Document:

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     NUMBER                                                         SHARES

LT
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   COMMON STOCK                                                 COMMON STOCK
                           LEISURE TRAVEL GROUP, INC.
              INCORPORATED UNDER THE LAWS OF THE STATE OF DELAWARE

                                             SEE REVERSE FOR CERTAIN DEFINITIONS
                                                     ---------------------
                                                     | CUSIP 52542R 10 6 |
                                                     ---------------------

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  THIS CERTIFIES THAT

  is the Owner of

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  FULLY PAID AND NONASSESSABLE SHARES OF THE COMMON STOCK, $.001 PAR VALUE, OF

                           LEISURE TRAVEL GROUP, INC.

transferable on the books of the Corporation by the holder hereof in person or
by duly authorized attorney upon surrender of this Certificate properly
endorsed. This Certificate is not valid unless countersigned by the Transfer
Agent and registered by the Registrar.
     Witness the facsimile seal of the Corporation and the facsimile signatures
of its duly authorized Officers.

Dated:

          /s/ Stephen Last     [LEISURE TRAVEL SEAL]      /s/Philip Mason
             ---------------                                ------------------
             SECRETARY                                      PRESIDENT

COUNTERSIGNED AND REGISTERED.
 CONTINENTAL STOCK TRANSFER & TRUST COMPANY
               (NEW YORK, N.Y.)
                                    TRANSFER AGENT
                                     AND REGISTRAR
BY

                              AUTHORIZED SIGNATURE

<PAGE>

<TABLE>
<CAPTION>

     The following abbreviations, when used in the inscription on the face of
this Certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:

<S>                                            <C>
TEN COM -as tenants in common                  UNIF GIFT MIN ACT-___________Custodian_______________
                                                                    (Cust)                (Minor)
TEN ENT -as tenants by the entireties
                                                                 under Uniform Gifts to Minor
JT TEN  -as Joint tenants with right of
         survivorship and not as tenants                         Act________________________________
         in common                                                               (State)

    Additional abbreviations may also be used though not in the above list.

For Value Received,______________________hereby sells, assigns and transfer unto

PLEASE PRINT OR TYPEWRITE IDENTIFYING NUMBER
AND NAME OF ASSIGNEE AS IT SHOULD APPEAR ON
CERTIFICATE AND SHOW ADDRESS
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------------------------------------------------------------------------- Shares
of the common Stock represented by the within Certificate, and do hereby
irrevocably constitute and appoint

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to transfer the said shares on the books of the within-named Corporation, with
full power of substitution in the premises.

Dated:__________________

                         X______________________________________________________

                         X______________________________________________________
                         NOTICE: The signature to this assignment must
                         correspond with the name as written upon the face
                         of the certificate, in every particular, without
                         alteration or enlargement or any change whatever.
                         Signatures of registered owners on this
                         certificate or on powers of attorney, and
                         signatures of attorneys on this certificate or on
                         powers of substitution, must be guaranteed.

Signature Guaranteed:_________________________

                     SIGNATURE MUST BE GUARANTEED
                     BY A COMMERCIAL BANK OR FIRM
                     WHICH IS A MEMBER OF A REGISTERED
                     NATIONAL STOCK EXCHANGE

</TABLE>DATED  30 June                                     1999

(1)  RANK HOLIDAYS DIVISION LIMITED

(2)  GRAND HOTEL GROUP LIMITED

ASSET SALE AGREEMENT

RELATING TO BUTLINS PROVINCIAL HOTELS

REFERENCE

PMT/98-14145

                                     [LOGO]
                                 RICHARDS BUTLER
                             INTERNATIONAL LAW FIRM

               Beaufort House 15 St Botolph Street London EC3A 7EE
   telephone 0171 247 6555 facsimile 0171 247 5091 email law@richardsbutler.com

<PAGE>

CONTENTS

CLAUSE

 1 INTERPRETATION ........................................................    1
 2 SALE AND PURCHASE OF THE ASSETS .......................................    9
 3 CONSIDERATION .........................................................   11
 4 APPORTIONMENTS AND CONTRACTS ..........................................   12
 5 STOCK, CASH FLOATS, PREPAYMENTS AND TARIFF CREDITORS ..................   17
 6 COMPLETION ............................................................   20
 7 WARRANTIES ............................................................   22
 8 BADGED ITEMS AND EXCLUDED ASSETS ......................................   23
 9 EMPLOYEES .............................................................   23
10 PENSIONS ..............................................................   26
11 VALUE ADDED TAX .......................................................   26
12 LICENCES ..............................................................   29
13 BOOKINGS ..............................................................   29
14 EXCLUSION OF WARRANTIES AND REPRESENTATIONS ...........................   31
IS NOTICES ...............................................................   32
16 GENERAL ...............................................................   32

SCHEDULE

SCHEDULE I ...............................................................   36
   THE PROPERTIES ........................................................   36
SCHEDULE 2 ...............................................................   46
  TERMS AND CONDITIONS OF SALE OF THE PROPERTIES .........................   46
SCHEDULE 3 ...............................................................   51
   PRICE .................................................................   51
SCHEDULE 4 ...............................................................   52
   EMPLOYEES .............................................................   52
SCHEDULE 5 ...............................................................   61
   THE CONCESSION AGREEMENTS .............................................   61
SCHEDULE 6 ...............................................................   63
   THE WARRANTIES ........................................................   63
SCHEDULE 7 ...............................................................   72
   PROVISIONS CONCERNING THE WARRANTIES ..................................   72
SCHEDULE 8 ...............................................................   78
   MOTOR VEHICLE .........................................................   78
SCHEDULE 9 ...............................................................   79
   PENSIONS ..............................................................   79

                                    CONTENTS

<PAGE>

AGREED FORM DOCUMENTS

Actuary's Letter

Assurances

Butlins Licence

Butlins Services Agreement

Grosvenor Fire Alarm Agreement

Loan Note

LSA Agreement

Standby Letter of Credit

                                            CONTENTS

<PAGE>

AGREEMENT dated   30 June                   1999

BETWEEN:

(I)  RANK HOLIDAYS DIVISION LIMITED, a company registered in England under
     number 712215 whose registered office is at 6 Connaught Place, London W2
     2EZ (`the Vendor')

(2)  GRAND HOTEL GROUP LIMITED, a company registered in England under number
     3657769 whose registered office is at Level 1, Exchange House, Primrose
     Street, London EC2A 2EH (`THE PURCHASER')

RECITALS

(A) Pursuant to an asset sale agreement of 15 June 1999, the Vendor purchased
the Business including the Assets from Butlins Limited on 15 June 1999.

(B) The Purchaser wishes to purchase from the Vendor and the Vendor wishes to
sell to the Purchaser the Assets on the terms and conditions set out in this
Agreement.

I    INTERPRETATION

1.1  In this Agreement, unless the context otherwise requires -

     `THE ACCOUNTS' means Butlins audited accounts for the financial year ended
     on 31 December 1998 (including the notes), together with the reports and
     other documents required by law to be annexed or attached to them;

     `ARTICLES OF ASSOCIATION' means the new articles of association of the
     Purchaser adopted on or around (but not later than) the date hereof in
     substitution for the previous articles of association of the Purchaser;

     `THE ASSETS' means the assets of the Business agreed to be sold and all
     other rights referred to in clause 2.2 agreed to be transferred to the
     Purchaser under this Agreement;

                                     PAGE 1

<PAGE>

     `BADGED ITEMS' means all plant, machinery, tools, equipment, uniforms,
     clothing, stock, confectionery, merchandise and other items (including
     without limitation, all corporate, directional and informational signs,
     advertising and publicity materials, stationery and invoices) at the
     Properties on Completion (i) badged with or bearing any name of or any
     name, logo or symbol owned or used by a Rank Group Company including
     without limitation the names `Butlins', `Butlins Hotels', `Entertainment
     Hotels', `Everydays', `Hard Rock', `Butlins Holiday Worlds',' `Rank', `Red
     Coats' and the `man with the gong' symbol or logo (`A RANK BADGE') and/or
     (ii) recognisably in the house style or colouring of any Rank Group Company
     (including but without limitation the `Red Coats' uniforms);

     `THE BOOK DEBTS' means all debts owing to any Member of the Vendor's Group
     in connection with the Business on the Completion Date (excluding for the
     avoidance of doubt cash receivable at Completion in respect of holidays or
     breaks to be taken at the Properties after Completion, such cash receivable
     to be treated under clause 4);

     `THE BUSINESS' means the business of owning and operating hotels at each of
     the Properties as carried on up to the date of this Agreement by Butlins
     and (following the purchase from Butlins) the Vendor under the Business
     Names and which is part of the activities carried on by Butlins and
     (following the purchase from Butlins) the Vendor and `BUSINESS' in relation
     to any of the Properties means such business as carried on at such Property
     under the Business Name used at that Property;

     `BUSINESS DAY' means a day, except Saturday and Sunday, on which banks in
     the City of London are generally open for business;

     `THE BUSINESS NAMES' means the names used in respect of the Business as set
     out in paragraph 2 of each part of Schedule 1;

     `BUTLINS' means Butlins Limited, a company registered in England under
     number 323698 whose registered office is at 6 Connaught Place, London W2
     2EZ;

                                     PAGE 2

<PAGE>

     `THE BUTLINS LICENCE' means the licence to use the Trade Marks in the
     agreed form to be entered into on Completion between Rank Leisure Holdings
     plc and the Purchaser;

     `THE BUTLINS SALE AGREEMENT' means the agreed dated 15 June 1999 pursuant
     to which Butlins sold to the Vendor the Business and Assets which are sold
     to the Purchaser pursuant to this Agreement;

     `THE BUTLINS SERVICES AGREEMENT' means the agreement for services in the
     agreed form to be entered into on Completion between the Vendor and the
     Purchaser;

     `THE CASH FLOATS' means all cash floats at the Properties (including all
     cash in gaming, amusement, vending, video, change and other machines) on
     Completion ascertained in accordance with clause 5;

     `CHAPTER I PART XIV' means Chapter 1 Part XIV of the Income and Corporation
     Taxes Act 1988 (as amended);

     `CONSIDERATION SHARES' means the 100 Rank Shares;

     `COMPLETION' means completion of the sale and purchase of the Business and
     Assets under this Agreement in accordance with the provisions of clause 6;

     `THE COMPANIES ACT' means the Companies Act 1985;

     `THE COMPLETION DATE' means the date on which Completion takes place;

     `THE CONCESSION AGREEMENTS' means those concession agreements listed in
     Schedule 5 together with those other agreements entered into with third
     parties for the purpose of enabling the provision of services by third
     parties to customers and guests at the Properties as disclosed in the
     Vendor's replies to the Purchaser's pre-contract enquiries and in
     correspondence relating to the Properties which are outstanding on the
     Completion Date;

                                     PAGE 3

<PAGE>

     `THE CONTRACTS' means the contracts and commitments entered into by a
     Member of the Vendor's Group in the ordinary course of the Business and
     which are outstanding on the Completion Date (other than the contracts and
     commitments excluded pursuant to clause 2.3(f), all computer software
     licences and agreements and agreements relating to data and voice lines),
     all bookings for holidays or breaks to be taken at the Properties after
     Completion, the Concession Agreements and all bookings of acts to perform
     at the Properties after Completion made by Leisure Services Agency Limited
     prior to Completion;

     `THE CREDITORS' means all amounts owing by any Member of the Vendor's Group
     in relation to the Business outstanding on the Completion Date;

     `THE CUSTOMER LIST' means the list comprising, to the extent the same are
     in the possession of the Vendor and/or Butlins at Completion, the names and
     addresses of those persons who have booked a holiday or break taken at any
     time during the two year period up to Completion at any of the Properties
     and/or who have booked prior to Completion a holiday or break to be taken
     at any of the Properties after Completion;

     `THE DISCLOSURE LETTER' means the disclosure letter of the same date as
     this Agreement addressed by the Vendor to the Purchaser for the purpose of
     Schedule 7;

     `THE EMPLOYEES' means the persons other than Rhett Vallally, Christopher
     Jeffries and Beryl Fields who, immediately before Completion, are employed
     under contracts of employment with any Member of the Vendor's Group and
     exclusively engaged in the Business and details of the persons who at 1
     June 1999 were employed under permanent contracts of employment in the
     Business are set out in Schedule 4;

     `THE ERA' means the Employment Rights Act 1996;

     `THE GOODWILL' means the goodwill of the Business, together with -

                                     PAGE 4

<PAGE>

     o    the right to represent the Purchaser as carrying on the Business in
          succession to Butlins and the Vendor;

     o    the benefit (so far as the Vendor can lawfully assign it), subject to
          the burden, of the Contracts; and

     o    the Business Names (so far as the Vendor has any right to use or
          interest in the same and is lawfully able to transfer any right to use
          or interest in the same);

     `GROUP' means, in relation to any company, that company and every other
     company which at the relevant time is its subsidiary or holding company, or
     a subsidiary of any such holding company; and `MEMBER' of a Group has a
     corresponding meaning;

     `THE GROSVENOR FIRE ALARM AGREEMENT' means the agreement between Grosvenor
     Casinos Limited and the Purchaser in the agreed form relating to the fire
     alarm at the Property at Scarborough;

     `LANDLORD' means in relation to a Leasehold Property the landlord/lessor in
     relation to the Lease(s) relating to that Leasehold Property or part of it
     and includes any landlord/lessor in relation to any lease superior thereto
     (and `LANDLORDS' shall be construed accordingly);

     `THE LEASEHOLD PROPERTIES' means those of the Properties which are, in
     whole or part, leasehold and `LEASEHOLD PROPERTY' shall be construed
     accordingly;

     `THE LEASE' means the lease(s) referred to in paragraph I of the relevant
     Part of Schedule 1 and `LEASES' shall be construed accordingly;

     `THE LICENCES' means all justices' licences, public entertainment licences,
     bingo licences, gaming machine licences, registrations under the Gaming Act
     1968, gaming machine permits granted under section 34 of the Gaming Act
     1968, hotel comprehensive television licences, radio licences and all other
     licences, permits and registrations in force immediately prior to
     Completion in relation to the Business;

                                     PAGE 5

<PAGE>

     `THE LOAN NOTE' means the (pound)10,400,000 non-interest bearing loan note
     to be issued to Butlins by the Purchaser in the agreed form;

     `THE LSA AGREEMENT' means the agreement in the agreed form to be entered
     into by Leisure Services Agency Limited and the Purchaser on Completion;

     `THE MANAGEMENT ACCOUNTS' means the trading accounts of the Business for
     the 12 month period ended 31 December 1998 annexed to the Disclosure Letter
     as document H31;

     `THE MOTOR VEHICLE' means the motor vehicle details of which are given in
     Schedule 8;

     `THE PLANT' means all fixed and loose plant, machinery, tools, furniture
     and equipment owned by the Vendor for the purpose of the Business and
     situated at the Properties on Completion;

     `THE PREPAYMENTS' means all payments made by any Member of the Vendor's
     Group prior to Completion in respect of the supply to the Business of any
     goods or services to be provided to the Business after Completion;

     `THE PROPERTIES' means the freehold and leasehold properties brief
     particulars of which are given in paragraph 1 of each Part of Schedule 1,
     but excluding any fixed plant, machinery or equipment on them, and
     `PROPERTY' shall be construed accordingly;

