Document:

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                                                                  EXHIBIT 10.106

                                                                  EXECUTION COPY

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                          SALE AND SERVICING AGREEMENT

                                      AMONG

                        BXG RECEIVABLES OWNER TRUST 2000,
                                   AS ISSUER,

                  BLUEGREEN RECEIVABLES FINANCE CORPORATION IV,
                               AS TRUST DEPOSITOR,

                             BLUEGREEN CORPORATION,
                          INDIVIDUALLY AND AS SERVICER,

                         CONCORD SERVICING CORPORATION,
                              AS BACK-UP SERVICER,

                              VACATION TRUST, INC.,
                                AS CLUB TRUSTEE,

                      U.S. BANK TRUST NATIONAL ASSOCIATION,
                       AS INDENTURE TRUSTEE AND CUSTODIAN,

                             HELLER FINANCIAL, INC.,
                            AS FACILITY ADMINISTRATOR

                                       AND

                             HELLER FINANCIAL, INC.

                                       AND

                               BARCLAYS BANK PLC,
                                 AS NOTEHOLDERS

                          DATED AS OF SEPTEMBER 1, 2000

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                                                     TABLE OF CONTENTS
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         ARTICLE ONE  DEFINITIONS.................................................................................2
               SECTION 1.1.  DEFINITIONS..........................................................................2
               SECTION 1.2.  USAGE OF TERMS.......................................................................2
               SECTION 1.3.  SECTION REFERENCES...................................................................2
               SECTION 1.4.  OTHER INTERPRETIVE PROVISIONS........................................................2
               SECTION 1.5.  ACCOUNTING TERMS.....................................................................2
         ARTICLE TWO  TRANSFER OF RECEIVABLES.....................................................................2
               SECTION 2.1.  SALES................................................................................2
               SECTION 2.2.  PROCEDURES FOR PURCHASES.............................................................5
               SECTION 2.3.  ESTABLISHMENT OF ACCOUNTS; RESERVE ACCOUNT...........................................6
               SECTION 2.4.  DEPOSITS TO ACCOUNTS.................................................................7
               SECTION 2.5.  INVESTMENT OF ACCOUNTS...............................................................7
               SECTION 2.6.  PAYMENTS AND COMPUTATIONS; FUNDING INDEMNITY FOR FAILED PURCHASE.....................7
               SECTION 2.7.  ADDITION/SUBSTITUTION OF RECEIVABLES.................................................8
               SECTION 2.8.  EXTENSION OF PURCHASE PERIOD; INCREASE IN COMMITMENT................................10
               SECTION 2.9.  ACCEPTANCE BY TRUST.................................................................10
               SECTION 2.10.  MONTHLY DISTRIBUTIONS..............................................................11
               SECTION 2.11.  DISTRIBUTIONS......................................................................11
         ARTICLE THREE  SERVICING OF RECEIVABLES.................................................................15
               SECTION 3.1.  RESPONSIBILITY FOR RECEIVABLE ADMINISTRATION........................................15
               SECTION 3.2.  STANDARD OF CARE....................................................................15
               SECTION 3.3.  FILING..............................................................................15
               SECTION 3.4.  RECORDS.............................................................................15
               SECTION 3.5.  INSPECTION..........................................................................15
         ARTICLE FOUR  CONDITIONS OF PURCHASES...................................................................16
               SECTION 4.1.  CONDITIONS PRECEDENT TO INITIAL PURCHASE............................................16
               SECTION 4.2.  CONDITIONS PRECEDENT TO ALL PURCHASES...............................................16
         ARTICLE FIVE  REPRESENTATIONS AND WARRANTIES............................................................17
               SECTION 5.1.  REPRESENTATIONS AND WARRANTIES OF THE TRUST DEPOSITOR...............................18
               SECTION 5.2.  REPRESENTATIONS AND WARRANTIES OF TRUST DEPOSITOR RELATING TO THE RECEIVABLES.......22
               SECTION 5.3.  REPRESENTATIONS AND WARRANTIES OF THE CLUB AND THE CLUB TRUSTEE.....................24
               SECTION 5.4.  REPRESENTATIONS AND WARRANTIES OF THE SERVICER......................................26
         ARTICLE SIX  GENERAL COVENANTS..........................................................................28
               SECTION 6.1.  GENERAL COVENANTS OF THE TRUST DEPOSITOR............................................28
               SECTION 6.2.  GENERAL COVENANTS OF THE CLUB TRUSTEE...............................................33
               SECTION 6.3.  GENERAL COVENANTS OF THE SERVICER...................................................35
               SECTION 6.4.  RELEASE OF INTEREST IN INTERVAL.....................................................38
               SECTION 6.5.  RETRANSFER OF INELIGIBLE RECEIVABLES................................................38
         ARTICLE SEVEN  SUBJECT TO CLUB TRUST AGREEMENT..........................................................40
               SECTION 7.1.  RIGHTS SUBJECT TO CLUB TRUST AGREEMENT..............................................40

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         ARTICLE EIGHT  SERVICER TERMINATION EVENTS..............................................................40
               SECTION 8.1.  SERVICER TERMINATION EVENTS.........................................................40
               SECTION 8.2.  SERVICE TRANSFER....................................................................42
               SECTION 8.3.  SUCCESSOR SERVICER TO ACT; APPOINTMENT OF SUCCESSOR SERVICER........................43
               SECTION 8.4.  EFFECT OF TRANSFER..................................................................43
               SECTION 8.5.  SUCCESSOR SERVICER INDEMNIFICATION..................................................44
               SECTION 8.6.  RESPONSIBILITIES OF THE SUCCESSOR SERVICER..........................................44
               SECTION 8.7.  WAIVER OF SERVICER TERMINATION EVENT................................................44
         ARTICLE NINE  PERFORMANCE AND DUTIES OF SERVICER........................................................45
               SECTION 9.1.  GENERAL REQUIREMENTS OF SERVICER....................................................45
               SECTION 9.2.  SERVICER AS INDEPENDENT CONTRACTOR..................................................45
               SECTION 9.3.  [OMITTED]...........................................................................45
               SECTION 9.4.  DESCRIPTION OF REPORTS..............................................................45
               SECTION 9.5.  OFFICER'S CERTIFICATE...............................................................47
               SECTION 9.6.  ANNUAL REPORT OF ACCOUNTANTS........................................................47
               SECTION 9.7.  ANNUAL STATEMENT OF COMPLIANCE FROM SERVICER........................................48
               SECTION 9.8.  SALES AND INVENTORY REPORTS.........................................................48
               SECTION 9.9.  QUARTERLY FINANCIAL REPORTS.........................................................48
               SECTION 9.10.  TIME SHARE ASSOCIATION REPORTS.....................................................48
               SECTION 9.11.  AUDIT REPORTS......................................................................49
               SECTION 9.12.  OTHER REPORTS......................................................................49
               SECTION 9.13.  SEC REPORTS........................................................................49
               SECTION 9.14.  SERVICER REMARKETING...............................................................49
               SECTION 9.15.  SERVICER ADVANCES..................................................................50
               SECTION 9.16.  CONSIDERATION......................................................................50
         ARTICLE TEN  FACILITY ADMINISTRATOR.....................................................................50
               SECTION 10.1.  APPOINTMENT; NATURE OF RELATIONSHIP................................................50
               SECTION 10.2.  POWERS.............................................................................50
               SECTION 10.3.  GENERAL IMMUNITY...................................................................51
               SECTION 10.4.  NO RESPONSIBILITY FOR ADVANCES, RECITALS, ETC......................................51
               SECTION 10.5.  ACTION ON INSTRUCTIONS OF NOTEHOLDERS..............................................51
               SECTION 10.6.  EMPLOYMENT OF AGENTS AND COUNSEL...................................................52
               SECTION 10.7.  RELIANCE ON DOCUMENTS; COUNSEL.....................................................52
               SECTION 10.8.  FACILITY ADMINISTRATOR'S REIMBURSEMENT AND INDEMNIFICATION.........................52
               SECTION 10.9.  NOTICE OF DEFAULT..................................................................52
               SECTION 10.10.  RIGHTS AS A NOTEHOLDER............................................................53
               SECTION 10.11.  NOTEHOLDER CREDIT DECISION........................................................53
               SECTION 10.12.  SUCCESSOR FACILITY ADMINISTRATOR..................................................53
         ARTICLE ELEVEN  ASSIGNMENTS; REPURCHASE OPTION..........................................................54
               SECTION 11.1.  ASSIGNMENTS; PARTICIPATIONS........................................................54
               SECTION 11.2.  TRUST DEPOSITOR'S REPURCHASE OPTION................................................55
         ARTICLE TWELVE  TERMINATION.............................................................................55
               SECTION 12.1.  SALE OF TRUST ASSETS...............................................................55
         ARTICLE THIRTEEN  MISCELLANEOUS.........................................................................56

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               SECTION 13.1.  AMENDMENTS AND WAIVERS.............................................................56
               SECTION 13.2.  PROTECTION OF TITLE TO TRUST.......................................................57
               SECTION 13.3.  NOTICES, ETC.......................................................................58
               SECTION 13.4.  NO WAIVER; REMEDIES................................................................60
               SECTION 13.5.  BINDING EFFECT.....................................................................60
               SECTION 13.6.  TERM OF THIS AGREEMENT.............................................................60
               SECTION 13.7.  GOVERNING LAW; CONSENT TO JURISDICTION; WAIVER OF OBJECTION TO VENUE...............61
               SECTION 13.8.  WAIVER OF JURY TRIAL...............................................................61
               SECTION 13.9.  COSTS, EXPENSES AND TAXES..........................................................61
               SECTION 13.10.  NO BANKRUPTCY COVENANT............................................................62
               SECTION 13.11.  PROTECTION OF OWNERSHIP INTERESTS OF THE TRUST; INTENT OF PARTIES; BACK-UP
                               SECURITY INTEREST.................................................................62
               SECTION 13.12.  BACK-UP SECURITY INTEREST.........................................................63
               SECTION 13.13.  EXECUTION IN COUNTERPARTS; SEVERABILITY; INTEGRATION..............................64
               SECTION 13.14.  FURTHER ASSURANCES................................................................64
               SECTION 13.15.  SAVINGS CLAUSE....................................................................64
               SECTION 13.16.  LIMITATION OF LIABILITY OF OWNER TRUSTEE AND INDENTURE TRUSTEE....................64
               SECTION 13.17.  CONFIDENTIALITY...................................................................65

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                                    SCHEDULES

 SCHEDULE I        Condition Precedent Documents
 SCHEDULE II       Servicer Reports
 SCHEDULE III      Tradenames, Fictitious Names and "Doing Business As" Names
 SCHEDULE IV       Fees
 SCHEDULE V        Location of Receivables Files

                                    EXHIBITS

 EXHIBIT A         Form of Request Notice For Initial and Incremental Purchases
 EXHIBIT B         Form of List of Deliveries for all Advances
 EXHIBIT C         List of Resorts
 EXHIBIT D         Form of Monthly Report
 EXHIBIT E         Club Trust Agreement
 EXHIBIT F         Provisions of the Trust Depositor's Certificate of
                     Incorporation
 EXHIBIT G         Form of Servicing Officer's Certificate
 EXHIBIT H         Form of Assignment
 EXHIBIT I         Form of Subsequent Transfer Agreement
 EXHIBIT J         Form of Substitute Receivables Transfer Agreement
 EXHIBIT K         Credit Policy
 EXHIBIT l         Collection Policies

                                     ANNEXES

 Definitions Annex

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                          SALE AND SERVICING AGREEMENT

         SALE AND SERVICING AGREEMENT, dated as of September 1, 2000, among BXG
Receivables Owner Trust 2000 (together with its successors and assigns, the
"ISSUER" or the "TRUST"), Bluegreen Receivables Finance Corporation IV (together
with its successor and assigns, the "TRUST DEPOSITOR"), U.S. Bank Trust National
Association (in its capacity as Indenture Trustee, together with its successors
and assigns, the "INDENTURE TRUSTEE" and in its capacity as Custodian, together
with its successors and assigns, the "CUSTODIAN"), Vacation Trust, Inc., as club
trustee under the Club Trust Agreement (in such capacity, the "CLUB TRUSTEE");
Concord Servicing Corporation ("BACK-UP SERVICER"), Bluegreen Corporation
(individually to the extent set forth herein, together with its successor and
assigns, "BLUEGREEN" or, in its capacity as Servicer, together with its
successors and assigns, the "SERVICER"), Heller Financial, Inc., in its capacity
as facility administrator ("FACILITY ADMINISTRATOR"), and Heller Financial, Inc.
and Barclays Bank PLC, as Noteholders ("NOTEHOLDERS").

         WHEREAS, the Trust desires to purchase from time to time from the Trust
Depositor the Trust Assets including, but not limited to, the Receivables
related to the financing of certain timeshare interests by the Sellers and
subsequently sold by the Sellers to the Trust Depositor;

         WHEREAS, the Trust Depositor is willing to sell the Trust Assets to the
Trust pursuant to the terms hereof;

         WHEREAS, the Heller Financial, Inc. is willing to act as Facility
Administrator under the Transaction Documents;

         WHEREAS, Bluegreen is willing to act as owner trust administrator under
the Administration Agreement;

         WHEREAS, U.S. Bank Trust National Association is willing to act as
Indenture Trustee under the Indenture and as Custodian under the Custodial
Agreement;

         WHEREAS, Concord Servicing Corporation is willing to act as Back-Up
Servicer under the Back-Up Servicing Agreement;

         WHEREAS, the Club Trustee is a limited purpose entity which, on behalf
of the Beneficiaries, holds title to certain Intervals and Deeds relating to
Receivables sold pursuant to this Agreement;

         WHEREAS, Bluegreen is willing and has agreed pursuant hereto to act as
Servicer for the Trust Assets and to service the Receivables pursuant to the
terms hereof;

         WHEREAS, the Noteholders have agreed to purchase notes issued by the
Trust to facilitate the Trust's purchase of the Trust Assets;

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         NOW, THEREFORE, in consideration of the premises and the mutual
covenants herein contained, the parties hereto agree as follows:

                                  ARTICLE ONE

                                   DEFINITIONS

         SECTION 1.1 DEFINITIONS. Capitalized terms used but not otherwise
defined herein shall have the meanings ascribed thereto in the Definitions
Annex.

         SECTION 1.2 USAGE OF TERMS. With respect to all terms in this
Agreement, the singular includes the plural and the plural the singular; words
importing any gender include the other gender; references to "WRITING" include
printing, typing, lithography and other means of reproducing words in a visible
form; references to agreements and other contractual instruments include all
amendments, modifications and supplements thereto or any changes therein entered
into in accordance with their respective terms and not prohibited by this
Agreement; references to Persons include their permitted successors and assigns;
and the term "INCLUDING" means "INCLUDING WITHOUT LIMITATION."

         SECTION 1.3 SECTION REFERENCES. All section references, unless
otherwise indicated, shall be to Sections in this Agreement.

         SECTION 1.4 OTHER INTERPRETIVE PROVISIONS. Except to the extent
otherwise specified in the particular term or provision at issue, this Agreement
(including the Definitions Annex hereto) shall be interpreted and construed in
accordance with the Document Conventions.

         SECTION 1.5 ACCOUNTING TERMS. All accounting terms used but not
specifically defined herein shall be construed in accordance with generally
accepted accounting principles in the United States.

                                  ARTICLE TWO

                             TRANSFER OF RECEIVABLES

         SECTION 2.1 SALES.

                  (a) Subject to the terms and conditions of this Agreement, the
Trust Depositor shall sell and assign to the Trust the Trust Assets from time to
time designated and identified for purchase in accordance with SECTION 2.2
hereof, and the Trust agrees to make such purchases from time to time (the first
such date, the "INITIAL PURCHASE DATE") during the period from the Closing Date
to but not including the Purchase Period Termination Date (the first such sale
and purchase to be effected hereunder, the "INITIAL PURCHASE"; each subsequent
sale and purchase, an "INCREMENTAL PURCHASE"; and any such sale and purchase, a
"PURCHASE"). Under no circumstances, however, shall the Trust be obligated to
make any Purchase if, after giving effect to such Purchase, either (i) the
aggregate Outstanding Amount for all Classes of Notes would exceed the Note
Purchase Limit or (ii) the aggregate Outstanding Amount for all Classes of Notes

                                      -2-
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would exceed Availability. Upon the payment of the related Cash Purchase Price
(as defined below) for the Initial Purchase or any Incremental Purchase, the
Trust Depositor shall have, and shall be deemed hereunder to have, irrevocably
and absolutely sold, assigned, transferred and conveyed to the Trust, without
recourse, representation or warranty, express or implied, except as provided in
the Transaction Documents, all right, title and interest of the Trust Depositor
in and to the Trust Assets relating to such Initial Purchase or Incremental
Purchase, as the case may be. The aggregate amount of all advances made by the
Noteholders during the Purchase Period shall not exceed the Note Purchase Limit.

                  (b) The purchase price for the Purchased Receivables in each
Asset Pool Portion shall be the applicable Cash Purchase Price. The "CASH
PURCHASE PRICE" shall be an amount equal to the product of (i) the Receivable
Balance as of the applicable Cutoff Date of the Eligible Receivables to be
purchased, multiplied by (ii) the Credit Enhancement Factor(s) in effect on such
Purchase Date. Subject to the satisfaction of the conditions and on the terms
set forth herein, the Trust shall pay to the Trust Depositor the Cash Purchase
Price for the Purchased Receivable on the related Purchase Date in accordance
with the provisions of SECTION 2.2(B).

         On the date of the Initial Purchase, on each Incremental Purchase Date
and on each Subsequent Transfer Date, the Trust Depositor shall sell, transfer,
assign, set over and otherwise absolutely convey to the Trust by execution of an
Assignment substantially in the form of EXHIBIT H hereto:

                           (i) the Receivables (including Subsequent
                  Receivables) conveyed or being conveyed to the Trust hereunder
                  and specified on the List of Receivables (or Subsequent List
                  of Receivables) delivered to the Facility Administrator and
                  the Custodian, and all payments of interest and principal,
                  other Collections thereon and monies received, due or to
                  become due in payment of such Receivables after the Cutoff
                  Date;

                           (ii) the Mortgages and other instruments or documents
                  securing such Receivables;

                           (iii) the Receivables Files;

                           (iv) all payments made or to be made after the Cutoff
                  Date with respect to such Receivables or the Obligor
                  thereunder under any guarantee or similar credit enhancement
                  with respect to such Receivables;

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                           (v) all Insurance Proceeds with respect to any such
                  Receivables, if applicable;

                           (vi) all rights of the Trust Depositor under the Sale
                  and Contribution Agreement including but not limited to all
                  rights with respect to the Receivables, including, without
                  limitation, in respect of the obligation of the Sellers to
                  repurchase or replace Receivables under certain circumstances
                  as specified therein;

                           (vii) the Trust Accounts and all Trust Account
                  Property;

                           (viii) each Assignment;

                           (ix) all rights under the Interest Rate Cap
                  Agreements; and

                           (x) all income from and proceeds of the foregoing
                  (the property in clauses (i)-(x), being the "TRUST Assets").

Although the Trust Depositor and the Trust agree that such transfer is intended
to be a sale of ownership of the Trust Assets, rather than the granting of a
security interest to secure a borrowing, and that the Trust Assets shall not be
property of the Trust Depositor, in the event, notwithstanding such intent, such
transfer is deemed to be a grant of a security interest to secure a borrowing,
the Trust Depositor shall be deemed to have granted (and hereby grants to) the
Trust a perfected first priority security interest in such Trust Assets (subject
to Permitted Liens) and this Agreement shall constitute a security agreement
under applicable law securing the repayment of the purchase price paid hereunder
and the obligations and/or interests provided for in this Agreement and the
other Transaction Documents and in the order and priorities, and subject to the
other terms and conditions of this Agreement.

                  (c) Upon payment of the Cash Purchase Price by the Trust in
the amount determined in accordance with SECTION 2.1(B) and SECTION 2.2(B) with
respect to all Trust Assets purchased on a Purchase Date, the ownership of all
such Trust Assets will be solely vested in the Trust. None of the Sellers,
Servicer, Trust Depositor nor Club Trustee shall take any action inconsistent
with such ownership and shall not claim any ownership interest in any Trust
Asset. The Trust Depositor, the Sellers, Servicer and Club Trustee shall each
indicate in their respective books and records that ownership of each Purchased
Receivable and related Trust Assets is held by the Trust. In addition, each of
the Trust Depositor, the Sellers and the Servicer shall respond to any inquiries
with respect to ownership of the Trust Assets by stating that it is no longer
the owner of the Trust Assets and that ownership of the Trust Assets is held by
the Trust. Any documents relating to the Purchased Receivables retained by the
Trust Depositor, the Sellers, the Servicer, or Club Trustee shall be held in
trust by the Trust Depositor, the Sellers, the Servicer and the Club Trustee,
for the benefit of the Trust, and possession of any incident of ownership

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relating to the Purchased Receivables so retained is for the sole purpose of
facilitating the servicing of the Purchased Receivables or otherwise at the
direction and in the discretion of the Facility Administrator. Such retention
and possession (other than retention by the Club Trustee of Deeds relating to
Receivables as to which the rights of the Trust, as an Interest Holder
Beneficiary (as defined in the Club Trust Agreement) shall be as set forth in
the Club Trust Agreement) is at the will of the Trust and in a custodial
capacity for the benefit of the Trust and its assignees only. Subject to the
rights of the Beneficiaries and the other provisions of the Club Trust
Agreement, the Facility Administrator may direct the Club Trustee at any time to
transfer any Deed(s) relating to any Receivable purchased hereunder to the Trust
or its nominee; PROVIDED that any such transfer will be made subject to the
Mortgage relating thereto, if any.

         SECTION 2.2. PROCEDURES FOR PURCHASES.

                  (a) During the Purchase Period, no later than twenty (20) days
prior to each Purchase Date, the Trust Depositor shall notify the Indenture
Trustee and the Facility Administrator of the intent to effect a Purchase and
the proposed Purchase Date thereof. During the Purchase Period, no later than
10:00 a.m. (Chicago, Illinois time) on a date which is at least two (2) Business
Days before any intended Purchase Date, the Trust Depositor will deliver or
cause to be delivered to the Indenture Trustee and the Facility Administrator a
Request Notice substantially in the form of EXHIBIT A hereto. In the event that
the Trust Depositor does not provide a properly completed Request Notice (and
subject to all other terms and conditions to such Purchase hereunder), the Trust
will not be obligated to purchase Eligible Receivables on such intended Purchase
Date until such time as such terms and conditions are met. Each such Request
Notice shall specify, among other things, (i) the aggregate amount of such
Purchase, which shall be in a minimum amount equal to $10,000,000, or such
lesser amount as may be equal to the then unused portion of the Note Purchase
Limit, (ii) the intended Purchase Date for such Purchase, and (iii) the
aggregate Outstanding Amount for all Classes of Notes, Availability and the Note
Purchase Limit, both immediately preceding and after giving effect to such
Purchase.

                  (b) On each Purchase Date, and subject to the satisfaction of
the conditions of Article IV hereof and Articles IV and V of the Note Purchase
Agreements, the Servicer will prepare and deliver an Assignment to the Trust
Depositor and the Trust in the form of EXHIBIT H hereto with respect to the
Trust Assets being purchased on such Purchase Date by the Trust. The Trust
Depositor and the Trust shall thereupon execute such Assignment and deliver
executed copies thereof to the Servicer who will in turn cause a fully executed
copy of such Assignment to be delivered to the Indenture Trustee, the Custodian
and the Facility Administrator. The Trust shall thereupon pay to the Trust
Depositor the Cash Purchase Price for such Trust Assets, by wire transfer in
same day funds in accordance with the wire transfer instructions specified in
the related Request Notice. The Trust Depositor shall be solely responsible for
obtaining ownership of the Trust Assets from the Sellers pursuant to the Sale
and Contribution Agreement or otherwise, prior to transfer of ownership of such
Trust Assets to the Trust under this Agreement.

                                      -5-
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                  (c) The Facility Administrator will promptly notify the
Noteholders of the receipt of a Request Notice.

         SECTION 2.3. ESTABLISHMENT OF ACCOUNTS; RESERVE ACCOUNT.

                  (a) Prior to or simultaneously with the execution and delivery
of this Agreement, the Servicer shall (i) establish an Eligible Deposit Account
in the name of the Trust, titled "BXG RECEIVABLES OWNER TRUST 2000 LOCKBOX
ACCOUNT RE BLUEGREEN RECEIVABLES SALE AND SERVICING AGREEMENT" (the "LOCKBOX
ACCOUNT"), and (ii) enter into the Lockbox Agreement which shall direct that all
monies deposited in the Lockbox Account shall be forwarded in accordance with
Section 2.4. The Trust Depositor and the Servicer shall send to the Lockbox Bank
for deposit into the Lockbox Account all Collections they may receive in respect
of Purchased Receivables no later than the next Business Day following the date
of receipt thereof. Any Collections in respect of Purchased Receivables held by
the Trust Depositor or the Servicer pending transfer to the Lockbox Account
shall be held in trust for the benefit of the Indenture Trustee and the
Noteholders until such amounts are deposited into the Lockbox Account as set
forth above. The Servicer shall receive evidence of all deposits made to the
Lockbox Account and shall post them, on a daily basis, to the respective
Receivables upon receipt.

                  (b) Prior to or simultaneously with the execution and delivery
of this Agreement, the Servicer shall establish an Eligible Deposit Account with
and in the name of the Indenture Trustee for the benefit of the Noteholders
titled "BXG RECEIVABLES OWNER TRUST 2000 COLLECTION ACCOUNT RE BLUEGREEN
RECEIVABLES SALE AND SERVICING AGREEMENT" (the "COLLECTION ACCOUNT"). The Trust
Depositor and the Servicer shall deposit all Collections they may receive in
respect of any Interest Rate Cap Agreement into the Collection Account no later
than the next Business Day following the date of receipt thereof.

                  (c) Prior to or simultaneously with the execution and delivery
of this Agreement, the Trust Depositor and the Indenture Trustee shall establish
an Eligible Deposit Account in the name of the Indenture Trustee for the benefit
of the Noteholders titled "BXG RECEIVABLES OWNER TRUST 2000/BLUEGREEN FACILITY
RESERVE ACCOUNT" (the "RESERVE ACCOUNT").

                  (d) Prior to the Facility Termination Date, on or prior to
each Payment Date (and in anticipation of allocations and distributions to be
made on such Payment Date pursuant to Section 2.6), the Servicer in consultation
with the Facility Administrator, and based upon information provided in the
Monthly Report delivered by the Servicer to the Facility Administrator and the
Indenture Trustee two (2) Business Days prior to the related Payment Date, shall
determine the extent to which Available Amounts in the Collection Account
(including proceeds of any Servicer Advance deposited therein in accordance with
Section 9.15) are insufficient to pay Indenture Trustee Fees, Owner Trustee
Fees, Facility Administrator Fees, Minimum Usage Fees, Lockbox Fees, Protective
Advances, Back-Up Servicer Fees, Custodian Fees, Unreimbursed Servicer Advances,
Servicing Fees (if the Servicer is not Bluegreen or an Affiliate of Bluegreen)
as well as the Note Interest Distributable Amount and Note Principal
Distributable Amount required on such Payment Date. To the extent of
insufficiencies with respect to the payments to be made pursuant to SECTIONS
2.11(A)(VIII), (A)(IX), (A)(X) and (A)(XI) on or prior to each Payment Date
amounts held in the Reserve Account shall be transferred to the Collection

                                      -6-
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Account, treated as Available Amounts for such Payment Date and thereafter
applied in order for any of such payments or allocations to be made. After the
occurrence and during the continuance of an Event of Default or Termination
Event all amounts held in the Reserve Account shall be transferred to the
Collection Account and applied and allocated as Available Amounts on the Payment
Date with respect to the related Collection Period to the extent of
insufficiencies with respect to the payments to be made pursuant to SECTIONS
2.11(B)(VIII), (B)(IX), (B)(X), (B)(XI), (B)(XIV) and (B)(XV).

         SECTION 2.4. DEPOSITS TO ACCOUNTS.

         On each Monday, Wednesday, and Friday (or, if any Monday, Wednesday or
Friday is not a Business Day, then on the next succeeding Business Day) and the
last Business Day of each month pursuant to the Lockbox Agreement, all
Collections in the Lockbox Account shall be transferred by automated wire by the
Lockbox Bank to the Collection Account. In addition, the proceeds of Servicer
Advances made pursuant to SECTION 9.15, transfers from the Reserve Account made
pursuant to SECTION 2.3(D), and payments of any Transfer Deposit Amount received
from the Sellers or Trust Depositor shall be deposited to the Collection
Account.

         SECTION 2.5. INVESTMENT OF ACCOUNTS.

         Subject to the provisions of this SECTION 2.5, amounts on deposit in
any Trust Account (other than the Lockbox Account) shall be invested in
Permitted Investments. Until the Facility Termination Date, the Indenture
Trustee, at the direction of the Servicer, shall invest all such amounts in
Permitted Investments selected by the Servicer that mature no later than the
immediately succeeding Payment Date. On and after the Facility Termination Date,
any investment of such amounts in Permitted Investments shall be solely at the
discretion of the Facility Administrator. All Investment Earnings shall be
deposited into the Collection Account or the Reserve Account, as the case may
be, as and when received and shall be applied and disbursed in the same manner
and priority as all other amounts in the Collection Account. The Indenture
Trustee may trade with itself or an Affiliate in the purchase or sale of
Permitted Investments. The Servicer acknowledges that to the extent that
regulations of the Comptroller of the Currency or other applicable regulatory
agency grant the Servicer the right to receive brokerage confirmations or
security transactions as they occur, the Servicer specifically waives receipt of
such confirmations.

         SECTION 2.6. PAYMENTS AND COMPUTATIONS; FUNDING INDEMNITY FOR FAILED
PURCHASE.

                  (a) All amounts to be paid or deposited by the Sellers, Trust
Depositor, Servicer or any other applicable payor referred to hereunder shall be
paid or deposited in accordance with the terms hereof no later than 1:00 p.m.
(Chicago, Illinois time) on the day when due in lawful money of the United
States in immediately available funds, and if not so timely deposited, shall be
deemed to have been received on the following Business Day.

                                      -7-
<PAGE>   13

                  (b) Whenever any payment hereunder shall be stated to be due
on a day other than a Business Day, such payment shall be made on the next
succeeding Business Day, and such extension of time shall in such case be
included in the computation of payment of interest, interest on interest or any
fee payable hereunder, as the case may be.

                  (c) If any Purchase requested by the Trust Depositor pursuant
to Section 2.2 is not for any reason whatsoever made or effectuated, as the case
may be, on the date specified therefor, the Trust Depositor and Bluegreen,
jointly and severally, shall be obligated to indemnify the Noteholders against
any loss, cost or expense actually incurred by any Noteholder, including,
without limitation, any out-of-pocket loss, cost or expense incurred by such
Noteholder (as reasonably determined by such Noteholder) as a result of the
liquidation or redeployment of deposits or other funds acquired by such
Noteholder to fund or maintain such Purchase, as the case may be; PROVIDED, that
no such indemnification shall be required if any Purchase is not made or
effectuated as a result of any action or inaction by any Liquidity Bank or any
Noteholder, other than a failure by such Noteholder to make an advance to allow
the Trust to make any Purchase due to a failure of any condition precedent to
such Purchase set forth herein.

         SECTION 2.7. ADDITION/SUBSTITUTION OF RECEIVABLES.

                  (a) On any day prior to the Facility Termination Date provided
it is done no more than once each Collection Period, and subject to the terms
and conditions hereof, the Trust Depositor may at its option (x) replace a
Purchased Receivable currently in the Asset Pool (a "REPLACED RECEIVABLE") with
one or more Subsequent Receivables; or (y) transfer Subsequent Receivables to
the Trust. Subject to the conditions set forth in paragraph (b) below, the Trust
Depositor if exercising such option shall sell, transfer, assign, set over and
otherwise absolutely convey to the Trust, without recourse, representation or
warranty other than as expressly provided in the Transaction Documents, (i) all
the Trust Depositor's right, title and interest in and to the Subsequent
Receivables listed on the related Subsequent List of Receivables (including,
without limitation, all Collections and rights to receive Collections with
respect thereto after the related Subsequent Cutoff Date, but excluding any
collections or rights to receive payments which were collected pursuant thereto
prior to such Subsequent Cutoff Date), and (ii) all other rights and property
interests consisting of Trust Assets related to such Subsequent Receivables (the
property in clauses (i)-(ii) above, upon such transfer, becoming part of the
Trust Assets and the Asset Pool).

                  (b) The Trust Depositor may transfer to the Trust the
Subsequent Receivables and the other property and rights related thereto
described in paragraph (a) above only upon the satisfaction of each of the
following conditions on or prior to the related Subsequent Transfer Date (and
the delivery of a related Addition Notice by the Trust Depositor shall be deemed

                                      -8-
<PAGE>   14

a representation and warranty by the Trust Depositor, that such conditions have
been or will be, as of the related Subsequent Transfer Date, satisfied):

                           (i) The Trust Depositor shall have provided the
                  Indenture Trustee and the Facility Administrator notice of its
                  intention to effect a Subsequent Transfer at least twenty (20)
                  days prior to the proposed Subsequent Transfer Date and the
                  Trust Depositor shall have provided the Indenture Trustee and
                  the Facility Administrator with an Addition Notice complying
                  with the definition thereof no later than two (2) Business
                  Days prior to the proposed Subsequent Transfer Date;

                           (ii) the Subsequent Receivable(s) being conveyed to
                  the Trust, satisfy the Subsequent Receivable Qualification
                  Conditions;

                           (iii) after giving effect to such conveyance, the
                  Subsequent Receivable Transfer Conditions shall remain
                  satisfied;

                           (iv) the Trust Depositor shall have delivered to the
                  Facility Administrator and the Indenture Trustee a duly
                  executed written assignment in favor of the Trust, in
                  substantially the form of EXHIBIT I hereto (the "SUBSEQUENT
                  TRANSFER AGREEMENT" or, in the case of Substitute Receivables,
                  substantially in the form of EXHIBIT J hereto (the "SUBSTITUTE
                  RECEIVABLES TRANSFER Agreement"), which shall include a
                  Subsequent List of Receivables listing the Subsequent
                  Receivables or Substitute Receivables;

                           (v) the Trust Depositor shall have deposited or
                  caused to be deposited in the Collection Account all
                  Collections received with respect to the Subsequent
                  Receivables after the related Subsequent Cutoff Date;

                           (vi) as of each Subsequent Transfer Date, both the
                  Sellers and the Trust Depositor were Solvent and the
                  conveyance would not have the effect of rendering either no
                  longer Solvent;

                           (vii) no selection procedures believed by the Sellers
                  or the Trust Depositor to be adverse to the interests of the
                  Trust shall have been utilized in selecting the Subsequent
                  Receivables;

                           (viii) each of the representations and warranties
                  made by the Sellers pursuant to Article III of the Sale and
                  Contribution Agreement applicable to the Subsequent
                  Receivables shall be true and correct as of the related
                  Subsequent Transfer Date, and the Sellers shall have performed
                  in all material respects all obligations to be performed by
                  them hereunder or thereunder on or prior to such Subsequent
                  Transfer Date; and

                                      -9-
<PAGE>   15

                           (ix) the Sellers shall, at their own expense, on or
                  prior to the Subsequent Transfer Date, have indicated in their
                  Computer Disk and Records that the Subsequent Receivables
                  identified on the Subsequent List of Receivables in the
                  Subsequent Transfer Agreement have been sold to the Trust
                  through the Trust Depositor pursuant to this Agreement and the
                  Sale and Contribution Agreement.

                  (c) In connection with any replacement of existing Receivables
in the Asset Pool with Subsequent Receivables effected in accordance with
Section 2.7(a), the Indenture Trustee shall, automatically and without further
action, be deemed to transfer to the Trust Depositor, free and clear of any Lien
created pursuant to this Agreement, all of the right, title and interest of the
Trust in, to and under the related Replaced Receivable (including any
Collections received with respect thereto after the related Subsequent Cutoff
Date), and the Indenture Trustee shall be deemed to represent and warrant that
it has the corporate authority and has taken all necessary corporate action to
accomplish such transfer, but without any other recourse, representation or
warranty, express or implied.

         SECTION 2.8. EXTENSION OF PURCHASE PERIOD; INCREASE IN COMMITMENT.

                  (a) The Trust Depositor may, within 180 days, but no later
than 90 days, prior to the then applicable Purchase Period Termination Date, by
written notice to the Facility Administrator, who will make written request for
the Noteholders to extend the Purchase Period for one additional period of 364
days commencing on the Purchase Period Termination Date then in effect. The
Facility Administrator will promptly notify the Noteholders of such request. The
Noteholders shall make a determination, in their sole discretion and after a
full credit review, not less than 30 days prior to the then applicable Purchase
Period Termination Date as to whether or not they will agree to extend the
Purchase Period Termination Date; PROVIDED, HOWEVER, that the failure of the
Noteholders to make a timely response to the Trust Depositor's request for
extension of the Purchase Period Termination Date shall be deemed to constitute
a refusal by the Noteholders to extend the Purchase Period Termination Date. The
Purchase Period Termination Date shall only be extended upon the written consent
of all of the Noteholders.

                  (b) At any time after the Closing Date, the Trust Depositor
may, by written notice to the Facility Administrator (who will promptly forward
such notice to the Noteholders) at least ninety (90) days prior to the Purchase
Period Termination Date, request an increase in the Note Purchase Limit;
PROVIDED that any such increase must be in a minimum amount of U.S. $50,000,000.
The unanimous consent of the Noteholders, in their sole discretion, may approve
such request for an increase in the Note Purchase Limit, which increase shall
become effective only upon receipt by the Trust Depositor of written
confirmation of the Noteholders' consent to such increase, which specifies the
Note Purchase Limit as so increased.

         SECTION 2.9. ACCEPTANCE BY TRUST. On the Closing Date, if the
conditions set forth in Article Four have been satisfied, the Trust shall

                                      -10-
<PAGE>   16

execute and issue, and the Indenture Trustee shall authenticate and deliver to,
or upon the order of, the Trust Depositor, the Notes secured by the Collateral.

         SECTION 2.10. MONTHLY DISTRIBUTIONS. Each Noteholder as of the related
Record Date shall be paid on the next succeeding Payment Date by check mailed to
such Noteholder at the address for such Noteholder appearing on the Note
Register or by wire transfer if such Noteholder provides written instructions to
the Paying Agent at least ten days prior to such Payment Date.

         SECTION 2.11. DISTRIBUTIONS.

