Document:

Exhibit 10.150

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bluegreen(R)                                colorful places to live and play(TM)

April 25, 2007

Mr. David L. Pontius
459 Henkel Circle
Winter Park, FL 32789

Dear Dave:

I am pleased to offer you the position of President, Resorts Division and Senior
Vice President of Bluegreen Corporation, reporting to me. As I mentioned, it is
my intention to recommend to the Nomination & Governance Committee of the Board
to change the title to Executive Vice President of the Corporation. Your
effective start date will be June 1, 2007. Your annual salary will be
$500,000.00 paid at the bi-weekly rate of $19,230.77. In addition, you will
receive a bonus budgeted to equal 100% of your base salary or $500,000.00, based
upon achievement of the Resort Division's targeted financial metric at plan with
a potential of up to 150% of base salary, based upon exceeding the same targeted
financial metric. For the year 2007, you will receive a full bonus payment based
on full year participation.

You will also be eligible for long-term incentive (LTI) compensation budgeted to
equal $300,000.00 based on achievement of the Resort Division's targeted
financial metric at plan, up to a maximum of $600,000.00 for exceeding the same
targeted financial metric. For any year, if the LTI earned is less than
$300,000.00, you will be guaranteed an additional payment of $100,000.00, paid
in the Fiscal year that the LTI fully vests. If the LTI earned is between
$300,000.00 and $400,000.00 you will be paid the difference between the actual
award and $400,000.00 in the year the LTI fully vests. If the LTI earned is
$400,000.00 or over, the LTI payment will equal what is earned for that year
according to the LTI schedule. The form of the LTI compensation will be
determined on a future date in 2007.

You will also be eligible for a signing bonus of $450,000.00 to be paid in three
equal installments of $150,000.00 in January 2008, January 2009, and January
2010. In addition, you will receive a $12,000.00 annual car allowance. All
compensation is paid according to Accounting and Human Resources policies and
procedures, and all applicable IRS regulations, state and federal laws.

In the event you are terminated without cause you will receive a 12-month base
salary severance plus a prorated bonus payment based on performance versus
objectives.

                                            4960 Conference Way North, Suite 100
                                                            Boca Raton, FL 33431
                                             Tel: 561.912.8000 Fax: 561.912.8100

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Page 2

David Pontius

You also will be eligible to participate in the Company sponsored health
insurance program three months from your date of hire and Bluegreen
Corporation's Retirement Savings Plan - 401(k) the beginning of the quarter
immediately following one year of service in accordance with the eligibility
requirements of the Plan. You are also eligible for four weeks of paid vacation
time per year, to be incorporated into the Company's Paid Time Off Program.
Also, if needed, the Company will reimburse you for the incremental cost in your
health insurance (C.O.B.R.A. payment less your former employee premium), until
such time that you are eligible to participate in the Company sponsored health
insurance program. Please note reimbursed COBRA expenditures will be treated as
taxable compensation to you as required by IRS regulations. For your
information, our fiscal weeks run Monday through Sunday and payroll is processed
bi-weekly for the two weeks ending the Sunday before payday.

Per Company policy this offer is contingent upon the satisfactory results of our
standard background investigation and drug test.

If you agree to the terms of this employment offer letter, please sign on the
"Accepted" line at the bottom of both letters, return the original copy for our
files and retain one copy for you.

David, I look forward to working with you and having you as a key member of my
management team. If you have any questions regarding the above information,
please feel free to call me or Susan Saturday at (561) 912-8080.

Very truly yours,

/s/ John M. Maloney Jr.

John M. Maloney Jr.
President & CEO
Bluegreen Corporation

Accepted: /s/ David L. Pontius  Dated: 4/27/07
         ----------------------
            David L. Pontius

CC: Susan SaturdayExhibit 10.216

                    CONSTRUCTION LOAN AND SECURITY AGREEMENT

                                  By and Among

                          TEXTRON FINANCIAL CORPORATION

                                       and

                       BLUEGREEN VACATIONS UNLIMITED, INC.

                                       and

                              BLUEGREEN CORPORATION

                              As of: March 23, 2007

                                                               EXECUTION VERSION

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                               TABLE OF CONTENTS

                                                                            Page

1. Definitions and Construction................................................1

         1.1 Definitions.......................................................1
         1.2 Construction.....................................................11
         1.3 Schedules and Exhibits...........................................11
         1.4 Accounting Principles............................................12

2. The Loan...................................................................12

         2.1 General..........................................................12
         2.2 Intentionally Omitted............................................12
         2.3 Construction Loan................................................12
         2.4 Advances.........................................................12
         2.5 Intentionally Omitted............................................13
         2.6 Requests for Construction Advance................................13
         2.7 Amounts in Excess of Maximum Loan Amount.........................13
         2.8 Use of Proceeds..................................................13
         2.9 Closing..........................................................14
         2.10 Maximum Relationship Amount.....................................14

3.  Loan Documents and Loan Account...........................................14

         3.1  Loan Documents..................................................14
         3.2  Loan Account....................................................14

4. Interest Rate..............................................................14

         4.1 Primary Interest Rate............................................14
         4.2 Default Rate.....................................................15
         4.3 Calculation of Interest..........................................15
         4.4 Limitation of Interest to Maximum Lawful Rate....................15

5. Fees.......................................................................15

         5.1 Loan Fee.........................................................15
         5.2 Late Charge......................................................15
         5.3  General.........................................................16

6. Payments...................................................................16

         6.1 General..........................................................16
         6.2 Reinstatement of Obligations.....................................17
         6.3 Prepayment.......................................................17
         6.4 Indemnity........................................................17

7. Security; Guaranties.......................................................18

         7.1 Security.........................................................18
         7.2 Cross-Default....................................................20

                                       i
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         7.3 Guaranty.........................................................20
         7.4 Additional Documents and Future Actions..........................20
         7.5 Location of Collateral...........................................20
         7.6 Insurance and Protection of Collateral...........................20

8. Funding Procedures.........................................................20

         8.1 General..........................................................20
         8.2 Disbursement Agent...............................................21
         8.3 Payment of Bills.................................................21
         8.4 Construction Component Portion...................................21
         8.5 Retainage; Conditions Precedent to Final Disbursements...........21
         8.6 Deposit of Funds Advanced/Advances to Disbursement Agent,
             Architect, Contractor and Subcontractors.........................23
         8.7 Advances Do Not Constitute a Waiver..............................23

9. Representations and Warranties.............................................23

         9.1 Organization; Power..............................................23
         9.2 Authorization; No Legal Restrictions; No Breach of
             Other Agreements.................................................24
         9.3 Approvals; Licenses, Etc.........................................25
         9.4 Enforceability...................................................25
         9.5 Title............................................................25
         9.6 Liens............................................................25
         9.7 Financial Statements and Financial Condition.....................25
         9.8 Taxes............................................................26
         9.9 Subsidiaries; Affiliates and Capital Structure...................27
         9.10 Litigation Proceedings, Etc.....................................27
         9.11 Licenses; Permits;  Etc.........................................27
         9.12 Environmental Matters...........................................27
         9.13 Full Disclosure.................................................28
         9.14 Use of Proceeds/Margin Stock....................................28
         9.15 No Defaults.....................................................28
         9.16 Compliance with Law.............................................28
         9.17 Restrictions of Borrower or Guarantors..........................29
         9.18 Broker's Fees...................................................29
         9.19 Deferred Compensation Plans.....................................29
         9.20 Labor Relations.................................................29
         9.21 Tax Identification/Social Security Numbers......................30
         9.22 Insurance.......................................................30
         9.23 Names and Addresses.............................................30
         9.24  Solvency.......................................................30
         9.25  Common Enterprise..............................................30
         9.26 Intentionally Omitted...........................................31
         9.27 Completeness of Representations.................................31
         9.28  No Violation of Right of First Refusal.........................31

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10. Representations, Warranties and Covenants.................................31

         10.1 Access and Utilities............................................31
         10.2  Compliance.....................................................31
         10.3  Declarations...................................................31
         10.4  Zoning Laws, Building Codes, Etc...............................32
         10.5  Units Ready for Use............................................32
         10.6  Mortgaged Property and Taxes and Fees..........................32
         10.7  No Defaults....................................................32
         10.8  Timeshare Plan.................................................32
         10.9  Sale of Timeshare Interests....................................33
         10.10  Brokers.......................................................33
         10.11  Tangible Property.............................................33
         10.12  Condition of Project..........................................34
         10.13  Assessments and Developer Subsidy.............................34
         10.14   Amenities....................................................34
         10.15  Permits and Licenses..........................................34
         10.16  Wetlands......................................................34
         10.17  Mechanics Lien Claims.........................................34
         10.18  Project Contracts.............................................34
         10.19 Certified Survey Map Approved..................................34
         10.20 Site Plan Approval.............................................34
         10.21 Club Plan......................................................35
         10.22 Reservation System.............................................35
         10.23 One to One Ratio Compliance....................................35
         10.24 Club Documents.................................................35

11. Construction Representations, Warranties and Covenants....................35

         11.1 Construction....................................................36
         11.2 Cost Certificate................................................36
         11.3 Construction Contract...........................................36
         11.4 Architect's Contract............................................37
         11.5 Subcontracts....................................................38
         11.6  Specifications.................................................38
         11.7 Permits.........................................................39
         11.8 Commencement of Construction....................................39
         11.9 Zoning and Land Use.............................................39
         11.10 Additional Equity..............................................39
         11.11 No Developer's Fee.............................................40
         11.12 Right of Lender to Inspect Development Parcel and
               Review Specifications..........................................40
         11.13 Correction of Defects..........................................40
         11.14 Notification of Mechanics Lien Claims..........................40
         11.15 Construction Tests.............................................40
         11.16 Substantial Completion.........................................41

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         11.17  Occupancy Permits.............................................41
         11.18 Notice of Completion...........................................41
         11.19 Compliance with Inspector's Standards..........................42
         11.20 Bonding Requirements...........................................42
         11.21 Force Majeure..................................................42
         11.22 Lien Waivers...................................................42
         11.23 Specifications.................................................42

12. General Affirmative Covenants.............................................42

         12.1 Payment and Performance of Obligations..........................43
         12.2 Business Office.................................................43
         12.3 Maintenance of Existence, Qualification and Assets..............43
         12.4 Consolidation and Merger........................................43
         12.5 Maintenance of Insurance........................................43
         12.6 Maintenance of Security.........................................43
         12.7 Payment of Taxes and Claims.....................................44
         12.8 Inspections.....................................................44
         12.9 Records.........................................................45
         12.10 Management.....................................................45
         12.11 Maintenance....................................................45
         12.12 Local Legal Compliance.........................................45
         12.13 Registration Compliance........................................45
         12.14 Other Compliance...............................................46
         12.15 Further Assurances.............................................46
         12.16 Maintenance and Amenities......................................46
         12.17 Loan Costs.....................................................46
         12.18 Indemnification of Lender......................................46
         12.19 Use of Borrower's Name.........................................48
         12.20 Right to Provide Future Financing..............................48
         12.21 Inspector......................................................48
         12.22  Sales and Marketing...........................................49
         12.23  Project Contracts.............................................49
         12.24 Consents.......................................................49
         12.25  Engineering Survey............................................49
         12.26  Intentionally Omitted.........................................49
         12.27  Exchange Company..............................................49
         12.28  Intentionally Omitted.........................................50
         12.29  One to One Ratio Compliance...................................50

13. Reporting Requirements....................................................50

         13.1 Intentionally Omitted...........................................50
         13.2 Quarterly Financial Reports.....................................50
         13.3 Annual Financial Reports of Guarantors..........................50
         13.4 Officer's Certificate...........................................50
         13.5 Audit Reports...................................................51

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         13.6 Sales Reports...................................................51
         13.7 Association Reports.............................................51
         13.8 Notice of Default or Event of Default...........................51
         13.9 Notice of Claimed Default.......................................51
         13.10 Material Adverse Developments..................................51
         13.11 Other Information..............................................52

14. Negative Covenants........................................................52

         14.1 Organization....................................................52
         14.2 Operating Contracts.............................................52
         14.3 Limitation on Other Debt/Further Encumbrances...................52
         14.4. Intentionally Omitted..........................................52
         14.5 Amendment of Declarations, Etc..................................52
         14.6 Ownership.......................................................52
         14.7 Other Liens or Assignments......................................53
         14.8 Merger, Etc.....................................................53
         14.9 Use of Lender's Name............................................53
         14.10 Transactions with Affiliates...................................53
         14.11 Name or Address Change.........................................53
         14.12.  Intentionally Omitted........................................53
         14.13 Distributions..................................................53
         14.14.  Intentionally Omitted........................................54
         14.15  Intentionally Omitted.........................................54
         14.16 Restrictions on Transfers......................................54
         14.17 Restrictive Covenants..........................................54
         14.18.  Intentionally Omitted........................................54
         14.19.  Intentionally Omitted........................................54
         14.20  Intentionally Omitted.........................................54
         14.21 Amenities......................................................54
         14.22  Changes in Accounting.........................................54
         14.23  Club Reservation System.......................................55

15. Affiliate Indebtedness....................................................55

16. Financial Covenants.......................................................55

         16.1 Minimum Tangible Net Worth......................................55
         16.2  Minimum Debt to Tangible Net Worth Ratio.......................56

17. Conditions of and Documents to be Delivered at the Closing................56

         17.1 Loan Documents..................................................56
         17.2 Opinions of Counsel.............................................56
         17.3 Project Documents...............................................56
         17.4 Association Documents...........................................56
         17.5 Obligors' Documents.............................................56
         17.6 Good Standing Certificates......................................57
         17.7 Insurance.......................................................57

                                       v
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         17.8 Flood Insurance.................................................57
         17.9 Authorizing Resolutions.........................................57
         17.10 UCC-1 Financing Statements.....................................57
         17.11 UCC-1 Search Report............................................57
         17.12 Releases.......................................................57
         17.13 Closing Certificates...........................................58
         17.14 Compliance.....................................................58
         17.15 Borrower's Certificate of Indemnity............................58
         17.16 Mortgagee Title Insurance Commitment and Policy................58
         17.17 Taxes and Assessments..........................................59
         17.18 Preclosing Inspections.........................................59
         17.19 Expenses.......................................................59
         17.20 14.12.       Intentionally Omitted.............................59
         17.21 Intentionally Omitted..........................................59
         17.22 Permits and Approvals..........................................59
         17.23 Project Contracts..............................................59
         17.24 Compliance with Planning and Zoning............................59
         17.25 Project Broker.................................................59
         17.26 Escrow Agreements..............................................60
         17.27 Credit References..............................................60
         17.28 Acquisition Equity.............................................60
         17.29 Post-Closing Requirements......................................60
         17.30 Other..........................................................60

18. Conditions to Lender's Obligation to Make Construction Advances...........60

         18.1 Documents.......................................................60
         18.2 Representations and Warranties..................................60
         18.3 Covenants.......................................................61
         18.4 No Default......................................................61
         18.5 Request for Construction Advance................................61
         18.6 Soft Costs......................................................61
         18.7 Other Agreements................................................62
         18.8 Construction Documents..........................................62
         18.9 Contractor's Insurance..........................................62
         18.10 Intentionally Omitted..........................................62
         18.11 Intentionally Omitted..........................................62
         18.12 Certificates of Substantial Completion.........................62
         18.13 Compliance.....................................................62
         18.14 Lien Waivers, etc..............................................62
         18.15 Title Policy Endorsements......................................63
         18.16 Fees and Expenses..............................................63
         18.17 Permits and Approvals..........................................63
         18.18 Lender's Mortgage..............................................63
         18.19 Completion of Work.............................................63
         18.20  Additional Equity.............................................63

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         18.21 Advances Do Not Constitute a Waiver............................63
         18.22 No Obligation to Fund After Filed Liens........................63
         18.23 Stored Goods...................................................64
         18.24 Other..........................................................64

19.  Default; Remedies........................................................64

         19.1 Payments........................................................64
         19.2 Covenant Defaults...............................................64
         19.3 Warranties or Representations...................................64
         19.4 Enforceability of Liens.........................................65
         19.5 Involuntary Proceedings.........................................65
         19.6 Proceedings.....................................................65
         19.7 Attachment; Judgment; Tax Liens.................................65
         19.8 Intentionally Omitted...........................................65
         19.9 Removal of Collateral...........................................65
         19.10. Intentionally Omitted.........................................65
         19.11  Default of Guarantor..........................................66
         19.12 Merger or Dissolution..........................................66
         19.13 Default by Borrower or Guarantor Under Other Agreements........66
         19.14 Loss of License................................................66
         19.15 Suspension of Sales............................................66
         19.16 Violation of Negative Covenants................................66
         19.17 Deficiency.....................................................66
         19.18 Abandonment or Cessation of Construction.......................66
         19.19 Lien Against Development Parcel................................66
         19.20 Unauthorized Work..............................................67
         19.21 Breach.........................................................67
         19.22 Criminal Proceedings...........................................67
         19.23 Intentionally Omitted..........................................67
         19.24 Intentionally Omitted..........................................67
         19.25 Intentionally Omitted..........................................67
         19.26 Bonding Requirements...........................................67
         19.27 Intentionally Omitted..........................................67
         19.28 Fraud..........................................................67
         19.29 Intentionally Omitted..........................................67
         19.30 Insolvency.....................................................67
         19.31 Encroachments and Permits......................................67
         19.32 Material Adverse Change........................................68
         19.33 Cessation of Business..........................................68

20.  Termination of Obligation to Advance/Remedies............................68

         20.1 Termination of Obligation to Advance............................68
         20.2 Remedies........................................................68
         20.3 Notice of Sale of Personal Property Collateral..................73
         20.4 Application of Collateral; Termination of Agreements............74

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         20.5 Suits to Protect the Development Parcel.........................74
         20.6 Rights of Lender Regarding Collateral...........................74
         20.7 Waiver of Appraisement Valuation, Stay, Extension
              and Redemption Laws.............................................75
         20.8 Delegation of Duties and Rights.................................75
         20.9 Lender Not in Control...........................................75
         20.10 Waivers........................................................75
         20.11 Cumulative Rights..............................................77
         20.12 Expenditures by Lender.........................................77
         20.13 Diminution in Value of Collateral..............................77
         20.14 Discontinuance of Proceedings..................................77

21. Partial Releases; Other Releases..........................................77

22. Certain Rights of Lender..................................................78

         22.1 Protection of Collateral........................................78
         22.2 Performance by Lender...........................................79
         22.3 No Liability of Lender..........................................79
         22.4 Right to Defend Action Affecting Security.......................79
         22.5 Indemnities, Loan Costs and Expenses............................79
         22.6 Lender's Right of Set-Off.......................................79
         22.7 No Waiver.......................................................80
         22.8 Right of Lender to Extend Time of Payment, Substitute,
              Release Security, Etc...........................................80
         22.9 Assignment of Lender's Interest.................................80
         22.10 Power of Attorney..............................................81
         22.11 Relief from Automatic Stay, Etc................................81
         22.12 Investigations and Inquiries...................................81

23.  Miscellaneous............................................................82

         23.1 Notices.........................................................82
         23.2 Term of Agreement...............................................83
         23.3 Survival........................................................83
         23.4 Continuation and Investigation..................................83
         23.5 Governing Law; Consent to Jurisdiction..........................83
         23.6 Invalid Provisions..............................................84
         23.7 Successors and Assigns..........................................84
         23.8 Amendment.......................................................85
         23.9 Counterparts; Effectiveness; Facsimile..........................85
         23.10 Lender Not Fiduciary...........................................85
         23.11 Total Agreement................................................85
         23.12 Consents, Approvals and Discretion.............................85
         23.13 Litigation.....................................................85
         23.14 Submissions....................................................86
         23.15 Incorporation of Exhibits......................................86

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         23.16 Consent to Advertising and Publicity of Documents..............86
         23.17 Control of Association.........................................87
         23.18 Directly or Indirectly.........................................87
         23.19 Savings Clause.................................................87
         23.20 Reimbursement for Taxes........................................87
         23.21 Headings.......................................................87
         23.22 Gender.........................................................87
         23.23 Time of the Essence............................................88
         23.24 Conflict.......................................................88
         23.25 Joinder and Consent............................................88

                                    Schedules

Schedule 9.8            -         Taxes

Schedule 9.9            -         Subsidiaries

Schedule 9.10           -         Litigation

Schedule 9.23           -         Names and Addresses

Schedule 10.18          -         Project Contracts

Schedule 14.7           -         Permitted Liens

Schedule 21             -         Form of Partial Release

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                                TABLE OF EXHIBITS

EXHIBIT A-1       LEGAL DESCRIPTION OF PHASE 2 LAND

EXHIBIT A-2       LEGAL DESCRIPTION OF EXISTING UNITS

EXHIBIT B         INTENTIONALLY OMITTED

EXHIBIT C         FORM OF REQUEST FOR CONSTRUCTION COMPONENT ADVANCE

EXHIBIT D         APPROVED SITE PLAN

EXHIBIT E         PHASE 2 COST CERTIFICATE

EXHIBIT F         FORM OF OFFICER'S CERTIFICATE

                                       x
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                    CONSTRUCTION LOAN AND SECURITY AGREEMENT

      THIS  CONSTRUCTION  LOAN AND SECURITY  AGREEMENT  is made  effective as of
March  ____,  2007  by and  among  TEXTRON  FINANCIAL  CORPORATION,  a  Delaware
corporation   ("Lender"),   BLUEGREEN  VACATIONS  UNLIMITED,   INC.,  a  Florida
corporation ("Borrower"), and BLUEGREEN CORPORATION, a Massachusetts corporation
("Guarantor").

      NOW THEREFORE,  in  consideration  of the mutual  covenants and agreements
contained in this Agreement, and for other good and valuable consideration,  the
receipt and adequacy of which are  acknowledged,  the parties to this Agreement,
intending to be legally bound, hereby agree as follows:

      1. Definitions and Construction.

            1.1.  Definitions.  The  following  words  and  phrases  as  used in
capitalized  form in this  Agreement,  whether in the singular or plural,  shall
have the meanings indicated:

            Advance or Construction  Advance means an advance of the proceeds of
the Loan by Lender to or on behalf of Borrower in  accordance  with the terms of
this Agreement.

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

            Affiliate  Indebtedness means all present and future indebtedness or
obligations  owed by Borrower to  Guarantor  or to any  Affiliate of Borrower or
Guarantor.

            Agreement means this  Construction Loan and Security  Agreement,  as
amended, restated, extended or supplemented from time to time.

            Agreement  to  Provide  Insurance  means the  Agreement  to  Provide
Insurance dated as of the date hereof between  Borrower and Lender,  as amended,

<PAGE>

restated, extended or supplemented from time to time.

            Amenities means the recreational,  access and utility  facilities to
be included as part of or to benefit the Project, including, without limitation,
the such  amenities  may be further  described in the  Declarations,  and Public
Report.

            Amenities  Agreements means  collectively,  each existing and future
agreement,  including  without  limitation,  the  Ingress  and  Egress  Easement
Agreement and the Declarations, which grant to the Borrower and to the owners of
Units or Timeshare  Interests at the Project the right to use the  Amenities and
which provides for certain easements, access and use rights and for the delivery
of certain  services  at the Project or to  Borrower  or if  applicable,  to the
Owners of Timeshare  Interests,  as such  agreements  may be amended,  restated,
extended or supplemented from time to time, and any new amenities agreements.

            Applicable Mechanics Lien Law means any statute,  ordinance, rule or
other law of the State or any governmental  subdivision  thereof,  pertaining to
the perfection  and/or  priority of the rights of mechanics',  materialmen's  or
other contractors' claimants.

            Approved  Costs means the costs  disclosed in the final Phase 2 Cost
Certificate, approved by Lender.

            Architect means Forum  Architecture & Interior Design,  Inc. and any
replacement architect for the Work approved by Lender.

            Architect's Contract has the meaning set forth in Section 11.4.

            As-Built Survey has the meaning set forth in Section 8.5(f).

            Assignment of Construction Contract means that certain Assignment of
Construction  Contract  from  Borrower  in favor  of  Lender  pursuant  to which
Borrower  assigns  its rights  but not its  obligations  under the  Construction
Contract to Lender.

            Assignment  of Property  Rights  means that certain  first  priority
Assignment of Property Rights made by Borrower in favor of Lender evidencing the
collateral  assignment to Lender of all property rights related to the Mortgaged
Property.

            Association  means Grande  Villas at World Golf Village  Condominium
Association,  Inc.,  a Florida  not-for-profit  corporation,  together  with its
successors or assigns.

            Borrower  means  Bluegreen  Vacations  Unlimited,  Inc.,  a  Florida
corporation.

            Business  Day means each day which is not a Saturday  or Sunday or a
legal  holiday  under the laws of the State of  Connecticut,  the State of Rhode
Island, the State of Florida or the United States.

            Closing  means the closing of the  transactions  contemplated  under

                                       2
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this Agreement.

            Closing Date means the effective date of this Agreement set forth in
the heading of this Agreement.

            Club means the Bluegreen Vacation Club Multi-Site Timeshare Plan and
its component site resorts; the Club is not a legal entity or association of any
kind.

            Club Documents means the Bluegreen  Vacation Club multi-site  public
offering  statement  and its  exhibits as amended  from time to time as filed in
Florida with the Division.

            Code  means  the  Uniform  Commercial  Code in force in the State of
Florida, as amended from time to time.

            Collateral has the meaning set forth in Section 7.1.

            Commencement  Date  means on or before  January  1, 2007 for Phase 2
Work.

            Commercial Leases has the meaning set forth in Section 7.1(e).

            Commitment  means the Letter of Intent  issued by Lender to Borrower
dated July 14, 2006 and accepted on August 7, 2006.

            Completion  of the Work means one hundred  percent  (100%)  finished
construction of the Work (not Substantial  Completion) for Phase 2 in accordance
with the  Specifications  for such Phase,  certified to Lender by the Inspector,
Borrower and Contractor.

            Condominium Act means the "Florida  Condominium  Act",  Chapter 718,
Florida Statutes, as it is amended from time to time.

            Condominium Plan means the Condominium Plan for the Project.

            Construction Contract has the meaning set forth in Section 11.3.

            Construction  Advance Period means the period of time  commencing on
the  Closing  Date and  ending on August  31,  2007,  unless  sooner  terminated
hereunder.

            Contractor means the general contractor(s)  selected by Borrower and
approved by Lender for any of the applicable  Work, and any replacement  general
contractor approved by Lender.

            Debtor    Relief    Laws   means   all    applicable    liquidation,
conservatorship,     bankruptcy,    moratorium,    rearrangement,    insolvency,
reorganization or similar law,  proceeding or device providing for the relief of
debtors  from time to time in  effect  and  generally  affecting  the  rights of
creditors.

            Declarations   means,   collectively,   the   Northwest   Commercial
Declaration, the Northwest Master Declaration and the Timeshare Declaration.

                                       3
<PAGE>

            Default Rate has the meaning set forth in Section 4.2.

            Disbursement Agent has the meaning set forth in Section 8.2.

            Division means the Division of Land Sales,  Condominiums  and Mobile
Homes of the Department of Business and Professional Regulation for the State of
Florida.

            Environmental  Agreement means that certain Environmental  Agreement
of even date herewith between Borrower and Lender as amended, restated, extended
or supplemented from time to time, and any new environmental  agreement executed
in its place.

            Environmental  Laws has the meaning  set forth in the  Environmental
Agreement.

            Event of Default means any Event of Default described in Section 19.

            Existing  Units means the  presently  constructed  seventy-two  (72)
condominium  units and land upon which they have been  constructed  and  related
common elements and amenities, subject to the Declarations, as more particularly
described on Exhibit "A-2" attached hereto.

            GAAP means generally acceptable  accounting principles in the United
States,  applied  on a  consistent  basis,  as  described  in  Opinions  of  the
Accounting  Principles  Board of the  American  Institute  of  Certified  Public
Accountants  and/or in statements of the Financial  Accounting  Standards  Board
which are applicable in the circumstances as of the date in question.

            Governing   Documents   means  the   certificate   or   articles  of
incorporation  or  formation,  by-laws,  partnership  agreement,  joint  venture
agreement,  trust  agreement,  operating  agreement or other  organizational  or
governing documents of any Person.

            Governmental  Agency  shall  have the  meaning  set forth in Section
12.18.

            Guarantor means Bluegreen Corporation,  a Massachusetts corporation,
its successors and assigns.

            Guaranty  means  each  guaranty,  surety  agreement,   guaranty  and
suretyship agreement and/or other similar agreement executed by the Guarantor in
favor of Lender pursuant to which the Guarantor agrees to act as a guarantor for
the Obligations and any amendment, restatement,  extension or supplement thereto
and any new guaranty or similar  agreement  given in substitution or replacement
therefor  and any new  guaranty  or surety  agreement  by any other  Person with
respect to all or any part of the Obligations.

            Hazardous  Materials has the meaning set forth in the  Environmental
Agreement.

                                       4
<PAGE>

            Incipient  Default means any condition or event which,  after notice
or lapse of time or both,  would  constitute  an  Event of  Default  under  this
Agreement.

            Ingress and Egress Easement Agreement means that certain Ingress and
Egress  Easement  Agreement  between World Golf  Village,  Inc. and Vistana WGV,
Ltd.,  as  recorded  in the Public  Records of St.  Johns  County,  Florida,  as
amended, restated, extended or supplemented from time to time.

            Inspector has the meaning set forth in Section 12.21.

            Lease Income has the meaning set forth in Section 7.1(f).

            Legal  Requirements  means all federal,  state and local ordinances,
laws, regulations,  orders, judgments,  decrees,  determinations and other legal
restrictions  governing  the  Project,  the  Borrower,  the  Guarantor  or their
business or operations.

            Lender means Textron Financial Corporation,  a Delaware corporation,
its successors and assigns.

            Lender's  Mortgage or Mortgage  means that  certain  first  priority
Mortgage,  Assignment  of Rents and Security  Agreement  executed as of the date
hereof from the Borrower,  as mortgagor,  in favor of the Lender,  as mortgagee,
encumbering  the  Mortgaged  Property,   as  amended,   restated,   extended  or
supplemented from time to time.

            Loan means the revolving  construction loan facility in an amount up
to $12,500,000 to be extended by Lender to Borrower pursuant to this Agreement.

            Loan Account has the meaning set forth in Section 3.2.

