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                                                                   EXHIBIT 10.27

                        EXECUTIVE EMPLOYMENT AGREEMENT


     This EXECUTIVE EMPLOYMENT AGREEMENT ("Agreement") is made as of the first
day of October, 1997, between Patriot American Hospitality Operating Company, a
Delaware corporation (the "Company"), and Michael Grossman ("Executive").

     WHEREAS, Gencom Lessee, L.P., a Delaware limited partnership, has entered
into a Contribution Agreement with Patriot American Hospitality Operating
Company Partnership, L.P., a Delaware limited partnership (the "Operating
Partnership"), which provides, upon the terms and subject to the conditions
thereof, for the contribution of its interests in GAH-II, L.P., a Delaware
limited partnership, to the Operating Partnership;

     WHEREAS, the Company is desirous of engaging Executive to serve as the
Executive Vice President of the Company and President and Chief Operating
Officer of the GAH Division of the Company effective upon the closing of the
Contribution Agreement; and

     WHEREAS, Executive is desirous of committing to serve the Company on the
terms herein provided.

     NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein contained and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties agree as follows:

1.   EMPLOYMENT.  The initial term of this Agreement shall extend from the
effective closing date of the Contribution Agreement (the "Commencement Date")
until the third anniversary of the Commencement Date.  On or before the second
anniversary of the Commencement Date and each even anniversary thereafter, the
term of this Agreement shall (i) be formally extended for an additional two (2)
years by mutual agreement of the Company and Executive; or (ii) this Agreement
shall expire in accordance with its terms.  The term of this Agreement shall be
subject to termination as provided in Paragraph 6 and may be referred to herein
as the "Period of Employment."

2.   POSITION AND DUTIES. During the Period of Employment, Executive shall serve
as Executive Vice President of the Company and President and Chief Operating
Officer of the GAH Division of the Company, reporting to the President and Chief
Operating Officer of the Company, shall have supervision and control over and
responsibility for the day-to-day business and affairs of those functions and
operations of the GAH Division of the Company and shall have such other powers
and duties as may from time to time be prescribed by the Chairman, provided that
such duties are consistent with Executive's position or other positions that he
may hold from time to time. Executive shall devote his full working time and
efforts to the business and affairs of the Company. Notwithstanding the
foregoing, Executive may serve on other boards of directors or engage in
religious, charitable or other community activities as long as such services and
activities are disclosed to the Chairman and do not materially interfere with
Executive's performance of his duties to the Company as provided in this
Agreement.
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3.   COMPENSATION AND RELATED MATTERS.

     (A)  BASE SALARY.  Initially, Executive shall receive an annual base salary
("Base Salary") of Two Hundred and Fifty Thousand Dollars and xx/100 Cents
($250,000.00). Thereafter, Executive's Base Salary shall be redetermined at
least thirty (30) days before each annual compensation determination date
established by the Company during the Period of Employment in an amount to be
fixed by the Board.  The Base Salary, as redetermined, may be referred to herein
as "Adjusted Base Salary."  The Base Salary or Adjusted Base Salary shall be
payable in substantially equal bi-weekly installments and shall in no way limit
or reduce the obligations of the Company hereunder.

     (B)  INCENTIVE COMPENSATION.  In addition to Base Salary or Adjusted Base
Salary, Executive shall be eligible to receive, on or about the annual
compensation determination date established by the Company of each year, during
the Period of Employment, cash incentive compensation in an amount determined by
the Compensation Committee of the Board based on individual performance,
performance by the Company and total return to shareholders.  The incentive
compensation potential shall be up to eighty percent (80%) of Base Salary or
Adjusted Base Salary.  Executive will also participate in such incentive
compensation plans as the Board of Directors of the Company ("Board") shall
determine.

     (C)  EXPENSES.  Executive shall be entitled to receive prompt reimbursement
for all reasonable expenses incurred by him (in accordance with the policies and
procedures then in effect and established by the Company for its senior
executive officers) in performing services hereunder during the Period of
Employment, provided that Executive properly accounts therefor in accordance
with Company policy.

     (D)  OTHER BENEFITS.  During the Period of Employment, Executive shall be
entitled to continue to participate in or receive benefits under all of the
Company's Employee Benefit Plans in effect on the date hereof, or under plans or
arrangements that provide Executive with at least substantially equivalent
benefits to those provided under such Employee Benefit Plans. As used herein,
"Employee Benefit Plans" include, without limitation, each pension and
retirement plan; supplemental pension, retirement and deferred compensation
plan; savings and profit-sharing plan; stock ownership plan; stock purchase
plan; stock option plan; life insurance plan; medical insurance plan; disability
plan; and health and accident plan or arrangement established and maintained by
the Company on the date hereof for employees of the same status within the
hierarchy of the Company. To the extent that the scope or nature of benefits
described in this section are determined under the policies of the Company based
in whole or in part on the seniority or tenure of an employee's service,
Executive shall be deemed to have a tenure with the Company equal to the actual
time of Executive's service with Company plus the actual service by Executive
with GAH-II, L.P. (the "Previous Employer"). During the Period of Employment,
Executive shall be entitled to participate in or receive benefits under any
employee benefit plan or arrangement which may, in the future, be made available
by the Company to its executives and key management employees, subject to and on
a basis consistent with the terms, conditions and overall administration of such
plan or

