Document:

Exhibit 10.87

                                                                 Loan No.: 77287

                           LOAN AND SECURITY AGREEMENT

            THIS LOAN AND SECURITY  AGREEMENT (this "Agreement") dated April 16,
2007 is made by and  between  BLUEGREEN/BIG  CEDAR  VACATIONS,  LLC,  a Delaware
limited  liability  company   ("Borrower"),   whose  address  is  c/o  Bluegreen
Corporation,  4960 Conference Way North,  Suite 100, Boca Raton,  FL 33431,  and
GENERAL ELECTRIC CAPITAL CORPORATION,  a Delaware corporation ("Lender"),  whose
address is 500 West Monroe Street, Chicago, Illinois 60661.

                                   A. RECITALS

            1. All  capitalized  terms  used  herein  shall  have  the  meanings
ascribed thereto in Section B, below.

            2.  Borrower  desires  Lender to extend a revolving  secured  credit
facility to Borrower in an  aggregate  amount not to exceed  Forty-Five  Million
Dollars ($45,000,000.00) in accordance with the terms of this Agreement.

            3. Borrower's  obligations  under the Loan Documents will be secured
by, among other things: (1) a security interest in certain Notes Receivable; and
(2) the other Collateral. In addition, pursuant to Section 5.1 of this Agreement
and subject to the RFC Loan Documents, Borrower agrees to a negative pledge with
respect to the Operating Contracts.

                             B. CERTAIN DEFINITIONS

                                  Defined Terms

            The following  terms used in this Agreement shall have the following
meanings:

            Advance.  Proceeds of the Loan  advanced from time to time by Lender
to Borrower in accordance with this Agreement.

            Affiliate. Any Person: (a) which directly or indirectly controls, or
is  controlled  by,  or is under  common  control  with such  Person;  (b) which
directly or indirectly  beneficially  owns or holds five percent (5%) or more of
the voting stock of such  Person;  or (c) for which five percent (5%) or more of
the voting stock of which is directly or indirectly  beneficially  owned or held
by such Person;  provided,  however, that under no circumstances shall Guarantor
be deemed an  Affiliate  of any 5% or greater  shareholder  of  Guarantor or any
Affiliate of such  shareholder who is not a Direct Affiliate (as defined herein)
of  Guarantor,  nor shall any such  shareholder  be deemed to be an Affiliate of
Guarantor. The term "control" means the possession,  directly or indirectly,  of
the power to direct or cause the direction of the  management  and policies of a
Person,  whether  through the  ownership  of voting  securities,  by contract or
otherwise. For purposes of this definition,  (i) any entity included in the same
GAAP consolidated  financial statements and the notes therein as Guarantor shall
be an Affiliate of Guarantor (a "Direct  Affiliate") and (ii) Guarantor shall be
deemed to be an Affiliate of Borrower.

                                      -1-
<PAGE>

            Agreement. As defined in the introductory paragraph.

            Amenities. Any and all facilities, whether on-site or off-site, that
are  described in the sales  prospectus  and the Public Report for the Timeshare
Project  whether  available  at  the  Timeshare  Project  or  elsewhere  at  the
Facilities  and  that  are or  committed  to be made  available  for the use and
enjoyment of the owners of Timeshare  Interests under the terms of the Timeshare
Documents.

            Anti-Money  Laundering Laws. Those laws,  regulations and sanctions,
state and federal, criminal and civil, that (a) limit the use of and/or seek the
forfeiture  of  proceeds  from  illegal   transactions;   (b)  limit  commercial
transactions with designated countries or individuals believed to be terrorists,
narcotics dealers or otherwise  engaged in activities  contrary to the interests
of the United  States;  (c)  require  identification  and  documentation  of the
parties with whom a Financial Institution conducts business; or (d) are designed
to disrupt the flow of funds to terrorist organizations.  Such laws, regulations
and sanctions  shall be deemed to include the Patriot Act, the Bank Secrecy Act,
the  Trading  with the  Enemy  Act,  50  U.S.C.  App.  Section  1 et  seq.,  the
International Emergency Economic Powers Act, 50 U.S.C. Section 1701 et seq., and
the sanction  regulations  promulgated  pursuant thereto by the OFAC, as well as
laws  relating to  prevention  and  detection of money  laundering  in 18 U.S.C.
Sections 1956 and 1957.

            Approved  Transactions.  As defined in Section  4.13,  and any other
bona fide, good faith  transaction with an Affiliate of Borrower,  provided such
transaction  is on "market" terms and would not reasonably be expected to have a
Material Adverse Effect.

            Association.   The  not-for-profit  Missouri  corporation  which  is
responsible  for operating and  maintaining the Timeshare Plan and the Timeshare
Project pursuant to the terms of the Timeshare Documents.

            Availability.  At all times during the Revolving Period,  the lesser
of (x) the Maximum Amount minus the current outstanding principal balance of the
Loan or (y) an amount equal to the  Availability  Percentage times the principal
balance of Eligible Notes Receivable to be assigned to Lender in connection with
the then current Advance. After expiration of the Revolving Period, Availability
shall be Zero Dollars ($0).

            Availability Percentage.  The percentage adjusted in accordance with
Exhibit D attached hereto.

            Availability  Report.  A monthly report certified by Borrower in the
form attached hereto as Exhibit B evidencing Availability.

            Bank Secrecy Act. The Bank Secrecy Act, 31 U.S.C.  Sections  5311 et
seq.

            Base Rate. The U.S.  Dollar rate (rounded  upward to the nearest one
thousandth)  listed on page 3750  (i.e.,  the Libor page) of the  Telerate  News
Services titled "British Banker  Association  Interest  Settlement  Rates" for a
designated  maturity of one (1) month determined as of 11:00 a.m. London Time on
the second (2nd) full  Eurodollar  Business Day next  preceding the first day of
each month with respect to which interest is payable under the Loan (unless such
date is not a  Business  Day in  which  event  the  next  succeeding  Eurodollar
Business  Day which is also

                                      -2-
<PAGE>

a Business Day will be used).  If the Telerate News Services (a) publishes  more
than one (1) such Libor  Rate,  the average of such rates  shall  apply,  or (b)
ceases to publish the Libor Rate,  then the Base Rate shall be  determined  from
such  comparable  substitute  financial  reporting  service  as  Lender  in  its
reasonable discretion shall determine. The term "Eurodollar Business Day", shall
mean  any day on  which  banks  in the City of  London  are  generally  open for
interbank or foreign exchange transactions.

            Big Cedar. Big Cedar,  L.L.C., a Missouri limited liability company,
one of the members of Borrower.

            Borrower. As defined in the introductory paragraph.

            Borrower Party. Borrower, Guarantor and each member of Borrower.

            Borrower's  Equity. The amount of Borrower's equity in the Timeshare
Project as referenced in Schedule 1.1.

            Business  Day.  Any day which is not a Saturday or Sunday or a legal
holiday  under the laws of the State of  Illinois,  State of New York,  State of
Missouri, State of Florida or the United States.

            Charges. All federal, state, county, city, municipal, local, foreign
or other governmental  taxes,  levies,  assessments,  charges,  liens, claims or
encumbrances upon or relating to (a) the Collateral,  (b) the Indebtedness,  (c)
the  employees,  payroll,  income or gross receipts of any Borrower Party (other
than Big Cedar),  (d) any Borrower  Party's (other than Big Cedar)  ownership or
use of any  properties or other assets,  or (e) any other aspect of any Borrower
Party's (other than Big Cedar) business.

            Closing Date. The date that Borrower satisfies all of the conditions
set forth in Schedule 1.1, Part A, hereof.

            Club Trust Agreement.  Collectively, that certain Bluegreen Vacation
Club  Amended and  Restated  Trust  Agreement,  dated as of the 18th day of May,
1994, among Bluegreen  Vacations  Unlimited,  Inc., the Club Trustee,  Bluegreen
Resorts Management, Inc. and Bluegreen Vacation Club, Inc., as amended, restated
or otherwise modified from time to time.

            Club Trustee.  Vacation Trust, Inc., a Florida  corporation,  in its
capacity as trustee under the Club Trust Agreement and its permitted  successors
and assigns.

            Code.  The  Uniform  Commercial  Code as adopted and in force in the
State of New York as the same may be amended from time to time; provided that in
the event that,  by reason of  mandatory  provisions  of law,  any or all of the
attachment,  perfection  or priority of, or remedies  with respect to,  Lender's
Lien on any Collateral is governed by the Uniform Commercial Code as enacted and
in effect in a  jurisdiction  other than the State of New York,  the term "Code"
shall mean the  Uniform  Commercial  Code as enacted and in effect in such other
jurisdiction  solely for  purposes  of the  provisions  hereof  relating to such
attachment,  perfection,  priority or remedies and for  purposes of  definitions
related to such provisions.

                                      -3-
<PAGE>

            Collateral. Has the meaning assigned in Section 2.1.

            Collection Account. The account of Lender, account no. 50-256-497 at
Deutsche Bank, New York, New York, ABA No. 0210-01033,  or such other account as
Lender may specify in writing to Borrower.

            Commitment Fee. A loan commitment fee with respect to the Loan equal
to Two Hundred Twenty-Five Thousand Dollars  ($225,000.00),  which is payable in
accordance with Section 1.6.

            Common Furnishings. The furnishings,  fixtures and equipment located
within the Resort  Accommodations  or other portions of the Timeshare Project or
Facilities owned by, conveyed to, or to be conveyed to, the Association.

            Compliance  Documents.  With respect to sales of Timeshare Interests
in any state or jurisdiction: (a) an opinion letter in substance satisfactory to
Lender from an attorney  licensed in such state or  jurisdiction  addressing (i)
the compliance of Borrower's offering  materials,  sales and financing documents
and sales  practices  with the  applicable  law of such  state or  jurisdiction,
including the Timeshare  Act, all  applicable  Consumer Laws and usury law, (ii)
the  enforceability  of the Notes  Receivables and Security  Instruments,  (iii)
zoning, and (iv) the due organization and good standing of the Association;  (b)
if applicable,  evidence satisfactory to Lender that the Governmental  Authority
of such  state or  jurisdiction  having  jurisdiction  over  sales of  Timeshare
Interests has issued all required  approvals of Borrower's  offering  materials,
sales and financing documents and sales practices,  and (c) copies of Borrower's
offering materials, sales and financing documents as, if applicable, approved by
the applicable Governmental Authority of such state or jurisdiction.

            Confidentiality Agreement. The Confidentiality Agreement dated as of
July 27, 2006, among Borrower, Guarantor and Lender.

            Consumer Laws. The applicable  portions of any federal,  state,  and
local laws and regulations relating to interest,  usury,  consumer credit, equal
credit opportunity,  fair credit reporting,  privacy, consumer protection, false
or deceptive  trade  practices  and  disclosure,  and the sales and marketing of
timeshare  units,  including  but not limited to the Truth In Lending  Act,  the
Equal Credit  Opportunity  Act, the Fair Credit  Reporting Act, the Fair Housing
Act, the Real Estate  Settlement  Procedures  Act, the Federal Trade  Commission
Act, the Fair Debt  Collection  Practices Act, the  Gramm-Leach-Bliley  Act, the
Patriot Act, any  applicable  privacy laws and the Soldier's and Sailor's  Civil
Relief Act.

            Costs. All reasonable expenditures and expenses which may be paid or
incurred  by or on  behalf  of  Lender  in  connection  with the  documentation,
modification,  workout, collection or enforcement of the Loan or any of the Loan
Documents.  Notwithstanding  the  foregoing,  Costs  payable  on the date of the
initial Advance shall be limited to (a) the reasonable  fees, costs and expenses
of Lender's  attorneys in connection with the documentation of the Loan, the due
diligence review of Borrower's deliveries and the consumer credit audit; and (b)
all applicable title,  filing and recording fees and other closing costs. During
the term of the Loan,  Costs  payable by  Borrower  shall  include:  payments to
remove or protect against liens;

                                      -4-
<PAGE>

reasonable  attorneys'  fees, costs and expenses;  receivers'  fees;  engineers'
fees; accountants' fees; independent  consultants' fees (including environmental
consultants);  fees of the  Custodian  and the  servicing  agent;  all costs and
expenses  incurred  in  connection  with  any  of  the  foregoing;  outlays  for
documentary  and  expert   evidence;   stenographers'   charges;   stamp  taxes;
publication  costs; and costs (which may be estimates as to items to be expended
after entry of an order or judgment) for procuring all such  abstracts of title,
title and UCC searches,  and examination,  title insurance policies, and similar
data  and  assurances  with  respect  to  title as  Lender  may deem  reasonably
necessary  either to  prosecute  any  action or to  evidence  to  bidders at any
foreclosure  sale a true  condition  of the  title  to,  or the  value  of,  the
Collateral.  Notwithstanding the foregoing,  Lender shall pay the costs incurred
by Borrower in connection with obtaining FICO scores of Purchasers in connection
with  Financed  Notes  Receivable,  any  insertion  fee charged by Custodian for
inserting copies of blanket title insurance policies in each applicable Eligible
Note  Receivable  file as required under  subparagraph  (j) of the definition of
Eligible  Note  Receivable,  and  $40,000.00  that  Lender  will pay in Lender's
attorneys' fees relating to the initial Loan closing.

            Custodial Agreement.  An agency and custodial agreement, on Lender's
form, among Borrower,  Lender and Custodian providing for the maintenance of the
Pledged Documents.

            Custodian. Such Person designated by Lender and approved by Borrower
to maintain physical possession of the Pledged Documents.  The initial Custodian
shall be U.S. Bank National Association.

            Custodian Certificate. As defined in the Custodial Agreement.

            Debt. For any Person,  without duplication:  (a) all indebtedness of
such Person for borrowed money,  for amounts drawn under a letter of credit,  or
for the deferred  purchase price of property for which such Person or any of its
assets  is  liable,  (b) all  amounts  required  to be paid by such  Person as a
guaranteed payment to partners or a preferred or special dividend, including any
mandatory  redemption of shares or interests,  but excluding minority interests,
(c) all  indebtedness  guaranteed  by such Person,  directly or  indirectly  (if
required to be recorded as a liability under GAAP),  (d) all  obligations  under
leases that constitute capital leases for which such Person or any of its assets
is liable or subject, and (e) all obligations of such Person under interest rate
swaps, caps, floors,  collars and other interest hedge agreements,  in each case
whether such Person or any of its assets is liable or subject,  contingently  or
otherwise,  as  obligor,   guarantor  or  otherwise,  or  in  respect  of  which
obligations such Person otherwise assures a creditor against loss.

            Default  Rate.  The  lesser of (a) the  maximum  per  annum  rate of
interest  allowed by  applicable  law,  and (b) five  percent  (5%) per annum in
excess of the applicable Interest Rate.

            Defaulted  Notes.  Notes Receivable that have been either (a) deemed
uncollectible  by  Borrower  or (b) are more than ninety (90) days past due on a
contractual basis.

            Dollars. United States Dollars.

                                      -5-
<PAGE>

            EBITDA.  For any period,  Net Income for such  period  plus  without
duplication and to the extent reflected as a charge in the statement of such Net
Income  for such  period,  the sum of (i)  income  tax  expense,  (ii)  Interest
Expense,  (iii) depreciation and amortization  expense, and (iv) amortization of
intangibles (including, but not limited to, goodwill).

            Eligible Note Receivable. Each Note Receivable satisfying all of the
following criteria:

            (a) Except with respect to Program  Receivables,  payments due under
the  Note   Receivable   shall  be   self-amortizing   and  payable  in  monthly
installments;

            (b) Except with respect to Program Receivables, the term shall be no
greater than one hundred eighty (180) months; provided, however, that the lesser
of (i)  Eligible  Notes  Receivable  having an  aggregate  principal  balance of
$4,500,000.00, or (ii) ten percent (10%) of all Eligible Notes Receivable (based
on aggregate principal balances at the time of the applicable Advance), may have
an original term of between one hundred  twenty one (121) months and one hundred
eighty (180) months so long as the primary  Purchaser  (exclusive  of Purchasers
who are not residents of the United States)  thereunder  has a weighted  average
FICO score of at least 700 at the time of testing  for the  applicable  Advance,
and that such Note  Receivable  provides,  as applicable,  for joint and several
liability of the Purchasers thereunder;

            (c) At the time of the applicable  Advance,  the interest rate shall
be no less than eight and one quarter percent (8.25%) per annum and the weighted
average  interest rate of the Financed Notes Receivable which are the subject of
the Advance shall not be less than fourteen percent (14%) per annum;

            (d)  Purchaser  has made at least  one (1)  payment  under  the Note
Receivable  (except  where  such  Note  Receivable  is a Program  Receivable  or
pertains to an Upgraded Note Receivable) and the Purchaser thereunder has made a
cash down  payment of at least ten percent  (10%) of the actual  purchase  price
(including  closing  costs) of the Timeshare  Interest  (which cash down payment
may, in the case of an Upgraded Note  Receivable or conversions  under a Sampler
Program Agreement,  be represented in part or in whole by the principal payments
on, as  applicable,  such original Note  Receivable or the related  Sampler Loan
since  its date of  origination)  and no part of such  payment  has been made or
loaned to Purchaser by Borrower or an Affiliate;

            (e) No  installment  is more  than  thirty  (30)  days past due on a
contractual  basis at the time of  assignment  to Lender,  nor becomes more than
ninety (90) days past due on a contractual basis thereafter;

            (f) The Resort  Accommodations  with respect to which the applicable
Timeshare  Interest has been  purchased have been completed (as are evidenced by
delivery to Lender of the Certificate of Occupancy or Certificate of Conformance
or other local equivalent attached to the Timeshare Declaration),  developed and
furnished in accordance with the Purchase Documents;

            (g) The Amenities  described in the applicable Public Report for the
Timeshare  Project  have  been  completed  (in  accordance  with any  applicable
building inspection required

                                      -6-
<PAGE>

under Governmental  Requirements) and are available for use by all Purchasers as
described in the applicable Public Report and applicable Timeshare Document;

            (h) Subject to the Permitted Exceptions, the Note Receivable is free
and clear of adverse claims,  liens and encumbrances  and is not currently,  nor
shall  it be  potentially  in the  future,  subject  to  claims  of  rescission,
invalidity, unenforceability, illegality, defense, offset or counterclaim;

            (i) The Note  Receivable  is  secured by a first  priority  security
interest on the purchased Timeshare Interest pursuant to a Mortgage;

            (j) The Mortgage is insured under a mortgagee title insurance policy
(or will be insured,  as  evidenced  by a pro forma  mortgagee  title  insurance
policy) acceptable to Lender subject only to those exceptions to title as Lender
approves (and Borrower and Lender agree that a blanket pro forma mortgagee title
insurance  policy  with a schedule  attached  listing  borrower(s),  Unit(s) and
week(s) is deemed acceptable  provided that, at Lender's expense,  a copy of any
blanket  policy shall be placed by Custodian in each  applicable  Eligible  Note
Receivable file);

            (k) At the time of the applicable Advance, the primary Purchaser has
a FICO score in an amount  sufficient to yield a weighted  average FICO score of
at least 675 exclusive of Purchasers  who are not residents of the United States
and such  Note  Receivable  provides,  as  applicable,  for  joint  and  several
liability thereunder;

            (l)  Purchaser  is not an  obligor  under more than  $100,000.00  in
Financed Notes Receivable;

            (m) The Note Receivable is payable in Dollars;

            (n) The  Note  Receivable  and the  Purchase  Documents  are  valid,
genuine and enforceable against the obligor thereunder, and such obligor has not
assigned his or her interest thereunder;

            (o)  Payments  have not been made by  Borrower or any  Affiliate  of
Borrower on the obligor's behalf;

            (p) The  Purchaser  under such Note  Receivable is not on any of the
Lists;

            (q) Except as may be required pursuant to the  Servicemembers  Civil
Relief Act or for a reduction or increase in the interest  rate not in excess of
1.0% in respect of a Purchaser's  election to begin or cease making payments via
pre-authorized  checking or to correct  typographical  errors in the Mortgage or
Purchase  Documents  related to the Note  Receivable,  if any,  or as  otherwise
approved by Lender in writing,  the original terms of the Note  Receivable  have
not been modified in any way;

            (r) At the  time  of the  applicable  Advance,  the  Purchaser  is a
resident of the United  States or Canada;  provided,  however,  that  Purchasers
under up to ten percent  (10%)  (based on aggregate  principal  balances) of the
Financed  Notes  Receivable  which are the  subject of the Advance may reside in
countries other than the United States or Canada; and further

                                      -7-
<PAGE>

provided  that not more than two and a half  percent  (2.5%) of  Financed  Notes
Receivable  which are the subject of the Advance  (based on aggregate  principal
balances) are made by foreign residents (i.e., residents of countries other than
the United States or Canada) from the same country;

            (s) At the time of the applicable  Advance,  if such Note Receivable
is a Program  Receivable,  such Note  Receivable  plus any other  Financed Notes
Receivable  which  are  the  subject  of  the  Advance  and  which  are  Program
Receivables  shall not exceed eight  percent (8%) (based on aggregate  principal
balances) of all Financed Notes Receivable which are the subject of the Advance;
and

            (t) The Lender has received a Custodian Certificate  evidencing that
the  originals or copies,  as required  under this  Agreement  and the Custodial
Agreement,  of the Pledged  Documents  relating to such Note Receivable,  are in
Custodian's possession.

            Environmental Laws. Any federal, state or local law (whether imposed
by statute,  ordinance,  rule, regulation,  administrative or judicial order, or
common law), now or hereafter  enacted,  governing  health,  safety,  industrial
hygiene,   the  environment  or  natural  resources,   or  Hazardous  Materials,
including,  without  limitation,  such laws governing or regulating (a) the use,
generation,   storage,  removal,  recovery,   treatment,   handling,  transport,
disposal,  control, release,  discharge of, or exposure to, Hazardous Materials,
(b) the transfer of property upon a negative  declaration or other approval of a
governmental  authority of the environmental  condition of such property, or (c)
requiring notification or disclosure of releases of Hazardous Materials or other
environmental  conditions  whether or not in connection with a transfer of title
to or interest in property.

            Event of  Default.  Has the  meaning  set forth in Article 7 of this
Agreement.

            Facilities. Collectively, the buildings, Improvements and furniture,
fixtures and equipment comprising the Timeshare Project, the Timeshare Property,
the Resort  Accommodations  and the Amenities and known as Big Cedar  Wilderness
Club Condominium, Ridgedale, Missouri.

            Fees. Any and all fees payable to Lender pursuant to Sections 1.5(a)
and 1.6 of this Agreement.

            FICO.  A  Purchaser's  credit  score shall be the one  generated  by
Experian and, to the extent not available,  it shall be the one generated by one
of the following credit reporting agencies: (i) Equifax, (ii) Transunion,  or by
a credit reporting agency of similar experience and recognition in the industry.

            Financed  Note(s)  Receivable.  Any Note  Receivable  as to which an
Advance has been made and which has been  pledged and  collaterally  assigned to
Lender  pursuant to the assignment as set forth in Exhibit F attached  hereto as
security for the Loan.

            Financial  Institution.  A United States  Financial  Institution  as
defined in 31 U.S.C. 5312, as periodically amended.

                                      -8-
<PAGE>

            Force Majeure  Delay.  Any cause or event that is beyond the control
and not due to the negligence of Borrower or Guarantor (including when Guarantor
acts in its capacity as Servicer under the Servicing  Agreement),  which delays,
prevents or prohibits the  performance  of any duty or obligation of Borrower or
Guarantor  (including  when Guarantor acts in its capacity as Servicer under the
Servicing  Agreement) under the Loan Documents,  including,  without limitation,
computer,  electrical and mechanical  failures,  acts of God or the elements and
fire;  provided,  that no such  cause or event  shall  be  deemed  to be a Force
Majeure Delay unless Borrower or Guarantor (including when Guarantor acts in its
capacity as Servicer  under the  Servicing  Agreement)  shall have given  Lender
written notice thereof as soon as possible after the beginning of such delay.

            GAAP.  Generally  accepted  accounting  principles,   applied  on  a
consistent  basis,  set forth in Opinions of the Accounting  Principles Board of
the American  Institute of Certified Public  Accountants and/or in statements of
the  Financial   Accounting   Standards   Board  which  are  applicable  in  the
circumstances as of the date in question; and the requisite that such principles
be applied on a  consistent  basis  means that the  accounting  principles  in a
current  period are  comparable  in all material  respects to those applied in a
preceding period, with any exceptions thereto noted.

            Governmental Authority.  The United States of America, the state and
county in which any of the Facilities is located,  and/or any other governmental
authorities,  including, if applicable the governmental authorities of a foreign
country or political  subdivision of such foreign country,  having  jurisdiction
over Borrower,  the Association,  the Timeshare Project, the Timeshare Plan, the
Facilities or the offer and sale of Timeshare Interests.

            Governmental Requirements. All rules, regulations,  ordinances, laws
and statutes of any Governmental  Authority which affect the Timeshare  Project,
the Timeshare Plan, the Association, the Facilities, any Amenities or Borrower's
offer, sale and financing of Timeshare Interests.

            Guarantor. Bluegreen Corporation, a Massachusetts corporation.

            Guaranty.  A guaranty  agreement,  on  Lender's  form,  executed  by
Guarantor  guarantying  all of the  obligations  of Borrower to Lender under the
Loan Documents.

            Hazardous Materials. (a) Petroleum or chemical products,  whether in
liquid,  solid,  or gaseous  form,  or any fraction or by product  thereof,  (b)
asbestos or asbestos containing materials, (c) polychlorinated biphenyls (pcbs),
(d) radon gas, (e) underground  storage tanks,  (f) any explosive or radioactive
substances, (g) lead or lead based paint, or (h) any other substance,  material,
waste or mixture which is or shall be listed,  defined, or otherwise  determined
by any  governmental  authority to be hazardous,  toxic,  dangerous or otherwise
regulated, controlled or giving rise to liability under any Environmental Laws.

            Improvements. The timeshare complex as existing from time to time on
the Land,  including  all related  common  elements,  limited  common  elements,
parking areas and other Amenities, as established by the Timeshare Documents.

            "Include" or similar words. Include, without limitation.

                                      -9-
<PAGE>

            Indebtedness.  All payment  obligations  of Borrower to Lender under
the Loan Documents.

            Intangible  Asset.  A  nonphysical,   noncurrent  right  that  gives
Guarantor or any of its  subsidiaries an exclusive or preferred  position in the
marketplace  including  but  not  limited  to a  copyright,  patent,  trademark,
goodwill,  organization costs,  capitalized advertising cost, computer programs,
licenses for any of the preceding,  governmental licenses (e.g., broadcasting or
the  right to sell  liquor),  leases,  franchises,  mailing  lists,  exploration
permits, import and export permits, construction permits, and marketing quotas.

            Intercreditor Agreement. The letter agreement between Lender and RFC
executed  substantially  concurrently  herewith,  acknowledging  the  respective
rights of Lender and RFC with respect to the Timeshare Project.

            Interest  Expense.  For any period,  Borrower's or  Guarantor's,  as
applicable,  total  interest  expense (net of interest  income) for such period,
including  the  current  interest  portion of  long-term  debt,  and the current
interest portion of capital lease payments, determined on a GAAP basis.

            Interest Holder. As defined in Section 5.1.

            Interest Rate. The Loan Interest Rate.

            Land.  The real property  located in Ridgedale,  Missouri,  and more
particularly  described  in  Exhibit  A  hereto,  as  amended  from time to time
pursuant to changes in the Timeshare Declaration.

            Lender.  As defined in the introductory  paragraph and including any
successors or assigns.

            Liabilities.  The  aggregate  value of all short and long term notes
payable on Borrower's or  Guarantor's  balance sheet,  as  applicable,  which is
included  among the  financial  statements  and the notes  therein  delivered to
Lender  pursuant to this Agreement less the total dollar amount of monies loaned
by an Affiliate to Borrower, the payment of which (including payment of interest
or  principal)  has been  fully  subordinated  to the Loan and to the  liens and
rights to payment in favor of  Lender,  as  determined  to  Lender's  reasonable
satisfaction, all as determined in accordance with GAAP.

            Lien.  Any  mortgage  or  deed  of  trust,  pledge,   hypothecation,
assignment,   deposit  arrangement,  lien,  charge,  claim,  security  interest,
easement or encumbrance, or preference,  priority or other security agreement or
preferential  arrangement of any kind or nature whatsoever  (including any lease
or title retention agreement,  any financing lease having substantially the same
economic  effect as any of the  foregoing,  and the filing of, or  agreement  to
give, any financing  statement  perfecting a security interest under the Code or
comparable law of any jurisdiction).

            Lists. The Specially  Designated  Nationals and Blocked Persons List
maintained  by  the  OFAC,  and  any  other  list  of  terrorists  or  terrorist
organizations maintained pursuant to

                                      -10-
<PAGE>

Executive Order No. 133224 (Sept. 23, 2001), any rule or regulation of OFAC with
respect to such Executive Order,  any enabling  legislation with respect to such
Executive Order,  any other  applicable  Executive Order or any other applicable
law, statute, rule or regulation.

            Litigation. Any action, demand, lawsuit, investigation,  proceeding,
order or injunction.

            Loan.  The  Forty-Five  Million  Dollar  ($45,000,000.00)  revolving
credit facility described in this Agreement.

            Loan  Documents.   Collectively,   this  Agreement,  the  Note,  any
Guaranty,  the  Security  Agreement,   the  Custodial  Agreement,   the  Lockbox
Agreement, the Servicing Agreement,  the Confidentiality  Agreement, and any and
all other  agreements,  documents,  instruments  and  certificates  delivered or
contemplated to be delivered in connection  with this Agreement,  as such may be
amended, renewed, extended, restated or supplemented from time to time.

            Loan  Interest  Rate. A floating rate per annum,  adjusted  monthly,
equal to the Base Rate plus one and three-quarters percent (1.75%).

            Loan Maturity Date. April 16, 2016.

            Loan Year. Each successive  twelve (12) month period commencing with
the expiration of the Revolving Period.

            Lockbox  Account.  The  account  designated  pursuant to the Lockbox
Agreement.

            Lockbox  Agent.  Bank  of  America,   N.A.,  or  any  other  banking
institution selected by Borrower and approved by Lender to act as the depositary
of payments on the Financed Notes Receivable under the Lockbox Agreement.

            Lockbox Agreement.  An agreement among Borrower,  Lender and Lockbox
Agent  providing  for the receipt by Lockbox  Agent of payments on the  Financed
Notes Receivable and disbursement of such payments to Lender.

            Management   Agreement.   An  agreement  among   Bluegreen   Resorts
Management, Inc. and the Association for management of the Timeshare Project.

            Mandatory Prepayment. Any prepayment required by Section 1.5 of this
Agreement.

            Material  Adverse  Effect.  A  material  adverse  effect  on (i) the
financial  condition  or  operations  of Borrower,  Guarantor  or the  Timeshare
Project,  (ii) the ability of Borrower or Guarantor  to perform its  obligations
under the Loan Documents to which it is a party, (iii) the legality, validity or
enforceability of any Loan Document, (iv) Borrower's interest in the Collateral,
or (v) the  collectibility of the Notes Receivable  generally or of any material
portion of the Notes Receivable.

                                      -11-
<PAGE>

            Maximum Amount. $45,000,000.00.

            Minimum Interest Coverage Ratio. For any period described in Section
6.1(c)  of this  Agreement,  the ratio of EBITDA  to  Interest  Expense  for any
period;  excluding,  however,  interest  paid or payable under  indebtedness  to
Affiliates of Borrower that is fully  subordinated  to the Loan and to the liens
and rights to payment in favor of Lender.

            Monthly Reports.  The monthly reports  required  pursuant to Section
6.2(a) of this Agreement.

            Mortgage.  A mortgage or deed of trust made by the Club Trustee,  on
behalf of a Purchaser, to secure a Purchaser's Note Receivable.

            Net  Income.  The net income of  Borrower  or the  consolidated  net
income of Guarantor, as applicable, as determined in accordance with GAAP.

            Net Income Adjustment. The sum of (a) fifty percent (50%) of the Net
Income for  Guarantor (on a  consolidated  basis) for the quarter then ending as
determined  from  the  quarterly  financial  statements  and the  notes  therein
required  pursuant  to Section 6.2 hereof  plus (b) fifty  percent  (50%) of the
amount of any increase in  Guarantor's  total equity (on a  consolidated  basis)
arising from the sale of stock,  membership interests  partnership  interests or
other ownership interests in Guarantor; provided, that at the end of each fiscal
year, the Net Income  Adjustment shall be re-calculated  based on the Net Income
for the year  then  ending  as  determined  from the  audited  annual  financial
statements and the notes therein required pursuant to Article 6 hereof.

            Note. One or more  revolving  promissory  notes  evidencing the Loan
executed and delivered by Borrower to Lender concurrently herewith.

            Note Receivable.  A promissory note executed by a Purchaser in favor
of Borrower  in  connection  with such  Purchaser's  acquisition  of a Timeshare
Interest.

            OFAC.  The  Office of  Foreign  Assets  Control,  Department  of the
Treasury.

            Operating  Contracts.  The Management  Agreement,  the  reservations
systems agreement and any marketing,  maintenance, service, franchise, sales and
other  contracts  entered  into  by  Borrower  with  respect  to the  Facilities
identified in Exhibit I.

            Owner Beneficiary Rights. As defined in the Club Trust Agreement.

            Patriot Act. The USA PATRIOT Act of 2001, Pub. L. No. 107 56.

            Permitted Exceptions. The exceptions to title listed on Exhibit J.

            Person. Natural persons, corporations, limited partnerships, general
partnerships,  joint stock companies, joint ventures,  associations,  companies,
trusts,  banks,  trust  companies,   land  trusts,   business  trusts  or  other
organizations,  whether or not legal entities,  and governments and agencies and
political subdivisions thereof.

                                      -12-
<PAGE>

            Pledged  Documents.   The  Financed  Notes  Receivable,   the  other
Receivables Transaction Documents, and the Purchase Documents,  inclusive of any
modifications or amendments thereto.

            Potential  Default.  An event  which,  with the  giving of notice or
passage of time, or both, would constitute an Event of Default.

            Pre-Tax Income. Net Income before the imposition of Taxes.

            Program Receivable. A Note Receivable whereby the Purchaser has made
a down  payment of at least fifty  percent  (50%) of the  purchase  price of the
subject Timeshare Interest or Timeshare  Interest(s),  having an annual interest
rate of at least 8.25%, and with the remaining  balance (together with interest)
due and payable  within one (1) year of its  execution,  such balance to be paid
either in 12 monthly  amortizing  installments  of principal and interest or all
principal and interest due in a lump sum payment on the one year  anniversary of
the execution of such Note Receivable.

            Property Manager.  Bluegreen Resorts Management,  Inc., the property
manager of the Timeshare Project approved by Lender,  and any successor property
manager approved by Lender.

            Public  Reports.  The original sales  certificate  for the Timeshare
Project,  the Bluegreen Vacation Club Multi-Site Public Offering Statement,  and
any other public  reports now or hereafter  filed with and approved or issued by
any Governmental Authority with respect to the Timeshare Project.

            Purchase  Documents.  Any  purchase  agreement  and related sale and
escrow  documents,  executed and  delivered by a Purchaser to Borrower,  and all
deeds,  certificates  or  other  instruments  of  ownership  delivered  to  such
Purchaser by the Borrower,  with respect to the purchase of a Timeshare Interest
which is the subject of a Financed Note Receivable.

            Purchaser.  Any purchaser of one or more Timeshare  Interests who is
also an obligor under a Note Receivable.

            Qualified  Assignee.  (A)  any  Affiliate  of  Lender,  or  (B)  any
commercial  bank,  savings  and loan  association  or savings  bank or any other
entity which is an  "accredited  investor" (as defined in Regulation D under the
Securities  Act of  1933)  which  extends  credit  or buys  loans  as one of its
businesses,   including  insurance  companies,  mutual  funds,  lease  financing
companies,  commercial paper conduits and commercial finance companies,  in each
case,  which has a rating of BBB/A-1  (as  applicable)  or higher from S&P and a
rating of Baa2/P-1  (as  applicable)  or higher from Moody's at the date that it
becomes a "lender" hereunder.

            Reassignment.  A  Reassignment  of  Note  Receivable,  in  form  and
substance  attached  hereto as Schedule  2.3, to be executed  and  delivered  by
Lender when and as provided herein.

            Receivables  Transaction  Documents.  The  Note  Receivable  and any
Security  Instrument  delivered  as  security  for  a  Purchaser's   obligations
thereunder, any title insurance

                                      -13-
<PAGE>

policy  obtained by Purchaser in connection  with any Mortgage,  any guaranty or
Purchaser's  obligation  in  connection  with such Note  Receivable  and/or  any
Mortgage,  and  all  other  documents  or  instruments  executed  in  connection
therewith or evidencing a Purchaser's  or any  guarantor's  obligation  relating
thereto.

            Resort  Accommodation.  One individual  condominium  unit within the
Timeshare  Project  together  with  any  and all  interest  in  common  elements
appurtenant thereto, as provided in the Timeshare Declaration.

            Revolving  Period.  The  period  commencing  on the date  hereof and
ending on April 16, 2009.

            RFC. Residential Funding Corporation, a Delaware corporation.