            Loan Costs means all reasonable costs, expenses and fees incurred by
Lender in connection with the Loan, including without limitation,  those related
to negotiating, preparing, documenting, closing and enforcing this Agreement and
all other Loan Documents including, but not limited to:

      (a) the cost of preparing,  reproducing  and binding this  Agreement,  the
other Loan Documents and all exhibits and schedules thereto;

      (b) the legal fees, expenses and disbursements of Lender's counsel;

      (c) Lender's  out-of-pocket  expenses  (including fees and expenses of the
Lender's counsel) relating to any Advances, amendments, waivers or consents;

      (d) all  other  fees and  expenses  (including  fees and  expenses  of the
Lender's counsel) relating to any Advances, amendments, waivers or consents;

      (e) all  costs,  outlays,  legal  fees  and  expenses  of  every  kind and
character had or incurred in (1) the interpretation or enforcement of any of the
provisions of, or the creation,  preservation or exercise of rights and remedies
under,  any of the  Loan  Documents  including  the  costs  of  appeal  (2)  the
preparation  for,

                                       5
<PAGE>

negotiations regarding,  consultations concerning, or the defense or prosecution
of legal  proceedings  involving any claim or claims made or threatened  against
the Lender  arising out of this  transaction or the protection of the Collateral
securing  the Loan or Advances  made  hereunder,  expressly  including,  without
limitation,  the  defense  by  Lender  of any legal  proceedings  instituted  or
threatened  by any Person to seek to recover or set aside any  payment or setoff
theretofore,  received or applied by the Lender with respect to the Obligations,
and any and all  appeals  thereof;  and  (3)  the  advancement  of any  expenses
provided for under any of the Loan Documents;

      (f) all fees and expenses  relating to any escrow by the Title  Company or
any other escrow agent;

      (g) all costs and expenses  incurred by Lender under the Loan and all late
charges under the Loan;

      (h) all real and  personal  property  taxes and  assessments,  documentary
stamp and  intangible  taxes,  sales  taxes,  recording  fees,  title  insurance
premiums and other title  charges,  document  copying,  transmittal  and binding
costs,  appraisal  fees,  lien,  judgment and litigation  search costs,  fees of
architects,  engineers,  environmental  consultants,  surveyors  and any special
consultants,  construction  inspection  fees,  brokers fees,  escrow fees,  wire
transfer fees, and all out-of-pocket  expenses of Lender to conduct  inspections
or audits. Without limitation of the foregoing,  Borrower shall pay the costs of
UCC  and  other  searches,  UCC and  other  Loan  Document  recording  fees  and
applicable  taxes,  and  premiums on each title  insurance  policy  delivered to
Lender pursuant to this Agreement; and

      (i) all  reasonable  costs and expenses of Lender  related to any meetings
with  Obligors  or  other  Persons  related  to  the  transactions  contemplated
hereunder,  audits or inspections of Obligors or the Project  including  without
limitation travel expenses.

            Loan Documents means the Commitment,  this Agreement,  the Note, the
Guaranty,  the  Lender's  Mortgage,  the  Assignment  of  Property  Rights,  the
Assignment of Construction  Contract,  any document evidencing any assignment or
security interest described in Section 7.1, the Environmental Agreement, and all
documents now or hereafter executed in connection with the Loans or securing the
Obligations

            Loan Maturity Date means September 30, 2009.

            Management  Agreement  means the  Management  Agreement  between the
Association  and the  Manager for the  management  of the  Project,  as amended,
restated,  extended or  supplemented  from time to time,  and any new management
agreement   executed  in  its  place,  all  of  which  agreements   (other  than
non-material  revisions)  must be in form and  content  reasonably  approved  by

                                       6
<PAGE>

Lender.

            Manager  means  Bluegreen  Resorts  Management,   Inc.,  a  Delaware
corporation, and any replacement manager for the Project approved by Lender.

            Master   Declaration  means  that  certain  Master   Declaration  of
Covenants,  Conditions and Restrictions dated as of August 25, 1998 and recorded
in the Public Records of St. Johns County,  Florida, in Book 1345, Page 1586, on
September 3, 1998, as amended,  restated,  extended or supplemented from time to
time.

            Master  Property  means the real  property  and  existing  or future
improvements  and amenities  more  particularly  described in Exhibit "A" to the
Master Declaration.

            Maximum  Loan Amount  means  $12,500,000,  as further  described  in
Section 2.3 and subject to the restrictions set forth in Section 2.4.

            Mortgaged Property has the meaning set forth in Section 7.1(a).

            Northwest  Commercial  Declaration means that certain Declaration of
Covenants and  Restrictions  for Saint Johns Northwest  Commercial,  dated as of
July 24, 1996, and recorded in the Public Records of St. Johns County,  Florida,
in Book 1185, Page 649, as amended, restated, extended or supplemented from time
to time.

            Northwest  Master  Declaration  means that  certain  Declaration  of
Covenants and Restrictions for Saint Johns - Northwest Master,  dated as of July
24, 1996,  and recorded in the Public Records of St. Johns County,  Florida,  in
Book 1185, Page 598, as amended, restated, extended or supplemented from time to
time.

            Note means that certain  Secured  Promissory  Note dated as the date
hereof,  payable  to the  order of  Lender  further  evidencing  the  Borrower's
obligation  to repay the Loan and all  interest  thereon as  amended,  restated,
extended or supplemented from time to time.

            Obligations  means  all  payment  and  performance  obligations  and
liabilities of each Obligor to Lender as evidenced by the Note or otherwise owed
pursuant to the Loan Documents of every kind, nature and description,  direct or
indirect, absolute or contingent, due or to become due, contractual or tortious,
liquidated or  unliquidated,  regardless of how such  obligations or liabilities
arise,  including without limitation,  the obligation of Borrower to pay (a) the
principal of,  premium,  if any, on and interest on the Loan;  and (b) all fees,
costs, expenses, indemnities,  obligations and liabilities of each Obligor owing
at any time to Lender  under or in  respect  of this  Agreement  and each of the
other Loan Documents.

                                       7
<PAGE>

            Obligor means Borrower and Guarantor, individually.

            Obligors means Borrower and Guarantor, collectively.

            One to One Ratio shall have the meaning set forth in Section 10.23.

            Owner or Owners  means a  Purchaser  or  Purchasers  of a  Timeshare
Interest, the successive owner or owners of each Timeshare Interest so conveyed,
and the Borrower with respect to Timeshare Interests not so conveyed.

            Permitted Liens or Permitted  Exceptions shall have the meanings set
forth in Section 14.7 and Section 9.5, respectively.

            Person  means  an   individual,   a  government  or  any  agency  or
subdivision   thereof,  a  corporation,   partnership,   trust,   unincorporated
organization,  association,  joint stock company,  limited  liability company or
other legal entity.

            Phase 1 means the Existing Units within the two buildings  (numbered
3 and 4) and  related  facilities  which  make up a  portion  of  Phase 1 of the
Project.

            Phase 2 means the contemplated sixty (60) purpose-built Units in two
buildings (numbered 5 and 6) and related facilities to be constructed as part of
Phase 2 of the Project.

            Phase 2  Completion  Date with respect to the Work means the earlier
to occur of (a) the date of Completion of the Work for Phase 2 or (b) August 31,
2007 with respect to Phase 2.

            Phase 2 Cost Certificate shall have the meaning set forth in Section
11.2.

            Phase 2 Land means the land upon which the  improvements  to Phase 2
are being constructed,  as more particularly described in Exhibit "A-1" attached
hereto.

            Phase 2 Total  Budget  shall have the  meaning  set forth in Section
11.10.

            Phase 2 Work  means the  construction  of sixty  (60)  purpose-built
timeshare  Units  within Phase 2 of the Project and related  facilities  and the
installation of the site  development,  landscaping,  infrastructure,  fixtures,
furnishings  and soft  costs  related  thereto  as shown as costs on the Phase 2
Total Budget and being performed by the Contractor,  as further described in the
applicable Specifications for Phase 2.

            Phase means individually, Phase 1 or Phase 2.

            Phases mean collectively, Phase 1 or Phase 2.

            Project means  collectively,  the Existing Units,  the Phase 2 Land,
and all associated  Amenities owned by Borrower.  The Project presently consists
of Phase 1, and it is  contemplated  that  Phase 2, will be  constructed  on the
Phase

                                       8
<PAGE>

2 Land.

            Project  Contracts  means each of the agreements  listed on Schedule
10.18 and all other existing and future agreements  relating to the development,
operation,  common areas,  management,  marketing,  sales and maintenance of the
Mortgaged  Property,  to the extent the  amount to be  performed  after the date
hereof exceeds $50,000 per contract or agreement.

            Project Documents has the meaning set forth in Section 17.3.

            Public  Records means the public  records of St. Johns County in and
for the State of Florida.

            Public Report means collectively,  the public offering statement for
the  Project  and  the  approvals  or  registrations  for  the  Project,  in the
jurisdiction  in which the Project is located and in each other  jurisdiction in
which sales of Timeshare Interests are made or the Project is otherwise required
to be registered.

            Purchaser means a bona fide third-party purchaser for value (whether
one or more  persons) who has  purchased one or more  Timeshare  Interests  from
Borrower.

            Release  Payment  means each  Release  Payment as defined in Section
6.1(b)(ii).

            Release  Payments  mean all  Release  Payments as defined in Section
6.1(b)(ii).

            Released Property has the meaning set forth in Section 21.

            Request for  Construction  Advance  means a Request or Requests  for
Construction Advance as described in Section 2.6.

            Retainage Disbursement Requirements shall have the meaning set forth
in Section 8.5.

            Reservation System means  collectively,  the method,  arrangement or
procedure  including any computer network and software  employed for the purpose
of enabling or  facilitating  the  operation  of the system  which  enables each
Purchaser  or Club member to utilize his or her right to reserve a use period in
a Club  resort  including  the Project in  accordance  with the  provisions  and
conditions  set  forth  in the  Club  Documents  and a Unit  at the  Project  in
accordance with the Project  Documents in the event the  Reservation  System for
the Club is not operational at any time for whatever reason.

            Site Plan has the meaning set forth in Section 10.20.

            Special  Assessment  Agreement means that certain Special Assessment
Agreement that provides for construction of a convention center to be located in
the World Golf Village  development,  dated as of July 24, 2006, and recorded in
the Public Records of St. Johns County,  Florida, in Book 1185

                                       9
<PAGE>

Page 1907 on July 24, 2006, as amended, restated,  extended or supplemented from
time to time.

            Specifications    means   collectively,    the   final   plans   and
specifications  for the  Work to be  performed  on  Phase  2 of the  Project  as
submitted  to and  approved by Lender,  and all  amendments,  modifications  and
supplements  thereto and all new plans and specifications  with respect thereto,
all of which are subject to the prior  approval of Lender.  The Work for Phase 2
shall require separate  Specifications  which are applicable only to Phase 2, as
distinguished from the other Phases, and which are approved by Lender.

            State means the State of Florida.

            Subordination   Agreement  means  any  agreement  subordinating  the
obligations  owed by an Obligor to a creditor,  to the Obligations  owed by such
Obligor to Lender as required pursuant to Section 15.

            Substantial Completion shall occur when Lender obtains a certificate
of completion  executed by the Contractor and approved by the Inspector  stating
that the applicable Work for Phase 2 is substantially complete,  subject only to
a "punch  list"  designating  any  minor  incomplete  Work or other  performance
remaining to be done under the Construction Contract to accomplish Completion of
the Work and stating the sums necessary to accomplish Completion of the Work.

            Survey has the meaning set forth in Section 10.19.

            Tenant Leases has the meaning set forth in Section 7.1(d).

            Timeshare Act means the "Florida  Vacation  Plan and Timeshare  Act"
Chapter 721, Florida Statutes (2006, as amended).

            Timeshare  Declaration means that certain Declaration of Condominium
for Grande Villas at World Golf Village,  a  Condominium,  a Bluegreen  Vacation
Club Resort,  dated as of January 7, 2004, and recorded at Book 2126, Page 1051,
on January 23, 2004, in the Public Records of St. Johns County,  Florida,  as it
may be amended, restated or supplemented from time to time.

            Timeshare  Interest  means  a  real  property  interest  established
pursuant  to F.S.  Chapter  721;  TO WIT:  a right to occupy a  timeshare  unit,
coupled with a freehold  estate or an estate for years with a future interest in
a  timeshare  property  or  a  specified  portion  thereof;  more  specifically,
Timeshare  Interest means a timeshare concept whereby Units and the share of the
common  elements  assigned to the Units are conveyed  for a period of time,  the
purchaser  receiving a stated time period for a period of years;  together with,
at 12:00 noon on the first  Saturday in the year 2073,  a remainder  over in fee
simple as tenant in common with all other  Purchasers  of Timeshare  Interest in
such Units,  in that  percentage  interest  determined  and  established  by the
Timeshare  Declaration.  The term shall also mean an interest in a Unit pursuant
to section  718.103(22),

                                       10
<PAGE>

Florida Statutes.  Reference to a Timeshare Interest shall include the Timeshare
Interest and its appurtenant  timeshare period,  which consists of the period or
periods  of  time  when  a  Purchaser  is  afforded  the   opportunity   to  use
accommodations or facilities of the timeshare plan.

            Timeshare Loans means the loans granted by Borrower to Purchasers of
Timeshare  Interests  to  finance  the  acquisition  thereof  by  Purchasers  of
Timeshare Interests.

            Title  Company  means an  American  Land Title  Association  company
selected  by  Borrower  and  approved  by Lender  which is  authorized  and duly
licensed  to carry  on a title  insurance  business  in the  State in which  the
Project is  located.  The Title  Company  currently  used by  Borrower  is First
American Title Insurance Company.

            Title Policy ALTA extended coverage mortgagee's loan policy of title
insurance  issued by the Title  Company and  complying  with the  provisions  of
Section 17.16.

            Trust Agreement means that certain  Bluegreen  Vacation Club Amended
and Restated Trust Agreement dated as of May 18, 1994, as it may be amended from
time to time.

            Unit(s) means collectively, the sixty (60) purpose-built Units to be
constructed  as part of Phase 2, which Units shall be  committed to the Vacation
Timesharing Plan in accordance with the provisions of the Timeshare Declaration.

            Vacation  Timesharing  Plan means the  vacation  timesharing  regime
created  pursuant to the Timeshare Act to which Units in Phase 1 are subject and
to which  Units in Phase 2 shall be subject  and  pursuant  to which a Purchaser
receives by deed a Timeshare Interest, subject to the Timeshare Declaration.

            Work means the Phase 2 Work being performed on by the Contractor, as
more further described in the applicable Specifications for Phase 2.

            WSJ Prime  Rate  means the rate of  interest  published  in the Wall
Street  Journal  (Eastern  Edition)  under the  designation  "Money  Rates"  and
described as "Prime Rate" or "Base Rate on Corporate  Loans at Large U.S.  Money
Center Commercial Banks." If the rate so published is shown as a range of rates,
Lender  will use the highest  rate in such range as the WSJ Prime Rate.  If such
rate is no longer  published  or  available,  Lender  will  choose a  comparable
substitute  rate  based  upon  a  national  index,  selected  by  Lender  in its
discretion.

            1.2.  Construction.  Unless the  context of this  Agreement  clearly
requires otherwise, references to the plural include the singular, references to
the singular include the plural,  the term "including" is not limiting,  and the
term  "or"  has,  except  where  otherwise  indicated,   the  inclusive  meaning
represented  by the phrase  "and/or." The words  "hereof,"  "herein,"  "hereby,"
"hereunder,"  and similar terms in this  Agreement  refer to this Agreement as a
whole and not to any

                                       11
<PAGE>

particular provision of this Agreement.  An Event of Default shall "continue" or
be "continuing" until such Event of Default has been waived in writing by Lender
or cured and the cure accepted by Lender. Section, Subsection, clause, schedule,
and exhibit  references  are to sections,  subsections,  clauses,  schedules and
exhibits in this Agreement  unless  otherwise  specified.  Any reference in this
Agreement or in the Loan Documents to this Agreement,  any of the Loan Documents
or any other document or agreement  shall include all  alterations,  amendments,
changes,  extensions,  modifications,  renewals,  replacements,   substitutions,
supplements, and restatements thereto and thereof, as applicable.

            1.3.  Schedules  and  Exhibits.  All of the  schedules  and exhibits
attached  to this  Agreement,  as they  may  from  time  to time be  amended  or
restated, shall be deemed incorporated herein by reference.

            1.4.  Accounting  Principles.  Where the  character or amount of any
asset or liability or item of income or expense is required to be  determined or
any consolidation or other accounting computation is required to be made for the
purposes of this  Agreement,  the same shall be determined or made in accordance
with GAAP consistently  applied at the time in effect, to the extent applicable,
except where such  principles are  inconsistent  with the  requirements  of this
Agreement.

      2. The Loan.

            2.1.  General.  The Loan is a  construction  loan.  Subject to other
provisions,  conditions  and  restrictions  set  forth  in this  Agreement,  the
outstanding  principal  balance of the Loan shall at no time  exceed the Maximum
Loan Amount.

            2.2. Intentionally Omitted .

            2.3.   Construction  Loan.  Subject  to  the  other  provisions  and
conditions  of this  Agreement,  Lender  agrees,  from time to time  during  the
Construction Advance Period, to make Construction  Advances to the Borrower on a
revolving basis in an aggregate  principal  amount not to exceed  $12,500,000 at
any one time (the "Maximum Loan  Amount").  The  Construction  Advance  proceeds
shall be disbursed to reimburse Borrower for the Approved Costs for the Work.

            2.4. Advances.

                  (a) Intentionally Omitted.

                  (b) Revolving Credit Under  Construction  Loan. This Agreement
contemplates  an  extension  of credit to Borrower on a revolving  basis for the
Loan not to exceed the  Maximum  Loan  Amount at any time during the term of the
Loan.

                                       12
<PAGE>

                  (c) Restrictions on Construction  Advances.  Lender shall have
no obligation to make an Advance under the Loan: (i) more often than once during
any calendar  month,  (ii) in an amount not less than $50,000 for each  Advance,
(iii)  pursuant  to a  Request  for  Construction  Advance  received  after  the
expiration of the Construction  Advance Period,  or (iv) after the occurrence of
an Incipient Default or an Event of Default.

                  (d)  Additional  Restrictions  on  Advances.   Notwithstanding
anything to the contrary contained in Section 2, Lender shall have no obligation
to make any Advance under the Loan which would cause the  aggregate  outstanding
balance under the Loan to exceed (i) $12,500,000;  or (ii) 85% of the verifiable
costs to acquire Phase 2, costs of the Work performed and pay related costs, all
as approved by Lender.

            2.5. Intentionally Omitted.

            2.6. Requests for Construction  Advance.  Except for Advances to pay
Loan Costs and other  obligations  of Borrower  under the Loan  Documents,  each
Construction  Advance  shall be made  pursuant  to a  Request  for  Construction
Advance  submitted to Lender in the form attached as Exhibit C, with appropriate
insertions   and  duly   executed,   together   with  all  required   supporting
documentation. Each Request for Construction Advance must be submitted to Lender
at least ten (10)  Business Days prior to the date the  Construction  Advance is
requested to be made.

            2.7. Amounts in Excess of Maximum Loan Amount. Lender shall have the
right,  but not the  obligation,  to fund  amounts in excess of the Maximum Loan
Amount  from  time to time to pay  accrued  and  unpaid  interest,  to  complete
construction  of the Work, or to correct or cure any Event of Default.  Obligors
agree that the  correcting  or curing by Lender of an Event of Default shall not
cure the Event of Default under this Agreement. Such excess amounts funded shall
be deemed  evidenced by the Note to the fullest extent possible and then by this
Agreement,  shall bear  interest  at the  applicable  Default  Rate set forth in
Section 4.2 and shall also be secured by the Collateral,  the Lender's Mortgage,
the  Guaranty,  and all other  security and  collateral  for the Loan.  Borrower
hereby agrees to execute additional notes, mortgages,  and other additional Loan
Documents, and modifications thereto,  promptly upon request by Lender, in favor
of Lender,  evidencing and securing amounts funded in excess of the Maximum Loan
Amount.

            2.8.  Use of  Proceeds.  Advances  under  the  Loan  will be used by
Borrower solely for the purposes described in Section 2.3.

                                       13
<PAGE>

            2.9.  Closing.  The Closing  under this  Agreement  shall take place
effective as of the Closing  Date at such place as Lender may require,  provided
that all conditions for Closing have been satisfied.

            2.10.  Maximum  Relationship  Amount. The maximum amount outstanding
under this Loan combined with the maximum amount  outstanding under all loans to
Borrower,  Guarantor and  Affiliates of Borrower and Guarantor from Lender shall
not exceed $30,000,000.

      3. Loan Documents and Loan Account.

            3.1. Loan  Documents.  All Loan Documents  shall be  satisfactory in
form and  substance to Lender and Lender's  counsel.  Borrower's  obligation  to
repay the Loan  shall be  evidenced  by the Note,  and the Note shall be payable
with interest as provided herein. The Lender's Mortgage shall be a lien upon the
Mortgaged Property, subject only to the Permitted Liens.

            3.2. Loan Account. Lender will open and maintain on its books a loan
account (the "Loan  Account")  with respect to Advances  made,  repayments,  the
computation  and  payment of  interest  and fees and the  computation  and final
payment of all other  amounts due and sums paid to Lender  under this  Agreement
and the Loan. Lender shall deliver monthly statements regarding the Loan Account
to  Borrower.  Except in the case of  manifest  error in  computation,  the Loan
Account will be conclusive  and binding on Borrower as to the amount at any time
due to Lender  from  Borrower  under this  Agreement  and the Note as an account
stated, except to the extent that Lender receives a written notice from Borrower
of any specific exceptions of Borrower thereto within thirty (30) days after the
date the applicable Loan Account statement has been received by Obligor.

      4. Interest Rate.

            4.1.  Primary  Interest  Rate.  Until the  occurrence of an Event of
Default and after same is cured (if applicable) and the cure accepted by Lender,
interest  shall  accrue  and be  payable  on  the  average  monthly  outstanding
principal balance of the Loan as follows:

                  (a) From the  Closing  Date  until  the first day of the month
following the month during which the Closing Date occurs, at a yearly rate which
is equal to one and  one-quarter  percent (1.25%) per annum in excess of the WSJ
Prime Rate in effect on the Closing Date, and

                  (b) On the first day of the second month  following  the month
during  which  the  Closing  Date  occurs  and on the  first  day of each  month
thereafter,  the yearly  rate at which  interest  shall be payable on the unpaid
principal balance of the Loan shall be increased or decreased to a rate which is
equal to one and  one-

                                       14
<PAGE>

quarter  percent  (1.25%) per annum in excess of the WSJ Prime Rate in effect on
such date.

                  (c)  Notwithstanding  anything  herein  or  elsewhere  to  the
contrary  the interest  rate  accruing and payable on the Loan shall not be less
than one and  one-quarter  percent  (1.25%) per annum in excess of the WSJ Prime
Rate in effect at such time.

            4.2.  Default  Rate.  From and after the  occurrence  of an Event of
Default until cured (if  applicable)  and the cure accepted by Lender,  interest
shall accrue and be payable on the unpaid principal  balance of the Loan and all
other  Obligations under the Loan Documents at a rate (the "Default Rate") which
is four (4) percentage  points higher than the rate provided in Section 4.1. Any
judgment  obtained  for sums due under the Note or other  Obligations  under the
Loan  Documents  will accrue  interest at the Default Rate until paid.  Obligors
acknowledge  and  agree  that the  Default  Rate is  reasonable  in light of the
increased risk of collection after occurrence of an Event of Default.

            4.3.  Calculation  of Interest.  Interest will accrue as of Lender's
wiring of funds  through  Lender's  receipt of  repayment  of the Loan.  Payment
received by Lender after noon Eastern Time shall not be credited  until the next
succeeding  Business Day.  Interest will be calculated on the basis of a year of
three  hundred  sixty  (360) days and  charged  upon the  actual  number of days
elapsed.

            4.4. Limitation of Interest to Maximum Lawful Rate. Lender expressly
disclaims  any intent to contract for,  charge or receive  interest in an amount
which  exceeds the highest  lawful  rate.  All sums paid or agreed to be paid to
Lender for the use,  forbearance  or detention of the  indebtedness  incurred by
Borrower  hereunder  shall,  to the  extent  permitted  by  applicable  law,  be
amortized,   prorated,   allocated  and  spread  throughout  the  term  of  such
indebtedness  until  payment in full,  so that the rate or amount of interest on
account of such indebtedness does not exceed the usury ceiling from time to time
in effect and applicable to the Loan.

      5. Fees.

            5.1. Loan Fee.  Borrower agrees to pay to Lender a loan fee equal to
$12,500,000  which is fully earned by Lender and is due and payable in full upon
execution of this  Agreement.  Such fee shall not be  refundable  in whole or in
part, even if the full Maximum Loan Amount is not advanced.  Lender acknowledges
receipt of a $10,000  deposit from  Borrower  which will be applied by Lender to
pay a portion of the loan fee.

            5.2. Late Charge.  In the event that any payment  required under the
Loan (other than the sum due upon maturity or earlier  acceleration of the Loan)
is not  received  by Lender  within ten (10) days  after the due date,  Obligors
shall pay a

                                       15
<PAGE>

late charge  equal to five  percent  (5%) of the total amount of such payment to
defray the  expenses  incident  to handling  such  delinquent  payments,  and to
compensate  Lender  for the harm and  damages  related  to such  late  payments.
Obligors  hereby  acknowledge and agree that such late charges are reasonable in
light of the  anticipated  and the actual harm caused by the late payments,  the
difficulties  of proof of loss,  harm and  damages,  and the  inconvenience  and
non-feasibility of Lender otherwise obtaining an adequate remedy.

            5.3. General.  All of the fees described above are not refundable in
whole or in part even if the full amount of the Loan is not advanced.  Lender is
irrevocably  authorized to advance the sums  necessary to pay all or any portion
of such fees when due and payable to itself  from the  proceeds of an Advance or
as an Advance under the Loan.

      6. Payments.

            6.1. General.  Borrower agrees punctually to pay or cause to be paid
to the Lender all principal and interest due under the Note or in respect of the
Loan. Borrower shall make the following payments on the Loan:

                  (a)  Interest.  Interest  only  on the  outstanding  principal
balance  of the Loan owed  during  the prior  calendar  month  shall be  payable
monthly on the twentieth (20th) day of each calendar month,  commencing on April
20, 2007.  The April 20, 2007 interest  payment shall include  interest  accrued
between the Closing Date and March 31, 2007.

                  (b) Principal.

                      (i) The entire outstanding  principal balance of the Loan,
all accrued  and unpaid  interest  thereon and all other sums due in  connection
therewith shall be payable in full, if not earlier paid pursuant to the terms of
this Agreement and of the Loan Documents, on the Loan Maturity Date.

                      (ii) In addition to all other payments required, upon  the
sale (and  expiration of any  applicable  rescission  period) of each  Timeshare
Interest,  Borrower shall make a principal  reduction  payment on the Loan in an
amount equal to 25% of the sales price per sale of each Timeshare  Interest sold
(each, a "Release  Payment," and  collectively,  the "Release  Payments").  Each
Release  Payment shall be made by the 20th day of the calendar  month  following
the month of the sale (and  expiration of any applicable  rescission  period) of
the applicable Timeshare Interest. The Release Payment shall be redetermined and
adjusted  either to increase or decrease the amount of the Release  Payment,  as
appropriate,  no more often than once at the end of each  consecutive  three (3)
month period following the execution of this Agreement, as reasonably determined
by Lender so that upon the sale of 85% of the  Timeshare  Interests  in Phase 2,
the Loan will be repaid in full.

                                       16
<PAGE>

                  (iii)  Notwithstanding  anything  herein or  elsewhere  to the
contrary,  the aggregate principal reduction payments from all sources made with
respect to the Loan must equal the following amounts as of the following dates:

                                               Aggregate Principal
              Date                                   Payments
              ----                                   --------

              March 31, 2008                        $2,000,000

              September 30, 2008                    $4,000,000

              March 31, 2009                        $8,000,000

              Loan Maturity Date           Remaining Outstanding Balance

      To the  extent  such  payments  have not been made as a result of  Release
Payments,  Borrower  shall make such payments from other funds on the applicable
date set forth above.

            6.2.  Reinstatement  of  Obligations.  Obligors  agree that,  to the
extent any payment or payments are made on any  Obligations  and such payment or
payments,  or any part thereof,  are  subsequently  invalidated,  declared to be
fraudulent or preferential, set aside or are required to be repaid to a trustee,
receiver,  or any other Person under any  bankruptcy  act, state or federal law,
common law or equitable  cause,  then to the extent of such payment or payments,
the  Obligations  or part thereof  hereunder  intended to be satisfied  shall be
revived and  continued  in full force and effect as if said  payment or payments
had not been made.

            6.3. Prepayment. The Loan may be prepaid without penalty or premium.

            6.4. Indemnity.  Obligors agree to indemnify Lender against any loss
or expense  which  Lender  sustains  or incurs as a  consequence  of an Event of
Default, including,  without limitation, any failure of Obligors to pay when due
(at maturity, by acceleration or otherwise) any principal,  interest, fee or any
other  amount due under this  Agreement or the other Loan  Documents.  If Lender
sustains or incurs any such loss or expense it will  notify  Obligors in writing
of the amount determined in good faith by Lender to be necessary to indemnify it
for the loss or  expense.  Such  amount  will be due and  payable by Obligors to
Lender  within five (5)  Business  Days after  receipt by Obligor of a statement
setting forth a brief  explanation of and its calculation of such amount,  which
statement shall be conclusively deemed correct absent manifest error. Any amount
payable by

                                       17
<PAGE>

Obligors  under this Section will bear interest at the Default Rate from the due
date until paid, both before and after judgment.

      7. Security; Guaranty.

            7.1.  Security.  The  Obligations  shall be secured by, and Borrower
hereby  grants to Lender a security  interest  in, all of the  following  to the
extent of  Borrower's  right,  title and  interest  therein  (collectively,  the
"Collateral"):

            (a) The Phase 2 Land, the Units and the Timeshare Interests thereon,
together with all improvements, amenities, fixtures, leases, rents, common areas
and common elements, all easements, rights-of-way,  privileges and appurtenances
belonging or in any way appertaining thereto or which are encumbered by Lender's
Mortgage (collectively, the "Mortgaged Property").

            (b) All  existing  and  future  equipment,  furnishings,  inventory,
supplies,   appliances,   machinery,   plumbing,   heating,   ventilation,   air
conditioning  system, and fixtures,  accounts,  chattel paper,  contract rights,
documents,  instruments, and general intangibles at any time located at, arising
out of the use of, and/or used in connection with the operation of the Mortgaged
Property,  with  appropriate  non-disturbance  language  relating to common area
equipment, fixtures and furniture.

            (c) All existing and future payment and  performance  bonds (if any)
of the Contractor with respect to the Work.

            (d)  All   existing   and  future   leases,   subleases,   licenses,
concessions,  entry fees, or other agreements which grant a possessory  interest
in and to, or the right to use the Mortgaged  Property,  or any portion  thereof
(collectively, the "Tenant Leases").

            (e)  All   existing   and  future   leases,   subleases,   licenses,
concessions, entry fees or other agreements which grant a possessory interest in
and to,  or the  right to use,  the  commercial  space,  or any  portion  of the
Mortgaged Property thereof (the "Commercial Leases").

            (f)  All  of  the  existing  and  future  rents,  revenues,  income,
proceeds,  royalties,  profits and other  benefits  payable for using,  leasing,
licensing, possessing, operating from or in, or otherwise enjoying the Mortgaged
Property  pursuant to the Tenant Leases and the  Commercial  Leases,  including,
without limitation,  damages received upon the occurrence of a default under any
of the Tenant Leases and the  Commercial  Leases and all proceeds  payable under
any  policy  of  insurance   covering   loss  of  rents  with  respect   thereto
(collectively,  the "Lease  Income").  Borrower  shall be  entitled to all Lease
Income for working capital purposes unless an Event of Default has occurred.

                                       18
<PAGE>

            (g) All other existing and future agreements to which Borrower is or
becomes a party or holds any interest therein and which in any way relate to the
use, occupancy,  maintenance or enjoyment of the Mortgaged Property,  including,
but not  limited  to, all  Project  Contracts,  utility  contracts,  maintenance
agreements,  management agreements and service contracts, the Ingress and Egress
Easement  Agreement,  Special Assessment  Agreement,  the Declarations,  and any
agreement  guaranteeing  the performance of the obligations  contained in any of
the foregoing agreements, all as they relate to the Mortgaged Property.

