Document:

LOAN AND SECURITY AGREEMENT

                         US $10,000,000 Credit Facility

                  provided by Textron Financial Corporation to:

                     CR Resorts Cancun, S. de R.L. de C.V.,
                    CR Resorts Los Cabos, S. de R.L. de C.V.,
                 CR Resorts Puerto Vallarta, S. de R.L. de C.V.,
                    Corporacion Mexitur, S. de R.L. de C.V.,
             CR Resorts Cancun Timeshare Trust, S. de R.L. de C.V.,
            CR Resorts Cabos Timeshare Trust, S. de R.L. de C.V. and
         CR Resorts Puerto Vallarta Timeshare Trust, S. de R.L. de C.V.
                         (Collectively, the "Borrower")

                             As of November 23, 1999

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TABLE OF CONTENTS
Section 1. DEFINITION OF TERMS...................................................................................   6
   1.1 Definitions...............................................................................................   6
Section 2. THE LOAN..............................................................................................  27
   2.1 Loan......................................................................................................  27
   2.2 Interest Rate.............................................................................................  27
   2.3 Payments..................................................................................................  28
   2.4 Prepayments...............................................................................................  28
   2.5 Guaranty..................................................................................................  30
Section 3. COLLATERAL............................................................................................  30
   3.1 Grant of Security Interest................................................................................  30
   3.2 Security Interest in All Pledged Notes Receivable and Interval Lease Contracts............................  30
   3.3 Perfection of Security....................................................................................  30
   3.4 Location of Collateral....................................................................................  30
   3.5 Insurance and Protection of Collateral....................................................................  30
   3.6 Protection of Collateral; Reimbursement...................................................................  31
   3.7 Cross-Collateralization and Default.......................................................................  31
Section 4. CONDITIONS PRECEDENT TO THE CLOSING AND FUNDING PROCEDURE.............................................  32
   4.1 Conditions Precedent......................................................................................  32
   4.2 Funding Procedure.........................................................................................  41
Section 5. INTENTIONALLY OMITTED.................................................................................  45
Section 6. GENERAL REPRESENTATIONS AND WARRANTIES................................................................  45
   6.1 Organization, Standing, Qualification.....................................................................  45
   6.2 Authorization, Enforceability, Etc........................................................................  46
   6.3 Financial Statements and Business Condition...............................................................  48
   6.4 Taxes.....................................................................................................  48
   6.5 Title to Properties:  Prior Liens.........................................................................  48
   6.6 Subsidiaries, Affiliates and Capital Structure............................................................  49
   6.7 Litigation, Proceedings, Etc..............................................................................  49
   6.8 Licenses, Permits, Etc....................................................................................  49
   6.9 Environmental Matters.....................................................................................  50
   6.10 Full Disclosure..........................................................................................  50
   6.11 Use of Proceeds/Margin Stock.............................................................................  50
   6.12 No Defaults..............................................................................................  51
   6.13 Compliance with Law......................................................................................  51
   6.14 Restrictions of Borrower or Guarantors...................................................................  52
   6.15 Broker's Fees............................................................................................  52
   6.16 Deferred Compensation Plans..............................................................................  52
   6.17 Labor Relations..........................................................................................  53
   6.18 Resort...................................................................................................  53
   6.19 Timeshare Documents and Reports..........................................................................  55
   6.20 Operating Contracts......................................................................................  55
   6.21 Architectural and Environmental Control..................................................................  56
   6.22 Tax Identification/Social Security Numbers...............................................................  56
   6.23 Construction.............................................................................................  56
   6.24 Continuation and Investigation...........................................................................  57
   6.25 Exchange Control.........................................................................................  57
   6.26 Year 2000................................................................................................  57
Section 7. COVENANTS.............................................................................................  58
   7.1 Affirmative Covenants.....................................................................................  58
   7.2  Construction Covenants...................................................................................  73
   7.3 Negative Covenants........................................................................................  73
Section 8. EVENTS OF DEFAULT.....................................................................................  76
   8.1 Nature of Events..........................................................................................  76
Section 9. REMEDIES..............................................................................................  80
   9.1 Remedies Upon Default.....................................................................................  80
   9.2 Notice of Sale............................................................................................  84
   9.3 Application of Collateral; Termination of Agreements......................................................  85
   9.4 Rights of Lender Regarding Collateral.....................................................................  85
   9.5 Delegation of Duties and Rights...........................................................................  85
   9.6 Lender Not in Control.....................................................................................  85
   9.7 Waivers...................................................................................................  85
   9.8 Cumulative Rights.........................................................................................  86
   9.9 Expenditures by Lender....................................................................................  86
   9.10 Diminution in Value of Collateral........................................................................  86
Section 10. CERTAIN RIGHTS OF LENDER.............................................................................  86
   10.1 Protection of Collateral.................................................................................  86
   10.2 Performance by Lender....................................................................................  87
   10.3 No Liability of Lender...................................................................................  87
   10.4 Right to Defend Action Affecting Security................................................................  88
   10.5 Expenses.................................................................................................  88
   10.6 Lender's Right of Set-Off................................................................................  88
   10.7 No Waiver................................................................................................  88

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   10.8 Right of Lender to Extend Time of Payment, Substitute, Release Security, Etc.............................  89
   10.9 Assignment of Lender's Interest..........................................................................  89
   10.10 Notice to Purchaser.....................................................................................  89
   10.11 Collection of the Notes.................................................................................  89
   10.12 Power of Attorney.......................................................................................  90
   10.13 Relief from Automatic Stay, Etc.........................................................................  90
   10.14 Investigations and Inquiries............................................................................  91
   10.16 Right of First Refusal..................................................................................  91
   10.17 Withholding Tax.........................................................................................  91
Section 11. TERM OF AGREEMENT....................................................................................  92
Section 12. MISCELLANEOUS........................................................................................  92
   12.1 Notices..................................................................................................  92
   12.2 Survival.................................................................................................  94
   12.3 Governing Law............................................................................................  94
   12.4 Limitation on Interest...................................................................................  94
   12.5 Invalid Provisions.......................................................................................  95
   12.6 Successors and Assigns...................................................................................  95
   12.7 Amendment................................................................................................  96
   12.8 Counterparts; Effectiveness..............................................................................  96
   12.9 Lender Not a Fiduciary...................................................................................  96
   12.10 Return of Notes Receivable..............................................................................  96
   12.11 Accounting Principles...................................................................................  97
   12.12 Total Agreement.........................................................................................  97
   12.13 Litigation..............................................................................................  97
   12.14 Incorporation of Exhibits...............................................................................  98
   12.15 Consent to Advertising and Publicity of Timeshare Documents.............................................  98
   12.16 Directly or Indirectly..................................................................................  98
   12.17 Headings................................................................................................  98
   12.18 Gender..................................................................................................  98
   12.19 No Duty.................................................................................................  98
   12.20 Reimbursement for Taxes.................................................................................  98
   12.21 Submissions.............................................................................................  99
   12.22 Investigations and Inquiries............................................................................  99
   12.23 Service of Process......................................................................................  99

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                                TABLE OF EXHIBITS

Exhibit A                  ASSIGNMENT OF PLEDGED NOTES RECEIVABLE AND INTERVAL
                           LEASE CONTRACTS

Exhibit B                  PERMITTED LIENS AND ENCUMBRANCES

Exhibit C                  LEGAL DESCRIPTION OF RESORT PROPERTY

Exhibit D                  TIMESHARE DOCUMENTS

Exhibit E                  PENDING LITIGATION

Exhibit F                  FORM OF REQUEST FOR ADVANCE (RECEIVABLES)

Exhibit G                  OPERATING CONTRACTS

Exhibit H                  FORM OF OFFICER'S CERTIFICATE

Exhibit I                  OWNERSHIP OF BORROWER ENTITIES

Schedule 1                 SALES PROJECTIONS

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                           LOAN AND SECURITY AGREEMENT

     This LOAN AND  SECURITY  AGREEMENT  is made and entered into as of November
23, 1999, by and among CR Resorts Cancun,  S. de R.L. de C.V., a Mexican limited
responsibility  corporation with variable capital ("CR Cancun"),  CR Resorts Los
Cabos, S. de R.L. de C.V., a Mexican  limited  responsibility  corporation  with
variable capital ("CR Cabos"), CR Resorts Puerto Vallarta, S. de R.L. de C.V., a
Mexican limited  responsibility  corporation  with variable  capital ("CR Puerto
Vallarta"),  Corporacion  Mexitur,  S.  de  R.L.  de  C.V.,  a  Mexican  limited
responsibility  corporation with variable  capital,  CR Resorts Cancun Timeshare
Trust, S. de R.L. de C.V., a Mexican  limited  responsibility  corporation  with
variable  capital,  CR Resorts  Cabos  Timeshare  Trust,  S. de R.L. de C.V.,  a
Mexican limited responsibility  corporation with variable capital and CR Resorts
Puerto  Vallarta   Timeshare  Trust  S.  de  R.L.  de  C.V.  a  Mexican  limited
responsibility  corporation  with variable  capital  (collectively,  jointly and
severally,  the  "Borrower");  Raintree  Resorts  International,  Inc., a Nevada
corporation  ("Guarantor"),   and  TEXTRON  FINANCIAL  CORPORATION,  a  Delaware
corporation ("Lender").

         In  consideration  of the mutual  covenants  and  agreements  contained
herein and other good and  valuable  consideration,  the receipt and adequacy of
which are hereby  acknowledged,  the parties to this Agreement,  intending to be
legally bound, hereby agree as follows:

Section 1. DEFINITION OF TERMS.

     1.1 Definitions.  The capitalized  terms used in this Agreement are defined
in this Section 1.1.  The  definitions  include the singular and plural forms of
the terms defined.

          (a) Advance.  A portion of the proceeds of the Loan advanced from time
     to time by  Lender  to  Borrower  in  accordance  with  the  terms  of this
     Agreement and pursuant to Section 2.1 herein.

          (b) Affiliate.  Any Person controlled by,  controlling or under common
     control with Borrower or the Guarantor.

          (c) Agreement. This Loan and Security Agreement by and among Borrower,
     the Guarantor and Lender  (including  the exhibits and schedules to it), as
     it may be amended from time to time.

          (d)  Assignment  of  Interest  in  Contracts,  Permits,  Licenses  and
     Approvals.  The  properly  recorded  document  executed  and  delivered  by
     Borrower  securing the Obligations  granting Lender an assignment of all of
     Borrower's  interest  in  and  to  all  contracts,  permits,  licenses  and
     approvals  with respect to the Resorts,  to the extent  recordation of such
     document is permissible under applicable United States or Mexican law.

          (e)  Assignment  of  Pledged  Notes   Receivable  and  Interval  Lease
     Contracts.  A recordable  Mexican  pledge or assignment  executed  before a
     Mexican  Notary  made by Borrower  in favor of Lender,  a specimen  form of
     which is  attached  hereto as  Exhibit  A,  evidencing  the  assignment  by
     Borrower  of all  Pledged  Notes  Receivable  and  related  Interval  Lease
     Contracts.

          (f) Background Documents. Defined in Section 4.1(f) of this Agreement.

          (g) Bankruptcy Code. Defined in Section 10.13 of this Agreement.

          (h) Borrowing Base. With respect to Eligible Notes Receivable  pledged
     to Lender in  connection  with each  Advance of the Loan for which at least
     one monthly payment has been made, an amount equal to the sum of (i) eighty
     percent (80%) of the aggregate  remaining principal balance of each Mexican
     Nuevos Peso  denominated  Eligible Note  Receivable,  plus (ii) eighty-five
     percent (85%) of the  aggregate  remaining  principal  balance of each U.S.
     Dollar denominated Eligible Note Receivable.

          (i)  Business  Day.  Each day which is not a  Saturday  or Sunday or a
     legal  holiday  under  the laws of the State of  Connecticut,  the State of
     Rhode Island, the United States of America or the United Mexican States.

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          (j) CERCLA. Defined in Section 1.1(cc) of this Agreement.

          (k) Closing Date. The date of this Agreement.

          (l)  Code.  The  Uniform  Commercial  Code in force in any  applicable
     jurisdiction  of the  United  States,  as  amended  from time to time,  and
     applicable Mexican law.

          (m)  Collateral.  Collectively,  all now owned or  hereafter  acquired
     right, title and interest of Borrower in and to all of the following:

               (i) A first priority lien and security  interest in and pledge of
          the Pledged Notes  Receivable  generated from the sale of Intervals in
          the Resorts,  together  with all  accounts,  chattel paper and general
          intangibles  related  thereto  and  the  cash  and  non-cash  proceeds
          thereof;

               (ii) A first priority assignment of and lien of proceeds from the
          Interval Lease  Contracts  executed by Purchasers in favor of Borrower
          encumbering the Intervals financed by the Notes Receivable,  including
          a  first  priority   assignment  of  Borrower's  rights   (exercisable
          following the occurrence of, and soley during the  continuance  of, an
          Event of Default  hereunder) to cancel such Interval  Lease  Contracts
          and to re-sell (or cause the resale of) the Intervals relating to such
          Interval Lease Contracts;

               (iii)  A  first  priority   assignment  of  Borrower's  right  to
          foreclose,  cancel or resell (or cause the  resale  of) all  Intervals
          which are related to Pledged Notes  Receivable which are in default or
          which are or become ineligible hereunder;  provided, however, that the
          rights of Lender under such assignment shall be exercisable  following
          the occurrence of, and solely during the  continuance  of, an Event of
          Default hereunder.  Notwithstanding anything to the contrary contained
          herein, Lender shall allow Borrower to substitute replacement Eligible
          Notes  Receivable for Pledged Notes Receivable which are in default or
          otherwise ineligible hereunder;

               (iv) A first priority assignment, subject to the Permitted FINOVA
          Liens,  of  Borrower's,  Guarantor's,  and/or any and all  Affiliates'
          interest in any  management,  marketing or other use,  maintenance  or
          service contracts for the Resorts;

               (v)  All  Encumbered  Intervals  related  to  each  Pledged  Note
          Receivable  including,  without  limitation,  the  right to  cancel or
          resell (or cause the resale of) an Interval (exercisable following the
          occurrence  of an Event of Default  hereunder) in the event of default
          by a Purchaser  pursuant to the terms of the Pledged Note  Receivable,
          together with all appurtenant rights and interests, including, without
          limitation,  appurtenant  rights and interests in and to the Units and
          Facilities,  and any easement,  license and use rights  appurtenant to
          such  Intervals in and to all facilities and amenities of the Resorts,
          all as described and set forth in the Timeshare Documents;

               (vi) A first priority  security interest in and to all documents,
          instruments, accounts, chattel paper, and general intangibles relating
          to the Pledged Notes  Receivable and the other  Collateral  (including
          the cash and non-cash proceeds thereof);

               (vii)  A  first  priority  security  interest,   subject  to  the
          Permitted  FINOVA  Liens,  in and to all  furniture,  furnishings  and
          fixtures  of every  kind and  description  (and all  improvements  and
          accessions  thereto,   including,   without  limitation,   the  Common
          Furnishings) located in or on or used in connection with any Interval;

               (viii) To the greatest  extent  permitted under United States and
          Mexican  law and subject to the  Permitted  FINOVA  Liens,  easements,
          leasehold  interests  (whether  as  lessor  or  lessee),   franchises,
          permits, approvals,  licenses,  facilities and amenities on, affecting
          or  appurtenant  to each of the Resorts and rights to occupy,  use and
          enjoy any such facilities or amenities and any Encumbered Intervals;

               (ix) All  rights  in,  to and  under  all  Payment  Authorization
          Agreements  signed and delivered by or on behalf of each  Purchaser of
          an Encumbered  Interval and all accounts and proceeds relating thereto
          or deriving therefrom;

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               (x) Subject to the Permitted  FINOVA Liens, any rights inuring to
          Borrower as an "institutional  mortgagee, an "institutional lender" or
          a "mortgagee" in connection  with any Encumbered  Interval as provided
          in the Timeshare Documents;

               (xi) Extensions, additions, improvements,  betterments, renewals,
          substitutions  and  replacements  of, for or to any of the Collateral,
          wherever located, together with the products,  proceeds, issues, rents
          and profits  thereof,  and any  replacements,  additions or accessions
          thereto or substitutions thereof, and all rights in or under insurance
          policies and to the proceeds of any insurance policies covering any of
          the other  Collateral,  all rights to unearned  or refunded  insurance
          premiums,  and the proceeds of any  condemnation  awards or any claims
          regarding any of the other Collateral;

               (xii) A first priority  security  interest  (pledge and deposit),
          subject to the Permitted  FINOVA Liens, in and to Borrower's  interest
          in all books,  records,  reports,  computer tapes,  computer disks and
          software relating to all or any portion of the Collateral,  including,
          without  limitation,  Borrower's  reservation  system  for  use of the
          Resorts;

               (xiii)  Subject  to  the  Permitted  FINOVA  Liens,  the  Textron
          Mortgages on the Resort Property and all  Improvements  constructed or
          to be constructed thereon;

               (xiv) A first priority lien (pledge and deposit),  subject to the
          Permitted FINOVA Liens, in and to the Personal Property, together with
          the   cash   and   non-cash   proceeds   thereof,   with   appropriate
          non-disturbance  language relating to common area equipment,  fixtures
          and furniture;

               (xv) To the extent  allowed  under Mexican law and subject to the
          Permitted FINOVA Liens, an absolute and unconditional first assignment
          or pledge of any and all  leases,  subleases,  licenses,  concessions,
          entry fees, or other agreements  which grant a possessory  interest in
          and  to,  or the  right  to use the  Resort  Property  or any  portion
          thereof,  including  any Unsold  Intervals  (collectively  the "Tenant
          Leases");

               (xvi)  Subject to the  Permitted  FINOVA  Liens,  an absolute and
          unconditional  first  assignment  or  pledge  of  all  of  the  rents,
          revenues,  income,  proceeds,  royalties,  profits and other  benefits
          payable for using, leasing, licensing,  possessing,  operating from or
          in, or otherwise  enjoying the Resort Property  pursuant to the Tenant
          Leases,  including,  without  limitation,  damages  received  upon the
          occurrence  of a  default  under  any of the  Tenant  Leases  and  all
          proceeds payable under any policy of insurance  covering loss of rents
          with respect thereto (collectively the "Tenant Income");

               (xvii) To the extent allowed under Mexican law and subject to the
          Permitted FINOVA Liens, an absolute and unconditional first assignment
          or pledge of all other  agreements  to which  Borrower is or becomes a
          party or holds any interest therein and which in any way relate to the
          use, occupancy, management, marketing, maintenance or enjoyment of the
          Resort Property,  including,  but not limited to, purchase  contracts,
          and  related  documents,  building  permits,  construction  contracts,
          completion bonds, utility contracts, maintenance agreements, marketing
          and sales agreements, management agreements and service contracts, and
          any  agreement   guaranteeing   the  performance  of  the  obligations
          contained  in  any  of  the  foregoing  agreements  (collectively  the
          "Property Contracts"), and in and to all related accounts and proceeds
          and all  deposits,  letters  of credit or other  property  pledged  or
          delivered pursuant thereto;

               (xviii)  A  first  priority  security  interest,  subject  to the
          Permitted FINOVA Liens, in all inventory,  supplies, accounts, chattel
          paper and general intangibles owned or hereafter acquired by Borrower,
          used or useful in  connection  with,  and placed or to be placed on or
          under the  Resort  Property,  including  but not  limited to the Units
          contained therein,  the Encumbered  Intervals and the Unsold Intervals
          and the cash and non-cash proceeds thereof;

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               (xix)  A  first  priority  security  interest,   subject  to  the
          Permitted  FINOVA Liens,  in all furniture,  appliances,  furnishings,
          machinery,  plumbing, heating,  ventilating, air conditioning systems,
          fixtures and equipment owned or hereafter  acquired by Borrower,  used
          or useful in connection  with,  and placed or to be placed on or under
          the Resort Property, the Units, the Encumbered Intervals or the Unsold
          Intervals and the cash and non-cash proceeds thereof; and

               (xx) The first priority  assignment of Borrower's interest in the
          Declaration,  to the greatest  extent  permitted under Mexican law and
          subject to the Permitted  FINOVA Liens, as provided under that certain
          Assignment of Declarant's Rights.

          (n)  Commitment.  The Loan  commitment  issued by Lender to  Borrower,
     dated September 28, 1999, and accepted by Borrower on October 1, 1999.

          (o) Commitment Fee. An amount equal to US$100,000.00, which was earned
     upon  Borrower's  acceptance of the  Commitment  and which has been paid in
     full by Borrower to Lender.

          (p) CR Cabos. Defined in the Introduction to this Agreement.

          (q) CR Cancun. Defined in the Introduction to this Agreement.

          (r) CR Capital.  CR Resorts  Capital,  S. de R.L. de C.V.,  a variable
     capital stock limited  liability  company  organized and existing under the
     laws of the United Mexican States.

          (s) CR Puerto Vallarta. Defined in the Introduction to this Agreement.

          (t) CR Remainder.  CR Resorts Remainder Company, S. de R.L. de C.V., a
     variable  capital stock limited  liability  company  organized and existing
     under the laws of the United Mexican States.

          (u)  Common   Furnishings.   All  fixtures,   furniture,   appliances,
     carpeting,  equipment  and  furnishings  located in the Units or  elsewhere
     within each of the Resorts.

          (v) Debtor Relief Laws. Any applicable  liquidation,  conservatorship,
     bankruptcy,  moratorium,   rearrangement,   insolvency,  reorganization  or
     similar law,  proceeding or device providing for the relief of debtors from
     time to time in effect and generally affecting the rights of creditors.

          (w) Declaration.  Collectively, with respect to the Club Regina Resort
     at Puerto Vallarta, the Declaration of Property Regime and its Regulations,
     formalized in public deed number 11,924,  dated August 8, 1997, recorded in
     the Public  Registry of Property  in the City of Puerto  Vallarta,  Mexico,
     with respect to the Club Regina  Resort at Los Cabos,  the  Declaration  of
     Property  Regime and its  Regulations,  formalized  in public  deed  number
     34708,  dated August 12, 1997,  recorded in the Public Registry of Property
     in the City of San Jose del Cabo,  Mexico,  with respect to the Club Regina
     Resort at Cancun,  the Declaration of Property Regime  formalized in public
     deed number 10973,  dated August 11, 1997,  recorded in the Public Registry
     in the city of Cancun, Mexico and its corresponding Regulations.

          (x)  Default.   An  event  or  condition,   the  occurrence  of  which
     immediately  is or, with the lapse of time or the giving of notice or both,
     becomes an Event of Default.

          (y) Default  Rate.  The Interest Rate plus two percent (2%) per annum;
     provided,  however,  that the  Default  Rate  shall in no event  exceed the
     highest interest rate permitted to be charged under applicable usury laws.

          (z) Eligible Notes  Receivable.  Those Pledged Notes  Receivable which
     satisfy each of the following criteria:

               (i) one or more of the entities  constituting the Borrower is the
          sole payee;

               (ii) it arises  from a bona fide sale by  Borrower  of one (1) or
          more Intervals in one of the Resorts;

               (iii)  the  Interval  sale  from  which  it  arises  has not been
          canceled  by  the  Purchaser,   any  statutory  or  other   applicable
          cancellation or rescission period has expired and the Interval sale is
          otherwise in total  compliance  with the terms and  provisions of this
          Agreement and all of the other Loan Documents;

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               (iv) it is secured by a properly executed and recorded Assignment
          of Pledged Notes  Receivable  and a properly  executed  Interval Lease
          Contract;

               (v)  principal  and  interest  payments  on it are payable to the
          Borrower in legal tender of the United States, provided, however, that
          up to thirty percent (30%) by number of all Eligible Notes  Receivable
          may be payable in Mexican Nuevos Pesos;

               (vi)  payments of  principal  and interest on it are due in equal
          monthly  installments (or in such other amounts to cover principal and
          interest);

               (vii) it shall have an  original  term of no more than sixty (60)
          months,  payable  in  equal  monthly  installments  of  principal  and
          interest;  provided,  however, that up to twenty-five percent (25%) of
          the aggregate  outstanding  balance of all Eligible  Notes  Receivable
          may, at any time, be comprised of Notes Receivable  having an original
          term of no more than eighty-four (84) months;

               (viii) a cash down payment  and/or other cash  payments have been
          received  from the  Purchaser in an amount  equal to at least  fifteen
          percent (15%) of the original  purchase price of the related Interval,
          and the  Purchaser  thereafter  shall have  received  no cash or other
          rebates of any kind which would cause the down payment to be less than
          fifteen percent (15%) of the total purchase price;

               (ix) no monthly  installment due with respect to the Pledged Note
          Receivable is more than thirty (30) days  contractually past due as of
          the date of  funding  of the  Initial  Advance  with  respect  to such
          Pledged Note  Receivable,  or more than sixty (60) days  contractually
          past due thereafter;

               (x) the weighted  average  interest  rate of all  Eligible  Notes
          Receivable  payable in legal  tender of the United  States at any time
          shall be not less than twelve percent (12.0%) per annum;

               (xi) the weighted  average  interest  rate of all Eligible  Notes
          Receivable  payable in Mexican  Nuevos  Pesos at any time shall be not
          less than twenty two percent (22.0%) per annum;

               (xii) the Purchaser of the related  Interval has immediate access
          to a Unit of the type  specified in such  Purchaser's  Interval  Lease
          Contract,  which  Interval  and  related  Unit  have  been  completed,
          developed and furnished in accordance with the specifications provided
          in the  Purchaser's  Interval  Lease  Contract,  the  public  offering
          statement  (if  any)  and  the  other  Timeshare  Documents;  and  the
          Purchaser has, subject to the terms of the Declaration, Interval Lease
          Contract and other  Timeshare  Documents,  complete  and  unrestricted
          access to the related Interval, Unit, Facilities and the Resorts;

               (xiii)  neither the  Purchaser  of the related  Interval  nor any
          other maker of the Note  Receivable  is an  Affiliate  of,  personally
          related to or employed by Borrower;

               (xiv)  the  Purchaser  or  other  obligor  has no  claim  against
          Borrower or any  Affiliate  of  Borrower,  and no defense,  set-off or
          counterclaim exists with respect to the Note Receivable;

               (xv) the  maximum  outstanding  principal  balance  of such  Note
          Receivable  does not exceed  US$25,000.00  (or the then  equivalent in
          Mexican  Nuevos  Pesos),  and  total  principal  balance  of all Notes
          Receivable   executed  by  any  one  (1)   obligor   will  not  exceed
          US$25,000.00 (or the then equivalent in Mexican Nuevos Pesos), without
          the prior written approval of Lender;

               (xvi) the Note Receivable is executed by a Mexican resident;

               (xvii)  the  original  of the  Note  Receivable  and all  related
          consumer  documents  have been  endorsed in the manner  prescribed  by
          Lender and delivered to Lender or its approved  agent (the "Agent") as
          provided in this Agreement,  and the terms thereof and all instruments
          related  thereto  shall  comply in all  respects  with all  applicable
          federal and state statutes, ordinances, rules and regulations;

                                       9
<PAGE>

               (xviii) the Unit in which the Interval being financed by the Note
          Receivable  is located  shall not be subject to any Lien which has not
          previously  been  consented  to in  writing  by Lender  other than the
          Permitted FINOVA Liens;

               (xix)  the  form of  promissory  note,  federal  truth-in-lending
          disclosure statement, if any, or other applicable disclosure, purchase
          contract and all other documents and instruments  corresponding to the
          Interval purchase  transaction giving rise to such Note Receivable has
          been approved in advance by Lender in writing;

               (xx) the  Purchaser  (a) is  entitled  to fifty (50)  consecutive
          years of use  (commencing  in 1997) in a specific  Unit type  during a
          specified  season at one of the three  locations  of the Resorts  each
          year  expiring in the year 2047,  which right shall be exercised for a
          seven (7) day period  each year for such fifty (50) year term,  or (b)
          is entitled to twenty-five  (25) biennual years of use  (commencing in
          1997) in a specific Unit type during a specified  season at one of the
          three locations of the Resorts  expiring in the year 2047, which shall
          be exercised for a seven (7) day period every  alternate year for such
          term;

               (xxi) the Purchaser may not accelerate their usage in the Resorts
          (provided, however, that certain Purchasers may accelerate their usage
          by a maximum of one (1) week per year,  provided that such  Purchasers
          pay all additional maintenance fees and any and all other fees related
          to such accelerated usage);

               (xxii) the Note  Receivable is  originated in connection  with an
          Interval  Lease  Contract and Borrower has provided  and/or caused all
          interest or lienholders  which have mortgages  encumbering the Resorts
          or  other  agreements  or  amendments  to  their  respective  security
          documents  which expressly  state to Lender's  satisfaction  that such
          interest or lienholder may not disturb the use rights of any Purchaser
          pursuant to such  Purchaser's  Interval  Lease Contract for so long as
          Purchaser  is not in default  pursuant  to the terms of such  Interval
          Lease Contract;

               (xxiii)  Lender is in possession of the executed  original  Notes
          Receivable  endorsed by Borrower  to Lender,  along with the  executed
          original   Interval  Lease  Contracts   corresponding  to  such  Notes
          Receivable;

               (xxiv) the Note  Receivable is  originated  in connection  with a
          related  Interval Lease Contract  whereby Land Trustee under a Mexican
          guaranty trust satisfactory to Lender holds legal title to each of the
          Resorts  on behalf  of CR Cabos,  CR  Cancun,  or CR Puerto  Vallarta,
          together with CR Remainder  (as to the  remainder  interest in each of
          the Resorts  commencing  under the FINOVA  Mortgages in the year 2047)
          and  whereby  non-disturbance  provisions  for the  continued  use and
          enjoyment by the Interval Purchasers of the Resorts and Facilities are
          in a form and substance acceptable to Lender; and

               (xxv) any and all release  payments  required under the inventory
          component of the FINOVA Loan  pertaining  to the  Interval  related to
          such Note  Receivable,  specifically  including  the  "Interval  Sales
          Payment"  as such term is defined in the FINOVA Loan  Agreement,  have
          been paid in full by Borrower.

          (aa)  Encumbered  Intervals.  The  Intervals  that are  subject to the
     Pledged Notes Receivable.

          (bb)  Environmental  Inspection.  An  engineering  report  or  reports
     covering each of the Resorts and/or Units, as specified below, confirming:

               (i) that soil  conditions  are sufficient to support the existing
          Units and any contemplated improvements to the Units;

               (ii) the absence of toxic or hazardous  substances at each of the
          Resorts;

                                       10
<PAGE>

               (iii)  that in  accordance  with any and all  applicable  Mexican
          laws, the engineering firm has obtained,  reviewed and included within
          its  report  statements  from  information  as Lender  may  reasonably
          require, all of which information shall confirm that there is no known
          or suspected  toxic or hazardous  waste site located at the Resorts or
          in  such   proximity   thereto  as  to  create  a  material   risk  of
          contamination of the Collateral.

          (cc) Environmental Laws. Any and all comparable  principles of Federal
     and local  pollution  control,  environmental  protection  or regulation or
     Hazardous  Materials  statutes or  ordinances  applicable  in Mexico or the
     States of Baja California Sur, Jalisco and Quintana Roo, Mexico  comparable
     to the following  laws of the United States of America:  the  Comprehensive
     Environmental Response,  Compensation and Liability Act of 1980, as amended
     from time to time ("CERCLA"), the Resource Conservation and Recovery Act of
     1976, as amended from time to time ("RCRA"),  the Superfund  Amendments and
     Reauthorization  Act of 1986,  as amended,  the federal  Clean Air Act, the
     federal Clean Water Act, the federal Safe  Drinking  Water Act, the federal
     Toxic   Substances   Control   Act,   the   federal   Hazardous   Materials
     Transportation  Act, the federal Emergency  Planning and Community Right to
     Know  Act  of  1986,  the  federal  Endangered  Species  Act,  the  federal
     Occupational  Safety and Health Act of 1970,  the federal  Water  Pollution
     Control Act, as all of the foregoing laws may be amended from time to time,
     and  any  rules  or  regulations  promulgated  pursuant  to the  foregoing;
     together with any similar  local,  state or federal  statutes,  ordinances,
     rules or regulations,  either in existence as of the date hereof or enacted
     or  promulgated  after  the  date  of  this  Agreement,  that  concern  the
     management,  control, storage, discharge, treatment,  containment,  removal
     and/or transport of Hazardous Materials or other substances that are or may
     become a threat to  public  health or the  environment;  together  with any
     common law theory involving Hazardous Materials or substances which are (or
     alleged  to be)  hazardous  to human  health or the  environment,  based on
     nuisance, trespass, negligence, strict liability or other tortious conduct,
     or any other federal, state or local statute,  regulation, rule, policy, or
     determination   pertaining  to  health,   hygiene,   the   environment   or
     environmental conditions.

          (dd) EPA. Defined in Section 4.1(f)(v)(C) of this Agreement.

          (ee)  Event of  Default.  Defined in  Section  8.1 of this  Agreement.

          (ff) Exchange Company.  Resort Condominiums,  International de Mexico,
     S. de R.L. de C.V.

          (gg) Facilities.  Any amenities,  recreational  facilities,  services,
     improvements,  real property,  improved or unimproved, or personal property
     at the  Resorts  which are part of the  Resorts,  other than the Units,  or
     which are made  available to Purchasers,  and including  those common areas
     and  facilities  of the three (3) separate  Westin  Regina  Hotels  located
     adjacent  to each of the three (3)  separate  locations  of the  Resorts in
     Cancun,  Puerto Vallarta and Los Cabos,  Mexico  available  pursuant to the
     terms of those certain three (3) separate Operating  Agreements executed by
     and between Starwood Cancun, S. de R.L. de C.V., Bancomer, S.A., CR Cancun,
     and CR Remainder as to the Cancun Resort,  Starwood Puerto Vallarta,  S. de
     R.L. de C.V.,  Bancomer S.A., CR Puerto Vallarta and CR Remainder as to the
     Puerto  Vallarta  Resort,  and  Starwood  Los  Cabos,  S. de R.L.  de C.V.,
     Bancomer,  S.A.,  CR Cabos,  and CR  Remainder  as to the Los Cabos  Resort
     (Collectively, the "Operating Agreements").

          (hh)  Financial  Statements.  The  tax  returns,  balance  sheets  and
     statements  of income and expense of Borrower and Guarantor and the related
     notes and  schedules  delivered  by Borrower  prior to the Closing Date and
     provided for in Section 6.3 of this Agreement; and the financial statements
     and reports of the Guarantor delivered to Lender prior to the Closing Date;
     and the monthly,  quarterly  and annual  financial  statements  and reports
     required  to be provided  to Lender  pursuant  to  Sections  7.1(h) of this
     Agreement.

          (ii) Financing  Statements.  Defined in Section 3.3 of this Agreement.

          (jj)  FINOVA.  FINOVA  Capital  Corporation,  a Delaware  corporation,
     together with its successors and assigns.

                                       11
<PAGE>

          (kk) FINOVA  Loan.  Collectively,  a  receivables  loan from FINOVA to
     Borrower  up to the  present  maximum  amount  of  Twenty  Million  Dollars
     (US$20,000,000.00)  and an inventory loan from FINOVA to Borrower up to the
     present maximum amount of Thirteen  Million Five Hundred  Thousand  Dollars
     (US$13,500,000.00)  as  provided  in  the  FINOVA  Loan  Agreement,  and as
     evidenced by a Receivables  Promissory  Note dated as of November 23, 1998,
     as amended from time to time, executed by Borrower and payable to FINOVA in
     the present  principal amount of Twenty Million Dollars  (US$20,000,000.00)
     and by an Inventory  Promissory Note dated as of April 23, 1999, as amended
     from  time to time,  executed  by  Borrower  and  payable  to FINOVA in the
     present  principal amount of Thirteen Million Five Hundred Thousand Dollars
     (US$13,500,000.00).

          (ll) FINOVA Loan  Agreement.  That certain  First Amended and Restated
     Loan and  Security  Agreement  dated as of April  23,  1999 by and  between
     FINOVA and Borrower, as amended from time to time.

          (mm) FINOVA  Mortgages.  As security  for the FINOVA  Loan,  the Trust
     Agreements  executed  by  Borrower  in favor of  FINOVA  registered  in the
     appropriate  property  records in the location of each of the Resorts,  and
     encumbering  the Resorts with a first  priority  mortgage  lien in favor of
     FINOVA by appointing  FINOVA as first  beneficiary in guaranty with respect
     to the trust use rights  (derechos  fideicomisarios  de uso) at each of the
     Resorts, as amended from time to time.

          (nn) GAAP.  Generally  accepted  accounting  principles,  applied on a
     consistent  basis,  as described in Opinions of the  Accounting  Principles
     Board of the American  Institute of Certified Public  Accountants and/or in
     statements of the Financial Accounting Standards Board which are applicable
     in the circumstances as of the date in question.  Notwithstanding  anything
     to the contrary provided in this Agreement,  Lender shall allow Borrower to
     comply,  at Borrower's  option,  with the Mexican  equivalent of the United
     States'  GAAP until  such  possible  time when  Lender,  in its  reasonable
     discretion, requests compliance with United States' GAAP.

          (oo) Governmental Agency. Defined in Section 7.1(w) of this Agreement.

          (pp)  Guarantor.  Raintree  Resorts  International,   Inc.,  a  Nevada
     corporation.

          (qq) Guaranty. A Payment Guaranty and Subordination Agreement executed
     by the Guarantor and delivered to Lender  concurrently with this Agreement.
     The Guaranty  shall be the absolute and  unconditional  guaranty of payment
     and  performance  of the Loan and all amounts  secured by or under the Loan
     Documents, as more fully set forth herein.

