Document:

EX 4.20

	

THE SECURITIES
REPRESENTED BY THIS CONVERTIBLE PROMISSORY NOTE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED, OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
AS TO THE SECURITIES UNDER SAID ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE
DEBTOR THAT SUCH REGISTRATION IS NOT REQUIRED. 

	$30,000.00 	San Francisco, California 
		
Effective Date: February 16, 2001 

	

CONVERTIBLE
PROMISSORY NOTE

     FOR
VALUE RECEIVED, the undersigned, BURST.COM, INC., a corporation organized under
the laws of Delaware (“Debtor”), promises to pay to DRAYSEC
FINANCE LIMITED (“Lender”), at San Francisco, California, or at
Windermere House, 404 East Bay Street, P.O. Box SS-5539, Nassau, Bahamas, the
aggregate sum of Thirty Thousand Dollars ($30,000.00) bearing simple
interest on the unpaid principal balance of this Note, from the date of this
Note until this Note is paid in full at 6.0% per year. Accrued interest shall be
computed on the basis of a 360-day year, based on the actual number of days
elapsed. All principal and accrued interest will be due and payable in a single
lump sum on the one year anniversary date of the Effective Date set forth above,
if not earlier converted to equity as set forth below. All payments shall be
made in lawful money of the United States, without offset, deduction, or
counterclaim of any kind. 

     All
sums remaining unpaid under this Note shall become immediately due and payable,
at Lender’s option, without notice, demand, or presentment, and regardless
of any prior forbearance, on the occurrence of any of the following events: 

			(a) 		Debtor’s
failure to make payment due under this Note at its maturity;

			(b) 		the
filing of a petition in bankruptcy by Debtor;

			(c) 		the
making of a general assignment for the benefit of creditors by Debtor; or

			(d) 		upon
Debtor’s receipt of no less than $5,000,000 in the aggregate in equity investment since
the Effective Date.

	

     No
delay or omission by Lender in exercising any right or remedy under this Note,
or any other agreement executed in connection with this Note, shall operate as a
waiver of the future exercise of that right or remedy or of any other rights or
remedies under this Note or any other agreement executed in connection with this
Note. All rights of Lender stated in this Note are cumulative and in addition to
all other rights provided by law, in equity, or in any agreement executed in
connection with this Note. 

     This
Note may be prepaid only with the consent of a majority in interest of the
holders of notes purchased pursuant to that Note Purchase Agreement (the
“Purchase Agreement”) dated for reference purposes only as of February
16, 2001 (the “Majority Holders”). After Debtor has given notice to
the Majority Holders of its election to make a prepayment, and the Majority
Holders have consented to such prepayment, the amount to be paid shall be due
and payable on the date stated in the notice, which date shall not be less than
ten (10) days after the date of the notice. Any partial prepayment shall be
credited first to accrued interest, then to principal. No prepayment shall
extend or postpone the due date of any subsequent payment. This Note is
convertible into equity of Debtor upon the occurrence of the following events
and upon the other terms and conditions set forth below. 

1 

	

     1.
Conversion Events and Terms.  

	 	     (i)
Unless payment on this Note has earlier been made, in the event of a “Change in Control”
(as defined below), all principal under this Note (and under all other Notes issued
pursuant to the Purchase Agreement) will convert at the option of the Majority Holders
into equity of Debtor immediately prior to the effective time of such Change in Control
into a new series of Preferred Stock to be identified as Series A-2001 Preferred Stock at
a per share conversion price of Five Dollars ($5.00) per share, which series shall
provide in a Certificate of Designation to be filed by Debtor with the Delaware Secretary
of State for a liquidation preference of $7.50 per share in preference to any other
equity of Debtor. The Certificate of Designation shall also provide that such Series
A-2001 Preferred Stock is redeemable by Debtor upon at least ten (10) days advance
written notice at a redemption price of $7.50 per share. The foregoing rights,
preferences and privileges set forth in the Certificate of Designation shall be amendable
only with the consent of holders of 51% or more of the then outstanding shares of Series
A-2001 Preferred Stock. Debtor shall provide at least twenty (20) days advance written
notice prior to a Change in Control and Lender shall notify Debtor of its election to
convert within ten (10) days after receipt of such notice. In addition, any principal or
interest outstanding on this Note may be offset by Lender against the purchase price of
an equity interest in Debtor or its successor in interest that Lender and Debtor may
arrange, independent of this conversion feature.

	 	     (ii)
Notwithstanding the Majority Holders’ conversion right set forth above, in lieu of
issuing the Series A-2001 Preferred Stock, Debtor shall have the right to redeem this
Note and all Notes issued pursuant to the Purchase Agreement (including all accrued
interest then owed) for an amount equal to the Liquidation Preference of the Series
A-2001 Preferred Stock to be issued upon conversion.

	 	     (iii)
“Change in Control” for purposes of this Note means a consolidation or merger in which
the stockholders of Debtor prior to such merger or consolidation will own less than 50%
of the voting power of the surviving entity immediately following such merger or
consolidation, or the sale of substantially all of the assets of Debtor.

	

     2.
Conversion Procedure. Before Lender shall be entitled to
receive a certificate for shares of Debtor’s equity or receive the proceeds
from a redemption of this Note, Lender shall surrender this Note, duly endorsed,
at the principal office of Debtor. At its expense, Debtor shall, as soon as
practicable thereafter, issue and deliver to Lender at such principal office a
certificate or certificates for the number of shares of such Debtor’s
equity to which Lender shall be entitled upon such conversion (bearing such
restrictive legends as are required by the terms of the Purchase Agreement and
applicable state and federal securities law in the opinion of counsel to Debtor)
or the redemption cash proceeds, as the case may be. In the event of any
conversion of this Note pursuant to subsection 1 above, such conversion shall be
deemed to have been made immediately prior to the Change in Control. 

     3.
Mechanics and Effect of Conversion. No fractional shares shall be
issued upon conversion of this Note. In lieu of Debtor issuing any fractional
shares to Lender upon the conversion of this Note, Debtor shall pay to Lender
the amount of outstanding principal that is not so converted, such payment to be
in cash as provided below. Upon conversion of this Note and/or payment of all
principal and accrued interest, Debtor shall be forever released from all its
obligations and liabilities under this Note. 

     4.
Market Stand-off. In connection with any underwritten public
registration of Debtor’s securities, Lender agrees, upon the request of
Debtor or the underwriter(s) managing such underwritten offering of the
Debtor’s securities, not to sell, make any short sale of, loan, grant any
option for the purchase of, or otherwise dispose of any securities of Debtor
heretofore or hereafter acquired by Lender (other than those included in the
registration) without the prior written consent of the Debtor and such
underwriter(s), as the case may be, for a period of time, not to exceed one
hundred and eighty (180) days after the effective date of such registration (the
“Lock-up Period”). Upon request by the Debtor, Lender shall enter into
any further agreement in writing in a form reasonably satisfactory to Debtor and
such underwriter(s) to effectuate this lock-up. Debtor may impose stop-transfer
instructions with respect to the securities subject to the foregoing
restrictions until the end of the Lock-up Period. 

2 

	

     5.
Legend. Each certificate or instrument evidencing
securities which Lender may purchase hereunder and any other securities issued
upon any stock split, stock dividend, recapitalization, merger, consolidation or
similar event (unless no longer required in the opinion of the counsel for this
Debtor) shall be imprinted with legends substantially in the following form: 

	 	
THE
SECURITIES TO WHICH THIS INSTRUMENT RELATES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (“SECURITIES ACT”), OR UNDER ANY STATE SECURITIES LAWS (“BLUE SKY
LAWS”), AND MAY NOT BE OFFERED OR SOLD WITHOUT REGISTRATION UNDER THE SECURITIES ACT, AND
AS REQUIRED BY BLUE SKY LAWS IN EFFECT AS TO SUCH TRANSFER, UNLESS THIS CORPORATION HAS
RECEIVED AN OPINION FROM COUNSEL, SATISFACTORY TO THIS CORPORATION AND ITS COUNSEL, THAT
SUCH REGISTRATION IS NOT REQUIRED.

	 	
THE
SECURITIES REPRESENTED BY THIS INSTRUMENT ARE SUBJECT TO A “LOCK-UP” PROVISION
RESTRICTING THE TRANSFER OF THE SECURITIES IN CONNECTION WITH AN UNDERWRITTEN PUBLIC
OFFERING AS SET FORTH IN THAT CERTAIN CONVERTIBLE PROMISSORY NOTE DATED EFFECTIVE
FEBRUARY 16, 2001 BY AND BETWEEN THE ORIGINAL HOLDER HEREOF AND THIS CORPORATION.

	

     Debtor
shall be entitled to enter stop transfer notices on its transfer books with
respect to such securities. 

     6.
Attorneys Fees. If any action is instituted on this Note, the
successful or prevailing party or parties shall be entitled to recover
reasonable attorneys’ fees and other costs incurred in that action or
proceeding, in addition to any other relief to which the party or parties may be
entitled. Diligence, demand, presentment, notice of dishonor, and protest are
waived by Debtor, and any and all makers, sureties, guarantors, and endorsers of
this Note, and their successors and assigns. Time is of the essence for every
obligation under this Note. This Note shall not be transferable or assignable in
any manner, except to affiliates of Lender, and no interest shall be pledged or
otherwise encumbered by Lender without the express written consent of Debtor,
and any such attempted disposition of this Note or any portion hereof shall be
of no force or effect. 

     This
Note shall be construed under the laws of the State of California, as such laws
are applied to contracts entered into and performed entirely within that state
by residents thereof. 

     IN
WITNESS WHEREOF, Debtor has executed and delivered this Note as of the day
and year and at the place first above written. 

		BURST.COM, INC.

By:
       ————————————————————

Richard Lang, Chairman and Chief Executive Officer 

		DRAYSEC FINANCE LIMITED

Accepted by:
                         ————————————————

Print Name:
                         ———————————————— 

	

3 

	

THE SECURITIES
REPRESENTED BY THIS CONVERTIBLE PROMISSORY NOTE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE,
PLEDGED, OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
AS TO THE SECURITIES UNDER SAID ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE
DEBTOR THAT SUCH REGISTRATION IS NOT REQUIRED. 

	$70,000.00 	San Francisco, California 
		
Effective Date: February 16, 2001 

	

CONVERTIBLE
PROMISSORY NOTE

     FOR
VALUE RECEIVED, the undersigned, BURST.COM, INC., a corporation organized under
the laws of Delaware (“Debtor”), promises to pay to DRAYSEC
FINANCE LIMITED (“Lender”), at San Francisco, California, or at
Windermere House, 404 East Bay Street, P.O. Box SS-5539, Nassau, Bahamas, the
aggregate sum of Seventy Thousand Dollars ($70,000.00) bearing simple
interest on the unpaid principal balance of this Note, from the date of this
Note until this Note is paid in full at 6.0% per year. Accrued interest shall be
computed on the basis of a 360-day year, based on the actual number of days
elapsed. All principal and accrued interest will be due and payable in a single
lump sum on the one year anniversary date of the Effective Date set forth above,
if not earlier converted to equity as set forth below. All payments shall be
made in lawful money of the United States, without offset, deduction, or
counterclaim of any kind. 

     All
sums remaining unpaid under this Note shall become immediately due and payable,
at Lender’s option, without notice, demand, or presentment, and regardless
of any prior forbearance, on the occurrence of any of the following events: 

					

			(a) 		Debtor’s
failure to make payment due under this Note at its maturity;

			(b) 		the
filing of a petition in bankruptcy by Debtor;

			(c) 		the
making of a general assignment for the benefit of creditors by Debtor; or

			(d) 		upon
Debtor’s receipt of no less than $5,000,000 in the aggregate in equity investment since
the Effective Date.

	

     No
delay or omission by Lender in exercising any right or remedy under this Note,
or any other agreement executed in connection with this Note, shall operate as a
waiver of the future exercise of that right or remedy or of any other rights or
remedies under this Note or any other agreement executed in connection with this
Note. All rights of Lender stated in this Note are cumulative and in addition to
all other rights provided by law, in equity, or in any agreement executed in
connection with this Note. 

     This
Note may be prepaid only with the consent of a majority in interest of the
holders of notes purchased pursuant to that Note Purchase Agreement (the
“Purchase Agreement”) dated for reference purposes only as of February
16, 2001 (the “Majority Holders”). After Debtor has given notice to
the Majority Holders of its election to make a prepayment, and the Majority
Holders have consented to such prepayment, the amount to be paid shall be due
and payable on the date stated in the notice, which date shall not be less than
ten (10) days after the date of the notice. Any partial prepayment shall be
credited first to accrued interest, then to principal. No prepayment shall
extend or postpone the due date of any subsequent payment. This Note is
convertible into equity of Debtor upon the occurrence of the following events
and upon the other terms and conditions set forth below. 

1 

	

     1.
Conversion Events and Terms.  

	 	     (i)
Unless payment on this Note has earlier been made, in the event of a “Change in Control”
(as defined below), all principal under this Note (and under all other Notes issued
pursuant to the Purchase Agreement) will convert at the option of the Majority Holders
into equity of Debtor immediately prior to the effective time of such Change in Control
into a new series of Preferred Stock to be identified as Series A-2001 Preferred Stock at
a per share conversion price of Five Dollars ($5.00) per share, which series shall
provide in a Certificate of Designation to be filed by Debtor with the Delaware Secretary
of State for a liquidation preference of $7.50 per share in preference to any other
equity of Debtor. The Certificate of Designation shall also provide that such Series
A-2001 Preferred Stock is redeemable by Debtor upon at least ten (10) days advance
written notice at a redemption price of $7.50 per share. The foregoing rights,
preferences and privileges set forth in the Certificate of Designation shall be amendable
only with the consent of holders of 51% or more of the then outstanding shares of Series
A-2001 Preferred Stock. Debtor shall provide at least twenty (20) days advance written
notice prior to a Change in Control and Lender shall notify Debtor of its election to
convert within ten (10) days after receipt of such notice. In addition, any principal or
interest outstanding on this Note may be offset by Lender against the purchase price of
an equity interest in Debtor or its successor in interest that Lender and Debtor may
arrange, independent of this conversion feature.

	 	     (ii)
Notwithstanding the Majority Holders’ conversion right set forth above, in lieu of
issuing the Series A-2001 Preferred Stock, Debtor shall have the right to redeem this
Note and all Notes issued pursuant to the Purchase Agreement (including all accrued
interest then owed) for an amount equal to the Liquidation Preference of the Series
A-2001 Preferred Stock to be issued upon conversion.

	 	     (iii)
“Change in Control” for purposes of this Note means a consolidation or merger in which
the stockholders of Debtor prior to such merger or consolidation will own less than 50%
of the voting power of the surviving entity immediately following such merger or
consolidation, or the sale of substantially all of the assets of Debtor.

	

     2.
Conversion Procedure. Before Lender shall be entitled to
receive a certificate for shares of Debtor’s equity or receive the proceeds
from a redemption of this Note, Lender shall surrender this Note, duly endorsed,
at the principal office of Debtor. At its expense, Debtor shall, as soon as
practicable thereafter, issue and deliver to Lender at such principal office a
certificate or certificates for the number of shares of such Debtor’s
equity to which Lender shall be entitled upon such conversion (bearing such
restrictive legends as are required by the terms of the Purchase Agreement and
applicable state and federal securities law in the opinion of counsel to Debtor)
or the redemption cash proceeds, as the case may be. In the event of any
conversion of this Note pursuant to subsection 1 above, such conversion shall be
deemed to have been made immediately prior to the Change in Control. 

     3.
Mechanics and Effect of Conversion. No fractional shares shall be
issued upon conversion of this Note. In lieu of Debtor issuing any fractional
shares to Lender upon the conversion of this Note, Debtor shall pay to Lender
the amount of outstanding principal that is not so converted, such payment to be
in cash as provided below. Upon conversion of this Note and/or payment of all
principal and accrued interest, Debtor shall be forever released from all its
obligations and liabilities under this Note. 

     4.
Market Stand-off. In connection with any underwritten public
registration of Debtor’s securities, Lender agrees, upon the request of
Debtor or the underwriter(s) managing such underwritten offering of the
Debtor’s securities, not to sell, make any short sale of, loan, grant any
option for the purchase of, or otherwise dispose of any securities of Debtor
heretofore or hereafter acquired by Lender (other than those included in the
registration) without the prior written consent of the Debtor and such
underwriter(s), as the case may be, for a period of time, not to exceed one
hundred and eighty (180) days after the effective date of such registration (the
“Lock-up Period”). Upon request by the Debtor, Lender shall enter into
any further agreement in writing in a form reasonably satisfactory to Debtor and
such underwriter(s) to effectuate this lock-up. Debtor may impose stop-transfer
instructions with respect to the securities subject to the foregoing
restrictions until the end of the Lock-up Period. 

2 

	

     5.
Legend. Each certificate or instrument evidencing
securities which Lender may purchase hereunder and any other securities issued
upon any stock split, stock dividend, recapitalization, merger, consolidation or
similar event (unless no longer required in the opinion of the counsel for this
Debtor) shall be imprinted with legends substantially in the following form: 

	 	
THE
SECURITIES TO WHICH THIS INSTRUMENT RELATES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (“SECURITIES ACT”), OR UNDER ANY STATE SECURITIES LAWS (“BLUE SKY
LAWS”), AND MAY NOT BE OFFERED OR SOLD WITHOUT REGISTRATION UNDER THE SECURITIES ACT, AND
AS REQUIRED BY BLUE SKY LAWS IN EFFECT AS TO SUCH TRANSFER, UNLESS THIS CORPORATION HAS
RECEIVED AN OPINION FROM COUNSEL, SATISFACTORY TO THIS CORPORATION AND ITS COUNSEL, THAT
SUCH REGISTRATION IS NOT REQUIRED.

	 	
THE
SECURITIES REPRESENTED BY THIS INSTRUMENT ARE SUBJECT TO A “LOCK-UP” PROVISION
RESTRICTING THE TRANSFER OF THE SECURITIES IN CONNECTION WITH AN UNDERWRITTEN PUBLIC
OFFERING AS SET FORTH IN THAT CERTAIN CONVERTIBLE PROMISSORY NOTE DATED EFFECTIVE
FEBRUARY 16, 2001 BY AND BETWEEN THE ORIGINAL HOLDER HEREOF AND THIS CORPORATION.

	

     Debtor
shall be entitled to enter stop transfer notices on its transfer books with
respect to such securities. 

     6.
Attorneys Fees. If any action is instituted on this Note, the
successful or prevailing party or parties shall be entitled to recover
reasonable attorneys’ fees and other costs incurred in that action or
proceeding, in addition to any other relief to which the party or parties may be
entitled. Diligence, demand, presentment, notice of dishonor, and protest are
waived by Debtor, and any and all makers, sureties, guarantors, and endorsers of
this Note, and their successors and assigns. Time is of the essence for every
obligation under this Note. This Note shall not be transferable or assignable in
any manner, except to affiliates of Lender, and no interest shall be pledged or
otherwise encumbered by Lender without the express written consent of Debtor,
and any such attempted disposition of this Note or any portion hereof shall be
of no force or effect. 

     This
Note shall be construed under the laws of the State of California, as such laws
are applied to contracts entered into and performed entirely within that state
by residents thereof. 

     IN
WITNESS WHEREOF, Debtor has executed and delivered this Note as of the day
and year and at the place first above written. 

		BURST.COM, INC.

By:
       ————————————————————

Doug Glen, President and Chief Executive Officer 

		DRAYSEC FINANCE LIMITED

Accepted by:
                         ————————————————

Print Name:
                         ———————————————— 

	

3SALE AND SERVICING AGREEMENT

                            Dated as of June 29, 2001

                                      among

                  BLUEGREEN RECEIVABLES FINANCE CORPORATION V,
                                  as Depositor

                       BXG RECEIVABLES NOTE TRUST 2001-A,
                                    as Issuer

                             BLUEGREEN CORPORATION,
                             as Seller and Servicer

                         CONCORD SERVICING CORPORATION,
                               as Backup Servicer

                              VACATION TRUST, INC.,
                                as Club Trustee,

                                       and

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

                        BXG RECEIVABLES NOTE TRUST 2001-A
                        ASSET BACKED NOTES, SERIES 2001-A

<PAGE>

     SALE AND  SERVICING  AGREEMENT  dated as of June 29,  2001 by and among BXG
RECEIVABLES  NOTE TRUST 2001-A,  a Delaware  business trust (the "Issuer" or the
"Trust"),  BLUEGREEN  RECEIVABLES FINANCE CORPORATION V, a Delaware  corporation
(the "Depositor"),  BLUEGREEN CORPORATION, a Massachusetts  corporation,  in its
capacities  as the  Seller and the  Servicer  (respectively,  together  with its
permitted  successors  and  assigns  in such  capacities,  the  "Seller"  or the
"Servicer"),  CONCORD  SERVICING  CORPORATION,  an Arizona  corporation,  in its
capacity as Backup  Servicer  (together  with its successors and assigns in such
capacity,  the "Backup Servicer"),  Vacation Trust, Inc., a Florida corporation,
as Club Trustee under the Club Trust  Agreement (the "Club  Trustee"),  and U.S.
BANK TRUST NATIONAL ASSOCIATION, a national banking association, in its capacity
as the indenture trustee on behalf of the Owners of the Notes (together with its
successors  and assigns in such capacity,  the  "Indenture  Trustee") and in its
capacity  as  Custodian  under  the  Custodial   Agreement  (together  with  its
successors and assigns in such capacity, the "Custodian").

     WHEREAS,  the Seller is engaged in the business of originating,  purchasing
and servicing  contracts and mortgage loans secured by time share  Intervals (as
defined herein);

     WHEREAS,  the Seller  desires to sell to the  Depositor  and the  Depositor
desires to purchase from the Seller,  and the  Depositor  desires to sell to the
Issuer and the Issuer desires to purchase from the Depositor, from time to time,
certain  contracts and mortgage loans and certain  monies  received with respect
thereto after the applicable Cut-Off Date or Additional Cut-Off Date; and

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

     WHEREAS, the Servicer has agreed to service the Receivables,  in accordance
with the terms of this Agreement; and

     WHEREAS,  Concord  Servicing  Corporation  is  willing  to serve as  Backup
Servicer hereunder; and

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

     NOW, THEREFORE,  in consideration of the premises and the mutual agreements
herein  contained,  the Issuer,  the Depositor,  the Seller,  the Servicer,  the
Backup  Servicer,  the  Custodian,  and the  Indenture  Trustee  hereby agree as
follows:

                                   ARTICLE I

                       DEFINITIONS; RULES OF CONSTRUCTION

     Section 1.1. Definitions. For all purposes of this Agreement, the following
terms shall have the  meanings set forth  below:  Except as otherwise  specified
herein or as the context may

<PAGE>

otherwise  require,  for all purposes of this Agreement,  capitalized terms used
but not otherwise defined herein have the meanings set forth in the Indenture.

     "Accommodation": As defined in the Club Trust Agreement.

     "Account": Any account established in accordance with Section 3.1 hereof.

     "Addition Agreement": As defined in Section 2.5.

     "Additional  Cut-Off Date":  With respect to any Addition Date the 15th day
of the month immediately preceding such Addition Date.

     "Additional  Receivable":  Each Receivable which pursuant to Section 2.5 is
included as an Additional Receivable and Substitute Receivables.

     "Additional  Resorts":  Those certain timeshare  vacation resorts which the
Agent may  approve in the future and with  respect to which  Receivables  may be
purchased under this Agreement,  which written  approval shall be in the Agent's
reasonable  discretion and for which the Seller and the Depositor  shall provide
the closing materials described in Exhibit I-2 to Schedule III hereto.

     "Addition Date":  Any date on which Additional  Receivables are conveyed to
the Issuer  pursuant to Section 2.5, such date not to be later than the Facility
Termination Date, including the Initial Addition Date.

     "Addition Date Notice": The Addition Date Notice, substantially in the form
of Exhibit A attached hereto and delivered pursuant to Section 2.5 hereof.

     "Affiliate":  With  respect  to any  specified  Person,  any  other  Person
controlling or controlled by or under common control with such specified Person.
For the  purposes of this  definition,  "control"  when used with respect to any
specified  Person means the power to direct the  management and policies of such
Person,  directly  or  indirectly,  whether  through  the  ownership  of  voting
securities,   by  contract  or  otherwise  and  the  terms   "controlling"   and
"controlled" have meanings correlative to the foregoing.

     "Agent":  Credit Suisse First Boston,  New York Branch,  in its capacity as
agent  for  the  purchasers  parties  to the  Note  Purchase  Agreement  and its
successors and assigns in such capacity.

     "Aggregate  Outstanding  Receivable Balance":  With respect to any group of
Receivables as of any date, the sum of the  outstanding  Receivable  Balances of
all such Receivables in such group as of such date.

     "Agreement":  This Sale and Servicing Agreement,  as it may be amended from
time to time, including the Exhibits and Schedules hereto.

