Document:

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Exhibit 10.22

                       PLEDGE AND ASSIGNMENT OF PUT AND
                   RESERVE AGREEMENT AND INTERVAL MORTGAGES

      This PLEDGE AND ASSIGNMENT OF CONSUMER NOTES RECEIVABLE AND INTERVAL
MORTGAGES (the "Collateral Assignment") is made this 30th day of September, by
RESORT FUNDING, INC., a Delaware corporation, the address of which is Two
Clinton Square, Syracuse, New York 13202 ("Assignor"), to and in favor of FINOVA
CAPITAL CORPORATION, a Delaware corporation, the address of which is 7272 East
Indian School Road, Suite 410, Scottsdale, Arizona 85251 ("Assignee").

                                  WITNESSETH:
                                  ----------

      WHEREAS, Assignor and Assignee are parties to that certain Loan and
Security Agreement dated September 30, 1999 (the "Loan Agreement"), pursuant to
which Assignee agreed to make a loan to Assignor in the maximum principal amount
of Twenty Million and No/100 Dollars ($20,000,000.00) (the "Loan"); and

      WHEREAS, as Collateral to secure payment of the Loan, Assignor has agreed
to collaterally pledge and assign unto Assignee all of Assignor's right, title,
and interest in and to certain put and reserve agreements, mortgages, and the
Liens and security interests created thereby; and

      WHEREAS, one (1) or more Applicable Underlying Borrowers have delivered to
Assignor certain Put and Reserve Agreements, Purchased Consumer Notes Receivable
and assigned to Assignor, certain Interval Mortgages, all as more particularly
described in Exhibit "A", attached hereto and incorporated herein by this
reference (hereinafter collectively described as the "Assigned Collateral"); and

      NOW, THEREFORE, in consideration of the foregoing and other good and
valuable consideration, the receipt and adequacy of which are hereby
acknowledged by Assignor, Assignor, intending to be legally bound, hereby
covenants and agrees with Assignee as follows:

      1. Unless otherwise expressly provided herein to the contrary or unless
the context otherwise requires, all capitalized terms used herein shall have the
meanings ascribed to them in the Loan Agreement.

<PAGE>

9

11728.18700.420860-2
      2. Assignor has collaterally assigned, pledged, and granted and, for value
received, does hereby collaterally assign, pledge, and grant to and in favor of
Assignee a Lien and continuing security interest in and to all of Assignor's
right, title, and interest in and to the Put and Reserve Agreements, Purchased
Consumer Notes Receivable and the Interval Mortgages described in Exhibit "A"
hereto, together with all other Collateral appurtenant thereto, connected
therewith, or substituted or replaced therefor, and all cash and non-cash
proceeds thereof and profits derived therefrom (hereinafter sometimes
collectively referred as the "Assigned Collateral").

      3. This Collateral Assignment is executed and delivered by Assignor in
favor of Assignee pursuant to the Loan Agreement. Upon and after an Event of
Default thereunder, Assignee shall have all the rights and remedies provided for
hereunder, pursuant to the Loan Agreement, and by applicable law.

      4.    Assignor hereby represents and warrants to Assignee,  and covenants and agrees
with Assignee, that:

            (a) The Borrower holds and, for so long as the Obligations or any
portion thereof remain unsatisfied, shall retain, good and marketable title to
all Assigned Collateral, free and clear of any Lien, security interest, charge,
or encumbrance except for the Permitted Liens and Encumbrances and those Liens
created by this Collateral Assignment or any other Loan Document or Applicable
Underlying Transaction Document or otherwise in favor of Assignee.

            (b) The Interval Mortgages described in Exhibit "A" (and any related
collateral for the Pledged Put and Reserve Agreements or Purchased Consumer
Notes Receivable described in Exhibit "A") secure the unpaid principal balances
of said Pledged Put and Reserve Agreements or Purchased Consumer Notes
Receivable, together with all accrued but unpaid interest thereon, and give rise
to valid and perfected continuing first priority Liens and security interests in
favor of the Applicable Underlying Borrower upon the Intervals described in such
Mortgages.

            (c) Assignor is, and for so long as the Obligations or any portion
thereof remain unsatisfied, shall be, the assignee of, and the owner and holder
of a continuing, valid, and perfected first priority Lien and security interest
in and to, the subject Pledged Put and Reserve Agreements, Purchased Consumer
Notes Receivable, Interval Mortgages, and other Assigned Collateral, and the
rights hereby conveyed to Assignee by Assignor are not and shall not be subject
or subordinate to the rights of any Person; provided, however, that pursuant to
the Loan Documents, Assignee may, in its sole discretion, assign to any Person
Assignee's right, title, or interest in and to all or any portion of the
Assigned Collateral.

            (d) Assignor has full right, power, and authority to assign, pledge,
and grant to Assignee a Lien and continuing security interest in and to the
Assigned Collateral, and the grant, pledge, and assignment thereof does not and
will not violate or result in a breach or default (with the giving of notice,
the passage of time, or otherwise) under the Pledged Put and Reserve Agreements,
Purchased Consumer Notes Receivable, the Interval Mortgages, any Applicable
Underlying Transaction Document, any Applicable Timeshare Document, or any
Applicable Laws.

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            (e) Each of the Pledged Put and Reserve Agreements, Purchased
Consumer Notes Receivable and Interval Mortgages described in Exhibit "A" hereto
arises from the bona fide sale by an Applicable Underlying Borrower of an
Interval at a Qualified Resort, consummated in accordance with the Applicable
Timeshare Documents and all Applicable Laws, and each such Pledged Put and
Reserve Agreement is an Eligible Receivable.

            (f) To the best of Assignor's knowledge after good faith diligent
inquiry: (i) none of the subject Pledged Put and Reserve Agreements, Purchased
Consumer Notes Receivable nor the Interval Mortgages are forged or have affixed
thereto any unauthorized signatures or have been entered into by any Person who
does not possess the requisite legal capacity; (ii) the subject Pledged Put and
Reserve Agreements, Purchased Consumer Notes Receivable and Interval Mortgages
are in full force and effect and constitute valid and legally enforceable
obligations of the applicable Purchasers or other obligors; (iii) none of the
applicable Purchasers or other obligors have any defense, offset, claim, or
counterclaim relating to the subject Pledged Put and Reserve Agreements,
Purchased Consumer Notes Receivable, Interval Mortgages, or any other Applicable
Underlying Loan Documents; and (iv) there is no default or event which, with the
passage of time or the giving of notice, would give rise to a default thereunder
by any applicable Purchaser or other obligor as of the date hereof.

            (g) Assignor has not assigned, pledged, or granted and, for so long
as the Obligations or any portion thereof remain unsatisfied, will not assign,
pledge, or grant any of its right, title, or interest in or to the subject
Pledged Put and Reserve Agreements, Purchased Consumer Notes Receivable,
Interval Mortgages, or any other Assigned Collateral except in favor of
Assignee, and Assignor agrees that any purported assignment, pledge, or grant of
any of such Assigned Collateral shall be null and void and of no legal effect
whatsoever.

            (h) Assignor has not and, for so long as the Obligations or any
portion thereof remain unsatisfied, will not, without Assignee's prior written
consent, cause or permit any amendment, modification, extension, or termination
(other than by payment in full) of the subject Pledged Put and Reserve
Agreements, Purchased Consumer Notes Receivable or Interval Mortgages without
the prior written consent of Assignee, nor will Assignor waive, excuse, condone,
forgive, or in any manner release or discharge any material obligations,
covenants, warranties, conditions, or agreements to be performed by the
applicable Purchasers or other obligors under the Pledged Put and Reserve
Agreements, Purchased Consumer Notes Receivable, Interval Mortgages, or any
other Applicable Underlying Loan Document without the prior written consent of
Assignee, and Assignor agrees that any such purported act without such consent
shall be null and void and of no legal effect whatsoever.

            (i) This Collateral Assignment has been duly authorized, executed,
and delivered by Assignor and constitutes the legal, valid, and binding
obligation of Assignor, enforceable against Assignor in accordance with its
terms.

            (j) To the extent required by the Applicable Underlying Loan
Documents, the Applicable Underlying Borrower and the Applicable Underlying
Guarantor have consented to the

<PAGE>

terms, provisions, and conditions of this Collateral Assignment, including but
not limited to the collateral assignment, pledge, and grant effected hereby.

      5. This Collateral Assignment is executed and delivered only for the
purpose of providing collateral security for the Obligations and shall not
constitute or be interpreted as an absolute assignment of Assignor's rights and
obligations under the subject Pledged Put and Reserve Agreements, Purchased
Consumer Notes Receivable and Interval Mortgages. Neither the execution,
delivery, nor recordation of this Collateral Assignment shall render Assignee
liable in any manner whatsoever for any obligations, duties, or liabilities of
Assignor pursuant to the subject Pledged Put and Reserve Agreements, Mortgages,
or any other Applicable Underlying Transaction Document. Assignor hereby
expressly acknowledges that Assignee has not assumed any of the obligations,
duties, or liabilities of Assignor under or with respect to any of the Assigned
Collateral, including but not limited to any obligation to advance funds to the
applicable Purchasers or other obligors under the subject Pledged Put and
Reserve Agreements or any other Applicable Underlying Transaction Document.
Assignee shall not be required to make any inquiry as to the nature or
sufficiency of any payment received by it, to present or file any claim, or to
take any other action to collect or enforce the payment of any amounts that may
have been assigned to it or the performance of any obligations to which it may
be entitled hereunder.

      6. Assignor covenants and agrees that it will give Assignee prompt written
notice of any notice that Assignor receives under or in respect of any Pledged
Put and Reserve Agreement, Purchased Consumer Notes Receivable or Interval
Mortgage, including but not limited to any notices of default.

      7. Assignor hereby irrevocably authorizes Assignee, at Assignor's sole
cost and expense, to file without Assignor's signature such financing and
continuation statements relating to this Collateral Assignment, and to deliver
notifications or certifications, as Assignee, in its sole discretion, deems
reasonably necessary or appropriate in order to protect its right, title, and
interest in and to the Assigned Collateral; and Assignor hereby appoints
Assignee as Assignor's true and lawful attorney-in-fact to execute any such
statements in Assignor's name and to perform all other acts that Assignee, in
its sole discretion, deems reasonably necessary or appropriate in order to
perfect and continue, and realize upon, the Liens and security interests
conferred pursuant to this Collateral Assignment and the other Transaction
Documents.

      8. Assignor agrees that at any time and from time to time, promptly upon
the reasonable request of Assignee or any successor or assign thereof, it will
execute and deliver such further documents and instruments and perform such
further acts as Assignee (or its successor or assign) may reasonably request in
order to effectuate the purposes and intent of this Collateral Assignment.

      9. Upon the complete and final discharge and satisfaction of all of the
Obligations, all rights herein assigned to Assignee shall cease and terminate
and Assignee shall, at Assignor's sole cost and expense, execute and deliver to
Assignor such documents, instruments, and

<PAGE>

termination statements as Assignor may reasonably request in order to evidence
the termination of Assignee's rights hereunder.

      10. This Collateral Assignment shall be binding on Assignor and its
successors and assigns and inure to the benefit of Assignee and its successors,
assigns, and participants, if any. Assignee shall have the right to assign to
any Person permitted by the Loan Agreement, from time to time, all or any
portion of the Assigned Collateral and its rights and interests hereunder and
thereunder; provided, however, that Assignee shall provide Assignor with prompt
written notice of any such assignment. The terms and provisions of this
Collateral Assignment may not be terminated or modified or amended orally or by
course of conduct or dealing or in any manner except in a writing that is signed
by the party against whom enforcement is sought.

<PAGE>

      11. THIS AGREEMENT (EXCEPT AS MAY BE EXPRESSLY PROVIDED HEREIN TO THE
CONTRARY) SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF ARIZONA, EXCLUSIVE OF ITS CHOICE OF LAWS PRINCIPLES. EACH OF ASSIGNOR
AND ASSIGNEE HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVES ANY RIGHT
IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION ARISING OUT OF,
UNDER, OR IN CONNECTION WITH THIS ASSIGNMENT OR THE TRANSACTIONS CONTEMPLATED
HEREIN OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR
WRITTEN), OR ACTIONS OF ANY PARTY. EACH OF ASSIGNOR AND ASSIGNEE FURTHER WAIVES
ANY RIGHT IT MAY HAVE TO SEEK TO CONSOLIDATE ANY SUCH LITIGATION IN WHICH A JURY
TRIAL HAS BEEN WAIVED WITH ANY OTHER LITIGATION IN WHICH A JURY TRIAL CANNOT OR
HAS NOT BEEN WAIVED. FURTHER, ASSIGNOR HEREBY CERTIFIES THAT NO REPRESENTATIVE
OR AGENT OF ASSIGNEE, INCLUDING ASSIGNEE'S COUNSEL, HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT ASSIGNEE WOULD NOT, IN THE EVENT OF SUCH LITIGATION, SEEK TO
ENFORCE THIS WAIVER OF RIGHT TO JURY TRIAL PROVISION. ASSIGNOR ACKNOWLEDGES THAT
THE PROVISIONS OF THIS SECTION ARE A MATERIAL INDUCEMENT TO ASSIGNEE'S
ACCEPTANCE OF THIS ASSIGNMENT AND THE OTHER LOAN DOCUMENTS. EACH OF ASSIGNOR AND
ASSIGNEE: (A) HEREBY IRREVOCABLY SUBMITS ITSELF TO THE PROCESS, JURISDICTION AND
VENUE OF THE COURTS OF THE STATE OF ARIZONA, MARICOPA COUNTY, AND THE PROCESS,
JURISDICTION, AND VENUE OF THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF
ARIZONA, FOR THE PURPOSES OF SUIT, ACTION OR OTHER PROCEEDINGS ARISING OUT OF OR
RELATING TO ANY DOCUMENT OF THE SUBJECT MATTER THEREOF, OR, IF ASSIGNEE
INITIATES SUCH ACTION, ANY COURT IN WHICH ASSIGNEE SHALL INITIATE SUCH ACTION,
AND THE CHOICE OF SUCH VENUE SHALL IN ALL INSTANCES BE AT ASSIGNEE'S ELECTION;
AND (B) WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, HEREBY WAIVES AND
AGREES NOT ASSERT BY WAY OF MOTION, DEFENSE OR OTHERWISE IN ANY SUCH SUIT,
ACTION OR PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM OR THAT THE VENUE OF
SUCH SUIT, ACTION OR PROCEEDING IS IMPROPER. EACH OF ASSIGNOR AND ASSIGNEE
HEREBY WAIVES THE RIGHT TO COLLATERALLY ATTACK ANY JUDGMENT OR ACTION IN ANY
OTHER FORUM.

Assignor Initials (__________)

Assignee Initials (__________)

      12. In the event that the Assigned Collateral is a recorded mortgage or
security instrument, Assignor hereby acknowledges that this Collateral
Assignment will be recorded in the [identify appropriate real property records]
and agrees to pay any and all recording costs and taxes of whatever type,
including but not limited to documentary stamp and intangible taxes, that may be
payable from time to time with respect to this Collateral Assignment, its
recordation, any amendments to this Collateral Assignment and their recording,
or the other Assigned Collateral, excluding income and profit-based taxes.

      13. If any provision of this Collateral Assignment is held to be illegal,
invalid, or unenforceable under present or future laws effective during the term
hereof, such provision shall be fully severable, this Collateral Assignment
shall be construed and enforced as if such illegal, invalid, or unenforceable
provision had never comprised a part hereof, and the remaining provisions of
this Collateral Assignment shall remain in full force and effect and shall not
be affected by the illegal, invalid, or unenforceable provision or by its
severance therefrom. In any suit, action, or proceeding arising out of or in
connection with this Collateral Assignment, Assignee shall be entitled to
reasonable attorneys' and paralegals' fees and expenses, whether such fees and
expenses arise before such proceedings are commenced or after the entry of a
final judgment and whether suit be brought or not. Any right or remedy granted
herein or in any other Loan Document is separate, distinct, and cumulative and
not exclusive of any other right or remedy granted herein, therein, or provided
by law or in equity; and all of the same may be exercised concurrently,
independently, or successively by Assignee, in its sole discretion. Any
forbearance on the part of Assignee in exercising any right or remedy hereunder
shall not constitute a waiver of or preclude the exercise of such right or
remedy in the future. Assignee shall not be deemed by any act or omission to
have waived any right or remedy or any Default or Event of Default unless such
waiver is in writing and signed by Assignee, and then only to the extent
specifically set forth in such writing.

      14. Assignee may take or release other security for the payment and
performance of the Obligations, may release any party primarily or secondarily
liable therefor, including but not limited to Guarantor, and may apply any other
security held by it to the satisfaction of such Obligations, without prejudice
to any of its rights under this Collateral Assignment. Nothing contained in this
Collateral Assignment and no act done or omitted by Assignee pursuant to the
powers and rights granted to it hereunder shall be deemed to constitute a waiver
by Assignee of its rights and remedies pursuant to this Collateral Assignment or
the other Loan Documents, and this Collateral Assignment is made and accepted
without prejudice to any of the rights and remedies possessed by Assignee
pursuant to the terms, provisions, and conditions hereof and of the other Loan
Documents.

<PAGE>

      IN WITNESS WHEREOF, Assignor has caused this Collateral Assignment to be
duly executed as of the date first written above.

                                    ASSIGNOR:

                                    RESORT FUNDING, INC.

                                    By:  /s/
                                       -----
                                    Its: Lisa M. Henson, Vice President

<PAGE>

STATE OF ___________________  )
                              ) ss:
COUNTY OF _________________   )

      On this _____ day of __________________, 19___, before me personally
appeared _____________________________ who, being by me duly sworn, did say that
he/she is the ____________________ of RESORT FUNDING, INC. and that the
foregoing instrument was signed and delivered on behalf of said corporation by
authority of its board of directors, and he/she acknowledged said instrument to
be the free act and deed of said corporation.

                                  Notary Public

My Commission Expires:

---------------------------

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9

11728.18700.420860-2
                                  EXHIBIT "A"

                      PURCHASED CONSUMER NOTES RECEIVABLE
                        AND ASSIGNED INTERVAL MORTGAGES

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Exhibit 10.23

================================================================================

                                    UP TO $20,700,000

                                CREDIT AGREEMENT

                                      AMONG

                                 EQUIVEST FINANCE, INC.,

                              PEPPERTREE ACQUISITION CORP.,

                             PEPPERTREE ACQUISITION II CORP.

                                       AND

                                  BANK OF AMERICA, N.A.

                             as of November 17, 1999

================================================================================

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                                TABLE OF CONTENTS

                                                                           Page

ARTICLE 1 Definitions........................................................1

      Section 1.1...............................................Defined Terms.1
      Section 1.2.............................................Amendments, Etc.20
      Section 1.3................................................Construction.21

ARTICLE 2 THE TERM LOAN.....................................................21

      Section 2.1...............................................The Term Loan.21
      Section 2.2........................Manner of Borrowing and Disbursement.21
      Section 2.3....................................................Interest.23
      Section 2.4........................................................Fees.24
      Section 2.5.................................................Prepayments.24
      Section 2.6...................................................[Reserved]25
      Section 2.7...................................................[Reserved]25
      Section 2.8................Payment of Principal of Term Note/Extensions.25
      Section 2.9...............................................Reimbursement.25
      Section 2.10..........................................Manner of Payment.26
      Section 2.11......................................LIBOR Lending Offices.26
      Section 2.12..................................................[Reserved]27
      Section 2.13..................................................[Reserved]27
      Section 2.14......................................................Taxes.27

ARTICLE 3 CONDITIONS PRECEDENT..............................................28

      Section 3.1.......................Conditions Precedent to the Term Loan.28
      Section 3.2.Conditions Precedent to All Drawings of the Term Loan,
                  Conversions and Continuations.                  31
      Section 3.3...........Conditions Precedent to the Great Smokies Drawing.32
      Section 3.4........Conditions Precedent to the Deferred Payment Drawing.33

ARTICLE 4 Representations and Warranties....................................33

      Section 4.1..............................Representations and Warranties.33
      Section 4.2.............Survival of Representations and Warranties, etc.46

ARTICLE 5 General Covenants.................................................46

      Section 5.1...............Preservation of Existence and Similar Matters.46
      Section 5.2....................Business; Compliance with Applicable Law.46
      Section 5.3...................................Maintenance of Properties.47
      Section 5.4....................Accounting Methods and Financial Records.47
      Section 5.5...................................................Insurance.47
      Section 5.6.................................Payment of Taxes and Claims.47
      Section 5.7......................................Visits and Inspections.47
      Section 5.8.............................................Use of Proceeds.48
      Section 5.9...................................................INDEMNITY.48
      Section 5.10...............................Environmental Law Compliance.49
      Section 5.11.........................................Further Assurances.50
      Section 5.12................................Management of Projects, Etc.50
      Section 5.13.................................................[Reserved].50
      Section 5.14........................................Owners Associations.50
      Section 5.15................................Note Receivable Information.51
      Section 5.16.................................................[Reserved].51
      Section 5.17..................................................[Reserved]51
      Section 5.18....................Subsidiary Guaranty; Security Agreement.51

ARTICLE 6 Information Covenants.............................................52

      Section 6.1..................................................[Reserved].52
      Section 6.2..................................................[Reserved].52
      Section 6.3..............Quarterly Financial Statements and Information.52
      Section 6.4.Annual Financial Statements and Information;
                  Certificate of No Default.                  52
      Section 6.5......................................Compliance Certificate.53
      Section 6.6.........................Copies of Other Reports and Notices.53
      Section 6.7.............Notice of Litigation, Default and Other Matters.54
      Section 6.8................................ERISA Reporting Requirements.54

ARTICLE 7 Negative Covenants................................................55

      Section 7.1................................................Indebtedness.55
      Section 7.2.......................................................Liens.55
      Section 7.3.................................................Investments.55
      Section 7.4.........................................Liquidation, Merger.56
      Section 7.5.............................................Sales of Assets.56
      Section 7.6................................................Acquisitions.57
      Section 7.7....................................Equivest Note; GSHA Note.57
      Section 7.8...................................................Dividends.57
      Section 7.9......................................Affiliate Transactions.57
      Section 7.10......................................Compliance with ERISA.57
      Section 7.11....................................Interest Coverage Ratio.58
      Section 7.12..................................................Net Worth.58
      Section 7.13...................................................Reserved.58
      Section 7.14................................Total Debt to Total Capital.58
      Section 7.15..........................Average Quarterly Charge-Off Rate.58
      Section 7.16.............................Average Quarterly Default Rate.58
      Section 7.17.........................Average Quarterly Delinquency Rate.58
      Section 7.18.........................................Sale and Leaseback.59
      Section 7.19...................................................Business.59
      Section 7.20................................................Fiscal Year.59
      Section 7.21......................Amendment of Organizational Documents.59
      Section 7.22...................................................Reserved.59
      Section 7.23.......................................Use of Lender's Name.59

ARTICLE 8 Default...........................................................59

      Section 8.1...........................................Events of Default.59
      Section 8.2....................................................Remedies.62

ARTICLE 9 Changes in Circumstances..........................................63

      Section 9.1..........................Inability to Determine LIBOR Basis.63
      Section 9.2..................................................Illegality.63
      Section 9.3.............................................Increased Costs.63
      Section 9.4...........................Effect On Reference Rate Advances.64
      Section 9.5............................................Capital Adequacy.64

ARTICLE 10 Miscellaneous....................................................65

      Section 10.1....................................................Notices.65
      Section 10.2...................................................Expenses.65
      Section 10.3....................................................Waivers.66
      Section 10.4...........Calculation by the Lender Conclusive and Binding.66
      Section 10.5....................................................Set-Off.66
      Section 10.6.................................................Assignment.67
      Section 10.7...............................................Counterparts.67
      Section 10.8...............................................Severability.67
      Section 10.9.......................................Interest and Charges.67
      Section 10.10..................................................Headings.67
      Section 10.11......................................Amendment and Waiver.68
      Section 10.12....................................Exception to Covenants.68
      Section 10.13................................................[Reserved].68
      Section 10.14................................................[Reserved].68
      Section 10.15.............................................GOVERNING LAW.68
      Section 10.16......................................WAIVER OF JURY TRIAL.68
      Section 10.17..........................................ENTIRE AGREEMENT.68

<PAGE>

Schedules and Exhibits

Schedule 1:.LIBOR Lending Office Addresses for Notices
Schedule 2:.Required Consents
Schedule 3:.Existing Litigation and Material Liabilities
Schedule 4:.Subsidiaries and Affiliates
Schedule 5:.Existing Investments
Schedule 6:.Existing Indebtedness:  Secured and Unsecured
Schedule 7:.Qualification and Good Standing
Schedule 8:.Environmental Matters
Schedule 9:.Labor Relations
Schedule 10:      Guarantors
Schedule 11:      Assumed Indebtedness
Schedule 12:      Material Contracts
Schedule 13:      Insurance
Schedule 14:      Licenses, Permits; Etc.
Schedule 15:      Indebtedness to Officers; Etc.
Schedule 16:      Real Property
Schedule 17:      Operating Condition; Etc.

Exhibit A:..Form of Term Note Exhibit B:..Form of Compliance Certificate Exhibit
C:..Form of Subsidiary Guaranty Exhibit D:..Form of Borrowing
Request/Designation Exhibit E:..Form of Security Agreement Exhibit F:..Form of
Pledge Agreement Exhibit G:..Form of Opinion of Counsel

<PAGE>

1

                                CREDIT AGREEMENT

            THIS CREDIT AGREEMENT is dated as of November 17, 1999, among
      EQUIVEST FINANCE, INC., a Delaware corporation (the "Borrower"),
      PEPPERTREE ACQUISITION CORP. ("Newco I"), a Delaware corporation and a
      newly-formed, wholly-owned subsidiary of the Borrower, PEPPERTREE
      ACQUISITION II CORP. ("Newco II"), a Delaware corporation and a
      newly-formed, wholly-owned subsidiary of the Borrower and BANK OF AMERICA,
      N.A., a national banking association (the "Lender").

            PRELIMINARY STATEMENTS

            Pursuant to the terms of the Acquisition Agreement (such term and
      each other capitalized term used but not defined herein having the meaning
      given it in Article I), Newco I and Newco II intend to acquire the
      Transferred Assets (the "Peppertree Acquisition").

            The Borrower desires to obtain certain financial accommodations from
      the Lender and the Lender is willing to extend such credit to the Borrower
      on the terms and subject to the conditions set forth herein. Accordingly,
      the parties hereto agree as follows:

      Definitions

                  Defined Terms.  For purposes of this Agreement.

            "A&D Loans Receivable" means a loan made by the Borrower or its
      Subsidiaries or Affiliates to finance the acquisition and development of
      time-share residential real estate projects.