          (rr) Hazardous Materials.  "Hazardous  substances," "hazardous waste,"
     or  "hazardous  constituents,"  "toxic  substances"  or "solid  waste,"  as
     defined  in the  Environmental  Laws,  and  any  other  contaminant  or any
     material,  waste  or  substance  which is  petroleum  or  petroleum  based,
     asbestos,  polychlorinated  biphenyls,  flammable explosives or radioactive
     materials.

          (ss) ILSA. Defined in Section 6.13(b) of this Agreement.

          (tt)  Improvements.   All  Units,   Facilities  and  other  buildings,
     structures, recreational facilities and appurtenances now located on, or to
     be constructed on the Resort Property.

          (uu)  Indemnified  Lender  Parties.  Defined in Section 7.1(w) of this
     Agreement.

          (vv) Indenture. That certain Indenture,  dated as of December 5, 1997,
     by and between  Guarantor,  CR  Capital,  and IBJ  Schroder  Bank and Trust
     Company.

          (ww)  Intercreditor  Agreement.  That certain  agreement entered as of
     November 23, 1999 by and between  Lender,  FINOVA,  Borrower and  Guarantor
     relating to this Agreement,  the Textron Mortgages, the FINOVA Loan and the
     FINOVA Mortgages.

          (xx) Interest Rate. A variable  rate,  adjusted as of the first day of
     each calendar month, equal to the sum of the Prime Rate as of the first day
     of each calendar month, plus two percent (2.00%) per annum.

                                       12
<PAGE>

          (yy) Initial Advance. The first Advance under the Loan.

          (zz)  Interval  Lease  Contract.  A purchase  contract  or  membership
     agreement whereby a Purchaser purchases an Interval in one of the Resorts.

          (aaa)  Interval.  As  more  specifically  described  in the  Timeshare
     Documents and pursuant to the Declaration,  a right-to-use  interest in one
     of the Resorts that allows a Purchaser  to (i) occupy a specific  Unit type
     during a specified season at one of the three locations of the Resorts each
     year on a recurring  annual  basis over a period of fifty (50)  consecutive
     years, as set forth in each Purchaser's  Interval Lease Contract,  together
     with  all  related  membership  rights  to use the  Facilities  and  Common
     Furnishings,  or (ii) occupy a specific Unit type during a specified season
     at one of the three locations of the Resorts on a recurring  alternate year
     basis for (25)  biennual  years of use,  as set  forth in each  Purchaser's
     Interval Lease Contract, together with all related membership rights to use
     the Facilities and Common Furnishings.

          (bbb) Land Trustee.  Bancomer,  S.A.,  Institucion de Banca  Mulitple,
     Grupo  Financiero,  Direccion  Fiduciaria,  a Mexican  banking  corporation
     acceptable to Lender,  as trustee of the three separate Mexican land trusts
     (Fideicomisos)  established  pursuant to the Trust  Agreements  and holding
     legal title to the Resort Property.

          (ccc) Lien. Any interest in property securing an obligation owed to, a
     perfected  security interest in favor of, or valid claim by, a Person other
     than the owner of such property,  whether such interest arises in equity or
     is based on common law, statute or contract.

          (ddd) Loan. The maximum US$10,000,000.00 credit facility, as described
     in this Agreement.

          (eee)  Loan  Documents.  Collectively,  the  following  documents  and
     instruments,  as  each  may be  amended,  renewed,  extended,  restated  or
     supplemented from time to time:

               (i) This Agreement;

               (ii) the Note;

               (iii) the Textron Mortgages;

               (iv) the  Assignment  of Pledged  Notes  Receivable  and Interval
          Lease Contracts;

               (v) the Lockbox Agreement;

               (vi) the Servicing Agreement;

               (vii) the Environmental Indemnity Agreement;

               (viii) the Assignment of Interest in Contracts, Permits, Licenses
          and Approvals;

               (ix) the Guaranty;

               (x) the  Assignment  of  Borrower's  beneficial  interest  in any
          guaranteed trust;

               (xi) the  UCC-1  financing  statements  (or  Mexican  equivalent)
          covering the Collateral,  to be recorded with the Nevada  Secretary of
          State, the Texas Secretary of State, and in Harris County, Texas;

               (xii) the Assignment of Declarant's Rights;

               (xiii) the Assignment of Interest in Servicing Agreement;

               (xiv) Intercreditor Agreement; and

               (xv) such other agreements, documents, instruments,  certificates
          and  materials  as Lender  may  request  to  evidence  or  secure  the
          Obligations, to evidence and perfect the rights and Liens and security
          interests  of  Lender  contemplated  by  the  Loan  Documents  and  to
          effectuate the transactions contemplated herein.

                                       13
<PAGE>

          (fff)  Loan  Year.  The period  from the date of the  Initial  Advance
     through the last day of the next full twelve (12) calendar month period and
     each twelve (12) calendar month period thereafter.

          (ggg)  Lockbox  Agent.  A financial  institution  duly licensed in its
     jurisdiction of operation as may be approved by Lender in writing from time
     to time in Lender's  sole  discretion.  Lockbox Agent shall act as Lender's
     exclusive  agent for the  collection  of all  payments  made on the Pledged
     Notes Receivable, at Borrower's expense.

          (hhh)  Lockbox  Agreement.  A Lockbox  Agreement  or  Blocked  Account
     Agreement  among  Borrower,  Lender and  Lockbox  Agent,  pursuant to which
     Lockbox  Agent agrees to provide for the receipt and deposit of payments on
     the Notes Receivable and  disbursement of such payments to Lender,  as well
     as certain financial reporting services.

          (iii)  Management   Contract.   Defined  in  Section  4.1(w)  of  this
     Agreement.

          (jjj)  Mandatory  Prepayment.  Any  prepayment of the Loan required by
     Section 2.4(b) of this Agreement.

          (kkk) Material  Party.  Defined in Section  4.1(i) of this  Agreement.

          (lll) Mirror Notes.  Those Certain  promissory notes totaling,  in the
     aggregate,  Eighty-Three  Million Three Hundred  Forty-Six  Thousand  Three
     Hundred  Seventy-Two and 70/100 United States Dollars  (U.S.$83,346,372.70)
     issued by CR Cancun,  CR Cabos,  and/or CR Puerto Vallarta,  in favor of CR
     Capital.

          (mmm) Note. The Note Receivable Promissory Note.

          (nnn)  Note  Receivable.  A  promissory  note made and  executed  by a
     Purchaser  in  favor  of  Borrower  in  connection  with  such  Purchaser's
     acquisition of an Interval.

          (ooo) Note Receivable  Promissory Note. The promissory note evidencing
     the Loan,  dated as of the Closing  Date and made and  executed by Borrower
     and delivered to Lender concurrently with this Agreement.

          (ppp) Obligations.  All indebtedness,  liabilities,  obligations,  and
     responsibilities,  both  financial  and  otherwise,  to which  Borrower  is
     subject under any of the Loan  Documents,  including but not limited to all
     amounts  due or becoming  due to Lender with  respect to the Loan or any of
     the Loan Documents,  including  principal,  interest,  prepayment premiums,
     contributions,  taxes,  insurance premiums,  loan charges,  custodial fees,
     attorneys'  and  paralegals'  fees and  expenses and other fees or expenses
     incurred  by Lender or  advanced  to or on  behalf  of  Borrower  by Lender
     pursuant to any of the Loan Documents,  and the prompt and complete payment
     and performance by Borrower and Guarantor, of all obligations, indebtedness
     and  liabilities  pursuant  to this  Agreement,  or any of the  other  Loan
     Documents or otherwise.

          (qqq)  Operating  Contract.   As  defined  in  Section  6.20  of  this
     Agreement.

          (rrr) Payment Authorization Agreement.  The pre-authorized  electronic
     debit  agreement  by a  Purchaser  which  provides  for  payment  of a Note
     Receivable addressed to the Lockbox Agent.

          (sss) Pension Reform Act.  Defined in Section 6.16 of this  Agreement.

          (ttt) Permitted Debt.  This term shall mean,  collectively,  (i) short
     term  accounts  payable  incurred in  connection  with the operation of the
     Resorts  in  the  ordinary  course  of  business,  (ii)  the  financing  of
     time-share receivables denominated in Mexican Unidades de Inversion,  (iii)
     the Mirror Notes, and (iv) the FINOVA Loan.

          (uuu)  Permitted  FINOVA Liens . Those certain Liens  encumbering  the
     Resort  Property  and  certain of the  remaining  Collateral,  specifically
     including the FINOVA  Mortgages,  perfected in favor of FINOVA  pursuant to
     the FINOVA Loan.

          (vvv) Permitted Liens and  Encumbrances.  Those liens and encumbrances
     affecting  all or a portion of one or more of the  Resorts to which  Lender
     consents, as set forth on Exhibit B attached hereto and incorporated herein
     by this reference, and specifically including the Permitted FINOVA Liens.

                                       14
<PAGE>

          (www)  Person.  An  individual,   partnership,   corporation,  limited
     liability company, trust,  unincorporated  organization,  other entity or a
     government or agency or political subdivision thereof.

          (xxx)  Personal  Property.  All  equipment,  furniture,   furnishings,
     inventory, supplies, accounts, chattel paper and general intangibles at any
     time located at,  arising out of the use of and/or used in connection  with
     the operation of the Resort  Property,  together with the cash and non-cash
     proceeds thereof.

          (yyy) Plan. Defined in Section 6.16 of this Agreement.

          (zzz) Pledged Note  Receivable.  Any Eligible Note Receivable which at
     any time has been pledged to Lender by Borrower, pursuant to this Agreement
     or any of the other Loan Documents.

          (aaaa)  Prime  Rate.  The  prime  rate of  interest  as  announced  or
     published from time to time by Chase Manhattan Bank.

          (bbbb) Power of Attorney. Defined in Section 10.12 of this Agreement.

          (cccc) Preparer. Defined in Section 12.21(b) of this Agreement.

          (dddd)  Property  Contracts.  Defined in Section  1.1(m)(xvii) of this
     Agreement.

          (eeee) Purchase Price. The total purchase price of an Interval, as set
     forth in the Interval  Lease Contract and the Note  Receivable  relating to
     the purchase of such Interval.

          (ffff)  Purchaser.  Any Person who purchases one (1) or more Intervals
     and is the maker of one (1) or more Pledged Notes Receivable.

          (gggg) RCRA. Defined in Section 1.1(cc) of this Agreement.

          (hhhh) Resorts.  Collectively,  the three separate  timeshare projects
     consisting of, among other things,  the Resort Property,  commonly known as
     Club  Regina  Resort at Cancun  (located  in Cancun,  Mexico),  Club Regina
     Resort at Puerto  Vallarta  (located in Puerto  Vallarta,  Mexico) and Club
     Regina Resort at Los Cabos (located in Los Cabos, Mexico),  which presently
     consist of an aggregate of four hundred two (402) Units,  and the Intervals
     now existing or hereafter added in one (1) or more phases,  and all related
     Facilities, Common Furnishings and other appurtenances.

          (iiii) Resort  Property.  Collectively,  that certain real property of
     approximately  Ten  Thousand Two Hundred  Seventy-Six  and  Ninety-Six  One
     Hundredths (10,276.96) square meters located in Cancun Mexico, that certain
     real property of approximately Twenty-Four Thousand Nine Hundred Thirty-Six
     and Eight  Hundred  Nineteen One  Thousandths  (24,936.819)  square  meters
     located in Puerto  Vallarta,  Mexico,  and that  certain  real  property of
     approximately  Thirty-Eight  Thousand  Five  Hundred  Seventy  and Nine One
     Thousandths (38,570.009) square meters located in Los Cabos, Mexico, all as
     more fully described in Exhibit C, attached hereto and incorporated  herein
     by this reference together with all related and appurtenant property,  both
     real  and  personal,   amenities,   facilities,   furniture,   furnishings,
     equipment,  appliances, fixtures, easements, licenses, rights and interests
     as established by and more fully described in the Declaration and the other
     Timeshare Documents, as the same may be amended from time to time.

          (jjjj) RESPA. Defined in Section 6.13(b) of this Agreement.

          (kkkk)  Revolving  Credit  Period.  Defined  in  Section  2.1 of  this
     Agreement.

          (llll) Security. Shall have the same meaning as that ascribed to it in
     Section 2(1) of the Securities Act of 1933, as amended.

          (mmmm)  Service of  Process  Agent.  Defined in Section  12.23 of this
     Agreement.

          (nnnn) Servicing Agent.  Corporacion  Mexitur,  S. de R.L. de C.V., an
     affiliate of Borrower and Guarantor,  or other Person expressly  designated
     from time to time by Lender, in Lender's sole and absolute  discretion,  to
     provide reports pursuant to the Servicing Agreement,  at Borrower's expense
     (at a  current  market  rate as  agreed  to by  Borrower  and TBS  Business

                                       15
<PAGE>

     Services,  Inc.  in advance of the  Closing  Date).  Lender  shall have the
     right, in its sole and absolute  discretion,  to remove any Servicing Agent
     appointed  by Borrower  and require  that  Borrower  appoint a  replacement
     Servicing Agent that is  satisfactory  to Lender,  in its sole and absolute
     discretion.  For so long as Servicing Agent is Corporacion  Mexitur,  S. de
     R.L. de C.V., or is affiliated in any way with Borrower or Guarantor,  such
     Servicing  Agent shall provide to Lender  fidelity  insurance and any other
     insurance  policies  deemed  necessary by Lender,  in its sole and absolute
     discretion.  Under no  circumstances  shall  Borrower  or an  Affiliate  of
     Borrower  be the  Servicing  Agent  during  any  period of time in which an
     uncured Event of Default hereunder exists.

          (oooo)  Servicing  Agreement.  The Servicing  Agreement which has been
     executed or which shall be executed  prior to the Initial  Advance,  by and
     among  Lender,  Borrower and  Servicing  Agent,  providing for servicing of
     Pledged Notes Receivable and providing certain required reports.

          (pppp) Submissions. Defined in Section 12.21(a) of this Agreement.

          (qqqq) Survey. As Lender may require,  perimeter,  as-built surveys of
     each of the Resorts and the Units, as of a date no earlier than ninety (90)
     days prior to the Closing  Date,  with  signature  and seal of a registered
     engineer or surveyor  affixed thereto  showing all easements  affecting the
     Resort  Property and other matters  apparent  thereon,  the relation of the
     Resort  Property  to  public  thoroughfares  for  access  purposes  and the
     location of the proposed Improvements on the Resort Property and certifying
     that the Resort  Property is not in a flood hazard area (if  applicable  in
     Mexico),   together  with  a  legal  description  of  the  Resort  Property
     compatible  with said  survey and  sufficient  for  purposes of the Textron
     Mortgages. The survey shall be certified to Lender, as Lender may require.

          (rrrr)  Tenant  Income.   Defined  in  Section   1.1(m)(xvi)  of  this
     Agreement.

          (ssss) Tenant Leases. Defined in Section 1.1(m)(xv) of this Agreement.

          (tttt) Term. A period of sixty (60)  calendar  months from the Closing
     Date, plus the number of days from the Closing Date to the end of the month
     in which the Closing Date occurs.

          (uuuu)  Textron  Mortgages.   Collectively,  three  separate  properly
     recorded and perfected  mortgages  delivered by Borrower in favor of Lender
     securing the Loan and encumbering the Resort Property and all  Improvements
     (including  the Units,  all Interval  Lease  Contracts and, to the greatest
     extent permitted under United States and Mexican law, all Unsold Intervals)
     constructed  or to be  constructed  thereon,  subject only to the Permitted
     Liens and Encumbrances. The Textron Mortgages shall be of a second priority
     and exclusive (with the exception of the FINOVA Mortgages) as to the Resort
     Property (including all possible future phases, all amenities, improvements
     and  fixtures  now or  hereafter  located on the Resort  Property,  and all
     easements and other rights  appurtenant to the Resort Property now existing
     or to be constructed or renovated) and the Improvements. In accordance with
     Mexican law, Textron's Mortgages shall be perfected by recording amendments
     to the  existing  guaranty  Trust  Agreements  which  establish  the FINOVA
     Mortgages in order to add Lender as the second  beneficiary  in guaranty as
     to each of the Resorts,  with FINOVA remaining as the first  beneficiary in
     guaranty as to each of the Resorts. The documents establishing the guaranty
     Trust  Agreements  shall be amended under terms  acceptable to Lender,  the
     trustee of the guaranty Trust  Agreements  (the "Land  Trustee") shall be a
     bank acceptable to Lender,  and the Trust Agreements shall be recorded with
     the Public  Registries  of Property in the location of each of the Resorts.
     Each of the  three  separate  Trust  Agreements  establishing  the  Textron
     Mortgages shall be in the amount of US$10,000,000.00.  The Trust Agreements
     shall each  include an  acknowledgement  by Borrower and FINOVA to Lender's
     rights in and to the Resort  Property  and to Lender's  rights to the Notes
     Receivable  and  related  Interval  Lease  Contracts  and  Intervals  to be
     financed by Lender pursuant to the terms of this Agreement.

          (vvvv)  Timeshare Act. Any and all applicable  Mexican laws, rules and
     regulations  governing  the  creation and sale of  timeshare,  specifically
     including NOM-029-SCFI-1998 Commercial Information - Normative Elements for
     Time Sharing Services.

                                       16
<PAGE>

          (wwww) Timeshare Documents. All documents listed on Exhibit D relating
     to the Resorts and the creation,  marketing  and sale of  Intervals,  which
     shall consist of, but not be limited to, the following:

               (i) The public offering statements, if any, and any other reports
          or  registrations,  together with all exhibits and schedules  thereto,
          with  evidence  of  approvals  thereof  from  the  applicable  Mexican
          regulatory  authorities  related to the establishment and operation of
          each of the  Resorts and the sale of  Intervals  by Borrower in Mexico
          and in each other  jurisdiction  in which sales of Intervals are made,
          to the extent  such  public  offering  statements  and other  reports,
          registrations,  or approvals  are  required by  applicable  law.  With
          respect to the marketing and sale of Intervals in jurisdictions  other
          than  Mexico  for  which  Borrower  claims  that  no  registration  is
          required, Borrower shall deliver to Lender:

                    (A)  written  statements  from the  applicable  governmental
               authorities  confirming  that no such  registration  is  required
               where such applicable governmental authorities exist;

                    (B)  opinions  of  counsel  licensed  to  practice  in  such
               jurisdictions stating that no such registration is necessary; or

                    (C)  such   other   evidence   of   compliance   with   such
               jurisdictions'  statutes,  ordinances,  rules and  regulations as
               Lender may request.

               (ii) with respect to each of the Resorts, the Declaration and all
          amendments  thereto,   any  site  plan  and  any  easements  or  other
          instruments,  establishing  and describing the status of the Units and
          the Intervals,  and all amenities,  facilities,  services,  and common
          areas and elements related or appurtenant thereto;

               (iii) other registrations, approvals and permits for the creation
          and  sale of  Intervals  and  the  operation  of each of the  Resorts,
          including,  without limitation,  the Borrower's occupational and other
          business licenses relating to the Borrower or the Resorts,  samples of
          all advertising,  gift, prize and promotional materials,  and evidence
          of any required approvals thereof by the applicable Mexican regulatory
          authorities,  as well as copies of any  agreements  with the  Exchange
          Company and a list of all salespeople and sales managers in connection
          with  the sale of  Intervals,  together  with  evidence  that  each is
          properly licensed in accordance with applicable law; and

               (iv) all agreements  entered into by or on behalf of the Borrower
          including, without limitation, agreements regarding Purchasers' rights
          to use the Facilities and Common Furnishings,  and any agreements with
          any Affiliate or third party  related to  management,  operations  and
          maintenance of the Resorts, and any such agreements with Purchasers;

               (v) the form of all documents  used to market and sell  Intervals
          or  Encumbered  Intervals  or that  govern the  rights of  Purchasers,
          including  without  limitation,  purchase  contracts,  advertising and
          solicitation materials, Notes Receivable,  truth-in-lending disclosure
          statements or other  applicable  disclosure,  disclosures,  documents,
          acknowledgments, exchange club agreements, reservation agreements, and
          management agreements.

               Each Timeshare  Document shall be in form and content  acceptable
          to Lender,  in its sole  discretion.  Lender  shall have  received and
          approved true, correct and complete copies of the Timeshare  Documents
          as a condition precedent to any Advances hereunder.

          (xxxx)  Trust  Agreements.  Collectively  (i) with respect to the Club
     Regina Resort at Los Cabos, that certain  Irrevocable Trust Agreement dated
     as of August 18, 1997, by and between Desarrollos Turisticos Integrales, S.
     de R.L. de C.V., a Mexican limited responsibility corporation with variable
     capital   (predecessor-in-interest   to  CR  Cabos)  both  as  trustor  and
     beneficiary  with  respect to the Trust Use Rights,  the Land  Trustee,  as
     trustee, and Residual Beneficiary, as beneficiary with respect to the Trust
     Residual  Interest,  as  evidenced  by Public  Instrument  No. 55,  929, as
     amended by that certain Amendment to Irrevocable Trust Agreement,  dated as
     of November  28, 1997,  by and between CR Cabos,  Land Trustee and Residual
     Beneficiary,  as  evidenced by Public  Instrument  No.  51,158,  as further
     amended by that certain  Amendment to Irrevocable  Trust Agreement dated as
     of March 3,  1998 by and  between  CR  Cabos,  Land  Trustee  and  Residual

                                       17
<PAGE>

     Beneficiary,  as evidenced by Public Instrument No. 51,403,  and as further
     amended by that certain Amendment to Irrevocable Trust Agreement  (Convenio
     Modificatorio del Contracto de Fideicomiso  Irrevocable)  dated as of April
     26, 1999 evidenced by Public  Instrument No. 67,620 of Notary Public Number
     103 for the  Federal  District  of Mexico,  executed  by Land  Trustee,  as
     Trustee,  CR Cabos,  as  beneficiary  with respect to the Trust Use Rights,
     FINOVA, as beneficiary in guaranty with respect to the Trust Use Rights and
     Residual  Beneficiary,  as  beneficiary  with respect to the Trust Residual
     Interest,  as it may be from time to time  renewed,  amended,  restated  or
     replaced,  (ii) with  respect to the Club  Regina  Resort at  Cancun,  that
     certain  Irrevocable  Trust Agreement,  dated as of August 18, 1997, by and
     between  Promotora  Turistica  Nizuc,  S. de R.L. de C.V. a Mexican limited
     responsibility  corporation with variable capital  (predecessor-in-interest
     to CR Cancun) both as trustor and beneficiary with respect to the Trust Use
     Rights,  the  Land  Trustee,  as  trustee,   and  Residual  Beneficiary  as
     beneficiary  with respect to the Trust Residual  Interest,  as evidenced by
     Public  Instrument  No.  55,928,  as amended by that  certain  Amendment to
     Irrevocable Trust Agreement,  dated as of November 28, 1997, by and between
     CR Cancun,  Land Trustee and Residual  Beneficiary,  as evidenced by Public
     Instrument  No.  51,162,  as further  amended by that certain  Amendment to
     Irrevocable  Trust  Agreement  dated as of March 3, 1998 by and  between CR
     Cancun,  Land  Trustee and  Residual  Beneficiary,  as  evidenced by Public
     Instrument No. 51,404,  and as further amended by that certain Amendment to
     Irrevocable  Trust  Agreement  (Convenio  Modificatorio  del  Contracto  de
     Fideicomiso  Irrevocable)  dated as of April 26, 1999  evidenced  by Public
     Instrument  No. 67619 of Notary Public Number 103 for the Federal  District
     of Mexico,  executed by Land Trustee, as Trustee, CR Cancun, as beneficiary
     with respect to the Trust Use Rights,  FINOVA,  as  beneficiary in guaranty
     with  respect  to  the  Trust  Use  Rights  and  Residual  Beneficiary,  as
     beneficiary with respect to the Trust Residual Interest,  as it may be from
     time to time renewed, amended, restated or replaced, and (iii) with respect
     to the Club Regina  Resort at Puerto  Vallarta,  that  certain  Irrevocable
     Trust  Agreement,  dated as of August 18, 1997, by and between  Promotora y
     Desarrolladora   Pacifico,   S.  de  R.L.  de  C.V.,   a  Mexican   limited
     responsibility  corporation with variable capital  (predecessor-in-interest
     to CR Puerto Vallarta), both as trustor and beneficiary with respect to the
     Trust Use Rights, the Land Trustee, as trustee,  and Residual  Beneficiary,
     as beneficiary with respect to the Trust Residual Interest, as evidenced by
     Public  Instrument  No.  55,927,  as amended by that  certain  Amendment to
     Irrevocable Trust Agreement,  dated as of November 28, 1997, by and between
     CR Puerto Vallarta,  Land Trustee and Residual  Beneficiary as evidenced by
     Public  Instrument No. 51,159, as further amended by that certain Amendment
     to Irrevocable  Trust Agreement dated as of March 3, 1998 by and between CR
     Puerto  Vallarta,  Land Trustee and Residual  Beneficiary,  as evidenced by
     Public  Instrument  No.  51,405,  and as further  amended by  Amendment  to
     Irrevocable  Trust  Agreement  (Convenio  Modificatorio  del  Contracto  de
     Fideicomiso  Irrevocable)  dated as of April 26, 1999  evidenced  by Public
     Instrument No. 67,618 of Notary Public Number 103 for the Federal  District
     of Mexico,  executed  Land  Trustee,  as Trustee,  CR Puerto  Vallarta,  as
     beneficiary with respect to the Trust Use Rights, FINOVA, as beneficiary in
     guaranty with respect to the Trust Use Rights, and Residual Beneficiary, as
     beneficiary with respect to the Trust Residual Interest,  as it may be form
     time to time  renewed,  amended,  restated  or  replaced.  The  term  Trust
     Agreement shall mean any of the Trust Agreements.

          (yyyy) Unit. The individual  living units in a building in each of the
     Resorts,  together with all related or  appurtenant  interests in services,
     easements,  rights of access or other rights or  benefits,  as described in
     the Timeshare  Documents.  The Resorts presently consist of an aggregate of
     four hundred two (402) Units.

          (zzzz)  Unsold  Intervals.  All  Intervals  owned by  Borrower  at any
     particular  time within the Resorts and for sale in the ordinary  course of
     business.

          (aaaaa)  Voluntary  Prepayment.  Any voluntary  prepayment of the Loan
     permitted to be made by Borrower under the terms of this Agreement.

Section 2. THE LOAN.

     2.1 Loan. Except as may be expressly set forth herein to the contrary,  all
amounts  of money set forth  herein and in the Loan  Documents  shall be in U.S.
Dollars.  Upon  the  terms  and  subject  to the  conditions  set  forth in this
Agreement,  Lender shall advance to Borrower, and Borrower may borrow, repay and

                                       18
<PAGE>

reborrow,  principal  under the Loan to be funded in a series of Advances during
the initial  full  twelve  (12) month  period  following  the Closing  Date (the
"Revolving Credit Period") not to exceed an outstanding balance of the lesser of
US$10,000,000  or the  Borrowing  Base.  In  accordance  with the  provisions of
Section  4.2(c)(v) and Section  4.2(c)(vi) of this Agreement,  Advances would be
made in increments of at least  US$50,000 but not more often than twice a month.
As provided in Section 6.11  herein,  the proceeds of the Loan will be disbursed
by  Lender  solely  to pay for  Loan  Costs  (as  such  term is  defined  in the
Commitment),  to Borrower for  amortization  (principal or interest) of mortgage
and non-mortgage  debt owed by Borrower or by any Affiliates of Borrower and for
sales,  marketing,  working  capital,  project  development  and  administrative
expenses incurred in the operations for the Resorts, and for future expansion of
timeshare  development in accordance  with plans and  projections  acceptable to
Lender  (provided,  however,  that the use of the  proceeds of the Loan for such
expansion shall not adversely affect the operations of any of the Resorts).

     The maximum Loan amount  (exclusive of accrued but unpaid  interest)  which
may  be  outstanding  at  any  time  under  this  Agreement   shall  not  exceed
US$10,000,000.00,  and Lender shall have no  obligation  whatsoever  to make any
Advance which would cause the aggregate  outstanding  principal  balances of the
Loan to exceed US$10,000,000.00.  In the event that the proceeds of the Loan and
any other amounts required to be paid by Borrower  hereunder are insufficient to
fully pay all costs as contemplated  hereunder such proceeds will be applied, or
if the use of the Loan proceeds varies materially (as determined  reasonably and
in good faith by Lender) from the uses described herein,  then Lender shall have
no  obligation  to fund (or continue  funding) the Loan or any portion  thereof;
provided,  however,  that,  Borrower  shall be permitted to provide from its own
funds an amount  sufficient  to cover that portion of the Loan proceeds used for
uses materially varying from the uses described herein.

     2.2 Interest  Rate. The aggregate  principal  amount of all Advances of the
Loan which are outstanding from time to time shall bear interest at a rate equal
to the Interest Rate. The average monthly  outstanding  principal balance of the
Loan shall bear  interest in arrears as of Lender's  wiring of funds through its
receipt of  repayment  of the Loan (if  received  by Lender  later than 12 noon,
Eastern  Standard Time, then interest accrual shall be through the next Business
Day following such receipt).  Immediately upon the occurrence, but solely during
the  continuance,  of an Event of Default and after the Note Maturity  Date) (if
the Loan is not paid in full on the Note Maturity Date),  at Lender's  election,
in its sole discretion, the Loan shall bear interest at the Default Rate.

     2.3  Payments.  Borrower  agrees  punctually  to pay or cause to be paid to
Lender all principal  and interest due under the Note or otherwise  with respect
to the Loan. The Borrower shall make the following payments on the Loan:

          (a) Monthly  Payments.  Borrower  shall direct or otherwise  cause the
     makers of all Pledged Notes  Receivable to pay all monies due thereunder to
     the Lockbox Agent for deposit in the lockbox account  established  pursuant
     to the Lockbox  Agreement,  or as otherwise  required by Lender.  All funds
     from the Pledged Notes Receivable  shall be paid by Purchasers  directly to
     the Lockbox Agent.  Lockbox Agent shall disburse  proceeds  pursuant to the
     terms of the Lockbox Agreement. At least one (1) time per week, one hundred
     percent  (100%) of the  cleared  funds  collected  from the  Pledged  Notes
     Receivable,  if any, will be paid to Lender by the Lockbox Agent,  pursuant
     to the Lockbox  Agreement,  and will be applied by Lender in the  following
     order: (A) to the payment of costs or expenses  incurred by Lender pursuant
     to this  Agreement in creating,  maintaining,  protecting  or enforcing its
     Liens in and to the  Collateral and in collecting any amounts due to Lender
     in  connection  with the Loan;  (B) to any interest  accrued at the Default
     Rate;  (C) to the  payment of accrued and unpaid  interest at the  Interest
     Rate; and (D) to the reduction of the principal balance of the Loan. If the
     amount of the funds  received by Lender from the Lockbox Agent with respect
     to any month is  insufficient  to pay in full the amounts  provided  for in
     clauses (A), (B), and (C) of the preceding sentence for such month, without
     notice or demand,  Borrower shall pay the difference to Lender on or before
     last day of the month  following  interest  accrual.  In the event Borrower
     receives any payments on any of the Pledged Notes Receivable  directly from
     or on behalf of the maker or makers  thereof,  Borrower  shall  receive all
     such  payments in trust for the sole and exclusive  benefit of Lender;  and
     Borrower  shall deliver to the Lockbox Agent all such payments (in the form
     so received by Borrower) as and when  received by Borrower,  unless  Lender
     shall have  notified  Borrower to deliver  directly to Lender all  payments
     with  respect to the  Pledged  Notes  Receivable  which may be  received by
     Borrower,  in which event all such payments (in the form received) shall be
     endorsed  by  Borrower  to Lender and  delivered  to Lender  promptly  upon
     Borrower's receipt thereof.

                                       19
<PAGE>

          (b) Final Payment.  The entire  outstanding  principal  balance of the
     Loan,  together  with all  other  Obligations,  shall be paid in full on or
     before the first day of the  sixty-first  (61st) month following the end of
     the month in which the Closing Date occurs (the "Note Maturity Date").

     2.4 Prepayments.

          (a) Voluntary Prepayments.  Subject to the terms of this Agreement and
     the  payment  of the  applicable  prepayment  premium  set forth in Section
     2.4(c)  below,  Borrower may prepay the Loan,  in whole but not in part, at
     any time after the end of the first Loan Year,  upon thirty (30) days prior
     written notice to Lender.  In the event that Borrower  elects to prepay the
     Loan in full,  such  prepayment  must  include all  outstanding  principal,
     accrued  but unpaid  interest,  and all other  Obligations,  including  the
     applicable  prepayment  premium  provided in Section 2.4(c) below. The Loan
     may not be prepaid before the end of the first Loan Year.

          (b)  Mandatory  Prepayments.  If at any time and for any  reason,  the
     outstanding  unpaid  principal  balance of the Loan  exceeds the  aggregate
     amount of the  Borrowing  Base,  and Borrower  has not replaced  ineligible
     Notes Receivable with Eligible Notes Receivable, then, within ten (10) days
     following  Borrower's  receipt  of  telecopied  notice  from  Lender of the
     occurrence of such excess over Borrowing  Base, or, absent such  telecopied
     notice,  within  fifteen (15) days after the end of the  calendar  month in
     which such excess  first  occurred,  Borrower  shall  either (A) prepay the
     principal balance of the Loan in an amount equal to the difference  between
     the aggregate principal balance of the Loan and the amount of the Borrowing
     Base;  or (B) increase the  aggregate  principal  amount of Eligible  Notes
     Receivable pledged to Lender so that the amount of Borrowing Base equals or
     exceeds the aggregate outstanding principal balance of the Loan. The pledge
     and delivery to Lender of additional Eligible Notes Receivable shall comply
     with the  document  delivery  and  recordation  requirements  set  forth in
     Section  4.2 of this  Agreement  and  shall  be  accompanied  by a  written
     certification of Borrower to the effect that such additional  Pledged Notes
     Receivable  are Eligible Notes  Receivable  and that,  giving effect to the
     pledge to Lender of such Eligible Note Receivable,  the outstanding  unpaid
     principal balance of the Loan is equal to or less than the aggregate amount
     of the Borrowing  Base. If Borrower  elects to prepay the excess  principal
     balance of the Loan pursuant to this Section 2.4(b), no prepayment  premium
     shall be due Lender in connection with such prepayment.

          (c)  Prepayment  Premiums.  Any  prepayment  of the Loan  pursuant  to
     Section  2.4(a)  above  must  be   accompanied  by  a  prepayment   premium
     calculated, as of the date of such prepayment, as follows:

          Date of Prepayment                          Premium

          Loan Year Two                      Three  percent  (3%) of the then
                                             outstanding  balance  of the Loan

          Loan Year Three                    Two percent  (2%) of the then
                                             outstanding  balance of the Loan

          Loan Year Four                     One percent  (1%) of the then
                                             outstanding  balance of the Loan

          Thereafter                         Zero (0)

          No  prepayment  premium  shall  be  payable,  and  there  shall  be no
     prepayment  prohibition at any time, in connection  with (i) any prepayment
     of the  principal  balance of the Loan which arises from the  prepayment of
     one or more Eligible Notes  Receivable by its maker or makers,  or (ii) any
     prepayment  of the  principal  balance  of the Loan which  arises  from the
     casualty or  condemnation  at one or more of the Resorts where the Borrower
     is not required to rebuild.

     2.5 Guaranty.  Payment and  performance by Borrower of one hundred  percent
(100%) of all of the  Obligations  (including one hundred  percent [100%] of the
outstanding principal,  plus one hundred percent [100%] of all accrued interest,
late charges,  attorneys'  fees, and other charges arising under the Loan) shall
be unconditionally  guaranteed by the Guarantor, in accordance with the terms of
this Agreement, the Note and the Guaranty.

                                       20
<PAGE>

Section 3. COLLATERAL.

     3.1 Grant of Security  Interest.  To secure the payment and  performance of
the Obligations,  for value received,  Borrower  unconditionally and irrevocably
assigns,  pledges  and grants to Lender a  continuing  first  priority  security
interest in and to the Collateral, subject to the Permitted FINOVA Liens.

     3.2 Security  Interest in All Pledged Notes  Receivable  and Interval Lease
Contracts.  Notwithstanding  that Lender may be obligated,  subject to the terms
and  conditions  set forth in the Loan  Documents,  to make  Advances  only with
respect to Eligible Notes  Receivable,  Lender shall have a continuing  security
interest in all of the Pledged  Notes  Receivable  and  related  Interval  Lease
Contracts relating to such Pledged Notes Receivable and may collect all payments
made under or with respect to all Pledged Notes  Receivable and related Interval
Lease Contracts, including Eligible Notes Receivable that may become ineligible,
until any of the same may be released by Lender,  if at all, pursuant to Section
12.10 below.

     3.3 Perfection of Security. Borrower agrees, at its own expense, to execute
the financing  statements or applicable  security agreements under United States
or  applicable  Mexican  law,  if  any,  provided  for by the  Code  ("Financing
Statements"),  together with any and all other instruments or documents,  and to
take such  other  action as may be  required  to  perfect  and to  continue  the
perfection  of  Lender's  security  interests  in  the  Collateral  and,  unless
prohibited by law,  Borrower  hereby  authorizes  Lender to execute and file any
such Financing Statements on Borrower's behalf.  Borrower further agrees, at its
own expense,  to execute any and all  instruments  or documents and to take such
other  action as may be required to perfect and to continue  the  perfection  of
Lender's  security  interests  in the  Collateral  under  Mexican  law and under
applicable laws of the United States.

     3.4 Location of Collateral.  All tangible Collateral (other than Collateral
delivered  to Lender or the  Lockbox  Agent)  which is  personal  property is to
remain,  at all times,  within the  Resorts,  and  Borrower may not transfer the
Collateral from such premises without the prior written approval of Lender.

