Document:

CREDIT AGREEMENT WITH TRUST GUARANTEE, ENTERED INTO:

A) AS PARTY OF THE FIRST PART AND BORROWER,  BANCOMER,S.A.  INSTITUCION DE BANCA
MULTIPLE,  GRUPO  FINANCIERO,   HEREINAFTER  DENOMINATED   "BANCOMER,",   HEREBY
REPRESENTED BY MESSRS.  ENGINEER  CARLOS D. VELAZQUES  THIERRY AND ENGINEER JOSE
ENRIQUE SILOS BASURTO.

B) AS PARTY OF THE SECOND PART, AND BORROWER, C.R. RESORTS CAPITAL,  SOCIEDAD DE
RESPONSABILIDAD  LIMITADA  DE  CAPITAL  VARIABLE,  HEREINAFTER  DENOMINATED  THE
"BORROWER", REPRESENTED HEREUNDER BY MR. JOHN McCARTHY SANDLAND;

C) AS PARTY OF THE THIRD PART, AS FOUNDER OF THE PORTFOLIO,  C-R- RESORTS PUERTO
VALLARTA,  SOCIEDAD DE RESPONSABILIDAD LIMITADA DE CAPITAL VARIABLE,  HERINAFTER
DENOMINATED  THE "FOUNDER OF TRUST 1," HEREIN  REPRESENTED  BY MR. JOHN McCARTHY
SANDLAND;

D) AS PARTY OF THE  FOURTH  PART AS  FOUNDER OF THE PORT-  FOLIO,  C.R.  RESORTS
CANCUN,  SOCIEDAD DE RESPONSABILIDAD  LIMITADA DE CAPITAL VARIABLE,  HEREINAFTER
DENOMINATED  "FOUNDER  OF TRUST 2,"  HEREIN  REPRESENTED  BY MR.  JOHN  McCARTHY
SANDLAND;

E) AS PARTY OF THE FIFTH PART, AS FOUNDER OF THE PORTFOLIO AND REAL ESTATE, C.R.
RESORTS LOS CABOS,  SOCIEDAD DE RESPON- SABILIDAD  LIMITADA DE CAPITAL VARIABLE,
HEREINAFTER  DENOMINATED  "FOUNDER OF TRUST 3," HEREIN  REPRESENTED  BY MR. JOHN
McCARTHY SANDLAND;

F) AS PARTY OF THE  SIXTH  PART,  AS  FOUNDER  OF THE REAL  ESTATE,  DESARROLLOS
TURISTICOS  INTEGRALES  DE  COZUMEL,  SOCIEDAD DE  RESPONSAABILIDAD  LIMITADA DE
CAPITAL  VARIABLE,   HEREINAFTER   DENOMINATED  "FOUNDER  OF  TRUST  4,"  HEREIN
REPRESENTED BY MR. JOHN McCARTHY SANDLAND;

G) AS  PARTY  OF THE  SEVENTH  PART,  FOR  THE  EFFECTS  HEREINBELOW  INDICATED,
CORPORACION MEXITUR, SOCIEDAD DE RES- PONSABILIDAD LIMITADA DE CAPITAL VARIABLE,
HEREINAFTER  DENOMINATED  "MEXITUR",  HEREIN  REPRESENTED  BY MR  JOHN  McCARTHY
SANDLAND;

H) AS PARTY OF THE EIGHTH PART, FOR THE EFFECTS  HEREIN- BELOW  INDICATED,  CLUB
REGINA,  SOCIEDAD ANONIMA DE CAPITAL VARIABLE,  HERINAFTER DENOMINATED "REGINA,"
HEREIN REPRE- SENTED BY MR. JOHN McCARTHY SANDLAND; AND

I) PARTY OF THE NINTH  PART,  AS  TRUSTEE,  FIANZAS  MONTERREY  AETNA,  SOCIEDAD
ANONIMA,  GRUPO  FINANCIERO  BANCOMER,  HEREINAFTER  DENOMINATED  "THE TRUSTEE,"
HEREIN REPRESENTED BY MR. ARMANDO VIGNAU QUIROS.

ALL OF THE ABOVE PURSUANT TO THE FOLLOWING ANTECEDENTS,
DECLARATIONS AND CLAUSES:

A N T E C E D E N T S

I.-  CONSTITUTION  OF  THE  BORROWER,  FACULTIES  AND  POWERS-OF  ATTORNEY.

     The  Accredited  declares,  thrrough  its  representative  that:  0 It is a
     company with  limited  responsibility,  duly,constiuted  and  existing,  as
     evidenced in public  instrument  fifty  thousand  eight hundred fifty seven
     dated  Augusteleven  nineteen  hundred ninety seven,  granted before Notary
     Public number two hundred thirty one in the Federal District, Attorney Luis
     de Angoitia  Becerra,  recorded  in the Public  Registry of Commerce in the
     Federal District, under mercantile page No. 225,005.

     B) Its corporate  object  includes de execution of operations such as those
     contemplated hereunder.

     C) Its representative  herunder has sufficient faculties to enter into this
     contract  and that  these  faculties  have not been  revoked,  limited  nor
     modified in any way, as  evidenced  in the Public  Instrument  mentioned in
     antecedent 1 (A) above.

     D) On December first nineteen  hundred ninety seven,  it carried out in the
     city of New  York,  New  York,  jointly  with  Club  Regina  Resorts,  Inc.
     (currently Raintree International Inc., ) an emission of securities made of

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     of warrants and promissory notes, for the total amount of US$100,000,000.00
     (ONE HUNDRED MILLION DOLLARS) United States of America legal currency, with
     interest  at  the  rate  of  13%  (THIRTEEN  PERCENT)  per  annum,  payable
     half-yearly  on the first of June an on the first of  December  each  year,
     beginning on the first of June nineteen  hundred ninety eight and ending on
     the first of December year two thousand and four.

     E) It has requested  BANCOMER to open a simple  credit,  nominated in UDIS;
     for the principal amount up to the equivalent on the date of disposal of US
     $7,000.000  (SEVEN MILLION  DOLLARS 00/100) United States of Americal legal
     currency,  which  shall be  subject to the terms and  conditions  hereunder
     agreed, for the purpose of guaranteeing,  and in its, case, covering to the
     holders of the securities  described in the foregoing  paragraph  regarding
     the payment of interest,  and for the payment of expenses related with this
     operation.

II.  CONSTITUTION OF FOUNDER OF TRUST 1, FACULTIES AND POWERS-OF  ATTORNEY.  The
FOUNDER OF THE TRUST declares, through its representative, that:

     A) The  FOUNDER OF TRUST 1 is a company  with  limited  responsibility  and
     variable  capital,  duly  constituted and existing,  as evidenced in public
     instrument  fifty five thousand nine hundred  thirty dated August  eighteen
     nineteen  hundred  ninety  seven,  granted  before Notary Public number one
     hundred   three  in  the  Federal   District,   Attorney   Armando   Galvez
     Perez-Aragon,  recorded  in the Public  Registry of Commerce in the Federal
     District,under mercantile paage No. 102.373-

     B) Its  corporate  object  includes  the  granting  of  guarantees  and the
     execution of operations such as those contemplated hereunder.

     C) Its representative  hereunder has suficient faculties to enter into this
     contract,  which have not been revoked, limited nor modified in any way, as
     evidenced  in Public  Instrument  No.  51,260  dated  December  twenty  two
     nineteen  hundred  ninety  seven,  granted  before  Notary Pulic number two
     hndred thirty in the Federal District, Attorney Luis de Angoitia Becerra.

     D) It has commercial and associated  relationships with THE BORROWER;  from
     which a direct  benefit  arises upon  guaarnteeing  the  fulfillment of the
     obligations that it assumes,  and it is therefore  willing to guarantee the
     fulfillment of each every one of the obligations derived to the BORROWER in
     accordance with this document and other documents related thereto.

III.- CONSTITUTION OF FOUNDER OF TRUST 2, FACULTIES AND POWERS-OF-ATTORNEY.  The
FOUNDER OF THE TRUST declares, through its representative, that

     A) FOUNDER OF TRUST 2 is a company with limited responsibility and variable
     capital duly  constituted and existing,  as evidenced in public  instrument
     dated  granted  before  Notary  Public  number  in  the  Federal  District,
     Attorney,  recorded in the Public Registry of Commerace,  under  mercantile
     page No. _ _ _ _ _ .:

          1 Its  corporate  object  includes  the  granting of  guarantees,  and
          executing operations such as those contemplated hereunder.

          2 Its representative  hereunder has sufficient faculties to enter into
          this contract,  which have not been revoked,  limited, nor modified in
          any way, as evidenced  in Public  Instrument  No. dated before  Notary
          Public number in the Federal District, attorney

          3 It has commercial and  associated  relationships  with the BORROWER,
          from which a direct benefit arises upon  guaranteeing  the fulfillment
          of the obligations  assumed , and it is therefore  willing to gurantee
          the  fulfillment of each and every one of the  obligations  derived to
          the BORROWER in accordance  with this  instrument and other  documents
          related thereto.

IV.- CONSTITUTION OF FOUNDER OF TRUST 3, FACULTIES AND POWERS-OF- ATTORNEY.  THE
FOUNDER OF THE TRUST declares, through its representataive, that:

     A)  FOUNDER  OF  TRUST 3 is a  company  with  limited  responsibility  with
     variable  capital duly  constituted  and  existing,  as evidenced in public
     instrument,  dated  granted  before  Notary  Public  number in the  Federal
     District,  Attorney,  recorded  in the Public  Registry  of Commerce in the
     Federal District, under mercantile Page No. _ _ _ _ _

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     B) Its  corporate  object  includes  the  granting  of  guarantees  and the
     execution of operations suchas those contemplated hereunder.

     C) Its representataive  hereunder has sufficient  faculties to execute this
     operation,.  which have not been revoked,  limited nor modified in any way,
     as evidenced in Public  Instrument No. dated,  granted before Notary Public
     number in the FederalDistrict, attorney

     D) It has commercial and associated  relationships with the BORROWER,  feom
     which a direct  benefit  arises upon  guaranteeing  the  fulfillment of the
     obligations  assumed hereunder and,  therefore,  it is willing to guarantee
     the  fulfillment  of each and every one of the  obligations  derived to the
     BORROWER in  accordance  with this  document  and other  documents  related
     thereto.

V.-  CONSTITUTION OF FOUNDER OF TRUST 4, FACULTIES AND  POWERS-OF-ATTORNEY.  The
FOUNDER OF THE TRUST declares through its representative that:

     A) FOUNDER OF THE TRUST 4 is a company  with  limited  responsibility  with
     variable  capital,  duly  constituted and existing,  as evidenced in public
     instrument  dated,  granted  before  Notary  Public  number in the  Federal
     District,  attorney  recorded  in the Public  Registry  of  Commerce in the
     Federal District, under Mercantile page No. _ _ _ _

     B) Its  corporate  object  includes  the  granting  of  guarantees  and the
     execution of operataions such as those contemplated hereunder.

     C) Its  representative  hereunder has  sufficient  faculties to execute the
     same,  which have not been  revoked,  limited or  modified  in any way,  as
     evidenced in Public  Instrument  dated granted  before Notary Public number
     for the Federal District, attorney

     D. That it has commercial and associated  relationships  with the BORROWER,
     from which a direct benefit  arises upon  guaranteeing  the  fulfillment of
     each and every one of the obligations derived to the BORROWER in accordance
     with this document and other documents related thereto.

VI.-   CONSTITUTION OF MEXITUR, FACULTIES AND POWERS-OF-
ATTORNEY.
MEXITUR declares, through its representative, that:

     A) MEXITUR is a company with limited  responsibility with variable capital,
     duly  constituted and existing,  as evidenced in public  instrument,  dated
     granted  before  Notary Public  number in the Federal  District,  Attorney,
     recorded in the Public Registry of Commerce in the Federal District,  under
     Mercantile Page No. _ _ _ _.

     B) Its corporate object .includes the  commercialization  and collection of
     time-share,  and the  execution of  operations  such as those  contemplated
     hereunder.

     A) i

     B) Its  representative  hereunder has  sufficient  faculties to execute the
     same,  which have not been  revoked,  limited nor  modified  in anyway,  as
     evidenced in Public  Instrument  No.,  dated,  granted before Notary Public
     Number in the Federal District, Attorney _ _ _ _.