            RFC Loan Documents.  That certain Loan and Security  Agreement dated
February  10,  2003,  between  Residential  Funding   Corporation,   a  Delaware
corporation,  as lender,  and  Bluegreen/Big  Cedar  Vacations,  LLC, a Delaware
limited liability company, as borrower, and the other parties thereto, as it may
be renewed, amended, restated or replaced ("RFC Loan Agreement"),  and the other
related  Loan  Documents  (as  "Loan  Documents"  is  defined  in the  RFC  Loan
Agreement),  that  certain  Loan  Agreement  dated  February  10,  2003  between
Residential  Funding  Corporation,  a  Delaware  corporation,   as  lender,  and
Bluegreen Vacations Unlimited,  Inc., a Florida corporation,  as borrower, as it
may be amended or modified  ("RFC AD&C Loan  Agreement")  and the other  related
Loan Documents (as "Loan  Documents" is defined in the RFC AD&C Loan Agreement),
and all other loan and security documents executed in connection therewith,  all
as may be renewed, amended, restated or replaced.

            Sampler Loan. A loan made to a purchaser by Borrower pursuant to the
terms of a Sampler Program Agreement.

            Sampler Program Agreement. A Bluegreen Vacation Club Sampler Program
Agreement,  pursuant  to which a  purchaser  thereunder  obtains  those  certain
benefits set forth therein which comprise the "Sampler  Membership" and, subject
to the terms and conditions thereof, has the opportunity to convert such Sampler
Membership into full ownership in the multi-site  timeshare plan described under
the Club Trust Agreement.

            Schedule. Each Schedule attached to this Agreement.

            Security  Agreement.  The  security  agreement  set  forth  in  this
Agreement  and any other  pledge or security  agreement  executed by Borrower to
secure the Loan.

            Security  Instrument.  The security  agreement,  mortgage or deed of
trust executed in connection  with a Note Receivable and encumbering a Timeshare
Interest.

            Service Charge. As defined in Section 1.2(a).

            Servicer.  Guarantor  or any  other  servicer  under  the  Servicing
Agreement as reasonably approved by Lender.

                                      -14-
<PAGE>

            Servicing  Agreement.  A servicing agreement  reasonably approved in
form and substance by Lender among Lender,  Borrower and Servicer  providing for
the servicing of the Financed Notes Receivable.

            Site  Assessment.   An  environmental  engineering  report  for  the
Timeshare  Project  prepared  by an  engineer  engaged  by Lender at  Borrower's
expense,  and in a manner  satisfactory to Lender,  based upon an  investigation
relating  to and  making  appropriate  inquiries  concerning  the  existence  of
Hazardous  Materials on or about the Timeshare Project,  and the past or present
discharge,  disposal,  release or escape of any such substances,  all consistent
with ASTM  Standard E 1527 93 (or any successor  thereto  published by ASTM) and
other good customary and commercial practice.

            Solvent.  With respect to any Person on a particular  date,  that on
such date (a) the fair value of the  property of such Person is greater than the
total amount of liabilities,  including contingent liabilities,  of such Person;
(b) the present fair salable value of the assets of such Person is not less than
the amount that will be required to pay the probable liability of such Person on
its debts as they become  absolute and matured;  (c) such Person does not intend
to, and does not believe that it will,  incur debts or  liabilities  beyond such
Person's  ability  to pay as such  debts and  liabilities  mature;  and (d) such
Person is not engaged in a business or  transaction,  and is not about to engage
in a business or transaction,  for which such Person's property would constitute
unreasonably small capital.

            Specially  Designated  National and Blocked  Persons.  Those Persons
that have been designated by executive  order or by the sanction  regulations of
OFAC as Persons with whom U.S.  Persons may not transact  business or must limit
their interactions to types approved by OFAC.

            Stock. All shares, options, warrants, general or limited partnership
interests,  membership  interests,  or  other  equivalents  (regardless  of  how
designated) of or in a corporation,  partnership,  limited  liability company or
equivalent entity whether voting or nonvoting, including common stock, preferred
stock or any other "equity  security" (as such term is defined in Rule 3a11-1 of
the General Rules and  Regulations  promulgated  by the  Securities and Exchange
Commission under the Securities Exchange Act of 1934).

            Subordinated  Indebtedness.  Debt represented by Guarantor's  junior
subordinated  debentures  or such  other Debt  incurred  by  Guarantor  which is
treated as subordinated indebtedness in accordance with GAAP.

            Tangible Net Worth.  On a  consolidated  basis for Guarantor and its
subsidiaries,  at any date,  (i) the sum of (a)  capital  stock  taken at par or
stated  value plus (b)  capital of  Guarantor  in excess of par or stated  value
relating to capital  stock plus (c)  retained  earnings  (or minus any  retained
earning  deficit)  of  Guarantor  plus (d) other  comprehensive  income plus (e)
Subordinated  Indebtedness  plus (f) an amount not in excess of  $600,000,000 of
non-recourse  receivables-backed  notes payable as reported on the  consolidated
balance sheet of Guarantor,  minus (ii) the sum of Intangible  Assets,  treasury
stock,  capital  stock  subscribed  for and  unissued  and  other  contra-equity
accounts, all determined in accordance with GAAP.

                                      -15-
<PAGE>

            Taxes. Taxes, levies, imposts, deductions,  Charges or withholdings,
and all liabilities with respect thereto, excluding taxes imposed on or measured
by the net income of Lender by the jurisdictions  under the laws of which Lender
is organized or conducts business or any political subdivision thereof.

            Timeshare  Act. The  applicable  provisions  of M.R.S.  chapter 407,
sections 407.600 to 407.630.

            Timeshare  Declaration.  The declaration of condominium  pursuant to
which the Timeshare  Project is encumbered  and the property  regime  thereat is
created as it may be lawfully amended and/or  supplemented  from time to time in
accordance with its terms.

            Timeshare Documents. Any and all documents evidencing or relating to
the Timeshare Plan, the sale of Timeshare Interests by Borrower or the Purchaser
Documents,  the Timeshare Declaration,  the Articles of Incorporation and Bylaws
of the  Association,  any management  agreement  between the  Association  and a
manager of the Timeshare  Project,  the rules and regulations of the Association
in the  Timeshare  Declaration,  and any  documents  referenced in the Timeshare
Declaration, or the Articles of Incorporation or Bylaws of the Association.

            Timeshare  Interest.  With respect to the Timeshare Project,  (x) an
undivided  fee simple  ownership  interest as a tenant in common or (y) a Resort
Interest (as defined in the Club Trust Agreement) that is an ownership  interest
in real property  substantially  similar to an ownership  interest  described in
clause (x) above  (including  Owner  Beneficiary  Rights),  in either  case with
respect  to  any  Resort  Accommodation,   with  a  right  to  use  such  Resort
Accommodation,  or a Resort  Accommodation  of such type,  generally for one (1)
week or a portion of one (1) week  annually  or  biennially,  together  with all
appurtenant rights and interests as more particularly described in the Timeshare
Documents.

            Timeshare  Plan. The common scheme and plan for the use,  occupancy,
enjoyment,  repair,  maintenance,  restoration  and improvement of the Timeshare
Project established by and as provided in the Timeshare Documents.

            Timeshare  Project.  That  certain  project  known as the "Big Cedar
Wilderness Club  Condominium,"  located in Ridgedale,  Missouri,  comprising the
Resort   Accommodations  and  Timeshare  Property  and  operated,   managed  and
maintained by the Association  and in which the Timeshare  Interests are sold to
Purchasers under the terms of the Purchase Documents.

            Timeshare  Property.  All real and  personal  property  owned by the
Association including, but not limited to, any Amenities and furniture, fixtures
and equipment  located in the Resort  Accommodations  or elsewhere  owned by the
Association.

            Title Company. Resort Title Agency, Inc.

            Total  Revenues.  For any period,  the total revenues of Borrower or
Guarantor, as applicable, as determined in accordance with GAAP.

                                      -16-
<PAGE>

            Upgraded Note Receivable. A new Eligible Note Receivable made by the
Purchaser  of an  existing  Financed  Note  Receivable  (i) who has  elected  to
terminate  such  Purchaser's  interest in an  existing  Timeshare  Interest  and
related Owner  Beneficiary  Rights and Vacation  Points (if any) in exchange for
purchasing  an upgraded  Timeshare  Interest of higher  value than the  existing
Timeshare  Interest and related Owner Beneficiary Rights and Vacation Points (if
any) and (ii)  whereby the  Borrower  releases the  Purchaser  from  Purchaser's
obligations in respect of the existing  Timeshare Interest and all related Owner
Beneficiary  Rights and Vacation  Points (if any) in exchange for  receiving (in
substantially  all cases) the new Eligible  Note  Receivable  from the Purchaser
secured by the upgraded  Timeshare Interest and related Owner Beneficiary Rights
and  Vacation  Points (if any).  All  Upgraded  Notes  Receivable  shall also be
considered to be Financed Notes Receivable, and shall be subject to the security
interest  granted to Lender  pursuant to Section 2.1 of this  Agreement,  unless
Lender shall have released such Financed Notes Receivable  pursuant to the terms
of this Agreement.

            U.S. Person.  Any United States citizen,  any entity organized under
the laws of the United States or its constituent  states or territories,  or any
entity,  regardless of where  organized,  having its principal place of business
within the United States or any of its territories.

            Vacation Points. As defined in the Club Trust Agreement.

                                    AGREEMENT

            NOW,  THEREFORE,  in consideration of the foregoing recitals and the
agreements,  provisions and covenants herein  contained,  and for other good and
valuable consideration, Borrower and Lender agree as follows:

                                    ARTICLE 1

                                    THE LOAN

1.1 The Loan.

            During the Revolving  Period,  provided that Borrower  satisfies all
conditions  set forth in Section 1.2 and Schedule 1.1, Parts A, B and C, hereof,
Lender  shall  make   Advances  of  the  Loan  to  Borrower  not  in  excess  of
Availability.

1.2 Advances of Loan Proceeds. Lender shall advance the Loan as follows:

                  (i) Availability. Advances of the Loan shall be (A) in minimum
amounts of One Hundred Thousand Dollars  ($100,000) each, (B) no more frequently
than one (1) time each week; provided, however, that, any request for an Advance
of the Loan of less than One Hundred  Thousand and no/100 Dollars  ($100,000) or
for any Advance of the Loan in excess of the number of Advances permitted in any
week shall be honored by Lender only at Lender's sole  discretion and, if Lender
agrees to make such  Advances,  shall,  in  Lender's  discretion,  be subject to
payment to Lender of a fee (the  "Service  Charge")  equal to the greater of one
percent (1%) of the requested  Advance or One Thousand Dollars ($1,000) for each
such Advance,  and (C) subject to Borrower's  compliance  with the conditions to
such Advance set forth herein.  Each Advance of the Loan shall be made by Lender
on the earlier to occur of

                                      -17-
<PAGE>

(x) two (2)  Business  Days after the later of  Lender's  receipt of  Borrower's
application  for a Loan Advance or (y) the date on which Borrower  complies with
the  conditions  to such Advance set forth herein.  Except in connection  with a
prepayment  mandated under Section  1.5(c) below,  any amounts repaid during the
Revolving Period may be reborrowed during the Revolving Period.

                  (ii) In addition to, and not in  limitation  of Advances  made
pursuant to Section 1.2(i) above,  and provided  Borrower is in compliance  with
the conditions to such Advance set forth in this Section 1.2 and in Schedule 1.1
hereof,  Lender shall make Advances of the Loan up to the amount of Availability
to  Borrower  not more  often  than once per month and  within  ten (10) days of
Borrower's delivery to Lender of written request therefor accompanied by Monthly
Reports  evidencing  such  Availability  to  Lender's  satisfaction.  During the
Revolving Period,  on the first day of each calendar  quarter,  the Availability
Percentage  will be  adjusted  as set forth in  Exhibit D to this  Agreement  to
preserve Lender's credit enhancement if there are increases in the Interest Rate
without corresponding increases in the weighted average consumer coupon rate for
the Financed Notes Receivable.

                  (iii) The initial Advance of the Loan shall be in an amount at
least equal to Twenty-Five  Million  Dollars  ($25,000,000.00)  and such Advance
must be made within thirty (30) days of the date of this  Agreement or Lender in
its sole  discretion  shall have the right to terminate its  obligations to lend
hereunder unless such Advance was not made due to a Force Majeure Delay.

                  (iv) Maximum Amount.  Notwithstanding anything to the contrary
contained  herein, in no event shall Borrower be entitled to any Advance if as a
result thereof the  outstanding  principal  balance of the Loan shall exceed the
Maximum Amount.

1.3 Interest Rate. The outstanding  principal  balance of the Loan together with
all  other  Indebtedness  shall  bear  interest  as set forth  below;  provided,
however,  that after the  occurrence  of an Event of Default  the Loan will bear
interest at the Default Rate:

            (a) Loan. The Loan shall bear interest at the Loan Interest Rate.

            (b) Computation.  Interest owing for each month shall be computed on
the basis of a fraction,  the  denominator of which is three hundred sixty (360)
and the  numerator of which is the actual  number of days elapsed from the first
day of such month (or, for the initial Advance, from the date of such Advance).

            (c) Late Charge; Default Interest.  Principal and other amortization
payments shall be applied to the Loan balance as and when actually received.  If
Borrower fails to pay any  installment of interest or principal  within five (5)
Business  Days  after the date on which the same is due,  Borrower  shall pay to
Lender a late charge on such past-due amount, as liquidated damages and not as a
penalty,  equal to five percent  (5%) of such  amount,  but not in excess of the
maximum amount of interest  allowed by applicable law. The foregoing late charge
is intended to compensate  Lender for the expenses incident to handling any such
delinquent  payment  and for the losses  incurred  by Lender as a result of such
delinquent payment.  Borrower agrees that,  considering all of the circumstances
existing on the date this  Agreement is executed,  the late charge  represents a
reasonable estimate of the costs and losses Lender will incur by

                                      -18-
<PAGE>

reason of late payment.  Borrower and Lender  further agree that proof of actual
losses would be costly,  inconvenient,  impracticable and extremely difficult to
fix.  Acceptance of the late charge shall not constitute a waiver of the default
arising  from the  overdue  installment,  and  shall  not  prevent  Lender  from
exercising any other rights or remedies available to Lender.  While any Event of
Default   exists,   the  Loan  shall  bear   interest  at  the   Default   Rate.
Notwithstanding the foregoing,  Borrower shall not be obligated to pay to Lender
a late charge on any past-due amounts due to a Force Majeure Delay or due to the
fault of the Lockbox Agent.

      1.4 Payments; Term.

            (a) From Lockbox Proceeds.  All funds collected by the Lockbox Agent
with  respect to the  Financed  Notes  Receivable  shall be paid to Lender daily
pursuant  to the  Lockbox  Agreement,  and,  provided  no  Event of  Default  or
Potential  Default then exists,  applied in the  following  order:  first to the
payment of Costs  incurred by Lender in collecting any amounts due in connection
with the Loan;  second,  to the  payment of accrued  but unpaid  interest on the
Loan; and  thereafter to the reduction of the principal  balance of the Loan. If
an Event of Default or  Potential  Default  then  exists,  the  proceeds  of the
Lockbox Account shall be applied as determined by Lender in its sole discretion.
If the funds received by Lender from the Lockbox Agent with respect to any month
are  insufficient to pay Costs and interest on the Loan in full,  Borrower shall
pay the  difference  to Lender  within five (5) Business  Days after  receipt of
written notice from Lender.

            (b) Upon  Maturity of the Loan.  On the Loan  Maturity  Date, if not
accelerated  prior  thereto  pursuant  to the terms of the Loan  Documents,  the
entire outstanding balance of the Loan, inclusive of all outstanding  principal,
accrued  but  unpaid  interest,  and  outstanding  Fees and  Costs  attributable
thereto, shall be due and payable.

1.5 Prepayments.

            (a) Voluntary Prepayments.

                  (i) Loan.  Other than  mandatory  prepayments  as set forth in
Section 1.5(b),  below,  and in connection with Upgraded Notes Receivable and as
provided in (y) below, prepayments of the Loan shall not be permitted during the
Revolving  Period nor  during the first or second  Loan  Years,  except  through
application  of funds  pursuant  to  Section  1.4(a).  Any  actual or  attempted
voluntary  prepayment  by Borrower in  violation  of such  voluntary  prepayment
prohibition  shall  constitute an immediate  Event of Default and Borrower shall
pay interest at the Default Rate  calculated  and payable based on the aggregate
committed  Loan amount  from and after the date of any such actual or  attempted
voluntary  prepayment  until the date that this  prepayment  prohibition  is not
longer  applicable.  Notwithstanding  the  foregoing,  (x) if an  inadvertent or
erroneous actual or attempted  voluntary  prepayment occurs in violation of this
Section  1.5(a) by reason of a direction  of funds to Lender in error,  Borrower
shall be entitled to withdraw  such  prepayment  within five (5)  Business  Days
after Borrower is notified in writing of such prepayment in which case, no Event
of Default  shall occur under this Section  1.5(a),  and (y)  Borrower  shall be
permitted to prepay the Loan during or after the Revolving Period by reason of a
dissolution  of  Borrower  pursuant  to the terms of  Section  8.1(A)(2)  of its
limited  liability  company  agreement  provided that if such prepayment is made
during the Revolving

                                      -19-
<PAGE>

Period or during the first Loan Year,  Borrower shall pay to Lender a prepayment
premium  equal to three percent (3%) of the amount of such  prepayment  together
with such prepayment.  For avoidance of doubt,  prepayment of the Loan during or
after the Revolving  Period by reason of a dissolution of Borrower  permitted by
the  foregoing  sentence  shall not  constitute  an Event of  Default or trigger
interest at the Default Rate. Thereafter,  voluntary prepayments of the Loan may
be made in whole,  but not in part, on any scheduled  interest payment date upon
not less than five (5)  Business  Days  prior  written  notice  to  Lender.  The
above-referenced  Default Rate  interest  and  prepayment  premium  which may be
applicable  to certain Loan  prepayments  as set forth  herein  shall  represent
liquidated  damages and reasonable  calculation of Lender's lost profits in view
of the difficulties and  impracticality of determining actual damages from early
termination of the Loan.

            (b) Mandatory Prepayments.

                  (i) Of Loan. If at any time the outstanding  principal balance
of the Loan exceeds the Maximum Amount, Borrower shall, within five (5) Business
Days after  receipt of written  notice from Lender  prepay the Loan in an amount
necessary  to reduce  the  principal  balance  of the  Loan,  to be  applied  as
determined by Lender in its sole discretion, such that the remaining outstanding
principal balance of the Loan does not exceed the Maximum Amount.

                  (ii)  Excess  Outstandings.  If at any  time  the  outstanding
principal balance of the Loan exceeds the Availability,  Borrower shall,  within
five (5) Business Days after receipt of written notice from Lender,  either,  at
Lender's sole option,  (A) prepay the Loan in an amount  necessary to reduce the
principal  balance of the Loan,  or (B)  deliver to Lender  such  additional  or
replacement  Eligible  Notes  Receivable,  and in  either  event  the  remaining
outstanding  principal  balance  of the Loan  must be equal to or less  than the
Availability.

                  (iii)  Ineligible  Financed  Note  Receivable.  If at any time
after the expiration of the Revolving  Period a Financed Note Receivable  ceases
to be an Eligible Note Receivable, Borrower shall, within five (5) Business Days
after receipt of written  notice from Lender,  at Lender's  election in its sole
and  absolute  discretion,  either (A) prepay the Loan in an amount equal to the
balance due under such Financed  Note  Receivable  multiplied by the  applicable
Availability Percentage, or (B) deliver to Lender one (1) or more Eligible Notes
Receivable  having  an  outstanding  aggregate  principal  balance  equal to the
outstanding principal balance of the Financed Note Receivable that has ceased to
be an  Eligible  Note  Receivable.  To  the  extent  the  outstanding  aggregate
principal  balance  of such new  Eligible  Note  Receivable(s)  is less than the
outstanding  principal  balance of the ineligible Note Receivable being replaced
hereunder,  Borrower shall deposit cash into the Collection Account in an amount
equal to the  deficiency.  To the extent  the  outstanding  aggregate  principal
balance(s)  of such new  Eligible  Note  Receivable  on such  date  exceeds  the
outstanding  principal  balance of the ineligible  Note Receivable on such date,
the  aggregate  outstanding  principal  balance(s)  of the new Eligible  Note(s)
Receivable  shall be deemed to be equal to the aggregate  outstanding  principal
balance  of the  ineligible  Note  Receivable  and  shall be  included  in total
Eligible  Notes  Receivable.  Upon any such  repayment  of the Loan  pursuant to
clause (A), or replacement  pursuant to (B), Lender shall execute an appropriate
Reassignment  and  take  all  reasonable  steps  necessary  to  release  related
Collateral, and the ineligible Note Receivable, and released Collateral shall be
returned to

                                      -20-
<PAGE>

Borrower;  provided,  however,  Borrower shall pay all Costs in connection  with
execution of such Reassignment and delivery of such Note Receivable.

                  (iv) Incomplete Custodial Files. With respect to each Advance,
the  Custodian  shall have received  originals of all Pledged  Documents and the
Collateral Assignments of Purchase Money Mortgages,  in the form attached hereto
as  Exhibit F (with only such  modifications  to such form as are  necessary  to
properly  identify  the  collateral  and to cause the  document  to be  properly
recorded),  covering all of the Pledged Documents to be pledged in relation with
such Advance;  provided that copies of the  recordable  Mortgages and recordable
Collateral  Assignment of Purchase Money  Mortgages  shall be complete  provided
that recorded  originals  are delivered to the Custodian  within sixty (60) days
after the Advance  date,  all in forms  approved by Lender and the Custodian has
delivered to Lender its monthly audit report  covering the files related to such
Pledged  Documents.  In the event such file is not deemed  complete within sixty
(60) days,  Borrower  shall have an  additional  thirty (30) days to deliver the
recorded Security  Instrument to such file or such additional time period as may
be  reasonably  necessary to cure such  deficiency  with respect to the recorded
Security  Instrument,  but in no event longer than a total time period of ninety
(90)  days.  In  the  event  the  recorded  original  of a  recordable  Security
Instrument  relating to a Financed Note  Receivable and original title insurance
policy relating  thereto have not been delivered to Custodian within such ninety
(90) day  period  after the  Advance  made with  respect to such  Financed  Note
Receivable  (as  evidenced  by an audit  report  prepared  by  Custodian),  such
Financed  Note  Receivable  shall cease being an Eligible  Note  Receivable  and
Borrower shall make any mandatory  prepayment of the  Receivables  Loan required
under Section 1.5(b)(i) or (ii), above, if any.

1.6 Commitment Fee. Borrower hereby agrees that by entering into this Agreement,
and  regardless  of  whether  Borrower  satisfies  the  conditions  set forth in
Schedule 1.1, the Commitment Fee has been fully earned by Lender. Borrower shall
pay to Lender the  Commitment  Fee (to the extent not paid by  Borrower  through
Lender's  application of Borrower's  good faith deposit  delivered to Lender) on
the earlier to occur of (i) thirty  (30) days after the date of this  Agreement,
or (ii) the date of the Initial Advance.

1.7 Receipt of Payments.  Borrower  shall use  reasonable  efforts to cause each
payment under this Agreement to be paid not later than 2:00 p.m. (New York time)
pursuant  to  Section  3 of  the  Lockbox  Agreement  on  the  day  when  due in
immediately  available  funds  into the  Collection  Account.  For  purposes  of
computing  interest and Fees and  determining  Availability  as of any date, all
payments  shall be deemed  received  on the  Business  Day on which  immediately
available  funds therefor are received in the  Collection  Account prior to 2:00
p.m.  New York time.  Payments  received  after  2:00 p.m.  New York time on any
Business Day or on a day that is not a Business Day shall be deemed to have been
received on the following Business Day.

1.8 Taxes.

            (a) Any and all  payments  by Borrower  hereunder  or under the Note
shall be made,  in  accordance  with  this  Section  1.8,  free and clear of and
without  deduction for any and all present or future Taxes. If Borrower shall be
required  by law to  deduct  any Taxes  from or in  respect  of any sum  payable
hereunder or under the Note, (i) the sum payable shall be increased

                                      -21-
<PAGE>

as much as shall be  necessary  so that  after  making all  required  deductions
(including  deductions  applicable to additional sums payable under this Section
1.8) Lender  receives an amount  equal to the sum it would have  received had no
such deductions been made, (ii) Borrower shall make such  deductions,  and (iii)
Borrower  shall pay the full  amount  deducted to the  relevant  taxing or other
authority in accordance  with  applicable  law. Within 30 days after the date of
any payment of Taxes,  Borrower shall furnish to Lender (upon  Lender's  written
request)  the  original  or a  certified  copy of a receipt  evidencing  payment
thereof.  Lender shall not be obligated to return or refund any amounts received
pursuant to this Section.

            (b) Borrower  hereby  indemnifies  and,  within 10 Business  Days of
demand  therefor,  shall pay Lender for the full amount of Taxes  (including any
Taxes  imposed by any  jurisdiction  on amounts  payable under this Section 1.8)
properly paid by Lender, and any liability  (including  penalties,  interest and
expenses due to Borrower's failure to pay such Taxes when due) arising therefrom
or with respect thereto.  If the Lender receives a refund of amounts paid by the
Lender and as to which it has been indemnified  hereunder,  the Lender agrees to
repay such refund to Borrower.

1.9 Single Loan. The Loan and all of the other  obligations of Borrower  arising
under this Agreement and the other Loan Documents  shall  constitute one general
obligation of Borrower secured by all of the Collateral.

1.10 Application of Advances.  In the event that any Costs,  including custodial
fees,  are unpaid at the time of any  Advance,  Lender may apply the proceeds of
the Advance to such Costs without notice to, or demand on, Borrower.

                                    ARTICLE 2

                                   COLLATERAL

2.1 Grant of Security  Interest.  To secure the payment and  performance  of the
Indebtedness,  Borrower  does hereby  unconditionally  and  irrevocably  assign,
convey,  grant,  hypothecate,  mortgage,  pledge and  transfer to Lender a first
priority  continuing  security interest and lien in and to the right,  title and
interest of Borrower in the following property of Borrower, whether now owned by
or owing to Borrower, or leased to or from Borrower, or hereafter acquired by or
arising in favor of Borrower and regardless of where located (collectively, with
the other  collateral  being  secured  by  operation  of the liens and  security
interests granted in the other Loan Documents, the "Collateral"):

            (a)  The  Financed  Notes  Receivable  and  all  other   Receivables
Transaction Documents related thereto;

            (b) The Purchase Documents;

            (c)  Upgraded  Notes   Receivable  which  are  also  Financed  Notes
Receivable;

            (d) All deposits, deposit accounts,  including,  without limitation,
the  Lockbox  Account  and  accounts   receivable,   escrow  accounts,   payment
intangibles,  general  intangibles  and other  receivables  arising  under or in
connection with the Pledged Documents, together with all

                                      -22-
<PAGE>

payments,  privileges and benefits arising out of the enforcement  thereof,  and
all funds held in any  deposit  accounts  related to any of the  Financed  Notes
Receivable  after  the  date of the  Advance  relating  to such  Financed  Notes
Receivable;

            (e) All  documents,  instruments,  pledged  assets and chattel paper
relating to the Pledged  Documents and the other properties and rights described
as Collateral herein;

            (f)  All  books,  records,  ledger  cards,  files,   correspondence,
computer  tapes,  disks and  software  relating to the Pledged  Documents or any
other Collateral described herein;

            (g) Except to the extent of any deposits  which do not relate to the
Financed Notes Receivable, all cash and other monies and property of Borrower in
the possession of Lender;

            (h) All proceeds, extensions,  amendments, additions,  improvements,
betterments, renewals, substitutions and replacements of the foregoing; and

            (i) Any and all after acquired right, title and interest of Borrower
in and to any property of the types described in the preceding clauses.

2.2 Security  Agreement.  This Agreement shall be deemed a security agreement as
defined in the Code, and the remedies for any violation of the covenants,  terms
and conditions of the agreements  herein contained shall be cumulative and be as
prescribed (a) herein, (b) by general law, (c) as to such part of the Collateral
which is also  reflected  in any  filed  financing  statement,  by the  specific
provisions of the Code now or hereafter  enacted,  all at Lender's sole election
and (d) by any other Loan Document.

                                    ARTICLE 3

                      INSURANCE, CONDEMNATION AND IMPOUNDS

3.1 Insurance. Borrower shall maintain insurance as follows:

            (a) Casualty;  Business  Interruption.  Borrower  shall use its best
efforts to cause the Association, at the Association's sole cost and expense, to
keep the Timeshare  Project insured against damage by fire and the other hazards
covered by a standard  extended  coverage and all-risk  insurance policy for the
full insurable value thereof on a replacement cost claim recovery basis (without
reduction  for  depreciation  or  co-insurance  and  without any  exclusions  or
reduction  of  policy   limits  for  acts  of   terrorism  or  other   specified
action/inaction),  and shall maintain  boiler and machinery  insurance,  acts of
terrorism  endorsement  coverage and such other casualty insurance as reasonably
required by Lender and agreed upon by  Borrower.  Lender  reserves  the right to
require from time to time the following  additional  insurance in its reasonable
discretion:  flood,  earthquake/sinkhole,   windstorm  and/or  building  law  or
ordinance. Borrower shall cause the Timeshare Project to be insured against loss
by flood if the  Timeshare  Project is located  currently  or at any time in the
future in an area identified by the Federal  Emergency  Management  Agency as an
area having  special  flood  hazards and in which flood  insurance has been made
available  under the National  Flood  Insurance Act of 1968,  the Flood Disaster
Protection  Act of 1973 or the National Flood  Insurance  Reform Act of 1994 (as
such acts may

                                      -23-
<PAGE>

from time to time be  amended)  in an amount at least equal to the lesser of (a)
the maximum  amount of the Loan or (b) the maximum  limit of coverage  available
under said acts. Any such flood  insurance  policy shall be issued in accordance
with  the  requirements  and  current   guidelines  of  the  Federal   Insurance
Administration.   Borrower   shall  not  maintain  any  separate  or  additional
insurance,  other than insurance required under the RFC Loan Documents, which is
contributing  in the event of loss  unless it is properly  endorsed  and (except
with  respect to  insurance  required  under the RFC Loan  Documents)  otherwise
satisfactory  to Lender in all  respects.  The  proceeds  of  insurance  paid on
account of any damage or  destruction to the Timeshare  Project  relating to any
Collateral  and  received  by Borrower  pursuant  to the terms of the  Timeshare
Declaration shall be applied as provided in Section 3.2.

            (b)  Liability.  Borrower  shall use its best  efforts  to cause the
Association  to  maintain,  at the  Association's  sole  cost  and  expense  (a)
commercial  general  liability  insurance with respect to the Timeshare  Project
providing for limits of liability of not less than $1,000,000 for both injury to
or death of a person  and for  property  damage  per  occurrence;  (b)  worker's
compensation  insurance to statutory limits, and employer's  liability insurance
covering  employees at the  Timeshare  Project  employed by Borrower or Property
Manager (to the extent required,  and in the amounts required by applicable laws
but  in  no  event  less  than  for  Employer's  Liability,   Bodily  Injury  by
Accident--$1,000,000  each  accident,  for Bodily Injury by  Disease--$1,000,000
policy limit and for Bodily Injury by  Disease--$1,000,000  each employee);  (c)
business interruption insurance, including use and occupancy, rental income loss
and extra expense,  against all periods covered by Borrower's property insurance
for a limit  equal to  twelve  (12)  calendar  months'  exposure;  (d)  employee
dishonesty,  and money and  securities  insurance  (inside and out),  depositors
forgery,  and  liability for guests'  property on a blanket  basis  covering all
employees of Borrower or Property  Manager who have access to or are responsible
for the handling of guest property or tenant security deposits,  in such amounts
as Lender shall require from time to time, but in no event less than $1,000,000;
(e) umbrella  liability on a following-form  basis with limits of $5,000,000 per
occurrence  and  annual  aggregate,   and  (f)  builder's  risk  insurance,   as
applicable,  in amounts and with coverages required by Lender. Borrower shall be
required  to  maintain  the  following   types  of  insurance,   which  must  be
satisfactory  to Lender and Borrower in all respects  (including  the deductible
and the amount of coverage):

                  (i) Liquor Liability Insurance;

                  (ii) Commercial General Liability Insurance;

                  (iii) Deleted;

                  (iv) Worker's Compensation Insurance;

                  (v) Employee Dishonesty; and

                  (vi) Automobile Insurance

            (c) Form and  Quality.  The  Borrower  shall use its best efforts to
cause the Association,  at the Association's sole cost and expense,  to maintain
the policies of  insurance  described on this Article 3 as in effect on the date
hereof or otherwise in form and amounts and

                                      -24-
<PAGE>

with insurers reasonably acceptable to Lender and Borrower; provided that in the
event the  Association  fails to  maintain  any  insurance  required  under this
Article 3 then Borrower, so long as Borrower controls the Association,  shall be
required to obtain and maintain such insurance.  All insurance policies shall be
endorsed  in form and  substance  acceptable  to  Lender  to name  Lender  as an
additional  insured,  loss payee or  mortgagee  thereunder.  All such  insurance
policies  and  endorsements  shall  be  fully  paid  for,  shall  be  issued  by
appropriately  licensed insurance companies with a rating of "A-:VIII" or better
as established by A.M. Best's Rating Guide, and shall be in such form, and shall
contain such provisions,  deductibles (with no increased  deductible for acts of
terrorism or other  specified  action/inaction)  and  expiration  dates,  as are
acceptable  to Lender and Borrower.  Notwithstanding  the  foregoing,  if market
conditions in the insurance  industry limit the Borrower's ability to obtain the
insurance  required  under this Section 3.1 on  commercially  reasonable  terms,
Lender  and  Borrower  shall in good  faith  cooperate  to select  insurers  and
coverages  reasonably  acceptable  to Lender and  Borrower.  Each  policy  shall
provide that such policy may not be canceled or materially  changed  except upon
(i)  providing  ten (10) days' prior  written  notice,  with respect to casualty
insurance coverage, and (ii) endeavoring to provide ten (10) days' prior written
notice,  with  respect  to  liability   insurance  coverage,   of  intention  of
non-renewal,  cancellation or material change to Lender and that no act or thing
done by  Borrower  shall  invalidate  any  policy as against  Lender;  provided,
however, that Borrower agrees to use commercially  reasonable efforts to require
the insurer to provide  thirty (30) days prior written  notice of  cancellation.
Blanket policies shall be permitted  provided that coverage will not be affected
by any loss on other  properties  covered by the policies.  If Borrower fails to
maintain  insurance in compliance  with this Section 3.1, Lender may obtain such
insurance and pay the premium therefor and Borrower shall, on demand,  reimburse
Lender for all expenses incurred in connection therewith.

            (d) Adjustments. Borrower shall give immediate written notice to the
insurance carrier and to Lender of any loss in respect to which a claim is being
made in excess of $50,000.00 or if the claim has a Material Adverse Effect.

3.2 Use and Application of Insurance Proceeds.  In the event that any portion of
the Facilities  subject to the Timeshare  Declaration should suffer any casualty
loss  covered  by hazard  insurance  or other  insurance,  upon  receipt  of any
insurance proceeds, the Association is required, during the time such properties
are covered by such  insurance,  under the Timeshare  Declaration  to rebuild or
repair the  damaged  portions  of all of the  buildings  and other  improvements
within the condominium  property described in the applicable Timeshare Documents
unless provided otherwise  pursuant to Article 14 of the Timeshare  Declaration.
In the event that any  proceeds of  insurance  are to be delivered to holders of
first  mortgage  liens  pursuant  to  Article 14 of the  Timeshare  Declaration,
Borrower  agrees  to  deliver  such  proceeds  relating  to the  Financed  Notes
Receivable to Lender to the extent received by Borrower.

3.3 Condemnation. Borrower shall immediately notify Lender of the institution of
any proceeding for the condemnation or other taking of the Timeshare  Project or
any portion thereof.  Notwithstanding anything to the contrary contained herein,
for so long as any condemned portion of the Timeshare Project are to be replaced
by the Association in accordance with the applicable Timeshare Declaration,  any
and all awards and payments arising from any condemnation or conveyances in lieu
thereof  relating to such portion of the Timeshare  Project shall be distributed
and used in accordance with the provisions of the Timeshare Declaration.

                                      -25-
<PAGE>

                                    ARTICLE 4

                         REPRESENTATIONS AND WARRANTIES

            To induce Lender to make the Loan,  the Borrower makes the following
representations  and  warranties to Lender,  each and all of which shall survive
the execution and delivery of this Agreement and, subject to such supplements as
are  permitted   pursuant  to  Section  6.2(k),   Borrower  covenants  that  the
representations  and  warranties  shall remain true and correct during all times
while the Loan is  outstanding  (except with respect to  organizational  changes
made in accordance with the terms of this Agreement), as follows:

4.1 Organization and Power.  Borrower and Guarantor are duly organized,  validly
existing and in good  standing  under the laws of the state of its  formation or
existence, and are in compliance with all legal requirements applicable to doing
business in the state in which the Timeshare Project is located. Borrower is not
a "foreign  person"  within the meaning of Section  1445(f)(3)  of the  Internal
Revenue Code. The  organizational  chart for Borrower in Schedule 4.1 accurately
reflects  the  ownership  structure of Borrower  and its  constituent  entities.
Borrower and Guarantor have only one state of  incorporation  or organization as
set  forth in  Schedule  4.1.  All  other  information  regarding  Borrower  and
Guarantor contained in Schedule 4.1 is true and correct as of the Closing Date.