     3.5 Insurance and Protection of Collateral. Borrower agrees to maintain and
pay for insurance upon all Collateral wherever located (whether in storage or in
transit) covering risks in such amounts and with such insurance  companies as is
provided in Section 7.1(d) hereof.

     3.6 Protection of Collateral;  Reimbursement. The portion of the Collateral
consisting  of (i) the  original  Pledged  Notes  Receivable;  (ii) the original
Interval Lease Contracts (including any addenda thereto) related to such Pledged
Notes   Receivable;   and  (iii)   originals  or  true  copies  of  the  related
truth-in-lending  disclosure statements, if any, or other applicable disclosure,
and  if  required  by  Lender,   loan  applications,   the  related  Purchaser's
acknowledgments, receipts, the Payment Authorization Agreements and the Exchange
Company applications and disclosures, shall be delivered, at Borrower's expense,
to  Lender  at its  East  Hartford,  Connecticut  office  and  held in  Lender's
possession and control until the Obligations are fully satisfied. Borrower shall
pay to Lender, at the time of each Advance, a one-time custodial fee of US$10.00
for each  Pledged  Note  Receivable  (and  related  Collateral)  delivered  into
Lender's physical possession.  The portion of the Collateral delivered to Lender
as described above shall be segregated by Lender and stored in a  fire-resistant
filing cabinet.  Borrower and the Guarantor agree that such storage is and shall
be  deemed  to  constitute  reasonable  care  by  Lender  with  respect  to such
Collateral. All insurance expenses and all expenses of protecting the Collateral
including  without  limitation,   storing,   warehousing,   insuring,  handling,
maintaining  and  shipping  the  Collateral,  and any and all excise,  property,
intangibles,  sales  and use  taxes  imposed  by any  state,  federal  or  local
authority on any of the  Collateral or with respect to the sale thereof shall be
paid by Lender from the custodial fee referenced  above.  Any and all other sums
for which  Borrower  may  become  liable  hereunder  and all costs and  expenses
(including  attorneys'  and  paralegals'  fees,  legal expenses and court costs)
which  Lender may incur in enforcing  or  protecting  its Lien on, or rights and
interest  in,  the  Collateral  or any of its  rights  or  remedies  under  this
Agreement or any other Loan Document or with respect to any of the  transactions
to be had  hereunder  or  thereunder,  until  paid by  Borrower  to Lender  with
interest at the Default Rate,  shall be included among the  Obligations  and, as
such,  shall be secured by all of the  Collateral.  Provided that Lender retains
the original  Pledged  Notes  Receivable  and originals or copies of the related
Timeshare  Documents  delivered  to it in a  fire-resistant  filing  cabinet  as
provided  above,  Lender shall not be liable or  responsible  in any way for the
safekeeping  of any of the  Collateral or for any loss or damage  thereto or for

                                       21
<PAGE>

any  diminution  in  the  value  thereof,  or for  any  act  or  default  of any
warehouseman,  carrier, forwarding agency, the Lockbox Agent, Servicing Agent or
any other Person whomsoever,  excluding damages or losses that occur as a result
of Lender's gross negligence or willful misconduct.

     3.7 Cross-Collateralization and Default. The Collateral shall secure all of
the Obligations. All Liens, pledges, assignments,  mortgages, security interests
and  collateral  granted by Borrower  to or for the  benefit of Lender  pursuant
hereto or any other  related  documents  or  instruments  shall also  secure the
Obligations. In addition, all other loans of any type made by Lender to Borrower
and any Affiliate of Borrower shall be cross-collateralized and cross-defaulted.

Section 4. CONDITIONS PRECEDENT TO THE CLOSING AND FUNDING PROCEDURE.

     4.1  Conditions  Precedent.  The  obligation  of Lender to enter  into this
Agreement and to fund the Loan shall be subject to the  satisfaction  of each of
the conditions precedent set forth in the Commitment,  in addition to all of the
conditions  precedent set forth below and elsewhere in the Loan  Documents on or
before the Closing Date:

          (a) Loan Documents.  On or prior to the Closing Date, Borrower and the
     Guarantor shall execute and deliver (or cause to be executed and delivered,
     as the case may be) to Lender, the Loan Documents.

          (b) Title. To the extent  available,  a title insurance policy in form
     acceptable to Lender, or to the extent such a title insurance policy is not
     available,   a  satisfactory  legal  opinion  or  certification  issued  by
     qualified real estate counsel or Mexican notary  acceptable to Lender which
     confirms that satisfactory security documents,  specifically  including the
     Textron Mortgages,  are recorded in the appropriate registry, and that such
     security  documents  create a first  priority  lien,  subject to the FINOVA
     Mortgages, in and to the Resort Property in the amount of the Loan, subject
     only to such exceptions and conditions to title which are listed in Exhibit
     B to this Agreement (the "Permitted Liens and  Encumbrances").  Each of the
     Resorts  shall be placed in a Mexican land trust  (fideicomiso)  subject to
     the Trust  Agreements in form and substance  that are  acceptable to Lender
     and which are subject to the rights of Interval  Purchasers pursuant to the
     Declaration  and the  Timeshare  Documents.  The condition of title must be
     satisfactory to Lender in all respects. An updated opinion or certification
     may be required prior to any subsequent Advance. Title certification issued
     by a notary shall be in a form acceptable to Lender.

          (c) Opinions of Counsel.  Lender shall have  received from counsel for
     Borrower and the  Guarantor,  licensed in the United  Mexican States of the
     United States of America, as appropriate, and acceptable to Lender, closing
     opinions  in form and  substance  satisfactory  to Lender,  dated as of the
     Closing Date,  covering such items as may be required by Lender,  including
     without  limitation,  (i) that the Loan  Documents  are valid,  binding and
     enforceable in accordance with their terms and that they do not violate any
     applicable  usury (if any) or other  applicable  laws,  the  procedures and
     requirements  which must be  satisfied by Borrower in  connection  with the
     making of withholding payments to the Mexican taxing authorities,  that the
     Borrower  and the Resorts and the  Resorts'  intended  uses comply with all
     timeshare and other applicable statutes, ordinances, rules and regulations,
     that each of the Resorts and the Resort Property are in compliance with all
     applicable Environmental Laws, that Borrower and the Resort Property are in
     compliance with all applicable statutes,  ordinances, rules and regulations
     governing the marketing and sale of timeshare  Intervals  (confirming  that
     each of the  Resorts  has been  properly  registered  with the  appropriate
     Mexican  governmental  authorities) and that the Timeshare Documents comply
     with all applicable  statutes,  ordinances,  rules and regulations and have
     been properly  recorded as required under the applicable laws of the United
     Mexican States,  (ii) that Guarantor is duly established  under the laws of
     Nevada and is authorized to execute this  Agreement and the remaining  Loan
     Documents,  and (iii)  that the Loan is  "Permitted  Debt" (as such term is
     defined in the Indenture) and is otherwise allowed pursuant to the terms of
     the Indenture.

          (d)  Representations,   Warranties,   Covenants  and  Agreements.  The
     representations  and warranties  contained in the Loan Documents and in any
     certificates  delivered to Lender in  connection  with the closing shall be
     true and correct in all material respects, and all covenants and agreements
     to have been complied with and performed by Borrower as of the Closing Date
     shall have been fully  complied with and performed to the  satisfaction  of
     Lender.

                                       22
<PAGE>

          (e) No  Prohibitions.  Neither  Borrower nor the Guarantor  shall have
     taken any action or permitted any  condition to exist,  the result of which
     action or condition  continues  to exist as of the Closing Date and,  would
     have been prohibited by any provision of this Agreement or the Commitment.

          (f) Background Documents.  Borrower shall have delivered to Lender and
     Lender  shall  have  approved  each  of the  following  (collectively,  the
     "Background Documents"):

               (i)  Borrower's  Organizational  Documents.  Copies of Borrower's
          organizational and corporate  documents,  including but not limited to
          its articles of organization and bylaws,  partnership certificates and
          agreements,  together  with any  amendments  thereto  and  evidence of
          filing  of  appropriate  documentation  with  the  appropriate  Public
          Registries in Mexico,  certified to be true and complete by Borrower's
          secretary;

               (ii)   Good   Standing   Certificate.   Current   good   standing
          certificates or mercantile folio  certificates  issued for Borrower by
          the  government  of Mexico and by the Public  Registry of Property and
          Commerce in any state in which  Borrower is  qualified to do business,
          to the extent available in Mexico;

               (iii) Resolutions.  Certified  resolutions of Borrower's board of
          directors  authorizing  the  execution of all Loan  Documents  and the
          performance  of all  Obligations  thereunder,  to the extent  required
          under Mexican law and by the bylaws of Borrower;

               (iv)  Survey.  Three (3) original  copies of  perimeter  as-built
          surveys of the Resort Property, dated within ninety (90) days prior to
          the Closing  Date,  satisfactory  to Lender and prepared by a licensed
          surveyor  satisfactory  to  Lender  and in  accordance  with  Lender's
          requirements,  with the signature and seal of a registered engineer or
          surveyor affixed  thereto,  showing the location and dimensions of all
          Units,  foundation  perimeters,   Facilities  and  other  Improvements
          thereon and indicating the location of proposed improvements (if any),
          the  routes of ingress  and  egress  for public  access to each of the
          Resorts,  all  utility  lines,  walks,  drives,  recorded  or  visible
          easements and  rights-of-way on the Resort Property,  and showing that
          there are no  encroachments,  improvements,  projections  or easements
          (recorded  or  unrecorded)  on the  property  lines.  The survey shall
          certify the surface  area of the Resort  Property  and shall  indicate
          whether the Resort  Property is located  within any flood hazard area.
          The survey must be prepared in accordance with the standards set forth
          by  ALTA/ACSM  and those of any and all Mexico  Surveyors'  bureaus or
          associations as well as any and all  regulations or applicable  local,
          state and federal law and must be certified to Lender.  The surveyor's
          certificate  placed on the survey shall include a legal description of
          the Resort  Property  compatible  with the Survey and  sufficient  for
          purposes  of the  Textron  Mortgages,  and  shall  include  any  other
          information  required by Lender.  Similar  surveys  shall be furnished
          from time to time upon the reasonable  request of Lender, but not more
          often than once per year, which shall show the actual locations of the
          Improvements on the Resort Property.  A final as-built survey shall be
          furnished to Lender after all future  Improvements  are  completed (if
          any);

               (v) Environmental Report. Lender reserves the right to require in
          its discretion an Environmental Inspection or reports covering each of
          the Resorts  prepared by an  engineering  firm  acceptable  to Lender,
          including  all real  property  and  personal  property  intended to be
          subject to the Timeshare Documents, confirming:

                    (A) that soil conditions are sufficient to support  existing
               improvements  and any  contemplated  Improvements  to the  Resort
               Property, and confirming the absence of sinkholes;

                    (B)  the  absence  of  Hazardous   Materials  on,  under  or
               affecting  the  Resort  Property  or any other real  property  or
               personal property comprising the Resorts;

                                       23
<PAGE>

                    (C) that the  engineering or  environmental  consulting firm
               has obtained,  reviewed and included  within its report a CERCLIS
               printout from the Environmental  Protection Agency (the "EPA") or
               equivalent Mexican  authority,  if such authority and such report
               exist,  statements from the EPA or equivalent  Mexican  authority
               and other applicable  state and local  authorities and such other
               information  as  Lender  may  reasonably  require,  all of  which
               information  shall  confirm  that there are no known or suspected
               Hazardous   Materials   located  at  or  used  or  stored  on  or
               transported to or from, the Resorts or in such proximity  thereto
               as to create a material risk of contamination of the Collateral;

                    (D) the  absence  of radon  gas at the each of the  Resorts,
               including  all of the  Units,  or,  if  radon  gas is found to be
               present  in any  part of the  Resorts  or the  Units,  that  such
               presence  is of a  nature  or  magnitude  so as  to be  fully  in
               compliance with applicable standards under the Environmental Laws
               and all other laws or standards applicable to the Resorts; and

                    (E) the absence of asbestos within the Units,  Facilities or
               elsewhere at each of the Resorts,  or, if asbestos is found to be
               present in any part of the  Resorts,  that such  presence is of a
               nature or  magnitude  which is able to be  removed  by a licensed
               removal  contractor for a guaranteed  maximum sum satisfactory to
               Lender.  The costs of all inspections  and corrective  procedures
               shall be borne by the Borrower.

               (vi) Soil  Tests.  Lender  reserves  the right to  require in its
          discretion a report as to soil and  compaction  condition and analysis
          made at the Resort  Property by a soil  testing firm  satisfactory  to
          Lender. The number and location of such borings shall be in accordance
          with the  recommendations  of the soil  testing  firm and must also be
          satisfactory  to Lender and also shall include a sinkhole  analysis of
          each of the Resorts.  The report shall include the  recommendations of
          the soil  testing  firm as to the  preparation  of the soil  needed in
          order to  adequately  support the  Improvements.  During the course of
          construction,  Borrower shall also provide such reports as to concrete
          tests and such additional soil tests as Lender reasonably may require;

               (vii) Physical Inspection.  An independently  prepared structural
          and mechanical  engineering  report  prepared by an  engineering  firm
          acceptable  to  Lender  covering  each of the  Resorts  and the  Units
          confirming  that  the  Units  and the  remainder  of the  Resorts  are
          mechanically  and  structurally  sound. If Borrower shall be unable to
          satisfy the  requirements of this paragraph  within one hundred eighty
          (180)  days   following  the  date  of  receipt  by  Borrower  of  the
          aforementioned  structural and mechanical  engineering report,  Lender
          shall  have the  right to  terminate  the Loan or,  alternatively,  to
          require  corrective  procedures  satisfactory  to it.  The cost of all
          inspections,  reports and  corrective  procedures  with respect to the
          mechanical and structural condition of the Resorts and the Units shall
          be borne entirely by Borrower.

          (g) Evidence of Insurance. Lender shall have received certified copies
     of all  insurance  policies  and  endorsements  thereto  or other  evidence
     satisfactory to Lender, in its sole discretion,  that Borrower has obtained
     and is maintaining all policies of insurance  required by and in accordance
     with Section 7.1(d) hereof, including but not limited to copies of the most
     current paid insurance premium invoices for such policies.

          (h) Applicable Laws. Lender shall have received evidence  satisfactory
     to Lender that all existing and  contemplated  Improvements  at each of the
     Resorts are and will be in compliance with all applicable zoning,  building
     and other  Mexican  laws,  if any,  in  connection  with the  construction,
     development,  establishment and operation of the Resorts and the sale, use,
     marketing and occupancy of Units and Intervals; provided, however, that the
     approval of the  Timeshare  Documents  and  Borrower's  sales and marketing
     efforts in respect  thereof shall have been  obtained from the  appropriate
     Mexican  governmental  authority  prior  to the  sale of any  Interval.  In
     addition,  on or before  the  Closing  Date,  Lender  shall  have  received
     evidence   satisfactory  to  Lender  that  all  existing  and  contemplated
     Improvements  are and will be in  compliance  with all  applicable  zoning,
     building  and  other  Mexican   laws,  if  any,  in  connection   with  the
     construction,  development,  establishment and operation of the Resorts and
     the sale,  use  marketing and  occupancy of Units and  Intervals.  Borrower

                                       24
<PAGE>
     shall  provide  evidence   satisfactory  to  Lender   confirming  that  all
     approvals, consents, licenses and permits necessary to create the Intervals
     and to provide  time-share  services in compliance  with Mexican law and to
     operate,  use and market  Intervals  at the  Resorts  under the  time-share
     system have been obtained, including, but not limited to, permits issued by
     the Mexican Consumer Protection Agency and the Mexican Ministry of Commerce
     and Industrial Development.

          (i)  Litigation.  Other than those  particular  matters  described  in
     Exhibit E hereto,  there shall be no  bankruptcy,  suspension  of payments,
     foreclosure  action or other  material  litigation or judgments  pending or
     outstanding  against  any of the  Resorts,  the Units,  any  portion of the
     Collateral,  the  Borrower,  any  general  partner  or  shareholder  of the
     Borrower,  Guarantor,  any general partner or shareholder of Guarantor, the
     managing  agent for each of the  Resorts  or the  Affiliates  of any of the
     foregoing (each a "Material Party").  The term "other material  litigation"
     as used herein shall not include  matters in which (i) a Material  Party is
     plaintiff and no counterclaim is pending; or (ii) Lender determines, in its
     sole  discretion,  that such  litigation is immaterial  due to  settlement,
     insurance  coverage,  frivolity  or amount or nature of claim.  Lender  (or
     Borrower,  upon the request of Lender) shall have  obtained an  independent
     search,  at  Borrower's  expense,   confirming  that  no  such  bankruptcy,
     foreclosure action or other material litigation or judgment exists.

          (j) Loan  Documents.  On or prior to the Closing  Date,  Borrower  and
     Guarantor shall execute and deliver (or cause to be executed and delivered,
     as the case may be) to Lender, the Loan Documents.

          (k)  UCC/Other  Searches.  Lender shall have obtained such searches of
     the applicable public records as it deems necessary under Mexican and other
     applicable  laws  to  verify  that  Lender  shall  have a first  and  prior
     perfected  Lien  and  security  interest  covering  all of the  Collateral,
     subject to the  Permitted  FINOVA  Liens.  Lender shall not be obligated to
     fund any  Advance  if Lender  determines  that it does not have a first and
     prior  perfected  lien and  security  interest  covering any portion of the
     Collateral, subject to the Permitted FINOVA Liens. Notwithstanding anything
     to the contrary as provided in this Section 4.1(k), Lender acknowledges and
     understands that the Textron  Mortgages serve as second priority  mortgages
     on the Resort Property, subject to the first priority FINOVA Mortgages.

          (l) Taxes and  Assessments.  Lender shall have received  copies of the
     most  current tax bills  related to the Units,  the  Intervals,  the Resort
     Property and the  remainder of each of the Resorts,  together with evidence
     satisfactory to it that all taxes and assessments  either owed by Borrower,
     or for the collection of which  Borrower is responsible  have been paid, or
     will be paid out of closing proceeds,  which taxes and assessments include,
     without  limitation,  sales taxes,  room  occupancy  taxes,  payroll taxes,
     personal  property taxes,  excise taxes,  intangible  taxes,  real property
     taxes,  income  taxes,  and any  assessments  related to the Resorts or the
     Units. Lender shall also have received  information  satisfactory to Lender
     disclosing the tax identification numbers, tax rates, estimated tax values,
     assessment  ratios and estimated  assessment values or amounts with respect
     to each of the Resorts and the Resort  Property and the  identities  of the
     taxing authorities having jurisdiction over the Resort Property and Resorts
     as  well  as the  instrumentalities  and  entities  having  the  power  and
     jurisdiction  to impose  assessments  against  the Resort  Property  or the
     Resorts, and evidence  satisfactory to Lender to demonstrate that the Units
     and Intervals, if applicable,  have been segregated from all other property
     on the applicable municipal tax rolls and assessment rolls.

          (m) Financial Statements.  Lender shall have received and approved the
     Financial  Statements  required  pursuant  hereto and the  Commitment to be
     delivered to Lender on or before the Closing Date, or otherwise required by
     Lender,  for  Borrower  and  the  Guarantor,  all  in  form  and  substance
     satisfactory  to  Lender,   specifically   including   certified  financial
     statements for the year ending 1998 for the Borrower and the Guarantor.

          (n) Preclosing  Inspections.  Lender shall have conducted and approved
     due diligence  investigations  of Borrower,  the  Guarantor,  the Timeshare
     Documents and each of the Resorts.

          (o) Proceedings Satisfactory. All actions taken in connection with the
     execution or delivery of the Loan  Documents,  and all documents and papers
     relating  thereto,  shall be  reasonably  satisfactory  to  Lender  and its
     counsel.  Lender  and  its  counsel  shall  have  received  copies  of such
     documents  and papers as Lender or such counsel may  reasonably  request in
     connection therewith,  all in form and substance satisfactory to Lender and
     its counsel.

                                       25
<PAGE>

          (p) Expenses.  Borrower  shall have paid all fees,  expenses and other
     amounts  required  to be paid  prior  to or at  closing,  pursuant  to this
     Agreement;  provided, however, that Borrower shall be permitted to pay such
     fees, expenses and other amounts from the proceeds of the Initial Advance.

          (q) Intentionally omitted.

          (r) Credit  References.  Borrower  shall have caused such creditors as
     requested by Lender to furnish Lender  directly (by mail) with  independent
     credit references for Borrower,  the Guarantor,  the principals of Borrower
     and   Guarantor,   and  any  other  Material  Party  in  form  and  content
     satisfactory to Lender,  in its sole discretion.  Lender reserves the right
     to request  additional  credit  references on any Material  Party as Lender
     deems necessary in its sole discretion.

          (s)  Utilities.   Letters   addressed  to  Lender  or  other  evidence
     reasonably   acceptable  to  Lender   demonstrating  the  availability  and
     sufficiency of water,  sewer,  electric,  telephone and natural gas utility
     services to satisfactorily service each of the Resorts.

          (t)  Permits  and  Approvals.   Building  permit(s)  and  satisfactory
     evidence  that the Resort  Property and the  Improvements  and the intended
     uses of the Resorts are in  compliance  with any and all  applicable  laws,
     regulations   and   ordinances,    including,   without   limitation:   (i)
     Environmental Laws; (ii) erosion control ordinances;  (iii)  doing-business
     and/or  licensing  laws;  (iv)  laws  protecting  disabled  or  handicapped
     persons;  and (v) any zoning laws (in this regard,  the evidence  submitted
     should  include  (A) the zoning  designation  made for the Resort  Property
     (where available or applicable by local Mexican laws and regulations);  (B)
     zoning  requirements  as to  parking,  lot size,  ingress  and  egress  and
     building  setbacks,  and (C) the length of time of the validity of all such
     approvals,  variances  and  permits).  Such  evidence may include  letters,
     licenses,   permits,   certificates  and  other   correspondence  from  the
     appropriate  governmental  authorities,  opinions of Borrower's attorney or
     other attorneys and opinions or certifications  from Borrower's  architect,
     as Lender may  determine,  letters  from  utility  companies,  governmental
     entities  or  other  Persons,   or   certification  by  Borrower  or  other
     confirmation  acceptable to Lender,  confirming that water, sewer (sanitary
     and storm), electricity, gas, solid waste disposal, telephone, police, fire
     and rescue  services are being  provided to each of the  Resorts.  Borrower
     shall have furnished Lender with satisfactory evidence that it has obtained
     all  applicable  governmental  and utility  permits,  approvals,  consents,
     licenses and certificates for the use and occupancy of each of the Resorts.
     The  foregoing  shall  include,  but not be  limited  to any  environmental
     approvals of the Mexican federal,  state or local government authorities of
     Mexico,  all  approvals  for  water,  sewer  and other  utilities;  and all
     approvals required for compliance with local laws and regulations. All such
     approvals shall continue to be legally valid and shall remain in full force
     and effect for so long as the Loan is outstanding.

          (u) Lien  Waivers.  A  certificate  or  affidavit  of Borrower (or the
     Mexican  equivalent)  certifying  that within the past ninety (90) days, no
     work has been  performed  on any of the Resorts  for which  payment has not
     been  made in full  and for  which a lien  could be  filed  (to the  extent
     possible  under Mexican  law),  together with waivers of lien from each and
     every contractor,  subcontractor,  laborer or material supplier  performing
     services or supplying material to any of the Resorts within the past ninety
     (90) days and an affidavit listing all of said entities and certifying that
     no work has been performed and no material have been supplied for which the
     costs remain unpaid prior to closing; provided,  however, that no such lien
     waiver need be delivered by any subcontractor, laborer or material supplier
     performing  services or supplying  material  with a value of less than Five
     Thousand  Dollars  (US$5,000.00)  until such time as the aggregate value of
     labor or materials supplied or services  performed by such  subcontractors,
     laborers or suppliers exceeds Fifty Thousand Dollars (US$50,000.00).

          (v) Timeshare  Documents.  Borrower shall have prepared and filed such
     documents as are  necessary or  appropriate  to receive the approval of the
     Mexican Federal Consumer  Protection  Agency and any and all other federal,
     state  or local  Mexican  authorities  in  connection  with  the  creation,
     marketing  and sale of  Intervals  in each of the  Resorts  to the  general
     public. Upon the approval of Borrower's registration application,  Borrower
     shall  promptly  provide  Lender with  written  evidence of such  approval,

                                       26
<PAGE>

     together with a written opinion of counsel  acceptable to Lender confirming
     Borrower's  compliance with all applicable statues,  ordinances,  rules and
     regulations  in  connection  with  the  creation,  marketing  and  sale  of
     Intervals.  No sale or pre-sale of Intervals may occur until final approval
     of the registration by the Mexican Federal Consumer  Protection Agency. Any
     and all  documentation  establishing each of the Resorts and the Units as a
     timeshare project of public record shall be in form and content  reasonably
     satisfactory to Lender.

          (w) Management and Property Contract. Borrower shall deliver to Lender
     a copy of the  management  contract for each of the Resorts  (collectively,
     the  "Management  Contract"),  and  Lender  shall  have  determined  to its
     reasonable  satisfaction  that the Resorts  are  managed by a  professional
     management company reasonably acceptable to Lender.  Borrower shall deliver
     to Lender copies of all Property  Contracts,  and Lender reserves the right
     to review and approve any  Property  Contracts  which affect in any way the
     Trust Agreements.

          (x) Lien Documents. Copies of all existing lien and mortgage documents
     for the Permitted Liens and  Encumbrances in form and content  satisfactory
     to Lender  and  copies  of the  existing  liens  registered  at the  Public
     Registry of Property and Commerce.  The Trust  Agreements  establishing the
     Resorts  must be  acceptable  to  Lender in its sole  discretion,  and must
     include  appropriate  non-disturbance  terms  with  respect  to the use and
     enjoyment  of  the  Resorts  and  Facilities  by  Interval   Purchasers  in
     accordance with the Declaration and the Timeshare Documents.

          (y) Note Receivable Documents. The form of Interval Lease Contract and
     all purchase  documents used in connection with the Notes  Receivable shall
     be satisfactory to Lender and to the Mexican  Consumer  Protection  Agency.
     The form of Interval Lease Contract and Note Receivable shall be translated
     to English at Borrower's  expense and be reasonably  acceptable to Lender's
     Mexican counsel.

          (z) Tenant Estoppel. If requested by Lender, Borrower shall deliver to
     Lender  estoppel  certificates  from any commercial  tenants in each of the
     Resorts,  dated no earlier than thirty (30) days prior to the Closing Date,
     in a form reasonably  acceptable to Lender. Each estoppel certificate shall
     make certain  certifications  to Lender  including,  but not limited to the
     following:  (i) that the lease or  contract is in full force and effect and
     is  unmodified  or, if modified,  a  certification  as to the  modification
     thereto;  (ii) that Borrower has performed its obligations  under the lease
     or contract  and there  exists no right of setoff or  counterclaim  against
     Borrower;  (iii)  that there has been no  prepayment  of any rents or other
     sums not yet due under the lease or contract in excess of the amount of one
     (1) month's rental; (iv) confirmation of the amounts paid as of November 1,
     1999, for expense reimbursement;  and (v) any other certification as Lender
     shall reasonably request.  In addition,  each commercial tenant shall agree
     with Lender in  writing:  (i) as to the  assignment  or pledge to Lender of
     Borrower's  rights under the  applicable  contract or lease;  (ii) that the
     contract or lease may not be modified or terminated  during the Term of the
     Loan without the prior written  consent of Lender;  (iii) that the contract
     or lease is subordinate to the Loan Documents; (iv) that should an Event of
     Default occur under any of the Loan Documents,  all amounts due and payable
     shall be  subordinate  to amounts due and payable to Lender  under the Loan
     Documents;  (v) that upon the occurrence of an event of default by Borrower
     under a contract or lease,  Lender shall receive notice of such default and
     a reasonable opportunity to cure; (vi) that in the event Lender succeeds to
     all or part of Borrower's interest in the Resorts, tenants should fully and
     completely  attorn to Lender  or  Lender's  nominee  and each  party  shall
     execute such  instrument  with  certification  of such attornment as Lender
     shall  reasonably  request;  (vii) such  party  shall not assert any offset
     rights of liability  with  Borrower  against  Lender;  and (viii) any other
     agreements as Lender shall reasonably request.

          (aa) Estoppel From Existing  Lender.  Borrower shall have delivered to
     Lender an estoppel certificate(s) from FINOVA in conformance with the terms
     of the  Intercreditor  Agreement.  Borrower  shall  deliver  to  Lender  an
     estoppel certificate from any other lenders of Borrower confirming the good
     standing and current dollars outstanding, if any, to such lender.

          (bb) Certification by Borrower and Guarantor. On or before the Closing
     Date, Borrower shall provide Lender with a written  certification as to all
     material  facts  pertinent to the Loan and pertinent to the legal  opinions
     described above in Section 4.1(c) of this  Agreement,  executed by Borrower
     and Guarantor.

                                       27
<PAGE>

          (cc) Facilities Access.  Evidence  satisfactory to Lender, in its sole
     and absolute  discretion,  ensuring that all Interval Purchasers shall have
     perpetual,   unlimited  and  undisturbed  recorded  access  rights  to  all
     Facilities of the Resorts,  whether such  Facilities are owned by Borrower,
     Guarantor or other related party.

          (dd) Power of Attorney. The Lender shall have received (i) a copy of a
     notarized power of attorney from the Borrower and Guarantor in favor of the
     Service of Process  Agent  referred  to in Section  12.23  hereof,  in form
     satisfactory to special Mexican counsel to the Lender, (ii) evidence of the
     Process  Agent's  acceptance  of its  appointment,  and  (iii)  a copy of a
     notarized  power of attorney from the Borrower in favor of Lender  referred
     to in Section 10.12 hereof, in form satisfactory to special Mexican counsel
     to the Lender, empowering the Lender to act as Borrower's  attorney-in-fact
     to take any and all actions in Borrower's name and/or on Borrower's  behalf
     as Lender may deem necessary or appropriate, in its sole discretion, in the
     manner  contemplated  in said Section  10.12 and Sections  10.11 and 9.1(e)
     hereof.  The powers and agency  granted by  Borrower  are  coupled  with an
     interest and are irrevocable  until the Obligations  have been paid in full
     and are granted as cumulative to Lender's other remedies for collection and
     enforcement of the Obligations.

          (ee) Tax  Consequences.  Lender is satisfied,  in its sole discretion,
     that Lender will incur no adverse  foreign tax  consequences as a result of
     the making of Advances and the  performance of its  obligations  under this
     Agreement  and the  remaining  Loan  Documents.  Lender  shall  be  further
     satisfied, in its sole discretion, that the principal and interest payments
     being made to Lender with respect to the Loan, and any other monies payable
     to Lender under this  Agreement or the remaining Loan Documents will not be
     subject to withholding or subject Lender to a withholding requirement, with
     the exception of Mexican Income Tax Withholdings  made by Borrower pursuant
     to Mexican  Income Tax laws and  International  Treaties  executed  between
     Mexico and the United States, as provided under Section 10.17 herein.

          (ff)  Miscellaneous.  Such other  matters,  insurance  or documents as
     Lender shall require.

     4.2 Funding  Procedure.  The obligation of Lender to make any Advance shall
be subject to the satisfaction of all of the following conditions precedent:

          (a) Requests for Advances.  Each request for an Advance under the Loan
     shall be completed on the  appropriate  form attached  hereto as Exhibit F,
     attached hereto and incorporated herein by this reference, and shall:

               (i)  be  in  writing   and  shall   certify  the  amount  of  the
          then-current  Borrowing  Base,  specify  the  principal  amount of the
          Advance  requested  and designate the account to which the proceeds of
          such Advance are to be transferred;

               (ii) state that the  representations  and  warranties of Borrower
          contained in this  Agreement,  as amended  from time to time,  and any
          closing or funding related  certifications  are true and correct as of
          the date of the request and, after giving effect to the making of such
          requested  Advance,  will be true and  correct as of the date on which
          the requested Advance is to be made;

               (iii) state that no Default or Event of Default  exists as of the
          date of the request  and,  after  giving  effect to the making of such
          requested  Advance,  no Default or Event of Default  would exist as of
          the date on which the requested Advance is to be made;

               (iv) be  delivered  to the  office  of  Lender  in East  Hartford
          Connecticut  (or elsewhere upon written notice) within the Term of the
          Loan and at  least  ten (10)  Business  Days  prior to the date of the
          requested Advance;

               (v) be signed by a principal financial officer of Borrower;

               (vi)  certify  that  Borrower has no knowledge of any asserted or
          threatened defense, offset,  counterclaim,  discount or allowance with
          respect to each Note  Receivable to be pledged in connection with such
          requested  Advance,  or  with  respect  to any of  the  Pledged  Notes
          Receivable;

               (vii)  contain an aging report on the Pledged  Notes  Receivable;
          identifying,  among other things,  which among them are Eligible Notes
          Receivable for the subject Advance; and

                                       28
<PAGE>

               (viii)  contain a  delinquency  report which shall be in form and
          substance  satisfactory  to the  Lender  and shall  show which of such
          Notes  Receivable  for the  subject  Advance  are  delinquent  and the
          duration of each such  delinquency,  and which of such  Pledged  Notes
          Receivable is not an Eligible Note Receivable, respectively.

          (b) Loan  Documents/Collateral.  Not less than ten (10)  Business Days
     prior to the date of any Advance under the Loan, the Borrower shall have:

               (i) delivered to Lender a list of all Eligible  Notes  Receivable
          which are to be the subject of such requested Advance,  indicating the
          unpaid principal balance owing on each of the Pledged Notes Receivable
          deemed  to  be  an  Eligible  Note  Receivable,   together  with  such
          additional information as Lender may reasonably request;

               (ii)  delivered  to Lender (or, if Lender  shall so  instruct,  a
          designee  appointed  by Lender in  writing)  (i) the  original of each
          Pledged  Note  Receivable  (duly  endorsed by Borrower  with the words
          "Douglas  Y. Bech,  en mi  caracter  de  apoderado  de la  sociedad CR
          Resorts  Puerto  Vallarta,  S. de R.L.  de C.V.,  endoso en prenda con
          recurso este pagare suscrito por el Sr. ______________,  a favor de la
          sociedad  Textron   Financial   Corporation,   cuyo  domicilio  es  40
          Westminster Street, Providence,  Rhode Island 02940, Estados Unidos de
          America");  (ii) the original or, if not yet received,  a true copy of
          each purchase  contract  (including  addenda)  relating to the Pledged
          Notes Receivable and the Interval Lease Contracts;  (iii) originals or
          true  copies  of the  related  truth-in-lending  disclosures  or other
          applicable  disclosure,  if any,  and,  if  required  by Lender,  loan
          applications,    Payment   Authorization   Agreements,   the   related
          Purchaser's  acknowledgments,   receipts,  consents  to  closing,  and
          Exchange  Company  applications,  disclosures  and  materials and (iv)
          evidence  that proper notice of  Borrower's  pledge and  assignment to
          Lender of the Pledged  Notes  Receivable  and related  Interval  Lease
          Contracts  has been  delivered to and  acknowledged  by each  consumer
          obligor  (Borrower  shall use its best efforts to obtain  within sixty
          (60)  days  from the date of the  Initial  Advance  evidence  that the
          consumer  obligor(s)  of each Note  Receivable  pledged to Lender with
          respect  to  the  Initial  Advance  has   acknowledged   and  accepted
          Borrower's  pledge and  assignment of such Note  Receivable to Lender;
          thereafter,  Borrower  shall  provide  Lender  with such  evidence  of
          acknowledgement with each request for Advance under the Loan);

               (iii)  delivered  to Lender (or if Lender  shall so  instruct,  a
          designee  appointed  by Lender in  writing) an  Assignment  of Pledged
          Notes  Receivable and Interval Lease  Contracts,  duly executed and in
          proper  form for  recording,  assigning  to Lender  all of  Borrower's
          right,  title and interest in and to each such Pledged Note Receivable
          and the related Interval Lease Contract;

               (iv)  delivered  to  Lender,  with  respect  to  each  Encumbered
          Interval,  a  notary's  opinion  confirming  that the  Interval  Lease
          Contract with respect to such Interval has been assigned to Lender and
          insuring in favor of Lender a valid and first  priority  assignment of
          and security interest in such Interval Lease Contract;

               (v) for the  Initial  Advance  only,  delivered  to  Lender,  the
          original UCC financing  statements or Mexican equivalent  covering the
          Collateral, recorded, to the extent permitted under applicable Mexican
          laws, in the Public  Registry of Properties in the location of each of
          the Resorts.  The assignments of the Interval  Purchase  Contracts and
          the UCC financing statements or Mexican equivalent, if required, shall
          each have been duly recorded, to the extent permitted under applicable
          Mexican laws, in the Public  Registry of Properties of in the location
          of each of the Resorts.

          All Pledged  Notes  Receivable  assigned to Lender must have  evidence
     thereon of payment of all required documentary stamps and intangible taxes,
     if any are required. The funding of the requested Advance,  delivery of the
     Collateral and recording of the assignments or pledges, or any releases and
     the UCC  financing  statements,  if any,  may, in Lender's  discretion,  be
     effected by way of an escrow arrangement with the Mexican notary who issues
     the title  report or  certificate  required  under  Section  4.1(b) of this
     Agreement or other fiduciary  selected by Lender, the form and substance of
     which shall be satisfactory to Lender.

