Document:

Exhibit 10.196

Execution Copy 

BXG RECEIVABLES NOTE TRUST 2008-A,

as Issuer

BLUEGREEN CORPORATION,

as Servicer

VACATION TRUST, INC.,

as Club Trustee

CONCORD SERVICING CORPORATION,

as Backup Servicer

and

U.S. BANK NATIONAL ASSOCIATION,

as Indenture Trustee, Paying Agent and Custodian

INDENTURE

Dated as of March 15, 2008

TABLE OF CONTENTS

	
 

	
 

	
 

	
 

	
 

	
Page

	
 

	
 

	

	
 

	
 

	
 

	
ARTICLE I.

	
DEFINITIONS
  AND OTHER PROVISIONS OF GENERAL APPLICATION

	
3

	
 

	
 

	
 

	
SECTION
1.1.

	
General
  Definitions and Usage of Terms

	
3

	
 

	
 

	
 

	
SECTION
1.2.

	
Compliance
  Certificates and Opinions

	
3

	
 

	
 

	
 

	
SECTION
1.3.

	
Form of
  Documents Delivered to Indenture Trustee

	
3

	
 

	
 

	
 

	
SECTION
1.4.

	
Acts of
  Noteholders, etc.

	
5

	
 

	
 

	
 

	
SECTION
1.5.

	
Notice to
  Noteholders; Waiver

	
5

	
 

	
 

	
 

	
SECTION
1.6.

	
Effect of
  Headings and Table of Contents

	
6

	
 

	
 

	
 

	
SECTION
1.7.

	
Successors
  and Assigns

	
6

	
 

	
 

	
 

	
SECTION
1.8.

	
GOVERNING
  LAW

	
6

	
 

	
 

	
 

	
SECTION
1.9.

	
Legal
  Holidays

	
6

	
 

	
 

	
 

	
SECTION
1.10.

	
Execution in
  Counterparts

	
7

	
 

	
 

	
 

	
SECTION 1.11.

	
Inspection

	
7

	
 

	
 

	
 

	
SECTION 1.12.

	
Survival of
  Representations and Warranties

	
7

	
 

	
 

	
 

	
 

	
 

	
 

	
ARTICLE II.

	
THE NOTES

	
7

	
 

	
 

	
 

	
SECTION
2.1.

	
General
  Provisions

	
7

	
 

	
 

	
 

	
SECTION
2.2.

	
Global Notes

	
8

	
 

	
 

	
 

	
SECTION
2.3.

	
Definitive
  Notes

	
9

	
 

	
 

	
 

	
SECTION
2.4.

	
Registration,
  Transfer and Exchange of Notes

	
9

	
 

	
 

	
 

	
SECTION
2.5.

	
Mutilated,
  Destroyed, Lost and Stolen Notes

	
11

	
 

	
 

	
 

	
SECTION
2.6.

	
Payment of
  Interest and Principal; Rights Preserved

	
12

	
 

	
 

	
 

	
SECTION
2.7.

	
Persons
  Deemed Owners

	
12

i

	
 

	
 

	
 

	
SECTION
2.8.

	
Cancellation

	
12

	
 

	
 

	
 

	
SECTION
2.9.

	
Noteholder
  Lists

	
13

	
 

	
 

	
 

	
SECTION 2.10.

	
Treasury
  Notes

	
13

	
 

	
 

	
 

	
SECTION 2.11.

	
Notice to
  Depository

	
13

	
 

	
 

	
 

	
SECTION 2.12.

	
Confidentiality

	
13

	
 

	
 

	
 

	
 

	
 

	
 

	
ARTICLE III.

	
ACCOUNTS;
  COLLECTION AND APPLICATION OF MONEYS; REPORTS

	
14

	
 

	
 

	
 

	
SECTION
3.1.

	
Trust
  Accounts; Investments by Indenture Trustee

	
14

	
 

	
 

	
 

	
SECTION
3.2.

	
Establishment
  and Administration of the Trust Accounts

	
15

	
 

	
 

	
 

	
SECTION
3.3.

	
Reserved

	
19

	
 

	
 

	
 

	
SECTION
3.4.

	
Distributions

	
19

	
 

	
 

	
 

	
SECTION
3.5.

	
Reports to
  Noteholders

	
21

	
 

	
 

	
 

	
SECTION
3.6.

	
Note Balance
  Write-Down Amounts

	
22

	
 

	
 

	
 

	
SECTION
3.7.

	
Withholding
  Taxes

	
22

	
 

	
 

	
 

	
 

	
 

	
 

	
ARTICLE IV.

	
THE TRUST
  ESTATE

	
22

	
 

	
 

	
 

	
SECTION
4.1.

	
Acceptance
  by Indenture Trustee

	
22

	
 

	
 

	
 

	
SECTION
4.2.

	
Subsequent
  Timeshare Loans

	
23

	
 

	
 

	
 

	
SECTION
4.3.

	
Criteria for
  Subsequent Timeshare Loans

	
24

	
 

	
 

	
 

	
SECTION
4.4.

	
Grant of
  Security Interest; Tax Treatment

	
24

	
 

	
 

	
 

	
SECTION
4.5.

	
Further
  Action Evidencing Assignments

	
25

	
 

	
 

	
 

	
SECTION
4.6.

	
Substitution
  and Repurchase of Timeshare Loans

	
26

	
 

	
 

	
 

	
SECTION
4.7.

	
Release of
  Lien

	
27

	
 

	
 

	
 

	
SECTION
4.8.

	
Appointment
  of Custodian and Paying Agent

	
28

	
 

	
 

	
 

	
SECTION
4.9.

	
Sale of
  Timeshare Loans

	
28

ii

	
 

	
 

	
 

	
ARTICLE V.

	
SERVICING OF
  TIMESHARE LOANS

	
29

	
 

	
 

	
 

	
SECTION
5.1.

	
Appointment
  of Servicer and Backup Servicer; Servicing Standard

	
29

	
 

	
 

	
 

	
SECTION
5.2.

	
Payments on
  the Timeshare Loans

	
29

	
 

	
 

	
 

	
SECTION
5.3.

	
Duties and
  Responsibilities of the Servicer

	
30

	
 

	
 

	
 

	
SECTION
5.4.

	
Servicer
  Events of Default

	
33

	
 

	
 

	
 

	
SECTION
5.5.

	
Accountings;
  Statements and Reports

	
37

	
 

	
 

	
 

	
SECTION
5.6.

	
Records

	
38

	
 

	
 

	
 

	
SECTION
5.7.

	
Fidelity
  Bond and Errors and Omissions Insurance

	
38

	
 

	
 

	
 

	
SECTION
5.8.

	
Merger or
  Consolidation of the Servicer

	
39

	
 

	
 

	
 

	
SECTION
5.9.

	
Sub-Servicing

	
39

	
 

	
 

	
 

	
SECTION 5.10.

	
Servicer
  Resignation

	
40

	
 

	
 

	
 

	
SECTION
5.11.

	
Fees and
  Expenses

	
40

	
 

	
 

	
 

	
SECTION 5.12.

	
Access to
  Certain Documentation

	
40

	
 

	
 

	
 

	
SECTION 5.13.

	
No Offset

	
41

	
 

	
 

	
 

	
SECTION 5.14.

	
Account
  Statements

	
41

	
 

	
 

	
 

	
SECTION 5.15.

	
Indemnification;
  Third Party Claim

	
41

	
 

	
 

	
 

	
SECTION 5.16.

	
Backup
  Servicer

	
41

	
 

	
 

	
 

	
SECTION 5.17.

	
Aruba
  Notices

	
42

	
 

	
 

	
 

	
SECTION 5.18.

	
Recordation

	
43

	
 

	
 

	
 

	
 

	
 

	
 

	
ARTICLE VI.

	
EVENTS OF
  DEFAULT; REMEDIES

	
43

	
 

	
 

	
 

	
SECTION
6.1.

	
Events of
  Default

	
43

	
 

	
 

	
 

	
SECTION
6.2.

	
Acceleration
  of Maturity; Rescission and Annulment

	
44

	
 

	
 

	
 

	
SECTION
6.3.

	
Remedies

	
46

	
 

	
 

	
 

	
SECTION
6.4.

	
Indenture
  Trustee May File Proofs of Claim

	
47

iii

	
 

	
 

	
 

	
SECTION
6.5.

	
Indenture
  Trustee May Enforce Claims Without Possession of Notes

	
48

	
 

	
 

	
 

	
SECTION
6.6.

	
Application
  of Money Collected

	
48

	
 

	
 

	
 

	
SECTION
6.7.

	
Limitation
  on Suits

	
52

	
 

	
 

	
 

	
SECTION
6.8.

	
Unconditional
  Right of Noteholders to Receive Principal and Interest

	
53

	
 

	
 

	
 

	
SECTION
6.9.

	
Restoration
  of Rights and Remedies

	
53

	
 

	
 

	
 

	
SECTION
6.10.

	
Rights and
  Remedies Cumulative

	
53

	
 

	
 

	
 

	
SECTION
6.11.

	
Delay or
  Omission Not Waiver

	
53

	
 

	
 

	
 

	
SECTION 6.12.

	
Control by
  Noteholders

	
53

	
 

	
 

	
 

	
SECTION
6.13.

	
Waiver of
  Events of Default

	
54

	
 

	
 

	
 

	
SECTION 6.14.

	
Undertaking
  for Costs

	
54

	
 

	
 

	
 

	
SECTION 6.15.

	
Waiver of
  Stay or Extension Laws

	
55

	
 

	
 

	
 

	
SECTION 6.16.

	
Sale of
  Trust Estate

	
55

	
 

	
 

	
 

	
SECTION 6.17.

	
Action on
  Notes

	
56

	
 

	
 

	
 

	
SECTION 6.18.

	
Performance
  and Enforcement of Certain Obligations

	
56

	
 

	
 

	
 

	
 

	
 

	
 

	
ARTICLE VII.

	
THE
  INDENTURE TRUSTEE

	
56

	
 

	
 

	
 

	
SECTION
7.1.

	
Certain
  Duties

	
56

	
 

	
 

	
 

	
SECTION
7.2.

	
Notice of
  Events of Default

	
58

	
 

	
 

	
 

	
SECTION
7.3.

	
Certain
  Matters Affecting the Indenture Trustee

	
58

	
 

	
 

	
 

	
SECTION
7.4.

	
Indenture
  Trustee Not Liable for Notes or Timeshare Loans

	
59

	
 

	
 

	
 

	
SECTION
7.5.

	
Indenture
  Trustee May Own Notes

	
59

	
 

	
 

	
 

	
SECTION
7.6.

	
Indenture
  Trustee’s Fees and Expenses

	
60

	
 

	
 

	
 

	
SECTION
7.7.

	
Eligibility
  Requirements for Indenture Trustee

	
60

	
 

	
 

	
 

	
SECTION
7.8.

	
Resignation
  or Removal of Indenture Trustee

	
60

	
 

	
 

	
 

	
SECTION
7.9.

	
Successor Indenture
  Trustee

	
61

iv

	
 

	
 

	
 

	
SECTION 7.10.

	
Merger or
  Consolidation of Indenture Trustee

	
62

	
 

	
 

	
 

	
SECTION 7.11.

	
Appointment
  of Co-Indenture Trustee or Separate Indenture Trustee

	
62

	
 

	
 

	
 

	
SECTION 7.12.

	
Paying Agent
  and Note Registrar Rights

	
64

	
 

	
 

	
 

	
SECTION 7.13.

	
Authorization

	
64

	
 

	
 

	
 

	
SECTION
7.14.

	
Maintenance
  of Office or Agency

	
64

	
 

	
 

	
 

	
 

	
 

	
 

	
ARTICLE
  VIII.

	
COVENANTS OF
  THE ISSUER

	
65

	
 

	
 

	
 

	
SECTION
8.1.

	
Payment of
  Principal, Interest and Other Amounts

	
65

	
 

	
 

	
 

	
SECTION
8.2.

	
Eligible
  Timeshare Loans

	
66

	
 

	
 

	
 

	
SECTION
8.3.

	
Money for
  Payments to Noteholders to Be Held in Trust

	
65

	
 

	
 

	
 

	
SECTION
8.4.

	
Existence;
  Merger; Consolidation, etc.

	
66

	
 

	
 

	
 

	
SECTION
8.5.

	
Protection
  of Trust Estate; Further Assurances

	
67

	
 

	
 

	
 

	
SECTION
8.6.

	
Additional
  Covenants

	
69

	
 

	
 

	
 

	
SECTION
8.7.

	
Taxes

	
71

	
 

	
 

	
 

	
SECTION
8.8.

	
Restricted
  Payments

	
71

	
 

	
 

	
 

	
SECTION
8.9.

	
Treatment of
  Notes as Debt for Tax Purposes

	
71

	
 

	
 

	
 

	
SECTION
8.10.

	
Further
  Instruments and Acts

	
71

	
 

	
 

	
 

	
 

	
 

	
 

	
ARTICLE IX.

	
SUPPLEMENTAL
  INDENTURES

	
71

	
 

	
 

	
 

	
SECTION
9.1.

	
Supplemental
  Indentures

	
71

	
 

	
 

	
 

	
SECTION
9.2.

	
Supplemental
  Indentures with Consent of Noteholders

	
72

	
 

	
 

	
 

	
SECTION
9.3.

	
Execution of
  Supplemental Indentures

	
73

	
 

	
 

	
 

	
SECTION
9.4.

	
Effect of
  Supplemental Indentures

	
73

	
 

	
 

	
 

	
SECTION
9.5.

	
Reference in
  Notes to Supplemental Indentures

	
73

v

	
 

	
 

	
 

	
ARTICLE X. 

	
REDEMPTION
  OF NOTES

	
74

	
 

	
 

	
 

	
SECTION
10.1.

	
Optional
  Redemption; Election to Redeem

	
74

	
 

	
 

	
 

	
SECTION 10.2.

	
Notice to
  Indenture Trustee

	
74

	
 

	
 

	
 

	
SECTION
10.3.

	
Notice of
  Redemption by the Servicer

	
74

	
 

	
 

	
 

	
SECTION 10.4.

	
Deposit of
  Redemption Price

	
74

	
 

	
 

	
 

	
SECTION
10.5.

	
Notes
  Payable on Redemption Date

	
74

	
 

	
 

	
 

	
 

	
 

	
 

	
ARTICLE XI. 

	
SATISFACTION
  AND DISCHARGE

	
75

	
 

	
 

	
 

	
SECTION 11.1.

	
Satisfaction
  and Discharge of Indenture

	
75

	
 

	
 

	
 

	
SECTION 11.2.

	
Application
  of Trust Money; Repayment of Money Held by Paying Agent

	
76

	
 

	
 

	
 

	
SECTION 11.3.

	
Trust
  Termination Date

	
76

	
 

	
 

	
 

	
 

	
 

	
 

	
ARTICLE XII.
  

	
REPRESENTATIONS
  AND WARRANTIES AND COVENANTS

	
77

	
 

	
 

	
 

	
SECTION 12.1.

	
Representations
  and Warranties of the Issuer

	
77

	
 

	
 

	
 

	
SECTION 12.2.

	
Representations
  and Warranties of the Servicer

	
78

	
 

	
 

	
 

	
SECTION 12.3.

	
Representations
  and Warranties of the Indenture Trustee

	
81

	
 

	
 

	
 

	
SECTION
12.4.

	
Multiple
  Roles

	
82

	
 

	
 

	
 

	
SECTION 12.5.

	
[Reserved]

	
82

	
 

	
 

	
 

	
SECTION 12.6.

	
Covenants of
  the Club Trustee

	
82

	
 

	
 

	
 

	
SECTION 12.7.

	
Representations
  and Warranties of the Backup Servicer

	
84

	
 

	
 

	
 

	
 

	
 

	
 

	
ARTICLE
  XIII. 

	
MISCELLANEOUS

	
87

	
 

	
 

	
 

	
SECTION 13.1.

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

	
87

	
 

	
 

	
 

	
SECTION
13.2.

	
Statements
  Required in Certificate or Opinion

	
87

	
 

	
 

	
 

	
SECTION 13.3.

	
Notices

	
88

vi

	
 

	
 

	
 

	
SECTION 13.4.

	
No
  Proceedings

	
90

	
 

	
 

	
 

	
SECTION 13.5.

	
Limitation
  of Liability of Owner Trustee

	
90

	
 

	
 

	
Exhibit A

	
Form of
  Notes

	
 

	
 

	
Exhibit B

	
Form of
  Investor Representation Letter

	
 

	
 

	
Exhibit C

	
Credit
  Policy

	
 

	
 

	
Exhibit D

	
Form of
  Monthly Servicer Report

	
 

	
 

	
Exhibit E

	
Servicing
  Officer’s Certificate

	
 

	
 

	
Exhibit F

	
Form of
  Investor Certification

	
 

	
 

	
Exhibit G

	
Form of ROAP
  Waiver Letter

	
 

	
 

	
Exhibit H

	
Form of
  Aruba Notice

	
 

	
 

	
Exhibit I

	
Resort
  Ratings

	
 

	
 

	
Exhibit J

	
Form of
  Subsequent Transfer Notice

	
 

	
 

	
Exhibit K

	
Collection
  Policy

	
 

	
 

	
Annex A

	
Standard
  Definitions

	
 

	
 

	
Schedule I

	
Schedule of
  Timeshare Loans

	
 

	
 

	
Schedule II

	
Litigation
  Schedule

vii

INDENTURE

                    This
INDENTURE, dated as of March 15, 2008 (this “Indenture”),
is among BXG RECEIVABLES NOTE TRUST 2008-A, a statutory trust formed under the
laws of the State of Delaware, as issuer (the “Issuer”), BLUEGREEN
CORPORATION (“Bluegreen”), a
Massachusetts corporation, in its capacity as servicer (the “Servicer”),
VACATION TRUST, INC., a Florida corporation, as trustee under the Club Trust
Agreement (the “Club Trustee”),
CONCORD SERVICING CORPORATION, an Arizona corporation, as backup servicer (the
“Backup Servicer”) and U.S. BANK
NATIONAL ASSOCIATION, a national banking association, as indenture trustee (the
“Indenture
Trustee”), paying agent (the “Paying
Agent”) and as custodian (the “Custodian”).

RECITALS OF THE ISSUER

                    WHEREAS,
the Issuer has duly authorized the execution and delivery of this Indenture to
provide for the issuance of its $17,794,000 5.885% Timeshare Loan-Backed Notes,
Series 2008-A, Class A (the “Class A Notes”), $9,566,000 6.880%
Timeshare Loan-Backed Notes, Series 2008-A, Class B (the “Class B Notes”), $14,126,000
7.870% Timeshare Loan-Backed Notes, Series 2008-A, Class C (the “Class C
Notes”), $4,354,000 9.100% Timeshare Loan-Backed Notes, Series
2008-A, Class D, (the “Class D Notes”), $5,691,000 10.085%
Timeshare Loan-Backed Notes, Series 2008-A, Class E (the “Class E Notes”), $5,383,000
10.810% Timeshare Loan-Backed Notes, Series 2008-A Class F (the “Class F
Notes”) and $3,086,000 11.630% Timeshare Loan-Backed Notes, Series
2008-A, Class G (the “Class G Notes” and together with the Class
A Notes, Class B Notes, Class C Notes, Class D Notes, Class E Notes and Class F
Notes, the “Notes”);

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

                    WHEREAS,
the Servicer has agreed to service and administer the Timeshare Loans securing
the Notes and the Backup Servicer has agreed to, among other things, service
and administer the Timeshare Loans if the Servicer shall no longer be the
Servicer hereunder;

                    WHEREAS,
the Club Trustee is a limited purpose entity which, on behalf of Beneficiaries
of the Club, holds title to the Timeshare Properties related to the Club Loans.

                         NOW,
THEREFORE, THIS INDENTURE WITNESSETH:

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

1

GRANTING CLAUSE

                    To
secure the payment of the principal of and interest on the Notes in accordance
with their terms, the payment of all of the sums payable under this Indenture
and the performance of the covenants contained in this Indenture, the Issuer
hereby Grants to the Indenture Trustee, for the benefit of the Noteholders, all
of the Issuer’s right, title and interest in and to the following whether now
owned or hereafter acquired and any and all benefits accruing to the Issuer
from, (i) the Initial Timeshare Loans specified on Schedule I hereto, (ii) any Subsequent
Timeshare Loans, (iii) any Qualified Substitute Timeshare Loans, (iv) the
Receivables in respect of each Timeshare Loan due after the related Cut-Off
Date, (v) the related Timeshare Loan Documents (excluding any rights as
developer or declarant under the Timeshare Declaration, the Timeshare Program
Consumer Documents or the Timeshare Program Governing Documents), (vi) all
Related Security in respect of each Timeshare Loan, (vii) all rights and
remedies under the Transfer Agreement, the Bluegreen Purchase Agreement, the
Sale Agreement, the Backup Servicing Agreement, the Lockbox Agreement, the
Administration Agreement, the Remarketing Agreement and the Custodial
Agreement, (viii) all amounts properly deposited in the Lockbox Account
(after the related Cut-Off Date), the Collection Account, the General Reserve
Account, the Prefunding Account and the Capitalized Interest Account, (ix) the
Closing Date Eligible Investments and (x) proceeds of the foregoing (including,
without limitation, all cash proceeds, accounts, accounts receivable, notes,
drafts, acceptances, chattel paper, checks, deposit accounts, insurance
proceeds (as applicable), condemnation awards, rights to payment of any and
every kind, and other forms of obligations and receivables which at any time
constitute all or part or are included in the proceeds of any of the foregoing)
(collectively, the “Trust Estate”). Notwithstanding the
foregoing, the Trust Estate shall not include (i) any Timeshare Loan released
from the Lien of this Indenture in accordance with the terms hereof and any
Related Security, Timeshare Loan Documents, income or proceeds related to such
released Timeshare Loan, (ii) any amount distributed pursuant to Section 3.4 or
Section 6.6 hereof or (iii) any Misdirected Deposits.

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

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

                    The
Custodian shall hold the Timeshare Loan Files in trust, for the use and benefit
of the Issuer and all present and future Noteholders, and shall retain
possession thereof. The Custodian further agrees and acknowledges that each
other item making up the Trust Estate that is physically delivered to the
Custodian will be held by the Custodian in the State of Minnesota or in any
other location acceptable to the Indenture Trustee and the Servicer.

2

                    The
Indenture Trustee further acknowledges that in the event the conveyance of the
Timeshare Loans and the Closing Date Eligible Investments by the Depositor to
the Issuer pursuant to the Sale Agreement is determined to constitute a loan
and not a sale as it is intended by all the parties hereto, the Custodian will
be holding each of the Timeshare Loans as bailee of the Issuer; provided,
however, that with respect to the Timeshare Loans, the Custodian will
not act at the direction of the Issuer without the written consent of the
Indenture Trustee.

ARTICLE I.

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

          SECTION
1.1.     General Definitions and Usage of Terms.

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

                    (b)          With
respect to all terms in this Indenture, the singular includes the plural and
the plural the singular; words importing any gender include the other genders;
references to “writing” include printing, typing, lithography and other means
of reproducing words in a visible form; references to agreements and other
contractual instruments include all amendments, modifications and supplements
thereto or any changes therein entered into in accordance with their respective
terms and not prohibited by this Indenture; references to Persons include their
successors and assigns; and the term “including” means “including without
limitation”.

          SECTION
1.2.     Compliance Certificates and Opinions.

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

          SECTION
1.3.     Form of Documents Delivered to Indenture
Trustee.

                    In any case
where several matters are required to be certified by, or covered by an opinion
of, any specified Person, it is not necessary that all such matters be
certified by, or covered by the opinion of, only one such Person, or that they
be so certified or covered by only 

3

one document,
but one such Person may certify or give an opinion with respect to some matters
and one or more other such Persons as to other matters, and any such Person may
certify or give an opinion as to such matters in one or several documents.

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

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

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

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

4

          SECTION
1.4.     Acts of Noteholders, etc.

                    (a)          Any
request, demand, authorization, direction, notice, consent, waiver or other
action provided by this Indenture to be given or taken by Noteholders may be
embodied in and evidenced by one or more instruments of substantially similar
tenor signed by such Noteholders in person or by agents duly appointed in
writing; and, except as herein otherwise expressly provided, such action shall
become effective when such instrument or instruments are delivered to the
Indenture Trustee and, where it is hereby expressly required, to the Issuer.
Such instrument or instruments (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the “Act” of the Noteholders
signing such instrument or instruments. Proof of execution of any such
instrument or of a writing appointing any such agent shall be sufficient for
any purpose of this Indenture and (subject to Section 7.1 hereof) conclusive in
favor of the Indenture Trustee and the Issuer, if made in the manner provided
in this Section 1.4.

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

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

                    (d)          By
accepting the Notes issued pursuant to this Indenture, each Noteholder irrevocably
appoints the Indenture Trustee hereunder as the special attorney-in-fact for
such Noteholder vested with full power on behalf of such Noteholder to effect
and enforce the rights of such Noteholder for the benefit of such Noteholder; provided,
that nothing contained in this Section 1.4(d) shall be deemed to confer upon
the Indenture Trustee any duty or power to vote on behalf of the Noteholders
with respect to any matter on which the Noteholders have a right to vote
pursuant to the terms of this Indenture.

          SECTION
1.5.     Notice to Noteholders; Waiver.

                    (a)          Where
this Indenture provides for notice to Noteholders of any event, or the mailing
of any report to Noteholders, such notice or report shall be sufficiently given
(unless otherwise herein expressly provided) if in writing and mailed, via
first class mail, or sent by private courier or confirmed telecopy to each
Noteholder affected by such event or to whom such report is required to be
mailed, at its address as it appears in the Note Register, not later than the
latest date, and not earlier than the earliest date, prescribed for the giving
of such notice or the

5

mailing of
such report. In any case where a notice or report to Noteholders is mailed,
neither the failure to mail such notice or report, nor any defect in any notice
or report so mailed, to any particular Noteholder shall affect the sufficiency
of such notice or report with respect to other Noteholders. Where this
Indenture provides for notice in any manner, such notice may be waived in
writing by the Person entitled to receive such notice, either before or after
the event, and such waiver shall be the equivalent of such notice. Waivers of
notice by Noteholders shall be filed with the Indenture Trustee, but such
filing shall not be a condition precedent to the validity of any action taken
in reliance upon such waiver.

                    (b)          In
case by reason of the suspension of regular mail service or by reason of any
other cause it shall be impracticable to mail or send notice to Noteholders, in
accordance with Section 1.5(a) hereof, of any event or any report to
Noteholders when such notice or report is required to be delivered pursuant to
any provision of this Indenture, then such notification or delivery as shall be
made with the approval of the Indenture Trustee shall constitute a sufficient
notification for every purpose hereunder.

          SECTION
1.6.     Effect of Headings and Table of Contents.

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

          SECTION
1.7.     Successors and Assigns.

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

          SECTION
1.8.     GOVERNING LAW.

                    THIS
INDENTURE AND THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO PRINCIPLES
OF CONFLICTS OF LAW OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE GENERAL
OBLIGATIONS LAW OF THE STATE OF NEW YORK. UNLESS MADE APPLICABLE IN A
SUPPLEMENT HERETO, THIS INDENTURE IS NOT SUBJECT TO THE TRUST INDENTURE ACT OF
1939, AS AMENDED, AND SHALL NOT BE GOVERNED THEREBY AND CONSTRUED IN ACCORDANCE
THEREWITH.

          SECTION
1.9.     Legal Holidays.

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

6

          SECTION
1.10.     Execution in Counterparts.

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

          SECTION
1.11.     Inspection.

                    The
Issuer agrees that, on ten Business Days’ prior notice (or, one Business Day’s
prior notice after the occurrence and during the occurrence of an Event of
Default or a Servicer Event of Default), it will permit the representatives of
the Indenture Trustee or any Noteholder, during the Issuer’s normal business
hours, to examine all of the books of account, records, reports and other
papers of the Issuer, to make copies thereof and extracts therefrom, and to
discuss its affairs, finances and accounts with its designated officers,
employees and independent accountants in the presence of such designated
officers and employees (and by this provision the Issuer hereby authorizes its
independent accountants to discuss with such representatives such affairs,
finances and accounts), all at such reasonable times and as often as may be
reasonably requested for the purpose of reviewing or evaluating the financial
condition or affairs of the Issuer or the performance of and compliance with
the covenants and undertakings of the Issuer and the Servicer in this Indenture
or any of the other documents referred to herein or therein. Any reasonable
expense incident to the exercise by the Indenture Trustee at any time or any
Noteholder during the continuance of any Default or Event of Default, of any
right under this Section 1.11 shall be borne by the Issuer and distributed in
accordance with Section 3.4 or Section 6.6 hereof, as applicable. Nothing
contained herein shall be construed as a duty of the Indenture Trustee to
perform such inspection.

          SECTION
1.12.     Survival of Representations and
Warranties.

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

ARTICLE II.

THE NOTES

          SECTION
2.1.     General Provisions.

                    (a)          Form
of Notes. The Notes shall be designated as the “BXG Receivables Note Trust
2008-A, Timeshare Loan-Backed Notes, Series 2008-A”. The Notes, together with
their certificates of authentication, shall be in substantially the form set
forth in Exhibit A attached hereto, with such appropriate insertions,
omissions, substitutions and other variations as are required or are permitted
by this Indenture, and may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon, as may
consistently herewith, be determined by the officer executing such Notes, as
evidenced by such officer’s execution of such Notes.

7

                    (b)          Denominations.
The Outstanding Note Balance of the Class A Notes, the Class B Notes, the Class
C Notes, Class D Notes, the Class E Notes, the Class F Notes and the Class G
Notes which may be authenticated and delivered under this Indenture is limited
to $17,794,000, $9,566,000, $14,126,000, $4,354,000, $5,691,000, $5,383,000 and
$3,086,000, respectively. The Notes shall be issuable only as registered Notes,
without interest coupons, in the denominations of at least $50,000 and in
integral multiples of $1,000; provided, however, that the
foregoing shall not restrict or prevent the transfer in accordance with Section
2.4 hereof of any Note with a remaining Outstanding Note Balance of less than
$50,000.

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

          SECTION
2.2.     Global Notes. 

                    Each
of the Notes, upon original issuance, shall be issued in the form of one or
more book-entry global certificates (the “Global Notes” and each, a “Global Note”)
to be deposited with the Indenture Trustee as custodian for The Depository
Trust Company, the initial Depository, by or on behalf of the Issuer. All
Global Notes shall be initially registered on the Note Register in the name of
Cede & Co., the nominee of DTC and no Note Owner will receive a definitive
note (a “Definitive
Note”) representing such Note Owner’s interest in the related Class
of Notes, except as provided in Section 2.3 hereof. Unless and until Definitive
Notes have been issued in respect of a Class of Notes pursuant to Section 2.3
hereof:

                    (a)          the
provisions of this Section 2.2 shall be in full force and effect with respect
to such Class of Notes;

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

                    (c)          to
the extent that the provisions of this Section 2.2 conflict with any other
provisions of this Indenture, the provisions of this Section 2.2 shall control;
and

8

                    (d)          the
rights of the respective Note Owners of a Class of Notes shall be exercised
only through the Depository and the Depository Participants and shall be
limited to those established by law and agreements between the respective Note
Owners and the Depository and/or the Depository Participants. Pursuant to the
Depository Agreement, unless and until Definitive Notes are issued in respect
of the Notes pursuant to Section 2.3 hereof, the Depository will make
book-entry transfers among the Depository Participants and receive and transmit
distributions of principal of, and interest on, the Notes to the Depository
Participants.

          SECTION
2.3.     Definitive Notes. 

                    If
(a) the Depository advises the Indenture Trustee in writing that the Depository
is no longer willing, qualified or able to properly discharge its
responsibilities as Depository with respect to the Global Notes and the Issuer
is unable to locate a qualified successor, or (b) after the occurrence of an
Event of Default, Note Owners evidencing not less than 66-2/3% of the Adjusted
Note Balance of such Class of Notes, advise the Indenture Trustee and the Depository
through the Depository Participants in writing that the continuation of a
book-entry system with respect to such Class of Notes, respectively, through
the Depository is no longer in the best interest of such Note Owners, the
Indenture Trustee shall use its best efforts to notify all affected Note Owners
through the Depository of the occurrence of any such event and of the
availability of Definitive Notes to such Note Owners. None of the Issuer, the
Indenture Trustee or the Servicer shall be liable for any delay in delivery of
such instructions and may conclusively rely on, and shall be protected in
relying on, such instructions. Upon the issuance of Definitive Notes, the
Issuer, the Indenture Trustee, the Note Registrar and the Servicer shall recognize
holders of Definitive Notes as Noteholders hereunder. Upon the issuance of
Definitive Notes, all references herein to obligations imposed upon or to be
performed by the Depository shall be deemed to be imposed upon and performed by
the Indenture Trustee, to the extent applicable with respect to such Definitive
Notes. 

          SECTION
2.4.     Registration, Transfer and Exchange of
Notes.

                    (a)          The
Issuer shall cause to be kept at the Corporate Trust Office a register (the “Note
Register”) for the registration, transfer and exchange of Notes. The
Indenture Trustee is hereby appointed “Note Registrar” for purposes of
registering Notes and transfers of Notes as herein provided. The names and
addresses of all Noteholders and the names and addresses of the transferees of
any Notes shall be registered in the Note Register; provided, however,
in no event shall the Note Registrar be required to maintain in the Note
Register the names of the individual participants holding Notes through the
Depository. The Person in whose name any Note is so registered shall be deemed
and treated as the sole owner and Noteholder thereof for all purposes of this
Indenture and the Note Registrar, the Issuer, the Indenture Trustee, the
Servicer and any agent of any of them shall not be affected by any notice or
knowledge to the contrary. A Definitive Note is transferable or exchangeable
only upon the surrender of such Note to the Note Registrar at the Corporate
Trust Office together with an assignment and transfer (executed by the
Noteholder or his duly authorized attorney), subject to the applicable
requirements of this Section 2.4. Upon request of the Indenture Trustee or the
Servicer, the Note Registrar shall provide the Indenture Trustee or the Servicer,
as applicable, with the names and addresses of the Noteholders.

9

                    (b)          Upon
surrender for registration of transfer of any Definitive Note, subject to the
applicable requirements of this Section 2.4, the Issuer shall execute and the
Indenture Trustee shall duly authenticate in the name of the designated
transferee or transferees, one or more new Notes in denominations of a like
aggregate denomination as the Definitive Note being surrendered. Each Note
surrendered for registration of transfer shall be canceled and subsequently
destroyed by the Note Registrar. Each new Note issued pursuant to this Section
2.4 shall be registered in the name of any Person as the transferring
Noteholder may request, subject to the applicable provisions of this Section
2.4. All Notes issued upon any registration of transfer or exchange of Notes
shall be entitled to the same benefits under this Indenture as the Notes
surrendered upon such registration of transfer or exchange.

                    (c)          The
issuance of the Notes will not be registered or qualified under the Securities
Act or the securities laws of any state. No resale or transfer of any Note may
be made unless such resale or transfer is made in accordance with this
Indenture and only if (i) in the United States to a person whom the transferor
reasonably believes is a “qualified institutional buyer” (as defined in Rule
144A) that is purchasing for its own account or for the account of a qualified
institutional buyer in a transaction meeting the requirements of Rule 144A as
certified by the transferee (other than the Initial Purchaser and their
respective initial transferees) in a letter in the form of Exhibit B
hereto, (ii) pursuant to an exemption from registration under the Securities
Act provided by Rule 144 (if available) or (iii) pursuant to an effective
registration statement under the Securities Act, in each of cases (i) through
(iii) in accordance with any applicable securities laws of any state of the
United States. Each transferee and each subsequent transferee will be required
to notify any subsequent purchaser of such Notes from it of the resale
restrictions described herein. None of the Issuer, the Servicer or the
Indenture Trustee is obligated to register or qualify the Notes under the
Securities Act or any other securities law or to take any action not otherwise
required under this Indenture to permit the transfer of any Note without
registration.

                    (d)          No
resale or other transfer of any Note may be made to any transferee unless (i)
such transferee is not, and will not acquire such Note on behalf or with the
assets of, any Benefit Plan or (ii) no “prohibited transaction” under ERISA or
section 4975 of the Code or Similar Law that is not subject to a statutory,
regulatory or administrative exemption will occur in connection with
purchaser’s or such transferee’s acquisition or holding of such Note. In
addition, the Notes may not be purchased by or transferred to any Benefit Plan
or person acting on behalf of or with assets of any Benefit Plan, unless it
represents that it is not sponsored (within the meaning of Section 3(16)(B) of
ERISA) by the Issuer, the Depositor, the Originators, the Servicer, the
Indenture Trustee, the Owner Trustee, the Administrator, the Paying Agent, the
Custodian, the Backup Servicer, the Lockbox Bank or the Initial Purchaser, or
by any affiliate of any such person. In addition to the applicable provisions
of this Section 2.4 and the rules of the Depository, the exchange, transfer and
registration of transfer of Global Notes shall only be made in accordance with
Section 2.4(c) hereof and this Section 2.4(d).