            "Acquisition" means any transaction pursuant to which the Borrower
      or a Subsidiary or Affiliate of the Borrower, (a) whether by means of a
      capital contribution or purchase or other acquisition of Capital Stock,
      (i) acquires more than 50% of the Capital Stock in any Person pursuant to
      a solicitation by the Borrower or such Subsidiary or Affiliate, or (ii)
      makes any corporation a Subsidiary or Affiliate of the Borrower or such
      Subsidiary or Affiliate, or (iii) causes any corporation to be merged into
      the Borrower or such Subsidiary or Affiliate (other than a merger with
      another Subsidiary or Affiliate of the Borrower), or (b) purchases all or
      substantially all of the business or assets of any Person or of any
      operating division of any Person.

            "Acquisition Agreement" means the Agreement and Plan of
      Reorganization dated as of November 17, 1999, by and among the Borrower,
      Newco I, Newco II, Peppertree, C. Wayne Kinser, Pioneer Hotel Corporation
      and the stockholder named therein.

            "Affiliate" means, as applied to any Person, any other Person that,
      directly or indirectly, through one or more Persons, Controls or is
      Controlled By or Under Common Control with, that Person.

            "Aggregated Notes Receivable" means, collectively, the face amount
      of all Notes Receivable generated by the Borrower and/or any of the
      Subsidiaries or Affiliates of the Borrower whether or not held by the
      Borrower or a Subsidiary or Affiliate of the Borrower, provided that data
      is available to the Borrower or a Subsidiary or Affiliate of the Borrower
      with respect to whether any such Note Receivable (a) has been charged-off,
      (b) any scheduled payment is more than 60 days but no more than 180 days
      past due, or (c) any scheduled payment is more than 180 days past due.

            "Agreement" means this Credit Agreement, as amended, modified,
      supplemented or restated from time to time.

            "Agreement Date" means the date of this Agreement.

            "Applicable Environmental Laws" means applicable laws pertaining to
      health or the environment, including without limitation, the Comprehensive
      Environmental Response, Compensation, and Liability Act of 1980, as
      amended by the Superfund Amendments and Reauthorization Act of 1986 (as
      amended from time to time, "CERCLA"), the Resource Conservation and
      Recovery Act of 1976, as amended by the Used Oil Recycling Act of 1980,
      the Solid Waste Disposal Act amendments of 1980, and the Hazardous and
      Solid Waste Amendments of 1984 (as amended from time to time, "RCRA").

            "Applicable Law" means in respect of any Person, all provisions of
      constitutions, statutes, rules, regulations and orders of governmental
      bodies or regulatory agencies applicable to such Person and its
      properties, including, without limiting the foregoing, all orders and
      decrees of all courts and arbitrators in proceedings or actions to which
      the Person in question is a party.

            "Asset Sale" means the sale, transfer or other disposition by the
      Borrower or any of its Subsidiaries to any Person other than the Borrower
      or any of its Subsidiaries of (a) any Equity of any of its Subsidiaries or
      (b) any other assets of the Borrower or any of its Subsidiaries (other
      than inventory in the ordinary course of business, Securitizations,
      damaged or worn out assets, Cash and Cash Equivalents, or dispositions
      that result in casualty or condemnation proceeds).

            "Authorized Signatory" means such senior personnel of the Borrower
      as may be duly authorized and designated in writing by the Borrower to
      execute documents, agreements and instruments on behalf of the Borrower,
      and to request a borrowing hereunder.

            "Average Quarterly Charge-Off Rate" means the ratio (expressed as a
      percentage), calculated as of the last day of each calendar quarter, of
      (a) the aggregate outstanding principal balance of the Aggregated Notes
      Receivable that have been charged-off during the twelve consecutive
      calendar months ending on the date of calculation (net of any recoveries
      with respect thereto during such period), to (b) the average monthly
      aggregate outstanding principal balance of all of the Aggregated Notes
      Receivable during the twelve consecutive calendar months ending on the
      date of such calculation (determined by averaging the aggregate
      outstanding principal balances of all of the Aggregated Notes Receivable
      as of the beginning and as of the end of each such calendar month during
      such period and then averaging such average monthly aggregate outstanding
      principal balances for the twelve calendar months included in such
      period).

            "Average Quarterly Default Rate" means the ratio (expressed as a
      percentage), calculated as of the last day of each calendar quarter with
      respect to the calendar quarter ending on the date of calculation, of (a)
      the aggregate outstanding principal balance, as of the effective date of
      such calculation, of the Aggregated Notes Receivable with respect to which
      any scheduled payment is more than 180 days past due, to (b) the aggregate
      outstanding principal balance of all of the Aggregated Notes Receivable as
      of the effective date of such calculation.

            "Average Quarterly Delinquency Rate" means the ratio (expressed as a
      percentage), calculated on a quarterly basis as of the last day of each
      calendar quarter with respect to the calendar quarter ending on the date
      of calculation, of (a) the aggregate outstanding principal balance, as of
      the effective date of such calculation, of the Aggregated Notes Receivable
      with respect to which any scheduled payment is more than 60 days past due
      but not more than 180 days past due, to (b) the aggregate outstanding
      principal balance of all of the Aggregated Notes Receivable as of the
      effective date of such calculation.

            "Borrower" has the meaning specified in the caption to this
Agreement.

            "Borrowing Request/Designation" has the meaning specified in Section
      2.2(a) hereof.

            "Business Day" means a day on which commercial banks are open (a)
      for the transaction of business in Los Angeles, California and, (b) with
      respect to any LIBOR Advance, for the transaction of international
      business (including dealings in U.S. dollar deposits) in London, England.

            "Capital Stock" means, as to any Person, the equity interests in
      such Person, including, without limitation, the shares of each class of
      capital stock in any Person that is a corporation, each class of
      partnership interest (including, without limitation, general, limited and
      preference units) in any Person that is a partnership and each class of
      limited liability company interests in any Person that is a limited
      liability company.

            "Capital Expenditures" shall mean, with respect to any Person, all
      expenditures by such Person that should be capitalized in accordance with
      GAAP, including all such expenditures with respect to fixed or capital
      assets (including expenditures for maintenance and repairs that should be
      capitalized in accordance with GAAP) and the amount of Capitalized Lease
      Obligations incurred by such Person.

            "Capitalized Lease Obligations" means that portion of any obligation
      of the Borrower or any Subsidiary or Affiliate of the Borrower as lessee
      under a lease which at the time are recorded as capitalized lease
      obligations on the balance sheet of the Borrower or such Subsidiary or
      Affiliate of the Borrower prepared in accordance with GAAP.

            "Cash and Cash Equivalents" means with respect to the Borrower and
      each Subsidiary and Affiliate of the Borrower (a) cash, (b) securities
      issued or directly and fully guaranteed or insured by the United States
      Government or any agency or instrumentality thereof having maturities of
      not more than six months from the date of acquisition, (c) certificates of
      deposit and Eurodollar time deposits with maturities of six months or less
      from the date of acquisition, bankers' acceptances with maturities not
      exceeding six months from the date of acquisition and overnight bank
      deposits, in each case with the Lender or with any domestic commercial
      bank having capital and surplus in excess of $500,000,000, (d) repurchase
      obligations with a term of not more than seven days for underlying
      securities of the types described in clauses (b) and (c) entered into with
      any financial institution meeting the qualifications specified in clause
      (c) above, (e) commercial paper issued by the Lender or the parent
      corporation of the Lender, and commercial paper rated A-1 or the
      equivalent thereof by Standard & Poor's Ratings Group, a Division of
      McGraw-Hill, Inc., a New York corporation, or P-1 or the equivalent
      thereof by Moody's Investors Service, Inc., and in each case maturing
      within six months after the date of acquisition, and (f) a readily
      redeemable "money market mutual fund" advised by a bank described in
      clause (c) hereof, or an investment advisor registered under Section 203
      of the Investment Advisors Act of 1940, that has and maintains an
      investment policy limiting its investments primarily to instruments of the
      types described in clauses (a) through (e) hereof and having on the date
      of such Investment total assets of at least One Hundred Million Dollars
      ($100,000,000.00).

            "Change of Control" means the occurrence of any of the following
      events after the Agreement Date: (a) any Person or any Persons acting
      together which would constitute a "group" (a "Group") for purposes of
      Section 13(d) of the Securities Exchange Act of 1934, as amended (the
      "Exchange Act"), or any successor provision thereto, other than the Group
      whose nominees constituted a majority of the board of directors of the
      Borrower as of the close of business on the Agreement Date, together with
      any Affiliates or Related Persons thereof, shall beneficially own (as
      defined in Rule 13d-3 of the Securities and Exchange Commission under the
      Exchange Act or any successor provision thereto) at least 30% of the
      aggregate voting power of all classes of Capital Stock of the Borrower
      entitled to vote generally in the election of directors of the Borrower;
      (b) any Person or Group, other than any Person or Group whose nominees
      constituted a majority of the board of directors of the Borrower as of the
      close of business on the Agreement Date, together with any Affiliates or
      Related Persons thereof, shall succeed in having sufficient of its or
      their nominees elected to the Board of Directors of the Borrower, such
      that such nominees, when added to any existing director remaining on the
      Board of Directors of the Borrower after such election who is an Affiliate
      or Related Person of such Group, shall constitute a majority of the Board
      of Directors of the Borrower; or (c) Richard C. Breeden shall cease to be
      either the Chief Executive Officer or the Chief Operating Officer of the
      Borrower and ceases to be involved in the daily operations of the
      Borrower; provided, however, that any Offering by the Estate shall not be
      deemed to be a Change of Control.

            "Code" means the Internal Revenue Code of 1986, as amended.

            "Collateral" means any collateral granted at any time by any Person
      to the Lender to secure the Obligations, including without limitation, the
      following collateral subject to the Pledge Agreement and the Security
      Agreement (a) all outstanding shares of the capital stock of the
      Peppertree Entities, Newco I and Newco II; (b) all general and limited
      partnership interests in Great Smokies (after the making of the Great
      Smokies Drawing) and (c) all "Collateral" as such term is defined in the
      Security Agreement.

            "Collateral Document" means the Pledge Agreement, the Security
      Agreement and any other agreement pursuant to which a lien, pledge or
      security interest in property is granted to the Lender and all documents
      related thereto.

            "Commitment" means an amount equal to (a) 60% of the sum of (i) the
      Purchase Price plus (ii) the Transaction Costs plus (b) the lesser of the
      cash portion of the Deferred Payment and $600,000; provided, however, that
      the Commitment shall not exceed $20,700,000.

            "Commitment Letter" means the letter agreement entered into between
      the Lender and the Borrower setting forth the terms of the Commitment.

            "Compliance Certificate" means a certificate, signed by an
      Authorized Signatory, in substantially the form of Exhibit B,
      appropriately completed.

            "Confidential Memorandum" means the Confidential Memorandum dated
      July 1999 prepared by McDonald Investments.

            "Control" or "Controlled By" or "Under Common Control" means
      possession, directly or indirectly, of power to direct or cause the
      direction of management or policies (whether through ownership of voting
      securities, by contract or otherwise); provided, however, that in any
      event any Person which beneficially owns, directly or indirectly, 10% or
      more (in number of votes) of the securities having ordinary voting power
      for the election of directors of a corporation shall be conclusively
      presumed to control such corporation.

            "Controlled Group" means as of the applicable date, as to any Person
      not an individual, all members of a controlled group of corporations and
      all trades or businesses (whether or not incorporated) which are under
      common control with such Person and which, together with such Person, are
      treated as a single employer under Section 414(b), (c), (m) or (o) of the
      Code.

            "Debtor Relief Laws" means any applicable liquidation,
      conservatorship, bankruptcy, moratorium, rearrangement, insolvency,
      reorganization or similar debtor relief Laws affecting the rights of
      creditors generally from time to time in effect.

            "Default" means any of the events specified in Section 8.1, whether
      or not any requirement for the giving of notice or the lapse of time, or
      both, or any other condition, has been satisfied.

            "Default Rate" means a simple per annum interest rate equal to (a)
      with respect to Reference Rate Advances the lesser of (i) the Highest
      Lawful Rate or (ii) the Reference Rate plus 3.00% or (b) with respect to
      LIBOR Advances, the lesser of (i) the Highest Lawful Rate or (ii) the
      LIBOR Basis plus 3.00%.

            "Deferred Payment" means a payment to be made to Kinser on June 30,
      2000 pursuant to Section 2.04 of the Acquisition Agreement constituting
      the deferred purchase price due to Kinser in connection with the
      Transactions.

            "Deferred Payment Drawing" means a drawing to be made on June 30,
      2000, the proceeds of which are to be used solely to pay a portion of the
      Deferred Payment; provided, however, that the amount of such Drawing shall
      not exceed 100% of the cash portion of the Deferred Payment; provided,
      further, that such amount shall not exceed $600,000.

            "Dividend" means, as to any Person, (a) any declaration or payment
      of any dividend on, or the making of any distribution on account of, any
      shares of Capital Stock of, or other similar interest in, such Person and
      (b) any purchase, redemption, or other acquisition or retirement for value
      of any shares of Capital Stock of, or similar interest in, such Person.

            "Dollar" or "$" means the lawful currency of the United States of
America.

            "EBITDA" means, for any period, determined in accordance with GAAP
      on a consolidated basis for the Borrower and its Subsidiaries and
      Affiliates, the sum of (a) Pretax Net Income (excluding therefrom, to the
      extent included in determining Pretax Net Income, any items of
      extraordinary gain, including net gains on the sale of assets other than
      asset sales in the ordinary course of business, and adding thereto, to the
      extent included in determining Pretax Net Income, any items of
      extraordinary loss, including net losses on the sale of assets; provided,
      however, that, for purposes hereof, gains or losses from the sale of Notes
      Receivable shall not be considered to be extraordinary), plus (b) interest
      expense, plus (c) capitalized interest included in costs of goods sold,
      plus (d) non-recurring charges incurred as a result of business
      combinations utilizing the pooling accounting method to the extent that
      such charges would be permitted to be capitalized utilizing the purchase
      accounting method plus (e) depreciation, amortization and other non-cash
      charges (to the extent included in determining (a) through (d) above).

            "Equity" means Capital Stock or a member interest, or options,
      warrants or any other right to subscribe for or otherwise acquire Capital
      Stock or a member interest, of the Borrower or any Subsidiary or Affiliate
      of the Borrower.

            "Equivest Note" means the promissory note or notes in the aggregate
      amount of up to $4,133,008 made by Borrower to Kinser in connection with
      the Transactions.

            "ERISA" means the Employee Retirement Income Security Act of 1974,
      as amended from time to time, and any regulation promulgated thereunder.

            "ERISA Event" means, with respect to the Borrower and its Controlled
      Group, (a) a Reportable Event (other than a Reportable Event not subject
      to the provision for 30-day notice to the PBGC pursuant to regulations
      issued under Section 4043 of ERISA) with respect to any Plan, (b) the
      withdrawal of any such Person or any member of its Controlled Group from a
      Plan subject to Title IV of ERISA during a plan year in which it was a
      "substantial employer" as defined in Section 4001(a)(2) of ERISA, (c) the
      filing of a notice of intent to terminate under Section 4041(c) of ERISA,
      (d) the institution of proceedings to terminate a Plan by the PBGC, (e)
      the failure to make required contributions that is likely to result in the
      imposition of a lien under Section 412 of the Code or Section 302 of
      ERISA, or (f) any other event or condition which might reasonably be
      expected to constitute grounds under Section 4042 of ERISA for the
      termination of, or the appointment of a trustee to administer, any Plan or
      the imposition of any liability under Title IV of ERISA other than PBGC
      premiums due but not delinquent under Section 4007 of ERISA.

            "Estate" means, collectively, Bennett Funding Group, Inc., Bennett Management
             ------
      and Development Corp., and certain of their Affiliates which have filed petitions
      for bankruptcy with the United States Bankruptcy Court.

            "Eurodollar Reserve Percentage" means, for any day during any
      Interest Period, the reserve percentage (expressed as a decimal, rounded
      upward to the next 1/100th of 1%) in effect on such day, whether or not
      applicable to the Lender, under regulations issued from time to time by
      the Board of Governors of the Federal Reserve System for determining the
      maximum reserve requirement (including any emergency, supplemental or
      other marginal reserve requirement) with respect to Eurocurrency funding
      (currently referred to as "Eurocurrency liabilities"). The LIBOR Base Rate
      for each outstanding LIBOR Advance shall be adjusted automatically as of
      the effective date of any change in the Eurodollar Reserve Percentage.

            "Event of Default" means any of the events specified in Section 8.l,
      provided that any condition set forth therein has been satisfied.

            "Excess Cash Flow" means, for any period of determination for the
      Borrower and its consolidated Subsidiaries, determined in accordance with
      GAAP, the amount by which (a) the sum, without duplication, of (i) EBITDA
      for such period of determination, plus (ii) extraordinary cash receipts of
      the Borrower and its consolidated Subsidiaries, if any, during such period
      of determination and not included in EBITDA (including any amounts
      received by the Borrower or any of its Subsidiaries by way of a purchase
      price adjustment pursuant to the Acquisition Agreement), plus (iii) Net
      Notes Receivable Proceeds for such period plus (iv) Net A&D Loans
      Receivables Proceeds plus (v) Net Cash Proceeds of Asset Sales exceeds (b)
      the sum, without duplication, of (i) the amount of any cash income taxes
      payable by the Borrower and its consolidated Subsidiaries with respect to
      such period of determination, plus (ii) cash interest paid (net of cash
      interest received) by the Borrower and its consolidated Subsidiaries
      during such period of determination, plus (iii) Capital Expenditures made
      in cash during such period of determination, except to the extent financed
      with the proceeds of Indebtedness, casualty or condemnation proceeds, plus
      (iv) repayments of the principal of Indebtedness by the Borrower and its
      consolidated Subsidiaries during such period of determination, whether
      scheduled, optional or mandatory, but only to the extent that such
      repayments by their terms cannot be reborrowed or redrawn and do not occur
      in connection with a refinancing of all or any portion of such
      Indebtedness plus (v) extraordinary cash expenses and cash restructuring
      charges paid by the Borrower and its consolidated Subsidiaries, if any,
      during such period of determination and not included in EBITDA.

            "Extension Fee" means a fee equal to (a) 1.375% in the case of the
      First Extension Period, or (b) 0.875% in the case of the Second Extension
      Period, in each case of the amount of the Term Loan outstanding on the
      effective date of the notice given by the Borrower pursuant to Section 2.8
      hereof.

            "First Extension Period" shall have the meaning assigned thereto in
      Section 2.8(a).

            "GAAP" means generally accepted accounting principles applied on a
      consistent basis, set forth in the Opinions of the Accounting Principles
      Board of the American Institute of Certified Public Accountants, or their
      successors which are applicable in the circumstances as of the date in
      question. The requirement that such principles be applied on a consistent
      basis shall mean that the accounting principles applied in a current
      period are comparable in all material respects to those applied in a
      preceding period.

            "GSHA Note" has the meaning set forth in the Acquisition Agreement.

            "Great Smokies" means Great Smokies Hotel Associates, a North
      Carolina limited partnership.

            "Great Smokies Acquisition" means the acquisition by (a) Newco II of
      100% of the general partnership interest and 99% of the limited
      partnership interest in Great Smokies from Kinser and Pioneer Hotel
      Corporation and (b) the Borrower of a 1% limited partnership interest in
      Great Smokies from Kinser.

            "Great Smokies Drawing" means a drawing made on any date subsequent
      to the Agreement Date, but in no event later than January 31, 2000, the
      proceeds of which are used solely for the Great Smokies Acquisition;
      provided, however, that the amount of such Drawing shall not exceed
      $3,300,000.

            "Guarantor" means each direct and indirect Subsidiary or Affiliate
      of the Borrower which (a) as of the Agreement Date is set forth on
      Schedule 10 attached hereto and (b) after the Agreement Date becomes a
      party to the Subsidiary Guaranty.

            "Guaranty" or "Guaranteed", means (a) as applied to an obligation of
      another Person, (i) a guaranty, direct or indirect, in any manner, of any
      part or all of such obligation, and (ii) an agreement, direct or indirect,
      contingent or otherwise, the practical effect of which is to assure in any
      way the payment or performance (or payment of damages in the event of
      nonperformance) of any part or all of such obligation, including, without
      limiting the foregoing, any reimbursement obligations with respect to
      amounts which may be drawn by beneficiaries of outstanding letters of
      credit and (b) an agreement, direct or indirect, contingent or otherwise,
      to maintain the net worth, working capital, earnings or other financial
      performance of another Person; provided, however, that the term "Guaranty"
      does not include (y) the endorsement of instruments for collection or
      deposit in the ordinary course of business and (z) customary indemnities
      given in connection with asset sales in the ordinary course of business.

            "Hedge Agreements" means any and all agreements, devices or
      arrangements designed to protect at least one of the parties thereto from
      the fluctuations of interest rates, exchange rates or forward rates
      applicable to such party's assets, liabilities or exchange transactions,
      including, but not limited to, dollar-denominated or cross-currency
      interest rate exchange agreements, forward currency exchange agreements,
      interest rate cap, swap or collar protection agreements, and forward rate
      currency or interest rate options, and any and all cancellations, buy
      backs, reversals, terminations or assignments of any of the foregoing.

            "Highest Lawful Amount" means at the particular time in question the
      maximum amount of interest which, under Applicable Law, the Lender is then
      permitted to charge on the Obligations at the Highest Lawful Rate.

            "Highest Lawful Rate" means at the particular time in question the
      maximum rate of interest which, under Applicable Law, the Lender is then
      permitted to charge on the Obligations. If the maximum rate of interest
      which, under Applicable Law, the Lender is permitted to charge on the
      Obligations shall change after the date hereof, the Highest Lawful Rate
      shall be automatically increased or decreased, as the case may be, from
      time to time as of the effective time of each change in the Highest Lawful
      Rate without notice to the Borrower.

            "Indebtedness" means, with respect to any Person, without
      duplication, (a) all obligations for borrowed money, (b) all obligations
      evidenced by bonds, debentures, notes or similar instruments, (c) all
      obligations under conditional sale or other title retention agreements
      relating to property or assets purchased by such Person, (d) all
      obligations issued or assumed as the deferred purchase price of property
      or services (other than trade payables incurred in the ordinary course of
      business), (e) all obligations secured by any Lien on any property or
      asset owned by such Person (other than accounts payable arising in the
      ordinary course of business), (f) the principal portion of all obligations
      of such Person under any synthetic lease, tax retention operating lease,
      off-balance sheet loan or similar off-balance sheet financing product
      where such transaction is considered indebtedness for borrowed money for
      tax purposes but is classified as an Operating Lease in accordance with
      GAAP, (g) to the extent not otherwise included, all Capitalized Lease
      Obligations of such Person, all obligations of any general partnership,
      joint venture or other Person to the extent that such Person is liable,
      whether contractually, as a matter of applicable law or otherwise, for
      such obligations, all obligations in respect of letters of credit,
      bankers' acceptances and similar instruments, all obligations under Hedge
      Agreements, and all obligations in respect of payment, performance and
      similar bonds, (h) any Guaranty of such Person of any obligation or
      another Person constituting obligations of a type set forth above and (i)
      the obligations of the Borrower to pay the 1999 Earnout and the 2000
      Earnout (as such terms are defined in the Acquisition Agreement).

            "Indemnified Matters" has the meaning specified in Section 5.9(a)
hereof.

            "Indemnitees" has the meaning specified in Section 5.9(a) hereof.

            "Initial Term" means the period from the date on which the
      Commitment is made available to the Borrower to the initial Maturity Date.

            "Interest Coverage Ratio" means, on any date of calculation, the
      ratio of EBITDA to Interest Expense, calculated for the four consecutive
      fiscal quarters ending on such date.

            "Interest Differential" means an amount, if any, as of the date of
      any prepayment of a LIBOR Advance by which (a) the amount of interest that
      would have accrued on such LIBOR Advance from the date of prepayment for
      the remainder of the applicable Interest Period exceeds (b) the amount of
      interest that would have accrued on such LIBOR Advance for the period from
      the date of prepayment of such LIBOR Advance to the last day of the
      applicable Interest Period for such LIBOR Advance if the LIBOR Base Rate
      applicable to such LIBOR Advance (the "Applicable Rate") were determined
      two (2) Business Days prior to the date of prepayment of such LIBOR
      Advance. The period commencing on the date of such prepayment and ending
      on the last day of the applicable Interest Period shall be deemed to be
      the "Interest Period" for the determination of such Applicable Rate. The
      calculation of the Interest Differential by the Lender shall be conclusive
      in the absence of manifest or demonstrable error. The following example is
      intended to facilitate the calculation of "Interest Deferential" and is
      not intended to contravene or in any way alter the text of this
      definition.

                  Example:

            If "(a)" is less than "(b)" the Interest Differential will be a
      credit and a prepayment penalty shall not be incurred.

            If "(a)" is greater than "(b)" the Interest Differential shall be
      due to the Lender.

            Where,

                  "(a)" is an amount equal to the product of the prepayment
      portion of the LIBOR Advance and the number of days remaining in the
      applicable Interest Period divided by the LIBOR Basis; and

                  "(b)" is an amount equal to the product of the prepayment
      portion of the LIBOR Advance and the number of days remaining in the
      applicable Interest Period divided by the Applicable Rate determined two
      Business Days prior to the actual payment date.

            "Interest Expense" means, collectively but without duplication, for
      any period, determined in accordance with GAAP on a consolidated basis for
      the Borrower and the Subsidiaries of the Borrower, (a) interest expense,
      as presented on the Borrower's and its Subsidiaries' income statement,
      including accrued but unpaid interest and interest expense pursuant to
      Capitalized Lease Obligations, plus (b) capitalized interest to the extent
      that such capitalized interest reduces interest expense as presented on
      the Borrower's and its Subsidiaries' income statement.

            "Interest Period" means the period beginning on the day any LIBOR
      Advance is made and ending one, two, three or six months thereafter (as
      the Borrower shall select); provided, however, that all of the foregoing
      provisions are subject to the following:

            if any Interest Period would otherwise end on a day which is not a
      Business Day, such Interest Period shall be extended to the next
      succeeding Business Day, unless, with respect to a LIBOR Advance, the
      result of such extension would be to extend such Interest Period into
      another calendar month, in which event such Interest Period shall end on
      the immediately preceding Business Day;

            any Interest Period with respect to a LIBOR Advance that begins on
      the last Business Day of a calendar month (or on a day for which there is
      no numerically corresponding day in the calendar month at the end of such
      Interest Period) shall end on the last Business Day of a calendar month;
      and

            the Borrower may not select any Interest Period which ends after the Maturity
      Date.

