Document:

Exhibit 10.212

Execution Copy 

BXG TIMESHARE TRUST I, 

as Issuer

BLUEGREEN CORPORATION, 

as Servicer

VACATION TRUST, INC., 

as Club Trustee

CONCORD SERVICING CORPORATION, 

as Backup Servicer

U.S. BANK NATIONAL ASSOCIATION, 

as Indenture Trustee, Paying Agent and Custodian

and

BRANCH BANKING AND TRUST COMPANY, 
as Agent

AMENDED AND RESTATED INDENTURE

Dated as of March 1, 2008

Timeshare Loan-Backed VFN Notes, Series I

TABLE OF CONTENTS

	
 

	
 

	
 

	
 

	
 

	
Page

	
 

	
 

	

	
 

	
 

	
 

	
ARTICLE I.
  DEFINITIONS AND OTHER PROVISIONS OF GENERAL

	
 

	
 

	
APPLICATION

	
3

	
 

	
 

	
 

	
SECTION
1.1.

	
General
  Definitions and Usage of Terms

	
3

	
 

	
 

	
 

	
SECTION
1.2.

	
Compliance
  Certificates and Opinions

	
3

	
 

	
 

	
 

	
SECTION
1.3.

	
Form of
  Documents Delivered to Indenture Trustee

	
4

	
 

	
 

	
 

	
SECTION
1.4.

	
Acts of
  Noteholders, etc.

	
5

	
 

	
 

	
 

	
SECTION
1.5.

	
Notice to
  Noteholders; Waiver

	
6

	
 

	
 

	
 

	
SECTION
1.6.

	
Effect of
  Headings and Table of Contents

	
6

	
 

	
 

	
 

	
SECTION
1.7.

	
Successors
  and Assigns

	
6

	
 

	
 

	
 

	
SECTION
1.8.

	
GOVERNING
  LAW

	
6

	
 

	
 

	
 

	
SECTION
1.9.

	
Legal
  Holidays

	
7

	
 

	
 

	
 

	
SECTION 1.10.

	
Execution in
  Counterparts

	
7

	
 

	
 

	
 

	
SECTION 1.11.

	
Inspection

	
7

	
 

	
 

	
 

	
SECTION 1.12.

	
Survival of
  Representations and Warranties

	
7

	
 

	
 

	
 

	
SECTION 1.13.

	
Effective
  Date

	
7

	
 

	
 

	
 

	
 

	
 

	
 

	
ARTICLE II.
  THE NOTES

	
8

	
 

	
 

	
 

	
SECTION
2.1.

	
General
  Provisions

	
8

	
 

	
 

	
 

	
SECTION
2.2.

	
Definitive
  Notes

	
9

	
 

	
 

	
 

	
SECTION
2.3.

	
[RESERVED]

	
9

	
 

	
 

	
 

	
SECTION
2.4.

	
Registration,
  Transfer and Exchange of Notes

	
9

	
 

	
 

	
 

	
SECTION
2.5.

	
Mutilated,
  Destroyed, Lost and Stolen Notes

	
10

i

	
 

	
 

	
 

	
SECTION
2.6.

	
Payment of
  Interest and Principal; Rights Preserved

	
11

	
 

	
 

	
 

	
SECTION
2.7.

	
Persons Deemed
  Owners

	
12

	
 

	
 

	
 

	
SECTION
2.8.

	
Cancellation

	
12

	
 

	
 

	
 

	
SECTION
2.9.

	
Noteholder
  Lists

	
12

	
 

	
 

	
 

	
SECTION 2.10.

	
Treasury
  Notes

	
12

	
 

	
 

	
 

	
SECTION 2.11.

	
[RESERVED]

	
13

	
 

	
 

	
 

	
SECTION 2.12.

	
Confidentiality

	
13

	
 

	
 

	
 

	
 

	
 

	
 

	
ARTICLE III.
  ACCOUNTS; COLLECTION AND APPLICATION OF MONEYS;

	
 

	
 

	
REPORTS

	
13

	
 

	
 

	
 

	
SECTION
3.1.

	
Trust
  Accounts; Investments by Indenture Trustee

	
13

	
 

	
 

	
 

	
SECTION
3.2.

	
Establishment
  and Administration of the Trust Accounts

	
15

	
 

	
 

	
 

	
SECTION
3.3.

	
[Reserved]

	
16

	
 

	
 

	
 

	
SECTION
3.4.

	
Distributions

	
16

	
 

	
 

	
 

	
SECTION
3.5.

	
Reports to
  Noteholders

	
18

	
 

	
 

	
 

	
SECTION
3.6.

	
[RESERVED]

	
19

	
 

	
 

	
 

	
SECTION
3.7.

	
Withholding
  Taxes

	
19

	
 

	
 

	
 

	
 

	
 

	
 

	
ARTICLE IV.
  THE TRUST ESTATE

	
19

	
 

	
 

	
 

	
SECTION
4.1.

	
Acceptance
  by Indenture Trustee

	
19

	
 

	
 

	
 

	
SECTION
4.2.

	
Acquisition
  of Timeshare Loans

	
20

	
 

	
 

	
 

	
SECTION
4.3.

	
[RESERVED]

	
20

	
 

	
 

	
 

	
SECTION
4.4.

	
Tax
  Treatment

	
20

	
 

	
 

	
 

	
SECTION
4.5.

	
Further
  Action Evidencing Grant of Security Interest and Assignments

	
21

	
 

	
 

	
 

	
SECTION
4.6.

	
Substitution
  and Repurchase of Timeshare Loans

	
21

	
 

	
 

	
 

	
SECTION
4.7.

	
Release of
  Lien

	
23

ii

	
 

	
 

	
 

	
SECTION
4.8.

	
Appointment
  of Custodian and Paying Agent

	
24

	
 

	
 

	
 

	
 

	
 

	
 

	
ARTICLE V.
  SERVICING OF TIMESHARE LOANS

	
24

	
 

	
 

	
 

	
SECTION
5.1.

	
Appointment
  of Servicer and Backup Servicer; Servicing Standard

	
24

	
 

	
 

	
 

	
SECTION
5.2.

	
Payments on
  the Timeshare Loans

	
24

	
 

	
 

	
 

	
SECTION
5.3.

	
Duties and
  Responsibilities of the Servicer

	
25

	
 

	
 

	
 

	
SECTION
5.4.

	
Servicer
  Events of Default

	
29

	
 

	
 

	
 

	
SECTION
5.5.

	
Accountings;
  Statements and Reports

	
31

	
 

	
 

	
 

	
SECTION
5.6.

	
Records

	
32

	
 

	
 

	
 

	
SECTION
5.7.

	
Fidelity
  Bond and Errors and Omissions Insurance

	
33

	
 

	
 

	
 

	
SECTION
5.8.

	
Merger or
  Consolidation of the Servicer

	
33

	
 

	
 

	
 

	
SECTION
5.9.

	
Sub-Servicing

	
34

	
 

	
 

	
 

	
SECTION
5.10.

	
Servicer
  Resignation

	
34

	
 

	
 

	
 

	
SECTION
5.11.

	
Fees and
  Expenses

	
34

	
 

	
 

	
 

	
SECTION
5.12.

	
Access to
  Certain Documentation

	
35

	
 

	
 

	
 

	
SECTION
5.13.

	
No Offset

	
35

	
 

	
 

	
 

	
SECTION
5.14.

	
Account
  Statements

	
35

	
 

	
 

	
 

	
SECTION
5.15.

	
Indemnification;
  Third Party Claim

	
35

	
 

	
 

	
 

	
SECTION
5.16.

	
Backup
  Servicer

	
36

	
 

	
 

	
 

	
SECTION
5.17.

	
Aruba
  Notices

	
37

	
 

	
 

	
 

	
SECTION
5.18.

	
Recordation

	
37

	
 

	
 

	
 

	
 

	
 

	
 

	
ARTICLE VI.
  EVENTS OF DEFAULT; REMEDIES

	
37

	
 

	
 

	
 

	
SECTION
6.1.

	
[RESERVED]

	
37

	
 

	
 

	
 

	
SECTION
6.2.

	
Acceleration
  of Maturity; Rescission and Annulment

	
37

	
 

	
 

	
 

	
SECTION
6.3.

	
Remedies

	
39

iii

	
 

	
 

	
 

	
SECTION
6.4.

	
Indenture
  Trustee May File Proofs of Claim

	
40

	
 

	
 

	
 

	
SECTION
6.5.

	
Indenture
  Trustee May Enforce Claims Without Possession of Notes

	
41

	
 

	
 

	
 

	
SECTION
6.6.

	
Application
  of Money Collected

	
41

	
 

	
 

	
 

	
SECTION
6.7.

	
Limitation
  on Suits

	
44

	
 

	
 

	
 

	
SECTION
6.8.

	
Unconditional
  Right of Noteholders to Receive Principal and Interest

	
45

	
 

	
 

	
 

	
SECTION
6.9.

	
Restoration
  of Rights and Remedies

	
45

	
 

	
 

	
 

	
SECTION 6.10.

	
Rights and
  Remedies Cumulative

	
45

	
 

	
 

	
 

	
SECTION 6.11.

	
Delay or
  Omission Not Waiver

	
46

	
 

	
 

	
 

	
SECTION 6.12.

	
Control by
  Agent

	
46

	
 

	
 

	
 

	
SECTION 6.13.

	
Waiver of
  Events of Default

	
46

	
 

	
 

	
 

	
SECTION 6.14.

	
Undertaking
  for Costs

	
47

	
 

	
 

	
 

	
SECTION 6.15.

	
Waiver of
  Stay or Extension Laws

	
47

	
 

	
 

	
 

	
SECTION 6.16.

	
Sale of
  Trust Estate

	
47

	
 

	
 

	
 

	
SECTION 6.17.

	
Action on
  Notes

	
48

	
 

	
 

	
 

	
SECTION 6.18.

	
Performance
  and Enforcement of Certain Obligations

	
48

	
 

	
 

	
 

	
 

	
 

	
 

	
ARTICLE VII.
  THE INDENTURE TRUSTEE

	
49

	
 

	
 

	
 

	
SECTION
7.1.

	
Certain
  Duties

	
49

	
 

	
 

	
 

	
SECTION
7.2.

	
Notice of
  Events of Default

	
50

	
 

	
 

	
 

	
SECTION
7.3.

	
Certain
  Matters Affecting the Indenture Trustee

	
50

	
 

	
 

	
 

	
SECTION
7.4.

	
Indenture
  Trustee Not Liable for Notes or Timeshare Loans

	
51

	
 

	
 

	
 

	
SECTION
7.5.

	
Indenture
  Trustee May Own Notes

	
52

	
 

	
 

	
 

	
SECTION
7.6.

	
Indenture
  Trustee’s Fees and Expenses

	
52

	
 

	
 

	
 

	
SECTION
7.7.

	
Eligibility
  Requirements for Indenture Trustee

	
52

	
 

	
 

	
 

	
SECTION
7.8.

	
Resignation
  or Removal of Indenture Trustee

	
53

	
 

	
 

	
 

	
SECTION
7.9.

	
Successor
  Indenture Trustee

	
53

iv

	
 

	
 

	
 

	
SECTION 7.10.

	
Merger or
  Consolidation of Indenture Trustee

	
55

	
 

	
 

	
 

	
SECTION 7.11.

	
Appointment
  of Co-Indenture Trustee or Separate Indenture Trustee

	
55

	
 

	
 

	
 

	
SECTION 7.12.

	
Paying Agent
  and Note Registrar Rights

	
56

	
 

	
 

	
 

	
SECTION 7.13.

	
Authorization

	
56

	
 

	
 

	
 

	
SECTION 7.14.

	
Maintenance
  of Office or Agency

	
57

	
 

	
 

	
 

	
 

	
 

	
 

	
ARTICLE
  VIII. COVENANTS OF THE ISSUER

	
57

	
 

	
 

	
 

	
SECTION
8.1.

	
Payment of
  Principal, Interest and Other Amounts

	
57

	
 

	
 

	
 

	
SECTION
8.2.

	
Eligible
  Timeshare Loans

	
57

	
 

	
 

	
 

	
SECTION
8.3.

	
Money for
  Payments to Noteholders to Be Held in Trust

	
57

	
 

	
 

	
 

	
SECTION
8.4.

	
Existence;
  Merger; Consolidation, etc.

	
59

	
 

	
 

	
 

	
SECTION
8.5.

	
Protection
  of Trust Estate; Further Assurances

	
59

	
 

	
 

	
 

	
SECTION
8.6.

	
Additional
  Covenants

	
61

	
 

	
 

	
 

	
SECTION
8.7.

	
Taxes

	
63

	
 

	
 

	
 

	
SECTION
8.8.

	
Restricted
  Payments

	
63

	
 

	
 

	
 

	
SECTION
8.9.

	
Treatment of
  Notes as Debt for Tax Purposes

	
63

	
 

	
 

	
 

	
SECTION 8.10.

	
Further
  Instruments and Acts

	
63

	
 

	
 

	
 

	
 

	
 

	
 

	
ARTICLE IX.
  SUPPLEMENTAL INDENTURES

	
63

	
 

	
 

	
 

	
SECTION
9.1.

	
Supplemental
  Indentures

	
64

	
 

	
 

	
 

	
SECTION
9.2.

	
Supplemental
  Indentures with Consent of Noteholders

	
64

	
 

	
 

	
 

	
SECTION
9.3.

	
Execution of
  Supplemental Indentures

	
65

	
 

	
 

	
 

	
SECTION
9.4.

	
Effect of
  Supplemental Indentures

	
65

	
 

	
 

	
 

	
SECTION
9.5.

