Document:

EXECUTION COPY

         

        PURCHASE AND CONTRIBUTION AGREEMENT

         

        by and between

         

        Bluegreen Corporation, 

        a Massachusetts corporation

        and

         

        BRFC-Q 2010 LLC,

        a Delaware limited liability company, 

         

        Dated as of December 22, 2010

         

        
            

        

        PURCHASE AND CONTRIBUTION AGREEMENT

        This PURCHASE AND CONTRIBUTION AGREEMENT (this “Agreement”),dated as of December 22, 2010, is by and between Bluegreen Corporation, a Massachusetts corporation (“BXG”) and BRFC-Q 2010 LLC, a Delaware limited liability
        company (the “Loan Seller”) and their respective permitted successors and assigns.

        W I T N E S S E T H:

        WHEREAS, on the Closing Date, the Loan Seller, as seller, intends to enter into that certain Loan Sale and Servicing Agreement dated as of December 22, 2010 (the “Sale Agreement”), by and among Loan Seller, as seller, Quorum Federal Credit Union, as buyer (“Quorum”), Bluegreen Corporation, as servicer, Vacation
        Trust, Inc., as club trustee, Concord Servicing Corporation, as backup servicer, and U.S. Bank National Association, as custodian, pursuant to which the Loan Seller intends, from time to time, to sell to Quorum the timeshare loans that it may acquire, from time to time, pursuant to the terms of this Agreement; and

        WHEREAS, from time to time (i) BXG desires to sell, and the Loan Seller desires to purchase, timeshare loans originated by BXG or an Affiliate thereof (the “Timeshare Loans”) and (ii) BXG, as the sole member of the Loan Seller, desires to make contributions of capital pursuant to the terms hereof; and

        WHEREAS, pursuant and subject to the terms of the Sale Agreement, the Loan Seller shall, from time to time, sell to Quorum the Timeshare Loans acquired from BXG; and

        WHEREAS, BXG may, and in certain circumstances shall be required, to cure, repurchase or substitute and provide one (1) or more Qualified Substitute Timeshare Loans for a Timeshare Loan that is a Defective Timeshare Loan, previously acquired by the Loan Seller hereunder and sold to Quorum pursuant to the Sale Agreement; and

        WHEREAS, the Loan Seller may, at the direction of BXG, be required to exercise BXG’s option to purchase or replace Timeshare Loans that become subject to an Upgrade or Defaulted Loans previously sold to Quorum pursuant to the Sale Agreement;

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

        SECTION 1. Definitions; Interpretation. Capitalized terms used but not defined herein shall have the meanings specified in the “Standard Definitions” attached as Annex A to the Sale Agreement.

         

        PURCHASE AND CONTRIBUTION AGREEMENT, Page 1

         

        

        

        

        SECTION 2. Acquisition of Timeshare Loans and Contribution of Capital to the Loan Seller.

        (a) Timeshare Loans and Contribution of Capital. From time to time after the Closing Date, on each Sale Date, BXG hereby agrees to (x) sell in part and contribute in part to the Loan Seller in return for the Timeshare Loan Acquisition Price for each Timeshare Loan to be sold on such Sale Date, to be paid in part in cash and in part as
        an increase in its equity ownership of the Loan Seller and (y) transfer, assign, sell and grant to the Loan Seller, without recourse (except as provided in Section 6 and Section 8 hereof), any and all of BXG’s right, title and interest in and to (but not including the Deferred Purchase Price or any proceeds thereof) (i) the Timeshare Loans, listed from time to time on the Schedule of Timeshare Loans, (ii) the Receivables in respect of such Timeshare Loans due after the related
        Cut-Off Date, (iii) the related Timeshare Loan Documents (excluding any rights as developer or declarant under the Timeshare Declaration, the Timeshare Program Consumer Documents or the Timeshare Program Governing Documents), (iv) all Related Security in respect of each such Timeshare Loan and (v) all income, payments, proceeds and other benefits and rights related to any of the foregoing (the properties in clauses (i)-(v), being the
        “Assets”). Upon such contribution, sale and transfer, the ownership of each Timeshare Loan and all collections allocable to principal and interest thereon after the related Cut-Off Date and all other property interests or rights conveyed pursuant to and referenced in this Section 2(a) shall immediately vest in the Loan Seller, its successors and assigns. BXG shall not take any action inconsistent with such ownership nor
        claim any ownership interest in any Timeshare Loan for any purpose whatsoever other than for federal and state income and franchise tax reporting, if applicable, and financial reporting in accordance with GAAP. The parties to this Agreement hereby acknowledge that the “credit risk” of the Timeshare Loans conveyed hereunder shall be borne by the Loan Seller and its subsequent assignees.

        (b) Delivery of Timeshare Loan Documents. In connection with the contribution, sale, transfer, assignment and conveyance of any Timeshare Loan hereunder, BXG hereby agrees to deliver or cause to be delivered, at least five (5) Business Days prior to each Sale Date (with respect to any Timeshare Loan) and on or within five (5) Business
        Days from each Transfer Date (with respect to any Qualified Substitute Timeshare Loan), as applicable, to the Custodian all related Timeshare Loan Files and to the Servicer all related Timeshare Loan Servicing Files.

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

        (d) Limitation of Liability. Neither the Loan Seller nor any subsequent assignee of the Loan Seller shall have any obligation or liability with respect to any Timeshare Loan nor shall the Loan Seller or any subsequent assignee have any liability to any Obligor in respect of any Timeshare Loan. No such obligation or liability is intended
        to be assumed by the Loan Seller or any subsequent assignee herewith and any such liability is hereby expressly disclaimed. 

         

        PURCHASE AND CONTRIBUTION AGREEMENT, Page 2

         

        

        

        

        
            	
                         

                    	
                        SECTION 3.Intended Characterization; Grant of Security Interest. 

                    

        

        (a) It is the intention of the parties hereto that each transfer of the Timeshare Loans to be made pursuant to the terms hereof shall constitute a sale, in part, and a capital contribution, in part, by BXG to the Loan Seller and not a loan secured by the Timeshare Loans. In the event, however, that a court of competent jurisdiction were to hold that any such transfer constitutes a loan
        and not a sale and contribution, it is the intention of the parties hereto that BXG shall be deemed to have granted to the Loan Seller as of the date hereof a first priority perfected security interest in all of BXG’s right, title and interest in, to and under the Assets and the QSTL Assets (as hereafter defined) specified in Section 2(a) and Section 6(f) hereof, respectively, and the proceeds thereof and that with respect to such transfer, this Agreement shall constitute a
        security agreement under applicable law. In the event of the characterization of any such transfer as a loan, the amount of interest payable or paid with respect to such loan under the terms of this Agreement shall be limited to an amount which shall not exceed the maximum non-usurious rate of interest allowed by the applicable state law or any applicable law of the United States permitting a higher maximum non-usurious rate that preempts such applicable state law,
        which could lawfully be contracted for, charged or received (the “Highest Lawful Rate”).In the event any payment of interest on any such loan exceeds the Highest Lawful Rate, the parties hereto stipulate that (i) to the extent possible given the term of such loan, such excess amount previously paid or to be paid with respect to such loan be applied to reduce the principal balance of such loan, and the
        provisions thereof immediately be deemed reformed and the amounts thereafter collectible thereunder reduced, without the necessity of the execution of any new document, so as to comply with the then applicable law, but so as to permit the recovery of the fullest amount otherwise called for thereunder and (ii) to the extent that the reduction of the principal balance of, and the amounts collectible under, such loan and the reformation of the provisions thereof described in the
        immediately preceding clause (a)(i) is not possible given the term of such loan, such excess amount shall be deemed to have been paid with respect to such loan as a result of an error and upon discovery of such error or upon notice thereof by any party hereto such amount shall be refunded by the recipient thereof.

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

        (c) Each of BXG, the Club, the Club Trustee and any of their Affiliates hereby agrees to make the appropriate entries in its applicable records to indicate that the Timeshare Loans have been transferred to the Loan Seller and its subsequent assignees.

        SECTION 4. Conditions Precedent to Acquisition of Timeshare Loans by the Loan Seller. The obligations of the Loan Seller to purchase any Timeshare Loans hereunder shall be subject to the satisfaction of the following conditions:

         

        PURCHASE AND CONTRIBUTION AGREEMENT, Page 3

         

        

        

        

        (a) On each Sale Date, with respect to each Timeshare Loan, and on any Transfer Date, with respect to any Qualified Substitute Timeshare Loan replacing a Timeshare Loan, all representations and warranties of BXG contained in Section 5(a) hereof shall be true and correct on such date as if made on such date, and all representations and warranties as to the Timeshare Loans contained in
        Section 5(b) hereof and all information provided in the Schedule of Timeshare Loans in respect of each such Timeshare Loan conveyed on such Sale Date or Transfer Date, as applicable, shall be true and correct on such date. 

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

        (c) BXG shall have delivered or caused to be delivered all other information theretofore required or reasonably requested by the Loan Seller to be delivered by BXG or performed or caused to be performed all other obligations required to be performed as of the related Sale Date, including all filings, recordings and/or registrations as may be necessary in the reasonable opinion of the
        Loan Seller, to establish and preserve the right, title and interest of the Loan Seller in the related Timeshare Loans.

        (d) On or before the related Sale Date and on any Transfer Date, the Sale Agreement shall be in full force and effect.

        (e) With respect to the Timeshare Loans, the Loan Seller shall apply funds received from Quorum to pay to BXG the Timeshare Loan Acquisition Price for each Timeshare Loan. 

        (f) Each Timeshare Loan conveyed on a Sale Date shall be an Eligible Timeshare Loan and each of the conditions herein and in the Sale Agreement for the purchases of Timeshare Loans shall have been satisfied.

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

        (h) The Loan Seller shall have received such other certificates and opinions as it shall reasonably request.

        
            	
                         

                    	
                        SECTION 5. Representations and Warranties and Certain Covenants of BXG.

                    

        

        (a) BXG represents and warrants to the Loan Seller on each applicable Sale Date (with respect to the applicable Timeshare Loans) and on any Transfer Date (with respect to any Qualified Substitute Timeshare Loans transferred on such Transfer Date) as follows:

         

        PURCHASE AND CONTRIBUTION AGREEMENT, Page 4

         

        

        

        

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

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

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

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

         

        PURCHASE AND CONTRIBUTION AGREEMENT, Page 5

         

        

        

        

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

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

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

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

         

        PURCHASE AND CONTRIBUTION AGREEMENT, Page 6

         

        

        

        

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

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

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

         

        PURCHASE AND CONTRIBUTION AGREEMENT, Page 7

         

        

        

        

        (xii)     Employee Benefit Plan Liability. As of each Sale Date and each Transfer Date, as applicable, (A) with respect to plan years beginning before January 1, 2008, neither BXG nor any of its Commonly Controlled Affiliates incurred any “accumulated funding deficiency” (as such
        term was defined under ERISA and the Code for such years), whether or not waived, with respect to any “Employee Pension Benefit Plan” (as defined below) that either individually or in the aggregate could Cause a Material Adverse Effect (as defined below), and, to BXG’s Knowledge, for any such year, no event has occurred or circumstance exists that resulted, or may result, in any accumulated funding
        deficiency of any such plan that either individually or in the aggregate could Cause a Material Adverse Effect; (B) with respect to plan years beginning after December 31, 2007, neither BXG nor any of its Commonly Controlled Affiliates has any unpaid “minimum required contribution” (as such term is defined under ERISA and the Code) with respect to any Employee Pension Benefit Plan, whether or not such unpaid minimum required contribution is waived, that either individually
        or in the aggregate could Cause a Material Adverse Effect, and, to BXG’s Knowledge, no event has occurred or circumstance exists that may result in any unpaid minimum required contribution as of the last day of the current plan year of any such plan that either individually or in the aggregate could Cause a Material Adverse Effect; (C) BXG and each of its Commonly Controlled Affiliates have no outstanding liability for any undisputed contribution required
        under any BXG Multiemployer Plan (as defined below) that either individually or in the aggregate could Cause a Material Adverse Effect; and (D) BXG and each of its Commonly Controlled Affiliates have no outstanding liability for any disputed contribution required under any BXG Multiemployer Plan that either individually or in the aggregate could Cause a Material Adverse Effect. As of each Sale Date and Transfer Date, as applicable, to the BXG’s Knowledge (1) neither BXG
        nor any of its Commonly Controlled Affiliates has incurred any Withdrawal Liability (as defined below) that either individually or in the aggregate could Cause a Material Adverse Effect, and (2) no event has occurred or circumstance exists that could result in any Withdrawal Liability that either individually or in the aggregate could Cause a Material Adverse Effect. As of each Sale Date and Transfer Date, as applicable, to BXG’s Knowledge,
        neither BXG nor any of its Commonly Controlled Affiliates has received notification of the reorganization, termination, partition, or insolvency of any Multiemployer Plan that could either individually or in the aggregate Cause a Material Adverse Effect. For purposes of this clause (a)(xii), “Cause a Material Adverse Effect” means to reasonably be expected to result in a material adverse effect on BXG and its Commonly Controlled Affiliates, in the aggregate;
        “Commonly Controlled Affiliates” means those direct or indirect Affiliates of BXG that would be considered a single employer with BXG under Section 414(b), (c), (m), or (o) of the Code; “Employee Pension Benefit Plan” means an employee pension benefit plan as such term is defined in Section 3(2) of ERISA that is sponsored, maintained or contributed to by BXG or any of its Commonly Controlled Affiliates (other than a BXG Multiemployer Plan);
        “Multiemployer Plan” means a multiemployer plan as such term is defined in Section 3(37) of ERISA; “BXG Multiemployer Plan” means a Multiemployer Plan to which BXG or any of its Commonly Controlled Affiliates contributes or in which BXG or any of its Commonly Controlled Affiliates participates; and “Withdrawal Liability” means liability as determined under ERISA for the complete or partial withdrawal of BXG or any of its Commonly
        Controlled Affiliates from a Multiemployer Plan.

        (xiii)    Taxes. Other than as described on Schedule II attached hereto and as disclosed in its most recent SEC filings, as of the Closing Date, it (i) has filed all tax returns (federal, state and local) which it reasonably believes are required
        to be filed and has paid or made adequate provision in its GAAP financial statements for the payment of all taxes, assessments and other governmental charges due from it or is contesting any such tax, assessment or other governmental charge in good faith through appropriate proceedings or except where the failure to file or pay will not have a material adverse effect on the rights and interests of the Loan Seller, (ii) knows of no basis for any material additional tax assessment for any
        fiscal year for which adequate reserves in its GAAP financial statements have not been established and (iii) intends to pay all such taxes, assessments and governmental charges, if any, when due.]

        (xiv)    Place of Business. The principal place of business and chief executive office where it keeps its records concerning Timeshare Loans shall be 4960 Conference Way North, Suite 100, Boca Raton, Florida 33431 (or such other place specified by it by written notice to the Loan Seller and
        Quorum). BXG is a corporation formed under the laws of the Commonwealth of Massachusetts.

         

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

        
            	
                         

                    	
                        (xvi)

                    	
                        Bluegreen Vacation Club. With respect to the Deeded Club Loans:

                    

        

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

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

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

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

         

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

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

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

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

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

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

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

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

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

         

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        (b) BXG hereby makes the representations and warranties relating to the Timeshare Loans contained in Schedule I hereto for the benefit of the Loan Seller and Quorum as of each Sale Date (with respect to the Timeshare Loans transferred on such Sale Date) and as of each Transfer Date (only with respect to each Qualified Substitute
        Timeshare Loan transferred on such Transfer Date), as applicable.

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

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

        
            	
                         

                    	
                        SECTION 6. 

                    	
                        Repurchases and Substitutions.

                    

        

                     (a) Mandatory Repurchases and Substitutions for Breaches of Representations and Warranties. Upon the receipt of notice by BXG from the Loan Seller or Quorum, of a breach of any of the representations and warranties in Section 5 hereof (on the date on which
        such representation or warranty was made) which materially and adversely affects the value of a Timeshare Loan or the interests of the Loan Seller or any subsequent assignee of the Loan Seller (including Quorum) therein, BXG shall, within sixty (60) days of receipt of such notice, cure in all material respects the circumstance or condition which has caused such representation or warranty to be incorrect or if the breach relates to a particular Timeshare Loan and is not cured in all
        material respects (such Timeshare Loan, a “Defective Timeshare Loan”) either, at BXG’s option, (i) repurchase such Defective Timeshare Loan at the Repurchase Price, or (ii) provide one or more Qualified Substitute Timeshare Loans and pay the related Substitution Shortfall Amounts, if any. BXG acknowledges that the Loan Seller shall, pursuant to the Sale Agreement sell Timeshare Loans and rights and remedies acquired
        hereunder to Quorum. BXG further acknowledges that Quorum shall be appointed attorney-in-fact under the Sale Agreement and may enforce BXG’s repurchase or substitution obligations if BXG has not complied with its repurchase or substitution obligations under this Agreement within the aforementioned sixty (60)-day period.

         

        PURCHASE AND CONTRIBUTION AGREEMENT, Page 11

         

        

        

        

        (b) Optional Purchases or Substitutions of Club Loans. The Loan Seller hereby irrevocably grants to BXG an option to repurchase or substitute Original Club Loans as described in the following sentence. With respect to any Original Club Loans for which the related Obligor has elected to effect and BXG has agreed to effect an Upgrade, BXG shall (at its option)
        either (i) pay the Repurchase Price for such Original Club Loan or (ii) substitute one (1) or more Qualified Substitute Timeshare Loans for such Original Club Loan and pay the related Substitution Shortfall Amounts, if any; provided, however, that BXG’s option to substitute one (1) or more Qualified Substitute Timeshare Loans for an Original Club Loan is limited on any date to (x)
        twenty percent (20%) of the Cut-off Date Loan Balances of the then Aggregate Sale Date Loan Pool less (y) the aggregate Loan Balances of all Original Club Loans previously substituted by BXG on prior Transfer Dates pursuant to this Agreement and/or the Sale Agreement. BXG shall use its best efforts to exercise its substitution option with respect to Original Club Loans prior to exercise of its repurchase option. To the extent that BXG shall elect to substitute Qualified Substitute
        Timeshare Loans for an Original Club Loan, BXG shall use its best efforts to cause each such Qualified Substitute Timeshare Loan to be, in the following order of priority, (i) the Upgrade Club Loan related to such Original Club Loan and (ii) an Upgrade Club Loan unrelated to such Original Club Loan. 

        (c)Optional Purchases or Substitutions of Defaulted Timeshare Loans. The Loan Seller hereby irrevocably grants to BXG an option to repurchase or substitute Defaulted Timeshare Loans it has under the Sale Agreement as described in the following sentence. With respect to Defaulted Timeshare Loans on any date, BXG shall have the option,
        but not the obligation, to either (i) purchase such Defaulted Timeshare Loan at the Repurchase Price for such Defaulted Timeshare Loan or (ii) substitute one (1) or more Qualified Substitute Timeshare Loans for such Defaulted Timeshare Loan and pay the related Substitution Shortfall Amount, if any; provided, however, that BXG’s option to purchase a Defaulted Timeshare Loan or to
        substitute one (1) or more Qualified Substitute Timeshare Loans for a Defaulted Timeshare Loan is limited on any date to the Optional Purchase Limit and the Optional Substitution Limit, respectively. BXG may irrevocably waive its option to purchase or substitute a Defaulted Timeshare Loan by delivering to Quorum a Waiver Letter in the form of Exhibit A attached hereto.

        (d) Payment of Repurchase Prices and Substitution Shortfall Amounts. BXG hereby agrees to remit or cause to be remitted all amounts in respect of Repurchase Prices and Substitution Shortfall Amounts payable during the related Due Period in immediately available funds to be deposited in the Collection Account on the Business Day immediately preceding the
        related Distribution Date for such Due Period in accordance with the provisions of the Sale Agreement. In the event that more than one (1) Timeshare Loan is replaced pursuant to Sections 6(a), (b) or (c) hereof on any Transfer Date, the Substitution Shortfall Amounts and the Loan Balances of Qualified Substitute Timeshare Loans shall be calculated on an aggregate basis for all substitutions made on such Transfer Date. 

         

        PURCHASE AND CONTRIBUTION AGREEMENT, Page 12

         

        

        

        

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

        (f)  Qualified Substitute Timeshare Loans. Pursuant to Section 6(g) hereof, on the related Transfer Date, BXG hereby agrees to deliver or to cause the delivery of the Timeshare Loan Files relating to the Qualified Substitute Timeshare Loans to the Custodian, in accordance with the provisions of the Sale Agreement and the
        Custodial Agreement. As of such related Transfer Date, BXG does hereby transfer, assign, sell and grant to the Loan Seller, without recourse (except as provided in Section 6 and Section 8 hereof), any and all of BXG’s right, title and interest in and to (but not including the Deferred Purchase Price or any proceeds thereof) (i) each Qualified Substitute Timeshare Loan conveyed to the Loan Seller on such Transfer Date, (ii) the Receivables in respect of the
        Qualified Substitute Timeshare Loans due after the related Cut-Off Date, (iii) the related Timeshare Loan Documents (excluding any rights as developer or declarant under the Timeshare Declaration, the Timeshare Program Consumer Documents or the Timeshare Program Governing Documents), (iv) all Related Security in respect of such Qualified Substitute Timeshare Loans and (v) all income, payments, proceeds and other benefits and rights related to any of the foregoing (the property in
        clauses (i)-(v), being the “QSTL Assets”). Upon such sale, the ownership of each Qualified Substitute Timeshare Loan and all collections allocable to principal and interest thereon after the related Cut-Off Date and all other property interests or rights conveyed pursuant to and referenced in this Section 6(f) shall immediately vest in the Loan Seller, its successors and assigns. BXG shall not take any action inconsistent
        with such ownership nor claim any ownership interest in any Qualified Substitute Timeshare Loan for any purpose whatsoever other than consolidated federal and state income and franchise tax reporting, if applicable, and financial reporting in accordance with GAAP. The parties to this Agreement hereby acknowledge that the “credit risk” of the Timeshare Loans (including any Qualified Substitute Timeshare Loan) conveyed hereunder shall be borne by the Loan Seller and its
        subsequent assignees. BXG agrees that such Qualified Substitute Timeshare Loans shall be subject to the provisions of this Agreement and shall thereafter be deemed a “Timeshare Loan” for the purposes of this Agreement.

        (g) Officer’s Certificate for Qualified Substitute Timeshare Loans. BXG shall, on each related Transfer Date, certify or cause to be certified in writing to the Loan Seller and Quorum that each new Timeshare Loan meets all the criteria of the definition of “Qualified Substitute Timeshare Loan” and that (i) the
        Timeshare Loan Files for such Qualified Substitute Timeshare Loans have been delivered to the Custodian or shall be delivered within five (5) Business Days from the applicable Transfer Date, and (ii) the Timeshare Loan Servicing Files for such Qualified Substitute Timeshare Loans have been delivered to the Servicer.

        (h) Release. In connection with any repurchase, purchase or substitution of one (1) or more Timeshare Loans contemplated by this Section 6, upon satisfaction of the conditions contained in this Section 6, the Loan Seller and Quorum shall execute and deliver or shall cause the execution and delivery of such releases and instruments of transfer or assignment presented to it by
        BXG, in each case without recourse, as shall be necessary to vest in BXG or its designee the legal and beneficial ownership of such Timeshare Loans. The Loan Seller and Quorum shall cause the Custodian to release the related Timeshare Loan Files to BXG or its designee and the Servicer to release the related Timeshare Loan Servicing Files to BXG or its designee.

         

        PURCHASE AND CONTRIBUTION AGREEMENT, Page 13

         

        

        

        

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

        SECTION 7. Additional Covenants of BXG. BXG hereby covenants and agrees with the Loan Seller as follows:

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

        (b) It shall preserve and maintain its existence (company or otherwise), rights, franchises and privileges in the jurisdiction of its organization and except where the failure to so preserve and maintain will not have a material adverse effect on its business or its ability to perform its obligations under this Agreement or any other Transaction Document to which it is a party or under
        the transactions contemplated hereunder or thereunder or the validity or enforceability of the Timeshare Loans.

        (c) On each Sale Date or Transfer Date, as applicable, it shall indicate in its and its Affiliates’ computer files and other records that each Timeshare Loan has been sold to the Loan Seller.

        (d) It shall respond to any inquiries with respect to ownership of a Timeshare Loan by stating that such Timeshare Loan has been sold to the Loan Seller and that the Loan Seller is the owner of such Timeshare Loan.

        (e) On or prior to the initial Sale Date, it shall file or cause to be filed, at its own expense, financing statements in favor of the Loan Seller and Quorum with respect to the Timeshare Loans in the form and manner reasonably requested by the Loan Seller or its assigns. BXG shall deliver file-stamped copies of such financing statements to the Loan Seller and Quorum.

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

         

        PURCHASE AND CONTRIBUTION AGREEMENT, Page 14

         

        

        

        

        (g) On the Closing Date, BXG does not have any tradenames, fictitious names, assumed names or “doing business as” names other than “Bluegreen Patten Corporation” in North Carolina, “Bluegreen Corporation of Massachusetts” in Louisiana and “BXG California, Inc.” in California. After the Closing Date, any change in the legal name of BXG or
        the use by it of any tradename, fictitious name, assumed name or “doing business as” name other than the foregoing shall be promptly (but no later than ten (10) Business Days) disclosed to the Loan Seller and Quorum in writing.

        (h) Upon the discovery or receipt of notice by a Responsible Officer of BXG of a breach of any of its representations or warranties and covenants contained herein, BXG shall promptly disclose to the Loan Seller, and Quorum, in reasonable detail, the nature of such breach.

        (i) Except to the extent of any payments received with respect to a Credit Card Timeshare Loan, in the event that BXG shall receive any payments in respect of a Timeshare Loan after the Sale Date or a Transfer Date, as applicable, BXG shall, within two (2) Business Days of receipt, transfer or cause to be transferred, such payments to the Lockbox Account. Payments received by BXG with
        respect to Credit Card Timeshare Loans, without regard to any discount fees, shall be transferred to the Lockbox Account within five (5) Business Days. 

        (j) BXG shall keep its principal place of business and chief executive office and the office where it keeps its records concerning the Timeshare Loans at the address listed for it herein in Section 10 and shall notify the parties hereto of any change to the same at least thirty (30) days prior thereto.

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

        (l) BXG authorizes the Loan Seller and Quorum to file continuation statements, and amendments thereto, relating to the Timeshare Loans and (subject to payments of the Deferred Purchase Price) all payments made with regard to the related Timeshare Loans without the signature of the BXG where permitted by law. A copy or other reproduction of this Agreement shall be sufficient as a
        financing statement where permitted by law. The Loan Seller confirms that it is not its present intention to file a photocopy or other reproduction of this Agreement as a financing statement, but reserves the right to do so if, in its good faith determination, there is at such time no reasonable alternative remaining to it.

         

        PURCHASE AND CONTRIBUTION AGREEMENT, Page 15

         

        

        

        

        
            	
                         

                    	
                        SECTION 8. Indemnification.

                    

        

        (a) BXG agrees to indemnify the Loan Seller and Quorum (collectively, the “Indemnified Parties”)against any and all claims, losses, liabilities, (including reasonable legal fees and related costs) that the Loan Seller or Quorum may sustain directly related to any breach of the representations and
        warranties of BXG under Section 5 hereof (the “Indemnified Amounts”) excluding, however(i) Indemnified Amounts to the extent resulting from the gross negligence or willful misconduct on the part of such Indemnified Party; (ii) any recourse for any uncollectible Timeshare Loan not related to a breach of representation or
        warranty; (iii) recourse to BXG for a Defective Timeshare Loan so long as the same is cured, substituted or repurchased pursuant to Section 6 hereof, (iv) income, franchise or similar taxes by such Indemnified Party arising out of or as a result of this Agreement or the transfer of the Timeshare Loans; (v) Indemnified Amounts attributable to any violation by an Indemnified Party of any Requirement of Law related to an Indemnified Party; or (vi) the operation or administration of the
        Indemnified Party generally and not related to the enforcement of this Agreement. BXG shall (A) promptly notify the Loan Seller and Quorum if a claim is made by a third party with respect to this Agreement or the Timeshare Loans, and relating to (i) the failure by BXG to perform its duties in accordance with the terms of this Agreement or (ii) a breach of BXG’s representations, covenants and warranties contained in this Agreement, (B) assume (with the consent of the Loan Seller or
        Quorum, as applicable, which consent shall not be unreasonably withheld) the defense of any such claim and (C) pay all expenses in connection therewith, including reasonable legal counsel fees and promptly pay, discharge and satisfy any judgment, order or decree which may be entered against it or the Loan Seller or Quorum in respect of such claim. If BXG shall have made any indemnity payment pursuant to this Section 8 and the recipient thereafter collects from another Person any amount
        relating to the matters covered by the foregoing indemnity, the recipient shall promptly repay such amount to BXG.

        (b) The obligations of BXG under this Section 8 to indemnify the Loan Seller and Quorum shall survive the Closing Date of this Agreement and continue until the Agreement Termination Date.

        SECTION 9. No Proceedings. BXG hereby agrees that it shall not, directly or indirectly, institute, or cause to be instituted, or join any Person in instituting, against the Loan Seller or any Association, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any federal or state bankruptcy or similar
        law so long as there shall not have elapsed one (1) year plus one (1) day since the latest maturing Notes issued by the Issuer.

