Document:

SECOND AMENDED AND RESTATED
                  PAYMENT GUARANTY AND SUBORDINATION AGREEMENT

         SECOND  AMENDED  AND  RESTATED  PAYMENT   GUARANTY  AND   SUBORDINATION
AGREEMENT  (as  amended  from  time  to  time,  this  "Second  Amended  Guaranty
Agreement")  dated  as of  December  29,  2000,  is  made  by  Raintree  Resorts
International,  Inc., a Nevada  corporation  ("Guarantor"),  in favor of TEXTRON
FINANCIAL CORPORATION, a Delaware corporation ("Lender").

                              PRELIMINARY STATEMENT

     CR Resorts  Cancun,  S. de R.L. de C.V., a Mexican  limited  responsibility
corporation with variable  capital,  CR Resorts Los Cabos, S. de R.L. de C.V., a
Mexican limited  responsibility  corporation with variable  capital,  CR Resorts
Puerto  Vallarta,  S.  de  R.L.  de  C.V.,  a  Mexican  limited   responsibility
corporation with variable capital,  Corporacion  Mexitur,  S. de R.L. de C.V., a
Mexican limited  responsibility  corporation with variable  capital,  CR Resorts
Cancun  Timeshare  Trust, S. de R.L. de C.V., a Mexican  limited  responsibility
corporation with variable capital,  CR Resorts Cabos Timeshare Trust, S. de R.L.
de C.V., a Mexican limited responsibility  corporation with variable capital, CR
Resorts Puerto  Vallarta  Timeshare  Trust, S. de R.L. de C.V. a Mexican limited
responsibility  corporation with variable capital, VILLA VERA RESORT, S. DE R.L.
DE C.V., a Mexican  limited  responsibility  corporation  with variable  capital
("Villa Vera") and PROMOTORA  VILLA VERA, S. DE R.L. DE C.V., a Mexican  limited
responsibility  corporation  with variable  capital  (collectively,  jointly and
severally,   the  "Borrower"),   having  an  address  at  c/o  Raintree  Resorts
International,  Inc., 10000 Memorial Drive, Suite 480, Houston, Texas 77024, and
Lender have  entered  into a certain  Loan and  Security  Agreement  dated as of
November 23, 1999, as amended by that certain Loan Modification  Agreement dated
as of November 20, 2000 (the "First Modification Agreement") and by that certain
Second Loan Modification Agreement of even date hereof (the "Second Modification
Agreement") to which Guarantor hereby consents, and as further amended from time
to time  (the  "Loan  Agreement").  Pursuant  to the terms  and  subject  to the
conditions of the Loan Agreement and the other Loan Documents, Lender has agreed
to lend to the Borrower up to $18,000,000.00 (the "Loan").

         Guarantor, through certain of its subsidiaries in which Guarantor holds
a majority ownership interest, owns a majority ownership interest in each of the
Borrower  entities,  and  Guarantor  is  involved  in  overseeing  the  business
operations of the Borrower and the Resorts,  and derives  material  benefit from
such operations.

       This Second Amended Guaranty Agreement is the "Guaranty" described in the
Loan Agreement and replaces and supersedes  both the Guaranty and  Subordination
Agreement  dated  November 23, 1999  executed by  Guarantor  and the Amended and
Restated  Payment Guaranty and  Subordination  Agreement dated November 20, 2000
executed by Guarantor.

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         Lender's  agreement  to  enter  into the  Loan  Agreement  and make any
Advance is conditioned,  among other things,  upon the execution and delivery by
Guarantor  of this  Second  Amended  Guaranty  Agreement  pursuant  to which the
Guarantor unconditionally  guaranties payment and performance of the Obligations
of Borrower to Lender.  The  Guarantor  will  materially  benefit from  Lender's
making available to the Borrower the Loan, and has agreed to execute and deliver
this Second Amended  Guaranty  Agreement,  and to perform in accordance with its
terms.

         NOW, THEREFORE, in consideration of the premises and in order to induce
Lender to enter into the Loan Documents and to make any Advances,  and to secure
the  performance  and  observance by the  Guarantor of  Borrower's  Obligations,
whether now existing or hereafter arising,  Guarantor has executed and delivered
this Second Amended Guaranty Agreement and does hereby agree as follows:

         1.  Definitions,  Etc.  The  above  Preliminary  Statement  is true and
correct  and is  incorporated  within  and  made a part of this  Second  Amended
Guaranty Agreement.  Capitalized terms used herein which are defined in the Loan
Agreement shall have the meanings  assigned to them therein,  unless the context
otherwise  requires or unless otherwise  defined herein.  Any references to this
"Agreement"  shall mean this Second  Amended  Guaranty  Agreement  including all
amendments,  modifications  and supplements and any exhibits or schedules to any
of the foregoing,  and shall refer to this Second Amended Guaranty  Agreement as
the same may be in effect  at the time such  reference  becomes  operative.  Any
references to "Guarantor"  shall mean Raintree  Resorts  International,  Inc., a
Nevada corporation.

     2.  The  Guaranty.   The   Guarantor   covenants  and  agrees  as  follows:

          (a) Guarantor  hereby  unconditionally  and irrevocably  guaranties to
     Lender,  its  successors  and  assigns,  the due and  punctual  payment  by
     Borrower of all principal,  interest,  prepayment  premiums,  late charges,
     loan  expenses,  and all other amounts  payable under the Note or the other
     Loan  Documents,  and all Obligations at any time owing under the Loan, and
     all costs of collecting  amounts due from the Guarantor,  including without
     limitation  reasonable  attorneys' and paralegals' fees and  disbursements,
     when the same  shall  become  due and  payable,  whether  at  maturity,  by
     acceleration  or  otherwise,  including  any  portion  of such  Obligations
     nominally  held by Lender on  behalf  of those who have  participations  or
     interests  therein  granted  or  created  by  Lender   (collectively,   the
     "Guaranteed Obligations").