	
Reference in
  Notes to Supplemental Indentures

	
66

	
 

	
 

	
 

	
 

	
 

	
 

	
ARTICLE X.
  BORROWINGS

	
66

	
 

	
 

	
 

	
SECTION 10.1.

	
Optional
  Borrowings

	
66

v

	
 

	
 

	
 

	
ARTICLE XI.
  SATISFACTION AND DISCHARGE

	
67

	
 

	
 

	
 

	
SECTION
11.1.

	
Satisfaction
  and Discharge of Indenture

	
67

	
 

	
 

	
 

	
SECTION
11.2.

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

	
68

	
 

	
 

	
 

	
SECTION
11.3.

	
Trust
  Termination Date

	
68

	
 

	
 

	
 

	
 

	
 

	
 

	
ARTICLE XII.
  REPRESENTATIONS AND WARRANTIES AND COVENANTS

	
68

	
 

	
 

	
 

	
SECTION
12.1.

	
Representations
  and Warranties of the Issuer

	
68

	
 

	
 

	
 

	
SECTION
12.2.

	
Representations
  and Warranties of the Servicer

	
70

	
 

	
 

	
 

	
SECTION
12.3.

	
Representations
  and Warranties of the Indenture Trustee

	
73

	
 

	
 

	
 

	
SECTION
12.4.

	
Multiple
  Roles

	
74

	
 

	
 

	
 

	
SECTION
12.5.

	
[Reserved]

	
74

	
 

	
 

	
 

	
SECTION
12.6.

	
Covenants of
  the Club Trustee

	
74

	
 

	
 

	
 

	
SECTION
12.7.

	
Representations
  and Warranties of the Backup Servicer

	
76

	
 

	
 

	
 

	
 

	
 

	
 

	
ARTICLE
  XIII. MISCELLANEOUS

	
79

	
 

	
 

	
 

	
SECTION
13.1.

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

	
79

	
 

	
 

	
 

	
SECTION
13.2.

	
Statements
  Required in Certificate or Opinion

	
79

	
 

	
 

	
 

	
SECTION
13.3.

	
Notices

	
80

	
 

	
 

	
 

	
SECTION 13.4.

	
No
  Proceedings

	
82

	
 

	
 

	
 

	
SECTION
13.5.

	
Limitation
  of Liability of Owner Trustee

	
82

	
 

	
 

	
 

	
 

	
 

	
 

	
ARTICLE XIV.
  REDEMPTION OF NOTES

	
83

	
 

	
 

	
 

	
SECTION
14.1.

	
Clean-up
  Call; Optional Redemption; Election to Redeem

	
83

	
 

	
 

	
 

	
SECTION
14.2.

	
Notice to
  Indenture Trustee

	
83

	
 

	
 

	
 

	
SECTION
14.3.

	
Notice of
  Redemption by the Servicer

	
83

	
 

	
 

	
 

	
SECTION
14.4.

	
Deposit of
  Redemption Price

	
83

vi

	
 

	
 

	
 

	
SECTION 14.5.

	
Notes
  Payable on Redemption Date

	
84

	
 

	
 

	
 

	
 

	
 

	
 

	
ARTICLE XV.
  NON-PETITION AND LIMITED RECOURSE

	
84

	
 

	
 

	
 

	
SECTION 15.1.

	
Limited
  Recourse Against A Structured Purchaser

	
84

	
 

	
 

	
 

	
SECTION 15.2.

	
No
  Bankruptcy Petition Against A Structured Purchaser

	
84

	
 

	
 

	
Exhibit A

	
Form of
  Notes

	
 

	
 

	
Exhibit B

	
Form of
  Investor Representation Letter

	
 

	
 

	
Exhibit C

	
Reserved

	
 

	
 

	
Exhibit D

	
Form of
  Monthly Servicer Report

	
 

	
 

	
Exhibit E

	
Servicing
  Officer’s Certificate

	
 

	
 

	
Exhibit F

	
Form of
  Investor Certification

	
 

	
 

	
Exhibit G

	
Form of ROAP
  Waiver Letter

	
 

	
 

	
Exhibit H

	
Form of
  Aruba Notice

	
 

	
 

	
Exhibit I

	
Resort
  Ratings

	
 

	
 

	
Exhibit J

	
Collection
  Policy

	
 

	
 

	
Exhibit K

	
Credit
  Policy

	
 

	
 

	
Annex A

	
Amended and
  Restated Standard Definitions

	
 

	
 

	
Schedule I

	
Schedule of
  Timeshare Loans

	
 

	
 

	
Schedule
  12.2(e)

	
Pending
  Litigation/Proceedings

vii

INDENTURE

                    This
AMENDED AND RESTATED INDENTURE, dated as of March 1, 2008 (this “Indenture”), is among BXG TIMESHARE TRUST
I, a statutory trust formed under the laws of the State of Delaware, as issuer
(the “Issuer”), BLUEGREEN
CORPORATION (“Bluegreen”), a
Massachusetts corporation, in its capacity as servicer (the “Servicer”), VACATION TRUST, INC., a Florida
corporation, as trustee under the Club Trust Agreement (the “Club Trustee”), CONCORD SERVICING
CORPORATION, an Arizona corporation, as backup servicer (the “Backup Servicer”), U.S. BANK NATIONAL
ASSOCIATION, a national banking association, as indenture trustee (the “Indenture Trustee”), paying agent (the
“Paying Agent”) and as custodian (the “Custodian”) and BRANCH BANKING AND TRUST COMPANY,
a North Carolina corporation, as agent of the Purchasers pursuant to the Note
Funding Agreement (the “Agent”)
and hereby amends and restates in its entirety that certain indenture, dated as
of May 1, 2006 (the “Original Indenture”),
among the parties hereto. 

RECITALS OF THE ISSUER

                    WHEREAS,
the parties hereto desire to amend and restate in its entirety the Original
Indenture as provided herein, and all actions required to do so under the
Original Indenture have been taken; 

                    WHEREAS,
the Issuer had duly authorized the execution and delivery of the Original
Indenture to provide for the issuance of five classes of variable funding notes
designated as the Timeshare Loan-Backed VFN Notes, Series I, Class A (the “Original Class A Notes”), the Timeshare
Loan-Backed VFN Notes, Series I, Class B (the “Original Class B Notes”), the Timeshare Loan-Backed VFN Notes,
Series I, Class C (the “Original Class C
Notes”), the Timeshare Loan-Backed VFN Notes, Series I, Class D (the
“Original Class D Notes”) and the
Timeshare Loan-Backed VFN Notes, Series I, Class E (the “Original Class E Notes”, and together with
the Original Class A Notes, the Original Class B Notes, the Original Class C
Notes and the Original Class D Notes, the “Original
Notes”); 

                    WHEREAS,
the Issuer has duly authorized (a) the execution and delivery of this Indenture
to provide for the issuance of five classes of variable funding notes
designated as the Timeshare Loan-Backed VFN Notes, Series I, Class A (the “Class A Notes”), the Timeshare Loan-Backed
VFN Notes, Series I, Class B (the “Class B
Notes”), the Timeshare Loan-Backed VFN Notes, Series I, Class C (the
“Class C Notes”), the Timeshare
Loan-Backed VFN Notes, Series I, Class D (the “Class D Notes”) and the Timeshare Loan-Backed VFN Notes,
Series I, Class E (the “Class E Notes”,
and together with the Class A Notes, the Class B Notes, the Class C Notes and
the Class D Notes, the “Notes”)
and (b) the exchange of the Original Notes for the Notes; 

                    WHEREAS,
the Notes will evidence Borrowings made from time to time prior to the Facility
Termination Date by the Issuer in accordance with the terms described herein
and in the Note Funding Agreement; 

1

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

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

                    WHEREAS,
the Agent, as nominee of the Purchasers shall, as sole Noteholder of each Class
of Notes, be entitled to exercise certain rights and remedies under this
Indenture; and 

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

                         NOW,
THEREFORE, THIS INDENTURE WITNESSETH: 

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

GRANTING CLAUSE

                    To
secure the payment of the principal of and interest on the Notes in accordance
with their terms, the payment of all of the sums payable under this Indenture
and the performance of the covenants contained in this Indenture, the Issuer
hereby Grants to the Indenture Trustee, for the benefit of the Noteholders, all
of the Issuer’s right, title and interest in and to the following whether now
owned or hereafter acquired and any and all benefits accruing to the Issuer
from, (i) all Timeshare Loans acquired by the Issuer from time to time pursuant
to the Sale Agreement, (ii) any Qualified Substitute Timeshare Loans, (iii) the
Receivables in respect of each 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 Timeshare Loan, (vi) all rights and remedies under
the Purchase Agreement, the Sale Agreement, the Lockbox Agreement, the Backup
Servicing Agreement, the Administration Agreement, the Custodial Agreement or
any Hedge Agreement, (vii) all amounts in or to be deposited to the Lockbox
Account, the Collection Account, the Credit Card Account and the General
Reserve 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 “Trust Estate”).
Notwithstanding the foregoing, the Trust Estate shall not include (i) any
Timeshare Loan released from the Lien of this Indenture in accordance with the
terms hereof and any Related Security, Timeshare Loan Documents, income or
proceeds related to such released Timeshare Loan, (ii) any amount distributed
pursuant to Section 3.4 or Section 6.6 hereof or (iii) any Misdirected
Deposits. 

2

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

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

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

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

ARTICLE I.

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

          SECTION
1.1.     General Definitions and Usage of Terms.

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

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

          SECTION
1.2.     Compliance Certificates and Opinions. 

                    Upon
any written application or request (or oral application with prompt written or
telecopied confirmation) by the Issuer to the Indenture Trustee to take any
action under any 

3

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

          SECTION
1.3.     Form of Documents Delivered to Indenture
Trustee. 

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

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

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

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

4

of any
statement or opinion contained in any such document as provided in Section
7.1(b) hereof. 

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

          SECTION
1.4.     Acts of Noteholders, etc. 

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

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

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

5

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

          SECTION
1.5.     Notice to Noteholders; Waiver. 

                    (a)     Where
this Indenture provides for notice to Noteholders of any event, or the mailing
of any report to Noteholders, such notice or report shall be sufficiently given
(unless otherwise herein expressly provided) if in writing and mailed, via
first class mail, or sent by private courier or confirmed telecopy to each
Noteholder affected by such event or to whom such report is required to be
mailed, at its address as it appears in the Note Register, not later than the
latest date, and not earlier than the earliest date, prescribed for the giving
of such notice or the mailing of such report. In any case where a notice or
report to Noteholders is mailed, neither the failure to mail such notice or
report, nor any defect in any notice or report so mailed, to any particular
Noteholder shall affect the sufficiency of such notice or report with respect
to other Noteholders. Where this Indenture provides for notice in any manner,
such notice may be waived in writing by the Person entitled to receive such
notice, either before or after the event, and such waiver shall be the
equivalent of such notice. Waivers of notice by Noteholders shall be filed with
the Indenture Trustee, but such filing shall not be a condition precedent to
the validity of any action taken in reliance upon such waiver. 

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

          SECTION
1.6.     Effect of Headings and Table of Contents.

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

          SECTION
1.7.     Successors and Assigns. 

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

          SECTION
1.8.     GOVERNING LAW. 

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

6

OBLIGATIONS LAW OF THE STATE OF NEW YORK.
UNLESS MADE APPLICABLE IN A SUPPLEMENT HERETO, THIS INDENTURE IS NOT SUBJECT TO
THE TRUST INDENTURE ACT OF 1939, AS AMENDED, AND SHALL NOT BE GOVERNED THEREBY
AND CONSTRUED IN ACCORDANCE THEREWITH. 

          SECTION
1.9.     Legal Holidays. 

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

          SECTION
1.10.     Execution in Counterparts. 

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

          SECTION
1.11.     Inspection.

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

          SECTION
1.12.     Survival of Representations and
Warranties. 

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

7

          SECTION
1.13.     Effective Date. 

                    This
Indenture shall be effective as of March 31, 2008. 

ARTICLE II.

THE NOTES

          SECTION
2.1.     General Provisions. 

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

                    (b)     Maximum
Outstanding Note Balance and Denominations. The Outstanding Note Balance of
the Class A Notes, the Class B Notes, the Class C Notes, the Class D Notes and
the Class E Notes shall not exceed the Maximum Outstanding Class A Note
Balance, the Maximum Outstanding Class B Note Balance, the Maximum Outstanding
Class C Note Balance, the Maximum Outstanding Class D Note Balance and the
Maximum Outstanding Class E Note Balance, respectively. The Notes shall be issuable
only as registered Notes, without interest coupons, in the denominations of at
least $50,000 and in integral multiples of $1,000; provided, however,
that the foregoing shall not restrict or prevent the transfer in accordance
with Section 2.4 hereof of any Note with a remaining Outstanding Note Balance
of less than $50,000.

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

8

          SECTION
2.2.     Definitive Notes. 

                    The
Notes shall be issued in definitive form only. 

          SECTION
2.3.     [RESERVED] 

          SECTION
2.4.     Registration, Transfer and Exchange of
Notes. 

                    (a)     The
Issuer shall cause to be kept at the Corporate Trust Office a register (the “Note Register”) for the registration,
transfer and exchange of Notes. The Indenture Trustee is hereby appointed “Note Registrar” for purposes of
registering
Notes and transfers of Notes as herein provided. The names and addresses of all
Noteholders and the names and addresses of the transferees of any Notes shall
be registered in the Note Register. The Person in whose name any Note is so
registered shall be deemed and treated as the sole owner and Noteholder thereof
for all purposes of this Indenture and the Note Registrar, the Issuer, the
Indenture Trustee, the Servicer and any agent of any of them shall not be
affected by any notice or knowledge to the contrary. The Notes are transferable
or exchangeable only upon the surrender of such Note to the Note Registrar at
the Corporate Trust Office together with an assignment and transfer (executed
by the Noteholder or his duly authorized attorney), subject to the applicable
requirements of this Section 2.4. Upon request of the Indenture Trustee, the
Note Registrar shall provide the Indenture Trustee with the names and addresses
of the Noteholders. 