                                       29
<PAGE>

          (c) Other Conditions. In addition to the other conditions set forth in
     this  Agreement,  the making of the initial or any requested  Advance under
     the Loan shall be subject to the satisfaction of the following conditions:

               (i) there  shall not have  occurred  and remain  uncured,  at any
          time,  an Event of Default  hereunder,  no Default or Event of Default
          shall exist  immediately prior to the making of such requested Advance
          or, after giving effect thereto,  immediately after the making of such
          requested Advance;

               (ii) each agreement  required to have been executed and delivered
          by Borrower in  connection  with any prior Advance shall be consistent
          with the  terms of this  Agreement  and  shall  be in full  force  and
          effect;

               (iii)  the date on which  such  requested  Advance  is to be made
          shall be a Business Day;

               (iv)  Borrower  shall have  delivered  to Lender a  certification
          showing  the  dollar  amount  of the  requested  Advance  based on the
          Eligible Notes Receivable  pledged to Lender, and the Notes Receivable
          being pledged  contemporaneously  with each  requested  Advance in the
          form of Exhibit F,  attached  hereto and  incorporated  herein by this
          reference;

               (v) not more  than two (2)  Advances  under the Loan  shall  have
          previously  been  made  in the  same  calendar  month  in  which  such
          requested   Advance  is  to  be  made,  unless  Lender,  in  its  sole
          discretion,  agrees to make an  additional  such  Advance  during such
          calendar month;

               (vi) such requested Advance shall be in a principal amount of not
          less than US$50,000, unless Lender, in its sole discretion,  agrees to
          make an Advance in an amount less than US$50,000;

               (vii) Lender shall have  determined  that the requested  Advance,
          when  added  to the  aggregate  outstanding  principal  amount  of all
          previous  Advances,  if any,  does not exceed the total  amount of the
          Borrowing Base,  based on the Eligible Notes Receivable that have been
          or will be duly pledged in favor of Lender;

               (viii) Lender shall have  received  evidence  satisfactory  to it
          that:

                    (a)  Borrower  has  obtained  any  applicable  approvals  or
               permits  from the  appropriate  federal,  state or local  Mexican
               governmental  authorities  necessary  to create the  Intervals in
               compliance  with Mexican law and offer the  Intervals for sale to
               the general public;

                    (b) Borrower has  completed  all  contemplated  upgrades and
               refurbishments  to the  Units  which  correspond  to the  subject
               Interval sales;

                    (c) the applicable Units and Intervals have been accepted by
               the Exchange Company into its reciprocal exchange program;

                    (d) with  respect  to the  applicable  Units and  Intervals,
               Borrower has obtained all required approvals,  consents, permits,
               licenses  and  certificates  necessary  to create and occupy such
               Units and  Intervals  for their  intended  use,  to  operate  the
               Resorts and to market and sell the Intervals;

                    (e) all  documents  establishing  the  Units  as part of the
               Resorts must be completed in form and in content  satisfactory to
               Lender, and the form of consumer  promissory note, Interval Lease
               Contract,  and all remaining purchase  documentation  utilized by
               Borrower in connection with the Eligible Notes  Receivable  shall
               be satisfactory to Lender;

                    (f)  Borrower  has  delivered  to Lender or  established  an
               escrow  arrangement  satisfactory  to Lender for  delivery of the
               documents   required  pursuant  to  Section  4.2(b)(ii)  of  this
               Agreement; and

                                       30
<PAGE>

                    (g) within ten (10) days  following the end of each calendar
               month,  Borrower  shall  provide  Lender with a monthly sales and
               cancellations report on all Notes Receivable.

               (ix) During the term of each  Pledged Note  Receivable,  title to
          the respective  Interval  shall be held by Lender,  if it so elects in
          its sole and absolute discretion.

               (x)  Prior  to  making  the   Initial   Advance,   a  release  or
          nondisturbance procedure shall be established pursuant to the terms of
          the Intercreditor Agreement which is satisfactory to Lender.

          (d) Expenses.  Borrower shall have paid all fees and expenses required
     to be paid  pursuant to this  Agreement in connection  with such  requested
     Advance or any conditions related thereto.

          (e)  Proceedings  Satisfactory.  All actions taken in connection  with
     such requested  Advance and all documents and papers relating thereto shall
     be  satisfactory  to Lender and its counsel.  Lender and its counsel  shall
     have received copies of such documents and papers as Lender or such counsel
     may reasonably  request in connection with such requested  Advance,  all in
     form and substance reasonably satisfactory to Lender and its counsel.

Section 5. INTENTIONALLY OMITTED.

Section 6. GENERAL REPRESENTATIONS AND WARRANTIES.

     Borrower and the  Guarantor,  jointly and severally,  hereby  represent and
warrant to Lender as follows:

     6.1 Organization,  Standing, Qualification. Each of the respective Borrower
entities (a) are Mexican variable capital stock limited liability companies duly
organized, validly existing and in good standing under the laws of Mexico and as
foreign  corporations under the laws of each jurisdiction in which the character
or  location  of the  properties  owned  or  the  business  transacted  requires
licensing and qualifications; and (b) have all requisite power, to conduct their
business and to execute and deliver, and to perform their obligations under, the
Loan Documents to which each is a party; (c) the individuals executing this Loan
Agreement and the remaining Loan  Documents have the proper  authority to do so,
pursuant to an appropriate power of attorney;  and (d) have a financial interest
in one or more of the  Resorts  and  will  derive  financial  benefit  from  its
execution  of this  Agreement  and the  remaining  Loan  Documents.  Each of the
entities  comprising  Borrower  acknowledges that Lender would not make the Loan
contemplated  by this  Agreement  unless  each of the  entities  comprising  the
Borrower (i) became a party to this Agreement and the remaining Loan  Documents,
(ii) became jointly and severally  liable for the payment and performance of all
of the Obligations,  and (iii) granted to Lender a security interest, subject to
the Permitted Liens and Encumbrances (and  specifically  including the Permitted
FINOVA Liens), in all items of Collateral owned by each Borrower.  Although each
of the entities  comprising  Borrower maintains its separate legal existence and
operates as a distinct and separate  entity,  such  entities  have  historically
engaged in substantial business with each other and have operated, and intend to
continue  operating,  as a joint and consolidated  entity for financial planning
and cash  management  purposes and for purposes of  achieving  certain  business
operation efficiencies.  Each of the entities comprising Borrower will therefore
benefit from the financing  arrangement and  accommodations by Lender under this
Agreement and the remaining Loan Documents.

     Guarantor is  permitted  by its bylaws to execute,  deliver and perform its
obligations  under each of the Loan Documents to which it is a party;  Guarantor
has a financial  interest in Borrower and will derive financial benefit from its
execution of the Guaranty.

     6.2 Authorization, Enforceability, Etc.

          (a) The  execution,  delivery and  performance by Borrower of the Loan
     Documents has been duly  authorized by all necessary  corporate  actions by
     Borrower and does not and will not (i) violate any  provision of Borrower's
     articles  of  organization  ("estatutos"),   operating  agreements  or  any
     agreement,  law,  rule,  regulation,  order,  writ,  judgment,  injunction,
     decree,  determination  or award presently in effect to which Borrower is a
     party or is subject;  (ii) result in, or require the creation or imposition
     of, any Lien upon or with  respect to any asset of  Borrower  or  Guarantor
     other  than Liens in favor of  Lender;  or (iii)  result in a breach of, or

                                       31
<PAGE>

     constitute a default by Borrower or Guarantor under, any indenture, loan or
     credit   agreement  or  any  other  agreement,   document,   instrument  or
     certificate  to which  Borrower or Guarantor is a party or by which they or
     it or any of their or its assets are bound or affected.

          (b) No approval,  authorization,  order, license, permit, franchise or
     consent of, or registration  (with the exception of the registration of the
     Textron  Mortgages),   declaration,   qualification  or  filing  with,  any
     governmental authority or other Person,  including without limitation,  any
     applicable  regulatory  authorities  is  required  in  connection  with the
     execution,  delivery and performance by Borrower or Guarantor of any of the
     Loan Documents.

          (c) The Loan Documents constitute legal, valid and binding obligations
     of Borrower and Guarantor,  enforceable  against  Borrower and Guarantor in
     accordance with their respective terms.

          (d) Borrower has good and marketable  title to all of the  Collateral,
     free and clear of any Lien, security interest, charge or encumbrance except
     for the Liens or security  interests  created by this Agreement or any Loan
     Document or otherwise  created in favor of Lender or those  Permitted Liens
     and Encumbrances as set forth on Exhibit B. No financing statement or other
     instrument  similar in effect covering all or any part of the Collateral is
     on file in any  recording  office,  except  such as may have been  filed in
     favor of Lender or in favor of FINOVA with respect to the Permitted  FINOVA
     Liens.

          (e) The execution and delivery of the Loan Documents, the delivery and
     endorsement  to Lender of the Pledged Notes  Receivable,  the filing of the
     UCC-1  financing  statements,  or  Mexican  equivalent,   with  the  Public
     Registries of Property in the location of each of the Resorts,  recordation
     of the Assignment of Pledged Notes Receivable and Interval Lease Contracts,
     the Assignment of Interest in Contracts,  Permits,  Licenses and Approvals,
     and the  Textron  Mortgages  in the Public  Registries  of  Property in the
     location  of each of the  Resorts,  create  in favor of  Lender a valid and
     perfected  continuing first priority liens and security interests in and to
     all  of  the  Collateral,  subject  to  the  Permitted  FINOVA  Liens.  The
     Collateral   shall  secure  the  full  payment  and   performance   of  the
     Obligations.

          (f) To the best of the Borrower's knowledge, none of the Pledged Notes
     Receivable is forged or has affixed thereto any unauthorized  signatures or
     has been entered into by any Person  without the required  legal  capacity;
     and during  the term of the  Agreement,  none will be forged,  or will have
     affixed thereto, any unauthorized signatures.

          (g) There have been no modifications  or amendments  whatsoever to the
     Pledged Notes  Receivable or the related  Interval  Lease  Contracts  which
     modifications or amendments are not evidenced by appropriate documentation,
     duly executed, forming a part thereof.

          (h) To the best of  Borrower's  knowledge,  the makers of the Eligible
     Notes  Receivable  have  no  defenses,  offsets,  counterclaims  or  claims
     relating to the Eligible Notes Receivable or the Interval Lease Contracts.

          (i) The  Pledged  Notes  Receivable  and the  related  Interval  Lease
     Contracts were executed and delivered by Purchasers in favor of Borrower in
     connection with the purchase of the related Encumbered Intervals.

          (j) The  Pledged  Notes  Receivable  and the  related  Interval  Lease
     Contracts are and shall remain in full force and effect, and, once endorsed
     in favor of Lender, will be valid and binding obligations of the respective
     makers in favor of Lender,  as holder;  and Borrower  further  warrants and
     guarantees the value, quantity,  sound condition,  grade and quality of the
     Encumbered  Intervals and all rights,  properties,  easements and interests
     appurtenant or related thereto.

          (k) The  grant of the  security  interests  described  herein  has not
     affected  and  will  not  affect  the  validity  or  enforceability  of the
     obligations of the respective  makers of the Pledged Notes Receivable under
     such Notes Receivable or the related Interval Lease Contracts.

                                       32
<PAGE>

          (l) Lender is not and shall not be  required  to take any  steps,  and
     Borrower has taken any and all required steps, to protect Lender's security
     interests  in the  Collateral  (other than  maintaining  possession  of the
     portion  of the  Collateral  constituting  instruments  and  timely  filing
     continuation  statements for the Financing  Statements);  and Lender is not
     and shall not be required to collect or realize upon the  Collateral or any
     distribution of interest or principal, nor shall loss of, or damage to, the
     Collateral release Borrower (or the Guarantor) from any of the Obligations.

     6.3 Financial  Statements and Business Condition.  The Financial Statements
submitted  by Borrower  and  Guarantor  pursuant to the  requirements  set forth
herein,  fairly  present  the  respective  financial  conditions  and results of
operations of Borrower and the Guarantor as of the date or dates thereof and for
the  periods  covered  thereby.  There are no  material  liabilities,  direct or
indirect,  fixed or contingent,  of Borrower or the Guarantor as of the dates of
such  Financial  Statements  which  are not  reflected  therein  or in the notes
thereto,  which have not otherwise been  disclosed to Lender in writing.  Except
for any such changes heretofore  expressly disclosed in writing to Lender, there
has been no material  adverse change in the respective  financial  conditions of
Borrower or the Guarantor  from the financial  conditions  shown in its or their
respective Financial Statements, nor have Borrower or the Guarantor incurred any
material  liabilities,  direct or indirect,  fixed or contingent,  which are not
shown in their  respective  Financial  Statements.  Borrower and the  Guarantor,
respectively,  are able to pay all of their respective debts as they become due,
and Borrower and the Guarantor,  as the case may be, shall maintain such solvent
financial  condition,  giving effect to the Obligations,  as long as Borrower or
the Guarantor are  obligated to Lender under the  Agreement,  or with respect to
the Guarantor,  the Guaranty,  or in any other manner whatsoever.  Borrower's or
the  Guarantor's  Obligations  under this Agreement and under the Loan Documents
will not render  Borrower or the  Guarantor  unable to pay its or their debts as
they become due. The present fair market value of Borrower's or the  Guarantor's
assets are greater than the amount required to pay its or their respective total
liabilities.

     6.4 Taxes.  Borrower represents and warrants that Borrower has paid in full
all ad valorem  taxes,  if any,  and other  taxes and  assessments  to be levied
against the  Collateral  owned by it and due and payable as of the date  hereof,
and Borrower knows of no basis for any additional  taxes or assessments  against
any of the Resorts or the  Collateral  owned by it,  other than  periodic  taxes
currently  paid by Borrower or  Guarantor  from time to time with respect to the
Collateral. Borrower has filed all tax returns required to have been filed by it
and has paid or will pay,  prior to  delinquency,  all taxes shown to be due and
payable on such returns,  including interest and penalties,  and all other taxes
which are  payable by it or them,  to the  extent  the same have  become due and
payable.  Borrower shall pay all applicable sales,  rental,  occupancy and other
taxes  with  regard  to the  sale or  rental  of any  Intervals  related  to the
Collateral owned by it hereunder.  To the best of Borrower's  knowledge,  no tax
audit is pending or is threatened with respect to Borrower or the Guarantor.

     6.5 Title to  Properties:  Prior Liens.  Borrower  has good and  marketable
title  (or  holds a first  beneficial  interest  in trust  use  rights as to all
Collateral pursuant to the Trust Agreements) to all of the Collateral and to all
Unsold Intervals,  Encumbered Intervals and all rights,  properties and benefits
appurtenant or related thereto.  Borrower's sole business involves the operation
of the  Resorts  and the  marketing,  sale and  financing  of  Intervals  at the
Resorts, and the Resorts are the sole real estate asset of Borrower. Borrower is
not  in  default  under  any  of  the  documents   evidencing  or  securing  any
indebtedness  which is secured,  wholly or in part, by all or any portion of the
Collateral,  and no event has  occurred  which with the  giving of  notice,  the
passage of time or both,  would  constitute a default under any of the documents
evidencing  or securing any such  indebtedness.  Other than the Liens granted in
favor  of  Lender  and  the  Permitted  FINOVA  Liens,  there  are no  Liens  or
encumbrances  against  all or any  portion  of the  Collateral,  except  for the
Permitted Liens and Encumbrances.

     6.6  Subsidiaries,  Affiliates  and  Capital  Structure.  Borrower  has  no
subsidiaries or Affiliates which have any involvement or interest in the Resorts
in any way,  with the sole  exceptions of (a) Club Regina,  S.A. de C.V.,  which
collects  memberships  fees and makes  payment  of  maintenance  fees  under the
Operating Agreements,  and (b) Servicios Turisticos Integrales Cobamex, S. de R.
L. de C.V.,  which provides  administrative  services to certain of the Borrower
entities.  The Guarantor is involved,  directly or through its subsidiaries,  in
the business  operations of and derives financial benefit from Borrower.  Except
as set forth in Section  7.1(c),  for so long as Borrower is obligated to Lender

                                       33
<PAGE>

under any of the Loan  Documents,  there shall be no change of  ownership of the
shares of stock in Borrower without the prior written consent of Lender. None of
the  Affiliates  of Borrower nor  Guarantor  is a party to any  proxies,  voting
trusts, shareholders agreements or similar arrangements pursuant to which voting
authority,  rights or discretion with respect to Borrower or Guarantor is vested
in any other Person.

     6.7 Litigation,  Proceedings,  Etc. Except as set forth in Exhibit E, there
are no actions, suits, proceedings,  orders or injunctions pending or threatened
against or affecting Borrower,  any Affiliate of Borrower,  the Guarantor or any
of the Resorts, at law or in equity, or before or by any governmental  authority
or other tribunal,  which (a) could have a material  adverse effect on Borrower,
any Affiliate of Borrower or the  Guarantor;  or (b) relate to the Loan or which
could have a material  adverse effect on the Collateral or the Resorts.  Exhibit
E, attached  hereto and  incorporated  herein by this  reference,  describes all
currently pending  litigation  against Borrower and the Guarantor.  Borrower has
received  no notice from any court,  governmental  authority  or other  tribunal
alleging that  Borrower or any of the Resorts have  violated the Timeshare  Act,
any other  applicable  statute,  ordinance,  rule or  regulation  governing  the
marketing and sale of Intervals, the Declaration,  the other Timeshare Documents
or any other  applicable  laws,  agreements or arrangements  that could have any
material  adverse effect on the Loan,  the  Collateral or the Resorts.  Borrower
shall provide to Lender prompt  written notice of any action  commenced  against
any of the foregoing Persons.

     6.8 Licenses,  Permits,  Etc.  Borrower,  each of the Resorts and all other
Persons  involved in the  management or  operations of the Resorts,  possess and
will at all times continue to possess all requisite franchises,  certificates of
convenience  and necessity,  operating  rights,  approvals,  licenses,  permits,
consents, authorizations, exemptions and orders as are necessary to carry on its
or their  business as now being  conducted,  without any known conflict with the
rights of others and,  with respect to Borrower and the  Collateral in each case
subject to no mortgage,  pledge,  Lien,  lease,  encumbrance,  charge,  security
interest,  title retention  agreement or option other than the Permitted  FINOVA
Liens and other than as provided for by this  Agreement.  All such  licenses and
permits are presently in full force and effect, and there is no action currently
pending or threatened to revoke or modify any such license or permit.

     6.9 Environmental  Matters. The Resorts do not contain and will not contain
any  Hazardous  Materials  in  violation  of  applicable  law,  and no Hazardous
Materials,  other  than  such  items,  by  way  of  example  and  not  by way of
limitation,  as cleaning  supplies,  are used or stored at or  transported to or
from the Resorts.  Neither Borrower,  the Resorts,  nor any manager thereof have
received notice from any governmental agency, entity or other Person with regard
to  Hazardous  Materials  on,  under or affecting  the  Collateral,  and neither
Borrower  nor  the  Collateral,  nor  any  portion  thereof,  nor to  Borrower's
knowledge  after  diligent  inquiry,  the Resorts or any manager  thereof are in
violation of any Environmental  Laws.  Borrower hereby represents to Lender that
the Resorts are located on or near a Mexican  Federal  Maritime and  Terrestrial
Zone such that Borrower is or has in the past,  been required to secure from the
Mexican Federal Government (a) an Environmental  Construction  License or impact
analysis,  or (b) to the extent  required under local or Federal  Mexican law, a
concession  granted  by the  Mexican  Federal  Government  with  respect  to the
occupancy of a Federal Maritime and Terrestrial Zone.

     6.10 Full  Disclosure.  No  information,  exhibit or written  report or the
content  of any  schedule  furnished  by  Borrower  or  Guarantor  to  Lender in
connection with the Loan, the Resorts or the Collateral,  and no  representation
or statement  made by Borrower or Guarantor in any Loan  Document,  contains any
material  misstatement  of  fact or  omits  the  statement  of a  material  fact
necessary  to make the  statement  contained  herein or therein not  misleading.
Borrower and the Guarantor  know of no fact or condition  which could prevent or
delay the sale of Intervals to  Purchasers or prevent or impede the operation of
the  Resorts  in  accordance  with  the  Declaration,  the  remaining  Timeshare
Documents and related public offering  statement or other disclosure  documents,
and in accordance  with  applicable  law, or prevent  Borrower's or  Guarantor's
performance of its Obligations pursuant to the Loan Documents.

     6.11  Use of  Proceeds/Margin  Stock.  The  proceeds  of the  Loan  will be
disbursed only for the following purposes:

          (a) Payment of the Loan Costs (as defined in the Commitment) and those
     amounts set forth in Section 7.1(v) hereof;

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<PAGE>

          (b) Payment of all  indebtedness  secured by any prior and subordinate
     liens and  mortgages  encumbering  all or any  portion  of the  Collateral,
     except the Declaration,  the remaining Timeshare Documents and the Security
     Documents (as defined in the Commitment); and

          (c) To Borrower:

               (i)  To   pay   marketing,   project   development,   sales   and
          administrative  expenses incurred in connection with the marketing and
          sale of Encumbered Intervals and in connection with the operations for
          the Resort,  for working  capital,  for future  expansion of timeshare
          development  in accordance  with plans and  projections  acceptable to
          Lender  (provided,  however,  that the use of the proceeds of the Loan
          for such expansion shall not adversely affect the operations of any of
          the Resorts), and as provided for under Section 2.1 of this Agreement.

          If the  proceeds of any  Advance and other  monies paid by Borrower to
     Lender  are  insufficient  to satisfy  the costs and liens with  respect to
     Collateral  against  which an Advance is to be made, or the use of proceeds
     of the Loan or any Advance  varies  materially,  as determined by Lender in
     its sole discretion,  from the uses described  above,  Lender shall have no
     obligation to fund the remainder of the Loan or any further Advances.

     6.12 No Defaults.  No Default or Event of Default  exists,  and there is no
violation  in any  material  respect  of any  term  of  any  agreement,  charter
instrument,  bylaw  or other  instrument  to which  Borrower,  Guarantor  or any
Affiliate thereof is a party or by which it may be bound, specifically including
the FINOVA Loan, the Indenture and the Mirror Notes.

     6.13 Compliance with Law. Borrower:

          (a) is not in  violation,  nor are any of the Resorts or the  business
     operations  with respect to the Resorts in violation of the Timeshare  Act,
     the Mexican Federal Law of Consumer Protection,  all Federal and local laws
     applicable  in Mexico and the States of Baja  California  Sur,  Jalisco and
     Quintana  Roo,  Mexico,  or  any  other  statues,   ordinances,   rules  or
     regulations of any other  jurisdiction  to which  Borrower,  the Encumbered
     Intervals,  the Unsold Intervals or the business operations  conducted with
     respect to the Resorts are subject; and

          (b) has not failed,  nor have any of the Resorts failed, to obtain any
     consents or joinders, or any approvals,  licenses,  permits,  franchises or
     other  governmental  authorizations,  or to make or  cause  to be made  any
     filings, submissions,  registrations or declarations with any government or
     agency or department thereof, necessary to the establishment,  ownership or
     operation  of the Unsold  Intervals,  the  Encumbered  Intervals  or any of
     Borrower's properties, or to the conduct of Borrower's business, including,
     without  limitation,  the previous offer and sale of Intervals or the sale,
     or offering  for sale,  of Unsold or  Encumbered  Intervals at the Resorts;
     which  violation  or failure  to obtain or  register  materially  adversely
     affects  Borrower,  the Unsold Intervals,  the Encumbered  Intervals or the
     business,   prospects,  profits,  properties  or  condition  (financial  or
     otherwise) of Borrower, the Guarantor or any of the Resorts.  Borrower has,
     to the extent  required by its  activities and  businesses,  fully complied
     with  the  following  laws and  regulations  (i) at such  possible  time as
     Borrower  markets  or sells  Intervals  in any of the  Resorts  within  the
     borders of the United States,  all of the applicable  provisions of (A) the
     Consumer  Credit  Protection  Act; (B) Regulation Z of the Federal  Reserve
     Board;  (C) the Equal  Credit  Opportunity  Act;  (D)  Regulation  B of the
     Federal Reserve Board; (E) the Federal Trade Commission's 3-day cooling-off
     Rule for Door-to-Door  Sales; (F) Section 5 of the Federal Trade Commission
     Act; (G) the Interstate  Land Sales Full  Disclosure Act ("ILSA");  (H) the
     federal postal laws; (I) all applicable state and federal  securities laws;
     (J) all applicable usury laws; (K) all applicable trade practices, home and
     telephone solicitation,  sweepstakes,  anti-lottery and consumer credit and
     protection   laws;  (L)  all  applicable   real  estate  sales   licensing,
     disclosure,  reporting and escrow laws; (M) the Americans With Disabilities
     Act and  related  accessibility  guidelines  ("ADA");  (N) the Real  Estate
     Settlement  Procedures Act  ("RESPA");  (O) all amendments to and rules and
     regulations promulgated under the foregoing acts or laws; and (P) all other
     applicable  federal  statutes  and the  rules and  regulations  promulgated
     thereunder;  and (ii) all of the applicable provisions of the Timeshare Act
     and any other  applicable  Mexican law or the law of any other state having
     jurisdiction  (and  the  rules  and  regulations   promulgated  thereunder)
     relating to timeshare  ownership,  the establishment of any of the Resorts,
     or the sale,  offering  for  sale,  marketing  or  financing  of  Intervals
     therein.

                                       35
<PAGE>

     6.14 Restrictions of Borrower or Guarantor.  Neither  Borrower,  Guarantor,
any of the Resorts,  the Unsold Intervals nor the Encumbered  Intervals is/are a
party to any contract or agreement,  or subject to any Lien, charge or corporate
restriction,  which  materially  and  adversely  affects its or their  business.
Except for the FINOVA Loan Agreement and the documents related thereto,  and the
Indenture, which is indirectly binding on Borrower by reason of its relationship
with Guarantor,  and except as otherwise may be approved by Lender in accordance
herewith,  Borrower  will not be, on or after the Closing  Date,  a party to any
contract or agreement which restricts its right or ability to incur indebtedness
or prohibits  Borrower's  execution  of, or  compliance  with the terms of, this
Agreement or the other Loan  Documents.  Borrower has not agreed or consented to
cause or permit in the future (upon the happening of a contingency or otherwise)
any of the Collateral, whether now owned or hereafter acquired, to be subject to
a Lien  except in favor of Lender as provided  hereunder  and except in favor of
FINOVA with respect to the Permitted FINOVA Liens.

     6.15  Broker's  Fees.  Lender  and  Borrower  represent  to each other that
neither of them has made any  commitment  or taken any action which could result
in a claim for any broker's,  finder's or other similar fees or commissions with
respect to any of the  transactions  contemplated  by this  Agreement.  Borrower
agrees to indemnify  Lender and save and hold Lender  harmless  from and against
any and all claims of any Person for any broker's or finder's  fee,  commission,
taxes or similar compensation or amount arising in connection with the Loan, and
this indemnity shall include reasonable attorneys' fees and legal expenses.

     6.16 Deferred Compensation Plans.  Borrower has no pension,  profit sharing
or other  compensatory or similar plan (herein called a "Plan")  providing for a
program of deferred compensation for any employee or officer, with the exception
of Borrower's  profit sharing plan as is required under Mexican Labor Law (under
which  Borrower is not in default in payment of (i) any wages or salaries to its
employees;  or (ii) any  assessments  payable by  Borrower  under any Federal or
state act). As provided under the comparable  local and Federal Mexican laws, no
fact or situation, including but not limited to, any "Reportable Event," as that
term is defined in Section 4043 of the United States Federal Employee Retirement
Income  Security  Act of 1974  as the  same  may be  amended  from  time to time
("Pension  Reform  Act")  exists or will  exist in  connection  with any Plan of
Borrower  which  might  constitute  grounds for  termination  of any Plan by any
Mexican  equivalent of the Pension  Benefit  Guaranty  Corporation  or cause the
appointment by the appropriate  United States District Court of a Trustee or the
appropriate  Mexican  Court to administer  any such Plan. As provided  under the
comparable  local and Federal Mexican laws, no "Prohibited  Transaction"  within
the meaning of Section  406 of the Pension  Reform Act exists or will exist upon
the execution and delivery of the  Agreement or the  performance  by the parties
hereto of their respective duties and obligations  hereunder.  Borrower will (a)
at all times make prompt payment of  contributions  required to meet the minimum
funding  standards  set forth in the Mexican  equivalent of Sections 302 through
305 of the Pension  Reform Act with respect to each of its Plans;  (b) promptly,
after the  filing  thereof,  furnish  to Lender  copies  of each  annual  report
required to be filed  pursuant to the Mexican  equivalent  of Section 103 of the
Pension  Reform Act in connection  with each Plan for each Plan Year,  including
any certified financial  statements or actuarial statements required pursuant to
the Mexican equivalent of said Section 103; (c) notify Lender immediately of any
fact, including,  but not limited to, any Reportable Event arising in connection
with any Plan which  might  constitute  grounds for  termination  thereof by the
Mexican  equivalent  of the  Pension  Benefit  Guaranty  Corporation  or for the
appointment  by the  appropriate  United States  District  Court of a Trustee or
appropriate  Mexican Court to administer  the Plan; and (d) notify Lender of any
"Prohibited  Transaction," as that term is defined in the Mexican  equivalent of
Section  406 of the  Pension  Reform  Act.  Borrower  will not (a) engage in any
Prohibited  Transaction;  or (b) terminate any such Plan in a manner which could
result in the  imposition  of a Lien on any asset of Borrower  pursuant,  to the
Mexican equivalent of Section 4068 of the Pension Reform Act.

     6.17 Labor  Relations.  The  employees  of Borrower  are not parties to any
collective  bargaining  agreement  with  Borrower and, to the best of Borrower's
knowledge, there are no material grievances,  disputes or controversies with any
union or any other organization of Borrower's employees,  or threats of strikes,
work stoppages or any asserted pending demands for collective  bargaining by any
union or organization of which any employees of Borrower are members.

     6.18 Resorts.

          (a)  Timeshare  Plan.  Each  of the  Resorts  have  been  established,
     dedicated and to Borrower's knowledge, are and will remain, timeshare plans
     and projects in full compliance  with all applicable laws and  regulations,
     including without  limitation,  the Timeshare Act, and the Resort Property,

                                       36
<PAGE>

     all Units, all Improvements thereon, the Facilities, the Common Furnishings
     and all related real and personal  property  have been and will continue to
     be duly submitted to the provisions of the  Declaration.  Borrower will not
     amend the Timeshare Documents,  specifically including the Declaration,  in
     any material respect without the prior written  approval of Lender,  unless
     it is ordered mandatory by the appropriate Mexican governmental authorities
     upon prior written notice to Lender.

          (b) Access.  The Resort Property  (including all Units and Facilities)
     have direct access to publicly dedicated roads, and all roadways located on
     the Resort  Property  are  subject to an access and use  easement  or other
     dedication  or provision  that  benefits  and will  continue to benefit all
     Purchasers.

          (c)  Utilities.   Electric,   gas,   sanitary  and  stormwater  sewer,
     telephone,  water  facilities and other  necessary  utilities are available
     and, to the best of Borrower's  knowledge after diligent inquiry,  there is
     sufficient  capacity  to  service  each  of  the  Resorts  and  all  Units,
     Facilities  and  Common   Furnishings.   Any  easements  necessary  to  the
     furnishing of such utility  services have been obtained,  duly recorded and
     inure to the benefit of the Resort Property.

          (d)  Amenities.  Each  Purchaser  of  an  Interval,  for  so  long  as
     he/she/they  fulfill each and all of the obligations of Purchaser under the
     Note  Receivable,  the  Interval  Lease  Contract  and any  and  all  other
     documents evidencing the purchase of said Purchaser's  Interval,  including
     without  limitation,  the obligation to pay assessments,  has and will have
     access to and the full use and enjoyment of all of the  Facilities,  Common
     Furnishings and public utilities of the Resorts, all in accordance with the
     Declaration and the other Timeshare Documents.

          (e)  Construction.  All costs arising from Borrower's  construction or
     acquisition of any Units and any other improvements and the purchase of any
     furniture, fixtures, equipment, inventory,  furnishings or other personalty
     related  to the  Collateral  hereunder  have been paid or will be paid when
     due.

          (f) Sale of Intervals. The marketing, sale, offering for sale, rental,
     solicitation  of Purchasers  or, if applicable,  lessees,  and financing of
     Intervals by Borrower at the Resorts (i) do not constitute the sale, or the
     offering  of sale,  of  securities  subject  to the  registration  or other
     requirements  of the Securities Act of 1933, as amended,  or any applicable
     United States or Mexican  securities law; (ii) do not violate the Timeshare
     Act or any other  statute,  ordinance,  rule or regulation of Mexico or any
     other state or jurisdiction in which a Purchaser  resides or in which sales
     or  solicitation  activities  occur;  and (iii) do not violate any consumer
     credit or usury statute of Mexico,  the United States or any other state or
     jurisdiction in which a Purchaser resides or in which sales or solicitation
     activities occur. All Interval marketing and sales activities are performed
     by  Borrower  (or by a sales  and  marketing  organization,  acceptable  to
     Lender,  contracted with or employed by Borrower),  who is and shall remain
     properly  licensed in accordance with Mexican and United States law and any
     other  applicable  laws.  Borrower  has  registered  each of the Resorts to
     permit Interval sales pursuant to applicable Mexican registration laws, and
     Borrower has complied  with all laws of these  jurisdictions  governing its
     conduct. Before Borrower markets, offers for sale or sells Intervals in any
     other  jurisdictions,  Borrower  will  promptly  notify  Lender and provide
     Lender with evidence satisfactory to Lender that Borrower has complied with
     all   laws  of  such   jurisdiction   governing   its   proposed   conduct.
     Notwithstanding  anything to the contrary provided in this Section 6.18(f),
     the laws of the United  States  concerning  the sale of Intervals  shall be
     applicable  only at  such  possible  time  as  Borrower  markets  or  sells
     Intervals within the borders of the United States.

          (g) Tangible Property. Except for specific items which may be owned by
     independent  contractors,  the machinery,  equipment,  fixtures,  tools and
     supplies used in connection with the Resorts, including without limitation,
     with respect to the operations and maintenance of the Facilities and Common
     Furnishings,  are owned by the Borrower or by the Land Trustee on behalf of
     Borrower.

                                       37
<PAGE>

          (h) Units at the Resorts.  The Resorts presently includes aggregate of
     four hundred two (402) timeshare Units which are part of the Resorts,  with
     sixty-nine (69) Units located at the Resort in Cancun,  Mexico, two hundred
     three (203) Units located at the Resort in Puerto Vallarta, Mexico, and one
     hundred thirty (130) Units located at the Resort in Los Cabos, Mexico. Each
     Unit is fully furnished and ready for use and occupancy by Purchasers.  All
     Common  Furnishings  (including  appliances) within Units in which Borrower
     has sold  Intervals  have been fully paid for and are free and clear of any
     liens or other  interests  of any third  party  (subject  to the  Permitted
     FINOVA Liens), including any lessor or other lender.

          (i) Assessments.  As the operator of the Resorts,  the Borrower levies
     annual  assessments  to cover the costs of  maintaining  and  operating the
     Resorts.  The currently levied assessments upon Purchasers will be adequate
     to cover the reasonably  foreseeable costs of maintaining and operating the
     Resorts and to establish  and  maintain a  reasonable  reserve for deferred
     maintenance and capital  improvements.  There are no events which currently
     exist or could  reasonably be foreseen by Borrower which could give rise to
     a material  increase in such costs.  Borrower  shall  maintain the reserves
     described above.

     6.19  Timeshare  Documents  and Reports.  The Borrower has furnished to the
Lender true and correct  copies of the Timeshare  Documents  listed on Exhibit D
hereto  which  consist  of all  those  placed on file by the  Borrower  with the
applicable Mexico regulatory authorities or any other appropriate federal, state
or local regulatory or recording agencies, offices or departments,  if required.
All such filings and/or recordations and all joinders and consents, necessary in
order to establish the plan with respect to the Unsold  Intervals and Encumbered
Intervals,   including,  without  limitation,  the  Units,  Intervals,  and  all
appurtenant  Facilities,  Common  Furnishings,  and all  related  use and access
rights  have been made or  obtained,  and all  statutes,  ordinances,  rules and
regulations,  and all agreements or  arrangements  in connection  therewith have
been complied with.

     6.20 Operating Contracts. The contracts, agreements and arrangements listed
and  described  in Exhibit G comprise  all of the  agreements  and  arrangements
relating  to the  operation  of the  Resorts to which  Borrower is a party or in
which  Borrower  holds any  interest  in and which in any way relate to the use,
occupancy,  maintenance  or enjoyment of the Unsold  Intervals or the Encumbered
Intervals,   including,   without   limitation,   with  respect  to   utilities,
maintenance,  management,  services,  marketing  and  sales  (collectively,  the
"Operating  Contracts").  All of the  Operating  Contracts are and shall (unless
Lender shall otherwise consent in advance in writing) remain unmodified, in full
force and  effect,  and free and clear of any Lien  except  the Lien in favor of
FINOVA.

     6.21 Architectural and Environmental Control. All Units, Facilities, Common
Furnishings  and other real or personal  property at, upon or appurtenant to the
Resorts  are and  will  continue  to be in  compliance  with  the  design,  use,
architectural and  environmental  control  provisions,  if any, set forth in the
Timeshare Documents.

