Document:

Exhibit 10.16

                              EMPLOYMENT AGREEMENT

THIS  AGREEMENT is made and entered into as of this 15th day of June 2001 by and
between HERC Products Inc., a Delaware  corporation (the  "Corporation")  and S.
STEVEN CARL ("Executive").

A.   The Corporation has employed Executive as its President and Chief Executive
     Officer and wishes to continue to employ Executive in such capacities.

B.   Executive  is willing to be  employed by the  Corporation  on the terms and
     conditions set forth below.

The Corporation and Executive agree as follows:

1.   EMPLOYMENT.

     (a)  The  Corporation  will employ  Executive  as its  President  and Chief
          Executive Officer. Executive will also serve in such other capacities,
          as the Board of Directors of the  Corporation  shall  reasonably  deem
          necessary.  Executive  will  perform such duties as may be required of
          him by the Corporation under and subject to the instruction, direction
          and control of the Board of Directors of the Corporation.

     (b)  The  Corporation  will use its best  efforts to elect  Executive  as a
          director of the Corporation during the term of this Agreement.

2.   DEVOTION TO EMPLOYMENT.

     Executive  accepts  employment  with  the  Corporation  on  the  terms  and
     conditions of this Agreement,  and will devote all of his business time and
     effort to perform his duties on behalf of the  Corporation  in his position
     as set forth in Section 1, provided,  however, that nothing herein shall be
     construed  to  prevent  Executive  from  making  and  supervising  personal
     investments.  During  the term of this  Agreement,  Executive  shall not be
     actively  engaged  in any other  business  activity  which  will in any way
     impair his ability to properly meet his  obligations to the  Corporation or
     represent any activity  competitive  with the Corporation or detrimental to
     its  business.  Executive  agrees to comply with the  reasonable  policies,
     standards and regulations of the Corporation from time to time established.

3.   COMPENSATION AND BENEFITS.

     The Corporation  agrees to pay Executive  compensation  for his services as
     follows:

     3.1  BASE SALARY.

          The Corporation  will pay Executive an annual base salary,  subject to
          withholding taxes and other normal payroll deductions,  at the rate of
          $145,000 per year for the term of this agreement.

     3.2  BONUSES.

          In addition to  Executive's  salary,  Executive  shall be paid a bonus
          equal to the percentage  specified below of the  Corporation's  annual
          EBITDA,   not  including   extraordinary   accounting  events  or  any
          accounting  impact from  discontinued  operations,  during each of the
          periods specified below during which this Agreement is in effect.  Any
          bonus  earned  pursuant  to the  preceding  sentence  shall be paid to
          Executive  in cash or stock of the  Company  within 30 days  after the
          amount thereof has been determined by HERC's independent  auditors. If
          the  Executive  is paid in stock the closing bid price for December 31
<PAGE>
          of the  year  within  which  the  bonus  is due  shall be used for the
          calculation  of the amount of stock.  Executive  may also receive such
          other bonuses and increases in Base Salary,  if any, as may be awarded
          to him from  time to time by the  Corporation's  Board  of  Directors:

                    Period                             Percentage

                    1/1/2001 - 12/31/2001              7.5 %

     3.3  BENEFITS.

          Executive shall be entitled to such medical, dental, disability,  life
          insurance  and  other  benefits  and  perquisites,  if  any,  no  less
          favorable than such as are afforded to other senior  executives of the
          Corporation,   subject  to  applicable   waiting   periods  and  other
          conditions.  Medical,  dental and other  health  insurance  shall also
          provide  coverage for Executive's  spouse and dependent  children,  if
          any.  Executive  shall be  entitled to three weeks of vacation in each
          employment  year and to a  reasonable  number  of  other  days off for
          religious and personal reasons.

     3.4  BUSINESS EXPENSES.

          The   Corporation   will   pay  or   reimburse   Executive   for   all
          transportation,  hotel  and  other  expenses  reasonably  incurred  by
          Executive  on  business  trips and for all other  ordinary  reasonable
          out-of-pocket  expenses actually incurred by him in the conduct of the
          business of the Corporation  against itemized vouchers  submitted with
          respect to any such  expenses  approved in accordance  with  customary
          procedures.

     3.5  AUTO ALLOWANCE.

          The  Corporation  shall  either,  at  the  Corporation's  option,  pay
          Executive  the sum of $500 per month as an  automobile  allowance  for
          business  use or  provide  Executive  with a suitable  automobile  for
          business use at the expense of the Corporation.

4.   TERM.

     The term of this Agreement shall commence as of the date thereof, and shall
     continue for a term of one (1) year,  unless sooner  terminated as provided
     herein.  This  agreement  is subject to automatic  renewal  under the terms
     hereof for one year periods  provided,  however,  that on or before six (6)
     months prior to the termination date under paragraph 5 hereof, upon written
     notice  provided to the  Executive  by the Company or to the Company by the
     Executive,  the  terms of this  Agreement  shall be  renegotioated  between
     Executive  and  Company  or  written  notice of intent  to  terminate  this
     Agreement shall otherwise be given on such date.

5.   TERMINATION.

     This Agreement  shall  terminate prior to the end of its term: (a) upon the
     death of  Executive,  or (b) if  Executive  fails,  because  of  illness or
     incapacity,  to render the services  contemplated  by this  Agreement for a
     period of six  consecutive  months.  The  Corporation  may  terminate  this
     Agreement prior to the end of its term for cause,  upon notice to Executive
     by the Corporation.  As used herein, "cause" shall mean: (a) the refusal or
     failure  by  Executive  to carry out  specific  directions  of the Board of
     Directors of the Corporation  which are of a material nature and consistent
     with his status as Chairman  of the Board,  President  and Chief  Executive
     Officer,  or the refusal or failure by Executive to perform a material part
     of  Executive's  duties  hereunder,  or a  breach  of  any  of  Executive's
     fiduciary duties to the Corporation;  (b) fraudulent or dishonest action by
     Executive in his relations with the  Corporation or any of its  Affiliates,
     or with any  customer  or  business  contact  of the  Company or any of its
     Affiliates ("dishonest" for these purposes shall mean Executive's knowingly
     or  recklessly  making  of a  material  misstatement  or  omission  for his
<PAGE>
     personal  benefit);  or (c)  the  conviction  of  Executive  of  any  crime
     involving an act of moral  turpitude.  Notwithstanding  the  foregoing,  no
     "cause"  for  termination   shall  be  deemed  to  exist  with  respect  to
     Executive's  acts  described in clause (a) above  unless the Company  shall
     have  given  written  notice  to  Executive  specifying  the  "cause"  with
     reasonable  particularity and, within five business days after such notice,
     Executive  shall not have cured or  eliminated  the problem or thing giving
     rise to such of cause.

6.   RESIGNATION AS DIRECTOR.

     If, for any  reason,  (a)  Executive  terminates  his  employment  with the
     Corporation, or (b) the Corporation terminates Executive's employment under
     the terms of this  Agreement,  or (c) this Agreement  expires without being
     renewed or extended,  then Executive  will resign as a director,  effective
     upon  the  occurrence  of such  termination  or  expiration,  whichever  is
     applicable.

