Document:

Exhibit 10.194

MASTER ACQUISITION, DEVELOPMENT AND
CONSTRUCTION FACILITY

LOAN AND SECURITY AGREEMENT

by and among

TEXTRON FINANCIAL CORPORATION,

BLUEGREEN VACATIONS UNLIMITED, INC., and

BLUEGREEN CORPORATION

As of April 9, 2008

TABLE OF
CONTENTS

	
 

	
 

	
 

	
 

	
SECTION 1.

	
DEFINITIONS AND CONSTRUCTION

	
1

	
1.1.

	
 

	
Definitions

	
1

	
1.2.

	
 

	
Construction

	
16

	
1.3.

	
 

	
Schedules
 and Exhibits

	
16

	
1.4.

	
 

	
Accounting
 Principles

	
16

	
 

	
 

	
 

	
 

	
SECTION 2.

	
THE MASTER FACILITY

	
16

	
2.1.

	
 

	
Purposes

	
16

	
2.2.

	
 

	
Qualified
 Sub-Loans

	
16

	
2.3.

	
 

	
Advances

	
17

	
2.4.

	
 

	
Requests for
 Advance under Sub-Loan

	
18

	
2.5.

	
 

	
Amounts in
 Excess of Maximum Master Facility Amount

	
18

	
2.6.

	
 

	
Use of
 Proceeds

	
18

	
2.7.

	
 

	
Closing

	
18

	
2.8.

	
 

	
Maximum TFC
 Relationship Amount

	
18

	
 

	
 

	
 

	
 

	
SECTION 3.

	
SUB-LOAN DOCUMENTS AND SUB-LOAN ACCOUNT

	
19

	
3.1.

	
 

	
Sub-Loan
 Documents

	
19

	
3.2.

	
 

	
Sub-Loan
 Account

	
19

	
 

	
 

	
 

	
 

	
SECTION 4.

	
INTEREST RATE

	
19

	
4.1.

	
 

	
Interest
 Rate

	
19

	
4.2.

	
 

	
Default Rate

	
20

	
4.3.

	
 

	
Calculation
 of Interest

	
20

	
4.4.

	
 

	
Limitation
 of Interest to Maximum Lawful Rate

	
20

	
 

	
 

	
 

	
 

	
SECTION 5.

	
FEES

	
20

	
5.1.

	
 

	
Sub-Loan
 Funding Fee

	
20

	
5.2.

	
 

	
Late Charge

	
20

	
5.3.

	
 

	
General

	
21

	
 

	
 

	
 

	
 

	
SECTION 6.

	
PAYMENTS

	
21

	
6.1.

	
 

	
General

	
21

	
6.2.

	
 

	
Reinstatement
 of Obligations

	
22

	
6.3.

	
 

	
Prepayment

	
22

	
6.4.

	
 

	
Indemnity

	
23

	
 

	
 

	
 

	
 

	
SECTION 7.

	
SECURITY; GUARANTY

	
23

	
7.1.

	
 

	
Security

	
23

	
7.2.

	
 

	
Cross-Default
 and Cross-Collateral

	
26

	
7.3.

	
 

	
Sub-Loan
 Guaranty

	
27

	
7.4.

	
 

	
Additional
 Documents and Future Actions

	
27

	
7.5.

	
 

	
Location of
 Sub-Loan Collateral

	
27

	
7.6.

	
 

	
Insurance
 and Protection of Collateral

	
27

	
 

	
 

	
 

	
 

	
SECTION 8.

	
CONSTRUCTION ADVANCE PROCEDURES

	
27

	
8.1.

	
 

	
General

	
27

	
8.2.

	
 

	
Disbursement
 Agent

	
27

	
8.3.

	
 

	
Payment of
 Bills

	
28

i

	
 

	
 

	
 

	
 

	
8.4.

	
 

	
Construction
 Sub-Loan Portion

	
28

	
8.5.

	
 

	
Retainage;
 Conditions Precedent to Final Disbursements for Each Sub-Loan

	
28

	
8.6.

	
 

	
Deposit of
 Funds Advanced/Advances to Disbursement Agent, Architect, Contractor and
 Subcontractors

	
30

	
8.7.

	
 

	
Advances Do
 Not Constitute a Waiver

	
30

	
 

	
 

	
 

	
 

	
SECTION 9.

	
REPRESENTATIONS AND WARRANTIES

	
30

	
9.1.

	
 

	
Organization;
 Power

	
31

	
9.2.

	
 

	
Authorization;
 No Legal Restrictions; No Breach of Other Agreements

	
32

	
9.3.

	
 

	
Approvals;
 Licenses, Etc.

	
32

	
9.4.

	
 

	
Enforceability

	
32

	
9.5.

	
 

	
Title

	
32

	
9.6.

	
 

	
Liens

	
32

	
9.7.

	
 

	
Financial
 Statements and Financial Condition

	
33

	
9.8.

	
 

	
Taxes

	
33

	
9.9.

	
 

	
Subsidiaries;
 Affiliates and Capital Structure

	
34

	
9.10.

	
 

	
Litigation
 Proceedings, Etc.

	
34

	
9.11.

	
 

	
Licenses;
 Permits; Etc.

	
34

	
9.12.

	
 

	
Environmental
 Matters

	
35

	
9.13.

	
 

	
Full
 Disclosure

	
35

	
9.14.

	
 

	
Use of
 Proceeds/Margin Stock

	
35

	
9.15.

	
 

	
No Defaults

	
35

	
9.16.

	
 

	
Compliance
 with Law

	
36

	
9.17.

	
 

	
Restrictions
 of Borrower or Guarantor

	
36

	
9.18.

	
 

	
Broker’s
 Fees

	
36

	
9.19.

	
 

	
Deferred
 Compensation Plans

	
37

	
9.20.

	
 

	
Labor
 Relations

	
37

	
9.21.

	
 

	
Tax
 Identification Numbers

	
37

	
9.22.

	
 

	
Insurance

	
37

	
9.23.

	
 

	
Names and
 Addresses

	
37

	
9.24.

	
 

	
Solvency

	
37

	
9.25.

	
 

	
Common
 Enterprise

	
38

	
9.26.

	
 

	
Restrictive
 Contracts

	
38

	
9.27.

	
 

	
Completeness
 of Representations

	
38

	
9.28.

	
 

	
No Violation
 of Right of First Refusal

	
38

	
 

	
 

	
 

	
 

	
SECTION 10.

	
REPRESENTATIONS, WARRANTIES AND COVENANTS WITH RESPECT TO THE
 APPLICABLE RESORT

	
39

	
10.1.

	
 

	
Access and
 Utilities

	
39

	
10.2.

	
 

	
Compliance

	
39

	
10.3.

	
 

	
Applicable
 Declaration

	
39

	
10.4.

	
 

	
Zoning Laws,
 Building Codes, Etc.

	
39

	
10.5.

	
 

	
Units Ready
 for Use

	
40

	
10.6.

	
 

	
Sub-Loan
 Collateral Taxes and Fees

	
40

	
10.7.

	
 

	
No Defaults

	
40

	
10.8.

	
 

	
Timeshare
 Plan

	
40

ii

	
 

	
 

	
 

	
 

	
10.9.

	
 

	
Sale of
 Timeshare Interests

	
41

	
10.10.

	
 

	
Brokers

	
41

	
10.11.

	
 

	
Tangible
 Property

	
41

	
10.12.

	
 

	
Condition of
 Applicable Resort

	
41

	
10.13.

	
 

	
Assessments
 and Developer Subsidy

	
41

	
10.14.

	
 

	
Amenities

	
42

	
10.15.

	
 

	
Permits and
 Licenses

	
42

	
10.16.

	
 

	
Wetlands

	
42

	
10.17.

	
 

	
Mechanic’s
 Lien Claims

	
42

	
10.18.

	
 

	
Applicable
 Resort Contracts

	
42

	
10.19.

	
 

	
Intentionally
 Omitted

	
42

	
10.20.

	
 

	
Site Plan
 Approval

	
42

	
10.21.

	
 

	
Club Plan

	
42

	
10.22.

	
 

	
Reservation
 System

	
43

	
10.23.

	
 

	
One to One
 Ratio Compliance

	
43

	
10.24.

	
 

	
Club
 Documents

	
43

	
 

	
 

	
 

	
 

	
SECTION 11.

	
CONSTRUCTION REPRESENTATIONS, WARRANTIES AND COVENANTS

	
43

	
11.1.

	
 

	
Construction

	
43

	
11.2.

	
 

	
Sub-Loan
 Cost Certificate

	
43

	
11.3.

	
 

	
Sub-Loan
 Construction Contract

	
44

	
11.4.

	
 

	
Sub-Loan
 Architect’s Contract

	
46

	
11.5.

	
 

	
Sub-Loan
 Subcontracts

	
46

	
11.6.

	
 

	
Specifications

	
47

	
11.7.

	
 

	
Permits

	
47

	
11.8.

	
 

	
Commencement
 of Construction

	
47

	
11.9.

	
 

	
Zoning and
 Land Use

	
48

	
11.10.

	
 

	
Additional
 Equity

	
48

	
11.11.

	
 

	
No
 Developer’s Fee

	
48

	
11.12.

	
 

	
Right of
 Lender to Inspect Applicable Resort and Review Specifications

	
48

	
11.13.

	
 

	
Correction
 of Defects

	
49

	
11.14.

	
 

	
Notification
 of Mechanics Lien Claims

	
49

	
11.15.

	
 

	
Construction
 Tests

	
49

	
11.16.

	
 

	
Substantial
 Completion

	
49

	
11.17.

	
 

	
Intentionally
 Omitted

	
50

	
11.18.

	
 

	
Notice of
 Completion

	
50

	
11.19.

	
 

	
Compliance
 with Inspector’s Standards

	
50

	
11.20.

	
 

	
Bonding Requirements

	
50

	
11.21.

	
 

	
Force
 Majeure

	
50

	
11.22.

	
 

	
Lien
 Waivers

	
51

	
11.23.

	
 

	
Specifications

	
51

	
 

	
 

	
 

	
 

	
SECTION 12.

	
GENERAL AFFIRMATIVE COVENANTS

	
51

	
12.1.

	
 

	
Payment and Performance of Obligations

	
51

	
12.2.

	
 

	
Business Office

	
51

	
12.3.

	
 

	
Maintenance of Existence, Qualification and Assets

	
52

iii

	
 

	
 

	
 

	
 

	
12.4.

	
 

	
Consolidation and Merger

	
52

	
12.5.

	
 

	
Maintenance of Insurance

	
52

	
12.6.

	
 

	
Maintenance of Security

	
52

	
12.7.

	
 

	
Payment of Taxes and Claims

	
52

	
12.8.

	
 

	
Inspections

	
53

	
12.9.

	
 

	
Records

	
53

	
12.10.

	
 

	
Management

	
54

	
12.11.

	
 

	
Maintenance

	
54

	
12.12.

	
 

	
Local Legal Compliance

	
54

	
12.13.

	
 

	
Registration Compliance

	
54

	
12.14.

	
 

	
Other Compliance

	
54

	
12.15.

	
 

	
Further Assurances

	
55

	
12.16.

	
 

	
Maintenance and Amenities

	
55

	
12.17.

	
 

	
Sub-Loan Costs

	
55

	
12.18.

	
 

	
Indemnification of Lender

	
55

	
12.19.

	
 

	
Use of Borrower’s Names

	
57

	
12.20.

	
 

	
Right to
 Provide Future Financing

	
57

	
12.21.

	
 

	
Inspector

	
57

	
12.22.

	
 

	
Sales and Marketing

	
57

	
12.23.

	
 

	
Applicable Resort Contracts

	
58

	
12.24.

	
 

	
Consents

	
58

	
12.25.

	
 

	
Engineering Survey

	
58

	
12.26.

	
 

	
Agreements Related to the Acquisition of the Acquired Assets

	
58

	
12.27.

	
 

	
Exchange
 Company

	
58

	
12.28.

	
 

	
One to One
 Ratio Compliance

	
59

	
 

	
 

	
 

	
 

	
SECTION 13.

	
REPORTING REQUIREMENTS

	
59

	
13.1.

	
 

	
Intentionally
 Omitted

	
59

	
13.2.

	
 

	
Quarterly Financial Reports

	
59

	
13.3.

	
 

	
Annual Financial Reports of Guarantor

	
59

	
13.4.

	
 

	
Officer’s Certificate

	
59

	
13.5.

	
 

	
Audit Reports

	
60

	
13.6.

	
 

	
Inventory
 Report and Sales Reports

	
60

	
13.7.

	
 

	
Applicable
 Association Reports

	
60

	
13.8.

	
 

	
Notice of Default or Event of Default

	
60

	
13.9.

	
 

	
Notice of Claimed Default

	
60

	
13.10.

	
 

	
Material Adverse Developments

	
60

	
13.11.

	
 

	
Other Information

	
61

	
 

	
 

	
 

	
 

	
SECTION 14.

	
NEGATIVE COVENANTS

	
61

	
14.1.

	
 

	
Organization

	
61

	
14.2.

	
 

	
Applicable Resort Contracts

	
61

	
14.3.

	
 

	
Limitation on Other Debt/Further Encumbrances

	
61

	
14.4.

	
 

	
Sale of
 Assets

	
61

	
14.5.

	
 

	
Amendment of
 Applicable Declaration

	
61

	
14.6.

	
 

	
Ownership

	
61

	
14.7.

	
 

	
Other Liens
 or Assignments

	
62

iv

	
 

	
 

	
 

	
 

	
14.8.

	
 

	
Merger, Etc.

	
62

	
14.9.

	
 

	
Use of Lender’s Name

	
62

	
14.10.

	
 

	
Transactions with Affiliates

	
62

	
14.11.

	
 

	
Name or Address Change

	
62

	
14.12.

	
 

	
Distributions

	
62

	
14.13.

	
 

	
Restrictions
 on Transfers

	
63

	
14.14.

	
 

	
Restrictive
 Covenants

	
63

	
14.15.

	
 

	
Timeshare
 Regime

	
63

	
14.16.

	
 

	
Chief
 Executive Office

	
63

	
14.17.

	
 

	
Marketing/Sales

	
63

	
14.18.

	
 

	
Amenities

	
63

	
14.19.

	
 

	
Changes in Accounting

	
64

	
14.20.

	
 

	
Club Reservation System

	
64

	
 

	
 

	
 

	
 

	
SECTION 15.

	
AFFILIATE INDEBTEDNESS

	
64

	
 

	
 

	
 

	
SECTION 16.

	
FINANCIAL COVENANTS

	
64

	
16.1.

	
 

	
Minimum
 Tangible Net Worth

	
64

	
16.2.

	
 

	
Minimum Debt
 to Tangible Net Worth Ratio

	
65

	
 

	
 

	
 

	
 

	
SECTION 17.

	
CONDITIONS OF AND DOCUMENTS TO BE DELIVERED ON OR BEFORE THE SUB-LOAN
 CLOSING DATE

	
65

	
17.1.

	
 

	
Sub-Agreement
 and Sub-Loan Documents

	
65

	
17.2.

	
 

	
Opinions of
 Counsel

	
65

	
17.3.

	
 

	
Applicable
 Timeshare Documents

	
65

	
17.4.

	
 

	
Applicable
 Association Documents

	
66

	
17.5.

	
 

	
Obligors’
 Documents

	
66

	
17.6.

	
 

	
Good Standing
 Certificates

	
66

	
17.7.

	
 

	
Insurance

	
66

	
17.8.

	
 

	
Flood
 Insurance

	
66

	
17.9.

	
 

	
Authorizing
 Resolutions

	
66

	
17.10.

	
 

	
Applicable
 UCC-1 Financing Statements

	
66

	
17.11.

	
 

	
UCC-1 Search
 Report

	
66

	
17.12.

	
 

	
Releases

	
67

	
17.13.

	
 

	
Closing
 Certificates

	
67

	
17.14.

	
 

	
Compliance

	
67

	
17.15.

	
 

	
Borrower’s
 Certificate of Indemnity

	
67

	
17.16.

	
 

	
Mortgagee
 Title Insurance Commitment and Title Policy

	
67

	
17.17.

	
 

	
Taxes and
 Assessments

	
68

	
17.18.

	
 

	
Preclosing
 Inspections

	
68

	
17.19.

	
 

	
Expenses

	
68

	
17.20.

	
 

	
Acquisition
 Documents

	
68

	
17.21.

	
 

	
Closing on
 Acquisition Agreement

	
68

	
17.22.

	
 

	
Permits and
 Approvals

	
68

	
17.23.

	
 

	
Applicable
 Resort Contracts

	
69

	
17.24.

	
 

	
Compliance
 with Planning and Zoning Stipulations

	
69

	
17.25.

	
 

	
Applicable
 Resort Broker

	
69

	
17.26.

	
 

	
Escrow
 Agreements

	
69

v

	
 

	
 

	
 

	
 

	
17.27.

	
 

	
Credit
 References

	
69

	
17.28.

	
 

	
Acquisition
 and/or Construction Equity

	
69

	
17.29.

	
 

	
Post-Closing
 Requirements

	
69

	
17.30.

	
 

	
Other

	
69

	
 

	
 

	
 

	
 

	
SECTION 18.

	
CONDITIONS TO LENDER’S OBLIGATION TO MAKE
 CONSTRUCTION ADVANCES IN
 CONNECTION WITH ANY SUB-LOAN

	
70

	
18.1.

	
 

	
Documents

	
70

	
18.2.

	
 

	
Representations
 and Warranties

	
70

	
18.3.

	
 

	
Covenants

	
70

	
18.4.

	
 

	
No Default

	
70

	
18.5.

	
 

	
Request for
 Sub-Loan Advance under Construction Component of Sub-Loan

	
70

	
18.6.

	
 

	
Soft Costs

	
71

	
18.7.

	
 

	
Other
 Agreements

	
71

	
18.8.

	
 

	
Construction
 Documents

	
72

	
18.9.

	
 

	
Contractor’s
 Insurance

	
72

	
18.10.

	
 

	
Inspector’s
 Plan and Cost Review

	
72

	
18.11.

	
 

	
Inspector’s
 Report

	
72

	
18.12.

	
 

	
Certificates
 of Substantial Completion

	
72

	
18.13.

	
 

	
Compliance

	
72

	
18.14.

	
 

	
Lien
 Waivers, etc.

	
72

	
18.15.

	
 

	
Title Policy
 Endorsements

	
72

	
18.16.

	
 

	
Fees and
 Expenses

	
73

	
18.17.

	
 

	
Permits and
 Approvals

	
73

	
18.18.

	
 

	
Sub-Loan
 Mortgage

	
73

	
18.19.

	
 

	
Completion
 of Work

	
73

	
18.20.

	
 

	
Additional
 Equity

	
73

	
18.21.

	
 

	
Advances Do
 Not Constitute a Waiver

	
73

	
18.22.

	
 

	
No
 Obligation to Fund After Filed Liens

	
73

	
18.23.

	
 

	
Stored Goods

	
74

	
18.24.

	
 

	
Other

	
74

	
 

	
 

	
 

	
 

	
SECTION 19.

	
DEFAULT

	
74

	
19.1.

	
 

	
Sub-Loan Payments

	
74

	
19.2.

	
 

	
Covenant Defaults

	
74

	
19.3.

	
 

	
Warranties or Representations

	
74

	
19.4.

	
 

	
Enforceability of Liens

	
75

	
19.5.

	
 

	
Involuntary Proceedings

	
75

	
19.6.

	
 

	
Proceedings

	
75

	
19.7.

	
 

	
Attachment; Judgment; Tax Liens

	
75

	
19.8.

	
 

	
Intentionally
 Omitted

	
75

	
19.9.

	
 

	
Removal of Sub-Loan Collateral

	
75

	
19.10.

	
 

	
Default of Guarantor

	
75

	
19.11.

	
 

	
Merger or
 Dissolution

	
75

	
19.12.

	
 

	
Default by Borrower or Guarantor Under Other Agreements

	
76

vi

	
 

	
 

	
 

	
 

	
19.13.

	
 

	
Loss of License

	
76

	
19.14.

	
 

	
Issuance of Order

	
76

	
19.15.

	
 

	
Violation of
 Negative Covenants

	
76

	
19.16.

	
 

	
Deficiency

	
76

	
19.17.

	
 

	
Abandonment or Cessation of Construction

	
76

	
19.18.

	
 

	
Lien Against Sub-Loan Collateral

	
77

	
19.19.

	
 

	
Unauthorized Work

	
77

	
19.20.

	
 

	
Breach

	
77

	
19.21.

	
 

	
Criminal Proceedings

	
77

	
19.22.

	
 

	
Bonding
 Requirements

	
77

	
19.23.

	
 

	
Permits

	
77

	
19.24.

	
 

	
Fraud

	
77

	
19.25.

	
 

	
Suspension
 of Sales

	
77

	
19.26.

	
 

	
Insolvency

	
78

	
19.27.

	
 

	
Encroachments
 and Permits

	
78

	
19.28.

	
 

	
Material
 Adverse Change

	
78

	
19.29.

	
 

	
Cessation of
 Business

	
78

	
 

	
 

	
 

	
 

	
SECTION 20.

	
TERMINATION OF OBLIGATION TO ADVANCE/REMEDIES

	
78

	
20.1.

	
 

	
Termination
 of Obligation to Advance

	
78

	
20.2.

	
 

	
Remedies

	
79

	
20.3.

	
 

	
Notice of Sale of Personal Property Sub-Loan Collateral

	
83

	
20.4.

	
 

	
Application of Sub-Loan Collateral; Termination of Agreements

	
84

	
20.5.

	
 

	
Suits to Protect the Mortgaged Property and Sub-Loan Collateral

	
84

	
20.6.

	
 

	
Rights of Lender Regarding Sub-Loan Collateral

	
85

	
20.7.

	
 

	
Waiver of
 Appraisement Valuation, Stay, Extension and Redemption Laws

	
85

	
20.8.

	
 

	
Delegation of Duties and Rights

	
85

	
20.9.

	
 

	
Lender Not in Control

	
86

	
20.10.

	
 

	
Waivers

	
86

	
20.11.

	
 

	
Cumulative Rights

	
87

	
20.12.

	
 

	
Expenditures by Lender

	
87

	
20.13.

	
 

	
Diminution in Value of Sub-Loan Collateral

	
87

	
20.14.

	
 

	
Discontinuance of Proceedings

	
88

	
 

	
 

	
 

	
 

	
SECTION 21.

	
PARTIAL RELEASES; OTHER RELEASES

	
88

	
 

	
 

	
 

	
SECTION 22.

	
CERTAIN RIGHTS OF LENDER

	
89

	
22.1.

	
 

	
Protection of Sub-Loan Collateral

	
89

	
22.2.

	
 

	
Performance by Lender

	
89

	
22.3.

	
 

	
No Liability of Lender

	
89

	
22.4.

	
 

	
Right to Defend Action Affecting Security

	
90

	
22.5.

	
 

	
Indemnities, Sub-Loan Costs and Expenses

	
90

	
22.6.

	
 

	
Lender’s Right of Set-Off

	
90

	
22.7.

	
 

	
No Waiver

	
90

vii

	
 

	
 

	
 

	
 

	
22.8.

	
 

	
Right of
 Lender to Extend Time of Payment, Substitute, Release Security, Etc.

	
90

	
22.9.

	
 

	
Assignment of Lender’s Interest

	
91

	
22.10.

	
 

	
Power of Attorney

	
91

	
22.11.

	
 

	
Relief from Automatic Stay, Etc.

	
91

	
22.12.

	
 

	
Investigations and Inquiries

	
92

	
 

	
 

	
 

	
 

	
SECTION 23.

	
MISCELLANEOUS

	
92

	
23.1.

	
 

	
Notices

	
92

	
23.2.

	
 

	
Term of Agreement

	
93

	
23.3.

	
 

	
Survival

	
93

	
23.4.

	
 

	
Continuation and Investigation

	
93

	
23.5.

	
 

	
Governing
 Law; Consent to Jurisdiction

	
94

	
23.6.

	
 

	
Invalid Provisions

	
94

	
23.7.

	
 

	
Successors and Assigns; Third Party Beneficiaries

	
94

	
23.8.

	
 

	
Amendment

	
95

	
23.9.

	
 

	
Counterparts; Effectiveness; Facsimile

	
95

	
23.10.

	
 

	
Lender Not Fiduciary

	
95

	
23.11.

	
 

	
Total Agreement

	
95

	
23.12.

	
 

	
Consents, Approvals and Discretion

	
96

	
23.13.

	
 

	
Litigation

	
96

	
23.14.

	
 

	
Submissions

	
96

	
23.15.

	
 

	
Incorporation of Exhibits

	
97

	
23.16.

	
 

	
Consent to Advertising and Publicity of Documents

	
97

	
23.17.

	
 

	
Control of Applicable Association

	
97

	
23.18.

	
 

	
Directly or Indirectly

	
97

	
23.19.

	
 

	
Savings
 Clause

	
97

	
23.20.

	
 

	
Reimbursement for Taxes

	
98

	
23.21.

	
 

	
Headings

	
98

	
23.22.

	
 

	
Gender

	
98

	
23.23.

	
 

	
Time of the Essence

	
98

	
23.24.

	
 

	
Conflict

	
98

	
23.25.

	
 

	
Joinder and
 Consent

	
98

viii

LIST OF EXHIBITS

	
 

	
 

	
 

	
EXHIBIT “A”

	
-

	
Form of
 Request For Advance

	
 

	
 

	
 

	
EXHIBIT “B”

	
-

	
Form of
 Officer’s Certificate

	
 

	
 

	
 

	
EXHIBIT “C”

	
-

	
List of
 Sub-Loans

	
 

	
 

	
 

	
EXHIBIT “D”

	
-

	
Form of
 Request for Construction Advance

	
 

	
 

	
 

	
EXHIBIT “E”

	
-

	
Form of
 TFC’s Inspector Sub-Loan Construction Cost Certificate

	
 

	
 

	
 

	
EXHIBIT “F”

	
-

	
Form of
 Sub-Loan Draw Certificate of the General Contractor

ix

LIST OF
SCHEDULES

	
 

	
 

	
 

	
Schedule
 9.10

	
-

	
Litigation

	
 

	
 

	
 

	
Schedule
 9.23

	
-

	
Names and
 Addresses of Borrower

x

MASTER
ACQUISITION, DEVELOPMENT AND CONSTRUCTION FACILITY

LOAN AGREEMENT

           THIS MASTER
ACQUISITION, DEVELOPMENT AND CONSTRUCTION
FACILITY LOAN AND SECURITY AGREEMENT (the “Agreement”) is
made effective as of April 9, 2008 by and among TEXTRON FINANCIAL CORPORATION, a Delaware corporation
(“Lender”),
BLUEGREEN VACATIONS UNLIMITED, INC.,
a Florida corporation (collectively, “Borrower”), and BLUEGREEN CORPORATION, a Massachusetts
corporation (“Guarantor” or “Bluegreen”).

           A.          Borrower,
Lender and Guarantor have entered into a credit facility evidenced by that
certain Acquisition and Construction Loan and Security Agreement dated as of
November 14, 2006 in connection with Odyssey Dells, a timeshare resort located
in Sauk County, Wisconsin (“Odyssey Dells Loan”);

           B.          Borrower,
Lender and Guarantor have entered into a credit facility evidenced by that
certain Construction Loan and Security Agreement dated as of March 23, 2007 in
connection with World Golf Village a timeshare resort located in St. Johns
County, Florida (“World Golf Village Loan”);

           C.          Borrower,
Lender and Guarantor desire to establish a master facility pursuant to when
Lender can advance funds in connection with existing and future Sub-Loans under
the master facility made by Lender to Borrower for acquisition, development
and/or construction purposes in connection with approved timeshare resorts
owned and developed by Borrower (the “Master Facility”);

           D.          Borrower,
Lender and Guarantor agree that both the Odyssey Dells Loan and the World Golf
Village Loan will be included as part of the Master Facility.

           E.          This
Agreement will establish the uniform terms and conditions pursuant to which all
such Sub-Loans shall be made by Borrower to Lender, subject to the terms of any
Sub-Loan Agreement and Sub-Loan Documents.

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

 SECTION 1.   DEFINITIONS AND CONSTRUCTION.

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

                         Acquired
Assets means the assets
acquired by Borrower pursuant to the Acquisition Agreement and Acquisition
Documents.

                     Acquisition
Agreement means that
certain acquisition or purchase and sale agreement between Borrower and the
seller of the Acquired Assets as more particularly described in the Applicable
Sub-Loan Agreement.

                     Acquisition
Component means the
acquisition component (including existing inventory) or portion of any
Sub-Loan.

                     Acquisition
Documents has the meaning
set forth in Section 12.26.

                     Advance means
an advance of the proceeds of any Sub-Loan by Lender to or on behalf of
Borrower in accordance with the terms of this Agreement and any Applicable
Sub-Loan Agreement, and any Sub-Loan Documents, including, without limitation,
any Construction Advance.

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

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

                     Agreement
means this Master
Acquisition, Development and Construction Facility Loan and Security Agreement
(including the exhibits and schedules hereto), as amended, restated, extended
or supplemented from time to time. 

                     Agreement
to Provide Insurance means the
applicable Agreement to Provide Insurance with respect to any Sub-Loan between
Borrower and Lender, as it may be amended, restated, extended or supplemented
from time to time.

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

                     Applicable
Approved Construction
Budget means in connection with each Sub-Loan, the budget
relating to the cost of the Work to be undertaken and completed at a particular
Applicable Phase or Applicable Resort in form and substance

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 acceptable to
Lender, in its sole discretion which shall be attached as an exhibit to any
Sub-Loan Agreement pursuant to which Lender is making a Construction Advance.

                     Applicable
Approved Construction
Schedule means in connection with each Sub-Loan, the schedule
relating to the time frame for completion of the Work at a particular
Applicable Phase or Applicable Resort in form and substance acceptable to
Lender, in its sole discretion which shall be attached as an exhibit to any Sub-Loan
Agreement pursuant to which Lender is making a Construction Advance.

                     Applicable
Association means the
non-profit timeshare and/or condominium association for each Applicable Resort
pursuant to the terms of the Applicable Declaration, together with its
successors or assigns.

                     Applicable
Completion Date means, with
respect to the Work, the date of Completion of the Work for the Applicable
Phase or Applicable Resort as set forth in this Agreement, any Sub-Loan Agreement,
or the applicable Sub-Loan Documents.

                     Applicable
Declaration means with
respect to an Applicable Resort, the declaration or declarations of condominium
or timesharing, declaration or declarations of covenants, conditions, and restrictions,
master deed, or similar document or documents, together with any amendments,
restatements or supplements thereto, that establishes the underlying form of
ownership of such Applicable Resort and is recorded in the appropriate public
records of the Applicable Jurisdiction.

                     Applicable
Jurisdiction means with
respect to an Applicable Phase or an Applicable Resort, the state, county,
municipality, and/or other governmental jurisdiction in which such Applicable
Resort is located.

                     Applicable Mechanics Lien Law
means any
statute, ordinance, rule or other law of the state or any Governmental Agency
thereof, pertaining to the perfection and/or priority of the rights of
mechanics’, materialmen’s or other contractors’ claimants.

                     Applicable
Phase means Units,
buildings, facilities, Common Elements, common areas, and Amenities or
similarly situated improvements constructed or to be constructed during a
specified time period and dedicated to the Applicable Resort by addition to the
Applicable Declaration.

                     Applicable
Resort means an interval
ownership, condominium, timeshare project, and/or vacation ownership project
approved by Lender in its sole and absolute discretion consisting of, among
other things, certain Land, Units, Common Elements, common areas or similarly
situated improvements and Timeshare Interests, whether now existing or
hereafter added, in one (1) or more buildings or phases, and all related Common
Furnishings, easements, licenses, rights, interests, and other appurtenances,
as more fully described in the Applicable Declaration and the other Applicable
Timeshare Documents, as the same may be amended or supplemented from time to
time and as shall be set forth in the Applicable Sub-Loan Agreement.

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                     Applicable
Resort Contract means each
of the existing and future agreements relating to the acquisition, development,
operation, common areas, management, marketing, sales and maintenance of the
Applicable Resort only and to the extent within Borrower’s control, to the
extent the amount to be performed after the date hereof exceeds $100,000 per
contract or agreement, a list of which shall be attached as an exhibit to the
applicable Sub-Loan Agreement and to the extent Lender is funding the
acquisition or development pursuant to such contract.

                     Applicable
Timeshare Documents means each
Applicable Declaration and other documents and instruments relating to an
Applicable Resort only and/or the Units, Common Elements, Common Furnishings,
and Timeshare Interests thereat. Each Applicable Timeshare Document shall be in
form and content reasonably acceptable to Lender. Except as provided in any
Sub-Loan Agreement, Lender shall have received from Borrower true, correct, and
complete copies of the Applicable Timeshare Documents as a condition precedent
to any Advances under any Sub-Loan Agreement in respect of the Applicable
Resort to which such Applicable Timeshare Documents pertain.

                     Architect
means, with
respect to each Sub-Loan, a licensed architect or consultant in an Applicable
Jurisdiction who is acceptable to Lender.

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

                     Assignment of
Construction
Contract means that certain first-priority Assignment of Construction Contract
with respect to a Sub-Loan made by Borrower in favor of Lender, pursuant to
which Borrower collaterally assigns its rights but not its obligations under
the Applicable Sub-Loan to Lender in the event Lender is making Construction
Advances to fund all or a portion of the Work to be completed under such
Construction Contract.

                     Assignment of Property
Rights means that certain first priority
Assignment of Property Rights with respect to a Sub-Loan made by
Borrower in favor of Lender evidencing the direct, first and exclusive
collateral assignment to Lender of all right, title and interest of Borrower in
Applicable Resort Contracts, licenses, permits and other property rights
related to the Mortgaged Property and Sub-Loan Collateral under the Sub-Loan,
and any amendment, restatement, renewal or supplement thereto.

                     Borrower
means Bluegreen
Vacations Unlimited, Inc., a Florida corporation, and any wholly-owned
subsidiary of Bluegreen Vacations Unlimited, Inc., or of Guarantor which is
referenced as a “Borrower” in any Applicable Sub-Loan Agreement, together with
its successors and assigns.

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

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

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

                     Club
Documents means the
Bluegreen Vacation Club multi-site public offering statement and its exhibits
as amended from time to time as filed in Florida with the Division of Florida
Land Sales, Florida Vacation Plan and Timesharing Acts and Mobile Homes of the
Department of Business and Professional Regulation for the State of Florida.

