Document:

INTELLECTUAL PROPERTY SECURITY AGREEMENT

            INTELLECTUAL PROPERTY SECURITY AGREEMENT (this "Agreement" dated as
of July 31, 2006, by and among Sew Cal Logo, Inc., a Nevada corporation (the
"Company"), and the secured parties signatory hereto and their respective
endorsees, transferees and assigns (collectively, the "Secured Party").

                                   WITNESSETH:

   WHEREAS, pursuant to a Securities Purchase Agreement, dated the date
hereof, between Company and the Secured Party (the "Purchase Agreement"),
Company has agreed to issue to the Secured Party and the Secured Party has
agreed to purchase from Company certain of Company's 6% Callable Secured
Convertible Notes, due three years from the date of issue (the "Notes"), which
are convertible into shares of Company's Common Stock, par value $.001 per share
(the "Common Stock"). In connection therewith, Company shall issue the Secured
Party certain Common Stock purchase warrants (the "Warrants"); and

   WHEREAS, in order to induce the Secured Party to purchase the Notes,
Company has agreed to execute and deliver to the Secured Party this Agreement
for the benefit of the Secured Party and to grant to it a first priority
security interest in certain Intellectual Property (defined below) of Company to
secure the prompt payment, performance and discharge in full of all of Company's
obligations under the Notes and exercise and discharge in full of Company's
obligations under the Warrants; and

   NOW, THEREFORE, in consideration of the agreements herein contained and
for other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the parties hereto hereby agree as follows:

      1. Defined Terms. Unless otherwise defined herein, terms which are defined
in the Purchase Agreement and used herein are so used as so defined; and the
following terms shall have the following meanings:

            "Software Intellectual Property" shall mean:

            (a) all software programs (including all source code, object code
and all related applications and data files), whether now owned, upgraded,
enhanced, licensed or leased or hereafter acquired by the Company, above;

            (b) all computers and electronic data processing hardware and
firmware associated therewith;

            (c) all documentation (including flow charts, logic diagrams,
manuals, guides and specifications) with respect to such software, hardware and
firmware described in the preceding clauses (a) and (b); and

            (d) all rights with respect to all of the foregoing, including,
without limitation, any and all upgrades, modifications, copyrights, licenses,
options, warranties, service contracts, program services, test rights,
maintenance rights, support rights, improvement rights, renewal rights and
indemnifications and substitutions, replacements, additions, or model
conversions of any of the foregoing.

<PAGE>

            "Copyrights" shall mean (a) all copyrights, registrations and
applications for registration, issued or filed, including any reissues,
extensions or renewals thereof, by or with the United States Copyright Office or
any similar office or agency of the United States, any state thereof, or any
other country or political subdivision thereof, or otherwise, including, all
rights in and to the material constituting the subject matter thereof,
including, without limitation, any referred to in Schedule B hereto, and (b) any
rights in any material which is copyrightable or which is protected by common
law, United States copyright laws or similar laws or any law of any State,
including, without limitation, any thereof referred to in Schedule B hereto.

            "Copyright License" shall mean any agreement, written or oral,
providing for a grant by the Company of any right in any Copyright, including,
without limitation, any thereof referred to in Schedule B hereto.

            "Intellectual Property" shall means, collectively, the Software
Intellectual Property, Copyrights, Copyright Licenses, Patents, Patent Licenses,
Trademarks, Trademark Licenses and Trade Secrets.

            "Obligations" means all of the Company's obligations under this
Agreement and the Notes, in each case, whether now or hereafter existing,
voluntary or involuntary, direct or indirect, absolute or contingent, liquidated
or unliquidated, whether or not jointly owed with others, and whether or not
from time to time decreased or extinguished and later decreased, created or
incurred, and all or any portion of such obligations or liabilities that are
paid, to the extent all or any part of such payment is avoided or recovered
directly or indirectly from the Secured Party as a preference, fraudulent
transfer or otherwise as such obligations may be amended, supplemented,
converted, extended or modified from time to time.

            "Patents" shall mean (a) all letters patent of the United States or
any other country or any political subdivision thereof, and all reissues and
extensions thereof, including, without limitation, any thereof referred to in
Schedule B hereto, and (b) all applications for letters patent of the United
States and all divisions, continuations and continuations-in-part thereof or any
other country or any political subdivision, including, without limitation, any
thereof referred to in Schedule B hereto.

            "Patent License" shall mean all agreements, whether written or oral,
providing for the grant by the Company of any right to manufacture, use or sell
any invention covered by a Patent, including, without limitation, any thereof
referred to in Schedule B hereto.

            "Security Agreement" shall mean the a Security Agreement, dated the
date hereof between Company and the Secured Party.

                                        2
<PAGE>

            "Trademarks" shall mean (a) all trademarks, trade names, corporate
names, company names, business names, fictitious business names, trade styles,
service marks, logos and other source or business identifiers, and the goodwill
associated therewith, now existing or hereafter adopted or acquired, all
registrations and recordings thereof, and all applications in connection
therewith, whether in the United States Patent and Trademark Office or in any
similar office or agency of the United States, any state thereof or any other
country or any political subdivision thereof, or otherwise, including, without
limitation, any thereof referred to in Schedule B hereto, and (b) all reissues,
extensions or renewals thereof.

            "Trademark License" shall mean any agreement, written or oral,
providing for the grant by the Company of any right to use any Trademark,
including, without limitation, any thereof referred to in Schedule B hereto.

            "Trade Secrets" shall mean common law and statutory trade secrets
and all other confidential or proprietary or useful information and all know-how
obtained by or used in or contemplated at any time for use in the business of
the Company (all of the foregoing being collectively called a "Trade Secret"),
whether or not such Trade Secret has been reduced to a writing or other tangible
form, including all documents and things embodying, incorporating or referring
in any way to such Trade Secret, all Trade Secret licenses, including each Trade
Secret license referred to in Schedule B hereto, and including the right to sue
for and to enjoin and to collect damages for the actual or threatened
misappropriation of any Trade Secret and for the breach or enforcement of any
such Trade Secret license.

      2. Grant of Security Interest. In accordance with Section 3(m) of the
Security Agreement, to secure the complete and timely payment, performance and
discharge in full, as the case may be, of all of the Obligations, the Company
hereby, unconditionally and irrevocably, pledges, grants and hypothecates to the
Secured Party, a continuing security interest in, a continuing first lien upon,
an unqualified right to possession and disposition of and a right of set-off
against, in each case to the fullest extent permitted by law, all of the
Company's right, title and interest of whatsoever kind and nature in and to the
Intellectual Property (the "Security Interest").

      3. Representations and Warranties. The Company hereby represents and
warrants, and covenants and agrees with, the Secured Party as follows:

            (a) The Company has the requisite corporate power and authority to
enter into this Agreement and otherwise to carry out its obligations thereunder.
The execution, delivery and performance by the Company of this Agreement and the
filings contemplated therein have been duly authorized by all necessary action
on the part of the Company and no further action is required by the Company.
This Agreement constitutes a legal, valid and binding obligation of the Company
enforceable in accordance with its terms, except as enforceability may be
limited by bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the enforcement of creditor's rights generally.

                                        3
<PAGE>

            (b) The Company represents and warrants that it has no place of
business or offices where its respective books of account and records are kept
(other than temporarily at the offices of its attorneys or accountants) or
places where the Intellectual Property is stored or located, except as set forth
on Schedule A attached hereto;

            (c) The Company is the sole owner of the Intellectual Property
(except for non-exclusive licenses granted by the Company in the ordinary course
of business), free and clear of any liens, security interests, encumbrances,
rights or claims, and is fully authorized to grant the Security Interest in and
to pledge the Intellectual Property, except as set forth on Schedule D. There is
not on file in any governmental or regulatory authority, agency or recording
office an effective financing statement, security agreement, license or transfer
or any notice of any of the foregoing (other than those that have been filed in
favor of the Secured Party pursuant to this Agreement) covering or affecting any
of the Intellectual Property, except as set forth on Schedule D. So long as this
Agreement shall be in effect, the Company shall not execute and shall not
knowingly permit to be on file in any such office or agency any such financing
statement or other document or instrument (except to the extent filed or
recorded in favor of the Secured Party pursuant to the terms of this Agreement),
except as set forth on Schedule D or for a financing statement covering assets
acquired by the Company after the date hereof, provided that the value of the
Intellectual Property covered by this Agreement along with the Collateral (as
defined in the Security Agreement) is equal to at least 150% of the Obligations.

            (d) The Company shall at all times maintain its books of account and
records relating to the Intellectual Property at its principal place of business
and its Intellectual Property at the locations set forth on Schedule A attached
hereto and may not relocate such books of account and records unless it delivers
to the Secured Party at least 30 days prior to such relocation (i) written
notice of such relocation and the new location thereof (which must be within the
United States) and (ii) evidence that the necessary documents have been filed
and recorded and other steps have been taken to perfect the Security Interest to
create in favor of the Secured Party valid, perfected and continuing first
priority liens in the Intellectual Property to the extent they can be perfected
through such filings.

            (e) This Agreement creates in favor of the Secured Party a valid
security interest in the Intellectual Property securing the payment and
performance of the Obligations and, upon making the filings required hereunder,
a perfected first priority security interest in such Intellectual Property to
the extent that it can be perfected through such filings.

            (f) Upon request of the Secured Party, the Company shall execute and
deliver any and all agreements, instruments, documents, and papers as the
Secured Party may request to evidence the Secured Party's security interest in
the Intellectual Property and the goodwill and general intangibles of the
Company relating thereto or represented thereby, and the Company hereby appoints
the Secured Party its attorney-in-fact to execute and file all such writings for
the foregoing purposes, all acts of such attorney being hereby ratified and
confirmed; such power being coupled with an interest is irrevocable until the
Obligations have been fully satisfied and are paid in full.

                                        4
<PAGE>

            (g) Except as set forth on Schedule D, the execution, delivery and
performance of this Agreement does not conflict with or cause a breach or
default, or an event that with or without the passage of time or notice, shall
constitute a breach or default, under any agreement to which the Company is a
party or by which the Company is bound. No consent (including, without
limitation, from stock holders or creditors of the Company) is required for the
Company to enter into and perform its obligations hereunder.

            (h) The Company shall at all times maintain the liens and Security
Interest provided for hereunder as valid and perfected first priority liens and
security interests in the Intellectual Property to the extent they can be
perfected by filing in favor of the Secured Party until this Agreement and the
Security Interest hereunder shall terminate pursuant to Section 11. The Company
hereby agrees to defend the same against any and all persons. The Company shall
safeguard and protect all Intellectual Property for the account of the Secured
Party. Without limiting the generality of the foregoing, the Company shall pay
all fees, taxes and other amounts necessary to maintain the Intellectual
Property and the Security Interest hereunder, and the Company shall obtain and
furnish to the Secured Party from time to time, upon demand, such releases
and/or subordinations of claims and liens which may be required to maintain the
priority of the Security Interest hereunder.

            (i) The Company will not transfer, pledge, hypothecate, encumber,
license (except for non-exclusive licenses granted by the Company in the
ordinary course of business), sell or otherwise dispose of any of the
Intellectual Property without the prior written consent of the Secured Party,
which consent will not be unreasonably withheld.

            (j) The Company shall, within ten (10) days of obtaining knowledge
thereof, advise the Secured Party promptly, in sufficient detail, of any
substantial change in the Intellectual Property, and of the occurrence of any
event which would have a material adverse effect on the value of the
Intellectual Property or on the Secured Party's security interest therein.

            (k) The Company shall permit the Secured Party and its
representatives and agents to inspect the Intellectual Property at any time, and
to make copies of records pertaining to the Intellectual Property as may be
requested by the Secured Party from time to time.

            (l) The Company will take all steps reasonably necessary to
diligently pursue and seek to preserve, enforce and collect any rights, claims,
causes of action and accounts receivable in respect of the Intellectual
Property.

            (m) The Company shall promptly notify the Secured Party in
sufficient detail upon becoming aware of any attachment, garnishment, execution
or other legal process levied against any Intellectual Property and of any other
information received by the Company that may materially affect the value of the
Intellectual Property, the Security Interest or the rights and remedies of the
Secured Party hereunder.

            (n) All information heretofore, herein or hereafter supplied to the
Secured Party by or on behalf of the Company with respect to the Intellectual
Property is accurate and complete in all material respects as of the date
furnished.

            (o) Schedule A attached hereto contains a list of all of the
subsidiaries of Company.

                                        5
<PAGE>

            (p) Schedule B attached hereto includes all Licenses, and all
Patents and Patent Licenses, if any, owned by the Company in its own name as of
the date hereof. Schedule B hereto includes all Trademarks and Trademark
Licenses, if any, owned by the Company in its own name as of the date hereof.
Schedule B hereto includes all Copyrights and Copyright Licenses, if any, owned
by the Company in its own name as of the date hereof. Schedule B hereto includes
all Trade Secrets and Trade Secret Licenses, if any, owned by the Company as of
the date hereof. To the best of the Company's knowledge, each License, Patent,
Trademark, Copyright and Trade Secret is valid, subsisting, unexpired,
enforceable and has not been abandoned. Except as set forth in Schedule B, none
of such Licenses, Patents, Trademarks, Copyrights and Trade Secrets is the
subject of any licensing or franchise agreement. To the best of the Company's
knowledge, no holding, decision or judgment has been rendered by any
Governmental Body which would limit, cancel or question the validity of any
License, Patent, Trademark, Copyright and Trade Secrets . Except as set forth in
Schedule B, no action or proceeding is pending (i) seeking to limit, cancel or
question the validity of any License, Patent, Trademark, Copyright or Trade
Secret, or (ii) which, if adversely determined, would have a material adverse
effect on the value of any License, Patent, Trademark, Copyright or Trade
Secret. The Company has used and will continue to use for the duration of this
Agreement, proper statutory notice in connection with its use of the Patents,
Trademarks and Copyrights and consistent standards of quality in products leased
or sold under the Patents, Trademarks and Copyrights.

            (q)   With respect to any Intellectual Property:

                  (i)   such Intellectual Property is subsisting and has not
                        been adjudged invalid or unenforceable, in whole or in
                        part;

                  (ii)  such Intellectual Property is valid and enforceable;

                  (iii) the Company has made all necessary filings and
                        recordations to protect its interest in such
                        Intellectual Property, including, without limitation,
                        recordations of all of its interests in the Patents,
                        Patent Licenses, Trademarks and Trademark Licenses in
                        the United States Patent and Trademark Office and in
                        corresponding offices throughout the world and its
                        claims to the Copyrights and Copyright Licenses in the
                        United States Copyright Office and in corresponding
                        offices throughout the world;

                  (iv)  other than as set forth in Schedule B, the Company is
                        the exclusive owner of the entire and unencumbered
                        right, title and interest in and to such Intellectual
                        Property and no claim has been made that the use of such
                        Intellectual Property infringes on the asserted rights
                        of any third party; and

                  (v)   the Company has performed and will continue to perform
                        all acts and has paid all required fees and taxes to
                        maintain each and every item of Intellectual Property in
                        full force and effect throughout the world, as
                        applicable.

                                        6
<PAGE>

            (r) Except with respect to any Trademark or Copyright that the
Company shall reasonably determine is of negligible economic value to the
Company, the Company shall:

                  (i) maintain each Trademark and Copyright in full force free
            from any claim of abandonment for non-use, maintain as in the past
            the quality of products and services offered under such Trademark or
            Copyright; employ such Trademark or Copyright with the appropriate
            notice of registration; not adopt or use any mark which is
            confusingly similar or a colorable imitation of such Trademark or
            Copyright unless the Secured Party shall obtain a perfected security
            interest in such mark pursuant to this Agreement; and not (and not
            permit any licensee or sublicensee thereof to) do any act or
            knowingly omit to do any act whereby any Trademark or Copyright may
            become invalidated;

                  (ii) not, except with respect to any Patent that it shall
            reasonably determine is of negligible economic value to it, do any
            act, or omit to do any act, whereby any Patent may become abandoned
            or dedicated; and

                  (iii) notify the Secured Party immediately if it knows, or has
            reason to know, that any application or registration relating to any
            Patent, Trademark or Copyright may become abandoned or dedicated, or
            of any adverse determination or development (including, without
            limitation, the institution of, or any such determination or
            development in, any proceeding in the United States Patent and
            Trademark Office, United States Copyright Office or any court or
            tribunal in any country) regarding its ownership of any Patent,
            Trademark or Copyright or its right to register the same or to keep
            and maintain the same.

            (s) Whenever the Company, either by itself or through any agent,
employee, licensee or designee, shall file an application for the registration
of any Patent, Trademark or Copyright with the United States Patent and
Trademark Office, United States Copyright Office or any similar office or agency
in any other country or any political subdivision thereof or acquire rights to
any new Patent, Trademark or Copyright whether or not registered, report such
filing to the Secured Party within five business days after the last day of the
fiscal quarter in which such filing occurs.

            (t) The Company shall take all reasonable and necessary steps,
including, without limitation, in any proceeding before the United States Patent
and Trademark Office, United States Copyright Office or any similar office or
agency in any other country or any political subdivision thereof, to maintain
and pursue each application (and to obtain the relevant registration) and to
maintain each registration of the Patents, Trademarks and Copyrights, including,
without limitation, filing of applications for renewal, affidavits of use and
affidavits of incontestability.

                                        7
<PAGE>

            (u) In the event that any Patent, Trademark or Copyright included in
the Intellectual Property is infringed, misappropriated or diluted by a third
party, promptly notify the Secured Party after it learns thereof and shall,
unless it shall reasonably determine that such Patent, Trademark or Copyright is
of negligible economic value to it, which determination it shall promptly report
to the Secured Party, promptly sue for infringement, misappropriation or
dilution, to seek injunctive relief where appropriate and to recover any and all
damages for such infringement, misappropriation or dilution, or take such other
actions as it shall reasonably deem appropriate under the circumstances to
protect such Patent, Trademark or Copyright. If the Company lacks the financial
resources to comply with this Section 3(t), the Company shall so notify the
Secured Party and shall cooperate fully with any enforcement action undertaken
by the Secured Party on behalf of the Company.

      4. Defaults. The following events shall be "Events of Default":

            (a) The occurrence of an Event of Default (as defined in the Notes)
under the Notes;

            (b) Any representation or warranty of the Company in this Agreement
or in the Security Agreement shall prove to have been incorrect in any material
respect when made;

            (c) The failure by the Company to observe or perform any of its
obligations hereunder or in the Security Agreement for ten (10) days after
receipt by the Company of notice of such failure from the Secured Party; and

            (d) Any breach of, or default under, the Warrants.

      5. Duty To Hold In Trust. Upon the occurrence of any Event of Default and
at any time thereafter, the Company shall, upon receipt by it of any revenue,
income or other sums subject to the Security Interest, whether payable pursuant
to the Notes or otherwise, or of any check, draft, note, trade acceptance or
other instrument evidencing an obligation to pay any such sum, hold the same in
trust for the Secured Party and shall forthwith endorse and transfer any such
sums or instruments, or both, to the Secured Party for application to the
satisfaction of the Obligations.

      6. Rights and Remedies Upon Default. Upon occurrence of any Event of
Default and at any time thereafter, the Secured Party shall have the right to
exercise all of the remedies conferred hereunder and under the Notes, and the
Secured Party shall have all the rights and remedies of a secured party under
the UCC and/or any other applicable law (including the Uniform Commercial Code
of any jurisdiction in which any Intellectual Property is then located). Without
limitation, the Secured Party shall have the following rights and powers:

                                        8
<PAGE>

            (a) The Secured Party shall have the right to take possession of the
Intellectual Property and, for that purpose, enter, with the aid and assistance
of any person, any premises where the Intellectual Property, or any part
thereof, is or may be placed and remove the same, and the Company shall assemble
the Intellectual Property and make it available to the Secured Party at places
which the Secured Party shall reasonably select, whether at the Company's
premises or elsewhere, and make available to the Secured Party, without rent,
all of the Company's respective premises and facilities for the purpose of the
Secured Party taking possession of, removing or putting the Intellectual
Property in saleable or disposable form.

            (b) The Secured Party shall have the right to operate the business
of the Company using the Intellectual Property and shall have the right to
assign, sell, lease or otherwise dispose of and deliver all or any part of the
Intellectual Property, at public or private sale or otherwise, either with or
without special conditions or stipulations, for cash or on credit or for future
delivery, in such parcel or parcels and at such time or times and at such place
or places, and upon such terms and conditions as the Secured Party may deem
commercially reasonable, all without (except as shall be required by applicable
statute and cannot be waived) advertisement or demand upon or notice to the
Company or right of redemption of the Company, which are hereby expressly
waived. Upon each such sale, lease, assignment or other transfer of Intellectual
Property, the Secured Party may, unless prohibited by applicable law which
cannot be waived, purchase all or any part of the Intellectual Property being
sold, free from and discharged of all trusts, claims, right of redemption and
equities of the Company, which are hereby waived and released.