     "Aruba Receivables":  A Receivable relating to the Resort commonly known as
LaCabana Beach and Racquet Club.

                                      -2-
<PAGE>

     "Asset  Pool":  At any time,  all then  outstanding  Assets which have been
conveyed to the Trust under this Agreement.

     "Assets": As defined in Section 2.3 of this Agreement.

     "Assignment":  With respect to the Receivables, the original instruments of
assignment of such  Receivables in recordable  form by the Seller in blank or in
the name of the Indenture Trustee on behalf of the Owners.

     "Authorized  Officer":  With  respect to any  Person,  any  officer of such
Person who is  authorized  to act for such  Person in matters  relating  to this
Agreement,  and whose action is binding upon,  such Person;  with respect to the
Depositor or the Servicer,  initially  including those  individuals  whose names
appear on the lists of  Authorized  Officers  delivered on or before the Initial
Addition Date; with respect to the Indenture  Trustee or Custodian,  any officer
assigned to the Corporate Trust Division (or any successor  thereto),  including
any Vice  President,  Assistant Vice  President,  Trust  Officer,  any Assistant
Secretary,  any trust  officer  or any other  officer of the  Indenture  Trustee
customarily  performing functions similar to those performed by any of the above
designated  officers and having direct  responsibility for the administration of
this Agreement.

     "Available Funds": As to any Payment Date, the sum of all amounts described
in clauses  (i)  through  (vii)  inclusive,  of Section  4.2(b)  received by the
Servicer  (including  any  amounts  paid  by the  Servicer  and the  Seller  and
excluding any amounts not required to be deposited in the Note Account  pursuant
to Section 4.2(b) or withdrawn by the Indenture Trustee or the Servicer pursuant
to Sections 4.3 (b), (c), (d), (e) or (f) in respect of the Receivables)  during
the related  Collection  Period. No amount included in this definition by virtue
of being described by any component of the definition  thereof shall be included
twice by virtue of also being described by any other component or otherwise.

     "Backup Servicer":  Concord Servicing Corporation,  an Arizona corporation,
and any successor hereunder.

     "Backup Servicing  Agreement":  The Backup Servicing  Agreement dated as of
June 29, 2001,  among the Issuer,  the  Depositor,  the Servicer,  Credit Suisse
First Boston,  New York Branch,  as agent. the Backup Servicer and the Indenture
Trustee,  as the same may be amended,  supplemented  or otherwise  modified from
time to time.

     "Backup Servicing Fee": As defined in the Backup Servicing Agreement.

     "Beneficiary": As defined in the Club Trust Agreement.

     "BIF": The Bank Insurance Fund, as from time to time  constituted,  created
under the Financial  Institutions Reform,  Recovery and Enhancement Act of 1989,
or, if at any time after the execution of this Agreement the Bank Insurance Fund
is not existing and  performing  duties now assigned to it, the body  performing
such duties on such date.

     "Business Day": Any day other than (i) a Saturday or a Sunday or (ii) a day
on which commercial  banking  institutions in the states of Delaware,  New York,
Massachusetts or the state

                                      -3-
<PAGE>

in which the  Corporate  Trust Office is located are  authorized or obligated by
law or executive order to be closed.

     "Capital Stock":  With respect to a Person, any and all shares,  interests,
rights to purchase, warrants, options, participations or other equivalents of or
interests in (however designated) equity of such Person, including any preferred
stock, but excluding any debt securities convertible into such equity.

     "Carry-Forward  Amount": As to any Payment Date, the sum of (i) the amount,
if any, by which (x) the Current Interest for the immediately  preceding Payment
Date  exceeded (y) the amount of the actual  distribution  made to the Owners of
the  Notes on such  immediately  preceding  Payment  Date  pursuant  to  Section
3.2(a)(iv)  or 3.2(b)(iv)  hereof plus (ii) 30 days'  interest on such excess at
the Base Rate (as defined and  calculated in the Note Purchase  Agreement)  plus
1.0% per annum to the extent permitted by law.

     "Charge Card Fee Payment":  With respect to each payment made by an Obligor
by use of a credit card, the aggregate of all processing  and  transaction  fees
deducted from such payment.

     "Closing Date":  June 29, 2001.

     "Club": The club formed pursuant to the Club Trust Agreement as well as any
other club approved by the Trust.

     "Club Management Agreement":  The Amended and Restated Management Agreement
between Bluegreen Resorts Management,  Inc. and Vacation Trust, Inc. dated as of
May 18, 1994, as amended from time to time.

     "Club Managing  Entity":  Bluegreen  Resorts  Management,  Inc., a Delaware
corporation,  in its  capacity  as  manager  of the Club and owner of the Club's
reservation system and its permitted successors and assigns.

     "Club Trust Agreement":  Collectively, that certain Bluegreen Vacation Club
Amended and Restated Trust Agreement,  dated as of May 18, 1994, among Bluegreen
Vacations Unlimited, Inc., the Club Trustee, Bluegreen Resorts Management,  Inc.
and Bluegreen  Vacation Club, Inc., as amended,  restated or otherwise  modified
from time to time,  set forth on Exhibit B to this  Agreement  together with all
other agreements, documents and instruments governing the operation of the Club.

     "Club  Trustee":  Vacation  Trust,  Inc.,  a  Florida  corporation,  in its
capacity as trustee under the Club Trust Agreement and its permitted  successors
and assigns.

     "Code": The Internal Revenue Code of 1986, as amended.

     "Collection  Period":  With  respect  to  each  Payment  Date,  the  period
commencing on the sixteenth  (16th) day of the second month  preceding the month
of such  Payment  Date and  ending  on the  fifteenth  (15th)  day of the  month
immediately  preceding  the  month  of such  Payment  Date;  provided  that  the
Collection Period with respect to the initial Payment Date shall commence on

                                      -4-
<PAGE>

the day after the initial Cut-Off Date and end on the fifteenth day of the month
prior to the first Payment Date.

     "Collection  Policy":.  The Collection Policy attached hereto as Exhibit C,
as amended or  supplemented  from time to time with the prior written consent of
the Agent.

     "Collections":  With respect to any Receivable and related Assets, all cash
collections  and other cash proceeds of such Assets  received  after the Cut-Off
Date.

     "Completed  Units": A Unit at a Resort or Additional  Resort which has been
fully constructed and furnished,  has received a valid permanent  certificate of
occupancy, is ready for occupancy and is subject to a time share declaration.

     "Computer Disk": The computer disk generated by the Servicer which provides
information  relating to the  Receivables  and which is used by the  Servicer in
servicing the Receivables  conveyed to the Depositor  pursuant to this Agreement
(and any Addition Agreement or Substitution Agreement),  and includes the master
file and the history file as well as servicing  information  with respect to the
Receivables.

     "Consolidated  Net Worth":  On a  consolidated  basis for Bluegreen and its
subsidiaries,  at any date,  (i) the sum of (a)  capital  stock  taken at par or
stated  value plus (b)  capital of  Bluegreen  in excess of par or stated  value
relating to capital  stock plus (c)  retained  earnings  (or minus any  retained
earning  deficit) of  Bluegreen  minus (ii) the sum of treasury  stock,  capital
stock  subscribed  for  and  unissued  and  other  contra-equity  accounts,  all
determined in accordance with GAAP.

     "Corporate Trust Office": The meaning specified in the Indenture.

     "Credit  Policy":  The Seller's  credit  policy or policies and  practices,
existing  on the date  hereof and  attached  hereto as  Exhibit  D, as  amended,
supplemented or otherwise modified and in effect from time to time in compliance
with the terms of the Note Purchase Agreement.

     "Current  Interest":  With  respect to any Payment  Date,  the Note Monthly
Interest  with  respect  to  the  related   Interest  Period  plus  the  related
Carry-Forward Amount.

     "Custodial  Agreement":  That certain Custodial  Agreement dated as of June
29, 2001 by and among the Indenture  Trustee,  the Agent, the other Persons from
time  to  time  parties  thereto,   the  Issuer,  the  Custodian  and  Bluegreen
Corporation, as the same may be amended, supplemented or otherwise modified from
time to time  providing  for the  custody  and  maintenance  of the  Receivables
Documents relating to the Receivables.

     "Custodian": As defined in recitals.

     "Cut-Off  Date":  With  respect  to each  Purchased  Receivable  (including
Additional Receivables),  the date specified in the related List of Receivables,
after which  Collections on such Purchased  Receivable are to constitute part of
the Asset Pool.

                                      -5-
<PAGE>

     "Cut-Off  Date  Principal  Balance":  As to any  Receivable,  the  original
principal  amount of such Receivable  minus all payments  applied to reduce such
original  principal  amount on or before the Cut-Off Date or Additional  Cut-Off
Date, as the case may be.

     "Deeds":  The writing evidencing title in the Club Trustee on behalf of the
Beneficiaries  referred to in, and subject to the other  provisions of, the Club
Trust Agreement, with respect to Intervals relating to Receivables.

     "Defaulted  Receivable":  A  Receivable  in the Asset  Pool as to which the
earlier of the following  shall have occurred (i) the Servicer has determined in
its sole discretion,  in accordance with its customary and usual practices, that
such  Receivable  is not  collectible,  or (ii) all or part of any  payment  due
thereunder is 90 days or more Delinquent.

     "Default Ratio (Serviced)":  As of any Test Date, the product of (i) 12 and
(ii) the  ratio,  (expressed  as a  percentage)  the  numerator  of which is the
aggregate  outstanding  principal  balance of all  Tested  Assets  which  became
defaulted  during the  related  Fiscal  Month and,  pursuant  to the  Servicer's
procedures,  were placed into inventory and made available for re-sale (less any
reinstatements),  and the  denominator  of  which is the  aggregate  outstanding
principal balance of all Tested Assets as of the end of such Fiscal Month.

     "Defective Receivable":  Any Receivable subject to repurchase by the Seller
pursuant to Section 2.1 or 2.2.

     "Delinquency  Ratio  (Serviced)":  With respect to any Test Date, the ratio
(expressed as a percentage) of (i) the aggregate outstanding receivables balance
of all Tested  Assets that were 30 days  Delinquent or greater  (excluding  Test
Assets that were included in the calculation of Default Ratio (Serviced) and are
serviced by the Servicer divided by (ii) the aggregate  outstanding  receivables
balance of all such Test Assets,  in each case as of the last day of the related
Fiscal Month.

     "Delinquent":   A  Receivable  is  Delinquent  if,  with  respect  to  such
Receivable,  any  payment  thereon  is not made by the  Obligor  by the close of
business on the related Due Date. A Receivable is "30 days  Delinquent"  if such
payment has not been received by the close of business on the 30th day following
the related Due Date.  By way of example,  an Obligor  whose Due Date is April 1
and did not make such payment as of the close of business on May 1 (30 days past
the related Due Date) would be considered "30 days Delinquent" as of the open of
business on May 2nd.

     "Delinquent   Receivable":   Any   Receivable,   other  than  a   Defaulted
Receivables, that is Delinquent 31 days or more.

     "Deposit Amount":  With respect to any substitution of Receivables pursuant
to Section 2.5, the positive  excess,  if any, of (i) the Aggregate  Outstanding
Receivable  Balance  of  the  Replaced   Receivables  over  (ii)  the  Aggregate
Outstanding Receivable Balance as of the related Cut-Off Date of the Receivables
being  transferred  to the Asset  Pool on any  Business  Day in  respect of such
substitution.

                                      -6-
<PAGE>

     "Depositor":  Bluegreen  Receivables  Finance  Corporation  V,  a  Delaware
corporation, or any permitted successor or assign.

     "Determination  Date":  With respect to any Payment Date,  the day which is
three (3) Business Days prior to such Payment Date.

     "Due Date":  With respect to any Receivable,  the day of the month on which
the Monthly Payment is due from the Obligor exclusive of any days of grace.

     "Eligible  Account":  A segregated  trust or direct deposit  account with a
Qualified Institution.

     "Eligible Investments": One or more of the following:

          (a)  Federal  funds,  certificates  of  deposit,  time  deposits,  and
     bankers' acceptances (having original maturities of not more than 365 days)
     of any domestic bank, the  short-term  debt  obligations of which have been
     rated at least A-1 by  Standard & Poor's  and P-1 by Moody's (a  "Qualified
     Bank");

          (b)  Deposits  of any  bank  or  savings  and  loan  association  (the
     long-term  deposit  rating of which is Baa2 or better by Moody's and BBB or
     better by  Standard  & Poor's)  which has  combined  capital,  surplus  and
     undivided profits of at least $50,000,000 which deposits are insured by the
     FDIC and made in  aggregate  amounts  less than the  limits  insured by the
     FDIC;

          (c) Commercial paper (having original  maturities of not more than 270
     days)  rated in the  highest  short-term  rating  categories  of Standard &
     Poor's and Moody's;

          (d)  Investments  in no-load money market funds  registered  under the
     Investment  Company  Act of 1940  whose  shares  are  registered  under the
     Securities  Act and rated  AAAm or AAAm-G by  Standard  & Poor's and Aaa by
     Moody's;

          (e) direct  obligations of, and obligations  fully  guaranteed by, the
     United States of America;

          (f)  repurchase  agreements  fully  collateralized  by  possession  of
     obligations of the type specified in clause (e) above;  provided,  however,
     that  investments in such repurchase  agreements  shall mature within three
     days of the acquisition thereof and; provided further, that such agreements
     shall be entered into with a Qualified Bank;

          (g) money  market  accounts or money  market  mutual  funds  investing
     primarily  in  obligations  of the United  States  government,  and further
     investing  exclusively in debt obligations,  provided,  however,  that such
     money market  accounts or money market mutual funds shall be rated at least
     A-1 by Standard & Poor's and P-1 by Moody's;

          (h) Demand and time deposits in,  certificates of deposit of, bankers'
     acceptances issued by, or federal funds sold by any depository  institution
     or trust company  (including the Indenture  Trustee or any Affiliate of the
     Indenture Trustee,  acting in its commercial  capacity)  incorporated under
     the laws of the United  States of America or any State

                                      -7-
<PAGE>

     thereof and subject to supervision and examination by federal and /or state
     authorities,  so long as,  at the time of such  investment  or  contractual
     commitment  providing for such  investment,  the commercial  paper or other
     short-term deposits of such depository institution or trust company (or, in
     the case of a depository institution which is the principal subsidiary of a
     holding company,  the commercial paper or other short term debt obligations
     of such holding company) are rated at least P-1 by Moody's and at least A-1
     by Standard & Poor's; and

          (i) such  other  investments  as may from time to time be agreed to by
     the Servicer and the Agent in writing;

     provided that no instrument described above shall evidence either the right
to receive (i) only interest  with respect to the  obligations  underlying  such
instrument or (ii) both principal and interest payments derived from obligations
underlying such instrument and the interest and principal  payments with respect
to such instrument  provided a yield to maturity at par greater than 120% of the
yield to maturity at par of the underlying obligations;  and provided,  further,
that all instruments  described hereunder shall mature at par on or prior to the
next  succeeding  Payment Date unless  otherwise  provided in this Agreement and
that no instrument  described hereunder may be purchased at a price greater than
par if such  instrument  may be  prepaid  or  called  at a price  less  than its
purchase price prior to stated maturity.

     "Eligible Receivable": For any date of determination,  any Receivable which
satisfies the following conditions:

               (i)  each  representation  and  warranty  with  respect  to  such
          Receivable  set  forth  in  Section  2.2  hereof,   on  such  date  of
          determination,  is true and  correct;  provided  that  representations
          2.2(a)(iii) (payments past due), and 2.2(a)(lv) (Defaulted Receivable)
          shall not be included in this definition  because such Receivables are
          addressed in clauses (ii) below;

               (ii) such Receivable is not a Defaulted Receivable.

For purposes of this  definition and the  calculation of the Borrowing Base, the
eligibility of  Receivables  will be determined  from time to time,  such that a
Receivable  that was an Eligible  Receivable  at one time but that  subsequently
fails to meet all applicable eligibility  requirements  (including the truth and
accuracy of each of the representations  and warranties  described in (i) above)
will no longer be an  Eligible  Receivable  (unless and until it again meets all
applicable  eligibility  requirements).  It being further  agreed and understood
that the sole remedy  against the Seller under the Sale and Servicing  Agreement
for a breach of a  representation  or warranty  by the Seller in Section  2.2(a)
shall be the repurchase or substitution of the related  Receivable in accordance
with the terms hereof.

     "Equity  Offering":  An offering  by  Bluegreen  Corporation  of any of its
Capital Stock.

     "Event of Default": As defined in Section 5.1 of the Indenture.

     "Excluded Receivables  Balance":  With respect to any day, the sum, without
duplication, of the following amounts:

                                      -8-
<PAGE>

               (i) the  amount by which the  Aggregate  Outstanding  Receivables
          Balance of  Eligible  Receivables  relating  to an Obligor or group of
          Affiliate   Obligors  exceeds  0.20%  of  the  Aggregate   Outstanding
          Receivables Balance of all Eligible Receivables, plus

               (ii) the amount by which the  Aggregate  Outstanding  Receivables
          Balance of Eligible  Receivables  other than Land  Receivables with an
          initial  term to  maturity  of more than 120 months  exceeds 1% of the
          Aggregate Outstanding Receivables Balance of all Eligible Receivables,
          plus

               (iii) the amount by which the Aggregate  Outstanding  Receivables
          Balance  of  any  Eligible  Receivables  relating  to any  Obligor  or
          Affiliate Obligors exceeds $100,000, plus

               (iv) the amount by which the  Aggregate  Outstanding  Receivables
          Balance of Aruba Receivables  relating to Obligors that are non-United
          States resident exceeds 40% of the Aggregate  Outstanding  Receivables
          Balance of all Aruba Receivables, plus

               (v) the  amount by which the  Aggregate  Outstanding  Receivables
          Balance of Receivables relating to Obligors that are non-United States
          resident exceeds 10% of the Aggregate Outstanding  Receivables Balance
          of all Eligible Receivables, plus

               (vi) the amount by which the  Aggregate  Outstanding  Receivables
          Balance of Eligible  Receivables  relating to Land Receivables exceeds
          15% of the Aggregate  Outstanding  Receivables Balance of all Eligible
          Receivables, plus

               (vii) the amount by which the Aggregate  Outstanding  Receivables
          Balance of Eligible  Receivables  relating to Land Receivables exceeds
          10% of the Facility Limit, plus

               (viii) the amount by which the Aggregate Outstanding  Receivables
          Balance of Eligible  Receivables relating to Aruba Receivables exceeds
          15% of the Aggregate  Outstanding  Receivables Balance of all Eligible
          Receivables, plus

               (ix) the amount by which the  Aggregate  Outstanding  Receivables
          Balance of Eligible  Receivables relating to Aruba Receivables exceeds
          6% of the Facility Limit, plus

               (x) the amount of the Aggregate  Outstanding  Receivables Balance
          of Eligible  Receivables  with a  Receivable  Rate of less than 14.90%
          necessary to increase the weighted  average  Receivable Rate (weighted
          on the basis of Receivable Balance) of all Eligible  Receivables to at
          least 14.90%, plus

               (xi) the amount by which the  Aggregate  Outstanding  Receivables
          Balance of Eligible Receivables relating to any one Resort exceeds 40%
          of the  Aggregate  Outstanding  Receivables  Balance  of all  Eligible
          Receivables, plus

                                      -9-
<PAGE>

               (xii) the amount by which the Aggregate  Outstanding  Receivables
          Balance of Eligible  Receivables  relating to  Obligors  with  billing
          addresses in any one state  exceeds 20% of the  Aggregate  Outstanding
          Receivables Balance of all Eligible Receivables, plus

               (xiii) the amount by which the Aggregate Outstanding  Receivables
          Balance of all Eligible  Receivables  for which the related Obligor is
          an  employee  or a  relative  of  an  employee  of  Bluegreen  or  any
          Subsidiary  exceeds  0.5%  of the  Aggregate  Outstanding  Receivables
          Balance of all Eligible Receivables, plus

               (xiv) the amount by which the Aggregate  Outstanding  Receivables
          Balance of  Eligible  Receivables  which have been  impaired,  waived,
          altered,  or  modified  more than  once  exceeds  1% of the  Aggregate
          Outstanding Receivables Balance of all Eligible Receivables.

     "Facility  Limit":  As of the  Closing  Date  $75,000,000,  and  thereafter
aggregate  amount of the Commitments (as defined in the Note Purchase  Agreement
and as such  Commitments  may be reduced from time to time  pursuant to the Note
Purchase Agreement).

     "Facility Termination Date": As defined in the Note Purchase Agreement.

     "FDIC":   The   Federal   Deposit   Insurance   Corporation,   a  corporate
instrumentality of the United States, or any successor thereto.

     "Fees": As defined in the Note Purchase Agreement.

     "Finance Charges": With respect to a Receivable,  any finance, interest, or
similar  charges  owing  by an  Obligor  or  another  Person  pursuant  to  such
Receivable.

     "Fiscal Month": The fiscal month of the Servicer pursuant to the Servicer's
financial statements,  which for each fiscal quarter shall consist of two fiscal
months of four weeks each and one fiscal month of five weeks.

     "Fitch": Fitch, Inc.

     "Force  Majeure  Delay":  With respect to the Servicer,  any cause or event
which is beyond the control and not due to the negligence of the Servicer, which
delays,  prevents or prohibits such Person's delivery of the Reports required to
be delivered  herein or the  performance  of any other duty or obligation of the
Servicer hereunder as the case may be, including, without limitation,  computer,
electrical  and  mechanical  failures,  acts of God or the  elements  and  fire;
provided,  that no such  cause or event  shall be deemed  to be a Force  Majeure
Delay unless the Servicer  shall have given the Agent written  notice thereof as
soon as possible after the beginning of such delay.

     "Hedge  Agreement":  Any interest rate cap  agreement,  which the Agent may
require the Issuer to enter into at any time, pursuant to Section 5.7 hereof.

     "Indebtedness":   With  respect  to  any  Person  at  any  date,   (a)  all
indebtedness  of such Person for  borrowed  money or for the  deferred  purchase
price of property or services (other than

                                      -10-
<PAGE>

current  liabilities  incurred in the ordinary course of business and payable in
accordance  with  customary  trade  practices)  or which is evidenced by a note,
bond, debenture or similar instrument,  (b) all obligations of such Person under
capital  leases,  (c) all  obligations  of such Person in respect of acceptances
issued or created for the account of such Person, (d) all liabilities secured by
any Lien on any  property  owned by such  Person even though such Person has not
assumed  or  otherwise  become  liable  for the  payment  thereof.,  and (e) all
Indebtedness of other Persons to the extent guaranteed by such Person

     "Indenture":  The Indenture,  dated as of June 29, 2001, between the Issuer
and the Indenture Trustee, as the same may be amended, supplemented or otherwise
modified from time to time.

     "Indenture  Trustee":  U.S.  Bank Trust  National  Association,  a national
banking association,  the Corporate Trust Office of which is located on the date
of execution of this  Agreement at 180 East Fifth Street,  St. Paul,  Minnesota,
not in its  individual  capacity  but  solely  as  Indenture  Trustee  under the
Indenture, and any successor hereunder.

     "Initial  Addition  Date":  The first  Addition Date after the Closing Date
pursuant to which the Initial Receivables are purchased by the Depositor.

     "Initial   Receivables":   Each  Receivable   identified  on  the  List  of
Receivables delivered on the Initial Addition Date.

     "Insurance  Policy":  With respect to any Receivable,  an insurance  policy
covering  physical damage to or loss of the related  Interval or, if applicable,
any title  commitment or title policy  covering the Mortgage,  if any,  securing
such Receivable.

     "Insurance Proceeds":  Any proceeds received by the Servicer as a result of
the payment of a claim on an Insurance Policy.

     "Insured Expenses":  Expenses incurred by the Servicer in connection with a
Receivable under which the Obligor is in default,  which expenses are covered by
a Standard  Hazard  Insurance  Policy and are paid by an insurer  under any such
policy.

     "Intangible Asset": A nonphysical, noncurrent right that gives Bluegreen or
any of its  subsidiaries  an exclusive or preferred  position in the marketplace
including  but  not  limited  to  a  copyright,  patent,  trademark,   goodwill,
organization costs,  capitalized  advertising cost, computer programs,  licenses
for any of the preceding,  government licenses (e.g.,  broadcasting or the right
to sell liquor), leases, franchises,  mailing lists, exploration permits, import
and export permits, construction permits, and marketing quotas.

     "Interest Period": As defined in the Note Purchase Agreement.

     "Interval":  With  respect  to any  Resort  or  Additional  Resort,  (i) an
undivided fee simple  ownership  interest as a tenant in common or (ii) a Resort
Interest that is an ownership interest in real property substantially similar to
an ownership interest described in clause (i) above, with respect to any Unit in
such Resort or  Additional  Resort,  with a right to use such Unit, or a Unit of
such type,  generally  for one week  annually or  biannually,  together with all
appurtenant rights and

                                      -11-
<PAGE>

interests as more particularly described in the Receivables Documents.  The term
"Interval" shall also include interests in Land Receivables purchased hereunder.

