Document:

LIMITED LIABILITY COMPANY

                                    AGREEMENT

                                       OF

                               THE TETON CLUB, LLC

<PAGE>

<TABLE>
<CAPTION>

                                TABLE OF CONTENTS

                                                                                                               Page
<S>      <C>     <C>                                                                                             <C>
ARTICLE I         ORGANIZATION OF THE COMPANY.....................................................................1
         1.1      Formation.......................................................................................1
         1.2      Name............................................................................................1
         1.3      Continuation and Term...........................................................................1
         1.4      Purpose.........................................................................................1
         1.5      Offices.........................................................................................1

ARTICLE II        DEFINITIONS.....................................................................................2

ARTICLE III       MANAGEMENT AND OPERATION OF THE PROJECT
                  AND THE COMPANY.................................................................................7
         3.1      Responsibilities and Duties of RRI under the Development Plan...................................7
         3.2      Management of the Project.......................................................................8
         3.3      Matters Requiring Approval of the Members......................................................11
         3.4      Duties on Sale.................................................................................13
         3.5      Reliance by Third Parties......................................................................13
         3.6      Compensation and Reimbursement of Members......................................................13
         3.7      Outside Activities; Conflicts..................................................................14
         3.8      Contracts with Members, Affiliates and Third Parties...........................................14
         3.9      Management Fee.................................................................................14
         3.10     Indemnification................................................................................15
         3.11     Other Matters..................................................................................16

ARTICLE IV        MEMBERSHIP INTERESTS, CAPITAL CONTRIBUTIONS,
                  DEFICIT LOANS AND OTHER OBLIGATIONS............................................................16
         4.1      Membership Interests...........................................................................16
         4.2      Capital Contributions..........................................................................16
         4.3      Capital Accounts...............................................................................18
         4.4      Interest.......................................................................................18
         4.5      No Withdrawal of Capital.......................................................................18

ARTICLE V         OTHER OBLIGATIONS OF THE MEMBERS...............................................................18
         5.1      Obligations of JHSC............................................................................18
         5.2      Obligations of RRI.............................................................................19
         5.3      Ownership of Intervals.........................................................................20

ARTICLE VI        DEVELOPER'S FEE................................................................................20

ARTICLE VII  DISTRIBUTIONS AND ALLOCATIONS.......................................................................20
         7.1      Income and Loss................................................................................20
         7.2      Tax Allocations................................................................................22

                                                                               -i-
<PAGE>
         7.3      Distribution of Net Cash Flow..................................................................23

ARTICLE VIII  EVENTS OF DEFAULT AND REMEDIES.....................................................................24
         8.1      Events of Default..............................................................................24
         8.2      Remedies.......................................................................................24
         8.3      Equitable Remedies.............................................................................24

ARTICLE IX        BOOKS, RECORDS AND ACCOUNTING..................................................................25
         9.1      Records and Accounting.........................................................................25
         9.2      Fiscal Year....................................................................................25

ARTICLE X         TAX MATTERS....................................................................................25
         10.1     Preparation of Tax Returns.....................................................................25
         10.2     Tax Elections..................................................................................25
         10.3     Tax Matters Partner............................................................................25
         10.4     Organizational Expenses........................................................................26
         10.5     Taxation as a Partnership......................................................................27

ARTICLE XI        TRANSFER OF INTERESTS..........................................................................27
         11.1     Transfer.......................................................................................27
         11.2     Transfer to Affiliate..........................................................................27
         11.3     Restrictions on Other Transfers................................................................27
         11.4     Right of First Refusal to Purchase Membership Interest.........................................27

ARTICLE XII  PURCHASE RIGHTS OF PARTNERS.........................................................................28
         12.1     Permitted Sale of Project......................................................................28
         12.2     Closing........................................................................................29
         12.3     Project Failure................................................................................29
         12.4     Indemnification................................................................................29

ARTICLE XIII  ADMISSION AND WITHDRAWAL OF MEMBERS................................................................29
         13.1     Admission of Members...........................................................................29
         13.2     Admission of Transferee Affiliate as Successor Member..........................................30
         13.3     Withdrawal of Members..........................................................................30
         13.4     Amendment of this Agreement....................................................................30

ARTICLE XIV  DISSOLUTION AND LIQUIDATION.........................................................................30
         14.1     Dissolution....................................................................................30
         14.2     Bankruptcy.....................................................................................31
         14.3     Liquidation....................................................................................31
         14.4     No Distribution in Kind........................................................................32
         14.5     Termination of Company.........................................................................32
         14.6     Return of Capital..............................................................................32

ARTICLE XV  AMENDMENT OF THIS AGREEMENT..........................................................................32

                                                                              -ii-
<PAGE>
ARTICLE XVI  GENERAL PROVISIONS..................................................................................32
         16.1     Addresses and Notices..........................................................................32
         16.2     Titles and Captions............................................................................33
         16.3     Pronouns and Plurals...........................................................................34
         16.4     Construction of Term "Includes.................................................................34
         16.5     Exhibits.......................................................................................34
         16.6     Further Action.................................................................................34
         16.7     Binding Effect.................................................................................34
         16.8     Integration....................................................................................34
         16.9     Creditors......................................................................................34
         16.10    Waiver.........................................................................................34
         16.11    Counterparts...................................................................................34
         16.12    Applicable Law.................................................................................34
         16.13    Invalidity of Provisions.......................................................................34
         16.14    Nature of Company Interest.....................................................................35
         16.15    Waiver of Partition............................................................................35

                                                                              -iii-
</TABLE>
<PAGE>

                       LIMITED LIABILITY COMPANY AGREEMENT
                                       OF
                               THE TETON CLUB, LLC

     This Limited Liability Company Agreement of The Teton Club, LLC is made and
entered  into by and between  Raintree  Resorts  International,  Inc.,  a Nevada
corporation  ("RRI") and JHSC  Properties,  Inc.,  a Wyoming  corporation  and a
wholly owned subsidiary of Jackson Hole Ski Corporation ("JHSC"), as the initial
Members  and any  additional  Persons  who  become  Members  of the  Company  in
accordance  with the  provisions  hereof.  In  consideration  of the  covenants,
conditions and agreements contained herein, the Members hereby agree as follows:

                                    ARTICLE I

                           ORGANIZATION OF THE COMPANY

     I.1   Formation. The Company is a limited liability company organized under
the  provisions  of the Delaware  Act. The  Certificate  has been filed with the
Secretary of State of the State of Delaware.  The parties to this  Agreement are
Members of the Company. The Company will be managed by its Members and no Member
shall be deemed to be a  "manager"  as such term is defined  under the  Delaware
Act.

     I.2   Name.  The name of the  Company  is, and the  business of the Company
shall be  conducted  under  the name of "The  Teton  Club,  LLC" The name of the
Company may be changed from time to time by amendment  of the  Certificate.  The
Company may  transact  business  under an assumed name by filing an assumed name
certificate in the manner prescribed by applicable law.

     I.3   Continuation  and Term.  The  Company was formed upon the filing with
the  Secretary  of State of the State of  Delaware  of the  Certificate  for the
Company.  The  Company  shall  continue  in  existence  until  the  close of the
Company's business on December 31, 2049, or until the earlier termination of the
Company pursuant to the provisions of this Agreement.

     I.4   Purpose.  The  Company  shall  develop and operate the Project on the
Land and sell Fractional  Ownership Intervals in accordance with the Development
Plan and take such other  actions as the Members  determine  may be necessary to
complete  the  Project.  The  Company  may engage in any other  lawful  business
permitted under the Delaware Act.

     I.5   Offices.  The  registered  office  of  the  Company  required  by the
Delaware Act to be  maintained  in the State of Delaware  shall be the office of
the initial  registered  agent  named in the  Certificate  or such other  office
(which  need not be a place of  business  of the  Company)  as the  Members  may
designate in the manner provided by law. The registered  agent of the Company in
the  State  of  Delaware  shall be the  initial  registered  agent  named in the
Certificate  or such other Person or Persons as the Members may designate in the
manner  provided by Law. The  principal  office of the Company shall be at 10000
Memorial Drive, Suite 480, Houston, Texas 77024 or such other

                                       1
<PAGE>

place as the Members may designate,  which need not be in the State of Delaware.
The Company may have such other offices as the Members may designate.

                                   ARTICLE II

                                   DEFINITIONS

     As used in this Agreement,  the following terms shall have the meanings set
forth below. A defined term has its defined  meaning  throughout  this Agreement
and in  each  exhibit,  attachment  and  schedule  attached  to  this  Agreement
regardless of whether it appears before or after the place where it is defined.

     "Accepting Member" is defined in Section 12.1.

     "Affiliate"  means (a) when used with  reference  to any  partnership,  any
partnership in which a Member  directly or indirectly owns or controls more than
50% of either the capital or profit interests of such partnership, (b) when used
with  reference to any  corporation  or other entity,  any  corporation or other
entity of which a Member, directly or indirectly, owns or controls more than 50%
of the  outstanding  voting rights of such  corporation  or other entity or is a
director,  officer or employee of such  corporation or other entity and (c) when
used with reference to any individual, any person that is a lineal descendant or
spouse of such individual or is a lineal descendant of such spouse or is a ward,
guardian,  employer or employee of such  individual or such spouse or is a trust
or estate in which such individual  owns a more than 50% beneficial  interest or
of which such individual serves as trustee, executor or in any similar capacity.
In addition,  the term "Affiliate,"when used with reference to any Person, shall
also  mean any  other  Person  that,  directly  or  indirectly,  controls  or is
controlled  by or is under  common  control  with  such  Person.  As used in the
preceding  sentence,  the term  "control"  means  the  possession,  directly  or
indirectly,  of the power to direct or cause  the  direction  of the  management
decisions and policies of the entity referred to, whether  through  ownership of
voting  securities,  by contract or otherwise,  and the terms  "controlling" and
"controls" shall have meanings correlative to the foregoing.

     "Agreement" means this Limited Liability  Company  Agreement,  as it may be
amended or restated from time to time.

     "Allocation  Regulations"  means Treas.  Reg.  SS1.704-1(b) et seq. as such
regulations may be amended and in effect from time to time and any corresponding
provisions of succeeding regulations.

     "Approve,""approved,""approval" or "approved by the Members or the Company"
means to approve or to have been  approved  expressly in writing by all Members,
which  writing  may  include  the duly  adopted  minutes  of any  meeting of the
Members, including action taken by unanimous consent without a meeting.

     "Assignee" is defined in Section 11.3.

                                       2
<PAGE>

          "Business Day" means any day, excluding Saturdays and Sundays, that is
     not a federal holiday.

          "Capital  Account" means the capital  account  maintained for a Member
     pursuant to Section 6.3 hereof.

          "Capital Contribution" means the cash or other property contributed to
     the Company pursuant to Section 4.2 hereof.

          "Certificate"  means the  Certificate of Formation of the Company,  as
     amended.

          "Closing Date" means the date on which the Loan is first funded.

          "Code"  means the  Internal  Revenue  Code of 1986,  as amended and in
     effect from time to time, and any successor to such statute.

          "Company" means The Teton Club, LLC.

          "Defaulting Member" is defined in Section 8.1.

          "Delaware Act" means the Delaware  Limited  Liability  Company Act, as
     amended.

          "Development  Plan"  means the plan of  development  of a  multi-story
     building on the Land,  substantially in the form attached hereto as Exhibit
     A, which  includes  (i) design plans for the  Project,  (ii) a  development
     budget for the  construction  phase of the Project  allocated  by specified
     categories,  (iii)  annual  operating  budgets  for the  Project  following
     completion of  construction  allocated by specified  categories  and (iv) a
     marketing plan for the marketing and sale of Fractional Ownership Intervals
     within  the  Project,  as the same may be  revised  from time to time.  The
     Development  Plan  will be  considered  complete  upon the sale of the last
     Fractional Ownership Interval originally owned by the Company.

          "Effective Date" means November 3, 1998.

          "Election Notice" is defined in Section 11.4.

          "Event of Default" is defined in Section 8.1.

          "Final Valuation" is defined in Section 4.2(b)(ii).

          "Fractional  Ownership  Interval"  means the exclusive  right to use a
     residential  unit of at least 1,400 square feet,  together with  associated
     amenities, for a period of at least three weeks per year.

          "Immediate  Family  Member" means an individual  and his or her spouse
     and their lineal descendants and the spouses of such lineal descendants.

                                       3
<PAGE>

          "Land" means the tract of land containing  approximately  2.0 acres in
     Teton  Village,  Teton  County,  Wyoming,  known as the "Site  H-2,"as more
     specifically  described on Exhibit B attached hereto, subject to matters of
     record and an  easement  to be  reserved  for ski tram use,  operation  and
     maintenance (including tree trimming) and for skiers to cross the Land from
     the ski tram easement,  which will be determined by a survey within 90 days
     from the date hereof.

          "Lender" means the Person or Persons providing the Loan.

          "Liquidator"  means the Person  designated  pursuant  to Section  14.3
     hereof.

          "Loan"  means the  construction  loan  referred to in Section 5.2, the
     proceeds of which will be used to fund the development of the Project.

          "Member" means RRI or JHSC and "Members" means RRI and JHSC.

          "Membership Interest" means the interest of a Member in the Company.

          "Net Agreed  Value" means (a) in the case of any property  contributed
     to the  Company,  the fair  market  value of such  property  reduced by any
     indebtedness  either  assumed by the Company upon such  contribution  or to
     which such property is subject when  contributed and (b) in the case of any
     property distributed to a Member, the fair market value of such property at
     the time of such distribution reduced by any indebtedness either assumed by
     such Member upon such  distribution or to which such property is subject at
     the time of distribution.

          "Net Cash Flow" means, for any period, the amount by which (i) Project
     Revenues plus (a) amounts taken out of Reserves (whether or not used to pay
     Operating  Costs),  (b) net loan  proceeds  and (c)  Capital  Contributions
     during such period,  exceed (ii) Operating Costs, plus any amounts added to
     Reserves, during such period.

          "Net Income" means, for any taxable period, the excess, if any, of the
     Company's  items of income  and gain over the  Company's  items of loss and
     deduction  for  such  taxable  period,  as such  items  are  determined  in
     accordance with Section 4.3 hereof.

          "Net Loss" means, for any taxable period,  the excess,  if any, of the
     Company's  items of loss and deduction  over the Company's  items of income
     and  gain  for  such  taxable  period,  as such  items  are  determined  in
     accordance with Section 4.3 hereof.

          "Net Profit Interest" as of the date of this Agreement means (a) as to
     RRI, sixty percent (60%), and (b) as to JHSC, forty percent (40%).

          "Nonaccepting Member" is defined in Section 12.1.

          "Offering Member" is defined in Section 11.4.