     C) That it  agrees  to carry  out the  operations  and  activities  derived
     hereunder, particularly to act as Depositary of the Portfolio, to carry out
     the  collections,  and to act as  depositary  of the  product  of the  said
     collections.

VI.- CONSTITUTION OF REGINA, FACULTIES AND POWERS-OF-ATTORNEY.  REGINA declares,
through its representative, that:

     A) REGINA is a sociedad anonima with variable capital, duly constituted and
     existing,  as evidenced in public instrument,  dated, granted before Notary
     Public  number in the Federal  District,  Attorney , recorded in the Public
     Registry of Commerce in the Federal  District under mercantile Page No. _ _
     _ _

     B) Its corporate  object  includes the  commercialization  and operation of
     time-share clubs and the execution of operations such as those contemplated
     hereunder.

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     C) Its  representative  hereunder has  sufficient  faculties to execute the
     same,  which have not been  revoked,  limited  nor  modified in any way, as
     evidenced in Public  Instrument  No.  dated,  granted  before Notary Public
     number for the Federal District, Attorney .

     D) That it  agrees  to carry  out the  operations  and  activities  derived
     hereunder and accepts the corresponding responsibilities.

VII.- CONSTITUTION OF THE TRUSTEE,  FACULTIES AND POWERS-OF ATTORNEY The Trustee
declares, through its representaataive that:

     A) It is a bonding  institution,  duly  authorized to perform as trustee in
     trust agreements in guarantee.

     B) That its  representative  hereunder has sufficient  faculties to execute
     the same, which have not been revoked, limited nor modified in any way.

IX.-  CONSTITUTION  OF  BANCOMER,  FACULTIES  AND  POWERS-OF-ATTORNEY.  BANCOMER
declares,through its representative, that:

     A) It is a multiple  bank  institution,  duly  authorized  to carry out the
     operations inherent to its corporate object.

     B) Its  representative  hereunder has  sufficient  faculties to execute the
     same, which have not been revoked, limited nor modified in any way.

PRELIMINARY STATEMENTS

I- The BORROWER declares that:

     a) The execution,  delivery and  fulfillment of the Contract  hereunder and
     the Promissory Note through its representative,  are operations inherent to
     its corporate object which have been duly authorized and do not violate its
     constitutions or its corporate statatutes,  nor any contractual  retriction
     or law, regulation or order from any government organism which may obligate
     or affect the BORROWER or any of its properties.

     b) The Contract  hereunder and the  Promissory  Note,  once  subscribed and
     signed by the BORROWER,  shall  constitute the  BORROWER's  legal and valid
     obligations, demandable against it in accordance with the respective terms.

     c) The existence of any legal action or judicial  proceeding is not pending
     nor hasthe  BORROWER been notified  about the existence of any legal action
     or  judicial  proceeding  which  affect  or may  affect  substantially  and
     adversely  its  financial  operations,  or  the  legitimacy,   validity  or
     enforceability of the Contract hereunder and/or the Promissory Note.

     d) Up to the date of this Contract,  it has not been subject to any strike,
     nor has it been summoned to any strike,  and as far as it knows,  it is not
     attempted  to present  against it any action by its  employees  which might
     affect its financial condition or its operations, or which might affect the
     legitimacy,   validity  or  enforceability  of  this  Contract  and/or  the
     Promissory Note.

     e) It is not in default on debts or contracts in which it participates,  or
     through which it could be commited, at the date of this contract.

     f) It has applied to BANCOMER for a simple credit denominated in UDIS, with
     a  fiduciary  guarantee,  equal  to  up  to  the  principal  amount  of  US
     $7,000,000.00 legal currency of the United States of America on the date of
     its disposal,  which shall be applied to warrant, and in its case, to cover
     the payment of  interests  to the holders of the  securities  described  in
     Antecedent I (D) hereunder,  and to the payment of expenses related to this
     operation.

II.- THE FOUNDERS OF THE TRUST  declare  that they are willing to guarantee  the
fulfillment  of the  BORROWER'S  obligations,  in  accordance  with the contract
here-under  through  the  constitutions  of Trusts in  Guarantee  on (a) certain
collection rights resulting from the sale to the public of Memberships;  (b) the
Maintenance Fees which will serve to conserve the value of the Portfolio; and c)
the Real Estate in Trust, all of which is defined hereinafter.

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III.- BANCOMER declares through its representatives,  that it is willing to open
the credit  requested to the BORROWER,  subject to the  fulfillment of the terms
and conditions, herein contemplated.

By virtue of the above, the parties agree to the following

C L A U S E S

FIRST.-   DEFINITIONS AND ACCOUNTING TERMS.

     A) Definitions.

          When used in this  Contract,  the terms set forth below shall have the
          meaning  herein  indicated,  which  shall  be  applicable  both in the
          singular and in the plural forms:

          "Portfolio",.-  Means the  collection  rights derived from the present
          and  future  accounts  payable  denominated  in  UDIS  and  in  Pesos,
          resulting to physical or moral parties acquiring  Memberships from the
          FOUNDERS OF THE TRUST,  regarding all matters that by fact or by right
          may correspond to them, including their accessory rights,affecting the
          Portfolio and Fees Trust. In the amounts  payable or effectively  paid
          by the FOUNDERS OF THE TRUST.

          "Maintenance  Contract." Means the maintenance  contract executed with
          Starwood  for each of:  FOUNDER  OF TRUST 1,  FOUNDER  OF TRUST 2, and
          FOUNDER OF TRUST 3, so that  Starwood may provide the  preventive  and
          corrective  maintenance  service  at  the  above  mentioned  FOUNDERS'
          facilities.

          "Credit"  Means the credit  denominated  in UDIS opened by BANCOMER to
          the BORROWER,  pursuant to the terms of the contract hereunder,  up to
          the the  principal  amount,  equal  to,  on the date of its  disposal,
          US$7,000.000.00 (SEVEN MILLION DOLLARS 00/100 ) Currency of the United
          States of America.

          "Maintenance   Fees.-"   Means  the  fees  which  the   purchasers  of
          Memberships  shall pay to FOUNDERS 1, and 3,  accordingly,  with which
          Starwood and other third parties providing  maintenance service to the
          FOUNDERS' facilities shall be paid.

          "Bond RRI Coupon.-" Means the coupon  corresponding  to the payment of
          net   interest   derived   from  the   emission,   in  the  amount  of
          US$6,500,000.00  SIX MILLION FIVE HUNDRED  THOUSAND  DOLLARS  00/100),
          plus the  applicable  taxes  payable on June first and December  first
          each year.

          "Working Day".-  MeansMeans a day when banks are open to the public to
          carry out  operations,  or are not authorized to close in Mexico City,
          D.F.

          "Disposal.-"  Means the disposal of funds from the credit  carried out
          by the  BORROWER  on the  Date  of the  disposal,  as  covered  by the
          Contract hereunder.

          "Credit  Documents.-"  Means the contract  hereunder,  the  Promissory
          Note, the Trusts in Guarantee and other  documents in connection  with
          this contract.

          "DOLLARS" AND "U.S.  $.-"  MeansDollars,  legal currency of the United
          States of America.

          "Emission.-" Means the emission of securites,  made up of warrants and
          promissory  notes carried out by the BORROWER on December first 1998,.
          jointly with Club Regina Resorts,  Inc,  (currently  Raintree  Resorts
          International,  Inc.) in the city of New York,  New York,  for a total
          amount of US  $100,000,000.00  (ONE HUNDRED MILLION  DOLLLARS  00/100)
          legal  currency of the United States pf America,  with interest at the
          rate of 13% (THIRTEEN PERCENT) per annum, payable half-yearly, on June
          first and December first each year,  beginning on June first 1998, and
          ending on December first, year 2004.-

          "Date of  Disposal".-  Means the date which occurs forty eight Working
          Hours before  December  first nineteen  hundred ninety nine,  when the
          BORROWER may dispose of the total amount of the Credit..

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          "Date of Payment of Principal  and  Interest.-"  Means the last day in
          each Interest Period,  and any other date when the BORROWER shall make
          a payment of the principal sum or ordinary interests of the Credit and
          Promissory Note in favor of BANCOMER in accordance with the provisions
          established  hereunder.  Assuming that anyDate of Payment of Principal
          and Interests  should fall on a date that is not a Working  Day,.  the
          said Date of Payment of Principal and Interest  shall be understood to
          be  extended  to the  immediately  following  Working  Day,  and  this
          extension  shall  be  included  in the  corresponding  calculation  of
          interests.

          "Trust Cabo San Lucas.-" Means the trust in guarantee which FOUNDER OF
          TRUST 3  constitutes  with the  Trustee  on this date to  warrant  the
          fulfillment of the obligations  derived from the Credit Documents,  to
          which it shall contribute the Cabo San Lucas Real Estate.

          "Trust  Cozumel.-" Means the trust in guarantee which FOUNDER OF TRUST
          4 constitutes with the Trustee on this date to warrant the fulfillment
          of the obligations. derived in the Credit Documents, to which it shall
          contribute the Cozumel Real Estate.

          "Trust on Portfolio  and Fees.-"  Means the trust in guarantee and the
          payments  which  FOUNDERS  OF TRUSTS 1, 2 and 3  constituted  with the
          Trustee on this date to guarantee the  fulillment  of the  obligations
          derived  from the  Credit  Documents-  to  which  the  Portfolio,  the
          Maintenance Fees and the Real Estate in Trust shall be contributed.

          "FOUNDER OF TRUST 1" Refers to C.R.  Resorts  Puerto  Vallarta,  S. de
          R.L. de C.V-

          "FOUNDER OF TRUST 2" Refers to C.R. Resorts Cancun, S. de R.L. de C.V.

          "FOUNDER OF TRUST 3" Refers to C.R.  Resorts Los Cabos,  S. de R.L. de
          C.V..

          "FOUNDER OF TRUST 4" Refers to  Desarrollos  Turisticos  Integrales de
          Cozumel, S. de R.L.de C.V.

          "FOUNDERS  OF  TRUSTS"  Refers,  collectively,  to FOUNDER OF TRUST 1,
          FOUNDER OF TRUST 2, FOUNDER OF TRUST 3 AND FOUNDER OF TRUST 4.

          "TRUSTEE"  Refers to Fianzas  Monterrey  Aetna,  Bonding  Institution,
          BANCOMER Financial Group, or anyother fiduciary institution designated
          by common agreement by the parties.

          "AFFILIATE"  Refers to any company  wherein the BORROWER or any of the
          FOUNDERS OF THE TRUST may be  titleholders  of stock of the coraporate
          cpital, in a proportion below 25% (TWENTY FIVE PERCENT)

          "MAINTENANCE  FUND.-" This has the meaning attributed to the said term
          in Clause EIGHTEENTH hereunder.

          "PAYMENT  FUND.-" This has the meaning  attributed to the said term in
          Clause EIGHEENTH hereunder.

          "WORKING HOURS" Means the hours that are understood to be bank working
          hours in the City of New York, New York, United States of America.

          "CABO SAN LUCAS REAL ESTATE.-"  Means the real estate owned by FOUNDER
          OF  TRUST  3,  located  at San Jose del  Cabo,  Baja  California  Sur,
          acquired  through  public  instrument  number  36,979 on June 8, 1998,
          granted  before  Notary  Public  number  seven  in the  State  of Baja
          California  sur,  Attorney  Hector Castro Castro,  and recorded in the
          Public Registry of Property in San Jose del Cabo, Baja California Sur,
          under number _ _ _ volume :_ _ _ _ _, First Section,  on _ _ _ _ _ _ _
          _ _ _ _ _ , including land, improvements and constructions.

          "COZUMEL  REAL  ESTATE.-"  Means the real  estate  owned by FOUNDER OF
          TRUST 4, located at Cozumel,  Quintana Roo,  acquired  through  public
          instrument  Number 4,378 dated  November  126,  1996,  granted  before
          Notary Public number four In the state of Quintana Roo, Attorney Bello
          Melchor  Rodriguez and recorded in rhe Public  Registry of Property in
          Cozumel,  Quintana Roo, under number _ _ _ volume _ _ _ Section First,
          on __ ___ _ _ _ _ _ _ __ _ _ _  including  land,  improve-  ments  and
          constructions.