                     Club
Management Contract has the meaning set forth in Section 14.20.

                     Club
Trustee has the meaning
set forth in Section 14.20.

                     Commencement
Date means the
date the Work begins on any Applicable Resort in connection with a Sub-Loan.

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

                     Common
Elements means the common
areas and facilities and similarly situated improvements for each Applicable
Resort, as defined or provided for in the Applicable Declaration or other
Applicable Timeshare Documents, including, without limitation, the Land and all
improvements thereto except for the Units that have been dedicated to the condominium
or comparable form of ownership, as well as any limited common elements, as
those terms are defined and used in the Applicable Declaration.

                     Common
Furnishings means all
furniture, furnishings, fixtures, appliances, carpeting, and equipment located
in a Unit or elsewhere within an Applicable Resort to the extent owned by
Borrower.

                     Completion
of the Work means one hundred
percent (100%) finished construction of the Work being funded by Lender (not
Substantial Completion) for each Applicable Resort or Applicable Phase thereof
as more fully described in the applicable Sub-Loan Agreement in accordance with
the Specifications for such Applicable Resort, certified to Lender by the
Inspector, Borrower and Contractor.

                     Construction
Advance means any Advance
for construction purposes with respect to any Sub-Loan Agreement.

                     Construction
Component means the
construction component or portion of any Sub-Loan.

                     Construction
Contract means a contract
for construction of improvements being funded by Lender as provided in a
Sub-Loan Agreement.

                     Construction
Mortgage means a mortgage
or deed of trust that creates a valid and enforceable first priority Lien against
the Mortgaged Property identified therein and secures in part the payment of
all principal, interest, and other amounts owed by Borrower to Lender, pursuant
to a Sub-Loan Note and all related Sub-Loan Documents.

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                     Contract
means a
written document executed by Purchaser and Borrower, pursuant to which
Purchaser agrees to purchase, and Borrower agrees to sell, a Timeshare Interest
or any Club membership interest in the Club.

                     Contractor
means with
respect to each Sub-Loan, at an Applicable Resort, the general contractor(s)
selected by Borrower and approved by Lender for any of the Work in connection
with any Sub-Loan for which Construction Advances are to be made by Lender and
any replacement general contractor approved by Lender.

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

                     Declarant
means the
“Declarant” or any successor or assign thereof under any Applicable Declaration
to the extent Borrower is a Declarant or a successor or assign of a Declarant
pursuant to the Applicable Declaration.

                     Default
means an event or
condition, the occurrence of which immediately is or, with the lapse of time or
the giving or notice or both, would become, an Event of Default hereunder or
under any Sub-Loan Agreement or other Sub-Loan Documents.

                     Default
Rate has the meaning
set forth in Section 4.2.

                     Disbursement
Agent has the meaning
set forth in Section 8.2.

                     Environmental
Laws means the
Comprehensive Environmental Response, Compensation and Liability Act of 1980,
as amended from time to time (“CERCLA”), the Resource Conservation and Recovery
Act of 1976, as amended from time to time (“RCRA”), the Superfund Amendments and
Reauthorization Act of 1986, as amended, the federal Clean Air Act, the federal
Clean Water Act, the federal Safe Drinking Water Act, the federal Toxic
Substances Control Act, the federal Hazardous Materials Transportation Act, the
federal Emergency Planning and Community Right to Know Act of 1986, the federal
Endangered Species Act, the federal Occupational Safety and Health Act of 1970,
the federal Water Pollution Control Act, and any and all comparable statutes or
ordinances enacted in an Applicable Jurisdiction, as all of the foregoing laws
may be amended from time to time, and any rules or regulations promulgated
pursuant to the foregoing; together with any similar local, state or federal
statutes, ordinances, rules, or regulations, either in existence as of the date
hereof or enacted or promulgated after the date of this Agreement, that concern
the management, control, storage, discharge, treatment, containment, removal,
and/or transport of Hazardous Materials or other substances that are or may become
a threat to public health or the environment; together with any common law
theory involving Hazardous Materials or substances that are (or alleged to be)
hazardous to human health or the environment, based on nuisance, trespass,
negligence, strict liability, or other tortious conduct, or any other federal,
state, or local statute, ordinance, regulation, rule, policy,

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 or determination pertaining to health,
hygiene, the environment, or environmental conditions.

                     Event
of
Default has the meaning set forth in Section 19 of this Agreement.

                     Financial
Statements means the tax
returns, balance sheets, and statements of income and expense of Guarantor and
the related notes and schedules delivered prior to the Closing Date and any
Sub-Loan Closing Date, together with the financial statements and reports of
Guarantor delivered to Lender prior to the Closing Date and any Sub-Loan
Closing Date; and the monthly and annual financial statements and reports
required to be provided to Lender pursuant to Section 9.7 hereof.

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

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

                     Governmental
Agency has the meaning
set forth in Section 12.18.

                     Guarantor
means Bluegreen
Corporation, a Massachusetts corporation, together with its successors and
assigns, as the Guarantor of each and every Sub-Loan.

                     Hazardous
Materials means “hazardous
substances,” “hazardous waste,” “hazardous constituents,” “toxic substances,”
or “solid waste,” as defined in the Environmental Laws, and any other
contaminant or any material, waste, or substance that is petroleum or petroleum
based, asbestos, polychlorinated biphenyls, flammable explosives, or radioactive
materials.

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

                     Initial
Sub-Loan Advance means as to a
particular Sub-Loan, the first Advance by Lender under any Sub-Loan Agreement
in connection therewith.

                     Inspector has
the
meaning set forth in Section 12.21.

                     Interest
Rate means a variable
rate per annum equal to the WSJ Prime Rate plus one and one-half percent
(1.50%) per annum. The Interest Rate charged for each calendar month shall be
fixed based upon the WSJ Prime Rate published or otherwise determined prior to
and in effect as of the first Business Day of such calendar

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 month. The Interest Rate shall be calculated
based on a 360-day year and charged for the actual number of days elapsed.
Lender also reserves the right to charge an interest rate based at a margin
over the London InterBank Offered Rate (“LIBOR”) which, if applicable
will be expressly set forth in any Applicable Sub-Loan Agreement and shall be
reasonably equivalent to and no greater than the WSJ Prime Rate plus one and
one-half percent (1.50%) per annum.

                     Inventory
Mortgage means a mortgage
or deed of trust that creates a valid and enforceable first-priority Lien
against the encumbered Timeshare Interests, Units, and Borrower’s interests (if
any) in Common Elements, and Amenities which are part of an Applicable Resort
and encumbered by the Lien and secures in part the payment of all principal,
interest, and other amounts owed by Borrower to Lender, pursuant to a Sub-Loan
Note and all related Sub-Loan Documents.

                     Land
means the real
property upon which any of the improvements or portions of an Applicable Resort
are situated.

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

                     Legal Requirements
means, with
respect to an Applicable Resort, any and all federal, state, and local
statutes, ordinances, rules, regulations, court orders and decrees,
administrative orders and decrees, and other legal requirements of any and
every conceivable type to which Borrower, Guarantor, such Applicable Resort or
any portion thereof, or all or any portion of any Sub-Loan Collateral is or
becomes subject from time to time.

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

                     Lien
means any mortgage,
security interest, or other interest in property securing an obligation owed
to, or valid claim by, a Person other than the owner of such property, whether
such interest arises in equity or is based on common law, statute, or contract.

                     Management
Agreement means the
Management Agreement between the Applicable Association and the Manager or the
applicable manager affiliated with Borrower for the management of the
Applicable Phase or Applicable Resort, as amended, restated, extended or
supplemented from time to time, and any new management or sub-management
agreement executed in its place, all of which agreements (other than
non-material revisions) must be in form and content reasonably approved by
Lender.

                     Manager
means Bluegreen
Resorts Management, Inc., a Delaware corporation, its successors and assigns.

                     Mandatory
Prepayment means any
prepayment of any Sub-Loan required by Section 6.3(b) of this Agreement
or any Sub-Loan Agreement.

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                     Master
Facility means a credit
facility consisting of one or more Sub-Loans in the aggregate maximum principal
amount of $75,000,000 (inclusive of the existing loans for Odyssey Dells and
World Golf Village) as described in this Agreement and evidenced and secured by
each Sub-Loan Agreement and the related Sub-Loan Documents.

                     Maximum Master
Facility Amount means
$75,000,000, as further described in Sections 2.3(d) and 2.5.

                     Maximum TFC
Relationship Amount means
$100,000,000, as further described in Section 2.8. 

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

                     Obligations
means all present
and future indebtedness, liabilities, obligations, and responsibilities, both
financial and otherwise, to which Borrower is subject under this Agreement, any
Sub-Loan Agreement or any of the Sub-Loan Documents, whether direct or
indirect, absolute or contingent, including but not limited to all amounts due
or becoming due to Lender in respect of any Sub-Loan or any of the Sub-Loan
Documents, including principal, interest, prepayment premiums, contributions,
taxes, insurance premiums, loan charges, custodial fees, reasonable attorneys’
and paralegals’ fees and expenses and other fees or expenses incurred by Lender
or advanced to or on behalf of Borrower by Lender, pursuant to this Agreement,
any Sub-Loan Agreement or the other Sub-Loan Documents or in connection with
Lender’s enforcement of the prompt and complete payment and performance by
Borrower and Guarantor of all indebtedness, liabilities, obligations, and
responsibilities owed by Borrower, pursuant to this Agreement, any Sub-Loan
Agreement, any of the other Sub-Loan Documents, or otherwise.

                     Obligor
means Borrower
and Guarantor, individually.

                     Obligors
means Borrower
and Guarantor, collectively.

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

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

                     Permitted
Liens and Encumbrances means those liens
and encumbrances affecting all or a portion of the Sub-Loan Collateral which
are set forth in the applicable Title Policy.

                     Person
means a natural
person, corporation, partnership, limited liability company, joint venture,
association, estate, trust, government, governmental subdivision or agency,
other legal entity, or any combination thereof.

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                     Phase I
Environmental
Inspection [confirm
changes] means a Phase I Environmental Site Assessment (done per ASTM
Standard E1527-05) of an Applicable Resort, including, without limitation, the
relevant Land and all improvements thereto which may be ordered by Borrower (if
from a Lender pre-approved Person) which shall cause the report’s preparer to
provide a reliance letter in favor of Lender or directly by Lender. 

                     Points
has the
meaning assigned to such term in the Club Documents.

                     POS
has the meaning
set forth in Section 14.20.

                     Property means
any interest in any kind of
property or asset of Borrower, whether real, personal or mixed, or tangible or
intangible.

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

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

                     Release
Payment means,
individually and collectively, with respect to a Sub-Loan, any fee or amount required
to be paid by Borrower to Lender in consideration for the release of all or a
portion of any Sub-Loan Collateral from the Lien of a Sub-Loan Mortgage or any
other Lien in favor of Borrower. For purposes of this Agreement and any
Sub-Loan Agreement or Sub-Loan Mortgage, the term “Release Payment” shall
include any other payments, however denominated, required to be made by
Borrower to Lender upon the sale of a Timeshare Interest at an Applicable
Resort, pursuant to any of the Sub-Loan Documents.

                     Released
Property has the meaning
set forth in Section 21.

                     Request
for Sub-Loan Advance means a Request
for Sub-Loan Advance as described in Section 2.4.

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

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                     Retainage
Disbursement Requirements has the meaning
set forth in Section 8.5.

                     Securitization
Bonds has the meaning
set forth in Section 7.2.

                     Site
Plan has the meaning
set forth in Section 10.20.

                     Specifications
means collectively,
in connection with any Sub-Loan, the final plans and specifications for the
Work to be performed on an Applicable Phase or Applicable Resort for which
Lender has made or will make a Construction Advance as submitted to and
approved by Lender, and all amendments, modifications and supplements thereto
and all new plans and specifications with respect thereto, all of which are
subject to the prior written approval of Lender.

                     Subcontractor
has the meaning
set forth in Section 11.5.

                     Sub-Loan
or Applicable Sub-Loan means,
individually and collectively, an acquisition, development, construction,
inventory, or working capital loan made by Lender to Borrower in connection
with an Applicable Resort or Applicable Phase. Each Sub-Loan must be approved
by Lender in writing in its sole and absolute discretion. Attached hereto as Exhibit
C is a current list of all Sub-Loans which exhibit shall be amended if and
when additional Sub-Loans are added under this Master Facility.

                     Sub-Loan Account
has the meaning
set forth in Section 3.2.

                     Sub-Loan
Advance Period means a period of
time from the Initial Sub-Loan Advance, determined with respect to each
Sub-Loan and set forth in each Sub-Loan Agreement.

                     Sub-Loan
Agreement or Applicable
Sub-Loan Agreement means, individually and collectively, the loan and
security agreement (including all exhibits and schedules thereto) for each and
every Sub-Loan, entered into by Lender and Borrower with respect to such
Sub-Loan as it may be amended, restated, extended or supplemented from time to
time.

                     Sub-Loan
Approved Costs means the final,
verifiable costs to purchase the Acquired Assets and/or to be financed pursuant
to any Applicable Sub-Loan as disclosed in the final Sub-Loan Cost Certificate
for any Applicable Sub-Loan, final approval of which has been granted by
Lender.

                     Sub-Loan
Architect’s Contract has the meaning
set forth in Section 11.4.

                     Sub-Loan
Borrowing Base
means as to a particular Sub-Loan eighty-five percent (85%) of the Sub-Loan
Approved Costs, but not in excess of $30,000,000 for each Sub-Loan.

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                    Sub-Loan
Closing Date means the effective date of any Sub-Loan
Agreement as set forth in the heading of such Sub-Loan Agreement.

                    Sub-Loan
Collateral means, individually and collectively, any and
all collateral granted or available to Borrower to secure the payment by
Borrower of all principal, interest, and other amounts owed to Lender by
Borrower in connection with each Sub-Loan as such term is generally defined in Section 7.1
hereof and may be more particularly defined in the Applicable Sub-Loan
Agreement. 

                    Sub-Loan
Construction Contract has the meaning set forth in Section 11.3.

                    Sub-Loan
Cost Certificate has the meaning set forth in Section
11.2.

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

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

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

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

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

                    (e)          all
costs, outlays, reasonable legal fees and expenses of every kind and character
had or incurred in (1) the interpretation or enforcement of any of the
provisions of, or the creation, preservation or exercise of rights and remedies
under, any of the Sub-Loan Documents including the costs of appeal; (2) the
preparation for, negotiations regarding, consultations concerning, or the
defense or prosecution of legal proceedings involving any claim or claims made
or threatened against the Lender arising out of this transaction or the
protection of the Sub-Loan Collateral securing the Sub-Loan or Advances made
hereunder, expressly including, without limitation, the defense by Lender of
any legal proceedings instituted or threatened by any Person to seek to recover
or set aside any payment or setoff theretofore, received or applied by the
Lender with respect to the Obligations, and any and all appeals thereof; and
(3) the advancement of any expenses provided for under any of the Sub-Loan
Documents;

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

                    (g)          all
costs and expenses incurred by Lender under the Sub-Loan;

12

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

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

                    Sub-Loan
Documents means, individually and collectively, all
documents and instruments that evidence or secure each Sub-Loan, including but
not limited to any Sub-Loan Note, Sub-Loan Guaranty, Sub-Loan Agreement and
Sub-Loan Mortgage executed and delivered to Lender in connection therewith,
together with the Applicable Approved Construction Schedule and Applicable
Approved Construction Budget. The form and content of each Sub-Loan Document
shall be satisfactory to Lender, in its sole and absolute discretion, and
approved by Lender in writing prior to any Advances made in respect of the
Sub-Loan to which such Sub-Loan Document pertains. Borrower agrees not to
amend, restate, or otherwise modify any Sub-Loan Documents in a material manner
without Lender’s prior written consent, which consent may be granted or
withheld, in Lender’s sole and absolute discretion. Copies of any such amended,
restated, or otherwise modified Sub-Loan Document, as so approved by Lender,
shall be provided to Lender promptly following the effective date thereof.

                    Sub-Loan
Guaranty means, individually and collectively, a document
or instrument executed by Guarantor and delivered to Lender, pursuant to which
Guarantor guarantees the absolute and unconditional payment and performance of
all of the Obligations pursuant to each and every Sub-Loan and all amounts
secured by or under the Sub-Loan Documents; the term “Sub-Loan Guaranty” shall
further include any document or instrument executed by Guarantor and delivered
to Lender, pursuant to which the completion of construction of Work in
accordance with the relevant Specifications and all Legal Requirements is
guaranteed; and any amendment, restatement, extension or supplement thereto and
any new guaranty or similar agreement given in substitution or replacement
therefor and any new guaranty or surety agreement by any other Person with
respect to all or any part of the Obligations.

                    Sub-Loan
Maturity Date means the maturity date for each Sub-Loan
as set forth in the Sub-Loan Documents.

13

                    Sub-Loan
Mortgage means, individually and collectively, an
Inventory Mortgage or a Construction Mortgage, which at any time encumbers an
Applicable Phase or Applicable Resort and is security for a Sub-Loan Note.

                    Sub-Loan
Note means, individually and collectively, any promissory
note executed and delivered by Borrower to Lender in connection with any
Sub-Loan that satisfies each of the following criteria:

                    (a)          The
Sub-Loan that it evidences was originated by Lender in the ordinary course of
its business;

                    (b)          Advances
by Lender under such Sub-Loan Note may be used by the Borrower solely for
purposes of acquiring, developing, constructing, improving, or providing
working capital in connection with the Applicable Resort or Applicable Phase;

                    (c)          The
applicable Sub-Loan Documents have been approved in writing by Lender;

                    (d)          Lender
is the sole payee;

                    (e)          It
is secured by a Sub-Loan Mortgage;

                    (f)          Principal
and interest payments on it are payable to Lender in legal tender of the United
States;

                    (g)          It
provides for the payment to Lender of interest at the Interest Rate;

                    (h)          It
requires such minimum amortization of principal as agreed to in writing in the
Applicable Sub-Loan Agreement;

                    Notwithstanding
a particular Sub-Loan Note’s satisfaction of all of the foregoing criteria or
any terms, provisions, or conditions hereof to the contrary:

                    In
no event shall Lender be required to make Advances hereunder if Advances in
connection therewith, when added to all other Advances made by Lender under all
of the Sub-Loans at such date of determination, would exceed the Maximum Master
Facility Amount or the Maximum TFC Relationship Amount.

                    Sub-Loan
Subcontract has the meaning set forth in Section 11.5.

                    Subordination
Agreement means any agreement subordinating the
obligations owed by an Obligor to a creditor to the Obligations owed by such
Obligor to Lender.

                    Substantial
Completion has the meaning set forth in Section 11.16.

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

14

                    Timeshare
Interest means an undivided fee-simple interest or
timeshare interval in a particular Unit or in an Applicable Phase or Applicable
Resort as a whole, as a tenant in common with other owners of undivided
interests in such Unit, Applicable Phase or Applicable Resort, or a lease,
license, Club membership interest or other form of “right-to-use” timeshare
interest, together with all rights, benefits, privileges, and interests
appurtenant thereto, including but not limited to the right to use and occupy a
Unit within the Applicable Phase, Applicable Resort and the Common Elements and
Common Furnishings appurtenant to such Unit and/or the Applicable Resort during
a reserved or assigned use period, all as more specifically described in the
Applicable Declaration.

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

                    Title
Policy
means ALTA extended coverage mortgagee’s loan policy of title insurance issued
by the Title Company and complying with the provisions of Section 17.16
issued in connection with this Agreement and each Sub-Loan Agreement.

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

                    Unit
means an apartment, condominium unit, commercial condominium unit,
accommodation, assigned occupancy right, or other structure that is affixed to
real property and designed and available, pursuant to applicable Legal
Requirements, for use and occupancy as a vacation residence by one (1) or
more individuals or for a commercial purpose pursuant to the Applicable
Declaration, together with all related Common Elements, Common Furnishings,
easements, and other appurtenances thereto to be included in the Sub-Loan Collateral.

                    Work
means in connection with each Sub-Loan and Sub-Loan Agreement, the work being
performed at an Applicable Phase or Applicable Resort all or a portion of which
is to be funded by Lender as more fully described in the applicable Specifications
for an Applicable Phase or Applicable Resort and in the Applicable Sub-Loan
Agreement.

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

15

          1.2.          Construction.
Unless the context of this Agreement clearly requires otherwise, references to
the plural include the singular, references to the singular include the plural,
the term “including” is not limiting, and the term “or” has, except where
otherwise indicated, the inclusive meaning represented by the phrase “and/or.”
The words “hereof,” “herein,” “hereby,” “hereunder,” and similar terms in this
Agreement refer to this Agreement as a whole and not to any particular
provision of this Agreement. An Event of Default shall “continue” or be
“continuing” until such Event of Default has been waived in writing by Lender
or cured and the cure accepted by Lender. Section, Subsection, clause,
schedule, and exhibit references are to sections, subsections, clauses,
schedules and exhibits in this Agreement unless otherwise specified. Any
reference in this Agreement, any Sub-Loan Agreement or any of the Sub-Loan
Documents to or any other document or agreement shall include all alterations,
amendments, changes, extensions, modifications, renewals, replacements,
substitutions, supplements, and restatements thereto and thereof, as
applicable.

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

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

SECTION 2. THE
MASTER FACILITY.

          Lender
hereby agrees to the Master Facility, including Advances under any Sub-Loans,
in accordance with all of the terms, provisions, and conditions hereof, any
Sub-Loan Agreement or under any of the Sub-Loan Documents.

          2.1.          Purposes.
The proceeds of the Master Facility and each Sub-Loan shall be used exclusively
to enable Lender to make acquisition, development, construction, inventory, and
working capital Sub-Loans to Borrower in connection with Applicable Phases or
Applicable Resorts as more particularly set forth in the Applicable Sub-Loan
Agreement. A Sub-Loan may consist of an Acquisition Component and/or
Construction Component as set forth in the Applicable Sub-Loan Agreement.

          2.2.          Qualified
Sub-Loans. Lender shall have the right, in its sole and absolute
discretion, to determine whether a particular loan constitutes a qualified
Sub-Loan hereunder. Thereafter, Lender shall make such determinations in its
reasonable discretion, based on its own analysis and internal recommendation
and approval. Lender shall have the absolute and unconditional right to conduct
its own due diligence

16

with respect
to each proposed Sub-Loan that Borrower proposes be deemed a qualified Sub-Loan
hereunder, the reasonable costs of which shall be borne by Borrower. As part of
such due diligence, Lender may, in its sole discretion, make or cause to be
made, at Borrower’s sole cost and expense, Lender’s own physical inspection of
the Applicable Resort and all contemplated Sub-Loan Collateral. No loan shall
be deemed a qualified Sub-Loan hereunder unless and until Lender has so
designated it in writing. Once Lender has approved a Sub-Loan, the parties will
enter into a Sub-Loan Agreement and Sub-Loan Documents for the Applicable
Resort or Applicable Phase which shall incorporate by reference the terms and conditions
of this Agreement. All parties to any Sub-Loan Agreement will agree to become a
party to this Agreement and agree to be bound by and comply with the terms
hereof.

          2.3.     Advances.

                    (a)          Borrowing
Term. No Advances of any Sub-Loan will be made by Lender hereunder after
the last day of the Sub-Loan Advance Period. Advances for each Sub-Loan will be
made to Borrower in accordance with the terms of this Agreement, any Sub-Loan
Agreement and the other applicable Sub-Loan Documents. The term of this
Agreement shall expire two (2) years from the Closing Date unless extended by
an agreement in writing executed by the parties hereto; provided, however, each
Sub-Loan will have its own Sub-Loan Advance Period as set forth in the
Applicable Sub-Loan Agreement.

                    (b)          Components
of Sub-Loans. A qualified Sub-Loan may contemplate the extension of credit
on a revolving or non-revolving basis as set forth in the Applicable Sub-Loan
Agreement. Each Sub-Loan may consist of different components including, without
limitation, an acquisition, development, construction and/or inventory
component.

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

                    (d)          Additional
Restrictions on Advances. Notwithstanding anything to the contrary
contained in Section 2, Lender shall have no obligation to make any
Advance under the Sub-Loan which would cause the aggregate outstanding balance
under the Sub-Loan to exceed (i) the maximum balance of the Sub-Loan as set
forth in any Applicable Sub-Loan Agreement but in no event in excess of
$30,000,000 for any Sub-Loan; (ii) 85% of the Sub-Loan Approved Costs;
(iii) the Maximum Master Facility Amount; or (iv) the Maximum TFC
Relationship Amount. On or prior to any Sub-Loan Closing Date, Borrower shall
provide Lender with evidence in form and substance acceptable to Lender that
Borrower has a minimum of fifteen percent (15%) equity in the Acquired Assets,
Applicable Resort or Applicable Phase related to the Applicable Sub-Loan.

17

          2.4.          Requests
for Advance under Sub-Loan. Except for Advances to pay Sub-Loan Costs and
other Obligations of Borrower hereunder or under the Sub-Loan Documents, each
Sub-Loan Advance shall be made pursuant to a Request for Sub-Loan Advance
submitted to Lender in the form attached hereto as Exhibit A or Exhibit
D, as applicable, with appropriate insertions and duly executed, together
with all required supporting documentation. Each such Request for Advance under
an Acquisition Component and/or a Construction Component thereof must be
submitted to Lender at least ten (10) Business Days prior to the date the
Advance is requested to be made, except in connection with the initial Advance
with respect to the financing of Acquired Assets which can occur simultaneously
with the closing under the Acquisition Contract through an escrow arrangement
acceptable to Lender or as otherwise provided in a Sub-Loan Agreement.

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

          2.6.          Use
of Proceeds. Advances under each Sub-Loan will be used by Borrower solely
for the purposes described in Section 2.3 hereof and/or under the
Applicable Sub-Loan Agreement.

          2.7.          Closing.
The closing under this Agreement shall take place effective as of the Closing
Date at such place as Lender may require, provided that all conditions for
closing have been satisfied. Each Sub-Loan Agreement shall have its own
Sub-Loan Closing Date as set forth therein.

          2.8.          Maximum
TFC Relationship Amount. The aggregate maximum amount outstanding under all
Sub-Loans, combined with the aggregate maximum amount outstanding under all
loans, purchase or credit facilities to Borrower, Guarantor and Affiliates of
Borrower and Guarantor from Lender or any Affiliate of Lender including,
without limitation, all bonds or other securities or certificates purchased by
Lender in connection with any Bluegreen securitization now or in the future
shall not in the aggregate exceed the Maximum TFC Relationship Amount. As of
the date hereof, Lender has purchased certain bonds in connection with
Bluegreen’s 2007-A and 2008-A 

18

securitizations.
The outstanding balance of such bonds shall be calculated as part of the
Maximum TFC Relationship Amount.

SECTION 3. SUB-LOAN
DOCUMENTS AND SUB-LOAN ACCOUNT.

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

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

SECTION 4. INTEREST RATE.

          4.1.    Interest
Rate. Subject to the terms of any Sub-Loan Agreement to the contrary, until
the occurrence of an Event of Default and after same is cured (if applicable)
and the cure accepted by Lender, interest shall accrue and be payable on the
average monthly outstanding principal balance of the Applicable Sub-Loan as
follows:

                    (a)          From
the Sub-Loan Closing Date until the first day of the month following the month
during which the Sub-Loan Closing Date occurs, at a yearly rate which is equal
to the Interest Rate in effect on the Sub-Loan Closing Date, and

                    (b)          On
the first day of the second month following the month during which the Sub-Loan
Closing Date occurs and on the first day of each month thereafter, the yearly
rate at which interest shall be payable on the unpaid principal balance of the
Applicable Sub-Loan Loan which is equal to the Interest Rate in effect on such
date.

                    (c)          Notwithstanding
anything herein to the contrary the interest rate accruing and payable on the
Sub-Loan shall not be less than the Interest Rate in effect at such time. In
the event of a conflict between this Agreement and any Sub-Loan Agreement or
Sub-Loan Note, the interest rate set forth in the Applicable Sub-Loan Agreement
or Sub-Loan Note shall control.

19

          4.2.          Default
Rate. Subject to the terms of any Sub-Loan Agreement to the contrary, from
and after the occurrence of an Event of Default (with respect to any Sub-Loan
Agreement or Sub-Loan Document) until cured (if applicable) and the cure
accepted by Lender, interest shall accrue and be payable on the unpaid
principal balance of the Applicable Sub-Loan and all other Obligations under the
Sub-Loan Documents at a rate (the “Default Rate”) which is four (4)
percentage points higher than the rate provided in Section 4.1 or in any
Applicable Sub-Loan Agreement if the interest rate is different therein. Any
judgment obtained for sums due under the Sub-Loan Note or other Obligations
under the applicable Sub-Loan Documents will accrue interest at the Default
Rate until paid. Obligors acknowledge and agree that the Default Rate is
reasonable in light of the increased risk of collection after occurrence of an
Event of Default under any Sub-Loan.

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

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

SECTION 5. FEES.

          5.1.          Sub-Loan
Funding Fee. Borrower agrees to pay to Lender a fee equal to one percent
(1%) of each Sub-Loan Advance, payable at the time of each such Sub-Loan
Advance unless otherwise provided in the Applicable Sub-Loan Agreement. Such
fee shall not be refundable in whole or in part.

          5.2.          Late
Charge. In the event that any payment required under any Sub-Loan (other
than the sum due upon maturity or earlier acceleration of the Sub-Loan) is not
received by Lender within ten (10) days after the due date, Obligors shall pay
a late charge equal to five percent (5%) of the total amount of such payment to
defray the expenses incident to handling such delinquent payments, and to
compensate Lender for the harm and damages related to such late payments.
Obligors hereby acknowledge and agree that such late charges are reasonable in
light of the anticipated and the actual harm caused by the late payments, the
difficulties of proof of loss, harm and damages, and the inconvenience and
non-feasibility of Lender otherwise obtaining an adequate remedy.

20

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

SECTION 6. PAYMENTS.

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

                    (a)          Interest.
Subject to the terms of any Sub-Loan Agreement or Sub-Loan Note to the
contrary, interest only on the outstanding principal balance of the Sub-Loan
Note or in respect to the Sub-Loan owed during the prior calendar month shall
be payable monthly on the twentieth (20th) day of each calendar month,
commencing on the 20th day of the month following the month in
which any Sub-Loan is closed. The first interest payment shall include interest
accrued between the Sub-Loan Closing Date and the last day of the month in
which the Sub-Loan is closed. At Lender’s discretion interest not paid when due
may be added to the principal balance of any Sub-Loan.

                    (b)          Principal.

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

                                  (ii)          In
addition to all other payments required, upon the sale (and expiration of any
applicable rescission period) of each Timeshare Interest planned in the
Applicable Phase which is subject to the Lien of Lender’s Sub-Loan Mortgage as
of the Sub-Loan Closing Date, Borrower shall make a Release Payment consisting
of a principal reduction payment on the Applicable Sub-Loan in an amount equal
to an agreed upon percentage of the sales price per sale of each Timeshare
Interest sold and released from the Lien of the Sub-Loan Mortgage and other
Sub-Loan Documents at the Applicable Resort which percentage shall be
specifically provided in the Applicable Sub-Loan Agreement. Each Release
Payment shall be made by the 20th day of the calendar month following the month
of the sale (and expiration of any applicable rescission period) of the
applicable Timeshare Interest. The Release Payment shall be redetermined and
adjusted either to increase or decrease the amount of the Release Payment, as
appropriate, no more often than once at the end of each consecutive three (3)
month period following the execution of each Sub-Loan Agreement, as reasonably
determined by Lender, so that upon the sale of 85% of the Timeshare Interests
subject to the Lien of Lender’s Sub-Loan Mortgage as of the Sub-Loan Closing
Date, the Sub-Loan will be repaid in full. In the event of any conflict between
this provision (including without limitation the percentages and dates set
forth herein) and 

21

the applicable
Release Payment provision in any Sub-Loan Agreement or Sub-Loan Mortgage, the
terms of the Sub-Loan Agreement or Sub-Loan Mortgage shall control.

                                  (iii)          Notwithstanding
anything herein to the contrary, the Sub-Loan Agreement may provide for Release
Payments which differ from those set forth in (ii) above or for cumulative
minimum annual or semi-annual principal repayments to be made by Borrower by
certain dates prescribed therein.

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

                    (c)          Partial
Releases. Under no circumstances shall Lender execute and deliver any
partial releases from the Lien of a Sub-Loan Mortgage (i) unless and until
the Release Payment that corresponds to the Unit or Timeshare Interest in
question, pursuant to the Sub-Loan Documents, has been paid to and received by
Lender or (ii) if a Default or Event of Default has occurred under such
Sub-Loan Documents. Lender shall not be responsible for any of the costs
incident to the preparation and recording of partial releases.

                    (d)          Final
Payment. Notwithstanding any term, provision, or condition hereof to the
contrary, the entire outstanding principal balance of the Sub-Loan, together
with any and all accrued but unpaid interest thereon and all other Obligations
under each Sub-Loan Agreement or Sub-Loan Documents, shall immediately be paid
via wire transfer by Borrower to Lender and otherwise be satisfied in full on
or before the earlier to occur of (i) the occurrence of an Event of
Default hereunder or under the Applicable Sub-Loan Agreement; or (ii) the
Sub-Loan Maturity Date.

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

          6.3.     Prepayment.

                    (a)          Voluntary.
Any Sub-Loan may be prepaid at any time by Borrower without penalty or premium.

                    (b)          Mandatory.
If at any time and for any reason, the outstanding unpaid principal balance of
the Sub-Note exceeds the aggregate amount of the applicable Sub-Loan Borrowing
Base, then, within five (5) days following Borrower’s receipt of
telecopied notice from Lender of the occurrence of such excess over the
applicable Sub-Loan Borrowing Base or, absent such telecopied notice, within
fifteen (15) days after the end of the calendar month in which such excess
first occurred,

22

Borrower shall
prepay the outstanding principal balance of the Sub-Loan Note in an amount
equal to the difference between the outstanding principal balance of the
applicable Sub-Loan Note and the aggregate amount of the applicable Sub-Loan
Borrowing Base. Additionally, Borrower will be obligated to make cumulative
minimum annual or semi-annual principal prepayments as required under each
Applicable Sub-Loan Agreement. 

          No
prepayment premium or penalty shall be due Lender in connection with any voluntary
or mandatory prepayment of any Sub-Loan. 

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

SECTION 7. SECURITY;
GUARANTY. 