                                       4
<PAGE>

          "Operating  Costs" means all cash  expenditures by or on behalf of the
     Company  in  accordance  with  the  Development  Plan,   including  without
     duplication  costs and expenses  incurred in the  operation of the Project,
     including, but not limited to, cost of sales, sales commissions,  operating
     expenses  (including  management fees pursuant to Section 3.9) and payments
     of principal and of interest  (including late charges or other penalties or
     fees not  arising  upon the  failure  to pay  when due such  principal  and
     interest if funds were  available to make such  payments on a timely basis)
     made in  satisfaction  of all current debts and liabilities of the Company,
     including the Loan and any principal  and/or interest owed to third parties
     related to the funding of  pre-development  costs, taxes (except taxes of a
     Member), insurance and maintenance and repairs.

          "Other Business Entity" is defined in Section 3.3(y).

          "Owners Association" is defined in Section 3.9.

          "Person"  means an individual or a corporation,  partnership,  limited
     liability company, trust, unincorporated organization, association or other
     entity.

          "Pre-Development Phase" means that period of time prior to the funding
     of the Loan and the start of construction of the Project, during which JHSC
     and RRI will work together on preliminary market analysis,  coordination of
     the design and engineering of the Project, development of the architectural
     plans and  specifications,  establishment of sales and marketing  programs,
     collateral,   locations  and  personnel,   establishment   of  theme  store
     locations, and other due diligence and pre-development  responsibilities as
     are necessary in order to develop the Project.

          "Project"  means the  development  of the Land in accordance  with the
     Development Plan.

          "Project Failure" is defined in Section 12.3.

          "Project Costs" means the total costs for developing and  constructing
     the Project,  including  any offsite  requirements  for  employee  housing,
     utilities,  roads,  drainage and the like,  except the cost or value of the
     Land, the cost of golf memberships and ski privileges and the amount of any
     financing fees and interest paid.

          "Project Offer" is defined in Section 12.1.

          "Project Offer Notice" is defined in Section 12.1.

          "Project Purchase Notice" is defined in Section 12.1.

          "Project  Revenues"  means all Company  cash  actually  received  from
     operations of the Company  (including  Project Sales Proceeds but excluding
     Capital Contributions and loan proceeds).

                                       5
<PAGE>

          "Project Sales Proceeds"  means proceeds  received by the Company from
     sales of Fractional Ownership Intervals in the Project.

          "Projected   Project  Sales  Proceeds"   means,  as  of  the  date  of
     determination  thereof,  actual Project Sales  Proceeds  accrued as of such
     date plus  projected  Project  Sales  Proceeds  for all  unsold  Fractional
     Ownership  Intervals in the Project,  such  determination  being subject to
     approval by the Members.

          "Purchasing Member" is defined in Section 11.4.

          "Recapture  Income"  means any gain  recognized  by the  Company  (but
     computed without regard to any adjustment required by Section 734 or 743 of
     the Code) upon the  disposition  of any  property  or assets of the Company
     that is not capital  gain  because such gain  represents  the  recapture of
     deductions previously taken for federal income tax purposes with respect to
     such property or assets.

          "Reserves"  means funds  retained out of gross receipts of the Company
     for working  capital and repairs as established by RRI in accordance with a
     budget approved by the Members.

          "Retail Space" is defined in Section 5.1.

          "Right of Refusal Purchase Price" is defined in Section 12.1.

          "Transferee  Affiliate"  means  (a) when used  with  reference  to any
     partnership,  any partnership in which a Member directly or indirectly owns
     or controls more than 50% of either the capital or profit interests of such
     partnership  and (b) when used with  reference to any  corporation or other
     entity,  any  corporation  or other  entity of which a Member,  directly or
     indirectly, owns or controls more than 50% of the outstanding voting rights
     of such entity. As used in the preceding sentence, the term "control" means
     the possession, directly or indirectly, of the power to direct or cause the
     direction of the management  decisions and policies of the entity  referred
     to,  whether  through  ownership  of  voting  securities,  by  contract  or
     otherwise,  and the terms  "controlling" and "controls" shall have meanings
     correlative to the foregoing.

          "Valuation Termination Date" is defined in Section 4.2(b)(i).

          "Winding-Up"  means the period during which the affairs of the Company
     are terminated and the liquidation and sale of the assets of the Company is
     accomplished, such process commencing when the Company is dissolved for any
     reason.

                                   ARTICLE III

                 MANAGEMENT AND OPERATION OF THE PROJECT AND THE
                                     COMPANY

                                       6
<PAGE>

     III.1   Responsibilities  and Duties of RRI under the Development Plan. RRI
shall manage and supervise the  construction  and completion of the Project,  as
well  as any  renovation,  improvement,  alteration  or  reconstruction  project
carried on by the Company  with  respect to the  Project.  Such  services  shall
include taking bids and negotiating  contracts with  contractors,  reviewing the
plans,   specifications   and  working   drawings  and  generally   supervising,
coordinating and managing the  construction  and completion of the Project.  RRI
shall carry out its duties in accordance  with (i) the  Development  Plan,  (ii)
good real property development practices and (iii) in all material respects, all
laws and in a diligent,  good and  workmanlike  manner and shall use  reasonable
efforts to employ,  engage and supervise  qualified Persons to assist RRI in the
construction  and completion of the Project in accordance  with the  Development
Plan. Without limiting the foregoing, RRI shall:

          (1) use all reasonable  efforts to implement the  Development  Plan as
     the same may be amended  or  modified  from time to time  after  review and
     approval by the  Members  using all  reasonable  efforts to ensure that the
     Development  Plan  calls  for and  the  Land is  developed  and  Fractional
     Ownership  Intervals are marketed in compliance  with all  requirements  of
     governmental authorities having jurisdiction of the Land;

          (2) prepare and present to the Members  quarterly (or at more frequent
     intervals as a Member shall  determine)  any changes or  amendments  to the
     Development  Plan  recommended by a Member and implement any changes to the
     Development Plan as may be approved by the Members;

          (3)  prepare  reasonably  detailed  operating  budgets  for review and
     approval  by  the  Members  and,  after  approval  thereof,  implement  the
     operating  budgets;  provided,  however,  in the event the Members  fail to
     approve  a  proposed  operating  budget  submitted  by RRI,  RRI  shall  be
     authorized  to continue the payment of debt service on  liabilities  of the
     Company,  payment of other  contractual or legal obligations of the Company
     which have been duly  authorized by the Members and  maintenance of Company
     properties and assets under the previously  approved operating budget until
     a new  operating  budget  is  approved  by  the  Members.  RRI  may  make a
     modification within the general parameter of categories within an operating
     budget,  e.g.,  change one line item in a category  to another  line in the
     same category,  provided such  modification in no event exceeds ten percent
     (10%) of such line item as long as the aggregate changes for all line items
     does not exceed  $10,000.00;  provided,  however,  RRI may expend  funds in
     excess of such  limitation  if such  expenditure  is  necessary  to pay any
     contractual  or legal  obligations  of the  Company  which  have  been duly
     authorized by the Members. Any modification in excess of such limitation on
     the line item  within a category  shall  require the consent of the Members
     unless authorized pursuant to the preceding sentence.  For the avoidance of
     doubt, cost savings from one line item may not be utilized for another line
     item without the consent of the Members  unless  authorized  in  accordance
     with this subparagraph;

          (4) execute  contracts,  agreements,  leases and other  documents,  by
     itself on behalf of the Company,  as may be authorized  in the  Development
     Plan or approved by the Members;

                                       7
<PAGE>

          (5) employ or engage Persons to assist in the business of the Company,
     including design  professionals  and consultants,  attorneys,  accountants,
     real restate  brokers and sales agents;  provided  that such  employment or
     engagement is within the scope of the  Development  Plan or such  retention
     and employment has been previously approved by the Members;

          (6) coordinate the work of the professionals and others throughout all
     phases of the Project from the commencement  thereof,  through marketing to
     the final completion;

          (7) bring to the notice of the Members  without delay any  substantial
     or material  difficulties  or problems  relating to the  development of the
     Project of which RRI becomes aware and which, in the reasonable  opinion of
     RRI, are likely to cause delay or increase  costs,  including any item that
     might reasonably cause the Company to require additional funds in excess of
     those available to the Company;

          (8) verify and pay all costs incurred in connection  with the Project,
     including  all  Operating  Costs,  and  insure  that  these  costs  are  in
     conformity with the Development Plan; and

          (9)  coordinate  the  sales  activities  for  the  Project,  involving
     offering  for sale all  available  Fractional  Ownership  Intervals  in the
     Project, in accordance with the Development Plan.

     III.2   Management  of the Project.  Subject to the terms and conditions of
this  Agreement,  RRI  shall  be  responsible  for  the  day-to-day  management,
maintenance and operation of the Project following completion of the Development
Plan,  and is authorized to take such steps as are necessary and  appropriate to
preserve and maintain, and provide for services to, the Project. RRI shall carry
out its duties in managing  the Project in  accordance  with (i)  customary  and
reasonable real property management practices and (ii) in all material respects,
all laws and in a diligent, good and workmanlike manner and shall use reasonable
efforts to employ,  engage and supervise  qualified Persons to assist RRI in the
management of the Project. Without limiting the foregoing, RRI shall perform, or
cause and  supervise  the  performance  of,  the duties set forth and as limited
below:

          (10) use of such  executive and  administrative  staff,  on a full- or
     part-time   basis,  as  may  be  reasonably   required  to  provide  proper
     supervision and management of the Project;

          (11) supervise the work of, and,  subject to Section 3.3(j),  hire and
     discharge,  employees of the Project,  using  reasonable care in hiring and
     discharging  such  employees.  Such  employees  shall include all employees
     reasonably  necessary for the marketing,  operation and  maintenance of the
     Project in a professional  manner.  All such employees shall be employed by
     the Company, but may, if determined by RRI in its reasonable discretion, be
     employed by RRI, its Affiliates or a third party hired by RRI;

          (12) such ordinary  maintenance and repairs to the Project as shall be
     required  by law and as shall be  necessary  to  maintain  the Project in a
     professional manner. In connection with such maintenance, RRI is authorized
     to  purchase  such  supplies  and to make  such  service  contracts  as are
     necessary and appropriate therefor;

                                       8
<PAGE>

          (13)  provide,  cause to be  provided,  or contract to have  provided,
     electricity,  gas, water,  telephone,  cleaning,  repairs,  maintenance and
     other similar  services,  to the extent such services are necessary for the
     proper maintenance of the Project in a professional manner and otherwise in
     accordance with the terms of this Agreement or are required to be furnished
     by the Company under any  agreement for the sale of a Fractional  Ownership
     Interval in the Project; provided, however, that all such services rendered
     shall be provided in a professional manner;

          (14) prepare and file,  or cause to be prepared  and filed,  when due,
     all reports  relating to the Project  required by law,  and, in  accordance
     with  Section  10.1,  federal,  state and local tax returns  required to be
     filed by or on behalf of the Company or any Member thereof;

          (15) notify the  Members,  promptly  after RRI  becomes  aware of such
     occurrence,  of any  substantial  damage  to the  Project  or any  material
     personal injury or substantial  property damage suffered or claimed to have
     been  suffered by any Person on or with respect to the  Project,  and about
     all summonses,  subpoenas and other like legal documents relating to actual
     or alleged liability of the Company, RRI or Persons employed by RRI (to the
     extent the same affect or are applicable to the Project, the Company or the
     performance  or  nonperformance  by RRI or  such  other  Persons  of  their
     obligations  relating  to the  Company  or  the  Project)  or the  Project,
     together with its recommendations with respect thereto;

          (16) notify the  Members  promptly of any  information  received  with
     respect  to  any  proposed   zoning  changes,   condemnation   proceedings,
     environmental  actions or laws,  requests for easements or sales  proposals
     and such other matters as shall require the  notification or consent of the
     Members pursuant to this Agreement;

          (17)  promptly  collect  all  monies  due from  owners  of  Fractional
     Ownership  Intervals  in the  Project  (including  but not limited to dues,
     maintenance and management  fees) and any sums otherwise due to the Company
     with  respect  to the  Project by  requesting,  demanding  (verbally  or in
     writing,  as RRI deems appropriate),  collecting,  receiving and receipting
     for all such charges and instituting  legal  proceedings in the name of the
     Company  at  law or in  equity  and at the  expense  of,  or as an  expense
     reimbursable by, the Company in the collection thereof and for the eviction
     of  owners of  Fractional  Ownership  Intervals  in the  Project  and other
     persons  from the  Project.  All  monies  received  for or on behalf of the
     Company  shall be and remain in the  property  of the  Company and shall be
     deposited in demand deposit  accounts to be established by RRI, one or more
     of which shall be deemed to be an operating account;

          (18) pay promptly  when due, and in any event before the date on which
     interest and/or any penalty becomes payable with respect thereto, all taxes
     on the Project; provided,  however, that, to the extent holders of deeds of
     trust or  mortgages  on the  Project  require the deposit by the Company of
     monies  with such  holders  so as to permit  such  holders  to pay taxes on
     behalf of the Company,  the obligation hereunder shall be to pay, when due,
     the required sum to such holder or holders in respect of such taxes;

          (19) make all necessary  disbursements  for payment of debt service in
     connection with the Loan;

                                       9
<PAGE>

          (20) use  reasonable  efforts to cause to be fulfilled,  performed and
     observed the Company's obligations under the Loan;

          (21)  maintain at the principal  office of the Company,  in accordance
     with the  provisions  hereof,  accurate and  complete  books and records in
     respect of the Project,  including cash receipt and  disbursement  journals
     reflecting  all sales of  Fractional  Ownership  Intervals  in the Project,
     maintenance fees and dues paid by owners of Fractional  Ownership Intervals
     in the Project and other income received,  all costs and expenses  incurred
     with  respect to the Project,  all bills  received and paid and any and all
     other disbursements made with respect to the Project.  The original copies,
     if  available,   or   photocopies   of  all  notices,   requests  or  other
     communications  or documents  received with respect to the Project shall be
     retained.  Such records shall be maintained on a current basis and shall be
     available for  examination by any Member at any time during normal business
     hours for a minimum  period of four (4) years.  All records  maintained  in
     connection with the Project shall be the property of the Company;

          (22) coordinate the performance of the Company's obligations under any
     agreement  for the sale of a Fractional  Ownership  Interval in the Project
     and enforce such owner's obligations thereunder; and

          (23) obtain and maintain all insurance relating to the Project.

          JHSC  shall  have  no  duties  or  obligations  with  respect  to  the
     day-to-day management of the Company,  except as provided in this Agreement
     or the  Development  Plan. RRI may only be removed from its position as the
     Member  responsible  for  day-to-day  operating  decisions  relating to the
     Project  (i)  upon  a  finding,  pursuant  to  the  process  set  forth  in
     Section 8.2  hereof, that RRI has been grossly negligent in the performance
     of, or has willfully  neglected its duties under,  this Agreement,  (ii) if
     RRI is in default under this Agreement  beyond the  applicable  cure period
     (if any),  except where such default  would not be  considered  material or
     (iii)  RRI  ceases  to  be a  Member.  RRI may  not  delegate  any  of  its
     responsibilities, rights or powers under this Agreement except as otherwise
     expressly provided herein.