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arrangement. Nothing paid to Executive under the Employee Benefit Plans
presently in effect or any employee benefit plan or arrangement which may be
made available in the future shall be deemed to be in lieu of compensation
payable to Executive under Subparagraphs 3(a) and 3(b). Any payments or benefits
payable to Executive under a plan or arrangement referred to in this
Subparagraph 3(d) in respect of any calendar year during which Executive is
employed by the Company for less than the whole of such year shall, unless
otherwise provided in the applicable plan or arrangement, be prorated in
accordance with the number of days in such calendar year during which he is so
employed. Should any such payments or benefits accrue on a fiscal (rather than
calendar) year, then the proration in the preceding sentence shall be on the
basis of a fiscal year rather than calendar year.

     (E)  LIFE INSURANCE. The Company shall pay the premiums on, and maintain in
effect throughout the Period of Employment, a life insurance policy on the life
of Executive in an amount not less than the sum of the amount of Executive's
then current Base Salary or Adjusted Base Salary plus the mid-point of his bonus
range.  Executive shall have the right to designate the beneficiary under such
policy.

     (F)  VACATIONS.  Executive shall be entitled to the number of paid vacation
days in each calendar year determined by the Company from time to time for its
senior executive officers.  Executive shall also be entitled to all paid
holidays given by the Company to its senior executive officers.  To the extent
that the scope or nature of benefits described in this section are determined
under the policies of the Company based in whole or in part on the seniority or
tenure of an employee's service, Executive shall be deemed to have a tenure with
the Company equal to the actual time of Executive's service with Company plus
the actual service by Executive to the Previous Employer.

     (G)  DISABILITY INSURANCE.  The Company shall pay the premiums on, and
maintain in effect throughout the Period of Employment, long-term disability
insurance providing for payment of benefits at rates not less than 60% of
Executive's current Base Salary or Adjusted Base Salary.

4.   UNAUTHORIZED DISCLOSURE.

     (A)  CONFIDENTIAL INFORMATION. Executive acknowledges that in the course of
his employment with the Previous Employer or the Company (and, if applicable,
the predecessors of either of them), he has been allowed to become, and will
continue to be allowed to become, acquainted with the Company's and Patriot
American Hospitality, Inc.'s ("Affiliated Company's") business affairs,
information, trade secrets, and other matters which are of a proprietary or
confidential nature, including but not limited to the Company's and Affiliated
Company's and their respective predecessors' operations, business opportunities,
price and cost information, finance, customer information, business plans,
various sales techniques, manuals, letters, notebooks, procedures, reports,
products, processes, services, and other confidential information and knowledge
(collectively the "Confidential Information") concerning the Company's,
Affiliated Company's and their respective predecessors' business.

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The Company agrees to provide on an ongoing basis such Confidential Information
as the Company deems necessary or desirable to aid Executive in the performance
of his duties. Executive understands and acknowledges that such Confidential
Information is confidential, and he agrees not to disclose such Confidential
Information to anyone outside the Company or the Affiliated Company except to
the extent that Executive deems such disclosure or use reasonably necessary or
appropriate in connection with performing his duties on behalf of the Company.
Executive further agrees that he will not during employment and/or at any time
thereafter use such Confidential Information (to the extent that it has not
become public) in competing, directly or indirectly, with the Company or the
Affiliated Company. At such time as Executive shall cease to be employed by the
Company, he will immediately turn over to the Company all Confidential
Information, including papers, documents, writings, electronically stored
information, other property, and all copies of them provided to or created by
him during the course of his employment with the Company (or, if applicable,
Previous Employer).

     (B)  HEIRS, SUCCESSORS, AND LEGAL REPRESENTATIVES. The foregoing provisions
of this Paragraph 4 shall be binding upon Executive's heirs, successors, and
legal representatives. The provisions of this Paragraph 4 shall survive the
termination of this Agreement for any reason.