     "Issuer" or "Trust": BXG Receivables Note Trust 2001-A, a Delaware business
trust.

     "Land  Receivable":  Receivables  arising in connection with and secured by
Mortgages on parcels of real property.

     "Leverage Ratio": With respect to any Person as of a date of determination,
the  ratio  of (i) the  Indebtedness  of such  person  on such  date to (ii) the
Tangible Net Worth of such person on such date.

     "Lien": Any mortgage,  deed of trust,  pledge,  hypothecation,  assignment,
deposit arrangement,  encumbrance,  lien (statutory or other),  equity interest,
participation  interest,  preference,  priority or other  security  agreement or
preferential  arrangement of any kind or nature whatsoever,  including,  without
limitation,  any  conditional  sale or other title  retention  agreement  or any
financing  lease having  substantially  the same  economic  effect as any of the
foregoing.

     "List of Receivables":  The list  identifying each Receivable  constituting
part of the Assets,  which list shall consist of the initial List of Receivables
reflecting the Receivables purchased on the initial Purchase Date, together with
any  Additional  Receivables  set forth on each  Subsequent  List of Receivables
transferred  to the Trust on the related  Addition  Date, and which list in each
case (a)  identifies  each  Receivable  included in the Asset Pool, and (b) sets
forth as to each such Receivable (i) the Receivable Balance as of the applicable
Cut-Off Date, and (ii) the maturity date for each listed Receivable.

     "Loan-to-Sale Ratio": As to each Land Receivable, the ratio, expressed as a
percentage,  of the principal  amount of such  Receivable  as of the  applicable
Cut-Off Date to the purchase price paid by the related Obligor for the parcel of
land (including taxes, insurance and any land improvements).

     "Lock-Box  Account":  An account  maintained  in the name of the  Indenture
Trustee  at a  Lock-Box  Bank for the  purpose  of  receiving  Collections  from
Receivables.

     "Lock-Box Bank":  Fleet Bank, N.A., or any successor  thereto  appointed in
accordance with the terms if this Agreement.

     "Majority Noteholders": As defined in Section 6.3 hereof.

     "Monthly  Payment":  With  respect to each  Receivable  and any  Collection
Period,  the payment of  principal,  if any, and interest due on the Due Date in
such Collection Period with respect thereto.

     "Monthly Report": The meaning provided in Section 4.12.

     "Moody's": Moody's Investors Service, Inc. or any successor thereto.

     "Mortgage":  Any mortgage,  deed of trust,  purchase money deed of trust or
deed  creating a first lien on an Interval to secure debt  granted by an Obligor
to the originator of the Receivable

                                      -12-
<PAGE>

with respect to the purchase of such  Interval  and/or the  contribution  of the
same to the Club and  otherwise  encumbering  the  related  Interval  to  secure
payments or other obligations under such Receivable.

     "Mortgage  Note":  The original note or other  instrument  of  indebtedness
evidencing the indebtedness of an Obligor under a Mortgage.

     "Net Income":  The aggregate,  for all years ending after the Closing Date,
of  the  consolidated  net  income  (loss)  of  Bluegreen  Corporation  and  its
consolidated Subsidiaries determined in accordance with GAAP.

     "New Equity":  The  aggregate  proceeds of all Equity  Offerings  after the
Closing Date.

     "Note":  Any one of the notes  substantially  in the form  attached  to the
Indenture as Exhibit A.

     "Note Account":  The segregated note account established in accordance with
Section 3.1 hereof and maintained at the Corporate Trust Office.

     "Note Monthly Interest": The "Note Monthly Interest" as defined in the Note
Purchase Agreement.

     "Note Principal Balance": The meaning set forth in the Indenture.

     "Note Purchase Agreement": The Note Purchase Agreement dated as of June 29,
2001, among the Issuer, the Depositor,  the Seller, the Servicer, the Purchasers
parties  thereto  and the Agent,  as the same may be  amended,  supplemented  or
otherwise modified from time to time.

     "Obligor": A Person obligated to make payments with respect to a Receivable
including any guarantor thereof.

     "Officer's Certificate":  A certificate signed by any Authorized Officer of
any Person delivering such certificate and delivered to the Indenture Trustee.

     "Operative Documents":  Collectively,  this Agreement,  the Indenture,  the
Certificate  of  Trust,  the  Trust  Agreement,   the  Note  Purchase  Agreement
(including  the  related  Fee Letter and all Joinder  Supplements  and  Transfer
Supplements),  the Custodial Agreement, the Notes, the Certificates,  the Backup
Servicing Agreement and the Lockbox Agreement.

     "Opinion  of  Counsel":  One or more  written  opinions of counsel who may,
except as otherwise  expressly  provided herein,  be counsel to the Seller or an
affiliate of the Seller and who shall be satisfactory  to the Indenture  Trustee
and the Majority Noteholders.

     "Original  Aggregate  Receivable  Balance":   The  aggregate  Cut-Off  Date
Principal Balance of all Initial Receivables.

     "Original Note Principal Balance": The amount set forth on the Note..

     "Outstanding": The meaning provided in the Indenture.

                                      -13-
<PAGE>

     "Owner Trustee": Wilmington Trust Company, as owner trustee under the Trust
Agreement, and any successor owner trustee under the Trust Agreement.

     "Owner": The Person in whose name a Note is registered in the Register.

     "Payment Date": The first Business Day of each month, commencing (i) if the
Initial  Addition Date is prior to the 15th day of any month, the first calendar
month after the Initial  Addition  Date or (ii)  otherwise  the second  calendar
month after the Initial Addition Date.

     "Percentage  Interest":  With  respect to any Note at any time, a fraction,
expressed as a decimal,  the  numerator of which is the Note  Principal  Balance
represented  by such Note and the  denominator  of which is the  aggregate  Note
Principal   Balance   represented  by  all  the  Notes.   With  respect  to  the
Certificates,  the portion  evidenced  thereby,  expressed as a  percentage,  as
stated  on the face of such  Certificate,  all of which  shall  total  100% with
respect to the Certificates.

     "Permitted Liens":

          (a)  with respect to Receivables in the Asset Pool:

               (i)  Liens for  state,  municipal  or other  local  taxes if such
                    taxes shall not at the time be due and  payable,  (ii) Liens
                    in  favor  of  the  Depositor   created   pursuant  to  this
                    Agreement,  and  (iii)  Liens in favor of the  Trust and the
                    Indenture Trustee created pursuant to the Indenture and this
                    Agreement;

          (b)  with respect to the related Interval:

               (i)  materialmen's,  warehousemen's,  mechanics'  and other Liens
                    arising  by  operation  of  law in the  ordinary  course  of
                    business for sums not due,  (ii) Liens for state,  municipal
                    or other  local taxes if such taxes shall not at the time be
                    due and  payable,  (iii)  Liens in  favor  of the  Depositor
                    created  pursuant to this Agreement,  (iv) Liens in favor of
                    the Trust and the Indenture  Trustee created pursuant to the
                    Indenture and this Agreement, and (v) the Obligor's interest
                    in the Interval under the Receivable whether pursuant to the
                    Club Trust Agreement or otherwise; and

          (c)  with respect to Receivables and related Assets in the Asset Pool,
               any and all rights of the  Beneficiaries  referred to in the Club
               Trust Agreement under such Club Trust Agreement.

     "Person":   Any  individual,   corporation,   limited  liability   company,
partnership,   joint   venture,   association,   joint-stock   company,   trust,
unincorporated organization or government or any agency or political subdivision
thereof.

     "Principal Distribution Amount": As defined in the Indenture.

                                      -14-
<PAGE>

     "Purchase":  A purchase by the Trust of Receivables and related Assets from
the Depositor pursuant to Article II of this Agreement,  as described in Section
2.1(a) thereof.

     "Purchase   Date":   The  Initial  Purchase  Date  and  any  Addition  Date
thereafter.

     "Purchase  Documents":  Any purchase  agreement and related sale and escrow
documents  executed and delivered by an Obligor to the Seller or the  Additional
Resort  owners with respect to the purchase of an Interval  which is the subject
of a Receivable.

     "Purchase  Price":  With respect to a Receivable,  the fair market value of
such Receivable as mutually agreed by the Seller,  the Depositor and the Issuer,
provided that, upon the request of the Agent, from time to time the Seller,  the
Depositor  and the Issuer  shall  discuss the basis for  establishing  such fair
market value.

     "Purchased Receivable":  Any Receivable purchased pursuant to Article II of
this Agreement.

     "Qualified Hedge Counterparty": Any financial institution with a short term
rating of at least "A-1+" from S&P (or "A-1" if such institution has a long term
credit rating of "AA" or higher) and "P-1" from Moody's.

     "Qualified  Institution":  Either (a) the corporate trust department of the
Indenture Trustee, or (b) a depository  institution  organized under the laws of
the United States of America or any one of the states thereof or the District of
Columbia (or any domestic branch of a foreign bank), (i)(A) which has either (1)
a long-term unsecured debt rating of BBB or better by Standard & Poor's and Baa2
or better by Moody's or (2) a short-term unsecured debt rating or certificate of
deposit rating of A-2 or better by Standard & Poor's or P-2 or better by Moody's
or (B) the parent corporation of which has either (1) a long-term unsecured debt
rating of BBB or better by  Standard  & Poor's  and Baa2 or better by Moody's or
(2) a short-term  unsecured debt rating or certificate  deposit rating of A-2 or
better by Standard & Poor's and P-2 or better by Moody's and (ii) whose deposits
are insured by the Federal Deposit Insurance Corporation.

     "Qualified  Insurer":  Any insurance  company or surety or bonding  company
licensed  to do  business  and issue  insurance  in all  relevant  jurisdictions
(including,  in the case of an insurer under a Standard Hazard Insurance Policy,
the jurisdiction in which each Interval covered by such policy is located).

     "Rating Agency": Fitch, Moody's or Standard & Poor's.

     "RDI Receivable": Receivables which have been originated by RDI Group, Inc.

     "Receivable": A promissory note or other contract and its related security,
if any,  including  but not limited to any Mortgage or security  interest in the
related  Interval  (any  accessions  thereto) and any and all rights to payments
thereunder  including any assignment documents relating thereto (i.e. an allonge
relating  to a note).  Receivables  includes  Additional  Receivables.  The term
"Receivables" shall also include "Aruba Receivables" and "Land Receivables".

                                      -15-
<PAGE>

     "Receivable Balance": The actual unpaid principal balance of a Receivable.

     "Receivable  Rate":  With respect to each  Receivable,  the  interest  rate
specified in the related Mortgage Note.

     "Receivables Documents":  With respect to a Receivable,  the Receivable and
all documents related to such Receivable, including

               (i) the  original  of all  applicable  promissory  notes with the
          related  allonge or other  assignment  attached  as  required  by this
          Agreement  or  the  Custodial   Agreement,   signed  (which  maybe  by
          facsimile)  by an  authorized  officer  of the  Seller  and  showing a
          complete  chain  of  endorsements  from  the  original  payee  of  the
          promissory  note  to the  Indenture  Trustee:  "Pay  to the  order  of
          _____________,  without recourse  representation or warranty except as
          provided in the Sale and Servicing Agreement",

               (ii) the original  recorded or unrecorded  Mortgage with evidence
          of  delivery  for filing  (or,  if the  original  of the  recorded  or
          unrecorded  Mortgage  is not  available,  a copy of such  recorded  or
          unrecorded  Mortgage (with  evidence of delivery for filing),  in each
          case certified by an authorized officer of the Seller to be a true and
          correct copy)

               (iii) an original  assignment of the original Mortgage (which may
          be a part of a blanket  assignment  of more than one  Mortgage  Loan),
          from the Seller to the  Indenture  Trustee,  with  evidence  of proper
          recordation,  signed  by an  authorized  officer  of  the  Seller  (or
          evidence from a third party that such  assignment  has been  submitted
          for recordation),

               (iv) the UCC financing  statement,  if any,  evidencing  that the
          security  interest  granted  under such  Receivable,  if any, has been
          perfected under applicable state law,

               (v)  a  copy  of  any  recorded  or   unrecorded   warranty  deed
          transferring  legal  title  to the  related  Interval  or  parcel,  as
          applicable, to the Obligor,

               (vi)  an  original  lender's  title  insurance  policy  or  title
          commitment or master policy  referencing  such Receivable and covering
          the  Indenture  Trustee  for the benefit of the Agent on behalf of the
          Noteholders, (vii) payment records,

               (vii)  the  original  of any  related  assignment,  modification,
          guarantee or assumption agreement or, if such original is unavailable,
          a copy thereof certified by an authorized  officer of the Seller to be
          a true and correct  copy,  current and  historical  computerized  data
          files,

               (viii)  the   original  of  any   assumption   agreement  or  any
          modification extension or refinancing agreement,

               (ix) the Purchase Documents,

                                      -16-
<PAGE>

               (x) the Assignment of such Receivable,

               (xi)  the  application  of the  related  Obligor  to  obtain  the
          financing extended by such Receivable,

               (xii)  all  other   papers  and  records  of  whatever   kind  or
          description,  whether developed or originated by Bluegreen, the Seller
          or  another  Person,  required  to  document,  service  or  enforce  a
          Receivable and

               (xiii)  any  additional  amendments,   supplements,   extensions,
          modifications  or  waiver  agreements  required  to be  added  to  the
          Receivables Document pursuant to this Agreement,  the Credit Policy or
          the other Operative Documents.

     "Recoveries":  Any and all recoveries on account of a Defaulted Receivable,
including,  without  limitation,  any and all  cash  proceeds  from  the sale of
repossessed or foreclosed  Interval or other  property,  Insurance  Proceeds and
amounts related to overdue  interest,  as well as any amounts  received from the
Servicer Purchase Option.

     "Register":  The note  register  maintained  by the Registrar in accordance
with  Section  2.3 of the  Indenture,  in which the names of the  Owners are set
forth.

     "Registrar":  The  Indenture  Trustee,  acting in its capacity as Registrar
appointed  pursuant  to  the  Indenture,  or any  duly  appointed  and  eligible
successor thereto.

     "Remarketing   Fees":   With  respect  to  the  Servicer's   activities  of
remarketing  an Interval  relating to a Defaulted  Receivable an amount equal to
50% of the gross resale proceeds of such Interval.

     "Replaced  Receivable":  Any  Receivable  which is  removed  from the Trust
Estate pursuant to a substitution as set forth in Section 2.5.

     "Repurchase  Price":  With  respect to any  Receivable  purchased  from the
Issuer on any date pursuant to Section 2.2 or 2.4 hereof, an amount equal to the
sum of (i) the Receivable Balance of such Receivable as of the date of purchase;
and (ii) all accrued and unpaid  interest on such  Receivable  to the end of the
Collection  Period  preceding the Payment Date on which such Repurchase Price is
included in Available Funds. With respect to any Defaulted  Receivable purchased
from the Issuer on any date pursuant to Section 4.11 hereof,  an amount equal to
the  greater  of (A) the  product  of (i) 24% and (ii) the  initial  Receivables
Balance for such Receivable at origination and (B) the fair market value of such
Defaulted Receivable, as determined by the Servicer.

     "Required Hedge Amount":  means 85% of the Eligible  Receivable  Balance or
such lesser amounts specified by the Agent in writing.

     "Required Payment": With respect to any Payment Date, the aggregate amounts
owed and  distributable  pursuant  to Section  3.2(a)(i)  through  (vii) on such
Payment Date.

                                      -17-
<PAGE>

     "Reservation System": The reservation system utilized by the Club and owned
and managed by the Club Managing  Entity or the services  contracted by the Club
Managing Entity with a third party.

     "Reserve Account": The segregated reserve account established in accordance
with Section 3.1 hereof and maintained at the Corporate Trust Office.

     "Reserve  Requirement":  With respect to any Payment Date, if the Borrowing
Base is less than  $5,000,000 as of the related  Determination  Date,  $500,000,
otherwise zero.

     "Resort Interest": As defined in the Club Trust Agreement.

     "Resorts":  Those certain  timeshare  vacation  resorts listed on Exhibit E
hereto and any Additional Resorts.

     "SAIF":  The  Savings  Association  Insurance  Fund,  as from  time to time
constituted,  created  under the  Financial  Institutions  Reform,  Recovery and
Enhancement Act of 1989 or, if at any time after the execution of this Agreement
the Savings Association Insurance Fund is not existing and performing duties now
assigned to it, the body performing such duties on such date.

     "Securities Act": The Securities Act of 1933, as amended.

     "Seller": As defined in the preamble.

     "Servicer": As defined in the preamble.

     "Servicer Extension Notice": As defined in Section 4.23 hereof.

     "Servicer  Purchase  Option":  The  Servicer's  (so long as the Servicer is
Bluegreen or an Affiliate  thereof) right (but not the obligation) to repurchase
the  Interval  relating  to a  Defaulted  Receivable  for  an  amount  equal  to
twenty-four  percent (24%) of the Obligor's initial  Receivable  Balance for the
Interval.

     "Servicer Termination Event": As defined in Section 6.1 hereof.

     "Servicing  Certificate":   A  certificate  completed  and  executed  by  a
Servicing Officer on behalf of the Servicer.

     "Servicing Fee Rate": 1.50% per annum.

     "Servicing  Fee":  With respect to any Payment Date, an amount equal to the
product  of (i)  1/12,  (ii) the  Servicing  Fee Rate,  and (iii) the  Aggregate
Outstanding  Receivable  Balance of all Receivables held by the Issuer as of the
first day of the preceding Collection Period.

     "Servicing   Officer":   Any  officer  of  the  Servicer  involved  in,  or
responsible for, the  administration and servicing of the Receivables whose name
and specimen  signature appear on a list of servicing  officers furnished to the
Indenture  Trustee by the  Servicer,  as such list may be  amended  from time to
time, initially set forth in Exhibit F hereto.

                                      -18-
<PAGE>

     "Servicing Standard": As defined in Section 4.1(b) hereof.

     "Stale  Intervals":  An  Interval  which  has not  been  remarketed  by the
Servicer which relates to a Receivable which is 360 days delinquent.

     "Standard Hazard Insurance  Policy":  With respect to each Receivable,  the
policy of fire and extended coverage insurance (and any federal flood insurance,
if and to the extent  applicable)  required  to be  maintained  for the  related
Interval as provided herein.

     "Standard  & Poor's":  Standard & Poor's,  a  division  of The  McGraw-Hill
Companies, Inc. or any successor thereto.

     "Subordinated Indebtedness":  Indebtedness of Bluegreen which is denoted in
Bluegreen's audited financial statements as "subordinated indebtedness".

     "Subsequent List of  Receivables":  A list, in the form of the initial List
of Receivables  delivered on the Initial  Purchase Date, but which list includes
and  separately  identifies,  with respect to such list  delivered in connection
with  a  conveyance  of  Additional  Receivables,   each  Additional  Receivable
transferred  to  the  Trust  pursuant  to  the  related  Addition  Agreement  or
Substitution Agreement.

     "Substitute  Receivable"  Any Receivable  delivered in  substitution  for a
Replaced Receivable pursuant to Section 2.5 hereof.

     "Subsidiary":  With respect to a Person,  (i) any corporation more than 50%
of the outstanding securities having ordinary voting power of which shall at the
time be owned or controlled, directly or indirectly, by such Person or by one or
more of its Subsidiaries or by such Person and one or more of its  Subsidiaries,
or (ii) any partnership,  association,  joint venture, limited liability company
or similar business organization more than 50% of the ownership interests having
ordinary  voting  power  of which  shall at the time be so owned or  controlled.
Unless otherwise  expressly  provided,  all references  herein to a "Subsidiary"
shall mean a Subsidiary of Bluegreen  Corporation  but in no event will the term
"Subsidiary" include the Trust.

     "Substitution Agreement": As defined in Section 2.5.

     "Tangible Net Worth":  Consolidated Net Worth minus Intangible  Assets plus
Subordinated Indebtedness.

     "Test  Date":  With  respect  to any  Fiscal  Month,  the 10th of the month
immediately  following such Fiscal Month,  or if such day is not a Business Day,
the next succeeding  Business Day. For example,  if a Fiscal Month ended on July
28th,  the related Test Date would be August 10th and if such Fiscal Month ended
on August 2nd , the related Test Date would also August 10th.

     "Tested  Asset":  Each  asset  serviced  by the  Servicer  other  than land
receivables, RDI Receivables, sampler loans and conversion loans.

                                      -19-
<PAGE>

     "Time Share  Association":  A not-for-profit  corporation  under applicable
state law which is  responsible  for  operating  and  maintaining a Resort or an
Additional  Resort  pursuant  to the terms of a  declaration  and/or  time share
declaration.

     "Time Share Documents":  With respect to any Resort, the documents relating
to the sale of Intervals by the Seller, its Subsidiaries or RDI Group, Inc.

     "Transfer  Condition":  With respect to any date of  determination  and any
Substitute  Receivable  or  Defaulted  Receivable  repurchased  from  the  Trust
pursuant  to  Section  2.5 or 4.11  hereof,  the  transfer  condition  shall  be
satisfied  if  that  after  giving  effect  to  such  transfer,   the  Aggregate
Outstanding Receivable Balance (determined as of the applicable Cut-Off Date for
each  such   Receivable)  of  all  Substitute   Receivables  and  all  Defaulted
Receivables  repurchased pursuant to Section 2.5 or 4.11 hereof is less than 20%
of the Aggregate  Outstanding  Receivable Balance all Eligible Receivables as of
such date of determination.

     "Trust  Agreement":  The Trust  Agreement dated as of June 29, 2001 between
the  Depositor,  GSS Holdings,  Inc. and the Owner  Trustee,  as the same may be
amended, supplemented or otherwise modified from time to time.

     "Trust Estate": As defined in the Indenture.

     "UCC": The Uniform Commercial Code as in effect on the date hereof and from
time to time in effect in New York;  provided,  however,  in the event that,  by
reason of mandatory provisions of law, any and all of the attachment, perfection
or priority of the Lien of the Depositor,  the Trust or the Indenture Trustee in
and to the Assets is governed by the Uniform  Commercial  Code as in effect in a
jurisdiction  other  than the  State of New York,  the term UCC  shall  mean the
Uniform  Commercial Code as in effect in such other jurisdiction for purposes of
the provisions  hereof relating to such  attachment,  perfection or priority and
for purposes of definitions related to such provisions.

     "Unit(s)": One individual air-space condominium unit, cabin, villa, cottage
or townhome within a Resort or Additional  Resort,  together with all furniture,
fixtures and  furnishings  therein,  and together  with any and all interests in
common elements  appurtenant  thereto,  as provided in the related  Declaration;
provided that the definition of "Unit" shall not include or apply to those units
relating  a   campground/tent   site,   recreational   vehicle   site  or  other
non-permanent building or structure.

     "Upgrade":  An event  whereby  an  Obligor  purchases  a greater  number of
Vacation Points than such Obligor previously had.

     "Vacation Points": As defined in the Club Trust Agreement.

     Section  1.2. Use of Words and Phrases.  "Herein",  "hereby",  "hereunder",
"hereof", "hereinbefore", "hereinafter" and other equivalent words refer to this
Agreement as a whole and not solely to the particular  section of this Agreement
in which any such word is used. The  definitions set forth in Section 1.1 hereof
include both the singular and the plural.  Whenever used in this Agreement,  any
pronoun shall be deemed to include both singular and plural and to

                                      -20-
<PAGE>

cover all genders.  The words  "including"  and "include"  shall be deemed to be
followed by the words "without limitation".

     Section 1.3. Captions;  Table of Contents. The captions or headings in this
Agreement  and the  Table of  Contents  are for  convenience  only and in no way
define,  limit or  describe  the scope  and  intent  of any  provisions  of this
Agreement. Section references are to this Agreement unless otherwise stated.

     Section 1.4. Opinions.  Each opinion with respect to the validity,  binding
nature and  enforceability  of documents or Notes may be qualified to the extent
that  the  same  may  be   limited   by   applicable   bankruptcy,   insolvency,
reorganization,  moratorium or other similar laws  affecting the  enforcement of
creditors'  rights  generally  and by  general  principles  of  equity  (whether
considered  in a proceeding or action in equity or at law) and may state that no
opinion is expressed on the availability of the remedy of specific  enforcement,
injunctive  relief or any other  equitable  remedy.  Any opinion  required to be
furnished  by any Person  hereunder  must be  delivered  by  counsel  upon whose
opinion the addressee of such opinion may reasonably  rely, and such opinion may
state that it is given in reasonable reliance upon an opinion of another, a copy
of which must be attached,  concerning the laws of a foreign  jurisdiction.  Any
opinion  delivered  hereunder  shall be  addressed to the  Indenture  Trustee in
addition to other addressees.