      7. Applications of Proceeds. The proceeds of any such sale, lease or other
disposition of the Intellectual Property hereunder shall be applied first, to
the expenses of retaking, holding, storing, processing and preparing for sale,
selling, and the like (including, without limitation, any taxes, fees and other
costs incurred in connection therewith) of the Intellectual Property, to the
reasonable attorneys' fees and expenses incurred by the Secured Party in
enforcing its rights hereunder and in connection with collecting, storing and
disposing of the Intellectual Property, and then to satisfaction of the
Obligations, and to the payment of any other amounts required by applicable law,
after which the Secured Party shall pay to the Company any surplus proceeds. If,
upon the sale, license or other disposition of the Intellectual Property, the
proceeds thereof are insufficient to pay all amounts to which the Secured Party
is legally entitled, the Company will be liable for the deficiency, together
with interest thereon, at the rate of 15% per annum (the "Default Rate"), and
the reasonable fees of any attorneys employed by the Secured Party to collect
such deficiency. To the extent permitted by applicable law, the Company waives
all claims, damages and demands against the Secured Party arising out of the
repossession, removal, retention or sale of the Intellectual Property, unless
due to the gross negligence or willful misconduct of the Secured Party.

                                        9
<PAGE>

      8. Costs and Expenses. The Company agrees to pay all out-of-pocket fees,
costs and expenses incurred in connection with any filing required hereunder,
including without limitation, any financing statements, continuation statements,
partial releases and/or termination statements related thereto or any expenses
of any searches reasonably required by the Secured Party. The Company shall also
pay all other claims and charges which in the reasonable opinion of the Secured
Party might prejudice, imperil or otherwise affect the Intellectual Property or
the Security Interest therein. The Company will also, upon demand, pay to the
Secured Party the amount of any and all reasonable expenses, including the
reasonable fees and expenses of its counsel and of any experts and agents, which
the Secured Party may incur in connection with (i) the enforcement of this
Agreement, (ii) the custody or preservation of, or the sale of, collection from,
or other realization upon, any of the Intellectual Property, or (iii) the
exercise or enforcement of any of the rights of the Secured Party under the
Notes. Until so paid, any fees payable hereunder shall be added to the principal
amount of the Notes and shall bear interest at the Default Rate.

      9. Responsibility for Intellectual Property. The Company assumes all
liabilities and responsibility in connection with all Intellectual Property, and
the obligations of the Company hereunder or under the Notes and the Warrants
shall in no way be affected or diminished by reason of the loss, destruction,
damage or theft of any of the Intellectual Property or its unavailability for
any reason.

      10. Security Interest Absolute. All rights of the Secured Party and all
Obligations of the Company hereunder, shall be absolute and unconditional,
irrespective of: (a) any lack of validity or enforceability of this Agreement,
the Notes, the Warrants or any agreement entered into in connection with the
foregoing, or any portion hereof or thereof; (b) any change in the time, manner
or place of payment or performance of, or in any other term of, all or any of
the Obligations, or any other amendment or waiver of or any consent to any
departure from the Notes, the Warrants or any other agreement entered into in
connection with the foregoing; (c) any exchange, release or nonperfection of any
of the Intellectual Property, or any release or amendment or waiver of or
consent to departure from any other Intellectual Property for, or any guaranty,
or any other security, for all or any of the Obligations; (d) any action by the
Secured Party to obtain, adjust, settle and cancel in its sole discretion any
insurance claims or matters made or arising in connection with the Intellectual
Property; or (e) any other circumstance which might otherwise constitute any
legal or equitable defense available to the Company, or a discharge of all or
any part of the Security Interest granted hereby. Until the Obligations shall
have been paid and performed in full, the rights of the Secured Party shall
continue even if the Obligations are barred for any reason, including, without
limitation, the running of the statute of limitations or bankruptcy. The Company
expressly waives presentment, protest, notice of protest, demand, notice of
nonpayment and demand for performance. In the event that at any time any
transfer of any Intellectual Property or any payment received by the Secured
Party hereunder shall be deemed by final order of a court of competent
jurisdiction to have been a voidable preference or fraudulent conveyance under
the bankruptcy or insolvency laws of the United States, or shall be deemed to be
otherwise due to any party other than the Secured Party, then, in any such
event, the Company's obligations hereunder shall survive cancellation of this
Agreement, and shall not be discharged or satisfied by any prior payment thereof
and/or cancellation of this Agreement, but shall remain a valid and binding
obligation enforceable in accordance with the terms and provisions hereof. The
Company waives all right to require the Secured Party to proceed against any
other person or to apply any Intellectual Property which the Secured Party may
hold at any time, or to marshal assets, or to pursue any other remedy. The
Company waives any defense arising by reason of the application of the statute
of limitations to any obligation secured hereby.

                                       10
<PAGE>

      11. Term of Agreement. This Agreement and the Security Interest shall
terminate on the date on which all payments under the Notes have been made in
full and all other Obligations have been paid or discharged. Upon such
termination, the Secured Party, at the request and at the expense of the
Company, will join in executing any termination statement with respect to any
financing statement executed and filed pursuant to this Agreement.

      12. Power of Attorney; Further Assurances.

            (a) The Company authorizes the Secured Party, and does hereby make,
constitute and appoint it, and its respective officers, agents, successors or
assigns with full power of substitution, as the Company's true and lawful
attorney-in-fact, with power, in its own name or in the name of the Company, to,
after the occurrence and during the continuance of an Event of Default, (i)
endorse any notes, checks, drafts, money orders, or other instruments of payment
(including payments payable under or in respect of any policy of insurance) in
respect of the Intellectual Property that may come into possession of the
Secured Party; (ii) to sign and endorse any UCC financing statement or any
invoice, freight or express bill, bill of lading, storage or warehouse receipts,
drafts against debtors, assignments, verifications and notices in connection
with accounts, and other documents relating to the Intellectual Property; (iii)
to pay or discharge taxes, liens, security interests or other encumbrances at
any time levied or placed on or threatened against the Intellectual Property;
(iv) to demand, collect, receipt for, compromise, settle and sue for monies due
in respect of the Intellectual Property; and (v) generally, to do, at the option
of the Secured Party, and at the Company's expense, at any time, or from time to
time, all acts and things which the Secured Party deems necessary to protect,
preserve and realize upon the Intellectual Property and the Security Interest
granted therein in order to effect the intent of this Agreement, the Notes and
the Warrants, all as fully and effectually as the Company might or could do; and
the Company hereby ratifies all that said attorney shall lawfully do or cause to
be done by virtue hereof. This power of attorney is coupled with an interest and
shall be irrevocable for the term of this Agreement and thereafter as long as
any of the Obligations shall be outstanding.

            (b) On a continuing basis, the Company will make, execute,
acknowledge, deliver, file and record, as the case may be, in the proper filing
and recording places in any jurisdiction, including, without limitation, the
jurisdictions indicated on Schedule C, attached hereto, all such instruments,
and take all such action as may reasonably be deemed necessary or advisable, or
as reasonably requested by the Secured Party, to perfect the Security Interest
granted hereunder and otherwise to carry out the intent and purposes of this
Agreement, or for assuring and confirming to the Secured Party the grant or
perfection of a security interest in all the Intellectual Property.

            (c) The Company hereby irrevocably appoints the Secured Party as the
Company's attorney-in-fact, with full authority in the place and stead of the
Company and in the name of the Company, from time to time in the Secured Party's
discretion, to take any action and to execute any instrument which the Secured
Party may deem necessary or advisable to accomplish the purposes of this
Agreement, including the filing, in its sole discretion, of one or more
financing or continuation statements and amendments thereto, relative to any of
the Intellectual Property without the signature of the Company where permitted
by law.

                                       11
<PAGE>

      13. Notices. All notices, requests, demands and other communications
hereunder shall be in writing, with copies to all the other parties hereto, and
shall be deemed to have been duly given when (i) if delivered by hand, upon
receipt, (ii) if sent by facsimile, upon receipt of proof of sending thereof,
(iii) if sent by nationally recognized overnight delivery service (receipt
requested), the next business day or (iv) if mailed by first-class registered or
certified mail, return receipt requested, postage prepaid, four days after
posting in the U.S. mails, in each case if delivered to the following addresses:

If to the Company:                      Sew Cal Logo, Inc.
                                        207 W. 138th Street
                                        Los Angeles, CA 90061
                                        Attention: Chief Executive Officer
                                        Telephone:     (310) 352-3300
                                        Facsimile:     (866) 820-6476

With a copy to:                         Anslow & Jaclin, LLP
                                        195 Route 9, Suite 204
                                        Manalapan, NJ 07725
                                        Attention:  Gregg Jaclin, Esq.
                                        Telephone:  (732) 409-1212
                                        Facsimile:  (732) 577-1188

If to the Secured Party:                AJW Partners, LLC
                                        AJW Offshore, Ltd.
                                        AJW Qualified Partners, LLC
                                        New Millennium Capital Partners, II, LLC
                                        1044 Northern Boulevard
                                        Suite 302
                                        Roslyn, New York  11576
                                        Attention:  Corey Ribotsky
                                        Facsimile:  516-739-7115

With copies to:                         Ballard Spahr Andrews & Ingersoll, LLP
                                        1735 Market Street, 51st Floor
                                        Philadelphia, Pennsylvania  19103
                                        Attention:  Gerald J. Guarcini, Esquire
                                        Facsimile:  215-864-8999

      14. Other Security. To the extent that the Obligations are now or
hereafter secured by property other than the Intellectual Property or by the
guarantee, endorsement or property of any other person, firm, corporation or
other entity, then the Secured Party shall have the right, in its sole
discretion, to pursue, relinquish, subordinate, modify or take any other action
with respect thereto, without in any way modifying or affecting any of the
Secured Party's rights and remedies hereunder.

                                       12
<PAGE>

      15. Miscellaneous.

            (a) No course of dealing between the Company and the Secured Party,
nor any failure to exercise, nor any delay in exercising, on the part of the
Secured Party, any right, power or privilege hereunder or under the Notes shall
operate as a waiver thereof; nor shall any single or partial exercise of any
right, power or privilege hereunder or thereunder preclude any other or further
exercise thereof or the exercise of any other right, power or privilege.

            (b) All of the rights and remedies of the Secured Party with respect
to the Intellectual Property, whether established hereby or by the Notes or by
any other agreements, instruments or documents or by law shall be cumulative and
may be exercised singly or concurrently.

            (c) This Agreement and the Security Agreement constitute the entire
agreement of the parties with respect to the subject matter hereof and is
intended to supersede all prior negotiations, understandings and agreements with
respect thereto. Except as specifically set forth in this Agreement, no
provision of this Agreement may be modified or amended except by a written
agreement specifically referring to this Agreement and signed by the parties
hereto.

            (d) In the event that any provision of this Agreement is held to be
invalid, prohibited or unenforceable in any jurisdiction for any reason, unless
such provision is narrowed by judicial construction, this Agreement shall, as to
such jurisdiction, be construed as if such invalid, prohibited or unenforceable
provision had been more narrowly drawn so as not to be invalid, prohibited or
unenforceable. If, notwithstanding the foregoing, any provision of this
Agreement is held to be invalid, prohibited or unenforceable in any
jurisdiction, such provision, as to such jurisdiction, shall be ineffective to
the extent of such invalidity, prohibition or unenforceability without
invalidating the remaining portion of such provision or the other provisions of
this Agreement and without affecting the validity or enforceability of such
provision or the other provisions of this Agreement in any other jurisdiction.

            (e) No waiver of any breach or default or any right under this
Agreement shall be considered valid unless in writing and signed by the party
giving such waiver, and no such waiver shall be deemed a waiver of any
subsequent breach or default or right, whether of the same or similar nature or
otherwise.

            (f) This Agreement shall be binding upon and inure to the benefit of
each party hereto and its successors and assigns.

            (g) Each party shall take such further action and execute and
deliver such further documents as may be necessary or appropriate in order to
carry out the provisions and purposes of this Agreement.

                                       13
<PAGE>

            (h) This Agreement shall be construed in accordance with the laws of
the State of New York, except to the extent the validity, perfection or
enforcement of a security interest hereunder in respect of any particular
Intellectual Property which are governed by a jurisdiction other than the State
of New York in which case such law shall govern. Each of the parties hereto
irrevocably submit to the exclusive jurisdiction of any New York State or United
States Federal court sitting in Manhattan county over any action or proceeding
arising out of or relating to this Agreement, and the parties hereto hereby
irrevocably agree that all claims in respect of such action or proceeding may be
heard and determined in such New York State or Federal court. The parties hereto
agree that a final judgment in any such action or proceeding shall be conclusive
and may be enforced in other jurisdictions by suit on the judgment or in any
other manner provided by law. The parties hereto further waive any objection to
venue in the State of New York and any objection to an action or proceeding in
the State of New York on the basis of forum non conveniens.

            (i) EACH PARTY HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS
TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF
THIS AGREEMENT. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF
ANY DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATER
OF THIS AGREEMENT, INCLUDING WITHOUT LIMITATION CONTRACT CLAIMS, TORT CLAIMS,
BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY
HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT FOR EACH PARTY TO
ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH PARTY HAS ALREADY RELIED ON THIS
WAIVER IN ENTERING INTO THIS AGREEMENT AND THAT EACH PARTY WILL CONTINUE TO RELY
ON THIS WAIVER IN THEIR RELATED FUTURE DEALINGS. EACH PARTY FURTHER WARRANTS AND
REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT
SUCH PARTY HAS KNOWINGLY AND VOLUNTARILY WAIVES ITS RIGHTS TO A JURY TRIAL
FOLLOWING SUCH CONSULTATION. THIS WAIVER IS IRREVOCABLE, MEANING THAT,
NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, IT MAY NOT BE MODIFIED EITHER
ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS,
RENEWALS AND SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT. IN THE EVENT OF A
LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE
COURT.

            (j) This Agreement may be executed in any number of counterparts,
each of which when so executed shall be deemed to be an original and, all of
which taken together shall constitute one and the same Agreement. In the event
that any signature is delivered by facsimile transmission, such signature shall
create a valid binding obligation of the party executing (or on whose behalf
such signature is executed) the same with the same force and effect as if such
facsimile signature were the original thereof.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       14
<PAGE>

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

                                        SEW CAL LOGO, INC.

                                        By:  __________________________________
                                             Richard Songer
                                             President

                                        AJW PARTNERS, LLC
                                        By: SMS Group, LLC

                                        By:  __________________________________
                                             Corey S. Ribotsky
                                             Manager

                                        AJW OFFSHORE, LTD.
                                        By:  First Street Manager II, LLC

                                        By:  __________________________________
                                             Corey S. Ribotsky
                                             Manager

                                        AJW QUALIFIED PARTNERS, LLC
                                        By:  AJW Manager, LLC

                                        By:  __________________________________
                                             Corey S. Ribotsky
                                             Manager

                                        NEW MILLENNIUM CAPITAL PARTNERS II, LLC
                                        By:  First Street Manager II, LLC

                                        By:  __________________________________
                                             Corey S. Ribotsky
                                             Manager

                                       15
<PAGE>

                                   SCHEDULE A
                                   ----------

Principal Place of Business of the Company:
-------------------------------------------

Sew Cal Logo, Inc.
207 W. 138th Street
Los Angeles, CA 90061
Telephone:   (310) 352-3300
Facsimile:   (866) 820-6476

Locations Where Intellectual Property is Located or Stored:
-----------------------------------------------------------

Sew Cal Logo, Inc.
207 W. 138th Street
Los Angeles, CA 90061

List of Subsidiaries of the Company:
------------------------------------

None

                                       16
<PAGE>

                                   SCHEDULE B
                                   ----------

A.    Licenses, Patents and Patent Licenses
      -------------------------------------

                                                                 Registration or
      Patent       Application or Registration No.   Country     Filing Date
      ------       -------------------------------   -------     -----------

B.    Trademarks and Trademark Licenses
      ---------------------------------

                                                                 Registration or
      Trademark    Application or Registration No.   Country     Filing Date
      ---------    -------------------------------   -------     -----------

C.    Copyrights and Copyright Licenses
      ---------------------------------

                                                                 Registration or
      Name         Application or Registration No.   Country     Filing Date
      ----         -------------------------------   -------     -----------

D.    Trade Secrets and Trade Secret Licenses
      ---------------------------------------
                                                                 Registration or
      Name         Application or Registration No.   Country     Filing Date
      ----         -------------------------------   -------     -----------

                                       17
<PAGE>

                                   SCHEDULE C
                                   ----------

Jurisdictions:
--------------

CaliforniaEXHIBIT
      10.1

     

    SILVERLEAF
      FINANCE V, L.P.,

     

    as
      Issuer

     

    SILVERLEAF
      FINANCE V, LLC, 

     

    as
      General Partner

     

    SILVERLEAF
      RESORTS, INC.,

     

    as
      Servicer

     

    WELLS
      FARGO BANK, NATIONAL ASSOCIATION,

     

    as
      Backup
      Servicer

     

    and

     

    WELLS
      FARGO BANK, NATIONAL ASSOCIATION,

     

    as
      Indenture Trustee, Paying Agent, Custodian and Account Intermediary

     

    INDENTURE

     

    Dated
      as
      of August 1, 2006

    

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

TABLE
      OF
      CONTENTS

    
      
        	
              	 	 
	
                Article
                  I

              	
                DEFINITIONS
                  AND OTHER PROVISIONS OF GENERAL APPLICATION

              	
                3

              
	
                Section
                  1.1

              	
                General
                  Definitions.

              	
                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.

              	
                4

              
	
                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; WAIVER OF TRIAL BY JURY.

              	
                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.

              	
                15

              
	
                Section
                  2.6

              	
                Payment
                  of Interest and Principal; Rights Preserved.

              	
                15

              
	
                Section
                  2.7

              	
                Persons
                  Deemed Owners.

              	
                16

              
	
                Section
                  2.8

              	
                Cancellation.

              	
                16

              
	
                Section
                  2.9

              	
                Noteholder
                  Lists.

              	
                16

              
	
                Section
                  2.10

              	
                Treasury
                  Notes.

              	
                16

              
	
                Section
                  2.11

              	
                Notice
                  to Depository.

              	
                17

              
	
                Section
                  2.12

              	
                Confidentiality.

              	
                17

              
	
                Article
                  III

              	
                ACCOUNTS;
                  COLLECTION AND APPLICATION OF MONEYS; REPORTS

              	
                17

              
	
                Section
                  3.1

              	
                Trust
                  Accounts; Investments by Indenture Trustee.

              	
                17

              
	
                Section
                  3.2

              	
                Establishment
                  and Administration of the Trust Accounts.

              	
                19

              
	
                Section
                  3.3

              	
                Reserved.

              	
                24

              
	
                Section
                  3.4

              	
                Distributions.

              	
                24

              
	
                Section
                  3.5

              	
                Reports
                  to Noteholders.

              	
                27

              
	
                Section
                  3.6

              	
                Note
                  Balance Write-Down Amounts.

              	
                28

              
	
                Section
                  3.7

              	
                Withholding
                  Taxes.

              	
                28

              
	
                Article
                  IV

              	
                THE
                  COLLATERAL

              	
                28

              
	
                Section
                  4.1

              	
                Acceptance
                  by Indenture Trustee.

              	
                28

              
	
                Section
                  4.2

              	
                Subsequent
                  Timeshare Loans.

              	
                29

              
	
                Section
                  4.3

              	
                Grant
                  of Security Interest, Tax Treatment.

              	
                30

              
	
                Section
                  4.4

              	
                Further
                  Action Evidencing Assignments.

              	
                30

              
	
                Section
                  4.5

              	
                Substitution
                  and Repurchase of Timeshare Loans.

              	
                31

              
	
                Section
                  4.6

              	
                Release
                  of Lien.

              	
                33

              

      

       

      
        
          
          

        

        
          -i-

          
            

          

        

        
          
          

        

      

       

      
        	
                Section
                  4.7

              	
                Appointment
                  of Custodian and Paying Agent.

              	
                34

              
	
                Section
                  4.8

              	
                Sale
                  of Timeshare Loans.

              	
                34

              
	
                Article
                  V

              	
                SERVICING
                  OF TIMESHARE LOANS

              	
                34

              
	
                Section
                  5.1

              	
                Appointment
                  of Servicer and Backup Servicer; Servicing Standard.

              	
                34

              
	
                Section
                  5.2

              	
                Payments
                  on the Timeshare Loans.

              	
                34

              
	
                Section
                  5.3

              	
                Duties
                  and Responsibilities of the Servicer.

              	
                35

              
	
                Section
                  5.4

              	
                Servicer
                  Events of Default.