                    (e)          No
fee or service charge shall be imposed by the Note Registrar for its services
in respect of any registration of transfer or exchange referred to in this
Section 2.4. The Note Registrar may require payment by each transferor of a sum
sufficient to cover any tax, expense or other governmental charge payable in
connection with any such transfer.

10

                    (f)          None
of the Issuer, the Indenture Trustee, the Servicer or the Note Registrar is
obligated to register or qualify the Notes under the Securities Act or any
other securities law or to take any action not otherwise required under this
Indenture to permit the transfer of such Notes without registration or
qualification. Any such Noteholder desiring to effect such transfer shall, and
does hereby agree to, indemnify the Issuer, the Indenture Trustee, the Servicer
and the Note Registrar against any loss, liability or expense that may result
if the transfer is not so exempt or is not made in accordance with such federal
and state laws.

                    (g)          The
Servicer agrees to cause the Issuer, and the Issuer agrees to provide, such
information as required under Rule 144A under the Securities Act so as to allow
resales of Notes to “qualified institutional buyers” (as defined therein) in
accordance herewith.

                    (h)          The
Notes represent the sole obligation of the Issuer payable from the Trust Estate
and do not represent the obligations of the Originators, the Servicer, the
Depositor, the Backup Servicer, the Owner Trustee, the Indenture Trustee, the
Administrator or the Custodian.

                    (i)          The
Issuer may not, at any time, own any Class of Notes.

          SECTION
2.5.     Mutilated, Destroyed, Lost and Stolen
Notes.

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

                    (b)          If
there shall be delivered to the Issuer and the Indenture Trustee (i) evidence
to their satisfaction of the destruction, loss or theft of any Note and (ii)
such security or indemnity as may be reasonably required by them to save each
of them and any agent of either of them harmless then, in the absence of actual
notice to the Issuer or the Indenture Trustee that such Note has been acquired
by a bona fide purchaser, the Issuer shall execute and upon its request the
Indenture Trustee shall authenticate and deliver, in lieu of any such
destroyed, lost or stolen Note, a replacement Note of like tenor and principal
amount and bearing a number not contemporaneously outstanding.

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

                    (d)          Upon
the issuance of any replacement Note under this Section 2.5, the Issuer or the
Indenture Trustee may require the payment by the Noteholder of a sum sufficient
to cover any Tax or other governmental charge that may be imposed as a result
of the issuance of such replacement Note.

                    (e)          Every
replacement Note issued pursuant to this Section 2.5 in lieu of any destroyed,
lost or stolen Note shall constitute an original additional contractual
obligation of the Issuer, whether or not the destroyed, lost or stolen Note
shall be at any time enforceable by 

11

anyone, and
shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Notes duly issued hereunder.

                    (f)          The
provisions of this Section 2.5 are exclusive and shall preclude (to the extent
lawful) all other rights and remedies with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Notes.

          SECTION
2.6.     Payment of Interest and Principal; Rights
Preserved.

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

                    (b)          All
reductions in the principal amount of a Note affected by payments of principal
made on any Payment Date shall be binding upon all Noteholders of such Note and
of any Note issued upon the registration of transfer thereof or in exchange
therefore or in lieu thereof, whether or not such payment is noted on such
Note. All payments on the Notes shall be paid without any requirement of
presentment, but each Noteholder of any Note shall be deemed to agree, by its
acceptance of the same, to surrender such Note at the Corporate Trust Office
within 30 days after receipt of the final principal payment of such Note.

          SECTION
2.7.     Persons Deemed Owners.

                    Prior
to due presentment of a Note for registration of transfer, the Issuer, the
Indenture Trustee, and any agent of the Issuer or the Indenture Trustee may
treat the registered Noteholder as the owner of such Note for the purpose of
receiving payment of principal of and interest on such Note and for all other
purposes whatsoever, whether or not such Note is overdue, and neither the
Issuer, the Indenture Trustee, nor any agent of the Issuer or the Indenture
Trustee shall be affected by notice to the contrary.

          SECTION
2.8.     Cancellation.

                    All
Notes surrendered for registration of transfer or exchange or following final
payment shall, if surrendered to any Person other than the Indenture Trustee,
be delivered to the Indenture Trustee and shall be promptly canceled by it. The
Issuer may at any time deliver to the Indenture Trustee for cancellation any
Notes previously authenticated and delivered hereunder which the Issuer may
have acquired in any manner whatsoever, and all Notes so delivered shall be
promptly canceled by the Indenture Trustee. No Notes shall be authenticated in
lieu of or in exchange for any Notes canceled as provided in this Section 2.8,
except as expressly permitted 

12

by this
Indenture. All canceled Notes held by the Indenture Trustee may be disposed of
in the normal course of its business or as directed by an Issuer Order.

          SECTION
2.9.     Noteholder Lists.

                    The
Indenture Trustee shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses of
the Noteholders. In the event the Indenture Trustee no longer serves as the
Note Registrar, the Issuer (or any other obligor upon the Notes) shall furnish
to the Indenture Trustee at least five Business Days before each Payment Date
(and in all events in intervals of not more than six months) and at such other
times as the Indenture Trustee may request in writing a list in such form and
as of such date as the Indenture Trustee may reasonably require of the names
and addresses of the Noteholders.

          SECTION
2.10.     Treasury Notes.

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

          SECTION
2.11.     Notice to Depository.

                    Whenever
notice or other communication to the holders of Global Notes is required under
this Indenture, unless and until Definitive Notes have been issued to the
related Note Owners pursuant to Section 2.3 hereof, the Indenture Trustee shall
give all such notices and communications specified herein to be given to such
Note Owners to the Depository.

          SECTION
2.12.     Confidentiality.

                    Each
Noteholder, by acceptance of a Note, agrees and covenants that it shall hold in
confidence all Confidential Information;
provided, however, that any Noteholder may deliver or
disclose Confidential Information to (i) its directors, officers,
trustees, managers, employees, agents, attorneys and affiliates (to the extent
such disclosure reasonably relates to the investment represented by the Notes),
(ii) its financial advisors and other professional advisors who agree to
hold confidential such information substantially in accordance with the terms
of this Section 2.12, (iii) any other Noteholder, (iv) any
institutional investor to which such Noteholder sells or offers to sell such
Note or any part thereof or any participation therein (if such Person has
agreed in writing prior to its receipt of such confidential information to be
bound by the provisions of this Section 2.12), (v) any federal or
state regulatory authority having jurisdiction over such Noteholder,
(vi) the National Association of Insurance Commissioners or any similar
organization, or any nationally recognized rating agencies that requires access
to information about such Noteholder’s investment portfolio, (vii) the Rating
Agency or (viii) any other Person to which such delivery or disclosure may
be necessary or appropriate (w) to effect compliance with any law, rule,
regulation or order applicable to such Noteholder, (x) in response to any
subpoena or other legal process, (y) in connection with any litigation to
which such Noteholder is

13

 a party or (z) if an Event of Default
has occurred and is continuing, to the extent such Noteholder may reasonably
determine such delivery and disclosure to be necessary or appropriate in the
enforcement or for the protection of the rights and remedies under the Notes
and the Transaction Documents.

ARTICLE III.

ACCOUNTS; COLLECTION AND

APPLICATION OF MONEYS; REPORTS

          SECTION
3.1.     Trust Accounts; Investments by Indenture
Trustee.

                    (a)          On
or before the Closing Date, the Indenture Trustee shall establish in the name
of the Indenture Trustee for the benefit of the Noteholders or, in the case of
the Lockbox Account and the Credit Card Account, in the name of the Issuer, as
provided in this Indenture, the Trust Accounts, which accounts (other than the
Lockbox Account and the Credit Card Account) shall be Eligible Bank Accounts
maintained at the Corporate Trust Office. 

                    Subject
to the further provisions of this Section 3.1(a), the Indenture Trustee shall,
upon receipt or upon transfer from another account, as the case may be, deposit
into such Trust Accounts all amounts and Eligible Investments received by it
which are required to be deposited therein in accordance with the provisions of
this Indenture. All such amounts and all investments made with such amounts,
including all income and other gain from such investments, shall be held by the
Indenture Trustee in such accounts as part of the Trust Estate as herein
provided, subject to withdrawal by the Indenture Trustee in accordance with,
and for the purposes specified in the provisions of, this Indenture.

                    (b)          The
Indenture Trustee shall assume that any amount remitted to it in respect of the
Trust Estate is to be deposited into the Collection Account pursuant to Section
3.2(a) hereof unless a Responsible Officer of the Indenture Trustee receives
written instructions from the Servicer to the contrary.

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

                    (d)          So
long as no Event of Default shall have occurred and be continuing, all or a
portion of the amounts in any Trust Account (other than the Lockbox Account and
the Credit Card Account) shall be invested and reinvested by the Indenture Trustee
pursuant to an Issuer Order in one or more Eligible Investments. Subject to the
restrictions on the maturity of investments set forth in Section 3.1(f) hereof,
each such Issuer Order may authorize the Indenture Trustee to make the specific
Eligible Investments set forth therein, to make Eligible Investments from time
to time consistent with the general instructions set forth therein, in each
case, in such amounts as such Issuer Order may specify. Until an Issuer Order
to the contrary is delivered, the Indenture Trustee shall make the Eligible
Investments set forth in Exhibit A to the Administration Agreement.

                    (e)          In
the event that either (i) the Issuer shall have failed to give investment
directions to the Indenture Trustee by 9:30 A.M., New York City time on any
Business Day on

14

which there
may be uninvested cash or (ii) an Event of Default shall be continuing, the
Indenture Trustee shall promptly invest and reinvest the funds then in the
designated Trust Account to the fullest extent practicable in those obligations
or securities described in clause (e) of the definition of “Eligible
Investments”. All investments made by the Indenture Trustee shall mature no
later than the maturity date therefor permitted by Section 3.1(f) hereof.

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

                    (g)          Subject
to Section 3.1(d) hereof, any investment of any funds in any Trust Account
shall be made under the following terms and conditions:

	
 

	
 

	
 

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

	
 

	
 

	
 

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

                    (h)          The
Indenture Trustee shall not in any way be held liable by reason of any
insufficiency in any Trust Account resulting from losses on investments made or
transferred in accordance with the provisions of this Section 3.1 including,
but not limited to, losses resulting from the sale or depreciation in the
market value of such investments (but the institution serving as Indenture
Trustee shall at all times remain liable for its own obligations, if any,
constituting part of such investments). The Indenture Trustee shall not be
liable for any investment or liquidation of an investment made by it in
accordance with this Section 3.1 on the grounds that it could have made a more
favorable investment or a more favorable selection for sale of an investment.

                    (i)          The
Indenture Trustee shall not be permitted to vote any Eligible Investments
unless it has been advised that such vote is for “protective” (as defined by
generally accepted accounting principles in the United States) purposes.

          SECTION
3.2.     Establishment and Administration of the
Trust Accounts.

                    (a)          Collection
Account. The Issuer hereby directs and the Indenture Trustee hereby agrees
to cause to be established and maintained an account (the “Collection Account”) for the
benefit of the Noteholders. The Collection Account shall be an Eligible Bank
Account initially established at the corporate trust department of the
Indenture Trustee, bearing the following designation “BXG Receivables Note
Trust 2008-A, Timeshare Loan-Backed Notes, Series 2008-A — Collection Account,
U.S. Bank National Association, as Indenture Trustee for the benefit of the
Noteholders”. The Indenture Trustee on behalf of the Noteholders shall possess
all right, title and interest in all funds on deposit from time to time in the
Collection Account and in all proceeds thereof. The Collection Account shall be
under the sole dominion

15

and control of
the Indenture Trustee for the benefit of the Noteholders as their interests
appear in the Trust Estate. If, at any time, the Collection Account ceases to
be an Eligible Bank Account, the Indenture Trustee shall within two Business
Days establish a new Collection Account which shall be an Eligible Bank
Account, transfer any cash and/or any investments to such new Collection
Account, and from the date such new Collection Account is established, it shall
be the “Collection Account”. The Indenture Trustee agrees to immediately
deposit any amounts received by it into the Collection Account. Amounts on
deposit in the Collection Account shall be invested in accordance with Section
3.1 hereof. Withdrawals and payments from the Collection Account will be made
on each Payment Date as provided in Section 3.4 or Section 6.6 hereof, as
applicable. The Indenture Trustee, at the written direction of the Servicer,
shall withdraw (no more than once per calendar week) from the Collection
Account and return to the Servicer or as directed by the Servicer, any amounts
which (i) were mistakenly deposited in the Collection Account, including,
without limitation, amounts representing Misdirected Payments or (ii) represent
Additional Servicing Compensation. The Indenture Trustee may conclusively rely
on such written direction. 

                    (b)          General
Reserve Account. The Issuer hereby directs and the Indenture Trustee hereby
agrees to cause to be established and maintained an account (the “General Reserve Account”) for the benefit
of the Noteholders. On the Closing Date, the Indenture Trustee shall deposit,
from the proceeds from the sale of the Notes, an amount equal to the General
Reserve Account Initial Deposit. The General Reserve Account shall be an
Eligible Bank Account initially established at the corporate trust department
of the Indenture Trustee, bearing the following designation “BXG Receivables
Note Trust 2008-A, Timeshare Loan-Backed Notes, Series 2008-A — General Reserve
Account, U.S. Bank National Association, as Indenture Trustee for the benefit
of the Noteholders”. The Indenture Trustee on behalf of the Noteholders shall
possess all right, title and interest in all funds on deposit from time to time
in the General Reserve Account and in all proceeds thereof. The General Reserve
Account shall be under the sole dominion and control of the Indenture Trustee
for the benefit of the Noteholders as their interests appear in the Trust
Estate. If, at any time, the General Reserve Account ceases to be an Eligible
Bank Account, the Indenture Trustee shall within two Business Days establish a
new General Reserve Account which shall be an Eligible Bank Account, transfer
any cash and/or any investments to such new General Reserve Account and from
the date such new General Reserve Account is established, it shall be the
“General Reserve Account”. Amounts on deposit in the General Reserve Account
shall be invested in accordance with Section 3.1 hereof. Deposits to the
General Reserve Account shall be made in accordance with Section 3.4 hereof.
Withdrawals and payments from the General Reserve Account shall be made in the
following manner: 

	
 

	
 

	
 

	
          (i)          Withdrawals.
 Subject to Sections 3.2(b)(ii) and (iii) hereof, if on any Payment Date,
 Available Funds (without giving effect to any deposit from the General
 Reserve Account) would be insufficient to pay any portion of the Required
 Payments on such Payment Date, the Indenture Trustee shall, based on the
 Monthly Servicer Report, withdraw from the General Reserve Account an amount
 equal to the lesser of such insufficiency and the amount on deposit in the
 General Reserve Account and deposit such amount in the Collection Account. 

16

	
 

	
 

	
 

	
          (ii)          Early
 Amortization Event, Trigger Event or Sequential Pay Event. Upon the
 occurrence of an Early Amortization Event, a Trigger Event or Sequential Pay
 Event, the Indenture Trustee shall withdraw all amounts on deposit in the
 General Reserve Account and shall deposit such amounts to the Collection
 Account for distribution in accordance with Section 3.4 or Section 6.6
 hereof, as applicable. 

	
 

	
 

	
 

	
          (iii)          Stated
 Maturity or Payment in Full. On the earlier to occur of the Stated
 Maturity and the Payment Date on which the Outstanding Note Balance of all
 Classes of Notes will be reduced to zero, the Indenture Trustee shall
 withdraw all amounts on deposit in the General Reserve Account and shall
 deposit such amounts in the Collection Account for distribution in accordance
 with Section 3.4 or Section 6.6 hereof, as applicable. 

	
 

	
 

	
 

	
          (iv)          Amounts
 in Excess of General Reserve Account Required Balance. If amounts on
 deposit in the General Reserve Account are greater than the General Reserve
 Account Required Balance (after giving effect to all other distributions and
 disbursements on such Payment Date), the Indenture Trustee shall, based on
 the Monthly Servicer Report, withdraw funds in excess of the General Reserve
 Account Required Balance from the General Reserve Account and disburse such
 amounts to the Certificate Distribution Account to be distributed in
 accordance with the Trust Agreement. 

                    (c)          Prefunding
Account. The Issuer hereby directs and the Indenture Trustee hereby agrees
to cause to be established and maintained an account (the “Prefunding Account”) for the benefit of the
Noteholders. On the Closing Date, the Issuer shall cause the Indenture Trustee
to deposit into the Prefunding Account Closing Date Eligible Investments with a
principal balance equal to the Prefunding Amount Initial Deposit. The
Prefunding Account shall be an Eligible Bank Account initially established at
the corporate trust department of the Indenture Trustee, bearing the following
designation “BXG Receivables Note Trust 2008-A, Timeshare Loan-Backed Notes,
Series 2008-A — Prefunding Account, U.S. Bank National Association, as
Indenture Trustee for the benefit of the Noteholders”. The Indenture Trustee on
behalf of the Noteholders shall possess all right, title and interest in all
funds on deposit from time to time in the Prefunding Account and in all
proceeds thereof. The Prefunding Account shall be under the sole dominion and
control of the Indenture Trustee for the benefit of the Noteholders as their
interests appear in the Trust Estate. If, at any time, the Prefunding Account
ceases to be an Eligible Bank Account, the Indenture Trustee shall within two
Business Days establish a new Prefunding Account which shall be an Eligible
Bank Account, transfer any cash and/or any investments to such new Prefunding
Account and from the date such new Prefunding Account is established, it shall
be the “Prefunding Account”. Amounts on deposit in the Prefunding Account shall
be invested in accordance with Section 3.1 hereof. Withdrawals and payments
from the Prefunding Account shall be made in the following manner: 

	
 

	
 

	
 

	
          (i)          Prefunding
 Period. At or before 9:00 A.M. New York City time, on each Transfer Date
 for a transfer of Subsequent Timeshare Loans, the Depositor shall instruct
 the Indenture Trustee in writing (x) to withdraw the cash portion of the
 purchase price from the Prefunding Account which is an amount equal to 87.5%
 of the Cut-Off Date Loan Balance of the Subsequent Timeshare Loans
 transferred to 

17

	
 

	
 

	
 

	
the Issuer
 and to be pledged to the Indenture Trustee as part of the Trust Estate and
 (y) subject to satisfaction of the conditions specified in Section 4.2
 hereof, shall distribute such amounts to the Depositor. 

	
 

	
 

	
 

	
          (ii)          Prefunding
 Termination Date. On the Prefunding Termination Date, the Indenture
 Trustee shall deposit all amounts remaining in the Prefunding Account into
 the Collection Account and such amounts will be distributed on the following
 Payment Date as a distribution of principal in accordance with Section 3.4
 hereof. 

	
 

	
 

	
 

	
          (iii)          Investment
 Earnings. On each Determination Date during the Prefunding Period, the
 Indenture Trustee shall withdraw all investment earnings on deposits in the
 Prefunding Account and deposit such amount into the Capitalized Interest
 Account. 

                    (d)          Capitalized
Interest Account. The Issuer hereby directs and the Indenture Trustee
hereby agrees to cause to be established and maintained an account (the “Capitalized Interest Account”) for the
benefit of the Noteholders. On the Closing Date, the Issuer shall cause the
Indenture Trustee to deposit into the Capitalized Interest Account Closing Date
Eligible Investments with a principal balance equal to the Capitalized Interest
Account Initial Deposit. The Capitalized Interest Account shall be an Eligible
Bank Account initially established at the corporate trust department of the
Indenture Trustee, bearing the following designation “BXG Receivables Note
Trust 2008-A, Timeshare Loan-Backed Notes, Series 2008-A — Capitalized Interest
Account, U.S. Bank National Association, as Indenture Trustee for the benefit
of the Noteholders”. The Indenture Trustee on behalf of the Noteholders shall
possess all right, title and interest in all funds on deposit from time to time
in the Capitalized Interest Account and in all proceeds thereof. The
Capitalized Interest Account shall be under the sole dominion and control of
the Indenture Trustee for the benefit of the Noteholders as their interests
appear in the Trust Estate. If, at any time, the Capitalized Interest Account
ceases to be an Eligible Bank Account, the Indenture Trustee shall within two
Business Days establish a new Capitalized Interest Account which shall be an
Eligible Bank Account, transfer any cash and/or any investments to such new
Capitalized Interest Account and from the date such new Capitalized Interest
Account is established, it shall be the “Capitalized Interest Account”. Amounts
on deposit in the Capitalized Interest Account shall be invested in accordance
with Section 3.1 hereof. Withdrawals and payments from the Capitalized Interest
Account will be made on each Payment Date as follows: 

	
 

	
 

	
 

	
          (i)          Prefunding
 Period. On or before the Payment Date until the Payment Date on or
 immediately following the Prefunding Termination Date, the Indenture Trustee
 shall, based on the Monthly Servicer Report, withdraw, to the extent
 available, from the Capitalized Interest Account for deposit into the
 Collection Account, an amount equal to the Capitalized Interest Requirement.
 Amounts in the Capitalized Interest Account shall be withdrawn solely to pay
 such amounts and shall not be available to the Noteholders or the Indenture
 Trustee for any other purpose. 

	
 

	
 

	
 

	
          (ii)          Prefunding
 Termination Date. Any amounts on deposit in the Capitalized Interest
 Account on the Payment Date on or immediately following the 

18

	
 

	
 

	
 

	
Prefunding
 Termination Date (after giving effect to all required transfers from the
 Capitalized Interest Account to the Collection Account on such Payment Date)
 shall be withdrawn and paid to the Certificate Distribution Account for
 distribution in accordance with the Trust Agreement. 

          SECTION
3.3.     Reserved. 

          SECTION
3.4.     Distributions. 

                    (a)          So
long as no Sequential Pay Event has occurred, on each Payment Date, to the
extent of Available Funds and based on the Monthly Servicer Report, the
Indenture Trustee shall withdraw funds from the Collection Account to make the
following disbursements and distributions to the following parties, in the
following order of priority: 

	
 

	
 

	
 

	
          (i)         to
 the Indenture Trustee, the Indenture Trustee Fee, plus any accrued and unpaid
 Indenture Trustee Fees with respect to prior Payment Dates, and any
 extraordinary out-of-pocket expenses of the Indenture Trustee (up to $10,000
 per Payment Date and no more than a cumulative total of $100,000 for Servicer
 Termination Costs) incurred and not reimbursed in connection with its
 obligations and duties under this Indenture; 

	
 

	
 

	
 

	
          (ii)         to
 the Owner Trustee, the Owner Trustee Fee, if due, plus any accrued and unpaid
 Owner Trustee Fees with respect to prior Payment Dates; 

	
 

	
 

	
 

	
          (iii)        to
 the Administrator, the Administrator Fee, plus any accrued and unpaid
 Administrator Fees with respect to prior Payment Dates; 

	
 

	
 

	
 

	
          (iv)        to
 the Custodian, the Custodian Fee, plus any accrued and unpaid Custodian Fees
 with respect to prior Payment Dates; 

	
 

	
 

	
 

	
          (v)          to
 the Lockbox Bank, the Lockbox Fee, plus any accrued and unpaid Lockbox Fees
 with respect to prior Payment Dates; 

	
 

	
 

	
 

	
          (vi)         to
 the Servicer, the Servicing Fee, plus any accrued and unpaid Servicing Fees
 with respect to prior Payment Dates; 

	
 

	
 

	
 

	
          (vii)         to
 the Backup Servicer, the Backup Servicing Fee, plus any accrued and unpaid
 Backup Servicing Fees with respect to prior Payment Dates (less any amounts
 received from the Indenture Trustee, as successor Servicer); 

	
 

	
 

	
 

	
          (viii)        to
 the Class A Noteholders, the Class A Interest Distribution Amount; 

	
 

	
 

	
 

	
          (ix)          to
 the Class B Noteholders, the Class B Interest Distribution Amount; 

	
 

	
 

	
 

	
          (x)           to
 the Class C Noteholders, the Class C Interest Distribution Amount; 

19

	
 

	
 

	
 

	
          (xi)          to
 the Class D Noteholders, the Class D Interest Distribution Amount; 

	
 

	
 

	
 

	
          (xii)         to
 the Class E Noteholders, the Class E Interest Distribution Amount; 

	
 

	
 

	
 

	
          (xiii)        to
 the Class F Noteholders, the Class F Interest Distribution Amount; 

	
 

	
 

	
 

	
          (xiv)        to
 the Class A Noteholders, the Class A Principal Distribution Amount; 

	
 

	
 

	
 

	
          (xv)         to
 the Class B Noteholders, the Class B Principal Distribution Amount; 

	
 

	
 

	
 

	
          (xvi)        to
 the Class C Noteholders, the Class C Principal Distribution Amount; 

	
 

	
 

	
 

	
          (xvii)       to
 the Class D Noteholders, the Class D Principal Distribution Amount; 

	
 

	
 

	
 

	
          (xviii)      to
 the Class E Noteholders, the Class E Principal Distribution Amount; 

	
 

	
 

	
 

	
          (xix)         to
 the Class F Noteholders, the Class F Principal Distribution Amount; 

	
 

	
 

	
 

	
          (xx)          to
 the Class G Noteholders, the Class G Interest Distribution Amount; 

	
 

	
 

	
 

	
          (xxi)        to
 the Class G Noteholders, the Class G Principal Distribution Amount; 

	
 

	
 

	
 

	
          (xxii)       if
 an Early Amortization Event or Trigger Event shall have occurred and is
 continuing, to (A) the Class A Noteholders, (B) the Class B Noteholders, (C)
 the Class C Noteholders, (D) the Class D Noteholders, (E) the Class E
 Noteholders, (F) the Class F Noteholders and (G) the Class G Noteholders, pari
 passu and pro rata, their respective Percentage Interests of all remaining
 Available Funds; 

	
 

	
 

	
 

	
          (xxiii)       to
 (A) the Class A Noteholders, (B) the Class B Noteholders, (C) the Class C
 Noteholders, (D) the Class D Noteholders, (E) the Class E Noteholders, (F)
 the Class F Noteholders and (G) the Class G Noteholders in that order, the
 Deferred Interest Amount for such Class, if any; 

	
 

	
 

	
 

	
          (xxiv)       to
 the General Reserve Account, all remaining Available Funds until the amounts
 on deposit in the General Reserve Account shall be equal to the General
 Reserve Account Required Balance; 

	
 

	
 

	
 

	
          (xxv)       to
 the Indenture Trustee, any extraordinary out-of-pocket expenses of the
 Indenture Trustee not paid in accordance with (i) above; and 

20

	
 

	
 

	
 

	
          (xxvi)       any
 remaining Available Funds, to the Certificate Distribution Account for
 distribution pursuant to the Trust Agreement. 

                    (b)          On
and after the Assumption Date, the Indenture Trustee, as successor Servicer,
shall pay the Backup Servicing Fee from amounts received in respect of the
Servicing Fee. 

                    (c)          Upon
the occurrence of a Sequential Pay Event, distributions shall be made in
accordance with Section 6.6 hereof. 

          SECTION
3.5.     Reports to Noteholders. 

                    On
each Payment Date, the Indenture Trustee shall account to the Initial
Purchaser, each Noteholder, each Note Owner and to the Rating Agency the
portion of payments then being made which represents principal and the amount
which represents interest, and shall contemporaneously advise the Issuer of all
such payments. The Indenture Trustee may satisfy its obligations under this
Section 3.5 by making available electronically the Monthly Servicer Report to
the Initial Purchaser, the Noteholders, the Rating Agency and the Issuer; provided,
however, the Indenture Trustee shall have no obligation to provide such
information described in this Section 3.5 until it has received the requisite
information from the Issuer or the Servicer. On or before the fifth day prior
to the final Payment Date with respect to any Class, the Indenture Trustee
shall send notice of such Payment Date to the Rating Agency, the Initial
Purchaser and the Noteholders of such Class. Such notice shall include a
statement that if such Notes are paid in full on the final Payment Date,
interest shall cease to accrue as of the day immediately preceding such final
Payment Date. In addition, the Indenture Trustee shall deliver to the Note
Owners, all notices, compliance reports and other certificates delivered by the
Servicer or the Issuer pursuant to this Indenture. At a Note Owner’s request,
the Indenture Trustee agrees to provide such Note Owner an accounting of
balances in the General Reserve Account. 

                    The
Indenture Trustee may make available to the Noteholders, Note Owners and the
Rating Agency, via the Indenture Trustee’s internet website, the Monthly
Servicer Report available each month and, with the consent or at the direction
of the Issuer, such other information regarding the Notes and/or the Timeshare
Loans as the Indenture Trustee may have in its possession, but only with the
use of a password provided by the Indenture Trustee or its agent to such Person
upon receipt by the Indenture Trustee from such Person of a certification in
the form of Exhibit F; provided, however, that the
Indenture Trustee or its agent shall provide such password to the parties to
this Indenture and the Rating Agency without requiring such certification. The
Indenture Trustee will make no representation or warranties as to the accuracy
or completeness of such documents and will assume no responsibility therefor. 

                    The
Indenture Trustee’s internet website shall be specified by the Indenture
Trustee from time to time in writing to the Issuer, the Servicer, the
Noteholders and the Rating Agency. For assistance with this service,
Noteholders may call the customer service desk at (800) 934-6802. In connection
with providing access to the Indenture Trustee’s internet website, the
Indenture Trustee may require registration and the acceptance of a disclaimer.
The Indenture Trustee shall not be liable for the dissemination of information
in accordance with this Indenture. 

21

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

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

          SECTION
3.6.     Note Balance Write-Down Amounts. 

                    The
Note Balance Write-Down Amount, if any, on each Payment Date shall be applied
to the Adjusted Note Balance of a Class of Notes immediately following the
distribution of Available Funds in the following order of priority: first, to
the Class G Notes until the Adjusted Note Balance thereof is reduced to zero;
second, to the Class F Notes until the Adjusted Note Balance thereof is reduced
to zero; third, to the Class E Notes until the Adjusted Note Balance thereof is
reduced to zero; fourth, to the Class D Notes until the Adjusted Note Balance
thereof is reduced to zero; fifth, to the Class C Notes until the Adjusted Note
Balance thereof is reduced to zero; sixth, to the Class B Notes until the
Adjusted Note Balance thereof is reduced to zero; and seventh, to the Class A
Notes until the Adjusted Note Balance thereof is reduced to zero. The
application of the Note Balance Write-Down Amount to a Class of Notes shall not
reduce such Class’ entitlement to unpaid Principal Distribution Amounts. 

          SECTION
3.7.     Withholding Taxes. 

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

ARTICLE IV.

THE TRUST ESTATE

          SECTION
4.1.     Acceptance by Indenture Trustee. 

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

22

(ii) to the
Servicer, the Timeshare Loan Servicing Files, for each Subsequent Timeshare
Loan or Qualified Substitute Timeshare Loan to be conveyed on such Transfer
Date. 

                    (b)          The
Indenture Trustee shall perform its duties under this Section 4.1 and hereunder
on behalf of the Trust Estate and for the benefit of the Noteholders in
accordance with the terms of this Indenture and applicable law and, in each
case, taking into account its other obligations hereunder, but without regard
to: 

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

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

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

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

          SECTION
4.2.     Subsequent Timeshare Loans. 

                    With
respect to Subsequent Timeshare Loans, on each Transfer Date during the
Prefunding Period, subject to the satisfaction of the following conditions and
the requirements of Section 4.3 hereof, and in consideration of the Indenture
Trustee’s delivery on such Transfer Date to or upon the order of the Depositor
of the Timeshare Loan Acquisition Price, the Depositor shall sell, transfer,
assign, set over and otherwise convey without recourse to the Issuer, all
right, title and interest of the Depositor in and to each Subsequent Timeshare
Loan and the Issuer shall Grant such Subsequent Timeshare Loans to the
Indenture Trustee for the benefit of the Noteholders. Prior to the acceptance
by the Indenture Trustee of any Subsequent Timeshare Loan or the release of any
funds therefor, the following conditions must be satisfied on or prior to the
related Transfer Date: 

                    (a)          the
Depositor shall have provided the Indenture Trustee with a notice of a
subsequent transfer of Subsequent Timeshare Loans (a “Subsequent Transfer Notice”), a form of
which is attached hereto as Exhibit J which notice shall be given not
less than one Business Day prior to such Transfer Date; 

                    (b)          the
Issuer shall have deposited or caused to be deposited in the Collection Account
all principal and interest collected after the related Cut-Off Date in respect
of such Subsequent Timeshare Loan; 

                    (c)          no
Event of Default has occurred and is continuing and no such event would result
from the conveyance of such Subsequent Timeshare Loan to the Indenture Trustee;

                    (d)          the
Custodian shall have received the Timeshare Loan Files related to such
Subsequent Timeshare Loans and shall have given the Indenture Trustee a written
certification and receipt in accordance with the Custodial Agreement; 

23

                    (e)          the
Servicer shall have received the Timeshare Loan Servicing Files related to such
Subsequent Timeshare Loans; 

                    (f)          the
Indenture Trustee shall have received the certification required to be
delivered by the Depositor in Section 4.3 hereof; and 

                    (g)          no
Responsible Officer of the Indenture Trustee has Knowledge or has actually
received notice that any conditions to such transfer (including the
requirements in Section 4.3 hereof) have not been fulfilled and the Indenture
Trustee shall have received such other documents, opinions, certificates and
instruments as the Indenture Trustee may request. 

          SECTION
4.3.     Criteria for Subsequent Timeshare Loans.

          No
Subsequent Timeshare Loan shall be accepted as part of the Trust Estate on any
Transfer Date unless the Indenture Trustee shall have received a certification
from the Depositor that (i) the Depositor, as of such Transfer Date, has
restated each of the representations and warranties contained in Section 5(a)
of the Sale Agreement, (ii) each of the conditions in Section 4.2 above has
been satisfied, (iii) after the purchase of all Subsequent Timeshare Loans, (A)
the weighted average interest rate on all Subsequent Timeshare Loans shall be
greater than 14.75%, (B) the weighted average months of age on all Timeshare
Loans shall be greater than 3 months, (C) the percentage of Timeshare Loans
related to Units at Bluegreen Owned Resorts shall not be less than such
percentage on the Closing Date and (D) the percentage of Timeshare Loans
related to a Resort as a percentage of all Timeshare Loans does not vary from
such percentage on the Closing Date by more than 7%, and (iv) with respect to
each Subsequent Timeshare Loan being conveyed on such Transfer Date (a) such
Subsequent Timeshare Loan is an Eligible Timeshare Loan as of the Transfer
Date, (b) each Subsequent Timeshare Loan was not selected by the related Seller
in a manner that such Seller, in its reasonable business judgment, believes to
be materially adverse to the interests of the Noteholders; provided, that it is
acknowledged by the parties hereto that the certification in this clause (b) is
not intended and shall not be construed as a guaranty of the performance of
such Subsequent Timeshare Loans, and that such Subsequent Timeshare Loans may
perform differently than other timeshare loans originated by the related
Originator or other Affiliates of the related Seller, (c) each Subsequent
Timeshare Loan does not have a stated maturity later than June 2018, and (d)
the related Obligor has made at least one payment in respect of such Subsequent
Timeshare Loan. 

          SECTION
4.4.     Grant of Security Interest; Tax Treatment.

                    (a)          The
conveyance by the Issuer of the Timeshare Loans to the Indenture Trustee shall
not constitute and is not intended to result in an assumption by the Indenture
Trustee or any Noteholder of any obligation of the Issuer or the Servicer to
the Obligors, the insurers under any insurance policies, or any other Person in
connection with the Timeshare Loans. 

                    (b)          It
is the intention of the parties hereto that, with respect to all taxes, the
Notes will be treated as indebtedness of the Issuer to the Noteholders secured
by the Timeshare Loans (the “Intended Tax
Characterization”). The provisions of this Indenture shall be
construed in furtherance of the Intended Tax Characterization. Each of the
Issuer, the Servicer, 

24

the Indenture
Trustee, the Club Trustee and the Backup Servicer by entering into this
Indenture, and each Noteholder by the purchase of a Note, agree to report such
transactions for purposes of all taxes in a manner consistent with the Intended
Tax Characterization, unless otherwise required by applicable law. 

                    (c)          None
of the Issuer, the Servicer, the Club Trustee or the Backup Servicer shall take
any action inconsistent with the Indenture Trustee’s interest in the Timeshare
Loans and shall indicate or shall cause to be indicated in its books and records
held on its behalf that each Timeshare Loan and the other Timeshare Loans
constituting the Trust Estate has been assigned to the Indenture Trustee on
behalf of the Noteholders. 

          SECTION
4.5.     Further Action Evidencing Assignments.