     III.3   Matters  Requiring  Approval of the  Members.  Notwithstanding  the
provisions of Sections 3.1 and 3.2, the following  acts or powers of the Company
shall be exercised only with the unanimous consent of all the Members:

          (24) granting any lien or other  encumbrance  on the Land, the Project
     or other assets of the Company material to the operation of the business of
     the Company or the  development,  construction or management of the Project
     or agreeing to sell the Project in its entirety;

          (25)  agreeing  to pay any fee to any Member or any  Affiliate  of any
     Member, except as described in any agreement approved by all Members;

          (26)  admitting any  additional  Member or  substituting a Person as a
     Member, except as otherwise permitted in this Agreement;

                                       10
<PAGE>

          (27) selling the Project,  distributing the Project in kind or leasing
     any  portion  of the  Project or Land  other  than as  provided  for in the
     Development Plan;

          (28) selection or discharge of the architect or general contractor for
     the Project,  approving  architectural plans and specifications  related to
     the design and  construction of the Project,  approving the contractors who
     will  perform  material  portions  of the  construction  of the Project and
     approving the contracts of the architects and contractors;

          (29) requesting any change in the zoning of the Land;

          (30) changing the principal use of the Land in any material respect;

          (31) resolving any disputes concerning  boundaries of the Property and
     the rights of adjoining owners;

          (32) amending the Development Plan;

          (33) approving key personnel for accounting, management, construction,
     marketing  and  sales  positions  with the  Company,  including  a  project
     director and a hospitality director;

          (34) approving all  advertising  materials for the Project,  including
     sales and marketing brochures and any materials  containing the name and/or
     logo of "Jackson Hole."

          (35) causing the Company to make payments or  reimbursements  directly
     or  indirectly  to any Member for the purchase of goods or  performance  of
     services or for any other  purpose or  permitting or causing the Company to
     enter  into a  contract  with or to make  any  loan  to any  Member  or any
     Affiliate of a Member, except as otherwise explicitly provided herein;

          (36)  permitting  any  Member to  receive  any  third-party  rebate or
     give-up or permit any third party to participate in any reciprocal business
     arrangements  with any Member which would have the effect of increasing the
     aggregate  amounts  otherwise  permitted  to be paid or  reimbursed  to any
     Member;

          (37)  except as  otherwise  expressly  permitted  hereby,  causing the
     Company to invest in any program,  partnership,  joint venture or any other
     transaction  or  arrangement  in which any Member has a direct or  indirect
     material beneficial interest;

          (38)  permitting  the  Company  to  operate  in such  manner  as to be
     classified  as an  "investment  company"  for  purposes  of the  Investment
     Company Act of 1940, as amended;

          (39) extending the term of the Company;

                                       11
<PAGE>

          (40) doing any act in  contravention  of this Agreement or which would
     make it impossible to carry on the business of the Company;

          (41) confessing a judgment  against the Company in connection with any
     threatened or pending legal action;

          (42)  causing  the  Company to incur,  refinance,  renew or extend any
     material indebtedness, including the Loan;

          (43) approving,  except to the extent the actual terms of the Loan are
     approved in the Development  Plan, the Loan, the provisions of the Loan and
     all  Loan  documents;   provided,   however,   that  neither  Member  shall
     unreasonably withhold such approval;

          (44)  signing  any  material  amendment  to, or waiving  any  material
     condition of, any contract relating to the sale of the Project;

          (45)  distributing  or using the proceeds from the sale of the Project
     in any manner not consistent with Article VII hereof;

          (46) acquiring property or making capital improvements not approved in
     the Development Plan;

          (47) amending the Certificate;

          (48)  merging  or  consolidating  the  Company  with any  corporation,
     business trust or association,  real estate  investment  trust,  common-law
     trust,  or any other  incorporated  or  unincorporated  business entity (an
     "Other Business Entity");

          (49) converting to an Other Business Entity; or

          (50) amending this Agreement.

     III.4   Duties  on Sale.  Upon a  determination  by the Members to sell the
Project,  RRI shall use all reasonable  efforts to find a purchaser on the terms
required  and/or approved by the Members.  Such services shall include  offering
the Project for sale,  preparing  and  negotiating  all  contracts or agreements
relating  thereto and generally  coordinating all matters in connection with the
sale,  provided  that the  contracts  and  agreements  shall be subject to final
approval by JHSC.

     III.5   Reliance  by Third Parties.  Notwithstanding any other provision of
this  Agreement,  no Person  acting in good faith,  including  any  purchaser of
property from the Company or any other Person dealing with the Company, shall be
required  to look to the  application  of  proceeds  hereunder  or to verify any
representation  by RRI as to the  extent of the  interest  in the  assets of the
Company that RRI is entitled to encumber, sell or otherwise use. Any such lender
or purchaser shall be entitled to rely exclusively on the representations of RRI
as to its authority to enter into such financing or sale  arrangements and shall
be entitled to deal with RRI as if it were the sole party in

                                       12
<PAGE>

interest therein,  both legally and  beneficially.  In no event shall any Person
dealing with RRI or its representative  with respect to any business or property
of the  Company  be  obligated  to  ascertain  that the terms  hereof  have been
complied  with,  or to inquire into the  necessity or  expedience  of any act or
action of RRI or its representative.  Each contract,  agreement, deed, mortgage,
security agreement,  promissory note or other instrument or document executed by
RRI or its  representative  with  respect to any  business  or  property  of the
Company shall be conclusive evidence in favor of any and every Person relying in
good faith thereon or claiming  thereunder that (a) at the time of the execution
and  delivery  thereof  this  Agreement  was in full force and effect,  (b) such
instrument  or  document  was duly  executed  in  accordance  with the terms and
provisions of this  Agreement and is binding upon the Company and (c) RRI or its
representative  was duly authorized and empowered to execute and deliver any and
every such  instrument  or document  for and on behalf of the  Company.  Nothing
contained  in this  section  shall  reduce,  alter or affect  RRI's  duties  and
obligations under this Agreement to the Company or any Member.

     III.6   Compensation and Reimbursement of Members.

          (51)  Compensation.  A Member  shall not be  entitled  to receive  any
     compensation for serving as a Member except as otherwise set forth herein.

          (52)   Reimbursements.   Each  Member  shall  be  reimbursed  for  all
     reasonable  out-of-pocket expenses,  disbursements and advances incurred or
     made  by it  on  behalf  of  the  Company  to  the  extent  such  expenses,
     disbursements  or advances are consistent with the approved  budgets of the
     Project  contained in the Development Plan. The Company shall not reimburse
     any  Member  for  costs  incurred  by such  Member in  connection  with the
     negotiation and preparation of this Agreement.

     III.7   Outside Activities; Conflicts.

          RRI, JHSC, any Affiliate of either of them and any director,  officer,
     partner or employee of a Member or any Affiliate of either of them shall be
     entitled  to and  may  have  business  interests  and  engage  in  business
     activities in addition to those relating to the Company, including business
     interests and activities in direct competition with the Company,  for their
     own account and for the account of others  without  having or incurring any
     obligation  to offer any interest in such  businesses  or activities to the
     Company or any Member.  Notwithstanding the foregoing, until the earlier of
     (i) two  years  from  the date of this  Agreement  and  (ii)  such  time as
     seventy-five  percent (75%) of the  Fractional  Ownership  Intervals in the
     Project  have  been  sold,  the  Members  hereby  agree  that they will not
     undertake in Teton Village,  Wyoming,  by any other means, to develop other
     real  estate  projects  where  the  properties  being  sold  are  comprised
     principally of fractional ownership interests that entitle the purchaser to
     the  exclusive  right to use a residential  unit  containing at least 1,400
     square  feet for a period  of at  least  three  weeks  per  year,  it being
     understood that the foregoing  provision shall not restrict the development
     and sale by JHSC or RRI of  Fractional  Ownership  Intervals  of less  than
     three weeks, apartments or condominiums. Neither the Company nor any of the
     Members  shall  have  any  rights  by  virtue  of  this  Agreement  or  the
     partnership  relationship  created  hereby in any business  ventures of any
     such Person.

                                       13
<PAGE>
     III.8   Contracts with Members, Affiliates and Third Parties.

          (53) Unless approved by the Members  pursuant to Section 3.3, a Member
     may not itself,  nor may an Affiliate of a Member,  enter into an agreement
     to render services to the Company.  Any such services  rendered shall be on
     the terms  that are fair and  reasonable  to the other  Member and that are
     comparable to terms that would be charged by third parties.

          (54) Unless specifically approved pursuant to Section 3.3, a Member or
     any Affiliate  thereof shall not sell,  transfer or convey any property to,
     or purchase any property from, the Company, directly or indirectly,  except
     pursuant to a transaction the terms of which are fair and reasonable to the
     Company and comparable to terms that would be charged by third parties.

          (55) RRI may employ or contract  with an  unrelated  third party or an
     Affiliate of RRI or JHSC (subject to Section  3.8(a)) to perform any or all
     of  the  services  required  to  be  performed  by  RRI  pursuant  to  this
     Article III.  Any fees  payable  to such  Person to  perform  the  services
     described in this Section shall be payable by the Company.

     III.9   Management  Fee.  As  compensation  for  RRI's  project  management
services  described  above,  RRI shall  receive a fee equal to a 15% of the dues
paid by owners of  Fractional  Ownership  Intervals in the Project to the owners
association for the Project (the "Owners Association").  RRI shall contract with
JHSC or its Affiliates to provide certain of such property  management  services
(as determined by RRI) for which JHSC (or such Affiliate) will be compensated at
the  market  rate  received  by third  parties  for  providing  similar  project
management services in Teton County, Wyoming. Any expenses which are incurred by
RRI in  performing  the services  described in this Article III shall be paid by
the Company or, if paid by RRI,  reimbursed by the Company;  provided,  however,
that in no event  shall RRI be  reimbursed  for any  expenses  for  which  third
parties providing project management services are not being reimbursed under the
terms of standard project management  services  agreements being entered into in
Teton County, Wyoming.

     III.10   Indemnification.

          (56) A Member  shall not be liable to the Company or any other  Member
     for any act or omission  performed in good faith and in  accordance  in all
     material  respects with the provisions of this Agreement  based upon errors
     of judgment or other fault in  connection  with the  business or affairs of
     the  Company  if the  Member's  conduct  shall not have  constituted  gross
     negligence or willful neglect or misconduct.

          (57) To the  fullest  extent  permitted  by law,  each Member (for all
     purposes of this Section  3.10(b) and Section  3.10(c),  the term  "Member"
     shall include the officers,  directors,  employees, agents and stockholders
     of a Member) shall be indemnified and held harmless by the Company from and
     against any and all losses, claims, damages,  settlements and other amounts
     (collectively,  "Losses')  arising  from  any  and  all  claims  (including
     attorneys'  fees and  expenses,  as such fees and expenses  are  incurred),
     demands, actions, suits or proceedings (civil, criminal,  administrative or
     investigative),  in which it may be involved,  as a party or otherwise,  by
     reason of the  management  of the affairs of the Company  performed in good
     faith and in accordance in all

                                       14
<PAGE>
     material respects with the provisions of this Agreement,  whether or not it
     continued  to be a Member or involved in  management  of the affairs of the
     Company at the time any such  liability  or  expense  is paid or  incurred;
     provided   that  the  Member  shall  not  be  entitled  to  the   foregoing
     indemnification if a court of competent  jurisdiction shall have determined
     that such Losses  resulted  primarily from the gross  negligence or willful
     neglect or misconduct of such Member.  The  termination  of a proceeding by
     judgment,  order, settlement or conviction under a plea of nolo contendere,
     or its equivalent,  shall not, of itself,  create any presumption that such
     Losses resulted  primarily from the gross  negligence or willful neglect or
     misconduct of the Member or that the conduct  giving rise to such liability
     was not in the  best  interest  of the  Company.  The  Company  shall  also
     indemnify  a  Member  who was or is a party or is  threatened  to be made a
     party to any threatened,  pending or completed action by or in the right of
     the  Company to procure a judgment  in its favor by reason of the fact that
     such Member is or was an agent of the Company,  against any Losses incurred
     by such Member in connection with the defense or settlement of such action;
     provided that no Member shall be entitled to the foregoing  indemnification
     if a court of competent  jurisdiction  shall have  determined that any such
     Losses resulted from the gross  negligence or willful neglect or misconduct
     of such Member or a material  breach of this Agreement by such Member.  The
     Company may advance the Member any expenses (including, without limitation,
     attorneys' fees and expenses)  incurred as a result of any demand,  action,
     suit or proceeding  referred to in this paragraph (b) provided that (i) the
     legal action relates to the performance of duties or services by the Member
     on  behalf  of  the  Company;  and  (ii)  the  Member  provides  a  written
     undertaking  to repay to the Company  the  amounts of such  advances in the
     event that the Member is determined  to be not entitled to  indemnification
     hereunder.

          (58) The  indemnification  provided by  paragraph  (b) of this section
     shall not be deemed to be  exclusive  of any other rights to which a Member
     may be  entitled  under any  agreement,  as a matter  of law,  in equity or
     otherwise,  and shall  continue  as to a Member  who has  ceased to have an
     official  capacity and shall inure to the benefit of the heirs,  successors
     and administrators of the Member.

          (59) Any indemnification pursuant to this Section 3.10 will be payable
     only from the assets of the Company.

     III.11   Other  Matters.  Subject to the duties  prescribed in Sections 3.1
and 3.2, whenever in this Agreement or any other agreement contemplated herein a
Member is  permitted or required to make a decision in its "good faith" or under
another  express  standard,  such Member  shall be subject to only such  express
standard and shall not be subject to any other or different standards imposed by
this Agreement or any other agreement contemplated herein.

                                   ARTICLE IV

                  MEMBERSHIP INTERESTS, CAPITAL CONTRIBUTIONS,
                       DEFICIT LOANS AND OTHER OBLIGATIONS

     IV.1   Membership  Interests. The Membership Interests of the Company shall
initially  be of one class,  which  shall be  referred  to herein as  Membership
Interests. Except as may otherwise be

                                       15
<PAGE>
required by law, no Membership  Interest shall have any preferences or relative,
participating,  optional or special rights,  other than those  specifically  set
forth herein (as such may be amended from time to time).

     IV.2   Capital Contributions.  The Members shall contribute to the Company,
in exchange for their respective Membership Interests, the following amounts:

          (60) RRI. RRI shall be responsible  for the first One Million  Dollars
     ($1,000,000) in cash of costs during the Pre-Development  Phase. The amount
     of these costs actually paid by RRI in accordance with the Development Plan
     will serve as RRI's initial Capital Contribution.

          (61) JHSC.

                                       16
<PAGE>

               (1) As its initial Capital Contribution, JHSC shall contribute to
          the Company the Land.  The parties  agree that the Net Agreed Value of
          the Land at any date of  determination  for purposes of this Agreement
          is equal to 7.5% of Projected  Project Sales  Proceeds as of such date
          of determination.