                                END OF ARTICLE I

                                      -21-
<PAGE>

                                   ARTICLE II

                        REPRESENTATIONS AND WARRANTIES OF
                    THE DEPOSITOR, THE SERVICER, THE SELLER,
                 THE CLUB TRUST, THE CLUB TRUSTEE AND CONVEYANCE
                               OF THE RECEIVABLES

     Section 2.1.  Representations  and Warranties of the Depositor,  the Seller
and the Servicer.  (a) Each of the Depositor,  the Seller,  the Servicer and the
Backup  Servicer  individually,  and not jointly and  severally,  represents and
warrants as to itself that, as of the Closing Date and each Addition Date:

               (i) It is duly organized,  validly  existing and in good standing
          under  the laws of its  state of  incorporation  and has the power and
          authority  to own its assets and to transact  the business in which it
          is currently  engaged.  It is duly  qualified to do business and is in
          good  standing  in each  jurisdiction  in which the  character  of the
          business transacted by it or properties owned or leased by it requires
          such qualification and in which the failure so to qualify would have a
          material  adverse  effect on (a) its business,  properties,  assets or
          condition (financial or other), (b) its performance of its obligations
          under this Agreement and the other Operative  Documents to which it is
          a party, (c) the  enforceability of the Receivables or (d) the ability
          to foreclose on the related Intervals;

               (ii) It has the power and authority to make, execute, deliver and
          perform this Agreement and the other  Operative  Documents to which it
          is a party  and to  consummate  all of the  transactions  contemplated
          under this Agreement and the other Operative  Documents to which it is
          a  party,  and  has  taken  all  necessary  action  to  authorize  the
          execution,  delivery and  performance  of this Agreement and the other
          Operative  Documents  to  which  it  is a  party.  When  executed  and
          delivered,  this Agreement and the other Operative  Documents to which
          it is a party will constitute its legal,  valid and binding obligation
          enforceable  in accordance  with its terms,  except as  enforcement of
          such terms may be limited by bankruptcy,  insolvency,  reorganization,
          receivership,  moratorium or similar laws affecting the enforcement of
          creditors'  rights  generally  and by the  availability  of  equitable
          remedies;

               (iii) It holds all necessary  licenses,  certificates and permits
          from all government  authorities necessary for conducting its business
          as it is presently conducted. It is not required to obtain the consent
          of any other party or any consent,  license, approval or authorization
          from, or registration or declaration with, any governmental authority,
          bureau  or  agency  in  connection   with  the  execution,   delivery,
          performance,  validity or  enforceability  of this  Agreement  and the
          other  Operative  Documents  to which it is a party,  except  for such
          consents, licenses,  approvals or authorizations,  or registrations or
          declarations,  as shall have been  obtained or filed,  as the case may
          be, prior to the Closing Date;

                                      -22-
<PAGE>

               (iv) The  execution,  delivery and  performance of this Agreement
          and the other  Operative  Documents  to which it is a party by it will
          not  conflict  with or result in a breach of, or  constitute a default
          under, any provision of any existing law or regulation or any order or
          decree of any court  applicable to it or any of its  properties or any
          provision of its  organizational  documents,  or constitute a material
          breach of, or result in the creation or imposition of any lien, charge
          or encumbrance  upon any of its properties  pursuant to, any mortgage,
          indenture,  contract or other  agreement  to which it is a party or by
          which it may be bound;

               (v) No certificate of an officer,  statement furnished in writing
          or report  delivered  pursuant  to the  terms  hereof by it for use in
          connection with the purchase of the  Receivables and the  transactions
          contemplated  hereunder  and by the  other  Operative  Documents  will
          contain any untrue  statement of a material  fact,  or omit a material
          fact  necessary  to make the  certificate,  statement  or  report  not
          misleading;

               (vi) The  transactions  contemplated  by this  Agreement  and the
          other  Operative  Documents to which it is a party are in the ordinary
          course of its respective businesses;

               (vii) It is not  insolvent,  nor will it be made insolvent by the
          transfer of the Receivables, nor is it aware of any pending insolvency
          as to itself;

               (viii) It is not in violation  of, and the execution and delivery
          of this Agreement by it and its  performance  and compliance  with the
          terms of this Agreement and the other Operative  Documents to which it
          is a party will not  constitute a violation with respect to, any order
          or  decree of any court or any  order or  regulation  of any  federal,
          state,  municipal or governmental  agency having  jurisdiction,  which
          violation  would   materially  and  adversely   affect  its  condition
          (financial or  otherwise)  or  operations or any of its  properties or
          materially and adversely  affect the  performance of any of its duties
          hereunder;

               (ix)   There  are  no   actions  or   proceedings   against,   or
          investigations of it, pending or, to its knowledge, threatened, before
          any  court,  administrative  agency or other  tribunal  (A)  that,  if
          determined  adversely,  would  prohibit  it from  entering  into  this
          Agreement  and the other  Operative  Documents to which it is a party,
          (B) seeking to prevent  the  consummation  of any of the  transactions
          contemplated  by this Agreement or (C) that, if determined  adversely,
          would prohibit or materially and adversely  affect its  performance of
          its  obligations  under,  or the validity or  enforceability  of, this
          Agreement and the other Operative Documents to which it is a party;

               (x) The Seller  represents  and warrants that it did not and will
          not sell the Receivables to the Depositor and the Depositor represents
          and warrants that it did not and will not sell the  Receivables to the
          Issuer  with any  intent  to  hinder,  delay or  defraud  any of their
          respective creditors;

                                      -23-
<PAGE>

               (xi) Each of the Depositor and the Seller represents and warrants
          that it  acquired  title to the  Receivables  in good  faith,  without
          notice of any adverse claim; and

               (xii)  Each  of the  Depositor  and  the  Seller  represents  and
          warrants that the transfer,  assignment and conveyance of the Mortgage
          Notes and the  Mortgages by the Seller and the  Depositor  pursuant to
          this  Agreement  are not  subject  to the  bulk  transfer  laws or any
          similar statutory provisions in effect in any applicable jurisdiction.

               (xiii) All  pension or profit  sharing  plans of the Seller  have
          been fully funded in accordance with applicable obligations.

               (xiv)  Neither  the  Depositor  nor the Seller has dealt with any
          broker,  banker,  agent or other person  (other than the Agent and its
          Affiliates,   the  Indenture  Trustee  and  the  Custodian  and  their
          respective  counsel)  that  may  be  entitled  to  any  commission  or
          compensation in connection with the sale of the Receivables.

               (xv) The names and addresses of all the Lock-Box Banks,  together
          with  the  account  numbers  of  the  lock-box  accounts  of  Servicer
          (provided that Bluegreen or its Affiliate corporation is the Servicer)
          maintained in connection with the Operative Documents at such Lock-Box
          Banks,  are  specified  in Schedule  II (or have been  notified to the
          Indenture Trustee in accordance with Section 8.10).

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

               (xvii) Club Trust Agreement.  The Seller  represents and warrants
          that the Club Trust  Agreement,  of which a true and  correct  copy is
          attached hereto as Exhibit B, is in full force and effect.

               (xviii) The Seller  represents  and warrants  that the  Bluegreen
          Vacation  Club Trust is a an  arrangement  of  contractual  rights and
          obligations  duly  established  in  accordance  with  the  Club  Trust
          Agreement  under the laws of the State of Florida  for the  purpose of
          holding  and  preserving  certain  property  for  the  benefit  of the
          beneficiaries  referred  to in the  Club  Trust  Agreement.  The  Club
          Trustee has all necessary  trust and other  authorizations  and powers
          required to

                                      -24-
<PAGE>

          carry out its obligations  under the Club Trust Agreement in the State
          of Florida and in all other states in which it owns Resort  Interests.
          The Bluegreen  Vacation  Club Trust is not a  corporation  or business
          trust under the laws of the State of Florida.  The Bluegreen  Vacation
          Club Trust is not taxable as an  association,  corporation or business
          trust under federal law or the laws of the State of Florida;

               (xix) The Seller represents and warrants that the Club Trustee is
          a corporation duly formed, validly existing and in good standing under
          the laws of the State of Florida.  The Club Trustee is  authorized  to
          transact  business  in no  other  state.  The Club  Trustee  is not an
          affiliate of the Servicer and is in compliance  with the  requirements
          of  Chapter  721,  Florida  Statutes,  that it be  independent  of the
          Servicer;

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

               (xxi) The Seller represents and warrants that a certified copy of
          the Club Trust Agreement has been delivered to the Agent together with
          all amendments and supplements in respect thereof;

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

               (xxiii)  The Seller  represents  and  warrants  that there are no
          actions, suits, proceedings, orders or injunctions pending against the
          Bluegreen  Vacation  Club  Trust  or the  Club  Trustee,  at law or in
          equity, or before or by any governmental authority which, if adversely
          determined,  could  reasonably  be expect to have a  material  adverse
          effect on the Trust  Assets or the Club  Trustee's  ability to perform
          its obligations under the Operative Documents;

               (xxiv)  The Seller  represents  and  warrants  that  neither  the
          Bluegreen  Vacation  Club Trust nor the Club  Trustee has incurred any
          indebtedness   for  borrowed  money   (directly,   by  guarantee,   or
          otherwise);

               (xxv) The  Seller  represents  and  warrants  that all ad valorem
          taxes and other taxes and assessments  against the Bluegreen  Vacation
          Club Trust and/or its

                                      -25-
<PAGE>

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

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

               (xxvii)  The  Seller  represents  and  warrants  that  except  as
          expressly permitted in the Club Trust Agreement,  the Club Trustee has
          maintained the One-to-One  Beneficiary to Accommodation Ratio (as such
          terms are defined in the Club Trust Agreement);

               (xxviii)  The  Seller  represents  and  warrants  that  Bluegreen
          Vacation Club, Inc. is a non-stock  corporation  duly formed,  validly
          existing and in good standing under the laws of the State of Florida;

               (xxix) The Seller  represents  and warrants that upon purchase of
          the Receivables and related Trust Estate  hereunder,  the Issuer is an
          "Interest Holder  Beneficiary" under the Club Trust Agreement and each
          of the Receivables constitutes "Lien Debt", "Purchase Money Lien Debt"
          and "Owner Beneficiary Obligations" under the Club Trust Agreement;

               (xxx) The Seller represents and warrants that except as disclosed
          to the Agent in writing,  each Mortgage  associated  with a Receivable
          and  granted  by the  Club  Trustee  or  the  Obligor  on the  related
          Receivable,  as  applicable,  has been duly  executed,  delivered  and
          recorded by or pursuant to the  instructions of the Club Trustee under
          the Club Trust  Agreement  and such  Mortgage is valid and binding and
          effective  to create the lien and  security  interests in favor of the
          Indenture  Trustee.  Each of such  Mortgages was granted in connection
          with the financing of a sale of a Resort Interest.

          (b) The representations and warranties set forth in this Section shall
     survive  each  sale and  assignment  of  Receivables  to the  Issuer.  Upon
     discovery  of  a  breach  of  any   representations  and  warranties  which
     materially  and adversely  affects the interests of the Owners,  the Person
     discovering  such  breach  shall give  prompt  written  notice to the other
     parties. Within 30 days of its discovery or its receipt of notice of breach
     or,  with the prior  written  consent  of the  Agent,  such  longer  period
     specified  in such  consent,  the  Depositor,  the  Seller or the  Servicer
     (provided that Bluegreen Corporation or its Affiliate is the Servicer),  as
     appropriate,  shall cure such breach in all material respects or repurchase
     or  substitute  any  Receivable as to which the interests of the Owners are
     materially  and  adversely   affected  pursuant  to  Section  2.4  of  this
     Agreement.

                                      -26-
<PAGE>

     Section 2.2.  Representations  and  Warranties of the Seller  Regarding the
Receivables.  (a) The  Seller  represents  and  warrants  to the  Issuer and the
Indenture  Trustee for the benefit of the Owners,  as follows,  with  respect to
each Initial  Receivable  as of the Initial  Addition  Date and, with respect to
each Additional Receivable, as of the related Addition Date that:

               (i) payments due under the  Receivable are  fully-amortizing  and
          payable in level monthly  installments,  and such  obligation  bears a
          fixed rate of interest;

               (ii) the  Obligor  thereunder  has made a down  payment  by cash,
          check or credit  card of at least 10%  percent of the actual  purchase
          price  (including  closing  costs) of the  Interval  (which  cash down
          payment  may,  in the case of Upgrades  only,  be  represented  by the
          principal  payments on such Receivable  since its date of origination)
          and no part of such  payment  has been made or loaned  to  Obligor  by
          Bluegreen, the Depositor or an Affiliate thereof;

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

               (iv)  the  Obligor  is  not  an  Affiliate  of  Bluegreen  or any
          Subsidiary;   provided   that   solely  for  the   purposes   of  this
          representation,  a relative of an employee and  employees of Bluegreen
          or any Subsidiary (or any of its Affiliates) shall not be deemed to be
          an "Affiliate";

               (v) immediately  prior to the conveyance of the Receivable to the
          Depositor,  the Seller will own full legal and equitable title to such
          Receivable,  and the Receivable (and the Interval  related thereto) is
          free and clear of adverse claims,  liens and  encumbrances  and is not
          subject  to  claims  of  rescission,   invalidity,   unenforceability,
          illegality,  defense,  offset,  abatement,   diminution,   recoupment,
          counterclaim or  participation  or ownership  interest in favor of any
          other Person;

               (vi) the Receivable  (other than an Aruba  Receivable) is secured
          directly by a first priority Mortgage on the purchased Interval;

               (vii) the  timeshare  estate  mortgaged by or at the direction of
          each  Obligor  constitutes  a fee  interest  in real  property  at the
          related  Resort that entitles the holder of the interest to the use of
          a specific  property for a specified number of days each year or every
          other year;  the related  Mortgage has been  delivered  for filing and
          recordation  with  all  appropriate  governmental  authorities  in all
          jurisdictions  in which  such  Mortgage  is  required  to be filed and
          recorded to create a valid,  binding and enforceable first Lien on the
          related  Interval  and such  Mortgage  creates  a valid,  binding  and
          enforceable  first  Lien  on the  related  Interval,  subject  only to
          Permitted  Liens;  and the Seller is in compliance  with any Permitted
          Lien  respecting  the right to the use of such  Interval;  each of the
          Assignments of such related  Mortgage and each related  endorsement of
          the related Mortgage Note constitutes a duly executed,  legal,  valid,
          binding and enforceable assignment or endorsement, as the case may be,
          of such related

                                      -27-
<PAGE>

          Mortgage and related  Mortgage  Note,  and all monies due or to become
          due thereunder, and all proceeds thereof;

               (viii)  with  respect  to  an  Obligor  and a  particular  single
          Interval  purchased  by  such  Obligor,  there  is only  one  original
          Mortgage  and Mortgage  Note (and in the case of an Aruba  Receivable,
          only one purchase and finance  agreement);  all parties to the related
          Mortgage  and the related  Mortgage  Note (and in the case of an Aruba
          Receivable,  purchase  and finance  agreement)  had legal  capacity to
          enter into such Receivables  Documents and to execute and deliver such
          related Receivables Documents,  and such related Receivables Documents
          have been duly and properly  executed by such parties;  any amendments
          to such  related  Receivables  Documents  required  as a result of any
          mergers  involving  the Seller or its  predecessors,  to maintain  the
          rights of the Seller or its predecessors thereunder as a mortgagee (or
          seller in the case of the Aruba Receivables) have been completed;

               (ix)  at  the  time  the  related   originator   originated  such
          Receivable to the related Obligor,  such originator had full power and
          authority to originate  such  Receivable  and the Obligor had good and
          indefeasible  fee title or good and  marketable fee simple title or in
          the case of Aruba Receivables a cooperative  interest,  as applicable,
          to the Interval securing such Receivable, free and clear of all Liens,
          except for Permitted Liens;

               (x) the related Mortgage (or, in the case of an Aruba Receivable,
          the related  purchase and finance  agreement)  contains  customary and
          enforceable  provisions so as to render the rights and remedies of the
          holder  thereof  adequate  for the  realization  against  the  related
          Interval of the  benefits  of the  security  interests  intended to be
          provided thereby, including (a) if the Mortgage is a deed of trust, by
          trustee's  sale,  including  power of sale  and/or  (b)  otherwise  by
          judicial foreclosure or power of sale; there is no exemption available
          to the related  Obligor  which would  interfere  with the  mortgagee's
          right  to sell  at a  trustee's  sale or  power  of sale or  right  to
          foreclose such related Mortgage,  as applicable (or, in the case of an
          Aruba Receivable, the seller's right to sell or power of sale or right
          to foreclose in respect of the related Interval);

               (xi) the related Mortgage Note or promissory note, as applicable,
          is not and has not been secured by any  collateral  except the Lien of
          the related Mortgage or purchase and finance agreement, as applicable.

               (xii)  if a  Mortgage  secures  a  Receivable,  the  title to the
          related  Interval  is  insured  (or a  binding  commitment  for  title
          insurance,   not  subject  to  any  conditions   other  than  standard
          conditions  applicable  to all binding  commitments,  has been issued)
          under a mortgagee  title  insurance  policy  issued by a title insurer
          qualified  to do  business  in  the  jurisdiction  where  the  related
          Interval  is  located  in  a  form  generally  acceptable  to  prudent
          originators  of similar  mortgage  loans,  insuring  the Seller or its
          predecessor  and its successors and assigns,  as to the first priority
          mortgage  Lien of the  related  Mortgage  in an  amount  equal  to the
          outstanding  Receivable  Balance of such Receivable,  and otherwise in
          form and substance

                                      -28-
<PAGE>

          acceptable  to the Agent;  the Seller or its assign is a named insured
          of such mortgagee's  title insurance  policy;  such mortgagee's  title
          insurance policy is in full force and effect; no claims have been made
          under such  mortgagee's  title insurance policy and no prior holder of
          such  Receivable has done or omitted to do anything which would impair
          the coverage of such mortgagee's  title insurance  policy; no premiums
          for such  mortgagee's  title insurance  policy,  endorsements  and all
          special endorsements are past due;

               (xiii) the Seller has not taken (or omitted to take),  and has no
          notice  that the related  Obligor has taken (or omitted to take),  any
          action that would impair or  invalidate  the coverage  provided by any
          hazard, title or other insurance policy on the related Interval;

               (xiv) all applicable intangible taxes and documentary stamp taxes
          were paid as to the related Receivable;

               (xv) the proceeds of each Receivable  have been fully  disbursed,
          there is no obligation to make future  advances or to lend  additional
          funds  under  the   originator's   commitment  or  the  documents  and
          instruments evidencing or securing the Receivable and no such advances
          or loans have been made since the origination of the Receivable;

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

               (xvii)  other  than  Aruba   Receivables   each   Receivable   is
          principally and directly secured by an interest in real property;

               (xviii) each  Receivable  was  originated by the Seller or one of
          its Affiliates in the normal course of its business;  each  Receivable
          originated by the Seller or one of its Affiliates was  underwritten in
          accordance with its underwriting guidelines previously approved by the
          Agent; the origination, servicing and collection practices used by the
          Seller and its Affiliates with respect to each Receivable have been in
          all respects, legal, proper, prudent and customary;

                                      -29-
<PAGE>

               (xix) the related  Receivable is assignable to and by the obligee
          and its successors and assigns and the related  Interval is assignable
          upon liquidation of the related Receivable, without the consent of any
          other Person  (including any condominium  association,  homeowners' or
          timeshare association),  and there are no other restrictions on resale
          thereof except as may be imposed by law;

               (xx)  the  related  Mortgage  (or,  in  the  case  of  the  Aruba
          Receivables, the related lien) is and will be prior to any Lien on, or
          other interests relating to, the related timeshare estate;

               (xxi) there are no delinquent  or unpaid taxes,  ground rents (if
          any),  water  charges,  sewer rents or  assessments  outstanding  with
          respect to any of the Intervals,  nor any other  outstanding  Liens or
          charges affecting the Intervals that would result in the imposition of
          a Lien on the Interval  affecting the Lien of the Mortgage (or, in the
          case of the Aruba Receivables,  the purchase and finance agreement) or
          otherwise  materially affecting the interests of the Indenture Trustee
          on behalf of the Owners in the related Receivables;

               (xxii)  other  than  with  respect  to  delinquent   payments  of
          principal  or  interest  30 or fewer  days past due as of the  Cut-Off
          Date, there is no default,  breach, violation or event of acceleration
          existing  under any Mortgage,  the related  Mortgage Note or any other
          document or instrument evidencing, guaranteeing, insuring or otherwise
          securing the Receivable, and no event which, with the lapse of time or
          with  notice and the  expiration  of any grace or cure  period,  would
          constitute  a  material  default,   breach,   violation  or  event  of
          acceleration  thereunder;  and the  Seller  has not  waived  any  such
          material default, breach, violation or event of acceleration under the
          Mortgage, the Mortgage Note or any such other document or instrument;

               (xxiii)  neither the Obligor nor any other  Person has the right,
          by  statute,  contract  or  otherwise,  to seek the  partition  of the
          Interval;

               (xxiv) the Receivable has not been satisfied, canceled, rescinded
          or  subordinated,  in whole or in part; no portion of the Interval has
          been  released  from the Lien of the Mortgage  (or, in the case of the
          Aruba Receivables, the purchase and finance agreement), in whole or in
          part;  no  instrument  has been  executed  that would  effect any such
          satisfaction,  cancellation, rescission, subordination or release; the
          terms of the Mortgage (or, in the case of the Aruba  Receivables,  the
          purchase  and finance  agreement)  do not provide for a release of any
          portion of the Interval from the Lien of the Mortgage (or, in the case
          of the Aruba  Receivables,  the purchase and finance agreement) except
          upon the payment of the Receivable in full;

               (xxv) the Seller and any of its  Affiliates  and,  to the best of
          the Seller's knowledge,  each other party which has had an interest in
          the Receivable is (or,  during the period in which such party held and
          disposed  of  such  interest,  was)  in  compliance  with  any and all
          applicable filing,  licensing and "doing business" requirements of the
          laws of the state  wherein  the  Interval  is  located  to the  extent

                                      -30-
<PAGE>

          necessary  to permit  the  Seller to  maintain  or defend  actions  or
          proceedings  with respect to the Receivable in all appropriate  forums
          in such state without any further act on the part of any such party;

               (xxvi)  there is no current  obligation  on the part of any other
          person (including any buy down arrangement) to make payments on behalf
          of the Obligor in respect of the Receivable;

               (xxvii)  the Time Share  Associations  relating  to the Resort in
          which the related  Interval  is located  were duly  organized  and are
          validly  existing;  a manager (the "Manager")  manages such Resort and
          performs  services  for the Time Share  Associations,  pursuant  to an
          agreement   between  the  Manager  and  the   respective   Time  Share
          Associations,  such  contract  being in full  force  and  effect;  the
          Manager and the Time Share Associations have performed in all material
          respects all  obligations  under such agreement and are not in default
          under such agreement;

               (xxviii)  the Resort in which the related  Interval is located is
          insured in the event of fire,  earthquake,  or other  casualty for the
          full  replacement  value  thereof,  and in the event that the Interval
          should  suffer any loss covered by casualty or other  insurance,  upon
          receipt of any insurance  proceeds,  the Time Share  Associations  are
          required,  during the time such Interval is covered by such insurance,
          under the applicable governing instruments either to repair or rebuild
          the portions of the project in which the Interval is located or to pay
          such  proceeds to the holders of any Mortgage  (or, in the case of the
          Aruba  Receivables,  the purchase and finance  agreement) secured by a
          timeshare  estate in the portions of the project in which the Interval
          is  located;  the  Resort,  if located in a  designated  flood  plain,
          maintains flood insurance in an amount not less than the maximum level
          available  under the National Flood Insurance Act of 1968, as amended;
          each Resort has business interruption  insurance and general liability
          insurance in such amounts generally  acceptable in the industry;  each
          Resort's  insurance  policies  are in full  force  and  effect  with a
          generally acceptable insurance carrier;

               (xxix) the related  Mortgage or deed of trust (or, in the case of
          the Aruba  Receivables,  the purchase and finance agreement) gives the
          obligee and its successors and assigns the right to receive and direct
          the  application of insurance and  condemnation  proceeds  received in
          respect  of  the  Interval,   except  where  the  related  condominium
          declarations,  timeshare  declarations or applicable state law provide
          that insurance and condemnation  proceeds be applied to restoration of
          the improvements;

               (xxx) each  rescission  period  applicable to the  Receivable has
          expired;

               (xxxi) no selection procedures were intentionally utilized by the
          Seller  in  selecting  the  Receivables,  which the  Seller  knew were
          materially adverse to the Indenture Trustee or the Owners;

               (xxxii) the  residential  units related to the Receivables in the
          related  Resort  have  been  completed  in all  material  respects  as
          required by applicable state and