4.2 Validity of Loan  Documents.  The  execution,  delivery and  performance  by
Borrower and Guarantor of the Loan Documents: (1) are duly authorized and do not
require the consent or  approval  of any other party or  governmental  authority
which has not been  obtained;  and (2) will not violate any law or result in the
imposition of any lien, charge or encumbrance upon the assets of any such party,
except as contemplated by the Loan Documents.  The Loan Documents constitute the
legal, valid and binding  obligations of Borrower and Guarantor,  as applicable,
enforceable in accordance  with their  respective  terms,  subject to applicable
bankruptcy,  insolvency,  or similar laws generally affecting the enforcement of
creditors' rights.

4.3 Liabilities; Litigation; Other Secured Transactions.

                  (i) The financial  statements and the notes therein  delivered
by Borrower and Guarantor are true and correct with no material  adverse  change
since the date of preparation.  Except as disclosed in such financial statements
and the notes therein, there are no fixed liabilities (or contingent liabilities
as required to be disclosed by GAAP) affecting the Timeshare  Project,  Borrower
or Guarantor  unless  otherwise  disclosed to Lender in compliance  with Section
12.1 of this Agreement. Except as disclosed in such financial statements and the
notes  therein,  or on Schedule 5.11 attached  hereto,  there is no  litigation,
administrative  proceeding,  investigation or other legal action  (including any
proceeding under any state or federal  bankruptcy or insolvency law) pending or,
to the  knowledge  of  Borrower,  threatened,  against  the  Timeshare  Project,
Borrower  or  Guarantor  which would  reasonably  be expected to have a Material
Adverse Effect.

                  (ii) Neither  Borrower nor Guarantor  nor Bluegreen  Vacations
Unlimited,  Inc.  is  contemplating  either the filing of a petition by it under
state or federal  bankruptcy or insolvency  laws or the  liquidation of all or a
major portion of its assets or

                                      -26-
<PAGE>

property,  and neither  Borrower nor Guarantor has actual knowledge of Big Cedar
LLC contemplating the filing of such a petition or any Person  contemplating the
filing of any such petition against Borrower or Guarantor.  For purposes of this
Section 4.3(ii) and the last sentence of Section 4.11, below, "actual knowledge"
of the Borrower or Guarantor  shall mean the actual  knowledge of the members of
the Borrower's  Management Committee appointed by Bluegreen Vacations Unlimited,
Inc.

                  (iii)  Borrower  has not within the last five (5) years become
bound  (whether as a result of a merger or otherwise) as a debtor under a pledge
or security  agreement entered into by another Person,  which has not heretofore
been terminated  except with respect to the RFC Loan Documents.  For purposes of
this Section 4.3(iii), a pledge or security agreement in respect of an equipment
lease shall be excluded.

4.4 Taxes and Assessments. There are no pending or, to Borrower's best knowledge
after  diligent  inquiry,  proposed,  special  or other  assessments  for public
improvements  or otherwise  affecting the Timeshare  Project,  nor are there any
contemplated  improvements  to the  Timeshare  Project  that may  result in such
special or other assessments.

4.5 Other Agreements; Defaults. Neither Borrower nor Guarantor is a party to any
agreement or instrument or subject to any court order,  injunction,  permit,  or
restriction  which  would  reasonably  be  expected  to have a Material  Adverse
Effect.  Neither  Borrower nor Guarantor is in violation of any agreement  which
violation would reasonably be expected to have a Material Adverse Effect.

4.6 Compliance with Law.

                  (i) Borrower has all requisite licenses, permits,  franchises,
qualifications,  certificates of occupancy or other governmental  authorizations
to own,  lease and operate  the  Timeshare  Project  and carry on its  business.
Guarantor has all requisite licenses, permits,  franchises,  qualifications,  or
other  governmental  authorizations  to carry  on its  business.  The  Timeshare
Project is in compliance with all applicable zoning,  subdivision,  building and
other legal requirements. All of the Timeshare Project's building systems are in
good working  order,  subject to ordinary wear and tear.  The Timeshare  Project
does not  constitute,  in whole or in part, a legally  non-conforming  use under
applicable legal requirements; and

                  (ii) No  condemnation  has been  commenced  or, to  Borrower's
knowledge,  is contemplated  with respect to all or any portion of the Timeshare
Project or for the  relocation  of roadways  providing  access to the  Timeshare
Project.

4.7  Location of  Borrower.  Borrower's  principal  place of business  and chief
executive  offices are located at the address stated in Section 12.1 and, except
as otherwise set forth in Schedule 4.1, Borrower at all times has maintained its
principal  place of business and chief  executive  office at such location or at
other locations within the same state.

4.8 ERISA.

                  (i) As of the  Closing  Date  and  throughout  the term of the
Loan, (a) Borrower is not and will not be an "employee  benefit plan" as defined
in Section 3(3) of the

                                      -27-
<PAGE>

Employee Retirement Income Security Act of 1974, as amended ("ERISA"),  which is
subject to Title I of ERISA,  and (b) the assets of Borrower do not and will not
constitute  "plan  assets" of one or more such plans for  purposes of Title I of
ERISA; and

                  (ii) As of the  Closing  Date and  throughout  the term of the
Loan (a)  Borrower  is not and  will not be a  "governmental  plan"  within  the
meaning of Section 3(3) of ERISA and (b)  transactions  by or with  Borrower are
not and will not be subject to state statutes  applicable to Borrower regulating
investments of and fiduciary obligations with respect to governmental plans.

4.9 Margin Stock. No part of proceeds of the Loan will be used for purchasing or
acquiring any "margin  stock" within the meaning of Regulations T, U or X of the
Board of Governors of the Federal Reserve System.

4.10 Tax Filings.  Borrower and Guarantor have filed (or have obtained effective
extensions for filing) all federal,  state and local tax returns  required to be
filed and have paid or made adequate  provision in accordance  with GAAP for the
payment of all federal,  state and local taxes,  charges and assessments payable
by Borrower and Guarantor, respectively.

4.11 Solvency.  Giving effect to the Loan, the fair saleable value of Borrower's
assets exceeds and will,  immediately  following the making of the Loan,  exceed
Borrower's  total  liabilities,  including,  without  limitation,  subordinated,
unliquidated,  disputed and contingent  liabilities.  The fair saleable value of
Borrower's assets is and will,  immediately following the making of the Loan, be
greater than Borrower's  probable  liabilities,  including the maximum amount of
its  contingent  liabilities  on its Debts as such  Debts  become  absolute  and
matured.  Borrower's assets do not and, immediately  following the making of the
Loan will not,  constitute  unreasonably small capital to carry out its business
as conducted or as proposed to be  conducted.  Borrower  does not intend to, and
does not believe that it will, incur Debts and liabilities (including contingent
liabilities and other commitments)  beyond its ability to pay such Debts as they
mature  (taking  into  account  the timing and amounts of cash to be received by
Borrower  and the  amounts to be payable  on or in  respect  of  obligations  of
Borrower).  Except as expressly disclosed to Lender in writing,  (a) no petition
in  bankruptcy  has been filed by or against  Borrower,  Guarantor  or Bluegreen
Vacations Unlimited,  Inc. or, to the actual knowledge of Borrower or Guarantor,
against  Big  Cedar,  L.L.C.,  in the last  seven  (7)  years,  and (b)  neither
Borrower,  nor Guarantor nor Bluegreen  Vacations  Unlimited,  Inc., nor, to the
actual knowledge of Borrower or Guarantor,  Big Cedar,  L.L.C.,  has made in the
last  seven  (7) years an  assignment  for the  benefit  of  creditors  or taken
advantage of any insolvency act for the benefit of debtors.

4.12 Full and Accurate Disclosure.  No statement of fact made by or on behalf of
Borrower or  Guarantor in this  Agreement or in any of the other Loan  Documents
contains any untrue  statement of a material fact or omits to state any material
fact necessary to make  statements  contained  herein or therein not misleading.
There is no fact  presently  known to Borrower  which has not been  disclosed to
Lender which could reasonably be expected to have a Material Adverse Effect. All
information  supplied by Borrower regarding any other Collateral is accurate and
complete in all material respects.

                                      -28-
<PAGE>

4.13 Contracts with Affiliates; Subordinated Indebtedness.

            (a) Subject to future changes to Borrower's  organization  structure
made in compliance  with Section 5.3 of this  Agreement,  Schedule 4.1 is a true
and complete  organizational  chart disclosing the ownership and relationship of
Borrower and the other Borrower Parties,  including any subsidiaries of Borrower
and any  Affiliates  of Borrower  that have any  involvement  or interest in the
Association,  the Timeshare  Project,  the  Amenities and the other  Facilities.
Disclosure  Schedule 4.13 discloses all agreements  between  Borrower and any of
its Affiliates with respect to the Timeshare Association, the Timeshare Project,
the Amenities and the other  Facilities  (as in effect on the Closing Date or as
supplemented  with the  consent of Lender,  the  "Approved  Transactions").  All
Approved   Transactions   were   negotiated  in  good  faith,   are  arms-length
transactions  and all terms,  covenants and conditions which govern the Approved
Transactions are at market rate.

            (b) The intercompany indebtedness for those of Borrower's Affiliates
described as "Due to Related  Parties" on Borrower's  balance sheet  constitutes
all Borrower's debts,  liabilities and obligations to any Affiliates of Borrower
except for the Approved Transactions and for salaries and other compensation due
officers  and  directors as of the date of this  Agreement.  Other than the Tour
Agreement  and item 19 set  forth in  Disclosure  Schedule  4.13,  Borrower  has
provided  copies of all  instruments,  agreements and other writings  evidencing
and/or  securing any of the foregoing  intercompany  debt to Lender for Lender's
approval.  Borrower  agrees  that all of such  indebtedness  shall be  expressly
subordinated to the Loan and shall be shown on Borrower's  financial  statements
and notes thereto as subordinated obligations. If an Event of Default shall have
occurred and is continuing  or a Potential  Default  exists,  Borrower will not,
directly  or  indirectly,  (i) permit  any  payment to be made in respect of any
intercompany indebtedness,  liabilities or obligations, direct or contingent, to
any  Affiliate  other  than  Guarantor  or to members of  Borrower  as  required
pursuant to its operating  agreement,  which payments (i.e., other than payments
to  Guarantor  or members of  Borrower as  required  pursuant  to its  operating
agreement)  shall be and are hereby made subordinate to the payment of principal
of,  and  interest  on,  the Note and the other  Indebtedness,  (ii)  permit the
amendment,  rescission or other  modification  of any of Borrower's  obligations
with respect to intercompany  indebtedness other than in respect of Guarantor or
members of Borrower, or (iii) incur additional  intercompany  indebtedness other
than in respect of Guarantor or members of Borrower.

4.14  Intellectual  Property.  As of the  Closing  Date,  each of  Borrower  and
Guarantor  owns or has  rights to use all  intellectual  property  necessary  to
continue  to  conduct  its  business  as now or  heretofore  conducted  by it or
proposed to be  conducted  by it. Each of Borrower  and  Guarantor  conducts its
business  and  affairs  without   infringement  of  or  interference   with  any
intellectual  property  of any other  Person in any  material  respect.  Neither
Borrower nor Guarantor  has actual  knowledge of any  infringement  claim by any
other Person with  respect to any  intellectual  property.  For purposes of this
Section 4.14, intellectual property shall mean copyrights,  licenses, trademarks
or tradenames used in the ordinary course of Borrower's business.

4.15 Title;  Prior Liens.  Borrower has good and marketable  title to the Resort
Accommodations and the Resort  Accommodations are free and clear of Liens except
for Timeshare  Interests  previously sold in such Resort  Accommodations and the
Lien of taxes not yet due and the obligations and restrictions arising under the
Timeshare Documents and

                                      -29-
<PAGE>

Permitted  Exceptions.  Borrower  is not in default  under any of the  Timeshare
Documents or under any other  document  evidencing or securing any  indebtedness
which is secured, wholly or in part, by the Resort Accommodations,  and no event
has occurred which with the giving of notice, the passage of time or both, would
constitute a default  under any of the  Timeshare  Documents or under any of the
documents evidencing or securing any such indebtedness.

4.16 Intentionally Deleted.

4.17 Eligible Notes.  Each Financed Note Receivable and Upgraded Note Receivable
constitutes an Eligible Note Receivable,  and Borrower is not aware of any facts
or  information  which would cause such  Financed Note  Receivable  not to be an
Eligible Note Receivable hereunder.

4.18 Intentionally Deleted.

4.19 Representations as to the Association.

            (a) Other Required Licenses and Permits.  The Association  possesses
all material  requisite  franchises,  certificates of convenience and necessity,
operating  rights,  licenses,  permits,  consents,  authorizations,  exemptions,
orders and  approvals  as are  necessary  to carry on its  business as now being
conducted  including  without  limitation  to manage,  maintain  and operate the
Timeshare  Project,  the  Association  and in  accordance  with  all  applicable
Governmental Regulations.

            (b) Access.  All roadways,  if any, inside the Timeshare Project are
either  common  areas under the  Timeshare  Declaration  or areas over which the
Purchasers  of  Timeshare  Interests  have  access  by  easements  held  by such
Purchasers or by the Association.

            (c) Utilities.  Electric,  gas,  sewer,  water  facilities and other
necessary utilities are lawfully available in sufficient capacity to service the
Timeshare Project and any easements  necessary to the furnishing of such utility
service have been obtained and duly recorded. Water and utility charges relating
to the Timeshare Project have been timely paid when due.

            (d)  Amenities.  All  Amenities  described  as then being  currently
available to Purchasers in any  applicable  Public  Reports are completed or, if
necessary,  a bond or other  financial  assurance  acceptable to the  regulatory
authority  having  jurisdiction  over the  offering of the  Timeshare  Interests
insuring the  completion  of the  Amenities has been posted or provided for. The
Amenities include those listed in the applicable Public Reports.  Each Purchaser
of a  Timeshare  Interest  has  access  to and the  use of all of the  completed
Amenities  of  the  Timeshare  Project  as and to  the  extent  provided  in the
Timeshare Documents.

            (e) Intentionally Deleted.

            (f) Compliance with Timeshare  Documents.  To the best of Borrower's
knowledge  after  due  inquiry,  the  Association  is not in  default  under the
Timeshare Documents and no event has occurred which, with the passage of time or
the giving of notice would become a material  default by the  Association  under
the Timeshare Documents.

                                      -30-
<PAGE>

            (g)  Construction.  All costs arising from the  construction  of any
improvements and the purchase of any equipment, inventory, or Common Furnishings
located  in or on the  Timeshare  Project  have been  paid or are being  paid in
accordance with the purchase or loan documents in connection therewith.

4.20 Operating Contracts. Except for the Tour Agreement,  Borrower has delivered
to Lender true,  correct and complete  copies of the Operating  Contracts  (with
confidential  financial  terms  redacted  in certain  instances  as  approved in
advance by Lender), including all exhibits,  schedules and attachments.  Each of
the Operating  Contracts is in full force and effect.  To the best of Borrower's
knowledge  after  due  inquiry,  Borrower  is not in  default  under  any of the
Operating  Contracts to which it is a party, and Borrower knows of no default on
the part of any other party to any of the Operating Contracts.

4.21 Consumer Law Matters.  The Notes  Receivable  were originated and have been
serviced in compliance with, and do not contravene any Consumer Laws.

                                    ARTICLE 5

                                    COVENANTS

            To induce Lender to make the Loan,  the Borrower makes the following
covenants  for Lender,  each and all of which shall  survive the  execution  and
delivery of this Agreement and Borrower covenants while the Loan is outstanding,
as follows:

5.1 Due on Sale and  Encumbrance;  Transfers  of  Interests.  Without  the prior
written consent of Lender, which consent shall not be unreasonably withheld, and
subject to the provisions of Section 1.5(a)(i):

                  (i)  no  Transfer  shall  occur  or be  permitted,  nor  shall
Borrower  enter  into  any  easement,  declaration  of  covenant,  condition  or
restriction,  public or private dedication or other agreement granting rights in
or  restricting  the use or development  of the Timeshare  Project,  which has a
Material Adverse Effect; and

                  (ii) no Transfer  shall occur or be permitted  which would (a)
cause Guarantor or an Affiliate  thereof to own less than (i) fifty-one  percent
(51%) of the beneficial  interest in Borrower or (ii) one hundred percent (100%)
of the ownership interests in Bluegreen Vacations Unlimited, Inc., or (b) result
in a new member  having the ability to control  the  affairs of  Borrower  being
admitted to or created in Borrower (or result in any existing controlling member
withdrawing from Borrower).

            As used in this  Agreement,  "Transfer"  shall  mean any  direct  or
indirect sale, transfer,  conveyance,  installment sale, master lease, mortgage,
pledge, encumbrance, grant of Lien or other interest, license, lease, alienation
or assignment,  whether  voluntary or involuntary,  of all or any portion of the
direct or indirect legal or beneficial  ownership of, or any interest in (a) the
Timeshare  Project  or any part  thereof,  including  any  Intangible  Assets of
Borrower in connection  with the Timeshare  Project,  Operating  Contracts,  and
rights under the Timeshare Declaration, or (b) Borrower, including any agreement
to transfer or cede to another Person any voting, management or approval rights,
or any other rights, appurtenant to any such legal or

                                      -31-
<PAGE>

beneficial ownership or other interest.  "Transfer" is specifically  intended to
include any pledge or  assignment,  directly  or  indirectly,  of a  controlling
interest in Borrower or its controlling  limited  partner or controlling  member
for purposes of securing so-called  "mezzanine"  indebtedness.  "Transfer" shall
not  include  (i) the sale of  Timeshare  Interests  in the  ordinary  course of
Borrower's business so long as Borrower complies with the provisions of the Loan
Documents  relating to such sales; or (ii) the transfer of  non-managing  member
interests in Borrower so long as the transfer does not violate the provisions of
Section 5.1(ii), and does not violate the provisions of Article 10.

            Without limiting the foregoing, Borrower further agrees that it will
require  each Person that  proposes to become a partner,  member or  shareholder
(each such Person,  an "Interest  Holder") in Borrower after the Closing Date to
sign and deliver to Borrower,  within  thirty (30) days after such transfer (and
Borrower shall deliver to Lender promptly after receipt), a certificate executed
by  a  duly   authorized   officer  of  the  new  Interest   Holder   containing
representations,   warranties  and  covenants  substantially  the  same  as  the
representations,  warranties  and  covenants  provided by Borrower in Article 10
hereof.

5.2 Taxes;  Charges. At any time that Borrower is in control of the Association,
Borrower shall pay or use reasonable  efforts to cause to be paid, to the extent
funds are  generally  available  to the  Association  or  pursuant  to a special
assessment required by the Association,  before any fine,  penalty,  interest or
cost may be added thereto,  and shall not enter into any agreement to defer, any
real  estate  taxes and  assessments,  franchise  taxes and  charges,  and other
governmental charges that may become a Lien upon the Timeshare Project or become
payable  during  the  term of the Loan and will  promptly  furnish  Lender  with
evidence of such  payment  upon the written  request of Lender.  Borrower or the
Association, to the extent that Borrower is in control of the Association, shall
not consent to the joint assessment of the Timeshare Project with any other real
property  constituting  a separate  tax lot or with any other  real or  personal
property and if the foregoing  occurs,  shall use reasonable  efforts to contest
such joint  assessment.  Borrower  shall pay when due all claims and  demands of
mechanics,  materialmen, laborers and others which, if unpaid, might result in a
Lien on any Financed Note Receivable or security therefor; however, Borrower may
contest  the  validity  of such  claims  and  demands  so long  as  Borrower  is
diligently  contesting the same by appropriate  legal  proceedings in good faith
and at its own expense and concludes  such contest prior to the tenth (10th) day
preceding the earlier to occur of the  Revolving  Loan Maturity Date or the date
on which the Timeshare Project is scheduled to be sold for non-payment.

5.3 Control;  Management.  Without the prior  written  consent of Lender,  there
shall be no change in the day-to-day control and management of Borrower,  and no
change in their  respective  organizational  documents  relating to control over
Borrower  and/or the Timeshare  Project which changes may reasonably be expected
to have a Material Adverse Effect.  Whether or not Lender's approval is required
hereunder,  Borrower shall  promptly  notify Lender in writing of any changes to
the  organizational  documents  of  Borrower,  or any  change to the  Borrower's
management  committee.  At  any  time  while  Borrower  is  in  control  of  the
Association,  Borrower  shall not  terminate,  replace or appoint  any  Property
Manager or terminate  the  Management  Agreement  for the  Timeshare  Project or
consent  to any of the  foregoing  by  another  party,  including  RFC,  without
Lender's  prior  written  approval  which  consent  shall  not  be  unreasonably
withheld,  or amend the Management Agreement in a manner which may reasonably be
expected to have a

                                      -32-
<PAGE>

Material  Adverse  Effect.  Any change in  ownership  or control of the Property
Manager  shall be cause for Lender to re-approve  such Property  Manager and the
Management  Agreement,  unless,  provided that no Event of Default exists,  such
change in ownership  or control  results in ownership or control by an Affiliate
of Borrower or Bluegreen Vacations  Unlimited,  Inc. Each Property Manager shall
hold and maintain all material  necessary  licenses,  certifications and permits
required by law.  Borrower  shall fully  perform all of its material  covenants,
agreements and obligations under the Management Agreement.

5.4 Operation;  Maintenance;  Inspection. Borrower shall observe and comply with
all legal requirements applicable to its existence and to the ownership, use and
operation of the Timeshare  Project.  Borrower  shall  maintain,  or, so long as
Borrower  is in control  of the  Association,  shall  cause the  Association  to
maintain,  the  Timeshare  Project  in good  condition  (ordinary  wear and tear
excepted)  and  promptly  repair any damage or casualty in  accordance  with the
Timeshare Declaration.  Borrower shall not, without the prior written consent of
Lender which shall not be unreasonably withheld, undertake any alteration of the
Timeshare Project which may result in a Material Adverse Effect or permit any of
the fixtures or personalty owned by Borrower and utilized in connection with the
operation of the Timeshare  Project to be removed at any time from the Timeshare
Project,  unless the removed item is removed  temporarily  for  maintenance  and
repair or, if removed permanently,  is obsolete and is replaced by an article of
equal or better suitability and value. Subject to the Timeshare  Documents,  any
Governmental Requirements and the provisions of the RFC Loan Documents, Borrower
shall permit or cause to be permitted Lender and its agents, representatives and
employees,  upon reasonable  prior notice to Borrower,  to inspect the Timeshare
Project and conduct such  environmental  and  engineering  studies as Lender may
require  (at  Lender's  sole cost and  expense  unless an Event of  Default  has
occurred),  provided such  inspections  and studies do not materially  interfere
with the use and operation of the Timeshare Project.

5.5  Taxes  on  Security.   Borrower  shall  pay  all  taxes,  charges,  filing,
registration and recording fees,  excises and levies payable with respect to the
Note or the Liens created or secured by the Loan  Documents,  other than income,
franchise and doing business taxes imposed on Lender.  If there shall be enacted
any law  applicable  to the Pledged  Documents  (1)  deducting the Loan from the
value of the  Timeshare  Project for the purpose of taxation,  (2) affecting any
Lien on the  Timeshare  Project,  or (3) changing  existing  laws of taxation of
mortgages, deeds of trust, security deeds, or debts secured by real property, or
changing the manner of collecting any such taxes, Borrower shall promptly pay to
Lender,  on demand,  all taxes,  costs and charges for which Lender is or may be
liable  as  a  result  thereof.  If  Borrower  pays  any  such  tax  and  Lender
subsequently  receives  a refund  or  reimbursement  of such tax,  Lender  shall
promptly deliver such refund or  reimbursement to Borrower  provided no Event of
Default exists.

5.6 Legal Existence;  Name, Etc.  Borrower and Guarantor shall preserve and keep
in full  force  and  effect  its  respective  entity  status,  and its  material
franchises,  rights and privileges under the laws of the state of its respective
formation, and all material  qualifications,  licenses and permits applicable to
the ownership,  use and operation of the Timeshare Project. Except in accordance
with  Section  5.1 of this  Agreement,  Borrower  shall not wind up,  liquidate,
dissolve,  reorganize,  merge,  or  consolidate  with or into, or convey,  sell,
assign, transfer, lease, or otherwise dispose of all or substantially all of its
assets, or acquire all or substantially all of the assets of the business of any
Person, or permit any subsidiary or Affiliate of Borrower to do so.

                                      -33-
<PAGE>

Without limiting the foregoing,  Borrower shall not  reincorporate or reorganize
itself under the laws of any  jurisdiction  other than the jurisdiction in which
it is incorporated  or organized as of the Closing Date.  Borrower shall conduct
business  only  in its own  name  and  shall  not  change  its  name,  identity,
organizational  structure,  state of  formation  or the  location  of its  chief
executive  office or principal  place of business unless Borrower (1) shall have
obtained  the  prior  written  consent  of  Lender  to  such  change,  not to be
unreasonably  withheld,  and (2) shall  have  taken  all  actions  necessary  or
requested by Lender to file or amend any  financing  statement  or  continuation
statement  to assure  perfection  and  continuation  of  perfection  of security
interests under the Loan Documents.  Borrower shall maintain its separateness as
an entity,  including  maintaining  separate  books,  records,  and accounts and
observing corporate and partnership formalities independent of any other entity,
shall pay its  obligations  with its own funds and shall not commingle  funds or
assets with those of any other entity; provided however that the foregoing shall
not preclude Borrower and Guarantor from consolidating its financial  statements
in accordance with GAAP.

5.7 Affiliate Transactions.  Without the prior written consent of Lender, not to
be unreasonably  withheld,  and except for the Approved  Transactions,  Borrower
shall not engage in any  transaction  affecting  the  Timeshare  Project with an
Affiliate of Borrower or of any Borrower Party (other than Guarantor);  provided
however that the foregoing shall not prohibit  Affiliates entering into Purchase
Documents in good faith and pursuant to a bona fide  transaction in an aggregate
amount not to exceed $100,000.00.

5.8 Further  Assurances.  Borrower  shall  promptly  (1) cure any defects in the
execution and delivery of the Loan  Documents,  and (2) execute and deliver,  or
cause to be executed and  delivered,  all such other  documents,  agreements and
instruments,  including  without  limitation new Notes, as Lender may reasonably
request to further evidence and more fully describe the Collateral for the Loan,
to (i) correct any omissions in the Loan  Documents,  (ii)  perfect,  protect or
preserve any Liens  created under any of the Loan  Documents,  (iii) to make any
recordings,  file any notices,  or obtain any  consents,  as may be necessary or
appropriate in connection  therewith or (iv) to effectuate Loan  Outplacement or
Loan rearrangement as set forth in Section 12.10 of this Agreement.

5.9  Estoppel  Certificates.  Borrower,  within  ten (10)  Business  Days  after
request, shall furnish to Lender a written statement in the form attached hereto
as Exhibit C, duly  acknowledged,  setting forth the amount due on the Loan, the
terms of payment of the Loan, the date to which interest has been paid,  whether
any offsets or defenses exist against the Loan and, if any are alleged to exist,
the nature  thereof in detail,  and such other matters as Lender  reasonably may
request,  provided,  however, that such request shall not be made more than once
per calendar quarter.

5.10 Notice of Certain Events.  Borrower shall promptly notify Lender of (1) any
Potential Default or Event of Default, together with a detailed statement of the
steps being taken to cure such  Potential  Default or Event of Default;  (2) any
notice of material default received by Borrower under other obligations relating
to the Association or the Timeshare Project or otherwise  material to Borrower's
business;  and (3) any claim, action or threatened or pending legal, judicial or
regulatory   proceedings,   including  any  dispute  between  Borrower  and  any
Governmental  Authority,  which are deemed  reasonably  possible  (as defined by
GAAP)

                                      -34-
<PAGE>

of having a Material  Adverse  Effect other than personal  injury claims arising
from the Timeshare Project not in excess of $1,000,000.00.

5.11 Indemnification.  Borrower shall indemnify, defend and hold Lender harmless
from and against any and all losses,  liabilities,  claims,  damages,  expenses,
obligations,  penalties,  actions,  judgments,  suits,  costs and  disbursements
(including the reasonable fees and actual  expenses of Lender's  counsel) of any
kind or nature whatsoever,  including those arising from the joint,  concurrent,
or comparative negligence of Lender (except to the extent such joint, concurrent
or comparative  negligence constitutes gross negligence or willful misconduct on
the part of Lender), in connection with (1) any inspection, review or testing of
or with  respect  to the  Timeshare  Project  required  to be taken by reason of
circumstances  arising  under this  Section 5.11 for which Lender is entitled to
indemnification  hereunder,  (2) any investigative,  administrative,  mediation,
arbitration, or judicial proceeding, whether or not Lender is designated a party
thereto,  commenced or threatened at any time (including  after the repayment of
the Loan) in any way related to the  execution,  delivery or  performance of any
Loan Document or to the Timeshare Project, (3) any proceeding  instituted by any
Person  claiming a Lien, (4) any brokerage  commissions or finder's fees claimed
by any broker or other party in connection with the Loan, the Timeshare Project,
or any of the transactions contemplated in the Loan Documents, (5) the violation
by  Borrower or the  Servicer of  Governmental  Requirements  including  without
limitation,  the Environmental Laws,  Consumer Laws,  Interstate Land Sales Act,
Patriot Act or the Timeshare  Act) (whether such law or violation is material or
not and whether or not Lender is aware of such violation or makes Advances while
such  violation  exists),  (6) any claim by any Person  other than  Lender  with
respect to the  Collateral,  (7) any action taken by or on behalf of Borrower or
Guarantor  relating to any Financed Note Receivable which is not permitted by or
pursuant to the terms of this Agreement or which is taken by Lender  pursuant to
Section  8.3 of this  Agreement,  and/or  (8) any act or  omission  constituting
negligence or willful  misconduct,  or breach of fiduciary  duty by any officer,
director,   agent  or  employee  of  Guarantor  in  connection  with  Borrower's
performance under the Servicing  Agreement except to the extent that any of such
losses in connection with any of the individual  circumstances  set forth in the
foregoing  clauses  (1)-(8) are caused by Lender's  gross  negligence or willful
misconduct.  Borrower shall promptly  notify Lender of (A) any claim,  action or
proceeding  affecting  the  Association,  the Timeshare  Project,  the Timeshare
Property,  the Amenities or the Collateral,  or any part thereof,  or any of the
security  interests  granted  hereunder  which is reasonably  expected to have a
Material  Adverse  Effect (it being  agreed  that such  disclosure  shall not be
deemed to be an  amendment  of  Disclosure  Schedule  5.11  unless  agreed to in
writing by Lender), and (B) any action, suit, proceeding, order or injunction of
which Borrower becomes aware after the date hereof pending or threatened against
or affecting  Guarantor or any Affiliate thereof which is reasonably expected to
have a Material Adverse Effect.

5.12  Application  of  Loan  Proceeds/Operating  Revenues.  Borrower  shall  not
misappropriate  funds derived from the Loan or the  Collateral  and shall at all
times apply any proceeds of the Loan and the  Collateral as required  under this
Agreement and the other Loan Documents.

5.13 Compliance  with Laws.  Borrower shall timely comply with, and, for so long
as Borrower shall control the Association  shall cause the Association to comply
with all material laws and any notice or claim by any Governmental Authority, or
by any other party to such

                                      -35-
<PAGE>

indenture, order, instrument, agreement or Timeshare Document, pertaining to the
Borrower, the Resort Accommodations, the Association, the Timeshare Project, the
Timeshare Plan and the Facilities.  Sales of Timeshare Interests are, and during
the Term shall be, made by only persons who hold all required  licenses,  or who
are  exempt  from  licensure  and are made in  compliance  with  all  applicable
material Governmental Requirements. The Borrower, the Resort Accommodations with
respect to which Timeshare Interests are being sold, the Timeshare Project,  the
Timeshare Plan, and the Facilities comply with,  conform to and obey, and during
the term of the Loan shall  continue to comply  with,  conform to and obey,  all
material  Governmental  Requirements  applicable  to the  Borrower,  such Resort
Accommodations,  the Timeshare Project,  the Timeshare Plan and Facilities,  and
each indenture, order, instrument,  agreement or document to which Borrower is a
party or by which it is bound.

5.14  Litigation  and  Proceeding.  Borrower shall (i) at the request of Lender,
appear in and defend,  at  Borrower's  expense,  any claim naming Lender and any
other  material  claim,  action or proceeding  pertaining  to the Borrower,  the
Resort  Accommodations,  the  Timeshare  Project,  the  Timeshare  Plan  and the
Facilities;  and (ii) 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.

5.15 Collateral.

            (a) Title.  Borrower  has,  and  during  the term of the Loan,  will
continue to have, good and marketable title to the Collateral, free and clear of
any Lien  except for (i) the  security  interest  created by this  Agreement  or
otherwise created in favor of Lender, and (ii) the Permitted  Exceptions.  There
are no facts,  circumstances  or conditions known to any Borrower Party that may
result in any Liens  (including  Liens arising under  Environmental  Laws) other
than Permitted Exceptions. No financing statement or other instrument similar in
effect  covering all or any part of the  Collateral  is on file in any recording
office,  except such as may have been filed in favor of,  Borrower and are being
assigned to Lender.

            (b) No Modification.  Borrower shall not take any action (nor permit
or consent to the taking of any action) which might reasonably be anticipated to
impair  the  value of the  Collateral  or any of the  rights  of  Lender  in the
Collateral.  Borrower shall not (i) modify or amend any of the Pledged Documents
without  Lender's prior written consent (except that Borrower may modify Pledged
Documents  to comply  with the  Servicemembers  Civil  Relief  Act and up to one
percent (1%) of other Pledged  Documents in the aggregate during the term of the
Loan without Lender's consent),  or (ii) solicit prepayment of, grant extensions
of time for the payment of (except as permitted in (i) above) or compromise  for
less than the full face value,  release in whole or in part any Purchaser liable
for the payment of, or allow any credit whatsoever except for the amount of cash
to be paid upon, any Collateral or any instrument or document  representing  the
Collateral except as provided in Section 5.15(c) hereof.

            (c) Upgraded Notes  Receivable.  The  provisions of Section  5.15(b)
hereof  notwithstanding,  Borrower may engage in upgrade  sales and shall either
replace the affected Financed Notes Receivable with Upgraded Notes Receivable or
repay the Loan by the  applicable  portion of the Loan which is  outstanding  in
respect of the affected Financed Notes Receivable, provided, however, that after
the expiration of the Revolving Period, the Borrower's replacement

                                      -36-
<PAGE>

or repayment shall be at Lender's option but no such repayment shall  constitute
a voluntary  prepayment for purposes of Section 1.5(a) of this  Agreement.  Upon
the closing of the  upgraded  sale,  the prior Note  Receivable  shall be deemed
"ineligible."  Borrower shall remove the prior Financed Note Receivable from all
financial  reports  delivered by Borrower to Lender  pursuant to this Agreement.
Upon the  replacement  of the Financed  Note  Receivable  with an Upgraded  Note
Receivable,  all subsequent requests for Advances shall be calculated to reflect
the  Upgraded  Note   Receivable   and  Lender  shall  execute  an   appropriate
Reassignment and take all reasonable steps to release the related Collateral and
the  ineligible  Note  Receivable  and related  Collateral  shall be returned to
Borrower;  provided,  however, Borrower shall pay all of Lender's Fees and Costs
in  connection  with  execution of such  Reassignment  and delivery of such Note
Receivable and related Collateral. For the avoidance of doubt, there shall be no
updated FICO  requirement to the extent that affected  Financed Notes Receivable
are replaced with the applicable Upgraded Notes Receivable.

5.16 Sale of  Collateral;  Proceeds.  Immediately  upon  Borrower's  receipt  of
proceeds from the sale of any of the  Collateral  (excluding  sale proceeds from
any  Collateral  which  has been  released  by Lender  in  accordance  with this
Agreement), Borrower shall deliver proceeds in an amount equal to the applicable
portion of the Loan which is  outstanding  with  respect to such  Collateral  to
Lender in their  original form and,  pending  delivery to Lender,  Borrower will
hold  such  proceeds  as agent for  Lender  and in trust  for  Lender.  Payments
received by Borrower  directly  from any  Purchaser  shall be  delivered  to the
Lockbox Agent within one (1) Business Day.

5.17 Intentionally Deleted.

5.18  Performance  of  Operating  Contracts.  Borrower  agrees  to  perform  and
discharge its obligations,  covenants and agreements  contained in the Operating
Contracts  except where such  failure to perform or  discharge  would not have a
Material  Adverse  Effect;  to give prompt notice to the Lender of any notice of
default  (whether  oral or written)  either  given or received by Borrower  with
respect thereto,  together with a complete copy of any such notice,  if written,
if such default could  reasonably be expected to have a Material  Adverse Effect
or result in termination of such Operating Contract. Borrower will not (i) amend
or modify  any of the  Operating  Contracts  or  surrender  or  cancel  any such
Operating Contract to the extent such amendment or modification could reasonably
be expected to have a Material  Adverse Effect,  or (ii) further encumber any of
them without the prior  written  consent of Lender,  which  consent shall not be
unreasonably  withheld;  or (iii) consent to any assignment thereof by the other
contract parties;  provided,  however,  that in no event shall Borrower amend or
modify an  Operating  Contract  in a manner  which would  violate the  Timeshare
Documents.