     `RANK GROUP COMPANY' means The Rank Group Plc, a company registered in
     England under number 3140769, and every other company which at the relevant
     time is its subsidiary or holding company, or a subsidiary of any such
     holding company,

     `RANK PLAN' means the retirement benefits scheme known as `The Rank Pension
     Plan' constituted by a Definitive Trust Deed and Rules dated 8th April 1963
     (as amended);

                                     PAGE 6

<PAGE>

     `RANK SCHEME' means the retirement benefits scheme known as `The Rank Money
     Purchase Pension Scheme' constituted by a Definitive Trust Deed and Rules
     dated 2nd April 1991 (as amended);

     `RANK SHARES' means the shares of (pound)1 each in the capital of the
     Purchaser having the rights and being subject to the restrictions set out
     in the Articles of Association;

     `THE RECORDS' means payroll details relating to the Employees, such
     documents of title relating to the Assets as are in the possession and
     control of the Vendor's Group at Completion and details of all bookings
     made with Butlins prior to Completion for holidays at the Properties
     commencing after Completion in whatever form or medium held or recorded;

     `THE STANDBY LETTER OF CREDIT' means the standby letter of credit in the
     agreed form to be issued by CitibankN.A. to Butlins on Completion in
     respect of the Loan Note;

     `THE STOCK' means all wet and dry stocks of any kind (including, without
     limitation, all stocks of food, liquor, beverages, tobacco, shop
     merchandise but excluding Badged Items) at the Properties and used or
     intended for use in the Business and ascertained in accordance with clause
     5;

     `THE TARIFF CREDITORS' means all amounts received by Butlins and/or any
     other Member of the Vendor's Group and/or the Vendor prior to Completion in
     respect of bookings of holidays and breaks to be taken at the Properties
     after Completion such amounts to be treated in accordance with clause 5
     less any VAT for which Butlins or any Member of its Group is properly
     accountable to HM Customs and Excise in respect of such holidays and less
     any agents' commission deductible from any such amounts;

     `THE TRADE MARKS' means the `Butlins' and `Entertainment Hotels' trade
     marks licensed under the Butlins Licence;

                                     PAGE 7

<PAGE>

     `THE TRANSFER REGULATIONS' means the Transfer of Undertakings (Protection
     of Employment) Regulations 1981;

     `VAT' means value added tax;

     `THE VENDOR'S SOLICITORS' means Richards Butler of Beaufort House, 15 St
     Botolph Street, London EC3A 7EE, Ref: PMT (and who are also Butlins
     Solicitors); and

     `THE WARRANTIES' means the warranties contained in Schedule 6.

1.1  In this Agreement, unless the context otherwise requires -

     (a)  an expression which is defined in or to which a meaning is given for
          the purpose of the Companies Act (excluding its Schedules) has the
          same meaning unless it is otherwise defined in this Agreement;

     (b)  a reference to a statute or a provision of a statute is a reference to
          that statute or provision as amended or modified on the date of this
          Agreement;

     (c)  a reference to a document `IN THE AGREED FORM' is a reference to a
          document in the form of the draft which, for identification, is
          endorsed with a statement (signed by or on behalf of the parties) to
          the effect that it is such a document for the purpose of this
          Agreement;

     (d)  a reference to `WRITING', or any cognate expression, includes a
          reference to any communication effected by telex, facsimile
          transmission or similar means; and

     (e)  a reference to a clause or a Schedule is a reference to a clause of or
          a Schedule to this Agreement and a reference to this Agreement
          includes a reference to each Schedule; and

     (f)  a reference to `the Parties' is a reference to the parties hereto.

                                     PAGE 8

<PAGE>

1.2  The headings in this Agreement are for convenience only and shall not
     affect its interpretation.

2    SALE AND PURCHASE OF THE ASSETS

2.1  Subject to the terms of this Agreement the Vendor shall transfer the
     Business as a going concern including the Assets or procure the transfer of
     the same to the Purchaser with effect on and from Completion.

2.2  The Vendor shall sell, or procure the sale of, and the Purchaser shall
     purchase the following assets of the Business -

     (a)  the Goodwill provided always that (save as expressly provided in the
          Butlins Licence) nothing contained herein or otherwise shall give the
          Purchaser any rights whatsoever in or to use any of the names
          `Butlins', `Butlins Hotels', `Butlins Holiday Worlds', `Entertainment
          Hotels', `Everydays', `Hard Rock', `Red Coats', `Rank', the `man with
          the gong' logo or symbol or any other name, logo or symbol owned or
          used by any Rank Group Company (other than the Business Names);

     (b)  the Properties;

     (c)  the Plant;

     (d)  the Tariff Creditors;

     (e)  the Customer List;

     (f)  the Records;

     (g)  the Stock;

     (h)  the Cash Floats;

                                     PAGE 9

<PAGE>

     (i)  the Prepayments; and

     (j)  the Motor Vehicle (together with the benefit of its unexpired vehicle
          excise licence).

2.3  For the avoidance of doubt there shall be excluded from the sale and
     purchase under this Agreement -

     (a)  all cash in hand or at bank of the Vendor's Group in relation to the
          Business other than the Tariff Creditors and the Cash Floats;

     (b)  other than those items referred to in clauses 2.2(e) and (f), all
          purchasing manuals, books of account, records, and all other
          information and data howsoever recorded or stored relating to the
          Business or the customers or suppliers thereof and all copies of the
          same;

     (c)  all plant, machinery, tools, equipment and other items the subject of
          any hire, hire purchase, conditional sale, financial lease, rental or
          loan agreement or arrangement included in the Contracts and/or the
          Leases;

     (d)  all Badged Items;

     (e)  the Creditors;

     (f)  the benefit of all group purchase and supply contracts, arrangements
          and commitments entered into by the Vendor's Group in the course of
          the Business (including, without limitation, agreements with National
          Express and ATOC) other than the arrangements and commitments covered
          by the Prepayments; and

     (g)  the Book Debts.

2.4  The Business as a going concern including the Assets shall be sold by the
     Vendor as beneficial owner, and the Vendor shall sell the same, or procure
     the sale of the same,

                                     PAGE 10

<PAGE>

     with full title guarantee (subject to the provisions of Schedule 2 in
     respect of the Properties) as to any property to which the Law of Property
     (Miscellaneous Provisions) Act 1994 is capable of applying unless there is
     express provision in this Agreement to the contrary in relation to any
     particular Asset.

2.5  The Properties shall be sold by the Vendor, or the Vendor shall procure the
     sale of the Properties, on the terms and conditions contained or referred
     to in Schedule 2.

2.6  Risk in and title to the Assets shall pass to the Purchaser on Completion.

2.7  Nothing in this Agreement shall transfer or be deemed to transfer to the
     Purchaser or constitute or be deemed to constitute an acceptance or
     assumption by the Purchaser of any liability, obligation, benefit, right,
     interest or asset of the Vendor or any Member of the Vendor's Group save in
     relation to the Properties or as expressly set out in this Agreement or in
     any document in the agreed form.

3    CONSIDERATION

3.1  The price for the Assets (excluding the Stock, the Cash Floats and the
     Prepayments) shall be the sum of (pound)19,000,100 (nineteen million one
     hundred pounds) (`THE CONSIDERATION') exclusive of VAT (if any) to be
     satisfied by-

     (a)  the allotment at Completion to the Vendors of the Consideration Shares
          credited as fully paid; and

     (b)  the discharge by the Purchaser of the liability of the Vendor under
          clause 3.1 of the Butlins Sale Agreement to pay the sum of
          (pound)19,000,000 (but not any VAT thereon) to be effected as
          follows -

          (i)  by the payment in cash to Butlins on Completion
               of (pound)8,600,000 (eight million six hundred thousand pounds);
               and

          (ii) by the issue on Completion to Butlins by the Purchaser of the
               Loan Note.

                                     PAGE 11

<PAGE>

3.2  The parties agree to adopt the apportionment of the price given in Schedule
     3 for all fiscal purposes. Any adjustment to the price for the Assets under
     this Agreement shall be effected pro rata the apportioned values given in
     Schedule 3.

3.3  As consideration for the Stock, Cash Floats and Prepayments, the Purchaser
     shall discharge the liability of the Vendor to make payment to Butlins
     under clause 3.3 of the Butlins Sale Agreement to be effected by the
     payment directly to Butlins of the sum calculated under clause 5.12 of this
     Agreement.

3.4  In addition to the stuns payable as consideration for the Assets the
     Purchaser agrees that it shall, pursuant to the Butlins Licence and the
     Butlins Services Agreement, pay -

     (a)  to the Vendor (as trustee for the benefit of Rank Leisure Holdings
          Plc) on Completion the sum of (pound)700,000 together with any VAT
          chargeable thereon in respect of the amounts due under the Butlins
          Licence and the sum of (pound)300,000 together with any VAT chargeable
          thereon on the date two months after the Completion Date in respect of
          further amounts due under the Butlins Licence; and

     (b)  to the Vendor on Completion the sum of (pound)200,000 together with
          any VAT chargeable thereon in respect of amounts due under the Butlins
          Services Agreement and the sum of (pound)100,000 together with any VAT
          chargeable thereon on the date two months after the Completion Date in
          respect of further amounts due under the Butlins Services Agreement.

4    APPORTIONMENTS AND CONTRACTS

4.1  Without prejudice to clause 2.7 and subject always to the terms of clause 5
     all expenses and outgoings (but excluding the Creditors) and income (but
     excluding the Book Debts) relating to the Business including any of the
     Assets shall, as they relate to a period before the Completion Date be
     borne by (in the case of expenses and outgoings) and be for the benefit of
     (in the case of income) the Vendor and insofar as they relate to a period
     after the Completion Date be borne by (in the case of expenses

                                     PAGE 12

<PAGE>

     and outgoings) and be for the benefit of (in the case of income) the
     Purchaser and accordingly insofar as they relate to a period falling partly
     before and partly after the Completion Date, be apportioned pro rata
     temporis as between the Vendor and the Purchaser who shall account to one
     another on or as soon as practicable after Completion. Subject always to
     the provisions of the Butlins Services Agreement in respect of sums dealt
     with thereunder, in the event that after Completion any Member of the
     Purchaser's Group receives any payment which under the terms of this clause
     4.1 is due to the Vendor it shall pay the same to the Vendor within 10
     Business Days of the next occurring Accounting Date (as defined below) and
     in the event that after Completion any Member of the Vendor's Group
     receives any payment which under the terms of this clause 4.1 is due to the
     Purchaser it shall pay the same to the Purchaser within 10 Business Days of
     the next occurring Accounting Date (as defined below). For the purposes of
     the above provisions, the Parties shall on the expiry of each consecutive
     period of seven days following Completion (each such date being an
     `ACCOUNTING DATE') notify the other Party in writing of any sums received
     by it due to that other Party under this clause.

4.2  As further consideration for the sale of the Business including the Assets,
     the Purchaser undertakes to the Vendor (for itself and as trustee for the
     benefit of every other Member of its Group) that, in discharge of part of
     the liability of the Vendor under clause 3.2 of the Butlins Sale Agreement,
     as from the Completion Date it shall -

     (a)  subject to clause 4.2(b), perform any outstanding obligations and
          liabilities of the Vendor or any other Member of its Group under the
          Contracts in so far as they relate to the period after the Completion
          Date in accordance with their terms, and shall not do any act or thing
          as a result of which any claim may be made against the Vendor or any
          other Member of its Group under the Contracts; and

     (b)  in so far as the Vendor or any other Member of its Group has entered
          into any Contract which relates both to the Business and to any other
          business of the Vendor or any other Member of its Group, the Purchaser
          shall as from the

                                     PAGE 13

<PAGE>

          Completion Date assume responsibility for and perform any outstanding
          obligations and liabilities in so far as they relate to the period
          after the Completion Date of the Vendor and any other Member of its
          Group under that Contract to the extent that it relates to the
          Business, and shall duly and properly perform at the Purchaser's cost
          all of the obligations arising under that Contract in relation to the
          Business in accordance with its terms, and the Purchaser shall not do
          any act or thing as a result of which any claim may be made against
          the Vendor or any other Member of its Group under any such Contract.

4.3  In so far as the benefit or burden of any of the Contracts cannot
     effectively be assigned to the Purchaser without the agreement of or
     novation with, or consent to the assignment from, the person, firm or
     company concerned (`THE NON-ASSIGNABLE CONTRACTS') and in relation to the
     contracts referred to in clause 4.2(b) (`THE JOINT CONTRACTS') -

     (a)  the Vendor and the Purchaser shall co-operate to do everything they
          reasonably can (excluding, for the avoidance of doubt, the making of
          any monetary payment) to procure that the non-assignable Contracts are
          novated or assigned accordingly and that the joint Contracts are
          novated into separate agreements respectively relating to the Business
          and the business retained by the Vendor pending which the Vendor
          shall hold the benefit of the relevant Contracts in trust for the
          Purchaser;

     (b)  unless and until any of the non-assignable Contracts are novated or
          assigned in accordance with this clause 4.3, the Purchaser shall as
          the Vendor's or the relevant Member of its Group's sub-contractor
          perform all the obligations of the Vendor or the relevant Member of
          its Group under the Contracts in question insofar as they relate to
          the Business and the Vendor will at the Purchaser's cost give all
          reasonable assistance to the Purchaser to enable the enforcement of
          rights thereunder; and

                                     PAGE 14

<PAGE>

     (c)  unless and until any of the joint Contracts are novated in accordance
          with this clause 4.3, as the Vendor's or the relevant Member of its
          Group's subcontractor perform any outstanding obligations of the
          Vendor or the relevant Member of its Group under the joint Contracts
          in so far as they relate to the Business and the Vendor will at the
          Purchaser's cost give all reasonable assistance to the Purchaser to
          enable the enforcement of rights thereunder.

4.4  Nothing in this Agreement -

     (a)  shall require the Purchaser to perform any obligations falling due for
          performance before the Completion Date by any Member of the Vendor's
          Group under the Contracts;

     (b)  shall make the Purchaser liable for any neglect or default in respect
          of any of the Contracts by any Member of the Vendor's Group prior to
          Completion; or

     (c)  shall impose any obligation on the Purchaser for or in respect of any
          breach of contract, breach of statutory duty or negligence on the part
          of any Member of the Vendor's Group in respect of any goods sold or
          services provided by any Member of the Vendor's Group prior to
          Completion.

4.5  The Purchaser shall on the Completion Date (or as soon as reasonably
     practicable after receipt of the same from the Vendor) send notice of the
     change of ownership of the Motor Vehicles to DVLA in Swansea (which the
     Vendor shall deliver to the Purchaser on or as soon as practicable after
     Completion) in the prescribed form so that as from the Completion Date the
     Vendor is no longer named as the registered keeper of the Motor Vehicles
     with DVLA.

4.6  The Vendor shall, following Completion, discharge in accordance with its
     ordinary custom and practice the Creditors and all other liabilities of the
     Business not expressly agreed to be assumed by the Purchaser under this
     Agreement. The Vendor shall, following Completion, collect in accordance
     with its ordinary custom and practice the

                                     PAGE 15

<PAGE>

     Book Debts provided that before taking any legal steps in respect of the
     collection thereof the Vendor shall notify the Purchaser.