            "Investment" means any acquisition of all or substantially all
      assets of any Person, or any direct or indirect purchase or other
      acquisition of, or beneficial interest in, capital stock or other
      securities of any other Person, or any direct or indirect loan, advance
      (other than loans or advances to employees for moving and travel expenses,
      drawing accounts and similar expenditures in the ordinary course of
      business) or capital contribution to, or investment in any other Person,
      including without limitation the purchase of accounts receivable of any
      other Person.

            "Kinser" means C. Wayne Kinser, an individual.
             ------

            "Law" means any statute, law, ordinance, regulation, rule, order,
      writ, injunction, or decree of any Tribunal.

            "LIBOR" means the offered rate for a period of time comparable to
      the number of days in the applicable Interest Period for deposits in
      United States Dollars, as shown on Telerate Page 3750 as of 11:00 a.m.
      London time two (2) Business Days prior to the first day of the applicable
      Interest Period, or if Telerate Page 3750 is unavailable, the rate for
      such deposits determined by the Lender at such time based on such other
      published service of general application as shall be selected by the
      Lender for such purpose. The determination of LIBOR by the Lender shall be
      conclusive in the absence of manifest error. "Telerate Page 3750" means
      the display designated as such on Teleratesystem Incorporated (or such
      other page as may replace page 3750 on that service for the purpose of
      displaying London interbank offered rates of major banks for United States
      Dollar deposits.

            "LIBOR Advance" means the Term Loan or any portion thereof at such
      time as it bears interest at the LIBOR Basis.

            "LIBOR Base Rate" means, for any LIBOR Advance for any Interest
      Period therefor, the rate per annum (rounded upwards, if necessary, to the
      nearest 1/1000 of 1%, if available on Telerate and 1/100 of 1% if not so
      available) determined pursuant to the following formula:

                              LIBOR
                        Base Rate =               LIBOR
                                                  1.00 -
                                            Eurodollar Reserve
                                            Percentage

            "LIBOR Basis" means a simple per annum interest rate equal to the
      lesser of (a) the Highest Lawful Rate and (b) (i) during the Initial Term
      the sum of the LIBOR Base Rate plus 3.00%; (ii) during the First Extension
      Period the sum of the LIBOR Base Rate plus 3.50%; or (iii) during the
      Second Extension Period the sum of the LIBOR Base Rate plus 4.25%.

            "LIBOR Lending Office" means, with respect to the Lender, the office
      designated as its LIBOR Lending Office on Schedule 1 attached hereto, and
      such other office of the Lender or any of its Affiliates hereafter
      designated by notice to the Borrower.

            "Lien" means, with respect to any property, any mortgage, lien,
      pledge, collateral assignment, hypothecation, charge, security interest,
      title retention agreement, levy, execution, seizure, attachment,
      garnishment or other similar encumbrance of any kind in respect of such
      property, whether or not vested or perfected.

            "Litigation" means any proceeding, claim, lawsuit, arbitration,
      and/or investigation by or before any Tribunal, including, without
      limitation, proceedings, claims, lawsuits, and/or investigations under or
      pursuant to any environmental, occupational, safety and health, antitrust,
      unfair competition, securities, Tax or other Law, or under or pursuant to
      any contract, agreement or other instrument.

            "Loan Documents" means this Agreement, the Term Note, the Pledge
      Agreement, the Security Agreement, any other Collateral Document, the
      Subsidiary Guaranty, any Hedge Agreements entered into with the Lender and
      any other document or agreement executed or delivered from time to time by
      the Borrower, any Guarantor or any other Subsidiary or Affiliate of the
      Borrower or any other Person in connection herewith or as security for the
      Obligations.

            "Material Adverse Effect" means any act or circumstance or event
      that (a) could reasonably be expected to be material and adverse to the
      business condition (financial or otherwise), operations, properties,
      business prospects or ability to repay the Obligations in accordance with
      the terms of the Loan Documents of the Borrower and its Subsidiaries and
      Affiliates taken as a whole, or (b) in any manner whatsoever does or could
      reasonably be expected to materially and adversely affect the validity or
      enforceability of any Loan Document.

            "Maturity Date" means (a) initially August 17, 2000 and (b) if any
      extension option is exercised, the related dates set forth in Section 2.8;
      or the earlier date of termination in whole of the Commitment pursuant to
      Section 8.2 hereof.

            "Multiemployer Plan" means, as to any Person, at any time, a
      "multiemployer plan" within the meaning of Section 4001(a)(3) of ERISA and
      to which such Person or any member of its Controlled Group is making, or
      is obligated to make contributions or has made, or been obligated to make,
      contributions within the past five (5) years.

            "Necessary Authorization" means any license, permit, consent,
      approval or authorization from, or any filing or registration with, any
      Tribunal necessary or appropriate to enable the Borrower or any Subsidiary
      or Affiliate of the Borrower to maintain and operate its business and
      properties or to execute, deliver and perform the Loan Documents.

            "Net A&D Loans Receivable Proceeds" means, for any period of
      determination for the Borrower and its consolidated Subsidiaries,
      determined in accordance with GAAP, to the extent not already included in
      EBITDA for such period, the amount by which (a) the sum, without
      duplication, of (i) Net Cash Proceeds from sales of A&D Loans Receivable
      plus (ii) total proceeds received from loans to the Borrower and its
      consolidated Subsidiaries that are secured by A&D Loans Receivable minus
      total repayments made of such loans exceeds (b) net advances made under
      A&D Loans Receivable.

            "Net Cash Proceeds" means, with respect to any sale, lease, transfer
      or other disposition of any asset by any Person (including Capital Stock),
      the amount of cash received by such Person in connection with such
      transaction (including cash proceeds of any property received in
      consideration of any such sale, lease, transfer or other disposition)
      after deducting therefrom the aggregate, without duplication, of the
      following amounts to the extent properly attributable to such transaction
      or to the asset that is the subject thereof: (a) reasonable brokerage
      commissions, legal fees, finder's fees, financial advisory fees,
      accounting fees, underwriting fees, investment banking fees and other
      similar commissions and fees, in each case, to the extent paid or payable
      by such Person; (b) filing, recording or registration fees or charges or
      similar fees or charges paid by such Person; (c) taxes paid or payable by
      such Person or any shareholder, partner or member of such Person to
      governmental taxing authorities as a result of such sale or other
      disposition; and (d) payment of the outstanding principal amount of,
      premium or penalty, if any, and interest on any Indebtedness that is
      secured by a Lien on the asset in question and that is required to be
      repaid under the terms thereof as a result of such asset sale.

            "Net Exposure Under Securitization" means, for any date of
      calculation, the sum of (a) any and all obligations and liabilities of the
      Borrower or any Subsidiary or Affiliate of the Borrower under, or in
      connection with, any Securitization, as of such date of calculation, to
      the extent that same constitute recourse liabilities of the Borrower or of
      such Subsidiary or Affiliate and (b) the fair market value of any and all
      property of the Borrower or of any Subsidiary or Affiliate of the Borrower
      that is pledged or encumbered, or as to which the interest(s) of the
      Borrower or any such Subsidiary or Affiliate are subordinated or otherwise
      impaired, as security for or as a credit enhancement or otherwise in
      connection with, any Securitization.

            "Net Income" means, with respect to any Person for any period, the
      net income (loss) (including any net income from the sale or
      Securitization of any Notes Receivable) of such Person, after provisions
      for taxes and extraordinary items, determined in accordance with GAAP.

             "Net Notes Receivable Proceeds" means, for any period of
      determination for the Borrower and its consolidated Subsidiaries,
      determined in accordance with GAAP, to the extent not already included in
      EBITDA for such period, the amount by which (a) the sum, without
      duplication, of (i) Net Cash Proceeds from sales of Notes Receivable and
      (ii) total proceeds received from loans to the Borrower and its
      consolidated Subsidiaries that are secured either (A) by Notes Receivable
      owned by the Borrower and its consolidated Subsidiaries minus total
      repayments made of such loans or (B) by Notes Receivable Loans, exceeds
      (b) the sum, without duplication, of (i) payments made by the Borrower and
      its consolidated Subsidiaries to purchase Notes Receivable and (ii) net
      advances made under Notes Receivable Loans.

            "Net Worth" means, as of any date of calculation, for the Borrower
      and its Subsidiaries, on a consolidated basis, determined in accordance
      with GAAP, the consolidated total stockholders' equity of the Borrower and
      its Subsidiaries.

            "New Material Affiliate" means any Affiliate of the Borrower formed
      or acquired by the Borrower at any time subsequent to the Agreement Date,
      having equity in excess of $2,500,000, including, without limitation,
      Great Smokies, but not including any Affiliate that is a special-purpose
      bankruptcy remote corporation formed exclusively to operate as a conduit
      in Securitizations.

            "New Material Subsidiary" means any Subsidiary of the Borrower
      formed or acquired by the Borrower at any time subsequent to the Agreement
      Date, having equity in excess of $2,500,000, including, without
      limitation, Great Smokies, but not including any Subsidiary that is a
      special-purpose bankruptcy remote corporation formed exclusively to
      operate as a conduit in Securitizations .

            "Newco I" means Peppertree Acquisition Corp., a Delaware corporation and a
             -------
      wholly-owned subsidiary of the Borrower.

            "Newco II" means Peppertree Acquisition II Corp., a Delaware corporation and
             --------
      a wholly-owned subsidiary of the Borrower.

            "Note Receivable" means the interest of the Borrower or a Subsidiary
      or Affiliate of the Borrower in a promissory note, or other written
      agreement arising out of the sale and purchase of a Time-Share Interest
      and containing a legally binding obligation on the part of a Purchaser to
      pay a sum certain, executed and delivered by a Purchaser and as to which
      there exist no unsatisfied conditions precedent to the validity and
      enforceability thereof under the terms of the applicable Purchase
      Documents, at law or otherwise.

            "Notes Receivable Loans" means loans made by the Borrower or any of
      its consolidated Subsidiaries to borrowers that are not Affiliates of the
      Borrower and that are secured by the borrower's interest in promissory
      notes or other written agreements evidencing indebtedness arising out of
      the sale and purchase of the right to utilize residential units in
      time-share residential real estate projects.

            "Obligations" means (a) all obligations of any nature (whether
      matured or unmatured, fixed or contingent) of the Borrower or any other
      Obligor to the Lender under any of the Loan Documents and (b) all
      obligations of the Borrower or any other Obligor for losses, damages,
      expenses or any other liabilities of any kind that the Lender may suffer
      by reason of a breach by the Borrower or any other Obligor of any
      obligation, covenant or undertaking with respect to any Loan Document
      payable by the Borrower or any other Obligor under any Loan Document.

            "Obligor" means the Borrower and each Guarantor.

            "Offering" means any transaction to raise capital through the
      private placement or public issuance of debt or equity securities of the
      Borrower or any of its Subsidiaries or Affiliates.

            "Operating Lease" means any operating lease, as defined in the
      Financial Accounting Standard Board Statement of Financial Accounting
      Standards No. 13, dated November, 1976 or otherwise in accordance with
      GAAP, of the Borrower and/or any of its Subsidiaries and Affiliates.

            "Payment Date" means the first Business Day of each calendar month.

            "Partnership Interests" means all the general and limited
      partnership interests in Great Smokies.

            "PBGC" means the Pension Benefit Guaranty Corporation or any entity
      succeeding to any or all of its functions under ERISA.

            "Peppertree" means Peppertree Resorts, Ltd., a North Carolina corporation.
             ----------

            "Peppertree Acquisition" has the meaning specified in the
      Preliminary Statements hereto.

            "Peppertree Entities" means Peppertree, Great Smokies (in the event
      of the Great Smokies Drawing), PRVI and each other Subsidiary of
      Peppertree, collectively.

            "Peppertree Interests" means the Pledged Stock and the Partnership Interests.
             --------------------

            "Person" means an individual, corporation, partnership, trust or
      unincorporated organization, or a government or any agency or political
      subdivision thereof.

            "Permitted Equity Offering" means one private placement of equity
      securities of the Borrower or any of its Subsidiaries or Affiliates
      effected during the first six months following the Agreement Date.

            "Permitted Liens" means, as applied to any Person:

            Any Lien in favor of the Lender;

            (i) Liens on real estate for ad valorem taxes not yet delinquent,
      and (ii) Liens for taxes, assessments, governmental charges, levies,
      homeowners' association dues or other claims that are not yet delinquent
      or that are being diligently contested in good faith by appropriate
      proceedings in accordance with Section 5.6 hereof and for which adequate
      reserves shall have been set aside on such Person's books, but only so
      long as no foreclosure, restraint, sale or similar proceedings have been
      commenced with respect thereto;

            Liens of carriers, landlords, warehousemen, mechanics, laborers and
      materialmen incurred in the ordinary course of business for sums not yet
      due or being contested in good faith, if adequate reserves or other
      appropriate provision, if any, as shall be required by GAAP shall have
      been made therefor;

            Liens incurred in the ordinary course of business in connection with
      worker's compensation, unemployment insurance or similar legislation;

            Easements, right-of-way, restrictions and other similar encumbrances
      on the use of real property which do not interfere in any material respect
      with the ordinary conduct of the business of such Person;

            Liens in respect of judgments or awards for which appeals or
      proceedings for review are being prosecuted and in respect of which a stay
      of execution upon any such appeal or proceeding for review shall have been
      secured, provided that (i) such Person shall have established adequate
      reserves for such judgments or awards, (ii) such judgments or awards shall
      be fully insured (subject to customary deductibles) and the insurer shall
      not have denied coverage, or (iii) such judgments or awards shall have
      been bonded to the satisfaction of the Lender;

            Any Liens which secure Indebtedness that is permitted by Section 7.1 hereof;
                                                                     -----------

            Liens arising from filing Uniform Commercial Code financing
      statements for precautionary purposes relating solely to true leases of
      personal property permitted by this Agreement under which the Borrower or
      any of its Subsidiaries or Affiliates is a lessee;

            Any zoning or similar law or right reserved to or vested in any Tribunal to
      control or regulate the use of any real property;

            Any Lien in favor of the Lender to secure any obligations owed to the Lender
      in respect of any Hedge Agreement; and

            Liens incurred or deposits made to secure the performance of bids,
      trade contracts (other than for Indebtedness) statutory obligations,
      surety and appeal bonds, performance bonds and other obligations of a like
      nature incurred in the ordinary course of business.

            "Plan" means an employee benefit plan as defined in Section 3(3) of
      ERISA (including a Multiemployer Plan) pursuant to which any employees of
      the Borrower or any member of its Controlled Group participate.

            "Pledge Agreement" means, the Pledge Agreement, dated as of the date
      hereof, substantially in the form of Exhibit F hereto, made by the
      Borrower, Peppertree and Newco II for the benefit of the Lender.

            "Pledged Stock" means all of the issued and outstanding shares of
      Capital Stock of Newco II, Peppertree, Great Smokies (in the event of the
      Great Smokies Drawing), PRVI and each of their respective Subsidiaries.

            "Pretax Net Income" means net profit (or loss) before taxes of the
      Borrower and the Subsidiaries and Affiliates of the Borrower, on a
      consolidated basis, determined in accordance with GAAP.

            "PRVI" means Peppertree Resorts Villas, Inc., a North Carolina corporation.
             ----

            "Projects" means time-share residential real estate projects in
      which the Borrower or any of its Subsidiaries or Affiliates sells
      Time-Share Interests.

            "Purchase Documents" means any purchase agreement, lease and related
      sale and escrow documents executed and delivered by a Purchaser to the
      Borrower or any of its Subsidiaries or Affiliates with respect to the
      purchase of a Time-Share Interest.

            "Purchase Price" means an amount not to exceed $31,000,000 payable
      to Kinser in cash and stock pursuant to the Acquisition Agreement, of
      which no more than $17,000,000 shall be payable in cash.

            "Purchaser" means a Person who purchases a Time-Share Interest in a
      Project from the Borrower or any of its Subsidiaries or Affiliates or any
      other obligor in respect of the Note Receivable executed in connection
      therewith.

            "Reference Rate" means, for any day, a per annum interest rate equal
      to the sum of (a)(i) 0.50%, (ii) 1.00% or (iii) 1.75% during the Initial
      Term, the First Extension Period or the Second Extension Period,
      respectively, plus (b) the prime rate of the Lender, which rate is the
      floating rate of interest most recently announced by the Lender at its
      principal office in Charlotte, North Carolina as its "prime rate",
      provided that any change in the prime rate announced by the Lender shall
      take effect at the opening of business on the day specified in the public
      announcement of such change.

            "Reference Rate Advance" means any the Term Loan or any portion
      thereof at such time as it bears interest at the Reference Rate.

            "Related Person" means (a) any Affiliate of the Borrower, (b) any
      individual or entity who directly or indirectly holds 10% or more of any
      class of Capital Stock of the Borrower, (c) any relative of such
      individual by blood, marriage or adoption not more remote than first
      cousin and (d) any officer or director of the Borrower.

            "Release Date" means the date on which the Notes have been paid, all
      other Obligations due and owing have been paid and performed in full, and
      the Commitment has been terminated.

            "Reportable Event" has the meaning set forth in Section 4043(b) of
ERISA.

            "Rights" means rights, remedies, powers and privileges.

            "Second Extension Period" shall have the meaning assigned thereto in
      Section 2.8(b).

            "Security Agreement" means a Security Agreement, substantially in
      the form of Exhibit E hereto, made by the Borrower and each Guarantor for
      the benefit of the Lender.

            "Securitization" means a sale or hypothecation of Notes Receivable
      or A&D Loans Receivable by the Borrower or any Subsidiary or Affiliate of
      the Borrower.

            "Securitization Subsidiary" means any Subsidiary of the Borrower
      which is organized for the sole purpose of facilitating a Securitization
      and which performs no business and has no other assets outside of those
      necessary to consummate a Securitization.

            "Solvent" means, with respect to any Person, that the fair value of
      the assets of such Person (both at fair valuation and at present fair
      saleable value) is, on the date of determination, greater than the total
      amount of liabilities (including contingent and unliquidated liabilities)
      of such Person as of such date and that, as of such date, such Person is
      able to pay all liabilities of such Person as such liabilities mature and
      such Person does not have unreasonably small capital with which to carry
      on its business. In computing the amount of contingent or unliquidated
      liabilities at any time, such liabilities will be computed at the amount
      which, in light of all the facts and circumstances existing at such time,
      represents the amount that can reasonably be expected to become an actual
      or matured liability discounted to present value at rates believed to be
      reasonable by such Person.

            "Special Counsel" means the law firm of Dechert Price & Rhoads, or
      such other legal counsel as the Lender may select.

            "Subsidiary" of any Person means any corporation, partnership, joint
      venture, trust or estate or other Person of which (or in which) more than
      50% of:

            the outstanding capital stock having voting power to elect a
      majority of the Board of Directors of such corporation (irrespective of
      whether at the time capital stock of any other class or classes of such
      corporation shall or might have voting power upon the occurrence of any
      contingency),

            the interest in the capital or profits of such partnership or joint venture,

            the beneficial interest of such trust or estate, or

            the equity interest of such other Person,

            is at the time directly or indirectly owned by such Person, by such
      Person and one or more of its Subsidiaries or by one or more of such
      Person's Subsidiaries; provided, however, that (i) no Person shall be
      deemed to be a Subsidiary of the Borrower solely by virtue of the fact
      that certain shares of the stock of such Person have been pledged to the
      Borrower and (ii) the Securitization Subsidiary shall not be deemed to be
      a Subsidiary for purposes of this Agreement.

            "Subsidiary Guaranty" means a guaranty, substantially in the form of
      Exhibit C hereto, executed and delivered by each Guarantor for the benefit
      of the Lender.

            "Taxes" has the meaning specified in Section 2.14 hereof.

            "Term Loan" has the meaning specified in Section 2.1 hereof.

            "Term Note" means a promissory note, substantially in the form of
      Exhibit A hereto evidencing the obligation of the Borrower to repay the
      Term Loan (together with any extensions, renewals or amendments thereof or
      thereto, and any substitutions therefor).

            "Time-Share Interest" means the property, rights and interests
      acquired by a Purchaser which entitles such Purchaser either (a) to
      utilize a specific Unit, or a type or class of Unit, for a specified
      period of time on a recurring basis or (b) in the case of a "points-based"
      system, to utilize a variety of different Units and different periods of
      time on a non-recurring basis.

            "Total Capital" means, as of any date of determination, the sum of
      (a) Total Debt plus (b) Net Worth.

            "Total Debt" means, as of any date of determination, determined for
      the Borrower and its Subsidiaries on a consolidated basis in accordance
      with GAAP, without duplication, (i) indebtedness for borrowed money, (ii)
      obligations evidenced by bonds, debentures, notes or other similar
      instruments, (iii) obligations to pay the deferred purchase price of
      property or services other than trade payables incurred in the ordinary
      course of business, (iv) obligations in respect of letters of credit,
      banker's acceptances and similar instruments, (v) obligations under Hedge
      Agreements, (vi) Capitalized Lease Obligations, (vii) obligations in
      respect of payment, performance and similar bonds, (viii) Net Exposure
      Under Securitization and (ix) other contingent obligations.

            "Total Debt to Total Capital Ratio" means the ratio of Total Debt to
      Total Capital, calculated at the end of each fiscal quarter.

            "Transaction Costs" means legal, accounting, consulting and other
      fees and expenses actually incurred by the Borrower and its Subsidiaries
      and Affiliates directly related to the Transactions (including, without
      limitation, fees and expenses payable to Banc of America Securities LLC
      and to the Lender), not to exceed $2,500,000.

            "Transactions Costs Drawing" shall mean a drawing made on any date
      subsequent to the Agreement Date, but in no event later than January 31,
      2000, the proceeds of which are used solely for Transaction Costs, the
      amount of which shall not exceed 60% of the Transaction Costs (excluding
      Transaction Costs paid with the proceeds of the initial drawing hereunder)
      set forth in a schedule delivered in connection with such Drawing.

            "Transaction Documents" shall mean the Acquisition Agreement and all
      other documents entered into or delivered in connection with the
      Acquisition Agreement.

            "Transactions" shall mean, collectively, the transactions to occur
      on or prior to the Agreement Date pursuant to the Loan Documents and the
      Transaction Documents, including (a) the consummation of the Peppertree
      Acquisition, (b) the execution and delivery of the Loan Documents and the
      initial borrowing hereunder and (c) the payment of all fees and expenses
      to be paid on or prior to the Agreement Date and owing in connection with
      the foregoing.

            "Transferred Assets" means the Acquired Business (as such term is
      defined in the Acquisition Agreement).

            "Tribunal" means any state, commonwealth, federal, foreign,
      territorial, or other court or government body, subdivision, agency,
      department, commission, board, bureau, or instrumentality of a
      governmental or other regulatory or public body or authority.

            "Unit" means a residential unit in a Project as shown on the
      recorded condominium plat therefor or other evidence thereof, as required
      or permitted under applicable Law.

            "United States" means the United States of America.
             -------------

                  Amendments, Etc.

                  Each definition of an agreement in this Article 1 shall
      include such agreement as amended, modified, supplemented or restated to
      date, and as amended, modified, supplemented or restated from time to time
      in accordance with its terms, but only with the prior written consent of
      the Lender as required pursuant to Section 10.11 hereof.

                  Construction. The terms defined in this Article 1 (except as
      otherwise expressly provided in this Agreement) for all purposes shall
      have the meanings set forth in Section 1.1 hereof, and the singular shall
      include the plural, and vice versa, unless otherwise specifically required
      by the context. All accounting terms used in this Agreement which are not
      otherwise defined herein shall be construed in accordance with GAAP on a
      consolidated basis for the Borrower and its Subsidiaries, unless otherwise
      expressly stated herein.

      THE TERM LOAN

                  The Term Loan.

                  Commitment. Subject to the terms and conditions and relying
      upon the representations and warranties herein set forth, the Lender
      agrees to make a term loan (the "Term Loan") to the Borrower in a
      principal amount not to exceed the Commitment which shall be available in
      up to four drawings, the first of which shall occur on the Agreement Date,
      and the remainder of which shall consist of the Transaction Costs Drawing,
      the Great Smokies Drawing and the Deferred Payment Drawing, provided that
      the Great Smokies Drawing and the Transaction Costs Drawing may be
      combined. Amounts paid or prepaid on the Term Loan prior to the Maturity
      Date may not be reborrowed. The Term Loan or any portion thereof shall, at
      the option of the Borrower as provided in Section 2.2 hereof (and, in the
      case of LIBOR Advances, subject to the provisions of Article 9 hereof), be
      made as one or more Reference Rate Advances and/or LIBOR Advances.

                  Manner of Borrowing and Disbursement.

                  In the case of Reference Rate Advances, the Borrower, through
      an Authorized Signatory, shall give the Lender at least one Business Day's
      irrevocable written notice, in substantially the form of Exhibit D hereto
      (a "Borrowing Request/Designation") of its intention to borrow a Reference
      Rate Advance hereunder. Notice shall be given to the Lender prior to 9:00
      a.m., Los Angeles, California time, in order for such Business Day to
      count toward the minimum number of Business Days required. Such Borrowing
      Request/Designation shall specify the requested funding date, which shall
      be a Business Day, and the amount of the Reference Rate Advance to be made
      by the Lender.

                  In the case of LIBOR Advances, the Borrower, through an
      Authorized Signatory, shall give the Lender at least three Business Days'
      irrevocable written notice pursuant to a Borrowing Request/Designation, of
      its intention to borrow LIBOR Advances hereunder. Notice shall be given to
      the Lender prior to 9:00 a.m., Los Angeles, California time, in order for
      such Business Day to count toward the minimum number of Business Days
      required. LIBOR Advances shall in all cases be subject to Article 9
      hereof. For LIBOR Advances, the Borrowing Request/Designation shall
      specify the requested funding date, which shall be a Business Day, the
      amount of each proposed LIBOR Advance to be made by the Lender and the
      Interest Period selected by the Borrower for each such LIBOR Advance.
      Prior to 9:30 a.m., Los Angeles, California time, two Business Days' prior
      to the date of the requested LIBOR Advances, the Lender shall determine
      the LIBOR Basis with respect to each such requested LIBOR Advance (which
      determination shall be conclusive in the absence of manifest error), and
      the Lender shall promptly give notice of same to the Borrower by telephone
      (confirmed in writing), telecopier or telex.