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          "Real Estate under  Trust.-" This refers jointly to the Cabo San Lucas
          Real Estaate and the Cozumel Real Estate.

          "Memberships"   Means  the  vacational   periods  in  time-share  only
          corresponding  to the  use of  vacational  units  in the  FOUNDERS  OF
          TRUSTS' facilities,  which are derived from the purchase of series "B"
          shares  in  REGINA,  and to the  membership  contracts  executed  with
          FOUNDER  OF TRUST 1,  FOUNDER  OF TRUST 2 OR FOUNDER OF TRUST 3, which
          form the Portfolio,  through which  concepts the initial  payments and
          the  periodical   monthly   amortizations,   interests,   commissions,
          collection  expenses,  Maintenance  Fees  and in  general,  any  other
          concept inherent to the payment shall be carried out.

          "Mexico" refers to the United Mexican States.

          "Promissory  Note" refers the series of thirty  promissory notes for a
          period of one month,  subscribed by the BORROWER in favor of BANCOMER,
          documenting its debt additionally,  which shall be written under terms
          acceptable to BANCOMER.

          "Interest  Period.-" Means each of the monthly periods, on whose basis
          the Credit  interests  shall be calculated.  The first Interest Period
          for the  Disposal of this Credit  shall begin on the date in which the
          said Disposal is effected,  and shall terminate  precisely on December
          29, 1999,  and on this same date,  the first  Payment of Principal and
          Interests  shall occur.  The second period and all the other  Interest
          Periods shall begin on the immediate day after the the  termination of
          the  immediately  prior  Interest  period and shall  terminate  on the
          twenty ninth day of each month, except that corresponding to the month
          of February each year, which shall terminate precisely on February 28

          "Pesos" Means the legal currency in the United Mexican States.

          "RCI" Means Resort Condominiums  International,  a company constituted
          in accordance with the laws of the United States of America.

          "RRI" Means Raintree  Resorts  Internation,  a company  constituted in
          accordance with the laws of the United States of America.

          "Starwood" This refers jointly,  to Starwood  Puerto  Vallarta,  S. de
          R.L. de C.V.,  Starwood  Cancun,  S. de R.L. de C.V.  and Starwood Los
          Cabos, S. de R.L. de C.V.

          "Subsidiary"  Means any  company in which the  BORROWER  or any of the
          FOUNDERS OF THE TRUSTS may be titleholder of 25% (twenty five percent)
          or more of the  corporaate  capital,  or have the faculty to designate
          the majority of members of the Board of Directors,  or through a trust
          to vote,  administration contracts or other controlling vehicles which
          may determine the administration of the company.

          "Ordinary  Rate"  MeansBORROWERMeans  the rate of  interest of 12% per
          annum.

          "Textron"  Means  the  Textron   Financial   Corporation,   a  company
          constituted  in  accordance  with the  laws of the  United  States  of
          America.

          "UDIS"  or  "Investment  Units."  Means  the  unit in the  account  of
          constant real value  determining all the payment  obligations in Pesos
          that may be agreed or generated due to judicial acts evidenced in this
          instrument,  which  are  regulated  in  the  Decree  establishing  the
          obligations  that can be denominated in Investment  Units, and reforms
          and adds various  provisions in the Fiscal Code for the Federation and
          in the  Income  Tax Law,  published  in the  Official  Gazette  of the
          Federation on April first 1995.

          "Securities" This refers jointly to the warrants and Promissory Notes,
          derived from the emission described in antecedent I (D) hereunder.

     B) Accounting terms

          All the  accounting  terms used in this  instrument  and in the Credit
          Documents  shall be  interpreted  in  accordance  with  the  generally
          accepted  accounting  principles  in  Mexico,  issued  by the  Mexican
          Institute  of  Public  Accountants,  unless  a  different  meaning  is
          assigned hereunder.

                                       7
<PAGE>

SECOND.  OPENING  THE  CREDIT.

     BANCOMER  hereby  opens a simple  credit with a fiduciary  guarantee to the
     BORROWER,  denominated in UDIS, up to the  equivalent  principal sum on the
     Date of the Disposal,  of US  $7,000,000.00  (SEVEN MILLION DOLLARS 00/100)
     which do not  cover  the  interest  and  expenses  caused  by virtue of the
     contract hereunder.

     The  applicable  rate of exchange to establish  exactly the total amount of
     the  credit  in UDIS  shall be  determined  48  hours  prior to the Date of
     Disposal.

     Under the terms of Article 294 (two hundred ninety four) in the General Law
     for Credit Titles and  Operations,  the parties  agree that BANCOMER  shall
     have faculties to limit the amount of the credit and the period, or both at
     the same time,  or to denounce  the credit as from a certain date or at any
     time, through the simple writen notification sent to the BORROWER under the
     terms of this instrument,  with which the said Contract shall be considered
     expired.

THIRD.- DISPOSAL OF THE CREDIT.

     The BORROWER  may dispose of the Credit on the Date of Disposal,  up to the
     equivalent  principal sum on the said Date of Disposal to US  $7,000,000.00
     (SEVEN MILLION DOLLARS 00/100) providing it fulfills the conditions for the
     disbursement provided in Clause FIFTEENTH hereunder,  and intends the funds
     received for the purposes described in Clause Fifth in this contract.

FOURTH.- PERIOD

     The total period for the Credit is thirty months,  with no period of grace,
     beginning on November 29, 1999 and terminating on May 29, 2002..

FIFTH.-  DESTINATION OF THE CREDIT

     The  destination of the Credit is to warrant,  and in its case to cover, to
     the  holders of the of bonds  resulting  from the  emission,  the  punctual
     payment  of the  amount  of US  $6,500,000.00  (SIX  MILLION  FIVE  HUNDRED
     THOUSAND 00/100 DOLLARS)  corresponding to half-yearly interest at the rate
     of 13% per annum,  payable on the first of December 1999 under the terms of
     the  Emission,  and to finance the  BORROWER for the Income Tax on interest
     paid in  accordance  with the  Emission,  commisions  and expenses for this
     Credit.

SIXTH.- PAYMENT OF THE CREDIT

     The BORROWER shall return the principal amount of the Credit through thirty
     successive monthly amortizations,  substantially equal, beginning the first
     Payment Date of  Principal  and  Interests on December 29, 1999,  and these
     shall  be  covered  at  the  value  of  UDIS  on  the  date  in  which  the
     corresponding Date of Payment of Principal and Interests occurs.

SEVENTH.- ANTICIPATED PAYMENTS.

     In the event that the  BORROWER  should  decide to pay totally or partially
     the  unpaid  balance  of the  Credit,  it shall  send  BANCOMER  a  written
     notification 5 (five) natural days in advance, indicating the date in which
     the  anticipated  payment  shall be made  and the  amount  of same,  in the
     understanding that all anticipated payments shall 1) be made on the Date of
     Payment of the  Principal;  and 2) be made  together  with the  accumulated
     unpaid interest up to the date of the said anticipated payment.

     The above mentioned  prepayments are not subject to premium or penalty, but
     if the  anticipated  payment  is  made on a date  different  from a Date of
     Payment of  Principal  and  Interest,  the  BORROWER  shall pay BANCOMER an
     amount equal to the amount which BANCOMER has to pay to its source of funds
     for  making  prepayments  on  dates  different  from a Date of  Payment  of
     Principal and Interest.  This amount shall be determined by BANCOMER at the
     time when the  BORROWER  notifies  the  prepayment,  under the terms  above
     provided, and shall be payable jointly with the anticipated payment.

                                       8
<PAGE>

EIGHTH.- COMMISSIONS AND INTEREST

     I Opening Commission

     The BORROWER shall pay BANCOMER, on the date of execution of this contract,
     an opening commission in the amount of US $105,000.00,  equal to 1.50% (ONE
     POINT  FIFTY  PERCENT)  of  the  principal  sum  of the  Credit,  plus  the
     corresponding Value Added Tax, for an aggregate of US$120,750.00.

     II. INTEREST

     The Accredited shall pay ordinary and penalty interest,  as the case may be
     on the principal  unpaid  amount of the Credit,  calculated on the basis of
     one  commercial  year with 360 (three  hundred sixty) days by the number of
     natural  days which have  effectively  elapsed,  from the date in which the
     Disposal is made, and up to the total and complete  payment,  calculated as
     follows:

          1) Ordinary  interest:  THE BORROWER shall pay on each Date of Payment
          of Principal and Interest, ordinary interest on unpaid balances of the
          principal amount of the Credit, calculated at the Ordinary Rate.

          2)  Moratorium  interest:  In the event of a  moratoruium,  this shall
          cause  interest on the expired and unpaid  balances of the Credit,  at
          the annual rate resulting from multiplying the Ordinary Rate in effect
          on the date of  payment  by 1.50 (ONE  POINT  FIFTY).  The  Moratorium
          interest shall be caused as long as the delay lasts,  as from the date
          in which the default originates and up to the total payment, and shall
          be payable on sight.

NINTH.- APPLICATION OF PAYMENTS

     Each amount received by BANCOMER under this Contract for the payment of the
     Principal  sum,  commissions,  interests and Credit  accessories,  shall be
     applied as far as it may be sufficient,  to the payment of the  obligations
     derived from this  contract,  in  accordance  with the  following  order of
     precedence:

     In the first place,  for the payment of each and every  expense and cost in
     which  BANCOMER  may  have  incurred,   due  to  obtaining  the  obligatory
     fulfillment of the obligations derived hereunder, assuming that any default
     should occur to any of the Credit Documents;

     In second place, the remaining amount after liquidating the above mentioned
     concepts, shall be applied to the payment of moratorium interests earned up
     to the date in which the corresponding payment is made.

     In third  place,  the  remainder  after  liquidating  the  above  mentioned
     concepts shall be applied to the payment of ordinary interests earned up to
     the date in which the corresponding payment is made.

     In the fourth place,  the remainder  after  liquidating the above mentioned
     concepts  shall be applied to the payment of the monthly  installments  for
     the principal  unpaid  balance of the Credit,  in an inverted  order to its
     dates of maturity, beginning with the most distant date.

     The above shall be applied without detriment to the provisions contained in
     Clause Ninth in the Portfolio and Fees Trust Agreement.

TENTH.- EXPENSES

     All the reasonable  expenses in connection  with this Contract,  as well as
     registrations  and  cancellations  in the Public  Registries  of  Property,
     notarial fees and expenses, Trustee's reasonable fees and expenses, as well
     those of its technical  committee,  administration  expenses for the Trust,
     fees,  expenses  and taxes  caused by the  assessment  of the  Portfolio to
     warrant  the  fulfillment  of this  Contract,  as  well as the  half-yearly
     revisions carried out under the terms hereunder,  supervisor's expenses, in
     the event he is  designated,  expenses and  insurance  premiums  incured by
     BANCOMER,  travelling  expenses,  fees and expenses of BANCOMER'S  external
     legal consultants,  as well as other expenses in connection with the above,
     shall  be  paid  by the  BORROWER  or by any of the  FOUNDERS,  as  soon as
     BANCOMER  requires  the  payment,  without  needing the  intervention  of a
     Federal or judicial officer. BANCOMER agrees to make all the efforts within
     its reach so that the amount of the above mentioned  expenses are not above
     the market average.

                                       9
<PAGE>

     With  reference  to the above,  the parties  agree that a)  BANCOMER  shall
     inform the BORROWER about all the traveling expenses and every expense that
     involves important amounts (understanding as such all the amounts involving
     disbursements over US. $ 2,000 per event), at least five Working Days prior
     to making such disbursements; b) the BORROWER cannot deny its authorization
     to make such important  expenses  without a justified  cause; and c) in the
     event that a Cause of Anticipated  Maturity  occurs,  BANCOMER may make the
     expenses  it deems  pertinent  charged  to the  patrimony  of the Trusts in
     Guarantee, without requiring a notification or authorization.