4.7  The Purchaser undertakes to the Vendor (for itself and as trustee for the
     benefit of every other Member of its Group) that it shall indemnify, and
     keep indemnified, the Vendor and every other Member of its Group in respect
     of any losses, damages, costs, claims and expenses which may be reasonably
     incurred by the Vendor or any other Member of its Group as a result of -

     (a)  any act, neglect, default or omission on the part of the Purchaser's
          Group constituting a failure to comply with any obligation of the
          Purchaser's Group under the Contracts arising on or after Completion;
          and

     (b)  any claim for payment by any of the creditors of the Purchaser's Group
          in relation to the carrying on of the Business after the Completion
          Date and arising from or in connection with the neglect or default of
          any Member of the Purchaser's Group.

4.8  Nothing in this Agreement -

     (a)  shall require any Member of the Vendor's Group to perform any
          obligations falling due for performance after the Completion Date by
          any Member of the Purchaser's Group under the Contracts;

     (b)  shall make any Member of the Vendor's Group liable for any neglect or
          default in respect of any of the Contracts by any Member of the
          Purchaser's Group after Completion; or

     (c)  shall impose any obligation on any Member of the Vendor's Group for or
          in respect of any breach of contract, breach of statutory duty or
          negligence on the part of any Member of the Purchaser's Group in
          respect of any goods sold or services provided by any Member of the
          Purchaser's Group after Completion.

                                     PAGE 16

<PAGE>

5    STOCK, CASH FLOATS, PREPAYMENTS AND TARIFF CREDITORS

5.1  Under the provisions of the Butlins Sale Agreement, for the purposes of
     determining the payment to be made to Butlins under clause 3.3 of the
     Butlins Sale Agreement the amount of the Tariff Creditors is to be deducted
     from the amount payable for the Stock, the Cash Floats and Prepayments. The
     Parties agree that the following provisions shall be applied to determine
     the sum payable by the Purchaser in discharge of the liability of the
     Vendor under clause 3.3 of the Butlins Sale Agreement. The Vendor and the
     Purchaser shall procure that the aggregate value of the Stock, the Cash
     Floats and the Prepayments less the Tariff Creditors is calculated in
     accordance with the following provisions of this clause 5.

5.2  `The quantities and descriptions of the Stock, the cost and net realisable
     value of the Stock and the amount of the Cash Floats shall be determined
     by reference to a stocktaking to be taken on the Completion Date (or such
     other date as may be agreed by the parties) by Messrs. Venners (or such
     other stocktaker as may be agreed by the parties) whose costs shall be
     borne jointly by the Vendor and the Purchaser and whose decisions shall (in
     the absence of manifest error) be final and binding on the parties.

5.3  The value of the Stock shall be ascertained by the stocktaker and each item
     of Stock shall be valued at the lower of cost and net realisable value (or
     cost in the case of items not for resale). For the purpose of computing the
     cost to the Vendor of any Stock, any Stock acquired by the Vendor or
     Butlins from another Member of its Group shall be treated as having been so
     acquired at market value by way of a bargain made at arm's length.

5.4  Each of the Vendor and the Purchaser shall, and the Vendor shall procure
     that Butlins shall, give to the stocktaker such assistance as may be
     reasonably required to enable the price of the Stock and the amount of the
     Cash Floats to be calculated and each shall procure that proper access to
     the books of account and accounting records of the Business is provided to
     enable the stocktake to be carried out under this Agreement.

                                     PAGE 17

<PAGE>

5.5  The Vendor shall, or shall procure that Butlins shall, procure that a
     statement showing the value of the aggregate of the Stock, the Cash Floats
     and the Prepayments less the Tariff Creditors with each shown separately
     (`THE STATEMENT') as at the Completion Date is prepared as soon as
     practicable after Completion and in any event within 28 days of the
     Completion Date. Once prepared, such statement and any supporting
     calculations (including details of all bookings to which the Tariff
     Creditors relate) shall be delivered forthwith to the Purchaser for
     approval.

5.6  Unless the Purchaser notifies the Vendor in writing within 14 days of its
     receipt of the Statement that, in the Purchaser's opinion, the Statement is
     inaccurate, the amount of the value of the aggregate of the Stock, the Cash
     Floats and the Prepayments less the Tariff Creditors set out in such
     statement shall be conclusive and binding on the Vendor and the Purchaser;
     but if the Purchaser notifies the Vendor that in its opinion the Statement
     is inaccurate the provisions of clauses 5.8 and 5.9 shall apply.

5.7  If the Purchaser notifies the Vendor that, in its opinion, the Statement
     is inaccurate, the Vendor the Purchaser shall use their respective
     reasonable endeavours to agree the Statement and the amount of the value of
     the aggregate of the Stock, the Cash Floats and the Prepayments less the
     Tariff Creditors within 14 days of receipt by the Vendor of the
     notification under clause 5.6.

5.8  If the Statement and the amount of the value of the aggregate of the Stock,
     the Cash Floats, and the Prepayments less the Tariff Creditors are not
     agreed by the end of the period mentioned in clause 5.7, the Vendor and
     Purchaser shall as soon as practicable after the end of that period refer
     any disputed item in the preparation of the Statement or the ascertainment
     of the amount of the value of the aggregate of the Stock, the Cash Floats
     and the Prepayments less the Tariff Creditors to an independent chartered
     accountant qualified as such for not less than ten years and engaged in
     private practice to be agreed upon between them and appointed jointly by
     the Vendor and the Purchaser or (in default of such agreement) by the
     President for the time being of the Institute of Chartered Accountants in
     England and Wales on the application of the Vendor or the Purchaser, the
     accountant so appointed shall be instructed to deliver his

                                     PAGE 18

<PAGE>

     determination of such disputed item(s) as soon as practicable to the Vendor
     and the Purchaser and shall be deemed to act as an expert and not as an
     arbitrator and his decision shall be final and binding on the Vendor and
     the Purchaser.

5.9  The Vendor and the Purchaser shall, and the Vendor shall procure that
     Butlins shall, procure that proper and reasonable access to the books of
     account and accounting records of the Business is given to the Purchaser
     and any accountant appointed under clause 5.8 to enable them to verify the
     Statement and to enable them to carry out their respective duties under
     this Agreement.

5.10 The fees of any chartered accountant appointed under clause 5.8 shall be
     paid by the Vendor and the Purchaser in such proportion as he may determine
     or, in the absence of any such determination, as to one half by the Vendor
     and as to one half by the Purchaser.

5.11 Sums received by Butlins and/or any other Member of the Vendor's Group
     and/or the Vendor prior to Completion in respect of bookings of holidays
     and breaks to be taken at the Properties partly before and after Completion
     shall be apportioned on a pro rata temporis basis and the relevant amount
     thereof included in the Tariff Creditors accordingly.

5.12 Within seven days of the Statement being finally agreed or determined
     pursuant to the above provisions the Purchaser shall, in discharge of the
     obligations of the Vendor under clause 3.3 of the Butlins Sale Agreement,
     pay to Butlins the greater of (a) the aggregate of the value of the Stock,
     the Cash Floats and the Prepayments less (i) the Tariff Creditors and (ii)
     (pound)500,000; and (b) nil.

3.13 If the value of the aggregate of the Tariff Creditors plus (pound)500,000
     is greater than the aggregate of the Stock, Cash Floats and Prepayments,
     the Vendor shall within seven days of the Statement being finally agreed or
     determined pursuant to the above provisions pay to the Purchaser the amount
     by which the aggregate of the Tariff

                                     PAGE 19

<PAGE>

     Creditors plus (pound)500,000 is greater than the aggregate of the Stock,
     the Cash Floats and the Prepayments

6    COMPLETION

6.1  The sale and purchase of the Assets shall be completed immediately upon the
     execution and exchange of this Agreement.

6.2  The Vendor shall on Completion -

     (a)  deliver to the Purchaser such of the Assets as are capable of passing
          by delivery by making the same available at the relevant Property;

     (b)  to the extent the same are in the possession of the Vendor, deliver to
          the Purchaser the originals of the Contracts and copies of the joint
          Contracts (as referred to in clause 4.3);

     (c)  deliver to the Purchaser

          (i)  an assurance of each Property in the agreed form duly executed by
               Butlins;

          (ii) the Butlins Licence duly executed by Rank Leisure Holdings plc;

          (iii) the Butlins Services Agreement duly executed by the Vendor;

          (iv) the LSA Agreement duly executed by Leisure Services Agency
               Limited;

          (v)  the Grosvenor Fire Alarm Agreement duly executed by Grosvenor
               Casinos Limited;

          (vi) certified copies of the board minutes of the Vendor approving the
               entry into and performance of this Agreement; and

                                     PAGE 20

<PAGE>

         (vii) licences to assign relating to the Leasehold Properties (where
               appropriate) in a form acceptable to the relevant Landlord and
               duly executed by the relevant Landlord (provided that the
               obligation on the Vendor in this sub-clause is limited to handing
               over such licence to assign as soon as it is received by the
               Vendor from the relevant Landlord).

6.3  The Purchaser shall on Completion

     (a)  pay to Butlins, by CHAPS transfer to the Vendor's Solicitors' (who arc
          also Butlins Solicitors) bank account at Lloyds Bank Plc, 39
          Threadneedle Street, London EC2R 8AU, (sort code 30-00-09, account
          number 0023889) the sum of (pound)8,600,000 (eight million, six
          hundred thousand pounds), being the sum specified in clauses
          3.1(b)(i);

     (b)  pay to the Vendor, by CHAPS transfer to the Vendor's Solicitors'
          bank account at Lloyds Bank Plc, 39 Threadneedle Street. London EC2R
          8AU, (sort code 30-00-09, account number 0023889) the sum of
          (pound)900,000 being the aggregate of the sums specified in clauses
          3.4(a) and 3.4(b) as payable at Completion;

     (c)  deliver a duly executed original of the Loan Note to Butlins (or to
          the Vendor's Solicitors on Butlins behalf), together with certified
          copies of the board minutes of the Purchaser constituting the Loan
          Note and authorising its issue to Butlins and the original Standby
          Letter of Credit duly issued and executed by Citibank N.A.;

     (d)  deliver to the Vendor -

          (i)  an assurance of each Property in the agreed form duly executed by
               the Purchaser;

          (ii) the Butlins Licence duly executed by the Purchaser;

                                     PAGE 21

<PAGE>

          (iii) the Butlins Services Agreement duly executed by the Purchaser;

          (iv) the LSA Agreement duly executed by the Purchaser;

          (v)  the Grosvenor Fire Alarm Agreement duly executed by the
               Purchaser;

          (vi) certified copies of the board minutes of the Purchaser approving
               the entry into and execution of the above and

          (vii) licences to assign and rent deposit deeds relating to the
                Leasehold Properties (where appropriate) in a form acceptable to
                the relevant Landlord duly executed by the Purchaser.

6.4  The Vendor's Solicitors are irrevocably authorised to receive the payments
     referred to in clauses 6.3(a) and 6.3(b) and their receipt thereof shall be
     a sufficient discharge to the Purchaser who shall not be concerned with the
     distribution thereof.

6.5  The Vendor shall from time to nine and at all times after the Completion
     Date upon request by the Purchaser (and at the Purchaser's cost and
     expense) do all such acts and execute all such documents as arc reasonably
     necessary for perfecting the transfer of the Business to the Purchaser and
     for vesting in the Purchaser title to the Assets in accordance with this
     Agreement.

6.6  This Agreement shall, so far as it remains to be performed, continue in
     full force and effect notwithstanding Completion.

7    WARRANTIES

7.1  The Vendor warrants to the Purchaser in the terms contained in Schedule 6,
     subject to the provisions of Schedule 7, the terms of which the Purchaser
     acknowledges and agrees are fair and reasonable in all the circumstances
     and in particular, but without limitation, for the purposes of the
     Misrepresentation Act 1967 and the Unfair Contract Terms Act 1977.

                                     PAGE 22

<PAGE>

7.2  Each of the Warranties shall be construed as a separate Warranty and shall
     not be limited or restricted by reference to or inference from any other
     matter including the terms of any other Warranty or any other terms of this
     Agreement with the exception of Schedule 7.

7.3  In the absence of fraud or fraudulent concealment, the Vendor shall not (in
     the event of any claim being made against it in connection with the sale of
     the Business and Assets to the Purchaser) make any claim against any of the
     Employees on whom it may have relied before agreeing to any term of this
     Agreement or the content of any of the Warranties or authorising any
     statement in the Disclosure Letter.

7.4  Save as provided in this Agreement no failure or delay by any Party in
     exercising any of its rights hereunder shall be deemed to be a waiver of
     that right. Any waiver or release of any right hereunder shall be in
     writing and such a waiver or release shall not prejudice or affect any
     remaining rights or remedies of the relevant Party giving the waiver or
     release.

8    BADGED ITEMS AND EXCLUDED ASSETS

     On the expiry of the Butlins Licence, the Purchaser shall remove and
     dispose at its own cost (and in a manner which is not prejudicial or
     detrimental to the goodwill of any Rank Group Company) all items badged
     with or bearing a Trade Mark (other than those which it has been expressly
     agreed by the parties in writing should remain at the Properties and in
     relation to such Badged Items the Purchaser shall on expiry of the Butlins
     Licence permanently block out, at the cost of the Purchaser, any Rank Badge
     thereon).

9    EMPLOYEES

9.1  It is acknowledged and agreed by the Parties that the transfer of the
     Business pursuant to this Agreement constitutes a `relevant transfer' for
     the purposes of the Transfer Regulations and that accordingly the contracts
     of employment of the Employees will

                                     PAGE 23

<PAGE>

     on Completion be transferred to the Purchaser as provided by the Transfer
     Regulations.

9.2  The Vendor shall pay to each of the Employees all emoluments (excluding any
     accrued holiday pay and bonuses but including other benefits) due to them
     for the period ending on the Completion Date.

9.3  The Purchaser warrants and represents that it has prior to the execution of
     this Agreement given to the Vendor in writing such information concerning
     the measures envisaged by the Purchaser concerning the Employees as would
     enable the Vendor to comply with its statutory obligation to inform and
     consult representatives of the Employees pursuant to the Transfer
     Regulations about the transfer of the Business to the Purchaser.

9.4  The Vendor warrants and represents that it has prior to the execution of
     this Agreement complied with it obligations under the Transfer Regulations
     to inform and consult the Employees about the transfer of the Business to
     the Purchaser and that any default by the Vendor in doing so is a direct
     result of any failure by the Purchaser to comply with its obligations under
     regulation 10(3) of the Transfer Regulations.

9.5  The Vendor shall indemnify the Purchaser against all costs, expenses,
     damages, compensation, fines and other liabilities arising out of or in
     connection with-

     (a)  any claim by any Employee arising from his employment with Butlins or
          the Vendor or any other Member of the Vendor's Group or the
          termination of that employment (howsoever arising) on or prior to
          Completion;

     (b)  any claim by any employee or former employee of Butlins or the Vendor
          or any other Member of the Vendor's Group who is not one of the
          Employees arising from his employment with Butlins and/or the Vendor
          and/or any other Member of the Vendor's Group or the termination of
          that employment (howsoever arising);

                                     PAGE 24

<PAGE>

     (c)  any claim by any trade union or staff association recognised by
          Butlins or by the Vendor or any other Member of the Vendor's Group in
          respect of all or any of the Employees or arising from Butlins or the
          Vendor's or any other Member of the Vendor's Group's failure to comply
          with any legal obligation to any such trade union or staff association
          or Butlins or the Vendor's or any other Member of the Vendor's Group's
          failure to comply with any consultation provision of any collective
          agreement with any trade union or staff association;

     (d)  any claim by or on behalf of any Employee in respect of the failure to
          comply with any legal obligation on Butlins or the Vendor or any other
          Member of the Vendor's Group to supply information to and/or consult
          with a representative of that Employee; and

     (e)  any claim or fine arising out of the failure by Butlins or the Vendor
          or any other Member of the Vendor's Group to comply with their
          obligations under sections 188 or 193 of the Trade Union and Labour
          Relations (Consolidation) Act 1992;

     provided always that the indemnities contained in clauses 9.5(c) and 9.5(d)
     shall apply subject to the Purchaser having complied with its obligations
     under regulation 10(3) of the Transfer Regulations.