                  Subject to Sections 2.1 and 2.9 hereof, the Borrower shall
      have the option (i) to convert at any time all or any part (subject to the
      requirements contained herein as to the minimum amounts of LIBOR Advances)
      of the outstanding Reference Rate Advances to LIBOR Advances and all or
      any part of the outstanding LIBOR Advances to Reference Rate Advances or
      (ii) upon expiration of any Interest Period applicable to a LIBOR Advance,
      to continue all or any portion of such LIBOR Advance as a LIBOR Advance
      and the succeeding Interest Period of each such continued LIBOR Advance
      shall commence on the last day of the Interest Period of such LIBOR
      Advance to be continued; provided, however, that (A) LIBOR Advances may
      only be converted into Reference Rate Advances on the last day of the
      Interest Period applicable thereto and (B) notwithstanding anything in
      this Agreement to the contrary, no portion of the Term Loan may be
      continued as, or converted into, a LIBOR Advance when any Default or Event
      of Default has occurred and is continuing. At least three Business Days
      prior to a proposed conversion/continuation date, the Borrower, through an
      Authorized Signatory, shall give the Lender irrevocable written notice
      stating (i) the proposed conversion/continuation date (which shall be a
      Business Day), (ii) the amount of the Term Loan to be converted/continued,
      (iii) in the case of a conversion to, or a continuation of, a LIBOR
      Advance, the requested Interest Period, and (iv) in the case of a
      conversion of a Reference Rate Advance to a LIBOR Advance or continuation
      of a LIBOR Advance, stating that no Default or Event of Default has
      occurred and is continuing. If the Borrower shall fail to give any notice
      in accordance with this Section 2.2(c), the Borrower shall be deemed
      irrevocably to have requested that such LIBOR Advance be converted to a
      Reference Rate Advance in the same principal amount. Notice shall be given
      to the Lender prior to 9:00 a.m., Los Angeles, California time, in order
      for such Business Day to count toward the minimum number of Business Days
      required. Prior to 9:30 a.m., Los Angeles, California time, two Business
      Days' prior to the date of the requested conversion/continuation of a
      LIBOR Advance, the Lender shall determine the LIBOR Basis with respect to
      such requested conversion/continuation of such LIBOR Advance (which
      determination shall be conclusive in the absence of manifest error), and
      the Lender shall promptly give notice of same to the Borrower by telephone
      (confirmed in writing), telecopier or telex.

                  Each drawing under the Term Loan, if such drawing is to be
      made as a Reference Rate Advance, shall be in a principal amount of at
      least $250,000 and integral multiples of $100,000 in excess of that
      amount, unless the remaining amount of the Commitment is less than such
      minimums. Each drawing under the Term Loan, if such drawing is to be made
      as one or more LIBOR Advances, shall be in a principal amount of at least
      $1,000,000 and integral multiples of $100,000 in excess of that amount,
      unless the remaining amount of the Commitment is less than such minimums.
      No more than three different Interest Periods for LIBOR Advances shall be
      outstanding at any one time. The limits sets forth in this clause shall
      also govern conversions and continuations.

                  The Lender shall, subject to satisfaction of the conditions
      set forth in Article 3, disburse the amounts of the Term Loan by (i)
      transferring such amounts by wire transfer pursuant to the Borrower's
      instructions, or (ii) in the absence of such instructions, crediting such
      amounts to the account of the Borrower maintained with the Lender.

                  Interest.

                  On Reference Rate Advances.
                  --------------------------

                  The Borrower shall pay interest on the unpaid principal amount
      of the Reference Rate Advances outstanding from time to time, until such
      Reference Rate Advances are due (whether at the Maturity Date, by reason
      of acceleration or otherwise) and repaid at a simple interest rate per
      annum equal to the Reference Rate for the Reference Rate Advances as in
      effect from time to time. If at any time the Reference Rate would exceed
      the Highest Lawful Rate, interest payable on the Reference Rate Advances
      shall be limited to the Highest Lawful Rate, but the Reference Rate shall
      not thereafter be reduced below the Highest Lawful Rate until the total
      amount of interest accrued on the Reference Rate Advances equals the
      amount of interest that would have accrued if the Reference Rate had been
      in effect at all times.

                  Interest on the Reference Rate Advances shall be computed on
      the basis of a 360-day year for the actual number of days elapsed, and
      shall be payable monthly in arrears on each Payment Date and on the
      Maturity Date.

                  On LIBOR Advances.
                  -----------------

                  The Borrower shall pay interest on the unpaid principal amount
      of each LIBOR Advance, from the date such Advance is made until it is due
      (whether at maturity, by reason of acceleration, by scheduled reduction,
      or otherwise) and repaid, at a rate per annum equal to the LIBOR Basis for
      such LIBOR Advance. The Lender, whose determination shall be controlling
      in the absence of manifest error, shall determine the LIBOR Basis on the
      second Business Day prior to the applicable funding date and shall notify
      the Borrower of such LIBOR Basis.

                  Subject to Section 10.9 hereof, interest on each LIBOR Advance
      shall be computed on the basis of a 360-day year for the actual number of
      days elapsed, and shall be payable in arrears on each Payment Date and on
      the Maturity Date.

                  Interest After an Event of Default. After an Event of Default
      and during any continuance thereof, the Obligations shall bear interest at
      a rate per annum equal to the Default Rate. Such interest shall be payable
      on the earlier of demand or the Maturity Date, and shall accrue until the
      earlier of (i) waiver of such Event of Default, or (ii) payment in full of
      the Obligations. The Lender shall not be required to accelerate the
      maturity of the Term Note, to exercise any other rights or remedies under
      the Loan Documents, or to give notice to the Borrower of the decision to
      charge interest at the Default Rate.

                  Interest After an Offering. In the event during the Initial
      Term, the Borrower or any of its Subsidiaries or Affiliates engages in any
      Offering other than the Permitted Equity Offering, and the Net Cash
      Proceeds resulting from such Offering are insufficient to repay the
      outstanding Term Note in full, the Term Loan shall bear interest at a rate
      per annum equal to the rates applicable during the Second Extension
      Period.

                  Fees. The Borrower agrees to pay to the Lender, on the
      Agreement Date (a) a commitment fee equal to 0.75% of the full amount of
      the Commitment whether or not drawn, (b) a funding fee equal to 0.75% of
      $17,400,000, and (c) the fees set forth in a fee letter dated as of the
      date hereof between the Borrower and the Lender. The Borrower agrees to
      pay a funding fee equal to 0.75% of $3,300,000 on the date on which the
      Great Smokies Drawing occurs.

                  Prepayments.

                  Voluntary Prepayments. Subject to Section 2.4, upon three
      Business Days' prior written notice by an Authorized Signatory to the
      Lender, the Borrower may prepay the Term Loan in whole or in part, but
      only so long as the Borrower concurrently reimburses the Lender in
      accordance with Section 2.4(c) and 2.9 hereof. Any notice of prepayment
      shall be irrevocable.

                  Mandatory Prepayments.
                  ---------------------

                  On or before the effective date of any merger, consolidation
      or sale of all or substantially all of the Borrower's assets or any
      acquisition of the Borrower by any other means, the Borrower shall prepay
      the Term Note in full.

                  On the date of any (A) Asset Sale the Net Cash Proceeds of
      which exceed $250,000 (provided that the aggregate amount excluded shall
      not exceed $1,000,000) or (B) Offering, the Borrower shall prepay the Term
      Note in an amount equal to the Net Cash Proceeds of (A) or (B) above. The
      Borrower shall first prepay all Reference Rate Advances and shall
      thereafter prepay LIBOR Advances.

                  On the earlier of (A) September 30, 2000 and provided the
      First Extension Period shall have been exercised pursuant to Section 2.8
      hereof, and (B) the last day of the calendar month in which an Offering is
      effected (other than the Permitted Equity Offering), if Net Cash Proceeds
      of such Offering are less than the amount needed to prepay the Term Note
      in full, the Borrower shall, on each Payment Date thereafter, apply an
      amount equal to 80% of Excess Cash Flow for the preceding calendar month
      to the prepayment of the Term Note, provided, however, in the event the
      Borrower has prepaid the Net Cash Proceeds of any Asset Sale pursuant to
      Section 2.5(b)(ii) above, such Net Cash Proceeds shall be excluded from
      the definition of Excess Cash Flow.

                  Payments, Generally. Any prepayment of any LIBOR Advance shall
      be accompanied by interest accrued on the principal amount being prepaid.
      Any voluntary partial payment of a Reference Rate Advance shall be in a
      principal amount which is at least $250,000 and integral multiples of
      $100,000 in excess thereof (unless constituting a payment of all
      outstanding Reference Rate Advances). Any voluntary partial payment of a
      LIBOR Advance shall be in a principal amount which is at least $1,000,000
      and integral multiples of $100,000 in excess thereof (unless constituting
      a payment of all outstanding LIBOR Advances). The Borrower shall reimburse
      the Lender in connection with any such payment in accordance with Section
      2.9 hereof to the extent applicable.

                  [Reserved]

                  [Reserved]

                  Payment of Principal of Term Note/Extensions.

                  To the extent not otherwise required to be paid earlier as
      provided herein, the principal amount of the Term Note, all accrued
      interest and fees thereon, and all other Obligations related thereto,
      shall be due and payable in full on the Maturity Date, unless at least 30
      days (but no more than 60 days) prior to such date, the Borrower shall
      have delivered to the Lender:

                  a written notice stating that the Borrower desires to extend
      the Maturity Date until February 17, 2001, and certifying to the effect
      that no Default or Event of Default exists under any of the Loan
      Documents, and

                  payment of the Extension Fee on the date notice is given, in
      which case the Term Note shall, subject to written notice that such
      certification is true and correct on the current Maturity Date, and unless
      further extended, mature on February 17, 2001 (the "First Extension
      Period").

                  If the Maturity Date of the Term Note shall have been extended
      for the First Extension Period, pursuant to Section 2.8(a) hereof, the
      unpaid principal balance of the Term Note shall mature on such date,
      unless 30 days (but no more than 60 days) prior to such date, the Borrower
      shall have delivered to the Lender:

                  a written notice stating that the Borrower desires to extend
      the Maturity Date of the Term Note until May 17, 2001, and certifying to
      the effect that no Default or Event of Default exists under any of the
      Loan Documents, and

                  payment of the Extension Fee on the date notice is given, in
      which case the Term Note shall, subject to written notice that such
      certification is true and correct on the current Maturity Date, mature on
      May 17, 2001 (the "Second Extension Period").

                  Reimbursement. Whenever the Lender shall sustain or incur any
      amount of Interest Differential, related charges imposed by one department
      of the Lender on another department of the Lender ("intra-Lender charges")
      or reasonable out-of-pocket expenses actually incurred in connection with
      (a) failure by the Borrower to borrow (including any failure to continue
      or convert into) any LIBOR Advance after having given notice of its
      intention to borrow (or to continue or convert) in accordance with Section
      2.2 hereof (whether by reason of the Borrower's election not to proceed or
      the non-fulfillment of any of the conditions set forth in Article 3
      hereof) or (b) any prepayment for any reason of any LIBOR Advance in whole
      or in part (including a prepayment pursuant to Section 9.3(b) hereof) on
      other than the last day of an Interest Period applicable to such LIBOR
      Advance, the Borrower agrees to pay to the Lender, within five Business
      Days after demand by the Lender, an amount sufficient to compensate the
      Lender for all such Interest Differential and out-of-pocket expenses,
      subject to Section 10.9 hereof. Such expenses shall include, without
      limiting the generality of the foregoing, intra-Lender charges and
      reasonable out-of-pocket expenses incurred by the Lender in connection
      with the re-employment of funds prepaid, repaid, converted or not
      borrowed, converted or paid, as the case may be. A certificate as to any
      amounts payable to the Lender under this Section 2.9 submitted to the
      Borrower by the Lender shall be conclusive absent manifest or demonstrable
      error.

                  Manner of Payment.

                  Each payment (including prepayments) by the Borrower of the
      principal of or interest on the Term Note, fees, and any other amount owed
      under this Agreement or any other Loan Document shall be made not later
      than 1:00 p.m., Los Angeles, California time, on the date specified for
      payment under this Agreement to the Lender at the Lender's office, in
      lawful money of the United States of America and in immediately available
      funds.

                  If any payment under this Agreement or any other Loan Document
      shall be specified to be made upon a day which is not a Business Day, it
      shall be made on the next succeeding day which is a Business Day, unless,
      with respect to a payment due in respect of a LIBOR Advance, such Business
      Day falls in another calendar month, in which case payment shall be made
      on the preceding Business Day. Any extension of time shall in such case be
      included in computing interest and fees, if any, in connection with such
      payment.

                  The Borrower agrees to pay principal, interest, fees and all
      other amounts due under the Loan Documents without deduction, set-off or
      counterclaim.

                  If some but less than all amounts due from the Borrower are
      received by the Lender, the Lender shall apply such amounts in the
      following order of priority: (i) to the payment of all fees and expenses
      of the Lender then due and payable; (ii) to the payment of interest then
      due and payable on the Term Note; (iii) to the payment of all other
      amounts not otherwise referred to in this clause (d) then due and payable
      under the Loan Documents; and (v) to the payment of principal then due and
      payable on the Term Note.

                  LIBOR Lending Offices. The Lender's initial LIBOR Lending
      Office is set forth opposite its name in Schedule 1 attached hereto. The
      Lender shall have the right at any time and from time to time to designate
      a different office of the Lender or of any Affiliate of the Lender as the
      Lender's LIBOR Lending Office, and to transfer any outstanding LIBOR
      Advance to such LIBOR Lending Office.

                  [Reserved]

                  [Reserved]

                  Taxes.

                  Any and all payments by the Borrower hereunder shall be made,
      in accordance with Section 2.10, free and clear of and without deduction
      for any and all present or future taxes, levies, imposts, deductions,
      charges and withholdings, and all liabilities with respect thereto,
      excluding, in the case of the Lender, (i) taxes imposed on, based upon or
      measured by its overall net income and franchise taxes, doing business
      taxes or minimum taxes imposed on it, (A) by the jurisdiction under the
      laws of which the Lender is organized or in which it has its applicable
      lending office or any political subdivision thereof; or (B) by any other
      jurisdiction, or any political subdivision thereof, other than those
      imposed solely by reason of (1) an asserted relation of such jurisdiction
      to the transactions contemplated by this Agreement, (2) the activities of
      the Borrower in such jurisdiction or (3) the activities in connection with
      the transactions contemplated by this Agreement of the Lender and (ii) any
      Taxes in the nature of transfer, stamp, recording or documentary taxes
      resulting from a transfer (other than as a result of foreclosure) by the
      Lender of all or any portion of its interest in this Agreement, the Term
      Note or any other Loan Documents (all such non-excluded taxes, levies,
      imposts, deductions, charges, withholdings and liabilities being
      hereinafter referred to as "Taxes"). If the Borrower shall be required by
      Law to deduct or withhold any Taxes from or in respect of any sum payable
      hereunder to the Lender (x) the sum payable shall be increased as may be
      necessary so that after making all required deductions for Taxes
      (including deductions applicable to additional sums payable under this
      Section 2.14 the Lender receives an amount equal to the sum it would have
      received had no such deductions been made, (y) the Borrower shall make
      such deductions and (z) the Borrower shall pay the full amount of Taxes
      deducted to the relevant taxation authority or other authority in
      accordance with Applicable Law.

                  In addition, the Borrower agrees to pay any and all stamp and
      documentary taxes and any and all other excise and property taxes, charges
      and similar levies (other than Taxes described in clause (ii) of the first
      sentence of Section 2.14(a) that arise from any payment made hereunder or
      from the execution, delivery or registration of, or otherwise with respect
      to, this Agreement or any other Loan Document (hereinafter referred to as
      "Other Taxes").

                  The Borrower will indemnify the Lender for the full amount of
      Taxes and Other Taxes (including, without limitation, any Taxes or Other
      Taxes imposed by any jurisdiction on amounts payable under this Section
      2.14) paid by the Lender and all liabilities (including penalties,
      additions to tax, interest and reasonable expenses) arising therefrom or
      with respect thereto whether or not such Taxes or Other Taxes were
      correctly or legally asserted, other than penalties, additions to tax,
      interest and expenses arising as a result of gross negligence or willful
      misconduct on the part of the Lender, provided, however, that the Borrower
      shall have no obligation to indemnify the Lender unless and until the
      Lender shall have delivered to the Borrower a certificate certifying that
      such Taxes or Other Taxes (and/or penalties, additions to tax, interest
      and reasonable expenses) were actually incurred by the Lender, which
      certificate shall be conclusive absent manifest or demonstrable error.
      Nothing in this Section 2.14 shall provide the Borrower or any Subsidiary
      or Affiliate of the Borrower the right to inspect the records, files or
      books of Lender. This indemnification shall be made upon written demand
      therefor by the Lender.

                  As soon as practicable after the date of any payment of Taxes,
      the Borrower will furnish to the Lender the original or a certified copy
      of a receipt evidencing payment thereof. For purposes of this Section 2.14
      the terms "United States" and "United States Person" shall have the
      meanings set forth in Section 7701 of the Code.

                  [Reserved]

                  Without prejudice to the survival of any other agreement of
      the Borrower hereunder, the agreements and obligations of the Borrower
      contained in this Section 2.14 shall survive the payment in full of
      principal and interest hereunder.

      CONDITIONS PRECEDENT

                  Conditions Precedent to the Term Loan. The obligation of the
      Lender to permit the initial drawing of the Term Loan is subject to (i)
      receipt by the Lender of the following items which are to be delivered, in
      form and substance satisfactory to the Lender and (ii) satisfaction of the
      following conditions which are to be satisfied:

                  A loan certificate of each Obligor certifying as to the
      accuracy of its representations and warranties in the Loan Documents with
      respect to such Obligor, and including a certificate of incumbency with
      respect to each authorized signatory, and including (i) a copy of the
      articles or certificate of incorporation or similar organizational
      documents of such Obligor, certified to be true, complete and correct by
      the secretary of state of its state of organization, (ii) a copy of the
      Bylaws or similar governance documents of such Obligor, certified to be
      true, complete and correct, (iii) a copy of a certificate of good standing
      and a certificate of existence for its state of organization and each
      state in which the nature of its business requires it to be qualified and
      (iv) a copy of the resolutions of such Obligor authorizing the
      transactions set forth in the Loan Documents;

                  a duly executed Term Note payable to the order of the Lender;

                  (i) opinions of counsel to each Obligor addressed to the
      Lender in the form of Exhibit G hereto and (ii) reliance letters addressed
      to the Lender from all counsel giving opinions related to the
      Transactions.

                  payment of the Special Counsel's fees and expenses rendered through the
      date hereof, to the extent invoiced;

                  any fees or expenses required to be paid on or before the Agreement
      Date pursuant to Section 2.4 hereof;
                       -----------

                  a duly executed Commitment Letter;

                  certified copies of requests for information (Form UCC-11) (or
      a similar search reports certified by parties acceptable to the Lender)
      dated a date reasonably near the date of the initial drawing of the Term
      Loan listing all effective financing statements which name the Borrower or
      a Subsidiary or Affiliate of the Borrower (under its present name and any
      previous names) as debtor together with copies of such financing
      statements;

                  [Reserved.]

                  acknowledgment copies of proper financing statements (Form
      UCC-1) naming the Borrower or its Subsidiaries or Affiliates, as
      applicable, as debtor in favor of the Lender, as secured party or other
      similar instruments or documents as may be necessary or in the reasonable
      opinion of the Lender desirable under the Uniform Commercial Code of all
      appropriate jurisdictions or any comparable law to perfect the Lender's
      security interest in all Collateral.

                  the Subsidiary Guaranty, duly executed by each Guarantor set forth on
      Schedule 10 hereto;

                  [Reserved]

                  a Pledge Agreement duly executed by the Borrower, Peppertree
      and Newco II, pursuant to which the Borrower, Peppertree and Newco II
      shall pledge the Peppertree Interests and the GSHA Note to the Lender,
      together with:

                  stock certificates representing all of the issued and
      outstanding shares of Pledged Stock, together with undated stock powers
      endorsed in blank;

                  such other instruments and documents in respect of the Pledged Stock as
      the Lender may reasonably request;

                  the Security Agreement, duly executed by the Borrower and each
      Guarantor set forth on Schedule 10 hereto;

                  an organization chart and management chart, giving effect to the
      Transactions as if they had occurred.

                  the Borrower shall have delivered to the Lender a complete and
      correct copy of the most recent (as of the Agreement Date) projections of
      the consolidated net income and cash flow of (i) the Peppertree Entities
      (excluding Great Smokies) and (ii) the Borrower and all of its
      Subsidiaries and Affiliates (assuming completion of the Transactions
      excluding Great Smokies) for each of the two fiscal years following the
      Agreement Date;

                  the Borrower shall have delivered a complete and correct
      statement of the estimated sources and uses of all funds to be received or
      expended by the Borrower, Newco I and Newco II in connection with the
      Transactions excluding Great Smokies, including without limitation, all
      costs and expenses expected to be incurred in connection with the
      Transactions excluding Great Smokies;

                  the Borrower shall have delivered a pro forma Compliance
      Certificate covering the five fiscal quarters from December 31, 1999 to
      December 31, 2000, giving effect to the Transactions as if they had
      occurred; and

                  the Borrower shall have delivered to the Lender a complete and
      correct copy of the most recent projections of the consolidated net income
      and cash flow of (i) the Peppertree Entities and (ii) the Borrower and all
      of its Subsidiaries and Affiliates (in each case after giving effect to
      the Great Smokies Acquisition) for each of the two fiscal years following
      the Agreement Date;

                  the Borrower shall have delivered a complete and correct
      statement of the estimated sources and uses of all funds to be received or
      expended by the Borrower and Newco II in connection with the Great Smokies
      Acquisition, including without limitation, all costs and expenses expected
      to be incurred in connection with the Great Smokies Acquisition;

                  the Borrower shall have delivered a pro forma Compliance
      Certificate covering the five fiscal quarters from December 31, 1999 to
      December 31, 2000, giving effect to the Great Smokies Acquisition; and

                  the Lender shall have received copies of each of the
      Transaction Documents, all of the terms, conditions provisions of which
      shall be reasonably satisfactory in form and substance to the Lender; no
      term, condition or provision thereof shall have been amended, modified or
      waived without the prior written consent of the Lender; the Transactions
      shall have been consummated or shall be consummated simultaneously with
      the making of the Term Loan, in each case in all material respects in
      accordance with the terms hereof, the terms of the Transaction Documents
      and applicable law (and without the waiver of any such terms not approved
      by the Lender); the Lender shall have received such certificates and other
      evidence with respect to the foregoing as it shall reasonably request and
      all of the representations and warranties set forth in the Loan Documents
      would be, immediately after giving effect to the Transactions, true and
      correct in all material respects.

                  all of the representations and warranties set forth in the
      Loan Documents shall be complete and correct in all material respects
      after giving effect to the Transactions.

                  there shall be no litigation or administrative proceedings,
      governmental investigations or other legal or regulatory developments,
      actual or threatened, that, singly or in the aggregate, could reasonably
      be expected to result in a Material Adverse Effect, or could materially
      and adversely affect the Borrower, Newco I or Newco II to fully and timely
      perform its obligations under the Transaction Documents, or the ability of
      the parties to consummate the Transactions.

                  all requisite governmental authorities and third parties shall
      have approved or consented to the Transactions to the extent any such
      approvals or consents are required and the other transactions contemplated
      hereby and there shall be no governmental or judicial action, actual or
      threatened, that has or would have, singly or in the aggregate, a
      reasonable likelihood of restraining, preventing or imposing burdensome
      conditions on the Transactions or the other transaction contemplated
      hereby.

                  Conditions Precedent to All Drawings of the Term Loan,
      Conversions and Continuations. The obligation of the Lender to permit any
      drawing (including the initial drawing) of the Term Loan hereunder, to
      convert any existing Reference Rate Advance into a LIBOR Advance or to
      continue any existing LIBOR Advance is subject to fulfillment of the
      following conditions immediately prior to or contemporaneously with each
      such drawing, conversion or continuation:

                  All of the representations and warranties of each Obligor
      under the Loan Documents shall be true and correct at such time in all
      material respects, both before and after giving effect to the application
      of the proceeds of the Term Loan;

                  The incumbency of the Authorized Signatories shall be as
      stated in the certificate of incumbency delivered in each Obligor's loan
      certificate pursuant to Section 3.1(a) or as subsequently modified and
      reflected in a certificate of incumbency delivered to the Lender. The
      Lender may, without waiving this condition, consider it fulfilled and a
      representation by the Borrower made to such effect if no written notice to
      the contrary, dated or before the date of such drawing, conversion, or
      continuation, is received by the Lender from the Borrower prior to the
      making of such drawing, conversion or continuation;

                  There shall not exist a Default or Event of Default hereunder
      that has not been waived or cured to the satisfaction of the Lender;

                  No order, judgment, injunction or decree of any Tribunal shall
      purport to enjoin or restrain any such drawing, conversion or
      continuation;

                  The Borrower shall have delivered to the Lender a schedule
      identifying the application of the proceeds of each drawing of the Term
      Loan;

                  In form and substance reasonably satisfactory to the Lender
      and Special Counsel, such other documents, instruments, certificates and
      as the Lender may reasonably require in connection with the transactions
      contemplated hereby, including without limitation, evidence of the status,
      organization or authority of the Borrower or any Subsidiary or Affiliate
      of the Borrower, and the enforceability of the Obligations and the
      perfection of the Lender's security interest in the Collateral;

                  the Borrower shall have delivered to the Lender a Borrowing
      Request/Designation with respect to each drawing of the Term Loan; and

                  All legal matters incident to this Agreement, the Term Loan
      and extensions of credit hereunder and the other Loan Documents shall be
      reasonably satisfactory to the Lender.

            The acceptance of the benefits of each drawing of the Term Loan or
      conversion or continuation with respect to a LIBOR Advance shall
      constitute a representation and warranty by the Borrower that no Default
      or Event of Default shall have occurred and be continuing or would result
      from such drawing, conversion or continuation.