                    (a)          The
Issuer and the Indenture Trustee each agrees that, from time to time, it will
promptly execute and deliver all further instruments and documents, and take
all further action, that may be necessary or appropriate, or that the Noteholders
representing at least 66-2/3% of the Adjusted Note Balance of each Class of
Notes may reasonably request, in order to perfect, protect or more fully
evidence the security interest in the Timeshare Loans or to enable the
Indenture Trustee to exercise or enforce any of its rights hereunder. Without
limiting the generality of the foregoing, the Issuer will, without the
necessity of a request and upon the request of the Indenture Trustee, execute
and file or record (or cause to be executed and filed or recorded) such
Assignments of Mortgage, financing or continuation statements, or amendments
thereto or assignments thereof, and such other instruments or notices, as may
be necessary or appropriate to create and maintain in the Indenture Trustee a
first priority perfected security interest, at all times, in the Trust Estate,
including, without limitation, recording and filing UCC-1 financing statements,
amendments or continuation statements prior to the effective date of any change
of the name, identity or structure or relocation of its chief executive office
or any change that would or could affect the perfection pursuant to any
financing statement or continuation statement or assignment previously filed or
make any UCC-1 or continuation statement previously filed pursuant to this
Indenture seriously misleading within the meaning of applicable provisions of
the UCC (and the Issuer shall give the Indenture Trustee at least 30 Business
Days prior notice of the expected occurrence of any such circumstance). The
Issuer shall deliver promptly to the Indenture Trustee file-stamped copies of
any such filings. 

                    (b)          (i)
The Issuer hereby grants to each of the Servicer and the Indenture Trustee a
power of attorney to execute, file and record all documents including, but not
limited to, Assignments of Mortgage, UCC-1 financing statements, amendments or
continuation statements, on behalf of the Issuer as may be necessary or
desirable to effectuate the foregoing and (ii) the Servicer hereby grants to
the Indenture Trustee a power of attorney to execute, file and record all
documents on behalf of the Servicer as may be necessary or desirable to
effectuate the foregoing; provided, however, that such grant
shall not create a duty on the part of the Indenture Trustee or the Servicer to
file, prepare, record or monitor, or any responsibility for the contents or
adequacy of, any such documents. 

25

          SECTION
4.6.     Substitution and Repurchase of Timeshare
Loans and Closing Date Eligible Investments. 

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

                    (b)          Optional
Purchase or Substitution of Club Loans. Pursuant to the Transfer Agreement
and the Bluegreen Purchase Agreement, with respect to any Original Club Loan,
on any date, the Club Originator, as designee of the Depositor, will (at its
option), if the related Obligor has elected to effect and the Club Originator
has agreed to effect an Upgrade, (i) pay to the Collection Account the
Repurchase Price for such Original Club Loan or (ii) substitute one or more
Qualified Substitute Timeshare Loans for such Original Club Loan and pay the
related Substitution Shortfall Amounts, if any; provided, however,
that the option to substitute one or more Qualified Substitute Timeshare Loans
for an Original Club Loan is limited on any date to (A) 20% of the Aggregate
Closing Date Collateral Balance, less (B) the aggregate Loan Balances of
Original Club Loans previously substituted by the Club Originator pursuant to
this Section 4.6(b) on prior Transfer Dates. The Club Originator, as designee
of the Depositor, shall deposit the related Repurchase Price and Substitution
Shortfall Amounts, if any, in the Collection Account as set forth in Section
4.6(d) hereof. The Issuer acknowledges that the Club Originator has agreed to
use best efforts to exercise its substitution option with respect to Original
Club Loans prior to exercise of its repurchase option, and to the extent that
the Club Originator shall elect to substitute Qualified Substitute Timeshare
Loans for an Original Club Loan, the Club Originator shall use best efforts to
cause each such Qualified Substitute Timeshare Loan to be, in the following
order of priority, (i) the Upgrade Club Loan related to such Original Club Loan
and (ii) an Upgrade Club Loan unrelated to such Original Club Loan. 

26

                    (c)          Optional
Purchase or Substitution of Defaulted Timeshare Loans. Pursuant to the
Transfer Agreement and the Bluegreen Purchase Agreement, with respect to any
Defaulted Timeshare Loans, on any date, the Club Originator, as designee of the
Depositor, shall have the option, but not the obligation, to either (i)
purchase the Defaulted Timeshare Loan at the Repurchase Price for such
Defaulted Timeshare Loan or (ii) substitute one or more Qualified Substitute
Timeshare Loans for such Defaulted Timeshare Loan and pay the related
Substitution Shortfall Amounts, if any; provided, however, that the option to
repurchase a Defaulted Timeshare Loan or to substitute one or more Qualified
Substitute Timeshare Loans for a Defaulted Timeshare Loan is limited on any
date to the Optional Purchase Limit and the Optional Substitution Limit,
respectively. The Club Originator, as designee of the Depositor, shall Purchase
or substitute Defaulted Timeshare Loans as provided herein and the Club Originator
shall deposit the related Repurchase Price and Substitution Shortfall Amounts,
if any, in the Collection Account as set forth in Section 4.6(d) hereof. The
Club Originator, may irrevocably waive the Club Originator’s option to purchase
or substitute a Defaulted Timeshare Loan by delivering or causing to be
delivered to the Indenture Trustee a Waiver Letter in the form of Exhibit G
attached hereto.  

                    (d)          Payment
of Repurchase Prices and Substitution Shortfall Amounts. The Issuer and the
Indenture Trustee shall direct that the Depositor remit or cause to be remitted
all amounts in respect of Repurchase Prices and Substitution Shortfall Amounts
payable during the related Due Period in immediately available funds to the
Indenture Trustee on the Transfer Date for deposit in the Collection Account. 

                    (e)          Schedule
of Timeshare Loans. The Issuer and Indenture Trustee shall direct the
Depositor to provide or cause to be provided to the Indenture Trustee on any
date on which a Timeshare Loan is purchased, repurchased or substituted with an
electronic supplement to the Schedule of Timeshare Loans reflecting the removal
and/or substitution of Timeshare Loans and subjecting any Qualified Substitute
Timeshare Loans to the provisions thereof. 

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

                    (g)          Qualified
Substitute Timeshare Loans. Within five Business Days after a Transfer
Date, the Issuer and the Indenture Trustee shall direct the Depositor to
deliver or cause the delivery of the Timeshare Loan Files of the related
Qualified Substitute Timeshare Loans to the Custodian in accordance with the
provisions of this Indenture and the Custodial Agreement. 

          SECTION
4.7.     Release of Lien. 

                    (a)          The
Issuer shall be entitled to obtain a release from the Lien of the Indenture for
any Timeshare Loan or Closing Date Eligible Investment purchased, repurchased
or substituted under Section 4.6 hereof, (i) upon satisfaction of each of the
applicable provisions 

27

of Section 4.6
hereof, (ii) in the case of any purchase or repurchase, after a payment by the
Depositor of the Repurchase Price of the related Timeshare Loan or the related
Closing Date Eligible Investment, and (iii) in the case of any substitution,
after payment by the Depositor of the applicable Substitution Shortfall
Amounts, if any, pursuant to Section 4.6 hereof. 

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

                    (c)          In
addition, at the request of the Servicer, on any Payment Date if (i) Available
Funds are sufficient to pay the Required Payments, (ii) the amount on deposit
in the General Reserve Account is at least equal to the General Reserve Account
Required Balance, (iii) no Event of Default has occurred and is continuing, (iv)
the Optional Purchase Limit is greater than zero and (v) the Aggregate
Outstanding Note Balance is not greater than 87.5% of the Aggregate Loan
Balance, the Indenture Trustee shall release or shall consent to the release of
Defaulted Timeshare Loans that have not been purchased, repurchased or
substituted under Section 4.6 hereof from the Lien of the Indenture, without
additional payment. 

                    (d)          In
connection with (a), (b) and (c) above, the Issuer and Indenture Trustee will
execute and deliver such releases, endorsements and assignments as are provided
to it by the Depositor, in each case, without recourse, representation or
warranty, as shall be necessary to vest in the Depositor or its designee, the
legal and beneficial ownership of each Timeshare Loan being released pursuant
to this Section 4.7. The Servicer shall deliver a Request for Release to the
Custodian with respect to the related Timeshare Loan Files and Timeshare Loan
Servicing Files being released pursuant to this Section 4.7, and such files
shall be transferred to the Depositor or its designee. 

          SECTION
4.8.     Appointment of Custodian and Paying Agent.

                    (a)          The
Indenture Trustee may appoint a Custodian to hold all or a portion of the
Timeshare Loan Files as agent for the Indenture Trustee. Each Custodian shall
be a depository institution supervised and regulated by a federal or state
banking authority, shall have combined capital and surplus of at least
$100,000,000, shall be qualified to do business in the jurisdiction in which it
holds any Timeshare Loan File and shall not be the Issuer or an Affiliate of
the Issuer. The initial Custodian shall be U.S. Bank National Association. The
Indenture Trustee shall not be responsible for paying the Custodian Fee or any
other amounts owed to the Custodian. 

                    (b)          The
Issuer hereby appoints the Indenture Trustee as a Paying Agent. The Issuer may
appoint other Paying Agents from time to time. Any such other Paying Agent
shall be appointed by Issuer Order with written notice thereof to the Indenture
Trustee. Any Paying Agent appointed by the Issuer shall be a Person who would
be eligible to be Indenture Trustee hereunder as provided in Section 7.7
hereof. 

          SECTION
4.9.     Sale of Timeshare Loans. 

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

28

ARTICLE V.

SERVICING OF TIMESHARE LOANS

          SECTION
5.1.     Appointment of Servicer and Backup
Servicer; Servicing Standard. 

                    (a)          Subject
to the terms and conditions herein, the Issuer and the Indenture Trustee hereby
appoint Bluegreen as the initial Servicer hereunder. The Servicer shall service
and administer the Timeshare Loans and perform all of its duties hereunder in
accordance with the Servicing Standard. 

                    (b)          Subject
to the terms and conditions herein and in the Backup Servicing Agreement, the
Issuer hereby appoints Concord Servicing Corporation to act as the initial
Backup Servicer hereunder. The Backup Servicer shall service and administer the
Timeshare Loans and perform all of its duties hereunder and under the Backup
Servicing Agreement in accordance with the Servicing Standard. 

          SECTION
5.2.     Payments on the Timeshare Loans. 

                    (a)          The
Servicer shall, in a manner consistent with the Servicing Standard, collect all
payments made under each Timeshare Loan and direct each applicable Obligor to
timely make all payments in respect of his or her Timeshare Loan to the Lockbox
Account maintained at the Lockbox Bank and, with respect to Credit Card
Timeshare Loans, direct each applicable credit card vendor to deposit all
payments in respect of such Credit Card Timeshare Loans to the Credit Card
Account (net of any Servicer Credit Card Processing Costs). 

                    (b)          On
the Closing Date, the Servicer shall cause to be deposited to the Collection
Account all amounts collected and received in respect of the Initial Timeshare
Loans after the Initial Cut-Off Date to the day preceding the Closing Date
(without deduction for any Liquidation Expenses). 

                    (c)          Subject
to subsection (d) below, the Indenture Trustee shall direct the Lockbox Bank to
remit all collections in respect of the Timeshare Loans on deposit in the
Lockbox Account (other than an amount equal to $20,000 that will remain in the
Lockbox Account for administrative purposes) to the Collection Account on each
Business Day via automated repetitive wire. 

                    (d)          Liquidation
Expenses shall be reimbursed as Additional Servicing Compensation to the
Servicer in accordance with Section 3.2(a) hereof. To the extent that the
Servicer has received any Liquidation Expenses as Additional Servicing
Compensation and shall subsequently recover any portion of such Liquidation
Expenses from the related Obligor, the Servicer shall deposit such amounts into
the Collection Account in accordance with Section 5.3(b) hereof. 

                    (e)          The
Servicer agrees that to the extent it receives any amounts in respect of any
insurance policies which are not payable to the Obligor or otherwise necessary
for the intended use, or any other collections relating to the Trust Estate, it
shall deposit such amounts to 

29

 the Collection Account within two Business
Days of receipt thereof (unless otherwise expressly provided herein). 

          SECTION
5.3.     Duties and Responsibilities of the
Servicer. 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

	
          (iv)         contact
 Obligors to effect collections and to discourage delinquencies in the payment
 of amounts owed under the Timeshare Loans and doing so by any lawful means; 

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

	
          (vii)        arranging
 for Liquidations of Timeshare Properties related to Defaulted Timeshare Loans
 and the remarketing of such Timeshare Properties as provided in Section
 5.3(a)(xiii) hereof; 

	
 

	
 

	
 

	
          (viii)          use
 reasonable best efforts to enforce the purchase and substitution obligations
 of the Club Originator under the Transfer Agreement or the Bluegreen Purchase
 Agreement with respect to breaches of representations and warranties related
 to the Timeshare Loans; 

	
 

	
 

	
 

	
          (ix)          refrain
 from modifying, waiving or amending the terms of any Timeshare Loan; provided,
 however, the Servicer may modify, waive or amend a Timeshare Loan for
 which a default on such Timeshare Loan has occurred or is imminent and such
 modification, amendment or waiver will not (i) materially alter the interest
 rate on or the principal balance of such Timeshare Loan, (ii) shorten the 

30

	
 

	
 

	
 

	
final
 maturity of, lengthen the timing of payments of either principal or interest,
 or any other terms of, such Timeshare Loan in any manner which would have a
 material adverse affect on the Noteholders, (iii) adversely affect the
 Timeshare Property underlying such Timeshare Loan or (iv) reduce materially
 the likelihood that payments of interest and principal on such Timeshare Loan
 shall be made when due; provided, further, the Servicer may
 grant a single extension of the final maturity of a Timeshare Loan if the
 Servicer, in its reasonable discretion determines that (A) such Timeshare
 Loan is in default or a default on such Timeshare Loan is likely to occur in
 the foreseeable future and (B) the value of such Timeshare Loan will be
 enhanced by such extension; provided, further, the Servicer
 shall not be permitted to modify, waive or amend the terms of any Timeshare
 Loan if the sum of the Cut-Off Date Loan Balance of such Timeshare Loan and
 the Cut-Off Date Loan Balances of all other Timeshare Loans for which the
 Servicer has modified, waived or amended the terms thereof exceeds 1% of the
 Aggregate Closing Date Collateral Balance; 

	
 

	
 

	
 

	

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

	
 

	
 

	
 

	
          (xi)          to
 the extent that the Custodian Fees or the Lockbox Fees are, in the Servicer’s
 reasonable business judgment, no longer commercially reasonable, use
 commercially reasonable efforts to exercise its rights under the Custodial
 Agreement or the Lockbox Agreement to replace the Custodian or Lockbox Bank,
 as applicable. Any such successor shall be reasonably acceptable to the
 Indenture Trustee; 

	
 

	
 

	
 

	
          (xii)         delivery
 of such information and data to the Backup Servicer as is required under the
 Backup Servicing Agreement; 

	
 

	
 

	
 

	
          (xiii)        in
 the event that a Defaulted Timeshare Loan is not or cannot be released from
 the Lien of the Indenture pursuant to Section 4.7 hereof, the Servicer shall,
 in accordance with the Servicing Standard and the Collection Policy, promptly
 institute collection procedures, which may include, but is not limited to,
 cancellation, termination or foreclosure proceedings or obtaining a
 deed-in-lieu of foreclosure (each, a “Foreclosure
 Property”). Upon the Timeshare Property becoming a Foreclosure
 Property, the Servicer shall cause the Remarketing Agent to promptly attempt
 to remarket such Foreclosure Property in accordance with and pursuant to the
 Remarketing Agreement. The Remarketing Fees due under the Remarketing
 Agreement shall constitute Liquidation Expenses and upon reimbursement to the
 Servicer shall be paid by the Servicer to the Remarketing Agent. 

31

                    (b)          
The Servicer may not sell any of the Foreclosure Property that is an asset of
the Trust Estate except for or as specifically permitted by this Indenture. 

                    (c)          
The Servicer shall, at least once each week, for each applicable Credit Card
Timeshare Loan, deposit to the Credit Card Account, the service charge imposed
by the applicable credit card vendor for processing the payment due from the
Obligor (such amount, the “Servicer Credit
Card Processing Cost”) and shall immediately cause all amounts on
deposit therein to be transferred to the Lockbox Account. With the written
consent of 66-2/3% of the Adjusted Note Balance of each Class of Notes, the
Indenture Trustee shall cause the Lockbox Bank to restrict the Servicer’s
access and rights to the Credit Card Account, and shall instruct the Indenture
Trustee to instruct the Lockbox Bank to sweep all amounts on deposit in the
Credit Card Account to be transferred to the Lockbox Account on a daily basis. The
Servicer hereby agrees that if such direction is given by the Noteholders, the
Servicer shall not provide any contrary instruction to the Lockbox Bank with
respect to the Credit Card Account. 

                    (d)          
For so long as Bluegreen or any of its Affiliates controls the Resorts, the
Servicer shall use commercially reasonable best efforts to cause the Club
Managing Entity to maintain or cause to maintain the Resorts in good repair,
working order and condition (ordinary wear and tear excepted). 

                    (e)          
For so long as Bluegreen or any of its Affiliates controls the Resorts, the
manager, related management contract and master marketing and sale contract (if
applicable) for each Resort at all times shall be reasonably satisfactory to
the Noteholders representing at least 66-2/3% of the Adjusted Note Balance of
each Class of Notes. For so long as Bluegreen or any of its Affiliates controls
the Timeshare Association for a Resort, and Bluegreen or an Affiliate thereof
is the manager, the related management contract and master marketing and sale
contract, if applicable, may be amended or modified in a manner that reasonably
may be determined to have a material adverse effect on the Noteholders only
with the prior written consent of the Noteholders representing at least 66-2/3%
of the Adjusted Note Balance of each Class of Notes, which consent shall not be
unreasonably withheld or delayed. Notwithstanding the foregoing sentence, for
so long as Bluegreen or any of its Affiliates controls the Timeshare
Association for a Resort, and Bluegreen or an Affiliate thereof is the manager,
Bluegreen shall not permit any modification or amendment to the related
management contract and master marketing and sale contract, if applicable, to
cause the Issuer to fail to be treated as a “qualified special purpose entity”
as defined in Statement of Financial Accounting Standards No. 140 (or any
successor Statement of Financial Accounting Standards). 

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

32

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

                    (h)          
Except as contemplated by the Transaction Documents, the Servicer shall not,
and shall not permit the Club Managing Entity to, encumber, pledge or otherwise
grant a Lien or security interest in and to the Reservation System (including,
without limitation, all hardware, software and data in respect thereof) and
furthermore agrees, and shall cause the Club Managing Entity, to use
commercially reasonable efforts to keep the Reservation System operational, not
to dispose of the same and to allow the Club the use of, and access to, the
Reservation System in accordance with the terms of the Club Management
Agreement. Notwithstanding the foregoing, should the Club Managing Entity determine
that it is desirable to replace the existing hardware and software related to
the Reservation System, it will be allowed to enter into a lease or finance
arrangement in connection with the lease or purchase of such hardware and
software. 

                    (i)          
The Servicer shall comply in all material respects with the Collection Policy
in effect on the Closing Date (or, as amended from time to time with the
consent of the Noteholders representing at least 66-2/3% of the Adjusted Note
Balance of each Class of Notes) and with the terms of the Timeshare Loans. 

          SECTION
5.4.      Servicer Events of Default. 

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

	
 

	
 

	
 

	
          (i)          
  any failure by the Servicer to make any required payment, transfer or deposit
  when due hereunder and the continuance of such default for a period of two
  Business Days; provided, however, that the period within which
  the Servicer shall make any required payment, transfer or deposit shall be
  extended to such longer period as is appropriate in the event of a Force
  Majeure Delay, provided, further, that such longer period shall
  not exceed seven Business Days; 

	
 

	
 

	
 

	
          (ii)          
  any failure by the Servicer to provide any required report within five
  Business Days of when such report is required to be delivered hereunder; provided,
  however, that the period within which the Servicer shall provide any
  report shall be 

33

	
 

	
 

	
 

	
extended to
  such longer period as is appropriate in the event of a Force Majeure Delay, provided,
  further, that such longer period shall not exceed ten Business Days; 

	
 

	
 

	
 

	
          (iii)          
  any failure by the Servicer to observe or perform in any material respect any
  other covenant or agreement which has a material adverse effect on the
  Noteholders and such failure is not remedied within 30 days (or, if the
  Servicer shall have provided evidence satisfactory to the Indenture Trustee
  that such covenant cannot be cured in the 30-day period and that it is
  diligently pursuing a cure, 60 days), after the earlier of (x) the Servicer
  first acquiring Knowledge thereof and (y) the Indenture Trustee’s giving
  written notice thereof to the Servicer; 

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

34

	
 

	
 

	
 

	
          (vii)          
  the Servicer (if Bluegreen) fails to have at least $75,000,000 in financing
  facilities in place, or 

	
 

	
 

	
 

	
          (viii)          
  a Trigger Event that remains uncured for three consecutive Due Periods. 

                    If
any Servicer Event of Default shall have occurred and not been waived hereunder
or there shall have been a material default by the Servicer of a material
obligation of the Servicer for which (i) the Servicer has received written
notice of such default, (ii) such default has not been cured by the Servicer or
waived in writing and the period for cure has expired and (iii) such default
would result in a liability to the Servicer in excess of 5% of the Servicer’s
Equity at such time, the Indenture Trustee may, and upon notice from
Noteholders representing at least 66-2/3% of the Adjusted Note Balance of each
Class of Notes shall, terminate, on behalf of the Noteholders, by notice in
writing to the Servicer, all of the rights and obligations of the Servicer, as
Servicer under this Indenture. The Indenture Trustee shall immediately give
written notice of such termination to the Backup Servicer. 

                    Unless
consented to by the Noteholders representing at least 66-2/3% of the Adjusted
Note Balance of each Class of Notes, the Issuer may not waive any Servicer
Event of Default. 

                    (b)          
Replacement of Servicer. From and after the receipt by the Servicer of
such written termination notice or the resignation of the Servicer pursuant to
Section 5.10 hereof, all authority and power of the Servicer under this
Indenture, whether with respect to the Timeshare Loans or otherwise, shall,
pass to and be vested in the Indenture Trustee, and the Indenture Trustee shall
be the successor Servicer hereunder and the duties and obligations of the
Servicer shall terminate. The Servicer shall perform such actions as are
reasonably necessary to assist the Indenture Trustee and the Backup Servicer in
such transfer. If the Servicer fails to undertake such action as is reasonably
necessary to effectuate such a transfer, the Indenture Trustee is hereby
authorized and empowered to execute and deliver, on behalf of and at the
expense of the Servicer, as attorney-in-fact or otherwise, any and all
documents and other instruments, and to do or accomplish all other acts or things
reasonably necessary to effect the purposes of such notice of termination. The
Servicer agrees that if it is terminated pursuant to this Section 5.4, it shall
promptly (and, in any event, no later than five Business Days subsequent to its
receipt of the notice of termination from the Indenture Trustee) provide the
Indenture Trustee, the Backup Servicer or their respective designees (with
reasonable costs being borne by the Servicer) with all documents and records
(including, without limitation, those in electronic form) reasonably requested
by it to enable the Indenture Trustee to assume the Servicer’s functions
hereunder and for the Backup Servicer to assume the functions required by the
Backup Servicing Agreement, and the Servicer shall cooperate with the Indenture
Trustee in effecting the termination of the Servicer’s responsibilities and
rights hereunder and the assumption by a successor of the Servicer’s
obligations hereunder, including, without limitation, the transfer within one
Business Day to the Indenture Trustee or its designee for administration by it
of all cash amounts which shall at the time or thereafter received by it with
respect to the Timeshare Loans (provided, however, that the Servicer shall
continue to be entitled to receive all amounts accrued or owing to it under
this Indenture on or prior to the date of such termination). The Indenture
Trustee shall be entitled to renegotiate the Servicing Fee; provided, however,
no  

35

change to the
Servicing Fee may be made unless the Indenture Trustee shall have received the
written consent of Noteholders representing at least 66-2/3% of the Adjusted
Note Balance of each Class of Notes. Notwithstanding anything herein to the
contrary, in no event shall the Indenture Trustee or Bluegreen be liable for
any Servicing Fee or for any differential in the amount of the Servicing Fee
paid hereunder and the amount necessary to induce any successor Servicer to
assume the obligations of Servicer under this Indenture. 

                    The
Indenture Trustee shall be entitled to be reimbursed by the Servicer, (or by
the Trust Estate to the extent set forth in Section 3.4(a)(i) or Section
6.6(a)(i) hereof) if the Servicer is unable to fulfill its obligations
hereunder for all Servicer Termination Costs. 

                    The
successor Servicer shall have (i) no liability with respect to any obligation
which was required to be performed by the terminated Servicer prior to the date
that the successor Servicer becomes the Servicer or any claim of a third party
based on any alleged action or inaction of the terminated Servicer, (ii) no
obligation to perform any repurchase obligations, if any, of the Servicer,
(iii) no obligation to pay any taxes required to be paid by the Servicer, (iv)
no obligation to pay any of the fees and expenses of any other party involved
in this transaction that were incurred by the prior Servicer and (v) no
liability or obligation with respect to any Servicer indemnification
obligations of any prior Servicer including the original Servicer. 

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

                    The
Indenture Trustee may appoint an Affiliate as the successor Servicer and the
provisions of this Section 5.4(b) related to the Indenture Trustee shall apply
to such Affiliate. 

                    (c)          
Any successor Servicer, including the Indenture Trustee, shall not be deemed to
be in default or to have breached its duties as successor Servicer hereunder if
the predecessor Servicer shall fail to deliver any required deposit to the
Collection Account or otherwise fail to cooperate with, or take any actions
required by such successor Servicer related to the transfer of servicing
hereunder. 

36

          SECTION
5.5.      Accountings; Statements and Reports. 

                    (a)          
Monthly Servicer Report. Not later than two Business Days prior to the
Payment Date, the Servicer shall deliver to the Issuer, the Indenture Trustee,
the Rating Agency and the Initial Purchaser, a report (the “Monthly Servicer Report”) substantially in
the form of Exhibit D hereto, detailing certain activity relating to the
Timeshare Loans. The Monthly Servicer Report shall be completed with the
information specified therein for the related Due Period and shall contain such
other information as may be reasonably requested by the Issuer, the Indenture
Trustee or the Initial Purchaser in writing at least five Business Days prior
to such Determination Date. Each such Monthly Servicer Report shall be
accompanied by an Officer’s Certificate of the Servicer in the form of Exhibit
E hereto, certifying the accuracy of the computations reflected in such Monthly
Servicer Report. 

                    (b)          
Certification as to Compliance. The Servicer shall deliver to the
Issuer, the Indenture Trustee, the Rating Agency and the Initial Purchaser, an
Officer’s Certificate on or before June 30 of each year commencing in 2009: (x)
to the effect that a review of the activities of the Servicer during the
preceding calendar year, and of its performance under this Indenture during
such period has been made under the supervision of the officer executing such Officer’s
Certificate with a view to determining whether during such period, to the best
of such officer’s knowledge, the Servicer had performed and observed all of its
obligations under this Indenture, and (y) either (A) stating that based on such
review, no Servicer Event of Default is known to have occurred and is
continuing, or (B) if such a Servicer Event of Default is known to have
occurred and is continuing, specifying such Servicer Event of Default and the
nature and status thereof. 

                    (c)          
Annual Accountants’ Reports. On or before each June 30 of each year
commencing in 2009, the Servicer shall (i) cause a firm of independent public
accountants to furnish a certificate or statement (and the Servicer shall
provide a copy of such certificate or statement to the Issuer, the Indenture
Trustee, the Rating Agency and the Initial Purchaser), to the effect that (1)
such firm has examined and audited the Servicer’s servicing controls and
procedures for the previous calendar year and that such independent public
accountants have examined certain documents and records (including computer
records) and servicing procedures of the Servicer relating to the Timeshare
Loans, (2) they have examined the most recent Monthly Servicer Report prepared
by the Servicer and three other Monthly Servicer Reports chosen at random by
such firm and compared such Monthly Servicer Reports with the information
contained in such documents and records, (3) their examination included such
tests and procedures as they considered necessary in the circumstances, (4)
their examinations and comparisons described under clauses (1) and (2) above
disclosed no exceptions which, in their opinion, were material, relating to
such Timeshare Loans or such Monthly Servicer Reports, or, if any such
exceptions were disclosed thereby, setting forth such exceptions which, in
their opinion, were material and (5) on the basis of such examinations and
comparisons, such firm is of the opinion that the Servicer has, during the
relevant period, serviced the Timeshare Loans in compliance with this Indenture
and the other Transaction Documents in all material respects and that such
documents and records have been maintained in accordance with this Indenture
and the other Transaction Documents in all material respects, except in each
case for (A) such exceptions as such firm shall believe to be immaterial and
(B) such other exceptions as shall be set forth in such written report. The
report will also indicate that such firm is independent of the Servicer 

37

within the
meaning of the Code of Professional Ethics of the American Institute of
Certified Public Accountants. In the event such independent public accountants
require the Indenture Trustee to agree to the procedures to be performed by such
firm in any of the reports required to be prepared pursuant to this Section
5.5(c), the Servicer shall direct the Indenture Trustee in writing to so agree;
it being understood and agreed that the Indenture Trustee will deliver such
letter of agreement in conclusive reliance upon the direction of the Servicer,
and the Indenture Trustee has not made any independent inquiry or investigation
as to, and shall have no obligation or liability in respect of, the
sufficiency, validity or correctness of such procedures. 

                    (d)          
Report on Proceedings and Servicer Event of Default. (i) Promptly upon a
Responsible Officer of the Servicer’s obtaining Knowledge of any proposed or
pending investigation of it by any Governmental Authority or any court or
administrative proceeding which involves or is reasonably likely to have a
material and adverse effect affecting the properties, business, prospects,
profits or conditions (financial or otherwise) of the Servicer and its
subsidiaries, as a whole, the Servicer shall send written notice specifying the
nature of such investigation or proceeding and what action the Servicer is
taking or proposes to take with respect thereto and evaluating its merits, or
(ii) immediately upon obtaining Knowledge of the existence of any condition or
event which constitutes a Servicer Event of Default, the Servicer shall send
written notice to the Issuer, the Indenture Trustee and the Initial Purchaser
describing its nature and period of existence and what action the Servicer is
taking or proposes to take with respect thereto. The Issuer, the Indenture
Trustee and the Initial Purchaser acknowledge that if any condition or event
referred to in subparagraph (i) above has been disclosed in the Servicer’s
periodic filings with the Securities and Exchange Commission on a timely basis,
that such disclosure will satisfy the requirements of subparagraph (i) above. 

          SECTION
5.6.      Records. 

                    The
Servicer shall maintain all data for which it is responsible (including,
without limitation, computerized tapes or disks) relating directly to or
maintained in connection with the servicing of the Timeshare Loans (which data
and records shall be clearly marked to reflect that the Timeshare Loans have
been Granted to the Indenture Trustee on behalf of the Noteholders and
constitute property of the Trust Estate) at the address specified in Section
13.3 hereof or, upon 15 days’ notice to the Issuer and the Indenture Trustee,
at such other place where any Servicing Officer of the Servicer is located (or
upon 24 hours’ written notice if an Event of Default or Servicer Event of
Default shall have occurred). 

          SECTION
5.7.      Fidelity Bond and Errors and Omissions
Insurance. 

                    The
Servicer shall maintain or cause to be maintained fidelity bond and errors and
omissions insurance with respect to the Servicer in such form and in amounts as
is customary for institutions acting as custodian of funds in respect of
timeshare loans or receivables on behalf of institutional investors; provided
that such insurance shall be in a minimum amount of $1,000,000 per policy and
shall name the Indenture Trustee as an additional insured. No provision of this
Section 5.7 requiring such fidelity bond or errors and omissions insurance
shall diminish or relieve the Servicer from its duties and obligations as set
forth in this Indenture. The Servicer shall be deemed to have complied with
this provision if one of its respective Affiliates has such fidelity bond or errors
and omissions insurance coverage and, by the terms of such fidelity bond 

38

or errors and
omissions insurance policy, the coverage afforded thereunder extends to the
Servicer. Upon a request of the Indenture Trustee, the Servicer shall deliver
to the Indenture Trustee, a certification evidencing coverage under such
fidelity bond and the errors and omissions insurance. Any such fidelity bond or
errors and omissions insurance policy shall not be canceled or modified in a
materially adverse manner without ten Business Days’ prior written notice to
the Indenture Trustee, provided, that the Servicer agrees to use commercially
reasonable efforts to require the applicable insurer to provide ten days’ prior
written notice of any cancellation or modification initiated by such insurer.  

          SECTION
5.8.      Merger or Consolidation of the Servicer.

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

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

          SECTION
5.9.      Sub-Servicing. 

                    (a)          
The Servicer may enter into one or more sub-servicing agreements with a
sub-servicer upon delivery to the Indenture Trustee of a written confirmation
from the Rating Agencies that the execution of such sub-servicing agreement and
the retention of such sub-servicer would not result in the qualification,
downgrade or withdrawal of any rating assigned to a Class of Notes. References
herein to actions taken or to be taken by the Servicer in servicing the
Timeshare Loans include actions taken or to be taken by a sub-servicer on
behalf of the Servicer. Any sub-servicing agreement will be upon such terms and
conditions as the Servicer may reasonably agree and as are not inconsistent
with this Indenture. The Servicer shall be solely responsible for any
sub-servicing fees due and payable to such sub-servicer. 

39

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

          SECTION
5.10.      Servicer Resignation. 

                    The
Servicer shall not resign from the duties and obligations hereby imposed on it
under this Indenture unless and until (i) a successor servicer, acceptable to
the Issuer, the Indenture Trustee and the Noteholders representing at least
66-2/3% of the Adjusted Note Balance of each Class of Notes, enters into an
agreement in form and substance satisfactory to the Indenture Trustee and the
Noteholders representing at least 66-2/3% of the Adjusted Note Balance of each
Class of Notes, which contains an assumption by such successor servicer of the
due and punctual performance and observance of each covenant and condition to
be performed or observed by the Servicer under this Indenture from and after
the date of assumption, (ii) the Issuer, the Indenture Trustee and Noteholders
representing at least 66-2/3% of the Adjusted Note Balance of each Class of
Notes consent to the assumption of the duties, obligations and liabilities of
this Indenture by such successor Servicer, and (iii) the ratings of the Notes
will not be qualified, downgraded or withdrawn (as evidenced by a letter from
the Rating Agency to the Indenture Trustee to such effect, which letter shall
be obtained at the expense of the Servicer, without right of reimbursement).
Upon such resignation, the Servicer shall comply with Section 5.4(b) hereof. 

                    Except
as provided in the immediately preceding paragraph or elsewhere in this
Indenture, or as provided with respect to the survival of indemnifications
herein, the duties and obligations of a Servicer under this Indenture shall
continue until this Indenture shall have been terminated as provided herein.
The duties and obligations of a Servicer hereunder shall survive the exercise
by the Indenture Trustee of any right or remedy under this Indenture or the
enforcement by the Indenture Trustee of any provision of this Indenture. 

          SECTION
5.11.      Fees and Expenses. 

                    As
compensation for the performance of its obligations under this Indenture, the
Servicer shall be entitled to receive on each Payment Date, from amounts on
deposit in the Collection Account and in the priorities described in Sections
3.4 and 6.6 hereof, the Servicing Fee and any Additional Servicing Compensation.
Other than Liquidation Expenses, the Servicer shall pay all expenses incurred
by it in connection with its servicing activities hereunder. 

          SECTION
5.12.      Access to Certain Documentation. 

                    Upon
ten Business Days’ prior written notice (or, one Business Day’s prior written
notice after the occurrence and during the continuance of an Event of Default
or a Servicer Event of Default), the Servicer will, from time to time during
regular business hours, as requested by the Issuer, the Indenture Trustee or
any Noteholder and, prior to the occurrence of a Servicer Event of Default, at
the expense of the Issuer or such Noteholder and upon the occurrence and
continuance of a Servicer Event of Default, at the expense of the Servicer, permit

40

the Issuer,
the Indenture Trustee or any Noteholder or its agents or representatives (i) to
examine and make copies of and abstracts from all books, records and documents
(including, without limitation, computer tapes and disks) in the possession or
under the control of the Servicer relating to the servicing of the Timeshare
Loans serviced by it and (ii) to visit the offices and properties of the
Servicer for the purpose of examining such materials described in clause (i)
above, and to discuss matters relating to the Timeshare Loans with any of the
officers, employees or accountants of the Servicer having knowledge of such
matters. Nothing in this Section 5.12 shall affect the obligation of the
Servicer to observe any applicable law prohibiting disclosure of information
regarding the Obligors, and the failure of the Servicer to provide access to
information as a result of such obligation shall not constitute a breach of
this Section 5.12. The Servicer may require the Issuer, the Indenture Trustee or
any Noteholder or its agents or representatives to execute certain agreements
in order to comply with applicable privacy laws. 

          SECTION
5.13.      No Offset. 

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

          SECTION
5.14.      Account Statements. 

                    In
connection with the Servicer’s preparation of the Monthly Servicer Reports, the
Indenture Trustee agrees to deliver to the Servicer a monthly statement
providing account balances of each of the Trust Accounts. 

          SECTION
5.15.      Indemnification; Third Party Claim. 

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

          SECTION
5.16.      Backup Servicer. 

41

                    (a)          
Backup Servicing Agreement. The Issuer, the Indenture Trustee, the
Servicer, the Depositor and the Backup Servicer hereby agree to execute the
Backup Servicing Agreement. The Backup Servicer shall be responsible for each
of the duties and obligations imposed upon it by the provisions of the Backup
Servicing Agreement and shall have no duties or obligations under any
Transaction Document to which it is not a party. 