              	
                39

              
	
                Section
                  5.5

              	
                Accountings;
                  Statements and Reports.

              	
                42

              
	
                Section
                  5.6

              	
                Records.

              	
                44

              
	
                Section
                  5.7

              	
                Fidelity
                  Bond and Errors and Omissions Insurance.

              	
                44

              
	
                Section
                  5.8

              	
                Merger
                  or Consolidation of the Servicer.

              	
                44

              
	
                Section
                  5.9

              	
                Sub-Servicing.

              	
                45

              
	
                Section
                  5.10

              	
                Servicer
                  Resignation.

              	
                45

              
	
                Section
                  5.11

              	
                Fees
                  and Expenses.

              	
                46

              
	
                Section
                  5.12

              	
                Access
                  to Certain Documentation.

              	
                46

              
	
                Section
                  5.13

              	
                No
                  Offset.

              	
                46

              
	
                Section
                  5.14

              	
                Account
                  Statements.

              	
                46

              
	
                Section
                  5.15

              	
                Indemnification;
                  Third Party Claim.

              	
                47

              
	
                Section
                  5.16

              	
                Backup
                  Servicer.

              	
                47

              
	
                Section
                  5.17

              	
                Reserved.

              	
                48

              
	
                Section
                  5.18

              	
                Recordation.

              	
                48

              
	
                Article
                  VI

              	
                EVENTS
                  OF DEFAULT; REMEDIES

              	
                48

              
	
                Section
                  6.1

              	
                Events
                  of Default.

              	
                48

              
	
                Section
                  6.2

              	
                Acceleration
                  of Maturity; Rescission and Annulment.

              	
                50

              
	
                Section
                  6.3

              	
                Remedies.

              	
                52

              
	
                Section
                  6.4

              	
                Indenture
                  Trustee May File Proofs of Claim.

              	
                53

              
	
                Section
                  6.5

              	
                Indenture
                  Trustee May Enforce Claims Without Possession of Notes.

              	
                53

              
	
                Section
                  6.6

              	
                Application
                  of Money Collected.

              	
                54

              
	
                Section
                  6.7

              	
                Limitation
                  on Suits.

              	
                56

              
	
                Section
                  6.8

              	
                Unconditional
                  Right of Noteholders to Receive Principal and Interest.

              	
                57

              
	
                Section
                  6.9

              	
                Restoration
                  of Rights and Remedies.

              	
                57

              
	
                Section
                  6.10

              	
                Rights
                  and Remedies Cumulative.

              	
                57

              
	
                Section
                  6.11

              	
                Delay
                  or Omission Not Waiver.

              	
                57

              
	
                Section
                  6.12

              	
                Control
                  by Noteholders.

              	
                57

              
	
                Section
                  6.13

              	
                Waiver
                  of Events of Default.

              	
                58

              
	
                Section
                  6.14

              	
                Undertaking
                  for Costs.

              	
                58

              
	
                Section
                  6.15

              	
                Reserved.

              	
                59

              
	
                Section
                  6.16

              	
                Collateral.

              	
                59

              
	
                Section
                  6.17

              	
                Action
                  on Notes.

              	
                59

              
	
                Section
                  6.18

              	
                Performance
                  and Enforcement of Certain Obligations.

              	
                60

              
	
                Article
                  VII

              	
                THE
                  INDENTURE TRUSTEE

              	
                60

              
	
                Section
                  7.1

              	
                Certain
                  Duties.

              	
                60

              
	
                Section
                  7.2

              	
                Notice
                  of Events of Default.

              	
                61

              
	
                Section
                  7.3

              	
                Certain
                  Matters Affecting the Indenture Trustee

              	
                62

              
	
                Section
                  7.4

              	
                Indenture
                  Trustee Not Liable for Notes or Timeshare Loans.

              	
                63

              
	
                Section
                  7.5

              	
                Indenture
                  Trustee May Own Notes.

              	
                63

              

      

       

      
        
          
          

        

        
          -ii-

          
            

          

        

        
          
          

        

      

       

      
        	
                Section
                  7.6

              	
                Indenture
                  Trustee's Fees and Expenses.

              	
                63

              
	
                Section
                  7.7

              	
                Eligibility
                  Requirements for Indenture Trustee.

              	
                63

              
	
                Section
                  7.8

              	
                Resignation
                  or Removal of Indenture Trustee.

              	
                64

              
	
                Section
                  7.9

              	
                Successor
                  Indenture Trustee.

              	
                65

              
	
                Section
                  7.10

              	
                Merger
                  or Consolidation of Indenture Trustee.

              	
                66

              
	
                Section
                  7.11

              	
                Appointment
                  of Co-Indenture Trustee or Separate Indenture Trustee.

              	
                66

              
	
                Section
                  7.12

              	
                Paying
                  Agent and Note Registrar Rights.

              	
                68

              
	
                Section
                  7.13

              	
                Authorization.

              	
                68

              
	
                Section
                  7.14

              	
                Maintenance
                  of Office or Agency.

              	
                68

              
	
                Article
                  VIII

              	
                COVENANTS
                  OF THE ISSUER AND THE GENERAL PARTNER

              	
                68

              
	
                Section
                  8.1

              	
                Payment
                  of Principal and Interest.

              	
                68

              
	
                Section
                  8.2

              	
                Reserved.

              	
                68

              
	
                Section
                  8.3

              	
                Money
                  for Payments to Noteholders to Be Held in Trust.

              	
                69

              
	
                Section
                  8.4

              	
                Existence;
                  Merger; Consolidation, etc.

              	
                70

              
	
                Section
                  8.5

              	
                Protection
                  of Collateral; Further Assurances.

              	
                71

              
	
                Section
                  8.6

              	
                Additional
                  Covenants

              	
                73

              
	
                Section
                  8.7

              	
                Taxes.

              	
                75

              
	
                Section
                  8.8

              	
                Restricted
                  Payments.

              	
                75

              
	
                Section
                  8.9

              	
                Treatment
                  of Notes as Debt for Tax Purposes.

              	
                76

              
	
                Section
                  8.10

              	
                Further
                  Instruments and Acts.

              	
                76

              
	
                Section
                  8.11

              	
                Compliance
                  with Limited Partnership Agreement and LLC Agreement

              	
                76

              
	
                Section
                  8.12

              	
                Separateness
                  Covenants

              	
                76

              
	
                Article
                  IX

              	
                SUPPLEMENTAL
                  INDENTURES

              	
                79

              
	
                Section
                  9.1

              	
                Supplemental
                  Indentures.

              	
                79

              
	
                Section
                  9.2

              	
                Supplemental
                  Indentures with Consent of Noteholders.

              	
                79

              
	
                Section
                  9.3

              	
                Execution
                  of Supplemental Indentures.

              	
                80

              
	
                Section
                  9.4

              	
                Effect
                  of Supplemental Indentures.

              	
                80

              
	
                Section
                  9.5

              	
                Reference
                  in Notes to Supplemental Indentures.

              	
                81

              
	
                Article
                  X

              	
                REDEMPTION
                  OF NOTES

              	
                81

              
	
                Section
                  10.1

              	
                Optional
                  Redemption; Election to Redeem.

              	
                81

              
	
                Section
                  10.2

              	
                Notice
                  to Indenture Trustee.

              	
                81

              
	
                Section
                  10.3

              	
                Notice
                  of Redemption by the Servicer.

              	
                81

              
	
                Section
                  10.4

              	
                Deposit
                  of Redemption Price.

              	
                81

              
	
                Section
                  10.5

              	
                Notes
                  Payable on Redemption Date.

              	
                81

              
	
                Article
                  XI

              	
                SATISFACTION
                  AND DISCHARGE

              	
                82

              
	
                Section
                  11.1

              	
                Satisfaction
                  and Discharge of Indenture.

              	
                82

              
	
                Section
                  11.2

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

              	
                83

              
	
                Section
                  11.3

              	
                Trust
                  Termination Date.

              	
                83

              
	
                Article
                  XII

              	
                REPRESENTATIONS
                  AND WARRANTIES AND COVENANTS

              	
                83

              
	
                Section
                  12.1

              	
                Representations,
                  Warranties and Covenants of the Issuer.

              	
                83

              
	
                Section
                  12.2

              	
                Representations
                  and Warranties of the Servicer.

              	
                85

              
	
                Section
                  12.3

              	
                Representations
                  and Warranties of the Indenture Trustee.

              	
                87

              
	
                Section
                  12.4

              	
                Multiple
                  Roles.

              	
                89

              
	
                Section
                  12.5

              	
                Representations,
                  Warranties and Covenants of the General Partner.

              	
                89

              
	
                Section
                  12.6

              	
                [Reserved].

              	
                90

              

      

       

      
        
          
          

        

        
          -iii-

          
            

          

        

        
          
          

        

      

       

      
        	
                Section
                  12.7

              	
                Representations
                  and Warranties of the Backup Servicer.

              	
                90

              
	
                Article
                  XIII

              	
                MISCELLANEOUS

              	
                91

              
	
                Section
                  13.1

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

              	
                91

              
	
                Section
                  13.2

              	
                Statements
                  Required in Certificate or Opinion.

              	
                92

              
	
                Section
                  13.3

              	
                Notices.

              	
                92

              
	
                Section
                  13.4

              	
                No
                  Proceedings.

              	
                94

              

      

    

     

    
      	 	 
	
              Exhibit
                A

            	
              Form
                of Notes

            
	
              Exhibit
                B

            	
              Form
                of Investor Representation Letter - Rule 144A

            
	
              Exhibit
                C

            	
              Reserved

            
	
              Exhibit
                D

            	
              Form
                of Monthly Servicer Report

            
	
              Exhibit
                E

            	
              Servicing
                Officer’s Certificate

            
	
              Exhibit
                F

            	
              Reserved

            
	
              Exhibit
                G

            	
              Form
                of ROAP Waiver Letter

            
	
              Exhibit
                H

            	
              List
                of Silverleaf Executive Management

            
	
              Exhibit
                I

            	
              Form
                of Investor Representation Letter - Regulation S

            
	
              Exhibit
                J

            	
              Form
                of Transferor Certification - Rule 144A Global Note to Temporary
                Regulation S Global Note

            
	
              Exhibit
                K

            	
              Form
                of Transferor Certification - Rule 144A Global Note to Regulation
                S Global
                Note

            
	
              Exhibit
                L

            	
              Form
                of Transferor Certification - Regulation S Global Note to Rule 144A
                Global
                Note 

            
	
              Exhibit
                M

            	
              Form
                of Class G Note Investor Representation Letter

            
	
              Annex
                A

            	
              Standard
                Definitions

            
	
              Schedule
                I

            	
              Schedule
                of Timeshare Loans

            

    

     

    
      
        
        

      

      
        -iv-

        
          

        

      

      
        
        

      

    

     

    INDENTURE

     

    This
      INDENTURE, dated as of August 1, 2006 (the “Indenture”),
      is
      among SILVERLEAF FINANCE V, L.P., a limited partnership formed under the laws
      of
      the State of Delaware, as issuer (the “Issuer”),
      SILVERLEAF FINANCE V, LLC, a limited liability company formed under the laws
      of
      the State of Delaware, as general partner of the Issuer (the “General
      Partner”),
      SILVERLEAF RESORTS, INC. (“Silverleaf”),
      a
      Texas corporation, in its capacity as servicer (the “Servicer”),
      and
      WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association,
      as indenture trustee (the “Indenture
      Trustee”),
      paying agent (the “Paying
      Agent”),
      as
      custodian (the “Custodian”),
      as
      backup servicer (the “Backup
      Servicer”)
      and as
      a securities intermediary with respect to the Trust Accounts (in such capacity,
      the “Account
      Intermediary”).

     

    RECITALS
      OF THE ISSUER

     

    WHEREAS,
      the Issuer has duly authorized the execution and delivery of this Indenture
      to
      provide for the issuance of its $49,681,000 5.760% Timeshare Loan-Backed Notes,
      Series 2006-A, Class A (the “Class
      A Notes”),
      $21,736,000 5.909% Timeshare Loan-Backed Notes, Series 2006-A, Class B (the
      “Class
      B Notes”),
      $15,525,000 6.456% Timeshare Loan-Backed Notes, Series 2006-A, Class C (the
      “Class
      C Notes”),
      $15,525,000 7.249% Timeshare Loan-Backed Notes, Series 2006-A, Class D, (the
      “Class
      D Notes”),
      $7,763,000 7.793% Timeshare Loan-Backed Notes, Series 2006-A, Class E (the
      “Class
      E Notes”),
      $7,763,000 8.287% Timeshare Loan-Backed Notes, Series 2006-A, Class F (the
      “Class
      F Notes,”
and
      $10,092,000 10.000% Timeshare Loan-Backed Notes, Series 2006-A, Class G (the
      “Class
      G Notes,”
      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; and

     

    WHEREAS,
      the Servicer has agreed to service and administer the Timeshare Loans securing
      the Notes and the Backup Servicer has agreed to perform certain servicing duties
      pursuant to the Backup Servicing Agreement;

     

    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 allows:

     

    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

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

    and
      to
      the following whether now owned or hereafter acquired and any and all benefits
      accruing to the Issuer from, (i) the Timeshare Loans specified on Schedule
      I
      hereto, (ii) any Qualified Substitute Timeshare Loans and Subsequent Timeshare
      Loans, (iii) the Receivables in respect of each Timeshare Loan due on and after
      the related Cut-Off Date, (iv) 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), (v) all Related Security in respect of each Timeshare Loan, (vi)
      all
      rights and remedies under the Transfer Agreement, the Loan Sale Agreement,
      the
      Lockbox Agreement, the Backup Servicing Agreement, the Custodial Agreement
      and
      each Subsequent Transfer Agreement, (vii) all amounts in or to be deposited
      to
      the Lockbox Account, the Collection Account, the Reserve Account, the Prefunding
      Account and the Capitalized Interest Account, and (viii) proceeds of the
      foregoing (including, without limitation, all cash proceeds, accounts, accounts
      receivable, notes, drafts, acceptances, chattel paper, checks, deposit accounts,
      insurance proceeds, condemnation awards, rights to payment of any and every
      kind, and other forms of obligations and receivables which at any time
      constitute all or part or are included in the proceeds of any of the foregoing)
      (collectively, the “Collateral”). Notwithstanding
      the foregoing, the Collateral 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 Collateral 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.

     

    The
      Indenture Trustee further acknowledges that in the event the conveyance of
      the
      Timeshare Loans by Silverleaf to the Issuer pursuant to the Transfer Agreement
      and any Subsequent Transfer Agreement, or by the Seller to the Issuer pursuant
      to the Loan 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 shall not act at the direction of the Issuer
      without the prior written consent of the Indenture Trustee.

    
      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

    

     

    ARTICLE
      I

     

    DEFINITIONS
      AND OTHER PROVISIONS

    OF
      GENERAL APPLICATION

     

    Section
      1.1 General
      Definitions.

     

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

     

    Section
      1.2 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 one such 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
      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 are 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

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

    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.

     

    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.

      
        
          
          

        

        
          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 interest date,
      and not earlier than the earliest date, prescribed for the giving of such notice
      or the mailing of such report. In any case where a notice or report to
      Noteholders is mailed, neither the failure to mail such notice or report, nor
      any defect in any notice or report so mailed, to any particular Noteholder
      shall
      affect the sufficiency of such notice or report with respect to other
      Noteholders. Where this Indenture provides for notice in any 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 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 required to be delivered pursuant to any provision of this
      Indenture, then such notification or

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

    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; WAIVER OF TRIAL BY JURY.

     

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

     

    SILVERLEAF,
      ISSUER, GENERAL PARTNER, BACKUP SERVICER AND INDENTURE TRUSTEE HEREBY AGREE
      NOT
      TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVE ANY
      RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR
      HEREAFTER EXIST WITH REGARD TO THIS AGREEMENT. THIS WAIVER OF RIGHT TO TRIAL
      BY
      JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY SILVERLEAF, ISSUER, GENERAL PARTNER,
      BACKUP SERVICER AND INDENTURE TRUSTEE AND IS INTENDED TO ENCOMPASS INDIVIDUALLY
      EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO TRIAL BY JURY WOULD
      OTHERWISE ACCRUE OR EXIST. SILVERLEAF, ISSUER, GENERAL PARTNER, BACKUP SERVICER
      AND INDENTURE TRUSTEE ARE HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH
      IN
      ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY SILVERLEAF, ISSUER,
      GENERAL PARTNER, BACKUP SERVICER AND INDENTURE TRUSTEE.

     

    Section
      1.9 Legal
      Holidays.

     

    In
      any
      case where any Payment Date or the Stated Maturity or any other date of 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

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

    which
      principal of or interest on any Note is proposed to be paid, as the case may
      be,
      until such next succeeding Business Day.

     

    Section
      1.10 Execution
      in Counterparts.

     

    This
      Indenture may be executed in any number of counterparts, each of which such
      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 continuation of an Event of
      Default or a Service-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. 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 “Silverleaf Timeshare Loan-Backed Notes, Series
      2006-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 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, the 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 $49,681,000, $21,736,000, $15,525,000, $15,525,000, $7,763,000, $7,763,000
      and $10,092,000, respectively. The Notes shall be issuable only as registered
      Notes, without interest coupons, in the denominations of at least $25,000 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 $25,000.

     

    (c) Execution,
      Authentication, Delivery and Dating.
      The
      Notes shall be manually executed by an Authorized Officer of the Issuer. Any
      Note bearing the signature of an individual who was at the time of execution
      thereof an authorized Officer 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. The Notes sold
      to non-U.S. persons (as defined in Regulation S) in offshore transactions in
      reliance on Regulation S will initially be represented by one or more temporary
      Global Notes (each, a “Temporary
      Regulation S Global Note”).
      Upon
      the expiration of the Restricted Period, interests in a Temporary Regulation
      S
      Global Note will be exchangeable for interests in a permanent Global Note of
      the
      same Class (together with a Temporary Regulation S Global Note, a “Regulation
      S Global Note”).
      The
      Notes sold to U.S. Persons which are Qualified Institutional Buyers will be
      represented by one or more temporary Global Notes (each, a “Rule
      144A Global Note”).
      All
      Global Notes shall be initially registered on the Note Register in the name
      of
      Cede & Co., the nominee of 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:

     

    (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

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

    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

     

    (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, (b) the Issuer, at its sole option, advises the
      Indenture Trustee in writing that it elects to terminate the book-entry
      system with respect to any or all Classes of Notes through the Depository,
      or
      (c) 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 in, 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
      (“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 hereof for all purposes of this Indenture and
      the
      Note Registrar, the Issuer, the Indenture Trustee, the Servicer and
      any

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

    agent
      of
      any of them shall not be affected by any notice or knowledge to the contrary.
      A
      Definitive Note is transferable or exchangeable only upon the surrender of
      such
      Note to the Note Registrar at the Corporate Trust Office together with an
      assignment and transfer (executed by the Holder or his duly authorized
      attorney), subject to the applicable requirements of this Section 2.4. Upon
      request of the Indenture Trustee, the Note Registrar shall provide the Indenture
      Trustee with the names and addresses of any Noteholders.

     

    (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 consequently
      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 Holder
      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, in minimum denominations of $25,000 and in integral multiples of
      $1,000, and only if (i) such resale or transfer is in compliance with Rule
      144A
      under the Securities Act, 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 and to
      whom notice is given that such resale or transfer is being made in reliance
      upon
      Rule 144A under the Securities Act and, in the case of the registered holder
      of
      a Note, as certified by such registered holder (other than the Initial Purchaser
      and its initial transferees) in a letter in the form of Exhibit
      B
      hereto;
      (ii) such resale or transfer is in compliance with Regulation S under the
      Securities Act and, in the case of the registered holder of a Note, as certified
      by such registered holder (other than the Initial Purchaser and its initial
      transferees) in a letter in the form of Exhibit
      I
      hereto;
      (iii) after the appropriate holding period, such resale or transfer is pursuant
      to an exemption from registration under the Securities Act provided by Rule
      144
      under the Securities Act (if available); or (iv) such resale or transfer is
      made
      pursuant to an effective registration statement under the Securities Act, in
      each of cases (i) through (iv) in accordance with any applicable securities
      laws
      of any state of the United States and any other applicable jurisdiction. Each
      transferee and each subsequent transferee will be required to notify any
      subsequent purchaser of such Notes from it of the resale restrictions described
      above. In addition to any certificates delivered by the beneficial owners of
      Notes represented by beneficial interests in a Global Note, each Person that
      purchases or otherwise acquires any beneficial interest in a Global Note shall
      be deemed, by its purchase or other acquisition thereof, to have represented,
      warranted and agreed as provided in the legends of such Note and shall be deemed
      to have made the representations, warranties and covenants set forth with
      respect to a transferee in the letter attached as Exhibit
      B
      or
Exhibit
      I
      hereto,
      as applicable. Any purported transfer of a Note not in accordance with this
      Section 2.4 shall be null and void and shall not be given effect for any purpose
      hereunder. None of the Issuer, the Servicer or the Indenture Trustee is
      obligated to register or qualify the Notes under the

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

    Securities
      Act or any other securities law or to take any action not otherwise required
      under this Indenture to permit the transfer of any Note without
      registration.

