THIRD AMENDMENT OF HOTEL GROUND LEASE


          THIS THIRD AMENDMENT OF HOTEL GROUND LEASE (the
"Amendment") is dated and effective as of September 5, 1996
and made by and between MAUI LAND & PINEAPPLE COMPANY, INC.,
a Hawaii corporation ("Lessor"), whose principal place of
business is 120 Kane Street, Kahului, Maui, Hawaii and whose
post office address is P.O. Box 187, Kahului, Maui, Hawaii
96732 and YCP KAPALUA L.P., a Delaware limited partnership
("Lessee"), whose principal place of business and post
office address is 950 East Paces Ferry Road, Suite 3210,
Atlanta, Georgia 30326.



                      R E C I T A L S:


          Lessor and THE KBH COMPANY, a California limited
partnership, as lessee, entered into that certain Hotel
Ground Lease (Sublease) dated October 22, 1985, a Memorandum
of which is recorded in the Bureau of Conveyances of the
State of Hawaii (the "Bureau") in Book 19021, Page 378,
demising certain premises in Kapalua, Maui, Hawaii which are
commonly referred to as The Kapalua Bay Hotel.

          The Hotel Ground Lease was amended by Lessor's
Consent to Mortgages; Amendment of Lease; and Estoppel
Certificate dated June 13, 1990 and was further amended by
Second Amendment of Lease dated October 14, 1991 (the Hotel
Ground Lease, as amended, is referred to herein as the
"Lease").

          By Assignment of Lease dated June 13, 1990 and
filed in the Bureau (the "Bureau") as Document No.
90-089060, THE KBH COMPANY assigned all of its right, title
and interest in and to the Lease to KBH OPERATIONS LIMITED
PARTNERSHIP ("KBH"), a Hawaii limited partnership, which
Assignment was consented to by Lessor by Lessor's Consent to
Assignment of Lease dated June 13, 1990, and which Consent
was filed in the Bureau as Document No. 90-089061.

          By Assignment of Ground Lease dated September 5,
1996, KBH assigned all of its right, title and interest in
and to the Lease to Lessee, and Lessor and Lessee now desire
to amend the Lease as set forth in this Amendment, which
Assignment is hereby consented to by Lessor.

          NOW, THEREFORE, in consideration of these premises
and other good and valuable consideration, the Lessor and
Lessee hereby agree, effective as of the date first set
forth above, to amend the Lease as follows.

          1.   Article I (Definitions), Section 2 (Term)
shall be deleted in its entirety and replaced with the
following:

          "Term" shall mean the term of this Lease which
     shall commence on the Effective Date and terminate at
     midnight on December 31, 2095.

          2.   Article I (Definitions), Section 3(n) is
hereby amended in its entirety to read as follows:

          (n)  Hotel Operator.  "Hotel Operator" shall mean
a person or entity experienced in the management of a
first-class national or international luxury resort hotel at
standards equal to the 1994 published standard necessary to
receive at least a 4-Diamond rating from the American
Automobile Association."

          3.   Article I (Definitions), Section 3(bb) is
hereby added to the section (following the end of Section
3(aa)) to read as follows:

          (bb) Kapalua Villas Management Agreement.  The
"Kapalua Villas Management Agreement" shall mean that
certain agreement dated September 5, 1996 between Lessee and
Lessor dealing with the management of rental units at the
Kapalua Villa Condominium project at Kapalua, Maui, which
agreement is (i) being executed by Lessee and Lessor
concurrently or substantially concurrently with this Third
Amendment of Hotel Ground Lease and (ii) incorporated herein
by reference.

          4.   [Intentionally Omitted].

          5.   Article III (Rental), Section 2 is hereby
amended by adding thereto a new clause (7) to be placed
after the end of clause (6) which appears in the first
paragraph of this Section 2 to read as follows:

          "and (7) any income received by Lessee under the
Kapalua Villas Management Agreement (including revenues
based on Buyer's Revenue Percentage as defined therein).