            (h)  All  books,  records,  ledger  cards,  files,   correspondence,
computer  tapes and disks,  as all of the  foregoing  pertain  to the  Mortgaged
Property.

            (i)  All  hardware  used  in the  management,  sales,  construction,
servicing or operation of the Mortgaged Property.

            (j) All intellectual property,  software and other personal property
related to the Mortgaged  Property solely owned by Borrower  including,  without
limitation  to the extent  assignable,  the naming  rights to "Grande  Villas at
World  Golf  Village,  a  Condominium",   and  specifically  excluding,  without
limitation, any such intellectual property, software and personal property owned
by Guarantor or any Affiliate.

            (k) To the  extent  permissible  by  law,  any  existing  or  future
development agreements for the Project.

            (l) All existing and future  development or  construction  contracts
between  Borrower,   Guarantor,  and  any  architect,   planner,  contractor  or
sub-contractor together with payment and performance bonds related to the Work.

            (m) Any and all proceeds of the foregoing.

      All  liens  and  security  interests  shall be first  priority  liens  and
security  interests.  Borrower and Lender hereby agree that this Agreement shall
be deemed to be a security  agreement under the Uniform  Commercial Codes of the
States of Rhode Island and Florida. Accordingly, in addition to any other rights
and remedies available to the Lender hereunder, Lender shall have all the rights
of a secured party under the Rhode Island and Florida Uniform Commercial Codes.

      The  above-described  liens and security  interests  shall not be rendered
void by the fact that no Obligations  exist as of any particular date, but shall
continue  in full force and  effect  until all  Obligations  have been fully and
finally  paid,  performed and  satisfied,  Lender has no agreement or commitment
outstanding  pursuant  to which  Lender  may  extend  credit  to or on behalf of
Borrower and Lender has executed termination statements or releases with respect
thereto.

                                       19
<PAGE>

      Notwithstanding  the foregoing the Mortgaged Property and Collateral shall
not include the Released  Property,  the Reservation System or any rights to the
name Bluegreen or Bluegreen Vacation Club or any variation thereof.

            7.2. Cross-Default. An Event of Default hereunder shall constitute a
default under any other loan documents  between Borrower or Guarantor and Lender
and vice versa.

            7.3.  Guaranty.  The lien free Completion of the Work and the prompt
payment  and  performance  of  all  Obligations  shall  be  unconditionally  and
irrevocably guaranteed by Guarantor.

            7.4. Additional Documents and Future Actions.  Borrower will, at its
sole cost,  take such  actions  and  provide  Lender from time to time with such
agreements,  financing  statements  and  additional  instruments,  documents  or
information  as Lender may in its  discretion  deem  necessary  or  advisable to
perfect,  protect, maintain or enforce the security interests in the Collateral,
to permit  Lender to protect or enforce its  interest in the  Collateral,  or to
carry  out the  terms of the Loan  Documents.  Borrower  hereby  authorizes  and
appoints  Lender and any  officer of Lender as its  attorney-in-fact,  with full
power of  substitution,  to take such  actions as Lender may deem  advisable  to
protect the Collateral and its interests  thereon and its rights  hereunder,  to
execute  on  Borrower's   behalf  and  file  at  Borrower's   expense  financing
statements,  and amendments thereto, in those public offices deemed necessary or
appropriate  by  Lender  to  establish,  maintain  and  protect  a  continuously
perfected  security  interest in the  Collateral,  and to execute on  Borrower's
behalf such other  documents and notices as Lender may deem advisable to protect
the Collateral and its interests  therein and its rights  hereunder.  Such power
being coupled with an interest is irrevocable.

            7.5.  Location of  Collateral.  Borrower  agrees  that all  tangible
Collateral  which is not  delivered to Lender  pursuant to this  Agreement  will
remain,  at all times,  at  Borrower's  business  location at the  Project,  and
Borrower may not  transfer  such  Collateral  from such  premises  other than in
connection  with the  ordinary  course of  business  without  the prior  written
approval of Lender.

            7.6.  Insurance and  Protection of  Collateral.  Borrower  agrees to
maintain and pay for insurance upon the Mortgaged  Property as  contemplated  by
the Timeshare  Declaration  as evidenced by the  Agreement to Provide  Insurance
during the construction of Work at Phase 2.

      8. Funding Procedures.

            8.1.  General.  The funding of Advances shall be in accordance  with
such   procedures  as  Lender  may  require,   including   without   limitation,
disbursement  through the Title Company or an escrow agent  acceptable to Lender
if Lender so requires.

                                       20
<PAGE>

            8.2.   Disbursement   Agent.  A  disbursement  agent  for  the  Loan
acceptable to Lender (the  "Disbursement  Agent") shall be retained by Lender at
Borrower's  reasonable cost and expense. The Disbursement Agent shall review and
verify all Requests for Construction  Advance and all other information required
under  Section 18 for  Construction  Advances and all other  information  deemed
necessary  by Lender  related to the  progress of the Work.  Lender and Borrower
agree that the Disbursement  Agent at Lender's  request shall disburse  Advances
directly to Title Company, Contractor or Subcontractors.  The Disbursement Agent
may be the Title  Company  or other  person or  entity  acceptable  to Lender or
Lender's personnel.  If Lender's personnel act as Disbursement  Agent,  Borrower
shall  still be  responsible  for all  reasonable  costs  and  expenses  related
thereto.

            8.3.  Payment of Bills.  Lender shall be under no duty or obligation
to ascertain whether Borrower or the Disbursement Agent has used or will use the
Loan proceeds for the payment of bills  incurred by Borrower in connection  with
the Work.  Payment of all bills for labor and materials in  connection  with the
Work shall be Borrower's  responsibility,  and Lender's sole obligation shall be
to advance the  proceeds of the Loan  subject  to, and in  accordance  with this
Agreement.  At no time shall Lender be obligated to disburse  funds in excess of
amounts  recommended  by the  Inspector.  Borrower  is  solely  responsible  for
obtaining any permanent  financing,  bridge financing,  or other financing which
may be necessary to repay the Loan on or prior to the Loan Maturity Date.

            8.4.  Construction Loan Portion.  Loan proceeds for the items and in
the  maximum  amounts  listed  on the  Phase 2 Cost  Certificate  shall  only be
disbursed at such time as Lender (or the Disbursement  Agent, as applicable) has
received a Request for Construction  Advance and documents  required pursuant to
Section 18 and Borrower  has  provided  Lender (or the  Disbursement  Agent,  as
applicable) with such other information that Lender (or the Disbursement  Agent,
as  applicable)  shall  require to evidence  that all Work  covered by each such
Request for Construction Advance has been completed.

            8.5. Retainage;  Conditions Precedent to Final Disbursements.  Funds
held by Lender as retainage  shall be disbursed by Lender upon  compliance  with
the  requirements  set forth in this Subsection 8.5 and the requirements for all
other   disbursements   as  set  forth  above   (collectively,   the  "Retainage
Disbursement  Requirements").  The Retainage  Disbursement  Requirements for the
Work shall include:

                  (a)  Occupancy  Permits.  Receipt  by  Lender of a copy of the
final permits and approvals  necessary or required  from all  authorities  whose
approval is required for the lawful use,  occupancy  and operation of Phase 2 of
the Project after completion of the Work.

                                       21
<PAGE>

                  (b) Final Releases of Lien: Contractor's Affidavit. Receipt by
Lender of a "Conditional  Waiver and Release Upon Final Payment" executed by the
Contractor and all  Subcontractors  performing  work or supplying  materials and
paid for by such retainage Advance in form and content  acceptable to Lender and
in conformance with the Applicable Mechanics Lien Law, together with any and all
additional  affidavits of all such parties sufficient in the opinion of Lender's
counsel to comply with the Applicable  Mechanics Lien Law, and to remove any and
all mechanics' and materialmen's  liens (inchoate or otherwise)  affecting title
to the Project, which might arise related to such work or materials.

                  (c)  Certificates  of Completion.  Certificates of Substantial
Completion for the Work utilizing  customary AIA forms or the equivalent thereof
signed by the Architect, Contractor and Borrower.

                  (d) Other Evidence.  Such other evidence as Lender may require
to  establish  that the Work to be paid with  such  retainage  Advance  has been
completed in compliance with all applicable zoning and other requirements of the
public authorities having jurisdiction, including but not limited to, compliance
with all applicable Legal Requirements.

                  (e) As-Built  Plans.  Two (2) sets of detailed  as-built plans
related  to the Work must be  submitted  to Lender  promptly  after such Work is
completed,  but in no event later than two (2) months  from the  issuance of the
Certificates  of  Substantial  Completion  for the  Work,  which  plans  must be
approved and identified as such in writing by Borrower,  the Architect,  and the
Contractor,  and must include plans for architectural,  structural,  mechanical,
plumbing, electrical and all site development (including storm drainage, utility
lines and landscaping)  work.

                  (f) As-Built Survey.  As to the final Advance under the of the
Loan, receipt by Lender of two (2) originals of a satisfactory "As-Built" Survey
prepared by a licensed surveyor satisfactory to Lender and the Title Company, in
accordance  with the  plans and  showing  all of the  applicable  Units and each
applicable building in place, including, without limitation, striping of parking
areas,  a statement as to the number of parking spaces and such other matters as
Lender  shall  require  ("As-Built  Survey").  The survey  shall be  prepared in
accordance  with the  Standards  set  forth by  ALTA/ACSM  1988  Minimum  Survey
Requirements,  shall be  certified  to Lender  and the Title  Company  and shall
include a narrative metes and bounds or platted description of the boundaries of
the Mortgaged  Property,  the area of the Mortgaged  Property and of each of the
applicable Phase 2 Units and buildings 5 and 6 (then completed) and the location
and dimensions of all easements and  improvements.  The surveyor must include on
the As-Built Survey a signed  statement  certifying the existence or a narrative
statement  certifying the existence or nonexistence of any encroachment  from or
onto the Mortgaged Property and must include the date of the As-Built Survey and
the surveyor's  registration

                                       22
<PAGE>

number and seal and such other matters as the Title Company may require, in form
and substance satisfactory to Lender and the Title Company.

                  (g) Insurance. Insurance coverage shall have been broadened to
include  all  forms of  insurance  related  to the  Mortgaged  Property,  and as
reasonably  required by Lender in form  satisfactory  to Lender,  subject to the
terms of the Timeshare Declaration and the Agreement to Provide Insurance.

                  (h)  Exception.  Notwithstanding  the foregoing  restrictions,
Lender may at its  discretion  release the  specific 10%  retainage  amounts for
individual  line  items set forth in the Phase 2 Cost  Certificate  prior to the
satisfaction of all of the Retainage Disbursement  Requirements,  provided that,
(i) no  Incipient  Default or Event of Default  has  occurred,  (ii) each of the
Subcontractors being paid such retainage amounts executes and delivers to Lender
a "Conditional  Waiver and Release Upon Final Payment" and (iii) all of the Work
described  in such  line  item  has  been  completed  and  Lender  has  received
certifications from Borrower,  Contractor,  Inspector (or Lender's  Construction
Consultant) and Architect  confirming such  completion,  all in form and content
acceptable to Lender.

            8.6.  Deposit  of Funds  Advanced/Advances  to  Disbursement  Agent,
Architect, Contractor and Subcontractors. Lender, at its option, may make any or
all Construction  Advances directly to the Disbursement  Agent (for disbursement
to Borrower,  Contractor,  Architect or any  Subcontractor) or to the Contractor
and any  Subcontractor.  The execution of this  Agreement by Borrower  shall and
hereby does constitute an irrevocable  direction and  authorization to Lender to
so advance the funds. No further direction or authorization  from Borrower shall
be necessary  to warrant such direct  advances to the  Disbursement  Agent,  the
Contractor,  the  Architect  or any  Subcontractor  and  all  such  Construction
Advances shall satisfy completely  Lender's  obligations  hereunder and shall be
secured by the  Collateral  as fully as if made to Borrower,  regardless  of the
disposition thereof by the Disbursement Agent, the Contractor,  the Architect or
any  Subcontractor.  Lender  shall  assume no  liability  under the  Architect's
Contract,  Construction Contract or any Subcontract by virtue of directly paying
the Architect, Contractor or any Subcontractor.

            8.7.  Advances Do Not Constitute a Waiver.  No Construction  Advance
shall  constitute  a waiver of any  condition  of  Lender's  obligation  to make
further Construction Advances.

      9.  Representations and Warranties.  As an inducement to Lender to advance
funds to  Borrower,  Borrower  and  Guarantor  hereby,  jointly  and  severally,
represent and warrant to Lender as follows:

            9.1. Organization; Power.

                                       23
<PAGE>

                  (a) Borrower. Borrower (i) is a corporation duly incorporated,
validly  existing in good standing under the laws of the State of Florida;  (ii)
is duly qualified to do business as a foreign  corporation  and in good standing
under the laws of each  jurisdiction  where the character of its  property,  the
nature  of  its  business  or the  performance  of its  obligations  under  this
Agreement makes such qualification necessary,  except where the failure to be so
qualified will not have a material adverse effect on its business or its ability
to perform its  obligations  under this  Agreement or any other Loan Document to
which  it is a  party  or  under  the  transactions  contemplated  hereunder  or
thereunder; and (iii) has all requisite corporate power and authority to own its
properties,  to conduct its business,  to execute and deliver this Agreement and
all documents and transactions  contemplated hereunder and to perform all of its
obligations  under this  Agreement  and any other Loan Document to which it is a
party or under the transactions contemplated hereunder or thereunder.

                  (b)   Guarantor.   Guarantor   (i)  is  a   corporation   duly
incorporated,  validly  existing  and in good  standing  under  the  laws of the
Commonwealth  of  Massachusetts;  (ii) is duly  qualified  to do  business  as a
foreign  corporation  and in good standing  under the laws of each  jurisdiction
where  the  character  of  its  property,  the  nature  of its  business  or the
performance of its  obligations  under this Agreement  makes such  qualification
necessary  except where the failure to be so qualified  will not have a material
adverse effect on its business or its ability to perform its  obligations  under
this Agreement or the Guaranty;  and (iii) has all requisite corporate power and
authority to own its properties, to conduct its business, to execute and deliver
this Agreement and the Guaranty and to perform all of its obligations under this
Agreement and the Guaranty.

                  (c) Association.  The Association is a non-profit  corporation
duly  organized,  validly  existing and in good  standing  under the laws of the
State of  Florida,  having  full  power and  lawful  authority  to  perform  its
obligations  under  the  Declarations  and  carry on its  business  as now being
conducted or as proposed to be conducted.

                  (d)  Manager.  Manager is a  corporation,  duly  incorporated,
validly  existing and in good standing  under the laws of the State of Delaware,
duly licensed in Florida as required, and having full power and lawful authority
to act as the  Manager of the  Project,  to perform  its  obligations  under the
Management  Agreement and to carry on its business as now being conducted and as
proposed to be conducted.

            9.2.  Authorization;  No  Legal  Restrictions;  No  Breach  of Other
Agreements.  The  execution,  delivery and  performance  by Borrower of the Loan
Documents has been duly authorized by all necessary corporate action by Borrower
and does not and will not: (i) violate any  provision of the  organizational  or
governing documents of Borrower, or any agreement, law, rule, regulation, order,

                                       24
<PAGE>

writ, judgment,  injunction,  decree, determination or award presently in effect
to which  Borrower  is a party or is  subject;  (ii)  result in, or require  the
creation or imposition of any Lien upon or with respect to any asset of Borrower
other  than  Liens  in favor  of  Lender;  or  (iii)  result  in a breach  of or
constitute a default by Borrower under, any indenture,  loan or credit agreement
or any other agreement, document, instrument or certificate to which Borrower is
a party or by which it or any of its assets are bound or affected.

            9.3. Approvals;  Licenses, Etc. No approval,  authorization,  order,
license,  permit,   franchise  or  consent  of  or  registration,   declaration,
qualification  or filing  with,  any  governmental  authority  or other  Person,
including  without  limitation,  the  Division  or  Association  is  required in
connection  with the  execution  and  delivery  by  Borrower  of any of the Loan
Documents.

            9.4. Enforceability.  The Loan Documents constitute legal, valid and
binding obligations of Borrower, enforceable against Borrower in accordance with
their respective terms.

            9.5. Title.  Borrower has and will have good and marketable title to
the  Collateral,  free and  clear of any  Lien,  security  interest,  charge  or
encumbrance  except for the security  interests created by this Agreement or any
Loan  Document or otherwise  created in favor of Lender and the  exceptions  set
forth  in  the  Title   Policy   provided   Lender   (collectively,   "Permitted
Exceptions").  Borrower has good and marketable title to the Timeshare Interests
comprising a portion of the Mortgaged Property,  and all rights,  properties and
benefits  appurtenant to or benefiting them, subject to the Permitted Exceptions
and the condominium timeshare and development documents established by Borrower,
subject to Lender's approval.

            9.6. Liens.  The execution and delivery of the Loan  Documents,  the
filing of the UCC-l Financing  Statement's with the Florida Secured Transactions
Registry and the recording of the Mortgage,  the  Assignment of Property  Rights
and a UCC-1  Financing  Statement  in the Public  Records of St.  Johns  County,
Florida  will  constitute  in favor of Lender a valid and  perfected  continuing
first priority security interest in the Collateral.  Lender is not and shall not
be  required  to take,  and  Borrower  has taken any and all  required  steps to
protect  Lender's  security  interests in the  Collateral  and Lender is not and
shall  not be  required  to  collect  or  realize  upon  the  Collateral  or any
distribution  of  interest  or  principal,  nor shall  loss of or damage to, the
Collateral release Borrower or Guarantor from any of the Obligations.

            9.7.  Financial  Statements and Financial  Condition.  The financial
statements of Obligors  fairly present the respective  financial  conditions and
results of  operations of Borrower and Guarantor as of the date or dates thereof
and for the periods covered thereby. There were no material liabilities,  direct
or indirect,  fixed

                                       25
<PAGE>

or  contingent,  of  Borrower  or  Guarantor  as of the dates of such  financial
statements which were not reflected therein or in the notes thereto,  which have
not  otherwise  been  disclosed to Lender in writing or  otherwise  set forth in
Guarantor's  SEC  filings.  Except  for any such  changes  heretofore  expressly
disclosed in writing to Lender, there has been no material adverse change in the
respective  financial  conditions  of Borrower or Guarantor  from the  financial
conditions shown in their respective financial  statements,  nor has Borrower or
Guarantor  incurred  any  material  liabilities,  direct or  indirect,  fixed or
contingent,  which are not shown in their  respective  financial  statements  or
reflected in the notes thereto.

      Borrower  is able to pay all of its  debts as they  become  due.  Borrower
shall  maintain  such  solvent  financial   condition,   giving  effect  to  the
Obligations, as long as Borrower is obligated to Lender under this Agreement, or
in any other manner whatsoever.  Borrower's obligations under this Agreement and
under the Loan  Documents  will not render  Borrower  unable to pay its debts as
they become due. The present fair market value of  Borrower's  assets is greater
than the amount required to pay its respective total liabilities.

            9.8.  Taxes.  Except as set forth on Schedule  9.8: (a) Borrower has
paid and will pay in full all real property,  personal property,  income, sales,
ad valorem and other taxes and  assessments  against the Mortgaged  Property and
the Collateral or otherwise payable by Borrower,  (b) Borrower knows of no basis
for any additional  taxes or  assessments  against the Mortgaged  Property,  the
Collateral or Borrower;  (c) Borrower has filed all tax returns required to have
been filed by then and has caused  Association to file all tax returns  required
to have been filed by then,  and (d) has paid or caused  Association  to pay all
taxes  shown to be due and  payable  on such  returns,  including  interest  and
penalties,  and all other taxes which are payable by it or  Association,  as the
case may be, to the extent the same have become due and payable.

      With respect to real estate taxes  against the  Mortgaged  Property,  each
Unit will have a separate tax lot number and each Unit is  separately  billed by
the  applicable  governmental  entity  for real  estate  taxes.  Such  bills are
received  by the  Association.  The  Association  sends bills to each Owner of a
Timeshare  Interest  or  Vacation  Trust,  Inc.,  a Florida  corporation  in its
capacity as trustee under the Club's Trust  Agreement for such Owner's  pro-rata
share of the real estate taxes assessed and billed to the applicable Unit.

      To the extent that the  Association  holds  insufficient  funds to pay any
real estate taxes for the  Mortgaged  Property  then due and  payable,  Borrower
(during  the  time  it  is  maintaining   direct  or  indirect  control  of  the
Association) will pay the amount of such deficiency to the Association to enable
the  Association to pay all real estate taxes related to the Mortgaged  Property
when due and prior to the incurrence of any penalties. Borrower will comply with
the  above-described

                                       26
<PAGE>

procedures and will not amend,  modify or terminate such procedures  without the
prior written consent of Lender.

            9.9. Subsidiaries;  Affiliates and Capital Structure.  Except as set
forth on Schedule 9.9, Borrower has no subsidiaries or Affiliates which have any
involvement  or interest  in the  Mortgaged  Property in any way.  Borrower is a
wholly-owned  subsidiary  of  Guarantor.  None of the owners of any interests in
Borrower are parties to any proxies,  voting trusts,  shareholders agreements or
similar  arrangements  pursuant to which voting authority,  rights or discretion
with respect to Borrower is vested in any other Person.

            9.10. Litigation  Proceedings,  Etc. Except as described on Schedule
9.10, there are no actions, suits, proceedings, orders or injunctions pending or
threatened against or affecting Borrower, the Guarantor, the Mortgaged Property,
the  Collateral  or the  Association  at law or in  equity,  or before or by any
governmental  authority or other  tribunal which if adversely  determined  would
have a  material  adverse  effect on their  ability to  perform  hereunder  with
respect to the  Project.  Borrower  has not  received any notice from any court,
governmental  authority or other tribunal  alleging that Borrower or the Project
has  violated  the  Timeshare  Act,  the  Condominium  Act,  any of the rules or
regulations  thereunder,  the Project  Contracts,  or any other applicable Legal
Requirements, agreements or arrangements.

            9.11. Licenses;  Permits; Etc. Borrower, the Mortgaged Property, the
Association,  Borrower's  Affiliates  involved in the operations of the Project,
and, to the best of  Borrower's  knowledge  after  diligent  inquiry,  all other
Persons  involved in the  operations  of the portion of the  Mortgaged  Property
owned by  Borrower,  possess  and will at all times  continue  to  possess,  all
requisite  material  franchises,  certificates  of  convenience  and  necessity,
operating  rights,  approvals,  licenses,  permits,  consents,   authorizations,
exemptions  and  orders  as are  necessary  to carry  on its or  their  business
including without limitation,  operation of the Mortgaged Property,  without any
known  conflict  with the rights of others and,  with respect to  Borrower,  the
Mortgaged  Property  and the  Association,  in each case subject to no mortgage,
pledge, Lien, lease,  encumbrance,  charge,  security interest,  title retention
agreement or option other than Liens in favor of Lender and the Permitted Liens.

            9.12.  Environmental  Matters.  The  Project  does  not and will not
contain any Hazardous Materials,  except for certain Hazardous Materials used in
the operation of Borrower's  business which are properly  stored and maintained.
No Hazardous  Materials  are or will be used or stored at or  transported  to or
from the  Development  Parcel  or the  Project,  except  for  certain  Hazardous
Materials used in the operation of Borrower's business which are properly stored
and maintained.  Neither Borrower, Manager nor the Association has ever used the
Project as a facility for the storage, treatment or disposition of any Hazardous
Materials or has received notice from any governmental  agency,  entity or other
Person with regard to Hazardous  Materials  on, under or affecting  the Project.
Neither Borrower nor the

                                       27
<PAGE>

Project, nor any portion thereof,  nor the Association,  are in violation of any
Environmental Laws.

            9.13. Full Disclosure. No information,  exhibit or written report or
the content of any  schedule  furnished by or on behalf of Borrower to Lender in
connection  with the Loan,  the  Collateral  or the Mortgaged  Property,  and no
representation  or statement made by Borrower in any Loan Document  contains any
material  misstatement  of  fact or  omits  the  statement  of a  material  fact
necessary  to make the  statement  contained  herein or therein not  misleading,
subject to obtaining  the permits and  approvals  to construct  the Work and the
creating of the condominium and timeshare documents which have not been prepared
at this time. Borrower does not know of any fact or condition which will prevent
the sale of Timeshare  Interests to  Purchasers  or prevent the operation of the
Project in accordance with the  Declarations  and related Public Report,  and in
accordance with all Legal Requirements, or prevent Borrower's performance of its
Obligations pursuant to the Loan Documents.

            9.14. Use of Proceeds/Margin Stock. None of the proceeds of the Loan
will  be used to  purchase  or  carry  any  "margin  stock"  (as  defined  under
Regulation  U of the Board of  Governors of the Federal  Reserve  System,  as in
effect  from time to time),  and no portion of the  proceeds of the Loan will be
extended to others for the purpose of purchasing or carrying margin stock.  None
of  the  transactions   contemplated  in  this  Agreement  (including,   without
limitation, the use of the proceeds from the Loan) will violate or result in the
violation of Section 7 of the  Securities  Exchange Act of 1934, as amended,  or
any  regulations  issued  pursuant  thereto,   including,   without  limitation,
Regulations  G, T, U and X of the  Board of  Governors  of the  Federal  Reserve
System, 12 C.F.R.,  Chapter 11. Borrower is not an investment company as defined
by the Investment Company Act of 1940, as amended,  and Borrower is not required
to register under said Act.

            9.15. No Defaults.  No Incipient Default or Event of Default exists,
and there is no violation in any material  respect of any term of any agreement,
bylaw or other  instrument  to which  Borrower  is a party or by which it may be
bound which violation materially and adversely affects Borrower.

            9.16. Compliance with Law.

                  (a)  Borrower  is not  in  violation,  nor  is  the  Mortgaged
Property, or the business operations in respect of the Mortgaged Property, or to
Borrower's  knowledge after diligent inquiry,  the Association,  in violation of
the  Condominium  Act or Timeshare  Act or any other Legal  Requirements,  which
violation materially and adversely affects the Borrower, the Mortgaged Property,
the business operations of the Mortgaged Property or the Association; and

                                       28
<PAGE>

                  (b) As to the  Existing  Units and the Phase 2 Land,  Borrower
has not  failed,  nor has the  Project  or  Association  failed,  to obtain  any
consents or joinders, or any approvals,  licenses,  permits, franchises or other
governmental  authorizations,  or to  make or  cause  to be  made  any  filings,
submissions,  registrations  or  declarations  with any  government or agency or
department thereof necessary to the establishment, ownership or operation of the
Mortgaged  Property  or any of  Borrower's  other  assets,  or to the conduct of
Borrower's business, which violation or failure to obtain or register materially
and  adversely  affects  Borrower,  the  Mortgaged  Property  or  the  business,
prospects, profits, properties or condition (financial or otherwise) of Borrower
or the Mortgaged Property.

                  (c) The Timeshare  Declaration  was duly adopted in compliance
with  applicable  Legal  Requirements  and governs the condominium and timeshare
regimes established pursuant to the Timeshare Declaration.

            9.17.  Restrictions  of Borrower  or  Guarantor.  None of  Borrower,
Guarantor,  or, to  Borrower's  knowledge,  the  Association,  is a party to any
contract or agreement with respect to the Mortgaged Property,  or subject to any
Lien,  charge or corporate  restriction with respect to the Mortgaged  Property,
which  materially  and adversely  affects its or their  business  other than the
Permitted  Exceptions.  Borrower  and  Guarantor  will not be,  on or after  the
Closing Date, a party to any contract or agreement which prohibits Borrower's or
Guarantor's  execution of, or compliance with the terms of this Agreement or the
other Loan Documents. Borrower has not agreed or consented to cause or permit in
the  future  (upon the  happening  of a  contingency  or  otherwise)  any of the
Collateral,  whether now owned or hereafter  acquired,  to be subject to a Lien,
except  the  Liens in favor of Lender  as  provided  hereunder  and  except  for
Permitted Liens.

            9.18.  Broker's Fees.  Borrower has not made any commitment or taken
any action  which will  result in a claim for any  brokers',  finders'  or other
similar fees or commitments with respect to the  transactions  described in this
Agreement.

            9.19. Deferred Compensation Plans.  Borrower has no pension,  profit
sharing  or other  compensatory  or  similar  plan  providing  for a program  of
deferred compensation for any employee or officer.

            9.20. Labor Relations.  The employees of Borrower are not a party to
any collective bargaining agreement with Borrower, and, to the best knowledge of
Borrower,  there are no material grievances,  disputes or controversies with any
union or any other organization of Borrower's employees,  or threats of strikes,
work stoppages or any asserted pending demands for collective  bargaining by any
union or organization.

                                       29
<PAGE>

            9.21. Tax  Identification  Numbers.  Borrower's  federal  taxpayer's
identification number and State organization numbers are as follows:

                      Tax I.D.             State Organization Number
                      --------             -------------------------
                      65-0433722           P9300051653

            9.22.  Insurance.  All  the  insurance  required  by  the  Timeshare
Declaration,  and the  Agreement  to Provide  Insurance  has been  obtained,  is
presently in full force and effect and all premiums thereon have been fully paid
to date. To the best of Borrower's knowledge,  none of the policies for property
insurance may be canceled or materially  modified,  except after at least thirty
(30) days  written  notice by the  insurance  carrier  to Lender and none of the
policies for liability insurance may be canceled or materially modified,  except
after  endeavoring  to  provide  at least  ten (10) days  written  notice by the
insurance  carrier to Lender.  Lender has been named as an  additional  insured,
insured mortgagee (with a standard mortgagee's endorsement) and loss payee (with
a lender's loss payable endorsement) on such policies.

            9.23. Names and Addresses.  During the past five (5) years, Borrower
has not been known by any names (including trade names) and has not been located
at any  addresses,  other than those set forth on Schedule 9.23. The portions of
the Collateral which are tangible property and have not been delivered to Lender
(or a custodian for Lender) and the books and records pertaining thereto will at
all times be located at the address for Borrower set forth on Schedule  9.23, at
the Project or at such other location  determined by Borrower after prior notice
to Lender and  delivery to Lender of any items  requested  by Lender to maintain
perfection and priority of Lender's security  interests and access to such books
and records.  Schedule 9.23 identifies the chief executive  office and principal
place of business of Borrower.

            9.24.  Solvency.  Borrower  is  solvent.  No transfer of property is
being made by  Borrower  and no  obligation  is being  incurred  by  Borrower in
connection  with the  transactions  contemplated  by this Agreement or the other
Loan  Documents with the intent to hinder,  delay,  or defraud either present or
future creditors of Borrower.

            9.25. Common Enterprise.  The successful  operation and condition of
Obligors are dependent on the continued successful  performance of the functions
of the  Obligors  as a whole and the  successful  operation  of each  Obligor is
dependent on the successful performance and operation of the other Obligor. Each
Obligor  expects  to  derive  benefit  (and the  boards  of  directors  or other
governing  body of each such Obligor has  determined  that it may  reasonably be
expected to derive benefit),  directly and indirectly,  from the credit extended
by Lender  hereunder,  both in its  separate  capacity  and as a member with the
other Obligor of an interrelated group of companies. Each Obligor has determined
that  execution,  delivery and

                                       30
<PAGE>

performance  of this  Agreement  and any other Loan  Documents to be executed by
such Obligor is within its corporate or company  purpose,  will be of direct and
indirect benefit to such Obligor and is in its best interest.