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

                    (c)     The
issuance of the Notes will not be registered or qualified under the Securities
Act or the securities laws of any state. No resale or transfer of any Note may
be made unless such resale or transfer is made in accordance with this
Indenture and only if (i) in the United States to a person whom the transferor
reasonably believes is a “qualified institutional buyer” (as defined in Rule
144A) that is purchasing for its own account or for the account of a qualified
institutional buyer in a transaction meeting the requirements of Rule 144A as
certified by the transferee (other than the Agent) in a letter in the form of Exhibit
B hereto, (ii) pursuant to an exemption from registration under the
Securities Act provided by Rule 144 (if available) or (iii) pursuant to an
effective registration statement under the Securities Act, in each of cases (i)
through (iii) in accordance with any applicable securities laws of any state of
the United States. Each transferee and each subsequent transferee will be
required to notify any subsequent purchaser of such Notes from it of the resale
restrictions described herein. None of the Issuer, the Servicer or the
Indenture Trustee is obligated to register or qualify the Notes under the 

9

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

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

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

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

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

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

                    (i)     Notwithstanding
anything in this Section 2.4 or elsewhere in this Indenture or the Notes, the
transfer restrictions described herein shall apply only to the Noteholders and
shall not apply to the Purchasers whose rights to transfer interests in the
Notes are governed solely by Section 8 of the Note Funding Agreement. 

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

                    (a)     If
any mutilated Note is surrendered to the Indenture Trustee, the Issuer shall
execute and the Indenture Trustee shall authenticate and deliver in exchange
therefore a 

10

replacement
Note of like tenor and principal amount and bearing a number not
contemporaneously outstanding. 

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

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

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

                    (e)     Every
replacement Note issued pursuant to this Section 2.5 in lieu of any destroyed,
lost or stolen Note shall constitute an original additional contractual
obligation of the Issuer, whether or not the destroyed, lost or stolen Note
shall be at any time enforceable by anyone, and shall be entitled to all the
benefits of this Indenture equally and proportionately with any and all other
Notes duly issued hereunder. 

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

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

                    (a)     Any
installment of interest or principal, payable on any Note that is punctually
paid or duly provided for by or on behalf of the Issuer on the applicable
Payment Date shall be paid to the Person in whose name such Note was registered
at the close of business on the Record Date for such Payment Date by check
mailed to the address specified in the Note Register (or, if the Noteholder is
the Agent, at such addresses as the Agent shall specify in writing), or if a
Noteholder has provided wire transfer instructions to the Indenture Trustee at
least five Business Days prior to the applicable Payment Date, upon the request
of a Noteholder, by wire transfer of federal funds to the accounts and numbers
specified in the Note Register (or, if the Noteholder is the Agent, at such
accounts and numbers as the Agent shall specify in writing), in each case on
such Record Date for such Person. 

                    (b)     All
reductions in the principal amount of a Note affected by payments of principal
made on any Payment Date shall be binding upon all Noteholders of such Note and
of any Note issued upon the registration of transfer thereof or in exchange
therefore or in lieu 

11

thereof,
whether or not such payment is noted on such Note. All payments on the Notes
shall be paid without any requirement of presentment, but each Noteholder shall
be deemed to agree, by its acceptance of the same, to surrender such Note at
the Corporate Trust Office within 30 days after receipt of the final principal
payment of such Note. 

          SECTION
2.7.     Persons Deemed Owners. 

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

          SECTION
2.8.     Cancellation. 

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

          SECTION
2.9.     Noteholder Lists. 

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

          SECTION
2.10.     Treasury Notes.

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

12

          SECTION
2.11.     [RESERVED]. 

          SECTION
2.12.     Confidentiality. 

                    Each
Noteholder covenants and agrees that any information obtained pursuant to, or
otherwise in connection with, this Indenture or the other Transaction Documents
shall be held in confidence (it being understood that documents provided to the
Agent hereunder may in all cases be distributed by the Agent to the Purchasers)
except that the Noteholder (or Purchasers) may disclose such information (i) to
its officers, directors, members, employees, agents, counsel, accountants,
auditors, advisors or representatives who have an obligation to maintain the
confidentiality of such information, (ii) to the extent such information has
become available to the public other than as a result of a disclosure by or
through the Noteholder, Agent or such Purchaser, (iii) to the extent such
information was available to the Noteholder, Agent or such Purchaser on a
non-confidential basis prior to its disclosure to the Noteholder, Agent or such
Purchaser in connection with this transaction, (iv) with the consent of the
Servicer, (v) to the extent the Noteholder, Agent or such Purchaser should be
(A) required in connection with any legal or regulatory proceeding or (B)
requested by any Governmental Authority to disclose such information; provided,
that, in the case of this clause (v), the Noteholder, the Agent or such
Purchaser, as the case may be, will (unless otherwise prohibited by law or in
connection with regular regulatory reviews) notify the Issuer and the Servicer
of its intention to make any such disclosure as early as practicable prior to
making such disclosure and cooperate with the Servicer in connection with any
action to obtain a protective order with respect to such disclosure; or (vi) in
the case of a Structured Purchaser, to any rating agency rating or proposing to
rate any commercial paper issued by such Structured Purchaser or a related
Liquidity Institution. 

ARTICLE III.

ACCOUNTS; COLLECTION AND 

APPLICATION OF MONEYS; REPORTS

          SECTION
3.1.     Trust Accounts; Investments by Indenture
Trustee. 

                    (a)          The
Indenture Trustee has established in the name of the Indenture Trustee for the
benefit of the Noteholders as provided in this Indenture, the Trust Accounts,
which accounts (other than the Lockbox Account and the Credit Card Account) are
Eligible Bank Accounts maintained at the Corporate Trust Office. 

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

13

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

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

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

                    (e)          In
the event that either (i) the Issuer shall have failed to give investment
directions to the Indenture Trustee by 9:30 A.M., New York City time on any
Business Day on which there may be uninvested cash or (ii) an Event of Default
shall be continuing, the Indenture Trustee shall promptly invest and reinvest
the funds then in the designated Trust Account to the fullest extent
practicable in those obligations or securities described in clause (e) of the
definition of “Eligible Investments”. All investments made by the Indenture
Trustee shall mature no later than the maturity date therefor permitted by
Section 3.1(f) hereof. 

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

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

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

14

investment
made by it in accordance with this Section 3.1 on the grounds that it could
have made a more favorable investment or a more favorable selection for sale of
an investment. 

          SECTION
3.2.     Establishment and Administration of the
Trust Accounts. 

                    (a)          Collection
Account. The Issuer hereby directs and the Indenture Trustee hereby agrees
to continue to maintain an account (the “Collection
Account”) for the benefit of the Noteholders. The Collection Account
is an Eligible Bank Account initially established at the corporate trust
department of the Indenture Trustee, bearing the following designation “BXG
Timeshare Trust I, Timeshare Loan-Backed VFN Notes, Series I — Collection
Account, U.S. Bank National Association, as Indenture Trustee for the benefit
of the Noteholders”. The Indenture Trustee on behalf of the Noteholders shall
possess all right, title and interest in all funds on deposit from time to time
in the Collection Account and in all proceeds thereof. The Collection Account
shall be under the sole dominion and control of the Indenture Trustee for the
benefit of the Noteholders as their interests appear in the Trust Estate. If,
at any time, the Collection Account ceases to be an Eligible Bank Account, the
Indenture Trustee shall within two Business Days establish a new Collection
Account which shall be an Eligible Bank Account, transfer any cash and/or any
investments to such new Collection Account, and from the date such new
Collection Account is established, it shall be the “Collection Account”. The
Indenture Trustee agrees to immediately deposit any amounts received by it into
the Collection Account. Amounts on deposit in the Collection Account shall be
invested in accordance with Section 3.1 hereof. Withdrawals and payments from
the Collection Account will be made on each Payment Date as provided in Section
3.4 or Section 6.6 hereof, as applicable. The Indenture Trustee, at the written
direction of the Servicer, shall withdraw (no more than once per calendar week)
from the Collection Account and return to the Servicer or as directed by the
Servicer, any amounts which (i) were mistakenly deposited in the Collection
Account, including, without limitation, amounts representing Misdirected
Payments and (ii) represent Additional Servicing Compensation. The Indenture
Trustee may conclusively rely on such written direction. 

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

15

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

          SECTION
3.3.     [Reserved]. 

          SECTION
3.4.     Distributions. 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

16

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

	
          (ix)          to
 the Agent and the Placement Agent, any Fees, plus any accrued and unpaid Fees
 with respect to prior Payment Dates; 

	
 

	
 

	
 

	
          (x)           on
 a pari passu basis, to the Class A Noteholders holding LIBOR Notes and CP
 Notes, the Class A LIBOR Interest Distribution Amount and Class A CP Interest
 Distribution Amount, respectively; 

	
 

	
 

	
 

	
          (xi)          on
 a pari passu basis, to the Class B Noteholders holding LIBOR Notes and CP
 Notes, the Class B LIBOR Interest Distribution Amount and the Class B CP
 Interest Distribution Amount, respectively; 

	
 

	
 

	
 

	
          (xii)          on
 a pari passu basis, to the Class C Noteholders holding LIBOR Notes and CP
 Notes, the Class C LIBOR Interest Distribution Amount and the Class C CP
 Interest Distribution Amount, respectively; 

	
 

	
 

	
 

	
          (xiii)         on
 a pari passu basis, to the Class D Noteholders holding LIBOR Notes and CP
 Notes, the Class D LIBOR Interest Distribution Amount and the Class D CP
 Interest Distribution Amount, respectively; 

	
 

	
 

	
 

	
          (xiv)         on
 a pari passu basis, to the Class E Noteholders holding LIBOR Notes and CP
 Notes, the Class E LIBOR Interest Distribution Amount and the Class E CP
 Interest Distribution Amount, respectively; 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
          (xvi)         to
 the Class B Noteholders, the Class B Principal Distribution Amount 

	
 

	
 

	
 

	
          (xvii)        to
 the Class C Noteholders, the Class C Principal Distribution Amount 

	
 

	
 

	
 

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

	
 

	
 

	
 

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

17

	
 

	
 

	
 

	
          (xx)         to
 the Class A Noteholders, the Class B Noteholders, the Class C Noteholders,
 the Class D Noteholders and the Class E Noteholders, to the extent
 applicable, amounts specified by the Agent and the Servicer as payable to
 such Noteholders pursuant to Sections 6.1, 6.2 and 6.3 of the Note Funding
 Agreement; 

	
 

	
 

	
 

	
          (xxi)         if
 a Cash Accumulation Event or an Event of Default shall have occurred and is
 continuing, to the General Reserve Account, all remaining Available Funds; 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
          (xxiii)        any
 amounts due and payable by the Issuer under the Transaction Documents, but
 not paid above (including, but not limited to, amounts owed by the Issuer in
 respect of its indemnification obligations); and 

	
 

	
 

	
 

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

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

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

          SECTION
3.5.     Reports to Noteholders. 

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

                    The
Indenture Trustee may make available to the Noteholders and the Agent, via the
Indenture Trustee’s internet website, the Monthly Servicer Report available
each month and, with the consent or at the direction of the Issuer, such other
information regarding the Notes and/or the Timeshare Loans as the Indenture
Trustee may have in its possession, but only with 

18

the use of a
password provided by the Indenture Trustee or its agent to such Person upon
receipt by the Indenture Trustee from such Person of a certification in the
form of Exhibit F; provided, however, that the Indenture
Trustee or its agent shall provide such password to the parties to this
Indenture and the Agent without requiring such certification. The Indenture
Trustee will make no representation or warranties as to the accuracy or
completeness of such documents and will assume no responsibility therefor. 

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

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

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

          SECTION
3.6.     [RESERVED]. 

          SECTION
3.7.     Withholding Taxes. 

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

ARTICLE IV.

THE TRUST ESTATE

          SECTION
4.1.     Acceptance by Indenture Trustee. 

                    (a)          The
Indenture Trustee does hereby re-acknowledge and re-confirm its acceptance of
the conveyance by the Issuer of the assets constituting the Trust Estate. The
Indenture Trustee shall hold the Trust Estate in trust for the benefit of the
Noteholders, subject to the terms and provisions hereof. Prior to each Funding
Date and in accordance with the Custodial Agreement, the Issuer will deliver or
cause to be delivered to the Custodian, the Timeshare Loan Files for all
related Timeshare Loans to be conveyed on such Funding Date. On or prior to
each Funding Date, the Issuer will deliver or cause to be delivered to the
Servicer, the 

19

Timeshare Loan
Servicing Files, for all related Timeshare Loans or Qualified Substitute
Timeshare Loans to be conveyed on such Funding Date. 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

          SECTION
4.2.     Acquisition of Timeshare Loans. 

                    The
Issuer covenants that it shall only acquire Timeshare Loans in accordance with
the provisions of the Sale Agreement and, without limiting the generality of
the Granting Clause, upon any such acquisition, such Timeshare Loans shall be
deemed to be a part of the Trust Estate. 

          SECTION
4.3.     [RESERVED]. 

          SECTION
4.4.     Tax Treatment. 