                  (a) On each Payment Date (other than after the occurrence and
during the continuance of an Event of Default or after a Termination Event in
which event Section 2.11(b) shall apply), the Servicer will allocate Available
Amounts and instruct the Indenture Trustee to make payments from the Collection
Account in the following order of priority:

                           (i) pro rata to the extent of Available Amounts, to
                  the Indenture Trustee, the Indenture Trustee Fee including any
                  unpaid Indenture Trustee Fees with respect to one or more
                  prior Collection Periods; to the Custodian, the Custodian Fee
                  including any unpaid Custodian Fees with respect to one or
                  more prior Collection Periods; to the Lockbox Bank, the
                  Lockbox Bank Fee including any unpaid Lockbox Bank Fees with
                  respect to one or more prior Collection Periods; to the Owner
                  Trustee, the Owner Trustee Fee including any unpaid Owner
                  Trustee Fees with respect to one or more prior Collection
                  Periods;

                           (ii) to the Back-Up Servicer, the Back-Up Servicing
                  Fee, including any unpaid Back-Up Servicing Fee with respect
                  to one or more prior Collection Periods;

                           (iii) to the Servicer, if the Servicer is not
                  Bluegreen or an Affiliate of Bluegreen, the Servicing Fee,
                  including any unpaid Servicing Fee with respect to one or more
                  prior Collection Periods;

                           (iv) to the Noteholders in accordance with their
                  applicable Note Percentage with respect to Receivables which
                  are not Aruba Receivables, the Minimum Usage Fee;

                           (v) to the Facility Administrator, the Facility
                  Administrator Fee, including any unpaid Facility Administrator
                  Fee with respect to one or more prior Collection Periods;

                                      -11-
<PAGE>   17

                           (vi) FIRST, to any Predecessor Servicer and SECOND,
                  to the Servicer, as applicable, any Unreimbursed Servicer
                  Advances (which reimbursement shall be applicable to any
                  Unreimbursed Servicer Advances previously made by any
                  Predecessor Servicer);

                           (vii) FIRST, to any Predecessor Servicer and SECOND,
                  to the Servicer, as applicable, any Protective Advances to the
                  extent not previously reimbursed;

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

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

                           (x) to the Class A Noteholders, the Class A Principal
                  Distributable Amount;

                           (xi) to the Class B Noteholders, the Class B
                  Principal Distributable Amount;

                           (xii) to the Class A Noteholders, costs relating to a
                  Class A Increased Costs Event, and to the Class B Noteholders,
                  costs relating to a Class B Increased Costs Event, pro rata;

                           (xiii) to the Servicer, if the Servicer is Bluegreen
                  or an Affiliate of Bluegreen, the Servicing Fee, including any
                  unpaid Servicing Fee with respect to one or more prior
                  Collection Periods;

                           (xiv) if Bluegreen or an Affiliate thereof is the
                  Servicer, to the Servicer, but only to the extent the Servicer
                  Purchase Option has been declined by the Servicer, any accrued
                  and unpaid Remarketing Fees;

                           (xv) to the Reserve Account, the amount necessary to
                  increase the amount in the Reserve Account to the Reserve
                  Account Required Amount; and

                           (xvi) any remaining amounts to the Trust Depositor.

                  (b) On each Payment Date after the occurrence and during the
continuance of an Event of Default or after a Termination Event, the Servicer

                                      -12-
<PAGE>   18

will allocate Available Amounts and instruct the Indenture Trustee to make
payments from the Collection Account in the following order of priority:

                  (i) pro rata to the extent of Available Amounts, to the
         Indenture Trustee, the Indenture Trustee Fee including any unpaid
         Indenture Trustee Fees with respect to one or more prior Collection
         Periods; to the Custodian, the Custodian Fee including any unpaid
         Custodian Fees with respect to one or more prior Collection Periods; to
         the Lockbox Bank, the Lockbox Bank Fee including any unpaid Lockbox
         Bank Fees with respect to one or more prior Collection Periods; to the
         Owner Trustee, the Owner Trustee Fee including any unpaid Owner Trustee
         Fees with respect to one or more prior Collection Periods;

                  (ii) to the Back-Up Servicer, the Back-Up Servicing Fee,
         including any unpaid Back-Up Servicing Fee with respect to one or more
         prior Collection Periods;

                  (iii) to the Servicer, if the Servicer is not Bluegreen or an
         Affiliate of Bluegreen, the Servicing Fee, including any unpaid
         Servicing Fee with respect to one or more prior Collection Periods;

                  (iv) to the Noteholders in accordance with their applicable
         Note Percentage with respect to Receivables which are not Aruba
         Receivables, the Minimum Usage Fee;

                  (v) to the Facility Administrator, the Facility Administrator
         Fee, including any unpaid Facility Administrator Fee with respect to
         one or more prior Collection Periods;

                  (vi) FIRST, to any Predecessor Servicer and SECOND, to the
         Servicer, as applicable, any Unreimbursed Servicer Advances (which
         reimbursement shall be applicable to any Unreimbursed Servicer Advances
         previously made by any Predecessor Servicer);

                  (vii) FIRST, to any Predecessor Servicer and SECOND, to the
         Servicer, as applicable, any Protective Advances to the extent not
         previously reimbursed;

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

                                      -13-
<PAGE>   19

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

                  (x) to the Class A Noteholders, the Class A Principal
         Distributable Amount;

                  (xi) to the Class B Noteholders, the Class B Principal
         Distributable Amount;

                  (xii) to the Servicer, if the Servicer is Bluegreen or an
         Affiliate of Bluegreen, the Servicing Fee, including any unpaid
         Servicing Fee with respect to one or more prior Collection Periods;

                  (xiii) if Bluegreen or an Affiliate thereof is the Servicer,
         to the Servicer, but only to the extent the Servicer Purchase Option
         has been declined by the Servicer, any accrued and unpaid Remarketing
         Fees;

                  (xiv) to the Class A Noteholders, any remaining amounts until
         such time as the Class A Notes are paid in full (including amounts in
         respect of a Class A Increased Costs Event);

                  (xv) to the Class B Noteholders, any remaining amounts until
         such time as the Class B Notes are paid in full (including amounts in
         respect of a Class B Increased Costs Event); and

                  (xvi) any remaining amounts to the Trust Depositor.

         No recourse may be had to Bluegreen, the Issuer, Trust Depositor,
Indenture Trustee, Club Trustee, Servicer, Back-Up Servicer or any of their
respective Affiliates in the event that amounts distributed under this SECTION
2.11 are insufficient for payment of any amounts due under SECTION 2.11.

                                      -14-
<PAGE>   20

                                 ARTICLE THREE

                            SERVICING OF RECEIVABLES

         SECTION 3.1. RESPONSIBILITY FOR RECEIVABLE ADMINISTRATION. The Servicer
is hereby appointed the servicer hereunder until such time as any Service
Transfer may be effected under Section 8.2. The Servicer will have the sole
right and obligation to manage, administer, service and make collections on the
Receivables and the Trust Assets and perform or cause to be performed all
contractual and customary undertakings of the holder of the Receivables to the
Obligor.

         SECTION 3.2. STANDARD OF CARE. In managing, administering, servicing
and making collections on the Receivables and the related Trust Assets pursuant
to this Agreement, the Servicer will exercise that degree of skill and care
consistent with the skill and care that the Servicer exercises with respect to
similar contracts serviced by the Servicer, and, in any event no less degree of
skill and care than would be exercised by a prudent servicer of timeshare
receivables. The Servicer shall at all times act in good faith and in the best
interests of the Trust, with respect to the Trust Assets and the proceeds
thereof, and use commercially reasonable efforts and exercise sound business
judgment in performing its duties under this Agreement.

         SECTION 3.3. FILING. On or prior to the Closing Date, the Servicer
shall cause the UCC financing statement(s) to be filed and from time to time the
Servicer shall take and cause to be taken such actions and execute such
documents as are necessary or desirable or as the Owner Trustee or Indenture
Trustee may reasonably request to perfect and protect the Trust's first priority
perfected interest in the Trust Assets (subject to Permitted Liens) against all
other persons, including, without limitation, the filing of financing
statements, amendments thereto and continuation statements, the execution of
transfer instruments and the making of notations on or taking possession of all
records or documents of title.

         SECTION 3.4. RECORDS. The Servicer shall, during the period it is
servicer hereunder, maintain such books of account and other records as will
enable the Owner Trustee and the Indenture Trustee to determine the payment
status of each Receivable.

         SECTION 3.5. INSPECTION. (a) At all times during the term hereof, the
Servicer shall afford the Facility Administrator and the Indenture Trustee and
their respective authorized agents reasonable access during normal business
hours to the Servicer's records relating to the Trust Assets and will cause its
personnel to assist in any examination of such records by the Facility
Administrator or the Indenture Trustee, or such authorized agents and allow
copies of the same to be made. The examination referred to in this Section will
be conducted in a manner which does not unreasonably interfere with the
Servicer's normal operations or customer or employee relations. Without
otherwise limiting the scope of the examination the Facility Administrator or

                                      -15-
<PAGE>   21

the Indenture Trustee or their respective authorized agents may, using generally
accepted audit procedures, verify the status of each Receivable and review the
Computer Disk and records relating thereto for conformity to Monthly Reports
prepared pursuant to Section 9.4 and compliance with the standards represented
to exist as to each Receivable in this Agreement.

         (b) At all times during the term hereof, the Servicer shall keep
available a copy of the List of Receivables at its principal executive office
for inspection by the Facility Administrator and the Noteholders.

                                  ARTICLE FOUR

                             CONDITIONS OF PURCHASES

         SECTION 4.1. CONDITIONS PRECEDENT TO INITIAL PURCHASE.

         The Initial Purchase hereunder is subject to the condition precedent
that the Facility Administrator shall have received on or before the date of
such purchase the items listed in SCHEDULE I, each (unless otherwise indicated)
dated such date, in form and substance reasonably satisfactory to the Facility
Administrator.

         SECTION 4.2. CONDITIONS PRECEDENT TO ALL PURCHASES.

         The Initial Purchase and each Incremental Purchase from the Trust
Depositor by the Trust shall be subject to the further conditions precedent
that:

                  (a) the Facility Administrator, the Indenture Trustee and the
Custodian shall have received on or before the date of such Purchase the items
listed in EXHIBIT B in form and substance reasonably satisfactory to the
Facility Administrator;

                  (b) the Servicer shall have delivered to the Facility
Administrator (A) with respect to the Initial Purchase, a completed Asset Report
dated within five (5) Business Days prior to the date of such Purchase and
containing such additional information as may be reasonably requested by the
Facility Administrator, (B) with respect to Incremental Purchases, a Subsequent
List of Receivables relating to such Incremental Purchase, and (C) executed
Assignments (under both the Sale and Contribution Agreement and this Agreement)
relating thereto; and the Receivables File with respect to such Asset Pool
Portion being purchased shall have been delivered into the custody of the
Custodian (for the benefit of the Trust) (or arrangements for custody thereof
otherwise satisfactory to the Trust shall have been implemented);

                  (c) all actions or additional actions necessary, in the
reasonable judgment of the Facility Administrator, to obtain an absolute
ownership interest in favor of the Trust in the Asset Pool Portion being
purchased shall have been taken;

                                      -16-
<PAGE>   22

                  (d) on the date of such Purchase, the following statements
shall be true and the Trust Depositor by accepting the Cash Purchase Price of
such Purchase shall be deemed to have certified that:

                           (i) the representations and warranties contained in
                  Sections 5.1 and 5.2(a) and, solely with respect to the
                  Receivables subject to such Purchase, Section 5.2(b) are true
                  and correct on and as of such day as though made on and as of
                  such date,

                           (ii) no event has occurred and is continuing, or
                  would result from such Purchase which constitutes a Servicer
                  Event of Termination, Termination Event or an Event of
                  Default,

                           (iii) on and as of such day the Outstanding Amount of
                  the Notes will not exceed Availability or the Note Purchase
                  Limit, and

                           (iv) on and as of such day, the Trust Depositor and
                  the Servicer each has performed in all material respects all
                  of the agreements contained in this Agreement and the other
                  Transaction Documents to be performed by such Person at or
                  prior to such day;

                  (e) no law, rule or regulation shall prohibit, and no order,
judgment or decree of any federal, state or local court or government body,
agency or instrumentality shall prohibit or enjoin any of the activities
contemplated by the Transaction Documents;

                  (f) the Custodian shall have received an original
note/instrument and related allonge with respect to each such Receivable (other
than with respect to an Aruba Receivable); and

                  (g) the Facility Administrator shall have received an executed
Interest Rate Cap Agreement meeting the requirements of SECTION 6.1 hereof.

                  (h) the Facility Administrator shall have received such other
approvals, opinions or documents as the Facility Administrator may reasonably
request.

                                  ARTICLE FIVE

                         REPRESENTATIONS AND WARRANTIES

         Each Seller under the Sale and Contribution Agreement has made, and
upon execution of each Subsequent Purchase Agreement is deemed to remake, each
of the representations and warranties set forth therein and has consented to the
assignment by the Trust Depositor to the Trust of the Trust Depositor's rights
with respect thereto. Such representations speak as of the execution and

                                      -17-
<PAGE>   23

delivery of the Sale and Contribution Agreement and this Agreement and as of the
Closing Date in the case of the initial Receivables, and as of the applicable
Subsequent Transfer Date in the case of the Subsequent Receivables or Substitute
Receivables, but shall survive the sale, transfer and assignment of the
Receivables to the Trust. Pursuant to Section 2.1 of this Agreement, the Trust
Depositor has sold, assigned, transferred and conveyed to the Trust as part of
the Trust Assets its rights under the Sale and Contribution Agreement, including
without limitation, its rights with respect to the representations and
warranties of the Sellers therein, together with all rights of the Trust
Depositor with respect to any breach thereof including any right to require the
Sellers to repurchase any Receivables in accordance with the Sale and
Contribution Agreement. It is understood and agreed that the representations and
warranties set forth or referred to in this Section shall survive delivery of
the Receivables Files to the Custodian.

         The Trust Depositor hereby represents and warrants to the Owner Trustee
and the Indenture Trustee that it has entered into the Sale and Contribution
Agreement with the Sellers, that each Seller has made the representations and
warranties in the Sale and Contribution Agreement as set forth therein, that
such representations and warranties run to and are for the benefit of the Trust
Depositor, the Owner Trustee, the Facility Administrator, the Indenture Trustee
and the Noteholders, and that pursuant to Section 2.1 of this Agreement the
Trust Depositor has transferred and assigned to the Trust all rights of the
Trust Depositor to cause the Sellers to repurchase Receivables in the event of a
breach of such representations and warranties in accordance with and subject to
the terms of the Sale and Contribution Agreement.

         SECTION 5.1. REPRESENTATIONS AND WARRANTIES OF THE TRUST DEPOSITOR.

         The Trust Depositor represents and warrants, as of the Closing Date,
each Purchase Date and each Subsequent Transfer Date, as follows:

                  (a) ORGANIZATION AND GOOD STANDING. The Trust Depositor is a
corporation duly organized and validly existing in good standing under the laws
of the State of Delaware, and has full corporate power, authority and legal
right to own its properties and conduct its business as such properties are
presently owned and such business is presently conducted, and to execute,
deliver and perform its obligations under this Agreement and each other
Transaction Document to which it is a party.

                  (b) DUE QUALIFICATION. The Trust Depositor is duly qualified
to do business and is in good standing as a foreign corporation (or is exempt
from such requirements), and has obtained all necessary licenses and approvals,
in each jurisdiction in which failure to so qualify or to obtain such licenses
and approvals would have a material adverse effect on its ability to perform its
obligations hereunder.

                  (c) DUE AUTHORIZATION. The execution and delivery of this
Agreement and each other Transaction Document to which it is a party, and the
consummation of the transactions provided for herein and therein have been duly

                                      -18-
<PAGE>   24

authorized by the Trust Depositor by all necessary corporate action on the part
of the Trust Depositor.

                  (d) NO CONFLICT. The execution and delivery of this Agreement
and each other Transaction Document to which it is a party, the performance of
the transactions contemplated hereby and thereby and the fulfillment of the
terms hereof and thereof will not conflict with, result in any breach of any of
the material terms and provisions of, or constitute (with or without notice or
lapse of time or both) a material default under, any material indenture,
receivable, agreement, mortgage, deed of trust, or other instrument to which the
Trust Depositor is a party (or by which it or any of its property is bound).

                  (e) NO VIOLATION. The execution and delivery of this Agreement
and each other Transaction Document to which it is a party, the performance of
the transactions contemplated hereby and thereby and the fulfillment of the
terms hereof and thereof (including, without limitation, the sale of Trust
Assets by the Trust Depositor or remittance of Collections in accordance with
the provisions of this Agreement) will not conflict with or violate, in any
material respect, any Requirements of Law applicable to the Trust Depositor.

                  (f) NO PROCEEDINGS. There are no proceedings or investigations
pending or, to the best knowledge of the Trust Depositor, threatened against the
Trust Depositor, before any court, regulatory body, administrative agency, or
other tribunal or governmental instrumentality (i) asserting the invalidity of
this Agreement or any other Transaction Document, (ii) seeking to prevent the
consummation of any of the transactions contemplated by this Agreement or any
other Transaction Document or (iii) seeking any determination or ruling that
could reasonably be expected to be adversely determined, and if adversely
determined, would materially and adversely affect the performance by the Trust
Depositor of its obligations under this Agreement or any Transaction Document.

                  (g) ALL CONSENTS REQUIRED. All approvals, authorizations,
consents, orders or other actions of any Person or of any Governmental Authority
required in connection with the Trust Depositor's execution and delivery of this
Agreement and the other Transaction Documents to which it is a party, the
performance of the transactions contemplated hereby and thereby, and the
fulfillment of the terms hereof and thereof, have been obtained.

                  (h) BULK SALES. The execution, delivery and performance of
this Agreement do not require compliance with any applicable "BULK SALES" law by
the Trust Depositor.

                  (i) SOLVENCY. After giving effect to the transactions under
this Agreement, the Trust Depositor will be Solvent.

                  (j) SELECTION PROCEDURES. No selection procedures materially
adverse to the interests of the Trust were utilized by the Trust Depositor in
selecting the Receivables in the Asset Pool.

                                      -19-
<PAGE>   25

                  (k) TAXES. The Trust Depositor has filed or caused to be filed
all tax returns which, to its knowledge, are required to be filed and has paid
when due all taxes shown to be due and payable on such returns or on any
assessments made against it or any of its property and all other taxes, fees or
other charges imposed on it or any of its property by any Governmental Authority
(other than any amount of tax due the validity of which is currently being
contested in good faith by appropriate proceedings and with respect to which
reserves in accordance with generally accepted accounting principles have been
provided on the books of the Trust Depositor); no tax lien has been filed and,
to the Trust Depositor's knowledge, no claim is being asserted, with respect to
any such tax, fee or other charge.

                  (l) AGREEMENTS ENFORCEABLE. This Agreement and the other
Transaction Documents to which the Trust Depositor is a party constitute the
legal, valid and binding obligation of the Trust Depositor enforceable against
the Trust Depositor in accordance with their respective terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting creditors' rights generally
and by general principles of equity (regardless of whether such enforceability
is considered in a proceeding in equity or law).

                  (m) MARGIN REGULATION. The Trust Depositor is not engaged, nor
will it engage, principally or as one of its important activities, in the
business of extending credit for the purpose of "purchasing" or "carrying" any
Margin Stock. The Trust Depositor does not own any Margin Stock, and none of the
proceeds of any Purchase will be used, directly or indirectly, for the purpose
of purchasing or carrying any Margin Stock, for the purpose of reducing or
retiring any Indebtedness which was originally incurred to purchase or carry any
Margin Stock or for any other purpose that might cause any portion of such
proceeds to be a "purpose credit" within the meaning of Regulations T, U or X of
the Federal Reserve Board. The Trust Depositor will not take or permit to be
taken any action which might cause any Transaction Document to violate any
regulation of the Federal Reserve Board.

                  (n) NO LIENS. Each Trust Asset, together with the Receivable
related thereto, shall, immediately prior to its sale hereunder, be owned by the
Trust Depositor free and clear of any Lien (except Permitted Liens), and upon
each Purchase, the Trust shall acquire an undivided ownership interest in each
Trust Asset and in the Collections with respect thereto, free and clear of any
Lien (except Permitted Liens). No effective financing statement or other
instrument similar in effect covering any Trust Asset or the Collections with
respect thereto shall at any time be on file in any recording office except such
as may be filed in favor of the Trust relating to this Agreement, or in favor of
the Trust Depositor as assignee of the Sellers.

                  (o) NOTE PURCHASE LIMIT AND AVAILABILITY. After giving effect
to any current Purchase or conveyance of Receivables, (i) the aggregate
Outstanding Amount of all Notes does not exceed Availability or the Note
Purchase Limit and (ii) the aggregate amount of all advances made by the
Noteholders under the Note Purchase Agreements does not exceed the Note Purchase
Limit.

                                      -20-
<PAGE>   26

                  (p) REPORTS ACCURATE. No Asset Report, exhibit, financial
statement, document, book, record or report furnished or to be furnished by the
Trust Depositor pursuant to this Agreement is or will be, when considered as a
whole, inaccurate in any material respect as of the date it is or shall be dated
or (except as otherwise disclosed to the Noteholders, as the case may be, at
such time) as of the date so furnished, and no such document contains or will
contain any material misstatement of fact or omits or shall omit to state a
material fact or any fact necessary in light of the circumstances under which
made, to make the statements contained therein not misleading.

                  (q) LOCATION OF OFFICES. The principal place of business and
chief executive office of the Trust Depositor and the Seller, and the office
where the Trust Depositor and Seller keep all the Records, are located at the
addresses of the Trust Depositor and Seller, respectively, referred to in
Section 13.3 hereof (or at such other locations as to which the notice and other
requirements specified herein shall have been satisfied).

                  (r) TRADENAMES. Except as described in SCHEDULE III, neither
the Trust Depositor nor the Seller has trade names, fictitious names, assumed
names or "DOING BUSINESS AS" names or other names under which either has done or
is doing business.

                  (s) SALE AND CONTRIBUTION AGREEMENT. The Sale and Contribution
Agreement, including the other Transaction Documents contemplated thereby, is
the only agreement pursuant to which the Trust Depositor acquires ownership of
the Trust Assets. To the knowledge of the Trust Depositor, the representation
and warranties of Sellers under the Sale and Contribution Agreement are true and
correct.

                  (t) VALUE GIVEN. The Trust Depositor shall have given
reasonably equivalent value to the Sellers in consideration for the transfer to
the Trust Depositor of the Assets under the Sale and Contribution Agreement, no
such transfer shall have been made for or on account of an antecedent debt owed
by any Seller to the Trust Depositor, and no such transfer is or may be voidable
or subject to avoidance under any section of the Bankruptcy Code.

                  (u) SPECIAL PURPOSE ENTITY. The Certificate of Incorporation
of the Trust Depositor includes substantially the provisions set forth on
EXHIBIT F hereto, and each Seller has confirmed in writing to the Trust
Depositor and has covenanted in the Sale and Contribution Agreement that it will
not cause the Trust Depositor to file a voluntary petition under the Bankruptcy
Code or any other bankruptcy or insolvency laws.

                  (v) ACCOUNTING. The Trust Depositor accounts for the transfer
from the Sellers of interests in Assets and Collections under the Sale and
Contribution Agreement and will account for transfers under this Agreement as
sales of such Assets in its books, records and financial statements, in each
case consistent with GAAP and with the requirements set forth herein.

                                      -21-
<PAGE>   27

                  (w) SEPARATE ENTITY. The Trust Depositor is operated as an
entity with assets and liabilities distinct from those of the Sellers and any
Affiliates thereof (other than the Trust Depositor), and the Trust Depositor
hereby acknowledges that the Trust is entering into the transactions
contemplated by this Agreement and the other Transaction Documents in reliance
upon the Trust Depositor's identity as a separate legal entity from the Sellers
and from each such other Affiliate of the Sellers.

                  (x) INVESTMENT COMPANY AND PUBLIC UTILITY HOLDING COMPANY. The
Trust Depositor is not an "INVESTMENT company" within the meaning of and subject
to regulation under the Investment Company Act of 1940, as amended, or a
"HOLDING COMPANY" or a "SUBSIDIARY COMPANY" of a "HOLDING COMPANY," within the
meaning of the Public Utility Holding Company Act of 1935, as amended.

                  (y) ACCURACY OF REPRESENTATIONS AND WARRANTIES. Each
representation or warranty by the Trust Depositor contained herein or in any
certificate or other document furnished by the Trust Depositor pursuant hereto
or in connection herewith is when furnished true and correct in all material
respects; provided, however, the Trust and the Noteholders acknowledge that with
respect to the condition of a Receivable as an "ELIGIBLE RECEIVABLE" as of their
date of Purchase or transfer hereunder, the Trust's remedy for a breach of a
representation or warranty relating to a Receivable's status as an Eligible
Receivable is provided by and limited to Section 6.5 hereof.

                  (z) RESERVATION SYSTEM. Other than with respect to the
services contracted for by the Club Managing Entity with a third party which
rights under such contracts shall be licensed (on a non-exclusive basis) to the
Indenture Trustee for the benefit of the Noteholders, the Reservation System is
owned by the Club Managing Entity free and clear of any liens or security
interests, but subject to the provisions of the Club Management Agreement and
the Club Trust Agreement, and the Club has the right to utilize such system
under and pursuant to Club Management Agreement. The Club Management Agreement
is in full force and effect and no default on the part of the Club Trustee or
the Club Managing Entity exists thereunder. The Servicer owns 100% of the equity
capital of the Club Managing Entity.

                  (aa) CLUB TRUST AGREEMENT. The Club Trust Agreement, of which
a true and correct copy is attached hereto as EXHIBIT E, is in full force and
effect.

                  The representations and warranties set forth in this section
         shall survive the transfer of the Trust Assets to the Trust, and
         termination of the rights and obligations of the Servicer hereunder.
         Upon discovery by the Trust Depositor, the Servicer or the Trust of a
         breach of any of the foregoing representations and warranties, the
         party discovering such breach shall give prompt written notice to the
         others.

                                      -22-
<PAGE>   28

         SECTION 5.2. REPRESENTATIONS AND WARRANTIES OF TRUST DEPOSITOR RELATING
TO THE RECEIVABLES.

         The Trust Depositor hereby represents and warrants to the Trust that,
solely with respect to the Receivables then being sold or transferred as of the
Closing Date, on a later Purchase Date and as of a Subsequent Transfer Date:

                  (a) VALID SALE AND TRANSFER OF OWNERSHIP. The Trust Depositor
has good and marketable title to each Trust Asset free and clear of any Lien
(other than Permitted Liens) of any Person and is the sole owner thereof and has
full right to transfer the Trust Assets to the Trust.

                  (b) ELIGIBILITY OF RECEIVABLES. As of the initial Cutoff Date:

                           (i) the List of Receivables and the Asset Report
                  delivered in connection therewith is an accurate and complete
                  listing in all material respects of all the Receivables in and
                  to become part of the Asset Pool as of the Cutoff Date and the
                  information contained therein (including with respect to the
                  identity of such Receivables, Obligors thereon, and the
                  amounts owing thereunder) is true and correct in all material
                  respects as of the Cutoff Date,

                           (ii) each such Receivable is an Eligible Receivable,

                           (iii) each Trust Asset has been transferred to the
                  Trust free and clear of any Lien of any Person (other than
                  Permitted Liens) and in compliance, in all material respects,
                  with all Requirements of Law applicable to the Trust
                  Depositor, and

                           (iv) with respect to each Receivable, all material
                  consents, licenses, approvals or authorizations of or
                  registrations or declarations with any Governmental Authority
                  required to be obtained, effected or given by Trust Depositor
                  in connection with the transfer of such Trust Assets to the
                  Trust have been duly obtained, effected or given and are in
                  full force and effect.

         On each Incremental Purchase Date or Subsequent Transfer Date, solely
with respect to the Receivables being sold on such date, the Trust Depositor
shall be deemed to represent and warrant to the Trust that:

                  (I)      the Subsequent List of Receivables and the Asset
                           Report delivered in connection therewith is an
                           accurate and complete listing in all material
                           respects of all the Receivables then in, and as a
                           result of such Incremental Purchase or Subsequent
                           Transfer to become part of, the Asset Pool as of the
                           applicable Cutoff Date and the information contained

                                      -23-
<PAGE>   29

                           therein (including with respect to the identity of
                           such Receivables, Obligors thereon, and the amounts
                           owing thereunder) is true and correct in all material
                           respects as of the applicable Cutoff Date,

                  (II)     each Receivable transferred on such day is an
                           Eligible Receivable,

                  (III)    each Trust Asset has been transferred to the Trust
                           free and clear of any Lien of any Person (other than
                           Permitted Liens) and in compliance, in all material
                           respects, with all Requirements of Law applicable to
                           Trust Depositor or the Sellers, and

                  (IV)     with respect to each Trust Asset, all material
                           consents, licenses, approvals or authorizations of or
                           registrations or declarations with any Governmental
                           Authority required to be obtained, effected or given
                           by the Trust Depositor in connection with the
                           transfer of such Trust Asset to the Trust have been
                           duly obtained, effected or given and are in full
                           force and effect.

                  (c) NOTICE OF BREACH. The representations and warranties set
forth in this Section 5.2 shall survive the transfer of the respective Trust
Assets, or interests therein, to the Trust. Upon discovery by the Trust
Depositor, the Servicer or the Trust of a breach of any of the foregoing
representations and warranties, the party discovering such breach shall give
prompt written notice to the others.

         SECTION 5.3. REPRESENTATIONS AND WARRANTIES OF THE CLUB AND THE CLUB
TRUSTEE.

                  (a) The Bluegreen Vacation Club Trust is a trust duly
established in accordance with the Club Trust Agreement under the laws of the
State of Florida for the purpose of holding and preserving certain property for
the benefit of the beneficiaries referred to in the Club Trust Agreement. The
Club Trustee has all necessary trust and other authorizations and powers
required to carry out its obligations under the Club Trust Agreement in the
State of Florida and in all other states in which it owns Resort Interests. The
Bluegreen Vacation Club Trust is not a corporation or business trust under the
laws of the State of Florida. The Bluegreen Vacation Club Trust is not taxable
as an association, corporation or business trust under federal law or the laws
of the State of Florida.

                  (b) The Club Trustee is a corporation duly formed, validly
existing and in good standing under the laws of the State of Florida. The Club

                                      -24-
<PAGE>   30

Trustee is authorized to transact business in no other state. The Club Trustee
is not an affiliate of the Servicer and is in compliance with the requirements
of Chapter 721, Florida Statutes, that it be independent of the Servicer.

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

                  (d) A certified copy of the Club Trust Agreement has been
delivered to the Facility Administrator together with all amendments and
supplements in respect thereof.

                  (e) The Club Trustee holds all right, title and interest in
and to all of the Resort Interests related to the Receivables solely for the
benefit of the Beneficiaries referred to in, and subject in each case to the
provisions of, the Club Trust Agreement and the other documents and agreements
related thereto. Except with respect to the Mortgages, the Club Trustee has
permitted none of such Resort Interests to be made subject to any lien or
encumbrance during the time it has been a part of the trust estate under the
Club Trust Agreement.

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

                  (g) Neither the Bluegreen Vacation Club Trust nor the Club
Trustee has incurred any indebtedness for borrowed money (directly, by
guarantee, or otherwise).

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

                                      -25-
<PAGE>   31

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

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

                  (k) Bluegreen Vacation Club, Inc. is a non-stock corporation
duly formed, validly existing and in good standing under the laws of the State
of Florida.

                  (l) Upon purchase of the Receivables and related Trust Assets
hereunder, the Trust is an "Interest Holder Beneficiary" under the Club Trust
Agreement and each of the Receivables constitutes "Lien Debt", "Purchase Money
Lien Debt" and "Owner Beneficiary Obligations" under the Club Trust Agreement.

                  (m) Except as disclosed to the Facility Administrator in
writing, each Mortgage associated with a Receivable and granted by the Club
Trustee or the Obligor on the related Receivable, as applicable, has been duly
executed, delivered and recorded by or pursuant to the instructions of the Club
Trustee under the Club Trust Agreement and such Mortgage is valid and binding
and effective to create the lien and security interests it purports to create.
Each of such Mortgages was granted in connection with the financing of a sale of
a Resort Interest.

         SECTION 5.4. REPRESENTATIONS AND WARRANTIES OF THE SERVICER.

                  (a) ORGANIZATION AND GOOD STANDING. The Servicer is a
corporation duly organized, validly existing and in good standing under the laws
of the jurisdiction of its organization and has the corporate power to own its
assets and to transact the business in which it is currently engaged. The
Servicer is duly qualified to do business as a foreign corporation and is in
good standing in each jurisdiction in which the character of the business
transacted by it or properties owned or leased by it requires such qualification
and in which the failure so to qualify would have a material adverse effect on
the business, properties, assets, or condition (financial or otherwise) of the
Servicer. The Servicer is properly licensed in each jurisdiction to the extent
required by the laws of such jurisdiction to service the Trust Assets in
accordance with the terms hereof except where the failure to be so licensed
could not reasonably be expected to have a material adverse effect on the
Servicer's business or financial condition.

                                      -26-
<PAGE>   32

                  (b) AUTHORIZATION; BINDING OBLIGATIONS. The Servicer has the
power and authority to make, execute, deliver and perform this Agreement and the
other Transaction Documents to which the Servicer is a party and all of the
transactions contemplated under this Agreement and the other Transaction
Documents to which the Servicer is a party, and has taken all necessary
corporate action to authorize the execution, delivery and performance of this
Agreement and the other Transaction Documents to which the Servicer is a party.
This Agreement and the other Transaction Documents to which the Servicer is a
party constitute the legal, valid and binding obligation of the Servicer
enforceable in accordance with their terms, except as such enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting creditors' rights generally and by general principles of
equity (regardless of whether such enforceability is considered in a proceeding
in equity or law).

                  (c) NO CONSENT REQUIRED. The Servicer is not required to
obtain the consent of any other party or any consent, license, approval or
authorization from, or registration or declaration with, any governmental
authority, bureau or agency in connection with the execution, delivery,
performance, validity or enforceability of this Agreement and the other
Transaction Documents to which the Servicer is a party.

                  (d) NO VIOLATIONS. The execution, delivery and performance of
this Agreement and the other Transaction Documents to which the Servicer is a
party by the Servicer will not violate any provisions of any existing law or
regulation or any order or decree of any court or of any Federal or state
regulatory body or administrative agency having jurisdiction over the Servicer
or any of its properties or the Articles of Organization or Bylaws of the
Servicer, or constitute a material breach of any mortgage, indenture, contract
or other agreement to which the Servicer is a party or by which the Servicer or
any of the Servicer's properties may be bound, or result in the creation of or
imposition of any security interest, lien, pledge, preference, equity or
encumbrance of any kind upon any of its properties pursuant to the terms of any
such mortgage, indenture, contract or other agreement, other than this Agreement
the result of which could reasonably be expect to have a material adverse effect
on the Trust Assets or the Servicer's ability to perform its obligations under
any of the Transaction Documents..

                  (e) NO PROCEEDINGS. There are no proceedings or investigations
pending or, to the best knowledge of the Servicer, threatened against the
Servicer, before any court, regulatory body, administrative agency, or other
tribunal or governmental instrumentality (i) asserting the invalidity of this
Agreement or any other Transaction Document, (ii) seeking to prevent the
consummation of any of the transactions contemplated by this Agreement or any
other Transaction Document or (iii) seeking any determination or ruling that

                                      -27-
<PAGE>   33

could reasonably be expected to be adversely determined, and if adversely
determined, would in the opinion of the Servicer have a material adverse effect
on the business, properties, assets or condition (financial or otherwise) of the
Servicer or its obligations under this Agreement or any Transaction Document.

                  (f) MARGIN REGULATION. The Servicer is not engaged, nor will
it engage, principally or as one of its important activities, in the business of
extending credit for the purpose of "purchasing" or "carrying" any Margin Stock.
The Servicer does not own any Margin Stock, and none of the proceeds of any
Purchase will be used, directly or indirectly, for the purpose of purchasing or
carrying any Margin Stock, for the purpose of reducing or retiring any
Indebtedness which was originally incurred to purchase or carry any Margin Stock
or for any other purpose that might cause any portion of such proceeds to be a
"purpose credit" within the meaning of Regulations T, U or X of the Federal
Reserve Board. The Servicer will not take or permit to be taken any action which
might cause any Transaction Document to violate any regulation of the Federal
Reserve Board. Notwithstanding the foregoing, this Agreement shall not limit the
Servicer's (so long as Bluegreen or any Affiliate thereof is the Servicer)
ability to repurchase shares of its common stock so long as it is otherwise done
in compliance with the terms hereof.

                                  ARTICLE SIX

                                GENERAL COVENANTS

         SECTION 6.1. GENERAL COVENANTS OF THE TRUST DEPOSITOR.

         Until the date on which all Aggregate Outstandings have been
indefeasibly paid in full, the Trust Depositor hereby covenants that:

                  (a) COMPLIANCE WITH LAWS; PRESERVATION OF CORPORATE EXISTENCE.
The Trust Depositor will comply in all material respects with all Requirements
of Law applicable to the Trust Depositor, the Receivables and the Intervals and
preserve and maintain its corporate existence, rights, franchises,
qualifications and privileges except where the failure to do so could not
reasonably be expected to have a material adverse effect on the Trust Assets or
the Trust Depositor's ability to perform its obligations under the Transaction
Documents.

                  (b) SECURITY INTERESTS. Except as specifically contemplated by
this Agreement, the Trust Depositor will not sell, pledge, assign or transfer to
any other Person, or grant, create, incur, assume or suffer to exist any Lien on
any Receivable in the Asset Pool or related Interval, whether now existing or
hereafter transferred hereunder, or any interest therein, and the Trust

                                      -28-
<PAGE>   34

Depositor will not sell, pledge, assign or suffer to exist any Lien on its
interest, if any, hereunder. The Trust Depositor will immediately notify the
Trust of the existence of any such Lien on any Receivable in the Asset Pool or
related Interval; and the Trust Depositor shall defend the right, title and
interest of the Trust in, to and under the Receivables in the Asset Pool and the
related Interval, against all claims of third parties; PROVIDED, HOWEVER, that
nothing in this SECTION 6.L(B) shall prevent or be deemed to prohibit the Trust
Depositor from suffering to exist Permitted Liens upon any of the Trust Assets
or any related Interval.

                  (c) ACTIVITIES OF TRUST DEPOSITOR. The Trust Depositor shall
not engage in any business or activity of any kind, or enter into any
transaction or indenture, mortgage, instrument, agreement, receivable, lease or
other undertaking, which is not directly related to the transactions
contemplated and authorized by this Agreement, the other Transaction Documents
and its Certificate of Incorporation.

                  (d) AGREEMENTS. Except as contemplated by the Transaction
Documents, the Trust Depositor shall not amend or modify the provisions of its
Certificate of Incorporation, or issue any power of attorney except to the Trust
or the Servicer.

                  (e) SEPARATE CORPORATE EXISTENCE. The Trust Depositor shall:

                           (i) Maintain its own deposit account or accounts,
                  separate from those of any Affiliate, with commercial banking
                  institutions. Except for payments to its equity holders in the
                  form of a dividend and for payments for the Trust Assets
                  purchased from the Sellers under the Sale and Contribution
                  Agreement, the funds of the Trust Depositor will not be
                  diverted to any other Person or used other than for corporate
                  uses of the Trust Depositor.

                           (ii) Ensure that, to the extent that it shares the
                  same officers or other employees as any of its stockholders or
                  Affiliates, the salaries of and the expenses related to
                  providing benefits to such officers and other employees shall
                  be fairly allocated among such entities, and each such entity
                  shall bear its fair share of the salary and benefit costs
                  associated with all such common officers and employees.