7.   PROTECTION OF CONFIDENTIAL INFORMATION; NON-COMPETITION.

     7.1  CONFIDENTIAL INFORMATION.

          Executive  warrants that he is not subject to any  restriction  on his
          executing and performing this Agreement, and acknowledges that:

          (a)  As a result of his employment by the  Corporation,  Executive has
               obtained  and will  obtain  secret and  confidential  information
               concerning the business of the  Corporation  and its  Affiliates,
               including, without limitation, financial information, patents and
               other   proprietary   rights,   trade  secrets  and   "know-how,"
               customers,     and    certain    methodologies     ("Confidential
               Information").

          (b)  The  Corporation  and  its  Affiliates  will  suffer  substantial
               damage,  which will be difficult to compute if, during the period
               of his employment with the  Corporation or thereafter,  Executive
               should divulge Confidential Information or, thereafter, Executive
               should   enter  a   business   competitive   with  those  of  the
               Corporation.

          (c)  The provisions of this Agreement are reasonable and necessary for
               the  protection  of the  business  of  the  Corporation  and  its
               Affiliates.

     7.2  MAINTAIN CONFIDENTIALITY.

          Executive agrees that he will not at any time,  either during the term
          of this Agreement or  thereafter,  divulge to any person or entity any
          Confidential Information obtained or learned by him as a result of his
          employment with the  Corporation or any of its Affiliates,  except (a)
          in the  course  of  performing  his  duties  hereunder,  (b)  with the
          Corporation's express written consent; (c) to the extent that any such
          information  is in  the  public  domain  other  than  as a  result  of
          Executive's breach of any of his obligations  hereunder;  or (d) where
          required to be disclosed by court order  subpoena or other  government
          process. If Executive shall be required to make disclosure pursuant to
          the  provisions  of clause (d) of the  preceding  sentence,  Executive
          promptly,  but in no event more than 72 hours  after  learning of such
          subpoena,  court order, or other government process,  shall notify, by
          personal  delivery or by  electronic  means,  confirmed  by mail,  the
          Corporation and, at the  Corporation's  expense,  Executive shall: (i)
          take all reasonably  necessary  steps  required by the  Corporation to
          defend against the enforcement of such subpoena,  court order or other
          government  process,  and (ii) permit the Corporation to intervene and
          participate  with counsel of its choice in any proceeding  relating to
          the enforcement thereof.
<PAGE>

     7.3  RECORDS.

          Upon  termination of his employment  with the  Corporation,  Executive
          will  promptly  deliver to the  Corporation  all  original  memoranda,
          notes, records, reports, manuals,  drawings,  blueprints,  formula and
          other  documents  relating to the business of the  Corporation and its
          Affiliates and all property  associated  therewith,  which he may then
          possess or have under his control;  provided,  however, that Executive
          shall be  entitled  to  retain  copies  of such  documents  reasonably
          necessary  to  document  his  financial  relationship  (both  past and
          future) with the Corporation.

     7.4  NON-COMPETE.

          During  the  term of this  Agreement  and  the  eighteen-month  period
          following  the   termination  of  Executive's   employment   with  the
          Corporation under the terms of this Agreement,  Executive, without the
          prior written  permission of the Corporation,  shall not,  anywhere in
          the United States of America,  directly or indirectly,  (a) enter into
          the  employ  of  or  render  any  services  to  any  person,  firm  or
          corporation engaged in any business which is a "Competitive  Business"
          (as defined below); (b) engage in any Competitive Business for his own
          account;  (c) become  associated with or interested in any Competitive
          Business as an individual,  partner, shareholder,  creditor, director,
          officer, principal, agent, employee, trustee,  consultant,  advisor or
          in any other  relationship or capacity;  (d) employ or retain, or have
          or cause any other  person or entity to employ or  retain,  any person
          who was  employed  or  retained by the  Corporation  in the  six-month
          period prior to the  termination  of  Executive's  employment;  or (e)
          solicit,   interfere  with,  or  endeavor  to  entice  away  from  the
          Corporation,  for the benefit of a  Competitive  Business,  any of its
          customers or other persons with whom the Corporation has a contractual
          relationship.  However,  nothing  in  this  Agreement  shall  preclude
          Executive from investing his personal  assets in the securities of any
          corporation or other business entity which is engaged in a Competitive
          Business if such securities are traded on a national stock exchange or
          in the over-the-counter  market and if such investment does not result
          in  his  beneficially  owning,  at  any  time,  more  than  1% of  the
          publicly-traded equity securities of such Competitive Business.

     7.5  INJUNCTIVE RELIEF.

          If Executive  breaches,  or threatens to breach, any of the provisions
          of Sections 7.2, 7.3 or 7.4, the Corporation  shall have the right and
          remedy to have the provisions of this Agreement  specifically enforced
          by any court having equity  jurisdiction,  it being  acknowledged  and
          agreed by Executive that the services being rendered  hereunder to the
          Corporation are of a special,  unique and extraordinary  character and
          that any such  breach or  threatened  breach  will  cause  irreparable
          injury to the  Corporation  and that money damages will not provide an
          adequate remedy in the Corporation.

     7.6  MODIFICATION OF SCOPE.

          If any  provision  of Section  7.2 or 7.4 is held to be  unenforceable
          because  of the  scope,  duration  or area of its  applicability,  the
          tribunal making such determination shall have the power to modify such
          scope,  duration,  or area,  or all of them,  and  such  provision  or
          provisions shall then be applicable in such modified form.

8.   DEFINITIONS. As used in this Agreement:

     8.1. "Affiliate"  shall mean any entity that,  directly or  indirectly,  is
          controlled  by,   controlling,   or  under  common  control  with  the
          Corporation.

     8.2. "Competitive  Business"  shall  mean  a  business  which  is  directly
          competitive  with any business  engaged in by the  Corporation  or any
          Affiliate of the Corporation.
<PAGE>
8.   NOTICES.

     All notices  provided  for by this  Agreement  shall be made in writing and
     shall be deemed given when (a)  personally  delivered to the party entitled
     to receive it: (b)  transmitted  by electronic  means;  or (c) mailed first
     class mail, by certified mail, return receipt  requested,  addressed to the
     person  entitled  to it at the  address  set forth  below (or at such other
     address as may have been designated by written notice). The notice shall be
     deemed to be  received  on the date of its actual  delivery  or  electronic
     transmission to the party entitled thereto, or three days after mailing. If
     sent to the Corporation, notices shall be delivered to:

            HERC Products Incorporated
            2215 West Melinda Lane, Suite A
            Phoenix, Arizona 85027
            Attention: Chairman of the Board of Directors Compensation Committee
            Telecopier: (623) 492-9324

and, if sent to Executive, notices shall be delivered to:

            S. Steven Carl
            c/o HERC Products Incorporated
            2215 West Melinda Lane, Suite A
            Phoenix, Arizona 85027
            Telecopier: (623) 492-9324

            Marked "Personal and Confidential"

9.   ASSIGNMENT.

     The rights and benefits of the  Corporation  under this Agreement  shall be
     transferable, and all covenants and agreements hereunder shall inure to the
     benefit of and be enforceable by, its successors and assigns. Executive may
     not assign  this  Agreement,  but it shall  inure to the  benefit of and be
     binding upon his heirs and legal representatives.