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

                    (b)          It
is the intention of the parties hereto that, with respect to all taxes, the Notes
will be treated as indebtedness of the Issuer to the Noteholders secured by the
Timeshare Loans (the “Intended Tax
Characterization”). The provisions of this Indenture shall be
construed in furtherance of the Intended Tax Characterization. Each of the
Issuer, the Servicer, the Indenture Trustee, the Club Trustee and the Backup
Servicer by entering into this Indenture, and each Noteholder by the purchase
of a Note, agree to report such transactions for purposes of all taxes in a
manner consistent with the Intended Tax Characterization, unless otherwise
required by applicable law. 

                    (c)          None
of the Issuer, the Servicer, the Club Trustee or the Backup Servicer shall take
any action inconsistent with the Indenture Trustee’s interest in the Timeshare
Loans 

20

and shall
indicate or shall cause to be indicated in its books and records held on its
behalf that each Timeshare Loan and the other Timeshare Loans constituting the
Trust Estate has been assigned to the Indenture Trustee on behalf of the
Noteholders. 

          SECTION
4.5.     Further Action Evidencing Grant of
Security Interest and Assignments. 

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

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

          SECTION
4.6.     Substitution and Repurchase of Timeshare
Loans. 

                    (a)          Mandatory
Substitution and Repurchase of Timeshare Loans for Breach of Representation or
Warranty. If at any time, any party hereto obtains knowledge, discovers, or
is notified by any other party hereto, that any of the representations and
warranties of the Depositor in the Sale Agreement were incorrect at the time
such representations and warranties were made, then the party discovering such
defect, omission, or circumstance shall promptly notify the other parties to
this Indenture, the Depositor and the Club Originator. In the event any such
representation or warranty of the Depositor is incorrect and materially and
adversely affects the 

21

value of a
Timeshare Loan or the interests of the Noteholders therein, then the Issuer and
the Indenture Trustee shall require the Depositor, within 30 days (or, if the
Depositor shall have provided satisfactory evidence to the Agent (at its sole
discretion) that (1) such breach can not be cured within the 30 day period, (2)
such breach can be cured within an additional 30 day period and (3) it is
diligently pursuing a cure, then 60 days) after the date it is first notified
of, or otherwise obtains Knowledge of such breach, to eliminate or otherwise
cure in all material respects the circumstance or condition which has caused
such representation or warranty to be incorrect or 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 (i) repurchase the Issuer’s interest in such Defective Timeshare Loan at
the Repurchase Price or (ii) provide one or more Qualified Substitute Timeshare
Loans and pay the Substitution Shortfall Amounts, if any. The Indenture Trustee
is hereby appointed attorney-in-fact, which appointment is coupled with an
interest and is therefore irrevocable, to act on behalf and in the name of the
Issuer to enforce the Depositor’s repurchase or substitution obligations if the
Depositor has not complied with its repurchase or substitution obligations
under the Sale Agreement within the aforementioned 30 day or 60-day period. 

                    (b)          Optional
Purchase or Substitution of Club Loans. Pursuant to the Purchase Agreement,
with respect to any Original Club Loan, on any date, the Club Originator, as
designee of the Depositor, will (at its option), if the related Obligor has
elected to effect and the Club Originator has agreed to effect an Upgrade,
either (i) pay to the Collection Account the Repurchase Price for such Original
Club Loan or (ii) substitute one or more Qualified Substitute Timeshare Loans
for such Original Club Loan and pay the related Substitution Shortfall Amounts,
if any; provided, however, that the option to substitute one or
more Qualified Substitute Timeshare Loans for an Original Club Loan is limited
on any date to (A) 20% of the sum of the Aggregate Initial Loan Balance, less
(B) the Loan Balances of Original Club Loans previously substituted by the Club
Originator pursuant to this Section 4.6(b) on the related substitution dates.
The Club Originator, as designee of the Depositor, shall deposit the related
Repurchase Price and Substitution Shortfall Amounts, if any, in the Collection
Account as set forth in Section 4.6(d) below. The Issuer acknowledges that the
Club Originator has agreed to use best efforts to exercise its substitution
option with respect to Original Club Loans prior to exercise of its repurchase
option, and to the extent that the Club Originator shall elect to substitute
Qualified Substitute Timeshare Loans for an Original Club Loan, the Club
Originator shall use best efforts to cause each such Qualified Substitute
Timeshare Loan to be, in the following order of priority, (i) the Upgrade Club
Loan related to such Original Club Loan (in which case, clause (rr) of Schedule
I to the Purchase Agreement and the Sale Agreement shall not apply as an
eligibility requirement) and (ii) an Upgrade Club Loan unrelated to such
Original Club Loan. 

                    (c)          Optional
Purchase or Substitution of Defaulted Timeshare Loans. Pursuant to the
Purchase Agreement, with respect to any Defaulted Timeshare Loans, on any date,
the Club Originator, as designee of the Depositor shall have the option, but
not the obligation, to either (i) purchase the Defaulted Timeshare Loan at the
Repurchase Price for such Defaulted Timeshare Loan or (ii) substitute one or
more Qualified Substitute Timeshare Loans for such Defaulted Timeshare Loan and
pay the related Substitution Shortfall Amounts, if any; provided, however,
that the option to repurchase a Defaulted Timeshare Loan or to substitute one
or more Qualified Substitute Timeshare Loans for a Defaulted Timeshare Loan is
limited on any 

22

date to the
Optional Purchase Limit and the Optional Substitution Limit, respectively. The
Club Originator, as designee of the Depositor, shall purchase or substitute
Defaulted Timeshare Loans as provided herein and the Club Originator shall
deposit the related Repurchase Price and Substitution Shortfall Amounts, if
any, in the Collection Account as set forth in Section 4.6(d) hereof. The Club
Originator, may irrevocably waive the Club Originator’s option to purchase or
substitute a Defaulted Timeshare Loan by delivering or causing to be delivered
to the Indenture Trustee a Waiver Letter in the form of Exhibit G attached
hereto.  

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

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

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

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

          SECTION
4.7.     Release of Lien. 

                    (a)          The
Issuer shall be entitled to obtain a release from the Lien of the Indenture for
any Timeshare Loan purchased, repurchased or substituted under Section 4.6 hereof,
(i) upon satisfaction of each of the applicable provisions of Section 4.6
hereof, (ii) in the case of any purchase or repurchase, after a payment by the
Depositor of the Repurchase Price of the Timeshare Loan, and (iii) in the case
of any substitution, after payment by the Depositor of the applicable
Substitution Shortfall Amounts, if any, pursuant to Section 4.6 hereof. 

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

                    (c)          In
connection with (a) and (b) above, the Issuer and Indenture Trustee will
execute and deliver such releases, endorsements and assignments as are provided
to it by the Depositor, in each case, without recourse, representation or
warranty, as shall be necessary to

23

 vest in the Depositor or its designee, the
legal and beneficial ownership of each Timeshare Loan being released pursuant
to this Section 4.7. The Servicer shall deliver a Request for Release to the
Custodian with respect to the related Timeshare Loan Files and Timeshare Loan
Servicing Files being released pursuant to this Section 4.7, and such files
shall be transferred to the Depositor or its designee. 

          SECTION
4.8.     Appointment of Custodian and Paying Agent.

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

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

ARTICLE V.

SERVICING OF TIMESHARE LOANS

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

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

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

          SECTION
5.2.     Payments on the Timeshare Loans. 

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

24

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

                    (c)          Subject
to subsection (d) below, the Indenture Trustee shall direct the Lockbox Bank to
remit all collections in respect of the Timeshare Loans on deposit in the
Lockbox Account to the Collection Account on each Business Day via automated
repetitive wire. 

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

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

          SECTION
5.3.     Duties and Responsibilities of the
Servicer. 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

	
          (vi)          take
  such other action as may be necessary or appropriate in the Servicer’s
  judgment (which shall be consistent with the Servicing Standard) for the
  purpose of collecting and transferring to the Indenture Trustee for deposit
  into the Collection Account all payments received by the Servicer or remitted
  to the 

25

	
 

	
 

	
 

	
Lockbox
  Account or the Credit Card Account in respect of the Timeshare Loans (except
  as otherwise expressly provided herein), and to carry out the duties and
  obligations imposed upon the Servicer pursuant to the terms of this
  Indenture; 

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

	

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

	
 

	
 

	
 

	

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

	
 

	
 

	
 

	
          (xi)          to
  the extent that the Custodian Fees or the Lockbox Fees are, in the Servicer’s
  reasonable business judgment, no longer commercially reasonable, use
  commercially reasonable efforts to exercise its rights under the Custodial
  Agreement or the Lockbox Agreement to replace the Custodian or Lockbox Bank, 

26

	
 

	
 

	
 

	
as
  applicable. Any such successor shall be reasonably acceptable to the
  Indenture Trustee; 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
          (xiii)          in
  the event that a Defaulted Timeshare Loan is not or cannot be released from
  the Lien of the Indenture pursuant to Section 4.7 hereof, the Servicer shall,
  in accordance with the Servicing Standard, promptly institute collection
  procedures, which may include, but is not limited to, cancellation,
  forfeiture, termination or foreclosure proceedings or obtaining a
  deed-in-lieu of foreclosure (each, a “Foreclosure
  Property”). Upon the Timeshare Property becoming a Foreclosure
  Property, the Servicer shall 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. 

                    (b)          The
Servicer shall, at least once each week, for each applicable Credit Card
Timeshare Loan, deposit to the Credit Card Account, the service charge imposed
by the applicable credit card vendor for processing the payment due from the Obligor
(such amount, the “Servicer Credit Card
Processing Cost”) and shall immediately cause all amounts on deposit
therein to be transferred to the Lockbox Account. The Agent may, at any time
direct the Indenture Trustee to cause the Lockbox Bank to restrict the
Servicer’s access and rights to the Credit Card Account, and shall instruct the
Indenture Trustee to instruct the Lockbox Bank to sweep all amounts on deposit
in the Credit Card Account to be transferred to the Lockbox Account on a daily
basis. The Servicer hereby agrees that if such direction is given by the Agent,
the Servicer shall not provide any contrary instruction to the Lockbox Bank
with respect to the Credit Card Account. 

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

                    (d)          For
so long as Bluegreen or any of its Affiliates controls the Resorts, the
manager, related management contract and master marketing and sale contract (if
applicable) for each Resort at all times shall be reasonably satisfactory to
the Noteholders representing a majority of the Outstanding Note Balance of each
Class of Notes. For so long as Bluegreen or any of its Affiliates controls the
Association for a Resort, and Bluegreen or an Affiliate thereof is the manager,
(i) if an amendment or modification to the related management contract and
master marketing and sale contract materially and adversely affects the
Noteholders, then it may only be amended or modified with the prior written
consent of the Noteholders representing a majority of the Outstanding Note
Balance of each Class of Notes, which consent shall not be unreasonably
withheld or delayed and (ii) if an amendment or modification to the related
management contract and master marketing and sale contract does not materially
and adversely affect the Noteholders, 

27

Bluegreen
shall send a copy of such amendment or modification to the Agent with the
Monthly Report to be delivered subsequent to the effective date of such
amendment or modification. 

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

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

                    (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 will be allowed to enter into a lease or finance
arrangement in connection with the lease or purchase of such hardware and
software. 

                    (h)          The
Servicer shall comply in all material respects with the Collection Policy and
the Credit Policy attached hereto as Exhibit J and Exhibit K, respectively, in
regard to each Timeshare Loan. The Servicer shall (i) notify the Agent ten days
prior to any material amendment or change to the Collection Policy or the
Credit Policy and (ii) obtain the Agent’s prior written consent (which consent
will not be unreasonably withheld or delayed) if such amendment or change has a
material and adverse affect on the Noteholders; provided, that the Servicer may
immediately implement any changes (and provide notice to the Agent subsequent 

28

thereto) as
may be required under applicable law from time to time upon the reasonable
determination of the Servicer; and provided, further, that the Servicer shall
deliver a copy of any non-material amendments or changes to the Collection
Policy or the Credit Policy to the Agent with the Monthly Report to be
delivered subsequent to the effective date of such amendments or changes. 

                    (i)          The
Servicer shall comply in all material respects with the terms of the Timeshare
Loans. 

          SECTION
5.4.     Servicer Events of Default. 

                    (a)          If
any Servicer Event of Default shall have occurred and not been waived
hereunder, the Indenture Trustee may, and upon notice from Noteholders
representing a majority of the Outstanding Note Balance of each Class of Notes
shall, terminate, on behalf of the Noteholders, by notice in writing to the
Servicer, all of the rights and obligations of the Servicer, as Servicer under
this Indenture. The Indenture Trustee shall immediately give written notice of
such termination to the Backup Servicer. Unless consented to by the Noteholders
representing a majority of the Outstanding Note Balance of each Class of Notes,
the Issuer may not waive any Servicer Event of Default. 

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

29

written
consent of Noteholders representing a majority of the Outstanding Note Balance
of each Class of Notes. Notwithstanding anything herein to the contrary, in no
event shall the Indenture Trustee or Bluegreen be liable for any Servicing Fee
or for any differential in the amount of the Servicing Fee paid hereunder and
the amount necessary to induce any successor Servicer to assume the obligations
of Servicer under this Indenture. 

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

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

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

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

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

30

          SECTION
5.5.     Accountings; Statements and Reports. 

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

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

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

31

Professional
Ethics of the American Institute of Certified Public Accountants. The Agent
shall agree (prior to the delivery of any report) to the procedures to be
performed by independent public accountants in any of the reports required to
be prepared pursuant to this Section 5.5(c). 