9.6  The Vendor shall following Completion at the Purchaser's request and
     expense provide to the Purchaser in relation to any Employee such
     information or documents which are not delivered to the Purchaser at
     Completion as the Purchaser may reasonably require relating to the terms
     and conditions of employment and pension and life assurance arrangements
     concerning the employment of such Employee with Butlins or the Vendor prior
     to the Completion Date.

9.7  The Purchaser shall from Completion assume responsibility for the
     performance of all of the obligations of the employer of the Employees and
     undertakes to indemnify the

                                     PAGE 25

<PAGE>

     Vendor (for itself and as trustee for the benefit of Butlins) against all
     costs, expenses, damages, compensation, fines and other liabilities arising
     out of or in connection with the employment of the Employees on or after
     Completion.

10   PENSIONS

     The Vendor and the Purchaser undertake to perform their respective
     obligations under Schedule 9 with regard to the pension rights of the
     Employees.

11   VALUE ADDED TAX

11.1 Any sum payable by the Purchaser under this Agreement is exclusive of any
     applicable VAT and (subject to this clause 11) the Purchaser agrees to pay
     all VAT which is properly chargeable thereon.

11.2 The Parties acknowledge and agree that section 49(1) of the Value Added Tax
     Act 1995 (`VATA') and paragraph 5 of the Value Added Tax (Special
     Provisions) Order 1995 (`Article 5') are intended to apply to the sale and
     purchase of the Assets and accordingly the Purchaser -

     (a)  warrants that from Completion it shall use the Assets to carry on the
          same kind of business as the Business without a significant break in
          trading;

     (b)  warrants and represents it is duly registered for VAT or shall be so
          registered with effect from a date no later than Completion;

     (c)  warrants that it shall not immediately transfer the Business or any
          part thereof or any of the Assets to another person; and

     (d)  warrants and represents that it has made an election having effect
          under paragraph 2 of schedule 10 VATA and given notice of that
          election to HM Customs & Excise in respect of the Properties such
          election to have effect on Completion.

                                     PAGE 26

<PAGE>

11.3 Under a general dispensation dated 23rd January 1992 Rank Group Companies
     received permission to retain the records (if any) referred to in section
     49(1) VATA as relate to the Business. After Completion the Vendor shall
     procure that all such records are preserved for such period as is required
     by law and shall give the Purchaser reasonable access upon reasonable
     notice to those records and shall allow the Purchaser and its agents, at
     the Purchaser's expense and upon reasonable notice, to make copies of those
     records.

11.4 If notwithstanding the intention of the parties expressed in clause 11.2 an
     amount of Value Added Tax is determined (on the basis of full disclosure of
     all material facts) by H.M. Customs and Excise to be payable in respect of
     the sale to the Purchaser of the Assets and H.M. Customs and Excise make an
     assessment in respect of that Value Added Tax, then the Purchaser shall,
     upon the date following five Business Days after the date of receipt by the
     Purchaser in cleared funds from H.M. Customs & Excise of an input tax
     credit or a refund in respect of such VAT and provided that it shall have
     received in respect of the same a valid tax invoice, pay over to the Vendor
     the amount of that Value Added Tax.

11.5 The Purchaser shall use all reasonable endeavours to obtain, as soon as
     reasonably practicable, such input tax credit or refund as is referred to
     in clause 11.4 above.

11.6 The Purchaser shall indemnify the Vendor against any liability of the
     Vendor for interest and penalties to the extent that such liability would
     not have arisen but for a breach by the Purchaser of -

     (a)  any of its warranties and representations in clause 11.2; or

     (b)  its obligations under clause 11.5 above.

11.7 The Vendor warrants that it is validly registered for VAT and that it has
     validly elected to waive the exemption from VAT in respect of the
     Properties with effect from a date falling on or before Completion by
     reason of the election made by Butlins Limited a company in the same VAT
     group as the Vendor and shall provide to the Purchaser

                                     PAGE 27

<PAGE>

     prior to Completion a copy of valid notices to HM Customs & Excise in
     respect of such election by Butlins.

11.8 The Vendor and the Purchaser shall use all reasonable endeavours to procure
     that the sale of the Assets pursuant to this Agreement is accepted as a
     transfer of a going concern by HM Customs & Excise for the purposes of
     Article 5 and the Vendor shall -

     (a)  if HM Customs & Excise determine that Article 5 does not apply to the
          sale of the Assets pursuant to this Agreement, provide to the
          Purchaser as soon as reasonably practicable full details of such
          determination;

     (b)  if so requested by the Purchaser and at the Purchaser's sole expense,
          make such appeals and request for review of decisions as the Purchaser
          shall reasonably require from time to time, providing all such
          co-operation, information and assistance as is reasonably necessary to
          pursue such appeals and reviews;

     (c)  permit, for the purposes of the appeals and requests for review
          referred to in 11.8(b) above, the Purchaser to have control of the
          conduct of such appeals and requests and to instruct on the Vendor's
          behalf such reasonably competent professional advisers as the
          Purchaser shall select; and

     (d)  promptly repay to the Purchaser any amount of VAT paid to the Vendor
          which is determined by HM Customs & Excise or a court or tribunal not
          to have been VAT properly due and payable.

11.9 The Vendor shall not be required to make any appeal in respect of the
     application of Article 5 to the sale of the Assets under this Agreement
     beyond the VAT and Duties Tribunal (or equivalent body replacing the same)
     unless the Purchaser has, at its own expense, procured the opinion of Tax
     Counsel of not less than six years call to the effect that such an appeal
     will be likely to succeed.

                                     PAGE 28

<PAGE>

11.10 The Vendor agrees to provide within 4 weeks of written request by the
      Purchaser such details as are in its possession (including the total input
      tax on the capital item the date it was incurred and the percentage of
      input tax claimed on the item in the first interval both as defined in
      Part XV of the Value Added Tax Regulations 1995 SI 1995/2518 (`the VAT
      Regulations')) of all land and other capital items which are used in the
      course or furtherance of the Business to which Part XV of the VAT
      Regulations could apply.

12    LICENCES

     The Purchaser shall use all reasonable endeavours (which endeavours shall
     include, without limitation, the payment of any renewal, transfer,
     registration or other similar fee in relation to the Licences) to procure
     that any of the Licences which are in the name of a Rank Group Company or
     any person employed by any such company (other than an Employee) and which
     are assignable or transferable to the Purchaser or its employees are, with
     effect from the Completion Date, assigned or transferred into the name of
     the Purchaser or its employees. The Vendor shall provide such assistance as
     is reasonably requested by the Purchaser for the purpose of effecting such
     assignments and transfers. The Purchaser acknowledges and agrees that in
     respect of any such Licences which are not capable of assignment or
     transfer to it or its employees, the Vendor shall following notice to the
     Purchaser identifying the Licences in question have the right to terminate
     or cancel or procure the termination or cancellation of the same with
     effect from Completion or any time thereafter.

13    BOOKINGS

13.1  The Vendor undertakes that in the event of Butlins staff receiving an
      enquiry from a customer in respect of a booking to be made at any of the
      Properties for a holiday commencing after Completion Butlins staff should
      recite, or other arrangements should be in place so far as is reasonably
      practicable, such that the customer hears, a form of message to be agreed
      between the Parties following Completion concerning the sale of the
      Business and the Vendor shall otherwise have the right to inform customers
      that the Business has been sold to the Purchaser by means of a letter to

                                     PAGE 29

<PAGE>

      customers in a form to be agreed between the parties following Completion
      and if so requested by customers of the Business Butlins, Butlins shall
      have the right to make and accept (without any liability to the Purchaser)
      a hooking at any other site or property operated by a Rank Group Company.

13.2  The Purchaser acknowledges that holiday brochures and other marketing
      materials advertising holidays at the Properties for the period after
      Completion are in circulation at the date hereof and that bookings have
      and will be made by reference to the said brochures and materials.
      Accordingly, the Purchaser undertakes to the Vendor (for itself and as
      trustee for the benefit of every other Member of its Group) that it
      shall -

      (a)   ensure that the Business is operated in all material respects during
            the periods covered by such brochures and materials to the same
            standard advertised in the said brochures and materials and shall
            ensure that the facilities, accommodation and services specified in
            the said brochures and materials are in all material respects
            provided at the Properties throughout such periods;

      (b)   adopt and honour the conditions of booking specified in the said
            brochures and materials and any other relevant contract (save as to
            price); and

      (c)   ensure that following Completion the travel offers set out in the
            1999 Entertainment Hotels brochure currently in circulation continue
            to be made available to customers of the Business in accordance with
            the terms of such brochure throughout the life of such brochure and
            the Purchaser agrees to purchase from the Vendor upon the expiry of
            3 months from Completion any National Express vouchers held by
            Butlins and/or the Vendor for coach travel to and from the
            Properties.

13.3  The Purchaser undertakes to the Vendor (for itself and as trustee for the
      benefit of every other Member of its Group) that it shall indemnify and
      keep indemnified the Vendor and each Rank Group Company in respect of all
      loss, damage, costs, claims or expenses reasonably incurred by the Vendor
      or any other Rank Group Company

                                     PAGE 30

<PAGE>

      arising out of or in connection with any claim made by a party in respect
      of a holiday taken or to be taken at any Property at any time after
      Completion which claim arises out of or in connection with any failure by
      any Member of the Purchaser's Group to ensure that the Business is
      operated during the periods covered by the brochures and materials
      referred to in clause 13.2(a) to the same standard advertised in those
      brochures and materials and/or to ensure that the facilities,
      accommodation and services (including without limitation the rail and
      coach travel offers) specified in the said brochures and materials are
      provided at the Properties throughout such periods and/or to adopt and
      honour the conditions of booking specified in the said brochures and
      materials and any other relevant contract.

14    EXCLUSION OF WARRANTIES AND REPRESENTATIONS

14.1  The Purchaser acknowledges that it has been afforded the opportunity to
      inspect the Assets and the Properties prior to the date of this Agreement
      and agrees that it shall take the same in the condition as they are at
      Completion.

14.2  The Purchaser acknowledges that it has not been induced to enter into this
      Agreement by any representation, term, condition, warranty, promise or
      assurance other than those expressly set out or referred to herein or in a
      document in the agreed form or by any collateral contract and all
      representations, terms, conditions, warranties, promises, assurances and
      duties not expressly set out or referred to herein or in a document in the
      agreed form and whether implied by statue, common law or otherwise are
      excluded to the fullest extent permitted by law and, in the absence of
      fraud, the purchaser acknowledges that it shall have no remedy in respect
      of the same.

14.3  The Purchaser acknowledges and agrees that the provisions of this clause
      14 are fair and reasonable in all the circumstances and in particular, but
      without limitation, for the purposes of the Misrepresentation Act 1967 and
      the Unfair Contract Terms Act 1977.

                                     PAGE 31

<PAGE>

15    NOTICES

15.1  Any notice or other communication to be given under this Agreement to
      either part may be given by delivering it by hand or sending it by prepaid
      first class post or by facsimile transmission to, in the case of the
      Vendor, its registered office for the time being marked for the attention
      of `The Company Secretary and, in the case of the Purchaser, its
      registered office for the time being or to such other address as a party
      may have notified to the other party in writing from time to time.

15.2  A notice or other communication given in the manner prescribed above shall
      be deemed to be given -

      (a)   at the time of delivery if it is delivered before 5.00 p.m. on a
            Business Day; and

      (b)   in any other case at 9.00 a.m. on the next following Business Day.

16    GENERAL

16.1  The Purchaser shall throughout the period of 6 years from the Completion
      Date -

      (a)   allow the Vendor or its duly authorised agent (on reasonable notice
            and at the Vendor's cost) to inspect and take copies of or extracts
            from any books of account, records and other documents (as defined
            in section 10 of the Civil Evidence Act 1968) relating to the
            Business which are delivered to the Purchaser on Completion and
            shall not destroy any part thereof without first offering the same
            to the Vendor; and

      (b)   use its reasonable endeavours at the Vendor's cost to assist the
            Vendor in obtaining any necessary information reasonably required
            for settling any outstanding tax computations or other tax, VAT,
            PAYE or National Insurance or other matter or enquiry of the
            Vendor.

16.2  Except to the extent required by the rules or regulations of the London
      Stock Exchange or by law, no announcement of the sale and purchase
      hereunder or the

                                     PAGE 32

<PAGE>

      terms of this Agreement shall be made by either party without the prior
      written consent of the other and pending any announcement each party shall
      use its best endeavours to keep the same confidential.

16.3  The Purchaser undertakes to the Vendor (for itself and as trustee for the
      benefit of every other Member of the Vendor's Group) that, except as
      provided below in this clause 16.3, it shall and shall procure that its
      employees, agents and advisors shall at all times-

      (a)   keep confidential all Restricted Information;

      (b)   not disclose any Restricted Information to any other person; and

      (c)   not use any Restricted Information for any purpose other than is
            contemplated by this Agreement (including the operation of the
            Business in the normal course);

      provided that the Purchaser may disclose any Restricted Information (i) to
      the extent required by law, (ii) to the extent that, through no fault of
      the Purchaser, the Restricted Information is at the time of such
      disclosure public knowledge or (iii) to those of its own employees and
      professional advisors who in the course of their employment or in their
      capacity as professional advisor (as the case may be) need to know such
      information.

      For the purposes of this clause, `Restricted Information' means any
      information which is disclosed to the Purchaser, its agents or its
      advisors by the Vendor, its agents or its advisors pursuant to or in
      connection with this Agreement or the sale of the Assets hereunder.

16.4  Subject as provided in this Agreement, the parties shall pay their
      respective costs in connection with this Agreement.

                                     PAGE 33

<PAGE>

16.5  This Agreement, together with the documents in the agreed form,
      constitutes to the fullest extent permitted by law the whole agreement of
      the parties in relation to its subject matter and supersedes any previous
      agreement between them in relation to that matter; and no modification of
      this Agreement shall be effective unless it is made in writing and signed
      by the parties.

16.6  If any provision of this Agreement is held by a court or other competent
      authority to be invalid or unenforceable in whole or in part, this
      Agreement shall continue to be valid as to its other provisions and the
      remainder of the affected provision.

16.7  This Agreement shall be governed by and construed in accordance with
      English law and the parties agree to submit to the non-exclusive
      jurisdiction of the English courts.

16.8  This Agreement may be executed in more than one counterpart and shall come
      into force once each party has executed such a counterpart in identical
      form and exchanged it with the other party.