ELEVENTH. INCREASE IN COSTS

     In the event that, as a result of a) the  proclamation  or  modification of
     any law or regulation,  or due to any change in the  interpretation,  or b)
     the  fulfillment  of any  request  from  any  central  bank  or  government
     authority  or c) the  anticipated  payment  of all or part of the  Credit's
     principal  sum on a date which is not a Date of Payment  of  Principal  and
     Interest, an increase in the cost should be produced for BANCOMER to obtain
     funds to exhibit or to  maintain in effect the  Disposal of the Credit,  it
     shall inform the  BORROWER in writing  about this  matter,  indicating  the
     amount of the increase.  Once this  information  is received,  the BORROWER
     shall pay BANCOMER  the amounts it may indicate  that are required to cover
     the said increase in costs,  and shall make such  payments  within 5 (FIVE)
     Working days after the date in which the corresponding information has been
     received.

TWELTH.- PLACE AND FORM OF PAYMENT

     All the  payments  that the  BORROWER  shall  be made in favor of  BANCOMER
     covered by this Contract and the Promissory Note shall be made precisely in
     Pesos,  in the  equivalent  amount  of UDIS,  without  needing  a  previous
     requirement,  making the credit before 11:A.M.  (Mexico City time),  to the
     account which  BANCOMER may indicate in writing,  or at any other place and
     in any account which BANCOMER may designate through a written  notification
     addressed to the BORROWER ten Working Days in advance.

THIRTEENTH.- TAXES

     All the amounts payable by the BORROWER shall be covered without deductions
     and shall be free from any taxes,  contributions,  deductions or retentions
     of any  nature  that  may be  imposed  or  encumbered  at any  time  by any
     authority.

     Due to the above,  the BORROWER  undertakes to leave BANCOMER free and safe
     from any taxes or fiscal  charges  derived  from or  related  to any of the
     Credit  documents that may not have been paid and of which the BORROWER was
     not opportunely  aware.  This  obligation  shall remain in force during the
     period of prescription due to fiscal  responsibilities,  in accordance with
     the applicable legislation.

FOURTEENTH. PROMISSORY NOTE

     The  Promissory  Note  subscribed  by the BORROWER to the order of BANCOMER
     under the terms of this Contract,  shall be understood to be in recognition
     of the amount which the BORROWER has at its disposal as an additional  form
     of documentation of the same.

     BANCOMER may also assign or transfer this Agreement,  and the assignee will
     be entitled to the same rights and benefits as if it were BANCOMER.

     BORROWER may not assign the rights and  obligations  hereunder  without the
     prior written consent of BANCOMER.

     BANCOMER  may  discount,   transfer,   assign,  endorse  or  negotiate  the
     Promissory  Note prior to its  maturity  under the terms of the  applicable
     legislation,  and this instrument is the specific authorization required by
     Article 299 (TWO HUNDRED  NINETY NINE) in the General Law for Credit Titles
     and Operations.

FIFTEENTH,  CREDIT CONDITIONS

     BANCOMER's  obligation to effect the  disbursements in accordance with this
     Contract  is  subject  to  the  previous   fulfillment   of  the  following
     conditions:

          I. To deliver to BANCOMER at least 5 (FIVE)) working days prior to the
          date of  execution  of  this  Contract,  the  original  documents  and

                                       10
<PAGE>

          powers-of-attorney  evidencing the BORROWER's  legal existence as well
          as the legal  existence of each of the FOUNDERS OF THE TRUST,  MEXITUR
          and  REGINA,  as  well  as the  faculties  of  the  attorneys-in-fact,
          including  the  information   regarding  their   registration  in  the
          corresponding Public Registry.

          II: To deliver to BANCOMER, no later than on the Date of Disbursement:

               A) This instrument,  duly signed by all the parties participating
               in same.

               B) Testimony  of the public  instrument  through  which the trust
               covering  the  transfer  of  ownership  in benefit of the company
               denominated  Promotora  villa  Vera,  S. de R.  L.  de C.V.  with
               respect to Hotel Villa Vera, located in Acapulco, Guerrero.

               C) Evidence of having constituted the Trusts in Guarantee and the
               Maintenance Funb, to BANCOMER'S satisfaction.

               D) Evidence  issued by an  authorized  official of the  BORROWER,
               stating  that no default  exists on its part with  respect to the
               positive and negative  covenants  hereunder  and under all credit
               contracts contracted in the past.

               E) Evidence  issued by the TRUSTEE  stating  that it has affected
               the PORTFOLIO in a minimum  proportion of 2.5 to 1(TWO POINT FIVE
               TO ONE) in  guarantee  with  respect  to the total  amount of the
               Promissory  Note,  considering  to this effect,  the value of the
               UDIS on the date of the Disposal,  in the  understanding  that in
               the event that all or part of the Portfolio should be replaced by
               another in Pesos or Dollars,  the  parties  shall  determine  the
               applicable equivalence.

               F)  Certificate  issued  by the  Trustee  to the  effect  that it
               received a deposit  fo  rUS$500,000.00,  to form the  Maintenance
               Fund.

               G) Evidence of having notified  MEXITUR,  or any other company in
               charge of the  Collection of the Portfolio  endorsed to BANCOMER,
               and of receiving  the  correspond-ing  funds for the  Maintenance
               Fees,  stating that it continues  receiving the payments relative
               to the  capital,  interests,  anticipated  payments,  accelerated
               amortizations  and all the  amounts  that the clients may make in
               favor of their debt,  as well as such  Maintenance  Fees, so that
               the  amounts  of  both  are  concentrated  in the  Trust  for the
               Portfolio and Fees.

               H) A  commitment  letter  issued  by  any  financing  institution
               satisfactory  to  BANCOMER,  written  in  terms  satisfactory  to
               BANCOMER,  where the former undertakes to finance working capital
               to the BORROWER,  the FOUNDERS OF THE TRUST,  its  Affiliates and
               Subsidiaries,  as well as the ordinary  interest derived from the
               Emission,  payable on June first in the year two thousand.. I) To
               deliver to BANCOMER,  no later than on the date of the  Disposal,
               the Promissory Note documenting the said Disposal,  subscribed by
               the BORROWER.

SIXTEENTH.    POSITIVE COVENANTS

     As long as any portion of the Credit is unpaid,  and while the BORROWER has
     any outstanding  obligation to fulfill,  the BORROWER,  THE FOUNDERS OF THE
     TRUST, MEXITUR and REGINA undertake to carry out the items indicated below,
     unless they obtain the previous  written  consent from BANCOMER,  exempting
     them from fulfilling any of the said  obligations,  in which case, the said
     consent  shall be effective  only with  respect to the specific  matter and
     occasion for which it was granted.

          A)  Information  requirements:  To provide  BANCOMER  the  information
          indicated below;

               1. As soon as available,  and in any case within 45 (FORTY FIVE )
               natural  days after the close of each  quarter  in the  corporate
               year of BORROWER,  the FOUNDERS OF THE TRUST, MEXITUR and REGINA;
               an internal quarterly  financial statement for the said companies
               (in the BORROWER'S  specific case, the statement  known as 10K in
               the United States) at the close of the said quarter, which should

                                       11
<PAGE>

               at least include General Balance sheet,  Statement of Results and
               Cash Flows, with its analytic reports signed by the corresponding
               company's   representative,   that  it  is  up  to  date  in  the
               fulfillment of all the  obligations To Do and Not to Do contained
               in Clauses Sixteenth and Seventeenth hereunder.

               2. As soon as  available  and in any case within 120 (ONE HUNDRED
               TWENTY)  natural  days after the close of the fiscal yeaar of the
               BORROWER  and of the  FOUNDERS  OF THE  TRUST,  their  respective
               subsidiaries and/or affilates,  a copy of their individual annual
               financial stataements (in the BORROWER's and RRI's specific case,
               the statement  known as 10K in the Unted States) with the opinion
               from one of the independent  public  accountant  offices with the
               best  international  prestige,  or  by  any  other  that  may  be
               acceptable  to BANCOMER,  as well as a letter  subscribed  by the
               BORROWER's authorized official,  stating that it is up to date in
               the  fulfillment of the Obligations to Do and Not to Do contained
               in Clauses Sixteenth and Seventeenth hereunders.

               3. Immediately  after initiating or notifying any action,  demand
               or proceeding  before any court,  council,  government  entity or
               commission,  to deliver  BANCOMER a  notification  indicating the
               details of the corresponding demand or proceeding,  assuming that
               a)  claims  in   connection   with  taxes,   products,   uses  or
               contributions to social security, local or federal, for an amount
               equal to over Pesos Mexican Currency, US $250,000.00 (TWO HUNDRED
               FIFTY  THOUSAND  DOLLARS  00/100)  b) In any other  case,  except
               bankruptcy,  for an amount equal to over the  equivalent  to 3.0%
               (THREE  PERCENT)  of the  annual  sales  of any  of  them;  or c)
               requests or demands for  bakruptcy  or  suspension  of  payments,
               unlimited with respect to the amount involved.

               4. On the date in which  BANCOMER  reasonably  requests  that any
               other  information  be  provided  with  respect to the  financial
               conditions  or of any other  nature from the BORROWER or from the
               FOUNDERS OF THE TRUST,  to deliver to BANCOMER such  information,
               providing that this information is immediately available..-

               5. As soon as possible,  but in any case within 10 (TEN)  natural
               days  after  the date in which a Cause for  Anticipated  Maturity
               occurs, or an event that, with time, could constitute a Cause for
               Anticipated  Maturity,  a  notification  from  the  corresponding
               company's  principal  offical,  stating  the  details of the said
               Cause for  Anticipated  Maturity,  and the measures that the said
               company has taken or proposes to take in this respect.

               6. To notify  BANCOMER in writing,  at least 30 (THIRTY)  working
               days in advance  about any  possible  reduction  of over 10% (TEN
               PERCENT) of the corporate  capital of the BORROWER,  THE FOUNDERS
               OF THE TRUST,  REGINA  and  MEXITUR,  or any of their  respective
               subsidiries.

               7. As soon as possible,  but in any case at least 10 (TEN)working
               days in advance,  to notify in writing,  the  expenses  made from
               capital or  investments in fixed assets by the BORROWER or by the
               FOUNDERS  OF  THE  TRUST   (different   from  expenses  to  cover
               replacements or substitutions) which,  considered individually or
               in  conjunc-tion  during  a  fiscal  yeara,  amount  to  over  US
               $125,000.00  (ONE HUNDRED TWENT FIVE THOUSAND DOLLARS 00/100) per
               quarter,  accumulated  up to a maximum  of US  $500,000.00  (FIVE
               HUNDRED THOUSAND DOLLARS 00/100)  annually,  or its equivalent in
               Mexican Currency,  indicating the amount,  destination and source
               of funds to this effect.

               In the  event of any  deviation  from  the  amount  proposed,  to
               explain to BANCOMER the nature of the same,  so that BANCOMER may
               authorize the corresponding investment, which shall not be denied
               without a reason, all of which shall be under the terms of Clause
               Seventeenth (F) hereunder.

               8. As soon as available,  but in any case within 10 (TEN) natural
               days  after the close of each  quarter,  a report  regarding  the
               respective  approvals for capital or investment expenses in fixed
               assets,  different from replacement or substitution expenses made
               during the  immediately  foregoing  quarter,  for amounts over US
               $125,000.00  (ONE HUNDRED TWENTY FIVE THOUSAND DOLLARS 00/100) oe

                                       12
<PAGE>

               its equivalent in Pesos considering the BORROWER and the FOUNDERS
               OF THE TRUST  and their  respected  Subsidiaries  and  Affiliates
               jointly.

               9 As soon as available, but in any case within 60 (SIXTY) natural
               days after the  beginning  of each  calendar  year,  an executive
               summary of its master  operational  budget  applicable to the new
               year, including all the proforma financial  statements,  (general
               balance  sheet,statement of results,  statement of changes in the
               capital and  statement of changes in the  financial  position and
               cash flow) all of which  consider  jointly the  BORROWER  and the
               FOUNDERS  OF THE  TRUST  and  their  respective  affiliates  and
               subsidiaries.

                    A) To  continue  as an  on-going  company  with no change in
                    their line of business.

                    B) To maintain their judicial personality, without modifying
                    its  corporate  object or the  structure  of their shares of
                    stock  without  the  previous  written   authorization  from
                    BANCOMER,  whose  consent  shall  not be  denied  without  a
                    reason.

                    C) To permit  BANCOMER or  whomsoever  it may  designate  to
                    carry out periodical  visits,  with a previous  notification
                    and  without   interfering   with  the   business's   normal
                    operations,  also  providing the  periodical  information on
                    same which BANCOMER may reasonably request.