5.   COVENANT NOT TO COMPETE.  The provisions of this Paragraph 5 shall apply
during Executive's employment with the Company and for a period of eighteen (18)
months or such longer period for which severance is payable under Paragraph 7
commencing when the employment relationship has ended for any reason other than
death; provided, however, that the prohibition set forth in the second sentence
of this Paragraph 5 shall not apply in the case of termination of employment
solely as a result of the expiration of the Period of Employment without
extension. In consideration for Executive's employment by the Company under the
terms provided in this Agreement and as a means to aid in the performance and
enforcement of the terms of the Unauthorized Disclosure provisions of Paragraph
4, Executive agrees that Executive will not, directly or indirectly, as an
owner, director, principal, agent, officer, employee, partner, consultant,
servant, or otherwise, carry on, operate, manage, control, or become involved in
any manner with any business, operation, corporation, partnership, association,
agency, or other person or entity which is in the business of owning, operating,
managing or granting franchise rights with respect to hotels, motels or other
lodging facilities in any area or territory in which the Company or Affiliated
Company conducts operations; provided, however, that the foregoing does not
prohibit Executive from owning up to one percent (1%) of the outstanding stock
of a publicly held corporation engaged in the hospitality business. Executive
also agrees that Executive will not, directly or indirectly, either for himself
or for any other business, operation, corporation, partnership, association,
agency, or other person or entity, call upon, compete for, solicit, divert, or
take away, or attempt to divert or take away any of the customers of the Company
or Affiliated Company in any of the areas or territories in which the Company or
Affiliated Company conducts operations. Further, Executive will not directly or
indirectly solicit or induce any present or future employee of the Company or
Affiliated Company to accept employment with Executive or with any business,
operation, corporation, partnership, association, agency, or other person or
entity with which Executive may be associated, and Executive will not employ or
cause any

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business, operation, corporation, partnership, association, agency, or other
person or entity with which Executive may be associated to employ any present or
future employee of the Company or Affiliated Company without providing the
Company or Affiliated Company with ten (10) days' prior written notice of such
proposed employment. Should Executive violate the provisions of this Paragraph,
then in addition to all other rights and remedies available to the Company or
Affiliated Company at law or in equity, the duration of this covenant shall
automatically be extended for the period of time from which Executive began such
violation until he permanently ceases such violation. Notwithstanding the
foregoing, Executive shall be permitted to continue to engage in activities that
would otherwise be prohibited by this Paragraph 5 with respect to the interests
he currently owns and which are described in Schedule I attached hereto and made
a part hereof by this reference and to engage in such activities with respect to
any other hotel, motel or lodging facility that would be immaterial to the
operations of the Company in the area or territory in question. Immateriality,
for purposes of the foregoing sentence, shall be determined in the sole
discretion of the Board of Directors in good faith. Notwithstanding anything to
the contrary contained herein, Executive's acceptance of a position with the
Gencom Group of companies or its subsidiaries or affiliates after his
termination of employment shall not be deemed to be a violation of the foregoing
non-compete provisions.

6.   TERMINATION. Executive's employment hereunder may be terminated without any
breach of this Agreement under the following circumstances:

     (A)  DEATH.  Executive's employment hereunder shall terminate upon his
death.

     (B)  DISABILITY.  If, as a result of Executive's incapacity due to physical
or mental illness, Executive shall have been absent from his duties hereunder on
a full-time basis for one hundred eighty (180) calendar days in the aggregate in
any twelve (12) month period, the Company may terminate Executive's employment
hereunder.

     (C)  TERMINATION BY COMPANY FOR CAUSE.  At any time during the Period of
Employment, the Company may terminate Executive's employment hereunder for Cause
if such termination is approved by a majority of the Board at a meeting of the
Board called and held for such purpose. For purposes of this Agreement "Cause"
shall mean: (A) conduct by Executive constituting a material act of willful
misconduct in connection with the performance of his duties, including, without
limitation, misappropriation of funds or property of the Company or any of its
affiliates other than the occasional, customary and de minimis use of Company
property for personal purposes; (B) criminal or civil conviction or conduct by
Executive that would reasonably be expected to result in material injury to the
reputation of the Company if he were retained in his position with the Company,
including, without limitation, conviction of a felony involving moral turpitude;
(C) continued, willful and deliberate non-performance by Executive of his
material duties hereunder (other than by reason of Executive's physical or
mental illness, incapacity or disability) and such non-performance has continued
for more than thirty (30) days following written notice of such non-performance
from the Board;

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or (D) a breach by Executive of any of the provisions contained in Paragraphs 4
and 5 of this Agreement.

     (D)  TERMINATION BY COMPANY FOR PERFORMANCE REASONS. At any time during the
Period of Employment, the Company may terminate Executive's employment if (i)
such termination is approved by a majority of the Board at a meeting of the
Board called and held for such purpose; and (ii) Executive has materially failed
to perform his duties hereunder or has violated, in material respects, the
policies and procedures of the Company and such failure or violation has
continued for more than ninety (90) days following written notice of such
violation from the Board.

     (E)  TERMINATION WITHOUT CAUSE.  At any time during the Period of
Employment, the Company may terminate Executive's employment hereunder without
Cause if such termination is approved by a majority of the Board at a meeting of
the Board called and held for such purpose.  Any termination by the Company of
Executive's employment under this Agreement which does not constitute a
termination for Cause under Subparagraph 6(c), termination for performance under
Subparagraph 6(d), or result from the death or disability of the Executive under
Subparagraph 6(a) or (b) shall be deemed a termination without Cause.