                           (iii) Ensure that, to the extent that it and any
                  Seller (together with their respective stockholders or
                  Affiliates) jointly do business with vendors or service
                  providers or share overhead expenses, the costs incurred in so
                  doing shall be allocated fairly among such entities, and each
                  such entity shall bear its fair share of such costs. To the
                  extent that it and any Seller (together with their respective
                  stockholders or Affiliates) do business with vendors or
                  service providers when the goods and services provided are
                  partially for the benefit of any other Person, the costs
                  incurred in so doing shall be fairly allocated to or among

                                      -29-
<PAGE>   35

                  such entities for whose benefit the goods and services are
                  provided, and each such entity shall bear its fair share of
                  such costs. All material transactions between Trust Depositor
                  and any of its Affiliates shall be only on an arms' length
                  basis.

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

                           (v) Conduct its affairs strictly in accordance with
                  its Certificate of Incorporation and observe all necessary,
                  appropriate and customary corporate formalities, including,
                  but not limited to, holding all regular and special
                  stockholders' and directors' meetings appropriate to authorize
                  all corporate action, keeping separate and accurate minutes of
                  its meetings, passing all resolutions or consents necessary to
                  authorize actions taken or to be taken, and maintaining
                  accurate and separate books, records and accounts, including,
                  but not limited to, payroll and intercompany transaction
                  accounts.

                  (f) LOCATION OF TRUST DEPOSITOR, RECORDS; INSTRUMENTS. The
Trust Depositor (x) shall not move the location of its chief executive office
outside the State of Florida without 30 days' prior written notice to the
Facility Administrator and the Trustee and (y) shall not move or permit the
Servicer to move the location of the Receivable Files, other than to the
Custodian, from the locations thereof on the Initial Purchase Date, without 30
days' prior written notice to the Facility Administrator and the Trustee and (z)
will promptly take all actions required (including, but not limited to, all
filings and other acts necessary or advisable under the UCC of each relevant
jurisdiction in order to evidence the Trust's ownership interest (and back-up
grant of a first priority perfected security interest to the Trust (subject to
Permitted Liens)) in all Trust Assets in the Asset Pool. The Trust Depositor
will give the Facility Administrator and the Trustee prompt notice of a change
within the State of Florida of the location of its chief executive office.

                  (g) ACCOUNTING FOR PURCHASES. The Trust Depositor will not
account for or treat (whether in financial statements or otherwise) the
transactions contemplated hereby or by the Sale and Contribution Agreements in
any manner other than the sale of Trust Assets by the Trust Depositor to the
Trust or the sale or contribution of the Assets by the Sellers to the Trust
Depositor, as the case may be.

                  (h) ERISA MATTERS. The Trust Depositor will not (a) engage in
any prohibited transaction for which an exemption is not available or has not
previously been obtained from the United States Department of Labor; (b) permit
to exist any accumulated funding deficiency, as defined in Section 302(a) of
ERISA and Section 412(a) of the Code, or funding deficiency with respect to any
Benefit Plan other than a Multiemployer Plan; (c) fail to make any payments to a
Multiemployer Plan that the Trust Depositor may be required to make under the

                                      -30-
<PAGE>   36

agreement relating to such Multiemployer Plan or any law pertaining thereto; (d)
terminate any Benefit Plan so as to result in any liability; or (e) permit to
exist any occurrence of any reportable event described in Title IV of ERISA
which represents a material risk of a liability of the Trust Depositor under
ERISA or the Code.

                  (i) NATURE OF BUSINESS. The Trust Depositor will engage in no
business other than the purchase of Assets from the Sellers, the sale of Trust
Assets to the Trust and the other transactions permitted or contemplated by this
Agreement and the other Transaction Documents.

                  (j) SELLER ASSETS. With respect to each Asset acquired by the
Trust Depositor from the Sellers, the Trust Depositor will (i) acquire such
Asset pursuant to and in accordance with the terms of the Sale and Contribution
Agreement, (ii) take all action necessary to perfect, protect and more fully
evidence the Trust Depositor's ownership of such Asset, including, without
limitation, (A) filing and maintaining effective financing statements (Form
UCC-1) against the Sellers in all necessary or appropriate filing offices, and
filing continuation statements, amendments or assignments with respect thereto
in such filing offices, and (B) executing or causing to be executed such other
instruments or notices as may be necessary or appropriate, and (iii) take all
additional action that the Trust may reasonably request to perfect, protect and
more fully evidence the respective interests of the parties to this Agreement in
the Trust Assets.

                  (k) TRANSACTIONS WITH AFFILIATES. The Trust Depositor will not
enter into, or be a party to, any transaction with any of its Affiliates, except
(i) the transactions permitted or contemplated by this Agreement and the other
Transaction Documents, and (ii) other transactions (including, without
limitation, the lease of office space or computer hardware or software by the
Trust Depositor to or from an Affiliate) (A) in the ordinary course of business,
(B) pursuant to the reasonable requirements of the Trust Depositor's business,
and (C) upon fair and reasonable terms that are no less favorable to the Trust
Depositor than could be obtained in a comparable arms'-length transaction with a
Person not an Affiliate of the Trust Depositor. It is understood that any
compensation arrangement for officers shall be permitted under clause (ii)(A)
through (C) above if such arrangement has been expressly approved by the board
of directors of the Trust Depositor.

                  (l) INDEBTEDNESS; INVESTMENTS. The Trust Depositor will not
incur any Indebtedness other than Indebtedness arising hereunder or under the
other Transaction Documents. Except for its residual interest in the Trust, the
Trust Depositor will not make any Investments other than Permitted Investments.

                  (m) CHANGE IN THE SALE AND CONTRIBUTION AGREEMENT. The Trust
Depositor will not amend, modify, waive or terminate any terms or conditions of
the Sale and Contribution Agreement except as permitted hereby.

                  (n) AMENDMENT TO CERTIFICATE OF INCORPORATION. The Trust
Depositor will not amend, modify or otherwise make any change to its Certificate
of Incorporation to delete or otherwise nullify or circumvent the provisions set
forth on EXHIBIT F hereto.

                                      -31-
<PAGE>   37

                  (o) AUTHORIZED SIGNATORY. Any person signing a Request Notice
on behalf of Trust Depositor, as provided in EXHIBIT A hereto shall have the
requisite power and authority to sign the same on behalf of the Trust Depositor.

                  (p) RESORTS. Neither the Trust Depositor nor the Servicer
shall permit the number of Resorts within the Club to be less than 20; provided
that for purposes of this clause (p), a "Resort" shall include all phases,
subdivisions and/or developments at the same or substantially the same
geographic location.

                  (q) TERMINATION OF CLUB MANAGING ENTITY. The Servicer shall
not permit the Club Managing Entity to terminate the Club Management Agreement
without the prior written consent of the Facility Administrator, such consent
not to be unreasonably withheld or delayed.

                  (r) MERGER OR CONSOLIDATION. The Trust Depositor shall not
merge or consolidate with any other Person or sell all or substantially all of
its assets or acquire all or substantially all of the assets or capital stock or
other ownership interest of any other Person unless the Person formed by such
consolidation or into which the Trust Depositor has merged or the Person which
acquires by conveyance, transfer or lease substantially all the assets or
capital stock of the Trust Depositor as an entirety, can lawfully perform the
obligations of the Trust Depositor hereunder and executes and delivers to the
Owner Trustee and the Indenture Trustee an agreement in form and substance
reasonably satisfactory to the Owner Trustee and the Indenture Trustee which
contains an assumption by such successor entity of the due and punctual
performance and observance of each covenant and condition to be performed or
observed by the Trust Depositor under this Agreement.

Notwithstanding any other provision in this Section and any provision of law,
the Trust Depositor shall not do any of the following:

                           (i) engage in any business or activity other than as
                  set forth in or permitted by its Certificate of Incorporation;
                  or

                           (ii) without the affirmative vote of a majority of
                  the members of the Board of Directors of the Trust Depositor
                  (which must include the affirmative vote of at least one duly
                  appointed Independent director) (A) dissolve or liquidate, in
                  whole or in part, or institute proceedings to be adjudicated
                  bankrupt or insolvent, (B) consent to the institution of
                  bankruptcy or insolvency proceedings against it, (C) file a
                  petition seeking or consent to reorganization or seek to
                  obtain relief under any applicable federal or state law
                  relating to bankruptcy, (D) consent to the appointment of a
                  receiver, liquidator, assignee, trustee, sequestrator (or
                  other similar official) of the corporation or a substantial
                  part of its property, (E) make a general assignment for the
                  benefit of creditors, (F) admit in writing its inability to
                  pay its debts generally as they become due, or (G) take any
                  corporate action in furtherance of the actions set forth in

                                      -32-
<PAGE>   38

                  clauses (A) through (F) above; PROVIDED, HOWEVER, that no
                  director may be required by any shareholder of the Trust
                  Depositor to consent to the institution of bankruptcy or
                  insolvency proceedings against the Trust Depositor so long as
                  it is solvent.

                  (s) INTEREST RATE PROTECTION. On each Purchase Date, the Trust
Depositor shall enter into an Interest Rate Cap Agreement for such Asset Pool
Portion with one or more Eligible Interest Rate Cap Providers with a notional
amount calculated on a stepped-down basis agreed to by the parties thereto and
the Noteholders, providing for a strike price of 100 basis points over the
initial weighted average of the Class A Note Rate and the Class B Note Rate
relating to such Asset Pool Portion and otherwise in form and substance
satisfactory to the parties to such Interest Rate Cap Agreement and the
Noteholders.

         SECTION 6.2. GENERAL COVENANTS OF THE CLUB TRUSTEE.

         Until the date on which all Aggregate Outstandings have been
indefeasibly paid in full, the Club Trustee hereby covenants that:

                  (a) NO CONVEYANCE. The Club Trustee agrees not to convey any
Resort Interest in the Club relating to a Receivable which has been sold and
assigned to the Trust unless the Indenture Trustee shall have issued an
instruction to the Club Trustee pursuant to Section 8.07(c) of the Club Trust
Agreement in connection with its exercise of its rights as an Interest Holder
Beneficiary (as defined in the Club Trust Agreement) under Section 7.02 of the
Club Trust Agreement.

                  (b) SEPARATE CORPORATE EXISTENCE. The Club Trustee shall:

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

                           (ii) Ensure that, to the extent that it shares the
                  same officers or other employees as any of its stockholders,
                  beneficiaries or Affiliates, the salaries of and the expenses
                  related to providing benefits to such officers and other
                  employees shall be fairly allocated among such entities, and
                  each such entity shall bear its fair share of the salary and
                  benefit costs associated with all such common officers and
                  employees.

                           (iii) Ensure that, to the extent that the Club
                  Trustee and the Servicer (together with their respective
                  stockholders or Affiliates) jointly do business with vendors
                  or service providers or share overhead expenses, the costs
                  incurred in so doing shall be allocated fairly among such
                  entities, and each such entity shall bear its fair share of
                  such costs. To the extent that the Club Trustee and the
                  Servicer (together with their respective stockholders or
                  Affiliates) do business with vendors or service providers when
                  the goods and services provided are partially for the benefit

                                      -33-
<PAGE>   39

                  of any other Person, the costs incurred in so doing shall be
                  fairly allocated to or among such entities for whose benefit
                  the goods and services are provided, and each such entity
                  shall bear its fair share of such costs. All material
                  transactions between Club Trustee and any of its Affiliates
                  shall be only on an arms' length basis.

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

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

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

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

                           (i) engage in any business or activity other than as
                  set forth herein or in or as contemplated by the Club Trust
                  Agreement or its Amended and Restated Articles of
                  Incorporation, as applicable;

                           (ii) without the affirmative vote of a majority of
                  the members of the board of directors (or Persons performing
                  similar functions) of the Club Trustee (which must include the
                  affirmative vote of at least one duly appointed Independent

                                      -34-
<PAGE>   40

                  Director (as defined in the Club Trust Agreement)), (A)
                  dissolve or liquidate, in whole or in part, or institute
                  proceedings to be adjudicated bankrupt or insolvent, (B)
                  consent to the institution of bankruptcy or insolvency
                  proceedings against it, (C) file a petition seeking or consent
                  to reorganization or relief under any applicable federal or
                  state law relating to bankruptcy, (D) consent to the
                  appointment of a receiver, liquidator, assignee, trustee,
                  sequestrator (or other similar official) of the corporation or
                  a substantial part of its property, (E) make a general
                  assignment for the benefit of creditors, (F) admit in writing
                  its inability to pay its debts generally as they become due,
                  (G) terminate the Club Managing Entity as manager under the
                  Club Management Agreement or (H) take any corporate action in
                  furtherance of the actions set forth in clauses (A) through
                  (G) above; provided, however, that no director may be required
                  by any shareholder or beneficiary of the Club Trustee to
                  consent to the institution of bankruptcy or insolvency
                  proceedings against the Club Trustee so long as it is solvent;

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

                           (iv) with respect to the Club Trustee, amend or
                  otherwise modify its Amended and Restated Articles of
                  Incorporation or any definitions contained therein in a manner
                  adverse to the Indenture Trustee or any Noteholder without the
                  prior written consent of the Facility Administrator.

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

         SECTION 6.3. GENERAL COVENANTS OF THE SERVICER.

         So long as the Servicer is Bluegreen, the Servicer covenants that:

                  (a) NET WORTH. Servicer agrees to maintain a Tangible Net
Worth of Eighty Million Dollars ($80,000,000).

                  (b) INSPECTIONS AND AUDITS. Servicer shall, at such reasonable
times during normal business hours and as often as may be reasonably requested,
permit any agents or representatives of the Facility Administrator to inspect
the Resorts and Additional Resorts and any of Servicer's assets (including
financial and accounting books and records) relating thereto, to examine and
make copies of and abstracts from the records and books of account of the
Servicer or the Time Share Association (to the extent controlled by the
Servicer) or serviced under the Servicing Agreement and to discuss its affairs,

                                      -35-
<PAGE>   41

finances and accounts with any of its officers, employees or independent public
accountants. Servicer acknowledges that the Facility Administrator intends to
conduct such audits and inspections on at least an annual basis. Servicer shall
make available to the Facility Administrator all credit information in
Servicer's possession or under Servicer's control with respect to Obligors as
the Facility Administrator may reasonably request. Upon the Facility
Administrator's request, Servicer shall furnish to Facility Administrator
evidence of payment of all real estate taxes relating to the Resorts and
Additional Resorts. Servicer (to the extent Bluegreen or an Affiliate thereof is
the Servicer hereunder) shall be required to pay all reasonable fees, costs and
expenses incurred by the Facility Administrator for any and all Resorts and
Additional Resorts inspections, audits and any other diligence relating to
Servicer's finances or books or records.

                  (c) MAINTENANCE. For so long as the Servicer controls the
Resorts and Additional Resorts, the Servicer shall use commercially reasonable
best efforts to maintain the Resorts and Additional Resorts in good repair,
working order and condition (ordinary wear and tear excepted).

                  (d) MANAGEMENT CONTRACT. For so long as the Servicer controls
the Resorts and the Additional Resorts, the manager, related management contract
and master marketing and sale contract (if applicable) for each Resort shall at
all times be reasonably satisfactory to the Facility Administrator. For so long
as the Servicer controls the Time Share Association for the Resorts or
Additional Resorts, and the Servicer or an Affiliate thereof is the manager, the
related management contract and master marketing and sale contract may be
amended or modified only with the prior written consent of the Facility
Administrator, which consent shall not be unreasonably withheld or delayed.

                  (e) RELEASE AND BONDING OF LIENS. In the event any lien (other
than a Permitted Lien) attaches to any Receivable or related Trust Asset from
any Person claiming from and through the Servicer or one of its Affiliates which
materially adversely affects the Trust's interest in the Receivable, Servicer
shall, within the earlier to occur of ten (10) days after such attachment or the
respective lienholders action to foreclose on such lien, either (a) cause such
lien to be released of record, or (b) provide the Indenture Trustee with a bond
in accordance with the applicable laws of the state in which the Receivable or
related Trust Asset is located, issued by a corporate surety acceptable to the
Indenture Trustee, in an amount and in form reasonably acceptable to the
Indenture Trustee, or (c) provide the Indenture Trustee with such other security
as the Indenture Trustee may reasonably require.

                  (f) CLAIMS. Servicer shall: (a) promptly notify the Indenture
Trustee and the Facility Administrator of (i) any claim, action or proceeding
which may be reasonably expected to have a material adverse effect on the
Receivables or related Trust Assets, or any material part thereof, and (ii) any

                                      -36-
<PAGE>   42

action, suit, proceeding, order or injunction of which Servicer becomes aware
after the date hereof pending or threatened against or affecting Servicer or any
Affiliate which may be reasonably expected to have a material adverse effect on
the Trust Assets or the Servicer's ability to service the same; (b) at the
request of Trust with respect to a claim or action or proceeding which arises
from or through the Servicer or one of its Affiliates, appear in and defend, at
Servicer's expense, any such claim, action or proceeding which would have a
material adverse effect on the Trust Assets or the Servicer's ability to service
the same; and (c) comply in all respects, and shall cause all Affiliates to
comply in all respects, with the terms of any orders imposed on such Person by
any governmental authority the failure to comply with which would have a
material adverse effect on the Trust Assets or the Servicer's ability to service
the same.

                  (g) NEGATIVE PLEDGE ON RESERVATION SYSTEM. Except as
contemplated by the Transaction Documents, the Servicer shall not, and shall not
permit the Club Managing entity to, encumber, pledge or otherwise grant a lien
or security interest in and to the Reservation System (including, without
limitation, all hardware, software and data in respect thereof) and furthermore
agrees, and shall cause the Club Managing Entity, to use commercially reasonable
efforts to keep the Reservation System operational, not to dispose of the same
and to allow the Club the use of, and access to, the Reservation System in
accordance with the terms of Club Management Agreement.

                  (h) MODIFICATIONS OF RECEIVABLES. The Servicer shall not
reschedule, revise downward or defer payments on a Receivable or modify the
terms or conditions of the related contract in a manner adverse to the Trust
unless the Facility Administrator shall have consented in writing to the same.

                  (i) GENERAL. At all times during the term of this Agreement to
the extent not required to be retained by the Custodian, Servicer shall maintain
complete and accurate files and records pertaining to each Receivable and
related Trust Assets and of all business activities and operations conducted by
Servicer in connection with its performance under this Agreement. All such files
and records shall, upon the Indenture Trustee's request, be delivered to the
Indenture Trustee or its designee upon early termination of this Agreement.

                  (j) COMPLIANCE WITH COLLECTION POLICIES. The Servicer shall
comply in all material respects with the Collection Policies in effect on the
Closing Date (or as amended from time to time with the consent of the Facility
Administrator) and with the terms of the Receivables.

                  (k) NOTICES TO OBLIGORS. Promptly after the Closing Date and,
in any event, not later than five (5) Business Days thereafter, the Servicer
will direct all Obligors of Receivables, and shall instruct all future Obligors
of such Receivables, to remit all payments with respect to such Receivables only

                                      -37-
<PAGE>   43

(i) by check, money order, phone payment, or Western Union Quick Collect mailed
to, or generated by, an office of the Servicer, (ii) by check, wire transfer,
money order or moneygram to the Lockbox or Lockbox Account or (iii) by
pre-authorized checking or credit card payment for deposit into the Lockbox
Account.

                  (l) COMPLIANCE WITH AGREEMENTS AND APPLICABLE LAWS. The
Servicer shall perform each of its obligations under this Agreement and the
other Transaction Documents and comply with all federal, state and local laws
and regulations applicable to it and the Receivables, including those relating
to truth in lending, time share, real estate, retail installment sales, fair
credit billing, fair credit reporting, equal credit opportunity, fair debt
collection practices, privacy, licensing, taxation, ERISA and labor matters and
Environmental Laws, except to the extent that the failure to so comply,
individually or in the aggregate, could not reasonably be expected to have a
material adverse effect on its ability to perform its obligations hereunder or
on its business, properties, assets, or condition (financial or otherwise) of
the Servicer and its Subsidiaries taken as a whole.

         SECTION 6.4. RELEASE OF INTEREST IN INTERVAL.

         At the same time as (i) any Receivable becomes a Prepaid Receivable and
in connection therewith the Interval related to such Prepaid Receivable is sold,
(ii) any Receivable matures, or (iii) the Trust Depositor through the Servicer,
substitutes or replaces any Receivable as contemplated in SECTIONS 2.7 and 6.5
hereof, the Indenture Trustee will release its interest in the Interval relating
to such Prepaid Receivable or such Replaced Interval, as the case may be;
PROVIDED, that such release will not constitute a release of the respective
interests of Indenture Trustee and Trust Depositor in the proceeds of such sale.
In connection with any of the events described in the preceding sentence, the
Indenture Trustee will execute and deliver (at the expense of the Trust
Depositor) to the Servicer any assignments, bills of sale, termination
statements and any other releases and instruments as the Servicer may reasonably
request in order to effect such release and transfer, and the Indenture Trustee
shall be deemed to have transferred to the Obligor all of the Indenture
Trustee's right, title and interest in such Interval and shall be deemed to have
represented to the Obligor that the Indenture Trustee has the authority to so
transfer, has completed all corporate action required by it to effect such
transfer and has transferred such interest free and clear of any interest
created by the Indenture Trustee hereunder or under the other Transaction
Documents, but without any other recourse, representation or warranty, express
or implied. Nothing in this Section shall diminish the Servicer's obligations
pursuant to SECTION 2.11 of this Agreement with respect to the proceeds of any
such sale.

         SECTION 6.5. RETRANSFER OF INELIGIBLE RECEIVABLES.

         Upon discovery by the Servicer, Trust Depositor, the Indenture Trustee
or Trust of a breach when made of a representation or warranty of the Trust
Depositor set forth in Section 5.2(b) with respect to a Receivable in the Asset
Pool which, in the Facility Administrator's reasonable determination, materially
adversely affects the Receivable or with respect to Receivables for which, in
the Facility Administrator's reasonable determination, the breach of a
representation or warranty in the aggregate materially adversely affects the

                                      -38-
<PAGE>   44

Indenture Trustee or the Noteholders (an "INELIGIBLE RECEIVABLE"), the party
discovering such breach shall give prompt written notice to the other parties.
Not later than the Determination Date which is at most thirty (30) days after
the earlier to occur of the discovery of such breach by the Trust Depositor or
receipt by the Trust Depositor of written notice of such breach given by the
Trust, Indenture Trustee or the Servicer, the Trust Depositor shall, at its
option, either cure the breach within the above described time period or
repurchase such Ineligible Receivable and the Indenture Trustee shall convey,
free and clear of any Lien created by pursuant to this Agreement, all of its
right, title and interest in such Ineligible Receivable, and the Indenture
Trustee shall, in connection with such conveyance and without further action, be
deemed to represent and warrant that it has the corporate authority and has
taken all necessary corporate action to accomplish such conveyance, but without
any other recourse, representation or warranty, express or implied. In any of
the foregoing instances, the Trust Depositor shall accept a retransfer of each
such Ineligible Receivable, and there shall be deducted from the Receivable
Balance of the Asset Pool, the Receivable Balance of each such Ineligible
Receivable. On and after the date of such retransfer, each Ineligible Receivable
so retransferred shall not be included in the Asset Pool. In consideration of
such retransfer the Trust Depositor shall, on the date of retransfer of such
Ineligible Receivable, make or cause to be made a deposit in the Collection
Account (for allocation pursuant to SECTIONS 2.11(A) and (B), as applicable) in
immediately available funds in an amount equal to the Transfer Deposit Amount
for such Ineligible Receivable. Upon each retransfer to the Trust Depositor of
such Ineligible Receivable in accordance herewith, the Trust shall automatically
and without further action be deemed to transfer, assign and set-over to the
Trust Depositor, free and clear of any Lien created pursuant to this Agreement,
all the right, title and interest of the Trust in, to and under such Receivable
and all monies due or to become due with respect thereto, the related Interval
and all proceeds of such Receivable, Recoveries and Insurance Proceeds relating
thereto, all rights to security for any such Receivable, the deed (if any)
relating to any such Receivable and all proceeds and products of the foregoing,
and the Trust shall, in connection with such transfer, assignment and set-over
and without further action, be deemed to represent and warrant that it has the
corporate authority and has taken all necessary corporate action to accomplish
such transfer, assignment and set-over, but without any other recourse,
representation or warranty, express or implied. The Indenture Trustee shall, at
the sole expense of the Servicer, execute such documents and instruments of
transfer as may be prepared by the Servicer on behalf of the Trust Depositor and
take such other actions as shall reasonably be requested by the Trust Depositor
to effect the transfer of such Ineligible Receivable pursuant to this Section
6.5.

         Notwithstanding the foregoing, in lieu of repurchasing an Ineligible
Receivable as described above, the Trust Depositor may, subject to the
conditions and requirements of SECTION 2.7 of this Agreement (other than the
12.5% limitation set forth in the definition of Subsequent Receivable Transfer
Condition), effect a replacement of such Receivable with a Substitute
Receivable, such replacement to be effected not later than the date that a
repurchase would have been required hereunder. Upon any such substitution, the
Ineligible Receivable and Trust Assets specifically relating thereto will be
retransferred to the Trust Depositor as provided above.

                                      -39-
<PAGE>   45

         Notwithstanding anything contained herein or in any Transaction
Document to the contrary, the obligation of the Trust Depositor to repurchase
and accept retransfer of any Ineligible Receivable (or in the alternative,
effect a valid replacement of such Receivable as described above) shall
constitute the sole remedy respecting any breach of the representations and
warranties set forth in SECTION 5.2 with respect to such Receivable available to
the Indenture Trustee, the Noteholders, the Facility Administrator, any other
party hereto or any other Person and is not intended to and does not constitute
"credit recourse" to the Trust Depositor. Notwithstanding anything to the
contrary contained herein, in the event the Trust Depositor, prior to the
applicable Determination Date, remedies the condition which rendered the
Receivable an "INELIGIBLE RECEIVABLE" during the previously described 30 day
period, the Trust Depositor is not obligated to repurchase or replace such
Receivable. It is understood and agreed by the parties hereto that the payment
obligations of the Obligors' in respect of the Receivables purchased hereunder
shall not be the Trust Depositor's obligation, except with respect to Servicer
Advances and remedies associated with breaches of representations and warranties
to the extent permitted hereby.

                                 ARTICLE SEVEN

                         SUBJECT TO CLUB TRUST AGREEMENT

SECTION 7.1. RIGHTS SUBJECT TO CLUB TRUST AGREEMENT. Notwithstanding anything to
the contrary set forth herein or in any other Transaction Documents, all
references to the rights of the Trust and the Indenture Trustee with respect to
Receivables shall be subject at all times to the provisions of the Club Trust
Agreement and the other agreements executed by the Beneficiaries in connection
therewith.

                                 ARTICLE EIGHT

                          SERVICER TERMINATION EVENTS

         SECTION 8.1. SERVICER TERMINATION EVENTS.

         Each of the following events shall constitute a "SERVICER TERMINATION
EVENT":

                  (a) Any failure by the Servicer to make any payment or deposit
required to be made by the Servicer hereunder, under the Lockbox Agreement or
any other Transaction Document and the continuance of such failure for a period
of three Business Days after the date on which such payment or deposit was due
and not made;

                  (b) Failure on the Servicer's part to observe or perform in
any material respect any covenant or agreement in this Agreement, the Lockbox
Agreement or any other Transaction Document (other than a covenant or agreement,
the breach of which is specifically addressed elsewhere in this Section) which

                                      -40-
<PAGE>   46

continues unremedied for 30 days after the date on which notice of such failure
is delivered to Servicer or Servicer otherwise has actual knowledge of such
fact;

                  (c) Any assignment by the Servicer of its duties or rights
hereunder, under the Lockbox Agreement, or any other Transaction Document,
except as specifically permitted hereunder or thereunder, or any attempt to make
such an assignment;

                  (d) An involuntary case under any applicable bankruptcy,
insolvency or other similar law shall have been commenced in respect of the
Servicer and shall not have been dismissed within 30 days, or a court having
jurisdiction in the premises shall have entered a decree or order for relief in
respect of the Servicer in an involuntary case under any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect, or appointing a
receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar
official) of the Servicer or for any substantial liquidation or winding up of
its affairs;

                  (e) The Servicer shall have commenced a voluntary case under
any applicable bankruptcy, insolvency or other similar law now or hereafter in
effect, or shall have consented to the entry of an order for relief in an
involuntary case under any such law, or shall have consented to the appointment
of or taking possession by a receiver, liquidator, assignee, trustee, custodian
or sequestrator (or other similar official) of the Servicer or for any
substantial part of its property, or shall have made any general assignment for
the benefit of its creditors, or shall have failed to, or admitted in writing
its inability to, pay its debts as they become due, or shall have taken any
corporate action in furtherance of the foregoing;

                  (f) Any failure by the Servicer to deliver the reports
described in Article Nine of this Agreement which remains uncured for three
Business Days after the date on which such failure commences; PROVIDED, HOWEVER
that the period within which Servicer shall deliver such reports shall be
extended to such longer period as is appropriate in the event of a Force Majeure
Delay;

                  (g) Any representation, warranty or statement of the Servicer
made in this Agreement or any certificate, report or other writing delivered
pursuant hereto shall prove to be incorrect in any material respect as of the
time when the same shall have been made and, within 30 days after written notice
thereof shall have been given to the Servicer by the Trust or Servicer otherwise
has actual knowledge thereof, the circumstances or condition in respect of which
such representation, warranty or statement was incorrect shall not have been
eliminated or otherwise cured;

                  (h) A default or breach shall occur under any other agreement,
document or instrument to which the Servicer is a party or by which the Servicer
or its property is bound that is not cured within any applicable grace period
therefor, and such default or breach (i) involves the failure to make any
payment when due in respect of any Indebtedness of the Servicer in excess of

                                      -41-
<PAGE>   47

five percent (5%) of the Servicer's Tangible Net Worth, or (ii) causes, or
permits any holder of such Indebtedness or a trustee or agent to cause,
Indebtedness or a portion thereof in excess of five percent (5%) of the
Servicer's Tangible Net Worth to become due prior to its stated maturity or
prior to its regularly scheduled dates of payment, regardless of whether such
default is waived, or such right is exercised, by such holder, trustee or agent;

                  (i) As of any Determination Date, the Trailing Three Month (31
to 59), (60 to 89) and (90 to 119) Day Delinquency Rates exceed 8.0%, 6.0% and
4.0%, respectively; provided, however, if such Determination Date is after the
Purchase Period Termination Date and the Asset Pool aggregate Receivable Balance
as of such Determination Date is less than 7.50% of the aggregate of the
original Receivables Balances of all Receivables at any time in the Asset Pool,
such test shall no longer be applicable; or

                  (j) As of any Determination Date, the Trailing Three Month
Gross Recoveries shall be less than 80%.

In the event that any party hereto becomes aware of a Servicer Termination Event
(or an event which with the passage of time or giving of notice would become a
Servicer Termination Event) such party shall promptly notify the other parties
hereto. Additionally, upon the occurrence of a Servicer Termination Event and
the Facility Administrator's giving of notice of a Service Transfer pursuant to
Section 8.2(a) hereof, such Servicer Termination Event shall be irrevocably
deemed to have "OCCURRED AND BE CONTINUING" unless otherwise waived by more than
50% of the outstanding balance of each Class of Notes; PROVIDED, FURTHER, that
so long as Bluegreen or an Affiliate of Bluegreen is not the Servicer, clauses
(h), (i) and (j) of this Section 8.1 shall not constitute a Servicer Termination
Event.

         SECTION 8.2. SERVICE TRANSFER.

                  (a) If a Servicer Termination Event has occurred and is
continuing, the Facility Administrator may, and at the direction of the
Noteholders shall, by written notice delivered to the Servicer, terminate all
(but not less than all) of the Servicer's management, administrative, servicing,
custodial and collection functions (such termination being herein called a
"SERVICE TRANSFER" and such terminated Servicer, being called a "PREDECESSOR
SERVICER"); PROVIDED that notwithstanding anything in this Agreement to the
contrary, in the event the Back-up Servicer shall become the Servicer hereunder,
at any time thereafter the Back-up Servicer may resign from its duties as
Servicer upon ninety (90) days written notice to the Indenture Trustee and the
Facility Administrator.

                  (b) Upon receipt of the notice required by Section 8.2(a) (or,
if later, on a date designated therein), all rights, benefits, fees,
indemnities, authority and power of the Servicer under this Agreement, whether
with respect to the Trust Assets or otherwise shall pass to and be vested in the
Back-up Servicer (the "SUCCESSOR SERVICER") pursuant to and under this Section
8.2; and, without limitation, the Successor Servicer is authorized and empowered
to execute and deliver on behalf of the Servicer, as attorney-in-fact or
otherwise, any and all documents and other instruments, and to do any and all
acts or things necessary or appropriate to effect the purposes of such notice of

                                      -42-
<PAGE>   48

termination. In the event that the Back-up Servicer is unable to act as the
Successor Servicer, subject to Section 3.7(e) of the Indenture, the Indenture
Trustee without further action shall be appointed as Successor Servicer pursuant
to and under this Section 8.2. The Servicer agrees to cooperate with the
Successor Servicer in effecting the termination of the responsibilities and
rights of the Servicer hereunder, including, without limitation, the transfer to
the Successor Servicer for administration by it of all cash amounts which shall
at the time be held by the Servicer for deposit, or have been deposited by the
Servicer, in the Collection Account, or for its own account in connection with
its services hereafter or thereafter received with respect to the Receivables
and the related Trust Assets. The Servicer shall transfer to the Successor
Servicer (i) all records held by the Servicer relating to the Receivables and
the related Trust Assets in such electronic form as the Successor Servicer may
reasonably request and (ii) any Receivables Files in the Servicer's possession
relating to the Receivables and the related Trust Assets. In addition, the
Servicer shall permit access to its premises during normal business hours
provided reasonable notice has been provided to the Servicer (including all
computer records and programs to the extent permitted under any related
licensing agreements) to the Successor Servicer or its designee, and shall pay
the reasonable out-of-pocket transition expenses of the Successor Servicer.

         SECTION 8.3. SUCCESSOR SERVICER TO ACT; APPOINTMENT OF SUCCESSOR
SERVICER. On or after a Service Transfer pursuant to Section 8.2, the Successor
Servicer shall be the successor in all respects to the Servicer in its capacity
as Servicer under this Agreement and the other Transaction Documents and the
transactions set forth or provided for herein and shall be subject to all the
responsibilities, duties and liabilities relating thereto placed on the Servicer
by the terms and provisions hereof, and the terminated Servicer shall be
relieved of such responsibilities, duties and liabilities arising after such
Service Transfer; PROVIDED, HOWEVER, that the Successor Servicer shall not be
liable for any acts or omissions of the Servicer occurring prior to such Service
Transfer or for any breach by the Servicer of any of its representations and
warranties or covenants contained herein or in any related document or
agreement. On or after a Service Transfer pursuant to Section 8.2, the Successor
Servicer shall be the successor in all respects to the Trust Administrator in
its capacity as Trust Administrator under the Administration Agreement and the
transactions set forth or provided for therein.

         SECTION 8.4. EFFECT OF TRANSFER.

                  (a) After a Service Transfer, the terminated Servicer shall
have no further obligations with respect to the management, administration,
servicing, custody or collection of the Receivables and the related Trust Assets
and the Successor Servicer appointed pursuant to Section 8.2 shall have all of
such obligations, except that the terminated Servicer will transmit or cause to
be transmitted directly to the Successor Servicer for its own account, promptly
on receipt and in the same form in which received, any amounts (properly
endorsed where required for the Successor Servicer to collect them) received as
payments upon or otherwise in connection with the Receivables and the related
Trust Assets.

                  (b) A Service Transfer shall not affect the rights and duties
of the parties hereunder (including but not limited to the indemnities of the

                                      -43-
<PAGE>   49

Servicer) other than those relating to the management, administration,
servicing, custody or collection of the Receivables and the related Trust
Assets.

         SECTION 8.5. SUCCESSOR SERVICER INDEMNIFICATION. The Servicer shall
defend, indemnify and hold the Successor Servicer and any officers, directors,
employees or agents of the Successor Servicer harmless against any and all
claims, losses, penalties, fines, forfeitures, reasonable legal fees and related
costs, judgments and any other costs, fees, and expenses that the Successor
Servicer may sustain in connection with the claims asserted at any time by third
parties against the Successor Servicer which result from (i) any illegal,
willful or grossly negligent act taken or omission by the Servicer or (ii) a
breach of any representations or covenants of the Servicer in SECTIONS 5.4 and
6.3 hereof. The indemnification provided by this SECTION 8.5 shall survive the
termination of this Agreement.

         SECTION 8.6. RESPONSIBILITIES OF THE SUCCESSOR SERVICER. The Successor
Servicer will not be responsible for delays attributable to the Predecessor
Servicer's failure to deliver information, defects in the information supplied
by the Predecessor Servicer or other circumstances beyond the control of the
Successor Servicer.

         The Successor Servicer will make arrangements with the Servicer for the
prompt and safe transfer of, and the Predecessor Servicer shall provide to the
Successor Servicer, all necessary servicing files and records, including (as
deemed necessary by the Successor Servicer at such time): (i) microfiche loan
documentation, (ii) servicing system tapes, (iii) Receivable payment history,
(iv) collections history and (v) the trial balances, as of the close of business
on the day immediately preceding conversion to the Successor Servicer,
reflecting all applicable loan information.

         The Successor Servicer shall have no responsibility and shall not be in
default hereunder nor incur any liability for any failure, error, malfunction or
any delay in carrying out any of its duties under this Agreement if any such
failure or delay results from the Successor Servicer acting in accordance with
information prepared or supplied by a Person other than the Successor Servicer
or from the failure of any such Person to prepare or provide such information.
The Successor Servicer shall have no responsibility, shall not be in default and
shall incur no liability (i) for any act or failure to act by any third party,
including the Servicer or for any inaccuracy or omission in a notice or
communication received by the Successor Servicer from any third party or (ii)
which is due to or results from the invalidity, unenforceability of any
Receivable with applicable law or the breach or the inaccuracy of any
representation or warrant made with respect to any Receivable.

         SECTION 8.7. WAIVER OF SERVICER TERMINATION EVENT. Noteholders
representing more than 50% of the Outstanding Amount of each Class of Notes,
may, by written notice delivered to the parties, waive any Servicer Termination
Event.

                                      -44-
<PAGE>   50

                                  ARTICLE NINE

                       PERFORMANCE AND DUTIES OF SERVICER

         SECTION 9.1. GENERAL REQUIREMENTS OF SERVICER. Servicer will maintain a
loan processing database and will service the Receivables and the other Trust
Assets in accordance with generally accepted receivables servicing practices for
similar types of receivables. In the performance of its duties, unless otherwise
specifically provided herein, Servicer shall comply with the terms of the
Receivables signed by the Obligor. Servicer shall use commercially reasonable
efforts (consistent with the preceding sentence) to collect and shall process
all payments in accordance with its present practice. Servicer shall also
provide the Facility Administrator with monthly reports of all cash flow
(including any delinquencies), together with such other information reasonably
requested by the Facility Administrator all in the form attached hereto as
SCHEDULE II as well as the reports described in this Article Nine; PROVIDED,
HOWEVER, in the event of a Service Transfer, the Back-up Servicer shall provide
the Facility Administrator with monthly reports of all cash flow (including any
delinquencies), together with such other information reasonably requested by the
Facility Administrator in the form attached hereto as SCHEDULE II as well as the
reports described in SECTIONS 9.4 and 9.6 hereof only. Servicer will remarket
Intervals related to Defaulted Receivables pursuant to SECTION 9.14 hereof and
make Servicer Advances pursuant to SECTION 9.15 hereof. Notwithstanding anything
to the contrary contained herein, upon a Service Transfer, the Back-up Servicer
shall be under no obligation to remarket Intervals related to Defaulted
Receivables pursuant to SECTION 9.14 hereof, make Servicer Advances pursuant to
SECTION 9.15 hereof or provide the information set forth in SECTION 9.4(H) or
SECTION 9.12 hereof.