                    D) To keep insured  against any  insurable  risk  including,
                    without  limitation,   against  fire,   earthquake,   flood,
                    hurricane,  cyclone,  storms, stormy winds,  hurricane winds
                    and  any  other  coverage  in  connection  with  the  proper
                    safeguard of all and each one of the properties of which the
                    BORROWER,  THE  FOUNDERS  OF THE  TRUST or their  respective
                    Affiliates  and  Subsidiaries  may be owners or lessees,  in
                    accordance  with the  standards  in  effect  in  Mexico  The
                    corresponding  policy or policies covering the properties on
                    which a guarantee is constituted  under the terms hereunder,
                    shall be  endorsed in favor of the  Trustee,  so that he may
                    proceed to repair the properties destined to time-share,  or
                    to  the  payment  of  the  credit.  BANCOMER  undertakes  to
                    instruct the Trustee that, as long as the Guarantee  Measure
                    is  maintained,  the amounts  paid for  insurance is for the
                    payment of the repairs  required in the  facilities and real
                    estate that may have been affected

                    F) To invoice at market prices  comparable to the average in
                    the hotel and  time-share  industry,  all the properties and
                    services  provided  by THE  BORROWER,  THE  FOUNDERS  OF THE
                    TRUST, and their respective Subsidiaries and Affiliates.

                    G) To maintain in the sales  contracts  of  time-share,  the
                    terms,  conditions and period (including  without limitation
                    the  amounts  for any kind of  counterbenefits)  similar  to
                    those that are currently executed,  and in general, to carry
                    out sales in competitive  conditions and equivalent to those
                    in the maraket of  developments  having a similar  category,
                    unless  BANCOMER  grants its  written  consent to modify the
                    same.

                    H) To  substantially  maintain in effect the  preventive and
                    corrective  maintenance programs provided in the Maintenance
                    Contract executed with Starwood,  as well as the replacement
                    or substitution  reserve,  so that the time-share  units and
                    the  other  properties  in  guarantee,   may   substantially
                    maintain   their   category   of   services,    furnishings,
                    decoration,  and other  aspects  related to those which they
                    currently have.

                    I) To  maintain  an  investment  program  that  ensures  the
                    quality of the  services  to be  provided  to the clients in
                    each development

                                       13
<PAGE>

                    J) To assign to the  anticipated  payment of the Credit,  as
                    much as may be  possible,  the  product  obtained in cash of
                    emissions  of debt or  capital at a  corporate  level by the
                    BORROWER individually,  or together with other companies, in
                    national or international markets.

                    K) Maintain a percentage  of overdue  Portfolio of less than
                    10%.  Overdue  portfolio  means  Portfolio  between 1 and 90
                    calendar days late.  Portfolio overdue for more than 90 days
                    will not be accepted.

                    L) To  maintain  FOUNDER OF TRUST 1,  FOUNDER OF TRUST 2 AND
                    FOUNDER   OF   TRUST   3,   within   the   "Golden    Crown"
                    --------------- distinction granted by RCI.

                    M) To  maintain  and make  its  respective  Subsidiaries  or
                    Affiliates keep adequate Accounting books and records, where
                    they  shall  keep  complete   records  in  accordance   with
                    generally  accepted  accounting  principles  in  Mexico  and
                    consistently  applied,   reflecting  all  the  corresponding
                    company's financial operations.

                    N) To take all the necessary  measures  required at any time
                    to obtain and to  maintain  in effect  all the  governmental
                    records,  authorizations and approvals necessary so that the
                    BORROWER  and the  FOUNDERS OF THE TRUST may  fulfill  their
                    obligations in accordance with this Contract.

SEVENTEENTH.  NEGATIVE COVENANTS

     As long as any part of the Credit is unpaid,  and as long any obligation is
     pending  fulfillment,  the  BORROWER  and the  FOUNDERS  OF THE  TRUST  are
     obligated to abstain from,  and to make their  respective  Affiliaates  and
     Subsidiares  abstain  from  carrying  out any of the  activities  indicated
     below, unless they obtain the writtenconsent  from BANCOMER,  in which case
     the said consent or approval shall be effective only and exculusively  with
     respect to the specific matter and the occasion for which it was granted.

          A) To carry out any substantial modification in its administrative and
          sales  system  which  might  have the direct or  indirect  result of a
          reduction  or  deviation  of  the  cash  flows  from  the  use  of the
          time-share.

          A) To contract without BANCOMER's previous written authorization,  any
          credit or loan, in an individual or in a Consolidated  level different
          from the (i) The credit  alternatives  described  in Clause  FIFTEENTH
          (III) (D)  hereof;  (ii) the  revolving  lines opf  credit,  up to the
          principal  amount of  US$32,500,000  entered into with FINOVA  Capital
          Corporation; and (iii) the credit for the purchase of Hotel Villa Vera
          in  Acapulco,  Gro.,  unless the  product  obtained  is applied to the
          anticipated payment of this Credit and this authorization shall not be
          denied without a justified cause.

          B) To totally  encumber or assign the BORROWER's fixed assets or those
          of any of THE FOUNDERS OF THE TRUST for an amount over US  $100,000.00
          (ONE HUNDRED  THOUSAND  DOLLARS 00/100)  annually or its equivalent in
          Pesos, in the understanding that this obligation is exclusively to the
          BORROWER and to the FOUNDERS OF THE TRUST,  excluding its  fulfillment
          by their respective Affiliates and Subsidiaries.

          C)  To  grant  loans  or  prepayments  to  its  shareholders,   parent
          companies, direct orindirect third parties, or any third party, except
          in payment of debts assumed prior to the date of this Contract,  loans
          or prepayments to its  subsidiaries  and affiliates,  its suppliers or
          its employees in accordance with the normal  practices of the BORROWER
          AND THE FOUNDERS OF THE TRUST and sales credits to its clients  within
          the normal  parameters of the hotel and time-share  industry,  without
          this imposing any  restriction  other than as provided in Section 4.08
          of the Emission."

          D) To make sales of  Memberships,  weeks  and/or  time-share  units at
          wholesale,  both to physical and to moral parties  different  from the
          FOUNDERS  OF THE TRUST,  unless a minimum of 50% of the  product  thus
          obtained is applied to the prepayment of the Credit.

                                       14
<PAGE>

          E) To carry out  different  capital or  investment  expenses  in fixed
          assets  for an  amount  over Us  $500,000.00  (FIVE  HUNDRED  THOUSAND
          DOLLARS  00/100)  annually,  accumulated,  unless  it is a  matter  of
          investments  for   replacement,   substitutions,   or  replacement  of
          equipment or properties  directly in relation  with the  operations of
          the FOUNDERS OF THE TRUST, REGINA or MEXITUR.

          F) That the  BORROWER  carry out any  emission of debt or capital at a
          corporate  level,  in an  individual  form  or  jointly  with  another
          company, both in the national or in the international markets,  unless
          the  product  from  the same is  assigned  to the  pre-payment  of the
          Credit.

          G) To reduce its corporate  capital in any amount, or to pay dividends
          with resources from payments of the Maintenance Fees.

EIGHTEENTH. GUARANTEE/COLLATERAL

     For the purpose of preserving the correct  application  of the  Maintenance
     Fees,  which in turn preseve the value of the Portfolio,  and to guaranatee
     the  fulfillment  of each and every one of the BORROWER's  obligations,  as
     well as for the punctual and opportune  payment of the principal and of the
     ordinary and moratorium interest earned, charges, costs, expenses or taxes,
     and any other  payment  obligations  assumed  or  derived  in charge of the
     BORROWER  under  the  terms  hereunder,  and  in  the  other  documents  in
     connection  with the Credit,  and without  prejudice to responding with all
     its patrimony for the obligations  acquired,  the BORROWER and the FOUNDERS
     OF THE TRUSTS constitute the fiduciary warranty  contemplated in the Trusts
     in Guarantee which on this date are constituted with the Trustee, under the
     terms  of   Exhibits   "A,"   "B,"  and  "C"   hereunder,   whose   general
     characteristics are the following:

          I TRUST CABOS SAN LUCAS REAL ESTATE

               A) Nature: An irrevocable trust in guarantee

               B)  Parties:
                   Founder of Trust     Founder  of Trust 3
                   Beneficiary          BANCOMER in the first place
                                        Founder of Trust 3 in second  place.
                   Trustee              The Trustee

               C) Matter: Cabo San Luicas Real Estate

               D) Purposes: So that the Trustee may keep the Cabo San Lucas Real
               Estate in guarantee  for the  fulfillment  of the  obligations  .
               derived from the Credit Documents, carrying out the corresponding
               execution  procedure when BANCOMER  communicates the existence of
               default, without liability for the Trustee.

               E) Releases: The Trustee, by instructions fromBANCOMER,  releases
               the  guarranty  constituted  on the Cabo San Lucas  Real  Estate.
               BANCOMER shall give give the respective  instructions,  providing
               no default has occured to the terms of the Credit documents,  and
               providing the two  following  assumptions  have  occured:  1) The
               BORROWER has fully and  punctually  complied with the first seven
               monthly amortiza- tions of the Credit;  and 2) Total and punctual
               compliance  has been made of the payment of the RRI Bond  Coupon,
               maturing on June first in the year 2000-

     II TRUST COZUMEL REAL ESTATE

               A) Nature : Irrevocable trust in guarantee.

               B)Parties
                 Founder of Trust;      Founder of Trust 4
                 Fideicommissary:       BANCOMER  in the first place
                                        Founder of Trust 4 in the second place
                 Trustee:               The Trustee

               C) Matter: Cozumel Real Estaate

                                       15
<PAGE>

               A) Purpose:  That the Trustee may keep the Cozumel real estate to
               guarantee the  fulfillment  of the  obligations  derived from the
               Credit Docu-  ments,  carrying  out the  corresponding  execution
               proceeding  when  BANCOMER  communicates  the  existence  of such
               default, without liability to the Trustee.

     III) TRUST ON PORTFOLIO AND FEES.

               A) Nature; An irrevocable trust in guarantee and payment

               A) Parties:
                  Founders of Trust
                      for Portfolio:   Founder of Trust 1
                                       Founder  of T

                  Founders of Trust
                           for Fees    Founder  of Trust 1
                                       Founder of Trust 2
                                       Founder of Trust 3

                  Beneficiary:         BANCOMER I in the first place
                                       The Founders of the Trust in second place

                  Trustee:             The Trustee.

               C) Matter:

                    1)  The   Portfolio   approved  by  BANCOMER  with  a  value
                    representing at all times an equal or superior proportion to
                    2.5 to 1 with  respect  to the unpaid  value of the  Credit,
                    considering  exclusively  the portion of the Portfolio which
                    is up-to-date.  To determine the indicated measurement,  the
                    Portfolio  in  moratorium  shall  not  be  considered.   The
                    FOUNDERS OF THE TRUST shall primarily affect all the portion
                    of the Portfolio  denominated in UDIS, and only in the event
                    that  this  should  be  insufficient  to  cover  the  agreed
                    measurement,  they shall affect the  Portfolio in Pesos.  2)
                    All the Maintenance Fees

               A) Purposes:

                    1) That the Trustee shall maintan  affected in guarantee the
                    credit titles  documenting  the Portfolio,  both those which
                    are  contributed  initially and those  contributed  later in
                    trust, in addition or in substitution to those existing,  in
                    order to preserve the value of the said  warranty,  in order
                    to comply with the provisions contained in this contract and
                    in the Trust for the Portfolio and Fees.

                    2)  That  the  Trustee,   on  its  own  behalf,  or  through
                    depositaries  to  whom  the  collection  is  delegated,   to
                    collect,  receive  and keep the funds  corresponding  to the
                    Portfolio,   including   prepayments,   usually  denominated
                    "Cashouts as well as the interest earned by the Porfolio and
                    the total amount of the  Maintenance  Fees, in guarantee for
                    the fulfillment of the  obligations  derived from the Credit
                    Documents,   carrying   out  the   corresponding   execution
                    procedure  when  BANCOMER  communicates  the  existence of a
                    default, without liability for the Trustee

                    3) That the Trustee shall monthly apply the product from the
                    collection  of the  Portfolio  in the  first  place,  to the
                    constitution  or   re-constitution   of  the  Payment  Fund,
                    releasing the FOUNDERS OF THE TRUST from the excess,  in the
                    understanding  that from the  moment  in which  the  Trustee
                    receives  instructions  from  BANCOMER  that a  default  has
                    occurred  to the  terms of the  Credit,  the  Trustee  shall
                    deliver to BANCOMER the total amont received,  to be applied
                    to the prepayment of the Credit.