          (b) Guarantor  agrees that the guaranty  given hereby is a guaranty of
     payment and not of collection,  and that its obligations hereunder shall be
     primary,  absolute and  unconditional,  irrespective of, and unaffected by,
     the  Borrower's  performance  or failure  to perform or satisfy  all of its
     Obligations arising out of the Note and other Loan Documents, and Guarantor
     irrevocably waives and agrees not to assert or take advantage of:

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               (i)   the   genuineness,    validity,    legality,    regularity,
          enforceability  or any future  amendment of, or change in, this Second
          Amended  Guaranty  Agreement,  any of the other Loan  Documents or any
          other  agreement,  document  or  instrument  to which the  Borrower or
          Guarantor, or any other guarantors of the Obligations,  is or may be a
          party;

               (ii) the  absence of any action to enforce  this  Second  Amended
          Guaranty  Agreement,  any of the  other  Loan  Documents  or any other
          agreement,  document or instrument to which the Borrower or Guarantor,
          or any other guarantors of the Obligations, is a party;

               (iii) any right at law,  or in equity or  otherwise,  to  require
          Lender to institute  suit or proceed  against the Borrower,  any other
          guarantors or any other Person,  or the Collateral,  or to exhaust any
          security  held by Lender,  or to pursue any other  remedy in  Lender's
          power, before proceeding against Guarantor;

               (iv) any defense arising by virtue of any statute of limitations,
          or based on lack of authority, dissolution or ultra vires action;

               (v) notice of the existence,  creation or incurring of any new or
          additional indebtedness or obligations on the part of the Borrower;

               (vi)  the  waiver,  release,  surrender,  discharge,  indulgence,
          extension,  modification,  renewal,  delay,  consent, or other action,
          inaction or omission by Lender with  respect to any of the  provisions
          hereof  or  thereof,  or  with  respect  to the  Borrower,  any of the
          Obligations  or any of the  Collateral,  whether or not the  Guarantor
          shall have had notice or knowledge of any of the foregoing and whether
          or not Guarantor shall have consented thereto;

               (vii) the  existence,  value or  condition  of, or failure of the
          Lender to perfect its Lien against, any Collateral,  or any action, or
          the  absence  of  any  action,   by  the  Lender  in  respect  thereof
          (including,  without  limitation,  the  failure to enforce any Lien or
          realize upon all or any portion of the  Collateral,  or the release of
          any Collateral);

               (viii)  the  validity  or   enforceability  of  the  guaranty  of
          Guarantor  or any  other  guarantor  or  surety  with  respect  to the
          Obligations;

               (ix) any claim or  defense  that the Loan does not  constitute  a
          "Permitted Debt" or that the Loan is otherwise not allowed pursuant to
          the provisions of that certain  December 5, 1997 Indenture  entered by
          Guarantor (the "Indenture");

               (x) any  claim  or  defense  that the  Loan is not  permitted  or
          allowed  pursuant to the  provisions of the FINOVA Loan  Agreement (as
          such term is defined in the Loan Agreement); or

               (xi) any  other  action or  circumstance  which  might  otherwise
          constitute  a legal or  equitable  discharge or defense of a surety or
          guarantor.

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<PAGE>
          (c) To the extent Borrower,  Guarantor,  or any other Person primarily
     or secondarily  liable for the Obligations,  makes a payment or payments to
     Lender, all or any portion of which is subsequently  invalidated,  declared
     to be fraudulent  or  preferential,  set aside or required,  for any of the
     foregoing  reasons or for any other  reason,  to be waived,  repaid or paid
     over to a trustee,  receiver  or any other party  under any  bankruptcy  or
     other Debtor Relief Laws, other state or federal law, common law or rule of
     equity, then the Guaranteed  Obligations or part thereof that were intended
     to be satisfied by such  payment or payments  shall,  to the full extent of
     all of such payments required to be waived, repaid,  restored or paid over,
     automatically be revived, reinstated and continued in full force and effect
     as if said payment or payments had not been made, and Guarantor shall again
     be primarily liable therefor. The Guarantor's obligations under this Second
     Amended Guaranty  Agreement shall not be discharged until the passage of at
     least thirteen (13) calendar  months from the last date on which occurs the
     full,  final and  indefeasible  payment and  performance  of the Guaranteed
     Obligations;   provided,   however,   that  this  Second  Amended  Guaranty
     Agreement,  and  Guarantor's  obligations  hereunder,  shall continue to be
     effective or be  reinstated,  as the case may be, if at any time payment or
     performance  of any of the  Obligations or Guaranteed  Obligations,  or any
     part  thereof,  is  rescinded  or waived or must  otherwise  be restored by
     Lender upon the bankruptcy or other proceeding under any Debtor Relief Laws
     of or affecting the Borrower or Guarantor, and shall continue in full force
     and  effect  as long as  there  exists  a right to  rescind,  or to  compel
     restoration  or  waiver,  of  any  payment  or  performance  of  any of the
     Obligations or Guaranteed  Obligations.  This provision  shall survive full
     payment  and   performance  of  the  Guaranteed   Obligations   and  remain
     enforceable by Lender.

          (d) If Lender,  under applicable law, proceeds to realize its benefits
     under any of the Loan Documents  giving Lender a Lien upon any  Collateral,
     whether  owned by  Borrower  or by any other  Person,  either  by  judicial
     foreclosure or by non-judicial sale or enforcement, Lender may, at its sole
     option,  determine  which of its  remedies or rights it may pursue  without
     affecting any of its rights and remedies under this Second Amended Guaranty
     Agreement.  If, in the  exercise of any of its rights or  remedies,  Lender
     shall forfeit or lose any of its rights or remedies, including its right to
     enter a deficiency  judgment against Borrower or any other Person,  whether
     because of any applicable  laws pertaining to "election of remedies" or the
     like,  Guarantor  hereby  consents  to such action by Lender and waives any
     claim based upon any  election of  remedies,  even if a remedy  asserted or
     action  taken by Lender shall result in a full or partial loss of rights of
     subrogation, if any, which Guarantor might otherwise have had. Any election
     of  remedies  which  results  in the denial or  impairment  of the right of
     Lender to seek a  deficiency  judgment  against  Borrower  shall not impair
     Guarantor's obligation to pay the full amount of the Guaranteed Obligations
     to Lender and to perform its obligations under this Second Amended Guaranty
     Agreement.

          (e) Guarantor has reviewed,  with counsel of its choice,  and consents
     to the Loan  Documents.  Guarantor  shall be regarded,  and shall be in the
     same  position,  as principal  debtor with respect to all of the Guaranteed
     Obligations.

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<PAGE>
          (f) This Second Amended Guaranty  Agreement shall remain in full force
     and effect  without  regard to future  changes  and  conditions,  including
     change of law or any invalidity or irregularity  with respect to any of the
     Obligations or with respect to the execution and delivery or performance of
     any of the Loan  Documents;  and any  attempted  revocation  of this Second
     Amended  Guaranty  Agreement  by  Guarantor  shall be  ineffective,  unless
     otherwise  expressly  provided by law, and, if applicable law provides that
     any such revocation is effective,  such revocation  shall be effective only
     if made in writing  and only as to Advances  thereafter  made by Lender and
     shall not affect the  continuing  liability  hereunder of the Guarantor for
     all of the  Guaranteed  Obligations  theretofore  incurred  by,  accrued on
     account of or arising with  respect to the  Borrower.  This Second  Amended
     Guaranty  Agreement is in addition to, and not in  substitution  for, or in
     reduction of any other guarantees in favor of Lender.