                  Conditions Precedent to the Great Smokies Drawing. The
      obligation of the Lender to permit the Great Smokies Drawing is subject to
      (i) receipt by the Lender of the following items which are to be
      delivered, in form and substance satisfactory to the Lender and (ii)
      satisfaction of the following conditions:

                  a Pledge Agreement duly executed by the Borrower and Newco II,
      pursuant to which the Borrower and Newco II shall pledge the Partnership
      Interests to the Lender, together with:

                  certificates representing all of the Partnership Interests, together
      with undated powers endorsed in blank; and
                  such other instruments and documents in respect of the
      Partnership Interests as the Lender may reasonably request.

                  no term, condition or provision of the Transaction Documents
      shall have been amended, modified or waived without the prior written
      consent of the Lender; the Great Smokies Acquisition shall have been
      consummated or shall be consummated simultaneously with the making of the
      Great Smokies Drawing, in each case in all material respects in accordance
      with the terms hereof, the terms of the Transaction Documents and
      applicable law (and without the waiver of any such terms not approved by
      the Lender); the Lender shall have received such certificates and other
      evidence with respect to the foregoing as it shall reasonably request and
      all of the representations and warranties set forth in the Loan Documents
      would be, immediately after giving effect to the Great Smokies
      Acquisition, true and correct in all material respects.

                  there shall be no litigation or administrative proceedings,
      governmental investigations or other legal or regulatory developments,
      actual or threatened, that, singly or in the aggregate, could reasonably
      be expected to result in a Material Adverse Effect, or could materially
      and adversely affect the ability of the Borrower or Newco II to fully and
      timely perform its obligations under the Transaction Documents, or the
      ability of the parties to consummate the Great Smokies Acquisition.

                  all requisite governmental authorities and third parties shall
      have approved or consented to the Great Smokies Acquisition to the extent
      any such approvals or consents are required and there shall be no
      governmental or judicial action, actual or threatened, that has or would
      have, singly or in the aggregate, a reasonable likelihood of restraining,
      preventing or imposing burdensome conditions on the Great Smokies
      Acquisition or the transactions contemplated hereby.

                  Conditions Precedent to the Deferred Payment Drawing. The
      obligation of the Lender to permit the Deferred Payment Drawing is subject
      to (i) receipt by the Lender of the following items which are to be
      delivered, in form and substance satisfactory to the Lender and (ii)
      satisfaction of the following conditions:

                  no term, condition or provision of the Transaction Documents
      shall have been amended, modified or waived without the prior written
      consent of the Lender; the Deferred Payment shall be consummated
      simultaneously with the making of the Deferred Payment Drawing, in each
      case in all material respects in accordance with the terms hereof, the
      terms of the Transaction Documents and applicable law (and without the
      waiver of any such terms not approved by the Lender); the Lender shall
      have received such certificates and other evidence with respect to the
      foregoing as it shall reasonably request and all of the representations
      and warranties set forth in the Loan Documents would be, immediately after
      giving effect to the Deferred Payment, true and correct in all material
      respects.

                  there shall be no litigation or administrative proceedings,
      governmental investigations or other legal or regulatory developments,
      actual or threatened, that, singly or in the aggregate, could reasonably
      be expected to result in a Material Adverse Effect, or could materially
      and adversely affect the ability of the Borrower or Newco II to fully and
      timely perform its obligations under the Transaction Documents.

      Representations and Warranties

                  Representations and Warranties. Each of the Borrower, Newco I
      and Newco II hereby represents and warrants to the Lender as follows (it
      being understood that such representations and warranties are made as if
      the Transactions had been consummated but, as to the Peppertree Entities,
      are made to the best of the knowledge of the Borrower, Newco I and Newco
      II):

                  Organization; Power; Qualification. The respective
      jurisdiction of organization or incorporation and percentage ownership by
      the Borrower of the Subsidiaries and Affiliates listed on Schedule 4 are
      true and correct as of the Agreement Date and immediately after giving
      effect to the Transactions. Schedule 4 is a complete and accurate listing
      as of the Agreement Date, showing with respect to the Borrower and each
      Subsidiary and Affiliate of the Borrower (a) its mailing address, which is
      its principal place of business, (b) the classes of its Capital Stock and
      the number and amount of its Capital Stock authorized and outstanding and
      (c) each record and beneficial owner of 5% or more of the outstanding
      Capital Stock of each Subsidiary and Affiliate. All of the outstanding
      Capital Stock of the Borrower and each Subsidiary and Affiliate of the
      Borrower is validly issued, fully paid and non-assessable. Each of the
      Borrower and its Subsidiaries and Affiliates is a corporation or other
      legal Person duly organized, validly existing and in good standing under
      the laws of its state of incorporation or organization. Each of the
      Borrower and its Subsidiaries and Affiliates has the legal power and
      authority to own its properties and to carry on its business as now being
      and hereafter proposed to be conducted. Each of the Borrower and its
      Subsidiaries and Affiliates is authorized to do business, duly qualified
      and in good standing as set forth in Schedule 7 and no qualification or
      authorization is necessary in any other jurisdictions in which the
      character of its properties or the nature of its business requires such
      qualification or authorization, except where the failure to be so
      qualified or authorized could not reasonably be expected to have a
      Material Adverse Effect.

                  Authorization. The Borrower has legal power and has taken all
      necessary legal action to authorize it to borrow hereunder. Each of the
      Borrower and its Subsidiaries and Affiliates has legal power and has taken
      all necessary legal action to execute, deliver and perform the Loan
      Documents and the Transaction Documents to which it is party in accordance
      with the terms thereof, and to consummate the transactions contemplated
      thereby. Each Loan Document and Transaction Document has been duly
      executed and delivered by the Borrower or the Subsidiary or Affiliate of
      the Borrower executing it. Each of the Loan Documents and the Transaction
      Documents to which the Borrower or any of its Subsidiaries or Affiliates
      is a party is a legal, valid and binding obligation of the Borrower or
      such Subsidiary or Affiliate, as applicable, enforceable in accordance
      with its terms, subject, as to enforcement of remedies, to the following
      qualifications: (i) equitable principles generally, and (ii) Debtor Relief
      Laws (insofar as any such law relates to the bankruptcy, insolvency or
      similar event of the Borrower or any Subsidiary or Affiliate of the
      Borrower).

                  Necessary Authorizations; Compliance with Other Loan
      Documents. The execution, delivery and performance by the Borrower and
      each of its Subsidiaries and Affiliates of the Loan Documents and the
      Transaction Documents to which it is a party, and the consummation of the
      transactions contemplated thereby, do not and will not (i) require any
      consent or approval under any indenture, agreement or other instrument, to
      which the Borrower or any Subsidiary or Affiliate of the Borrower is a
      party or by which it or its properties may be bound relating to
      Indebtedness for borrowed money, except for consents set forth in Schedule
      2, which have been obtained (except as set forth in such Schedule 2) and
      copies of which shall have been delivered to the Lender, (ii) violate any
      Applicable Law, (iii) conflict with, result in a breach of, or constitute
      a default under the certificate of incorporation, by-laws or other similar
      organizational or governance document of the Borrower or any Subsidiary or
      Affiliate of the Borrower, (iv) conflict with, result in a breach of, or
      constitute a default under any Necessary Authorization, the result of
      which could reasonably be expected to have a Material Adverse Effect, or
      (v) result in or require the creation or imposition of any Lien (other
      than Liens in favor of the Lender to secure the Obligations hereunder)
      upon or with respect to any property now owned or hereafter acquired by
      the Borrower or any Subsidiary or Affiliate of the Borrower.

                  Business. The Borrower and its Subsidiaries and Affiliates are
      engaged primarily in the business of acquiring, developing and operating
      time share resorts and other time-share activities, providing financing
      for the purchase of Units or other interests in its time-share resorts and
      other leisure activities (exclusive of gaming), making acquisition and
      development loans to third party developers and activities directly
      related to the foregoing.

                  Licenses, etc. All Necessary Authorizations have been duly
      obtained, and are in full force and effect without any known conflict with
      the rights of others and free from any unduly burdensome restrictions,
      unless the failure to obtain or have in effect such Necessary
      Authorizations could not reasonably be expected to result in a Material
      Adverse Effect. The Borrower and its Subsidiaries and Affiliates are and
      will continue to be in compliance in all material respects with all
      provisions thereof. No circumstance exists which could reasonably be
      expected to impair the utility of the Necessary Authorization or the right
      to renew such Necessary Authorization the effect of which could reasonably
      be expected to have a Material Adverse Effect. No Necessary Authorization
      is the subject of any pending or, to the best of the Borrower's knowledge,
      threatened challenge, suspension, cancellation or revocation, the effect
      of which could reasonably be expected to have a Material Adverse Effect.

                  Compliance with Law. The Borrower and its Subsidiaries and
      Affiliates are in compliance in all respects with all Applicable Laws,
      except where the failure to so comply could not reasonably be expected to
      have a Material Adverse Effect.

                  Title to Properties. To the best of the knowledge of the
      Borrower, Newco I and Newco II, the Borrower and its Subsidiaries and
      Affiliates have good and indefeasible title to, or a valid leasehold
      interest in, all of their material assets. None of their assets is subject
      to any Liens, except Permitted Liens. No financing statement or other Lien
      filing (except relating to Permitted Liens) is on file in any state or
      jurisdiction that names the Borrower or any of its Subsidiaries or
      Affiliates as debtor or covers (or purports to cover) any assets of the
      Borrower or any of its Subsidiaries or Affiliates. The Borrower and its
      Subsidiaries and Affiliates have not signed any such financing statement
      or filing, nor any security agreement authorizing any Person to file any
      such financing statement or filing (except relating to Permitted Liens).

                  Litigation. Except as reflected on Schedule 3 hereto, as of
      the Agreement Date there is no Litigation pending against, or, to the
      Borrower's current actual knowledge, threatened against the Borrower, or
      in any other manner relating directly and adversely to the Borrower or any
      of its Subsidiaries or Affiliates, or any of their respective properties,
      in any court or before any arbitrator of any kind or before or by any
      governmental body in which the amount claimed (in excess of applicable
      insurance) exceeds $1,000,000.

                  Taxes. All material federal, state and other tax returns of
      the Borrower and its Subsidiaries and Affiliates required by law to be
      filed have been duly filed or extensions have been timely filed, and all
      material federal, state and other Taxes upon the Borrower, its
      Subsidiaries and Affiliates or any of their properties, income, profits
      and assets, which are due and payable, have been paid, unless the same are
      being diligently contested in accordance with Section 5.6 hereof. The
      charges, accruals and reserves on the books of the Borrower and its
      Subsidiaries and Affiliates in respect of their Taxes are, in the
      reasonable judgment of the Borrower, adequate.

                  Financial Statements; Material Liabilities.
                  ------------------------------------------

                  The Borrower has heretofore delivered to the Lender (a) the
      audited consolidated balance sheets of (1) the Borrower and its
      Subsidiaries and (2) each of the Peppertree Entities as at December 31,
      1998, and the related statements of earnings and changes in investment and
      statement of cash flows for the twelve-month period then ended, and (b)
      unaudited consolidated balance sheets of (1) the Borrower and its
      Subsidiaries and (2) each of the Peppertree Entities as at September 30,
      1999, and the related statements of earnings and statement of cash flows
      for the nine-month period then ended. Such financial statements were
      prepared in conformity with GAAP (except for the absence of footnotes) and
      fairly present, in all material respects, the financial position of the
      Borrower and its Subsidiaries as at the date thereof and the combined
      results of operations and cash flows for the period covered thereby.

                  The projected financial statements of the Borrower and its
      Subsidiaries delivered to the Lender prior to or on the Agreement Date
      were prepared in good faith and management of the Borrower believes them
      to be based on reasonable assumptions (which assumptions have been
      included in the most recent projections furnished to the Lender prior to
      the Agreement Date) and to fairly present in all material respects the
      projected financial condition of the Borrower and its Subsidiaries and the
      projected results of operations as of the dates and for the periods shown
      for the Borrower and its Subsidiaries, it being recognized by the Lender
      that such projections as to future events are not to be viewed as facts
      and that actual results during the period or periods covered by any such
      projections may differ from the projected results.

                  The financial statements of the Borrower and its Subsidiaries
      delivered to the Lender (pursuant to Sections 6.3 and 6.4 hereof fairly
      present in all material respects their respective financial condition and
      their respective results of operations as of the dates and for the periods
      shown, all in accordance with GAAP, subject to normal year-end
      adjustments. The latest of such financial statements reflects all material
      liabilities, direct and contingent, of the Borrower and each Subsidiary of
      the Borrower that are required to be disclosed in accordance with GAAP. As
      of the date of the latest of such financial statements, there were no
      Guaranties, liabilities for Taxes, forward or long-term commitments or
      unrealized or anticipated losses from any unfavorable commitments that are
      substantial in amount that are required to be reflected but that are not
      reflected on such financial statements or the footnotes thereto.

                  The Borrower has heretofore delivered to the Lender its
      unaudited pro forma consolidated balance sheet and related statement of
      income as of the end of and for the fourth fiscal quarter of 1999 and each
      fiscal quarter in 2000, prepared as if the Transactions had occurred on
      such date and during such period. Such pro forma financial statements have
      been prepared in good faith by the Borrower, based on the assumptions used
      to prepare the pro forma financial information contained in the
      Confidential Memorandum (which assumptions are believed by the Borrower on
      the date hereof and on the Agreement Date to be reasonable), are based on
      the best information available to the Borrower as of the date of delivery
      thereof, accurately reflect all adjustments required to be made to give
      effect to the Transactions and present fairly on a pro forma basis the
      estimated consolidated financial position of the Borrower and its
      consolidated Subsidiaries and Affiliates as of such dates, assuming that
      the Transactions had actually occurred at such dates.

                  Representations and Warranties in Transaction Documents. All
      representations and warranties set forth in the Transaction Documents were
      true and correct in all material respects at the time as of which such
      representations and warranties were made (or deemed made), provided that
      to the extent the representations and warranties in the Transaction
      Documents are made by persons other than the Borrower, its Subsidiaries or
      Affiliates, then the representation and warranties so made by such persons
      shall be deemed to be true and correct in all material respects for
      purposes of this Section 4.1(k) unless the aggregate effect of all
      misrepresentations made by such other person in the Transaction Documents
      are such as would evidence a Material Adverse Effect.

                  No Adverse Change. Since December 31, 1998, no event or
      circumstance has occurred or arisen which is reasonably likely to have a
      Material Adverse Effect.

                  ERISA. None of the Borrower or its Controlled Group maintains
      or contributes to any Plan subject to Title IV of ERISA other than those
      disclosed to the Lender in writing. Each such Plan (other than any
      Multiemployer Plan) is in compliance in all material respects with the
      applicable provisions of ERISA, the Code, and any other applicable Law,
      except to the extent that failure to so comply would not reasonably be
      expected to have a Material Adverse Effect. With respect to each Plan
      (other than any Multiemployer Plan) of the Borrower and each member of its
      Controlled Group, all reports required under ERISA or any other Applicable
      Law to be filed with any Tribunal, the failure of which to file or to be
      true and correct in all material respects could reasonably be expected to
      result in liability of the Borrower or any member of its Controlled Group
      in excess of $500,000, have been duly filed. No Plan of the Borrower or
      any member of its Controlled Group has been terminated under Section
      4041(c) of ERISA nor has any accumulated funding deficiency (as defined in
      Section 412(a) of the Code) been incurred (without regard to any waiver
      granted under Section 412 of the Code), nor has any funding waiver from
      the Internal Revenue Service been received or requested the result of
      which termination, incurrence or waiver could reasonably be expected to
      have a Material Adverse Effect. None of the Borrower or any member of its
      Controlled Group has failed to make any contribution or pay any amount due
      or owing as required under the terms of any such Plan, or by Section 412
      of the Code or Section 302 of ERISA by the due date under Section 412 of
      the Code and Section 302 of ERISA, the result of which could reasonably be
      expected to have a Material Adverse Effect. There has been no ERISA Event
      or any event requiring disclosure under Section 4041(c)(3)(C) or 4063(a)
      of ERISA with respect to any Plan (other than any Multiemployer Plan) or
      its related trust of the Borrower or any member of its Controlled Group
      that is likely to have a Material Adverse Effect. The present value of the
      benefit liabilities, as defined in Title IV of ERISA, of each Plan subject
      to Title IV of ERISA (other than a Multiemployer Plan) of the Borrower and
      each member of its Controlled Group does not exceed by more than $500,000
      the present value of the assets of each such Plan as of the most recent
      valuation date using each such Plan's actuarial assumptions at such date.
      There are no pending, or to the Borrower's knowledge threatened, claims,
      lawsuits or actions (other than routine claims for benefits) asserted or
      instituted against the assets of any Plan or its related trust or against
      any fiduciary of a Plan with respect to the operation of such Plan, the
      result of which could reasonably be expected to have a Material Adverse
      Effect. None of the Borrower or, to the Borrower's knowledge, any member
      of its Controlled Group has engaged in any non-exempt prohibited
      transactions, within the meaning of Section 406 of ERISA or Section 4975
      of the Code, in connection with any Plan the result of which could
      reasonably be expected to have a Material Adverse Effect. None of the
      Borrower or any member of its Controlled Group has incurred or reasonably
      expects to incur (A) any liability under Title IV of ERISA (other than
      premiums due under Section 4007 of ERISA to the PBGC), (B) any withdrawal
      liability (and no event has occurred which with the giving of notice under
      Section 4219 of ERISA would result in such liability) under Section 4201
      of ERISA as a result of a complete or partial withdrawal (within the
      meaning of Section 4203 or 4205 of ERISA) from a Multiemployer Plan, as
      defined in Section 1.1 of this Agreement but without regard to the
      five-year limitation provided therein or (C) any liability under Section
      4062 of ERISA to the PBGC or to a trustee appointed under Section 4042 of
      ERISA in excess of $500,000 in the aggregate. None of the Borrower, any
      member of its Controlled Group, or any organization to which the Borrower
      or any member of its Controlled Group is a successor or parent corporation
      within the meaning of ERISA Section 4069(b), has engaged in a transaction
      within the meaning of ERISA Section 4069, the result of which could
      reasonably be expected to have a Material Adverse Effect. None of the
      Borrower or any member of its Controlled Group maintains or has
      established any Plan, which is a welfare benefit plan within the meaning
      of Section 3(1) of ERISA and which provides for continuing benefits or
      coverage for any participant or any beneficiary of any participant after
      such participant's termination of employment, except as may be required by
      any Applicable Law, the result of which could reasonably be expected to
      have a Material Adverse Effect. Each of the Borrower and its Controlled
      Group which maintains a Plan which is a welfare benefit plan within the
      meaning of Section 3(1) of ERISA has complied in all material respects
      with any applicable notice and continuation requirements of the
      Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, and
      the regulations thereunder. None of the Borrower or any member of its
      Controlled Group maintains, has established, or has ever participated in a
      multiemployer welfare benefit arrangement within the meaning of Section
      3(40)(A) of ERISA.

                  Compliance with Regulations T, U and X. The Borrower is not
      engaged principally or as one of its important activities in the business
      of extending credit for the purpose of purchasing or carrying any margin
      stock within the meaning of Regulations T, U and X of the Board of
      Governors of the Federal Reserve System, and no part of the proceeds of
      the Term Loan will be used to purchase or carry any margin stock or to
      extend credit to others for the purpose of purchasing or carrying any
      margin stock. No more than 25% of the assets of the Borrower and its
      Subsidiaries or Affiliates are margin stock. None of the Borrower or its
      Subsidiaries or Affiliates nor any agent acting on their behalf, has taken
      or will knowingly take any action which would cause this Agreement or any
      other Loan Documents to violate any regulation of the Board of Governors
      of the Federal Reserve System or to violate the Securities Exchange Act of
      1934, in each case as in effect now or as the same may hereafter be in
      effect.

                  Authorization of Tribunals. The Borrower and its Subsidiaries
      and Affiliates are not required to obtain any Necessary Authorization on
      or prior to the Agreement Date that has not already been obtained from, or
      effect any material filing or registration that has not already been
      effected with, any Tribunal in connection with the execution and delivery
      of this Agreement, any other Loan Document, or the Transaction Documents
      or the performance thereof, in accordance with their respective terms,
      including any borrowings hereunder, except for the filing of financing
      statements (and other similar notices) containing a description of the
      Collateral with certain Tribunals.

                  Absence of Default. The Borrower and its Subsidiaries and
      Affiliates are in compliance in all material respects with all of the
      provisions of their certificate of incorporation and by-laws (or similar
      organizational and governance documents), and no event has occurred or
      failed to occur, which has not been remedied or waived, the occurrence or
      non-occurrence of which constitutes, or which with the passage of time or
      giving of notice or both would constitute, (i) an Event of Default or (ii)
      a default by the Borrower or any of its Subsidiaries or Affiliates under
      any indenture, agreement or other instrument, or any judgment, decree or
      order to which the Borrower or any of its Subsidiaries or Affiliates or by
      which they or any of their respective properties is bound relating to
      Indebtedness for borrowed money, except to the extent that such default
      could not reasonably be expected to have a Material Adverse Effect.

                  Governmental Regulation. Neither the Borrower nor any of its
      Subsidiaries or Affiliates is subject to regulation under the Public
      Utility Holding Company Act of 1935, the Federal Power Act, the Interstate
      Commerce Act or the Investment Company Act of 1940. Neither the entering
      into or performance by the Borrower of the Loan Documents, the Transaction
      Documents nor the issuance of the Term Note violates any provision of such
      act or requires any consent, approval, or authorization of, or
      registration with, the Securities and Exchange Commission or any other
      Tribunal pursuant to any provisions of such act.

                  Environmental Matters. Except as reflected on Schedule 8,
      neither the Borrower nor any Subsidiary or Affiliate of the Borrower has
      any current actual knowledge that any substance deemed hazardous by any
      Applicable Environmental Law, has been installed (i) on any real property
      fee title to which is now owned by the Borrower or any of its Subsidiaries
      or Affiliates or (ii) by Borrower or any of its Subsidiaries or Affiliates
      on any real property leased by the Borrower or any of its Subsidiaries or
      Affiliates, in either case in a manner which does not comply with
      Applicable Environmental Laws, except to the extent that the failure to so
      comply could not reasonably be expected to have a Material Adverse Effect.
      Except as set forth on Schedule 8, the Borrower and its Subsidiaries are
      not in violation of or subject to any existing, pending or, to the best of
      the Borrower's knowledge, threatened investigation or inquiry by any
      Tribunal or to any remedial obligations under any Applicable Environmental
      Laws, the effect of which could reasonably be expected to have a Material
      Adverse Effect. The Borrower and its Subsidiaries and Affiliates have not
      obtained and are not required to obtain any permits, licenses or similar
      authorizations other than certificates of occupancy and building permits
      and other authorizations that have been obtained to construct, occupy,
      operate or use any buildings, improvements, fixtures, and equipment
      forming a part of any real property owned or leased by the Borrower or any
      Subsidiary or Affiliate of the Borrower by reason of any Applicable
      Environmental Laws, except to the extent that the failure to so obtain
      could not reasonably be expected to have a Material Adverse Effect. The
      Borrower and its Subsidiaries and Affiliates undertook, at the time of
      acquisition of fee title to any real property, reasonable inquiry into the
      previous ownership and uses of such real property consistent with good
      commercial or customary practice. The Borrower and its Subsidiaries and
      Affiliates have taken reasonable steps to determine, and, except as set
      forth on Schedule 8, the Borrower and its Subsidiaries and Affiliates have
      no current actual knowledge, that any hazardous substances or solid wastes
      have been disposed of or otherwise released (i) on or to the real property
      fee title to which is owned by the Borrower or any of its Subsidiaries or
      Affiliates or (ii) by Borrower or any of its Subsidiaries or Affiliates on
      or to any real property leased by Borrower or any of its Subsidiaries or
      Affiliates, all within the meaning of the Applicable Environmental Laws,
      the effect of which could reasonably be expected to have a Material
      Adverse Effect. To the extent required to do so by any Applicable
      Environmental Laws, the Borrower and its Subsidiaries and Affiliates have
      disposed of all hazardous substances and solid wastes (if any), all within
      the meaning of the Applicable Environmental Laws, generated in their
      respective businesses in compliance with all Applicable Environmental
      Laws, except to the extent that the failure to so comply could not
      reasonably be expected to have a Material Adverse Effect.

                  Certain Fees. No broker's, finder's or other fee or commission
      will be payable by the Borrower (other than to the Lender hereunder) with
      respect to the making of the Commitment or the Term Loan hereunder. The
      Borrower agrees to indemnify and hold harmless the Lender from and against
      any claims, demand, liability, proceedings, costs or expenses asserted
      with respect to or arising in connection with any such fees or commissions
      payable by the Borrower.

                  Patents, Etc. The Borrower and its Subsidiaries and Affiliates
      have collectively obtained or applied for all patents, trademarks, service
      marks, trade names, copyrights, licenses and other rights, free from
      burdensome restrictions, that are necessary for the operation of their
      business as presently conducted and as proposed to be conducted, except to
      the extent that the failure to so obtain or apply could not reasonably be
      expected to have a Material Adverse Effect. Nothing has come to the
      current actual knowledge of the Borrower or any of its Subsidiaries or
      Affiliates to the effect that (i) any process, method, part or other
      material presently contemplated to be employed by the Borrower or any
      Subsidiary or Affiliate of the Borrower may infringe any patent,
      trademark, service mark, trade name, copyright, license or other right
      owned by any other Person, or (ii) there is pending or overtly threatened
      any claim or litigation against or affecting the Borrower or any
      Subsidiary or Affiliate of the Borrower contesting its right to sell or
      use any such process, method, part or other material, which could
      reasonably be expected to have a Material Adverse Effect.

                  Disclosure. All factual information furnished by the Borrower
      or any of its Subsidiaries or Affiliates in writing to the Lender in
      connection with this Agreement, the other Loan Documents or the
      Transaction Documents or any transaction contemplated herein or therein
      is, and all other factual information hereafter furnished by or on behalf
      of the Borrower or any of its Subsidiaries or Affiliates in writing to the
      Lender will be, true and accurate in all material respects on the date as
      of which such information is dated or certified and not incomplete by
      omitting to state any fact necessary to make such information (taken as a
      whole) not misleading at such time in light of the circumstances under
      which such information was provided. There is no fact known to the
      Borrower or any of its Subsidiaries or Affiliates and not known to the
      public generally that could reasonably be expected to have a Material
      Adverse Effect, which has not been set forth in this Agreement or in the
      documents, certificates and statements furnished to the Lender by or on
      behalf of the Borrower prior to the date hereof in connection with the
      transactions contemplated hereby.

                  Solvency.  The Borrower is, and the Borrower and its Subsidiaries and
                  --------
      Affiliates on a consolidated basis are, Solvent.

                  Labor Relations. Except as provided on Schedule 9, neither the
      Borrower nor any Subsidiary or Affiliate of the Borrower is a party to a
      collective bargaining agreement or similar agreement, and the Borrower and
      each Subsidiary and Affiliate is in compliance in all material respects
      with all Laws respecting employment and employment practices, terms and
      conditions of employment, wages and hours and other laws related to the
      employment of its employees, except where the failure to comply could not
      reasonably be expected to result in a Material Adverse Effect, and there
      are no arrears in the payment of wages, withholding or social security
      taxes, unemployment insurance premiums or other similar obligations of the
      Borrower or any Subsidiary or Affiliate of the Borrower or for which the
      Borrower or any Subsidiary or Affiliate may be responsible other than in
      the ordinary course of business, except for such unpaid or unwithheld
      arrears which could not reasonably be expected to result in a Material
      Adverse Effect. There is no strike, work stoppage or labor dispute with
      any union or group of employees pending or overtly threatened involving
      Borrower or any Subsidiary or Affiliate that could reasonably be expected
      to have a Material Adverse Effect.