            9.26. Intentionally Omitted.

            9.27.  Completeness of  Representations.  Neither this Agreement nor
any  exhibit   attached  hereto  nor  any  certificate,   financial   statement,
correspondence  or other document  delivered or furnished to Lender hereunder or
in connection with the transactions contemplated hereby contains or will contain
any  untrue  statement  of a  material  fact or  omits  or will  omit to state a
material fact  necessary in order to make the  statements  contained  herein and
therein not misleading.  Except as set forth on Schedule 9.10,  there is no fact
(a) which  materially and adversely  affects or in the future may, so far as any
Obligor can now foresee,  materially and adversely affect any Obligor's  ability
to perform its obligations under the Loan Documents, or the condition, financial
or  otherwise,  business or  prospects of any Obligor,  the  Association  or the
Project,  (b)  which  may  result in any  liability  on the part of any  Obligor
reflected  on the  financial  statements  described  in Section  9.7,  (c) which
questions  or denies the right of any Obligor to conduct its business or operate
the  Project,  or (d) which  prevents  or  restricts  the  granting  of security
interests to Lender in the Collateral.

            9.28. No Violation of Right of First Refusal.  The execution of this
Agreement and any Advances made  hereunder  shall not violate any right of first
refusal of any Person to provide such financing.

      10. Representations, Warranties and Covenants With Respect to the Project.
Obligors,  jointly and  severally,  represent  and warrant to and covenant  with
Lender as follows,  with respect to the  Mortgaged  Property and each Unit to be
included in the Mortgaged Property:

            10.1. Access and Utilities. Each Unit will have adequate access from
a publicly dedicated street over easement areas when constructed, will be served
by adequate utilities and will have adequate parking facilities.

            10.2.  Compliance.  Obligors  and  the  Mortgaged  Property  are  in
compliance  with  and will  comply  in all  material  respects  with  all  Legal
Requirements.

            10.3. Timeshare Declaration. On or before the first sale and closing
of a Timeshare  Interest by  Borrower  in Phase 2, all Units,  all  improvements
thereon,  all  equipment,   furnishings  and  appliances  intended  for  use  in
connection  therewith  pertaining to such Timeshare  Interest will have been and
thereafter will continue to be duly submitted to the provisions of the Timeshare
Declaration,  as  amended to include  Phase 2 as part of the  timeshare  regime,
which  Timeshare  Declaration  and any amendment  will have been recorded in the
Public Records of St. Johns County,

                                       31
<PAGE>

Florida.  The Timeshare  Declaration  will not be amended in any way which would
materially  alter the Project,  the rights of Purchasers,  the rights of lenders
foreclosing  on a  Timeshare  Interest or any  priority  of past due  assessment
claims over the lien of any mortgage  encumbering a Timeshare  Interest  without
the prior written consent of Lender.

            10.4. Zoning Laws, Building Codes, Etc. The Mortgaged Property,  all
the  buildings  and other  improvements  in which the Units are situated and all
Amenities  will when  constructed  be  completed  in all  material  respects  in
compliance with all applicable zoning codes,  building codes, health codes, fire
and safety codes, and other Legal  Requirements.  All inspections,  licenses and
permits required to be made or issued in respect of such buildings and Amenities
will be made or issued by the appropriate authorities as are required to approve
such  development  at the time same is developed.  The use and occupancy of such
buildings for their intended purposes is and will be lawful under all applicable
laws  and  regulations.  On  or  before  the  Phase  2  Completion  Date,  final
certificates of occupancy will be issued and in effect for all Units in Phase 2.
The  timeshare  use and  occupancy  of Units does not and will not  violate  any
private covenant or restriction or any zoning,  use or similar law, ordinance or
regulation affecting the use or occupancy of the Mortgaged Property.

            10.5.  Units  Ready for Use.  All of the Phase 2 Units will be fully
furnished and ready for use by Owners on or before the Phase 2 Completion  Date.
On or before the Phase 2  Completion  Date,  all common  furnishings  (including
appliances)  within  such Phase 2 Units are and will be owned by Borrower or the
Association,  have been or will be fully paid for,  and are and will be free and
clear of any liens or other  interests of any third party  including any lessor.
The  Mortgaged  Property  is owned by  Borrower  free and clear of all liens and
encumbrances, except those in favor of Lender and the Permitted Liens.

            10.6.  Mortgaged  Property Taxes and Fees. All real property  taxes,
condominium and similar  maintenance fees,  rents,  assessments and like charges
affecting  the  Mortgaged  Property  have been fully paid to date, to the extent
such items are due and payable.

            10.7. No Defaults. No default or condition which, with the giving of
notice or passage of time,  or both,  would  constitute  a default,  exists with
respect to any mortgage,  deed of trust or other encumbrance  against any of the
Mortgaged  Property  or any  personal  property  therein  or used in  connection
therewith  or with  respect to any other  agreement  affecting or related to the
Mortgaged Property.

            10.8. Timeshare Plan. Borrower shall amend the Public Report and the
Timeshare  Declaration  to add  the  Units  which  make up  Phase  2 upon  their
completion.  Further Borrower shall file with any applicable regulatory agencies
in the State the required  documentation  for approval of Phase 2 of the Project
as a

                                       32
<PAGE>

timeshare project. Borrower will provide a copy of the public offering statement
as required by Florida state law and all amendments and  supplements  thereto to
Lender and Lender's  counsel at the time it is  finalized  for  distribution  to
Purchasers. Borrower will provide Lender and Lender's counsel with copies of all
correspondence  and other  responses  received from the Division  related to the
application within two (2) Business Days after receipt by Borrower or Borrower's
counsel.  On or  before  the  date  hereof,  Phase 2 shall  be  established  and
dedicated as a timeshare plan and project in full compliance with all applicable
Legal  Requirements,  including  without  limitation,  the Timeshare  Act. On or
before the date hereof, Borrower will deliver to Lender:

                  (a) a copy of the Timeshare  Declaration,  as amended,  to add
Phase 2 to the timeshare  regime, as recorded in the Public Records of St. Johns
County,  Florida;  and a copy of the assignment of declarant  rights in favor of
Borrower as recorded in the Public Records of St. Johns County, Florida; and

                  (b)  copies of any and all  endorsements  to the Title  Policy
required by Lender,  related to the  establishment  of the timeshare regime with
respect to Phase 2 of the Project.

      To the  best  of  Borrower's  knowledge,  the  Existing  Units  have  been
established  and  dedicated  as a timeshare  project in full  compliance  in all
material  respects with all applicable  Legal  Requirements,  including  without
limitation, the Timeshare Act.

            10.9.  Sale  of  Timeshare   Interests.   All  sales  and  marketing
activities  will be made in compliance  in all material  respects with all Legal
Requirements  and utilizing then current and approved  Florida  public  offering
statement.  The marketing,  sale,  offering for sale,  rental,  solicitation  of
purchasers  and financing of Timeshare  Interests:  (a) will not  constitute the
sale,  or the  offering  for  sale of  securities  subject  to the  registration
requirements of the Securities Act of 1933, as amended,  or any other federal or
state securities law applicable to such sale or offer for sale or such sale will
comply with such securities laws; (b) will not materially  violate the Timeshare
Act or any land sales or consumer  protection law,  statute or regulation of the
State  of  Florida  or any  other  state  or  jurisdiction  in  which  sales  or
solicitation  activities occur; and (c) will not materially violate any consumer
credit  or  usury  statute  of the  State  of  Florida  or any  other  state  or
jurisdiction in which sales or solicitation activities occur.

            10.10. Brokers. All marketing and sales activities will be performed
by independent contractors, agents or employees of Borrower, all of whom are and
will be  properly  licensed in  accordance  with  applicable  laws to the extent
required.  Borrower will retain a duly licensed broker of record for the Project
as required by State law and will forward to Lender and Lender's counsel written
evidence of such brokerage arrangement.

                                       33
<PAGE>

            10.11. Tangible Property . The machinery, equipment, fixtures, tools
and  supplies  used or to be used in  connection  with  the  Project,  including
without limitation,  with respect to the operation and maintenance of the common
elements,  will be owned or leased  either by  Borrower  or the  Association  or
Contractor or any Subcontractor (as defined in Section 11.5).

            10.12.  Condition  of  Project.  The  Mortgaged  Property is not now
damaged nor injured as a result of any fire, explosion, accident, flood or other
casualty.

            10.13.  Assessments and Developer  Subsidy.  The assessments  levied
with respect to the Project  together  with any subsidies to be paid by Borrower
are sufficient to cover all expenses of the  Association  for the Project.  Each
Owner of a Timeshare Interest or Vacation Trust, Inc., a Florida  corporation in
its  capacity as trustee  under the Club's  Trust  Agreement  is a member of the
Association.  The Association has the power and authority to levy assessments to
cover the expenses of the Project.  Any lien for unpaid  assessments  related to
the Mortgaged Property is subject to the lien of Lender's Mortgage.

            10.14.  Amenities.  All Amenities for the Project are located on the
Master Property.

            10.15.  Permits and Licenses.  All  licenses,  permits and approvals
required  for the  use,  occupancy  and  operation  of the  Phase  2 Units  upon
completion have been or will be properly obtained.

            10.16.  Wetlands.  None of the Project  includes any  "wetlands"  as
designated by the U.S. Army Corps Of Engineers.

            10.17. Mechanics Lien Claims.  Borrower has not received any written
notice of a potential  claim,  from any  contractor,  laborer or  materialman in
connection  with any work,  labor or materials  furnished in connection with the
Phase 2.

            10.18. Project Contracts. The contract,  agreements and arrangements
listed and  described  in Schedule  10.18  comprise  all of the  agreements,  or
arrangements  relating  to  the  operation,  management,  marketing,  sales  and
maintenance and of the Mortgaged Property. Subject to the terms of Section 12.23
and Section 14.2,  all of the Project  Contracts  are and shall  (unless  Lender
shall otherwise  consent in advance in writing)  remain  unmodified and free and
clear of any lien or encumbrance.

            10.19. Intentionally Omitted.

            10.20.  Site  Plan  Approval.  Borrower  represents  that St.  Johns
County,  Florida has  approved the Site Plan for  development  of the sixty (60)
Units

                                       34
<PAGE>

consisting of Phase 2 under this Agreement ("Site Plan"). The approved Site Plan
is attached hereto as Exhibit "D".

            10.21.  Club Plan. The Club has been  established  and to Borrower's
actual current  knowledge there are no present material  violations of the Legal
Requirements in connection with all of the Borrower's accommodations, facilities
and resorts which  comprise the Club and Borrower  shall use its best efforts to
cause the foregoing to remain in full  compliance in all material  respects with
all applicable Legal Requirements,  including, without limitation, the Timeshare
Act and Condominium  Act.  Borrower shall use its best efforts to cause the Club
to  remain  a  multi-site  timeshare  plan  registered  under  applicable  state
registration laws and in full compliance with the Club Documents.

            10.22.  Reservation System. To the best of Borrower's knowledge, the
Reservation  System for the Club is fully  operational for its intended purpose.
Guarantor  represents  that the  Reservation  System for the Club  including the
computer  software  is  licensed  to  the  Guarantor  by the  software's  owner.
Guarantor  shall  use all  reasonable  commercial  efforts  to  assure  that the
Reservation  System shall  continue in  operation  and shall be available to the
Club.  Guarantor  acknowledges the significance of the Reservation System to the
ability of the Project and the Club to operate  properly and to allow Purchasers
to exercise  use rights as set forth in Project  Documents  and Club  Documents.
Guarantor  agrees to cause the appropriate  party to prepare reports and provide
information on the Reservation System,  consistent with information  provided to
state regulators or other lenders, promptly upon request from Lender.

            10.23. One to One Ratio Compliance. Borrower represents and warrants
that to the best of Borrower's knowledge, the Club will in all material respects
be in compliance with the one to one Owner Beneficiary to Accommodation Ratio as
defined in the Club's Trust Agreement ("One to One Ratio").

            10.24. Club Documents.  The Borrower has furnished to the Lender and
Lender has reviewed true and correct copies of the Club  Documents.  To the best
of Borrower's knowledge, all such filings and/or recordations,  and all joinders
and consents,  necessary in order to establish the timeshare  plan in respect of
each Club resort,  including  without  limitation,  the Phases,  the Units,  the
common elements,  common furnishings,  facilities and all related use and access
rights,  have  been done or  obtained,  all  statutes,  ordinances,  rules,  and
regulations,  and all agreements or arrangements,  in connection  therewith have
been complied with in all material respects.

      11.  Construction  Representations,  Warranties and  Covenants.  Obligors,
jointly and  severally,  represent  and warrant to and  covenant  with Lender as
follows:

                                       35
<PAGE>

            11.1.  Construction.  All costs arising from and owed by Borrower in
connection  with  the  Work  and the  purchase  of any  fixtures  or  equipment,
inventory, furnishings or other personalty located in, at or on the Project will
be paid when due.

            11.2.  Cost  Certificate.  Attached  hereto as Exhibit "E" is a line
item  breakdown for Phase 2 (the "Phase 2 Cost  Certificate")  setting forth the
cost of each class of work included in the Phase 2 Work and all incidental costs
related to the Phase 2 Work,  specifying  which  items are to be funded from the
Loan and which  items  are to be funded  from  other  sources.  The Phase 2 Cost
Certificate  shall  constitute a budget based upon which  Construction  Advances
shall  be  made  for  each  of the  applicable  line  items.  The  Phase  2 Cost
Certificate  shall  include  a line item of at least  $100,000  for Phase 2 Work
(from the Loan) for  contingencies  which may only be  disbursed  with the prior
written  consent of Lender,  which consent shall not be  unreasonably  withheld.
Notwithstanding  the foregoing and subsequent to the Closing Date, up to $10,000
of the total amount budgeted for  contingences for Phase 2 Work may be disbursed
without  Lender's  consent but shall be  disclosed  on the revised  Phase 2 Cost
Certificate.  The Phase 2 Cost Certificate is accurate and complete. If Borrower
determines that the Phase 2 Cost Certificate needs to be revised for any reason,
including delays in construction, Borrower will immediately notify Lender of the
requested  change.  No change to the Phase 2 Cost Certificate shall be effective
without the prior written  consent of Lender.  Borrower  shall prepare a Phase 2
Cost  Certificate.  The Phase 2 Cost  Certificate  shall be  accompanied  by the
applicable  completion  schedule in form and  applicable  content  acceptable to
Lender  which  reflects a timetable  and  schedule  for  completion  of the Work
required for Phase 2.

            11.3.  Construction  Contract.  The  contract  to be executed by and
between Borrower and the Contractor for Phase 2 (the  "Construction  Contract"),
shall be in a form and content  reasonably  satisfactory to Lender,  in its sole
discretion.  Without limiting the foregoing,  such  Construction  Contract shall
require  the   Contractor  to  construct   the  Work  in  accordance   with  the
Specifications.  Subsequent to the Closing Date,  Borrower  shall not permit any
default under the terms of the Construction Contract;  waive any of Contractor's
obligations  thereunder;  do any act which  would  relieve  Contractor  from its
obligations to construct the Work according to the  Specifications;  or make any
amendment,  other  than  change  orders as may be  permitted  hereunder  without
Lender's  prior written  consent.  Borrower  shall furnish Lender with a written
agreement from the Contractor  consenting to the assignment of the  Construction
Contract  to Lender and  covering  such other  matters as Lender may  reasonably
require.  The  Contractor  shall be duly  licensed to act as a contractor in the
State and has in force liability  insurance in amounts reasonably  acceptable to
Lender and workers'  compensation  in amounts  required by  applicable  law. The
Construction   Contract  shall  contain,   among  other  things,  the  following
provisions:

                                       36
<PAGE>

                  (a) A provision that prior to final payment to the Contractor,
the  Contractor  shall  deliver to Borrower  and Lender (i) a final and complete
release of liens signed by the  Contractor  and all  Subcontractors,  and (ii) a
Certificate of Occupancy issued by St. Johns County,  Florida for the applicable
Work.

                  (b) A provision that (i) no change order involving an increase
or  decrease  in the cost of the Work of more than  $50,000  for any one  change
order or $250,000  in the  aggregate  with all other  change  orders  (except as
approved prior to the Closing Date),  and (ii) no change order subsequent to the
Closing Date which involves any material change in the architectural, mechanical
or  structural  design of any portion of the Work or any material  change in the
quality of  workmanship  or  materials  or any delay in  completion  of the Work
beyond the Phase 2 Completion Date, shall be effective without the prior written
consent  of  Lender.  Any  cost  saving  in a  line  item  of the  Phase  2 Cost
Certificate may not be automatically applied to any line item which is in excess
of the budgeted amount for that line item.

                  (c) A  provision  that the  Construction  Contract  may not be
terminated by the  Contractor  until thirty (30) days after delivery of a notice
of Borrower's  default and  opportunity to cure to Lender (or such longer period
after said delivery as may be reasonably necessary to cure a default thereunder)
and may not be  terminated  by the  Contractor  by reason of the  bankruptcy  or
insolvency of Borrower.

                  (d) A provision for retainage  equal to 10% holdback from each
Construction  Advance  as set  forth  in the  Phase  2 Cost  Certificate,  which
retainage  shall be  released  in the manner  set forth in  Section  8.5 of this
Agreement.

                  (e)  Notwithstanding  the  foregoing,  Lender has reviewed the
Construction  Contract and  acknowledges  it is in compliance  with this Section
11.3.

            11.4.  Architect's Contract.  The contract dated August 19, 2005, by
and between Borrower and the Architect for Phase 2 (the "Architect's  Contract")
shall provide that  subsequent to the Closing Date,  Borrower shall not agree to
nor permit any material amendment, modification, waiver or other material change
to or of any of the  foregoing  without  the prior  written  consent  of Lender.
Borrower  shall  furnish  Lender with a written  agreement  from  Architect  (a)
certifying that the Specifications comply with all applicable Legal Requirements
relating  to the  Work,  occupancy  and  use of  Phase  2 of  the  Project,  (b)
consenting to the assignment of the Architect's Contract to Lender, (c) agreeing
that the Architect will continue  performance under the Architect's  Contract at
Lender's  request  after  any  Event of  Default  hereunder  or after a  default
thereunder by Borrower (other than a monetary  default not cured),  (d) agreeing
that Lender may use the  Specifications  without additional cost to complete the
Work after a Default or an Event of Default, and (e) covering such other matters
relating  to the  Work as  Lender  may  reasonably  request.  All  costs  of the
Architect shall be paid by Borrower.

                                       37
<PAGE>

            11.5.  Subcontracts.   If  funding  of  the  Loan  occurs  prior  to
completion of the Phase 2 Work, then each contract (each a "Subcontract")  which
has  been  executed  by  and  between   Borrower  or  the  Contractor  and  each
subcontractor,  materialman and supplier who is to provide labor or materials at
a value equal to or in excess of $100,000 necessary to achieve completion of the
Phase 2 Work (each a  "Subcontractor")  shall  contain (a) the  agreement of the
Subcontractor  to perform the Subcontract for Lender following the occurrence of
an Event of Default,  (b) a provision that the  Subcontractor  shall comply with
the provisions of the  Applicable  Mechanics Lien Law, (c) a provision for a ten
percent  (10%)  retainage,  to be  released as set forth in Section  8.5,  (d) a
provision that prior to final payment to the  Subcontractor,  the  Subcontractor
shall  deliver to  Borrower  and Lender a final  release of liens  signed by the
Subcontractor, and (e) a provision that there will be no termination, amendment,
waiver or material  change of the  Subcontract  subsequent  to the Closing  Date
without the prior written  consent of Lender.  If requested by Lender,  Borrower
shall  furnish  statements  from each  Subcontractor  and  supplier  of labor or
materials,  stating the amount of its contract and the amount paid to date,  and
acknowledging  full payment (less  retainage for all work done and/or  materials
supplied to date).  Subsequent  to the Closing  Date,  Borrower  shall not:  (i)
permit any  material  default by Borrower  under the terms of the  Subcontracts;
(ii) waive any of Subcontractors' obligations thereunder; (iii) do any act which
would  relieve any of the  Subcontractors  of their  respective  obligations  to
complete the Work according to the Specifications;  (iv) or make any amendments,
other  than  change  orders  permitted  hereunder  or as Lender  may  approve in
writing,  to any of the  Subcontracts  without  Lender's prior written  consent.
Borrower  shall  cause  Contractor  to  prepare  and  maintain  a  list  of  all
Subcontractors whose contracts with the Contractor each have a value equal to or
in excess of $100,000 for Phase 2, together with copies of their contracts,  and
showing the name, address and telephone number of each  Subcontractor,  the work
or material performed or supplied by each Subcontractor, and the total amount of
each contract and  subcontract and amounts paid through the date upon which such
list was completed, and shall keep the list current until each of the applicable
Phases have been completed.

            11.6.   Specifications.   The   Specifications   for   Phase  2  and
construction  pursuant thereto shall prior to construction have been approved by
any governmental or quasi governmental  authorities.  Such Specifications comply
and will  continue  at all  times to comply in all  material  respects  with all
applicable   Legal   Requirements   and  all  other   quasi-governmental   laws,
regulations,  and standard  requirements,  including but not limited to the Fair
Housing Act of 1968 as  amended,  and the  Americans  with  Disabilities  Act as
amended,  and that  provisions  have been made for the handicapped in accordance
with Legal  Requirements.  No material  change  shall be made  hereafter  in the
Specifications without the prior written consent of the Lender.

                                       38
<PAGE>

            11.7.  Permits.  All renovation or building permits required for the
Work at Phase 2, were  properly  obtained  prior to commencing  such  applicable
Work. All other licenses, permits and approvals required for the Work at Phase 2
were properly obtained prior to commencing the applicable Work.

            11.8.  Commencement of Construction.  Borrower commenced the Work on
or before the applicable  Commencement  Date for Phase 2 and diligently  pursued
the Work to completion utilizing good workmanship and quality materials. Quality
of  construction  is of the  essence  and each  Advance  under the Loan shall be
subject to satisfactory quality and completion of work in place.  Borrower shall
supply  such sums of money and  perform  such  duties  as may be  necessary  for
Completion of the Work in compliance in all material respects with all terms and
conditions of the Loan Documents on or prior to the Phase 2 Completion Date, and
without any lien,  claim or assessment  (actual or contingent)  asserted against
the  Project for any  material,  labor or other items  furnished  in  connection
therewith and further in compliance with all construction, use, building, zoning
and other similar requirements of any pertinent governmental authority. Borrower
will  provide to Lender  evidence of  satisfactory  compliance  with all of such
requirements  upon  request by Lender  and shall  provide  Lender  with true and
correct  copies  of all  certificates  of  occupancy  issued  by all  applicable
governmental entities immediately upon issuance thereof.

            11.9.  Zoning and Land Use.  The Project is zoned as a Planned  Unit
Development (PUD), under which timeshare is an allowed use.

            11.10.  Additional Equity.  Lender reserves the right to require, at
any time and from time to time,  at  Borrower's  expense,  a  construction  cost
analysis  by the  Inspector  or by an  expert  in the  construction  cost  field
designated by Lender. If Lender reasonably estimates,  at any time and from time
to time,  that the amount  necessary to assure final  Completion of the Work for
Phase  2,   including   but  not  limited  to,   interest   and  other  soft  or
non-construction  budget  items (the "Phase 2 Total  Budget")  shall  exceed the
amount of the (a) remaining Advances under the Loan which are to be used to fund
Approved Costs for the Work, plus (b) the total amount of all equity investments
made or scheduled to be made by Borrower or  Guarantor,  then  Borrower,  at the
request of Lender,  shall (i)  immediately  deposit with  Lender,  to be held by
Lender in a non-interest  bearing,  non-escrow  account,  the amount of any such
difference, in cash, which amount shall be disbursed toward Phase 2 Total Budget
costs prior to any further  advance by Lender under the Loan, (ii) provide other
financial  assurances  acceptable to Lender that additional  construction  funds
will be available to Borrower and  Guarantor to fund  Completion of the Work, or
(iii)  pay from  other  sources  the  amount  of any such  difference  for items
included  in the  Phase  2  Total  Budget  with  satisfactory  evidence  of such
expenditure  being  provided to Lender prior to any further  Advances  under the
Loan.  Lender  shall be  assured  at all times,  to its  satisfaction,  that the
estimated  Advances  to be made  under  the  Loan  which  are to be used to fund
Approved  Costs

                                       39
<PAGE>

for the Work are sufficient to complete the Work for Phase 2 in accordance  with
the Phase 2 Total Budget,  the  applicable  Specifications  and this  Agreement.
Obligors  hereby  agree that payment for any cost  overruns  related to the Work
shall be the sole  responsibility  of  Obligors.  Lender  reserves  the right of
continual  verification  of  adequate  equity  investments  made by  Borrower as
required in this Section.

            11.11.  No  Developer's  Fee.  The  Phase 2 Total  Budget  does  not
include,  directly  or  indirectly,  any  developer's  fee  and  the  line  item
identified as  "construction  overhead"  shall be used for actual  out-of-pocket
costs and  expenses  of  Borrower  and  shall  not  include  any  hidden  fee or
developer's profit.

            11.12. Right of Lender to Inspect Project and Review Specifications.
Borrower shall permit Lender, its  representatives  and agents and the Inspector
at any  reasonable  time and from time to time to enter upon the  Project and to
inspect the Work and all materials to be used in the construction thereof and to
cooperate and cause Contractor to cooperate with Lender and its  representatives
and agents and the Inspector during such inspections (including making available
to  Lender  working  copies  of the  Specifications  together  with all  related
supplementary  materials);  provided that this provision  shall not be deemed to
impose upon Lender any obligation to undertake such inspections.

            11.13.  Correction of Defects.  Borrower shall promptly  correct any
defect in the Work or any departure from the  Specifications not permitted under
this Agreement,  which has not been approved previously by Lender. The making of
any  Construction  Advance  shall not  constitute a waiver of Lender's  right to
require compliance with this covenant.

            11.14. Notification of Mechanics Lien Claims. Borrower and Guarantor
shall advise Lender promptly in writing if Borrower receives any notice, written
or  oral,  from  any  Contractor,   laborer,  subcontractor  or  materialman  in
connection  with any work,  labor or materials  furnished in connection with the
Work.  Borrower  shall  furnish,  and shall cause  Contractor  to furnish,  such
information,  affidavit(s),  cash deposits  and/or bond(s) as may be required by
the Title  Company to issue and continue to date down the Title Policy from time
to time free and clear of the claims of contractors,  subcontractors,  mechanics
and/or materialmen.

            11.15.  Construction  Tests. If requested by Lender,  Borrower shall
furnish to Lender (a) all field tests and  laboratory  tests  performed by local
building   departments  or  any  independent  parties,   complete   construction
schedules,  certificates, plans and specifications,  appraisals, title insurance
and other insurance,  reports and agreements,  (b) the names of all persons with
whom  Borrower  has  contracted  or  intends  to  contract  for the  Work or the
furnishing of labor or materials  therefor,  (c) copies and/or lists of all paid
and/or  unpaid bills for labor and materials  with respect to the Work;  and (d)
construction  budgets of

                                       40
<PAGE>

Borrower and revisions  thereof  showing the estimated cost of completion of the
Work and the total funds required at any given time to complete and pay for such
construction.

            11.16.  Substantial  Completion.  Upon Substantial Completion of the
Mortgaged Property, Borrower shall deliver to Lender:

                  (a)  Permits.  A  copy  of the  final  permits  and  approvals
necessary or required from all  authorities  whose  approval is required for the
lawful use, occupancy and operation of the Project.

                  (b) Final  Releases  of Lien;  Contractor's  Affidavit.  Final
mechanics'  lien  releases  executed  by the  Contractor,  in form  and  content
acceptable to Lender and in conformance with Florida law,  together with any and
all  additional  affidavits  of all such  parties  sufficient  in the opinion of
Lender's  counsel to comply  with  Florida  law to enable  the Title  Company to
remove any and all mechanics' and  materialmen's  liens  (inchoate or otherwise)
affecting title to the Mortgaged Property.

                  (c)  Certificates of Substantial  Completion.  Certificates of
Substantial Completion signed by the Contractor, Inspector and Borrower.

                  (d) As-Built  Survey.  As to the final  Advance under the Loan
for Phase 2, receipt by Lender of two (2) originals of a  satisfactory  As-Built
Survey.

                  (e) As-Built  Plans.  Two (2) sets of detailed  as-built plans
must be submitted to Lender  promptly  after they are  completed but in no event
later  than two (2) months  following  the  issuance  of the  certificate(s)  of
occupancy (or the equivalent) with respect to Phase 2.

                  (f) Insurance. Insurance coverage shall be expanded to include
all forms of insurance  reasonably  required by Lender in form  satisfactory  to
Lender to the extent provided in the Timeshare  Declaration and the Agreement to
Provide Insurance.

                  (g) Other  Evidence  of  Compliance.  Such other  evidence  as
Lender may require to establish that the Work, and any portion thereof,  and its
intended use complies with all applicable  zoning, use and other requirements of
the  public  authorities  having  jurisdiction  and any other  applicable  Legal
Requirements.

            11.17. Intentionally Omitted.

            11.18.  Notice of Completion.  As soon as practicable,  but no later
than ten (10) days after Completion of the Work,  Borrower shall record or cause
to be recorded in the Public  Records a "Notice of  Completion"  pursuant to the
Applicable

                                       41
<PAGE>

Mechanics Lien Law and shall forward to Lender and Lender's  counsel evidence of
such recordation.

            11.19.  Compliance with Inspector's  Standards.  The Work (including
without  limitation  work which is not financed with proceeds of the Loan) shall
comply with standards and specifications acceptable to the Inspector.

            11.20. Intentionally Omitted.

            11.21.  Force Majeure.  The Phase 2 Completion Date and the time for
performance by Borrower of any of its construction-related obligations under the
Loan Documents  prior to the Phase 2 Completion  Date (excluding any obligations
for  payments of money,  taxes or  insurance  premiums)  may be extended for the
period of time during which such performance is delayed or hindered by reason of
the  occurrence of an event of Force  Majeure.  "Force  Majeure"  shall mean any
delay or hindrance caused by any events or causes beyond  Borrower's  reasonable
control,  including,  without  limitation,  fire, flood,  earthquake,  casualty,
inclement  weather,  other  acts  of  God,  acts  of a  public  enemy  including
terrorism, riot, insurrection,  governmental regulation of the sale of materials
or supplies or the transportation  thereof,  lack of transportation,  strikes or
boycotts,   temporary   restraining   orders  for  injunctions   prohibiting  or
restraining all or any portion of the Work if initiated by a third party and not
reasonably  preventable  by  Borrower,  governmental  actions and  shortages  of
material or labor.

            11.22. Lien Waivers. Borrower shall provide an indemnity and/or lien
waivers  or  releases  from any party  with a right to file a lien  against  the
Project  as the  Title  Company  may  require  with  respect  to  insuring  (and
continuing to insure) the first Lien priority of Lender's  Mortgage  without and
except for any mechanic's or materialmen's liens.

            11.23. Specifications. One (1) set of the approved Site Plan and the
complete and  detailed  Specifications  which  Borrower  shall have  approved in
writing and which shall be satisfactory  to Lender and Inspector,  in their sole
discretion,  including  any  changes  or  modifications  thereto  and  including
Specifications for architectural,  structural,  mechanical, plumbing, electrical
work. All  Specifications  must be stamped with all required  approvals from all
Governmental Agencies,  certified under seal by Architect and signed by Borrower
and  Contractor  to be true  copies of the  Specifications  architecturally  and
structurally  approved  by all  authorities  and  agencies  having  jurisdiction
thereover.  They  must also  incorporate  the  recommendations  made in the soil
testing report, if any. No change shall be made thereafter in the Specifications
without the prior written consent of Lender.