          (g) The Guarantor is fully aware of the financial and other  condition
     of the Borrower and the Resorts.  The Guarantor is executing and delivering
     this  Second  Amended   Guaranty   Agreement  based  solely  upon  its  own
     independent  investigation  and  in no  part  upon  any  representation  or
     statement  of Lender or any agent or  representative  thereof  with respect
     thereto.  The Guarantor is in a position to obtain and hereby assumes whole
     responsibility   for  obtaining  any  additional   information   concerning
     Borrower's  or the Resorts'  financial or other  condition as the Guarantor
     may deem material to its  obligations  hereunder,  and the Guarantor is not
     relying  upon,  nor  expecting  the  Lender  to  furnish,  any  information
     concerning the Borrower's or the Resorts' financial or other condition. The
     Guarantor  hereby  knowingly  accepts  the full  range of risk  encompassed
     within a contract of "continuing guarantees",  which risk includes, without
     limitation,  the  possibility  that the Borrower will  contract  additional
     indebtedness  for which the Guarantor  will be liable  hereunder  after the
     Borrower's  financial condition or ability to pay when due its lawful debts
     has deteriorated.

          (h) Guarantor  acknowledges  receipt of good,  valuable and sufficient
     consideration  for its  entering  into and  performing  under  this  Second
     Amended  Guaranty  Agreement.   Guarantor  has  an  independent  obligation
     hereunder given in  consideration  of Lender's  agreements  pursuant to the
     Loan Documents,  from which the Guarantor derives continuing material value
     and  benefit.   The  Guarantor   subjects  its  separate  property  to  its
     obligations  hereunder,  and agree that  recourse  may be had against  such
     separate property to enforce the Guarantor's obligations hereunder.

     3. Certain Waivers by Guarantor.  The Guarantor  irrevocably waives, to the
fullest extent permitted by law: (a) notice of acceptance hereof,  notice of the
extension  of credit or the  making of  Advances  from time to time,  and of the
creation,  existence or acquisition of any of the  Guaranteed  Obligations;  (b)
notice of the amount of the Guaranteed Obligations, or any other indebtedness of
the Borrower to the Lender from time to time outstanding;  subject,  however, to
Guarantor's  right to make written inquiry of the Lender to ascertain the amount
of the Guaranteed  Obligations or such other indebtedness from time to time; (c)
notice of adverse change in the Borrower's financial condition or any other fact
which might increase  Guarantor's risk; (d) presentment,  demand and protest and
notice of  presentment,  dishonor,  notice of  intent to  accelerate,  notice of
acceleration,  protest,  default,  nonpayment,  maturity,  release,  compromise,

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<PAGE>
settlement,  extension  or renewal of any or all of the Loan  Documents,  or any
other  instrument,  document or  agreement;  (e) notice of default and all other
notices to which Guarantor might otherwise be entitled; (f) all rights to notice
and a hearing  prior to the taking of  possession or control by Lender of, or to
Lender's replevy, attachment or levy upon the Collateral or any bond or security
which might be required by any court prior to allowing Lender to exercise any of
its remedies;  (g) the benefit of all valuation,  appraisal and exemption  laws;
(h) the benefit of all  provisions of law which are or might be in conflict with
the terms of this Second  Amended  Guaranty  Agreement  or any of the other Loan
Documents; and (i) any defense arising by reason of the cessation from any cause
whatsoever of any of the Obligations of Borrower.

     Guarantor  agrees  that any  notice or  directive  given at any time to the
Lender which is inconsistent with the waivers contained in this Section shall be
void and may be ignored by the Lender,  and, in addition,  may not be pleaded or
introduced  as  evidence  in any  litigation  relating  to this  Second  Amended
Guaranty Agreement for the reason that such pleading or introduction would be at
variance  with the written  terms of this  Second  Amended  Guaranty  Agreement,
unless Lender has specifically agreed otherwise in writing.

     For purposes of the provisions contained herein, Guarantor hereby expressly
waives the  benefits  of "orden,  excusion y division"  and of prior  judgement,
levy,  execution and other rights  provided for in Articles  2814,  2815,  2817,
2818,  2820, 2821, 2823, 2827 and 2836 of the Civil Code of the Federal District
of Mexico,  and the  corresponding  articles  of the Civil Code of the States of
Quintana Roo, Jalisco, and Baja California Sur or of the other states of Mexico,
which  articles are not  reproduced  herein by express  declaration of Guarantor
that the  contents  of said  articles  are known to it.  Guarantor  also  hereby
irrevocably and expressly waives its rights under the benefits of Articles 2846,
2847,  2848 and 2849 of the Civil Code for the Federal  District of Mexico,  and
the  corresponding  articles  of the Civil Code of the States of  Quintana  Roo,
Jalisco,  and Baja  California  Sur or of the  other  states  of  Mexico,  which
articles are not reproduced herein by express  declaration of Guarantor that the
contents of said articles are known to it.

     4. Waiver of Subrogation, Reimbursement, Etc.

          (a) In addition  to other  waivers  contained  herein,  the  Guarantor
     irrevocably  waives all  rights it may have at law or in equity  (including
     without  limitation  any law  subrogating  the  Guarantor  to the rights of
     Lender) to seek  contribution,  subrogation,  indemnification  or any other
     form of reimbursement from the Borrower, any other guarantor,  or any other
     Person now or  hereafter  primarily  or  secondarily  liable for any of the
     Obligations,  and all claims or  potential  claims  related  thereto,  in a
     bankruptcy  proceeding,  or other proceeding under any of the Debtor Relief
     Laws, or otherwise,  for or in connection with any disbursement made by the
     Guarantor  under  or  in  connection  with  this  Second  Amended  Guaranty
     Agreement,  or otherwise;  and Guarantor further agrees not to contest such
     waiver in any proceeding;  provided, however, that if and to the extent, if
     any,  that a court of competent  jurisdiction  would deem the  Guarantor to
     retain any such rights of  contribution,  indemnification,  subrogation  or
     reimbursement

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     notwithstanding  such express waiver,  all such rights and all claims based
     thereon,  now or hereafter in existence  and however  incurred or acquired,
     shall be junior and  subordinate  in right of payment to the prior and full
     indefeasible payment and performance in favor of Lender of the Obligations,
     and  Guarantor  agrees  that all such rights and all claims  based  thereon
     shall be inchoate,  and shall not vest in the  Guarantor or be  exercisable
     until the date which is at least  thirteen  (13)  calendar  months from the
     last date on which all of the Guaranteed  Obligations  shall have been paid
     in full to Lender and finally  discharged.  If any payment shall be made to
     Guarantor on account of such reimbursement,  contribution,  indemnification
     or subrogation  rights,  if any, at any time before the passage of at least
     thirteen  (13)  calendar  months  from  the last  date on which  all of the
     Guaranteed Obligations are paid in full and finally discharged, each amount
     so paid shall be received and held by  Guarantor  in trust for Lender,  and
     shall  forthwith be paid to Lender to be credited  and applied  against the
     Obligations, whether matured or unmatured.