                    (b)          
Termination of Servicer; Cooperation. In the event that the Servicer is
terminated or resigns in accordance with the terms of this Indenture, the
Backup Servicer agrees to continue to perform its duties and obligations
hereunder and in the Backup Servicing Agreement without interruption. The
Backup Servicer agrees to cooperate in good faith with any successor Servicer
to effect a transition of the servicing obligations by the Servicer to any
successor Servicer. The Indenture Trustee agrees to provide such information
regarding the Trust Accounts as the Backup Servicer shall require to produce
the Monthly Servicer Report on and after the Assumption Date. 

                    (c)          
Backup Servicer Duties After Assumption Date. In the event that the
Servicer is terminated or resigns in accordance with this Indenture, the Backup
Servicer agrees that it shall undertake those servicing duties and obligations
as set forth in and subject to Section 2 and Schedule V of the Backup Servicing
Agreement. Notwithstanding Section 5.9 hereof, so long as Concord Servicing
Corporation is the Backup Servicer, the Indenture Trustee, as successor
Servicer, will not be obligated or liable for the servicing and administration
activities to the extent that the Backup Servicer is responsible for such
activities under the Backup Servicing Agreement. 

                    (d)          
Backup Servicing Fee. Prior to the Assumption Date, the Backup Servicer
shall receive its Backup Servicing Fee in accordance with Sections 3.4 or 6.6
hereof, as applicable. On and after the Assumption Date, the Indenture Trustee,
as successor Servicer, will be obligated to distribute the Backup Servicing Fee
to the Backup Servicer from amounts received by the Indenture Trustee in
respect of the Servicing Fee. 

                    (e)          
Termination of Backup Servicer. Notwithstanding anything to the contrary
herein, the Indenture Trustee shall have the right to remove the Backup
Servicer with or without cause at any time and replace the Backup Servicer
pursuant to the provisions of the Backup Servicing Agreement. In the event that
the Indenture Trustee shall exercise its rights to remove and replace Concord
Servicing Corporation as Backup Servicer or Concord Servicing Corporation shall
have terminated the Backup Servicing Agreement in accordance with the terms
thereof, Concord Servicing Corporation shall have no further obligation to
perform the duties of the Backup Servicer under this Indenture. In the event of
a termination of the Backup Servicing Agreement, the Indenture Trustee shall
appoint a successor Backup Servicer reasonably acceptable to the Indenture
Trustee. Upon the termination or resignation of the Backup Servicer, the
Indenture Trustee shall be deemed to represent, warrant and covenant that it
will service or engage a subservicer to perform each of the servicing duties
and responsibilities described in this Indenture. 

          SECTION
5.17.      Aruba Notices. Within 30 days of the
Closing Date (with respect to the Initial Timeshare Loans that are Aruba Club
Loans) and the related Transfer Date (with respect to a Subsequent Timeshare
Loan or Qualified Substitute Timeshare Loan that is an Aruba 

42

Club Loan),
the Servicer shall confirm that notices have been mailed out to each related
Obligor that such Timeshare Loan has ultimately been transferred and assigned
to the Issuer and pledged to the Indenture Trustee, in trust, for the benefit
of the Noteholders. Such notice may include any notice or notices that the
Aruba Originator’s predecessors in title to the Timeshare Loan may give to the
same Obligor with respect to any transfers and assignments of the Timeshare
Loan by such predecessors. Such notice shall be in the form attached hereto as Exhibit
H, as the same may be amended, revised or substituted by the Indenture
Trustee and the Servicer from time to time. 

          SECTION
5.18.           Recordation.
As soon as practicable after the Closing Date or Transfer Date, as applicable,
but in no event later than ten Business Days after receipt by the Servicer of
the original Mortgage, the Servicer shall cause the Assignment of Mortgage in
respect of each Timeshare Loan to be sent for recording to the appropriate
offices. The Servicer agrees to cause all evidences of recordation to be
delivered to the Custodian to be held as part of the Timeshare Loan Files. 

ARTICLE VI.

EVENTS OF DEFAULT; REMEDIES

          SECTION
6.1.      Events of Default. 

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

                    (a)          
a default in the making of Interest Distribution Amounts, Principal Distribution
Amounts, Deferred Interest Amounts or any other payments in respect of any Note
when such become due and payable, and continuance of such default for three
Business Days; or 

                    (b)          
a non-monetary default in the performance, or breach, of any covenant of the
Issuer in this Indenture (other than a covenant dealing with a default in the
performance of which, or the breach of which, is specifically dealt with
elsewhere in this Section 6.1), the continuance of such default or breach for a
period of 30 days (or, if the Issuer shall have provided evidence satisfactory
to the Indenture Trustee that such covenant cannot be cured in the 30-day
period and that it is diligently pursuing a cure, 60 days) after the earlier of
(x) the Issuer first acquiring Knowledge thereof, and (y) the Indenture
Trustee’s giving written notice thereof to the Issuer; provided, however,
that if such default or breach is in respect of the negative covenants
contained in Section 8.6(a)(i) or (ii) hereof, there shall be no grace period
whatsoever; or 

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

43

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

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

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

                    (g)          
the impairment of the validity of any security interest of the Indenture
Trustee in the Trust Estate in any material respect, except as expressly
permitted hereunder, or the creation of any material encumbrance on or with
respect to the Trust Estate or any portion thereof not otherwise permitted,
which is not stayed or released within ten days of the Issuer having Knowledge of
its creation; or 

                    (h)          
the failure by the Club Originator to repurchase any Defective Timeshare Loan
or provide a Qualified Substitute Timeshare Loan for a Defective Timeshare Loan
to the extent required under the terms of the Transfer Agreement or the
Bluegreen Purchase Agreement; or 

                    (i)          
the occurrence and continuance of a Servicer Event of Default that is uncured
for two consecutive Due Periods. 

          SECTION
6.2.      Acceleration of Maturity; Rescission and
Annulment. 

                    (a)          
Upon the occurrence and continuance of an Event of Default, if (i) such Event
of Default of the kind specified in Section 6.1(d) or Section 6.1(e) hereof
occurs, (ii) an Event of Default of the kind specified in Section 6.1(a) hereof
occurs and either (x) the Indenture 

44

Trustee has,
in its good faith judgment, determined that the value of the assets comprising
the Trust Estate is less than the Aggregate Outstanding Note Balance or (y) such
Event of Default continues for two consecutive Payment Dates, then each Class
of Notes shall automatically become due and payable at its Outstanding Note
Balance together with all accrued and unpaid interest thereon. 

                    (b)          
Upon the occurrence and continuance of an Event of Default, if such Event of
Default is of the kind specified in Section 6.1(a) hereof (other than as
described in Section 6.2(a) above), the Indenture Trustee shall, upon notice
from Noteholders representing at least 66-2/3% of the Adjusted Note Balance of
the most senior Class of Notes then Outstanding (and, if payment of interest
and principal on the most senior Class of Notes then Outstanding is current,
the consent of the Noteholders representing at least 66-2/3% of the Adjusted
Note Balance of the most senior Class of Notes which has failed to receive one
or more payments of interest or principal), declare each Class of Notes to be
immediately due and payable at its Outstanding Note Balance plus all accrued
and unpaid interest thereon. 

                    (c)          
Upon the occurrence and continuance of an Event of Default, if such Event of
Default (other than an Event of Default of the kind described in Sections
6.2(a) or (b) hereof) shall occur and is continuing, the Indenture Trustee
shall, upon notice from Noteholders representing at least 66-2/3% of the
Adjusted Note Balance of the most senior Class of Notes then Outstanding,
declare each Class of Notes to be immediately due and payable at its Outstanding
Note Balance plus all accrued and unpaid interest thereon. 

                    (d)          
Upon any such declaration or automatic acceleration, the Outstanding Note
Balance of each Class of Notes together with all accrued and unpaid interest thereon
shall become immediately due and payable without presentment, demand, protest
or other notice of any kind, all of which are hereby waived by the Issuer. The
Indenture Trustee shall promptly send a notice of any declaration or automatic
acceleration to the Rating Agency. 

                    (e)          
At any time after such a declaration of acceleration has been made but before a
judgment or decree for payment of the money due has been obtained by the
Indenture Trustee as hereinafter in this Article VI provided, the Noteholders
representing at least 66-2/3% of the Adjusted Note Balance of the most senior
Class Outstanding (and, if the consent of another Class shall have been
required for such declaration, Noteholders representing at least 66-2/3% of the
Adjusted Note Balance of such Class) by written notice to the Issuer and the
Indenture Trustee, may rescind and annul such declaration and its consequences
if:  

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(i)

	
the Issuer has paid or
deposited with the Indenture Trustee a sum sufficient to pay:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(1)

	
all
  principal due on any Class of Notes which has become due otherwise than by
  such declaration of acceleration and interest thereon from the date when the
  same first became due until the date of payment or deposit, 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(2)

	
all interest
  due with respect to any Class of Notes and, to the extent that payment of
  such interest is lawful, interest upon overdue 

45

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
interest
 from the date when the same first became due until the date of payment or
 deposit at a rate per annum equal to the applicable Note Rate, and

	
 

	
 

	
 

	
 

	
 

	
 

	
(3)

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

	
 

	

and

	
 

	
 

	
 

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

                    (f)
          An automatic
acceleration under Section 6.2(a) hereof may only be rescinded and annulled by
Noteholders representing at least 66-2/3% of the Adjusted Note Balance of each
Class of Notes then Outstanding. 

                    (g)          
Notwithstanding Section 6.2(d) and (e) hereof, (i) if the Indenture Trustee
shall have commenced making payments as described in Section 6.6 hereof, no
acceleration may be rescinded or annulled and (ii) no rescission shall affect
any subsequent Events of Default or impair any rights consequent thereon. 

          SECTION
6.3.      Remedies.

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

                    (b)
          Following
any acceleration of the Notes, the Indenture Trustee shall have all of the
rights, powers and remedies with respect to the Trust Estate as are available
to secured parties under the UCC or other applicable law, subject to the
limitations set forth in subsection (d) below and provided such action is not
inconsistent with any other provision of this Indenture. Such rights, powers
and remedies may be exercised by the Indenture Trustee in its own name as
trustee of an express trust. 

                    (c)
          If an Event of
Default specified in Section 6.1(a) hereof occurs and is continuing, the
Indenture Trustee is authorized to recover judgment in its own name and as
trustee of an express trust against the Issuer for the Aggregate Outstanding
Note Balance and interest remaining unpaid with respect to the Notes. 

                    (d)
          Subject to the
provisions set forth herein, if an Event of Default occurs and is continuing,
the Indenture Trustee may, in its discretion, and at the instruction of the 

46

Noteholders
representing at least 66-2/3% of the Adjusted Note Balance of each Class of
Notes shall, proceed to protect and enforce its rights and the rights of the
Noteholders by such appropriate judicial or other proceedings as the Indenture
Trustee shall deem most effectual to protect and enforce any such rights,
whether for the specific enforcement of any covenant or agreement in this
Indenture or in aid of the exercise of any power granted herein, or to enforce
any other proper remedy. The Indenture Trustee shall notify the Issuer, the
Rating Agency, the Servicer and the Noteholders of any such action. 

                    (e)
          If the Indenture
Trustee shall have received instructions, within 45 days from the date notice
pursuant to Section 6.3(a) hereof is first given, from Noteholders representing
at least 66-2/3% of the Adjusted Note Balance of each Class of Notes that such
Persons approve of or request the liquidation of all of the Trust Estate, the
Indenture Trustee shall to the extent lawful, promptly sell, dispose of or
otherwise liquidate all of the Trust Estate in a commercially reasonable manner
and on commercially reasonable terms, which shall include the solicitation of
competitive bids from third parties including any Noteholder (other than
Bluegreen or any Affiliates thereof), such bids to be approved by the
Noteholders representing at least 66-2/3% of the Adjusted Note Balance of each
Class of Notes. The Indenture Trustee may obtain a prior determination from any
conservator, receiver or liquidator of the Issuer that the terms and manner of
any proposed sale, disposition or liquidation are commercially reasonable.
Notwithstanding anything to the contrary herein, neither Bluegreen nor any of
its Affiliates may make a bid in connection with the disposition of the
Timeshare Loans in accordance with this Section 6.3(d). 

          SECTION
6.4.           Indenture
Trustee May File Proofs of Claim. 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
 

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

47

and any
custodian, receiver, liquidator, assignee, trustee, sequestrator or other
similar official in any such judicial proceeding is hereby authorized by each
Noteholder to make such payments to the Indenture Trustee and to pay to the
Indenture Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Indenture Trustee and any predecessor
Indenture Trustee, their agents and counsel, and any other amounts due the
Indenture Trustee and any predecessor Indenture Trustee under Section 7.6
hereof. 

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

          SECTION
6.5.      Indenture Trustee May Enforce Claims
Without Possession of Notes. 

                    All
rights of action and claims under this Indenture, the Notes, the Timeshare
Loans or the other assets constituting the Trust Estate may be prosecuted and
enforced by the Indenture Trustee without the possession of any of the Notes or
the production thereof in any proceeding relating thereto, and any such
proceeding instituted by the Indenture Trustee shall be brought in its own name
as trustee of an express trust, and any recovery of judgment shall, after
provisions for the payment of reasonable compensation, expenses, disbursements
and advances of the Indenture Trustee and any predecessor Indenture Trustee,
their agents and counsel, be for the benefit of the Noteholders in respect of
which such judgment has been recovered, and distributed pursuant to the
priorities contemplated by Section 3.4 and Section 6.6 hereof, as applicable. 

          SECTION
6.6.     Application of Money Collected. 

                    (a)
          If a Payment
Default Event shall have occurred and the Indenture Trustee has not yet
effected the remedies under Section 6.3(d) and Section 6.16 hereof, any money
collected by the Indenture Trustee in respect of the Trust Estate and any other
money that may be held thereafter by the Indenture Trustee as security for the
Notes, including, without limitation, the amounts on deposit in the General Reserve
Account, shall be applied in the following order on each Payment Date: 

	
 

	
 

	
 

	
          (i)         to the Indenture
 Trustee, any unpaid Indenture Trustee Fees and any extraordinary
 out-of-pocket expenses of the Indenture Trustee (up to $10,000 per Payment
 Date and no more than a cumulative total of $100,000 for Servicer Termination
 Costs), incurred and not reimbursed as of such date; 

	
 

	
 

	
 

	
          (ii)         to
 the Owner Trustee, any accrued and unpaid Owner Trustee Fees; 

	
 

	
 

	
 

	
          (iii)        to
 the Administrator, any accrued and unpaid Administrator Fees; 

	
 

	
 

	
 

	
          (iv)       
 to the Custodian, any accrued and unpaid Custodian Fees; 

	
 

	
 

	
 

	
          (v)         to
 the Lockbox Bank, any accrued and unpaid Lockbox Fees;

48

	
 

	
 

	
 

	
          (vi)
      to the Servicer, any accrued and unpaid
 Servicing Fees; 

	
 

	
 

	
 

	
          (vii)
     to the Backup Servicer, any accrued and unpaid
 Backup Servicing Fees (less any amounts received from the Indenture Trustee,
 as successor Servicer); 

	
 

	
 

	
 

	
        
 (viii)     to the Class A Noteholders, the Class A
 Interest Distribution Amount; 

	
 

	
 

	
 

	
          (ix)      
 to the Class B Noteholders, the Class B Interest Distribution Amount; 

	
 

	
 

	
 

	
          (x)       
 to the Class C Noteholders, the Class C Interest Distribution Amount; 

	
 

	
 

	
 

	
          (xi)      
 to the Class D Noteholders, the Class D Interest Distribution Amount; 

	
 

	
 

	
 

	
          (xii)
      to the Class E Noteholders, the Class E
 Interest Distribution Amount; 

	
 

	
 

	
 

	
          (xiii)
     to the Class F Noteholders, the Class F
 Interest Distribution Amount; 

	
 

	
 

	
 

	
          (xiv)
     to the Class A Noteholders, all remaining
 amounts until the Outstanding Note Balance of the Class A Notes is reduced to
 zero; 

	
 

	
 

	
 

	
          (xv)
      to the Class A Noteholders, the Deferred
 Interest Amount for such Class, if any; 

	
 

	
 

	
 

	
         (xvi)     
 to the Class B Noteholders, all remaining amounts until the Outstanding Note
 Balance of the Class B Notes is reduced to zero; 

	
 

	
 

	
 

	
          (xvii)
    to the Class B Noteholders, the Deferred
 Interest Amount for such Class, if any; 

	
 

	
 

	
 

	
          (xviii)
    to the Class C Noteholders, all remaining
 amounts until the Outstanding Note Balance of the Class C Notes is reduced to
 zero; 

	
 

	
 

	
 

	
          (xix)
      to the Class C Noteholders, the Deferred
 Interest Amount for such Class, if any; 

	
 

	
 

	
 

	
          (xx)
       to the Class D Noteholders, all remaining
 amounts until the Outstanding Note Balance of the Class D Notes is reduced to
 zero; 

	
 

	
 

	
 

	
          (xxi)    
 to the Class D Noteholders, the Deferred Interest Amount for such Class, if
 any; 

	
 

	
 

	
 

	
          (xxii)   
 to the Class E Noteholders, all remaining amounts until the Outstanding Note
 Balance of the Class E Notes is reduced to zero; 

	
 

	
 

	
 

	
          (xxiii)
    to the Class E Noteholders, the Deferred
 Interest Amount for such Class, if any; 

49

	
 

	
 

	
 

	
 

	
 

	
          (xxiv)     to the Class F Noteholders, all remaining
 amounts until the Outstanding Note Balance of the Class F Notes is reduced to
 zero; 

	
 

	
 

	
 

	
 

	
 

	
          (xxv)
      to the Class F Noteholders, the Deferred
 Interest Amount for such Class, if any; 

	
 

	
 

	
 

	
 

	
 

	
          (xxvi)     to the Class G Noteholders, the Class G
 Interest Distribution Amount; 

	
 

	
 

	
 

	
 

	
 

	
          (xxvii)    to the Class G Noteholders, all remaining
 amounts until the Outstanding Note Balance of the Class G Notes is reduced to
 zero; 

	
 

	
 

	
 

	
 

	
 

	
          (xxviii)   to
 the Class G Noteholders, the Deferred Interest Amount for such Class, if any;
 

	
 

	
 

	
 

	
 

	
 

	
          (xxix)     to the Indenture Trustee, any extraordinary
 out-of-pocket expenses of the Indenture Trustee not paid in accordance with
 (i) above; and 

	
 

	
 

	
 

	
 

	
 

	
          (xxx)      any remaining Available Funds to the Certificate Distribution Account for
 distribution pursuant to the Trust Agreement. 

	
 

	
 

	
 

	
                    (b)     
 If (i) (A) a Payment Default Event shall have occurred or (B) each Class of Notes
 shall otherwise have been declared due and payable following an Event of
 Default and (ii) the Indenture Trustee shall have effected a sale of the Trust Estate
 under Section 6.3(d) Section and 6.16 hereof ((i) and (ii), a “Trust Estate Liquidation Event”), any
 money collected by the Indenture Trustee in respect of the Trust Estate and any
 other money that may be held thereafter by the Indenture Trustee as security for the
 Notes, including without limitation the amounts on deposit in the General Reserve
 Account, shall be applied in the following order on each Payment Date: 

	
 

	
 

	
 

	
 

	
 

	
          (i)      
 to the Indenture Trustee, any accrued and unpaid Indenture Trustee Fees and
 certain expenses incurred and charged and unpaid as of such date; 

	
 

	
 

	
 

	
 

	
 

	
          (ii)      to
 the Owner Trustee, any accrued and unpaid Owner Trustee Fees; 

	
 

	
 

	
 

	
 

	
 

	
          (iii)     to the Administrator, any accrued and unpaid Administrator Fees;

	
 

	
 

	
 

	
 

	
 

	
          (iv)     to the Custodian, any accrued and unpaid Custodian Fees;

	
 

	
 

	
 

	
 

	
 

	
          (v)
      to the Lockbox Bank, any accrued and unpaid
 Lockbox Fees;

	
 

	
 

	
 

	
 

	
 

	
          (vi)     to the Servicer, any accrued and unpaid Servicing Fees;

	
 

	
 

	
 

	
 

	
 

	
          (vii)    to the Backup Servicer, any accrued and unpaid Backup Servicing Fees (less
 any amounts received from the Indenture Trustee, as successor Servicer); 

	
 

	
 

	
 

	
 

	
 

	
          (viii)   to the Class A Noteholders, the Class A Interest Distribution Amount; 

50

	
 

	
 

	
 

	
          (ix)       to the Class A Noteholders, the Class A
 Deferred Interest Amount, if any; 

	
 

	
 

	
 

	
          (x)        to the Class A Noteholders, all remaining
 amounts until the Outstanding Note Balance of the Class A Notes is reduced to
 zero; 

	
 

	
 

	
 

	
          (xi)       to the Class B Noteholders, the Class B Interest Distribution Amount; 

	
 

	
 

	
 

	
          (xii)      to the Class B Noteholders, the Class B Deferred Interest Amount, if any; 

	
 

	
 

	
 

	
          (xiii)     to the Class B Noteholders, all remaining
 amounts until the Outstanding Note Balance of the Class B Notes is reduced to
 zero; 

	
 

	
 

	
 

	
          (xiv)     to the Class C Noteholders, the Class C
 Interest Distribution Amount; 

	
 

	
 

	
 

	
          (xv)     
 to the Class C Noteholders, the Class C Deferred Interest Amount, if any; 

	
 

	
 

	
 

	
          (xvi)     to the Class C Noteholders, all remaining
 amounts until the Outstanding Note Balance of the Class C Notes is reduced to
 zero; 

	
 

	
 

	
 

	
          (xvii)    to the Class D Noteholders, the Class D Interest Distribution Amount; 

	
 

	
 

	
 

	
          (xviii)   to the Class D Noteholders, the Class D
 Deferred Interest Amount, if any; 

	
 

	
 

	
 

	
          (xix)      to the Class D Noteholders, all remaining amounts until the Outstanding Note
 Balance of the Class D Notes is reduced to zero; 

	
 

	
 

	
 

	
          (xx)      
 to the Class E Noteholders, the Class E Interest Distribution Amount; 

	
 

	
 

	
 

	
          (xxi)      to
 the Class E Noteholders, the Class E Deferred Interest Amount, if any; 

	
 

	
 

	
 

	
          (xxii)     to
 the Class E Noteholders, all remaining amounts until the Outstanding Note
 Balance of the Class E Notes is reduced to zero; 

	
 

	
 

	
 

	
          (xxiii)    to the Class F Noteholders, the Class F Interest Distribution Amount; 

	
 

	
 

	
 

	
          (xxiv)    to the Class F Noteholders, the Class F Deferred Interest Amount, if any; 

	
 

	
 

	
 

	
          (xxv)     to the Class F Noteholders, all remaining amounts until the Outstanding Note
 Balance of the Class F Notes is reduced to zero; 

	
 

	
 

	
 

	
          (xxvi)    to the Class G Noteholders, the Class G Interest Distribution Amount; 

51

	
 

	
 

	
 

	
          (xxvii)     to the Class G Noteholders, the Class G
 Deferred Interest Amount, if any; 

	
 

	
 

	
 

	
          (xxviii)    to the Class G Noteholders, all remaining amounts until the Outstanding Note
 Balance of the Class G Notes is reduced to zero; and 

	
 

	
 

	
 

	
          (xxix)      any remaining Available Funds to the
 Certificate Distribution Account for distribution pursuant to the Trust
 Agreement. 

                    (c)
          Notwithstanding the
occurrence and continuation of an Event of Default, prior to the occurrence of
a Sequential Pay Event, Noteholders shall continue to be paid in the manner and
priorities described in Section 3.4 hereof. 

          SECTION
6.7.      Limitation on Suits. 

                    No
Noteholder shall have any right to institute any proceeding, judicial or
otherwise, with respect to this Indenture or for any other remedy hereunder,
unless: 

                    (a)
          there is a continuing
Event of Default and such Noteholder has previously given written notice to the
Indenture Trustee of a continuing Event of Default; 

                    (b)
          such Noteholder or
Noteholders have offered to the Indenture Trustee reasonable indemnity (which
may be in the form of written assurances) against the costs, expenses and
liabilities to be incurred in compliance with such request; 

                    (c)
          the Indenture
Trustee, for 30 days after its receipt of such notice, request and offer of
indemnity, has failed to institute any such proceeding; and 

                    (d)
          no direction
inconsistent with such written request has been given to the Indenture Trustee
during such 30-day period by the Noteholders representing at least 66-2/3% of
the Adjusted Note Balance of each Class of Notes Outstanding; 

it being
understood and intended that no one or more of such Noteholders shall have any
right in any manner whatever by virtue of, or by availing of, any provision of
this Indenture to affect, disturb or prejudice the rights of any other
Noteholders, or to obtain or to seek to obtain priority or preference over any
other Noteholders or to enforce any right under this Indenture, except in the
manner herein provided and for the ratable benefit of all such Noteholders. It
is further understood and intended that so long as any portion of the Notes
remains Outstanding, the Servicer shall not have any right to institute any
proceeding, judicial or otherwise, with respect to this Indenture (other than
for the enforcement of Section 3.4 hereof) or for the appointment of a receiver
or trustee (including without limitation a proceeding under the Bankruptcy
Code), or for any other remedy hereunder. Nothing in this Section 6.7 shall be
construed as limiting the rights of otherwise qualified Noteholders to petition
a court for the removal of a Indenture Trustee pursuant to Section 7.8 hereof. 

52

          SECTION
6.8.     Unconditional Right of Noteholders to
Receive Principal and Interest. 

                    Notwithstanding
any other provision in this Indenture, other than the provisions hereof
limiting the right to recover amounts due on the Notes to recoveries from the
property comprising the Trust Estate, each Noteholder shall have the absolute
and unconditional right to receive payment of the principal of, and interest
on, such Note as such payments of principal and interest become due, including
on the Stated Maturity, and such right shall not be impaired without the
consent of such Noteholder. 

          SECTION
6.9.      Restoration of Rights and Remedies. 

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

          SECTION
6.10.     Rights and Remedies Cumulative. 

                    Except
as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost, or stolen Notes in the last paragraph of Section 2.5 hereof,
no right or remedy herein conferred upon or reserved to the Indenture Trustee
or to the Noteholders is intended to be exclusive of any other right or remedy,
and every right and remedy shall, to the extent permitted by law, be cumulative
and in addition to every other right and remedy given hereunder or now or
hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent
the concurrent assertion or employment of any other appropriate right or
remedy. 

          SECTION
6.11.      Delay or Omission Not Waiver. 

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

          SECTION
6.12.      Control by Noteholders. 

                    Except
as may otherwise be provided in this Indenture, until such time as the
conditions specified in Sections 11.1(a)(i) and (ii) hereof have been satisfied
in full, the Noteholders representing at least 66-2/3% of the Adjusted Note
Balance of each Class of Notes shall have the right to direct the time, method
and place of conducting any proceeding for any remedy available to the
Indenture Trustee, or exercising any trust or power conferred on the Indenture
Trustee, with respect to the Notes. Notwithstanding the foregoing: 

53

	
 

	
 

	
 

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

	
 

	
 

	
 

	
          (ii)     
 the Indenture Trustee shall not be required to follow any such direction
 which the Indenture Trustee reasonably believes might result in any personal
 liability on the part of the Indenture Trustee for which the Indenture Trustee
 is not adequately indemnified; and 

	
 

	
 

	
 

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

          SECTION
6.13.      Waiver of Events of Default. 

                    (a)
          Unless a Sequential
Pay Event shall have occurred, the Noteholders representing at least 66-2/3% of
the Adjusted Note Balance of each Class of Notes may, by one or more
instruments in writing, waive any Event of Default hereunder and its
consequences, except a continuing Event of Default: 

	
 

	
 

	
 

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

	
 

	
 

	
 

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

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

          SECTION
6.14.      Undertaking for Costs. 

                    All
parties to this Indenture agree (and each Noteholder by its acceptance thereof
shall be deemed to have agreed) that any court may in its discretion require,
in any suit for the enforcement of any right or remedy under this Indenture, or
in any suit against the Indenture Trustee for any action taken, suffered or
omitted by it as Indenture Trustee, the filing by any party litigant in such
suit of an undertaking to pay the costs of such suit, and that such court may
in its discretion assess reasonable costs, including reasonable attorneys’
fees, against any party litigant in such suit, having due regard to the merits
and good faith of the claims or defenses made by such party litigant; but the
provisions of this Section 6.14 shall not apply to (i) any suit instituted by
the Indenture Trustee, (ii) to any suit instituted by any Noteholder, or group
of Noteholders representing at least 66-2/3% of the Adjusted Note Balance of each
Class of Notes Outstanding, or (iii) to any suit instituted by any Noteholder
for the enforcement of the payment of the principal of or interest on any Note
on or after the maturities for such payments, including the Stated Maturity, as
applicable. 

54

          SECTION
6.15.      Waiver of Stay or Extension Laws. 

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

          SECTION
6.16.      Sale of Trust Estate. 

                    (a)
          The power to effect
the sale of the Trust Estate pursuant to Section 6.3 hereof shall continue
unimpaired until the entire Trust Estate shall have been sold or all amounts
payable on the Notes shall have been paid or losses allocated thereto and borne
thereby. The Indenture Trustee may from time to time, upon directions in
accordance with Section 6.12 hereof, postpone any public sale by public
announcement made at the time and place of such sale. 

                    (b)
          Unless required by applicable law, the Indenture
Trustee shall not sell to a third party the Trust Estate, or any portion
thereof except as permitted under Section 6.3(d) hereof. 

                    (c)
          In connection with
a sale of the Trust Estate: 

	
 

	
 

	
 

	
          (i)
       any one or more Noteholders (other than
 Bluegreen or any Affiliates thereof) may bid for and purchase the property
 offered for sale, and upon compliance with the terms of sale may hold,
 retain, and possess and dispose of such property, without further
 accountability, and any Noteholder (other than Bluegreen or any Affiliates
 thereof) may, in paying the purchase money therefor, deliver in lieu of cash
 any Outstanding Notes or claims for interest thereon for credit in the amount
 that shall, upon distribution of the net proceeds of such sale, be payable
 thereon, and the Notes, in case the amounts so payable thereon shall be less
 than the amount due thereon, shall be returned to the Noteholders after being
 appropriately stamped to show such partial payment; 

	
 

	
 

	
 

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

	
 

	
 

	
 

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

55

	
 

	
 

	
 

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

	
 

	
 

	
 

	
          (v)
      the method, manner, time, place and terms of
 any sale of the Trust Estate shall be commercially reasonable; and 

	
 

	
 

	
 

	
          (vi)     
 none of Bluegreen or its Affiliates may bid for and purchase the Timeshare
 Loans offered for sale by the Indenture Trustee in Section 6.16(c)(i) hereof.
 

          SECTION
6.17.      Action on Notes. 

                    The
Indenture Trustee’s right to seek and recover judgment on the Notes or under
this Indenture or any other Transaction Document shall not be affected by the
seeking, obtaining or application of any other relief under or with respect to
this Indenture or any other Transaction Document. Neither the Lien of this
Indenture nor any rights or remedies of the Indenture Trustee or the
Noteholders shall be impaired by the recovery of any judgment by the Indenture
Trustee against the Issuer or by the levy of any execution under such judgment
upon any portion of the Trust Estate or upon any of the assets of the Issuer.
Any money or property collected by the Indenture Trustee shall be applied in
accordance with the provisions of this Indenture. 

          SECTION
6.18.      Performance and Enforcement of Certain
Obligations. 

                    Promptly
following a request from the Indenture Trustee, the Issuer shall take all such
lawful action as the Indenture Trustee may request to compel or secure the
performance and observance by the Depositor, the Club Originator and the
Servicer, as applicable, of each of their respective obligations to the Issuer
under or in connection with the Sale Agreement and any other Transaction Document
and to exercise any and all rights, remedies, powers and privileges lawfully
available to the Issuer under or in connection with the Sale Agreement or any
other Transaction Document to the extent and in the manner directed by the
Indenture Trustee, including the transmission of notices of default on the part
of the Depositor, the Club Originator or the Servicer thereunder and the
institution of legal or administrative actions or proceedings to compel or
secure performance by the Depositor, the Club Originator or the Servicer of
each of their obligations under the Sale Agreement and the other Transaction
Documents. 

ARTICLE VII. 

THE INDENTURE TRUSTEE 

          SECTION
7.1.      Certain Duties.

                    (a)
          The Indenture
Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture, and no implied covenants or
obligations shall be read into this Indenture against the Indenture Trustee;
except as expressly set forth herein, the Indenture Trustee shall have no
obligation to monitor the performance of the Servicer under the Transaction
Documents. 

56

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

                    (c)
          In case an Event of
Default or a Servicer Event of Default (resulting in the appointment of the
Indenture Trustee as successor Servicer) has occurred and is continuing, the
Indenture Trustee shall exercise such of the rights and powers vested in it by
this Indenture, and use the same degree of care and skill in their exercise, as
a prudent Person would exercise or use under the circumstances in the conduct
of such Person’s own affairs; provided, however, that no provision in this
Indenture shall be construed to limit the obligations of the Indenture Trustee
to provide notices under Section 7.2 hereof.  

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

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

	
 

	
 

	
 

	
          (i)
      this Section 7.1(e) shall not be construed to
 limit the effect of Section 7.1(a) and (b) hereof; 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
          (iii)     the
 Indenture Trustee shall not be liable with respect to any action taken or
 omitted to be taken by it in good faith in accordance with the written
 direction of the holders of the requisite principal amount of the outstanding
 Notes, or in accordance with any written direction delivered to it under
 Sections 6.2(a), (b) or (c) hereof relating to the time, method and place of
 conducting any proceeding for any remedy available to the Indenture Trustee,
 or exercising any trust or power conferred upon the Indenture Trustee, under
 this Indenture. 

                    (f)
          Whether or not
therein expressly so provided, every provision of this Indenture relating to
the conduct or affecting the liability of or affording protection to the
Indenture Trustee shall be subject to the provisions of this Section 7.1. 

57

                    (g)
          The Indenture
Trustee makes no representations or warranties with respect to the Timeshare
Loans or the Notes or the validity or sufficiency of any assignment of the
Timeshare Loans to the Issuer or to the Trust Estate. 

                    (h)
          Notwithstanding
anything to the contrary herein, the Indenture Trustee is not required to
expend or risk its own funds or otherwise incur financial liability in the
performance of any of its duties hereunder or in the exercise of any of its
rights or powers, if it shall have reasonable grounds to believe that repayment
of such funds or adequate indemnity against such risk or liability is not
reasonably assured to it. 

          SECTION
7.2.      Notice of Events of Default. 

                    The
Indenture Trustee shall promptly (but, in any event, within three Business
Days) notify the Issuer, the Servicer, the Rating Agency and the Noteholders
upon a Responsible Officer obtaining actual knowledge of any event which
constitutes an Event of Default or a Servicer Event of Default or would
constitute an Event of Default or a Servicer Event of Default but for the
requirement that notice be given or time elapse or both. 

          SECTION
7.3.      Certain Matters Affecting the Indenture
Trustee.  

                    Subject
to the provisions of Section 7.1 hereof: 

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

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

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

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

                    (e)
          Prior to the
occurrence of an Event of Default or after the curing of all Events of Default
which may have occurred, the Indenture Trustee shall not be bound to make any
investigation into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, consent, order,
approval, bond or other paper document, unless requested in writing so to do by
Noteholders representing at least 66-2/3% of the Adjusted Note Balance of each
Class of Notes; provided, however, that if the payment within a
reasonable time to the Indenture Trustee of the costs, expenses or liabilities
likely to be 

58

incurred by it
in the making of such investigation is, in the reasonable opinion of the Indenture
Trustee, not reasonably assured to the Indenture Trustee by the security
afforded to it by the terms of this Indenture, the Indenture Trustee may
require reasonable indemnity against such cost, expense or liability as a
condition to so proceeding. The reasonable expense of every such examination
shall be paid by the Servicer or, if paid by the Indenture Trustee, shall be
reimbursed by the Servicer upon demand; 

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

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

          SECTION
7.4.     Indenture Trustee Not Liable for Notes or
Timeshare Loans. 

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

                    (b)
          The Indenture Trustee
(in its capacity as Indenture Trustee) shall have no responsibility or
liability for or with respect to the validity of any security interest in any
property securing a Timeshare Loan; the existence or validity of any Timeshare
Loan, the validity of the assignment of any Timeshare Loan to the Trust Estate
or of any intervening assignment; the review of any Timeshare Loan, any
Timeshare Loan File, the completeness of any Timeshare Loan File, the receipt
by the Custodian of any Timeshare Loan, Timeshare Loan File, (it being
understood that the Indenture Trustee has not reviewed and does not intend to
review such matters); the performance or enforcement of any Timeshare Loan; the
compliance by the Servicer or the Issuer with any covenant or the breach by the
Servicer or the Issuer of any warranty or representation made hereunder or in
any Transaction Document or the accuracy of any such warranty or
representation; the acts or omissions of the Servicer, the Issuer or any
Obligor; or any action of the Servicer or the Issuer taken in the name of the
Indenture Trustee. 