5.19 Servicing of Financed Notes  Receivable.  Borrower shall cause the Financed
Notes Receivable to be serviced pursuant to a Servicing Agreement and a Servicer
satisfactory  to  Lender  in its  sole  discretion.  In the  event  Borrower  or
Guarantor is the  Servicer,  Lender shall have the right to replace  Borrower or
Guarantor with a new Servicer in its sole discretion,  upon the occurrence of an
Event of Default.  All reasonable  servicing fees, and the reasonable  costs and
expenses of the Servicer,  shall be paid by Borrower.  Borrower shall not amend,
modify or make any other  alteration  to, or  consent to any  termination  of or
terminate the Servicing  Agreement  without the prior written consent of Lender,
which  consent may be withheld by

                                      -37-
<PAGE>

Lender in  Lender's  sole  discretion.  Borrower  shall not  interfere  with the
Servicer's  performance of its duties under the Servicing  Agreement or take any
action  that would be  inconsistent  in any way with the terms of the  Servicing
Agreement.

5.20 Custodian. Lender shall have the right at any time to utilize a third-party
Custodian  to  maintain  custody  of the  Collateral,  pursuant  to a  Custodial
Agreement  satisfactory  to  Lender  in  its  sole  discretion.  All  reasonable
custodial fees, and the reasonable costs and expenses of the Custodian, shall be
paid by Borrower.  Borrower shall not amend, modify or make any other alteration
to, or  consent to any  termination  of or  terminate  the  Custodial  Agreement
without the prior  written  consent of Lender,  which consent may be withheld by
Lender in  Lender's  sole  discretion.  Borrower  shall not  interfere  with the
Custodian's  performance of its duties under the Custodial Agreement or take any
action  that would be  inconsistent  in any way with the terms of the  Custodial
Agreement.

5.21 Maintenance. To the extent that the Association controls all or any portion
of the Facilities and, further, that Borrower controls the Association, Borrower
shall cause the Association to maintain each portion of the Facilities under its
responsibility  in good repair,  working order and condition  (ordinary wear and
tear excepted) and shall make or cause to be made all necessary  replacements to
such Facilities.  To the extent that any Amenities are provided by a third party
pursuant to an  agreement  between the  Association  and such third  party,  the
Borrower shall, to the extent it controls the Association, cause the Association
to maintain such agreement in full force and effect.

5.22 Records. Borrower shall keep its books and records in accordance with GAAP.
So long as Borrower is in control of the  Association,  Borrower shall cause the
Association to keep books and records  reflecting all financial  transactions of
the Association,  including  billing and collection of dues and assessments from
its members and any payments in lieu thereof by Borrower  under the terms of any
subsidy  agreement  between  Borrower  and the  Association,  in which  complete
entries will be made in accordance with GAAP.

5.23 Other Documents.  Borrower or Servicer will maintain  accurate and complete
files in electronic  form relating to the Financed  Notes  Receivable  and other
Collateral to the satisfaction of Lender,  and such files will contain copies of
each  Financed  Note  Receivable  together  with the  purchase  agreements,  any
disclosure or notice required by law including  Consumer Laws and the consumer's
credit  application  and all other relevant  credit  memoranda,  if any, and all
applicable collection  information and correspondence  relating to such Financed
Notes Receivable and the notice required pursuant to Section 5.25, below.

5.24  Inspections and Audits.  Borrower shall cause, or if Borrower is no longer
in  control  of the  Association,  shall  use its  best  efforts  to  cause  the
Association to, at reasonable times during normal business hours and as often as
may be requested,  permit any agents or representatives of Lender to inspect the
Timeshare  Project  and  the  other  Facilities  and  any of  Borrower's  assets
(including  financial and  accounting  books and  records),  to examine and make
copies of and abstracts from the books and records of Borrower, the Association,
and any servicer under any Servicing Agreement,  and to discuss any such party's
affairs,  finances  and  accounts  with  any  of  its  officers,   employees  or
independent  public  accountants.  If an Event of Default  has  occurred  and is
continuing  or if access is necessary to preserve or protect the  Collateral  as
determined by

                                      -38-
<PAGE>

Lender,  Borrower  shall,  or if  Borrower  is  no  longer  in  control  of  the
Association  shall use its best efforts to, provide such access at all times and
without advance notice.  Borrower acknowledges that Lender intends to conduct or
cause to be conducted  such audits and  inspections on at least an annual basis.
Lender  acknowledges  that the  foregoing  covenants  in this  Section  5.24 are
subject to the Timeshare Documents and Governmental Requirements. Subject to the
Confidentiality  Agreement,  Borrower  shall make available to Lender all credit
information in Borrower's possession or under Borrower's control with respect to
Purchasers  as Lender  may  request.  All  inspections  and audits  (other  than
environmental and engineering  inspections  referenced in Section 5.4), shall be
at Borrower's expense; provided, however, that Borrower shall not be required to
pay for such  inspection  and audits more than one (1) time per  calendar  year,
unless an Event of Default has occurred and is continuing.

5.25 Notices Regarding Lender's Interests.  Within three (3) Business Days after
acceptance of a Financed Note  Receivable by Lender,  Borrower or Servicer shall
notify the obligor under each Financed Note Receivable that such Note Receivable
has been assigned to Lender and, as  applicable,  that all future  Financed Note
Receivable coupon payments should be made to the Lockbox Account.

5.26  Payment  of  Charges.   To  the  extent  Borrower  has  control  over  the
Association,  Borrower shall promptly pay or cause to be paid when due all costs
and expenses  incurred in connection with Borrower's  ownership  interest in the
Timeshare  Project and other portions of the Facilities and the  construction of
the Improvements,  and Borrower shall keep Borrower's ownership interests in the
Timeshare  Project and other  portions of the  Facilities  free and clear of any
Charge other than the Permitted Exceptions,  and other Liens approved in writing
by Lender if any such lien would  attach to any  Financed  Notes  Receivable  or
Security  therefor.  Notwithstanding  anything to the contrary contained in this
Loan Agreement, Borrower may (a) discharge in accordance with applicable law any
such  Charge or contest the  validity or amount of any claim of any  contractor,
consultant,  architect,  or other Person providing labor, materials, or services
with respect to the Timeshare  Project and other  portions of the  Facilities or
(b) contest any tax or special assessments levied by any Governmental Authority;
provided  that (i) during the pendency of any such contest  Borrower  shall,  if
requested by Lender,  furnish to Lender and Title  Company,  cash,  an indemnity
bond from a corporate  surety  satisfactory to Lender and Title Company or other
adequate  security in an amount at least equal to the amount being  contested or
other  security  reasonably  acceptable to them to induce Title Company to issue
its title insurance  policy or an interim  endorsement  thereto insuring against
all such  claims or liens;  (ii) no Lien shall be  imposed to secure  payment of
such Charges (other than payments to warehousemen  and bailees) that is superior
to any of the Liens securing the Indebtedness and such contest is maintained and
prosecuted continuously and with diligence and operates to suspend collection or
enforcement  of such Charges;  (iii) none of the Collateral  becomes  subject to
forfeiture or loss as a result of such contest; and (iv) Borrower shall promptly
pay or discharge  such  contested  Charges,  Taxes or claims and all  additional
charges,  interest,  penalties and expenses, if any, and shall deliver to Lender
evidence  reasonably  acceptable  to  Lender  of  such  compliance,  payment  or
discharge,  if such contest is terminated or discontinued  adversely to Borrower
or the conditions set forth in this Section 5.26 are no longer met.

                                      -39-
<PAGE>

5.27 Amendment of Timeshare  Documents.  Without Lender's prior written consent,
which shall not be unreasonably  withheld,  Borrower shall not amend,  modify or
terminate the Timeshare Documents in a manner that would have a Material Adverse
Effect.

                                    ARTICLE 6

                   FINANCIAL COVENANTS; REPORTING REQUIREMENTS

            So long as any portion of the Indebtedness  remains unpaid or Lender
is committed to lend  hereunder,  unless Lender  otherwise  consents in writing,
Borrower hereby covenants and agrees with Lender as follows:

6.1 Financial Covenants.

            (a) Tangible Net Worth. It shall be an Event of Default if Guarantor
fails to maintain as of the last day of each fiscal  quarter a minimum  Tangible
Net  Worth in the  amount  of at least  equal  to the sum of Two  Hundred  Forty
Million Dollars  ($240,000,000.00)  plus the Net Income  Adjustment,  commencing
with the  Guarantor's  fiscal  quarter  ending  March 31,  2007  statements  and
continuing throughout the Term.

            (b)  Maximum  Leverage  Ratio.  It shall be an Event of  Default  if
Guarantor's ratio of Liabilities (exclusive of all Subordinated Indebtedness and
up to  $600,000,000.00  of  non-recourse  receivables-backed  notes  payable) to
Tangible  Net Worth  exceeds 2.5 to 1, as  determined  at the end of each fiscal
quarter.

            (c) Minimum Interest Coverage Ratio. It shall be an Event of Default
if Guarantor has an aggregate  Minimum Interest  Coverage Ratio less than 2.0:1,
as determined at the end of each fiscal quarter, calculated on a trailing twelve
(12) month  basis.  For the  avoidance  of doubt,  a negative  Minimum  Interest
Coverage Ratio shall be deemed to be zero and not in violation of this ratio.

6.2 Reporting  Requirements.  Borrower  shall  furnish,  or Borrower shall cause
Servicer to furnish (on a best efforts basis, if Servicer is not an Affiliate of
Borrower), the following to Lender during the Term:

            (a) Monthly Reports.  The Availability Report and, to the extent not
provided to Lender  pursuant to the  requirements  of the  Servicing  Agreement,
within  ten (10) days  after the end of each  calendar  month,  reports  showing
through the end of the  preceding  month,  (i) the  following  information  with
respect to each Financed Note  Receivable  and in the aggregate  with respect to
all  Financed  Notes  Receivable:  (A) the closing  balances  of Financed  Notes
Receivable,  (B) all payments received  allocated to interest,  principal,  late
charges,  taxes or the like, (C) the rate of interest, and (D) an itemization of
delinquencies,   extensions,   refinances,   prepayments,   upgrades,   payoffs,
cancellations and other adjustments, (ii) the weighted average interest rate and
the weighted average  remaining term of all Financed Notes  Receivable;  (iii) a
list of all Upgraded  Notes  Receivable;  (iv)  calculation  of the ratio of the
outstanding  principal of Financed Notes Receivable for each of thirty-one (31),
sixty (60) and ninety (90) days or greater,  past due on a contractual  basis to
the outstanding  principal of all Financed Notes  Receivable;  and (v) a list of
Financed Notes Receivable that became Defaulted Notes during the preceding

                                      -40-
<PAGE>

month.  Each monthly  report shall  include a  certification  from an authorized
party of the Servicer that the  information  contained in such monthly report is
true, correct and complete.

            (b) Sales  Reports.  Upon  written  request  of the  Lender,  within
fifteen (15) days after Lender's request but not more than fifteen (15) Business
Days after the end of the most recent  quarter,  a quarterly  report showing all
sales  and  cancellations  of  sales of  Timeshare  Interests  at the  Timeshare
Project, in the form attached hereto as Exhibit K, certified by the treasurer of
Borrower to be true,  correct and complete and otherwise in the form approved by
Lender.  Such  report will not contain  any  confidential  personal  information
relating to the Purchaser of such Timeshare Interest of the Timeshare Project.

            (c) Inventory  Reports.  Upon written request of the Lender,  within
fifteen (15) days after Lender's request but not more than fifteen (15) Business
Days  after the end of the most  recent  quarter,  an  inventory  report for the
Timeshare  Project detailing the available  inventory of Resort  Accommodations,
certified  by the  treasurer  of Borrower to be true,  correct and  complete and
otherwise in the form approved by Lender.

            (d) Quarterly  Financial  Reports  (Borrower and Guarantor).  Within
forty-five (45) days after the end of each fiscal quarter, other than the fourth
(4th) quarter of the year,  unaudited financial statements and the notes therein
for the trailing three (3) month period of Borrower and Guarantor, together with
a certification  from the treasurer of Borrower and chief  financial  officer of
Guarantor,  as applicable,  stating that such financial statements and the notes
therein are true,  correct and complete and a statement  prepared in  reasonable
detail showing the calculations used in determining  compliance with each of the
financial  covenants of the Guarantor in Section 6.1 hereof.  Concurrently  with
the delivery of such financial reports, a certificate signed by the treasurer of
the  Borrower   indicating   that  the  Borrower  is  in  compliance   with  all
representations,  warranties  and  covenants of the Agreement and the other Loan
Documents  or, if a  Potential  Default  or Event of  Default  then  exists,  an
identification  of any such Potential Default or Event of Default and the steps,
if any, that Borrower is undertaking to cure such Potential  Default or Event of
Default.

            (e) Annual Financial Reports (Association).  Within ninety (90) days
after the end of each  fiscal  year,  unaudited  financial  statements  for such
fiscal year of the Association,  certified by an officer of the entity preparing
such financial statements.

            (f) Year-End Financial Reports (Borrower and Guarantor).  As soon as
available  and in any event  within one hundred and twenty  (120) days after the
end of each fiscal year of Borrower: (i) the balance sheet of Borrower as of the
end of such year and the  related  statements  of income  and cash flow for such
fiscal  year;  (ii) a listing of  outstanding  notes  payable at the end of such
fiscal year;  and (iii) with respect to the financial  statements  and the notes
therein of Borrower and Guarantor,  copies of reports from a firm of independent
certified public accountants  selected by Borrower or Guarantor,  as applicable,
which report  shall be  unqualified  as to going  concern and scope of audit and
shall state that such financial  statements and the notes therein present fairly
the financial position of Borrower and Guarantor, as applicable, as of the dates
indicated  and the  results  of its  operations  and cash  flow for the  periods
indicated in  conformity  with GAAP.  Such  financial  statements  and the notes
therein shall be accompanied by the  certification  of the treasurer of Borrower
and chief financial officer of

                                      -41-
<PAGE>

Guarantor,  as  applicable,  that all such  financial  statements  and the notes
therein present fairly in accordance with GAAP the financial  position,  results
of  operations  and  statements  of cash flows of  Borrower  and  Guarantor,  as
applicable,  as at the end of such fiscal year and for the period then ended and
indicating  that  the  Borrower  is  in  compliance  with  all  representations,
warranties  and covenants of the  Agreement and the other Loan  Documents or, if
the Borrower is in default, an identification of any such default and the steps,
if any, that Borrower is undertaking to cure such default.

            (g) Management Letters.  Within five (5) Business Days after receipt
thereof  by  the  Borrower  or  Guarantor,  copies  of all  management  letters,
exception  reports  or  similar  letters  or reports  received  by  Borrower  or
Guarantor from its independent certified public accountants.

            (h) Annual Report. If the Borrower is in control of the Association,
then  within one  hundred  and twenty  (120) days or such  shorter  period as is
required by law or the applicable Timeshare  Documents,  or otherwise as soon as
available  and in any event  within the time period  prescribed  therefor in the
Timeshare  Documents,  such annual report as is prepared by the  Association for
delivery to its members.

            (i) Audit Reports.  Promptly upon receipt  thereof,  one (1) copy of
each other report  submitted to Borrower or to the  Association  by  independent
public accountants in connection with any annual,  interim or special audit made
by them of the books of the Borrower or the Association, respectively.

            (j) Supplemental Disclosure.  From time to time as may be reasonably
requested in writing by Lender (which  request will not be made more  frequently
than once each year absent the occurrence and continuance of a Potential Default
or an Event of Default),  Borrower and Guarantor  shall  supplement  each of the
Schedules  attached hereto,  or any  representation  herein or in any other Loan
Document,  with respect to any matter  hereafter  arising  that,  if existing or
occurring  at the date of this  Agreement,  would have been  required  to be set
forth or described in such Schedule or as an exception to such representation or
that is necessary to correct any information in such Schedule or  representation
which has been rendered  inaccurate thereby (and, in the case of any supplements
to any Schedule, such Schedule shall be appropriately marked to show the changes
made  therein);  provided  that (i) no such  supplement  to any such Schedule or
representation  shall  amend,  supplement  or  otherwise  modify any Schedule or
representation,  or be  deemed a waiver  of any  Potential  Default  or Event of
Default resulting from the matters disclosed therein,  except as consented to by
Lender  in   writing;   and  (ii)  no   supplement   shall  be  required  as  to
representations and warranties that relate solely to the Closing Date.

            (k) Other  Reports.  Such  other  reports,  statements,  notices  or
written communications relating to the Borrower, the Association,  the Timeshare
Project or the Facilities as Lender may require, in its reasonable discretion.

                                      -42-
<PAGE>

                                    ARTICLE 7

                                EVENTS OF DEFAULT

            Each of the following shall constitute an Event of Default under the
Loan:

7.1 Payments.  Borrower's failure to pay any regularly scheduled  installment of
principal, interest or other amount due under the Loan Documents within five (5)
Business Days after the date when due or  Borrower's  failure to pay the Loan at
the applicable maturity date, whether by acceleration or otherwise. In the event
of a Force  Majeure  Delay,  the grace  period  shall be extended up to ten (10)
additional  Business  Days as  appropriate  and  provided  further that no grace
period  shall apply to the payment due on the Loan  Maturity  Date other than in
the event of a Force Majeure Delay.

7.2  Insurance.  Borrower's  failure to maintain  insurance  as  required  under
Section 3.1 of this Agreement.

7.3 Transfer. Any Transfer occurs in violation of Section 5.1 of this Agreement.

7.4 Covenants.  Borrower's failure to perform, observe or comply with any of the
agreements, covenants or provisions contained in this Agreement or in any of the
other Loan  Documents  (other than those  agreements,  covenants and  provisions
referred to elsewhere in this  Article 7), and the  continuance  of such failure
for ten (10) Business Days after notice by Lender to Borrower;  however, subject
to any shorter  period for curing any failure by Borrower as specified in any of
the other Loan Documents,  Borrower shall have an additional thirty (30) days to
cure such  failure if (1) such  failure  does not  involve  the  failure to make
payments on a monetary  obligation;  (2) such failure cannot reasonably be cured
within ten (10) Business Days but, using reasonable diligence, is curable within
such 30-day period; (3) Borrower is diligently undertaking to cure such default,
and (4) Borrower has provided  Lender with security  reasonably  satisfactory to
Lender  against any  interruption  of payment or  impairment  of collateral as a
result of such  continuing  failure.  The  notice  and cure  provisions  of this
Section  7.4 do not  apply to the  other  Events of  Default  described  in this
Article 7 or Borrower's failure to comply with the provisions of Article 10.

7.5 Representations  and Warranties.  Any representation or warranty made in any
Loan Document  proves to be untrue in any material and adverse respect when made
or deemed made.

7.6 Other Encumbrances. Any default under the RFC Loan Documents relating to the
Timeshare Project  evidencing or creating a Lien on the Timeshare Project or any
part thereof.

7.7 Involuntary  Bankruptcy or Other Proceeding.  Commencement of an involuntary
case or other proceeding against Borrower,  Guarantor or the Club Trustee (each,
a "Bankruptcy  Party") which seeks  liquidation,  reorganization or other relief
with  respect  to it or its debts or other  liabilities  under  any  bankruptcy,
insolvency  or other  similar  law now or  hereafter  in  effect  or  seeks  the
appointment  of a trustee,  receiver,  liquidator,  custodian  or other  similar
official  of it or any of its  property,  and  such  involuntary  case or  other
proceeding shall remain undismissed or unstayed for a period of sixty (60) days;
or an order for relief  against a Bankruptcy  Party shall be entered in any such
case under the Federal Bankruptcy Code.

                                      -43-
<PAGE>

7.8 Voluntary Petitions,  Etc. Commencement by a Bankruptcy Party of a voluntary
case or other proceeding  seeking  liquidation,  reorganization  or other relief
with respect to itself or its Debts or other  liabilities  under any bankruptcy,
insolvency  or other  similar  law or  seeking  the  appointment  of a  trustee,
receiver,  liquidator,  custodian or other similar official for it or any of its
property,  or  consent  by a  Bankruptcy  Party  to any  such  relief  or to the
appointment of or taking  possession by any such official in an involuntary case
or other proceeding commenced against it, or the making by a Bankruptcy Party of
a  general  assignment  for  the  benefit  of  creditors,  or the  failure  by a
Bankruptcy  Party,  or the  admission  by a  Bankruptcy  Party in writing of its
inability,  to pay its debts  generally  as they  become due, or any action by a
Bankruptcy Party to authorize or effect any of the foregoing.

7.9 Suspension of Sales. The issuance of any stay order,  cease and desist order
or similar judicial or non-judicial sanction that materially limits or otherwise
affects any  Timeshare  Interest  sales  activities  relating  to the  Timeshare
Project,  and,  with respect to any such  sanction  only,  such  sanction is not
dismissed, terminated or rescinded within thirty (30) days after issuance.

7.10  Default by  Borrower in Other  Agreements.  Any default by Borrower in the
payment of  indebtedness  for borrowed  money under the RFC Loan  Documents  and
relating to the Timeshare Project,  after the expiration of any applicable grace
or cure period;  any other default under such indebtedness  which accelerates or
permits  the  acceleration  (after the  giving of notice or passage of time,  or
both) of the maturity of such  indebtedness;  or any default  under the RFC Loan
Documents  relating to the  Timeshare  Project  which permits RFC to control the
management of Borrower.

7.11 Other Agreements. Any material default or breach of the Borrower occurs and
is continuing under the Management Agreement.

                                    ARTICLE 8

                                    REMEDIES

8.1 Remedies - Insolvency  Events.  Upon the  occurrence of any Event of Default
described in Section 7.7 or 7.8, the  obligations  of Lender to Advance  amounts
hereunder  shall  immediately  terminate,  and all  amounts  due  under the Loan
Documents  immediately shall become due and payable,  all without written notice
and without presentment,  demand, protest, notice of protest or dishonor, notice
of intent to accelerate  the maturity  thereof,  notice of  acceleration  of the
maturity  thereof,  or any other notice of default of any kind, all of which are
hereby  expressly  waived by Borrower;  however,  if the Bankruptcy  Party under
Section 7.7 or 7.8 is other than  Borrower,  then all amounts due under the Loan
Documents  shall become  immediately  due and payable at Lender's  election,  in
Lender's sole discretion.

8.2 Remedies - Other Events. Except as set forth in Section 8.1 above, while any
Event of Default exists beyond applicable cure rights, Lender may (1) by written
notice to Borrower,  declare the entire Loan to be  immediately  due and payable
without presentment,  demand, protest, notice of protest or dishonor,  notice of
intent  to  accelerate  the  maturity  thereof,  notice of  acceleration  of the
maturity  thereof,  or other  notice of  default  of any kind,  all of which are
hereby  expressly waived by Borrower,  (2) terminate the obligation,  if any, of
Lender to advance

                                      -44-
<PAGE>

amounts  hereunder,  and (3) exercise all rights and remedies therefor under the
Loan Documents and at law or in equity.

8.3 Lender's Right to Perform the Obligations. If Borrower shall fail, refuse or
neglect to make any payment or perform any act  required by the Loan  Documents,
then while any Event of Default  exists,  and  without  notice to or demand upon
Borrower and without  waiving or releasing  any other right,  remedy or recourse
Lender may have  because of such Event of Default,  Lender may (but shall not be
obligated  to) make such  payment or perform  such act for the account of and at
the expense of Borrower,  and shall,  subject to the provisions of the Timeshare
Declaration  and  Governmental  Requirements  and subject to any other  Person's
prior right to cure  provided  Lender has  received  notice that such Person has
elected to cure,  have the right to enter upon the  Timeshare  Project  for such
purpose and to take all such action  thereon and with  respect to the  Timeshare
Project as it may  reasonably  deem  necessary  or  appropriate.  Subject to the
foregoing,  if  Lender  shall  elect  to pay any sum due with  reference  to the
Timeshare  Project,  Lender  may do so in  reliance  on any bill,  statement  or
assessment procured from the appropriate  Governmental Authority or other issuer
thereof without inquiring into the accuracy or validity thereof.  Similarly,  in
making any payments to protect the  security  intended to be created by the Loan
Documents,  Lender  shall  not be bound to  inquire  into  the  validity  of any
apparent or threatened adverse title, lien, encumbrance,  claim or charge before
making an Advance for the purpose of preventing  or removing the same.  All sums
paid by Lender  pursuant  to this  Section  8.3 and all other sums  expended  by
Lender to which it shall be entitled  to be  indemnified  under this  Agreement,
together with interest thereon at the Default Rate from the date of such payment
or expenditure  until paid,  shall  constitute  additions to the Loan,  shall be
secured  by the Loan  Documents  and shall be paid by  Borrower  to Lender  upon
demand.

8.4 Remedies Upon Default.  Upon the  occurrence of an Event of Default,  Lender
may  take  any one or more of the  following  actions,  all  without  notice  to
Borrower:

            (a)  Judgment.  Reduce  Lender's  claim to  judgment,  foreclose  or
otherwise  enforce  Lender's  security  interest  in  all  or  any  part  of the
Collateral by any available judicial or non-judicial procedure.

            (b) Sale of  Collateral.  Exercise  all the rights and remedies of a
secured  party on default under the Code (whether or not the Code applies to the
affected  Collateral)  including  (i) require  Borrower to, and Borrower  hereby
agrees  that it will,  at its  expense  and upon  request  of Lender  forthwith,
assemble  all or part of the  Collateral  as  directed  by  Lender  and  make it
available to Lender at a place to be  designated  by Lender which is  reasonably
convenient  to both  parties;  (ii) enter upon any premises of Borrower and take
possession of the Collateral;  and (iii) sell the Collateral or any part thereof
in one or more parcels at public or private sale, at any of the Lender's offices
or elsewhere, at such time or times, for cash, on credit or for future delivery,
and at such  price or  prices  and upon  such  other  terms as  Lender  may deem
commercially  reasonable.  Borrower  agrees that,  to the extent  notice of sale
shall be required by law, ten (10) Business Days notice of the time and place of
any  sale  shall  constitute  reasonable  notification.   At  any  sale  of  the
Collateral,  if permitted by law,  Lender may bid (which bid may be, in whole or
in part, in the form of  cancellation of  indebtedness)  for the purchase of the
Collateral  or any portion  thereof for the  account of Lender.  Borrower  shall
remain  liable  for any  deficiency.  Lender  shall not be  required  to proceed
against any Collateral but may proceed

                                      -45-
<PAGE>

against  Borrower  directly.  To the extent  permitted by law,  Borrower  hereby
specifically waives all rights of redemption,  stay or appraisal which it has or
may have under any law now existing or hereafter enacted.

            (c)  Receiver.   Apply  by  appropriate   judicial  proceedings  for
appointment of a receiver for the Collateral,  or any part thereof, and Borrower
hereby consents to any such appointment.

            (d) Reserved.

            (e) Exercise of Other  Rights.  Exercise any and all other rights or
remedies  afforded by any  applicable  laws or by the Loan  Documents  as Lender
shall deem appropriate,  at law, in equity or otherwise,  including the right to
charge  interest  at the  Default  Rate and to bring  suit or other  proceeding,
either for specific  performance  of any covenant or condition  contained in the
Loan  Documents  or in aid of the  exercise  of any right or remedy  granted  to
Lender in the Loan Documents.

8.5 Funds of Lender.  Any funds of Lender  used for any  purpose  referred to in
this  Section  8  shall  constitute  protective  advances  secured  by the  Loan
Documents and shall bear interest at the Default Rate.

8.6 Application of Collateral; Termination of Agreements. Upon the occurrence of
an Event of  Default,  Lender may apply  against  the  Indebtedness  any and all
Collateral in its possession,  other than misdirected  deposits, if any, any and
all balances,  credits,  deposits,  accounts,  reserves,  indebtedness  or other
moneys  due or owing to  Borrower  held by Lender  hereunder  or under any other
financing agreement or otherwise, whether accrued or not.

8.7 Direct  Disbursement  and  Application by Lender.  Upon an Event of Default,
Lender shall have the right,  but not the  obligation,  to disburse and directly
apply the proceeds of any Advance or the  unadvanced  balance of the Loan to the
satisfaction  of any of  Borrower's  obligations  hereunder  or under any of the
other Loan  Documents.  Any Advance by Lender for such purpose  shall be part of
the Loan and shall be secured by the Loan  Documents,  even  though in excess of
the amount of the Loan,  shall be secured by the Loan  Documents  and payable to
Lender.

8.8 Waivers. No waiver by Lender of any Event of Default shall be deemed to be a
waiver of any other or  subsequent  Event of  Default,  nor shall any  waiver by
Lender of any of its rights or remedies hereunder,  in the other Loan Documents,
or otherwise,  shall be considered a waiver of any other or subsequent  right or
remedy of Lender.  No delay or  omission  by Lender in  exercising  any right or
remedy  under  the Loan  Documents  shall  impair  such  right or  remedy  or be
construed as a waiver thereof or an acquiescence  therein,  nor shall any single
or  partial  exercise  of any such  right or remedy  preclude  other or  further
exercise  thereof,  or the  exercise of any other right or remedy under the Loan
Documents or otherwise. Further, Borrower waives notice of the occurrence of any
Event of Default,  presentment  and demand for payment,  protest,  and notice of
protest, notice of intention to accelerate, acceleration and nonpayment, and any
and all rights to  require  the  marshalling  of assets in  connection  with the
exercise of its remedies  hereunder,  and agrees that its liability shall not be
affected by any renewal or extension in the

                                      -46-
<PAGE>

time of payment of the Indebtedness, or by any release or change in any security
for the payment or performance of the Indebtedness,  regardless of the number of
such renewals, extensions,  releases or changes. Borrower also hereby waives the
right to assert any statute of  limitations  as a bar to the  enforcement of the
lien created by any of the Loan  Documents  or to any action  brought to enforce
the Note or any other obligation secured by the Loan Documents.

8.9 Commercial Reasonableness.  To the extent that applicable law imposes duties
on Lender to exercise  remedies in a commercially  reasonable  manner,  Borrower
acknowledges and agrees that it is not commercially  unreasonable for Lender (a)
to fail to incur expenses reasonably deemed significant by the Lender to prepare
Collateral  for  disposition,  (b) to fail to obtain  third party  consents  for
access to  Collateral  to be  disposed  of, or to obtain or, if not  required by
other  law,  to fail to obtain  governmental  or third  party  consents  for the
collection or  disposition  of Collateral to be collected or disposed of, (c) to
fail to  exercise  collection  remedies  against  Purchasers  or  other  Persons
obligated  on  Collateral  or to remove Liens on or any adverse  claims  against
Collateral,  (d) to exercise  collection  remedies against  Purchasers and other
Persons  obligated  on  Collateral  directly  or through  the use of  collection
agencies and other  collection  specialists,  (e) to advertise  dispositions  of
Collateral through publications or media of general circulation,  whether or not
the Collateral is of a specialized nature, (f) to contact other Persons, whether
or not in the  same  business  as  Borrower,  for  expressions  of  interest  in
acquiring  all or any  portion  of  such  Collateral,  (g) to  hire  one or more
professional auctioneers to assist in the disposition of Collateral,  whether or
not the Collateral is of a specialized  nature,  (h) to dispose of Collateral by
utilizing  internet  sites that  provide  for the auction of assets of the types
included in the Collateral or that have the reasonable  capacity of doing so, or
that match  buyers and sellers of assets,  (i) to dispose of assets in wholesale
rather than retail  markets,  (j) to disclaim  disposition  warranties,  such as
title,  possession  or quiet  enjoyment,  (k) to  purchase  insurance  or credit
enhancements  to  insure  the  Lender  against  risks  of  loss,  collection  or
disposition  of Collateral or to provide to Lender a guaranteed  return from the
collection or disposition of Collateral, or (l) to the extent deemed appropriate
by  Lender  to  obtain  the  services  of  other  brokers,  investment  bankers,
consultants  and other  professionals  to assist the Agent in the  collection or
disposition of any of the Collateral.  Borrower acknowledges that the purpose of
this  Section 8.9 is to provide  non-exhaustive  indications  of what actions or
omissions  by Lender  would not be  commercially  unreasonable  in the  Lender's
exercise of remedies  against the Collateral and that other actions or omissions
by Lender shall not be deemed commercially unreasonable solely on account of not
being  indicated in this Section 8.9.  Without  limitation  upon the  foregoing,
nothing  contained in this Section 8.9 shall be construed to grant any rights to
Borrower or to impose any duties on Lender  that would not have been  granted or
imposed by this  Agreement or by  applicable  law in the absence of this Section
8.9.

8.10 Cumulative Rights. Lender shall have all of the rights and remedies granted
in the Loan  Documents and available at law or in equity,  and these same rights
and remedies shall be cumulative and may be pursued separately, successively, or
concurrently  against  Borrower or any  Collateral,  at the sole  discretion  of
Lender. The exercise or failure to exercise any of the same shall not constitute
a waiver or release thereof or of any other right or remedy,  and the same shall
be nonexclusive.

8.11  Intercreditor  Agreement.  Borrower and Lender  acknowledge and agree that
pursuant  to the  Intercreditor  Agreement,  RFC  has  consented  to  Borrower's
entering into the Loan

                                      -47-
<PAGE>

Documents  which grant to Lender certain  rights to exercise  remedies under the
Loan  Documents  including  rights of Lender under Article 3, Sections 5.1, 5.8,
5.24, 9.1, 9.2, 9.6 and 9.7.

                                    ARTICLE 9

                            CERTAIN RIGHTS OF LENDER

9.1 Protection of Collateral.  Lender may at any time and from time to time take
such actions as Lender deems necessary or appropriate to protect  Lender's Liens
and security interests in and to preserve the Collateral.

9.2 Performance by Lender. If Borrower fails to perform any agreement  contained
herein,  Lender may, but shall not be obligated  to, cause the  performance  of,
such  agreement,  and the expenses of Lender  incurred in  connection  therewith
shall be payable by Borrower pursuant to Section 9.3 below.

9.3 Costs. Borrower agrees promptly to pay all Costs and all such Costs shall be
included as additional Indebtedness bearing interest at the then applicable Loan
Interest  Rate until paid.  This  provision is separate  and several,  and shall
survive merger into judgment.

9.4 Assignment of Lender's  Interest.  Lender shall have the right to assign all
or any  portion  of its rights in this  Agreement  to any  subsequent  holder or
holders of the  Indebtedness;  provided  that so long as no Event of Default has
occurred and is continuing, such assignment shall be to a Qualified Assignee and
shall  require  the  consent  of  the  Borrower,  which  consent  shall  not  be
unreasonably  withheld  and  shall not be  required  in  connection  with (i) an
assignment to an Affiliate of the Lender,  (ii) an assignment of Lender's  whole
portfolio of timeshare  related  loans,  or (iii) after the end of the Revolving
Period. Upon such assignment,  such assignee shall be a party hereto (or execute
a  separate  agreement  in form and  substance  acceptable  to each of the other
parties  hereto) and, to the extent that rights and  obligations  hereunder have
been  assigned  to it  pursuant  to such  assignment,  shall have the rights and
obligations  of the  Lender  under  this  Agreement  (or  the  same  rights  and
obligations under a separate agreement in form and substance  acceptable to each
of the other parties hereto) and the Lender shall, to the extent that rights and
obligations  hereunder  have been  assigned by it  pursuant to such  assignment,
relinquish its rights and be released from its obligations hereunder.

9.5 Notice to Purchasers.  Borrower  authorizes  each of Lender and, at Lender's
direction,  the Custodian (but the Lender shall not be obligated) to communicate
at any  time and from  time to time  after  Lender's  financing  of a  Timeshare
Interest if the Lender  reasonably  believes  an Event of Default has  occurred,
with any Purchaser or any other Person  primarily or secondarily  liable under a
Financed  Note  Receivable  with regard to the lien or other  interest of Lender
thereon  and any other  matter  relating  thereto.  Lender may  perform,  at its
expense,  any and all  credit  investigations  as Lender may deem  necessary  to
determine  whether any such Purchaser meets the credit  standards as outlined in
the definition of an Eligible Note Receivable.

9.6 Collection of Notes.  Borrower shall, or shall cause Servicer to, direct and
authorize  each  applicable  party liable for the payment of the Financed  Notes
Receivable to pay each installment  thereon to the Lockbox Agent pursuant to the
Lockbox Agreement, until otherwise directed by

                                      -48-
<PAGE>

Lender.  Following the occurrence of an Event of Default,  Lender shall have the
right to (a) require that all payments due under the Financed  Notes  Receivable
be paid directly to Lender, and to receive,  collect, hold and apply the same in
accordance with the provisions of this Agreement,  whereupon Lender shall notify
Borrower  and  Servicer of its receipt  and  application  of any such funds with
sufficient  detail and  information  for the  Servicer to credit the accounts in
respect of a Financed Note  Receivable in such timeframe as required by Servicer
and (b) take such remedial  action  available to it for the  enforcement  of any
defaulted  Financed Note  Receivable  including the  foreclosure of any Mortgage
securing  the  payment  thereof.  After the  occurrence  of an Event of Default,
Borrower hereby further irrevocably  authorizes,  directs and empowers Lender to
collect and receive all checks and drafts  evidencing  payments on the  Financed
Notes  Receivable  and to endorse  such checks or drafts in the name of Borrower
and upon such  endorsements,  to collect and receive  the money  therefor.  Upon
payment and satisfaction in full of all Indebtedness, Lender will, at Borrower's
request and sole expense,  give written notice as necessary to redirect  payment
of the Financed Notes Receivable as requested by Borrower.