     

    (d) Global
      Notes Restrictions.
      In
      addition to the applicable provisions of this Section 2.4 and the rules of
      the
      Depository, the exchange, transfer and registration of transfer of Global Notes
      shall only be made in accordance with this Section 2.4(d).  

     

    (i) Rule
      144A Global Note to Temporary Regulation S Global Note During the Restricted
      Period.
      If,
      during the Restricted Period, a Note Owner of an interest in a Rule 144A Global
      Note wishes at any time to transfer its beneficial interest in such Rule 144A
      Global Note to a Person who wishes to take delivery thereof in the form of
      a
      beneficial interest in a Temporary Regulation S Global Note, such Note Owner
      may
      transfer or cause the transfer of such beneficial interest for an equivalent
      beneficial interest in the Temporary Regulation S Global Note only upon
      compliance with all applicable rules and procedures of the Depository and
      Clearstream or Euroclear applicable to transfers by their respective
      participants (the “Applicable
      Procedures”)
      and in
      compliance with the provisions of this Section 2.4(d)(i). Upon receipt by the
      Note Registrar at its Corporate Trust Office of (1) written instructions given
      in accordance with the Applicable Procedures from a Depository Participant
      directing the Note Registrar to credit or cause to be credited to another
      specified Depository Participant’s account a beneficial interest in the
      Temporary Regulation S Global Note in an amount equal to the Denomination of
      the
      beneficial interest in the Rule 144A Global Note to be transferred, (2) a
      written order given in accordance with the Applicable Procedures containing
      information regarding the account of the Depository Participant (and the
      Euroclear or Clearstream account, as the case may be) to be credited with,
      and
      the account of the Depository Participant to be debited for, such beneficial
      interest, and (3) a certification in the form of Exhibit
      J
      hereto
      given by the Note Owner that is transferring such interest, the Note Registrar
      shall instruct the Depository to reduce the denomination of the Rule 144A Global
      Note by the denomination of the beneficial interest in the Rule 144A Global
      Note
      to be so transferred and, concurrently with such reduction, to increase the
      denomination of the Temporary Regulation S Global Note by the denomination
      of
      the beneficial interest in the Rule 144A Global Note to be so transferred,
      and
      to credit or cause to be credited to the account of the Person specified in
      such
      instructions (who shall be a Depository Participant acting for or on behalf
      of
      Euroclear or Clearstream, or both, as the case may be) a beneficial interest
      in
      the Temporary Regulation S Global Note having a denomination equal to the amount
      by which the denomination of the Rule 144A Global Note was reduced upon such
      transfer.

     

    (ii) Rule
      144A Global Note to Regulation S Global Note After the Restricted
      Period.
      If,
      after the Restricted Period, a Note Owner of an interest in a Rule 144A Global
      Note wishes at any time to transfer its beneficial interest in such Rule 144A
      Global Note to a Person who wishes to take delivery thereof in the form of
      a
      beneficial interest in a Regulation S Global Note, such holder may transfer
      or
      cause the transfer of such beneficial interest for an equivalent beneficial
      interest in a Regulation S Global Note only upon compliance with all Applicable
      Procedures and the provisions of this Section 2.4(d)(ii). Upon receipt by the
      Note Registrar at its Corporate Trust Office of (A) written instructions given
      in accordance with the Applicable Procedures from a Depository Participant
      directing the Note Registrar to credit or cause to be credited to another
      specified Depository Participant’s account a beneficial interest in the
      Regulation S Global Note in an amount equal to the Denomination of the
      beneficial interest

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

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

     

    (iii) Regulation
      S Global Note to Rule 144A Global Note.
      If the
      Note Owner of an interest in a Regulation S Global Note wishes at any time
      to
      transfer its beneficial interest in such Regulation S Global Note to a Person
      who wishes to take delivery thereof in the form of a beneficial interest in
      the
      Rule 144A Global Note, such holder may transfer or cause the transfer of such
      beneficial interest for an equivalent beneficial interest in the Rule 144A
      Global Note only upon compliance with all Applicable Procedures and the
      provisions of this Section 2.4(d)(iii). Upon receipt by the Note Registrar
      at
      its Corporate Trust Office of (A) written instructions given in accordance
      with
      the Applicable Procedures from a Depository Participant directing the Note
      Registrar to credit or cause to be credited to another specified Depository
      Participant’s account a beneficial interest in the Rule 144A Global Note in an
      amount equal to the Denomination of the beneficial interest in the Regulation
      S
      Global Note to be transferred, (B) a written order given in accordance with
      the
      Applicable Procedures containing information regarding the account of the
      Depository Participant to be credited with, and the account of the Depository
      Participant (or if such account is held for Euroclear or Clearstream, the
      Euroclear or Clearstream account, as the case may be) to be debited for such
      beneficial interest, and (C) with respect to a transfer of a beneficial interest
      in the Regulation S Global Note for a beneficial interest in the related Rule
      144A Global Note (i) during the Restricted Period, a certification in the form
      of Exhibit
      L
      hereto
      given by the Note Owner, or (ii) after the Restricted Period, an Investor
      Representation Letter in the form of Exhibit
      B
      hereto
      from the transferee to the effect that such transferee is a Qualified
      Institutional Buyer, the Note Registrar shall instruct the Depository to reduce
      the denomination of the Regulation S Global Note by the denomination of the
      beneficial interest in the Regulation S Global Note to be transferred, and,
      concurrently with such reduction, to increase the denomination of the Rule
      144A
      Global Note by the aggregate denomination of the beneficial interest in the
      Regulation S Global Note to be so transferred, and to credit or cause to be
      credited to the account of the Person specified in such instructions (who shall
      be a Depository Participant acting for or on behalf of Euroclear or Clearstream,
      or both, as the case may be) a beneficial interest in the Rule 144A Global
      Note
      having a denomination equal to the amount by which the denomination of the
      Regulation S Global Note was reduced upon such transfer. 

     

    (iv) Transfers
      Within Regulation S Global Notes During Restricted

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

    Period.
      If,
      during the Restricted Period, the Note Owner of an interest in a Regulation
      S
      Global Note wishes at any time to transfer its beneficial interest in such
      Note
      to a Person who wishes to take delivery thereof in the form of a Regulation
      S
      Global Note, such Note Owner may transfer or cause the transfer of such
      beneficial interest for an equivalent beneficial interest in such Regulation
      S
      Global Note only upon compliance with all Applicable Procedures and the
      provisions of this Section 2.4(d)(iv). Upon receipt by the Note Registrar at
      its
      Corporate Trust Office of (A) written instructions given in accordance with
      the
      Applicable Procedures from a Depository Participant directing the Note Registrar
      to credit or cause to be credited to another specified Depository Participant’s
      account a beneficial interest in such Regulation S Global Note in an amount
      equal to the denomination of the beneficial interest to be transferred, (B)
      a
      written order given in accordance with the Applicable Procedures containing
      information regarding the account of the Depository Participant to be credited
      with, and the account of the Depository Participant (or if such account is
      held
      for Euroclear or Clearstream, the Euroclear or Clearstream account, as the
      case
      may be) to be debited for, such beneficial interest and (C) a certification
      in
      the form of Exhibit
      I
      hereto
      given by the transferee, the Note Registrar shall instruct the Depository to
      credit or cause to be credited to the account of the Person specified in such
      instructions (who shall be a Depository Participant acting for or on behalf
      of
      Euroclear or Clearstream, or both, as the case may be) a beneficial interest
      in
      the Regulation S Global Note having a denomination equal to the amount specified
      in such instructions by which the account to be debited was reduced upon such
      transfer.

     

    (v) Transfer
      of Class G Notes.
      If the
      Note Owner of an interest in a Class G Note, whether such Class G Note is a
      Rule
      144A Global Note or a Regulation S Global Note, wishes at any time to transfer
      its beneficial interest in such Note to a Person who wishes to take delivery
      thereof, such Note Owner may transfer or cause the transfer of such beneficial
      interest in such Class G Note only upon compliance with, in addition to the
      applicable transfer restrictions set forth in Sections 2.4(d)(i) through (iv)
      above, the provisions of this Section 2.4(d)(v). In addition to the applicable
      transfer restrictions set forth above in Sections 2.4(d)(i) through (iv), the
      transferee of a Class G Note must deliver to the Note Registrar at its Corporate
      Trust Office a Class G Investor Representation Letter in the form of
Exhibit
      M
      hereto
      in which the transferee represents, warrants and covenants that: (A) it is
      a
“United States person” within the meaning of section 7701(a)(30) of the Internal
      Revenue Code of 1986, as amended (the “Code”) or is a non-United States person
      who will hold the Class G Notes in connection with the conduct of a trade or
      business in the United States and will deliver to the Issuer and Note Registrar
      a properly executed Form W-8ECI in connection with its acquisition of the Class
      G Notes and at such other times as reasonably required by the Issuer or Note
      Registrar or as required by law, (B) is purchasing the Class G Notes, in an
      authorized denomination, for its own account as the sole beneficial owner,
      (C)
      has not acquired, and will not transfer or offer to transfer, the Class G Notes
      through an “established securities market” or a “secondary market (or the
      substantial equivalent thereof)” within the meaning of section 7704(b) of the
      Code, (D) either it is not, for federal income tax purposes, a partnership,
      grantor trust, or subchapter S corporation (as defined in the Code) (any such
      entity, a “pass-through entity”) or it is a pass-through entity and less than 50
      percent of the value of each beneficial ownership interest in such pass-through
      entity (including for this purpose any contract or financial instrument the
      value of which is determined in whole or in part by reference to such
      pass-through entity (including the amount of distributions, the value of assets,
      or the result of operations)) is attributable to the Class G Notes, and (E)
      it
      agrees and understands that no acquisition or transfer of Class G Notes will
      be

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

    effective,
      and any such purported acquisition or transfer shall be void ab
      initio and
      shall
      not be recognized by the Issuer or the Note Registrar, if such acquisition
      or
      transfer would cause there to be more than 70
      beneficial
      owners
      of the Class G Notes.

     

    (e) (i)
      No
      resale or other transfer of any Note (other than a Class G Note), following
      its
      purchase from the Issuer by the Initial Purchaser may be made to any transferee
      unless (A) such transferee is not, and will not acquire such Note on behalf
      or
      with the assets of, any Benefit Plan or (B) no non-exempt “prohibited
      transaction” under ERISA or section 4975 of the Code or Similar Law will occur
      in connection with purchaser’s or such transferee’s acquisition or holding of
      such Note; (ii) no resale or other transfer of any Class G Note may be made
      to
      any transferee unless such transferee is not a Benefit Plan Investor; provided,
      however, that the Class G Notes may be transferred to
      an
      insurance company investor purchasing Class G Notes with assets from its general
      account that represents, warrants and covenants that at the time of acquisition
      and throughout its holding of the Class G Notes that (A) it is not a Controlling
      Person, (B) each of the accounts to which the Class G Notes are allocated by
      such insurance company investor is an insurance company general account (I)
      that
      is eligible for and meets the requirements of Prohibited Transaction Class
      Exemption 95-60 and (II) of which less than 25% of the assets are (or represent)
      assets of a Benefit Plan Investor, and (C) no non-exempt prohibited transaction
      under Section 406 of ERISA or Section 4975 of the Code or any Similar Law will
      occur in connection with the acquisition and holding of the Class G
      Notes;
      and
      (iii) 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), 2.4(d) and this
      Section 2.4(e).

     

    (f) 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.

     

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

     

    (h) 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.

     

    (i) The
      Notes
      represent the sole obligation of the Issuer payable from the Collateral and
      do
      not represent the obligations of the Originator, the Servicer, the Backup
      Servicer, the Indenture Trustee or the Custodian.

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

    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 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, 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 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 Holder has
      provided wire transfer instructions to the Indenture Trustee at least 5 Business
      Days prior to the applicable Payment Date, upon the request of a Holder, 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).

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

    (b) All
      reductions in the principal amount of a Note effected by payments of principal
      made on any Payment Date shall be binding upon all Holders of such Note and
      of
      any Note issued upon the registration of transfer thereof or in exchange
      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 Holder of any Note shall be deemed to agree by its acceptance of the
      same, to surrender such Note at the Corporate Trust Office within thirty (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 be overdue, and neither the
      Issuer, the Indenture Trustee, nor any agent of the Issuer or the Indenture
      Trustee shall be affected by notice to the contrary.

     

    Section
      2.8 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 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 5 Business Days before each Payment Date (and in
      all
      events in intervals of not more than 6 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
      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.

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

    Section
      2.11 Notice
      to
      Depository.

     

    Whenever
      notice or other communication to the Holders of Global Notes is acquired 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, (viii) to the
      extent the information relates to the U.S. Federal income tax treatment of
      the
      offering of the notes and any fact that may be relevant to understanding the
      tax
      treatment (the “Tax
      Structure”)
      and
      all materials of any kind (including opinions or other tax analyses) that are
      provided to the Issuer, the Initial Purchaser and each prospective investor
      relating to such tax treatment and Tax Structure or (ix) 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 shareholder is 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 as provided in this
      Indenture, the Trust Accounts, which accounts (other than the Lockbox Account)
      shall be Eligible Bank Accounts maintained at the Corporate Trust
      Office.

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

    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 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 Collateral 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
      Collateral 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) 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) below, each such Issuer Order may
      authorize the Indenture Trustee to make the specific Eligible Investments set
      forth therein and 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 shall specify.

     

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

     

    (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) above, 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 in the name of the Indenture Trustee, in each case
      in
      such manner as shall be necessary to maintain the identity of such investments
      part of the Collateral; and

     

    (ii) any
      certificate or other instrument evidencing such investment

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

    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
      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
      parties agree that each Trust Account (other than the Lockbox Account) is a
      “securities account” within the meaning of Article 8 of the UCC and that all
      property (including without limitation all uninvested funds, securities and
      other investment property) at any time deposited or carried in or credited
      to
      the Trust Accounts (other than the Lockbox Account) shall be treated as
“financial assets” within the meaning of Article 8 of the UCC. The Account
      Intermediary agrees that (A) it is a “securities intermediary” within the
      meaning of Article 8 of the UCC and will at all times act in such capacity
      with
      respect to the Trust Accounts and (B) the Indenture Trustee is the entitlement
      holder of the Trust Accounts (other than the Lockbox Account). The parties
      agree
      that the Account Intermediary shall follow all “entitlement orders” (as such
      term is defined in Article 8 of the UCC) originated by the Indenture Trustee
      with respect to the Trust Accounts (other than the Lockbox Account) and all
      financial assets deposited or carried in or credited to any Trust Account (other
      than the Lockbox Account). The parties agree that the “securities intermediary’s
      jurisdiction”, within the meaning of Section 8-110 of the UCC, with respect to
      security entitlements to financial assets credited to the Trust Accounts (other
      than the Lockbox Account) shall be the State of New York.

     

    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 “Silverleaf Timeshare Loan-Backed
      Notes, Series 2006-A―Collection
      Account, Wells Fargo Bank, National Association, as Indenture Trustee for the
      benefit of the Noteholders”. The Indenture Trustee on behalf of the Noteholders
      shall possess all right, title and interest in all funds on deposit from time
      to
      time in the Collection Account and in all proceeds thereof. The Collection
      Account shall be under the sole dominion and control of the Indenture Trustee
      for the benefit of the Noteholders as their interests appear in the Collateral.
      If, at any time, the Collection Account ceases to be an Eligible Bank Account,
      the Indenture Trustee shall within two (2) 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

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

    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 (1) were mistakenly deposited by the Lockbox Bank in the
      Collection Account, including, without limitation, amounts representing
      Misdirected Payments and (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 “Silverleaf Timeshare Loan-Backed Notes, Series
      2006-A―General
      Reserve Account, Wells Fargo Bank, National Association, as Indenture Trustee
      for the benefit of the Noteholders”. The Indenture Trustee on behalf of the
      Noteholders shall possess all right, title and interest in all funds on deposit
      from time to time in the 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 Collateral. If, at any time, the General Reserve Account ceases to be
      an
      Eligible Bank Account, the Indenture Trustee shall within two (2) 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) Deposits
      into General Reserve Account.
      On or
      before the Closing Date, the Issuer will cause the Indenture Trustee to deposit
      from proceeds of the sale of the Notes an amount equal to the General Reserve
      Account Initial Deposit. On or before each Transfer Date, the Indenture Trustee
      shall deposit in the General Reserve Account from amounts in the Prefunding
      Account to be released to the Issuer in respect of the Subsequent Timeshare
      Loans conveyed on such Transfer Date, 5.00% of the Aggregate Loan Balance of
      such Subsequent Timeshare Loans as of the related Subsequent Cut-Off Date.
      

     

    (ii) Withdrawals.
      Subject
      to Sections 3.2(b)(iii) and (iv) below, 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. 

     

    (iii) Sequential
      Pay Event or Event of Default.
      Upon
      the occurrence of a Sequential Pay Event, the Indenture Trustee shall withdraw
      all amounts on deposit in the

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

    General
      Reserve Account and shall deposit such amounts to the Collection Account for
      distribution in accordance with Section 3.4(d) hereof. Upon the occurrence
      of an
      Event of Default, 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 6.6 hereof.

     

    (iv) 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 is reduced to zero, the
      Indenture Trustee shall withdraw all amounts on deposit in the General Reserve
      Account and shall deposit such amounts to the Collection Account.

     

    (v) Amounts
      in Excess of General Reserve Account Required Balance.
      Except
      if a Sequential Pay Event or Event of Default shall have occurred and is
      continuing, on any Payment Date, 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
      Issuer.

     

    (c) Senior
      Reserve Account.
      The
      Issuer hereby directs and the Indenture Trustee hereby agrees to cause to be
      established and maintained an account (the “Senior
      Reserve Account”)
      for
      the benefit of the Noteholders. The Senior Reserve Account shall be an Eligible
      Bank Account initially established at the corporate trust department of the
      Indenture Trustee, bearing the following designation “Silverleaf Timeshare
      Loan-Backed Notes, Series 2006-A―Senior
      Reserve Account, Wells Fargo Bank National Association, as Indenture Trustee
      for
      the benefit of the Noteholders”. The Indenture Trustee on behalf of the
      Noteholders shall possess all right, title and interest in all funds on deposit
      from time to time
      in
      the Senior Reserve Account and in all proceeds thereof. The Senior 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 Collateral.
      If, at any time, the Senior Reserve Account ceases to be an Eligible Bank
      Account, the Indenture Trustee shall within two (2) Business Days establish
      a
      new Senior Reserve Account which shall be an Eligible Bank Account, transfer
      any
      cash and/or any investments to such new Senior Reserve Account and from the
      date
      such new Senior Reserve Account is established, it shall be the “Senior Reserve
      Account”. Amounts on deposit in the Senior Reserve Account shall be invested in
      accordance with Section 3.1 hereof. Deposits to the Senior Reserve Account
      shall
      be made in accordance with Section 3.4 hereof. Withdrawals and payments from
      the
      Senior Account shall be made in the following manner:

     

    (i) Withdrawal
      Upon a Sequential Pay Event or Event of Default.
      Upon
      the occurrence of a Sequential Pay Event, the Indenture Trustee shall withdraw
      all amounts on deposit in the Senior Reserve Account and shall deposit such
      amounts to the Collection Account for distribution to the Noteholders in
      accordance with Section 3.4(d) hereof. Upon the occurrence of an Event of
      Default, the Indenture Trustee shall withdraw all amounts on deposit in the
      Senior Reserve Account and shall deposit such amounts to the Collection Account
      for distribution in accordance with Section 6.6 hereof.

     

    (ii) Stated
      Maturity or Payment in Full.
      On the
      earlier to occur of the

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

    Stated
      Maturity and the Payment Date on which the Outstanding Note Balance of all
      Classes of Notes is reduced to zero, the Indenture Trustee shall withdraw all
      amounts on deposit in the Senior Reserve Account and shall deposit such amounts
      to the Collection Account.