      12. General Affirmative Covenants. Obligors covenant and agree with Lender
as follows:

                                       42
<PAGE>

            12.1. Payment and Performance of Obligations. Borrower shall pay all
of the Obligations,  Loan Costs and related expenses when and as the same become
due and payable,  and  Borrower  shall  strictly  observe and perform all of the
Obligations  including without  limitation,  all covenants,  agreements,  terms,
conditions and limitations  contained in the Loan  Documents,  and all documents
collateral  thereto and will do all things necessary which are not prohibited by
law to prevent the occurrence of any Event of Default hereunder or thereunder.

            12.2. Business Office. Borrower will maintain an office or agency in
Florida  where  notices,  presentations  and  demands  in  respect  of the  Loan
Documents  may be made upon  Borrower.  Such  office or agency and the books and
records of Borrower shall be maintained at 4960  Conference Way, Suite 100, Boca
Raton, Florida 33431.

            12.3. Maintenance of Existence,  Qualification and Assets.  Borrower
shall  at all  times  (i)  maintain  its  legal  existence,  (ii)  maintain  its
qualification  to transact  business  and good  standing in the State and in any
jurisdiction  where it conducts  business in  connection  with the Project,  and
(iii)  comply  or cause  compliance  in all  material  respects  with all  Legal
Requirements  applicable  to  the  Project,  Borrower,  the  Collateral  or  its
business,  including,  without limitation, the Condominium Act and the Timeshare
Act as they relate to the Project.

            12.4.  Consolidation  and Merger.  Unless  Borrower shall have first
obtained  Lender's  prior written  approval,  which may be granted,  withheld or
conditioned in Lender's sole  discretion,  Borrower will not consolidate with or
merge into any other  Person or permit any other Person to  consolidate  with or
merge into it.  Notwithstanding  the foregoing Borrower is permitted to merge or
consolidate  into  any  Affiliate  of  Borrower  or  Guarantor  or  with  Levitt
Corporation or an Affiliate of Levitt Corporation,  and such Affiliate may merge
into or consolidate with Borrower, subject to the provisions of Section 14.8.

            12.5. Maintenance of Insurance. Borrower shall comply with the terms
and conditions of the Agreement to Provide Insurance.

            12.6.  Maintenance  of Security.  Borrower shall execute and deliver
(or cause to be  executed  and  delivered)  to Lender all  security  agreements,
financing  statements,   assignments  and  such  other  agreements,   documents,
instruments and certificates,  and supplements and amendments thereto,  and take
such  other  actions,  as Lender  deems  necessary  or  appropriate  in order to
maintain as valid,  enforceable  and perfected first priority liens and security
interests,  all Liens and security interests in the Collateral granted to Lender
to secure the  Obligations.  Except  with the prior  written  consent of Lender,
Borrower shall not grant  extensions of time for the payment of,  compromise for
less than the full face value or release in whole or in part,  any  Purchaser or
other Person liable for the payment of or allow any credit whatsoever except for
the amount of cash paid upon, any

                                       43
<PAGE>

Collateral  or any  instrument,  chattel  paper  or  document  representing  the
Collateral.

            12.7.  Payment  of Taxes  and  Claims.  Borrower  will pay when due,
during  the  time  Borrower   maintains   direct  or  indirect  control  of  the
Association,  all taxes imposed upon the Project, the Collateral,  Borrower,  or
any of its  property,  or with  respect  to any of its  franchises,  businesses,
income or profits,  or with respect to the Loan or any of the Loan Documents and
all other charges and  assessments  against  Borrower,  the  Collateral  and the
Project  which  Borrower  is  legally  obligated  to pay  and  shall  cause  the
Association to pay when due, all taxes imposed upon the Project, the Collateral,
the  Association,  or  any  of  its  property,  or  with  respect  to any of its
franchises, businesses, income or profits, or with respect to the Loan or any of
the Loan Documents which the Association is legally obligated to pay, before any
claim (including,  without limitation, claims for labor, services, materials and
supplies)  arises for sums  which have  become  due and  payable.  Borrower  may
contest  such taxes in good faith as long as the Project is not subject to being
delinquent as a result of such challenge.  If the Association fails to make such
payments,  during the time Borrower  maintains direct or indirect control of the
Association, Borrower shall promptly pay such amounts. Borrower acknowledges and
agrees that Lender may require the  establishment  of an escrow account or a tax
escrow agent be retained to collect and pay any taxes payable by Borrower or the
Association. Except for (a) the Liens in favor of Lender granted pursuant to the
Loan Documents, (b) the Permitted Liens, (c) Liens as are expressly provided for
pursuant  to the  Timeshare  Declaration  related  to  unpaid  assessments  by a
Purchaser with respect to such Purchaser's  Timeshare Interest,  which shall, in
any event,  be  subordinate  to the Lien of Lender,  Borrower  covenants that no
statutory or other Liens whatsoever (including, without limitation,  mechanics',
materialmen's,  judgment or tax liens) shall attach to any of the  Collateral or
the Project.

            12.8. Inspections. Borrower shall, at any time and from time to time
and at the expense of Borrower,  permit Lender or its agents or  representatives
(including the Inspector) to inspect the Mortgaged Property,  the Collateral and
Borrower's  assets or property,  and to examine and make copies of and abstracts
from its and, to the extent it has access  thereto or  possession  thereof,  the
Association's,  books,  accounts,  records,  original  correspondence,  computer
tapes,  disks,  software,  and other papers as it may desire; and to discuss its
affairs, finances and accounts with any of its officers, employees,  Affiliates,
Contractors or independent  public  accountants (and by this provision  Borrower
authorize   said   accountants   to   discuss   with   Lender,   its  agents  or
representatives, the affairs, finances and accounts of Borrower). All audits and
inspections  which  shall not be more than one time per year unless and until an
Event of Default has occurred and is continuing  (including without  limitation,
those  occurring  before and after  closing  hereunder)  shall be at  Borrower's
expense, including all reasonable travel expenses of Lender's employees.

                                       44
<PAGE>

            12.9.  Records.  Borrower  shall keep adequate  records and books of
account  reflecting all financial  transactions  of Borrower and with respect to
the Project in which  complete  entries  will be made in  accordance  with GAAP.
Borrower  will  maintain to the  satisfaction  of Lender  accurate  and complete
books,  records and files relating to the Project,  the Collateral and the Work.
Borrower  shall  permit  Lender to audit  and  inspect  at any  time,  and shall
promptly  deliver to Lender  upon  Lender's  request  therefor,  all such books,
records and files.

            12.10. Management. Borrower shall cause the Project to be managed at
all times by  Manager or a Person or Persons  who have  substantial  experience,
background and demonstrated  ability to perform, in accordance with a Management
Agreement satisfactory to Lender, and who are in all other respects satisfactory
to Lender.

            12.11.  Maintenance.  Borrower shall maintain,  or shall cause to be
maintained, or to the extent provided for pursuant to the Timeshare Declaration,
shall cause the  Association  to maintain,  the Project in good repair,  working
order and condition and shall make all necessary  replacements  and improvements
to the Project so that the value and operating efficiency of the Project will be
maintained  at all times and so that the Project  remains in  compliance  in all
material  respects  with the  Timeshare  Act, the  Condominium  Act, the Project
Documents and all applicable Legal Requirements.

            12.12. Local Legal Compliance.  Borrower will comply, and will cause
the Mortgaged  Property to comply,  in all material respects with all applicable
restrictive  covenants,  applicable planning,  zoning or land use ordinances and
building codes, all applicable  health and  Environmental  Laws and regulations,
and in all material respects with all other applicable Legal Requirements.

            12.13. Registration Compliance.  Borrower will maintain, or cause to
be  maintained,   all  necessary  registrations,   current  filings,   consents,
franchises,  approvals,  and exemption  certificates,  and Borrower will make or
pay, or cause to be made or paid, all  registrations,  declarations or fees with
the Division and any other Governmental Agency,  whether in the state or another
jurisdiction which may be required in connection with the Mortgaged Property and
the occupancy,  use and operation  thereof,  the incorporation of Units into the
timeshare plan established pursuant to the Timeshare Declaration and the Project
Documents,  the  Club  Documents,  and the  sale,  advertising,  marketing,  and
offering for sale of Timeshare  Interests.  All such registrations,  filings and
reports  will be  truthfully  completed;  and true and  complete  copies of such
registrations, applications, consents, licenses, permits, franchises, approvals,
exemption  certificates,  filings  and  reports  will be  delivered  to  Lender.
Borrower shall advise Lender of any material changes with respect to their sales
programs for the Project.

                                       45
<PAGE>

            12.14.  Other  Compliance.  Borrower  will  comply  in all  material
respects with all Legal  Requirements,  including to the extent applicable,  but
not limited to: the  Timeshare  Act; the  Condominium  Act; the Consumer  Credit
Protection  Act;  Regulation Z of the Federal  Reserve  Board;  the Equal Credit
Opportunity  Act;  Regulation B of the Federal Reserve Board;  the Federal Trade
Commission's  3-day cooling-off Rule for Door-to-Door  Sales; ILSA; Section 5 of
the Federal Trade  Commission Act; the  Gramm-Leach-Bliley  Act;  federal postal
laws;  applicable  state and federal  securities  laws;  applicable  usury laws;
applicable  trade  practices,  home  and  telephone  solicitation,  sweepstakes,
anti-lottery  and consumer  credit and protection  laws;  applicable real estate
sales  licensing,  disclosure,  reporting and escrow laws; the ADA;  RESPA;  all
amendments to and rules and regulations  promulgated under the foregoing acts or
laws;  and other  applicable  federal  statutes  and the  rules and  regulations
promulgated thereunder; and any state law or law of any state (and the rules and
regulations  promulgated  thereunder)  relating to ownership,  establishment  or
operation  of the  Project,  or the sale,  offering  for sale,  or  financing of
Timeshare Interests.

            12.15.  Further  Assurances.  Borrower will execute and deliver,  or
cause  to  be  executed  and  delivered,  such  other  and  further  agreements,
documents,  instruments,  certificates  and  assurances  as, in the  judgment of
Lender  exercised  in  good  faith  may be  necessary  or  appropriate  to  more
effectively   evidence  or  secure,  and  to  ensure  the  performance  of,  the
Obligations.

            12.16.  Maintenance and Amenities.  Borrower will maintain,  or will
cause the Association to maintain,  during the time Borrower maintains direct or
indirect control of the  Association,  the Project in good condition and repair,
and in accordance  with the  provisions  of the  applicable  Project  Contracts,
Declarations and other Project Documents, and Borrower will cause each Purchaser
of a Timeshare Interest at the Project to have continuing access to, and the use
of to the  extent of such  Purchaser's  use  periods,  all of the  common  area,
Amenities,  and related or  appurtenant  services,  rights and benefits,  all as
provided in the Declarations, Project Documents and the Club Documents.

            12.17.  Loan  Costs.  Whether or not the  transactions  contemplated
hereunder  are  completed,  Borrower  agrees to pay all existing and future Loan
Costs. The provisions of this Section shall survive repayment of the Obligations
or termination of this Agreement.

            12.18.  Indemnification  of Lender.  In addition to (and not in lieu
of) any other provisions of any Loan Document  providing for  indemnification in
favor of Lender,  Borrower agrees to defend,  indemnify and hold harmless Lender
and its participants and their subsidiaries,  affiliates,  officers,  directors,
agents,  employees,  representatives,  consultants,  Contractors,  servants, and
attorneys, as well as the respective heirs, personal representatives, successors
or assigns of any or all of them (hereafter collectively the "Indemnified Lender
Parties"),  from and against,

                                       46
<PAGE>

and promptly  pay on demand or  reimburse  each of them with respect to, any and
all liabilities, claims, demands, losses, damages, costs and expenses (including
without  limitation,  reasonable  attorneys'  and  paralegals'  fees and costs),
actions or causes of action of any and every kind or nature whatsoever  asserted
against or  incurred by any of them by reason of or arising out of or in any way
related or  attributable  to: (a) any failure or alleged  failure of Borrower to
perform  any of its  covenants  or  obligations  with  respect to the  Mortgaged
Property  or to  the  Purchasers  of any of the  Timeshare  Interests;  (b)  the
development of the Mortgaged  Property;  (c) the  debtor-creditor  relationships
between  Borrower  on  the  one  hand,  and  the  Purchasers  or  Lender  or its
participants, as the case may be, on the other; (d) the operation of the Project
or sale of Timeshare Interests;  (e) Borrower's  performance under or related to
this Agreement,  the Loan Documents,  the Commitment or the Collateral;  (f) the
transactions  contemplated under any of the Loan Documents or any of the Project
Documents or Club  Documents to be  performed  by  Borrower,  including  without
limitation,  those in any way relating to or arising out of the violation of any
Legal Requirements, including the Condominium Act and the Timeshare Act; (g) any
breach of any covenant or agreement or the  incorrectness  or  inaccuracy of any
representation  and warranty of Borrower  contained in this  Agreement or any of
the Loan Documents  (including  without limitation any certification of Borrower
delivered to Lender);  (h) any and all taxes,  including  real estate,  personal
property, sales, mortgage, excise, intangible or transfer taxes, and any and all
fees or charges to be paid by Borrower  including,  without limitation under the
Timeshare  Act,  which may at any time arise or become due prior to the payment,
performance  and  discharge  in full of the  Obligations;  (i) the breach of any
representation  or  warranty  of  Borrower  as set forth  herein  regarding  any
Environmental  Laws;  (j) the failure of Borrower to perform any  obligation  or
covenant herein required to be performed pursuant to any Environmental Laws; (k)
the use, generation,  storage, release, threatened release, discharge,  disposal
or  presence  on,  under  or  about  the  Mortgaged  Property  of any  Hazardous
Materials;  (l) the removal or remediation  of any Hazardous  Materials from the
Mortgaged  Property required to be performed  pursuant to any Environmental Laws
or as a result of recommendations of any environmental consultant or as required
by Lender;  (m) claims asserted by any Person (including  without limitation any
governmental   or    quasi-governmental    agency,    commission,    department,
instrumentality   or   body,   court,   arbitrator   or   administrative   board
(collectively,  a "Governmental  Agency"),  in connection with or any in any way
arising out of the presence, use, storage, disposal, generation, transportation,
release,  or treatment of any Hazardous Materials on, in, under or affecting the
Mortgaged Property;  (n) the violation or claimed violation of any Environmental
Laws  in  regard  to  the  Mortgaged   Property;   (o)  the  preparation  of  an
environmental  audit or report on the Mortgaged  Property,  whether conducted by
Lender, Borrower, or a third-party, or the implementation of environmental audit
recommendations  or (p) any broker fees or commissions or similar  compensation.
Such  indemnification  shall not give Borrower any right to  participate  in the
selection of counsel for Lender or the

                                       47
<PAGE>

conduct or settlement of any dispute or proceeding for which indemnification may
be claimed.  Lender agrees to give Borrower  written  notice of the assertion of
any  claim or the  commencement  of any  action  or  lawsuit  described  in this
Section.

      It is the  express  intention  of the parties  hereto  that the  indemnity
provided for in this Section,  as well as the disclaimers of liability  referred
to in this  Agreement,  are intended to and shall protect and  indemnify  Lender
from the  consequences  of  Lender's  own  negligence  (but not  Lender's  gross
negligence or intentional  tortious  conduct)  whether or not that negligence is
the  sole or  concurring  cause  of any  liability,  obligation,  loss,  damage,
penalty,  action,  judgment,  suit, claim,  cost,  expense or disbursement.  The
provisions  of this Section  shall  survive the full  payment,  performance  and
discharge of the Obligations  and the  termination of this Agreement,  and shall
continue thereafter in full force and effect.

            12.19. Use of Borrower's Names.  Lender may use the name of Borrower
and the  Project  in any  press  release,  advertisement  or  other  promotional
materials  issued in respect to the Loan.  Lender will provide notice and a copy
of any such advertisement materials to Borrower.

            12.20.  Right to Provide Future  Financing.  Borrower  hereby agrees
that Lender  shall have the right to provide the  construction,  renovation  and
development financing for all future phases of timeshare Units to be constructed
in  connection  with the  Project.  Borrower  hereby  grants  to  Lender a first
opportunity   at  Lender's  sole   discretion,   to  provide  all   acquisition,
construction,  renovation and  development  financing for the Project,  upon the
same  financial  terms or terms more  favorable  to Borrower,  for  acquisition,
construction, renovation or development financing as contained in this Agreement
to be  secured by all of the  Collateral  and such  other  collateral  as may be
requested by Lender.

      Borrower  shall  not enter  into any  financing  agreement  with any other
Person  relating to the  acquisition,  construction,  renovation or  development
financing for the Project unless and until Borrower has provided  written notice
to Lender via certified mail (return receipt requested) that Borrower intends to
obtain such  financing and Lender has waived in writing the option and rights as
set forth in this section. Notwithstanding the foregoing, Lender shall be deemed
to have  waived the  option  and  rights as set forth in this  Section if Lender
fails to provide  Borrower with a signed letter of intent on terms acceptable to
Borrower regarding such financing within thirty (30) days from the date on which
Borrower has provided Lender with all information  required by Lender related to
such  financing.   The  provisions  of  this  Section  shall  survive   payment,
performance  and  discharge  of the  Obligations  and  the  termination  of this
Agreement,  and shall continue thereafter in full force and effect, and shall be
secured by all the  Collateral  pledged  by  Obligors  to Lender  under the Loan
Documents.

                                       48
<PAGE>

            12.21.  Inspector.  An  architectural  or engineering  firm or firms
acceptable to Lender (the  "Inspector")  may be retained by Lender at Borrower's
expense for the purpose of performing  inspections  as the Work  progresses  and
certifying that each Advance of the Loan is not in excess of the Work completed,
less  retainage,  and that proceeds of Loan are  sufficient to complete the Work
and covering such other matters as Lender shall  require.  Any such  inspections
shall be for  Lender's  sole  benefit and will not be relied  upon by  Borrower.
Borrower shall pay all reasonable  expenses of the Inspector in connection  with
periodic  inspections  of the  progress  of the  Work  and  any  pre-closing  or
post-closing meeting, audits or inspections.

            12.22.  Sales and Marketing.  Sales and marketing  activities at the
Mortgaged  Property  will be  conducted  by  Borrower  or a sales and  marketing
organization affiliated with, contracted with or employed by Borrower.

            12.23. Project Contracts.  Subject to the rights of the Association,
Lender shall have the right to review and approve all present and future Project
Contracts  which affect the Phase 2 Units or the Mortgaged  Property for amounts
equal  to or  greater  than  $50,000  per  year  per  Project  Contract  and all
modifications,  extensions  or  terminations  thereof,  all of  which  shall  be
acceptable to Lender in its reasonable  discretion,  which approval shall not be
unreasonably withheld or delayed.

            12.24. Consents.  Borrower shall obtain all consents,  approvals and
authorizations  for the transactions  contemplated  under this Agreement,  which
consents, approvals and authorizations must be in form and content acceptable to
Lender in its reasonable discretion.

            12.25.  Engineering  Survey. At any time upon the request of Lender,
to the  extent  Lender  has a  reasonable  basis to  believe a  problem  exists,
Borrower shall obtain, at Borrower's cost, an engineering report or reports,  by
an engineering firm acceptable to Lender, covering the Mortgaged Property and/or
Units confirming that the Units are mechanically and structurally sound. If such
report or reports discloses any defects or inadequacies, Borrower shall promptly
take all corrective actions, at Borrower's expense.

            12.26. Intentionally Omitted.

            12.27.  Exchange Company.  Lender has received evidence satisfactory
to  Lender  that  the  Project   has  been   accepted  by  Resort   Condominiums
International  LLC ("RCI") into its  reciprocal  exchange  program and continues
along with  Borrower (or  Guarantor)  to remain  affiliated  therewith as of the
Closing Date.  Borrower agrees that the Project shall at all times be affiliated
with either RCI or Interval International. Borrower agrees to pay the applicable
external  exchange  company any and all fees which are properly  assessed by the
exchange  company in

                                       49
<PAGE>

connection  with  Borrower's or the Project's  affiliation  therewith.  Borrower
shall continue to sell  memberships in the  applicable  exchange  company for so
long as it is authorized to do so.

            12.28. Intentionally Omitted.

            12.29. One to One Ratio Compliance.  Borrower covenants that it will
use its best  efforts to cause the Club manager to maintain at all times the One
to One Ratio in a manner consistent with the Club Documents.  Borrower shall use
its best  efforts to cause Club  manager to provide  Lender  with a report on an
annual basis which indicates and documents compliance with the One to One Ratio.

      13.  Reporting  Requirements.  So long as any  portion of the  Obligations
remains  unsatisfied or this Agreement has not been  terminated,  Borrower shall
furnish (or cause to be furnished, as the case may be) to Lender the following:

            13.1. Intentionally Omitted.

            13.2.  Quarterly  Financial Reports. As soon as available and in any
event  within  forty-five  (45) days after the end of each  fiscal  quarter,  if
applicable,  of  Guarantor,  a Form 10-Q of Guarantor  for such fiscal  quarter.
Lender will accept  electronic  notification  of the filing of Guarantor's  Form
10-Q with the SEC as delivery of Guarantor's financial statements required under
this Agreement.

            13.3.  Annual Financial  Reports of Guarantor.  As soon as available
and in any event within ninety (90) days after the end of each of calendar year,
the financial  statements  of Guarantor,  all in such detail and scope as may be
reasonably required and certified by Guarantor to be true, correct and complete,
and otherwise acceptable to Lender.  Lender will accept electronic  notification
of the filing of  Guarantor's  Form 10-K with the SEC as delivery of Guarantor's
financial statements required under this Agreement.

            13.4. Officer's Certificate. Each set of annual financial statements
and quarterly financial statements delivered to Lender pursuant to Sections 13.2
and 13.3 of this  Agreement  will be accompanied by a certificate of Borrower in
the form of  Exhibit  "G"  attached  hereto  setting  forth  that the signer has
reviewed the relevant  terms of this  Agreement  (and all other  agreements  and
exhibits between the parties) and have made, or caused to be made, under his/her
supervision,  a review of the  transactions  and  conditions of Borrower and the
Mortgaged  Property  from the  beginning of the period  covered by the financial
statements or reports being  delivered  therewith to the date of the certificate
and that such review has not disclosed  the existence  during such period of any
condition or event which  constitutes  an Incipient  Default or Event of Default
or, if any such  condition or event existed or exists or will exist,  specifying
the nature and period of existence thereof and what action Borrower has taken or
proposes to take with respect thereto.

                                       50
<PAGE>

            13.5. Audit Reports. Promptly upon receipt thereof, one copy of each
other report  submitted to Borrower by independent  public  accountants or other
Persons in connection with any annual,  interim or special audit made by them of
the books of Guarantor or the Mortgaged Property .

            13.6.  Inventory  Report and Sales Reports.  Within twenty (20) days
after the end of each  month,  Borrower  shall  deliver  to Lender an  inventory
report as of the prior month end, detailing the status  (available,  restricted,
trades, write off, sold (separating deeded sold and pre-sale sold) and model) of
all Timeshare Interests in Phase 2 of the Project. Within twenty (20) days after
the end of each month, Borrower shall deliver to Lender a sales report as of the
prior month end,  detailing sales,  cancellations  and closings for the previous
month of Timeshare  Interests in Phase 2 of the  Project.  Such monthly  reports
shall be certified by Borrower to be true,  correct,  and complete and otherwise
in a form  approved  by Lender.  Borrower  shall also  provide  Club  reports if
requested by Lender.

            13.7.  Association  Reports.  As soon as available  and in any event
within one hundred  and eighty  (180) days after the end of each fiscal year for
the  Association  a  balance  sheet and  income  statement  for the  Association
prepared in accordance with GAAP and on a basis consistent with prior accounting
periods.  The annual financial  statements of the Association shall be certified
by the  President  of the  Association  to be true,  correct  and  complete  and
otherwise acceptable to Lender.

            13.8.  Notice  of  Default  or Event of  Default.  Immediately  upon
becoming  aware of the existence of any condition or event which  constitutes an
Incipient Default or an Event of Default, a written notice specifying the nature
and period of existence  thereof and what action  Borrower are taking or propose
to take with respect thereto.

            13.9.  Notice of Claimed  Default.  Immediately  upon becoming aware
that the  holder of any  material  obligation  or of any  evidence  of  material
indebtedness of Borrower has given notice or taken any other action with respect
to a claimed  default or event of default  thereunder  which  default or claimed
default  would in Lender's  reasonable  judgment have an effect on Borrower's or
Guarantor's  ability to perform each of their obligations  hereunder,  a written
notice specifying the notice given or action taken by such holder and the nature
of the claimed default or event of default and what action Borrower is taking or
proposes to take with respect thereto.

            13.10.  Material  Adverse  Developments.  Immediately  upon becoming
aware  of any  litigation,  claim,  action,  proceeding,  development  or  other
information  which is expected to  materially  and  adversely  affect  Borrower,
Guarantor, the Collateral, the Project, or the business,  prospects,  profits or
condition  (financial  or  otherwise)  of Borrower,  Guarantor or the ability of
Borrower or Guarantor to perform its Obligations under the Loan Documents, or of
the existence of any

                                       51
<PAGE>

dispute  between  Borrower and any  governmental or regulatory body or any other
party which dispute is expected to materially delay or interfere with Borrower's
normal  business  operations or the Work,  Borrower  shall  provide  Lender with
telephonic or  telegraphic  notice,  followed by telecopied  and mailed  written
confirmation, specifying the nature of such litigation, development, information
or dispute and such anticipated effect. At the request of Lender, Borrower shall
appear in and defend in favor of Lender, at Borrower's sole expense, with regard
to any such claim, action or proceeding.

            13.11. Other  Information.  Borrower will promptly deliver to Lender
any other information related to the Work, the Collateral, the Project, Borrower
or Guarantor, as Lender may in good faith request.

      14. Negative Covenants.  Obligors hereby covenant and agree with Lender as
follows:

            14.1.  Organization.  Obligors will not amend,  modify or supplement
their Governing Documents in any material respect.

            14.2.  Project  Contracts.  No Project  Contract equal to or greater
than $50,000 per year shall be modified,  extended,  terminated or entered into,
without  the prior  written  approval  of Lender,  which  approval  shall not be
unreasonably withheld or delayed.

            14.3. Limitation on Other Debt/Further  Encumbrances.  Borrower will
not obtain financing or grant Liens with respect to the Mortgaged Property,  the
Project Contracts, the Collateral,  any Units or Timeshare Interests, other than
loans from and Liens in favor of Lender and other than the Permitted Liens.

            14.4. Intentionally Omitted.

            14.5.  Amendment  of  Declarations,  Etc.  To the extent  within the
direct or  indirect  control of  Obligors,  Obligors  will not without the prior
written  consent of Lender,  which consent shall not be  unreasonably  withheld,
record,  file or permit any  amendment  of the  Declarations  or the Articles of
Incorporation or By-Laws of the Association, or assign any of their rights under
the  Declarations.  Without the prior written  consent of Lender,  which consent
shall not be  unreasonably  withheld  or delayed,  Borrower,  as owner of Units,
shall not vote in favor of any amendment of the  Declarations or the Articles of
Incorporation or By-Laws of the Association.  Further, Borrower shall not assign
any of its rights under the Declarations to any Person other than Lender.

            14.6.  Ownership.  Obligors  will  not  permit  any  change  in  the
ownership  interests  in  Borrower  or any change,  direct or  indirect,  in the
management or control of Borrower as a result of which  Guarantor  will cease to
own 100% of all outstanding and issued stock of Borrower.

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<PAGE>

            14.7.  Other Liens or Assignments.  Obligors will not sell,  convey,
transfer,  pledge,  hypothecate,  encumber,  grant or  permit to exist a lien or
security  interest in any of the Collateral or in any of the Project  Contracts,
other  than  liens in favor of  Lender,  matters  set forth in the title  policy
provided Lender and other than those liens  identified on Schedule 14.7 attached
hereto  (collectively  the "Permitted  Liens").  Notwithstanding  the foregoing,
Obligors may sell  Timeshare  Interests to Purchasers in the ordinary  course of
Obligors'  business,  provided that Obligors pay to Lender the required  Release
Payments related to such sales.

            14.8. Merger,  Etc. Obligors will not change their respective names,
enter into any merger,  consolidation  or  reorganization  or  reclassify  their
ownership interests without the prior written consent of Lender, except Borrower
may merge or consolidate into an Affiliate of Borrower or Guarantor or Guarantor
may merge or  consolidate  or be acquired by Levitt  Corporation or an Affiliate
thereof.  If Guarantor  merges or  consolidates  into Levitt  Corporation or any
Affiliate  thereof,  Borrower or Guarantor  shall  (subject to  compliance  with
applicable  Legal  Requirements)  provide  Lender  with at  least  fifteen  (15)
Business Days written notice prior to the public  announcement of such merger or
consolidation.

            14.9.  Use of Lender's  Name.  Without the prior written  consent of
Lender,  Borrower will not, and will not permit any Affiliate of any Borrower to
use the name of Lender or the name of any affiliate of Lender in connection with
any of their  respective  businesses or  activities,  except in connection  with
internal  business  matters  and  as  required  in  dealings  with  governmental
agencies.  Guarantor  shall be permitted  to use  Lender's  name in its investor
relations presentations.

            14.10.  Transactions  with  Affiliates.  Without  the prior  written
consent  of  Lender,  Borrower  will not  enter  into any  transaction  with any
Affiliate of Borrower in connection with the Mortgaged  Property (except for the
Management Agreement),  including, without limitation, relating to the purchase,
sale or exchange any assets or properties or the rendering of any service.

            14.11. Name or Address Change. Borrower will not change its name and
will not  change its chief  executive  office or the  location  at which they do
business  without at least fifteen (15) days prior written  notice to Lender and
delivery  to Lender of such UCC  amendments  or other  financing  statement  and
access agreement as Lender may require to maintain  Lender's Lien against any of
the  Collateral  and Lender's  ability to obtain access to such  Collateral  and
Borrower's books and records.

            14.12. Intentionally Omitted.

            14.13. Distributions. Obligors will not declare or pay any dividends
or  distributions  if any Event of Default  then  exists or if such  dividend or
distribution would result in an Incipient Default or an Event of Default, except
Borrower may

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<PAGE>

make  dividends or  distributions  to Guarantor and Guarantor may make dividends
and distributions to its shareholders at any time.

            14.14. Intentionally Omitted.

            14.15. Intentionally Omitted.

            14.16. Restrictions on Transfers.  Without the prior written consent
of  Lender,  Obligors  shall  not,  whether  voluntarily  or  involuntarily,  by
operation of law or otherwise: (a) transfer, sell, pledge, convey,  hypothecate,
factor or assign all or any portion of the Mortgaged Property or the Collateral,
or contract to do any of the foregoing,  including, without limitation, pursuant
to options to purchase,  and  so-called  "installment  sales  contracts,"  "land
contracts" or "contracts for deed" (except that Borrower shall have the right to
sell Timeshare Interests to Purchasers in arms-length  transactions);  (b) lease
or license the Mortgaged Property or any portion of the Mortgaged  Property,  or
change the legal or actual possession or use thereof; or (c) cause or permit the
assignment,  pledge or other  encumbrance of any of the Project Contracts or all
or any portion of Borrower's right, title or interest in the Declarations.