         SECTION 9.2. SERVICER AS INDEPENDENT CONTRACTOR. Servicer shall have
the status of an independent contractor. Nothing herein contained shall be
considered to create a partnership or joint venture between the Trust, the
Facility Administrator, the Servicer or any Noteholder. Servicer is not to be
considered an agent or employee of the Trust or the Facility Administrator for
any purpose, and the employees of Servicer are not entitled to any of the
benefits that the Trust, the Facility Administrator or any Noteholder provides
its employees.

         SECTION 9.3. [OMITTED]

         SECTION 9.4. DESCRIPTION OF REPORTS. For each Collection Period during
the term of this Agreement, Servicer will prepare the following standard
industry reports and submit them to the Facility Administrator and the Indenture
Trustee no later than the second Business Day prior to the related Payment Date
(collectively, the "MONTHLY REPORT"):

                  (a)      Title:           TRIAL/AGING BALANCE REPORT
                           Purpose:         A listing of all Receivables
                                            indicating the outstanding principal
                                            balance of each Receivable and the
                                            aggregate outstanding balance of all
                                            Receivables.

                                      -45-
<PAGE>   51

                  (b)      Title:           NEW RECEIVABLES REPORT
                           Purpose:         A listing of all Receivables added
                                            to the Receivables Pool during such
                                            month.

                  (c)      Title:           CASH RECEIPTS REPORT
                           Purpose:         A listing of all Receivables showing
                                            the following with respect to each
                                            Receivable and totals with respect
                                            to all Receivables: payments
                                            received, showing a breakdown into
                                            principal, interest and other
                                            amounts paid.

                  (d)      Title:           DELINQUENCY/DEFAULT/AGING REPORT
                           Purpose:         A listing of all Receivables showing
                                            delinquencies, broken down into
                                            columns indicating the length of
                                            such delinquencies at 30 days, 60
                                            days, or 90 or more days, a listing
                                            of all Defaulted Receivables and a
                                            computer diskette or magnetic tape
                                            prepared in accordance with Exhibit
                                            B hereto which provides the aging
                                            history of the Receivables.

                  (e)      Title:           CANCELLATION, PREPAYMENT, UPGRADES
                                            AND PAYOFF REPORT
                           Purpose:         A listing of all Receivables which
                                            were canceled, paid off in their
                                            entirety, the subject of a
                                            prepayment or Upgrade.

                  (f)      Title:           SUMMARY REPORT
                           Purpose:         A report in the form of SCHEDULE II
                                            attached hereto or such other form
                                            as approved by the Facility
                                            Administrator summarizing changes
                                            from the prior month's report. The
                                            Facility Administrator may from time
                                            to time in its reasonable discretion
                                            modify the reporting requirements
                                            and add reports on an as-needed
                                            basis, which Servicer shall complete
                                            in a timely fashion. Servicer and
                                            the Facility Administrator shall
                                            agree upon the timing of preparation
                                            and delivery of additional reports
                                            and the additional cost, if any, of
                                            the modification.

                  (g)      Title:           CASH FLOW REPORT
                           Purpose:         A report which delineates total
                                            Collections received for a
                                            Collection Period, Servicer Advances

                                      -46-
<PAGE>   52

                                            made with respect to the related
                                            Payment Date as well as fees to
                                            third party service providers (I.E.
                                            Indenture Trustee Fees, Lockbox
                                            Fees, etc.).

                  (h)      Title:           VACATION POINTS/FULFILLMENT RATE
                                            REPORT
                           Purpose:         A report which (i) lists all
                                            outstanding Vacation Points and the
                                            total amount of available
                                            Accommodations relating thereto and
                                            (ii) sets forth the Fulfillment Rate
                                            for the most recently ended fiscal
                                            quarter.

         SECTION 9.5. OFFICER'S CERTIFICATE. The Reports delivered pursuant to
SECTION 9.4 hereof shall be accompanied by a certificate of an Officer of the
Servicer substantially in the form of EXHIBIT G, certifying the accuracy of the
Reports and that no Servicer Termination Event or event that with notice or
lapse of time or both would become a Servicer Termination Event has occurred, or
if such event has occurred and is continuing, specifying the event and its
status; PROVIDED, HOWEVER, that this SECTION 9.5 shall not apply after the
occurrence of a Service Transfer.

         SECTION 9.6. ANNUAL REPORT OF ACCOUNTANTS.

                  (a) The Servicer shall cause a firm of nationally recognized
independent certified public accountants (the "INDEPENDENT
ACCOUNTANTS")(PROVIDED that if the Back-up Servicer becomes the Servicer
hereunder, such accountants shall not be required to be "nationally
recognized"), to deliver to the Facility Administrator and the Indenture Trustee
beginning on June 30, 2001 (or April 30, 2001 with respect to the Back-up
Servicer), with respect to the twelve months ended the immediately preceding
March 31 (or other applicable date), a statement (the "ACCOUNTANT'S REPORT")
addressed to the Board of Directors of the Servicer and Servicer will promptly
provide a copy to the Facility Administrator and the Indenture Trustee to the
effect that such firm has audited the financial statements of Servicer and
issued its report thereon and that such audit:

                           (i) was made in accordance with generally accepted
                  auditing standards, and accordingly included such tests of the
                  accounting records and such other auditing procedures as such
                  firm considered necessary in the circumstances; and

                           (ii) so long as the Back-up Servicer is not the
                  Servicer, included an examination of documents and records
                  relating to the servicing of the Receivables and the related
                  Trust Assets under this Agreement.

The Accountant's Report shall further state that (so long as the Back-up
Servicer is not the Servicer):

                                      -47-
<PAGE>   53

                           (1)  a review in accordance with agreed upon
                                procedures was made of one randomly selected
                                Monthly Report; and

                           (2)  except as disclosed in the Report, no exceptions
                                or errors in the Monthly Report so examined were
                                found.

                  (b) The Accountant's Report shall also indicate that the firm
is independent of the Servicer within the meaning of the Code of Professional
Ethics of the American Institute of Certified Public Accountants.

         SECTION 9.7. ANNUAL STATEMENT OF COMPLIANCE FROM SERVICER. The Servicer
(in the event the Servicer is Bluegreen or an Affiliate thereof) will deliver to
the Facility Administrator and the Indenture Trustee, on or before January 31 of
each year commencing January 31, 2001, an Officer's Certificate stating that (a)
a review of the activities of the Servicer during the prior calendar year and of
its performance under this Agreement was made under the supervision of the
officer signing such certificate and (b) to such officer's knowledge, based on
such review, the Servicer has fully performed all its obligations under this
Agreement, or, if there has been a default in the performance of any such
obligation, specifying each such default known to such officer and the nature
and status thereof.

         SECTION 9.8. SALES AND INVENTORY REPORTS. A quarterly report showing
all sales and cancellations of sales of Intervals on Resorts and Additional
Resorts on a resort by resort basis, in form and content reasonably satisfactory
to the Facility Administrator; and within thirty (30) Business Days after the
end of each fiscal year (provided the Servicer is Bluegreen or an Affiliate
thereof), an annual sales and inventory report for the Resorts and Additional
Resorts detailing the sales of all Intervals on a resort by resort basis during
such fiscal year and the available inventory of Units and Intervals, certified
by the Servicer (provided the Servicer is Bluegreen or an Affiliate thereof) to
be true, correct and complete and otherwise in the form approved by the Trust.

         SECTION 9.9. QUARTERLY FINANCIAL REPORTS. Within forty-five (45) days
after the end of each of Servicer's (provided the Servicer is Bluegreen or an
Affiliate thereof) first three fiscal quarterly periods each year (or, if later,
that date by which Bluegreen is required to file financial statements with the
Securities and Exchange Commission), unaudited financial statements of Servicer
(provided the Servicer is Bluegreen or an Affiliate thereof) certified by its
chief financial officer as well as, to the extent requested by the Facility
Administrator and available to Servicer (provided the Servicer is Bluegreen or
an Affiliate thereof), unaudited bi-annual financial statements of the Time
Share Association.

         SECTION 9.10. TIME SHARE ASSOCIATION REPORTS. To the extent the
Servicer is Bluegreen and Bluegreen or its Affiliates control the Resort or
Additional Resort, the quarterly and annual financial statements of the Time
Share Association and to the extent the Resort or Additional Resort is not in
the Servicer's or one of its Subsidiaries control, the Servicer shall make a
good faith effort to obtain the same from the respective Time Share Association.

                                      -48-
<PAGE>   54

         SECTION 9.11. AUDIT REPORTS. Promptly upon receipt thereof, one (1)
copy of each other report submitted to Servicer by its independent public
accountants in connection with any annual, interim or special audit made by them
of the books of the Servicer.

         SECTION 9.12. OTHER REPORTS. Such other reports, statements, notices or
written communications relating to the Servicer, the Time Share Associations,
the Resorts or the Additional Resorts as are available to Servicer and as the
Facility Administrator may reasonably require.

         SECTION 9.13. SEC REPORTS. Promptly upon their becoming publicly
available one (1) copy of each financial statement, report, notice or proxy
statement sent by Servicer to security holders generally, and of each regular or
periodic report and any registration statement, prospectus or written
communication (other than transmittal letters) in respect thereof filed by
Servicer with, or received by Servicer in connection therewith from, any
securities exchange or the Securities and Exchange Commission or any successor
agency.

         SECTION 9.14. SERVICER REMARKETING. The Servicer shall be obligated to
use commercially reasonable efforts to remarket the Intervals related to
Defaulted Receivables. The Servicer shall not, with respect to the remarketing
of the Intervals associated with the Defaulted Receivables and related Trust
Assets, make any "ADVERSE SELECTION" (i.e. the Servicer shall remarket the
Intervals relating to Trust Assets with the same degree of care as Servicer's
own portfolio of Intervals) with respect to such Trust Assets vis-a-vis other
receivables serviced by the Servicer. The Servicer, on behalf of the Trust and
at the discretion of the Facility Administrator, shall take all necessary steps
to have the record title of the applicable Resort Interests subject to such
Defaulted Receivables continue to be held by the Club Trustee. In such event,
the Servicer shall direct the Club Trustee, directly or through its agents, (i)
to exercise the remedies provided for in the Club Trust Agreement, in the
Receivables themselves or in the other Club documents with respect to such
Defaulted Receivables and the Obligors thereunder and (ii) to remarket the
"Owner Beneficiary Rights" (as defined in the Club Trust Agreement) of the
Obligors under such Defaulted Receivables with the purpose of effecting a
recovery in respect of such Defaulted Receivables or finding replacements
therefor. The Servicer, at the request of the Facility Administrator, shall
reserve its rights under the Club Trust Agreement and/or the applicable
Mortgages to obtain, at any time, record title and all beneficial interests in
respect of the Intervals related to Defaulted Receivables. All actions taken by
the Servicer in respect of any Defaulted Receivable shall, at all times, be
carried out in a manner such that none of the Trust, the Facility Administrator,
the Owner Trustee or the Indenture Trustee shall, under applicable law, be
deemed to be the developer or declarant of any Resort, Additional Resort or the
Club. The Servicer shall deposit the proceeds associated with the remarketing of
the Interval related to a Defaulted Receivable into the Lockbox Account and
shall be paid the "REMARKETING FEE" associated with such Interval from the
proceeds of the remarketing thereof pursuant to SECTION 2.11 or pursuant to the
Servicer Purchase Option. The Servicer (in the event the Servicer is Bluegreen

                                      -49-
<PAGE>   55

or an Affiliate thereof other than the Trust Depositor) shall at all times have
the right (but not the obligation) to utilize the Servicer Purchase Option in
lieu of performing the remarketing functions set forth in this Section.

         SECTION 9.15. SERVICER ADVANCES. The Servicer is obligated to make on
the Business Day preceding a Payment Date advances of regularly scheduled
principal and interest payments relating to any Receivable the subject of a
delinquent payment (other than a Defaulted Receivable with respect to which
there shall be no Servicer Advances) if it determines in its sole discretion
that such advances will be recoverable in future periods (each a "SERVICER
ADVANCE" and collectively the "SERVICER ADVANCES"). Such Servicer Advances are
reimbursable from Collections pursuant to SECTION 2.11.

         SECTION 9.16. CONSIDERATION. As consideration for Servicer's
performance of the Receivables servicing as described herein, Servicer shall be
paid the Servicing Fee in accordance with SECTION 2.11.

                                  ARTICLE TEN

                             FACILITY ADMINISTRATOR

         SECTION 10.1. APPOINTMENT; NATURE OF RELATIONSHIP. Heller Financial,
Inc. is hereby appointed by each Noteholder as its contractual representative
(herein referred to as the "Facility Administrator") hereunder and under each
other Transaction Document, and each of the Noteholders irrevocably authorizes
the Facility Administrator to act as the contractual representative of such
Noteholder with the rights and duties expressly set forth herein and in the
other Transaction Documents. The Facility Administrator agrees to act as such
contractual representative upon the express conditions contained in this Article
X. Notwithstanding the use of the defined term "Facility Administrator," it is
expressly understood and agreed that the Facility Administrator shall not have
any fiduciary responsibilities to any Noteholder by reason of this Agreement or
any other Transaction Document and that the Facility Administrator is merely
acting as the contractual representative of the Noteholders with only those
duties as are expressly set forth in this Agreement and the other Transaction
Documents. In its capacity as the Noteholders' contractual representative, the
Facility Administrator (i) does not hereby assume any fiduciary duties to any of
the Noteholders and (ii) is acting as an independent contractor, the rights and
duties of which are limited to those expressly set forth in this Agreement and
the other Transaction Documents. Each of the Noteholders hereby agrees to assert
no claim against the Facility Administrator on any agency theory or any other
theory of liability for breach of fiduciary duty, all of which claims each
Noteholder hereby waives.

         SECTION 10.2. POWERS. The Facility Administrator shall have and may
exercise such powers under the Transaction Documents as are specifically
delegated to the Facility Administrator by the terms thereof, together with such

                                      -50-
<PAGE>   56

powers as are reasonably incidental thereto. The Facility Administrator shall
have no implied duties to the Noteholders, or any obligation to the Noteholders
to take any action thereunder except any action specifically provided by the
Transaction Documents to be taken by the Facility Administrator.

         SECTION 10.3. GENERAL IMMUNITY. Neither the Facility Administrator nor
any of its directors, officers, agents or employees shall be liable to any
Noteholder for any action taken or omitted to be taken by it or them hereunder
or under any other Transaction Document or in connection herewith or therewith
except to the extent such action or inaction is determined in a final
non-appealable judgment by a court of competent jurisdiction to have arisen from
the gross negligence or willful misconduct of such Person.

         SECTION 10.4. NO RESPONSIBILITY FOR ADVANCES, RECITALS, ETC. Neither
the Facility Administrator nor any of its directors, officers, agents or
employees shall be responsible for or have any duty to ascertain, inquire into,
or verify (a) any statement, warranty or representation made in connection with
any Transaction Document or any advances hereunder; (b) the performance or
observance of any of the covenants or agreements of any obligor under any
Transaction Document, including, without limitation, any agreement by an obligor
to furnish information directly to each Noteholder; (c) the satisfaction of any
condition specified in Article IV, except receipt of items required to be
delivered solely to the Facility Administrator; (d) the existence or possible
existence of any Event of Default, Servicer Termination Event or Termination
Event; (e) the validity, enforceability, effectiveness, sufficiency or
genuineness of any Transaction Document or any other instrument or writing
furnished in connection therewith; (f) the value, sufficiency, creation,
perfection or priority of any Lien in any collateral security; or (g) the
financial condition of the Servicer or its Subsidiaries. The Facility
Administrator shall have no duty to disclose to the Noteholders information that
is not required to be furnished by the Servicer to the Facility Administrator at
such time, but is voluntarily furnished by the Servicer to the Facility
Administrator (either in its capacity as Facility Administrator or in its
individual capacity); PROVIDED that if any such information is provided to any
Noteholder by the Facility Administrator, the Facility Administrator shall
provide such information to all Noteholders.

         SECTION 10.5. ACTION ON INSTRUCTIONS OF NOTEHOLDERS. The Facility
Administrator shall in all cases be fully protected in acting, or in refraining
from acting, hereunder and under any other Transaction Document in accordance
with written instructions signed by the Noteholders holding the required
percentage of the Outstanding Amount of the Notes, and such instructions and any
action taken or failure to act pursuant thereto shall be binding on all of the
Noteholders. The Noteholders hereby acknowledge that the Facility Administrator
shall be under no duty to take any discretionary action permitted to be taken by
it pursuant to the provisions of this Agreement or any other Transaction
Document unless it shall be requested in writing to do so by the Noteholders.
The Facility Administrator shall be fully justified in failing or refusing to
take any action hereunder and under any other Transaction Document unless it
shall first be indemnified to its satisfaction by the Noteholders pro rata
against any and all liability, cost and expense that it may incur by reason of
taking or continuing to take any such action.

                                      -51-
<PAGE>   57

         SECTION 10.6. EMPLOYMENT OF AGENTS AND COUNSEL. The Facility
Administrator may execute any of its duties as Facility Administrator hereunder
and under any other Transaction Document by or through employees, agents, and
attorneys-in-fact and shall not be answerable to the Noteholders, except as to
money or securities received by it or its authorized agents, for the default or
misconduct of any such agents or attorneys-in-fact selected by it with
reasonable care. The Facility Administrator shall be entitled to advice of
counsel concerning the contractual arrangement between the Facility
Administrator and the Noteholders and all matters pertaining to the Facility
Administrator's duties hereunder and under any other Transaction Document.

         SECTION 10.7. RELIANCE ON DOCUMENTS; COUNSEL. The Facility
Administrator shall be entitled to rely upon any notice, consent, certificate,
affidavit, letter, telegram, statement, paper, data or document believed by it
to be genuine and correct and to have been signed or sent by the proper person
or persons, and, in respect to legal matters, upon the opinion of counsel
selected by the Facility Administrator, which counsel may be employees of the
Facility Administrator.

         SECTION 10.8. FACILITY ADMINISTRATOR'S REIMBURSEMENT AND
INDEMNIFICATION. Each Noteholder agrees to reimburse and indemnify the Facility
Administrator ratably in proportion to the aggregate Outstanding Amount of Notes
held by such Noteholder (i) for any amounts not reimbursed by the Servicer, any
Seller, the Trust or the Trust Depositor for which the Facility Administrator is
entitled to reimbursement by the Servicer, any Seller, the Trust or the Trust
Depositor under the Transaction Documents, (ii) for any other expenses incurred
by the Facility Administrator on behalf of the Noteholders, in connection with
the preparation, execution, delivery, administration and enforcement of the
Transaction Documents (including, without limitation, for any expenses incurred
by the Facility Administrator in connection with any dispute between the
Facility Administrator and any Noteholder or between two or more of the
Noteholders) and (iii) for any liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind and nature whatsoever which may be imposed on, incurred by or asserted
against the Facility Administrator in any way relating to or arising out of the
Transaction Documents or any other document delivered in connection therewith or
the transactions contemplated thereby (including, without limitation, for any
such amounts incurred by or asserted against the Facility Administrator in
connection with any dispute between the Facility Administrator and any
Noteholder or between two or more of the Noteholders), or the enforcement of any
of the terms of the Transaction Documents or of any such other documents,
PROVIDED that no Noteholder shall be liable for any of the foregoing to the
extent any of the foregoing is found in a final non-appealable judgment by a
court of competent jurisdiction to have resulted from the gross negligence or
willful misconduct of the Facility Administrator. The obligations of the
Noteholders under this SECTION 10.8 shall survive payment of all amounts
hereunder and termination of this Agreement.

         SECTION 10.9. NOTICE OF DEFAULT. The Facility Administrator shall not
be deemed to have knowledge or notice of the occurrence of any Event of Default,
Servicer Termination Event or Termination Event unless the Facility
Administrator has received written notice from a Noteholder, the Trust, the

                                      -52-
<PAGE>   58

Trust Depositor, the Indenture Trustee or the Servicer referring to this
Agreement describing such Event of Default, Servicer Termination Event or
Termination Event and stating that such notice is a "notice of default" or words
of similar import. In the event that the Facility Administrator receives such a
notice, the Facility Administrator shall give prompt notice thereof to the
Indenture Trustee and the Noteholders.

         SECTION 10.10. RIGHTS AS A NOTEHOLDER. In the event the Facility
Administrator is a Noteholder, the Facility Administrator shall have the same
rights and powers hereunder and under any other Transaction Document as any
Noteholder and may exercise the same as though it were not the Facility
Administrator, and the term "Noteholder" or "Noteholders" shall, at any time
when the Facility Administrator is a Noteholder, unless the context otherwise
indicates, include the Facility Administrator in its individual capacity. The
Facility Administrator and its Affiliates may lend money to, and generally
engage in any kind of trust, debt, equity or other transaction, in addition to
those contemplated by this Agreement or any other Transaction Document, with the
Servicer or any of its Subsidiaries in which the Servicer or such Subsidiary is
not restricted hereby from engaging with any other Person.

         SECTION 10.11. NOTEHOLDER CREDIT DECISION. Except as expressly set
forth in this Section 10.11, each Noteholder acknowledges that it has,
independently and without reliance upon the Facility Administrator or any other
Noteholder and based on such documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this
Agreement and the other Transaction Documents. Each Noteholder also acknowledges
that it will, independently and without reliance upon the Facility Administrator
or any other Noteholder and based on such documents and information as it shall
deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under this Agreement and the other Transaction
Documents. Notwithstanding the foregoing, the Noteholders acknowledge and the
Facility Administrator agrees that the Facility Administrator will perform
certain due diligence including tests resulting in FICO scores with respect to
the Obligors of certain Receivables and file review procedures consisting of
those items listed on EXHIBIT K hereto (collectively, the "Specified
Procedures"). The Facility Administrator shall be under no duty to inquire as to
the accuracy or genuineness of the information provided to it in conducting the
Specified Procedures nor shall it have any duty to review any information other
than such files, reports and other information provided to it by Bluegreen.

         SECTION 10.12. SUCCESSOR FACILITY ADMINISTRATOR. The Facility
Administrator, with the written consent of the Servicer (so long as Bluegreen or
an Affiliate thereof is the Servicer), which consent shall not be unreasonably
withheld or delayed, may resign at any time by giving written notice thereof to
the Noteholders and the Servicer, such resignation to be effective upon the
appointment of a successor Facility Administrator or, if no successor Facility
Administrator has been appointed, forty-five days after the retiring Facility
Administrator gives notice of its intention to resign. The Facility
Administrator may be removed at any time with or without cause by written notice

                                      -53-
<PAGE>   59

received by the Facility Administrator from all of the Noteholders, such removal
to be effective on the date specified by such Noteholders. Upon any such
resignation or removal, the Noteholders shall have the right to appoint, on
behalf of the Noteholders, a successor Facility Administrator with the consent
of the Servicer (so long as the Servicer is Bluegreen or an Affiliate thereof),
which such consent shall not be unreasonably withheld or delayed. If no
successor Facility Administrator shall have been so appointed by the Noteholders
within thirty days after the resigning Facility Administrator's giving notice of
its intention to resign, then the resigning Facility Administrator may appoint,
on behalf of the Noteholders, a successor Facility Administrator.
Notwithstanding the previous sentence, the Facility Administrator may at any
time without the consent of the Servicer or any Noteholder, appoint any of its
Affiliates which is a commercial bank or other financial institution as a
successor Facility Administrator hereunder. If the Facility Administrator has
resigned or been removed and no successor Facility Administrator has been
appointed, the Noteholders may perform all the duties of the Facility
Administrator hereunder and for all other purposes shall deal directly with the
parties hereto. No successor Facility Administrator shall be deemed to be
appointed hereunder until such successor Facility Administrator has accepted the
appointment. Upon the acceptance of any appointment as Facility Administrator
hereunder by a successor Facility Administrator, such successor Facility
Administrator shall thereupon succeed to and become vested with all the rights,
powers, privileges and duties of the resigning or removed Facility
Administrator. Upon the effectiveness of the resignation or removal of the
Facility Administrator, the resigning or removed Facility Administrator shall be
discharged from its duties and obligations hereunder and under the Transaction
Documents. After the effectiveness of the resignation or removal of a Facility
Administrator, the provisions of this Article X shall continue in effect for the
benefit of such Facility Administrator in respect of any actions taken or
omitted to be taken by it while it was acting as the Facility Administrator
hereunder and under the other Transaction Documents.

                                 ARTICLE ELEVEN

                         ASSIGNMENTS; REPURCHASE OPTION

         SECTION 11.1. ASSIGNMENTS; PARTICIPATIONS.

                  (a) Except as otherwise contemplated by or permitted under
this Agreement, neither the Trust, the Trust Depositor nor the Servicer may
assign its rights under this Agreement without the prior written consent of more
than 66 2/3% of the Outstanding Amount of each Class of Notes.

                  (b) Any Noteholder may, in the ordinary course of its business
and in accordance with applicable law, at any time sell to one or more banks or
other entities ("PARTICIPANTS") participating interests in the Notes. In the
event of any such sale by a Noteholder of participating interests to a
Participant, such Noteholder's obligations under the Transaction Documents shall
remain unchanged, such Noteholder shall remain solely responsible to the other
parties hereto for the performance of such obligations, all amounts payable

                                      -54-
<PAGE>   60

under this Agreement or the other Transaction Documents shall be determined as
if such Noteholder had not sold such participating interests, and all parties
shall continue to deal solely and directly with such Noteholder in connection
with such Noteholder's rights and obligations under the Transaction Documents.

                  (c) Except as provided in the applicable Note Purchase
Agreement, any Noteholder may, in the ordinary course of its business and in
accordance with applicable law, at any time assign to one or more banks or other
entities all or any part of its rights and obligations under the Transaction
Documents.

         SECTION 11.2. TRUST DEPOSITOR'S REPURCHASE OPTION.

         Following Trust Depositor's written notice to the Indenture Trustee and
the Facility Administrator at least twenty (20) days prior to a Payment Date, if
the Receivable Balance of all Receivables in the Asset Pool is then less than
10.00% of the aggregate Receivable Balances of the Receivables purchased
hereunder when so purchased, the Trust Depositor may (but is not required to)
repurchase from the Trust on that Payment Date all outstanding Trust Assets at a
price equal to the Aggregate Outstandings. Such price is to be deposited in the
Collection Account one Business Day before such Payment Date, against the
Indenture Trustee's retransfer and release of the Receivables and related Trust
Assets to the Trust Depositor.

                                 ARTICLE TWELVE

                                   TERMINATION

         SECTION 12.1. SALE OF TRUST ASSETS.

                  (a) Upon any sale of the assets of the Trust pursuant to
Section 9.02 of the Trust Agreement, the Servicer shall instruct the Indenture
Trustee to deposit the proceeds from such sale after all payments and reserves
therefrom have been made (the "INSOLVENCY PROCEEDS") in the Collection Account.
On the Payment Date on which the Insolvency Proceeds are deposited in the
Collection Account (or, if such proceeds are not so deposited on a Payment Date,
on the Payment Date immediately following such deposit), the Servicer shall
instruct the Indenture Trustee to allocate such Insolvency Proceeds and any
funds remaining on deposit in the Reserve Account (including the proceeds of any
sale of investments therein) in accordance with Section 2.11.

                                      -55-
<PAGE>   61

                                ARTICLE THIRTEEN

                                  MISCELLANEOUS

         SECTION 13.1. AMENDMENTS AND WAIVERS.

                  (a) This Agreement may be amended from time to time by the
Trust Depositor, the Servicer, the Facility Administrator, the Indenture Trustee
and the Owner Trustee on behalf of the Trust, collectively, (with notice to the
Rating Agencies provided by the Class A Noteholder) but without the consent of
the Noteholders, to correct manifest error, to cure any ambiguity, to correct or
supplement any provisions in this Agreement which are inconsistent with the
provisions herein which may be ambiguous or inconsistent with any other
provisions herein or in any other Transaction Document, as the case may be, or
to add any other provisions with respect to matters or questions arising under
this Agreement that shall not be inconsistent with the provisions of this
Agreement.

                  (b) Without limiting Section 13.1(a) above, this Agreement may
also be amended from time to time by the Trust Depositor, the Servicer, the
Facility Administrator, the Indenture Trustee and the Owner Trustee on behalf of
the Trust, with the consent of the Noteholders of more than 50% of the
outstanding balance of each Class of Notes, PROVIDED, HOWEVER, that no such
amendment shall (i) increase or reduce in any manner the amount of, or
accelerate or delay the timing of, collections of payments on the Receivables or
distributions which are required to be made on any Note, (ii) amend the Reserve
Account Required Amount or the manner in which the Reserve Account is funded,
(iii) change the interest rate on any Notes or adversely affects the priority of
payment of principal or interest made to the Noteholders or (iv) reduce the
aforesaid percentage required to consent to any such amendment, without the
consent of the Noteholders.

                  (c) Promptly after the execution of any such amendment or
consent not requiring Noteholder consent, the Indenture Trustee, as the case may
be, shall furnish written notification of the substance of such amendment or
consent to each Noteholder. It shall not be necessary for the consent of
Noteholders pursuant to SECTION 13.1(B) to approve the particular form of any
proposed amendment or consent, but it shall be sufficient if such consent shall
approve the substance thereof. The manner of obtaining such consents and of
evidencing the authorization by Noteholders of the execution thereof shall be
subject to such reasonable requirements the Indenture Trustee may prescribe.

                  (d) Prior to the execution of any amendment to this Agreement,
pursuant to Section 13.1(a) the Indenture Trustee shall be entitled to receive
and rely upon an Opinion of Counsel stating that the execution of such amendment
is authorized or permitted by this Agreement. The Indenture Trustee may, but
shall not be obligated to, enter into any such amendment which affects the
Indenture Trustee's own rights, duties or immunities under this Agreement or
otherwise.

                                      -56-
<PAGE>   62

                  (e) Upon the execution of any amendment or consent pursuant to
this SECTION 13.1, this Agreement shall be modified in accordance therewith, and
such amendment or consent shall form a part of this Agreement for all purposes,
and every holder of Notes and Certificates theretofore or thereafter issued
hereunder shall be bound thereby.

         SECTION 13.2. PROTECTION OF TITLE TO TRUST.

                  (a) The Servicer shall execute and file such financing
statements and cause to be executed and filed such continuation statements, all
in such manner and in such places as may be required by law fully to preserve,
maintain and protect the interest of the Trust, the Noteholders, the Indenture
Trustee and the Owner Trustee in the Trust Assets and in the proceeds thereof.
The Servicer shall deliver (or cause to be delivered) to the Owner Trustee and
the Indenture Trustee file-stamped copies of, or filing receipts for, any
document filed as provided above, as soon as available following such filing.

                  (b) Neither the Trust, the Trust Depositor nor the Servicer
shall change its name, identity or corporate structure in any manner that would,
could or might make any financing statement or continuation statement filed
seriously misleading within the meaning of ss. 9-402(7) of the UCC, unless it
shall have given the Trust, the Owner Trustee, the Facility Administrator and
the Indenture Trustee at least 30 days' prior written notice thereof and shall
have promptly filed appropriate amendments to all previously filed financing
statements or continuation statements.

                  (c) The Trust, the Trust Depositor and the Servicer shall give
the Facility Administrator, the Owner Trustee and the Indenture Trustee at least
30 days' prior written notice of any relocation of the principal executive
office of the Trust Depositor and the Servicer (in the case of notice provided
by the Servicer) if, as a result of such relocation, the applicable provisions
of the UCC would require filing of any amendment of any previously filed
financing or continuation statement or of any new financing statement and shall
promptly file any such amendment or new financing statement. The Servicer shall
at all times maintain each office from which it shall service Receivables, and
its principal executive office, within the United States.

                  (d) The Servicer shall maintain or cause to be maintained
accounts and records as to each Receivable accurately and in sufficient detail
to permit (i) the reader thereof to know at any time the status of such
Receivable, including payments and recoveries made and payments owing (and the
nature of each) and (ii) reconciliation between payments or recoveries on (or
with respect to) each Receivable and the amounts from time to time deposited in
or credited to the Collection Account in respect of each Receivable.

                  (e) The Servicer shall maintain or cause to be maintained its
computer systems so that, from and after the time of sale under this Agreement
of the Receivables, the Servicer's master computer records (including any backup
archives) that shall refer to a Receivable indicate clearly the interest of the
Trust and the Indenture Trustee in such Receivable and that such Receivable is
owned by the Trust and has been pledged to the Indenture Trustee. Indication of

                                      -57-
<PAGE>   63

the Trust's ownership of and the Indenture Trustee's interest in a Receivable
shall be deleted from or modified on the Servicer's computer systems when, and
only when, the Indenture Trustee's Lien on the related Receivable shall have
been released in accordance with the applicable provisions of the Transaction
Documents.

                  (f) If at any time the Trust Depositor or the Servicer shall
propose to sell, grant a security interest in, or otherwise transfer any
interest in vacation timeshare contracts to any prospective purchaser, lender or
other transferee, the Servicer shall give or cause to be given to such
prospective purchaser, lender or other transferee computer tapes, records or
print-outs (including any restored from back-up archives) that, if they shall
refer in any manner whatsoever to any Receivable, shall indicate clearly that
such Receivable has been sold and is owned by the Trust and has been pledged to
the Indenture Trustee.

                  (g) Upon request, the Servicer shall furnish to the Facility
Administrator and the Indenture Trustee, within five Business Days, a list of
all Receivables then held as part of the Trust Assets, together with a
reconciliation of such list to the Schedule of Receivables and to each of the
Monthly Reports furnished before such request indicating removal of Receivables
from the Trust.

                  (h) The Servicer shall deliver to the Owner Trustee, the
Facility Administrator and the Indenture Trustee promptly after the execution
and delivery of this Agreement and of each amendment hereto, an Opinion of
Counsel either (A) stating that, in the opinion of such counsel, all financing
statements and continuation statements have been executed and filed that are
necessary fully to preserve and protect the interest of the Owner Trustee and
the Indenture Trustee and reciting the details of each filings or referring to
prior Opinions of Counsel in which such details are given, or (B) stating that,
in the opinion of such counsel, no such action shall be necessary to preserve
and protect such interest.

         SECTION 13.3. NOTICES, ETC.

         All notices, demands, certificates, requests and communications
hereunder ("NOTICES") shall be in writing and shall be effective (a) upon
receipt when sent through the U.S. mails, registered or certified mail, return
receipt requested, postage prepaid, with such receipt to be effective the date
of delivery indicated on the return receipt, or (b) one Business Day after
delivery to an overnight courier, or (c) on the date personally delivered to an
Authorized Officer of the party to which sent, or (d) on the date transmitted by
legible telefax transmission with a verbal confirmation of receipt (except that
notices and communications pursuant to Article II shall not be effective until
received with respect to any notice sent by mail or telex), in all cases
addressed to the recipient as follows:

         If to Bluegreen or the Servicer:     Bluegreen Corporation
                                              4960 Blue Lake Drive
                                              Boca Raton, Florida 33431
                                              Attn: Patrick E. Rondeau, Esq.
                                              Telecopy: (561) 912-8299

                                        -58-
<PAGE>   64

         If to the Trust Depositor:           Bluegreen Receivables Finance
                                                Corporation IV
                                              4960 Blue Lake Drive
                                              Boca Raton, Florida 33431
                                              Attn: Patrick E. Rondeau, Esq.
                                              Telecopy: (561) 912-8299

         If to the Owner Trustee:             Wilmington Trust Company
                                              Rodney Square North
                                              1100 North Market Street
                                              Wilmington, Delaware 19890-0001
                                              Attention: Corporate Trust
                                                         Administration
                                              Telecopier No.: (302) 651-8882

                                              with a copy (for so long as
                                              Bluegreen or an Affiliate
                                              thereof is the Servicer) to:

                                              Bluegreen Corporation
                                              4960 Blue Lake Drive
                                              Boca Raton, Florida 33431
                                              Attn: Patrick E. Rondeau, Esq.
                                              Telecopy: (561) 912-8299

         If to the Facility Administrator:    Heller Financial, Inc.
                                              30th Floor - HREF/VO
                                              500 W. Monroe Street
                                              Chicago, Illinois  60661
                                              Attn:  Group General Counsel -
                                              Vacation Ownership
                                              Telecopier No.: (312) 441-7872

         If to the Back-Up Servicer:          Concord Servicing Corporation
                                              6560 North Scottsdale Road
                                              Suite G-100
                                              Scottsdale, Arizona 85253
                                              Attn: Frederick G. Pink, Esq.
                                              Telecopier No.: (602) 951-8879

         If to the Indenture Trustee
                  or the Custodian:           U.S. Bank Trust National
                                                Association
                                              180 East Fifth Street
                                              St. Paul, Minnesota 55101
                                              Attn:  Structured Finance
                                              Telecopier No.:  (651) 244-0089

                                        -59-
<PAGE>   65

         If to the Club Trustee:              4950 Blue Lake Drive
                                              Suite 400
                                              Boca Raton, Florida 33431
                                              Attention: Patrick Rondeau, Esq.
                                              Telecopier No.: (561) 912-7999

         If to the Noteholders:               Barclays Bank PLC
                                              222 Broadway
                                              New York, New York 10038
                                              Telecopier No.: (212) 412-6846

                                              Heller Financial, Inc.
                                              30th Floor - HREF/VO
                                              500 W. Monroe Street
                                              Chicago, Illinois  60661
                                              Attn:    Manager - Client Services
                                                       Vacation Ownership
                                              Telecopier No.: (312) 441-7560

         Each party hereto may, by notice given in accordance herewith to each
of the other parties hereto, designate any further or different address to which
subsequent notices shall be sent.

         SECTION 13.4. NO WAIVER; REMEDIES.

         No failure on the part of the Facility Administrator or the Indenture
Trustee to exercise, and no delay in exercising, any right hereunder shall
operate as a waiver thereof; nor shall any single or partial exercise of any
right hereunder preclude any other or further exercise thereof or the exercise
of any other right. To the extent permitted by law, the remedies herein provided
are cumulative and not exclusive of any remedies provided by law.

         SECTION 13.5. BINDING EFFECT.

         This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and permitted assigns.

         SECTION 13.6. TERM OF THIS AGREEMENT.

         This Agreement, including, without limitation, the Servicer's and the
Trust Depositor's obligation to observe its respective covenants set forth in

                                      -60-
<PAGE>   66

Article VI, shall remain in full force and effect until there are no Aggregate
Outstandings; PROVIDED, HOWEVER, that the provisions of SECTION 13.9 and 13.10
shall be continuing and shall survive any termination of this Agreement.

         SECTION 13.7. GOVERNING LAW; CONSENT TO JURISDICTION; WAIVER OF
OBJECTION TO VENUE.

         THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF ILLINOIS. EACH OF THE PARTIES HERETO HEREBY AGREES TO
THE NON-EXCLUSIVE JURISDICTION OF ANY FEDERAL COURT LOCATED WITHIN THE STATE OF
ILLINOIS. EACH OF THE PARTIES HERETO HEREBY WAIVES ANY OBJECTION BASED ON FORUM
NON CONVENIENS, AND ANY OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER IN
ANY OF THE AFOREMENTIONED COURTS AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR
EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT.

         SECTION 13.8. WAIVER OF JURY TRIAL.

         TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE PARTIES HERETO
WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER
SOUNDING IN CONTRACT, TORT, OR OTHERWISE BETWEEN THE PARTIES HERETO ARISING OUT
OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP BETWEEN ANY OF
THEM IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.
INSTEAD, ANY SUCH DISPUTE RESOLVED IN COURT WILL BE RESOLVED IN A BENCH TRIAL
WITHOUT A JURY.

         SECTION 13.9. COSTS, EXPENSES AND TAXES.

                  (a) Bluegreen and the Trust Depositor agree to pay or cause to
be paid on demand all reasonable out-of-pocket costs and expenses of the Trust
actually incurred in connection with the preparation, execution, delivery,
administration (including periodic auditing), amendment or modification of, or
any waiver or consent issued in connection with, this Agreement and the other
documents to be delivered hereunder or in connection herewith, including,
without limitation, the reasonable fees and out-of-pocket expenses of counsel
for the Trust with respect thereto and with respect to advising the Trust as to
its respective rights and remedies under this Agreement and the other documents
to be delivered hereunder or in connection herewith, and all costs and
out-of-pocket expenses, if any (including reasonable counsel fees and expenses),
incurred by the Trust in connection with the enforcement of this Agreement and
the other documents to be delivered hereunder or in connection herewith.

                  (b) Bluegreen and the Trust Depositor shall pay or cause to be
paid on demand any and all damages, losses, claims, liabilities, fees and

                                      -61-
<PAGE>   67

related costs and expenses, (including the reasonable fees and out-of pocket
expenses of attorneys) actually incurred by or awarded against the Trust, the
Noteholders, the Facility Administrator or any of their respective Affiliates
(each, an "INDEMNIFIED PARTY") arising out of or as a result of any acts,
omissions or alleged acts or omissions of the Sellers or Trust Depositor in
violation or in contravention of this Agreement or other Transaction Documents
and owed by such Indemnified Party to any other Person; PROVIDED that neither
the Trust Depositor nor Bluegreen shall be liable for the payment of any portion
of such damages, losses, claims, liabilities, fees or related costs or expenses
resulting from the gross negligence or willful misconduct of an Indemnified
Party or the breach of a Requirement of Law by an Indemnified Party; PROVIDED,
HOWEVER, that nothing contained in this paragraph shall be construed to obligate
Bluegreen or the Trust Depositor to indemnify an Indemnified Party with respect
to losses, claims, damages and liabilities incurred as a result of the payment
performance of the Trust Assets.

                  (c) The Servicer agrees to indemnify and hold the Trust, the
Owner Trustee, the Indenture Trustee, the Noteholders and the Facility
Administrator and all of their officers, directors and employees harmless
against any and all claims, losses, penalties, fines, forfeitures, amounts paid
in settlement, judgments, reasonable attorneys' fees and related litigation
costs, fees and expenses which result from: (a) any action taken by or on behalf
of the Servicer (except in the event the Back-up Servicer is the Servicer)
relating to any Receivable or related Trust Asset which is not permitted by or
pursuant to the terms of this Agreement, (b) any illegal act or omission by the
Servicer, or (c) any act or omission constituting gross negligence or willful
misconduct by any officer, director, agent or employee of the Servicer in
connection with the Servicer's performance under this Agreement.

         SECTION 13.10. NO BANKRUPTCY COVENANT.

         The parties hereto hereby covenant and agree that they will not
institute against, or join any other Person in instituting against, the Trust,
the Trust Depositor or the Club Trustee any involuntary Insolvency Proceedings
or take any action in contemplation or furtherance thereof.

         SECTION 13.11. PROTECTION OF OWNERSHIP INTERESTS OF THE TRUST; INTENT
OF PARTIES; BACK-UP SECURITY INTEREST.

                  (a) The Trust Depositor agrees that from time to time, at its
expense, it will or will cause the Servicer to promptly execute and deliver all
instruments and documents, and take all actions, that may reasonably be
necessary or desirable, or that the Trust may reasonably request, to perfect,
protect or more fully evidence its ownership of and interest in the Trust
Assets, or to enable the Trust to exercise and enforce its rights and remedies
hereunder.

                  (b) If the Trust Depositor or the Servicer fails to perform
any of its obligations hereunder after ten (10) days' notice from the Trust, the
Trust may (but shall not be required to) perform, or cause performance of, such
obligation; and the Trust's costs and expenses incurred in connection therewith
shall be payable by the Trust Depositor (if the Servicer that fails to so
perform is the Trust Depositor or an Affiliate thereof) as provided in Section
12.9, as applicable. The Trust Depositor irrevocably authorizes the Trust and

                                      -62-
<PAGE>   68

appoints the Trust as its attorney-in-fact to act on behalf of the Trust
Depositor (i) to execute on behalf of the Trust Depositor as debtor and to file
financing statements necessary or desirable in the Trust's sole discretion to
perfect and to maintain the perfection and priority of the interest of the Trust
in the Trust Assets and (ii) to file a carbon, photographic or other
reproduction of this Agreement or any financing statement with respect to the
Trust Assets as a financing statement in such offices as the Trust in its sole
discretion deems necessary or desirable to perfect and to maintain the
perfection and priority of the interests of the Trust in the Trust Assets.

         SECTION 13.12. BACK-UP SECURITY INTEREST. It is the intention of the
Sellers, the Trust Depositor and the Trust that the transactions contemplated by
the Sale and Contribution Agreement and this Agreement constitute an irrevocable
sale, assignment and transfer of ownership of the Assets transferred thereunder
and the Trust Assets transferred hereunder. Nevertheless, in the event a court
of competent jurisdiction were to ever determine that the transactions
contemplated by the Sale and Contribution Agreement and this Agreement were
secured financings rather than "TRUE SALES", each Seller has granted the Trust
Depositor in the Sale and Contribution Agreement and the Trust Depositor by
assignment of its rights thereunder has granted (and hereby grants to) the Trust
a "SECURITY INTEREST" (the term security interest, as used throughout this
Agreement, is used as defined in the UCC) in the Trust Assets being conveyed
hereunder, which is enforceable in accordance with the UCC upon execution and
delivery of this Agreement securing the repayment of the purchase price paid
hereunder and the obligations and/or interests provided for in this Agreement
and in the order and priorities, and subject to the other terms and conditions
of this Agreement and the other Transaction Documents, together with such other
obligations or interests as may arise hereunder and thereunder in favor of the
parties hereto and thereto. Upon (i) the filing of UCC-1 financing statements
naming the Trust as secured party/buyer, the Trust Depositor, as debtor/seller,
and the Indenture Trustee, as assignee, and (ii) the Custodian, for the benefit
of the Trust, taking possession of the Receivables and Receivables Files, the
Trust shall have a first priority perfected security interest in the Trust
Assets and Collections, subject only to Permitted Liens. All filings (including,
without limitation, such UCC filings) as are necessary in any jurisdiction to
perfect the interest of the Trust in the Trust Assets and Collections have been
(or prior to the applicable Purchase will be) made. Upon the filing of UCC-1
financing statements naming (i) the Indenture Trustee as secured party and the
Trust as debtor with respect to the Trust Assets and (ii) the Custodian, for the
benefit of the Indenture Trustee, taking possession of the Receivables and
Receivables Files and, in the case of Incremental Purchases or Subsequent
Receivables on the applicable Incremental Purchase Date or Subsequent Transfer
Date, as applicable, the Indenture Trustee shall have a first priority perfected
security interest in the Trust Assets subject only to Permitted Liens. Neither
the Trust Depositor nor any Person claiming through or under Trust Depositor
shall have any claim to or interest in any of the Trust Assets, except to the
extent set forth in SECTIONS 2.11(A) and (B), as applicable, and if,
notwithstanding the expressed intention of the parties hereto, this Agreement
constitutes the grant of a security interest (for collateral purposes) in such
property, except for the interest of Trust Depositor in such property as a
debtor for purposes of the UCC.

                                      -63-
<PAGE>   69

         SECTION 13.13. EXECUTION IN COUNTERPARTS; SEVERABILITY; INTEGRATION.

         This Agreement may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which when taken together
shall constitute one and the same agreement. In case any provision in or
obligation under this Agreement shall be invalid, illegal or unenforceable in
any jurisdiction, the validity, legality and enforceability of the remaining
provisions or obligations, or of such provision or obligation in any other
jurisdiction, shall not in any way be affected or impaired thereby. This
Agreement and the other Transaction Documents contain the final and complete
integration of all prior expressions by the parties hereto with respect to the
subject matter hereof and shall constitute the entire agreement among the
parties hereto with respect to the subject matter hereof, superseding all prior
oral or written understandings.

         SECTION 13.14. FURTHER ASSURANCES. The Trust agrees that it will
cooperate with Servicer to facilitate the remarketing of Intervals and Vacation
Points relating to a Defaulted Receivable pursuant to SECTION 9.14.
Additionally, in the event Bluegreen is the "SERVICER" hereunder, Bluegreen or
the Club will be the exclusive "BROKER" of the Intervals or Vacation Points, as
the case may be.

         SECTION 13.15. SAVINGS CLAUSE. Notwithstanding anything to the contrary
stated herein, in the event Bluegreen Corporation is not acting as servicer
hereunder, the covenants in Section 6.3 (a), (b), (c), (d), (e), (f), (g), (k)
and (l) shall remain in full force and effect with respect to Bluegreen, and
Bluegreen shall remain obligated to provide those Reports described in Article
Nine hereof which it is able to continue to provide.

         SECTION 13.16. LIMITATION OF LIABILITY OF OWNER TRUSTEE AND INDENTURE
TRUSTEE.

                  (a) Notwithstanding anything contained herein to the contrary,
this instrument has been countersigned by Wilmington Trust Company, not in its
individual capacity but solely in its capacity as Owner Trustee of the Trust,
and in no event shall Wilmington Trust Company in its individual capacity or any
beneficial owner of the Trust have any liability for the representations,
warranties, covenants, agreements or other obligations of the Trust hereunder,
as to all of which recourse shall be had solely to the assets of the Trust. For
all purposes of this Agreement, in the performance of any duties or obligations
of the Trust hereunder, the Owner Trustee shall be subject to, and entitled to
the benefits of, the terms and provisions of Articles VI, VII and VIII of the
Trust Agreement.

                  (b) Notwithstanding anything contained herein to the contrary,
this Agreement has been countersigned by U.S. Bank Trust National Association,
not in its individual capacity but solely as Indenture Trustee, and in no event
shall U.S. Bank Trust National Association have any liability for the
representations, warranties, covenants, agreements or other obligations of the
Trust hereunder or in any of the certificates, notices or agreements delivered
pursuant hereto, as to all of which recourse shall be had solely to the Trust
Assets.

                                      -64-
<PAGE>   70

         SECTION 13.17. CONFIDENTIALITY. Each of the Facility Administrator and
the Noteholders (or any owner of an interest in a Note) agrees to take and to
use commercially reasonable efforts to cause its Affiliates to take normal and
reasonable precautions and exercise due care to maintain the confidentiality of
all non-public information provided to it by or on behalf of Bluegreen
(individually and in its capacity as Servicer) under this Agreement or any other
Transaction Document, and none of such Persons nor any of their Affiliates shall
use any such information other than in connection with or in enforcement of this
Agreement and the other Transaction Documents, except to the extent such
information (i) was or becomes generally available to the public other than as a
result of disclosure by such Person or one of its Affiliates, or (ii) was or
becomes available on a non-confidential basis from a source other than
Bluegreen, provided that such source is not bound by a confidentiality agreement
with Bluegreen known to such Person; PROVIDED, HOWEVER, that such Person or any
assignee (including any assignee thereof) may disclose such information (A) at
the request of, or pursuant to any requirement of any such Person, or in
connection with, an examination of such Person by any regulatory authority; (B)
pursuant to subpoena or other court process; (C) when required to do so in
accordance with the provisions of any applicable requirement of law; (D) to the
extent reasonably required in connection with any litigation or proceeding to
which such Person or any Affiliates may be party; (E) to the extent reasonably
required in connection with the exercise of any remedy hereunder or under any
other Transaction Document; (F) to such Person's independent auditors and other
professional advisors; (G) to any participant or assignee, actual or potential,
provided that such participant or assignee agrees in writing to keep such
information confidential to the same extent required of such Person hereunder;
(H) as to such Person or its Affiliate, as expressly permitted under the terms
of any other document or agreement regarding confidentiality to which Bluegreen
is party or is deemed party with such Person or its Affiliates; (I) to its
Affiliates; PROVIDED such Affiliate is bound by the confidentiality provisions;
(J) to any rating agency or regulatory body overseeing such Person or any
assignee and (K) to any party providing liquidity or credit support to such
Person or any assignee; provided that such participant or assignee agrees in
writing to keep such information confidential to the same extent required of
such Person hereunder.

                            [signature pages follow]

                                      -65-
<PAGE>   71

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

THE TRUST DEPOSITOR:              BLUEGREEN RECEIVABLES FINANCE CORPORATION IV
                                  By: /s/ JOHN F. CHISTE
                                      -----------------------------------------
                                  Printed Name:  JOHN F. CHISTE
                                  Title:
                                  Treasurer

THE SERVICER
AND BLUEGREEN:                    BLUEGREEN CORPORATION

                                  By: /s/ JOHN F. CHISTE
                                      -----------------------------------------
                                  Printed Name:  JOHN F. CHISTE
                                  Title:
                                  Treasurer

THE BACK-UP SERVICER:             CONCORD SERVICING CORPORATION

                                  By: /s/ FRED PINK
                                      -----------------------------------------
                                  Printed Name:  FRED PINK
                                  Title: Vice President

                 Signature Page to Sale and Servicing Agreement

                                      -66-
<PAGE>   72

THE TRUST:                     BXG RECEIVABLES OWNER TRUST 2000

                               By:  Wilmington Trust Company, not
                                    individually but solely as
                                    Owner Trustee

                               By: /s/ JILL K. MORRISON
                                   -----------------------------------------
                               Printed Name:  JILL K. MORRISON
                               Title: Financial Services

THE INDENTURE TRUSTEE
AND THE CUSTODIAN:             U.S. BANK TRUST NATIONAL
                               ASSOCIATION

                               By: /s/ TAMARA SCHULTZ-FUGH
                                   -----------------------------------------
                               Printed Name:  TAMARA SCHULTZ-FUGH
                               Title: ASSISTANT VICE PRESIDENT

THE CLUB TRUSTEE:              VACATION TRUST, INC., for itself and as
                               Club Trustee under the Club Trust Agreement

                               By:  /s/ CONSTANCE G. DODD
                                   -----------------------------------------
                               Printed Name: CONSTANCE G. DODD
                               Title: VICE PRESIDENT

THE FACILITY ADMINISTRATOR:    HELLER FINANCIAL, INC.

                               By: /s/  DENNIS K. HOLLAND
                                   -----------------------------------------
                               Printed Name:DENNIS K. HOLLAND
                               Title:  SENIOR VICE PRESIDENT

THE NOTEHOLDERS:               HELLER FINANCIAL, INC.

                               By: /s/  DENNIS K. HOLLAND
                                   -----------------------------------------
                               Printed Name: DENNIS K. HOLLAND
                               Title: SENIOR VICE PRESIDENT

                               BARCLAYS BANK PLC

                               By: /s/  ANDREW SCHUSTER
                                   -----------------------------------------
                               Printed Name:  ANDREW SCHUSTER
                               Title:  ASSOCIATE DIRECTOR

                 Signature Page to Sale and Servicing Agreement

                                      -67-<PAGE>   1
                                                                  EXHIBIT 10.107

                                                                  EXECUTION COPY

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

                                    INDENTURE

                                     BETWEEN

                        BXG RECEIVABLES OWNER TRUST 2000,
                                    AS ISSUER

                                       AND

                      U.S. BANK TRUST NATIONAL ASSOCIATION,
                              AS INDENTURE TRUSTEE

                          DATED AS OF SEPTEMBER 1, 2000

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

<PAGE>   2

<TABLE>
<CAPTION>

<S>                                                                                                              <C>
ARTICLE I  Definitions and Incorporation by Reference.............................................................1
     SECTION 1.1.  Definitions....................................................................................1
     SECTION 1.2.  Rules of Construction..........................................................................1

ARTICLE II  The Notes ............................................................................................2
     SECTION 2.1.  Form...........................................................................................2
     SECTION 2.2.  Execution, Authentication and Delivery.........................................................2
     SECTION 2.3.  Temporary Notes................................................................................3
     SECTION 2.4.  Registration: Registration of Transfer and Exchange............................................3
     SECTION 2.5.  Mutilated, Destroyed, Lost or Stolen Notes.....................................................4
     SECTION 2.6.  Persons Deemed Owner...........................................................................5
     SECTION 2.7.  Payment of Principal and Interest - Defaulted Interest.........................................5
     SECTION 2.8.  Cancellation...................................................................................6
     SECTION 2.9.  Release of Collateral..........................................................................6
     SECTION 2.10. Definitive Notes...............................................................................6
     SECTION 2.11. Transfer Restrictions..........................................................................6
     SECTION 2.12. CUSIP Numbers.................................................................................10

ARTICLE III  Covenants; Representations and Warranties...........................................................10
     SECTION 3.1.  Payment of Principal and Interest.............................................................10
     SECTION 3.2.  Maintenance of Office or Agency...............................................................10
     SECTION 3.3.  Money for Payments To Be Held in Trust........................................................10
     SECTION 3.4.  Existence.....................................................................................12
     SECTION 3.5.  Protection of the Collateral..................................................................12
     SECTION 3.6.  Intentionally Omitted.........................................................................12
     SECTION 3.7.  Performance of Obligations; Servicing of Receivables..........................................12
     SECTION 3.8.  Negative Covenants............................................................................14
     SECTION 3.9.  Issuer May Consolidate, etc., Only on Certain Terms...........................................15
     SECTION 3.10. Successor or Transferee.......................................................................16
     SECTION 3.11. No Other Business.............................................................................17
     SECTION 3.12. No Borrowing..................................................................................17
     SECTION 3.13. Servicer's Obligations........................................................................17
     SECTION 3.14. Guarantees, Loans, Advances and Other Liabilities.............................................17
     SECTION 3.15. Capital Expenditures..........................................................................17
     SECTION 3.16. Notice of Defaults and Events of Default......................................................17
     SECTION 3.17. Further Instruments and Acts..................................................................17
     SECTION 3.18. Compliance with Laws..........................................................................17
     SECTION 3.19. Tax Treatment.................................................................................18
     SECTION 3.20. Investment Company Act........................................................................18
     SECTION 3.21. Conduct of Business...........................................................................18
     SECTION 3.22. Annual Statement as to Compliance.............................................................18
     SECTION 3.23. Representations and Warranties of the Issuer..................................................19

ARTICLE IV  Satisfaction and Discharge...........................................................................19
     SECTION 4.1.  Satisfaction and Discharge of Indenture.......................................................19
     SECTION 4.2.  Application of Trust Money....................................................................21
     SECTION 4.3.  Repayment of Moneys Held by Paying Agent......................................................21

</TABLE>

                                       i

<PAGE>   3

<TABLE>
<CAPTION>

<S>                                                                                                              <C>
ARTICLE V  Events of Default; Remedies...........................................................................21
     SECTION 5.1.  Events of Default.............................................................................21
     SECTION 5.2.  Acceleration of Maturity; Rescission and Annulment............................................23
     SECTION 5.3.  Collection of Indebtedness and Suits for Enforcement by Indenture
                               Trustee...........................................................................23
     SECTION 5.4.  Remedies; Priorities..........................................................................25
     SECTION 5.5.  Optional Preservation of the Receivables......................................................26
     SECTION 5.6.  Limitation of Suits...........................................................................26
     SECTION 5.7.  Unconditional Rights of Noteholders To Receive Principal and Interest.........................27
     SECTION 5.8.  Restoration of Rights and Remedies............................................................27
     SECTION 5.9.  Rights and Remedies Cumulative................................................................27
     SECTION 5.10.  Delay or Omission Not a Waiver...............................................................27
     SECTION 5.11.  Control by Noteholders.......................................................................28
     SECTION 5.12.  Waiver of Past Defaults......................................................................28
     SECTION 5.13.  Undertaking for Costs........................................................................28
     SECTION 5.14.  Waiver of Stay or Extension Laws.............................................................29
     SECTION 5.15.  Action on Notes..............................................................................29
     SECTION 5.16.  Performance and Enforcement of Certain Obligations...........................................29

ARTICLE VI  The Indenture Trustee................................................................................30
     SECTION 6.1.  Duties of the Indenture Trustee...............................................................30
     SECTION 6.2.  Rights of Indenture Trustee...................................................................31
     SECTION 6.3.  Individual Rights of the Indenture Trustee....................................................32
     SECTION 6.4.  Indenture Trustee's Disclaimer................................................................32
     SECTION 6.5.  Notice of Defaults............................................................................32
     SECTION 6.6.  Reports by Indenture Trustee to the Holders...................................................32
     SECTION 6.7.  Compensation and Indemnity....................................................................33
     SECTION 6.8.  Replacement of the Indenture Trustee..........................................................33
     SECTION 6.9.  Successor Indenture Trustee by Merger.........................................................34
     SECTION 6.10.  Appointment of Co-Trustee or Separate Trustee................................................34
     SECTION 6.11.  Eligibility; Disqualification................................................................36
     SECTION 6.12.  Representations and Warranties of Indenture Trustee..........................................36

ARTICLE VII  Noteholders' Lists and Reports......................................................................37
     SECTION 7.1.  Issuer To Furnish Indenture Trustee Names and Addresses of Noteholders........................37
     SECTION 7.2.  Preservation of Information: Communications to Noteholders....................................37

ARTICLE VIII  Accounts, Disbursements and Releases...............................................................37
     SECTION 8.1.  Collection of Money...........................................................................37
     SECTION 8.2.  Trust Accounts................................................................................37
     SECTION 8.3.  General Provisions Regarding Accounts.........................................................38
     SECTION 8.4.  Release of Collateral.........................................................................38

ARTICLE IX  Supplemental Indentures..............................................................................39
     SECTION 9.1.  Supplemental Indentures Without Consent of Noteholders........................................39
     SECTION 9.2.  Supplemental Indentures With Consent Noteholders..............................................39
     SECTION 9.3.  Execution of Supplemental Indentures..........................................................41

</TABLE>

                                       ii
<PAGE>   4
<TABLE>
<CAPTION>

<S>                                                                                                              <C>
     SECTION 9.4.  Effect of Supplemental Indenture..............................................................41
     SECTION 9.5.  Reference in Notes to Supplemental Indentures.................................................41

ARTICLE X  Redemption of Notes...................................................................................41
     SECTION 10.1.  Redemption...................................................................................41
     SECTION 10.2.  Form of Redemption Notice....................................................................42
     SECTION 10.3.  Notes Payable on Redemption Date.............................................................42

ARTICLE XI  Miscellaneous  42
     SECTION 11.1.  Compliance Certificates and Opinions, etc....................................................42
     SECTION 11.2.  Form of Documents Delivered to Indenture Trustee.............................................43
     SECTION 11.3.  Acts of Noteholders..........................................................................44
     SECTION 11.4.  Notices, etc., to the Indenture Trustee, Issuer, the Facility Administrator..................44
     SECTION 11.5.  Notices to Noteholders; Waiver...............................................................45
     SECTION 11.6.  Alternate Payment and Notice Provisions......................................................45
     SECTION 11.7.  Effect of Headings and Table of Contents.....................................................45
     SECTION 11.8.  Successors and Assigns.......................................................................45
     SECTION 11.9.  Severability.................................................................................45
     SECTION 11.10.  Benefits of Indenture.......................................................................45
     SECTION 11.11.  Legal Holiday...............................................................................46
     SECTION 11.12.  Governing Law; Waiver of Jury Trial.........................................................46
     SECTION 11.13.  Counterparts................................................................................46
     SECTION 11.14.  Recording of Indenture......................................................................46
     SECTION 11.15.  Trust Obligation............................................................................46
     SECTION 11.16.  No Petition.................................................................................47
     SECTION 11.17.  Inspection..................................................................................47
</TABLE>

                                      iii
<PAGE>   5

                                    EXHIBITS

EXHIBIT A-1          Form of Class A Notes
EXHIBIT A-2          Form of Class B Notes
EXHIBIT B            Form of Section 3.22 Officer's Certificate
EXHIBIT C            Form of Purchaser Representation Letter
EXHIBIT D            Form of Seller Representation Letter

                                       iv

<PAGE>   6

         INDENTURE, dated as of September 1, 2000, between BXG Receivables Owner
Trust 2000, a Delaware business trust (the "ISSUER"), and U.S. Bank Trust
National Association, a national banking association, as trustee and not in its
individual capacity (the "INDENTURE TRUSTEE").

         Each party agrees as follows for the benefit of the other party and for
the equal and ratable benefit of the Holders of the Issuer's Class A Notes (each
a "CLASS A NOTE") and Class B Notes (each a "CLASS B NOTE" and together with the
Class A Notes, the "NOTES").

                                 GRANTING CLAUSE

         The Issuer hereby Grants to the Indenture Trustee at the Closing Date,
on behalf of and for the benefit of the Noteholders, all of the Issuer's right,
title and interest in, to and under the following, whether now existing or
hereafter arising or acquired (collectively, the "COLLATERAL"):

                  (a) the Trust Assets;

                  (b) all rights of the Issuer under the Sale and Servicing
         Agreement;

                  (c) all present and future claims, demands, causes and choses
         in action in respect of any or all of the foregoing and all payments on
         or under and all proceeds of every kind and nature whatsoever in
         respect of any or all of the foregoing, including all proceeds of the
         conversion, voluntary or involuntary, into cash or other liquid
         property, all cash proceeds, accounts, accounts receivable, notes,
         drafts, acceptances, chattel paper, checks, deposit accounts, insurance
         proceeds, condemnation awards, rights to payment of any and every kind
         and other forms of obligations and receivables, instruments and other
         property that at any time constitute all or part of or are included in
         the proceeds of any and all of the foregoing.

         The foregoing Grant is made in trust to secure (x) the payment of
principal of and interest on, and any other amounts owing in respect of, the
Notes, as provided herein and (y) to secure compliance with this Indenture.

         The Indenture Trustee, on behalf of the Noteholders, (1) acknowledges
such Grant, and (2) accepts the trusts and the Grant of the Collateral under
this Indenture in accordance with this Indenture and agrees to perform its
duties required in this Indenture to the best of its ability to the end that the
interests of the Noteholders may be adequately and effectively protected.

                                   ARTICLE I

                   DEFINITIONS AND INCORPORATION BY REFERENCE

         SECTION 1.1. DEFINITIONS. Capitalized terms used but not otherwise
defined herein are defined in the Definitions Annex.

         SECTION 1.2. RULES OF CONSTRUCTION. Unless the context otherwise
requires: (i) a term has the meaning assigned to it; (ii) an accounting term not
otherwise defined has the meaning assigned to it in accordance with generally

<PAGE>   7

accepted accounting principles as in effect on the date hereof, (iii) "or" is
not exclusive; (iv) "including" means "including, without limitation"; and (v)
words in the singular include the plural and words in the plural include the
singular.

                                   ARTICLE II

                                    THE NOTES

         SECTION 2.1. FORM. The Class A Notes and Class B Notes, together with
the Indenture Trustee's certificate of authentication, shall be in substantially
the forms set forth in EXHIBIT A-1 and EXHIBIT A-2, respectively, with such
appropriate insertions, omissions, substitutions and other variations as are
required or permitted by this Indenture, and may have such letters, numbers or
other marks of identification and such legends or endorsements placed thereon,
as may, consistently herewith, be determined by the officers executing such
Notes, as evidenced by their execution of the Notes. Any portion of the text of
any Note may be set forth on the reverse thereof, with an appropriate reference
thereto on the face of the Note.

         The Notes shall be typewritten, printed, lithographed or engraved or
produced by any combination of these methods (with or without steel engraved
borders), all as determined by the officers executing such Notes, as evidenced
by their execution of such Notes.

         Each Note shall be dated the date of its authentication. The terms of
the Notes set forth in EXHIBIT A-1 and EXHIBIT A-2 are part of the terms of this
Indenture.

         SECTION 2.2. EXECUTION, AUTHENTICATION AND DELIVERY. The Notes shall be
executed on behalf of the Issuer by any of its Authorized Officers. The
signature of any such Authorized Officer on the Notes may be manual or
facsimile.

         Notes bearing the manual or facsimile signature of individuals who were
at the time of signature Authorized Officers of the Issuer shall bind the
Issuer, notwithstanding that such individuals or any of them have ceased to hold
such offices prior to the authentication and delivery of such Notes or did not
hold such offices at the date of such Notes.

         The Indenture Trustee shall upon an Issuer Order authenticate and
deliver Class A Notes for original issue in an aggregate principal amount of up
to $64,422,000 and (b) Class B Notes for original issue in an aggregate
principal amount of up to $25,578,000. The Outstanding Amount of Notes at any
time may not exceed the aggregate of such amounts except as provided in SECTION
2.5.

         The Notes shall be issuable as registered Notes in the minimum
denomination of $100,000 and in greater whole-dollar denominations in excess
thereof.

         No Note shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose unless there appears on such Note a
certificate of authentication substantially in the form provided for herein
executed by the Indenture Trustee by the manual signature of one of its
authorized signatories, and such certificate of authentication shall be
conclusive evidence, and the only evidence, that such Note has been duly
authenticated and delivered hereunder.

                                      -2-
<PAGE>   8

         SECTION 2.3. TEMPORARY NOTES. Pending the preparation of Definitive
Notes, the Issuer may execute, and upon receipt of an Issuer Order, the
Indenture Trustee shall authenticate and deliver, temporary Notes that are
printed, lithographed, typewritten, mimeographed or otherwise produced, of the
tenor of the Definitive Notes in lieu of which they are issued and with such
variations not inconsistent with this Indenture as the officers executing such
Notes may determine, as evidenced by their execution of such Notes.

         If temporary Notes are issued, the Issuer will cause Definitive Notes
to be prepared without unreasonable delay. After the preparation of Definitive
Notes, the temporary Notes shall be exchangeable for Definitive Notes upon
surrender of the temporary Notes at the office or agency of the Issuer to be
maintained as provided in SECTION 3.2, without charge to the Holder. Upon
surrender for cancellation of any one or more temporary Notes, the Issuer shall
execute and the Indenture Trustee shall authenticate and deliver in exchange
therefor a like principal amount of Definitive Notes of authorized
denominations. Until so exchanged, the temporary Notes shall in all respects be
entitled to the same benefits under this Indenture as if they were Definitive
Notes.

         SECTION 2.4. REGISTRATION: REGISTRATION OF TRANSFER AND EXCHANGE. The
Issuer shall cause to be kept a register (the "NOTE REGISTER") in which, subject
to such reasonable regulations as it may prescribe, the Issuer shall provide for
the registration of Notes and the registration of transfers of Notes. The
Indenture Trustee shall be the "NOTE REGISTRAR" for the purpose of registering
Notes and transfers of Notes as herein provided. Upon any resignation of any
Note Registrar, the Issuer shall promptly appoint a successor or, if it elects
not to make such an appointment, assume the duties of the Note Registrar.

         If a Person other than the Indenture Trustee is appointed by the Issuer
as the Note Registrar, the Issuer will give the Indenture Trustee and the
Facility Administrator prompt written notice of the appointment of such Note
Registrar and of the location, and any change in the location, of the Note
Register, and the Indenture Trustee and the Facility Administrator shall have
the right to inspect the Note Register at all reasonable times, to obtain copies
thereof and to rely upon a certificate executed on behalf of the Note Registrar
by a Responsible Officer thereof as to the names and addresses of the Holders of
the Notes and the principal amounts and number of such Notes.

         Subject to the terms and conditions of this Indenture, upon surrender
for registration of transfer of any Note at the office or agency of the Issuer
to be maintained as provided in SECTION 3.2, if the requirements of SECTION
8-401(1) of the UCC are met, the Issuer shall execute, the Indenture Trustee
shall authenticate and the Noteholder shall obtain from the Indenture Trustee,
in the name of the designated transferee or transferees, one or more new Notes
in any authorized denominations of a like aggregate principal amount.

         At the option of the Holder, Notes may be exchanged for other new Notes
of the same Class in any authorized denominations of a like aggregate principal
amount, upon surrender of the Notes to be exchanged at such office or agency.
Subject to the terms and conditions of this Indenture, whenever any Notes are so

                                      -3-
<PAGE>   9

surrendered for exchange, if the requirements of SECTION 8-401(1) of the UCC are
met, the Issuer shall execute, the Indenture Trustee shall authenticate and the
Noteholder shall obtain from the Indenture Trustee, the Notes that the
Noteholder making the exchange is entitled to receive.

         All Notes issued upon any registration of transfer or exchange of Notes
shall be the valid obligations of the Issuer, evidencing the same debt and
entitled to the same benefits under this Indenture as the Notes surrendered upon
such registration of transfer or exchange.

         Every Note presented or surrendered for registration of transfer or
exchange shall be duly endorsed by, or be accompanied by a written instrument of
transfer in form satisfactory to the Indenture Trustee and the Issuer and duly
executed by, the Holder thereof or such Holder's attorney duly authorized in
writing, with such signature guaranteed by an "eligible guarantor institution"
meeting the requirements of the Note Registrar, which requirements include
membership or participation in the "Securities Transfer Agent's Medallion
Program" ("STAMP") or such other "signature guarantee program" as may be
determined by the Note Registrar in addition to, or in substitution for, STAMP.

         No service charge shall be made to a Holder for any registration of
transfer or exchange of Notes, but the Issuer may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
connection with any registration of transfer or exchange of Notes, other than
exchanges pursuant to SECTION 2.3 or 2.5 not involving any transfer.

         Notwithstanding anything else to the contrary contained herein, the
obligation of the Issuer to pay the principal of and interest on the Notes is
not a general obligation of the Issuer or any other Person, but is limited
solely to the Collateral pledged hereunder.

         SECTION 2.5. MUTILATED, DESTROYED, LOST OR STOLEN NOTES. If (i) any
mutilated Note is surrendered to the Indenture Trustee, or the Indenture Trustee
receives evidence to its satisfaction of the destruction, loss or theft of any
Note, and (ii) there is delivered to the Indenture Trustee such security or
indemnity as may be required by the Indenture Trustee and the Issuer to hold the
Indenture Trustee and the Issuer, respectively, harmless, then, in the absence
of notice to the Issuer, the Note Registrar or the Indenture Trustee that such
Note has been acquired by a bona fide purchaser, and provided that the
requirements of SECTION 8-405 of the UCC are met, the Issuer shall execute, and
upon its written request the Indenture Trustee shall authenticate and deliver,
in exchange for or in lieu of any such mutilated, destroyed, lost or stolen
Note, a replacement Note; PROVIDED, HOWEVER, that if any such destroyed, lost or
stolen Note, but not a mutilated Note, shall have become, or within fifteen days
shall be, due and payable, or shall have been called for redemption, instead of
issuing a replacement Note, the Issuer may pay such destroyed, lost or stolen
Note when so due or payable or upon the Redemption Date without surrender
thereof. If, after the delivery of such replacement Note (or payment of a
destroyed, lost or stolen Note pursuant to the proviso to the preceding
sentence), a bona fide purchaser of the original Note in lieu of which such
replacement Note was issued presents for payment such original Note, the Issuer
and the Indenture Trustee shall be entitled to recover such replacement Note (or
such payment) from the Person to whom it was delivered or any Person taking such
replacement Note from such Person to whom such replacement Note was delivered

                                      -4-
<PAGE>   10

(or payment made) or any assignee of such Person, except a bona fide purchaser,
and shall be entitled to recover upon the security or indemnity provided
therefor to the extent of any loss, damage, cost or expense (including
reasonable attorneys' fees and costs) incurred by the Issuer or the Indenture
Trustee in connection therewith.

         Every replacement Note issued pursuant to this Section in replacement
of any mutilated, destroyed, lost or stolen Note shall constitute an original
additional contractual obligation of the Issuer, whether or not the mutilated,
destroyed, lost or stolen Note shall be at any time enforceable by anyone, and
shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Notes duly issued hereunder.

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

         SECTION 2.6. PERSONS DEEMED OWNER. Prior to due presentment for
registration of transfer of any Note, the Issuer, the Indenture Trustee and any
of their respective agents may treat the Person in whose name any Note is
registered (as of the day of determination) as the owner of such Note for the
purpose of receiving payments of principal of and interest, if any, on such Note
and for all other purposes whatsoever, whether or not such Note be overdue, and
neither the Issuer, the Indenture Trustee nor any agent thereof shall be
affected by notice to the contrary.

         SECTION 2.7. PAYMENT OF PRINCIPAL AND INTEREST - DEFAULTED INTEREST.
(a) The Class A Notes shall accrue interest at the Class A Note Rate and the
Class B Notes shall accrue interest at the Class B Note Rate, and such interest
shall be payable on each Payment Date, subject to SECTION 3.1. Any installment
of interest or principal, if any, payable on any Note that is punctually paid or
duly provided for by or on behalf of the Issuer on the applicable Payment Date
shall be paid to the Person in whose name such Note (or one or more Predecessor
Notes) is registered on the Record Date, by wire transfer of immediately
available funds, or (if such Person has not delivered to the Indenture Trustee
in writing instructions with respect to effecting a wire transfer to such
Person) by check mailed first-class, postage prepaid, to such Person's address
as it appears on the Note Register on such Record Date. Notwithstanding the
above, the final installment of principal payable with respect to the Notes (and
except for the Redemption Price for any Note called for redemption pursuant to
SECTION 10.1) shall be payable as provided in SECTION 2.7(B)(II). The funds
represented by any such checks returned undelivered shall be held in accordance
with SECTION 3.3.

         (b) (i) The principal of each Note shall be payable on each Payment
Date as and to the extent provided in this Indenture and SECTION 2.11 of the
Sale and Servicing Agreement. Not in limitation of the foregoing, (A) the entire
Outstanding Amount of the Notes shall be due and payable on the date following
the occurrence and during the continuance of an Event of Default on which the
Notes have been declared due and payable in the manner provided in SECTION 5.2;
(B) the entire Outstanding Amount of the Class A Notes, if any, shall be due and
payable on and after the Class A Note Final Scheduled Maturity Date; and (C) the
entire Outstanding Amount of the Class B Notes, if any, shall be due and payable
on and after the Class B Note Final Scheduled Maturity Date. All principal
payments on each Class of Notes shall be made in accordance with Section 2.11 of
the Sale and Servicing Agreement.

                                      -5-
<PAGE>   11

                  (ii) The Indenture Trustee shall notify the Person in whose
         name a Note is registered at the close of business on the Record Date
         preceding the Payment Date on which the Issuer expects that the final
         installment of principal of and interest on such Note will be paid.
         Such notice shall be mailed no later than five days prior to such final
         Payment Date and shall specify that such final installment will be
         payable only upon presentation and surrender of such Note and shall
         specify the place where such Note may be presented and surrendered for
         payment of such installment. Notices in connection with redemptions of
         Notes shall be mailed to Noteholders as provided in SECTION 10.2.