          7.1.    Security.
The Obligations shall be secured by, and Borrower hereby unconditionally grants
to Lender a first priority Lien upon and security interest in (unless otherwise
agreed to in the Sub-Loan Agreement), all of the following Property whether now
owned or hereafter acquired of whatever character to the extent of any
Borrower’s (under any Applicable Sub-Loan Agreement) right, title and interest
therein (collectively, the “Sub-Loan Collateral”): 

                    (a)          The
Applicable Phase or Applicable Resort Land, the Units and the Timeshare
Interests thereon, together with all improvements, Amenities, fixtures, leases,
rents, common areas and Common Elements, all easements, rights-of-way,
privileges and appurtenances belonging or in any way appertaining thereto or
which are encumbered by any applicable Sub-Loan Mortgage securing a Sub-Loan
Note in connection with a Sub-Loan (individually as to a single Sub-Loan and
collectively as to all Sub-Loans, the “Mortgaged Property”). 

                    (b)          All
existing and future equipment, furnishings, inventory, supplies, apparatus,
appliances, furnishings, machinery, plumbing, heating, ventilation, air
conditioning system, and fixtures, accounts, accounts receivable, chattel
paper, contract rights, documents, instruments, and general intangibles at any
time located at, arising out of the use of, and/or used in connection with the
operation of the Mortgaged 

23

Property, with
appropriate non-disturbance language relating to common area equipment,
fixtures and furniture. 

                    (c)          All
Contracts that remain encumbered by the Lien of Lender’s Sub-Mortgage, together
with all downpayments, deposits and proceeds thereof in connection with such
Contracts until the payment of the agreed upon Release Payments to Lender and
the partial release of Lender’s Lien as evidenced by the applicable Sub-Loan
Mortgage. 

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

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

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

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

                    (h)          All
other existing and future agreements to which Borrower is or becomes a party or
holds any interest therein and which in any way relate to the use, occupancy,
maintenance or enjoyment of the Mortgaged Property, including, but not limited
to, all escrow and reserve accounts, Applicable Resort Contracts, Applicable
Timeshare Documents, utility contracts, maintenance agreements, Management Agreements,
sub-management agreements and service contracts, the Applicable Declarations
(and Declarant’s rights, privileges, entitlements and interests thereunder to
the extent Borrower is Declarant or a successor or assign of Declarant), any
voting rights and rights and interests in the Applicable Association of
Borrower or assigned to Borrower, and any agreement guaranteeing the
performance of the obligations contained in any of the foregoing agreements,
all as they relate to the Mortgaged Property. 

24

                    (i)          All
proceeds arising from the rental of any Timeshare Interest or Unit, subject to
the Lien of Lender’s applicable Sub-Loan Mortgage. 

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

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

                    (l)          All
Points with respect to the Mortgaged Property and all rights arising on account
of such Points under the Club Documents. 

                    (m)         All
intellectual property, software and other personal property related to the
Mortgaged Property to the extent solely owned by Borrower including, without
limitation to the extent assignable, the naming rights to “the Applicable
Resort”, and specifically excluding, without limitation, any such intellectual
property, software and personal property owned by Guarantor or any Affiliate. 

                    (n)         To
the extent permissible by law, any existing or future development agreements
for the Mortgaged Property. 

                    (o)          All
existing and future development, construction, engineering, design services and
other agreements for the timesharing of labor and/or materials in connection
with the development and construction work related to the Mortgaged Property,
contracts between Borrower, Guarantor, and any architect, planner, contractor,
engineer, inspector or sub-contractor together with payment and performance
bonds related to the Work and all plans, Specifications, drawings, books and
records related to the Work. 

                    (p)          All
of Borrower’s rights in and to any and all easements, contracts, leasehold
interests (whether as lessor or lessee), permits, licenses, and approvals in
respect of all or any portion of the Mortgaged Property; 

                    (q)          Extensions,
additions, improvements, betterments, renewals, substitutions, and replacements
of, for, or to any of the foregoing, wherever located, together with the
products, proceeds, issues, rents, and profits thereof and any replacements,
additions, or accessions thereto or substitutions thereof, and all rights in or
under insurance policies, judgments, claims, settlements, awards and to the
proceeds of any of the foregoing, all rights to unearned or refunded insurance
premiums, and the proceeds of any condemnation awards or any claims regarding
any of the foregoing; 

                    (r)          All
now owned or hereafter acquired right, title, and interest of Lender in and to
any and all of the collateral for any Sub-Loan and any other credit facility
now or in the future between Lender and Borrower or an Affiliate of Borrower;
and 

                    (s)          Any
and all cash and non-cash proceeds of the foregoing. 

25

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

          Borrower
consents and agrees that Lender shall not be under any Obligation to marshal
any assets in favor of Borrower or against or in payment of any or all of the
Obligations. 

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

          Notwithstanding
the foregoing the Mortgaged Property and Sub-Loan Collateral shall not include
the Released Property, the Reservation System, the Club Management Contract or
any rights to the name “Bluegreen” or “Bluegreen Vacation Club” or any
variation thereof. 

          7.2.          Cross-Default
and Cross-Collateral. An Event of Default hereunder or under any Sub-Loan
Agreement or Sub-Loan Documents shall constitute a default under any other loan
documents between Borrower or Guarantor and Lender and vice versa, including,
without limitation, any other Sub-Loan Agreements or Sub-Loan Documents. At all
times hereunder, all Sub-Loan Collateral with respect to any Sub-Loan Agreement
or Sub-Loan Documents shall secure and collateralize the Applicable Sub-Loan
and each and every Sub-Loan covered by the terms hereof and under any Sub-Loan
Agreement. The Sub-Loan Collateral for any Applicable Sub-Loan shall be
released upon payment in full of the Applicable Sub-Loan for which it serves as
primary security so long as there is no Event of Default under the Applicable
Sub-Loan Agreement or any other Sub-Loan Agreement for which there is any
amount outstanding and unpaid at the time of the occurrence of such Event of
Default. If an Event of Default hereunder or under any Sub-Loan Document exists
at the time of such requested release and during the time such Event of Default
is continuing, Lender shall not be obligated to release any existing Sub-Loan
Collateral. Notwithstanding the foregoing to the contrary, a default under any
of the existing or future bonds or other securities or certificates purchased
by Lender in connection with any securitization undertaken by a Bluegreen entity
or Affiliate now or in the future (collectively, “Securitization Bonds”)
will not constitute a Default or Event of Default hereunder or under any
Sub-Loan Agreement or other Sub-Loan Documents and a Default or Event of
Default under any Sub-Loan Agreement or other Sub-Loan Documents will not
constitute a default under any of the Securitization Bonds.

26

          7.3.          Sub-Loan
Guaranty. With respect to any Sub-Loan, the lien free Completion of the
Work with respect to any Sub-Loan Collateral in an Applicable Resort for which
Lender has or will make Construction Advances, and the prompt payment and
performance of all Obligations shall be unconditionally and irrevocably
guaranteed by Guarantor. 

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

          7.5.          Location
of Sub-Loan Collateral. Borrower agrees that all tangible Sub-Loan
Collateral which is not delivered to Lender pursuant to this Agreement or any
Sub-Loan Agreement or Sub-Loan Documents will remain, at all times, at
Borrower’s business location at the Applicable Resort or at Borrower’s
principal place of business, and Borrower may not transfer such Sub-Loan
Collateral from such premises other than in connection with the ordinary course
of business without the prior written approval of Lender. 

          7.6.          Insurance
and Protection of Collateral. Borrower agrees it and/or the Applicable
Association shall maintain and pay for insurance upon the Mortgaged Property as
contemplated by the Applicable Declaration as evidenced by the Agreement to
Provide Insurance during the construction of Work at the Applicable Phase or
Applicable Resort. 

SECTION 8. CONSTRUCTION
ADVANCE PROCEDURES. 

          8.1.          General.
Except as otherwise provided in the Sub-Loan Agreement, the funding of
Construction Advances shall be in accordance with such procedures as Lender may
require, including without limitation, disbursement through the Title Company
or an escrow agent acceptable to Lender if Lender so requires. 

          8.2.          Disbursement
Agent. In the event Lender is funding Construction Advances under an
Applicable Sub-Loan Agreement, a disbursement agent for each Sub-Loan
acceptable to Lender (the “Disbursement Agent”) shall be retained by
Lender 

27

at Borrower’s
reasonable cost and expense. The Disbursement Agent shall review and verify all
requests for Construction Advances and all other information required under Section
18 for a Construction Advance, any additional information required by the
applicable Sub-Loan Agreement and all other information deemed necessary by
Lender related to the progress of the Work. Lender and Borrower agree that the
Disbursement Agent at Lender’s request shall disburse Construction Advances
directly to Title Company, Contractor or Subcontractors. The Disbursement Agent
may be the Title Company or other person or entity acceptable to Lender or
Lender’s personnel. If Lender’s personnel act as Disbursement Agent, Borrower
shall still be responsible for all reasonable costs and expenses related thereto.

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

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

          8.5.    Retainage;
Conditions Precedent to Final Disbursements for Each Sub-Loan. Funds for
each Sub-Loan held by Lender as retainage for construction costs with respect
to such Sub-Loan shall be disbursed by Lender upon compliance with the
requirements set forth in this Subsection 8.5 and the requirements for
all other disbursements as set forth above and in any applicable Sub-Loan
Agreement (collectively, the “Retainage Disbursement Requirements”). The
Retainage Disbursement Requirements for the Work shall include: 

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

                    (b)          Final
Releases of Lien: Contractor’s Affidavit. Receipt by Lender of a
“Conditional Waiver and Release Upon Final Payment” executed by the Contractor 

28

and all
applicable Subcontractors performing work or supplying materials and paid for
by such retainage Advance in form and content acceptable to Lender and in
conformance with the Applicable Mechanics Lien Law, together with any and all
additional affidavits of all such parties sufficient in the opinion of Lender’s
counsel to comply with the Applicable Mechanics Lien Law, and to remove any and
all mechanics’ and materialmen’s liens (inchoate or otherwise) affecting title
to the Applicable Phase or Applicable Resort, which might arise related to such
work or materials. 

                    (c)          Certificates
of Completion. Certificates of Substantial Completion for the hard cost of
the Work utilizing customary AIA forms or the equivalent thereof signed by the
Architect, Contractor and Borrower with respect to each Sub-Loan. Borrower’s
certificate shall confirm that all furniture, fixtures and equipment which are
part of the Work funded by Lender have been delivered, installed and paid for
in full or the retainage for such furniture, fixtures and equipment which has
not been delivered, installed or fully paid for shall not be funded by Lender
until delivered, installed and fully paid for. 

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

                    (e)          As-Built
Plans. One set of one-half size (11x17) detailed as-built plans related to
the Work must be submitted to Lender promptly after such Work is completed, but
in no event later than two (2) months from the issuance of the Certificates of
Substantial Completion for the Work, which plans must be approved and
identified as such in writing by Borrower, the Architect, and the Contractor
with respect to each Sub-Loan, and must include plans for architectural,
structural, mechanical, plumbing, electrical and all site development
(including storm drainage, utility lines and landscaping) work. 

                    (f)          As-Built
Survey. As to the final Advance with respect to any Sub-Loan in which
Lender has funded Construction Advances, receipt by Lender of one original set
of one-half size (11x17) satisfactory As-Built Survey prepared by a licensed
surveyor satisfactory to Lender and the Title Company, in accordance with the
plans and showing all of the applicable Units and each applicable building in
place, including, without limitation, striping of parking areas, a statement as
to the number of parking spaces and such other matters as Lender shall require
(“As-Built Survey”). The survey shall be prepared in accordance with the
Standards set forth by ALTA/ACSM 1988 Minimum Survey Requirements, shall be
certified to Lender and the Title Company and shall include a narrative metes
and bounds or platted description of the boundaries of the Mortgaged Property,
the area of the Mortgaged Property and of each of the applicable Units and
buildings (then completed) and the location and dimensions of all easements and
improvements. The surveyor must include on the As-Built Survey a signed
statement certifying the existence or a narrative statement certifying the
existence or nonexistence of any encroachment from or onto the Mortgaged
Property 

29

and must
include the date of the As-Built Survey and the surveyor’s registration number
and seal and such other matters as the Title Company may require, in form and
substance satisfactory to Lender and the Title Company. 

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

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

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

          8.7.    Advances
Do Not Constitute a Waiver. No Sub-Loan Advance for construction purposes
shall constitute a waiver of any condition of Lender’s obligation to make
further Sub-Loan Advances for construction purposes. 

SECTION 9. REPRESENTATIONS
AND WARRANTIES. 

          As
an inducement to Lender to advance funds to any Borrower under any Sub-Loan
Agreement, Borrower (and each Borrower under any Sub-Loan Agreement) and
Guarantor hereby, jointly and severally, represent and warrant to Lender as
follows as 

30

of the date
hereof and as of any Sub-Loan Closing Date (unless as otherwise expressly set
forth in the Applicable Sub-Loan Agreement). 

          9.1.    Organization;
Power. 

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

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

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

                    (d)          Manager.
Manager is a corporation, duly incorporated, validly existing and in good
standing under the laws of the State of Delaware, duly licensed in any
Applicable Jurisdiction as required, and having full power and lawful authority
to act as the Manager of the Applicable Resort, to perform its obligations
under the 

31

Management
Agreement and to carry on its business as now being conducted and as proposed
to be conducted. 

          9.2.          Authorization;
No Legal Restrictions; No Breach of Other Agreements. The execution,
delivery and performance by Borrower of this Agreement, any Sub-Loan Agreement
and the other Sub-Loan Documents has been duly authorized by all necessary
corporate action by Borrower and does not and will not: (i) violate any
provision of the Governing Documents of Borrower, or any agreement, law, rule,
regulation, order, writ, judgment, injunction, decree, determination or award
presently in effect to which Borrower is a party or is subject; (ii) result in,
or require the creation or imposition of any Lien upon or with respect to any
asset of Borrower other than Liens in favor of Lender; or (iii) result in a
breach of or constitute a default by Borrower under, any indenture, loan or
credit agreement or any other agreement, document, instrument or certificate to
which Borrower is a party or by which it or any of its assets are bound or
affected. 

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

          9.4.          Enforceability.
This Agreement, the Applicable Sub-Loan Agreement and the other Sub-Loan
Documents constitute legal, valid and binding obligations of Borrower,
enforceable against Borrower in accordance with their respective terms. 

          9.5.          Title.
Borrower has and will have good and marketable title to the Sub-Loan
Collateral, free and clear of any Lien, security interest, charge or encumbrance
except for the Liens created by this Agreement, any Sub-Loan Agreement or any
Sub-Loan Document or otherwise created in favor of Lender, subject to the
applicable Permitted Liens and Encumbrances. Borrower has good and marketable
title to the Units and Timeshare Interests comprising a portion of the
Mortgaged Property, and all rights, properties and benefits appurtenant to or
benefiting them, subject to the Permitted Liens and Encumbrances and the
Applicable Timeshare Documents established by Borrower, subject to Lender’s
approval. 

          9.6.          Liens.
The execution and delivery of the Sub-Loan Documents, the filing of the
applicable UCC-1 Financing Statements with the applicable Secretary of State’s
or other recording office and the recording of the applicable Sub-Loan
Mortgage, the applicable Assignment of Property Rights and a UCC-1 Financing
Statement in the public records of the Applicable Jurisdiction will constitute
in favor of Lender a valid and perfected continuing first-priority Lien and
security interest in the Sub-Loan Collateral. Lender is not and shall not be
required to take, and Borrower has taken any and all required steps to protect
Lender’s Liens and security interests in the Sub-Loan Collateral and Lender is
not and shall not be required to collect or realize upon the Sub-

32

Loan
Collateral or any distribution of interest or principal, nor shall loss of or
damage to, the Sub-Loan Collateral release Borrower or Guarantor from any of
the Obligations. 

          9.7.          Financial
Statements and Financial Condition. The financial statements of Obligors
fairly present the respective financial conditions and results of operations of
Borrower and Guarantor as of the date or dates thereof and for the periods
covered thereby. There were no material liabilities, direct or indirect, fixed
or contingent, of Borrower or Guarantor as of the dates of such financial
statements which were not reflected therein or in the notes thereto, which have
not otherwise been disclosed to Lender in writing or otherwise set forth in
Guarantor’s SEC filings. Except for any such changes heretofore expressly
disclosed in writing to Lender, there has been no material adverse change in
the respective financial conditions of Borrower or Guarantor from the financial
conditions shown in their respective financial statements, nor has Borrower or
Guarantor incurred any material liabilities, direct or indirect, fixed or
contingent, which are not shown in their respective financial statements or
reflected in the notes thereto. 

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

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

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

33

          To
the extent that the Applicable Association holds insufficient funds to pay any
real estate taxes for the Mortgaged Property and Sub-Loan Collateral then due
and payable, Borrower (during the time it is maintaining direct or indirect
control of the Applicable Association) will pay the amount of such deficiency
to the Applicable Association to enable the Applicable Association to pay all
real estate taxes related to the Mortgaged Property and Sub-Loan Collateral
when due and prior to the incurrence of any penalties. Borrower will comply
with the above-described procedures and will not amend, modify or terminate
such procedures without the prior written consent of Lender. 

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

          9.10.        Litigation
Proceedings, Etc. Except as described on Schedule 9.10 attached hereto or
as updated from time to time in any exhibit or schedule to any Applicable
Sub-Loan Agreement, (1) there are no actions, suits, proceedings, orders or
injunctions pending or threatened against or affecting Borrower, the Guarantor,
the Mortgaged Property, the Sub-Loan Collateral or the Applicable Association
at law or in equity, or before or by any governmental authority or other tribunal
which if adversely determined would have a material adverse effect on their
ability to perform hereunder with respect to the Applicable Resort, and (2)
Borrower has not received any notice from any court, governmental authority or
other tribunal alleging that Borrower or the Applicable Resort has violated the
Legal Requirements, agreements or arrangements in a manner which would have a
Material Adverse Effect on Borrower’s or Guarantor’s ability to perform its
Obligations hereunder or under any Sub-Loan Agreement or Sub-Loan Documents. 

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

34

          9.12.          Environmental
Matters. The Mortgaged Property and to the best of Borrower’s knowledge,
the Applicable Resort does not and will not contain any Hazardous Materials,
except for certain Hazardous Materials used in the operation of Borrower’s
business which are properly stored and maintained. No Hazardous Materials are
or will be used or stored at or transported to or from the Applicable Resort,
except for certain Hazardous Materials used in the operation of Borrower’s
business which are properly stored and maintained. Neither Borrower, Manager
nor to Borrower’s knowledge the Applicable Association has ever used all or any
portion of the Applicable Resort as a facility for the storage, treatment or
disposition of any Hazardous Materials or has received notice from any
governmental agency, entity or other Person with regard to Hazardous Materials
on, under or affecting all or any portion of the Applicable Resort. Neither Borrower
as to the Mortgaged Property nor to the best of Borrower’s knowledge the
Applicable Resort, nor any portion thereof, nor the Applicable Association, are
in violation of any Environmental Laws. 

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

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

          9.15.          No
Defaults. No Incipient Default or Event of Default exists as of the Closing
Date or any Sub-Loan Closing Date, and there is no violation in any material
respect of any term of any agreement, bylaw or other instrument to which
Borrower is a party or by which it may be bound which violation materially and
adversely affects Borrower’s ability to repay any Sub-Loan. 

35

          9.16.          Compliance
with Law. 

                             (a)
          Borrower is not in
violation, nor is the Mortgaged Property or any Sub-Loan Collateral, or the
business operations in respect of the Mortgaged Property or Sub-Loan
Collateral, or to Borrower’s knowledge after diligent inquiry, the Applicable
Association, in violation of any Legal Requirements, which violation materially
and adversely affects the Borrower, the Mortgaged Property, the business
operations of the Mortgaged Property, Sub-Loan Collateral or the Applicable
Association. 

                             (b)
          As to any
Applicable Phase or Applicable Resort, Borrower has not failed as to its
Property, nor, to the best of Borrower’s knowledge, has the Applicable Resort
or Applicable Association failed, to obtain any consents or joinders, or any
approvals, licenses, permits, franchises or other governmental authorizations,
or to make or cause to be made any filings, submissions, registrations or
declarations with any government or agency or department thereof necessary to
the establishment, ownership or operation of the Mortgaged Property or any of
Borrower’s other assets, or to the conduct of Borrower’s business, which
violation or failure to obtain or register materially and adversely affects
Borrower, the Sub-Loan Collateral or the business, prospects, profits,
properties or condition (financial or otherwise) of Borrower or the Sub-Loan
Collateral. 

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

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

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

36

          9.19.          

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

          9.20.      
    Labor
Relations. Except as disclosed in the Sub-Loan Agreement, the employees of
Borrower for the Applicable Resort are not a party to any collective bargaining
agreement with Borrower, and, to the best knowledge of Borrower, with respect
to the Applicable Resort, there are no material grievances, disputes or
controversies with any union or any other organization of Borrower’s employees,
or threats of strikes, work stoppages or any asserted pending demands for
collective bargaining by any union or organization. 

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

	
 

	
 

	
 

	
Tax I.D.

	
 

	
State
 Organization Number

	

	
 

	

	
65-0433722

	
 

	
P9300051653

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

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

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

37

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

          9.26.          Restrictive
Contracts. None of Obligor, the Applicable Resort or the Applicable
Association is a party to any contract or agreement, or subject to any lien,
charge or restrictions, which materially and adversely affects its or their
business. No Obligor will be a party to any other contract or agreement which
prohibits its compliance with the terms of this Agreement, any Sub-Loan
Agreement or the other Sub-Loan Documents. No Obligor has agreed or consented
to cause or permit in the future (upon the happening of a contingency or
otherwise) any of the Sub-Loan Collateral, whether now owned or hereafter
acquired, to be subject to a Lien, except the Lien in favor of Lender other
than the applicable Permitted Liens and Encumbrances or new taxes or
Assessments imposed by Governmental Authority. 

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

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

38

SECTION 10. REPRESENTATIONS,
WARRANTIES AND COVENANTS WITH RESPECT TO THE APPLICABLE RESORT.  

          As
of the date of any Sub-Loan Closing Date, Obligors, jointly and severally, represent
and warrant to and covenant with Lender as follows, with respect to the
Sub-Loan Collateral and each Unit to be included in the applicable Mortgaged
Property and Sub-Loan Collateral with respect to any Sub-Loan: 

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

          10.2.          Compliance.
Obligors and the Sub-Loan Collateral are in compliance with and will comply in
all material respects with all Legal Requirements. 

          10.3.          Applicable
Declaration. On or before the first closing of a Timeshare Interest sale to
a Purchaser by Borrower in an Applicable Phase or Applicable Resort, all Units,
all material improvements as represented to Purchasers for such Applicable
Phase, all equipment, furnishings and appliances available for use in
connection therewith pertaining to such Timeshare Interest in such Applicable
Phase will have been and thereafter will continue to be duly submitted to the
provisions of the Applicable Declaration, as amended to include the Applicable
Phase(s) as part of the timeshare regime, which Applicable Declaration and any
amendment will have been recorded in the public records of the Applicable
Jurisdiction. Obligors will not amend the Applicable Declaration in any way
which would materially alter the Applicable Resort, the rights of Purchasers,
the rights of lenders foreclosing on a Timeshare Interest or any priority of
past due assessment claims over the lien of any mortgage encumbering a
Timeshare Interest without the prior written consent of Lender. Obligors shall
not require Lender’s written consent to amend the rules and regulations of any
Applicable Resort or the bylaws of the Applicable Association unless such
amendment is likely to materially and adversely affect Obligor’s ability to
repay the Obligations hereunder. 

          10.4.          Zoning
Laws, Building Codes, Etc. The Mortgaged Property, all the buildings and
other improvements in which the Units are situated and all Amenities will when
constructed be completed in all material respects in compliance with all
applicable zoning codes, building codes, health codes, fire and safety codes,
and other Legal Requirements. All material inspections, licenses and permits
required to be made or issued in respect of such buildings and Amenities will
be made or issued by the applicable Governmental Agency as are required to
approve such development at the time same is developed. The use and occupancy
of such buildings for their intended purposes is and will be lawful under all
Legal Requirements. On or before the date of closing under the Acquisition Documents
or the Applicable Completion Date, as applicable, final certificates of
occupancy or equivalent certificates from engineers, architects or such other
certificates as a local Governmental Agency may require, and if a local
Governmental Agency requires, will be issued and in effect for all Units in the
Applicable Phase or Applicable Resort. The timeshare use and occupancy of Units
does not and will not violate any private covenant or restriction or any
zoning, use or 

39

similar law,
ordinance or regulation affecting the use or occupancy of the Mortgaged
Property. 

          10.5.          Units
Ready for Use. All of the Units will be fully furnished and ready for use
by Owners by the date of closing under the Acquisition Documents or on or
before the Applicable Completion Date, as applicable. On or before the date of
closing under the Acquisition Documents or by Completion of Work for the
Applicable Resort, as applicable, unless provided otherwise in the Applicable
Sub-Loan Agreement, all Common Furnishings (including appliances) within such
Units are or will be owned by Borrower or the Applicable Association, have been
or will be fully paid for, and are and will be free and clear of any Liens or
other interests of any third party including any lessor. The Sub-Loan
Collateral is owned by Borrower free and clear of all liens and encumbrances,
except those in favor of Lender and the applicable Permitted Liens and
Encumbrances. 

          10.6.          Sub-Loan
Collateral Taxes and Fees. All real property taxes, and similar maintenance
fees, rents, assessments and like charges affecting any applicable Sub-Loan
Collateral have been fully paid to date, to the extent such items are due and
payable. 

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

          10.8.          Timeshare
Plan. Borrower shall amend the applicable Public Report and the Applicable
Declaration to add the Units which make up the Applicable Phase or Applicable
Resort upon their completion or promptly after the closing under the
Acquisition Documents. Further Borrower shall file with any applicable
Governmental Agency in the Applicable Jurisdiction the required documentation
for approval of the Applicable Phase or Applicable Resort as a timeshare
project. Borrower will provide a copy of the Public Report as required by the
Applicable Jurisdiction and all amendments and supplements thereto to Lender
and Lender’s counsel at the time it is finalized for distribution to
Purchasers. Unless provided otherwise in connection with the closing of a
Sub-Loan, Borrower will provide Lender and Lender’s counsel with copies of all
correspondence and other responses received from the applicable Governmental
Agency within fourteen (14) Business Days after receipt by Borrower or
Borrower’s counsel if such notice would materially affect the Applicable
Declaration or Applicable Resort or Borrower’s ability to repay any Sub-Loan.
On or before any applicable Sub-Loan Closing Date, the Applicable Phase or
Applicable Resort shall be established and dedicated as a timeshare plan and
project in full compliance with all Legal Requirements. On or before any
applicable Sub-Loan Closing Date, hereof, Borrower will deliver to Lender: 

                            
(a)          a
copy of the Applicable Declaration, as amended, to add the Applicable Phase to
the timeshare regime, as recorded in the public records of the 

40

Applicable
Jurisdiction; and a copy of the assignment of Declarant rights in favor of
Borrower as recorded in the public records of the Applicable Jurisdiction if
applicable; and 

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

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

          10.10.          Brokers.
All marketing and sales activities will be performed by independent
contractors, agents, representatives or employees of Borrower, all of whom are
and will be properly licensed in accordance with all Legal Requirements of
Borrower’s sales activities at the Applicable Jurisdiction. Borrower will
retain a duly licensed broker of record for the Applicable Resort to the extent
required by the Applicable Jurisdiction and will forward to Lender and Lender’s
counsel written evidence of such brokerage arrangement. 

          10.11.          Tangible
Property. The machinery, equipment, fixtures, tools and supplies used or to
be used in connection with the Applicable Resort, including without limitation,
with respect to the operation and maintenance of the Common Elements, will be
owned or leased either by Borrower, the Applicable Association, Contractor or
any Subcontractor. 

          10.12.          Condition
of Applicable Resort. The Mortgaged Property under any Sub-Loan is not as
of any applicable Sub-Loan Closing Date for such Mortgaged Property damaged or
injured in any material respect as a result of any fire, explosion, accident,
flood or other casualty unless such Mortgaged Property is then insured and
Borrower is then in compliance with the provisions of the Sub-Loan Documents
with regard to such casualty. 

          10.13.          Assessments
and Developer Subsidy. To the best of Borrower’s knowledge, the assessments
levied with respect to the Applicable Resort together with any subsidies to be
paid by Borrower or others are sufficient to cover all expenses of the
Applicable Association for the Applicable Resort. Each Owner of a Timeshare
Interest or Vacation Trust, Inc., a Florida corporation, in its capacity as
trustee under the Club’s Trust Agreement is a member of the Applicable
Association. The Applicable 

41

Association
has the power and authority to levy assessments to cover the expenses of the
Applicable Resort. Any Lien for unpaid assessments related to the Mortgaged
Property is subject to the Lien of Lender’s Sub-Loan Mortgage. 

          10.14.          Amenities.
All Amenities for the Applicable Resort are located on the Land or such use is
provided in offsite facilities which constitutes the Applicable Resort. 

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

          10.16.          Wetlands.
Except as disclosed to Lender in writing prior to the applicable Sub-Loan
Closing Date, none of the Mortgaged Property is located on any “wetlands” as
designated by the U.S. Army Corps Of Engineers. 

          10.17.          Mechanic’s
Lien Claims. With respect to any Sub-Loan at any time during the term of
the Applicable Sub-Loan Agreement (unless such a potential claim is disclosed
in such Sub-Loan Agreement and permitted by Lender), Borrower has not received
any written notice of a potential claim, from any contractor, laborer or
materialman in connection with any work, labor or materials furnished in
connection with the Applicable Phase or Applicable Resort under Applicable
Mechanics Lien Law. 

          10.18.          Applicable
Resort Contracts. The contract, agreements and arrangements listed and
described in any Applicable Sub-Loan Agreement for amounts to be performed
after the date hereof exceeds $100,000, comprise all of the material
agreements, or arrangements relating to the operation, management, marketing,
sales and maintenance and of the Mortgaged Property for each Applicable Resort.
Subject to the terms of Section 12.23 and Section 14.2, all of the Applicable
Resort Contracts are and shall (unless Lender shall otherwise consent in
advance in writing) remain unmodified and free and clear of any lien or
encumbrance. 

          10.19.          Intentionally
Omitted. 

          10.20.          Site
Plan Approval. Borrower represents that with respect to any Acquired Assets
or the construction of new Units or improvements in connection with any
Sub-Loan that the Applicable Jurisdiction has approved the Site Plan for
development of the Units consisting of the Applicable Phase or Applicable
Resort pursuant to the terms of the Applicable Sub-Loan Agreement to the extent
required under Legal Requirements (“Site Plan”) unless otherwise provided in
the Sub-Loan Agreement. The approved Site Plan shall be attached as exhibit or
schedule to the Applicable Sub-Loan Agreement. Any material deviation from the
Site Plan will require written consent of Lender. 

          10.21.          Club
Plan. The Club has been established and to Borrower’s actual knowledge
there are no existing material violations of the applicable Legal Requirements
in connection with all of the Borrower’s accommodations, facilities and resorts
which comprise the Club and Borrower shall use its best efforts to cause the
foregoing to remain in full compliance in all material respects with all Legal
Requirements. Borrower shall use its best efforts to cause the Club to remain a
multi-

42

site timeshare
plan registered under applicable state registration laws and in full compliance
with the Club Documents. 

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

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

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

SECTION 11. CONSTRUCTION
REPRESENTATIONS, WARRANTIES AND COVENANTS. 

          As
of any applicable Sub-Closing Date, Obligors, jointly and severally, represent
and warrant to and covenant with Lender as follows with respect to any Sub-Loan
pursuant to which Lender has agreed to make Construction Advances: 

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

          11.2.            Sub-Loan
Cost Certificate. Attached as an exhibit or schedule to the Applicable
Sub-Loan Agreement is a line item breakdown for the Applicable Phase or
Applicable Resort (the “ Sub-Loan Cost Certificate”) setting forth the cost of
each class of work included in the Work and all incidental costs related to the
Work, specifying which items are to be funded from the Sub-Loan and which items
are to be funded from 

43

other sources.
The Sub-Loan Cost Certificate shall constitute a budget based upon which
Construction Advances shall be made for each of the applicable line items. The
Sub-Loan Cost Certificate shall include a line item of at least five percent
(5%) of the total budgeted amount for Work (from the Sub-Loan) for
contingencies which may only be disbursed with the prior written consent of
Lender, based on a percentage completion of the total costs, which consent
shall not be unreasonably withheld, provided the request is less than or equal
to the percentage required for disbursement of the contingency. Notwithstanding
the foregoing and subsequent to the Sub-Loan Closing Date, up to $50,000 of the
total amount budgeted for contingences for Work may be disbursed without
Lender’s consent but shall be disclosed on a revised Sub-Loan Cost Certificate.
The Sub-Loan Cost Certificate as attached to any Sub-Loan Agreement is accurate
and complete as of the date provided to Lender. If Borrower determines that the
Sub-Loan Cost Certificate needs to be revised for any reason, including delays
in construction, Borrower will immediately notify Lender of the requested
change. No change to the Sub-Loan Cost Certificate shall be effective without
the prior written consent of Lender. Borrower shall prepare a Sub-Loan Cost
Certificate for each Sub-Loan. The Sub-Loan Cost Certificate shall be
accompanied by the Applicable Approved Construction Schedule which reflects a
timetable and schedule for completion of the Work required for Applicable Phase
or Applicable Resort. 

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

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

44

                    (b)          A
provision that (i) no change order involving an increase or decrease in the
cost of the Work of more than one-percent (1%) for any one change order or
five-percent (5%) in the aggregate with all other change orders (except as
approved prior to the Sub-Loan Closing Date), and (ii) no change order
subsequent to the Sub-Loan Closing Date which involves any material change in
the architectural, mechanical or structural design of any portion of the Work
or any material change in the quality of workmanship or materials or any delay
in completion of the Work beyond the Applicable Completion Date, shall be
effective without in all cases the prior written notification to Lender and the
prior written consent of Lender. Any cost saving in a line item of the Sub-Loan
Cost Certificate may not be automatically applied to any line item which is in
excess of the budgeted amount for that line item. 

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

                    (d)          A
provision that the Contractor shall comply with the requirements of the Title
Company necessary to date-down the Title Policy, free and clear of the claims
of Subcontractors, mechanics and materialmen. 

                    (e)          A
provision that there will be no amendment, modification, waiver or other
material change to the Construction Contract without the prior written consent
of Lender; for purposes hereof, “material” shall mean any action which would
cause an increase of more than 5% to the Applicable Approved Construction
Budget or a termination of the Construction Contract. 