                  Consolidated Business Entity. The Borrower and its
      Subsidiaries and Affiliates are engaged in the business of developing,
      financing and operating time-share resorts and other leisure activities
      (exclusive of gaming). These operations require financing on a basis such
      that the credit supplied can be made available from time to time to the
      Borrower and various of its Subsidiaries and Affiliates, as required for
      the continued successful operation by the Borrower and its Subsidiaries
      and Affiliates as a whole. The Borrower and its Subsidiaries and
      Affiliates expect to derive benefit (and the board of directors of the
      Borrower and its Subsidiaries and Affiliates have determined that the
      Borrower and its Subsidiaries and Affiliates may reasonably be expected to
      derive benefit), directly or indirectly, from the credit extended by the
      Lender hereunder, both in their separate capacities and as members of the
      group of companies, since the successful operation and condition of the
      Borrower and its Subsidiaries and Affiliates is dependent on the continued
      successful performance of the functions of the group as a whole.

                  Time-Share Interest Exchange Network. All of the Projects are
      members and participants, pursuant to validly executed and enforceable
      written agreements, in Resort Condominiums International, L.L.C. and/or
      Interval International. The Borrower and its Subsidiaries and Affiliates
      have paid all fees and other amounts due and owing under such agreements
      and are not otherwise in default in any material respect thereunder.

                  Time-Share Interests. The sale, offering of sale, and
      financing of Time-Share Interests in the Projects (i) do not constitute
      the sale, or the offering of sale, of securities subject to registration
      requirements of the Securities Act of 1933, as amended, or any state or
      foreign securities Law, (ii) except to the extent that any such
      violation(s), either individually or in the aggregate, could not
      reasonably be expected to have a Material Adverse Effect, do not violate
      any time-sharing or other Law of any state or foreign country in which
      sales or solicitation of Time-Share Interests occur, and (iii) except to
      the extent that any such violation(s), either individually or in the
      aggregate, could not reasonably be expected to have a Material Adverse
      Effect, do not violate any consumer credit or usury Laws of any state or
      foreign country in which sales or solicitation of Time-Share Interests
      occur. Except to the extent that any such failure(s), either individually
      or in the aggregate, could not reasonably be expected to have a Material
      Adverse Effect, the Borrower and its Subsidiaries and Affiliates have not
      failed to make or cause to be made any registrations or declarations with
      any Tribunal necessary to the ownership of the Projects or to the conduct
      of its business, including, without limitation, the operation of the
      Projects and the sale, or offering for sale, of Time-Share Interests
      therein. Except to the extent that any such noncompliance(s), either
      individually or in the aggregate, could not reasonably be expected to have
      a Material Adverse Effect, the Borrower and its Subsidiaries and
      Affiliates have, to the extent required by its activities and businesses,
      fully complied with all of the applicable provisions of (A) the Consumer
      Credit Protection Act, as amended, (B) the Federal Trade Commission Act,
      as amended, (C) the Federal Interstate Land Sales Full Disclosure Act, as
      amended, (D) any other Laws of any Tribunal otherwise applicable, and (E)
      all rules and regulations promulgated under any of the foregoing. Complete
      and correct copies of documents requested by the Lender which have been
      and are being used by the Borrower and its Subsidiaries in connection with
      the Projects and the sale or offering for sale of Time-Share Interests
      therein have been delivered to the Lender. The Time-Share Interests in the
      Projects constitute undivided interests in real property under the Laws of
      the jurisdictions in which the applicable Units are located.

                  Common Areas. To the extent that the Borrower or any of its
      Subsidiaries or Affiliates are legally obligated to construct same, the
      common areas and amenities appurtenant to sold Time-Share Interests, and
      the streets and other off-site improvements contained within the Projects
      have been completed or a bond insuring the completion thereof has been
      obtained and such interests in such common areas are free and clear of all
      Liens except Permitted Liens.

                  Reserved.

                  Year 2000 Compliance. Each of the Borrower and each Subsidiary
      and Affiliate of the Borrower has conducted a comprehensive review and
      assessment of its computer applications and made inquiry of its key
      supplier, vendors and customers with respect to the "year 2000 problem"
      (that is, the risk that computer applications may not be able to properly
      perform date-sensitive functions after December 31, 1999) and, based on
      that review and inquiry, it does not believe the year 2000 problem will
      result in a material adverse change in its business condition (financial
      or otherwise), operations, properties or prospects, or ability to repay
      the credit.

                  Reserved.

                  Assumed Indebtedness.  Except as set forth on Schedule 11, no
                  --------------------
      Indebtedness was assumed in connection with the Transactions.

                  Projections. The projections delivered to the Lender pursuant
      to Sections 3.1 and 4.1(j) hereof have been prepared by management of the
      Borrower on the basis of assumptions acceptable to Lender, which such
      management reasonably believes are fair and reasonable in light of the
      historical financial performance of the Peppertree Entities and of current
      and reasonably foreseeable business conditions.

                  Indebtedness. Schedule 6 sets forth a complete and correct
      list and brief description as of the Agreement Date of all Indebtedness
      for borrowed money of the Borrower, and its Subsidiaries and Affiliates
      and all Liens securing such Indebtedness (excluding any Indebtedness
      evidenced by the Term Note and any Liens created by any Collateral
      Document) existing on the Agreement Date after giving effect to the
      Transactions.

                  No Default. On the Agreement Date after giving effect to the
      Transactions, (A) to the knowledge of the Borrower, no Default or Event of
      Default has occurred and is continuing, and (B) no Default or Event of
      Default has occurred and is continuing under the terms of any of the
      documents pursuant to or in connection with which any Indebtedness of the
      Borrower, or any of its Subsidiaries or Affiliates was incurred.

                  Material Contracts. Schedule 12 contains a list of all
      contracts (other than (A) contracts for Indebtedness for borrowed money
      and (B) labor contracts which are set forth in Schedule 9) which would
      require over the full term thereof payments by or to the Borrower or any
      of its Subsidiaries or Affiliates of more than $2,000,000 or is otherwise
      material to the business of the Borrower, its Subsidiaries or Affiliates
      ("Material Contracts") to which the Borrower or any of its Subsidiaries or
      Affiliates is a party as of the Agreement Date after giving effect to the
      Transactions contemplated to occur on the Agreement Date. As of the
      Agreement Date, each of the Material Contracts on Schedule 12 is in full
      force and effect. None of the Borrower and any of its Subsidiaries or
      Affiliates is in material breach or violation of any of the terms,
      conditions or provisions thereof. None of the Borrower and any of its
      Subsidiaries or Affiliates has transferred or subordinated any of its
      rights or interests in any of the Material Contracts, and such rights and
      interests are subject to no Liens except Permitted Liens. None of the
      Borrower and any of its Subsidiaries or Affiliates is subject to any
      restriction contained in its charter or by-laws which is reasonably likely
      to have a Material Adverse Effect.

                  Insurance. Except as set forth in Schedule 13, (i) all
      insurance policies to which the Borrower or any Subsidiary or Affiliate of
      the Borrower is a party or that provide coverage to any director or
      officer of the Borrower or any Subsidiary or Affiliate of the Borrower or
      to any Transferred Asset (A) are valid, outstanding, and enforceable, (B)
      are issued by an insurer that is financially sound and reputable, (C)
      taken together provide adequate insurance for the properties, assets and
      business of the Borrower and its Subsidiaries and Affiliates and the
      Transferred Assets for all risks normally insured against by a Person
      carrying on the same or similar business or businesses, (D) comply with
      the insurance requirements of all laws and contracts to which the Borrower
      or any of its Subsidiaries or Affiliates is a party or by which it is
      bound, except where such failures to so comply would not, in the
      aggregate, have a Material Adverse Effect, and (E) do not provide for any
      retrospective premium adjustment or other experience-based liability on
      the part of any of the Borrower or any of its Subsidiaries or Affiliates;
      (ii) neither the Borrower nor any of its Subsidiaries or Affiliates has
      received any refusal of coverage or any notice that a defense will be
      afforded with reservation of rights, or any notice of cancellation or any
      other indication that any insurance policy is no longer in full force or
      effect or will not be renewed or that the issuer of any policy is not
      willing or able to perform its obligations thereunder, except where such
      refusals, failures to renew or cancellations would not, in the aggregate,
      have a Material Adverse Effect; (iii) each of the Borrower and its
      Subsidiaries and Affiliates has paid all premiums due with respect to all
      periods up to and including the date hereof and has otherwise performed
      all of its obligations under each policy to which it is a party or that
      provides coverage to the Borrower or any Subsidiary or Affiliate of the
      Borrower or any officers or directors thereof, except where the failure to
      do so would not have a Material Adverse Effect; and (iv) each of the
      Borrower and each Subsidiary and Affiliate of the Borrower has given
      notice to the insurer of all material claims that may be insured thereby.

                  Licenses, Permits, Etc. Except as set forth on Schedule 14,
      Borrower, and its Subsidiaries and Affiliates possess all franchises,
      certificates, licenses, permits, registrations, and other authorizations
      from governmental bodies (including, without limitation, any such
      franchises, certificates, licenses, permits, registrations, and other
      authorizations required under the provisions of any applicable laws), free
      from burdensome restrictions, that are necessary for the ownership,
      maintenance and operation of their respective properties and assets, and
      for the conduct of their respective businesses as now conducted after
      giving effect to the Transactions, except where the failure to possess any
      of the foregoing is not likely to have a Material Adverse Effect, and none
      of Borrower and its Subsidiaries or Affiliates is in violation of any
      thereof in any material respect.

                  Indebtedness to Officers, Etc. Except as set forth on Schedule
      15 hereto, as of the Agreement Date, none of the Borrower or its
      Subsidiaries or Affiliates is indebted, directly or indirectly, to any of
      their respective officers, directors or stockholders or to any of the
      respective spouses or children of any of such Persons, except with respect
      to salaries and related employee compensation and expense reimbursement
      and management fees accrued in the ordinary course of business, except for
      the Equivest Note and except, for any period after the Agreement Date, for
      any amounts not exceeding in the aggregate $250,000.

                  Real Property. Schedule 16 sets forth a complete and correct
      list and brief description, as of the Agreement Date after giving effect
      to the Transactions, of all real property owned by the Borrower and all of
      its Subsidiaries and Affiliates on the date hereof, including the type of
      interests in, and location or use of such real property, together with a
      complete and correct list of all leases of real property to which any of
      such Persons is a party, identifying the parties to each such lease and
      the property to which it relates, as of the Agreement Date after giving
      effect to the Transactions.

                  Good Title. As of the Agreement Date after giving effect to
      the Transactions, each of the Borrower and its Subsidiaries and Affiliates
      has good and marketable title to all of its respective properties (other
      than properties leased from others), subject to no Lien of any kind except
      Permitted Liens.

                  Operating Condition; Etc. As of the Agreement Date after
      giving effect to the Transactions, the properties owned by the Borrower
      and its Subsidiaries and Affiliates are in good operating condition and
      repair, ordinary wear and tear excepted, are free and clear of any known
      defects except such defects as do not materially interfere with the
      continued use thereof in the conduct of normal operations of the Borrower
      and its Subsidiaries and Affiliates, and the properties owned by, leased
      to or used by the Borrower and its Subsidiaries and Affiliates, are able
      to serve the function for which they are currently being used in all
      material respects, in each case except as disclosed in Schedule 17. As of
      the Agreement Date after giving effect to the Transactions, the assets
      owned by, leased to or used by the Borrower and its Subsidiaries and
      Affiliates constitute all of the material assets used in the conduct of
      the business of the Borrower and its Subsidiaries and Affiliates as
      presently conducted, and, except as disclosed on Schedule 17 neither this
      Agreement nor the Term Note nor any other document, nor any transaction
      contemplated under any such agreement or document, will materially
      adversely affect any right, title or interest of the Borrower or its
      Subsidiaries or Affiliates in and to any of such assets (except for
      Permitted Liens).

                  Quiet Enjoyment. As of the Agreement Date after giving effect
      to the Transactions, each of the Borrower and its Subsidiaries and
      Affiliates enjoys peaceful and undisturbed possession under all leases,
      whether of realty or personality, to which it is respectively a party, and
      all such leases are in full force and effect; and none of the Borrower or
      its Subsidiaries or Affiliates is in default under any of the terms of any
      such lease, and neither the Borrower nor its Subsidiaries or Affiliates
      knows of any default under any such leases by any third party; except in
      each case for matters that would not have a Material Adverse Effect.

                  Security Documents. (i) The Pledge Agreement is effective to
      create in favor of the Lender, a legal, valid and enforceable security
      interest in the Collateral covered by the Pledge Agreement and, when the
      Collateral is delivered to the Lender, together with undated powers
      executed in blank, the Lender shall have a fully perfected first priority
      Lien on, and security interest in, all right, title and interest of the
      pledgors thereunder in such Collateral, in each case prior and superior in
      right to any other Person.

                  The Security Agreement is effective to create in favor of the
      Lender, a legal, valid and enforceable security interest in the Collateral
      covered by the Security Agreement and, when financing statements in
      appropriate form are filed in the offices specified in the Security
      Agreement, the Lender shall have a fully perfected Lien on, and security
      interest in, all right, title and interest of the grantors thereunder in
      such Collateral, in each case prior and superior in right to any other
      Person, other than with respect to Liens expressly permitted by Section
      7.2 hereof.

                  Survival of Representations and Warranties, etc. All
      representations and warranties made under this Agreement and the other
      Loan Documents shall be deemed to be made at and as of the Agreement Date
      and at and as of the date of each drawing of the Term Loan and each
      conversion and continuation of a LIBOR Advance. All such representations
      and warranties shall survive, and not be waived by, the execution hereof
      by the Lender, any investigation or inquiry by the Lender, or by the
      making of any drawing of the Term Loan and each conversion and
      continuation of a LIBOR Advance under this Agreement.

      General Covenants

            So long as any of the Obligations are outstanding and unpaid or the
      Commitment is outstanding (whether or not the conditions to borrowing have
      been or can be fulfilled):

                  Preservation of Existence and Similar Matters.  The Borrower shall, and
      shall cause each Subsidiary and Affiliate of the Borrower to:

                  except as otherwise permitted pursuant to Section 7.4 hereof,
      preserve and maintain or timely obtain and thereafter preserve and
      maintain, its existence, rights, franchises, licenses, authorizations,
      consents, privileges and all other Necessary Authorizations from any
      Tribunal, the loss of which could reasonably be expected to have a
      Material Adverse Effect; and

                  except as otherwise permitted pursuant to Section 7.4 hereof,
      qualify and remain qualified and authorized to do business in each
      jurisdiction in which the character of its properties or the nature of its
      business requires such qualification or authorization, unless the failure
      to do so could not reasonably be expected to have a Material Adverse
      Effect.

                  Business; Compliance with Applicable Law. The Borrower and its
      Subsidiaries and Affiliates shall (a) engage primarily in the businesses
      set forth in Section 4.1(d) hereof, and (b) comply in all respects with
      the requirements of all Applicable Law, except where the failure to so
      comply could not reasonably be expected to have a Material Adverse Effect.

                  Maintenance of Properties. To the maximum extent that the
      Borrower or any Subsidiary or Affiliate of the Borrower has the right,
      power or authority (whether as a matter of contract, at law or otherwise)
      to do so, the Borrower shall, and shall cause each Subsidiary and
      Affiliate of the Borrower to, maintain or cause to be maintained all its
      properties (whether owned or held under lease) in reasonably good repair,
      working order and condition, taken as a whole, and from time to time make
      or cause to be made all appropriate (in the reasonable judgment of the
      Borrower) repairs, renewals, replacements, additions, betterments and
      improvements thereto, except where the failure to so maintain, repair,
      renew, replace or improve could not reasonably be expected to have a
      Material Adverse Effect.

                  Accounting Methods and Financial Records. The Borrower shall,
      and shall cause each Subsidiary and Affiliate of the Borrower to, maintain
      a system of accounting established and administered in accordance with
      GAAP, keep accurate records and books of account in which complete entries
      will be made and all transactions reflected in accordance with GAAP, and
      keep accurate and complete records of its respective assets. The Borrower
      and each of its Subsidiaries and Affiliates shall maintain its fiscal year
      in the manner in existence on the Agreement Date.

                  Insurance. The Borrower shall, and shall cause each Subsidiary
      and Affiliate of the Borrower to, maintain insurance from responsible
      companies in such amounts and against such risks as shall be customary and
      usual in the industry for companies of similar size and capability. Each
      insurance policy shall (a) provide for at least 30 days' prior notice to
      the Lender of any proposed termination or cancellation of such policy,
      whether on account of default or otherwise and (b) otherwise contain the
      requirements for insurance set forth in the Security Agreement.

                  Payment of Taxes and Claims. The Borrower shall, and shall
      cause each Subsidiary and Affiliate of the Borrower to, pay and discharge
      all material Taxes to which they are subject prior to the date on which
      penalties attach thereto, and all lawful material claims for labor,
      materials and supplies which, if unpaid, might become a Lien upon any of
      its properties; except that no such Tax or claim need be paid which is
      being diligently contested in good faith by appropriate proceedings and
      for which adequate reserves shall have been set aside on the appropriate
      books, but only so long as no Lien shall attach with respect thereto and
      no foreclosure, distraint, sale or similar proceedings shall have been
      commenced. The Borrower shall, and shall cause each Subsidiary and
      Affiliate of the Borrower to, timely file all information returns (or
      extensions of such filing deadlines) required by federal, state or local
      tax authorities.

                  Visits and Inspections. The Borrower shall, and shall cause
      each Subsidiary and Affiliate of the Borrower to, promptly permit
      representatives of Lender (and third party consultants and auditors
      retained by the Lender) from time to time after reasonable notice and
      during business hours by the Lender to (a) visit and inspect the
      properties of the Borrower, the Subsidiaries and Affiliates of the
      Borrower, as often as the Lender shall reasonably deem advisable, (b)
      audit, inspect and make extracts from and copies of the books and records
      of the Borrower, and each Subsidiary and Affiliate of the Borrower, and
      (c) discuss with the appropriate directors, officers, employees and
      auditors of the Borrower and each Subsidiary and Affiliate of the
      Borrower, the business, assets, liabilities, financial positions, results
      of operations and business prospects of the Borrower and each Subsidiary
      of the Borrower. The Borrower shall pay the reasonable fees, costs and
      expenses related to up to three (3) such inspections and audits performed
      by, or on behalf of, the Lender. Prior to the occurrence of an Event of
      Default, all such visits and inspections shall be conducted during normal
      business hours. Following the occurrence and during the continuance of an
      Event of Default, such visits, inspections and audits shall be conducted
      at any time requested by the Lender without any requirement for reasonable
      notice and at the expense of the Borrower.

                  Use of Proceeds. The proceeds of the Term Loan shall be used
      by the Borrower, Newco I and Newco II to finance a portion of the cash
      consideration for the Transaction.

                  INDEMNITY.

            THE BORROWER AGREES TO DEFEND, PROTECT, INDEMNIFY AND HOLD HARMLESS
      THE LENDER, ITS AFFILIATES, AND ITS (INCLUDING SUCH AFFILIATES') OFFICERS,
      DIRECTORS, EMPLOYEES, AGENTS, ATTORNEYS, SHAREHOLDERS AND CONSULTANTS
      (INCLUDING, WITHOUT LIMITATION, THOSE RETAINED IN CONNECTION WITH THE
      SATISFACTION OR ATTEMPTED SATISFACTION OF ANY OF THE CONDITIONS SET FORTH
      HEREIN) OF EACH OF THE FOREGOING (COLLECTIVELY, "INDEMNITEES") FROM AND
      AGAINST ANY AND ALL LIABILITIES, OBLIGATIONS, LOSSES, DAMAGES, PENALTIES,
      ACTIONS, PROCEEDINGS (WHETHER CIVIL OR CRIMINAL), JUDGMENTS, SUITS,
      CLAIMS, REASONABLE COSTS, REASONABLE EXPENSES AND REASONABLE DISBURSEMENTS
      OF ANY KIND OR NATURE WHATSOEVER (INCLUDING, WITHOUT LIMITATION, THE
      REASONABLE FEES AND DISBURSEMENTS OF COUNSEL FOR SUCH INDEMNITEES IN
      CONNECTION WITH ANY INVESTIGATIVE, ADMINISTRATIVE OR JUDICIAL PROCEEDING,
      WHETHER OR NOT SUCH INDEMNITEES SHALL BE DESIGNATED A PARTY THERETO),
      IMPOSED ON, INCURRED BY, OR ASSERTED AGAINST SUCH INDEMNITEES (WHETHER
      DIRECT OR INDIRECT AND WHETHER BASED ON ANY FEDERAL, STATE, OR LOCAL LAWS
      AND REGULATIONS, UNDER COMMON LAW OR AT EQUITABLE CAUSE, OR ON CONTRACT,
      TORT OR OTHERWISE, ARISING FROM OR CONNECTED WITH THE PAST, PRESENT OR
      FUTURE OPERATIONS OF THE BORROWER, ITS SUBSIDIARIES OR AFFILIATES, OR
      THEIR RESPECTIVE PREDECESSORS IN INTEREST, OR THE PAST, PRESENT OR FUTURE
      ENVIRONMENTAL CONDITION OF PROPERTY OF THE BORROWER OR ITS SUBSIDIARIES OR
      AFFILIATES), RELATING TO OR ARISING OUT OF THIS AGREEMENT, THE OTHER LOAN
      DOCUMENTS, THE TRANSACTION DOCUMENTS OR ANY ACT, EVENT OR TRANSACTION OR
      ALLEGED ACT, EVENT OR TRANSACTION RELATING OR ATTENDANT THERETO, THE
      MANAGEMENT OF THE TERM LOAN, INCLUDING IN CONNECTION WITH, OR AS A RESULT,
      IN WHOLE OR IN PART, OF ANY ORDINARY OR MERE NEGLIGENCE OF THE LENDER OR
      THE USE OR INTENDED USE OF THE PROCEEDS OF THE TERM LOAN HEREUNDER, OR IN
      CONNECTION WITH ANY INVESTIGATION OF ANY POTENTIAL MATTER COVERED HEREBY,
      OR THE PROJECTS, OR ANY ACT OR OMISSION BY THE BORROWER, OR ANY OF ITS
      SUBSIDIARIES OR AFFILIATES, OR THE EMPLOYEES OR AGENTS OF ANY OF THEM, OR
      ANY ACT OR OMISSION BY ALL BROKERS, AGENTS OR OTHER SALESMEN OF TIME-SHARE
      INTERESTS, BUT EXCLUDING ANY CLAIM OR LIABILITY THAT ARISES AS THE RESULT
      OF THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF ANY INDEMNITEE, AS
      FINALLY JUDICIALLY DETERMINED BY A COURT OF COMPETENT JURISDICTION
      (COLLECTIVELY, "INDEMNIFIED MATTERS"). TO THE EXTENT THAT ANY INDEMNIFIED
      MATTER INVOLVES ONE OR MORE INDEMNITEES, SUCH INDEMNITEES SHALL USE THE
      SAME LEGAL COUNSEL UNLESS ANY INDEMNITEE IN ITS REASONABLE DISCRETION
      DETERMINES THAT CONFLICTS EXIST OR MAY ARISE IN CONNECTION WITH SUCH
      REPRESENTATION.

                  WITHOUT DUPLICATION, THE BORROWER SHALL PERIODICALLY, UPON
      REQUEST, REIMBURSE EACH INDEMNITEE FOR ITS REASONABLE LEGAL AND OTHER
      ACTUAL REASONABLE EXPENSES (INCLUDING THE REASONABLE COST OF ANY
      INVESTIGATION AND PREPARATION) INCURRED IN CONNECTION WITH ANY INDEMNIFIED
      MATTER. THE REIMBURSEMENT, INDEMNITY AND CONTRIBUTION OBLIGATIONS UNDER
      THIS SECTION SHALL BE IN ADDITION TO ANY LIABILITY WHICH THE BORROWER MAY
      OTHERWISE HAVE, SHALL EXTEND UPON THE SAME TERMS AND CONDITIONS TO EACH
      INDEMNITEE, AND SHALL BE BINDING UPON AND INURE TO THE BENEFIT OF ANY
      SUCCESSORS, ASSIGNS, HEIRS AND PERSONAL REPRESENTATIVES OF THE BORROWER,
      THE LENDER AND ALL OTHER INDEMNITEES. THIS SECTION SHALL SURVIVE ANY
      TERMINATION OF THIS AGREEMENT AND PAYMENT OF THE OBLIGATIONS.

                  Environmental Law Compliance. The use which the Borrower or
      any Subsidiary or Affiliate of the Borrower intends to make of any real
      property which is owned or leased by it will not result in the disposal or
      other release of any hazardous substance or solid waste on or to such real
      property which is in violation of Applicable Environmental Laws, the
      effect of which could reasonably be expected to have a Material Adverse
      Effect. As used herein, the terms "hazardous substance" and "release" as
      used in this Section shall have the meanings specified in CERCLA (as
      defined in the definition of Applicable Environmental Laws), and the terms
      "solid waste" and "disposal" shall have the meanings specified in RCRA (as
      defined in the definition of Applicable Environmental Laws); provided,
      however, that if CERCLA or RCRA is amended so as to broaden or lessen the
      meaning, of any term defined thereby, such broader or lesser meaning shall
      apply subsequent to the effective date of such amendment; and provided
      further, to the extent that any other law applicable to the Borrower, any
      Subsidiary or Affiliate or any of their respective properties establishes
      (to the exclusion of the applicability of CERCLA and RCRA) a meaning for
      "hazardous substance," "release," "solid waste," or "disposal" which is
      broader or lesser than that specified in either CERCLA or RCRA, such
      broader or lesser meaning shall apply. Each of the Borrower, Newco I and
      Newco II agrees to indemnify and hold the Lender harmless from and
      against, and to reimburse the Lender with respect to, any and all claims,
      demands, causes of action, loss, damage, liabilities, reasonable costs and
      reasonable expenses (including reasonable attorneys' fees and courts
      costs) of any kind or character, known or unknown, fixed or contingent,
      asserted against or incurred by any of them at any time and from time to
      time by reason of or arising out of (a) the failure of the Borrower or any
      Subsidiary or Affiliate to perform any of their obligations hereunder
      regarding asbestos or Applicable Environmental Laws, (b) any violation on
      or before the Release Date of any Applicable Environmental Law in effect
      on or before the Release Date, and (c) any act, omission, event or
      circumstance existing or occurring on or prior to the Release Date
      (including without limitation the presence on such real property or
      release from such real property of hazardous substances or solid wastes
      disposed of or otherwise released on or prior to the Release Date),
      resulting from or in connection with the ownership of the real property,
      regardless of whether the act, omission, event or circumstance constituted
      a violation of any Applicable Environmental Law at the time of its
      existence or occurrence, provided that, the Borrower shall not be under
      any obligation to indemnify the Lender to the extent that any such
      liability arises as the result of the gross negligence or willful
      misconduct of the Lender, as finally judicially determined by a court of
      competent jurisdiction. The provisions of this paragraph shall survive the
      Release Date and shall continue thereafter in full force and effect.