               Further,  the parties  agree that the Net Agreed  Value of JHSC's
          Capital  Contribution  shall be adjusted  at the end of each  calendar
          quarter  of the  Company to reflect  any change in  Projected  Project
          Sales Proceeds  during that quarter.  Such  adjustments  shall be made
          each calendar  quarter until such time as JHSC shall have received all
          distributions  due it  pursuant  to  Section  7.3(c)  (the  "Valuation
          Termination Date"). Any increase or decrease in Net Agreed Value shall
          affect the calculation of preferred returns pursuant to Section 7.3(c)
          only from the end of the last calendar quarter of the Company.

               (2) When the final Fractional  Ownership  Interval in the Project
          is sold, the Net Agreed Value of JHSC's Capital  Contribution shall be
          adjusted  to  reflect  the  valuation  of the  Land at 7.5% of  actual
          Project Sales  Proceeds (the "Final  Valuation").  If on the Valuation
          Termination  Date,  use of the Final  Valuation at all relevant  times
          would have  resulted in an increase in the amount of preferred  return
          to JHSC  pursuant to Section  7.3(c),  then any  distribution  to JHSC
          pursuant to Section  7.3(e) shall be  increased by such amount.  If on
          the  Valuation  Termination  Date,  use of the Final  Valuation at all
          relevant  times  would have  resulted  in a decrease  in the amount of
          preferred  return  to  JHSC  pursuant  to  Section  7.3(c),  then  any
          distribution  to JHSC pursuant to Section 7.3(e) shall be decreased by
          such amount.

          (62) Additional  Equity  Contributions--Pre-Development  Phase. In the
     event  the  Members  agree  that  the  Company,  at  any  time  during  the
     Pre-Development  Phase,  requires funds in excess of RRI's initial  Capital
     Contribution  pursuant to Section 4.2(a), any such funds, together with any
     additional  equity required by the Lender as a condition of the Loan, shall
     be  funded  in  equal  amounts  by  RRI  and  JHSC  as  additional  Capital
     Contributions.  To the extent an amount of permissible  additional  Capital
     Contributions  is included in the  Development  Plan,  the Members shall be
     deemed to have agreed to fund such amounts equally and no further agreement
     by the  Members  shall be  required.  RRI  shall  give  notice  of any such
     additional Capital  Contribution to each Member, which notice shall specify
     in  reasonable  detail the purposes for which any such  additional  Capital
     Contributions  are to be used. Each Member  unconditionally  agrees to make
     any such additional Capital  Contribution on or following the 15th Business
     Day following the date on which such notice is mailed.  The  obligations of
     the Members to make  additional  Capital  Contributions  as provided herein
     shall not inure to the benefit of, or be  enforceable  by, any Person other
     than the Company and the other Member.

          (63) Other Additional Equity Contributions.  In the event the Company,
     at any time after the  Pre-Development  Phase,  requires funds in excess of
     the funds otherwise  available to the Company  (including Project Revenues,
     cash  receipts  from  whatever  source  derived,   all  Reserves,   Capital
     Contributions  made by the Members and  proceeds  available  to the Company
     pursuant  to  the  Loan)  to  pay  Operating  Costs,   then  or  reasonably
     anticipated thereafter to become due and owing within thirty (30) days, RRI
     shall be obligated to make additional Capital Contributions in such

                                       17
<PAGE>
     amounts as are,  from time to time,  required  to permit the Company to pay
     such  Operating  Costs.  The obligation of RRI to make  additional  Capital
     Contributions  as provided  herein shall not inure to the benefit of, or be
     enforceable  by, any Person  other than the Company  and the other  Member.
     JHSC  may,  but  shall  not  be  obligated  to,  make  additional   Capital
     Contributions  to the  Company  on the same terms and  conditions  as shall
     apply to RRI.

     IV.3   Capital  Accounts.  The  Company  shall  maintain  for each Member a
separate  Capital  Account.  Such Capital  Account shall be increased by (i) the
cash amount or Net Agreed Value of all Capital Contributions made by such Member
and (ii) all items of Company  income and gain computed in accordance  with this
Section 4.3 and allocated to such Member  pursuant to Section 7.1  hereof.  Such
Capital Account shall be decreased by (x) the cash amount or Net Agreed Value of
all actual and deemed  distributions  of cash or  property  made to such  Member
pursuant to Sections 7.3(a),  (c), (d) or (e), 14.3 or 14.4 and (y) all items of
Company  deduction  and  loss  computed  as  provided  in this  Section 4.3  and
allocated  to such  Member  pursuant  to Section  7.1  hereof.  For  purposes of
computing  the  amount  of any item of  income,  gain,  deduction  or loss to be
reflected in the Members' Capital Accounts,  the determination,  recognition and
classification  of any  such  item  shall  be  the  same  as its  determination,
recognition and  classification  for federal income tax purposes  (including any
method of  depreciation,  cost recovery or  amortization  used for this purpose)
subject  to such  adjustments  or other  methodologies  as may be  permitted  or
required  by the  Allocation  Regulations  as  interpreted  and  applied by RRI,
subject  to the  approval  of JHSC.  It is the  intent of the  Members  that the
Capital  Accounts of the Members shall be  maintained in accordance  with and as
provided in the Allocation Regulations.

     IV.4   Interest.  No  interest  shall  be paid by the  Company  on  Capital
Contributions or on balances in Capital Accounts.

     IV.5   No  Withdrawal  of Capital.  No Member shall be entitled to withdraw
any part of its Capital  Contribution  or its Capital  Account or to receive any
distribution from the Company, except as provided in Sections 7.3 and 7.4 hereof
and Article XV.

                                    ARTICLE V

                        OTHER OBLIGATIONS OF THE MEMBERS

     V.1   Obligations of JHSC. JHSC will contribute to the Project, at a charge
equal to $42,000 per each  residential  unit in the Project,  two ski passes per
each residential  unit in the Project.  The cost of the ski passes for each unit
will be allocated among each Fractional  Ownership Interval associated with such
unit.  Payment for the allocated  cost of the ski passes will be due and payable
to JHSC upon the closing of the sale of each Fractional  Ownership Interval.  In
addition,  the Owners  Association  will be charged an annual fee of $95,000 for
each year, increased or decreased by a percentage equal to the annual percentage
change,  after 1999,  in the price of a one-day ski lift pass in Teton  Village,
Wyoming,  such fee to be  allocated  among the  owners of  Fractional  Ownership
Intervals.  The ski  passes are to be made  available  to the owner of record of
each Fractional  Ownership  Interval and/or their Immediate Family Members while
they are in residence

                                       18
<PAGE>
within the Project.  On an annual basis,  the  designated ski pass users will be
identified by the owner of the Fractional  Ownership Interval.  These ski passes
will not be  transferable  to  anyone  other  than the  owners  of record of the
Fractional  Ownership  Interval or their  Immediate  Family  Members;  provided,
however, the interval use of ski passes will be transferred upon the transfer of
the Fractional  Ownership  Interval to the new owner of record upon payment of a
transfer fee of $1,000 to JHSC. The Company will  administer and account for the
ski pass  distribution,  which may be  audited by JHSC.  The ski passes  will be
valid for a period of the earlier of 40 years from the initial  purchase date of
a Fractional Ownership Interval from the Company or January 1, 2045.

          During the Pre-Development  Phase of the Project,  JHSC will cooperate
     with  RRI to  determine  the  available  key  off-site  and  on-site  sales
     locations  and theme store  locations  around Teton Village and the town of
     Jackson,  Wyoming.  If the  preferred  locations are owned or controlled by
     JHSC,  then JHSC agrees to rent such locations to the Company at reasonable
     market rates, on an as available  basis,  during the marketing phase of the
     Project or until January 1, 2001,  the use of which (except with respect to
     the theme  stores)  shall be  limited to the sale of  Fractional  Ownership
     Intervals.

          JHSC will make  available  to the Company  all mailing  lists and will
     allow for Project advertising in all JHSC corporate  mailings.  Any mailing
     lists will be the property of JHSC and cannot be used for any other purpose
     than marketing the Project. Such lists shall be maintained in confidence.

          Jackson Hole Realty shall be the primary  offsite real estate  company
     for purposes of selling  Fractional  Ownership  Intervals in the Project in
     accordance with the terms of a written agreement approved by the Members.

          It is  contemplated  by the  Members  that as part of the  Project,  a
     retail space of  approximately  2,000 square feet (the "Retail Space") will
     be built.  It is agreed by the Members that this Retail Space will be built
     at the  southeast  end of the main Project  building.  The exact  location,
     configuration  and use of the Retail Space will be mutually  determined  by
     the  Members,  it being  agreed  that  such use as a  restaurant  is hereby
     approved by the  Members.  JHSC shall have the right to purchase the Retail
     Space from the Company at a price equal to that  portion of the cost of the
     Land that is  proportionate  to the Land value  contribution  made by JHSC.
     Additionally,  JHSC  will pay for the  cost  directly  attributable  to the
     construction and development of the Retail Space, as well as any additional
     Project Costs that are directly attributable to the Retail Space.

     V.2   Obligations  of RRI. RRI will, upon completion of construction of the
Project,  place the Project in the Raintree  Owners  Club,  which will allow the
owners of Fractional Ownership Intervals in the Project exchange privileges with
other Raintree  Owners Club Resorts.  Exchange  privileges will be available and
provided  with respect to the existing  Raintree  Vacation  Club  properties  in
Mexico and Canada, which include the Club Regina and Whiskey Jack properties, as
well as any other Raintree  Vacation Club projects owned,  acquired or developed
in the United States, Canada or Mexico.

                                       19
<PAGE>
          RRI will attempt to obtain a  commitment  to make the Loan by a target
     date of  February  1,  1999;  however,  JHSC will  participate  in the Loan
     negotiations  and must  approve  the terms of the Loan.  To the  extent the
     terms of the Loan are within the  parameters  set forth in the  Development
     Plan and JHSC has  participated  in the Loan  negotiations,  JHSC  shall be
     deemed to have  agreed to the terms of the Loan and no further  approval by
     JHSC shall be  required.  If approval by JHSC is  required,  such  approval
     shall not be  unreasonably  withheld.  If necessary  and only to the extent
     necessary  to  procure  the  Loan  on  favorable  terms,  Raintree  Resorts
     International,  Inc.  will  provide a guarantee to the Lender in support of
     the Loan.  If there is  additional  capital  required  by the  Lender to be
     contributed to the Venture in excess of the initial Capital  Contributions,
     then such  additional  capital  will be  contributed  by RRI and JHSC on an
     equal basis in accordance with Section 4.2(c).  Subject to any restrictions
     in the Loan, any Capital  Contributions  may be repaid with the proceeds of
     the Loan.

     V.3   Ownership  of  Intervals.  Each  Member  shall be entitled to own one
five-week "gold" level Fractional  Ownership  Interval at such costs, if any, as
shall be agreed with the Owners Association.

                                   ARTICLE VI

                                 DEVELOPER'S FEE

          For  services  rendered  in  connection  with the  development  of the
     Project,  RRI and JHSC shall receive a Developer's  Fee to be paid from the
     proceeds  of the Loan in an  amount  equal to 4% and 1% of  Project  Costs,
     respectively.  To the extent the proceeds of the Loan are not sufficient to
     complete the Project and pay all of the  Developer's  Fees,  any  remaining
     amounts due shall be paid pursuant to the provisions of Article VII hereof.

                                   ARTICLE VII

                          DISTRIBUTIONS AND ALLOCATIONS

     VII.1   Income  and Loss. For purposes of maintaining the Capital  Accounts
and determining the rights of the Members among themselves,  after giving effect
to the special allocations set forth in Section 7.1(c), any remaining Net Income
or Net Loss for any taxable year (or portion  thereof) shall be allocated  among
the Members as follows:

          (64) Net Income.  For each  taxable  year of the  Company,  Net Income
     shall be allocated:

               (1)  First,  to  the  Members  in  proportion  to  the  aggregate
          distributions  made pursuant to Section 7.3(a) in  satisfaction of the
          preferred  return  contained  therein  until the  aggregate Net Income
          allocated to the Members  pursuant to this Section  7.1(a)(i)  for the
          current  and all  previous  taxable  years is  equal to the  aggregate
          distributions  made to the  Members  pursuant  to  Section  7.3(a)  in
          satisfaction of the preferred  return for the current and all previous
          taxable years;

                                       20
<PAGE>
               (2)  Second,  to the  Members  in  proportion  to  the  aggregate
          distributions  made pursuant to Section 7.3(c) until the aggregate Net
          Income  allocated to the Members  pursuant to this Section  7.1(a)(ii)
          for the  current  and all  previous  taxable  years  is  equal  to the
          aggregate distributions made to the Members pursuant to Section 7.3(c)
          for the current and all previous taxable years, and

               (3) Thereafter 60% to RRI and 40% to JHSC.

          (65) Net Loss. For each taxable year of the Company, Net Loss shall be
     allocated 60% to RRI and 40% to JHSC.

          (66) Required  Allocations.  Prior to making any allocations  provided
     above, the following required allocations shall be made:

               (1) Allocation  Regulations.  Items of Company income, gain, loss
          and deduction shall be allocated as necessary to cause the allocations
          provided in this Agreement to have economic effect or, with respect to
          nonrecourse  deductions,  to be  deemed to be in  accordance  with the
          Members'  interests  in the  Company,  as provided  in the  Allocation
          Regulations.   The  allocations  required  pursuant  to  this  Section
          7.1(c)(i) are intended to constitute a "qualified  income offset" and,
          if necessary, a "minimum gain chargeback" as such terms are defined in
          the Allocation Regulations.

               (2) Curative  Allocation.  The  allocations  set forth in Section
          7.1(c)(i) (the "Required Allocations") are intended to comply with the
          Allocation Regulations. Notwithstanding any other provision of Section
          7.1,  other than the Required  Allocations,  the Required  Allocations
          shall be taken into  account in  allocating  Net Income,  Net Loss and
          other items of income,  gain,  loss and deduction among the Members so
          that,  to the  extent  possible,  the net  amount of such items of Net
          Income,  Net Loss and other items of income,  gain, loss and deduction
          allocated  to each Member  pursuant to this  Article  VII,  when taken
          together,  shall be equal to the net  amount of such  items that would
          have been  allocated to each such Member had the Required  Allocations
          and the curative  allocations  provided in this Section 7.1(c)(ii) not
          otherwise been made.

               (3) Code Section 754 Adjustments.  To the extent an adjustment to
          the adjusted tax basis of any Company asset pursuant to Section 734(b)
          or  743(b)  of the  Code  is  required,  pursuant  to  the  Allocation
          Regulations, to be taken into account in determining Capital Accounts,
          the amount of such adjustment to the Capital Accounts shall be treated
          as an item of gain  (if the  adjustment  increases  the  basis  of the
          asset) or loss (if the adjustment decreases such basis), and such item
          of gain or loss  shall be  specially  allocated  to the  Members  in a
          manner  consistent with the manner in which their Capital Accounts are
          required to be adjusted pursuant to the Allocation Regulations.