                                      -31-
<PAGE>

          local laws,  free of all defects that could give rise to any claims by
          the related  Obligors  under home  warranties  or  applicable  laws or
          regulations,  whether or not such claims  would  create  valid  offset
          rights  under the law of the State in which the Resort is located;  to
          the extent required by applicable law, valid certificates of occupancy
          for  such  residential  units  have  been  issued  and  are  currently
          outstanding;  the Seller or its Affiliate has complied in all material
          respects with all obligations and duties incumbent upon the developers
          under the related timeshare  declaration  (each a  "Declaration"),  as
          applicable, or similar applicable documents for the related Resort; no
          practice,  procedure or policy employed by the Time Share  Association
          in the conduct of its business violates any law, regulation,  judgment
          or agreement, including, without limitation, those relating to zoning,
          building, use and occupancy,  fire, health, sanitation, air pollution,
          ecological,  environmental  and toxic wastes,  applicable to such Time
          Share Association which, if enforced,  would reasonably be expected to
          (a) have a material  adverse impact on such  timeshare  association or
          the ability of such Time Share Association to do business,  (b) have a
          material  adverse impact on the financial  condition of the Time Share
          Association,  or (c)  constitute  grounds  for the  revocation  of any
          license,  charter,  permit or  registration  which is  material to the
          conduct of the  business  of the Time Share  Association;  the related
          Resort and the  present use  thereof  does not violate any  applicable
          environmental,   zoning  or  building  laws,   ordinances,   rules  or
          regulations  of  any  governmental  authority,  or  any  covenants  or
          restrictions of record, so as to materially adversely affect the value
          or use of such Resort or the performance by the Time Share Association
          of its  obligations  pursuant to and as  contemplated by the terms and
          provisions of the related Declaration; there is no condition presently
          existing,  and to the best  knowledge  of the  Seller,  no  event  has
          occurred or failed to occur prior to the date hereof,  concerning  the
          related  Resort  relating  to any  hazardous  or  toxic  materials  or
          condition,  asbestos or other  environmental  or similar matters which
          would  reasonably be expected to materially  and adversely  affect the
          present  use of such  Resort or the  financial  condition  or business
          operations of the related Time Share Association,  or the value of the
          Notes;

               (xxxiii)  except for Land  Receivables,  the  original  principal
          balance of such Receivable  does not exceed $25,000,  and with respect
          to Land Receivables, the original principal balance of such Receivable
          does not exceed $100,000;

               (xxxiv)  payments  with  respect to the  Receivable  are to be in
          legal tender of the United States;

               (xxxv) all monthly  payments on the Receivable  have been made by
          the  Obligor and not by the Seller or any  Affiliate  of the Seller on
          the Obligor's behalf;

               (xxxvi) the Receivable relates to a Resort;

               (xxxvii) the Receivable  constitutes  either "chattel  paper",  a
          "general  intangible" or an  "instrument"  as defined in the UCC as in
          effect in all applicable jurisdictions;

                                      -32-
<PAGE>

               (xxxviii) the sale, transfer and assignment of the Receivable and
          the related  Assets does not contravene or conflict with any law, rule
          or regulation or any contractual or other  restriction,  limitation or
          encumbrance,  and the sale,  transfer and assignment of the Receivable
          and related Assets does not require the consent of the Obligor;

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

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

               (xli) (i) no bankruptcy is currently existing with respect to the
          Obligor,  (ii) the Obligor is not  insolvent  and (iii) the Obligor is
          not an Affiliate of the Depositor or the Seller;

               (xlii) the Receivable  shall not have an initial term to maturity
          of more than 180 months;

               (xliii) except for Land  Receivables,  the  Receivable  shall not
          have a Receivable Rate less than 12.90% per annum;

               (xliv) the Obligor  has made at least two (2)  month's  aggregate
          required  payments with respect to the  Receivable  (not including any
          down payment);

               (xlv)  if a  Resort  is  subject  to  a  construction  loan,  the
          construction  lender shall have signed and delivered a non-disturbance
          agreement (which may be contained in such lender's  mortgage) pursuant
          to which  such  construction  lender  agrees not to  foreclose  on any
          Intervals  relating to  Receivables  which have been sold  pursuant to
          this Agreement;

               (xlvi) such Receivable is not an RDI Receivable;

                                      -33-
<PAGE>

               (xlvii)  the  Intervals  and  the  related  Resorts  are  free of
          material   damage  and  waste  and  are  in  good   repair  and  fully
          operational;  there is no  proceeding  pending or  threatened  for the
          total or partial  condemnation  of or affecting any Interval or taking
          of the Interval by eminent  domain;  the  Intervals and the Resorts in
          which the Intervals  are located are lawfully used and occupied  under
          applicable law by the owner thereof;

               (xlviii) the portions of the Resorts in which the  Intervals  are
          located  which  represent the common  facilities  are free of material
          damage and waste and are in good repair and  condition,  ordinary wear
          and tear excepted;

               (xlix) no foreclosure or similar proceedings have been instituted
          and are  continuing  with  respect to such  Receivable  or the related
          Interval;

               (l) with respect to Aruba Receivables only,  Bluegreen shall own,
          directly or indirectly,  100% of the economic and voting  interests of
          Bluegreen Properties, N.V.;

               (li) except for Land  Receivables,  no Receivable has an original
          term to maturity in excess of 180 months;

               (lii) the capital reserves and maintenance fee levels of the Time
          Share Associations related to the Resorts are adequate in light of the
          operating requirements of such Time Share Associations;

               (liii)  except as  required  by law,  the  Receivable  may not be
          assumed without the consent of the obligee;

               (liv)  none of the  Obligors  under the  Receivables  has had its
          rights under the Club Trust Agreement suspended;

               (lv) the Receivable is not a Defaulted Receivable; and

               (lvi)  if  such  Receivable  is a Land  Receivable,  the  related
          Loan-to-Sale Ratio is equal to or less than 75%;

               (lvii) no selection  procedures  adverse to the  interests of the
          Noteholders  shall have been utilized in selecting the Receivables for
          sale and transfer under the Operative Documents;

               (lviii)  except  as  approved  by  the  Agent  in  writing,  such
          Receivable  when combined  with each  Purchased  Receivable  would not
          cause any Receivables to be an Excluded Receivable; and

               (lix)  the  payments  under   Receivables   are  not  subject  to
          withholding taxes imposed by any foreign governments.

          (b)  It  is  understood  and  agreed  that  the   representations  and
     warranties  set forth in this Section shall  survive the  conveyance of the
     Receivables and the delivery of the

                                      -34-
<PAGE>

     respective  Receivables Documents to the Custodian or Indenture Trustee and
     the termination of the rights and  obligations of the Servicer  pursuant to
     Section 5.4 and 6.1.  Upon  discovery  by the  Depositor,  the Seller,  the
     Servicer,  the Custodian or the Indenture Trustee of a breach of any of the
     foregoing  representations  and warranties,  which materially and adversely
     affects the interest of the  Indenture  Trustee in the related  Receivable,
     the party  discovering  such breach shall give prompt written notice to the
     other parties.  Within 60 days of its discovery or its receipt of notice of
     breach, the Seller shall cure such breach in all material respects or shall
     purchase such Receivable from the Issuer or substitute a new Receivable for
     such Receivable  pursuant to Section 2.5. Any such repurchase by the Seller
     shall be at the Repurchase  Price and in each case shall be accomplished in
     the manner set forth in Section 2.4. For clarity, it is understood that the
     Receivables,  related  Receivables  Documents  and  other  Assets  will  be
     conveyed by the Seller to the  Depositor and by the Depositor to the Issuer
     pursuant to the terms hererof without recourse,  representation on warranty
     except as expressly provided therein. Without limiting the foregoing,  none
     of the Seller, the Depositor or any of their respective  subsidiaries shall
     be responsible for payments on the Receivables,  and any other credit risks
     associated  therewith  shall be borne by the Issuer and the  holders of any
     obligations of the Issuer.

     Section 2.3. Conveyance of the Receivables. By execution of this Agreement,
the Seller does hereby  transfer,  assign,  set over and otherwise convey to the
Depositor,  and  the  Depositor  does  hereby  transfer,  assign,  set-over  and
otherwise  convey to the  Issuer,  (i) all of its  respective  right,  title and
interest  in and to each  Receivable  identified  on the  List  of  Receivables,
including the related Receivables  Documents,  from time to time existing (x) at
the  close  of  business  on the  Cut-Off  Date,  in  the  case  of the  Initial
Receivables and (y) at the close of business on each Additional Cut-Off Date, in
the case of Additional  Receivables sold or transferred pursuant to Section 2.5,
(i) the Mortgages and other instruments or documents  securing such Receivables;
(ii) the portions of its  interest in any  Insurance  Policies  relating to such
Receivable;  (iii) each Assignment;  (iv) all rights under any Hedge Agreements;
and  (v)  all  payments  on and  proceeds  of any of  the  foregoing  after  the
applicable  Cut-Off Date (the property in clauses (i)-(v),  being the "Assets").
The transfer by the Seller to the  Depositor,  by the Depositor to the Issuer of
the  Receivables  set forth  herein is  absolute  and is intended by all parties
hereto to be treated as a sale by the Seller to the Depositor,  by the Depositor
to the  Issuer.  Pursuant  to the  Indenture,  the Issuer  will pledge the Trust
Estate to the Indenture  Trustee for the benefit of the Owners of the Notes. The
foregoing  does not  constitute and is not intended to result in the creation or
assumption by the Issuer,  the Custodian,  the Indenture Trustee or any Owner of
any  obligation  of the Seller,  the Servicer or any other Person in  connection
with the  Receivables  Documents or under any agreement or  instrument  relating
thereto, including any obligation to make future advances.

     In consideration of such transfers, the Depositor will pay to the Seller in
cash  a  purchase  price  equal  to  the  Purchase  Price  of  each   Receivable
transferred,  and the Issuer will pay to the Depositor in cash a purchase  price
equal to the Purchase Price of each Receivable  transferred.  The Purchase Price
will be paid on the Addition  Date related to  Receivables  transferred  on such
date.  To the extent that there is no Purchase  Price or the cash portion of the
Purchase  Price for the  Receivables is less than the fair market value thereof,
the  difference  shall be deemed a  capital  contribution  by the  Seller to the
Depositor.  The Purchase  Price shall be payable in full by wire transfer on the
related  Addition Date to an account  designated by the Seller and the Depositor
respectively on or before such Addition Date.

                                      -35-
<PAGE>

     In the event  that,  despite the express  intent of the  parties,  any such
conveyance is deemed to be a loan and not an absolute sale,  each of the Seller,
the Depositor and the Issuer intend that such conveyance be deemed to constitute
a security interest and the Seller hereby grants in favor of the Depositor,  and
the Depositor  hereby grants in favor of the Issuer a first  priority  perfected
security  interest  in and to the Trust  Estate  and that with  respect  to such
conveyance this Agreement shall constitute a security agreement under applicable
law, and that any subsequent  conveyances  pursuant to this  Agreement  shall be
deemed to be assignments of such secured party's security interest.

     In connection with the sale, transfer,  assignment, and conveyance from the
Seller to the  Depositor,  the Seller has filed,  in the  appropriate  office or
offices in the States of Florida and Massachusetts,  a UCC-1 financing statement
executed by the Seller as debtor,  naming the Depositor as secured party, naming
the  Indenture  Trustee  as  assignee  of the  secured  party  and  listing  the
Receivables  and  the  other  property   described  above  as  collateral.   The
characterization  of the Seller as the debtor and the  Depositor  as the secured
party in such financing  statements is solely for protective  purposes and shall
in no way be construed as being  contrary to the intent of the parties that this
transaction  be  treated  as a sale of the  Seller's  entire  right,  title  and
interest in the Receivables.  In connection with such filing,  the Seller agrees
that it shall cause to be filed all necessary  continuation  statements  thereof
and to take or cause to be taken such actions and execute such  documents as are
necessary to perfect and protect the Depositor's interest in the Receivables.

     In connection with the sale, transfer,  assignment, and conveyance from the
Depositor to the Issuer,  the Depositor has filed, in the appropriate  office or
offices in the States of Florida and Massachusetts,  a UCC-1 financing statement
executed by the Depositor as debtor,  naming the Issuer as secured party, naming
the  Indenture  Trustee  as  assignee  of the  secured  party  and  listing  the
Receivables  and  the  other  property   described  above  as  collateral.   The
characterization  of the  Depositor  as the debtor and the Issuer as the secured
party in such financing  statements is solely for protective  purposes and shall
in no way be construed as being  contrary to the intent of the parties that this
transaction  be treated as a sale of the  Depositor's  entire  right,  title and
interest in the Trust  Estate.  In  connection  with such filing,  the Depositor
agrees that it shall  cause to be filed all  necessary  continuation  statements
thereof and to take or cause to be taken such actions and execute such documents
as are  necessary  to perfect  and protect  the  Issuer's  interest in the Trust
Estate.

     In  connection  with the pledge of the Trust  Estate from the Issuer to the
Indenture  Trustee,  on behalf of the Owners of the Notes, the Issuer has filed,
in the appropriate office or offices in the State of Delaware, a UCC-1 Financing
Statement executed by the Issuer as debtor,  naming the Indenture  Trustee,  for
the  benefit of the Owners of the Notes,  as the  secured  party and listing the
Receivables and the other property described above as collateral.  In connection
with  such  filing,  the  Issuer  agrees  that it shall  cause  to be filed  all
necessary continuation  statements thereof and to take or cause to be taken such
actions and execute such  documents as are  necessary to perfect and protect the
Indenture  Trustee's  interest in the Trust Estate for the benefit of the Owners
of the Notes.

          (a) Each of the Club Trust,  the Club  Trustee,  the Depositor and the
     Seller hereby agrees (i) on or prior to the Initial  Addition  Date, in the
     case of the  Initial  Receivables  and (ii) on or  prior to the  applicable
     Addition Date, in the case of Additional Receivables, to

                                      -36-
<PAGE>

     make the appropriate entries in its general accounting records, to indicate
     that  Receivables  have  been  transferred  to the  Indenture  Trustee  and
     constitute  part of the  Issuer in  accordance  with the terms of the trust
     created thereunder.

          (b)  Neither  the  Custodian  nor  Indenture  Trustee  shall  have any
     responsibility  for reviewing any Receivables  Document except as expressly
     provided in this Section 2.3 or the Custodial  Agreement.  In reviewing any
     Receivables  Document pursuant to this Section, the Custodian shall have no
     responsibility  for determining  whether any document is valid and binding,
     whether  the  text  of  any  assignment  or  endorsement  is in  proper  or
     recordable  form  (except,  if  applicable,  to determine if the  Indenture
     Trustee  is the  assignee  or  endorsee),  whether  any  document  has been
     recorded  in   accordance   with  the   requirements   of  any   applicable
     jurisdiction,   or  whether  a  blanket  assignment  is  permitted  in  any
     applicable  jurisdiction,  whether  any Person  executing  any  document is
     authorized to do so or whether any signature thereon is genuine,  but shall
     only be required to determine whether a document has been executed, that it
     appears  to be what it  purports  to be,  and,  where  applicable,  that it
     purports to be recorded.

     Section 2.4. Acceptance by Indenture Trustee.  The Indenture Trustee hereby
acknowledges  the sale and assignment of the  Receivables.  If the Seller or the
Servicer  is given  notice  under  Section  2.1(b)  or  2.2(b)  of a breach of a
representation  as  provided  therein and if the Seller does not correct or cure
such omission or defect within the 30-day or 60-day period  specified in Section
2.1(b) or 2.2(b),  as the case may be, the Seller shall purchase such Receivable
from the Issuer as of the  Determination  Date in the month in which such period
expired at the Repurchase Price of such Receivable or substitute such Receivable
pursuant  to this  Section  2.5. In  addition,  pursuant  to Section  4.19,  the
Servicer  may,  but  shall  have no  obligation  to,  repurchase  certain  other
Receivables  by paying to the Indenture  Trustee for deposit to the Note Account
the  Repurchase  Price  therefor.  The  Repurchase  Price  for  the  repurchased
Receivable shall be deposited in the Note Account no later than the Business Day
prior the date on which such  repurchase  occurs.  Upon receipt by the Indenture
Trustee  of written  notification  of such  deposit  signed by an officer of the
Seller or the Servicer,  the Indenture Trustee or the Custodian shall release to
the Seller or the Servicer, as applicable,  the related Receivables Document and
the Indenture Trustee shall execute and deliver a release of lien in the form of
Exhibit G hereto.  It is understood and agreed that the obligation of the Seller
to repurchase or substitute any  Receivable as to which a material  defect in or
breach  exists  pursuant  to Section  2.2(b)  shall  constitute  the sole remedy
hereunder against the Seller respecting such defect or omission available to the
Depositor, the Issuer, the Owners and the Indenture Trustee on behalf of Owners.

     The Servicer  (provided that Bluegreen  Corporation or its Affiliate is the
Servicer) promptly  following the transfer of a repurchased  Receivable from the
Issuer  pursuant  to this  Section  2.4 shall  make  appropriate  entries in its
records to reflect such repurchase.

     Section  2.5.   Additional   Purchases,   Transfers  and   Substitution  of
Receivables.  On each Business Day on or prior to the Facility Termination Date,
subject to and in compliance  with the conditions set forth below and in Section
2.3, the Seller and the  Depositor  may at their option (x) replace a Receivable
currently  in the  Asset  Pool  (a  "Replaced  Receivable")  with  one  or  more
Additional  Receivables  (provided  that the  Aggregate  Outstanding  Receivable
Balance as of the related Cut-Off Date for the Receivables  being transferred to
the Asset Pool on any  Business  Day plus any Deposit  Amount  shall not be less
than the Aggregate Outstanding Receivable

                                      -37-
<PAGE>

Balance  of the  Replaced  Receivables);  or (y)  sell and  transfer  Additional
Receivables  to the  Issuer.  On the  Initial  Addition  Date in the case of the
Initial   Receivables   and  Addition  Date  with  respect  to  any   Additional
Receivables,  the Depositor shall purchase from the Seller, and the Seller shall
sell to the Depositor, and the Issuer shall purchase from the Depositor, and the
Depositor  will sell to the Issuer,  such  Initial  Receivables  and  Additional
Receivables,  in each case the Receivable  Balance sold being  established as of
the close of business  on the  applicable  Cut-Off  Date as set forth in Section
2.3. As a condition to each transfer and purchase of Receivables:

               (i)  the  Seller  and  the  Depositor  shall  have  provided  the
          Indenture Trustee and the Agent with an Addition Date Notice.

               (ii) the Servicer shall have delivered to the Indenture  Trustee,
          the Backup Servicer and the Agent an updated Computer Disk.

               (iii) the Seller and the  Depositor  shall have  delivered to the
          Indenture  Trustee a duly executed written  assignment in favor of the
          Issuer,  in substantially  the form of Exhibit H hereto (the "Addition
          Agreement") or, in the case of substitute  Receivables,  substantially
          in the form of Exhibit I hereto (the "Substitution Agreement"),  which
          shall include a Subsequent List of Receivables  listing the Additional
          Receivables;

               (iv)  after  giving  effect to such  conveyance,  the  Additional
          Receivables, the Transfer Condition shall remain satisfied;

               (v) the  Seller  and the  Issuer  shall  remit  to the  Indenture
          Trustee for deposit in the Note  Account all  principal  and  interest
          collected  in  respect  of  such  Initial  Receivables  or  Additional
          Receivables after the related Cut-Off Date;

               (vi)  each  of the  representations  and  warranties  made by the
          Seller and the  Depositor  pursuant to Article II hereof shall be true
          and correct as of the related  Addition  Date,  and the Seller and the
          Depositor shall have performed all obligations to be performed by them
          hereunder on or prior to such Addition Date;

               (vii)  with  respect  to  any  substitution  and  replacement  of
          Receivables, the Seller shall have deposited into the Lock-Box Account
          any Deposit Amount applicable thereto; and

               (viii) the Seller and the Depositor  shall, at their own expense,
          on or prior to the Addition  Date,  have  indicated in their  Computer
          Disk and Records that the  Additional  Receivables  identified  on the
          Subsequent   List  of  Receivables   in  the  Addition   Agreement  or
          Substitution  Agreement  as  applicable,  have  been sold to the Trust
          through the Depositor pursuant to this Agreement.

     Upon  satisfaction  of the  preceding  conditions  in  connection  with any
replacement  of  existing   Receivables  in  the  Asset  Pool  with   substitute
Receivables  effected in accordance with this Section 2.5, the Indenture Trustee
shall,  automatically  and without further action,  be deemed to transfer to the
Depositor,  free and clear of any Lien created pursuant to this Agreement or the

                                      -38-
<PAGE>

Indenture,  all of the right,  title and interest of the Issuer in, to and under
the related  Replaced  Receivable  and the Indenture  Trustee shall be deemed to
represent  and warrant  that it has the  corporate  authority  and has taken all
necessary  corporate  action to accomplish such transfer,  but without any other
recourse, representation or warranty, express or implied.

                                END OF ARTICLE II

                                      -39-
<PAGE>

                                  ARTICLE III

                      ACCOUNTS, DISBURSEMENTS AND RELEASES

     Section  3.1.  Establishment  of  Accounts.  The  Indenture  Trustee  shall
establish  and  maintain,  at the  Corporate  Trust Office (i) a separate  trust
account (the "Note Account")  titled "U.S. Bank Trust National  Association,  as
Indenture Trustee of BXG Receivables Note Trust 2001-A, Note Account" and (ii) a
separate trust account (the "Reserve  Account") titled "U.S. Bank Trust National
Association,  as Indenture  Trustee of BXG Receivables  Note Trust 2001-A,  Note
Reserve".  Each of the Note Account and the Reserve Account shall be an Eligible
Account.

     Section 3.2. Flow of Funds.  On each Payment  Date,  after giving effect to
(i)  Borrowings  on such  day  and the  disbursements  of the  proceeds  of such
Borrowings,  (ii) the  purchase of  Receivables  and the payment of the Purchase
Price for Receivables  transferred  pursuant hereto as reflected in the Computer
Disk delivered on such day and (iii) any purchases or repurchases of Receivables
by the  Seller or  Servicer  pursuant  to the  terms  hereof on such day and the
payment of the Purchase  Price  therefor,  the Indenture  Trustee shall withdraw
Available  Funds from the Note  Account  and any  amounts  transferred  from the
Reserve  Account to the Note  Account  pursuant  to Section  3.3(f) and make the
following  allocations  or  disbursements  from  such  Available  Funds  in  the
following  order of  priority,  and each such  disbursement  shall be treated as
having  occurred  only after all preceding  allocations  or  disbursements  have
occurred:

          (a) If such Payment Date is before the Facility Termination Date,

               (i) First,  to the  Servicer,  if not  Bluegreen  or an Affiliate
          thereof, the accrued and unpaid Servicing Fee;

               (ii)  Second,  to the Backup  Servicer,  the  accrued  and unpaid
          Backup Servicing Fee, and to the Owner Trustee,  the Indenture Trustee
          and the Custodian, the related accrued and unpaid fees then due;

               (iii) Third,  to the Agent for the benefit of the Noteholders for
          distribution pursuant to the Indenture, the Current Interest;

               (iv) Fourth, to the Agent, any Fees due and owing;

               (v) Fifth,  to the Agent for the benefit of the  Noteholders  for
          distribution  pursuant to the  Indenture,  the Principal  Distribution
          Amount for such Payment Date;

               (vi) Sixth,  to the Agent,  any other amounts due and owing under
          the Note Purchase Agreement;

               (vii) Seventh, to the Reserve Account, the excess, if any, of the
          Reserve  Requirement over the amount on deposit in the Reserve Account
          after making the distributions in clauses (i) through (vi) above;

                                      -40-
<PAGE>

               (viii)  Eighth,  to the  Servicer,  if  Bluegreen or an Affiliate
          thereof,  the  Servicing  Fee and any amounts  previously  paid by the
          Servicer pursuant to Section 3.4 below;

               (ix) Ninth, to the Custodian,  the Backup Servicer, the Indenture
          Trustee and the Owner Trustee,  to the extent not previously paid, for
          the  reimbursement  of the fees and  expenses  of the  Custodian,  the
          Backup Servicer,  the Indenture Trustee and the Owner Trustee incurred
          under the Operative Documents;

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

               (xi)  Eleventh,  to the  Certificate  Distribution  Account,  the
          remainder or such lesser amount as the Issuer (acting at the direction
          of the  Residual  Interest  Owner),  by prior  written  notice  to the
          Indenture  Trustee,   elects  to  have  distributed  to  the  Residual
          Certificateholders; and

               (xii)  Twelfth,  any  remainder  to remain on deposit in the Note
          Account.