                    4) That as long as the Trustee does not receive instructions
                    to the  contrary  from  BANCOMER,  it shall  deliver  to the
                    designated    depositaries   the   amounts   received   from
                    Maintenance   Fees,   with  the  exception  of  the  portion

                                       16
<PAGE>
                    corresponding  to the Maintenance  Fund indicated below, for
                    purpose of covering  the total  amounts to be paid for these
                    concepts to the respective providers of services.

                    5) Thaat the Trustee shall montly  separate from the amounts
                    received for Maintenance  Fees, the necessary amount fo form
                    a fund denominated "Maintenance Fund" in an amount not to be
                    under US $500,000.00, determined in accordance with the rate
                    of  exchange  at the end  ofthe  month,  and  this  shall be
                    deposited in the account which BANCOMER shall indicate,  for
                    the purpose of guaranteeing  that at all times it shall have
                    at least the said sum to face the  payments to Starwood  for
                    maintenance services.

                    6) That  the  Trustee,  in  accordance  with  the  procedure
                    established  in  Clause  NINETEENTH  in the  Trust  for  the
                    Portfolio  and Fees,  as from the date in which it  receives
                    instructions  from  BANCOMER  indicating  that a default has
                    occurred to any of the terms and conditions of the Credit or
                    the Trusts in Guarantee,  shall deliver to BANCOMER each and
                    every one of the amounts it keeps and is receiving  from the
                    25 Portfolio,  Maintenance Fees, or any other, to be applied
                    under  the  terms  which  BANCOMER  shall  indicate,  in the
                    understanding that BANCOMER shall apply the Maintenance Fees
                    in the first place to pay Starwood and MEXITUR.

                    7) All those  provided  in the Trust for the  Portfolio  and
                    Fees.

               Besides the above, BANCOMER shall contract an external accounting
               auditor,  who may be from REGINA's current  auditors'  office, to
               carry out an aleatory sample of the Portfolio,  always  different
               and  statistically   selected,   for  the  purpose  of  examining
               half-yearly:

                    * The Control of  Collections  (the correct  application  of
               payments, for automatic charges and on-site payments, calendar of
               payments, control and application in the collection of interests,
               etc.).

                    Overdue Portfolio not exceeding 90 calendar days.

                    Promissory notes properly  documented  (amount,  signatures,
                    date of payment)

                    Promissory Notes properly endorsed in favor of the Trustee.

                    One of the  monthly  reports for the  immediately  foregoing
                    semester.

                    MEXITUR  shall also  prepare,  under its  responsibility,  a
                    monthly  report  of the  Portfolio,  under  the terms of the
                    Trust for the Portfolio and Fees.

NINETEENTH. CASES OF ANTICIPATED MATURITY

     BANCOMER  may consider as  anticipated  expiry of the period for the Credit
     herein  stipulated,  and demand the payment of the balance of the principal
     amount of the Credit and the Promissory Note, together with the accumulated
     and unpaid  interest,  and other  amounts that should be paid, in the event
     that BORROWER, any of the FOUNDERS OF THE TRUST, REGINA, MEXITUR, or any of
     the respective  Subsidiaries default on any of the obligations derived from
     the Credit Documents or from any other document in connection  thereto,  at
     all  times  complying  with  the  periods  provided  for in  the  execution
     proceedings set forth in the Guaranty trusts, including without limitation,
     the following:

          A) In  the  event  that  the  BORROWER  fails  to  punctually  pay  an
          exhibition of Capital,  interest or commissions in accordance with the
          provisions  established here_ under and/or in the Promissory Note that
          are  subscribed,  and other  amounts  payable in  accordance  with the
          Credit Documents-.

          B) In the event that the  BORROWER or any of the FOUNDERS OF THE TRUST
          default with any other credit contract  executed with any third party,
          if such default results in the anticipated expiry of the said credit.

                                       17
<PAGE>

          C) In the event that (i)  Starwood,  MEXITUR or REGINA fail to provide
          their  services or (ii) if they terminate the service or the operation
          and maintenance contract with Starwood, unless within the following 60
          working days after the situation,  a third party begins to provide the
          said  services  at an  efficiency  level  comparable  to that which is
          currently provided.

          D) In the event that REGINA  ceases to be  depositary of the rights of
          use of weeks or Time-share  intervals in any of the  facilities of the
          FOUNDERS OF THE TRUST.

          E) In the event that the  BORROWER or any of the FOUNDERS OF THE TRUST
          should  encumber or alienate  any of its fixed  assets  registered  in
          their acounting on the date of execution of this instrument, exceeding
          US $100,000.00 (ONE HUNDRED THOUSAND  DOLLARS 00/100)  annually,  with
          the exception of those encumbered with this Credit.

          F) In the event that the  BORROWER or any of the FOUNDERS OF THE TRUST
          i) should  declare  itself in bankrupcy or in  suspension of payments;
          ii) if it is intervened by any authority; iii) if it admits in writing
          its  incapacity  to pay its  debts  upon  maturity;  iv) if it makes a
          general assignment of properties in benefit of creditors; or (v) if it
          begins  and  continues  during  more  than  sixty  natural  days,  any
          proceeding  through  which it seeks  any of the  above,  or vi) in the
          event that  situations  should arise  affecting the  BORROWER'S or the
          FOUNDERS OF THE TRUST'S,  REGINA'S or MEXITUR's good operations, or of
          any of its respective  Subsidiaries  that can endanger the economic or
          financial stability of any one of them.

          G) In  the  event  that  any  of  the  Trusts  in  Guarantee  are  not
          constituted in accordance with the agreements contained hereunder,  if
          it fails to have the desired  effects of the value of the guarantee or
          declines  in such a way that it does not comply  ith the  measurements
          herein provided, or in the event that due to any cause the FOUNDERS OF
          THE TRUST apply the funds from the  Collection of  Memberships or Fees
          for the payment of debts of any other kind

          H) In the event that the BORROWER'S  stockholders  meetings, or of any
          of the  FOUNDERS  OF THE TRUST,  REGINA,  MEXITUR,  or of any of their
          respective  Affilates  or  Subsidiaries  should at any time during the
          period of the  credit,  resolve  to decree the  payment of  dividends,
          applying  amounts  derived or from the Maintenance  fees,  except with
          BANCOMER's previous written authorization.

          I) In the event that the BORROWER, any of the FOUNDERS OF THE TRUST, ,
          REGINA,  MEXITUR,  reduce the fixed portion of their corporate capital
          stock.

          J) In the event that the  BORROWER or any of the FOUNDERS OF THE TRUST
          do not deliver to BANCOMER the financial statements  representative of
          the economic  entity that  constitute its  Subsidiaries or Affiliates,
          including  the  annual  financial  statements,  which  shall  have the
          professional opinion from an Independent Public Accountant  acceptable
          to BANCOMER on the date of closing its  corporate  year as well as the
          financial  statements  prepared y its Administration  corresponding to
          natural  quarters with the accumulated  results for the  corresponding
          year.

          K) In the event that the BORROWER or any of the FOUNDERS OF THE TRUST,
          REGINA,  MEXITUR, or any if the respective  Affiliates or Subsidiaries
          abandon the Administration of their business.

          L) In the event that the BORROWER or any of the FOUNDERS OF THE TRUST,
          REGINA OR MEXITUR should  default,  with no justified  cause in any of
          their  local and  federal  fiscal  obligations,  as  taxpayers  and as
          retainers,  and with  respect to payments to the Mexican  Institute of
          Social Security (IMSS), to the Savings System for Retirement (SAR), or
          any other in connection with the operation of their business, and as a
          result,  the corresponding  authority  dictates a mandate of execution
          against it and is not attended on time and through proper  procedures,
          or if it is paid  within  the  following  60 (SIXTY)  natural  days or
          within the legally  applicable period to do so, whichsoever may result
          first.

          M) In the event that any of the  declarations or statements under oath
          to tell the Truth in any of the Credit  Documents  the  BORROWER or by
          any of its Subsidiaies should be false or inexact.

                                       18
<PAGE>

          N) In the event that any authority should expropriate,  attach, assume
          custody,  or take control of all or part of the BORROWER'S  properties
          or those of one of the  FOUNDERS OF THE TRUSTS,  REGINA'S or MEXITUR'S
          or those of their  respective  Subsidiaries  or Affiliates,  it should
          displace its present  administration,  or limit its faculty to operate
          the business.

          O) In the event that the  BORROWER or any of the FOUNDERS OF THE TRUST
          REGINA,  MEXITUR, or any of its respective subsidiaries should grant a
          bond or  guarantee , or if it  isjointly  and  severally  obligated in
          favor of third parties without the previous written authorization from
          BANCOMER, except in amounts not greater than 100,000 Pesos.

          P) In the event  that the  BORROWER'S  or any of the  FOUNDERS  OF THE
          TRUST,  REGINA,  MEXITUR's  or any of  their  respective  subsidiaries
          resolve to merge, liquidate or spin-off the corresponding company;

          Q) In the event  that the use of all or part of the public  areas,  or
          those  for  common  use in the  facilities  should  be  obstructed  or
          restricted,  the  FOUNDERS  OF  THE  TRUST,  or if  the  corresponding
          companies should be boxed-in, assigned, segregated, encumbered, merged
          or, due to any cause the use is obstructed or limited .

          R) In the event  that  during  the  period  of the  Credit,  Mr.  John
          McCarthy  Sandland  is  substituted  as a General  Director  or in the
          Administration  of the  time-share  Business,.  assuming that the need
          arises to  substitute  him, the BORROWER  shall  provide  BANCOMER the
          information about the person with whom it seeks to substitute him, and
          it shall obtain the previous  written  authorization  from BANCOMER to
          carry out this change,  which shall not be denied  without a justified
          cause.

          S) In the event that the  amount of the  Credit is not used  precisely
          for the purposes consigned in Clause Fifth hereunder.

          T) In the event that the BORROWER or any of the FOUNDERS OF THE TRUST,
          REGINA or MEXITUR OR ANY OF the respective  Subsidiaries or Affiliates
          cease to provide  BANCOMER the  information  or  documentation  it may
          request under the terms hereunder, and such deficiency is not remedied
          within  a  period  of  ten  natural  days,   when  the   corresponding
          information  is not found  subject to a period for delivery  under the
          terms of this contract.

          U) In the event that any of the  stipulations  or provisions of any of
          the Credit Documents should be null or unenforceable.

          V) In the event that the RRI  stockholders do not increase the capital
          of the said RRI in at least  two  million  dollars  within  the  three
          months following the date of execution of this instrument, or, if RRI,
          individually  or  jointly  with the  BORROWER  has not  determined  to
          BANCOMER'S  satisfaction  the mechanism  under which it shall face the
          payment of the said ordinary  interest derived from the Emission,  and
          under the said supposition,  the BORROWER,  the FOUNDERS OF THE TRUST,
          MEXITUR  or REGINA  have not  constituted  a new  company  within  the
          following  five  Working  Days which will result the  isolation of any
          adverse situation in the operation,  reservation system, collection of
          the Portfolio and  Maintenance  Fees,  in the  understanding  that the
          shares or the corporate parts of the corporate capital of the said new
          company shall be  contributed  to the Trust for the Portfolio and Fees
          within twenty four hours after the date in which they are issued.

          W) In the event that, at least three months prior to the date in which
          the  interests  derived  from the  Emmission  should be  covered,  the
          BORROWER  does not  demonstrate  to  BANCOMER  that it has an adequate
          mechanism to pay the said interest.

TWENTIETH.-   PARTICIPATIONS

     At all times,  BANCOMER  shall be entitled to syndicate or  sub-participate
     the credit  totally  or  partially,  keeping  the same  conditions  for the
     BORROWER  through the simple  written  notification  to the said  BORROWER,
     indicating such syndication or  sub-participation,  provided that costs for
     the BORROWER are not increased.