16.9  This Agreement is personal to the Purchaser and the Purchaser shall not
      assign, transfer, charge or deal in any other manner with this Agreement
      or any of its rights under it, nor purport to do any of the same, nor
      sub-contract any or all of its obligations under this Agreement provided
      that -

      (a)   the Purchaser shall be entitled to assign the benefit of its right
            and interest in this Agreement to a wholly owned subsidiary of the
            Purchaser provided that if such assignee company (`THE ASSIGNEE')
            shall cease to be a wholly owned subsidiary of the Purchaser at any
            time when such benefits are outstanding, the Purchaser shall procure
            that prior to the Assignee ceasing to be a wholly owned subsidiary
            of the Purchaser it shall assign such benefits to the Purchaser or
            another wholly owned subsidiary of the Purchaser at that time; and

      (b)   the Purchaser shall be entitled with the consent of the Vendor, such
            consent not to be unreasonably withheld or delayed, to assign the
            benefit of its right and interest in this Agreement to another
            Member of the Purchaser's Group.

                                     PAGE 34

<PAGE>

16.10 The Vendor shall, and shall procure that Butlins shall, provide such
      information and assistance as the Purchaser shall reasonably require for
      the purposes of submitting a claim for relief from stamp duty under
      Section 76 of the Finance Act 1986.

                                     PAGE 35

<PAGE>

                                   SCHEDULE I

                                 THE PROPERTIES

                                     PART I
                                    BRIGHTON

1     PROPERTY DESCRIPTION

1.1   All that freehold property known as Ocean Hotel at Saltdean in the County
      Borough of Brighton in the County of Sussex ("Ocean Hotel") as comprised
      in the Root of Title referred to in paragraph 3 below.

1.2   All such rights, title and interest which Butlins has in the land edged
      orange (on the plan annexed hereto (`THE ORANGE LAND').

2     BUSINESS NAME

      Ocean Hotel, Saltdean, Brighton

3     ROOT OF TITLE

      In relation to the property referred to in paragraph 1.1 above -

      Conveyance dated 30th June 1954 made between (1) Investment and First
      Mortgage Company Limited and (2) Butlins.

4     MATTERS TO WHICH THE PROPERTY IS SUBJECT

4.1   Those contained or referred to in the following documents -

      (a)   Licence dated 9th February 1954 made between (1) Butlin Properties
            Limited and (2) The Mayor Aldermen and Burgesses of the Borough of
            Brighton;

      (b)   Agreement dated 25th July 1969 made between (1) Butlins and (2) The
            Sussex Police Authority;

                                     PAGE 36

<PAGE>

                    [OCEAN HOTEL, SALTDEAN, NR BRIGHTON MAP]

<PAGE>

      (c)   Agreement dated 19th January 1993 made between (1) Brighton Borough
            Council and (2) Butlins;

5     TENANCIES

5.1   Lease dated 19th July 1960 made between (1) Butlins Limited and (2) The
      South Eastern Electricity Board;

5.2   Agreement dated 5th October 1993 made between (1) Butlins limited and (2)
      Vodafone Limited.

6     SPECIAL CONDITIONS

6.1   Subject to 6.4 below no requisition or objection shall be made in respect
      of the fact that neither the Vendor nor Butlins is able to supply either
      the original or any examined copy or abstract of the Conveyance dated 30th
      June 1954 referred to above as the root of title.

6.2   No requisition or objection shall be made in respect of the fact that the
      Vendor is unable to supply any further particulars of Butlins occupation
      of the Orange Land.

6.3   The Vendor sells (or shall procure the sale of) such interest as Butlins
      may have in the Orange Land and no title guarantee is given by the Vendor
      nor Butlins in respect thereof.

6.4   The Vendor will at its own cost give reasonable assistance to reply to
      requisitions raised by HM Land Registry arising from the Purchaser's
      application to be registered as proprietor of the Orange Land with
      possessory title.

6.6   No requisition or objection shall he made in respect of the fact that
      neither the Vendor nor Butlins is able to supply either the original or an
      examined copy or abstract of the Conveyance dated 26th October 1938 made
      between (1) Land Freeholds Limited and (2) First Mortgage Co-Operative
      Investment Trust Limited.

                                     PAGE 37

<PAGE>

                                   SCHEDULE I

                                     PART 2
                                  SCARBOROUGH

I     PROPERTY DESCRIPTION

      All that freehold property known as The Grand Hotel, Scarborough comprised
      in and registered at HM Land Registry under Title Number NYK9958 with
      title absolute.

2     BUSINESS NAME

      Grand Hotel, Scarborough.

3     ROOT OF TITLE

      Not applicable.

4     MATTERS TO WHICH THE PROPERTY IS SUBJECT

      Those contained or referred to in the following documents -Section 106
      Agreement dated 30th April 1997 made between (1) The Scarborough Borough
      Council and (2) Butlins.

5     TENANCIES

      None

6     SPECIAL CONDITIONS

      None

                                     PAGE 38

<PAGE>

                                   SCHEDULE I

                                     PART 3
                                     MARGATE

1     PROPERTY DESCRIPTION

1.1   All that freehold property known as Norfolk Hotel, Eastern Esplanade,
      Margate as the same is registered at HM Land Registry under Title Number
      K266280 with title absolute.

1.2   All that freehold property known as St George's Hotel, Eastern Esplanade
      and land at the rear of 1 Norfolk Road, Margate, as the same is registered
      at HM Land Registry under Title Number K273897 with title absolute.

1.3   All that freehold property known as Hydro Grand Hotel and Cafe, Eastern
      Esplanade, Margate, the Patch, 41 Eastern Esplanade, Margate, Enfield
      House, Harold Road, Margate, and 27 Gordon Road, Margate as the same is
      registered at HM Land Registry under Title Number K28501 with title
      absolute.

1.4   All that leasehold property known as the Prince's Hotel, 14 and 16 Third
      Avenue, Eastern Esplanade, Margate, Kent, being the land demised by a
      lease dated 28th May 1993 made between (1) Geoffrey Edward and Margareta
      Sutton and (2) Butlins Limited.

1.5   Such right, title and interest as Butlins may have in the subsoil beneath
      the public highway between the properties described at paragraphs 1.1, 1.2
      and 1.3 above and including (but not by way of limitation) all subways and
      tunnels running between those properties.

2     BUSINESS NAME

      Grand Hotel, Cliftonville, Margate.

                                     PAGE 39

<PAGE>

3     ROOT OF TITLE

      In relation to the land referred to in paragraph 1.4 above: The lease
      dated 28th May 1993 referred to in paragraph 1.4 above.

4     MATTERS TO WHICH THE PROPERTY IS SUBJECT

      Those contained or referred to in the following documents -

4.1   Section 18 Agreement dated 25th july 1994 made between (1) Southern Water
      Services Limited and (2) Butlins Limited.

4.2   The rents reserved by the lease dated 28th May 1993 rcfcrred to in
      paragraph 1.4 above and the covenants, rights, exceptions, reservanons
      under the matters contained or referred to in the said lease.

5     TENANCIES

5.1   Lease dated 7th June 1961 made between (1) Butlins and (2) The South
      Eastern Electricity Board.

6     SPECIAL CONDITIONS

6.1   The Vendor will at its own cost give reasonable assistance to reply to
      requisitions raised by HM Land Registry arising from the Purchaser's
      application to be registered as proprietor of the property described in
      paragraph 1.5 to this Schedule 1 Part 3.

6.2   The parties hereby agree to the following -

      (a) For the avoidance of doubt (and as reflected in the Consideration),
      nothing in this Agreement gives or is intended to give the Purchaser any
      rights or entitlement to claim damages against the Highways Department or
      any other person, entity or authority relating to the works carried out by
      Butlins to the sewers and drains running

                                     PAGE 40

<PAGE>

      through/under the land adjoining the Property referred to in this Part of
      Schedule 1 (the `Works');

      (b) Further, for the avoidance of doubt (and as is reflected in the
      Consideration), the parties hereby agree that the Purchaser has no
      entitlement or claim whatsoever in respect of any damages which may he
      claimed and/or received by either (1) the Vendor or (2) Butlins against
      the Highways Department or any other person, entity or authority relating
      to the Works; and

      (c) The Purchaser shall promptly provide Butlins and the Vendor all
      reasonable assistance as may be required for the purposes of pursuing any
      claim relating to the Works.

                                     PAGE 41

<PAGE>

                                   SCHEDULE I

                                     PART 4
                                    BLACKPOOL

1     PROPERTY DESCRIPTION

1.1   All that leasehold property known as the Metropole Hotel, Blackpool in the
      County of Lancashire situate on the north promenade adjoining Talbot
      Square, Blackpool together with the gardens or car park yard and cellars
      thereto and the lock-up shops situated within the curtilage of the said
      hotel and known as Metropole Buildings, Blackpool being the property
      comprised in and demised by a lease dated 26th March 1965 made between (1)
      Metropole Hotel (Blackpool) Limited and (2) Butlins Limited as varied by a
      Deed of Variation dated 7/3/1999 made between (1) Ian David Lipman and
      others and (2) Butlins.

1.2   All that leasehold property relating to 146/148 Promenade, Blackpool,
      Lancashire situated only on the ground floor entrance hall and staircase
      together with the upper floors of the Landlord's property situate and
      numbered 146/148 Promenade, Blackpool, Lancashire excluding therefrom the
      portion of the premises comprised on the ground floor separate and apart
      from the premises hereby demised under roof under the external and/or
      structural parts of the building comprising the Premises being the
      property comprised in and demised by a lease dated 11th July 1994 and made
      between (1) Venturion Limited and (2) Butlins Limited.

2     BUSINESS NAME

      Metropole Hotel, Blackpool.

3     ROOT OF TITLE

      The two leases referred to above and dated 26th March 1965 and 11th July
      1994 respectively.

                                     PAGE 42

<PAGE>

4     MATTERS TO WHICH THE PROPERTY IS SUBJECT

      The rents reserved by the two said leases dated 26th March 1965 and 11th
      July 1994 referred to above respectively and the covenants, rights,
      exceptions, reservations under the matters contained or referred to in the
      two said leases.

5     TENANCIES

      None.

6     SPECIAL CONDITIONS

      None.

                                     PAGE 43

<PAGE>

                                   SCHEDULE I

                                     PART S
                                    LLANDUDNO

1     PROPERTY DESCRIPTION

1.1   All that freehold land and buildings at Llandudno comprising the Dolphin
      Cafe and part of the Grand Hotel, Llandudno which is shown for
      identification only edged red on the plan attached to the Conveyance and
      Assignment dated 27th March 1981 made between (1) Llandudno Hotels
      limited, (2) Trusthouse Forte Hotels Limited and (3) Butlins Limited.

1.2   All that leasehold land known as the Grand Hotel, Llandudno forming part
      of the land demised by a lease dated 31st December 1902 made between (1)
      The Most Honourable William Marquis of Abergavenny and others and (2) The
      Grand Hotel Llandudno Limited (excluding the land conveyed by the
      conveyance of 26th March 1981 made between (1) Llandudno Hotels Limited,
      (2) Trusthouse Forte Hotels Limited and (3) Entam Leisure Limited

2     BUSINESS NAME

      Grand Hotel, Llandudno

3     ROOT OF TITLE

3.1   Conveyance and assignment dated 27th March 1981 made between (1) Llandudno
      Hotels Limited, (2) Trusthouse Forte Hotels Limited and (3) Butlins

3.2   Lease dated 31st December 1902 made between (1) The Most Honourable
      William Marquis of Abergavenny and others and (2) The Grand Hotel
      Llandudno Limited

4     MATTERS TO WHICH THE PROPERTY IS SUBJECT

      Those contained and referred to in the following documents -

                                     PAGE 44

<PAGE>

4.1   The rents reserved by the said lease dated 31st December 1902 and the
      covenants, rights, exceptions, reservations and other matters contained or
      referred to in the said lease.

4.2   A licence to house condensing unit dated 27th March 1981 made between (1)
      Entam Leisure Limited and (2) Butlins.

4.3   Licence to place dustbins dated 27th March 1981 made between (1) Entam
      Leisure Limited and (2) Butlins.

4.4   Deed of grant of covenant dated 27th March 1981 made between (1) Entam
      Leisure Limited and (2) Butlins.

4.5   Deed dated 27th March 1981 made between (I) Entam Leisure Limited and (2)
      Butlins.

4.6   Conveyance dated 6th December 1983 made between (1) Entam Leisure Limited
      and First Leisure Corporation Plc and (2) Llandudno Pavilion Limited.

5     TENANCIES

      None.

6     SPECIAL CONDITIONS

      None.

                                     PAGE 45

<PAGE>

                                   SCHEDULE 2

                 TERMS AND CONDITIONS OF SALE OF THE PROPERTIES

1     STANDARD CONDITIONS

1.1   The Standard Conditions of Sale (3rd Edition) (the `STANDARD CONDITIONS')
      as amended hr paragraphs 1.2 and 1.3 shall be incorporated into this
      Agreement insofar as they are not varied by or inconsistent with the other
      terms expressly set out in this Agreement and shall apply to the sale and
      purchase of the Properties.

1.2   Standard Conditions 2.2, , 3.4, 4.1, 4.2, 4.3.2, 4.5.2, 4.5.5, 5.1,
      5.2.2(b), 5.2.2(g), 5.2.3 and 5.2.7, 6.1, 6.2, 6.3, 6.4, 6.6, 6.7 and 6.8,
      7, 8.3 and 9 shall not apply.

1.3   The Standard Conditions shall be varied as follows -

      (a)   the word `seller' shall be amended to Vendor and the word `buyer'
            shall be amended to `Purchaser' wherever each of them appears;

      (b)   in Standard Condition 1.1.1(a), sub-paragraphs (i) and (ii) shall be
            deleted and the words `the interest actually earned on money less
            any proper charges for handling the money' shall be inserted; and

      (c)   in Standard Condition 1.1.1 (g), the contract rate shall be 4% per
            annum above the base rate current from time to time of Lloyds Bank
            Plc.

      (d)   in Standard Condition 3.2.1, the word "contract" shall be replaced
            with the word "completion".

      (e)   in Standard Condition 5.2.2(f), the words `nor change its use and
            shall comply with all statutory obligations relating to the property
            and indemnify the Seller against all liability arising as a result
            of any breach of such `obligation' shall be added at the end;

                                     PAGE 46

<PAGE>

2     SPECIAL CONDITIONS

      In addition to the terms and conditions contained in this Schedule the
      relevant special conditions (`SPECIAL CONDITIONS') (if any) referred to in
      paragraph 6 of the relevant Part of Schedule 1 shall apply to the sale of
      each relevant Property

3     ENCUMBRANCES

      Each of the Properties is sold subject to and with the benefit of--

3.1   all matters registered or registrable by any local or other competent
      authority and any other requirement (including any charge notice order or
      proposal) of any local or other competent authority acting by statutory
      authority or by Royal Charter;

3.2   all matters affecting that Property which are disclosed or capable of
      discovery by searches or enquiries made of any person or local or other
      competent authority or statutory body or by inspection or survey and
      whether or not such searches or enquiries inspection or survey have in
      fact been made by or on behalf of the Purchaser;

3.3   overriding interests (as defined in section 70 of the Land Registration
      Act 1925) affecting that Property;

3.4   all matters contained or referred to in the property and charges registers
      of the registered title referred to (if relevant) in paragraph 1 of each
      Part of Schedule 1 as relate to that Property (`REGISTERED TITLES' and
      `REGISTERED TITLE' shall be construed accordingly) (other than charges to
      secure the repayment of money);

3.5   all matters contained or referred to in the documents referred to in
      paragraphs 3 and 4 of each Part of Schedule 1 as relate to that Property
      and the relevant tenancies (of any) referred to in paragraph 5 of each
      Part of Schedule 1 and/or all matters referred to in the schedule of deeds
      and documents supplied by the Vendor's Solicitors to the Purchaser's
      Solicitors before the date hereof (in this Schedule and in Schedule 1
      `DOCUMENTS').