        SECTION 10.Notices, Etc. All notices and other communications provided for hereunder shall, unless otherwise stated herein, be in writing and mailed or telecommunicated, or delivered as to each party hereto, at its address set forth below or at such other address as shall be designated by such party in a written notice to the other parties hereto. All such
        notices and communications shall not be effective until received by the party to whom such notice or communication is addressed.

         

        PURCHASE AND CONTRIBUTION AGREEMENT, Page 16

         

        

        

        

        
            	
                         

                    	
                        Seller

                    

        

         

        
            	
                         

                    	
                        Bluegreen Corporation

                    

        

        
            	
                         

                    	
                        4960 Conference Way North, Suite 100

                    

        

        
            	
                         

                    	
                        Boca Raton, Florida 33431

                    

        

        
            	
                         

                    	
                        Attention: Anthony M. Puleo, Vice President & Treasurer

                    

        

        
            	
                         

                    	
                        Fax: (561) 912-8123

                    

        

        Loan Seller

         

        
            	
                         

                    	
                        BRFC-Q 2010 LLC

                    

        

        
            	
                         

                    	
                        4950 Communication Avenue, Suite 900

                    

        

        
            	
                         

                    	
                        Boca Raton, Florida 33431

                    

        

        
            	
                         

                    	
                        Attention: Allan J. Herz, President & Assistant Treasurer

                    

        

        
            	
                         

                    	
                        Fax: (561) 443-8743

                    

        

        SECTION 11. No Waiver; Remedies. No failure on the part of BXG, the Loan Seller or any assignee thereof to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right. The remedies
        herein provided are cumulative and not exclusive of any other remedies provided by law.

        SECTION 12.   Binding Effect; Assignability. This Agreement shall be binding upon and inure to the benefit of the Loan Seller and its respective successors and assigns. Any assignee of the Loan Seller shall be an express third party beneficiary of this Agreement, entitled to directly enforce this Agreement. BXG may not assign any of its rights
        and obligations hereunder or any interest herein without the prior written consent of the Loan Seller and any assignee thereof. The Loan Seller may, and intends to, assign all of its rights hereunder to Quorum and BXG consents to any such assignment. This Agreement shall create and constitute the continuing obligations of the parties hereto in accordance with its terms, and shall remain in full force and effect from the Closing Date until the Agreement Termination Date;
        provided, however, that the rights and remedies with respect to any breach of any representation and warranty made by BXG (as of the date on which such representation or warranty was made) pursuant to Section 5 and the repurchase or substitution and indemnification obligations shall be continuing and shall survive any termination of this Agreement but such rights and remedies may be
        enforced only by the Loan Seller and Quorum.

        SECTION 13, Amendments; Consents and Waivers. No modification, amendment or waiver of, or with respect to, any provision of this Agreement, and all other agreements, instruments and documents delivered pursuant thereto, nor consent to any departure by BXG from any of the terms or conditions thereof shall be effective unless it shall be in writing and signed
        by each of the parties hereto and the written consent of Quorum is given. BXG shall provide Quorum with such proposed modifications, amendments or waivers. Any waiver or consent shall be effective only in the specific instance and for the purpose for which given. No consent to or demand by BXG in any case shall, in itself, entitle it to any other consent or further notice or demand in similar or other circumstances. BXG acknowledges that in connection with the intended sale by the Loan
        Seller of all of its right, title and interest in and to each Timeshare Loan to Quorum, the proceeds of which shall be used by the Loan Seller to purchase the Timeshare Loans from BXG. 

         

        PURCHASE AND CONTRIBUTION AGREEMENT, Page 17

         

        

        

        

        SECTION 14.   Severability. In case any provision in or obligation under this Agreement shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation, shall not in any way be affected or impaired thereby in any other
        jurisdiction. Without limiting the generality of the foregoing, in the event that a Governmental Authority determines that the Loan Seller may not purchase or acquire Timeshare Loans, the transactions evidenced hereby shall constitute a loan and not a purchase and sale and contribution to capital, notwithstanding the otherwise applicable intent of the parties hereto, and BXG shall be deemed to have granted to the Loan Seller as of the date hereof, a first priority perfected security
        interest in all of BXG’s right, title and interest in, to and under the Assets and QSTL Assets.

        
            	
                         

                    	
                        SECTION 15. GOVERNING LAW; CONSENT TO JURISDICTION.

                    

        

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

        (B)      THE PARTIES TO THIS AGREEMENT HEREBY SUBMIT TO THE NON-EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE UNITED STATES DISTRICT COURT LOCATED IN THE BOROUGH OF MANHATTAN IN NEW YORK CITY AND EACH PARTY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS UPON IT AND CONSENTS THAT ALL SUCH SERVICE OF PROCESS BE MADE
        BY REGISTERED MAIL DIRECTED TO ITS ADDRESS SET FORTH IN SECTION 10 HEREOF AND SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETED FIVE (5) DAYS AFTER THE SAME SHALL HAVE BEEN DEPOSITED IN THE U.S. MAILS, POSTAGE PREPAID. THE PARTIES HERETO EACH WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS, AND ANY OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED
        APPROPRIATE BY THE COURT. NOTHING IN THIS SECTION 15 SHALL AFFECT THE RIGHT OF THE PARTIES TO THIS AGREEMENT TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR AFFECT THE RIGHT OF ANY OF THEM TO BRING ANY ACTION OR PROCEEDING IN THE COURTS OF ANY OTHER JURISDICTION.

        SECTION 16. WAIVERS OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING DIRECTLY OR INDIRECTLY TO THIS AGREEMENT OR ANY OTHER DOCUMENT OR INSTRUMENT RELATED HERETO AND FOR ANY COUNTERCLAIM
        THEREIN.

         

        PURCHASE AND CONTRIBUTION AGREEMENT, Page 18

         

        

        

        

        SECTION 17. Heading. The headings herein are for purposes of reference only and shall not otherwise affect the meaning or interpretation of any provision hereof.

        SECTION 18, Execution in Counterparts. This Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and both of which when taken together shall constitute one and the same agreement. Delivery of an executed counterpart of this Agreement by facsimile or other electronic
        transmission (i.e., a “pdf” or “tif” file) shall be as effective a delivery as a manually executed counterpart hereof.

         

         

        [Signature Pages Follow]

         

        PURCHASE AND CONTRIBUTION AGREEMENT, Page 19

         

        

        

        

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

         

        BRFC-Q 2010 LLC, as Loan Seller

         

        By:_______________________________________

        Name: Allan J. Herz

        Title: President and Assistant Treasurer

         

        BLUEGREEN CORPORATION,

         

        By:_______________________________________

        Name: Anthony M. Puleo

        Title: Senior Vice President, CFO and Treasurer

        Agreed and acknowledged as to 

        Section 3(c) 

        herein only:

        BLUEGREEN VACATION CLUB TRUST

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

        By:_______________________________________

        Name: Tonya Wardak

        Title: Vice President, Treasurer and Secretary

         

        Signature Page to Purchase and Contribution Agreement

        

        

        

        

        Schedule I  

        Representations and Warranties Regarding the Timeshare Loans

        With respect to each Timeshare Loan in a Sale Date Loan Pool, unless otherwise stated, as of the related Sale Date or Transfer Date applicable to such Timeshare Loan:

         

        
            	 	
                        (a) 

                    	
                        the Obligor is an Eligible Borrower;

                    
	 	
                        (b) 

                    	
                        the Obligor is personally liable on the Timeshare Loan;

                    
	 	
                        (c) 

                    	
                        the Timeshare Loan is not a Sampler Loan;

                    
	 	(d) 	payments due under the Timeshare Loan are fully-amortizing and payable in level monthly installments; 
	
                         

                    	
                        (e)

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

                    

        

        
            	
                         

                    	
                        (f)

                    	
                        the Obligor thereunder has made a down payment by cash, check, credit card or otherwise of at least ten percent (10%) of the original purchase price of the Timeshare Property (which cash down payment may, (i) in the case of an Upgrade, be represented in whole or in part by the down payment made and principal payments paid in respect of the related
                        Original Club Loan, (ii) in the case of a Sampler Converted Loan, be represented in whole or in part by the principal payments and down payment made on the related Sampler Loan since its date of origination and (iii) in the case of an Upgrade or Sampler Conversion, be represented in whole or in party by the amount paid where the Obligor has paid in full at the point of sale for the original Timeshare Property or “Sampler Membership”, as applicable) and no
                        part of such payment has been made or loaned to the Obligor by BXG or an Affiliate thereof;

                    

        

        
            	
                         

                    	
                        (g)

                    	
                        as of the related Cut-Off Date, no principal or interest due with respect to the Timeshare Loan is more than thirty (30) days delinquent;

                    

        

        
            	
                         

                    	
                        (h)

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

                    

        

        
            	
                         

                    	
                        (i)

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

                    

        

         

        I-1 

        

        

        

        
            	
                         

                    	
                        (j)

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

                    

        

        
            	
                         

                    	
                        (k)

                    	
                        with respect to each Deeded Club Loan, the applicable Assignment of Mortgage and each related endorsement of the related Mortgage Note constitutes a duly executed, legal, valid, binding and enforceable assignment or endorsement, as the case may be, of such related Mortgage and related Mortgage Note, and all monies due or to become due thereunder, and all
                        proceeds thereof;

                    

        

        
            	
                         

                    	
                        (l)

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

                    

        

        
            	
                         

                    	
                        (m)

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

                    

        

        
            	
                         

                    	
                        (n)

                    	
                        if a Mortgage secures a Timeshare Loan, the title to the related Timeshare Property is insured (or a binding commitment, which may be a master commitment referencing one or more Mortgages, for title insurance, not subject to any conditions other than standard conditions applicable to all binding commitments, has been issued) under a mortgagee title
                        insurance policy (which may consist of one master policy referencing one or more such Mortgages) issued by a title insurer qualified to do business in the jurisdiction where the related Timeshare Property is located in a form generally acceptable to prudent originators of similar mortgage loans, insuring BXG or its predecessor and its successors and assigns, as to the first priority mortgage Lien of the related Mortgage in an amount equal to the original outstanding Loan
                        Balance of such Timeshare Loan; and BXG and its assignees is a named insured of such mortgagee’s title insurance policy;

                    

        

         

        I-2 

        

        

        

        
            	
                         

                    	
                        (o)

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

                    

        

        
            	
                         

                    	
                        (p)

                    	
                        the terms of each related Timeshare Loan Document have not been impaired, waived, altered or modified in any respect, except (x) by written instruments which are part of the related Timeshare Loan Documents or (y) in accordance with the Credit Policy applicable at the time of origination, the Collection Policy or the Servicing Standard (provided that no
                        Timeshare Loan has been impaired, waived, altered, or modified in any respect more than once). No other instrument has been executed or agreed to which would effect any such impairment, waiver, alteration or modification; the Obligor has not been released from liability on or with respect to the Timeshare Loan, in whole or in part; if required by law or prudent originators of similar loans in the jurisdiction where the related Timeshare Property is located, all waivers,
                        alterations and modifications have been filed and/or recorded in all places necessary to perfect, maintain and continue a valid first priority Lien of the related Mortgage, subject only to Permitted Liens;

                    

        

        
            	
                         

                    	
                        (q)

                    	
                        the Timeshare Loan was originated by or on behalf of the applicable Originator in the normal course of its business; the Timeshare Loan originated by or on behalf of the applicable Originator was underwritten in accordance with its credit policy in effect at such time (or the credit policy of its Affiliates); and to BXG’s Knowledge, the
                        origination, servicing and collection practices used by BXG or its Affiliates with respect to the Timeshare Loan have been in all respects, legal, proper, prudent and customary;

                    

        

        
            	
                         

                    	
                        (r)

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

                    

        

        
            	
                         

                    	
                        (s)

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

                    

        

         

        I-3

        

        

        

        
            	
                         

                    	
                        (t)

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

                    

        

        
            	
                         

                    	
                        (u)

                    	
                        no selection procedures were intentionally utilized by BXG in selecting the Timeshare Loan which BXG knew were materially adverse to the Loan Seller;

                    

        

        
            	
                         

                    	
                        (v)

                    	
                        the Units related to the Timeshare Loan in the related Resort are Completed Units, free of all defects that could give rise to any claims by the related Obligors under home warranties or applicable laws or regulations, whether or not such claims would create valid offset rights under the law of the State in which the Resort is located; BXG or developer
                        has complied in all material respects with all obligations and duties incumbent upon the developers under the related timeshare declaration, as applicable, or similar applicable documents for the related Resort;

                    

        

        
            	
                         

                    	
                        (w)

                    	
                        the total maximum remaining principal balance of all Timeshare Loans to any one Obligor does not exceed one hundred thousand dollars ($100,000) in the aggregate;

                    

        

        
            	
                         

                    	
                        (x)

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

                    

        

        
            	
                         

                    	
                        (y)

                    	
                        the Timeshare Loan relates to a Resort;

                    

        

        
            	
                         

                    	
                        (z)

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

                    

        

        
            	
                         

                    	
                        (aa)

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

                    

        

        
            	
                         

                    	
                        (bb)

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

                    

        

        
            	
                         

                    	
                        (cc)

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

                    

        

         

        I-4 

        

        

        

        
            	
                         

                    	
                        (dd)

                    	
                        the Timeshare Loan does not have an original term to maturity in excess of one hundred twenty (120) months;

                    

        

        
            	
                         

                    	
                        (ee)

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

                    

        

        
            	
                         

                    	
                        (ff)

                    	
                        all of the related Timeshare Loan Servicing Files for such Timeshare Loan have on or prior to, as applicable, the related Sale Date or the related Transfer Date been obtained by the Servicer; and all of the related Timeshare Loan Files are, in the case of a Timeshare Loan, in the possession of the Custodian on or prior to the related Sale Date, or, in
                        the case of a Qualified Substitute Timeshare Loan, shall be in the possession of the Custodian within five (5) Business Days of the related Transfer Date; provided, however, that, (1) with respect to fifty percent (50%) of the Timeshare Loan Files relating to the Aggregate Sale Date Loan Pool, the related (a) original recorded Mortgage, (ii) original recorded Assignment of Mortgage (which may consist of one master
                        assignment referencing one or more of such assignments with copies provided separately by the Servicer) and (iii) the final original lender’s title insurance policy (which may consist of one master policy referencing one or more such mortgages), if not sooner delivered, shall be delivered to the Custodian not later than four (4) months from the related Sale Date or Transfer Date, (2) with respect to ninety percent
                        (90%) of the Timeshare Loan Files relating to the Aggregate Sale Date Loan Pool, the related (a) original recorded Mortgage, (ii) original recorded Assignment of Mortgage (which may consist of one master assignment referencing one or more of such assignments with copies provided separately by the Servicer) and (iii) the final original lender’s title insurance policy (which may consist of one master policy referencing one or more such mortgages), if not sooner
                        delivered, shall be delivered to the Custodian not later than six (6) months from the related Sale Date or Transfer Date, and (3) with respect to one hundred percent (100%) of the Timeshare Loan Files relating to the Aggregate Sale Date Loan Pool, the related (a) original recorded Mortgage, (ii) original recorded Assignment of Mortgage (which may consist of one master assignment referencing one or more of such
                        assignments with copies provided separately by the Servicer) and (iii) the final original lender’s title insurance policy (which may consist of one master policy referencing one or more such mortgages), if not sooner delivered, shall be delivered to the Custodian not later than twelve (12) months from the related Sale Date or Transfer Date;

                    

        

        
            	
                         

                    	
                        (gg)

                    	
                        the Timeshare Loan is not subject to an annual percentage rate of interest (APR) reflected in the related truth-in-lending disclosure statement or similar disclosure form greater than eighteen percent (18%); 

                    

        

         

        I-5 

        

        

        

        
            	
                         

                    	
                        (hh)

                    	
                        the percentage of Timeshare Loans where the Obligor is not a resident of the United States, Canada, Puerto Rico, U.S. military bases or U.S. Territories (“Non-United States Obligors”) does not exceed two percent (2%) of the Aggregate Loan Balance of Timeshare Loans in the applicable Sale Date Loan Pool;

                    

        

         

        
            	
                         

                    	
                        (ii)

                    	
                        the percentage of non-Deeded Club Loans that pertain to a Timeshare Property relating to a finite use period (“Finite Use Period”) in a Sale Date Loan Pool shall not exceed two percent (2%) of the Aggregate Loan Balance of all of the Timeshare Loans in such Sale Date Loan Pool and the term of any such non-Deeded Club Loan shall not extend
                        beyond any related Finite Use Period;

                    

        

        
            	
                         

                    	
                        (jj)

                    	
                        the minimum FICO Score for each Obligor with a FICO Score under the related Timeshare Loan must be at least 575;

                    

        

        
            	
                         

                    	
                        (kk)

                    	
                        the Mortgage Note related to the Timeshare Loan may be prepaid in full without penalty; and 

                    

        

        
            	
                         

                    	
                        (ll)

                    	
                        the related Obligor is required pursuant to the related Owner Beneficiary Agreement and the Club Bylaws to pay Common Assessment Fees (as defined in the Club Trust Agreement) to the Club Association.

                    

        

         

        I-6 

        

        

        

        Schedule II

         

        Pending Litigation and Other Proceedings

         

        II-1

        

        

        

        Exhibit A

        Form of Waiver Letter

        Date:

        U.S. Bank National Association, as Custodian of Quorum Federal Credit Union

        1133 Rankin Street, Suite 100

        St. Paul, Minnesota 55116

         

        Quorum Federal Credit Union

        2 Manhattanville Road, Suite 104

        Purchase, New York 10577

         

        BRFC-Q 2010 LLC,

        4950 Communication Avenue, Suite 900

        Boca Raton, Florida 33431

         

        
            	
                        Attention:

                    	
                        Document Custody Services 

                    

        

        Quorum Federal Credit Union

        In accordance with Section 6(c) of that certain Purchase and Contribution Agreement (the “Purchase Agreement”), dated as of December 22, 2010, by and between Bluegreen Corporation and BRFC-Q 2010 LLC, the undersigned hereby irrevocably waives its option to repurchase and/or substitute any Defaulted Timeshare Loan listed on Exhibit A
        attached hereto.

         

        Capitalized terms used herein but not defined shall have the meanings ascribed to them in the Purchase Agreement.

         

        IN WITNESS WHEREOF, the undersigned has caused its name to be signed hereby by its duly authorized officer, as of the day and year written above.

         

        BLUEGREEN CORPORATION

        By:_____________________________________

        Name: ___________________________________

        Title: ____________________________________

         

         

        Exhibit A

        

        

        

        Exhibit B

        Club Trust Agreement

         

         

        Exhibit B

        

        

        

        Exhibit C

        ACH Form

         

        BLUEGREEN CORPORATION

        Authorization to Start ACH Payment Processing

         

        NOTE: In the case of an equity trade, pre-authorized withdrawal (PAC) will continue on existing loan until new loan is active. Any payment received on the existing loan after the closing date of the new loan will be applied to the principal of the new loan.

         

        INSTRUCTIONS: 

         

        
            	
                        1. 

                    	
                        Complete authorization. Name and address of bank must be completed below. *

                    

        

        
            	
                        2. 

                    	
                        Attach a payer's blank check marked "VOID" 

                    

        

         

        
            	
                         

                        PLEASE TAPE A VOID CHECK TO THIS AREA

                        (DO NOT USE STAPLES)

                         

                         

                        Bank Routing No. _____/_____/_____/_____/_____/_____/_____/_____/_____

                         

                        Bank Account No. _________________________________________________

                         

                         

                    

        

         

        	CONTRACT NO. 	AUTHORIZATION
	
                    Name of Depositor 

                	
                    (PRlNT AS SHOWN ON BANK RECORDS)

                

         

        	
                     

                

         

        To the Bank Specified Below: I authorize you to pay checks or electronic or other orders ("Withdrawals") drawn or initiated by __________________________________________ or its designee and payable to it or its designee and to charge the same to my account with you which is identified below. This authorization will remain in effect until revoked by me in writing. Until you actually receive notice of such
        revocation, I agree that you shall be fully protected in honoring any such Withdrawal. I agree that your treatment of each Withdrawal, and your rights in respect to it, shall be the same as if it were signed or initiated personally by me. 

         

        	
                    X

                

        Signature of depositor(s) shown on bank records for account to which this authorization is applicable 

         

        	
                    Name and Address of bank (or branch) 

                    where account is maintained. Include 

                    zip code. 

                     

                    

                    

                	 

         

         

        Exhibit CEXECUTION COPY

LOAN SALE AND SERVICING AGREEMENT

by and among

BBCV RECEIVABLES-Q 2010 LLC,

a Delaware limited liability company, as
Seller,

QUORUM FEDERAL CREDIT UNION,

a federally chartered credit union, as Buyer,

VACATION TRUST, INC.,

a Florida corporation, as Club Trustee,

U.S. BANK NATIONAL ASSOCIATION,

a national banking association, as Custodian
and Paying Agent,

BLUEGREEN CORPORATION,

a Massachusetts corporation, as Servicer,

CONCORD SERVICING CORPORATION,

an Arizona corporation, as Backup Servicer,

Dated as of December 22, 2010

TABLE OF CONTENTS

	
  

 	
  

 	
  

 
	
 ARTICLE I.
 DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

 	
 1

 
	
  

 	
  

 	
  

 
	
 SECTION 1.1.

 	
 General
 Definitions and Usage of Terms

 	
 1

 
	
  

 	
  

 	
  

 
	
 SECTION 1.2.

 	
 Effect of
 Headings and Table of Contents

 	
 2

 
	
  

 	
  

 	
  

 
	
 SECTION 1.3.

 	
 Successors
 and Assigns

 	
 2

 
	
  

 	
  

 	
  

 
	
 SECTION 1.4.

 	
 GOVERNING
 LAW

 	
 2

 
	
  

 	
  

 	
  

 
	
 SECTION 1.5.

 	
 Legal
 Holidays

 	
 2

 
	
  

 	
  

 	
  

 
	
 SECTION 1.6.

 	
 Execution in
 Counterparts

 	
 2

 
	
  

 	
  

 	
  

 
	
 SECTION 1.7.

 	
 Inspection

 	
 2

 
	
  

 	
  

 	
  

 
	
 SECTION 1.8.

 	
 Conveyance
 of Timeshare Loans

 	
 3

 
	
  

 	
  

 	
  

 
	
 SECTION 1.9.

 	
 Closing
 Costs and Expenses

 	
 5

 
	
  

 	
  

 	
  

 
	
 ARTICLE II.

 	
  

 	
 5

 
	
  

 	
  

 	
  

 
	
 SALE AND
 PURCHASE

 	
 5

 
	
  

 	
  

 	
  

 
	
 SECTION 2.1.

 	
 Process

 	
 5

 
	
  

 	
  

 	
  

 
	
 SECTION 2.2.

 	
 Initial
 Program Fee Rate and Maximum Program Fee Rate

 	
 6

 
	
  

 	
  

 	
  

 
	
 SECTION 2.3.

 	
 Combining
 Sale Date Loan Pools

 	
 6

 
	
  

 	
  

 	
  

 
	
 SECTION 2.4.

 	
 Notice of NCUA
 Interest Rate Change

 	
 6

 
	
  

 	
  

 	
  

 
	
 ARTICLE III.

 	
  

 	
 7

 
	
  

 	
  

 	
  

 
	
 CLOSING
 CONDITIONS

 	
 7

 
	
  

 	
  

 	
  

 
	
 SECTION 3.1.

 	
 Conditions
 to be Satisfied for Buyer by Closing Date

 	
 7

 
	
  

 	
  

 	
  

 
	
 SECTION 3.2.

 	
 Conditions
 to be Satisfied for Seller by Closing Date

 	
 9

 
	
  

 	
  

 	
  

 
	
 ARTICLE IV.

 	
  

 	
 10

 
	
  

 	
  

 	
  

 
	
 ACCOUNTS;
 COLLECTION AND APPLICATION OF MONEYS; REPORTS

 	
 10

 
	
  

 	
  

 	
  

 
	
 SECTION 4.1.

 	
 Trust
 Accounts

 	
 10

 

i

	
  

 	
  

 	
  

 
	
 SECTION 4.2.

 	
 Establishment
 and Administration of the Collection Account

 	
 10

 
	
  

 	
  

 	
  

 
	
 SECTION 4.3.

 	
 Distributions

 	
 12

 
	
  

 	
  

 	
  

 
	
 SECTION 4.4.

 	
 Reports to
 Buyer

 	
 13

 
	
  

 	
  

 	
  

 
	
 ARTICLE V.
 ACQUISITION OF TIMESHARE LOANS

 	
 14

 
	
  

 	
  

 	
  

 
	
 SECTION 5.1.

 	
 Delivery of
 Timeshare Loan Files and Timeshare Loan Servicing Files

 	
 14

 
	
  

 	
  

 	
  

 
	
 SECTION 5.2.

 	
 Conditions
 Precedent

 	
 14

 
	
  

 	
  

 	
  

 
	
 SECTION 5.3.

 	
 Conveyance
 of Timeshare Loans

 	
 16

 
	
  

 	
  

 	
  

 
	
 SECTION 5.4.

 	
 Further Action
 Evidencing Sale

 	
 17

 
	
  

 	
  

 	
  

 
	
 ARTICLE VI.

 	
  

 	
 18

 
	
  

 	
  

 	
  

 
	
 SUBSTITUTIONS
 AND REPURCHASES

 	
 18

 
	
  

 	
  

 	
  

 
	
 SECTION 6.1.

 	
 Mandatory
 Substitution and Repurchase of Timeshare Loans

 	
 18

 
	
  

 	
  

 	
  

 
	
 SECTION 6.2.

 	
 Optional
 Purchase or Substitution of Club Loans in connection with Upgrades

 	
 18

 
	
  

 	
  

 	
  

 
	
 SECTION 6.3.

 	
 Optional
 Purchase or Substitution of Defaulted Timeshare Loans

 	
 19

 
	
  

 	
  

 	
  

 
	
 SECTION 6.4.

 	
 Payment of
 Repurchase Prices and Substitution Shortfall Amounts

 	
 19

 
	
  

 	
  

 	
  

 
	
 SECTION 6.5.

 	
 Schedule of
 Timeshare Loans

 	
 19

 
	
  

 	
  

 	
  

 
	
 SECTION 6.6.

 	
 Officer’s Certificate

 	
 19

 
	
  

 	
  

 	
  

 
	
 SECTION 6.7.

 	
 Qualified
 Substitute Timeshare Loans

 	
 19

 
	
  

 	
  

 	
  

 
	
 SECTION 6.8.

 	
 Release

 	
 20

 
	
  

 	
  

 	
  

 
	
 SECTION 6.9

 	
 Sole
 Remedy/Nonrecourse

 	
 20

 
	
  

 	
  

 	
  

 
	
 ARTICLE VII.
 SERVICING OF TIMESHARE LOANS

 	
 20

 
	
  

 	
  

 	
  

 
	
 SECTION 7.1.

 	
 Appointment
 of Servicer and Backup Servicer; Servicing Standard

 	
 20

 
	
  

 	
  

 	
  

 
	
 SECTION 7.2.

 	
 Payments on
 the Timeshare Loans

 	
 21

 
	
  

 	
  

 	
  

 
	
 SECTION 7.3.

 	
 Duties and
 Responsibilities of the Servicer

 	
 21

 

ii

	
  

 	
  

 	
  

 
	
 SECTION 7.4.

 	
 Servicer
 Termination Event

 	
 25

 
	
  

 	
  

 	
  

 
	
 SECTION 7.5.

 	
 Accountings;
 Statements and Reports

 	
 28

 
	
  

 	
  

 	
  

 
	
 SECTION 7.6.

 	
 Records

 	
 30

 
	
  

 	
  

 	
  

 
	
 SECTION 7.7.

 	
 Fidelity
 Bond and Errors and Omissions Insurance

 	
 30

 
	
  

 	
  

 	
  

 
	
 SECTION 7.8.

 	
 Merger or
 Consolidation of the Servicer

 	
 31

 
	
  

 	
  

 	
  

 
	
 SECTION 7.9.

 	
 Sub-Servicing

 	
 31

 
	
  

 	
  

 	
  

 
	
 SECTION 7.10.

 	
 Servicer
 Resignation

 	
 31

 
	
  

 	
  

 	
  

 
	
 SECTION 7.11.

 	
 Fees and
 Expenses

 	
 32

 
	
  

 	
  

 	
  

 
	
 SECTION 7.12.

 	
 Access to
 Certain Documentation

 	
 32

 
	
  

 	
  

 	
  

 
	
 SECTION 7.13.

 	
 No Offset

 	
 33

 
	
  

 	
  

 	
  

 
	
 SECTION 7.14.

 	
 Account
 Statements

 	
 33

 
	
  

 	
  

 	
  

 
	
 SECTION 7.15.

 	
 Indemnification;
 Third Party Claim

 	
 33

 
	
  

 	
  

 	
  

 
	
 SECTION 7.16.

 	
 Backup
 Servicer

 	
 33

 
	
  

 	
  

 	
  

 
	
 SECTION 7.17.

 	
 Recordation

 	
 34

 
	
  

 	
  

 	
  

 
	
 ARTICLE
 VIII. PURCHASE TERMINATION EVENT; REMEDIES

 	
 34

 
	
  

 	
  

 	
  

 
	
 SECTION 8.1.

 	
 Purchase
 Termination Events

 	
 34

 
	
  

 	
  

 	
  

 
	
 SECTION 8.2.