                    (f)          The
consent and agreement of the Contractor in form and content acceptable to
Lender including a provision that, upon the occurrence of an Event of Default
hereunder or any Sub-Loan Agreement or other Sub-Loan Documents or upon the
occurrence of a default by Borrower under the Construction Contract, Contractor
will, at the request of Lender, continue performance pursuant to the
Construction Contract until completion of the Work. 

                    (g)          A
provision for retainage equal to 10% holdback from each Construction Advance as
set forth in the applicable Sub-Loan Cost Certificate other than as provided in
Section 8.5, which retainage shall be released in the manner set forth in
Section 8.5 of this Agreement or as set forth in the Sub-Loan Agreement.  

                    (h)          A
provision that prior to any progress payment for any portion of construction of
any Work being funded by Lender in any Applicable Phase or Applicable Resort,
the Contractor shall deliver to Borrower for itself and each Subcontractor a
conditional waiver and release upon progress payment (in arrears) in
conformance with Applicable Mechanics Lien Law, a copy of which shall be
provided to Inspector to be followed by an unconditional waiver at the time of
the next Request for Advance for the Applicable Sub-Loan. 

45

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

          11.5. Sub-Loan Subcontracts. Each contract (each a “Sub-Loan Subcontract”)
which has been executed by and between Borrower or the Contractor and each
subcontractor, materialman and supplier who is to provide labor or materials at
a value equal to or in excess of two and one-half percent (2.5%) necessary to
achieve completion of the Work (each a “Subcontractor”) shall contain
(a) the agreement of the Subcontractor to perform the Sub-Loan Subcontract for
Lender following the occurrence of an Event of Default hereunder or under the
Applicable Sub-Loan Agreement, (b) a provision that the Subcontractor shall
comply with the provisions of the Applicable Mechanic’s Lien Law, (c) a
provision for a ten percent (10%) retainage, to be released as set forth in Section
8.5 of this Agreement or as set forth in the Sub-Loan Agreement, (d) a
provision that prior to final payment to the Subcontractor, the Subcontractor shall
deliver to Borrower and Lender a final release of liens signed by the
Subcontractor, and (e) a provision that there will be no termination,
amendment, waiver or material change of the Sub-Loan Subcontract subsequent to
the Sub-Loan Closing Date without the prior written consent of Lender. If
requested by Lender, Borrower shall furnish statements from each Subcontractor
and supplier of labor or materials, stating the amount of its contract and the
amount paid to date, and acknowledging full payment (less retainage for all
work done and/or materials supplied to date). Subsequent to the Sub-Loan
Closing Date, Borrower shall not: (i) permit any material default by Borrower
under the terms of the Subcontracts; (ii) waive any of Subcontractors’
obligations thereunder; (iii) do any act which would relieve any of the
Subcontractors of their respective obligations to complete the Work according
to the Specifications; (iv) or make any amendments, other than change orders
permitted hereunder or as Lender may approve in writing, to any of the Sub-Loan
Subcontracts without Lender’s prior written consent. Borrower shall cause
Contractor in connection with each Sub-Loan to prepare and maintain a list of
all Subcontractors whose contracts with the Contractor each have a value equal
to or in excess of two and one-half percent (2.5%) for Work, together with
copies of their contracts, and showing the name, address and telephone number
of each Subcontractor, the work or material performed or supplied by each
Subcontractor, and the total amount of each contract and Sub-Loan Subcontract
and amounts paid

46

through the
date upon which such list was completed, and shall keep the list current until
each of the Applicable Phases or Applicable Resort have been completed.
Borrower shall cause Contractor to provide to Lender and Inspector such current
list on a quarterly basis or more frequently if reasonably requested. All
Sub-Loan Subcontracts entered into by Contractor or directly by Borrower shall
cover completion of all of the Work for the Applicable Phase or Applicable
Resort. Upon the occurrence of an Event of Default which is continuing, Lender
shall have the right, in its sole discretion, to approve in writing the
identity of all Subcontractors that provide or are contemplated to provide
labor and/or materials in connection with the development and construction of
the Applicable Phase or Applicable Resort, each of whom has entered into a
contract with the Contractor. 

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

          11.7.
Permits. All renovation or building permits required for the Work at the
Applicable Phase or Applicable Resort, will be properly obtained and will be
obtained prior to commencing such Work. All other licenses, permits and approvals
required for the Work at Applicable Phase will be properly obtained prior to
commencing the Work. 

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

47

          11.9.
Zoning and Land Use. The Applicable Resort is located in a zone, under which
timeshare is an allowed use in the Applicable Jurisdiction. 

          11.10.
Additional Equity. Lender reserves the right to require, at any time and from
time to time, at Borrower’s expense, a construction cost analysis by the
Inspector or by an expert in the construction cost field designated by Lender.
If Lender reasonably estimates, at any time and from time to time, that the
amount necessary to assure final Completion of the Work for the Applicable
Phase or Applicable Resort, including but not limited to, interest and other
soft or non-construction budget items (the “Applicable Approved Construction
Budget”) shall exceed the amount of the (a) remaining Advances under the
Applicable Sub-Loan which are to be used to fund Sub-Loan Approved Costs for
the Work, plus (b) the total amount of all equity investments made or scheduled
to be made by Borrower or Guarantor in connection with the Work for such
Applicable Phase or Applicable Resort, then Borrower, at the request of Lender,
shall (i) immediately deposit with Lender, to be held by Lender in a
non-interest bearing, non-escrow account, the amount of any such difference, in
cash, which amount shall be disbursed toward Applicable Approved Construction
Budget costs prior to any further advance by Lender under the Sub-Loan, (ii)
provide other financial assurances acceptable to Lender that additional
construction funds will be available to Borrower and Guarantor to fund
Completion of the Work, or (iii) pay from other sources the amount of any such
difference for items included in the Applicable Approved Construction Budget
with satisfactory evidence of such expenditure being provided to Lender prior
to any further Advances under the Sub-Loan. Lender shall be assured at all
times, to its satisfaction, that the estimated Advances to be made under the
Sub-Loan which are to be used to fund Sub-Loan Approved Costs for the Work are
sufficient to complete the Work for the Applicable Phase or Applicable Resort
in accordance with the Applicable Approved Construction Budget, the applicable
Specifications and the Sub-Loan Agreement. Obligors hereby agree that payment
for any cost overruns related to the Work shall be the sole responsibility of
Obligors. Lender reserves the right of continual verification of adequate equity
investments made by Borrower as required in this Section. 

          11.11.
No Developer’s Fee. The Applicable Approved Construction Budget does not
include, directly or indirectly, any developer’s fee and the line item
identified as “construction overhead” shall be used for actual out-of-pocket
costs and expenses of Borrower and shall not include any hidden fee or
developer’s profit. 

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

48

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

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

          11.15. Construction
Tests. If requested by Lender, Borrower shall furnish to Lender in
connection with any Sub-Loan, (a) all field tests and laboratory tests
performed by local building departments or any independent parties, complete
construction schedules, certificates, plans and specifications, appraisals,
title insurance and other insurance, reports and agreements, (b) the names of
all persons with whom Borrower has contracted or intends to contract for the
Work or the furnishing of labor or materials therefor, (c) copies and/or lists
of all paid and/or unpaid bills for labor and materials with respect to the
Work; and (d) construction budgets of Borrower and revisions thereof showing
the estimated cost of completion of the Work and the total funds required at
any given time to complete and pay for such construction. 

          11.16. Substantial
Completion. At the time the Work with respect to any Mortgaged Property is
deemed by Borrower, Inspector and the applicable Governmental Agency to be
substantially complete (“Substantial Completion”), Borrower shall deliver to
Lender the following with respect to such Work: 

                    (a)          Permits.
A copy of the final permits and approvals necessary or required from all
authorities whose approval is required for the lawful use, occupancy and
operation of any Units or buildings in the Applicable Phase or Applicable
Resort covered by such Work. 

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

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

49

                    (d)          As-Built
Survey. As to the final Advance under any Sub-Loan, receipt by Lender of
one original set of one-half size (11x17) satisfactory As-Built Survey for the
Applicable Phase or Applicable Resort. 

                    (e)          As-Built
Plans. One original set of one-half size (11x17) detailed as-built plans
must be submitted to Lender promptly after they are completed but in no event
later than two (2) months following the issuance of the certificate(s) of
occupancy (or the equivalent) with respect to the Applicable Phase or
Applicable Resort. 

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

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

          11.17.
Intentionally Omitted. 

          11.18.
Notice of Completion. As soon as practicable, but no later than ten (10)
days after Completion of the Work with respect to any Sub-Loan, Borrower shall
record or cause to be recorded in the public records of the Applicable
Jurisdiction, a “Notice of Completion” pursuant to the Applicable Mechanic’s
Lien Law (if required by such lien law) and shall forward to Lender and
Lender’s counsel evidence of such recordation. 

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

          11.20.
Bonding Requirements. In the event, Borrower and Lender agree with
respect to any Sub-Loan in which Lender is making Construction Advances,
Borrower shall provide to Lender prior to the initial Construction Advance
thereunder (excluding soft costs): (a) a payment bond or bonds, issued by a
surety satisfactory to Lender and in a form satisfactory to Lender for the aggregate
amount of the Work and adequate to cause all persons providing labor,
materials, equipment or services with respect thereto to look solely to such
bond or bonds, rather than the Project or the Collateral, in the event of
nonpayment, and naming Lender as co-obligee, and (b) a performance bond or
bonds, issued by a surety satisfactory to Lender and in a form satisfactory to
Lender, covering each Construction Contract and, as required by Lender, any or
all Subcontracts relating to the Work, and naming Lender as co-obligee. 

          11.21.
Force Majeure. The Applicable Completion Date and the time for
performance by Borrower of any of its construction-related obligations under
the Sub-Loan Documents prior to the Applicable Completion Date (excluding any
obligations for payments of money, taxes or insurance premiums) may be extended
for the period of time during which such performance is delayed or hindered by
reason of the occurrence

50

of an event of
Force Majeure. “Force Majeure” shall mean any delay or hindrance caused by any
events or causes beyond Borrower’s reasonable control, including, without
limitation, fire, flood, earthquake, casualty, inclement weather, other acts of
God, acts of a public enemy including terrorism, riot, insurrection, governmental
regulation of the sale of materials or supplies or the transportation thereof,
lack of transportation, strikes or boycotts, temporary restraining orders for
injunctions prohibiting or restraining all or any portion of the Work if
initiated by a third party and not reasonably preventable by Borrower,
governmental actions and shortages of material or labor. 

          11.22.
Lien Waivers. Borrower shall provide an indemnity and/or lien waivers or
releases from any party with a right to file a lien against the Applicable
Phase or Applicable Resort in connection with the Work as the Title Company may
require with respect to insuring (and continuing to insure) the first Lien
priority of the applicable Sub-Loan Mortgage without and except for any mechanic’s
or materialmen’s liens. 

          11.23.
Specifications. One (1) half-size (11x17) set of the approved Site Plan
and the complete and detailed Specifications which Borrower shall have approved
in writing and which shall be satisfactory to Lender and Inspector, in their
sole discretion, including any changes or modifications thereto and including
Specifications for architectural, structural, mechanical, plumbing, electrical
work. All Specifications must be stamped with all required approvals from all Governmental
Agencies, certified under seal by Architect and signed by Borrower and
Contractor to be true copies of the Specifications architecturally and
structurally approved by all authorities and agencies having jurisdiction
thereover. They must also incorporate the recommendations made in the soil
testing report, if any. No material change shall be made thereafter in the
Specifications without the prior written consent of Lender. 

SECTION 12. GENERAL AFFIRMATIVE COVENANTS. 

          As
of the date hereof and as of any Sub-Loan Closing Date, Obligors covenant and
agree with Lender as follows in connection with any Sub-Loan: 

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

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

51

agency. To the
extent the Borrower under any Sub-Loan shall have a different address such
address shall be referenced in the Applicable Sub-Loan Agreement. 

          12.3.
Maintenance of Existence, Qualification and Assets. The applicable
Borrower shall at all times (i) maintain its legal existence, (ii) maintain its
qualification to transact business and good standing in the Applicable
Jurisdiction where it conducts business in connection with the Applicable
Resort, and (iii) comply or cause compliance in all material respects with all
Legal Requirements applicable to the Applicable Resort, Borrower, the Sub-Loan
Collateral or its business, including, without limitation, all Legal
Requirements as they relate to the Applicable Phase or Applicable Resort. 

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

          12.5.
Maintenance of Insurance. Borrower shall comply with the terms and
conditions of any applicable Agreement to Provide Insurance with respect to any
Sub-Loan. 

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

          12.7.
Payment of Taxes and Claims. Borrower will pay when due, during the time
Borrower maintains direct or indirect control of the Applicable Association,
all taxes imposed upon the Applicable Resort, the Sub-Loan Collateral,
Borrower, or any of its property, or with respect to any of its franchises,
businesses, income or profits, or with respect to any Sub-Loan or any of the Sub-Loan
Documents and all other charges and assessments against Borrower, the Sub-Loan
Collateral and the Applicable Resort which Borrower is legally obligated to pay
and if it controls such Applicable Association shall cause or if it does not
control the Applicable Association shall use its best efforts to cause the
Applicable Association to pay when due, all taxes imposed upon the Applicable
Resort, the Sub-Loan Collateral, the Applicable Association, or any of its 

52

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

          12.8.
Inspections. Subject to scheduling a reasonably convenient date and time
for both parties, Borrower shall, at any time and from time to time and at the
expense of Borrower, permit Lender or its agents or representatives (including
the Inspector) to inspect the Mortgaged Property, the Sub-Loan Collateral and
Borrower’s assets or property, and to examine and make copies of and abstracts
from its and, to the extent it has access thereto or possession thereof, the
Applicable Association’s, books, accounts, records, original correspondence,
computer tapes, disks, software, and other papers as it may desire to the
extent permitted to do so; and to discuss its affairs, finances and accounts
with any of its officers, certain designated employees, Affiliates, Contractors
or independent public accountants (and by this provision Borrower authorize
said accountants to discuss with Lender, its agents or representatives, the
affairs, finances and accounts of Borrower). With the exception of the
Construction Component of any Sub-Loan which will require multiple inspections
during the construction period, all audits and inspections which shall not be
more than one time per year unless and until an Event of Default has occurred
and is continuing hereunder or under any Applicable Sub-Loan Agreement or
Sub-Loan Documents (including without limitation, those occurring before and
after the Closing Date or any applicable Sub-Loan Closing Date) shall be at
Borrower’s expense, including all reasonable travel expenses of Lender’s
employees. 

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

53

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

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

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

          12.13.
Registration Compliance. Borrower will maintain, or cause to be
maintained, all necessary registrations, current filings, consents, franchises,
approvals, and exemption certificates, and Borrower will make or pay, or cause
to be made or paid, all registrations, declarations or fees with any applicable
Governmental Agency, in any Applicable Jurisdiction which may be required in
connection with the Mortgaged Property and Sub-Loan Collateral and the
occupancy, use and operation thereof, the incorporation of Units into the
timeshare plan established pursuant to the Applicable Declaration and the
Applicable Timeshare Documents, the Club Documents, and the sale, advertising,
marketing, and offering for sale of Timeshare Interests to the extent same is
within the control of Borrower. All such registrations, filings and reports
will be truthfully completed, if completed by Borrower or its Affiliates; and
true and complete copies of such registrations, applications, consents,
licenses, permits, franchises, approvals, exemption certificates, filings and
reports will be delivered to Lender. Borrower shall advise Lender of any
material changes with respect to their sales programs for the Applicable
Resort. 

          12.14.
Other Compliance. Borrower will comply in all material respects with all
Legal Requirements applicable to Borrower, including to the extent applicable,
but not limited to: any applicable timeshare acts, condominium acts, the
Consumer Credit Protection Act; Regulation Z of the Federal Reserve Board; the
Equal Credit Opportunity Act; Regulation B of the Federal Reserve Board; the
Federal Trade Commission’s 3-day cooling-off Rule for Door-to-Door Sales; ILSA;
Section 5 of the Federal Trade Commission Act; the Gramm-Leach-Bliley Act;
federal postal laws; applicable state and federal securities laws; applicable
usury laws; applicable trade practices, home and telephone solicitation,
sweepstakes, anti-lottery and consumer credit and protection laws; applicable
real estate sales licensing, disclosure, reporting 

54

and escrow
laws; the ADA; RESPA (if applicable); all amendments to and rules and
regulations promulgated under the foregoing acts or laws; and other applicable
federal statutes and the rules and regulations promulgated thereunder; and any
state law or law of any state (and the rules and regulations promulgated
thereunder) relating to ownership, establishment or operation of the Mortgaged
Property and Sub-Loan Collateral, or the sale, offering for sale, or financing
of Timeshare Interests. 

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

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

          12.17.
Sub-Loan Costs. Borrower agrees to pay all existing and future Sub-Loan
Costs. The provisions of this Section shall survive repayment of the
Obligations or termination of this Agreement and any applicable Sub-Loan
Agreement. 

          12.18.
Indemnification of Lender. In addition to (and not in lieu of) any other
provisions of any Sub-Loan Document providing for indemnification in favor of
Lender, Borrower, in connection with this Agreement and any Sub-Loan Agreement,
agrees to defend, indemnify and hold harmless Lender and its participants and
their subsidiaries, affiliates, officers, directors, agents, employees, representatives,
consultants, contractors, servants, and attorneys, as well as the respective
heirs, personal representatives, successors or assigns of any or all of them
(hereafter collectively the “Indemnified Lender Parties”), from and against,
and promptly pay on demand or reimburse each of them with respect to, any and
all liabilities, claims, demands, losses, damages, costs and expenses
(including without limitation, reasonable attorneys’ and paralegals’ fees and
costs), actions or causes of action of any and every kind or nature whatsoever
asserted against or incurred by any of them by reason of or arising out of or
in any way related or attributable to: (a) any failure or alleged failure of
Borrower to perform any of its covenants or obligations with respect to the
Mortgaged Property or Sub-Loan Collateral; (b) the development of the Mortgaged
Property to the extent financed by a Sub-Loan; (c) the debtor-creditor
relationships between Borrower on the one hand, and the Purchasers or Lender or
its participants, as the case may be, on the other; (d) the operation of the
Mortgaged Property or sale of Timeshare Interests that are part of the Sub-Loan
Collateral; (e) Borrower’s performance under or related to this 

55

Agreement, any
Sub-Loan Agreement, the Sub-Loan Documents or the Sub-Loan Collateral; (f) the
transactions contemplated under any of the Sub-Loan Documents or any of the
Applicable Timeshare Documents or Club Documents to be performed by Borrower,
including without limitation, those in any way relating to or arising out of
the violation of any Legal Requirements, including any condominium act or
timeshare act; (g) any breach of any covenant or agreement or the incorrectness
or inaccuracy of any representation and warranty of Borrower contained in this
Agreement, any Sub-Loan Agreement or any of the Sub-Loan Documents (including
without limitation any certification of Borrower delivered to Lender); (h) any
and all taxes, including real estate, personal property, sales, mortgage,
excise, intangible or transfer taxes, and any and all fees or charges to be
paid by Borrower including, without limitation under the applicable timeshare
act, which may at any time arise or become due prior to the payment, performance
and discharge in full of the Obligations; (i) the breach of any representation
or warranty of Borrower as set forth herein regarding any Environmental Laws;
(j) the failure of Borrower to perform any obligation or covenant herein
required to be performed pursuant to any Environmental Laws; (k) the use,
generation, storage, release, threatened release, discharge, disposal or
presence on, under or about the Mortgaged Property of any Hazardous Materials;
(l) the removal or remediation of any Hazardous Materials from the Mortgaged
Property required to be performed pursuant to any Environmental Laws or as a
result of recommendations of any environmental consultant or as required by
Lender; (m) claims asserted by any Person (including without limitation any
governmental or quasi-governmental agency, commission, department,
instrumentality or body, court, arbitrator or administrative board
(collectively, a “Governmental Agency”), in connection with or any in
any way arising out of the presence, use, storage, disposal, generation,
transportation, release, or treatment of any Hazardous Materials on, in, under
or affecting the Mortgaged Property; (n) the violation or claimed violation of
any Environmental Laws in regard to the Mortgaged Property; (o) the preparation
of an environmental audit or report on the Mortgaged Property, whether
conducted by Lender, Borrower, or a third-party, or the implementation of
environmental audit recommendations or (p) any broker fees or commissions or
similar compensation. Such indemnification shall not give Borrower any right to
participate in the selection of counsel for Lender or the conduct or settlement
of any dispute or proceeding for which indemnification may be claimed. Lender
agrees to give Borrower written notice of the assertion of any claim or the
commencement of any action or lawsuit described in this Section. 

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

56

          12.19.
Use of Borrower’s Names. Lender may use the name of Borrower and the
Applicable Resort, to the extent permitted by the owner of such name, in any
press release, advertisement or other promotional materials issued in respect
to the Sub-Loan. Lender will provide notice and a copy of any such
advertisement materials to Borrower. 

          12.20.
Right to Provide Future Financing. Borrower hereby agrees that Lender
shall have the right to provide the acquisition, construction, renovation and
development financing for all future phases of timeshare Units to be
constructed by Borrower in connection with any Applicable Resort. Borrower
hereby grants to Lender a first opportunity at Lender’s sole discretion, to
provide all acquisition, construction, renovation and development financing for
the Applicable Resort being financed by Borrower (to the extent within
Borrower’s or Guarantor’s control), upon the same financial terms or terms more
favorable to Borrower, for acquisition, construction, renovation or development
financing as contained in this Agreement or any Sub-Loan Agreement to be
secured by all of the Sub-Loan Collateral and such other collateral as may be
requested by Lender. 

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

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

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

57

          12.23.
Applicable Resort Contracts. Subject to the rights of the Applicable
Association, Lender shall have the right to review and approve all present and
future Applicable Resort Contracts to which Borrower or Manager is a party
which affect the Mortgaged Property for amounts equal to or greater than
$100,000 per year per Applicable Resort Contract and all modifications,
extensions or terminations thereof, all of which shall be acceptable to Lender
in its reasonable discretion, which approval shall not be unreasonably withheld
or delayed. 

          12.24.
Consents. Borrower shall obtain all consents, approvals and
authorizations for the transactions contemplated under this Agreement or any
Sub-Loan Agreement applicable to Borrower or the Mortgaged Property, which
consents, approvals and authorizations must be in form and content acceptable
to Lender in its reasonable discretion. 

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

          12.26.
Agreements Related to the Acquisition of the Acquired Assets. With
respect to any Applicable Resort which Lender has made an Applicable Sub-Loan,
Borrower will deliver to Lender prior to the date of the Initial Sub-Loan
Advance, final executed copies of all documents executed and delivered in
connection with Borrower’s acquisition of the Acquired Assets, including
without limitation, the Acquisition Agreement and all amendments thereto, the
Applicable Declaration, the Bill of Sale and Assignments and any other
documents executed by Borrower in connection with the acquisition of the Applicable
Phase or Applicable Resort (collectively, the “Acquisition Documents”).
All of such Acquisition Documents must be in form and content acceptable to
Lender and shall not be amended, modified, terminated or renewed after Lender
advances a Sub-Loan on any Sub-Loan Collateral which is the subject of such
Acquisition Documents without the prior written consent of Lender. Borrower
shall comply with all terms and conditions of the Acquisition Documents with
respect to any Applicable Sub-Loan to which such Acquisition Documents pertain.

          12.27.
Exchange Company. Prior to the date of the Initial Sub-Loan Advance,
Lender shall have received evidence satisfactory to Lender that the Timeshare
Interests subject to the Lien of Lender’s Sub-Mortgage have been accepted by
Resort Condominiums International LLC (“RCI”) or Interval International (“II”)
into one of their respective reciprocal exchange programs and continues along
with Borrower (or Guarantor) to remain affiliated therewith as of the applicable
Sub-Loan Closing Date. Borrower agrees that such Timeshare Interests to the
extent within the Borrower’s control, shall at all times be affiliated with
either RCI or II. Borrower agrees to pay the applicable external exchange
company any and all fees which are properly assessed by the exchange company in
connection with Borrower’s or the Applicable Resort’s 

58

affiliation
therewith. Borrower shall continue to sell memberships in the applicable
exchange company for so long as it is authorized to do so. 

          12.28.
One to One Ratio Compliance. Borrower covenants that it will use its
best efforts to cause the Club manager to maintain the One to One Ratio in a
manner consistent with the Club Documents and applicable state timeshare
registrations. Borrower shall use its best efforts to cause Club manager to
provide Lender with a report on an annual basis which indicates and documents
compliance with the One to One Ratio. 

SECTION 13. REPORTING
REQUIREMENTS. 

          So
long as any portion of the Obligations remains unsatisfied or this Agreement or
any Sub-Loan Agreement has not been terminated, Borrower and Guarantor shall
furnish (or cause to be furnished, as the case may be) to Lender the following:

          13.1.
Intentionally Omitted. 

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

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

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

59

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

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

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

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

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

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

60

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

          13.11.
Other Information. In connection with any Sub-Loan, Borrower will
promptly deliver to Lender any other information related to the Work, the
Sub-Loan Collateral, the Applicable Resort, Borrower or Guarantor, as Lender
may in good faith request. 

SECTION 14. NEGATIVE
COVENANTS. 

          As
of the date hereof and as to each Sub-Loan Closing Date, Obligors hereby
covenant and agree with Lender as follows: 

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

          14.2.
Applicable Resort Contracts. No Applicable Resort Contract to which
Borrower is a party and which has been pledged to Lender equal to or greater
than $100,000 per year shall be modified, extended, terminated or entered into,
without the prior written approval of Lender, which approval shall not be
unreasonably withheld or delayed. 

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

          14.4.
Sale of Assets. Obligors will not sell or otherwise dispose of any
interest in any of the Sub-Collateral, except the assignment of such interest
to Lender or sales to Purchasers in the ordinary course of business or if
disposed in the ordinary course of business. 

          14.5.
Amendment of Applicable Declaration. To the extent within the direct or
indirect control of Obligors, Obligors will not without the prior written
consent of Lender, which consent shall not be unreasonably withheld, record,
file or permit any amendment of the Applicable Declaration or assign any of
their rights under the Applicable Declaration. Borrower shall not assign any of
its rights under the Applicable Declaration to any Person other than Lender. 

          14.6.
Ownership. Obligors will not permit any change in the ownership
interests in Borrower or any change, direct or indirect, in the management or
control of Borrower 

61

as a result of
which Guarantor will cease to own 100% (directly or indirectly) of all
outstanding and issued stock of Borrower. 

          14.7.
Other Liens or Assignments. Obligors will not sell, convey, transfer,
pledge, hypothecate, encumber, grant or permit to exist a lien or security
interest in any of the Sub-Loan Collateral or in any of the Applicable Resort
Contracts, other than applicable Permitted Liens and Encumbrances with respect
to a particular Sub-Loan as identified as an Exhibit to the Applicable Sub-Loan
Agreement. Notwithstanding the foregoing, Obligors may sell Timeshare Interests
to Purchasers in the ordinary course of Obligors’ business, provided that
Obligors pay to Lender the required Release Payments related to such sales. 

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

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

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

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

          14.12.
Distributions. Obligors will not declare or pay any dividends or
distributions if any Event of Default then exists or if such dividend or
distribution would result in an Incipient Default or an Event of Default,
except Borrower may make 

62

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

          14.13.
Restrictions on Transfers. Without the prior written consent of Lender,
Obligors shall not, whether voluntarily or involuntarily, by operation of law
or otherwise: (a) transfer, sell, pledge, convey, hypothecate, factor or assign
all or any portion of the Mortgaged Property or the Sub-Loan Collateral, or
contract to do any of the foregoing, including, without limitation, pursuant to
options to purchase, and so-called “installment sales contracts,” “land
contracts” or “contracts for deed” (except that Borrower shall have the right
to sell Timeshare Interests to Purchasers in arms-length transactions and as
provided in Section 14.4); (b) lease or license the Mortgaged Property or any
portion of the Mortgaged Property, or change the legal or actual possession or
use thereof; or (c) cause or permit the assignment, pledge or other encumbrance
of any of the Applicable Resort Contracts or all or any portion of Borrower’s
right, title or interest in the Applicable Declaration. 

          14.14.
Restrictive Covenants. Without the prior written consent of Lender,
Borrower will not consent to, or otherwise acquiesce in, any change in any
private restrictive covenant, planning or zoning law or other public or private
restriction, which would limit or alter the use of the Mortgaged Property,
except Borrower may record documents in connection with development of the
Applicable Resort provided same are consented to by Lender. 

          14.15.
Timeshare Regime. Without the prior written consent of Lender, Borrower
will not amend, modify or terminate the Applicable Declaration; nor shall
Borrower assign its rights as “developer” under the Applicable Declaration to
any Person other than Lender. 

          14.16.
Chief Executive Office. Obligors will not change their chief executive
office or the location at which they do business without at least fifteen (15)
days prior written notice to Lender and delivery to Lender of such UCC
amendments or other financing statement and access agreement as Lender may
require to maintain Lender’s lien against any of the Sub-Loan Collateral and
Lender’s ability to obtain access to such Sub-Loan Collateral and Obligors’
books and records. 

          14.17.
Marketing/Sales. Without the prior written consent of Lender, Borrower
will not market, attempt to sell or sell or permit or justify any sales or
attempted sales of any Timeshare Interests in the Applicable Phase or
Applicable Resort except in compliance in all material respects with the
applicable timeshare act and all applicable Legal Requirements in each
Applicable Jurisdiction where marketing, sales or solicitation activities
occur. 

          14.18.
Amenities. Borrower will not make any promises of or representations
regarding any applicable Amenities and their availability for use by
Purchasers, unless such Amenities are fully completed or such use as otherwise
permitted by applicable Legal Requirements (Timeshare Interest are otherwise
permitted to be sold in accordance with applicable legal requirements) and the
right of the Purchasers to use 

63

such Amenities
is set forth in a legally binding agreement approved by Lender in writing or
such potential use is accurately disclosed. 

          14.19.
Changes in Accounting. Borrower and Guarantor shall not change their
method of accounting unless such change is permitted by GAAP and provides such
change does not have the effect of curing or preventing what would otherwise be
an Event of Default if such change had not taken place unless such change is
required by GAAP. 

          14.20.
Club Reservation System. Should the Reservation System become otherwise
unavailable to the Club as a result of termination of the Club management
contract by and between the Vacation Club Managing Entity, Vacation Trust,
Inc., a Florida corporation, as Trustee pursuant to the terms of the Trust
Agreement (as defined in the POS) (the “Club Trustee”) and Bluegreen
Vacation Club, Inc. (“Club Management Contract”) or as a result of
termination of the existence of the Vacation Club Managing Entity, then
Borrower or Guarantor shall use their best efforts to cause the appropriate
persons or entities to comply in all material respects with the F.S. Ch. 721 -
the Florida Vacation Plan and Timesharing Act (specifically Florida Statutes
Chapter 721.56 (5), as may be applicable, together with the then-current
Bluegreen Vacation Club Multi-Site Public Offering Statement approved by the
Division (“POS”), which presently provides that in the event of
termination of the Vacation Club Managing Entity, a trust arrangement meeting
the criteria of 721.56(5)(b) shall be established to provide for an adequate
period of continued operation of the Reservation System for the Club until a
substitute reservation system can be acquired. 

SECTION 15. AFFILIATE
INDEBTEDNESS. 

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

SECTION 16. FINANCIAL
COVENANTS. 

          16.1.
Minimum Tangible Net Worth. Guarantor shall maintain Tangible Net Worth
determined on a consolidated basis of not less than (a) $250,000,000, as of the

64

date of this
Agreement and at all times thereafter, which shall be measured and confirmed
quarterly and annually to Lender’s satisfaction, until each Sub-Loan is paid in
full and Lender shall have no further obligation to fund any Advances under any
Sub-Loans made in connection herewith. The terms “Tangible Net Worth” and “Net
Income” shall have the meanings given to them under GAAP. 

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

SECTION 17. CONDITIONS
OF AND DOCUMENTS TO BE DELIVERED ON OR BEFORE THE SUB-LOAN CLOSING DATE. 

          The
following are conditions of any Sub-Loan closing and must be provided prior to
the Sub-Loan Closing Date for such Sub-Loan. To the extent that the conditions
involve the delivery to Lender of any documents or other due diligence items,
such documents and items must be in form and content acceptable to Lender in
its discretion. 

          17.1.
Sub-Agreement and Sub-Loan Documents. Lender shall receive the Sub-Loan
Agreement and all of the Sub-Loan Documents duly executed by all parties
thereto. 

          17.2.
Opinions of Counsel. Lender shall receive an opinion of corporate
counsel for Obligors and the Applicable Association in the Applicable
Jurisdictions. 

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

	
 

	
 

	
 

	
 

	
(a)

	
Applicable
 Declaration; 

	
 

	
 

	
 

	
 

	
(b)

	
Condominium
 and/or Timeshare Plan; 

	
 

	
 

	
 

	
 

	
(c)

	
the existing
 Public Report; 

	
 

	
 

	
 

	
 

	
(d)

	
Projected
 cash flows for the Mortgaged Property and Sub-Loan Collateral; 

	
 

	
 

	
 

	
 

	
(e)

	
Applicable
 Association Articles of Incorporation and By-laws; 

	
 

	
 

	
 

	
 

	
(f)

	
Management
 Agreement, if applicable; 

	
 

	
 

	
 

	
 

	
(g)

	
Rules and
 Regulations; 

65

	
 

	
 

	
 

	
 

	
(h)

	
Form of
 owner’s purchase contract and warranty deed; and

	
 

	
 

	
 

	
 

	
(i)

	
Such other
 Applicable Resort-related documents as Lender may require. 

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

          17.5.
Obligors’ Documents. Lender shall receive a copy of the Governing
Documents of each Obligor and all amendments thereto, certified as to accuracy
and completeness by either an officer of such Obligor or by the public official
in whose office the same are recorded or filed. 

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

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

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

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

          17.10.
Applicable UCC-1 Financing Statements. Lender shall receive confirmation
that the applicable UCC-1 financing statements naming Lender as secured party
and Borrower as debtor describing all Sub-Loan Collateral now or hereafter
assigned by Borrower to Lender pursuant hereto have been filed with the
Secretary of State of the Applicable Jurisdiction and the public records for
the Applicable Jurisdiction. 