          (67) Allocations  upon Winding-Up.  After giving effect to the special
     allocations set forth in Section 7.1(c), all items of Company income, gain,
     loss and  deduction  recognized  by

                                       21
<PAGE>
     the Company  during  Winding-Up  shall,  before  adjustment  of the Capital
     Accounts of the Members to reflect  distributions of amounts  available for
     distribution  pursuant to Section 14.3,  be allocated  among the Members in
     such a manner as to cause the balance in the Capital Account of each Member
     to be equal to the amount of cash such Member  would be entitled to receive
     if all  Company  assets  were  sold for an  amount  of cash  equal to their
     respective fair market values,  all Company  liabilities  were satisfied to
     the extent  required  by their  terms and all  remaining  Company  cash was
     distributed  to the Members in the order and  priority set forth in Section
     7.3.

     VII.2   Tax Allocations.

          (68) For federal income tax purposes,  except as otherwise provided in
     this  Section 7.2,  each item of income,  gain,  loss and  deduction of the
     Company shall be allocated  among the Members in accordance with the manner
     in which Net Income or Net Loss was allocated as provided in Section 7.1.

          (69) With respect to any property of the Company contributed or deemed
     contributed  at a time when there is a  variation  between  its fair market
     value  and its tax  basis,  RRI  shall  make  allocations  of  gain,  loss,
     depreciation  and cost recovery  deductions  attributable  to such property
     pursuant  to this  Section  7.2(b) and to make any  adjustments  to Capital
     Accounts  in  any  manner  consistent  with  Treasury   Regulation  Section
     1.704-3(c).

          (70) All items of  income,  gain,  loss,  deduction,  credit and basis
     allocation  recognized  by the Company for federal  income tax purposes and
     allocated to the Members in accordance with the provisions  hereof shall be
     determined  without  regard to any election  under  Section 754 of the Code
     that may be made by the Company; provided that such allocations, once made,
     shall be adjusted as  necessary  or  appropriate  to take into  account the
     adjustments  permitted  by  Sections  734 and 743 of the  Code  and,  where
     appropriate,   to  provide  only  Members   recognizing   gain  on  Company
     distributions  covered by Section 734 of the Code with the  federal  income
     tax  benefits  attributable  to the  increased  basis in  Company  property
     resulting from any election under Section 754 of the Code.

          (71) If any  Recapture  Income  results from the sale or other taxable
     disposition  of  a  Company  asset,  the  amount  of  any  gain  from  such
     disposition  allocated  to or  recognized  by a Member or its  successor in
     interest for federal income tax purposes pursuant to this Section 7.2 shall
     be deemed to be  Recapture  Income to the extent  that such Member has been
     allocated or has claimed any deduction  directly or indirectly  giving rise
     to the  treatment  of such  gain as  Recapture  Income.  (72)  Each item of
     Company  income,  gain,  loss and deduction  attributable  to a transferred
     Membership  Interest shall, for federal income tax purposes,  be determined
     on a monthly or other basis, as required or permitted by Section 706 of the
     Code and shall be allocated to the holder of such Membership Interest as of
     the close of business on the day  preceding  the first day of such month or
     other period;  provided that gain or loss on a sale or other disposition of
     all  or a  substantial  portion  of the  assets  of the  Company  shall  be
     allocated to the holder of the Membership Interest on the date of sale. RRI
     may revise,  alter or otherwise  modify such methods of  determination  and
     allocation as it deems necessary, to the extent permitted by Section 706 of
     the Code and regulations or rulings promulgated thereunder.

                                       22
<PAGE>

     VII.3   Distribution  of Net Cash Flow.  For each  calendar  quarter of the
Company, the Company shall distribute to the Members any Net Cash Flow available
at the end of such calendar  quarter,  not later than twenty (20) days after the
end of each such quarter, in the following order of priority:

          (73) First,  to the Members  pari passu in  proportion  to the amounts
     funded as additional Capital Contributions pursuant to Section 4.2(d), plus
     preferred returns thereon at the rate of 12% per annum; then

          (74) Second, if any amount of the Developer's Fees remains unpaid from
     the proceeds of the Loan or pursuant to this Section 7.3(b), 80% to RRI and
     20% to JHSC pari passu,  until each Member's  Developer's Fee has been paid
     in full,  with such  amounts  treated as  guaranteed  payments  pursuant to
     Section 707(c) of the Code; then

          (75) Third,  in a proportion  to be determined on the last day of such
     calendar quarter which will be determined by reference to the value of each
     Member's Capital  Contribution on that date in accordance with Section 4.2,
     to JHSC and RRI pari  passu,  until  cumulative  preferred  returns on each
     Member's  Capital  Contribution  at the  rate of 12% per  annum  have  been
     distributed  (taking into account the amounts of any preferred return which
     is distributed pursuant to Section 7.3(a)); then

          (76)  Fourth,  to JHSC and to RRI in  proportion  to the value of each
     Member's Capital  Contribution  determined on the last day of such calendar
     quarter in accordance with Section 4.2, until both parties have received an
     amount  equal to the value of their  Capital  Contributions  determined  in
     accordance with Section 4.2,  valued as of the date of such  determination;
     then

          (77) Fifth,  60% to RRI and 40% to JHSC, such amounts being subject to
     adjustment pursuant to Section 4.2(b), pari passu.

                                  ARTICLE VIII

                         EVENTS OF DEFAULT AND REMEDIES

     VIII.1   Events  of Default.  Any one or more of the following events shall
constitute an "Event of Default" under this Agreement:

          (78) If a Member (a "Defaulting Member") shall fail to pay, perform or
     comply with any obligation imposed upon it under this Agreement; or

          (79) If a  Member  (also a  "Defaulting  Member")  shall  fail to pay,
     perform or comply with any  material  obligation  imposed  upon such Member
     (rather  than the  Company)  by any  agreement  by which the Company or the
     Members  (in their  capacity  as such) may be bound;  and  thereafter,  the
     Defaulting Member shall fail to cure such failure to pay, perform or comply
     within

                                     23
<PAGE>
     thirty (30) calendar days after  receiving  written notice thereof from the
     other  Member,  or if  such  failure  shall  be  curable,  but of a  nature
     requiring  more than  thirty (30)  calendar  days and less than ninety (90)
     calendar days to cure, the Defaulting Member shall fail to commence to cure
     such  failure  within such thirty (30)  calendar  day period or  thereafter
     shall fail to continue to correct such failure with due diligence until the
     same has been corrected within ninety (90) calendar days.

     VIII.2   Remedies.  No party to this Agreement shall institute a proceeding
in any court or  administrative  agency to resolve a dispute  arising under this
Agreement  before that party has sought to resolve the  dispute  through  direct
negotiation  with the other  party.  If the dispute is not  resolved  within two
weeks  after a demand for  direct  negotiation,  the  parties  shall  attempt to
resolve the dispute through mediation. If the parties do not promptly agree on a
mediator,  the parties shall request that the Association of Attorney  Mediators
(or a body  serving a  similar  purpose)  in Teton  County,  Wyoming,  appoint a
mediator certified by the appropriate governing body of Wyoming. If the mediator
is unable to facilitate a settlement of the dispute  within a reasonable  period
of time,  as  determined  by the  mediator,  the mediator  shall issue a written
statement to the parties to that effect. Only then may a party to this Agreement
institute a proceeding in a court or with an administrative  agency to resolve a
dispute  arising  under  this  Agreement.  The  costs  and  expenses,  including
reasonable attorneys' fees, of the prevailing party in any dispute arising under
this Agreement will be promptly paid by the other party or parties.

     VIII.3   Equitable  Remedies. In the event of a breach or threatened breach
of this Agreement by any Member,  the remedy at law in favor of the other Member
will be  inadequate  and such other  Member,  in addition to all other  remedies
which may be available to it, and  notwithstanding  Section 8.2,  shall have the
right of specific  performance  in the event of any breach of the  Agreement  or
injunction in the event of any  threatened  breach of the Agreement by the other
Member.

                                   ARTICLE IX

                          BOOKS, RECORDS AND ACCOUNTING

     IX.1   Records  and  Accounting.  RRI shall keep or cause to be kept at the
principal  office of the Company such  records,  in addition to those  otherwise
required hereby, as are customary for a project such as the Project and for such
a company. The books of account of the Company shall be maintained in accordance
with the accrual method of accounting.

     IX.2   Fiscal  Year.  The fiscal year of the Company  shall be the calendar
year.

                                    ARTICLE X

                                   TAX MATTERS

     X.1   Preparation of Tax Returns. RRI shall arrange for the preparation and
timely filing of all returns of Company income,  gains,  deductions,  losses and
other  items  necessary  for  federal and state  income tax  purposes  and shall
furnish to the Members  such tax  information  as it

                                       24
<PAGE>
determines  is  reasonably  required for federal and state income tax  reporting
purposes.  On a timely basis, JHSC shall review and either approve or comment on
all tax returns  prior to their  filing.  The  classification,  realization  and
recognition of income,  gain,  losses and deductions and other items shall be on
the accrual method of accounting  for federal  income tax purposes.  The taxable
year of the Company shall be the calendar year.

     X.2   Tax Elections.  The Members shall determine whether to make or revoke
any available election under the Code.

     X.3   Tax Matters Partner.

          (80) RRI  shall be the Tax  Matters  Partner  ("TMP")  as  defined  in
     Section  6231(a)(7)  of the Code.  If RRI shall cease to be a Member,  then
     JHSC shall act as the Tax Matters Partner.  Except as expressly  authorized
     by this  Agreement,  the TMP shall not make any decision or take any action
     without the prior  authorization of the other Members.  The TMP shall cause
     each other Member to be treated as a "notice partner" within the meaning of
     Section 6231(a)(8) of the Code. The TMP shall notify each Member regarding,
     and  each  Member  shall  have  the  right  to  participate   in,  (i)  any
     administrative proceeding relating to the determination of Company items at
     the  Company  level  and (ii) any  discussions  with the  Internal  Revenue
     Service relating to any Company related tax matters.  In addition,  the TMP
     shall provide any Member which so requests  with copies of  correspondence,
     work papers,  documents or such other  relevant tax related  information as
     such Member  reasonably  may request.  The TMP shall from time to time upon
     request of any other Member confer, and cause the Company's accountants and
     tax  attorneys  to confer,  with such other  Member and its  attorneys  and
     accountants  on any  matters  relating  to a Company  tax  item,  return or
     election.

          (81) The TMP shall not,  except  with the prior  approval of the other
     Members,  (i) initiate any action or proceeding or file any pleading,  (ii)
     compromise or settle any issue, (iii) extend any statute of limitations, or
     (iv) take any action contemplated by Sections 6222 through 6232 of the Code
     or any other action which may be legally binding on any other Member or the
     Company.

          (82) No Member  shall file,  pursuant to Section  6227 of the Code,  a
     request  for  administrative  adjustment  of Company  items for any Company
     taxable  year  without  first  notifying  all other  Members.  If all other
     Members agree with the requested adjustment, the TMP shall file the request
     for  administrative  adjustment  on behalf  of the  Company.  If  unanimous
     consent is not obtained  within 30 days,  or within the period  required to
     timely file the request for administrative adjustment, if shorter, then any
     Member, including the TMP, may file a request for administrative adjustment
     on its own behalf.

          (83) Any Member  intending  to file a petition  under  Sections  6226,
     6228,  or  other  sections  of the Code  with  respect  to any tax  matters
     involving the Company, shall notify the other Members of such intention and
     the  nature  of  the  contemplated  proceeding.  If the  TMP is the  Member
     intending  to file  such  petition,  such  notice  shall be given  within a
     reasonable  time to allow the other Members to  participate in the choosing
     of the forum in which such  petition will be filed.  If the Members  cannot
     agree  unanimously on the appropriate  forum, then the TMP shall choose the

                                       25
<PAGE>
     forum. If any Member intends to seek review of any court decision  rendered
     as a result of a proceeding instituted under this Section 10.3, such Member
     shall first notify the other Members in writing of such intended action.

          (84) Any Member which enters into a settlement  agreement with respect
     to any Company items, as defined by Section  6231(a)(3) of the Code,  shall
     notify the other Members of such settlement  agreement and its terms within
     90 days from the date of settlement.

          (85) The TMP shall not  engage  on  behalf  of the  Company  any legal
     counsel,  certified  public  accountants  or other  consultants or advisors
     without  the prior  approval  of the other  Members.  Any Member may engage
     legal counsel, certified public accountants, or others in its own behalf at
     its sole cost and expense.

          (86) The provisions of this Section 10.3 shall survive the termination
     of the  Company or the  termination  of any  Member's  Interest,  and shall
     remain  binding on the  Members for a period of time  necessary  to resolve
     with the Internal Revenue Service any and all matters regarding the federal
     income taxation of the Company for any open tax year or years.

     X.4   Organizational  Expenses.  The Company shall elect to deduct expenses
incurred in organizing the Company ratably over a 60-month period as provided in
Section 709 of the Code.

     X.5   Taxation  as a Partnership.  No election shall be made by the Company
or any Member for the Company to be excluded from the  application of any of the
provisions  of  Subchapter  K,  Chapter 1 of  Subtitle A of the Code or from any
similar provisions of any state tax laws.

                                   ARTICLE XI

                              TRANSFER OF INTERESTS

     XI.1   Transfer.

          (87) The term "transfer," when used in this Article XI with respect to
     a Membership Interest, shall be deemed to refer to a transaction by which a
     Member  assigns its  Membership  Interest to another  Person and includes a
     sale,  assignment,  gift,  pledge,  encumbrance,  hypothecation,  mortgage,
     exchange and any other disposition.

          (88) No Membership Interest shall be transferred, in whole or in part,
     except  in  accordance  with the  terms  and  conditions  set forth in this
     Article XI. Any transfer or purported  transfer of any Membership  Interest
     not made in accordance with this Article XI shall be null and void.

     XI.2   Transfer  to  Affiliate.  A Member  may,  after  notice to the other
Members,  transfer  all or any part of its  Membership  Interest to a Transferee
Affiliate on such terms as such Member, in its sole discretion, shall determine;
provided,  however,  that the  Transferee  Affiliate  is managed by

                                       26
<PAGE>
persons with experience and knowledge comparable to the officers of such Member.
Such  Transferee  Affiliate  shall be  admitted  to the  Company  as a Member as
provided in Section 13.2.

     XI.3   Restrictions  on Other Transfers.  Subject to Section 11.4, a Member
or permitted transferee of a Member shall not, directly or indirectly (including
a transfer of stock or other  interests),  sell,  assign,  pledge or encumber or
otherwise  transfer  its  Membership  Interest to another  Person,  other than a
Transferee Affiliate ("Assignee"),  without the prior express written consent of
the other  Member.  If the  Assignee is not  already a Member,  it will become a
Member of the  respective  class in the  Company  entitled to all the rights and
benefits under this Agreement only if the  non-transferring  Members  consent to
the  assignment,  which  consent or approval  may be  withheld  in the  absolute
discretion  of such  Members.  An  Assignee  who is not a Member  shall  only be
entitled to distributions to which the assignor would be entitled.

     XI.4   Right of First Refusal to Purchase Membership Interest.