                  Further Assurances. At any time or from time to time upon
      request by the Lender, the Borrower or any Subsidiary or Affiliate of the
      Borrower shall execute and deliver such further documents and do such
      other acts and things as the Lender may reasonably request in order to
      effect fully the purposes of this Agreement and the other Loan Documents
      and to provide for payment of the Obligations in accordance with the terms
      of this Agreement and the other Loan Documents. Without limiting the
      generality of the foregoing, the Borrower agrees to (a) update and deliver
      to the Lender supplements to Schedules 3 and 4 hereto at the time of
      delivery of the financial statements set forth in Sections 6.3 and 6.4
      hereof if the information provided therein is not complete and correct,
      and (b) update and deliver to the Lender, modifications to any other
      exhibits and schedules to any Loan Document, promptly upon discovery that
      the information provided therein is not complete and correct.

                  Management of Projects, Etc. To the maximum extent that the
      Borrower or any Subsidiary or Affiliate of the Borrower, as applicable,
      has the right, power or authority (whether as a matter of contract, at law
      or otherwise) to do so, the Borrower shall, or shall cause the applicable
      Subsidiary or Affiliate, to be a party to and maintain management
      contracts with respect to each Project and with Holiday Inn SunSpree.

                  [Reserved].

                  Owners Associations. The Borrower shall, or shall cause the
      applicable Subsidiary or Affiliate to, cause each Purchaser to
      automatically be a member of each Project's owners association or
      associations, if any, and to be entitled to vote on the affairs thereof
      (subject, however, to any preferential voting rights in favor of the
      Borrower or any of its Subsidiaries or Affiliates, as applicable, as
      permitted under applicable time-share Laws). Each such owners association
      shall have the authority to fix and levy pro rata upon each Purchaser
      annual assessments to cover the costs of maintaining and operating such
      Project (including, without limitation, taxes and assessments not levied
      by the appropriate taxing authority directly against owners of Time-Share
      Interests) and to establish a reasonable reserve for improvements, the
      replacement of property and furnishings, and contingencies. If the
      Borrower or any of its Subsidiaries or Affiliates controls an owners
      association, the Borrower or such Subsidiaries or Affiliates will while it
      controls such association: (i) cause such owners association to discharge
      timely and completely its obligations under such Project's governing
      documents and maintain the reserve described above and (ii) to the extent
      requested to do so by the Lender, pay or loan to such owners association,
      not less often than is necessary to provide sufficient funding for such
      owners association in order to maintain, preserve and maximize the
      ownership, quality, safety, marketability, value and appearance of the
      applicable Project, the difference between (A) the cumulative total amount
      of the maintenance and operating expenses incurred by such association,
      together with the amount of any installment of real property taxes
      currently due and payable with respect to such Project not directly levied
      against owners of Time-Share Interests, through the end of the calendar
      month preceding the month in which such payment or loan is made and (B)
      the cumulative total amount of assessments (less amounts thereof allocated
      to reserve expenses) payable to the association by Time-Share Interest
      owners other than the Borrower or its Subsidiaries or Affiliates, as
      appropriate, through the end of the calendar month preceding the month in
      which such payment or loan is made.

                  Note Receivable Information. The Borrower shall, and shall
      cause each of its Subsidiaries and Affiliates to, maintain accurate and
      complete files relating to the Notes Receivable and the A&D Loans
      Receivable, and such files will contain copies of each Note Receivable and
      each note evidencing each A&D Loan Receivable, copies of all relevant
      credit memoranda relating to such Notes Receivable and A&D Loan
      Receivables and all collection information and correspondence related
      thereto.

                  [Reserved].

                  Time-Share Interest Exchange Network. Each of the Projects
      shall continue to be members and participants, pursuant to validly
      executed and enforceable written agreements, in Resort Condominiums
      International, L.L.C. and/or Interval International. Borrower and its
      Subsidiaries and Affiliates shall pay, in a timely manner, all fees and
      other amounts due and owing under such agreements and shall not otherwise
      take any action, or fail to take any action, the result of which would be
      to create any default in any material respect thereunder.

             [Reserved]

                  Subsidiary Guaranty; Security Agreement. Within 30 days of the
      date on which any entity becomes a New Material Subsidiary or a New
      Material Affiliate of the Borrower, the Borrower shall cause each such New
      Material Subsidiary and New Material Affiliate to enter into a guaranty
      and a security agreement substantially in the form of the Subsidiary
      Guaranty and the Security Agreement respectively, together with such other
      documents as shall be determined by the Lender.

      Information Covenants

            So long as any of the Obligations are outstanding and unpaid or the
      Commitment is outstanding (whether or not the conditions to borrowing have
      been or can be fulfilled), the Borrower shall furnish or cause to be
      furnished to the Lender or shall notify the Lender of the following
      events:

                  [Reserved].

                  [Reserved].

                  Quarterly Financial Statements and Information. (a) Within 45
      days after the end of each of the first three fiscal quarters of each
      fiscal year, the consolidated balance sheets of the Borrower and its
      Subsidiaries as at the end of such fiscal quarter and the related
      consolidated statements of income for such fiscal quarter and for the
      elapsed portion of the year ended with the last day of such fiscal
      quarter, and consolidated statements of cash flow for the elapsed portion
      of the year ended with the last day of such fiscal quarter, certified by
      the president, chief financial officer or treasurer of the Borrower, to
      the effect that such statements present fairly in accordance with GAAP
      (except for the absence of footnotes), the financial position and results
      of operations of the Borrower and its Subsidiaries as at the end of and
      for such fiscal quarter, and for the elapsed portion of the year ended
      with the last day of such fiscal quarter, subject only to normal year-end
      adjustments.

                  Within 45 days after the end of each fiscal quarter of each
      fiscal year of the Borrower, a statement of aging of Notes Receivable of
      the Borrower and its Subsidiaries and Affiliates, in a form satisfactory
      to the Lender.

                  Annual Financial Statements and Information; Certificate of No Default.

                  Within 90 days after the end of each fiscal year, a copy of
      (i) the consolidated balance sheets of the Borrower and its Subsidiaries,
      as of the end of the current and prior fiscal years and (ii) the
      consolidated statements of earnings and consolidated statements of changes
      in shareholders' equity, and statements of cash flow as of and through the
      end of such fiscal year, prepared in accordance with GAAP and certified by
      independent certified public accountants reasonably acceptable to the
      Lender (provided, however, any former big six public accounting firm and
      Firley Moran Freer & Eassa, P.C. shall be acceptable to the Lender), which
      opinion shall be in scope and substance in accordance with generally
      accepted auditing standards and shall be unqualified as to scope of audit
      and going concern.

                  As soon as available, but in any event within 30 days after
      December 31, 1999 and within 30 days after the end of each fiscal year
      thereafter, a copy of the annual consolidated financial projections
      (containing such information as may be requested by the Lender, including,
      but not limited to, pro forma income statements, balance sheets and
      statements of cash flow) of the Borrower and the Subsidiaries and
      Affiliates of the Borrower for the succeeding fiscal year.

                  Compliance Certificate. At the time financial statements are
      furnished pursuant to Sections 6.3 and 6.4 hereof, the Compliance
      Certificate, completed as provided therein, executed by the president, the
      chief financial officer, or treasurer of the Borrower.

                  Copies of Other Reports and Notices.

                  Promptly upon their becoming available, a copy of (i) all
      material final reports or letters submitted to the Borrower or any
      Subsidiary or Affiliate of the Borrower by accountants in connection with
      any annual, interim or special audit, including without limitation any
      final report prepared in connection with the annual audit referred to in
      Section 6.4 hereof, and, if requested by the Lender, any other comment
      letter submitted to management in connection with any such audit, (ii)
      each financial statement, report, notice or proxy statement sent by the
      Borrower to stockholders generally, (iii) each regular, periodic or other
      report and any registration statement (other than statements on Form S-8)
      or prospectus (or material written communication in respect of any
      thereof) filed by the Borrower or any Subsidiary or Affiliate of the
      Borrower with any securities exchange, with the Securities and Exchange
      Commission or any successor agency, (iv) all press releases concerning
      material financial aspects of the Borrower or any Subsidiary of the
      Borrower, and (v) to the extent requested by the Lender, forms of
      documents being used in connection with the Projects to the extent
      different from those previously furnished to the Lender;

                  Promptly upon becoming aware (i) that the holder(s) of any
      note(s) or other evidence of indebtedness or other security of the
      Borrower or any Subsidiary or Affiliate of the Borrower in excess of
      $500,000 in the aggregate has given notice or taken any action with
      respect to a breach, failure to perform, claimed default or event of
      default thereunder, (ii) of the occurrence or non-occurrence of any event
      which constitutes or which with the passage of time or giving of notice or
      both could constitute a material breach by the Borrower or any Subsidiary
      or Affiliate of the Borrower under any material agreement or instrument
      other than this Agreement to which the Borrower or any Subsidiary or
      Affiliate of the Borrower is a party or by which any of their respective
      properties may be bound, or (iii) of any event, circumstance or condition
      which could reasonably be expected to be classified as a Material Adverse
      Effect, a written notice specifying the details thereof (or the nature of
      any claimed default or event of default) and what action is being taken or
      is proposed to be taken with respect thereto;

                  Promptly upon becoming aware that any party to any Capitalized
      Lease Obligations or Operating Lease, in each case, in excess of $500,000,
      has given notice or taken any action with respect to a breach, failure to
      perform, claimed default or event of default thereunder, a written notice
      specifying the details thereof (or the nature of any claimed default or
      event of default) and what action is being taken or is proposed to be
      taken with respect thereto;

                  Promptly upon receipt thereof, information with respect to and
      copies of any notices received from any Tribunal relating to any order,
      ruling, law, information or policy that relates to a breach of or
      noncompliance with any Law, or could reasonably be expected to result in
      the payment of money by the Borrower or any Subsidiary or Affiliate of the
      Borrower in an amount of $500,000 or more in the aggregate, or otherwise
      have a Material Adverse Effect, or result in the loss or suspension of any
      Necessary Authorization where such loss could reasonably be expected to
      have a Material Adverse Effect; and

                  From time to time and promptly upon each request, such data,
      certificates, reports, statements, documents or further information
      regarding the assets, business, liabilities, financial position,
      projections, results of operations or business prospects of the Borrower
      and its Subsidiaries and Affiliates, as the Lender may reasonably request.

                  Notice of Litigation, Default and Other Matters.  Prompt notice of the
      following events after the Borrower has knowledge or notice thereof:

                  The commencement of all Litigation and investigations by or
      before any Tribunal, and all actions and proceedings in any court or
      before any arbitrator involving claims (i) for damages (including punitive
      damages) in excess of $1,000,000 (after deducting the amount with respect
      to which the Borrower or any Subsidiary or Affiliate of the Borrower is
      insured), against or in any other way relating directly to the Borrower,
      any Subsidiary or Affiliate of the Borrower, or any of their respective
      properties or businesses or (ii) which otherwise could affect any
      Collateral and which could reasonably be expected to have a Material
      Adverse Effect; and

                  Promptly upon the happening of any Event of Default or
      Default, a written notice specifying the nature and period of existence
      thereof and what action is being taken or is proposed to be taken with
      respect thereto.

                  ERISA Reporting Requirements.

                  Promptly and in any event (i) within 30 days after the
      occurrence of any ERISA Event with respect to any Plan of the Borrower or
      any member of its Controlled Group, and (ii) within ten days after the
      Borrower or any member of its Controlled Group receives a request for a
      minimum funding waiver under Section 412 of the Code, a written notice
      describing such event and describing what action is being taken or is
      proposed to be taken with respect thereto, together with a copy of any
      notice of such event that is given to the PBGC;

                  Promptly and in any event within ten Business Days after
      receipt thereof by the Borrower or any member of its Controlled Group from
      the PBGC, copies of each notice received by the Borrower or any member of
      its Controlled Group of the PBGC's intention to terminate any Plan or to
      have a trustee appointed to administer any Plan;

                  Notification within ten Business Days after the Borrower or
      any member of its Controlled Group knows that the Borrower or any such
      member of its Controlled Group has filed or intends to file a notice of
      intent to terminate any Plan under a distress termination within the
      meaning of Section 4041(c) of ERISA and a copy of such notice; and

      Negative Covenants

            So long as any of the Obligations are outstanding and unpaid or the
      Commitment is outstanding (whether or not the conditions to borrowing have
      been or can be fulfilled):

                  Indebtedness. The Borrower shall not, and shall not permit any
      Subsidiary or Affiliate of the Borrower to, create, assume, incur or
      otherwise become or remain obligated in respect of, or permit to be
      outstanding, or suffer to exist any Indebtedness, except:

                  Indebtedness under the Loan Documents and other Indebtedness to the
      Lender;

                  existing Indebtedness set forth on Schedule 6 hereto;

                  unsecured Indebtedness under lines of credit in the aggregate
      not in excess of $3,000,000 at any one time outstanding, provided that
      unsecured Indebtedness under any one line of credit shall not exceed
      $1,000,000 at any one time outstanding. (For purposes of calculating the
      limitations set forth in this clause (c), to the extent that Indebtedness
      of the Borrower or any of its Subsidiaries or Affiliates is guaranteed by
      another such party, such guaranty shall be disregarded);

                  Indebtedness secured by Liens (including Liens on Notes
      Receivable and A&D Loans Receivable) on property other than Collateral;

                  purchase money security interests (including the lien or
      retained title of a conditional vendor) covering personal property
      hereafter acquired; and

                  Indebtedness of the Borrower and of any Subsidiaries or
      Affiliates of the Borrower to each other.

                  Liens. The Borrower shall not, and shall not permit any
      Subsidiary or Affiliate of the Borrower to, create, assume, incur, permit
      or suffer to exist, directly or indirectly, any Lien on any of its assets,
      whether now owned or hereafter acquired, except Permitted Liens.

                  Investments. The Borrower shall not, and shall not permit any
      Subsidiary or Affiliate of the Borrower to, make any Investment, except
      that the Borrower and any such Subsidiary or Affiliate may purchase or
      otherwise acquire and own:

                  Cash and Cash Equivalents;

                  Accounts receivable that arise in the ordinary course of business and
      are payable on standard terms;

                  Investments in existence on the Agreement Date which are described on
      Schedule 5 hereto;
      ----------

                  Investments which are Acquisitions permitted pursuant to Section 7.6
                                                                           -----------
      hereof;

                  Investments in the form of Hedge Agreements entered into with the
      Lender;

                  Investments in Subsidiaries or Affiliates of the Borrower;
      provided, however, that each such Subsidiary or Affiliate shall have
      executed a Subsidiary Guaranty and a Security Agreement;

                  A&D Loans Receivable;

                  Investments in the form of loans secured by Notes Receivable;

                  Investments in, or with respect to, any Person other than the
      Borrower or a Subsidiary or Affiliate of the Borrower to the extent that
      (a) the aggregate amount of such Investments by the Borrower and the
      Subsidiaries and Affiliates of the Borrower does not at any time exceed
      ten percent (15%) of the combined total assets of the Borrower and the
      Subsidiaries and Affiliates of the Borrower, and (b) immediately prior to
      and after giving effect to any such proposed Investment there shall not
      exist a Default or Event of Default.

                  Liquidation, Merger.  The Borrower shall not, and shall not permit any
      Subsidiary or Affiliate of the Borrower to, at any time:

                  liquidate or dissolve itself (or suffer any liquidation or
      dissolution) or otherwise wind up, except that a Subsidiary or Affiliate
      of the Borrower may liquidate or dissolve into the Borrower or another
      Subsidiary or Affiliate of the Borrower; or

                  enter into any merger or consolidation unless (i) with respect
      to a merger or consolidation involving the Borrower, the Borrower shall be
      the surviving corporation, or if the merger or consolidation involves a
      Subsidiary or Affiliate of the Borrower and not the Borrower, such
      Subsidiary or Affiliate shall be the surviving corporation, (ii) such
      transaction shall not be utilized to circumvent compliance with any term
      or provision herein and (iii) no Default or Event of Default shall then be
      in existence or occur as a result of such transaction.

                  Sales of Assets. The Borrower shall not, and shall not permit
      any Subsidiary or Affiliate to, sell, lease, transfer or otherwise dispose
      of, any of its assets except (a) inventory and Time-Share Interests in the
      ordinary course of business, (b) obsolete or worn-out assets, (c) sales of
      tangible assets in which the Net Cash Proceeds from the disposition
      thereof are reinvested, within 90 days before or after such disposition,
      in productive tangible assets of a similar nature, (d) asset sales between
      Obligors provided that no assets of any Peppertree Entity in excess of
      $50,000 at any one time or $250,000 in the aggregate may be sold to any
      other Obligor without the prior written consent of the Lender, (e) Asset
      Sales the proceeds of which are applied in accordance with Section 2.5 and
      (f) transfers of Notes Receivable or A&D Loans Receivable to third parties
      for full and fair consideration, or in order to consummate a
      Securitization.

                  Acquisitions. The Borrower shall not, and shall not permit any
      Subsidiary or Affiliate of the Borrower to, make any Acquisitions
      provided, however, that, if immediately prior to and after giving effect
      to the proposed Acquisition there shall not exist a Default or Event of
      Default, the Borrower or any Subsidiary or Affiliate of the Borrower may
      make Acquisitions so long as (a) such Acquisition shall not be opposed by
      the board of the directors of the Person being acquired, (b) the assets,
      property or business acquired shall be in the business described in
      Section 4.1(d) hereof, and (c) if the Person(s) acquired in any single
      Acquisition owns or has property with, or if the asset(s), business(es) or
      other property acquired in any single Acquisition has, an aggregate fair
      market value in excess of $3,000,000, the Borrower shall, not later than
      ten Business Days after the date of such Acquisition, deliver to the
      Lender a Compliance Certificate setting forth the covenant calculations,
      both immediately prior to and after giving effect to such Acquisition.

                  Equivest Note; GSHA Note. The Borrower shall not make any
      prepayments of the Equivest Note, and shall not agree to alter, amend or
      modify the terms of the Equivest Note or the GSHA Note as in effect on the
      date hereof.

                  Dividends. The Borrower shall not, and shall not permit any
      Subsidiary or Affiliate of the Borrower to, directly or indirectly
      declare, pay or make any Dividends except Dividends payable on preferred
      stock and Dividends payable by a Subsidiary to or for the benefit of the
      Borrower.

                  Affiliate Transactions. The Borrower shall not, and shall not
      permit any Subsidiary or Affiliate of the Borrower to, at any time engage
      in any transaction with an Affiliate other than in the ordinary course of
      business and on terms no less advantageous to the Borrower or such
      Subsidiary or Affiliate than would be the case if such transaction had
      been effected with a non-Affiliate.

                  Compliance with ERISA. The Borrower shall not, and shall not
      permit any Subsidiary or Affiliate to, directly or indirectly, or permit
      any member of its Controlled Group to directly or indirectly, (a)
      terminate any Plan, which termination would be likely to result in a
      Material Adverse Effect, (b) permit to exist any ERISA Event, or any other
      event or condition with respect to a Plan which could reasonably be
      expected to have a Material Adverse Effect, (c) make a complete or partial
      withdrawal (within the meaning of Section 4201 of ERISA) from any
      Multiemployer Plan which withdrawal would be to result in any material
      liability to the Borrower or any member of its Controlled Group, (d) enter
      into any new Plan or modify any existing Plan so as to increase its
      obligations thereunder which could reasonably be expected to have a
      Material Adverse Effect, or (e) permit the present value of all benefit
      liabilities, as defined in Title IV of ERISA, under any Plan (other than a
      Multiemployer Plan) of the Borrower or any member of its Controlled Group
      that is subject to Title IV of ERISA (using the actuarial assumptions
      utilized by each such Plan) to exceed the fair market value of Plan assets
      allocable to such benefits by more than $500,000, all determined as of the
      most recent valuation date for such Plan.

                  Interest Coverage Ratio. The Borrower shall not permit the
      Interest Coverage Ratio to be less than 2.10:1:00 at the end of each
      fiscal quarter through and including March 31, 2000 or 2.25:1.00 at the
      end of each fiscal quarter thereafter.

                  Net Worth. The Borrower shall not permit Net Worth, calculated
      at the end of each fiscal quarter, to be less than an amount equal to the
      sum of (a) $59,800,000, plus (b) 75% of cumulative Net Income of the
      Borrower and its Subsidiaries for the period from but not including, July
      1, 1999 through the date of calculation (but excluding from the
      calculation of such cumulative Net Income the effect, if any, of the
      fiscal quarter of the Borrower or any such Subsidiary for which Net Income
      was a negative number), plus (c) 75% of the Net Cash Proceeds received by
      the Borrower from but not including July 1, 1999 through the date of
      calculation as a result of any offering of Equity or pursuant to any
      conversion or exchange of convertible Indebtedness or preferred Capital
      Stock into common Capital Stock of the Borrower, plus (d) an amount equal
      to 100% of any increase in the Borrower's Net Worth, calculated with
      respect to any Person that becomes a Subsidiary of the Borrower or is
      merged into or consolidated with the Borrower or any Subsidiary of the
      Borrower on or after July 1, 1999 or substantially all of the assets of
      which are acquired by the Borrower or any Subsidiary of the Borrower on or
      after July 1, 1999 (in each case determined as of the date that such
      Person becomes a Subsidiary of the Borrower or is merged into or
      consolidated with the Borrower or a Subsidiary of the Borrower or that
      such assets are so acquired).

                  Reserved.

                  Total Debt to Total Capital. The Borrower shall not permit
      Total Debt to Total Capital to exceed 0.85:1.00 at the end of each fiscal
      quarter through and including March 31, 2000 or 0.80:1.00 at the end of
      any fiscal quarter thereafter.

                  Average Quarterly Charge-Off Rate. The Borrower shall not
      permit the Average Quarterly Charge-Off Rate to exceed 3.0% at the end of
      any calendar quarter based on the most recent four calendar quarters.

                  Average Quarterly Default Rate.  The Borrower shall not permit the
      Average Quarterly Default Rate to exceed 4.5% at the end of any calendar quarter.

                  Average Quarterly Delinquency Rate.  The Borrower shall not permit the
      Average Quarterly Delinquency Rate to exceed 7.5% at the end of any calendar
      quarter.

                  Sale and Leaseback. The Borrower shall not, and shall not
      permit any Subsidiary or Affiliate of the Borrower to, enter into any
      arrangement whereby it sells or transfers any of its assets, and
      thereafter rents or leases such assets, except to the extent that the fair
      market value of the asset(s) covered by all such arrangements entered into
      during the any period of four consecutive calendar quarters does not, in
      the aggregate, exceed $2,000,000.

                  Business.  Neither the Borrower nor any Subsidiary or Affiliate of the
      Borrower shall conduct any business other than the business described in Section
      4.1(d) hereof.

                  Fiscal Year. The Borrower shall not, and shall not permit any
      Subsidiary or Affiliate of the Borrower to, change its fiscal year except
      to a fiscal year ending December 31.

                  Amendment of Organizational Documents. The Borrower shall not,
      and shall not permit any Subsidiary or Affiliate of the Borrower to, amend
      its articles of incorporation or bylaws (or similar organizational or
      governance documents) in any manner that could reasonably be expected to
      (a) result in a Material Adverse Effect or (b) impair or affect the Rights
      of the Lender under any Loan Documents or in respect of any Collateral.

                  Reserved.

                  Use of Lender's Name. The Borrower shall not, and shall not
      permit any Subsidiary or Affiliate to, use the name of the Lender or any
      Affiliate of the Lender in connection with any of their respective
      businesses or activities, except in connection with internal business
      matters, administration of the Term Loan and as required in dealings with
      any Tribunal.