 	
 Remedies

 	
 36

 
	
  

 	
  

 	
  

 
	
 SECTION 8.3.

 	
 Rights and
 Remedies Cumulative

 	
 36

 
	
  

 	
  

 	
  

 
	
 SECTION 8.4.

 	
 Delay or
 Omission Not Waiver

 	
 36

 
	
  

 	
  

 	
  

 
	
 SECTION 8.5.

 	
 Undertaking
 for Costs

 	
 37

 
	
  

 	
  

 	
  

 
	
 SECTION 8.6.

 	
 Waiver of
 Stay or Extension Laws

 	
 37

 
	
  

 	
  

 	
  

 
	
 SECTION 8.7.

 	
 Performance
 and Enforcement of Certain Obligations

 	
 37

 

iii

	
  

 	
  

 	
  

 
	
 ARTICLE IX.

 	
  

 	
 37

 
	
  

 	
  

 	
  

 
	
 INDEMNIFICATION

 	
 37

 
	
  

 	
  

 	
  

 
	
 SECTION 9.1.

 	
 Buyer
 Indemnified by Seller

 	
 37

 
	
  

 	
  

 	
  

 
	
 SECTION 9.2.

 	
 Seller Indemnified by Buyer

 	
 38

 
	
  

 	
  

 	
  

 
	
 ARTICLE X.
 COVENANTS OF THE SELLER/BUYER

 	
 39

 
	
  

 	
  

 	
  

 
	
 SECTION 10.1.

 	
 Existence;
 Merger; Consolidation, etc.

 	
 39

 
	
  

 	
  

 	
  

 
	
 SECTION 10.2.

 	
 Protection
 of Assets; Further Assurances

 	
 39

 
	
  

 	
  

 	
  

 
	
 SECTION 10.3.

 	
 Additional
 Covenants

 	
 41

 
	
  

 	
  

 	
  

 
	
 SECTION 10.4.

 	
 Notice of
 Purchase Termination Event/Servicer Termination Event

 	
 42

 
	
  

 	
  

 	
  

 
	
 SECTION 10.5.

 	
 Report on
 Proceedings

 	
 42

 
	
  

 	
  

 	
  

 
	
 SECTION 10.6.

 	
 Taxes

 	
 42

 
	
  

 	
  

 	
  

 
	
 SECTION 10.7.

 	
 Restricted
 Payments

 	
 42

 
	
  

 	
  

 	
  

 
	
 SECTION 10.8.

 	
 Further
 Instruments and Acts

 	
 43

 
	
  

 	
  

 	
  

 
	
 ARTICLE XI.

 	
  

 	
 43

 
	
  

 	
  

 	
  

 
	
 REACQUISITION
 OF SALE DATE LOAN POOLS

 	
 43

 
	
  

 	
  

 	
  

 
	
 SECTION 11.1.

 	
 Clean-up
 Call; Optional Reacquisition; Election to Reacquire

 	
 43

 
	
  

 	
  

 	
  

 
	
 SECTION 11.2.

 	
 Notice to
 Buyer

 	
 43

 
	
  

 	
  

 	
  

 
	
 SECTION 11.3.

 	
 Notice of
 Reacquisition by the Servicer

 	
 43

 
	
  

 	
  

 	
  

 
	
 SECTION 11.4.

 	
 Deposit of
 Reacquisition Price

 	
 43

 
	
  

 	
  

 	
  

 
	
 SECTION 11.5.

 	
 Timeshare
 Loans on Reacquisition Date

 	
 43

 
	
  

 	
  

 	
  

 
	
 ARTICLE XII.
 REPRESENTATIONS AND WARRANTIES

 	
 44

 
	
  

 	
  

 	
  

 
	
 SECTION 12.1.

 	
 Representations
 and Warranties of the Seller

 	
 44

 
	
  

 	
  

 	
  

 
	
 SECTION 12.2.

 	
  

 	
 50

 
	
  

 	
  

 	
  

 
	
 SECTION 12.3.

 	
  

 	
 50

 

iv

	
  

 	
  

 	
  

 
	
 SECTION 12.4.

 	
  

 	
 50

 
	
  

 	
  

 	
  

 
	
 SECTION 12.5.

 	
 Survival of
 Seller Representation and Warranties

 	
 51

 
	
  

 	
  

 	
  

 
	
 SECTION 12.6.

 	
 Knowledge
 Limitation

 	
 51

 
	
  

 	
  

 	
  

 
	
 SECTION 12.7.

 	
 Representations
 and Warranties of the Servicer

 	
 51

 
	
  

 	
  

 	
  

 
	
 SECTION 12.8.

 	
 Representations
 and Warranties of the Backup Servicer

 	
 54

 
	
  

 	
  

 	
  

 
	
 SECTION 12.9.

 	
 Representations
 and Warranties of the Buyer

 	
 57

 
	
  

 	
  

 	
  

 
	
 ARTICLE XIII.

 	
  

 	
 58

 
	
  

 	
  

 	
  

 
	
 CLUB TRUSTEE

 	
  

 	
 58

 
	
  

 	
  

 	
  

 
	
 SECTION 13.1.

 	
 Covenants of
 the Club Trustee

 	
 58

 
	
  

 	
  

 	
  

 
	
 ARTICLE XIV.
 MISCELLANEOUS

 	
 61

 
	
  

 	
  

 	
  

 
	
 SECTION 14.1.

 	
 Notices

 	
 61

 
	
  

 	
  

 	
  

 
	
 SECTION 14.2.

 	
 No
 Proceedings

 	
 63

 
	
  

 	
  

 	
  

 
	
 SECTION 14.3.

 	
 Entire
 Agreement; Term of Agreement; Binding Effect; Assignability

 	
 63

 
	
  

 	
  

 	
  

 
	
 SECTION 14.4

 	
 FEES,
 EXPENSES, PAYMENTS, ETC

 	
 64

 
	
  

 	
  

 	
  

 
	
 ARTICLE XV
 THE PAYING AGENT

 	
 64

 
	
  

 	
  

 	
  

 
	
 SECTION 15.1

 	
 Certain
 Duties

 	
 64

 
	
  

 	
  

 	
  

 
	
 SECTION 15.2

 	
 Certain
 Matters Affecting the Paying Agent

 	
 65

 
	
  

 	
  

 	
  

 
	
 SECTION 15.3

 	
 Paying Agent
 Not Liable for Timeshare Loans

 	
 66

 
	
  

 	
  

 	
  

 
	
 SECTION 15.4

 	
 Paying
 Agent’s Fees and Expenses

 	
 66

 
	
  

 	
  

 	
  

 
	
 SECTION 15.5

 	
 Resignation
 or Removal of Paying Agent

 	
 66

 
	
  

 	
  

 	
  

 
	
 SECTION 15.6

 	
 Successor
 Paying Agent

 	
 67

 
	
  

 	
  

 	
  

 
	
 SECTION 15.7

 	
 Merger or
 Consolidation of Paying Agent

 	
 68

 

v

	
  

 	
  

 
	
 Schedule I

 	
 Representations
 and Warranties Regarding the Timeshare Loans

 
	
  

 	
  

 
	
 Schedule II

 	
 Pending
 Litigation and Other Proceedings

 
	
  

 	
  

 
	
 Exhibit A

 	
 Collection
 Policy

 
	
  

 	
  

 
	
 Exhibit B

 	
 Lost Note
 Affidavit 

 
	
  

 	
  

 
	
 Exhibit C

 	
 Reserved

 
	
  

 	
  

 
	
 Exhibit D

 	
 Credit
 Policy

 
	
  

 	
  

 
	
 Exhibit E

 	
 Sale Notice

 
	
  

 	
  

 
	
 Exhibit F1

 	
 Buyer
 Commitment Purchase Confirmation

 
	
  

 	
  

 
	
 Exhibit F2

 	
 Buyer
 Purchase Confirmation

 
	
  

 	
  

 
	
 Exhibit G

 	
 Monthly
 Servicer Report

 
	
  

 	
  

 
	
 Exhibit H

 	
 Service
 Officer’s Certificate

 
	
  

 	
  

 
	
 Exhibit I

 	
 Record
 Layout for Data Tapes

 
	
  

 	
  

 
	
 Exhibit J

 	
 Reserved

 
	
  

 	
  

 
	
 Exhibit K

 	
 Local
 Counsel Opinions for Resorts’ Jurisdictions

 
	
  

 	
  

 
	
 Exhibit L

 	
 Waiver
 Letter

 
	
  

 	
  

 
	
 Exhibit M

 	
 Reserved

 
	
  

 	
  

 
	
 Exhibit N

 	
 Club Trust
 Agreement

 
	
  

 	
  

 
	
 Exhibit O

 	
 ACH Form

 
	
  

 	
  

 
	
 Exhibit P

 	
 Quorum
 Closed dates

 
	
  

 	
  

 
	
 Exhibit Q

 	
 Reserved

 
	
  

 	
  

 
	
 Exhibit R

 	
 Monthly
 Buyer Notice

 
	
  

 	
  

 
	
 Exhibit S

 	
 Commitment
 Purchase Period Terms Letter

 
	
  

 	
  

 
	
 Annex A

 	
 Standard
 Definitions

 

vi

LOAN SALE AND SERVICING AGREEMENT

                    This
LOAN SALE AND SERVICING AGREEMENT (this “Agreement”),
dated as of December 22, 2010 (the “Closing
Date”), is by and among BBCV RECEIVABLES-Q 2010 LLC, a Delaware
limited liability company, as seller (the “Seller”),
QUORUM FEDERAL CREDIT UNION, a federally chartered credit union, as buyer (the
“Buyer”), BLUEGREEN CORPORATION (“Bluegreen”), a Massachusetts corporation,
in its capacity as servicer (the “Servicer”),
VACATION TRUST, INC., a Florida corporation, as trustee under the Club Trust
Agreement (the “Club Trustee”),
CONCORD SERVICING CORPORATION, an Arizona corporation, as backup servicer (the
“Backup Servicer”), and U.S. BANK
NATIONAL ASSOCIATION, a national banking association, as custodian and paying
agent (the “Custodian” and the “Paying
Agent”).

RECITALS

                    WHEREAS,
from time to time during the Purchase Period, the Seller may sell and the Buyer
may purchase Timeshare Loans, in accordance with the terms and conditions of
this Agreement (each such transaction a “Sale”);

                    WHEREAS,
the Servicer shall service and administer the Timeshare Loans;

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

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

                    WHEREAS,
pursuant to the Custodial Agreement of even date herewith, the Custodian shall
serve as custodian of the Timeshare Loan Files, and 

                    WHEREAS,
pursuant to this Agreement, the Paying Agent has agreed to serve as the Paying
Agent for the Collection Account.

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

ARTICLE I.

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

          SECTION
1.1.     General Definitions and Usage of Terms.

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

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

          SECTION
1.2.     Effect of Headings and Table of Contents.

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

          SECTION
1.3.     Successors and Assigns.

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

          SECTION
1.4.     GOVERNING LAW.

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

          SECTION
1.5.     Legal Holidays.

                    Any
distribution or payment that is scheduled or proposed to be made on a day that
is not a Business Day shall be made on the next succeeding Business Day; provided,
that no penalty interest shall accrue for the period from and after such
distribution, or any other date on which payment is proposed to be paid, as the
case may be, until such next succeeding Business Day.

          SECTION
1.6.     Execution in Counterparts.

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

          SECTION
1.7.     Inspection.

                    (a)          After
the Closing Date and until the Agreement Termination Date, the Buyer shall have
the right to conduct periodic due diligence at the Seller’s sole cost and
expense (not to exceed five thousand dollars ($5,000.00) per occurrence) to
cover travel and administrative expenses for the Buyer) in accordance with the
parameters set forth below in Section 1.7(b) with regard to the Seller and/or
the Servicer upon reasonable notice to the applicable party and no more than
once per calendar year, unless a Purchase Termination Event or Servicer
Termination Event has occurred and is continuing. 

2

                    (b)          After
the Closing Date and until the Agreement Termination Date, the Seller agrees
that, on ten (10) Business Days prior notice (or, one (1) Business Day prior
notice after the occurrence and during the continuance of a Purchase
Termination Event or a Servicer Termination Event), it shall permit the Buyer
and its representatives, during the Seller’s normal business hours, to examine
all of the books of account, records, reports and other papers of the Seller
and/or the Servicer, to make copies thereof and extracts therefrom, and to
discuss its affairs, finances and accounts with its designated officers,
employees, all at such reasonable times (either annually or otherwise as
specified above in Section 1.7(a)) for the purpose of reviewing or evaluating
the financial condition or affairs of the Seller or the performance of and
compliance with the covenants and undertakings of the Seller and the Servicer
in this Agreement or any of the other documents referred to herein or therein.
Any reasonable expense incident to the exercise by the Buyer through third
party representatives up to twenty five thousand dollars ($25,000.00) during
any calendar year, of any right under this Section 1.7(b) shall be borne by the
Seller. Nothing contained herein shall be construed as a duty of the Buyer to
perform such inspection.

          SECTION
1.8.     Conveyance of Timeshare Loans. 

Subject to the terms and conditions of this Agreement, on each Sale
Date, in return for the Timeshare Loan Acquisition Price for each Sale Date
Loan Pool, the Seller does hereby sell, transfer, assign and grant to the
Buyer, without recourse (except as provided in Section 6.1 and Section 9.1
hereof), all of Seller’s right, title and interest in and to the following
whether now owned or hereafter acquired and any and all benefits accruing to
the Seller from, but excluding the Deferred Purchase Price and any related
proceeds, (i) the Timeshare Loans, listed from time to time on the Schedule of
Timeshare Loans (ii) any Qualified Substitute Timeshare Loans, listed from time
to time on the Schedule of Timeshare Loans, (iii) the Receivables in respect of
each such Timeshare Loan due after the related Cut-Off Date, (iv) the related
Timeshare Loan Documents (excluding any rights as developer or declarant under
the Timeshare Declaration, the Timeshare Program Consumer Documents or the
Timeshare Program Governing Documents), (v) all Related Security in respect of
each such Timeshare Loan, (vii) all rights and remedies under the Purchase
Agreement including, but not limited to, its rights with respect to the
representations and warranties of the Originator therein, together with all
rights of the Seller with respect to any breach thereof including any right to
require the Originator to cure, repurchase or substitute any Defective
Timeshare Loans in accordance with the provisions of the Purchase Agreement,
(vii) all amounts properly deposited in the Lockbox Account (after the
related Cut-Off Date) and the Collection Account and (viii) proceeds of the
foregoing (including, without limitation, all cash proceeds, accounts, accounts
receivable, notes, drafts, acceptances, chattel paper, checks, deposit
accounts, insurance proceeds (as applicable), condemnation awards, rights to
payment of any and every kind, and other forms of obligations and receivables
which at any time constitute all or part or are included in the proceeds of any
of the foregoing) (collectively, the “Assets”).
Upon any such sale and transfer, the ownership of each Timeshare Loan and all
collections allocable to principal and interest thereon after the related Cut-Off
Date and all other property interests or rights conveyed pursuant to and
referenced in this Section 1.8 shall immediately vest in the Buyer. The Seller
shall not take any action inconsistent with such ownership nor claim any
ownership interest in any Timeshare Loan for any purpose whatsoever other than
for federal and state income and franchise tax reporting and financial
reporting in accordance with GAAP. The parties to this Agreement hereby
acknowledge that the “credit risk” of the Timeshare Loans conveyed hereunder
shall be borne by the Buyer and its subsequent permitted assignees. The parties
to this Agreement (1) acknowledge that Buyer currently is exempt
from federal income tax and
consequently does not report the tax character of the transactions, (2)
acknowledge that Seller or its direct or indirect owners will report the
transaction as a financing (i.e., a borrowing by the Seller) for federal and
state income tax purposes, (3) agree that the parties intend this Agreement to
be a financing for federal and state income tax purposes and (4) agree that, unless otherwise required by law or the
Internal Revenue Service, they will treat the transactions as a
financing on any tax returns they now or in the future file or are required to
file, to the extent the characterization of the transactions as a sale or
financing is or becomes relevant for federal or state income tax purposes.

3

                    Notwithstanding
the foregoing, Buyer acknowledges that Seller is entitled to payment of the
Deferred Purchase Price as more particularly set forth in Section 4.3(a) below,
and in order to secure payment of the Deferred Purchase Price component of the
Timeshare Loan Acquisition Price to the Seller, hereby grants to the Seller a
continuing, first priority security interest in all of Buyer’s right, title and
interest in, to, under, and with respect to the Deferred Purchase Price, the
proceeds of or arising out of the Deferred Purchase Price (including, without
limitation, all cash proceeds, accounts, accounts receivable, notes, drafts,
acceptances, chattel paper, checks, deposit accounts, insurance proceeds (as
applicable), rights to payment of any and every kind, and other forms of
obligations and receivables which at any time constitute all or part or are included
in the proceeds of any of the foregoing) and the Deposit Accounts. In addition,
Buyer hereby authorizes the filing by the Seller of a related UCC financing
statement in the applicable UCC filing office(s). The Buyer agrees that, from
time to time, it shall promptly execute and deliver all further instruments and
documents, and take all further action, that may be necessary or appropriate,
or that the Seller may reasonably request, in order to perfect, protect or more
fully evidence the foregoing security interest of the Seller or to enable the
Seller to exercise or enforce any of its rights hereunder. Without limiting the
generality of the foregoing, the Servicer shall, without the necessity of a
request and upon the request of the Seller, execute and file or record (or
cause to be executed and filed or recorded) such financing or continuation
statements, or amendments thereto or assignments thereof, and such other
instruments or notices, as may be necessary or appropriate to create and
maintain in the Seller, a security interest that is first priority, at all
times, in the Deferred Purchase Price and the Deposit Accounts to secure the
payment of the Deferred Purchase Price, including, without limitation,
recording and filing UCC-1 financing statements, amendments or continuation
statements prior to the effective date of any change of the name, identity or
structure or relocation of its chief executive office or any change that would
or could affect the perfection pursuant to any financing statement or
continuation statement or assignment previously filed or make any UCC-1 or
continuation statement previously filed pursuant to this Agreement seriously
misleading within the meaning of applicable provisions of the UCC (and the
Buyer shall give the Seller at least thirty (30) Business Days prior notice of
the expected occurrence of any such circumstance).

4

          SECTION
1.9.     Closing Costs and Expenses. 

                    The
Seller shall pay any and all taxes, fees, premiums, or charges due to the
appropriate authorities as may be due in connection with the sale or transfer
of the Assets by the Seller to the Buyer on each Sale Date or Transfer Date.
The Seller, the Buyer and Bluegreen shall each be responsible for the payment
of their own expenses in connection with the negotiation and documentation of
this Agreement and the other Transaction Documents, including, without
limitation, legal and accounting fees. Each party further agrees to save the
other party harmless from and against any liabilities with respect to or
resulting from any delay in paying or any omission to pay the amounts for which
such party is obligated pursuant to this Section 1.9.

ARTICLE II.

SALE AND PURCHASE

          SECTION
2.1.     Process.

                    (a)
General Process. During the Purchase Period, and subject to the terms
and conditions of this Agreement, the Seller, if the Seller elects to pursue a
Sale, shall give the Buyer prior written notice in substantially the form of Exhibit
E hereto (a “Sale Notice”) not
later than 2:00 p.m. (New York City time) on the date which is no less than
three (3) Business Days prior to the date of a proposed Sale (each such sale
date, a “Sale Date”) or during the
Start-up Period five (5) Business Days prior to the date of a proposed Sale.
Such Sale Notice shall specify (i) the principal amount of the Timeshare Loans
and (ii) the proposed Sale Date, which must be a Business Day. The Buyer may
act without liability upon the basis of written notice believed by the Buyer in
good faith to be from the Seller (or from any Authorized Officer thereof
designated in writing by the Seller to the Buyer). The Buyer shall be entitled
to rely conclusively on any Authorized Officer’s authority to request a Sale on
behalf of the Seller until the Buyer receives written notice to the contrary.
The Buyer shall have no duty to verify the authenticity of the signature
appearing on any written Sale Notice.

                    (b)
Commitment Period. Commencing on the first (1st) day of the
third (3rd) month following the Closing Date until the end of the
Commitment Period (the “Commitment Purchase Period”), the Buyer
shall be obligated to purchase Eligible Timeshare Loans from the Seller such
that the Buyer’s Net Investment Amount equals the Minimum Required Amount
subject only to (i) the Seller offering through a Sale Notice to the Buyer
Eligible Timeshare Loans with Loan Balances equal to at least the Minimum
Required Amount and (ii) there being no occurrence and continuance of a
Purchase Termination Event. Upon the receipt of a Sale Notice from the Seller
during the Commitment Purchase Period, the Buyer shall confirm, by issuing a
commitment purchase confirmation with such terms as are contained in the form
of Exhibit F1 attached hereto and incorporated herein by this reference
(a “Buyer Commitment Purchase Confirmation”)
no later than 12:00 p.m. (New York City time) on the Business Day prior to the
proposed Sale Date that Buyer shall fund in accordance with the Sale Notice.
The Buyer shall deposit the Initial Purchase Price Installment in immediately
available funds, no later than 12:00 p.m. (New York City time) on the related
Sale Date, to the account designated by the Seller in the Sale Notice.
Notwithstanding the foregoing, the Seller and Buyer hereby covenant and agree
that all of the terms of the Buyer Commitment Purchase Confirmation shall be
established during the Commitment Purchase Period on or prior to the Closing
Date and evidenced in a fully executed commitment purchase period terms letter
in the form attached hereto in Exhibit S (the “Commitment Purchase Period Terms Letter”)
delivered by Buyer to Seller on the Closing Date. 

5

                    (c)
After the Commitment Period. Commencing on the first day of the last
calendar month during the Commitment Purchase Period and continuing on the
first day of each calendar month thereafter during the Purchase Period, the
Buyer shall deliver to the Seller a written notice in substantially the form in
Exhibit R attached hereto (the “Monthly Buyer Notice”) containing the terms
satisfactory to Buyer for Sale Date Loan Pools to be purchased by the Buyer
during the calendar month immediately following the month during which such
Monthly Buyer Notice was given to the Seller. If the Seller delivers a Sale Notice
to the Buyer based on the terms of the Monthly Buyer Notice and if the Buyer
intends to enter into such Sale with the Seller upon such terms, then the Buyer
shall confirm, by issuing a purchase confirmation in substantially the form in Exhibit
F2 attached hereto (a “Buyer Purchase
Confirmation”) no later than 12:00 p.m. (New York City time) on the
Business Day prior to the proposed Sale Date that Buyer shall fund in
accordance with the Sale Notice. The Buyer Purchase Confirmation shall specify
items including the following (w) the Buyer Purchase Price Percentage, (x) the
Initial Purchase Price Installment for such Sale Date Loan Pool, (y) the
Program Fee Rate, and (z) any fees and expenses payable by the Seller to the
Buyer. If the Seller decides to reject any Buyer Purchase Confirmation, it must
provide notice to the Buyer no later than 3:00 p.m. (New York City time) on the
Business Day prior to the proposed Sale Date. The Buyer shall deposit the
Initial Purchase Price Installment in immediately available funds, no later
than 12:00 p.m. (New York City time) on the related Sale Date, to the account
designated by the Seller in the Sale Notice.

          SECTION
2.2.     Initial Program Fee Rate and Maximum
Program Fee Rate. 

                    The
Buyer shall specify the initial Program Fee Rate applicable to the first Sale
Date as well as Maximum Program Fee Rate in a fee letter delivered to the
Seller on the Closing Date. The Buyer shall provide notice of a change of the
Maximum Program Fee Rate no less than three months prior to the end of the
Maximum Program Fee Rate Period.

          SECTION
2.3.     Combining Sale Date Loan Pools. 

                    On
each Sale Date, the Timeshare Loans acquired by the Buyer shall comprise the
Sale Date Loan Pool for such Sale Date. All Sale Date Loan Pools shall be
combined to form the Aggregate Sale Date Loan Pool. 

          SECTION
2.4.     Notice of NCUA Interest Rate Change.

                    Quorum
shall notify Seller and Servicer in writing within five (5) days of becoming
aware of any proposed changes to the usury rate laws, maximum interest rates or
annual percentage rates or similar terms or limitations as may pertain to the
Assets (including the Timeshare Loans) by the National Credit Union Association
(“NCUA”). Buyer represents and warrants to Seller that any Assets, including,
for example, Timeshare Loans, purchased by Buyer pursuant to this Agreement
prior to any such changes shall not be affected thereby. 

6

ARTICLE III.

CLOSING CONDITIONS

          SECTION
3.1.     Conditions to be Satisfied for Buyer by
Closing Date. 

                    The
obligations of the Buyer to close on the Transaction Documents shall be subject
to the satisfaction on or before the Closing Date of the conditions described below:

                    (a)          The
accuracy of the representations and warranties on the part of the Seller, the
accuracy of the statements of officers of the Seller made pursuant to the
provisions hereof, the performance by the Seller of its obligations hereunder;

                    (b)          The
Transaction Documents shall have been duly authorized, executed and delivered
by the respective parties thereto and shall be in full force and effect, and
all conditions precedent contained in the Transaction Documents shall have been
satisfied or waived;

                    (c)          The
Buyer shall have received from counsel to each party to the Transaction
Documents, written opinions dated the Closing Date and in form and substance
satisfactory to the Buyer, covering such matters as the Buyer may reasonably
request, including but not limited substantially to the following:

	
  

 	
  

 
	
  

 	
 (i)       Corporate Opinions. An
 opinion in respect of each party to the Transaction Documents that such party
 has been duly formed, is existing and in good standing under the laws of its
 state of formation, with all requisite power and authority to own its
 properties and conduct its business.

 
	
  

 	
  

 
	
  

 	
 (ii)      Legal, Valid, Binding and
 Enforceable. An opinion in respect of each party to the Transaction
 Documents that each Transaction Document to which it is a party has been duly
 authorized, executed and delivered and constitutes the valid and legally
 binding obligations of each party enforceable in accordance with its terms,
 subject to bankruptcy, insolvency, fraudulent transfer, reorganization,
 moratorium and similar laws of general applicability relating to or affecting
 creditors’ rights and to general equity principles.

 
	
  

 	
  

 
	
  

 	
 (iii)     No Consents Required. An
 opinion in respect of each party to the Transaction Documents that in respect
 of such party, no consent, approval, authorization or order of, or filing
 with, any governmental agency or body or any court is required for the
 consummation of the transactions contemplated by the Transaction Documents.

 

7

	
  

 	
  

 
	
  

 	
 (iv)      Non-Contravention. An
 opinion in respect of each party to the Transaction Documents that in respect
 of such party the execution, delivery and performance of the Transaction
 Documents to which it is a party shall not result in a breach or violation of
 any of the terms and provisions of, or constitute a default under (A) the
 organizational documents of such party, (B) any statute, rule, regulation or
 order of any governmental agency or body or any court having jurisdiction
 over such party or any subsidiary of such party or any of their properties,
 or, (C) to the Knowledge of the opining party, any agreement or instrument to
 which such party is a party or by which such party is bound or to which any
 of the properties of such party is subject, or the organizational documents
 of such party, the result of which, in each of the foregoing cases, would
 have a material adverse effect on such party and its subsidiaries, taken as a
 whole.

 
	
  

 	
  

 
	
  

 	
 (v)       True Sale. A true sale opinion
 regarding the sale of the Timeshare Loans and other assets sold by the
 applicable Originator to the Seller pursuant to the Purchase Agreement.

 
	
  

 	
  

 
	
  

 	
 (vi)      Non-Consolidation. A
 substantive consolidation opinion to the effect that in the event that the
 applicable Originator were to become a debtor in a case under the Bankruptcy
 Code, a court of competent jurisdiction would not require consolidation of
 the Seller in the applicable Originator’s bankruptcy estate.

 
	
  

 	
  

 
	
  

 	
 (vii)     Security Interests. An opinion
 or a certificate from a Governmental Authority satisfactory to the Buyer to
 the effect that no financing statements have been filed in the applicable UCC
 filing office against the Seller encumbering the Timeshare Loans. 

 
	
  

 	
  

 
	
  

 	
 (viii)    No Action. An Officer’s
 Certificate or its equivalent stating that no action, suit, proceeding or
 investigation by or before any Governmental Authority shall have been
 instituted to restrain or prohibit the consummation by the Buyer or the
 Seller of, or to invalidate, the transactions contemplated by, this Agreement
 or the Transaction Documents in any material respect.

 

                    (d)          The
Buyer shall have received from each party to the Transaction Documents such
information, certificates and documents as the Buyer may reasonably have
requested and all proceedings in connection with the transactions contemplated
by this Agreement and all documents incident hereto shall be in all material
respects reasonably satisfactory in form and substance to the Buyer.

8

                    (e)          The
Buyer shall have received copies of the Organizational Documents of all parties
to the Transaction Documents, certified by the Secretary of State of its
jurisdiction of organization or, if such document is of a type that may not be
so certified, certified by the secretary or similar officer or manager,
together with a good standing certificate from the Secretary of State of its
jurisdiction of organization and each other jurisdiction in the United States
in which such parties are qualified to do business, if applicable, each dated a
recent date prior to the Closing Date;

                    (f)          Resolutions
of all parties to the Transaction Documents approving and authorizing the
execution, delivery and performance of the Transaction Documents to which it is
a party, certified as of the Closing Date by the secretary or similar officer
or manager of such parties as being in full force and effect without
modification or amendment; and

                    (g)          Signature
and incumbency certificates of the officers or managers of all parties
executing the Transaction Documents.