     

    (iii) Amounts
      in Excess of Outstanding Note Balance.
      Except
      if a Sequential Pay Event or Event of Default shall have occurred and is
      continuing, on any Payment Date, if amounts on deposit in the Senior Reserve
      Account are greater than the Senior Reserve Account Cap (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 Senior Reserve Account Cap from the Senior Reserve Account and disburse
      such
      amounts to the Issuer. If during the six month period following the occurrence
      of a Senior Reserve Accumulation Event, no other Senior Reserve Accumulation
      Event or Cash Accumulation Event occurs, then, on the immediately following
      Payment Date, the Indenture Trustee shall, based on the Monthly Servicer Report,
      withdraw funds in excess of the Outstanding Note Balance of the Class A Notes
      and the Class B Notes (after giving effect to all other distributions and
      disbursements on such Payment Date) from the Senior Reserve Account and disburse
      such amounts to the Issuer. If the only Senior Reserve Accumulation Event to
      have occurred is the Senior Reserve Accumulation Event described in clause
      (iii)
      of the definition thereof, and as of the last day of the two immediately
      following calendar quarters, such Senior Reserve Accumulation Event does not
      exist and no other Senior Reserve Accumulation Event or Cash Accumulation Event
      occurs during such period, then, on the immediately following Payment Date,
      after giving effect to all other distributions and disbursements on such Payment
      Date, the Indenture Trustee shall withdraw all funds on deposit in the Senior
      Reserve Account and disburse such amounts to the Issuer.

     

    (d) 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 Indenture Trustee
      shall
      deposit in the Prefunding Account, from the proceeds from the sale of the Notes,
      an amount equal to the Prefunding Account 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
      “Silverleaf Timeshare Loan-Backed Notes, Series 2006-A―Prefunding
      Account, Wells Fargo Bank, National Association, as Indenture Trustee for the
      benefit of the Noteholders”. The Indenture Trustee on behalf of the Noteholders
      shall possess all right, title and interest in all funds on deposit from time
      to
      time in the 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 Collateral.
      If, at any time, the Prefunding Account ceases to be an Eligible Bank Account,
      the Indenture Trustee shall within two (2) 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:

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

    (i) Withdrawal
      of Timeshare Loan Acquisition Price.
      At or
      before 10:00 AM New York City time, on each Transfer Date for a transfer of
      Subsequent Timeshare Loans, upon satisfaction of the conditions specified in
      Section 4.2 hereof, the Indenture Trustee shall, in accordance with the written
      instructions of the Servicer, withdraw from the Prefunding Account an amount
      equal to the aggregate Timeshare Loan Acquisition Price of such Subsequent
      Timeshare Loans and shall distribute such amounts to, or at the direction of,
      the Issuer.

     

    (ii) Withdrawal
      of Investment Earnings.
      On each
      Payment Date during the Prefunding Period and on the Payment Date following
      the
      Prefunding Termination Date, the Indenture Trustee shall withdraw from the
      Prefunding Account and deposit in the Collection Account for distribution on
      such Payment Date in accordance with Section 3.4 hereof, the net investment
      earnings from funds on deposit in the Prefunding Account since the prior Payment
      Date or the Closing Date, as applicable.

     

    (iii) Withdrawal
      on Prefunding Termination Date.
      On the
      Prefunding Termination Date, the Indenture Trustee shall withdraw all amounts
      remaining in the Prefunding Account (other than investment earnings related
      thereto) and deposit such amounts into the Collection Account for distribution
      on the immediately following Payment Date as a distribution of principal in
      accordance with Section 3.4 hereof.

     

    (e) 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 Indenture Trustee
      shall
      deposit in the Capitalized Interest Account, from the proceeds from the sale
      of
      the Notes, an amount equal to the Capitalized Interest Amount. 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 “Silverleaf Timeshare Loan-Backed Notes,
      Series 2006-A―Capitalized Interest Account, Wells
      Fargo Bank, National Association, as Indenture Trustee for the benefit of the
      Noteholders”. The Indenture Trustee on behalf of the Noteholders shall possess
      all right, title and interest in all funds on deposit from time to time in
      the
      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
      Collateral. If, at any time, the Capitalized Interest Account ceases to be
      an
      Eligible Bank Account, the Indenture Trustee shall within two (2) 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
      shall
      be made in the following manner:

     

    (i) Withdrawal
      of Carrying Charges.
      At or
      before 11:00 AM New York City time, on the second Business Day prior to each
      Payment Date prior to the Prefunding Termination Date, the Servicer shall
      determine the Carrying Charges in respect of the upcoming Payment Date and
      provide notice thereof, and the direction referenced in the immediately
      following sentence, to the Indenture Trustee. The Indenture Trustee shall
      transfer into the Collection Account on each Payment Date, in accordance with
      the written direction of the

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

    Servicer,
      an amount equal to such Carrying Charges from the Capitalized Interest Account
      (solely to the extent of the amount then on deposit therein).

     

    (ii) Limitation
      on Withdrawals.
      No
      withdrawals may be made of funds in the Capitalized Interest Account except
      as
      provided in clause (i) above and clause (iii) below. Except as specifically
      provided, funds in the Capitalized Interest Account shall not be commingled
      with
      funds in any other account established with respect to the Notes or with any
      other monies.

     

    (iii) Withdrawal
      after the Prefunding Termination Date.
      On the
      Payment Date following the Prefunding Termination Date, the Indenture Trustee
      shall withdraw all amounts remaining in the Capitalized Interest Account and
      deposit such amounts in the Collection Account. Such amounts will be distributed
      on such Payment Date in accordance with Section 3.4 hereof. Upon distribution
      of
      the amounts specified in this clause (iii), the Indenture Trustee shall cause
      the Capitalized Interest Account to be closed.

     

    Section
      3.3 Reserved.

     

    Section
      3.4 Distributions.

     

    (a) So
      long
      as no Sequential Pay Event or Default Acceleration 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) incurred and not reimbursed in connection with its obligations
      and
      duties under the Indenture;

     

    (ii) to
      the
      Servicer, the Servicing Fee, plus any accrued and unpaid Servicing Fees with
      respect to prior Payment Dates and to the successor servicer, if any, the
      Servicer Termination Costs, if any (up to a cumulative total of
      $100,000);

     

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

     

    (iv) to
      the
      extent not paid by the Servicer, to the Custodian, the Custodian Fee, plus
      any
      accrued and unpaid Custodian Fees with respect to prior Payment
      Dates;

     

    (v) to
      the
      extent not paid by the Servicer, to the Lockbox Bank, the Lockbox Fee, plus
      any
      accrued and unpaid Lockbox Fees with respect to prior Payment
      Dates;

     

    (vi) to
      the
      Noteholders of each Class, the Interest Distribution Amount for such
      Class;

     

    (vii) to
      the
      Class A Noteholders, the Class A Principal Distribution

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

    Amount;

     

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

     

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

     

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

     

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

     

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

     

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

     

    (xiv) 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;

     

    (xv) if
      a
      Senior Reserve Accumulation Event shall have occurred, to the Senior Reserve
      Account, all remaining Available Funds until the amount on deposit in the Senior
      Reserve Account shall equal the Senior Reserve Account Cap;

     

    (xvi) if
      the
      amount on deposit in the General Reserve Account is less than the General
      Reserve Required Balance, to the General Reserve Account, any remaining
      Available Funds until amounts on deposit in the General Reserve Account shall
      equal the General Reserve Account Required Balance;

     

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

     

    (xviii) to
      the
      Issuer, any remaining Available Funds.

     

    (b) Reserved.

     

    (c) Reserved.

     

    (d) Upon
      the
      occurrence of a Sequential Pay Event or pursuant to Section 6.6(a) after the
      occurrence of a Payment Default Event, distributions shall be made in the
      following order of priority:

     

    (i) to
      the
      Indenture Trustee, the Indenture Trustee Fee, plus any

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

    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) incurred and not reimbursed in connection with its obligations
      and
      duties under the Indenture;

     

    (ii) to
      the
      Servicer, the Servicing Fee, plus any accrued and unpaid Servicing Fees with
      respect to prior Payment Dates and to the successor servicer, if any, the
      Servicer Termination Costs, if any (up to a cumulative total of
      $100,000);

     

    (iii) to
      the
      Backup Servicer, the Backup Servicing Fee, plus any unpaid Backup Servicing
      Fees
      with respect to prior Payment Dates; 

     

    (iv) to
      the
      extent not paid by the Servicer, to the Custodian, the Custodian Fee, plus
      any
      accrued and unpaid Custodian Fees with respect to prior Payment
      Dates;

     

    (v) to
      the
      extent not paid by the Servicer, to the Lockbox Bank, the Lockbox Fee, plus
      any
      accrued and unpaid Lockbox Fees from prior Payment Dates;

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

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

     

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

     

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

     

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

     

    (xx) 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;

     

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

     

    (xxii) to
      the
      Issuer, any remaining Available Funds.

     

    Section
      3.5 Reports
      to Noteholders.

     

    On
      each
      Payment Date, the Indenture Trustee shall make available via the Indenture
      Trustee’s internet website the Monthly Servicer Report to the Initial Purchaser,
      the Noteholders, the Rating Agency, the Backup Servicer 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. The Indenture Trustee will make no representation or
      warranties as to the accuracy or completeness of such documents and will assume
      no responsibility therefore. 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 each 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 Sections 4.5, 5.3(g), 5.5, 5.7, 5.8 and 11.1 of 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 Senior Reserve
      Account, the Prefunding Account and the Capitalized Interest
      Account.

     

    The
      Indenture Trustee’s internet website shall be initially located at “www.CTSLink.com”
or
      at
      another address as shall be specified by the Indenture Trustee from time to
      time
      in writing to the Issuer, the Servicer, the Noteholders and the Rating Agency.
      For assistance with this service, Noteholders may call the customer service
      desk
      at (301) 815-6600. 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 Agreement.

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

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

     

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

     

    Section
      3.6 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
      COLLATERAL

     

    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
      included in the Collateral. The Indenture Trustee shall hold the Collateral
      in
      trust for the benefit of the Noteholders, subject to the terms and provisions
      hereof. In connection with the conveyance of the Collateral to the Indenture
      Trustee, the Issuer has delivered or has caused the Originator to deliver (i)
      to
      the Custodian, the Timeshare Loan Files, and (ii) to the Servicer the Timeshare
      Loan Servicing Files for each Timeshare Loan conveyed on the Closing Date.
      On or
      prior to each Transfer Date, the Issuer will deliver or cause to be delivered
      (i) to the Custodian, the Timeshare Loan Files, and (ii) to the Servicer, the
      Timeshare Loan Servicing Files, for each Qualified Substitute Timeshare Loan
      and
      Subsequent Timeshare Loan to be conveyed on such

    
      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

    

     

    Transfer
      Date.

     

    (b) The
      Indenture Trustee shall perform its duties under this Section 4.1 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 service hereunder or
      with respect to any particular transaction; or

     

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

     

    Section
      4.2 Subsequent
      Timeshare Loans.

     

    (a) On
      each
      Transfer Date during the Prefunding Period on which Subsequent Timeshare Loans
      are pledged by the Issuer to the Indenture Trustee hereunder, subject to the
      satisfaction of the following conditions, the Indenture Trustee shall transfer
      on such Transfer Date, upon the order of the Issuer, from the Prefunding Account
      to an account designated by the Issuer, the Timeshare Loan Acquisition Price
      for
      each such Subsequent Timeshare Loan. 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:

     

    (i) the
      Issuer shall have delivered to the Indenture Trustee a duly executed Subsequent
      Transfer Agreement, substantially in the form of Exhibit B to the Transfer
      Agreement, including a list of Subsequent Timeshare Loans attached thereto,
      and
      confirming the satisfaction of each condition precedent specified in the
      Transfer Agreement, not less than three (3) Business Days prior to such Transfer
      Date;

     

    (ii) 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 Loans;

     

    (iii) 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;

     

    (iv) the
      Prefunding Termination Date shall not have occurred; and

     

    (v) no
      Responsible Officer of the Indenture Trustee has actual knowledge or has
      actually received notice that any conditions to such transfer have not been
      fulfilled and the Indenture Trustee shall have received such other documents,
      opinions,

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

    certificates
      and instruments as the Indenture Trustee may request.

     

    (b) No
      transfer or pledge of a Subsequent Timeshare Loan shall be effective unless
      the
      (1) the Timeshare Loan Files for such Subsequent Timeshare Loan have been
      delivered to the Custodian and (2) the Timeshare Loan Servicing Files for such
      Subsequent Timeshare Loan have been delivered to the Servicer.

     

    Section
      4.3 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, to 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, the Indenture 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 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 such Timeshare Loan and the other Timeshare Loans constituting
      the Collateral have been assigned to the Indenture Trustee on behalf of the
      Noteholders.

     

    Section
      4.4 Further
      Action Evidencing Assignments.

     

    (a) The
      Issuer and the Indenture Trustee each agrees that, from time to time, it shall
      promptly execute and deliver all further instruments and documents, and take
      all
      further action, that may be necessary or appropriate, or that the Holders
      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 hereto 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 Collateral, 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
      which 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

      
        
          
          

        

        
          30

          
            

          

        

        
          
          

        

      

    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
      thirty (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 all documents including, but not limited to, Assignments
      of Mortgage, UCC-l 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 all documents on behalf of the Servicer as may be
      necessary or desirable to effectuate the foregoing; provided, however, that
      such
      grant shall not create a duty on the part of the Indenture Trustee or the
      Servicer to file, prepare, record or monitor, or any responsibility for the
      contents or adequacy of, any such documents.

     

    Section
      4.5 Substitution
      and Repurchase of Timeshare Loans.

     

    (a) Mandatory
      Substitution and Repurchase of Timeshare Loans for Breach of Representation
      or
      Warranty.
      If at
      any time, any party hereto obtains knowledge, discovers, or is notified by
      any
      other party hereto, that any of the representations and warranties of the
      Originator in the Transfer Agreement or the Servicer in the Loan 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 Originator,
      and the Servicer. In the event any such representation or warranty of the
      Originator or the Servicer, as applicable, is incorrect and materially and
      adversely affects the value of a Timeshare Loan or the interests of the
      Noteholders therein, then the Issuer and the Indenture Trustee shall require
      the
      Originator or the Servicer, as applicable, within 60 days after the date it
      is
      first notified, 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 (1) if the breach
      relates to a particular Timeshare Loan and is not cured in all material respects
      (such Timeshare Loan, a “Defective Timeshare Loan”), either (a) purchase the
      Issuer’s interest in such Defective Timeshare Loan at the Repurchase Price or
      (b) provide one or more Qualified Substitute Timeshare Loans and pay the
      Substitution Shortfall Amounts, if any. The Indenture Trustee is hereby
      appointed attorney-in-fact, which appointment is coupled with an interest and
      is
      therefore irrevocable, to act on behalf and in the name of the Issuer to enforce
      the Originator’s and the Servicer’s purchase or substitution obligations if the
      Originator or the Servicer, as applicable, has not complied with its purchase
      or
      substitution obligations under the Transfer Agreement or the Loan Sale
      Agreement, as applicable, within 30 days after the end of the aforementioned
      60-day period.

     

    (b) Prepayment
      of Upgraded Timeshare Loans.
      The
      Originator, pursuant to the Transfer Agreement, with respect to any Upgraded
      Timeshare Loan, on any date, shall prepay such Upgraded Timeshare loan on behalf
      of the related Obligor by either depositing the related Repurchase Price in
      the
      Collection Account as set forth in Section 4.5(e) below, or by providing one
      or
      more Qualified Substitute Timeshare Loans and paying the Substitution Shortfall
      Amounts, if any; provided, however, that the Originator’s option to substitute a
      Qualified Substitute Timeshare Loan for the Upgraded Timeshare Loan is limited
      on any date to

      
        
          
          

        

        
          31

          
            

          

        

        
          
          

        

      

    (x)
      20%
      of the Cut-Off Date Aggregate Loan Balance less (y) the aggregate Loan Balances
      of the Upgraded Timeshare Loans previously substituted by the Originator on
      the
      related Transfer Dates.

     

    (c) Optional
      Purchase of Defaulted Timeshare Loans.
      Pursuant to the Transfer Agreement, with respect to any Defaulted Timeshare
      Loans, on any date, the Originator shall have the option, but not the
      obligation, to purchase the Defaulted Timeshare Loan at the Default Purchase
      Price for such Defaulted Timeshare Loan; provided,
      however,
      that
      the option to purchase a Defaulted Timeshare Loan is limited on any date to
      the
      Optional Purchase Limit. If the Originator shall purchase Defaulted Timeshare
      Loans as provided herein, the Originator shall deposit the related Default
      Purchase Price in the Collection Account as set forth in Section 4.5(e) below.
      The Originator may irrevocably waive its option to purchase 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. The holder or holders of Notes representing at least 66-2/3% of the
      Adjusted Note Balance may at any time direct the Indenture Trustee, in
      connection with any subsequent purchases of Defaulted Timeshare Loans by the
      Originator to require the Originator to conduct a public auction in respect
      of
      any such Defaulted Timeshare Loan. The Originator may bid on any such Defaulted
      Timeshare Loan during such auction, provided that no such bid may be lower
      than
      fifteen percent (15%) of the original acquisition price paid for the Timeshare
      Property by the Obligor under such Defaulted Timeshare Loan. Publication of
      notice of such auction in a newspaper published daily in Dallas, Texas, shall
      be
      sufficient notice of such auction.

     

    (d) Optional
      Purchase of Force Majeure Loans.
      If a
      Force Majeure Event occurs at a Resort, the Originator shall have the option,
      but not the obligation, to purchase the related Force Majeure Loans, so long
      as
      such Timeshare Loans have not become Defaulted Timeshare Loans. The Originator
      will have the option to purchase a Force Majeure Loan at the Force Majeure
      Purchase Price; provided, however, that (i) the Originator’s
      option
      to purchase a Force Majeure Loan is limited on any date to the Force Majeure
      Purchase Limit, and (ii) the Originator shall have the right to exercise such
      purchase option for a Force Majeure Loan only if the related Force Majeure
      Purchase Price equals or exceeds the Loan Balance of such Force Majeure Loan
      as
      of the date of such purchase, plus all accrued and unpaid interest thereon.
      If
      the Originator shall purchase Force Majeure Loans as provided herein, the
      Originator shall deposit the related Force Majeure Purchase Price in the
      Collection Account as set forth in Section 4.4(e) below.

     

    (e) Payment
      of Repurchase Prices and Substitution Shortfall Amounts.
      The
      Issuer and the Indenture Trustee shall direct that the Originator or the
      Servicer, as applicable, remit or cause to be remitted all amounts in respect
      of
      Repurchase Prices, Default Purchase Prices, Force Majeure Purchase Prices and
      Substitution Shortfall Amounts payable during the related Due Period in
      immediately available funds to the Indenture Trustee for deposit in the
      Collection Account.

     

    (f) Schedule
      of Timeshare Loans.
      The
      Issuer and Indenture Trustee shall direct the Originator to provide or cause
      to
      be provided to the Indenture Trustee on any date on which a Timeshare Loan
      is
      purchased, repurchased, substituted, or otherwise added (i.e. in the case of
      Subsequent Timeshare Loans) with an electronic supplement to the Schedule
      of

      
        
          
          

        

        
          32

          
            

          

        

        
          
          

        

      

    Timeshare
      Loans reflecting the removal, substitution and/or other addition of Timeshare
      Loans and subjecting any Qualified Substitute Timeshare Loans and Subsequent
      Timeshare Loans to the provisions of the Transaction Documents.

     

    (g) 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 of the Originator
      or the Servicer, as applicable, indicating that (1) the new Timeshare Loan
      meets
      all the criteria of the definition of “Qualified Substitute Timeshare Loan”, (2)
      the Timeshare Loan Files for such Qualified Substitute Timeshare Loan have
      been
      delivered to the Custodian, and (3) the Timeshare Loan Servicing Files for
      such
      Qualified Substitute Timeshare Loan have been delivered to the
      Servicer.

     

    (h) Qualified
      Substitute Timeshare Loans.
      With
      respect to each Transfer Date, the Issuer and the Indenture Trustee shall direct
      the Originator or the Servicer, as applicable 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.

     

    (i) Subsequent
      Timeshare Loans.
      With
      respect to each Transfer Date, the Issuer and the Indenture Trustee shall direct
      the Originator to deliver or cause the delivery of the Timeshare Loan Files
      of
      the related Subsequent Timeshare Loans to the Custodian in accordance with
      the
      provisions of this Indenture and the Custodial Agreement.

     

    Section
      4.6 Release
      of Lien.

     

    (a) The
      Lien
      of the Indenture shall be automatically released with respect to any Timeshare
      Loan purchased, repurchased or substituted under Section 4.5 hereof, (i) upon
      satisfaction of each of the applicable provisions of Section 4.5 hereof, (ii)
      in
      the case of any purchase or repurchase, after a payment by the Originator or
      the
      Servicer, as applicable, of the Repurchase Price or Default Purchase Price,
      as
      applicable, of the Timeshare Loan, and (iii) in the case of any substitution,
      after payment by the Originator or the Servicer, as applicable, of the
      applicable Substitution Shortfall Amounts, if any, pursuant to Section 4.5
      hereof.