          (89)  Members'  Right of First  Refusal.  At any time after four years
     from the date of this  Agreement,  if any Member  (the  "Offering  Member")
     shall  propose  to sell its  Membership  Interest,  it shall give the other
     Member  (the   "Purchasing   Member")  written  notice  of  its  intention,
     describing the price and terms upon which the Offering  Member  proposes to
     sell or otherwise transfer the same, with such price and terms supported by
     a written bona fide offer of a third party which is not an Affiliate of the
     Offering  Member.  The  Purchasing  Member shall then have 10 Business Days
     from the date of receipt of any such  notice to agree by written  notice to
     the Offering  Member (the  "Election  Notice") to purchase such  Membership
     Interest for the price and upon the terms specified in the notice by giving
     written notice to the Offering  Member.  Any sale to the Purchasing  Member
     pursuant to an exercise of its right of first  refusal  under this  Section
     11.4 shall be consummated within 20 Business Days following the 10 Business
     Day notice period referred to above in this Section 11.4.

          (90) Sale to Third Parties.  To the extent the Purchasing Member fails
     to  exercise in full the right of first  refusal  under this  Section  11.4
     within the 10 Business Day period provided in Section 11.4(a), the Offering
     Member shall have 90 days thereafter to sell the Membership Interest at the
     price and upon terms no more  favorable to the purchasers of the Membership
     Interest than specified in the Offering  Member's notice.  In the event the
     Offering  Member has not sold the  Membership  Interest  within said 90 day
     period,  the  Offering  Member  shall not  thereafter  sell the  Membership
     Interest without again first offering the Membership Interest in the manner
     provided in this Section 11.4.

                                   ARTICLE XII

                           PURCHASE RIGHTS OF PARTNERS

     XII.1   Permitted Sale of Project. In the event the Company receives a bona
fide third party offer (the "Project Offer") to purchase the Project,  RRI shall
notify the other  Member  (the  "Project  Offer  Notice") of the receipt of such
Project  Offer as soon as  reasonably  practical  following  the  receipt of the
Project  Offer,  which  Project Offer Notice shall contain a copy of the Project
Offer and

                                       27
<PAGE>
a summary of the terms and  conditions of the Project  Offer.  In the event that
one Member (the "Accepting  Member") desires to accept but the other Member (the
"Nonaccepting  Member")  does not  desire  to  accept  the  Project  Offer,  the
Nonaccepting Member shall have the right, within ten (10) days of receipt of the
Project  Offer  Notice,  to purchase the  Membership  Interest of the  Accepting
Member.  The Nonaccepting  Member shall exercise such right by delivering to the
Accepting  Member a written notice (the "Project  Purchase  Notice") stating its
intent  to  purchase  the  Membership  Interest  of the  Accepting  Member.  The
Accepting Member shall sell its Membership  Interest to the Nonaccepting  Member
for  the  Purchase  Price  determined  as set  forth  below.  The  price  of the
Membership  Interest of the  Accepting  Member  (the "Right of Refusal  Purchase
Price")  shall be equal to the amount that the  Accepting  Member would  receive
from the  Company if the  Company  was  liquidated,  the Project was sold for an
amount of cash and other terms of payment  equal to the  purchase  price for the
Project  set forth in the  Project  Offer,  the deemed  income,  gain,  loss and
deduction  resulting  from such deemed sale was  allocated  in  accordance  with
Section  7.1(d) hereof and all of the Company's  liabilities  were satisfied and
its remaining assets  distributed to the Members in accordance with Section 14.3
of this Agreement.  The closing of the sale of the Accepting Member's Membership
Interest  shall occur as provided in Section  12.2. If the  Nonaccepting  Member
does not exercise its right to purchase the Membership Interest of the Accepting
Member within the ten (10) day period following the receipt of the Project Offer
Notice,  RRI shall  accept the Project  Offer and endeavor in good faith to sell
the  Project  to the third  party in  accordance  with the terms of the  Project
Offer;  provided,  that if the purchase price for the Project is reduced by more
than five percent (5%) or other terms of the  purchase are  materially  changed,
the  Nonaccepting  Member  shall  again have the right,  within ten (10) days of
receipt of notice of such reduced  purchase  price,  to purchase the  Membership
Interest of the Accepting Member as provided herein.

     XII.2   Closing.  The  closing  of a  purchase  of  an  Accepting  Member's
Membership  Interest pursuant to Section 12.1 shall occur at a location in Texas
or Wyoming  designated by the  Nonaccepting  Member on a date within  forty-five
(45) days  following  receipt of the  Project  Purchase  Notice.  At any closing
referred to herein,  the  Nonaccepting  Member shall pay to the Accepting Member
the Right of Refusal  Purchase  Price and each party  shall  execute and deliver
such appropriate and customary closing  documents,  including  opinions of legal
counsel,  as  the  other  party  may  reasonably  request  for  the  purpose  of
consummating the sale.

     XII.3   Project  Failure.  In the  event the  Pre-Development  Phase is not
completed  in  accordance  with  the  material  terms  of the  Development  Plan
("Project Failure"), then JHSC may purchase the Membership Interest of RRI for a
price equal to the then  existing  balance of RRI's  Capital  Account.  Upon the
occurrence of Project  Failure,  RRI shall  promptly give written notice of such
occurrence  to JHSC.  JHSC  shall  then have 10  Business  Days from the date of
receipt  of any such  notice  (or 30 days  from the date it was  required  to be
given) to agree by written notice to RRI to purchase RRI's Membership  Interest.
Any sale to JHSC  pursuant to this Section 12.3 shall be  consummated  within 20
Business Days  following the 10 Business Day notice period  referred to above in
this Section  12.3.  If JHSC elects not to purchase the  Membership  Interest of
RRI, then the Company shall be dissolved  pursuant to  Article XIV  hereof.  Any
dispute as to the occurrence of Project Failure shall be settled pursuant to the
terms of Section 8.2 hereof.

                                       28
<PAGE>
     XII.4   Indemnification.  Upon the  closing of any  purchase  and sale of a
Membership  Interest  pursuant to this Article XII, the purchasing  Member shall
execute an agreement  pursuant to which such Member agrees to indemnify and hold
harmless  the selling  Member  from and  against  any and all  claims,  demands,
charges, losses, damages, liabilities and obligations arising from the operation
of the Company after the consummation of such purchase.

                                  ARTICLE XIII

                       ADMISSION AND WITHDRAWAL OF MEMBERS

     XIII.1   Admission  of Members.  On the Effective  Date, RRI and JHSC shall
become  Members in the Company.  A Person,  other than an Affiliate of a Member,
may become a new Member of the  Company  upon (i)  receiving  the consent of the
then  current  Members  to  such  admission  and to the  amount  of the  Capital
Contribution to be made by such new Member, (ii) making the Capital Contribution
to the Company and (iii)  executing an addendum to this  Agreement  which by its
terms (a) binds such new Member to the terms and  conditions  set forth  herein,
(b) recites the Capital  Contribution to be made by such new Member and (c) sets
forth the Membership  Interest to be received by such new Member in exchange for
its Capital Contribution.

     XIII.2   Admission   of  Transferee   Affiliate  as  Successor   Member.  A
Transferee  Affiliate  shall be admitted  to the Company as a Member,  effective
immediately  prior to such transfer;  provided that such  transferee  shall have
furnished  to the other Member  acceptance,  in form  satisfactory  to the other
Member,  of all the  terms  and  conditions  of this  Agreement  and such  other
documents as the other Member shall reasonably request.

     XIII.3   Withdrawal  of  Members.  Except  following  the  transfer  of its
Membership  Interest  as  provided  in  Article  XII and the  admission  of such
transferee  as a Member  pursuant  to  Section  13.1 or 13.2,  a Member  may not
withdraw from the Company except with the approval of the other Members.

     XIII.4   Amendment  of  this  Agreement.  Following  the  admission  to the
Company  of any  successor  or new  Member,  the  Members  shall  take all steps
necessary and  appropriate to prepare and record or file, if necessary,  as soon
as  practicable  an  amendment  to this  Agreement  and other  filings  relating
thereto.

                                   ARTICLE XIV

                           DISSOLUTION AND LIQUIDATION

     XIV.1   Dissolution. The Company shall be dissolved upon:

          (91) the expiration of its term as provided in Section 1.3;

                                       29
<PAGE>

          (92) Project  Failure and no subsequent  purchase of RRI's  Membership
     Interest by JHSC;

          (93) the  failure  of the  Company to obtain  funding  for the Loan by
     May 1, 1999, unless the Members agree to extend this time period; provided,
     however,  that if the  Company is unable to obtain the Loan and the Company
     determines to pursue any legal remedies available to it arising as a result
     thereof,  the  Company  shall not be  dissolved  until the  Company and any
     Member  have  exhausted  all  remedies  available  to them or the matter is
     otherwise resolved;

          (94) the sale or other  disposition of all or substantially all of the
     Company's  assets  unless  such  sale or  other  disposition  involves  the
     acquisition  of any  additional  property  or any  deferred  payment of the
     consideration  for such  sale or other  disposition,  in  which  event  the
     Company shall  dissolve on the date the last of any such deferred  payments
     is received by the Company;

          (95) the bankruptcy of a Member; or

          (96) any other  event  that,  under the  Delaware  Act, is required to
     cause its dissolution.

     XIV.2   Bankruptcy.  For purposes of Section  14.1,  bankruptcy of a Member
shall be deemed to have occurred  when (i) it commences a voluntary  proceeding,
or  files  an  answer  in  any  involuntary   proceeding  seeking   liquidation,
reorganization or other relief under any bankruptcy, insolvency or other similar
law now or hereafter in effect; (ii) it is adjudged a bankrupt or insolvent,  or
has  entered  against it a final and  nonappealable  order for relief  under any
bankruptcy,  insolvency  or similar  law now or  hereafter  in effect;  (iii) it
executes and  delivers a general  assignment  for the benefit of its  creditors;
(iv) it files an answer or other  pleading  admitting  or failing to contest the
material  allegations  of a petition  filed against it in any  proceeding of the
nature  described in clause (i); (v) it seeks,  consents to or acquiesces in the
appointment  of a  trustee,  receiver  or  liquidator  for it or for  all or any
substantial part of its properties;  (vi) any proceeding of the nature described
in clause (i) has not been dismissed 120 days after the commencement  thereof or
(vii) the appointment without its consent or acquiescence of a trustee, receiver
or liquidator for it or for all or any substantial portion of its properties has
not been vacated or stayed within 90 days of such  appointment or is not vacated
within 90 days after the expiration of any such stay.

     XIV.3   Liquidation.  Upon  dissolution of the Company,  RRI, or if RRI has
withdrawn  or become  bankrupt as defined in Section  14.2,  JHSC or a Person or
liquidating committee selected by JHSC, shall be the Liquidator.  The Liquidator
(if other  than RRI) shall be  entitled  to receive  such  compensation  for its
services as may be approved by JHSC.  The  Liquidator  shall agree not to resign
without 15 days' prior  written  notice and may be removed at any time,  with or
without  cause,  by  JHSC.  Upon  dissolution,  removal  or  resignation  of the
Liquidator, a successor and substitute Liquidator (who shall have and succeed to
all rights,  powers and duties of the original  Liquidator) shall within 30 days
be selected by JHSC.  The right to appoint a successor or substitute  Liquidator
in the manner  provided  herein shall be recurring and continuing for so long as
the functions and services of the  Liquidator  are  authorized to continue under
the provisions  hereof,  and every

                                       30
<PAGE>
reference  herein to the  Liquidator  shall be deemed to refer  also to any such
successor or substitute Liquidator. Except as expressly provided in this Article
XIV, the Liquidator shall have and may exercise,  without further  authorization
or consent of any of the parties  hereto,  all of the powers  conferred upon RRI
under  the terms  hereof  (but  subject  to all of the  applicable  limitations,
contractual  and  otherwise,  upon the  exercise  of such  powers) to the extent
necessary or desirable in the good faith judgment of the Liquidator to carry out
its duties and  functions  hereunder for and during such period of time as shall
be reasonably  required in the good faith judgment of the Liquidator to complete
the winding up and  liquidation of the Company.  The Liquidator  shall liquidate
the assets of the Company,  and shall apply and  distribute the proceeds of such
liquidation,  unless  otherwise  required by mandatory  provisions of applicable
law, first, to the payment to creditors of the Company,  including  Members,  in
order of priority provided by law and then,  following the allocation of Company
income gain,  loss and deduction as provided in Section 7.1, to the Members,  in
proportion  to and to the extent of the  positive  balances in their  respective
Capital Accounts as adjusted to reflect the allocations provided in Section 7.1;
provided  that the  Liquidator  may place in  escrow a reserve  of cash or other
assets of the Company for contingent  liabilities  in such amount  determined by
the Liquidator to be appropriate.

     XIV.4   No Distribution in Kind.  Notwithstanding the provisions of Section
14.3, which require the liquidation of the assets of the Company, but subject to
the order of priorities set forth therein,  if on dissolution of the Company the
Liquidator determines that an immediate sale of part or all of the assets of the
Company  would be  impractical  or would  cause undue loss to the  Members,  the
Liquidator  may, in its absolute  discretion,  defer for a  reasonable  time the
liquidation of any assets except those  necessary to satisfy  liabilities of the
Company,  including the Loan, but shall not, under any  circumstances,  make any
distributions  in kind,  other  than cash or cash  equivalents,  to the  Members
unless agreed to in writing by all Members.  Notwithstanding the foregoing,  the
Company  shall not be  terminated  until all assets are  reduced to cash or cash
equivalents and such cash or cash equivalents are distributed to the Members.

     XIV.5   Termination  of Company. Upon the completion of the distribution of
Company  property as provided in Section 14.3,  the Company shall be terminated,
and the  Liquidator  (and the other Member if  necessary)  shall take such other
actions as may be necessary or advisable to terminate the Company.

     XIV.6   Return  of Capital.  No Member shall be  personally  liable for the
return of the Capital Contributions of the other Member, or any portion thereof.
Any such return shall be made solely from Company assets.

                                   ARTICLE XV

                           AMENDMENT OF THIS AGREEMENT

  This Agreement may not be amended without the Approval of all of the Members.

                                   ARTICLE XVI

                               GENERAL PROVISIONS

                                       31
<PAGE>
     XVI.1   Addresses  and  Notices.  Any  notice,  demand,  request  or report
required or permitted to be given or made to a Member under this Agreement shall
be in writing and shall be deemed given or made when delivered in person or when
sent by United States registered or certified mail, return receipt requested, or
by  private  delivery  service  where a  receipt  for  delivery  is  signed by a
representative  of the recipient to the Member at the address  described  below.
Notices and other  communications  provided  for herein  shall be in writing and
shall  be  delivered  or sent as  hereinabove  provided  to the  parties  at the
following addresses:

         If to RRI:

         Raintree Resorts International, Inc.
         10000 Memorial Drive, Suite 480
         Houston, Texas  77024
         Attn:    Robert L. Brewton

         with a copy to:

         Robert V. Jewell
         Andrews & Kurth L.L.P.
         4200 Chase Tower
         600 Travis
         Houston, Texas   77002

         If to JHSC:

         Jackson Hole Ski Corporation
         P. O. Box 290
         Teton Village, Wyoming 83025
         Attn:    Peter Forsch

         with a copy to:

         Jesse Heath
         Holland & Hart LLP
         P.O. Box 8749
         555 17th Street, Suite 3200
         Denver, Colorado 80201-8749

A Member may at any time or from time to time designate,  by notice to the other
Member,  another  address  within  the  United  States  in lieu  of the  address
specified herein or in any previous designation  pursuant to this sentence.  Any
notice to the Company  shall be deemed given if received by RRI at the principal
office of the Company.