     (F)  TERMINATION BY EXECUTIVE. At any time during the Period of Employment,
Executive may terminate his employment hereunder for any reason, including but
not limited to Good Reason. For purposes of this Agreement, "Good Reason" shall
mean that Executive has complied with the "Good Reason Process" (hereinafter
defined) following the occurrence of any of the following events: (A) a
substantial diminution or other substantive adverse change, not consented to by
Executive, in the nature or scope of Executive's responsibilities, authorities,
powers, functions or duties from the responsibilities, authorities, powers,
functions or duties exercised by Executive immediately prior to the Commencement
Date; (B) any removal, during the Period of Employment, of Executive from or,
any failure by management to nominate, or, if nominated, any failure by the
Board to re-elect, Executive to any of the positions indicated in Paragraph 2,
except in connection with a termination of Executive's employment; (C) an
involuntary reduction in Executive's Base Salary or Adjusted Base Salary or
involuntary reduction in cash incentive compensation plan (but not reduction in
incentive compensation appropriate for level of performance) except for across-
the-board salary reductions similarly affecting all or substantially all
management employees; (D) a breach by the Company of any of its other material
obligations under this Agreement and the failure of the Company to cure such
breach within thirty (30) days after written notice thereof by Executive; (E)
the relocation of the Company's offices at which Executive is principally
employed or the relocation of the offices of Executive's primary workgroup to a
location more than thirty (30) miles from such offices, or the requirement by
the Company for Executive to be based anywhere other than the Company's offices
at such location on an extended basis, except for required travel on the
Company's business to an extent substantially consistent with Executive's
business travel obligations; or (F) any change in the identity of the person to
whom Executive directly reports; provided, however, that this clause (F) shall
cease to apply on and after the third anniversary of the Commencement Date.
"Good Reason Process" shall

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mean that (i) the Executive reasonably determines in good faith that a "Good
Reason" event has occurred; (ii) Executive notifies the Company in writing of
the occurrence of the Good Reason event; (iii) Executive cooperates in good
faith with the Company's efforts, for a period not less than ninety (90) days
following such notice, to modify Executive's employment situation in a manner
acceptable to Executive and Company; and (iv) notwithstanding such efforts, one
or more of the Good Reason events continues to exist and has not been modified
in a manner acceptable to Executive.

     (G)  NOTICE OF TERMINATION.  Except for termination as specified in
Subparagraph 6(a), any termination of Executive's employment by the Company or
any such termination by Executive shall be communicated by written Notice of
Termination to the other party hereto. For purposes of this Agreement, a "Notice
of Termination" shall mean a notice which shall indicate the specific
termination provision in this Agreement relied upon.

     (H)  DATE OF TERMINATION.  "Date of Termination" shall mean:  (A) if
Executive's employment is terminated by his death, the date of his death; (B) if
Executive's employment is terminated on account of disability under Subparagraph
6(b), the date on which Notice of Termination is given; (C) if Executive's
employment is terminated by the Company under Subparagraph 6(c), (d) or (e),
thirty (30) days after the date on which a Notice of Termination is given; and
(D) if Executive's employment is terminated by Executive under Subparagraph
6(f), thirty (30) days after the date on which a Notice of Termination is given.

7.   COMPENSATION UPON TERMINATION OR DURING DISABILITY.

     (a)  If Executive's employment terminates by reason of his death, the
Company shall, within ninety (90) days of death, pay in a lump sum amount to
such person as Executive shall designate in a notice filed with the Company or,
if no such person is designated, to Executive's estate, Executive's accrued and
unpaid Base Salary or, if applicable, his Adjusted Base Salary, to the date of
his death, plus his accrued and unpaid incentive compensation under Subparagraph
3(b). All unvested stock options and stock-based grants shall immediately vest
in Executive's estate or other legal representatives and become exercisable, and
Executive's estate or other legal representatives shall have one (1) year from
the Date of Termination, or remaining option term, if earlier, to exercise the
stock options. For a period of one (1) year following the Date of Termination,
the Company shall pay such health insurance premiums as may be necessary to
allow Executive's spouse and dependents to receive health insurance coverage
substantially similar to coverage they received prior to the Date of
Termination. In addition to the foregoing, any payments to which Executive's
spouse, beneficiaries, or estate may be entitled under any employee benefit plan
shall also be paid in accordance with the terms of such plan or arrangement.
Such payments, in the aggregate, shall fully discharge the Company's obligations
hereunder.