          SECTION
7.5.      Indenture Trustee May Own Notes. 

                    The
Indenture Trustee in its individual or any other capacity may become the owner
or pledgee of Notes with the same rights as it would have if it were not the
Indenture Trustee. Any Paying Agent, Note Registrar, co-registrar or co-paying
agent may become the 

59

owner or
pledgee of Notes with the same rights as it would have if it were not the
Paying Agent, Note Registrar, co-registrar or co-paying agent. 

          SECTION
7.6.      Indenture Trustee’s Fees and Expenses.

                    On
each Payment Date, the Indenture Trustee shall be entitled to the Indenture
Trustee Fee and reimbursement of out-of-pocket expenses incurred by it in
connection with its responsibilities hereunder in the priorities provided in
Sections 3.4 or 6.6 hereof, as applicable. 

          SECTION
7.7.      Eligibility Requirements for Indenture
Trustee. 

                    Other
than the initial Indenture Trustee, the Indenture Trustee hereunder shall at
all times (a) be a corporation, depository institution, or trust company
organized and doing business under the laws of the United States of America or
any state thereof authorized under such laws to exercise corporate trust
powers, having a combined capital and surplus of at least $100,000,000, (b) be
subject to supervision or examination by federal or state authority, (c) be
capable of maintaining an Eligible Bank Account, (d) have a long-term unsecured
debt rating of not less than “Baa2” from Moody’s and “BBB” from S&P, and
(e) shall be acceptable to Noteholders representing at least 66-2/3% of the
Adjusted Note Balance of each Class of Notes. If such institution publishes reports
of condition at least annually, pursuant to or to the requirements of the
aforesaid supervising or examining authority, then for the purpose of this
Section 7.7, the combined capital and surplus of such institution shall be
deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. In case at any time the Indenture Trustee
shall cease to be eligible in accordance with the provisions of this Section
7.7, the Indenture Trustee shall resign in the manner and with the effect
specified in Section 7.8 hereof. 

          SECTION
7.8.      Resignation or Removal of Indenture
Trustee.

                    (a)
          The Indenture
Trustee may at any time resign and be discharged with respect to the Notes by
giving 60 days’ written notice thereof to the Servicer, the Issuer, the Rating
Agency and the Noteholders. Upon receiving such notice of resignation, the
Issuer shall promptly appoint a successor Indenture Trustee not objected to by
Noteholders representing at least 66-2/3% of the Adjusted Note Balance of each
Class of Notes within 30 days after prior written notice, by written
instrument, in sextuplicate, one counterpart of which instrument shall be
delivered to each of the Issuer, the Servicer, the Rating Agency, the
Noteholders, the successor Indenture Trustee and the predecessor Indenture
Trustee. If no successor Indenture Trustee shall have been so appointed and
have accepted appointment within 60 days after the giving of such notice of
resignation, the resigning Indenture Trustee may petition any court of
competent jurisdiction for the appointment of a successor Indenture Trustee. 

                    (b)
          If at any time the
Indenture Trustee shall cease to be eligible in accordance with the provisions
of Section 7.7 hereof and shall fail to resign after written request therefor
by the Issuer, or if at any time the Indenture Trustee shall be legally unable
to act, fails to perform in any material respect its obligations under this
Indenture, or shall be adjudged as bankrupt or insolvent, or a receiver of the
Indenture Trustee or of its property shall be appointed, or any public officer
shall take charge or control of the Indenture Trustee or of its property or
affairs for 

60

the purpose of
rehabilitation, conservation or liquidation, then the Issuer or Noteholders
representing at least 66-2/3% of the Adjusted Note Balance of each Class of
Notes may direct the Issuer to remove the Indenture Trustee. If it removes the
Indenture Trustee under the authority of the immediately preceding sentence,
the Issuer shall promptly appoint a successor Indenture Trustee not objected to
by Noteholders representing at least 66-2/3% of the Adjusted Note Balance of
each Class of Notes, within 30 days after prior written notice, by written
instrument, in sextuplicate, one counterpart of which instrument shall be
delivered to each of the Issuer, the Servicer, the Noteholders, the Rating
Agency, the successor Indenture Trustee and the predecessor Indenture Trustee. 

                    (c)
          Any resignation or
removal of the Indenture Trustee and appointment of a successor Indenture
Trustee pursuant to any of the provisions of this Section 7.8 shall not become
effective until acceptance of appointment by the successor Indenture Trustee as
provided in Section 7.9 hereof. 

          SECTION
7.9.      Successor Indenture Trustee.  

                    (a)
          Any successor
Indenture Trustee appointed as provided in Section 7.8 hereof shall execute,
acknowledge and deliver to each of the Servicer, the Issuer, the Rating Agency,
the Noteholders and to its predecessor Indenture Trustee an instrument
accepting such appointment hereunder, and thereupon the resignation or removal
of the predecessor Indenture Trustee shall become effective and such successor
Indenture Trustee, without any further act, deed or conveyance, shall become
fully vested with all the rights, powers, duties and obligations of its
predecessor Indenture Trustee hereunder with like effect as if originally named
a Indenture Trustee. The predecessor Indenture Trustee shall deliver or cause
to be delivered to the successor Indenture Trustee or its custodian any
Transaction Documents and statements held by it or its custodian hereunder; and
the Servicer and the Issuer and the predecessor Indenture Trustee shall execute
and deliver such instruments and do such other things as may reasonably be
required for the full and certain vesting and confirmation in the successor
Indenture Trustee of all such rights, powers, duties and obligations. 

                    (b)
          In case of the
appointment hereunder of a successor Indenture Trustee with respect to the
Notes, the Issuer, the retiring Indenture Trustee and each successor Indenture
Trustee with respect to the Notes shall execute and deliver an indenture
supplemental hereto wherein each successor Indenture Trustee shall accept such
appointment and which (i) shall contain such provisions as shall be necessary
or desirable to transfer and confirm to, and to vest in, each successor
Indenture Trustee all the rights, powers, trusts and duties of the retiring
Indenture Trustee with respect to the Notes to which the appointment of such
successor Indenture Trustee relates, (ii) if the retiring Indenture Trustee is
not retiring with respect to all Notes, shall contain such provisions as shall
be deemed necessary or desirable to confirm that all the rights, powers, trusts
and duties of the retiring Indenture Trustee with respect to the Notes as to
which the retiring Indenture Trustee is not retiring shall continue to be
vested in the retiring Indenture Trustee, and (iii) shall add to or change any
of the provisions of this Indenture as shall be necessary to provide for or
facilitate the administration of the Trust Estate hereunder by more than one
Indenture Trustee, it being understood that nothing herein or in such
supplemental indenture shall constitute such Indenture Trustees co-trustees of
the same allocated trust and that each such Indenture Trustee shall be trustee
of a trust or trusts hereunder separate and apart from 

61

any trust or
trusts hereunder administered by any other such Indenture Trustee; and upon the
execution and delivery of such supplemental indenture the resignation or
removal of the retiring Indenture Trustee shall become effective to the extent
provided therein and each such successor Indenture Trustee, without any further
act, deed or conveyance, shall become vested with all the rights, powers,
trusts and duties of the retiring Indenture Trustee with respect to the Notes
to which the appointment of such successor Indenture Trustee relates; but, on
request of the Issuer or any successor Indenture Trustee, such retiring
Indenture Trustee shall duly assign, transfer and deliver to such successor
Indenture Trustee all property and money held by such retiring Indenture
Trustee hereunder with respect to the Notes of that or those to which the
appointment of such successor Indenture Trustee relates. 

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

                    (c)          No
successor Indenture Trustee shall accept appointment as provided in this
Section 7.9 unless at the time of such acceptance such successor Indenture
Trustee shall be eligible under the provisions of Section 7.7 hereof. 

                    (d)          Upon acceptance of appointment by a successor Indenture Trustee as provided in this
Section 7.9, the Servicer shall mail notice of the succession of such Indenture
Trustee hereunder to each Noteholder at its address as shown in the Note Register.
If the Servicer fails to mail such notice within ten days after acceptance of
appointment by the successor Indenture Trustee, the successor Indenture Trustee
shall cause such notice to be mailed at the expense of the Issuer and the
Servicer. 

          SECTION
7.10.     Merger or Consolidation of Indenture
Trustee. 

                    Any
corporation into which the Indenture Trustee may be merged or converted or with
which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Indenture Trustee shall be a party, or
any corporation succeeding to the corporate trust business of the Indenture
Trustee, shall be the successor of the Indenture Trustee hereunder, provided
such corporation shall be eligible under the provisions of Section 7.7 hereof,
without the execution or filing of any paper or any further act on the part of
any of the parties hereto, anything herein to the contrary notwithstanding. 

          SECTION
7.11.     Appointment of Co-Indenture Trustee or
Separate Indenture Trustee. 

                    (a)          At
any time or times for the purpose of meeting any legal requirement of any
jurisdiction in which any part of the Trust Estate may at the time be located
or in which any action of the Indenture Trustee may be required to be performed
or taken, the Indenture Trustee, the Servicer or the Noteholders representing
at least 66-2/3% of the Adjusted Note Balance of each Class of Notes, by an
instrument in writing signed by it or them, may appoint, at the reasonable
expense of the Issuer and the Servicer, one or more individuals or corporations
to act as separate trustee or separate trustees or co-trustee, acting jointly
with the Indenture Trustee, of all or any part of the Trust Estate, to the full
extent that local law makes it necessary for such separate trustee or separate
trustees or co-trustee acting jointly with the Indenture Trustee to act. 

62

Notwithstanding
the appointment of any separate or co-trustee, the Indenture Trustee shall
remain obligated and liable for the obligations of the Indenture Trustee under
this Indenture. 

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

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

                    (d)          Every
additional trustee and separate trustee hereunder shall, to the extent
permitted by law, be appointed and act and the Indenture Trustee shall act,
subject to the following provisions and conditions: (i) all powers, duties and
obligations and rights conferred upon the Indenture Trustee in respect of the
receipt, custody, investment and payment of monies shall be exercised solely by
the Indenture Trustee; (ii) all other rights, powers, duties and obligations
conferred or imposed upon the Indenture Trustee shall be conferred or imposed
and exercised or performed by the Indenture Trustee and such additional trustee
or trustees and separate trustee or trustees jointly except to the extent that
under any law of any jurisdiction in which any particular act or acts are to be
performed, the Indenture Trustee shall be incompetent or unqualified to perform
such act or acts, in which event such rights, powers, duties and obligations
(including the holding of title to the Timeshare Properties in any such
jurisdiction) shall be exercised and performed by such additional trustee or
trustees or separate trustee or trustees; (iii) no power hereby given to, or
exercisable by, any such additional trustee or separate trustee shall be
exercised hereunder by such trustee except jointly with, or with the consent
of, the Indenture Trustee; and (iv) no trustee hereunder shall be personally
liable by reason of any act or omission of any other trustee hereunder. 

63

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

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

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

          SECTION
7.12.     Paying Agent and Note Registrar Rights.

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

          SECTION
7.13.     Authorization. 

                    (a)          The
Issuer hereby authorizes and directs the Indenture Trustee to enter into the
Lockbox Agreement. Pursuant to the Lockbox Agreement, the Indenture Trustee
agrees to cause to be established and maintained an account (the “Lockbox Account”) for the benefit of the
Noteholders. The Lockbox Account will be titled as required by the Lockbox
Bank. The Indenture Trustee is authorized and directed to act as titleholder of
the Lockbox Account in accordance with the terms of the Lockbox Agreement for
the benefit of the Noteholders with interests in the funds on deposit in such
account. In addition, the Indenture Trustee is hereby authorized to enter into,
execute, deliver and perform under, each of the applicable Transaction
Documents, the letter agreement among the Indenture Trustee, the Depositor, the
Issuer and Bluegreen regarding the purchase and transfer of Closing Date
Eligible Investments and the Depository Agreement. The Lockbox Bank will be
required to transfer and will be permitted to withdraw funds from the Lockbox
Account in accordance with the Lockbox Agreement. 

                    (b)          The
Indenture Trustee is authorized and directed to act as titleholder of the
Credit Card Account for the benefit of the Noteholders with interests in the
funds on deposit in such account.

          SECTION
7.14.     Maintenance of Office or Agency. 

                    The
Indenture Trustee will maintain in the Borough of Manhattan, the City of New
York, an office or agency where Notes may be surrendered for registration of
transfer or exchange, and where notices and demands to or upon the Indenture
Trustee in respect of the Notes and this Indenture may be served. The Indenture
Trustee will give prompt written notice to the Issuer, the Servicer and the
Noteholders of the location, and of any change in the location, of any such
office or agency or shall fail to furnish the Issuer or the Servicer with the
address 

64

thereof, such
surrenders, notices and demands may be made or served at the Corporate Trust
Office, and the Issuer hereby appoints the Indenture Trustee as its agent to
receive all such surrenders, notices and demands. 

ARTICLE VIII.

COVENANTS OF THE ISSUER

          SECTION
8.1.     Payment of Principal, Interest and Other
Amounts. 

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

          SECTION
8.2.    Eligible Timeshare Loans. 

                    On
each Transfer Date, each Subsequent Timeshare Loan or Qualified Substitute
Timeshare Loan, as the case may be, shall be an Eligible Timeshare Loan. 

          SECTION
8.3.     Money for Payments to Noteholders to Be
Held in Trust. 

                    (a)          All
payments of amounts due and payable with respect to any Notes that are to be
made from amounts withdrawn from the Trust Accounts pursuant to Sections 3.4 or
6.6 hereof shall be made on behalf of the Issuer by the Indenture Trustee, and
no amounts so withdrawn from the Collection Account for payments of the Notes
shall be paid over to the Issuer under any circumstances, except as provided in
this Section 8.3, in Section 3.4 or Section 6.6 hereof, as the case may be. 

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

                    (c)          Except
as required by applicable law, any money held by the Indenture Trustee or the
Paying Agent in trust for the payment of any amount due with respect to any
Note shall not bear interest and if remaining unclaimed for two years after
such amount has become due and payable to the Noteholder shall be discharged
from such trust and, subject to applicable escheat laws, and so long as no
Event of Default has occurred and is continuing, paid to the Issuer upon
request; otherwise, such amounts shall be redeposited in the Collection Account
as Available Funds, and such Noteholder shall thereafter, as an unsecured
general creditor, look only to the Issuer for payment thereof (but only to the
extent of the amounts so paid to the Issuer), and all liability of the
Indenture Trustee or the Paying Agent with respect to such trust money shall
thereupon cease; provided, however, that the Indenture Trustee or
the Paying Agent, before being required to make any such repayment, shall cause
to be published once, at the expense and direction of the Issuer, in a
newspaper published in the English language, customarily published on each
Business Day and of general circulation in the City of New York, notice that
such money remains unclaimed and that, after a date specified therein, which
shall not be less than 30 days from the date of such publication, any unclaimed
balance of such money then remaining will be repaid to the Issuer. The
Indenture Trustee or the Paying Agent shall also 

65

adopt and
employ, at the expense and direction of the Issuer, any other reasonable means
of notification of such repayment (including, but not limited to, mailing
notice of such repayment to Noteholders whose Notes have been called but have
not been surrendered for redemption or whose right to or interest in moneys due
and payable but not claimed is determinable) from the records of the Indenture
Trustee or of any Paying Agent, at the last address of record for each such
Noteholder. 

                    (d)          The
Issuer will cause each Paying Agent to execute and deliver to the Indenture
Trustee an instrument in which such Paying Agent shall agree with the Indenture
Trustee (and if the Indenture Trustee is the Paying Agent, it hereby so
agrees), subject to the provisions of this Section 8.3, that such Paying Agent
will: 

	
 

	
 

	
 

	
          (i)          give
 the Indenture Trustee notice of any occurrence that is, or with notice or
 with the lapse of time or both would become, an Event of Default by the
 Issuer of which it has actual knowledge in the making of any payment required
 to be made with respect to the Notes; 

	
 

	
 

	
 

	
          (ii)          at
 any time during the continuance of any such occurrence described in clause
 (i) above, upon the written request of the Indenture Trustee, pay to the
 Indenture Trustee all sums so held in trust by such Paying Agent; 

	
 

	
 

	
 

	
          (iii)          immediately
 resign as a Paying Agent and forthwith pay to the Indenture Trustee all sums
 held by it in trust for the payment of Notes if at any time it ceases to meet
 the standards required to be met by a Paying Agent at the time of its
 appointment; and 

	
 

	
 

	
 

	
          (iv)          comply
 with all requirements of the Code or any applicable state law with respect to
 the withholding from any payments made by it on any Notes of any applicable
 withholding taxes imposed thereon and with respect to any applicable
 reporting requirements in connection therewith. 

          The
Issuer may at any time, for the purpose of obtaining the satisfaction and
discharge of this Indenture or for any other purpose, by Issuer Order direct
any Paying Agent to pay to the Indenture Trustee all sums held in trust by such
Paying Agent, such sums to be held by the Indenture Trustee upon the same
trusts as those upon which the sums were held by such Paying Agent; and upon
such payment by any Paying Agent to the Indenture Trustee, such Paying Agent
shall be released from all further liability with respect to such monies. 

          SECTION
8.4.     Existence; Merger; Consolidation, etc.

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

                    (b)          The
Issuer shall at all times observe and comply in all material respects with (i)
all laws applicable to it, (ii) all requirements of law in the declaration and
payment of 

66

distributions,
and (iii) all requisite and appropriate formalities in the management of its
business and affairs and the conduct of the transactions contemplated hereby. 

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

                    (d)          The
Issuer shall not become an “investment company” or under the “control” of an “investment
company” as such terms are defined in the Investment Company Act of 1940, as
amended (or any successor or amendatory statute), and the rules and regulations
thereunder (taking into account not only the general definition of the term “investment
company” but also any available exceptions to such general definition); provided,
however, that the Issuer shall be in compliance with this Section 8.4 if
it shall have obtained an order exempting it from regulation as an “investment
company” so long as it is in compliance with the conditions imposed in such
order. 

          SECTION
8.5.     Protection of Trust Estate; Further
Assurances. 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

67

	
 

	
 

	
 

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

                    (b)          The
Issuer will not take any action and will use its commercially reasonable
efforts not to permit any action to be taken by others that would release any
Person from any of such Person’s material covenants or obligations under any instrument
or agreement included in the Trust Estate or that would result in the
amendment, hypothecation, subordination, termination or discharge of, or impair
the validity or effectiveness of, any such instrument or agreement, except as
expressly provided in this Indenture or the Custodial Agreement or such other
instrument or agreement. 

                    (c)          The
Issuer may contract with or otherwise obtain the assistance of other Persons to
assist it in performing its duties under this Indenture, and any performance of
such duties by a Person identified to the Indenture Trustee in an Officer’s
Certificate of the Issuer shall be deemed to be action taken by the Issuer, provided,
however, that no appointment of such Person shall relieve the Issuer of
its duties and obligations hereunder. Initially, the Issuer has contracted with
the Servicer, the Indenture Trustee and the Custodian pursuant to this
Indenture to assist the Issuer in performing its duties under this Indenture
and the other Transaction Documents. 

                    (d)          The
Issuer will punctually perform and observe all of its obligations and
agreements contained in this Indenture, the Transaction Documents and in the
instruments and agreements included in the Trust Estate. 

                    (e)          Without
derogating from the absolute nature of the assignment granted to the Indenture
Trustee under this Indenture or the rights of the Indenture Trustee hereunder,
the Issuer agrees (i) that it will not, without the prior written consent of
the Indenture Trustee and the Noteholders representing at least 66-2/3% of the
Adjusted Note Balance of each Class of Notes, amend, modify, waive, supplement,
terminate or surrender, or agree to any amendment, modification, supplement,
termination, waiver or surrender of, the terms of any Timeshare Loan (except to
the extent otherwise provided in this Indenture or in the Timeshare Loan
Documents) or the Transaction Documents, or waive timely performance or
observance by the Servicer, the Indenture Trustee, the Custodian, the Paying
Agent or the Depositor under this Indenture; and (ii) that any such amendment
shall not (A) reduce in any manner the amount of, or accelerate or delay the
timing of, distributions that are required to be made for the benefit of the
Noteholders or (B) reduce the aforesaid percentage of the Notes that is
required to consent to any such amendment, without the consent of the
Noteholders of all the Outstanding Notes. If any such amendment, modification,
supplement or waiver shall be so consented to by the Indenture Trustee and the
Noteholders, the Issuer agrees, promptly following a request by the Indenture
Trustee, to execute and deliver, at its own expense, such agreements,
instruments, consents and other documents as the Indenture Trustee may deem
necessary or appropriate in the circumstances. 

68

                    The
Issuer, upon the Issuer’s failure to do so, hereby irrevocably designates the
Indenture Trustee and the Servicer, severally, its agents and attorneys-in-fact
to execute any financing statement or continuation statement or Assignment of
Mortgage required pursuant to this Section 8.5; provided, however,
that such designation shall not be deemed to create a duty of the Indenture
Trustee to monitor the compliance of the Issuer with the foregoing covenants,
and provided, further, that the duty of the Indenture Trustee or
the Servicer to execute any instrument required pursuant to this Section 8.5
shall arise only if a Responsible Officer of the Indenture Trustee or the
Servicer, as applicable, has Knowledge of any failure of the Issuer to comply with
the provisions of this Section 8.5. 

          SECTION
8.6.     Additional Covenants. 

                    (a)          The
Issuer will not: 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
          (ii)          claim
 any credit on, or make any deduction from, the principal of, or interest on,
 any of the Notes (other than amounts properly withheld from such payments
 under the Code) or any applicable state law or assert any claim against any
 present or former Noteholder by reason of the payment of any taxes levied or
 assessed upon any portion of the Trust Estate; 

	
 

	
 

	
 

	
          (iii)          engage
 in any business or activity other than as permitted by this Indenture, the
 Trust Agreement and the other Transaction Documents and any activities
 incidental thereto, or amend the Trust Agreement as in effect on the Closing
 Date other than in accordance with Article XI thereof; 

	
 

	
 

	
 

	
          (iv)          issue
 debt of obligations under any indenture other than this Indenture; 

	
 

	
 

	
 

	
          (v)          incur
 or assume, directly or indirectly, any indebtedness, except for such
 indebtedness as may be incurred by the Issuer pursuant to this Indenture, or
 guaranty any indebtedness or other obligations of any Person (other than the
 Timeshare Loans), or own, purchase, repurchase or acquire (or agree
 contingently to do so) any stock, obligations, assets or securities of, or
 any other interest in, or make any capital contribution to, any other Person
 (other than the Timeshare Loans); 

	
 

	
 

	
 

	
          (vi)          dissolve
 or liquidate in whole or in part or merge or consolidate with any other
 Person; 

	
 

	
 

	
 

	
          (vii)          (A)
 permit the validity or effectiveness of this Indenture or any Grant hereby to
 be impaired, or permit the Lien of this Indenture to be amended,
 hypothecated, subordinated, terminated or discharged, or permit any Person to
 be released from any covenants or obligations under this Indenture, except as
 may be expressly permitted hereby, (B) permit any lien, charge, security
 interest, mortgage or other encumbrance to be created on or to extend to or
 otherwise arise upon or burden the Trust Estate or any part thereof or any
 interest therein or the proceeds 

69

	
 

	
 

	
 

	
thereof
 (other than tax liens, mechanics; liens and other liens that arise by
 operation of law, in each case on any of the Resort Interests and arising
 solely as a result of an act or omission of the related Obligor) other than
 the Lien of this Indenture or (C) except as otherwise contemplated in this
 Indenture, permit the Lien of this Indenture (other than with respect to any
 Permitted Liens or such tax, mechanic’s or other lien) not to constitute a
 valid first priority security interest in the Trust Estate; 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
          (ix)          change
 the location of its principal place of business without the prior notice to
 the Indenture Trustee and the Noteholders. 

                    (b)          Notice
of Events of Default. Immediately upon the Issuer having Knowledge of the
existence of any condition or event which constitutes a Default or an Event of
Default or a Servicer Event of Default, the Issuer shall deliver to the
Indenture Trustee a written notice describing its nature and period of
existence and what action the Issuer is taking or proposes to take with respect
thereto. 

                    (c)          Report
on Proceedings. Promptly upon the Issuer’s becoming aware of (i) any
proposed or pending investigation of it by any governmental authority or
agency; or (ii) any pending or proposed court or administrative proceeding
which involves or is reasonably likely to involve the possibility of materially
and adversely affecting the properties, business, prospects, profits or
condition (financial or otherwise) of the Issuer, the Issuer shall deliver to
the Indenture Trustee a written notice specifying the nature of such
investigation or proceeding and what action the Issuer is taking or proposes to
take with respect thereto and evaluating its merits. 

70

          SECTION
8.7.     Taxes. 

                    The
Issuer shall pay all taxes when due and payable or levied against its assets,
properties or income, including any property that is part of the Trust Estate,
except to the extent the Issuer is contesting the same in good faith and has
set aside adequate reserves in accordance with GAAP for the payment thereof. 

          SECTION
8.8.     Restricted Payments. 

                    The
Issuer shall not, directly or indirectly, (i) pay any dividend or make any
distribution (by reduction of capital or otherwise), whether in cash, property,
securities or a combination thereof, to the Owner Trustee or any owner of a
beneficial interest in the Issuer or otherwise with respect to any ownership or
equity interest to security in or of the Issuer, the Club Originator, the
Depositor or to the Servicer, (ii) redeem, purchase, retire or otherwise
acquire for value any such ownership or equity interest or security or (iii)
set aside or otherwise segregate any amounts for any such purpose; provided,
however, that the Issuer
may make, or cause to be made, payments and distributions to or on behalf of
the Servicer, the Backup Servicer, the Lockbox Bank, the Club Originator, the
Depositor, the Indenture Trustee, the Owner Trustee, the Administrator, the
Custodian, the Noteholders and the Certificateholders as contemplated by, and
to the extent funds are available for such purpose under, this Indenture, the
Sale Agreement, the Trust Agreement or the other Transaction Documents. The
Issuer will not, directly or indirectly, make or cause to be made payments to
or distributions from the Collection Account except in accordance with this
Indenture and the other Transaction Documents. 

          SECTION
8.9.     Treatment of Notes as Debt for Tax
Purposes. 

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

          SECTION
8.10.     Further Instruments and Acts. 

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

ARTICLE IX.

SUPPLEMENTAL INDENTURES

          SECTION
9.1.     Supplemental Indentures. 

                    (a)          The
Issuer and the Indenture Trustee, when authorized by an Issuer Order, at any
time and from time to time, may enter into one or more indentures supplemental
hereto, in form satisfactory to the Indenture Trustee, for any of the following
purposes: 

	
 

	
 

	
 

	
 

	
 

	
          (i)          without
 the consent of any Noteholder; to correct or amplify the description of any
 property at any time subject to the Lien of this Indenture, or to better
 assure, convey and confirm unto the Indenture Trustee any property subject or
 

71

	
 

	
 

	
 

	
 

	
 

	
required to
 be subjected to the Lien of this Indenture; provided, such action
 pursuant to this clause (i) shall not adversely affect the interests of the
 Noteholders in any respect; or

	
 

	
 

	
 

	
 

	
 

	
 

	
(1)

	
to evidence
 and provide for the acceptance of appointment hereunder by a successor
 Indenture Trustee with respect to the Notes and to add to or change any of
 the provisions of this Indenture as shall be necessary to provide for or
 facilitate the administration of the trusts hereunder by more than one
 Indenture Trustee, pursuant to the requirements of Section 7.9 hereof; or 

	
 

	
 

	
 

	
 

	
 

	
 

	
(2)

	
to cure any
 ambiguity, to correct or supplement any provision herein which may be
 defective or inconsistent with any other provision herein, or to make any
 other provisions with respect to matters or questions arising under this
 Indenture; provided that such action pursuant to this clause (2) shall not
 adversely affect the interests of any Noteholder. 

                    (b)          Notwithstanding
anything to the contrary in this Section 9.1 or this Indenture, no supplement
as provided for in this Section 9.1 shall cause the Issuer to fail to be
treated as a “qualified special purpose entity” as defined in Statement of
Financial Accounting Standards No. 140 (or any successor Statement of Financial
Accounting Standards). 

                    (c)          The
Indenture Trustee shall promptly deliver, at least five Business Days prior to
the effectiveness thereof, to each Noteholder and the Rating Agency, a copy of
any supplemental indenture entered into pursuant to this Section 9.1(a). 

          SECTION
9.2.     Supplemental Indentures with Consent of
Noteholders. 

                    (a)          With
the consent of Noteholders representing at least 66-2/3% of the Adjusted Note
Balance of each Class of Notes then Outstanding and by Act of said Noteholders
delivered to the Issuer and the Indenture Trustee, the Issuer and the Indenture
Trustee may, pursuant to an Issuer Order, enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of this Indenture or of
modifying in any manner the rights of the Noteholders under this Indenture; provided,
that no supplemental indenture shall, without the consent of the Noteholder of
each Outstanding Note affected thereby, 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
          (ii)          reduce
 the percentage of the Outstanding Note Balance or Adjusted Note Balance, the
 consent of the Noteholders of which is required for any 

72

	
 

	
 

	
 

	
supplemental
 indenture, for any waiver of compliance with provisions of this Indenture or
 Events of Default and their consequences; 

	
 

	
 

	
 

	
          (iii)          modify
 any of the provisions of this Section 9.2 or Section 6.13 hereof except to
 increase any percentage of Noteholders required for any modification or
 waiver or to provide that certain other provisions of this Indenture cannot
 be modified or waived without the consent of the Noteholder of each
 Outstanding Note affected thereby; 

	
 

	
 

	
 

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

	
 

	
 

	
 

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

provided, no such supplemental indenture may
modify or change any terms whatsoever of this Indenture that could be construed
as increasing the Issuer’s or the Servicer’s discretion hereunder. 

                    (b)          The
Indenture Trustee shall promptly deliver, at least five Business Days prior to
the effectiveness thereof to each Noteholder and the Rating Agency, a copy of
any supplemental indenture entered into pursuant to Section 9.2(a) hereof. 

          SECTION
9.3.     Execution of Supplemental Indentures. 

                    In
executing, or accepting the additional trusts created by, any supplemental
indenture (a) pursuant to Section 9.1 hereof or (b) pursuant to Section 9.2
hereof without the consent of each Noteholder to the execution of the same, or
the modifications thereby of the trusts created by this Indenture, the
Indenture Trustee shall be entitled to receive, and (subject to Section 7.1
hereof) shall be, fully protected in relying upon, an Opinion of Counsel
stating that the execution of such supplemental indenture is authorized or
permitted by this Indenture. The Indenture Trustee may, but shall not be
obligated to, enter into any supplemental indenture which affects the Indenture
Trustee’s own rights, duties, obligations, or immunities under this Indenture
or otherwise. 

          SECTION
9.4.     Effect of Supplemental Indentures. 

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

          SECTION
9.5.     Reference in Notes to Supplemental
Indentures. 

                    Notes
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article may, and shall if required by the Indenture Trustee,
bear a 

73

notation in
form approved by the Indenture Trustee as to any matter provided for in such
supplemental indenture. New Notes so modified as to conform, in the opinion of
the Indenture Trustee and the Issuer, to any such supplemental indenture may be
prepared and executed by the Issuer and authenticated and delivered by the
Indenture Trustee in exchange for Outstanding Notes. 

ARTICLE X.

REDEMPTION OF NOTES

          SECTION
10.1.     Optional Redemption; Election to Redeem.

                    The
Servicer shall have the option to redeem not less than all of the Notes and
thereby cause the early repayment of the Notes on any date after the Optional
Redemption Date by payment of an amount equal to the Redemption Price and any
amounts, fees and expenses that are required to be paid pursuant to Section
6.6(b) hereof (unless amounts in the Trust Accounts are sufficient to make such
payments). 

          SECTION
10.2.     Notice to Indenture Trustee. 

                    The
Servicer shall give written notice of its intention to redeem the Notes to the
Indenture Trustee at least 15 days prior to the Redemption Date (unless a
shorter period shall be satisfactory to the Indenture Trustee). 

          SECTION
10.3.     Notice of Redemption by the Servicer.

                    Notices
of redemption shall be given by first class mail, postage prepaid, mailed not
less than for 15 days prior to the Redemption Date to each Noteholder, at the
address listed in the Note Register and to the Rating Agency. All notices of
redemption shall state (a) the Redemption Date, (b) the Redemption Price, (c)
that on the Redemption Date, the Redemption Price will become due and payable
in respect of each Note, and that interest thereon shall cease to accrue if
payment is made on the Redemption Date and (d) the office of the Indenture
Trustee where the Notes are to be surrendered for payment of the Redemption
Price. Failure to give notice of redemption, or any defect therein, to any
Noteholder shall not impair or affect the validity of the redemption of any
other Note. 

          SECTION
10.4.     Deposit of Redemption Price. 

                    On
or before the Business Day immediately preceding the Redemption Date, the
Servicer shall deposit with the Indenture Trustee an amount equal to the
Redemption Price and any amounts, fees and expenses that are required to be
paid hereunder (less any portion of such payment to be made from funds held in
any of the Trust Accounts). 

          SECTION
10.5.     Notes Payable on Redemption Date. 

                    Notice
of redemption having been given as provided in Section 10.3 hereof and deposit
of the Redemption Price with the Indenture Trustee having been made as provided
in Section 10.4 hereof, the Notes shall on the Redemption Date, become due and
payable at the 

74

Redemption
Price, and, on such Redemption Date, such Notes shall cease to accrue interest.
The Indenture Trustee shall apply all available funds in accordance with
Section 6.6(b) hereof and the Noteholders shall be paid the Redemption Price by
the Indenture Trustee on behalf of the Servicer upon presentment and surrender
of their Notes at the office of the Indenture Trustee. If the Servicer shall
have failed to deposit the Redemption Price with the Indenture Trustee, the
principal and interest with respect to each Class of Notes shall, until paid,
continue to accrue interest at their respective Note Rates. The Servicer’s
failure to deposit the Redemption Price shall not constitute an Event of
Default hereunder. 

ARTICLE XI.

SATISFACTION AND DISCHARGE

          SECTION
11.1.     Satisfaction and Discharge of Indenture.

                    (a)          This
Indenture shall cease to be of further effect (except as to any surviving
rights of registration of transfer or exchange of Notes herein expressly
provided for), and the Indenture Trustee, on demand of, and at the expense of,
the Issuer, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture, when: 

	
 

	
 

	
 

	
 

	
 

	
          (i)          either:

	
 

	
 

	
 

	
 

	
 

	
 

	
(A)

	
all Notes
 theretofore authenticated and delivered (other than (1) Notes which have been
 destroyed, lost or stolen and which have been replaced or paid as provided in
 Section 2.5 hereof and (2) Notes for whose payment money has theretofore been
 deposited in trust or segregated and held in trust by the Issuer and
 thereafter repaid to the Issuer or discharged from such trust, as provided in
 Section 8.3(c) hereof) have been delivered to the Indenture Trustee for
 cancellation; or 

	
 

	
 

	
 

	
 

	
 

	
 

	
(B)

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

	
 

	
 

	
 

	
 

	
 

	
          (ii)          the
 Issuer and the Servicer have paid or caused to be paid (out of Available
 Funds or amounts received pursuant to Article X hereof) all other sums
 payable hereunder by the Issuer and the Servicer for the benefit of the
 Noteholders and the Indenture Trustee; and 

75

	
 

	
 

	
 

	
 

	
 

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

At such time,
the Indenture Trustee shall deliver to the Issuer or at the Issuer’s direction
all cash, securities and other property held by it as part of the Trust Estate
other than funds deposited with the Indenture Trustee pursuant to Section
11.1(a)(i) hereof, for the payment and discharge of the Notes. 

                    (b)          Notwithstanding
the satisfaction and discharge of this Indenture, the obligations of the Issuer
to the Indenture Trustee under Section 7.6 hereof and, if money shall have been
deposited with the Indenture Trustee pursuant to Section 11.1(a)(i) hereof, the
obligations of the Indenture Trustee under Sections 11.2 and 8.3(c) hereof
shall survive. 

          SECTION
11.2.     Application of Trust Money; Repayment of
Money Held by Paying Agent. 

                    Subject
to the provisions of Section 8.3(c) hereof, all money deposited with the
Indenture Trustee pursuant to Sections 11.1 and 8.3 hereof shall be held in
trust and applied by the Indenture Trustee in accordance with the provisions of
the Notes, this Indenture and the Trust Agreement, to the payment, either
directly or through a Paying Agent, as the Indenture Trustee may determine, to
the Persons entitled thereto, of the principal and interest for whose payment
such money has been deposited with the Indenture Trustee. 

                    In
connection with the satisfaction and discharge of this Indenture, all moneys
then held by any Paying Agent other than the Indenture Trustee under the
provisions of this Indenture with respect to the Notes shall, upon demand of
the Issuer, be paid to the Indenture Trustee to be held and applied according
to Section 3.4 hereof and thereupon such Paying Agent shall be released from
all further liability with respect to such moneys. 