                                     PAGE 47

<PAGE>

3.6   the rents reserved by and the tenant's covenants and other obligations
      contained in the Leases.

3.7   Any rights or interests (if any) affecting the Properties pursuant to the
      Concession Agreements.

4     TITLE

4.1   Title to the Properties (which in the case of any Property which is
      unregistered will commence from the Root of Title referred to in paragraph
      3 of the relevant Part ot Schedule 1) has been deduced to the Purchaser
      prior to the date of this Agreement and the Purchaser will not raise any
      objection to or requisition on such title.

4.2   The Purchaser having been provided with copies of the registers of each
      Registered Title and associated filed plan(s) and the documents and
      matters specified in the schedule of deeds and documents as supplied to
      the Purchaser's Solicitors before the date hereof is deemed to purchase
      with full knowledge of their respective terms and will not raise any
      objection to or requisition on them or on the matters contained or
      referred to in the paragraphs of the relevant Part of Schedule 1 relating
      to the Properties.

5     ASSURANCE

5.1   Notwithstanding that the Vendor sells (or is procuring the sale) with full
      title guarantee (save for in relation to the Orange Land) and the
      assurance of each Property is to contain provisions in the following terms
      modifying the covenants implied into it by the Law of Property
      (Miscellaneous Provisions) Act 1994 (the `ACT') -

      (a)   in section 6(1) the word `particular' shall be deleted and the words
            `or the contract for the disposition of the property' shall be added
            after the words `...to which disposition...';

      (b)   the words `who shall be deemed to have actual knowledge of all
            entries made in the public registers held by H.M. Land Registry, the
            local land charges registry and Companies House' shall be added at
            the end of section 6(2);

                                     PAGE 48

<PAGE>

      (c)   section 6(3) shall be deleted;

      (d)   the covenants to be implied on the part of Butlins as disponer in
            such assurance by sections 2, 3, 4 and 5 of the Act shall be limited
            so that they shall not be annexed and incident to that Property
            pursuant to section 7 of the Act and none of the provisions of the
            Act shall be interpreted to imply there is any obligation on Butlins
            to pay any Land Registry fees in relation to the registration of the
            Purchaser at H.M. Land Registry in respect of any of that Property;
            and

      (e)   section 4(1)(b) of the Act shall not apply to any condition or
            obligation on the part of the tenant contained in the Lease or
            imposed by common law or otherwise relating to the repair and/or
            condition of the Property.

5.2   Each such assurance shall -

      (a)   include such other provisions as shall be appropriate in the light
            of any Special Conditions applicable to, or any matter affecting,
            the relevant Property;

      (b)   contain covenants (by way of indemnity only) with Butlins and the
            Vendor that the Purchaser and its successors in title will observe
            and perform all obligations on the part of Butlins and the Vendor
            (or either) arising from (where appropriate) the relevant Lease(s)
            and the matters referred to in the property, proprietorship, and
            charges registers of the relevant Registered Title and the matters
            referred to in the documents referred to in paragraphs 3, 4 and 5
            (if any) of the relevant Part of Schedule 1 relating to that
            Property and will indemnify Butlins and the Vendor against all costs
            damages and expenses incurred by Butlins and the Vendor (or either)
            arising out of any failure by the Purchaser or its successors in
            title to do so; and

      (c)   be executed in duplicate and one part shall (as soon as reasonably
            practicable) be denoted and stamped by the Purchaser at its own cost
            and (without delay) delivered to the Vendor.

                                     PAGE 49

<PAGE>

5.3   The Vendor shall only be obliged to convey or transfer (or procure the
      conveyance or transfer of) each Property to the Purchaser in one parcel
      and by one assurance.

                                     PAGE 50

<PAGE>

                                   SCHEDULE 3

                                      PRICE

<TABLE>
<CAPTION>

                          MARGATE     SCARBOROUGH      BLACKPOOL     BRIGHTON      LLANDUDNO         TOTAL
<S>                     <C>             <C>            <C>          <C>            <C>         <C>
Goodwill, Records              21              21             21           21             21           105
and Customer List

Buildings                 850,000       1,420,000        690,000    1,040,500        900,000     4,900,000

Land                    2,597,999       3,163,999      2,341,999    3,439,999      1,755,999    13,299,995

Plant and Machinery        16,000          22,000         17,000       12,000         15,000        82,000
Fixed

Plant and Machinery       136,000         194,000        151,000      108,000        129,000       718,000
Muveable and Motor
Vehicle

TOTAL                   3,600,000       4,800,000      3,200,000    4,600,500      2,800,000    19,000,100

</TABLE>

                                     PAGE 51

<PAGE>

                                   SCHEDULE 4

                                   EMPLOYEES

METROPOLE HOTEL, BLACKPOOL

B. Ashcroft

B. Ashton

A. Aspinall

V. Beale

L.A. Bird

C. Brown

N. Busby

L.C. Cartmell

L. Cashion

B. Clarke

S. Colbourne

E. Corbett

M. Eckersley

J.S. Fielding

A. Fothergill

M. Gildea

J.T Gill

P.L Goodwin

J. Griffiths

G. Hadder

C.Z. Hale

J. Halstead

N. Harkness

B. Holden

C. Jackson

S.J. Jones

I. Kilner

                                     PAGE 52

<PAGE>

R.M. Knight

R. Leech

R. Mabe

T. Marsden

J. McGuckin

J.G. Morris

N. Morris Iliffe

P.A. Pearson

S. Randall

D.S. Randle

H.A. Robinson

J.F Sharp

S. Spellman

M.D. Taylor

J.A. Tennant

K.D. Ward

R. Ward

J. Watson

C. Weatherhogg

B. Whistance-Smith

P. Wildman

J. Wood

OCEAN HOTEL, BRIGHTON

D.M. Barton

L.D. Bennett

L.M. Betts (aka L. Hammond)

M.M. Bickley

A.Z. Blake

P.F. Bowyer

D. Brierton

T. Brietton

A. Buck

                                     PAGE 53

<PAGE>

J. Byrne

R.J. Callaghan

C. Carney

D.J Clayden

D. Cracknell

D.M. Crowhurst

S. Crowther

G. Davies

J. Davies

L. Davies

I.B.J. Dean

P.F. Dedman

L. Denby

M. Denton

A. Diplock

P. Dixon

S. Dowthwaite

J.F. Dunlop

T. Dwyer

S. Evans

C.P. Folkes

S.A. Goodchild

R.J. Grimes

R.P. Hall

S. Hawkes

V. Hitchens

S. Huntley

A.R. Jackson

A.B. Jenner

K.I. Jones

P.A. Jones

R.A. Jones

P. Keys

                                     PAGE 54

<PAGE>

P. Knott (aka P. Faulkner)

N. Lim

K. Mansi

T.M. Mawson

J. McAteer

S. McAteer

W.C. Mooney

J.G. Morton

A. Mullins

N. Mullins

M. Murphy

J. Ovett

L.M. Parmenter

R. Pattinson

C. Quantrill

A.M. Reed

P. Rogers

M.J. Rudd

L.O. Sandford

G. Slater

M. Smith

S.P. Taylor

J. Timmis

J.R. Tucknott

A. Turner

L.S. Tyler

N. Vanderveldt

T.M. Venables

J.D. Waldock

A.R. Ward

K.M. Warr

J. Watkins

N.A. Watts

                                     PAGE 55

<PAGE>

D.S. Way

P.J. Webber

L.F. Woolley

GRAND HOTEL, LLANDUDNO

M.J. Belcher

P. Bicknell

J. Boyle (nee Evans)

T. Crowther

K. Culshaw

N. Drinkwater

V. Duffy (aka V. Brown)

M.J. Earlam

J. Elliott

B. Fields

B. Fisher

M. Grimes

S. Gwynne

P. Jones

L.A. Kenton

S. Kidd

S. Lawley

T.C. Lawley

A.E.M. Lewis

R. Mason

S.A. McDonald-Smith

J.M. McMullen

C. Moorcroft

J. Murgatroyd

J. Owen

R.T. Owen

J.G. Protheroe

                                     PAGE 56

<PAGE>

R. Roberts

J. Rogers (aka J. Rothwell)

A.L Thompson

W.A. Vallor

A. White

G.D. Yates

GRAND HOTEL, MARGATE

D. Atkins

E. Bahler

H. Balloch

M. Barnes

E.M. Bennett

C.J. Browning

A.J. Burnage

C. Cocks

A.l. Cook

N. Cowell

S.L. Crow

C. Cummins

R. Dalton

D.A. Darrington

J.C Darwell

P.P. Devereux

D. Eaton

B.J. Ellis

R.J. Fagg

J. Friend

J.D. Garsidc

A.M. Gonella

C.J. Gray

                                     PAGE 57

<PAGE>

J.A. Hardwick

T.D. Hills

R. Howard

J.A. Hughes

M. Humphrey

J.E. Iles

D.L. Jackley

F. Jackson

R. James

C.A. Lester

J.S. Mills

I.J. Moreton

C.M. Norris

D.C. O'Grady

A.J. Offen

D.J. Pashley

C.J. Peel

C.A. Poulter (aka C.A. Cox)

J. Quinn

V.J. Ralph

V.M. Roberts

C.M. Robinson

L.V. Ross

L. Saunders

C. Smith

J. Smith

L.C. Strike

M. Stubbings

A.M. Thornton

R. Walling

K.J. Waters

M. Wilkie

D.P. Young

                                     PAGE 58

<PAGE>

B. Youngs

GRAND HOTEL. SCARBOROUGH

R. Adams

M. Alves

R.L. Alves

J.A. Bartlett

J.C. Beedham

M. Bryan

B.F. Cook

J.W. Crichton

J.P. Dunn

A. Ellis

E.Ellis

A. Hallam

P. Hallam

W.A. Hardaker (nee McCourt)

M.J. Helyard

R.C. Hindie

A.A. Hirstle

P. Howe

E. Jacobs

S. Linley

R.T. Mansfield

S.  Mansi

S.J. Mawson

S. Mills

G. Montgomery

M. Montgomery

G. Moodie

A. North

S. Pattrick

                                     PAGE 59

<PAGE>

G. Philps

M. Prendergast

V. Shields

H. Sims

R.E. Spindler

C.A. Stankiste

J.M. Taylor

S. Walkcr

J.P. Wells

                                     PAGE 60

<PAGE>

                                   SCHEDULE 5

                            THE CONCESSION AGREEMENTS

o     a contract for cigarette vending service dated 19th December 1997 made
      between (1) Rank Leisure Holdings Plc and (2) Sinclair Collis (Vending)
      Limited;

o     an agreement dated 25th February 1998 between (1) Rank Group Holidays
      Division and (2) LRC Vending;

o     an agreement dated 2nd March 1998 made between (1) Butlins Limited and (2)
      Nigara Therapy UK Limited;

o     an agreement dated 26th January 1998 made between (1) Butlins Limited and
      (2) Mrs J Gilmartin;

o     an agreement dated 26th January 1998 made between (1) Butlins Limited and
      (2) Mrs M Dray;

o     an agreement dated 26th January 1998 made between (1) Butlins Limited and
      (2) Mr B Gunn;

o     an agreement dated 26th January 1998 made between (1) Butlins Limited and
      (2) Falmer & Salter Dean Taxis; and

o     an agreement dated 28th January 1998 made between (1) Butlins Limited and
      (2) Station Taxis;

o     an agreement dated 13th April 1999 made between (1) Butlins Limited and
      (2) R Kenyon re: the provision of a taxi service;

o     an agreement dated 2nd January 1998 made between (1) Butlins Limited and
      (2) Station Taxis re: the provision of a taxi service;

                                     PAGE 61

<PAGE>

o     an agreement dared 15th November 1998 made between (1) Butlins limited and
      (2) Mr H Mountain re: the provision of coach tours.

                                     PAGE 62

<PAGE>

                                   SCHEDULE 6

                                 THE WARRANTIES

I     ACCOUNTS

1.1   The Accounts have been prepared in accordance with generally accepted
      accounting practice in the UK and on bases and policies consistent with
      the Butlins audited annual accounts for the year ended 31 December 1997.

1.2   The figures contained in the Management Accounts have been properly used
      in the preparation of the Accounts.

2     TITLE TO THE ASSETS

2.5   The Assets (other than the Properties) -

      (a)   are the absolute and sole property of the Vendor free from any lien,
            option, mortgage, charge, lease, licence, or other encumbrance; and

      (b)   in the case of tangible assets, are in the possession or under the
            exclusive control of the Vendor.

3     CONTRACTS

3.1   None of the Contracts has been entered into by Butlins or the relevant
      Member of its Group otherwise than in the ordinary course of the Business.

3.2   So far as each of Butlins and the Vendor is aware, no party to any
      Contract is in material breach of it.

3.3   So far as each of Butlins and the Vendor is aware, no default or event has
      occurred as a result of which any of the Contracts will be terminated.

                                     PAGE 63

<PAGE>

3.4   None of the Contracts current1y commits the Vendor's Group in relation to
      the Business to an expenditure in excess of (pound)20,000 to be made
      during the course of any six month period following Completion.

4     CARRYING ON OF THE BUSINESS

4.1   Other than the Trade Marks and the Business Names no intellectual property
      rights, are required for the purpose of carrying on the Business, neither
      Butlins or the Vendor is party to any intellectual property licence for
      the purposes of the Business and the carrying on of the Business does not
      so far as Butlins and the Vendor are aware infringe any right of another
      person in respect of any intellectual property rights or has given rise to
      payment by Butlins or the Vendor of any royalty or of any sum in the
      nature of a royalty or to liability to pay compensation.

4.2   Butlins has carried on the Business solely under its corporate name, the
      name `Entertainment Hotels' and the Business Names and, so far as each of
      Butlins and the Vendor is aware, without infringement of any proprietary
      right or interest of any other person or liability to pay any royalty.

4.3   Neither Butlins or the Vendor is a member of any partnership, consortium,
      trade association or any other association of persons (whether
      incorporated or not incorporated) which relates to the Business.

4.4   Butlins has not carried on the Business through any branch, agency or
      permanent establishment outside the United Kingdom.

4.5   Copies of the Licences are attached to the Disclosure Letter and the
      Licences are, so far as Butlins and the Vendor are aware, in full force
      and effect and save for the sale of the Business hereunder neither Butlins
      or the Vendor are aware of any current circumstances which indicates that
      any of the Licences is likely to be revoked or is not capable of transfer
      or renewal in the ordinary course.