9.7 Power of Attorney.  Borrower does hereby irrevocably  constitute and appoint
Lender as Borrower's true and lawful agent and attorney in fact, with full power
of  substitution,  for  Borrower and in  Borrower's  name,  place and stead,  or
otherwise,  to (a) endorse any checks or drafts  payable to Borrower in the name
of Borrower and in favor of Lender as provided in Section 9.6 above;  (b) demand
and receive from time to time any and all property,  rights,  titles,  interests
and liens hereby sold,  assigned and  transferred,  or intended so to be, and to
give  receipts for same;  and (c) cause such reports to be prepared or audits to
be performed if Borrower fails to deliver such reports  and/or audits;  (d) upon
the occurrence and during the continuance of any Event of Default hereunder, (i)
institute  and  prosecute  in the name of  Borrower  or  otherwise,  but for the
benefit of Lender, any and all proceedings at law, in equity, or otherwise, that
Lender may deem proper in order to collect,  assert or enforce any claim,  right
or title,  of any kind, in and to the property,  rights,  titles,  interests and
liens hereby sold, assigned or transferred,  or intended so to be, and to defend
and  compromise  any and all actions,  suits or proceedings in respect of any of
the said property, rights, titles, interests and liens, and (ii) generally to do
all and any such acts and things in relation to the  Collateral  as Lender shall
in good faith deem advisable. Borrower hereby declares that the appointment made
and the powers granted pursuant to this Section are coupled with an interest and
are and shall be  irrevocable  by  Borrower  in any  manner,  or for any reason,
unless and until all obligations of Borrower to Lender have been satisfied.

                                   ARTICLE 10

                            ANTI-MONEY LAUNDERING AND
                          INTERNATIONAL TRADE CONTROLS

10.1  Compliance  with  International  Trade Control Laws and OFAC  Regulations.
Borrower represents, warrants and covenants to Lender that:

            (i) It is not now nor shall it be at any time  until  after the Loan
is  fully  repaid  a Person  with  whom a U.S.  Person,  including  a  Financial
Institution, is prohibited from transacting business of the type contemplated by
this  Agreement,  whether such  prohibition  arises under U.S. law,  regulation,
executive orders and lists published by the OFAC (including those executive

                                      -49-
<PAGE>

orders  and  lists  published  by OFAC  with  respect  to  Specially  Designated
Nationals and Blocked Persons) or otherwise.

            (ii) No Borrower  Party and no Person who owns a direct  interest in
Borrower is now nor shall be at any time until after the Loan is fully  repaid a
Person with whom a U.S. Person, including a Financial Institution, is prohibited
from transacting  business of the type  contemplated by this Agreement,  whether
such prohibition arises under U.S. law,  regulation,  executive orders and lists
published by the OFAC (including  those executive  orders and lists published by
OFAC with  respect to Specially  Designated  Nationals  and Blocked  Persons) or
otherwise.

10.2 Borrower's  Funds.  Borrower  represents,  warrants and covenants to Lender
that:

            (i) It has taken, and shall continue to take until after the Loan is
fully  repaid,  such  measures  as are  required by law to verify that the funds
invested in the Borrower are derived (a) from  transactions  that do not violate
U.S. law nor, to the extent such funds originate  outside the United States,  do
not violate the laws of the jurisdiction in which they originated;  and (b) from
permissible  sources  under  U.S.  law and to the extent  such  funds  originate
outside  the United  States,  under the laws of the  jurisdiction  in which they
originated.

            (ii)  To the  best  of its  knowledge,  neither  Borrower,  nor  any
Borrower Party, nor any holder of a direct interest in Borrower,  nor any Person
providing  funds to  Borrower  (a) is under  investigation  by any  governmental
authority for, or has been charged with, or convicted of, money laundering, drug
trafficking, terrorist-related activities, any crimes which in the United States
would  be  predicate  crimes  to  money  laundering,  or  any  violation  of any
Anti-Money  Laundering  Laws; (b) has been assessed civil or criminal  penalties
under any Anti-Money  Laundering Laws; and (c) has had any of its/his/her  funds
seized or forfeited in any action under any Anti-Money Laundering Laws.

            (iii)  Borrower shall make payments on the Loan using funds invested
in  Borrower,  Total  Revenues of  Borrower,  collections  on Notes  Receivable,
proceeds of Debt or insurance proceeds unless otherwise agreed to by Lender.

            (iv) To the best of Borrower's knowledge, as of the Closing Date and
at all times  during  the term of the  Loan,  all Total  Revenues  of  Borrower,
collections  on Notes  Receivable  and  proceeds of Debt are and will be derived
from Borrower's business activities or other permissible sources under U.S. law.

            (v) On the Loan Maturity Date,  Borrower will take reasonable  steps
to verify that funds used to repay the Loan in full (whether in connection  with
a refinancing,  asset sale or otherwise) are from sources permissible under U.S.
law  and  to  the  extent  such  funds  originate  outside  the  United  States,
permissible under the laws of the jurisdiction in which they originated.

                                      -50-
<PAGE>

                                   ARTICLE 11

                              ENVIRONMENTAL MATTERS

11.1  Representations  and Warranties on  Environmental  Matters.  To Borrower's
knowledge, except as set forth in the Site Assessment, (1) no Hazardous Material
is  now  or was  formerly  used,  stored,  generated,  manufactured,  installed,
disposed  of or  otherwise  present  at or about the  Timeshare  Project  or any
property  adjacent  to the  Timeshare  Project  (except for  cleaning  and other
products currently used in connection with the routine  maintenance or repair of
the Timeshare  Project in full  compliance  with  Environmental  Laws),  (2) all
material permits, licenses, approvals and filings required by Environmental Laws
have been  obtained,  and the use,  operation  and  condition  of the  Timeshare
Project do not, and did not previously,  violate any Environmental Laws, and (3)
no civil, criminal or administrative action, suit, claim, hearing, investigation
or proceeding has been brought or been threatened, nor have any settlements been
reached by or with any  parties  or any liens  imposed  in  connection  with the
Timeshare Project concerning Hazardous Materials or Environmental Laws.

11.2 Covenants on Environmental Matters.

            (a)  Borrower  shall (A)  comply  in all  respects  with  applicable
Environmental  Laws; (B) notify Lender immediately upon Borrower's  discovery of
any spill, discharge, release or presence of any Hazardous Material in violation
of  applicable  Environmental  Laws at, upon,  under,  within,  contiguous to or
otherwise  affecting the Timeshare  Project which would have a Material  Adverse
Effect; (C) promptly remove all Hazardous Materials which violate  Environmental
Laws and  remediate  the  Timeshare  Project which is managed by Borrower or its
Affiliate  (and if the  Timeshare  Project  is not  managed by  Borrower  or its
Affiliate,  use its  best  efforts  to  cause  the  Timeshare  Project  to be so
remediated)  in  full  compliance  with  applicable  Environmental  Laws  and in
accordance  with  the  recommendations  and  specifications  of  an  independent
environmental  consultant  reasonably  acceptable  to  Lender  and (D)  promptly
forward to Lender copies of all claims made against or in respect of Borrower or
any of its Affiliates and relating to the Timeshare  Project,  and copies of all
orders,  notices,  permits,  applications or other communications and reports in
connection with any spill,  discharge,  release or the presence of any Hazardous
Material or any other matters relating to the Environmental  Laws or any similar
laws or  regulations,  as they may affect the  Timeshare  Project which would be
material in respect of the  Timeshare  Project.  Borrower  shall not cause,  and
shall use prudent,  commercially reasonable efforts to prohibit any other Person
within the control of Borrower from causing any spill,  discharge or release, or
the use, storage,  generation,  manufacture,  installation,  or disposal, of any
Hazardous  Materials at, upon,  under,  within or about the Timeshare Project or
the  transportation of any Hazardous  Materials to or from the Timeshare Project
(except in material compliance with Environmental Laws).

            (b) After the  Closing  Date,  Borrower  shall  provide  to  Lender,
promptly upon the written  request of Lender,  a Site Assessment or, if required
by Lender, an update to any existing Site Assessment,  to assess the presence or
absence of any Hazardous  Materials and the potential  costs in connection  with
abatement,  cleanup or removal of any Hazardous Materials found on, under, at or
within the Timeshare  Project and the cost of any such Site Assessment or update
shall be paid as set forth in Section 5.4 of this Agreement.

                                      -51-
<PAGE>

            (c) As between  Borrower,  on the one hand, and Lender, on the other
hand, all risk of loss associated with  non-compliance  with Environmental Laws,
or with the presence of any Hazardous Material at, upon,  within,  contiguous to
or otherwise  affecting the Timeshare  Project,  shall lie solely with Borrower.
Accordingly,  Borrower shall bear all risks and costs  associated  with any such
loss (including any loss in value attributable to Hazardous  Materials),  damage
or liability therefrom, including all costs of removal of Hazardous Materials or
other remediation required by applicable Governmental Requirements.

            (d) Borrower  shall  indemnify  the Lender and agrees to hold Lender
harmless from and against any and all losses,  liabilities,  damages,  injuries,
costs,  expenses and claims of any and every kind  whatsoever  (including  court
costs and  reasonable  attorneys'  fees and legal  expenses)  arising  out of or
associated,  in any way, with the non-compliance  with applicable  Environmental
Laws with  respect to the  Timeshare  Project,  or the  existence  of  Hazardous
Materials in, on, or about the  Facilities,  or a breach of any  representation,
warranty or covenant  contained in this Article 11,  whether  based in contract,
tort, implied or express warranty,  strict liability,  criminal or civil statute
or  common  law,  including  those  arising  from  the  joint,  concurrent,   or
comparative  negligence  of  the  Lender  (except  to  the  extent  such  joint,
concurrent or comparative  negligence  constitutes  gross  negligence or willful
misconduct on the part of Lender); provided, further, that this Article 11 shall
not apply with respect to any liability, release, violation or other matter that
arises solely from the Lender's gross negligence or willful  misconduct or after
Borrower loses  possession of any property due to foreclosure or other exercises
of remedies by Lender. To the extent that the undertaking to indemnify,  pay and
hold  harmless set forth in this Article 11 may be  unenforceable  because it is
violative of any law or public  policy,  Borrower  shall  contribute the maximum
portion  that it is  permitted to pay and satisfy  under  applicable  law to the
payment and satisfaction of all  indemnifications  set forth in this Article 11.
Borrower's  obligations  under this Article 11 shall arise upon the discovery of
the presence of any Hazardous Material which violates  applicable  Environmental
Law,  whether or not any  Governmental  Authority  has taken or  threatened  any
action in  connection  with the  presence of any such  Hazardous  Material,  and
whether  or not the  existence  of any  such  Hazardous  Material  or  potential
liability  on account  thereof is  disclosed  in any Site  Assessment  and shall
continue  notwithstanding  the  termination of this Agreement or any transfer or
sale of any right, title and interest in the assets of Borrower (by foreclosure,
deed in lieu of foreclosure or otherwise).

            (e) Notwithstanding any provision in this Article 11 or elsewhere in
any Loan  Document,  or any rights or  remedies  granted  by any Loan  Document,
Lender  does not waive all rights and  benefits  now or  hereafter  accruing  to
Lender under the  "security  interest"  or "secured  creditor"  exception  under
applicable  Environmental  Laws, as the same may be amended.  No action taken by
Lender  pursuant  to the Loan  Documents  shall be deemed or  construed  to be a
waiver or  relinquishment  of any such  rights or benefits  under the  "security
interest exception."

                                      -52-
<PAGE>

                                   ARTICLE 12

                                  MISCELLANEOUS

12.1 Notices.  Any notice required or permitted to be given under this Agreement
shall be in  writing  and  either  shall be mailed by  certified  mail,  postage
prepaid,  return receipt requested, or sent by overnight air courier service, or
personally  delivered to a  representative  of the receiving  party,  or sent by
telecopy or electronic mail (provided that for both telecopy and electronic mail
delivery,  an identical notice is also sent  simultaneously  by mail,  overnight
courier or personal  delivery as otherwise  provided in this Section 12.1).  All
such notices shall be mailed, sent or delivered, addressed to the party for whom
it is intended at its address set forth below.

            If to Borrower:      Bluegreen/Big Cedar Vacations, LLC
                                 c/o Bluegreen Corporation
                                 4960 Conference Way North, Suite 100
                                 Boca Raton, FL  33431
                                 Attention:   Anthony M. Puleo
                                 Telecopy:    (561) 912-8123
                                 E Mail:  tony.puleo@bluegreencorp.com

            with a copy to:      Bluegreen/Big Cedar Vacations, LLC
                                 c/o Bluegreen Corporation
                                 4960 Conference Way North, Suite 100
                                 Boca Raton, FL  33431
                                 Attention:   General Counsel
                                 Telecopy:    (561) 912-8299
                                 E Mail:  jim.martin@bluegreencorp.com

            If to Lender:        General Electric Capital Corporation
                                 c/o GE Real Estate
                                 500 West Monroe Street
                                 Chicago, Illinois  60661
                                 Attention:   Asset Manager/Bluegreen-Big Cedar
                                 Telecopy:    (312) 876-2583
                                 E Mail:  dawn.sparr@gecapital.com

            with a copy to:      General Electric Capital Corporation
                                 c/o GE Real Estate
                                 500 West Monroe Street
                                 Chicago, Illinois  60661
                                 Attention:   Counsel
                                 Telecopy:    (312) 441-7872
                                 E Mail:  karen.lieberman@GECapital.com

            Any notice so addressed  and sent by United States mail or overnight
courier  shall  be  deemed  to be  given on the  earliest  of (1) when  actually
delivered,  (2) on the first  Business Day after  deposit with an overnight  air
courier service, or (3) on the third Business Day after

                                      -53-
<PAGE>

deposit in the United States mail, postage prepaid,  in each case to the address
of the intended addressee.  Any notice so delivered in person shall be deemed to
be given when receipted for by, or actually  received by Lender or Borrower,  as
the case may be.  If given by  telecopy,  a notice  shall be  deemed  given  and
received  when the  telecopy  is  transmitted  to the  party's  telecopy  number
specified  above  and  confirmation  of  complete  receipt  is  received  by the
transmitting  party during normal  business hours or on the next Business Day if
not confirmed during normal business hours, and an identical notice is also sent
simultaneously  by mail,  overnight  courier,  or personal delivery as otherwise
provided in this Section 12.1.  If given by  electronic  mail, a notice shall be
deemed  given  and  received  when the  electronic  mail is  transmitted  to the
recipient's electronic mail address specified above and electronic  confirmation
of receipt  (either by reply from the  recipient or by  automated  response to a
request for delivery  receipt) is received by the sending  party  during  normal
business  hours or on the  next  Business  Day if not  confirmed  during  normal
business hours,  and an identical  notice is also sent  simultaneously  by mail,
overnight  courier or personal  delivery as  otherwise  provided in this Section
12.1.  Except  for  telecopy  and  electronic  mail  notices  sent as  expressly
described  above, no notice hereunder shall be effective if sent or delivered by
electronic  means.  Either  party may  designate  a change of address by written
notice to the other by giving  at least ten (10) days  prior  written  notice of
such change of address.

12.2 Amendments and Waivers; References. No amendment or waiver of any provision
of the Loan  Documents  shall be  effective  unless in writing and signed by the
party  against whom  enforcement  is sought.  This  Agreement and the other Loan
Documents shall not be executed,  entered into, altered, amended, or modified by
electronic means. Without limiting the generality of the foregoing, the Borrower
and Lender hereby agree that the  transactions  contemplated  by this  Agreement
shall not be conducted by electronic means,  except as specifically set forth in
Section 12.1 regarding  notices.  Any reference to a Loan  Document,  whether in
this Agreement or in any other Loan Document,  shall be deemed to be a reference
to such  Loan  Document  as it may  hereafter  from  time  to  time be  amended,
modified, supplemented and restated in accordance with the terms hereof.

12.3  Limitation  on  Interest.  It is the  intention  of the parties  hereto to
conform strictly to applicable usury laws.  Accordingly,  all agreements between
Borrower  and Lender with  respect to the Loan are hereby  expressly  limited so
that in no event,  whether by reason of  acceleration  of maturity or otherwise,
shall the  amount  paid or agreed to be paid to Lender or  charged by Lender for
the  use,  forbearance  or  detention  of the  money  to be  lent  hereunder  or
otherwise,  exceed  the  maximum  amount  allowed  by law.  If the Loan would be
usurious under applicable law, then, notwithstanding anything to the contrary in
the Loan Documents:  (1) the aggregate of all  consideration  which  constitutes
interest under applicable law that is contracted for, taken,  reserved,  charged
or received under the Loan  Documents  shall under no  circumstances  exceed the
maximum  amount of interest  allowed by applicable  law, and any excess shall be
credited  on the Note by the holder  thereof  (or,  if the Note has been paid in
full, refunded to Borrower);  and (2) if maturity is accelerated by reason of an
election by Lender,  or in the event of any prepayment,  then any  consideration
which  constitutes  interest  may never  include  more than the  maximum  amount
allowed by applicable law. In such case,  excess interest,  if any, provided for
in the Loan Documents or otherwise,  to the extent  permitted by applicable law,
shall be  amortized,  prorated,  allocated  and spread  from the date of Advance
until payment in full so that the actual rate of interest is uniform through the
term hereof. If such amortization, proration,

                                      -54-
<PAGE>

allocation and spreading is not permitted under applicable law, then such excess
interest shall be canceled  automatically as of the date of such acceleration or
prepayment and, if theretofore  paid,  shall be credited on the Note (or, if the
Note has been paid in full,  refunded to Borrower).  The terms and provisions of
this Section 12.3 shall control and supersede  every other provision of the Loan
Documents. If at any time the laws of the United States of America permit Lender
to contract for, take, reserve, charge or receive a higher rate of interest than
is allowed by  applicable  state law  (whether  such  federal  laws  directly so
provide or refer to the law of any state),  then such federal laws shall to such
extent govern as to the rate of interest  which Lender may contract  for,  take,
reserve, charge or receive under the Loan Documents.

12.4 Invalid  Provisions.  If any  provision of any Loan  Document is held to be
illegal, invalid or unenforceable,  such provision shall be fully severable; the
Loan  Documents  shall be construed and enforced as if such illegal,  invalid or
unenforceable  provision  had never  comprised  a part  thereof;  the  remaining
provisions  thereof shall remain in full effect and shall not be affected by the
illegal,  invalid, or unenforceable provision or by its severance therefrom; and
in lieu of such illegal, invalid or unenforceable provision there shall be added
automatically as a part of such Loan Document a provision as similar in terms to
such illegal, invalid or unenforceable provision as may be possible to be legal,
valid and enforceable.

12.5  Reimbursement of Expenses.  Borrower shall pay all Costs.  Borrower shall,
upon request,  promptly  reimburse Lender for all amounts expended,  advanced or
incurred by Lender to collect the Note, or to enforce the rights of Lender under
this Agreement or any other Loan Document, or to defend or assert the rights and
claims of Lender  under the Loan  Documents  or with  respect  to the  Timeshare
Project (by  litigation  or other  proceedings),  which amounts will include all
Costs, court costs,  reasonable  attorneys' fees and expenses,  fees of auditors
and  accountants,  and  investigation  expenses  as may be incurred by Lender in
connection  with any such matters  (whether or not  litigation  is  instituted),
together  with interest at the Default Rate on each such amount from the date of
disbursement  until the date of  reimbursement  to  Lender,  all of which  shall
constitute part of the Loan and shall be secured by the Loan Documents.

12.6 Approvals;  Third Parties;  Conditions. All rights retained or exercised by
Lender to review or approve leases, contracts, plans, studies and other matters,
including  Borrower's and any other Person's  compliance  with the provisions of
Article 10 and  compliance  with laws  applicable  to  Borrower,  the  Timeshare
Project  or  any  other  Person,  are  solely  to  facilitate   Lender's  credit
underwriting,  and  shall not be deemed or  construed  as a  determination  that
Lender has passed on the adequacy  thereof for any other  purpose and may not be
relied upon by Borrower or any other Person.  This Agreement is for the sole and
exclusive  use of Lender and Borrower and may not be enforced,  nor relied upon,
by any Person other than Lender and Borrower.  All conditions of the obligations
of Lender  hereunder,  including the  obligation to make  Advances,  are imposed
solely and  exclusively  for the benefit of Lender,  its successors and assigns,
and no  other  Person  shall  have  standing  to  require  satisfaction  of such
conditions  or be entitled to assume that Lender will refuse to make Advances in
the  absence of strict  compliance  with any or all of such  conditions,  and no
other Person shall,  under any  circumstances,  be deemed to be a beneficiary of
such  conditions,  any and all of which may be freely waived in whole or in part
by Lender at any time in Lender's sole discretion.

                                      -55-
<PAGE>

12.7 Lender Not in Control;  No liability or Partnership.  None of the covenants
or other  provisions  contained in this Agreement  shall, or shall be deemed to,
give  Lender  the  right or power  to  exercise  control  over  the  affairs  or
management  of  Borrower,  the power of Lender  being  limited  to the rights to
exercise  the  remedies  referred  to in the Loan  Documents.  The  relationship
between  Borrower and Lender is, and at all times shall  remain,  solely that of
debtor and creditor. No covenant or provision of the Loan Documents is intended,
nor shall it be deemed or construed,  to create a  partnership,  joint  venture,
agency or common interest in profits or income between Lender and Borrower or to
create an equity in the Timeshare Project in Lender.  Lender neither  undertakes
nor assumes any  responsibility  or duty to Borrower or to any other Person with
respect to the Lockbox Agent, the Servicer, the Custodian, the Timeshare Project
or  the  Loan,  except  as  expressly  provided  in  the  Loan  Documents;   and
notwithstanding  any other provision of the Loan  Documents:  (1) Lender is not,
and shall not be construed as, a partner,  joint venturer,  alter ego,  manager,
controlling  person or other  business  associate or  participant of any kind of
Borrower or its stockholders, members, or partners and Lender does not intend to
ever assume such status; (2) Lender shall in no event be liable for (a) any acts
or omissions of any of the Lockbox  Agent,  the  Servicer or the  Custodian  and
Borrower hereby releases  Lender from any claims,  losses,  damages or liability
incurred by Borrower by reason of any such acts or omissions,  or (b) any Debts,
expenses or losses  incurred or sustained by Borrower;  and (3) Lender shall not
be deemed  responsible for or a participant in any acts,  omissions or decisions
of Borrower or its  stockholders,  members,  or  partners.  Lender and  Borrower
disclaim  any  intention to create any  partnership,  joint  venture,  agency or
common  interest in profits or income between Lender and Borrower,  or to create
any equity in the Timeshare  Project in Lender,  or any sharing of  liabilities,
losses, costs or expenses.

12.8 Time of the Essence. Time is of the essence with respect to this Agreement.

12.9  Successors and Assigns.  This Agreement shall be binding upon and inure to
the benefit of Lender and Borrower and the respective  permitted  successors and
assigns of Lender and  Borrower,  provided  that neither  Borrower nor Guarantor
shall, without the prior written consent of Lender, assign any rights, duties or
obligations  hereunder  and that Lender  shall not assign any rights,  duties or
obligations hereunder other than in accordance with Section 9.4 above.

12.10 Renewal, Extension,  Rearrangement,  Loan Outplacement.  All provisions of
the Loan  Documents  shall  apply with equal  effect to each and all  promissory
notes and  amendments  thereof  hereinafter  executed  which in whole or in part
represent a renewal,  extension,  increase  or  rearrangement  of the Loan.  For
portfolio management purposes,  at Lender's expense, at any time during the term
of the Loan Lender may elect to divide the Loan into two or more separate  loans
evidenced  by  separate  promissory  notes  so long  as the  payment  and  other
obligations  of Borrower are not  effectively  increased or otherwise  modified.
Borrower agrees to cooperate with Lender and to execute such documents as Lender
reasonably  may request to effect such  division of the Loan,  provided that the
foregoing do not result in any increased  obligations to Borrower under the Loan
Documents or decrease of Borrower's rights thereunder.

In addition,  Borrower acknowledges that Lender and its permitted successors and
assigns may without notice to or consent from Borrower  participate  the Loan to
one or more  investors  or  otherwise  sell the  Loan or  interests  therein  to
investors,   subject   to  the   provisions   of  Section   9.4  hereof   ("Loan
Outplacement"). Borrower shall cooperate with Lender in effecting any such

                                      -56-
<PAGE>

Loan Outplacement and shall cooperate and use all reasonable  efforts to satisfy
the market  standards  to which the Lender  customarily  adheres or which may be
reasonably  required by any potential  participant or purchaser  involved in any
Loan Outplacement,  at no cost to Borrower or Borrower Parties.  Notwithstanding
anything to the contrary  herein or otherwise,  Borrower  shall be reimbursed by
Lender for its reasonable  costs incurred in connection with Loan  Outplacement,
including  without  limitation,  its  legal  and  other  professional  fees  and
expenses.  Borrower shall provide such information and documents relating to the
Borrower  and  the  Timeshare  Project  as  Lender  may  reasonably  request  in
connection  with  such Loan  Outplacement.  In  addition,  Borrower  shall  make
available  to Lender,  at Lender's  cost and expense if the  information  is not
otherwise  required  to be  provided  to Lender  under the Loan  Documents,  all
information concerning the property, its business and its operations that Lender
may  reasonably  request.  Lender  shall  be,  subject  to  the  Confidentiality
Agreement in connection  with the consumer  information,  permitted to share all
such  information  with  the  potential  participants,   investors,  purchasers,
accounting firms, law firms and other  third-party  advisory firms involved with
the Loan and the Loan  Documents  or the  applicable  Loan  Outplacement.  It is
understood that the information provided by Borrower to Lender may ultimately be
incorporated  into the offering or sale documents for the Loan  Outplacement and
thus various  investors,  participants or purchasers may also see some or all of
the  information.  Lender  and  all of  the  aforesaid  potential  participants,
purchasers,  advisors  and  professional  firms shall be entitled to rely on the
information  supplied  by or on  behalf of  Borrower.  Borrower  also  agrees to
execute any  amendment of or  supplement  to this  Agreement  and the other Loan
Documents  as  Lender  may  reasonably  request  in  connection  with  any  Loan
Outplacement,  provided that such  amendment or  supplement  does not change the
economic  terms of the Loan or result in any increased  obligations  to Borrower
under the Loan Documents or decrease of Borrower's rights thereunder.

12.11  Waivers.  No course  of  dealing  on the part of  Lender,  its  officers,
employees,  consultants  or  agents,  nor any  failure  or delay by Lender  with
respect to exercising  any right,  power or privilege of Lender under any of the
Loan Documents, shall operate as a waiver thereof.

12.12 Cumulative Rights.  Rights and remedies of Lender under the Loan Documents
shall be cumulative,  and the exercise or partial  exercise of any such right or
remedy shall not preclude the exercise of any other right or remedy.

12.13  Singular  and  Plural.  Words used in this  Agreement  and the other Loan
Documents  in the  singular,  where the context so  permits,  shall be deemed to
include the plural and vice versa.  The  definitions of words in the singular in
this Agreement and the other Loan Documents  shall apply to such words when used
in the plural where the context so permits and vice versa.

12.14  Phrases.  When used in this Agreement and the other Loan  Documents,  the
phrase  "including"  shall  mean  "including,  but not  limited  to," the phrase
"satisfactory  to Lender"  shall  mean "in form and  substance  satisfactory  to
Lender in all respects,"  the phrase "with  Lender's  consent" or "with Lender's
approval" shall mean such consent or approval at Lender's sole  discretion,  and
except where expressly  provided  otherwise  herein,  the phrase  "acceptable to
Lender" shall mean "acceptable to Lender at Lender's sole discretion."

                                      -57-
<PAGE>

12.15  Exhibits  and  Schedules.  The exhibits  and  schedules  attached to this
Agreement  are  incorporated  herein  and  shall  be  considered  a part of this
Agreement for the purposes stated herein.

12.16 Titles of Articles,  Sections and  Subsections.  All titles or headings to
articles,  sections,  subsections  or other  divisions of this Agreement and the
other  Loan  Documents  or the  exhibits  hereto  and  thereto  are only for the
convenience  of the  parties  and shall not be  construed  to have any effect or
meaning  with  respect  to  the  other  content  of  such  articles,   sections,
subsections or other divisions,  such other content being  controlling as to the
agreement between the parties hereto.

12.17  Promotional  Material.  Subject to  Borrower's  reasonable  prior written
approval in advance of issuance, Lender may issue press releases, advertisements
and other promotional  materials in connection with Lender's own promotional and
marketing  activities,  and  describing  the Loan in general  terms and Lender's
participation  in the Loan.  All  references  to Lender  contained  in any press
release,  advertisement  or  promotional  material  issued by Borrower  shall be
approved in writing by Lender in advance of issuance.

12.18  Survival.  All  of  the  representations,   warranties,   covenants,  and
indemnities  hereunder,  and under the  indemnification  provisions of the other
Loan Documents,  shall survive the repayment in full of the Loan and the release
of the liens evidencing or securing the Loan, and shall survive the transfer (by
sale, foreclosure, conveyance in lieu of foreclosure or otherwise) of any or all
right, title and interest in and to the Timeshare Project to any party,  whether
or not an Affiliate of Borrower.

12.19 WAIVER OF JURY TRIAL. TO THE MAXIMUM EXTENT PERMITTED BY LAW, BORROWER AND
LENDER HEREBY  KNOWINGLY,  VOLUNTARILY  AND  INTENTIONALLY  WAIVE THE RIGHT TO A
TRIAL BY JURY IN RESPECT OF ANY LITIGATION  BASED HEREON,  ARISING OUT OF, UNDER
OR IN CONNECTION  WITH THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT,  OR ANY COURSE
OF CONDUCT,  COURSE OF DEALING,  STATEMENT (WHETHER VERBAL OR WRITTEN) OR ACTION
OF EITHER  PARTY OR ANY EXERCISE BY ANY PARTY OF THEIR  RESPECTIVE  RIGHTS UNDER
THE LOAN  DOCUMENTS OR IN ANY WAY RELATING TO THE LOAN OR THE TIMESHARE  PROJECT
(INCLUDING,  WITHOUT LIMITATION, ANY ACTION TO RESCIND OR CANCEL THIS AGREEMENT,
AND ANY CLAIM OR DEFENSE ASSERTING THAT THIS AGREEMENT WAS FRAUDULENTLY  INDUCED
OR IS OTHERWISE  VOID OR  VOIDABLE).  THIS WAIVER IS A MATERIAL  INDUCEMENT  FOR
LENDER TO ENTER THIS AGREEMENT.

12.20 Punitive or  Consequential  Damages;  Waiver.  Neither Lender nor Borrower
shall be  responsible  or liable to the  other or to any  other  Person  for any
punitive, exemplary or consequential damages which may be alleged as a result of
the Loan or the transaction  contemplated hereby,  including any breach or other
default by any party hereto.  Borrower represents and warrants to Lender that as
of the Closing Date neither Borrower nor Guarantor has any claims against Lender
in connection with the Loan.

                                      -58-
<PAGE>

12.21 Governing Law. The Loan was negotiated by Lender in the State of Illinois,
accepted by Lender in the State of Illinois,  which state Borrower  agrees has a
substantial  relationship to Lender and Borrower and to the transaction embodied
hereby,  in all  respects,  including,  without  limiting the  generality of the
foregoing,  matters of construction,  validity,  enforceability and performance.
The  Loan and the  obligations  arising  hereunder  shall be  governed  by,  and
construed in accordance  with,  the laws of the State of Illinois  applicable to
contracts made and performed in such State  (without  regard to the conflicts of
law rules  thereof)  and any  applicable  law of the United  States of  America,
except  that at all times  the  provisions  for the  creation,  perfection,  and
enforcement  of the  liens  and  security  interests  created  pursuant  to this
Agreement  and the other  Loan  Documents  shall be  governed  by and  construed
according to the law of the state,  country or other  jurisdiction  in which the
Collateral is located, it being understood that, to the fullest extent permitted
by law of such  state,  country or other  jurisdiction,  the law of the State of
Illinois shall govern the validity and the  enforceability of all Loan Documents
and obligations arising hereunder or thereunder. To the fullest extent permitted
by law,  Borrower hereby  unconditionally  and  irrevocably  waives any claim to
assert  that the law of any  other  jurisdiction  governs  the Loan and the Loan
Documents,  and the  Loan  Documents  shall  be  governed  by and  construed  in
accordance with the laws of the State of Illinois.

12.22 Entire  Agreement.  This Agreement and the other Loan Documents embody the
entire agreement and understanding between Lender and Borrower and supersede all
prior agreements and understandings between such parties relating to the subject
matter hereof and thereof,  including any  commitment  letter (if any) issued by
Lender with  respect to the Loan.  Accordingly,  the Loan  Documents  may not be
contradicted  by  evidence  of  prior,   contemporaneous,   or  subsequent  oral
agreements of the parties.  There are no unwritten oral  agreements  between the
parties. If any conflict or inconsistency  exists between this Agreement and any
of the other Loan Documents, the terms of this Agreement shall control.

12.23  Counterparts.  This  Agreement may be executed in multiple  counterparts,
each of which shall  constitute an original,  but all of which shall  constitute
one document.

12.24 Limitation on Liability of Borrower's,  Guarantor's and Lender's Officers,
Employees,  Etc. Any obligation or liability  whatsoever of Lender,  Borrower or
Guarantor  which may arise at any time  under this  Agreement  or any other Loan
Document shall be satisfied, if at all, out of the assets of Lender, Borrower or
Guarantor,  as  applicable,  only.  No such  obligation  or  liability  shall be
personally binding upon, nor shall resort for the enforcement thereof be had to,
the  property  of any  of  Lender's,  Borrower's  or  Guarantor's  shareholders,
directors,  officers, employees or agents, regardless of whether such obligation
or liability is in the nature of contract, tort or otherwise.

12.25  Venue.  BORROWER  HEREBY  CONSENTS  TO THE  JURISDICTION  OF ANY STATE OR
FEDERAL  COURT  LOCATED  WITHIN  THE  COUNTY  OF COOK,  STATE OF  ILLINOIS,  AND
IRREVOCABLY  AGREES  THAT,   SUBJECT  TO  LENDER'S  ELECTION,   ALL  ACTIONS  OR
PROCEEDINGS  ARISING  OUT OF OR  RELATING  TO THIS  AGREEMENT  OR THE OTHER LOAN
DOCUMENTS  SHALL BE  LITIGATED IN SUCH COURTS.  BORROWER  EXPRESSLY  SUBMITS AND
CONSENTS TO THE  JURISDICTION OF THE AFORESAID  COURTS AND WAIVES ANY DEFENSE OF
FORUM NON CONVENIENS. BORROWER HEREBY WAIVES PERSONAL SERVICE OF

                                      -59-
<PAGE>

ANY AND ALL PROCESS AND AGREES THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE UPON
BORROWER BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, ADDRESSED TO
BORROWER,  AT THE ADDRESS SET FORTH IN THIS  AGREEMENT AND SERVICE SO MADE SHALL
BE COMPLETE TEN (10) BUSINESS DAYS AFTER THE SAME HAS BEEN POSTED.

            [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

                                      -60-
<PAGE>

            The parties  hereto have executed this  Agreement or have caused the
same to be  executed  by their duly  authorized  representatives  as of the date
first above written.

                                       BORROWER:

                                       BLUEGREEN/BIG CEDAR VACATIONS, LLC,
                                       a Delaware limited liability company

                                       By:
                                             -----------------------------------
                                             Anthony M. Puleo
                                             Vice President and Treasurer

                                       LENDER:

                                       GENERAL ELECTRIC CAPITAL CORPORATION,
                                       a Delaware corporation

                                       By
                                             -----------------------------------
                                       Name
                                             -----------------------------------
                                       Its
                                             -----------------------------------

                                      -61-
<PAGE>

                                  Schedule 1.1

                               ADVANCE CONDITIONS

Part A  Conditions To Initial Advance
Part B  General Conditions
Part C  Loan Advances

                      PART A. CONDITIONS TO INITIAL ADVANCE

            The  initial  Advance  of the Loan  shall  be  subject  to  Lender's
receipt,  review,  approval and/or confirmation of the following,  at Borrower's
cost and expense  (other than the cost of obtaining  FICO scores),  each in form
and content satisfactory to Lender in its sole discretion:

            1. The Loan  Documents,  executed  by Borrower  and, as  applicable,
Guarantor and each other party thereto.

            2.  The  Commitment  Fee  of  $225,000.00  in  cash  or  immediately
available funds.

            3. A copy of  Borrower's  Owner's  title  policy  for the  Timeshare
Project and a mortgagee  title  insurance  policy or a pro forma mortgagee title
policy for a Timeshare  Interest in accordance with clause (j) of the definition
of Eligible Note Receivable.

            4. All  documents  evidencing  the  formation,  organization,  valid
existence,  good  standing,  and  due  authorization  of and  for  Borrower  and
Guarantor and the authorization for the execution,  delivery, and performance of
the Loan Documents by Borrower and Guarantor.