         (c) If the Issuer defaults in a payment of interest on the Notes, the
Issuer shall pay, in any lawful manner, defaulted interest (plus interest on
such defaulted interest to the extent lawful) at the applicable interest rate
from the Payment Date for which such payment is in default. The Issuer may pay
such defaulted interest to the Persons who are Noteholders on a subsequent
Payment Date. The Indenture Trustee is not personally liable for any amounts
payable by the Issuer under this Indenture.

         SECTION 2.8. CANCELLATION. All Notes surrendered for payment,
registration of transfer, exchange or redemption shall be delivered to the
Indenture Trustee and shall be promptly canceled by the Indenture Trustee. The
Issuer may at any time deliver to the Indenture Trustee for cancellation any
Notes previously authenticated and delivered hereunder that the Issuer may have
acquired in any manner whatsoever, and all Notes so delivered shall be promptly
canceled by the Indenture Trustee. No Notes shall be authenticated in lieu of or
in exchange for any Notes canceled as provided in this Section except as
expressly permitted by this Indenture. All canceled Notes may be held or
disposed of by the Indenture Trustee in accordance with its standard retention
or disposal policy as in effect at the time unless the Issuer shall direct by an
Issuer Order that they be returned to it; PROVIDED, that such Issuer Order is
timely and the Notes have not been previously disposed of by the Indenture
Trustee.

         SECTION 2.9. RELEASE OF COLLATERAL. Subject to SECTION 11.1 and the
Transaction Documents, the Indenture Trustee shall release property from the
Lien of this Indenture only (i) upon receipt of an Issuer Request accompanied by
an Officer's Certificate and (ii) with the consent of the Facility
Administrator.

         SECTION 2.10. DEFINITIVE NOTES. The Notes, upon original issuance,
shall be issued in definitive, fully registered form ("DEFINITIVE NOTES").

         SECTION 2.11. TRANSFER RESTRICTIONS. (a) Each Noteholder, by its
acceptance of the Notes (or the obligations evidenced thereby), will be deemed
to have acknowledged, represented to and agreed with the Issuer, Bluegreen, the
Trust Depositor and their respective Affiliates as follows:

                  (i) Its Note is being acquired for investment purposes and
         without any view to, or for resale in connection with, the distribution
         thereof (or any interest therein) in violation of the Securities Act or
         any applicable blue sky laws (as defined below). Such Noteholder is
         either (i) a "qualified institutional buyer" (as defined in Rule 144A
         under the Securities Act) or (ii) an "accredited investor" (as defined
         in Regulation D under the Securities Act). It understands and
         acknowledges that the Notes have not been registered under the
         Securities Act or any other applicable securities law of any state or
         other jurisdiction ("BLUE SKY LAWS"), and may not be offered, sold or

                                      -6-
<PAGE>   12

         otherwise transferred except in compliance with the registration
         requirements of the Securities Act or any other applicable blue sky
         laws, pursuant to an exemption therefrom or in a transaction not
         subject thereto. Further, it understands and acknowledges that the
         Issuer in connection with the initial sale of the Notes, is relying on
         the exemption from registration provided in Section 4(2) of the
         Securities Act, the availability of which depends on the investment
         intent of the purchaser.

                  (ii) It is a sophisticated investor and has such knowledge and
         experience in financial and business matters so as to be capable of
         evaluating the merits and risks of such investment, is able to incur a
         complete loss of such investment and is able to bear the economic risk
         of such investment for an indefinite period of time. It acknowledges
         that neither the Issuer nor the Indenture Trustee nor any person
         representing or affiliated with any of the foregoing has made any
         representation to it with respect to the Issuer or any affiliate
         thereof or the offering or sale of any Notes; it acknowledges that it
         has had access to financial and other information concerning the Issuer
         or any affiliate thereof, the Collateral and the Notes, including an
         opportunity to ask questions of and request information from the
         Issuer, the Servicer and the Indenture Trustee.

                  (iii) In the case of resale transactions:

                           (A) (i) The prospective purchaser is a "qualified
                  institutional buyer" as defined in Rule 144A under the
                  Securities Act (a "QIB"), and is purchasing for its own
                  account (and not for the account of others) or as a fiduciary
                  or agent for others (which others also are QIBs) and has
                  executed a certificate substantially in the form attached as
                  EXHIBIT C. Due to the restrictions on transfer, it is aware
                  that it (or any account for which it is purchasing) may be
                  required to bear the economic risk of an investment in the
                  Notes for an indefinite period, and it (or such account) is
                  able to bear such risk for an indefinite period. It
                  acknowledges that it has received the information specified in
                  paragraph (d)(4) of Rule 144A under the Securities Act; or
                  (ii) the prospective purchaser is an "accredited investor"
                  within the meaning of Regulation D under the Securities Act,
                  and is purchasing the Note for investment purposes and without
                  any view to, or for resale in connection with, the
                  distribution thereof in violation of the Securities Act and
                  has executed a certificate substantially in the form attached
                  as EXHIBIT C.

                           (B) If such transaction is not made in reliance on
                  Rule 144A, the transferor has delivered a certificate
                  substantially in the form attached as EXHIBIT D.

                  (iv) No resale, pledge or other transfer of any Note may be
         made by any person unless either (i) so long as the Notes are eligible
         for resale pursuant to Rule 144A under the Securities Act, such resale,
         pledge or other transfer is made to a Person whom the seller reasonably
         believes after due inquiry is a QIB acting for its own account (and not
         for the account of others) or as a fiduciary or agent for others (which

                                      -7-
<PAGE>   13

         others also are QIBs) to whom notice is given that the resale, pledge
         or transfer is being made in reliance on Rule 144A under the Securities
         Act and the transaction is in compliance with and exempt from
         registration under Rule 144A or (ii) such resale, pledge or other
         transfer is made in a transaction exempt from the registration
         requirements of the Securities Act and all applicable blue sky laws in
         which case the Indenture Trustee will require (a) that both the
         prospective transferor and the prospective transferee certify to the
         Issuer and the Indenture Trustee in writing the facts surrounding such
         transfer, which certification shall be in form and substance
         satisfactory to the Issuer, and (b) a written opinion of counsel (which
         shall not be at the expense of the Issuer, the Servicer or the
         Indenture Trustee) satisfactory to the Indenture Trustee and the Issuer
         to the effect that such transfer will not violate the Securities Act or
         any applicable blue sky laws.

The foregoing representations shall also be applicable to any sale, pledge or
other transfer of a beneficial or other interest in any Note.

         (b) Each Noteholder by its acquisition of any Notes (or a beneficial or
other interest therein) shall be deemed to have represented and warranted for
the benefit of the Issuer, the Trust Depositor, the Servicer, the Indenture
Trustee and the Noteholders, that the Notes (or a beneficial or other interest
therein) are not being acquired by or for the account of (i) an "employee
benefit plan" (as defined in SECTION 3(3) of ERISA), that is subject to Title I
of ERISA, (ii) a "plan" as defined in SECTION 4975(E)(1) of the Internal Revenue
Code or (iii) any entity whose underlying assets include plan assets by reason
of a plan's investment in the entity (each, a "BENEFIT PLAN") unless the
purchase and holding of the Notes will not give rise to a nonexempt prohibited
transaction under ERISA or the Internal Revenue Code.

         (c) The Notes will bear the following legends:

         "THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES
         ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR UNDER THE SECURITIES
         LAWS OF ANY STATE OR OTHER JURISDICTION ("BLUE SKY LAWS") OF THE UNITED
         STATES. BY ITS ACCEPTANCE OF THIS NOTE THE HOLDER OF THIS NOTE IS
         DEEMED TO REPRESENT TO THE INDENTURE TRUSTEE, THE ISSUER AND THE
         SERVICER THAT IT (i) IS A "QUALIFIED INSTITUTIONAL BUYER" WITHIN THE
         MEANING OF RULE 144A UNDER THE SECURITIES ACT (A "QIB") AND IS
         ACQUIRING SUCH NOTE FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF
         OTHERS) OR AS A FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE
         QIBS) TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN
         RELIANCE ON RULE 144A OR (ii) IS OTHERWISE ACQUIRING THIS NOTE IN A
         TRANSACTION EXEMPT FROM THE SECURITIES ACT AND APPLICABLE BLUE SKY
         LAWS.

         NO RESALE, PLEDGE OR OTHER TRANSFER OF THIS NOTE (OR ANY INTEREST
         THEREIN) MAY BE MADE BY ANY PERSON UNLESS (i) SO LONG AS THIS NOTE IS
         ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT,
         SUCH RESALE, PLEDGE OR OTHER TRANSFER IS MADE TO A PERSON WHOM THE
         TRANSFEROR REASONABLY BELIEVES AFTER DUE INQUIRY IS A QIB ACTING FOR
         ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A FIDUCIARY

                                      -8-
<PAGE>   14

         OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE QIBs) TO WHOM NOTICE IS
         GIVEN THAT THE RESALE, PLEDGE OR TRANSFER IS BEING MADE IN RELIANCE ON
         RULE 144A AND, IN ANY CASE, IN TRANSACTIONS UNDER AND IN COMPLIANCE
         WITH RULE 144A OR (ii) SUCH RESALE, PLEDGE OR OTHER TRANSFER IS
         OTHERWISE MADE IN A TRANSFER EXEMPT FROM THE REGISTRATION REQUIREMENTS
         OF THE SECURITIES ACT AND APPLICABLE BLUE SKY LAWS, IN WHICH CASE THE
         INDENTURE TRUSTEE SHALL REQUIRE (A) THAT BOTH THE PROSPECTIVE
         TRANSFEROR AND THE PROSPECTIVE TRANSFEREE CERTIFY TO THE ISSUER IN
         WRITING THE FACTS SURROUNDING SUCH TRANSFER, WHICH CERTIFICATION SHALL
         BE IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER, AND (B) A WRITTEN
         OPINION OF COUNSEL (WHICH SHALL NOT BE AT THE EXPENSE OF THE ISSUER,
         THE SERVICER OR THE INDENTURE TRUSTEE) SATISFACTORY TO THE INDENTURE
         TRUSTEE AND THE ISSUER TO THE EFFECT THAT SUCH TRANSFER WILL NOT
         VIOLATE THE SECURITIES ACT OR APPLICABLE BLUE SKY LAWS. ANY ATTEMPTED
         TRANSFER IN CONTRAVENTION OF THE IMMEDIATELY PRECEDING RESTRICTIONS
         WILL BE VOID AB INITIO AND THE PURPORTED TRANSFEROR WILL CONTINUE TO BE
         TREATED AS THE OWNER OF THE NOTES FOR ALL PURPOSES. THE PROSPECTIVE
         TRANSFEROR AND PROSPECTIVE TRANSFEREE, JOINTLY AND SEVERALLY, AGREE TO
         INDEMNIFY THE ISSUER, THE INDENTURE TRUSTEE, BLUEGREEN CORPORATION, THE
         TRUST DEPOSITOR AND THEIR RESPECTIVE AFFILIATES AGAINST ANY LIABILITY
         SUCH PERSON MAY SUFFER AS A RESULT OF A TRANSFER OF A NOTE NOT IN
         COMPLIANCE WITH ALL APPLICABLE SECURITIES LAWS.

         THIS NOTE (AND ANY INTEREST HEREIN) MAY NOT BE ACQUIRED BY OR FOR THE
         ACCOUNT OF (i) AN "EMPLOYEE BENEFIT PLAN" (AS DEFINED IN SECTION 3(3)
         OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED,
         ("ERISA")), THAT IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA, (ii)
         A PLAN DESCRIBED IN SECTION 4975(e)(1) OF THE CODE OR (iii) ANY ENTITY
         WHOSE UNDERLYING ASSETS INCLUDE PLAN ASSETS BY REASON OF A PLAN'S
         INVESTMENT IN THE ENTITY UNLESS THE PURCHASE AND HOLDING OF THE NOTE
         WILL NOT GIVE RISE TO A NONEXEMPT PROHIBITED TRANSACTION UNDER ERISA OR
         THE CODE. BY ACCEPTING AND HOLDING THIS NOTE (OR ANY INTEREST HEREIN),
         THE HOLDER HEREOF SHALL BE DEEMED TO HAVE REPRESENTED AND WARRANTED
         THAT EITHER (A) IT IS NOT A BENEFIT PLAN OR (B) SUCH PURCHASE AND
         HOLDING WILL NOT RE'SULT IN A NONEXEMPT PROHIBITED TRANSACTION UNDER
         SECTION 406(A) OF ERISA OR SECTION 4975 OF THE CODE."

                                      -9-
<PAGE>   15

         SECTION 2.12. CUSIP NUMBERS. The Issuer in issuing the Notes may use
"CUSIP" or "private placement" numbers (if then generally in use), and, if so,
the Indenture Trustee shall indicate the "CUSIP" or "private placement" numbers
of the Notes in notices of redemption and related materials as a convenience to
Holders of Notes; provided that any such notice may state that no representation
is made as to the correctness of such numbers either as printed on the Notes or
as contained in any notice of redemption and related materials.

                                  ARTICLE III

                    COVENANTS; REPRESENTATIONS AND WARRANTIES

         SECTION 3.1. PAYMENT OF PRINCIPAL AND INTEREST. The Indenture Trustee
will duly and punctually pay the principal and interest, if any, on the Notes in
accordance with the terms of SECTION 2.11 of the Sale and Servicing Agreement
and this Indenture. Without limiting the foregoing, the Issuer will cause to be
distributed all Available Amounts on deposit in the Collection Account on a
Payment Date deposited therein in accordance with the terms of the Sale and
Servicing Agreement. Amounts properly withheld under the Code or any applicable
state law by the Issuer, the Indenture Trustee or any other Paying Agent from a
payment to any Noteholder of interest and/or principal shall be paid over to the
applicable Governmental Authority and shall be considered as having been paid by
the Issuer to such Noteholder for all purposes of this Indenture.

         SECTION 3.2. MAINTENANCE OF OFFICE OR AGENCY. The Issuer will maintain
in St. Paul, Minnesota, an office or agency where Notes may be surrendered for
registration of transfer or exchange, and where notices and demands to or upon
the Issuer in respect of the Notes and this Indenture may be served. The Issuer
hereby initially appoints the Indenture Trustee to serve as its agent for the
foregoing purposes and the Indenture Trustee accepts such appointment. The
Issuer will give prompt written notice to the Indenture Trustee and the Facility
Administrator of the location, and of any change in the location, of any such
office or agency. If at any time the Issuer shall fail to maintain any such
office or agency or shall fail to furnish the Indenture Trustee and the Facility
Administrator with the address thereof, such surrenders, notices and demands may
be made or served at the Corporate Trust Office, and the Issuer hereby appoints
the Indenture Trustee as its agent to receive all such surrenders, notices and
demands and the Indenture Trustee accepts such appointment.

         SECTION 3.3. MONEY FOR PAYMENTS TO BE HELD IN TRUST. As provided in
SECTION 8.2, all payments of amounts due and payable with respect to any Notes
that are to be made from amounts withdrawn from the Collection Account pursuant
to SECTION 8.2 shall be made on behalf of the Issuer by the Indenture Trustee or
by another Paying Agent, and no amounts so withdrawn from the Collection Account
for payments of Notes shall be paid over to the Issuer except as provided in
this Section and SECTION 2.11 of the Sale and Servicing Agreement.

         On or before each Payment Date and Redemption Date, the Issuer shall
deposit or cause the Servicer to deposit in the Collection Account to the extent
of Available Amounts, an aggregate sum sufficient to pay the amounts then
becoming due under the Notes as and to the extent required by SECTION 2.11 of

                                      -10-
<PAGE>   16

the Sale and Servicing Agreement, such sum to be held in trust for the benefit
of the Persons entitled thereto, and shall promptly notify in writing the
Facility Administrator and the Indenture Trustee (unless the Paying Agent is the
Indenture Trustee) of its action or failure so to act.

         The Issuer will cause each Paying Agent other than the Indenture
Trustee, if any, to execute and deliver to the Facility Administrator and the
Indenture Trustee an instrument in which such Paying Agent shall agree with the
Indenture Trustee (and if the Indenture Trustee acts as Paying Agent, it hereby
so agrees), subject to the provisions of this Section, that such Paying Agent
will:

                  (i) hold all sums held by it for the payment of amounts due
         with respect to the Notes in trust for the benefit of the Persons
         entitled thereto until such sums shall be paid to such Persons or
         otherwise disposed of as herein provided and pay such sums to such
         Persons as herein provided;

                  (ii) give the Indenture Trustee and the Facility Administrator
         notice of any default by the Issuer of which it has actual knowledge in
         the making of any payment required to be made with respect to the
         Notes;

                  (iii) at any time during the continuance of any such default,
         upon the written request of the Indenture Trustee, forthwith pay to the
         Indenture Trustee all sums so held in trust by such Paying Agent;

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

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

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

         Subject to applicable laws with respect to escheat of funds, any money
held by the Indenture Trustee or any Paying Agent in trust for the payment of
any amount due with respect to any Note and remaining unclaimed for two years
after such amount has become due and payable shall be discharged from such trust
and be paid to the Issuer on Issuer Request; and the Holder of such Note shall
thereafter, as an unsecured general creditor and subject to all defenses
available to the Issuer under all applicable laws, look only to the Issuer for
payment thereof (but only to the extent of the amounts so paid to the Issuer),
and all liability of the Indenture Trustee or such Paying Agent with respect to
such trust money shall thereupon cease.

                                      -11-
<PAGE>   17

         SECTION 3.4. EXISTENCE. The Issuer will keep in full effect its
existence, rights and franchises as a business trust under the laws of the
jurisdiction of its organization and will obtain and preserve its qualification
to do business in each jurisdiction in which such qualification is or shall be
necessary to protect the validity and enforceability of this Indenture, the
Notes and the Collateral.

         SECTION 3.5. PROTECTION OF THE COLLATERAL. The Issuer intends the
security interest granted pursuant to this Indenture in favor of the Indenture
Trustee on behalf of the Noteholders to be prior to all other Liens (other than
Permitted Liens) in respect of the Collateral and the Issuer shall take all
action necessary to obtain and maintain for the benefit of the Indenture Trustee
on behalf of the Noteholders the first Lien on and a first priority perfected
security interest (other than Permitted Liens) in the Collateral. The Issuer
will from time to time execute and deliver all such supplements and amendments
hereto and all such financing statements, continuation statements, instruments
of further assurance and other instruments, and will take such other action
necessary or advisable to:

                  (i) Grant more effectively all or any portion of the
         Collateral;

                  (ii) maintain or preserve the Lien and security interest (and
         the priority thereof) of this Indenture or carry out more effectively
         the purposes hereof;

                  (iii) perfect, publish notice of or protect the validity of
         any Grant made or to be made by this Indenture;

                  (iv) enforce any rights under or with respect to the
         Collateral;

                  (v) preserve and defend title to the Collateral and the rights
         of the Indenture Trustee and the Noteholders in such Collateral against
         the claims of all Persons; or

                  (vi) pay all taxes or assessment levied or assessed upon the
         Collateral when due.

The Issuer hereby designates the Indenture Trustee as its agent and
attorney-in-fact to execute any financing statement, continuation statement,
instrument of further assurance or other instrument required to be executed to
accomplish the foregoing. In no event shall the Indenture Trustee be responsible
for filing or maintaining such financing statements, continuation statements,
instruments of further assurance or other instruments.

         SECTION 3.6. INTENTIONALLY OMITTED.

         SECTION 3.7. PERFORMANCE OF OBLIGATIONS; SERVICING OF RECEIVABLES. (a)
The Issuer will not take any action and will use commercially reasonable efforts
not to permit any action to be taken by others that would release any Person
from any material covenants or obligations under any instrument or agreement
included in the Collateral or that would result in the amendment, hypothecation,
subordination, termination or discharge of, or impair the validity or
effectiveness of, any such instrument or agreement, except as expressly provided
in this Indenture, the Sale and Servicing Agreement or any other Transaction
Document.

                                      -12-
<PAGE>   18

         (b) The Issuer may contract with other Persons (acceptable to the
Facility Administrator) to assist it in performing its duties under this
Indenture, and any performance of such duties by a Person identified to the
Indenture Trustee and the Facility Administrator in an Officer's Certificate of
the Issuer shall be deemed to be action taken by the Issuer. Initially, the
Issuer has contracted with the Servicer and the Trust Administrator to assist
the Issuer in performing its duties under this Indenture.

         (c) The Issuer will punctually perform and observe all of its
obligations and agreements contained in this Indenture, the Transaction
Documents and in the instruments and agreements included in the Collateral,
including filing or causing to be filed all UCC financing statements and
continuation statements required to be filed by this Indenture and the Sale and
Servicing Agreement in accordance with and within the time periods provided for
herein and therein.

         (d) If the Issuer shall have knowledge of the occurrence of a Servicer
Termination Event or Termination Event, the Issuer shall promptly notify the
Indenture Trustee and the Facility Administrator in writing thereof, and shall
specify in such notice the action, if any, the Issuer is taking with respect to
such default.

         (e) As promptly as possible after the giving of notice of termination
to the Servicer of the Servicer's rights and powers pursuant to Article Eight of
the Sale and Servicing Agreement, the Back-Up Servicer shall be appointed in
accordance with Article Eight of the Sale and Servicing Agreement. In the event
that the Back-Up Servicer is unable to act as the Successor Servicer at the time
when the previous Servicer ceases to act as Servicer, the Indenture Trustee
without further action shall automatically be appointed the Successor Servicer
under the Sale and Servicing Agreement. The Indenture Trustee may resign as the
Servicer by giving written notice of such resignation to the Issuer and the
Facility Administrator and in such event will be released from such duties and
obligations, such release not to be effective until the date a Successor
Servicer enters into a servicing agreement with the Issuer as provided below.
Upon delivery of any such notice to the Issuer and the Facility Administrator,
the Issuer shall obtain a new Servicer acceptable to Holders holding at least a
majority of the Outstanding Amount of each Class of Notes as the Successor
Servicer. Any Successor Servicer other than the Indenture Trustee shall: (i) be
an established financial institution having a net worth of not less than
$50,000,000 and whose regular business includes the servicing of receivables and
(ii) enter into a servicing agreement with the Issuer having substantially the
same provisions as the provisions of the Sale and Servicing Agreement applicable
to the Servicer. If within 30 days after the delivery of the notice referred to
above, the Issuer shall not have obtained such a Successor Servicer, Holders
holding at least a majority of the Outstanding Amount of each Class of Notes may
appoint, or may petition a court of competent jurisdiction to appoint, a
Successor Servicer. In connection with any such appointment, Holders holding at
least a majority of the Outstanding Amount of each Class of Notes may make such
arrangements for the compensation of such Successor Servicer as they and such
Successor Servicer shall agree, subject to the limitations set forth below and
in the Sale and Servicing Agreement, and in accordance with Article Eight of the
Sale and Servicing Agreement, the Issuer shall enter into an agreement with such

                                      -13-
<PAGE>   19

Successor Servicer for the servicing of the Receivables (such agreement to be in
form and substance satisfactory to the Issuer and the Facility Administrator).
If the Indenture Trustee shall succeed to the previous Servicer's duties as
Servicer of the Receivables as provided herein, it shall do so in its individual
capacity and not in its capacity as Indenture Trustee and, accordingly, the
provisions of Article VI hereof shall be inapplicable to the Indenture Trustee
in its duties as the Successor Servicer and the servicing of the Receivables. In
case the Indenture Trustee shall become the Successor Servicer under the Sale
and Servicing Agreement, the Indenture Trustee shall be entitled to appoint as
Servicer any one of its Affiliates, provided, that it shall be fully liable for
the actions and omissions of any such Affiliate in its capacity as Successor
Servicer unless the Issuer and the Facility Administrator shall have consented
in writing to the appointment of such Affiliate, which consent shall not be
unreasonably withheld.

         (f) Upon any termination of the Servicer's rights and powers pursuant
to the Sale and Servicing Agreement, the Issuer shall promptly notify the
Indenture Trustee and the Facility Administrator in writing. As soon as a
Successor Servicer is appointed, the Issuer shall notify the Indenture Trustee
and the Facility Administrator of such appointment, specifying in such notice
the name and address of such Successor Servicer.

         (g) Without derogating from the absolute nature of the Grant of
Collateral under this Indenture or the rights of the Indenture Trustee
hereunder, the Issuer agrees that it will not, without the prior written consent
of the Holders holding at least a majority of the Outstanding Amount of each
Class of Notes, amend, modify, waive, supplement, terminate or surrender, or
agree to any amendment, modification, supplement, termination, waiver or
surrender of, the terms of any Collateral (except to the extent otherwise
provided in the Sale and Servicing Agreement) or the Transaction Documents, or
waive timely performance or observance by the Servicer, the Trust Depositor or
the Sellers under the Sale and Servicing Agreement; PROVIDED, HOWEVER, that no
such amendment shall: (i) increase or reduce in any manner the amount of, or
accelerate or delay the timing of, distributions that are required to be made
for the benefit of the Noteholders, or (ii) reduce the aforesaid percentage of
the Notes that are required to consent to any such amendment, in either case
without the consent of the Holders of all the Outstanding Notes. If any such
amendment, modification, supplement or waiver shall be so consented to by the
Facility Administrator or such Holders, the Issuer agrees, promptly following a
request by the Facility Administrator to do so, to execute and deliver, in its
own name and at its own expense, such agreements, instruments, consents and
other documents as the Facility Administrator may deem necessary or appropriate
in the circumstances.

         SECTION 3.8. NEGATIVE COVENANTS. So long as any Notes are Outstanding,
the Issuer shall not:

                  (i) except as expressly permitted by this Indenture or the
         Sale and Servicing Agreement, sell, transfer, exchange or otherwise
         dispose of any of the properties or assets of the Issuer, including
         those included in the Collateral;

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

                                      -14-
<PAGE>   20

                  (iii) (A) permit the validity or effectiveness of this
         Indenture to be impaired, or permit the Lien of this Indenture to be
         amended, hypothecated, subordinated, terminated or discharged, or
         permit any Person to be released from any covenants or obligations with
         respect to the Notes under this Indenture except as may be expressly
         permitted hereby, or by the Sale and Servicing Agreement or any other
         Transaction Document, (B) permit any Lien (other than the Lien of this
         Indenture or Permitted Liens) to be created on or extend to or
         otherwise arise upon or burden the Collateral or any part thereof or
         any interest therein or the proceeds thereof or (C) permit the Lien of
         this Indenture not to constitute a valid first priority (other than
         with respect to any Permitted Lien or other tax lien, mechanics' lien
         or other lien not considered a Lien) security interest in the
         Collateral.

         SECTION 3.9. ISSUER MAY CONSOLIDATE, ETC., ONLY ON CERTAIN TERMS. (a)
The Issuer shall not consolidate or merge with or into any other Person, unless:

                  (i) the Person (if other than the Issuer) formed by or
         surviving such consolidation or merger shall be a Person organized and
         existing under the laws of the United States of America or any State
         and shall expressly assume, by an indenture supplemental hereto (in
         form satisfactory to the Facility Administrator), executed and
         delivered to the Indenture Trustee and the Facility Administrator, the
         due and punctual payment of the principal of and interest on all Notes
         and the performance or observance of every agreement and covenant of
         this Indenture on the part of the Issuer to be performed or observed,
         all as provided herein;

                  (ii) immediately after giving effect to such transaction, no
         Default or Event of Default shall have occurred and be continuing;

                  (iii) the Issuer shall have received an Opinion of Counsel
         (and shall have delivered copies thereof to the Indenture Trustee and
         the Facility Administrator) to the effect that such transaction will
         not have any material adverse consequence (tax or otherwise) to the
         Issuer or any Noteholder;

                  (iv) any action that is necessary to maintain the Lien and
         security interest created by this Indenture shall have been taken;

                  (v) the Issuer shall have delivered to the Indenture Trustee
         and the Facility Administrator an Officer's Certificate and an Opinion
         of Counsel each stating that such consolidation or merger and such
         supplemental indenture comply with this ARTICLE III and that all
         conditions precedent herein provided for relating to such transaction
         have been complied with (including, if applicable, any filing required
         under the Exchange Act);

                  (vi) the Person (if other than the Issuer) formed by or
         surviving such consolidation or merger has a net worth, immediately
         after such consolidation or merger, that is (A) greater than zero and
         (b) not less than the net worth of the Issuer immediately prior to
         giving effect to such consolidation or merger; and

                  (vii) the Noteholders shall have consented thereto in writing.

                                      -15-
<PAGE>   21

         (b) Except as specifically contemplated by or permitted under the
Transaction Documents, the Issuer shall not convey or transfer any of its
properties including those included in the Collateral, to any Person, unless:

                  (i) the Person that acquires by conveyance or transfer the
         properties and assets of the Issuer the conveyance or transfer of which
         is hereby restricted shall: (A) be a United States citizen or a Person
         organized and existing under the laws of the United States of America
         or any State, (B) expressly assume, by an indenture supplemental
         hereto, executed and delivered to the Indenture Trustee and the
         Facility Administrator, in form satisfactory to the Facility
         Administrator, the due and punctual payment of the principal of and
         interest on all Notes and the performance or observance of every
         agreement and covenant of this Indenture on the part of the Issuer to
         be performed or observed, all as provided herein, (C) expressly agree
         by means of such supplemental indenture that all right, title and
         interest so conveyed or transferred shall be subject and subordinate to
         the rights of Holders of the Notes and the Facility Administrator as
         set forth herein, (D) unless otherwise provided in such supplemental
         indenture, expressly agree to indemnify, defend and hold harmless the
         Issuer against and from any loss, liability or expense arising under or
         related to this Indenture and the Notes and (E) if applicable,
         expressly agrees by means of such supplemental indenture that such
         Person (or if a group of Persons, then one specified Person) shall make
         all filings with the Commission (and any other appropriate Person)
         required by the Exchange Act in connection with the Notes;

                  (ii) immediately after giving effect to such transaction, no
         Default or Event of Default shall have occurred and be continuing;

                  (iii) the Issuer shall have received an Opinion of Counsel
         (and shall have delivered copies thereof to the Indenture Trustee and
         the Facility Administrator) to the effect that such transaction will
         not have any material adverse consequence (tax or otherwise) to the
         Issuer or any Noteholder;

                  (iv) any action that is necessary to maintain the Lien and
         security interest created by this Indenture shall have been taken;

                  (v) the Issuer shall have delivered to the Indenture Trustee
         and the Facility Administrator an Officer's Certificate and an Opinion
         of Counsel each stating that such conveyance or transfer and such
         supplemental indenture comply with this Article and that all conditions
         precedent herein provided for relating to such transaction have been
         complied with (including, if applicable, any filing required under the
         Exchange Act);

                  (vi) the Issuer has a net worth, immediately after such
         conveyance or transfer, that is (A) greater than zero and (B) not less
         than the net worth of the Issuer immediately prior to giving effect to
         such conveyance or transfer; and

                  (vii) the Noteholders shall have consented thereto in writing.

         SECTION 3.10. SUCCESSOR OR TRANSFEREE. (a) Upon any consolidation or
merger of the Issuer in accordance with SECTION 3.9(A), the Person formed by or
surviving such consolidation or merger (if other than the Issuer) shall succeed

                                      -16-
<PAGE>   22

to, and be substituted for, and may exercise every right and power of, the
Issuer under this Indenture with the same effect as if such Person had been
named as the Issuer herein.

         (b) Upon a conveyance or transfer of all the assets and properties of
the Issuer pursuant to SECTION 3.9(B), the Issuer will be released from every
covenant and agreement of this Indenture to be observed or performed on the part
of the Issuer with respect to the Notes immediately upon the delivery of written
notice to the Indenture Trustee, the Noteholders and the Facility Administrator
stating that the Issuer is to be so released.

         SECTION 3.11. NO OTHER BUSINESS. The Issuer shall not engage in any
business other than financing, purchasing, owning, selling and managing of the
Receivables in the manner contemplated by this Indenture and the Transaction
Documents and activities incidental thereto.

         SECTION 3.12. NO BORROWING. The Issuer shall not issue, incur, assume,
guarantee or otherwise become liable, directly or indirectly, for any
indebtedness secured by the Collateral, except for the Notes.

         SECTION 3.13. SERVICER'S OBLIGATIONS. The Issuer shall use commercially
reasonable efforts to cause the Servicer to comply with its obligations under
the Sale and Servicing Agreement.

         SECTION 3.14. GUARANTEES, LOANS, ADVANCES AND OTHER LIABILITIES. Except
as contemplated by this Indenture and the other Transaction Documents, the
Issuer shall not make any loan or advance or credit to, or guarantee (directly
or indirectly or by an instrument having the effect of assuring another's
payment or performance on any obligation or capability of so doing or
otherwise), endorse or otherwise become contingently liable, directly or
indirectly, in connection with the obligations, stocks or dividends of, or own,
purchase, repurchase or acquire (or agree contingently to do so) any stock,
obligations, assets or securities of, or any other interest in, or make any
capital contribution to, any other Person.

         SECTION 3.15. CAPITAL EXPENDITURES. The Issuer shall not make any
expenditure (by long-term or operating lease or otherwise) for capital assets
(either realty or personalty).

         SECTION 3.16. NOTICE OF DEFAULTS AND EVENTS OF DEFAULT. The Issuer
shall give the Indenture Trustee and the Facility Administrator prompt written
notice of each Default and Event of Default (of which it has actual knowledge)
hereunder and each default of which it has actual knowledge on the part of the
Servicer or the Seller of its obligations under the Sale and Servicing
Agreement.

         SECTION 3.17. FURTHER INSTRUMENTS AND ACTS. Upon request of the
Indenture Trustee or the Facility Administrator, the Issuer will execute and
deliver such further instruments and do such further acts as may be reasonably
necessary or proper to carry out more effectively the purpose of this Indenture.

         SECTION 3.18. COMPLIANCE WITH LAWS. The Issuer shall comply with the
requirements of all applicable laws, the non-compliance with which would,
individually or in the aggregate, materially and adversely affect the ability of

                                      -17-
<PAGE>   23

the Issuer to perform its obligations under the Notes, this Indenture or any
other Transaction Document.

         SECTION 3.19. TAX TREATMENT. The Issuer has structured this Indenture
and the Notes with the intention that the Notes will qualify under applicable
federal, state and local tax law as indebtedness. The Issuer and each Holder
agrees to treat, and take no action inconsistent with the treatment of, the
Notes (or any beneficial interest therein) as indebtedness for purposes of
federal, state and local income or franchise taxes and any other tax imposed on
or measured by income. Each Holder, by acquisition of a beneficial interest in a
Note, agrees to be bound by the provisions of this SECTION 3.19.

         SECTION 3.20. INVESTMENT COMPANY ACT. The Issuer shall conduct its
operations in a manner that will not subject it to registration as an
"investment company" under the Investment Company Act of 1940, as amended.

         SECTION 3.21. CONDUCT OF BUSINESS. The Issuer shall (a) conduct its
business solely in its own name through its duly authorized officers or agents
so as not to mislead others as to the identity of the Issuer with which those
others are concerned, and particularly shall use its best efforts to avoid the
appearance of conducting business on behalf of the Sellers or any Affiliate
thereof or that the assets of the Issuer are available to pay the creditors of
the Sellers or any Affiliate thereof or any other entity; (b) maintain records
and books of account separate from those of the Sellers or any Affiliate thereof
or any other entity; (c) use its best efforts to maintain an arm's-length
relationship with the Sellers or any Affiliate thereof and shall not hold itself
out as being liable for the debts of the Sellers or any Affiliate thereof or any
other entity; (d) use its best efforts to keep its assets and its liabilities
wholly separate from those of all other entities, including the Sellers or any
Affiliate thereof, except as otherwise anticipated by the Transaction Documents;
(e) not maintain bank accounts or other depository accounts to which any
Affiliate is an account party, into which any Affiliate makes deposits or from
which any Affiliate has the power to make withdrawals, except as otherwise
permitted by the Sale and Servicing Agreement; (f) shall obtain proper
authorization for all the Issuer's actions requiring such authorization; (g)
shall obtain proper authorization from the Sellers for all action requiring
approval of the Sellers; (h) shall pay operating expenses and liabilities from
the Issuer's own funds; (i) shall disclose in its annual financial statements
the effects of the Issuer's transactions under the Transaction Documents in
accordance with generally accepted accounting principles and shall disclose that
the assets of the Issuer are not available to pay creditors of the Sellers; and
(j) shall continuously maintain the resolutions, agreements and other
instruments underlying the transactions described in the Transaction Documents
as official records.

         SECTION 3.22. ANNUAL STATEMENT AS TO COMPLIANCE. The Issuer will
deliver to the Indenture Trustee and the Facility Administrator, within 120 days
after the end of each fiscal year of the Issuer (commencing with the fiscal year
ended December 31, 2000), an Officer's Certificate, substantially in the form of
EXHIBIT B, stating that:

                  (i) a review of the activities of the Issuer during such year
         and of performance under this Indenture has been made under such
         Authorized Officers' supervision; and

                                      -18-
<PAGE>   24

                  (ii) to the best of such Authorized Officers' knowledge, based
         on such review, the Issuer has complied with all conditions and
         covenants under this Indenture throughout such year or, if there has
         been a default in the compliance of any such condition or covenant,
         specifying each such default known to such Authorized Officers and the
         nature and status thereof.

         SECTION 3.23. REPRESENTATIONS AND WARRANTIES OF THE ISSUER. The Issuer
represents and warrants as follows:

         (a) POWER AND AUTHORITY. It has full power, authority and legal right
to execute, deliver and perform its obligations as Issuer under this Indenture
and the Notes (the foregoing documents, the "ISSUER DOCUMENTS").

         (b) DUE AUTHORIZATION. The execution and delivery of the Issuer
Documents and the consummation of the transactions provided for therein have
been duly authorized by all necessary action on its part.

         (c) NO CONFLICT. The execution and delivery of the Issuer Documents,
the performance of the transactions contemplated thereby and the fulfillment of
the terms thereof will not conflict with, result in any breach of any of the
materials terms and provisions of, or constitute (with or without notice or
lapse of time or both) a default under, any indenture, contract, agreement,
mortgage, deed of trust, or other instrument to which the Issuer is a party or
by which it or any of its property is bound.

         (d) NO VIOLATION. The execution and delivery of the Issuer Documents,
the performance of the transactions contemplated thereby and the fulfillment of
the terms thereof will not conflict with or violate, in any material respect,
any Requirements of Law applicable to the Issuer.

         (e) ALL CONSENTS REQUIRED. All approvals, authorizations, consents,
orders or other actions of any Person or any Governmental Authority required to
be obtained by the Issuer in connection with the execution and delivery of the
Issuer Documents, the performance of the transactions contemplated thereby and
the fulfillment of the terms thereof have been obtained.

         (f) LOCATION. The Issuer has its chief executive office and place of
business (as such terms are used in Article 9 of the UCC) in Wilmington,
Delaware. The Issuer agrees that it will not change the location of such office
to a location outside of Wilmington, Delaware, without at least 30 days prior
written notice to the Facility Administrator, the Servicer and the Indenture
Trustee.