          (b)  To the  extent,  if  any,  that  notwithstanding  the  waiver  of
     subrogation contained in Section 4, Guarantor acquires or is deemed to hold
     by way of  subrogation  any rights of Lender  against  Borrower,  any other
     guarantor, or any other Person, the rights of Lender to which Guarantor may
     be  subrogated,  if any, shall be accepted by Guarantor "as is" and without
     any  representation or warranty of any kind by Lender,  express or implied,
     with respect to the legality,  value,  validity or enforceability of any of
     such rights,  or the existence,  availability,  value,  merchantability  or
     fitness for any particular purpose of any Collateral,  and shall be without
     recourse to Lender.

     5.  Demand  by  Lender.  Upon an Event  of  Default  under  any of the Loan
Documents,  all of the  Guaranteed  Obligations  shall be due and payable by the
Guarantor to Lender,  immediately upon Lender's written demand therefor. Payment
by  Guarantor  shall be made to  Lender  in  immediately  available  funds at 40
Westminster Street, Providence,  Rhode Island 02940; Attention:  Collections, or
at any other address in  Providence,  Rhode Island,  Hartford,  Connecticut,  or
otherwise  that may be  specified  in writing  from time to time by  Lender.  If
acceleration of the time for payment of the Obligations is stayed, or demand for
payment thereof is precluded upon  injunction or the  bankruptcy,  insolvency or
reorganization of Borrower or Lender is otherwise stayed,  enjoined or precluded
from exercising its rights and remedies  pursuant to the Loan  Documents,  then,
the entire amount of the Guaranteed  Obligations  shall  nevertheless be due and
payable by  Guarantor  to Lender on demand by Lender.  If payment in full of the
Guaranteed  Obligations is not made to Lender within ten (10) days after demand,
the entire amount of the outstanding  Guaranteed Obligations shall bear interest
at the Default Rate specified in the Note Receivable  Promissory Note; provided,
however, that notwithstanding any provision hereof or in any other Loan Document
to the contrary, the parties intend that any interest for which the Guarantor is
charged or is  obligated  to pay shall not exceed the maximum  rate or amount of
interest permitted under applicable law.

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     6. Enforcement of Guaranty. In no event shall Lender have any obligation to
proceed  against  Borrower,  any other  guarantor,  or any other Person,  or any
Collateral before seeking satisfaction from Guarantor. Lender may proceed, prior
or subsequent to, or  simultaneously  with, the  enforcement of Lender's  rights
hereunder,  to  exercise  any  right or  remedy  which it may have  against  any
Collateral as a result of any Lien it may have as security for the  Obligations,
or any other  right it may have under the Loan  Documents,  or against any other
guarantor  of  the  Obligations,  for  all  or any  portion  of  the  Guaranteed
Obligations.

     7. Benefit of Guaranty.  The  provisions  of this Second  Amended  Guaranty
Agreement  are for the benefit of Lender and its  successors  and  assigns,  and
nothing herein contained shall impair, as between Borrower, on the one hand, and
Lender, on the other hand, the Obligations of Borrower under the Loan Documents.
Nothing  shall  discharge or satisfy the  liability of the  Guarantor  hereunder
except  the  full,  final  and  indefeasible  payment  and  performance  of  the
Guaranteed Obligations.

     8. Modification of Loans,  etc. At any time and from time to time,  without
the consent of, or notice to  Guarantor,  without  incurring  any  liability  to
Guarantor  and without  impairing,  limiting or  releasing  the  obligations  of
Guarantor under this Agreement, Lender may by action or inaction:

          (a) compromise, settle, change or extend the manner, place or terms of
     payment of, or renew or alter all or any portion of, any Obligations;

          (b) take any action under or with respect to the Loan Documents in the
     exercise of any remedy,  power or privilege  contained therein or available
     to Lender at law, equity or otherwise,  or waive or refrain from exercising
     any such remedies, powers or privileges;

          (c) amend or modify in any manner whatsoever any of the Loan Documents
     (except this Second Amended Guaranty Agreement)  notwithstanding  that such
     amendment  or  modification  may result in the  Obligations  exceeding  the
     aggregate principal sums set forth in the Loan Documents;

          (d)  extend,  release or waive the  Borrower's  or any other  Person's
     performance of, or compliance with, any term,  covenant or agreement on its
     part to be performed or observed  under the Loan  Documents,  or waive such
     performance  or compliance  or consent to a failure of, or departure  from,
     such performance or compliance;

          (e) sell,  retain,  exchange,  release,  dispose of, or otherwise deal
     with, any Collateral securing any Obligations;

          (f) refuse or fail to enforce  any rights or  remedies  under any Loan
     Documents  or other  instrument  or  agreement  evidencing  or securing the
     Obligations or waive or modify the  obligations  of, or extend the time for
     performance  of, or release,  any Person (other than  Guarantor) who may be
     liable in any manner for the payment or  collection  of any amounts owed by
     Borrower to Lender; or

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<PAGE>

          (g) apply any sums by whomever paid or however realized to any amounts
     owing by Borrower  or  Guarantor  to Lender in such manner as Lender  shall
     determine in its discretion.

     9. Grant of Lien.  As  security  for the  payment  and  performance  of the
Guaranteed  Obligations,  for value received,  the Guarantor  grants to Lender a
Lien  upon,  security  interest  in,  and,  where  applicable,  right of set-off
against,  any and all  deposits,  credits,  and any and all  other  property  of
Guarantor,  now or at any time with or in the  possession  of or in  transit  to
Lender.

     10. No Marshalling.  Guarantor specifically consents and agrees that Lender
shall be under no  obligation  to Marshall  any assets in favor of  Guarantor or
against or in payment of any or all of the Guaranteed Obligations.