          (b) If such Payment Date is on or after the Facility Termination Date,

               (i) First, to the Servicer the accrued and unpaid Servicing Fee;

               (ii)  Second,  to the Backup  Servicer,  the  accrued  and unpaid
          Backup Servicing Fee, and to the Owner Trustee,  the Indenture Trustee
          and the Custodian, the related accrued and unpaid fees then due;

               (iii) Third,  for  distribution  pursuant to the  Indenture,  the
          Current Interest;

               (iv) Fourth, to the Agent, any Fees due and owing;

               (v) Fifth,  to the Agent,  any other  amounts due and owing under
          the Note Purchase Agreement;

               (vi)  Sixth,  for  distribution  pursuant to the  Indenture,  the
          Principal  Distribution  Amount  until the Note  Principal  Balance is
          reduced to zero;

               (vii)  Seventh,  to  the  Custodian,  the  Backup  Servicer,  the
          Indenture Trustee and the Owner Trustee,  to the extent not previously
          paid, for the reimbursement of the fees and expenses of the Custodian,
          the Backup  Servicer,  the  Indenture  Trustee  and the Owner  Trustee
          incurred under the Operative Documents;

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

               (ix)  Ninth,  to  the  Certificate   Distribution   Account,  the
          remainder.

                                      -41-
<PAGE>

     Section 3.3. Investment of Accounts; Reserve Account.

          (a) Consistent with any  requirements of the Code, all or a portion of
     any  Account  held by the  Indenture  Trustee for the benefit of the Owners
     shall be invested and reinvested by the Indenture  Trustee in trust for the
     benefit of the Owners,  as directed  in writing by the  Servicer  (provided
     that Bluegreen  Corporation  or its Affiliate is the  Servicer),  in one or
     more  Eligible  Investments.  The bank serving as Indenture  Trustee or any
     Affiliate  thereof may be the  obligor on any  investment  which  otherwise
     qualifies as an Eligible  Investment.  No  investment  in any Account shall
     mature later than the Business Day  immediately  preceding the next Payment
     Date (except  that if such  Eligible  Investment  is an  obligation  of the
     Indenture  Trustee,  then such Eligible  Investment  shall mature not later
     than such Payment Date).

          (b) If any amounts are needed for  disbursement  from any Account held
     by the Indenture Trustee and sufficient  uninvested funds are not available
     to make such disbursement,  the Indenture Trustee shall cause to be sold or
     otherwise  converted to cash a sufficient amount of the investments in such
     Account.  No investments  will be liquidated  prior to maturity  unless the
     proceeds thereof are needed for disbursement.

          (c) Subject to the terms of the Indenture, the Indenture Trustee shall
     not in any way be held liable by reason of any insufficiency in any Account
     held by the  Indenture  Trustee  resulting  from any  loss on any  Eligible
     Investment  included therein (except to the extent that the bank serving as
     Indenture Trustee is the obligor thereon).

          (d) If the Servicer shall have failed to give investment directions to
     the Indenture  Trustee as specified in section (a) above then the Indenture
     Trustee  shall  invest in  federal  funds  described  in clause  (a) of the
     definition of "Eligible  Investments"  to be redeemable  without penalty no
     later than the Business Day immediately preceding the next Payment Date.

          (e) All income or other gain from  investments  in any Account held by
     the  Indenture  Trustee shall be deposited in such Account  immediately  on
     receipt,  and any loss resulting from such investments  shall be charged to
     such Account.

          (f) If on any  Determination  Date or Addition Date the Borrowing Base
     is less than  $5,000,000 the Issuer shall deliver to the Indenture  Trustee
     and the Indenture  Trustee shall deposit into the Reserve Account an amount
     equal  to the  Reserve  Requirement.  If on any  Payment  Date  before  the
     Facility  Termination  Date the amount of  Available  Funds  available  for
     distribution on such Payment Date is less than the amount necessary to make
     the Required  Payment for such Payment Date,  the  Indenture  Trustee shall
     withdraw  from the Reserve  Account and deposit  into the Note  Account for
     distribution  on such Payment Date the lesser of the amount then on deposit
     in the  Reserve  Account  and the  amount  necessary  to make the  Required
     Payment for such Payment Date. If on any Payment Date the amount on deposit
     in the Reserve  Account is greater than the Required  Reserve  Amount,  the
     Indenture  Trustee shall  withdraw the amount of such excess and deposit it
     into  the  Note  Account  for  distribution  on  such  Payment  Date.  Upon
     satisfaction  of all  amounts  owing  under  the  Operative  Documents  and
     termination  of the Indenture,  the Indenture  Trustee shall release to the
     Issuer or its  designee  any  amounts  remaining  on deposit in the Reserve
     Account.

                                      -42-
<PAGE>

     Section 3.4. Payment of Issuer Expenses.

          (a) The Servicer (provided that Bluegreen Corporation or its Affiliate
     is the Servicer)  shall promptly pay the amount of the fees and expenses of
     the Indenture Trustee, Backup Servicer, the Owner Trustee and the Custodian
     not covered or paid by Section 3.2.

          (b) The Seller shall pay  directly on the Closing Date the  reasonable
     fees and expenses of counsel to the Indenture Trustee,  the Custodian,  the
     Backup Servicer and the Owner Trustee.

          (c)  Each  of  the  Seller  and  Servicer   (provided  that  Bluegreen
     Corporation or its Affiliate is the Servicer)  accepts its  obligations and
     agrees to perform the duties  assigned to it in the Trust Agreement and the
     Indenture.

     Section 3.5. Accounting and Directions by Servicer. By 12:00 noon, New York
time, on the Business Day  preceding  each Payment Date (or such earlier date as
shall be  agreed  by the  Servicer  and the  Indenture  Trustee),  the  Servicer
(provided  that  Bluegreen   Corporation  is  the  Servicer)  shall  notify  the
Depositor,  the Seller,  the Indenture  Trustee and the Agent,  of the following
information  with respect to such Payment Date (which  notification may be given
by facsimile):

          (1)  The  Current  Interest  (based  upon  the Note  Monthly  Interest
               Calculation  provided by the Agent pursuant to Section 2.6 of the
               Note Purchase Agreement); and

          (2)  The Note  Principal  Balance  before giving effect to payments on
               such Payment Date.

     Section 3.6. Reports by the Servicer to Agent.

          (a)  Provided  that  Bluegreen  Corporation  or its  Affiliate  is the
     Servicer,  on each Payment Date, the Servicer shall prepare and transmit to
     the Owner  Trustee,  the  Indenture  Trustee  and the  Agent a report  that
     contains the following:

               (i) the amount of all distributions allocable to principal on the
          Notes;

               (ii) the amount of all distributions allocable to interest on the
          Notes;

               (iii) the amount of the  distribution  of any other  amounts with
          respect to the Owners of the Notes;

               (iv) all other amounts distributed pursuant to Section 3.2;

               (v) if the  interest  amount  portion  paid to the  Owners of the
          Notes on such Payment Date was less than the Current  Interest on such
          Payment Date, the Carry Forward Amount resulting therefrom;

               (vi) the principal  amount of the Notes which will be Outstanding
          after  giving  effect to any payment of principal on such Payment Date
          and the

                                      -43-
<PAGE>

          Borrowing  Base as of the close of  business  on the second  preceding
          Business Day;

               (vii) the weighted  average  Receivable  Rate of the  Receivables
          based on the Receivable Balances of the Receivables as of the close of
          business on the second preceding Business Day; and

               (viii) any other information reasonably requested by the Agent.

          (b)  Provided  that  Bluegreen  Corporation  or its  Affiliate  is the
     Servicer,  in addition,  on each Payment Date, the Servicer will furnish to
     the Owner Trustee,  the Indenture Trustee and the Agent,  together with the
     information   described  in  subsection   (a)   preceding,   the  following
     information:

               (i) the number and aggregate  principal  balances of  Receivables
          (a) 30-59 days  Delinquent,  (b) 60-89 days  Delinquent  and (c) 90 or
          more days  Delinquent,  as of the close of business on the last day of
          the  related   Collection   Period,  (d)  the  numbers  and  aggregate
          Receivable  Balances  of all  Receivables  as of the  last  day of the
          related  Collection  Period  and (e) the  percentage  that each of the
          amounts  represented  by  clauses  (a),  (b)  and (c)  represent  as a
          percentage of the respective amounts in clause (d); and

               (ii) all  Repurchase  Prices paid with  respect to the  preceding
          Collection Period.

     Section 3.7. Reports by Servicer.

          (a) Provided that Bluegreen Corporation or one of its Affiliate is the
     Servicer,   the  Servicer  shall  report  to  the  Indenture  Trustee,  the
     Depositor,  the Seller and the Agent, with respect to the amount on deposit
     in the Note Account and the identity of the investments  included  therein,
     as any of them may from time to time reasonably  request.  Without limiting
     the  generality of the  foregoing,  the Servicer  shall,  at the reasonable
     request of the Issuer, the Indenture Trustee, the Depositor,  the Seller or
     the Agent  transmit  promptly to each of them copies of all  accountings of
     receipts in respect of the Receivables.

          (b) Provided that Bluegreen Corporation or one of its Affiliate is the
     Servicer,  the Indenture  Trustee shall report to the Agent,  the Servicer,
     the Seller and the  Depositor  with  respect to any written  notices it may
     from time to time receive which  provide an Authorized  Officer with actual
     knowledge that any of the statements set forth in Section 2.2(a) hereof are
     inaccurate.

                               END OF ARTICLE III

                                      -44-
<PAGE>

                                   ARTICLE IV

                          ADMINISTRATION AND SERVICING
                                 OF RECEIVABLES

     Section 4.1. The Servicer.

          (a) The Servicer,  as independent  contract  servicer,  shall, for the
     period  described in Section 4.23,  service and administer the  Receivables
     and shall have full power and  authority,  acting alone (except as provided
     by Section 5.5), to do any and all things in connection with such servicing
     and  administration  which the Servicer may deem necessary or desirable and
     consistent with the terms of this  Agreement,  the terms of the Receivables
     and applicable law.

          (b)  Servicing  Standard.  Notwithstanding  anything  to the  contrary
     contained  herein,  the  Servicer,   in  servicing  and  administering  the
     Receivables,  shall employ or cause to be employed  procedures and exercise
     the same care that it  customarily  employs and  exercises in servicing and
     administering  Receivables for its own account, and shall otherwise service
     and  administer  the  Receivables  in accordance  with  accepted  servicing
     practices of prudent servicers of timeshare receivables and, (provided that
     Bluegreen  Corporation  or its  Affiliate  is  the  Servicer),  giving  due
     consideration  to the Owners'  reliance  on the  Servicer  (the  "Servicing
     Standard").  Provided that  Bluegreen  Corporation  or its Affiliate is the
     Servicer,  without  limiting the generality of the foregoing,  the Servicer
     shall:

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

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

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

                                      -45-
<PAGE>

          reasonably  acceptable  to the Indenture  Trustee,  or (c) provide the
          Indenture  Trustee with such other  security as the Indenture  Trustee
          may reasonably require.

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

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

               (vi)  Modifications  of  Receivables.   The  Servicer  shall  not
          reschedule,  revise  downward  or defer  payments on a  Receivable  or
          modify the terms or  conditions  of the  related  contract in a manner
          adverse to the Trust unless the Agent shall have  consented in writing
          to the  same,  provided  that  terminating  or  initiating  electronic
          deductions  from bank  accounts  of  Obligors  and  adjustment  in the
          related  Receivable  Rate,  each in  accordance  with the terms of the
          related Receivables  Documents,  will not constitute a modification of
          the related Receivable.

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

               (viii)  Compliance  With  Collection  Policy.  The Servicer shall
          comply in all material  respects with the Collection  Policy in effect
          on the Closing  Date (or as

                                      -46-
<PAGE>

          amended  from time to time with the consent of the Agent) and with the
          terms of the Receivables.

               (ix) Notices to  Obligors.  Promptly  after the Initial  Addition
          Date  and,  in any  event,  not  later  than  five (5)  Business  Days
          thereafter, the Servicer will direct all Obligors of Receivables,  and
          shall instruct all future Obligors of such  Receivables,  to remit all
          payments  with respect to such  Receivables  only (i) by check,  money
          order,  phone  payment,  or Western Union Quick Collect  mailed to, or
          generated by, an office of the Servicer, (ii) by check, wire transfer,
          money order or moneygram to the Lock-Box or Lock-Box  Account or (iii)
          by pre-authorized checking or credit card payment for deposit into the
          Lock-Box Account.

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

          (c) On and  after  such time as the  Indenture  Trustee  receives  the
     resignation  of, or notice of the removal of, the Servicer  from its rights
     and  obligations  under this  Agreement,  and with  respect to  resignation
     pursuant to Section  5.4,  after  receipt by the  Indenture  Trustee of the
     Opinion of Counsel required pursuant to Section 5.4, the Backup Servicer or
     the  Indenture  Trustee's  designee  shall  assume  all of the  rights  and
     obligations  of the  Servicer,  subject  to  Section  6.2.  Upon  any  such
     resignation or removal,  the Servicer shall,  upon request of the Indenture
     Trustee but at the expense of the Servicer,  deliver to the Backup Servicer
     or  the  Indenture  Trustee  all  documents  and  records  relating  to the
     Receivables and an accounting of amounts collected and held by the Servicer
     and otherwise effect the orderly and efficient transfer of servicing rights
     and obligations to the assuming party.

          (d) The Servicer  shall  deliver a list of  Servicing  Officers to the
     Indenture  Trustee on or before the Initial  Addition Date and shall revise
     such  list  from  time to time,  as  appropriate,  and  shall  deliver  all
     revisions promptly to the Indenture Trustee.

          (e) The  Servicer  (unless  the Backup  Servicer is acting as Servicer
     hereunder)  agrees to deposit into the Lock-Box Account pursuant to Section
     4.2(b)(iii)  from its own  funds an  amount  equal to the  Charge  Card Fee
     Payment assessed against each payment on a Receivable made by credit card.

                                      -47-
<PAGE>

     Section 4.2. Collection of Certain Receivable Payments.

          (a) The Servicer shall make  reasonable  efforts  consistent  with the
     Servicing  Standards to collect all payments called for under the terms and
     provisions of the Receivables  and shall follow such collection  procedures
     as shall be consistent with the Servicing Standard and without limiting the
     generality of the  foregoing,  the Servicer may in its discretion (i) waive
     any prepayment  penalty or late payment  charge or any  assumption  fees or
     other fees which may be collected in the ordinary  course of servicing such
     Receivable  and (ii)  arrange with an Obligor a schedule for the payment of
     interest,  principal and other  amounts due and unpaid;  provided that such
     arrangement is consistent with the Servicer's  policies with respect to the
     timeshare  receivables it owns or services and with Section 4.1;  provided,
     further,  that  notwithstanding  such  arrangement such Receivables will be
     included  in the  monthly  information  delivered  by the  Servicer  to the
     Indenture Trustee pursuant to Section 4.12.

          (b) Provided that Bluegreen Corporation or one of its Affiliate is the
     Servicer,  no later than two Business Days  following  receipt  thereof the
     Servicer  (other than payments made by credit card which shall be processed
     and  deposited  at least once per week) shall  instruct  Lock-Box  Banks to
     transfer  into the Note  Account the  following  payments  and  collections
     received  or  made  by  it  with  respect  to  each   Receivable   (without
     duplication):

               (i) all payments  received after the  applicable  Cut-Off Date or
          Additional Cut-Off Date on account of principal on the Receivables;

               (ii) all payments  received after the applicable  Cut-Off Date or
          Additional Cut-Off Date on account of interest on the Receivables;

               (iii) all Charge  Card Fee  Payments,  Recoveries  and  Insurance
          Proceeds;

               (iv) any amounts payable in connection with the repurchase of any
          Receivable pursuant to Sections 2.1, 2.2, 2.5 and 4.11;

               (v) amounts received in respect of the Hedge Agreement;

               (vi) to the extent not set forth above, any amount required to be
          deposited in the Note Account pursuant to Sections 3.3(e) or any other
          provision of this Agreement; and

               (vii) any  amounts  deposited  by the Issuer in the Note  Account
          pursuant to the last sentence of this Section 4.2(b).

     The  foregoing  requirements  respecting  deposits to the Note  Account are
exclusive,  it being  understood  that,  without  limiting the generality of the
foregoing,  the  Servicer  need not deposit,  or instruct the Lock-Box  Banks to
deposit, in the Note Account amounts  representing fees (including annual fees),
late  charge  penalties  or other  amounts  to which the  Servicer  is  entitled
pursuant  hereto or other  amounts  received by the Servicer for the accounts of
Obligors  for  application  toward  the  payment of taxes,  insurance  premiums,
assessments  and similar items.  On any day, the Issuer may deposit such amounts
as it may elect, in its sole discretion, in the Note Account.

                                      -48-
<PAGE>

          (c) All funds in the Note  Account  shall be  invested  as provided in
     Section 3.3.

          (d)  Provided  that  Bluegreen  Corporation  or its  Affiliate  is the
     Servicer,  each of the  Servicer  and Seller will  instruct all Obligors to
     cause all Collections of Receivables to be deposited directly to a Lock-Box
     Account with a Lock-Box Bank in accordance with Section  4.1(b)(ix)  above.
     Each  Lock-Box  Account  will be  maintained  in the name of the  Indenture
     Trustee,  in trust for, among others,  the Indenture  Trustee.  Neither the
     Servicer nor Seller will add or terminate  any bank as a Lock-Box Bank from
     those  listed in  Schedule  II or make any  change in its  instructions  to
     Obligors  regarding  payments to be made in respect of the  Receivables  or
     payments to be made to any Lock-Box Bank,  unless the Indenture Trustee and
     the Agent shall have received notice of, and the Agent shall have consented
     in writing  to,  such  addition,  termination  or change and duly  executed
     copies of  agreements  with each new Lock-Box  Bank.  If there shall be any
     dispute as the  application of funds in the Lock-Box  Account  allocable to
     the Receivables among any of the Seller, the Servicer,  the Depositor,  the
     Owners or the Agent, the Indenture Trustee shall follow the instructions of
     the Agent with respect thereto.

     Section 4.3.  Withdrawals  from the Note Account.  Provided that  Bluegreen
Corporation or its Affiliate is the Servicer,  the Indenture Trustee and, to the
extent  provided by the last  sentence of this Section  4.3, the Servicer  shall
withdraw or cause to be withdrawn  funds from the Note Account for the following
purposes pursuant to the written direction of the Servicer:

          (a) to make distributions pursuant to Section 3.2;

          (b) to withdraw any amount received from a Obligor that is recoverable
     and  sought to be  recovered  as a  voidable  preference  by a  trustee  in
     bankruptcy pursuant to the United States Bankruptcy Code in accordance with
     a final, nonappealable order of a court having competent jurisdiction;

          (c)  subject to Section 3.3 hereof,  to make  investments  in Eligible
     Investments;

          (d) to withdraw any funds  deposited in the Note Account that were not
     required to be deposited  therein or were deposited therein in error and to
     pay such funds to the appropriate Person; and

          (e) to clear and  terminate the Note Account upon the  termination  of
     this Agreement and to pay any amounts  remaining therein to the Certificate
     Distribution Account.

The Servicer  shall be  permitted to withdraw  amounts from the Note Account for
the  purposes  set forth in clauses  (b),  (c) and (d),  out of  proceeds of the
related Receivable.

     Section 4.4. Maintenance of Hazard Insurance; Property Protection Expenses.

     Provided that Bluegreen  Corporation or its Affiliate is the Servicer,  the
Servicer  shall cause to be maintained  with respect to each  Receivable  one or
more Standard Hazard  Insurance  Policies that provide,  at a minimum,  the same
coverage  as that  provided  by a  standard  form  fire  and  extended  coverage
insurance policy that is customary for resort timeshares,  providing coverage in
an amount at least equal to the lesser of (1) the maximum insurable value of the

                                      -49-
<PAGE>

related  Interval or (2) the  principal  balance due from the Obligor under such
Receivable; provided, however, that in any event the amount of coverage provided
by each  Standard  Hazard  Insurance  Policy  must be  sufficient  to avoid  the
application  of any  co-insurance  clause  contained  therein.  As  part  of its
collection responsibilities,  the Servicer shall proceed to collect the premiums
due on the Standard  Hazard  Insurance  Policies from the Obligors in accordance
with the Servicing Standard.  Each Standard Hazard Insurance Policy caused to be
maintained  by the Servicer  shall contain a standard loss payee clause in favor
of the Servicer and its successors and assigns.  Any amounts  received under any
such policies in respect of the  Receivables  shall be deposited  initially into
the Note Account within one Business Day of receipt.

     Section 4.5.  Fidelity  Bond.  Provided that  Bluegreen  Corporation or its
Affiliate is the Servicer,  the Servicer shall keep in force throughout the term
of this  Agreement  a policy or  policies  of  insurance  issued by a  Qualified
Insurer  covering  errors and omissions in the performance of its obligations as
Servicer hereunder,  including failure to maintain insurance as required by this
Agreement,  and a fidelity  bond in an aggregate  amount of at least  $5,000,000
covering  the  Servicer's  performance  under  this  Agreement.  Such  policy or
policies  and bond  shall be in such form and amount as is  generally  customary
among Persons that service pools of timeshare  receivables and which Persons are
generally  regarded as servicers  acceptable  to  institutional  investors.  The
Servicer  shall cause to be delivered to the  Indenture  Trustee and the Agent a
certificate  of  insurance  with  respect to such  fidelity  bond and  insurance
policy.

     Section  4.6.  Indenture  Trustee to  Cooperate.  Provided  that  Bluegreen
Corporation  or  its  Affiliate  is  the  Servicer,  upon  any  payment  of  the
outstanding  principal  balance  thereof  in full  or  other  satisfaction  of a
Receivable in accordance  with the Credit Policy,  the Servicer is authorized to
execute,   pursuant  to  the  authorization  contained  in  Section  4.1(b),  an
instrument of satisfaction  regarding the related Mortgage,  which instrument of
satisfaction shall be recorded by the Servicer if required by applicable law and
be delivered to the Person entitled thereto. It is understood and agreed that no
expenses incurred in connection with such instrument of satisfaction or transfer
shall be reimbursed from amounts deposited in the Note Account. If the Indenture
Trustee or the Custodian is holding the Receivables Documents, from time to time
and as  appropriate  for the servicing or  foreclosure  of any  Receivable,  the
Indenture  Trustee or the Custodian,  as the case may be, shall, upon request of
the Servicer and delivery to the Indenture Trustee or the Custodian, as the case
may be, of a Request  for  Release,  in the form  attached  as  Exhibit D to the
Custodial  Agreement,  signed  by  a  Servicing  Officer,  release  the  related
Receivables  Document to the Servicer,  and the Indenture  Trustee shall execute
such documents in the forms provided by the Servicer,  as shall be necessary for
the  prosecution  of any such  proceedings  or the  taking  of  other  servicing
actions.  Such  Request for Release  shall  obligate  the Servicer to return the
Receivables  Document to the Indenture  Trustee or the  Custodian  when the need
therefor  by the  Servicer  no longer  exists  unless  the  Receivable  shall be
liquidated,  in which case, upon receipt of a certificate of a Servicing Officer
similar to that  herein  above  specified,  the  Request  for  Release  shall be
released by the  Indenture  Trustee or the  Custodian  holding  such Request for
Release to the Servicer.

     Section  4.7.  Servicing  Compensation;  Payment  of  Certain  Expenses  by
Servicer.  Provided that Bluegreen Corporation or its Affiliate is the Servicer,
the Servicer shall be entitled to receive the Servicing Fee as compensation  for
its services in connection with servicing the Receivables.  Moreover, additional
servicing compensation in the form of prepayment penalties,

                                      -50-
<PAGE>

late payment charges, bad check charges or assumption fees or other receipts not
required to be deposited in the Note  Account  and,  subject to Section  4.2(b),
investment  income on the Note Account  shall be retained by the  Servicer.  The
Servicer shall be required to pay all expenses incurred by it in connection with
its activities  hereunder  (including payment of all other fees and expenses not
expressly  stated  hereunder  to be for the account of the Issuer or the Owners)
and shall not be  entitled  to  reimbursement  therefor  except as  specifically
provided herein.

     Section 4.8. Annual Statement as to Compliance.

          (a) The  Servicer  (in the  event  the  Servicer  is  Bluegreen  or an
     Affiliate thereof) will deliver to the Agent and the Indenture Trustee,  on
     or before April 30 of each year  commencing  April 30,  2002,  an Officer's
     Certificate  stating  that (a) a review of the  activities  of the Servicer
     during the prior calendar year and of its performance  under this Agreement
     was made under the supervision of the officer signing such  certificate and
     (b) to such  officer's  knowledge,  based on such review,  the Servicer has
     fully performed all its obligations under this Agreement,  or, if there has
     been a default in the performance of any such  obligation,  specifying each
     such default known to such officer and the nature and status thereof.

          (b) The Servicer  shall  deliver to the  Indenture  Trustee,  promptly
     after having obtained  knowledge  thereof,  but in no event later than five
     Business  Days  thereafter,   written  notice  by  means  of  an  Officer's
     Certificate  of any event which,  with the giving of notice or the lapse of
     time or both, would become a Servicer Termination Event.

          (c) Annual Servicing Report.