          SECTION
3.2.     Conditions to be Satisfied for Seller by Closing Date. 

                    The
obligations of the Seller to close on the Transaction Documents shall be
subject to the satisfaction on or before the Closing Date of the conditions
described below:

                    (a)          The
accuracy of the representations and warranties on the part of the Buyer, the
accuracy of the statements of officers of the Buyer made pursuant to the
provisions hereof, the performance by the Buyer of its obligations hereunder;

                    (b)          
The Seller shall have received: 

	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 Certified copies of the resolutions of the Buyer approving the
 lending policy which authorizes this Agreement and the Transaction Documents
 to which it is a party and any other documents contemplated thereby and
 certified copies of all documents evidencing other necessary credit union
 action, with respect to this Agreement and the Transaction Documents to which
 it is a party and any other documents contemplated thereby;

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 An officer’s certificate of the Buyer, certifying the names and true
 signatures of the officers authorized to sign this Agreement and the
 Transaction Documents and any other documents to be delivered by it hereunder
 or thereunder;

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 A copy of the organizational documents of the Buyer, certified by an
 officer or the equivalent thereof; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (iv)

 	
 An opinion of counsel to the Buyer as to corporate and other matters,
 dated the Closing Date, in form and substance reasonably satisfactory to the
 Seller and its counsel; 

 

9

	
  

 	
  

 	
  

 
	
  

 	
 (v)

 	
 Executed copies of each of the Transaction Documents; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (vi)

 	
 A filed copy of a UCC-1 in satisfactory form to the Seller and the
 Buyer covering the Deferred Purchase Price and the Deposit Accounts; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (vii)

 	
 A completed, fully executed Commitment Purchase Period Terms Letter
 specifying all applicable terms during the Commitment Purchase Period as
 shall be satisfactory to Buyer in its sole discretion.

 

                    (c)          This
Agreement and the other Transaction Documents shall have become effective in
accordance with their respective terms.

                    (d)          An
Officer Certificate stating that no action, suit, proceeding or investigation
by or before any Governmental Authority shall have been instituted to restrain
or prohibit the consummation by the Buyer or the Seller of, or to invalidate,
the transactions contemplated by, this Agreement or the Transaction Documents
in any material respect.

ARTICLE IV.

ACCOUNTS; COLLECTION AND

APPLICATION OF MONEYS; REPORTS

          SECTION
4.1.      Trust Accounts.

                    (a)          On
or before the Closing Date, Trust Accounts shall be established for the benefit
of the Buyer, which accounts (other than the Lockbox Account) shall be Eligible
Bank Accounts maintained with the Paying Agent. 

                    Subject
to the further provisions of this Section 4.1(a), the Buyer shall, upon receipt
or upon transfer from another account, as the case may be, deposit into such
Trust Accounts all amounts received by it which are required to be deposited
therein in accordance with the provisions of this Agreement. 

                    The
Buyer shall assume that any amount remitted to it in respect of the Assets is
to be deposited into the Lockbox Account unless a Responsible Officer of the
Buyer receives written instructions from the Servicer to the contrary.

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

                    (c)          All
amounts in the Collection Account shall remain uninvested. 

10

          SECTION
4.2.     Establishment and Administration of the
Collection Account.

                    (a)          Collection
Account. The Buyer hereby agrees to cause to be established and maintained
a collection account (the “Collection Account”).
The Collection Account shall be an Eligible Bank Account established with the
Paying Agent, titled “Quorum Federal Credit Union/BBCV-Q 2010 LLC Collection
Account” and which shall be covered by a control agreement acceptable to, and
by and among, the Seller, the Buyer and the Paying Agent. Seller and Buyer
agree and acknowledge that Seller shall have “control” (within the meaning of
the UCC) of the Collection Account in order to perfect the security interest
granted by Buyer to Seller in Section 1.8 above. Seller covenants and agrees
with Buyer not to give the notice referenced in Section 3(b) of the Deposit
Account Control Agreement related to the Paying Agent unless there has been the
occurrence of a Buyer Trigger Event. Seller shall give Buyer immediate written
notice of any notice given in accordance with Section 3(b) of the Deposit
Account Control Agreement relating to the Collection Account. Buyer covenants
and agrees to give immediate written notice to Seller and Servicer upon the
occurrence of any such Buyer Trigger Event.

          The Seller
agrees to immediately deposit any amounts received by it after the applicable Cut-Off
Date relating to the Assets in a respective Sale Date Loan Pool into the
Lockbox Account. Withdrawals and payments from the Collection Account shall be
made on each Distribution Date as provided in Section 4.3 hereof. The Paying
Agent, at the instruction of the Servicer, shall withdraw or cause to be
withdrawn (no more than once per calendar week) from the Collection Account and
return to the Servicer or as directed by the Servicer, any amounts which were
mistakenly deposited in the Collection Account, including, without limitation,
amounts representing (i) Misdirected Payments or (ii) Additional Servicing
Compensation. 

                    (b)          Lockbox
Account. The Buyer hereby agrees to cause to be established and maintained
the Lockbox Account. The Lockbox Account shall be an Eligible Bank Account
established with the Lockbox Bank, titled “Quorum Federal Credit Union” and
which shall be covered by a deposit account control agreement acceptable to,
and by and among, the Seller, the Buyer and the Lockbox Bank. Servicer shall
promptly pay, and hold Buyer harmless from, any fees assessed by the Lockbox
Bank pursuant to Section 5 of the Deposit Account Control Agreement relating to
the Lockbox Account, unless such amounts are paid or are payable to the Lockbox
Bank pursuant to Section 4.3(a) of this Agreement. Buyer shall provide prompt
written notice to Seller upon Buyer’s receipt of written notice from the Lockbox
Bank of any change in Lockbox Bank’s charges pursuant to Section 12(a) of the
Deposit Account Control Agreement related to the Lockbox Bank. In addition,
Buyer covenants and agrees with Seller that Buyer shall not change, or permit
to be changed, any processing instructions under the Deposit Account Control
Agreement related to the Lockbox Bank without the prior written consent of the
Seller or the initial Servicer. Seller and Buyer agree and acknowledge that
Seller shall have “control” (within the meaning of the UCC) of the Lockbox
Account in order to perfect the security interest granted by Buyer to Seller in
Section 1.8 above. Seller covenants and agrees with Buyer not to give any
notice or instruction referenced in Section 1(a) of the Deposit Account Control
Agreement related to the Lockbox Bank unless there has been the occurrence of a
Buyer Trigger Event. Seller shall give Buyer immediate written notice of any
notice given in accordance with Section 1(a) of the Deposit Account Control
Agreement relating to the Lockbox Account. Buyer covenants and agrees to give
immediate written notice to Seller and Servicer upon the occurrence of any such
Buyer Trigger Event.

11

          SECTION
4.3.     Distributions.

                    (a)          The
Servicer shall provide to the Paying Agent the Monthly Servicer Report not less
than one Business Day prior to each Distribution Date. On each Distribution
Date, to the extent of Available Funds on deposit in the Collection Account
relating to all Timeshare Loans purchased by the Buyer and based on the Monthly
Servicer Report, the Servicer (with the written approval of the Buyer which
shall be given to the Servicer within one (1) Business Day of the Buyer’s
receipt of the Monthly Servicer Report and which written approval shall be
deemed given if the Buyer fails to so timely provide it) shall direct the
Paying Agent to make the following disbursements and distributions to the
following parties, in the following order of priority: 

	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 to the
 Custodian, the Custodian Fee, plus any accrued and unpaid Custodian Fees with
 respect to prior Distribution Dates, and to the Paying Agent, the Paying
 Agent Fee, plus any accrued and unpaid Paying Agent Fees with respect to
 prior Distribution Dates; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 to the
 Backup Servicer, the Backup Servicing Fee, plus any accrued and unpaid Backup
 Servicing Fees with respect to prior Distribution Dates; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 to the
 Lockbox Bank, the Lockbox Fee, plus any accrued and unpaid Lockbox Fees with
 respect to prior Distribution Dates; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (iv)

 	
 to the
 Servicer, the Servicing Fee, plus any accrued and unpaid Servicing Fees with
 respect to prior Distribution Dates; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (v)

 	
 to the
 Buyer, the aggregate of all accrued and unpaid Program Fee Amounts for all
 Sale Date Loan Pools sold by the Seller to the Buyer; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (vi)

 	
 to the
 Buyer, the aggregate of all accrued and unpaid Buyer Target Loan Pool
 Repayment Amounts for all Sale Date Loan Pools sold by the Seller to the
 Buyer; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (vii)

 	
 whenever a
 Timeshare Portfolio Performance Event has occurred and is continuing or upon
 the occurrence of the Turbo Trigger Date, to the Buyer, all remaining
 Available Funds (except late fees and property owners association fees),
 until the aggregate of all Net Investment Amounts for all Sale Date Loan
 Pools sold by the Seller to the Buyer have been reduced to zero; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (viii)

 	
 to the
 Custodian, Paying Agent, Backup Servicer, Lockbox Bank and the Servicer, any
 expenses not paid pursuant to clauses (i) through (iv) above, as applicable;

 

12

	
  

 	
  

 	
  

 
	
  

 	
 (ix)

 	
 on the
 Facility Termination Date, to the Buyer, any remaining Available Funds
 (except late fees and property owners association fees) until all amounts due
 on the Facility Termination Date are paid in full; and 

 
	
  

 	
  

 	
  

 
	
  

 	
 (x)

 	
 to the
 Seller, any remaining amounts, which amounts represent the Deferred Purchase
 Price payments to the Seller. 

 

                    (b)          Assignment
of Timeshare Loans To The Seller. So long as no Timeshare Portfolio
Performance Event is continuing, on any Distribution Date upon which the
Buyer’s Net Investment Amount is less than or equal to the Target Net
Investment Amount after all payments have been made under Section 4.3(a)(vi) on
any Distribution Date, the Buyer shall assign all Defaulted Timeshare Loans
that it owns to the Seller without additional consideration. Upon the
occurrence of the Agreement Termination Date (and so long as all Net Investment
Amounts for all Sale Date Loan Pools sold by the Seller to the Buyer have been
reduced to zero), the Buyer shall concurrently therewith for no additional
consideration, assign all Timeshare Loans that it owns to the Seller or its
designee and take all reasonably necessary steps and actions as may be
requested by the Seller or the Servicer to transfer the related Assets to the
Seller or its designee, inclusive of the vesting of title in and to such Assets
to such Person. With respect to any assignment of Timeshare Loans by the Buyer
to the Seller or its designee required hereunder, the Servicer shall prepare
such assignment (which shall be without recourse, representation or warranty of
the Buyer) for execution and delivery by the Buyer and by copy of such
assignment to the Custodian, notify the Custodian of such assignment. In
addition, the Servicer shall deliver a Request for Release to the Custodian
with respect to the related Timeshare Loan Files being released pursuant to
this Section 4.3(b), and such files shall be transferred to the Seller or its
designee. 

          SECTION
4.4.     Reports to Buyer.

                    (a)          On each Distribution Date, the Servicer shall account to the Buyer the portion
of payments then being made which represents principal and the amount which
represents the Program Fee Amount, and shall contemporaneously advise the
Seller of all such payments. The Servicer may satisfy its obligations under
this Section 4.4 by making available electronically the Monthly Servicer Report
to the Buyer and the Seller.     (b)          Subject
to the prior written approval of the Buyer which shall not be unreasonably
withheld, the Servicer shall have the right to change the way Monthly Servicer
Reports are distributed in order to make such distribution more convenient
and/or more accessible to the above parties and the Servicer shall provide
timely and adequate notification to all above parties regarding any such
changes. 

                    (c)          Reserved.

                    (d)          Other
than as provided in Section 4.4(d) below, the Seller shall cause to be
furnished to the Buyer, no later than forty five (45) days
after the end of each fiscal quarter of the Servicer, unaudited and internally
prepared consolidated balance sheets and related statements of income, and cash
flows for the initial Servicer as of and for each fiscal quarter from the
Closing Date through the Agreement Termination Date, in each case certified by
the chief financial officer of the initial Servicer. 

13

                    (e)          The
Seller shall cause to be furnished to the Buyer, no later than ninety (90) days
after the end of each fiscal year of the initial Servicer, audited consolidated
balance sheets and related statements of income, stockholder’s equity and cash
flows for the initial Servicer as of and for each fiscal year from the Closing
Date through the Agreement Termination Date. 

                    (f)          
Notwithstanding the foregoing in Sections 4.4(c) and 4.4(d) above, to the
extent that any of the items required by such provisions to be furnished by the
Seller to the Buyer are filed by the Servicer with, and within required time
periods required by, the United States Securities and Exchange Commission, then
the Seller’s obligations set forth in Sections 4.4(c) and 4.4(d) above shall be
deemed satisfied. 

                    (g)          The
Seller shall furnish, or cause to be furnished to the Buyer, no later than one
hundred twenty (120) days after the end of each fiscal year of the Club
Association, audited financial statements for the Club Association for each
fiscal year from the Closing Date through the Agreement Termination Date. The
Seller shall furnish to the Buyer, promptly upon its receipt, the report, if
any, prepared by the independent accounting firm set forth in Section 8.01(k) of
the Club Trust Agreement, until the Agreement Termination Date. 

ARTICLE V.

ACQUISITION OF TIMESHARE LOANS

          SECTION
5.1.     Delivery of Timeshare Loan Files and
Timeshare Loan Servicing Files. 

                    With
respect to each Sale Date and in accordance with the Custodial Agreement, the
Seller shall deliver or cause to be delivered (i) to the Custodian, the
Timeshare Loan Files and (ii) to the Servicer, the Timeshare Loan Servicing
Files for each Timeshare Loan or Qualified Substitute Timeshare Loan to be
conveyed on such Sale Date or Transfer Date. 

          SECTION
5.2.     Conditions Precedent.

                    Prior
to the acceptance by the Buyer of any Timeshare Loan or the release of any
funds therefor, the following conditions must be satisfied on or prior to the
related Sale Date (or on or prior to the first Sale Date with respect to
Section 5.2(k) below): 

                    (a)          all
representations and warranties of the Seller contained herein and all
information provided in the Schedule of Timeshare Loans shall be true and
correct as of a Sale Date, and the Seller shall have delivered to the Buyer an
Officer’s Certificate to such effect; 

                    (b)          all
representations and warranties of the Seller in respect of the Timeshare Loans
shall be true and correct; 

                    (c)          immediately
prior to the sale of any Timeshare Loan to the Buyer, the Seller shall have
full legal and equitable title to such Timeshare Loan, free and clear of any
Liens, other than Permitted Liens; 

14

                    (d)               
the Seller shall have delivered or shall have caused the delivery of (A) the
related Timeshare Loan Files to the Custodian and the Custodian shall have
delivered a Custodian’s Certificate therefor pursuant to the Custodial
Agreement, (B) the Timeshare Loan Servicing Files to the Servicer and (C) the
related Schedule of Timeshare Loans to the Custodian, the Servicer, and the
Buyer (notwithstanding anything in this Section 5.2(d) to the contrary, the
delivery period set forth in the Custodial Agreement shall govern); 

                    (e)          the Seller shall have caused to be delivered to the Buyer an Officer’s
Certificate to the effect that (A) the representations and warranties in each
of the Transaction Documents made by the Seller are true and correct in all
respects on and as of the Sale Date as though made on and as of that date (or,
to the extent such representations and warranties specifically relate to an
earlier date, that such representations and warranties were true and correct in
all respects on and as of such earlier date), (B) the Seller shall have
performed in all respects all agreements and satisfied all conditions which
this Agreement provides shall be performed or satisfied by them on or before
the Sale Date and (C) no Timeshare Portfolio Performance Event, Servicer
Termination Event or Purchase Termination Event (i) shall have occurred and be
continuing, or, (ii) in the case of any of the foregoing, as applicable, is reasonably
expected to be reflected in the next succeeding Monthly Servicer Report, both
before and after giving effect to the transactions contemplated to occur on or
about the Sale Date; 

                    (f)          each
transfer, assignment, sale and grant shall be evidenced by an Assignment of
Mortgage. The Seller shall have delivered or caused to be delivered all other
information theretofore required or reasonably requested by the Buyer to be
delivered by the Seller or performed or caused to be performed all other
obligations required to be performed, including all filings, recordings and/or
registrations as may be necessary in the opinion of the Buyer to establish and
preserve the right, title and interest of the Buyer in the related Timeshare
Loans; 

                    (g)          each
Timeshare Loan shall be an Eligible Timeshare Loan; 

                    (h)          each
Transaction Document shall be in full force and effect. All of the terms,
covenants, agreements and conditions of each Transaction Document to be
complied with and performed by each party thereto, as the case may be, by the
Sale Date, shall have been complied with in all material respects or otherwise
waived by the Buyer; 

	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 such other documents, instruments, certificates and opinions as the
 Buyer

 
	
  

 	
  

 	
  

 
	
  

 	
 (j)

 	
 may reasonably request as set forth on the closing checklist are
 delivered; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (k)

 	
 the Buyer shall have received a Sale Notice pursuant to Exhibit E hereof;  

 

15

                    (l)          the
Buyer shall have received from local counsel, written opinions dated not later
than the first Sale Date and in form and substance reasonably satisfactory to
the Buyer, covering each Resort in the jurisdictions identified on Exhibit K to
the effect that (A) the manner of offering for sale of and the sale of
timeshare estates in such Resorts complies with the requirements of the
applicable governmental authorities in such jurisdiction, (B) the form of
purchase contract, obligor notes, mortgages (if applicable) are sufficient to
create a valid and binding obligation of the purchaser, enforceable against
such purchaser in accordance with its terms, (C) the timeshare loans are
assignable by the holder thereof, (D) the form of Assignment of Mortgage, to
the extent applicable, are in proper form for recording in such jurisdiction,
and (E) the highest rate of interest that can be charged without violating
usury laws; 

                    (m)          no
Timeshare Loan shall be subject to an annual percentage rate of interest (APR)
reflected in the related truth-in-lending disclosure statement or similar
disclosure form greater than the maximum prescribed by the National Credit
Union Association, which Buyer represents is, as of the Closing Date, eighteen
percent (18%); and 

                    (n)          the
weighted average FICO Score on all Timeshare Loans with a FICO Score in the
applicable Sale Date Loan Pool must not be less than 700 for all Timeshare
Loans originated thirty (30) or fewer days prior to the related Sale Date and
675 for all Timeshare Loans originated more than thirty (30) days prior to the
related Sale Date, and each Timeshare Loan, when aggregated with all other
outstanding Timeshare Loans previously sold to the Buyer shall not cause the
weighted average FICO Score of all of the related Timeshare Loans to be less
than 675; provided, however, that (i) non-United States resident Obligors do
not require a FICO Score, and (ii) the sum of the Timeshare Loans that are (a)
Timeshare Loans from United States resident Obligors without a FICO Score and
(b) Timeshare Loans with a FICO Score equal to or greater than 575 and less
than or equal to 599, shall not exceed two and one half percent (2.5%) when the
quotient of (x) the sum of the Sale Date Loan Balances of the Timeshare Loans
in the applicable Sale Date Loan Pool and the Loan Balances (as of the end of
the last Due Period) of the Timeshare Loans in the Aggregate Sale Date Loan
Pool that meet the criteria set forth in the foregoing clauses (ii)(a) and
(ii)(b), divided by (y) the sum of the Sale Date Loan Balances of all Timeshare
Loans in the applicable Sale Date Loan Pool and the Loan Balances (as of the
end of the last Due Period) of all Timeshare Loans in the Aggregate Sale Date
Loan Pool, is expressed as a percentage.  

          SECTION
5.3.     Conveyance of Timeshare Loans. 

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

                    (b)          None
of the Seller, the Servicer, the Club Trustee or the Backup Servicer shall take
any action inconsistent with the Buyer’s interest in the Timeshare Loans and,
other than in respect of federal and state income tax reporting, as described
in Section 1.8 of this Agreement, and financial reporting in accordance with
GAAP, as applicable, shall indicate or shall cause to be indicated in its books
and records held on its behalf that the Timeshare Loans constituting the Assets
have been sold to the Buyer. 

16

          SECTION
5.4.     Further Action Evidencing Sale.

                    (a)          It
is the intention of the parties hereto that each transfer of the Timeshare
Loans and related Assets to be made pursuant to the terms hereof shall
constitute a sale by the Seller to the Buyer and not a loan secured by the
Timeshare Loans and related Assets. 

                    (b)          The
Seller agrees that, from time to time, it shall promptly execute and deliver
all further instruments and documents, and take all further action, that may be
necessary or appropriate, or that the Buyer may reasonably request, in order to
perfect, protect or more fully evidence the sale of the Timeshare Loans or to
enable the Buyer to exercise or enforce any of its rights hereunder. Without
limiting the generality of the foregoing, the Seller shall, without the
necessity of a request and upon the request of the Buyer, execute and file or
record (or cause to be executed and filed or recorded) such Assignments of
Mortgage, financing or continuation statements, or amendments thereto or
assignments thereof, and such other instruments or notices, as may be necessary
or appropriate to create and maintain in the Buyer, a perfected “back-up”
security interest that is first priority, at all times, in the Assets,
including, without limitation, recording and filing UCC-1 financing statements,
amendments or continuation statements prior to the effective date of any change
of the name, identity or structure or relocation of its chief executive office
or any change that would or could affect the perfection pursuant to any
financing statement or continuation statement or assignment previously filed or
make any UCC-1 or continuation statement previously filed pursuant to this
Agreement seriously misleading within the meaning of applicable provisions of
the UCC (and the Seller shall give the Buyer at least thirty (30) Business Days
prior notice of the expected occurrence of any such circumstance). 

                    The
Seller hereby grants to each of the Servicer and the Buyer a power of attorney
to execute, file and record all documents including, but not limited to,
Assignments of Mortgage, UCC-1 financing statements, amendments or continuation
statements, on behalf of the Seller as may be necessary or desirable to,
subject to the terms of this Agreement, effectuate the foregoing. The Servicer
hereby grants to the Buyer a power of attorney to execute, file and record all
documents on behalf of the Servicer as may be necessary or desirable to,
subject to the terms of this Agreement, effectuate the foregoing. 

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

                    Seller
hereby agrees to make the appropriate entries in its applicable records to
indicate that the Timeshare Loans have been sold to the Buyer under this
Agreement upon the conveyance of such Timeshare Loans to the Buyer pursuant to
the terms hereof. 

17

ARTICLE VI.

SUBSTITUTIONS AND REPURCHASES

SECTION
6.1.     Mandatory
Substitution and Repurchase of Timeshare Loans. 

                    If
at any time, any party hereto obtains knowledge, discovers, or is notified by
any other party hereto, that any of the representations and warranties of the
Seller in Article XII of this Agreement were incorrect at the time such
representations and warranties were made, then the party discovering such
defect, omission, or circumstance shall promptly notify the other parties to
this Agreement. In the event any such representation or warranty of the Seller
in Article XII of this Agreement is incorrect and materially and adversely
affects the value of a Timeshare Loan or the interests of the Buyer therein,
then the Seller shall, within sixty (60) days after the date it is first
notified of, or otherwise obtains Knowledge of such breach, eliminate or
otherwise cure, or cause to be eliminated or otherwise cured, in all material
respects the circumstance or condition which has caused such representation or
warranty to be incorrect or if the breach relates to a particular Timeshare
Loan and is not cured in all material respects (such Timeshare Loan, a “Defective Timeshare Loan”) either, at
Seller’s option, (a) repurchase such Defective Timeshare Loan at the Repurchase
Price, or (b) provide one or more Qualified Substitute Timeshare Loans to the
Buyer and pay the Substitution Shortfall Amounts to the Buyer, if any. 

          SECTION
6.2.     Optional Purchase or Substitution of Club
Loans in connection with Upgrades. 

                    Pursuant
to the Purchase Agreement, with respect to any Original Club Loan, on any date,
the applicable Originator, as designee of the Seller, will (at its option), if
the related Obligor has elected to effect and the applicable Originator has
agreed to effect an Upgrade, (i) pay to the Collection Account the Repurchase
Price for such Original Club Loan or (ii) substitute one or more Qualified
Substitute Timeshare Loans for such Original Club Loan and pay the related
Substitution Shortfall Amounts, if any; provided,  however, that
the option to substitute one or more Qualified Substitute Timeshare Loans for
an Original Club Loan is limited on any date to (A) twenty percent (20%) of the
Cut-off Date Loan Balances of the Aggregate Sale Date Loan Pool, less (B) the
aggregate Loan Balances of Original Club Loans previously substituted by the
applicable Originator pursuant to this Section 6.2 on prior Transfer Dates. The
applicable Originator, as designee of the Seller, shall deposit the related
Repurchase Price and Substitution Shortfall Amounts, if any, in the Collection
Account as set forth in Section 6.4 hereof. The Buyer acknowledges that the
applicable Originator has agreed to use best efforts to exercise its
substitution option with respect to Original Club Loans prior to exercise of
its repurchase option, and to the extent that it elects to substitute Qualified
Substitute Timeshare Loans for an Original Club Loan, the applicable Originator
shall use best efforts to cause each such Qualified Substitute Timeshare Loan
to be, in the following order of priority, (i) the Upgrade Club Loan related to
such Original Club Loan and (ii) an Upgrade Club Loan unrelated to such
Original Club Loan. 

18

          SECTION
6.3.     Optional Purchase or Substitution of
Defaulted Timeshare Loans.

                    Pursuant
to the Purchase Agreement, with respect to any Defaulted Timeshare Loans, on
any date, the applicable Originator, as designee of the Seller, shall have the
option, but not the obligation, to either (i) purchase the Defaulted Timeshare
Loan at the Repurchase Price for such Defaulted Timeshare Loan or (ii)
substitute one or more Qualified Substitute Timeshare Loans for such Defaulted
Timeshare Loan and pay the related Substitution Shortfall Amounts, if any; provided,
however, that the option to repurchase a Defaulted Timeshare Loan or to
substitute one or more Qualified Substitute Timeshare Loans for a Defaulted
Timeshare Loan is limited on any date to the Optional Purchase Limit and the
Optional Substitution Limit, respectively. The applicable Originator, as
designee of the Seller, shall purchase or substitute Defaulted Timeshare Loans
as provided herein and shall deposit the related Repurchase Price and
Substitution Shortfall Amounts, if any, in the Collection Account as set forth in
Section 6.4 hereof. The applicable Originator may irrevocably waive its option
to purchase or substitute a Defaulted Timeshare Loan by delivering or causing
to be delivered to the Buyer a Waiver Letter in the form of Exhibit L attached
hereto.  

          SECTION
6.4.     Payment of Repurchase Prices and
Substitution Shortfall Amounts. 

                    The
Seller shall remit or cause to be remitted all amounts in respect of Repurchase
Prices and Substitution Shortfall Amounts payable during the related Due Period
in immediately available funds to the Collection Account on the Business Day
immediately preceding the related Distribution Date for such Due Period. 

          SECTION
6.5.     Schedule of Timeshare Loans.

                    The
Seller shall provide, or cause to be provided, a Schedule of Timeshare Loans to
the Buyer on any date on which a Timeshare Loan is purchased, repurchased or
substituted with an electronic supplement to the Schedule of Timeshare Loans
reflecting the removal and/or substitution of Timeshare Loans and subjecting
any Qualified Substitute Timeshare Loans to the provisions thereof. 

          SECTION
6.6.     Officer’s Certificate. 

                    No
substitution of a Timeshare Loan shall be effective unless the Buyer shall have
received an Officer’s Certificate from the applicable Originator indicating
that (i) the new Timeshare Loan meets all the criteria of the definition of
“Qualified Substitute Timeshare Loan”, (ii) the Timeshare Loan Files for such
Qualified Substitute Timeshare Loan have been delivered to the Custodian or
shall be delivered within five (5) Business Days from the related Transfer
Date, and (iii) the Timeshare Loan Servicing Files for such Qualified
Substitute Timeshare Loan have been delivered to the Servicer. 

          SECTION
6.7.     Qualified Substitute Timeshare Loans. 

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

19

          SECTION
6.8.     Release.

                    (a)          The
Seller shall be entitled to obtain an assignment and release from the Buyer for
any Timeshare Loan purchased, repurchased or substituted under Article VI
hereof, (i) upon satisfaction of each of the applicable provisions of Article
VI hereof, (ii) in the case of any purchase or repurchase, after a payment by
the Seller of the Repurchase Price of the related Timeshare Loan, and (iii) in
the case of any substitution, after payment by the Seller of the applicable
Substitution Shortfall Amounts, if any, pursuant to the applicable provisions
of Article VI hereof. 

                    (b)          The
Seller shall be entitled to obtain an assignment and release from the Buyer of
any Timeshare Loan which has been paid in full. 

                    (c)          In
connection with (a) and (b) above, the Buyer shall execute and deliver such
releases, endorsements and assignments as are provided to it by the Seller, in
each case, without recourse, representation or warranty, as shall be necessary
to vest in the Seller or its designee, the legal and beneficial ownership of
each Timeshare Loan being released pursuant to this Section 6.8. The Servicer
shall deliver a Request for Release to the Custodian with respect to the
related Timeshare Loan Files being released pursuant to this Section 6.8, and
such files shall be transferred to the Seller or its designee. 

          SECTION
6.9     Sole Remedy/Nonrecourse. 