          6.   Article III (Rental), Section 2 is hereby
amended by changing the first sentence of the second
paragraph of this Section 2 to read as follows:

          The term "Gross Annual Rental Income" shall mean
all revenues and income of any kind whether in the form of
cash, property or services (i.e., barter, "contra" accounts
and such alternatives to cash payments) actually received by
Lessee from the operations of any Concessionaires occurring
on or from the Premises during any Lease Years during the
Term, specifically including therein any revenue actually
received by Lessee from the management and rental of
condominiums in the Kapalua Resort area, but specifically
excluding therefrom any revenue received by Lessee under the
Kapalua Villas Management Agreement (including revenues
based on Buyer's Revenue Percentage as defined therein).

          7.   [Intentionally Omitted].

          8.   Article III (Rental), Sections 3(f) and 3(g)
are hereby amended in their entirety to read as follows:

          (f)  Beginning on September 5, 1996 and ending on
December 31, 2002, the annual minimum rent shall be O (zero)
and only percentage rent as provided for in Section 4(vi) of
this Article III shall be payable during this period.

          (g)  Beginning January 1, 2003 through December
31, 2007, and for each 5-year period thereafter during the
term of this Lease (and any lesser period ending on the
expiration date of this Lease), the annual minimum rent
shall be 4% of 75% of the average annual Gross Revenues of
the five years (i) immediately preceding January 1, 2003 or,
(ii) in the case of each 5-year period thereafter,
immediately preceding the beginning of such 5-year period.

          9.   Article III, Section 4 (Percentage Rent),
paragraph (a)(v) and the examples following thereafter are
hereby deleted and replaced with the following:

          (v)  Beginning September 5, 1996 and continuing
     through September 4, 1997, a percentage rent equal to
     0% (zero) of the Gross Revenues for that period. 
     Beginning September 5, 1997 and continuing through
     September 4, 1998, a percentage rent equal to 2% of
     Gross Revenues for that period.  Beginning September 5,
     1998 and continuing through September 4, 1999, a
     percentage rent equal to 3% of Gross Revenues for that
     period.  Beginning September 5, 1999 and every Lease
     Year thereafter, a percentage rent equal to 4% of Gross
     Revenues for each such Lease Year.

          10.  Article III (Rental), Section 5 is hereby
amended by changing the second sentence in its entirety to
read as follows:

          Lessor understands that (i) Lessee is vitally
interested in the image of the Hotel and the Kapalua Resort
Area presented to former and prospective guests of the
Hotel, (ii) Lessee's guest list constitutes valuable and
confidential trade secrets of either Lessee or of Lessee's
Hotel Operator and (iii) to the extent the guest list sought
by Lessor is proprietary property of the Hotel Operator,
Lessee shall use its best efforts, upon Lessor's request, to
make such information available to Lessor, but that Lessee's
obligation shall be subject to the Hotel Operator's
agreement to release the same.