10.  ARBITRATION.

     In the event of any dispute between the parties as to the interpretation of
     any of the terms and  provisions  of this  agreement,  the matter  shall be
     submitted to arbitration in the following manner:

     Either  party  shall  serve  written  notice upon the other party that they
     desire to submit the dispute to arbitration and within fifteen (15) days of
     the date of any such written  notice each party shall appoint an arbitrator
     within ten (10) days  thereafter  the two  arbitrators  so  selected  shall
     appoint  a third.  In the event  either  party  shall  fail to  appoint  an
     arbitrator  within such  fifteen-day  period or if the two  arbitrators  so
     appointed shall fail to select a third within such ten-day  period,  then a
     judge of the  Superior  Court of Maricopa  County,  Arizona,  or such other
     court as may have jurisdiction thereover shall appoint such arbitrator. The
     three  arbitrators  shall  determine the controversy in accordance with the
     Rules  of  the  American  Arbitration  Association  and a  decision  of the
     majority of the arbitrators  shall bind and be conclusive upon the parties.
     The parties shall pay the expense of arbitration  in the manner  determined
     by the  arbitrators and judgment upon the award rendered by the arbitrators
     may, if permissible, be entered in any court having jurisdiction.

11.  MISCELLANEOUS.

     11.1 GOVERNING LAW.

          This Agreement  shall be governed by and construed in accordance  with
          the laws of the State of Arizona.
<PAGE>
     11.2 WAIVER.

          No waiver or  modification  of this Agreement shall be valid unless in
          writing and duly executed by the party to be charged therewith. Waiver
          by either  party hereto of any breach or default by the other party of
          any of the terms and provisions of this Agreement shall not operate as
          a waiver  of any  other  breach  or  default,  whether  similar  to or
          different from the breach or default waiver.

     11.3 SEVERABILITY.

          All agreements, provisions, representations,  warranties and covenants
          contained herein are severable,  and in the event that any one or more
          of them shall be held to be invalid,  illegal or  unenforceable in any
          respect by any court of competent jurisdiction, the validity, legality
          and enforceability of the remaining  provisions contained herein shall
          not in any way be  affected  thereby,  and  this  Agreement  shall  be
          interpreted as if such invalid,  illegal or unenforceable  agreements,
          provisions or covenants were not contained herein.

     11.4 ENTIRE AGREEMENT.

          This  Agreement   constitutes  and  embodies  the  full  and  complete
          understanding  and  agreement  of the  parties  hereto  provided,  and
          supersedes all prior understandings or agreements,  whether oral or in
          writing.

The parties have executed this Agreement the day and year first above written.

HERC Products Incorporated

By: Michael Harader                     S. Steven Carl: /s/ S. Steven Carl
    -------------------------------                     ------------------------

Signature: /s/ Michael Harader
           ------------------------
Title: CFO
       ----------------------------Exhibit 10.43

                                  AMENDMENT TO
                                 LOAN DOCUMENTS
                                 (KOHL'S RANCH)

     This Amendment to Loan Documents  ("Amendment") is made and entered into as
of  October  31,  2001 by and  between  ILX  Resorts  Incorporated,  an  Arizona
corporation  ("ILX");  Los Abrigados  Partners Limited  Partnership,  an Arizona
limited partnership ("Abrigados"), Premiere Development Incorporated, an Arizona
corporation  ("Premiere"),  ILE  Sedona  Incorporated,  an  Arizona  corporation
("ILE"),  VCA Tucson  Incorporated,  an Arizona corporation ("VCA Tucson"),  VCA
South Bend  Incorporated,  an Arizona  corporation  ("VCA  South  Bend") and VCA
Nevada Incorporated,  an Arizona Corporation ("VCA Nevada")  (collectively,  the
"ILX Entities") whose address is 2111 East Highland Avenue,  Suite 210, Phoenix,
AZ 85016;  and Litchfield  Financial  Corporation,  a Massachusetts  corporation
("Lender"),  whose address is 13701 West Jewell Avenue, Suite 200, Lakewood,  CO
80228.

                                   RECITALS:

     A.  Under  date of March 19,  1999 ILX and  Lender  entered  into a certain
Secured  Construction Loan Agreement pertaining to, INTER ALIA, Lender's loan to
ILX in the amount of $2,830,000.00 for the purpose of financing the construction
of improvements at the Kohl's Ranch project located in or near Payson,  Arizona.
This Secured Construction Loan Agreement was subsequently  modified by a certain
May 7, 1999 letter agreement by and between Borrower and Lender,  and a June 11,
1999 letter from Lender to  Borrower  (collectively,  the "Letter  Agreements"),
which  pertain,  INTER ALIA, to the amount and  application  of certain  release
prices to be paid by Borrower to Lender.  The loan contemplated by the foregoing
documents  is  hereinafter  referred  to as the  "Kohl's  Ranch  Loan"  and  the
documents  executed in connection  therewith are hereinafter  referred to as the
"Kohl's Ranch Documents".

     B. Under date of November  24, 1998 certain of the ILX Entities as Borrower
and  Lender  entered  into  a  certain   Secured  Loan  Agreement  (ILX  Resorts
Incorporated:  San Carlos  Inventory  Development,  Los  Abrigados  Sales Center
Construction,  Term Loan  Restatement  Project).  This  Secured  Loan  Agreement
pertained,  INTER ALIA,  to a loan from Lender to the ILX Entities in the amount
of  $2,300,000.00  for the  purpose  of  acquiring  and  developing  timesharing
inventory located at the San Carlos Resort,  Guaymas,  Senora,  Mexico (the "San
Carlos  Inventory   Development  Loan")  and  $800,000.00  for  the  purpose  of
constructing a new sales center to be located at Los Abrigados  Resort,  Sedona,
Arizona (the "Sales Center Loan"). The San Carlos Inventory Development Loan and
Sales Center Loan were evidenced by a  $3,100,000.00  Secured  Construction  and
Inventory Development  Promissory Note dated November 24, 1998. Pursuant to this
Secured Loan  Agreement,  a certain July 29, 1998 Secured Term  Promissory  Note
from the ILX Entities to Lender in original  principal  amount of  $2,485,000.00
was amended and restated and, in connection therewith, the ILX Entities executed
and delivered to Lender a certain Amended and Restated  Secured  Promissory Note
in original  principal amount of $2,485,000.00,  pertaining to the Los Abrigados
Resort  (the  "Restated   Loan".   Hereinafter,   the  loans  described  in  the
aforementioned  November  24, 1998  Secured  Loan  Agreement  are  referred  to,
collectively,  as the  "Combination  Loan," and the loan  documents  executed in
connection therewith are referred to as the "Combination Loan Documents."

     C. Under date of June 12, 1998  certain of the ILX Entities as Borrower and
Lender  entered into a certain  Secured Line of Credit  Lending  Agreement  (ILX
Resorts - Global Facility) pertaining, INTER ALIA, to a $40,000,000.00 loan from
Lender to Borrower secured,  INTER ALIA, by Pledged Accounts.  Hereinafter,  the
loan  contemplated by the aforesaid Secured Line of Credit Lending Agreement and
the  loan  described  therein  is  referred  to as the  "Global  Loan,"  and the
documents  executed in connection  therewith are referred to as the "Global Loan
Documents".