                    It
is understood and agreed that the obligations of the Seller contained in
Section 6.1 hereof to cure a breach, or to repurchase or substitute related
Defective Timeshare Loans and the obligation of the Seller to indemnify
pursuant to Section 9.1 hereof shall constitute the sole remedies available to
the Buyer and its permitted assignees for the breaches of any representation or
warranty contained in Article XII hereof, and such remedies are not intended to
and do not constitute “credit recourse” to the Seller. 

ARTICLE VII.

SERVICING OF TIMESHARE LOANS

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

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

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

20

          SECTION
7.2.     Payments on the Timeshare Loans. 

                    (a)          The
Servicer shall, in a manner consistent with the Servicing Standard, collect all
payments made under each Timeshare Loan and direct each applicable Obligor to
timely make all payments in respect of his or her Timeshare Loan to the Lockbox
Account maintained at the Lockbox Bank. 

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

                    (c)          Subject
to subsection (d) below, the Buyer agrees to and shall direct the Lockbox Bank
by written notice to remit all collections in respect of the Timeshare Loans on
deposit in the Lockbox Account (other than an amount equal to twenty thousand
dollars ($20,000) that shall remain in the Lockbox Account for administrative
purposes) to the Collection Account on each Business Day of the Lockbox Bank
via automated repetitive wire. The Buyer agrees and covenants that such written
notice shall not be changed without the written consent of the Seller and Servicer.

                    (d)          Liquidation
Expenses shall be reimbursed as Additional Servicing Compensation to the
Servicer in accordance with Section 4.2(a) hereof. To the extent that the
Servicer has received any Liquidation Expenses as Additional Servicing
Compensation and shall subsequently recover any portion of such Liquidation
Expenses from the related Obligor, the Servicer shall deposit such amounts into
the Collection Account. 

                    (e)          The
Servicer agrees that to the extent it receives any amounts in respect of any
insurance policies which are not payable to the Obligor or otherwise necessary
for the intended use, or any other collections relating to the Assets, it shall
deposit such amounts to the Collection Account within two (2) Business Days of
receipt thereof (unless otherwise expressly provided herein). 

          SECTION
7.3.     Duties and Responsibilities of the
Servicer.

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

	
  

 	
  

 	
  

 
	
  

 	
 (i)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

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

 

21

	
  

 	
  

 	
  

 
	
  

 	
 (iii)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (iv)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (v)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (vi)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (vii)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (viii)

 	
 use
 reasonable best efforts to enforce the purchase and substitution obligations
 of the applicable Originator with respect to breaches of representations and
 warranties related to the Timeshare Loans; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (ix)

 	
 refrain
 from modifying, waiving or amending the terms of any Timeshare Loan; provided,
 however, the Servicer may modify, waive or amend a Timeshare Loan for
 which a default on such Timeshare Loan has occurred or is imminent and such
 modification, amendment or waiver will not (i) materially alter the interest
 rate on or the principal balance of such Timeshare Loan, (ii) shorten the
 final maturity of, lengthen the timing of payments of either principal or
 interest, or any other terms of, such Timeshare Loan in any manner which
 would have a material adverse effect on the Buyer, (iii) adversely affect the
 Timeshare Property underlying such Timeshare Loan or (iv) reduce materially
 the likelihood that payments of interest and principal on such Timeshare Loan
 shall be made when due; provided, further, the Servicer may grant
 a single extension of the final maturity of a Timeshare Loan if the Servicer,
 in its reasonable discretion determines that (A) such Timeshare Loan is in
 default or a default on such Timeshare Loan is likely to occur in the
 foreseeable future and (B) the value of such Timeshare Loan will be enhanced
 by such extension; provided, further, the Servicer shall not be
 permitted to modify, waive or amend the terms of any Timeshare Loan if the
 sum of the Cut-Off Date Loan Balance of such Timeshare Loan and the Cut-Off
 Date Loan Balances of all other Timeshare Loans for which the Servicer has
 modified, waived or amended the terms thereof exceeds one percent (1%) of the
 aggregate Cut-off Date Loan Balances of all Sale Date Loan Pools purchased by
 the Buyer; 

 

22

	
  

 	
  

 	
  

 
	
  

 	
 (x)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (xi)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (xii)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (xiii)

 	
 in
 the event that a Defaulted Timeshare Loan is not or cannot be assigned from
 the Buyer to the Seller pursuant to Section 6.8 hereof, the Servicer shall,
 in accordance with the Servicing Standard and the Collection Policy, promptly
 institute collection procedures, which may include, but is not limited to,
 cancellation, termination or foreclosure proceedings or obtaining a
 deed-in-lieu of foreclosure (each, a “Foreclosure
 Property”). Upon the Timeshare Property becoming a Foreclosure
 Property, the Servicer shall cause the Remarketing Agent to promptly attempt
 to remarket such Foreclosure Property in accordance with and pursuant to the
 Remarketing Agreement. The Remarketing Fees due under the Remarketing Agreement
 shall constitute Liquidation Expenses and upon reimbursement to the Servicer
 shall be paid by the Servicer to the Remarketing Agent.

 

23

                    (b)          The
Servicer may not sell any of the Foreclosure Property that becomes part of the
Assets except for or as specifically permitted by this Agreement. 

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

                    (d)          For
so long as Bluegreen or any of its Affiliates controls the Timeshare
Association for any Resort, and Bluegreen or an Affiliate thereof is the
manager, the related management contract and master marketing and sale
contract, if applicable, may be amended or modified in a manner that reasonably
may be determined to have a material adverse effect on the Buyer only with the
prior written consent of the Buyer, which consent shall not be unreasonably
withheld or delayed. 

                    (e)          In
the event any Lien (other than a Permitted Lien) attaches to any Timeshare Loan
or related collateral from any Person claiming from and through the applicable
Originator or one of its Affiliates which materially adversely affects the
Seller’s interest in such Timeshare Loan, such Originator shall, within the
earlier to occur of ten (10) Business Days after such attachment or the
respective lienholders’ action to foreclose on such lien, either (i) cause such
Lien to be released of record, (ii) provide the Buyer with a bond in accordance
with the applicable laws of the state in which the Timeshare Property is
located, issued by a corporate surety acceptable to the Buyer, in an amount and
in form reasonably acceptable to the Buyer or (iii) provide the Buyer with such
other security as the Buyer may reasonably require. 

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

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

24

                    (i)          The
Servicer shall comply in all material respects with the Collection Policy in
effect on the Closing Date (or, as amended from time to time with the consent
of the Buyer) and with the terms of the Timeshare Loans. 

          SECTION
7.4.     Servicer Termination Event.

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

	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 any
 failure by the Servicer to make any required payment, transfer or deposit
 when due hereunder and the continuance of such default for a period of two
 (2) Business Days; provided, however, that the period within
 which the Servicer shall make any required payment, transfer or deposit shall
 be extended to such longer period as is appropriate in the event of a Force
 Majeure Delay, provided, further, that such longer period shall
 not exceed seven (7) Business Days; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 any
 failure by the Servicer to provide any required report within five (5)
 Business Days of when such report is required to be delivered hereunder; provided,
 however, that the period within which the Servicer shall provide any
 report shall be extended to such longer period as is appropriate in the event
 of a Force Majeure Delay, provided, further, that such longer
 period shall not exceed (10) ten Business Days; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (iv)

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

 

25

	
  

 	
  

 	
  

 
	
  

 	
 (v)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (vi)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (vii)

 	
 a
 Timeshare Portfolio Performance Event that remains uncured for three
 consecutive Due Periods and the Recovery Ratio is less than fifty percent
 (50%). 

 

26

	
  

 	
  

 	
  

 
	
  

 	
 (viii)

 	
 A
 monetary obligation of the Servicer, in an amount at any one time of greater
 than $40 million, to a third party is accelerated due to an event of default
 to a date earlier than the date upon which such amount is contractually due
 and is not waived, cured, extended, or paid within thirty (30) days of such
 due date; 

 

                    If
any Servicer Termination Event shall have occurred and not been waived
hereunder, the Buyer may, terminate, by notice in writing to the Servicer, all
of the rights and obligations of the Servicer, as Servicer under this
Agreement. The Buyer shall immediately give written notice of such termination
to the Backup Servicer, and, in the event of the occurrence and continuance of
the Servicer Termination Event described in clause (a)(viii) of the definition
thereof, the Buyer may elect to cease purchasing Assets from the Seller
pursuant to Article II of this Agreement. 

                    Unless
consented to by the Buyer, the Seller may not waive any Servicer Termination
Event. 

                    (b)          Replacement
of Servicer. From and after the receipt by the Servicer of such written
termination notice or the resignation of the Servicer pursuant to Section 7.10
hereof, all authority and power of the Servicer under this Agreement, whether
with respect to the Timeshare Loans or otherwise, shall, pass to and be vested
in the successor Servicer appointed by the Buyer and Seller (which may be the Backup
Servicer), and the duties and obligations of the Servicer shall terminate. The
Servicer shall perform such actions as are reasonably necessary to assist any
successor Servicer, the Buyer and the Backup Servicer in such transfer. If the
Servicer fails to undertake such action as is reasonably necessary to
effectuate such a transfer, the Buyer is hereby authorized and empowered to
execute and deliver, on behalf of and at the expense of the Servicer, as
attorney-in-fact or otherwise, any and all documents and other instruments, and
to do or accomplish all other acts or things reasonably necessary to effect the
purposes of such notice of termination. The Servicer agrees that if it is
terminated pursuant to this Section7.4, it shall promptly (and, in any event,
no later than five (5) Business Days subsequent to its receipt of the notice of
termination from the Buyer) provide any successor Servicer, the Buyer, the
Backup Servicer or their respective designees (with reasonable costs being
borne by the Servicer) with all documents and records (including, without
limitation, those in electronic form) reasonably requested by it to enable the
successor Servicer to assume the Servicer’s functions hereunder and for the
Backup Servicer to assume the functions required by the Backup Servicing
Agreement, and the Servicer shall cooperate with the Buyer in effecting the
termination of the Servicer’s responsibilities and rights hereunder and the
assumption by a successor Servicer of the Servicer’s obligations hereunder, including,
without limitation, the transfer within one (1) Business Day to the Buyer or
its designee for administration by it of all cash amounts which shall at the
time or thereafter received by it with respect to the Timeshare Loans
(provided, however, that the Servicer shall continue to be entitled to receive
all amounts accrued or owing to it under this Agreement on or prior to the date
of such termination). Notwithstanding anything herein to the contrary, in no
event shall Bluegreen be liable for any Servicing Fee or for any differential
in the amount of the Servicing Fee paid hereunder and the amount necessary to
induce any successor Servicer to assume the obligations of the Servicer under
this Agreement.  

27

                    The
Buyer shall be entitled to be reimbursed by the Servicer, (or by the Assets
pursuant to the extent set forth in Section 4.3(a) hereof) if the Servicer is
unable to fulfill its obligations hereunder for all Servicer Termination Costs.

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

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

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

          SECTION
7.5.     Accountings; Statements and Reports.

                    (a)          Monthly
Servicer Report. Not later than three (3) Business Days prior to the
Distribution Date, the Servicer shall deliver to the Seller, the Buyer, and the
Backup Servicer, a report (the “Monthly
Servicer Report”) substantially in the form of Exhibit G
hereto, detailing certain activity relating to the Timeshare Loans. The Monthly
Servicer Report shall be completed with the information specified therein for
the related Due Period and shall contain such other information as may be
reasonably requested by the Seller, the Buyer or the Backup Servicer in writing
at least five (5) Business Days prior to such Determination Date. Each such
Monthly Servicer Report shall be accompanied by an Officer’s Certificate of the
Servicer in the form of Exhibit H hereto, certifying the accuracy of the
computations reflected in such Monthly Servicer Report.

28

                    (b)          Certification
as to Compliance. The Servicer shall deliver to the Seller and the Buyer,
an Officer’s Certificate on or before June 30 of each year commencing in 2012:
(x) to the effect that a review of the activities of the Servicer during the
preceding calendar year, and of its performance under this Agreement during
such period has been made under the supervision of the officer executing such
Officer’s Certificate with a view to determining whether during such period, to
the best of such officer’s knowledge, the Servicer had performed and observed
all of its obligations under this Agreement, and (y) either (A) stating that
based on such review, no Servicer Termination Event is known to have occurred
and is continuing, or (B) if such a Servicer Termination Event is known to have
occurred and is continuing, specifying such Servicer Termination Event and the
nature and status thereof. 

                    (c)          Annual
Accountants’ Reports. On or before each June 30 of each year commencing in
2012, the Servicer shall (i) cause a firm of independent public accountants to
furnish a certificate or statement (and the Servicer shall provide a copy of
such certificate or statement to the Seller and the Buyer), to the effect that
(1) such firm has examined and audited the Servicer’s servicing controls and
procedures for the previous calendar year and that such independent public
accountants have examined certain documents and records (including computer
records) and servicing procedures of the Servicer relating to the Timeshare
Loans, (2) they have examined the most recent Monthly Servicer Report prepared
by the Servicer and three other Monthly Servicer Reports chosen at random by
such firm and compared such Monthly Servicer Reports with the information
contained in such documents and records, (3) their examination included such
tests and procedures as they considered necessary in the circumstances, (4)
their examinations and comparisons described under clauses (1) and (2) above
disclosed no exceptions which, in their opinion, were material, relating to
such Timeshare Loans or such Monthly Servicer Reports, or, if any such
exceptions were disclosed thereby, setting forth such exceptions which, in
their opinion, were material and (5) on the basis of such examinations and
comparisons, such firm is of the opinion that the Servicer has, during the
relevant period, serviced the Timeshare Loans in compliance with this Agreement
and the other Transaction Documents in all material respects and that such
documents and records have been maintained in accordance with this Agreement
and the other Transaction Documents in all material respects, except in each
case for (A) such exceptions as such firm shall believe to be immaterial and
(B) such other exceptions as shall be set forth in such written report. The report
shall also indicate that such firm is independent of the Servicer within the
meaning of the Code of Professional Ethics of the American Institute of
Certified Public Accountants. In the event such independent public accountants
require the Buyer to agree to the procedures to be performed by such firm in
any of the reports required to be prepared pursuant to this Section 7.5(c), the
Servicer shall direct the Buyer in writing to so agree; it being understood and
agreed that the Buyer shall deliver such letter of agreement in conclusive
reliance upon the direction of the Servicer, and the Buyer has not made any
independent inquiry or investigation as to, and shall have no obligation or
liability in respect of, the sufficiency, validity or correctness of such
procedures. 

29

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

          SECTION
7.6.     Records.

                    The
Servicer shall maintain all data for which it is responsible (including,
without limitation, computerized tapes or disks) relating directly to or
maintained in connection with the servicing of the Timeshare Loans (which data
and records shall be clearly marked to reflect that the Timeshare Loans have
been assigned to the Buyer and constitute a portion of the Assets) at the
address specified in Section 14.3 hereof or, upon fifteen (15) days notice to
the Seller and the Buyer, at such other place where any Servicing Officer of
the Servicer is located (or upon one (1) Business Day’s prior written notice if
a Purchase Termination Event or Servicer Termination Event shall have
occurred). 

          SECTION
7.7.     Fidelity Bond and Errors and Omissions
Insurance.

                    The
Servicer shall maintain or cause to be maintained fidelity bond and errors and
omissions insurance with respect to the Servicer in such form and in amounts as
is customary for institutions acting as custodian of funds in respect of
timeshare loans or receivables on behalf of institutional investors; provided that
such insurance shall be in a minimum amount of $1,000,000 per policy and shall
name the Buyer as loss payee or certificate holder. No provision of this
Section 7.7 requiring such fidelity bond and errors and omissions insurance
shall diminish or relieve the Servicer from its duties and obligations as set
forth in this Agreement. The Servicer shall be deemed to have complied with
this provision if one of its respective Affiliates has such fidelity bond and
errors and omissions insurance coverage and, by the terms of such fidelity bond
and errors and omissions insurance policy, the coverage afforded thereunder
extends to the Servicer. Upon a request of the Buyer, the Servicer shall
deliver to the Buyer, a certification evidencing coverage under such fidelity
bond and the errors and omissions insurance. Any such fidelity bond and errors
and omissions insurance policy shall not be canceled or modified in a
materially adverse manner without ten (10) Business Days prior written notice
to the Buyer, provided, that the Servicer agrees to use commercially reasonable
efforts to require the applicable insurer to provide ten (10) days prior
written notice of any cancellation or modification initiated by such insurer. 

30

          SECTION
7.8.     Merger or Consolidation of the Servicer.

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

                    (b)          Any
Person into which the Servicer may be merged or consolidated, or any
corporation resulting from any merger, conversion or consolidation to which the
Servicer shall be a party, or any Person succeeding to the business of the
Servicer, shall be the successor of the Servicer hereunder, without the execution
or filing of any paper or any further act on the part of any of the parties
hereto, anything herein to the contrary notwithstanding; provided, however,
that the successor or surviving Person (i) is a company whose business includes
the servicing of assets similar to the Timeshare Loans and shall be authorized
to lawfully transact business in the state or states in which the related
Timeshare Properties it is to service are situated; (ii) is a U.S. Person, and
(iii) delivers to the Buyer (A) an agreement, in form and substance reasonably
satisfactory to the Buyer, which contains an assumption by such successor
entity of the due and punctual performance and observance of each covenant and
condition to be performed or observed by the Servicer under this Agreement and
the other Transaction Documents to which the Servicer is a party and (B) an
opinion of counsel as to the enforceability of such agreement.

          SECTION
7.9.     Sub-Servicing.

                    (a)          The
Servicer may enter into one or more sub-servicing agreements with a
sub-servicer upon consent of the Buyer, which shall not be unreasonably
withheld, conditioned or delayed. References herein to actions taken or to be
taken by the Servicer in servicing the Timeshare Loans include actions taken or
to be taken by a sub-servicer on behalf of the Servicer. Any sub-servicing
agreement shall be upon such terms and conditions as the Servicer may
reasonably agree and as are not inconsistent with this Agreement. The Servicer
shall be solely responsible for any sub-servicing fees due and payable to such
sub-servicer.

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

          SECTION
7.10.     Servicer
Resignation.

                    The
Servicer shall not resign from the duties and obligations hereby imposed on it
under this Agreement unless and until (i) a successor servicer, acceptable to
the Seller and the Buyer enters into an agreement in form and substance
reasonably satisfactory to the Seller and the Buyer, which contains an
assumption by such successor Servicer of the due and punctual performance and
observance of each covenant and condition to be performed or observed by the
Servicer under this Agreement from and after the date of assumption, and (ii)
the Seller and the Buyer consent to the assumption of the duties, obligations
and liabilities of this Agreement by such successor Servicer. Upon such
resignation, the Servicer shall comply with Section 7.4(b) hereof. 

31

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

          SECTION
7.11.     Fees and Expenses.

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

          SECTION
7.12.     Access to Certain Documentation.

                    Upon
ten (10) Business Days’ prior written notice (or, one (1) Business Day’s prior
written notice after the occurrence and during the continuance of a Servicer
Termination Event), the Servicer shall, from time to time during regular
business hours, as requested by the Seller or the Buyer and, prior to the
occurrence of a Servicer Termination Event, at the expense of the Seller and
upon the occurrence and continuance of a Servicer Termination Event, at the
expense of the Servicer, permit the Seller or the Buyer (i) to examine and make
copies of and abstracts from all books, records and documents (including,
without limitation, computer tapes and disks) in the possession or under the
control of the Servicer relating to the servicing of the Timeshare Loans
serviced by it and (ii) to visit the offices and properties of the Servicer for
the purpose of examining such materials described in clause (i) above, and to
discuss matters relating to the Timeshare Loans with any of the officers,
employees or accountants of the Servicer having knowledge of such matters.
Nothing in this Section 7.12 shall affect the obligation of the Servicer to
observe any applicable law prohibiting disclosure of information regarding the
Obligors, and the failure of the Servicer to provide access to information as a
result of such obligation shall not constitute a breach of this Section 7.12.
The Servicer may require the Seller or the Buyer to execute certain agreements
in order to comply with applicable privacy laws.

32

          SECTION
7.13.     No Offset.

                    Prior
to the Agreement Termination Date, the obligations of Servicer under this
Agreement shall not be subject to any defense, counterclaim or right of offset
which the Servicer has or may have against the Seller or the Buyer, whether in
respect of this Agreement, any Timeshare Loan or otherwise.

          SECTION
7.14.     Account Statements.

                    In
connection with the Servicer’s preparation of the Monthly Servicer Reports, the
Paying Agent agrees to deliver or make available to the Servicer and Buyer a
monthly statement providing the account balance of the Collection Account.

          SECTION
7.15.     Indemnification; Third Party Claim. 

                    The
Servicer agrees to indemnify the Seller, the Paying Agent and the Buyer from
and against any and all actual damages (excluding economic losses related to
the collectability of any Timeshare Loan), claims, reasonable attorneys’ fees
and related costs, judgments, and any other costs, fees and expenses that each
may sustain because of the failure of the Servicer to service the Timeshare
Loans in accordance with the Servicing Standard or otherwise perform its
obligations and duties hereunder in compliance with the terms of this
Agreement, or because of any act or omission by the Servicer due to its
negligence or willful misconduct in connection with its maintenance and custody
of any funds, documents and records under this Agreement, or its release
thereof except as contemplated by this Agreement. The Servicer shall
immediately notify the Seller, the Paying Agent and the Buyer if it has
Knowledge of a claim made by a third party with respect to the Timeshare Loans,
and, if such claim relates to the servicing of the Timeshare Loans by the
Servicer, the Servicer shall assume, with the consent of the Buyer, the defense
of any such claim and pay all expenses in connection therewith, including
reasonable counsel fees, and promptly pay, discharge and satisfy any judgment
or decree which may be entered against it. This Section 7.15 shall survive the
termination of this Agreement or the resignation or removal of the Servicer
hereunder.

          SECTION
7.16.     Backup Servicer. 

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

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

33

                    (c)          Backup
Servicer Duties After Assumption Date. In the event that the Servicer is
terminated or resigns in accordance with this Agreement, the Backup Servicer
agrees that it shall undertake those servicing duties and obligations as set
forth in and subject to Section 2 and Schedule V of the Backup Servicing
Agreement. 

                    (d)
         Backup Servicing Fee. The Backup Servicer shall receive its Backup
Servicing Fee in accordance with Section 4.3 hereof. 

                    (e)         
Termination of Backup Servicer. Notwithstanding anything to the contrary
herein, the Buyer shall have the right (with the consent of the Seller) to
remove the Backup Servicer with or without cause at any time and replace the
Backup Servicer pursuant to the provisions of the Backup Servicing Agreement.
In the event that the Buyer shall exercise its rights to remove and replace
Concord Servicing Corporation as Backup Servicer or Concord Servicing
Corporation shall have terminated the Backup Servicing Agreement in accordance
with the terms thereof, Concord Servicing Corporation shall have no further
obligation to perform the duties of the Backup Servicer under this Agreement.
In the event of a termination of the Backup Servicing Agreement, the Buyer
shall appoint a successor Backup Servicer reasonably acceptable to the Buyer
and the Seller. Any successor Backup Servicer or Servicer appointed pursuant to
this Agreement (i) as a condition to any such appointment, shall be a
nationally recognized and licensed servicer of timeshare loan receivables that
(a) is actively servicing a portfolio of timeshare loans with an aggregate
principal balance of not less than $200,000,000, (b) has servicing and
collection capabilities for all categories of delinquent and defaulted timeshare
loans (including through foreclosure) and (c) is not an Affiliate of the Buyer,
and (ii) shall be required to enter into a written backup servicing agreement
that is reasonably acceptable to each of Seller and Buyer.

          SECTION
7.17.     Recordation. As soon as practicable
after the Closing Date or Transfer Date, as applicable, but in no event later
than ten (10) Business Days after receipt by the Servicer of the original
Mortgage, the Servicer shall cause the Assignment of Mortgage in respect of
each Timeshare Loan to be sent for recording to the appropriate offices. The
Servicer agrees to cause all evidences of recordation to be delivered to the
Custodian to be held as part of the Timeshare Loan Files. 

ARTICLE VIII.

PURCHASE TERMINATION EVENT; REMEDIES

          SECTION
8.1.     Purchase Termination Events.

                    “Purchase Termination Event” wherever used
herein means any one of the following events:

                    (a)          a
non-monetary default in the performance, or breach, of any covenant of the
Seller in this Agreement (other than a covenant dealing with a default in the
performance of which, or the breach of which, is specifically dealt with
elsewhere in this Section 8.1), the continuance of such default or breach for a
period of thirty (30) days (or, if the Seller shall have provided evidence
satisfactory to the Buyer that such covenant cannot be cured in the thirty (30)
day period and that it is diligently pursuing a cure, 60 days) after the
earlier of (x) the Seller first acquiring Knowledge thereof, and (y) the
Buyer’s giving written notice thereof to the Seller; provided, however,
that if such default or breach is in respect of the negative covenants
contained in Section 10.3(a)(i) or (ii) hereof, there shall be no grace period
whatsoever; or

34

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

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

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

                    (e)          the
impairment of the validity of any interest of the Buyer in the Assets in any
material respect, except as expressly permitted hereunder, or the creation of
any material encumbrance on or with respect to such Assets or any portion
thereof not otherwise permitted, which is not stayed or released within ten
(10) days of the Seller having Knowledge of its creation; or

35

                    (f)          the
failure by the Seller to repurchase or cause to be repurchased any Defective
Timeshare Loan or provide or cause to be provided a Qualified Substitute
Timeshare Loan for a Defective Timeshare Loan to the extent required under the
terms of this Agreement; or

                    (g)          nonpayment
of Program Fee Amounts, Buyer Target Loan Pool Repayment Amounts, any fees due
the Buyer, or any other payments or deposits required by the Agreement when
such become due and payable, and continuance of such default for three (3)
Business Days.

          SECTION
8.2.     Remedies.

                    (a)          If
a Purchase Termination Event occurs and is continuing of which a Responsible
Officer of the Seller has Knowledge, the Seller shall immediately give notice
to the Buyer.

                    (b)          Subject
to the provisions set forth in this Agreement, if a Purchase Termination Event
occurs and is continuing, the Buyer may, in its discretion, proceed to protect
and enforce its rights by such appropriate judicial or other proceedings as the
Buyer shall deem most effectual to protect and enforce any such rights, whether
for the specific enforcement of any covenant or agreement in this Agreement or
in aid of the exercise of any power granted herein, or to enforce any other
proper remedy. 

                    (c)          If
a Purchase Termination Event occurs and is continuing, the Buyer may, in its
discretion, elect to cease purchasing Assets pursuant to Article II of this
Agreement. 

          SECTION
8.3.     Rights and Remedies Cumulative.

                    Except
as otherwise provided in this Agreement, no right or remedy herein conferred
upon or reserved to the Buyer is intended to be exclusive of any other right or
remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or
now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent
the concurrent assertion or employment of any other appropriate right or
remedy.

          SECTION
8.4.     Delay or Omission Not Waiver.

                    No
delay or omission of the Buyer to exercise any right or remedy accruing upon
any Purchase Termination Event shall impair any such right or remedy or
constitute a waiver of any such Purchase Termination Event or an acquiescence
therein. Every right and remedy given by this Article VIII to the Buyer may be
exercised from time to time, and as often as may be deemed expedient, by the
Buyer, as the case may be.

36

          SECTION 8.5.     Undertaking
for Costs.

                    All
parties to this Agreement agree that any court may in its discretion require,
in any suit for the enforcement of any right or remedy under this Agreement, or
in any suit against the Buyer for any action taken, suffered or omitted by it
as Buyer, the filing by any party litigant in such suit of an undertaking to
pay the costs of such suit, and that such court may in its discretion assess
reasonable costs, including reasonable attorneys’ fees, against any party
litigant in such suit, having due regard to the merits and good faith of the
claims or defenses made by such party litigant. 

          SECTION
8.6.     Waiver of Stay or Extension Laws.

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

          SECTION
8.7.     Performance and Enforcement of Certain
Obligations. 

                    Promptly
following a request from the Buyer, the Seller shall take all such lawful
action as the Buyer may request to compel or secure the performance and
observance by the initial Servicer of each of its respective obligations to the
Seller or Buyer under or in connection with any Transaction Document and to
exercise any and all rights, remedies, powers and privileges lawfully available
to the Seller under or in connection with any Transaction Document to the
extent and in the manner directed by the Buyer, including the transmission of
notices of default on the part of the initial Servicer thereunder and the
institution of legal or administrative actions or proceedings to compel or
secure performance by the initial Servicer of its obligations under the Transaction
Documents.

ARTICLE IX.

INDEMNIFICATION

          SECTION
9.1.     Buyer Indemnified by Seller. 