     

    (b) The
      Lien
      of the Indenture shall be automatically released with respect to any Timeshare
      Loan which has been paid in full.

     

    (c) Reserved.

     

    (d) In
      connection with (a) and (b) above, the Issuer and Indenture Trustee will execute
      and deliver such releases, endorsements and assignments as are provided to
      it by
      the Originator or Silverleaf, in its capacity as the Servicer, as applicable,
      in
      each case, without recourse, representation or warranty, as shall be necessary
      to vest in the Originator or Silverleaf, in its capacity as the Servicer, as
      applicable, or its designee (or to evidence the vesting in such Person of),
      the
      legal and beneficial ownership of each Timeshare Loan released pursuant to
      this
      Section 4.6. The Servicer shall deliver a Request for Release to the Custodian
      with respect to the related Timeshare Loan Files and Timeshare Loan Servicing
      Files released pursuant to this Section 4.6, and such files shall be transferred
      to the Originator or Silverleaf, in its capacity as the Servicer, as applicable,
      or its designee.

      
        
          
          

        

        
          33

          
            

          

        

        
          
          

        

      

    Section
      4.7 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 $10,000,000,
      shall be qualified to do business in the jurisdiction, in which it holds any
      Timeshare Loan File and shall not be the Issuer or an Affiliate of the Issuer.
      The initial Custodian shall be Wells Fargo Bank, National Association. 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
      4.8 Sale
      of
      Timeshare Loans.

     

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

     

    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 Silverleaf 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 Wells Fargo Bank, National Association 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, reflect
      all
      payments made under each Timeshare Loan and direct each Obligor to timely make
      all payments in respect of his or her Timeshare Loan to the Lockbox Account
      maintained at the Lockbox Bank.

     

    (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 Timeshare Loans
      after

      
        
          
          

        

        
          34

          
            

          

        

        
          
          

        

      

    the
      Initial Cut-Off Date (without deduction for any Liquidation
      Expenses).

     

    (c) Subject
      to subsection (d) below, on each Monday, Wednesday, Friday (or if such day
      is
      not a Business Day, then on the next Business Day) and the last Business Day
      of
      that related calendar month, all collections in respect of the Timeshare Loans
      on deposit in the Lockbox Account will be remitted to the Collection
      Account.

     

    (d) Liquidation
      Expenses shall be reimbursed 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 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 any other collections
      relating to the Collateral, it shall deposit such amounts to the Collection
      Account within two (2) 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 discretion of the
      Servicer for the purpose of collecting and transferring to the Indenture Trustee
      for deposit into the Collection Account all payments received by the Servicer
      or
      remitted to the Lockbox 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;

      
        
          
          

        

        
          35

          
            

          

        

        
          
          

        

      

    (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(b)
      below;

     

    (viii) use
      reasonable best efforts to enforce the purchase and substitution obligations
      of
      the Originator under the Transfer Agreement;

     

    (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 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
      5% of the Cut-Off Date Aggregate Loan 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
      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) deliver
      such information and data to the Backup Servicer as is required under the Backup
      Servicing Agreement; 

     

    (xiii) deliver
      any new or amended ACH Forms executed by an Obligor to the Custodian to be
      held
      as part of the related Timeshare Loan File; and

     

    (xiv) (A)
      to
      cause each Resort to be insured in the event of fire, earthquake, or other
      casualty for the full replacement value thereof and if the Resort is located
      in

      
        
          
          

        

        
          36

          
            

          

        

        
          
          

        

      

    a
      designated flood plain, to maintain flood insurance in an amount not less than
      the maximum level available under the National Flood Insurance Act of 1968,
      as
      amended; (B) in respect of each Resort, to maintain general liability insurance
      in such amounts generally acceptable in the industry; (C) to cause each Resort’s
      insurance policies to remain in full force and effect with a generally
      acceptable insurance carrier; and (D) to monitor the maintenance of the
      insurance coverage described in (A), (B), and (C) above with respect to each
      Resort and promptly obtain notice and otherwise acquire Knowledge of any lapse,
      cessation, decrease or other change in any such insurance coverage.

     

    (b) In
      the
      event that a Defaulted Timeshare Loan is not or cannot be released from the
      Lien
      of the Indenture pursuant to Section 4.6 hereof, the Servicer shall, in
      accordance with the Servicing Standard, promptly institute collection
      procedures, which may include, but are not limited to, cancellation, forfeiture,
      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
      promptly attempt to liquidate such foreclosure Property. The Servicer shall
      select the liquidation option reasonably anticipated to produce the highest
      Net
      Liquidation Proceeds, giving effect to the gross price obtainable, broker’s
      commissions, foreclosure costs, fees and marketing expenses and other factors.
      The Servicer shall be entitled to reimbursement of Liquidation Expenses out
      of
      Liquidation Proceeds. Any Liquidation Expenses later recovered by the Servicer
      shall be deposited by the Servicer in the Collection Account in accordance
      with
      Section 5.2(c) and (d) hereof.

     

    (i) To
      the
      extent that the Originator or an Affiliate thereof is selected to remarket
      a
      Foreclosure Property, the Servicer shall cause the Originator or Affiliate
      thereof to agree that it will remarket such Foreclosure Property in accordance
      with the Servicing Standard.

     

    (ii) The
      Servicer (if Silverleaf or its Affiliate is acting as Servicer) on behalf of
      the
      Issuer and the Indenture Trustee shall take all necessary steps to have the
      record title of the applicable Timeshare Properties subject to such Defaulted
      Timeshare Loans continue to be held by the Indenture Trustee. In such event,
      the
      Servicer shall direct the Indenture Trustee, directly or through its agents
      to
      exercise the remedies provided for in the Oak N’ Spruce Trust Agreement, in the
      Mortgage Note or in the other documents with respect to such Defaulted Timeshare
      Loans and the Obligors thereunder, and the related Timeshare Property shall
      be
      remarketed with the purpose of obtaining the maximum Net Liquidation Proceeds
      in
      respect of such Defaulted Timeshare Loans.

     

    (iii) The
      Servicer shall reserve its rights under the Oak N’ Spruce Trust Agreement and/or
      the applicable Mortgages to obtain, at any time, record title and all beneficial
      interests in respect of the Timeshare Properties related to Defaulted Timeshare
      Loans. All actions taken by the Servicer in respect of any Defaulted Timeshare
      Loans shall, at all times, be carried out in a manner such that none of the
      Issuer, the Indenture Trustee or the Noteholders shall, under applicable law,
      be
      deemed to be the developer or declarant of any Resort.

     

    (iv) The
      Servicer may elect to liquidate at a public or private sale any Defaulted
      Timeshare Loans or related Timeshare Properties foreclosed upon or otherwise
      reacquired on behalf of the Indenture Trustee from the obligors of the Defaulted
      Timeshare Loans. In the event the Servicer elects to so liquidate Defaulted
      Timeshare Loans or the related

      
        
          
          

        

        
          37

          
            

          

        

        
          
          

        

      

    Timeshare
      Properties securing these Defaulted Timeshare Loans, the Originator may bid
      on
      such Defaulted Timeshare Loans or related Timeshare Properties so long as the
      Originator pays an amount at least equal to the net fair market value of each
      related Timeshare Property, as determined by the Originator in its commercially
      reasonable judgment, which shall in no event be less than fifteen percent (15%)
      of the original acquisition price paid for the Timeshare Property by the Obligor
      under the Defaulted Timeshare Loan.

     

    (v) The
      Servicer agrees that it shall require that any Liquidation Proceeds be in the
      form of cash only.

     

    (c) The
      Servicer may not sell any of the Defaulted Timeshare Loans that are included
      in
      the Collateral except as specifically permitted by this Indenture.

     

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

     

    (e) For
      so
      long as Silverleaf or any of its Affiliates controls the Association for a
      Resort, and Silverleaf or an Affiliate thereof is the manager, the related
      management contract may not be amended or modified if such amendment or
      modification is reasonably likely to have a material adverse affect on the
      interests of the Noteholder, except with the prior written consent of the
      Holders 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, or after
      obtaining a Rating Agency Confirmation.

     

    (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 Silverleaf or
      one
      of its Affiliates which materially adversely affects the Issuer’s interest in
      such Timeshare Loan, Silverleaf shall, within the earlier to occur of ten (10)
      Business Days after such attachment or the respective lienholders’ action to
      foreclose on such lien, either (a) cause such Lien to be released of record,
      (b)
      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 (c) provide the Indenture Trustee with
      such other security as the Indenture Trustee may reasonably
      require.

     

    (g) The
      Servicer shall: (a) promptly notify the Indenture Trustee of (i) any claim,
      action or proceeding which may be reasonably expected to have a material adverse
      effect on the Collateral, or any material part thereof, and (ii) 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
      Collateral or the Servicer’s ability to service the same; (b) 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, petition or proceeding which would have a
      material adverse effect on the Timeshare Loans or the Servicer’s ability to
      service the same; and (c) 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

      
        
          
          

        

        
          38

          
            

          

        

        
          
          

        

      

    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 (for so long as
      Silverleaf or any Affiliate thereof is the Servicer hereunder, otherwise
      Silverleaf in its individual capacity) shall not, and shall not permit the
      Managing Entity or the Orlando Breeze Resort Club 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 Managing Entity and the
      Orlando Breeze Resort Club, to use commercially reasonable efforts to keep
      the
      Reservation System operational, not to dispose of the same and to allow the
      members of each Association the use of, and access to, the Reservation System
      in
      accordance with the terms of the Management Agreement and the Orlando Breeze
      Management Agreement, as applicable.

     

    (i) For
      so
      long as Silverleaf or any Affiliate thereof is the Servicer, it 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 holders representing
      at
      least 66-2/3% of the Adjusted Note Balance of each Class of Notes if such
      amendment is reasonably likely to have material adverse affect on the interests
      of the Noteholders or after obtaining a Rating Agency Confirmation) and with
      the
      terms of the Timeshare Loans.

     

    (j) For
      so
      long as Silverleaf or any Affiliate thereof is the Servicer, it shall provide
      a
      minimum of 10 days’ prior notice to the Rating Agency of any purchase or
      acquisition by the Servicer of (i) another entity (or the stock, membership
      interests, or other similar interests therein) or (ii) any resort or other
      property, if the related purchase price exceeds $5 million. 

     

    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 five (5)
      Business Days;

     

    (ii) any
      failure by the Servicer to provide any required report within five (5) Business
      Days of when such report is required to be delivered hereunder;

     

    (iii) any
      failure by the Servicer to observe or perform in any material respect the
      covenant set forth in Section 5.3(a)(xiv) hereof, which failure in respect
      of
      clause (A), (B) or (C) of such Section 5.3(a)(xiv) is not remedied within two
      (2) Business Days after the Servicer first acquires Knowledge
      thereof;

     

    (iv) any
      failure by the Servicer to observe or perform in any material respect any other
      covenant or agreement in any Transaction Document to which it is a party (other
      than as set forth in clause (iii) above), 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

      
        
          
          

        

        
          39

          
            

          

        

        
          
          

        

      

    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) 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;

     

    (vi) 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;

     

    (vii) 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;
      

     

    (viii) a
      Sequential Pay Event that remains uncured for one Due Period;

     

    (ix) if
      Silverleaf is the Servicer, it fails to maintain a Leverage Ratio of not greater
      than 6.0 to 1.0; or

     

    (x) if
      Silverleaf is the Servicer, a change occurs of more than 50% of the executive
      management of the Servicer as described in Exhibit
      H
      hereto,
      unless Silverleaf provides written certification to the Indenture Trustee (which
      the Indenture Trustee shall promptly forward to the Noteholders) within 30
      days
      after such change, certifying that such executive management personnel have
      been
      replaced, and setting forth a description of those

      
        
          
          

        

        
          40

          
            

          

        

        
          
          

        

      

    persons’
      experience, ability and reputation, and the Indenture Trustee shall not have
      received an objection to such replacement personnel from holders of Notes of
      at
      least 50% of the Adjusted Note Balance, within 15 Business Days after sending
      such certificate to the Noteholders.

     

    If
      any
      Servicer Event of Default shall have occurred and not been waived hereunder,
      the
      Indenture Trustee may, and upon notice from Holders representing at least
      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.

     

    Unless
      consented to by the Holders 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 terminate the Backup Servicing
      Agreement and 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 (5) 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 the Servicer shall cooperate with the Indenture Trustee in
      affecting 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 (1) Business
      Day to the Indenture Trustee or its designee for administration by it of all
      cash amounts which shall at the time or thereafter be 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
      change to the Servicing Fee may be made unless the Indenture Trustee shall
      have
      received the written consent of Holders 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 Silverleaf 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.

      
        
          
          

        

        
          41

          
            

          

        

        
          
          

        

      

    The
      successor servicer shall be entitled to be reimbursed by the Servicer, (or
      from
      the Collateral to the extent set forth in Section 3.4(a)(ii), 3.4(d)(ii) or
      Section 6.6(a)(ii) 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.

     

    Section
      5.5 Accountings;
      Statements and Reports.

     

    (a) Monthly
      Servicer Report.
      Not
      later than four (4) Business Days prior to each Payment Date, the Servicer
      shall
      deliver to the Issuer, the Indenture Trustee, the Rating Agency, the Backup
      Servicer 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

      
        
          
          

        

        
          42

          
            

          

        

        
          
          

        

      

    reasonably
      requested by the Issuer, the Indenture Trustee or the Initial Purchaser in
      writing at least five (5) Business Days prior to the related 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 April 30 of
      each year commencing in 2007: (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
      officers 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 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 April 30 of each year commencing in 2007, the Servicer (unless
      the
      Indenture Trustee is 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, (5) on the basis of such examinations and comparison, 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 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

      
        
          
          

        

        
          43

          
            

          

        

        
          
          

        

      

    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
      involve the possibility of materially and adversely 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.

      
        
          
          

        

        
          44

          
            

          

        

        
          
          

        

      

    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 part of the
      Collateral) at the address specified in Section 13.3 hereof or, upon fifteen
      (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 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 (10) Business Days’ prior written notice
      to the Indenture Trustee.

     

    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

      
        
          
          

        

        
          45

          
            

          

        

        
          
          

        

      

    situated;
      (ii) is a U.S. Person, and (iii) delivers to the Indenture Trustee (1) 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 (2) 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 the 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 such terms and conditions as the Servicer may reasonably agree and as
      are
      not inconsistent with this Indenture. 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. The Servicer shall
      be solely responsible for any sub-servicing fees due and payable to such
      sub-servicer.

     

    (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 Holders 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, 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 and (ii)
      the
      ratings of the Notes will not be qualified, downgraded or withdrawn (as
      evidenced by a letter from each 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) hereunder.

     

    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 Agreement 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.

      
        
          
          

        

        
          46

          
            

          

        

        
          
          

        

      

    Section
      5.11 Fees
      and
      Expenses.

     

    As
      compensation for the performance of its obligations under this Indenture, the
      Servicer shall be entitled to receive on each Payment Date, from amounts on
      deposit in the Collection Account and in the priorities described in Section
      3.4
      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
      (10) 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 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 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.

     

    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 via electronic delivery
      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, the Backup
      Servicer, the Custodian and the Noteholders from and against any and all actual
      damages (excluding economic losses related to the collectibility of any
      Timeshare Loan), claims, reasonable attorneys’ fees and related costs,
      judgments, and any other costs, fees and expenses that each may sustain because
      of the failure of the Servicer to service the Timeshare Loans in accordance
      with
      the Servicing Standard or otherwise perform its obligations and
      duties

      
        
          
          

        

        
          47

          
            

          

        

        
          
          

        

      

    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; provided, however, the Servicer shall not be obligated to indemnify
      any party hereunder to the extent the related liability results from such
      party’s gross negligence or willful misconduct. 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 herewith, including reasonable counsel fees,
      and promptly pay, discharge and satisfy any judgment or decree which may be
      entered against it. In addition, so long as Silverleaf or any Affiliate thereof
      acts as Servicer, the Servicer hereby agrees to indemnify the Indenture Trustee
      and its officers, directors, employees and agents for, and to hold them harmless
      against, any loss, liability or expense, including any loss, liability or
      expense directly or indirectly incurred (regardless of negligence or bad faith
      on the part of the Indenture Trustee or the Servicer) to the extent that such
      loss, liability or expense arose of out of or was imposed on the Indenture
      Trustee as a result of any penalty or other cost imposed by the Internal Revenue
      Service or other taxing authority. 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.

     

    (a) Backup
      Servicing Agreement.
      The
      Issuer, the Indenture Trustee, the Servicer 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 that the Backup Servicing Agreement
      will be terminated. The Backup Servicer agrees to cooperate in good faith with
      any successor Servicer to effect a transition of the servicing obligations
      by
      the Servicer and the Backup Servicer to any successor Servicer. 

     

    (c) Reserved.

     

    (d) Backup
      Servicing Fee.
      The
      Backup Servicer shall receive its Backup Servicing Fee in accordance with
      Sections 3.4 or 6.6, as applicable. 

     

    (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 Wells Fargo Bank, National Association as Backup
      Servicer, Wells Fargo Bank, National Association 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 prior to the
      termination or resignation of Silverleaf as the Servicer hereunder, the
      Indenture

      
        
          
          

        

        
          48

          
            

          

        

        
          
          

        

      

    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 Reserved.

     

    Section
      5.18 Recordation.

     

    As
      soon
      as practicable after the Closing Date or Transfer Date, as applicable (but
      in no
      event later than 10 Business Days or 60 days with respect to Timeshare Loans
      for
      which the original Mortgages are still at the related recording office) after
      such date, the Servicer shall cause all Assignments of Mortgage in respect
      of
      the Timeshare Loans to be recorded in 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 five (5) Business
      Days; or

     

    (b) failure
      by Silverleaf, in its capacity as the Originator to purchase any Defective
      Timeshare Loan or substitute a Qualified Substitute Loan for a Defective
      Timeshare Loan within the specified time period; or

     

    (c) a
      non-monetary default in the performance, or breach, of any covenant of the
      Issuer or the General Partner 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 or the General
      Partner, as applicable, 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 or the General Partner, as applicable;
      or

     

    (d) if
      any
      representation or warranty of the Issuer or the General Partner, as applicable,
      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

      
        
          
          

        

        
          49

          
            

          

        

        
          
          

        

      

    the
      Issuer or the General Partner, as applicable, 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 or the General Partner, as
      applicable, first acquiring Knowledge thereof, and (y) the Indenture Trustee’s
      giving written notice thereof to the Issuer or the General Partner, as
      applicable; or

     

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

     

    (f) the
      commencement by the Issuer or the General Partner 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 or the General Partner
      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 the
      Issuer or the General Partner of a petition or answer or consent seeking
      reorganization or relief under any applicable federal or state law, or the
      consent by the Issuer or the General Partner 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 the
      General Partner or of any substantial part of their respective property, or
      the
      making by the Issuer or the General Partner of an assignment for the benefit
      of
      creditors, or the Issuer’s or the General Partner’s failure to pay their
      respective debts generally as they become due, or the taking of corporate action
      by the Issuer or the General Partner in furtherance of any such action;
      or

     

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

     

    (h) the
      impairment of the validity of any security interest of the Indenture Trustee
      in
      the Collateral in any material respect, except as expressly permitted hereunder,
      or the creation of any material encumbrance on or with respect to the Collateral
      or any portion thereof not otherwise permitted, which is not stayed or released
      within ten (10) days of the Issuer having Knowledge of its creation;
      or

     

    (i) (A)
      the
      occurrence and continuance of the Servicer Event of Default set forth under
      Section 5.4(a)(iii) hereof or (B) the occurrence and continuance of a Servicer
      Event of Default (other than as described in the immediately preceding clause
      (A), Section 5.4(a)(ix) and Section 5.4(a)(x) hereof) that is uncured for two
      consecutive Due Periods; or

      
        
          
          

        

        
          50

          
            

          

        

        
          
          

        

      

    (j) on
      any
      Payment Date, after application of all Available Funds, the sum of the Aggregate
      Loan Balance and the sum of the amounts on deposit in the Reserve Account and
      the Prefunding Account is less than the aggregate Outstanding Note Balance;
      or

     

    (k) failure
      by the Originator as the Servicer to maintain a perfected, first priority
      ownership interest (and backup security interest) in the Timeshare Loans in
      favor of the Issuer.

     

    For
      the
      avoidance of doubt, the amount of principal and Deferred Interest Amounts
      required to be paid to Noteholders pursuant to this Indenture is generally
      limited to the Available Funds in the Collection Account. Therefore, the failure
      to pay principal and Deferred Interest Amounts on the Notes generally will
      not
      result in the occurrence of an Event of Default until the Stated
      Maturity.