                    (d)          Report
on Proceedings and Servicer Event of Default. (i) Promptly upon a
Responsible Officer of the Servicer’s obtaining Knowledge of any proposed or
pending investigation of it by any Governmental Authority or any court or
administrative proceeding which involves or is reasonably likely to involve the
possibility of materially and adversely affecting the properties, business,
prospects, profits or conditions (financial or otherwise) of the Servicer and
its subsidiaries, as a whole, the Servicer shall send written notice specifying
the nature of such investigation or proceeding and what action the Servicer is
taking or proposes to take with respect thereto and evaluating its merits, or
(ii) immediately upon obtaining Knowledge of the existence of any condition or
event which constitutes a Servicer Event of Default, the Servicer shall send
written notice to the Issuer, the Indenture Trustee and the Agent describing
its nature and period of existence and what action the Servicer is taking or
proposes to take with respect thereto. 

                    (e)          Quarterly
Financial Reports. Within 45 days after the end of each of Servicer’s
(provided the Servicer is Bluegreen or an Affiliate thereof) first three fiscal
calendar periods each year (or, if later, that date by which Bluegreen is
required to file financial statements with the Securities and Exchange
Commission), the Servicer shall deliver to the Agent, unaudited financial
statements of Servicer (provided the Servicer is Bluegreen or an Affiliate thereof)
certified by its chief financial officer as well as, to the extent requested by
the Agent and available to Servicer (provided the Servicer is Bluegreen or an
Affiliate thereof), unaudited bi-annual financial statements of the Association
managed by the Club Managing Entity. 

                    (f)          Audit
Reports. To the extent Bluegreen or its Affiliate is the Servicer, the
Servicer shall deliver to the Indenture Trustee and the Agent promptly upon
receipt thereof, one copy of each other report submitted to the Servicer by its
independent public accountants in connection with any annual, interim or
special audit made by them of the books of the Servicer. 

                    (g)          Other
Reports. To the extent Bluegreen Corporation or its Affiliate is the
Servicer, the Servicer shall deliver to the Indenture Trustee and the Agent,
such other reports, statements, notices or written communications relating to
the Servicer, the Associations, the Resorts or the Additional Approved Resorts as
are available to Servicer and as the Agent may reasonably require. 

          SECTION
5.6.     Records. 

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

32

Servicing
Officer of the Servicer is located (or upon 24 hours’ written notice if an
Event of Default or Servicer Event of Default shall have occurred). 

          SECTION
5.7.     Fidelity Bond and Errors and Omissions
Insurance. 

                    The
Servicer shall maintain or cause to be maintained fidelity bond and errors and
omissions insurance with respect to the Servicer in such form and in amounts as
is customary for institutions acting as custodian of funds in respect of
timeshare loans or receivables on behalf of institutional investors; provided
that such insurance shall be in a minimum amount of $1,000,000 per policy and
shall name the Indenture Trustee as an additional insured. No provision of this
Section 5.7 requiring such fidelity bond or errors and omissions insurance
shall diminish or relieve the Servicer from its duties and obligations as set
forth in this Indenture. The Servicer shall be deemed to have complied with
this provision if one of its respective Affiliates has such fidelity bond or
errors and omissions insurance coverage and, by the terms of such fidelity bond
or errors and omissions insurance policy, the coverage afforded thereunder
extends to the Servicer. Upon a request of the Indenture Trustee, the Servicer
shall deliver to the Indenture Trustee, a certification evidencing coverage
under such fidelity bond and the errors and omissions insurance. Any such
fidelity bond or errors and omissions insurance policy shall not be canceled or
modified in a materially adverse manner without 30 days’ prior written notice
to the Indenture Trustee; provided, that the Servicer agrees to use
commercially reasonable efforts to require the applicable insurer to provide 10
days’ prior written notice of any cancellation or materially adverse modification
initiated by such insurer. 

          SECTION
5.8.     Merger or Consolidation of the Servicer.

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

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

33

          SECTION
5.9.       Sub-Servicing. 

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

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

          SECTION
5.10.     Servicer Resignation. 

                    The
Servicer shall not resign from the duties and obligations hereby imposed on it
under this Indenture unless and until (i) a successor servicer, acceptable to
the Issuer, the Indenture Trustee and the Noteholders representing a majority
of the Outstanding Note Balance of each Class of Notes, enters into an
agreement in form and substance satisfactory to the Indenture Trustee and the
Noteholders representing a majority of the Outstanding Note Balance of each
Class of Notes, which contains an assumption by such successor servicer of the
due and punctual performance and observance of each covenant and condition to
be performed or observed by the Servicer under this Indenture from and after
the date of assumption, and (ii) the Issuer, the Indenture Trustee and
Noteholders representing a majority of the Outstanding Note Balance of each
Class of Notes consent to the assumption of the duties, obligations and
liabilities of this Indenture by such successor Servicer. Upon such
resignation, the Servicer shall comply with Section 5.4(b) hereunder. 

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

          SECTION
5.11.     Fees and Expenses. 

                    As
compensation for the performance of its obligations under this Indenture, the
Servicer shall be entitled to receive on each Payment Date, from amounts on
deposit in the Collection Account and in the priorities described in Sections
3.2(a) and 3.4 hereof, the Servicing Fee and any Additional Servicing Compensation.
Other than Liquidation Expenses, 

34

the Servicer
shall pay all expenses incurred by it in connection with its servicing
activities hereunder. 

          SECTION
5.12.     Access to Certain Documentation. 

                    Upon
ten Business Days’ prior written notice (or, one Business Day’s prior written
notice after the occurrence and during the continuance of an Event of Default
or a Servicer Event of Default), the Servicer will, from time to time during
regular business hours, as requested by the Issuer, the Indenture Trustee or
any Noteholder and, prior to the occurrence of a Servicer Event of Default, at
the expense of the Issuer or such Noteholder and upon the occurrence and
continuance of a Servicer Event of Default, at the expense of the Servicer,
permit the Issuer, the Indenture Trustee or any Noteholder or its agents or
representatives (i) to examine and make copies of and abstracts from all books,
records and documents (including, without limitation, computer tapes and disks)
in the possession or under the control of the Servicer relating to the
servicing of the Timeshare Loans serviced by it and (ii) to visit the offices
and properties of the Servicer for the purpose of examining such materials
described in clause (i) above, and to discuss matters relating to the Timeshare
Loans with any of the officers, employees or accountants of the Servicer having
knowledge of such matters. Nothing in this Section 5.12 shall affect the
obligation of the Servicer to observe any applicable law prohibiting disclosure
of information regarding the Obligors, and the failure of the Servicer to
provide access to information as a result of such obligation shall not
constitute a breach of this Section 5.12. 

          SECTION
5.13.     No Offset. 

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

          SECTION
5.14.     Account Statements. 

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

          SECTION
5.15.     Indemnification; Third Party Claim. 

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

35

servicing of
the Timeshare Loans by the Servicer, the Servicer shall assume, with the
consent of the Indenture Trustee, the defense of any such claim and pay all
expenses in connection therewith, including reasonable counsel fees, and
promptly pay, discharge and satisfy any judgment or decree which may be entered
against it. This Section 5.15 shall survive the termination of this Indenture
or the resignation or removal of the Servicer hereunder. 

          SECTION
5.16.     Backup Servicer. 

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

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

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

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

                    (e)          Termination
of Backup Servicer. Notwithstanding anything to the contrary herein, the
Indenture Trustee shall have the right to remove the Backup Servicer with or
without cause at any time and replace the Backup Servicer pursuant to the
provisions of the Backup Servicing Agreement. In the event that the Indenture
Trustee shall exercise its rights to remove and replace Concord Servicing
Corporation as Backup Servicer or Concord Servicing Corporation shall have
terminated the Backup Servicing Agreement in accordance with the terms thereof,
Concord Servicing Corporation shall have no further obligation to perform the
duties of the Backup Servicer under this Indenture. In the event of a
termination of the Backup Servicing Agreement, the Indenture Trustee shall
appoint a successor Backup Servicer reasonably 

36

acceptable to
the Indenture Trustee and with the approval of the Agent at the written
direction of the Required Purchasers. Upon the termination or resignation of
the Backup Servicer, the Indenture Trustee shall be deemed to represent,
warrant and covenant that it will service or engage a subservicer to perform
each of the servicing duties and responsibilities described in this Indenture. 

          SECTION
5.17.     Aruba Notices. Within 30 days of the
related Funding Date, the Servicer shall confirm that notices have been mailed
out to each Obligor under a Timeshare Loan with respect to any Resort in the
country of Aruba that such Timeshare Loan has been transferred and assigned to
the Issuer and that the Issuer has in turn, pledged such Timeshare Loan to the
Indenture Trustee, in trust, for the benefit of the Noteholders. Such notice
may include any notice or notices that the Aruba Originator’s predecessors in
title to the Timeshare Loan may give to the same Obligor with respect to any
transfers and assignments of the Timeshare Loan by such predecessors. Such
notice shall be in the form attached hereto as Exhibit H, as the same
may be amended, revised or substituted by the Indenture Trustee and the
Servicer from time to time. 

          SECTION
5.18.     Recordation. The Servicer agrees to
cause all evidences of recordation of the original Mortgage to be delivered to
the Custodian to be held as part of the Timeshare Loan Files. Upon the
direction of the Noteholders, the Indenture Trustee shall cause either the
Custodian or a third party appointed by the Indenture Trustee to complete the
assignments of mortgage and (at the Servicer’s expense) record such assignments
of mortgage in all appropriate jurisdictions. 

ARTICLE VI.

EVENTS OF DEFAULT; REMEDIES

          SECTION
6.1.       [RESERVED]. 

          SECTION
6.2.       Acceleration of Maturity; Rescission and
Annulment. 

                    (a)          Upon
the occurrence and continuance of an Event of Default, if (i) such Event of
Default of the kind specified in subparagraph (d) or (e) of the definition of
Event of Default occurs or (ii) an Event of Default of the kind specified in
subparagraph (a) of the definition of Event of Default occurs and either (x)
the Agent has, in its good faith judgment, determined that the value of the
assets comprising the Trust Estate is less than the Aggregate Outstanding Note
Balance or (y) such Event of Default continues for two consecutive Payment
Dates, then each Class of Notes shall automatically become due and payable at
its Outstanding Note Balance together with all accrued and unpaid interest
thereon. 

                    (b)          Upon
the occurrence and continuance of an Event of Default, if such Event of Default
is of the kind specified in subparagraph (a) of the definition of Event of
Default (other than as described in Section 6.2(a) hereof), the Indenture
Trustee shall, upon notice from Noteholders representing a majority of the
Outstanding Note Balance of the most senior Class of Notes then Outstanding
(and, if payment of interest and principal on the most senior Class of Notes
then Outstanding is current, the consent of the Noteholders representing a
majority of the 

37

Outstanding
Note Balance of the most senior Class of Notes which has failed to receive one
or more payments of interest or principal), declare each Class of Notes to be
immediately due and payable at its Outstanding Note Balance plus all accrued
and unpaid interest thereon. 

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

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

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

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
 

	
 

	
(1)

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

	
 

	
 

	
 

	
 

	
 

	
 

	
(2)

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

	
 

	
 

	
 

	
 

	
 

	
 

	
(3)

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

	
 

	
 

	
 

	
 

	
 

	
   and 

	
 

	
 

	
 

	
 

	
 

	
        (ii)     all
 Events of Default with respect to the Notes, other than the non-payment of
 the Outstanding Note Balance of each Class of Notes which became 

38

	
 

	
 

	
 

	
due solely
 by such declaration of acceleration, have been cured or waived as provided in
 Section 6.13 hereof. 

                    (f)          An
automatic acceleration under Section 6.2(a) hereof may only be rescinded and
annulled by Noteholders representing a majority of the Outstanding Note Balance
of each Class of Notes then Outstanding. 

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

          SECTION
6.3.     Remedies. 

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

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

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

                    (d)          Subject
to the provisions set forth herein, if an Event of Default occurs and is
continuing, the Indenture Trustee may, in its discretion, and at the
instruction of the Noteholders representing a majority of the Outstanding Note
Balance of each Class of Notes shall, proceed to protect and enforce its rights
and the rights of the Noteholders by such appropriate judicial or other
proceedings as the Indenture Trustee shall deem most effectual to protect and
enforce any such rights, whether for the specific enforcement of any covenant or
agreement in this Indenture or in aid of the exercise of any power granted
herein, or to enforce any other proper remedy. The Indenture Trustee shall
notify the Issuer, the Agent, the Servicer and the Noteholders of any such
action. 

                    (e)          If
the Indenture Trustee shall have received instructions, within 45 days from the
date notice pursuant to Section 6.3(a) hereof is first given, from Noteholders
representing at least 66-2/3% of the Outstanding Note Balance of each Class of
Notes that such Persons approve of or request the liquidation of the Trust
Estate, the Indenture Trustee shall to the extent lawful, promptly sell,
dispose of or otherwise liquidate all of the Trust Estate in a 

39

commercially
reasonable manner and on commercially reasonable terms, which shall include the
solicitation of competitive bids from third parties including any Noteholder
(other than Bluegreen or any Affiliates thereof), such bids to be approved by
the Noteholders representing a majority of the Outstanding Note Balance of each
Class of Notes. The Indenture Trustee may obtain a prior determination from any
conservator, receiver or liquidator of the Issuer that the terms and manner of
any proposed sale, disposition or liquidation are commercially reasonable.
Notwithstanding anything to the contrary herein, unless such bidding has been
approved in advance by a majority of the Noteholders, neither Bluegreen nor any
of its Affiliates may make a bid in connection with the disposition of the
Timeshare Loans in accordance with this Section 6.3(e). 

          SECTION
6.4.     Indenture Trustee May File Proofs of Claim.

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

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

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

40

Estate or to
authorize the Indenture Trustee to vote in respect of the claim of any
Noteholder in any such proceeding. 