          11.  Article V (Mortgages), Section 3 (Protection
of Mortgagee) is amended in its entirety to read as follows:

          3.   Protection of Mortgagees.  During the
existence of any permitted mortgage of this Lease, Lessor
shall not terminate this Lease by reason of any default by
Lessee, or for any other cause whatsoever, if, within ninety
days after Lessor has mailed to the holder of the mortgage
at its last known address a written notice of Lessor's
intention to terminate the interest of Lessee, the mortgagee
or its permitted assignee cures such default, provided that
it can be cured by the payment of money, or, if it cannot be
cured by the payment of money, the mortgagee or its
permitted assignee shall undertake in writing to observe and
perform, and shall thereafter observe and perform with due
diligence and in reasonable good faith, until such time as
this Lease is sold upon foreclosure or assigned in lieu of
foreclosure, all of the covenants and conditions which
Lessee is obligated to observe and perform under this Lease
and which can be observed and performed by the mortgagee or
its permitted assignee.  In the event of such an
undertaking, Lessor shall not terminate this Lease within
such further time as may be required by the mortgagee to
complete foreclosure, assignment in lieu of foreclosure or
such other remedy as may be available under its mortgage,
provided that (i) such remedy is pursued promptly and
completed in a diligent manner, and (ii) all rent and other
charges accruing hereunder are paid as they become due. 
Upon a foreclosure sale of this Lease or an assignment in
lieu of foreclosure, the time for performance of any
obligation of Lessee then in default (other than the payment
of money) will be extended by the time necessary to complete
such performance with the exercise of diligence.  Any
default consisting of Lessee's failure to discharge promptly
any lien, charge or encumbrance against the Premises junior
in priority to an authorized mortgage of this Lease will be
deemed to be duly cured if such mortgage is foreclosed by
appropriate action instituted within the ninety-day period
specified in this Lease and is thereafter prosecuted and
completed in a diligent manner, but it being understood that
Lessor shall have no obligation to mortgagee if such junior
liens, charges or encumbrances are not so cured.  Any
default not susceptible of being cured by a mortgagee or
party acquiring title to Lessee's leasehold estate shall be
deemed waived by Lessor upon completion of the foreclosure
proceeding or acquisition of Lessee's interest as a result
of the mortgagee's exercise of its remedies.  Any person
acquiring the leasehold estate in accordance with paragraph
1 of Article V in consideration of the extinguishment of
debt or through foreclosure sale, judicial or otherwise, or
any party claiming by, through or under any such person,
provided the lease rent is paid, shall be liable to perform
the obligations imposed upon the Lessee by the Lease only
during the period such person or party has possession or
ownership of the leasehold estate.

               (a)  In the event of the bankruptcy of
Lessee, Lessor agrees to waive the sixty-day limitation
period under section 365 of the Bankruptcy Code (11 U.S.C. 
365) for an extension period of thirty days, provided that
all rent and other charges due under this Lease are paid
when due.

               (b)  If this Lease is terminated prior to the
natural expiration of the term hereof, as a result of an
actual or deemed rejection of the Lease under any provision
of the Bankruptcy Code (11 U.S.C.) or any successor law
having similar effect, then, and in any such event, the
mortgagee or its permitted assignee or permitted designee
(as set forth below) will thereupon have the option to
obtain a new Lease (the "Mortgagee's Lease") of the Premises
in accordance with and upon the following terms and
conditions:

               (i)  The mortgagee shall pay or cause to be
     paid to Lessor at the time of the execution and
     delivery of the Mortgagee's Lease any and all sums
     which are at the time of execution and delivery thereof
     due under this Lease and, in addition thereto, all
     reasonable expenses (including reasonable attorneys'
     fees) which Lessor shall have incurred by reason of the
     actual or deemed rejection of this Lease and the
     execution and delivery of the Mortgagee's Lease.

               (ii)  Upon the written request of the mort-
     gagee delivered to Lessor within sixty days after the
     actual or deemed rejection of this Lease as aforesaid,
     Lessor shall enter into the Mortgagee's Lease of the
     Premises with the mortgagee, or a subsidiary or other
     affiliate of the mortgagee as it may designate or, with
     the Lessor's approval (which may be given or withheld
     in Lessor's sole discretion), another designee, as
     provided in this Section; provided, however, that, if
     Lessor receives no such written request within said
     sixty-day period, then all of the mortgagee's rights to
     the Mortgagee's Lease hereunder will automatically
     terminate and mortgagee shall cooperate by executing
     and delivering to Lessor such documents as may be
     reasonably necessary to accomplish this paragraph.