     11.  Subordination.  The  Guarantor  hereby  agrees  that,  to  the  extent
permitted by Section 4.08 of the Indenture,  effective  immediately  and without
notice  upon the  occurrence  of an Event of  Default,  any and all  present and
future debts and  obligations  of the Borrower to Guarantor,  or of Guarantor to
any other  guarantor,  and any  liens,  security  interests,  claims  and rights
related  thereto   (collectively,   the  "Subordinated   Indebtedness"),   shall
automatically and without the need for any further action by Lender, Borrower or
Guarantor,  be waived and  postponed in favor of and  subordinated  to the full,
final and indefeasible  payment of the Obligations.  As additional  security for
this Second Amended Guaranty  Agreement and Guarantor's  obligations  hereunder,
but only to the extent  permitted by Section 4.08 of the  Indenture,  Guarantor,
for value  received,  hereby  unconditionally  assigns  to Lender  and grants to
Lender a security interest in all of Guarantor's  right,  title, and interest in
and  with  respect  to  the  Subordinated   Indebtedness.   Notwithstanding  the
foregoing,  for so long as no Event of Default  then exists or would result from
the making or receipt of the Subordinated  Indebtedness,  and for so long as the
maker of any payments with respect to the Subordinated  Indebtedness is not then
insolvent or would not be rendered insolvent as a result of making such payment,
the Guarantor may make or receive,  as the case may be, payments with respect to
the Subordinated  Indebtedness  pursuant to regularly scheduled payment terms as
may be approved in advance by Lender in writing.

     Guarantor  will  refrain  from  taking  any  action  which  is in  any  way
inconsistent  with or in  derogation of this  subordination  or of the rights of
Lender  hereunder  and  covenant to perform  such  further  acts as necessary or
appropriate  to  give  effect  to  this  subordination.   Without  limiting  the
generality  of the  foregoing,  Guarantor  will not  assign  any  portion of the
Subordinated Indebtedness,  except expressly subject to the terms of this Second
Amended  Guaranty  Agreement;  and  Guarantor  shall  cause all  evidence of the
Subordinated Indebtedness to set forth the provisions hereof or to bear a legend
that it is subject hereto.

                                       9
<PAGE>

   12.  Representations and Warranties.  Guarantor  represents and warrants to
Lender as follows:

          (a) that Guarantor shall, through certain of its subsidiaries in which
     Guarantor holds a majority ownership  interest,  continue to own a majority
     ownership interest in each of the Borrower entities,

          (b) This Second  Amended  Guaranty  Agreement  has been  executed  and
     delivered  by  Guarantor  and  constitutes  a  legal,   valid  and  binding
     obligation of Guarantor, enforceable in accordance with its terms;

          (c) The  execution,  delivery and  performance  of this Second Amended
     Guaranty  Agreement  does not and will not violate any  provision of law or
     administrative  regulation,  any  order of any  court or  other  agency  of
     government,  any provision of any indenture,  agreement or other instrument
     to which  Guarantor  is a party  (specifically  including  the FINOVA  Loan
     Agreement  and  the  Indenture),  or by  which  Guarantor  or  any  of  the
     Guarantor's  properties  or assets is bound,  and is not and will not be in
     conflict with,  result in a breach of or constitute (with due notice and/or
     lapse of time) a  default  under  any such  indenture,  agreement  or other
     instrument, and is not and will not result in the creation or imposition of
     any lien,  charge or encumbrance of any nature  whatsoever  upon any of the
     properties  or assets of  Guarantor  except as  expressly  provided in this
     Second Amended Guaranty Agreement;

          (d) Except as  disclosed  on Exhibit A hereto,  there are no  actions,
     suits or  proceedings  at law or in  equity  or by or  before  the  Mexican
     regulatory   authorities  or  any  other   governmental  or  administrative
     instrumentality  or arbitration  board or other agency or any investigation
     of any of  Guarantor's  affairs  or any of the  Guarantor's  properties  or
     rights which involve the possibility of materially and adversely  affecting
     the Resorts, or all or any portion of the Collateral,  or other properties,
     businesses,  profits, prospects or conditions of Guarantor, or if adversely
     determined,  which would materially affect  Guarantor's  ability to perform
     its obligations under this Second Amended Guaranty Agreement;

          (e) No Default or Event of Default exists under any Loan Document, and
     Guarantor is not in default in any material  respect under any agreement or
     other  instrument  to which  it is a party  or by  which  it may be  bound,
     specifically including the FINOVA Loan Agreement and the Indenture;

          (f)  Guarantor  does not  require,  nor does the identity or nature of
     Guarantor's businesses or properties, or any relationship between Guarantor
     and the Borrower or any other Person or any circumstance in connection with
     the execution,  delivery or  performance  of this Second  Amended  Guaranty
     Agreement,  require, any consent,  approval or authorization of, or filing,
     registration or  qualification,  with, any  governmental or  administrative
     authority  on the  part of  Guarantor,  as a  condition  to the  execution,
     delivery or performance of this Second Amended Guaranty Agreement;

                                       10
<PAGE>
          (g) All tax  returns  required  to be filed as of the date  hereof  by
     Guarantor in any jurisdiction have been filed, and all taxes,  assessments,
     fees and other  governmental  charges against  Guarantor or upon any of its
     property,  income or  franchises,  which are due and payable as of the date
     hereof, have been paid;

          (h) As of the date of this Second Amended Guaranty Agreement and after
     giving  effect  hereto  and to the full  potential  Obligations  which  the
     Borrower  could  incur  under the Loan  Documents,  and the full  potential
     extent  of  the  Guaranteed   Obligations,   the  fair  saleable  value  of
     Guarantor's  assets exceeds its  liabilities,  Guarantor is meeting current
     liabilities as they mature,  Guarantor has sufficient  capital  invested in
     the Resorts and any other  business in which it is engaging,  and Guarantor
     has not incurred debts beyond its ability to pay same as they mature;

          (i) The financial  statements of Guarantor previously delivered to the
     Lender  are true and  correct  in all  material  respects,  fairly  present
     Guarantor's  financial  condition,  and  no  material  adverse  change  has
     occurred in the financial conditions reflected therein since the respective
     dates thereof;

          (j) As of the date of this  Second  Amended  Guaranty  Agreement,  the
     Guarantor's   obligations   hereunder   are  not  subject  to  any  claims,
     counterclaims, offsets or defenses against Lender or Borrower; and

          (k) The Guarantor, on behalf of itself and its Affiliates,  represents
     and warrants to Lender that the Loan is  "Permitted  Debt" (as such term is
     defined in the  Indenture)  and that as of the date hereof  there exists no
     Default or Event of Default (as the  foregoing two terms are defined in the
     Indenture) under the Indenture. Guarantor covenants with Lender that (a) as
     and when required by the Indenture,  the Guarantor  shall cause the Issuers
     (as such term is defined in the  Indenture)  to supply the Lender with true
     and  complete  copies of all  reports,  certifications,  notices or demands
     given by the Issuers under the Indenture  (including,  but not limiting the
     generality of the foregoing,  materials  required by Sections  4.03,  4.04,
     4.21,  7.06,  and Article 8 of the  Indenture) and (b) it will not amend or
     modify the Indenture  without the prior  written  consent of Lender and any
     such  amendment or  modification  to the  Indenture  made without the prior
     written  consent of Lender  shall not be  binding  upon  Lender.  Guarantor
     further  agrees to cause Issuer to promptly  (but in any event within three
     (3) days after  Issuer's  receipt of same)  supply  Lender  with a true and
     complete  copy of any notice  sent to  Issuers  under  Section  6.01 of the
     Indenture,  or any other notice  alleging a default by the Issuer under the
     Indenture.