          17.11.
UCC-1 Search Report. Lender shall receive a current search report from a
UCC search company approved by Lender setting forth all UCC-1 filings, tax
liens and 

66

judgment liens
made against each Obligor. Such search report must indicate that at the time of
the filing of the financing statements (Form UCC-1) in favor of Lender there
were on file no financing statements or liens evidencing a security interest in
any Sub-Loan Collateral. 

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

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

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

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

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

67

Lender. The
Title Policy shall provide that Lender shall receive an endorsement to the
Title Policy on the date of each Advance under any Sub-Loan: (i) indicating
that since the date of the last preceding Advance under the Applicable Sub-Loan
Agreement there has been no change in the state of title and no mechanic’s or
materialmen’s lien, claim or lien or similar notice has been filed against the
Applicable Phase or Applicable Resort; (ii) updating the Title Policy to the
date of such Advance under the Applicable Sub-Loan Agreement; and (iii)
increasing the coverage of the Title Policy by an amount equal to such Advance,
if the Title Policy does not by its own terms provide for such an increase. The
condition of title must be satisfactory to Lender in all respects. The final
Title Policy in connection with each Sub-Loan must be delivered to Lender at or
promptly after the Sub-Loan Closing Date but in no event later than thirty (30)
days following the Sub-Loan Closing Date consistent in all respects with the
title commitment and pro forma lender’s policy. 

          17.17.
Taxes and Assessments. Lender shall receive evidence that all taxes and
assessments related to the Applicable Resort have been paid, or will be paid
out of closing proceeds, which taxes and assessments include, without
limitation, real property taxes, and any assessments related to the Mortgaged
Property. Except as disclosed in writing to Lender prior to any Sub-Loan
Closing Date, Borrower shall have provided evidence satisfactory to Lender that
the Units have been segregated from all other property on the applicable
municipal tax rolls. 

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

          17.19.
Expenses. Obligors shall have paid all fees and expenses required to be
paid to Lender prior to or at any Sub-Loan Closing pursuant to this Agreement
and the applicable Sub-Loan. 

          17.20.
Acquisition Documents. Lender shall have received a copy of each of the
following and all amendments thereto, certified as to accuracy and completeness
by Borrower: 

           
          (a)          
The
 Acquisition Documents; and

           
          (b)          
All other documents collateral to the Acquisition Documents.
 

          17.21.
Closing on Acquisition Agreement. Lender shall have received evidence
that closing under the Acquisition Agreement has been completed pursuant to the
Acquisition Agreement, without any material modifications thereto or waiver by
Borrower of conditions thereunder, and that all Acquisition Documents have been
duly executed, delivered and recorded (if applicable) and are in form and
content acceptable to Lender. 

          17.22.
Permits and Approvals. Lender shall have received copies of all existing
building and renovation permits, all other applicable governmental permits,
approvals, consents and licenses for the Mortgaged Property and satisfactory
evidence that the Mortgaged Property and the intended uses of the Mortgaged
Property are and will be in 

68

compliance
with all Legal Requirements. Such evidence may include letters, licenses,
permits, certificates and other correspondence from the appropriate
governmental authorities, opinions of Borrower’s attorney or other attorneys,
as Lender may determine or other confirmation acceptable to Lender. All such
approvals shall continue to be legally valid and shall remain in full force and
effect after issuance and until the Sub-Loan is repaid in full. 

          17.23.
Applicable Resort Contracts. Lender shall have received executed copies
of all Applicable Resort Contracts. 

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

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

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

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

          17.28.
Acquisition and/or Construction Equity. Lender shall have received
evidence that Borrower is funding from its own funds (and not with proceeds of
any Sub-Loan) at least 15% of the verifiable costs to acquire the Applicable
Phase or Applicable Resort and/or complete the Work for the Applicable Phase or
Applicable Resort, as applicable. 

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

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

          Subject
to the provisions of Section 18 below in connection with any
Construction Advance, Lender shall require each of the above documents to be
provided prior to making the Initial Sub-Loan Advance in connection with any
Sub-Loan unless waived in writing by Lender. By completing the closing
hereunder, or by making Advances under any Sub-Loan Agreement, Lender does not
thereby waive a breach of any warranty or representation made by Borrower or
Guarantor hereunder or any agreement, document, or instrument delivered to
Lender or otherwise referred to herein, and any claims and 

69

rights of
Lender resulting from any breach or misrepresentation by Borrower or Guarantor
is specifically reserved by Lender. 

SECTION 18. CONDITIONS
TO LENDER’S OBLIGATION TO MAKE CONSTRUCTION ADVANCES IN CONNECTION WITH ANY
SUB-LOAN. 

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

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

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

          18.3.
Covenants. Obligors shall have fully performed and complied with all
agreements and conditions contained in this Agreement, any Sub-Loan Agreement
or other Sub-Loan Documents. 

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

          18.5.
Request for Sub-Loan Advance under Construction Component of Sub-Loan.
Except as otherwise provided in this Agreement, Lender shall have received in
connection with the applicable Sub-Loan, a Request for Sub-Loan Advance for the
subject Construction Advance duly executed on behalf of Borrower with such
supporting documentation as Lender may require. Each Request for any
Construction Advance, a form of which is attached as Exhibit “D” hereto,
shall: 

                    (a)          specify
the subject Sub-Loan and Applicable Sub-Loan Agreement and the principal amount
of the Construction Advance requested and the specific category and amount of
costs of the Work to be paid with the proceeds thereof; 

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

                    (c)          be
signed by an officer of Borrower; 

70

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

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

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

                    (g)          state
that in connection with the Applicable Sub-Loan, no Default or Event of Default
exists as of the date of the request and, after giving effect to the making of
such requested Construction Advance, no Default or Event of Default would exist
as of the date on which the requested Advance is to be paid. 

                    (h)          the
Inspector shall after inspection of the Work for each applicable Phase verify
that the progress of construction claimed in the Request for Construction
Component Advance and confirm that such construction is progressing in
accordance with the plans, the delivery of labor, services and materials
covered by the Request for Construction Component Advance and the Applicable
Phase Total Budget and all Applicable Laws, that the aggregate amount of
Advances on the Construction Component of the Loan does not exceed the cost of
work already completed and that the applicable Phase will be completed on or
before the Applicable Completion Date. A form of TFC’s Inspector Sub-Loan
Construction Cost Certificate to be used for each Sub-Loan is attached as “Exhibit E”
hereto. 

                    (i)          The
Contractor shall submit a draw certificate to Lender in the form of the
Sub-Loan Draw Certificate of the General Contractor which is attached as “Exhibit F”
hereto. 

            18.6.
Soft Costs. Lender shall have received written documentation which
satisfactorily accounts to Lender for the expenditure of funds allocated to the
payment of any “soft” costs set forth on the applicable Sub-Loan Cost Certificate.

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

71

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

          18.9.
Contractor’s Insurance. In connection with each Sub-Loan, Lender shall
have received evidence of the insurance carried by the Contractor, in coverage
and amount satisfactory to Lender, in Lender’s reasonable discretion. 

          18.10.
Inspector’s Plan and Cost Review. Lender shall have received a written
plan and cost review from the Inspector covering such matters as may be required
by Lender and stating that the proposed Work can feasibly be constructed within
the cost limitations set forth in the applicable Sub-Loan Cost Certificate and
that the proposed Work, when completed in accordance with the Specifications,
will comply with all zoning and governmental requirements. 

          18.11.
Inspector’s Report. Lender shall have received a report satisfactory to
Lender completed by the Inspector which concludes that the construction of the
Work has been in accordance with the Specifications and that the Construction
Advances do not exceed the cost of the work in place. 

          18.12.
Certificates of Substantial Completion. In connection with each
Sub-Loan, Lender shall have received payment applications from the Contractor,
Inspector and Borrower for all Work performed to date. 

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

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

          18.15.
Title Policy Endorsements. Lender shall have received an endorsement to
the Title Policy dating down the Title Policy to the date of each Advance under
any Sub-Loan; indicating that since the original date of the Title Policy there
has been no change in the state of title and no title exceptions not approved
by Lender and such other endorsements to the Title Policy required by Lender;
insuring the lien of the applicable Sub-Loan Mortgage, free and clear of any
and all mechanics’ liens related to the Work; and, if necessary, increasing the
insurance coverage to cover all Construction Advances related to the Work. 

72

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

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

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

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

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

          18.21.
Advances Do Not Constitute a Waiver. No Construction Advance in
connection with any Sub-Loan shall constitute a waiver of any condition of
Lender’s obligation to make further Construction Advances. 

          18.22.
No Obligation to Fund After Filed Liens. Lender shall have no obligation
to advance any monies at any time (in connection with any Sub-Loan) (a) that
there is a claim of lien filed of record against the Mortgaged Property which
has not been paid, transferred to other security or otherwise satisfactorily
discharged, or (b) that any condition precedent to such Advance has not been
met, or (c) Borrower shall have failed to comply with any material provision of
this Agreement or the applicable Sub-Loan Agreement, or (d) an Event of Default
or Incipient Default has occurred and is 

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continuing, or
(e) there should otherwise be a material dispute, involving the Contractor and
a Subcontractor with each other or with Borrower, which Lender believes in its
reasonable judgment must be resolved prior to funding additional Advances under
such Sub-Loan. Lender’s commitment to make Construction Advances hereunder and
in connection with any Sub-Loan Agreement shall at no time be subject to or
liable to attachment or levy by any creditor of Borrower or by the Contractor,
or any agent, contractor, subcontractor or supplier of Borrower. No such
Persons are intended to be third-party beneficiaries of this Agreement or any
Sub-Loan Agreement or any documents or instrument related to the Applicable
Sub-Loan or to have any claim or claims in or to any undisbursed or retained
Applicable Sub-Loan proceeds. 

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

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

SECTION 19. DEFAULT.

          The
occurrence of any one or more of the following events shall constitute an “Event
of Default” hereunder and under any Sub-Loan Agreement or Sub-Loan
Documents: 

          19.1.
Sub-Loan Payments. (i) Borrower shall fail to make any payment or
mandatory prepayment of principal, interest, any Release Payments or Advance
fees, within five (5) Business Days of the date such payment is due in
connection with any Sub-Loan; and/or (ii) Borrower shall fail to make payment
of any other fees or payment obligations due to Lender (other than as set forth
in (i) above) within five (5) Business Days after written notice from Lender to
Borrower that such a payment is due and payable in connection with any
Sub-Loan. 

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

          19.3.
Warranties or Representations. Any representation, warranties, or other
statement made by or on behalf of Borrower or Guarantor in this Agreement, any
Sub-Loan Agreement, any of the Sub-Loan Documents or in any instrument
furnished in 

74

compliance
with or in reference to the Sub-Loan Documents, is false, misleading or
incorrect in any material respect as of the date made or reaffirmed. 

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

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

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

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

          19.8.
Intentionally Omitted.

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

          19.10.
Default of Guarantor. Any default under any Guaranty or the revocation
or attempted revocation or repudiation thereof, in whole or part, by Guarantor.

          19.11.
Merger or Dissolution. Any merger, dissolution, consolidation,
reorganization, liquidation or restructure of Borrower, in violation of the
terms of this Agreement, any Sub-Loan Agreement or any Sub-Loan Document. 

75

          19.12.
Default by Borrower or Guarantor Under Other Agreements. Any default by
Borrower or Guarantor in the payment or performance of any indebtedness to
Lender or to any affiliate of Lender (after expiration of any applicable grace,
notice or cure period); provided, however, a default under the Securitization
Bonds shall not give rise to a Default or Event of Default hereunder or under
any Sub-Loan Agreement or other Sub-Loan Documents and a Default or Event of
Default hereunder or under any Sub-Loan Agreement or other Sub-Loan Documents
shall not give rise to a default under the Securitization Bonds.

          19.13.
Loss of License. The loss, revocation or failure to renew or file for
renewal of any registration, approval, license, permit or franchise now held or
hereafter acquired by Borrower with respect to any Work in connection with any
Sub-Loan, the Mortgaged Property, the Sub-Loan Collateral or sale and financing
of any Units or Timeshare Interests comprising the Sub-Loan Collateral, or the
failure to pay any fee, which is necessary for the continued operation of the
applicable Mortgaged Property, sale and financing of any Units or Timeshare
Interests or Borrower’s business in the same manner as it is being conducted at
the time of such loss, revocation, failure to renew or failure to pay and such
loss, revocation or failure to renew or file for renewal shall continue for
thirty (30) days. 

          19.14.
Issuance of Order. The issuance of any stay order, cease and desist
order, injunction, temporary restraining order or similar judicial or
nonjudicial sanction limiting or otherwise materially and adversely affecting
any Work which has commenced in connection with any Sub-Loan under which Lender
has made a Construction Advance, other business operations in respect of any
Mortgaged Property or Sub-Loan Collateral, or the enforcement of Lender’s
remedies and such order or other court sanction shall continue for twenty (20)
days provided that Borrower shall be entitled to cure such failure for a
period of twenty (20) days and if such failure cannot be completed within the
twenty (20) day period, notwithstanding Borrower’s diligent efforts to do so,
then Borrower shall have an additional twenty (20) days to complete such cure
(for a total of forty (40) days to cure), provided that Borrower is
diligently seeking to cure such default within the additional twenty (20) day
period. 

          19.15.
Violation of Negative Covenants. Borrower violates any negative covenant
set forth in Section 14 not cured within the cure period set forth in Section
19.2. 

          19.16.
Deficiency. In Lender’s good faith opinion, the cost of completing the
applicable Work in accordance with the applicable Specifications exceeds the
total amount set forth in the applicable Sub-Loan Cost Certificate, and
Borrower has failed to make arrangements satisfactory to Lender within ten (10)
days after notice from Lender for the payment of such additional costs. 

          19.17.
Abandonment or Cessation of Construction. Prior to completion, the Work
with respect to any Sub-Loan (pursuant to which Lender has made a Construction
Advance) which is commenced shall be abandoned or shall cease for any reason
(unless an event of Force Majeure as defined in Section 11.21 has occurred) and
not be  

76

resumed within
thirty (30) days thereafter and same materially and adversely affects Borrower’s
ability to repay the Sub-Loan.

          19.18.
Lien Against Sub-Loan Collateral. Other than Permitted Liens and
Encumbrances, if Borrower grants any Lien upon any of the Sub-Loan Collateral
or Borrower grants any Lien against any part of the Mortgaged Property or
Sub-Loan Collateral unless otherwise approved by Lender in writing. 

          19.19.
Unauthorized Work. Borrower shall, without Lender’s prior written
consent, undertake or contract for Work outside of or beyond the scope of the
Specifications other than pursuant to change orders permitted pursuant to Section
11.3 of this Agreement or the provisions of any Sub-Loan Agreement which
action is not cured within the cure period set forth in Section 19.2. 

          19.20.
Breach. Any violation or breach shall occur in any agreement, covenant
or restriction affecting title to the Applicable Resort not cured within the
cure period set forth in Section 19.2. 

          19.21.
Criminal Proceedings. The indictment of Borrower or Guarantor under any
criminal statute, or the commencement of criminal or civil proceedings against
Borrower or Guarantor pursuant to which statute or proceedings the penalties or
remedies sought or available include forfeiture of any Sub-Loan Collateral, or
Borrower or Guarantor engages or participates in any “check kiting” activity
regardless of whether a criminal investigation has been commenced. 

          19.22.
Bonding Requirements. To the extent applicable, Borrower fails to
maintain any applicable payment, performance and completion bonds satisfactory
in form, content and amount and with a bonding company satisfactory to Lender
guarantying the completion, development and furnishing of the Applicable Phase
or Applicable Resort as required by Lender and in accordance with the terms and
conditions of this Agreement and any Sub-Loan Agreement. 

          19.23.
Permits. Any building permit required for the applicable Work shall be
revoked or suspended or shall lapse, or if any building or other permit or
license shall be conditional in nature and Borrower shall fail to punctually
satisfy the conditions so as to prevent its validity, and such revocation,
suspension, lapse or failure to satisfy continues uncured for a period of
thirty (30) days or such longer period not to exceed ninety (90) days if
Borrower is proceeding diligently to complete such cure. 

          19.24.
Fraud. If Borrower or Guarantor takes or is in the process of taking any
action which Lender shall deem to be intended to (i) defraud any of their
creditors, including, without limitation, Lender, (ii) convert all or any
portion of the Sub-Loan Collateral, or (iii) intentionally violate or
circumvent any Legal Requirements material to their respective businesses. 

          19.25.
Suspension of Sales. The issuance of any stay order, cease and desist
order, injunction, temporary restraining order, notice of violation of any law,
ordinance or regulation or other judicial or nonjudicial sanction limiting or
materially affecting any 

77

Timeshare
Interest marketing or sales activities in respect of the Applicable Phase or
Applicable Resort or any portion of the Mortgaged Property or Sub-Loan
Collateral or suspending Work on any portion of the Applicable Phase or
Applicable Resort or the Mortgaged Property, which order, injunction, notice of
violation or sanction is not terminated or dissolved within the cure period set
forth in Section 19.2. 

          19.26.
Insolvency. Borrower or Guarantor becomes insolvent or otherwise
generally unable to pay its respective debts as and when they become due or
payable.

          19.27.
Encroachments and Permits. If all or any portion of any of the
construction of improvements for any Applicable Phase or Applicable Resort
(excluding common areas) encroach (without consent) in any material respects
not indicated on the applicable As-Built Survey, upon any street or road,
setback, or easement or upon any adjoining property, or violate in any material
respects any Legal Requirements, or of any governmental or quasi-governmental
authority, or any zoning setback line; or if any building permit(s) or any
permit, license, approval or consent from any Governmental Agency shall be
revoked or suspended or shall lapse, and after receipt of written notice to
such effect Borrower or Guarantor fails to punctually satisfy the conditions so
as to prevent its invalidity and any such breach is not cured within the cure
period in Section 19.2. 

          19.28.
Material Adverse Change. A material adverse change in the value of any
of the Sub-Loan Collateral or the Mortgaged Property or in the financial
condition of Borrower or Guarantor has occurred as determined by Lender in its
reasonable discretion.

          19.29.
Cessation of Business. Any cessation of a material part of the operation of the
applicable Mortgaged Property or Sub-Loan Collateral and if such business shall
not be resumed within ten (10) days after such cessation, unless the cessation
is due to a Force Majeure event. Notwithstanding the foregoing, Borrower may
cease on-site sales and marketing operations at an Applicable Resort as long as
the subject Timeshare Interests continue to be sold at other sales centers of
Borrower. 

SECTION 20. TERMINATION
OF OBLIGATION TO ADVANCE/REMEDIES.

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

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          20.2.  Remedies. At the option of the Lender, upon the occurrence of an Event
of Default and at any time while such Event of Default is continuing, Lender
may in its sole discretion take one or more of the following actions:

                    (a)          Acceleration.
Without demand or notice of any nature whatsoever, declare the Obligations
under one or more or all Sub-Loan Agreements, immediately due and payable,
whereupon the same shall be due and payable.

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

                    (c)          Termination
of Obligation to Grant Partial Release. Lender may in its sole discretion
stop granting any partial releases from the Lien of any or all Sub-Loan
Mortgage.

                    (d)          Foreclosure.
Whether or not Lender takes possession of the Sub-Loan Collateral, Lender may
proceed to foreclose any or all of the Sub-Loan Mortgages and to sell the
property encumbered by any or all Sub-Loan Mortgages in its entirety or in
separate parcels, under the judgment or decree of a court or courts of
competent jurisdiction and to pursue any other remedy available to it, all as
Lender shall deem appropriate. Upon commencement of suit or foreclosure of any
Sub-Loan Mortgage, Obligations, if not previously accelerated and declared due,
shall be immediately due and payable. Upon any foreclosure sale pursuant to judicial
proceedings, Lender may bid for and purchase all or any portion of the property
encumbered by any Sub-Loan Mortgage and, upon compliance with the terms of
sale, may hold, retain and possess and dispose of such property.

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

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

79

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

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

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

                     
                         
(A)          make
all maintenance, repairs, renewals, replacements, additions and improvements
necessary and proper to the Mortgaged Property and Sub-Loan Collateral and
purchase or otherwise acquire additional fixtures, personalty and other
property;

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

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

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

                                                 (E)          disburse
that portion of any of the applicable Sub-Loan proceeds not previously
disbursed (including any retainage) to the extent necessary to complete the
Work which has been commenced in accordance with the Specifications, and if
such completion requires a larger sum than the remaining undisbursed portion of
the Applicable Sub-Loan, disburse such additional funds, all of which funds so
disbursed by Lender shall be deemed to have been disbursed to Borrower and
shall be secured by the Sub-Loan Collateral. For this purpose, Borrower hereby
constitutes and appoints Lender its true and lawful attorney-in-fact with full
power of substitution to complete the Work in Borrower’s name and hereby
empowers Lender as said attorney-in-fact to take all actions necessary in
connection therewith,

80

including but
not limited to the following: (i) to use any funds of Borrower, including any
balance which may be held in escrow and any funds which may remain unadvanced
hereunder, for the purpose of completing the Work in the manner called for by
the Specifications; (ii) to make such additions and changes and corrections in
the Specifications which shall be necessary or desirable to complete the Work
in substantially the manner contemplated by the applicable Specifications;
(iii) to employ such contractors, subcontractors, agents, architects, engineers
and inspectors as shall be required for said purposes; (iv) to pay, settle or
compromise all existing or future bills and claims which are or may be liens
against the Mortgaged Property or Sub-Loan Collateral or which may be necessary
or desirable for the completion of the Work or the clearance of title to the
Mortgaged Property; (v) to execute all applications and certificates in
Borrower’s name which may be required by any Sub-Loan Construction Contract; and
(vi) to do any and every act with respect to the Mortgaged Property and
Sub-Loan Collateral which Borrower may do in its own behalf. Such power of
attorney shall be deemed to be a power coupled with an interest which cannot be
revoked by death or otherwise. Said attorney-in-fact shall also have power to
prosecute and defend all actions or proceedings in connection with the
Mortgaged Property and Sub-Loan Collateral and to take such action and require
such performance as it deems necessary. In accordance therewith, Borrower
hereby assigns and quitclaims to Lender all sums to be advanced hereunder,
including retainage and any sums in escrow, conditioned upon the use of said
sums, if any, for the completion of the Work.

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

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

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

                                             (C)          The
cost of insurance;

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

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

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

81

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

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

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

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

82

appropriate
judicial proceedings for appointment of a receiver for the Sub-Loan Collateral,
or any part thereof, and Borrower hereby consents to any such appointment.

                    (i)          Exercise
of Other Rights. Lender shall have all the rights and remedies of a secured
party under the Uniform Commercial Code and other legal and equitable rights to
which it may be entitled, and may exercise any and all other rights or remedies
afforded by this Agreement, any Sub-Loan Agreement or by the other Sub-Loan
Documents as Lender shall deem appropriate, at law, in equity or otherwise,
including, but not limited to, the right to bring suit or other proceeding,
either for specific performance of any covenant or condition contained in this
Agreement, any Sub-Loan Agreement or by the other Sub-Loan Documents or in aid
of the exercise of any right or remedy granted to Lender in this Agreement, any
Sub-Loan Agreement or by the other Sub-Loan Documents. Lender shall also have
the right to require Borrower to assemble any of the Sub-Loan Collateral not in
Lender’s possession, at Borrower’s expense, and make it available to Lender at
a place to be determined by Lender which is reasonably convenient to both
parties, and Lender shall have the right to take immediate possession of all of
the Sub-Loan Collateral, and may enter the Mortgaged Property or any of the
premises of Borrower or wherever the Sub-Loan Collateral shall be located, with
or without process of law wherever the Sub-Loan Collateral may be, and, to the
extent such premises are not the property of Lender, to keep and store the same
on said premises until sold (and if said premises shall be the property of
Borrower, Borrower agrees not to charge Lender for use and occupancy, rent, or
storage of the Sub-Loan Collateral, for a period of at least ninety (90) days
after sale or disposition of the Sub-Loan Collateral).

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

83

preservation
of its security interest, or to defend its own interest, such expenses and
counsel fees shall be allowed to Lender and the same shall be made a further
charge and Lien upon the Sub-Loan Collateral.

                    In
view of the fact that federal and state securities laws may impose certain
restrictions on the methods by which a sale of Sub-Loan Collateral comprised of
securities may be effected after an Event of Default, Borrower agrees that upon
the occurrence or existence of an Event of Default, Lender may, from time to
time, attempt to sell all or any part of such Sub-Loan Collateral by means of a
private placement to the extent permitted by law restricting the bidding and
prospective purchasers to those who will represent and agree that they are
purchasing for investment only and not for, or with a view to, distribution. In
so doing, Lender may solicit offers to buy such Sub-Loan Collateral, or any
part of it for cash, from a limited number of investors deemed by Lender, in
its reasonable judgment, to be responsible parties who might be interested in
purchasing the Sub-Loan Collateral, and if Lender solicits such offers from not
less than two (2) such investors, then the acceptance by Lender of the highest
offer obtained therefrom shall be deemed to be a commercially reasonable method
of disposition of such Sub-Loan Collateral.

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

          20.5.
Suits to Protect the Mortgaged Property and Sub-Loan Collateral. Lender
shall have power to: (a) institute and maintain such suits and proceedings as
it may deem expedient to prevent any impairment of the Mortgaged Property and
Sub-Loan Collateral by any acts which may be unlawful or which violate this
Agreement, any Sub-Loan Agreement or any of the Sub-Loan Documents; (b)
preserve or protect Lender’s interest in the Mortgaged Property and Sub-Loan
Collateral and in the income, revenues, rents and profits arising therefrom;
and (c) restrain the enforcement of or compliance with any legislation or other
government enactment, rule or order that may be unconstitutional or otherwise
invalid, if the enforcement of or compliance with such enactment, rule or order
would impair Lender’s security. All payments made or costs or expenses incurred
by Lender in connection with this paragraph, including reasonable

84

attorneys’
fees and costs, whether or not suit is filed and, if filed, for all appeals,
shall be secured by the Sub-Loan Collateral and shall be immediately repaid by
Borrower to Lender on demand, with interest thereon from the date incurred
until the date repaid by Borrower at the Default Rate for the Applicable
Sub-Loan.

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

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

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

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

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

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

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

85

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

          20.10.
Waivers. The acceptance by Lender at any time and from time to time of
partial payments of the Obligations shall not be deemed to be a waiver of any
Event of Default then existing. No waiver by Lender of any Event of Default
shall be deemed to be a waiver of any other or subsequent Event of Default. No
delay or omission by either party in exercising any right or remedy under any
of the Sub-Loan Documents shall impair such right or remedy or be construed as
a waiver thereof or an acquiescence therein, nor shall any single or partial
exercise of any such right or remedy preclude other or further exercise
thereof, or the exercise of any other right or remedy under any of the Sub-Loan
Documents or otherwise. Further, except as otherwise expressly provided in this
Agreement, any Sub-Loan Agreement or any other Sub-Loan Documents or by any
Legal Requirements, Borrower and each and every surety, endorser, guarantor and
other party liable for the payment or performance of all or any portion of the
Obligations, severally waive notice of the occurrence of any Event of Default,
presentment and demand for payment, protest, and notice of protest, notice of
intention to accelerate, acceleration and nonpayment, and agree that their
liability shall not be affected by any renewal or extension in the time of
payment of the Obligations, or by any release or change in any security for the
payment or performance of the Obligations, regardless of the number of such
renewals, extensions, releases or changes.

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

          Upon
the sale or transfer by operation of law or otherwise of all or any part of the
Sub-Loan Collateral, Lender, without further notice, is authorized and
empowered to deal with any such transferee as fully and to the same extent as
it might deal with

86

Borrower,
without in any way waiving, releasing or discharging any of Borrower’s
liabilities or obligations hereunder.

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

          IF
A COURT OF COMPETENT JURISDICTION SHOULD DETERMINE THAT BORROWER IS ENTITLED TO
RECOVER DAMAGES FROM LENDER FOR ANY REASON OR UPON ANY CAUSE, CLAIM OR
COUNTERCLAIM, IN CONNECTION WITH THE ANY SUB-LOAN OR THE TRANSACTIONS PROVIDED
FOR OR CONTEMPLATED PURSUANT TO THIS AGREEMENT, ANY SUB-LOAN AGREEMENT OR THE
OTHER SUB-LOAN DOCUMENTS, BORROWER STIPULATES AND AGREES THAT ANY SUCH DAMAGES
OR AWARDS SHALL NOT INCLUDE CONSEQUENTIAL, SPECIAL OR PUNITIVE DAMAGES. IN THE
EVENT THE FOREGOING PROVISION IS NOT ENFORCED BY THE COURTS, THEN BORROWER
AGREES THAT BORROWER’S SOLE REMEDY FOR ANY CAUSE, CLAIM OR COUNTERCLAIM WILL BE
TO RECOVER COMPENSATORY DAMAGES IN CONNECTION WITH ANY SUB-LOAN AND SHALL NOT
INCLUDE PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES.

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

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

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

87

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

SECTION 21. PARTIAL
RELEASES; OTHER RELEASES.

          At
Borrower’s cost and expense, Lender agrees to execute, from time to time,
releases from the Lien of the Sub-Loan Mortgage, in form and substance
acceptable to Lender and Borrower, of Timeshare Interests and related Sub-Loan
Collateral in connection with the bona fide sale of such Timeshare Interests as
permitted hereunder (“Released Property”), upon the written
request of Borrower, provided that:  

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

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

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

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

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

          In
addition, at Borrower’s cost and expense, Lender agrees to execute, from time
to time, releases from the Lien of the Sub-Loan Mortgage, in form and content
(consistent with Schedule 21 attached hereto) or as otherwise
appropriate in the jurisdiction which said Sub-Loan Collateral is located, of
certain furniture, fixtures and equipment being conveyed by Borrower to the
Applicable Association as provided for in the Applicable Declaration, Sub-Loan
Collateral subject to any UCC financing statement which is to be partially
released or of such other items of personal or real property as may be
requested by the applicable Governmental Agency in connection with the approval
of the Applicable Phase or Applicable Resort.

          At
such time as the Obligations for any Sub-Loan have been paid in full, this
Agreement only as it relates to such Sub-Loan Collateral and the Applicable
Sub-Loan Agreement shall be terminated and of no further force or effect,
Lender will, at Borrower’s cost and expense, execute and deliver to Borrower
such releases, termination statements and such other agreements as Borrower may
reasonably

88

request to
evidence the release and termination of any and all Liens granted by Borrower
in favor of Lender against the applicable Sub-Loan Collateral. 

SECTION 22. CERTAIN
RIGHTS OF LENDER. 

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

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

          22.3.
No Liability of Lender. Neither the acceptance of this Agreement or any
Sub-Loan Agreement by Lender, nor the exercise of any rights hereunder by
Lender, shall be construed in any way as an assumption by Lender of any
obligations, responsibilities or duties of Borrower arising in connection with
the Mortgaged Property or under this Agreement, any Sub-Loan Agreement or any
of the Sub-Loan Documents or applicable condominium act or timeshare act, or
under any of the Applicable Resort Contracts, or in connection with any other
business of Borrower, or the Sub-Loan Collateral, or otherwise bind Lender to
the performance of any obligations with respect to the Mortgaged Property or
the Sub-Loan Collateral; it being expressly understood that, unless and until
Lender acquires title to such Mortgaged Property, Lender shall not be obligated
to perform, observe or discharge any obligation, responsibility, duty, or
liability of Borrower with respect to the Mortgaged Property or any of the
Sub-Loan Collateral, or under this Agreement, any Sub-Loan Agreement or under
any of the Sub-Loan Documents, the condominium act or the timeshare act or
under any of the

89

Applicable
Resort Contracts, including, but not limited to, appearing in or defending any
action, expending any money or incurring any expense in connection therewith. 

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

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

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

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

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

90

subordination
or other agreement affecting this Agreement or any Sub-Loan Agreement or the
Lien or charge thereof. 

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

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

          22.11.
Relief from Automatic Stay, Etc. To the fullest extent permitted by law,
in the event Borrower shall make application for or seek relief or protection
under the federal bankruptcy code (“Bankruptcy Code”) or other Debtor
Relief Laws, or in the 

91

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

          22.12.
Investigations and Inquiries. Borrower hereby authorizes Lender to
conduct such investigations and inquiries as to credit, operations of Borrower,
the Mortgaged Property and Sub-Loan Collateral as shall be necessary or
desirable in connection with monitoring the Obligations, and all such persons
of whom Lender may make such inquiry are empowered to cooperate with, and to
provide requested information to Lender. 

SECTION 23. MISCELLANEOUS.

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

	
 

	
 

	
 

	
 

	
 

	
 

	
If to Borrower:

	
 

	
Bluegreen Vacations Unlimited, Inc.

	
 

	
 

	
 

	
4960 Conference Way North

	
 

	
 

	
 

	
Suite 100

	
 

	
 

	
 

	
Boca Raton, Florida 33431

	
 

	
 

	
 

	
Attention: Anthony M. Puleo, Senior Vice

	
 

	
 

	
 

	
 

	
    President, CFO and Treasurer

	
 

	
 

	
 

	
 

	
 

	
With a copy to:

	
 

	
Bluegreen Vacations Unlimited, Inc.

	
 

	
 

	
 

	
4960 Conference Way North

	
 

	
 

	
 

	
Suite 100

	
 

	
 

	
 

	
Boca Raton, Florida 33431

	
 

	
 

	
 

	
Attention: James Martin, Esq., General Counsel

	
 

	
 

	
 

	
 

	
 

	
If to Guarantor:

	
 

	
Bluegreen Corporation

	
 

	
 

	
 

	
4960 Conference Way North

92

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Suite 100

	
 

	
 

	
 

	
Boca Raton, Florida 33431

	
 

	
 

	
 

	
Attention: Anthony M. Puleo, Senior Vice

	
 

	
 

	
 

	
                 President, CFO and Treasurer

	
 

	
 

	
 

	
 

	
 

	
If to Lender:

	
 

	
Textron Financial Corporation

	
 

	
 

	
 

	
45 Glastonbury Boulevard

	
 

	
 

	
 

	
Glastonbury, Connecticut, 06033

	
 

	
 

	
 

	
Attention: RFD Vice President

	
 

	
 

	
 

	
 

	
 

	
With a copy to:

	
 

	
Textron Financial Corporation

	
 

	
 

	
 

	
40 Westminster Street

	
 

	
 

	
 

	
Providence, Rhode Island 02940-6687

	
 

	
 

	
 

	
Attention: RFD Division Counsel

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

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

          23.4.
Continuation and Investigation. The warranties and representations
contained herein shall be and remain true and correct so long as any of the
Obligations have not been satisfied, or so long as part of the Obligations
shall remain outstanding, and each request by Borrower for an Advance shall
constitute an affirmation that the foregoing representations and warranties
remain true and correct as of the date thereof. All representations,
warranties, covenants and agreements made herein or in any certificate or other
document delivered to Lender by or on behalf of Borrower pursuant to or in
connection with this Agreement or any Sub-Loan Agreement or other Sub-Loan Documents
shall be deemed to have been relied upon by Lender notwithstanding any 

93

investigation
heretofore or hereafter made by Lender or on its behalf, and shall survive the
making of any or all of the disbursements contemplated hereby. 