                                       19
<PAGE>
TWENTY FIRST. MODIFICATIONS

     No modification of terms or conditions in this  instrument,  and no consent
     or exemption with respect to any of the said terms and conditions  shall be
     effective in any case,  unless it is made in writing and is  subscribed  by
     the parties,  and even then such  modification,  exemption or consent shall
     only be  effective  for the  specific  case and  purposes  for which it was
     granted.

TWENTY SECOND.   NOTIFICATIONS

     All notifications and communications  anticipated or required in accordance
     with this contract shall be made in writing, and shall be delivered or sent
     to each party to the  addresses  indicated in this Clause,  or to any other
     address  that the said party may  indicate in writing to the others.  These
     notifications and communications shall be effective upon being delivered in
     the above  expressed  form, and no  notification  shall be effective  until
     after  it has  been  effectively  received  by the  party  to  which  it is
     intended.

     With respect to the above,  and for all matters  relative to this  document
     and  other  Credit  Documents,  to the  Trusts in  Guarantee  and any other
     document  in  relation   Thereto,   the  parties  establish  the  following
     addresses:

          THE BORROWER                  Boulevard  Adolfo Ruiz Cortines
          No. 3642 THE FOUNDERS OF
          THE TRUST                     Floor 7
          MEXITUR AND REGINA            Colonia Jardines del Pedregal
                                        Postal Code 01900
                                        Mexico, Federal District

          BANCOMER                      Avenida Universidad No. 1200
                                        Colonia Xoco
                                        Postal Code 03339
                                        Mexico, Federal District

          THE TRUSTEE                   Avenida Universidad No. 1200
                                        Colonia Xoco
                                        Postal Code 01900
                                        Mexico, Federal District

TWENTY THIRD.- Authorization to receive and provide information.

     BORROWER  and any  obligee  here under  hereby  expressly  and  irrevocably
     authorized BANCOMER to obtain any and all information concerning credit and
     other  transactions  of such companies with BANCOMER or with any other bank
     or company.  Up on request of third  parties,  BANCOMER may provide  credit
     history information of the borrower or any obligee her under to other users
     of credit bureaus, as well as any domestic or foreign rating agency.

TWENTY FOURTH.- JURISDICTION

     For all matters  relative to this instrument,  the other Credit  documents,
     the Trusts in Guarantee  and the  documents in  connection  with or derived
     therefore,  the  parties  expressly  submit  to  the  jurisdiction  of  the
     competent courts in the City of Mexico, Federal District, waiving any other
     jurisdiction  that might  correspond  to them by virtue of their present or
     future domiciles, or due to any other reason.

                                       20
<PAGE>
TWENTY FIFTH.- APPLICABLE LAW

     This Contract and the other Credit  Documents shall interpret the agreement
     to the Laws in effect in the United Mexican States.

     In  Testimony of the above,  the parties  hereunder  sign this  Contract in
     Mexico City, D.F. on the twenty-sixth day of November, 1999-

 THE BORROWER                                 FOUNDERS OF THE TRUST
                                              CR Resorts Capital, S. de R.L. de
                                              C.V.,  CR Resorts Puerto Vallarta,
                                              S. de R.L. de C.V., CR Resorts
                                              Cancun, S. de R.L. de V.B.,
                                              CR Resorts Los Cabos, S. de R.L.
                                              de C.V.- Desarrollos Turisticos
                                              Integrales de Cozumel, S. deR.L.
                                              de C.V.

-- ---- - - -- - - - - - - - -                   - - - - - - - - - - - - - - - -
By:  John McCarthy Sandland                   By:  John McCarthy Sandland
  Attorney-in-Fact                                             Attorney-in-Fact

            MEXITUR                                                REGINA
Corporacion Mexitur, S. de R.L. de C.V.         Club Regina, S.A. de C.V.

- - - - - - - - - - - - -- - - - -               - - - - - - - - - - - - - - - -
By  John McCarthy Sandland                      By  John McCarthy Sandland
     Attorney-in-Fact                                          Attorney-in-Fact

       BANCOMER                                  THE TRUSTEE
    Bancomer, S.A.                               Fianzas Monterrey Aetna, S.A.
Institucion de Banca Multiple                    Bancomer Financial Group
    Financial Group

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By:  Ing. Carlos D. Velazques Thierry            By:  Lic. ArmandoVignau Quiros
     Director Corporate bank                          Fiduciary Delegate

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By Dr. Gerardo Salazar Viezca
Corporate Bank

                                       21July 30, 1999

Beta Oil & Gas, Inc.

901 Dove Street, Suite 230

Newport beach, CA 92660

Attention:  Mr. J. Chris Steinhauser

               Chief Financial Officer and Director

RE:  Participation Agreement

       NE Hitchcock Prospect

       Greens Lake Area

       Galveston County, Texas

Dear Mr. Steinhauser:

This is the Participation Agreement between Texoil Company
(“Texoil”) and Beta Oil & Gas, Inc. (” Beta” or
“Non-Operator”) relative to the drilling of Initial Test Well(s) and
subsequent operations in and on Texoil’s NE Hitchcock Prospect, Greens Lake
Area, Galveston County, Texas. You are entering into another Participation
Agreement for the Sarah White Prospect simultaneously with this agreement. The
terms of this Participation Agreement are as follows: 

1.

OPERATING AGREEMENT

1.1  Concurrently  with the execution of this  Agreement,  the parties hereto are executing the attached  Operating
Agreement,  identified  as  Exhibit  "A" and made a part  hereof  for all  purposes  ("Operating  Agreement").  The
Operating Agreement designates  Cliffwood  Production Co. as "Operator".  Cliffwood Production Co. will control all
operations on the lands and leases  covered by this  Participation  Agreement.  In the event of a conflict  between
the Participation Agreement and the Operating Agreement, then the Participation Agreement shall prevail.

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Participation Agreement
NE Hitchcock
Prospect
Beta Oil & Gas, Inc.

1.2 The liens and security interests granted to Non-Operator by
Cliffwood Production Co., as Operator, and Texoil Company, as Non-Operator
(“Texoil Companies”) under Article VII.B. of the Operating Agreement
(a) shall attach to the interests of both the Texoil Companies owned or
hereafter acquired by either of the Texoil Companies within the Contract Area
for the Operating Agreement including the oil, gas and mineral leases and
personal property or fixtures on or used or obtained for use in connection
therewith, to secure the performance of all of the obligations of both of the
Texoil Companies under the Operating Agreement, including, but not limited to,
those set forth in Article VII.B. of the Operating Agreement, and (b) shall
include all of the interests and rights set forth in Article VII.B. The other
Non-Operators shall have all of the applicable rights and remedies described in
Articles VII.B., and the Texoil Companies shall have all of the applicable
obligations described in Article VII.B., the same as if fully set forth in this
Section. 

1.3 If Texoil Company, its affiliates or joint ventures
controlled by Texoil Company or its affiliates, no longer own an interest in the
Contract Area, Cliffwood Production Co. shall resign as Operator, except for
selection of a new Operator pursuant to the Operating Agreement. 

2.

LEASES AND LEASE BURDENS

        Texoil
represents that it is the present owner and holder of the Oil, Gas and Mineral
Leases described on Exhibit “A” to the Operating Agreement
(“Leases”) covering approximately 3021.91 gross and 1703.28 net acres,
subject to the royalty interests reserved by the Lessors and overriding
royalties in the amount of two percent (2%) in favor of Dennis Drake in the
Leases and any overriding royalties reserved by Texoil pursuant to Section 4.2
hereof (“Lease Burdens”). 

3.

PROSPECT ACQUISITION FEE

3.1      As  consideration  for Beta's  interest in the Leases and the geological and  geophysical  information and
data  furnished  by Texoil,  Beta  agrees to pay Texoil  the sum of  Twenty-Five  Thousand  and  No/100ths  Dollars
($25,000.00),  in cash, with the execution of this  Participation  Agreement as a "Prospect  Acquisition  Fee". The
Prospect

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Participation Agreement
NE Hitchcock
Prospect
Beta Oil & Gas, Inc.

Acquisition Fee does not include costs related to the drilling
of the Initial Test Well or the cost of oil, gas and mineral leases acquired
subsequent to the date of this Participation Agreement, nor does it include the
rental costs subsequent to the date of this Agreement due for any of the Leases
in the prospect. 

3.2 Furthermore, upon execution of this Participation Agreement,
Beta will pay Texoil the amount of $74,613.14 representing one-half of all sums
paid by Texoil to Burlington Resources Oil & Gas Company
(“Burlington”), presently estimated at $149,226.28 pursuant to that
certain Letter Agreement dated July 1, 1999, whereby Texoil exchanged interests
with Burlington and became Operator of the subject prospect area and paid
outstanding invoices related to the prospect (“BR Costs”). Within
thirty (30) days from Beta’s execution of this Participation Agreement,
Texoil will prepare and submit to Beta a comprehensive accounting of all sums
paid to Burlington. Should the total cost be less than $149,226.28, Texoil
agrees to reimburse Beta for any credits due. 

3.3 Thereafter, Beta and Texoil will bear equally on a 50/50
basis all costs related to the prospect (excepting drilling) including, but not
limited to, any and all lease acquisition costs and rentals. Burlington
presently controls thirty percent (30%) of this prospect. The initial interest
will be owned approximately thirty-five percent (35%) each for both Beta and
Texoil and thirty percent (30%) for Burlington. Attached hereto are land plats
showing the NE Hitchcock Prospect being separated as to prospective Vicksburg
acreage (Exhibit “B”) and Non-Vicksburg acreage (Exhibit
“C”), and a schedule identifying the future estimated costs of lease
maintenance for the area. Texoil anticipates that Burlington’s working
interest in this prospect will be reduced by its election not to pay rentals or
renew leases. Should Burlington withdraw from the prospect by non-payment of
delay rentals or election not to renew Leases, then the interests of Texoil and
Beta shall increase equally and proportionately for any Leases Burlington
surrenders up to an anticipated fifty percent (50%) for both Beta and Texoil in
the subject prospect. 

3.4 Should drilling be proposed while Burlington still owns an
interest and should Burlington elect not to participate in the Initial Test Well
and farmout such interest or make a non-consent election as to such interest,
the burdens created by such farmout or assumed pursuant to the non-consent
election will be borne equally by Texoil and Beta. 

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Participation Agreement
NE Hitchcock
Prospect
Beta Oil & Gas, Inc.

4.

INTEREST OWNERSHIP & MARKETING

4.1 Beta intends to retain a twenty-five percent (25%) working
interest in the prospect. Texoil intends to retain a twelve and one-half percent
(12.5%) working interest in the prospect (“Intended Working
Interest”). 

4.2 Beta and Texoil agree to jointly  solicit  industry  partners for drilling  operations  separately for the
       Vicksburg  and  Non-Vicksburg  acreage.  Texoil has discussed  this prospect with (1) IP Petroleum  Company,
       Inc.,  (2) LLOG  Exploration  Company,  (3)  Energy  Group  USA,  (4)  Pruet  Offshore  Company,  (5)  Basin
       Exploration,  Inc., (6) Vastar Resources, Inc., (7) Hallwood Petroleum, Inc., (8) Howard Exploration,  Inc.;
       and (9) Quantum Energy  Partners,  L. P.  ("Quantum",  an energy  investment  entity who is expected to make
       certain  referrals of  prospective  partners).  Should any of these entities or referrals from Quantum elect
       to participate  in this prospect,  cost  recoveries  and promoted or retained  interests  shall be shared as
       follows:

   (a)Cash proceeds from the sale of interests to the above  excepted  entities and referrals from Quantum shall
            be shared  equally by Beta and Texoil until such time as Beta  recovers the Prospect  Acquisition  Fee,
            BR Costs,  leasehold  and related  costs.  Thereafter,  all cash  proceeds  from the sale of  interests
            shall be allocated one-hundred percent (100%) to Texoil.

   (b)Texoil shall  retain an  overriding  royalty  interest  equal to the  difference  between (i)  twenty-five
            percent (25%) and (ii) the sum of lessors' royalty and overriding royalty in favor of Dennis Drake.

   (c)Any carried or  reversionary  interests  resulting  from sales of interests  to the excepted  entities and
            referrals from Quantum will be retained entirely by Texoil.