                                     PAGE 64

<PAGE>

5     LITIGATION

      In relation to the Business neither Butlins nor any Member of the Vendor's
      Group is engaged or involved or proposing to engage in

      (a)   any litigation, prosecution, arbitration or other legal proceedings
            (whether as plaintiff, defendant or third party) except for normal
            debt collection;

      (b)   any proceedings or enquiries before any tribunal;

      (c)   so far as it is aware, any investigation by the Inland Revenue, the
            Office of Fair Trading, the Commission of the European Communities
            or any other authority; or

      (d)   any industrial dispute or action;

      and so far as each of Butlins and the Vendor is aware there are no such
      claims or actions or investigations pending or threatened by or against
      any Member of the Vendor's Group in relation to the Business.

6     INSURANCE

6.1   The policies of insurance maintained by Butlins and its Group relating to
      the Business and the Assets are, so far as each of Butlins and the Vendor
      is aware, valid and in force and all premiums due in respect of the same
      have been paid.

6.2   There is no insurance claim by the Vendor or Butlins outstanding in
      respect of the Business or the Assets.

7     EMPLOYEES

7.1   Particulars accurate in all material respects of the terms of employment
      of those persons who are employed by the Vendor, Butlins or any other
      Member of the Vendor's Group (THE `EMPLOYING COMPANIES') exclusively for
      the purpose of the

                                     PAGE 65

<PAGE>

      Business on the date hereof under permanent contracts of employment are
      set out in the Disclosure Letter.

7.2   None of the Employing Companies is a party to any agreement or
      arrangement for profit sharing with the Employees, or for the payment to
      the Employees of bonuses or incentive payments, or any collective
      bargaining or other agreement or arrangement with any trade union in
      respect of the Employees.

7.3   No Employee listed in Schedule 4 has given to any of the Employing
      Companies or received from any of the Employing Companies notice of
      termination of his employment.

7.4   There are no employees engaged in the Business or other individuals who
      provide services to the Business as consultant, other than the Employees.

7.5   None of the Employing Companies is party to any collective agreement,
      arrangement or other understanding with any trade union, staff association
      or other body representing the Employees.

7.6   So far as each of Butlins and the Vendor is aware, each of the Employing
      Companies has in relation to each of the Employees in connection with
      their employment in the Business -

      (a)   complied in all material respects with its obligations under the
            Trade Union and Labour Relations (Consolidation) Act 1992, the Sex
            Discrimination Act 1975, the Race Relations Act 1976, the Employment
            Rights Act 1996, Article 119 of The Treaty of Rome, the Equal
            Treatment Directive, the Disability Discrimination Act 1995 and all
            other statutes, regulations and codes of practice relevant to its
            relations with the Employee and with any recognised trade union
            representing him and all collective agreements from time to time in
            force relating to such relations or the conditions of service of the
            Employee and has maintained such records regarding the service of
            the Employee as required by the Working Time Regulations 1998;

                                     PAGE 66

<PAGE>

      (b)   discharged fully its obligations arising prior to Completion to pay
            all salaries, wages, commissions, bonuses, overtime pay, holiday
            pay, sick pay, accrued entitlement under incentive schemes and other
            benefits of or connected with his employment with the relevant
            Employing Company; and

      (c)   without prejudice to paragraph 7.6(a), complied in all material
            respects with all its obligations under statute and otherwise
            concerning health and safety at work and has not incurred any
            undischarged liability to any Employee in respect of any accident or
            injury.

7.7   No Employing Company has in relation to the Business entered into and
      which remains effective -

      (a)   any agreement or arrangement to make any payments (other than
            emoluments) to or on behalf of any of the Employees;

      (b)   any agreement or arrangement imposing an obligation on the relevant
            Employing Company to increase the rates of remuneration of, or to
            make any bonus or incentive payments or any benefits in kind or any
            payments under a profit-sharing scheme to or on behalf of, any of
            the Employees at any future date;

      (c)   any negotiation with any of the Employees for a change in the
            emoluments or other terms of engagement of that Employee; or

      (d)   any agreement or arrangement for the provision of compensation on
            the termination of employment of any Employee beyond the minimum
            required by law; and

      for the purposes of this paragraph 7.7 a reference to `Employees' shall be
      a reference to those Employees listed in Schedule 4 only and `Employee'
      shall be construed accordingly.

                                     PAGE 67

<PAGE>

7.8   No dispute has arisen since 1 January 1998 between any Employing Company
      and a material number or category of the employees engaged in the Business
      at the relevant time and so far as each of Butlins and the Vendor is aware
      there are no present circumstances which are likely to give rise to any
      such dispute.

7.9   So far as each of Butlins and the Vendor is aware there are no claims
      pending or threatened against any Employing Company by any of the
      Employees or former employees engaged in the Business and so far as each
      of Butlins and the Vendor is aware there is no industrial action or
      dispute threatened or existing or anticipated by any of the Employees.

7.10  So far as each of Butlins and the Vendor is aware there are no enquiries
      or investigations pending or threatened affecting Butlins or the Vendor in
      relation to the Business by the Equal Opportunities Commission or
      Commission for Racial Equality.

7.11  Neither the Vendor nor any Member of the Vendor's Group has in relation to
      the Business offered any permanent contract of employment to any person
      which remains outstanding.

7.12  There is no person employed or previously employed by the Vendor or any
      Member of the Vendor's Group exclusively in relation to the Business who
      is on maternity leave, absent on grounds of disability or other leave of
      absence and has a statutory or contractual right to return to work for the
      Vendor in relation to the Business.

8     PENSIONS

8.1   With the exception of the Rank Plan and the Rank Scheme, there are no
      agreements or arrangements for the provision of any relevant benefits (as
      defined in Section 612(1) of Chapter I Part XIV with the omission of the
      exception in that definition) for any employee or officer or former
      employee or officer of the Business or for any

                                     PAGE 68

<PAGE>

      spouse or dependant of any such person nor has any proposal been
      announced to establish any such agreement or arrangement.

8.2   The Vendor has no obligation to contribute to any pension scheme (as
      defined in Section 630 of Chapter I Part XIV) in respect of any employee
      or officer or former employee or officer of the Business.

8.3   The Vendor is not providing and has not at any time provided or promised
      to provide ex gratia pensions or other benefits in respect of any person.

8.4   Copies of the current editions of the members' booklets of the Rank Plan
      and the Rank Scheme as issued to current members of the Rank Plan and the
      Rank Scheme (as appropriate) have been provided to the Purchaser; such
      booklets provide an accurate outline of the contributions and benefits
      under the Rank Plan and the Rank Scheme save to the extent that those
      benefits have been amended by the deeds of amendment dated 16 February
      1999 and 27 May 1999 (relating to the Rank Plan) and a deed of amendment
      dated 27 May 1999 (relating to the Rank Scheme) copies of which have also
      been provided to the Purchaser and which are identified in the Disclosure
      Letter.

8.5   No discretion or power has been exercised under the Rank Plan and the Rank
      Scheme in relation to any of the Employee Members to -

      (a)   augment benefits;

      (b)   admit to membership anyone not otherwise eligible for admission;

      (c)   admit to membership anyone on terms relating to transfer credits in
            circumstances where a full transfer payment has not yet been made in
            full in respect of that person; or

      (d)   pay a contribution or provide a benefit which would not otherwise be
            paid or provided.

                                     PAGE 69

<PAGE>

8.6   The Rank Plan and the Rank Scheme are approved as an exempt approved
      scheme within the meaning of Chapter I Part XIV and there is in force in
      respect of employments with the Company to which either the Rank Plan or
      the Rank Scheme relates an appropriate contracting-out certificate (within
      the meaning of section 7 of the Pension Schemes Act 1993) and there is no
      reason why such approval will or may cease or any such contracting-out
      certificate will or may be cancelled surrendered or varied.

8.7   The Rank Plan and the Rank Scheme have at all times been administered in
      accordance with its trusts powers and provisions and of the Pension
      Schemes Office and with due regard to the general requirements of trust
      law.

8.8   The membership data relating to the Rank Plan and the Rank Scheme that has
      been disclosed to the Purchaser is complete and accurate in all material
      respects.

8.9   All amounts due to be paid to each of the Rank Plan and the Rank Schemes
      have been paid when due.

9     TAX-GENERAL

9.1   Butlins and the Vendor have each properly operated the Pay As You Earn
      system (including its application to National Insurance Contributions) and
      have complied with their respective reporting obligations to the Inland
      Revenue in connection with all benefits provided for the Employees by
      Butlins and the Vendor.

10    TAX-VAT

10.1  Butlins and the Vendor are registered as taxable persons for the purposes
      of any tax legislation relating to Value Added Tax, have both maintained
      and obtained up to date records, invoices and other documents appropriate
      or requisite for the purposes of Value Added Tax relating to the Business
      and have complied in all material respects with all provisions of any tax
      legislation relating to Value Added Tax in relation to the Business.

                                     PAGE 70

<PAGE>

10.2  All documents in the possession or under the control of the Vendor or to
      the production of which the Vendor is entitled which arc necessary to
      establish the title of the Vendor to any of the Business Assets and which,
      in the United Kingdom or elsewhere, attract either stamp duty or require
      to be stamped with a particular stamp denoting that no duty is chargeable
      or that the document has been produced to the appropriate authority, have
      been properly stamped; and no such documents which are outside the United
      Kingdom would attract stamp duty if they were brought into the United
      Kingdom.

11    PROPERTY

11.1  Butlins have relied on the presumption of law that Butlins owns the
      subsoil beneath the public highway running between the properties
      described at paragraphs 1.1, 1.2 and 1.3 of Part 3 of Schedule 1 in the
      construction and use of the subway tunnels and service media running
      between such properties and as far as Butlins is aware they have received
      no written notice from any other party claiming any right title or
      interest in such subsoil.

11.2  As far as the Vendor is aware the written replies by the Vendor's
      Solicitors to written property enquiries made by the Purchaser's
      Solicitors are true and accurate in all material respects.

11.3  No Rank Group Company other than Butlins has any claim, right, title or
      interest in the Orange Land as defined in paragraph 1.2 of Part 1 of
      Schedule 1.

                                     PAGE 71

<PAGE>

                                   SCHEDULE 7

                      PROVISIONS CONCERNING THE WARRANTIES

INTERPRETATION

1     In this Schedule `Claim' means a claim for breach of any of the
      Warranties.

BASIS ON WHICH WARRANTIES GIVEN

2     The Purchaser hereby confirms that it is not aware of any matter or fact
      which would constitute a breach of any of the Warranties.

TIME LIMIT FOR MAKING CLAIMS

3     The Vendor shall not be liable for a Claim unless the Purchaser gives
      written notification to the Vendor of the particulars of the Claim
      (setting out in reasonable detail the basis of the Claim and the amount
      claimed), in the case of a Claim relating to Tax, before the expiry of 7
      years from Completion and, in the case of any other claim, before the
      expiry of 18 months from Completion and either liability for the Claim is
      accepted by the Vendor in writing or a claim form in respect of the Claim
      is duly served by the Purchaser in either case within 180 days from the
      day of notification of the Claim by the Purchaser to the Vendor.

EXCLUSION OF SMALL CLAIMS

4     The Vendor shall not be liable for a Claim unless the amount payable in
      respect of that Claim -

      (a)   individually exceeds (pound)20,000; and

      (b)   in aggregate exceeds (pound)200,000 when added to the amount which
            is payable (or but for subparagraph (a) would be payable) in respect
            of every other Claim

      in which case the Vendor shall be liable for the whole amount not only the
      excess above (pound)200,000.

                                     PAGE 72

<PAGE>

MAXIMUM LIABILITY

5     The total liability of the Vendor under this Agreement (including
      liability for interest and costs) shall not exceed (pound)19,000,000
      (nineteen million pounds). The Parties agree that at any time when any
      amount is outstanding under the Loan Note, the liability of the Vendor
      hereunder in respect of a Claim to the extent of the said amount
      outstanding shall be settled and satisfied by a reduction, in accordance
      with the provisions of the Loan Note, in the amount payable by the
      Purchaser under the Loan Note.

OTHER LIMITATIONS OF LIABILITY

6     The Vendor shall not be liable for a Claim to the extent that its subject
      matter -

      (a)   is fairly disclosed in the Disclosure Letter;

      (b)   would have been fairly disclosed by a search of the microfiches
            relating to Butlins and the Vendor held at Companies Registry no
            earlier than two Business Days immediately prior to the date hereof.

7     The Vendor shall not be liable for any Claim -

      (a)   to the extent that the Claim would arise or the amount of the Claim
            would be increased after the date of Completion as a result of -

            (i)   the enactment of any legislation;

            (ii)  a judgment or change in the interpretation or application of
                  any law or of any ruling or practice relating to any law or of
                  any ruling or practice of any administrative authority
                  (including taxing authorities);

            (iii) a change in the basis or method of calculation of tax made
                  after the date of this Agreement;

                                     PAGE 73

<PAGE>

            (iv)  the amendment, modification or withdrawal of any
                  extra-statutory concession previously made available by the
                  Inland Revenue; or

            (v)   a change in any generally accepted accounting practice;

      (b)   to the extent that the liability to which the Claim relates is
            attributable to any act, omission, transaction or arrangement of the
            Purchaser (or any person deriving title from it) or any Member of
            its Group done in the knowledge that the resulting circumstances
            will give rise to a Claim;

      (c)   to the extent that the Purchaser (or any person deriving title from
            it) or any other Member of its Group is entitled to claim under and
            as a result of such claim receives payment under any insurance
            policy against the loss or damage suffered as a result of the
            circumstances giving rise to the Claim (and the Purchaser agrees to
            procure that such claim is made and that all reasonable steps are
            taken to recover for such loss or damage under such insurance
            policy); and

      (d)   to the extent that and in the amount which the loss occasioned
            thereby has been recovered under any other provision of this
            Agreement or otherwise from the Vendor or any other Member of its
            Group.

8     The amount of the Vendor's liability for any Claim shall be reduced by -

      (a)   any sum which is recovered (whether by way of insurance,
            indemnification or otherwise) by the Purchaser in respect of the
            loss or damage suffered by reason of the relevant breach, less the
            amount of any reasonable costs and expenses incurred in obtaining
            payment of that sum and of any tax for which the Purchaser is liable
            by reason of its receipt of that sum; and

      (b)   the amount, if any, by which any tax for which the Purchaser is or
            would be liable but for the circumstances giving rise to the Claim
            is reduced or extinguished by reason of the circumstances giving
            rise to the Claim,

                                     PAGE 74

<PAGE>

            and if the Vendor has paid to the Purchaser any amount in respect of
            the Claim before the recovery of the sum mentioned in sub-paragraph
            (a) or before agreement of the amount by which the tax mentioned in
            sub-paragraph (b) is to be reduced or extinguished, the Purchaser
            shall repay to the Vendor the amount by which its liability is so
            reduced.

PROCEDURE FOR MAKING A CLAIM FOR BREACH OF ANY OF THE WARRANTIES

9     If any matter which will give rise to a Claim for breach of the Warranties
      comes to the notice of the Purchaser or any other Member of its Group the
      following provisions shall apply -

      (a)   the Purchaser shall as soon as reasonably possible (and in any event
            within the following 10 Business Days) notify the Vendor in writing
            of the matter and make available to it all information and documents
            in the possession or under the control of the Purchaser or any other
            Member of its Group in so far as they relate to that matter;

      (b)   subject to paragraph 10 below neither the Purchaser nor any other
            Member of its Group shall make any admission of liability or take
            any other action in connection with the matter without the previous
            written consent of the Vendor (not to be unreasonably withheld or
            delayed); and

      (c)   subject to paragraph 10 below and subject to it being indemnified to
            its reasonable satisfaction against all costs and expenses which
            might be incurred by it, the Purchaser shall take such steps as the
            Vendor may reasonably request to mitigate its liability under the
            relevant Claim.