     D. Under date of September 17, 1998 certain of the ILX Entities as Borrower
and Lender  entered into a certain  Amended and Restated  Secured Line of Credit
Lending Agreement (ILX Incorporated) pertaining,  INTER ALIA, to a $3,500,000.00
loan  from  Lender  to  Borrower  secured,  INTER  ALIA,  by  Pledged  Accounts.
Hereinafter, the loan contemplated by the aforesaid Amended and Restated Secured
Line of Credit Lending Agreement is referred to as the "Non Conforming Loan" and
the  documents  executed in  connection  therewith  are  referred to as the "Non
Conforming Loan Documents."
<PAGE>
     E. ILX has requested that Lender increase the maximum  principal  amount of
the Kohl's Ranch Loan from  $2,830,000.00  to$8,030,000  for the purpose,  INTER
ALIA, of the providing of funding for the  improvements of certain real property
owned or leased by the ILX Entities including the projects located in Las Vegas,
Nevada known as The Greens of Las Vegas Golf  Center,  the Bell Rock Inn located
in Oak Creek,  Arizona and The  Carriage  House,  and the Los  Abrigados  Resort
located in Sedona, Arizona, as more fully set forth below.

     F. As a condition to granting  ILX's  request to increase the amount of the
Kohl's Ranch Loan,  Lender requires  certain  modifications  to the various Loan
Documents referenced above, as hereinafter set forth.

     The parties  desire to enter into this  Amendment  in order to  memorialize
their agreements with respect to the foregoing as hereinafter set forth.

                                   AGREEMENTS:

     In consideration of the foregoing  Recitals,  which are incorporated herein
by reference,  the covenants and  agreements  hereinafter  set forth,  the legal
adequacy and  sufficiency of which are hereby  acknowledged,  the parties hereby
agree:

     1.  AMENDMENT  CONTROLS.  In the case of any conflict  between the terms of
this  Amendment  and the  provisions  of the above  described  Kohl's Ranch Loan
Documents,  the Combination  Loan  Documents,  the Non Conforming Loan Documents
and/or the Global  Loan  Documents  (collectively,  the "Loan  Documents"),  the
provisions of this Amendment  shall  control.  Except as  specifically  modified
hereby,  the parties hereby ratify,  reaffirm,  and restate the terms of each of
said Loan Documents.

     2. DEFINED TERMS.  Any  capitalized  term not defined herein shall have the
meaning set forth in the applicable Loan Documents referenced above.

     3. STATUS OF LOANS. As of September 30, 2001 the outstanding balance on the
above-described Loans are as follows:

         LOAN                               PRINCIPAL BALANCE AS OF 9/30/01
         ----                               -------------------------------
Kohl's Ranch Loan                                    $ 1,638,432.15
San Carlos Inventory Development Loan                $         0.00
The Sales Center Loan                                $         0.00
The Restated Loan                                    $   931,375.55
The Global Loan                                      $16,774,927.96
Non Conforming Loan                                  $   390,207.59

The ILX Entities, and each of them, hereby acknowledge that Lender is current in
the performance of all  obligations  under the  above-referenced  Loans and Loan
Documents,  and as of the date set forth in the  introduction to this Amendment,
the ILX  Entities,  collectively,  and each of them  individually,  warrant  and
represent  that they  have no  defenses,  set-offs,  or  counterclaims  to their
liability to Lender under the subject Loans or the Loan Documents  pertaining to
same.  Without waiving the generality of the foregoing and in  consideration  of
Lender's execution of this Amendment,  and in further  consideration of Lender's
agreement to increase the maximum  principal  amount of the Kohl's Ranch Loan to
$8,030,000.00  as  hereinafter  provided,  the  ILX  Entities  individually  and
collectively  hereby waive and release any and all counterclaims,  set-offs,  or
defenses against  liability under the subject Loans or Loan Documents arising on
or before the date of this Amendment.
<PAGE>
     4. AMENDMENTS KOHL'S RANCH LOAN AND KOHL'S RANCH LOAN DOCUMENTS. The Kohl's
Ranch Loan and Kohl's Ranch Loan  Documents are hereby  amended in the following
respects:

          a.  INCREASE IN MAXIMUM OF KOHL'S RANCH LOAN..  The maximum  principal
amount of the  Kohl's  Ranch  Loan is hereby  increased  from  $2,830,000.00  to
$8,030,000.00

          b. EXTENSION OF KOHL'S RANCH LOAN BORROWING PERIOD.  The period during
which Lender will make non-revolving Advances to Borrower pursuant to the Kohl's
Ranch Loan Documents as modified  hereby,  is hereby  extended to March 31, 2003
(the "Extended Borrowing Period"). During the Extended Borrowing Period Borrower
shall continue to make regular minimum quarterly principal reduction payments in
the amount of $176,813.00 per quarter.

          c. EXTENSION OF LOAN TERM AND INCREASE IN MINIMUM QUARTERLY  PRINCIPAL
REDUCTION  PAYMENTS..  The  Maturity  Date of the  Kohl's  Ranch  Loan is hereby
extended  from  April  15,  2003 to April 1,  2006,  at  which  time all  unpaid
principal and interest shall be fully due and payable.. The maturity date of the
Kohl's Ranch Loan is subject to acceleration if an Event of Default shall occur.
From and after the end of the  Extended  Borrowing  Period  referenced  above in
paragraph  4.b.,  the minimum  quarterly  principal  reduction  payment shall be
increased from  $176,813.00  (which shall be paid during the Extended  Borrowing
Period) to an amount equal to one twelfth of the principal  balance  outstanding
on the Kohl's Ranch Loan on the last day of the Extended  Borrowing  Period.  By
way of example,  in the event the principal balance is $6,000,000.00 on the last
day of the Extended Borrowing Period, the minimum quarterly  principal reduction
payment would be $500,000.00 ($6,000,000.00 divided by 12) per quarter until the
Kohl's Ranch Loan is paid in full.

          d. AMOUNT AND APPLICATION OF RELEASE FEES..  The amount of the release
fee payable to Lender  pursuant to the Kohl's  Ranch Loan  Documents  and/or the
Combination  Loan  Documents on or after the effective date of this Amendment is
hereby amended as follows:

<TABLE>
<CAPTION>
                                                               NEW RELEASE FEE PURSUANT
                                         PRIOR RELEASE FEE           TO AMENDMENT
                                      ---------------------    ------------------------
RESORT                                  ANNUAL     BIANNUAL      ANNUAL        BIANNUAL
------                                  ------     --------      ------        --------
<S>                                   <C>         <C>          <C>            <C>
Stand-alone (non-club) Kohl's Ranch   $1,500.00   $  900.00    $1,500.00      $  900.00
Stand-alone(non-club)Los Abrigados    $1,200.00   $  720.00    $1,200.00      $  720.00
         Premiere Vacation Club       $1,000.00   $  580.00    $1,920.00      $1,152.00
</TABLE>

*

          e. APPLICATION OF RELEASE FEES.. The revised release fees as set forth
above shall be applied to the Kohl's  Ranch Loan until the Kohl's  Ranch Loan is
paid in full.  The foregoing  application of release fees shall apply unless and
until an Event of  Default  occurs.  If an Event of Default  occurs,  Lender may
apply the release fees to obligations owed Lender by the ILX Entities, or any of
them, as Lender determines,  in Lender's sole discretion.  Lender may adjust the
above-described  release  fees if and as  necessary  in order to assure that the
Kohl's Ranch Loan as modified hereby is repaid in full on or before 80% sell-out
of existing Vacation  Ownership  Interests owned by the ILX Entities and pledged
to  Lender,  in  which  Lender  has a first  priority  duly  perfected  security
interest.  Subject to Lender's  consent (not to be  unreasonably  withheld) upon
payment of the foregoing  release fee, the  applicable  borrower  shall have the
right to designate which intervals are released.

          f. USE OF  INCREASED  KOHL'S RANCH LOAN  PROCEEDS.  From and after the
date  hereof,  Advances of the Kohl's  Ranch Loan may be used for the  following
purposes only:

--------
*    Not  applicable  - All San Carlos  inventory  has been  annexed to Premiere
     Vacation Club ("PVC")
<PAGE>
               (i) PROJECT  IMPROVEMENTS..  Advances  may be used for  effecting
improvements (the "Improvement Advances") as follows to the following projects.