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

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

          SECTION
6.6.     Application of Money Collected. 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

	
          (vi)       to
 the Trust Owner, any accrued and unpaid Trust Owner Fees;

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

	
          (ix)       to
 the Agent and the Placement Agent, any accrued and unpaid Fees; 

41

	
 

	
 

	
 

	
          (x)          on
 a pari passu basis, to the Class A Noteholders holding LIBOR Notes and CP
 Notes, the Class A LIBOR Interest Distribution Amount and Class A CP Interest
 Distribution Amount, respectively; 

	
 

	
 

	
 

	
          (xi)         on
 a pari passu basis, to the Class B Noteholders holding LIBOR Notes and CP
 Notes, the Class B LIBOR Interest Distribution Amount and Class B CP Interest
 Distribution Amount, respectively; 

	
 

	
 

	
 

	
          (xii)        on
 a pari passu basis, to the Class C Noteholders holding LIBOR Notes and CP
 Notes, the Class C LIBOR Interest Distribution Amount and Class C CP Interest
 Distribution Amount, respectively; 

	
 

	
 

	
 

	
          (xiii)       on
 a pari passu basis, to the Class D Noteholders holding LIBOR Notes and CP
 Notes, the Class D LIBOR Interest Distribution Amount and Class D CP Interest
 Distribution Amount, respectively; 

	
 

	
 

	
 

	
          (xiv)       on
 a pari passu basis, to the Class E Noteholders holding LIBOR Notes and CP
 Notes, the Class E LIBOR Interest Distribution Amount and Class E CP Interest
 Distribution Amount, respectively; 

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

	
          (xxi)       to
 the Class A Noteholders, the Class B Noteholders, the Class C Noteholders,
 the Class D Noteholders and the Class E Noteholders, to the extent
 applicable, amounts specified by the Agent and the Servicer as payable to
 such Noteholders pursuant to Sections 6.1, 6.2 and 6.3 of the Note Funding
 Agreement; 

	
 

	
 

	
 

	
          (xxii)      any
 amounts due and payable by the Issuer under the Transaction Documents, but
 not paid above (including, but not limited to, amounts owed by the Issuer in
 respect of its indemnification obligations); and 

42

	
 

	
 

	
 

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

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

	
               (vi)      to
 the Trust Owner, any accrued and unpaid Trust Owner Fees; 

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

	
               (ix)      to
 the Agent, any accrued and unpaid Fees; 

	
 

	
 

	
 

	
               (x)       on
 a pari passu basis, to the Class A Noteholders holding LIBOR Notes and CP
 Notes, the Class A LIBOR Interest Distribution Amount and the Class A CP
 Interest Distribution Amount, respectively; 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
               (xii)     on
 a pari passu basis, to the Class B Noteholders holding LIBOR Notes and CP
 Notes, the Class B LIBOR Interest Distribution Amount and the Class B CP
 Interest Distribution Amount, respectively; 

	
 

	
 

	
 

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

43

	
 

	
 

	
 

	
               (xiv)       on
 a pari passu basis, to the Class C Noteholders holding LIBOR Notes and CP
 Notes, the Class C LIBOR Interest Distribution Amount and the Class C CP
 Interest Distribution Amount, respectively; 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
               (xvi)       on
 a pari passu basis, to the Class D Noteholders holding LIBOR Notes and CP
 Notes, the Class D LIBOR Interest Distribution Amount and the Class D CP
 Interest Distribution Amount, respectively; 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
               (xviii)     on
 a pari passu basis, to the Class E Noteholders holding LIBOR Notes and CP
 Notes, the Class E LIBOR Interest Distribution Amount and the Class E CP
 Interest Distribution Amount, respectively; 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
               (xx)         to
 the Class A Noteholders, the Class B Noteholders, the Class C Noteholders,
 the Class D Noteholders and the Class E Noteholders, to the extent applicable,
 amounts specified by the Agent and the Servicer as payable to such
 Noteholders pursuant to Sections 6.1, 6.2 and 6.3 of the Note Funding
 Agreement; 

	
 

	
 

	
 

	
               (xxi)        any
 amounts due and payable by the Issuer under the Transaction Documents, but not
 paid above (including, but not limited to, amounts owed by the Issuer in
 respect of its indemnification obligations); and 

	
 

	
 

	
 

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

          SECTION
6.7.     Limitation on Suits. 

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

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

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

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

44

                    (d)     no
direction inconsistent with such written request has been given to the
Indenture Trustee during such 30-day period by the Noteholders representing a
majority of the Outstanding Note Balance of each Class of Notes Outstanding; 

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

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

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

          SECTION
6.9.     Restoration of Rights and Remedies. 

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

          SECTION
6.10.     Rights and Remedies Cumulative.

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

45

          SECTION
6.11.     Delay or Omission Not Waiver. 

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

          SECTION
6.12.     Control by Agent. 

                    Until
such time as the conditions specified in Sections 11.1(a)(i) and (ii) hereof
have been satisfied in full, the Agent shall have the right to either direct
the time, method and place of conducting any proceeding for any remedy
available to the Indenture Trustee, or directly exercise any trust or power
conferred on the Indenture Trustee, with respect to the Notes. The parties to
this Indenture acknowledge and agree to the foregoing. Notwithstanding the
foregoing, if the Agent shall elect to direct the Indenture Trustee rather than
directly exercising such rights: 

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

          SECTION
6.13.     Waiver of Events of Default. 

                     (a)     Unless
a Sequential Pay Event shall have occurred, the Noteholders representing a
majority of the Outstanding Note Balance of each Class of Notes may, by one or
more instruments in writing, waive any Event of Default hereunder and its
consequences, except a continuing Event of Default: 

	
 

	
 

	
 

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

	
 

	
 

	
 

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

                     (b)     A
copy of each waiver pursuant to Section 6.13(a) hereof shall be furnished by
the Issuer to the Indenture Trustee and each Noteholder. Upon any such waiver, 

46

such Event of
Default shall cease to exist and shall be deemed to have been cured, for every
purpose of this Indenture; but no such waiver shall extend to any subsequent or
other Event of Default or impair any right consequent thereon. 

          SECTION
6.14.     Undertaking for Costs. 

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

          SECTION
6.15.     Waiver of Stay or Extension Laws. 

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

          SECTION
6.16.     Sale of Trust Estate. 

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

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

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

	
 

	
 

	
 

	
            (i)     any
 one or more Noteholders (other than Bluegreen or any Affiliates thereof
 unless consented to by a majority of the Noteholders) may bid for and 

47

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

          SECTION
6.17.     Action on Notes. 

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

          SECTION
6.18.     Performance and Enforcement of Certain
Obligations. 

                    Promptly
following a request from the Indenture Trustee, the Issuer shall take all such
lawful action as the Indenture Trustee may request to compel or secure the
performance and observance by the Depositor, the Club Originator and the Servicer,
as applicable, of each of their respective obligations to the Issuer under or
in connection with the Sale Agreement and any 

48

other
Transaction Document and to exercise any and all rights, remedies, powers and
privileges lawfully available to the Issuer under or in connection with the
Sale Agreement or any other Transaction Document to the extent and in the
manner directed by the Indenture Trustee, including the transmission of notices
of default on the part of the Depositor, the Club Originator or the Servicer
thereunder and the institution of legal or administrative actions or
proceedings to compel or secure performance by the Depositor, the Club
Originator or the Servicer of each of their obligations under the Sale
Agreement and the other Transaction Documents. 

ARTICLE VII.

THE INDENTURE TRUSTEE

          SECTION
7.1.     Certain Duties.  

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

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

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

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

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

49

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

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

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

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

          SECTION
7.2.     Notice of Events of Default. 

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

          SECTION
7.3.     Certain Matters Affecting the Indenture
Trustee. 

                    Subject
to the provisions of Section 7.1 hereof: 

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

50

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

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

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

                    (e)     Prior
to the occurrence of an Event of Default or after the curing of all Events of
Default which may have occurred, the Indenture Trustee shall not be bound to
make any investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request, consent,
order, approval, bond or other paper document, unless requested in writing so
to do by Noteholders representing a majority of the Outstanding Note Balance of
each Class of Notes; provided, however, that if the payment within a reasonable
time to the Indenture Trustee of the costs, expenses or liabilities likely to
be incurred by it in the making of such investigation is, in the reasonable
opinion of the Indenture Trustee, not reasonably assured to the Indenture
Trustee by the security afforded to it by the terms of this Indenture, the
Indenture Trustee may require reasonable indemnity against such cost, expense
or liability as a condition to so proceeding. The reasonable expense of every
such examination shall be paid by the Servicer or, if paid by the Indenture
Trustee, shall be reimbursed by the Servicer upon demand;  

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

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

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

                    (a)     The
Indenture Trustee makes no representations as to the validity or sufficiency of
this Indenture or any Transaction Document, the Notes (other than the authentication
thereof) or of any Timeshare Loan. The Indenture Trustee shall not be 

51

accountable
for the use or application by the Issuer of funds paid to the Issuer in
consideration of conveyance of the Timeshare Loans and related assets to the
Trust Estate. 

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

          SECTION
7.5.      Indenture Trustee May Own Notes. 

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

          SECTION
7.6.      Indenture Trustee’s Fees and Expenses.

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

          SECTION
7.7.      Eligibility Requirements for Indenture
Trustee. 

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

52

          SECTION
7.8.      Resignation or Removal of Indenture
Trustee. 

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

                    (b)          
If at any time the Indenture Trustee shall cease to be eligible in accordance
with the provisions of Section 7.7 hereof and shall fail to resign after
written request therefor by the Issuer, or if at any time the Indenture Trustee
shall be legally unable to act, fails to perform in any material respect its
obligations under this Indenture, or shall be adjudged a bankrupt or insolvent,
or a receiver of the Indenture Trustee or of its property shall be appointed,
or any public officer shall take charge or control of the Indenture Trustee or
of its property or affairs for the purpose of rehabilitation, conservation or
liquidation, then the Issuer or Noteholders representing a majority of the
Outstanding Note Balance of each Class of Notes may direct the Issuer to remove
the Indenture Trustee. If it removes the Indenture Trustee under the authority
of the immediately preceding sentence, the Issuer shall promptly appoint a
successor Indenture Trustee not objected to by Noteholders representing a
majority of the Outstanding Note Balance of each Class of Notes, within 30 days
after prior written notice, by written instrument, in sextuplicate, one
counterpart of which instrument shall be delivered to each of the Issuer, the
Servicer, the Noteholders, the Agent, the successor Indenture Trustee and the
predecessor Indenture Trustee. 

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

          SECTION
7.9.      Successor Indenture Trustee. 

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

53

Trustee shall
execute and deliver such instruments and do such other things as may reasonably
be required for the full and certain vesting and confirmation in the successor
Indenture Trustee of all such rights, powers, duties and obligations. 

                    (b)          
In case of the appointment hereunder of a successor Indenture Trustee with
respect to the Notes, the Issuer, the retiring Indenture Trustee and each
successor Indenture Trustee with respect to the Notes shall execute and deliver
an indenture supplemental hereto wherein each successor Indenture Trustee shall
accept such appointment and which (i) shall contain such provisions as shall be
necessary or desirable to transfer and confirm to, and to vest in, each
successor Indenture Trustee all the rights, powers, trusts and duties of the
retiring Indenture Trustee with respect to the Notes to which the appointment
of such successor Indenture Trustee relates, (ii) if the retiring Indenture
Trustee is not retiring with respect to all Notes, shall contain such
provisions as shall be deemed necessary or desirable to confirm that all the
rights, powers, trusts and duties of the retiring Indenture Trustee with
respect to the Notes as to which the retiring Indenture Trustee is not retiring
shall continue to be vested in the retiring Indenture Trustee, and (iii) shall
add to or change any of the provisions of this Indenture as shall be necessary
to provide for or facilitate the administration of the Trust Estate hereunder
by more than one Indenture Trustee, it being understood that nothing herein or
in such supplemental indenture shall constitute such Indenture Trustees
co-trustees of the same allocated trust and that each such Indenture Trustee
shall be trustee of a trust or trusts hereunder separate and apart from any
trust or trusts hereunder administered by any other such Indenture Trustee; and
upon the execution and delivery of such supplemental indenture the resignation
or removal of the retiring Indenture Trustee shall become effective to the
extent provided therein and each such successor Indenture Trustee, without any
further act, deed or conveyance, shall become vested with all the rights,
powers, trusts and duties of the retiring Indenture Trustee with respect to the
Notes to which the appointment of such successor Indenture Trustee relates;
but, on request of the Issuer or any successor Indenture Trustee, such retiring
Indenture Trustee shall duly assign, transfer and deliver to such successor
Indenture Trustee all property and money held by such retiring Indenture
Trustee hereunder with respect to the Notes of that or those to which the
appointment of such successor Indenture Trustee relates. 

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

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

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

54

          SECTION
7.10.      Merger or Consolidation of Indenture
Trustee. 

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

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

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

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

55

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

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

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

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

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

          SECTION
7.12.      Paying Agent and Note Registrar Rights.

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

          SECTION
7.13.      Authorization. 

                    (a)          
The Issuer has authorized and directed the Indenture Trustee to enter into the
Lockbox Agreement. Pursuant to the Lockbox Agreement, the Indenture Trustee
agrees to cause to be established and maintained an account (the “Lockbox Account”) for the benefit of the
Noteholders. The Lockbox Account is titled as follows “U.S. Bank National
Association, as 

56

Indenture
Trustee of BXG Timeshare Trust I–Blocked Account”, Timeshare Loan-Backed Notes,
Series I”. The Indenture Trustee has been authorized and directed to act as
titleholder of the Lockbox Account in accordance with the terms of the Lockbox
Agreement for the benefit of the Noteholders with interests in the funds on
deposit in such accounts. In addition, the Indenture Trustee has been
authorized to enter into, execute, deliver and perform under, each of the
applicable Transaction Documents executed on the Closing Date and is hereby
authorized to enter into, execute, deliver and perform under, each of the
applicable Transaction Documents executed on the Amendment Date. The Lockbox
Bank will be required to transfer and will be permitted to withdraw funds from
the Lockbox Account in accordance with the Lockbox Agreement. 