     6.22  Tax  Identification/Social   Security  Numbers.  The  Borrower's  and
Guarantor's  respective federal  taxpayer's  identification  numbers,  or social
security numbers, are as follows:

                  Borrower:         Not Applicable

                  Guarantor:        76-0549149

     6.23 Improvements.

          (a) Zoning  Ordinances and Similar Laws. The  Improvements and the use
     of each of the Resorts has been  approved by all  appropriate  governmental
     and  quasi-governmental  authorities (if any), and accordingly,  comply and
     will  continue  to comply  with all  applicable  United  States and Mexican
     governmental   and   quasi-governmental   statutes,    ordinances,   rules,
     regulations and standard requirements,  including,  but not limited to, any
     Mexican  equivalent of the United States  Federal Fair Housing Act of 1968,
     as  amended,  and any  Mexican  equivalent  of the  United  States  Federal
     Americans with Disabilities Act of 1990.

                                       38
<PAGE>

          (b) Availability of Utilities.  All utility services necessary for the
     operation of the Resorts  have been  available in the past and, to the best
     of  Borrower's  knowledge  after  diligent  inquiry,  all utility  services
     necessary for the operation of the Improvements for their intended purposes
     shall continue to be available,  including water supply, storm and sanitary
     sewer facilities, electric and telephone facilities.

          (c) Condition of Resorts.  The Resorts are not now damaged as a result
     of any fire, explosion, accident, flood or other casualty.

          (d) Access.  The  rights-of-way  for all roads  necessary for the full
     utilization of each of the Resorts, for its intended purposes,  have either
     been  acquired  by the  appropriate  governmental  authority  or have  been
     dedicated to public use and accepted by such  governmental  authority,  and
     all such roads shall have been completed, or all necessary steps shall have
     been  taken by  Borrower  and such  governmental  authority  to assure  the
     complete construction and installation thereof prior to the date upon which
     access to the Resorts via such road will be reasonably necessary.  All curb
     cuts and traffic signals,  if any, are existing or have been fully approved
     by all necessary governmental authorities.

     6.24 Continuation and  Investigation.  The  representations  and warranties
contained  herein  shall  be and  remain  true  and  correct  so  long as any of
Borrower's  Obligations  hereunder have not been fully satisfied,  or so long as
any part of the Loan shall remain outstanding,  and each request by Borrower for
an  Advance  under the Loan  shall  constitute  an  affirmation  that all of the
foregoing  representations and warranties remain true and correct as of the date
thereof. All representations,  warranties,  covenants and agreements made herein
or in any  certificate or other document  delivered to Lender by or on behalf of
Borrower,  pursuant to or in connection with this Agreement,  shall be deemed to
have been relied upon by Lender, notwithstanding any investigation heretofore or
hereafter  conducted  by or on behalf of Lender and shall  survive the making of
any or all Advances and payments contemplated hereby.

     6.25 Exchange Control. Borrower is in compliance with all applicable United
States and Mexican exchange  control statutes and regulations,  and has paid all
fees required thereunder.

     6.26 Year 2000.

          (a)  Year  2000  Compliant.  Borrower  has  (i)  begun  analyzing  the
     operations of Borrower and its  subsidiaries  and affiliates  that could be
     adversely  affected by failure to become Year 2000 compliant (that is, that
     computer  applications,  imbedded microchips and other systems will be able
     to perform  date-sensitive  functions prior to and after December 31, 1999,
     including,  without limitation,  the function of completing reservations at
     the Resorts) and; (ii) developed a plan for becoming Year 2000 compliant in
     a timely manner, the implementation of which is on schedule in all material
     respects.  Borrower  reasonably  believes  that it will  become  Year  2000
     compliant  for  its  operations  and  for  those  of its  subsidiaries  and
     affiliates  on a timely  basis except to the extent that a failure to do so
     could not reasonably be expected to have a material adverse effect upon the
     financial condition of the Borrower.

          (b)  Suppliers,   Vendors,   Subsidiaries  and  Affiliates.   Borrower
     reasonably  believes  any  suppliers  and vendors  that are material to the
     operations of Borrower or its subsidiaries and affiliates will be Year 2000
     compliant for their own computer  applications  except to the extent that a
     failure  to do so could  not  reasonably  be  expected  to have a  material
     adverse effect upon the financial condition of Borrower.

          (c) Notice. Borrower will promptly notify Lender in the event Borrower
     determines  that  any  computer   application  which  is  material  to  the
     operations of Borrower,  its subsidiaries or any of its material vendors or
     suppliers will not be fully Year 2000  compliant on a timely basis,  except
     to the extent that such failure could not  reasonably be expected to have a
     material adverse effect upon the financial condition of Borrower.

     6.27 FINOVA Loan and the Indenture. The execution, delivery and performance
of this  Agreement  does  not and  will  not  violate  any  provision  of law or
administrative regulation, any order of any court or other agency of government,
any provision of any indenture,  agreement or other instrument to which Borrower
or Guarantor is a party (specifically  including the FINOVA Loan Agreement,  the
Indenture and the Mirror Notes), or by which Borrower or Guarantor or any of the

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Borrower's or  Guarantor's  properties or assets are bound,  and is not and will
not be in conflict  with,  result in a breach of or constitute  (with due notice
and/or  lapse of time) a default  under any such  indenture,  agreement or other
instrument  (specifically including the FINOVA Loan Agreement, the Indenture and
the Mirror Notes),  and is not and will not result in the creation or imposition
of any lien,  charge or  encumbrance  of any nature  whatsoever  upon any of the
properties  or assets of Borrower or Guarantor  except as expressly  provided in
this  Agreement.  Neither  Borrower nor  Guarantor is in default in any material
respect  under any  agreement or other  instrument  to which it is a party or by
which it may be bound,  specifically  including the FINOVA Loan  Agreement,  the
Indenture and the Mirror Notes.  The Loan is "Permitted  Debt",  as such term is
defined in Section  4.09(b)  of the  Indenture.  As  provided  in the  Guaranty,
Guarantor  covenants with Lender that (a) as and when required by the Indenture,
the Guarantor shall cause the Issuers (as such term is defined in the Indenture)
to  supply  the  Lender  with  true  and   complete   copies  of  all   reports,
certifications,  notices or demands  given by the  Issuers  under the  Indenture
(including, but not limiting the generality of the foregoing, materials required
by Sections 4.03,  4.04,  4.21, 7.06, and Article 8 of the Indenture) and (b) it
will not amend or modify the  Indenture  without  the prior  written  consent of
Lender and any such amendment or  modification to the Indenture made without the
prior written consent of Lender shall not be binding upon Lender. As provided in
the Guaranty,  Guarantor further agrees to cause Issuers to promptly (but in any
event within three (3) days after Issuer's receipt of same) supply Lender with a
true and complete  copy of any notice sent to Issuers  under Section 6.01 of the
Indenture,  or any other  notice  alleging  a default  by the  Issuer  under the
Indenture.

Section 7. COVENANTS.

     7.1  Affirmative  Covenants.  So long  as any  portion  of the  Obligations
remains  unsatisfied,  Borrower  hereby  covenants  and  agrees  with  Lender as
follows:

          (a) Payment and Performance of  Obligations.  Borrower shall repay all
     of the Loan and all  related  amounts  when and as the same  become due and
     payable,  and  Borrower  shall  strictly  observe  and  perform  all of the
     Obligations,  including  without  limitation,  all  covenants,  agreements,
     terms, conditions and limitations contained in the Loan Documents, and will
     do all things  necessary  which are not  prohibited  by law to prevent  the
     occurrence  of any Event of Default  hereunder;  and,  pursuant  to Section
     12.23 of this Agreement,  Borrower will maintain an office or agency in the
     State of Texas where notices, presentations and demands with respect to the
     Loan Documents may be made upon Borrower,  such address being: c/o Raintree
     Resorts  International,  Inc.,  10000 Memorial Drive,  Suite 480,  Houston,
     Texas 77024.  The books and records of Borrower  shall be maintained at the
     Resorts until such time as Borrower shall notify Lender, in writing, of any
     change of location of such office or agency.

          (b) Maintenance of Existence, Qualification and Assets. Borrower shall
     at  all  times  (i)  maintain  its  legal  existence,   (ii)  maintain  its
     qualification,  where  required,  to transact  business in good standing in
     Mexico  and in  any  other  jurisdiction  where  it  conducts  business  in
     connection with the Resorts,  and (iii) comply or cause compliance with all
     applicable statutes,  ordinances,  rules and regulations  applicable to the
     Unsold  Intervals or the  Encumbered  Intervals,  Borrower or its business,
     including,  without limitation,  the Timeshare Act and all other applicable
     timeshare and consumer protection acts and regulations.

          (c)  Consolidation  and  Merger.  Unless  Borrower  shall  have  first
     obtained Lender's prior written approval, which may be granted, withheld or
     conditioned in Lender's sole discretion, Borrower will not consolidate with
     or merge into any other  Person or permit any other  Person to  consolidate
     with or merge into it, provided,  however,  that the foregoing  restriction
     shall  not apply to  Borrower  if one or more of the  Persons  constituting
     Borrower is  consolidated  with or merged into  another  entity  controlled
     directly or  indirectly by Guarantor  and such  resulting  entity has a net
     worth not less than that of the consolidated or merged entity.

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<PAGE>

          (d)  Maintenance  of Insurance.  Borrower  shall maintain at all times
     during the term of this  Agreement,  policies of  insurance  with  premiums
     therefor being paid when due, and shall deliver to Lender  certified copies
     of insurance  policies  issued by insurance  companies  (together with paid
     premium invoices in respect thereof), in amounts, in form and in substance,
     and with expiration dates, all acceptable to Lender and containing  waivers
     of subrogation  rights by the insuring company,  non-contributory  standard
     mortgagee  benefit clauses or their  equivalents and mortgagee loss payable
     endorsements in favor of and  satisfactory to Lender and breach of warranty
     coverage, providing the following types of insurance on and with respect to
     Borrower and each of the Resorts:

               (i) As to all the  Improvements  that have already been completed
          as of the date hereof,  "All Risk  Special  Form"  insurance  coverage
          (including fire, lightning, hurricane, tornado, wind and water damage,
          earthquake,  vandalism and malicious  mischief  coverage) covering all
          real and personal  property which  comprise the Resorts,  in an amount
          not less  than the full  replacement  value of such  improvements  and
          personal  property,  and said policy of insurance  shall provide for a
          deductible   acceptable  to  Lender,   breach  of  warranty  coverage,
          replacement cost  endorsements  satisfactory to Lender,  and shall not
          permit co-insurance.  All insurance shall specifically cover architect
          and  engineering  fees  necessary  to repair or  replace  any  insured
          portion of the Resorts and shall cover debris removal;

               (ii) Public liability and property damage insurance  covering the
          Resorts in amounts and on terms satisfactory to Lender;

               (iii) Such other insurance on the Resorts or any  replacements or
          substitutions  therefor,  including,  without  limitation,  rent loss,
          business  interruption,  flood insurance (if any of the Resorts are or
          become  located  in an area  which is  considered  a flood risk by any
          Mexican  equivalent of the U.S. Federal Emergency  Management  Agency,
          pursuant  to the  National  Flood  Insurance  program or  pursuant  to
          Mexican  programs),  in such  amounts  and upon such terms as may from
          time to time be reasonably required by Lender; and

               Lender shall expressly be named an insured and loss payee in each
          insurance policy  described in this Section 7.1(d).  To the extent any
          "institutional  mortgagee,"  "institutional lender" or "mortgagee" (as
          defined  or  used  in  the  Declaration  or  the  remaining  Timeshare
          Documents)  other than  Lender  has any rights to approve  the form of
          insurance  policies  with  respect  to the  Resorts,  the  amounts  of
          coverage   thereunder,   the  insurers  under  such  policies  or  the
          designation of an attorney-in-fact for purposes of dealing with damage
          to any part of the  Resorts or  insurance  claims or  matters  related
          thereto or any successor to such  attorney-in-fact or any changes with
          respect to any of the foregoing,  Borrower shall take all steps as may
          be  necessary to ensure that Lender shall at all times have a co-equal
          right  with  such  other  "institutional   mortgagee,"  "institutional
          lender" or other "mortgagee" (including, without limitation,  Borrower
          or any  third-party  lender),  to  approve  all such  matters  and any
          proposed changes in respect thereof; and Borrower shall not cause, and
          shall use its best  efforts to  prohibit,  any changes with respect to
          any  insurance  policies,  insurers,  coverage,   attorney-in-fact  or
          insurance trustees, if any, without Lender's prior written approval.

               Subject to the provisions of the Intercreditor  Agreement, in the
          event of any insured  loss or claim with respect to all or any portion
          of the Resorts, the Unsold Intervals,  the Encumbered Intervals or any
          Units  which  relate  to such  Intervals,  Borrower  shall  apply  all
          proceeds of such insurance  policies in a manner  consistent  with the
          Timeshare  Documents,  the  Timeshare  Act  and all  other  applicable
          statutes, ordinances, rules and regulations.

               All insurance  policies  required  pursuant to this Agreement (or
          the Timeshare  Documents or the Timeshare  Act) shall provide that the
          coverage  afforded  thereby shall not expire or be amended,  canceled,
          modified or terminated without at least thirty (30) days prior written
          notice to Lender and contain a provision affirming Lender's rights and
          benefits  thereunder  despite any violation of the  applicable  policy
          terms by Borrower or any other Person. At least thirty (30) days prior
          to the  expiration  date of each  policy  maintained  pursuant to this
          Section  7.1(d),  a renewal or  replacement  thereof  satisfactory  to

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<PAGE>

          Lender shall be delivered to Lender.  Borrower shall deliver to Lender
          receipts evidencing the payment of all premiums for all such insurance
          policies and renewals or  replacements.  The delivery of any insurance
          policies  hereunder  shall  constitute  an  assignment of all unearned
          premiums as further  security for the  Obligations.  In the event that
          Borrower shall fail to make all required premium payments for all such
          insurance  policies at least thirty (30) days prior to the  expiration
          date of each policy  maintained  pursuant to Section 7.1(d),  Borrower
          shall  immediately  notify Lender in writing of such failure to timely
          pay the required insurance  premiums.  Borrower shall have thirty (30)
          days  from  receipt  of a  written  request  from  Lender to cause the
          required  insurance  premiums to be paid.  If the  required  insurance
          premiums are not paid within such thirty (30) day period,  Lender may,
          in its sole discretion, without any obligation to do so, choose to pay
          such required insurance premiums on behalf of Borrower,  in which case
          Borrower shall pay Lender interest at the Default Rate for any amounts
          so advanced until such sums are repaid to Lender.  Lender may also, in
          its sole discretion,  in the event the required insurance premiums are
          not paid when due,  establish an insurance  escrow  account from which
          Lender  may  make  insurance  payments  on  behalf  of  Borrower  when
          insurance  premiums  shall  become  due.  If  the  required  insurance
          premiums  are not paid as required  and Lender  elects not to pay such
          insurance premiums or establish an escrow account for payment thereof,
          such failure shall constitute an Event of Default hereunder.

               In the event of any fire or other  casualty to or with respect to
          all or any portion of the Resorts,  Borrower  covenants  that it shall
          promptly  restore,  repair or replace  the damaged  portion(s)  of the
          Resorts and repair or replace any other personal  property to the same
          condition as  immediately  prior to such fire or other  casualty  and,
          with respect to the real and personal property comprising the Resorts,
          in accordance with the terms of the Timeshare Documents, the Timeshare
          Act  and  all  other  applicable  statutes,   ordinances,   rules  and
          regulations.  The insufficiency of any net insurance proceeds shall in
          no way  relieve  Borrower  of its  obligations  as set  forth  herein.
          Borrower  covenants that it shall comply promptly and cause compliance
          with  the  provisions  of the  Declaration  and  the  other  Timeshare
          Documents, and of the Timeshare Act and all other applicable statutes,
          ordinances, rules and regulations relating to such restoration, repair
          or replacement.  In Lender's sole discretion (but subject to the terms
          of the Intercreditor Agreement),  all insurance proceeds payable to or
          received  by Lender  pursuant  to the  Declaration  or the  applicable
          insurance  policies may be applied to the payment of the  Obligations,
          whether or not due and in whatever  order  Lender  elects,  consistent
          with the terms of the applicable insurance policy and the Declaration.

               Borrower  shall in good faith  cooperate with Lender in obtaining
          for Lender the benefits of any insurance or other proceeds lawfully or
          equitably  payable  to  Borrower  or  Lender  in  connection  with the
          transactions   contemplated   hereby  and  in  paying  any  Obligation
          (including  the payment by  Borrower of the expense of an  independent
          appraisal  on behalf  of  Lender  in case of a fire or other  casualty
          affecting the Resorts).

          (e)  Maintenance  of Security.  Borrower shall execute and deliver (or
     cause to be executed  and  delivered)  to Lender all  security  agreements,
     financing  statements,  assignments and such other  agreements,  documents,
     instruments and certificates,  and all supplements and amendments  thereto,
     and take such other  actions,  as Lender deems  necessary or appropriate in
     order to maintain as valid,  enforceable and perfected first priority liens
     and security  interests  (subject to the Permitted FINOVA Liens), all Liens
     and security  interests in the  Collateral  granted to Lender to secure the
     Obligations.  Borrower  shall not grant  extensions of time for the payment
     of, or compromise  for less than the full face value or release in whole or
     in part,  any Purchaser or other Person liable for the payment of, or allow
     any credit  whatsoever  except for the amount of cash to be paid upon,  any
     Collateral or any instrument,  chattel paper or document  representing  the
     Collateral.

          (f) Payment of Taxes and Claims.  Borrower  shall pay,  when due,  all
     taxes imposed on or with respect to the Loan or any of the Loan  Documents,
     the Collateral,  the Unsold  Intervals,  the Encumbered  Intervals or on or
     with respect to Borrower or any income, property or profits of Borrower and
     shall  pay  all  other  charges  and  assessments  against  Borrower,   the
     Collateral,  the Unsold  Intervals and the Encumbered  Intervals before any
     claim (including, without limitation, claims for labor, services, materials

                                       42
<PAGE>

     and supplies)  arises for sums which have become due and payable.  Borrower
     covenants  that Borrower shall pay when due, all taxes imposed upon each of
     the Resorts, or any of its assets or with respect to any of its franchises,
     businesses,  income or profits. Borrower shall make good faith inquiry on a
     regular basis to determine if the required  taxes have been paid.  Borrower
     shall immediately notify Lender in writing of any failure to timely pay all
     taxes when due. In the event that Lender  determines  (through  notice from
     Borrower  or  otherwise)  that  such  taxes  have not been  paid  when due,
     Borrower shall have thirty (30) days from receipt of a written  request for
     payment from Lender to cause the required taxes with respect to the Resorts
     to be paid. If such required taxes (and any applicable late charges,  etc.)
     are not paid within  such  thirty (30) day period,  Lender may, in its sole
     discretion,  without any  obligation  to do so, choose to pay such taxes on
     behalf of Borrower, in which case Borrower shall pay Lender interest at the
     Default Rate for any sums so advanced until such sums are repaid to Lender;
     Lender  may  also,  in its  discretion  (but  subject  to the  terms of the
     Intercreditor  Agreement),  in the event the required taxes with respect to
     each of the Resorts are not paid when due,  establish a tax escrow  account
     from which Lender may,  make tax payments on behalf of Borrower  when taxes
     shall become due. In the event Lender elects not to pay the required  taxes
     or establish a tax escrow  account,  and the required taxes for the Resorts
     are not paid as set forth above,  such failure shall constitute an Event of
     Default hereunder.  Borrower shall pay, where applicable, all other charges
     and  assessments  levied  against  Borrower,  the Collateral or the Resorts
     before  any  claim  (including,   without  limitation,  claims  for  labor,
     services,  materials and supplies) arises for amounts which have become due
     and payable.  Except for the Liens in favor of Lender  granted  pursuant to
     the Loan  Documents,  and except as  otherwise  specifically  provided  for
     herein,  Borrower  covenants  that in the event that any statutory or other
     Liens whatsoever (including, without limitation, mechanics', materialmen's,
     judgment  or tax liens)  attach to any of the  Collateral  (except  for the
     Permitted Liens and Encumbrances  which include,  without  limitation,  the
     lien for taxes not yet due and payable), Borrower shall, within thirty (30)
     days  after  any such  Lien  attaches,  either  (i)  cause  such Lien to be
     released of record;  or (ii) provide Lender with a bond in accordance  with
     the applicable laws of Mexico,  issued by a corporate surety  acceptable to
     Lender, in an amount and form acceptable to Lender.

          (g)  Inspections.  Borrower shall, at any time, and from time to time,
     upon  reasonable  notice and at the expense of Borrower,  including but not
     limited to the reasonable travel expenses of Lender's agents, permit Lender
     or its  agents or  representatives  to  inspect  each of the  Resorts,  the
     Collateral and any of Borrower's,  Guarantor's,  any Material  Party's,  or
     Lockbox Agent's assets,  including, but not limited to, all documents, bank
     statements,  and other records  within  Borrower's  possession,  custody or
     control,  and to  examine  and  make  copies  of and  abstracts  from  such
     materials and to discuss its affairs, finances and accounts with any of its
     officers,  employees,  Affiliates,  contractors  or  independent  certified
     public  accountants  (and  by  this  provision,  Borrower  authorizes  said
     accountants  to discuss with  Lender,  its agents or  representatives,  the
     affairs,  finances  and  accounts  of  Borrower).   Lender  agrees  to  use
     reasonable efforts not to unreasonably  interfere with Borrower's  business
     operations in connection with any such  inspections.  Without  limiting the
     foregoing,  Lender shall have the right to make such credit  investigations
     as Lender  may deem  appropriate  in  connection  with its  review of Notes
     Receivable  pledged or to be pledged to  Lender,  and  Borrower  shall make
     available to Lender all credit  information  in  Borrower's  possession  or
     under  its  control  or to  which  it may  have  access,  with  respect  to
     Purchasers  or other  obligors  under such Notes  Receivable  as Lender may
     request.

          (h) Reporting Requirements.  So long as any portion of the Obligations
     remains  unsatisfied,  Borrower  shall  furnish (or use its best efforts to
     cause  to be  furnished,  as the  case  may be) to  Lender,  in  each  case
     certified  in writing by Borrower  and the  Guarantor as true and correct ,
     the following:

               (i) Monthly  Financial  Reports.  As soon as available and in any
          event  within ten (10) days after the end of each  calendar  month,  a
          report showing (i) the trial balance of the Pledged Notes  Receivable;
          (ii) a current aging report on the Pledged Notes  Receivable;  (iii) a
          report  detailing  the  collections  on  each  of  the  Pledged  Notes
          Receivable; (iv) a delinquency report on all Pledged Notes Receivable;
          (v) a Borrowing  Base report;  (vi)  monthly  reports from the Lockbox
          Agent required  pursuant to the Lockbox  Agreement;  and (vii) monthly
          reports from the Servicing  Agent  required  pursuant to the Servicing
          Agreement;

                                       43
<PAGE>
               (ii) Quarterly Financial Reports. As soon as available and in any
          event within  forty-five  (45) days following the end of each calendar
          quarter,  unaudited  statements  of income and expense of Borrower and
          for each of the Resorts for the preceding quarterly period in question
          and balance  sheets of Borrower and for the Resorts as of the last day
          of such preceding  calendar  quarter,  all in such detail and scope as
          may be reasonably required by Lender, prepared in accordance with GAAP
          and on a basis consistent with prior accounting  periods and certified
          as  true  and  correct  by  Borrower's  chief  financial  officer,  as
          appropriate;

               (iii) Annual Financial  Reports.  As soon as available and in any
          event  within  one  hundred  twenty  (120)  days after the end of each
          fiscal year as may be  applicable  with  respect to  Borrower  and the
          Resorts  (a  "Fiscal  Year"),  statements  of income  and  expense  of
          Borrower and of the Resorts for the annual  period ended as of the end
          of such Fiscal Year, and balance sheets of Borrower and of the Resorts
          as of the end of such Fiscal Year, all in such detail and scope as may
          be  reasonably  required  by Lender and  prepared  and  reviewed by an
          independent  certified  Mexican public  accounting  firm acceptable to
          Lender in accordance  with GAAP and on a basis  consistent  with prior
          accounting periods. Each annual financial statement of Borrower and of
          the Resorts  shall be certified  by Borrower  and the  Guarantor to be
          true, correct and complete,  and shall otherwise be in form acceptable
          to Lender;

               (iv) Guarantor's  Financial  Statements.  Contemporaneously  with
          Borrower's  submission  to  Lender  of the  annual  financial  reports
          described in  SubSection  (iii)  immediately  above,  Guarantor  shall
          deliver to Lender its Financial Statements.  The Guarantor's Financial
          Statements  shall be in such  detail  and scope as may  reasonably  be
          required by Lender and  prepared by an  independent  certified  public
          accounting  firm  acceptable  to Lender in  accordance  with GAAP on a
          basis  consistent  with  prior  accounting  periods.  The  Guarantor's
          Financial  Statements  shall be dated as of the end of the immediately
          preceding  calendar  year or fiscal  year as  applicable  to each such
          Guarantor  and shall be certified as being true,  correct and complete
          by each such Guarantor;

               (v)  Officer's   Certificate.   Each  set  of  annual   Financial
          Statements  or reports  delivered  to the Lender  pursuant to Sections
          7.1(h)(i),  (ii) (iii) and (iv) of this Agreement shall be accompanied
          by a certificate  of the President or the Treasurer of Borrower in the
          form attached hereto as Exhibit H, setting forth that the signers have
          reviewed  the  relevant   terms  of  this  Agreement  (and  all  other
          agreements and exhibits between the relevant  parties),  have made, or
          caused  to  be  made,  under  their  supervision,   a  review  of  the
          transactions  and  conditions  of Borrower  from the  beginning of the
          period covered by the Financial  Statements or reports being delivered
          therewith to the date of the  certificate and that such review has not
          disclosed the  existence  during such period of any condition or event
          which  constitutes  a  Default  or Event of  Default  or,  if any such
          condition  or event  existed or exists or will exist,  specifying  the
          nature and period of  existence  thereof and what action  Borrower has
          taken or proposes to take with respect thereto;

               (vi)  Sales  Reports.  Within ten (10) days after the end of each
          month and each  Fiscal Year  quarter  ("Fiscal  Quarter"),  and within
          ninety (90) days after the end of each  Fiscal  Year,  Borrower  shall
          deliver to Lender, monthly,  quarterly and annually, as appropriate, a
          monthly,  quarterly or annual sales report, detailing the sales of all
          Unsold  Intervals  and  Encumbered  Intervals  for the period  covered
          thereby,  together with all Interval sales made by Borrower which have
          been canceled during such period.  Such monthly and quarterly  reports
          shall be  certified  by  Borrower,  and such annual  reports  shall be
          certified  by  Borrower  and the  Guarantor  to be true,  correct  and
          complete and otherwise in a form approved by Lender;

               (vii) Audit Reports.  Within thirty (30) days of receipt  thereof
          by Borrower,  one (1) copy of each other report  submitted to Borrower
          by independent  public accountants or other Persons in connection with
          any  annual,  interim  or  special  audit made by them of the books of
          Borrower;

                                       44
<PAGE>

               (viii)  Notice of Default or Event of Default.  Immediately  upon
          becoming  aware of the  existence  of any  condition  or  event  which
          constitutes  a  Default  or an  Event of  Default,  a  written  notice
          specifying the nature and period of existence  thereof and what action
          the Borrower is taking or proposes to take with respect thereto;

               (ix) Notice of Claimed  Default.  Immediately upon becoming aware
          that the  holder of any  material  obligation  or of any  evidence  of
          material  indebtedness of Borrower has given notice or taken any other
          action  with  respect  to  a  claimed  default  or  event  of  default
          thereunder,  a written  notice  specifying  the notice given or action
          taken by such holder and the nature of the claimed default or event of
          default  and what  action  Borrower is taking or proposes to take with
          respect thereto;

               (x) Material  Adverse  Developments.  Immediately  upon  becoming
          aware  of  any  claim,  action,   proceeding,   development  or  other
          information  which may materially and adversely affect  Borrower,  the
          Guarantor, any of the Collateral, all or any portion of one or more of
          the  Resorts,  or  the  business,   prospects,  profits  or  condition
          (financial or  otherwise)  of Borrower,  an event of default under the
          FINOVA  Loan,  the  Indenture  or  the  Mirror  Notes  or  a  fact  or
          circumstance  which,  upon the lapse of time, will lead to an event of
          default under the FINOVA Loan,  the Indenture or the Mirror Notes,  or
          the  ability  of  Borrower  to  perform  its  Obligations   under  the
          Agreement,   Borrower   shall  provide   Lender  with   telephonic  or
          telegraphic   notice,   followed  by  telecopied  and  mailed  written
          confirmation, specifying the nature of such development or information
          and the anticipated effect thereof;

               (xi) Other Information.  Borrower will promptly deliver to Lender
          any  other  information  related  to the  Loan,  the  Collateral,  the
          Resorts, Borrower or the Guarantor as Lender may in good faith request
          including, without limitation, annually, federal call reports relating
          to Lockbox Agent, if any. In addition, concurrently with the financial
          statements  described  in  Section  7.1(h)  above,  Borrower  and  the
          Guarantor  shall  cause  to  be  furnished  to  Lender  the  Financial
          Statements  as described  and  provided in the  Guaranty  from time to
          time;

               (xii) Hazardous Materials.  Borrower shall promptly notify Lender
          of any  change in the  nature or  extent  of any  Hazardous  Materials
          maintained  on, or under the  Resort  Property  or used in  connection
          therewith, and will deliver to Lender copies of any citation,  orders,
          notices or other material governmental or other communication received
          with   respect   to  any   other   Hazardous   Materials,   or   other
          environmentally  regulated  substances  affecting  any of the Resorts.
          Lender  shall  have the  right to  require  Borrower  to  periodically
          perform (at Borrower's  expense) an environmental audit and, if deemed
          reasonably necessary by Lender, an environmental risk assessment, each
          of which must be satisfactory to Lender,  in its sole  discretion,  of
          the  Resort  Property.  Such  audit  and/or  risk  assessment  must be
          conducted  by a  licensed  environmental  consultant.  All  costs  and
          expenses  incurred by Lender in the exercise of such rights shall bear
          interest at the Default  Rate set forth in the Note until paid,  shall
          be secured by the  Collateral  and shall be payable by  Borrower  upon
          demand or charged to  Borrower's  Loan  balance in the  discretion  of
          Lender;

               (xiii) Quarterly  Purchaser Reports.  As soon as available and in
          any  event  within  forty-five  (45)  days  following  the end of each
          calendar quarter, an updated listing of the name,  address,  and phone
          number of the consumer  obligor(s) for each Note Receivable  which has
          been  pledged  and  assigned  to Lender  pursuant to the terms of this
          Agreement.

          (i) Records. Borrower shall keep adequate records and books of account
     in accordance with GAAP  reflecting all financial  transactions of Borrower
     with respect to the Resort.  In addition,  Borrower  shall keep,  and shall
     promptly deliver to Lender upon Lender's request therefor, complete, timely
     and accurate  records of all sales of Intervals  and all payments made with
     respect to Pledged Notes Receivable.

                                       45
<PAGE>

          (j) Marketing  and  Management.  Borrower and the Guarantor  shall use
     their best efforts to keep, Borrower or a sales and marketing  organization
     contracted  with or employed by Borrower,  engaged in the active  marketing
     and sales of the Resorts, and Starwood Cancun, S. de R.L. de C.V., Starwood
     Los Cabos, S. de R.L. de C.V., and Starwood Puerto Vallarta,  S. de R.L. de
     C.V.,  engaged  in the  management  of the  Resorts  so that  each of these
     companies  continues  to  perform  duties  substantially  similar  to those
     presently  performed,  as provided in the  marketing,  sales and management
     agreement  relating  to the  Resorts.  In the event of the  resignation  or
     termination of any of the respective entities  referenced herein,  Borrower
     and the  Guarantor  shall use their  best  efforts to engage or cause to be
     engaged  within  three  (3)  months  after the date of any such  event,  as
     marketing  and sales agent or manager of the  Resorts,  a Person or Persons
     who have substantially  equivalent experience,  background and demonstrated
     ability  to  perform  services,   in  accordance  with  new  marketing  and
     management agreements,  respectively,  performed at the time of the Closing
     Date by the above-referenced  companies. Lender shall provide Borrower with
     its prior written consent to any change in the above-referenced entities.

          (k) Employee  Deductions.  Borrower  shall  furnish to Lender,  within
     forty-five (45) days after the expiration of each calendar  quarter,  proof
     satisfactory  to Lender that  Borrower's  obligations  to make all required
     employee deductions or withholdings at source for income tax, contributions
     to the Mexican Social  Security  Institute,  Borrower's  pension plan under
     Mexican  Labor Law and, if  applicable,  unemployment  insurance  have been
     satisfied.

          (l) Operating Contracts.  No Operating Contract to which Borrower is a
     party or as to which  Borrower's  consent or joinder is required,  shall be
     modified,  extended,  terminated by Borrower or entered  into,  without the
     prior written approval of Lender.

          (m) Guarantor.  Absent the prior written consent of Lender,  which may
     be granted or withheld  in Lender's  sole  discretion,  Guarantor,  through
     certain subsidiaries in which Guarantor holds a majority ownership interest
     (as set forth in Exhibit I attached hereto), shall, subject to the terms of
     Section 7.1(c)  hereof,  continue to own a majority  ownership  interest in
     each of the  Borrower  entities.  Borrower  shall not enter  into  proxies,
     voting  trusts,  shareholders  agreements or similar  arrangements  for the
     purpose of vesting  voting  rights,  authority or  discretion  in any other
     Person.

          (n) Notices.  Borrower  shall notify  Lender  within five (5) Business
     Days  of the  occurrence  of  any  event  (i)  as a  result  of  which  any
     representation  or  warranty of Borrower  contained  in any Loan  Documents
     would be incorrect or  materially  misleading if made at that time; or (ii)
     as a result of which  Borrower  is not in full  compliance  with all of its
     covenants and agreements  contained in this Agreement or any Loan Document;
     or (iii)  which  constitutes  or,  with the  passage  of time,  notice or a
     determination by Lender would constitute, an Event of Default.

          (o) Maintenance.  Borrower shall use its best efforts to maintain,  or
     cause to be maintained,  each of the Resorts in good repair,  working order
     and condition and to make all necessary  replacements  and  improvements to
     the Resorts so that the value and operating  efficiency of the Resorts will
     be maintained at all times and so that the Resorts remains in compliance in
     all respects with the Timeshare Act, the Timeshare  Documents and all other
     applicable statutes, ordinances, rules and regulations.

          (p) Claims.  Upon receiving  notice  thereof,  Borrower shall promptly
     notify  Lender of any  claim,  action or  proceeding  affecting  any of the
     Resorts or the  Collateral,  or any part  thereof,  or any of the  security
     interests  or rights  granted in favor of Lender  hereunder or under any of
     the other Loan Documents.  At the request of Lender,  Borrower shall appear
     in and defend in favor of Lender,  at Borrower's sole expense,  with regard
     to any such claim,  action or proceeding which might  materially  adversely
     affect  the value of all or any part of the  Collateral  or the  rights and
     remedies of Lender under this Agreement or any of the other Loan Documents.

          (q) Registration and Regulations.

                                       46
<PAGE>

               (i) Local Legal  Compliance.  The Borrower will comply,  and will
          use its best efforts to cause each of the Resorts to comply,  with all
          applicable servitudes, restrictive covenants, all applicable planning,
          zoning and land use  ordinances  and building  codes,  all  applicable
          health  and  Environmental   Laws  and  regulations,   and  all  other
          applicable statutes,  ordinances,  rules,  regulations,  court orders,
          agreements and  arrangements.  All  inspections,  licenses and permits
          required to be made or issued with respect to the  buildings and other
          improvements  in which the Units  related to the Unsold  Intervals and
          the  Encumbered  Intervals are located have been made or issued by the
          appropriate  governmental  authorities,  and the use and  occupancy of
          such  buildings  for  their  intended  purposes  is  lawful  under all
          applicable  statutes,   ordinances,   rules  and  regulations.   Final
          certificates of occupancy have been issued and are currently in effect
          for all completed  Units. The timeshare use and occupancy of Unsold or
          Encumbered  Intervals will not violate or constitute a  non-conforming
          use under any private  covenant or restriction  or any zoning,  use or
          similar statutes,  ordinances,  rules or regulations affecting the use
          or occupancy of the such Unsold Intervals.  All inspections,  licenses
          and  certificates  required to be made or issued  with  respect to any
          buildings,  improvements  or amenities which are related to the Unsold
          Intervals or the  Encumbered  Intervals and with respect to the use or
          occupancy  thereof,  including  but not  limited  to  certificates  of
          occupancy, have been made or issued by the appropriate authorities and
          the use or occupancy of all such buildings, improvements and amenities
          for their respective intended purposes are lawful under all applicable
          statutes, ordinances, rules, and regulations;

               (ii)  Registration  Compliance.   Borrower  shall  at  all  times
          maintain  or  cause  to be  maintained  all  necessary  registrations,
          current  filings,  consents,  franchises,   approvals,  and  exemption
          certificates,  and  Borrower  will make or pay, or cause to be made or
          paid,  all  registrations,  declarations  or fees with the  applicable
          Mexican regulatory  authorities and any other governmental agencies or
          departments  thereof,  whether  in  Mexico  or  another  jurisdiction,
          required  in  connection  with the  Unsold  Intervals  and  Encumbered
          Intervals  and  the  occupancy,   use  and  operation   thereof,   the
          incorporation of Units into the timeshare plan established pursuant to
          the  Declaration  and the  other  Timeshare  Documents,  and the sale,
          advertising,  marketing, and offering for sale of Unsold Intervals and
          Encumbered Intervals. All such registrations, filings and reports will
          be  truthfully  completed,  and  true  and  complete  copies  of  such
          registrations,  applications, consents, licenses, permits, franchises,
          approvals,  exemption  certificates,   filings  and  reports  will  be
          delivered to the Lender upon request.  Borrower shall advise Lender of
          any material  changes with respect to its marketing or sales  programs
          in any jurisdiction, including jurisdictions other than Mexico, and at
          Lender's  request from time to time,  Borrower shall deliver to Lender
          (A) written statements by the applicable governmental authorities,  in
          form  reasonably  acceptable to Lender stating that no registration is
          necessary for the sale of Intervals in the  particular  state;  (B) an
          opinion  of  counsel  in form  reasonably  acceptable  to  Lender  and
          rendered by counsel reasonably  acceptable to Lender,  stating that no
          such  registration  is  necessary;  or  (C)  such  other  evidence  of
          compliance with applicable laws as Lender may require; and

               (iii) Other Compliance.  The Borrower will continue to comply, in
          all  material  respects,  with all  statutes,  ordinances,  rules  and
          regulations  of the United  States (at such  possible time as Borrower
          markets or sells  Intervals  in the Resorts  within the borders of the
          United States),  Mexico, and any other applicable  federal,  state and
          local statutes,  ordinances,  rules and regulations including,  to the
          extent  applicable,  but not  limited  to:  (A) the  Land  Sales  Full
          Disclosure  Act;  (B) the  Condominium  Act;  (C)  Regulation Z of the
          Federal  Reserve  Board;  (D) the Equal  Credit  Opportunity  Act; (E)
          Regulation  B of the Federal  Reserve  Board;  (F) the  Federal  Trade
          Commission's  3-day  cooling-off  rule  for  Door-to-Door  Sales;  (G)
          Section 5 of the  Federal  Trade  Commission  Act;  (H) ILSA;  (I) the
          federal postal laws; (J) all applicable  state and federal  securities
          laws;  (K)  all  applicable  usury  laws;  (L)  all  applicable  trade
          practices, home and telephone solicitation,  sweepstakes, anti-lottery
          and consumer  credit and  protection  laws;  (M) all  applicable  real
          estate sales licensing, disclosure, reporting and escrow laws; (N) the
          ADA;  (O)  RESPA;  (P) all  amendments  to and rules  and  regulations

                                       47
<PAGE>

          promulgated under the foregoing acts or laws; (Q) all other applicable
          federal statutes and the rules and regulations promulgated thereunder;
          and (R) any Mexican law,  statute,  rule or regulation,  or the law of
          any other  jurisdiction  (and the rules  and  regulations  promulgated
          thereunder)  relating to ownership,  establishment or operation of the
          Collateral,  or the sale, offering for sale, marketing or financing of
          Intervals.