                    A. THE  GREENS OF LAS VEGAS and Joey's  Restaurant.  Up to a
maximum of $1,500,000.00 of the Kohl's Ranch Loan proceeds shall be used to fund
improvements  (furniture,  fixtures,  equipment  and  minor  remodeling,  but no
material  new  construction)  to The Greens of Las Vegas Golf  Center  leasehold
estate  including  renovation  and equipping the ILX Sales Center,  office space
therein and Joeyss.s Restaurant to be located in the Carriage House,  located in
Las Vegas, Nevada.

                    B. LOS ABRIGADOS RESORT. Up to a maximum of $1,000,000.00 of
the Kohl's Ranch Loan proceeds  shall be used to fund  improvements  (furniture,
fixtures,  equipment and more extensive remodeling, to include new construction)
to the old sales center of the Los  Abrigados  Resort,  in order to convert same
into eight additional  residential  units.  These additional  residential  units
shall be subject to the lien of the deed of trust  encumbering the Los Abrigados
Resort for the benefit of Lender.

                    C. KOHL'S  RANCH..  Up to a maximum of $500,000.00 of the of
the Kohl's Ranch Loan proceeds  shall be used to fund  improvements  (furniture,
fixtures,   and  equipment  and  more   extensive   remodeling  to  include  new
construction) to the certain  residential units within the Kohl's Ranch project,
including the Platinum Unit.

                    D. BELL ROCK INN.  Up to a maximum of  $1,200,000.00  of the
Kohl's  Ranch  Loan  proceeds  shall  be used to fund  improvements  (furniture,
fixtures,  equipment and minor remodeling,  but no material new construction) to
the Bell Rock Inn.

               (ii) SEDONA  WORLDWIDE INC. STOCK  PURCHASE..  Up to a maximum of
$1,000,000.00  of the Kohl's Ranch Loan proceeds shall be Advanced to fund ILX's
purchase of 8,000,000  shares of Sedona  Worldwide  Inc. (the "Sedona  Worldwide
Advance").

              (iii) SUMS DUE LENDER.. The balance of the increased Kohl's Ranch
Loan funding may be used for the purpose,  and solely for the purpose,  of ILX's
payment of sums due Lender including,  without limitation,  the Modification Fee
described below in the amount of $10,000.00,  the 1% Advance Fee due Lender with
respect to any Advance under the Kohl's Ranch Loan,  and the payment of Lender's
Expenses incurred in connection with this Amendment.

          g. NOTICE  PROVISIONS..  Any notices to Lender  pursuant to the Kohl's
Ranch Loan Documents, shall be made as follows:

          If to Lender:  Litchfield Financial Corporation
                         13701 West Jewell Avenue, Suite 200
                         Lakewood, CO  80228
                         Attention: Alicia-Ann J. Duncanson, Loan Manager
                         Facsimile:  (303) 985-5375

          with copy to:  Textron Financial Corporation
                         333 East River Drive
                         East Hartford, CT 06108
                         Attention: Nicholas Mecca, Division President
                         Facsimile:(860) 283-9053

          and:           Textron Financial Corporation
                         40 Westminster Street
                         Providence, RI 02903
                         Attention: Legal Department
                         Facsimile: (401) 621-5040
<PAGE>
          with copy to:  James E. Brown, Esq.
                         James E. Brown & Associates, P.C.
                         1350 17th Street, Suite 306
                         Denver, CO  80202
                         Facsimile: (303) 825-2828

          h.  CROSS-COLLATERALIZATION AND CROSS DEFAULT.. The collateral pledged
for the Kohl's Ranch Loan also  collateralizes  the Combination Loan, the Global
Loan,  the Non Conforming  Loan and any other loan or obligation,  now or in the
future,  from the ILX  Entities,  their  affiliates,  or any of them, to Lender.
Likewise,  the  collateral  pledged to secure the  Combination  Loan, the Global
Loan, the Non Conforming Loan or any other  obligation now or in the future owed
by the ILX Entities,  or any of them, or any of their  affiliates to Lender also
collateralizes  the Kohl's Ranch Loan. Subject to the provisions set forth above
in paragraph 4.e.  concerning the application of release fees,  Lender may apply
the  collateral  or  proceeds  thereof  it  receives  to any of the  obligations
collateralized thereby, in Lender's sole discretion. Likewise, the occurrence of
an Event of Default  under the Kohl's  Ranch Loan shall  constitute  an Event of
Default under the Combination Loan, the Global Loan, the Non Conforming Loan and
any other loan or obligation now or in the future, from the ILX Entities,  their
affiliates,  or any of them  to  Lender,  and an  Event  of  Default  under  the
Combination Loan, the Global Loan, the Non Conforming Loan, or any other loan or
obligation now or in the future from the ILX Entities, their affiliates,  or any
other of them,  to Lender,  shall be an Event of Default  under the Kohl's Ranch
Loan.

     5. CONDITIONS TO FUNDING.  Anything to the contrary herein notwithstanding,
Lender shall have no obligation to make any subsequent  Advance under the Kohl's
Ranch Loan unless and until each of the following  requirements are satisfied or
waived by Lender, in writing, in Lender's sole discretion:

          a. EXECUTION OF  DOCUMENTS..  The ILX Entities shall have executed and
delivered  to Lender  (or cause to be  recorded  or filed  for  record  with the
appropriate governmental office) the following documents in connection herewith:
(i) this Amendment,  (ii) the Allonge to Secured Construction Promissory Note in
the form appended hereto as EXHIBIT A, (iii) a Supplemental  Security  Agreement
in the form  appended  hereto as  EXHIBIT  B, (iv)  UCC-1  Financing  Statements
evidencing and  perfecting  Lender's  first  priority  security  interest in the
additional collateral described in the Supplemental  Security Agreement;  (v) an
Amended and Restated Deed of Trust  encumbering  all now and hereafter  acquired
timeshare  intervals  and units  owned by and/or  conveyed  to PVC  (other  than
intervals  located in the Carriage  House,  in Las Vegas Nevada,  which shall be
excluded  from said  Amended and  Restated  Deed of Trust) in the form  appended
hereto as EXHIBIT C, (vi) a Collateral  Assignment  of Lease with respect to the
Master Lease  between the County of Clark,  Nevada and ILX Resorts  Incorporated
pertaining to the Greens of Las Vegas in the form  appended  hereto as EXHIBIT D
(which  Collateral  Assignment of Lease will be released by Lender after the ILX
Entities have repaid  $2,000,000.00 of the additional  $5,200,000.0 to be loaned
by Lender  pursuant  to this  Amendment),  and (vii)  such  other  documents  or
agreements  as  may  be  reasonably  required  by  Lender,  including,   without
limitation, an opinion of counsel in form and substance satisfactory to Lender.