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Participation Agreement
NE Hitchcock
Prospect
Beta Oil & Gas, Inc.

Subject to the exceptions for the aforementioned entities and referrals
from Quantum, cost recoveries and promoted interests shall be shared as follows: 

   (d) Cash  proceeds  from the sale of  interests  to third  parties  shall be shared  equally by Beta and Texoil
             until such time as Beta  recovers  the  Prospect  Acquisition  Fee,  BR Costs,  leasehold  and related
             costs.  Thereafter,  all cash  proceeds  from the sale of  interests  shall be  allocated  one-hundred
             percent (100%) to Texoil.

   (e) Texoil  shall  retain an  overriding  royalty  interest  equal to the  difference  between (i)  twenty-five
           percent (25%) and (ii) the sum of lessors' royalty and overriding royalty in favor of Dennis Drake.

   (f) Subject to Article 4.4 below,  any carried or  reversionary  interests  resulting  from sales of  interests
          to third parties shall be shared three-fourths (3/4) by Texoil and one-fourth (1/4) by Beta.

4.3 For purposes of allocating cash proceeds pursuant to Article
4.2 above, Beta shall be entitled to recover from fifty percent (50%) of such
proceeds, all prospect leasehold and related costs for both the NE Hitchcock and
Sarah White Prospects on a combined basis prior to allocating one-hundred
percent (100%) of all proceeds thereafter to Texoil. 

4.4 In connection with the marketing of the prospect to third
parties, Beta and Texoil may elect to reduce their Intended Working Interest
participation in the Vicksburg acreage only and Beta will be entitled to retain
any carried and/or reversionary interests received in the sale to third parties
equal to the difference between Beta’s original Intended Working Interest
and Beta’s reduced working interest. Schedule A attached hereto provides an
example. 

5.

ASSIGNMENT

   Within fifteen (15) days following Beta's  acceptance of this  Participation  Agreement and payment of the
Prospect  Acquisition  Fee and the  $74,613.14,  Texoil  will  execute  and  deliver  an  Assignment  to Beta of an
undivided  twenty-five  percent (25%) working  interest in and to the oil and gas leases  currently owned by Texoil
in this  prospect.  The  Assignment  will be made with a  special  warranty  and be  subject  to the Lease  Burdens
identified in Article 2.

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Participation Agreement
NE Hitchcock
Prospect
Beta Oil & Gas, Inc.

6.

TITLE MATERIAL

Within  ninety  (90) days from the date of this  Participation  Agreement  and at the  written  request of
Beta, Texoil will furnish Beta with copies of all the Leases and any corresponding  title material  associated with
the prospect.

7.

INITIAL TEST WELLS

7.1 Before operations are commenced on the Initial Test Well, Operator
will furnish Beta with an Authority For Expenditure (“AFE”) to drill,
evaluate and plug and abandon the well(s). No more than thirty (30) days before
operations are commenced on the well, Operator will call for Beta’s working
interest share of the AFE, and Beta will pay its share of the AFE within twenty
(20) days following receipt of the AFE. If Beta has not paid its share of AFE
costs within said twenty (20) days, then Operator will send a final notice to
Beta, granting Beta an additional five (5) business days to pay Beta’s
share of said AFE costs. It is anticipated that one Initial Test Well will be
drilled each on (a) the non-Vicksburg acreage and (b)the Vicksburg acreage. This
provision shall apply to Initial Test Well(s) on either acreage. If all
Non-Operators (including new participants) do not tender the AFE costs and
Texoil does not drill the Initial Test Well(s), Texoil will return to Beta its
AFE costs applicable to the specific Initial Test Well. 

7.2 In the event Beta fails to timely pay its share of the AFE,
Beta’s rights hereunder will terminate without notice and the interest of
Beta shall be subject to Article 9 below. Neither the Prospect Acquisition Fee,
BR costs or any other funds previously paid will be refunded. 

7.3 Subject to the receipt of the amount of the AFE from all  Non-Operators,  availability  of a suitable  drilling
rig and approval of title to the  drillsite  Lease,  Operator  will  commence  operations to drill the Initial Test
Well at a legal  location that is  acceptable to all  Non-Operators.  Operator will  thereafter  drill said Initial
Test Well with due diligence and in a workmanlike manner to the depth agreed upon between the parties. The

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Participation Agreement
NE Hitchcock
Prospect
Beta Oil & Gas, Inc.

estimated objective formation(s) and depths of the Initial Test
Well are (i) the (1) 12,900’ Morris sand and (2) 13,575’ Lower
“S” sand with an anticipated total depth of 14,200’ for the
non-Vicksburg acreage and (ii) the 17,500’ Vicksburg sand for the Vicksburg
acreage. The objective formation and depths as to each Initial Test Well are
defined as “Authorized Depth”. 

7.4 At such time as the Initial Test Well has been drilled to
the Authorized Depth agreed upon by the parties, Operator will run a Dual
Induction or other equivalent open hole electrical log from the total depth
drilled to the bottom of the surface casing, and such other methods and tools of
evaluation that will insure proper evaluation of all formations in the well
indicating hydrocarbons, if under the then existing conditions, such methods of
evaluation are prudent (“Casing Point”). 

7.5 Within twenty-four (24) hours following Casing Point and all
logs, cores, and other tests have been completed, and the results thereof
furnished to the Non-Operator(s), each Non-Operator shall elect to: 

   (a)complete the well as an oil or gas well, or

   (b)deepen the well, or

   (c)sidetrack the well, or

   (d)plug and abandon the well.

7.6 An election by a Non-Operator or Non-Operators representing
the largest percentage interest in the Initial Test Well, to complete the well
as an oil or gas well shall take precedence over an election to deepen the well,
which shall take precedence over an election to sidetrack the well, which shall
take precedence over an election to plug and abandon the well; provided,
however, that said well will not be plugged and abandoned if at least one
Non-Operator elects to complete said well and agrees to bear all costs
attributable to such operation. If Non-Operators cannot agree on the sand or
formation in which to complete the well, an election by a Non-Operator or
Non-Operators representing the largest percentage interest in the well to
complete in a deeper sand or formation shall take precedence over an election to
complete in a shallower sand or formation. 

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Participation Agreement
NE Hitchcock
Prospect
Beta Oil & Gas, Inc.

7.7 If less than all Non-Operators elect to complete the well as
an oil or gas well, deepen or sidetrack the well, Article VI.B.2. of the
Operating Agreement shall not apply to such operations and the interest of the
non-participating Non-Operators shall be subject to Article 9 below. 

8.

RELEASE OF LEASES & PAYMENT OF RENTAL
OBLIGATIONS

8.1 If a Non-Operator elects to release, surrender or otherwise
let a Lease or interest therein expire, the interest of the party electing to
surrender a Lease shall be subject to Article 9 below. 

8.2 Operator will be responsible for preparing and circulating
monthly delay rental obligation calendars to the Non-Operators. Monthly delay
rental calendars will be provided to the Non-Operators within forty-five (45)
days of a rental becoming due. Upon receipt of the calendar, Non-Operators will
have fifteen (15) days from receipt to make a formal written election. Failure
to respond within the fifteen (15) day time period will result in a forfeiture
of Non-Operators interest in and to those Leases. Non-Operators will then be
subject to the provisions of Article 9 below. 

9.

DEFAULT/NON-CONSENT

9.1  In the event a Non-Operator:

   (a)fails to timely pay in advance its share of the AFE for the Initial Test Well(s);

   (b)elects not to  participate in the  completion,  deepening or  sidetracking  of the Initial Test Well(s) at
             Casing Point;

   (c)elects to release a Lease or fails to pay for a Lease, renewal or extension; and

   (d)elects not to pay a delay rental obligation

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Participation Agreement
NE Hitchcock
Prospect
Beta Oil & Gas, Inc.

and if the “Non-Consent Operation(s)", as defined
below, are conducted timely, the “Non-Consenting Party”, as defined
below, shall reassign all of its interest in the well or Leases to those parties
who have elected to acquire the interest of the Non-Consenting Party
(“Available Interest”). Provided, however, (i) if Beta participated in
drilling the Initial Test Well to the Authorized Depth, and (ii) the
Non-Operators representing the largest percentage interest in the Initial Test
Well elected to deepen or sidetrack such well, and (iii) Beta elects not to
participate in the deepening or sidetracking operation, then Beta shall retain
all its rights down to the depth drilled prior to such deepening or sidetracking
operation and only the interest of Beta in the deepening or sidetracking
operation as to the applicable Vicksburg or non-Vicksburg acreage within the
Contract Area to which the Initial Test Well applies shall be subject to Section
9.3 below. 

9.2 The elections pursuant to 9.1 (a) – (d) above are
herein referred to as “Non-Consent Operation(s)” and such
non-participating or defaulting Non-Operator is referred to as a
“Non-Consenting Party”. 

9.3 Operator will advise the other Non-Operators of the amount
of Available Interest. The other Non-Operators will, within twenty-four (24)
hours (exclusive of Saturdays, Sundays and legal holidays) after receipt of such
notice, advise Operator of each Non-Operator’s election to: 

   (a)limit  such  Non-Operator's  interest  in the well,  operation  or Lease to which the  Available  Interest
          applies, to such Non-Operator's original interest; or

   (b)in addition to such Non-Operator's  original interest,  acquire such Non-Operator's  proportionate  share,
          or more, of the Available Interest.

9.4 Failure to timely advise Operator of (a) or (b) above shall
constitute an election to limit participation to such Non-Operator’s
original interest, under (a) above.

9.5 If the non-defaulting parties do not acquire all of the
Available Interest, Texoil will use its best efforts to obtain new participants
for the remaining Available Interest under terms and conditions of Texoil’s
choice. In the event Texoil receives an offer from a prospective participant for
the Available Interest on terms more favorable than the terms on which
Non-Operators acquired their interest, Texoil shall not be required to offer
such more favorable terms to Non-Operators. 

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Participation Agreement
NE Hitchcock
Prospect
Beta Oil & Gas, Inc.

9.6 Reassignment of the Available Interest by a Non-Consenting Party
shall be made immediately upon demand, without warranty, except as against the
acts of the assignor and free and clear of overriding royalty or similar burden,
except the Lease Burdens. Reassignment shall not relieve such Non-Consenting
Party of obligations and liabilities incurred prior to the date of the
Non-Consent Operation. 

10.

MISCELLANEOUS

10.1 Beta or its representatives shall have the right, from time
to time, by appointment, to review and interpret, during normal business hours,
any seismic, lease data or other records in the possession of Texoil without
charge to Beta. 

10.2 This Participation Agreement will extend to and be binding
upon Beta and Texoil, their representatives, successors and assigns forever. 

10.3 Texoil agrees to use its best efforts to advise Beta prior to
executing any agreements with additional working interest participants in this
prospect. Beta will have the right to approve the proposed new participant.
Beta’s approval will not be unreasonably withheld. 

10.4 If  Cliffwood  Production  Co.  elects not to operate this  prospect,  Beta will have the right to approve the
proposed new Operator.  Beta's approval will not be unreasonably withheld.

10.5 Beta and Texoil agree that the lands identified on the plat
attached hereto as Exhibit “D” represent the lands subject to the Area
of Mutual Interest (“AMI”). Relevant terms of the AMI are set forth in
Article XVI E of the Operating Agreement attached hereto as Exhibit
“A”. 

Page 11
Participation Agreement
NE Hitchcock
Prospect
Beta 
Oil & Gas, Inc.

If the foregoing correctly reflects Beta’s understanding of
the Participation Agreement, return one (1) executed copy of the Participation
Agreement, the Prospect Acquisition Fee and $74,613.14 to Texoil on or before,
5:00 p.m., September 16, 1999. If this Participation Agreement is not timely
executed and returned this Participation Agreement may not thereafter be
accepted without Texoil’s written consent. 

Sincerely,
Texoil Company
Cliffwood Production Co.

By:/s/Frank Lodzinski

     Frank A. Lodzinski

     President

AGREED TO AND ACCEPTED this 14th day of September, 1999.

BETA OIL & GAS, INC.

By:/s/ J. Chris Steinhauser

Printed Name:J. CHris Steinhauser

Title:Chief Financial Officer

P:/Land:/Word:/PARTICIPATION AGMT

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