            5. Legal  opinions  issued by counsel for  Borrower  and  Guarantor,
opining  as to the due  organization,  valid  existence  and  good  standing  of
Borrower  and  Guarantor,  and  the  due  authorization,   execution,  delivery,
enforceability  and validity of the Loan Documents with respect to, Borrower and
Guarantor;  that the Loan, as reflected in the Loan Documents,  is not usurious;
to the extent that Lender is not otherwise satisfied, that the Timeshare Project
and its use is in full compliance with all legal requirements and that the Notes
Receivable  are in  compliance  with all  Consumer  Laws;  and as to such  other
matters as Lender and Lender's counsel reasonably may specify.

            6. Current UCC searches for Borrower and Guarantor.

            7.  Evidence  of  insurance  as  required  by  this  Agreement,  and
conforming in all respects to the requirements of Lender.

            8. A current "as built"  survey of the Timeshare  Project,  dated or
updated to a date not earlier  than  thirty (30) days prior to the date  hereof,
certified to Lender,  prepared by a licensed  surveyor  acceptable to Lender and
such  title  insurer,   and  conforming  to  Lender's  current  standard  survey
requirements.

                                     1.1/1
<PAGE>

            9. A current  engineering  report or  architect's  certificate  with
respect to the Timeshare Project and the Plans,  covering,  among other matters,
inspection  of heating  and cooling  systems,  roof and  structural  details and
showing  no  failure  of  compliance  with  building  plans and  specifications,
applicable  legal  requirements  (including  requirements  of the Americans with
Disabilities Act) and fire, safety and health standards. As requested by Lender,
such  report  shall  also  include  an  assessment  of the  Timeshare  Project's
tolerance for earthquake and seismic activity.

            10. A current Site Assessment.

            11. A copy of the  Management  Agreement for the Timeshare  Project,
certified by Borrower as being true, correct and complete.

            12. Evidence that the Timeshare Project Association,  Facilities and
the  operation  thereof  comply  with  all  legal  requirements,  including  (if
applicable)  that all material  requisite  certificates  of occupancy,  building
permits, and other licenses, certificates, approvals or consents required of any
Governmental  Authority have been issued without  variance or condition and that
there is no litigation, action, citation, injunctive proceedings, or like matter
pending or  threatened  with respect to the validity of such  matters.  Borrower
shall furnish Lender with a zoning letter from the applicable  municipal  agency
and utility  letters from  applicable  service  providers  or other  evidence of
availability of utilities.

            13. No  condemnation  or adverse  zoning or usage change  proceeding
shall have  occurred or, to the best of  Borrower's  knowledge,  shall have been
threatened against the Timeshare  Project;  the Timeshare Project shall not have
suffered any  significant  damage by fire or other  casualty  which has not been
repaired;  no law, regulation,  ordinance,  moratorium,  injunctive  proceeding,
restriction,  litigation, action, citation or similar proceeding or matter shall
have been enacted, adopted, or, to the best of Borrower's knowledge,  threatened
by any  governmental  authority,  which would  have,  in  Lender's  judgment,  a
material adverse effect on Borrower.

            14.  All  fees  and  commissions  payable  to real  estate  brokers,
mortgage brokers,  or any other brokers or agents in connection with the Loan or
the  acquisition of the Timeshare  Project have been paid, if any, such evidence
to be accompanied by any waivers or indemnifications deemed reasonably necessary
by Lender.

            15. Payment of Lender's Costs in underwriting  (other than the costs
of obtaining FICO scores with respect to Purchasers).

            16. Estoppel  certificates  and  subordination,  non disturbance and
attornment agreements, as reasonably requested by Lender.

            17.  Such  credit  checks,   background   investigations  and  other
information  required by Lender regarding Borrower,  each Borrower Party and any
other  Person  holding a direct or  indirect  interest  in  Borrower in order to
confirm compliance with Article 10 of this Agreement.

                                     1.1/2
<PAGE>

            18.  Such  other  documents  or items as Lender or its  counsel  may
reasonably require.

            19.  The  representations  and  warranties  contained  in this  Loan
Agreement and in all other Loan Documents are true and correct.

            20. No Potential  Default or Event of Default shall have occurred or
exist.

            21.  Lender  shall  have  received  satisfactory  evidence  that all
security interests and liens granted to Lender pursuant to this Agreement or the
other Loan  Documents  have been duly  perfected and  constitute  first priority
liens on the Collateral.

            22.  Lender shall have received (i)  satisfactory  evidence that the
Borrower  has  obtained  all  required  consents  and  approvals  of all Persons
including all requisite Governmental Authorities, to the execution, delivery and
performance of this Agreement and the other Loan Documents and the  consummation
of the  related  transactions  or  (ii) an  officer's  certificate  in form  and
substance  reasonably  satisfactory to Lender affirming that no such consents or
approvals are required.

            23. Lender shall have completed its business and legal due diligence
with results  satisfactory to Lender,  including  Lender's  receipt,  review and
approval  of all items  shown on the Closing  Checklist  delivered  by Lender to
Borrower  including  the  consumer  law audit and Fair  Housing Act  searches as
approved by Lender and its counsel.

            24. Lender shall have verified that the  Association's  reserves for
replacement are at least equal to $650,000.00.

                   PART B. GENERAL CONDITIONS TO LOAN ADVANCES

            Each  Advance of the Loan  following  the initial  Advance  shall be
subject  to  Lender's  receipt,  review,  approval  and/or  confirmation  of the
following,  each  in  form  and  content  satisfactory  to  Lender  in its  sole
discretion:

            1.  There  shall  exist no  Potential  Default  or Event of  Default
(currently and after giving effect to the requested Advance).

            2.  The  representations  and  warranties  contained  in  this  Loan
Agreement and in all other Loan Documents are true and correct as of the date of
the requested Advance.

            3. Such Advance shall be secured by the Loan Documents, subject only
to the  Permitted  Exceptions,  as  evidenced  by title  insurance  endorsements
satisfactory to Lender.

            4.  Borrower  shall have paid  Lender's Fees and Costs in connection
with  such  Advance,  but  excluding  the  cost of  obtaining  FICO  scores  for
Purchasers and the insertion fee, if applicable, for the blanket title insurance
policies.

            5. No materially adverse change shall have occurred in the financial
condition of Borrower or Guarantor, or the Timeshare Project.

                                     1.1/3
<PAGE>

            6. Borrower shall have delivered to Lender all information requested
by Lender  pursuant to Article 10 and all Interest  Holder  certifications  then
required under Section 4.1.

            7.  No  condemnation  or  Material  Adverse  Effect,  as  reasonably
determined by Lender, zoning or usage change proceeding shall have occurred; the
Timeshare  Project shall not have suffered any damage by fire or other  casualty
which has not been  repaired or is not being  restored in  accordance  with this
Agreement;  no law, regulation,  ordinance,  moratorium,  injunctive proceeding,
restriction,  litigation, action, citation or similar proceeding or matter shall
have  been  enacted,  or  adopted,  or,  to the  best of  Borrower's  knowledge,
threatened  by  any  Governmental  Authority,  which  would  have,  in  Lender's
reasonable judgment, a Material Adverse Effect.

            Each request for and acceptance of a Loan Advance shall be deemed to
constitute,  as of the date of such request or acceptance,  a representation and
warranty by Borrower that the  statements  contained in paragraphs 1 and 2 above
are true and correct.

            8. Advances of the Loan shall be subject to Lender's  receipt of the
following:

                  (a)  Request  for  Advance  (in the form of  Exhibit  E to the
Agreement) listing all Timeshare Interests to be financed;

                  (b) A current aging report for the Eligible  Notes  Receivable
to be pledged in connection with the requested Advance; and

                  (c) Such  additional  information  as  Lender  may  reasonably
require.

                  (d) Lender  shall have  received a  Custodian  Certificate  in
substance satisfactory to Lender.

            9.  Custodian  shall have  received at least five (5) Business  Days
prior to the requested  funding date all documents,  instruments and information
as provided for in the Collateral Package Items in the Custodial Agreement.

            10.  Custodian  shall have  delivered  to Lender its  monthly  audit
report  within the time period set forth in the Custodial  Agreement  (except in
the event of a Force Majeure Delay).

            11. All documents to be delivered to Lender should be sent to:

                  U.S. Bank National Association
                  1133 Rankin Street, Suite 100
                  St. Paul, MN 55116
                  Attention:  Account Management, Bluegreen/Big Cedar
                  Telecopy:  (651) 695-6102

                                     1.1/4
<PAGE>

                                  Schedule 2.3

                FORM OF REASSIGNMENT OF PURCHASE MONEY MORTGAGES
                                ("Reassignment")

            REASSIGNMENT OF PURCHASE MONEY MORTGAGES ("Reassignment")

Dated: _________________________

Grantor:  (Assignor)  General  Electric  Capital  Corporation,  500 West  Monroe
Street, Chicago, Illinois 60661

Grantee:  (Assignee)  Bluegreen/Big  Cedar  Vacations,  LLC, 4960 Conference Way
North, Suite 100, Boca Raton, FL 33431

            WHEREAS, the Loan and Security Agreement by and between Assignor and
Assignee  dated  April  16,  2007  (the  "Loan  Agreement")  provides  that upon
repayment of any of the Financed Notes  Receivable held as collateral  under the
Assignment,  Assignor will reassign its collateral  assignments of such Financed
Notes Receivable and the Purchase Documents and Mortgages related thereto to the
Borrower.  Capitalized  terms used herein and not defined shall have the meaning
set forth for them in the Loan Agreement.

      For good and valuable consideration,  the receipt and sufficiency of which
is  hereby  acknowledged,  General  Electric  Capital  Corporation,  a  Delaware
Corporation  ("Assignor"),  as  collateral  assignee  of  the  mortgages  dated,
recorded  and  more  particularly  described  in  Schedule  A,  attached  hereto
("Mortgages")  affecting  property located at the resort in the County of Taney,
State of Missouri having the following legal description:

      Timeshare  Interest(s)  consisting  of an undivided  1/52nd (if Annual) OR
      1/104th  (if  Biennial)  Interest(s)  one  fifty-second  (1/52)  tenant in
      common,  undivided  interest,  as a fee  simple  estate,  in  each  of the
      below-described  Condominium  Unit(s),  in the Big Cedar  Wilderness  Club
      Condominium,  according to the  Declaration of Condominium  and Bylaws for
      The Big Cedar Wilderness Club  Condominium,  as recorded in Book 396, Page
      3727-3828 of the Office of the Recorder of Deeds, Taney County,  Missouri,
      as such  Declaration may now or hereafter be amended (the  "Declaration");
      together  with the  right to  occupy  in the  respective  season  in every
      calendar  year (if Annual) OR every  other  calendar  year (if  Biennial),
      pursuant to the Declaration,  the foregoing  Condominium Unit(s), and each
      comparable  Unit  which is subject to the  Flexible  Use Plan,  during any
      Flexible  Unit  Week(s)  within  that  same  season,  and  subject  to the
      provisions  of  the  Flexible  Use  Plan,  the   then-current   Rules  and
      Regulations  for the  Resort  and the  Declaration;  the  foregoing  being
      conveyed together with a one fifty-second (1/52) tenant in common interest
      in the  Allocated  Interests of such Unit(s) (the same being the undivided
      interest in the Common Elements, the Common

                                     2.3/1
<PAGE>

      Expense  Liability,  and  votes in the  Association  as  allocated  to the
      Unit(s) pursuant to the terms of the Declaration).

            An Annual  Unit  Week  allows  occupancy  and use of a Unit each and
            every  year.  An  Annual  Unit  Week  is  designated  with  an  "F,"
            indicating  a  Full  Timeshare  Interest.   A  Biennial  Unit  Week,
            indicating one-half of a Full Timeshare  Interest,  allows occupancy
            only  during Odd  Numbered  Years (and such Unit Week is  designated
            with an "O") or only during Even Numbered  Years (and such Unit Week
            is designated with an "E").

hereby  reconveys,  reassigns,  transfers and sets over to  Bluegreen/Big  Cedar
Vacations,  LLC, a Delaware limited liability company  ("Assignee'),  all right,
title and  interest  of  Assignor  in the  Mortgages,  and all right,  title and
interest in and to the  promissory  note or notes  referred to in said Mortgages
referred to in Schedule A (the "Notes"),  without  recourse and without warranty
of any kind, and all documents and instruments  securing said Notes,  whether or
not  referenced  in Schedule A, and all monies,  proceeds and awards,  including
without  limitation,  interest,  due or to become due  thereon  or with  respect
thereto, as set forth in the Loan Agreement.

Taney County, MO

      IN WITNESS  WHEREOF,  Assignor  has caused this  Reassignment  of Purchase
Money Mortgages to be duly executed on the date first above written.

                                      General Electric Capital Corporation,
                                      a Delaware corporation

                                      By:
                                             ------------------------------
                                      Name:
                                             ------------------------------
                                      Title:
                                             ------------------------------

                                     2.3/2
<PAGE>

STATE OF                )
                        ):SS
COUNTY OF               )

The foregoing instrument was acknowledged before me on _______________,  2007 by
_________________________,  as  _________________________  of  General  Electric
Capital Corporation,  a Delaware  corporation,  who is personally known to me or
has produced _________________________ as identification.

                                        ----------------------------
                                        Notary Public
                                        Print Name:  _______________________

                                        (AFFIX NOTARIAL SEAL)

Prepared by and After Recording Return to:
Janet Konstand
Bluegreen Corporation - Mortgage Funding
4960 Conference Way North, Suite 100
Boca Raton, FL 33431

Taney County, MO

                                     2.3/3
<PAGE>

                                  [Exhibit "1"]

                                  [Schedule A]

            REASSIGNMENT OF CONTRACTS, NOTES RECEIVABLE AND MORTGAGES

<TABLE>
<CAPTION>
                                                                                   Mortgage
             Unit                                  Mortgage        Mortgage        Recording     Recording      Recording
Name        Number      Week      Subdivision       Amount       Document No.        Date          Book           Page
----        ------      ----      -----------       ------       ------------        -----         ----           ----
<S>         <C>        <C>         <C>             <C>            <C>              <C>           <C>            <C>

</TABLE>

                                     2.3/4
<PAGE>

                                  Schedule 4.1

                             ORGANIZATIONAL MATTERS

A.    Borrower's Organizational Structure.

      See Attached Organizational Chart.

B.    Organizational Information: (Borrower and each Borrower Party).

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
                                  State of
                              Incorporation or             Type of          State Organizational       Federal
       Legal Name*              Organization               Entity                  ID No.**           Tax ID No.
-----------------------------------------------------------------------------------------------------------------
<S>                             <C>                   <C>                        <C>                  <C>
1.  Bluegreen/Big Cedar         Delaware              limited liability            3220565            65-1016052
    Vacations, LLC                                    company
-----------------------------------------------------------------------------------------------------------------
2.  Bluegreen                   Massachusetts         corporation                    N/A              03-0300793
    Corporation
-----------------------------------------------------------------------------------------------------------------
3.  Big Cedar, L.L.C.           Missouri              limited liability           LC0034424           43-1647673
                                                      company
-----------------------------------------------------------------------------------------------------------------
4.  Bluegreen Vacations         Florida               corporation                P93000051653         65-0433722
    Unlimited, Inc.
-----------------------------------------------------------------------------------------------------------------
</TABLE>

*     As it appears in  official  filings in the state of its  incorporation  or
      organization.

**    If none issued by applicable state of  organization/incorporation,  insert
      "none issued."

C.    Location Information.

1.    Borrower:

<TABLE>
<S>                                            <C>
      a.    Chief Executive Office:            4960 Conference Way North, Suite 100
                                               Boca Raton, FL  33431
                                               Attention:  Anthony M. Puleo
                                               Telecopy:   (561) 912-8123
                                               E Mail: tony.puleo@bluegreencorp.com

      b.    Location of any prior Chief        ______________________________________________
            Executive Office (during last      ______________________________________________
            5 years):                          ______________________________________________

      c.    Other Office Location:             ______________________________________________
                                               ______________________________________________
                                               ______________________________________________

d. Location of Collateral:                     At the Timeshare Project and at the offices of
                                               U.S. Bank National Association, as Custodian
</TABLE>

                                     4.1/1
<PAGE>

2.    Borrower Parties (Chief Executive
      Office):

<TABLE>
<S>                                            <C>
      a.    Bluegreen Corporation              4960 Conference Way North, Suite 100
                                               Boca Raton, FL  33431
                                               Attention:  Anthony M. Puleo
                                               Telecopy:   (561) 912-8123
                                               E Mail: tony.puleo@bluegreencorp.com

      b.    Big Cedar, L.L.C.:                 2500 E. Kearney
                                               Springfield, MO 65898

      c.    Bluegreen Vacations                4960 Conference Way North, Suite 100
            Unlimited, Inc.                    Boca Raton, FL  33431
                                               Attention:  Anthony M. Puleo
                                               Telecopy:   (561) 912-8123
                                               E Mail: tony.puleo@bluegreencorp.com
</TABLE>

                                     4.1/2
<PAGE>

                        ORGANIZATIONAL CHART OF BORROWER

|-------------------------------|             |-------------------------------|
|    Bluegreen Corporation,     |             |        Three Johns Company,   |
|  a Massachusetts corporation  |             |       a Missouri corporation  |
|------------------------------ |             |-------------------------------|
                \                                              /
                 \                                            /
                  \ 100%                                100% /
                   \                                        /
                    \                                      /
      |-----------------------------|        |------------------------------|
      |     Bluegreen Vacations     |        |    Big Cedar, L.L.C.,        |
      |      Unlimited, Inc.,       |        | a Missouri limited liability |
      |    a Florida corporation    |        |           company            |
      |-----------------------------|        |------------------------------|
                        \                              /
                         \                            /
                          \ 51%                  49% /
                           \                        /
                            \                      /
                         |-------------------------------|
                         |                               |
                         |          Borrower             |
                         |                               |
                         |-------------------------------|
                                        |
                                        |
                                        |100%
                                        |
                                        |
                         |-------------------------------|
                         |    Big Cedar JV Interiors,    |
                         |             LLC,              |
                         | A Delaware limited liability  |
                         |            company            |
                         |-------------------------------|

                                     4.1/3
<PAGE>

                                  Schedule 4.13

                 Contracts with Affiliates/Approved Transactions

1.    Marketing  and  Promotions  Agreement,  dated as of June 16, 2000,  by and
      between Big Cedar,  L.L.C., Bass Pro, Inc., Bluegreen Vacations Unlimited,
      Inc. and Bluegreen/Big Cedar Vacations, LLC.

2.    Advertising Space Receipt and Confirmation Agreement, dated as of June 16,
      2000,  by and  between  Bass  Pro,  Inc.,  BPS  Catalog,  L.P.,  Bluegreen
      Vacations Unlimited, Inc. and Bluegreen/Big Cedar Vacations, LLC.

3.    License and Concession Agreement, dated June 16, 2000, by and between Bass
      Pro, Inc., Bass Pro Outdoor World,  L.L.C.,  World Wide  Sportsman,  Inc.,
      Bluegreen  Vacations  Unlimited,  Inc. and Bluegreen/Big  Cedar Vacations,
      LLC.

4.    Mailing List  Agreement,  dated as of June 16,  2000,  by and between Bass
      Pro, Inc., Bass Pro Trademarks,  L.L.C., Bluegreen Corporation,  Bluegreen
      Vacations Unlimited, Inc. and Bluegreen/Big Cedar Vacations, LLC.

5.    Security  Agreement,  dated as of June 16, 2000,  by and between Bass Pro,
      Inc., Bass Pro Trademarks, L.L.C., Bluegreen Vacations Unlimited, Inc. and
      Bluegreen/Big Cedar Vacations, LLC.

6.    Mailing  List  Agreement,  dated as of June 16,  2000,  by and between Big
      Cedar, L.L.C., Bluegreen Corporation,  Bluegreen Vacations Unlimited, Inc.
      and Bluegreen/Big Cedar Vacations, LLC.

7.    Trademark  License  Agreement,  dated as of June 16, 2000,  by and between
      Bass  Pro,  Inc.,  Bass Pro  Trademarks,  L.L.C.,  Bluegreen  Corporation,
      Bluegreen  Vacations  Unlimited,  Inc. and Bluegreen/Big  Cedar Vacations,
      LLC.

8.    Trademark License Agreement, dated as of June 16, 2000, by and between Big
      Cedar, L.L.C., Bluegreen Corporation,  Bluegreen Vacations Unlimited, Inc.
      and Bluegreen/Big Cedar Vacations, LLC.

9.    Commercial  Lease,  dated June 16, 2000, by and between Big Cedar,  L.L.C.
      and Bluegreen/Big Cedar Vacations, LLC. (Sales Center).

10.   Commercial  Lease,  dated June 16, 2000, by and between Big Cedar,  L.L.C.
      and Bluegreen/Big Cedar Vacations, LLC. (Cabin Fever).

11.   Administrative  Services  Agreement,  dated  as of June 16,  2000,  by and
      between  Bluegreen/Big  Cedar  Vacations,   LLC  and  Bluegreen  Vacations
      Unlimited, Inc.

12.   Easement  Agreement,  dated as of June 15, 2000, by and between Big Cedar,
      L.L.C., Three Johns Company,  Bluegreen/Big Cedar Vacations,  LLC. and Big
      Cedar Resort Club Owners Association, Inc.

                                     4.13/1
<PAGE>

13.   Intercreditor Agreement, dated as of June 16, 2000, by and among Bass Pro,
      Inc., Bass Pro Trademarks,  L.L.C.,  Bluegreen Vacations Unlimited,  Inc.,
      Bluegreen/Big  Cedar  Vacations,  LLC and Fleet Retail  Finance  Inc.,  as
      Agent.

14.   Non-Disturbance  Agreement,  dated  June 16,  2000,  by and  among  Finova
      Capital Corporation, Bluegreen/Big Cedar Vacations, LLC., Big Cedar Resort
      Club Owners  Association,  Inc., Big Cedar, L.L.C. and Bluegreen Vacations
      Unlimited, Inc.

15.   Subordination and Non-Disturbance  Agreement,  dated June 16, 2000, by and
      between Finova Capital Corporation,  Bluegreen/Big Cedar Vacations,  LLC.,
      Big Cedar Resort Club Owners Association, Inc. and Big Cedar, L.L.C.

16.   Operational Services and Integration Agreement, dated as of June 16, 2000,
      Bluegreen/Big  Cedar  Vacations,   LLC.,  Big  Cedar  Resort  Club  Owners
      Association, Inc. and Big Cedar, L.L.C.

17.   Servicing  Agreement,  dated as of June 16, 2000, by and between Bluegreen
      Corporation, Bluegreen/Big Cedar Vacations, LLC and Big Cedar, L.L.C.

18.   Tour Agreement,  dated 2005, by and between Big Cedar,  L.L.C.,  Bluegreen
      Vacations Unlimited, Inc. and Bluegreen/Big Cedar Vacations, LLC.

19.   Contribution or other transfer of certain  adjacent  property owned by Big
      Cedar,  L.L.C. or an affiliate of Big Cedar, L.L.C. to Bluegreen/Big Cedar
      Vacations, LLC. (Anticipated Spring 2007).

                                     4.13/2
<PAGE>

                                  Schedule 5.11

                                   Litigation

      Any legal  proceedings as disclosed in Guarantor's most recently filed 10K
Statement and the following other matters:

      Bluegreen  Southwest  One, L.P.  ("Southwest"),  a subsidiary of Bluegreen
Corporation ("Bluegreen"), is the developer of the Mountain Lakes subdivision in
Texas.  In Lesley,  et al v. Bluegreen  Southwest  One, L.P.  acting through its
General Partner Bluegreen  Southwest Land, Inc., et al, Cause No. 28006 District
Court of the 266th Judicial District,  Erath County,  Texas,  plaintiffs filed a
declaratory  action  against  Southwest  in which they seek to  develop  mineral
interests  in  the  Mountain  Lakes  subdivision.   Plaintiffs'  claims  against
Southwest  total in the aggregate $25 million.  Plaintiffs'  claims are based on
property law,  contract and tort theories.  The property owners  association has
filed a cross complaint against Bluegreen, Southwest and individual directors of
the property  owners  association  related to the mineral  rights and related to
certain  amenities in the  subdivision as described in the following  paragraph.
The court has confirmed the seniority of the mineral interests of the plaintiffs
and has held that  restrictions  against drilling within the subdivision are not
enforceable. Bluegreen is evaluating whether to appeal the court's ruling and is
unable to predict the ultimate resolution of the litigation. Bluegreen estimates
that  it  is   reasonably   possible  that  the  company  will  incur  costs  of
approximately $500,000 in this declaratory action case.

      One of the lakes that is an amenity in the Mountain Lakes  development has
not filled to the expected  level.  Owners of homesites  within the  subdivision
have asserted  claims  against  Bluegreen  regarding such failure as part of the
litigation  referenced  above.  Southwest  has  investigated  the  causes of the
failure of the lake to fill and currently  estimates that the cost of correcting
the condition will be approximately $3,000,000.

      Bluegreen has initiated litigation against Welbro Construction with regard
to construction  defects  discovered at Bluegreen's  Shorecrest Resort in Myrtle
Beach,  SC.  Bluegreen  cannot  currently  predict the outcome of the litigation
including the estimated cost of correcting  the condition,  the amounts that may
ultimately  be recovered  from the  defendant or the amounts that  Bluegreen may
need to  contribute  to  correct  the  condition  if the matter is  resolved  by
negotiated settlement.

      Bluegreen is involved in  litigation  relating to the  employment of sales
associates at its Williamsburg sales and project site, as well as its Shenandoah
project,  who were  allegedly  subject to  non-compete  agreements  with a prior
employer. Bluegreen cannot predict the outcome of the litigation.

      Litigation  has been initiated  against  Bluegreen and  LeisurePath,  Inc.
("LeisurePath"),  a subsidiary of Bluegreen whose principal business is a travel
club, involving claims asserted by consumers with regard to sales of LeisurePath
memberships through Vacation Station, Inc., an independent retail outlet. Claims
asserted  against  Bluegreen  and its  affiliates  relate to  transactions  that
allegedly  occurred in May, 2005.  LeisurePath  had terminated its  relationship
with Vacation  Station,  Inc.  prior to that time.  Bluegreen  believes that the
likelihood of an

                                     5.11/1
<PAGE>

unfavorable outcome resulting in a material loss to be remote; however Bluegreen
cannot predict the outcome of the litigation.

                                     5.11/2
<PAGE>

                                    Exhibit A

                                      LAND

           Legal Description of Big Cedar Wilderness Club Condominium

Phase 1 (Units 2020, 2021, 2022, 2023, 2024, 2025, 2026, 2027, 2028, and 2029)

A part of Lots 11, 12, 13, 14, all of Lots 15 and 16 of Block 10, a part of Lots
15, 16 and 17 of Block 16, a part of Lots 3, 4, 5 and 6 of Block 17 of  Lakeside
South, a subdivision in Taney County, Missouri, recorded in Plat Book 9, at Page
27 of the records of Taney County, Missouri, and a portion of Lot 1, Block 22 of
the First Addition to Lakeside  South,  subdivision  in Taney County,  Missouri,
recorded in Plat Book 12, at Page 15 of the records of Taney  County,  Missouri,
said tract of land being situated N 1/2 of the NE 1/4 of Section 11, Township 21
North, Range 22 West, Taney County,  Missouri, Being more particularly described
as follows:

Beginning  at the  Southwest  comer of Lot 5, Block 22 of The First  Addition to
Lakeside  South,  at  the  Corps  of  Engineers  monument  N-1400-14;  Thence  N
01(degree)31'35"  E, along the west line of Lots 5 through  1,  Block 22,  First
Addition  to  Lakeside  South,  a  distance  of 311.58  feet to the New Point of
Beginning;  Thence continuing N 0(degree)'31'35"  E, a distance of 12.52 feet to
Corps of Engineers  monument  338-3-1;  Thence N  25(degree)18'06"  W, along the
Government Fee Taking Line and the southwesterly line of Lot I of said Block 22,
and Lots 16 through 14,  Block 10,  Lakeside  South,  a distance of 239.85 feet;
Thence  N   27(degree)13'46"   E,  a   distance   of  323.50   feet;   Thence  N
73(degree)32'38"  E, a distance of 36.45 feet;  Thence S  69(degree)32'48"  E, a
distance of 19.82 feet; Thence N  20(degree)27'12"  E, a distance of 248.16 feet
to a point on new southerly  right-of-way line of Estate Drive, said point being
on a non-tangent curve; Along the Southerly  right-of-way line of the New Estate
Drive as follows:  Thence Easterly along a non-tangent 21.0128 degree segment of
a curve to the  right,  4.28  feet  (said  segment  having a chord  bearing  and
distance of S 81(degree)34'58" E, 4.28 feet and having a radius of 272.67 feet);
Thence S 81(degree)07'59" E, a distance of 52.34 feet; Thence S 29(degree)38'39"
W, leaving the Southerly  right-of-way  line of New Estate Drive,  a distance of
112.02 feet;  Thence S  20(degree)27'12"  W, a distance of 353.35  feet;  Thence
Southerly  along a 67.8057  degree  curve to the left,  52.67 feet  (said  curve
having a radius of 84.50 feet); Thence S 15(degree)15'36" E, a distance of 53.70
feet;  Thence  S  81(degree)34'16"  E,  a  distance  of  18.34  feet;  Thence  S
20(degree)50'42"  E, a distance of 92.70 feet;  Thence S  60(degree)21'15"  E, a
distance of 54.61 feet; Thence S  42(degree)04'50"  E, a distance of 46.04 feet;
Thence S 47(degree)55'10" W, a distance of 56.30 feet; Thence S 73(degree)44'33"
W, a distance of 85.70 feet;  Thence West, a distance of 80.33 feet;  to the New
Point of Beginning;  Containing 1.99 acres of land, more or less, Subject to all
easements and restrictions of record.

TOGETHER WITH:

                                      A-1
<PAGE>

Phase 3 (Units 2012, 2030, 2031 and 2032)

Parcel One:

A tract  of land  being a part of Lots 1, 6  through  8,  and 10 of  Block 17 of
Lakeside  South,  a subdivision  plat recorded in Plat Book 9, at Page 27 of the
records of Taney County,  Missouri, and a portion of vacated Juniper Drive, said
land being situated in the E 1/2 of the NE 1/4 of Section 11, Township 21 North,
Range 22 West,  Taney County,  Missouri,  Being more  particularly  described as
follows:

Commencing at the Southwest  corner of Lot 5, Block 22, of The First Addition to
Lakeside South, being marked by Corps. Of Engineers monument  N-1400-14;  Thence
North  01(degree)31'35"  East,  along the west line of lots 5 through I of Block
22, The First  Addition to Lakeside  South,  a distance of 311.58  feet;  Thence
East, a distance of 80.33 feet; Thence North  73(degree)44'33"  East, a distance
of 85.70 feet; Thence North  47(degree)55'10" East, a distance of 56.30 feet, to
the Point of Beginning;  Thence North 42(degree)04'50" West, a distance of 24.90
feet; Thence North 59(degree)46'49" East, a distance of 58.12 feet; Thence North
86(degree)03'20"  East, a distance of 62.66 feet; Thence North  22(degree)24'03"
East, a distance of 97.26 feet; Thence North  25(degree)12'17"  West, a distance
of 158.23 feet; Thence  Northwesterly  along a 67.4068 degree curve to the left,
26.47  feet  (said  curve  having  a  radius  of  85.00   feet);   Thence  North
43(degree)02'42"  West, a distance of 16.06 feet; Thence  Northwesterly  along a
49.8224  degree  curve to the right,  33.89 feet (said curve  having a radius of
115.00  feet);  Thence  North  26(degree)09'34"  West, a distance of 21.52 feet;
Thence  Northwesterly along a 38.1972 degree curve to the left, 84.42 feet (said
curve having a radius of 150.00 feet), to a point of compound curvature;  Thence
Northwesterly  along a 229.1831 degree curve to the left, 44.13 feet (said curve
having a radius of 25.00 feet); Thence North  20(degree)27'12"  East, a distance
of 80.93 feet; Thence Southerly along a 229.1837 degree curve to the left, 36.32
feet  (said  curve  having  a  radius  of 25.00  feet),  to a point  of  reverse
curvature;  Thence  Southeasterly  along a 31.8310  degree  curve to the  right,
115.05  feet  (said  curve  having  a  radius  of  180.00  feet);  Thence  South
26(degree)09'34"  East, a distance of 21.52 feet; Thence  Southeasterly  along a
67.4068  degree  curve to the left,  25.05 feet (said  curve  having a radius of
85.00  feet);  Thence  South  43(degree)02'42"  East,  a distance of 16.06 feet;
Thence Southeasterly along a 49.8224 degree curve to the right, 35.81 feet (said
curve having a radius of 115.00  feet);  Thence South  25(degree)12'17"  East, a
distance of 164.69  feet;  Thence  South  22(degree)24'03"  West,  a distance of
138.95  feet;  Thence  South  59(degree)47'07"  West, a distance of 105.39 feet;
Thence North  30(degree)12'53"  West, a distance of 37.73 feet,  to the Point of
Beginning; Containing 0.48 acres of land, more or less, Subject to all easements
and restrictions of record.

TOGETHER WITH:

Parcel Two:

A tract of land being a part of Lots 10, 11 of Block 10 and Lots 16, 17 of Block
11 of Lakeside South, a subdivision  plat recorded in Plat Book 9, at Page 27 of
the records of Taney County,  Missouri,  and a portion of vacated  Juniper Drive
and  Woodhull  Drive,  said land  being  situated  in the E 1/2 of the NE 1/4 of
Section 11, Township 21 North, Range 22 West, Taney County, Missouri, Being more
particularly described as follows:

                                      A-2
<PAGE>

Commencing at the Southwest  corner of Lot 5, Block 22 of The First  Addition to
Lakeside South,  being marked by Corps of Engineers monument  N-1400-14;  Thence
North  01(degree)31'35"  East,  along the west line of lots 5 through I of Block
22, of the First Addition to Lakeside  South, a distance of 324.10 feet to Corps
of Engineers  Monument 338-3-1;  Thence North  25(degree)18'06"  West, along the
westerly line of lot 1, Block 22 of The First  Addition to Lakeside  South,  and
the lots 16 through 14 of Block 10 of Lakeside South, a distance of 239.85 feet;
Thence North  27(degree)13'46"  East, a distance of 301.96 feet, to the Point of
Beginning;  Thence North 09(degree)20'48" West, a distance of 78.62 feet; Thence
North   80(degree)47'47"   East,   a  distance  of  34.71  feet;   Thence  North
19(degree)53'11"  East,  a distance of 184.09  feet to a point on new  Southerly
right-of-way  line of Estate  Drive,  said point being on a  non-tangent  curve;
Thence  Easterly  along a non-tangent  21.0128  degree segment of a curve to the
right,  66.16 feet (said  segment  having a chord  bearing and distance of South
88(degree)58'58"  East,  65.99 feet and having a radius of 272.67 feet);  Thence
South   20(degree)27'12"   West,  a  distance  of  248.16  feet;   Thence  North
69(degree)32'48"  West, a distance of 19.82 feet; Thence South  73(degree)32'38"
West, a distance of 36.45 feet; Thence South  27(degree)13'46"  West, a distance
of 21.54 feet, to the Point of Beginning; Containing 0.38 acres of land, more or
less, Subject to all easements and restrictions of record.

TOGETHER WITH:

Phase 4 (Building  2300)  (Units  2301/2302,  2304/2305,  2307/2308,  2309/2310,
2312/2313,  2314/2315,  2317/2318,  2320/2321,  2323/2324, 2326/2327, 2329/2330,
2331/2332,  2334/2335,  2336/2337,  2339/2340,  2342/2343, 2345/2346, 2348/2349,
2351/2352, 2353/2354, 2356/2357, 2358/2359, 2361/2362 and 2364/2365)

A tract of land being a part of Lots 11  through 17 of Block 16;  part of lots I
through 3 of Block 18 all of Lakeside South, a subdivision plat recorded in Plat
Book 9, at Page 27 of the records of Taney County, Missouri, and part of lots 13
through 16 of Block 23 of The First  Addition to Lakeside  South,  a subdivision
plat  recorded  in Plat  Book 12,  at Page 15 of the  records  of Taney  County,
Missouri,  and a portion of vacated  Juniper Drive and McMeen  Drive,  said land
being  situated  in the E 1/2 of the NE 1/4 of Section  11,  Township  21 North,
Range 22 West,  Taney County,  Missouri,  Being more  particularly  described as
follows:

Commencing at the Southwest  corner of Lot 5, Block 22 of The First  Addition to
Lakeside South, being marked by Corps of Engineers monument N-1400-14; Along the
Government Fee Taking Line as follows:  Thence South  87(degree)'41'11"  East, a
distance of 495.69 feet to Corps of Engineers monument  N-1400-13;  Thence South
73(degree)57'11"  East, a distance of 469.22 feet to the Southeast corner of Lot
10,  Block  24  of  The  First   Addition  to  Lakeside   South;   Thence  North
05(degree)37'57"  West,  leaving the  Government  Fee Taking Line, a distance of
126.75 feet to the  Northeast  corner of Lot 10, Block 24, said point being on a
non-tangent curve on the Southerly  right-of-way  line of Esquire Drive;  Thence
Easterly  along a  non-tangent  52.0871  degree  segment of a curve to the left,
along the  Southerly  right-of-way  line of  Esquire  Drive,  159.14  feet (said
segment  having a chord  bearing and  distance of North  42(degree)54'37"  East,
145.62 feet and having a radius of 110.00 feet);  Thence North  01(degree)27'49"
East, along the east right-of-way line of McMeen Drive, a distance of 25.00 feet
to the  Northwest  corner of lot 13, Block 24 of The First  Addition to Lakeside
South;  Thence  North  88(degree)32'11"  West,  a distance  of 24.99 feet to the
center line of vacated McMeen Drive;  Thence North  01(degree)27'49"  East along
the center line of Vacated McMeen Drive, a distance of 87.57 feet;  Thence North
60(degree)29'21" East, a distance of 44.75 feet; Thence

                                      A-3
<PAGE>

North 01(degree)27'49" East, a distance of 4.65 feet, to the Point of Beginning;
Thence North  89(degree)16'41"  West,  a distance of 349.91  feet;  Thence North
00(degree)43'19"  East, a distance of 88.83 feet; Thence North  37(degree)57'39"
East, a distance of 191.89 feet; Thence North  01(degree)33'02" East, a distance
of 94.62 feet to a point on the South right-of-way line of the new Estate Drive;
Along the South  right-of-way  line of Estate  Drive as  follows:  Thence  South
88(degree)26'58"  East,  a distance  of 150.71  feet;  Thence  Easterly  along a
15.2789  degree  curve to the right,  86.82 feet (said curve  having a radius of
375.00 feet); Thence South 01(degree)27'47" West, leaving the south right-of-way
line of Estates Drive on a  non-tangent  line, a distance of 322.81 feet, to the
Point of Beginning;  Containing 2.24 acres of land, more or less, Subject to all
easements and restrictions of record.