          23.5.
Governing Law; Consent to Jurisdiction. THIS AGREEMENT, ANY SUB-LOAN
AGREEMENT AND THE OTHER SUB-LOAN DOCUMENTS (EXCEPT AS MAY BE EXPRESSLY PROVIDED
THEREIN TO THE CONTRARY) SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF RHODE ISLAND, EXCLUSIVE OF ITS CHOICE OF LAWS
PRINCIPLES. BORROWER CONSENTS TO PERSONAL JURISDICTION BEFORE THE CIRCUIT COURT
IN AND FOR PROVIDENCE COUNTY, RHODE ISLAND AND THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF RHODE ISLAND. BORROWER WAIVES ANY OBJECTION WHICH IT MAY
NOW OR HEREAFTER HAVE TO VENUE IN PROVIDENCE COUNTY, RHODE ISLAND OF ANY SUIT,
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY SUB-LOAN
AGREEMENT OR THE OBLIGATIONS CREATED HEREUNDER OR THEREUNDER OR UNDER ANY OF
THE SUB-LOAN DOCUMENTS AND FURTHER WAIVES ANY CLAIM THAT PROVIDENCE COUNTY,
RHODE ISLAND IS NOT A CONVENIENT FORUM FOR ANY SUCH SUIT, ACTION OR PROCEEDING.
SERVICE OF PROCESS ON BORROWER IN ANY ACTION ARISING OUT OF OR RELATING TO THIS
AGREEMENT, ANY SUB-LOAN AGREEMENT OR ANY OF THE SUB-LOAN DOCUMENTS SHALL BE
EFFECTIVE IF MAILED TO BORROWER AT THE ADDRESS LISTED FOR BORROWER IN SECTION
23.1.  

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

          23.7.
Successors and Assigns; Third Party Beneficiaries. This Agreement, any
Sub-Loan Agreement and the other Sub-Loan Documents shall be binding upon and
inure to the benefit of Borrower and Lender and their respective successors and
assigns; provided that Borrower may not transfer or assign any of
their rights or obligations under this Agreement, any Sub-Loan Agreement or the
other Sub-Loan Documents without the prior written consent of Lender. This
Agreement, any Sub-Loan Agreement and the transactions provided for or
contemplated hereunder thereunder or under any of the Sub-Loan Documents are
intended solely for the benefit of the parties hereto and any of Lender’s
participants in the Obligations. No third party shall have any rights or derive
any benefits under or with respect to this Agreement, any Sub-Loan 

94

Agreement or
the other Sub-Loan Documents except for participants in the Obligations or as
provided in advance in a writing signed on behalf of Lender. No person other
than Borrower, shall have standing to require satisfaction of such conditions
in accordance with their terms or be entitled to assume that Lender will refuse
to make advances in the absence of strict compliance with any or all thereof,
and no other person, other than Borrower, under any circumstance, shall be
deemed to be a beneficiary of such conditions, any and all of which Lender
freely may waive in whole or in part at any time it, in its sole discretion,
deems it desirable to do so. In particular, Lender makes no representation and
assumes no obligation as to third parties concerning the quality of the Work by
Borrower or the absence therefrom of defects. In this connection, Borrower
agrees to and shall indemnify Lender and any of Lender’s participants in the
Obligations from any liability, claim or loss and reasonable attorneys fees and
costs resulting from the disbursement of the Advances or from the condition of
the Applicable Resort, whether related to the quality of the Work or otherwise
and whether arising during or after the term of any Sub-Loan other than for
Lender’s intentional misconduct or gross negligence. This Section shall survive
the repayment of the Obligations and shall continue in full force and effect so
long as the possibility of such liability, claim or loss exists. 

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

          23.9.
Counterparts; Effectiveness; Facsimile. This Agreement, any Sub-Loan
Agreement or any of the Sub-Loan Documents may be signed in any number of
counterparts, each of which shall be an original, with the same effect as if
the signature thereto and hereto were on the same instrument. This Agreement,
any Sub-Loan Agreement and other Sub-Loan Documents shall become effective upon
Lender’s receipt of this Agreement, any Sub-Loan Agreement or Sub-Loan
Documents (as applicable), one or more counterparts, all of which are signed by
Borrower, Lender and any other appropriate Person. Any signature on this
Agreement, any Sub-Loan Agreement or any Sub-Loan Document or any document
collateral thereto, delivered by Borrower or Guarantor by facsimile
transmission shall be deemed to be an original signature thereto. 

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

          23.11.
Total Agreement. This Agreement, any Sub-Loan Agreement, and the other
Sub-Loan Documents, including the Exhibits and Schedules hereto and thereto, is
the entire agreement between the parties relating to the subject matter hereof,

95

incorporates
or rescinds all prior agreements and understandings between the parties hereto
relating to the subject matter hereof, cannot be changed or terminated orally
or by course of conduct, and shall be deemed effective as of the date it is
accepted by Lender at the offices set forth above. 

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

          23.13.
Litigation. TO THE FULLEST EXTENT NOT PROHIBITED BY APPLICABLE LAW WHICH
CANNOT BE WAIVED, BORROWER AND LENDER HEREBY KNOWINGLY, VOLUNTARILY,
INTENTIONALLY AND IRREVOCABLY WAIVE ANY AND ALL RIGHT TO A TRIAL BY JURY IN ANY
ACTION OR PROCEEDING TO ENFORCE OR DEFEND OR CLARIFY ANY RIGHT, POWER, REMEDY
OR DEFENSE ARISING OUT OF OR RELATED TO THIS AGREEMENT, ANY SUB-LOAN AGREEMENT,
THE OTHER SUB-LOAN DOCUMENTS, OR THE TRANSACTIONS CONTEMPLATED HEREIN OR
THEREIN, WHETHER SOUNDING IN TORT OR CONTRACT OR OTHERWISE, OR WITH RESPECT TO
ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR
WRITTEN) OR ACTIONS OF ANY PARTY; AND AGREE THAT ANY SUCH ACTION OR PROCEEDING
SHALL BE TRIED BEFORE A JUDGE AND NOT BEFORE A JURY. BORROWER AND LENDER
FURTHER WAIVE ANY RIGHT TO SEEK TO CONSOLIDATE ANY SUCH LITIGATION IN WHICH A
JURY TRIAL HAS BEEN WAIVED WITH ANY OTHER LITIGATION IN WHICH A JURY TRIAL
CANNOT OR HAS NOT BEEN WAIVED. FURTHER, BORROWER HEREBY CERTIFIES THAT NO
REPRESENTATIVE OR AGENT OF LENDER, NOR LENDER’S COUNSEL, HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT LENDER WOULD NOT, IN THE EVENT OF SUCH LITIGATION,
SEEK TO ENFORCE THIS WAIVER OF RIGHT TO JURY TRIAL PROVISION. BORROWER
ACKNOWLEDGES THAT THE PROVISIONS OF THIS SECTION ARE A MATERIAL INDUCEMENT TO
LENDER’S ACCEPTANCE OF THIS AGREEMENT, ANY SUB-LOAN AGREEMENT AND THE OTHER
SUB-LOAN DOCUMENTS. 

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

          23.14.
Submissions. All documents, agreements, reports, surveys, appraisals,
insurance, financial information or other submissions (collectively, the
“Submissions”) required under any Sub-Loan Agreement or Sub-Loan Documents
shall be in form and content reasonably satisfactory to Lender and performed at
Borrower’s expense. Lender shall have the prior right of approval of any
person, firm or entity responsible for preparing each Submission (a “Preparer”)
and may reject any Submissions if Lender 

96

believes in
its reasonable opinion that the experience, skill, reputation or other aspect
of the Preparer is unsatisfactory in any material respect. All reports and
appraisals related to any Sub-Loan and required pursuant to any of the Sub-Loan
Documents as Lender may specifically request such report or appraisal at the
time of making such Sub-Loan include the following language: 

	
  

	
 

	
 

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

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

          23.16.
Consent to Advertising and Publicity of Documents. Borrower agrees that
Lender and its participants may, subject to prior review and consent of
Borrower, which consent Borrower agrees not to unreasonably withhold or delay,
issue and disseminate to the public information describing the credit
accommodation entered into pursuant to this Agreement and any Sub-Loan
Agreement, including the names and addresses of Borrower and any subsidiaries
and Affiliates, the amount, interest rate, maturity, collateral, and a general
description of Borrower’s business. 

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

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

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

97

and
contribution of Borrower with respect to such obligations shall be deemed to be
an asset of Borrower. 

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

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

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

          23.23.
Time of the Essence. Time is of the essence of this Agreement any
Sub-Loan Agreement. 

          23.24.
Conflict. The provisions of any Applicable Sub-Loan Agreement or other
applicable Sub-Loan Documents shall control in the event of any conflict among
any of them, and this Agreement. 

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

[REMAINDER OF
PAGE INTENTIONALLY LEFT BLANK]

98

          IN
WITNESS WHEREOF, Borrower, Lender, and Guarantor have caused this Agreement to
be duly executed and delivered effective as of the date first above written. 

	
 

	
 

	
 

	
 

	
 

	
LENDER:

	
 

	
 

	
 

	
TEXTRON FINANCIAL CORPORATION, 

 a Delaware corporation

	
 

	
 

	
 

	
By: 

	
 

	
 

	

	
 

	
Name: 

	
 

	
 

	
 

	

	
 

	
Its:

	
 

	
 

	

	
 

	
 

	
 

	
BORROWER:

	
 

	
 

	
 

	
BLUEGREEN VACATIONS UNLIMITED, 

 INC., a Florida corporation

	
 

	
 

	
 

	
By:

	
 

	
 

	

	
 

	
Name:

	
 

	
 

	
 

	

	
 

	
Its:

	
 

	
 

	

	
 

	
 

	
 

	
GUARANTOR:

	
 

	
 

	
 

	
BLUEGREEN CORPORATION, a 

 Massachusetts corporation

	
 

	
 

	
 

	
By:

	
 

	
 

	

	
 

	
Name:

	
 

	
 

	
 

	

	
 

	
Its:

	
 

	
 

	

EXHIBIT A

FORM OF REQUEST FOR ACQUISITION ADVANCE

Date: _____ ___, 2008 

Request #:

Amount of Request: 

Textron
Financial Corporation

45 Glastonbury Blvd.

Glastonbury, CT 06033-4450

Attention: Resort Finance Division 

	
 

	
 

	
 

	
 

	
RE:

	
Master
Acquisition, Development and Construction Loan and Security Agreement dated
as of April __, 2008 and the Applicable Sub-Loan and Security Agreement dated
as of __________ (collectively, the “Loan Agreement”) between
Textron Financial Corporation (the “Lender”) and ________________________
(the “Borrower”), regarding, a USD $___________ Sub-Loan _________________
(the “Sub-Loan”) 

Gentlemen:

          In
accordance with the terms of the Loan Agreement, Borrower desires to obtain an
Acquisition Advance of $__________, the maximum principal balance of the
Sub-Loan for ________________________ on ________________ ( ). Unless otherwise
defined herein, terms used herein shall have the same meaning assigned to such
terms in the Loan Agreement. 

          In
order to induce Lender to make the Sub-Loan with respect to such Advance,
Borrower hereby certifies, represents and warrants the following to Lender: 

          1.          No
Default or Event of Default has occurred under the Loan Agreement, no event has
occurred which, with notice, the passage of time, or both, would constitute an
Event of Default under the Loan Agreement, and no Default or Event of Default
will occur under the Loan Agreement as a result of the Advance requested
herein. 

          2.          Except
for those items that have been waived in writing by Lender, all of Borrower’s
representations and warranties under the Loan Agreement and the other Loan
Documents are true and correct in all material respects as of the date hereof,
and after giving effect to the making of such requested Advance, will be true
and correct as aforesaid as of the date on which such Advance is made. To the
knowledge of Borrower, neither the ___________________________ (the “Resort”),
nor the improvements or any portion thereof, nor Borrower, are under
investigation with respect to, or in violation of, any Environmental Laws. No
proceedings have been commenced against, nor notice received by, the Borrower,
the Mortgaged Property, or the Applicable  

A-1

Association,
concerning any alleged violation of any Environmental Laws with respect
thereto. 

          Neither
Borrower, nor the improvements and renovations, nor the Resort, are or, to the
knowledge of Borrower, have been, the subject of any threatened, proposed or
actual cleanup or other protective or remedial action relating to any Hazardous
Materials, whether pursuant to any Environmental Laws or otherwise. 

          3.          Borrower
is in material compliance with each and every one of its covenants, agreements
and obligations under the Loan Agreement and the other Sub-Loan Documents. 

          4.          Except
as disclosed in Guarantor’s SEC filings and the Loan Agreement, there are no
actions, suits, proceedings, orders or injunctions pending or threatened
against or affecting Borrower, the Guarantor, the Mortgaged Property, the
Sub-Loan Collateral or the Applicable Association at law or in equity, or
before or by any governmental authority or other tribunal which if adversely
determined would have a material adverse effect on their ability to perform
hereunder with respect to the Mortgaged Property. Neither the Borrower, the
Mortgaged Property, nor the operations, marketing or sales conducted with
respect to such Mortgaged Property, are under investigation with respect to the
Applicable Timeshare Documents or the _____________ condominium act or
timeshare act, and the Borrower has received no notification of, nor is the
Borrower aware of, any violations of the _________________ condominium act or
timeshare act, or any other laws or regulations, whether state or federal,
relating to the Mortgaged Property or the marketing or sale of Timeshare
Interests, or the Collateral. 

          5.          Borrower
has no defenses to or offsets against the payment of all amounts due to Lender
under or in connection with the Sub-Loan, or defenses against the performance
of all of Borrower’s Obligations under the Loan Agreement and all of the other
Sub-Loan Documents. 

          6.          The
chief executive office of each of Bluegreen Vacations Unlimited, Inc.,
Bluegreen Corporation and ____________________, and all of their respective
books and records, are located at 4960 Conference Way North, Suite 100, Boca
Raton, FL 33431. 

          7.          At
all times prior to and as of the date hereof, and after giving effect to the
transactions contemplated under the Loan Agreement, including without
limitation, the borrowing of the Loan, the granting of Liens to Lender, in all
of the Sub-Loan Collateral, and the incurring of the Obligations, the total fair
value of each Borrower’s and Bluegreen Corporation’s Properties exceeds the
total amount of its debts, and each Borrower and Bluegreen Corporation is able
to pay and are paying there respective debts as they become due. 

          8          The
information set forth herein (including the exhibits and attachments referenced
herein) is true, correct and complete in all material respects to the best of 

A-2

Borrower’s and
the undersigned’s knowledge and belief, and Borrower acknowledges that, in
connection with making an Advance under the Sub-Loan, Lender is relying on said
information as being certified both on behalf of the Borrower and by the
undersigned, individually, as being true, correct and complete. 

          9.          The
applicable conditions to the making of an Advance set forth in Section 17 of
the Master Facility Agreement have been satisfied as of the date hereof. 

          10.        Borrower
hereby requests an Advance of ___________ to be made only upon confirmation by
Lender of satisfaction, with respect to the only Advance, of all conditions to
the Sub-Loan Closing. The requested Advance should be made in care of: (see
wire transfer instructions attached for the insured closing agent). 

          11.        The
information set forth herein (including the exhibits and attachments referenced
herein) is true, correct and complete in all material respects, and Borrower
acknowledges that, in connection with making an acquisition Advance, Lender is
relying on said information as being certified, both on behalf of Borrower and
the undersigned, individually, as true, correct and complete in all material
respects. 

[SIGNATURE PAGE FOLLOWS]

A-3

	
 

	
 

	
 

	
 

	
Borrower:  

	
 

	
 

	
 

	
BLUEGREEN VACATIONS UNLIMITED, INC., 

	
 

	
a Florida
  corporation

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	

	
 

	
Name:

	
 

	
 

	
 

	

	
 

	
Its:

	
 

	
 

	
 

	

A-4

EXHIBIT B

Form of Officer’s Certificate

Date:_________________

           In
accordance with Section 13.4 of the Master Acquisition Development and
Construction Loan and Security Agreement dated as of April __, 2008, by and
between Bluegreen Vacations Unlimited, Inc. (“Borrower”) and Textron Financial
Corporation (“Lender”) (as it may be amended, modified, supplemented or
restated, the “Loan Agreement”), the undersigned hereby certifies to Lender
that as of the date described above:  

	
 

	
 

	
 

	
 

	
1.

	
The
  undersigned is the chief financial officer of Bluegreen Corporation
  (“Guarantor”). 

	
 

	
 

	
 

	
 

	
2.

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

	
 

	
 

	
 

	
 

	
3.

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

	
 

	
 

	
 

	
 

	
4.

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

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

	
 

	
 

	
 

	
 

	
 

	
BLUEGREEN CORPORATION, a

	
 

	
Massachusetts
  corporation

	
 

	
 

	
 

	
By:

	
 

	
 

	

	
 

	
Name/Title:

	
 

	
 

	

	
Dated:
  ____________________, 200_____

	
 

B-1

EXHIBIT C

List of Sub-Loans

	
 

	
 

	
1.

	
Odyssey
  Dells – November 14, 2006

	
 

	
 

	
2.

	
World Golf Village
  – March 23, 2007

	
 

	
 

	
3.

	
Royal Suites
  At Atlanta Palace – April __, 2008

C-1

EXHIBIT D

Form of Request for Construction Advance

Schedule_____

Request for Advance 

REQUEST FOR ADVANCE NUMBER:_________

DATE OF REQUEST:_________

Textron
Financial Corporation

45 Glastonbury Boulevard

Glastonbury, CT 06033 

	
 

	
 

	
Re:

	
Master
Acquisition, Development and Construction Loan and Security Agreement dated
as of April __, 2008 and the Applicable Sub-Loan and Security Agreement dated
as of _____________ (collectively, the “Loan Agreement”) between Textron
Financial Corporation (the “Lender”) and _________________________ (the
“Borrower”), regarding, a USD $_______________ Sub-Loan (the “Loan”)  

Ladies and
Gentlemen: 

          In
accordance with the terms of the Loan Agreement referenced above, effective
____ ____, 2008, Borrower requests an Advance of (insert total net amount of draw request – hard, soft and FF&E in
USD) $_________________. Unless otherwise defined herein, terms used
with initial capital letters will have the meanings given to them in the Loan
Agreement. The ________________ located at _________________ shall be referred
to as the “Project”).  

          In
order to induce Lender to make such Advance, Borrower hereby represents and
warrants the following to Lender: 

	
 

	
 

	
 

	
 

	
1)

	
The
  requested Advance relates to hard costs and/or soft costs and/or FF&E
  incurred in connection with the development and construction at the Project,
  through and including (insert month-end
  date of period requested or latest invoice date)______________. 

	
 

	
 

	
 

	
 

	
2)

	
To the best
  of Borrower’s knowledge, no Default or Event of Default has occurred under
  the Loan Agreement and no Event of Default will occur because of the Advance
  requested herein. 

	
 

	
 

	
 

	
 

	
3)

	
Borrower’s
  representations and warranties under the Loan Agreement and the other Loan
  Documents are true and correct as of the date hereof, and 

D-1

	
 

	
 

	
 

	
 

	
 

	
after giving
  effect to the making of such requested Advance, will be true and correct as
  of the date on which such Advance is made.

	
 

	
 

	
 

	
 

	
4)

	
Except as
  expressly agreed to in writing by Lender, the applicable conditions to the
  making of the requested Advance as set forth in the Loan Agreement have been
  satisfied as of the date hereof; subject only to issuance of date-down
  endorsement to the Title Policy, with requirements to such endorsement
  satisfied. Borrower has no defenses or offsets with respect to the payment of
  any amounts due Lender. To the best of Borrower’s knowledge, Lender has
  performed all of its obligations to Borrower. 

	
 

	
 

	
 

	
 

	
5)

	
The
  following information is true and correct as of the date hereof and will be
  true and correct as of the date on which the requested Advance is to be made (reflect all values in USD’s): 

	
 

	
 

	
 

	
 

	
 

	
(a)

	
  All approved
  costs, as reflected in the Initial Project Budget, (insert once final)

	
 

	
 

	
(b)

	
  Initial
  Equity Requirement (per Loan Agreement)

	
 

	
 

	
(c)

	
  Approved
  increase to Initial Project Budget (if,
  any)

	
 

	
 

	
(d)

	
  Additional
  required Equity,(if, any)

	
 

	
 

	
(e)

	
  Maximum Loan
  Amount (per Loan Agreement)

	
 

	
 

	
(f)

	
  Aggregate
  original principal amounts of all Advances to date (cumulative sum)

	
 

	
 

	
(g)

	
  Maximum
  Availability (e. minus f.)

	
 

	
 

	
(h)

	
  Amount of
  this Requested Advance

	
 

	
 

	
 

	
 

	
 

	
6)

	
Accompanying
this Request for Advance is Borrower’s Construction Cost Certifications (Exhibit 2-Hard Costs or G-703 and Exhibit 3-Soft
Costs and FF&E) and General Contractor’s completed Application
and Certificate for Payment (Exhibit
1-Hard Costs or G-702) (“Draw Certifications”). The Draw
Certifications include:  

	
 

	
 

	
 

	
 

	
(a)

	
a detailed
breakdown of the requested disbursement including the percentage of
completion of each item and the balance remaining to complete each item, (Exhibit 2-Hard Costs or G-703 and Exhibit 3-Soft
Costs and FF&E), 

	
 

	
 

	
 

	
 

	
(b)

	
supporting
  invoices of Contractors, subcontractors and suppliers(as is consistent with the Loan Agreement section
  11),

	
 

	
 

	
 

	
 

	
(c)

	
copies of
  receipts or other evidence of payment (as
  is consistent with the Loan Agreement section 11) for all bills or
  statements for supplies, materials or expenses for which the Advance is
  requested are attached hereto,

	
 

	
 

	
 

	
 

	
(d)

	
a Budget
  Amendment Form (Exhibit 5), for
  each Request for Advance either certifying no changes have been made or that
  there may be pending changes,

	
 

	
 

	
 

	
 

	
(e)

	
a Transfer
  of Budgeted Line Items form (Exhibit 6)

D-2

	
 

	
 

	
 

	
 

	
(f)

	
Verification
  of amounts on accounting reports evidencing all payments including check
  numbers incurred in connection with the development and construction of the
  Project;

	
 

	
 

	
 

	
 

	
7)

	
Also
  attached hereto is a list of known or anticipated change orders in the Plans
  and Specifications or deviations from the Development Draw Schedule or
  Development Schedule. 

	
 

	
 

	
 

	
 

	
8)

	
The hard,
  and/or soft and/or FF&E costs reflected in the Draw Certifications, which
  are the subject of the requested Advance, have been approved by the Lender
  and are consistent with the Development Budget. 

	
 

	
 

	
 

	
 

	
9)

	
The
  requested Advance will be used and applied only for the purposes specified in
  the Draw Certifications. 

	
 

	
 

	
 

	
 

	
10)

	
Construction
  of the Project is progressing satisfactorily so as to ensure the timely
  completion thereof in accordance with the plans and specifications by the
  Required Completion Date and
  nothing has occurred subsequent to the date of the Loan Agreement which has
  or may result in the creation of any lien, charge or encumbrance upon the
  Project or any part thereof or which has or may substantially and adversely
  impair the ability of the Borrower to make all payments of principal and
  interest on the Loan or which has or may substantially and adversely impair
  the financial standing of the Borrower or of any Guarantor 

	
 

	
 

	
 

	
 

	
11)

	
If any
  offers to lease, leases, or interim agreements are in effect or have been
  executed by the Borrower covering the Project, the said offers to lease, leases,
  or interim agreements are in full force and effect and the Borrower has not
  breached any provisions thereof and has received no notice or other
  communication (written or oral) from any other party thereto notifying
  Borrower of a breach or alleged breach 

	
 

	
 

	
 

	
 

	
12)

	
All of the
  statements contained in this Request for Advance, and all of the information
  contained in the exhibits and other attachments hereto, are true, complete
  and accurate in all respects as of the date hereof and to the best of my
  knowledge, information and belief, all persons, firms or corporations
  whatsoever who have furnished material or performed any work or services in
  connection with the Project have been fully paid up to the day of (insert month-end date of period requested or latest
  invoice date)_____________

	
 

	
 

	
 

	
 

	
13)

	
Any and all
  funds received from the Lender previously as Advances under the Loan
  Agreement have been expended or are being held in trust in a specially
  designated account for the sole purpose of paying the costs for which they
  were advanced; no item of construction costs previously certified to the
  Lender with a Request for Advance remains unpaid as of the date of this
  Certificate; and no part of the said funds has been used, or the funds to be 

D-3

	
 

	
 

	
 

	
 

	
 

	
received pursuant
  to the Request for Advance submitted herewith shall be used for any other
  purposes.

	
 

	
 

	
 

	
 

	
14)

	
The
  requested Advance should be disbursed as follows:

	
 

	
 

	
 

	
 

	
 

	
Payee

	
 

	
Address

	
 

	
Amount

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Total to
  be advanced (should to amount in section 5.h. above

	
 

	
 

	
 

	
 

	
 

	
 

	
15)

	
The Lender
  is hereby irrevocably authorized and directed to deduct from the gross
  proceeds of this advance and to pay all accrued and unpaid interest on the
  subject Loan to the date of the advance and all fees, disbursements and other
  costs or charges payable by the Borrower pursuant to the Loan Agreement. This
  Request for Advance is made for the purpose of inducing the Lender to make
  this Advance pursuant to the Loan Agreement and the Borrower is aware that
  the Lender will be relying on the statements herein contained and contained
  in the Schedules hereto.

I HAVE MADE
THIS SOLEMN DECLARATION, CONSCIENTIOUSLY BELIEVING IT TO BE TRUE AND KNOWING
THAT IT IS OF THE SAME FORCE AND EFFECT AS IF MADE UNDER OATH. 

	
 

	
 

	
 

	

	
 

	
 

	
By (Signature of authorized signor):

	
 

	
 

	

	
By (Printed name of authorized signor):

	
 

	
 

	

D-4

EXHIBIT E

FORM OF TFC’S
INSPECTOR SUB-LOAN CONSTRUCTION COST CERTIFICATE

 DATE: _________________, 200_

 TO: TEXTRON FINANCIAL CORPORATION (“LENDER”)

 FROM: _______________________________ (“LENDER’S
INSPECTOR”)

	
  

	
  

	
 RE:

	
 Certification For Development Advances Under That Certain Master
 Acquisition, Development and Construction Loan and Security Agreement dated
 as of April __, 2008 and the Applicable Sub-Loan and Security Agreement
 dated as of _____________ (collectively, the “Loan Agreement”) between
 Textron Financial Corporation (the “Lender”) and
 _________________________ (the “Borrower”), regarding, a USD
 $_______________ Sub-Loan ____________________ (the “Loan”)

           The
undersigned Lender’s Inspector, certifies to Lender that (a) this certificate
is being issued in connection with the Construction Cost Certificate to which
this certificate is attached and (b) each of the following statements is true
and correct:

           (i)          Lender’s
Inspector has inspected the Property and reviewed the aforesaid Construction
Cost Certificate and the attachments thereto, 

           (ii)         the
aforesaid Construction Cost Certificate and the attachments thereto are
satisfactory to Lender’s Inspector,

           (iii)        based
on the information we have been provided and our review of the project, the
construction at the Mortgaged Property has been in accordance with the Plans
and Specifications and Licenses and Permits, 

           (iv)        based
on the information we have been provided and our review of the project, the
unexpended construction portion of the Development Budget appears reasonably
adequate to complete the Construction of the Project, 

            (v)         $____________,
which Lender’s Inspector understands is the aggregate principal amount of the
Development Advances currently outstanding and used to finance development and
Hard Costs and Soft Costs, is less than the aggregate cost of the Construction
work currently in place, 

            (vi)        based
on the Contractor’s provision of the latest construction schedule dated ____
and our review of the project, the Completion of Construction can reasonably be
expected to occur on or before _________________________, and

E-1

           (vii)       based
on the information we have been provided and our review of the project, the
only modifications or changes to the Plans and Specifications, or Development
Budget or projected 

 Development Schedule not previously disclosed in a prior Construction
Cost Certificate are set forth below:

[Disclosures - Include Change
Orders]

	
  

	
  

	
  

	
  

	
  

	
  

	
 LENDER’S
 INSPECTOR:

	
  

	
  

	
  

	
  

	
  

	
  

	
  

	
  

	
  

	

	
  

	
  

	
  

	
  

	
  

	
  

	
  

	
  

	
  

	
  

	
  

	
 By

	
  

	
  

	
  

	
  

	
  

	

	
  

	
  

	
  

	
  

	
      Name:

	
  

	
  

	
  

	
  

	
      Title:

E-2

EXHIBIT F

FORM OF
SUB-LOAN DRAW CERTIFICATE OF THE GENERAL CONTRACTOR

 DATE: ________________, 200_

	
  

	
  

	
 TO:

	
 TEXTRON FINANCIAL CORPORATION (“LENDER”) AND _________________
 (“BORROWER”) 

 FROM: __________________________________ (“GENERAL
CONTRACTOR”)

	
  

	
  

	
 RE:

	
 Certification for Development Advances Under that Certain Master
 Acquisition, Development and Construction Loan and Security Agreement dated
 as of April __, 2008 and the Applicable Sub-Loan and Security Agreement
 dated as of _____________ (collectively, the “Loan Agreement”) between
 Textron Financial Corporation (the “Lender”) and
 _________________________ (the “Borrower”), regarding, a USD
 $_______________ Sub-Loan ___________ (the “Loan”)

           The
undersigned contractor, as the General Contractor, certifies to each of the
Borrower and the Lender that each of the following is true and correct:

	
  

	
  

	
  

	
 (a)          The
 construction at the property described in Schedule A attached hereto (“Mortgaged
 Property”) has been in accordance with the Construction Documents (as
 such term is defined in the Construction Contract between Borrower and
 General Contractor). 

	
  

	
  

	
  

	
 (b)          The
 undersigned General Contractor has fully paid for (except in respect of
 contractually permitted Retainages) all of the work, labor, fuel, materials
 and/or equipment furnished by it or by its subcontractors, materialmen and/or
 suppliers in respect of the Construction at the Mortgaged Property, or the
 progress payments in respect thereof, as the case may be, through each of the
 dates for each prior application and certificate for which the undersigned
 General Contractor has been paid prior to the date of this certificate. 

	
  

	
  

	
  

	
 (c)          Upon
 request of Lender, the copies of canceled checks, paid-in-full invoices or
 other evidence of payment attached hereto are bona fide evidence of the
 payment in full of the subcontractors, materialmen and/or suppliers referred
 to in clause (b) above in respect of the work of such persons described in
 clause (b) above.

	
  

	
  

	
  

	
 (d)          Upon
 request of Lender, the copies of invoices and other documentation attached
 hereto are bona fide evidence of the amount of work, labor, fuel, materials
 and/or equipment actually done, supplied or completed in respect of the
 payments referred to in clause (c) above and valid mechanic’s, materialman’s
 and laborer’s unconditional lien waivers for work funded in prior months or
 prior draw

F-1

	
  

	
  

	
  

	
 requests and conditional lien waivers or releases attached hereto
 or previously delivered cover all of the aforesaid work, labor, fuel,
 materials and/or equipment.

	
  

	
  

	
 (e)          Upon
 request of Lender, the copies of the invoices, bills or other evidence of the
 costs of the undersigned General Contractor and the costs of its
 subcontractors, materialmen and/or suppliers and/or applications for payment
 submitted by it and by its subcontractors for progress payments which, in
 each case, are to be satisfied (less any retained amount thereof), in whole
 or part, with the Development Advances (as defined in the Loan Agreement)
 contemplated to be made in connection with this certificate and which are
 attached hereto are bona fide evidence of the amount or amounts owed to the
 undersigned contractor and to such subcontractors, materialmen and suppliers
 for work completed [since the last Loan Draw Certificate submitted by the
 undersigned General Contractor][since the commencement of Construction]. 

	
  

	
  

	
  

	
 (f)          The
 mechanic’s, materialman’s and laborer’s progress lien waivers or releases
 attached hereto cover all of the costs of such mechanics, materialmen and
 laborers which have been paid with all prior Development Advances and have
 not previously been furnished to Lender.

	
  

	
  

	
  

	
 (g)          There
 have been no change orders to the Construction Contract except
 ___________________________________; all approvals for such change orders
 have been obtained in accordance with the Loan Agreement, Construction
 Documents, Plans and Specifications and Licenses and Permits.

	
  

	
  

	
  

	
 (h)          The
 construction schedule is being met and has not been delayed
 except_____________________________________.

F-2

           References
above to subcontractors, materialmen and suppliers shall mean and include any
subcontractor, materialman or supplier having a contract to supply in the
aggregate, or actually supplying in the aggregate, $_____________ or more of
labor, materials and/or supplies.

	
  

	
  

	
  

	
 GENERAL CONTRACTOR:

	
  

	
  

	
  

	

	
  

	
  

	
  

	
 By

	
  

	

	
  

	
 Title

	
  

	

F-3

Schedule A

Legal Description of Mortgaged Property

F-4

Schedule 9.10

List of Actions, Suits, and Proceedings
Against Guarantor (the “Company”)

          
                  Any legal proceedings as disclosed in Guarantor’s most recently filed 10K Statement.

Schedule 9.23

Names and Addresses

	
  

	
 Bluegreen
 Vacations Unlimited, Inc.

	
 4960
 Conference Way North

	
 Suite 100

	
 Boca Raton,
 Florida 33431

	
  

	
 Bluegreen
 New Jersey, LLC

	
 4960
 Conference Way North

	
 Suite 100

	
 Boca Raton,
 Florida 33431Exhibit 10.195

Final

STANDARD DEFINITIONS

                    “50/50
Loan” shall mean a Timeshare Loan where the Obligor has elected to make a
down payment equal to at least 50% of the total purchase price of the Timeshare
Property or Timeshare Properties with the remaining balance (together with
interest) due within one year of the origination date, such balance to be paid
either in 12 monthly amortizing installments of principal and interest or all
principal and interest due in a lump sum payment on the one year anniversary of
the origination of the Timeshare Loan. 