10    Notwithstanding the provisions of paragraph 9 above -

      (a)   the Purchaser shall not be precluded from proceeding with a Claim
            whilst complying with or after complying with the provisions of
            paragraph 9; and

                                     PAGE 75

<PAGE>

      (b)   subject always to the Purchaser and it's Group's common law duty to
            mitigate their loss neither the Purchaser or any Member of the
            Purchaser's Group shall be required to take any step or omit to take
            any step to the extent that the Purchaser or the relevant Member of
            the Purchaser's Group reasonably considers that it would damage the
            goodwill or reputation of the Purchaser's Group.

GENERAL

11    For the purpose of determining the amount of the Claim in paragraph 4 or
      for the purposes of paragraph 5 no account will be taken of any amount for
      which the Vendor has no liability by virtue of any other paragraph of this
      Schedule.

12    The Purchaser may not assign or purport to assign the benefit of any or
      all of the Warranties save that -

      (a)   the Purchaser may assign the same to a wholly owned subsidiary of
            the Purchaser provided always that in the event such assignee (`THE
            ASSIGNEE') shall cease to be a wholly owned subsidiary of the
            Purchaser the Purchaser shall procure that prior to such cessation
            the Assignee shall assign the benefits assigned to it to another
            wholly owned subsidiary of the Purchaser for the time being; and

      (b)   the Purchaser may with the consent of the Vendor, such consent not
            to be unreasonably withheld or delayed, assign the same to another
            Member of the Purchaser's Group.

13    The Purchaser's sole remedy against the Vendor in respect of any Claim
      will be in damages.

14    Any payment made by the Vendor to the Purchaser in respect of a Claim
      shall be treated as a reduction of the consideration for the Assets.

                                     PAGE 76

<PAGE>

15    Any reference in Schedule 6 to "so far as the Vendor and Butlins is
      aware", or to some other similar or other state of awareness, knowledge,
      information or belief shall be deemed to be a reference only to the actual
      knowledge (after making due and careful enquiry) of Jerry Fowden, Rhett
      Vallally and Russell Margerrison in respect of the Warranties other than
      those contained in paragraph 11 and in respect of the Warranties contained
      in paragraph 11 of Schedule 6 only, to the actual knowledge (after making
      due and careful enquiry) of Rhett Vallally, Ruth Shaw and Gordon Jacobs.

16    The Purchaser acknowledges that the provisions of this Schedule 7 are fair
      and reasonable in all the circumstances and in particular, but without
      limitation, for the purposes of The Misrepresentation Act 1967 and The
      Unfair Contract Terms Act 1977.

17    The Purchaser agrees that it will not take any action against any director
      or former director of any Rank Group Company or any person employed or
      previously employed by any Rank Group Company to attempt to recover any
      loss in respect of any breach of the Warranties.

18    None of the provisions of this Schedule 7 shall apply to limit the
      liability of the Vendor in the case of fraud or fraudulent concealment.

19    The Purchaser undertakes to (and undertakes to procure that each Member of
      it's Group will) comply with its common law duty to mitigate its loss in
      respect of any Claim.

                                     PAGE 77

<PAGE>

                                   SCHEDULE 8

                                  MOTOR VEHICLE

PROPERTY                         VEHICLE TYPE                       REG. NO.

Blackpool                       Vauxhall Astra                      M829 VGS

                                     PAGE 78

<PAGE>

                                   SCHEDULE 9

                                    PENSIONS

1     INTERPRETATION

1.1   In this Schedule, the following expressions shall unless the context
      otherwise requires have the following meanings -

      `ACTUARY'S LETTER' means the letter dated 18th June 1999 from the Vendor's
      Actuary in the agreed form;

      `EMPLOYEE MEMBERS' means those Employees who are members of the Rank Plan
      or the Rank Scheme at the Completion Date (but excluding Life Assurance
      Members);

      `LIFE ASSURANCE MEMBERS' means those Employees who are members of the Rank
      Plan at the Completion Date for death in service benefits only;

      `PAYMENT DATE' means -

      (a)   in the case of the Plan Transfer Amount, 60 days after whichever is
            the latest of:

            (i)   the date on which the Plan Transfer Amount is determined under
                  paragraph 3;

            (ii)  the date on which the Vendor has received the forms of request
                  or consent referred to in the definition of `Transferring
                  Employee Members';

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<PAGE>

            (iii) the date on which the Rank Plan Trustee has received such
                  completed documents as it reasonably requires to enable a
                  transfer payment to be made to a personal pension scheme;

            (iv)  the Purchaser produces evidence to the reasonable satisfaction
                  of the Vendor that in so far as any part of the payment would
                  represent amounts in respect of accrued rights to guaranteed
                  minimum pensions or section 9(2B) rights, the Purchaser's
                  Scheme is a contracted out scheme or in so far as the payment
                  would relates to such rights of any Transferring Member
                  Employee, the personal pension scheme for him within the
                  Purchaser's Scheme is an appropriate scheme and (in either
                  case) the effect of making that payment to the Purchaser's
                  Scheme will be to discharge the liability of the Rank Plan to
                  provide guaranteed minimum pensions or section 9(2B) rights
                  for and in respect of each such Transferring Employee Member;
                  and

      (b)   in the case of the Scheme Transfer Amount 60 days after whichever
            is the latest of

            (1)   the date on which the Vendor has received the forms of request
                  or consent referred to in the definition of `Transferring
                  Employee Members';

            (ii)  If the Purchaser's Scheme is a Group Personal Pension Scheme
                  comprising personal pension schemes, the Rank Scheme Trustee
                  has received such completed documents as it reasonably
                  requires to enable a transfer payment to be paid to a personal
                  pension scheme;

            (iii) the Purchaser produces evidence to the reasonable satisfaction
                  of the Vendor that in so far as any part of the payment would
                  represent amounts in respect of protected rights, the
                  Purchaser's Scheme is a contracted out scheme or in so far as
                  the payment would relates to such

                                     PAGE 80

<PAGE>

                  rights of any Transferring Member Employee, the personal
                  pension scheme for him within the Purchaser's Scheme is an
                  appropriate scheme and (in either case) the effect of making
                  that payment to the Purchaser's Scheme will be to discharge
                  the liability of the Rank Scheme to provide protected rights
                  for and in respect of each such Transferring Employee Member;

      `1993 ACT' means the Pension Schemes Act 1993 (as amended);

      `PLAN TRANSFER AMOUNT' means the amount so defined in the Actuary's Letter
      and determined according to the method and in accordance with the
      assumptions set out therein;

      `PURCHASER'S SCHEME' means the group personal pension arrangement to be
      established or nominated under paragraph 2;

      `RANK ACTUARY' means Jonathan Bernstein of William M Mercer Limited or
      such other actuary or firm of actuaries as may be appointed for the
      purposes of this Schedule;

      `RANK PLAN TRUSTEE' means the trustee or trustees for the time being of
      the Rank Plan;

      `RANK SCHEME TRUSTEE' means the trustee or trustees for the time being of
      the Rank Scheme;

      `SCHEME TRANSFER AMOUNT' means the sum applicable to the Transferring
      Employee Members who are members of the Rank Scheme on the basis that each
      is entitled to the benefit of all contributions paid by or in respect of
      him to the Rank Scheme, all transfer payments received by the Rank Scheme
      in respect of him and in both cases the investment returns thereon,
      whether or not he has been an active member of the Rank Scheme for two
      years;

                                     PAGE 81

<PAGE>

      `TRANSFER AMOUNTS' means the Plan Transfer Amount and the Scheme Transfer
      Amount;

      `TRANSFERRING EMPLOYEE MEMBERS' means those Employee Members who are
      members of the Rank Plan or the Rank Scheme on the day preceding the
      Completion Transfer Date -

            (i)   who become members of the Purchaser's Scheme as from the
                  Completion Date pursuant to the offer of membership referred
                  to in paragraph 2.2; and

            (ii)  request or consent in writing within six months from the
                  Completion Date, in a form acceptable to the Rank Plan Trustee
                  or the Rank Scheme Trustee, as appropriate, such form to
                  include a discharge and indemnity in favour of the Rank Plan
                  Trustee or the Rank Scheme Trustee, as appropriate, to a
                  transfer of assets being made from the Rank Plan or the Rank
                  Scheme to the Purchaser's Scheme in relation to the benefits
                  accrued in respect of or attributable to their pensionable
                  service under the Rank Plan or the Rank Scheme up to the
                  Completion Date and whose request or consent has not
                  subsequently been withdrawn;

1.2   The headings in this Schedule are for convenience only and shall not
      affect its interpretation.

1.3   In this Schedule `contracting out certificate', `contracted out',
      `protected rights', and `guaranteed minimum pensions' bear the meanings
      given to them in the 1993 Act and `section (2B) rights' means rights under
      section 9(2C) of the 1993 Act.

1.4   This Schedule shall be applied separately to the Rank Plan and the Rank
      Scheme.

                                     PAGE 82

<PAGE>

2     NEW PENSION ARRANGEMENTS

      The Purchaser undertakes to the Vendor -

2.1   to establish or nominate with effect from the Completion Dates a new or
      existing group personal pension scheme which includes for each
      Transferring Member Employee a personal pension scheme which at the option
      of the Transferring Member Employee may be an appropriate personal pension
      scheme (within the meaning of section 7 of the 1993 Act) to which the
      respective Trustees of the Rank Plan and the Rank Scheme can make a
      transfer of assets without prejudicing the exempt approved status of the
      Rank Plan or the Rank Scheme under Chapter I Part XIV;

2.2   to offer or procure to be offered to each Employee Member who is a member
      of the Rank Plan or the Rank Scheme and who is in the employment of the
      Purchaser on the day preceding the Completion Date membership of the
      Purchaser's Scheme for future service as from the Completion Date and pay
      contributions thereto in respect of Transferring Employee Members of the
      Rank Plan and the Rank Scheme;

2.3   to offer or procure to be offered to each Employee Member referred to in
      paragraph 2.2 and each Life Assurance Member with effect from the
      Completion Date death in service benefits no less favourable than the
      benefits currently provided for him under the Rank Plan immediately before
      the Completion Date.

3     TRANSFER FROM RANK PLAN AND RANK SCHEME

3.1   Subject to the fulfilment by the Purchaser of its undertakings under
      paragraph 2 of this Schedule, as to which the Purchaser shall produce such
      evidence as the Vendor may reasonably require, the Vendor undertakes to
      the Purchaser, subject to any approval of the Inland Revenue which may be
      required which the Vendor undertakes to use all reasonable endeavours
      promptly to obtain; that the Vendor will -

      (a)   request the Rank Plan Trustee to pay or transfer to the trustees or
            managers of the Purchaser's Scheme the Plan Transfer Amount on the
            Payment Date in full

                                     PAGE 83

<PAGE>

            and final satisfaction of all interests (other than in respect of
            additional voluntary contributions) of or in respect of each
            Transferring Employee Member of the Rank Plan; and

      (b)   request the Rank Scheme Trustee to pay or transfer to a personal
            pension scheme within the Purchaser's Scheme) the Scheme Transfer
            Amount on the Payment Date including the investment return accruing
            on each Transferring Employee Member's account in the Rank Scheme
            during the period from the Completion Date until the Payment Date.

3.2   The requests referred to in paragraph 3.1 shall be for the Plan Transfer
      Amount and the Scheme Transfer Amount to be paid in cash or if the
      Purchaser and the Vendor agree in the form of other assets acceptable to
      the Rank Plan Trustee or the Rank Scheme Trustee (as the case may be) and
      the trustees or managers of the Purchaser's Scheme or partly in cash and
      partly in the form of other assets

      (a)   reduced in the case of the Plan Transfer Amount by the amount
            required to meet the liability of the Rank Plan in relation to
            guaranteed minimum pensions and section 9(2B) rights of the
            Transferring Employee Members thereof in respect of whom the Rank
            Plan Trustee cannot make a transfer payment to a personal pension
            within the Purchaser's Scheme because that scheme is not an
            appropriate personal pension scheme; and

      (b)   less, in the case of the Scheme Transfer Amount, the amount required
            to meet the liability of the Rank Scheme in relation to protected
            rights of each Transferring Employee Member thereof in respect of
            whom the Rank Scheme Trustee cannot make a transfer payment to a
            personal pension scheme within the Purchaser's Scheme because that
            scheme is not an appropriate personal pension scheme which would
            have the effect of discharging such liability.

                                     PAGE 84

<PAGE>

4     BENEFITS FOR PAST SERVICE

4.1   Subject to receipt by the trustees or managers of the Purchaser's Scheme
      of the sums referred to in paragraph 3 of this Schedule the Purchaser
      shall direct that such trustees or managers shall credit to the personal
      pension scheme within the Purchaser's Scheme which relates to the
      Transferring Employee Member of that part (as determined by the Plan
      Actuary) of the Plan Transfer Amount or the Scheme Transfer Amount (as the
      case may be) received which relates to him without any deduction in
      respect of commission or remuneration for business introduction so that
      the amount so transferred shall be wholly applied in the defined
      contribution account for and in respect of the Transferring Employee
      Member.

5     ADDITIONAL VOLUNTARY CONTRIBUTIONS

      Any additional voluntary contributions paid to the Rank Plan to provide
      benefits of a money purchase nature (or any investments property or assets
      deriving therefrom or into which the same have been transposed) and the
      benefits payable in respect thereof shall be disregarded in calculating
      the Plan Transfer Amount and the Vendor will use all reasonable endeavours
      to procure that on the Payment Date such contributions investments
      property or assets (to the extent attributable to Transferring Employee
      Members) shall be paid over or assigned as the case may be (together with
      accumulated interest or bonuses thereon) to the Purchaser's Scheme for the
      benefit of thc Transferring Employee Members concerned. The Vendor shall
      procure that the Rank Plan Trustee shall certify to the trustees or
      managers of the Purchaser's Scheme how much (if any) of the amount of
      assets transferred derives from voluntary contributions paid by the
      Transferring Employee Members.

6     ENCOURAGEMENT OF CLAIMS

      The Purchaser undertakes not to assist or encourage directly or indirectly
      any person in any claim that the Rank Plan or Rank Scheme should pay a
      greater amount to the Purchaser's Scheme than the Plan Transfer Amount or
      the Scheme Transfer Amount.

                                     PAGE 85

<PAGE>

7     CO-OPERATION

7.1   The Purchaser and the Vendor undertake to co-operate in making any
      necessary submissions to the Board of Inland Revenue and executing all
      documents that are necessary in this connection.

7.2   The Vendor and the Purchaser undertake to each other to provide the other
      of them or their advisers promptly with all such information as the other
      of them or their advisers may reasonably require in connection with
      Employee Members and the due implementation of this Schedule and that all
      such information will be true, complete in all material respects and
      fairly presented.

                                     PAGE 86

<PAGE>

SIGNED by RANK HOLIDAYS DIVISION LIMITED )
acting by Pinal Nicum                    )  PINAL NICUM
its duly appointed attorney              )

SIGNED by PHILIP MASON                   )
duly authorised for and on behalf of -   ) PHILIP MASON
GRAND HOTEL GROUP LIMITED                )

                                              PAGE 87

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