     (b)  During any period that Executive fails to perform his duties hereunder
as a result of incapacity due to physical or mental illness, Executive shall
continue to receive his accrued and unpaid Base Salary or, if applicable, his
Adjusted Base Salary and accrued and

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unpaid incentive compensation payments under Subparagraph 3(b), until
Executive's employment is terminated due to disability in accordance with
Subparagraph 6(b) or until Executive terminates his employment in accordance
with Subparagraph 6(f), whichever first occurs. All unvested stock options and
stock-based grants shall immediately vest and become exercisable and Executive
shall have one (1) year from the Date of Termination, or remaining option term,
if earlier, to exercise the stock options. For a period of one (1) year
following the Date of Termination, the Company shall pay such health insurance
premiums as may be necessary to allow Executive, Executive's spouse and
dependents to receive health insurance coverage substantially similar to
coverage they received prior to the Date of Termination. Upon termination due to
death prior to the termination first to occur as specified in the preceding
sentence, Subparagraph 7(a) shall apply.

     (c)  If Executive's employment is terminated by Executive other than for
Good Reason as provided in Subparagraph 6(f), then the Company shall, through
the Date of Termination, pay Executive his accrued and unpaid Base Salary or, if
applicable, his Adjusted Base Salary at the rate in effect at the time Notice of
Termination is given. Thereafter, the Company shall have no further obligations
to Executive except as otherwise expressly provided under this Agreement,
provided any such termination shall not adversely affect or alter Executive's
rights under any employee benefit plan of the Company in which Executive, at the
Date of Termination, has a vested interest, unless otherwise provided in such
employee benefit plan or any agreement or other instrument attendant thereto.

     (d)  If Executive terminates his employment for Good Reason as provided in
Subparagraph 6(f) or if Executive's employment is terminated by the Company
without Cause as provided in Subparagraph 6(e), then the Company shall, through
the Date of Termination, pay Executive his accrued and unpaid Base Salary or, if
applicable, his Adjusted Base-Salary at the rate in effect at the time Notice of
Termination is given and his accrued and unpaid incentive compensation under
Subparagraph 3(b). In addition, subject to signing by Executive of a general
release of claims (other than continuing rights under this Agreement) in a form
and manner satisfactory to the Company,

          (i)    the Company shall continue Executive's compensation at a rate
     equal to the sum of Executive's Average Base Salary and Average Incentive
     Compensation for the remaining term of the Agreement (but not less than
     eighteen (18) months) (the "Minimum Severance Amount") or such longer
     period provided by the Company's then current severance polices (the
     "Severance Amount"); provided, however, that in the event Executive
     commences any employment during the period of salary continuation, the
     Company shall be entitled to set-off against the remaining amount of salary
     continuation by the amount of any cash compensation received by Executive
     from the new employer. Such salary continuation shall be payable in equal
     installments, in advance, on a quarterly basis. The amount payable in each
     quarter will not be subject to any set-off so long as Executive certifies
     in writing prior to each quarterly payment that he has not accepted
     employment with a new employer (including, without limitation, contract and
     consulting engagements). Notwithstanding the foregoing, if

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     the Executive breaches any of the provisions contained in Paragraphs 4 and
     5 of this Agreement, all salary continuation payments shall immediately
     cease. For purposes of this Agreement, "Average Base Salary" shall mean the
     average of the annual Base Salary or, if applicable, Adjusted Base Salary
     received by Executive for each of the three (3) immediately preceding
     fiscal years or such fewer number of complete or partial fiscal years as
     Executive may have been employed by the Company. For purposes of this
     Agreement, "Average Incentive Compensation" shall mean the average of the
     annual incentive compensation under Subparagraph 3(b) received by Executive
     for the three (3) immediately preceding fiscal years or such fewer number
     of complete or partial fiscal years as Executive may have been employed by
     the Company. Notwithstanding the foregoing, in the event Executive
     terminates his employment for Good Reason as provided in Subparagraph 6(f),
     he shall be entitled to the Severance Amount or the Minimum Severance
     Amount only if he provides the Notice of Termination provided for in
     Subparagraph 6(g) within thirty (30) days after the occurrence of the event
     or events which constitute such Good Reason as specified in clauses (A),
     (B), (C), (D) and (E) of Subparagraph 6(f);

          (ii)   in addition to any other benefits to which Executive may be
     entitled in accordance with the Company's then existing severance policies,
     the Company shall:

                 (a)  for a period of six (6) months commencing on the Date of
          Termination, pay for the cost of executive outplacement services
          selected by Executive for use in connection with obtaining alternate
          employment; and

                 (b)  for a period of one (1) year commencing on the Date of
          Termination, pay such health insurance premiums as may be necessary to
          allow Executive, Executive's spouse and dependents to continue to
          receive health insurance coverage substantially similar to the
          coverage they received prior to his termination of employment; and

          (iii)  Executive shall receive all the rights and benefits granted or
     in effect with respect to Executive under the Company's employee stock
     option or incentive plans and agreements with Executive pursuant thereto.
     In addition to the foregoing, unless otherwise provided in the applicable
     option or award agreement, all stock options and other stock-based awards
     in which Executive otherwise would have vested if he would have remained
     employed for a period of twenty-four (24) months or if termination of
     employment occurs within the first twelve (12) months of the Commencement
     Date, the remaining length of the original three-year term after the Date
     of Termination commencing on the Date of Termination shall immediately
     accelerate and become exercisable or nonforfeitable as of the Date of
     Termination.