     13. Certain Financial Matters.

          (a) Guarantor  shall  immediately  give Lender  written  notice of any
     material  adverse  change in its  financial  condition,  including  but not
     limited to, litigation  commenced,  tax liens filed, defaults claimed under
     any  indebtedness or borrowed money, or proceedings  commenced  pursuant to
     any Debtor  Relief Laws with respect to  Guarantor,  or an event of default
     under either the FINOVA Loan or the Indenture.

                                       11
<PAGE>
          (b) Until payment in full of all the Guaranteed Obligations, Guarantor
     will, at its expense, within one hundred twenty (120) days after the end of
     each  calendar  year,  furnish  Lender  with  copies  of  federal  (and  if
     applicable,  state) tax returns  (or, if not filed  within such one hundred
     twenty  (120)  day  period,   then,  when  filed)  and  personal  financial
     statements,  prepared in accordance with United States  generally  accepted
     accounting  principles  on a  basis  consistently  applied  or in a  manner
     acceptable  to  Lender.  Additionally,  Guarantor  will,  at  its  expense,
     execute,  acknowledge  and deliver all such  instruments  and take all such
     action  as  Lender  from time to time may  reasonably  request  in order to
     ensure to Lender the benefits of this Second  Amended  Guaranty  Agreement;
     provided  any such  instruments  and  actions do not  impose  any  material
     obligations on Guarantor not otherwise contemplated herein.

     14. No Waiver.  No  forbearance  or delay on Lender's part in declaring any
default,  in giving  any  notice or  making  any  demand,  or in  exercising  or
enforcing any right  hereunder or under any Loan Document,  shall  constitute or
give rise to a waiver or release by Lender, or limit or impair Lender's right to
declare any default,  give any notice or make any demand, or exercise or enforce
any right or remedy hereunder or under any of the Loan Documents, without notice
or demand, or prejudice Lender's rights as against Guarantor in any respect.

     15.  Assignment.  Lender may assign,  participate  or  transfer  any of its
rights  under  this  Second  Amended  Guaranty   Agreement  and  any  instrument
evidencing all or any part of the Obligations,  and the holder of such rights or
instruments  shall  nevertheless  be  entitled  to the  benefits  of this Second
Amended  Guaranty  Agreement.  No such  assignment  shall  increase  or diminish
Guarantor's  obligations  hereunder.  The  consent  of  Guarantor  shall  not be
required for any such assignment and failure to give notice shall not affect the
validity or  enforceability  of any assignment of this Second  Amended  Guaranty
Agreement or Lender's  rights,  or subject  Lender to any  liability.  If Lender
shall  elect  to  effectuate  an  assignment,   participation   or  transfer  as
contemplated herein, then Guarantor shall not be obligated to pay any expense in
connection with any such assignment, participation or transfer.

     16. Miscellaneous.

          (a) This  Second  Amended  Guaranty  Agreement  shall be binding  upon
     Guarantor  and its heirs,  successors  and assigns,  and shall inure to the
     benefit of, and be  enforceable  by, Lender and its successors and assigns.
     None of the terms or provisions of this  Agreement may be waived,  altered,
     modified or amended,  except by a written instrument duly signed for and on
     behalf of Lender and Guarantor.

          (b) This  Second  Amended  Guaranty  Agreement  may be executed in any
     number of separate  counterparts,  each of which  shall,  collectively  and
     separately, constitute one agreement.

          (c) The use of any  gender  herein  shall  include  all  genders.  The
     singular shall include the plural and vice versa.

                                       12
<PAGE>
          (d) All notices or demands  hereunder shall be in writing and shall be
     sent by registered or certified  mail,  return receipt  requested,  or by a
     nationally  recognized  overnight courier service.  Notices shall be deemed
     received  when  deposited  in a United  States post office mail box or with
     such nationally  recognized  courier  service,  postage  prepaid,  properly
     addressed  to the  Guarantor,  or the  Lender,  as the case may be,  at the
     respective  mailing  addresses set forth in the Loan Agreement,  or to such
     other  addresses  as the  Guarantor  or the  Lender  may from  time to time
     specify in writing.

          (e) The  section  titles  contained  in this Second  Amended  Guaranty
     Agreement  are intended only to provide  convenient  reference and shall be
     without substantive meaning or content of any kind whatsoever.

     17. Material  Inducement.  Guarantor and Lender  acknowledge and agree that
the Guarantor's  waivers and consents  contained in this Second Amended Guaranty
Agreement are a material  inducement to Lender to make the Loan and to engage in
the  transactions  contemplated  by the Loan  Documents,  and that, but for this
Second Amended  Guaranty  Agreement and such waivers and consents,  Lender would
decline to make the Loan.

     18. Expenses.  Guarantor  agrees to pay all expenses  incurred by Lender in
connection with the  evaluation,  protection,  assertion,  or enforcement of its
rights  under  this  Second  Amended  Guaranty  Agreement,   including,  without
limitation, court costs, audit expenses,  collection charges, and attorneys' and
paralegals' fees and disbursements,  including,  but not limited to costs of any
appeal.

     19. Relief from Automatic  Stay,  etc. To the fullest  extent  permitted by
law, in the event the Borrower or Guarantor  shall make  application for or seek
relief  or  protection   under  the  United  States  federal   bankruptcy   code
("Bankruptcy Code") or any other United States or Mexican Debtor Relief Laws, or
in the event that any  involuntary  petition is filed  against  the  Borrower or
Guarantor  under such 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 the Loan  Documents.  In
addition,  in the  event  relief is sought  by or  against  Guarantor  under the
Bankruptcy Code,  Guarantor agrees not to seek,  directly or indirectly,  in any
ensuing bankruptcy proceeding, any extension of the exclusivity period otherwise
available to a debtor under the Bankruptcy Code, including,  without limitation,
the  exclusivity  period  provided for under Section  1121(b) of the  Bankruptcy
Code.  Guarantor  agrees not to contest the validity or  enforceability  of this
Section.