TOGETHER WITH:

Phase 5 (Building  2500)  (Units  2501/2502,  2504/2505,  2507/2508,  2509/2510,
2512/2513,  2514/2515,  2517/2518,  2520/2521,  2523/2524, 2526/2527, 2529/2530,
2531/2532,  2534/2535,  2536/2537,  2539/2540,  2542/2543, 2545/2546, 2548/2549,
2551/2552,  2553/2554,  2556/2557,  2558/2559,  2561/2562, 2564/2565, 2567/2568,
2570/2571,  2573/2574, 2575/2576, 2578/2579, 2580/2581, 2583/2584 and 2586/2587)
and the Clubhouse Property

A tract of land situated in the NE 1/4 of the NE 1/4 of Section 11,  Township 21
North, Range 2 West, Taney County,  Missouri,  Being a part of Lots 4 through 12
of Block 14 and part of Lots 20  through  25 of Block  15,  and part of  vacated
Rockbridge  Lane, all in Lakeside South, a subdivision plat recorded in Mat Book
9, at Page 27 of the records of Taney County,  Missouri, Being more particularly
described as follows:

Commencing at the Southwest  corner of Lot 5 of Block 22, The First  Addition to
Lakeside  South, a subdivision  plat recorded in Plat Book 12, at Page 15 of the
records of Taney County,  Missouri, being marked by Corps. of Engineers monument
N-1400-14;  Along the  Government Fee Taking Line of Table Rock Lake as follows:
Thence South 87(degree)41'11" East, a distance of 495.69 feet to Corps. monument
N-1400-13;  Thence South 73(degree)57'11" East, a distance of 469.22 feet to the
Southeast  corner of Lot 10, Block 24 of The First  Addition to Lakeside  South;
Thence North  05(degree)37'57"  West,  leaving the Government Fee Taking Line, a
distance of 126.75 feet to the Northeast  corner of Lot 10, Block 24, said point
on a non-tangent  curve on the  Southerly  right-of-way  line of Esquire  Drive;
Thence  Easterly  along a non-tangent  52.0871  degree segment of a curve to the
left, along the Southerly  right-of-way line of Esquire Drive, 159.14 feet (said
segment  having a chord  bearing and  distance of North  42(degree)54'37"  East,
145.62 feet and having a radius of 110.00 feet);  Thence North  01(degree)27'49"
East, along the East right-of-way line of McMeen Drive, a distance of 25.00 feet
to the  Northwest  corner of Lot 13, Block 24 of The First  Addition to Lakeside
South;  Thence  North  88(degree)32'11"  West,  a distance  of 24.99 feet to the
center line of vacated McMeen Drive; Thence North  01(degree)27'49"  East, along
the center line of vacated McMeen Drive, a distance of 87.57 feet;  Thence North
60(degree)29'21"  East, a distance of 44.75 feet; Thence North  01(degree)27'49"
East, a distance of 327.46 feet,  to a point on the South  right-of-way  line of
the New  South  right-of-way  line of  Estates  Drive,  said  point  being  on a
non-tangent curve; Thence Westerly along a non tangent 15.2789 degree segment of
a curve  to the  left,  along  the  South  right-of-way  line  of the new  South
right-of-way  line of Estate  Drive,  13.69  feet (said  segment  having a chord
bearing and  distance of North  76(degree)13'45"  West,  13.68 feet and having a
radius  of 375.00  feet) to a point on the west line of Lot 4,  Block 18 of said
Lakeside South; Thence North  01(degree)27'49"  East, along the west line of Lot
4, Block 18, a distance of 81.28 feet to

                                      A-4
<PAGE>

the Northwest corner of Lot 4, Block 18; Thence North  88(degree)32'11"  West, a
distance  of  50.00  feet to a point  on the  East  line of Lot 14,  Block 15 of
Lakeside South; Thence North  01(degree)27'49" East, along the East line of Lots
14 and 15,  Block 15 and Lot 12 of Block 14, a distance of 280.40  feet,  to the
Point of  Beginning;  Thence  North  88(degree)32'38"  West, a distance of 56.56
feet; Thence South 81(degree)16'21" West, a distance of 92.95 feet; Thence North
55(degree)59'06"  West, a distance of 76.46 feet; Thence North  41(degree)35'02"
West, a distance of 40.85 feet; Thence North  25(degree)15'40"  West, a distance
of 82.45 feet;  Thence South  49(degree)42'26"  West, a distance of 134.50 feet;
Thence North  29(degree)37'43"  West,  a distance of 358.51  feet;  Thence North
60(degree)22'17"  East, a distance of 93.44 feet; Thence North  29(degree)37'43"
West, a distance of 43.61 feet; Thence North  59(degree)51'09"  East, a distance
of 56.31 feet;  Thence  South  43(degree)07'46"  East, a distance of 61.57 feet;
Thence South  30(degree)29'42"  East,  a distance of 192.47  feet;  Thence South
40(degree)17'34"  East, a distance of 116.81 feet; Thence South 49(degree)42'26"
West, a distance of 31.57 feet; Thence South  22(degree)04'26"  East, a distance
of 48.80 feet;  Thence  South  43(degree)01'37"  East, a distance of 89.11 feet;
Thence  South  55(degree)59'06"  East,  a distance of 40.66 feet;  Thence  South
84(degree)15'30"  East, a distance of 20.46 feet; Thence North  81(degree)16'18"
East, a distance of 123.48 feet; Thence South  01(degree)27'49" West, a distance
of 35.56 feet, to the Point of Beginning; Containing 1.62 acres of land, more or
less, Subject to all easements and restrictions of record.

TOGETHER WITH:

Phase 6 (Units 2013, 2014, 2015, 2016, 2017, 2018 and 2019)

A tract of land being a part of Lots 1 through 10 inclusive of Block 17 Lakeside
South, a subdivision  plat recorded in Plat Book 9, at Page 27 of the records of
Taney  County,  Missouri  and a portion of vacated  Juniper  Drive and  Woodhill
Drive,  said land  being  situated  in the E1/2 of the  NE1/4,  of  Section  11,
Township  21  North,  Range  22  West,  Taney  County,   Missouri,   Being  more
particularly described as follows:

Commencing at the Southwest  corner of Lot 5, Block 22 of The First  Addition to
Lakeside South,  being marked by Corps of Engineers monument  N-1400-14;  Thence
North 01(degree)31'35" East, along the west line of Lots 5 through 1 of Block 22
of The First Addition to Lakeside South, a distance of 311.58 feet; Thence East,
a distance of 80.33 feet;  Thence  North  73(degree)44'33"  East,  a distance of
85.70 feet; Thence North 47(degree)55'10" East, a distance of 56.30 feet; Thence
North  42(degree)04'50"  West,  a  distance  of  24.90  feet,  to the  Point  of
Beginning;  Thence continuing North  42(degree)04'50"  West, a distance of 21.14
feet; Thence North 60(degree)21'15" West, a distance of 54.61 feet; Thence North
20(degree)50'42"  West, a distance of 92.70 feet; Thence North  81(degree)34'16"
West, a distance of 18.34 feet; Thence North  15(degree)15'36"  West, a distance
of 53.70 feet; Thence Northerly along a 67.8057 degree curve to the right, 52.67
feet (said curve having a radius of 84.50 feet);  Thence North  20(degree)27'12"
East, a distance of 171.63 feet;  Thence Northerly along a 229.1831 degree curve
to the right,  44.13 feet (said curve having a radius of 25.00 feet), to a point
of compound curvature;  Thence Southeasterly along a 38.1972 degree curve to the
right,  84.42 feet (said curve  having a radius of 150.00  feet);  Thence  South
26(degree)09'34"  East, a distance of 21.52 feet; Thence  Southeasterly  along a
49.8224  degree  curve to the left,  33.89 feet (said  curve  having a radius of
115.00  feet);  Thence  South  43(degree)02'42"  East, a distance of 16.06 feet;
Thence Southeasterly along a 67.4068 degree curve to the right, 26.47 feet (said
curve having a radius of 85.00  feet);  Thence  South  25(degree)12'17"  East, a
distance of 158.23 feet; Thence South 22(degree)24'03" West, a distance of 97.26
feet; Thence South 86(degree)03'20" West, a distance of 62.66 feet;

                                      A-5
<PAGE>

Thence South  59(degree)46'49"  West, a distance of 58.12 feet,  to the Point of
Beginning; Containing 1.63 acres of land, more or less, Subject to all easements
and restrictions of record.

TOGETHER WITH:

Phase 7 - Parcel 1 (Units 2003,  2004,  2005,  2006,  2007, 2008, 2009, 2010 and
2011)

A tract of land  being a part of Lots 1 through 7 and 21  through 25 of Block 16
Lakeside  South,  a subdivision  plat recorded in Plat Book 9, at Page 27 of the
records of Taney County,  Missouri,  and a portion of vacated  Juniper Drive and
Woodhill Drive, said land being situated in the E1/2 of the NE1/4 of Section 11,
Township 21 North Range 22 West, Taney County, Missouri; Being more particularly
described as follows:

Commencing at the Southwest  corner of Lot 5, Block 22 of the First  Addition to
Lakeside  South, a subdivision  plat recorded in Plat Book 12, at Page 15 of the
records of Taney County,  Missouri,  being marked by Corps of Engineers monument
N-1400-14;  thence North  01(degree) 31' 35" East, along the west line of Lots 5
through 1 of Block 22 of the First  Addition  to Lakeside  South,  a distance of
311.58 feet;  thence East, a distance of 80.33 feet; thence North 73(degree) 44'
33" East,  a distance of 85.70 feet;  thence  North  47(degree)  55' 10" East, a
distance of 56.30 feet;  thence  South  30(degree)  12' 53" East,  a distance of
37.73 feet;  thence  North  59(degree)  47' 07" East, a distance of 105.39 feet;
thence North  22(degree) 24' 03" East, a distance of 138.95 feet to the POINT OF
BEGINNING;  thence  North  25(degree)  12' 17" West,  a distance of 164.69 feet;
thence  northwesterly  along a 49.8224 degree curve to the left 35.81 feet (said
curve having a radius of 115.00 feet);  thence North  43(degree) 02' 42" West, a
distance of 16.06 feet;  thence  northerly  along a 67.4068  degree curve to the
right  25.05 feet  (said  curve  having a radius of 85.00  feet);  thence  North
26(degree) 09' 34" West, a distance of 21.52 feet;  thence  northwesterly  along
31.8310 a degree  curve to the left 115.05  feet (said curve  having a radius of
180.00 feet);  thence along a 229.1831  degree  reverse curve to the right 36.32
feet (said curve having a radius of 25.00 feet); thence North 20(degree) 27' 12"
East,  a distance  of 100.79  feet;  thence  North  29(degree)  18' 39" East,  a
distance of 112.02 feet,  to a point on the new south  right-of-way  line Estate
Drive; Along the southerly right-of-way line of Estate Drive as follows;  thence
South  81(degree)  07' 59" East, a distance of 4.57 feet;  thence  southeasterly
along a 21.3942  degree  curve to the right,  261.52 feet (said  curve  having a
radius of 267.81  feet);  thence  South  25(degree)  10' 57" East, a distance of
164.45  feet;  thence  southeasterly  along a 17.0027  degree curve to the Left,
69.67 feet (said curve having a radius of 336.98 feet);  thence South 52(degree)
58' 17"  West,  leaving  the  southerly  right-of-way  line of Estate  Drive,  a
distance of 208.07  feet;  thence South  22(degree)  24' 03" West, a distance of
52.55 feet,  to the Point of  Beginning,  containing  2.50 acres of land more or
less, Subject to all easements and restrictions of record.

TOGETHER WITH:

Phase 7 - Parcel 2 (Building 2400) (Units 2411,  2412,  2413,  2414, 2415, 2416,
2417,  2418,  2419,  2420, 2421, 2422, 2423, 2424, 2425, 2426, 2427, 2428, 2431,
2432,  2433,  2434,  2435, 2436, 2437, 2438, 2441, 2442, 2443, 2444, 2445, 2446,
2447 and 2448)

A tract of land  being a part of Lots 7, 8, 12  through 21 of Block 15, and part
of Lots 10 through 12 of Block 14 of Lakeside South, a subdivision plat recorded
in Plat  Book 9, at Page 27 of the  records  of Taney  County,  Missouri,  and a
portion of vacated Rockbridge Lane, said land being

                                      A-6
<PAGE>

situated  in the E1/2 of the NE1/4 of Section 11,  Township  21 North,  Range 22
West, Taney County, Missouri; Being more particularly described as follows:

Commencing at the Southwest  corner of Lot 5, Block 22 of the First  Addition to
Lakeside  South, a subdivision  plat recorded in Plat Book 12, at Page 15 of the
records of Taney County,  Missouri, being marked by Corps. of Engineers monument
N-1400-14;  Along the  Government Fee Taking Line of Table Rock Lake as follows:
Thence  South  87(degree)  41' 11" East,  a  distance  of 495.69  feet to Corps.
monument  N-1400-13;  thence South 73(degree) 57' 11" East, a distance of 469.22
feet to the  Southeast  corner  of Lot 10,  Block 24 of the  First  Addition  to
Lakeside South; thence North 05(degree) 37' 57" West, leaving the Government Fee
Taking Line, a distance of 126.75 feet to the Northeast  corner of Lot 10, Block
24, said point being on a non-tangent  curve on the southerly  right-of-way line
of Esquire Drive;  thence easterly along a non-tangent 52.0871 degree segment of
a curve to the left,  along the southerly  right-of-way  line of Esquire  Drive,
159.14  feet  (said  segment  having  a chord  bearing  and  distance  of  North
42(degree) 54' 37" East, 145.62 feet and having a radius of 110.00 feet); thence
North 01(degree) 27' 49" East, along the east right-of-way line of McMeen Drive,
a distance  of 25.00  feet to the  Northwest  corner of Lot 13,  Block 24 of the
First  Addition to Lakeside  South;  thence  North  88(degree)  32' 11" West,  a
distance of 24.99 feet to the center line of vacated McMeen Drive;  thence North
01(degree)  27' 49" East,  along the center  line of  vacated  McMeen  Drive,  a
distance of 87.57 feet;  thence  North  60(degree)  29' 21" East,  a distance of
44.75 feet; thence North 01(degree) 27' 49" East, a distance of 327.46 feet to a
point on the New south  right-of-way line of Estate Drive, said point being on a
non-tangent curve;  thence westerly along a non-tangent  15.2789 degree curve to
the left, along the South  right-of-way line of the new south  right-of-way line
of Estate Drive,  13.69 feet (Said  segment  having a chord bearing and distance
North 76(degree) 13' 45" West, 13.68 feet and having a radius of 375.00 feet) to
a point on the west line of Lot 4, Block 18 of said Lakeside South; thence North
01(degree)  27' 49"  East,  along  the west  line of Lots 4 and 5,  Block  18, a
distance of 166.28 feet to the northwest  corner of Lot 5, Block 18, of Lakeside
South; thence North 88(degree) 32' 11" West, a distance of 50.00 feet to a point
on  the  east  line  of Lot 14 of  Block  15 of  Lakeside  South;  thence  North
01(degree)  27' 49" East,  along  the east  line of Lots 14 and 15,  Block 15, a
distance of 72.10 feet to the POINT OF BEGINNING;  thence North  88(degree)  32'
38" West,  a distance of 62.80 feet;  thence  South  01(degree)  27' 22" West, a
distance of 84.34 feet; thence South 44(degree) 07' 40" West a distance of 53.93
feet;  thence South  79(degree)  44' 42" West, a distance of 31.94 feet;  thence
North  45(degree)  52' 20"  West,  a  distance  of  343.25  feet;  thence  North
44(degree) 07' 40" East,, a distance of 36.82 feet;  thence North 29(degree) 37'
43" West,  a distance of 38.20 feet;  thence  North  49(degree)  42' 26" East, a
distance of 134.50  feet;  thence South  25(degree)  15' 40" East, a distance of
82.45 feet;  thence  South  41(degree)  35' 02" East,  a distance of 40.85 feet;
thence South  55(degree)  59' 06" East,  a distance of 76.46 feet;  thence North
81(degree) 16' 21" East, a distance of 92.95 feet;  thence South  88(degree) 32'
38" East, a distance of 56.56 feet,  to a point on the east line of said Lot 12,
Block 14; thence South  01(degree) 27' 49" West, along the east line of said Lot
12,  Block 14, and Lot 15 of Block 15 of  Lakeside  South,  a distance of 123.30
feet, to the Point of Beginning,  Containing  1.61 acres of land,  more or less.
Subject to all easement and restrictions of record.

                                      A-7
<PAGE>

TOGETHER WITH:

Phase  8  (Building   2600)  (Units   2611A/2611B,   2612A/2612B,   2613A/2613B,
2614A/2614B,  2615A/2615B,  2616A/2616B,  2617A/2617B, 2618A/2618B, 2621A/2621B,
2622A/2622B,  2623A/2623B,  2624A/2624B,  2625A/2625B, 2626A/2626B, 2627A/2627B,
2628A/2628B,  2631A/2631B,  2632A/2632B,  2633A/2633B, 2634A/2634B, 2635A/2635B,
2636A/2636B,  2637A/2637B,  2638A/2638B,  2641A/2641B, 2642A/2642B, 2643A/2643B,
2644A/2644B, 2645A/2645B, 2646A/2646B, 2647A/2647B and 2648A/2648B)

A tract of land being a part of lot 9, Block 11, part of lots 25 and 26 of Block
15, and part of Lots 1 through 4 and 22 through 25 of Block 14, and part of Lots
1 and 2 of Block 13 of the Lakeside  South, a subdivision  plat recorded in Plat
Book 9, at Page 27 of the  records of Taney  County,  Missouri  and a portion of
vacated  Rockbridge  Lane,  Blueridge  Lane,  and Woodhill Drive said land being
situated  in the E1/2 of the NE1/4 of Section 11,  Township  21 North,  Range 22
West, Taney County, Missouri, Being more particularly described as follows:

Commencing at the Southwest  corner of Lot 5, Block 22 of the First  Addition to
Lakeside  South,  a subdivision  plat recorded in Nat Book 12, at Page 15 of the
records of Taney County,  Missouri,  being marked by Corps of Engineers monument
N-1400-14;  Along the  Government Fee Taking Line of Table Rock Lake as follows:
thence  South  87(degree)  41' 11" East,  a  distance  of  495.69  feet to Corps
monument  N-1400-13;  thence South 73(degree) 57' 11" East, a distance of 469.22
feet to the  Southeast  corner  of Lot 10,  Block 24 of the  First  Addition  to
Lakeside South; thence North 05(degree) 37' 57" West, leaving the Government Fee
Taking Line, a distance of 126.75 feet to the Northeast  corner of Lot 10, Block
24, said point being on a non-tangent  curve on the southerly  right-of-way line
of Esquire Drive;  thence easterly along a non-tangent 52.0871 degree segment of
a curve to the left,  along the southerly  right-of-way  line of Esquire  Drive,
159.14  feet  (said  segment  having  a chord  bearing  and  distance  of  North
42(degree) 54' 37" East, 145.62 feet and having a radius of 110.00 feet); thence
North 01(degree) 27' 49" East, along the east right-of-way line of McMeen Drive,
a distance  of 25.00  feet to the  Northwest  corner of Lot 13,  Block 24 of the
First  Addition to Lakeside  South;  thence  North  88(degree)  32' 11" West,  a
distance of 24.99 feet to the center line of vacated McMeen Drive;  thence North
01(degree)  27' 49" East,  along the center  line of  vacated  McMeen  Drive,  a
distance of 87.57 feet;  thence  North  60(degree)  29' 21" East,  a distance of
44.75 feet; thence North 01(degree) 27' 49" East, a distance of 327.46 feet to a
point on the new south  right-of-way line of Estate Drive, said point being on a
non-tangent curve;  thence westerly along a non-tangent  15.2789 degree curve to
the left, along the South  right-of-way line of the new south  right-of-way line
of Estate Drive,  13.69 feet (said  segment  having a chord bearing and distance
North 76(degree) 13' 45" West, 13.68 feet and having a radius of 375.00 feet) to
a point on the West line of Lot 4, Block 18 of said Lakeside South; thence North
01(degree)  27' 49"  East,  along  the west  line of Lots 4 and 5,  Block  18, a
distance of 166.28 feet to the  northwest  corner of Lot 5, Block 18 of Lakeside
South; thence North 88(degree) 32' 11" West, a distance of 50.00 feet to a point
on  the  east  line  of Lot 14 of  Block  15 of  Lakeside  South;  thence  North
01(degree)  27' 49" East,  along  the east  line of Lots 14 and 15,  Block 15, a
distance of 72.10 feet;  thence  North  88(degree)  32' 38" West,  a distance of
62.80 feet;  thence  South  01(degree)  27' 22" West,  a distance of 84.34 feet;
thence South  44(degree)  07' 40" West,  a distance of 53.93 feet;  thence South
79(degree) 44' 42" West, a distance of 31.94 feet;  thence North  45(degree) 52'
20" West, a distance of 343.25 feet;  thence  North  44(degree)  07' 40" East, a
distance of 36.82 feet;  thence  North  29(degree)  37' 43" West,  a distance of
396.70 feet to the POINT of BEGINNING;  thence  Continuing  North 29(degree) 37'
43" West a distance of 49.27 feet; thence North

                                      A-8
<PAGE>

40(degree) 54' 48" West a distance of 322.91 feet;  thence South  49(degree) 05'
12" West a  distance  of 32.00  feet;  thence  North  40(degree)  54' 48" West a
distance  of 36.00  feet;  thence  North  49(degree)  05' 12" East a distance of
180.14  feet;  thence  South  44(degree)  10' 47" East a distance of 69.36 feet;
thence South  50(degree)  38' 24" East a distance of 134.58  feet;  thence South
49(degree)  26' 43" East a distance of 50.44 feet;  thence South  38(degree) 20'
10" East a  distance  of 70.03  feet;  thence  South  27(degree)  06' 14" East a
distance of 46.65 feet; thence South 00(degree) 00' 00" West a distance of 34.59
feet;  thence  South  59(degree)  51' 09" West a distance of 56.31 feet;  thence
South 29(degree) 37' 43" East a distance 43.61 feet; thence South 60(degree) 22'
17" West a distance  of 92.95 feet to the said  POINT of  BEGINNING,  Containing
1.58 acres of land, more or less,  Subject to all easements and  restrictions of
record.

Phase 9 (Units 2033,  2034,  2035,  2036, 2037, 2038, 2039, 2040, 2041, 2042 and
2043)

A tract of land situated in the SE1/4 of the SE1/4 of Section 2 and the NE1/4 of
Section 11, Township 21 North, Range 22 West, Taney County,  Missouri, Being all
of Lots 1 through 16 of Block 10,  Lots 1 through 17 of Block 11, lots 7 through
17 of Block 12,  Lots 1 through  14 of Block 13,  Lots 1 through 25 of Block 14,
Lots 1 through 26 of Block 15,  Lots 1 through 25 of Block 16, Lots 1 through 10
of Block 17,  and a portion of Lots 1 through 3 of Block 18,  together  with the
vacated portions of roads within,  All in Lakeside South, a subdivision in Taney
County,  Missouri  recorded  in Plat Book 9, at page 27 of the  records of Taney
County,  Missouri, Also, together with all of Lots 1 through 5 of Block 22, Lots
1 through  20 of Block 23,  Lots 1 through  10 of Block 24, a portion of Lots 14
and 15 of Block 24,  together with the vacated roads  therein,  All in the First
Addition to Lakeside South, a subdivision in Taney County, Missouri, as recorded
in Plat Book 12, at Page 15 of the records of Taney County, Missouri, Being more
particularly described as follows:

Beginning at the  southwest  corner of Lot 5 of Block 22, The First  Addition to
Lakeside South, being marked by Corps. Of Engineers monument  N-1400-14;  Thence
North  01(degree)31'35"  East, a distance of 324.10 feet to Corps.  of Engineers
monument 338-3-1;  Thence North 25(degree)18'06" West, a distance of 366.06 feet
to Corps.  monument  338-3-2;  Thence  South  47(degree)25'03"  West,  along the
Government  Fee Taking  Line, a distance of 449.40  feet,  to the southern  most
corner of said Lot 1 of Book 10; Thence North 34(degree)00'22" West, leaving the
Government  Fee Taking  Line,  a distance of 118.17  feet,  to the western  most
corner of Lot 1 of Block 10, said point being on a non-tangent  curve; Along the
easterly right-of-way line of Lindell Drive and the westerly line of Block 10 of
Lakeside  South as follows:  Thence  Northeasterly  along a  non-tangent  9.1973
degree  segment of a curve to the left,  92.57 feet (said segment having a chord
bearing and  distance of North  51(degree)44'14"  East,  92.48 feet and having a
radius of 622.96 feet); Thence North 47(degree)28'49" East, a distance of 332.16
feet; Thence  Northeasterly along a 9.1973 degree curve to the left, 268.10 feet
(said curve having a radius of 622.96 feet); Thence North 22(degree)49'19" East,
a  distance  of 112.11  feet to the  southwesterly  corner of Lot 1 of Block 11;
Thence North  67(degree)10'41"  West, leaving the easterly  right-of-way line of
Lindell  Drive,  a distance of 50.00 feet to the  southeast  corner of Lot 27 of
Block 7 of Lakeside South; Along the westerly right-of-way line of Lindell Drive
as follows:  Thence North 22(degree)49'19" East, a distance of 1.73 feet, Thence
Northeasterly  along a 13.3333 degree curve to the left, 187.54 feet (said curve
having a radius of 429.72 feet); Thence North  02(degree)10'59" West, a distance
of 122.64 feet; Thence Northerly along a 29.9994 degree curve to the left 135.72
feet (said curve having a radius of 190.99 feet); Thence North  42(degree)53'58"
West, a distance of 3.34 feet to the  northern  most corner of Lot 24 of Block 7
of Lakeside  South;  Thence  North  47(degree)06'02"  East  leaving the westerly
right-of-way line of Lindell

                                      A-9
<PAGE>

Drive and along the southerly  right-of-way line of Oakwood Drive, a distance of
71.43 feet; Thence North  42(degree)53'58" West, a distance of 50.00 feet to the
southern  common  corner  of Lots 20 and 21 of  Block  9;  Along  the  northerly
right-of-way  line of  Oakwood  Drive,  and the  southerly  lot  line of Lots 12
Through 23 of Block 9 and Lots 1 through 3 of Block 19 and a portion of Lot 4 of
Block 19 as follows:  Thence North  47(degree)06'02"  East, a distance of 336.25
feet; Thence Northeasterly along a 2.0000 degree curve to the right, 140.00 feet
(said curve  having a radius of 2864.79  feet);  Thence  North  49(degree)54'02"
East,  a distance  of 131.27 feet to a point on the  southerly  line of Lot 4 of
Block 19 of Lakeside South;  Thence South  40(degree)05'58"  East, to a point on
the south  right-of-way  line of Oakwood Drive, a distance of 50.00 feet, to the
southwest corner of Lot 1 of Block 12, said point being on a non-tangent  curve,
Along the northerly right-of-way line of Reinhart Lane and the southerly line of
Lots 1 through 6 of Block 12 of Lakeside  South;  Thence  Southeasterly  along a
non-tangent  45.3325  degree  segment of a curve to the left,  101.09 feet (Said
segment  having a chord  bearing and  distance of South  63(degree)01'90"  East,
98.42 feet and having a radius of 126.39  feet);  Thence South  85(degree)56'01"
East, a distance of 210.40 feet; Thence Easterly along a 17.2463 degree curve to
the  right,  160.49  feet  (said  curve  having a radius of 132.22  feet) to the
northwest   corner  Lot  7  of  Block  12  of  Lakeside   South;   Thence  North
73(degree)45'50"  East,  along a non-tangent  line, a distance of 113.74 feet to
the   Northeasterly   corner   of  said  lot  7  of  Block  12;   Thence   North
01(degree)27'49"  East, along the west line of Lot 17 of block 12, a distance of
7.21  feet to the  Northwest  corner of said Lot 17 of Block  12;  Thence  South
88(degree)32'11" East, a distance of 102.00 feet to the Northeast corner of said
Lot 17 of Block 12,  said point  being on the west  right-of-way  line of McMeen
Drive;  Along the west  right-of-way  line of McMeen and the east line of Blocks
12, 14 and 15; Thence South 01(degree)27'49" West, a distance of 1122.69 feet to
a point on the east  line of Lot 14 of Block 15  Lakeside  South;  Thence  South
88(degree)32'11" East, a distance of 50.00 feet to the northwest corner of Lot 5
of Block 18 Lakeside South; Thence South  01(degree)27'49"  West, along the west
line of Lots 4 and 5 of Block 18, a distance of 166.28  feet,  to a point on the
south  right-of-way  line  of the  New  Estate  Drive,  said  point  being  on a
non-tangent curve; Thence Easterly along a non-tangent 15.2789 degree segment of
a curve to the right and along  the south  right-of-way  line of the New  Estate
Drive,  13.69 feet (said  segment  having a chord  bearing and distance of South
76(degree)13'45" East, 13.68 feet and having a radius of 375.00 feet) to a point
in Lot 3 of Block 18 of Lakeside South; Thence South 01(degree)27'49" West, over
and  across a portion of Lots 1 through 3 of said  Block 18  Lakeside  South and
Lots 14 and 15 of The First  Addition  to Lakeside  South,  a distance of 327.46
feet; Thence South 60(degree)29'21" West, a distance of 44.75 feet to a point on
the center line of vacated  McMeen Drive;  Thence South  01(degree)27'49"  West,
along the center line of vacated McMeen, a distance of 87.57 feet;  Thence South
88(degree)32'11"  East, a distance of 24.99 feet to the northwest  corner of Lot
13 of Block 24 of The First Addition to Lakeside  South;  Along the easterly and
southerly   right-of-way  line  of  Esquire  Drive  as  follows:   thence  South
01(degree)27'49" West a distance of 25.00 feet; Thence Southerly along a 52.0871
degree  curve to the right,  159.14 feet (said  curve  having a radius of 110.00
feet) to the  northeast  corner  of Lot 10,  Block 24 of The First  Addition  to
Lakeside  South;  Thence  South  05(degree)37'57"  East,  leaving  the  southern
right-of-way  line of Esquire  Drive, a distance of 126.75 feet to the Southeast
corner of Lot 10 of Block 24 The First  Addition to Lakeside  South,  said point
being on the  Government  Fee Taking Line;  Along the south line of Block 24 and
the Government Fee Taking Line as follows: Thence North 73(degree)57'11" West, a
distance  of  469.22  feet to Corps  of  Engineers  No.  1400-13;  Thence  North
87(degree)41'11"  West,  a distance of 495.69 feet,  to the Point of  Beginning;
Containing  48.24  acres of land,  more or less,  Subject to all  easements  and
restrictions of record.