          b. NO EVENT OF DEFAULT.  No Event of Default shall have occurred,  nor
shall any  condition  exist  which,  with the  passage  of time or the giving of
notice, shall constitute an Event of Default.

          c.  PAYMENT OF  MODIFICATION  FEE.  ILX shall have paid  Lender a loan
modification  fee in the  amount of  $10,000.00  in  consideration  of  Lender's
execution of this Amendment.

          d. LENDER'S  EXPENSES.  ILX shall have paid Lender's Expenses incurred
in the  investigation,  negotiation,  preparation  and  administration  of  this
Amendment and related Loan Documents,  including,  without limitation,  Lender's
reasonable  attorneysss.  fees and costs,  and any fees and  expenses  of Lender
incurred  in  the  administration  of  the  subject  Loans,  including,  without
limitation,  any  expenses  incurred  by  Lender or any  construction  inspector
retained on behalf of Lender (including,  without  limitation,  travel costs) in
inspecting the subject projects or the improvements thereto.
<PAGE>
          e. ILX's  REPRESENTATIONS  AND  WARRANTIES.  Each  representation  and
warranty  of any of the ILX  Entities  in any  Loan  Document  shall be true and
correct. The ILX Entities hereby each ratify, restate,  reaffirm,  republish and
confirm the  representations,  warranties  and covenants set forth in the Kohl's
Ranch Loan  Documents,  the  Combination  Loan  Documents,  and the Global  Loan
Documents.  In addition, the ILX Entities hereby warrant and represent to Lender
that  Lender's  mortgage  and security  interest in all now owned and  hereafter
acquired  timeshare  intervals  and units  owned by and/or  conveyed to Premiere
Vacation Club (other than Carriage House  intervals,  in which Lender shall have
no security interest) is and will at all times be a properly perfected first and
prior security interest  therein,  and that no other creditor holds any security
interest in said  inventory save and except as follows:  Bank of Enid,  Oklahoma
holds a first priority deed of trust with respect to 1,827 Timesharing Intervals
located at VCA Tucson.

          f. CONDITIONS TO SPECIFIC ADVANCES.

               (i) IMPROVEMENT ADVANCES.

                    (A)  DISBURSEMENTS.  So long as no Event of  Default  shall
have occurred,  funds shall be disbursed by Lender for the purposes of effecting
the  improvements  to the projects  set forth above in paragraph  4.f.(i) not to
exceed the amounts set forth therein on the following terms and conditions.  All
requests  for  funding  shall be in  writing  and  shall be made  through  ILX's
completion and  submission of a  construction  loan request in the form appended
hereto as EXHIBIT E, or such  other form as Lender may  require.  ILX shall have
provided  Lender a written budget  satisfactory  to Lender in its discretion for
the improvements to be effected at the subject project,  supported by bids, cost
estimates,  contracts or other documentation  reasonably satisfactory to Lender,
which  budget  shall be  updated  in  writing  as  necessary  by ILX.  Each such
disbursement  shall be made on written  request  of ILX only for the  purpose of
funding the cost of improvements in place or materials delivered to the job site
and properly  installed or securely  stored  therein as evidenced by invoices or
other  documentation  reasonably  satisfactory to Lender, in accordance with the
plans and  specifications  therefore  supplied to and  approved by Lender in its
reasonable  discretion.  Lender shall have the right to make  inspections of the
subject   projects  and   improvements   and  all  the  improvements  for  which
disbursement   of  Loan  proceeds  shall  be  satisfactory  to  Lender  and  its
construction  inspector,  if any. All improvements to the subject project to the
date of  disbursement  shall  have  been  paid for in full (or  subject  only to
applicable  retainage)  as  evidenced  by lien  waivers  or other  documentation
reasonably  satisfactory  to  Lender.  With  respect  to  furniture,   fixtures,
equipment and personalty paid for in whole or in part by Advances,  Lender shall
have,  and the ILX  Entities  hereby  grant to Lender,  a duly  perfected  first
priority  security  interest  in  same.  The  cost  of  completing  the  subject
improvements  at no time  shall  exceed  the  undisbursed  balance  of the  Loan
proceeds  pertaining to the subject  project (and if the cost of completing  the
subject  improvements  at any time exceeds the  undisbursed  balance of the Loan
proceeds pertaining to the subject project,  ILX shall immediately pay to Lender
for deposit into a non-interest bearing Loan account an amount equal to any such
excess, which amounts shall be disbursed by Lender pursuant to the provisions of
this  paragraph).  No funds  shall be  advance  by Lender  for the  purposes  of
effecting  the  improvements  to the Bell Rock Inn until the ILX  Entities  have
executed and  delivered to Lender an  additional  security  agreement  and UCC-1
financing  statements  perfecting  Lender's security interests in the furniture,
fixtures, and equipment acquired with Lender's funding.

                    (B)  REPRESENTATIONS  AND  WARRANTIES..  Each  request for a
disbursement  for  improvement   purposes  constitutes  the  representation  and
warranty of the ILX Entities  that each of the  foregoing  conditions  have been
satisfied and that: the subject  disbursement will be used only for the purposes
set forth in the request for disbursement;  that all improvements to the subject
project have been paid in full; that no Event of Default or any condition which,
with the giving of notice or the passage of time,  would  constitute an Event of
Default, exists; that the balance of the Loan proceeds pertaining to the subject
project are sufficient to complete the improvements to the subject project;  and
that all other representations,  warranties, covenants and agreements of the ILX
Entities in this Amendment and the other Loan Documents are true and correct and
..

               (ii)  SEDONA  WORLDWIDE  ADVANCE..  Lender  shall fund the Sedona
Worldwide Advance only through an escrow pursuant to which the stock certificate
evidencing  ILX's  ownership of the 8,000,000  shares of Sedona  Worldwide  Inc.
purchased  therewith is delivered to Lender in order to perfect  Lender's  first
priority security  interest in such shares and their proceeds,  which ILX hereby
grants to Lender. On or before the Sedona Worldwide  Advance,  ILX shall execute
<PAGE>
and deliver to Lender a Stock Pledge And Security Agreement in the form appended
hereto as EXHIBIT F.