                    The
Seller agrees to indemnify the Buyer and its directors,
officers, agents, employees, Affiliates, owners and representatives (the
“Buyer Indemnified Party”) against
any and all claims, losses, liabilities, (including reasonable accountants’ and
attorneys’ fees, charges, and costs) that the Buyer may sustain directly
related to any breach of the representations and warranties of the Seller under
Article XII hereof (the “Indemnified Amounts”)
excluding, however (i) Indemnified
Amounts to the extent resulting from the gross negligence or willful misconduct
on the part of such Buyer Indemnified Party; (ii) any recourse for any
uncollectible Timeshare Loan not related to a breach of representation or
warranty; (iii) recourse to the Seller for a Defective Timeshare Loan so long
as the same is cured, substituted or repurchased pursuant to Section 6.1
hereof, (iv) income, franchise or similar taxes by such Buyer Indemnified Party
arising out of or as a result of this Agreement or the sale of the Timeshare
Loans; (v) Indemnified Amounts attributable to any violation by a Buyer
Indemnified Party of any Requirement of Law related to a Buyer Indemnified
Party; or (vi) the operation or administration of the Buyer Indemnified Party
generally and not related to the enforcement of this Agreement. The Seller
shall (A) promptly notify the Buyer if a claim is made by a third party with
respect to this Agreement or the Timeshare Loans, and relating to (i) the
failure by the Seller to perform its duties in accordance with the terms of
this Agreement or (ii) a breach of the Seller’s representations, covenants and
warranties contained in this Agreement, (B) assume (with the consent of the
Buyer, which consent shall not be unreasonably withheld), the defense of any
such claim and (C) pay all expenses in connection therewith, including
reasonable legal counsel fees and promptly pay, discharge and satisfy any judgment,
order or decree which may be entered against the Buyer in respect of such
claim. If the Seller shall have made any indemnity payment pursuant to this
Section 9.1 and the recipient thereafter collects from another Person any
amount relating to the matters covered by the foregoing indemnity, the
recipient shall promptly repay such amount to the Seller. The obligations of
the Seller under this Section 9.1 to indemnify the Buyer shall survive the
Closing Date of this Agreement and continue until the Agreement Termination
Date.  

37

          SECTION
9.2.     Seller
Indemnified by Buyer. 

                    The
Buyer shall indemnify, defend, and hold harmless Bluegreen and the Seller, and
their respective directors, officers, agents, employees,
Affiliates, owners and representatives (the “Seller
Indemnitees”) against any and all losses, claims, damages, expenses,
actions and liabilities, joint or several, including, without limitation,
reasonable accountants’ and attorneys’ fees, charges, and costs (the “Seller Losses”), to which any or all of the Seller Indemnitees
may become subject, insofar as such Seller Losses (a) arise after the
Closing Date and are related to the gross negligence or willful misconduct of
the Buyer or the other Buyer Indemnified Parties, or (b) are based on any breach of any representation, warranty, agreement or covenant of the Buyer in this Agreement; and, on notice, the Buyer shall
reimburse the Seller Indemnitees for
all such Seller Losses together with any legal or other expenses reasonably
incurred by any of them in connection
with investigating or defending any such Seller Losses. Notwithstanding
the foregoing, nothing in this Agreement shall obligate the Buyer to indemnify the Seller Indemnitees for any liability
which occurs as a result of a breach of this Agreement by the Seller, or
for the gross negligence or willful misconduct by the Seller Indemnitees. The
obligations of the Buyer under this Section 9.2 to indemnify the Seller
Indemnitees shall survive the Closing Date of this Agreement and continue until
the Agreement Termination Date.

38

ARTICLE X.

COVENANTS OF THE SELLER/BUYER

          SECTION
10.1.     Existence; Merger; Consolidation, etc.

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

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

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

          SECTION
10.2.     Protection of Assets; Further Assurances.

                    (a)          Subject
to the terms of this Agreement, the Seller and Buyer shall 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 shall take such other action as may be necessary or
advisable to:

	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 Grant more effectively the assets comprising all or any portion of
 the Assets or carry out more effectively the purposes hereof;

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 publish notice of, or protect the validity of, any Grant made or to
 be made by this Agreement and perfect the security interest contemplated
 hereby, as applicable, in favor of the Seller or Buyer;

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 enforce or cause the Servicer to enforce any of the Timeshare Loans
 in accordance with the Servicing Standard; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (iv)

 	
 preserve and defend title to the Timeshare Loans (including, subject
 to the terms of this Agreement, the right to receive all payments due or to
 become due thereunder), the interests in the Timeshare Properties, or other
 property included in the Assets and preserve and defend the rights of the
 Buyer in the Assets (including, subject to the terms of this Agreement, the
 right to receive all payments due or to become due thereunder) against the
 claims of all Persons and parties other than as permitted hereunder.

 

39

                    (b)          The
Seller and Buyer shall not take any action and shall use their commercially
reasonable efforts not to permit any action to be taken by others that would
release any Person from any of such Person’s material covenants or obligations
under any instrument or agreement included in the Assets 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 Agreement or the Custodial Agreement or
such other instrument or agreement.

                    (c)          The
Seller and Buyer may contract with or otherwise obtain the assistance of other
Persons to assist them in performing their duties under this Agreement, and any
performance of such duties by a Person identified to the Buyer or Seller in
writing to the other shall be deemed to be action taken by such Person;
provided, however, that no appointment of such Person shall relieve the Seller
or Buyer of its duties and obligations hereunder. Initially, the Buyer and
Seller have contracted with the Servicer, the Backup Servicer and the Custodian
pursuant to this Agreement to assist the Buyer in performing its duties under
this Agreement and the other Transaction Documents.  

                    (d)          The
Seller and Buyer shall punctually perform and observe all of their obligations
and agreements contained in this Agreement, the Transaction Documents and in
the instruments and agreements included in the Assets.

                    (e)          Subject
to the terms of this Agreement, and without derogating from the absolute nature
of the assignment granted to the Buyer under this Agreement or the rights of
the Buyer hereunder, the Seller and Buyer agree (i) that they shall not,
without the prior written consent of the other, amend, modify, waive,
supplement, terminate or surrender, or agree to any amendment, modification,
supplement, termination, waiver or surrender of, the terms of any Timeshare
Loan (except to the extent otherwise provided in this Agreement or in the
Timeshare Loan Documents) or the Transaction Documents, or waive timely
performance or observance by the Servicer or the Custodian, under this
Agreement; and (ii) that any such amendment shall not reduce in any manner the
amount of, or accelerate or delay the timing of, distributions that are
required to be made to Buyer or Seller pursuant to Section 4.3 or this
Agreement. If any such amendment, modification, supplement or waiver shall be
so consented to by the Buyer, the Seller agrees, promptly following a request
by the Buyer, to execute and deliver, at its own expense, such agreements, instruments,
consents and other documents as the Buyer may deem necessary or appropriate in
the circumstances. 

                    (f)          The
Seller, upon the Seller’s failure to do so, hereby irrevocably designates the
Buyer and the Servicer, severally, its agents and attorneys-in-fact to execute
any financing statement or continuation statement or Assignment of Mortgage
required pursuant to this Section 10.2; provided, however, that
such designation shall not be deemed to create a duty of the Buyer to monitor
the compliance of the Seller with the foregoing covenants, and provided,
further, that the duty of the Buyer or the Servicer to execute any
instrument required pursuant to this Section 10.2 shall arise only if a
Responsible Officer of the Buyer or the Servicer, as applicable, has Knowledge
of any failure of the Seller to comply with the provisions of this Section
10.2.

40

                    (g)          
In the event that the Seller shall receive any payments in respect of a
Timeshare Loan after the Closing Date or Sale Date, as applicable, the Seller
shall, within two (2) Business Days of receipt, transfer or cause to be
transferred, such payments to the Lockbox Account. 

                    (h)          Subject
to the terms of this Agreement, the Seller and Buyer agree from time to time,
at their respective expense, promptly to execute and deliver all further
instruments and documents, and to take all further actions, that may be
necessary, or that the Buyer may reasonably request, to perfect, protect or
more fully evidence the Assets, or to enable the Buyer or Seller to exercise
and enforce its rights and remedies hereunder or under any of the other
Transaction Documents to which it is a party. The Seller shall deliver to the
Custodian a Lost Note Affidavit hereto in each instance where it is unable to
provide a signed original promissory note, and the Buyer agrees that such Lost
Note Affidavit shall be sufficient to satisfy the Seller’s obligations
hereunder and under the Custodial Agreement. 

          SECTION
10.3.     Additional Covenants.

                    (a)          The
Seller shall not:

	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 sell, transfer, exchange or otherwise dispose of any portion of the
 Assets except as expressly permitted by this Agreement;

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 claim any credit on, or make any deduction from, the principal of, or
 interest on, any of the Timeshare Loans;

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 engage in any business or activity other than as permitted by its
 organizational documents, this Agreement and the other Transaction Documents
 and any activities incidental thereto;

 
	
  

 	
  

 	
  

 
	
  

 	
 (iv)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (v)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (vi)

 	
 (A) permit the validity or effectiveness of this Agreement or any
 Grant hereby to be impaired, or permit the Lien of this Agreement to be
 amended, hypothecated, subordinated, terminated or discharged, or permit any
 Person to be released from any covenants or obligations under this Agreement,
 except as may be expressly permitted hereby, (B) permit any lien, charge,
 security interest, mortgage or other encumbrance to be created on or to
 extend to or otherwise arise upon or burden the Assets or any part thereof or
 any interest therein or the proceeds thereof (other than Permitted Liens and
 tax liens, mechanics; liens and other liens that arise by operation of law,
 in each case on any of the Resort Interests and arising solely as a result of
 an act or omission of the related Obligor) other than the Lien of this
 Agreement or (C) except as otherwise contemplated in this Agreement, permit
 the Lien of this Agreement (other than with respect to any Permitted Liens or
 such tax, mechanic’s or other lien) not to constitute a valid first priority
 security interest in the Assets;

 

41

	
  

 	
  

 	
  

 
	
  

 	
 (vii)

 	
 change the location of its principal place of business without the
 prior notice to the Buyer.

 

          SECTION
10.4.     Notice of Purchase Termination
Event/Servicer Termination Event. 

                    Immediately
upon the Seller having Knowledge of the existence of any condition or event
which constitutes a Purchase Termination Event or a Servicer Termination Event,
the Seller shall deliver to the Buyer a written notice describing its nature
and period of existence and what action the Seller is taking or proposes to
take with respect thereto.

          SECTION
10.5.     Report on Proceedings. 

                    Promptly
upon the Seller’s or the Buyer’s becoming aware of (i) any proposed or pending
investigation of it by any Governmental Authority; or (ii) any pending or
proposed court or administrative proceeding which involves or is reasonably
likely to involve the possibility of materially and adversely affecting the
properties, business, prospects, profits or condition (financial or otherwise)
of it, such Person shall deliver to the other a written notice specifying the
nature of such investigation or proceeding and what action such Person is
taking or proposes to take with respect thereto and evaluating its merits.

          SECTION
10.6.     Taxes.

                    The
Seller and Buyer shall pay all taxes when due and payable or levied against its
respective assets, properties or income, except to the extent such Person is
contesting the same in good faith and has set aside adequate reserves in
accordance with GAAP for the payment thereof. 

          SECTION
10.7.     Restricted Payments.

                    Neither
of the Seller nor the Buyer shall, directly or indirectly, make or cause to be
made payments to or distributions from the Collection Account except in
accordance with this Agreement and the Transaction Documents.

42

          SECTION
10.8.     Further Instruments and Acts. 

                    Upon
request of, as applicable, the Buyer or the Seller to the other, the Person to
whom such request is made shall 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 Agreement.

ARTICLE XI.

REACQUISITION OF SALE DATE LOAN POOLS

          SECTION
11.1.     Clean-up Call; Optional Reacquisition;
Election to Reacquire. 

                    The
initial Servicer shall have the option to reacquire not less than all of the
Timeshare Loans in the Aggregate Sale Date Loan Pool any date after the
Optional Reacquisition Date by payment of an amount equal to the Reacquisition
Price (unless amounts in the Trust Accounts are sufficient to make such
payments).

          SECTION
11.2.     Notice to Buyer. 

                    The
Servicer shall give written notice of its intention to reacquire the Aggregate
Sale Date Loan Pool to the Buyer at least fifteen (15) days prior to the
Reacquisition Date (unless a shorter period shall be satisfactory to the
Buyer).

          SECTION
11.3.     Notice of Reacquisition by the Servicer.

                    Notices
of reacquisition shall be given by electronic transmission and by first class
mail, postage prepaid, mailed not less than for fifteen (15) days prior to the
Reacquisition Date, to the Buyer. All notices of reacquisition shall state (a)
the Reacquisition Date, (b) the Reacquisition Price, (c) that the Aggregate
Sale Date Loan Pool is being reacquired, (d) the Timeshare Loans comprising the
Aggregate Sale Date Loan Pool and (e) that on the Reacquisition Date, the
Reacquisition Price shall become due and payable in respect of the
reacquisition of the Aggregate Sale Date Loan Pool, and that the Program Fee
shall cease to accrue if payment is made on the Reacquisition Date. 

          SECTION
11.4.     Deposit of Reacquisition Price. 

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

43

          SECTION
11.5.     Timeshare Loans on Reacquisition Date.

                    Notice of reacquisition having been given as provided in Section 11.2
hereof and deposit of the Reacquisition Price with the Buyer having been made
as provided in Section 11.4 hereof, the Aggregate Sale Date Loan Pool being
reacquired shall on the Reacquisition Date, become due and payable at the Reacquisition Price, and, on such
Reacquisition Date, the Aggregate Sale Date Loan Pool shall cease to accrue the
Program Fee. The Buyer shall apply all available funds in the Trust Accounts
and the Buyer shall be paid any remaining portion of the Reacquisition Price by
the Servicer upon transfer of the Aggregate Sale Date Loan Pool being purchased
to the Servicer or its designee. If the Servicer shall have failed to deposit
the Reacquisition Price with the Buyer, the principal and Program Fee with
respect to the Aggregate Sale Date Loan Pool shall, until paid, continue to
accrue at the applicable Program Fee Rate. The Servicer’s failure to deposit
the Reacquisition Price shall not constitute a Purchase Termination Event
hereunder.

ARTICLE XII.

REPRESENTATIONS AND WARRANTIES

          SECTION
12.1.     Representations and Warranties of the
Seller.

                    The
Seller represents and warrants to the Buyer, the Servicer, and the Backup
Servicer as of the Closing Date, and on each applicable Sale Date (with respect
to the applicable Timeshare Loans) and Transfer Date (with respect to any
Qualified Substitute Timeshare Loans transferred on such Transfer Date), as
follows:

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

                    (b)          Binding
Obligation. This Agreement and the Transaction Documents to which it is a
party have each been duly executed and delivered on behalf of the Seller and
this Agreement and each Transaction Document to which it is a party constitutes
a legal, valid and binding obligation of the Seller enforceable in accordance
with its terms, subject, as to enforceability, to bankruptcy, insolvency,
reorganization, liquidation, dissolution, moratorium and other similar
applicable laws affecting the enforceability of creditors’ rights generally
applicable in the event of the bankruptcy, insolvency, reorganization,
liquidation or dissolution, as applicable, of it and to general principles of
equity, regardless of whether such enforceability shall be considered in a
proceeding in equity or at law.

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

44

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

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

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

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

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

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

45

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

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

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

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

46

                    (n)          Employee
Benefit Plan Liability. As of the Closing Date and as of each Sale Date and
each Transfer Date, as applicable, (A) with respect to plan years beginning
before January 1, 2008, neither the Seller nor any of its Commonly Controlled
Affiliates incurred any “accumulated funding deficiency” (as such term was
defined under ERISA and the Code for such years), whether or not waived, with
respect to any “Employee Pension Benefit Plan”
(as defined below) that either individually or in the aggregate could Cause a
Material Adverse Effect (as defined below), and, to the Seller’s Knowledge, for
any such year, no event has occurred or circumstance exists that resulted, or
may result, in any accumulated funding deficiency of any such plan that either
individually or in the aggregate could Cause a Material Adverse Effect; (B)
with respect to plan years beginning after December 31, 2007, neither the
Seller nor any of its Commonly Controlled Affiliates has any unpaid “minimum
required contribution” (as such term is defined under ERISA and the Code) with
respect to any Employee Pension Benefit Plan, whether or not such unpaid
minimum required contribution is waived, that either individually or in the
aggregate could Cause a Material Adverse Effect, and, to the Seller’s
Knowledge, no event has occurred or circumstance exists that may result in any
unpaid minimum required contribution as of the last day of the current plan
year of any such plan that either individually or in the aggregate could Cause
a Material Adverse Effect; (C) the Seller and each of its Commonly Controlled
Affiliates have no outstanding liability for any undisputed contribution required
under any Seller Multiemployer Plan (as defined below) that either individually
or in the aggregate could Cause a Material Adverse Effect; and (D) the Seller
and each of its Commonly Controlled Affiliates have no outstanding liability
for any disputed contribution required under any Seller Multiemployer Plan that
either individually or in the aggregate could Cause a Material Adverse Effect.
As of the Closing Date and as of each Sale Date and Transfer Date, as
applicable, to the Seller’s Knowledge (1) neither the Seller nor any of its
Commonly Controlled Affiliates has incurred any Withdrawal Liability (as
defined below) that either individually or in the aggregate could Cause a
Material Adverse Effect, and (2) no event has occurred or circumstance exists
that could result in any Withdrawal Liability that either individually or in
the aggregate could Cause a Material Adverse Effect. As of the Closing Date and
as of each Sale Date and Transfer Date, as applicable, to the Seller’s
Knowledge, neither the Seller nor any of its Commonly Controlled Affiliates has
received notification of the reorganization, termination, partition, or
insolvency of any Multiemployer Plan that could either individually or in the
aggregate Cause a Material Adverse Effect. For purposes of this subsection
12.1(n), “Cause a Material Adverse Effect”
means reasonably be expected to result in a material adverse effect on the
Seller and its Commonly Controlled Affiliates, in the aggregate; “Commonly Controlled Affiliates” means those
direct or indirect Affiliates of the Seller that would be considered a single
employer with the Seller under Section 414(b), (c), (m), or (o) of the Code; “Employee Pension Benefit Plan” means an
employee pension benefit plan as such term is defined in Section 3(2) of ERISA
that is sponsored, maintained or contributed to by the Seller or any of its
Commonly Controlled Affiliates (other than a Seller Multiemployer Plan); “Multiemployer Plan” means a multiemployer
plan as such term is defined in Section 3(37) of ERISA; “Seller Multiemployer Plan” means a
Multiemployer Plan to which the Seller or any of its Commonly Controlled
Affiliates contributes or in which the Seller or any of its Commonly Controlled
Affiliates participates; and “Withdrawal
Liability” means liability as determined under ERISA for the
complete or partial withdrawal of the Seller or any of its Commonly Controlled
Affiliates from a Multiemployer Plan. 

47

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

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

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

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (i)

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

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (ii)

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

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (iii)

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

 

48

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (iv)

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

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (v)

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

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (vi)

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

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (vii)

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

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (viii)

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

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (ix)

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

 

49

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (x)

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

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (xi)

 	
 The Club Association is a not-for-profit corporation, duly formed,
 validly existing and in good standing under the laws of the State of Florida;
 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (xii)

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

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (xiii)

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

 

          SECTION
12.2. 

                    The
Seller hereby represents and warrants to the Buyer that it has entered into the
Purchase Agreement, that the applicable Originator has made the representations
and warranties in the Purchase Agreement as set forth therein, that such
representations and warranties run to and are for the benefit of the Seller,
and the Buyer, and that pursuant to Section 1.8 hereof, the Seller has
transferred and assigned to the Buyer all rights and remedies under the
Purchase Agreement.

          SECTION
12.3. 

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

          SECTION
12.4. 

                    In
consideration of Sections 12.2 and 12.3 hereof, the Seller hereby makes the
representations and warranties relating to the Timeshare Loans contained in
Schedule I hereto for the benefit of the Buyer as of each Sale Date and each
Transfer Date (only with respect to each Qualified Substitute Timeshare Loan
transferred on such Transfer Date), as applicable. 

50

          SECTION
12.5.     Survival of Seller Representation and
Warranties. 

                    It
is understood and agreed that the representations and warranties set forth in
Sections 12.1, 12.2, 12.3 and 12.4 hereof shall survive the sale of each
Timeshare Loan to the Buyer and shall continue so long as any such Timeshare
Loans shall remain outstanding or until such time as such Timeshare Loans are
repurchased, purchased or a Qualified Substitute Timeshare Loan is provided
pursuant to Article VI hereof. For avoidance of doubt, it is understood and
agreed that with respect to the representations contained in Sections 12.1 and
12.4 hereof, such representations and warranties shall be limited to the date
upon which they were made (i.e., as of the Closing Date, Sale Date or Transfer
Date, as applicable) and shall not be deemed to relate to any subsequent time
notwithstanding their survival.

          SECTION
12.6.     Knowledge Limitation. 

                    With
respect to any representations and warranties contained in Sections 12.1, 12.2,
12.3 and 12.4 which are made to the Seller’s Knowledge, if it is discovered
that any representation and warranty is inaccurate and such inaccuracy materially
and adversely affects the value of a Timeshare Loan or the interests of the
Buyer or any subsequent assignee thereof, then notwithstanding such lack of
Knowledge of the accuracy of such representation and warranty at the time such
representation or warranty was made (without regard to any Knowledge
qualifiers), such inaccuracy shall be deemed a breach of such representation or
warranty solely for purposes of the repurchase or substitution obligations
described in Sections 6.1 (a) or (b) hereof.

          SECTION
12.7.     Representations
and Warranties of the Servicer.

                    The
Servicer hereby represents and warrants to the Buyer, the Seller, and the
Backup Servicer, as of the Closing Date, each Sale Date and each Transfer Date,
the following:

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 Organization and Authority. The Servicer:

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii)

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

 

51

                    (b)          Place
of Business. The address of the principal place of business and chief
executive office of the Servicer is 4960 Conference Way North, Suite 100, Boca
Raton, Florida 33431 and there have been no other such locations during
the immediately preceding four (4) months.

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

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

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

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

52

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

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

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

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

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

                    (l)          Name.
As of the Closing Date, the legal name of the Servicer is as set forth in the
signature page of this Agreement and the Servicer does not have any tradenames,
fictitious names, assumed names or “doing business as” names other than
“Bluegreen Patten Corporation” in North Carolina, “Bluegreen Corporation of
Massachusetts” in Louisiana, and “BXG California, Inc.” in California.

53

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

                    (n)          Reserved.

                    (o)          ACH
Form. The Servicer has delivered a form of the ACH Form to the Backup
Servicer for its review.

          SECTION
12.8.     Representations and Warranties of the
Backup Servicer.

                    The
Backup Servicer hereby represents and warrants to the Buyer, the Seller, the
Servicer and the Buyer, as of the Closing Date and the Assumption Date, the
following:

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 Corporate
 Representations.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

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

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (iii)

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

 

                    (b)          Place
of Business. The address of the principal place of business and chief
executive office of the Backup Servicer is as set forth in Section 14.3 hereof
and there have been no other such locations during the immediately preceding
four months.

54

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

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

                    (e)          Pending
Litigation or Other Proceedings. There is no pending or, to the best of the
Backup Servicer’s Knowledge, threatened action, suit, proceeding or
investigation before any court, administrative agency, arbitrator or
governmental body against or affecting the Backup Servicer which, if decided
adversely, would materially and adversely affect (i) the condition (financial
or otherwise), business or operations of the Backup Servicer, (ii) the ability
of the Backup Servicer to perform its obligations under, or the validity or
enforceability of this Agreement or any other documents or transactions
contemplated under this Agreement, (iii) any property or title of any Obligor
to any Property or (iv) the Buyer’s ability to foreclose or otherwise enforce
the Liens of the Timeshare Loans.

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

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

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

55

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

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

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

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

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

56

          SECTION
12.9.     Representations and Warranties of the
Buyer.

                    The
Buyer hereby represents and warrants and shall be deemed continuously to
represent and warrant to the Servicer, the Seller, and the Backup Servicer, the
following:

                    (a)          Valid
Existence; Good Standing. The Buyer is a federally chartered credit union
duly organized and validly existing in good standing under the laws of the
United States of America; and is duly qualified to perform its obligations
under this Agreement or any other Transaction Document to which it is a party
or under the transactions contemplated hereunder.

                    (b)          Authority
and Power. The Buyer has, and at all times during the term of this Agreement
shall have, all requisite corporate power and authority to conduct its
business, to execute and deliver this Agreement and all documents and
transactions contemplated hereunder and to perform all of its obligations under
this Agreement and any other Transaction Document to which it is a party or
under the transactions contemplated hereunder or thereunder. 

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

                    (d)          No
Violation of Law, Rule, Regulation, etc. The execution, delivery and
performance by the Buyer of this Agreement and any other Transaction Document
to which the Buyer is a party do not and shall not (A) violate any provision of
any law, governmental rule or regulation currently in effect applicable to the
Buyer, including, without limitation, the Federal Credit Union Act and its
promulgating regulations, (B) violate any of the terms and provisions of, nor
constitute (with or without notice or lapse of time) a default under, the
organizational documents of the Buyer, or (C) conflict with, or result in a
breach of, or constitute a default under, any of the provisions of any
indenture, mortgage, deed of trust, contract or other instrument to which the
Buyer is a party or by which it is bound or result in the creation or
imposition of any Lien upon any of its properties pursuant to the terms of any
such indenture, agreement or other instrument.

                    (e)          Governmental
Consent. No consent, approval, order or authorization of, and no filing
with or notice to, any court or other Governmental Authority in respect of the
Buyer is required which has not been obtained in connection with the
authorization, execution, delivery or performance by the Buyer of this
Agreement or any of the other Transaction Documents to which it is a party or
under the transactions contemplated hereunder or thereunder.

57

                    (f)          No
Proceedings. There is no pending or, to the Buyer’s Knowledge, threatened
action, suit or proceeding, nor any injunction, writ, restraining order or
other order of any nature against or affecting the Buyer, its officers,
directors or managers, or the property of the Buyer, in any court or tribunal,
or before any arbitrator of any kind or before or by any Governmental Authority
(i) asserting the invalidity of this Agreement or any of the Transaction
Documents, (ii) seeking to prevent the sale and assignment of any Timeshare
Loan or the related Assets or the consummation of any of the transactions
contemplated thereby, (iii) seeking any determination or ruling that might
materially and adversely affect (A) the performance by the Buyer of this
Agreement or any of the Transaction Documents, (B) the validity or
enforceability of this Agreement or any of the Transaction Documents, (C) any
Timeshare Loan and the related Assets, or (iv) asserting a claim for payment of
money adverse to the Buyer or the conduct of its business or which is
inconsistent with the due consummation of the transactions contemplated by this
Agreement or any of the Transaction Documents.

                    (g)          Buyer
Not Insolvent. The Buyer is solvent and shall not become insolvent after
giving effect to the transactions contemplated by this Agreement and each of
the Transaction Documents.

                    (h)          Possession
of Licenses, Certificates, Franchises and Permits. The Buyer holds all
material licenses, certificates, franchises and permits from all Governmental
Authorities necessary for the conduct of its business, and the Buyer has not
received notice of proceedings relating to the revocation of any such license,
certificate, franchise or permit, which singly or in the aggregate, if the
subject of an unfavorable decision, ruling or finding, would materially and
adversely affect its ability to perform its obligations under this Agreement or
any other Transaction Document to which it is a party or under the transactions
contemplated hereunder or thereunder.

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

          The Buyer
does hereby acknowledge and agree that the representations and warranties
contained in this Section 12.6 shall remain operative and in full force and
effect, shall survive the assignment, transfer and conveyance of the Assets by
the Seller to the Buyer, and shall inure to the benefit of each of Seller and
Bluegreen and their respective designees, successors and permitted assigns.

ARTICLE XIII.

CLUB TRUSTEE

          SECTION
13.1.     Covenants of the Club Trustee.

                    From the
Closing Date until the Agreement Termination Date, the Club Trustee hereby
covenants that:

                    (a)          No
Conveyance. The Club Trustee agrees not to convey any Resort Interest (as
defined in the Club Trust Agreement) in the Club relating to a Timeshare Loan
unless the Buyer 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.

58

                    (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 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.

 

59

	
  

 	
  

 	
  

 
	
  

 	
 (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 Buyer an agreement in form and substance reasonably
satisfactory to the Buyer 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 13.1 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 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; 

 

60

	
  

 	
  

 	
  

 
	
  

 	
 (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 Buyer without the prior written consent of
 the Buyer.

 

                    (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.

ARTICLE XIV.

MISCELLANEOUS

          SECTION
14.1.     Notices.  

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

	
  

 	
  

 
	
  

 	
 If to the
 Seller:

 
	
  

 	
  

 
	
  

 	
 BBCV
 Receivables-Q 2010 LLC

 
	
  

 	
 4950
 Communication Avenue, Suite 900

 
	
  

 	
 Boca Raton,
 Florida 33431

 
	
  

 	
 Attention:
 Allan J. Herz, President and Assistant Treasurer

 
	
  

 	
 Fax: (561)
 443-8743

 
	
  

 	
  

 
	
  

 	
 with a copy
 to:

 
	
  

 	
  

 
	
  

 	
 Weinstock
 & Scavo, P.C.

 
	
  

 	
 3405
 Piedmont Road, N.E.

 
	
  

 	
 Suite 300

 
	
  

 	
 Atlanta,
 Georgia 30305

 
	
  

 	
 Attention:
 Mark I. Sanders, Esq.

 
	
  

 	
 Fax: (404)
 231-1618

 

61

	
  

 	
  

 
	
  

 	
 If to the
 Buyer:

 
	
  

 	
  

 
	
  

 	
 Quorum
 Federal Credit Union

 
	
  

 	
 2
 Manhattanville Road

 
	
  

 	
 Suite 401

 
	
  

 	
 Purchase, NY
 10577

 
	
  

 	
 Attention:
 Bruno Sementilli, President and CEO

 
	
  

 	
 Fax: (914)
 641-3777

 
	
  

 	
  

 
	
  

 	
 If to the
 Club Trustee:

 
	
  

 	
  

 
	
  

 	
 Vacation Trust, Inc.