               (i) The  Servicer  shall  cause a firm of  nationally  recognized
          independent    certified   public    accountants   (the   "Independent
          Accountants")  (provided  that  if the  Backup  Servicer  becomes  the
          Servicer  hereunder,  such  accountants  need  not be  required  to be
          nationally  recognized)  to  deliver  to the Agent  and the  Indenture
          Trustee  beginning on or about March 31, 2002,  or April 30, 2002 with
          respect  to the Backup  Service),  with  respect to the twelve  months
          ended the immediately  preceding  March 31, 2002 (or other  applicable
          date), a statement (the "Accountant's  Report") addressed to the Board
          of Directors of the Servicer and Servicer will promptly provide a copy
          to the Agent and the  Indenture  Trustee to the effect  that such firm
          has audited the  financial  statements  of the Servicer and issued its
          report thereon and that such audit:

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

          (2)  so long as the Backup  Servicer is not the Servicer,  included an
               examination of documents and records relating to the servicing of
               the Receivables and the related Assets under this Agreement.

               (ii) The Accountant's Report shall further state that (so long as
          the Backup Servicer is not the Servicer):

                                      -51-
<PAGE>

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

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

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

     Section 4.9. Access to Certain  Documentation and Information Regarding the
Receivables. The Servicer shall, at such reasonable times during normal business
hours  and as  often  as may be  reasonably  requested,  permit  any  agents  or
representatives  of the Agent to inspect the Resorts and Additional  Resorts and
any of the  Servicer's  assets  (including  financial and  accounting  books and
records) relating thereto,  to examine and make copies of and abstracts from the
records and books of account of the Servicer or the Time Share  Association  (to
the extent  controlled by the Servicer) or serviced  under this Agreement and to
discuss its affairs,  finances and accounts with any of its officers,  employees
or independent  public  accountants.  The Servicer  acknowledges  that the Agent
intends to conduct such audits and inspections on at least an annual basis.  The
Servicer  shall  make  available  to the Agent  all  credit  information  in the
Servicer's  possession or under the Servicer's  control with respect to Obligors
as the Agent may reasonably  request.  Upon the Agent's request,  Servicer shall
furnish to Agent  evidence of payment of all real estate  taxes  relating to the
Resorts  and  Additional  Resorts  (except if the Backup  Servicer  becomes  the
Servicer  and does not possess  such  information).  The Servicer (to the extent
Bluegreen or an Affiliate  thereof is the Servicer  hereunder) shall be required
to pay all reasonable fees, costs and expenses incurred by the Agent for any and
all Resorts and Additional Resorts  inspections,  audits and any other diligence
relating to Servicer's finances or books or records.

     Section 4.10. Payment of Taxes Insurance and Other Charges. With respect to
each Receivable, the Servicer shall not be required to maintain records relating
to payment of taxes or insurance.

     Section 4.11.  Optional  Purchase of Defaulted  Receivables.  Provided that
Bluegreen  Corporation  or its  Affiliate is the  Servicer,  with respect to any
Defaulted Receivable, the Servicer shall have the right, but not the obligation,
to elect (by written notice sent to the Indenture  Trustee) (i) to purchase such
Defaulted  Receivable  from the  Issuer  at the  Repurchase  Price,  for its own
account,  in the manner  specified in Section 2.4 or (ii) to  substitute  one or
more  Receivables  for such  Defaulted  Receivable  in the manner  specified  in
Section 2.5, in each case provided that no Borrowing Base Deficiency  exists and
the  Transfer  Condition  remains  satisfied.   The  Repurchase  Price  for  any
Receivable  purchased  hereunder  shall be  deposited in the Note  Account.  The
Indenture  Trustee,  upon receipt of such  deposit,  shall  execute a release or
cause to be released to the purchaser of such Receivable the related Receivables
Document and shall execute a release of lien in the form of Exhibit G hereto and
the purchaser of such Receivable shall succeed to all the Issuer's right,  title
and interest in and to such  Receivable  and all security and documents  related
thereto.  Such assignment shall be an assignment  outright and not for security.
The purchaser of such Receivable  shall thereupon own such  Receivable,  and all

                                      -52-
<PAGE>

security and documents,  free of any further obligation to the Indenture Trustee
or the Owners with respect thereto.

     Section 4.12. Monthly Report. For each Collection Period during the term of
this Agreement,  Servicer will prepare the following  standard  industry reports
and submit them to the Agent and the Indenture  Trustee no later than the second
Business  Day prior to the related  Payment  Date  (collectively,  the  "Monthly
Report"), a form of which is attached hereto as Exhibit L.

     The  Monthly  Report  shall be  accompanied  by an  Officer's  Certificate,
certifying the accuracy of the Monthly  Report and that no Servicer  Termination
Event or event that with notice or lapse of time or both would become a Servicer
Termination Event has occurred, or if such event has occurred and is continuing,
specifying the event and its status;  provided however that this subparagraph of
Section  4.12  shall  not apply if the  Backup  Servicer  is acting as  Servicer
hereunder.

     Section  4.13.  Sales  and  Inventory  Reports.  Provided  that the  Backup
Servicer  is not  the  Servicer,  a  quarterly  report  showing  all  sales  and
cancellations  of sales of  Intervals  on Resorts  and  Additional  Resorts on a
resort by resort  basis,  in form and  content  reasonably  satisfactory  to the
Agent; and within thirty (30) Business Days after the end of each fiscal year an
annual  sales and  inventory  report  for the  Resorts  and  Additional  Resorts
detailing  the sales of all  Intervals  on a resort by resort  basis during such
fiscal year and the available inventory of Units and Intervals, certified by the
Servicer to be true,  correct and complete and otherwise in the form approved by
the Trust.

     Section 4.14.  Quarterly  Financial  Reports.  Within  forty-five (45) days
after the end of each of  Servicer's  (provided  the Servicer is Bluegreen or an
Affiliate thereof) first three fiscal quarterly periods each year (or, if later,
that date by which  Bluegreen is required to file financial  statements with the
Securities and Exchange Commission),  unaudited financial statements of Servicer
(provided  the Servicer is Bluegreen or an Affiliate  thereof)  certified by its
chief  financial  officer as well as, to the extent  requested  by the Agent and
available  to Servicer  (provided  the  Servicer is  Bluegreen  or an  Affiliate
thereof),   unaudited   bi-annual   financial   statements  of  the  Time  Share
Association.

     Section 4.15.

     Section 4.16.  Audit Reports.  To the extent  Bluegreen or its Affiliate is
the Servicer,  promptly upon receipt thereof,  one (1) 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.

     Section 4.17.  Other Reports.  To the extent  Bluegreen  Corporation or its
Affiliate is the Servicer,  such other reports,  statements,  notices or written
communications  relating  to the  Servicer,  the Time  Share  Associations,  the
Resorts or the Additional  Resorts as are available to Servicer and as the Agent
may reasonably require.

     Section  4.18.  SEC Reports.  To the extent  Bluegreen  Corporation  or its
Affiliate is the Servicer,  promptly upon their becoming publicly  available one
(1) copy of each financial

                                      -53-
<PAGE>

statement,  report,  notice or proxy  statement  sent by  Servicer  to  security
holders  generally,  and of each regular or periodic report and any registration
statement,  prospectus or written communication (other than transmittal letters)
in respect thereof filed by Servicer with, or received by Servicer in connection
therewith  from,  any  securities   exchange  or  the  Securities  and  Exchange
Commission or any successor agency.

     Section 4.19. Servicer Remarketing.  To the extent Bluegreen Corporation or
its  Affiliate  is  the  Servicer,  the  Servicer  shall  be  obligated  to  use
commercially  reasonable  efforts to remarket the Intervals related to Defaulted
Receivables.  The Servicer  shall not,  with respect to the  remarketing  of the
Intervals associated with the Defaulted Receivables and related Assets, make any
"adverse  selection" (i.e. the Servicer shall remarket the Intervals relating to
Assets with the same degree of care as  Servicer's  own  portfolio of Intervals)
with  respect  to  such  Assets  vis-a-vis  other  receivables  serviced  by the
Servicer.  The Servicer (if Bluegreen  Corporation or its Affiliate is acting as
Servicer) on behalf of the Trust and at the discretion of the Agent,  shall take
all necessary steps to have the record title of the applicable  Resort Interests
subject to such Defaulted  Receivables  continue to be held by the Club Trustee.
In such event,  the Servicer shall direct the Club Trustee,  directly or through
its agents to exercise the remedies provided for in the Club Trust Agreement, in
the  Receivables  themselves or in the other Club documents with respect to such
Defaulted Receivables and the obligors thereunder and the Servicer will remarket
the "Owner  Beneficiary  Rights" (as defined in the Club Trust Agreement) of the
obligors  under such  Defaulted  Receivables  with the  purpose of  effecting  a
recovery  in  respect of such  Defaulted  Receivables  or  finding  replacements
therefor.  The Servicer,  at the request of the Agent,  shall reserve its rights
under the Club Trust Agreement and/or the applicable Mortgages to obtain, at any
time,  record title and all  beneficial  interests  in respect of the  Intervals
related to Defaulted  Receivables.  All actions taken by the Servicer in respect
of any Defaulted Receivable shall, at all times, be carried out in a manner such
that none of the Trust,  the Agent,  the Owner Trustee or the Indenture  Trustee
shall,  under  applicable law, be deemed to be the developer or declarant of any
Resort,  Additional  Resort or the Club. The Servicer shall deposit the proceeds
associated  with  the  remarketing  of  the  Interval  related  to  a  Defaulted
Receivable  into the Lock-Box  Account and shall be paid the  "Remarketing  Fee"
associated  with such  Interval  from the  proceeds of the  remarketing  thereof
pursuant  to Section  3.2 or  pursuant  to the  Servicer  Purchase  Option.  The
Servicer (in the event the Servicer is Bluegreen or an Affiliate  thereof  other
than the Depositor)  shall at all times have the right (but not the  obligation)
to utilize the Servicer  Purchase  Option in lieu of performing the  remarketing
functions set forth in this Section.

     Section  4.20.  Administrative  Duties of the  Issuer.  The  Servicer  will
monitor all of the administrative duties of the Issuer pursuant to the Operative
Documents,  and advise the Issuer of all actions  required to be taken  pursuant
thereto.  In this regard,  the Servicer will prepare or cause to be prepared for
execution and deliver to the Issuer any and all forms, reports, notices or other
documents required of the Issuer pursuant to the Operative Documents. The Backup
Servicer  shall have no  responsibility  for any duties under this Section 4.20;
the  Depositor  shall assume the duties of the Servicer  under this Section 4.20
upon any termination of the Servicer pursuant to Section 6.1.

     Section 4.21. Financial Covenants of the Servicer.  So long as the Servicer
is Bluegreen, the Servicer makes the following covenants:

                                      -54-
<PAGE>

          (a) Minimum  Tangible  Net Worth.  The  Servicer  agrees to maintain a
     minimum Tangible Net Worth of $110,000,000  plus 50% of Net Income and 100%
     of New Equity.

          (b) Leverage  Ratio.  The Servicer agrees to maintain a Leverage Ratio
     of no more than 6:1.

          (c) On  any  Determination  Date,  (A)  the 3  month  rolling  average
     Delinquency  Ratio  (Serviced)  exceeds  8.0% or (B)  the 3  month  rolling
     average Default Ratio (Serviced) exceeds 10.0%.

     Section 4.22. Backup Servicer.

          (a) Prior to assuming  any of the  Servicer's  rights and  obligations
     hereunder the Backup  Servicer  shall only be  responsible to perform those
     duties and for only those obligations  specifically  imposed upon it by the
     provisions  of the Backup  Servicing  Agreement  herein,  and shall have no
     obligations  or  duties  under  any  agreement  to which it is not a party,
     including but not limited to the various agreements named herein.

     In the event of the  Termination  of the Backup  Servicing  Agreement,  the
Servicer shall appoint a successor Backup Servicer reasonably  acceptable to the
Agent and the Seller.

          (b) The Servicer shall have no liability,  direct or indirect,  to any
     party, for the acts or omissions of the Backup Servicer, whenever such acts
     or omissions occur whenever such liability is imposed.

          (c)  Notwithstanding  anything to the contrary herein, the Agent 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 Agent exercises its right
     to remove and replace  Concord  Servicing  Corporation as Backup  Servicer,
     Concord Servicing  Corporation shall have no further  obligation to perform
     the duties of the Backup Servicer under this Agreement.

          (d) The Servicer shall provide monthly, or as otherwise requested,  to
     the  Backup  Servicer,  or  its  agent,   information  on  the  Receivables
     sufficient to enable the Backup Servicer to assume the  responsibilities as
     successor servicer and collect on the Receivables.

          (e) Except as  provided in this  Agreement,  the Backup  Servicer  may
     accept  and  reasonably  rely on all  accounting,  records  and work of the
     Servicer without audit, and the Backup Servicer shall have no liability for
     the acts or omissions of the Servicer. If any error, inaccuracy or omission
     (collectively,  "Errors")  exists  in any  information  received  from  the
     Servicer,  and such Errors  should cause or  materially  contribute  to the
     Backup Servicer making or continuing any Errors  (collectively,  "Continued
     Errors"),  the Backup  Servicer  shall have no liability for such Continued
     Errors; provided, however, that this provision shall not protect the Backup
     Servicer against any liability that would otherwise be imposed by reason of
     willful  misconduct,  bad  faith  or gross  negligence  in  discovering  or
     correcting any Error or in the performance of its or their duties hereunder
     or under this Agreement.

                                      -55-
<PAGE>

          (f) The  Backup  Servicer  and  its  officers,  directors,  employees,
     representatives  and agents shall be  indemnified  by the Servicer from and
     against all  claims,  damages,  losses or  expenses  incurred by the Backup
     Servicer (including reasonable attorney's fees and expenses) arising out of
     claims asserted  against the Backup Servicer by third parties on any matter
     arising out of this Agreement to the extent the act or omission giving rise
     to the claim relates to an act or omission of the Servicer, the Seller, the
     Depositor or any of their  Affiliates  and accrues before the date on which
     the Backup  Servicer  assumes  the duties of  Servicer  hereunder,  and all
     claims,  expenses,  obligations,  liabilities,  losses, damages,  injuries,
     penalties,  stamp  or  other  similar  taxes,  actions,  suits,  judgments,
     reasonable costs and expenses (including  reasonable attorney's and agent's
     fees and  expenses) of whatever  kind or nature  regardless of their merit,
     demanded,  asserted  or claimed  against  the Backup  Servicer  directly or
     indirectly relating to, or arising from, claims against the Backup Servicer
     by reason of its  participation  in the transactions  contemplated  hereby,
     including without limitation all reasonable costs required to be associated
     with claims for damages to persons or property,  and reasonable  attorneys'
     and  consultants'  fees and expenses and court costs except for any claims,
     damages,  losses or expenses  arising from the Backup  Servicer's own gross
     negligence,  bad  faith  or  willful  misconduct.  The  obligations  of the
     Servicer  under this Section  4.22(g)  shall survive the  satisfaction  and
     discharge of this  Agreement or the earlier  resignation  or removal of the
     Backup Servicer.

     In the absence of bad faith on the part of the Backup Servicer,  the Backup
Servicer  may  conclusively  rely,  as to the  truth of the  statements  and the
correctness of the opinions expressed therein, upon any certificates or opinions
furnished  to the Backup  Servicer  which  conform to the  requirements  of this
Agreement.

     The Backup  Servicer  shall not be liable for any error of judgment made in
good faith by an officer or officers of the Backup Servicer,  unless it shall be
conclusively  determined  by a court of competent  jurisdiction  that the Backup
Servicer was grossly negligent in ascertaining the pertinent facts.

     Whenever in the  administration  of the  provisions  of this  Agreement the
Backup  Servicer shall deem it necessary or desirable that a matter be proved or
established prior to taking or suffering any action to be taken hereunder,  such
matter  (unless  other  evidence  in  respect  thereof  be  herein  specifically
prescribed)  may, in the absence of gross negligence or bad faith on the part of
the Backup  Servicer,  be deemed to be conclusively  proved and established by a
certificate  signed by one of the  Servicer's  officers,  and  delivered  to the
Backup Servicer and such certificate,  in the absence of gross negligence or bad
faith on the part of the Backup  Servicer,  shall be full  warrant to the Backup
Servicer of any action taken,  suffered or omitted by it under the provisions of
this Agreement upon the faith thereof.

     The Backup Servicer,  in its capacity as such, may consult with counsel and
the advice or any opinion of counsel  shall be full and  complete  authorization
and protection in respect of any action taken or omitted by it hereunder in good
faith and in accordance with such advice or opinion of counsel.

     The Backup  Servicer,  in its capacity as such,  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,
entitlement order, approval or other paper or document.

                                      -56-
<PAGE>

     The Backup Servicer, in its capacity as such, may execute any of the trusts
or powers  hereunder or perform any duties  hereunder  either  directly or by or
through agents,  attorneys,  custodians or nominees appointed with due care, and
shall not be responsible for any willful misconduct or negligence on the part of
any agent, attorney, custodian or nominee so appointed.

     Section 4.23. Retention of Servicer.  Bluegreen hereby covenants and agrees
to act as Servicer under this  Agreement for an initial term,  commencing on the
Initial  Addition Date and ending on the third Payment Date, which term shall be
extendible by the Agent, acting at the direction of a majority of the Percentage
Interests of the Notes,  for successive  three-month  terms ending on each third
successive Payment Date (or, pursuant to revocable written standing instructions
from time to time to Bluegreen,  for any specified  number of terms greater than
one). Each such notice (including each notice pursuant to standing instructions,
which shall be deemed  delivered at the end of  successive  monthly terms for so
long as such instructions are in effect) (a "Servicer  Extension  Notice") shall
be delivered by the Agent to the Servicer and shall be in substantially the form
of Exhibit K hereto.  Bluegreen  hereby  agrees that,  as of the date hereof and
upon its receipt of any such Servicer  Extension Notice,  Bluegreen shall become
bound,  for the initial term beginning on the Initial  Addition Date and for the
duration of the term covered by such notice, to continue as the Servicer subject
to and in accordance with the other provisions of this Agreement.

     Section 4.24. Continuation of Servicing. Upon any sale or other disposition
of some or all of the Receivables by the Indenture Trustee following an Event of
Default under the Indenture,  if requested by the Indenture  Trustee  (acting at
the  direction of the Agent on behalf of the Majority  Noteholders)  in writing,
the Servicer will continue to service such  Receivables  in accordance  with the
terms hereof in consideration  for continued payment of the Servicing Fee to the
Servicer in accordance with the terms hereof.

                                END OF ARTICLE IV

                                      -57-
<PAGE>

                                   ARTICLE V

                     THE SELLER, THE DEPOSITOR, THE SERVICER
                              AND THE CLUB TRUSTEE

     Section 5.1. Liability. The Seller, the Depositor and the Servicer shall be
liable in accordance herewith only to the extent of the obligations specifically
imposed upon and undertaken by the Seller, the Depositor or the Servicer, as the
case may be herein.

     Section 5.2. Merger or Consolidation.  Any Person into which the Depositor,
the  Seller  or the  Servicer  may be  merged  or  consolidated,  or any  Person
resulting from any merger,  conversion or  consolidation to which the Depositor,
the Seller or the Servicer  shall be a party,  or any Person  succeeding  to the
business of the Depositor,  the Seller or the Servicer shall be the successor of
the Depositor, the Seller, the Servicer, as the case may be, 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  Servicer  shall satisfy all the  requirements  of
Section 6.2(a) with respect to the qualifications of a successor  Servicer.  The
Depositor,  the Seller or the  Servicer  shall  provide  the Agent with 30 days'
prior notice of any such merger or consolidation.

     Section 5.3.  Limitation  on Liability of the Servicer and Others.  Neither
the Servicer,  the Seller, the Depositor or any of their respective directors or
officers or employees or agents shall be under any liability to the Issuer,  the
Indenture Trustee, the Owner Trustee, the  Certificateholders  or the Owners for
any action taken or for refraining  from the taking of any action by such Person
in good faith pursuant to this Agreement,  or for errors in judgment;  provided,
however,  that this provision shall not protect the Seller, the Depositor or any
of their  respective  directors or officers or  employees or agents  against any
liability which would otherwise be imposed by reason of its willful misfeasance,
bad faith or negligence in the performance of its duties  hereunder or by reason
of its reckless  disregard of its obligations and duties hereunder and that this
provision shall not protect the Servicer or any of their respective directors or
officers or employees or agents against any liability  which would  otherwise be
imposed by reason of its willful  misfeasance,  bad faith or gross negligence in
the performance of its duties  hereunder or by reason of its reckless  disregard
of its  obligations  and duties  hereunder.  The  Servicer  and any  director or
officer  or  employee  or agent of the  Servicer  may rely in good  faith on any
document of any kind prima facie  properly  executed and submitted by any Person
respecting any matters arising hereunder.

     Section 5.4. Servicer Not to Resign. Provided that Bluegreen Corporation or
its  Affiliate is the Servicer,  subject to the  provisions of Sections 4.23 and
5.2,  the  Servicer  shall not resign  from the  obligations  and duties  hereby
imposed  on it  except  (i)  upon  determination  that  the  performance  of its
obligations or duties hereunder are no longer  permissible  under applicable law
or are in  material  conflict  by  reason  of  applicable  law  with  any  other
activities  carried  on by it or  its  subsidiaries  or  Affiliates,  the  other
activities of the Servicer so causing such a conflict being of a type and nature
carried on by the Servicer or its subsidiaries or Affiliates at the date of this
Agreement  or (ii)  the  Servicer  has  proposed  a  successor  servicer  to the
Indenture Trustee and the Owners in writing and such proposed successor servicer
is reasonably acceptable to the Majority Noteholders; provided, however, that no
such resignation by the Servicer shall become effective

                                      -58-
<PAGE>

until such successor  servicer or, in the case of (i) above, the Backup Servicer
shall have assumed the Servicer's  responsibilities and obligations hereunder or
the Indenture  Trustee shall have designated a successor  servicer in accordance
with  Section  6.2.  Any such  resignation  shall not  relieve  the  Servicer of
responsibility  for any of the obligations  specified in Sections 6.1 and 6.2 as
obligations  that survive the  resignation or  termination of the Servicer.  Any
such determination permitting the resignation of the Servicer pursuant to clause
(i) above shall be evidenced  by an Opinion of Counsel to such effect  delivered
to the  Indenture  Trustee.  Notwithstanding  anything in this  Agreement to the
contrary,  in the event the Backup Servicer becomes the Servicer  hereunder,  at
any time thereafter,  the Backup Servicer may resign from its duties as Servicer
upon not less than 90 days' written  notice to the Agent,  the Depositor and the
Indenture Trustee.

     Section 5.5. Delegation of Duties. In the ordinary course of business,  the
Servicer at any time may  delegate  any of its duties  hereunder  to any Person,
including any of its Affiliates, who agrees to conduct such duties in accordance
with  standards  comparable to those set forth in Section 4.1.  Such  delegation
shall not relieve the  Servicer of its  liabilities  and  responsibilities  with
respect to such duties and shall not constitute a resignation within the meaning
of Section 5.4. The Servicer shall provide the Indenture  Trustee and the Backup
Servicer with written notice prior to the delegation of any of its duties to any
Person  other  than  any  of  the  Servicer's  Affiliates  or  their  respective
successors  and  assigns.  Notwithstanding  anything  to the  contrary  in  this
Agreement, the Backup Servicer, if acting as Servicer hereunder,  shall have the
right to resign from its duties  hereunder  upon 90 days' written  notice to the
Servicer, the Depositor, the Indenture Trustee and the Agent.

     Section 5.6.  Indemnification  of the Issuer by the Servicer.  The Servicer
shall indemnify and hold harmless the Issuer,  the Owners, the Custodian and the
Indenture  Trustee for the benefit of the Owners and their respective  officers,
directors,  agents and employees from and against any loss, liability,  expense,
damage or injury  suffered  or  sustained  by reason of the  Servicer's  willful
misfeasance,  bad faith or gross negligence in the performance of its activities
in  servicing  or  administering  the  Receivables  pursuant to this  Agreement,
including, but not limited to, any judgment, award, settlement,  reasonable fees
of counsel of its selection  and other costs or expenses  incurred in connection
with the defense of any actual or threatened action, proceeding or claim related
to the Servicer's willful misfeasance,  bad faith or gross negligence.  Any such
indemnification  shall  not be  payable  from  the  assets  of the  Issuer.  The
provisions  of this  indemnity  shall run directly to and be  enforceable  by an
injured party subject to the limitations  hereof. The provisions of this Section
5.6 shall survive termination of the Agreement or the earlier of the resignation
or removal of the Indenture  Trustee.  To the extent not paid in accordance with
Article VIII of the Trust Agreement,  the Seller shall be secondarily liable for
amounts owing under such Article VIII.

     Section 5.7. Hedging Requirements. Upon prior written notice from the Agent
to the Issuer and the Servicer, the Depositor shall enter into a Hedge Agreement
with a Qualified Hedge  Counterparty and upon execution thereof shall pledge all
of the  Issuer's  right,  title and interest  under such Hedge  Agreement to the
Indenture  Trustee for the benefit of the Owners  pursuant to Section 2.3 hereof
and the Indenture.  Each Hedge  Agreement must satisfy the Required Hedge Amount
and shall otherwise be in form and substance satisfactory to the Agent.