            14.17.  Restrictive Covenants.  Without the prior written consent of
Lender,  Borrower will not consent to, or otherwise  acquiesce in, any change in
any private  restrictive  covenant,  planning  or zoning law or other  public or
private  restriction,  which  would  limit  or  alter  the use of the  Mortgaged
Property, except Borrower may record documents in connection with development of
the Project provided same are consented to by Lender.

            14.18. Intentionally Omitted.

            14.19. Intentionally Omitted.

            14.20. Intentionally Omitted.

            14.21.  Amenities.  Borrower  will  not  make  any  promises  of  or
representations  regarding  any  Amenities  and  their  availability  for use by
Purchasers,  unless  such  Amenities  are fully  completed  and the right of the
Purchasers  to use such  Amenities is set forth in a legally  binding  agreement
approved by Lender in writing or such potential use is accurately disclosed.

            14.22.  Changes in  Accounting.  Borrower  and  Guarantor  shall not
change  their method of  accounting  unless such change is permitted by GAAP and
provides such change does not have the effect of curing or preventing what would
otherwise  be an Event of Default if such change had not taken place unless such
change is required by GAAP.

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<PAGE>

            14.23. Club Reservation System. Should the Reservation System become
otherwise  unavailable  to the  Club as a  result  of  termination  of the  Club
management  contract by and between the Vacation Club Managing Entity,  Vacation
Trust,  Inc.,  a Florida  corporation,  as Trustee  pursuant to the terms of the
Trust  Agreement  (as  defined in the POS) (the "Club  Trustee")  and  Bluegreen
Vacation Club, Inc. ("Management Contract") or as a result of termination of the
existence of the Vacation Club Managing Entity, then Borrower or Guarantor shall
use their best efforts to cause the appropriate persons or entities to comply in
all  material  respects  with the F.S.  Ch 721 - the Florida  Vacation  Plan and
Timesharing Act  (specifically  Florida  Statutes  Chapter 721.56 (5), as may be
applicable,  together with the then-current  Bluegreen  Vacation Club Multi-Site
Public  Offering  Statement  approved by the Division  ("POS"),  which presently
provides that in the event of termination of the Vacation Club Managing  Entity,
a trust arrangement meeting the criteria of 721.56(5)(b) shall be established to
provide for an adequate period of continued  operation of the Reservation System
for the Club until a substitute reservation system can be acquired.

      15.   Affiliate   Indebtedness.   Borrower   agrees  that  all   Affiliate
Indebtedness  at any time  owing by  Borrower  shall be  unsecured  and shall be
absolutely   subordinated  to  the  Obligations  except  payments  of  Affiliate
indebtedness  may  be  made  so  long  as no  Event  of  Default  exists  and is
continuing.   Except  as  set  forth  above,  Borrower  will  not,  directly  or
indirectly:  (a) permit any  payment to be made in respect of any  indebtedness,
liabilities or  obligations,  direct or contingent,  to any Affiliate  which are
subordinated  by the terms  thereof or by separate  instrument to the payment of
the Obligations, except in accordance with the terms of such subordination;  (b)
permit the amendment, rescission or other modification of any such subordination
provisions of any of Borrower's subordinated  obligations in such a manner as to
affect  adversely  Lender's  Lien in and to the  Collateral  or Lender's  senior
priority  position and  entitlement as to payment and rights with respect to the
Obligations;  or (c) permit the prepayment or redemption,  of all or any part of
Borrower's obligations to any Affiliate,  or of any subordinated  obligations of
Borrower, except in accordance with the terms of such subordination provisions.

      16. Financial Covenants.

            16.1. Minimum Tangible Net Worth.  Guarantor shall maintain Tangible
Net Worth  determined on a consolidated  basis of not less than (a) $225,000,000
plus 50% of  Guarantor's  consolidated  Net Income for the  fiscal  year  ending
December 31, 2007, as of the date of this Agreement and at all times thereafter,
which  shall be  measured  and  confirmed  quarterly  and  annually  to Lender's
satisfaction,  until the Loan is paid in full and  Lender  shall have no further
obligation to fund any Advances  hereunder.  The terms  "Tangible Net Worth" and
"Net Income" shall have the meanings given to them under GAAP.

                                       55
<PAGE>

            16.2. Minimum Debt to Tangible Net Worth Ratio.  Guarantor shall not
permit the ratio of its total debt  (excluding  liabilities  subordinated to the
Loan and non-recourse  receivable backed debt), as determined in accordance with
GAAP, to its Tangible Net Worth as determined in accordance with GAAP, to exceed
2.5 to  1.0,  which  shall  be  measured  and  confirmed  annually  to  Lender's
satisfaction  until the Loan is paid in full and  Lender  shall  have no further
obligations to fund any Advance hereunder.

      17.  Conditions  of and  Documents to be  Delivered  at the  Closing.  The
following are conditions of Closing.  To the extent that the conditions  involve
the  delivery to Lender of any  documents  or other due  diligence  items,  such
documents  and items  must be in form and  content  acceptable  to Lender in its
discretion.

            17.1. Loan Documents. Lender shall receive all of the Loan Documents
duly executed by all parties thereto.

            17.2. Opinions of Counsel.  Lender shall receive an opinion of local
Wisconsin and corporate counsel for Obligors and the Association.

            17.3. Project Documents.  Lender shall receive a copy of each of the
following and all amendments thereto,  certified as to accuracy and completeness
by the Borrower:

                  (a) Declarations;

                  (b) Condominium and/or Timeshare Plan;

                  (c) The Public Report;

                  (d) Projected cash flows for the Mortgaged Property;

                  (e) Association Articles of Incorporation and By-laws;

                  (f) Management Agreement;

                  (g) Rules and Regulations;

                  (h) Owner's purchase contract and warranty deed; and

                  (i)  Such  other  Project  related  documents  as  Lender  may
require.

      17.4. Association Documents.  Lender shall receive a copy of the Governing
Documents of the Association and all amendments thereto.

      17.5.  Obligors'  Documents.  Lender shall receive a copy of the Governing
Documents of each Obligor and all amendments  thereto,  certified as to

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<PAGE>

accuracy and  completeness by either an officer of such Obligor or by the public
official in whose office the same are recorded or filed.

            17.6. Good Standing Certificates.  Lender shall receive current good
standing  certificates  issued  by  the  secretaries  of  the  states  of  their
respective formation and all other states in which they do business,  confirming
the current good standing and qualification of each Obligor in such states.

            17.7.  Insurance.  Lender shall receive certificates of insurance or
policies of insurance  evidencing that all insurance (including flood insurance,
if required) required by the Timeshare Declaration,  the Lender's Mortgage, this
Agreement or the Agreement to Provide Insurance is in force and will not attempt
to cancel  without at least  thirty (30) days  written  notice by the  insurance
carrier to Lender.

            17.8.  Flood  Insurance.  If any  portion  of any of the  Project is
within an area  designated by the Director of the Federal  Emergency  Management
Agency,  pursuant to the Flood Disaster  Protection Act of 1973, as amended,  as
one having special flood hazards, Obligors shall deliver to Lender evidence that
the  buildings  and other  improvements  within  such areas are covered by flood
insurance to the maximum limit of coverage  available  under the Flood  Disaster
Protection Act of 1973, as amended.  If no portion of the Project is within such
a special flood hazard area,  Obligors shall provide Lender with confirmation of
such fact from a surveyor,  the  municipality in which the Project is located or
Obligors' counsel.

            17.9.  Authorizing  Resolutions.  Lender shall receive a copy of the
resolutions of each Obligor authorizing the transactions  contemplated hereunder
and the execution of the Loan Documents and all  collateral  documents on behalf
of each Obligor.

            17.10. UCC-1 Financing Statements. Lender shall receive confirmation
that UCC-1 financing  statements  naming Lender as secured party and Borrower as
debtor describing all Collateral now or hereafter assigned by Borrower to Lender
pursuant  hereto  have been  filed with the  Secured  Transactions  Registry  of
Florida and the Public Records for St. Johns County, Florida.

            17.11.  UCC-1 Search  Report.  Lender shall receive a current search
report  from a UCC search  company  approved by Lender  setting  forth all UCC-1
filings,  tax liens and judgment  liens made against each  Obligor.  Such search
report must indicate that at the time of the filing of the financing  statements
(Form UCC-1) in favor of Lender there were on file no  financing  statements  or
liens evidencing a security interest in any Collateral.

            17.12.  Releases.  Lender shall receive  releases and  satisfactions
from all persons or entities holding liens,  claims or encumbrances  against the
Mortgaged Property or any of the Collateral.

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<PAGE>

            17.13.  Closing  Certificates.  Lender  shall  receive the  executed
closing   certificate   of  each   Obligor   certifying   to  Lender   that  all
representations  and  warranties of Obligors in this  Agreement are accurate and
complete and that Obligors or have complied with all covenants and conditions of
closing set forth in this Agreement.

            17.14.  Compliance.  Lender shall receive  evidence  satisfactory to
Lender  that  Borrower,  Guarantor  and the  Project  are in  compliance  in all
material respects with all Legal Requirements.

            17.15.  Borrower's  Certificate  of Indemnity.  Lender shall receive
Borrower's  Certificate  of  Indemnity,   if  necessary,  in  form  and  content
sufficient  to permit the Title  Company to delete any  exception for parties in
possession,  matters of  survey,  mechanics'  or  materialmen's  liens,  the gap
period, and taxes and assessments which are due and payable.

            17.16. Mortgagee Title Insurance Commitment and Policy. Lender shall
receive a commitment to issue a Title Policy  underwritten by the Title Company,
in an  amount at least  equal to  $12,500,000  and  insuring  that the  Lender's
Mortgage creates a first lien in and to the Mortgaged Property without exception
for any persons claiming a right to use or occupy the Mortgaged  Property except
as agreed to by Lender,  filed and unfiled  mechanics'  liens and claims,  taxes
(whether  liened or not) or for matters which an accurate  survey would disclose
and subject  only to such  exceptions  and  conditions  to title as Lender shall
approve in writing.  Borrower  shall also cause to be  delivered to Lender a pro
forma lender's policy of title  insurance.  The Title Policy shall be consistent
with the title commitment and pro forma lender's policy. Such Title Policy shall
contain such affirmative  coverage as Lender deems necessary,  including but not
limited  to, an  affirmative  statement  or  endorsement  that the Title  Policy
insures Lender against all  mechanics' and  materialmen's  liens arising from or
out of  construction  of the Work and  shall  contain  endorsements  in form and
content  reasonably  acceptable to Lender:  (a) insuring  against  matters which
would  be  disclosed  on an  accurate  survey;  (b)  insuring  that no  building
restriction or similar exception to title disclosed on the Title Policy has been
violated  and that any  violation  thereof  would  not  create  or result in any
reversion,  reverter or  forfeiture  of title;  (c) insuring  compliance  of the
Project  with all  zoning  requirements;  (d)  insuring  over any  environmental
superlien or similar lien; (e) a contiguity  endorsement  (if  applicable);  (f)
available interest rate endorsement;  and (g) any other endorsements  reasonably
requested by Lender. The Title Policy shall provide that Lender shall receive an
endorsement to the Title Policy on the date of each Advance: (i) indicating that
since  the date of the last  preceding  Advance  there has been no change in the
state of title and no mechanics' or materialmen's lien, claim or lien or similar
notice has been filed against the Project; (ii) updating the Title Policy to the
date of such Advance;  and (iii)  increasing the coverage of the Title Policy by
an amount equal to such  Advance,  if the Title Policy does not by its own terms
provide for such an increase.  The

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<PAGE>

condition of title must be  satisfactory  to Lender in all  respects.  The final
Title Policy must be  delivered to Lender at or promptly  after the Closing Date
but in no  event  later  than  thirty  (30)  days  following  the  Closing  Date
consistent  in all respects  with the title  commitment  and pro forma  lender's
policy.

            17.17. Taxes and Assessments. Lender shall receive evidence that all
taxes and assessments related to the Project have been paid, or will be paid out
of closing proceeds,  which taxes and assessments  include,  without limitation,
real property  taxes,  and any  assessments  related to the Mortgaged  Property.
Borrower shall have provided evidence satisfactory to Lender that the Units have
been segregated from all other property on the applicable municipal tax rolls.

            17.18.  Preclosing  Inspections.  Lender  shall have  conducted  and
approved due diligence investigations satisfactory to Lender of the Obligors and
the Mortgaged Property.

            17.19.  Expenses.  Obligors  shall  have paid all fees and  expenses
required to be paid to Lender prior to or at Closing pursuant to this Agreement.

            17.20. Intentionally Omitted.

            17.21. Intentionally Omitted.

            17.22.  Permits and Approvals.  Lender shall have received copies of
all existing building and renovation permits, all other applicable  governmental
permits,  approvals,  consents  and  licenses  for the  Mortgaged  Property  and
satisfactory  evidence that the Mortgaged  Property and the intended uses of the
Mortgaged  Property are and will be in compliance  with all Legal  Requirements.
Such evidence may include  letters,  licenses,  permits,  certificates and other
correspondence  from  the  appropriate  governmental  authorities,  opinions  of
Borrower's  attorney  or other  attorneys,  as  Lender  may  determine  or other
confirmation  acceptable  to Lender.  All such  approvals  shall  continue to be
legally valid and shall remain in full force and effect after issuance and until
the Loan is repaid in full.

            17.23. Project Contracts. Lender shall have received executed copies
of all Project Contracts.

            17.24.  Compliance with Planning and Zoning  Stipulations.  Obligors
shall have  furnished  Lender with  evidence of  compliance  of the Project with
applicable zoning and other governmental requirements as Lender may require.

            17.25.  Project  Broker.  Lender shall have  received  evidence that
Borrower  has  retained a broker of record for the Project as may be required by
applicable law.

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<PAGE>

            17.26.  Escrow Agreements.  Lender shall have received such executed
Escrow Agreements as Lender may reasonably require.

            17.27.  Credit References.  Lender shall have received  satisfactory
credit  references  on the Obligors  and the officers of the Obligors  from such
creditors as may be required by Lender.

            17.28. Construction Equity. Lender shall have received evidence that
Borrower  is funding  from its own funds (and not with  proceeds of the Loan) at
least  15% of the  verifiable  costs to  complete  the  Work for  Phase 2 of the
Project.

            17.29.  Post-Closing  Requirements.  If  Lender  agrees  in its sole
discretion  to  complete  closing  under  this  Agreement  even  though  certain
conditions or requirements  have not been  satisfied,  Obligors agree to satisfy
such  conditions  and  requirements  within  the time  periods  set forth in any
post-closing  letter agreement,  but is not otherwise  specified in any event no
later than 90 days after the date of this Agreement.

            17.30.  Other.  Lender  shall have  received  such other  documents,
opinions and items as Lender may reasonably request.

      By completing  the closing  hereunder,  or by making  advances  hereunder,
Lender does not thereby waive a breach of any warranty or representation made by
Borrower or  Guarantor  hereunder  or any  agreement,  document,  or  instrument
delivered to Lender or otherwise  referred to herein,  and any claims and rights
of  Lender  resulting  from any  breach  or  misrepresentation  by  Borrower  or
Guarantor is specifically reserved by Lender.

      18. Conditions to Lender's  Obligation to Make Construction  Advances.  In
addition to, but not in limitation  of, any other  conditions  set forth in this
Agreement, Lender's obligation to make any Construction Advance shall be subject
to  fulfillment  of the following  conditions to Lender's  satisfaction.  To the
extent that the  conditions  involve the delivery to Lender of any  documents or
other due diligence items,  such documents and items must be in form and content
reasonably acceptable to Lender in its discretion.

            18.1. Documents.  Lender shall have received the documents and items
required under Section 17, as applicable.

            18.2.   Representations  and  Warranties.  The  representations  and
warranties of Obligors  contained in this  Agreement or otherwise  made by or on
behalf of Obligors to Lender in connection  with the  transactions  contemplated
hereby  shall have been true and  complete  when made and as of the time of each
Construction Advance.

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<PAGE>

            18.3.  Covenants.  Obligors shall have fully  performed and complied
with all agreements and conditions contained in the Loan Documents.

            18.4.  No Default.  No Incipient  Default or Event of Default  shall
have occurred.

            18.5. Request for Construction Advance. Except as otherwise provided
in this Agreement, Lender shall have received a Request for Construction Advance
duly executed on behalf of Borrower with such supporting documentation as Lender
may require. Each Request for Construction Advance shall:

                  (a) specify the principal amount of the  Construction  Advance
requested  and the specific  category and amount of costs of the Work to be paid
with the proceeds thereof;

                  (b) be submitted  with a completed  standard  AIA  requisition
form or equivalent that describes the total cost budget in detail,  by line item
categories on the construction  budget,  with each line item including detail of
the  total  amount  completed  and  stored to date,  the  total  amount of prior
Construction  Advances, the amount of the current requested Construction Advance
and the balance to complete the remainder of the Work on Phase 2 of the Project;

                  (c) be signed by an officer of Borrower;

                  (d) contain a certification  by Borrower and/or the Inspector,
to the effect  that the  progress  of  construction  is in  accordance  with the
applicable Specifications and is such that the applicable Work will be completed
by the Phase 2 Completion Date; and

                  (e) be accompanied by an internal cost report (including check
numbers for bills paid) and if  requested  by Lender then such  further  back-up
(including copies of bills and paid invoices),  as reasonably requested or other
documentation  satisfactory  to  Lender  that  provide  evidence  for the  costs
requested to be advanced and evidence, as necessary,  that Construction Advances
made  pursuant to prior  Requests for  Construction  Advance for costs that were
billed and not yet paid have been expended as requisitioned.

                  (f) state that the  representations,  warranties and covenants
of Borrower  contained  in this  Agreement  and any  closing or funding  related
certifications  are true and  correct as of the date of the request  and,  after
giving effect to the making of such requested Advance,  will be true and correct
as of the date on which the requested Advance is to be made;

                  (g) state that no Default or Event of Default exists as of the
date of the request  and,  after giving  effect to the making of such  requested
Advance,

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<PAGE>

no Default or Event of Default would exist as of the date on which the requested
Advance is to be paid;

            18.6. Soft Costs.  Lender shall have received written  documentation
which  satisfactorily  accounts to Lender for the expenditure of funds allocated
to the payment of any "soft" costs set forth on the Phase 2 Cost Certificate.

            18.7.  Other  Agreements.  Each  agreement  required  to  have  been
executed and delivered in connection  with any prior Advance shall be consistent
with the terms of this Agreement and shall be in full force and effect.

            18.8. Construction  Documents.  Lender shall have received copies of
the fully executed  Construction  Contract,  in form and content satisfactory to
Lender in its sole  discretion.  Lender  shall have  received  the  consents and
agreement of the Contractor, as required under Section 11.3.

            18.9. Contractor's Insurance. Lender shall have received evidence of
the insurance carried by the Contractor,  in coverage and amount satisfactory to
Lender, in Lender's reasonable discretion.

            18.10. Intentionally Omitted.

            18.11. Intentionally Omitted.

            18.12.  Certificates  of Substantial  Completion.  Lender shall have
received Certificates of Substantial  Completion from the Contractor,  Inspector
and Borrower for all Work performed to date.

            18.13. Compliance. Lender shall have received a certificate from the
Borrower  stating that the Work has been in accordance  with the  Specifications
and that such Work, the Mortgaged Property,  the Collateral and Obligors have at
all times been in compliance with all Legal  Requirements.

            18.14. Lien Waivers,  etc. Title Company and Lender, as appropriate,
shall have received any and all affidavits,  indemnity agreements, lien waivers,
certificates  and other documents that may be required by the Title Company as a
condition to insuring all  Construction  Advances  under the Title Policy.  Such
other  documents  shall  include,  but not be limited to, paid invoices and lien
waivers from the Contractor relating to the Work.

            18.15.  Title Policy  Endorsements.  Lender  shall have  received an
endorsement to the Title Policy dating down the Title Policy to the date of each
Advance  under the Loan;  indicating  that since the original  date of the Title
Policy  there has been no  change in the state of title and no title  exceptions
not approved by Lender and such other  endorsements to the Title Policy required
by Lender;  insuring the lien of the Lender's Mortgage free and clear of any and
all  mechanics'

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liens related to the Work; and, if necessary,  increasing the insurance coverage
to cover all Construction Advances related to the Work.

            18.16.  Fees and  Expenses.  Obligors  shall  have paid all fees and
expenses  then due and  payable  and  required  to be paid by  pursuant  to this
Agreement  in  connection  with  such  requested  Construction  Advance  or  any
conditions related thereto.

            18.17.  Permits and Approvals.  Lender shall have received copies of
all  building  and  renovation   permits  and  all  other   licenses,   permits,
certificates  and approvals  required in connection with the Work to be financed
with the requested Construction Advance.

            18.18.  Lender's  Mortgage.  Lender shall have no obligation to make
any Construction  Advance unless:  (i) the Lender's  Mortgage shall constitute a
first lien on the Mortgaged Property,  subject only to the Permitted Liens; (ii)
there shall exist no other lien of any sort, whether prior or inferior, than the
lien of the Lender's Mortgage;  and (iii) Lender shall have received a date-down
of the  Title  Policy  effective  as of the date of the  requested  Construction
Advance insuring the foregoing.

            18.19.  Completion of Work. Lender shall also be under no obligation
to make any  Construction  Advance:  (a) if Lender  reasonably  determines  that
construction of the Work cannot be completed by the Phase 2 Completion Date; (b)
if Lender is not  reasonably  satisfied  that the proceeds of the Loan remaining
undisbursed  plus the future  required  equity of Borrower will be sufficient to
complete all of the Work according to the applicable  Specifications  and to pay
for all  labor,  materials  and  costs and all  other  costs  and  disbursements
required to complete the Work,  including  interest  and other  non-construction
costs;  (c) if the Project shall have been  materially  damaged by fire or other
casualty;  or (d) if the  Work is not  substantially  completed  by the  Phase 2
Completion Date.

            18.20.  Additional Equity.  Lender shall also be under no obligation
to make any  Construction  Advance unless  Borrower shall have furnished  Lender
with  evidence  in form and  substance  reasonably  acceptable  to Lender  which
establishes  that  Borrower  has  paid  or is  paying  a  minimum  of 15% of the
verifiable costs of the Work related to such Construction Advance.

            18.21.  Advances Do Not Constitute a Waiver. No Construction Advance
shall  constitute  a waiver of any  condition  of  Lender's  obligation  to make
further Construction Advances.

            18.22. No Obligation to Fund After Filed Liens. Lender shall have no
obligation  to advance  any monies at any time (a) that there is a claim of lien
filed of  record  against  the  Mortgaged  Property  which  has not  been  paid,
transferred to other  security or otherwise  satisfactorily  discharged,  or (b)
that any  condition

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<PAGE>

precedent to such Advance has not been met, or (c) Borrower shall have failed to
comply with any material provision of this Agreement, or (d) an Event of Default
or  Incipient  Default  has  occurred  and is  continuing,  or (e) there  should
otherwise be a material  dispute,  involving the Contractor and a  Subcontractor
with each  other or with  Borrower,  which  Lender  believes  in its  reasonable
judgment  must be  resolved  prior  to  funding  additional  Advances.  Lender's
commitment to make Construction  Advances  hereunder shall at no time be subject
to or  liable  to  attachment  or levy by any  creditor  of  Borrower  or by the
Contractor, or any agent, contractor,  subcontractor or supplier of Borrower. No
such Persons are intended to be third party  beneficiaries  of this Agreement or
any documents or  instrument  related to the Loan or to have any claim or claims
in or to any undisbursed or retained Loan proceeds.

            18.23.  Stored  Goods.  Lender  shall  have the right to  approve or
disapprove Advances for stored or ordered goods.

            18.24.  Other.  Lender and its counsel shall have received copies of
such  documents and papers as Lender or such counsel may  reasonably  request in
connection with such requested Construction Advance.

      19.  Default.  The  occurrence of any one or more of the following  events
shall constitute an "Event of Default" hereunder:

            19.1. Payments. Borrower shall fail to make when due, any payment or
mandatory prepayment of principal or interest, any Loan Costs, Release Payments,
advance  fees,  other  fees or any other  payment  obligations  within  five (5)
Business Days of the date the payment is due.

            19.2.  Covenant Defaults.  Borrower shall fail to perform or observe
any of  Obligations,  covenants,  agreements  or  warranties  contained  in this
Agreement  or in any of the Loan  Documents,  and such  failure  shall  continue
unremedied  for a period of twenty  (20) days  after the notice  from  Lender to
Borrower  of the  existence  of such  failure,  provided  that in the event that
Borrower is entitled  to cure such  failure  within such twenty (20) day period,
but due to the nature of such failure,  the cure cannot be completed  within the
twenty (20) day period  notwithstanding  Borrower's  diligent  efforts to do so,
then Borrower  shall have an  additional  twenty (20) days to complete such cure
(for a total of forty (40) days),  provided that Borrower is diligently  seeking
to cure such default within the additional twenty (20) day period.

            19.3. Warranties or Representations. Any representation,  warranties
or other  statement  made by or on  behalf  of  Borrower  or  Guarantor  in this
Agreement,  in any of the  Loan  Documents  or in any  instrument  furnished  in
compliance with or in reference to the Loan Documents,  is false,  misleading or
incorrect in any material respect as of the date made or reaffirmed.

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<PAGE>

            19.4. Enforceability of Liens. Any Lien or security interest granted
by Borrower to Lender in connection  with the  Obligations is or becomes invalid
or  unenforceable or is not, or ceases to be, a perfected first priority Lien or
security  interest  in  favor of  Lender  encumbering  the  asset to which it is
intended to encumber, and Borrower fails to cause such Lien or security interest
to become a valid,  enforceable,  first and prior lien or security interest in a
manner satisfactory to Lender within ten (10) days after Lender delivers written
notice thereof to Borrower.

            19.5. Involuntary Proceedings.  A case is commenced or a petition is
filed  against  Borrower or Guarantor  under any Debtor  Relief Law, a receiver,
liquidator  or trustee of  Borrower or  Guarantor  or of any  material  asset of
Borrower or  Guarantor  is  appointed  by court order and such order  remains in
effect for more than thirty (30) days;  or if any material  asset of Borrower or
Guarantor  is  sequestered  by court order and such order  remains in effect for
more than thirty (30) days.

            19.6. Proceedings. Borrower or Guarantor voluntarily seeks, consents
to or  acquiesces  in the  benefit of any  provision  of any Debtor  Relief Law,
whether  now or  hereafter  in effect,  consents  to the filing of any  petition
against it under such law, makes an assignment for the benefit of its creditors,
admits in writing its  inability to pay its debts  generally as they become due,
or consents or suffers to the appointment of a receiver,  trustee, liquidator or
conservator for it, him or her or any part of its, his or her assets.

            19.7. Attachment; Judgment; Tax Liens. The issuance, filing, levy or
seizure against the Collateral,  the Project,  the Project Contracts,  Borrower,
Guarantor or any assets of Borrower or  Guarantor,  of one or more  attachments,
injunctions,  executions,  tax  Liens  or  judgments  for the  payment  of money
cumulatively  in excess  of  $100,000  in the  aggregate,  or the  filing of any
mechanics'  or  materialmen's  Lien or claim of Lien which is not  discharged in
full or stayed within thirty (30) days after issuance or filing.

            19.8. Intentionally Omitted.

            19.9. Removal of Collateral.  Borrower conceals, removes, transfers,
conveys, assigns or permits to be concealed, removed,  transferred,  conveyed or
assigned,  any of the  Collateral or any of its assets in violation of the terms
of the Loan  Documents  or with the  intent  to  hinder,  delay or  defraud  its
creditors or any of them including, without limitation, Lender.

            19.10. Intentionally Omitted.

            19.11.  Default  of  Guarantor.   Any  default  under  any  Guaranty
Agreement or the revocation or attempted  revocation or repudiation  thereof, in
whole or part, by Guarantor.

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<PAGE>

            19.12.   Merger   or   Dissolution.    Any   merger,    dissolution,
consolidation,  reorganization,  liquidation  or  restructure  of  Borrower,  in
violation of the terms of this Agreement.

            19.13. Default by Borrower or Guarantor Under Other Agreements.  Any
default by Borrower, Guarantor in the payment or performance of any indebtedness
to Lender or to any  affiliate of Lender  (after  expiration  of any  applicable
grace, notice or cure period).

            19.14. Loss of License. The loss,  revocation or failure to renew or
file for renewal of any registration, approval, license, permit or franchise now
held or hereafter  acquired by Borrower with respect to the Work,  the Mortgaged
Property or sale and financing of Timeshare Interests, or the failure to pay any
fee, which is necessary for the continued  operation of the Mortgaged  Property,
sale and  financing of Timeshare  Interests or  Borrower's  business in the same
manner as it is being conducted at the time of such loss, revocation, failure to
renew or failure to pay and such  loss,  revocation  or failure to renew or file
for renewal shall continue for thirty (30) days.

            19.15.  Suspension of Sales.  The issuance of any stay order,  cease
and desist order, injunction, temporary restraining order or similar judicial or
nonjudicial  sanction limiting or otherwise  materially  adversely affecting the
Work,  any sales  activities  related to  Timeshare  Interests,  other  business
operations in respect of the Mortgaged Property,  or the enforcement of Lender's
remedies and such order or other court  sanction  shall continue for thirty (30)
days.

            19.16.  Violation  of  Negative  Covenants.  Borrower  violates  any
negative  covenant  set forth in Section 14 not cured within the cure period set
forth in Section 19.2.

            19.17.  Deficiency.  In  Lender's  good faith  opinion,  the cost of
completing the applicable Work in accordance with the Specifications exceeds the
total amount set forth in the Phase 2 Cost Certificate,  and Borrower has failed
to make  arrangements  satisfactory  to Lender within ten (10) days after notice
from Lender for the payment of such additional costs.

            19.18.   Abandonment   or  Cessation  of   Construction.   Prior  to
completion,  the Work which is  commenced  shall be abandoned or shall cease for
any  reason  (unless an event of Force  Majeure as defined in Section  11.21 has
occurred) and not be resumed within thirty (30) days thereafter.

            19.19. Lien Against Collateral. Borrower grants any Lien upon any of
the  Collateral  or Borrower  grants any Lien against any part of the  Mortgaged
Property unless otherwise approved by Lender in writing.

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<PAGE>

            19.20.  Unauthorized  Work.  Borrower shall,  without Lender's prior
written  consent,  undertake or contract for Work outside of or beyond the scope
of the Specifications other than pursuant to change orders permitted pursuant to
Section 11.3 of this Agreement.

            19.21. Breach. Any violation or breach shall occur in any agreement,
covenant or restriction affecting title to the Project not cured within the cure
period set forth in Section 19.2.

            19.22. Criminal Proceedings. The indictment of Borrower or Guarantor
under any criminal statute, or the commencement of criminal or civil proceedings
against  Borrower or  Guarantor  pursuant to which  statute or  proceedings  the
penalties or remedies sought or available include  forfeiture of any Collateral,
or Borrower or Guarantor  engages or participates in any "check kiting" activity
regardless of whether a criminal investigation has been commenced.