          (r) Other  Documents.  Borrower will maintain to the  satisfaction  of
     Lender, and make available to Lender,  accurate and complete files relating
     to the Encumbered Intervals,  the Pledged Notes Receivable,  and all of the
     other  Collateral,  and such files will contain true copies of each Pledged
     Note  Receivable,  as  amended  from time to time,  copies of all  relevant
     credit  memoranda  relating  to such Notes  Receivable  and all  collection
     information and correspondence relating thereto.

          (s) Further Assurances. Borrower will execute and deliver, or cause to
     be executed and delivered,  such other and further  agreements,  documents,
     instruments,  certificates  and  assurances  as, in the  judgment of Lender
     exercised  in  good  faith,   may  be  necessary  or  appropriate  to  more
     effectively  evidence  or  secure,  and to ensure the  performance  of, the
     Obligations.  In addition,  Borrower  shall  deliver to Lender from time to
     time, upon request by Lender, such documents, instruments and other matters
     or items as Lender may reasonably require to evidence Borrower's compliance
     with the covenants set forth in this Section 7.1.

          (t)  Utilities.  Borrower will use its best efforts to ensure that the
     manager of each of the  Resorts  will cause  electric,  gas,  sanitary  and
     stormwater  sewer,  water  facilities,  drainage  facilities,  solid  waste
     disposal,  telephone and other  necessary  utilities to be available to the
     Resorts in sufficient capacity to service the Resorts, including all Units,
     Facilities and Common Furnishings.

          (u)  Amenities.  Borrower will use its best efforts to ensure that the
     manager of each of the Resorts will cause the Resorts to be  maintained  in
     good  condition and repair,  and in accordance  with the  provisions of the
     applicable Timeshare  Documents,  and Borrower will use its best efforts to
     cause each  Purchaser of an Unsold  Interval or Encumbered  Interval at the
     Resorts to have  continuing  access to, and the use of during the period of
     any occupancy of the Units, all of the Facilities,  Common  Furnishings and
     related or appurtenant  services,  rights and benefits,  all as provided in
     the Declaration and the other Timeshare Documents.

          (v)  Expenses  and  Closing  Fees.  Whether  or not  the  transactions
     contemplated hereunder are consummated,  Borrower shall pay all expenses of
     Lender  relating  to  negotiating,   preparing,  documenting,  closing  and
     enforcing this Agreement and the other Loan Documents,  including,  but not
     limited to:

               (i)  the  cost  of  preparing,   reproducing   and  binding  this
          Agreement,  the other Loan  Documents  and all exhibits and  schedules
          thereto;

               (ii)  the fees  and  disbursements  of  Lender's  and  Borrower's
          counsel;

               (iii) Lender's out-of-pocket expenses;

               (iv) all fees  and  expenses  (including  fees  and  expenses  of
          Lender's  counsel)  relating to any amendments,  waivers,  consents or
          subsequent  closings or other transactions  pursuant to the provisions
          hereof;

               (v) all costs, outlays, legal fees and expenses of every kind and
          character had or incurred in: (A) the interpretation or enforcement of
          any of the provisions of, or the creation, preservation or exercise of
          rights and remedies  under,  any of the Loan  Documents  including the
          costs of appeal;  (B) the  preparation  for,  negotiations  regarding,
          consultations  concerning,  or the  defense  or  prosecution  of legal
          proceedings  involving any claim or claims made or threatened  against
          the Lender  arising out of this  transaction  or the protection of the
          Collateral  securing the Loan or Advances  made  hereunder,  expressly
          including,  without  limitation,  the  defense  by Lender of any legal
          proceedings  instituted or threatened by any Person to seek to recover

                                       48
<PAGE>

          or set aside any payment or set off theretofore received or applied by
          the Lender with  respect to the  Obligations,  and any and all appeals
          thereof;  and (C) the  advancement of any expenses  provided for under
          any of the Loan Documents;

               (vi) all expenses relating to the maintenance and  administration
          of the Lockbox and Lockbox  Account by the Lockbox  Agent and all fees
          and  expenses  of the  Servicing  Agent  and any  escrow  by any title
          insurance company, any Mexican Notary, or any other escrow agent;

               (vii) the  custodial  fees  payable to Lender with respect to the
          original Pledged Notes Receivable and related Collateral;

               (viii) all costs and expenses  incurred by Lender under the Note,
          and all late charges payable under the Note; and

               (ix)  all real  and  personal  property  taxes  and  assessments,
          documentary stamp and intangible taxes,  sales taxes,  recording fees,
          title insurance  premiums and other title charges,  document  copying,
          transmittal  and binding  costs,  appraisal  fees,  lien and  judgment
          search costs,  both Borrower's and Lender's  attorneys'  fees, fees of
          architects,  engineers,  environmental consultants,  surveyors and any
          special  consultants,  construction  inspection  fees,  brokers  fees,
          escrow fees,  wire  transfer  fees,  and all travel and  out-of-pocket
          expenses of Lender to conduct inspections or audits.  Without limiting
          any of the foregoing,  Borrower shall pay the costs of UCC (or Mexican
          equivalent) and other searches,  UCC (or Mexican equivalent) and other
          Loan  Document  recording  and filing  fees and  applicable  taxes and
          premiums on each  mortgagee  policy of title  insurance  delivered  to
          Lender pursuant to this Agreement.

          (w) Indemnification of Lender. In addition to (and not in lieu of) any
     other  provisions of any Loan Document  providing  for  indemnification  in
     favor of Lender,  Borrower hereby  defends,  indemnifies and holds harmless
     Lender,  its  subsidiaries,   Affiliates,   officers,   directors,  agents,
     employees,   representatives,   consultants,   contractors,  servants,  and
     attorneys,  as  well as the  respective  heirs,  personal  representatives,
     successors and assigns of any or all of them (hereinafter  collectively the
     "Indemnified Lender Parties"), from and against, and agrees promptly to pay
     on  demand  or  reimburse  each  of  them  with  respect  to,  any  and all
     liabilities,   claims,   demands,   losses,  damages,  costs  and  expenses
     (including without limitation,  reasonable  attorneys' and paralegals' fees
     and  costs),  actions  or causes of action of any and every  kind or nature
     whatsoever  asserted  against  or  incurred  by any of them by reason of or
     arising  out  of or in  any  way  related  or  attributable  to:  (i)  this
     Agreement, the other Loan Documents, the Commitment or the Collateral; (ii)
     the transactions contemplated under any of the Loan Documents or any of the
     Timeshare  Documents,  including  without  limitation,  those  in  any  way
     relating to or arising out of the violation of any applicable United States
     or  Mexican  federal,  state  or  local  statutes,   ordinances,  rules  or
     regulations;  (iii)  any  breach  of  any  covenant  or  agreement  or  the
     incorrectness  or  inaccuracy  of any  representation  or  warranty  of the
     Borrower  contained  in  this  Agreement  or  any  of  the  Loan  Documents
     (including  without  limitation any certification of the Borrower delivered
     to the Lender;  (iv) any and all taxes,  including  real  estate,  personal
     property,  sales, mortgage,  excise,  intangible or transfer taxes, and any
     and all fees or charges, including, without limitation, those arising under
     the Timeshare  Act,  which may at any time arise or become due prior to the
     payment,  performance  and  discharge in full of the  Obligations;  (v) the
     breach of any  representation or warranty as set forth herein regarding any
     Environmental  Laws; (vi) the failure of Borrower to perform any obligation
     or covenant herein required to be performed  pursuant to any  Environmental
     Laws; (vii) the use,  generation,  storage,  release,  threatened  release,
     discharge,  disposal or presence  on,  under or about any of the Resorts of
     any  Hazardous  Materials in violation of  applicable  Environmental  Laws;
     (viii) the removal or  remediation  of any Hazardous  Materials from any of
     the Resorts required to be performed  pursuant to any Environmental Laws or
     as a  result  of  recommendations  of any  environmental  consultant  or as
     required by Lender; (ix) claims asserted by any Person (including,  without
     limitation,  any  governmental or  quasi-governmental  agency,  commission,
     department,  instrumentality  or body, court,  arbitrator or administrative
     board [hereinafter  collectively,  a "Governmental Agency"]), in connection

                                       49
<PAGE>

     with or any in any way arising out of the presence, use, storage, disposal,
     generation,   transportation,   release,  or  treatment  of  any  Hazardous
     Materials on, in, under or affecting any of the Resorts;  (x) the violation
     or  claimed  violation  of any  Environmental  Laws in regard to any of the
     Resorts; or (xi) the preparation of an environmental audit or report on the
     Resorts  not to exceed  one (1) per  calendar  year and  premised  upon the
     Lender's reasonable belief of the existence of a violation of Environmental
     Laws,  whether  conducted  by Lender,  Borrower  or a third  party,  or the
     implementation of environmental audit recommendations. Such indemnification
     shall not give Borrower or the Guarantor  any right to  participate  in the
     selection of counsel for Lender or the conduct or settlement of any dispute
     or proceeding for which  indemnification  may be claimed.  Lender agrees to
     give  Borrower  written  notice  of  the  assertion  of  any  claim  or the
     commencement  of any action or lawsuit  covered by this Section.  It is the
     express intention of the parties hereto that the indemnity  provided for in
     this Section,  as well as the disclaimers of liability  referred to in this
     Agreement,  are intended to and shall protect and indemnify Lender from the
     consequences of Lender's own negligence,  whether or not that negligence is
     the sole or concurring cause of any liability,  obligation,  loss,  damage,
     penalty,  action,  judgment, suit, claim, cost, expense or disbursement but
     not from the  consequences  of  Lender's  own gross  negligence  or willful
     misconduct.  The provisions of this Section shall survive the full payment,
     performance  and discharge of the  Obligations  and the termination of this
     Agreement, and shall continue thereafter in full force and effect.

          (x) No Amounts Due.  Borrower  shall  deliver a statement to Lender at
     the end of each calendar year,  commencing in the present calendar year and
     continuing  throughout the Term of the Loan, indicating any amounts due and
     payable to Borrower  from the  Guarantor  or any  Affiliate of Borrower and
     further  indicating  that all taxes and insurance  premiums  payable by the
     Borrower have been paid when due. Borrower hereby covenants that, as of the
     date of this  Agreement,  except as set forth on the  financial  statements
     heretofore  delivered by Borrower to Lender, no amounts are due and payable
     to the Borrower from the  Guarantor or any Affiliate of Borrower.  Borrower
     agrees to submit  annually to Lender,  within  thirty (30) days after it is
     available,  the proposed annual maintenance and operating budget of each of
     the Resorts, certified by the manager thereof.

          (y) Loan Servicing.  The Servicing Agent and Servicing Agreement shall
     be in form and  content  satisfactory  to Lender  and  shall be  reasonably
     acceptable to Borrower.  Borrower may not terminate the Servicing Agreement
     without Lender's prior written approval.  The Servicing  Agreement shall be
     cancelable by Lender  immediately  following the  occurrence of an Event of
     Default. If the Servicing Agent is Borrower or an Affiliate of Borrower, no
     servicing  fees shall be paid during or with  respect to any period of time
     in which an uncured Event of Default exists.

          (z) Use of Borrower's  Name.  Upon Borrower's  prior written  consent,
     Borrower  shall at all times  during the term of the Loan permit  Lender to
     use the name of Borrower, any of its Affiliates,  Guarantor and the Resorts
     in any press release,  advertisement or other promotional  materials issued
     regarding the Loan.

          (aa)  Withholding  Tax. For so long as any of the  Obligations  remain
     outstanding, Borrower agrees to take all steps now or hereafter required in
     order to avoid the imposition of  withholding  taxes under Section 871, 881
     and  1442  of the  United  States  Federal  Internal  Revenue  Code  or any
     successor  statutes.  Without  limiting the  generality  of the  foregoing,
     Borrower  hereby  agrees,  for so  long  as any of the  Obligations  remain
     outstanding  not to engage in a United  States trade or  business,  as that
     term is interpreted  under the United States Federal Internal Revenue Code.
     In that regard,  but without  limiting  the  generality  of the  foregoing,
     Borrower  agrees  to  engage  in  no  operational,  marketing,  collection,
     administrative,  servicing or other business  within the United States.  To
     the extent that Borrower  retains the services of an Affiliate for purposes
     of performing operational, marketing, collection, administrative, servicing
     or other  business  activities  for the benefit of Borrower,  such business
     activities shall be conducted  pursuant to arm's-length  pricing and terms,
     and be evidenced by a written agreement approved by Lender.  Borrower shall
     abide by all of its  obligations  under such agreement in a timely fashion.
     Any such Affiliate retained to perform such business activities on the part
     of Borrower  shall have,  in the past,  performed  similar  businesses  and
     services with and on behalf of persons or entitles other than Borrower;

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<PAGE>

     7.2 Covenants of Borrower and Guarantor.  Borrower and the Guarantor hereby
covenant and agree with Lender as follows:

          (a) Ad Valorem and Real Estate Taxes. Subject to the provisions of any
     of the other Loan  Documents,  Borrower  shall submit  evidence in form and
     content  acceptable to Lender,  on an annual basis,  that all applicable ad
     valorem,  if any, and other real property taxes due with respect to each of
     the Resorts have been timely paid.

          (b)  Application of Loan Proceeds.  Borrower shall use the proceeds of
     the Loan solely for the purpose set forth herein and for no other purpose.

          (c) Sign Regarding Financing.  If requested by Lender, Borrower shall,
     at  Lender's  cost (to be  pre-approved  by  Lender),  promptly  erect  and
     maintain,  at each of the  Resorts,  on a site  suitable to Lender,  and in
     accordance  with applicable law, a sign indicating that Lender is providing
     financing for the Resorts,  all to Lender's  reasonable  satisfaction,  and
     Borrower  shall use its best efforts to prevent the  destruction or removal
     of said sign without Lender's prior written approval.

          (d) Notification of Claims by Subcontractors and Materialmen. Borrower
     shall advise  Lender  promptly in writing if Borrower  receives any notice,
     written  or  oral,  from  any  laborer,  subcontractor  or  materialman  in
     connection with any labor or materials furnished in the construction of any
     improvements on the Resort Property.

     7.3 Negative  Covenants.  So long as any portion of the Obligations remains
unsatisfied, Borrower hereby covenants and agrees with Lender as follows:

          (a)  Limitation  on Other  Debt/Further  Encumbrances.  Except for the
     Permitted  Debt  and  except  as  may  be  expressly  provided  for  in the
     Intercreditor Agreement,  Borrower will not obtain financing or grant liens
     with respect to the Collateral,  any Units,  Unsold  Intervals,  Encumbered
     Intervals,  Notes  Receivable  or other  accounts  receivable  (whether now
     existing or created hereafter) other than those in favor of Lender, without
     the prior  written  consent of Lender,  which may be  granted,  withheld or
     conditioned, in Lender's sole discretion.

          (b) Restrictions on Transfers.  Borrower shall not, without  obtaining
     the prior written  consent of Lender (which consent may be given,  withheld
     or conditioned by Lender, in Lender's sole discretion), whether voluntarily
     or  involuntarily,  by operation of law or otherwise  (except to the extent
     that such transfers constitute or would constitute Permitted FINOVA Liens):
     (i) transfer,  sell, pledge, convey,  hypothecate,  factor or assign all or
     any portion of any of the Resorts or the Collateral,  or contract to do any
     of the foregoing,  including,  without  limitation,  pursuant to options to
     purchase and so-called  "installment sales contracts," "land contracts," or
     "contracts  for deed"  (except that  Borrower  shall have the right to sell
     Intervals to Purchasers in arms-length  transactions in the ordinary course
     of  Borrower's  business);  (ii)  lease  or  license  any  portion  of  the
     Collateral, or change the legal or actual possession or use thereof (except
     rental of Intervals in the ordinary course of Borrower's  business);  (iii)
     permit the dilution,  transfer, pledge, hypothecation or encumbrance of any
     of the Intervals of Borrower except to Borrower's  Affiliates or for estate
     planning  purposes  (except  with  respect  to the  sale  of  Intervals  to
     Purchasers in arms length  transactions  in the ordinary course of business
     and except to the extent that such transfers constitute or would constitute
     Permitted FINOVA Liens); (iv) permit the assignment,  transfer, delegation,
     change,  modification  or diminution of the duties or  responsibilities  of
     Borrower  or the  Guarantor;  or (v) to the extent  within  the  control of
     Borrower,  cause or permit the assignment,  pledge or other  encumbrance of
     any of the Operating  Contracts or all or any portion of Borrower's  right,
     title or interest in the Declaration or the remaining Timeshare  Documents.
     Without limiting the generality of the preceding  sentence,  and subject to
     the terms of this  Agreement,  the prior written consent of Lender shall be
     required for (A) any transfer of the Collateral or any part thereof (except
     with  respect  to the  sale of  Intervals  to  Purchasers  in  arms  length
     transactions  in the  ordinary  course of business and except to the extent
     that such transfers  constitute or would constitute Permitted FINOVA Liens)
     made to a subsidiary or other  Affiliate of Borrower or otherwise;  (B) any
     transfer  of  all  or  any  part  of  the  Collateral  by  Borrower  to its
     shareholders  or  Affiliates  or vice versa;  (C) any  corporate  merger or
     consolidation,  disposition  or other  reorganization  except in accordance
     with Section 7.1(c) of this  Agreement;  (D) any change in the ownership or

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<PAGE>

     management  responsibility  of Borrower or a material adverse change in the
     business or financial  condition  of  Borrower;  and (E) any transfer of or
     change in the status of Guarantor  (through  certain  subsidiaries in which
     Guarantor holds a majority  ownership  interest,  as set forth in Exhibit I
     attached hereto) as the majority  ownership  interest holder in each of the
     Borrower  entities,  except as expressly provided in Section 7.1(c) hereof.
     In the event  that  Lender,  in  Lender's  sole  discretion,  is willing to
     consent to a transfer  which would  otherwise be prohibited by this Section
     7.3(b)  Lender may  condition  its  consent  on such  terms as it  desires,
     including,  without  limitation,  an increase in the Interest Rates and the
     requirement  that Borrower pay a transfer  fee,  together with any expenses
     incurred  by  Lender  in  connection  with  the  granting  of such  consent
     (including, without limitation,  attorneys' fees and expenses). If Borrower
     violates the terms of this Section 7.3(b),  in addition to any other rights
     or remedies which Lender may have hereunder, in any other Loan Document, or
     at law or in equity,  Lender may, by written notice to Borrower,  increase,
     effective  immediately as of the date of such violation,  the Interest Rate
     to the  Default  Rate.  Notwithstanding  anything  to the  contrary in this
     Section  7.3(b),  this Section 7.3(b) shall not be any more  restrictive to
     Borrower than is permitted by Section 4.08 of the Indenture.

          (c) Use of Lender's  Name.  Borrower  will not,  and will use its best
     efforts not to permit any Affiliate to,  without the prior written  consent
     of Lender, use the name of Lender or the name of any affiliate of Lender in
     connection with any of their respective businesses or activities, except in
     connection with internal  business matters and as required in dealings with
     governmental agencies.

          (d) Transactions with Affiliates. Without the prior written consent of
     Lender, Borrower shall not enter into any transaction with any Affiliate in
     connection with the Collateral,  including, without limitation, relating to
     the purchase, sale or exchange any assets or properties or the rendering of
     any  service,  except  in the  ordinary  course  of,  and  pursuant  to the
     reasonable requirements of, the operations of the Resorts and upon fair and
     reasonable terms.

          (e) Restrictive  Covenants.  Borrower will not, without Lender's prior
     written consent, seek, consent to, or otherwise acquiesce in, any change in
     any private restrictive covenant, planning or zoning law or other public or
     private  restriction,  which would limit or alter the use of the Units, the
     Unsold Intervals or the Encumbered Intervals.

          (f)  Subordinated   Obligations.   Borrower  will  not,   directly  or
     indirectly:  (i)  permit  any  payment  to be  made  with  respect  to  any
     indebtedness,  liabilities or obligations, direct or contingent,  including
     without  limitation,  the  Subordinated  Indebtedness  (as  defined  in the
     Guaranty) to any of its  shareholders or their  Affiliates or the Guarantor
     which are  subordinated  by the terms thereof or by separate  instrument to
     the  payment  of  principal  of,  and  interest  on,  the  Note,  except in
     accordance with the terms of such subordination;  provided,  however,  that
     the  restrictions  of this  subsection  7.3(f)(i)  shall  not  apply to any
     payments  required  to be made by  Borrower  under the  Mirror  Notes,  and
     provided  further  that,  so long as no Default or Event of Default  exists
     with respect to the Loan and payment of any such Subordinated  Indebtedness
     does not render Borrower insolvent,  such Subordinated  Indebtedness may be
     repaid  under such  regularly  scheduled  payment  terms as are approved in
     writing  by  Lender;  (ii)  permit  the  amendment,   rescission  or  other
     modification  of any such  subordination  provisions  of any of  Borrower's
     subordinated  obligations  in such a  manner  as to  affect  adversely  the
     Lender's Lien in and to the Collateral or Lender's senior priority position
     and  entitlement  as to payment and rights with respect to the Note and the
     Obligations;  or (iii)  permit the  prepayment  or  redemption,  except for
     mandatory prepayments,  of all or any part of Borrower's obligations to its
     shareholders or their  Affiliates,  or of any  subordinated  obligations of
     Borrower  except  in  accordance  with  the  terms  of such  subordination.
     Notwithstanding   the  foregoing,   any  and  all  such  subordinations  of
     indebtedness  required  by this  Section  7.3(f)  shall be  subject  to the
     provisions of Section 4.08 of the Indenture.

          (g) Timeshare Regime. Without Lender's prior written consent, Borrower
     shall not amend, modify or terminate the Declaration or any other Timeshare
     Document,  or any other  restrictive  covenants,  agreements  or  easements

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<PAGE>

     regarding  the  Collateral;   nor  shall  Borrower  assign  its  rights  as
     "developer"  or  "declarant",  if  any,  under  the  Declaration  or  other
     Timeshare  Documents (except to the extent that such actions  constitute or
     would constitute Permitted FINOVA Liens), or file or permit to be filed any
     additional  covenants,  conditions,  easements or  restrictions  against or
     affecting  any of the  Resorts (or any portion  thereof)  without  Lender's
     prior written  consent,  except as to those changes required by the Mexican
     Consumer Protection Agency (upon prior written notice to Lender).

          (h) Name Change.  Without  Lender's  prior written  consent,  Borrower
     shall not change its name, its chief  executive  office or the locations at
     which it does business.

          (i) Collateral.  Neither  Borrower nor Guarantor shall take any action
     (or permit or consent to the taking of any action)  which might  impair the
     value of all or any  portion  of the  Collateral  or any of the  rights  of
     Lender with respect to the  Collateral,  nor shall  Borrower nor  Guarantor
     cause or permit any  amendment to or  modification  of the form or terms of
     any of the Pledged  Notes  Receivable,  Interval  Lease  Contracts or other
     Timeshare Documents.

          (j)  Marketing/Sales.  Borrower  shall not market,  attempt to sell or
     sell or permit or justify  any sales or  attempted  sales of any  Intervals
     except in compliance with all applicable  statutes,  ordinances,  rules and
     regulations  enacted or promulgated  in Mexico and any other  jurisdictions
     where marketing, sales or solicitation activities occur.

          (k)  Consolidation  and Merger.  Without the prior written  consent of
     Lender,  Borrower shall not consolidate with or merge into any other Person
     or permit any other Person to consolidate or merge into it.  Borrower shall
     not enter into any  reorganization  or reclassify any capital stock without
     Lender's prior written approval.

Section 8. EVENTS OF DEFAULT.

     8.1  Nature of  Events.  An "Event of  Default"  shall  exist if any of the
following occur:

          (a) Payments.  If Borrower fails to make, as and when due, any payment
     or mandatory  prepayment of principal,  interest,  or other fees or amounts
     with respect to the Loan.

          (b)  Covenant  Defaults.  If Borrower  fails to perform or observe any
     non-monetary covenant, agreement or warranty contained in this Agreement or
     in any of the other Loan Documents and such failure  continues for a period
     of ten (10) days  after  notice of such  failure  is  furnished  by Lender;
     provided,  however,  that if Borrower commences to cure such failure within
     such ten (10) day period but,  because of the nature of such failure,  cure
     cannot  be  completed  within  ten (10)  days,  notwithstanding  Borrower's
     diligent good faith efforts to do so, then,  provided  Borrower  diligently
     seeks to complete  such cure,  an Event of Default  shall not result unless
     such failure continues for a total of thirty (30) days after notice of such
     failure is provided by Lender.

          (c)  Warranties or  Representations.  If any  representation  or other
     statement made by or on behalf of Borrower or Guarantor in this  Agreement,
     in any of the  other  Loan  Documents  or in any  instrument  furnished  in
     compliance with or in reference to the Loan Documents, is false, misleading
     or incorrect in any material respect as of the date made or reaffirmed.

          (d)  Enforceability of Liens. If any Lien or security interest granted
     by Borrower to Lender in connection  with the Loan is or becomes invalid or
     unenforceable  or is not, or ceases to be, a perfected  first priority lien
     or security  interest  (subject to the Permitted  FINOVA Liens) in favor of
     Lender  encumbering  the asset to which it is  intended  to  encumber,  and
     Borrower  fails to cause such Lien or security  interest to become a valid,
     enforceable,  first and prior Lien or  security  interest  (subject  to the
     Permitted  FINOVA Liens) in a manner  satisfactory  to Lender,  in its sole
     discretion,  within  ten (10) days after  Lender  delivers  written  notice
     thereof to Borrower.

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<PAGE>

          (e) Involuntary  Proceedings.  If a case is commenced or a petition is
     filed  against  Borrower or Guarantor  under any Debtor Relief Law or under
     the Ley de  Quiebras  y  Suspension  de Pagos of Mexico and the same is not
     dismissed or discharged within forty-five (45) days thereafter; a receiver,
     liquidator or trustee of Borrower or Guarantor or of any material  asset of
     Borrower  or the  Guarantor  is  appointed  by court  order and such  order
     remains in effect for more than  forty-five  (45) days;  or if any material
     asset of Borrower or Guarantor is sequestered by court order and such order
     remains in effect for more than forty-five (45) days.

          (f) Proceedings.  If Borrower or Guarantor voluntarily seeks, consents
     to or  acquiesces  in the benefit of any provision of any Debtor Relief Law
     or under the Ley de Quiebras y Suspension  de Pagos of Mexico,  whether now
     or hereafter in effect;  consents to the filing of any petition  against it
     under such law;  makes an  assignment  for the  benefit  of its  creditors;
     admits in writing its  inability to pay its debts  generally as they become
     due;  or consents to or suffers  the  appointment  of a receiver,  trustee,
     liquidator or conservator for it or any part of its assets.

          (g) Attachment;  Judgment;  Tax Liens. The issuance,  filing,  levy or
     seizure  against  the  Collateral,  or,  with  respect to the  Obligations,
     against  Borrower or Guarantor,  of one or more  attachments,  injunctions,
     executions, tax liens or judgments for the payment of money cumulatively in
     excess of US$10,000 which is not discharged in full or stayed within thirty
     (30) days after issuance or filing. The issuance,  filing,  levy or seizure
     against  any  of the  Resorts  of one  or  more  attachments,  injunctions,
     executions, tax liens or judgments for the payment of money cumulatively in
     excess of US$25,000, which is not discharged in full or stayed within sixty
     (60) days after issuance or filing.

          (h) Failure to Deposit  Proceeds.  If  Borrower  shall fail to deliver
     payments made to Borrower  under the Pledged Notes  Receivable  directly to
     Lender or Lockbox Agent, as required  hereunder,  or if Borrower shall take
     any other act which  Lender  shall  deem to be a  conversion  of all or any
     portion the Collateral or fraudulent with respect to Lender.

          (i) Timeshare Documents.  If the Declaration,  the remaining Timeshare
     Documents,  any of the other  documents  creating or governing the Resorts,
     its timeshare  regime,  or any  restrictive  covenants  with respect to the
     Resorts, shall be terminated without Lender's prior written consent.

          (j) Removal of Collateral. If Borrower conceals,  removes,  transfers,
     conveys, assigns or permits to be concealed, removed, transferred, conveyed
     or assigned,  any of the Collateral in violation of the terms of any of the
     Loan Documents or with the intent to hinder, delay or defraud its creditors
     or any of them, including, without limitation, Lender.

          (k) Other  Defaults.  If a material  default occurs in connection with
     any other loans or financing arrangements which Borrower, Guarantor, or any
     of their  respective  Affiliates  may have  with  Lender  and such  default
     remains uncured beyond any applicable cure or grace period.

          (l)  Material  Adverse  Change.  Any  material  adverse  change in the
     financial  condition of  Borrower,  Guarantor,  or in the  condition of the
     Collateral.

          (m)  Default of  Guarantor.  Any  default  under the  Guaranty  or the
     revocation or attempted  revocation  or  repudiation  thereof,  in whole or
     part, by Guarantor.

          (n) Default by Borrower in Other  Agreements.  Any default by Borrower
     (i) in the payment of any  indebtedness  to Lender;  (ii) in the payment or
     performance  of other  indebtedness  for borrowed  money or  obligations in
     excess of  US$50,000  secured by all or any portion of the  Collateral;  or
     (iii) in the payment or performance of any other material  indebtedness  or
     obligations of Borrower.

          (o) Loss of License.  The suspension,  loss,  revocation or failure to
     renew or file for  renewal of any  registration,  approval  (if  required),
     license,  permit or franchise now held or hereafter acquired by Borrower or
     with respect to the Unsold  Intervals or the Encumbered  Intervals,  or the
     failure to pay any fee,  which is necessary for the continued  operation of
     the Unsold Intervals,  Encumbered  Intervals or Borrower's  business in the
     same manner as it is being conducted at the time of such loss,  revocation,
     failure to renew or failure to pay.

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<PAGE>

          (p)  Suspension  of Sales.  The issuance of any stay order,  cease and
     desist order, injunction,  temporary restraining order or other judicial or
     nonjudicial   sanction  limiting  or  materially   affecting  any  Interval
     marketing or sales  activities,  or the  enforcement of Lender's  remedies,
     which order or sanction is not  terminated or dissolved  within thirty (30)
     days after issuance.

          (q) Violation of Negative  Covenants.  Borrower or Guarantor  violates
     any negative covenant set forth in Section 7.3 hereof.

          (r) Insolvency.  Borrower or Guarantor  becomes insolvent or otherwise
     generally unable to pay its or his respective debts as and when they become
     due or payable.

          (s) Default  under FINOVA Loan or the  Indenture.  An event of default
     exists under the FINOVA Loan,  the Indenture or the Mirror Notes, a fact or
     circumstance  which,  upon  the  lapse of  time,  will  lead to an event of
     default under the FINOVA Loan,  the  Indenture or the Mirror Notes,  or the
     exercise  by  FINOVA  (or  its   successors  or  assigns)  of   foreclosure
     proceedings or any other remedy  available  under the FINOVA Loan Agreement
     with respect to the Resort Property or any other real or personal  property
     that serves as Collateral under this Agreement.

          (t)  Transfer of  Property.  Except for the sale of  Intervals  in the
     ordinary course of business in accordance with the terms hereof, and except
     for  transfers  due to  involuntary  condemnation  which do not  render the
     Resorts  useless  for its  intended  purpose  as  contemplated  hereby,  if
     Borrower shall,  without  Lender's prior written consent,  sell,  convey or
     further  encumber  all or any part of its interest in any of the Resorts or
     in any of the personalty  located thereon or used or intended to be used in
     connection  therewith (except to the extent that such transfers  constitute
     or  would  constitute   Permitted  FINOVA  Liens).  For  purposes  of  this
     paragraph, an assignment,  sale or transfer shall also include the transfer
     of any stock of Borrower other than to an existing shareholder thereof.

          (u) Lien Against Resorts.  Except as otherwise  specifically  provided
     herein to the contrary,  if Borrower  grants any  mortgages,  lien or other
     encumbrance  upon any of the  Resorts  other  than in favor  of  Lender  in
     connection with the Loan and other than the Permitted FINOVA Liens,  unless
     approved by Lender in writing, in its sole and absolute discretion.

          (v)  Encroachments  and  Permits.  Except as  described  in  Exhibit B
     hereof, if all or any portion of the Improvements  encroach upon any street
     or road, setback or easement or upon any adjoining property, or violate any
     ordinance, regulation, rule or direction of any federal or state agency, or
     of any governmental or quasi-governmental  authority, or any zoning setback
     line; or if the building  permit(s)  shall be revoked or suspended or shall
     lapse,  or if any building or other permit or license shall be  conditional
     in nature and Borrower fails to punctually  satisfy the conditions so as to
     prevent its invalidity.

          (w)  Unauthorized  Work. If Borrower,  without  Lender's prior written
     consent,  undertakes  or contracts  for work on any of the Resorts,  except
     during  an  emergency  situation  at one or more of the  Resorts  where the
     giving  of  notice  to  Lender  would   reasonably  risk  material  adverse
     consequences for any one or more of the Resorts.

          (x) Breach.  If any violation or breach shall occur in any  agreement,
     covenant or restriction affecting title to all or any portion of any of the
     Resorts, including but not limited to any Permitted Liens and Encumbrances.

          (y) Payment of Withholding Tax and Exchange Control Appraisal Fees. If
     Borrower does not pay when due any required  withholding  taxes or exchange
     control appraisal fees or payments.

Section 9. REMEDIES.

     9.1 Remedies Upon  Default.  Should an Event of Default  occur,  Lender may
take any one or more of the  actions  described  in this  Section 9, all without
notice  to  Borrower  or  Guarantor  (but  subject  to  the  provisions  of  the
Intercreditor Agreement):

          (a) Acceleration.  Without demand or notice of any nature  whatsoever,
     declare the unpaid  balance of the Loan, or any part  thereof,  immediately
     due and payable, whereupon the same shall be due and payable.

                                       55
<PAGE>

          (b) Termination of Obligation to Advance.  Terminate any commitment of
     Lender to lend under this Agreement in its entirety,  or any portion of any
     such commitment,  and/or terminate Lender's further  performance under this
     Agreement or any other  document or instrument to which Lender and Borrower
     or Guarantor  are parties,  without  further  liability  or  obligation  to
     Borrower or  Guarantor,  to the extent Lender shall deem  appropriate,  all
     without notice to Borrower or Guarantor.

          (c)  Judgment.  Reduce  Lender's  claim  to  judgment,   foreclose  or
     otherwise  enforce the Textron  Mortgages and/or any other lien or security
     interest in all or any part of the Collateral by any available  judicial or
     other  procedure  under law.  Lender's right to sue and recover a judgment,
     either  before,  after or during the  pendency  of any  proceeding  for the
     enforcement  of the  Textron  Mortgages  and the right of Lender to recover
     such  judgment  shall  not  be  affected  by  any  taking,   possession  or
     foreclosure sale hereunder or by the exercise of any other right,  power or
     remedy for the  enforcement  of the terms of the Textron  Mortgages  or the
     foreclosure of the lien thereof.