     

    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(e) or Section 6.1(f) above
      occurs, (ii) an Event of Default of the kind specified in Section 6.1(a) above
      occurs and either (x) the Aggregate Loan Balance of the Timeshare Loans is
      less
      than the Aggregate Outstanding Note Balance due to a default on one or more
      of
      the Timeshare Loans or (y) such Event of Default specified in Section 6.1(a)
      above 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) above (other than as described in
      Section 6.2(a) above), the Indenture Trustee shall, upon notice from Holders
      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
      Holders 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)
      above) shall occur and is continuing, the Indenture Trustee shall, upon notice
      from Holders 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 each Rating Agency.

      
        
          
          

        

        
          51

          
            

          

        

        
          
          

        

      

    (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 provided, the Holders
      representing at least 66-2/3% of the Outstanding Note Balance of the most senior
      Class Outstanding (and, if the consent of another Class shall have been required
      for such declaration, Holders representing at least 66-2/3% of the Outstanding
      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:

     

    
      	 	
              (A)

            	
              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,

            

    

     

    
      	 	
              (B)

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

            

    

     

    
      	 	
              (C)

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

            

    

     

    and

     

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

     

    (f) An
      automatic acceleration under Section 6.2(a) may only be rescinded and annulled
      by Holders 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) above, (i) if the Indenture Trustee shall have commenced
      making payments as described in Section 6.6, 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 and shall solicit such Noteholders for advice. The Indenture Trustee shall
      then take such action as so directed by the

      
        
          
          

        

        
          52

          
            

          

        

        
          
          

        

      

    Holders
      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 Collateral 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 Agreement. Such rights, powers
      and
      remedies may be exercised by the Indenture Trustee in its own name as trustee
      under this Indenture.

     

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

     

    (ii) 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
      Holders representing at least 66-2/3% of the Adjusted Note Balance of each
      Class
      of Notes then outstanding 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.

     

    (d) If
      the
      Indenture Trustee shall have received instructions, within 45 days from the
      date
      notice pursuant to Section 6.3(a) is first given, from Holders representing
      at
      least 66-2/3% of the Adjusted Note Balance of each Class of Notes then
      Outstanding that such Persons approve of or request the liquidation of all
      of
      the Timeshare Loans, the Indenture Trustee shall to the extent lawful, promptly
      sell, dispose of or otherwise liquidate all of the Timeshare Loans 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 Silverleaf or any Affiliates thereof), such bids to
      be
      approved by the Holders representing at least 66-2/3% of the Adjusted Note
      Balance of each Class of Notes then Outstanding. The Indenture Trustee may
      obtain a prior determination from any conservator, receiver or liquidator of
      the
      Issuer that the terms and manner of any proposed sale, disposition or
      liquidation are commercially reasonable.

     

    Section
      6.4 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

      
        
          
          

        

        
          53

          
            

          

        

        
          
          

        

      

    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;

     

    (iv) and
      any
      custodian, receiver, liquidator, assignee, trustee, sequestrator or other
      similar official in 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 included in the Collateral 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 included in the Collateral 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
      under this Indenture, 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

      
        
          
          

        

        
          54

          
            

          

        

        
          
          

        

      

    collected
      by the Indenture Trustee in respect of the Collateral 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, the Senior Reserve Account, the Prefunding Account and the Capitalized
      Interest Account shall be applied in accordance with the order set forth in
      Section 3.4(d) hereof.

     

    (b) If
      (i) a
      Payment Default Event shall have occurred and (ii) the Indenture Trustee
      shall have effected a sale of the Collateral under Section 6.3(d) and Section
      6.16 hereof ((i) and (ii), a “Default Acceleration Event”), any money collected
      by the Indenture Trustee in respect of the Collateral and any other money that
      may be held hereafter by the Indenture Trustee as security for the Notes,
      including without limitation the Amounts on deposit in the General Reserve
      Account, the Senior Reserve Account, the Prefunding Account and the Capitalized
      Interest Account (all such amounts, collectively “Default Collections”) shall be
      applied in the following order on each Payment Date:

     

    (i) to
      the
      Indenture Trustee, any accrued and unpaid Indenture Trustee Fees and any
      extraordinary out-of-pocket expenses of the Indenture Trustee incurred and
      not
      reimbursed as of such date;

     

    (ii) to
      the
      Servicer, the Servicing Fee, plus any accrued and unpaid Servicing Fees with
      respect to prior Payment Dates and to the successor servicer, if any, the
      Servicer Termination Costs, if any (up to a cumulative total of
      $100,000);

     

    (iii) to
      the
      Backup Servicer, the Backup Servicing Fee, plus any unpaid Backup Servicing
      Fees
      with respect to prior Payment Dates; 

     

    (iv) to
      the
      extent not paid by the Servicer, to the Custodian, the Custodian Fee, plus
      any
      accrued and unpaid Custodian Fees with respect to prior Payment
      Dates;

     

    (v) to
      the
      extent not paid by the Servicer, to the Lockbox Bank, the Lockbox Fee, plus
      any
      accrued and unpaid Lockbox Fees from prior Payment Dates;

     

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

     

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

     

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

     

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

     

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

     

    (xi) to
      the
      Class B Noteholders, all remaining Default Collections until

      
        
          
          

        

        
          55

          
            

          

        

        
          
          

        

      

    the
      Outstanding Note Balance of the Class B Notes is reduced to zero;

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    (xxvii) to
      the
      Issuer, any remaining amounts.

      
        
          
          

        

        
          56

          
            

          

        

        
          
          

        

      

    (c) Notwithstanding
      the occurrence and continuation of an Event of Default, prior to the occurrence
      of a Payment Default Event or Default Acceleration Event, Noteholders shall
      continue to be paid in the manner and priorities described in Section 3.4(a)
      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 Holders representing at least 66-2/3%
      of the adjusted Note Balance of each Class of Notes Outstanding;

     

    (e) 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 its 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.

      
        
          
          

        

        
          57

          
            

          

        

        
          
          

        

      

    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 Collateral, the Holder of any Note shall have the absolute and
      unconditional right to receive payment of the principal of, and interest on,
      such Note as such payments of 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 Holder of any Note to exercise
      any right or remedy accruing upon any Event of Default shall impair any such
      right or remedy or constitute a waiver of any such Event of Default or an
      acquiescence therein. Every right and remedy given by this Article or by law
      to
      the Indenture Trustee or to the Noteholders may be exercised from time to time,
      and’ as often as may be deemed expedient, by the Indenture Trustee or by the
      Noteholders, as the case may be.

     

    Section
      6.12 Control
      by Noteholders.

     

    Except
      as
      may otherwise be provided in this Indenture, until such time as the conditions
      specified in Sections 11.1(a)(i) and (ii) hereof have been satisfied in full,
      the Holders 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:

      
        
          
          

        

        
          58

          
            

          

        

        
          
          

        

      

    (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
      Default Acceleration Event shall have occurred, the Holders 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 the Holder of such Note), 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 Holder of each Outstanding
      Note affected (which only may be waived by the Holders of all Outstanding Notes
      affected).

     

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

     

    Section
      6.14 Undertaking
      for Costs.

     

    All
      parties to this Indenture agree (and each Holder of any Note by its acceptance
      hereof 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 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.

      
        
          
          

        

        
          59

          
            

          

        

        
          
          

        

      

    Section
      6.15 Reserved.

     

    Section
      6.16 Collateral.

     

    (a) The
      power
      to effect the sale of the Collateral pursuant to Section 6.3 hereof shall
      continue unimpaired until all the Collateral 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 Collateral, or any portion thereof except as permitted under Section
      6.3(d) hereof.

     

    (c) In
      connection with a sale of the Collateral:

     

    (i) any
      one
      or more Noteholders (other than Silverleaf 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 Silverleaf 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 Collateral without recourse, representation or warranty in
      any
      portion of the Collateral 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
      Collateral in connection with a sale thereof, and to take all action necessary
      to effect such sale;

     

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

     

    (v) The
      method, manner, time, place and terms of any sale of the Collateral shall be
      commercially reasonable.

     

    (vi) Except
      as
      set forth in Section 5.3(b)(iv) hereof, none of Silverleaf or its Affiliates
      may
      bid for and purchase the Timeshare Loans offered for sale by the Indenture
      Trustee in Section 6.16(c)(i) above.

     

    Section
      6.17 Action
      on
      Notes.

    
      
        
        

      

      
        60

        
          

        

      

      
        
        

      

    

     

    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 Collateral 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 Originator and the Servicer, as applicable,
      of
      each of their respective obligations to the Issuer under or in connection with
      the Transfer Agreement, the Loan 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 Transfer
      Agreement, the Loan 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 Originator or the Servicer
      thereunder and the institution of legal or administrative actions or proceedings
      to compel or secure performance by the Originator or the Servicer of each of
      their obligations under the Transfer Agreement, the Loan 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.

     

    (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
      herein, 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.

    
      
        
        

      

      
        61

        
          

        

      

      
        
        

      

    

     

    (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 or bad faith, except
      that:

     

    (i) this
      Section shall not be construed to limit the effect of Section 7.1(a) and (b)
      above,

     

    (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.

     

    (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 their pledge to the Indenture Trustee
      under
      this Indenture.

     

    (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.

    
      
        
        

      

      
        62

        
          

        

      

      
        
        

      

    

     

    The
      Indenture Trustee shall promptly (but, in any event, within three (3) 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
      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

    
      
        
        

      

      
        63

        
          

        

      

      
        
        

      

    

     

    (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 Indenture Trustee on behalf of the Noteholders.

     

    (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
      Indenture Trustee on behalf of the Noteholders or of any intervening assignment,
      the review of any Timeshare Loan, any Timeshare Loan File, the completeness
      of
      any Timeshare Loan File, the receipt by the Custodian of any Timeshare Loan
      or
      Timeshare Loan File (it being understood that the Indenture Trustee has not
      reviewed and does not intend to review such matters), the performance or
      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 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.

    
      
        
        

      

      
        64

        
          

        

      

      
        
        

      

    

     

    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 “Baa1” 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 the 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
      below.

     

    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’ prior 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 a bankrupt or insolvent, or a receiver
      of
      the Indenture Trustee or of its property shall be appointed, or any public
      officer shall take charge or control of the Indenture Trustee or of its property
      or affairs for the purpose of rehabilitation, conservation or liquidation,
      then
      the Issuer or Holders representing 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 Holders 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.

    
      
        
        

      

      
        65

        
          

        

      

      
        
        

      

    

     

    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
      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 Collateral hereunder by more than one
      Indenture Trustee, it being understood that nothing herein or in such
      supplemental indenture shall constitute such Indenture Trustees co-trustees
      of
      the same allocated trust and that each such Indenture Trustee shall be trustee
      of a trust or trusts hereunder separate and apart from any trust or trusts
      hereunder administered by any other such Indenture Trustee; and upon the
      execution and delivery of such supplemental indenture the resignation or removal
      of the retiring Indenture Trustee shall become effective to the extent provided
      therein and each such successor Indenture Trustee, without any further act,
      deed
      or conveyance, shall become vested with all the rights, powers, trusts and
      duties of the retiring Indenture Trustee with respect to the Notes to which
      the
      appointment of such successor Indenture Trustee relates; but, on request of
      the
      Issuer or any successor Indenture Trustee, such retiring Indenture Trustee
      shall
      duly assign, transfer and deliver to such successor Indenture Trustee all
      property and money held by such retiring Indenture Trustee hereunder with
      respect to the Notes of that or those to which the appointment of such successor
      Indenture Trustee relates.

    
      
        
        

      

      
        66

        
          

        

      

      
        
        

      

    

     

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

     

    (c) No
      successor Indenture Trustee shall accept appointment as provided in this Section
      7.9 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 (10) 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 Collateral 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 Holders 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 Collateral, to the full extent
      that
      local law makes it necessary for such separate trustee or separate trustees
      or
      co-trustee acting jointly with the Indenture Trustee to act. Notwithstanding
      the
      appointment of any separate or co-trustee, the Indenture Trustee shall remain
      obligated and liable for the obligations of the Indenture Trustee under this
      Indenture.

     

    (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 Collateral or any part thereof, and with such
      rights, powers, duties

    
      
        
        

      

      
        67

        
          

        

      

      
        
        

      

    

     

    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
      Collateral 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.

     

    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.

    
      
        
        

      

      
        68

        
          

        

      

      
        
        

      

    

     

    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 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.

     

    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 follows “Silverleaf Timeshare Loan-Backed Notes, Series 2006-A—Blocked
      Account, Wells Fargo Bank, National Association, as Indenture Trustee for the
      benefit of the Noteholders”. 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 accounts. In addition, the Indenture Trustee is hereby
      authorized to enter into, execute, deliver and perform under, each of the
      applicable Transaction Documents 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.

     

    Section
      7.14 Maintenance
      of Office or Agency.

     

    The
      Indenture Trustee will maintain in the City of Minneapolis, Minnesota, 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 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
      AND THE
      GENERAL PARTNER

     

    Section
      8.1 Payment
      of Principal and Interest.

     

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

     

    Section
      8.2 Reserved.

    
      
        
        

      

      
        69

        
          

        

      

      
        
        

      

    

     

    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 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, 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 (2) 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 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;

    
      
        
        

      

      
        70

        
          

        

      

      
        
        

      

    

     

    (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
      limited partnership under the laws of the State of Delaware, and will obtain
      and
      preserve its qualification to do business as a foreign entity in each
      jurisdiction in which such qualification is or shall be necessary to protect
      the
      validity and enforceability of this Indenture, the Notes or any of the Timeshare
      Loans.

     

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

     

    (e) The
      General Partner will keep in full effect its existence, rights and franchises
      as
      a limited liability company under the laws of the State of Delaware, and will
      obtain and preserve its qualification to do business as a foreign entity 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.

    
      
        
        

      

      
        71

        
          

        

      

      
        
        

      

    

     

    (f) The
      General Partner shall at all times observe and comply in all material respects
      with (i) all laws applicable to it, (ii) all requirements of law in the
      declaration and payment of distributions, and (iii) all requisite and
      appropriate formalities in the management of its business and affairs and the
      conduct of the transactions contemplated hereby.

     

    (g) The
      General Partner 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.

     

    (h) The
      General Partner 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 General Partner 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 Collateral; Further Assurances.

     

    (a) Each
      of
      the Issuer and the General Partner 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
      Collateral;

     

    (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 Collateral; 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

    
      
        
        

      

      
        72

        
          

        

      

      
        
        

      

    

     

    (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 Collateral and preserve and defend
      the rights of the Indenture Trustee in the Collateral (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) Each
      of
      the Issuer and the General Partner 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 Collateral 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, 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 and the General Partner will punctually perform and observe all of their
      respective obligations and agreements contained in this Indenture, the
      Transaction Documents and in the instruments and agreements included in the
      Collateral.

     

    (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 or the Paying
      Agent 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 may deem necessary or appropriate in the
      circumstances.

    
      
        
        

      

      
        73

        
          

        

      

      
        
        

      

    

     

    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 in the Indenture Trustee to
      monitor the compliance of the Issuer with the foregoing covenants, and provided,
      further, that the duty of the Indenture Trustee 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 Collateral 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 Collateral; or

     

    (iii) engage
      in
      any business or activity other than as permitted by the Limited Partnership
      Agreement, this Indenture and the other Transaction Documents and any activities
      incidental thereto;

     

    (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) 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 Collateral or any part thereof or any interest therein or the
      proceeds 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 

    
      
        
        

      

      
        74

        
          

        

      

      
        
        

      

    

     

    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, mechanics’ or other
      lien) not to constitute a valid first priority security interest in the
      Collateral;

     

    (viii) take
      any
      other action or fail to take any actions which may cause the Issuer to be
      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 prior notice to the
      Indenture Trustee and the Noteholders.

     

    (b) The
      General Partner will not:

     

    (i) engage
      in
      any business or activity other than as permitted by the Limited Partnership
      Agreement, this Indenture and the other Transaction Documents and any activities
      incidental thereto;

     

    (ii) incur
      or
      assume, directly or indirectly, any indebtedness, or guaranty any indebtedness
      or other obligations of any Person, 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 Issuer);

     

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

     

    (iv) 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 Collateral or any part thereof or any interest therein or the
      proceeds 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, mechanics’ or other lien) not to constitute a valid
      first priority security interest in the Collateral;

     

    (v) take
      any
      other action or fail to take any actions which may cause the General Partner
      to
      be 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

     

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

    
      
        
        

      

      
        75

        
          

        

      

      
        
        

      

    

     

    (c) Notice
      of Events of Defaults.
      Immediately upon the Issuer or the General Partner, as applicable, 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 or the General
      Partner, as applicable, shall deliver to the Indenture Trustee a written notice
      describing its nature and period of existence and what action the Issuer or
      the
      General Partner, as applicable, is taking or proposes to take with respect
      thereto.

     

    (d) Report
      on Proceedings.
      Promptly upon the Issuer’s or the General Partner’s, as applicable, 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 or the General Partner,
      as
      applicable, the Issuer or the General Partner, as applicable, shall deliver
      to
      the Indenture Trustee a written notice specifying the nature of such
      investigation or proceeding and what action the Issuer or the General Partner,
      as applicable, is taking or proposes to take with respect thereto and evaluating
      its merits.

     

    Section
      8.7 Taxes.

     

    Each
      of
      the Issuer and the General Partner shall pay all taxes when due and payable
      or
      levied against its assets, properties or income, including any property that
      is
      part of the Collateral, except to the extent the Issuer or the General Partner,
      as applicable, is contesting the same in good faith and has set aside adequate
      reserves in accordance with accounting principles generally accepted in the
      United States for the payment thereof.

     

    Section
      8.8 Restricted
      Payments.

     

    Except
      as
      otherwise permitted under the Transaction Documents, neither the Issuer nor
      the
      General Partner, shall 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 any owner of an interest in the Issuer
      or the General Partner, as applicable, or otherwise with respect to any
      ownership or equity interest or security in or of the Issuer or the General
      Partner, as applicable, the Originator or the Servicer, (ii) redeem, purchase,
      retire or otherwise acquire for value any ownership or equity interest or
      security in or of the Issuer or the General Partner, as applicable, the
      Originator or the Servicer or (iii) set aside or otherwise segregate any amounts
      for any such purpose; provided, however, that the Issuer or the General Partner,
      as applicable, may make, or cause to be made, payments and distributions to
      or
      on behalf of the Servicer, the Originator, the Indenture Trustee and the
      Noteholders as contemplated by, and to the extent funds are available for such
      purpose under, this Indenture or the other Transaction Documents; and, provided,
      further, that the Issuer may make cash distributions to its members from funds
      available pursuant to Section 3.4(a)(xviii), 3.4 (d)(xxii) or 6.6(b)(xxvii).
      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.

    
      
        
        

      

      
        76

        
          

        

      

      
        
        

      

    

     

    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.

     

    Section
      8.11 Compliance
      with Limited Partnership Agreement and LLC Agreement

     

    The
      Issuer shall comply with and shall not amend the Limited Partnership Agreement
      without the consent of the Holders representing at least 66-2/3% of the Adjusted
      Note Balance of each Class of Notes then Outstanding if such amendment would
      have a material adverse effect on the rights of the Noteholders. In addition,
      the Issuer shall not amend in any material respect the Limited Partnership
      Agreement without providing the Rating Agency with notice no later than the
      tenth Business Day prior to such amendment (unless the right to such notice
      is
      waived by the Rating Agency) and provided that the Rating Agency has not
      informed the Issuer that the rating of any Class of Notes Outstanding will
      be
      withdrawn or reduced as a result of such amendment.

     

    The
      General Partner shall comply with and shall not amend the Limited Liability
      Company Agreement without the consent of the Holders representing at least
      66-2/3% of the Adjusted Note Balance of each Class of Notes then Outstanding
      if
      such amendment would have a material adverse effect on the rights of the
      Noteholders. In addition, the General Partner shall not amend in any material
      respect the Limited Liability Company Agreement without providing the Rating
      Agency with notice no later than the tenth Business Day prior to such amendment
      (unless the right to such notice is waived by the Rating Agency) and provided
      that the Rating Agency has not informed the General Partner that the rating
      of
      any Class of Notes Outstanding will be withdrawn or reduced as a result of
      such
      amendment.

     

    Section
      8.12  Separateness
      Covenants

     

    (a) The
      Issuer shall:

     

    (i) Maintain
      its own deposit and other account or accounts, separate from those of any
      Affiliate. The funds of the Issuer will not be diverted to any other Person
      or
      for other than the use of the Issuer, and, except as may be expressly permitted
      by this Indenture or the other Transaction Documents, the funds of the Issuer
      shall not be commingled with those of any Affiliate of the Issuer.

     

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

    
      
        
        

      

      
        77

        
          

        

      

      
        
        

      

    

     

    (iii) Ensure
      that, to the extent that it jointly contracts with any of its partners or
      Affiliates to do business with vendors or service providers or to 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 Issuer contracts or does business with vendors or service
      providers where 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. Except as otherwise
      contemplated by the Transaction Documents, all material transactions between
      the
      Issuer and any of its Affiliates shall be only on an arm's-length
      basis.