          SECTION
11.3.     Trust Termination Date. 

                    Upon
the full application of (a) moneys deposited pursuant to this Article XI or (b)
proceeds of the Timeshare Loans pursuant to Sections 3.4 or 6.6 hereof, the
Trust Estate created by this Indenture shall be deemed to have terminated and
all Liens granted hereunder shall be released. 

76

ARTICLE XII.

REPRESENTATIONS AND WARRANTIES AND COVENANTS

          SECTION
12.1.     Representations and Warranties of the
Issuer. 

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

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

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

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

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

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

77

Intended Tax
Characterization, or (iv) asserting a claim for payment of money adverse to the
Issuer or the conduct of its business or which is inconsistent with the due
consummation of the transactions contemplated by this Indenture or any of the
Transaction Documents. 

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

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

                    (h)          Eligible
Timeshare Loans. Each Timeshare Loan subject to the Lien of this Indenture
is an Eligible Timeshare Loan. 

          SECTION
12.2.     Representations and Warranties of the
Servicer. 

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

                    (a)          Organization
and Authority. The Servicer: 

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

	
          (iii)          has
 made all filings and holds all material franchises, licenses, permits and
 registrations which are required under the laws of each jurisdiction in which
 the properties owned (or held under lease) by it or the nature of its
 activities makes such filings, franchises, licenses, permits or registrations
 necessary, except where the failure to make such filing will not have a
 material adverse effect on the Servicer’s activities or its ability to
 perform its obligations under the Transaction Documents. 

                    (b)          Place
of Business. The address of the principal place of business and chief
executive office of the Servicer is 4960 Conference Way North, Suite 100, Boca
Raton, Florida 33431 and there have been no other such locations during the
immediately preceding four months. 

                    (c)          Compliance
with Other Instruments, etc. The Servicer is not in violation of any term
of its certificate of incorporation and by-laws. The execution, delivery and
performance by the Servicer of the Transaction Documents to which it is a party
do not and will not (i) conflict with or violate the organizational documents
of the Servicer, (ii) conflict with or 

78

result in a
breach of any of the terms, conditions or provisions of, or constitute a
default under, or result in the creation of any Lien on any of the properties
or assets of the Servicer pursuant to the terms of any instrument or agreement
to which the Servicer is a party or by which it is bound where such conflict
would have a material adverse effect on the Servicer’s activities or its
ability to perform its obligations under the Transaction Documents or (iii)
require any consent of or other action by any trustee or any creditor of, any
lessor to or any investor in the Servicer. 

                    (d)          Compliance
with Law. The Servicer is in material compliance with all statutes, laws
and ordinances and all governmental rules and regulations to which it is
subject, the violation of which, either individually or in the aggregate, could
materially adversely affect its business, earnings, properties or condition
(financial or other). The internal policies and procedures employed by the
Servicer are in material compliance with all applicable statutes, laws and
ordinances and all governmental rules and regulations. The execution, delivery
and performance of the Transaction Documents to which it is a party do not and
will not cause the Servicer to be in violation of any law or ordinance, or any
order, rule or regulation, of any federal, state, municipal or other
governmental or public authority or agency where such violation would, either
individually or in the aggregate, materially adversely affect its business,
earnings, properties or condition (financial or other). 

                    
(e)          Pending
Litigation or Other Proceedings. Except as specified in “RISK FACTORS” in
the Offering Circular and on Schedule II hereto, there is no pending or, to the
best of the Servicer’s Knowledge, threatened action, suit, proceeding or
investigation before any court, administrative agency, arbitrator or
governmental body against or affecting the Servicer which, if decided
adversely, would materially and adversely affect (i) the condition (financial
or otherwise), business or operations of the Servicer, (ii) the ability of the
Servicer to perform its obligations under, or the validity or enforceability of
this Indenture or any other documents or transactions contemplated under this
Indenture, (iii) any Timeshare Loan or title of any Obligor to any Timeshare
Property pursuant to the applicable Owner Beneficiary Agreement or (iv) the
Indenture Trustee’s ability to foreclose or otherwise enforce the Liens of the
Timeshare Loans.  

                    (f)           Taxes.
Except as described on Schedule II hereto, the Servicer has filed all tax
returns (federal, state and local) which are required to be filed and has paid
all taxes related thereto, other than those which are being contested in good
faith or where the failure to file or pay would not have a material adverse
effect on the Servicer’s activities or its ability to perform its obligations
under the Transaction Documents.  

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

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

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

79

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

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

                    (l)          No
Consents. No prior consent, approval or authorization of, registration,
qualification, designation, declaration or filing with, or notice to any
federal, state or local governmental or public authority or agency, is, was or
will be required for the valid execution, delivery and performance by the
Servicer of the Transaction Documents to which it is a party. The Servicer has
obtained all consents, approvals or authorizations of, made all declarations or
filings with, or given all notices to, all federal, state or local governmental
or public authorities or agencies which are necessary for the continued conduct
by the Servicer of its respective businesses as now conducted, other than such
consents, approvals, authorizations, declarations, filings and notices which,
neither individually nor in the aggregate, materially and adversely affect, or
in the future will materially and adversely affect, the business, earnings,
prospects, properties or condition (financial or other) of the Servicer. 

                    (m)        Name.
The legal name of the Servicer is as set forth in the signature page of this
Indenture and the Servicer does not have any tradenames, fictitious names,
assumed names or “doing business as” names other than “Bluegreen Patten Corporation”
in North Carolina and “Bluegreen Corporation of Massachusetts” in Louisiana. 

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

                    (o)         Ratings.
Each of the Resorts specified in Exhibit I hereto have, as of the Closing Date,
ratings at least equal to the ratings specified therein.  

80

                    (p)          ACH
Form. The Servicer has delivered a form of the ACH Form attached to the
Sale Agreement to the Backup Servicer for its review. 

          SECTION
12.3.     Representations and Warranties of the
Indenture Trustee. 

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

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

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

                    (c)          Except
to the extent that the laws of certain jurisdictions in which any part of the
Trust Estate may be located require that a co-trustee or separate trustee be
appointed to act with respect to such property as contemplated herein, the
Indenture Trustee has the full power and authority to carry on its business as
now being conducted and to enter into and consummate all transactions
contemplated by this Indenture and the other Transaction Documents, has duly
authorized the execution, delivery and performance of this Indenture and the
other Transaction Documents to which it is a party, and has duly executed and
delivered this Indenture and the other Transaction Documents to which it is a
party. 

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

                    (e)          The
Indenture Trustee is not in violation of, and its execution and delivery of
this Indenture and the other Transaction Documents to which it is a party and
its performance and compliance with the terms of this Indenture and the other
Transaction Documents to which it is a party will not constitute a violation
of, any law, any order or decree of any court or arbiter, or any order,
regulation or demand of any federal, state or local governmental or regulatory
authority, which violation, in the Indenture Trustee’s good faith and
reasonable judgment, is likely to affect materially and adversely the ability
of the Indenture Trustee to perform its obligations under any Transaction
Document to which it is a party. 

                    (f)          No
litigation is pending or, to the best of the Indenture Trustee’s knowledge,
threatened against the Indenture Trustee that, if determined adversely to the
Indenture Trustee, would prohibit the Indenture Trustee from entering into any
Transaction 

81

Document to
which it is a party or, in the Indenture Trustee’s good faith and reasonable
judgment, is likely to materially and adversely affect the ability of the
Indenture Trustee to perform its obligations under any Transaction Document to
which it is a party. 

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

          SECTION
12.4. Multiple Roles. 

                    The
parties expressly acknowledge and consent to U.S. Bank National Association,
acting in the multiple roles of Indenture Trustee, the Paying Agent, the Note
Registrar, the successor Servicer (in the event the Backup Servicer shall not serve
as the successor Servicer) and the Custodian. U.S. Bank National Association
may, in such capacities, discharge its separate functions fully, without
hindrance or regard to conflict of interest principles, duty of loyalty
principles or other breach of fiduciary duties to the extent that any such
conflict or breach arises from the performance by U.S. Bank National
Association of express duties set forth in this Indenture in any of such
capacities, all of which defenses, claims or assertions are hereby expressly
waived by the other parties hereto, except in the case of negligence (other
than errors in judgment) and willful misconduct by U.S. Bank National
Association. 

          SECTION
12.5. [Reserved]. 

          SECTION
12.6.     Covenants of the Club Trustee. 

                    Until
the date on which each Class of Notes has been paid in full, the Club Trustee
hereby covenants that: 

                    (a)          No
Conveyance. The Club Trustee agrees not to convey any Resort Interest (as
defined in the Club Trust Agreement) in the Club relating to a Timeshare Loan
unless the Indenture Trustee shall have issued an instruction to the Club
Trustee pursuant to Section 8.07(c) of the Club Trust Agreement in connection
with its exercise of its rights as an Interest Holder Beneficiary (as defined
in the Club Trust Agreement) under Section 7.02 of the Club Trust Agreement. 

                    (b)          Separate
Corporate Existence. The Club Trustee shall: 

	
 

	
 

	
 

	
          (i)          maintain
 its own deposit account or accounts, separate from those of any Affiliate,
 with commercial banking institutions. The funds of the Club Trustee will not
 be diverted to any other Person or for other than trust or corporate uses of
 the Club Trustee, as applicable. 

	
 

	
 

	
 

	
          (ii)          ensure
 that, to the extent that it shares the same officers or other employees as
 any of its stockholders, beneficiaries or Affiliates, the salaries of and the
 expenses related to providing benefits to such officers 

82

	
 

	
 

	
 

	

and other
employees shall be fairly allocated among such entities, and each such entity
shall bear its fair share of the salary and benefit costs associated with all
such common officers and employees.  

	
 

	

 

	
 

	
          (iii)          ensure
 that, to the extent that the Club Trustee and the Servicer (together with
 their respective stockholders or Affiliates) jointly do business with vendors
 or service providers or share overhead expenses, the costs incurred in so
 doing shall be allocated fairly among such entities, and each such entity
 shall bear its fair share of such costs. To the extent that the Club Trustee
 and the Servicer (together with their respective stockholders or Affiliates)
 do business with vendors or service providers when the goods and services
 provided are partially for the benefit of any other Person, the costs
 incurred in so doing shall be fairly allocated to or among such entities for
 whose benefit the goods and services are provided, and each such entity shall
 bear its fair share of such costs. All material transactions between Club
 Trustee and any of its Affiliates shall be only on an arms’ length basis. 

	
 

	
 

	
 

	
          (iv)          to
 the extent that the Club Trustee and any of its stockholders, beneficiaries
 or Affiliates have offices in the same location, there shall be a fair and
 appropriate allocation of overhead costs among them, and each such entity
 shall bear its fair share of such expenses. 

	
 

	
 

	
 

	
          (v)           conduct
 its affairs strictly in accordance with the Club Trust Agreement or its
 amended and restated articles of incorporation, as applicable, and observe
 all necessary, appropriate and customary corporate formalities, including,
 but not limited to, holding all regular and special stockholders’, trustees’
 and directors’ meetings appropriate to authorize all trust and corporate
 action, keeping separate and accurate minutes of its meetings, passing all
 resolutions or consents necessary to authorize actions taken or to be taken,
 and maintaining accurate and separate books, records and accounts, including,
 but not limited to, payroll and intercompany transaction accounts. 

                    (c)          Merger
or Consolidation. The Club Trustee shall not consolidate with or merge into
any other corporation or convey, transfer or lease substantially all of its
assets as an entirety to any Person unless the corporation formed by such
consolidation or into which the Club Trustee, as the case may be, has merged or
the Person which acquires by conveyance, transfer or lease substantially all
the assets of the Club Trustee, as the case may be, as an entirety, can
lawfully perform the obligations of the Club Trustee hereunder and executes and
delivers to the Indenture Trustee an agreement in form and substance reasonably
satisfactory to the Indenture Trustee which contains an assumption by such
successor entity of the due and punctual performance and observance of each
covenant and condition to be performed or observed by the Club Trustee under
this Indenture. 

                    (d)          Corporate
Matters. Notwithstanding any other provision of this Section 12.6 and any
provision of law, the Club Trustee shall not do any of the following: 

83

	
 

	
 

	
 

	
          (i)          engage
 in any business or activity other than as set forth herein or in or as
 contemplated by the Club Trust Agreement or its amended and restated articles
 of incorporation, as applicable; 

	
 

	
 

	
 

	

          (ii)          without
the affirmative vote of a majority of the members of the board of directors
(or Persons performing similar functions) of the Club Trustee (which must
include the affirmative vote of at least one duly appointed Independent
Director (as defined in the Club Trust Agreement)), (A) dissolve or
liquidate, in whole or in part, or institute proceedings to be adjudicated
bankrupt or insolvent, (B) consent to the institution of bankruptcy or
insolvency proceedings against it, (C) file a petition seeking or consent to
reorganization or relief under any applicable federal or state law relating
to bankruptcy, (D) consent to the appointment of a receiver, liquidator,
assignee, trustee, sequestrator (or other similar official) of the
corporation or a substantial part of its property, (E) make a general
assignment for the benefit of creditors, (F) admit in writing its inability
to pay its debts generally as they become due, (G) terminate the Club
Managing Entity as manager under the Club Management Agreement or (H) take
any corporate action in furtherance of the actions set forth in clauses (A)
through (G) above; provided, however, that no director may be required by any
shareholder or beneficiary of the Club Trustee to consent to the institution
of bankruptcy or insolvency proceedings against the Club Trustee so long as
it is solvent;  

	
 

	
 

	
 

	
          (iii)          merge
 or consolidate with any other corporation, company or entity or sell all or
 substantially all of its assets or acquire all or substantially all of the
 assets or capital stock or other ownership interest of any other corporation,
 company or entity; or 

	
 

	
 

	
 

	
          (iv)          with
 respect to the Club Trustee, amend or otherwise modify its amended and
 restated articles of incorporation or any definitions contained therein in a
 manner adverse to the Indenture Trustee or any Noteholder without the prior
 written consent of the Indenture Trustee.

                    (e)          The
Club Trustee shall not incur any indebtedness other than (i) trade payables and
operating expenses (including taxes) incurred in the ordinary course of
business or (ii) in connection with servicing Resort Interests included in the
Club’s trust estate in the ordinary course of business consistent with past
practices; provided, that in no event shall the Club Trustee incur indebtedness
for borrowed money. 

          SECTION
12.7.     Representations and Warranties of the
Backup Servicer. 

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

                    (a)          Corporate
Representations. 

84

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

	
          (iii)        has
 made all filings and holds all material franchises, licenses, permits and
 registrations which are required under the laws of each jurisdiction in which
 the properties owned (or held under lease) by it or the nature of its
 activities makes such filings, franchises, licenses, permits or registrations
 necessary, except where the failure to make such filing will not have a
 material adverse effect on the Backup Servicer activities or its ability to
 perform its obligations under the Transaction Documents. 

                    (b)          Place
of Business. The address of the principal place of business and chief
executive office of the Backup Servicer is as set forth in Section 13.3 hereof
and there have been no other such locations during the immediately preceding
four months. 

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

                    (d)          Compliance
with Law. The Backup Servicer is in material compliance with all statutes,
laws and ordinances and all governmental rules and regulations to which it is
subject, the violation of which, either individually or in the aggregate, could
materially adversely affect its business, earnings, properties or condition
(financial or other). The internal policies and procedures employed by the
Backup Servicer are in material compliance with all applicable statutes, laws
and ordinances and all governmental rules and regulations. The execution,
delivery and performance of the Transaction Documents to which it is a party do
not and will not cause the Backup Servicer to be in violation of any law or
ordinance, or any order, rule or regulation, of any federal, state, municipal
or other governmental or public authority or agency where such violation would,
either individually or in the aggregate, materially adversely affect its
business, earnings, properties or condition (financial or other). 

                    (e)          Pending
Litigation or Other Proceedings. There is no pending or, to the best of the
Backup Servicer’s Knowledge, threatened action, suit, proceeding or
investigation 

85

before any
court, administrative agency, arbitrator or governmental body against or
affecting the Backup Servicer which, if decided adversely, would materially and
adversely affect (i) the condition (financial or otherwise), business or
operations of the Backup Servicer, (ii) the ability of the Backup Servicer to
perform its obligations under, or the validity or enforceability of this
Indenture or any other documents or transactions contemplated under this
Indenture, (iii) any property or title of any Obligor to any Property or (iv)
the Indenture Trustee’s ability to foreclose or otherwise enforce the Liens of
the Timeshare Loans. 

                    (f)          Taxes.
The Backup Servicer has filed all tax returns (federal, state and local) which
are required to be filed and has paid all taxes related thereto, other than
those which are being contested in good faith or where the failure to file or
pay would not have a material adverse effect on the Backup Servicer’s
activities or its ability to perform its obligations under the Transaction
Documents. 

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

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

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

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

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

                    (l)          No
Consents. No prior consent, approval or authorization of, registration,
qualification, designation, declaration or filing with, or notice to any
federal, state or local governmental or public authority or agency, is, was or
will be required for the valid execution, delivery and performance by the
Backup Servicer of the Transaction Documents to which it is a party. The Backup
Servicer has obtained all consents, approvals or authorizations of, made all
declarations or filings with, or given all notices to, all federal, state or
local governmental or public authorities or agencies which are necessary for
the continued conduct by the Backup 

86

Servicer of
its respective businesses as now conducted, other than such consents,
approvals, authorizations, declarations, filings and notices which, neither
individually nor in the aggregate, materially and adversely affect, or in the
future will materially and adversely affect, the business, earnings, prospects,
properties or condition (financial or other) of the Backup Servicer. 

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

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

ARTICLE XIII.

MISCELLANEOUS

          SECTION
13.1.     Officer’s Certificate and Opinion of
Counsel as to Conditions Precedent. 

                    Upon
any request or application by the Issuer (or any other obligor in respect of
the Notes) to the Indenture Trustee to take any action under this Indenture,
the Issuer (or such other obligor) shall furnish to the Indenture Trustee: 

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

                    (b)          at
the request of the Indenture Trustee, an Opinion of Counsel (which shall
include the statements set forth in Section 13.2 hereof) stating that, in the
opinion of such counsel, all such conditions precedent and covenants have been
complied with. 

          SECTION
13.2.     Statements Required in Certificate or
Opinion. 

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

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

87

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

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

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

          SECTION
13.3.     Notices. 

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

	
 

	
 

	
 

	
If to the
 Issuer:

	
 

	
 

	
 

	
BXG
 Receivables Note Trust 2008-A

	
 

	
c/o
 Wilmington Trust Company

	
 

	
Rodney
 Square North

	
 

	
1100 North
 Market Street

	
 

	
Wilmington,
 Delaware 19890-0001

	
 

	
Attention:
 Corporate Trust Administration

	
 

	
Fax: (302)
 636-4140

	
 

	
 

	
 

	
with a copy
 to:

	
 

	
 

	
 

	
Weinstock
 & Scavo, P.C.

	
 

	
3405
 Piedmont Road, N.E.

	
 

	
Suite 300

	
 

	
Atlanta,
 Georgia 30305

	
 

	
Attention:
 Mark I. Sanders

	
 

	
Fax: (404)
 231-1618

	
 

	
 

	
 

	
If to the
 Club Trustee:

	
 

	
 

	
 

	
Vacation
 Trust, Inc.

	
 

	
4950
 Communication Avenue

	
 

	
Suite 900

	
 

	
Boca Raton,
 Florida 33431

	
 

	
Attention:
 James R. Martin

	
 

	
Fax: (561)
 912-7999

	
 

	
 

	
 

	
If to the
 Servicer:

88

	
 

	
 

	
 

	
Bluegreen
 Corporation

	
 

	
4960
 Conference Way North, Suite 100

	
 

	
Boca Raton,
 Florida 33431

	
 

	
Attention:
 Anthony M. Puleo, Senior Vice President, CFO and Treasurer

	
 

	
Fax: (561)
 912-8123

	
 

	
 

	
 

	
with a copy
 to:

	
 

	
 

	
 

	
Weinstock
 & Scavo, P.C.

	
 

	
3405
 Piedmont Road, N.E.

	
 

	
Suite 300

	
 

	
Atlanta,
 Georgia 30305

	
 

	
Attention: Mark
 I. Sanders

	
 

	
Fax: (404)
 231-1618

	
 

	
 

	
 

	
If to the
 Backup Servicer:

	
 

	
 

	
 

	
Concord
 Servicing Corporation

	
 

	
4725 North
 Scottsdale Road

	
 

	
Suite 300

	
 

	
Scottsdale,
 Arizona 85251

	
 

	
Fax: (480)
 281-3141

	
 

	
Attention:
 Frederick G. Pink, Esq.

	
 

	
 

	
 

	
If to the
 Indenture Trustee and Paying Agent:

	
 

	
 

	
 

	
U.S. Bank
 National Association

	
 

	
60
 Livingston Avenue

	
 

	
EP-MN-WS3D

	
 

	
St. Paul,
 Minnesota 55107

	
 

	
Attention:     Structured
 Finance/BXG Receivables Note Trust 2008-A

	
 

	
Fax: (651)
 495-8090

	
 

	
Telephone
 Number: (651) 495-3880

	
 

	
 

	
 

	
If to the
 Rating Agency:

	
 

	
 

	
 

	
Moody’s
 Investors Service, Inc.

	
 

	
99 Church
 Street

	
 

	
New York,
 New York 10007

	
 

	
Attention:
 AFG – Data Monitoring Group

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

89

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

          SECTION
13.4.     No Proceedings. 

                    The
Noteholders, the Servicer, the Indenture Trustee, the Custodian, the Club
Trustee and the Backup Servicer each hereby agrees that it will not, directly
or indirectly institute, or cause to be instituted, against the Issuer, the
Trust Estate or the Depositor any proceeding of the type referred to in
Sections 6.1(d) and (e) hereof, so long as there shall not have elapsed one
year plus one day after payment in full of the Notes. 

          SECTION
13.5.     Limitation of Liability of Owner Trustee.

                    Notwithstanding
anything contained herein or in any other Transaction Document to the contrary,
it is expressly understood and agreed by the parties hereto that (a) this
Indenture is executed and delivered by Wilmington Trust Company, not
individually or personally, but solely as Owner Trustee on behalf of the
Issuer, in the exercise of the powers and authority conferred and vested in it
under the Trust Agreement, (b) each of the representations, undertakings and
agreements herein made on the part of the Issuer is made and intended not as a
personal representation, undertaking or agreement by Wilmington Trust Company
but is made and intended for the purpose for binding only the Issuer and the
Trust Estate, and (c) under no circumstances shall Wilmington Trust Company be
personally liable for the payment of any indebtedness or expenses of the Issuer
or be liable for the breach or failure of any obligation, representation,
warranty or covenant made or undertaken by the Issuer under this Indenture or
any other related documents. 

90

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

	
 

	
 

	
 

	
 

	
 

	
BXG
 RECEIVABLES NOTE TRUST 2008-A,

	
 

	
 

	
 

	
 

	
 

	
By:

	
Wilmington
 Trust Company, as Owner Trustee

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
Name:

	
 

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
 

	
BLUEGREEN
 CORPORATION,

	
 

	
as Servicer

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	

	
 

	
 

	
Name:
 Anthony M. Puleo

	
 

	
 

	
Title:
 Senior Vice President, CFO & Treasurer

	
 

	
 

	
 

	
 

	
 

	
CONCORD
 SERVICING CORPORATION,

	
 

	
as Backup
 Servicer

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
 

	
VACATION
 TRUST, INC.,

	
 

	
as Club
 Trustee

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
 

	
U.S. BANK
 NATIONAL ASSOCIATION,

	
 

	
as Indenture
 Trustee

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

[Signature Page to the Indenture]

91Exhibit 10.197

Execution Copy

(Depositor to Issuer)

SALE AGREEMENT

                    This
SALE AGREEMENT (this “Agreement”), dated
as of March 15, 2008 is by and among BRFC 2008-A LLC, a Delaware limited
liability company (the ”Depositor”), and BXG Receivables Note Trust
2008-A, a statutory trust formed under the laws of the State of Delaware (the “Issuer”),
and their respective permitted successors and assigns.

W I T N E S S
E T
H:

                    WHEREAS,
on the Closing Date, (i) the Depositor intends to sell and the Issuer intends
to purchase the Initial Timeshare Loans and the Closing Date Eligible
Investments, and (ii) the Issuer intends to pledge the Trust Estate (including
all Subsequent Timeshare Loans acquired by the Issuer from time to time) to
U.S. Bank National Association, a national banking association, as Indenture
Trustee (the “Indenture Trustee”),pursuant to an indenture, dated as of
March 15, 2008 (the “Indenture”),by and among the Issuer,
Bluegreen Corporation (“Bluegreen” or the “Club Originator”), a
Massachusetts corporation, in its capacity as Servicer (the “Servicer”),
Vacation Trust, Inc., a Florida corporation, as Club Trustee (the “Club
Trustee”)
and the Indenture Trustee, to secure the Issuer’s 5.885% Timeshare Loan-Backed
Notes, Series 2008-A, Class A, 6.880% Timeshare Loan-Backed Notes, Series
2008-A, Class B, 7.870% Timeshare Loan-Backed Notes, Series 2008-A, Class C,
9.100% Timeshare Loan-Backed Notes, Series 2008-A, Class D, 10.085% Timeshare
Loan-Backed Notes, Series 2008-A, Class E, 10.810% Timeshare Loan-Backed Notes,
Series 2008-A, Class F and 11.630% Timeshare Loan-Backed Notes, Series 2008-A,
Class G (collectively, the “Notes”);

                    WHEREAS,
on each Transfer Date during the Prefunding Period (i) the Depositor intends to
sell and the Issuer intends to purchase one or more Subsequent Timeshare Loans
and (ii) by operation of the Indenture, the Issuer shall pledge such Subsequent
Timeshare Loans to the Indenture Trustee to secure the Issuer’s Notes.

                    WHEREAS,
the Depositor may, and in certain circumstances will be required to cure,
repurchase or substitute and provide Qualified Substitute Timeshare Loans for
Defective Timeshare Loans, previously sold to the Issuer hereunder and pledged
to the Indenture Trustee pursuant to the Indenture; and

                    WHEREAS,
the Depositor may, at the direction of the Club Originator, be required to
exercise the Club Originator’s option to purchase or substitute Timeshare Loans
that become subject to an Upgrade or Defaulted Timeshare Loans previously sold
to the Issuer hereunder and pledged to the Indenture Trustee pursuant to the
Indenture.

                    NOW,
THEREFORE, in consideration of the mutual covenants set forth herein, and for
other valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto covenant and agree as follows:

                              Definitions;
Interpretation. Capitalized terms used but not defined herein shall have
the meanings specified in “Standard Definitions” attached as Annex A to
the Indenture.

                              Acquisition
of Timeshare Loans and Closing Date Eligible Investments.

                              (i)          Initial
Timeshare Loans. On the Closing Date, in return for the Timeshare Loan
Acquisition Price for each Timeshare Loan to be sold on the Closing Date, to be
paid in part in cash and in part as an increase in the value of the Residual
Interest Certificate held by the Depositor, the Depositor does hereby transfer,
assign, sell and grant to the Issuer, without recourse (except as provided in
Section 6 and Section 8 hereof), any and all of the Depositor’s right, title
and interest in and to (i) the Initial Timeshare Loans listed on Schedule
III hereto, (ii) the Receivables in respect of such Timeshare Loans due
after the related Cut-Off Date, (iii) the related Timeshare Loan Documents
(excluding any rights as developer or declarant under the Timeshare
Declaration, the Timeshare Program Consumer Documents or the Timeshare Program
Governing Documents), (iv) all Related Security in respect of each Initial
Timeshare Loan, (v) the Depositor’s rights and remedies under the Transfer
Agreement and the Bluegreen Purchase Agreement including, but not limited to,
its rights with respect to the representations and warranties of the Club
Originator therein, together with all rights of the Depositor with respect to
any breach thereof including any right to require the Club Originator to cure,
repurchase or substitute any Defective Timeshare Loans in accordance with the
provisions of the Transfer Agreement and the Bluegreen Purchase Agreement, and
(vi) all income, payments, proceeds and other benefits and rights related to
any of the foregoing. Upon such sale and transfer, the ownership of each
Initial Timeshare Loan and all collections allocable to principal and interest
thereon after the related Cut-Off Date and all other property interests or
rights conveyed pursuant to and referenced in this Section 2(a)(i) shall immediately
vest in the Issuer, its successors and assigns. The Depositor shall not take
any action inconsistent with such ownership nor claim any ownership interest in
any Initial Timeshare Loan for any purpose whatsoever other than for federal
and state income tax reporting, if applicable. The parties to this Agreement
hereby acknowledge that the “credit risk” of the Initial Timeshare Loans
conveyed hereunder shall be borne by the Issuer and its subsequent assignees. 

          (ii)          Subsequent
Timeshare Loans. On the related Transfer Date during the Prefunding Period,
in return for an amount equal to the Timeshare Loan Acquisition Price of each
of the Subsequent Timeshare Loans to be sold on such date, to be paid in part in cash and in part as
an increase in the value of the Residual Interest Certificate held by the
Depositor, the Depositor does hereby transfer, assign, sell and grant to
the Issuer, without recourse (except as provided in Section 6 and Section 8
hereof), any and all of the Depositor’s right, title and interest in and to (i)
the Subsequent Timeshare Loans listed on the Schedule of Timeshare Loans
attached to the related Subsequent Transfer Notice, (ii) the Receivables in
respect of the Subsequent Timeshare Loans due after the related Cut-Off Date,
(iii) the related Timeshare Loan Documents (excluding any rights as developer
or declarant under the Timeshare Declaration, the Timeshare Program Consumer
Documents or the Timeshare Program Governing Documents), (iv) all Related
Security in respect of each Subsequent Timeshare Loan, (v) the Depositor’s
rights and remedies under the Bluegreen Purchase Agreement including, but not
limited to, its rights with respect to the representations and warranties of
the Club Originator therein, together with all rights of the Depositor with
respect to any breach thereof including any right to require the Club
Originator to

2

cure, repurchase or substitute any Defective Timeshare
Loans in accordance with the provisions of the Bluegreen Purchase Agreement,
and (vi) all income, payments, proceeds and other benefits and rights related
to any of the foregoing. Upon such sale and transfer, the ownership of each
Subsequent Timeshare Loan and all collections allocable to principal and
interest thereon after the related Cut-Off Date and all other property
interests or rights conveyed pursuant to and referenced in this Section
2(a)(ii) shall immediately vest in the Issuer, its successors and assigns. The
Depositor shall not take any action inconsistent with such ownership nor claim
any ownership interest in any Subsequent Timeshare Loan for any purpose
whatsoever other than for federal and state income tax reporting, if
applicable. The parties to this Agreement hereby acknowledge that the “credit
risk” of the Subsequent Timeshare Loans conveyed hereunder shall be borne by
the Issuer and its subsequent assignees.

          (iii)          Closing
Date Eligible Investments. On the Closing Date, in return for an amount
equal to the sum of the Prefunding Account Initial Deposit and the Capitalized
Interest Account Initial Deposit, the Depositor does hereby transfer, assign,
sell and grant to the Issuer, without recourse (except as provided in Section 6
and Section 8 hereof), any and all of the Depositor’s right, title and interest
in and to the Closing Date Eligible Investments (the property in Section
2(a)(i), 2(a)(ii) and this Section 2(a)(iii), the “Assets”). The Depositor shall not take any action inconsistent
with such ownership nor claim any ownership interest in any Closing Date
Eligible Investment for any purpose whatsoever other than for federal and state
income tax reporting, if applicable. 

                              Delivery
of Timeshare Loan Documents. In connection with the sale, transfer,
assignment and conveyance of any Timeshare Loan hereunder, the Issuer hereby
directs the Depositor and the Depositor hereby agrees to deliver or cause to be
delivered, on the Closing Date (with respect to any Initial Timeshare Loan), at
least five Business Days prior to each Transfer Date during the Prefunding
Period (with respect to any Subsequent Timeshare Loan) and on or within five
Business Days from each Transfer Date (with respect to any Qualified Substitute
Timeshare Loan), as applicable, to the Custodian all related Timeshare Loan
Files and to the Servicer all related Timeshare Loan Servicing Files.

                              Collections.
The Depositor shall deposit or cause to be deposited all collections in
respect of the Timeshare Loans received by the Depositor or its Affiliates
after the related Cut-Off Date in the Lockbox Account and, with respect to
Credit Card Timeshare Loans, direct each applicable credit card vendor to
deposit all payments in respect of such Credit Card Timeshare Loans to the
Credit Card Account (net of the Servicer Credit Card Processing Costs).

                              Limitation
of Liability. None of the Issuer, the Depositor or any subsequent assignee
of the Issuer shall have any obligation or liability with respect to any
Timeshare Loan nor shall the Issuer, the Depositor or any subsequent assignee
have any liability to any Obligor in respect of any Timeshare Loan. No such
obligation or liability is intended to be assumed by the Issuer, the Depositor
or any subsequent assignee herewith and any such liability is hereby expressly
disclaimed.

                              Intended
Characterization; Grant of Security Interest. It is the intention of the
parties hereto that each transfer of the Closing Date Eligible Investments and
Timeshare 

3

Loans to be made pursuant to the terms hereof shall
constitute a sale by the Depositor to the Issuer and not a loan secured by the
Closing Date Eligible Investments and the Timeshare Loans. In the event,
however, that a court of competent jurisdiction were to hold that any such
transfer constitutes a loan and not a sale, it is the intention of the parties
hereto that the Depositor shall be deemed to have granted to the Issuer as of
the date hereof a first priority perfected security interest in all of the
Depositor’s right, title and interest in, to and under the Assets specified in
Section 2 hereof and the proceeds thereof and that with respect to such
transfer, this Agreement shall constitute a security agreement under applicable
law. In
the event of the characterization of any such transfer as a loan, the amount of
interest payable or paid with respect to such loan under the terms of this
Agreement shall be limited to an amount which shall not exceed the maximum
non-usurious rate of interest allowed by the applicable state law or any
applicable law of the United States permitting a higher maximum non-usurious
rate that preempts such applicable state law, which could lawfully be
contracted for, charged or received (the “Highest Lawful Rate”). In the event any
payment of interest on any such loan exceeds the Highest Lawful Rate, the
parties hereto stipulate that (a) to the extent possible given the term of such
loan, such excess amount previously paid or to be paid with respect to such
loan be applied to reduce the principal balance of such loan, and the
provisions thereof immediately be deemed reformed and the amounts thereafter
collectible thereunder reduced, without the necessity of the execution of any
new document, so as to comply with the then applicable law, but so as to permit
the recovery of the fullest amount otherwise called for thereunder and (b) to
the extent that the reduction of the principal balance of, and the amounts
collectible under, such loan and the reformation of the provisions thereof
described in the immediately preceding clause (a) is not possible given the
term of such loan, such excess amount will be deemed to have been paid with
respect to such loan as a result of an error and upon discovery of such error
or upon notice thereof by any party hereto such amount shall be refunded by the
recipient thereof.

          The
characterization of the Depositor as “debtor” and the Issuer as “secured party”
in any such security agreement and any related financing statements required
hereunder is solely for protective purposes and shall in no way be construed as
being contrary to the intent of the parties that this transaction be treated as
a sale to the Issuer of the Depositor’s entire right, title and interest in and
to the Assets.

          Each
of the Depositor, the Club, the Club Trustee and any of their Affiliates,
hereby agrees to make the appropriate entries in its general accounting records
to indicate that the Closing Date Eligible Investments and the Timeshare Loans
have been transferred to the Issuer, pledged to the Indenture Trustee and
constitute a part of the Issuer’s estate in accordance with the terms of the
Trust created under the Trust Agreement.

                              Conditions
Precedent to Acquisition of Timeshare Loans and Closing Date Eligible
Investments by the Issuer. The obligations of the Issuer to purchase any
Timeshare Loans and Closing Date Eligible Investments hereunder shall be
subject to the satisfaction of the following conditions: 

                              All
representations and warranties of the Depositor contained in Section 5 and in
Schedule I hereof, and all information provided in the Schedule of Timeshare
Loans or as updated with respect to the related Subsequent Transfer Notice or
the Schedule of Eligible 

4

Investments shall be true and correct as of the
Closing Date or Transfer Date, as applicale, and the Depositor shall have
delivered to the Issuer, the Indenture Trustee and the Initial Purchaser an
Officer’s Certificate to such effect.

                              On
or prior to the Closing Date or a Transfer Date (or, with respect to Qualified
Substitute Timeshare Loans, as provided for in Section 6(g) hereof), as
applicable, the Depositor shall have delivered or shall have caused the
delivery of (i) the related Timeshare Loan Files to the Custodian and the
Custodian shall have delivered a Custodian’s Certification therefor pursuant to
the Custodial Agreement and (ii) the Timeshare Loan Servicing Files to the
Servicer. 