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

          SECTION
7.14.      Maintenance of Office or Agency. 

                    The
Indenture Trustee will maintain in the Borough of Manhattan, the City of New
York, an office or agency where Notes may be surrendered for registration of
transfer or exchange, and where notices and demands to or upon the Indenture
Trustee in respect of the Notes and this Indenture may be served. The Indenture
Trustee will give prompt written notice to the Issuer, the Servicer and the
Noteholders of the location, and of any change in the location, of any such
office or agency or shall fail to furnish the Issuer or the Servicer with the
address thereof, such surrenders, notices and demands may be made or served at
the Corporate Trust Office, and the Issuer hereby appoints the Indenture
Trustee as its agent to receive all such surrenders, notices and demands. 

ARTICLE VIII.

COVENANTS OF THE ISSUER

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

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

          SECTION
8.2.      Eligible Timeshare Loan. 

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

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

                    (a)          
All payments of amounts due and payable with respect to any Notes that are to
be made from amounts withdrawn from the Trust Accounts pursuant to Sections 3.4
or 6.6 hereof shall be made on behalf of the Issuer by the Indenture Trustee,
and no amounts so withdrawn from the Collection Account for payments of Notes
shall be paid over to the Issuer 

57

under any
circumstances, except as provided in this Section 8.3, in Section 3.4 or
Section 6.6 hereof, as the case may be. 

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

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

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

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
 

	
          (iii)          
 immediately resign as a Paying Agent and forthwith pay to the Indenture
 Trustee all sums held by it in trust for the payment of Notes if at any time

58

	
 

	
 

	
 

	
 

	
 

	
it ceases to
 meet the standards required to be met by a Paying Agent at the time of its
 appointment; and 

	
 

	
 

	
 

	
 

	
 

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

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

          SECTION
8.4.      Existence; Merger; Consolidation, etc.

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

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

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

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

          SECTION
8.5.      Protection of Trust Estate; Further
Assurances. 

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

59

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
 

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

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

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

60

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

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

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

          SECTION
8.6.      Additional Covenants. 

                    (a)          
The Issuer will not: 

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
 

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

61

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
 

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

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

62

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

          SECTION
8.7. Taxes. 

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

          SECTION
8.8. Restricted Payments. 

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

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

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

          SECTION
8.10. Further Instruments and Acts. 

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

ARTICLE IX.

SUPPLEMENTAL INDENTURES

63

          SECTION
9.1. Supplemental Indentures. 

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

	
 

	
 

	
 

	
 

	
 

	
       (i)           
without the consent of any Noteholder; (x) to correct or amplify the
description of any property at any time subject to the Lien of this
Indenture, or to better assure, convey and confirm unto the Indenture Trustee
any property subject or required to be subjected to the Lien of this
Indenture; provided, such action pursuant to this clause (i) shall not
adversely affect the interests of the Noteholders in any respect; or  

	
 

	
 

	
 

	
 

	
 

	
(1)

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

	
 

	
 

	
 

	
 

	
 

	
 

	
(2)

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

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

          SECTION
9.2. Supplemental Indentures with Consent of Noteholders. 

                    (a)          
With the consent of Noteholders representing a majority of the Outstanding Note
Balance of each Class of Notes then Outstanding and by Act of said Noteholders
delivered to the Issuer and the Indenture Trustee, the Issuer and the Indenture
Trustee may, pursuant to an Issuer Order, enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of this Indenture or of
modifying in any manner the rights of the Noteholders under this Indenture; provided,
that no supplemental indenture (including any supplemental indenture to be
entered into pursuant to Section 9.1 hereof) shall, without the consent of the
Noteholder of each Outstanding Note affected thereby, 

	
 

	
 

	
 

	
       (i)          
 change the Stated Maturity or Payment Date of any Note or the amount of
 principal payments or interest payments or any other amount due or to become
 due on any Payment Date with respect to any Note, or change the priority of
 payment thereof as set forth herein, or reduce the principal amount thereof
 or the Note Rate thereon, or change the place of payment where, or the coin
 or currency in 

64

	
 

	
 

	
 

	
which, any
 Note or the interest thereon is payable, or impair the right to institute
 suit for the enforcement of any such payment on or after the Stated Maturity;

	
 

	
 

	
 

	
       (ii)          
 reduce the percentage of the Outstanding Note Balance, the consent of the
 Noteholders of which is required for any supplemental indenture, for any
 waiver of compliance with provisions of this Indenture or Events of Default
 and their consequences; 

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

	
       (vi)          
 modify or change Section 2.4 or Article XV hereof; 

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

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

          SECTION
9.3.     Execution of Supplemental Indentures. 

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

          SECTION
9.4.     Effect of Supplemental Indentures. 

                    Upon
the execution of any supplemental indenture under this Article IX, this
Indenture shall be modified in accordance therewith, and such supplemental
indenture shall form 

65

a part of this
Indenture for all purposes; and every Noteholder of Notes theretofore or
thereafter authenticated and delivered hereunder shall be bound thereby. 

          SECTION
9.5.     Reference in Notes to Supplemental Indentures. 

                    Notes
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article may, and shall if required by the Indenture Trustee,
bear a notation in form approved by the Indenture Trustee as to any matter
provided for in such supplemental indenture. New Notes so modified as to
conform, in the opinion of the Indenture Trustee and the Issuer, to any such
supplemental indenture may be prepared and executed by the Issuer and
authenticated and delivered by the Indenture Trustee in exchange for
Outstanding Notes. 

ARTICLE X.

BORROWINGS

          SECTION
10.1.     Optional Borrowings. (a) On any Business Day prior to the Facility
Termination Date (each a “Funding Date”),
and subject to satisfaction of the following conditions, additional amounts may
be borrowed or reborrowed by the Issuer under the Notes (a “Borrowing”) and from the Committed
Purchasers under the Note Funding Agreement: 

	
 

	
 

	
 

	
          (i)          
 the Custodian shall have delivered to the Indenture Trustee and the Agent the
 Custodian’s Certification pursuant to the Custodial Agreement with respect to
 the Timeshare Loan Documents related to the Timeshare Loans being purchased
 by the Depositor and the Issuer on such Funding Date; 

	
 

	
 

	
 

	
          (ii)          
 no Event of Default has occurred and is continuing and no such event would
 result from the conveyance of such Timeshare Loans under the Purchase
 Agreement and the Sale Agreement or hereunder; 

	
 

	
 

	
 

	
          (iii)         
 after giving effect to the purchase and transfer of Timeshare Loans by the
 Depositor and the Issuer on such Funding Date, the Outstanding Note Balance
 shall not exceed the Maximum Facility Balance and there shall not be a
 Borrowing Base Deficiency; 

	
 

	
 

	
 

	
          (iv)          
 after giving effect to the purchase and transfer of Timeshare Loans by the
 Depositor and the Issuer on such Funding Date, each Hedge Agreement with
 Qualified Hedge Counterparties shall be in full force and effect; 

	
 

	
 

	
 

	
          (v)          
 no Authorized Officer of the Indenture Trustee has actual knowledge or has
 received notice on or prior to such Funding Date that any conditions to such
 transfer have not been fulfilled and the Indenture Trustee shall have
 received such other documents, opinions, certificates and instruments as the
 Indenture Trustee may request; 

	
 

	
 

	
 

	
          (vi)          the Servicer shall deliver to the Agent and the Indenture Trustee, a
 Borrowing Notice; and 

66

	
 

	
 

	
 

	
          (vii)          
 each of the conditions set forth in the Note Funding Agreement shall have
 been satisfied. 

                    (b)          
Funding Dates shall not occur more
frequently than once every calendar month unless otherwise approved by the
Agent. Notice of any Borrowing shall be given by the Issuer to the Agent as
provided for in the Note Funding Agreement. 

ARTICLE XI.

SATISFACTION AND DISCHARGE

          SECTION
11.1.     Satisfaction and Discharge of Indenture.

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

                          (i)        either:

	
 

	
 

	
 

	
 

	
 

	
 

	
(1)

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

	
 

	
 

	
 

	
 

	
 

	
 

	
(2)

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

	
 

	
 

	
 

	
 

	
 

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

	
 

	
 

	
 

	
 

	
 

	
      (iii)         
 the Issuer has delivered to the Indenture Trustee an Officer’s Certificate
 and an Opinion of Counsel, each stating that all conditions precedent

67

	
 

	
 

	
 

	
herein
 provided for relating to the satisfaction and discharge of this Indenture
 have been complied with. 

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

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

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

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

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

          SECTION
11.3.     Trust Termination Date. 

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

ARTICLE XII.

REPRESENTATIONS AND WARRANTIES AND COVENANTS

          SECTION
12.1.     Representations and Warranties of the Issuer. 

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

                    (a)          
Organization and Good Standing. The Issuer has been duly formed and is
validly existing and in good standing under the laws of the State of Delaware,
with power and authority to own its properties and to conduct its business as
presently conducted and has the 

68

power and
authority to own and convey all of its properties and to execute and deliver
this Indenture and the Transaction Documents and to perform the transactions
contemplated hereby and thereby; 

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

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

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

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

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

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

69

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

          SECTION
12.2.     Representations and Warranties of the
Servicer. 

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

                    (a)          Organization
and Authority. The Servicer: 

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

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

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

70

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

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

                    (f)          Taxes.
Other than as disclosed on Schedule 12.2(e), the Servicer has filed all tax
returns (federal, state and local) which are required to be filed and has paid
all taxes related thereto, other than those which are being contested in good
faith or where the failure to file or pay would not have a material adverse
effect on the Servicer’s activities or its ability to perform its obligations
under the Transaction Documents. 

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

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

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

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

                    (k)          Insolvency.
The Servicer is solvent. Prior to the date hereof, the Servicer did not, and is
not about to, engage in any business or transaction for which any property 

71

remaining with
the Servicer would constitute an unreasonably small amount of capital. In
addition, the Servicer has not incurred debts that would be beyond the
Servicer’s ability to pay as such debts matured. 

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

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

                    (n)          Information.
No document, certificate or report furnished by the Servicer, in writing,
pursuant to this Indenture or in connection with the transactions contemplated
hereby, contains or will contain when furnished any untrue statement of a material
fact or fails or will fail to state a material fact necessary in order to make
the statements contained therein, in light of the circumstances under which
they were made, not misleading. Other than as disclosed on Schedule 12.2(e)
hereto, there are no facts relating to the Servicer as of the Amendment Date
which when taken as a whole, materially adversely affect the financial
condition or assets or business of the Servicer, or which may impair the
ability of the Servicer to perform its obligations under this Indenture, which
have not been disclosed herein or in the certificates and other documents
furnished by or on behalf of the Servicer pursuant hereto or thereto
specifically for use in connection with the transactions contemplated hereby or
thereby. 

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

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

                    (q)          Credit
Policy and Collection Policy. Each of the Credit Policy and the Collection
Policy attached hereto as Exhibit J and Exhibit K, respectively, fairly
represent the policies of the Servicer and, to the best knowledge of the
Servicer, each is materially consistent with the customary standard of prudent
servicers of loans secured by timeshare interests (it being understood that the
Servicer does not review credit bureau reports or credit scores issued by Fair
Isaacs & Company prior to loan origination). 

72

          SECTION
12.3.     Representations and Warranties of the
Indenture Trustee. 

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

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

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

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

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

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

                    (f)          No
litigation is pending or, to the best of the Indenture Trustee’s knowledge,
threatened against the Indenture Trustee that, if determined adversely to the
Indenture Trustee, would prohibit the Indenture Trustee from entering into any
Transaction Document to which it is a party or, in the Indenture Trustee’s good
faith and reasonable 

73

judgment, is
likely to materially and adversely affect the ability of the Indenture Trustee
to perform its obligations under any Transaction Document to which it is a
party. 

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

          SECTION
12.4.     Multiple Roles. 

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

          SECTION
12.5.     [Reserved]. 

          SECTION
12.6.     Covenants of the Club Trustee. 

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

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

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

	
 

	
 

	
 

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

	
 

	
 

	
 

	
          (ii)         Ensure
 that, to the extent that it shares the same officers or other employees as
 any of its stockholders, beneficiaries or Affiliates, the salaries of and the
 expenses related to providing benefits to such officers and other employees
 shall be fairly allocated among such entities, and each 

74

	
 

	
 

	
 

	
such entity
 shall bear its fair share of the salary and benefit costs associated with all
 such common officers and employees. 

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

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

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

75

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

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

          SECTION
12.7.     Representations and Warranties of the
Backup Servicer. 

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

                    (a)          Corporate
Representations. 

76

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

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

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

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

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

77

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

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

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

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

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

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

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

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

78

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

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

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

ARTICLE XIII.

MISCELLANEOUS

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

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

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

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

          SECTION
13.2.     Statements Required in Certificate or
Opinion. 

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

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

79

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

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

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

          SECTION
13.3.     Notices. 

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

	
 

	
 

	
 

	
If to the
  Issuer: 

	
 

	
 

	
 

	
BXG
  Timeshare Trust I

	
 

	
c/o
  Wilmington Trust Company

	
 

	
Rodney
  Square North

	
 

	
1100 North
  Market Street

	
 

	
Wilmington,
  Delaware 19890-0001

	
 

	
Attention:
  Corporate Trust Administration

	
 

	
Fax: (302)
  636-4140 

	
 

	
 

	
 

	
With a copy
  to: 

	
 

	
 

	
 

	
Weinstock
  & Scavo P.C.