                                      A-10
<PAGE>

Phase 10 (Building 2700)

A tract  of land  being a part of Lots 6  through  12,  18,  19,  all of Lots 13
through  17 of  Block  14 and  part of Lot 12 of  Block  12  Lakeside  South,  a
subdivision  plat  recorded  in Plat Book 9, at Page 27 of the  records of Taney
County,  Missouri,  and a portion of  vacated  Blueridge  Lane,  said land being
situated in the E 1/2 of the NE 1/4 of Section 11,  Township 21 North,  Range 22
West, Taney County, Missouri, Being more particularly described as follows:

Commencing at the Southwest  corner of Lot 5, Block 22 of the First  Addition to
Lakeside  South, a subdivision  plat recorded in Plat Book 12, at Page 15 of the
records of Taney County,  Missouri, being marked by Corps. of Engineers monument
N-1400-14;  Along the  Government Fee Taking Line of Table Rock Lake as follows:
thence  South  87(degree)  41' 11" East,  a  distance  of 495.69  feet to Corps.
monument  N-1400-13;  thence South 73(degree) 57' 11" East, a distance of 469.22
feet to the  Southeast  corner  of Lot 10,  Block 24 of the  First  Addition  to
Lakeside South; thence North 05(degree) 37' 57" West, leaving the Government Fee
Taking Line, a distance of 126.75 feet to the Northeast  corner of Lot 10, Block
24, said point being on a non-tangent  curve on the southerly  right-of-way line
of Esquire  Drive;  thence  easterly  along the southerly  light-of-way  line of
Esquire Drive through a non-tangent segment of a curve to the left having an arc
length of 159.14 feet (said segment having a chord bearing and distance of North
42(degree) 54' 37" East, 145.62 feet and a radius of 110.00 feet);  thence North
01(degree)  27' 49" East,  along the east  right-of-way  line of McMeen Drive, a
distance of 25.00 feet to the Northwest  corner of Lot 13, Block 24 of the First
Addition to Lakeside South;  thence North 88(degree) 32' 11" West, a distance of
24.99 feet to the center line of vacated McMeen Drive;  thence North  01(degree)
27' 49" East, along the center line of vacated McMeen Drive, a distance of 87.57
feet;  thence North  60(degree)  29' 21" East,  a distance d 44.75 feet;  thence
North  01(degree)  27' 49" East, a distance of 327.46 feet to a point on the New
south  right-of-way  line of Estate  Drive,  said point  being on a  non-tangent
curve; thence westerly along a non-tangent segment of a curve to the left, along
the South  right-of-way line of the new south right-of-way line of Estate Drive,
having an arc length of 13.69  feet (said  segment  having a chord  bearing  and
distance North  76(degree) 13' 46" West, 13.68 feet and a radius of 375.00 feet)
to a point on the west line of Lot 4, Block 18 of said  Lakeside  South;  thence
North  01(degree) 27' 49" East, along the west line of Lots 4 and 5, Block 18, a
distance  of 166.28 feet to the  northwest  comer of Lot 5, Block 18 of Lakeside
South; thence North 88(degree) 32' 11" West, a distance of 50.00 feet to a point
on  the  east  line  of Lot 14 of  Block  15 of  Lakeside  South;  thence  North
01(degree) 27' 49" East, along the east line of Lots 14 and 15, Block 15 and Lot
12 of Block 14, a  distance  of 230.96  feet to the POINT of  BEGINNING;  Thence
South 81(degree) 16' 21" West a distance of 123.49 feet; Thence North 84(degree)
15' 18" West a distance of 20.45 feet;  Thence North  55(degree)  59' 06" West a
distance of 40.66 feet; Thence North 41(degree) 35' 02" West a distance of 87.09
feet;  Thence  North  25(degree)  15' 40" West a distance of 50.00 feet;  Thence
North 49(degree) 42' 26" East a distance of 31.57 feet;  Thence North 40(degree)
17' 34" West a distance of 116.81 feet;  Thence North  30(degree) 08' 51" West a
distance  of 89.47  feet;  Thence  North  50(degree)  21' 22" East a distance of
165.10 feet; Thence North 39(degree)12'14" West a distance of 33.53 feet; Thence
North   50(degree)47'46"   East  a  distance   of  54.56  feet;   Thence   South
36(degree)05'00"  East a distance of 11.84 feet;  Thence North  50(degree)18'32"
East a distance of 20.87 feet; Thence South  42(degree)33'46" East a distance of
259.22 feet; Thence South 88(degree)32'11" East a distance of 12.26 feet; Thence
South  01(degree)27'49"  West a  distance  of 281.71  feet to the said  Point of
Beginning, Containing 2.52 acres of land, more or less, Subject to all easements
and restrictions of record,

                                      A-11
<PAGE>

Phase 11 (Building 2900)

A tract of land  being all of Lots 3 and 4 and part of Lots 1, 2, 5, 6, 10,  11,
12,  13 and 14 of Block 13,  part of lots 22,  23 and 24 of Block  14,  Lakeside
South, a subdivision  plat recorded in Plat Book 9, at Page 27 of the records of
Taney  County,  Missouri and a portion of vacated  Blueridge  Lane and Rein Hart
Lane,  said land being  situated  in the N1/2 of the of the NE1/4 of Section 11,
Township  21  North,  Range  22  West,  Taney  County,   Missouri,   Being  more
particularly described as follows:

Commencing at the Southwest  corner of Lot 5, Block 22 of the First  Addition to
Lakeside  South, a subdivision  plat recorded in Plat Book 12, at Page 15 of the
records of Taney County,  Missouri, being marked by Corps. of Engineers monument
N-1400-14;  Along the  Government Fee Taking Line of Table Rock Lake as follows:
Thence  South  87(degree)  41' 11" East,  a  distance  of 495.69  feet to Corps.
monument  N-1400-13;  Thence South  73(degree)57'11"  East, a distance of 469.22
feet to the  Southeast  corner  of Lot 10,  Block 24 of the  First  Addition  to
Lakeside South; Thence North  05(degree)37'57"  West, leaving the Government Fee
Taking Line, a distance of 126.75 feet to the Northeast  corner of Lot 10, Block
24, said point being on a non-tangent  curve on the southerly  right-of-Way line
of Esquire  Drive;  Thence  easterly  along the southerly  right-of-way  line of
Esquire Drive on a non-tangent  curve to the left having an arc length of 159.14
feet,   (said   segment   having  a  chord   bearing   and   distance  of  North
42(degree)54'37"  East,  145.62 feet and a radius of 110.00 feet);  Thence North
01(degree)27'49"  East,  along the east  right-of-way  line of McMeen  Drive,  a
distance of 25.00 feet to the Northwest  corner of Lot 13, Block 24 of the First
Addition to Lakeside South;  thence North  88(degree)32'11"  West, a distance of
24.99  feet  to  the  center  line  of  vacated   McMeen  Drive;   Thence  North
01(degree)27'49" East, along the center line of vacated McMeen Drive, a distance
of 87.57 feet;  Thence  North  60(degree)29'21"  East, a distance of 44.75 feet;
thence North  01(degree)27'49" East, a distance of 327.46 feet to a point on the
new south  right-of-way  line of Estate Drive, said point being on a non-tangent
curve;  Thence  westerly  along  the  South  right-of-way  line of the new south
right-of-way line of Estate Drive on non-tangent  segment of a curve to the left
having an arc length of 13.69 feet,  (said  segment  having a chord  bearing and
distance of North 76(degree)13'45" West, 13.68 feet and a radius of 375.00 feet)
to a point on the west line of Lot 4, Block 18 of said  Lakeside  South;  Thence
North  01(degree)27'49"  East,  along the west line of Lots 4 and 5, Block 18, a
distance of 166.28 feet to the  northwest  corner of Lot 5, Block 18 of Lakeside
South; Thence North  88(degree)32'11"  West, a distance of 50.00 feet to a point
on  the  east  line  of Lot 14 of  Block  15 of  Lakeside  South;  Thence  North
01(degree)27'49"  East,  along  the  east  line of Lots 14 and 15,  Block  15, a
distance of 72.10 feet; thence North  88(degree)32'38" West, a distance of 62.80
feet; thence South 01(degree)27'22" West, a distance of 84.34 feet; thence South
44(degree)07'40"  West a distance of 53.93 feet;  Thence South  79(degree)44'42"
West a distance of 31.94 feet; Thence North  45(degree)52'20" West a distance of
343.25 feet; Thence North 44(degree)07'40" East a distance of 36.82 feet; Thence
North   29(degree)37'43"   West  a  distance  of  396.70   feet;   Thence  North
60(degree)22'17"  East a distance of 92.95 feet;  Thence North  29(degree)37'43"
West a distance of 43.61 feet; Thence North  59(degree)51'09" East a distance or
56.31 feet; Thence North  00(degree)00'00" East a distance of 34.59 feet; Thence
North   27(degree)06'14"   West  a  distance   of  46.65  feet;   Thence   North
38(degree)20'10"  West a distance of 70.03 feet;  Thence North  49(degree)26'43"
West a distance of 33.53 feet to the Point of Beginning; Thence continuing North
49(degree)26'43"  West a distance of 16.91 feet;  Thence North  50(degree)38'24"
West a distance of 134.58 feet; Thence North 44(degree)10'47' West a distance of
69.36 feet;  Thence North  33(degree)53'56"  West a distance of 144.68 feet to a
point  on  the  southeasterly   right-of-way  line  of  Oakwood  Drive;   Thence
northeasterly along the southeasterly right-of-way line of Oakwood

                                      A-12
<PAGE>

Drive on a  non-tangent  segment of a curve to the right having an arc length of
104.89  feet,  (said  segment  having  a chord  bearing  and  distance  of North
48(degree)49'43"  East, 104.88 feet and a radius of 2814.97 feet);  Thence North
49(degree)54'02"  East,  along the  southeasterly  right-of-way  line of Oakwood
Drive, a distance of 79.81 feet; Thence South  67(degree)11'47"  East a distance
of 58.78 feet;  Thence  South  47(degree)46'44"  East a distance of 217.26 feet;
Thence  South  46(degree)44'20"  East a distance  of 77.96  feet;  Thence  South
44(degree)33'57"  East a distance of 43.15 feet;  Thence South  50(degree)36'41"
West a distance of 63.49 feet; Thence North  49(degree)16'39" West a distance of
50.33 feet; Thence South  40(degree)48'31" West a distance of 166.76 feet to the
said Point of Beginning, Containing 1.92 acres of land, more or less, Subject to
all easements and restrictions of record.

                                      A-13
<PAGE>

                                    Exhibit B

                          Big Cedar Availability Report

                                                                  Month End Date
                                                                  --------------

Beginning Financed Note Receivable Balance
Add:  New Eligible Collateral
Add:  Substitutions
Less:  Principal Collections
Less:  Paid in Full
Less:  Upgrades
Less:  Defaults/Cancellations
Add/Less:  Other Adjustments
Subtotal Receivables Balance
Less:  90+ Day Delinquencies
Total Eligible Note Receivable Balance

Beginning GE Loan Balance
Add:  New Fundings
Less:  Principal Reductions
Add/Less:  Other Adjustments
GE Ending Outstanding Principal Loan Balance

FINANCED NOTES RECEIVABLE WTD AVG COUPON
LENDER'S INTEREST RATE
SPREAD

Effective Availability Percentage
Availability Percentage
Required Loan Balance
Excess/(Deficit) Availability

Funding Availability

                                      B-1
<PAGE>

                                    Exhibit C

                            Form of Borrower Estoppel

                              ESTOPPEL CERTIFICATE

      The undersigned  hereby certifies to General Electric Capital  Corporation
(together with its successors and assigns, "Lender") that:

      1. The principal  amount  outstanding  to Lender  pursuant to that certain
Loan and Security  Agreement dated April 16, 2007,  between  Borrower and Lender
(the  "Loan  Agreement")  and  the  promissory  note  executed  by  Borrower  in
connection  therewith is $______________.  Capitalized terms used herein and not
defined shall have the meanings set forth for them in the Loan Agreement.

      2. Interest on the Loan has been paid to _____________________.

      3.  Pursuant to the Loan  Agreement,  the Loan Interest Rate is a variable
rate equal to the Base Rate plus 1.75% per annum (adjusted  monthly).  Currently
the Base Rate is _______%.

      4. The Loan Documents  constitute the entire agreement between the parties
and there are no other agreements or  understandings  between Borrower or Lender
concerning the Loan.

      5. The Loan Documents are valid and in full force and effect,  and neither
Borrower  nor,  to the  best  of  Borrower's  knowledge,  Lender  is in  default
thereunder.  Borrower  has no defense,  setoff or  counterclaim  against  Lender
arising out of the Loan  Documents  or against the  payments  due under the Loan
Documents  or in  any  way  relating  thereto,  or  arising  out  of  any  other
transaction  between  Lender  and  Borrower,  and no event has  occurred  and no
condition  exists,  which with the giving of notice or the  passage of time,  or
both, will  constitute a default by Borrower under the Loan Documents.  Borrower
is current in the payment of amounts owing under the Loan Documents.

      6. There are no actions, whether voluntary or involuntary, pending against
Borrower,   Guarantor,   or  Bluegreen  Vacations  Unlimited,   Inc.  under  any
insolvency,  bankruptcy  or other  debtor  relief  laws of the United  States of
America or any of its constituent States.

      7.  Lender  is  holding  no  funds  for  Borrower's   account  other  than
_____________.

                                      C-1
<PAGE>

Date:  ______________, 200__             BORROWER:

                                         BLUEGREEN/BIG CEDAR VACATIONS, LLC,
                                         a Delaware limited liability company

                                         By
                                            ------------------------------------

                                            ------------------------------------
                                                  [Printed name and title]

                                      C-2
<PAGE>

                                 ACKNOWLEDGEMENT

STATE OF                         )
         ------------------------
                                 ):SS
COUNTY OF                        )
          -----------------------

The foregoing instrument was acknowledged before me on _______________,  2007 by
_________________________,   the   _________________   of  Bluegreen/Big   Cedar
Vacations,   LLC,   who   is   personally   known   to   me  or   has   produced
_________________________ as identification.

                                       -----------------------------
                                       Notary Public
                                       Print Name:  _________________________

                                       (AFFIX NOTARIAL SEAL)

                                      C-3
<PAGE>

                           GUARANTOR'S ACKNOWLEDGMENT

      The  undersigned  (a) has guaranteed the obligations of the Borrower under
the Loan  Documents  referred  to above,  (b)  consents to the matters set forth
above and agrees to be bound  thereby,  and (c)  acknowledges  that the guaranty
executed  by the  undersigned  is in full  force  and  effect  and  will  not be
supplemented,  modified, amended or terminated without the prior written consent
of the Lender.

                                           Guarantor:

                                           BLUEGREEN CORPORATION,
                                           a Massachusetts corporation

                                           By:
                                              ----------------------------------
                                              Name:
                                                   -----------------------------
                                              Title:
                                                    ----------------------------

                                      C-4
<PAGE>

                                    Exhibit D

                            AVAILABILITY PERCENTAGES

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------

      Spread between Borrower's weighted average                               Availability
  note receivable coupon and Lender's Interest Rate        Adjustment           Percentage
----------------------------------------------------------------------------------------------
<S>                                                           <C>            <C>
                     >/= 6.00%                                0.0%                 97.0%
----------------------------------------------------------------------------------------------
               < 6.00% but >/= 5.60%                          1.0%                 96.0%
----------------------------------------------------------------------------------------------
               < 5.60% but >/= 5.20%                          2.0%                 95.0%
----------------------------------------------------------------------------------------------
               < 5.20% but >/= 4.80%                          3.0%                 94.0%
----------------------------------------------------------------------------------------------
               < 4.80% but >/= 4.40%                          4.0%                 93.0%
----------------------------------------------------------------------------------------------
               < 4.40% but >/= 4.00%                          5.0%                 92.0%
----------------------------------------------------------------------------------------------
               < 4.00% but >/= 3.60%                          6.0%                 91.0%
----------------------------------------------------------------------------------------------
               < 3.60% but >/= 3.20%                          7.0%                 90.0%
----------------------------------------------------------------------------------------------
                     < 3.20%                                  N/A            No Availability
----------------------------------------------------------------------------------------------
</TABLE>

Note:

Lender utilized the average coupon of 14.0%, as the Borrower's  weighted average
note receivable coupon.

                                      D-1
<PAGE>

                                    Exhibit E

                               REQUEST FOR ADVANCE

DATE: ___________________________

GENERAL ELECTRIC CAPITAL CORPORATION
Attn:  Asset Manager
500 West Monroe St.
Chicago, Illinois 60661

      RE:   Loan No. 77287
            $45,000,000 credit facility described in that certain Loan and
            Security Agreement (the "Loan Agreement") between GENERAL
            ELECTRIC CAPITAL CORPORATION ("Lender") and BLUEGREEN/BIG
            CEDAR VACATIONS, LLC ("Borrower")

Dear Sir or Madam:

            In accordance with the terms of the Loan Agreement,  Borrower wishes
to   obtain  an   Advance   of   $_______________________   under  the  Loan  on
___________________,  20____. All terms used herein, unless otherwise specified,
shall  have the  meanings  assigned  in the Loan  Agreement.  In order to induce
Lender to make such Advance, Borrower hereby represents and warrants to Lender:

            1. No Event of Default or  Potential  Default  has  occurred or will
occur as a result of the Advance requested herein.

            2.  The  representations  and  warranties   contained  in  the  Loan
Agreement  are true,  correct and complete in all material  respects to the same
extent  as  though  made  on the  date  of the  Loan  Agreement  except  for any
representation  or warranty  limited by its terms to a specific  date and taking
into  account any  amendments  to the  schedules  or exhibits as a result of any
subsequent  disclosures  made by Borrower in writing to, and approved in writing
by, Lender.

            3.  Borrower  is in  compliance  with  each  and  every  one  of its
covenants, agreements and obligations under the Loan Agreement.

            4. (a) As of the date hereof,  the weighted average interest rate of
the Eligible Notes Receivable which are the subject of this Request for Advance,
is no less than fourteen percent (14%) per annum; and

               (b) any  Financed  Notes  Receivable  that have been  modified or
altered  have been  modified or altered in  compliance  with Section 5.15 of the
Loan Agreement.

            5.  Borrower  has no defenses or offsets with respect to the payment
of any amounts due Lender.

                                      E-1
<PAGE>

            6. Lender has performed all of its obligations to Borrower.

            7. All of the documents described in Schedule A attached hereto meet
all of the requirements of Eligible Notes Receivable.

            8. Borrower shall grant Lender a security  interest in and lien upon
those  certain  Eligible  Notes  Receivable  and  other  documents  executed  in
connection  with the sale of  Timeshare  Interests  as set forth in  Schedule  A
attached hereto.

            9. No  Purchaser  has any  asserted  or,  to the best of  Borrower's
knowledge,  threatened defense, offset,  counterclaim,  discount or allowance in
respect of each Eligible Note  Receivable to be pledged in connection  with this
Advance.  Borrower  has no  knowledge of any facts which would lead a reasonable
person to conclude that any particular Eligible Note Receivable to be pledged in
connection with this Advance shall not be paid in accordance with its terms.

            10. Borrower's  wiring  instructions are attached hereto as Schedule
B.

                                     BORROWER:

                                     BLUEGREEN/BIG CEDAR VACATIONS, LLC,
                                     a Delaware limited liability company

                                     By:
                                         ---------------------------------------
                                     Name:
                                           -------------------------------------
                                     Its:
                                          --------------------------------------

Schedule A:  Description  of New Eligible  Notes  Receivable  and other Purchase
Documents

Schedule B: Wiring Instructions

                                      E-2
<PAGE>

                                    Exhibit F

                COLLATERAL ASSIGNMENT OF PURCHASE MONEY MORTGAGES
                                 ("Assignment")

Dated: _________________________

Grantor:  (Assignor)  Bluegreen/Big  Cedar  Vacations,  LLC, 4960 Conference Way
North, Suite 100, Boca Raton, FL 33431

Grantee:  (Assignee)  General  Electric  Capital  Corporation,  500 West  Monroe
Street, Chicago, Illinois 60661

      WHEREAS,  Assignor  and  Assignee  have  entered  into a Loan and Security
Agreement,  dated as of April 16, 2007 (as amended from time to time,  the "Loan
Agreement"),  pursuant to which Assignee has agreed to lend,  upon the terms and
conditions set forth in the Loan  Agreement,  up to Forty-Five  Million  Dollars
($45,000,000.00)  (the  "Loan")  to  Assignor  to be  evidenced  by a  Revolving
Promissory Note,  dated April 16, 2007 (together with any renewals,  extensions,
substitutions  or modifications  thereof,  the "Note") and secured by a security
interest  granted by Assignor to Assignee on certain  Financed Notes  Receivable
and the  Purchase  Documents  and  Mortgages  related  thereto  as well as other
Collateral  of  Assignor  (as such  terms are  defined  in the Loan  Agreement).
Capitalized  terms used herein and not defined  shall have the meaning set forth
for them in the Loan Agreement.

      NOW THEREFORE,  to secure the payment and performance of the  Indebtedness
and other obligations of Assignor to Assignee under the Loan Agreement, the Note
and the other Loan Documents (as such term is defined in the Loan Agreement) and
in  consideration  of the extension of the Loan to Assignor,  Assignor as record
holder to certain mortgages dated,  recorded and more particularly  described in
Schedule 1, attached  hereto  ("Mortgages")  affecting  property  located at the
resort in the County of Taney,  State of  Missouri  having the  following  legal
description:

      Timeshare  Interest(s)  consisting  of an undivided  1/52nd (if Annual) OR
      1/104th  (if  Biennial)  Interest(s)  one  fifty-second  (1/52)  tenant in
      common,  undivided  interest,  as a fee  simple  estate,  in  each  of the
      below-described  Condominium  Unit(s),  in the Big Cedar  Wilderness  Club
      Condominium,  according to the  Declaration of Condominium  and Bylaws for
      The Big Cedar Wilderness Club  Condominium,  as recorded in Book 396, Page
      3727-3828 of the Office of the Recorder of Deeds, Taney County,  Missouri,
      as such  Declaration may now or hereafter be amended (the  "Declaration");
      together  with the  right to  occupy  in the  respective  season  in every
      calendar  year (if Annual) OR every  other  calendar  year (if  Biennial),
      pursuant to the Declaration,  the foregoing  Condominium Unit(s), and each
      comparable  Unit  which is subject to the  Flexible  Use Plan,  during any
      Flexible  Unit  Week(s)  within  that  same  season,  and  subject  to the
      provisions  of  the  Flexible  Use  Plan,  the   then-current   Rules  and
      Regulations  for the  Resort  and the  Declaration;  the  foregoing  being
      conveyed together with a one fifty-second (1/52) tenant in common interest
      in the  Allocated  Interests of such Unit(s) (the same being the undivided
      interest in the Common

                                      F-1
<PAGE>

      Elements,  the Common Expense  Liability,  and votes in the Association as
      allocated to the Unit(s) pursuant to the terms of the Declaration).

            An Annual  Unit  Week  allows  occupancy  and use of a Unit each and
            every  year.  An  Annual  Unit  Week  is  designated  with  an  "F,"
            indicating  a  Full  Timeshare  Interest.   A  Biennial  Unit  Week,
            indicating one-half of a Full Timeshare  Interest,  allows occupancy
            only  during Odd  Numbered  Years (and such Unit Week is  designated
            with an "O") or only during Even Numbered  Years (and such Unit Week
            is designated with an "E").

does  hereby  collaterally  convey,  assign,  transfer  and set over to  General
Electric Capital Corporation,  a Delaware corporation  ("Assignee'),  all right,
title and  interest  of  Assignor  in the  Mortgages,  and all right,  title and
interest in and to the  promissory  note or notes  referred to in said Mortgages
referred to in Schedule 1 (the  "Notes"),  with recourse and  warranty,  and all
documents  and  instruments  securing said Notes,  whether or not  referenced in
Schedule 1, and all monies,  proceeds and awards,  including without limitation,
interest,  due or to become due thereon or with respect thereto, as set forth in
the Loan Agreement.

Taney County, MO

      IN WITNESS WHEREOF,  Assignor has caused this Assignment of Purchase Money
Mortgages to be duly executed on the date first above written.

                                           Bluegreen/Big Cedar Vacations, LLC,
                                           a Delaware limited liability company

                                           By:
                                               ---------------------------------
                                           Name:
                                                 -------------------------------
                                           Title:
                                                  ------------------------------

                                      F-2
<PAGE>

STATE OF                  )
                          ):SS
COUNTY OF                 )

The foregoing instrument was acknowledged before me on _______________,  2007 by
_________________________,  as  _________________________ of Bluegreen/Big Cedar
Vacations, LLC, a Delaware limited liability company, who is personally known to
me or has produced _________________________ as identification.

                                           -------------------------
                                           Notary Public
                                           Print Name:  ________________________

                                           (AFFIX NOTARIAL SEAL)

                   Prepared by and After Recording Return to:
                                 Janet Konstand
                    Bluegreen Corporation - Mortgage Funding
                      4960 Conference Way North, Suite 100
                              Boca Raton, FL 33431

                                Taney County, MO

                                      F-3
<PAGE>

                                   Schedule 1

             ASSIGNMENT OF CONTRACTS, NOTES RECEIVABLE AND MORTGAGES

<TABLE>
<CAPTION>
                                                                                     Mortgage
               Unit                                  Mortgage        Mortgage        Recording     Recording      Recording
  Name        Number      Week      Subdivision       Amount       Document No.        Date          Book           Page
  ----        ------      ----      -----------       ------       ------------        ----          ----           ----
<S>           <C>        <C>         <C>             <C>           <C>               <C>           <C>            <C>

</TABLE>

                                      F-4
<PAGE>

                                    Exhibit H

                               FORM OF ENDORSEMENT

            Pay to the order of GENERAL ELECTRIC CAPITAL CORPORATION,  with full
recourse and warranty.

                                         BLUEGREEN/BIG CEDAR VACATIONS, LLC,
                                         a Delaware limited liability company

                                         By:
                                              ----------------------------------
                                         Name:
                                                --------------------------------
                                         Its:
                                               ---------------------------------

                                      H-1
<PAGE>

                                    Exhibit I

                          SPECIFIC OPERATING CONTRACTS

                               Operating Contracts

1.    Refer to Items 1-18 on Schedule 4.13.

2.    Management  Agreement,  dated  January 1, 2002,  by and  between Big Cedar
      Wilderness  Club  Condominium  Association,  Inc.  and  Bluegreen  Resorts
      Management, Inc.

3.    Agreement for the Purchase of Electric  Power and Energy,  dated  November
      13,  2001,  between  White River  Valley  Electric  Cooperative,  Inc. and
      Bluegreen/Big Cedar Vacations, LLC.

4.    Lease, dated 2005, by and between  Bluegreen/Big Cedar Vacations,  LLC and
      Jerry's Boat & Mini Storage.

                                      I-1
<PAGE>

                                    Exhibit J

                              PERMITTED EXCEPTIONS

1.    Covenants  and  Restrictions  recorded July 14, 1967 in Book 181, Page 27,
      Taney County, Missouri Recorder's Office.

2.    Covenants  and  Restrictions  recorded June 24, 1971 in Book 202, Page 61,
      Taney County, Missouri Recorder's Office.

3.    Covenants  and  Restrictions  recorded June 24, 1971 in Book 202, Page 62,
      Taney County, Missouri Recorder's Office.

4.    Covenants  and  Restrictions  recorded June 24, 1971 in Book 202, Page 63,
      Taney County, Missouri Recorder's Office.

5.    Covenants and  Restrictions  recorded July 15, 1971 in Book 202, Page 127,
      Taney County, Missouri Recorder's Office.

6.    Covenants and Restrictions recorded August 31, 1971 in Book 202, Page 241,
      Taney County, Missouri Recorder's Office.

7.    Covenants and Restrictions recorded August 31, 1971 in Book 202, Page 330,
      Taney County, Missouri Recorder's Office.

8.    Covenants and  Restrictions  recorded July 1, 1980 in Book 251, Page 1520,
      Taney County, Missouri Recorder's Office.

9.    Covenants and Restrictions  recorded June 23, 2000 in Book 371, Page 2829,
      Taney County, Missouri Recorder's Office.

10.   Terms and provisions of the  Subordination and  Non-Disturbance  Agreement
      recorded  August 17, 2000 in Book 373, Page 3340,  Taney County,  Missouri
      Recorder's Office.

11.   Easement  agreement  recorded August 3, 2000 in Book 371, Page 2834, Taney
      County, Missouri Recorder's Office.

12.   Easement  agreement  recorded August 3, 2000 in Book 372, Page 6840, Taney
      County, Missouri Recorder's Office.

13.   UCC  Financing  Statement  filed August 3, 2000,  in Book 372,  Page 6833,
      executed  by Big Cedar  L.L.C.  to  Bluegreen  Vacations  Unlimited,  Inc.
      affecting the items therein  described,  which have become  affixed to the
      premises in question.

14.   Terms,  provisions,   restrictive  covenants,  conditions,   reservations,
      rights,  duties  and  easements  contained  in the  Amended  and  Restated
      Declaration of Condominium  and Bylaws for the BIG CEDAR  WILDERNESS  CLUB
      CONDOMINIUM,  and any Exhibits annexed thereto,  including but not limited
      to,  provisions for a private  charge or assessments  and a right of first
      refusal  or the prior  approval  of a future  purchaser  or  occupant,  as
      recorded in

                                      J-1
<PAGE>

      Book 478, Pages 7189-7322,  of the Taney County Recorder's Office, and any
      amendments thereto, together with the corresponding percentage interest in
      the common elements and limited common elements appurtenant thereto.

In addition, Permitted Exceptions shall mean and include:

      (i)   Liens for state, municipal and other local taxes if such taxes shall
            not at the time be due and payable;

      (ii)  Liens in favor of Lender pursuant to the Loan Agreement;

      (iii) Materialmen's, warehousemen's, mechanics' and other Liens arising by
            operation  of law in the  ordinary  course of business  for sums not
            due;

      (iv)  The Purchaser's  interest in the Timeshare  Interest relating to the
            Financed  Note  Receivable   whether  pursuant  to  the  Club  Trust
            Agreement or otherwise;

      (v)   Any Owner Beneficiary Rights.

                                      J-2
<PAGE>

                                    Exhibit K

                                  SALES REPORT

                                      K-1
<PAGE>

                           LOAN AND SECURITY AGREEMENT

                                     between

                       BLUEGREEN/BIG CEDAR VACATIONS, LLC,

                      a Delaware limited liability company

                                    BORROWER

                                       and

                      GENERAL ELECTRIC CAPITAL CORPORATION,

                             a Delaware corporation

                                     LENDER

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page

ARTICLE 1 THE LOAN............................................................17
        1.1    The Loan.......................................................17
        1.2    Advances of Loan Proceeds......................................17
        1.3    Interest Rate..................................................18
        1.4    Payments; Term.................................................19
        1.5    Prepayments....................................................19
        1.6    Commitment Fee.................................................21
        1.7    Receipt of Payments............................................21
        1.8    Taxes..........................................................21
        1.9    Single Loan....................................................22
        1.10   Application of Advances........................................22

ARTICLE 2 COLLATERAL..........................................................22
        2.1    Grant of Security Interest.....................................22
        2.2    Security Agreement.............................................23

ARTICLE 3 INSURANCE, CONDEMNATION AND IMPOUNDS................................23
        3.1    Insurance......................................................23
        3.2    Use and Application of Insurance Proceeds......................25
        3.3    Condemnation...................................................25

ARTICLE 4 REPRESENTATIONS AND WARRANTIES......................................26
        4.1    Organization and Power.........................................26
        4.2    Validity of Loan Documents.....................................26
        4.3    Liabilities; Litigation; Other Secured Transactions............26
        4.4    Taxes and Assessments..........................................27
        4.5    Other Agreements; Defaults.....................................27
        4.6    Compliance with Law............................................27
        4.7    Location of Borrower...........................................27
        4.8    ERISA..........................................................27
        4.9    Margin Stock...................................................28
        4.10   Tax Filings....................................................28
        4.11   Solvency.......................................................28
        4.12   Full and Accurate Disclosure...................................28
        4.13   Contracts with Affiliates; Subordinated Indebtedness...........29
        4.14   Intellectual Property..........................................29
        4.15   Title; Prior Liens.............................................29
        4.16   Intentionally Deleted..........................................30
        4.17   Eligible Notes.................................................30
        4.18   Intentionally Deleted..........................................30
        4.19   Representations as to the Association..........................30
        4.20   Operating Contracts............................................31
        4.21   Consumer Law Matters...........................................31

                                       -i-
<PAGE>

ARTICLE 5 COVENANTS...........................................................31
        5.1    Due on Sale and Encumbrance; Transfers of Interests............31
        5.2    Taxes; Charges.................................................32
        5.3    Control; Management............................................32
        5.4    Operation; Maintenance; Inspection.............................33
        5.5    Taxes on Security..............................................33
        5.6    Legal Existence; Name, Etc.....................................33
        5.7    Affiliate Transactions.........................................34
        5.8    Further Assurances.............................................34
        5.9    Estoppel Certificates..........................................34
        5.10   Notice of Certain Events.......................................34
        5.11   Indemnification................................................35
        5.12   Application of Loan Proceeds/Operating Revenues................35
        5.13   Compliance with Laws...........................................35
        5.14   Litigation and Proceeding......................................36
        5.15   Collateral.....................................................36
        5.16   Sale of Collateral; Proceeds...................................37
        5.17   Intentionally Deleted..........................................37
        5.18   Performance of Operating Contracts.............................37
        5.19   Servicing of Financed Notes Receivable.........................37
        5.20   Custodian......................................................38
        5.21   Maintenance....................................................38
        5.22   Records........................................................38
        5.23   Other Documents................................................38
        5.24   Inspections and Audits.........................................38
        5.25   Notices Regarding Lender's Interests...........................39
        5.26   Payment of Charges.............................................39
        5.27   Amendment of Timeshare Documents...............................40

ARTICLE 6 FINANCIAL COVENANTS; REPORTING REQUIREMENTS.........................40
        6.1    Financial Covenants............................................40
        6.2    Reporting Requirements.........................................40

ARTICLE 7 EVENTS OF DEFAULT...................................................43
        7.1    Payments.......................................................43
        7.2    Insurance......................................................43
        7.3    Transfer.......................................................43
        7.4    Covenants......................................................43
        7.5    Representations and Warranties.................................43
        7.6    Other Encumbrances.............................................43
        7.7    Involuntary Bankruptcy or Other Proceeding.....................43
        7.8    Voluntary Petitions, Etc.......................................44
        7.9    Suspension of Sales............................................44
        7.10   Default by Borrower in Other Agreements........................44
        7.11   Other Agreements...............................................44

ARTICLE 8 REMEDIES............................................................44
        8.1    Remedies - Insolvency Events...................................44

                                      -ii-
<PAGE>

        8.2    Remedies - Other Events........................................44
        8.3    Lender's Right to Perform the Obligations......................45
        8.4    Remedies Upon Default..........................................45
        8.5    Funds of Lender................................................46
        8.6    Application of Collateral; Termination of Agreements...........46
        8.7    Direct Disbursement and Application by Lender..................46
        8.8    Waivers........................................................46
        8.9    Commercial Reasonableness......................................47
        8.10   Cumulative Rights..............................................47
        8.11   Intercreditor Agreement........................................47

ARTICLE 9 CERTAIN RIGHTS OF LENDER............................................48
        9.1    Protection of Collateral.......................................48
        9.2    Performance by Lender..........................................48
        9.3    Costs..........................................................48
        9.4    Assignment of Lender's Interest................................48
        9.5    Notice to Purchasers...........................................48
        9.6    Collection of Notes............................................48
        9.7    Power of Attorney..............................................49

ARTICLE 10 ANTI-MONEY LAUNDERING AND INTERNATIONAL TRADE CONTROLS.............49
        10.1   Compliance with International Trade Control Laws and OFAC
               Regulations....................................................49
        10.2   Borrower's Funds...............................................50

ARTICLE 11 ENVIRONMENTAL MATTERS..............................................51
        11.1   Representations and Warranties on Environmental Matters........51
        11.2   Covenants on Environmental Matters.............................51

ARTICLE 12 MISCELLANEOUS......................................................53
        12.1   Notices........................................................53
        12.2   Amendments and Waivers; References.............................54
        12.3   Limitation on Interest.........................................54
        12.4   Invalid Provisions.............................................55
        12.5   Reimbursement of Expenses......................................55
        12.6   Approvals; Third Parties; Conditions...........................55
        12.7   Lender Not in Control; No liability or Partnership.............56
        12.8   Time of the Essence............................................56
        12.9   Successors and Assigns.........................................56
        12.10  Renewal, Extension, Rearrangement, Loan Outplacement...........56
        12.11  Waivers........................................................57
        12.12  Cumulative Rights..............................................57
        12.13  Singular and Plural............................................57
        12.14  Phrases........................................................57
        12.15  Exhibits and Schedules.........................................58
        12.16  Titles of Articles, Sections and Subsections...................58
        12.17  Promotional Material...........................................58

                                      -iii-
<PAGE>

        12.18  Survival.......................................................58
        12.19  WAIVER OF JURY TRIAL...........................................58
        12.20  Punitive or Consequential Damages; Waiver......................58
        12.21  Governing Law..................................................59
        12.22  Entire Agreement...............................................59
        12.23  Counterparts...................................................59
        12.24  Limitation on Liability of Borrower's, Guarantor's and
               Lender's Officers, Employees, Etc..............................59
        12.25  Venue..........................................................59

INDEX OF EXHIBITS AND SCHEDULES

Schedule 1.1:     Advance Conditions
Schedule 2.3:     Form of Reassignment of Security Instrument
                  Exhibit 1:  Reassignment of Contracts, Notes Receivable and
                  Mortgages
Schedule 4.1:     Organizational Matters
Schedule 4.13     Contracts with Affiliates
Schedule 4.17     Description of Amenities]
Schedule 5.11     Litigation
Schedule 5.13     Jurisdictions of Sales
Exhibit A:        Land
Exhibit B:        Form of Availability Report
Exhibit C:        Form of Borrower Estoppel
Exhibit D:        Availability Percentages
Exhibit E:        Request for Advance
Exhibit F:        Form of Collateral Assignment of Contracts,
                  Notes Receivable and Mortgages
                  Schedule 1:  List of Notes Receivable and Purchase Documents
                  and Mortgages, together with all necessary land record
                  information.
Exhibit H:        Form of Endorsement
Exhibit I:        Specific Operating Contracts
Exhibit J:        Permitted Exceptions
Exhibit K:        Sales Report

                                      -iv-Exhibit 10.88

                            REVOLVING PROMISSORY NOTE

$45,000,000.00                                                    April 16, 2007

            For value received,  BLUEGREEN/BIG CEDAR VACATIONS,  LLC, a Delaware
limited liability company ("Borrower"),  promises and agrees to pay to the order
of GENERAL ELECTRIC CAPITAL CORPORATION,  a Delaware corporation ("Lender"),  in
lawful  money  of  the  United   States  of  America,   the   principal  sum  of
$45,000,000.00  or so much  thereof  as may be  outstanding  under  the Loan and
Security  Agreement of even date herewith between Borrower and Lender (the "Loan
Agreement"),  with interest on the unpaid  principal sum owing thereunder at the
rate or rates or in the amounts  computed in accordance with the Loan Agreement,
together with all other amounts due Lender under the Loan Agreement, all payable
in the  manner  and  at the  time  or  times  provided  in the  Loan  Agreement.
Capitalized terms used herein, but not defined, shall have the meanings assigned
to them in the Loan Agreement.

            If not sooner due and payable in accordance with the Loan Agreement,
Borrower shall pay to Lender all amounts due and unpaid under the Loan Agreement
on April 16,  2016.  Unless  otherwise  specified in writing by Lender or as set
forth in the Lockbox  Agreement,  all payments hereunder shall be paid to Lender
at GEMSA Loan Services,  L.P., File 55307,  Los Angeles,  CA 90074-5307.  Lender
reserves the right to require,  upon five (5) Business Days prior written notice
to  Borrower,  any  payment  on this  Note,  whether  such  payment is a regular
installment,  prepayment or final payment, to be by wired federal funds or other
immediately available funds. All payments to Lender shall be drawn on an account
owned by Borrower or another Person approved in writing in advance by Lender and
maintained  at a banking  institution  organized  under  the laws of the  United
States or one of its constituent States, or at a federally-regulated  securities
broker-dealer. For purposes of the foregoing sentence, the Lockbox Account shall
be deemed to be sufficient to satisfy the foregoing.

            Borrower expressly waives demand and presentment for payment, notice
of nonpayment,  protest, notice of protest, notice of dishonor, notice of intent
to accelerate the maturity  hereof,  notice of the  acceleration of the maturity
hereof,  bringing of suit and diligence in taking any action to collect  amounts
called for hereunder and in the handling of any  Collateral at any time existing
in  connection  herewith;  Borrower  and  Guarantor  are and  shall be  jointly,
severally,  directly and primarily  liable for the payment of all sums owing and
to be owing  hereon,  regardless  of and without any notice,  diligence,  act or
omission as or with respect to the collection of any amount called for hereunder
or in connection with any right, lien, interest or property at any and all times
had or existing as Collateral for any amount called for hereunder.

            This Revolving  Promissory Note evidences all Advances made or to be
made,  interest  due and all  amounts  otherwise  owed to Lender  under the Loan
Agreement.  This Note is executed in conjunction  with the Loan Agreement and is
secured by the liens and security  interests  created under the Loan  Documents.
Reference is made to the Loan Agreement for provisions  relating to repayment of
the indebtedness evidenced by this Note, including

                                      -1-
<PAGE>

mandatory repayment,  acceleration following default, late charges, default rate
of interest, limitations on interest and restrictions on prepayment.

            This Note has been  executed and delivered in and shall be construed
in accordance  with and governed by the laws of the State of Illinois and of the
United States of America.

            Executed as of the date first written above.

                                           BLUEGREEN/BIG CEDAR VACATIONS, LLC,
                                           a Delaware limited liability company

                                           By:
                                                 -------------------------------
                                           Name:
                                                 -------------------------------
                                           Title:
                                                 -------------------------------

                                      -2-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]