 
	
  

 	
 4950 Communication Avenue, Suite 900

 
	
  

 	
 Boca Raton, Florida 33431

 
	
  

 	
 Attention: General Counsel’s Office

 
	
  

 	
 Fax: (561)
 912-7999

 
	
  

 	
  

 
	
  

 	
 If to the
 Custodian:

 
	
  

 	
  

 
	
  

 	
 U.S. Bank
 National Association

 
	
  

 	
 1133 Rankin
 Street, Suite 100

 
	
  

 	
 St. Paul,
 Minnesota 55116

 
	
  

 	
 Attention:
 Document Custody Services/Account Management

 
	
  

 	
 Fax: (651)
 695-6102

 
	
  

 	
  

 
	
  

 	
 If to the
 Paying Agent:

 
	
  

 	
  

 
	
  

 	
 U.S. Bank
 National Association

 
	
  

 	
 60
 Livingston Avenue

 
	
  

 	
 St. Paul,
 Minnesota 55107

 
	
  

 	
 Attention:
 Structured Finance/Quorum

 
	
  

 	
 Fax: (651)
 495-8090

 
	
  

 	
  

 
	
  

 	
 If to the
 Servicer:

 
	
  

 	
  

 
	
  

 	
 Bluegreen
 Corporation

 
	
  

 	
 4960
 Conference Way North, Suite 100

 
	
  

 	
 Boca Raton,
 Florida 33431

 
	
  

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

 
	
  

 	
 Fax: (561)
 912-8123

 

62

	
  

 	
  

 
	
  

 	
 with a copy
 to:

 
	
  

 	
  

 
	
  

 	
 Weinstock
 & Scavo, P.C.

 
	
  

 	
 3405
 Piedmont Road, N.E.

 
	
  

 	
 Suite 300

 
	
  

 	
 Atlanta,
 Georgia 30305

 
	
  

 	
 Attention:
 Mark I. Sanders, Esq.

 
	
  

 	
 Fax: (404)
 231-1618

 
	
  

 	
  

 
	
  

 	
 If to the
 Backup Servicer:

 
	
  

 	
  

 
	
  

 	
 Concord
 Servicing Corporation

 
	
  

 	
 4725 North
 Scottsdale Road

 
	
  

 	
 Suite 300

 
	
  

 	
 Scottsdale,
 Arizona 85251

 
	
  

 	
 Fax: (480)
 281-5910

 
	
  

 	
 Attention:
 Mary-Jeanne Fincher, Esq.

 

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

          SECTION
14.2.     No Proceedings. 

                    The
Servicer, the Custodian, the Club Trustee and the Backup Servicer each hereby
agrees that it shall not, directly or indirectly institute, or cause to be
instituted, against the Seller or the Assets any proceeding of the type
referred to in Sections 8.1(c) and (d) hereof, so long as there shall not have
elapsed one (1) year plus one (1) day after payment in full of the Timeshare
Loans.

          SECTION
14.3.     Entire Agreement; Term of Agreement;
Binding Effect; Assignability. 

                    This
Agreement and the other Transaction Documents represent the entire agreement
and understanding of the parties with respect to the subject matter hereof and
thereof. This Agreement shall create and constitute the continuing obligations
of the parties hereto in accordance with its terms, and shall continue in full
force and effect from the Closing Date through the Agreement Termination Date.
This Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and permitted assigns. Other than in
accordance with the terms of this Agreement, the Seller shall not Grant or
assign any of its rights and obligations hereunder or any interest under or
pursuant to this Agreement without the prior written consent of the Buyer.
Other than in accordance with the terms of this Agreement, the Buyer shall not
Grant or assign any of its rights or obligations hereunder or any interest
under or pursuant to this Agreement, including, without limitation, in and to
the Assets, without the prior written consent of the Seller. 

63

          SECTION
14.4     Fees, Expenses, Payments, Etc.     The
Seller agrees to pay on demand any and all documentary, stamp, transfer and
other taxes and governmental fees payable in connection with the execution,
delivery, filing and recording of any of the Transaction Documents or the other
documents and agreements to be delivered hereunder and thereunder or otherwise
in connection with the purchase of the Timeshare Loans, and agrees to save the
Buyer harmless from and against any liabilities with respect to or resulting
from any delay in paying or any omission to pay such taxes and fees.

                    (b)          Periodic
fees or other periodic amounts payable hereunder shall be calculated on the
basis of either three hundred sixty five (365) or three hundred sixty six (366)
(such number, the actual number of days in the year).

                    (c)          Seller
represents and warrants to Buyer that no consultant, advisor, broker, agent,
finder or intermediary has acted on its behalf in connection with the
negotiation of this Agreement or the consummation of the transactions
contemplated hereby such that any broker commission, finder’s fee or similar
payment is owed by the Seller to any such Person. Buyer represents and warrants
to Seller that no consultant, advisor, broker, agent, finder or intermediary
has acted on its behalf in connection with the negotiation of this Agreement or
the consummation of the transactions contemplated hereby such that any broker
commission, finder’s fee or similar payment is owed by the Buyer to any such
Person.

ARTICLE XV

THE PAYING AGENT

          SECTION
15.1     Certain Duties.

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

                    (b)          In
the absence of bad faith on its part, the Paying Agent 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 Paying Agent and
conforming to the requirements of this Agreement; but in the case of any such
certificates or opinions which by any provision hereof are specifically
required to be furnished to the Paying Agent, the Paying Agent shall be under a
duty to examine the same to determine whether or not they conform to the
requirements of this Agreement; provided, however, the Paying Agent shall not
be required to verify or recalculate the contents thereof.

64

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

	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 this Section 15.1(c) shall not be construed to limit the effect of
 Sections 15.1(a) and (b) hereof;

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 the Paying Agent shall not be liable with respect to any action taken
 or omitted to be taken by it in good faith in accordance with the written
 direction of the Servicer or the Buyer.

 

                    (d)          Whether
or not therein expressly so provided, every provision of this Agreement
relating to the conduct or affecting the liability of or affording protection
to the Paying Agent shall be subject to the provisions of this Section 15.1.

                    (e)          The
Paying Agent makes no representations or warranties with respect to the
Timeshare Loans or the validity or sufficiency of any assignment of the
Timeshare Loans to the Buyer.

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

          SECTION
15.2     Certain Matters Affecting the Paying Agent.

                    Subject
to the provisions of Section 15.1 hereof:

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

                    (b)          Any
request or direction of the Buyer, the Seller, or the Servicer mentioned herein
shall be in writing;

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

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

65

                    (e)          The
Paying Agent shall not be bound to make any investigation into the facts or
matters stated in any resolution, certificate, statement, instrument, opinion,
report, notice, request, consent, order, approval, bond or other paper
document; 

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

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

          SECTION
15.3     Paying Agent Not Liable for Timeshare Loans. 

                    (a)          The
Paying Agent makes no representations as to the validity or sufficiency of this
Agreement or any Transaction Document or of any Timeshare Loan.

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

          SECTION
15.4     Paying Agent’s Fees and Expenses.

                    On
each Distribution Date, the Paying Agent shall be entitled to the Paying Agent
Fee and reimbursement of out-of-pocket expenses incurred by it in connection
with its responsibilities hereunder in the priorities provided in Section
4.3(a) hereof.

66

          SECTION
15.5     Resignation or Removal of Paying Agent.

                    (a)          The
Paying Agent may at any time resign and be discharged with respect to its
performance as Paying Agent hereunder by giving 60 days’ written notice thereof
to the Servicer, the Seller and the Buyer. Upon receiving such notice of
resignation, the Seller shall promptly appoint a successor Paying Agent not
objected to by the Buyer within 30 days after prior written notice, by written
instrument, in quintuplicate, one counterpart of which instrument shall be
delivered to each of the Seller, the Servicer, the Buyer, the successor Paying
Agent and the predecessor Paying Agent. If no successor Paying Agent shall have
been so appointed and have accepted appointment within 60 days after the giving
of such notice of resignation, the resigning Paying Agent may petition any
court of competent jurisdiction for the appointment of a successor Paying
Agent. 

                    (b)          If
at any time the Paying Agent shall be legally unable to act, fails to perform
in any material respect its obligations under this Agreement, or shall be
adjudged as bankrupt or insolvent, or a receiver of the Paying Agent or of its
property shall be appointed, or any public officer shall take charge or control
of the Paying Agent or of its property or affairs for the purpose of
rehabilitation, conservation or liquidation, then the Buyer may direct the
Seller or Servicer to remove the Paying Agent. If it removes the Paying Agent
under the authority of the immediately preceding sentence, the Seller shall
promptly appoint a successor Paying Agent not objected to by the Buyer, within
30 days after prior written notice, by written instrument, in quintuplicate,
one counterpart of which instrument shall be delivered to each of the Seller,
the Servicer, the Buyer, the successor Paying Agent and the predecessor Paying
Agent. 

                    (c)          Any
resignation or removal of the Paying Agent and appointment of a successor
Paying Agent pursuant to any of the provisions of this Section 15.5 shall not
become effective until acceptance of appointment by the successor Paying Agent
as provided in Section 15.6 hereof.

          SECTION
15.6     Successor Paying Agent. 

                    (a)          Any
successor Paying Agent appointed as provided in Section 15.5 hereof shall
execute, acknowledge and deliver to each of the Servicer, the Seller, the Buyer
and to its predecessor Paying Agent an instrument accepting such appointment
hereunder, and thereupon the resignation or removal of the predecessor Paying
Agent shall become effective and such successor Paying Agent, without any
further act, deed or conveyance, shall become fully vested with all the rights,
powers, duties and obligations of its predecessor Paying Agent hereunder with
like effect as if originally named a Paying Agent. The predecessor Paying Agent
shall deliver or cause to be delivered to the successor Paying Agent or its
custodian any Transaction Documents and statements held by it or its custodian
hereunder; and the Servicer and the Seller and the predecessor Paying Agent
shall execute and deliver such instruments and do such other things as may
reasonably be required for the full and certain vesting and confirmation in the
successor Paying Agent of all such rights, powers, duties and obligations.

67

                    (b)          In
case of the appointment hereunder of a successor Paying Agent, the Seller, the
retiring Paying Agent and each successor Paying Agent shall execute and deliver
an Agreement supplemental hereto wherein each successor Paying Agent shall
accept such appointment and which shall contain such provisions as shall be
necessary or desirable to transfer and confirm to, and to vest in, each
successor Paying Agent all the rights, powers and duties of the retiring Paying
Agent; and upon the execution and delivery of such supplemental Agreement the
resignation or removal of the retiring Paying Agent shall become effective to
the extent provided therein and each such successor Paying Agent, without any
further act, deed or conveyance, shall become vested with all the rights,
powers and duties of the retiring Paying Agent; but, on request of the Seller
or any successor Paying Agent, such retiring Paying Agent shall duly assign,
transfer and deliver to such successor Paying Agent all property and money held
by such retiring Paying Agent hereunder.

                    (c)          Upon
request of any such successor Paying Agent, the Seller and Buyer shall execute
any and all instruments for more fully and certainly vesting in and confirming
to such successor Paying Agent all such rights, powers and trusts referred to
in the preceding paragraph.

          SECTION
15.7     Merger or Consolidation of Paying Agent.

                    Any
Person into which the Paying Agent may be merged or converted or with which it
may be consolidated, or any Person resulting from any merger, conversion or
consolidation to which the Paying Agent shall be a party, or any Person
succeeding to the corporate trust business of the Paying Agent, shall be the
successor of the Paying Agent hereunder, without the execution or filing of any
paper or any further act on the part of any of the parties hereto, anything
herein to the contrary notwithstanding.

[Signatures begin on next page.]

68

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

	
  

 	
  

 	
  

 
	
  

 	
 BBCV
 RECEIVABLES-Q 2010 LLC,

 
	
  

 	
 as Seller

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name: Allan
 J. Herz

 
	
  

 	
  

 	
 Title:
 President and Assistant Treasurer

 
	
  

 	
  

 	
  

 
	
  

 	
 QUORUM
 FEDERAL CREDIT UNION,

 
	
  

 	
 as Buyer 

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title:

 
	
  

 	
  

 	
  

 

	
  

 	
  

 	
  

 
	
  

 	
 VACATION
 TRUST, INC.,

 
	
  

 	
 as Club
 Trustee

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name: Tonya
 Wardak

 
	
  

 	
  

 	
 Title: Vice
 President, Treasurer and Secretary

 
	
  

 	
  

 	
  

 

	
  

 	
  

 	
  

 
	
  

 	
 U.S. BANK
 NATIONAL ASSOCIATION, 

 
	
  

 	
 as Custodian
 

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title:

 
	
  

 	
  

 	
  

 
	
  

 	
 U.S. BANK
 NATIONAL ASSOCIATION, 

 
	
  

 	
 as Paying
 Agent 

 
	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title:

 

[Signature Page to Loan Sale and Servicing Agreement]

	
  

 	
  

 	
  

 
	
  

 	
 BLUEGREEN
 CORPORATION,

 
	
  

 	
 as Servicer 

 
	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:
 Anthony M. Puleo

 
	
  

 	
  

 	
 Title:
 Senior Vice President, CFO & Treasurer

 
	
  

 	
  

 	
  

 
	
  

 	
 CONCORD
 SERVICING CORPORATION,

 
	
  

 	
 as Backup
 Servicer 

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:
 Mary-Jeanne Fincher

 
	
  

 	
  

 	
 Title:
   Vice President & General Counsel

 

[Signature Page to Loan Sale and Servicing Agreement]

SCHEDULE I

Representations and Warranties Regarding the
Timeshare Loans

          With
respect to each Timeshare Loan, unless otherwise stated, as of the related Sale
Date or Transfer Date applicable to such Timeshare Loan:

	
  

 	
  

 	
  

 
	
  

 	
 (a)

 	
 the Obligor is an Eligible Borrower;

 
	
  

 	
  

 	
  

 
	
  

 	
 (b)

 	
 the Obligor is personally liable on the Timeshare Loan;

 
	
  

 	
  

 	
  

 
	
  

 	
 (c)

 	
 the Timeshare Loan is not a Sampler Loan;

 
	
  

 	
  

 	
  

 
	
  

 	
 (d)

 	
 payments due under the Timeshare Loan are fully-amortizing and
 payable in level monthly installments; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (e)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (f)

 	
 the Obligor thereunder has made a down payment by cash, check, credit
 card or otherwise of at least ten percent (10%) of the original purchase
 price of the Timeshare Property (which cash down payment may, (i) in the case
 of an Upgrade, be represented in whole or in part by the down payment made
 and principal payments paid in respect of the related Original Club Loan,
 (ii) in the case of a Sampler Converted Loan, be represented in whole or in
 part by the principal payments and down payment made on the related Sampler
 Loan since its date of origination and (iii) in the case of an Upgrade or Sampler
 Conversion, be represented in whole or in part by the amount paid where the
 Obligor has paid in full at the point of sale for the original Timeshare
 Property or “Sampler Membership”, as applicable) and no part of such payment
 has been made or loaned to the Obligor by the Seller or an Affiliate thereof;

 
	
  

 	
  

 	
  

 
	
  

 	
 (g)

 	
 as of the related Cut-Off Date, no principal or interest due with
 respect to the Timeshare Loan is more than thirty (30) days delinquent;

 
	
  

 	
  

 	
  

 
	
  

 	
 (h)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

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

 

I-1

	
  

 	
  

 	
  

 
	
  

 	
 (j)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (k)

 	
 with respect to each Deeded Club Loan, the applicable Assignment of
 Mortgage and each related endorsement of the related Mortgage Note
 constitutes a duly executed, legal, valid, binding and enforceable assignment
 or endorsement, as the case may be, of such related Mortgage and related
 Mortgage Note, and all monies due or to become due thereunder, and all
 proceeds thereof;

 
	
  

 	
  

 	
  

 
	
  

 	
 (l)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (m)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (n)

 	
 if a Mortgage secures a Timeshare Loan, the title to the related
 Timeshare Property is insured (or a binding commitment, which may be a master
 commitment referencing one or more Mortgages, for title insurance, not
 subject to any conditions other than standard conditions applicable to all
 binding commitments, has been issued) under a mortgagee title insurance
 policy (which may consist of one master policy referencing one or more such
 Mortgages) issued by a title insurer qualified to do business in the
 jurisdiction where the related Timeshare Property is located in a form
 generally acceptable to prudent originators of similar mortgage loans,
 insuring BBCV or its predecessor and its successors and assigns, as to the
 first priority mortgage Lien of the related Mortgage in an amount equal to
 the original outstanding Loan Balance of such Timeshare Loan; and BBCV and
 its assignees is a named insured of such mortgagee’s title insurance policy;

 
	
  

 	
  

 	
  

 
	
  

 	
 (o)

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

 

I-2

	
  

 	
  

 	
  

 
	
  

 	
 (p)

 	
 the terms of each related Timeshare Loan Document have not been
 impaired, waived, altered or modified in any respect, except (x) by written
 instruments which are part of the related Timeshare Loan Documents or (y) in
 accordance with the Credit Policy applicable at the time of origination, the
 Collection Policy or the Servicing Standard (provided that no Timeshare Loan
 has been impaired, waived, altered, or modified in any respect more than
 once). No other instrument has been executed or agreed to which would effect
 any such impairment, waiver, alteration or modification; the Obligor has not
 been released from liability on or with respect to the Timeshare Loan, in
 whole or in part; if required by law or prudent originators of similar loans
 in the jurisdiction where the related Timeshare Property is located, all
 waivers, alterations and modifications have been filed and/or recorded in all
 places necessary to perfect, maintain and continue a valid first priority
 Lien of the related Mortgage, subject only to Permitted Liens;

 
	
  

 	
  

 	
  

 
	
  

 	
 (q)

 	
 the Timeshare Loan was originated by or on behalf of BBCV in the
 normal course of its business; the Timeshare Loan originated by or on behalf
 of BBCV was underwritten in accordance with its credit policy in effect at
 such time (or the credit policy of its Affiliates); and to Seller’s
 Knowledge, the origination, servicing and collection practices used by BBCV
 or its Affiliates with respect to the Timeshare Loan have been in all
 respects, legal, proper, prudent and customary;

 
	
  

 	
  

 	
  

 
	
  

 	
 (r)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (s)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (t)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (u)

 	
 no selection procedures were intentionally utilized by Seller in
 selecting the Timeshare Loan which Seller knew were materially adverse to the
 Buyer;

 

I-3

	
  

 	
  

 	
  

 
	
  

 	
 (v)

 	
 the Units related to the Timeshare Loan in the related Resort are
 Completed Units, free of all defects that could give rise to any claims by
 the related Obligors under home warranties or applicable laws or regulations,
 whether or not such claims would create valid offset rights under the law of
 the State in which the Resort is located; BBCV or developer has complied in
 all material respects with all obligations and duties incumbent upon the
 developers under the related timeshare declaration, as applicable, or similar
 applicable documents for the related Resort;

 
	
  

 	
  

 	
  

 
	
  

 	
 (w)

 	
 the total maximum remaining principal balance of all Timeshare Loans
 to any one Obligor does not exceed one hundred thousand dollars ($100,000) in
 the aggregate;

 
	
  

 	
  

 	
  

 
	
  

 	
 (x)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (y)

 	
 the Timeshare Loan relates to the Resorts commonly known as Bluegreen
 Wilderness Club at Big Cedar, located in Ridgedale, Missouri or Long Creek
 Ranch at Big Cedar, located in Ridgedale, Missouri;

 
	
  

 	
  

 	
  

 
	
  

 	
 (z)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (aa)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (bb)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (cc)

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

 

I-4

	
  

 	
  

 	
  

 
	
  

 	
 (dd)

 	
 the Timeshare Loan does not have an original term to maturity in
 excess of one hundred twenty (120) months;

 
	
  

 	
  

 	
  

 
	
  

 	
 (ee)

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

 
	
  

 	
  

 	
  

 
	
  

 	
 (ff)

 	
 all of the related Timeshare Loan Servicing Files for such Timeshare Loan
 have on or prior to, as applicable, the related Sale Date or the related
 Transfer Date been obtained by the Servicer; and all of the related Timeshare
 Loan Files are, in the case of a Timeshare Loan, in the possession of the
 Custodian on or prior to the related Sale Date, or, in the case of a Qualified
 Substitute Timeshare Loan, shall be in the possession of the Custodian within
 five (5) Business Days of the related Transfer Date; provided, however, that,
 (1) with respect to fifty percent (50%) of the Timeshare Loan Files relating
 to the Aggregate Sale Date Loan Pool, the related (a) original recorded
 Mortgage, (ii) original recorded Assignment of Mortgage (which may consist of
 one master assignment referencing one or more of such assignments with copies
 provided separately by the Servicer) and (iii) the final original lender’s
 title insurance policy (which may consist of one master policy referencing
 one or more such mortgages), if not sooner delivered, shall be delivered to
 the Custodian not later than four (4) months from the related Sale Date or
 Transfer Date, (2) with respect to ninety percent (90%) of the Timeshare Loan
 Files relating to the Aggregate Sale Date Loan Pool, the related (a) original
 recorded Mortgage, (ii) original recorded Assignment of Mortgage (which may
 consist of one master assignment referencing one or more of such assignments
 with copies provided separately by the Servicer) and (iii) the final original
 lender’s title insurance policy (which may consist of one master policy referencing
 one or more such mortgages), if not sooner delivered, shall be delivered to
 the Custodian not later than six (6) months from the related Sale Date or
 Transfer Date, and (3) with respect to one hundred percent (100%) of the
 Timeshare Loan Files relating to the Aggregate Sale Date Loan Pool, the
 related (a) original recorded Mortgage, (ii) original recorded Assignment of
 Mortgage (which may consist of one master assignment referencing one or more
 of such assignments with copies provided separately by the Servicer) and
 (iii) the final original lender’s title insurance policy (which may consist
 of one master policy referencing one or more such mortgages), if not sooner
 delivered, shall be delivered to the Custodian not later than twelve (12)
 months from the related Sale Date or Transfer Date;

 
	
  

 	
  

 	
  

 
	
  

 	
 (gg)

 	
 the Timeshare Loan is not subject to an annual percentage rate of
 interest (APR) reflected in the related truth-in-lending disclosure statement
 or similar disclosure form greater than eighteen percent (18%); 

 
	
  

 	
  

 	
  

 
	
  

 	
 (hh)

 	
 the percentage of Timeshare Loans where the Obligor is not a resident
 of the United States, Canada, Puerto Rico, U.S. military bases or U.S.
 Territories (“Non-United States Obligors”) does not exceed two percent (2%)
 of the Aggregate Loan Balance of Timeshare Loans in the applicable Sale Date
 Loan Pool;

 

I-5

	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 the minimum FICO Score for each Obligor with a FICO Score under the
 related Timeshare Loan must be at least 575;

 
	
  

 	
  

 	
  

 
	
  

 	
 (jj)

 	
 the Mortgage Note related to the Timeshare Loan may be prepaid in
 full without penalty; and 

 
	
  

 	
  

 	
  

 
	
  

 	
 (kk)

 	
 the related Obligor is required pursuant to the related Owner
 Beneficiary Agreement and the Club Bylaws to pay Common Assessment Fees (as
 defined in the Club Trust Agreement) to the Club Association

 

I-6

SCHEDULE II

Pending Litigation and Other Proceedings

	
  

 	
  

 
	
  

 	
  

 
	
 •

 	
 The Office of the Attorney General of the State of Florida (the “AG”)
 has made an inquiry to Bluegreen Corporation (“Bluegreen”) for input on
 consumer complaints that the AG has accumulated over the period from 2004 to
 present. The AG’s staff has provided these complaints to Bluegreen and
 indicated that they do not wish to pursue any enforcement action; rather,
 they want to ensure that Bluegreen either has previously addressed these
 complaints, or will resolve the unaddressed complaints directly with the
 consumers. Bluegreen is currently reviewing the complaints and believes that
 most have already been addressed in the ordinary course of business and any
 remaining consumer complaints will be addressed and resolved in the same
 manner. Bluegreen is fully cooperating with the AG to amicably and timely
 resolve these complaints.

 

II-1

Exhibit A

COLLECTION POLICY

Collection Policy

                    Collection
efforts and delinquency information concerning the timeshare loans are managed
by Bluegreen Corporation (the “Servicer”) and are handled by a staff of
experienced collectors, assisted by a mortgage collection computer system. The
Servicer’s collectors are incentivized through a performance-based compensation
program. Technological capabilities include integrated software modules, and
automated lock box, credit card and clearing house processing. The Servicer’s
aim of minimizing account delinquencies by promoting satisfactory customer
relations is also reflected in its collection policy. The Servicer’s collection
policy is designed to maximize cash flow and assist each obligor with the
management of his or her account.

                    With
respect to the Bluegreen Vacation Club loans, unless circumstances otherwise
dictate, collection efforts are generally made by mail and telephone.
Collection efforts may commence by the Servicer when an account is as few as 10
days past due via telephone contact by the Servicer. At 30 days delinquent, a
letter is sent to the obligor, (if a U.S. resident), advising such obligor that
if the loan is not brought current, the delinquency will be reported to the
credit reporting agencies. At 60 days delinquent, a lock-out letter is sent to
the Bluegreen Vacation Club obligor by regular and certified or registered mail
advising such obligor that such obligor cannot make any future reservations for
lodging at a Bluegreen Vacation Club resort. If the delinquency continues, at
90 days delinquent, a “Notice of Intent to Cancel Membership” is mailed by
regular and certified or registered mail. This informs the obligor that unless
the delinquency is cured within 30 days from the date of such notice, the
obligor’s membership in the Bluegreen Vacation Club will be terminated. If the
delinquency is not cured, a termination letter is sent by regular and certified
or registered mail, typically at approximately 120 days delinquent. At such
time, the obligor’s beneficial interest in the timeshare property is terminated
and can be resold to a new purchaser. 

                    In
certain limited circumstances, obligors who are approximately 120 days
delinquent are sent a default “save” notice inviting the obligor to call the
Servicer to establish a payment arrangement. In order to determine whether a
“save” notice will be sent to an obligor, the Servicer reviews and bases its
decision on the account history and collection notes. If the obligor does not
enter into a payment arrangement within approximately 30 days of delivery of
the default “save” notice, then the obligor’s beneficial interest in the
timeshare property is terminated as herein described. The default “save” notice
is sent only after the “Notice of Intent” letter has been sent to the obligor.
The default “save” notice is typically sent when the obligor has made payments
that have been reversed for any reason. This is most often due to “insufficient
funds”, but could include other reasons. The notice is also generally sent if
the obligor has failed to make promised payments on a payment plan arranged
with the collection staff. The decision to send the notice is based on the
Collection Manager’s analysis of the facts and circumstances surrounding the
reversed payment or broken promise. As previously stated, this information is
taken from the collection notes pertaining to the conversations between the
obligor and the applicable collector. If, in the professional judgment of the
Collection Manager, sending the notice can assist the obligor in “saving”
his/her ownership interest and “curing” the delinquency, it will be sent. If
the obligor fails to respond to this letter within the given time frame, the
loan will be defaulted and the obligor’s owner beneficiary rights terminated.

Exhibit A-1

                    The
Servicer will refrain from modifying, waiving or amending the terms of any
timeshare loan; provided, however, the Servicer may modify, waive or amend a timeshare
loan for which a default on such timeshare loan has occurred or is imminent and
such modification, amendment or waiver will not (i) materially alter the
interest rate on or the principal balance of such timeshare loan, (ii) shorten
the final maturity of, lengthen the timing of payments of either principal or
interest, or any other terms of, such timeshare loan in any manner which would
have a material adverse affect on the noteholders in any particular facility or
transaction, if applicable, (iii) adversely affect the timeshare property
underlying such timeshare loan or (iv) reduce materially the likelihood that
payments of interest and principal on such timeshare loan shall be made when
due; provided, further, the Servicer may, in accordance with applicable
transaction documents, if any, grant a single extension of the final maturity
of a timeshare loan if the Servicer, in its reasonable discretion, determines
that (A) such timeshare loan is in default or a default on such timeshare loan
is likely to occur in the foreseeable future and (B) the value of such
timeshare loan will be enhanced by such extension; provided, further, the
Servicer shall not be permitted to modify, waive or amend the terms of any
timeshare loan if the sum of the loan balance of such timeshare loan and the
loan balances of all other timeshare loans for which the Servicer has modified,
waived or amended the terms thereof exceeds the allowed percentage for any
facility or other transaction (if applicable).

                    The
decision to offer an extension to an obligor must be approved by the Collection
Manager and the Vice President, Mortgage Operations who consider all the facts
and circumstances regarding the obligor’s situation, including a detailed
review of the collection notes pertaining to the conversations between the
obligor and the applicable collector. If, in the professional judgment of the
Collection Manager and the Vice President, Mortgage Operations, granting an
extension can assist the obligor in “saving” his/her ownership interest and
“curing” the delinquency, it may be granted pursuant to the related transaction
documents (if applicable). The loan must be at least sixty days delinquent and
is typically offered due to some type of hardship with the obligor. If the loan
is sixty days past due the obligor must make at least one payment, any loan
ninety days or greater requires the obligor to make two payments before the
extension can be executed. Extensions are not normally granted to a loan in
excess of 150 days past due. An extension agreement explaining the terms is
sent in a prepaid overnight package to the obligor. The agreement states that
the Servicer will accept the payment(s) made by the obligor and advance the due
date to bring the loan current and modify the maturity date by the number of
payments extended. The agreement must be signed and witnessed and sent back to
the Mortgage Collection Department. All other terms and conditions in the note
shall be and remain in full force and effect. Other modifications, waivers or
amendments may be provided after a natural disaster or act of terror (sometimes
referred to as “force majeure loans”) as allowed under the applicable
transaction documents. 