            19.23. Intentionally Omitted.

            19.24. Intentionally Omitted.

            19.25. Intentionally Omitted.

            19.26. Intentionally Omitted.

            19.27. Intentionally Omitted.

            19.28. Fraud. If Borrower or Guarantor takes or is in the process of
taking any action  which  Lender shall deem to be intended to (i) defraud any of
their creditors,  including, without limitation, Lender, (ii) convert all or any
portion of the Collateral,  or (iii)  intentionally  violate or circumvent Legal
Requirements material to their respective businesses.

            19.29. Intentionally Omitted.

            19.30.  Insolvency.  Borrower  or  Guarantor  becomes  insolvent  or
otherwise  generally  unable to pay its respective debts as and when they become
due or payable.

            19.31.  Encroachments  and Permits.  If all or any portion of any of
the construction of improvements for Phase 2 encroach  (without  consent) in any
material respects not indicated on the Survey, upon any street or road, setback,
or easement or upon any adjoining property,  or violate in any material respects
any ordinance, regulation, rule, or direction of any federal or state agency, or
of any governmental or quasi-governmental authority, or any zoning setback line.

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<PAGE>

            19.32.  Material  Adverse Change.  A material  adverse change in the
value of the Collateral or the Mortgaged Property or in the financial  condition
of Borrower or Guarantor has occurred as determined by Lender in its  reasonable
discretion.

            19.33.  Cessation of Business.  Any  cessation of a material part of
the  operation  of the  Mortgaged  Property  and if such  business  shall not be
resumed within ten (10) days after such  cessation,  unless the cessation is due
to a Force Majeure event.

      20. Termination of Obligation to Advance/Remedies.

            20.1.  Termination  of  Obligation  to  Advance  Should  an Event of
Default occur and be continuing, Lender may, with or without proceeding with any
sale or  foreclosure or demanding  payment or  performance  of the  Obligations,
without notice,  terminate Lender's further  performance under this Agreement or
any other  agreement  or  agreements  between  Lender and  Borrower,  including,
without limitation, any commitment of Lender to lend under this Agreement in its
entirety, or any portion of any such commitment, to the extent Lender shall deem
appropriate,  without  notice and without  further  liability or  obligation  by
Lender.

            20.2. Remedies.  At the option of the Lender, upon the occurrence of
an Event of Default  or at any time  while an Event of  Default  is  continuing,
Lender:

                  (a)  Acceleration.  Without  demand or  notice  of any  nature
whatsoever,  declare the Obligations,  or any part thereof,  immediately due and
payable, whereupon the same shall be due and payable.

                  (b) Judgment. Reduce Lender's claim to judgment,  foreclose or
otherwise  enforce  Lender's  security  interest  in  all  or  any  part  of the
Collateral  by any available  judicial or other  procedure  under law.  Lender's
right to sue and recover a judgment either before,  after or during the pendency
of any proceeding for the enforcement of any Lien in favor of Lender,  including
without limitation the Lender's Mortgage and the right of Lender to recover such
judgment  shall not be affected by any taking,  possession or  foreclosure  sale
hereunder  or by the  exercise  of any  other  right,  power or  remedy  for the
enforcement  of the  terms of any Lien in favor  of  Lender,  including  without
limitation the Lender's Mortgage, or the foreclosure of the Lien thereof.

                  (c) Termination of Obligation to Grant Partial Release. Lender
may in its sole discretion  stop granting any partial  releases from the Lien of
Lender's Mortgage.

                  (d) Foreclosure. Whether or not Lender takes possession of the
Collateral,  Lender may proceed to foreclose  the Lender's  Mortgage and to sell
the property  encumbered by the Lender's Mortgage in its entirety or in separate

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<PAGE>

parcels,  under  the  judgment  or  decree  of a court or  courts  of  competent
jurisdiction and to pursue any other remedy available to it, all as Lender shall
deem  appropriate.  Upon  commencement  of suit or  foreclosure  of the Lender's
Mortgage,  obligations, if not previously accelerated and declared due, shall be
immediately  due and payable.  Upon any  foreclosure  sale  pursuant to judicial
proceedings,  Lender may bid for and purchase all or any portion of the property
encumbered by the Lender's Mortgage and, upon compliance with the terms of sale,
may hold, retain and possess and dispose of such property.

      In case of a  foreclosure  sale  under the  Lender's  Mortgage  and of the
application  of the proceeds of sale to the payment of the  Obligations,  Lender
shall be entitled  to enforce  payment of and to receive  all  Obligations  then
remaining due and unpaid,  and Lender shall be entitled to recover  judgment for
any portion of the Obligations remaining unpaid, with interest.

      Borrower agrees,  to the full extent that it may lawfully so agrees,  that
no recovery  of any such  judgment  by Lender and no  attachment  or levy of any
execution  upon any such judgment  upon any of the  Collateral or upon any other
property shall in any manner or to any extent affect the lien of the Mortgage or
any part thereof or any lien,  rights,  powers or remedies of Lender  hereunder,
and such lien, rights, powers and remedies shall continue unimpaired.

                  (e)  Lender's  Right  to Take  Possession  Operate  and  Apply
Income.

                       (i)  Upon   Lender's   demand, Borrower  shall  forthwith
surrender to Lender the actual possession of the Mortgaged  Property and, to the
extent  permitted  by law,  Lender  may  enter  and take  possession  of all the
Mortgaged  Property and may exclude Borrower and its agents and employees wholly
therefrom and may have joint access with Borrower to  Borrower's  books,  papers
and accounts  related to the Project.  If Borrower fails to surrender or deliver
all or any portion of the Mortgaged  Property to Lender upon demand,  Lender may
obtain a  judgment  or  decree  conferring  on  Lender  the  right to  immediate
possession or requiring Borrower to deliver immediate  possession of all or part
of the Mortgaged Property to Lender, and Borrower hereby  specifically  consents
to the entry of such a judgment or decree.

                       (ii) Upon   every   such   entering   upon  or  taking of
possession,  Lender  may hold,  store,  use,  operate,  manage and  control  the
Mortgaged  Property and conduct  Borrower's  business  thereon and, from time to
time do any of the  following  things  as  Lender  may  from  time to time  deem
necessary, appropriate or desirable:

                            (A)   make  all   maintenance,   repairs,  renewals,
replacements,  additions and improvements  necessary and proper to the Mortgaged

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<PAGE>

Property and purchase or otherwise acquire additional  fixtures,  personalty and
other property;

                            (B)  insure,   manage  and  operate  the   Mortgaged
Property and exercise all of the rights and powers of Borrower (in Lender's name
or otherwise)  with respect to the  insurance,  management  and operation of the
Mortgaged Property;

                            (C) enter into any and all  agreements  with respect
to the exercise by others of any of the powers herein granted to Lender;

                            (D)  perform  or cause to be  performed  any and all
work and labor  necessary  to  complete  the Work  which has been  commenced  in
accordance with the Specifications; and

                            (E) disburse  that portion of the Loan  proceeds not
previously  disbursed  (including  any  retainage)  to the extent  necessary  to
complete   the  Work  which  has  been   commenced   in   accordance   with  the
Specifications,  and if such completion requires a larger sum than the remaining
undisbursed  portion of the Loan,  disburse such additional  funds, all of which
funds so disbursed by Lender shall be deemed to have been  disbursed to Borrower
and shall be  secured  by the  Collateral.  For this  purpose,  Borrower  hereby
constitutes and appoints Lender its true and lawful  attorney-in-fact  with full
power of  substitution  to  complete  the  Work in  Borrower's  name and  hereby
empowers  Lender  as said  attorney-in-fact  to take all  actions  necessary  in
connection therewith, including but not limited to the following: (i) to use any
funds of  Borrower,  including  any balance  which may be held in escrow and any
funds which may remain unadvanced  hereunder,  for the purpose of completing the
Work in the manner called for by the Specifications; (ii) to make such additions
and changes and  corrections in the  Specifications  which shall be necessary or
desirable to complete the Work in substantially  the manner  contemplated by the
applicable  Specifications;  (iii) to employ such  contractors,  subcontractors,
agents,  architects,  engineers  and  inspectors  as shall be required  for said
purposes;  (iv) to pay,  settle or  compromise  all existing or future bills and
claims which are or may be liens against the Mortgaged  Property or which may be
necessary or desirable for the  completion of the Work or the clearance of title
to the Mortgaged  Property;  (v) to execute all applications and certificates in
Borrower's name which may be required by any construction  contract; and (vi) to
do any and every act with respect to the Mortgaged  Property  which Borrower may
do in its own  behalf.  Such  power of  attorney  shall be  deemed to be a power
coupled  with an interest  which cannot be revoked by death or  otherwise.  Said
attorney-in-fact  shall also have power to  prosecute  and defend all actions or
proceedings  in connection  with the Mortgaged  Property and to take such action
and require such  performance as it deems  necessary.  In accordance  therewith,
Borrower  hereby  assigns  and  quitclaims  to  Lender  all sums to be  advanced
hereunder,  including retainage and any sums in

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escrow, conditioned upon the use of said sums, if any, for the completion of the
Work.

                       (iii) Lender may  collect and   receive  all the  income,
revenues, rents, issues and profits of the Project,  including those past due as
well as those  accruing  thereafter.  Lender  shall apply such sums  received by
Lender,  first to the  payment of accrued  interest  and then to the  payment of
principal and all other sums or  indebtedness  that may be due hereunder,  after
deducting therefrom:

                            (A) All  expenses of taking,  holding,  managing and
operating the Mortgaged Property (including compensation for the services of all
persons employed for such purposes);

                            (B)  The  cost  of all  such  maintenance,  repairs,
renewals,  replacements,  additions,  betterments,  improvements,  purchases and
acquisitions;

                            (C) The cost of insurance;

                            (D) Such taxes,  assessments  and other charges,  as
Lender may determine to pay;

                            (E) Other  proper  charges  upon the  Project or any
part thereof; and

                            (F)  The  reasonable   compensation,   expenses  and
disbursements of the attorneys and agents of Lender,  including  attorneys' fees
and costs for any appeal.

                       (iv) If an Event of Default giving rise to pursuit of the
foregoing  remedy  shall have been cured,  Lender may, at its option,  surrender
possession of the  Mortgaged  Property to Borrower,  its  successors or assigns;
provided however, that Lender's right to take possession and to pursue any other
remedies  hereunder  or  under  any of the  Loan  Documents  shall  exist if any
subsequent Event of Default shall occur.

                  (f) Sale of Collateral.  After notification,  if any, provided
for in Section 20.3, sell or otherwise  dispose of, at the office of Lender,  or
elsewhere, as chosen by Lender, all or any part of the Collateral,  and any such
sale or other  disposition may be as a unit or in parcels,  by public or private
proceedings,  and by way of one or more contracts (it being agreed that the sale
of any part of the  Collateral  shall not exhaust  Lender's  power of sale,  but
sales may be made from time to time until all of the Collateral has been sold or
until the Obligations,  have been paid in full and fully performed),  and at any
such sale it shall not be necessary to exhibit the  Collateral.  Borrower hereby
acknowledges  and agrees that a private sale or sales of the  Collateral,  after
notification  as provided for in Section 20.3,  shall

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<PAGE>

constitute a commercially  reasonable  disposition of the Collateral sold at any
such sale or sales, and otherwise, commercially reasonable action on the part of
Lender.

                  (g) Retention of  Collateral/Purchase  of  Collateral.  At its
discretion, retain such portion of the Collateral as shall aggregate in value to
an  amount  equal  to  the  outstanding  Obligations,  in  satisfaction  of  the
Obligations,  whenever  the  circumstances  are such that Lender is entitled and
elects to do so under  applicable law. Lender may also buy the Collateral at any
public or private sale.

                  (h) Receiver.  As a matter of strict right and without  regard
to the  value or  occupancy  of the  Mortgaged  Property,  apply by  appropriate
procedures  for the  appointment  of a  receiver  who will  enter  upon and take
possession of the Mortgaged  Property,  collect the rents and profits  therefrom
and apply the same as the court may  direct.  The  receiver  shall  have all the
rights and powers  permitted under the laws of the State. All costs and expenses
(including  receiver's  fees,  reasonable  attorneys  fees and costs,  including
reasonable  attorneys'  fees and costs  incurred as a result of any appeal,  and
agents  compensation)  incurred in connection with the appointment of a receiver
shall be secured by the  Collateral.  The right to enter and take  possession of
the Mortgaged Property, to manage and operate the same and to collect the rents,
issues and  profits  thereof  (whether  by a  receiver  or  otherwise)  shall be
cumulative to any other right or remedy  hereunder or afforded by law and may be
exercised by Lender concurrently therewith or independently thereof Lender shall
be liable to account only for such rents, issues and profit actually received by
Lender.  Notwithstanding  the  appointment  of any  receiver,  trustee  or other
custodian, Lender shall be entitled, as pledgee, to the possession or control of
any cash or other  instruments,  at the time held by or payable  or  deliverable
under the terms of this Agreement or any other Loan Document to Lender. Borrower
hereby  consents to any such  appointment.  Lender may also apply by appropriate
judicial  proceedings for  appointment of a receiver for the Collateral,  or any
part thereof, and Borrower hereby consents to any such appointment.

                  (i) Exercise of Other Rights. Lender shall have all the rights
and  remedies of a secured  party  under the Code and other legal and  equitable
rights to which it may be entitled, and may exercise any and all other rights or
remedies  afforded by the Loan  Documents as Lender shall deem  appropriate,  at
law, in equity or otherwise,  including,  but not limited to, the right to bring
suit or other  proceeding,  either for specific  performance  of any covenant or
condition contained in the Loan Documents or in aid of the exercise of any right
or remedy  granted to Lender in the Loan  Documents.  Lender shall also have the
right to require  Borrower to  assemble  any of the  Collateral  not in Lender's
possession, at Borrower's expense, and make it available to Lender at a place to
be  determined by Lender which is  reasonably  convenient  to both parties,  and
Lender  shall  have  the  right  to  take  immediate  possession  of  all of the
Collateral,  and may enter the  Mortgaged

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Property or any of the premises of Borrower or wherever the Collateral  shall be
located,  with or without process of law wherever the Collateral may be, and, to
the extent such  premises are not the property of Lender,  to keep and store the
same on said premises  until sold (and if said premises shall be the property of
Borrower,  Borrower agrees not to charge Lender for use and occupancy,  rent, or
storage of the Collateral,  for a period of at least ninety (90) days after sale
or disposition of the Collateral).

            20.3.  Notice of Sale of Personal  Property  Collateral.  Reasonable
notification  of  time  and  place  of any  public  sale  of the  Collateral  or
reasonable  notification  of the time  after  which  any  private  sale or other
intended  disposition  of the Collateral is to be made shall be sent to Borrower
and to any other person  entitled  under the Code to notice;  provided  however,
that if the  Collateral  threatens to decline  speedily in value or is of a type
customarily sold on a recognized market, Lender may sell or otherwise dispose of
the Collateral without notification,  advertisement or other notice of any kind.
It is agreed that notice sent not less than ten (10)  calendar days prior to the
taking of the action to which such notice relates is reasonable notification and
notice for the purposes of this Section 20.3. Lender shall have the right to bid
at any public or private sale on its own behalf.  Out of money  arising from any
such  sale,  Lender  shall  retain  an amount  equal to all  costs and  charges,
including  attorneys'  fees for advice,  counsel or other legal  services or for
pursuing, reclaiming, seeking to reclaim, taking, keeping, removing, storing and
advertising such Collateral for sale, selling same and any and all other charges
and expenses in connection  therewith and in satisfying any prior Liens thereon.
Any  balance  shall  be  applied  upon  the  Obligations,  and in the  event  of
deficiency, Borrower shall remain liable to Lender. In the event of any surplus,
such  surplus  shall be paid to  Borrower  or to such  other  Persons  as may be
legally entitled to such surplus. If, by reason of any suit or proceeding of any
kind, nature or description against Borrower,  or by Borrower or any other party
against Lender,  which in Lender's sole discretion makes it advisable for Lender
to seek counsel for the protection and preservation of its security interest, or
to defend its own  interest,  such expenses and counsel fees shall be allowed to
Lender and the same shall be made a further charge and Lien upon the Collateral.

            In view of the fact  that  federal  and  state  securities  laws may
impose  certain  restrictions  on the  methods  by  which a sale  of  Collateral
comprised  of  securities  may be effected  after an Event of Default,  Borrower
agrees that upon the occurrence or existence of an Event of Default, Lender may,
from time to time,  attempt to sell all or any part of such  Collateral by means
of a private  placement to the extent  permitted by law  restricting the bidding
and  prospective  purchasers to those who will represent and agree that they are
purchasing for investment only and not for, or with a view to, distribution.  In
so doing,  Lender may solicit offers to buy such  Collateral,  or any part of it
for cash, from a limited number of investors deemed by Lender, in its reasonable
judgment,  to be  responsible  parties who might be interested in purchasing the
Collateral,  and if Lender  solicits such offers from

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not less  than two (2) such  investors,  then the  acceptance  by  Lender of the
highest offer obtained therefrom shall be deemed to be a commercially reasonable
method of disposition of such Collateral.

            20.4. Application of Collateral; Termination of Agreements. Upon the
occurrence  of any Event of Default  until  cured (if  applicable)  and the cure
accepted by Lender , Lender may,  with or without  proceeding  with such sale or
foreclosure  or demanding  payment or performance  of the  Obligations,  without
notice, terminate Lender's further performance under this Agreement or any other
agreement or agreements  between Lender and Borrower,  without further liability
or  obligation  by  Lender,  and may also,  at any time,  appropriate  and apply
against any Obligations  any and all Collateral in its  possession,  any and all
balances, credits, deposits,  accounts,  reserves,  indebtedness or other moneys
due or owing to Borrower held by Lender  hereunder or under any other  financing
agreement or otherwise,  whether accrued or not. Neither such  termination,  nor
the  termination  of this  Agreement  by lapse of time,  the giving of notice or
otherwise,  shall absolve, release or otherwise affect the liability of Borrower
in  respect  of  transactions  prior to such  termination,  or affect any of the
Liens,  security  interests,  rights,  powers and  remedies of Lender,  but they
shall, in all events, continue until all of the Obligations are satisfied.

            20.5. Suits to Protect the Project.  Lender shall have power to: (a)
institute and maintain such suits and  proceedings  as it may deem  expedient to
prevent  any  impairment  of the  Mortgaged  Property  by any acts  which may be
unlawful or which  violate  this  Agreement  or any of the Loan  Documents;  (b)
preserve or protect  Lender's  interest  in the  Mortgaged  Property  and in the
income,  revenues,  rents and profits  arising  therefrom;  and (c) restrain the
enforcement of or compliance with any legislation or other government enactment,
rule  or  order  that  may be  unconstitutional  or  otherwise  invalid,  if the
enforcement  of or compliance  with such  enactment,  rule or order would impair
Lender's security.  All payments made or costs or expenses incurred by Lender in
connection with this paragraph,  including reasonable attorneys' fees and costs,
whether or not suit is filed and, if filed, for all appeals, shall be secured by
the Collateral and shall be immediately  repaid by Borrower to Lender on demand,
with interest  thereon from the date incurred  until the date repaid by Borrower
at the Default Rate for the Loan.

            20.6.  Rights of Lender  Regarding  Collateral.  In  addition to all
other rights possessed by Lender,  Lender, at its option,  may from time to time
after there shall have  occurred an Event of Default,  and so long as such Event
of  Default  remains  uncured,  at its sole  discretion,  take any or all of the
following actions:

                  (a) Transfer all or any part of the  Collateral  into the name
of Lender or its nominee;

                  (b) Take control of any proceeds of any of the Collateral; and

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                  (c) Extend or renew the Loan and grant  releases,  compromises
or  indulgences  with  respect to the  Obligations,  any  portion  thereof,  any
extension or renewal thereof, or any security therefor, to any obligor hereunder
or thereunder.

            20.7.  Waiver  of  Appraisement   Valuation,   Stay,  Extension  and
Redemption  Laws.  To the extent  permitted  by law,  Borrower  agrees  upon the
occurrence  of an Event of Default,  neither  Borrower  nor anyone  claiming by,
through or under Borrower,  shall set up, claim or seek to take advantage of any
appraisement,  valuation, stay, extension or redemption laws now or hereafter in
force,  in order to prevent or hinder the  enforcement  or foreclosure of any of
the Liens in favor of Lender,  including without limitation the Mortgage, or the
final and absolute sale of the property  encumbered by the Mortgage or the final
and  absolute  possession  of the  property  encumbered  by the  Mortgage by the
purchasers in foreclosure,  and Borrower,  for itself and for all who may at any
time claim  through or under it,  hereby  waives to the full  extent that it may
lawfully  do so the  benefit  of all such laws and any and all right to have the
assets  comprising  the property  encumbered by the Mortgage  marshaled upon any
foreclosure and Borrower agrees that the property encumbered by the Mortgage may
be sold in its entirety.

            Any  money  collected  by  Lender or  received  by Lender  following
pursuit by Lender of any  remedy  hereunder  or under any of the Loan  Documents
shall be  applied  to the  payment  of the  compensation,  expenses,  costs  and
disbursements  of the agents and  attorneys  of  Lender,  to the  payment of the
amounts of accrued  interest and  principal  and any other amount due and unpaid
under the Loan,  and to the payment of all other  Obligations,  in such order as
Lender may determine.

            20.8. Delegation of Duties and Rights. Lender may execute any of its
duties and/or exercise any of its rights or remedies under the Loan Documents by
or  through  its  officers,  directors,  employees,  attorneys,  agents or other
representatives.

            20.9.  Lender  Not in  Control.  None  of  the  covenants  or  other
provisions contained in this Agreement or in any Loan Document shall give Lender
the right or power to exercise  control over the affairs  and/or  management  of
Borrower or Guarantor or either of their Affiliates.

            20.10.  Waivers.  The acceptance by Lender at any time and from time
to time of  partial  payments  of the  Obligations  shall  not be deemed to be a
waiver of any Event of Default then  existing.  No waiver by Lender of any Event
of Default  shall be deemed to be a waiver of any other or  subsequent  Event of
Default.  No delay or omission by either party in exercising any right or remedy
under the Loan Documents  shall impair such right or remedy or be construed as a
waiver  thereof  or an  acquiescence  therein,  nor shall any  single or partial
exercise of any such right or remedy preclude other or further exercise thereof,
or the  exercise  of any other  right or  remedy  under  the Loan  Documents  or
otherwise.  Further, except as otherwise

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<PAGE>

expressly provided in this Agreement or by applicable law, Borrower and each and
every  surety,  endorser,  guarantor  and other party  liable for the payment or
performance of all or any portion of the Obligations,  severally waive notice of
the  occurrence  of any Event of Default,  presentment  and demand for  payment,
protest, and notice of protest, notice of intention to accelerate,  acceleration
and  nonpayment,  and agree that their  liability  shall not be  affected by any
renewal  or  extension  in the time of  payment  of the  Obligations,  or by any
release  or  change  in any  security  for the  payment  or  performance  of the
Obligations,  regardless of the number of such renewals, extensions, releases or
changes.

      If Lender:  (a) grants forbearance or an extension of time for the payment
of any sums secured by the  Collateral;  (b) takes other or additional  security
for the payment of the  Obligations;  (c) waives or does not  exercise any right
granted in this  Agreement or any Loan  Documents;  (d) releases any part of the
Collateral  from the Lien in favor of Lender  or  otherwise  changes  any of the
terms of this Agreement or any Loan Documents; (e) consents to the filing of any
map, plat or replat of the Mortgaged  Property;  (f) consents to the granting of
any  easement  on the  Mortgaged  Property;  or (g)  makes  or  consents  to any
agreement  subordinating  Lender's Lien against any of the Collateral,  any such
act or omission by Lender shall not release, discharge, modify, change or affect
Borrower's  original liability under this Agreement or any of the Loan Documents
or  otherwise,  or  the  original  liability  of  any  maker,  general  partner,
co-signer,  endorser,  surety or  guarantor  nor shall any such act or  omission
preclude  Lender from exercising any right,  power or privilege  granted in this
Agreement  or  any  Loan  Document  in the  event  of any  other  concurrent  or
subsequent default, nor (except as otherwise expressly provided in an instrument
or  instruments  executed  by Lender)  shall  Lender's  Lien  against any of the
Collateral be altered thereby.

      Upon the sale or transfer by  operation  of law or otherwise of all or any
part of the  Collateral,  Lender,  without  further  notice,  is authorized  and
empowered to deal with any such transferee as fully and to the same extent as it
might deal with Borrower,  without in any way waiving,  releasing or discharging
any of Borrower's liabilities or obligations hereunder.

      BORROWER HEREBY WAIVES ALL NOTICES (EXCEPT AS OTHERWISE EXPRESSLY PROVIDED
HEREUNDER) WITH RESPECT TO ANY LOSSES,  DAMAGES,  LIABILITIES,  SUITS, COSTS AND
EXPENSES,  AND ALL OTHER DEMANDS WHATSOEVER HEREBY INDEMNIFIED,  AND AGREES THAT
ITS OBLIGATIONS UNDER THIS AGREEMENT SHALL NOT BE AFFECTED BY ANY CIRCUMSTANCES,
WHETHER OR NOT  REFERRED TO ABOVE,  WHICH MIGHT  OTHERWISE  CONSTITUTE  LEGAL OR
EQUITABLE DISCHARGES OF ITS OBLIGATIONS HEREUNDER.

      IF A COURT OF COMPETENT  JURISDICTION  SHOULD  DETERMINE  THAT BORROWER IS
ENTITLED TO RECOVER DAMAGES FROM LENDER

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<PAGE>

FOR ANY REASON OR UPON ANY CAUSE, CLAIM OR COUNTERCLAIM,  IN CONNECTION WITH THE
LOAN OR THE TRANSACTIONS PROVIDED FOR OR CONTEMPLATED PURSUANT TO THIS AGREEMENT
OR THE OTHER  LOAN  DOCUMENTS,  BORROWER  STIPULATES  AND  AGREES  THAT ANY SUCH
DAMAGES  OR  AWARDS  SHALL  NOT  INCLUDE  CONSEQUENTIAL,  PUNITIVE  OR ANY OTHER
DAMAGES.  IN THE EVENT THE  FOREGOING  PROVISION  IS NOT ENFORCED BY THE COURTS,
THEN  BORROWER  AGREES  THAT  BORROWER'S  SOLE  REMEDY FOR ANY  CAUSE,  CLAIM OR
COUNTERCLAIM WILL BE TO RECOVER COMPENSATORY DAMAGES IN CONNECTION WITH THE LOAN
AND SHALL NOT INCLUDE PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES.

            20.11.  Cumulative  Rights.  All rights and  remedies  available  to
Lender under the Loan  Documents  shall be  cumulative of and in addition to all
other rights and remedies granted to Lender under any of the Loan Documents,  at
law or in equity,  whether or not the Loan is due and payable and whether or not
Lender  shall  have  instituted  any suit for  collection  or  other  action  in
connection with the Loan Documents.

            20.12.  Expenditures by Lender. Any sums expended by or on behalf of
Lender pursuant to the exercise of any right or remedy provided herein,  and all
expenses  payable by Borrower under any provision of this Agreement shall become
part of the  Obligations,  shall be paid by  Borrower  to Lender upon demand and
shall bear  interest  at the  Default  Rate for the Loan,  from the date of such
expenditure until the date repaid.

            20.13. Diminution in Value of Collateral.  Lender shall not have any
liability or  responsibility  whatsoever  for any diminution or loss in value of
any of the  Collateral,  excluding  Lender's  gross  negligence  or  intentional
wrongful acts.

            20.14.  Discontinuance of Proceedings. If Lender proceeds to enforce
any right or remedy under the Loan Documents by foreclosure,  entry or otherwise
and such proceedings shall have been discontinued or abandoned for any reason or
shall have been determined  adversely to Lender,  then Borrower and Lender shall
be restored  to their  former  positions  and rights  hereunder  and all rights,
powers and remedies of Lender shall continue as if no such proceeding occurred.

      21. Partial  Releases;  Other  Releases.  At Borrower's  cost and expense,
Lender  agrees  to  execute,  from time to time,  releases  from the Lien of the
Mortgage,  in form and substance acceptable to Lender and Borrower, of Timeshare
Interests and related  Collateral in connection  with the bona fide sale of such
Timeshare  Interests  as permitted  hereunder  ("Released  Property"),  upon the
written request of Borrower, provided that:

                  (a) No Event of Default or Default shall exist;

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<PAGE>

                  (b) For each Timeshare Interest to be released,  Borrower pays
to Lender, the required Release Payments;

                  (c) All costs incident to the preparation and recording of the
release documents shall be paid by Borrower;

                  (d) Borrower shall execute such documents as Lender reasonably
requests to evidence  satisfaction  of all  conditions  of the release set forth
herein and shall provide  Lender with copies of all  documents  and  information
reasonably  requested by Lender  regarding the sale of each Timeshare  Interest;
and

                  (e)  Borrower's  escrow  agent (if any) and Lender  shall have
agreed upon mutually acceptable escrow instructions setting forth the logistical
arrangements  for the release of each  Timeshare  Interest at  settlement of the
sale thereof.

      In addition,  at  Borrower's  cost and expense,  Lender agrees to execute,
from time to time, releases from the Lien of the Lender's Mortgage,  in form and
content  (consistent with Schedule 21 attached  hereto),  of certain  furniture,
fixtures and equipment being conveyed by Borrower to the Association as provided
for in the  Timeshare  Declaration,  Collateral  subject  to any  UCC  financing
statement  which is to be partially  released or of such other items of personal
or real  property as may be  requested by the  Division in  connection  with the
approval of Phase 2 of the Project.

      At such time as the Obligations  have been paid in full, this Agreement is
terminated  and of no further force or effect,  Lender will, at Borrower's  cost
and  expense,  execute  and  deliver  to  Borrower  such  releases,  termination
statements  and such other  agreements  as Borrower  may  reasonably  request to
evidence the release and termination of any and all Liens granted by Borrower in
favor of Lender against the Collateral.

      22. Certain Rights of Lender.

            22.1. Protection of Collateral. Lender may at any time and from time
to time take such actions as Lender deems  necessary or  appropriate  to protect
Lender's Liens and security interests in and to preserve the Collateral,  and to
establish,  maintain  and protect  the  enforceability  of Lender's  rights with
respect  thereto,  all at the expense of Borrower.  Borrower agrees to cooperate
fully with all of  Lender's  efforts to preserve  the  Collateral  and  Lender's
Liens,  security interests and rights and will take such actions to preserve the
Collateral  and  Lender's  Liens,  security  interests  and rights as Lender may
direct,  including,  without limitation, by promptly paying upon Lender's demand
therefor,  all documentary  stamp taxes or other taxes that may be or may become
due in respect of any of the Collateral.  All of Lender's expenses of preserving
the Collateral and its liens and security  interests and rights therein shall be
added to the Obligations.

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<PAGE>

            22.2.  Performance  by Lender.  If  Borrower  fails to  perform  any
agreement  contained herein not cured within any applicable cure period,  Lender
may  itself  perform,  or cause the  performance  of,  such  agreement,  and the
expenses of Lender incurred in connection therewith shall be payable by Borrower
under Section 22.5 below. In no event, however, shall Lender have any obligation
or duties whatsoever to perform any covenant or agreement of Borrower  contained
herein or in any of the Loan Documents,  Project Documents or Project Contracts,
and any such  performance by Lender shall be wholly  discretionary  with Lender.
The  performance  by Lender,  of any  agreement  or  covenant of Borrower on any
occasion  shall not give rise to any duty on the part of Lender to  perform  any
such  agreements or covenants on any other occasion or at any time. In addition,
Borrower   acknowledges  that  Lender  shall  not  at  any  time  or  under  any
circumstances  whatsoever  have any duty to  Borrower  or to any third  party to
exercise any of Lender's rights or remedies hereunder.