                                   ARTICLE IV

                           SATISFACTION AND DISCHARGE

         SECTION 4.1. SATISFACTION AND DISCHARGE OF INDENTURE. This Indenture
shall cease to be of further effect with respect to the Notes except as to: (i)
rights of registration of transfer and exchange, (ii) substitution of mutilated,
destroyed, lost or stolen Notes, (iii) rights of Noteholders to receive payments

                                      -19-
<PAGE>   25

of principal thereof and interest thereon, (iv) SECTIONS 3.3, 3.4, 3.5, 3.8,
3.10, 3.12 and 3.13, (v) the rights, obligations and immunities of the Indenture
Trustee hereunder (including the rights of the Indenture Trustee under SECTION
6.7 and the obligations of the Indenture Trustee under SECTION 4.2) and (vi) the
rights of Noteholders as beneficiaries hereof with respect to the property so
deposited with the Indenture Trustee payable to all or any of them, and the
Indenture Trustee, on demand of and at the expense of the Issuer, shall execute
proper instruments acknowledging satisfaction and discharge of this Indenture
with respect to the Notes, when:

                  (A) either:

                  (1) all Notes theretofore authenticated and delivered (other
         than: (i) Notes that have been destroyed, lost or stolen and that have
         been replaced or paid as provided in SECTION 2.5 and (ii) Notes for
         whose payment money has theretofore been deposited in trust or
         segregated and held in trust by the Issuer and thereafter repaid to the
         Issuer or discharged from such trust, as provided in SECTION 3.3) have
         been delivered to the Indenture Trustee for cancellation; or

                  (2) all Notes not theretofore delivered to the Indenture Trust
         for cancellation:

                           (i) have become due and payable in full,

                           (ii) will become due and payable in full on the
                  applicable Note Final Scheduled Maturity Date within one year,
                  or

                           (iii) are to be called for redemption within one year
                  under arrangements satisfactory to the Indenture Trustee for
                  the giving of notice of redemption by the Indenture Trustee in
                  the name, and at the expense, of the Issuer, and the Issuer,
                  in the case of CLAUSE (2)(I), (II) or (III), has irrevocably
                  deposited or caused to be irrevocably deposited with the
                  Indenture Trustee cash or direct obligations of or obligations
                  guaranteed by the United States of America (which will mature
                  prior to the date such amounts are payable), in trust for such
                  purpose, in an amount sufficient to pay and discharge the
                  entire indebtedness on such Notes not theretofore delivered to
                  the Indenture Trustee for cancellation when due to the
                  applicable Note Final Scheduled Maturity Date or Redemption
                  Date (if Notes shall have been called for redemption pursuant
                  to SECTION 10.1), as the case may be;

                  (B) the Issuer has paid or caused to be paid all other sums
         payable hereunder by the Issuer; and

                  (C) the Issuer has delivered to the Indenture Trustee and the
         Facility Administrator an Officer's Certificate and an Opinion of
         Counsel, each meeting the applicable requirements of SECTION 11.1(A)
         and, subject to SECTION 11.2, each stating that all conditions
         precedent herein provided for relating to the satisfaction and
         discharge of this Indenture have been complied with.

                                      -20-
<PAGE>   26

         SECTION 4.2. APPLICATION OF TRUST MONEY. All moneys deposited with the
Indenture Trustee pursuant to SECTION 4.1 shall be held in trust and applied by
it, in accordance with the provisions of the Notes, this Indenture and the Sale
and Servicing Agreement, to the payment, either directly or through any Paying
Agent, as the Facility Administrator shall determine, to the Holders of the
particular Notes for the payment or redemption of which such moneys have been
deposited with the Indenture Trustee, of all sums due and to become due thereon
for principal and interest; but such moneys need not be segregated from other
funds except to the extent required herein or in the Sale and Servicing
Agreement or as required by law.

         SECTION 4.3. REPAYMENT OF MONEYS HELD BY PAYING AGENT. In connection
with the satisfaction and discharge of this Indenture with respect to the Notes,
all moneys then held by any Paying Agent other than the Indenture Trustee under
this Indenture with respect to such Notes shall, upon demand of the Issuer, be
paid to the Indenture Trustee to be held and applied according to SECTION 3.3,
and thereupon such Paying Agent shall be released from all further liability
with respect to such moneys.

                                   ARTICLE V

                           EVENTS OF DEFAULT; REMEDIES

         SECTION 5.1. EVENTS OF DEFAULT. "Event of Default", wherever used
herein, means any one of the following events (whatever the reason for such
Event of Default and whether it shall be voluntary or involuntary or be effected
by operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body):

                  (i) default in the payment of any interest on any Note when
         the same becomes due and payable, and such default shall continue for a
         period of three (3) Business Days,

                  (ii) default in the payment of the principal of any Note when
         the same becomes due and payable, and such default shall continue for a
         period of three (3) Business Days;

                  (iii) default in the observance or performance of any covenant
         or agreement of the Issuer made in any Transaction Document (other than
         a covenant or agreement a default in the observance or performance of
         which is elsewhere in this Section specifically dealt with), or any
         representation or warranty of the Issuer made in this Indenture or in
         any certificate or other writing delivered pursuant hereto or in
         connection herewith proving to have been incorrect in any material
         respect as of the time when the same shall have been made, and such
         default shall continue or not be cured, or the circumstance or
         condition in respect of which such misrepresentation or warranty was
         incorrect shall not have been eliminated or otherwise cured, for a
         period of 30 days after there shall have been given, by registered or

                                      -21-
<PAGE>   27

         certified mail, to the Issuer by the Indenture Trustee or the Facility
         Administrator, or to the Issuer, the Facility Administrator, and the
         Indenture Trustee by the Holders of more than 50% of the Outstanding
         Amount of either Class of Notes, a written notice specifying such
         default or incorrect representation or warranty and requiring it to be
         remedied and stating that such notice is a "Notice of Default"
         hereunder;

                  (iv) the filing of a decree or order for relief by a court
         having jurisdiction in the premises in respect of any of the Issuer,
         any Seller, the Servicer or the Club Trustee or any substantial part of
         such Person's property in an involuntary case under any applicable
         Federal or State bankruptcy, insolvency or other similar law now or
         hereafter in effect, or appointing a receiver, liquidator, assignee,
         custodian, trustee, sequestrator or similar official of such Person or
         for any substantial part of its property, or ordering the winding-up or
         liquidation of such Person's affairs, and such decree or order shall
         remain unstayed and in effect for a period of 60 consecutive days;

                  (v) the commencement by any of the Issuer, any Seller, the
         Servicer or the Club Trustee of a voluntary case under any applicable
         Federal or State bankruptcy, insolvency or other similar law now or
         hereafter in effect, or the consent by such Person to the entry of an
         order for relief in an involuntary case under any such law, or the
         consent by such Person to the appointment or taking possession by a
         receiver, liquidate, assignee, custodian, trustee, sequestrator or
         similar official of such Person or for any substantial part of its
         property, or the making by such Person of any general assignment for
         the benefit of creditors, or the failure by such Person generally to
         pay its debts as such debts become due, or the taking of action by such
         Person in furtherance of any of the foregoing;

                  (vi) (A) failure on the part of the Club Trustee, the Servicer
         or any Seller to make or cause to be made any payment or deposit (or in
         the alternative, Receivable substitution) required by the terms of any
         Transaction Document on the day such payment or deposit (or
         substitution) is required to be made by such Person (giving effect to
         any applicable grace period) or (B) failure on the part of the Club
         Trustee, the Club Managing Entity or any Seller to observe or perform
         any of its other covenants or agreements set forth in any Transaction
         Document, which failure continues unremedied for a period of 30 days
         after written notice from the Indenture Trustee; PROVIDED, that only a
         10 day cure period shall apply in the case of a failure by any Seller
         to observe its covenant not to grant a security interest or otherwise
         intentionally create a Lien on the Receivables; or

                  (vii) the Issuer shall become an "INVESTMENT COMPANY" within
         the meaning of the Investment Company Act of 1940, as amended (the
         "Act") or the arrangements contemplated by the Transaction Documents
         shall require registration as an "INVESTMENT COMPANY" within the
         meaning of the Act.

         The Issuer shall deliver to the Indenture Trustee and the Facility
Administrator, within five Business Days after the Issuer obtains actual
knowledge thereof, written notice in the form of an Officer's Certificate of any
event that, with the giving of notice or the lapse of time or both, would become
an Event of Default under CLAUSE (III), its status and what action the Issuer is
taking or proposes to take with respect thereto.

                                      -22-
<PAGE>   28

         SECTION 5.2. ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT. If an
Event of Default shall have occurred and be continuing, the Indenture Trustee
shall, if so requested in writing by the Note Majority, declare by written
notice to the Issuer that the Facility Termination Date has occurred, whereupon
the Notes shall become due and payable, together with accrued and unpaid
interest thereon, and be paid in accordance with SECTION 2.11(B) of the Sale and
Servicing Agreement.

         At any time after such declaration of acceleration of maturity has been
made and before a judgment or decree for payment of the money due has been
obtained by the Indenture Trustee as hereinafter in this ARTICLE V provided, the
Note Majority by written notice to the Issuer and the Indenture Trustee, may
rescind and annul such declaration and its consequences if:

                  (i) the Issuer has paid or deposited with the Indenture
         Trustee amounts sufficient to pay:

                           (A) all payments of principal of and interest on all
                  Notes and all other amounts that would then be due hereunder
                  or upon such Notes if the Event of Default giving rise to such
                  acceleration had not occurred; and

                           (B) all sums paid or advanced by the Indenture
                  Trustee and the reasonable out-of-pocket expenses,
                  disbursements and advances of the Indenture Trustee and its
                  agents (including reasonable fees and disbursements of
                  counsel); and

                  (ii) all Events of Default, other than the nonpayment of the
         principal of the Notes that has become due solely by such acceleration,
         have been cured or waived as provided in SECTION 5.12.

         No such rescission shall affect any subsequent default or impair any
consequence thereof.

         SECTION 5.3. COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY
INDENTURE TRUSTEE. (a) The Issuer covenants that if the Notes are accelerated in
accordance with Section 5.2, the Notes, together with accrued and unpaid
interest thereon, shall be paid together with interest upon the overdue
principal at the applicable interest rate, and, to the extent payment at such
rate of interest shall be legally enforceable, upon overdue installments of
interest, at the applicable interest rate, and in addition thereto such further
amount as shall be sufficient to cover the costs and expenses of collection,
including the reasonable fees, out-of-pocket expenses, disbursements and
advances of the Indenture Trustee, the Facility Administrator and their
respective agents and counsel.

         (b) In case the Issuer shall fail forthwith to pay such amounts under
SECTION 5.3(A) upon such demand, the Indenture Trustee, in its own name and as
trustee of an express trust, may (or shall, at the written direction of the Note
Majority) (i) institute a Proceeding for the collection of the sums so due and
unpaid, (ii) prosecute such Proceeding to judgment or final decree, and (iii)
enforce the same against the Issuer or other obligor upon such Notes and collect
in the manner provided by law out of the property of the Issuer or other obligor
upon such Notes, wherever situated, the moneys adjudged or decreed to be
payable.

                                      -23-
<PAGE>   29

         (c) In case an Event of Default occurs and is continuing, the Indenture
Trustee may (or shall at the written direction of the Note Majority), as more
particularly provided in SECTION 5.4, proceed to protect and enforce its rights
and the rights of the Noteholders, by such appropriate Proceedings as the
Indenture Trustee shall deem most effective to protect and enforce any such
rights, whether for the specific enforcement of any covenant or agreement in
this Indenture or in aid of the exercise of any power granted herein, or to
enforce any other proper remedy or legal or equitable right vested in the
Indenture Trustee by this Indenture or by law.

         (d) In case there shall be pending, relative to the Issuer or any other
obligor upon the Notes or any Person having or claiming an ownership interest in
the Collateral, Proceedings under Title 11 of the United States Code or any
other applicable Federal or State bankruptcy, insolvency or other similar law,
or in case a receiver, assignee, trustee in bankruptcy or reorganization,
liquidator, sequestrator or similar official shall have been appointed for or
taken possession of the Issuer or its property or such other obligor or Person,
or in case of any other comparable judicial Proceedings relative to the Issuer
or other obligor upon the Notes, or to the creditors or property of the Issuer
or such other obligor, the Indenture Trustee, irrespective of whether the
principal of any Notes shall then be due and payable as therein expressed or by
declaration or otherwise and irrespective of whether the Indenture Trustee shall
have made any demand pursuant to this Section, shall be entitled and empowered,
by intervention in such proceedings or otherwise:

                  (i) to file and prove a claim or claims for the whole amount
         of principal and interest owing and unpaid in respect of the Notes and
         to file such other papers or documents as may be necessary or advisable
         in order to have the claims of the Indenture Trustee (including any
         claim for reasonable compensation to the Indenture Trustee and each
         predecessor Indenture Trustee, and their respective agents, attorneys
         and counsel, and for reimbursement of all out-of-pocket expenses and
         liabilities incurred, and all advances made, by the Indenture Trustee
         and each predecessor Indenture Trustee, except as a result of the gross
         negligence or bad faith), the Facility Administrator and the
         Noteholders allowed in such Proceedings;

                  (ii) unless prohibited by applicable law or regulations, to
         vote on behalf of the Holders of the Notes in any election of a
         trustee, a standby trustee or any Person performing similar functions
         in any such Proceedings;

                  (iii) to collect and receive any moneys or other property
         payable or deliverable on any such claims and to distribute all amounts
         received with respect to the claims of the Noteholders, the Facility
         Administrator and the Indenture Trustee on their behalf; and

                  (iv) to file such proofs of claim and other papers or
         documents as may be necessary or advisable in order to have the claims
         of the Indenture Trustee, the Facility Administrator or the Holders of
         Notes allowed in any judicial Proceedings relative to the Issuer, its
         creditors and its property;

and any trustee, receiver, liquidator, assignee, custodian, sequestrator or
other similar official in any such Proceeding is hereby authorized by each of

                                      -24-
<PAGE>   30

such Noteholders to make payments to the Indenture Trustee, and, in the event
that the Indenture Trustee shall consent to the making of payments directly to
such Noteholders, to pay to the Indenture Trustee such amounts as shall be
sufficient to cover reasonable compensation to the Indenture Trustee, each
predecessor Indenture Trustee and their respective agents, attorneys and
counsel, and all other out-of-pocket expenses and liabilities incurred, and all
advances made, by the Indenture Trustee and each predecessor Indenture Trustee
except as a result of negligence or bad faith.

         (e) Nothing herein contained shall be deemed to authorize the Indenture
Trustee to authorize or consent to or vote for or accept or adopt on behalf of
any Noteholder any plan of reorganization, arrangement, adjustment or
composition affecting the Notes or the rights of any Holder thereof or to
authorize the Indenture Trustee to vote in respect of the claim of any
Noteholder in any such proceeding except, as aforesaid, to vote for the election
of a trustee in bankruptcy or similar Person.

         (f) All rights of action and of asserting claims under this Indenture,
or under any of the Notes, may be enforced by the Indenture Trustee without the
possession of any of the Notes or the production thereof in any trial or other
Proceedings relative thereto, and any such action or Proceedings instituted by
the Indenture Trustee shall be brought in its own name and as trustee of an
express trust, and any recovery of judgment, subject to the payment of the
expenses, disbursements and compensation of the Indenture Trustee, each
predecessor Indenture Trustee and their respective agents and attorneys, shall
be for the ratable benefit of the Holders of the Notes.

         (g) In any Proceedings brought by the Indenture Trustee (and also any
Proceedings involving the interpretation of any provision of this Indenture to
which the Indenture Trustee shall be a party), the Indenture Trustee shall be
held to represent all the Holders of the Notes, and it shall not be necessary to
make any Noteholder a party to any such Proceedings.

         SECTION 5.4. REMEDIES; PRIORITIES. (a) If an Event of Default shall
have occurred and be continuing, the Indenture Trustee may (with the consent of
the Facility Administrator) (and shall at the written direction of the Facility
Administrator or the Note Majority) do one or more of the following (subject to
SECTION 5.5):

                  (i) institute Proceedings in its own name and as trustee of an
         express trust for the collection of all amounts then payable on the
         Notes or under this Indenture with respect thereto, whether by
         declaration or otherwise, enforce any judgment obtained, and collect
         from the Issuer and any other obligor upon such Notes moneys adjudged
         due;

                  (ii) institute Proceedings from time to time for the complete
         or partial foreclosure of this Indenture with respect to the
         Collateral;

                  (iii) exercise any remedies of a secured party under the UCC
         and take any other appropriate action to protect and enforce the rights
         and remedies of the Indenture Trustee and the Holders of the Notes; and

                  (iv) sell the Collateral, or any portion thereof or rights or
         interest therein, at one or more public or private sales called and
         conducted in any manner permitted by law;

                                      -25-
<PAGE>   31

PROVIDED, HOWEVER, that the Indenture Trustee may not sell or otherwise
liquidate the Collateral following an Event of Default, other than an Event of
Default described in SECTION 5.1(I) or (II), unless: (A) all Noteholders consent
in writing thereto, (B) the proceeds of such sale or liquidation distributable
to the Noteholders are sufficient to discharge in full all amounts then due and
unpaid upon such Notes for principal and interest and any amounts set forth
under SECTION 2.11 of the Sale and Servicing Agreement or (C) the Indenture
Trustee determines that the Collateral will not continue to provide sufficient
funds for the payment of principal of and interest on the Notes as they would
have become due if the Notes had not been declared due and payable, and the
Indenture Trustee obtains the written consent of Holders of 66-2/3% of the
Outstanding Amount of each Class of Notes. In determining such sufficiency or
insufficiency with respect to CLAUSES (B) and (C), the Indenture Trustee may,
but need not, obtain and conclusively rely upon an opinion of an Independent
investment banking or accounting firm of national reputation as to the
feasibility of such proposed action and as to the sufficiency of the Collateral
for such purpose. The Indenture Trustee shall not be liable for acting in
reliance on such an opinion.

         (b) If the Indenture Trustee collects any money or property pursuant to
this ARTICLE V, it shall pay out such money or property according to the
priorities set forth in SECTION 2.11 of the Sale and Servicing Agreement.

         The Indenture Trustee may fix a special record date and special payment
date for any payment to Noteholders pursuant to this Section. At least 15 days
before such special record date, the Issuer shall mail to each Noteholder, the
Facility Administrator and the Indenture Trustee a notice that states the
special record date, the special payment date and the amount to be paid.

         SECTION 5.5. OPTIONAL PRESERVATION OF THE RECEIVABLES. If the Notes
have been declared to be due and payable under SECTION 5.2 following an Event of
Default, and such declaration and its consequences have not been rescinded and
annulled, the Indenture Trustee may (or shall, at the written direction of the
Facility Administrator and the Note Majority) elect to maintain possession of
the Collateral. It is the desire of the parties hereto and the Noteholders that
there be at all times sufficient funds for the payment of principal of and
interest on the Notes, and the Indenture Trustee shall take such desire into
account when determining whether or not to maintain possession of the
Collateral. In determining whether to maintain possession of the Collateral, the
Indenture Trustee may, but need not, obtain (at the expense of the Issuer) and
rely upon an opinion of an Independent investment banking or accounting firm of
national reputation as to the feasibility of such proposed action and as to the
sufficiency of the Collateral for such purpose. The Indenture Trustee shall not
be liable for acting in reliance on such an opinion.

         SECTION 5.6. LIMITATION OF SUITS. No Holder of any Note shall have any
right to institute any Proceeding, judicial or otherwise, with respect to this
Indenture, or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless:

         (a) such Holder has previously given written notice to the Indenture
Trustee of a continuing Event of Default and such Event of Default continues to
exist as of the date of the proposed Proceeding;

                                      -26-
<PAGE>   32

         (b) the Note Majority has made written request to the Indenture Trustee
to institute such Proceeding in respect of such Event of Default in its own name
as Indenture Trustee hereunder;

         (c) such Holder(s) have offered to the Indenture Trustee indemnity
satisfactory to it against the costs, expenses and liabilities to be incurred in
complying with such request;

         (d) the Indenture Trustee for sixty (60) days after receipt of such
notice, request and offer of indemnity has failed to institute such Proceedings;
and

         (e) no direction inconsistent with such written request has been given
to the Indenture Trustee during such sixty (60) day period by the Note Majority.

It being understood and intended that no one or more Holder(s) of Notes shall
have any right in any manner whatever by virtue of, or by availing of, any
provision of this Indenture to affect, disturb or prejudice the rights of any
other Holder(s) of Notes or to obtain or to seek to obtain priority or
preference over any other Holder(s) or to enforce any right under this
Indenture, except in the manner herein provided.

         SECTION 5.7. UNCONDITIONAL RIGHTS OF NOTEHOLDERS TO RECEIVE PRINCIPAL
AND INTEREST. Notwithstanding any other provisions in this Indenture, the Holder
of any Note shall have the right, which is absolute and unconditional, to
receive payment of the principal of and interest, if any, on such Note on or
after the respective due dates thereof expressed in such Note or in this
Indenture (or, in the case of redemption, on or after the Redemption Date) and
to institute suit for the enforcement of any such payment, and such right shall
not be impaired without the consent of such Holder.

         SECTION 5.8. RESTORATION OF RIGHTS AND REMEDIES. If the Indenture
Trustee or any Noteholder has instituted any Proceeding to enforce any right or
remedy under this Indenture and such Proceeding has been discontinued or
abandoned for any reason or has been determined adversely to the Indenture
Trustee or to such Noteholder, then and in every such case the Issuer, the
Indenture Trustee, the Facility Administrator and the Noteholders shall, subject
to any determination in such Proceeding, be restored severally and respectively
to their former positions hereunder, and thereafter all rights and remedies of
the Indenture Trustee, the Facility Administrator and the Noteholders shall
continue as though no such Proceeding had been instituted.

         SECTION 5.9. RIGHTS AND REMEDIES CUMULATIVE. No right or remedy herein
conferred upon or reserved to the Indenture Trustee, the Facility Administrator
or to the Noteholders is intended to be exclusive of any other right or remedy,
and every right and remedy shall, to the extent permitted by law, be cumulative
and in addition to every other right and remedy given hereunder or now or
hereafter existing at law or in equity or otherwise. To the extent permitted by
law, the assertion or employment of any right or remedy hereunder, or otherwise,
shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.

         SECTION 5.10. DELAY OR OMISSION NOT A WAIVER. No delay or omission of
the Indenture Trustee, the Facility Administrator or any Holder of Notes to
exercise any right or remedy accruing upon any Default or Event of Default shall
impair any such right or remedy or constitute a waiver of any such Default or

                                      -27-
<PAGE>   33

Event of Default or an acquiescence therein. Every right and remedy given by
this Article or by law to the Indenture Trustee, the Facility Administrator or
to the Noteholders may be exercised from time to time, and as often as may be
deemed expedient, by the Indenture Trustee, the Facility Administrator or by the
Noteholders, as the case may be.

         SECTION 5.11. CONTROL BY NOTEHOLDERS. Holders holding at least a
majority of the Outstanding Amount of each Class of Notes shall have the right
to direct the time, method and place of conducting any Proceeding for any remedy
available to the Indenture Trustee with respect to the Notes or exercising any
trust or power conferred on the Indenture Trustee; PROVIDED, that:

         (a) such direction shall not be in conflict with any rule of law or
with this Indenture;

         (b) subject to the express terms of SECTION 5.4, any direction to the
Indenture Trustee to sell or liquidate the Collateral shall be by all the
Noteholders;

         (c) if the conditions set forth in SECTION 5.5 have been satisfied and
the Indenture Trustee elects to retain the Collateral pursuant to such Section,
then any direction to the Indenture Trustee by Holders of Notes representing
less than 100% of the Outstanding Amount of the Notes to sell or liquidate the
Collateral shall be of no force and effect; and

         (d) the Indenture Trustee may take any other action deemed prudent by
the Indenture Trustee that is not inconsistent with such direction;

PROVIDED, HOWEVER, that, subject to SECTION 6.1, the Indenture Trustee need not
take any action that it determines might involve it in liability or might
materially adversely affect the rights of any Noteholder(s) not consenting to
such action.

         SECTION 5.12. WAIVER OF PAST DEFAULTS. Prior to the time a judgment or
decree for payment of money due has been obtained as described in SECTION 5.3,
Holders holding at least a majority of the Outstanding Amount of each Class of
Notes may waive any Event of Default and its consequences except an Event of
Default: (a) in payment of principal of or interest on any of the Notes or (b)
in respect of a covenant or provision hereof that cannot be modified or amended
without the consent of the Holder of each Note. In the case of any such waiver,
the Issuer, the Indenture Trustee, the Facility Administrator and the Holders of
the Notes shall be restored to their former positions and rights hereunder,
respectively; but no such waiver shall extend to any subsequent or other Event
of Default or impair any right consequent thereto.

         Upon any such waiver, such Event of Default shall cease to exist and be
deemed to have been cured and not to have occurred for every purpose of this
Indenture; but no such waiver shall extend to any subsequent or other Default or
Event of Default or impair any right consequent thereto.

         SECTION 5.13. UNDERTAKING FOR COSTS. All parties to this Indenture
agree, and each Holder of any Note by such Holder's acceptance thereof shall be
deemed to have agreed, that any court may in its discretion require, in any suit
for the enforcement of any right or remedy under this Indenture, or in any suit
against the Indenture Trustee for any action taken, suffered or omitted by it as
Indenture Trustee, the filing by any party litigant in such suit of an

                                      -28-
<PAGE>   34

undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorney's fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this Section shall not apply to: (a) any suit instituted by the
Indenture Trustee or the Facility Administrator, (b) any suit instituted by any
Noteholder(s) holding in the aggregate more than 10% of the Outstanding Amount
of the Notes or (c) any suit instituted by any Noteholder for the enforcement of
the payment of principal of or interest on any Note on or after the respective
due dates expressed in such Note and in this Indenture (or, in the case of
redemption, on or after the Redemption Date).

         SECTION 5.14. WAIVER OF STAY OR EXTENSION LAWS. The Issuer covenants
(to the extent that it may lawfully do so) that it will not at any time insist
upon, or plead or in any manner whatsoever, claim or take the benefit or
advantage of, any stay or extension law wherever enacted, now or at any time
hereafter in force, that may affect the covenants or the performance of this
Indenture; and the Issuer (to the extent that it may lawfully do so) hereby
expressly waives all benefit or advantage of any such law, and covenants that it
will not hinder, delay or impede the execution of any power herein granted to
the Indenture Trustee or the Facility Administrator, but will suffer and permit
the execution of every such power as though no such law had been enacted.

         SECTION 5.15. ACTION ON NOTES. The Indenture Trustee's right to seek
and recover judgment on the Notes or under this Indenture shall not be affected
by the seeking, obtaining or application of any other relief under or with
respect to this Indenture. Neither the Lien of this Indenture nor any rights or
remedies of the Indenture Trustee, the Facility Administrator or the Noteholders
shall be impaired by the recovery of any judgment by the Indenture Trustee
against the Issuer or by the levy of any execution under such judgment upon any
portion of the Collateral or upon any of the assets of the Issuer. Any money or
property collected by the Indenture Trustee shall be applied in accordance with
SECTION 5.4(B).

         SECTION 5.16. PERFORMANCE AND ENFORCEMENT OF CERTAIN OBLIGATIONS. (a)
Promptly following a request from the Indenture Trustee to do so and at the
Issuer's expense, the Issuer shall take all such lawful action within its
control as the Indenture Trustee, the Note Majority or the Facility
Administrator may request to compel or secure the performance and observance by
the Trust Depositor and the Servicer, as applicable, of each of their
obligations to the Issuer under or in connection with the Sale and Servicing
Agreement in accordance with the terms thereof, and to exercise any and all
rights, remedies, powers and privileges lawfully available to the Issuer under
or in connection with the Sale and Servicing Agreement to the extent and in the
manner directed by the Indenture Trustee, the Note Majority or the Facility
Administrator, including the transmission of notices of breach on the part of
the Trust Depositor or the Servicer thereunder and the institution of legal or
administrative actions or proceedings to compel or secure performance by the
Trust Depositor or the Servicer of each of their obligations under the Sale and
Servicing Agreement.

         (b) If an Event of Default has occurred and is continuing, the
Indenture Trustee may, and at the direction (which direction shall be in
writing) of the Holders of not less than 66-2/3% of the Outstanding Amount of

                                      -29-
<PAGE>   35

each Class of Notes shall, exercise all rights, remedies, powers, privileges and
claims of the Issuer against the Trust Depositor or the Servicer under or in
connection with the Sale and Servicing Agreement, including the right or power
to take any action to compel or secure performance or observance by the Trust
Depositor or the Servicer of each of their obligations to the Issuer thereunder
and to give any consent, request, notice, direction, approval, extension or
waiver under the Sale and Servicing Agreement, and any right of the Issuer to
take such action shall be suspended.

                                   ARTICLE VI

                              THE INDENTURE TRUSTEE

         SECTION 6.1. DUTIES OF THE INDENTURE TRUSTEE. (a) If an Event of
Default has occurred and is continuing, the Indenture Trustee shall exercise the
rights and powers vested in it by this Indenture and use the same degree of care
and skill in its exercise as a prudent person would exercise or use under the
circumstances in the conduct of such person's own affairs.

         (b) Except during the continuance of an Event of Default actually known
to a Responsible Officer of the Indenture Trustee:

                  (i) the Indenture Trustee undertakes to perform such duties
         and only such duties as are specifically set forth in this Indenture
         and no implied covenants or obligations shall be read into this
         Indenture against the Indenture Trustee; and

                  (ii) in the absence of bad faith on its part, the Indenture
         Trustee may conclusively rely, as to the truth of the statements and
         the correctness of the opinions expressed therein, upon certificates or
         opinions furnished to the Indenture Trustee and conforming to the
         requirements of this Indenture; PROVIDED, HOWEVER, in the case of any
         such certificates or opinions that by any provision hereof are
         specifically required to be furnished to the Indenture Trustee, the
         Indenture Trustee shall examine the certificates and opinions to
         determine whether or not they conform to the requirements of this
         Indenture.

         (c) The Indenture Trustee may not be relieved from liability for its
own negligent action, its own negligent failure to act or its own willful
misconduct, except that:

                  (i) this CLAUSE (C) does not limit the effect of CLAUSE (B) of
         this Section;

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

                  (iii) the Indenture Trustee shall not be liable with respect
         to any action it takes or omits to take in good faith in accordance
         with a direction received by it pursuant to the Indenture;

                  (iv) the Indenture Trustee shall not be charged with knowledge
         of an Event of Default unless a Responsible Officer obtains actual
         knowledge of such event or the Indenture Trustee receives written

                                      -30-
<PAGE>   36

         notice of such event from the Seller, Servicer, the Facility
         Administrator or Holders owning Notes aggregating not less than 10% of
         the Outstanding Amount of the Notes (as used herein "actual knowledge"
         means the actual fact or state of knowing, without any duty to
         investigate); and

                  (v) the Indenture Trustee shall have no duty to monitor the
         performance of the Issuer, the Seller or the Servicer, nor shall it
         have any liability in connection with malfeasance or nonfeasance by the
         Issuer, the Seller or the Servicer. The Indenture Trustee shall have no
         liability in connection with compliance of the Issuer, the Seller or
         the Servicer with statutory or regulatory requirements related to the
         Collateral. The Indenture Trustee shall not make or be deemed to have
         made any representations or warranties with respect to the Collateral
         or the validity or sufficiency of any assignment of the Collateral.

         (d) Every provision of this Indenture that in any way relates to the
Indenture Trustee is subject to CLAUSES (A), (B), (C) and (F) of this Section
6.1.

         (e) The Indenture Trustee shall not be liable for interest on any money
receive except as the Indenture Trustee may agree in writing with the Issuer.

         (f) No provision of this Indenture shall require the Indenture Trustee
to expend or risk its own funds or otherwise incur financial liability in the
performance of any of its duties hereunder or in the exercise of any of its
rights or powers if it shall have reasonable grounds to believe that repayments
of such funds or indemnity satisfactory to it against any loss, liability or
expense is not reasonably assured to it.

         (g) Every provision of this Indenture relating to the conduct or
affecting the liability of or affording protection to the Indenture Trustee
shall be subject to this Section.

         (h) The Indenture Trustee shall, upon two Business Days' prior notice
to the Indenture Trustee, permit any representative of the Facility
Administrator or the Issuer, during the Indenture Trustee's normal business
hours, to examine all books of account and official records required to be
maintained in accordance with this Indenture by the Indenture Trustee relating
to the Notes, to make copies and extracts therefrom and to discuss the Indenture
Trustee's affairs and actions, as such affairs and actions relate to the
Indenture Trustee's duties with respect to the Notes, with the Indenture
Trustee's officers and employees responsible for carrying out the Indenture
Trustee's duties with respect to the Notes. All expenses incurred by the
Indenture Trustee in connection with such examination shall be borne by the
Issuer.

         SECTION 6.2. RIGHTS OF INDENTURE TRUSTEE. (a) The Indenture Trustee may
conclusively rely and shall be fully protected in acting on any document
believed by it to be genuine and to have been signed or presented by the proper
Person. The Indenture Trustee need not and shall not be bound to investigate any
fact or matter stated in any such document.

         (b) Before the Indenture Trustee acts or refrains from acting at the
request of the Issuer, the Servicer, the Facility Administrator or any Holder,
it may require an Officer's Certificate or an Opinion of Counsel. The Indenture
Trustee shall not be liable for any action it takes or omits to take in good
faith in reliance on the Officer's Certificate or Opinion of Counsel.

                                      -31-
<PAGE>   37

         (c) The Indenture Trustee may execute any of the trusts or powers
hereunder or perform any duties hereunder either directly or by or through
agents, attorneys, a custodian or a nominee; PROVIDED, HOWEVER, that the
Indenture Trustee shall not be responsible for any misconduct or negligence on
the part of, and for the supervision of any such agent, attorney, custodian or
nominee appointed with due care by it.

         (d) The Indenture Trustee shall not be liable for any action it takes
or omits to take in good faith that it believes to be authorized or within its
rights or powers; PROVIDED, HOWEVER, that the Indenture Trustee's conduct does
not constitute willful misconduct, negligence or bad faith.

         (e) The Indenture Trustee may consult with counsel, and the advice or
opinion of counsel with respect to legal matters relating to this Indenture and
the Notes shall be full and complete authorization and protection from liability
in respect to any action taken, omitted or suffered by it hereunder in good
faith and in accordance with the advice or opinion of such counsel.

         (f) The Indenture Trustee shall not be required to make any initial or
periodic examination of any files or records related to the Receivables for the
purpose of establishing the presence or absence of defects, the compliance by
the Issuer with its representations and warranties or for any other purpose.

         (g) In the event that the Indenture Trustee is also acting as transfer
agent, Paying Agent or Note Registrar hereunder, the rights and protections
afforded to the Indenture Trustee pursuant to this Article VI shall also be
afforded to the Indenture Trustee in its capacity as such transfer agent, Paying
Agent or Note Registrar.

         SECTION 6.3. INDIVIDUAL RIGHTS OF THE INDENTURE TRUSTEE. The Indenture
Trustee shall not, in its individual capacity, but may in a fiduciary capacity,
become the owner of Notes. The Indenture Trustee may otherwise deal with the
Issuer or its Affiliates with the same rights it would have if it were not the
Indenture Trustee. Any Paying Agent, Note Registrar, co-registrar or co-paying
agent may do the same with like rights. However, the Indenture Trustee must
comply with SECTION 6.11.

         SECTION 6.4. INDENTURE TRUSTEE'S DISCLAIMER. Except as set forth in
SECTION 6.12, the Indenture Trustee shall not be responsible for, and makes no
representation as to the validity or adequacy of, this Indenture, the Collateral
or the Notes; shall not be accountable for the Issuer's use of the proceeds from
the Notes; and shall not be responsible for any statement of the Issuer in this
Indenture or in any document issued in connection with the sale of the Notes or
in the Notes other than the Indenture Trustee's certificate of authentication.

         SECTION 6.5. NOTICE OF DEFAULTS. If a Default or an Event of Default
occurs and is continuing and is actually known to a Responsible Officer, the
Indenture Trustee shall fax, if such fax number is known, (followed by a notice
sent by mail) to each Noteholder and the Facility Administrator notice of the
Default or Event of Default within 5 Business Days after obtaining knowledge of
the occurrence thereof.

         SECTION 6.6. REPORTS BY INDENTURE TRUSTEE TO THE HOLDERS. The Indenture
Trustee shall deliver to each Noteholder such information as may be required to
enable such Holder to prepare its Federal, State and other income tax returns;

                                      -32-
<PAGE>   38

PROVIDED the Servicer has provided the Indenture Trustee with any such required
information in a timely manner.

         SECTION 6.7. COMPENSATION AND INDEMNITY. The Issuer shall (pursuant to
SECTION 2.11 of the Sale and Servicing Agreement) pay to the Indenture Trustee
from time to time reasonable compensation for its services. The Indenture
Trustee's compensation shall not be limited by any law on compensation of a
trustee of an express trust. Subject to the last sentence of this paragraph, the
Issuer shall indemnify the Indenture Trustee and its officers, directors,
employees and agents against any and all loss, claims, actions, liability or
expense (including reasonable attorneys' fees) incurred by them in connection
with the administration of this trust and the performance of its duties
hereunder, the Transaction Documents and any transaction or document
contemplated herewith or therewith. The Indenture Trustee shall notify the
Issuer, the Facility Administrator and the Servicer promptly of any claim for
which it may seek indemnity. Failure by the Indenture Trustee to so notify the
Issuer, the Facility Administrator and the Servicer shall not relieve the
Servicer or the Issuer of its obligations. The Issuer shall defend any such
claim and the Indenture Trustee may have separate counsel and the Issuer shall
pay the fees and expenses of such counsel. The Issuer need not reimburse any
expense or indemnify against any loss, liability or expense incurred by the
Indenture Trustee through the Indenture Trustee's own willful misconduct,
negligence or bad faith.

         The Issuer's payment obligations to the Indenture Trustee pursuant to
this Section shall survive the discharge of this Indenture. When the Indenture
Trustee incurs expenses after the occurrence of an Event of Default specified in
SECTION 5.1(IV) or (V), the expenses are intended to constitute expenses of
administration under Title II of the United States Code or any other applicable
Federal or State bankruptcy, insolvency or similar law.

         SECTION 6.8. REPLACEMENT OF THE INDENTURE TRUSTEE. No resignation or
removal of the Indenture Trustee and no appointment of a successor Indenture
Trustee shall become effective until the acceptance of appointment by a
successor Indenture Trustee pursuant to this SECTION 6.8. The Indenture Trustee
may resign at any time by so notifying the Issuer, the Servicer and the Facility
Administrator in writing. Holders constituting not less than a majority of each
Class of Notes may remove the Indenture Trustee by so notifying the Indenture
Trustee in writing and may appoint a successor Indenture Trustee. The Issuer
may, with the consent of the Facility Administrator, remove the Indenture
Trustee if:

                  (i) the Indenture Trustee fails to comply with SECTION 6.11;

                  (ii) the Indenture Trustee is adjudged as bankrupt or
         insolvent;

                  (iii) a receiver or other public officer takes charge of the
         Indenture Trustee or its property; or

                  (iv) the Indenture Trustee otherwise becomes incapable of
         acting.

         If the Indenture Trustee resigns or is removed or if a vacancy exists
in the office of Indenture Trustee for any reason (the Indenture Trustee in such
event being referred to herein as the retiring Indenture Trustee), the Issuer
shall promptly appoint a successor Indenture Trustee which is reasonably
acceptable to the Facility Administrator and the Trust Depositor.