Exhibit A-2

          The
foregoing procedures however, may be revised from time to time as the need
arises with appropriate consent for material changes.

Exhibit A-3

Exhibit B

LOST NOTE AFFIDAVIT

STATE OF ___________

COUNTY OF _________

          ______________
(“Affiant”), on behalf of and as _________________ of __________________________,
a ___________ (the “Seller”), being duly sworn, deposes and says:

          1.          This
Lost Note Affidavit is being delivered by the Affiant pursuant to Section
10.2(h) of the Loan Sale and Servicing Agreement (the “Agreement”),
dated as of _____________, 2010 by and between the Seller, Quorum Federal
Credit Union, a federally chartered credit union, as the Buyer, and the other
parties thereto. Unless otherwise defined herein, capitalized terms have the
meanings ascribed to such terms in the Agreement.

          2.
          That
____________________________________________ has issued an [Obligor Note][Owner
Beneficiary Agreement] evidencing a Timeshare Loan dated __________________ in
the principal amount of $_________________ [(the “Original Note”)] [(the
“Original Agreement”)] to ______________________].

          3.          The
[Original Note][Owner Beneficiary Agreement] has been lost, destroyed, or
stolen so that it cannot be found or produced, and the Seller has not endorsed,
assigned, sold, pledged, hypothecated, negotiated or otherwise transferred the
[Original Note][Owner Beneficiary Agreement] or an interest therein.

          4.
          That the Seller has
made a diligent effort to find the [Original Note][Original Agreement].

          5.
          It is understood by
the Seller that if the [Original Note][Original Agreement] is found, that it
will surrender said [Original Note][Original Agreement] to the Custodian or its
permitted successors and assigns in exchange for this Lost Note Affidavit.

	
  

 	
  

 
	
  

 	
 ___________________________________

 
	
  

 	
 Printed Name: _______________________

 

          The
foregoing affidavit was sworn to and subscribed before me this _____ day of
_____________, _______, by ______________, as _______________________ of ____________________________________,
who is personally known to me or who has produced ____________________ as
identification and who did take an oath.

	
  

 	
  

 
	
  

 	
 ___________________________________

 
	
 (AFFIX NOTARIAL SEAL)

 	
 Notary Public, State of
 __________

 
	
  

 	
 (Name)

 
	
 Commission Number:
 _________________

 	
 My Commission Expires:

 

Exhibit B

Exhibit C

RESERVED

Exhibit C

Exhibit D

CREDIT POLICY

Credit Policy

                    Customer
financing on sales of timeshare interests requires (a) that the obligor (which
may include one or more persons) has made a down payment by cash, check, credit
card or otherwise of at least 10% (or 20% in limited circumstances) of the
actual purchase price (including closing costs) of the timeshare property
(which down payment may, (i) in the case of upgrade club loans, be represented
in whole or in part by the down payment made and principal payments paid since
the initial date of origination in respect of the related original club loan,
(ii) in the case of a sampler converted loan, be represented in whole or in
part by the down payment made and principal payments paid since the date of
origination in respect of the related sampler loan, and (iii) in the case of an
upgrade or sampler conversion, be represented in whole or in part by the amount
paid where the obligor has paid in full at the point of sale for the original
timeshare property or sampler membership, as applicable, (b) an executed
mortgage note and mortgage or, in the case of sales in the La Cabana Resort, an
owner beneficiary agreement, and (c) other closing documents between the
originator and the purchaser. Bluegreen Corporation and its affiliates, as
applicable, (together the “Company”) encourages purchasers to make increased
down payments or opt for a loan term of 5 or 7 years by offering a lower
interest rate. In addition, purchasers who do not elect to participate in the
Company’s pre-authorized checking payment plan are charged interest at a rate
which is one percent greater than the otherwise prevailing rate, where allowed
by applicable laws and regulations. 

                    Prior
to December 15, 2008, the Company’s customer financing was not subject to any
significant loan underwriting criteria and no FICO® score was obtained prior to
extending credit. The Company implemented a formal FICO® score-based credit
underwriting program effective December 15, 2008. Following implementation, the
Company no longer provided financing to customers with FICO® scores below 500
and new customers with FICO® scores between 500 and 599 were required to make a
minimum cash down payment of 20%. Effective January 1, 2010, the Company
further increased its credit underwriting standards and no longer provides
financing to new customers with FICO® scores below 575 and new customers with
FICO® scores between 575 and 599 are required to make a minimum cash down
payment of 20%. 

Exhibit D

Exhibit E

SALE NOTICE

Date: __________         

This
Sale Notice is pursuant to the Loan Sale and Servicing Agreement dated as of
______________________, 20__, by and among [insert legal name of seller], as
the Seller, Quorum Federal Credit Union, as the Buyer, Bluegreen Corporation,
as Servicer, Vacation Trust, Inc., as the Club Trustee, Concord Servicing
Corporation, as Back-Up Servicer and U.S. Bank National Association, as the
Custodian and Paying Agent (“Agreement”). Capitalized terms not otherwise
defined herein shall have the meaning ascribed thereto in the Agreement. The
Seller proposes to sell to the Buyer the Timeshare Loans described below: 

	
  

 	
  

 
	
  

 	
 Proposed Sale Date:     _________________

 
	
  

 	
  

 
	
  

 	
 Aggregate
 principal balance of Sale Date Loan Pool:
       $______________

 
	
  

 	
  

 
	
  

 	
 Number of Timeshare Loans
 in Sale Date Loan Pool:
                    ________

 
	
  

 	
  

 
	
  

 	
 Range of balances of
 Timeshare Loans: $___________   to $____________

 
	
  

 	
  

 
	
  

 	
 Aggregate balance, shown
 as a percentage, of Timeshare Loans in the Sale Date Loan Pool to, without
 duplication, non-U.S. domiciled Obligors, or do not have a FICO Score or a
 FICO Score below 600:____%

 
	
  

 	
  

 
	
  

 	
 Range of seasoning of
 Timeshare Loans: _____________ months to ___________ months

 
	
  

 	
  

 
	
  

 	
 Aggregate
 balance, shown as a percentage, of Timeshare Loans in the Sale Date Loan Pool
 secured by a right-to-use Timeshare Property with a finite use to Timeshare
 Loans in the Sale Date Loan Pool: ____________%

 
	
  

 	
  

 
	
  

 	
 Sale Date Loan Pool
 Number: ________________

 

An
electronic file detailing each Timeshare Loan is hereby delivered to the Buyer
with this Sale Notice.

Unless
a Buyer’s purchase confirmation is received by the Seller before 12 pm one (1)
business day prior to the Sale Date, this offer of sale shall expire; provided,
however, that during the Commitment Purchase Period, the Buyer, pursuant to
Section 2.1(b) of the Agreement, shall deliver the Buyer Commitment Purchase
Confirmation to the Seller by such date and time.

	
  

 	
  

 
	
  

 	
 ___________________________,
 as Seller

 
	
  

 	
  

 
	
  

 	
 By:
 _______________________________

 
	
  

 	
 Name:
 _____________________________

 
	
  

 	
 Title:
 ______________________________

 
	
  

 	
 Address:
 ___________________________ 

 
	
  

 	
 Attention:
 __________________________ 

 
	
  

 	
 Telephone:
 _________________________ 

 
	
  

 	
 Facsimile:
 __________________________ 

 

Exhibit E

Exhibit F1

BUYER COMMITMENT PURCHASE
CONFIRMATION

Date: _______________

The Buyer agrees to purchase Sale Date Timeshare Loan Pool Number
__________________ on the terms and conditions set forth in the Loan Sale and
Servicing Agreement dated as of _____________________, 20__ by and among [insert
legal name of seller], as the Seller, Quorum Federal Credit Union, as the
Buyer, Bluegreen Corporation, as the Servicer, Concord Servicing Corporation,
as the Back-Up Servicer and the other parties thereto (the “Agreement”) as
supplemented below:

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 A.

 	
 Aggregate principal balance of the Sale Date Loan Pool: $___________ 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 B.

 	
 Buyer’s Purchase Price Percentage: ________%

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 C.

 	
 Initial Purchase Price Installment: $___________ [insert amount
 equal to the product of item A and item B above, less item F below]

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 D.

 	
 Program Fee Rate: ___% per annum during the first six (6) months of
 the Commitment Purchase Period, and thereafter at a per annum rate no greater
 than the Maximum Program Fee Rate for the related Maximum Program Fee Rate
 Period.

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 E.

 	
 Reserved

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 F.

 	
 Loan Purchase Fee: $______ [insert amount equal to the product of
 (i) [     ]% and (ii) the outstanding principal loan balance of the related Sale
 Date Loan Pool]

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 G.

 	
 Timeshare Portfolio Performance Event triggers:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 a.

 	
 Delinquency Level: ___________% 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 b.

 	
 Default Level: ___________%

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 c.

 	
 Cumulative Default Level (see Table 1 attached hereto)

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 H.

 	
 The Initial Purchase Price Installment has been calculated as
 follows: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 The product of the aggregate principal balance of the Sale Date Loan
 Pool and Buyer’s Purchase Price Percentage: $____________

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Less

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 The product of the aggregate principal balance of the Sale Date Loan
 Pool and the Loan Purchase Fee: $____________

 

Exhibit F1-1

The electronic file detailing each Timeshare Loan is hereby delivered
to the Seller with this purchase confirmation.

This Buyer Commitment Purchase Confirmation is provided under the
provisions of Section 2.1(b) of the Agreement. Capitalized terms not otherwise
defined herein shall have the meaning ascribed thereto in the Agreement.

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 QUORUM
 FEDERAL CREDIT UNION, as Buyer

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: Bruno
 Sementilli 

 	
  

 
	
  

 	
  

 	
 Title:
   President

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Address:

 	
 2
 Manhattanville Road

 	
  

 
	
  

 	
  

 	
  

 	
 Suite 401

 	
  

 
	
  

 	
  

 	
  

 	
 Purchase, NY
 10577

 	
  

 
	
  

 	
  

 	
 Attention:

 	
 President/CEO

 	
  

 
	
  

 	
  

 	
 Telephone:

 	
 914-641-3739

 	
  

 
	
  

 	
  

 	
 Facsimile:

 	
 914-641-3777

 	
  

 

[insert
legal name of seller], as Seller

	
  

 	
  

 	
  

 	
  

 
	
 By:

 	
  

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
 Name:

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Title:

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 

	
  

 	
  

 	
  

 
	
 Address:

 	
  

 	
  

 
	
  

 	

 

 	
  

 

	
  

 	
  

 	
  

 
	
 Attention:

 	
  

 	
  

 
	
  

 	

 

 	
  

 

	
  

 	
  

 	
  

 
	
 Telephone:

 	
  

 	
  

 
	
  

 	

 

 	
  

 

	
  

 	
  

 	
  

 
	
 Facsimile:

 	
  

 	
  

 
	
  

 	

 

 	
  

 

Exhibit F1-2

Table 1 to Buyer
Commitment Purchase Confirmation

Cumulative Default Levels

[See Attached]

Exhibit F1-3

Exhibit F2

BUYER PURCHASE CONFIRMATION

Date: _____________

The Buyer agrees to purchase Sale Date Timeshare Loan Pool Number
__________________ on the terms and conditions set forth in the Loan Sale and
Servicing Agreement dated as of _____________________, 20__ by and among [insert
legal name of seller], as the Seller, Quorum Federal Credit Union, as the
Buyer, Bluegreen Corporation, as the Servicer, Concord Servicing Corporation,
as the Back-Up Servicer and the other parties thereto (the “Agreement”) as
supplemented below:

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 A.

 	
 Aggregate principal balance of the Sale Date Loan Pool: $___________ 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 B.

 	
 Buyer’s Purchase Price Percentage: _________%

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 C.

 	
 Initial Purchase Price Installment: $___________ [insert amount
 equal to the product of item A and item B above, less item F below]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 D.

 	
 Program Fee Rate: ______________%

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 E.

 	
 Reserved

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 F.

 	
 Loan Purchase Fee: $________ [insert amount equal to the product
 of (i) [   ]% and (ii) the outstanding principal loan balance of the related
 Sale Date Loan Pool]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 G.

 	
 Timeshare Portfolio Performance Event triggers:

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 a.

 	
 Delinquency Level: ___________% 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 b.

 	
 Default Level: ___________%

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 c.

 	
 Cumulative Default Level (see Table 1 attached hereto)

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 H.

 	
 The Initial Purchase Price Installment has been calculated as
 follows: 

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (i)

 	
 The product of the aggregate principal balance of the Sale Date Loan
 Pool and Buyer’s Purchase Price Percentage: $____________

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Less

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (ii)

 	
 The product of the aggregate principal balance of the Sale Date Loan
 Pool and the Loan Purchase Fee: $____________

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 The electronic file detailing each Timeshare Loan is hereby delivered
 to the Seller with this purchase confirmation adjusted by deleting all
 Timeshare Loans rejected by the Buyer.

 

Exhibit F2-1

The Buyer has rejected the following loans for the undernoted reasons:

This Buyer Purchase Confirmation is provided under the provisions of
Section 2.1(c) of the Agreement and unless the Buyer has received the
undernoted notice rejecting this confirmation by 3 pm (New York City Time) on
the business day prior to the sale date, the transaction shall close on the
Sale Date. Capitalized terms not otherwise defined herein shall have the
meaning ascribed thereto in the Agreement.

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 QUORUM
 FEDERAL CREDIT UNION, as Buyer

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: Bruno
 Sementilli 

 	
  

 
	
  

 	
  

 	
 Title:
   President

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Address:

 	
 2
 Manhattanville Road

 	
  

 
	
  

 	
  

 	
  

 	
 Suite 401

 	
  

 
	
  

 	
  

 	
  

 	
 Purchase, NY
 10577

 	
  

 
	
  

 	
  

 	
 Attention:

 	
 President/CEO

 	
  

 
	
  

 	
  

 	
 Telephone:

 	
 914-641-3739

 	
  

 
	
  

 	
  

 	
 Facsimile:

 	
 914-641-3777

 	
  

 

PURCHASE CONFIRMATION REJECTED THIS ____ DAY OF _________________.

[insert
legal name of seller], as Seller

	
  

 	
  

 	
  

 	
  

 
	
 By:

 	
  

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
  

 	
 Name:

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Title:

 	
  

 	
  

 
	
  

 	
  

 	

 

 	
  

 

	
  

 	
  

 	
  

 
	
 Address:

 	
  

 	
  

 
	
  

 	

 

 	
  

 

	
  

 	
  

 	
  

 
	
 Attention:

 	
  

 	
  

 
	
  

 	

 

 	
  

 

	
  

 	
  

 	
  

 
	
 Telephone:

 	
  

 	
  

 
	
  

 	

 

 	
  

 

	
  

 	
  

 	
  

 
	
 Facsimile:

 	
  

 	
  

 
	
  

 	

 

 	
  

 

Exhibit F2-2

Table 1 to Buyer
Purchase Confirmation

Cumulative Default Levels

[See Attached]

Exhibit F2-3

Exhibit G

MONTHLY SERVICER REPORT

[See Attached]

Exhibit G

Exhibit H

FORM OF SERVICER OFFICER’S CERTIFICATE

SERVICER OFFICER’S CERTIFICATE

                    The
undersigned, an authorized representative of Bluegreen Corporation (the “Servicer”), based on the information
available on the date of this Certificate, does hereby certify as follows:

                    1.          I
am an authorized representative of the Servicer who has been authorized to
issue this Officer’s Certificate on behalf of the Servicer.

	
  

 	
  

 	
  

 
	
  

 	
 2.

 	
 I have reviewed the data contained in the Monthly Servicer Report for
 the Due Period ended ______, _____ and the computations reflected in the
 Monthly Servicer Report attached hereto as Schedule A are true,
 correct and complete.

 

                    All
capitalized terms used herein but not defined herein shall have the meaning
ascribed to them in the Agreement.

	
  

 	
  

 	
  

 
	
  

 	
 Bluegreen
 Corporation 

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title:
 Authorized Representative

 
	
  

 	
  

 	
  

 
	
  

 	
 Date:

 	
  

 

Exhibit H

Exhibit I

RECORD LAYOUT FOR DATA TAPES

[See Attached]

Exhibit I

Exhibit J

RESERVED

Exhibit J

Exhibit
K

LOCAL COUNSEL OPINIONS

FOR RESORTS’ JURISDICTIONS

	
  

 	
  

 	
  

 
	
 STATE/JURISDICTION

 	
  

 	
 RESORT

 
	

 

 	

 

 	

 

 
	
 Missouri

 	
  

 	
 Big
 Cedar Wilderness Club Condominium

 
	
  

 
	
  

 	
  

 	
 Bluegreen
 Wilderness Club at Long Creek Ranch, a 

 Condominium

 

Exhibit K-1

Exhibit L

WAIVER LETTER

Date:

U.S. Bank
National Association, as Custodian of Quorum Federal Credit Union

1133 Rankin Street, Suite 100

St. Paul, Minnesota 55116

Quorum Federal
Credit Union

2 Manhattanville Road, Suite 104

Purchase, New York 10577

BBCV
Receivables-Q 2010 LLC,

4950 Communication Avenue, Suite 900

Boca Raton, Florida 33431

	
  

 	
  

 
	
 Attention:

 	
 Document
 Custody Services 

 
	
  

 	
 Quorum
 Federal Credit Union

 

          In
accordance with Section 6.3 of that certain Loan Sale and Servicing
Agreement (the “Loan Sale Agreement”),
dated as of [____________, 2010], by and among Quorum Federal Credit Union, as
Buyer, BBCV Receivables-Q 2010 LLC, as Seller, Bluegreen Corporation, as
Servicer, Vacation Trust, Inc. as Club Trustee, Concord Servicing Corporation,
as Backup Servicer, and U.S. Bank National Association, as Custodian, the
undersigned hereby irrevocably waives its option to repurchase and/or
substitute any Defaulted Timeshare Loan listed on Exhibit A attached hereto. 

          Capitalized
terms used herein but not defined shall have the meanings ascribed to them in
the Loan Sale Agreement.

          IN
WITNESS WHEREOF, the undersigned has caused its name to be signed
hereby by its duly authorized officer, as of the day and year written above.

	
  

 	
  

 	
  

 
	
  

 	
 BLUEGREEN/BIG
 CEDAR VACATIONS, LLC

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 

	
  

 	
  

 	
  

 
	
  

 	
 Name:

 	
  

 
	
  

 	
  

 	

 

 

	
  

 	
  

 	
  

 
	
  

 	
 Title:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
  

 

Exhibit L

Exhibit M

RESERVED

Exhibit M

Exhibit N

CLUB TRUST AGREEMENT

Exhibit N

Exhibit O

ACH FORM

BLUEGREEN CORPORATION

Authorization to Start ACH Payment Processing

NOTE:
In the case of an equity trade, pre-authorized withdrawal (PAC) will continue
on existing loan until new loan is active. Any
payment received on the existing loan after the closing date of the new loan
will be applied to the principal of the new loan.

INSTRUCTIONS: 

	
  

 	
  

 
	
 1.

 	
 Complete authorization. Name and address of bank must be completed below. *

 
	
  

 
	
 2.

 	
 Attach a payer’s blank check marked “VOID” 

 

	
  

 
	
  

 
	
  

 
	
 PLEASE TAPE A VOID CHECK TO THIS AREA 

 (DO NOT USE STAPLES)

 
	
  

 
	
 Bank Routing No.
 _____/_____/_____/_____/_____/_____/_____/_____/_____

 
	
  

 
	
 Bank Account No.
 _________________________________________________

 
	
  

 

	
  

 	
  

 
	
 CONTRACT
 NO.

 	
                AUTHORIZATION

 
	

 

 	

 

 
	
 Name of Depositor

 	
 (PRlNT AS SHOWN ON BANK
 RECORDS) 

 

	
  

 
	

 

 
	
 To
 the Bank Specified Below: I authorize you to pay checks or electronic or
 other orders (“Withdrawals”) drawn or initiated by
 __________________________________________ or its designee and payable to it
 or its designee and to charge the same to my account with you which is
 identified below. This authorization will remain in effect until revoked by
 me in writing. Until you actually receive notice of such revocation, I agree
 that you shall be fully protected in honoring any such Withdrawal. I agree
 that your treatment of each Withdrawal, and your rights in respect to it,
 shall be the same as if it were signed or initiated personally by me. 

 

	
  

 
	
 X

 
	

 

 
	
 Signature of depositor(s)
 shown on bank records for account to which this authorization is applicable 

 

	
  

 	
  

 
	
Name and Address of bank (or branch) 

 where account is maintained. Include

 zip code.

 	
  

 

Exhibit O

Exhibit P

QUORUM CLOSED DATES

Quorum Federal Credit Union

Remaining 2010 Closed Days 

2011 Closed Days

	
  

 	
  

 
	
 2010 Closed Days

 	
  

 
	
  

 	
  

 
	
 Thanksgiving Day

 	
 Thursday, November 25, 2010 

 
	
  

 	
 Friday, November 26, 2010 

 
	
  

 	
  

 
	
 Christmas Eve

 	
 Friday, December 24, 2010

 
	
  

 	
  

 
	
 New Year’s Day

 	
 Friday, December 31, 2010

 
	
  

 	
  

 
	
 2011 Closed Days

 	
  

 
	
  

 	
  

 
	
 Memorial Day

 	
 Friday, May 27, 2011 

 
	
  

 	
 Monday, May 30, 2011

 
	
  

 	
  

 
	
 Independence Day

 	
 Friday, July 1, 2011 

 
	
  

 	
 Monday, July 4, 2011 

 
	
  

 	
  

 
	
 Labor Day

 	
 Friday, September 2, 2011 

 
	
  

 	
 Monday, September 5, 2011 

 
	
  

 	
  

 
	
 Thanksgiving Day

 	
 Thursday, November 24, 2011 

 
	
  

 	
 Friday, November 25, 2011 

 
	
  

 	
  

 
	
 Christmas Day

 	
 Monday, December 26, 2011

 

Exhibit P

Exhibit Q

RESERVED

Exhibit Q-1

Exhibit R

MONTHLY BUYER NOTICE

Date: ___________

Subject to the terms and conditions of the Loan Sale and Servicing
Agreement (the “Agreement”) dated as of _____________________, 20__ by and
among [insert legal name of seller], as the Seller, Quorum Federal
Credit Union, as the Buyer, Bluegreen Corporation, as the Servicer, Concord
Servicing Corporation, as the Back-Up Servicer, and the other parties thereto,
the Buyer is willing to purchase timeshare loans during the calendar month
immediately following the calendar month set forth above, which meet the
following criteria:

	
  

 	
  

 	
  

 
	
  

 	
 A.

 	
 Aggregate
 principal balance of the Sale Date Loan Pool: $___________ 

 
	
  

 	
  

 	
  

 
	
  

 	
 B.

 	
 Buyer’s
 Purchase Price Percentage: _________%

 
	
  

 	
  

 	
  

 
	
  

 	
 C.

 	
 Initial Purchase Price Installment: $___________ [insert amount
 equal to the product of item A and item B above, less item E below]

 
	
  

 	
  

 	
  

 
	
  

 	
 D.

 	
 Program Fee
 Rate: ______________%

 
	
  

 	
  

 	
  

 
	
  

 	
 E.

 	
 Loan Purchase Fee: $________ [insert amount equal to the product
 of (i) [ ]% and (ii) the outstanding principal loan balance of the related
 Sale Date Loan Pool]

 
	
  

 	
  

 	
  

 
	
  

 	
 F.

 	
 Timeshare
 Portfolio Performance Event triggers:

 

	
  

 	
  

 	
  

 
	
  

 	
 a.

 	
 Delinquency
 Level: ___________% 

 
	
  

 	
  

 	
  

 
	
  

 	
 b.

 	
 Default
 Level: ___________%

 
	
  

 	
  

 	
  

 
	
  

 	
 c.

 	
 Cumulative
 Default Level (see Table 1 attached hereto)

 

Capitalized
terms not otherwise defined herein shall have the meaning ascribed thereto in the
Agreement.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 QUORUM
 FEDERAL CREDIT UNION, as Buyer

 
	
  

 	
  

 
	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:  Bruno
 Sementilli 

 
	
  

 	
  

 	
 Title:    President

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Address:

 	
 2
 Manhattanville Road

 
	
  

 	
  

 	
  

 	
 Suite 401

 
	
  

 	
  

 	
  

 	
 Purchase, NY
 10577

 
	
  

 	
  

 	
 Attention:

 	
 President/CEO

 
	
  

 	
  

 	
 Telephone:

 	
 914-641-3739

 
	
  

 	
  

 	
 Facsimile:

 	
 914-641-3777

 

Exhibit R-1

Table 1 to Monthly
Buyer Notice

Cumulative Default Levels

[See Attached]

Exhibit R-2

Exhibit S

FORM OF COMMITMENT PURCHASE PERIOD TERMS
LETTER

QUORUM FEDERAL CREDIT UNION
2 Manhattanville Road

Suite 401

Purchase, NY 10577

Dated as of December 22, 2010

Allan J Herz

President and Assistant Treasurer

BBCV Receivables-Q 2010 LLC

4950 Communication Avenue, Suite 900

Boca Raton, Florida 33431

	
  

 	
  

 	
  

 
	
  

 	
 Re:

 	
 Commitment
 Purchase Period Terms Letter; Initial Terms Governing Sale of Timeshare Loans
 by BBCV Receivables-Q 2010 LLC (the “Seller”) to Quorum Federal Credit Union
 (the “Buyer”)

 

Dear Mr. Herz:

          The Buyer
agrees to purchase Sale Date Timeshare Loan Pools during the Commitment
Purchase Period on the terms and conditions set forth in the Loan Sale and
Servicing Agreement dated as of December 22, 2010, by and among the Seller, the
Buyer, Bluegreen Corporation, as the Servicer, Concord Servicing Corporation,
as the Back-Up Servicer and the other parties thereto (the “Agreement”) as
supplemented below:

	
  

 	
  

 	
  

 
	
  

 	
 A.

 	
 Buyer’s Purchase Price Percentage: No less than __% during the first
 six months of the Commitment Purchase Period.

 
	
  

 	
  

 	
  

 
	
  

 	
 B.

 	
 Program Fee Rate: _% per annum for purchases during the first six (6)
 months of the Commitment Purchase Period, and purchases thereafter at a per
 annum rate no greater than the Maximum Program Fee Rate for the related
 Maximum Program Fee Rate Period.

 
	
  

 	
  

 	
  

 
	
  

 	
 C.

 	
 Loan Purchase Fee: the product of (i) __% and (ii) the outstanding
 principal loan balance of the related Sale Date Loan Pool.

 
	
  

 	
  

 	
  

 
	
  

 	
 D.

 	
 Timeshare Portfolio Performance Event triggers:

 

	
  

 	
  

 
	
  

 	
 a. Delinquency
 Level: ____% during the first six months of the Commitment Purchase Period

 

Exhibit S-1

	
  

 	
  

 
	
  

 	
 b. Default Level: ___% during the first six months of the Commitment
 Purchase Period

 
	
  

 	
  

 
	
  

 	
 c. Cumulative Default Level: Table 1 attached hereto during the first
six months of the Commitment Purchase Period 

 

          This letter
is provided pursuant to the provisions of Section 2.1(b) of the Agreement. Capitalized
terms not otherwise defined herein shall have the meaning ascribed thereto in
the Agreement.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 QUORUM
 FEDERAL CREDIT UNION, as Buyer

 
	
  

 	
  

 
	
  

 	
 By:

 	
  

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:  Bruno
 Sementilli 

 
	
  

 	
  

 	
 Title:    President

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Address:

 	
 2
 Manhattanville Road

 
	
  

 	
  

 	
  

 	
 Suite 401

 
	
  

 	
  

 	
  

 	
 Purchase, NY
 10577

 
	
  

 	
  

 	
 Attention:

 	
 President/CEO

 
	
  

 	
  

 	
 Telephone:

 	
 914-641-3739

 
	
  

 	
  

 	
 Facsimile:

 	
 914-641-3777

 

ACKNOWLEDGED
AND AGREED TO:

BBCV
Receivables-Q 2010 LLC, as Seller

	
  

 	
  

 	
  

 
	
 By:

 	
  

 	
  

 
	
  

 	

 

 
	
  

 	
 Name:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
 Title:

 	
  

 
	
  

 	
  

 	

 

 

	
  

 	
  

 
	
 Address: 

 	
  

 
	
  

 	

 

 

	
  

 	
  

 
	
 Attention: 

 	
  

 
	
  

 	

 

 

	
  

 	
  

 
	
 Telephone: 

 	
  

 
	
  

 	

 

 

	
  

 	
  

 
	
 Facsimile: 

 	
  

 
	
  

 	

 

 

Exhibit S-2

Table 1 to
Commitment Purchase Period Terms Letter

Cumulative Default Levels

[See Attached]

Exhibit S-3

Annex A

STANDARD DEFINITIONS

Annex A

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