     (e)  If Executive's employment is terminated by the Company for Cause as
provided in Subparagraph 6(c) or for performance as provided in Subparagraph
6(d), then the Company shall, through the Date of Termination, pay Executive his
accrued and unpaid Base Salary or,

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if applicable, his Adjusted Base Salary at the rate in effect at the time Notice
of Termination is given and in case of termination for performance as provided
by Subparagraph 6(d), his accrued and unpaid incentive compensation under
Subparagraph 3(b).  Thereafter, the Company shall have no further obligations to
Executive except as otherwise expressly provided under this Agreement, provided
any such termination shall not adversely affect or alter Executive's rights
under any employee benefit plan of the Company in which Executive, at the Date
of Termination, has a vested interest, unless otherwise provided in such
employee benefit plan or any agreement or other instrument attendant thereto.
Notwithstanding the foregoing and in addition to whatever other rights or
remedies the Company may have at law or in equity, all stock options held by
Executive shall immediately expire on the Date of Termination if Executive's
employment is terminated by the Company for Cause as provided by Subparagraph
6(c).

     (f)  If Executive's employment is terminated as a result of the expiration
of the Period of Employment without extension, then the Company shall, through
the Date of Termination, pay Executive his accrued and unpaid Base Salary or, if
applicable, his Adjusted Base Salary at the rate in effect at the time Notice of
Termination is given and his accrued and unpaid incentive compensation under
Subparagraph 3(b).  Thereafter, the Company shall have no further obligations to
Executive except as otherwise expressly provided under this Agreement, provided
any such termination shall not adversely affect or alter Executive's rights
under any employee benefit plan of the Company in which Executive, at the Date
of Termination, has a vested interest, unless otherwise provided in such
employee benefit plan or any agreement or other instrument attendant thereto.

     (g)  Regardless the reason for termination, for a period of three (3) years
beginning on the Date of Termination, the Company will provide at the expense of
the Company such reasonable assistance and support to Executive as he shall
reasonably require in connection with the preparation and filing of tax returns,
statements and forms insofar as such returns, statements and forms relate to
Executive's association with the Company, Affiliated Company, Previous Employer
or any of their respective predecessors or affiliates.  At the Company's
election, such assistance and support shall be provided by either tax personnel
of the Company or certified public accountants selected and compensated by the
Company.

     (h)  Nothing contained in the foregoing Subparagraphs 7(a) through 7(f)
shall be construed so as to affect Executive's rights or the Company's
obligations relating to agreements or benefits which are unrelated to
termination of employment.

8.   PARACHUTE PAYMENT.  The provisions of this Paragraph 8 set forth certain
terms of an agreement reached between Executive and the Company regarding
Executive's rights and obligations upon the occurrence of a Change in Control of
the Company.  These provisions are intended to assure and encourage in advance
Executive's continued attention and dedication to his assigned duties and his
objectivity during the pendency and after the occurrence of any such event.
These provisions shall apply in lieu of, and expressly supersede, the provisions
of Subparagraph 7(d)(i) regarding severance pay upon a termination of
employment, if such

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termination of employment occurs within eighteen (18) months after the
occurrence of the first event constituting a Change in Control. These provisions
shall terminate and be of no further force or effect beginning eighteen (18)
months after the occurrence of a Change in Control.

     (A)  ESCROW.  Within fifteen (15) days after the occurrence of the first
event constituting a Change in Control, the Company shall place funds in an
amount equal to the estimated Parachute Amount in escrow, pursuant to
arrangements that are mutually acceptable to the Company and Executive providing
for the payment of the Parachute Amount in the event Executive becomes entitled
thereto pursuant to Subparagraph 8(b)(i) (the "Escrow Arrangement"). The Escrow
Arrangement shall be maintained until the earlier of (A) eighteen (18) months
after the occurrence of the first event constituting a Change in Control or (B)
the payment to Executive of the Parachute Amount pursuant to the provisions of
Subparagraph 8(b)(i).

     (B)  CHANGE IN CONTROL. If within eighteen (18) months after the occurrence
of the first event constituting a Change in Control, Executive's employment
terminates for any reason other than (A) death, (B) his inability, due to
illness, accident, or other physical or mental incapacity, to perform his duties
for more than one hundred eighty (180) days during any twelve-month period or
(C) his Voluntary Resignation ("Termination"), then:

          (i)    the Company shall pay Executive in a lump sum an amount equal
     to the applicable Parachute Amount on the tenth (10th) day following
     Executive's Termination; and

          (ii)   unless otherwise provided in the applicable option agreement or
     award agreement, all stock options and other stock-based awards granted to
     Executive by the Company shall immediately accelerate and become
     exercisable or non-forfeitable as of the date of Change in Control, and
     Executive shall be entitled to any other rights and benefits with respect
     to stock-related awards, to the extent and upon the terms provided in the
     employee stock option or incentive plan or any agreement or other
     instrument attendant thereto pursuant to which such options or awards were
     granted.