     

    (iv) Maintain
      an office and a telephone number separate from those of each of its partners
      and
      Affiliates other than Affiliates that are bankruptcy remote entities. To the
      extent that the Issuer and any of its partners or Affiliates have offices in
      contiguous space, there shall be fair and appropriate allocation of overhead
      costs (including rent) among them, and each such entity shall bear its fair
      share of such expenses.

     

    (v) Ensure
      that decisions with respect to its business and daily operations shall be
      independently made by the Issuer and shall not be dictated by any Affiliate
      of
      the Issuer.

     

    (vi) Act
      solely in its own name and through its own authorized officers and agents.
      The
      Issuer shall at all times use its own stationery.

     

    (vii) Other
      than organizational expenses and as contemplated by the Transaction Documents,
      pay all expenses, indebtedness and other obligations incurred by it using its
      own funds.

     

    (viii) Not
      enter
      into any guaranty, or otherwise become liable, with respect to any obligation
      of
      any Affiliate nor make any loans to any Person.

     

    (ix) Ensure
      that any financial reports required by it shall comply with generally accepted
      accounting principles and shall be issued separately from, but may be
      consolidated with, any reports prepared for any of its Affiliates so long as
      such consolidated reports contain footnotes describing the effect of the
      transactions on the Issuer and such Affiliate and also state that the assets
      of
      the Issuer are not available to pay creditors of the Affiliate.

     

    (x) Ensure
      that at all times it is adequately capitalized to engage in the transactions
      contemplated in the Limited Partnership Agreement and in the Transaction
      Documents.

     

    (b) The
      General Partner shall:

     

    (i) Maintain
      its own deposit and other account or accounts, separate from those of any
      Affiliate. The funds of the General Partner will not be diverted to any other
      Person or for other than the use of the General Partner, and, except as may
      be
      expressly permitted by this Indenture or the other Transaction Documents, the
      funds of the General Partner shall not be commingled with those of any Affiliate
      of the General Partner.

    
      
        
        

      

      
        78

        
          

        

      

      
        
        

      

    

     

    (ii) Ensure
      that, to the extent that it shares the same officers or other employees as
      any
      of its members or Affiliates the salaries of and the expenses related to
      providing benefits to such officers 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 it jointly contracts with any of its members or
      Affiliates to do business with vendors or service providers or to 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 Issuer contracts or does business with vendors or service
      providers where 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. Except as otherwise
      contemplated by the Transaction Documents, all material transactions between
      the
      General Partner and any of its Affiliates shall be only on an arm's-length
      basis.

     

    (iv) Maintain
      an office and a telephone number separate from those of each of its members
      and
      Affiliates other than Affiliates that are bankruptcy remote entities. To the
      extent that the General Partner and any of its members or Affiliates have
      offices in contiguous space, there shall be fair and appropriate allocation
      of
      overhead costs (including rent) among them, and each such entity shall bear
      its
      fair share of such expenses.

     

    (v) Ensure
      that decisions with respect to its business and daily operations shall be
      independently made by the General Partner and shall not be dictated by any
      Affiliate of the General Partner.

     

    (vi) Act
      solely in its own name and through its own authorized officers and agents.
      The
      General Partner shall at all times use its own stationery.

     

    (vii) Other
      than organizational expenses and as contemplated by the Transaction Documents,
      pay all expenses, indebtedness and other obligations incurred by it using its
      own funds.

     

    (viii) Not
      enter
      into any guaranty, or otherwise become liable, with respect to any obligation
      of
      any Affiliate nor make any loans to any Person.

     

    (ix) Ensure
      that any financial reports required by it shall comply with generally accepted
      accounting principles and shall be issued separately from, but may be
      consolidated with, any reports prepared for any of its Affiliates so long as
      such consolidated reports contain footnotes describing the effect of the
      transactions on the General Partner and such Affiliate and also state that
      the
      assets of the General Partner are not available to pay creditors of the
      Affiliate.

     

    (x) Ensure
      that at all times it is adequately capitalized to engage in the transactions
      contemplated in the Limited Liability Company Agreement and in the Transaction
      Documents.

    
      
        
        

      

      
        79

        
          

        

      

      
        
        

      

    

     

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

     

    
      	 	
              (y)

            	
              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

            

    

     

    
      	 	
              (z)

            	
              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 of the Holders
                of
                Notes.

            

    

     

    (b) Reserved.

     

    (c) The
      Indenture Trustee shall promptly deliver, at least five (5) 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 Holders 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 Holder of each
      Outstanding Note affected thereby, 

    
      
        
        

      

      
        80

        
          

        

      

      
        
        

      

    

     

    (i) change
      the Stated Maturity of any Note or the due date of any installment of principal
      or any installment of interest on 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; or

     

    (ii) reduce
      the required percentage of the Outstanding Note Balance or Adjusted Note
      Balance, that must be repeated by the Noteholders voting on whether to approve
      any supplemental indenture or to waive compliance with provisions of this
      Indenture or Events of Default and their consequences; or

     

    (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 Holder 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 Collateral 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.

     

    (b) The
      Indenture Trustee shall promptly deliver, at least five (5) 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)
      above.

     

    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 of this Indenture or (b) pursuant to
      Section 9.2 of this Indenture without the consent of each Holder of the Notes
      to
      the execution of the same, or the modifications thereby of the trusts created
      by
      this Indenture, the Indenture Trustee shall be entitled to receive, and (subject
      to Section 7.1 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, this Indenture
      shall
      be modified in accordance therewith, and such supplemental indenture shall
      form
      a part of this Indenture for all purposes; and every Holder of Notes theretofore
      or thereafter authenticated and delivered hereunder shall be bound
      thereby.

    
      
        
        

      

      
        81

        
          

        

      

      
        
        

      

    

     

    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 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 fifteen (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 the Servicer by first class mail, postage
      prepaid, mailed not less than fifteen (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.

    
      
        
        

      

      
        82

        
          

        

      

      
        
        

      

    

     

    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 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 (A) Notes
                which
                have been destroyed, lost or stolen and which have been replaced
                or paid
                as provided in Section 2.5 hereof and (B) 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 (x) have become
                due
                and payable, or (y) will become due and payable at their Stated Maturity,
                as applicable within one year, and the Issuer has irrevocably deposited
                or
                caused to be deposited with the Indenture Trustee 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;

            

    

     

    
      
        
        

      

      
        83

        
          

        

      

      
        
        

      

    

     

    (ii) the
      Issuer and the Servicer have paid or caused to be paid all other sums payable
      hereunder by the Issuer and the Servicer for the benefit of the Noteholders
      and
      the Indenture Trustee; and

     

    (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 all cash, securities
      and
      other property held by it as part of the Collateral other than funds deposited
      with the Indenture Trustee pursuant to Section 11.1(a)(i) above, 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) above,
      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
      than 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 3.2 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 11 or (b)
      proceeds of the Timeshare Loans pursuant to Sections 3.4 or 6.6 hereof, and
      all
      Liens granted hereunder shall be released.

     

    ARTICLE
      XII

     

    REPRESENTATIONS
      AND WARRANTIES AND COVENANTS

     

    Section
      12.1 Representations,
      Warranties and Covenants of the Issuer.

     

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

    
      
        
        

      

      
        84

        
          

        

      

      
        
        

      

    

     

    (a) Organization
      and Good Standing.
      The
      Issuer has been duly formed and is validly existing and in good standing as
      a
      limited partnership 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 other Transaction
      Documents and to perform the transactions contemplated hereby and
      thereby;

     

    (b) Binding
      Obligation.
      This
      Indenture and the other 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 other 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 other
      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 other Transaction Documents, (ii) seeking to
      prevent the sale and assignment of any Timeshare Loan or the consummation of
      any
      of the transactions contemplated thereby, or (iii) seeking any determination
      or
      ruling that would be reasonably expected to materially and adversely affect
      (A)
      the performance by the Issuer of this Indenture or any of the other Transaction
      Documents or the interests of the Noteholders, (B) the validity or
      enforceability of this Indenture or any of the other Transaction Documents,
      or
      (C) the Intended Tax Characterization;

     

    (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 other 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;

    
      
        
        

      

      
        85

        
          

        

      

      
        
        

      

    

     

    (h) Reportable
      Transactions.
      The
      Issuer hereby represents and warrants that, after consultation with its tax
      advisors, it is unaware of the presence of factors in the transaction that
      would
      cause the transaction contemplated by this Indenture and the other Transaction
      Documents to constitute a “reportable transaction” as defined in Treasury
      Regulation Section 1.6011-4(b); and

     

    (i) Performance.
      The
      Issuer will perform all of its obligations under this Indenture and the other
      Transaction Documents in accordance with its terms and will enforce its rights
      thereunder.

     

    Section
      12.2 Representations
      and Warranties of the Servicer.

     

    The
      initial 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 State of Texas;

     

    (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 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 1221 River Bend Drive, Suite 120, Dallas, Texas 75247 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
      or
      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 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.

    
      
        
        

      

      
        86

        
          

        

      

      
        
        

      

    

     

    (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, 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 or (ii) the ability of the
      Servicer to perform its obligations under, or the validity or enforceability
      of
      this Agreement or any other documents or transactions contemplated under this
      Agreement, including, without limitation, its ability to foreclose or otherwise
      enforce the Liens of the Timeshare Loans.

     

    (f) Taxes.
      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) Binding
      Obligation.
      This
      Indenture and the other Transaction Documents to which it is a party have each
      been duly executed and delivered on behalf of the Servicer and this Indenture
      and each other Transaction Document to which it is a party constitutes a legal,
      valid and binding obligation of the Servicer 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.

     

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

     

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

     

    (j) Defaults.
      The
      Servicer is not in default under any material agreement, contract, instrument
      or
      indenture to which it is a party or by which it or its properties is or are
      bound, or with respect to any order of any court, administrative agency,
      arbitrator or governmental body, which default would have a material adverse
      effect on the transactions 

    
      
        
        

      

      
        87

        
          

        

      

      
        
        

      

    

     

    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) Reserved.

     

    (n) Information.
      No
      document, certificate or report furnished by the Servicer, in writing, pursuant
      to this Agreement 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 Agreement,
      which have not been disclosed herein or in the certificates and other documents
      furnished by or on behalf of the Servicer pursuant hereto or thereto
      specifically for use in connection with the transactions contemplated hereby
      or
      thereby.

     

    (o) Reserved.

     

    (p) ACH
      Form.
      The
      Servicer has delivered a form of the ACH Form attached to the Transfer 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,

    
      
        
        

      

      
        88

        
          

        

      

      
        
        

      

    

     

    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
      Collateral 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 (A) applicable bankruptcy, insolvency, reorganization,
      moratorium and other laws affecting the enforcement of creditors’ rights
      generally and the rights of creditors of banks and (B) 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 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 

    
      
        
        

      

      
        89

        
          

        

      

      
        
        

      

    

     

    Documents
      has been obtained and is effective.

     

    Section
      12.4 Multiple
      Roles.

     

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

     

    Section
      12.5 Representations,
      Warranties and Covenants of the General Partner.

     

    The
      General Partner represents and warrants to, and covenants with, the Indenture
      Trustee, the Servicer, the Backup Servicer and the Noteholders as of the Closing
      Date, as follows:

     

    (a) Organization
      and Good Standing.
      The
      General Partner has been duly formed and is validly existing and in good
      standing as a limited liability company 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 other Transaction
      Documents and to perform the transactions contemplated hereby and
      thereby;

     

    (b) Binding
      Obligation.
      This
      Indenture and the other Transaction Documents to which it is a party have each
      been duly executed and delivered on behalf of the General Partner and this
      Indenture and each other Transaction Document to which it is a party constitutes
      a legal, valid and binding obligation of the General Partner 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 General Partner of this Indenture or any of
      the
      other 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
      General Partner, or any indenture, agreement or other instrument to which the
      General Partner 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;

    
      
        
        

      

      
        90

        
          

        

      

      
        
        

      

    

     

    (e) No
      Proceedings.
      There
      is no pending or, to the General Partner’s Knowledge, threatened action, suit or
      proceeding, nor any injunction, writ, restraining order or other order of any
      nature against or affecting the General Partner, its officers or directors,
      or
      the property of the General Partner, 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 other Transaction Documents,
      (ii)
      seeking to prevent the sale and assignment of any Timeshare Loan or the
      consummation of any of the transactions contemplated thereby, or (iii) seeking
      any determination or ruling that would be reasonably expected to materially
      and
      adversely affect (A) the performance by the General Partner of this Indenture
      or
      any of the other Transaction Documents or the interests of the Noteholders,
      (B)
      the validity or enforceability of this Indenture or any of the other Transaction
      Documents, or (C) the Intended Tax Characterization;

     

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

     

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

     

    (h) Reportable
      Transactions.
      The
      General Partner hereby represents and warrants that, after consultation with
      its
      tax advisors, it is unaware of the presence of factors in the transaction that
      would cause the transaction contemplated by this Indenture and the other
      Transaction Documents to constitute a “reportable transaction” as defined in
      Treasury Regulation Section 1.6011-4(b); and

     

    (i) Performance.
      The
      General Partner will perform all of its obligations under this Indenture and
      the
      other Transaction Documents in accordance with its terms and will enforce its
      rights thereunder.

     

    Section
      12.6 [Reserved].

     

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

    
      
        
        

      

      
        91

        
          

        

      

      
        
        

      

    

     

    (c) The
      Backup Servicer has the full power and authority to carry on its business as
      now
      being conducted and to enter into and consummate all transactions contemplated
      by this Indenture and the other Transaction Documents to which it is a party,
      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 and the other Transaction Documents to which it is a party, assuming
      due authorization, execution and delivery by the other parties hereto,
      constitute the valid and binding obligations of the Backup Servicer, enforceable
      against the Backup Servicer in accordance with the terms hereof and thereof,
      subject to (A) applicable bankruptcy, insolvency, reorganization, moratorium
      and
      other laws affecting the enforcement of creditors’ rights generally and the
      rights of creditors of banks and (B) general principles of equity, regardless
      of
      whether such enforcement is considered in a proceeding in equity or at
      law.

     

    (e) The
      Backup Servicer 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 Backup Servicer’s good faith and reasonable judgment, is
      likely to affect materially and adversely the ability of the Backup Servicer
      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 Backup Servicer’s knowledge,
      threatened against the Backup Servicer that, if determined adversely to the
      Backup Servicer, would prohibit the Backup Servicer from entering into any
      Transaction Document to which it is a party or, in the Backup Servicer’s good
      faith and reasonable judgment, is likely to materially and adversely affect
      the
      ability of the Backup Servicer 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 Backup Servicer
      of or compliance by the Backup Servicer with the Transaction Documents to which
      it is a party or the consummation of the transactions contemplated by the
      Transaction Documents has been obtained and is effective.

     

    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:

    
      
        
        

      

      
        92

        
          

        

      

      
        
        

      

    

     

    (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;

     

    (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:

    

    Silverleaf
      Finance V, L.P.

    1221
      River Bend Drive, Suite 120

    Dallas,
      Texas 75247

    Attention:
      Harry J. White, Chief Financial Officer

    Telecopier
      No.: (214) 631-4981

     

    with
      a
      copy to:

     

    Meadows,
      Owens, Collier, Reed, Cousins & Blau, L.L.P.

    901
      Main
      Street, Suite 3700

    Dallas,
      Texas 75202

    Attention:
      David N. Reed, Esq.

    Telecopier
      No.: (214) 747-3732

    
      
        
        

      

      
        93

        
          

        

      

      
        
        

      

    

     

    If
      to the
      Servicer:

     

    Silverleaf
      Resorts, Inc.

    1221
      River Bend Drive, Suite 120

    Dallas,
      Texas 75247

    Attention:
      Robert E. Mead, Chief Executive Officer

    Telecopier
      No.: (214) 905-0514

     

    with
      a
      copy to:

     

    Meadows,
      Owens, Collier, Reed, Cousins & Blau, L.L.P.

    901
      Main
      Street, Suite 3700

    Dallas,
      Texas 75202

    Attention:
      David N. Reed, Esq.

    Telecopier
      No.: (214) 747-3732

     

    If
      to the
      Indenture Trustee, Paying Agent and Backup Servicer:

     

    Wells
      Fargo Bank, National Association

    Sixth
      and
      Marquette Avenue

    MAC
      N9311-161

    Minneapolis,
      Minnesota 55479

    Attention:
      Corporate Trust Services/Asset-Backed Administration

    Facsimile
      Number: (612)
      667-3464

    Telephone
      Number: (612)
      667-8058

     

    If
      to the
      Custodian:

     

    Wells
      Fargo Bank, National Association

    751
      Kasota Avenue

    MAC
      N9329-011

    Minneapolis,
      Minnesota 55479

    Attention:
      Corporate Trust Services/Securities Vault

    Facsimile
      Number: (612)
      667-1080

    

     

    If
      to the
      Rating Agency:

     

    Moody’s
      Investors Service, Inc.

    99
      Church
      Street

    New
      York,
      New York 10004

    Attention:
      Residential Mortgage Pass-Through Surveillance Group

     

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

    
      
        
        

      

      
        94

        
          

        

      

      
        
        

      

    

     

    (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 Holders 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, and the Backup
      Servicer each hereby agrees that it will not, directly or indirectly institute,
      or cause to be instituted, against the Issuer or the Collateral 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.

     

    
      
        
        

      

      
        95

        
          

        

      

      
        
        

      

    

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

     

    SILVERLEAF
      FINANCE V, L.P.,

     

     

    By: 
      SILVERLEAF
      FINANCE V, LLC, 

    its
      general partner

     

    By: 
      /S/
      HARRY J. WHITE, JR.

    Name: 
      Harry
      J.
      White, Jr.

    Title: 
      Vice
      President, Treasurer and Chief Financial
      Officer

     

     

    SILVERLEAF
      FINANCE V, LLC

     

     

    By: 
      /S/
      HARRY J. WHITE, JR.

    Name: 
      Harry
      J.
      White, Jr.

    Title: 
      Vice
      President, Treasurer and Chief Financial
      Officer

     

     

    SILVERLEAF
      RESORTS, INC.,

    as
      Servicer

     

    By: 
      /S/
      HARRY J. WHITE, JR.

    Name: 
      Harry
      J.
      White, Jr.

    Title: 
      CFO

     

     

    WELLS
      FARGO BANK, NATIONAL ASSOCIATION

    as
      Backup
      Servicer

     

    By: 
      /S/
      CORY W. BRANDEN

    Name: 
      Cory W. Branden

    Title: 
      Vice
      President

    
      
        
        

      

      
        96

        
          

        

      

      
        
        

      

    

     

     

    WELLS
      FARGO BANK, NATIONAL ASSOCIATION,

    as
      Indenture Trustee

     

    By: 
      /S/
      CORY W. BRANDEN

    Name: 
      Cory W. Branden

    Title: 
      Vice
      President

     

     

    WELLS
      FARGO BANK, NATIONAL ASSOCIATION,

    as
      Custodian

     

    By: 
      /S/
      CORY W. BRANDEN

    Name: 
      Cory W. Branden

    Title: 
      Vice
      President

     

     

    WELLS
      FARGO BANK, NATIONAL ASSOCIATION,

    as
      Account Intermediary

     

    By: 
      /S/
      CORY W. BRANDEN

    Name: 
      Cory W. Branden

    Title: 
      Vice
      President

    

    

    

    [Signature
      Page to the Indenture]

    
      
        
        

      

      
        97

        
          

        

      

      
        
        

      

    

     

    List
      of
      Schedules and Exhibits to Agreement Not Filed Herewith:

    

    Exhibit
      A: Form of Notes

    Exhibit
      B: Form
      of
      Investor Representation Letter - Rule 144A

    Exhibit
      C: Reserved

    Exhibit
      D: Form of Monthly Servicer Report

    Exhibit
      E: Servicing Officer’s Certificate

    Exhibit
      F: Reserved

    Exhibit
      G: Form of ROAP Waiver Letter

    Exhibit
      H: List of Silverleaf Executive Management

    Exhibit
      I: Form of Investor Representation Letter - Regulation S

    Exhibit
      J: Form of Transferor Certification - Rule 144A Global Note to Temporary
      Regulation S Global Note

    Exhibit
      K: Form of Transferor Certification - Rule 144A Global Note to Regulation S
      Global Note

    Exhibit
      L: Form of Transferor Certification - Regulation S Global Note to Rule 144A
      Global Note 

    Exhibit
      M: Form of Class G Note Investor Representation Letter

    Annex
      A:
      Standard Definitions

    Schedule
      I--Schedule of Timeshare Loans

     

    
      
        
        

      

      98

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]