     6.  AMENDMENTS TO GLOBAL LOAN AND GLOBAL LOAN  DOCUMENTS..  The Global Loan
and Global Loan Documents are hereby amended in the following respects:

          a.  DECREASE IN MAXIMUM LINE  AMOUNT..  The Maximum Line Amount of the
Global Loan as set forth in the Global Loan  Documents is hereby  decreased from
$40,000,000.00 to $30,000,000.00.

          b. NOTICE  PROVISIONS.  Any  notices to Lender  pursuant to the Global
Loan Documents shall be made as follows:

          If to Lender:  Litchfield Financial Corporation
                         13701 West Jewell Avenue, Suite 200
                         Lakewood, CO  80228
                         Attention: Alicia-Ann J. Duncanson, Loan Manager
                         Facsimile: (303) 985-5375

          with copy to:  Textron Financial Corporation
                         333 East River Drive
                         East Hartford, CT 06108
                         Attention: Nicholas Mecca,
                         Division President
                         Facsimile: (860) 283-9053

          and:           Textron Financial Corporation
                         40 Westminster Street
                         Providence, RI 02903
                         Attention: Legal Department
                         Facsimile: (401) 621-5040

          with copy to:  James E. Brown, Esq.
                         James E. Brown & Associates, P.C.
                         1350 17th Street, Suite 306
                         Denver, CO  80202
                         Facsimile: (303) 825-2828

          c.  CROSS-COLLATERALIZATION AND CROSS DEFAULT.. The collateral pledged
for the Global Loan also  collateralizes  the Combination Loan, the Kohl's Ranch
Loan,  the Non  Conforming  Loan and any other loan or obligation  now or in the
future from the ILX  Entities,  their  affiliates,  or any of them,  to Lender..
Likewise,  the  collateral  pledged to secure the  Combination  Loan, the Kohl's
Ranch Loan, the Non Conforming Loan or any other obligation now or in the future
owed by the ILX Entities,  or any of them, or any of their  affiliates to Lender
also  collateralizes  the Global Loan. Subject to the provisions set forth above
in paragraph 4.e.  concerning the application of release fees,  Lender may apply
the  collateral  or  proceeds  thereof  it  receives  to any of the  obligations
collateralized thereby, in Lender's sole discretion. Likewise, the occurrence of
an Event of Default  under the Global Loan shall  constitute an Event of Default
under the  Combination  Loan, the Kohl's Ranch Loan, the Non Conforming Loan and
any other loan or obligation now or in the future, from the ILX Entities,  their
affiliates,  or any of them  to  Lender,  and an  Event  of  Default  under  the
Combination  Loan, the Kohl's Ranch Loan, the Non Conforming  Loan, or any other
loan or obligation now or in the future from the ILX Entities, their affiliates,
or any other of them,  to Lender,  shall be an Event of Default under the Global
Loan.

     7. AMENDMENT TO COMBINATION LOAN.. The Combination Loan and the Combination
Loan Documents are hereby amended as follows:
<PAGE>
          a.  MODIFICATION  AND  APPLICATION  OF RELEASE FEES.  The release fees
payable to Lender with respect to the Los Abrigados (Stand Alone) and San Carlos
project  (Premiere  Vacation  Club),  and the Premiere  Vacation Club,  shall be
amended and applied as set forth above in paragraphs 4.d. and 4.e.

          b.  NOTICE   PROVISIONS.   Any  notices  to  Lender  pursuant  to  the
Combination Loan Documents shall be made as follows:

          If to Lender:  Litchfield Financial Corporation
                         13701 West Jewell Avenue, Suite 200
                         Lakewood, CO  80228
                         Attention: Alicia-Ann J. Duncanson, Loan Manager
                         Facsimile: (303) 985-5375

          with copy to:  Textron Financial Corporation
                         333 East River Drive
                         East Hartford, CT 06108
                         Attention: Nicholas Mecca,
                         Division President
                         Facsimile: (860) 283-9053

          and:           Textron Financial Corporation
                         40 Westminster Street
                         Providence, RI 02903
                         Attention: Legal Department
                         Facsimile: (401) 621-5040

          with copy to:  James E. Brown, Esq.
                         James E. Brown & Associates, P.C.
                         1350 17th Street, Suite 306
                         Denver, CO  80202
                         Facsimile: (303) 825-2828

          c.  CROSS-COLLATERALIZATION AND CROSS DEFAULT.. The collateral pledged
for the Combination Loan, or any of them, also  collateralizes  the Global Loan,
the Kohl's  Ranch Loan,  the Non  Conforming  Loan,  as  modified  now or in the
future,  and any other  loan or  obligation  now or in the  future  from the ILX
Entities, their affiliates,  or any of them, to Lender. Likewise, the collateral
pledged to secure the Global  Loan,  the Kohl's Ranch Loan,  the Non  Conforming
Loan or any other  obligation now or in the future owed by the ILX Entities,  or
any of them,  or any of their  affiliates  to  Lender  also  collateralizes  the
Combination  Loan.  Subject to the  provisions set forth above in paragraph 4.e.
concerning the  application of release fees,  Lender may apply the collateral or
proceeds thereof it receives to any of the obligations  collateralized  thereby,
in Lender's sole  discretion.  Likewise,  the  occurrence of an Event of Default
under the Combination Loan shall constitute an Event of Default under the Global
Loans,  the Kohl's  Ranch Loan,  the Non  Conforming  Loan and any other loan or
obligation now or in the future, from the ILX Entities, their affiliates, or any
of them to Lender,  and an Event of Default  under the Global  Loan,  the Kohl's
Ranch Loan, the Non  Conforming  Loan, or any other loan or obligation now or in
the future from the ILX  Entities,  their  affiliates,  or any other of them, to
Lender, shall be an Event of Default under the Combination Loan.

     8. AMENDMENTS TO NON CONFORMING LOAN AND NON CONFORMING LOAN DOCUMENTS. The
Non Conforming  Loan and Non Conforming Loan Documents are hereby amended in the
following respects:

          a.  NOTICE  PROVISIONS..  Any  notices to Lender  pursuant  to the Non
Conforming Loan Documents shall be made as follows:

          If to Lender:  Litchfield Financial Corporation
                         13701 West Jewell Avenue, Suite 200
<PAGE>
                         Lakewood, CO  80228
                         Attention: Alicia-Ann J. Duncanson, Loan Manager
                         Facsimile: (303) 985-5375

          with copy to:  Textron Financial Corporation
                         333 East River Drive
                         East Hartford, CT 06108
                         Attention: Nicholas Mecca,
                         Division President
                         Facsimile: (860) 283-9053

          and:           Textron Financial Corporation
                         40 Westminster Street
                         Providence, RI 02903
                         Attention: Legal Department
                         Facsimile: (401) 621-5040

          with copy to:  James E. Brown, Esq.
                         James E. Brown & Associates, P.C.
                         1350 17th Street, Suite 306
                         Denver, CO  80202
                         Facsimile: (303) 825-2828

          b.  CROSS-COLLATERALIZATION AND CROSS DEFAULT.. The collateral pledged
for the Non  Conforming  Loan also  collateralizes  the Global Loan,  the Kohl's
Ranch Loan, the Combination  Loan and any other loan or obligation now or in the
future  from the ILX  Entities,  their  affiliates,  or any of them,  to Lender.
Likewise,  the  collateral  pledged to secure the Global Loan,  the Kohl's Ranch
Loan, the Combination Loan, or any other obligation now or in the future owed by
the ILX  Entities,  or any of them,  or any of their  affiliates  to Lender also
collateralizes  the Non  Conforming  Loan.  Subject to the  provisions set forth
above in paragraph 4.e.  concerning the application of release fees,  Lender may
apply the collateral or proceeds  thereof it receives to any of the  obligations
collateralized thereby, in Lender's sole discretion. Likewise, the occurrence of
an Event of Default under the Non Conforming  Loan shall  constitute an Event of
Default under the Global Loans,  the Kohl's Ranch Loan, the Combination Loan and
any other loan or obligation now or in the future, from the ILX Entities,  their
affiliates,  or any of them to Lender,  and an Event of Default under the Global
Loan,  the  Kohl's  Ranch  Loan,  the  Combination  Loan,  or any other  loan or
obligation now or in the future from the ILX Entities, their affiliates,  or any
other of them, to Lender,  shall be an Event of Default under the Non Conforming
Loan.