                                       32
<PAGE>

     XVI.2   Titles  and Captions.  All article or section titles or captions in
this Agreement shall be for convenience  only,  shall not be deemed part of this
Agreement  and shall in no way define,  limit,  extend or describe  the scope or
intent of any provisions  hereof.  Except as  specifically  provided  otherwise,
references to  "Articles"  and  "Sections"  are to articles and sections of this
Agreement.

     XVI.3   Pronouns and Plurals. Whenever the context may require, any pronoun
used in this Agreement shall include the  corresponding  masculine,  feminine or
neuter forms,  and the singular form of nouns,  pronouns and verbs shall include
the plural and vice versa.

     XVI.4   Construction  of  Term  "Includes."  The  term  "includes"  and its
derivatives means "includes, but is not limited to,"and corresponding derivative
expressions.

     XVI.5   Exhibits.  All exhibits  attached  hereto or referenced  herein are
expressly  incorporated  herein  and  made a part of this  Agreement;  provided,
however, that if there is any conflict or inconsistency between the body of this
Agreement and any such  exhibit,  the  provisions of the body of this  Agreement
shall prevail.

     XVI.6   Further   Action.   The  parties  shall  execute  and  deliver  all
documents, provide all information and take or refrain from taking action as may
be necessary or appropriate to achieve the purposes of this Agreement.

     XVI.7   Binding  Effect.  This Agreement shall be binding upon and inure to
the benefit of the parties  hereto and their heirs,  executors,  administrators,
successors, legal representatives and permitted assigns.

     XVI.8   Integration.  This Agreement constitutes the entire agreement among
the parties  hereto  pertaining to the subject  matter hereof and supersedes all
prior agreements and understandings pertaining thereto.

     XVI.9   Creditors.  Except as otherwise  specifically provided herein or in
any other agreement making a reference to this Agreement, none of the provisions
of this Agreement shall be for the benefit of or enforceable by any creditors of
the Company.

     XVI.10   Waiver.  No  failure  by any  party  to  insist  upon  the  strict
performance of any covenant,  duty,  agreement or condition of this Agreement or
to  exercise  any  right  or  remedy  consequent  upon a  breach  thereof  shall
constitute waiver of any such breach or any other covenant,  duty,  agreement or
condition.

     XVI.11   Counterparts.  This Agreement may be executed in counterparts, all
of which  together  shall  constitute  one agreement  binding on all the parties
hereto,  notwithstanding  that  all  such  parties  are not  signatories  to the
original or the same counterpart.

     XVI.12   Applicable  Law. This  Agreement  shall be construed in accordance
with and governed by the laws of the State of Delaware.

                                       33
<PAGE>
     XVI.13   Invalidity of Provisions. If any provision of this Agreement shall
be or become invalid,  illegal or  unenforceable  in any respect,  the validity,
legality and enforceability of the remaining  provisions  contained herein shall
not be affected thereby.

     XVI.14   Nature of Company Interest. The Membership Interest of each Member
shall be personal property for all purposes.

     XVI.15   Waiver  of  Partition.  Each  Member  hereby  waives any rights to
partition of the Company property.

                                       34
<PAGE>

     IN WITNESS  WHEREOF,  the parties  hereto have executed this Agreement this
3rd day of November, 1998.

                    RAINTREE RESORTS INTERNATIONAL, INC.

                    By:      /s/ Robert L. Brewton
                    Name:    Robert L. Brewton
                    Title:   Executive Vice President - Chief Investment Officer

                    JHSC PROPERTIES, INC.

                    By:      /s/ Jerry Blann
                    Name:    Jerry Blann
                    Title:   PresidentEXHIBIT 10.41
                                                                   -------------

                           THIRD AMENDED AND RESTATED,
                              FORBEARANCE AGREEMENT
                              ---------------------

         THIS THIRD AMENDED AND RESTATED FORBEARANCE AGREEMENT ("Agreement") is
made effective as of the 15th of September, 2000, by and among TOWER TECH INC.,
an Oklahoma corporation, (the "Borrower"); HAROLD D. CURTIS, an individual (the
"Guarantor"), and PEOPLE FIRST BANK, an Oklahoma state banking corporation
("Bank").

                                    RECITALS
                                    --------

         A. Borrower is indebted to Bank pursuant to that certain promissory
note dated April 23, 1999 in the original principal amount of $6,500,000.00 (the
"Note") executed and delivered in connection with that certain Amended and
Restated Loan Agreement of even date with the Note by and between the Borrower,
Guarantor and the Bank (the "Loan Agreement"). The Note is secured by, among
other things, that certain Security Agreement executed by Borrower in favor of
Bank and dated of even date with the Note (the "Security Agreement") the
guarantee of the Guarantor of even date with the Note (the "Guaranty"). The Loan
Agreement, Note, Security Agreement, Guaranty and all other written documents
executed in connection therewith, together with any written renewals,
modifications and/or extensions thereof are collectively referred to as the
"Loan Documents." Words and phrases not otherwise defined herein shall have the
meaning given in the Loan Agreement.

         B. Borrower, Guarantor and Bank have entered into that certain Loan
Modification Agreement dated effective as of April 3, 2000 (the "First Loan
Modification Agreement"), amending and modifying the Loan Documents as provided
therein, including, without limitation, amending the maturity date of the Note
to June 1,2000.

         C. Borrower, Guarantor and Bank have entered into that certain Second
Loan Modification Agreement dated effective as of June 1, 2000 (the "Second Loan
Modification Agreement"), amending and modifying the Loan Documents as provided
therein, including, without limitation, amending the maturity date of the Note
to June 26, 2000.

         D. Borrower, Guarantor and Bank have entered into that certain
Forbearance Agreement dated June 27, 2000 (the "First Forbearance Agreement")
whereby the Bank agreed to forbear from exercising certain of its rights and
remedies under the Loan Documents for a period ending on July 6, 2000 in
reliance upon the covenants, representations, and warranties of Borrower and
Guarantor contained in the First Forbearance Agreement.

         E. Borrower, Guarantor and Bank have entered into that certain Amended
and Restated Forbearance Agreement dated July 13, 2000 (the "Amended and
Restated Forbearance Agreement") amending and restating the terms and provisions
of the First Forbearance Agreement whereby the Bank agreed to forbear from
exercising certain of its rights and remedies under the Loan Documents for a
period ending on August 3, 2000 in reliance upon the covenants,

                                  Page 1 of 10
<PAGE>

representations, and warranties of Borrower and Guarantor contained in the
Amended and Restated Forbearance Agreement.

         F. Borrower, Guarantor and Bank have entered into that certain Second
Amended and Restated Forbearance Agreement dated effective August 3, 2000 (the
"Second Amended and Restated Forbearance Agreement") amending and restating the
terms and provisions of the Amended and Restated Forbearance Agreement whereby
the Bank agreed to forbear from exercising certain of its rights and remedies
under the Loan Documents for a period ending on September 7, 2000 in reliance
upon the covenants, representations, and warranties of Borrower and Guarantor
contained in the Second Amended and Restated Forbearance Agreement.

         G. Borrower continues to be in default in the payment and/or
performance of certain provisions of the Note and other Loan Documents. Borrower
and Guarantor acknowledge that the indebtedness evidenced by the Note is due and
owing to the Bank without right of setoff, and such indebtedness has not been
paid in accordance with the terms of the Loan Documents. Borrower and Guarantor
have requested that Bank forebear from exercising its rights and remedies under
the Loan Documents for a period of time as specified herein in reliance upon the
covenants representations, and warranties of Borrower and Guarantor herein and
for other good and valuable consideration. This Agreement is intended to amend
and restate the terms and provisions of the Second Amended and Restated
Forbearance Agreement.

                                    AGREEMENT
                                    ---------

         For and in consideration of the mutual covenants contained herein, Ten
Dollars ($10.00), and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Borrower, Guarantor, and Bank
agree as follows:

         1. Recitals. The foregoing recitals are confirmed by the parties as
true and correct and are incorporated herein by reference. The recitals are a
substantive, contractual part of this Agreement.

         2. No Waiver. The execution, delivery and performance of this Agreement
by Bank and the acceptance by Bank of performance of Borrower and Guarantor
hereunder (a) shall not constitute a waiver or release by Bank of any default
that may now or hereafter exist under the Loan Documents, (b) shall not
constitute a novation o f the Loan Documents as it is the intent of the parties
to modify the Loan Documents as expressly set out herein, and (c) except as
expressly provided in this Agreement, shall be without prejudice to, and is not
a waiver or release of, Bank's rights at any time in the future to exercise any
and all rights conferred upon Bank by the Loan Documents or otherwise at law or
in equity, including but not limited to the right to accelerate the Note, if not
already accelerated, and to institute collection proceedings against Borrower
and/or Guarantor and/or any fight against any other person or entity not a party
to this Agreement. Similarly, the execution, delivery, and performance of this
Agreement by Borrower and Guarantor and the acceptance by Borrower and Guarantor
of the performance by Bank hereunder shall not, subject to the express
provisions of this Agreement, constitute a waiver or release of any of
Borrower's or Guarantor's rights under the Loan Documents; provided, however,
that Borrower and

                                  Page 2 of 10
<PAGE>

Guarantor, jointly and severally, waive any and all claims now or hereafter
arising from or related to any delay by Bank in exercising any rights or
remedies under the Loan Documents, including, without limitation, any delay in
foreclosing on any collateral securing the Note.

         3. Acknowledgment of Amounts Due and Maturity Date. Bank and Borrower
acknowledge that as of the beginning of business on September 13, 2000, (a) the
outstanding balance of the Note as of the date first hereinabove stated was
$4,618,932.14 in unpaid principal (the "Note Balance"), and $170,204.93 in
accrued, unpaid interest. Borrower and Guarantor waive any and all rights to
notice of payment default or any other default, protest and notice of protest,
dishonor, diligence in collecting and the bringing of suit against any party,
notice of intention to accelerate, notice of acceleration, demand for payment
and any other notices whatsoever regarding the Note or the other Loan Documents,
and further waive any claims that any notices previously given are insufficient
for any reason.

         4. Advances/Borrowing Base Shortfall. Borrower acknowledges and agrees
that it shall not be entitled to, nor shall Borrower request, ,any additional
advances under the Note which would cause the principal balance thereunder to
exceed $4,725,000.00 during the period from September 15, 2000 through September
21, 2000; $4,625,000.00 during the period from September 22, 2000 through
September 28, 2000; $4,550,000.00 during the period from September 29, 2000
through October 5, 2000; $4,600,000.00 during the period from October 6, 2000
through October 12, 2000; $4,700,000.00 during the period from October 13, 2000
through October 19, 2000; $4,600,000.00 during the period from October 20, 2000
through October 26, 2000; and $4,625,00.00 during the period from October 27
2000 through October 31,2000.

         In addition, the amount by which the outstanding principal balance of
the Note exceeds the Borrowing Base (the "Borrowing Base Shortfall"), shall not
be more than $370,000.00 during the period from September 15, 2000 through
September 2 I, 2000; $250,000.00 during the period from September 22, 2000
through September 28, 2000; $150,000.00 during the period from September 29,
2000 through October 5, 2000; $150,000.00 during the period from October 6, 2000
through October 12, 2000; $250,000.00 during the period from October 13, 2000
through October 19, 2000; $200,000.00 during the period from October 20, 2000
through October 26, 2000; and $225,00.00 during the period from October 27 2000
through October 31,2000.

         Notwithstanding anything else contained herein to the contrary, all
receipts and collections of any nature, including, without limitation, those
from the sale of inventory and collections of accounts receivable, shall be
applied as a reduction of the principal balance of the Note.

         5. Forbearance. So long as this Agreement is not terminated as provided
herein, Bank agrees not to foreclose or attempt to foreclose any collateral
securing the Note, institute suit for collection of the Note against Borrower or
any Guarantor, or exercise any other remedies available to it under the Loan
Documents or under applicable law for a period from the date hereof until 5:00
p.m., October 31, 2000 (the "Forbearance Period"). Upon termination of the
Forbearance Period, or otherwise under the provisions of this Agreement, or if
all amounts due and owing under the Note are not paid in full on or before the
expiration of the Forbearance Period,

                                  Page 3 of 10
<PAGE>

then Bank may seek to foreclose upon any collateral for the Note and to exercise
any other remedies to which Bank may be entitled under the Loan Documents, or
applicable law to collect amounts due under the Note, Guaranty, or other Loan
Documents. Borrower and Guarantor agree that neither Borrower nor any Guarantor,
jointly or severally, will, during the Forbearance Period, initiate any action
of any kind against Bank with respect to the Note, exercise any remedy available
under the Loan Documents or otherwise, or make any type of demand upon Bank with
respect to the indebtedness evidenced by the Note.

         6. Subordinated Debt. Notwithstanding the provisions of Section 7.10 of
the Loan Agreement, during the term of this Agreement, Borrower agrees that it
will not make any payment of interest or principal under any of its subordinated
debentures. In addition, Borrower agrees that it will not make any payment of
interest or principal on any indebtedness which Borrower owes to Electrical
Constructors.

         7. Administrative Fee. Borrower agrees to pay to the Bank a monthly
administrative fee of $5,000.00 for each month through the Forbearance Period,
and for the months of February, March, April, May, June, July, August and
September, 2000, for a total administrative fee due and owing of as of the date
hereof in the amount of $40,000.00. Borrower agrees that the administrative fee
is deemed earned by the Bank in all respects and is not refundable.
Notwithstanding anything contained in this Section 7 to the contras, the Bank
agrees that although the administrative fee set forth and described herein is,
or may hereafter be, due and owing, the Borrower shall have until October 31,
2000 to pay such administrative fee to the Bank.

         8. Interest Rate. Notwithstanding any provision of the Note to the
contrary Borrower and Guarantor agree that the interest rate to be charged by
the Bank under the Note as of the date hereof is a per annum rate equal to the
Base Rate (as defined in the Note) plus three percent (3.0%).