                    “ACH
Form” shall mean the ACH authorization form executed by Obligors
substantially in the form attached as Exhibit C to each of the Sale Agreement,
the Transfer Agreement and the Bluegreen Purchase Agreement. 

                    “Act”
shall have the meaning specified in Section 1.4 of the Indenture. 

                    “Additional
Servicing Compensation” shall mean any late fees related to late payments
on the Timeshare Loans, any non-sufficient funds fees, any processing fees, any
Liquidation Expenses collected by and due to the Servicer and any unpaid
out-of-pocket expenses incurred by the Servicer during the related Due Period. 

                    “Adjusted
Note Balance” shall equal, for any Class of Notes, the Outstanding Note
Balance of such Class of Notes immediately prior to such Payment Date, less any
Note Balance Write-Down Amounts previously applied in respect of such Class of
Notes; provided, however, to the extent that for purposes of consents,
approvals, voting or other similar acts of the Noteholders under any of the
Transaction Documents, “Adjusted Note Balance” shall exclude Notes which are
held by Bluegreen or any Affiliate thereof, if any. 

                    “Administration
Agreement” shall mean the administration agreement, dated as of March 15,
2008, by and among the Administrator, the Owner Trustee, the Issuer and the
Indenture Trustee, as amended, supplemented or otherwise modified from time to
time in accordance with the terms thereof. 

                    “Administrator”
shall mean Bluegreen or any successor under the Administration Agreement. 

                    “Administrator
Fee” shall equal on each Payment Date an amount equal to the product of (i)
one-twelfth and (ii) (A) if Bluegreen or an affiliate thereof is the
Administrator, $1,000.00 and (B) if Wilmington Trust Company is the
Administrator, $20,000.00. 

                    “Adverse
Claim” shall mean any claim of ownership or any lien, security interest, title
retention, trust or other charge or encumbrance, or other type of preferential
arrangement having the effect or purpose of creating a lien or security
interest, other than the interests created under the Indenture or any other
Transaction Document in favor of the Indenture Trustee and the Noteholders. 

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

                    “Aggregate
Closing Date Collateral Balance” is an amount equal to $68,571,428.57. 

                    “Aggregate
Initial Note Balance” is equal to the sum of the Initial Note Balances for
all Classes of Notes. 

                    “Aggregate
Loan Balance” means the sum of the Loan Balances for all Timeshare Loans
(other than Defaulted Timeshare Loans). 

                    “Aggregate
Outstanding Note Balance” is equal to the sum of the Outstanding Note
Balances for all Classes of Notes. 

                    “Aruba
Club Loans” shall mean all timeshare loans originated by the Aruba
Originator on or after January 26, 2004 each secured by Co-op Shares. 

                    “Aruba
Originator” shall mean Bluegreen Properties, N.V., an Aruba corporation. 

                    “Assignment
of Mortgage” shall mean, with respect to a Deeded Club Loan, a written
assignment of one or more Mortgages from the related Originator or Seller to
the Indenture Trustee, for the benefit of the Noteholders, relating to one or
more Timeshare Loans in recordable form, and signed by an Authorized Officer of
all necessary parties, sufficient under the laws of the jurisdiction wherein
the related Timeshare Property is located to give record notice of a transfer
of such Mortgage and its proceeds to the Indenture Trustee. 

                    “Association”
shall mean the not-for-profit corporation or cooperative association responsible
for operating a Resort. 

                    “Assumption
Date” shall have the meaning specified in the Backup Servicing Agreement. 

                    “Authorized
Officer” shall mean, with respect to any corporation, limited liability
company or partnership, the Chairman of the Board, the President, any Senior
Vice President,

- 2 -

any Vice
President, the Secretary, the Treasurer, any Assistant Secretary, any Assistant
Treasurer, managing member, board of managers and each other officer of such
corporation or limited liability company or the general partner of such
partnership specifically authorized in resolutions of the board of directors or
board of managers of such corporation or limited liability company, as the case
may be, to sign agreements, instruments or other documents in connection with
the Indenture on behalf of such corporation, limited liability company or
partnership, as the case may be. 

                    “Available
Funds” shall mean for any Payment Date, (A) all funds on deposit in the
Collection Account after making all transfers, deposits or payments from (i)
the Lockbox Account pursuant to the Lockbox Agreement, (ii) the General Reserve
Account pursuant to Section 3.2(b) of the Indenture, (iii) the Prefunding
Account pursuant to Section 3.2(c) of the Indenture, (iv) the Capitalized
Interest Account pursuant to Section 3.2(d) of the Indenture (v) the Club
Originator or the Depositor, as the case may be, pursuant to Section 4.6 of the
Indenture, and (vi) the Servicer pursuant to the Indenture, plus (B) all
investment earnings on funds on deposit in the Collection Account from the
immediately preceding Payment Date through such Payment Date, if any, less (C)
amounts on deposit in the Collection Account related to collections related to
any Due Periods subsequent to the Due Period related to such Payment Date, less
(D) any Additional Servicing Compensation on deposit in the Collection Account,
less (E) Misdirected Deposits, if any. Notwithstanding anything in the
Transaction Documents to the contrary, Available Funds shall only include
amounts described in the foregoing sentence and not amounts otherwise deposited
voluntarily by Bluegreen or any of its Affiliates.

                    “Backup
Servicer” shall mean Concord Servicing Corporation, an Arizona corporation,
and its permitted successors and assigns. 

                    “Backup
Servicing Agreement” shall mean the backup servicing agreement, dated as of
March 15, 2008, by and among the Issuer, the Depositor, the Servicer, the Backup
Servicer and the Indenture Trustee, as the same may be amended, supplemented or
otherwise modified from time to time in accordance with the terms thereof. 

                    “Backup
Servicing Fee” shall on each Payment Date (so long as Concord Servicing
Corporation is the Backup Servicer), be equal to: 

                    (A)
prior to the removal or resignation of Bluegreen, as Servicer, the greater of
(i) $750.00 and (ii) the product of (1)(x) $0.10 and (y) the number of
Timeshare Loans in the Trust Estate at the end of the related Due Period up to
20,000 and (2)(x) $0.075 and (y) the number of Timeshare Loans in the Trust
Estate at the end of the related Due Period in excess of 20,000, and 

                    (B)
after the removal or resignation of Bluegreen, as Servicer, an amount equal to
the product of (i) one-twelfth of 1.50% and (ii) the aggregate Loan Balance as
of the first day of the related Due Period. 

                    “Bankruptcy
Code” shall mean the federal Bankruptcy Code, as amended (Title 11 of the
United States Code). 

- 3 -

                    “Beneficiary”
shall be as defined in the Club Trust Agreement. 

                    “Benefit
Plan” shall mean an “employee benefit plan” as defined in Section 3(3) of
ERISA, or any other “plan” as defined in Section 4975(e)(1) of the Code, that
is subject to the prohibited transaction rules of ERISA or of Section 4975 of
the Code or any plan that is subject to any substantially similar provision of
federal, state or local law. 

                    “Bluegreen”
shall mean Bluegreen Corporation, a Massachusetts corporation, and its
permitted successors and assigns. 

                    “Bluegreen
Owned Resorts” shall mean a Resort even if Bluegreen no longer owns
substantial vacation ownership interests in the Resort and includes the
following resorts: Casa del Mar Resort, Daytona SeaBreezeTM, The Fountains
(f/k/a Oasis Lakes Resort), Grande VillasTM at World Golf Village®,
The Hammocks at MarathonTM Resort, Orlando’s Sunshine ResortTM,
Solara SurfsideTM Resort, Mountain Run at BoyneTM, The Falls VillageTM
Resort, The Suites at HersheyTM, Carolina GrandeTM, Harbour LightsTM Resort,
SeaGlass TowerTM, The Lodge Alley InnTM, Shore Crest Vacation VillasTM,
Laurel CrestTM Resort, MountainLoftTM Resort, Shenandoah
CrossingTM, Bluegreen Wilderness Traveler at ShenandoahTM,
Christmas Mountain VillageTM, Odyssey DellsTM and La Cabana Resort
and any Future Resorts in which Bluegreen acquired or developed a significant
number of the vacation ownership interests associated with the Resort. 

                    “Bluegreen
Purchase Agreement” shall mean the purchase and contribution agreement,
dated as of March 15, 2008, between the Club Originator and the Depositor
pursuant to which the Club Originator sells Timeshare Loans and the Closing
Date Eligible Investments to the Depositor on the Closing Date and Subsequent
Timeshare Loans during the Prefunding Period. 

                    “Book-Entry
Note” shall mean a beneficial interest in the Notes, ownership and
transfers of which shall be made through book-entries by the Depository. 

                    “Boyne
Resort” shall mean the Resort located in Michigan known as Mountain Run at
BoyneTM. 

                    “Business
Day” shall mean any day other than (i) a Saturday, a Sunday, or (ii) a day
on which banking institutions in New York City, Wilmington, Delaware, the State
of Florida, the city in which the Servicer is located or the city in which the
Corporate Trust Office of the Indenture Trustee is located, are authorized or
obligated by law or executive order to be closed. 

                    “BXG
Timeshare I” shall mean BXG Timeshare Trust I, a Delaware statutory trust. 

                    “Capitalized
Interest Account” shall mean the account maintained by the Indenture
Trustee pursuant to Section 3.2(d) of the Indenture. 

                    “Capitalized
Interest Account Initial Deposit” shall equal $19,699.96.

- 4 -

                    “Capitalized
Interest Requirement” shall mean for each Determination Date during the
Prefunding Period, an amount equal to the product of (i) one-twelfth of the
weighted average Note Rates of each Class of Notes and (ii) the amount on
deposit in the Prefunding Account. 

                    “Casa
del Mar Resort” shall mean the Resort located in Florida known as Casa del
Mar Beach Resort. 

                    “Cede
& Co.” shall mean the initial registered holder of the Notes, acting as
nominee of The Depository Trust Company. 

                    “Certificate”
shall mean the Residual Interest Certificate. 

                    “Certificate
Distribution Account” shall have the meaning specified in Section 5.01 of
the Trust Agreement. 

                    “Certificate
of Trust” shall mean the Certificate of Trust in the form attached as
Exhibit A to the Trust Agreement.  

                    “Certificateholders”
shall mean the holders of the Certificate. 

                    “Class”
shall mean, as the context may require, any of the Class A Notes, the Class B
Notes, the Class C Notes, the Class D, the Class E Notes, the Class F Notes or
the Class G Notes. 

                    “Class
A Notes” shall have the meaning specified in the Recitals of the Issuer in
the Indenture. 

                    “Class
B Notes” shall have the meaning specified in the Recitals of the Issuer in
the Indenture. 

                    “Class
C Notes” shall have the meaning specified in the Recitals of the Issuer in
the Indenture. 

                    “Class
D Notes” shall have the meaning specified in the Recitals of the Issuer in
the Indenture. 

                    “Class
E Notes” shall have the meaning specified in the Recitals of the Issuer in
the Indenture. 

                    “Class
F Notes” shall have the meaning specified in the Recitals of the Issuer in
the Indenture. 

                    “Class
G Notes” shall have the meaning specified in the Recitals of the Issuer in
the Indenture. 

                    “Closing
Date” shall mean March 31, 2008. 

- 5 -

                    “Closing
Date Resorts” shall mean those Bluegreen Owned Resorts in respect of which
the Timeshare Property related to an Initial Timeshare Loan is located. 

                    “Closing
Date Eligible Investments” shall mean those certain Eligible Investments
listed in the Schedule of Eligible Investments sold on the Closing Date by
Bluegreen to the Depositor pursuant to the Bluegreen Purchase Agreement and by
the Depositor to the Issuer pursuant to the Sale Agreement. 

                    “Club”
shall mean Bluegreen Vacation Club Trust, formed pursuant to the Club Trust
Agreement, doing business as Bluegreen Vacation Club. 

                    “Club
Loans” means, collectively, the Deeded Club Loans and the Aruba Club Loans.

                    “Club
Management Agreement” shall mean that certain Amended and Restated
Management Agreement between the Club Managing Entity and the Club Trustee,
dated as of May 18, 1994, as amended from time to time. 

                    “Club
Managing Entity” shall mean 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
Originator” shall mean Bluegreen, in its capacity as an Originator. 

                    “Club
Property” shall mean Timeshare Properties, Owner Beneficiary Rights and
Vacation Points, and with respect to the definition of Upgrade, may also mean,
as applicable, timeshare property unrelated to Timeshare Loans subject to the
Lien of the Indenture. 

                    “Club
Trust Agreement” shall mean, collectively, that certain Bluegreen Vacation
Club Trust Agreement, dated as of May 18, 1994, by and between the Developer
and the Club Trustee, as amended, restated or otherwise modified from time to
time, together with all other agreements, documents and instruments governing
the operation of the Club. 

                    “Club
Trustee” shall mean Vacation Trust, Inc., a Florida corporation, in its
capacity as trustee under the Club Trust Agreement, and its permitted
successors and assigns. 

                    “Code”
shall mean the Internal Revenue Code of 1986, as amended from time to time and
any successor statute, together with the rules and regulations thereunder. 

                    “Collection
Account” shall mean the account established and maintained by the Indenture
Trustee pursuant to Section 3.2(a) of the Indenture. 

                    “Collection
Policy” shall mean the collection policies of the initial servicer in
effect on the Closing Date attached as Exhibit K to the Indenture, as may be
amended from time to time in accordance with the Servicing Standard.  

- 6 -

                    “Completed
Unit” shall mean a Unit at a 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. 

                    “Confidential
Information” means information obtained by any Noteholder including,
without limitation, the Preliminary Confidential Offering Circular dated March
24, 2008 or the Confidential Offering Circular dated March 28, 2008 related to
the Notes and the Transaction Documents, that is proprietary in nature and that
was clearly marked or labeled as being confidential information of the Issuer,
the Servicer or their Affiliates, provided that such term does not include
information that (a) was publicly known or otherwise known to the Noteholder
prior to the time of such disclosure, (b) subsequently becomes publicly known
through no act or omission by such Noteholder or any Person acting on its
behalf, (c) otherwise becomes known to the Noteholder other than through
disclosure by the Issuer, the Servicer or their Affiliates or (d) any other
public disclosure authorized by the Issuer or the Servicer. 

                    “Continued
Errors” shall have the meaning specified in Section 5.4 of the Indenture. 

                    “Co-op
Shares” shall mean a share certificate issued by the timeshare cooperative
association of La Cabana Resort. 

                    “Corporate
Trust Office” shall mean the office of the Indenture Trustee located in the
State of Minnesota, which office is at the address set forth in Section 13.3 of
the Indenture. 

                    “Credit
Card Account” shall mean the deposit account (account number 005562563831) established
at the Lockbox Bank, which shall be a non-interest bearing account. 

                    “Credit
Card Timeshare Loan” shall mean a Timeshare Loan where the Obligor makes
its payments due on such Timeshare Loan with credit card payment arrangements. 

                    “Credit
Policy” shall mean the credit and underwriting policies of the Originators
in effect on the Closing Date attached as Exhibit C to the Indenture.  

                    “Custodial
Agreement” shall mean the custodial agreement, dated as of March 15, 2008
by and among the Issuer, the Depositor, the Servicer, the Backup Servicer, and
the Indenture Trustee and Custodian, as the same may be amended, supplemented
or otherwise modified from time to time in accordance with the terms thereof
providing for the custody and maintenance of the Timeshare Loan Documents
relating to the Timeshare Loans. 

                    “Custodian”
shall mean U.S. Bank National Association, a national banking association, or
its permitted successors and assigns. 

                    “Custodian’s
Certification” shall have the meaning specified in Section 2.2(a) of the
Custodial Agreement. 

                    “Custodian
Fees” shall mean for each Payment Date, the fee payable by the Issuer to
the Custodian in accordance with Section 2.4 of the Custodial Agreement.

- 7 -

                    “Cut-Off
Date” shall mean, with respect to (i) the Initial Timeshare Loans, the
Initial Cut-Off Date, and (ii) any Qualified Substitute Timeshare Loan or
Subsequent Timeshare Loan, the related Subsequent Cut-Off Date. 

                    “Cut-Off
Date Loan Balance” shall mean the Loan Balance of a Timeshare Loan on its
related Cut-Off Date. 

                    “Deeded
Club Loan” shall mean a Timeshare Loan originated by the Club Originator
and evidenced by a Mortgage Note and secured by a first Mortgage on a
fractional fee simple timeshare interest in a Unit or an undivided interest in
a Resort (or a phase thereof) associated with a Unit. 

                    “Default”
shall mean an event which, but for the passage of time, would constitute an
Event of Default under the Indenture. 

                    “Default
Level” shall mean for any Due Period, the aggregate Loan Balance (without
regard to recoveries) of Timeshare Loans that became Defaulted Timeshare Loans
during such Due Period and not repurchased or substituted by the last day of
such Due Period (less the Loan Balances of Defaulted Timeshare Loans that
subsequently became current during such Due Period which are still subject to
the Lien of the Indenture at such time) divided by the Aggregate Loan Balance
on the first day of such Due Period, expressed as a percentage. 

                    “Defaulted
Timeshare Loan” is a Timeshare Loan (i) for which, the Servicer has commenced
cancellation or termination proceedings on the related Timeshare Loan after
collection efforts have failed in accordance with its credit and collection
policies, (ii) for which, all or part of a scheduled payment under the
Timeshare Loan is more than 120 days delinquent from the due date, provided,
that with respect to this clause (ii), if a Timeshare Loan is not more than 120
days delinquent as of the last day of the Due Period, it shall not be a
Defaulted Timeshare Loan as of that date, or (iii) that otherwise ceases to be
an Eligible Timeshare Loan. 

                    “Defective
Timeshare Loan” shall have the meaning specified in Section 4.6 of the
Indenture. 

                    “Deferred
Interest Amount” shall mean, with respect to a Class of Notes and a Payment
Date, the sum of (i) interest accrued at the related Note Rate during the
related Interest Accrual Period on such Note Balance Write-Down Amounts applied
in respect of such Class and (ii) any unpaid Deferred Interest Amounts from any
prior Payment Date, together with interest thereon at the applicable Note Rate
from the date any such Note Balance Write-Down Amount was applied in respect of
such Class, to the extent permitted by law. 

                    “Definitive
Note” shall have the meaning specified in Section 2.2 of the Indenture. 

                    “Delinquency
Level” shall mean for any Due Period, the sum of the Loan Balances of
Timeshare Loans (other than Defaulted Timeshare Loans) that are 61 days or more
delinquent on the last day of such Due Period divided by the Aggregate Loan
Balance on the first day of such Due Period (expressed as a percentage).

- 8 -

                    “Depositor”
shall mean BRFC 2008-A LLC, a Delaware limited liability company, and its
permitted successors and assigns. 

                    “Depository”
shall mean an organization registered as a “clearing agency” pursuant to
Section 17A of the Securities Exchange Act of 1934, as amended. The initial
Depository shall be The Depository Trust Company. 

                    “Depository
Agreement” shall mean the letter of representations dated as of March 28,
2008, by and among the Issuer, the Indenture Trustee and the Depository. 

                    “Depository
Participant” shall mean a securities broker or dealer, bank, trust company,
clearing corporation, other financial institution or other Person for whom from
time to time a Depository directly or indirectly effects book-entry transfers
and pledges securities deposited with the Depository. 

                    “Determination
Date” shall mean, with respect to any Payment Date, the day that is five
Business Days prior to such Payment Date. 

                    “Developer”
shall mean Bluegreen Vacations Unlimited, Inc., a Florida corporation, and its
permitted successors and assigns. 

                    “DTC”
shall mean The Depository Trust Company, and its permitted successors and
assigns. 

                    “Due
Period” shall mean with respect to any Payment Date, the period from the 16th
day of the second preceding calendar month to the 15th day of
the preceding calendar month. The Due Period for the Initial Payment Date,
shall be the period from and including March 16, 2008 to April 15, 2008. 

                    “Early
Amortization Event” shall occur on a Determination Date if the average of
the Default Levels for the last three Due Periods exceeds 0.60% and shall
continue until the Default Level is equal to or less than 0.60% for three
consecutive Due Periods. 

                    “Eligible
Bank Account” shall mean a segregated account, which may be an account
maintained by the Indenture Trustee, which is either (a) maintained with a
depositary institution or trust company whose long-term unsecured debt
obligations are rated at least “A” by Fitch and “A2” by Moody’s and whose
short-term unsecured obligations are rated at least “A-1” by Fitch and “P-1” by
Moody’s; or (b) a trust account or similar account maintained at the corporate
trust department of the Indenture Trustee held in the name of and for the benefit
of the Noteholders. 

                    “Eligible
Investments” shall mean one or more of the following: 

	
 

	
 

	
 

	
          (a)          obligations
 of, or guaranteed as to timely payment of principal and interest by, the
 United States or any agency or instrumentality thereof when such obligations
 are backed by the full faith and credit of the United States; 

- 9 -

	
 

	
 

	
 

	
          (b)          federal
 funds, certificates of deposit, time deposits and bankers’ acceptances, each
 of which shall not have an original maturity of more than 90 days, of any
 depository institution or trust company incorporated under the laws of the
 United States or any state; provided that the long-term unsecured debt
 obligations of such depository institution or trust company at the date of
 acquisition thereof have been rated by each Rating Agency in one of the three
 highest rating categories available from S&P and no lower than A2 by
 Moody’s; and provided, further, that the short-term obligations of such
 depository institution or trust company shall be rated in the highest rating
 category by S&P or Moody’s, as the case may be; 

	
 

	
 

	
 

	
          (c)          commercial
 paper or commercial paper funds (having original maturities of not more than
 90 days) of any corporation incorporated under the laws of the United States
 or any state thereof; provided that any such commercial paper or commercial
 paper funds shall be rated in the highest short-term rating category by each
 of S&P and Moody’s; 

	
 

	
 

	
 

	
          (d)          any
 no-load money market fund rated (including money market funds managed or
 advised by the Indenture Trustee or an Affiliate thereof) in the highest
 short-term rating category or equivalent highest long-term rating category by
 each of S&P and Moody’s; provided that, Eligible Investments purchased
 from funds in the Eligible Bank Accounts shall include only such obligations
 or securities that either may be redeemed daily or mature no later than the
 Business Day next preceding the next Payment Date; or 

	
 

	
 

	
 

	
          (e)          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 thereof and subject to supervision and
 examination by federal and/or state authorities, so long as, at the time of
 such investment, the commercial paper or other short-term deposits of such
 depository institution or trust company are rated at least P-1 by Moody’s and
 at least A-1 by S&P; 

and provided,
further, that (i) no instrument shall be an Eligible Investment if such
instrument evidences a right to receive only interest payments with respect to
the obligations underlying such instrument, and (ii) no Eligible Investment may
be purchased at a price in excess of par. Eligible Investments may include
those Eligible Investments with respect to which the Indenture Trustee or an
Affiliate thereof provides services. 

                    “Eligible
Owner Trustee” shall have the meaning specified in Section 10.01 of the
Trust Agreement. 

                    “Eligible
Timeshare Loan” shall mean a Timeshare Loan which meets all of the criteria
set forth in Schedule I of the Sale Agreement. 

- 10 -

                    “Equity”
shall mean the “Total Shareholder’s Equity” specified in Bluegreen’s
Consolidated Balance Sheet as reported in Bluegreen’s most recent filing with
the Securities and Exchange Commission. 

                    “ERISA”
shall mean the Employee Retirement Income Security Act of 1974, as amended. 

                    “Errors”
shall have the meaning specified in Section 5.4 of the Indenture. 

                    “Event
of Default” shall have the meaning specified in Section 6.1 of the Indenture.

                    “Force
Majeure Delay” shall mean 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 or the performance of any other duty or obligation of
the Servicer under the Indenture, 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 Indenture
Trustee written notice thereof as soon as practicable after the beginning of
such delay. 

                    “Foreclosure
Properties” shall have the meaning specified in Section 5.3(a)(xiii) of the
Indenture. 

                    “Future
Resort” shall mean a Resort which is not a Closing Date Resort. 

                    “GAAP”
shall mean generally accepted accounting principles as in effect from time to
time in the United States of America. 

                    “General
Reserve Account” shall mean the account maintained by the Indenture Trustee
pursuant to Section 3.2(b) of the Indenture. 

                    “General
Reserve Account Initial Deposit” shall mean an amount equal to 2.50% of the
Aggregate Closing Date Collateral Balance. 

                    “General
Reserve Account Required Balance” shall equal, for each Payment Date, the
greater of (i) 1.50% of the Aggregate Closing Date Collateral Balance and (ii)
the Target Amount; provided, however, that in no event shall the General
Reserve Account Required Balance equal an amount greater than the Aggregate
Outstanding Note Balance as of such Payment Date regardless of what the Target
Amount or the General Reserve Account Required Balance would otherwise be. 

                    “Global
Note” shall have the meaning specified in Section 2.2 of the Indenture. 

                    “Governmental
Authority” shall mean any nation or government, any state or other
political subdivision thereof and any entity exercising executive, legislative,
judicial, regulatory or administrative functions of or pertaining to
government. 

- 11 -

                    “Grant”
shall mean to grant, bargain, convey, assign, transfer, mortgage, pledge,
create and grant a security interest in and right of set-off against, deposit,
set over and confirm. 

                    “Highest
Lawful Rate” shall have the meaning specified in Section 3 of the Sale
Agreement. 

                    “II”
shall mean Interval International, Inc. 

                    “Indenture”
shall mean the indenture, dated as of March 15, 2008, by and among the Issuer,
the Club Trustee, the Servicer, the Backup Servicer and the Indenture Trustee
as amended, supplemented or otherwise modified from time to time in accordance
with the terms thereof. 

                    “Indenture
Trustee” shall mean U.S. Bank National Association, a national banking
association, not in its individual capacity but solely as Indenture Trustee
under the Indenture, and any successor as set forth in Section 7.9 of the
Indenture. 

                    “Indenture
Trustee Fee” shall mean for each Payment Date, the sum of (A) $875.00 and
(B) until the Indenture Trustee shall become the successor Servicer, the
greater of (i) the product of one-twelfth of 0.035% and the Aggregate Loan
Balance as of the first day of the related Due Period and (ii) $1,500.00. 

                    “Initial
Cut-Off Date” shall mean the close of business on March 15, 2008. 

                    “Initial
Note Balance” shall mean with respect to the Class A Notes, the Class B
Notes, the Class C Notes, the Class D Notes, the Class E Notes, the Class F
Notes and the Class G Notes, $17,794,000, $9,566,000, $14,126,000, $4,354,000,
$5,691,000, $5,383,000 and $3,086,000, respectively. 

                    “Initial
Payment Date” shall mean the Payment Date occurring in May 2008. 

                    “Initial
Purchaser” shall mean BB&T Capital Markets, a division of Scott &
Stringfellow, Inc. 

                    “Initial
Timeshare Loans” shall mean the Timeshare Loans listed on the Schedule of
Timeshare Loans purchased by the Issuer and pledged to the Indenture Trustee on
the Closing Date. 

                    “Intended
Tax Characterization” shall have the meaning specified in Section 4.2(b) of
the Indenture. 

                    “Interest
Accrual Period” shall mean with respect to (i) any Payment Date other than
the Initial Payment Date, the period from the 16th day of the second
preceding calendar month to the 15th day of the preceding calendar
month and (ii) the Initial Payment Date, the period from and including the
Closing Date through April 15, 2008. 

- 12 -

                    “Interest
Distribution Amount” shall equal, for a Class of Notes and on any Payment
Date, the sum of (i) interest accrued during the related Interest Accrual
Period at the related Note Rate on the Outstanding Note Balance of such Class
of Notes immediately prior to such Payment Date (or, if any Note Balance
Write-Down Amounts have been applied to such Class of Notes, the Adjusted Note
Balance of such Class of Notes) and (ii) the amount of unpaid Interest
Distribution Amounts from prior Payment Dates for such Class of Notes, plus, to
the extent permitted by applicable law, interest on such unpaid amount at the
related Note Rate. The Interest Distribution Amount shall be calculated on the
basis of a 360-day year consisting of twelve 30-day months.

                    “Issuer”
shall mean BXG Receivables Note Trust 2008-A, a statutory trust formed under
the laws of the State of Delaware pursuant to the Trust Agreement. 

                    “Issuer
Order” shall mean a written order or request delivered to the Indenture
Trustee and signed in the name of the Issuer by an Authorized Officer of the
Issuer or Administrator. 

                    “Knowledge”
shall mean (a) as to any natural Person, the actual awareness of the fact,
event or circumstance at issue or receipt of notification by proper delivery of
such fact, event or circumstance and (b) as to any Person that is not a natural
Person, the actual awareness of the fact, event or circumstance at issue by a
Responsible Officer of such Person or receipt, by a Responsible Officer of such
Person, of notification by proper delivery of such fact, event or circumstance.

                    “La
Cabana Resort” shall mean the Resort located in Aruba known as the La
Cabana Beach Resort and Racquet Club. 

                    “Lien”
shall mean any mortgage, pledge, hypothecation, assignment for security,
security interest, claim, participation, encumbrance, levy, lien or charge. 

                    “Liquidation”
means with respect to any Timeshare Loan, the sale or compulsory disposition of
a Foreclosure Property, following foreclosure, termination or other enforcement
action or the taking of a deed-in-lieu of foreclosure, to a Person other than
the Servicer or an Affiliate thereof. 

                    “Liquidation
Expenses” shall mean, with respect to the Foreclosure Property related to a
Defaulted Timeshare Loan, as of any date of determination, any reasonable
out-of-pocket expenses (exclusive of overhead expenses) incurred by the
Servicer or the Remarketing Agent in connection with the performance of its
obligations under Section 5.3(a)(xiii) in the Indenture or the Remarketing
Agreement, as applicable, including, but not limited to, (i) any foreclosure,
deed-in-lieu of foreclosure or termination and other repossession expenses
incurred with respect to such Foreclosure Property, (ii) commissions and
marketing and sales expenses incurred by the Servicer or the Remarketing Agent
with respect to the remarketing of the related Foreclosure Property (including
the Remarketing Fee), and (iii) any other fees and expenses reasonably applied
or allocated in the ordinary course of business with respect to the Liquidation
of a Foreclosure Property (including any assessed and unpaid Association fees
and real estate taxes). 

- 13 -

                    “Liquidation
Proceeds” means with respect to the Liquidation of any Foreclosure Property
related to a Defaulted Timeshare Loan, the amounts actually received by the
Servicer or the Remarketing Agent in connection with such Liquidation. 

                    “Loan
Balance” shall mean, for any date of determination, the outstanding
principal balance due under or in respect of a Timeshare Loan (including a
Defaulted Timeshare Loan). 

                    “Lockbox
Account” shall mean the deposit account maintained at the Lockbox Bank
pursuant to the Lockbox Agreement, which shall be a non-interest bearing
account. 

                    “Lockbox
Agreement” shall mean the deposit account control agreement, dated as of
March 15, 2008, by and among the Issuer, the Indenture Trustee and the Lockbox
Bank. 

                    “Lockbox
Bank” shall mean Bank of America, N.A. 

                    “Lockbox
Fee” shall mean on each Payment Date, the fee payable by the Issuer to the
Lockbox Bank in accordance with the Lockbox Agreement. 

                    “Misdirected
Deposits” shall mean such payments that have been deposited to the
Collection Account in error. 

                    “Monthly
Servicer Report” shall have the meaning specified in Section 5.5 of the
Indenture. 

                    “Moody’s”
shall mean Moody’s Investors Service, Inc. 

                    “Mortgage”
shall mean, with respect to a Deeded Club Loan, any purchase money mortgage,
deed of trust, purchase money deed of trust or mortgage deed creating a first
lien on a Timeshare Property to secure debt granted by the Club Trustee on
behalf of an Obligor to the Club Originator with respect to the purchase of
such Timeshare Property and/or the contribution of the same to the Club and
otherwise encumbering the related Timeshare Property to secure payments or
other obligations under such Timeshare Loan. 

                    “Mortgage
Note” shall mean, with respect to a Deeded Club Loan, the original,
executed promissory note evidencing the indebtedness of an Obligor under a
Deeded Club Loan, together with any rider, addendum or amendment thereto, or
any renewal, substitution or replacement of such note. 

                    “Net
Liquidation Proceeds” shall mean with respect to a Liquidation, the
positive difference between Liquidation Proceeds and Liquidation Expenses. 

                    “New
Servicing Fee Proposal” shall have the meaning specified in Section 5.4 of
the Indenture. 

                    “Non-Bluegreen
Owned Resort” shall mean a Resort that is not a Bluegreen Owned Resort. 

- 14 -

                    “Note
Balance Write-Down Amount” shall mean with respect to any Payment Date, an
amount equal to the excess, if any, of the aggregate Adjusted Note Balance of
all Classes (immediately after the distribution of Available Funds) over the
sum of (i) the Aggregate Loan Balance as of the end of the Due Period related
to such Payment Date and (ii) amounts on deposit in the General Reserve Account
and the Prefunding Account, if any. 

                    “Note
Owner” shall mean, with respect to a Book-Entry Note, the Person who is the
beneficial owner of such Book-Entry Note, as reflected on the books of the
Depository or on the books of a Person maintaining an account with such
Depository (directly or as an indirect participant, in accordance with the
rules of such Depository). 

                    “Note
Purchase Agreement” shall mean that certain note purchase agreement dated
March 28, 2008, between the Initial Purchaser and the Issuer. 

                    “Note
Rate” shall mean with respect to the Class A Notes, the Class B Notes, the
Class C Notes, the Class D Notes, the Class E Notes, the Class F Notes and the
Class G Notes, 5.885%, 6.880%, 7.870%, 9.100%, 10.085%, 10.810% and 11.630%,
respectively. 

                    “Note
Register” shall have the meaning specified in Section 2.4(a) of the
Indenture. 

                    “Note
Registrar” shall have the meaning specified in Section 2.4(a) of the
Indenture. 

                    “Noteholder”
shall mean any holder of a Note of any Class. 

                    “Notes”
shall mean collectively, the Class A Notes, the Class B Notes, the Class C
Notes, the Class D Notes, the Class E Notes, the Class F Notes and the Class G
Notes. 