                                       13
<PAGE>

     20.  Waiver  of  Jury  Trial.  TO THE  FULLEST  EXTENT  NOT  PROHIBITED  BY
APPLICABLE  LAW  WHICH  CANNOT  BE  WAIVED,   THE  GUARANTOR  HEREBY  KNOWINGLY,
VOLUNTARILY,  INTENTIONALLY AND IRREVOCABLY  WAIVES 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  SECOND  AMENDED
GUARANTY AGREEMENT,  THE OTHER 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  AGREES  THAT ANY SUCH  ACTION OR
PROCEEDING  SHALL BE TRIED BEFORE A JUDGE AND NOT BEFORE A JURY.  THE  GUARANTOR
FURTHER WAIVES 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,  GUARANTOR  HEREBY  CERTIFIES  THAT NO
REPRESENTATIVE OR AGENT OF LENDER,  INCLUDING 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.  THE  GUARANTOR
ACKNOWLEDGES  THAT THE  PROVISIONS OF THIS SECTION ARE A MATERIAL  INDUCEMENT TO
LENDER'S ACCEPTANCE OF THIS SECOND AMENDED GUARANTY AGREEMENT AND THE OTHER LOAN
DOCUMENTS.

     21.  Governing  Law.  This  Second  Amended  Guaranty   Agreement  and  the
obligations  arising hereunder shall be governed by, and construed in accordance
with,  the laws of the State of Rhode Island  (exclusive  of its  choice-of-laws
principles)  applicable to contracts  made and performed in such state,  and any
applicable  laws of the  United  States  of  America  and the  Guarantor  hereby
expressly submits to the jurisdiction of such courts for the purpose of any such
legal  proceedings and expressly waives for such purpose any other  preferential
jurisdiction  by reason of present or future  domicile or  otherwise.  Guarantor
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.  Guarantor  waives any  objection  which they 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 Second Amended Guaranty Agreement
or the obligations created hereunder and further waive any claim that Providence
County,  Rhode  Island is not a  convenient  forum for any such suit,  action or
proceeding.  Notwithstanding  anything to the  contrary  provided in this Second
Amended  Guaranty  Agreement or any other Loan Document,  to the greatest extent
permitted under United States and Mexican law,  Guarantor  expressly  waives any
and all claims to jurisdiction in Mexico.

                                       14
<PAGE>
     22.  Severability,  Etc. If any provision of this Second  Amended  Guaranty
Agreement or the application thereof to any Person or circumstance shall, to any
extent,  be illegal,  invalid or  unenforceable,  the  remainder  of this Second
Amended  Guaranty  Agreement or the  application of such provision to Persons or
circumstances  other  than  those  as  to  which  it  is  illegal,   invalid  or
unenforceable,  as the case may be, shall not be affected, and each provision of
this Second Amended Guaranty  Agreement shall be legal, valid and enforceable to
the  fullest   extent   permitted  by  law.  The   illegality,   invalidity   or
unenforceability  of any provision of this Second Amended Guaranty  Agreement in
any  jurisdiction  shall not affect the  legality,  validity  or  enforceability
thereof in any other jurisdiction.  Any right or remedy granted herein or in any
Loan  Document is separate,  distinct and  cumulative  and not  exclusive of any
other right or remedy  granted herein or in any Loan Document or provided by law
or in equity; and all of the same may be exercised  concurrently,  independently
or  successively  by Lender in its  discretion.  Any  forbearance on the part of
Lender in  exercising  any right or remedy  shall not  constitute a waiver of or
preclude the exercise of such right or remedy. Lender shall not be deemed by any
act or omission  to have  waived any right or remedy or any default  unless such
waiver  is in  writing  and  signed  by  Lender,  and  then  only to the  extent
specifically set forth in such writing.

     23. No Defaults.  The Guarantor  hereby  acknowledges  and represents  that
Lender has complied fully with all of its  obligations  under the Loan Documents
through the date hereof and is not currently in default thereunder.

                   [REMAINDER OF PAGE INTENTIONALLYLEFT BLANK

                       SIGNATURES BEGIN ON FOLLOWING PAGE]

                                       15
<PAGE>

         IN WITNESS  WHEREOF,  the  Guarantor  has caused  this  Second  Amended
Guaranty Agreement to be duly executed as of the first date appearing above.

                                   GUARANTOR:

                                          Raintree Resorts International,  Inc.,
                                             a Nevada corporation

George E. Aldrich                  By:     Douglas Y. Bech
----------------                   -------------------------
    Witness                        Name: Douglas Y. Bech

                                                                        [SEAL]

                                       16
<PAGE>

STATE OF Texas)
        ------

COUNTY OF Harris)
         -------

     The  foregoing  instrument  was  acknowledged  before  me  this 29th  of
December, 2000,         by        Douglas Y. Bech,         as
Attorney in fact  of  Raintree  Resorts  International,  Inc.,  a  Nevada
corporation, on behalf of the corporation. He/She is personally known to me.

                                                        Lynda L. Guthrie
                                                      --------------------------
                                                            Notary Public
                                                                        (SEAL)

My Commission Expires: February 28, 2004
                       -----------------

                                       17
<PAGE>

                                    EXHIBIT A

                               PENDING LITIGATION

                                      NONE.

                                       18
<PAGE>FOURTH AMENDMENT TO CREDIT AGREEMENT

            This Fourth Amendment to Credit Agreement ("Amendment") is made this
30th day of March,  2001,  by and  among  Phoenix  Color  Corp.  ("Phoenix"),  a
Delaware corporation, PCC Express, Inc. ("PCC"), a Delaware corporation, Phoenix
(MD.)  Realty,  LCC  ("Realty"),  a  Maryland  limited  liability  company,  and
TechniGraphix,   Inc.  ("TechniGraphix"),   a  Maryland  corporation  (singly  a
"Borrower" and collectively,  "Borrowers"), the lending institutions listed from
time to time on Schedule A to the Credit Agreement (as defined below) (singly, a
"Lender" and  collectively,  "Lender"),  First Union  National  Bank, a national
banking association, as issuer of letters of credit (in such capacity, "Issuer")
and First Union  National Bank, as  administrative  agent for Issuer and Lenders
(in such capacity, "Agent").