         9. Representations and Warranties. In order to induce Bank to execute,
deliver and perform this Agreement, Borrower and Guarantor warrant and represent
to Bank that:

                  (a) this Agreement is not being made or entered into with the
actual intent to hinder, delay, or defraud any entity or person, and (i)
attached hereto as Exhibit "A" is the Guarantor's February 14, 2000 financial
statements which are true and correct in all material respects, and (ii)
attached hereto as Exhibit "B" are the Borrower's May 31, 2000 financial
statements which are true and correct in all material respects;

                  (b) this Agreement is not intended by the parties to be a
novation of the Loan Documents and, except as expressly modified herein, all
terms, conditions, rights and obligations as set out in the Loan Documents are
hereby reaffirmed and shall otherwise remain in full force and effect as
originally written and agreed. In addition, unless otherwise amended hereby, the
terms, conditions, rights and obligations as set out in the First Loan
Modification Agreement, the Second Loan Modification Agreement are hereby
reaffirmed and shall otherwise remain in full force and effect as originally
written and agreed;

                                  Page 4 of 10
<PAGE>

                  (c) no action or proceeding, including, without limitation, a
voluntary or involuntary petition for bankruptcy under any chapter of the
Federal Bankruptcy Code, has been instituted by or against Borrower or
Guarantor;

                  (d) all information provided by Borrower and Guarantor to Bank
prior to the date hereof, including, without limitation, all financial
statements, balance sheets, and cash flow statements, was, at the date of
delivery, and is, as of the date hereof, true and correct in all respects.
Borrower and Guarantor recognize and acknowledge that Bank is entering into this
Agreement based in part on the financial information provided to Bank by each of
them and that the truth and correctness of that financial information is a
material inducement to Bank in entering into this Agreement. During the term of
this Agreement, Borrower and Guarantor agree to advise Bank promptly in writing
of any and all new information, facts, or occurrences which would in any way
materially supplement, contradict, or affect any financial statements, balance
sheets, cash flow statements, or similar items furnished to Bank. Bank waives
any default based on projections", provided to the Bank prior to the date hereof
which may have been inaccurate.

                  (e) This Agreement and the Loan Documents constitute the
entire agreement among Bank, Guarantor and Borrower with respect to this matter.

         10. Budget. The Borrower shall use its best efforts to comply in all
respects with and operate solely under the budget of the Borrower attached
hereto as Exhibit "C" (the "Budget"); PROVIDED, HOWEVER, notwithstanding
anything else contained herein to the contrary (i)Borrower shall not exceed the
expenditures set forth in the Budget, (ii) the outstanding principal balance
under the Note shall not exceed the amounts set forth at Section 4 herein during
the time periods described in Section 4, and (iii) the Borrowing Base Shortfall
shall not exceed the amounts set forth at Section 4 herein during the time
periods described in Section 4.

         11. Borrower Management. No later than September 15, 2000, the Borrower
shall duly appoint a "Crisis Manager" for the Borrower, reasonably acceptable in
all respects to the Bank, under terms of engagement reasonably acceptable to the
Bank, which Crisis Manager shall provide and maintain direct responsibility for
the following:

                  (a) The Crisis Manager shall develop a plan of orderly
liquidation for the Borrower (the "Orderly Plan") which shall be acceptable to
the Bank in all respects and which shall be duly approved by majority consent of
the Board of Directors of the Borrower no later than October 13, 2000. The
Orderly Plan shall be provided to the Bank no later than October 13, 2000, and
shall include, but not be limited to (i) a plan for the orderly sale and
liquidation of the Borrower's assets, including, but not limited to, parts and
raw materials inventory, finished goods inventory, accounts receivable,
equipment and real estate, (ii) the marketing and sale of all Borrower patents
and technology, (iii) the cessation of the Borrower's business and affairs and
the winding up thereof, and (iv) the payment o f the Borrower's indebtedness.

                  (b) The Crisis Manager shall submit to the Bank by 10:00 a.m.
each Tuesday during the term hereof, a written compliance certificate
(acceptable in form to Crisis Manager and Bank) (i) confirming that the weekly
Borrowing Base Certificate for the Borrower is

                                  Page 5 of 10
<PAGE>

true and correct, that the Borrowing Base Shortfall is no greater than as
provided in Section 4 herein during the time periods described in Section 4, and
that the Borrower has not exceeded the expenditures set forth in the Budget, all
to the best of the Crisis Manager's knowledge and belief (ii) the status,
progress and terms of the recapitalization of the Borrower by Taglich Brothers,
Inc. ("Taglich") as described in Section 12 below, and (iii) providing that, to
the best of the Crisis Manager's knowledge and belief, Borrower is not in
default hereunder.

                  (c) The Crisis Manager shall review and monitor all cash
expenditures necessary to implement and carry out the Orderly Plan during the
Forbearance Period; provided, however, if the Forbearance Period is terminated
by the Bank hereunder and the Orderly Plan is implemented, the Crisis Manager
shall review and approve all cash expenditures. The Crisis Manager's terms,
conditions and compensation shall be subject to reasonable modification at the
request of Crisis Manager if and when the Orderly Plan is implemented.

                  (d) The Crisis Manager shall prepare, with such assistance of
the Borrower's personnel as deemed necessary by the Crisis Manager, and submit
to the Bank by 10:00 a.m. each Tuesday during the term hereof (i) a weekly
Borrowing Base Certificate for the Borrower, (ii) other collateral reports
reasonably required by the Bank, and (iii) other financial reports of the
Borrower reasonably required by the Bank, all of which shall be certified as
true and correct by the Chief Executive Officer or President of the Borrower and
the Crisis Manager, to the best of the Crisis Manager's knowledge and belief.

                  (e) The Crisis Manager shall evaluate all non-management
personnel of the Borrower, their duties and associated cost, and a manning table
necessary to implement and carry out the Orderly Plan.

                  (f) The Crisis Manager shall bear the responsibility of
assisting the Borrower in communicating and negotiating with secured and
unsecured creditors of the Borrower to allow for certain key/critical assets to
remain in place with the Borrower for the purpose of carrying out the Orderly
Plan.

                  (g) The Crisis Manager shall prepare a budget for the
implementation of the Orderly Plan and Bank approval of all expenditures related
to the Orderly Plan, and such budget shall be approved by a majority of the
Board of Directors of the Borrower no later than October 13, 2000, and provided
to the Bank by such date.

         The Borrower shall permit the Crisis Manager access at all times to all
information of the Borrower, whether financial in nature or otherwise,
necessary, for the Crisis Manager to perform its duties hereunder and under its
terms of engagement by the Borrower.

         12. Recapitalization. As a condition precedent to the Bank continuing
to forbear from exercising its rights and remedies under the Loan Documents, the
Borrower shall borrow from Taglich and Taglich shall loan to Borrower,
$100,000.00 on or before September 15, 2000, $200,000.00 on or before September
22, 2000, and $200,000.00 on or before September 29, 2000, for a total sum of
not less than $500,000.00 on terms reasonably acceptable to the Bank (the

                                  Page 6 of 10
<PAGE>

"Interim Subordinate Financing"), all of which Interim Subordinate Financing
shall be applied on such dates, as a principal reduction of the Note. Borrower
shall use its best efforts to recapitalize its operations by obtaining a loan or
form of equity financing through Taglich, or some other financing source, in an
amount not less than $6,000,000.00 no later than the end of the Forebearance
Period. In connection with the Interim Subordinate Financing, and as a condition
precedent to the Bank continuing to forbear from exercising its rights and
remedies under the Loan Documents, Borrower shall cause Taglich to execute a
form of Intercreditor Agreement acceptable in all respects to Bank confirming
that any security interest granted by Borrower in favor of Taglich shall be
junior and subordinate to the security interest of Bank, except as Bank may
expressly agree otherwise with Taglich in the Intercreditor Agreement.

         13. Default. Bank shall be entitled to pursue each and every remedy
hereunder and under the Loan Documents, and the obligations of the Bank to
continue its forbearance hereunder shall be deemed terminated, alt at Bank's
sole option, upon the occurrence of any of the following:

                  (a) Borrower and/or Guarantor, files a petition for bankruptcy
under any chapter of the Federal Bankruptcy Code or takes advantage of any other
debtor relief taw, or an involuntary petition for bankruptcy under any chapter
of the Federal Bankruptcy Code is flied against Borrower and/or any Guarantor,
or any other judicial action is taken with respect to Borrower and/or any
Guarantor by any creditor;

                  (b) Bank discovers that any representation or warranty made
herein by Borrower or Guarantor was or is untrue, incorrect or misleading in any
material respect;

                  (c) Borrower or Guarantor breaches or defaults in performance
of any covenant or agreement contained in this Agreement, the First Loan
Modification Agreement, the Second Loan Modification Agreement or the Loan
Documents, other than the defaults known by Bank to exist as of the date of this
Agreement.

                  (d) Borrower fails to submit any Borrowing Base Certificate or
other financial report requested by Bank in the time frame provided herein,
Borrower exceeds the expenditures set forth in the Budget, Borrower exceeds the
Borrowing Base Shortfall as set forth in Section 4 herein during any period as
set forth in such Section 4, or the principal amount of the Note exceeds the
maximum amounts set forth Section 4 herein during any period as set forth in
such Section 4.

                  (e) any payment hereafter required by the Note or by the Loan
Documents, or any note or obligation of the Borrower to Taglich, or to the
Crisis Manager under his engagement letter(s) with the Borrower, is not made
when it is due, or the occurrence or existence of any event (a "Material Event")
which results in the enforcement of any obligation of the Borrower to others
under any promissory note, agreement or undertaking, including, without
limitation, any obligation in respect of the Interim Subordinate Financing, and
in the Bank's sole discretion, any Material Event impedes the ability of the
Borrower to operate its business.

                                  Page 7 of 0
<PAGE>

                  (f) the Crisis Manager resigns or the Borrower terminates his
employment and the Crisis Manager is not replaced with a person acceptable to
Bank or such other arrangements acceptable to the Bank are not made within five
(5) business days.

         14. Waiver of Claims. Borrower and Guarantor warrant and represent to
Bank that the Note is not subject to any credits, charges, claims, or rights of
offset or deduction of any kind or character whatsoever; and Borrower and
Guarantor release and discharge Bank from any and all claims and causes of
action, whether known or unknown and whether now existing or hereafter arising,
including without limitation, any usury claims, that have at any time been
owned, or that are hereafter owned, in tort or in contract by Borrower or
Guarantor and that arise out of any one or more circumstances or events that
occurred prior to the date of this Agreement.

         15. Bankruptcy. In entering into this Agreement, Borrower, Guarantor
and Bank hereby stipulate, acknowledge and agree that Bank gave up valuable
rights and agreed to forbear from exercising legal remedies available to it in
exchange fbr the promises, representations, acknowledgments and warranties of
Borrower and Guarantor as contained herein and that Bank would not have entered
into this Agreement but for such promises, representations, acknowledgments,
agreements, and warranties, all of which have been accepted by Bank in good
faith, the breach of which by Borrower or Guarantor in any way, at any time, now
or in the future, would admittedly and confessedly constitute cause for
dismissal of any such bankruptcy petition pursuant to t I U.S.C. ss.I l12(b).

         As additional consideration for Bank agreeing to forbear from
immediately enforcing its rights and remedies under this Agreement, the Note and
in the Loan Documents, including but not limited to the institution of
foreclosure/collection proceedings, Borrower and Guarantor agree that in the
event a bankruptcy petition under any Chapter of the Bankruptcy Code (11 U.S.C.
ss.101, et seq.) is filed by or against Borrower or any Guarantor at any time
after the execution of this Agreement, Bank shall be entitled to the immediate
entry of an order from the appropriate bankruptcy court granting Bank complete
relief from the automatic stay imposed by ss.362 of the Bankruptcy Code (11
U.S.C. ss.362) to exercise its foreclosure and other fights, including but not
limited to obtaining a foreclosure judgment and foreclosure sale, upon the
filing with the appropriate court of a motion for relief from the automatic stay
with a copy of this Agreement attached thereto. Borrower and Guarantor
specifically agree (i) that upon filing a motion for relief from the automatic
stay, Bank shall be entitled to relief from the stay without the necessity of an
evidentiary hearing and without the necessity or requirement of the Bank to
establish or prove the value of the Property, the lack of adequate protection of
its interest in the Property, or the lack of equity in the Property; (ii) that
the lifting of the automatic stay hereunder by the appropriate bankruptcy court
shall be deemed to be "for cause" pursuant to ss.362(d)(1) of the Bankruptcy
Code (11 U.S.C. ss.362 (d)(1); and (iii) that Borrower and guarantor will not
directly or indirectly oppose or otherwise defend against Bank's efforts to gain
relief from the automatic stay. This provision is not intended to preclude
Borrower or Guarantor from filing for protection under any Chapter of the
Bankruptcy Code. The remedies prescribed in this paragraph are not exclusive and
shall not limit Bank's rights under the Loan Documents, this Agreement or under
any law.

                                  Page 8 of 10
<PAGE>

         All of the above terms and conditions have been freely bargained for
and are all supported by reasonable and adequate consideration and the
provisions herein are material inducements for Bank entering into this
Agreement.

         16. Expenses. The Borrower and Guarantor jointly and severally covenant
and agree to pay all costs and expense required to satisfy the conditions of
this Agreement or incurred by reason of Borrower's default hereunder.

         17. Miscellaneous.

                  (a) Any future waiver, alteration, amendment or modification
of any of the provisions of the Loan Documents or this Agreement shall not be
valid or enforceable unless in writing and signed by all parties. Moreover, any
delay by Bank in enforcing its rights after an event of default shall not be a
release or waiver of the event of default and shall not be relied upon by the
Borrower or the Guarantor as a release or waiver of the default.

                  (b)This Agreement shall be binding upon and shall inure to the
benefit of the parties hereto, their heirs, executors, administrators,
successors, legal representatives, and assigns.

                  (c) The headings of paragraphs in this Agreement are for
convenience of reference only and shall not in any way affect the interpretation
or construction of this Agreement.

                  (d)This Agreement may be executed in two or more counterpart
copies of the entire agreement or of signature pages to the agreement, each of
which may be executed by one or more of the parties hereto, but all of which,
when taken together, shall constitute a single agreement binding upon all of the
parties hereto or thereto, as the case may be.

                  (e) THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE
OF OKLAHOMA AND FEDERAL LAW, AS APPLICABLE.

THIS AGREEMENT REPRESENTS THE FINAL AGREEMENT AMONG THE PARTIES WITH RESPECT TO
THE SUBJECT MATTER HEREOF AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR ORAL
OR WRITTEN CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS AMONG THE PARTIES.
THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

                                  Page 9 of 10
<PAGE>

Executed on the date first set forth above.

                                    Borrower:

                                    TOWER TECH, INC., an Oklahoma corporation

                                    By: /s/ Robert C. Brink
                                       --------------------------------
                                    Printed Name: Robert C. Brink
                                                 ----------------------
                                    Title: President
                                          -----------------------------
                                    Guarantor:

                                    /s/ Harold D. Curtis
                                    --------------------------------------------
                                    Harold D. Curtis, an individual

                                    Bank:

                                    PEOPLE FIRST BANK

                                    By: /s/ Ralph T. Fredrickson
                                       --------------------------------
                                    Printed Name: Ralph T. Fredrickson
                                                 ----------------------
                                    Title: EVP
                                          -----------------------------

                                 Page 10 of 10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}]]