      Default

                  Events of Default. Each of the following shall constitute an
      Event of Default, whatever the reason for such event, and whether
      voluntary, involuntary, or effected by operation of law or pursuant to any
      judgment or order of any court or any order, rule or regulation of any
      governmental or non-governmental body:

                  Any representation or warranty made under any Loan Document
      shall prove to have been incorrect or misleading in any material respect
      when made;

                  The Borrower shall fail to pay any (i) principal under the
      Term Note when due or (ii) interest under the Term Note or any fees
      payable hereunder or any other costs, fees, expenses or other amounts
      payable hereunder or under any other Loan Document within two Business
      Days after the date due;

                  The Borrower or any Subsidiary or Affiliate of the Borrower
      shall default in the performance or observance of any agreement or
      covenant contained in Section 2.5(b), Sections 5.1, 5.18 or Article 7;

                  The Borrower or any Subsidiary or Affiliate of the Borrower
      shall default in the performance or observance of any other agreement or
      covenant contained in this Agreement not specifically referred to
      elsewhere in this Section 8.1, and such default shall not be cured within
      a period of fifteen days after the earlier of notice from the Lender
      thereof or actual notice thereof by the Borrower or such Subsidiary or
      Affiliate;

                  There shall occur any default or breach in the performance or
      observance of any agreement or covenant in any of the Loan Documents
      (other than this Agreement) or the Transaction Documents and such default
      shall not be cured within a period of thirty days after the earlier of
      notice from the Lender thereof or actual notice thereof the related
      Obligor;

                  There shall be commenced an involuntary proceeding or an
      involuntary petition shall be filed in a court having competent
      jurisdiction seeking (i) relief in respect of the Borrower or any
      Subsidiary or Affiliate of the Borrower, or a substantial part of the
      property or the assets of the Borrower or Subsidiary or Affiliate of the
      Borrower, under Title 11 of the United States Code, as now constituted or
      hereafter amended, or any other applicable Federal, state or foreign
      bankruptcy law or other similar law, (ii) the appointment of a receiver,
      liquidator, assignee, trustee, custodian, sequestrator or similar official
      of the Borrower or any Subsidiary or Affiliate of the Borrower, or of any
      substantial part of their respective properties, or (iii) the winding-up
      or liquidation of the affairs of the Borrower or any Subsidiary or
      Affiliate of the Borrower, and any such proceeding or petition shall
      continue unstayed and in effect for a period of forty-five days;

                  The Borrower or any Subsidiary or Affiliate of the Borrower
      shall (i) file a petition, answer or consent seeking relief under Title 11
      of the United States Code, as now constituted or hereafter amended, or any
      other applicable Federal, state or foreign bankruptcy law or other similar
      law, (ii) consent to the institution of proceedings thereunder or to the
      filing of any such petition or to the appointment or taking of possession
      of a receiver, liquidator, assignee, trustee, custodian, sequestrator or
      other similar official of the Borrower or any Subsidiary or Affiliate of
      the Borrower or of substantially all of its properties, (iii) file an
      answer admitting the material allegations filed against it in any such
      proceeding, (iv) make a general assignment for the benefit of creditors,
      (v) become unable, admit in writing its ability or fail generally to pay
      its debts as they become due, or (vi) the Borrower or any Subsidiary or
      Affiliate of the Borrower shall take any corporate action in furtherance
      of any of the actions described in this Section 8.1(g);

                  A final judgment or judgments shall be entered by any court
      against the Borrower for the payment of money which exceeds $1,000,000 in
      the aggregate for the Borrower and such Subsidiaries and Affiliates of the
      Borrower, or a warrant of attachment or execution or similar process shall
      be issued or levied against property of the Borrower or any Subsidiary or
      Affiliate of the Borrower which, together with all other such property of
      the Borrower and its Subsidiaries and Affiliates subject to any such
      process, exceeds in value $1,000,000 in the aggregate, and if such
      judgment or award is not insured or, within 30 days after the entry, issue
      or levy thereof, such judgment, warrant or process shall not have been
      paid or discharged or stayed pending appeal, or if, after the expiration
      of any such stay, such judgment, warrant or process shall not have been
      paid or discharged;

                  With respect to any Plan of the Borrower or any member of its
      Controlled Group: (i) the Borrower, any such member, or any other
      party-in-interest or disqualified person (other than the Lender) shall
      engage in transactions that in the aggregate result in a direct or
      indirect liability to the Borrower or any member of its Controlled Group
      under Section 409 or 502 of ERISA or Section 4975 of the Code; (ii) the
      Borrower or any member of its Controlled Group shall incur any accumulated
      funding deficiency, as defined in Section 412 of the Code, or request a
      funding waiver from the Internal Revenue Service for contributions; (iii)
      the Borrower or any member of its Controlled Group shall incur any
      withdrawal liability as a result of a complete or partial withdrawal
      within the meaning of Section 4203 or 4205 of ERISA, or incur any other
      liability with respect to a Plan, unless the amount of such liability has
      been funded within the Plan or pursuant to one or more insurance
      contracts; (iv) a termination of a Multiemployer Plan, as defined in
      Section 1.1 hereof but without regard to the five-year limitation set
      forth therein, shall occur pursuant to Section 4041A of ERISA; (v) the
      Borrower or any member of its Controlled Group shall fail to make a
      required contribution by the due date under Section 412 of the Code or
      Section 302 of ERISA that results in the imposition of a lien under
      Section 412 of the Code or Section 302 of ERISA; (vi) the Borrower, any
      member of its Controlled Group or any Plan sponsor shall notify the PBGC
      of an intent to terminate under Section 4041(c) of ERISA, or the PBGC
      shall institute proceedings to terminate, any Plan (other than a
      Multiemployer Plan) subject to Title IV of ERISA; (vii) a Reportable Event
      shall occur with respect to a Plan (other than a Multiemployer Plan)
      subject to Title IV of ERISA, and within 15 days after the reporting of
      such Reportable Event to the Lender, the Lender shall have notified the
      Borrower in writing that the Lender has made a determination that, such
      Reportable Event will likely result in the termination of such Plan by the
      PBGC or for the appointment by the appropriate United States District
      Court of a trustee to administer such Plan and as a result thereof an
      Event of Default shall have occurred hereunder; (viii) a trustee shall be
      appointed by a court of competent jurisdiction to administer any Plan
      (other than a Multiemployer Plan) or the assets thereof, or (ix) any ERISA
      Event with respect to a Plan (other than a Multiemployer Plan) subject to
      Title IV of ERISA shall have occurred, and 30 days thereafter (A) such
      ERISA Event, other than such event described in clause (f) of the
      definition of ERISA Event herein, (if correctable) shall not have been
      corrected and (B) the then present value of such Plan's benefit
      liabilities, as defined in Title IV of ERISA, shall exceed the then
      current value of assets accumulated in such Plan; provided, however, that
      the events listed in subsections (i) - (ix) above shall constitute Events
      of Default only if the maximum aggregate liability which the Borrower or
      any member of its Controlled Group would incur is likely to result in a
      Material Adverse Effect.

                  The Borrower or any Subsidiary or Affiliate of the Borrower
      shall (i) default in the payment of any Indebtedness or any lease
      obligations in an aggregate amount of $500,000 or more beyond any grace
      period provided with respect thereto, or (ii) any other event or condition
      shall exist under any agreement or instrument under which any such
      Indebtedness or lease obligation is created or evidenced beyond any
      applicable grace period, if the effect of such event or condition is to
      permit or cause the holder of such Indebtedness or lease obligation (or a
      trustee on behalf of any such holder) to (x) cause any such Indebtedness
      or lease obligation to be prepaid or to become due prior to its date of
      maturity or (y) require the Borrower or any Subsidiary or Affiliate of the
      Borrower to purchase, prepay or redeem any such Indebtedness or lease
      obligation;

                  Reserved.

                  Reserved.

                  Any provision of any Loan Document shall for any reason cease
      to be valid and binding on or enforceable against any party to it (other
      than the Lender) other than in accordance with its terms, or any such
      party (other than the Lender) shall so assert in writing;

                  Any Collateral Document shall for any reason (other than
      pursuant to the terms thereof) cease to create a valid and perfected first
      priority Lien in any Collateral subject thereto; or

                  A Change of Control shall occur; or

                  A material adverse change occurs, or is reasonably likely to
      occur, in Borrower's or any Obligor's business condition (financial or
      otherwise), operations, properties or prospects, or ability to repay the
      Term Loan as a result of the "year 2000 problem," (defined as the
      inability of computers, as well as embedded microchips in non-computing
      devices to properly perform date-sensitive functions with respect to
      certain dates prior to and after December 31, 1999), including risks
      resulting from the failure of key customers and suppliers of Borrower or
      any Obligors to address successfully the year 2000 problem.

                  Remedies.  If an Event of Default shall have occurred and shall be
      continuing:

                  With the exception of an Event of Default specified in Section
      8.1(f) or (g) hereof, the Lender may terminate the Commitment and/or
      declare the principal of and interest on the Term Note and all Obligations
      and other amounts owed under the Loan Documents to be forthwith due and
      payable without presentment, demand, protest or notice of any kind, all of
      which are hereby expressly waived, anything in the Loan Documents to the
      contrary notwithstanding.

                  Upon the occurrence of an Event of Default specified in
      Section 8.1(f) or (g) hereof, the principal of and interest on the Term
      Note and all Obligations and other amounts owed under the Loan Documents
      shall thereupon and concurrently therewith become due and payable and the
      Commitment shall forthwith terminate, all without any action by the Lender
      and without presentment, demand, protest or other notice of any kind, all
      of which are expressly waived, anything in the Loan Documents to the
      contrary notwithstanding.

                  The Lender may exercise all of the Rights granted to it under
      the Loan Documents or under Applicable Law.

                  The Rights of the Lender hereunder shall be cumulative, and
      not exclusive.

      Changes in Circumstances

                  Inability to Determine LIBOR Basis. If the Lender determines
      that for any reason adequate and reasonable means do not exist for
      determining LIBOR for any requested Interest Period for any LIBOR Advance,
      or that LIBOR for any requested Interest Period for any LIBOR Advance does
      not adequately and fairly reflect the cost to the Lender of funding such
      LIBOR Advance, the Lender will promptly so notify the Borrower.
      Thereafter, the obligation of the Lender to make or maintain the LIBOR
      Advances hereunder shall be suspended until the Lender revokes such notice
      in writing. Upon receipt of such notice, the Borrower may revoke any
      Borrowing Request/Designation then submitted by it. If the Borrower does
      not revoke such Borrowing Request/Designation, the Lender shall make,
      convert or continue the Term Loan or any portion thereof, as proposed by
      the Borrower in the amount specified in the applicable notice submitted by
      the Borrower, but such Term Loan or any portion thereof shall be made,
      converted or continued as a Reference Rate Advance instead of a LIBOR
      Advance.

                  Illegality. If any change in applicable law, rule or
      regulation, or adoption thereof, or any change in any interpretation or
      administration thereof by any governmental authority, central bank or
      comparable agency charged with the interpretation or administration
      thereof, or compliance by the Lender (or its LIBOR Lending Office) with
      any request or directive (whether or not having the force of law) of any
      such authority, central bank or comparable agency, shall make it unlawful
      or impossible for Lender (or its LIBOR Lending Office) to make, maintain
      or fund its LIBOR Advances, the Lender shall so notify the Borrower. Upon
      receipt of such notice, notwithstanding anything contained in Article 2
      hereof, the Borrower shall convert each outstanding LIBOR Advance to a
      Reference Rate Advance, on either (a) the last day of the Interest Period
      applicable to such LIBOR Advance, if the Lender may lawfully continue to
      maintain and fund such LIBOR Advance to such day, or (b) immediately, if
      the Lender may not lawfully continue to fund and maintain such LIBOR
      Advance to such day or if the Borrower so elects.

                  Increased Costs.

                  If after the Agreement Date any change in or adoption of any
      law, rule or regulation, or any change in the interpretation or
      administration thereof by any governmental authority, central bank or
      comparable agency charged with the interpretation or administration
      thereof or compliance by the Lender (or its LIBOR Lending Office) with any
      request or directive (whether or not having the force of law) of any such
      authority, central bank or compatible agency:

                  shall subject the Lender (or its LIBOR Lending Office) to any
      Tax (net of any tax benefit engendered thereby) with respect to its LIBOR
      Advances or its obligation to make such Advances, or shall change the
      basis of taxation of payments to the Lender (or to its LIBOR Lending
      Office) of the principal of or interest on its LIBOR Advances or in
      respect of any other amounts due under this Agreement, as the case may be,
      or its obligation to make such Advances (except for changes in the rate of
      tax on the overall net income, net worth or capital of the Lender and
      franchise taxes, doing business taxes or minimum taxes imposed upon the
      Lender); or

                  shall impose, modify or deem applicable any reserve
      (including, without limitation, any imposed by the Board of Governors of
      the Federal Reserve System), special deposit or similar requirement
      against assets of, deposits with or for the account of, or credit extended
      by, the Lender's LIBOR Lending Office or shall impose on the Lender (or
      its LIBOR Lending Office) or on the London interbank market any other
      condition affecting its LIBOR Advances or its obligation to make such
      Advances (but excluding any reserves or deposits that are included in the
      calculation of LIBOR Basis);

            and the result of any of the foregoing is to increase the cost to
      the Lender (or its LIBOR Lending Office) of making or maintaining any
      LIBOR Advances, or to reduce the amount of any sum received or receivable
      by the Lender (or its LIBOR Lending Office) with respect thereto, by an
      amount deemed by the Lender to be material, then, within five Business
      Days after demand by the Lender, the Borrower agrees to pay to the Lender
      such additional amount as will compensate the Lender for such increased
      costs or reduced amounts, subject to Section 10.9 hereof.

                  A certificate of the Lender claiming compensation under this
      Section and setting forth the additional amounts to be paid to it
      hereunder shall be conclusive absent manifest or demonstrable error. In
      determining such amount, the Lender may use any reasonable averaging and
      attribution methods.

                  Effect On Reference Rate Advances. If notice has been given
      pursuant to Section 9.1, 9.2 or 9.3 hereof suspending the obligation of
      the Lender to make LIBOR Advances, or requiring LIBOR Advances of the
      Lender to be repaid or prepaid, then, unless and until the Lender notifies
      the Borrower that the circumstances giving rise to such repayment no
      longer apply all drawings under the Term Loan or continuations or
      conversions which would otherwise be made by the Lender as LIBOR Advances
      shall be made instead as Reference Rate Advances.

                  Capital Adequacy. If after the Agreement Date, (a) the
      introduction of or any change in or in the interpretation of any law, rule
      or regulation or (b) compliance by the Lender with any law, rule or
      regulation or any guideline or request from any central bank or other
      governmental authority (whether or not having the force of law) adopted or
      promulgated after the Agreement Date affects or would affect the amount of
      capital required or expected to be maintained by the Lender or any
      corporation controlling the Lender, and the Lender determines that the
      amount of such capital is increased by or based upon the existence of the
      Lender's Commitment or the Term Loan hereunder and other commitments or
      advances of the Lender of this type, then, within five Business Days after
      demand by the Lender, subject to Section 10.9, the Borrower shall
      immediately pay to the Lender, from time to time as specified by the
      Lender, additional amounts sufficient to compensate the Lender with
      respect to such circumstances. A certificate as to any additional amounts
      payable to the Lender under this Section 9.5 submitted to the Borrower by
      such Lender shall be conclusive absent manifest or demonstrable error. In
      determining such amount, the Lender or a corporation controlling the
      Lender may use any reasonable averaging and attribution methods.

      Miscellaneous

                  Notices.

                  All notices and other communications under this Agreement
      shall be in writing (except in those cases where giving notice by
      telephone is expressly permitted) and shall be deemed to have been given
      on the date personally delivered or sent by telecopy (answerback received)
      or by facsimile transmission, or three days after deposit in the mail,
      designated as certified mail, return receipt requested, postage-prepaid,
      or one day after being entrusted to a reputable commercial overnight
      delivery service, addressed to the party to which such notice is directed
      at its address determined as provided in this Section. All notices and
      other communications under this Agreement shall be given to the parties
      hereto at the respective address(es) set forth in Schedule 1 attached
      hereto.

                  Any party hereto may change the address to which notices shall
      be directed by giving ten days' written notice of such change to the other
      parties.

                  Expenses.  The Borrower shall promptly pay:

                  all reasonable out-of-pocket expenses of the Lender in
      connection with the preparation, negotiation, execution and delivery of
      this Agreement and the other Loan Documents, the transactions contemplated
      hereunder and thereunder, and the making of Advances hereunder, including
      without limitation the reasonable fees and disbursements of Special
      Counsel;

                  all reasonable out-of-pocket expenses and reasonable
      attorneys' fees of the Lender in connection with the administration of the
      transactions contemplated in this Agreement and the other Loan Documents
      and the preparation, negotiation, execution and delivery of any waiver,
      amendment or consent by the Lender relating to this Agreement or the other
      Loan Documents; and

                  all reasonable costs, out-of-pocket expenses and reasonable
      attorneys' fees of the Lender incurred for enforcement, collection,
      restructuring, refinancing and "work-out", or otherwise incurred in
      obtaining performance under the Loan Documents, which in each case shall
      include without limitation fees and expenses of consultants and counsel
      for the Lender, and administrative fees of the Lender.

                  Waivers. The rights and remedies of the Lender under this
      Agreement and the other Loan Documents shall be cumulative and not
      exclusive of any rights or remedies which they would otherwise have. No
      failure or delay by the Lender in exercising any right shall operate as a
      waiver of such right. The Lender expressly reserves the right to require
      strict compliance with the terms of this Agreement in connection with any
      funding of the Term Loan or any continuation or conversion of any LIBOR
      Advance. In the event that the Lender decides to fund the Term Loan or any
      continuation or conversion of any LIBOR Advance at a time when the
      Borrower is not in strict compliance with the terms of this Agreement,
      such decision by the Lender shall not be deemed to constitute an
      undertaking by the Lender to fund any further funding of the Term Loan or
      any continuation or conversion of any LIBOR Advance or preclude the Lender
      from exercising any rights available under the Loan Documents or at law or
      equity. Any waiver or indulgence granted by the Lender shall not
      constitute a modification of this Agreement, except to the extent
      expressly provided in such waiver or indulgence, or constitute a course of
      dealing by the Lender at variance with the terms of the Agreement such as
      to require further notice by the Lender of the Lender's intent to require
      strict adherence to the terms of the Agreement in the future. Any such
      actions shall not in any way affect the ability of the Lender in its
      discretion, to exercise any rights available to it under this Agreement or
      under any other agreement, whether or not the Lender is a party thereto,
      relating to the Borrower.

                  Calculation by the Lender Conclusive and Binding. Any
      mathematical calculation required or expressly permitted to be made by the
      Lender under this Agreement shall be made in its reasonable judgment and
      in good faith, and shall be controlling, absent manifest error.

                  Set-Off. In addition to any rights now or hereafter granted
      under Applicable Law and not by way of limitation of any such rights, upon
      the occurrence and during the continuation of an Event of Default, the
      Lender and any subsequent holder or assignee of the Term Note is hereby
      authorized by the Borrower at any time or from time to time, without
      notice to the Borrower or any other Person, any such notice being hereby
      expressly waived, to set-off, appropriate and apply any deposits (general
      or special, (except trust and escrow accounts), time or demand, including
      without limitation Indebtedness evidenced by certificates of deposit, in
      each case whether matured or unmatured) and any other Indebtedness at any
      time held or owing by the Lender or holder to or for the credit or the
      account of the Borrower, against and on account of the Obligations and
      other liabilities of the Borrower to the Lender or holder, irrespective of
      whether or not (a) the Lender or holder shall have made any demand
      hereunder, or (b) the Lender or holder shall have declared the principal
      of and interest on the Term Note and other amounts due hereunder to be due
      and payable as permitted by Section 8.2. Any sums obtained by the Lender
      or by any assignee or subsequent holder of the Term Note shall be subject
      to pro rata treatment of all Obligations and other liabilities hereunder.

                  Assignment. The Borrower may not assign or transfer any of its
      rights or obligations hereunder or under the Loan Documents without the
      prior written consent of the Lender. The Lender shall be entitled to
      assign or grant a participation in its interest in this Agreement, the
      Term Note and the other Loan Documents without the consent of the
      Borrower.

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

                  Severability. Any provision of this Agreement which is for any
      reason prohibited or found or held invalid or unenforceable by any court
      or governmental agency shall be ineffective to the extent of such
      prohibition or invalidity or unenforceability without invalidating the
      remaining provisions hereof in such jurisdiction or affecting the validity
      or enforceability of such provision in any other jurisdiction.

                  Interest and Charges. It is not the intention of any parties
      to this Agreement to make an agreement in violation of the laws of any
      applicable jurisdiction relating to usury. Regardless of any provision in
      any Loan Documents, the Lender shall not be entitled to receive, collect
      or apply, as interest on the Obligations, any amount in excess of the
      Highest Lawful Amount. If the Lender ever receives, collects or applies,
      as interest, any such excess, such amount which would excessive interest
      shall be deemed a partial repayment of principal and treated hereunder as
      such; and if principal is paid in full, any remaining excess shall be paid
      to the Borrower. In determining whether or not the interest paid or
      payable, under any specific contingency, exceeds the Highest Lawful
      Amount, the Borrower and the Lender shall, to the maximum extent permitted
      under Applicable Law, (a) characterize any nonprincipal payment as an
      expense, fee or premium rather than as interest, (b) exclude voluntary
      prepayments and the effect thereof, and (c) amortize, prorate, allocate
      and spread in equal parts, the total amount of interest throughout the
      entire contemplated term of the Obligations so that the interest rate is
      uniform throughout the entire term of the Obligations; provided, however,
      that if the Obligations are paid and performed in full prior to the end of
      the full contemplated term thereof, and the interest received for the
      actual period of existence thereof exceeds the Highest Lawful Amount, the
      Lender shall refund to the Borrower the amount of such excess or credit
      the amount of such excess against the total principal amount of the
      Obligations owing, and, in such event, the Lender shall not be subject to
      any penalties provided by any laws for contracting for, charging or
      receiving interest in excess of the Highest Lawful Amount or the Highest
      Lawful Rate. This Section shall control every other provision of all
      agreements pertaining to the transactions contemplated by or contained in
      the Loan Documents.

                  Headings.  Headings used in this Agreement are for convenience only and
      shall not be used in connection with the interpretation of any provision hereof.

                  Amendment and Waiver. The provisions of this Agreement may not
      be amended, modified or waived except by the written agreement of the
      Borrower and the Lender. Neither this Agreement nor any term hereof may be
      amended orally, nor may any provision hereof be waived orally but only by
      an instrument in writing signed by the Lender and, in the case of an
      amendment, by the Borrower.

                  Exception to Covenants. Neither the Borrower nor any
      Subsidiary or Affiliate of the Borrower shall be deemed to be permitted to
      take any action or fail to take any action which is permitted as an
      exception to any of the covenants contained herein or which is within the
      permissible limits of any of the covenants contained herein if such action
      or omission would result in the breach of any other covenant contained
      herein.

                  [Reserved].

                  [Reserved].

                  GOVERNING LAW. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS
      SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE
      STATE OF NEW YORK (WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAWS)
      WITHOUT EXCLUDING ANY OTHER JURISDICTION, THE BORROWER, NEWCO I, NEWCO II
      AND THE LENDER EACH AGREES THAT THE STATE AND FEDERAL COURTS LOCATED IN
      NEW YORK, NEW YORK, SHALL HAVE JURISDICTION OVER PROCEEDINGS IN CONNECTION
      WITH THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS AND HEREBY SUBMITS WITH
      RESPECT TO ITSELF AND ITS PROPERTY TO THE JURISDICTION OF ANY SUCH COURT
      FOR THE PURPOSE OF ANY SUIT, ACTION, PROCEEDING OR JUDGMENT RELATING TO OR
      ARISING OUT OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT.

                  WAIVER OF JURY TRIAL. EACH OF THE BORROWER, NEWCO I, NEWCO II
      AND THE LENDER HEREBY KNOWINGLY VOLUNTARILY, IRREVOCABLE AND INTENTIONALLY
      WAIVES, TO THE MAXIMUM EXTENT PERMITTED BY LAW, ALL RIGHT TO TRIAL BY JURY
      IN ANY ACTION, PROCEEDING OR CLAIM ARISING OUT OF OR RELATED TO ANY OF THE
      LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED THEREBY. THIS PROVISION IS
      A MATERIAL INDUCEMENT TO THE LENDER ENTERING INTO THIS AGREEMENT AND
      MAKING THE TERM LOAN HEREUNDER.

                  ENTIRE AGREEMENT. THIS WRITTEN AGREEMENT, TOGETHER WITH THE
      OTHER LOAN DOCUMENTS, REPRESENTS THE FINAL AGREEMENTS BETWEEN THE PARTIES
      REGARDING THE SUBJECT MATTER HEREIN AND THEREIN AND MAY NOT BE
      CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
      AGREEMENTS OF THE PARTIES HERETO. THERE ARE NO UNWRITTEN ORAL AGREEMENTS
      BETWEEN THE PARTIES.

            REMAINDER OF PAGE LEFT INTENTIONALLY BLANK

<PAGE>

            IN WITNESS WHEREOF, this Credit Agreement is executed as of the date
      first set forth above.

BORROWER:                           EQUIVEST FINANCE, INC.

                                    By:
                                       Name:
                                       Title:

NEWCO I:                            PEPPERTREE ACQUISITION CORP.

                                    By:
                                       Name:
                                       Title:

NEWCO II:                           PEPPERTREE ACQUISITION II CORP.

                                    By:
                                       Name:
                                       Title:

LENDER:                             BANK OF AMERICA, N.A.

                                    By:
                                 Robert N. Allen
                                 Vice President

<PAGE>

Exhibit 10.23
                                   SCHEDULE 1

                  LIBOR LENDING OFFICES, ADDRESSES FOR NOTICES

(i)   BORROWER:

      Equivest Finance, Inc.
      2 Clinton Square
      Syracuse, NY  13202
      Attention:   Gerald L. Klaben, Jr.

(ii)  BANK OF AMERICA, N.A., as a Lender:

      Credit Notices and Communications:

      Bank of America, N.A.
      555 South Flower Street, 6th floor
      Los Angeles, CA 90071-2385
      Attention:   Robert N. Allen

      LIBOR Lending Office:

      Bank of America, N.A.
      5 Park Plaza, Suite 500
      Irvine, CA 92614-8525
      Attention:  Phyllis Sakamoto

      Administrative, Operational, Funding, Conversion and Other Notices and
Communications

      Bank of America N.A.
      5 Park Plaza, Suite 500
      Irvine, CA  92614-8525
      Attention:  Phyllis Sakamoto

<PAGE>

                                   SCHEDULE 2

                                REQUIRED CONSENTS

<PAGE>

                                   SCHEDULE 3

                               EXISTING LITIGATION
                            AND MATERIAL LIABILITIES

<PAGE>

                                   SCHEDULE 4

                           SUBSIDIARIES AND AFFILIATES

                          State of
                        Incorporation        Percentage
        Name           or Organization      of Ownership            Owner

<PAGE>

                                   SCHEDULE 5

                              EXISTING INVESTMENTS

<PAGE>

                                   SCHEDULE 6

                              EXISTING INDEBTEDNESS
                              Secured and Unsecured

Amount of Debt       Collateral          Lender              Maturity Date

<PAGE>

                                   SCHEDULE 7

                      AUTHORIZATION, QUALIFICATION AND GOOD STANDING

<PAGE>

                                   SCHEDULE 8

                              ENVIRONMENTAL MATTERS

<PAGE>

                                   SCHEDULE 9

                                 LABOR RELATIONS

<PAGE>

                                   SCHEDULE 10

                                   GUARANTORS

Peppertree Resorts, Ltd.
Peppertree Acquisition II Corp.
Peppertree Resorts Vacation Club
Peppertree Resort Villas, Inc.
Peppertree Resorts Management, Inc.
Peppertree Realty Inc.
Resort Funding, Inc.
Eastern Resorts Corporation
Long Wharf Marina Restaurant, Inc.
Bluebeard's Castle, Inc.
Castle Acquisition, Inc.
Avenue Plaza LLC
Ocean City Coconut Malorie Resort, Inc.
St. Augustine Resort Development Group, Inc.
EFI D.C. Acquisition, Inc.
EFI St. Thomas Acquisition, Inc.
EFI Louisiana Acquisition, Inc.
EFI Maryland Acquisition, Inc.
EFI Florida Acquisition, Inc.

<PAGE>

                                   SCHEDULE 11

                              ASSUMED INDEBTEDNESS

<PAGE>

                                   SCHEDULE 12

                               MATERIAL CONTRACTS

<PAGE>

                                   SCHEDULE 13

                                    INSURANCE

<PAGE>

                                   SCHEDULE 14

                                 LICENSES, PERMITS, ETC.

<PAGE>

                                   SCHEDULE 15

                              INDEBTEDNESS TO OFFICERS, ETC.

<PAGE>

                                   SCHEDULE 16

                                  REAL PROPERTY

<PAGE>

                                   SCHEDULE 17

                                OPERATING CONDITION; ETC.
</TABLE>

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