                                   BACKGROUND

            A.  Borrowers,  Agent,  Issuer and  Lenders  are parties to a Credit
Agreement dated September 15, 1998, as supplemented on February 12, 1999, and as
amended on March 31, 1999, March 23, 2000, and November 13, 2000  (collectively,
"Credit  Agreement"),  pursuant to which  certain  financing  arrangements  were
established for the benefit of Borrowers.  All  capitalized  terms not otherwise
defined herein shall have the respective meanings ascribed thereto in the Credit
Agreement.

            B. Borrowers have requested that Agent,  Issuer and Lenders  modify,
in certain  respects,  the Credit  Agreement and Agent,  Issuer and Lenders have
agreed to make such  modifications,  all as more  fully  set  forth  herein  and
subject to the terms and conditions hereof.

            NOW,  THEREFORE,  with  the  foregoing  Background  incorporated  by
reference  herein and made part  hereof,  the parties  hereto,  intending  to be
legally bound, hereby agree as follows:

          1. Amendments to Credit Agreement.

               a.   Affirmation  of  Reserve.   Borrowers  hereby  reaffirm  the
                    imposition  of  the  reserve   against  the  Borrowing  Base
                    described in that certain Letter  Agreement  dated August 9,
                    2000, among Borrowers, Agent, Issuer and Lender.

               b.   Revolving  Credit Maturity Date. The definition of Revolving
                    Credit  Maturity Date is hereby  extended to March 31, 2002,
                    provided   however,   if   Borrowers'   independent   public
                    accountant  does not issue a clean  opinion  for the  period
                    ending  December 31, 2000,  such Revolving  Credit  Maturity
                    Date shall mean September 30, 2001.

               c.   Financial Covenants.  Sections  6.8(a),(b),(c),  and (d) are
                    hereby amended by deleting the date 9/30/01 where it appears
                    in each "Period" and replacing it with the date 3/31/02.

          2.   Effectiveness  Conditions.  This Amendment shall become effective
               upon the satisfactory  completion,  as determined by Agent in its
               discretion,   of   the   following   conditions   ("Effectiveness
               Conditions")   (all   documents  to  be  in  form  and  substance
               satisfactory to Agent):

               a.   Execution of this Amendment.

               b.   Certified copies of resolutions of each Borrower authorizing
                    the execution, delivery and performance of this Amendment.

                                       1
<PAGE>

               c.   Payment  to Agent (for  ratable  benefit  of  Lenders)  of a
                    non-refundable amendment fee of $37,500.

          3.   Use of Proceeds. Borrowers have advised Agent and Lender that the
               proposed  construction  of a 50,000 square foot  warehouse at the
               Maryland  facility  will  not  occur.  Consequently,   Agent  and
               Lender's consent, pursuant to Section 3 of the Third Amendment to
               Credit Agreement, is revoked and of no further force and effect.

          4.   Representations  and  Warranties.   Each  Borrower  warrants  and
               represents to Agent, Issuer and Lenders that:

               a.   Prior Representations. As of the date of this Amendment, all
                    warranties  and  representations  set  forth  in the  Credit
                    Agreement  and Loan  Documents  are true and  correct in all
                    material  respects,  both before and after giving  effect to
                    this Amendment.

               b.   No  Default.  After  giving  effect  to this  Amendment,  no
                    Default or Event of Default is  outstanding  or would  exist
                    after giving effect to this Amendment.

          5.   Incorporation   into   Existing  Loan   Documents.   The  parties
               acknowledge  and agree that this Amendment is  incorporated  into
               and made part of the Credit  Agreement  and Loan  Documents,  the
               terms and provisions of which,  unless expressly modified herein,
               are hereby  ratified and confirmed and continue  unchanged and in
               full  force  and  effect.  Any  future  reference  to the  Credit
               Agreement or Loan  Documents  shall mean the Credit  Agreement or
               Loan Documents as amended hereby.  To the extent that any term or
               provision  of  this  Amendment  is or  may  be  deemed  expressly
               inconsistent  with any term or provision  in the Loan  Documents,
               the terms and provisions hereof shall control.

          6.   Miscellaneous.

               a.   Headings.  The headings of any  paragraph of this  Amendment
                    are for convenience  only and shall not be used to interpret
                    any provision hereof.

               b.   Other  Instruments.  Each  Borrower  shall execute any other
                    documents,  instruments and writings,  in form and substance
                    satisfactory to Agent, as Agent may reasonably  request,  to
                    carry out the intentions of the parties hereunder.

               c.   Modifications.  No  modification  hereof  or  any  agreement
                    referred to herein shall be binding or enforceable unless in
                    writing  and  signed on behalf  of the  party  against  whom
                    enforcement is sought.

               d.   Governing  Law. The terms and  conditions of this  Amendment
                    shall be governed by and  construed in  accordance  with the
                    substantive laws of the Commonwealth of Pennsylvania without
                    regard to its otherwise  applicable  principles of conflicts
                    and laws.

               e.   Counterparts.  This Amendment may be executed in counterpart
                    all, of which  counterparts  taken together shall constitute
                    one completed  fully  executed  document.  A photocopied  or
                    facsimile  signature  shall be deemed  to be the  functional
                    equivalent of a manually executed original for all purposes.

                                       2
<PAGE>

         IN WITNESS  WHEREOF,  the parties have executed this  Amendment the day
and year First above written.

<TABLE>

<S>                                             <C>
First Union National Bank, as Agent,            Phoenix Color Corp.
Issuer, and Lender

By:  /s/ Margaret Byrne                         By:  /s/ Edward Lieberman
     --------------------------------              ----------------------------
Name:  Margaret Byrne                           Name:  Edward Lieberman
     --------------------------------              ----------------------------
Title: Vice President                           Title:  Chief Financial Officer
     --------------------------------              ----------------------------

                                                PCC Express, Inc.

                                                By:  /s/ Edward Lieberman
                                                   ----------------------------
                                                Name:  Edward Lieberman
                                                   ----------------------------
                                                Title:  Chief Financial Officer
                                                   ----------------------------

                                                Phoenix (MD.) Realty, LLC

                                                By:  /s/ Edward Lieberman
                                                   ----------------------------
                                                Name:  Edward Lieberman
                                                   ----------------------------
                                                Title:  Chief Financial Officer
                                                   ----------------------------

                                                TechniGraphix, Inc.
                                                By:  /s/ Edward Lieberman
                                                   ----------------------------
                                                Name:  Edward Lieberman
                                                   ----------------------------
                                                Title:  Chief Financial Officer
                                                   ----------------------------
</TABLE>

                                       3
<PAGE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00023-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00023-of-00352.parquet"}]]