                                      -59-
<PAGE>

     Section 5.8. General Covenants of the Club Trustee.

     Until the date on which the Note  Principal  Balance has been  indefeasibly
paid in full, the Club Trustee hereby covenants that:

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

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

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

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

               (iii)  Ensure  that,  to the extent that the Club Trustee and the
          Servicer  (together with their respective  stockholders or Affiliates)
          jointly  do  business  with  vendors  or  service  providers  or share
          overhead  expenses,  the costs incurred in so doing shall be allocated
          fairly among such  entities,  and each such entity shall bear its fair
          share of such  costs.  To the  extent  that the Club  Trustee  and the
          Servicer  (together with their respective  stockholders or Affiliates)
          do  business  with  vendors  or service  providers  when the goods and
          services  provided are  partially for the benefit 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,  the covenants set forth on Schedule VI hereto or its
          Amended and Restated  Articles of  Incorporation,  as applicable,  and
          observe   all   necessary,   appropriate   and   customary   corporate
          formalities, including, but not limited to,

                                      -60-
<PAGE>

          holding  all  regular  and  special   stockholders',   trustees'   and
          directors'  meetings  appropriate to authorize all trust and corporate
          action, keeping separate and accurate minutes of its meetings, passing
          all resolutions or consents necessary to authorize actions taken or to
          be taken,  and maintaining  accurate and separate  books,  records and
          accounts,  including,  but not  limited to,  payroll and  intercompany
          transaction accounts.

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

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

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

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

                                      -61-
<PAGE>

               (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.

                                END OF ARTICLE V

                                      -62-
<PAGE>

                                   ARTICLE VI

                                     DEFAULT

     Section 6.1. Servicer Termination Events.

          (a) If any one of the following events ("Servicer Termination Events")
     shall occur and be continuing:

               (i) The  failure by the  Servicer  to make any payment or deposit
          required  to be made by the  Servicer  hereunder,  under the  Lock-Box
          Agreement or any other Operative  Document and the continuance of such
          failure for a period of two (2)  Business  Day after the date on which
          such payment or deposit was due and not made; or

               (ii) The failure by the Servicer  duly to observe or perform,  in
          any material respect,  any other covenants,  obligations or agreements
          of the Servicer (except those not applicable to Backup Servicer if its
          becomes  Servicer  hereunder)  as set forth in this  Agreement,  which
          failure  continues  unremedied for a period of 30 days, after the date
          on which  notice of such  failure is  delivered to the Servicer or the
          Servicer otherwise has actual knowledge of such fact; or

               (iii) Any  assignment  by the  Servicer  of its  duties or rights
          hereunder,  under  the  Lock-Box  Agreement,  or any  other  Operative
          Document, except as specifically permitted hereunder or thereunder, or
          any attempt to make such an assignment; or

               (iv)  The  entry  against  the  Servicer  or  the  Seller  (if an
          Affiliate  of the  Servicer) of a decree or order by a court or agency
          or supervisory  authority having  jurisdiction in the premises for the
          appointment of a trustee,  conservator,  receiver or liquidator in any
          insolvency,  conservatorship,   receivership,  readjustment  of  debt,
          marshalling of assets and liabilities or similar  proceedings,  or for
          the winding up or  liquidation  of its affairs and the failure of such
          decree or order to be discharged or stayed for 60 days; or

               (v) The Servicer or the Seller (if an Affiliate of the  Servicer)
          shall voluntarily go into liquidation, consent to the appointment of a
          conservator  or  receiver  or  liquidator  or  similar  person  in any
          insolvency,   readjustment   of  debt,   marshalling   of  assets  and
          liabilities  or similar  proceedings of or relating to the Servicer or
          the  Seller  or of or  relating  to  all or  substantially  all of its
          property,  or the  Servicer  or the Seller  shall admit in writing its
          inability  to pay its  debts  generally  as they  become  due,  file a
          petition  to  take   advantage  of  any   applicable   insolvency   or
          reorganization  statute,  make an  assignment  for the  benefit of its
          creditors or voluntarily suspend payment of its obligations; or

               (vi) So long as the Seller is the  Servicer,  any  failure of the
          Seller to repurchase any Receivable as required by Section 2.4; or

                                      -63-
<PAGE>

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

               (viii) Either of the Servicer or the Depositor shall  consolidate
          or merge with or into any other Person other than as  contemplated  in
          Section 5.2; or

               (ix) Any failure by the Servicer to deliver the reports described
          in  Article  IV of this  Agreement  which  remains  uncured  for three
          Business  Days  after  the  date  on  which  such  failure  commences;
          provided,  however that the period within which Servicer shall deliver
          such reports shall be extended to such longer period as is appropriate
          in the event of a Force Majeure  Delay;  provided  further,  that such
          longer period shall not exceed seven (7) Business Days; or

               (x) Any  default  of a payment  obligation  under any other  loan
          facility,  debt instrument or any similar financing  arrangement (such
          facility,  instrument or financing  arrangement to be an obligation of
          $5,000,000  or  greater) of the  Servicer  or any "event of  default",
          "early  amortization  event" or  similar  event  under any  indenture,
          facility or  agreement  to which the Servicer is a party and the lapse
          of all relevant grace periods  thereunder if the effect of the default
          is to cause, or permit the holders of such  obligation to cause,  such
          loan facility, debt instrument or any similar financing arrangement to
          become due and payable; or

               (xi) There shall have occurred any material adverse change in the
          operations  of the Servicer  since March 31, 2001,  or any other event
          shall have occurred which materially affects the Servicer's ability to
          either collect the Receivables or to perform under this Agreement; or

               (xii) A default or breach shall occur under any other  agreement,
          document or  instrument  to which the  Servicer is a party or by which
          the  Servicer or its  property  is bound that is not cured  within any
          applicable  grace  period  therefor,  and such  default  or breach (i)
          involves  the failure to make any  payment  when due in respect of any
          Indebtedness  of the  Servicer in excess of five  percent  (5%) of the
          Servicer's  Tangible Net Worth, or (ii) causes,  or permits any holder
          of such Indebtedness or a trustee or agent to cause, Indebtedness or a
          portion  thereof  in excess  of five  percent  (5%) of the  Servicer's
          Tangible Net Worth to become due prior to its stated maturity or prior
          to its  regularly  scheduled  dates of payment,  regardless of whether
          such default is waived,  or such right is  exercised,  by such holder,
          trustee or agent; or

               (xiii) the Servicer  (excluding Backup Servicer if it becomes the
          Servicer) ceases to own at least 100% of the Depositor; or

                                      -64-
<PAGE>

               (xiv) Any failure by the Servicer to meet the financial covenants
          contained in Section 4.21; or

               (xv) The Agent  shall not have  delivered  a  Servicer  Extension
          Notice pursuant to Section 4.23.

          (b)  then,  and in each and every  such  case,  so long as a  Servicer
     Termination  Event shall not have been remedied within the applicable grace
     period,  the  Indenture  Trustee  shall,  at the  direction of the Agent on
     behalf of the Majority Noteholders,  by notice then given in writing to the
     Servicer,  terminate all of the rights and  obligations  of the Servicer as
     servicer under this  Agreement.  Any such notice to the Servicer shall also
     be given to the Seller,  the Issuer, the Depositor and the Backup Servicer.
     On or after  the  receipt  by the  Servicer  of such  written  notice,  all
     authority  and power of the  Servicer  under this  Agreement,  whether with
     respect to the Notes or the Receivables or otherwise,  shall pass to and be
     vested in the Backup  Servicer  pursuant  to and under this  Section;  and,
     without limitation,  the Backup Servicer is hereby authorized and empowered
     to execute and deliver,  on behalf of the Servicer,  as attorney-in-fact or
     otherwise,  any and  all  documents  and  other  instruments,  and to do or
     accomplish all other acts or things  necessary or appropriate to effect the
     purposes of such notice of  termination,  whether to complete  the transfer
     and endorsement of each Receivable and related documents or otherwise.  The
     Servicer  agrees to cooperate  with the Backup  Servicer in  effecting  the
     termination of the  responsibilities  and rights of the Servicer hereunder,
     including,  without limitation, the transfer to the Backup Servicer for the
     administration  by it of all cash amounts that shall at the time be held by
     the Servicer and to be  deposited by it in the Note  Account,  or that have
     been  deposited  by the  Servicer  in the  Lock-Box  Account or  thereafter
     received by the Servicer with respect to the  Receivables.  All  reasonable
     costs and expenses (including  attorneys' fees) incurred in connection with
     transferring  the  Receivables  Documents  to the  successor  servicer  and
     amending this Agreement to reflect such succession as servicer  pursuant to
     this  Section  shall be paid by the  Servicer  (or if the  Servicer  is the
     Backup  Servicer,  the initial  Servicer) upon  presentation  of reasonable
     documentation of such costs and expenses.

     Section 6.2. Trustee to Act; Appointment of Successor.

          (a)  On  and  after  the  time  the  Servicer  receives  a  notice  of
     termination  pursuant to Section 6.1 or 5.4, the Backup  Servicer  shall be
     the  successor  in all respects to the Servicer in its capacity as servicer
     under this Agreement and the  transactions set forth or provided for herein
     and shall be subject to all the  responsibilities,  duties and  liabilities
     relating thereto placed on the Servicer by the terms and provisions  hereof
     (except those not applicable to the Backup  Servicer if the Backup Servicer
     becomes the Servicer  hereunder)  arising on and after its  succession.  As
     compensation  therefor,  the  Backup  Servicer  shall be  entitled  to such
     compensation as Servicer as is provided for in Schedule V hereof "Servicing
     Fee" and the exhibits  thereto.  Notwithstanding  the above,  if the Backup
     Servicer is legally  unable so to act, the Indenture  Trustee shall appoint
     or petition a court of competent  jurisdiction to appoint,  any established
     housing  and  home  finance  institution,  bank or other  mortgage  loan or
     contract  servicer  having a net worth of not less than  $50,000,000 as the
     successor to the Servicer hereunder in the assumption of all or any part of
     the responsibilities,  duties or liabilities of the Servicer hereunder.  In
     the event  that  Concord  Servicing  Corporation,  as Backup  Servicer,  is
     legally  unable to act as Servicer  under this Agreement and another entity
     is appointed as successor  servicer under this Section,  Concord  Servicing
     Corporation shall have no further

                                      -65-
<PAGE>

     obligation to perform the  obligations of Servicer or Backup Servicer under
     this  Agreement.  Pending  appointment  of  a  successor  to  the  Servicer
     hereunder,  unless the Backup Servicer is prohibited by law from so acting,
     the Backup Servicer shall act in such capacity as hereinabove  provided. In
     connection with such  appointment  and  assumption,  the successor shall be
     entitled  to receive  compensation  out of payments  on  Receivables  in an
     amount equal to the  compensation  which the Servicer would  otherwise have
     received  pursuant  to  Section  4.7 (or such  lesser  compensation  as the
     Indenture  Trustee and such successor  shall agree).  The  appointment of a
     successor servicer shall not affect any liability of the Servicer which may
     have arisen under this  Agreement  prior to its  termination as Servicer to
     pay any deductible  under an insurance policy pursuant to Section 4.4 or to
     indemnify  the  Indenture  Trustee  pursuant to Section  5.6, nor shall any
     successor  servicer be liable for any acts or  omissions of the Servicer or
     for any breach by the Servicer of any of its  representations or warranties
     contained herein or in any related  document or agreement.  The Trustee and
     such successor shall take such action,  consistent with this Agreement,  as
     shall be necessary to effectuate any such succession.

          (b) Any successor,  including the Backup Servicer,  to the Servicer as
     servicer  shall  during the term of its  service as  servicer  continue  to
     service and  administer the  Receivables  for the benefit of the Issuer and
     the Indenture Trustee, for the benefit of the Owners.

     Section 6.3. Waiver of Defaults. The Owners of a majority of the Percentage
Interests  of the  Notes  (the  "Majority  Noteholders")  may,  on behalf of all
Owners, waive any events permitting removal of the Servicer as servicer pursuant
to this Article VI,  provided,  however,  that the Majority  Noteholders may not
waive a default in making a required  distribution on a Note without the consent
of the Owner of such Note. Upon any waiver of a past default, such default shall
cease to exist and any Servicer  Termination  Event arising  therefrom  shall be
deemed to have been remedied for every purpose of this Agreement. No such waiver
shall extend to any  subsequent or other default or impair any right  consequent
thereto except to the extent expressly so waived.

     Section 6.4. Notification to Owners. Upon any termination or appointment of
a successor  to the  Servicer  pursuant to this  Article VI or Section  5.4, the
Indenture  Trustee  shall give prompt  written  notice  thereof to the Owners at
their respective addresses appearing in the Register.

     Notwithstanding anything else herein to the contrary, in no event shall the
Indenture  Trustee or the Backup Servicer 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 act as successor  Servicer
under this Agreement and the transactions set forth or provided for herein.

                                END OF ARTICLE VI

                                      -66-
<PAGE>

                                  ARTICLE VII

                                   TERMINATION

     Section 7.1. Termination.  This Agreement will terminate upon notice to the
Indenture  Trustee of the later of (i) the  satisfaction  and  discharge  of the
Indenture  pursuant to Section 4.1 of the Indenture or (ii) the  disposition  of
all funds with respect to the last  Receivable  and the  remittance of all funds
due  hereunder  and the payment of all amounts due and payable to the  Indenture
Trustee, the Custodian, the Owner Trustee and the Issuer.

                               END OF ARTICLE VII

                                      -67-
<PAGE>

                                  ARTICLE VIII

                                  MISCELLANEOUS

     Section  8.1.  Acts of Owners.  Except as otherwise  specifically  provided
herein,  whenever  Owner  action,  consent or approval  is  required  under this
Agreement,  such action,  consent or approval shall be deemed to have been taken
or given on behalf  of, and shall be binding  upon,  all Owners if the  Majority
Noteholders agree to take such action or give such consent or approval.

     Section  8.2.  Recordation  of  Agreement.   To  the  extent  permitted  by
applicable  law,  this  Agreement,  or a memorandum  thereof if permitted  under
applicable law, is subject to recordation in all appropriate  public offices for
real property records in all of the counties or other  comparable  jurisdictions
in which any or all of the Resorts are  situated,  and in any other  appropriate
public  recording  office or elsewhere,  such  recordation to be effected by the
Servicer at the Owners'  expense on direction of the Majority  Noteholders,  but
only  when  accompanied  by an  opinion  of  counsel  to the  effect  that  such
recordation  materially and beneficially  affects the interests of the Owners or
is necessary for the administration or servicing of the Receivables.

     Section  8.3.  Duration of  Agreement.  This  Agreement  shall  continue in
existence and effect until terminated as herein provided.

     Section 8.4.  Successors and Assigns.  All covenants and agreements in this
Agreement by any party hereto shall bind its successors and assigns,  whether so
expressed or not.

     Section 8.5.  Severability.  In case any provision in this  Agreement or in
the Notes shall be invalid, illegal or unenforceable, the validity, legality and
enforceability  of the remaining  provisions shall not in any way be affected or
impaired thereby.

     Section 8.6. Governing Law; Submission to Jurisdiction.

          (a) This Agreement and each Note shall be construed in accordance with
     and governed by the laws of the State of New York  applicable to agreements
     made and to be performed therein.

          (b) The parties hereto hereby  irrevocably  submit to the jurisdiction
     of the United States  District Court for the Southern  District of New York
     and any court in the State of New York  located  in the City and  County of
     New York, and any appellate court from any thereof,  in any action, suit or
     proceeding  brought  against it or in connection with this Agreement or any
     of the related documents or the transactions  contemplated hereunder or for
     recognition or  enforcement of any judgment,  and the parties hereto hereby
     irrevocably  and  unconditionally  agree  that all claims in respect of any
     such action or proceeding may be heard or determined in such New York State
     court or, to the  extent  permitted  by law,  in such  federal  court.  The
     parties  hereto  agree that a final  judgment in any such  action,  suit or
     proceeding  shall be conclusive and may be enforced in other  jurisdictions
     by suit on the  judgment  or in any other  manner  provided  by law. To the
     extent  permitted by  applicable  law, the parties  hereto hereby waive and
     agree not to assert by way of motion, as a defense or otherwise in any such
     suit, action or proceeding, any

                                      -68-
<PAGE>

     claim that it is not personally subject to the jurisdiction of such courts,
     that the suit,  action or proceeding is brought in an  inconvenient  forum,
     that the venue of the suit,  action or  proceeding  is improper or that the
     related  documents or the subject matter thereof may not be litigated in or
     by such courts.

          (c)  Nothing  contained  in this  Agreement  shall limit or affect the
     right of the (i)  Depositor,  the  Issuer,  the Seller or the  Servicer  or
     third-party  beneficiary  hereunder,  as the  case may be,  to start  legal
     proceedings  relating to any of the Receivables  against any Obligor in the
     courts of any jurisdiction, or (ii) Backup Servicer in such capacity, or as
     successor Servicer, to sue for accrued but unpaid fees.

     Section 8.7. Counterparts. This instrument 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  8.8.  Amendment.   The  Indenture  Trustee,  the  Custodian,   the
Depositor,  the Issuer,  the Seller and the  Servicer,  may at any time and from
time to time,  with the  prior  written  consent  of the  Agent on behalf of the
Majority  Noteholders,  amend this  Agreement,  and the Indenture  Trustee shall
consent to the  amendment  for the  purposes of (i) curing any  ambiguity,  (ii)
correcting  or  supplementing   any  provisions  of  this  Agreement  which  are
inconsistent with any other provisions of this Agreement or adding provisions to
this Agreement which are not inconsistent with the provisions of this Agreement,
or (iii)  adding any other  provisions  with  respect  to  matters or  questions
arising under this Agreement.  Notwithstanding anything to the contrary, no such
amendment  shall (A) change in any manner the amount of, or delay the timing of,
payments  which are required to be  distributed to any Owner without the consent
of the Owner of such Note or (B) change the  percentages of Percentage  Interest
which are required to consent to any such amendments, without the consent of the
Owners of all Notes then outstanding.

     Prior to the  execution of any amendment to this  Agreement,  the Indenture
Trustee and the Backup  Servicer  shall be entitled to receive and  conclusively
rely upon an Opinion of Counsel  stating that the execution of such amendment is
authorized or permitted by this Agreement and that all  conditions  precedent to
such execution and delivery have been satisfied.  The Indenture  Trustee and the
Backup Servicer may, but shall not be obligated to enter into any such amendment
which affects the  Indenture  Trustee's  and the Backup  Servicer's  own rights,
duties or immunities under this Agreement.

     Section 8.9. Specification of Certain Tax Matters. Each Owner shall provide
the Indenture  Trustee with a completed and executed Form W-8IMY,  W-9,  W-8EXP,
W-8ECI or W-8BEN (or any successor  form), as applicable,  prior to purchasing a
Note. The Indenture  Trustee shall comply with all requirements of the Code, and
applicable  state  and local  law,  with  respect  to the  withholding  from any
distributions  made to any Owner of any  applicable  withholding  taxes  imposed
thereon and with respect to any applicable reporting  requirements in connection
therewith.

     Section 8.10.  Notices.  Except as provided below, all  communications  and
notices provided for hereunder shall be in writing  (including bank wire, telex,
telecopy or electronic  facsimile  transmission or similar writing) and shall be
given to the other party at its address or telecopy number set forth below or at
such other address or telecopy  number as such party may

                                      -69-
<PAGE>

hereafter specify for the purpose of notice to such party. All notices hereunder
shall be given as follows,  until any superseding  instructions are given to all
other Persons listed below:

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

     The Issuer:                       BXG Receivables Note Trust
                                       2001-A
                                       c/o Wilmington Trust Company
                                       Rodney Square North
                                       1100 N. Market Street
                                       Wilmington, DE 19890
                                       Attention: Corporate Trust
                                       Administration/
                                          BXG Receivables Note Trust
                                       2001-A
                                       Telecopier No.:  (302) 651-8882

     The Depositor:           Bluegreen Receivables Finance
                              Corporation V
                              4960 Conference Way North, Suite 100
                              Boca Raton, Florida 33431
                              Attn: John Chiste
                              Telecopy: (561) 912-8123

     Club Trustee:            4950 Blue Lake Drive
                              Suite 400
                              Boca Raton, Florida 33431
                              Attention: Randi S. Tompkins
                              Telecopier No.: (561) 912-7999

     The Servicer
     and Seller:              Bluegreen Corporation
                              4960 Conference Way North, Suite 100
                              Boca Raton, Florida 33431
                              Attn: John Chiste
                              Telecopy: (561) 912-8123

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

     Section 8.11.  Benefits of Agreement.  Nothing in this  Agreement or in the
Notes,  expressed or implied,  shall give to any Person,  other than the Owners,
the Owner Trustee and the

                                      -70-
<PAGE>

parties  hereto  and their  successors  hereunder,  any  benefit or any legal or
equitable right, remedy or claim under this Agreement.

     Section  8.12.  Legal  Holidays.  In any case where the date of any Payment
Date,  any other date on which any  distribution  to any Owner is proposed to be
paid,  or any  date on  which a  notice  is  required  to be sent to any  Person
pursuant  to the terms of this  Agreement  shall  not be a  Business  Day,  then
(notwithstanding  any other provision of the Notes or this Agreement) payment or
mailing  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 or mailed on the nominal
date of any  such  Payment  Date,  or such  other  date for the  payment  of any
distribution to any Owner or the mailing of such notice, as the case may be, and
no interest  shall accrue for the period from and after any such  nominal  date,
provided such payment is made in full on such next succeeding Business Day.

     Section  8.13.  No  Petition.  The parties  hereto,  by entering  into this
Agreement,  and each Owner, by accepting a Note,  hereby covenant and agree that
they will not institute  against the Depositor,  the Issuer or the Club Trustee,
or join in any institution against the Depositor, the Issuer or the Club Trustee
of, any  bankruptcy,  reorganization,  arrangement,  insolvency  or  liquidation
proceedings,  or other  proceedings  under any  United  States  federal or state
bankruptcy or similar law in  connection  with any  obligations  relating to the
Notes, this Agreement or any of the Operative Documents for one year and one day
after the payment in full of the Notes.

     Section  8.14.  Limitation of Liability of Owner  Trustee.  Notwithstanding
anything contained herein or in any other Operative Document to the contrary, it
is expressly understood and agreed by the parties hereto that (a) this Agreement
is executed and delivered by  Wilmington  Trust  Company,  not  individually  or
personally  but  solely as Owner  Trustee,  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 Agreement or any other related documents.

                               END OF ARTICLE VIII

                                      -71-
<PAGE>

     IN WITNESS WHEREOF,  the Issuer,  the Depositor,  the Seller, the Servicer,
the Backup Servicer,  the Club Trustee,  the Custodian and the Indenture Trustee
have caused this  Agreement  to be duly  executed by their  respective  officers
thereunto duly authorized, all as of the day and year first above written.

                                       BXG Receivables Note Trust
                                       2001-A

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

                                       By:    /S/ PATRICIA A. EVANS
                                              ----------------------------------
                                       Name:  Patricia A. Evans
                                              ----------------------------------
                                       Title: Senior Financial Services Officer
                                              ----------------------------------

                                       BLUEGREEN RECEIVABLES FINANCE
                                       CORPORATION V,
                                            as Depositor

                                       By:    /S/ JOHN F. CHISTE
                                              ----------------------------------
                                       Name:  John F. Chiste
                                              ----------------------------------
                                       Title: Senior Vice President, Treasurer
                                              ----------------------------------
                                              and Chief Financial Officer
                                              ----------------------------------

                                       BLUEGREEN CORPORATION,
                                       as Seller and Servicer

                                       By:    /S/ JOHN F. CHISTE
                                              ----------------------------------
                                       Name:  John F. Chiste
                                              ----------------------------------
                                       Title: Senior Vice President, Treasurer
                                              ----------------------------------
                                              and Chief Financial Officer
                                              ----------------------------------

                                      -S-1-
<PAGE>

                                       VACATION TRUST, INC., for
                                       itself and as Club Trustee
                                       under the Club Trust Agreement

                                       By:    /S/ SHARI A. BASYE
                                              ----------------------------------
                                       Name:  Shari A. Basye
                                              ----------------------------------
                                       Title: Secretary and Treasurer
                                              ----------------------------------

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

                                       By:    /S/ TAMARA SCHULTZ-FUGH
                                              ----------------------------------
                                       Name:  Tamara Schultz-Fugh
                                              ----------------------------------
                                       Title: Vice President
                                              ----------------------------------

                                       CONCORD SERVICING CORPORATION,
                                        as Backup Servicer

                                       By:    /S/ FRED PINK
                                              ----------------------------------
                                       Name:  Fred Pink
                                              ----------------------------------
                                       Title: Vice President
                                              ----------------------------------

                                     -S-2-

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