	
 

	
3405
  Piedmont Road, N.E.

	
 

	
Suite 300

	
 

	
Atlanta,
  Georgia 30305

	
 

	
Attention:
  Mark I. Sanders, Esq.

	
 

	
Fax: (404)
  231-1618 

	
 

	
 

	
 

	
If to the
  Club Trustee: 

	
 

	
 

	
 

	
Vacation
  Trust, Inc. 

	
 

	
4950
  Communication Avenue

	
 

	
Suite 900

	
 

	
Boca Raton,
  Florida 33431

	
 

	
Attention:
  James R. Martin, Esq.

	
 

	
Fax: (561)
  912-8299 

80

	
 

	
 

	
 

	
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 

	
 

	
 

	
 

	
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)
  281-3141

	
 

	
Attention:
  Frederick G. Pink, Esq. 

	
 

	
 

	
 

	
If to the
  Indenture Trustee and Paying Agent: 

	
 

	
 

	
 

	
U.S. Bank
  National Association

	
 

	
60
  Livingston Avenue

	
 

	
EP-MN-WS3D

	
 

	
St. Paul,
  Minnesota 55107 

	
 

	
Attention: Corporate Trust Services/Attn: BXG Timeshare Trust I

	
 

	

Fax: (651)495-8090

	
 

	
Telephone Number: (651) 495-3880 

	
 

	
 

	
 

	
If to the
  Agent: 

	
 

	
 

	
 

	
BB&T
  Capital Markets 

	
 

	
1133 Avenue
  of the Americas, 27th Floor

	
 

	
New York,
  New York 10036

	
 

	
Attention:
  Paul Richardson

	
 

	
Fax : (646)
  390-8844 

81

	
 

	
 

	
 

	
and 

	
 

	
 

	
 

	
Branch
  Banking and Trust Company 

	
 

	
200 West
  Second Street, 16th Floor 

	
 

	
Winston-Salem,
  North Carolina 27101 

	
 

	
Attention:
  Cory Boyte 

	
 

	
Fax: (336)
  733-2740 

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

                    (b)
     All communications and notices described
hereunder to a Noteholder shall be in writing and delivered or mailed first
class mail, postage prepaid or overnight courier at the address shown in the
Note Register. The Indenture Trustee agrees to deliver or mail to each
Noteholder upon receipt, all notices and reports that the Indenture Trustee may
receive hereunder and under any Transaction Documents. All notices to
Noteholders (or any Class thereof) shall be sent simultaneously. Expenses for
such communications and notices shall be borne by the Servicer. 

          SECTION
13.4.      No Proceedings. 

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

          SECTION
13.5.     Limitation of Liability of Owner Trustee. 

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

82

ARTICLE XIV.

REDEMPTION OF NOTES

          SECTION
14.1.     Clean-up Call; Optional Redemption; Election to Redeem. 

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

                    (b)     Optional
Redemption. Notwithstanding anything to the contrary herein or in any other
Transaction Document, the Issuer shall have the option to redeem not less than
all of the Notes and thereby cause the early repayment of the Notes at any time
by payment of an amount equal to the Redemption Price and any amounts, fees and
expenses that are required to be paid pursuant to Section 6.6(b) hereof (unless
amounts in the Trust Accounts are sufficient to make such payments) using cash
from any source, including the Depositor. 

          SECTION
14.2.     Notice to Indenture Trustee. 

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

          SECTION
14.3.     Notice of Redemption by the Servicer. 

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

          SECTION
14.4.     Deposit of Redemption Price. 

                    On
or before the Business Day immediately preceding the Redemption Date, the
Servicer (in the case of a Clean-up Call) or the Issuer (in the case of an
Optional Redemption) shall deposit with the Indenture Trustee an amount equal
to the Redemption Price and any amounts, fees and expenses that are required to
be paid hereunder (less any portion of such payment to be made from funds held
in any of the Trust Accounts (other than the Lockbox Account and the Credit
Card Account). 

83

          SECTION
14.5.     Notes Payable on Redemption Date. 

                    Notice
of redemption having been given as provided in Section 14.3 hereof and deposit
of the Redemption Price with the Indenture Trustee having been made as provided
in Section 14.4 hereof, the Notes shall on the Redemption Date, become due and
payable at the Redemption Price, and, on such Redemption Date, such Notes shall
cease to accrue interest. The Indenture Trustee shall apply all available funds
in accordance with Section 6.6(b) hereof and the Noteholders shall be paid the
Redemption Price by the Indenture Trustee on behalf of the Servicer or the
Issuer, as the case may be, upon presentment and surrender of their Notes at
the office of the Indenture Trustee. If the Servicer or the Issuer, as the case
may be, shall have failed to deposit the Redemption Price with the Indenture
Trustee, the principal and interest with respect to each Class of Notes shall,
until paid, continue to accrue interest at their respective Note Rates. The
Servicer’s or the Issuer’s, as the case may be, failure to deposit the
Redemption Price shall not constitute an Event of Default hereunder. 

ARTICLE XV.

NON-PETITION AND LIMITED RECOURSE

          SECTION
15.1.     Limited Recourse Against A Structured Purchaser. Each party to
this Indenture hereby acknowledges and agrees that all transactions with a
Structured Purchaser, if any, under the Transaction Documents or in connection
herewith shall be without recourse of any kind to such Structured Purchaser.
Each party hereto agrees that no liability or obligation of a Structured
Purchaser hereunder for fees, expenses or indemnities shall constitute a claim
(as defined in Section 101 of Title 11 of the United States Bankruptcy Code)
against such Structured Purchaser unless such Structured Purchaser has received
sufficient amounts pursuant to this Indenture to pay such amounts, and such
amounts are not necessary to pay outstanding commercial paper issued by such
Structured Purchaser. No recourse shall be had for any amount owing hereunder
or any other obligation of, or claim against a Structured Purchaser arising out
of or based upon this Indenture or any agreement or document entered into in
connection herewith or therewith against any equity holder, member, employee,
officer, agent, or manager of such Structured Purchaser or any equity holder,
member, employee, officer, director, or affiliate thereof. The agreements set
forth in this Section 15.1 and the parties’ respective obligations under this
Section 15.1 shall survive the termination of this Indenture. 

          SECTION
15.2.     No Bankruptcy Petition Against A Structured Purchaser. Each of the
parties to this Indenture hereby covenants and agrees that, prior to the date
which is one year and one day after the payment in full of all outstanding
indebtedness for borrowed money of a Structured Purchaser, it will not
institute against, or join any other Person in instituting against, such
Structured Purchaser any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings or other similar proceeding under the Laws of the
United States or any state of the United States. The agreements set forth in
this Section 15.2 and the parties’ respective obligations under this Section
15.2 shall survive the termination of this Indenture. 

84

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

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
BXG TIMESHARE TRUST I,

	
 

	
 

	
 

	
By:

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

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
Name:

	
 

	
 

	
 

	
 

	
 

	
Title:

	
 

	
 

	
 

	
BLUEGREEN CORPORATION, as
  Servicer

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
Name: Anthony M. Puleo

	
 

	
 

	
 

	
 

	
Title: Senior Vice
  President, CFO and Treasurer

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
CONCORD SERVICING CORPORATION,
  as Backup Servicer

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
Name:

	
 

	
 

	
 

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
VACATION TRUST, INC., as
  Club Trustee

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
Name:

	
 

	
 

	
 

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
U.S. BANK NATIONAL
  ASSOCIATION, as Indenture Trustee and Custodian

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
Name:

	
 

	
 

	
 

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
BRANCH BANKING AND TRUST
  COMPANY, as Agent

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
Name:

	
 

	
 

	
 

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

[Signature Page to the Indenture]

85EXHIBIT 10.3

FIRST AMENDMENT TO LEASE

          THIS
FIRST AMENDMENT TO LEASE (the “Amendment” ) is made and entered into this ___ day
of February, 2008, by and between Tri Pointe Tucson, LLC, a California limited
liability company, (“Landlord”) and Scientific Learning Corporation, a Delaware
corporation, (“Tenant”). 

WITNESSETH:

          WHEREAS,
Landlord and Tenant executed that certain Tri-Pointe Office Lease dated April
5, 2006, by and between Tri Pointe Tucson, LLC, a California limited liability
company as Landlord, and Scientific Learning Corporation, a Delaware
corporation, as Tenant, for those premises located at 6373 E. Tanque Verde
Road, Suite 260, Tucson, Arizona, containing approximately 2,661 rentable
square feet, the (“Original Premises”) and;  

          WHEREAS,
the parties wish to amend the Lease to reflect (i) an extension of the Lease
Term, (ii) relocation of the Demised Premises to a new location within the
Building, the (“Substitute Premises”), (iii) the Base Rent to be paid for
during the extended lease term, and (iv) Tenant Improvements to be performed by
Landlord and related matters as hereinafter more specifically set forth; 

          NOW,
THEREFORE, in consideration of the covenants and agreements contained herein,
the parties do hereby agree as follows: 

1.       LEASE
TERM: The Lease term is amended to continue for a
period of five (5) years from the Scheduled Commencement Date of this First
Amendment, which is estimated to be June 1, 2008. 

2.       COMMENCEMENT
DATE. The term of this
Lease (“Lease Term”) shall be for a period of time specified in Article 1 of
this Amendment as the Lease Term. The Lease Term shall commence upon the date
referred to in Article 1 as the Scheduled Commencement Date, or twenty-four
(24) hours after substantial completion of Landlord s Work, whichever occurs
later, but in no event later than the date that Tenant opens for business in
the Premises (the “Commencement Date”). The Lease Term shall expire on the date
which is the Commencement Date plus the length of the Lease Term (“Termination
Date”). 

3.       DELAY IN
COMMENCEMENT. If for any
reason whatsoever Landlord cannot deliver possession of the Premises on the
date referenced in Article 1 as the Scheduled Commencement Date or on any other
date, this Lease will not be void or voidable, nor shall Landlord be liable to
Tenant for any loss or damage resulting therefrom. However, the Commencement
Date shall be delayed until possession of the Premises is delivered to Tenant,
and the Lease Term shall remain as the period of time specified in Article 1 as
the Lease Term, commencing on the Commencement Date, as so delayed. If Landlord
is unable to deliver possession of the Premises to Tenant within three (3)
months after the Scheduled Commencement Date referenced in Article 1, then
either Landlord or Tenant may terminate this Lease by giving written notice to
the other party within thirty (30) days after the end of the three (3) month
period, time being strictly of the essence, and the parties shall have no
further liability thereafter accruing under this Lease. 

4        SUBSTITUTE PREMISES: Effective as of
the Commencement Date,
Tenant shall vacate the Original Premises set forth in the Lease as 6373 E.
Tanque Verde Rd., Suite 260 consisting of approximately 2,661 rentable square
feet, and thereafter Tenant shall relocate its business and occupy the
Substitute Premises commonly known as 6367 E. Tanque Verde Rd., Suite 10,
consisting of approximately 6,167 rentable square feet, as further depicted on
Exhibit “A” attached hereto. Thereafter, the Substitute Premises shall become the
Demised Premises for the duration of the lease term. 

5.       TENANTS
SHARE OF OPERATING COSTS:
Effective as of the Commencement Date, Tenants prorate share of the building,
set forth in Section 1 Article L of the Lease, shall be 4.04%. 

6.       TENANT
IMPROVEMENTS: Landlord shall, at
Landlords sole cost, complete improvements to the Substitute Premises as set
forth in that certain design plan by Intertech Architectural Interiors, dated March
6, 2008, which plan is attached hereto as “Exhibit A” . 

Scientific Learning 

1st Amendment to Lease 

7.       BASE
RENT: As of the Commencement Date,
Tenant shall pay Landlord Base Rent for the Premises as follows: 

	
 

	
 

	
 

	
Period

	
Annual Base Rent

(per rentable square foot)  

	
Monthly Base Rent*

	
Year
  1

	
$21.00

	
$10,792.25

	
Year
  2

	
$21.63

	
$11,116.02

	
Year
  3

	
$22.28

	
$11,450.06

	
Year
  4

	
$22.95

	
$11,794.39

	
Year
  5

	
$23.64

	
$12,148.21

* plus applicable occupancy
tax. 

8.       RENTAL
ABATEMENT: The provisions of Article 7
Base Rent to the contrary
notwithstanding, provided Tenant is occupying the Premises and there has not
been an event of default, or an event that with the passing of time or giving
of notice would constitute default, Tenants obligation to pay Base Rent for
months one (1) through six (6) of the lease term shall be reduced by $1,750 per
month. Tenant s monthly Base Rent obligation for this period shall be
$$9,042.25 per month. Commencing with the month seven (7) of the lease term and
continuing through the remainder of the lease term, Tenants Base Rental
obligations shall be as set forth in Article 7 above. 

9.       In
all other respects the Lease, as amended herein, shall be unchanged, is
ratified and confirmed and shall be and remain in full force and effect. 

          IN
WITNESS WHEREOF, the Landlord and the Tenant have signed this First Amendment
to Lease on the day and year first hereinabove written. 

TENANT: 

Scientific Learning
Corporation, a Delaware corporation

	
 

	
 

	
 

	
By: 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
Title: 

	
 

	
 

	
 

	

LANDLORD: 

Tri Pointe Tucson, LLC, a
California limited liability company 

	
 

	
 

	
 

	
 

	
 

	
By:

	
West Valley Properties,
  Inc., a California corporation

	
 

	
Its:

	
Manager

	
 

	
 

	
 

	
By: 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
Title: 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
Date: 

	
 

	
 

	
 

	

3/12/2008

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