                    “Obligor”
shall mean the related obligor under a Timeshare Loan. 

                    “Offering
Circular” shall mean that certain Confidential Offering Circular, dated
March 28, 2008 related to the Notes and the Transaction Documents. 

                    “Officer’s
Certificate” shall mean a certificate executed by a Responsible Officer of
the applicable party. 

                    “Opinion
of Counsel” shall mean a written opinion of counsel, in each case
acceptable to the addressees thereof. 

                    “Optional
Purchase Limit” shall mean, on any date, an amount equal to (x) 15% of the
Aggregate Closing Date Collateral Balance, less (y) the aggregate Loan Balances
(as of the related purchase dates or release dates, as applicable) of all
Defaulted Timeshare Loans (i) previously purchased by the Club Originator
pursuant to the Sale Agreement, the Transfer Agreement or the Bluegreen
Purchase Agreement or (ii) previously released pursuant to Section 4.7(c) of
the Indenture. 

- 15 -

                    “Optional
Redemption Date” shall mean the first date in which the Aggregate
Outstanding Note Balance is less than or equal to 10% of the Aggregate Initial
Note Balance. 

                    “Optional
Substitution Limit” shall mean, on any date, an amount equal to (x) 20% of
the Aggregate Closing Date Collateral Balance less (y) the aggregate Loan
Balances (as of the related Transfer Dates) of all Defaulted Timeshare Loans
previously substituted by the Club Originator pursuant to the Sale Agreement,
the Transfer Agreement or the Bluegreen Purchase Agreement. 

                    “Original
Club Loan” shall mean a timeshare loan for which the related obligor has
elected to effect an Upgrade and an Originator has agreed to effect such
Upgrade. 

                    “Originator”
shall mean either the Club Originator or the Aruba Originator. 

                    “Outstanding”
shall mean, with respect to the Notes, as of any date of determination, all
Notes theretofore authenticated and delivered under the Indenture except: 

                    (a)          Notes
theretofore canceled by the Indenture Trustee or delivered to the Indenture
Trustee for cancellation; 

                    (b)          Notes
or portions thereof for whose payment money in the necessary amount has been
theretofore irrevocably deposited with the Indenture Trustee in trust for the
holders of such Notes; and 

                    (c)          Notes
in exchange for or in lieu of which other Notes have been authenticated and
delivered pursuant to the Indenture unless proof satisfactory to the Indenture
Trustee is presented that any such Notes are held by a Person in whose hands
the Note is a valid obligation; provided, however, that in determining whether
the holders of the requisite percentage of the Outstanding Note Balance of the
Notes have given any request, demand, authorization, direction, notice,
consent, or waiver hereunder, Notes owned by the Issuer or any Affiliate of the
Issuer shall be disregarded and deemed not to be Outstanding, except that, in
determining whether the Indenture Trustee shall be protected in relying upon
any such request, demand, authorization, direction, notice, consent, or waiver,
only Notes that a Responsible Officer of the Indenture Trustee actually has
notice are so owned shall be so disregarded. 

                    “Outstanding
Note Balance” shall mean as of any date of determination and Class of
Notes, the Initial Note Balance of such Class of Notes less the sum of
Principal Distribution Amounts actually distributed to the Noteholders of such
Class of Notes as of such date; provided, however, to the extent that for
purposes of consents, approvals, voting or other similar act of the Noteholders
under any of the Transaction Documents, “Outstanding Note Balance” shall
exclude Notes which are held by Bluegreen or any Affiliate thereof. 

                    “Owner
Beneficiary” shall have the meaning specified in the Club Trust Agreement. 

                    “Owner
Beneficiary Agreement” shall mean the purchase agreement entered into by
each Obligor and the Developer with respect to the Club Loans. 

- 16 -

                    “Owner
Beneficiary Rights” shall have the meaning specified in the Club Trust
Agreement. 

                    “Owner
Trustee” shall mean Wilmington Trust Company, a Delaware banking
corporation, or any successor thereof, acting not in its individual capacity
but solely as owner trustee under the Trust Agreement. 

                    “Owner
Trustee Corporate Trust Office” shall mean Rodney Square North, 1100 North
Market Street, Wilmington, Delaware 19890-0001. 

                    “Owner
Trustee Fee” shall mean an annual fee equal to (A) prior to the Owner
Trustee becoming successor Administrator, $6,000.00 and (B) upon the Owner
Trustee becoming successor Administrator, $5,000.00, which fee shall be due and
payable on the first Payment Date of each year during the term hereof occurring
after the Issuer’s receipt of an invoice therefor. 

                    “Paying
Agent” shall mean any Person authorized under the Indenture to make the
distributions required under Sections 3.4 of the Indenture, which such Person
initially shall be the Indenture Trustee. 

                    “Payment
Date” shall mean the 2nd day of each month, or, if such date is
not a Business Day, then the next succeeding Business Day, commencing on the
Initial Payment Date. 

                    “Payment
Default Event” shall have occurred if (i) each Class of Notes shall become
due and payable pursuant to Section 6.2(a) of the Indenture or (ii) each Class
of Notes shall otherwise become due and payable following an Event of Default
under the Indenture and the Indenture Trustee has, in its good faith judgment,
determined that the value of the assets comprising the Trust Estate is less
than the Aggregate Outstanding Note Balance. 

                    “Percentage
Interest” for a Class of Notes shall mean the following: 

	
 

	
 

	
 

	
 

	
(i)

	
initially,
 for the Class A Notes, the Class B Notes, the Class C Notes, the Class D
 Notes, the Class E Notes, the Class F Notes and the Class G Notes, 25.95%,
 13.95%, 20.60%, 6.35%, 8.30%, 7.85% and 4.50%, respectively; 

	
 

	
 

	
 

	
 

	
(ii)

	
if an Early
 Amortization Event has occurred and is continuing, for each Class of Notes,
 the then Outstanding Note Balance of such Class divided by the then Aggregate
 Outstanding Note Balance, expressed as a percentage, until such Early
 Amortization Event is cured, at which time the Percentage Interest for each
 Class of Notes shall equal the then Outstanding Note Balance of such Class of
 Notes divided by the then Aggregate Loan Balance, expressed as a percentage;
 and 

	
 

	
 

	
 

	
 

	
(iii)

	
if a Trigger
 Event has occurred and is continuing, for the most senior Class of Notes
 outstanding at any time, 100% and the remaining Classes of Notes, 0%, until
 such Trigger Event is cured, at which time, the 

- 17 -

	
 

	
 

	
 

	
 

	
 

	
Percentage
 Interest for each Class of Notes shall equal the then Outstanding Note
 Balance of such Class of Notes divided by the then Aggregate Loan Balance,
 expressed as a percentage.

                    “Permitted
Liens” shall mean (a) with respect to Timeshare Loans in the Trust Estate,
(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 and the
Issuer created pursuant to the Transaction Documents, and (iii) Liens in favor
of the Trust and the Indenture Trustee created pursuant to the Indenture; (b)
with respect to the related Timeshare Property, (i) materialmen’s,
warehousemen’s, mechanic’s 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,
and (iii) the Obligor’s interest in the Timeshare Property under the Timeshare
Loan whether pursuant to the Club Trust Agreement or otherwise; and (c) with
respect to Timeshare Loans and Related Security in the Trust Estate, any and
all rights of the Beneficiaries referred to in the Club Trust Agreement under
such Club Trust Agreement. 

                    “Person”
means an individual, general partnership, limited partnership, limited
liability partnership, corporation, business trust, joint stock company,
limited liability company, trust, unincorporated association, joint venture,
Governmental Authority, or other entity of whatever nature. 

                    “Predecessor
Servicer Work Product” shall have the meaning specified in Section 5.4(b)
of the Indenture. 

                    “Prefunding
Account” shall be the account maintained by the Indenture Trustee pursuant
to Section 3.2(c) of the Indenture. 

                    “Prefunding
Account Initial Deposit” shall equal $1,000,001.00. 

                    “Prefunding
Period” shall mean the period commencing on the Closing Date and ending on the
Prefunding Termination Date. 

                    “Prefunding
Termination Date” shall mean the Determination Date immediately following
the earliest of (i) 90 days after the Closing Date, (ii) the date on which the
amount on deposit in the Prefunding Account is less than $10,000 and (iii) the
date on which an Event of Default occurs. 

                    “Principal
Distribution Amount” shall equal for any Payment Date and Class of Notes,
the sum of the following, without duplication with respect to any Timeshare
Loan: 

	
 

	
 

	
 

	
 

	
(i)

	
the product
 of (a) such Class’ Percentage Interest and (b) the amount of principal
 collected in respect of each Timeshare Loan during the related Due Period
 (including, but not limited to, principal in respect of scheduled payments,
 partial prepayments, prepayments in full, liquidations, Substitution
 Shortfall Amounts and Repurchase Prices, if any, but excluding principal
 received in respect of Timeshare Loans that became Defaulted Timeshare Loans
 during prior Due Periods that have not been

- 18 -

	
 

	
 

	
 

	
 

	
 

	
released
 from the Lien of the Indenture) or, if the Cut-Off Date for a Qualified
 Substitute Timeshare Loan shall have occurred during the related Due Period,
 the amount of principal collected in respect of such Qualified Substitute
 Timeshare Loan after such Cut-Off Date;

	
 

	
 

	
 

	
 

	
(ii)

	
the product
 of (a) such Class’ Percentage Interest and (b) the aggregate Loan Balance of
 all Timeshare Loans which became Defaulted Timeshare Loans during the related
 Due Period less the sum of (x) the aggregate Loan Balance of all Qualified
 Substitute Timeshare Loans which were conveyed to the Trust Estate in respect
 of Defaulted Timeshare Loans during the related Due Period, (y) the principal
 portion of Repurchase Prices paid in respect of Defaulted Timeshare Loans
 during the related Due Period, and (z) the principal portion of Liquidation
 Proceeds received during the related Due Period; 

	
 

	
 

	
 

	
 

	
(iii)

	
on the first
 Payment Date after the Prefunding Termination Date, the product of (a)(1)
 such Class’ Percentage Interest divided by (2) 88.5% and (b) the amount
 deposited into the Collection Account from the Prefunding Account pursuant to
 Section 3.2(c) of the Indenture, if any; and 

	
 

	
 

	
 

	
 

	
(iv)

	
any unpaid
 Principal Distribution Amounts for such Class from prior Payment Dates. 

                    “Qualified
Substitute Timeshare Loan” shall mean a Timeshare Loan (i) that, when
aggregated with other Qualified Substitute Timeshare Loans being substituted on
such Transfer Date, has a Loan Balance, after application of all payments of
principal due and received during or prior to the month of substitution, not in
excess of the Loan Balance of the Timeshare Loan being substituted on the
related Transfer Date, (ii) that complies, as of the related Transfer Date,
with each of the representations and warranties contained in the Transfer
Agreement and the Bluegreen Purchase Agreement, including that such Qualified
Substitute Timeshare Loan is an Eligible Timeshare Loan; provided that there
will be no seasoning requirement if a Qualified Substitute Timeshare Loan is an
Upgrade Club Loan replacing an Original Club Loan with the same Obligor, (iii)
that shall not cause the weighted average coupon rate of the Timeshare Loans to
be less than 14.65% after such substitution, (iv) that shall not cause the
weighted average months of age on the Timeshare Loans to be less than 3 months
after such substitution, (v) that shall not cause the weighted average
remaining term to maturity of the Timeshare Loans to be equal to or greater than
117 months, and (vi) that does not have a stated maturity later than April
2021. 

                    “Rating
Agency” shall mean Moody’s. 

                    “RCI”
shall mean Resort Condominiums International, LLC (or one of its wholly owned
subsidiaries). 

                    “Receivables”
means the payments required to be made pursuant to a Timeshare Loan. 

- 19 -

                    “Receivables
Collateral” shall have the meaning specified in Section 3 of the Sale
Agreement.

                    “Record
Date” shall mean, with respect to any Payment Date, the close of business
on the last day of the related Interest Accrual Period.

                    “Redemption
Date” shall mean with respect to the redemption of the Notes on or after
the Optional Redemption Date, the date fixed pursuant to Section 10.1 of the
Indenture.

                    “Redemption
Price” shall mean, with respect to each Class of Notes, the sum of the
Outstanding Note Balance of such Class of Notes, together with interest accrued
and unpaid thereon at the applicable Note Rate up to and including the
Redemption Date.

                    “Related
Security” shall mean with respect to any Timeshare Loan, (i) all of the
Issuer’s interest in the Timeshare Property arising under or in connection with
the related Mortgage, if any, Owner Beneficiary Rights, Vacation Points and the
related Timeshare Loan Files, (ii) all other security interests or liens and
property subject thereto from time to time purporting to secure payment of such
Timeshare Loan, together with any Mortgages, signed by the Club Trustee on
behalf of an Obligor describing any collateral securing such Timeshare Loan,
(iii) all guarantees, insurance and other agreements or arrangements of
whatever character from time to time supporting or securing payment of such
Timeshare Loan, (iv) any assignments of Mortgages and any financing statements,
and (v) all other security and books, records and computer tapes relating to
the foregoing.

                    “Remarketing
Agent” shall mean Bluegreen.

                    “Remarketing
Agreement” shall mean that certain remarketing agreement, dated as of March
15, 2008, by and among, the Servicer, the Issuer, the Remarketing Agent and the
Indenture Trustee, as the same may be amended, modified, or supplemented from
time to time in accordance with the terms thereof.

                    “Repurchase
Price” shall mean (i) with respect to any Timeshare Loan to be purchased by
the Club Originator pursuant to the Transfer Agreement, the Bluegreen Purchase
Agreement or the Sale Agreement, an amount equal to the Loan Balance of such
Timeshare Loan as of the date of such purchase or repurchase, together with all
accrued and unpaid interest on such Timeshare Loan at the related Timeshare
Loan Rate to, but not including, the due date in the then current Due Period;
and (ii) with respect to any Closing Date Eligible Investment to be purchased
by the Club Originator pursuant to the Bluegreen Purchase Agreement or the Sale
Agreement, an amount equal to the par balance of such Closing Date Eligible
Investment together with all accrued and unpaid interest on such Closing Date Eligible
Investment at the related coupon rate as of the date of such repurchase.

                    “Request
for Release” shall be a request for release of Timeshare Loan Documents in
the form required by the Custodial Agreement.

                    “Required
Payments” shall mean each of the items described in (i) through (xxiii) of
Section 3.4 of the Indenture.

- 20 -

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

                    “Residual
Interest Certificate” shall mean the certificate issued under the Trust
Agreement, which represents the economic residual interest of the Trust formed
thereunder.

                    “Residual
Interest Owner” shall mean the owner of the Residual Interest Certificate
issued by the Issuer pursuant to the Trust Agreement, which shall initially be
the Depositor.

                    “Resort”
shall mean, as the context shall require, the resort at which the Timeshare
Property related to a Timeshare Loan is located.

                    “Resort
Interests” shall mean as defined in the Club Trust Agreement.

                    “Responsible
Officer” shall mean (a) when used with respect to the Owner Trustee or the
Indenture Trustee, any officer assigned to the Owner Trustee Corporate Trust
Office or the Corporate Trust Office, respectively, including any Managing
Director, Senior Vice President, Vice President, Assistant Vice President,
Secretary, Assistant Secretary, Assistant Treasurer, any trust officer or any
other officer such Person customarily performing functions similar to those
performed by any of the above designated officers, and also, with respect to a
particular matter, any other officer to whom such matter is referred because of
such officer’s knowledge of and familiarity with the particular subject; (b)
when used with respect to the Servicer, the Chief Financial Officer, a Senior
Vice President, a Vice President, an Assistant Vice President, the Chief
Accounting Officer or the Secretary of the Servicer; and (c) with respect to
any other Person, the chairman of the board, chief financial officer, the
president, a vice president, the treasurer, an assistant treasurer, the
secretary, an assistant secretary, the controller, general partner, trustee or
the manager of such Person.

                    “S&P”
shall mean Standard & Poor’s Ratings Services, a division of The
McGraw-Hill Companies, Inc.

                    
“Sale Agreement” shall mean that certain sale agreement, dated as of
March 15, 2008, between the Depositor and the Issuer pursuant to which the
Depositor sells the Closing Date Eligible Investments and Timeshare Loans, from
time to time, to the Issuer.

                    “Sampler
Loan” shall mean a loan originated by Bluegreen pursuant to the terms of a
Sampler Program Agreement.

                    “Sampler
Converted Loan” shall mean a Timeshare Loan, the obligor of which,
previously had a Sampler Loan and converted the same to a Timeshare Loan
pursuant to the terms of a Sampler Program Agreement.

                    “Sampler
Program Agreement” shall mean an agreement pursuant to which a purchaser
thereunder obtains those certain benefits set forth therein which comprise the
“Sampler Membership” and, subject to the terms and conditions thereof, has the
opportunity to convert 

- 21 -

such Sampler
Membership into full ownership in the Bluegreen Vacation Club multi-site
timeshare plan.

                    “Schedule
of Eligible Investments” shall mean the list of Eligible Investments
delivered pursuant to the Bluegreen Purchase Agreement and the Sale Agreement,
as amended from time to time to reflect repurchases, which list shall set forth
the following information with respect to each such Eligible Investment in
numbered columns:

	
 

	
 

	
 

	
 

	
1

	
Eligible
  Investment

	
 

	
2

	
Interest
  Rate Per Annum

	
 

	
3

	
Maturity

	
 

	
4

	
Par Balance

	
 

	
5

	
Type

                    “Schedule
of Timeshare Loans” shall mean the list of Timeshare Loans delivered
pursuant to the Sale Agreement, as amended from time to time to reflect
repurchases, substitutions, Subsequent Timeshare Loans and Qualified Substitute
Timeshare Loans conveyed pursuant to the terms of the Indenture, which list
shall set forth the information with respect to each Timeshare Loan as of the
related Cut-Off Date, as applicable, in numbered columns.

                    If
the Schedule of Timeshare Loans is provided in electronic format, it shall be
substantially in the form of Exhibit E to the Custodial Agreement (which, in
any event, shall contain all the information specified above).

                    “Securities
Act” shall mean the Securities Act of 1933, as amended.

                    “Seller”
shall mean with respect to (i) the Transfer Agreement, BXG Timeshare I, (ii)
the Bluegreen Purchase Agreement, Bluegreen and (iii) the Sale Agreement, the
Depositor.

                    “Sequential
Pay Event” shall mean either a Payment Default Event or a Trust Estate
Liquidation Event.

                    “Servicer”
shall mean Bluegreen in its capacity as servicer under the Indenture, the
Backup Servicing Agreement, the Remarketing Agreement and the Custodial
Agreement, and its permitted successors and assigns.

                    “Servicer
Credit Card Processing Cost” shall have the meaning specified in Section
5.3(b) of the Indenture.

                    “Servicer
Event of Default” shall have the meaning specified in Section 5.4 of the
Indenture.

                    “Servicing
Fee” shall mean for any Payment Date, the product of (i)(A) if Bluegreen or
an affiliate thereof is Servicer, one-twelfth of 1.50% and (B) if the Indenture
Trustee is the successor Servicer, one-twelfth of 1.61%, and (ii) the aggregate
Loan Balance of all Timeshare Loans as of the first day of the related Due
Period; provided that if the Indenture

- 22 -

Trustee is the
successor Servicer, it shall, after payment of the Backup Servicing Fee, be
entitled to a minimum monthly payment of $5,500.00.

                    “Servicing
Officer” shall mean those officers of the Servicer involved in, or
responsible for, the administration and servicing of the Timeshare Loans, as
identified on the list of Servicing Officers furnished by the Servicer to the
Indenture Trustee and the Noteholders from time to time.

                    “Servicing
Standard” shall mean, with respect to the Servicer and the Backup Servicer
a servicing standard which complies with applicable law, the terms of the
Transaction Documents, the terms of the respective Timeshare Loans and, to the
extent consistent with the foregoing, in accordance with the customary standard
of prudent servicers of loans secured by timeshare interests similar to the
Timeshare Properties, but in no event lower than the standards employed by it
when servicing loans for its own account or other third parties, but, in any
case, without regard for (i) any relationship that it or any of its Affiliates
may have with the related Obligor, and (ii) its right to receive compensation
for its services under the Indenture or with respect to any particular
transaction.

                    “Servicer
Termination Costs” shall mean any extraordinary out-of-pocket expenses
incurred by the Indenture Trustee associated with the transfer of servicing.

                    “Similar
Law” shall mean the prohibited transaction rules under ERISA or section
4975 of the Code or any substantially similar provision of federal, state or
local law.

                    “Stated
Maturity” shall mean the Payment Date occurring in April 2023.

                    “Statutory
Trust Statute” shall mean the Delaware Statutory Trust Act, Chapter 38 of
Title 12 of the Delaware Code, 12 Del. C. § 3801, et seq., as the same may be
amended from time to time.

                    “Subsequent
Cut-Off Date” shall mean with respect to any Transfer Date, (i) the close
of business on the last day of the Due Period immediately preceding such
Transfer Date or (ii) such other date designated by the Servicer.

                    “Subsequent
Timeshare Loans” shall mean the Timeshare Loans meeting the criteria
specified in Section 4.3 of the Indenture, sold by the Depositor, purchased by
the Issuer and pledged to the Indenture Trustee on a Transfer Date during the
Prefunding Period.

                    “Subsequent
Transfer Notice” shall have the meaning specified in Section 4.2(a) of the
Indenture.

                    “Substitution
Shortfall Amount” shall mean with respect to any Transfer Date, an amount equal
to the excess of the aggregate Loan Balances of the substituted Timeshare Loans
over the aggregate Loan Balances of the Qualified Substitute Timeshare Loans.

- 23 -

                    “Target
Amount” shall mean, for any Payment Date, an amount equal to the product of
(i) the Target Amount Percentage and (ii) the Aggregate Closing Date Collateral
Balance.

                    “Target
Amount Percentage” shall mean (i) for each Payment Date until and including
the Payment Date in October, 2009, 7.50% and (ii) for each Payment Date
thereafter, 7.50% less the product of (A) 1.25% and (B) the number of Target
Amount Reduction Dates after the Payment Date in October, 2009; provided that
in no circumstances will the Target Amount Percentage be less than 1.50%.

                    “Target
Amount Reduction Date” shall mean a Payment Date in which no Early
Amortization Event or Trigger Event exists and is continuing.

                    “Timeshare
Declaration” shall mean the declaration or other document recorded in the
real estate records of the applicable municipality or government office where a
Resort is located for the purpose of creating and governing the rights of
owners of Timeshare Properties related thereto, as it may be in effect from
time to time.

                    “Timeshare
Loan” shall mean a Club Loan, Initial Timeshare Loan, Subsequent Timeshare
Loan or a Qualified Substitute Timeshare Loan, subject to the Lien of the
Indenture. As used in the Transaction Documents, the term “Timeshare Loan”
shall include the related Mortgage Note, Mortgage, if any, the Owner Beneficiary
Agreement and other Related Security contained in the related Timeshare Loan
Documents.

                    “Timeshare
Loan Acquisition Price” shall mean with respect to any Timeshare Loan, an
amount equal to the Loan Balance of such Timeshare Loan plus all interest
received up to and including the related Cut-Off Date.

                    “Timeshare
Loan Documents” shall mean with respect to each Timeshare Loan and each
Obligor, the related (i) Timeshare Loan Files, and (ii) Timeshare Loan
Servicing Files.

                    “Timeshare
Loan Files” shall mean, with respect to a Timeshare Loan, all documents
related to such Timeshare Loan, including:

	
 

	
 

	
 

	
 

	
1.

	
with respect
  to a Club Loan (other than an Aruba Club Loan), the original Mortgage Note
  executed by the Obligor, endorsed either as (i) “Pay to the order of
  ________, without recourse, representation or warranty” (either directly on
  the Mortgage Note or on an allonge placed with such Mortgage Note), by an
  Authorized Officer of the related Seller (such Authorized Officer’s signature
  may be computer generated), or (ii) a chain of endorsement as follows: “Pay
  to the order of BRFC 2008-A LLC, without recourse, representation or
  warranty”, “Pay to the order of BXG Receivables Note Trust 2008-A, without recourse,
  representation or warranty” and “Pay to the order of U.S. Bank National
  Association, as Indenture Trustee, without recourse, representation or
  warranty except as provided in the Indenture dated as of March 15, 2008”
  (either directly on the Mortgage Note or on an allonge placed with such
  Mortgage Note), by 

- 24 -

	
 

	
 

	
 

	
 

	
 

	
an
  Authorized Officer of the related Seller, the Depositor and the Issuer (such
  Authorized Officer’s signature may be computer generated), respectively (in
  the case of both clauses (i) and (ii) above, together with a complete chain
  of endorsements from the original payee to the related Seller, if
  applicable);

	
 

	
 

	
 

	
 

	
2.

	
with respect
  to a Club Loan (other than an Aruba Club Loan), (i) an original Mortgage with
  evidence that such Mortgage has been recorded in the appropriate recording
  office or (ii) if such Mortgage has not yet been returned to the related
  Seller by such recording office, a photocopy of the unrecorded Mortgage that
  has been delivered to such recording office (with evidence that such Mortgage
  has been delivered to the appropriate recording office for recording);

	
 

	
 

	
 

	
 

	
3.

	
with respect
  to a Club Loan (other than an Aruba Club Loan), (i) original recorded
  Assignment(s) of Mortgage (which may be a part of a blanket assignment of
  more than one Club Loan in which case, a copy thereof, with the original
  blanket Assignments of Mortgage held by the Custodian in the related master
  pool header file), showing the assignment of such Club Loan from the record
  mortgagee to the Indenture Trustee, or (ii) if such Assignments of Mortgage
  have not yet been returned by the related recording office, a photocopy of
  the unrecorded Assignments of Mortgage that have been delivered to such
  recording office (which may be a part of a blanket assignment of more than
  one Club Loan), showing the assignment of such Club Loan from the record
  mortgagee to the Indenture Trustee (with evidence (a copy of (A) the Federal
  Express (or similar service) receipt and (B) the check made payable to the
  applicable recording office, being sufficient evidence) that such Assignments
  of Mortgage have been delivered to the appropriate recording office for
  recording), or (iii) if the related Mortgage has not yet been returned such
  that the related Assignment(s) of Mortgage can not yet be filed, (A) evidence
  that that such Mortgage has been delivered to the appropriate recording
  office for recordation (the evidence in paragraph 2 above being sufficient)
  and (B) Assignments of Mortgage in recordable form (other than the Mortgage recording
  information) duly executed by the last record holder of the Mortgage showing
  the assignment of such Club Loan from the record mortgagee to the Indenture
  Trustee; provided, however, that with respect to clauses (ii) and (iii) of
  this paragraph 3, photocopies held by the Custodian in the related investor
  file shall be sufficient.

	
 

	
 

	
 

	
 

	
4.

	
with respect
  to a Club Loan (other than an Aruba Club Loan), the UCC financing statement,
  if any, evidencing that the security interest granted under such Timeshare
  Loan, if any, has been perfected under applicable state law;

- 25 -

	
 

	
 

	
 

	
 

	
5.

	
with respect
  to a Club Loan (other than an Aruba Club Loan), (i) a copy of any recorded
  warranty deed transferring legal title to the related Timeshare Property to
  the Club Trustee, or (ii) if such recorded warranty deed has not yet been
  returned to the related Seller, a copy of a warranty deed sent for recording;

	
 

	
 

	
 

	
 

	
6.

	
with respect
  to a Club Loan (other than an Aruba Club Loan), either (i) a final original
  lender’s title insurance policy (which may consist of one master policy
  referencing one or more Mortgages) showing no exceptions to coverage (other
  than Permitted Liens) or (ii) a binding unconditional commitment to issue a
  title insurance policy showing no exceptions to coverage (other than
  Permitted Liens) (which may be a master commitment referencing one or more
  Mortgages, the original master commitment to be held by the Custodian in the
  related master pool header file), in all cases referencing such Timeshare
  Loan and insuring Bluegreen Corporation and its successors and/or assigns;

	
 

	
 

	
 

	
 

	
7.

	
the original
  of any related assignment or guarantee or, if such original is unavailable, a
  copy thereof certified by an Authorized Officer of the related Seller to be a
  true and correct copy, current and historical computerized data files;

	
 

	
 

	
 

	
 

	
8.

	
the original
  of any assumption agreement or any refinancing agreement;

	
 

	
 

	
 

	
 

	
9.

	
all related
  Owner Beneficiary Agreements, finance applications, sale and escrow documents
  executed and delivered by the related Obligor with respect to the purchase of
  a Timeshare Property;

	
 

	
 

	
 

	
 

	
10.

	
all other
  papers and records of whatever kind or description, whether developed or
  originated by an Originator or another Person, required to document, service
  or enforce a Timeshare Loan; and

	
 

	
 

	
 

	
 

	
11.

	
any
  additional amendments, supplements, extensions, modifications or waiver
  agreements required to be added to the Timeshare Loan Files pursuant to the
  Indenture, the Credit Policy, the Collection Policy or the other Transaction
  Documents, if any.

                    “Timeshare
Loan Rate” shall mean with respect to any Timeshare Loan, the specified
coupon rate thereon.

                    “Timeshare
Loan Servicing Files” shall mean with respect to each Timeshare Loan and
each Obligor, the portion of the Timeshare Loan Files necessary for the
Servicer to service such Timeshare Loan including but not limited to (i) a copy
of the truth-in-lending disclosure statement executed by such Obligor, as
applicable, (ii) all writings pursuant to which such Timeshare Loan arises or
which evidences such Timeshare Loan and not delivered to the Custodian, (iii)
all papers and computerized records customarily maintained by the Servicer in
servicing timeshare loans comparable to the Timeshare Loans in accordance with
the Servicing 

- 26 -

Standard and
(iv) each Timeshare Program Consumer Document (not the original), if
applicable, related to the applicable Timeshare Property.

                    “Timeshare
Program” shall mean the program under which (1) an Obligor has purchased a
Timeshare Property and (2) an Obligor shares in the expenses associated with
the operation and management of such program.

                    “Timeshare
Program Consumer Documents” shall mean, as applicable, the Owner
Beneficiary Agreement, Mortgage Note, Mortgage, rescission right notices,
public offering statements and other documents and disclosures used or to be
used by an Originator in connection with the sale of Timeshare Properties.

                    “Timeshare
Program Governing Documents” shall mean the articles of organization or
articles of incorporation of each Association, the rules and regulations of
each Association, the Timeshare Program management contract between each
Association and a management company, and any subsidy agreement by which an
Originator is obligated to subsidize shortfalls in the budget of a Timeshare
Program in lieu of paying assessments, as they may be from time to time in
effect and all amendments, modifications and restatements of any of the
foregoing.

                    “Timeshare
Property” shall mean (i) with respect to a Deeded Club Loan, a fractional
fee simple timeshare interest in a Unit in a Resort (or phase thereof) or an
undivided interest in a Resort (or phase thereof) associated with a Unit and
(ii) with respect to an Aruba Club Loan, Co-op Shares.

                    “Transaction
Documents” shall mean the Indenture, the Bluegreen Purchase Agreement, the
Transfer Agreement, the Sale Agreement, the Lockbox Agreement, the Backup
Servicing Agreement, the Administration Agreement, the Remarketing Agreement,
the Custodial Agreement, the Note Purchase Agreement and all other agreements,
documents or instruments (other than the Timeshare Loan Documents) delivered in
connection with the transactions contemplated thereby.

                    “Transfer
Agreement” shall mean the transfer agreement, dated as of March 15, 2008,
by and among Bluegreen, the Depositor and BXG Timeshare I pursuant to which
certain Initial Timeshare Loans are sold to the Depositor.

                    “Transfer
Date” shall mean with respect to (i) a Subsequent Timeshare Loan, the date
during the Prefunding Period on which the Issuer purchases such Subsequent
Timeshare Loan from a Seller and pledges such Timeshare Loan to the Indenture
Trustee to be included as part of the Trust Estate, and (ii) a Qualified
Substitute Timeshare Loan, the date on which the Club Originator substitutes
one or more Timeshare Loans in accordance with Section 4.6 of the Indenture.

                    “Treasury
Regulations” shall mean the regulations, included proposed or temporary
regulations, promulgated under the Code. References herein to specific
provisions of proposed or temporary regulations shall include analogous provisions
of final Treasury Regulations or other successor Treasury Regulations.

- 27 -

                    “Trigger
Event” shall occur on any Determination Date if (a) the average of the
Delinquency Levels for the last three Due Periods is equal to or greater than
6%, (b) the average of the Default Levels for the last three Due Periods
exceeds 1.40% and shall continue until the Default Level is equal to or less
than 1.40% for three consecutive Due Periods or (c) the Servicer (if Bluegreen)
fails to have at least $75,000,000 in financing facilities in place.

                    “Trust”
shall mean the Issuer.

                    “Trust
Accounts” shall mean collectively, the Lockbox Account, the Collection
Account, the General Reserve Account, the Prefunding Account, the Credit Card
Account and the Capitalized Interest Account.

                    “Trust
Agreement” shall mean the amended and restated trust agreement, dated the
Closing Date, by and among the Depositor and the Owner Trustee.

                    “Trust
Estate” shall have the meaning specified in the Granting Clause of the
Indenture.

                    “Trust
Estate Liquidation Event” shall have the meaning specified in Section
6.6(b) of the Indenture.

                    “Trust
Paying Agent” shall have the meaning specified in Section 3.13 of the Trust
Agreement.

                    “UCC”
shall mean the Uniform Commercial Code as from time to time in affect in the
applicable jurisdiction or jurisdictions.

                    “Unit(s)”:
One individual air-space condominium unit, cabin, villa, cottage, townhome or
lot within a resort, together with all furniture, fixtures and furnishings
therein, if applicable, and together with any and all interests in common
elements appurtenant thereto, as provided in the related Timeshare Program
Governing Documents.

                    “Upgrade”
shall mean the process in which an obligor of an Original Club Loan elects to
(a)(i) reconvey the existing Club Property for new Club Property (such new Club
Property having a greater dollar value than the existing Club Property) and
(ii) cancel the Original Club Loan in exchange for an Upgrade Club Loan secured
by such new Club Property or (b)(i) acquires additional Club Property and (ii)
cancels the Original Club Loan in exchange for an Upgrade Club Loan from the
Club Originator secured by the existing Club Property and the additional Club
Property.

                    “Upgrade
Club Loan” shall mean the new timeshare loan originated by an Originator in
connection with an Upgrade.

                    “Vacation
Points” shall have the meaning specified in the Club Trust Agreement.

- 28 -

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