          (d)  Foreclosure.  Whether  or  not  Lender  takes  possession  of the
     Collateral,  Lender may proceed to foreclose  the Textron  Mortgages and to
     sell the  Collateral  in its entirety or in separate  increments  under the
     judgment of decree of a court or courts of  competent  jurisdiction  and to
     pursue  any  other  remedy  available  to it,  all  as  Lender  shall  deem
     appropriate.  Upon the commencement of suit or foreclosure proceedings with
     respect to the Textron Mortgages the unpaid principal balance of each Note,
     if not previously  accelerated and declared due, together with the interest
     accrued  thereon and all other  Obligations,  shall  immediately be due and
     payable. Upon any foreclosure sale pursuant to judicial proceedings, Lender
     may bid for and purchase  all or any portion of the  Collateral  and,  upon
     compliance with the terms of sale, may hold, retain and possess and dispose
     of the Collateral.

          In the  case  of a  foreclosure  sale  of all  or any  portion  of the
     Collateral  and the  application  of the proceeds of sale to the payment of
     the debt  secured by the  Textron  Mortgages,  Lender  shall be entitled to
     enforce payment of and to receive all amounts then remaining due and unpaid
     upon the Note,  and Lender  shall be entitled to recover  judgment  for any
     portion of the debt remaining unpaid, with interest.

          Borrower  agrees,  to the full extent  that it may  lawfully so agree,
     that no recovery of any such  judgment by Lender and no  attachment or levy
     of any execution upon any such judgment upon any of the Resorts or upon any
     other  property shall in any manner or to any extent affect the lien of the
     Textron  Mortgages  on the  Collateral  or any part  thereof  of any  lien,
     rights,  powers or remedies  of Lender  hereunder,  and such lien,  rights,
     powers and remedies shall continue unimpaired.

          (e) Lender's Right to Take Possession, Operate and Apply Income.

               (i) Upon Lender's demand,  Borrower shall forthwith  surrender to
          Lender  the  actual  possession  of the  Resorts  and,  to the  extent
          permitted by law,  Lender may enter and take possession of the Resorts
          and may exclude  Borrower and its  employees  and other agents  wholly
          therefrom and may have joint access with Borrower to Borrower's books,
          papers and accounts.  If Borrower fails to surrender or deliver all or
          any portion of the Resorts to Lender upon demand,  Lender may obtain a
          judgment  or decree  conferring  upon  Lender  the right to  immediate
          possession or requiring  Borrower to deliver  immediate  possession of
          all or part of the Resorts to Lender, and Borrower hereby specifically
          consents to the entry of such a judgment or decree.

               (ii) Upon  every  such  entering  upon or  taking of  possession,
          Lender may hold, store,  use, operate,  manage and control the Resorts
          and conduct Borrower's business on the Resorts and, from time to time,
          do any of the  following  things as Lender  may from time to time deem
          necessary, appropriate or desirable:

                    (A)   perform   all    maintenance,    repairs,    renewals,
               replacements,  additions and improvements necessary and proper to
               the  Resorts  and  purchase  or  otherwise   acquire   additional
               fixtures, personalty and other property;

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<PAGE>

                    (B) insure,  manage and operate the Resorts and exercise all
               of the  rights  and  powers  of  Borrower  (in  Lender's  name or
               otherwise)   with  respect  to  the  insurance,   management  and
               operation of the Resorts; and

                    (C) enter into any and all  agreements  with  respect to the
               exercise by others of any of the powers herein granted to Lender.

               (iii) Lender may collect and receive all of the income, revenues,
          rents, issues and profits of the Resorts,  including those past due as
          well as those  accruing  thereafter.  Lender  shall apply such amounts
          received by Lender  first to the payment of accrued  interest and then
          to the payment of principal  and all other sums or  indebtedness  that
          may be due hereunder, after deducting therefrom:

                    (A) All expenses of taking, holding,  managing and operating
               the  Resorts  (including  compensation  for the  services  of all
               persons employed for such purposes);

                    (B) The cost of all  such  maintenance,  repairs,  renewals,
               replacements, additions, betterments, improvements, purchases and
               acquisitions;

                    (C) The cost of insurance;

                    (D) Such taxes,  assessments  and other charges prior to the
               lien of the Textron Mortgages as Lender may determine to pay;

                    (E)  Other  proper  charges  upon  the  Resorts  or any part
               thereof; and

                    (F) The reasonable compensation,  expenses and disbursements
               of the attorneys and other agents of Lender, including attorneys'
               fees and court costs.

               (iv)  If an  Event  of  Default  giving  rise to  pursuit  of the
          foregoing  remedy  shall have been  cured,  Lender may, at its option,
          surrender  possession  of the Resorts to Borrower,  its  successors or
          assigns; provided, however, that Lender's right to take possession and
          to pursue any other remedies  hereunder or under any of the other Loan
          Documents shall exist if any subsequent Event of Default shall occur.

          (f) Sale of Collateral.  After  notification,  if any, provided for in
     Section 9.2 below,  Lender may direct the Land Trustee to sell or otherwise
     dispose of, at the office of the Land Trustee,  or elsewhere,  as chosen by
     Lender,  all or any  part of the  Collateral,  and any  such  sale or other
     disposition  may  be  as a  unit  or  in  parcels,  by  public  or  private
     proceedings,  and by way of one or more contracts (it being agreed that the
     sale of any part of the  Collateral  shall not  exhaust  Lender's  power of
     sale,  but sales may be made from time to time until all of the  Collateral
     has been  sold or until  the  Obligations  have been paid in full and fully
     performed),  and at any such sale it shall not be  necessary to exhibit the
     Collateral.  Borrower and the Guarantor hereby acknowledge and agree that a
     private sale or sales of the Collateral, after notification as provided for
     in Section 9.2, shall constitute a commercially  reasonable  disposition of
     the Collateral sold at any such sale or sales, and otherwise,  commercially
     reasonable action on the part of the Lender.

          (g) Retention of Collateral. At its discretion, retain such portion of
     the Collateral as shall  aggregate in value to an amount equal to the total
     amount owed by the Borrower pursuant to the Loan Documents, in satisfaction
     of the  Obligations,  whenever  the  circumstances  are such that Lender is
     entitled and elects to do so under applicable law.

          (h) Receiver.  Apply by appropriate procedures to the Land Trustee for
     the  appointment  of a receiver who shall have the  authority to enter upon
     and take possession of the Resorts, collect the rents and profits therefrom
     and apply the same as the court may direct. Borrower hereby consents to any
     such  appointment.  The  receiver  shall  have all of the rights and powers
     permitted  under the laws of  Mexico.  All costs  and  expenses  (including
     receiver's fees,  attorneys' fees and costs, and other amounts) incurred in
     connection  with the  appointment  of a  receiver  shall be  secured by the
     Textron Mortgages.

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<PAGE>

          (i) Purchase of  Collateral.  Buy all or any part of the Collateral at
     any public or private sale.

          (j)  Exercise of Other  Rights.  Lender  shall have all the rights and
     remedies of a secured  party  under the Code and other legal and  equitable
     rights to which it may be  entitled,  including,  without  limitation,  and
     without  notice to Borrower,  the right to continue to collect all payments
     made on the Pledged  Notes  Receivable,  and to apply such  payments to the
     Obligations,  and to sue in its own name the maker of any defaulted Pledged
     Notes  Receivable.  Lender may also  exercise  any and all other  rights or
     remedies  afforded by any other applicable laws or by the Loan Documents as
     Lender shall deem appropriate,  at law, in equity or otherwise,  including,
     but not limited to, the right to bring suit or other proceeding, either for
     specific  performance  of any covenant or  condition  contained in the Loan
     Documents  or in aid of the  exercise  of any  right or remedy  granted  to
     Lender in the Loan  Documents.  Lender shall also have the right to require
     the Borrower to assemble any of the Collateral not in Lender's  possession,
     at  Borrower's  expense,  and make it  available to Lender at a place to be
     determined  by Lender which is reasonably  convenient to both parties,  and
     Lender  shall  have the right to take  immediate  possession  of all of the
     Collateral, and may enter the Resorts or any of the premises of Borrower or
     wherever the Collateral  shall be located,  with or without  process of law
     wherever the  Collateral  may be, and, to the extent such  premises are not
     the property of Lender,  to keep and store the same on said premises  until
     sold (and if said premises be the property of Borrower, Borrower agrees not
     to charge Lender for use and occupancy, rent, or storage of the Collateral,
     for a period of at least ninety (90) days after sale or  disposition of the
     Collateral).

          (k) Escrow  Account.  Require that an escrow account be established by
     Lender or an escrow agent acceptable to Lender to collect any and all taxes
     that may be payable by Borrower.

     9.2 Notice of Sale.  Reasonable  notification  of the time and place of any
public sale of the Collateral or reasonable notification of the time after which
any private sale or other  intended  disposition of the Collateral is to be made
shall be sent to Borrower and to any other  Person  entitled to notice under the
Code  or  other  applicable  law;  provided,  however,  that  if the  Collateral
threatens  to decline  speedily in value or is of a type  customarily  sold on a
recognized  market,  Lender may,  subject to any applicable  local laws, sell or
otherwise dispose of the Collateral without notification, advertisement or other
notice  of any  kind.  It is  agreed  that  notice  sent not less  than ten (10)
calendar days prior to the taking of the action to which such notice  relates is
reasonable  notification and notice for the purposes of this Section 9.2. Lender
shall have the right to bid at any public or private sale on its own behalf. Out
of money arising from any such sale,  Lender shall retain an amount equal to all
costs and charges, including attorneys' fees, for advice, counsel or other legal
services  or for  pursuing,  reclaiming,  seeking to reclaim,  taking,  keeping,
removing, storing and advertising such Collateral for sale, selling same and any
and all other charges and expenses in connection therewith and in satisfying any
prior Liens thereon.  Any balance shall be applied upon the Obligations,  and in
the event of deficiency, Borrower shall remain liable to Lender. In the event of
any surplus,  such surplus shall be paid to Borrower or to such other Persons as
may be legally entitled to such surplus. If, by reason of any suit or proceeding
of any kind, nature or description against Borrower, or by Borrower or any other
party against Lender,  which in Lender's sole discretion  makes it advisable for
Lender to seek  counsel for the  protection  and  preservation  of its  security
interest, or to defend its own interest, such expenses and counsel fees shall be
allowed to Lender and the same shall be made a further  charge and Lien upon the
Collateral.

     In view of the fact that  federal  and  state  securities  laws may  impose
certain  restrictions on the methods by which a sale of Collateral  comprised of
Securities may be effected after an Event of Default,  Borrower agrees that upon
the  occurrence  or existence of an Event of Default,  Lender may,  from time to
time,  attempt to sell all or any part of such  Collateral by means of a private
placement restricting the bidding and prospective  purchasers who will represent
and agree that they are purchasing  for  investment  only and not for, or with a
view to,  distribution.  In so  doing,  Lender  may  solicit  offers to buy such
Collateral,  or any part of it for  cash,  from a limited  number  of  investors
deemed by Lender,  in its reasonable  judgment,  to be  responsible  parties who
might be interested in purchasing the  Collateral,  and if Lender  solicits such
offers  from not less than  three (3) such  investors,  then the  acceptance  by
Lender  of  the  highest  offer  obtained  therefrom  shall  be  deemed  to be a
commercially reasonable method of disposition of such Collateral.

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<PAGE>

     9.3  Application  of  Collateral;   Termination  of  Agreements.  Upon  the
occurrence of any Event of Default,  Lender may, with or without proceeding with
such sale or foreclosure or demanding payment or performance of the Obligations,
without notice,  terminate Lender's further  performance under this Agreement or
any other  agreement or agreements  between Lender and Borrower or any Affiliate
of Borrower, without further liability or obligation by Lender, and may also, at
any time, appropriate and apply on any Obligations any and all Collateral in its
(or the Lockbox Agent's) possession,  any and all balances,  credits,  deposits,
accounts,  reserves,  indebtedness or other moneys due or owing to Borrower held
by Lender hereunder or under any other financing agreement or otherwise, whether
accrued or not. Neither such termination,  nor the termination of this Agreement
by lapse of time, the giving of notice or otherwise,  shall absolve,  release or
otherwise affect the liability of Borrower with respect to transactions prior to
such termination, or affect any of the Liens, security interests, rights, powers
and remedies of Lender, but they shall, in all events, continue until all of the
Obligations are satisfied.

     9.4 Rights of Lender Regarding Collateral.  In addition to all other rights
possessed by Lender,  Lender,  at its option,  may from time to time after there
shall have  occurred an Event of  Default,  and so long as such Event of Default
remains uncured,  at its sole discretion and subject to applicable law, take the
following actions:

          (a) Transfer all or any part of the Collateral into the name of Lender
     or its nominee;

          (b) Take control of any proceeds of any of the Collateral;

          (c)  Extend  or renew  the Loan and  grant  releases,  compromises  or
     indulgences  with  respect to the  Obligations,  any portion  thereof,  any
     extension  or renewal  thereof,  or any security  therefor,  to any obligor
     hereunder or thereunder; and

          (d) Exchange  certificates  or instruments  representing or evidencing
     the  Collateral  for  certificates  or  instruments  of  smaller  or larger
     denominations for any purpose consistent with the terms of this Agreement.

     9.5  Delegation of Duties and Rights.  Lender may execute any of its duties
and/or  exercise  any of its rights or remedies  under the Loan  Documents by or
through  its  officers,  directors,   employees,   attorneys,  agents  or  other
representatives.

     9.6  Lender  Not in  Control.  None of the  covenants  or other  provisions
contained in this  Agreement or in any other Loan Document shall give Lender the
right  or power to  exercise  control  over the  affairs  and/or  management  of
Borrower.

     9.7 Waivers.  The acceptance by Lender at any time and from time to time of
partial  payments of the Loan or  performance  of the  Obligations  shall not be
deemed to be a waiver of any Event of Default then existing. No waiver by Lender
of any  Event  of  Default  shall  be  deemed  to be a  waiver  of any  other or
subsequent  Event of Default.  No delay or omission by Lender in exercising  any
right or remedy under the Loan Documents shall impair such right or remedy or be
construed as a waiver thereof or an acquiescence  therein,  nor shall any single
or  partial  exercise  of any such  right or remedy  preclude  other or  further
exercises  thereof,  or the exercise of any other right or remedy under the Loan
Documents or otherwise.  Further, except as otherwise expressly provided in this
Agreement or by applicable  law,  Borrower and each and every surety,  endorser,
guarantor  and other party liable for the payment or  performance  of all or any
portion of the  Obligations,  severally  waive notice of the  occurrence  of any
Event of Default,  presentment  and demand for payment,  protest,  and notice of
protest,  notice of intention to accelerate,  acceleration  and nonpayment,  and
agree that their  liability shall not be affected by any renewal or extension in
the time of payment of the Loan, or by any release or change in any security for
the  payment  or  performance  of the  Loan,  regardless  of the  number of such
renewals, extensions, releases or changes.

     9.8 Cumulative  Rights.  All rights and remedies  available to Lender under
the Loan  Documents  shall be  cumulative of and in addition to all other rights
and  remedies  granted to Lender under any of the Loan  Documents,  at law or in
equity,  whether or not the Loan is due and  payable  and  whether or not Lender
shall have instituted any suit for collection or other action in connection with
the Loan Documents.

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<PAGE>

     9.9 Expenditures by Lender. Any sums reasonably expended by or on behalf of
Lender  pursuant to the  exercise of any right or remedy  provided  herein shall
become part of the Obligations and shall bear interest at the Default Rate, from
the date of such expenditure until the date repaid.

     9.10 Diminution in Value of Collateral. Lender shall not have any liability
or  responsibility  whatsoever for any diminution or loss in value of any of the
Collateral, specifically including that which may arise from Lender's negligence
or  inadvertence,  whether  such  negligence  or  inadvertence  is the  sole  or
concurring  cause of any damage,  but  specifically  excluding any diminution or
loss in value which is actually and  proximately  caused by Lender's  failure to
retain the  Pledged  Notes  Receivable  in a  fire-resistant  filing  cabinet as
provided in Section 3.6 above.

Section 10. CERTAIN RIGHTS OF LENDER

     10.1  Protection  of  Collateral.  Lender may, at any time and from time to
time,  take such actions as Lender deems  necessary  or  appropriate  to protect
Lender's Liens and security interests in and to preserve the Collateral,  and to
establish,  maintain  and protect  the  enforceability  of Lender's  rights with
respect  thereto,  all at the expense of Borrower.  Borrower agrees to cooperate
fully with all of  Lender's  efforts to preserve  the  Collateral  and  Lender's
Liens,  security interests and rights and will take such actions to preserve the
Collateral  and  Lender's  Liens,  security  interests  and rights as Lender may
direct,  including,  without limitation, by promptly paying upon Lender's demand
therefor, all documentary stamp taxes,  withholding taxes, exchange fees, notary
fees,  registration  fees or other  taxes or fees that may be or may  become due
with respect to any of the  Collateral.  All of Lender's  expenses of preserving
the Collateral and its Liens and security  interests and rights therein shall be
added to the principal amount of the Loan and secured by the Collateral.

     10.2  Performance  by Lender.  If Borrower  fails to perform any  agreement
contained herein,  Lender may itself perform,  or cause the performance of, such
agreement,  and the expenses of Lender incurred in connection therewith shall be
payable by Borrower under Section 10.5 below. In no event, however, shall Lender
have any  obligation or duty  whatsoever to perform any covenant or agreement of
Borrower  contained  herein or in any of the  other  Loan  Documents,  Timeshare
Documents or Operating  Contracts,  and any such  performance by Lender shall be
wholly  discretionary with Lender. The performance by Lender of any agreement or
covenant of Borrower on any occasion shall not give rise to any duty on the part
of Lender to perform any such  agreements or covenants on any other  occasion or
at any time.  In addition,  Borrower  acknowledges  that Lender shall not at any
time or under any  circumstances  whatsoever have any duty to Borrower or to any
third party to exercise any of Lender's rights or remedies hereunder.

     10.3 No Liability of Lender.  Neither the  acceptance of this  Agreement by
Lender,  nor the exercise of any rights hereunder by Lender,  shall be construed
in any way as an assumption by Lender of any  obligations,  responsibilities  or
duties of Borrower arising in connection with the Resorts or under the Timeshare
Documents, any applicable statutes,  ordinances, rules or regulations, under any
of the Operating Contracts, or in connection with any other business of Borrower
or  the  Collateral,  or  otherwise  bind  Lender  to  the  performance  of  any
obligations  with respect to the Resorts or the  Collateral;  it being expressly
understood  that Lender shall not be obligated to perform,  observe or discharge
any obligation,  responsibility,  duty, or liability of Borrower with respect to
the Resorts or any of the Collateral,  or under any of the Timeshare  Documents,
any applicable statutes,  ordinances,  rules or regulations, or under any of the
Operating  Contracts,  including,  but not limited to, appearing in or defending
any  action,  expending  any  money  or  incurring  any  expense  in  connection
therewith.  Without  limitation of the foregoing,  neither this  Agreement,  any
action or actions on the part of Lender taken hereunder,  nor the acquisition of
the Pledged Notes  Receivable and the related Interval Lease Contracts by Lender
prior to or following the occurrence of an Event of Default shall  constitute an
assumption by Lender of any  Obligations of Borrower with respect to the Resorts
or the Pledged Notes  Receivable,  the related  Interval Lease  Contracts or any
documents or instruments  executed in connection  therewith,  and Borrower shall
continue  to be liable for all of its  obligations  thereunder  or with  respect
thereto.  Borrower  and  Guarantor,  jointly  and  severally,  hereby  agree  to
indemnify, protect, defend and hold Lender harmless from and against any and all
claims, demands, causes of action, losses,  damages,  liabilities,  suits, costs
and expenses,  including,  without limitation,  attorneys' fees and court costs,
asserted  against  or  incurred  by  Lender  by reason  of,  arising  out of, or
connected  in any way with (i) any  failure or alleged  failure of  Borrower  to

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perform any of its  covenants or  obligations  with respect to the Resorts or to
the  Purchasers  of any of the  Intervals;  (ii) a breach of any  certification,
representation,  warranty or  covenant of Borrower  set forth in any of the Loan
Documents;  (iii) the  ownership of the Pledged Notes  Receivable,  the Interval
Lease  Contracts  and the  rights,  titles and  interests  assigned  hereby,  or
intended so to be; (iv) the  debtor-creditor  relationships  between Borrower on
the one hand, and the Purchasers or Lender, as the case may be, on the other; or
(v) the Pledged Notes Receivable,  the Interval Lease Contracts or the operation
of the Resorts.  The obligations of Borrower to indemnify,  protect,  defend and
hold Lender harmless as provided in this Agreement are absolute,  unconditional,
present  and  continuing,  and shall not be  dependent  upon or  affected by the
genuineness, validity, regularity or enforceability of any claim, demand or suit
from which Lender is indemnified.  The indemnity provisions in this Section 10.3
shall  survive the  satisfaction  of the  Obligations  and  termination  of this
Agreement,  and remain binding and enforceable  against Borrower,  together with
its successors and assigns.  Borrower  hereby waives all notices with respect to
any losses,  damages,  liabilities,  suits,  costs and  expenses,  and all other
demands  whatsoever  hereby  indemnified,  and agrees that its obligations under
this  Agreement  shall not be  affected  by any  circumstances,  whether  or not
referred  to  above,  which  might  otherwise   constitute  legal  or  equitable
discharges of its obligations  hereunder.  If a court of competent  jurisdiction
should  determine  that Borrower is entitled to recover  damages from Lender for
any reason or upon any cause, claim or counterclaim, in connection with the Loan
or the transactions  provided for or contemplated  pursuant to this Agreement or
the other Loan Documents,  Borrower  stipulates and agrees that any such damages
or awards shall be limited to the amount of the  Commitment  Fees or any portion
thereof actually paid by Borrower to Lender.

     10.4 Right to Defend Action Affecting  Security.  Lender may, at Borrower's
expense,  appear in and defend any  action or  proceeding,  at law or in equity,
which Lender in good faith  believes may affect the Liens or security  interests
granted under this  Agreement,  including  without  limitation,  with respect to
Pledged Notes Receivable, the Textron Mortgages, the value of the Collateral, or
Lender's rights under any of the Loan Documents.

     10.5 Expenses. All expenses payable by Borrower under any provision of this
Agreement  shall be an Obligation of Borrower,  and if paid by Lender,  shall be
repaid by  Borrower  to Lender,  upon  demand,  and shall bear  interest  at the
Default Rate from the date of payment of such  expense(s) by Lender until repaid
by Borrower.

     10.6  Lender's  Right of  Set-Off.  Lender  shall have the right to set-off
against  any or all of the  Collateral  any  Obligations  then due and unpaid by
Borrower.

     10.7 No Waiver. No failure or delay on the part of Lender in exercising any
right,  remedy or power  under this  Agreement  or in giving or  insisting  upon
strict  performance by Borrower  hereunder or in giving notice  hereunder  shall
operate  as a waiver of the same or any other  power or right,  and no single or
partial  exercise of any such power or right shall preclude any other or further
exercise  thereof or the  exercise  of any other  such  power or right.  Lender,
notwithstanding any such failure, shall have the right thereafter to insist upon
the strict performance by Borrower of any and all of the terms and provisions of
this Agreement to be performed by Borrower.  The  collection and  application of
proceeds, the entering and taking possession of the Collateral, and the exercise
of the rights of Lender contained in this Agreement and the other Loan Documents
shall not cure or waive any Default,  or affect any Default or affect any notice
of Default,  or invalidate  any acts done pursuant to such notice.  No waiver by
Lender of any breach or Default of or by any party  hereunder shall be deemed to
alter  or  affect  Lender's  rights  hereunder  with  respect  to any  prior  or
subsequent Default.

     10.8  Right of  Lender  to  Extend  Time of  Payment,  Substitute,  Release
Security,  Etc.  Without  affecting  the  liability  of any  Person  or  entity,
including,  without  limitation,  any Purchasers,  for the payment of any of the
Obligations and without affecting or impairing  Lender's Lien on the Collateral,
or the remainder thereof, as security for the full amount of the Loan unpaid and
the Obligations,  Lender may from time to time,  without notice: (a) release any
Person  liable  for the  payment of the Loan;  (b) extend the time or  otherwise
alter the terms of payment of the Loan; (c) accept  additional  security for the
Obligations  of any kind,  including  deeds of trust or  mortgages  and security
agreements;   (d)  alter,  substitute  or  release  any  property  securing  the
Obligations;  (e)  realize  upon any  Collateral  for the  payment of all or any
portion of the Loan in such order and manner as it may deem fit;  or (f) join in
any  subordination  or other  agreement  affecting this Agreement or the lien or
charge thereof.

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<PAGE>

     10.9 Assignment of Lender's Interest. Lender shall have the right to assign
the Loan and all or any portion of its rights in or  pursuant to this  Agreement
or any of the Loan Documents to any subsequent  holder or holders of the Note or
the Obligations.

     10.10 Notice to Purchaser.  Borrower  authorizes any of Lender, the Lockbox
Agent or  Servicing  Agent  (but  neither  Lender,  the  Lockbox  Agent  nor the
Servicing  Agent shall be obligated) to communicate at any time and from time to
time with any  Purchaser or any other Person  primarily  or  secondarily  liable
under a Pledged Note  Receivable  with regard to the Lien of the Lender  thereon
and any other matter  relating  thereto,  and by no later than the Closing Date,
Borrower  shall deliver to Lender a notification  to the Purchasers  executed in
blank by  Borrower  and in form  acceptable  to  Lender,  pursuant  to which the
Purchasers  (or other  obligors)  may be  directed  to remit all  payments  with
respect to the Collateral as Lender may require.

     10.11 Collection of the Notes.  Borrower hereby directs and authorizes each
Person liable for the payment of any Pledged Note Receivable, and promptly after
the Closing Date, itself shall direct, in writing, each such Person, to pay each
installment  thereon to the Lockbox  Agent,  pursuant to the Lockbox  Agreement,
unless  and until  directed  otherwise  by  written  notice  from  Lender or, at
Lender's  direction,  from  Borrower,  after which such parties are and shall be
directed  to make all  further  payments  on the  Pledged  Notes  Receivable  in
accordance with the directions of Lender.  Borrower shall have no rights to such
installment  payments.  Lockbox Agent shall have no right of setoff with respect
to the monies held by Lockbox Agent pursuant to the Lockbox Agreement.  Borrower
shall be responsible for all costs and expenses related to the Lockbox Agreement
and the Lockbox Agent.  Following the occurrence of an Event of Default,  Lender
shall have the right to require that all payments becoming due under the Pledged
Notes  Receivable  (if any) be paid  directly  to  Lender,  and Lender is hereby
authorized to receive,  collect,  hold and apply the same in accordance with the
provisions of this  Agreement.  In the event that following the occurrence of an
Event of Default,  Lender or Lockbox Agent does not receive any  installment  of
principal or interest due and payable under any of the Pledged Notes  Receivable
on or prior to the date upon which such installment  becomes due, Lender may, at
its election (but without any  obligation to do so), give or cause Lockbox Agent
to give notice of such event of default to the defaulting party or parties,  and
Lender  shall have the right (but not the  obligation),  subject to the terms of
such Notes,  to accelerate  payment of the unpaid  balance of any of the Pledged
Notes Receivable in default,  and to enforce any other remedies available to the
holder of such Pledged Notes  Receivable  with respect to such Event of Default.
Borrower  hereby further  authorizes,  directs and empowers  Lender (and Lockbox
Agent or any other Person as may be  designated by Lender in writing) to collect
and receive all checks and drafts  evidencing  such payments and to endorse such
checks or drafts in the name of Borrower and upon such endorsements,  to collect
and receive the money  therefor.  The right to endorse checks and drafts granted
pursuant to the preceding sentence is irrevocable by Borrower,  and the banks or
banks  paying  such  checks or drafts  upon  such  endorsements,  as well as the
signers of the same,  shall be as fully protected as though the checks or drafts
had been endorsed by Borrower.

     10.12 Power of Attorney.  Borrower does hereby  irrevocably  constitute and
appoint Lender as Borrower's  true and lawful agent and  attorney-in-fact,  with
full power of  substitution,  for Borrower  and in  Borrower's  name,  place and
stead, or otherwise,  to (a) endorse any checks or drafts payable to Borrower in
the name of Borrower and in favor of Lender as provided in Section  10.11 above;
(b) to  demand  and  receive  from  time to time any and all  property,  rights,
titles,  interests and liens hereby sold, assigned and transferred,  or intended
so to be,  and to give  receipts  for  same;  (c) upon an Event of  Default,  to
collect  all rent,  revenues  and  income,  pursuant to the terms of the Textron
Mortgages, subject however to the provisions of the Intercreditor Agreement; (d)
from time to time, to institute and prosecute, in Lender's own name, any and all
proceedings  at law,  in equity,  or  otherwise,  that Lender may deem proper in
order to collect,  assert or enforce any claim,  right or title, of any kind, in
and to the property,  rights, titles,  interests and liens hereby sold, assigned
or  transferred,  or intended so to be, and to defend and compromise any and all
actions, suits or proceedings with respect to any of the said property,  rights,
titles, interests and liens; (e) with respect to Pledged Notes Receivable,  upon
an Event of Default,  to change the Borrower's post office mailing address;  and
(f)  generally  to do all and any  such  acts  and  things  in  relation  to the
Collateral  as  Lender  shall in good  faith  deem  advisable.  Borrower  hereby
declares  that the  appointment  made and the powers  granted  pursuant  to this
Section 10.12 are coupled with an interest and are and shall be  irrevocable  by
Borrower  in any manner,  or for any  reason,  unless and until a release of the

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same is executed by Lender and, to the extent  permissible  under  Mexican  law,
duly recorded in the  appropriate  public records of the location of each of the
Resorts.  For purposes of effectuating  Borrower's grant of an irrevocable power
of attorney to Lender,  contemporaneous  herewith  Borrower  has  executed  that
certain  power of attorney  in favor of Lender  which has been or which shall be
recorded in the Public Registry of Commerce ("Power of Attorney").

     10.13 Relief from Automatic Stay,  Etc. To the fullest extent  permitted by
law, in the event the Borrower or Guarantor  shall make  application for or seek
relief  or  protection   under  the  United  States  federal   bankruptcy   code
("Bankruptcy  Code") or other United States or Mexican Debtor Relief Laws, or in
the event  that any  involuntary  petition  is filed  against  the  Borrower  or
Guarantor  under such Code or other Debtor Relief Laws,  and not dismissed  with
prejudice within  forty-five (45) days, the automatic stay provisions of Section
362 of the  Bankruptcy  Code are  hereby  modified  as to Lender  to the  extent
necessary to implement the provisions hereof  permitting  set-off and the filing
of financing  statements or other  instruments  or  documents;  and Lender shall
automatically  and without  demand or notice (each of which is hereby waived) be
entitled to immediate  relief from any automatic  stay imposed by Section 362 of
the Bankruptcy  Code or otherwise,  on or against the exercise of the rights and
remedies  otherwise  available to Lender as provided in the Loan  Documents.  In
addition,  in the  event  relief is sought  by or  against  Guarantor  under the
Bankruptcy Code, such Guarantor agrees not to seek,  directly or indirectly,  in
any ensuing  bankruptcy  proceeding,  any  extension of the  exclusivity  period
otherwise  available to a debtor under the Bankruptcy Code,  including,  without
limitation,  the  exclusivity  period  provided for under Section 1121(b) of the
Bankruptcy Code.  Guarantor agrees not to contest the validity or enforceability
of this Section.

     10.14  Investigations  and Inquiries.  Borrower hereby authorizes Lender to
conduct  such  investigations  and  inquiries  as  to  credit,  operations,  the
Guarantor,  the  Resorts  and  the  Collateral  as  Lender  shall,  in its  sole
discretion,  deem necessary or desirable in connection with monitoring the Loan,
and all such  Persons of whom  Lender may make such  inquiry  are  empowered  to
cooperate with, and to provide requested information to, Lender.

     10.15  Right of First  Refusal.  Subject to the right of first  refusal set
forth in the FINOVA Loan Agreement,  Lender shall have the  unconditional  right
and option (but not the obligation),  in its sole discretion, and right of first
refusal  to  commit to  provide  and  subsequently  provide  any and all  future
receivables  financing to Borrower or any  Affiliate  of Borrower in  connection
with said  Person's sale of one (1) or more future phases of Units and Intervals
or other timeshare  interests of any type at the Resorts,  on substantially  the
same terms as those set forth herein.

     10.17  Withholding  Tax. Any and all payments by the Borrower  hereunder or
under the Note shall be made free and clear of and without deduction for any and
all  present  or  future  taxes,  levies,   imposts,   deductions,   charges  or
withholdings, and all liabilities with respect thereto. If the Borrower shall be
required  by law to deduct  any taxes from or with  respect  to any sum  payable
hereunder  or under the Note (i) the sum payable  shall be increased or "grossed
up" as may be necessary so that after making all required  deductions the Lender
receives  an  amount  equal  to the  sum it  would  have  received  had no  such
deductions  been made,  (ii) the Borrower  shall pay the full amount of any sums
deducted to the relevant taxing  authority or other authority in accordance with
applicable  law.  Lender and Borrower  shall enter into an  arrangement  whereby
Borrower  will  provide to Lender  evidence  satisfactory  to Lender in its sole
discretion of the payment of withholding  taxes required pursuant to Article 154
of the Mexican  Income Tax Law and the Treaty to Avoid Double  Taxation  between
the  United  States  and  Mexico  dated as of  November  8,  1992 (or  successor
provisions, as applicable). If permissible under applicable laws, Borrower shall
allow  Lender to take tax  credits for such  withholding  tax  payments  made by
Borrower  and,  after  Lender's  receipt of evidence  satisfactory  to Lender in
Lender's sole discretion of Borrower's payment of such withholding tax payments,
Lender will remit to Borrower an amount  equal to such tax credits to the extent
actually  enjoyed by Lender,  taking into account,  at Lender's sole discretion,
tax credit or other limitations,  but in no event greater than the amount of the
withholding tax payments actually paid by Borrower with respect to the Note.

     10.18  Intercreditor  Agreement.   Borrower,   Guarantor  and  Lender  each
acknowledge and confirm that the provisions of this Loan Agreement,  the Textron
Mortgages, and the remaining Loan Documents shall be subject to the terms of the
Intercreditor Agreement.

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Section 11. TERM OF AGREEMENT.  This Agreement  shall continue in full force and
effect, and the security interests granted hereby and the duties,  covenants and
liabilities of Borrower  hereunder and all the terms,  conditions and provisions
hereof  relating  thereto shall continue to be fully  operative until all of the
Obligations  have been  satisfied  in full.  Borrower  expressly  agrees that if
either  Borrower or Guarantor  makes a payment to Lender,  which  payment or any
part  thereof  is  subsequently  invalidated,   declared  to  be  fraudulent  or
preferential,  or otherwise required to be repaid to a trustee,  receiver or any
other party under any Debtor  Relief Laws,  state or federal law,  common law or
equitable  cause,  then to the extent of such repayment,  the Obligations or any
part thereof  intended to be  satisfied  and the Liens  provided  for  hereunder
securing the same shall be revived and  continued in full force and effect as if
said payment had not been made.

Section 12. MISCELLANEOUS

     12.1  Notices.  All notices,  requests and other  communications  to either
party  hereunder  shall be in  writing  and shall be given to such  party at its
address  set forth  below or at such other  address as such party may  hereafter
specify  for the  purpose  of notice to Lender or  Borrower.  Each such  notice,
request or other  communication  shall be effective  (a) if given by mail,  when
such notice is deposited  in the United  States or Mexican mail with first class
postage  prepaid,  and addressed as aforesaid,  provided that such mailing is by
registered  or  certified  mail,  return  receipt  requested;  (b) if  given  by
overnight  delivery,  two (2)  days  following  the date  that  such  notice  is
deposited with an internationally  recognized overnight delivery service such as
Federal  Express or Airborne,  with all fees and charges  prepaid,  addressed as
provided  below;  or (c) if given by any  other  means,  when  delivered  at the
address specified in this Section 12.1:

          If  to  Borrower:        c/o  Raintree  Resorts  International,  Inc.
                                   10000 Memorial Drive, Suite 480
                                   Houston, Texas 77024
                                   Attn: Douglas Y. Bech, Esq.

          And a Copy (which
          copy shall not
          constitute notice) to:   Richard F. Davis, Esq.
                                   Battle Fowler, LLP
                                   Suite 2350
                                   2049 Century Park East
                                   Los Angeles, California 90067

          If to Lender:           Textron Financial Corporation
                                  40 Westminster Street
                                  Providence, Rhode Island 02940
                                  Attention: Legal

          With a Copy to:         Textron Financial Corporation
                                  333 East River Drive
                                  First Floor #104
                                  East Hartford, Connecticut 06108
                                  Attention:        Vice President

          If to Guarantor:        c/o Raintree Resorts International, Inc.
                                  10000 Memorial Drive, Suite 480
                                  Houston, Texas 77024
                                  Attn: Douglas Y. Bech, Esq.

          And  a Copy
          which copy shall
          not constitute
          notice) to:             Richard F. Davis, Esq.
                                  Battle Fowler, LLP
                                  Suite 2350
                                  2049 Century Park East
                                  Los Angeles, California 90067

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<PAGE>

          Notwithstanding the foregoing,  copies of the requests or notices from
     Borrower to Lender which are specified in Sections 2.4(a), 4.2(a) and 12.10
     of this  Agreement  shall not be delivered to  Providence,  Rhode Island as
     provided  above,  but rather  shall be delivered  in  accordance  with this
     Section 12.1 only to Textron Financial  Corporation,  333 East River Drive,
     Suite 305, East Hartford, Connecticut 06108, Attention: Richard Mitterling.
     In addition, all documents,  instruments and other items to be delivered to
     Lender from time to time pursuant to this  Agreement  shall be delivered to
     Lender's  office  at 333  East  River  Drive,  Suite  305,  East  Hartford,
     Connecticut 06108.