            22.3.  No  Liability  of  Lender.  Neither  the  acceptance  of this
Agreement by Lender,  nor the exercise of any rights hereunder by Lender,  shall
be  construed  in any  way  as an  assumption  by  Lender  of  any  obligations,
responsibilities  or duties of Borrower arising in connection with the Mortgaged
Property or under the Loan  Documents or  Condominium  Act or Timeshare  Act, or
under any of the Project Contracts,  or in connection with any other business of
Borrower, or the Collateral,  or otherwise bind Lender to the performance of any
obligations with respect to the Mortgaged  Property or the Collateral;  it being
expressly  understood that Lender shall not be obligated to perform,  observe or
discharge any  obligation,  responsibility,  duty, or liability of Borrower with
respect to the Mortgaged Property or any of the Collateral,  or under any of the
Loan  Documents,  the  Condominium  Act or the Timeshare Act or under any of the
Project Contracts,  including, but not limited to, appearing in or defending any
action, expending any money or incurring any expense in connection therewith.

            22.4.  Right to Defend  Action  Affecting  Security.  Lender may, at
Borrower's  expense,  appear in and defend any action or proceeding at law or in
equity  which  Lender  in good  faith  believes  may  affect  the  value  of the
Collateral,  the Work and of the Mortgaged Property the Liens granted under this
Agreement.

            22.5.  Indemnities,  Loan Costs and Expenses. All indemnities,  Loan
Costs and other  expenses  payable  by  Borrower  under  any  provision  of this
Agreement  shall be part of the  Obligations  of  Borrower  and shall be paid by
Borrower to Lender,  and shall bear interest at the primary interest rate as set
forth in Section 4.1 hereof or the Default Rate as applicable  for the Loan from
the date of demand until repaid by Borrower.

            22.6.  Lender's  Right of  Set-Off.  Lender  shall have the right to
set-off any Collateral against any Obligations then due and unpaid by Borrower.

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<PAGE>

            22.7.  No  Waiver.  No  failure  or delay on the part of  Lender  in
exercising  any  right,  remedy or power  under this  Agreement  or in giving or
insisting  upon strict  performance  by Borrower  hereunder or in giving  notice
hereunder shall operate as a waiver of the same or any other power or right, and
no single or partial  exercise  of any such power or right  shall  preclude  any
other or further  exercise  thereof or the  exercise  of any other such power or
right. Lender, notwithstanding any such failure, shall have the right thereafter
to insist  upon the strict  performance  by Borrower of any and all of the terms
and provisions of this Agreement to be performed by Borrower. The collection and
application of proceeds,  the entering and taking  possession of the Collateral,
and the  exercise of the rights of Lender  contained in the Loan  Documents  and
this  Agreement  shall not cure or waive any  default,  or affect  any notice of
default,  or  invalidate  any acts done  pursuant to such  notice.  No waiver by
Lender of any breach or default of or by any party  hereunder shall be deemed to
alter  or  affect  Lender's  rights  hereunder  with  respect  to any  prior  or
subsequent default.

            22.8. Right of Lender to Extend Time of Payment, Substitute, Release
Security, Etc. Without affecting the liability of any Person or entity including
without limitation, any Purchasers, for the payment of any of the Obligations or
without affecting or impairing Lender's Lien on the Collateral, or the remainder
thereof, as security for the Obligations,  Lender may from time to time, without
notice:  (a)  release  any  Person  liable  for the  payment  of any part of the
Obligations;  (b) extend the time or otherwise alter the terms of payment of any
part of the Obligations;  (c) accept additional  security for the Obligations of
any kind,  including  deeds of trust or mortgages and security  agreements;  (d)
alter,  substitute or release any property securing any part of the Obligations;
(e)  realize  upon any  Collateral  for the payment of all or any portion of the
Obligations  in such  order and  manner  as it may deem fit;  or (f) join in any
subordination or other agreement  affecting this Agreement or the Lien or charge
thereof.

            22.9.  Assignment of Lender's Interest.  Lender shall have the right
to assign, participate or transfer the Loan and all or any portion of its rights
in or pursuant to this Agreement or any of the Loan Documents, holder or holders
of such rights or interests  shall be entitled to the benefits of this Agreement
and the Loan  Documents.  The consent of Borrower  shall not be required for any
such  assignment,  participation  or transfer  and failure to give notice of any
assignment,   participation  or  transfer  shall  not  affect  the  validity  or
enforceability  of this Agreement,  any Loan Document,  or subject Lender to any
liability.  Borrower consents to the dissemination of information  regarding the
Obligations,  the Loan, Borrower,  Borrower's business,  and all matters related
hereto in connection  with any assignment,  participation  or sale. In the event
that Lender  participates or sells its interest in the Loan to any other Person,
which in Lender's  reasonable  judgment  has the  financial  capability  to fund
Advances  (or its  share  thereof  in the event of a  participation)  hereunder,
Lender shall have no further  responsibilities or liabilities in connection with
the sold or participated  portion of the Loan,  including without

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<PAGE>

limitation the obligation to fund Advances  related to such sold or participated
portions,   after  the  date  of  such  sale  or  participation.   All  of  such
responsibilities  and liabilities  after the date of such sale or  participation
shall be those of the participant or the purchaser of Lender's interest.

            22.10.   Power  of  Attorney.   Borrower  does  hereby   irrevocably
constitute  and  appoint  Lender  as  Borrower's   true  and  lawful  agent  and
attorney-in-fact,   with  full  power  of  substitution,  for  Borrower  and  in
Borrower's  name,  place and stead, or otherwise,  to: (a) endorse any checks or
drafts  payable to Borrower in the name of Borrower and in favor of Lender;  (b)
to demand and receive from time to time any and all  property,  rights,  titles,
interests and liens hereby sold, assigned and transferred, or intended so to be,
and to give receipts for same;  (c) from time to time to institute and prosecute
in Lender's own name any and all  proceedings  at law, in equity,  or otherwise,
that Lender may deem  proper in order to  collect,  assert or enforce any claim,
right or title, of any kind, in and to the property,  rights, titles,  interests
and liens hereby  sold,  assigned or  transferred,  or intended so to be, and to
defend and  compromise  any and all actions,  suits or proceedings in respect of
any of the said property, rights, titles, interests and Liens; (d) upon an Event
of Default to change any post office mailing  address for purpose of payments to
be remitted directly to Lender with respect to the Collateral; and (e) generally
to do all and any such acts and things in relation to the  Collateral  as Lender
shall  in  good  faith  deem  advisable.   Borrower  hereby  declares  that  the
appointment  made and the powers  granted  pursuant  to this  Section  22.10 are
coupled  with an interest  and are and shall be  irrevocable  by Borrower in any
manner, or for any reason, unless and until a release of the same is executed by
Lender and duly recorded in the appropriate office for recordation.

            22.11.  Relief from  Automatic  Stay,  Etc.  To the  fullest  extent
permitted  by law,  in the event  Borrower  shall make  application  for or seek
relief or protection under the federal  bankruptcy code  ("Bankruptcy  Code") or
other Debtor Relief Laws, or in the event that any involuntary petition is filed
against Borrower under such Bankruptcy Code or other Debtor Relief Laws, and not
dismissed  with  prejudice  within  forty-five  (45) days,  the  automatic  stay
provisions  of Section  362 of the  Bankruptcy  Code are hereby  modified  as to
Lender to the extent  necessary to implement the  provisions  hereof  permitting
set-off and the filing of financing statements or other instruments or documents
and Lender shall  automatically  and without  demand or notice (each of which is
hereby  waived) be entitled to immediate  relief from any automatic stay imposed
by Section 362 of the Bankruptcy  Code or otherwise,  on or against the exercise
of the rights and remedies otherwise available to Lender as provided in the Loan
Documents.

            22.12.  Investigations  and Inquiries.  Borrower  hereby  authorizes
Lender to conduct such investigations and inquiries as to credit,  operations of
Borrower,  the  Mortgaged  Property  and  Collateral  as shall be  necessary  or
desirable in connection with monitoring the Obligations, and all such persons of
whom

                                       81
<PAGE>

Lender may make such inquiry are  empowered to  cooperate  with,  and to provide
requested information to Lender.

            23. Miscellaneous.

            23.1.  Notices.  All notices,  requests and other  communications to
either party  hereunder  shall be in writing and shall be given to such party at
its address set forth below or at such other address as such party may hereafter
specify  for the  purpose  of notice to Lender or  Borrower.  Each such  notice,
request or other communication shall be effective:  (a) if given by mail, on the
third Business day after such notice is deposited in the United States Mail with
first class postage prepaid, addressed as aforesaid,  provided that such mailing
is by registered or certified mail,  return receipt  requested;  (b) if given by
overnight  delivery,  on the first  Business  Day after such notice is deposited
with a nationally  recognized overnight delivery service such as Federal Express
or UPS with all fees and charges prepaid, addressed as provided below; or (c) if
given by any other  means,  when  delivered  at the  address  specified  in this
Section 23.1.

        If to Borrower:    Bluegreen Vacations Unlimited, Inc.
                           4960 Conference Way North
                           Suite 100
                           Boca Raton, Florida  33431
                           Attention:  Anthony M. Puleo

        With a copy to:    Bluegreen Vacations Unlimited, Inc.
                           4960 Conference Way North
                           Suite 100
                           Boca Raton, Florida  33431
                           Attention:  James Martin, Esq., General Counsel

        If to Guarantor:   Bluegreen Corporation
                           4960 Conference Way North
                           Suite 100
                           Boca Raton, Florida  33431
                           Attention:  Anthony M. Puleo

        If to Lender:      Textron Financial Corporation
                           45 Glastonbury Boulevard
                           Glastonbury, Connecticut, 06033
                           Attention:  RFD Vice President

        With a copy to:    Textron Financial Corporation
                           40 Westminster Street
                           Providence, Rhode Island 02940-6687
                           Attention:  RFD Commission Counsel

                                       82
<PAGE>

            23.2. Term of Agreement. This Agreement shall continue in full force
and  effect  and  the  Liens  granted  hereby  and  the  duties,  covenants  and
liabilities of Borrower  hereunder and all the terms,  conditions and provisions
hereof  relating  thereto shall continue to be fully  operative until all of the
Obligations  and all  other  obligations  secured  by the  Collateral  have been
satisfied  in full  and  Lender  has no  further  obligation  to  make  Advances
hereunder.  Borrower  expressly agrees that if Borrower or any Guarantor makes a
payment  to  Lender,   which  payment  or  any  part  thereof  is   subsequently
invalidated, declared to be fraudulent or preferential, or otherwise required to
be repaid to a trustee,  receiver  or any other  party  under any Debtor  Relief
Laws, state or federal law, common law or equitable cause, then to the extent of
such repayment, the Obligations or any part thereof intended to be satisfied and
the  Liens  provided  for  hereunder  securing  the same  shall be  revived  and
continued in full force and effect as if said payment had not been made.

            23.3.  Survival.  All  representations,  warranties,  covenants  and
agreements  made by Borrower and Guarantor  herein,  in the  Commitment,  in any
other  Loan  Documents  or in  any  other  agreement,  document,  instrument  or
certificate delivered by or on behalf of Borrower or Guarantor under or pursuant
to the Loan Documents shall be considered to have been relied upon by Lender and
shall  survive  the  delivery  to Lender of such Loan  Documents  (and each part
thereof),  regardless of any investigation  made by or on behalf of Lender,  and
shall survive the making of any or all of the disbursements contemplated hereby.

            23.4.   Continuation   and   Investigation.   The   warranties   and
representations contained herein shall be and remain true and correct so long as
any of the  Obligations  have  not  been  satisfied,  or so  long as part of the
Obligations  shall  remain  outstanding,  and each  request by  Borrower  for an
Advance shall constitute an affirmation that the foregoing  representations  and
warranties remain true and correct as of the date thereof.

            23.5. Governing Law; Consent to Jurisdiction. THIS AGREEMENT AND THE
OTHER  LOAN  DOCUMENTS  (EXCEPT  AS MAY BE  EXPRESSLY  PROVIDED  THEREIN  TO THE
CONTRARY)  SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF RHODE  ISLAND,  EXCLUSIVE  OF ITS CHOICE OF LAWS  PRINCIPLES.  BORROWER
CONSENTS TO PERSONAL JURISDICTION BEFORE THE CIRCUIT COURT IN AND FOR PROVIDENCE
COUNTY,  RHODE ISLAND AND THE UNITED STATES  DISTRICT  COURT FOR THE DISTRICT OF
RHODE ISLAND. BORROWER WAIVES ANY OBJECTION WHICH THEY MAY NOW OR HEREAFTER HAVE
TO VENUE IN PROVIDENCE  COUNTY,  RHODE ISLAND OF ANY SUIT,  ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS AGREEMENT,  THE OBLIGATIONS CREATED HEREUNDER
OR ANY OF THE LOAN  DOCUMENTS  AND  FURTHER  WAIVES  ANY CLAIM  THAT  PROVIDENCE
COUNTY,  RHODE  ISLAND IS NOT A  CONVENIENT  FORUM

                                       83
<PAGE>

FOR ANY SUCH SUIT,  ACTION OR PROCEEDING.  SERVICE OF PROCESS ON BORROWER IN ANY
ACTION  ARISING  OUT  OF OR  RELATING  TO ANY OF THE  LOAN  DOCUMENTS  SHALL  BE
EFFECTIVE  IF MAILED TO BORROWER AT THE ADDRESS  LISTED FOR  BORROWER IN SECTION
23.1.

            23.6. Invalid Provisions.  If any provision of this Agreement or any
of the other Loan  Documents  is held to be  illegal,  invalid or  unenforceable
under present or future laws effective  during the term thereof,  such provision
shall be fully  severable,  this Agreement and the other Loan Documents shall be
construed and enforced as if such illegal,  invalid or  unenforceable  provision
had never  comprised  a part  hereof or thereof,  and the  remaining  provisions
hereof or  thereof  shall  remain  in full  force  and  effect  and shall not be
affected by the illegal,  invalid or unenforceable provision or by its severance
therefrom.  Furthermore,  in lieu  of such  illegal,  invalid  or  unenforceable
provision there shall be added  automatically as a part of this Agreement and/or
the Loan  Documents (as the case may be) a provision as similar in terms to such
illegal,  invalid or  unenforceable  provision  as may be possible and be legal,
valid and enforceable.

            23.7.  Successors  and  Assigns;  Third  Party  Beneficiaries.  This
Agreement  and the other Loan  Documents  shall be binding upon and inure to the
benefit of Borrower  and Lender and their  respective  successors  and  assigns;
provided  that  Borrower  may not  transfer  or  assign  any of their  rights or
obligations  under this  Agreement,  the  Commitment or the other Loan Documents
without the prior written consent of Lender. This Agreement and the transactions
provided for or  contemplated  hereunder or under any of the Loan  Documents are
intended  solely for the  benefit  of the  parties  hereto  and any of  Lender's
participants in the Obligations.  No third party shall have any rights or derive
any benefits  under or with respect to this  Agreement,  the  Commitment  or the
other Loan Documents  except for  participants in the Obligations or as provided
in  advance  in a  writing  signed on behalf of  Lender.  No person  other  than
Borrower,  shall have  standing to require  satisfaction  of such  conditions in
accordance  with their terms or be entitled to assume that Lender will refuse to
make advances in the absence of strict  compliance with any or all thereof,  and
no other person, other than Borrower, under any circumstance, shall be deemed to
be a  beneficiary  of such  conditions,  any and all of which Lender  freely may
waive  in whole or in part at any  time  it,  in its sole  discretion,  deems it
desirable to do so. In particular, Lender makes no representation and assumes no
obligation as to third parties concerning the quality of the Work by Borrower or
the absence  therefrom of defects.  In this  connection,  Borrower agrees to and
shall indemnify Lender and any of Lender's  participants in the Obligations from
any liability,  claim or loss and reasonable  attorneys fees and costs resulting
from the  disbursement  of the  Advances or from the  condition  of the Project,
whether  related to the quality of the Work or  otherwise  and  whether  arising
during or after the term of the Loan.  This Section  shall survive the repayment
of the  Obligations  and shall  continue in full force and effect so long as the
possibility of such liability, claim or loss exists.

                                       84
<PAGE>

            23.8. Amendment.  This Agreement may not be amended or modified, and
no term or provision hereof may be waived,  except by written  instrument signed
by the parties hereto.

            23.9. Counterparts;  Effectiveness; Facsimile. This Agreement may be
signed in any number of counterparts,  each of which shall be an original,  with
the  same  effect  as if the  signature  thereto  and  hereto  were on the  same
instrument.  This Agreement shall become  effective upon Lender's receipt of one
or more counterparts  hereof signed by Borrower and Lender. Any signature on any
Loan  Document or any  document  collateral  thereto,  delivered  by Borrower or
Guarantor by facsimile  transmission shall be deemed to be an original signature
thereto.

            23.10. Lender Not Fiduciary.  The relationship  between Borrower and
Lender is solely that of debtor and  creditor,  and Lender has no  fiduciary  or
other special relationship with Borrower or Guarantor,  and no term or provision
of any of the Loan Documents  shall be construed so as to deem the  relationship
between  Borrower  and  Lender to be other than that of  debtors  and  creditor.
Nothing  herein  contained  shall be construed to create a partnership  or joint
venture between Borrower and Lender,  and the parties hereby acknowledge that no
such relationship exists between them.

            23.11.  Total  Agreement.   This  Agreement,   and  the  other  Loan
Documents, including the Exhibits and Schedules thereto, is the entire agreement
between the  parties  relating to the subject  matter  hereof,  incorporates  or
rescinds all prior  agreements  and  understandings  between the parties  hereto
relating to the subject matter hereof, cannot be changed or terminated orally or
by  course  of  conduct,  and  shall be  deemed  effective  as of the date it is
accepted by Lender at the offices set forth above.

            23.12. Consents, Approvals and Discretion. Whenever Lender's consent
or  approval  is  required or  permitted,  as any  documents  or other items are
required to be acceptable to Lender, such consent,  approval or determination of
acceptability  must be in writing and shall be at the  reasonable  discretion of
Lender and may be  subject to such  conditions  as Lender  may  require,  unless
otherwise expressly provided hereunder or under the other Loan Documents.

            23.13.   Litigation.   TO  THE  FULLEST  EXTENT  NOT  PROHIBITED  BY
APPLICABLE  LAW WHICH CANNOT BE WAIVED,  BORROWER AND LENDER  HEREBY  KNOWINGLY,
VOLUNTARILY, INTENTIONALLY AND IRREVOCABLY WAIVE ANY AND ALL RIGHT TO A TRIAL BY
JURY IN ANY ACTION OR  PROCEEDING  TO  ENFORCE  OR DEFEND OR CLARIFY  ANY RIGHT,
POWER, REMEDY OR DEFENSE ARISING OUT OF OR RELATED TO THIS AGREEMENT,  THE OTHER
LOAN DOCUMENTS,  OR THE  TRANSACTIONS  CONTEMPLATED  HEREIN OR THEREIN,  WHETHER
SOUNDING  IN TORT OR  CONTRACT OR  OTHERWISE,  OR WITH  RESPECT TO

                                       85
<PAGE>

ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN)
OR ACTIONS OF ANY PARTY;  AND AGREE THAT ANY SUCH ACTION OR PROCEEDING  SHALL BE
TRIED BEFORE A JUDGE AND NOT BEFORE A JURY.  BORROWER AND LENDER  FURTHER  WAIVE
ANY RIGHT TO SEEK TO CONSOLIDATE  ANY SUCH  LITIGATION IN WHICH A JURY TRIAL HAS
BEEN WAIVED WITH ANY OTHER  LITIGATION  IN WHICH A JURY TRIAL  CANNOT OR HAS NOT
BEEN WAIVED. FURTHER,  BORROWER HEREBY CERTIFIES THAT NO REPRESENTATIVE OR AGENT
OF LENDER, NOR LENDER'S COUNSEL, HAS REPRESENTED,  EXPRESSLY OR OTHERWISE,  THAT
LENDER WOULD NOT, IN THE EVENT OF SUCH  LITIGATION,  SEEK TO ENFORCE THIS WAIVER
OF RIGHT TO JURY TRIAL PROVISION.  BORROWER  ACKNOWLEDGES THAT THE PROVISIONS OF
THIS SECTION ARE A MATERIAL  INDUCEMENT TO LENDER'S ACCEPTANCE OF THIS AGREEMENT
AND THE OTHER LOAN DOCUMENTS.

      The waiver and  stipulations  of Borrower and Lender in this Section 23.13
shall  survive the final payment or  performance  of all of the  Obligations  of
Borrower and all other  obligations  secured by the Collateral and the resulting
termination of this Agreement.

            23.14.  Submissions.  All documents,  agreements,  reports, surveys,
appraisals, insurance, financial information or other submissions (collectively,
the  "Submissions")  required  under  the  Loan  Documents  shall be in form and
content reasonably  satisfactory to Lender and performed at Borrower's  expense.
Lender  shall have the prior right of  approval  of any  person,  firm or entity
responsible  for preparing  each  Submission (a  "Preparer")  and may reject any
Submissions if Lender  believes in its reasonable  opinion that the  experience,
skill,  reputation  or other  aspect of the  Preparer is  unsatisfactory  in any
material respect.  All reports and appraisals  related to the Development Parcel
required pursuant to the Loan Documents shall be addressed to Lender and include
the following language:

                  "The   undersigned   acknowledges   that   Textron   Financial
            Corporation is relying on the within  information in connection with
            extending financing to Bluegreen Vacations Unlimited, Inc."

            23.15. Incorporation of Exhibits. This Agreement,  together with all
Exhibits and Schedules  hereto,  constitute one document and agreement  which is
referred to herein by the use of the defined term  "Agreement."  The definitions
contained  in any  part of this  Agreement  shall  apply  to all  parts  of this
Agreement.

            23.16.  Consent to Advertising and Publicity of Documents.  Borrower
agrees that Lender and its participants may, subject to prior review and consent
of Borrower,  which  consent  Borrower  agrees not to  unreasonably  withhold or
delay,

                                       86
<PAGE>

issue  and  disseminate  to  the  public   information   describing  the  credit
accommodation  entered into pursuant to this Agreement,  including the names and
addresses of Borrower and any subsidiaries and Affiliates,  the amount, interest
rate, maturity, collateral, and a general description of Borrower's business.

            23.17.  Control of  Association.  Lender agrees that Borrower  shall
only be obligated to act on behalf of the  Association or cause the  Association
to  act  at  such  time  that  Borrower  directly  or  indirectly   control  the
Association.

            23.18. Directly or Indirectly. Where any provision in this Agreement
refers to action to be taken by any Person,  or which such Person is  prohibited
from taking,  such provisions  shall be applicable  whether such action is taken
directly or indirectly by such Person.

            23.19.  Savings Clause.  Anything contained in this Agreement to the
contrary  notwithstanding,  the  obligations  of  Borrower  with  respect to the
repayment of the outstanding principal balance of the Loan shall be limited to a
maximum  aggregate  amount  equal to the  greater of (a) the  Advances  actually
received  by  Borrower  and the value of all other  consideration  and  benefits
received  by or for the benefit of Borrower  in  connection  with the  financing
transactions  contemplated  hereunder,  or (b) the largest amount that would not
render its obligations with respect thereto subject to avoidance as a fraudulent
transfer or  conveyance  under Section 548 of Title 11 of the United States Code
or any applicable provisions of comparable state,  federal,  provincial or other
applicable  law of any  jurisdiction  (collectively,  the  "Fraudulent  Transfer
Laws"),  if and to the extent  Borrower  (or trustee on its behalf) has properly
invoked  the  protections  of the  Fraudulent  Transfer  Laws.  In  making  such
determination,  all rights of  subrogation  and  contribution  of Borrower  with
respect to such obligations shall be deemed to be an asset of Borrower.

            23.20. Reimbursement for Taxes. Borrower will promptly, upon written
demand of Lender,  reimburse Lender for any taxes assessed against Lender by the
State of Florida or any subdivision  thereof or any other jurisdiction (with the
exception of income taxes payable by Lender) which are on account of or measured
by the  interest  income  received  by Lender  under the  Project  or in any way
imposed upon Lender in connection with the transactions  contemplated hereunder,
including, without limitation, any general intangible tax or documentary tax.

            23.21.  Headings.  Section  headings  have  been  inserted  in  this
Agreement as a matter of convenience of reference  only;  such Section  headings
are not a part of this Agreement and shall not be used in the  interpretation of
this Agreement.

            23.22.  Gender.  Words of any gender in this Agreement shall include
each other gender where appropriate.

                                       87
<PAGE>

            23.23.  Time  of  the  Essence.  Time  is of  the  essence  of  this
Agreement.

            23.24.  Conflict.  The provisions of this Agreement shall control in
the event of any conflict among it, the Commitment and any other Loan Document.

            23.25.  Joinder  and  Consent.  Lender  will join in and  consent to
Declarations,  easements and other documents  reasonably  required in connection
with   development  of  the  Project  provided  such  documents  are  reasonably
acceptable to Lender.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       88
<PAGE>

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

                       LENDER:

                       TEXTRON FINANCIAL CORPORATION,
                       a Delaware corporation

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

                       BORROWER:

                       BLUEGREEN VACATIONS UNLIMITED, INC., a
                       Florida corporation

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

                       GUARANTOR:

                       BLUEGREEN CORPORATION, a Massachusetts
                       corporation

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

<PAGE>
                                  Schedule 9.8

                                      Taxes

The Tennessee  Department of Revenue (the  "Department")  advised Bluegreen that
rather than  attempting to impose a sales tax on the sale of vacation  ownership
interests  in  Tennessee,  it intends to try to impose a sales tax on the use of
accommodations  in  Bluegreen's  Tennessee  properties  by Bluegreen  owners who
became members of Bluegreen  Vacation Club through the purchase of non-Tennessee
timeshare interests. The Department has audited the period from December 1, 2001
through December 21, 2004 and has given a Notice of Assessment for sales and use
taxes for approximately $636,000.  Bluegreen intends to vigorously challenge the
assessment of sales taxes by the Department; however, there is no assurance that
Bluegreen will be successful.

The Internal Revenue Service ("IRS") has notified Bluegreen Corporation that the
IRS will audit the company's 2004 federal income tax return.

<PAGE>

                                  Schedule 9.9

                                  Subsidiaries

Bluegreen Corporation
Bluegreen Interiors, LLC
Bluegreen Purchasing and Design, Inc.
Bluegreen Resorts Management, Inc.
Encore Rewards, Inc.
Great Vacation Destinations, Inc. (f/k/a Leisure Plan, Inc.)
Leisure Communication Network, Inc.
Leisurepath, Inc.
New England Advertising Corporation
Pinnacle Vacations, Inc.
Resort Title Agency, Inc.

<PAGE>

                                  Schedule 9.10

                                   Litigation

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

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

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

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

      Litigation  has been initiated  against  Bluegreen and  LeisurePath,  Inc.
("LeisurePath"),  a subsidiary of Bluegreen whose principal business is a travel
club, involving claims asserted by consumers with regard to sales of LeisurePath
memberships through Vacation Station, Inc., an independent retail outlet. Claims
asserted  against  Bluegreen  and its  affiliates  relate to  transactions  that
allegedly  occurred in May, 2005.  LeisurePath  had terminated its  relationship
with Vacation  Station,  Inc.  prior to that time.  Bluegreen  believes that the
likelihood of an unfavorable  outcome resulting in a material loss to be remote;
however Bluegreen cannot predict the outcome of the litigation.

<PAGE>

                                  Schedule 9.23

                               Names and Addresses

                             Bluegreen Vacations Unlimited, Inc.
                             4960 Conference Way North
                             Suite 100
                             Boca Raton, Florida 33431

<PAGE>

                                 Schedule 10.18

                                Project Contracts

AIA A101 & A201 Standard  Form of Agreement  between  Owner and  Contractor  and
General Conditions by and between Bluegreen Vacations Unlimited, Inc. and WPC I,
Inc. dba Winter Park Construction, dated August 17, 2005

AIA B151 Abbreviated  Standard Form of Agreement  between Owner and Architect by
and between  Bluegreen  Corporation  and Forum  Architecture & Interior  Design,
Inc., dated September 7, 2004 (Building 5)

AIA B151 Abbreviated  Standard Form of Agreement  between Owner and Architect by
and between  Bluegreen  Corporation  and Forum  Architecture & Interior  Design,
Inc., dated September 7, 2004 (Building 6)

Landscape  Agreement by and between  Tidewater  Landscape  Management and Grande
Villas at World Golf Village Condominium Association, Inc. dated January 1, 2005

Lease Agreement by and between InnRcom Communications,  LLC and Grande Villas at
World Golf Village Condominium Association, Inc. dated February 1, 2005.

      Use  Agreement  by and between  Serenata  Beach Club and Grande  Villas at
World Golf Village Condominium Association, Inc. dated January 1, 2005

<PAGE>

                                  Schedule 14.7

                                 Permitted Liens

<PAGE>

                                   Schedule 21

                             Form of Partial Release

<PAGE>

                                   EXHIBIT A-1

                          Legal Description of Phase 2

<PAGE>

                                   EXHIBIT A-2

                       Legal Description of Existing Units

<PAGE>

                                    EXHIBIT B

                              Intentionally Omitted

<PAGE>

                                    EXHIBIT C

                    Form of Request for Construction Advance

                                  See Attached

<PAGE>

                                    EXHIBIT D

                               Approved Site Plan

<PAGE>

                                    EXHIBIT E

                            Phase 2 Cost Certificate

                                  See Attached

<PAGE>

                                    EXHIBIT F

                          Form of Officer's Certificate

Date:_________________

      In  accordance  with  Section 13.4 of the  Construction  Loan and Security
Agreement  dated  as of March  __,  2007,  by and  between  Bluegreen  Vacations
Unlimited, Inc. ("Borrower") and Textron Financial Corporation ("Lender") (as it
may be amended, modified,  supplemented or restated, the "Loan Agreement"),  the
undersigned hereby certifies to Lender that as of the date described above:

      1.    The  undersigned  is  the  chief  financial   officer  of  Bluegreen
            Corporation ("Guarantor").

      2.    Borrower has  observed,  performed  and complied with each and every
            undertaking contained in the Loan Agreement and the Loan Documents.

      3.    Guarantor's  Form 10-Q or Form 10-K Financial  Statements  have been
            delivered to Lender, as required under the Loan Agreement.

      4.    There does not exist any Incipient Default or Event of Default under
            the Loan Agreement or Loan Documents.

      Capitalized  terms shall have the meanings set forth  therefor in the Loan
Agreement.  The  certifications  in this Officer's  Certificate  are made by the
undersigned,  in his capacity as the chief financial officer of Guarantor,  from
the  undersigned's  own  personal  knowledge,  after due  inquiry  and with full
knowledge that Lender will rely upon this Officer's Certificate. The undersigned
has executed and delivered  this  Officer's  Certificate  as an  inducement  for
Lender to  continue  to extend  advances  to the  Borrower  pursuant to the Loan
Agreement.

                                BLUEGREEN CORPORATION, a
                                Massachusetts corporation

                                By:
                                     ----------------------------

                                Name/Title:
                                           ----------------------

Dated: ______________, 200___

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