                                      -33-
<PAGE>   39

         A successor Indenture Trustee shall deliver a written acceptance of its
appointment to the retiring Indenture Trustee, the Facility Administrator, the
Servicer and to the Issuer. Thereupon the resignation or removal of the retiring
Indenture Trustee shall become effective, and the successor Indenture Trustee
shall have all the rights, powers and duties of the Indenture Trustee under this
Indenture. The successor Indenture Trustee shall mail a notice of its succession
to Noteholders, the Servicer and the Facility Administrator. The retiring
Indenture Trustee shall promptly transfer, at the expense of the Issuer, all
property held by it as Indenture Trustee to the successor Indenture Trustee.

         If a successor Indenture Trustee does not take office within 60 days
after the retiring Indenture Trustee resigns or is removed, the retiring
Indenture Trustee, the Issuer, the Facility Administrator or Holders
constituting not less than a majority of each Class of Notes may petition any
court of competent jurisdiction for the appointment of a successor Indenture
Trustee.

         If the Indenture Trustee fails to comply with SECTION 6.11, any
Noteholder or the Facility Administrator may petition any court of competent
jurisdiction for the removal of the Indenture Trustee and the appointment of a
successor Indenture Trustee.

         Notwithstanding the replacement of the Indenture Trustee pursuant to
this Section, the Issuer's obligations under SECTION 6.7 shall continue for the
benefit of the retiring Indenture Trustee. The retiring Indenture Trustee shall
have no liability for any act or omission by any successor Indenture Trustee.

         SECTION 6.9. SUCCESSOR INDENTURE TRUSTEE BY MERGER. If the Indenture
Trustee consolidates with, merges or converts into, or transfers all or
substantially all its corporate trust business or assets to, another corporation
or banking association, the resulting, surviving or transferee corporation
without any further act shall be the successor Indenture Trustee; PROVIDED, that
such corporation or banking association shall be otherwise qualified and
eligible under SECTION 6.11. The Indenture Trustee shall provide the Facility
Administrator and the Issuer prior written notice of any such transaction.

         In case at the time such successor(s) by merger, conversion or
consolidation to the Indenture Trustee shall succeed to the trusts created by
this Indenture any of the Notes shall have been authenticated but not delivered,
any such successor to the Indenture Trustee may adopt the certificate of
authentication of any predecessor trustee, and deliver such Notes so
authenticated; and in case at that time any of the Notes shall not have been
authenticated, any successor to the Indenture Trustee may authenticate such
Notes either in the name of any predecessor trustee hereunder or in the name of
the successor to the Indenture Trustee; and in all such cases such certificates
of authentication shall have the full force and effect to the same extent given
to the certificate of authentication of the Indenture Trustee anywhere in the
Notes or in this Indenture.

         SECTION 6.10. APPOINTMENT OF CO-TRUSTEE OR SEPARATE TRUSTEE. (a)
Notwithstanding any other provisions of this Indenture, at any time, for the
purpose of meeting any legal requirement of any jurisdiction in which any part
of the Collateral may at the time be located, the Indenture Trustee (with the
consent of the Facility Administrator (which consent shall not be unreasonably
withheld)) shall have the power and may execute and deliver all instruments to
appoint one or more Person(s) to act as co-trustee(s), or separate trustee(s),
of all or any part of the Collateral, and to vest in such Person(s), in such

                                      -34-
<PAGE>   40

capacity and for the benefit of the Noteholders, such title to the Collateral,
or any part thereof, and, subject to the other provisions of this Section, such
powers, duties, obligations, rights and trusts as the Indenture Trustee may
consider necessary or desirable. No co-trustee or separate trustee hereunder
shall be required to meet the terms of eligibility as a successor trustee under
SECTION 6.11 and no notice to Noteholders of the appointment of any co-trustee
or separate trustee shall be required under SECTION 6.8.

         (b) Every separate trustee and co-trustee shall, to the extent
permitted, be appointed and act subject to the following provisions and
conditions:

                  (i) all rights, powers, duties and obligations conferred or
         imposed upon the Indenture Trustee shall be conferred or imposed upon
         and exercised or performed by the Indenture Trustee and such separate
         trustee or co-trustee jointly (it being understood that such separate
         trustee or co-trustee is not authorized to act separately without the
         Indenture Trustee joining in such act), except to the extent that under
         any law of any jurisdiction in which any particular act(s) are to be
         performed, the Indenture Trustee shall be incompetent or unqualified to
         perform such act(s), in which event such rights, powers, duties and
         obligations (including the holding of title to the Collateral or any
         portion thereof in any such jurisdiction) shall be exercised and
         performed singly by such separate trustee or co-trustee, but solely at
         the direction of the Indenture Trustee;

                  (ii) no trustee hereunder shall be personally liable by reason
         of any act or omission of any other trustee hereunder; and

                  (iii) the Indenture Trustee may at any time accept the
         resignation of or remove, in its sole discretion, any separate trustee
         or co-trustee (it being understood that the Indenture Trustee shall
         provide notice of such resignation or removal to the Facility
         Administrator).

         (c) Any notice, request or other writing given to the Indenture Trustee
shall be deemed to have been given to each of the then separate trustees and
co-trustees, as effectively as if given to each of them. Every instrument
appointing any separate trustee or co-trustee shall refer to this Agreement and
the conditions of this ARTICLE VI. Each separate trustee and co-trustee, upon
its acceptance of the trusts conferred, shall be vested with the estates or
property specified in its instrument of appointment, either jointly with the
Indenture Trustee or separately, as may be provided therein, subject to the
provisions of this Indenture, specifically including every provision of this
Indenture relating to the conduct of, affecting the liability of, or affording
protection to, the Indenture Trustee. Every such instrument shall be filed with
the Indenture Trustee.

         (d) Any separate trustee or co-trustee may at any time constitute the
Indenture Trustee as its agent or attorney-in-fact with full power and
authority, to the extent not prohibited by law, to do any lawful act under or in
respect of this Indenture on its behalf and in its name. If any separate trustee
or co-trustee shall die, cease to exist, become incapable of acting, resign or

                                      -35-
<PAGE>   41

be removed, all of its estates, properties, rights, remedies and trusts shall
vest in and be exercised by the Indenture Trustee, to the extent permitted by
law, without the appointment of a new or successor trustee.

         (e) The Indenture Trustee shall have no obligation to determine whether
a co-trustee or separate trustee is legally required in any jurisdiction in
which any part of the Collateral may be located.

         SECTION 6.11. ELIGIBILITY; DISQUALIFICATION. The Indenture Trustee and
any Paying Agent shall have, or be a member of a bank holding company having, a
combined capital and surplus of at least $50,000,000 as set forth in its most
recent published annual report of condition and it shall have a long term
senior, unsecured debt rating of "Baa3" or better by Moody's (or, if not rated
by Moody's, a comparable rating by another statistical rating agency) and "BBB-"
or better by Standard & Poor's.

         SECTION 6.12. REPRESENTATIONS AND WARRANTIES OF INDENTURE TRUSTEE.
Indenture Trustee in its individual capacity and as Indenture Trustee represents
and warrants as follows:

         (a) ORGANIZATION AND CORPORATE POWER. It is a duly organized and
validly existing Illinois banking corporation in good standing under the laws of
each jurisdiction where its business so requires. It has full corporate power,
authority and legal right to execute, deliver and perform its obligations as
Indenture Trustee under this Indenture and the Sale and Servicing Agreement (the
foregoing documents, the "Indenture Trustee Documents") and to authenticate the
Notes.

         (b) DUE AUTHORIZATION. The execution and delivery of the Indenture
Trustee Documents, the consummation of the transactions provided for therein and
the authentication of the Notes have been duly authorized by all necessary
corporate action on its part, either in its individual capacity or as Indenture
Trustee, as the case may be.

         (c) NO CONFLICT. The execution and delivery of the Indenture Trustee
Documents, the performance of the transactions contemplated thereby and the
fulfillment of the terms thereof (including the authentication of the Notes)
will not conflict with, result in any breach of any of the material terms and
provisions of, or constitute (with or without notice or lapse of time or both) a
default under any indenture, contract, agreement, mortgage, deed of trust, or
other instrument to which the Indenture Trustee is a party or by which it or any
of its property is bound.

         (d) NO VIOLATION. The execution and delivery of the Indenture Trustee
Documents, the performance of the transactions contemplated thereby and the
fulfillment of the terms thereof (including the authentication of the Notes)
will not conflict with or violate, in any material respect, any Applicable Law.

         (e) ALL CONSENTS REQUIRED. All approvals, authorizations, consents,
orders or other actions of any Person or Governmental Entity applicable to the
Indenture Trustee, required in connection with the execution and delivery of the
Indenture Trustee Documents, the performance by the Indenture Trustee of the
transactions contemplated thereby and the fulfillment by the Indenture Trustee
of the terms thereof (including the authentication of the Notes) have been
obtained.

                                      -36-
<PAGE>   42

         (f) VALIDITY, ETC. Each Indenture Trustee Document constitutes a legal,
valid and binding obligation of the Indenture Trustee, enforceable against the
Indenture Trustee in accordance with its terms, except as such enforceability
may be limited by applicable insolvency laws and except as such enforceability
may be limited by general principles of equity, concepts of materiality and
reasonableness (whether considered in a suit at law or in equity) or by an
implied covenant of good faith and fair dealing.

                                  ARTICLE VII

                         NOTEHOLDERS' LISTS AND REPORTS

         SECTION 7.1. ISSUER TO FURNISH INDENTURE TRUSTEE NAMES AND ADDRESSES OF
NOTEHOLDERS. The Issuer will furnish or cause to be furnished to the Indenture
Trustee: (a) not more than five days after the earlier of: (i) each Record Date
and (ii) three months after the last Record Date, a list, in such form as the
Indenture Trustee may reasonably require, of the names and addresses of the
Holders of Notes as of such Record Date, and (b) at such other times as the
Indenture Trustee may request in writing, within 30 days after receipt by the
Issuer of any such request, a list of similar form and content as of a date not
more than 10 days prior to the time such list is furnished; PROVIDED, HOWEVER,
that so long as the Indenture Trustee is the Note Registrar, no such list shall
be required to be furnished.

         SECTION 7.2. PRESERVATION OF INFORMATION: COMMUNICATIONS TO
NOTEHOLDERS. The Indenture Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of the Holders of Notes
contained in the most recent list furnished to the Indenture Trustee as provided
in SECTION 7.1 and the names and addresses of Holders of Notes received by the
Indenture Trustee in its capacity as Note Registrar. The Indenture Trustee may
destroy any list furnished to it as provided in SECTION 7.1 upon receipt of a
new list so furnished.

                                  ARTICLE VIII

                      ACCOUNTS, DISBURSEMENTS AND RELEASES

         SECTION 8.1. COLLECTION OF MONEY. Except as otherwise expressly
provided herein, the Indenture Trustee may demand payment or delivery of, and
shall receive and collect, directly and without intervention or assistance of
any fiscal agent or other intermediary, all money and other property payable to
or receivable by the Indenture Trustee pursuant to this Indenture and the Sale
and Servicing Agreement. The Indenture Trustee shall apply all such money
received by it as provided in this Indenture and the Sale and Servicing
Agreement. Except as otherwise expressly provided in this Indenture, if any
default occurs in the making of any payment or performance under any agreement
or instrument that is part of the Collateral, the Indenture Trustee may cause
the Servicer to take such action as may be appropriate to enforce such payment
or performance, including the institution and prosecution of appropriate
Proceedings. Any such action shall be without prejudice to any right to claim an
Event of Default under this Indenture and any right to proceed thereafter as
provided in ARTICLE V.

         SECTION 8.2. TRUST ACCOUNTS. On or prior to the Closing Date, the
Issuer shall cause the Servicer to establish and maintain, in the name of the
Indenture Trustee, for the benefit of the Noteholders, the Trust Accounts as
provided in SECTION 2.3 of the Sale and Servicing Agreement. Not in limitation

                                      -37-
<PAGE>   43

of the foregoing, on each Payment Date and Redemption Date, the Indenture
Trustee shall distribute amounts on deposit in the Collection Account to
Noteholders to the extent of amounts due and unpaid on the Notes in the amounts
and in the order of priority set forth in SECTION 2.11 of the Sale and Servicing
Agreement.

         SECTION 8.3. GENERAL PROVISIONS REGARDING ACCOUNTS. (a) So long as no
Event of Default shall have occurred and be continuing, all or a portion of the
funds in the Trust Accounts (other than the Lockbox Account) shall be invested
in Permitted Investments and reinvested by the Indenture Trustee pursuant to the
provisions of SECTION 2.5 of the Sale and Servicing Agreement. All income or
other gain from investments of moneys deposited in the Trust Accounts shall be
deposited by the Indenture Trustee in the Collection Account or the Reserve
Account, and any loss or expenses resulting from such investments shall be
charged to such account.

         (b) Subject to SECTION 6.1(C), the Indenture Trustee shall not in any
way be held liable for the selection of Permitted Investments or by reason of
any insufficiency in an of the Trust Accounts resulting from any loss on any
Permitted Investment included therein, except for losses attributable to the
Indenture Trustee's failure to make payments on such Permitted Investments
issued by the Indenture Trustee, in its commercial capacity as principal obligor
and not as trustee, in accordance with their terms.

         (c) In the absence of timely and specific written investment direction
from the Servicer and Issuer, the Indenture Trustee shall invest any cash held
in Permitted Investments of a type described in clause (c)(i) of the definition
thereof. In no event shall the Indenture Trustee be liable for investment losses
incurred thereon. The Indenture Trustee shall have no liability in respect of
losses incurred as a result of the liquidation of any investment prior to its
stated maturity or the failure of the Servicer and Issuer to provide timely
written investment direction.

         SECTION 8.4. RELEASE OF COLLATERAL. (a) Subject to the payment of its
fees and expenses pursuant to SECTION 6.7, the Indenture Trustee may, and when
required by this Indenture, the Sale and Servicing Agreement or any other
Transaction Document shall, execute instruments to release property from the
Lien of this Indenture, or convey the Indenture Trustee's interest in the same,
in a manner and under circumstances that are not inconsistent with this
Indenture. No party relying upon an instrument executed by the Indenture Trustee
as provided in this Article shall be bound to ascertain the Indenture Trustee's
authority, inquire into the satisfaction of any conditions precedent or see to
the application of any moneys.

         (b) The Indenture Trustee shall, at such time as there are no Aggregate
Outstandings and all sums due to the Indenture Trustee, the Facility
Administrator and the Noteholders pursuant to SECTION 6.7 or the other
Transaction Documents have been paid, release any remaining portion of the
Collateral without representation, warranty or recourse that secured the Notes
from the Lien of this Indenture and release to the Issuer or any other Person
entitled thereto any funds then on deposit in the Trust Accounts. The Indenture
Trustee shall release property from the Lien of this Indenture pursuant to this
paragraph only upon receipt of an Issuer Request accompanied by an Officer's
Certificate and an Opinion of Counsel.

                                      -38-
<PAGE>   44

                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

         SECTION 9.1. SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF NOTEHOLDERS.
Without the consent of the Holders of Notes and with the prior written consent
of the Facility Administrator (which consent shall not be unreasonably
withheld), the Issuer and the Indenture Trustee, when authorized by an Issuer
Order, at any time and from time to time, may enter into one or more indentures
supplemental hereto in form satisfactory to the Indenture Trustee, for any of
the following purposes:

                  (i) to correct or amplify the description of any property at
         any time subject to the Lien of this Indenture, or better to assure,
         convey and confirm unto the Indenture Trustee any property subject or
         required to be subjected to the Lien of this Indenture, or to subject
         to the Lien of this Indenture additional property;

                  (ii) to evidence the succession, in compliance with the
         applicable provisions hereof, of another Person to the Issuer, and the
         assumption by any such successor of the covenants of the Issuer herein
         and in the Notes;

                  (iii) to add to the covenants of the Issuer, for the benefit
         of the Holders of Notes, or to surrender any right or power herein
         conferred upon the Issuer;

                  (iv) to convey, transfer, assign, mortgage or pledge any
         property to or with the Indenture Trustee; or

                  (v) to cure any ambiguity, to correct or supplement any
         provision herein or in any supplemental indenture that may be
         inconsistent with any other provision herein or in any supplemental
         indenture or to make any other provisions with respect to matters or
         questions arising under this Indenture or in any supplemental
         indenture; PROVIDED, that such action shall not materially adversely
         affect the interests of the Holders of Notes.

         The Indenture Trustee is hereby authorized to join in the execution of
any such supplemental indenture and to make any further appropriate agreements
and stipulations that may be therein contained.

         SECTION 9.2. SUPPLEMENTAL INDENTURES WITH CONSENT NOTEHOLDERS. The
Issuer and the Indenture Trustee, when authorized by an Issuer Order, may, with
the written consent of the Facility Administrator and Holders holding at least a
majority of the Outstanding Amount of each Class of Notes affected thereby,
enter into an indenture or indentures supplemental hereto for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture affecting such Class of Notes or of modifying in
any manner the rights of the Holders of Notes under this Indenture; PROVIDED,
HOWEVER, that no such supplemental indenture shall, without the consent of the
Holder of each Outstanding Note affected thereby:

                  (i) change the date of payment of any installment of principal
         of or interest on any Note, or reduce the principal amount thereof, the
         interest rate thereon or the Redemption Price with respect thereto,
         change the provisions of this Indenture relating to the application of

                                      -39-
<PAGE>   45

         collections on, or the proceeds of the sale of, the Collateral to the
         payment of principal of or interest on the Notes, or change any place
         of payment where, or the coin or currency in which, any Note or the
         interest thereon is payable, or impair the right to institute suit for
         the enforcement of the provisions of this Indenture requiring the
         application of funds available therefor, as provided in ARTICLE V, to
         the payment of any Such amount due on or after the respective
         due dates thereof (or, in the case of redemption, on or after the
         Redemption Date);

                  (ii) reduce the percentage of the Outstanding Amount, the
         consent of the Holders of which is required for any such supplemental
         indenture, or the consent of the Holders of which is required for any
         waiver of compliance with certain provisions of this Indenture or
         certain defaults hereunder and their consequences provided for in this
         Indenture;

                  (iii) modify or alter the provisions of the proviso to the
         definition of "Outstanding";

                  (iv) reduce the percentage of the Outstanding Amount required
         to direct the Indenture Trustee to direct the Issuer to sell or
         liquidate the Collateral pursuant to SECTION 5.4;

                  (v) modify any provision of this Section except to increase
         any percentage specified herein or to provide that certain additional
         provisions of this Indenture or the Transaction Documents cannot be
         modified or waived without the consent of the Holder of each
         Outstanding Note affected thereby;

                  (vi) modify any of the provisions of this Indenture in such
         manner as to affect the calculation of the amount of any payment of
         interest or principal due on any Note on any Payment Date (including
         the calculation of any of the individual components of such
         calculation); or

                  (vii) permit the creation of any Lien ranking prior to or on a
         parity with the Lien of this Indenture with respect to any part of the
         Collateral or, except as otherwise permitted or contemplated herein,
         terminate the Lien of this Indenture on any property at any time
         subject hereto or deprive any Holder of Notes of the security provided
         by the Lien of this Indenture.

         Notwithstanding the foregoing, the Issuer and the Indenture Trustee
shall not enter into an indenture or indenture supplemental thereto without the
consent of the Servicer (so long as the Servicer is Bluegreen or an Affiliate
thereof), if the effect of such supplemental indenture is to materially increase
the obligations of the Servicer (in its capacity as Trust Administrator) under
the Administration Agreement.

         It shall not be necessary for any Act (as hereinafter defined) of the
Noteholders under this Section to approve the particular form of any proposed
supplemental indenture, but it shall be sufficient if such Act shall approve the
substance thereof. The manner of obtaining such consents (and any other consents
of Noteholders provided for in this Indenture or in any other Transaction

                                      -40-
<PAGE>   46

Document) and of evidencing the authorization of the execution thereof by
Noteholders shall be subject to such reasonable requirements as the Indenture
Trustee may provide.

         Promptly after the execution by the Issuer and the Indenture Trustee of
any supplemental indenture pursuant to this Section, the Indenture Trustee shall
mail to the Holders of the Notes to which such amendment or supplemental
indenture relates a notice setting forth in general terms the substance of such
supplemental indenture. Any failure of the Indenture Trustee to mail such
notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any such supplemental indenture.

         SECTION 9.3. EXECUTION OF SUPPLEMENTAL INDENTURES. In executing, or
permitting the additional trusts created by, any supplemental indenture
permitted by this ARTICLE IX or the modifications thereby of the trusts created
by this Indenture, the Indenture Trustee shall be entitled to receive (with a
copy to the Facility Administrator) and, subject to SECTIONS 6.1 and 6.2, shall
be fully protected in relying upon, an Opinion of Counsel stating that the
execution of such supplemental indenture is authorized and permitted by this
Indenture and all conditions precedent to the execution of such supplemental
indenture have been met. The Indenture Trustee may, but shall not be obligated
to, enter into any such supplemental indenture that affects the Indenture
Trustee's own rights, duties, liabilities or immunities under this Indenture or
otherwise.

         SECTION 9.4. EFFECT OF SUPPLEMENTAL INDENTURE. Upon the execution of
any supplemental indenture pursuant to the provisions hereof, this Indenture
shall be and be deemed to be modified and amended in accordance therewith with
respect to the Notes affected thereby, and the respective rights, limitations of
rights, obligations, duties, liabilities and immunities under this Indenture of
the Indenture Trustee, the Issuer, the Facility Administrator and the Holders of
the Notes shall thereafter be determined, exercised and enforced hereunder
subject in all respects to such modifications and amendments, and all the terms
and conditions of any such supplemental indenture shall be and be deemed to be
part of the terms and conditions of this Indenture for any and all purposes.

         SECTION 9.5. REFERENCE IN NOTES TO SUPPLEMENTAL INDENTURES. Notes
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article may, and if required by the Indenture Trustee shall,
bear a notation in form approved by the Indenture Trustee as to any matter
provided for in such supplemental indenture. If the Issuer or the Indenture
Trustee shall so determine, new Notes so modified as to conform, in the opinion
of the Indenture Trustee and the Issuer, to any such supplemental indenture may
be prepared and executed by the Issuer and authenticated and delivered by the
Indenture Trustee in exchange for Outstanding Notes.

                                   ARTICLE X

                               REDEMPTION OF NOTES

         SECTION 10.1. REDEMPTION. The Notes are subject to redemption in whole,
but not in part, at the direction of the Trust Depositor pursuant to Section
11.2 of the Sale and Servicing Agreement, on any Payment Date on which the Trust
Depositor exercises its option to purchase the Collateral pursuant to said
Section 11.2 (the "REDEMPTION DATE"), for a purchase price equal to the
Aggregate Outstandings (the "REDEMPTION PRICE"). If such Notes are to be

                                      -41-
<PAGE>   47

redeemed pursuant to this SECTION 10.1, the Servicer or the Issuer shall furnish
notice of such election to the Indenture Trustee and the Facility Administrator
not later than 20 days prior to the Redemption Date and the Issuer shall deposit
with the Indenture Trustee in the Collection Account the Redemption Price one
(1) Business Day prior to the Redemption Date.

         SECTION 10.2. FORM OF REDEMPTION NOTICE. Notice of redemption under
SECTION 10.1 shall be given by the Indenture Trustee by first-class mail,
postage prepaid, mailed not less than five days prior to the applicable
Redemption Date to each Holder of Notes, as of the close of business on the
Record Date preceding the applicable Redemption Date, at such Holder's address
appearing in the Note Register.

         All notices of redemption shall state:

                  (i) the Redemption Date;

                  (ii) the Redemption Price;

                  (iii) the place where such Notes are to be surrendered for
         payment of the Redemption Price (which shall be the office or agency of
         the Issuer to be maintained as provided in SECTION 3.2); and

                  (iv) CUSIP numbers, if any.

         Notice of redemption of the Notes shall be given by the Indenture
Trustee in the name and at the expense of the Issuer. Failure to give notice of
redemption, or any defect therein, to any Holder of any Note shall not impair or
affect the validity of the redemption of any other Note.

         SECTION 10.3. NOTES PAYABLE ON REDEMPTION DATE. The Notes to be
redeemed shall, following notice of redemption pursuant to this Article, become
due and payable on the Redemption Date at the Redemption Price and (unless the
Issuer shall default in the payment of the Redemption Price) no interest shall
accrue on the Redemption Price for any period after the date to which accrued
interest is calculated for purposes of calculating the Redemption Price.

         If there are not sufficient funds in the Collection Account on the
Payment Date on which the Notes are to be redeemed available to pay the
Redemption Price, the notice of redemption shall be deemed to have been revoked
and the Notes shall not be redeemed on the Redemption Date. Payments will be
made on such Payment Date in accordance with SECTION 5.5 of the Sale and
Servicing Agreement as though no notice of redemption had been given and the
Notes shall continue to bear interest at the Class A Note Rate or Class B Note
Rate, as applicable.

                                   ARTICLE XI

                                  MISCELLANEOUS

         SECTION 11.1. COMPLIANCE CERTIFICATES AND OPINIONS, ETC. (a) Upon any
application or request by the Issuer to the Indenture Trustee to take any action
under this Indenture, the Indenture Trustee shall be entitled to request that
the Issuer furnish to the Indenture Trustee and the Facility Administrator: (i)
an Officer's Certificate stating that all conditions precedent, if any, provided

                                      -42-
<PAGE>   48

for in this Indenture relating to the proposed action have been complied with
and (ii) an Opinion of Counsel stating that in the opinion of such counsel all
such conditions precedent, if any, have been complied with, except that, in the
case of any such application or request as to which the furnishing of such
documents is specifically required by this Indenture, no additional certificate
or opinion need be furnished.

         (b) Notwithstanding SECTION 2.9 or any other provision of this Section,
the Issuer may, without compliance with the requirements of the other provisions
of this Section: (A) collect, liquidate, sell or otherwise dispose of
Receivables or otherwise take action as and to the extent permitted or required
by the Transaction Documents and (B) make cash payments out of the Trust
Accounts as and to the extent permitted or required by the Transaction
Documents.

         SECTION 11.2. FORM OF DOCUMENTS DELIVERED TO INDENTURE TRUSTEE. In any
case where several matters are required to be certified by, or covered by an
opinion of, any specified Person, it is not necessary that all such matters be
certified by, or covered by the opinion of, only one such Person, or that they
be so certified or covered by only one document, but one such Person may certify
or give an opinion with respect to some matters and one or more other such
Persons as to other matters, and any such Person may certify or give an opinion
as to such matters in one or several documents.

         Any certificate or opinion of an Authorized Officer of the Issuer may
be based, insofar as it relates to legal matters, upon a certificate or opinion
of, or representations by, counsel, unless such officer knows, or in the
exercise of reasonable care should know, that the certificate, opinion or
representations with respect to the matters upon which his certificate or
opinion is based is/are erroneous. Any such certificate of an Authorized Officer
or Opinion of Counsel may be based, insofar as it relates to factual matters,
upon a certificate or opinion of, or representations by, an officer or officers
of the Servicer, the Seller, or the Issuer stating that the information with
respect to such factual matters is in the possession of the Servicer, the Seller
or the Issuer, as applicable, unless such Authorized Officer or counsel knows,
or in the exercise of reasonable care should know, that the certificate, opinion
or representations with respect to such matters is/are erroneous.

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

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

                                      -43-
<PAGE>   49

         SECTION 11.3. ACTS OF NOTEHOLDERS. (a) Any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Indenture to be given or taken by Noteholders may be embodied in and
evidenced by one or more instrument(s) of substantially similar tenor signed by
such Noteholders in person or by agents duly appointed in writing; and except as
herein otherwise expressly provided, such action shall become effective when
such instrument(s) are delivered to the Indenture Trustee and, where it is
hereby expressly required, to the Issuer. Such instrument(s) (and the action
embodied therein and evidenced thereby) are herein sometimes referred to as the
"Act" of the Noteholders signing such instrument(s). Proof of execution of any
such instrument or of a writing appointing any such agent shall be sufficient
for any purpose of this Indenture and (subject to SECTION 6.1) conclusive in
favor of the Indenture Trustee, the Facility Administrator and the Issuer, if
made in the manner provided in this Section.

         (b) The fact and date of the execution by any Person of any such
instrument or writing may be proved in any manner that the Indenture Trustee
and/or the Facility Administrator, as applicable, deems sufficient.

         (c) The ownership of Notes shall be proved by the Note Register.

         (d) Any request, demand, authorization, direction, notice, consent,
waiver or Act by the Holder of any Notes shall bind the Holder of every Note
issued upon the registration thereof, in exchange therefor or in lieu thereof,
in respect of anything done, omitted or suffered to be done by the Indenture
Trustee, the Facility Administrator or the Issuer in reliance thereon, whether
or not notation of such action is made upon such Note.

         SECTION 11.4. NOTICES, ETC., TO THE INDENTURE TRUSTEE, ISSUER, THE
FACILITY ADMINISTRATOR. Any request, demand, authorization, direction, notice,
consent, waiver or Act of Noteholders, or other documents provided or permitted
by this Indenture, shall be in writing and, if such request, demand,
authorization, direction, notice, consent, waiver or Act of Noteholders is to be
made upon, given or furnished to or filed with:

         (a) the Indenture Trustee by any Noteholder or by the Issuer, shall be
sufficient for every purpose hereunder if made, given, furnished or filed in
writing to or with the Indenture Trustee at its Corporate Trust Office (with a
copy to the Facility Administrator); or

         (b) the Issuer by the Indenture Trustee or by any Noteholder, shall be
sufficient for every purpose hereunder if in writing and mailed, first-class,
postage prepaid, to the Issuer addressed to: c/o Wilmington Trust Company,
Rodney Square North, 1100 North Market Street, Wilmington, Delaware 19890-0001,
Attention: Corporate Trust Administration or at any other address previously
furnished in writing to the Indenture Trustee by the Issuer. The Issuer shall
promptly transmit any notice received by it from the Noteholders to the
Indenture Trustee.

         Notices required to be given to the Facility Administrator by the
Issuer or the Indenture Trustee shall be in writing, personally delivered or
mailed by certified mail, return receipt requested, to their respective
addresses set forth in SECTION 13.3 of the Sale and Servicing Agreement. So long
as Bluegreen or an Affiliate thereof is the Servicer, copies of all notices
delivered to the Issuer shall be delivered by the sender of such notice to the
Servicer at its address set forth in the Sale and Servicing Agreement.

                                      -44-
<PAGE>   50

         SECTION 11.5. NOTICES TO NOTEHOLDERS; WAIVER. Where this Indenture
provides for notice to Noteholders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing
and mailed, first-class, postage prepaid to each Noteholder affected by such
event, at his address as it appears on the Note Register, not later than the
latest date, and not earlier than the earliest date, prescribed for the giving
of such notice. In any case where notice to Noteholders is given by mail,
neither the failure to mail such notice nor any defect in any notice so mailed
to any particular Noteholder shall affect the sufficiency of such notice with
respect to other Noteholders, and any notice that is mailed in the manner herein
provided shall conclusively be presumed to have been duly given. Any notice sent
to the Noteholders shall also be sent to the Facility Administrator.

         Where this Indenture provides for notice in any manner, such notice may
be waived in writing by any Person entitled to receive such notice, either
before or after the event, and such waiver shall be the equivalent of such
notice. Waivers of notice by Noteholders shall be filed with the Indenture
Trustee but such filing shall not be a condition precedent to the validity of
any action taken in reliance upon such a waiver.

         In case, by reason of the suspension of regular mail service, it shall
be impractical to mail notice of any event to Noteholders when such notice is
required to be given pursuant to this Indenture, then any manner of giving such
notice as shall be satisfactory to the Indenture Trustee shall be deemed to be a
sufficient giving of such notice.

         SECTION 11.6. ALTERNATE PAYMENT AND NOTICE PROVISIONS. Notwithstanding
any provision of this Indenture or any of the Notes to the contrary, the Issuer
may enter into any agreement with any Holder of a Note providing for a method of
payment, or notice by the Indenture Trustee or any Paying Agent to such Holder,
that is different from the methods provided for in this Indenture or the Notes
for such payments or notices. The Issuer will furnish to the Indenture Trustee a
copy of each such agreement and the Indenture Trustee will cause payments to be
made and notices to be given in accordance with such agreements.

         SECTION 11.7. EFFECT OF HEADINGS AND TABLE OF CONTENTS. The Article and
Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

         SECTION 11.8. SUCCESSORS AND ASSIGNS. All covenants and agreements in
this Indenture and the Notes by the Issuer shall bind its successors and
assigns, whether so expressed or not. All agreements of the Indenture Trustee in
this Indenture shall bind its successors, co-trustees and agents of the
Indenture Trustee.

         SECTION 11.9. SEVERABILITY. Any provision of this Indenture or the
Notes that is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof or of the
Notes, as applicable, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

         SECTION 11.10. BENEFITS OF INDENTURE. Nothing in this Indenture or in
the Notes, express or implied, shall give to any Person, other than the parties
hereto and their successors hereunder, the Servicer, the Trust Depositor, the

                                      -45-
<PAGE>   51

Noteholders, the Facility Administrator, any other party secured hereunder and
any other Person with an ownership interest in any part of the Collateral, any
benefit or any legal or equitable right, remedy or claim under this Indenture;
PROVIDED, HOWEVER, that the Facility Administrator shall be considered an
express third-party beneficiary of this Indenture and capable of bringing an
action with respect to this Indenture in the same manner as a party hereto.

         SECTION 11.11. LEGAL HOLIDAY. In any case where the date on which any
payment is due shall not be a Business Day, then (notwithstanding any other
provision of the Notes or this Indenture) payment need not be made on such date,
but may be made on the next Business Day with the same force and effect as if
made on the date on which nominally due, and no interest shall accrue for the
period from and after any such nominal date.

         SECTION 11.12. GOVERNING LAW; WAIVER OF JURY TRIAL. THIS INDENTURE
SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF ILLINOIS, WITHOUT
REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH
LAWS. TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE ISSUER, THE
INDENTURE TRUSTEE AND EACH NOTEHOLDER (BY ACCEPTING A NOTE) WAIVES ANY RIGHT TO
HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE SOUNDING IN CONTRACT, TORT OR
OTHERWISE BETWEEN THE PARTIES ARISING OUT OF, CONNECTED WITH, RELATED TO, OR
INCIDENTAL TO THE RELATIONSHIP BETWEEN ANY OF THEM IN CONNECTION WITH THIS
INDENTURE OR THE NOTES. INSTEAD, ANY SUCH DISPUTE RESOLVED IN COURT SHALL BE
RESOLVED IN A BENCH TRIAL WITHOUT A JURY.

         SECTION 11.13. COUNTERPARTS. This Indenture may be executed in any
number of counterparts (including by facsimile), each of which when so executed
shall be deemed to be an original, but all such counterparts shall together
constitute but one and the same instrument.

SECTION 11.14. RECORDING OF INDENTURE. If this Indenture is subject to recording
in any public recording offices, such recording is to be effected by the Issuer
and, at its expense, accompanied by an Opinion of Counsel (which may be counsel
to the Servicer or any other counsel reasonably acceptable to the Facility
Administrator) to the effect that such recording is necessary either for the
protection of the Noteholders or any other Person secured hereunder or for the
enforcement of any right or remedy granted to the Indenture Trustee under this
Indenture.

         SECTION 11.15. TRUST OBLIGATION. No recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer or the Indenture
Trustee on the Notes or under this Indenture or any certificate or other writing
delivered in connection herewith or therewith, against: (i) the Indenture
Trustee in its individual capacity, (ii) any owner or a beneficial interest in
the Issuer or (iii) any partner, owner, beneficiary, officer, director, employee
or agent of: (a) the Indenture Trustee in its individual capacity, (b) any owner
of a beneficial interest in the Issuer or the Indenture Trustee or (c) of any
successor or assign of the Indenture Trustee in its individual capacity, except
as any such Person may have expressly agreed (it being understood that the
Indenture Trustee has no such obligations in its individual capacity).

                                      -46-
<PAGE>   52

         SECTION 11.16. NO PETITION. The Indenture Trustee, by entering into
this Indenture, and each Noteholder, by accepting a Note, hereby covenant and
agree that they will not at any time institute against the Issuer, or join in
any institution against the Issuer of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings, or other proceedings under
any United States Federal or State bankruptcy or similar law in connection with
any obligations relating to the Notes, this Indenture or any of the Transaction
Documents. The foregoing shall not limit the rights of the Indenture Trustee to
file any claim in or otherwise take any action with respect to any insolvency
proceeding that was instituted against the Issuer by any Person other than the
Indenture Trustee.

         SECTION 11.17. INSPECTION. The Issuer agrees that, on reasonable prior
notice, it will permit any representative of the Indenture Trustee or of the
Facility Administrator, during the Issuer's normal business hours, to examine
all the books of account, records, reports and other papers of the Issuer, to
make copies and extracts therefrom, to cause such books to be audited by
Independent certified public accountants, and to discuss the Issuer's affairs,
finances and accounts with the Issuer's officers, employees and Independent
certified public accountants, all at such reasonable times and as often as may
be reasonably requested. The Indenture Trustee and the Facility Administrator
shall and shall cause its representatives to hold in confidence all such
information; PROVIDED, HOWEVER, that the foregoing shall not be construed to
prohibit: (i) disclosure of any and all information that is or becomes publicly
known, or information obtained by the Indenture Trustee or of the Facility
Administrator from sources other than the Issuer or Servicer, (ii) disclosure of
any and all information: (A) if required to do so by any applicable statute,
law, rule or regulation, (B) to any government agency or regulatory or
self-regulatory body having or claiming authority to regulate or oversee any
aspects of the Indenture Trustee's or the Facility Administrator's business or
that of its Affiliates, (C) pursuant to any subpoena, civil investigative demand
or similar demand or request of any court, regulatory authority, arbitrator or
arbitration to which the Indenture Trustee, the Facility Administrator or an
Affiliate or any officer, director, employee or shareholder of either is Subject
or is a party, (D) in any preliminary or final offering circular, registration
statement or contract or other document pertaining to the transactions
contemplated by the Indenture and approved in advance by the Issuer or (E) to
any Affiliate, independent or internal auditor, agent, employee or attorney of
either the Indenture Trustee or the Facility Administrator having a need to know
the same; PROVIDED, that the Indenture Trustee or the Facility Administrator
advises such recipient of the confidential nature of the information being
disclosed and such recipient agrees to keep such information confidential, (iii)
any other disclosure authorized by the Issuer or the Servicer or (iv) disclosure
to the other parties to the transactions contemplated by the Transaction
Documents.

                            [signature page follows]

                                      -47-
<PAGE>   53

                                              Signature Page to Indenture

717629.8

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

                             BXG RECEIVABLES OWNER TRUST 2000

                             By:  Wilmington Trust Company, not in its
                             individual capacity but solely as Owner Trustee

                             By:  /s/ JILL K. MORRISON
                                  -------------------------------------------
                             Name: JILL K. MORRISON
                             Title:  FINANCIAL SERVICES

                             U.S. BANK TRUST NATIONAL ASSOCIATION, not in its
                             individual capacity but solely as Indenture Trustee

                             By:  /s/ TAMARA SCHULTZ-FUGH
                                  -------------------------------------------
                             Name:  TAMARA SCHULTZ-FUGH
                             Title:  ASSISTANT VICE PRESIDENT

                                      -48-

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