     12.2 Survival.  All representations,  warranties,  covenants and agreements
made by Borrower herein,  in the other Loan Documents or in any other agreement,
document,  instrument or certificate delivered by or on behalf of Borrower under
or pursuant to the Loan  Documents  shall be considered to have been relied upon
by Lender and shall survive the delivery to Lender of such Loan  Documents  (and
each part  thereof),  regardless  of any  investigation  made by or on behalf of
Lender.

     12.3 Governing Law. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS  (EXCEPT AS
MAY BE  EXPRESSLY  PROVIDED  THEREIN TO THE  CONTRARY)  SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF RHODE ISLAND, EXCLUSIVE OF
ITS CHOICE OF LAWS PRINCIPLES. BORROWER AND THE GUARANTOR HEREBY AGREE TO ACCEPT
THE FEDERAL AND STATE  COURTS  LOCATED IN  PROVIDENCE  COUNTY,  RHODE  ISLAND AS
HAVING PROPER  JURISDICTION AND BEING THE PROPER VENUE FOR ANY LEGAL PROCEEDINGS
ARISING OUT OF THE LOAN DOCUMENTS AND EACH PARTY HERETO HEREBY EXPRESSLY SUBMITS
TO THE JURISDICTION OF SUCH COURTS FOR THE PURPOSE OF ANY SUCH LEGAL PROCEEDINGS
AND EXPRESSLY  WAIVES FOR SUCH PURPOSE ANY OTHER  PREFERENTIAL  JURISDICTION  BY
REASON OF ITS PRESENT OR FUTURE DOMICILE OR OTHERWISE.  NOTWITHSTANDING ANYTHING
TO THE CONTRARY PROVIDED HEREIN,  BORROWER AND GUARANTOR EXPRESSLY WAIVE ANY AND
ALL CLAIMS TO JURISDICTION IN MEXICO.  NOTWITHSTANDING  ANYTHING TO THE CONTRARY
PROVIDED  HEREIN,  THERE SHALL BE NO  PROHIBITION  BY LAW, RULE OR REGULATION OF
MEXICO OR ANY  POLITICAL  SUBDIVISION  THEREOF AS TO THE LENDER'S  PROVIDING THE
LOAN TO BORROWER AND LENDER'S  COLLECTION  OF PAYMENTS OF PRINCIPAL AND INTEREST
PURSUANT TO THE LOAN  TOGETHER  WITH  LENDER'S  COLLECTION  OF ANY AND ALL COSTS
RELATING TO THE LOAN OR EXERCISE OF RIGHTS AS TO THE COLLATERAL.  ALL COLLATERAL
WILL BE  PERFECTED  IN  ACCORDANCE  WITH THE LAWS OF MEXICO,  THE STATE OF RHODE
ISLAND, AND THE LOCATION OF THE COMPANY PROVIDING SERVICES AND MANAGEMENT TO THE
RESORTS.

     12.4  Limitation on Interest.  Lender and Borrower  intend to comply at all
times  with all  applicable  usury  laws.  All  agreements  between  Lender  and
Borrower, whether now existing or hereafter arising and whether written or oral,
are  hereby  limited so that in no  contingency,  whether by reason of demand or
acceleration  of the  maturity  of the Note or  otherwise,  shall  the  interest
contracted for,  charged,  received,  paid or agreed to be paid to Lender exceed
the highest lawful rate  permissible  under  applicable usury laws. If, from any
circumstance whatsoever,  fulfillment of any provision hereof, of the Note or of
any other Loan Documents shall involve  transcending  the limit of such validity
prescribed  by any  law  which  a  court  of  competent  jurisdiction  may  deem
applicable  hereto,  then ipso facto,  the  obligation to be fulfilled  shall be
reduced to the limit of such validity; and if from any circumstance Lender shall
ever receive  anything of value deemed  interest by  applicable  law which would
exceed the highest  lawful rate,  such amount which would be excessive  interest
shall be applied to the  reduction  of the  principal of the Loan and not to the
payment of interest, or if such excessive interest exceeds the unpaid balance of
principal of the Loan,  such excess shall be refunded to Borrower.  All interest
paid or agreed to be paid to Lender shall, to the extent permitted by applicable
law, be amortized,  prorated,  allocated and spread  throughout  the full period
until payment in full of the principal so that the interest on the Loan for such
full period shall not exceed the highest  lawful rate.  Borrower  agrees that in
determining whether or not any interest payment under the Loan Documents exceeds
the highest lawful rate, any non-principal payment (except payments specifically
described in the Loan Documents as  "interest")  including  without  limitation,
prepayment fees and late charges,  shall to the maximum extent not prohibited by
law, be an expense, fee, premium or penalty rather than interest.  Lender hereby
expressly disclaims any intent to contract for, charge or receive interest in an
amount which exceeds the highest lawful rate.  The provisions of the Note,  this
Agreement,  and all other  Loan  Documents  are  hereby  modified  to the extent
necessary to conform with the  limitations  and provisions of this Section,  and
this Section shall govern over all other provisions in any document or agreement

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<PAGE>

now or hereafter  existing.  This Section  shall never be  superseded  or waived
unless  there  is a  written  document  executed  by the  Lender  and  Borrower,
expressly  declaring the usury limitation of this Agreement to be null and void,
and no other  method or language  shall be  effective to supersede or waive this
paragraph.

     12.5 Invalid  Provisions.  If any provision of this Agreement or any of the
other Loan  Documents  is held to be  illegal,  invalid or  unenforceable  under
present or future laws effective  during the term thereof,  such provision shall
be fully  severable,  this  Agreement  and the  other  Loan  Documents  shall be
construed and enforced as if such illegal,  invalid or  unenforceable  provision
had never  comprised  a part  hereof or thereof,  and the  remaining  provisions
hereof or  thereof  shall  remain  in full  force  and  effect  and shall not be
affected by the illegal,  invalid or unenforceable provision or by its severance
therefrom.  Furthermore,  in lieu  of such  illegal,  invalid  or  unenforceable
provision, there shall be added automatically as a part of this Agreement and/or
the other Loan Documents (as the case may be) a provision as similar in terms to
such  illegal,  invalid or  unenforceable  provision  as may be possible  and be
legal, valid and enforceable.

     12.6  Successors  and Assigns.  This Agreement and the other Loan Documents
shall be binding upon and inure to the benefit of Borrower,  the  Guarantor  and
Lender and their  respective  successors  and  assigns;  provided  that  neither
Borrower nor Guarantor  may transfer or assign any of its rights or  obligations
under this  Agreement,  the Commitment or the other Loan  Documents  without the
prior written consent of Lender.  This Agreement and the  transactions  provided
for or  contemplated  hereunder or under any of the Loan  Documents are intended
solely for the  benefit of the  parties  hereto.  No third  party shall have any
rights or derive  any  benefits  under or with  respect to this  Agreement,  the
Commitment or the other Loan Documents  except as specifically  set forth herein
or otherwise  provided in a written  document signed by Borrower and Lender.  No
person other than Borrower shall have standing to require  satisfaction  of such
conditions in  accordance  with their terms or be entitled to assume that Lender
will refuse to make advances in the absence of strict compliance with any or all
thereof,  and no other  Person,  other than  Borrower,  under any  circumstances
whatsoever,  shall be deemed to be a beneficiary of such conditions,  any or all
of which  Lender  freely  may waive in whole or in part,  at any time if, in its
sole discretion, it deems it desirable to do so. In particular,  Lender makes no
representation  and assumes no  obligation as to third  parties  concerning  the
quality of the  construction  of the  Improvements  by  Borrower  or the absence
therefrom of defects. In this connection, Borrower agrees to and shall indemnify
Lender from any  liability,  claim or loss,  together with  attorneys'  fees and
costs,  resulting  from  the  disbursement  of the  Loan  proceeds  or from  the
condition of the Property,  whether  related to the quality of  construction  or
otherwise  and  whether  arising  during  or after  the term of the  Loan.  This
provision  shall  survive the  repayment of the Loan and shall  continue in full
force and effect so long as the possibility of such liability or claim exists.

     12.7  Amendment.  This  Agreement  (including  all exhibits  and  schedules
hereto) may not be amended or modified,  and no term or provision  hereof may be
waived, except by a written instrument signed by all of the parties hereto.

     12.8  Counterparts;  Effectiveness.  This  Agreement  may be  signed in any
number of counterparts, each of which shall be an original, with the same effect
as if the  signature  thereto  and  hereto  were on the  same  instrument.  This
Agreement  shall  become   effective  upon  Lender's  receipt  of  one  or  more
counterparts hereof signed by Borrower, the Guarantor and Lender.

     12.9 Lender Not a Fiduciary.  The relationship  between Borrower and Lender
is solely  that of debtor and  creditor,  and Lender has no  fiduciary  or other
special relationship with Borrower or Guarantor, and no term or provision of any
of the Loan Documents shall be construed so as to deem the relationship  between
Borrower, the Guarantor and Lender to be other than that of debtor and creditor.

     12.10 Return of Pledged Notes Receivable.

          (a) In the event Borrower  complies with its Obligations under Section
     2.4(b) of this  Agreement  with respect to Pledged  Notes  Receivable  that
     cease to be Eligible Notes  Receivable and Borrower  thereafter  desires to
     enforce such  ineligible  Pledged  Note  Receivable  against the  Purchaser
     thereof,  then provided that no Event of Default has occurred which has not
     been cured to Lender's  satisfaction (as evidenced by a written  acceptance
     of such cure  executed by  Lender),  and no event has  occurred  which with
     notice,  the passage of time or both, would constitute an Event of Default,
     then within  thirty (30) days after its receipt of a written  request  from

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<PAGE>

     Borrower,  Lender shall  release  and/or cancel the  endorsement  in pledge
     previously  effected  by  Borrower  in favor of Lender,  without  recourse,
     (liberacion y/o cancelacion del endoso en prenda, sin responsabilidad  para
     el Acreedor) and  thereafter  deliver such  ineligible  Note  Receivable to
     Borrower;

          (b) In the event that all  Obligations  hereunder are fully  satisfied
     then,  within a reasonable  time  thereafter,  Lender shall release  and/or
     cancel the endorsement in pledge  previously  effected by Borrower in favor
     of Lender,  without  recourse,  (liberacion  y/o  cancelacion del endoso en
     prenda, sin  responsabilidad  para el Acreedor) and thereafter deliver such
     Pledged Notes Receivable to Borrower,  together with any other  nonrecourse
     Collateral  reassignment  documents requested and prepared by Borrower,  at
     Borrower's sole cost and expense.

     12.11 Accounting Principles.  Where the character or amount of any asset or
liability  or item of income or  expense is  required  to be  determined  or any
consolidation  or other  accounting  computation  is required to be made for the
purposes of this  Agreement,  the same shall be determined or made in accordance
with GAAP consistently  applied at the time in effect, to the extent applicable,
except where such  principles are  inconsistent  with the  requirements  of this
Agreement.

     12.12  Total  Agreement.  This  Agreement  and the  other  Loan  Documents,
including  the exhibits and  schedules  thereto,  comprise the entire  agreement
between the parties  relating to the subject  matter  hereof and  supersede  all
prior agreements and understandings,  both oral and written, between the parties
hereto  relating to the subject matter hereof  (including but not limited to the
Commitment, except as otherwise expressly provided herein), cannot be changed or
terminated  orally or by course of conduct,  and shall be deemed effective as of
the date it is accepted by Lender at the offices set forth above.

     12.13  Litigation.  TO THE FULLEST  EXTENT NOT PROHIBITED BY APPLICABLE LAW
WHICH  CANNOT BE WAIVED,  EACH OF  BORROWER,  THE  GUARANTOR  AND LENDER  HEREBY
KNOWINGLY,  VOLUNTARILY,  INTENTIONALLY AND IRREVOCABLY WAIVES ANY AND ALL RIGHT
TO A TRIAL BY JURY IN ANY ACTION OR  PROCEEDING  TO ENFORCE OR DEFEND OR CLARIFY
ANY RIGHT, POWER, REMEDY OR DEFENSE ARISING OUT OF OR RELATED TO THIS AGREEMENT,
THE OTHER LOAN DOCUMENTS,  OR THE TRANSACTIONS  CONTEMPLATED  HEREIN OR THEREIN,
WHETHER SOUNDING IN TORT OR CONTRACT OR OTHERWISE, OR WITH RESPECT TO ANY COURSE
OF CONDUCT,  COURSE OF DEALING,  STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS
OF ANY PARTY;  AND EACH AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED
BEFORE A JUDGE AND NOT BEFORE A JURY. EACH OF BORROWER, THE GUARANTOR AND LENDER
FURTHER WAIVES ANY RIGHT TO SEEK TO CONSOLIDATE  ANY SUCH  LITIGATION IN WHICH A
JURY  TRIAL HAS BEEN  WAIVED  WITH ANY OTHER  LITIGATION  IN WHICH A JURY  TRIAL
CANNOT  OR HAS NOT BEEN  WAIVED.  FURTHER,  BORROWER  AND THE  GUARANTOR  HEREBY
CERTIFY THAT NO REPRESENTATIVE OR AGENT OF LENDER,  INCLUDING  LENDER'S COUNSEL,
HAS REPRESENTED,  EXPRESSLY OR OTHERWISE, THAT LENDER WOULD NOT, IN THE EVENT OF
SUCH  LITIGATION,  SEEK TO ENFORCE THIS WAIVER OF RIGHT TO JURY TRIAL PROVISION.
BORROWER AND THE GUARANTOR ACKNOWLEDGE THAT THE PROVISIONS OF THIS SECTION ARE A
MATERIAL  INDUCEMENT TO LENDER'S ACCEPTANCE OF THIS AGREEMENT AND THE OTHER LOAN
DOCUMENTS.

     The waiver and  stipulations of Borrower,  the Guarantor and Lender in this
Section  12.13 shall  survive  the final  payment or  performance  of all of the
Obligations and the resulting termination of this Agreement.

     12.14 Incorporation of Exhibits. This Agreement, together with all exhibits
and schedules hereto, constitute one document and agreement which is referred to
herein by the use of the defined term  "Agreement."  Such exhibits and schedules
are  incorporated  herein  as  though  fully  set  out in  this  Agreement.  The
definitions  contained in any part of this Agreement shall apply to all parts of
this Agreement.

     12.15 Consent to Advertising and Publicity of Timeshare Documents. Borrower
hereby  consents  that the  Lender  may  issue  and  disseminate  to the  public
information  describing the credit  accommodation  entered into pursuant to this
Agreement,  consisting of the name and address of Borrower,  the Loan's  amount,
and the Collateral therefor.

     12.16 Directly or Indirectly.  Where any provision in the Agreement  refers
to action to be taken by any  Person,  or which such Person is  prohibited  from
taking,  such  provisions  shall be  applicable,  whether  such  action is taken
directly or indirectly by such Person.

                                       67
<PAGE>

     12.17 Headings.  Section  headings have been inserted in the Agreement as a
matter of convenience of reference only; such Section headings are not a part of
the Agreement and shall not be used in the interpretation of this Agreement.

     12.18  Gender.  Words of any gender in this  Agreement  shall  include each
other gender where appropriate.

     12.19  No  Duty.  All  attorneys,  accountants,   appraisers,  consultants,
custodians  and other  professionals  retained by Lender shall have the right to
act  exclusively in the interest of Lender and shall have no duty of disclosure,
duty of loyalty,  duty of care or other duty or obligation of any type or nature
whatsoever to Borrower, the Guarantor or any other Person.

     12.20 Reimbursement for Taxes. Borrower will promptly,  upon written demand
of  Lender,  reimburse  Lender  for any  taxes  assessed  against  Lender by the
Government  of Mexico or any  subdivision  thereof (with the exception of income
taxes  payable by Lender which are imposed on the net income of Lender) which is
on account of or measured by the  interest  income  received by Lender under the
Pledged  Notes  Receivable  and  Interval  Lease  Contracts  assigned  to Lender
pursuant to this Agreement or in any way imposed upon Lender in connection  with
the transactions  contemplated  hereunder,  including,  without limitation,  any
general intangible tax or documentary tax.

     12.21 Submissions.

          (a) All documents, agreements, reports, surveys, appraisals, insurance
     policies, references,  financial information and other submissions required
     to be furnished by Borrower or Guarantor to Lender hereunder or pursuant to
     any of the other Loan Documents  (collectively  "Submissions")  shall be in
     form and content satisfactory to Lender, in its reasonable discretion,  and
     prepared at Borrower's expense.

          (b)  Lender  shall  have the prior  right of  approval  of any  Person
     responsible  for preparing a Submission (a  "Preparer")  and may reject any
     Submission  if Lender,  in its  reasonable  discretion,  believes  that the
     experience,   skill  or   reputation   of  the   applicable   Preparer   is
     unsatisfactory in any respect whatsoever.

          (c) All reports and appraisals required to be furnished by Borrower or
     Guarantor  to  Lender  hereunder  or  pursuant  to any of  the  other  Loan
     documents  shall  specifically  be  addressed  to Lender  and  include  the
     following statement:

               THE UNDERSIGNED ACKNOWLEDGES THAT TEXTRON FINANCIAL
               CORPORATION IS RELYING ON THE WITHIN INFORMATION IN
                 CONNECTION WITH ITS ADVANCES TO BORROWER ON THE
                                SUBJECT RESORTS.

     12.22  Investigations  and Inquiries.  Borrower hereby authorizes Lender to
conduct  all  such  investigations  and  inquiries  as  to  credit,  operations,
Borrower, any Affiliate of Borrower,  Guarantor, any Material Party, the Resorts
and the  Collateral  as  shall be  necessary  or  desirable,  in  Lender's  sole
discretion,   in   connection   with  its   monitoring  of  the  Loan.  By  this
authorization,  individuals  of whom  Lender  may  make  any  such  inquiry  are
empowered  to  cooperate   with  and  supply  all  requested   information   and
documentation to Lender.

     12.23 Service of Process.  Borrower and Guarantor have  appointed  Raintree
Resorts International, Inc., with an address of 10000 Memorial Drive, Suite 480,
Houston, Texas 77024, as their agent for service of process ("Service of Process
Agent") who shall be  responsible  for accepting  service of process  within the
United States on behalf of Borrower and Guarantor.

     12.24  Joint and  Several  Liability.  All of the  Obligations,  covenants,
representations  and  warranties of Borrower in this Agreement and in any of the
remaining Loan Documents shall be the joint and several Obligations,  covenants,
representations and warranties of each entity constituting  Borrower,  except to
the extent as may be expressly set forth herein to the contrary. Although Lender
and Borrower intend that each entity constituting  Borrower shall be jointly and
severally liable for all  Obligations,  to the extent that this Agreement or the
other Loan  Documents may be determined to secure  indebtedness  of any Borrower
for which any other  Borrower is not  primarily  liable,  each  Borrower  entity
expressly  waives the benefit of any and all defenses  available to a guarantor,
surety,  endorser or accommodation  party dependant on an obligor's character as
such.

                                       68
<PAGE>

     IN WITNESS  WHEREOF,  Borrower,  Lender and the Guarantor  have caused this
Agreement to be duly executed and delivered effective as of the date first above
written.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.
                       SIGNATURES BEGIN ON FOLLOWING PAGE]

                                       69
<PAGE>

BORROWER:

WITNESS:                           CR Resorts Cancun, S. de R.L. de C.V., a
                                   Mexican limited responsibility   corporation
                                   with variable capital

____________________________       By:__________________________________
                  Witness          Name:
                                   Its:

                                                                          [SEAL]

WITNESS:                           CR  Resorts  Los  Cabos,  S. de R.L. de C.V.,
                                   a  Mexican  limited responsibility
                                   corporation     with      variable  capital

____________________________       By:__________________________________
                  Witness          Name:
                                   Its:

                                                                          [SEAL]

WITNESS:                           CR Resorts Puerto Vallarta, S.de R.L.de C.V.,
                                   a Mexican limited responsibility corporation
                                   with variable capital

____________________________       By:__________________________________
                  Witness          Name:
                                   Its:

                                                                          [SEAL]

WITNESS:                           Corporacion  Mexitur,  S.  de  R.L. de  C.V.,
                                   a  Mexican limited responsibility corporation
                                   with variable  capital

____________________________       By:__________________________________
                  Witness          Name:
                                   Its:

                                                                          [SEAL]

WITNESS:                           CR Resorts Cancun Timeshare Trust, S. de R.L.
                                   de C.V., a  Mexican  limited   responsibility
                                   corporation   with   variable  capital

____________________________       By:__________________________________
                  Witness          Name:
                                   Its:

                                                                          [SEAL]

WITNESSS:                          CR Resorts Cabos Timeshare Trust,  S. de R.L.
                                   de C.V., a Mexican  limited    responsibility
                                   corporation with   variable  capital

____________________________       By:__________________________________
                  Witness          Name:
                                   Its:

                                                                          [SEAL]

                                       70
<PAGE>

WITNESS:                           CR Resorts Puerto  Vallarta  Timeshare  Trust
                                   S. de R.L. de C.V., a Mexican limited
                                   responsibility corporation with variable
                                   capital

____________________________       By:__________________________________
                  Witness          Name:
                                   Its:

                                                                          [SEAL]

                                   LENDER:

                                   TEXTRON FINANCIAL CORPORATION,
                                   a Delaware corporation

____________________________       By:     ________________________________
                  Witness          Name:
                                   Its:

                                                                          [SEAL]

                                   GUARANTOR:

                                   Raintree   Resorts    International,    Inc.,
                                   a  Nevada corporation

____________________________       By:     _______________________________
                  Witness          Name:

                                   Its:

                                                                          [SEAL]

                                       71
<PAGE>

                                    EXHIBIT A

                     ASSIGNMENT Of PLEDGED NOTES RECEIVABLE
                          AND INTERVAL LEASE CONTRACTS

                                       72
<PAGE>

                                    EXHIBIT B

                        PERMITTED LIENS AND ENCUMBRANCES

               [TO BE COMPLETED UPON RECEIPT OF TITLE INFORMATION]

                                       73
<PAGE>

                                    EXHIBIT C

                      LEGAL DESCRIPTION OF RESORT PROPERTY

               [TO COMPLETE UPON RECEIPT OF FINAL TITLE POLICIES]

                                       74
<PAGE>

                                    EXHIBIT D

                               TIMESHARE DOCUMENTS

                 [TO BE COMPLETED UPON RECEIPT OF DOCUMENTATION]

                                       75
<PAGE>

                                    EXHIBIT E

                               PENDING LITIGATION

                                      NONE.

                                       76
<PAGE>

                                    EXHIBIT F

                    FORM OF REQUEST FOR ADVANCE (RECEIVABLES)

                                       77
<PAGE>

                                    EXHIBIT G

                               OPERATING CONTRACTS

                                       78
<PAGE>

                                    Exhibit H

                          FORM OF OFFICER'S CERTIFICATE

                                       79
<PAGE>

                                    EXHIBIT I

                         OWNERSHIP OF BORROWER ENTITIES

                                       80
<PAGE>

                                   SCHEDULE 1

                                SALES PROJECTIONS

                                       81PAYMENT GUARANTY AND SUBORDINATION AGREEMENT

     PAYMENT GUARANTY AND SUBORDINATION AGREEMENT (as amended from time to time,
this  "Guaranty  Agreement")  dated as of November 23, 1999, is made by Raintree
Resorts  International,  Inc., a Nevada corporation  ("Guarantor"),  in favor of
TEXTRON FINANCIAL CORPORATION, a Delaware corporation ("Lender").

                              PRELIMINARY STATEMENT

     CR Resorts  Cancun,  S. de R.L. de C.V., a Mexican  limited  responsibility
corporation with variable  capital,  CR Resorts Los Cabos, S. de R.L. de C.V., a
Mexican limited  responsibility  corporation with variable  capital,  CR Resorts
Puerto  Vallarta,  S.  de  R.L.  de  C.V.,  a  Mexican  limited   responsibility
corporation with variable capital,  Corporacion  Mexitur,  S. de R.L. de C.V., a
Mexican limited  responsibility  corporation with variable  capital,  CR Resorts
Cancun  Timeshare  Trust, S. de R.L. de C.V., a Mexican  limited  responsibility
corporation with variable capital,  CR Resorts Cabos Timeshare Trust, S. de R.L.
de C.V., a Mexican limited responsibility  corporation with variable capital and
CR Resorts Puerto Vallarta Timeshare Trust, S. de R.L. de C.V. a Mexican limited
responsibility  corporation  with variable  capital  (collectively,  jointly and
severally,   the  "Borrower"),   having  an  address  at  c/o  Raintree  Resorts
International,  Inc., 10000 Memorial Drive, Suite 480, Houston, Texas 77024, and
Lender have  entered  into a certain  Loan and  Security  Agreement  dated as of
November 23, 1999, as amended from time to time (the "Loan Agreement"). Pursuant
to the terms and subject to the  conditions of the Loan  Agreement and the other
Loan Documents,  Lender has agreed to lend to the Borrower up to  $10,000,000.00
(the "Loan").

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

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

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

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

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

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

                                       1
<PAGE>
     (b)  Guarantor  agrees  that the  guaranty  given  hereby is a guaranty  of
          payment  and not of  collection,  and that its  obligations  hereunder
          shall be primary,  absolute and  unconditional,  irrespective  of, and
          unaffected  by, the  Borrower's  performance  or failure to perform or
          satisfy all of its Obligations  arising out of the Note and other Loan
          Documents,  and Guarantor  irrevocably waives and agrees not to assert
          or take advantage of:

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

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

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

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

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

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

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

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

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

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

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

     (c)  To the extent  Borrower,  Guarantor,  or any other Person primarily or
          secondarily liable for the Obligations, makes a payment or payments to
          Lender,  all or any  portion  of  which is  subsequently  invalidated,
          declared to be fraudulent or preferential,  set aside or required, for
          any of the foregoing  reasons or for any other  reason,  to be waived,
          repaid or paid over to a trustee,  receiver  or any other  party under
          any  bankruptcy  or other Debtor  Relief Laws,  other state or federal
          law, common law or rule of equity, then the Guaranteed  Obligations or
          part  thereof  that were  intended to be  satisfied by such payment or
          payments shall, to the full extent of all of such payments required to
          be waived,  repaid,  restored or paid over,  automatically be revived,
          reinstated  and  continued in full force and effect as if said payment
          or payments had not been made, and Guarantor  shall again be primarily
          liable  therefor.  The  Guarantor's  obligations  under this  Guaranty
          Agreement  shall  not be  discharged  until  the  passage  of at least
          thirteen (13)  calendar  months from the last date on which occurs the

                                       2
<PAGE>
          full, final and indefeasible payment and performance of the Guaranteed
          Obligations;  provided,  however,  that this Guaranty  Agreement,  and
          Guarantor's  obligations hereunder,  shall continue to be effective or
          be  reinstated,  as the  case  may  be,  if at  any  time  payment  or
          performance of any of the  Obligations or Guaranteed  Obligations,  or
          any part thereof, is rescinded or waived or must otherwise be restored
          by Lender upon the  bankruptcy  or other  proceeding  under any Debtor
          Relief  Laws of or  affecting  the  Borrower or  Guarantor,  and shall
          continue  in full force and effect as long as there  exists a right to
          rescind,  or to  compel  restoration  or  waiver,  of any  payment  or
          performance of any of the Obligations or Guaranteed Obligations.  This
          provision shall survive full payment and performance of the Guaranteed
          Obligations and remain enforceable by Lender.

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

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

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

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

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

                                       3
<PAGE>
     3. Certain Waivers by Guarantor.  The Guarantor  irrevocably waives, to the
fullest extent permitted by law: (a) notice of acceptance hereof,  notice of the
extension  of credit or the  making of  Advances  from time to time,  and of the
creation,  existence or acquisition of any of the  Guaranteed  Obligations;  (b)
notice of the amount of the Guaranteed Obligations, or any other indebtedness of
the Borrower to the Lender from time to time outstanding;  subject,  however, to
Guarantor's  right to make written inquiry of the Lender to ascertain the amount
of the Guaranteed  Obligations or such other indebtedness from time to time; (c)
notice of adverse change in the Borrower's financial condition or any other fact
which might increase  Guarantor's risk; (d) presentment,  demand and protest and
notice of  presentment,  dishonor,  notice of  intent to  accelerate,  notice of
acceleration,  protest,  default,  nonpayment,  maturity,  release,  compromise,
settlement,  extension  or renewal of any or all of the Loan  Documents,  or any
other  instrument,  document or  agreement;  (e) notice of default and all other
notices to which Guarantor might otherwise be entitled; (f) all rights to notice
and a hearing  prior to the taking of  possession or control by Lender of, or to
Lender's replevy, attachment or levy upon the Collateral or any bond or security
which might be required by any court prior to allowing Lender to exercise any of
its remedies;  (g) the benefit of all valuation,  appraisal and exemption  laws;
(h) the benefit of all  provisions of law which are or might be in conflict with
the terms of this Guaranty Agreement or any of the other Loan Documents; and (i)
any defense arising by reason of the cessation from any cause  whatsoever of any
of the Obligations of Borrower.

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

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

     4. Waiver of Subrogation, Reimbursement, Etc.

     (a)  In  addition  to  other  waivers  contained   herein,   the  Guarantor
          irrevocably  waives  all  rights  it may  have  at  law  or in  equity
          (including without limitation any law subrogating the Guarantor to the
          rights of Lender) to seek contribution,  subrogation,  indemnification
          or any  other  form of  reimbursement  from the  Borrower,  any  other
          guarantor,   or  any  other  Person  now  or  hereafter  primarily  or
          secondarily  liable  for any of the  Obligations,  and all  claims  or
          potential claims related thereto, in a bankruptcy proceeding, or other
          proceeding  under any of the Debtor Relief Laws, or otherwise,  for or
          in connection with any disbursement  made by the Guarantor under or in
          connection with this Guaranty Agreement,  or otherwise;  and Guarantor
          further agrees not to contest such waiver in any proceeding; provided,
          however,  that if and to the extent, if any, that a court of competent
          jurisdiction  would deem the  Guarantor  to retain any such  rights of
          contribution,    indemnification,    subrogation   or    reimbursement
          notwithstanding  such express  waiver,  all such rights and all claims
          based thereon,  now or hereafter in existence and however  incurred or
          acquired,  shall be junior and  subordinate in right of payment to the
          prior and full indefeasible payment and performance in favor of Lender
          of the Obligations,  and Guarantor agrees that all such rights and all
          claims  based  thereon  shall be  inchoate,  and shall not vest in the
          Guarantor or be exercisable  until the date which is at least thirteen
          (13) calendar months from the last date on which all of the Guaranteed
          Obligations  shall  have  been  paid  in full to  Lender  and  finally
          discharged.  If any payment  shall be made to  Guarantor on account of
          such  reimbursement,   contribution,  indemnification  or  subrogation
          rights,  if any, at any time  before the passage of at least  thirteen
          (13) calendar months from the last date on which all of the Guaranteed
          Obligations  are paid in full and finally  discharged,  each amount so
          paid shall be received and held by Guarantor in trust for Lender,  and
          shall  forthwith be paid to Lender to be credited and applied  against
          the Obligations, whether matured or unmatured.

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

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

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

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

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

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

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

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

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

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

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

                                       5
<PAGE>
     (g)  apply any sums by  whomever  paid or however  realized  to any amounts
          owing by  Borrower  or  Guarantor  to Lender in such  manner as Lender
          shall determine in its discretion.

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

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

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

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

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

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

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

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

                                       6
<PAGE>
     (d)  Except as disclosed on Exhibit A hereto,  there are no actions,  suits
          or  proceedings  at law  or in  equity  or by or  before  the  Mexican
          regulatory  authorities or any other  governmental  or  administrative
          instrumentality   or   arbitration   board  or  other  agency  or  any
          investigation of any of Guarantor's  affairs or any of the Guarantor's
          properties or rights which involve the  possibility  of materially and
          adversely  affecting  the  Resorts,  or  all  or  any  portion  of the
          Collateral,  or other properties,  businesses,  profits,  prospects or
          conditions  of  Guarantor,  or if  adversely  determined,  which would
          materially affect Guarantor's ability to perform its obligations under
          this Guaranty Agreement;

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

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

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

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

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

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

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

     13. Certain Financial Matters.

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

                                       7
<PAGE>
     (b)  Until  payment in full of all the  Guaranteed  Obligations,  Guarantor
          will, at its expense,  within one hundred  twenty (120) days after the
          end of each calendar year,  furnish Lender with copies of federal (and
          if  applicable,  state) tax returns  (or, if not filed within such one
          hundred  twenty  (120) day  period,  then,  when  filed) and  personal
          financial  statements,  prepared  in  accordance  with  United  States
          generally  accepted  accounting  principles  on a  basis  consistently
          applied or in a manner acceptable to Lender.  Additionally,  Guarantor
          will,  at its  expense,  execute,  acknowledge  and  deliver  all such
          instruments  and take all such  action as Lender from time to time may
          reasonably  request in order to ensure to Lender the  benefits of this
          Guaranty  Agreement;  provided any such instruments and actions do not
          impose  any   material   obligations   on  Guarantor   not   otherwise
          contemplated herein.

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

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

     16. Miscellaneous.

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

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

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

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

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

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

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

     19. Relief from Automatic  Stay,  etc. To the fullest  extent  permitted by
law, in the event the Borrower or Guarantor  shall make  application for or seek
relief  or  protection   under  the  United  States  federal   bankruptcy   code
("Bankruptcy Code") or any other United States or Mexican Debtor Relief Laws, or

                                       8
<PAGE>
in the event that any  involuntary  petition is filed  against  the  Borrower or
Guarantor  under such Code or other Debtor Relief Laws,  and not dismissed  with
prejudice within  forty-five (45) days, the automatic stay provisions of Section
362 of the  Bankruptcy  Code are  hereby  modified  as to Lender  to the  extent
necessary to implement the provisions hereof  permitting  set-off and the filing
of financing  statements or other  instruments  or  documents;  and Lender shall
automatically  and without  demand or notice (each of which is hereby waived) be
entitled to immediate  relief from any automatic  stay imposed by Section 362 of
the Bankruptcy  Code or otherwise,  on or against the exercise of the rights and
remedies  otherwise  available to Lender as provided in the Loan  Documents.  In
addition,  in the  event  relief is sought  by or  against  Guarantor  under the
Bankruptcy Code,  Guarantor agrees not to seek,  directly or indirectly,  in any
ensuing bankruptcy proceeding, any extension of the exclusivity period otherwise
available to a debtor under the Bankruptcy Code, including,  without limitation,
the  exclusivity  period  provided for under Section  1121(b) of the  Bankruptcy
Code.  Guarantor  agrees not to contest the validity or  enforceability  of this
Section.

     20.  Waiver  of  Jury  Trial.  TO THE  FULLEST  EXTENT  NOT  PROHIBITED  BY
APPLICABLE  LAW  WHICH  CANNOT  BE  WAIVED,   THE  GUARANTOR  HEREBY  KNOWINGLY,
VOLUNTARILY,  INTENTIONALLY AND IRREVOCABLY  WAIVES ANY AND ALL RIGHT TO A TRIAL
BY JURY IN ANY ACTION OR  PROCEEDING  TO ENFORCE OR DEFEND OR CLARIFY ANY RIGHT,
POWER,  REMEDY OR DEFENSE ARISING OUT OF OR RELATED TO THIS GUARANTY  AGREEMENT,
THE OTHER LOAN DOCUMENTS,  OR THE TRANSACTIONS  CONTEMPLATED  HEREIN OR THEREIN,
WHETHER SOUNDING IN TORT OR CONTRACT OR OTHERWISE, OR WITH RESPECT TO ANY COURSE
OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS
OF ANY  PARTY;  AND AGREES  THAT ANY SUCH  ACTION OR  PROCEEDING  SHALL BE TRIED
BEFORE A JUDGE AND NOT BEFORE A JURY. THE GUARANTOR  FURTHER WAIVES ANY RIGHT TO
SEEK TO  CONSOLIDATE  ANY SUCH  LITIGATION IN WHICH A JURY TRIAL HAS BEEN WAIVED
WITH ANY OTHER  LITIGATION  IN WHICH A JURY TRIAL CANNOT OR HAS NOT BEEN WAIVED.
FURTHER,  GUARANTOR HEREBY CERTIFIES THAT NO  REPRESENTATIVE OR AGENT OF LENDER,
INCLUDING LENDER'S COUNSEL, HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT LENDER
WOULD NOT, IN THE EVENT OF SUCH LITIGATION, SEEK TO ENFORCE THIS WAIVER OF RIGHT
TO JURY TRIAL PROVISION.  THE GUARANTOR ACKNOWLEDGES THAT THE PROVISIONS OF THIS
SECTION  ARE A MATERIAL  INDUCEMENT  TO  LENDER'S  ACCEPTANCE  OF THIS  GUARANTY
AGREEMENT AND THE OTHER LOAN DOCUMENTS.

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

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

                   [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
                       SIGNATURES BEGIN ON FOLLOWING PAGE]

                                       9
<PAGE>

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

                                             GUARANTOR:

                                             Raintree Resorts International,
                                             Inc., a Nevada corporation

____________________________                 By:_______________________________
         Witness                             Name:

                                                                         [SEAL]

                                       10
<PAGE>

STATE OF _________________)

COUNTY OF ________________)

     The  foregoing  instrument  was  acknowledged  before  me  this  ______  of
________________, by _______________________________,  as_______________________
of Raintree Resorts International,  Inc., a Nevada corporation, on behalf of the
corporation. He/She is personally known to me.

                                             __________________________________
                                             Notary Public
                                                                         (SEAL)

My Commission Expires:_________________________

                                       11
<PAGE>

                                    EXHIBIT A

                               PENDING LITIGATION

                                       12

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