                              The
Depositor shall have delivered or caused to be delivered all other information
theretofore required or reasonably requested by the Issuer to be delivered by
the Depositor or performed or caused to be performed all other obligations
required to be performed as of the Closing Date or the Transfer Date, as the
case may be, including all filings, recordings and/or registrations as may be
necessary in the reasonable opinion of the Issuer or the Indenture Trustee to
establish and preserve the right, title and interest of the Issuer or the
Indenture Trustee, as the case may be, in the related Timeshare Loans and
Closing Date Eligible Investments.

                              On
or before the Closing Date, the Issuer, the Servicer, the Club Trustee, the
Backup Servicer and the Indenture Trustee shall have entered into the
Indenture.

                              The
Notes shall be issued and sold on the Closing Date, the Issuer shall receive
the full consideration due it upon the issuance of the Notes, and the Issuer
shall have applied such consideration, to the extent necessary, to pay the
Timeshare Loan Acquisition Price for each Initial Timeshare Loan and to pay for
the Closing Date Eligible Investments.

                              With
respect to Subsequent Timeshare Loans, the Issuer shall apply funds from the
Prefunding Account, to the extent necessary, to pay the Depositor the Timeshare
Loan Acquisition Price for each Subsequent Timeshare Loan. 

                              Each
Subsequent Timeshare Loan conveyed on a Transfer Date shall be an Eligible
Timeshare Loan and each of the conditions herein and in the Indenture for the
purchase of Subsequent Timeshare Loans shall have been satisfied.

                              Each
Qualified Substitute Timeshare Loan replacing a Timeshare Loan shall satisfy
each of the criteria specified in the definition of “Qualified Substitute
Timeshare Loan” and each of the conditions herein and in the Indenture for
substitution of Timeshare Loans shall have been satisfied.

                              The
Issuer shall have received such other certificates and opinions as it shall
reasonably request.

                              Representations
and Warranties and Certain Covenants of the Depositor.

                              The
Depositor represents and warrants to the Issuer and the Indenture Trustee for
the benefit of the Noteholders, on the Closing Date and on each Transfer Date
(with 

5

respect to only the Subsequent Timeshare Loans or
Qualified Substitute Timeshare Loans transferred on such Transfer Date) as
follows:

	
 

	
 

	
 

	
                    (i)
  Due Formation; Valid Existence; Good Standing. It is a limited
  liability company duly organized and validly existing in good standing under
  the laws of the jurisdiction of its formation; and is duly qualified to do
  business as a foreign entity and in good standing under the laws of each
  jurisdiction where the character of its property, the nature of its business
  or the performance of its obligations under this Agreement makes such
  qualification necessary, except where the failure to be so qualified will not
  have a material adverse effect on its business or its ability to perform its
  obligations under this Agreement or any other Transaction Document to which it
  is a party or under the transactions contemplated hereunder or thereunder or
  the validity or enforceability of any Timeshare Loans.

	
 

	
 

	
 

	
                    (ii)
Possession of Licenses, Certificates,
  Franchises and Permits. It holds, and at all times during the term of
  this Agreement will hold, all material licenses, certificates, franchises and
  permits from all governmental authorities necessary for the conduct of its
  business, and has received no notice of proceedings relating to the
  revocation of any such license, certificate, franchise or permit, which
  singly or in the aggregate, if the subject of an unfavorable decision, ruling
  or finding, would materially and adversely affect its ability to perform its
  obligations under this Agreement or any other Transaction Document to which
  it is a party or under the transactions contemplated hereunder or thereunder
  or the validity or enforceability of any Timeshare Loans.

	
 

	
 

	
 

	
                    (iii)
  Company Authority and Power. It has, and at all times during the term
  of this Agreement will have, all requisite company power and authority to own
  its properties, to conduct its business, to execute and deliver this
  Agreement and all documents and transactions contemplated hereunder and to
  perform all of its obligations under this Agreement and any other Transaction
  Document to which it is a party or under the transactions contemplated
  hereunder or thereunder. It has all requisite company power and authority to
  acquire, own, transfer and convey the Timeshare Loans to the Issuer.

	
 

	
 

	
 

	
                    (iv)
  Authorization, Execution and Delivery Valid and Binding. This
  Agreement and all other Transaction Documents and instruments required or
  contemplated hereby to be executed and delivered by it have been duly
  authorized, executed and delivered by it and, assuming the due execution and
  delivery by, the other party or parties hereto and thereto, constitute
  legal, valid and binding agreements enforceable against it in accordance with
  their respective terms subject, as to enforceability, to bankruptcy,
  insolvency, reorganization, liquidation, dissolution, moratorium and other
  similar applicable laws affecting the enforceability of creditors’ rights
  generally applicable in the event of the bankruptcy, insolvency, reorganization,
  liquidation or dissolution, as applicable, of it and to general principles of
  equity, regardless of whether such enforceability shall be considered in a
  proceeding in equity or at law. This Agreement constitutes a valid transfer
  of its interest in the Timeshare Loans to the Issuer or, in the event of the
  characterization of any such transfer as a loan, the valid 

6

	
 

	
 

	
 

	
creation of a first priority perfected security
  interest in such Timeshare Loans in favor of the Issuer.

	
 

	
 

	
 

	
                    (v)
  No Violation of Law, Rule, Regulation, etc. The execution, delivery
  and performance by it of this Agreement and any other Transaction Document to
  which it is a party do not and will not (A) violate any of the provisions of
  its certificate of formation or limited liability company agreement, (B)
  violate any provision of any law, governmental rule or regulation currently
  in effect applicable to it or its properties or by which it or its properties
  may be bound or affected, including, without limitation, any bulk transfer
  laws, where such violation would have a material adverse effect on its
  ability to perform its obligations under this Agreement or any other
  Transaction Document to which it is a party or under the transactions
  contemplated hereunder or thereunder or the validity or enforceability of the
  Timeshare Loans, (C) violate any judgment, decree, writ, injunction, award,
  determination or order currently in effect applicable to it or its properties
  or by which it or its properties are bound or affected, where such violation
  would have a material adverse effect on its ability to perform its
  obligations under this Agreement or any other Transaction Document to which
  it is a party or under the transactions contemplated hereunder or thereunder
  or the validity or enforceability of any Timeshare Loans, (D) conflict with,
  or result in a breach of, or constitute a default under, any of the
  provisions of any indenture, mortgage, deed of trust, contract or other
  instrument to which it is a party or by which it is bound where such
  violation would have a material adverse effect on its ability to perform its
  obligations under this Agreement or any other Transaction Document to which
  it is a party or under the transactions contemplated hereunder or thereunder
  or the validity or enforceability of Timeshare Loans or (E) result in the
  creation or imposition of any Lien upon any of its properties pursuant to the
  terms of any such indenture, mortgage, deed of trust, contract or other
  instrument.

	
 

	
 

	
 

	
                    (vi)
  Governmental Consent. No consent, approval, order or authorization of,
  and no filing with or notice to, any court or other Governmental Authority in
  respect of it is required which has not been obtained in connection with the
  authorization, execution, delivery or performance by it of this Agreement or
  any of the other Transaction Documents to which it is a party or under the
  transactions contemplated hereunder or thereunder, including, without
  limitation, the transfer of Timeshare Loans and the creation of the security
  interest of the Issuer therein pursuant to Section 3 hereof.

	
 

	
 

	
 

	
                    (vii)
  Defaults. It is not in default under any material agreement, contract,
  instrument or indenture to which it is a party or by which it or its
  properties is or are bound, or with respect to any order of any court,
  administrative agency, arbitrator or governmental body, in each case, which
  would have a material adverse effect on the transactions contemplated
  hereunder or on its business, operations, financial condition or assets, and
  no event has occurred which with notice or lapse of time or both would
  constitute such a default with respect to any such agreement, contract,
  instrument or indenture, or with respect to any such order of any court,
  administrative agency, arbitrator or governmental body.

7

	
 

	
 

	
 

	
                    (viii)
  Insolvency. It is solvent and will not be rendered insolvent by the
  transfer of any Timeshare Loans hereunder. On and after the Closing Date, it
  will not engage in any business or transaction the result of which would
  cause the property remaining with it to constitute an unreasonably small
  amount of capital.

	
 

	
 

	
 

	
                    (ix)
  Pending Litigation or Other Proceedings. Other than as described in
  the Offering Circular, as of the Closing Date, there is no pending or, to its
  Knowledge, threatened action, suit, proceeding or
  investigation before any court, administrative agency, arbitrator or
  governmental body against or affecting it which, if decided adversely, would
  materially and adversely affect (A) its condition (financial or otherwise),
  business or operations, (B) its ability to perform its obligations under, or
  the validity or enforceability of, this Agreement or any other documents or
  transactions contemplated under this Agreement, (C) any Timeshare Loan or
  title of any Obligor to any related Timeshare Property pursuant to the
  applicable Owner Beneficiary Agreement or (D) the Issuer’s or the Indenture
  Trustee’s ability to foreclose or otherwise enforce the liens of the Mortgage
  Notes and the rights of the Obligors to use and occupy the related Timeshare
  Properties pursuant to the applicable Owner Beneficiary Agreement.

	
 

	
 

	
 

	
                    (x)
  Information. No document, certificate or report furnished or required
  to be furnished by or on behalf of it pursuant to this Agreement, in its
  capacity as Depositor, contains or will contain when furnished any untrue
  statement of a material fact or fails or will fail to state a material fact
  necessary in order to make the statements contained therein not misleading in
  light of the circumstances in which it was made. There are no facts known to
  it which, individually or in the aggregate, materially adversely affect, or
  which (aside from general economic trends) may reasonably be expected to
  materially adversely affect in the future, the financial condition or assets
  or its business, or which may impair the ability of it to perform its
  obligations under this Agreement, which have not been disclosed herein or
  therein or in the certificates and other documents furnished to the Issuer by
  or on behalf of it specifically for use in connection with the transactions
  contemplated hereby or thereby.

	
 

	
 

	
 

	
                    (xi)
  Foreign Tax Liability. It is not aware of any Obligor under a Timeshare
  Loan who has withheld any portion of payments due under such Timeshare Loan
  because of the requirements of a foreign taxing authority, and no foreign
  taxing authority has contacted it concerning a withholding or other foreign
  tax liability.

	
 

	
 

	
 

	
                    (xii)
  Employee Benefit Plan Liability. As of the Closing Date and each
  Transfer Date, as applicable, (A) no “accumulated funding deficiency” (as
  such term is defined under ERISA and the Code), whether or not waived, exists
  with respect to any “employee pension benefit plan” (as such term is defined
  under ERISA) sponsored, maintained or contributed to by it or any of its
  Affiliates, and, to its Knowledge, no event has occurred or circumstance
  exists that may result in an accumulated funding deficiency as of the last
  day of the current plan year of any such plan; (B) it and each of its
  Affiliates has made all contributions required under each multiemployer plan
  (as such term is defined under ERISA) (a “Multiemployer Plan”) to
  which it or any of its Affiliates contributes or in which it or any of its
  Affiliates participates (a “Depositor Multiemployer Plan”); and 

8

	
 

	
 

	
 

	
 

	
(C) neither it nor any of its Affiliates has
  withdrawn from any Multiemployer Plan with respect to which there is any outstanding
  liability and, to its Knowledge, no event has occurred or circumstance exists
  that presents a risk of the occurrence of any withdrawal from, or the
  partition, termination, reorganization or insolvency of, any Depositor
  Multiemployer Plan that could result in any liability to it.

	
 

	
 

	
 

	
 

	
                    (xiii)
  Taxes. It, as of the Closing Date, (A) has filed all tax returns
  (federal, state and local) which it reasonably believes are required to be
  filed and has paid or made adequate provision in its GAAP financial
  statements for the payment of all taxes, assessments and other governmental
  charges due from it or is contesting any such tax, assessment or other
  governmental charge in good faith through appropriate proceedings or except
  where the failure to file or pay will not have a material adverse effect on
  the rights and interests of the Issuer or any of its subsequent assignees,
  (B) knows of no basis for any material additional tax assessment for any
  fiscal year for which adequate reserves in its GAAP financial statements have
  not been established and (C) intends to pay all such taxes, assessments and
  governmental charges, if any, when due.

	
 

	
 

	
 

	
 

	
                    (xiv)
  Place of Business. The principal place of business and chief executive
  office where it keeps its records concerning Timeshare Loans will be 4950
  Communication Avenue, Suite 900, Boca Raton, Florida 33431 (or such other
  place specified by it by written notice to the Issuer and the Indenture
  Trustee). It is a limited liability company formed under the laws of the
  State of Delaware.

	
 

	
 

	
 

	
 

	
                    (xv)
  Securities Laws. It is not an “investment company” or a company
  “controlled” by an “investment company” within the meaning of the Investment
  Company Act of 1940, as amended. No portion of the Timeshare Loan Acquisition
  Price for each of the Timeshare Loans or the price of the Closing Date
  Eligible Investments will be used by it to acquire any security in any
  transaction which is subject to Section 13 or Section 14 of the Securities
  Exchange Act of 1934, as amended.

	
 

	
 

	
 

	
 

	
                    (xvi)
  Bluegreen Vacation Club. With respect to the Club Loans:

	
 

	
 

	
 

	
 

	
 

	
                       (A)
  The Club Trust Agreement, of which a true and correct copy is attached hereto
  as Exhibit B is in full force and effect; and a certified copy of the
  Club Trust Agreement has been delivered to the Indenture Trustee together
  with all amendments and supplements in respect thereof; 

	
 

	
 

	
 

	
 

	
 

	
                       (B)
  The arrangement of contractual rights and obligations (duly established in
  accordance with the Club Trust Agreement under the laws of the State of
  Florida) was established for the purpose of holding and preserving certain
  property for the benefit of the Beneficiaries referred to in the Club Trust Agreement.
  The Club Trustee has all necessary trust and other authorizations and powers
  required to carry out its obligations under the Club Trust Agreement in the
  State of Florida and in all other states in which it holds Resort Interests.
  The Club is not a corporation or business trust under the laws of the State
  of Florida. The 

9

	
 

	
 

	
 

	
Club is not taxable as an association, corporation
  or business trust under federal law or the laws of the State of Florida;

	
 

	
 

	
 

	
                       (C)
  The Club Trustee is a corporation duly formed, validly existing and in good
  standing under the laws of the State of Florida. As of the Closing Date, the
  Club Trustee is qualified to do business as a foreign corporation and is in
  good standing under the laws of the state of Tennessee. As of each Transfer
  Date, the Club Trustee will be duly qualified to do business as a foreign
  corporation and will be in good standing under the laws of each jurisdiction
  it is required by law to be. The Club Trustee is not an affiliate of the Servicer
  for purposes of Chapter 721, Florida Statutes and is in compliance with the
  requirements of such Chapter 721 requiring that it be independent of the
  Servicer; 

	
 

	
 

	
 

	
                       (D)
  The Club Trustee has all necessary corporate power to execute and deliver,
  and has all necessary corporate power to perform its obligations under this
  Agreement, the other Transaction Documents to which it is a party, the Club
  Trust Agreement and the Club Management Agreement. The Club Trustee possesses
  all requisite franchises, operating rights, licenses, permits, consents,
  authorizations, exemptions and orders as are necessary to discharge its
  obligations under the Club Trust Agreement; 

	
 

	
 

	
 

	
                       (E)
  The Club Trustee holds all right, title and interest in and to all of the
  Timeshare Properties related to the Club Loans solely for the benefit of the
  Beneficiaries referred to in, and subject in each case to the provisions of,
  the Club Trust Agreement and the other documents and agreements related thereto.
  Except with respect to the Mortgages (or a pledge of the Co-op Shares in
  connection with Aruba Club Loans), the Club Trustee has permitted none of
  such Timeshare Properties to be made subject to any lien or encumbrance
  during the time it has been a part of the trust estate under the Club Trust
  Agreement;

	
 

	
 

	
 

	
                       (F)
  There are no actions, suits, proceedings, orders or injunctions pending
  against the Club or the Club Trustee, at law or in equity, or before or by
  any governmental authority which, if adversely determined, could reasonably
  be expected to have a material adverse effect on the Trust Estate or the Club
  Trustee’s ability to perform its obligations under the Transaction Documents;
  

	
 

	
 

	
 

	
                       (G)
  Neither the Club nor the Club Trustee has incurred any indebtedness for
  borrowed money (directly, by guarantee, or otherwise); 

	
 

	
 

	
 

	
                       (H)
  All ad valorem taxes and other taxes and assessments against the Club and/or
  its trust estate have been paid when due and neither the Depositor nor the
  Club Trustee knows of any basis for any additional taxes or assessments
  against any such property. The Club has filed all required tax returns and
  has paid all taxes shown to be due and payable on such returns, including all
  taxes in respect of sales of Owner Beneficiary Rights (as defined in the Club
  Trust Agreement) and Vacation Points, if any; 

10

	
 

	
 

	
 

	
                       (I)
  The Club and the Club Trustee are in compliance in all material respects with
  all applicable laws, statutes, rules and governmental regulations applicable
  to it and in compliance with each material instrument, agreement or document
  to which it is a party or by which it is bound, including, without
  limitation, the Club Trust Agreement; 

	
 

	
 

	
 

	
                       (J)
  Except as expressly permitted in the Club Trust Agreement, the Club has
  maintained the One-to-One Beneficiary to Accommodation Ratio (as such terms
  are defined in the Club Trust Agreement); 

	
 

	
 

	
 

	
                       (K)
  Bluegreen Vacation Club, Inc. is a not-for-profit corporation duly formed,
  validly existing and in good standing under the laws of the State of Florida;
  

	
 

	
 

	
 

	
                       (L)
  Upon purchase of the Club Loans and related Trust Estate hereunder, the
  Issuer is an “Interest Holder Beneficiary” under the Club Trust Agreement and
  each of the Club Loans constitutes “Lien Debt”, “Purchase Money Lien Debt”
  and “Owner Beneficiary Obligations” under the Club Trust Agreement; and

	
 

	
 

	
 

	
                       (M)
  Except as disclosed to the Indenture Trustee in writing or noted in the
  Custodian’s Certification, each Mortgage associated with a Deeded Club Loan
  and granted by the Club Trustee or the Obligor on the related Deeded Club
  Loan, as applicable, has been duly executed, delivered and recorded by or
  pursuant to the instructions of the Club Trustee under the Club Trust
  Agreement and such Mortgage is valid and binding and effective to create the
  lien and security interests in favor of the Indenture Trustee (upon
  assignment thereof to the Indenture Trustee). Each of such Mortgages was
  granted in connection with the financing of a sale of a Resort Interest. 

	
 

	
 

	
                              The
  Depositor hereby represents and warrants to the Issuer and the Indenture
  Trustee that it has entered into the Transfer Agreement and the Bluegreen
  Purchase Agreement, that the Club Originator has made the representations and
  warranties in the Transfer Agreement and the Bluegreen Purchase Agreement as
  set forth therein, that such representations and warranties run to and are
  for the benefit of the Depositor, the Issuer, the Indenture Trustee and the
  Noteholders, and that pursuant to Section 2 hereof, the Depositor has
  transferred and assigned to the Issuer all rights and remedies under the
  Transfer Agreement and the Bluegreen Purchase Agreement.

	
 

	
                              The
  Transfer Agreement and the Bluegreen Purchase Agreement, including the other
  Transaction Documents contemplated thereby, are the only agreements pursuant
  to which the Depositor acquires ownership of the Timeshare Loans. To the
  Knowledge of the Depositor, the representations and warranties of the Club
  Originator under the Transfer Agreement and the Bluegreen Purchase Agreement
  are true and correct.

11

                              In
consideration of Sections 5(b) and (c) hereof, (i) the Depositor hereby makes
the representations and warranties relating to the Timeshare Loans contained in
Schedule I hereto for the benefit of the Issuer and the Indenture
Trustee for the benefit of the Noteholders as of the Closing Date (with respect
to each Initial Timeshare Loan transferred on the Closing Date) and as of each
Transfer Date (with respect to each Subsequent Timeshare Loan or Qualified
Substitute Timeshare Loan transferred on such Transfer Date), as applicable,
and (ii) the Depositor hereby represents and warrants that each Closing Date
Eligible Investment is an Eligible Investment for the benefit of the Issuer and
the Indenture Trustee for the benefit of the Noteholders as of the Closing
Date.

                              It
is understood and agreed that the representations and warranties set forth in
this Section 5 shall survive the sale of each Timeshare Loan sold hereunder to
the Issuer and any assignment of such Timeshare Loan by the Issuer to the
Indenture Trustee on behalf of the Noteholders and shall continue so long as
any such Timeshare Loans shall remain outstanding or until such time as such
Timeshare Loans are repurchased, purchased or a Qualified Substitute Timeshare
Loan is provided pursuant to Section 6 hereof. The Depositor acknowledges that
it has been advised that the Issuer intends to assign all of its right, title
and interest in and to each Timeshare Loan sold hereunder and its rights and
remedies under this Agreement to the Indenture Trustee on behalf of the
Noteholders. The Depositor agrees that, upon any such assignment, the Indenture
Trustee may enforce directly, without joinder of the Issuer (but subject to any
defense that the Depositor may have under this Agreement) all rights and
remedies hereunder.

                              With
respect to any representations and warranties contained in Section 5 hereof
which are made to the Depositor’s Knowledge, if it is discovered that any
representation and warranty is inaccurate and such inaccuracy materially and
adversely affects the value of a Timeshare Loan or the interests of the Issuer
or any subsequent assignee thereof, then notwithstanding such lack of Knowledge
of the accuracy of such representation and warranty at the time such
representation or warranty was made (without regard to any Knowledge
qualifiers), such inaccuracy shall be deemed a breach of such representation or
warranty for purposes of the repurchase or substitution obligations described in
Sections 6(a)(i) or (ii) hereof.

                              Repurchases
and Substitutions.

                              Mandatory
Repurchases and Substitutions for Breaches of Representations and Warranties.
Upon the receipt of notice by the Depositor of a breach of any of the
representations and warranties in Section 5 hereof (on the date on which such
representation or warranty was made) which materially and adversely affects the
value of a Timeshare Loan or a Closing Date Eligible Investment or the
interests of the Issuer or any subsequent assignee of the Issuer (including the
Indenture Trustee on behalf of the Noteholders) therein, the Depositor shall,
within 60 days of receipt of such notice, cure in all material respects the
circumstance or condition which has caused such representation or warranty to
be incorrect or either (i) repurchase the Issuer’s interest in such Defective
Timeshare Loan or such Closing Date Eligible Investment at the Repurchase
Price, or (ii) in the case of a Defective Timeshare Loan only, provide one or
more Qualified Substitute Timeshare Loans and pay the related Substitution
Shortfall Amounts, if any. It is understood and agreed that the Depositor shall
have the right and will enforce such right to require the Club Originator to
repurchase or substitute a Defective Timeshare Loan or a Closing 

12

Date Eligible Investment in the event of a breach of
any of the representations and warranties in Section 5 hereof which materially
and adversely affects the value of a Timeshare Loan or a Closing Date Eligible
Investment or the interests of the Issuer or any subsequent assignee of the
Issuer (including the Indenture Trustee on behalf of the Noteholders) in
accordance with the provisions of the Transfer Agreement and Bluegreen Purchase
Agreement, as applicable.

                              Optional
Purchases or Substitutions of Club Loans. The Issuer hereby acknowledges
that pursuant to the Transfer Agreement and the Bluegreen Purchase Agreement,
the Depositor has irrevocably granted to the Club Originator an option to
repurchase or substitute Original Club Loans it has thereunder and as described
in the following sentence. The Issuer acknowledges that with respect to any
Original Club Loans for which the related Obligor has elected to effect and the
Club Originator has agreed to effect an Upgrade, the Club Originator will (at
its option) either (i) pay the Repurchase Price for such Original Club Loan or
(ii) substitute one or more Qualified Substitute Timeshare Loans for such Original
Club Loan and pay the related Substitution Shortfall Amounts, if any; provided,
however, that the Club Originator’s option to substitute one or more
Qualified Substitute Timeshare Loans for an Original Club Loan is limited on
any date to (x) 20% of the Aggregate Closing Date Collateral Balance less (y)
the aggregate Loan Balances of all Original Club Loans previously substituted
by the Club Originator on prior Transfer Dates pursuant to this Agreement, the
Transfer Agreement or the Bluegreen Purchase Agreement. In addition, the Issuer
acknowledges that the Club Originator shall use its best efforts to exercise
its substitution option with respect to Original Club Loans prior to exercise
of its repurchase option. To the extent that the Club Originator shall elect to
substitute Qualified Substitute Timeshare Loans for an Original Club Loan, the
Club Originator shall use its best efforts to cause each such Qualified
Substitute Timeshare Loan to be, in the following order of priority, (i) the
Upgrade Club Loan related to such Original Club Loan and (ii) an Upgrade Club
Loan unrelated to such Original Club Loan. 

                              Optional
Purchases or Substitutions of Defaulted Timeshare Loans. The Issuer
acknowledges that pursuant to the Transfer Agreement and the Bluegreen Purchase
Agreement, the Depositor has irrevocably granted the Club Originator an option
to repurchase or substitute Defaulted Timeshare Loans it has thereunder and as
described in the following sentence. With respect to Defaulted Timeshare Loans
on any date, the Club Originator will have the option, but not the obligation,
to either (i) purchase such Defaulted Timeshare Loan at the Repurchase Price of
such Defaulted Timeshare Loan or (ii) substitute one or more Qualified Substitute
Timeshare Loans for such Defaulted Timeshare Loan and pay the related
Substitution Shortfall Amount, if any; provided, however, that
the Club Originator’s option to purchase a Defaulted Timeshare Loan or to
substitute one or more Qualified Substitute Timeshare Loans for a Defaulted
Timeshare Loan is limited on any date to the Optional Purchase Limit and the
Optional Substitution Limit, respectively. The Club Originator may irrevocably
waive its option to purchase or substitute a Defaulted Timeshare Loan by
delivering or causing to deliver to the Indenture Trustee a Waiver Letter in
the form of Exhibit A attached hereto.

                              Payment
of Repurchase Prices and Substitution Shortfall Amounts. The Issuer hereby
directs and the Depositor hereby agrees to remit or cause to be remitted all
amounts in respect of Repurchase Prices and Substitution Shortfall Amounts
payable during the related Due Period in immediately available funds to the
Indenture Trustee to be deposited in the 

13

Collection Account on the Business Day immediately
preceding the related Payment Date for such Due Period in accordance with the
provisions of the Indenture. In the event that more than one Timeshare Loan is
replaced pursuant to Sections 6(a), (b) or (c) hereof on any Transfer Date, the
Substitution Shortfall Amounts and the Loan Balances of Qualified Substitute
Timeshare Loans shall be calculated on an aggregate basis for all substitutions
made on such Transfer Date. 

                              Schedule
of Timeshare Loans. The Issuer hereby directs and the Depositor hereby
agrees, on each date on which a Timeshare Loan has been repurchased, purchased
or substituted, to provide or cause to be provided to the Issuer and the
Indenture Trustee with a electronic supplement to Schedule III hereto
and the Schedule of Timeshare Loans reflecting the removal and/or substitution
of Timeshare Loans and subjecting any Qualified Substitute Timeshare Loans to
the provisions of this Agreement.

                              Qualified
Substitute Timeshare Loans. Pursuant to Section 6(g) hereof, on the related
Transfer Date, the Issuer hereby directs and the Depositor hereby agrees to
deliver or to cause the delivery of the Timeshare Loan Files relating to the
Qualified Substitute Timeshare Loans to the Indenture Trustee or to the
Custodian, at the direction of the Indenture Trustee, in accordance with the
provisions of the Indenture and the Custodial Agreement. As of such related
Transfer Date, the Depositor does hereby transfer, assign, sell and grant to
the Issuer, without recourse (except as provided in Section 6 and Section 8
hereof), any and all of the Depositor’s right, title and interest in and to (i)
each Qualified Substitute Timeshare Loan conveyed to the Issuer on
such Transfer Date, (ii) the Receivables in respect of the Qualified Substitute
Timeshare Loans due after the related Cut-Off Date, (iii) the related Timeshare
Loan Documents (excluding any rights as developer or declarant under the
Timeshare Declaration, the Timeshare Program Consumer Documents or the
Timeshare Program Governing Documents), (iv) all Related Security in respect of
such Qualified Substitute Timeshare Loans, (v) the Depositor’s rights and
remedies under the Bluegreen Purchase Agreement, the Transfer Agreement and
this Agreement, as the case may be, with respect to such Qualified Substitute
Timeshare Loan, and (vi) all income, payments, proceeds and other benefits and
rights related to any of the foregoing. Upon such sale, the ownership of each
Qualified Substitute Timeshare Loan and all collections allocable to principal
and interest thereon after the related Cut-Off Date and all other property
interests or rights conveyed pursuant to and referenced in this Section 6(f)
shall immediately vest in the Issuer, its successors and assigns. The Depositor
shall not take any action inconsistent with such ownership nor claim any
ownership interest in any Qualified Substitute Timeshare Loan for any purpose
whatsoever other than consolidated federal and state income tax reporting. The
Depositor agrees that such Qualified Substitute Timeshare Loans shall be
subject to the provisions of this Agreement and shall thereafter be deemed a
“Timeshare Loan” for the purposes of this Agreement.

                              Officer’s
Certificate for Qualified Substitute Timeshare Loans. The Depositor shall,
on each related Transfer Date, certify or cause to be certified in writing to
the Issuer and the Indenture Trustee that each new Timeshare Loan meets all the
criteria of the definition of “Qualified Substitute Timeshare Loan” and that
(i) the Timeshare Loan Files for such Qualified Substitute Timeshare Loans have
been delivered to the Custodian or shall be delivered within five Business
Days, and (ii) the Timeshare Loan Servicing Files for such Qualified Substitute
Timeshare Loans have been delivered to the Servicer.

14

                              Subsequent
Transfer Notices. The Depositor shall, on each related Transfer Date,
deliver a Subsequent Transfer Notice in the form attached as Exhibit J
to the Indenture, as specified by Section 4.2 of the Indenture.

                              Release.
In connection with any repurchase, purchase or substitution of one or more
Timeshare Loans contemplated by this Section 6, upon satisfaction of the
conditions contained in this Section 6, the Issuer and the Indenture Trustee
shall execute and deliver or shall cause the execution and delivery of such
releases and instruments of transfer or assignment presented to it by the Depositor,
in each case, without recourse, as shall be necessary to vest in the Depositor
or its designee the legal and beneficial ownership of such Timeshare Loans; provided,
however, that with respect to any release of a Timeshare Loan that is
substituted by a Qualified Substitute Timeshare Loan, the Issuer and the
Indenture Trustee shall not execute and deliver or cause the execution and
delivery of such releases and instruments of transfer or assignment until the
Indenture Trustee and the Servicer receive a Custodian’s Certification for such
Qualified Substitute Timeshare Loan. The Issuer and the Indenture Trustee shall
cause the Custodian to release the related Timeshare Loan Files to the
Depositor or its designee and the Servicer to release the related Timeshare
Loan Servicing Files to the Depositor or its designee; provided, however,
that with respect to any Timeshare Loan File or Timeshare Loan Servicing File
related to a Timeshare Loan that has been substituted by a Qualified Substitute
Timeshare Loan, the Issuer and the Indenture Trustee shall not cause the
Custodian and the Servicer to release the related Timeshare Loan File and the
Timeshare Loan Servicing File, respectively, until the Indenture Trustee and
the Servicer receive a Custodian’s Certification for such Qualified Substitute
Timeshare Loan.

                              Sole
Remedy. It is understood and agreed that the obligations of the Depositor
contained in Section 6(a) hereof to cure a breach, or to repurchase or
substitute Defective Timeshare Loans or to repurchase Closing Date Eligible
Investments and the obligation of the Depositor to indemnify pursuant to
Section 8 hereof, shall constitute the sole remedies available to the Issuer
or its subsequent assignees for the breaches of any representation or warranty
contained in Section 5 hereof and such remedies are not intended to and do not
constitute “credit recourse” to the Depositor.

                              Additional
Covenants of the Depositor. The Depositor hereby covenants and agrees with
the Issuer as follows:

                              It
shall comply with all laws, rules, regulations and orders applicable to it and
its business and properties except where the failure to comply will not have a
material adverse effect on its business or its ability to perform its
obligations under this Agreement or any other Transaction Document to which it
is a party or under the transactions contemplated hereunder or thereunder or
the validity or enforceability of the Timeshare Loans or the Closing Date
Eligible Investments.

                              It
shall preserve and maintain its existence (corporate or otherwise), rights,
franchises and privileges in the jurisdiction of its organization and except
where the failure to so preserve and maintain will not have a material adverse
effect on its business or its ability to perform its obligations under this
Agreement or any other Transaction Document to which it is a 

15

party or under the transactions contemplated hereunder
or thereunder or the validity or enforceability of the Timeshare Loans or the
Closing Date Eligible Investments.

                              On
the Closing Date and each Transfer Date, as applicable, it shall indicate in
its and its Affiliates’ computer files and other records that each Timeshare
Loan and each Closing Date Eligible Investment has been sold to the Issuer.

                              It
shall respond to any inquiries with respect to ownership of a Timeshare Loan or
Closing Date Eligible Investment by stating that such Timeshare Loan or Closing
Date Eligible Investment has been sold to the Issuer and that the Issuer is the
owner of such Timeshare Loan or Closing Date Eligible Investment.

                              On
or prior to the Closing Date, it shall file or cause to be filed, at its own
expense, financing statements in favor of the Issuer, and, if applicable, the
Indenture Trustee on behalf of the Noteholders, with respect to the Timeshare
Loans and the Closing Date Eligible Investments, in the form and manner
reasonably requested by the Issuer or its assigns. The Depositor shall deliver
file-stamped copies of such financing statements to the Issuer and the
Indenture Trustee on behalf of the Noteholders.

                              It
agrees from time to time, at its expense, to promptly execute and deliver all
further instruments and documents, and to take all further actions, that may be
necessary, or that the Issuer or the Indenture Trustee may reasonably request,
to perfect, protect or more fully evidence the sale of the Timeshare Loans and
the Closing Date Eligible Investments to the Issuer, or to enable the Issuer or
the Indenture Trustee to exercise and enforce its rights and remedies hereunder
or under any Timeshare Loan or Closing Date Eligible Investment including, but
not limited to, powers of attorney, UCC financing statements and assignments of
mortgage. It hereby appoints the Issuer and the Indenture Trustee as
attorneys-in-fact, which appointment is coupled with an interest and is therefore
irrevocable, to act on behalf and in the name of the Depositor under this
Section 7(f).

                              Any
change in the legal name of the Depositor and any use by it of any tradename,
fictitious name, assumed name or “doing business as” name occurring after the
Closing Date shall be promptly (but no later than ten Business Days) disclosed
to the Issuer and the Indenture Trustee in writing.

                              Upon
the discovery or receipt of notice by a Responsible Officer of the Depositor of
a breach of any of its representations or warranties and covenants contained
herein, the Depositor shall promptly disclose to the Issuer and the Indenture
Trustee, in reasonable detail, the nature of such breach.

                              Except
to the extent of any payments received with respect to a Credit Card Timeshare
Loan, in the event that the Depositor shall receive any payments in respect of
a Timeshare Loan after the Closing Date or Transfer Date, as applicable, the
Depositor shall, within two Business Days of receipt, transfer or cause to be
transferred, such payments to the Lockbox Account. Payments received by the
Depositor with respect to Credit Card Timeshare Loans, 

16

without regard to any discount fees, shall be transferred
to the Lockbox Account within five Business Days.

                              In
the event that the Depositor or the Issuer or any assignee of the Issuer
receives actual notice of any transfer taxes arising out of the transfer,
assignment and conveyance of a Timeshare Loan to the Issuer, on written demand
by the Issuer, or upon the Depositor otherwise being given notice thereof, the
Depositor shall pay, and otherwise indemnify and hold the Issuer, or any
subsequent assignee harmless, on an after-tax basis, from and against any and
all such transfer taxes.

                              The
Depositor will keep its principal place of business and chief executive office
and the office where it keeps its records concerning the Timeshare Loans at the
address of the Depositor listed herein and shall notify the parties hereto of
any change to the same at least 30 days prior thereto.

                              The
Depositor authorizes the Issuer and the Indenture Trustee to file continuation
statements, and amendments thereto, relating to the Timeshare Loans and the
Closing Date Eligible Investments and all payments made with regard to the
related Timeshare Loans and Closing Date Eligible Investments without the
signature of the Depositor where permitted by law. A photocopy or other
reproduction of this Agreement shall be sufficient as a financing statement
where permitted by law. The Issuer confirms that it is not its present
intention to file a photocopy or other reproduction of this Agreement as a
financing statement, but reserves the right to do so if, in its good faith
determination, there is at such time no reasonable alternative remaining to it.

                              Indemnification.