     (C)  GROSS UP PAYMENT.

          (i)    Excess Parachute Payment.  If Executive incurs the tax (the
     "Excise Tax") imposed by Section 4999 of the Internal Revenue Code of 1986
     (the "Code") on "excess parachute payments" within the meaning of Section
     280G(b)(1) of the Code, the Company will pay to Executive an amount (the
     "Gross Up Payment") such that the net amount retained by Executive, after
     deduction of any Excise Tax on the excess parachute payment and any
     federal, state and local taxes (together with penalties and interest) and
     Excise Tax upon the payment provided for by this Subparagraph 8(c)(i), will
     be equal to the Parachute Amount.

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<PAGE>

          (ii)   Applicable Rates. For purposes of determining the amount of the
     Gross Up Payment, Executive will be deemed to pay federal income taxes at
     the highest marginal rate of federal taxation in the calendar year in which
     the Gross Up Payment is to be made and state and local income taxes at the
     highest marginal rates of taxation in the state and locality of Executive's
     residence on the date of Executive's Termination, net of the maximum
     reduction in federal income taxes that could be obtained from deduction of
     such state and local taxes.

          (iii)  Determination of Gross Up Payment Amount.  The determination of
     whether the Excise Tax is payable and the amount thereof will be based upon
     the opinion of tax counsel selected by Executive and approved by the
     Company, which approval will not be unreasonably withheld.  The costs of
     obtaining the opinion of tax counsel shall be borne by the Company.  If
     such opinion is not finally accepted by the Internal Revenue Service (or
     state and local taxing authorities), then appropriate adjustments to the
     Excise Tax will be computed and additional Gross Up Payments will be made
     in the manner provided by this Subparagraph (c).

          (iv)   Time For Payment.  The Company will pay the estimated amount of
     the Gross Up Payment in cash to Executive concurrent with Employee's
     Termination. Executive and the Company agree to reasonably cooperate in the
     determination of the actual amount of the Gross Up Payment.  Further,
     Executive and the Company agree to make such adjustments to the estimated
     amount of the Gross Up Payment as may be necessary to equal the actual
     amount of the Gross Up Payment, which in the case of Executive will refer
     to refunds of prior overpayments and in the case of the Company will refer
     to makeup of prior underpayments.

     (D)  DEFINITIONS.  For purposes of this Paragraph 8, the following terms
shall have the following meanings:

          "CHANGE IN CONTROL" shall mean an event which shall be deemed to have
     occurred if (i) any "person" or "group" (as such terms are used in Sections
     13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the
     "Exchange Act"), other than a trustee or other fiduciary holding securities
     under an employee benefit plan of the Company, is or becomes the
     "beneficial owner" (as defined in Rule 13d-3 promulgated under the Exchange
     Act), directly or indirectly, of securities of the Company representing 25%
     or more of the combined voting power of the Company's then outstanding
     securities; or (ii) individuals who at the Commencement Date constitute the
     Board and any new director (other than a director designated by a person
     who has entered into an agreement with the Company to effect a transaction
     described in clauses (i) or (iii) of this paragraph) whose election by the
     Board or nomination for election by the Company's stockholders was approved
     by a vote of at least eighty percent (80%) of the directors then still in
     office who either were directors at the Commencement Date or whose election
     or nomination for election was previously so approved, cease for any reason
     to constitute a majority of the Board; or (iii) the

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<PAGE>

     stockholders of the Company approve a merger or consolidation of the
     Company with or into any other corporation, other than a merger or
     consolidation which would result in the voting securities of the Company
     outstanding immediately prior thereto continuing to represent (either by
     remaining outstanding or by being converted into voting securities of the
     surviving entity) at least sixty percent (60%) of the combined voting power
     of the voting securities of the Company or such surviving entity
     outstanding immediately after such merger or consolidation; or (iv) the
     stockholders of the Company approve a plan of complete liquidation of the
     Company or an agreement for the sale or disposition by the Company of all
     or substantially all the Company's assets.

          "PARACHUTE AMOUNT" shall mean an amount equal to the greater of the
     Severance Amount or the Minimum Severance Amount provided for in
     Subparagraph 7(d)(i).

          "VOLUNTARY RESIGNATION" shall mean any termination of Executive's
     employment by his own act, unless such termination is for Good Reason.

9.   NOTICE.  For purposes of this Agreement, notices and all other
communications provided for in the Agreement shall be in writing and shall be
deemed to have been duly given when delivered or mailed by United States
certified mail, return receipt requested, postage prepaid, addressed as follows:

          if to the Executive:

               At his home address as shown
               in the Company's personnel records;

          if to the Company:

               Patriot American Hospitality Operating Company
               3030 LBJ Freeway, Suite 1500
               Dallas, TX  75234
               Attn.:  General Counsel

or to such other address as either party may have furnished to the other in
writing in accordance herewith, except that notices of change of address shall
be effective only upon receipt.