     9. GOVERNING LAW AND VENUE.  This Amendment shall be construed and enforced
according to the laws of the State of Colorado.  The parties stipulate and agree
that the  exclusive  jurisdiction  and venue for any dispute  arising under this
Amendment,  the Kohl's Ranch Loan Documents, the Combination Loan Documents, the
Global Loan Documents,  or any other Loan Document shall be in Jefferson County,
Colorado.  Provided,  however,  that  nothing  herein  shall  preclude  Lender's
institution  of  proceedings in the State of Arizona or any other state in which
any ILX Entity or affiliate maintains offices, facilities or assets.

     10. EXCLUSIVE RIGHT TO FINANCE. ILX hereby grants Lender and its successors
and assigns the following exclusive rights to provide financing to The Greens of
Las Vegas Golf Center as follows:

          a.   RECEIVABLES   FINANCING..   The  exclusive   right  to  purchase,
hypothecate or otherwise  finance all timeshare  sales,  club membership  sales,
receivables generated, originated or otherwise owned by the ILX Entities, or any
of them, or their successors,  assigns,  or any of their affiliated entities and
originated at The Greens of Las Vegas Golf Center.

     Provided,  however,  that the foregoing provisions shall not require Lender
to provide any such financing, and any such financing shall be evidenced only by
subsequent  written agreement  between the parties,  and shall be subject to the
<PAGE>
approval  of Lender and its Credit  Committee,  in their sole  discretion.  And,
provided further,  that if Lender  acknowledges in writing that Lender is unable
or  unwilling  to provide  the  above-described  financing,  ILX may obtain said
financing from other sources.

     11. MISCELLANEOUS.

          a.  WAIVER..  No waiver by Lender of any  default or breach by the ILX
Entities or any of them hereunder or under the other Loan  Documents  referenced
herein  shall be implied  from any  omission by Lender to take,  or any delay in
taking,  action on account of such default other than the default expressly made
the subject of the waiver and any such express  waiver  shall be operative  only
for the time and to the extent therein stated. Any waiver of any covenant,  term
or  condition  contained  herein  shall  not be  construed  as a  waiver  of any
subsequent  breach of the same  covenant,  term or  condition.  The  consent  or
approval by Lender to or of any act by the ILX Entities or any of them requiring
further  consent or approval shall not be deemed to waive or render  unnecessary
the consent or approval to or of any  subsequent  similar  act.  Notwithstanding
anything set forth herein to the  contrary,  if no notice of a default or waiver
is required  hereunder  and none has been given,  Lender  shall not be deemed to
have  waived  any  rights  which  it may have  hereunder  until  seven  (7) days
following  receipt by it of written  notice from the ILX Entities or any of them
alerting  Lender  to the fact that the time for  exercising  any right or remedy
hereunder has elapsed without  exercise thereof and such time for exercise shall
automatically be extended to seven (7) days following  notice,  said right shall
conclusively  be deemed  to have  been  waived  by  Lender.  The  intent of this
paragraph  is to avoid  unintentional  waivers  by Lender  of any of its  rights
hereunder.

          b. NO DUTY OF LENDER.  Nothing in this Amendment shall impose or imply
any duty or obligation whatsoever upon Lender, and Lender shall be under no duty
to take any action to  preserve  rights of the ILX  Entities or any of them with
respect  to any of the  security  held by Lender  for the  Obligations.  The ILX
Entities  or any of them  waive  any  and  all  impairment  of  recourse  and/or
impairment of collateral  defenses which it may possess  against the Lender.

          c. SURVIVAL. The warranties,  representations and agreements set forth
herein survive the closing hereof.

          d. MERGER.  This  Amendment  represents  the  culmination of all prior
negotiations,  representations,  and agreements between the parties with respect
to the  purchase  and sale  contemplated  hereby.  All such prior  negotiations,
representations, and agreements are merged herein.

          e. PREPARATION OF AMENDMENT.. The parties hereto acknowledge that this
Amendment has been  negotiated  and prepared in an arms-length  transaction  and
that both Lender and the ILX Entities and each of them have  negotiated  all the
terms contained herein. Accordingly,  the parties agree that neither party shall
be  deemed  to have  drafted  the  Amendment  and  the  Amendment  shall  not be
interpreted against any party as the draftsman.

          f. OTHER ACTS AND DOCUMENTS. The parties agree to undertake such other
acts and execute such other  documents as may be reasonably  necessary to effect
the purpose and intent of this Amendment.

          g. ADVICE OF COUNSEL.  Each party  acknowledges to the other that such
party has been advised by legal counsel in connection  with the  negotiation and
execution  of this  Amendment  and that  each  party  understands  the terms and
conditions  contained  herein  and that each has  entered  into  this  Amendment
voluntarily.

          h. JURY WAIVER. THE ILX ENTITIES AND EACH OF THEM HEREBY KNOWINGLY AND
VOLUNTARILY  WAIVE  THEIR  RIGHT TO A JURY TRIAL IN THE EVENT OF ANY  DISPUTE OR
LITIGATION ARISING HEREUNDER OR UNDER ANY LOAN DOCUMENT OR ANY DOCUMENT EXECUTED
IN CONNECTION THEREWITH.

          i. COUNTERPARTS.  This Amendment may be executed in counterparts, each
of which shall  constitute an original,  but all of which taken  together  shall
constitute one and the same instrument.
<PAGE>
          j. FACSIMILE DELIVERY.  Counterparts of this Amendment may be executed
by facsimile signature, which shall be effective upon delivery of a copy of this
Amendment bearing said facsimile signature.

     IN WITNESS WHEREOF the parties hereto have set their hands and seals on the
day and date appearing above intending to be legally bound.

                                      ILX ENTITIES:
                                      ILX RESORTS INCORPORATED

                                      By:_______________________________________
                                         Joseph P. Martori, Chairman

                                      LOS ABRIGADOS PARTNERS LIMITED PARTNERSHIP

                                      By:_______________________________________

                                      Its:______________________________________

                                      PREMIERE DEVELOPMENT INCORPORATED

                                      By:_______________________________________

                                      Its:______________________________________
<PAGE>
                                      ILE SEDONA INCORPORATED

                                      By:_______________________________________

                                      Its:______________________________________

                                      VCA TUCSON INCORPORATED

                                      By:_______________________________________

                                      Its:______________________________________

                                      VCA SOUTH BEND INCORPORATED

                                      By:_______________________________________

                                      Its:______________________________________

                                      VCA NEVADA INCORPORATED

                                      By:_______________________________________

                                      Its:______________________________________

                                      LENDER:

                                      LITCHFIELD FINANCIAL CORPORATION

                                      By:_______________________________________

                                      Its:______________________________________

                                       4

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