                              The
Depositor agrees to indemnify the Issuer, the Indenture Trustee, the
Noteholders and the Initial Purchaser (collectively, the “Indemnified Parties”)against
any and all claims, losses, liabilities, (including reasonable legal fees and
related costs) that the Issuer, the Indenture Trustee, the Noteholders or the
Initial Purchaser may sustain directly related to any breach of the
representations and warranties of the Depositor under Section 5 hereof (the “Indemnified
Amounts”) excluding, however (i) Indemnified Amounts to
the extent resulting from the gross negligence or willful misconduct on the
part of such Indemnified Party; (ii) any recourse for any uncollectible
Timeshare Loan not related to a breach of representation or warranty; (iii)
recourse to the Depositor for a Defective Timeshare Loan so long as the same is
cured, substituted or repurchased pursuant to Section 6 hereof, (iv) income,
franchise or similar taxes by such Indemnified Party arising out of or as a
result of this Agreement or the transfer of the Timeshare Loans and the Closing
Date Eligible Investments; (v) Indemnified Amounts attributable to any
violation by an Indemnified Party of any Requirement of Law related to an
Indemnified Party; or (vi) the operation or administration of the Indemnified
Party generally and not related to the enforcement of this Agreement. The
Depositor shall (A) promptly notify the Issuer and the Indenture Trustee if a
claim is made by a third party with respect to this Agreement or the Timeshare
Loans, and relating to (i) the failure by the Depositor to perform its duties
in accordance with the terms of this Agreement or (ii) a breach of the
Depositor’s representations, covenants and warranties contained in this
Agreement, (B) assume (with the consent of the Issuer, 

17

the Indenture Trustee, the Noteholders or the Initial
Purchaser, as applicable, which consent shall not be unreasonably withheld) the
defense of any such claim and (C) pay all expenses in connection therewith,
including reasonable legal counsel fees and promptly pay, discharge and satisfy
any judgment, order or decree which may be entered against it or the Issuer,
the Indenture Trustee, the Noteholders or the Initial Purchaser in respect of
such claim. If the Depositor shall have made any indemnity payment pursuant to
this Section 8 and the recipient thereafter collects from another Person any
amount relating to the matters covered by the foregoing indemnity, the
recipient shall promptly repay such amount to the Depositor.

                              The
obligations of the Depositor under this Section 8 to indemnify the Issuer, the
Indenture Trustee, the Noteholders and the Initial Purchaser shall survive the
termination of this Agreement and continue until the Notes are paid in full or
otherwise released or discharged.

                              No
Proceedings. The Depositor hereby agrees that it will not, directly or
indirectly, institute, or cause to be instituted, or join any Person in
instituting, against the Issuer or any Association, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings under any federal or state bankruptcy or similar law so long as
there shall not have elapsed one year plus one day since the latest maturing
Notes issued by the Issuer.

                              Notices,
Etc. All notices and other communications provided for hereunder shall,
unless otherwise stated herein, be in writing and mailed or telecommunicated,
or delivered as to each party hereto, at its address set forth below or at such
other address as shall be designated by such party in a written notice to the
other parties hereto. All such notices and communications shall not be
effective until received by the party to whom such notice or communication is
addressed.

	
 

	
 

	
 

	
Depositor

	
 

	
 

	
 

	
BRFC 2008-A LLC

	
 

	
4950 Communication Avenue,
  Suite 900

	
 

	
Boca Raton, Florida 33431

	
 

	
Attention: Allan J. Herz, President & Assistant
  Treasurer

	
 

	
Fax: (561) 443-8743

	
 

	
 

	
 

	
Issuer

	
 

	
 

	
 

	
BXG Receivables Note Trust 2008-A

	
 

	
c/o Wilmington Trust Company

	
 

	
Rodney Square North

	
 

	
1100 North Market Street

	
 

	
Wilmington, Delaware 19890-0001

	
 

	
Attention: Corporate Trust Administration

	
 

	
Fax: (302) 636-4140

18

                              No
Waiver; Remedies. No failure on the part of the Depositor, the Issuer or
any assignee thereof to exercise, and no delay in exercising, any right
hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any right hereunder preclude any other or further exercise thereof
or the exercise of any other right. The remedies herein provided are cumulative
and not exclusive of any other remedies provided by law.

                              Binding
Effect; Assignability. This Agreement shall be binding upon and inure to
the benefit of the Depositor, the Issuer and their respective successors and
assigns. Any assignee of the Issuer shall be an express third party beneficiary
of this Agreement, entitled to directly enforce this Agreement. The Depositor
may not assign any of its rights and obligations hereunder or any interest
herein without the prior written consent of the Issuer and any assignee
thereof. The Issuer may, and intends to, assign all of its rights hereunder to
the Indenture Trustee on behalf of the Noteholders and the Depositor consents
to any such assignment. This Agreement shall create and constitute the
continuing obligations of the parties hereto in accordance with its terms, and
shall remain in full force and effect until its termination; provided, however,
that the rights and remedies with respect to any breach of any representation
and warranty made by the Depositor pursuant to Section 5 hereof and the
repurchase or substitution and indemnification obligations shall be continuing
and shall survive any termination of this Agreement but such rights and
remedies may be enforced only by the Issuer and the Indenture Trustee.

                              Amendments;
Consents and Waivers. No modification, amendment or waiver of, or with
respect to, any provision of this Agreement, and all other agreements,
instruments and documents delivered thereto, nor consent to any departure by
the Depositor from any of the terms or conditions thereof shall be effective
unless it shall be in writing and signed by each of the parties hereto, the
written consent of the Indenture Trustee on behalf of the Noteholders is given
and confirmation from the Rating Agency that such action will not result in a
downgrade, withdrawal or qualification of any rating assigned to a Class of
Notes is received. The Issuer shall provide the Indenture Trustee and the
Rating Agency with such proposed modifications, amendments or waivers. Any
waiver or consent shall be effective only in the specific instance and for the
purpose for which given. No consent to or demand by the Depositor in any case
shall, in itself, entitle it to any other consent or further notice or demand
in similar or other circumstances. The Depositor acknowledges that in
connection with the intended assignment by the Issuer of all of its right,
title and interest in and to each Timeshare Loan and Closing Date Eligible
Investment to the Indenture Trustee on behalf of the Noteholders, the Issuer
intends to issue the Notes, the proceeds of which will be used by the Issuer to
purchase the Timeshare Loans and Closing Date Eligible Investments hereunder.
Notwithstanding anything to the contrary in this Section 13, no amendment shall
cause the Issuer to fail to be treated as a “qualified special purpose entity”
as defined in Statement of Financial Accounting Standards No. 140 (or any
successor Statement of Financial Accounting Standard).

                              Severability.
In case any provision in or obligation under this Agreement shall be invalid,
illegal or unenforceable in any jurisdiction, the validity, legality and enforceability
of the remaining provisions or obligations, or of such provision or obligation,
shall not in any way be affected or impaired thereby in any other jurisdiction.
Without limiting the generality of the foregoing, in the event that a
Governmental Authority determines that the Issuer may not purchase or acquire
the Timeshare Loans or the Closing Date Eligible Investments, the 

19

transactions evidenced hereby shall constitute a loan
and not a purchase and sale, notwithstanding the otherwise applicable intent of
the parties hereto, and the Depositor shall be deemed to have granted to the
Issuer as of the date hereof, a first priority perfected security interest in
all of the Depositor’s right, title and interest in, to and under such
Timeshare Loans and the Closing Date Eligible Investments and the related
property as described in Section 2 hereof.

                              GOVERNING
LAW; CONSENT TO JURISDICTION.

	
 

	
 

	
 

	
                    (A)          THIS
  AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
  THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAW
  OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE
  STATE OF NEW YORK.

	
 

	
 

	
 

	
                    (B)          THE PARTIES TO THIS AGREEMENT HEREBY SUBMIT TO
  THE NON-EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE
  UNITED STATES DISTRICT COURT LOCATED IN THE BOROUGH OF MANHATTAN IN NEW YORK
  CITY AND EACH PARTY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS UPON IT
  AND CONSENTS THAT ALL SUCH SERVICE OF PROCESS BE MADE BY REGISTERED MAIL
  DIRECTED TO ITS ADDRESS SET FORTH IN SECTION 10 HEREOF AND SERVICE SO MADE
  SHALL BE DEEMED TO BE COMPLETED FIVE DAYS AFTER THE SAME SHALL HAVE BEEN
  DEPOSITED IN THE U.S. MAILS, POSTAGE PREPAID. THE PARTIES HERETO EACH WAIVES
  ANY OBJECTION BASED ON FORUM NON CONVENIENS, AND ANY OBJECTION TO
  VENUE OF ANY ACTION INSTITUTED HEREUNDER AND CONSENTS TO THE GRANTING OF SUCH
  LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY THE COURT. NOTHING IN
  THIS SECTION 15 SHALL AFFECT THE RIGHT OF THE PARTIES TO THIS AGREEMENT TO
  SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR AFFECT THE RIGHT
  OF ANY OF THEM TO BRING ANY ACTION OR PROCEEDING IN THE COURTS OF ANY OTHER
  JURISDICTION.

                              WAIVERS
OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT
MAY HAVE TO TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING DIRECTLY
OR INDIRECTLY TO THIS AGREEMENT OR ANY OTHER DOCUMENT OR INSTRUMENT RELATED
HERETO AND FOR ANY COUNTERCLAIM THEREIN.

                              Heading.
The headings herein are for purposes of reference only and shall not otherwise
affect the meaning or interpretation of any provision hereof.

                              Execution
in Counterparts. This Agreement may be executed by the parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and both of which when taken together shall constitute one and the
same agreement.

20

                    IN
WITNESS WHEREOF, the parties have caused this Agreement to be executed by their
respective officers thereunto duly authorized, as of the date first above
written.

	
 

	
 

	
 

	
 

	
BRFC 2008-A LLC

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	

	
 

	
 

	
Name: Allan J. Herz

	
 

	
 

	
Title: President and Assistant Treasurer

	
 

	
 

	
 

	
 

	
BXG RECEIVABLES NOTE TRUST 2008-A

	
 

	
By:

	
Wilmington Trust Company, 

  as Owner Trustee

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

Agreed and acknowledged as to 

the last paragraph of Section 3 

herein only:

BLUEGREEN VACATION CLUB TRUST

By: Vacation Trust, Inc., Individually and as Club
Trustee

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

[Signature Page to
the Sale Agreement]

21

Schedule I

          Representations
and Warranties of the Depositor Regarding the Timeshare Loans

With respect to each Timeshare Loan, as of the Closing
Date or the related Transfer Date, as applicable:

	
 

	
 

	
 

	
 

	
(a)

	
other than certain 50/50 Loans, payments due under
  the Timeshare Loan are fully-amortizing and payable in level monthly
  installments;

	
 

	
 

	
 

	
 

	
(b)

	
the payment obligations under the Timeshare Loan
  bear a fixed rate of interest;

	
 

	
 

	
 

	
 

	
(c)

	
the Obligor thereunder has made a down payment by
  cash, check or credit card of at least 10% of the actual purchase price
  (including closing costs) of the Timeshare Property (which cash down payment
  may, (i) in the case of Upgrade Club Loans, be represented in whole or in
  part by the down payment made and principal payments paid in respect of the
  related Original Club Loan and (ii) in the case of a Sampler Converted Loan,
  be represented in whole or in part by the principal payments and down payment
  made on the related Sampler Loan since its date of origination) and no part
  of such payment has been made or loaned to the Obligor by Bluegreen, the
  Seller or an Affiliate thereof;

	
 

	
 

	
 

	
 

	
(d)

	
as of the related Cut-Off Date, no principal or
  interest due with respect to the Timeshare Loan is more than 60 days
  delinquent;

	
 

	
 

	
 

	
 

	
(e)

	
the Obligor is not an Affiliate of Bluegreen or any
  Subsidiary; provided, that solely for the purposes of this
  representation, a relative of an employee and employees of Bluegreen or any
  Subsidiary (or any of its Affiliates) shall not be deemed to be an
  “Affiliate”;

	
 

	
 

	
 

	
 

	
(f)

	
immediately prior to the conveyance of the Timeshare
  Loan to the Issuer, the Depositor will own full legal and equitable title to
  such Timeshare Loan, and the Timeshare Loan (and the related Timeshare
  Property) is free and clear of adverse claims, liens and encumbrances and is
  not subject to claims of rescission, invalidity, unenforceability,
  illegality, defense, offset, abatement, diminution, recoupment, counterclaim
  or participation or ownership interest in favor of any other Person;

	
 

	
 

	
 

	
 

	
(g)

	
the Timeshare Loan (other than an Aruba Club Loan)
  is secured directly by a first priority Mortgage on the related purchased
  Timeshare Property;

	
 

	
 

	
 

	
 

	
(h)

	
with respect to each Deeded Club Loan, the Timeshare
  Property mortgaged by or at the direction of the related Obligor constitutes
  a fractional fee simple timeshare interest in real property at the related
  Resort or an undivided interest in a Resort (or a phase thereof) associated
  with a Unit that entitles the holder of the interest to the use of a specific
  property for a specified number of days each year or every other year,
  subject to the rules of the Bluegreen Vacation Club; the related Mortgage has
  been delivered for filing and recordation with all appropriate 

I-1

	
 

	
 

	
 

	
 

	
 

	
governmental authorities in all jurisdictions in
  which such Mortgage is required to be filed and recorded to create a valid,
  binding and enforceable first Lien on the related Timeshare Property and such
  Mortgage creates a valid, binding and enforceable first Lien on the related
  Timeshare Property, subject only to Permitted Liens; and the Depositor is in
  compliance with any Permitted Lien respecting the right to the use of such
  Timeshare Property; the Assignment of Mortgage and each related endorsement
  of the related Mortgage Note constitutes a duly executed, legal, valid, binding
  and enforceable assignment or endorsement, as the case may be, of such
  related Mortgage and related Mortgage Note, and all monies due or to become
  due thereunder, and all proceeds thereof;

	
 

	
 

	
 

	
 

	
(i)

	
with respect to the Obligor and a particular Timeshare
  Property purchased by such Obligor, there is only one original Mortgage and
  Mortgage Note, in the case of a Deeded Club Loan, and, only one Owner
  Beneficiary Agreement, in the case of an Aruba Club Loan; all parties to the
  related Mortgage and the related Mortgage Note (and, in the case of an Aruba
  Club Loan, Owner Beneficiary Agreement) had legal capacity to enter into such
  Timeshare Loan Documents and to execute and deliver such related Timeshare
  Loan Documents, and such related Timeshare Loan Documents have been duly and
  properly executed by such parties; any amendments to such related Timeshare
  Loan Documents required as a result of any mergers involving the Depositor or
  its predecessors, to maintain the rights of the Depositor or its predecessors
  thereunder as a mortgagee (or the Depositor, in the case of an Aruba Club
  Loan) have been completed;

	
 

	
 

	
 

	
 

	
(j)

	
at the time the related Originator originated such
  Timeshare Loan to the related Obligor, such Originator had full power and
  authority to originate such Timeshare Loan and the Obligor or the Club
  Trustee had good and indefeasible fee title or good and marketable fee simple
  title, or, in the case of an Aruba Club Loan, a cooperative interest, as
  applicable, to the Timeshare Property related to such Timeshare Loan, free
  and clear of all Liens, except for Permitted Liens;

	
 

	
 

	
 

	
 

	
(k)

	
the related Mortgage (or, in the case of an Aruba
  Club Loan, the related Owner Beneficiary Agreement) contains customary and
  enforceable provisions so as to render the rights and remedies of the holder
  thereof adequate for the realization against the related Timeshare Property
  of the benefits of the security interests or lender’s contractual rights
  intended to be provided thereby, including (a) if the Mortgage is a deed of
  trust, by trustee’s sale, including power of sale, (b) otherwise by judicial
  foreclosure or power of sale and/or (c) termination of the contract,
  retention of Obligor deposits and payments towards the related Timeshare Loan
  by the Originator or the lender, as the case may be, and expulsion from the
  Club; in the case of the Deeded Club Loans, there is no exemption available
  to the related Obligor which would interfere with the mortgagee’s right to
  sell at a trustee’s sale or power of sale or right to foreclose such related
  Mortgage, as applicable;

I-2

	
 

	
 

	
 

	
 

	
(l)

	
the related Mortgage Note is not and has not been
  secured by any collateral except the Lien of the related Mortgage;

	
 

	
 

	
 

	
 

	
(m)

	
if a Mortgage secures a Timeshare Loan, the title to
  the related Timeshare Property is insured (or a binding commitment, which may
  be a master commitment referencing one or more Mortgages, for title
  insurance, not subject to any conditions other than standard conditions
  applicable to all binding commitments, has been issued) under a mortgagee
  title insurance policy (which may consist of one master policy referencing
  one or more such Mortgages) issued by a title insurer qualified to do
  business in the jurisdiction where the related Timeshare Property is located
  in a form generally acceptable to prudent originators of similar mortgage
  loans, insuring the Depositor or its predecessor and its successors and
  assigns, as to the first priority mortgage Lien of the related Mortgage in an
  amount equal to the original outstanding Loan Balance of such Timeshare Loan,
  and otherwise in form and substance acceptable to the Indenture Trustee; the
  Club Originator and its assignees is a named insured of such mortgagee’s
  title insurance policy; such mortgagee’s title insurance policy is in full
  force and effect; no claims have been made under such mortgagee’s title
  insurance policy and no prior holder of such Timeshare Loan has done or
  omitted to do anything which would impair the coverage of such mortgagee’s
  title insurance policy; no premiums for such mortgagee’s title insurance
  policy, endorsements and all special endorsements are past due;

	
 

	
 

	
 

	
 

	
(n)

	
the Depositor has not taken (or omitted to take),
  and has no notice that the related Obligor has taken (or omitted to take),
  any action that would impair or invalidate the coverage provided by any
  hazard, title or other insurance policy on the related Timeshare Property;

	
 

	
 

	
 

	
 

	
(o)

	
all applicable intangible taxes and documentary
  stamp taxes were paid as to the related Timeshare Loan;

	
 

	
 

	
 

	
 

	
(p)

	
the proceeds of the Timeshare Loan have been fully
  disbursed, there is no obligation to make future advances or to lend
  additional funds under the Originator’s commitment or the documents and
  instruments evidencing or securing the Timeshare Loan and no such advances or
  loans have been made since the origination of the Timeshare Loan;

	
 

	
 

	
 

	
 

	
(q)

	
the terms of each Timeshare Loan Document have not
  been impaired, waived, altered or modified in any respect, except (x) by
  written instruments which are part of the related Timeshare Loan Documents or
  (y) in accordance with the Credit Policy, the Collection Policy or the
  Servicing Standard (provided that no Timeshare Loan has been impaired,
  waived, altered, or modified in any respect more than once). No other
  instrument has been executed or agreed to which would effect any such
  impairment, waiver, alteration or modification; the Obligor has not been
  released from liability on or with respect to the Timeshare Loan, in whole or
  in part; if required by law or prudent originators of similar loans in the
  jurisdiction 

I-3

	
 

	
 

	
 

	
 

	
 

	
where the related Timeshare Property is located, all
  waivers, alterations and modifications have been filed and/or recorded in all
  places necessary to perfect, maintain and continue a valid first priority
  Lien of the related Mortgage, subject only to Permitted Liens;

	
 

	
 

	
 

	
 

	
(r)

	
other than if it is an Aruba Club Loan, the
  Timeshare Loan is principally and directly secured by an interest in real
  property;

	
 

	
 

	
 

	
 

	
(s)

	
the Timeshare Loan was originated by one of the Depositor’s
  Affiliates in the normal course of its business; the Timeshare Loan
  originated by the Depositor’s Affiliates was underwritten in accordance with
  the Depositor’s Affiliates’ underwriting guidelines and the Credit Policy; to
  the Depositor’s Knowledge the origination, servicing and collection practices
  used by the Depositor’s Affiliates with respect to the Timeshare Loan have
  been in all respects, legal, proper, prudent and customary;

	
 

	
 

	
 

	
 

	
(t)

	
the related Timeshare Loan is assignable to and by
  the obligee and its successors and assigns and the related Timeshare Property
  is assignable upon liquidation of the related Timeshare Loan, without the
  consent of any other Person (including any Association, condominium
  association, homeowners’ or timeshare association);

	
 

	
 

	
 

	
 

	
(u)

	
the related Mortgage is and will be prior to any
  Lien on, or other interests relating to, the related Timeshare Property;

	
 

	
 

	
 

	
 

	
(v)

	
to the Depositor’s Knowledge, there are no
  delinquent or unpaid taxes, ground rents (if any), water charges, sewer rents
  or assessments outstanding with respect to any of the Timeshare Properties,
  nor any other outstanding Liens or charges affecting the Timeshare Properties
  that would result in the imposition of a Lien on the Timeshare Property
  affecting the Lien of the related Mortgage or otherwise materially affecting
  the interests of the Indenture Trustee on behalf of the Noteholders in the
  related Timeshare Loan;

	
 

	
 

	
 

	
 

	
(w)

	
other than with respect to delinquent payments of
  principal or interest 60 or fewer days past due as of the Cut-Off Date, there
  is no default, breach, violation or event of acceleration existing under the
  Mortgage, the related Mortgage Note or any other document or instrument
  evidencing, guaranteeing, insuring or otherwise securing the related
  Timeshare Loan, and no event which, with the lapse of time or with notice and
  the expiration of any grace or cure period, would constitute a material
  default, breach, violation or event of acceleration thereunder; and the
  Depositor has not waived any such material default, breach, violation or
  event of acceleration under the Owner Beneficiary Agreement, Mortgage, the
  Mortgage Note or any such other document or instrument, as applicable;

	
 

	
 

	
 

	
 

	
(x)

	
neither the Obligor nor any other Person has the right,
  by statute, contract or otherwise, to seek the partition of the Timeshare
  Property;

I-4

	
 

	
 

	
 

	
 

	
(y)

	
the Timeshare Loan has not been satisfied, canceled,
  rescinded or subordinated, in whole or in part; no portion of the Timeshare
  Property has been released from the Lien of the related Mortgage, in whole or
  in part; no instrument has been executed that would effect any such
  satisfaction, cancellation, rescission, subordination or release; the terms
  of the related Mortgage do not provide for a release of any portion of the
  Timeshare Property from the Lien of the related Mortgage except upon the
  payment of the Timeshare Loan in full;

	
 

	
 

	
 

	
 

	
(z)

	
the Depositor and any of its Affiliates and, to the
  Depositor’s Knowledge, each other party which has had an interest in the
  Timeshare Loan is (or, during the period in which such party held and
  disposed of such interest, was) in compliance with any and all applicable
  filing, licensing and “doing business” requirements of the laws of the state
  wherein the Timeshare Property is located to the extent necessary to permit
  the Depositor to maintain or defend actions or proceedings with respect to
  the Timeshare Loan in all appropriate forums in such state without any
  further act on the part of any such party;

	
 

	
 

	
 

	
 

	
(aa)

	
there is no current obligation on the part of any
  other person (including any buy down arrangement) to make payments on behalf
  of the Obligor in respect of the Timeshare Loan;

	
 

	
 

	
 

	
 

	
(bb)

	
the related Associations were duly organized and are
  validly existing; a manager (the “Manager”) manages such Resort and
  performs services for the Associations, pursuant to an agreement between the
  Manager and the respective Associations, such contract being in full force
  and effect; to the Depositor’s Knowledge the Manager and the Associations
  have performed in all material respects all obliga­tions under such agreement
  and are not in default under such agreement;

	
 

	
 

	
 

	
 

	
(cc)

	
in the case of the Bluegreen Owned Resorts (other
  than La Cabana Resort and Casa del Mar Resort) and to the Depositor’s
  Knowledge with respect to the Non-Bluegreen Owned Resorts, La Cabana Resort
  and Casa del Mar Resort, (i) the related Resort is insured in the event of
  fire, earthquake, or other casualty for the full replacement value thereof,
  and in the event that the Timeshare Property should suffer any loss covered
  by casualty or other insurance, upon receipt of any insurance proceeds, the
  Associations at the Resorts are required, during the time such Resort is
  covered by such insurance, under the applicable governing instruments either
  to repair or rebuild the portions of the Resort in which the Timeshare
  Property is located or to pay such proceeds to the holders of any related
  Mortgage secured by a Timeshare Property located at such Resort; (ii) the
  related Resort, if located in a designated flood plain, maintains flood
  insurance in an amount not less than the maximum level available (without
  regard to reasonable deductibles) under the National Flood Insurance Act of
  1968, as amended or any applicable laws; (iii) the related Resort has
  business interruption insurance and general liability insurance in such
  amounts generally acceptable in the industry; and (iv) the related Resort’s
  insurance policies are in full force and effect with a generally acceptable insurance
  carrier;

I-5

	
 

	
 

	
 

	
 

	
(dd)

	
the obligee of each related Mortgage, and its
  successors and assigns, has the right to receive and direct the application
  of insurance and condemnation proceeds received in respect of the related
  Timeshare Property, except where the related condominium declarations,
  timeshare declarations, the Club Trust Agreement or applicable state law
  provide that insurance and condemnation proceeds be applied to restoration or
  replacement of the improvements or acquisition of similar improvements, as
  the case may be;

	
 

	
 

	
 

	
 

	
(ee)

	
each rescission period applicable to the related
  Timeshare Loan has expired;

	
 

	
 

	
 

	
 

	
(ff)

	
no selection procedures were intentionally utilized
  by the Depositor in selecting the Timeshare Loan which the Depositor knew
  were materially adverse to the Indenture Trustee or the Noteholders;

	
 

	
 

	
 

	
 

	
(gg)

	
except as set forth on Schedule II hereto, the Units
  related to the Timeshare Loan in the related Resort have been completed in
  all material respects as required by applicable state and local laws, free of
  all defects that could give rise to any claims by the related Obligors under
  home warranties or applicable laws or regulations, whether or not such claims
  would create valid offset rights under the law of the State in which the
  Resort is located; to the extent required by applicable law, valid
  certificates of occupancy for such Units have been issued and are currently
  outstanding; the Depositor or any of its Affiliates have complied in all
  material respects with all obligations and duties incumbent upon the
  developers under the related timeshare declaration (each a “Declaration”),
  as applicable, or similar applicable documents for the related Resort; no
  practice, procedure or policy employed by the related Association in the conduct
  of its business violates any law, regulation, judgment or agreement,
  including, without limitation, those relating to zoning, building, use and
  occupancy, fire, health, sanitation, air pollution, ecological, environmental
  and toxic wastes, applicable to such Association which, if enforced, would
  reasonably be expected to (a) have a material adverse impact on such
  Association or the ability of such Association to do business, (b) have a
  material adverse impact on the financial condition of such Association, or
  (c) constitute grounds for the revocation of any license, charter, permit or
  registration which is material to the conduct of the business of such
  Association; the related Resort and the present use thereof does not violate
  any applicable environmental, zoning or building laws, ordinances, rules or
  regulations of any governmental authority, or any covenants or restrictions
  of record, so as to materially adversely affect the value or use of such
  Resort or the performance by the related Association of its obligations
  pursuant to and as contemplated by the terms and provisions of the related
  Declaration; there is no condition presently existing, and to the Depositor’s
  Knowledge, no event has occurred or failed to occur prior to the date hereof,
  concerning the related Resort relating to any hazardous or toxic materials or
  condition, asbestos or other environmental or similar matters which would
  reasonably be expected to materially and adversely affect the present use of
  such Resort or the financial condition or business operations of the related
  Association, or the value of the Notes;

I-6

	
 

	
 

	
 

	
 

	
(hh)

	
except if such Timeshare Loan is listed on Schedule
  II hereto, the original Loan Balance of such Timeshare Loan does not exceed
  $35,000;

	
 

	
 

	
 

	
 

	
(ii)

	
payments with respect to the Timeshare Loan are to
  be in legal tender of the United States;

	
 

	
 

	
 

	
 

	
(jj)

	
all monthly payments (as applicable) made on the
  Timeshare Loan have been made by the Obligor and not by the Depositor or any
  Affiliate of the Depositor on the Obligor’s behalf;

	
 

	
 

	
 

	
 

	
(kk)

	
the Timeshare Loan relates to a Resort;

	
 

	
 

	
 

	
 

	
(ll)

	
the Timeshare Loan constitutes either “chattel
  paper”, a “general intangible” or an “instrument”
  as defined in the UCC as in effect in all applicable
  jurisdictions;

	
 

	
 

	
 

	
 

	
(mm)

	
the sale, transfer and assignment of the Timeshare
  Loan and the Related Security does not contravene or conflict with any law,
  rule or regulation or any contractual or other restriction, limitation or
  encumbrance, and the sale, transfer and assignment of the Timeshare Loan and
  Related Security does not require the consent of the Obligor;

	
 

	
 

	
 

	
 

	
(nn)

	
each of the Timeshare Loan, the Related Security,
  related Assignment of Mortgage, related Mortgage, related Mortgage Note,
  related Owner Beneficiary Agreement (each as applicable) and each other
  related Timeshare Loan Document are in full force and effect, constitute the
  legal, valid and binding obligation of the Obligor thereof enforceable
  against such Obligor in accordance with its terms subject to the effect of bankruptcy,
  fraudulent conveyance or transfer, insolvency, reorganization, assignment,
  liquidation, conservatorship or moratorium, and is not subject to any
  dispute, offset, counterclaim or defense whatsoever;

	
 

	
 

	
 

	
 

	
(oo)

	
the Timeshare Loan relates to a Completed Unit; the
  Timeshare Loan and the Related Security do not, and the origination of each
  Timeshare Loan did not, contravene in any material respect any laws, rules or
  regulations applicable thereto (including, without limitation, laws, rules
  and regulations relating to usury, retail installment sales, truth in
  lending, fair credit reporting, equal credit opportunity, fair debt
  collection practices and privacy) and with respect to which no party thereto
  has been or is in violation of any such law, rule or regulation in any
  material respect if such violation would impair the collectibility of such
  Timeshare Loan and the Related Security; no Timeshare Loan was originated in,
  or is subject to the laws of, any jurisdiction under which the sale,
  transfer, conveyance or assignment of such Timeshare Loan would be unlawful,
  void or voidable;

	
 

	
 

	
 

	
 

	
(pp)

	
to the Depositor’s Knowledge, (i) no bankruptcy is
  currently existing with respect to the Obligor, (ii) the Obligor is not
  insolvent and (iii) the Obligor is not an Affiliate of the Depositor;

I-7

	
 

	
 

	
 

	
 

	
(qq)

	
except if such Timeshare Loan is listed on Schedule
  II hereto, the Timeshare Loan shall not have a Timeshare Loan Rate less than
  6% per annum;

	
 

	
 

	
 

	
 

	
(rr)

	
except in the case of certain 50/50 Loans or an
  Upgrade Club Loan, the Obligor has made at least one required payment with
  respect to the Timeshare Loan (not including any down payment); 

	
 

	
 

	
 

	
 

	
(ss)

	
if a Resort (other than La Cabana Resort) is subject
  to a construction loan, the construction lender shall have signed and
  delivered a non-disturbance agreement (which may be contained in such
  lender’s mortgage) pursuant to which such construction lender agrees not to
  foreclose on any Timeshare Properties relating to a Timeshare Loan or by the
  terms of the construction loan, such Timeshare Property has been released
  from the lien created thereby which have been sold pursuant to this
  Agreement; 

	
 

	
 

	
 

	
 

	
(tt)

	
except as set forth on Schedule II hereto, the
  Timeshare Properties and the related Resorts are free of material damage and
  waste and are in good repair, ordinary wear and tear excepted, and fully
  operational; there is no proceeding pending or threatened for the total or
  partial condemnation of or affecting any Timeshare Property or taking of the
  Timeshare Property by eminent domain; the Timeshare Properties and the
  Resorts in which the Timeshare Properties are located are lawfully used and
  occupied under applicable law by the owner thereof;

	
 

	
 

	
 

	
 

	
(uu)

	
except as set forth on Schedule II hereto, the
  portions of the Resorts in which the Timeshare Properties are located which
  represent the common facilities are free of material damage and waste and are
  in good repair and condition, ordinary wear and tear excepted;

	
 

	
 

	
 

	
 

	
(vv)

	
no foreclosure or similar proceedings have been instituted
  and are continuing with respect to any Timeshare Loan or the related
  Timeshare Property;

	
 

	
 

	
 

	
 

	
(ww)

	
with respect to the Aruba Club Loans only, Bluegreen
  shall own, directly or indirectly, 100% of the economic and voting interests
  of the Aruba Originator;

	
 

	
 

	
 

	
 

	
(xx)

	
the Timeshare Loan does not have an original term to
  maturity in excess of 120 months;

	
 

	
 

	
 

	
 

	
(yy)

	
to the Depositor’s Knowledge, the capital reserves
  and maintenance fee levels of the Associations related to the Resorts are
  adequate in light of the operating requirements of such Associations;

	
 

	
 

	
 

	
 

	
(zz)

	
except as required by law, the Timeshare Loan may
  not be assumed without the consent of the obligee;

	
 

	
 

	
 

	
 

	
(aaa)

	
for each Club Loan, the Obligor under the Timeshare
  Loan does not have its rights under the Club Trust Agreement suspended; 

I-8

	
 

	
 

	
 

	
 

	
(bbb)

	
the payments under the Timeshare Loan are not
  subject to withholding taxes imposed by any foreign governments;

	
 

	
 

	
 

	
 

	
(ccc)

	
each entry with respect to the Timeshare Loan as set
  forth on Schedule II and Schedule III hereof is true and
  correct. Each entry with respect to a Qualified Substitute Timeshare Loan as
  set forth on Schedule II and Schedule III hereof, as revised,
  is true and correct; 

	
 

	
 

	
 

	
 

	
(ddd)

	
if the Timeshare Loan is an Initial Timeshare Loan
  and relates to a Timeshare Property located in Aruba, a notice has been
  mailed or will be mailed within 30 days of the Closing Date to the related
  Obligor indicating that such Timeshare Loan has ultimately been transferred
  to the Issuer and pledged to the Indenture Trustee for the benefit of the
  Noteholders; 

	
 

	
 

	
 

	
 

	
(eee)

	
if the Timeshare Loan is a Subsequent Timeshare Loan
  and relates to a Timeshare Property located in Aruba, a notice will be mailed
  within 30 days of the related Transfer Date to the related Obligor indicating
  that such Timeshare Loan has ultimately been transferred to the Issuer and
  pledged to the Indenture Trustee for the benefit of the Noteholders;

	
 

	
 

	
 

	
 

	
(fff)

	
no broker is, or will be, entitled to any commission
  or compensation in connection with the transfer of the Timeshare Loans
  hereunder;

	
 

	
 

	
 

	
 

	
(ggg)

	
if the related Obligor is paying its scheduled
  payments by pre-authorized debit or charge, such Obligor has executed an ACH
  Form substantially in the form attached hereto as Exhibit C;

	
 

	
 

	
 

	
 

	
(hhh)

	
if such Timeshare Loan is a 50/50 Loan, the related
  Obligor has made a downpayment of at least 50%, the balance of the 50/50 Loan
  is due no later than the one year anniversary of the origination date of such
  50/50 Loan and the coupon rate is at least 8.25% per annum;

	
 

	
 

	
 

	
 

	
(iii)

	
the Timeshare Loan, if a Subsequent Timeshare Loan,
  when aggregated with all Timeshare Loans sold to the Issuer pursuant to this
  Agreement, satisfies the criteria for Subsequent Timeshare Loans specified in
  Section 4.3 of the Indenture;

	
 

	
 

	
 

	
 

	
(jjj)

	
if such Timeshare Loan relates to a Timeshare
  Property located in the State of Michigan and was originated prior to
  Bluegreen obtaining a license under the Michigan Mortgage Brokers, Lenders
  and Servicers Licensing Act, Bluegreen shall have confirmed that the interest
  rate on such Timeshare Loan is enforceable in the manner specified as
  effective in an opinion by Michigan local counsel;

	
 

	
 

	
 

	
 

	
(kkk)

	
all Aruba Club Loans were originated on or after
  January 26, 2004; and

	
 

	
 

	
 

	
 

	
(lll) if such Timeshare Loan relates to a Timeshare
  Property at a Future Resort, a local counsel opinion letter has been
  delivered that is addressed to the Issuer, the Indenture 

I-9

	
 

	
 

	
 

	
Trustee and the Initial Purchaser and is
  satisfactory to either Baker & McKenzie LLP or counsel acceptable to the
  Indenture Trustee.

I-10

Schedule II

Exceptions

With respect to (gg), (tt) and (uu):

Bluegreen has initiated litigation against a general
contractor alleging the existence of construction defects at both phases of the
Shore Crest Vacation VillasTM, including deficiencies in exterior insulating and
finishing systems that have resulted in water intrusion. Bluegreen estimates
that the total cost of repairs to correct the defects will range from $4 million
to $6 million. Whether the matter is settled by litigation or by negotiation,
it is possible that Bluegreen may need to participate financially in some way
to correct the construction deficiencies and will continue to incur legal and
other costs as the matter is pursued. As of December 31, 2007, Bluegreen has
accrued $1.3 million in expenses related to this matter.

With respect to (hh): 

See attached.

II-1

Schedule III

Schedule of
Initial Timeshare Loans

[Electronic
Schedule of Timeshare Loans on file with the Issuer]

III-1

Schedule IV

Schedule of
Eligible Investments

	
 

	
 

	
•

	
First American Prime Obligations Fund (Class D)

IV-1

Exhibit A

Waiver Letter

Exhibit A

Exhibit B

Club Trust
Agreement

Exhibit B

Exhibit C

ACH Form

Exhibit C

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