10.  MISCELLANEOUS.  No provisions of this Agreement may be modified, waived, or
discharged unless such waiver, modification, or discharge is agreed to in
writing and signed by Executive and such officer of the Company as may be
specifically designated by the Board. No waiver by either party hereto of, or
compliance with, any condition or provision of this Agreement to be performed by
such other party shall be deemed a waiver of similar or

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<PAGE>

dissimilar provisions or conditions at the same or at any prior or subsequent
time.  No agreements or representations, oral or otherwise, express or implied,
unless specifically referred to herein, with respect to the subject matter
hereof have been made by either party which are not set forth expressly in this
Agreement.  The validity, interpretation, construction, and performance of this
Agreement shall be governed by the laws of the State of Texas (without regard to
principles of conflicts of laws).

11.  VALIDITY.  The invalidity or unenforceability of any provision or
provisions of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement, which shall remain in full force and
effect.  The invalid portion of this Agreement, if any, shall be modified by any
court having jurisdiction to the extent necessary to render such portion
enforceable.

12.  COUNTERPARTS.  This Agreement may be executed in several counterparts, each
of which shall be deemed to be an original but all of which together will
constitute one and the same instrument.

13.  ARBITRATION; OTHER DISPUTES.  In the event of any dispute or controversy
arising under or in connection with this Agreement, the parties shall first
promptly try in good faith to settle such dispute or controversy by mediation
under the Commercial Mediation Rules of the American Arbitration Association
before resorting to arbitration. In the event such dispute or controversy
remains unresolved in whole or in part for a period of thirty (30) days after it
arises, the parties will settle any remaining dispute or controversy exclusively
by arbitration in Dallas, Texas, in accordance with the rules of the American
Arbitration Association then in effect. Judgment may be entered on the
arbitrator's award in any court having jurisdiction. Notwithstanding the above,
the Company shall be entitled to seek a restraining order or injunction in any
court of competent jurisdiction to prevent any continuation of any violation of
Paragraph 4 or 5 hereof. Furthermore, should a dispute occur concerning
Executive's mental or physical capacity as described in Subparagraph 6(b), 6(c)
or 7(b), a doctor selected by Executive and a doctor selected by the Company
shall be entitled to examine Executive. If the opinion of the Company's doctor
and Executive's doctor conflict, the Company's doctor and Executive's doctor
shall together agree upon a third doctor, whose opinion shall be binding. Any
amount to which Executive is entitled under this Agreement (including any
disputed amount), which is not paid when due, shall bear interest at a rate
equal to the lesser of eighteen percent (18%) per annum or the maximum lawful
rate.

14.  THIRD-PARTY AGREEMENTS AND RIGHTS.  Executive represents to the Company
that Executive's execution of this Agreement, Executive's employment with the
Company and the performance of Executive's proposed duties for the Company will
not violate any obligations Executive may have to any employer or other party,
and Executive will not bring to the premises of the Company any copies or other
tangible embodiments of non-public information belonging to or obtained from any
such previous employment or other party.

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<PAGE>

15.  LITIGATION AND REGULATORY COOPERATION.  During and after Executive's
employment, Executive shall reasonably cooperate with the Company in the defense
or prosecution of any claims or actions now in existence or which may be brought
in the future against or on behalf of the Company which relate to events or
occurrences that transpired while Executive was employed by the Company;
provided, however, that such cooperation shall not materially and adversely
affect Executive or expose Executive to an increased probability of civil or
criminal litigation. Executive's cooperation in connection with such claims or
actions shall include, but not be limited to, being available to meet with
counsel to prepare for discovery or trial and to act as a witness on behalf of
the Company at mutually convenient times. During and after Executive's
employment, Executive also shall cooperate fully with the Company in connection
with any investigation or review of any federal, state or local regulatory
authority as any such investigation or review relates to events or occurrences
that transpired while Executive was employed by the Company. The Company shall
also provide Executive with compensation on an hourly basis calculated at his
final base compensation rate for requested litigation and regulatory cooperation
that occurs after his termination of employment, and reimburse Executive for all
costs and expenses incurred in connection with his performance under this
Paragraph 15, including, but not limited to, reasonable attorneys' fees and
costs.

16.  ASSIGNMENT.  At the sole election of the Company, this Agreement may be
assigned by the Company to Patriot American Hospitality, Inc.

     IN WITNESS WHEREOF, the parties have executed this Agreement effective on
the date and year first above written.


                                        PATRIOT AMERICAN HOSPITALITY OPERATING
                                        COMPANY


                                        By:  /s/ Paul A. Nussbaum
                                             ---------------------------------
                                        Its:  Chairman and Chief Executive
                                               Officer

                                        /s/   Michael Grossman
                                        --------------------------------------
                                        Michael Grossman

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