               (iii) The Mortgagee's Lease will be effective
     as of the date of termination of this Lease and will be
     for the remainder of the term of this Lease, at the
     same rent, additional rent or other charges herein
     provided and otherwise upon the same agreements, terms,
     covenants and conditions herein, except that the
     Mortgagee's Lease will also include an additional
     indemnity paragraph under the terms of which the lessee
     named therein shall indemnify Lessor against and hold
     Lessor harmless from all claims, demands and liability
     whatsoever, by whomsoever made, for loss or damage
     arising out of or in connection with the issuance of
     the Mortgagee's Lease and shall promptly reimburse
     Lessor for its costs and expenses (including reasonable
     attorneys' fees) incurred in connection with the
     defense of any such claims.  In consideration for such
     indemnity, Lessor shall use its reasonable efforts to
     obtain the cooperation of all parties in interest, such
     that any Mortgagee's Lease made pursuant hereto will,
     if possible, be prior to any mortgage or other lien,
     charge or encumbrance on the fee simple interest in the
     Premises, which mortgage, lien, charge or encumbrance
     was junior to this Lease; provided, that Lessor shall
     be reimbursed its costs and any fees incurred in
     connection with such cooperative efforts.  The
     Mortgagee's Lease will, if possible, have the same
     relative priority in time and right as this Lease and
     have the benefit of and vest in the mortgagee all of
     the same rights, title, interest, powers and privileges
     of Lessee.  Concurrently with the execution of the
     Mortgagee's Lease, Lessor shall assign its interest in
     and to any then existing sublease under which Lessee
     has attorned to and been recognized by Lessor and shall
     be reimbursed its costs in so doing.  During the period
     between termination of this Lease and execution of the
     Mortgagee's Lease, Lessor shall not amend or modify the
     subleases or take any action which will adversely
     affect the Premises or give rise to any liens against
     the Premises.

               (iv)  As a condition to and concurrently with
     delivery of the Mortgagee's Lease, the lessee named
     therein shall pay any and all sums which would, at the
     time of the execution thereof, be due under this Lease,
     but for the termination as aforesaid, and shall
     otherwise fully remedy any existing defaults under this
     Lease susceptible of cure by the mortgagee or permitted
     designee, as applicable, and shall pay to Lessor all
     costs and expenses, including, but not limited to, any
     premiums paid or incurred by Lessor in order to
     maintain the insurance coverage required by the terms
     of this Lease and the reasonable attorneys' fees, court
     costs and disbursements incurred by Lessor by reason of
     the actual or deemed rejection of this Lease and/or in
     connection with the preparation, execution and delivery
     of the Mortgagee's Lease.  Any default which cannot be
     cured by such lessee until obtaining possession shall
     be cured by the lessee within a reasonable time after
     obtaining possession.

          12.  Article VIII (Maintenance and Use of
Premises), Section 8(a) shall be amended by changing the
reference to the 1984 published standard for 4-Diamond
rating of the American Automobile Association to the "1994
published standard for 4-Diamond Rating of the American
Automobile Association".

          13.  Article VIII (Maintenance and Use of
Premises), Section 8(c) shall be amended in its entirety to
read as follows:

Lessee shall not use the Premises for realty sales office
(except for temporary realty sales office to sell or lease
realty, apartments and/or condominiums owned by Lessee
and/or any of its partners and located in the Kapalua Resort
Development, and realty, apartments and/or condominiums
located  or to be located on Site 29, whether or not owned
by Lessee or any of its partners) and shops selling items
bearing the Kapalua logo, which is a stylized butterfly with
a pineapple in the center, except as Lessor shall otherwise
approve.  Lessee shall be permitted to conduct commercial
retail operations on the Premises such as retail shops and
stores, provided, that the area used therefore is limited as
provided in Article VIII, Section 8(a) and that Lessee shall
reasonably cooperate with Lessor to provide a tenant mix
which shall be complementary to the retail activities at The
Shops which is the retail facility operated by Lessor on the
adjacent property.

          14.  Article XI (General Provisions), Section 7(a)
shall be amended in its entirely as follows:

          (a)  This Lease and/or the Hotel may be assigned
or transferred, voluntarily or involuntarily, in whole or in
part, by Lessee, without the consent or approval of Lessor,
to a subsidiary or parent corporation or other affiliated
entity of Lessee or to any limited or general partnership or
other entity in which Lessee, its parent company, or any
affiliate or subsidiary company of either Lessee or its
parent company is a general partner and is given and
exercises day-to-day operational control (each such entity
to be hereinafter referred to as the "Controlled Entity"). 
For purposes of this provision, the term "affiliate" or
"affiliated entity" shall mean an entity controlling,
controlled by or under common control with the party in
question.  A sale, assignment or transfer permitted by this
paragraph 7(a) shall not be considered a sale, assignment or
transfer under paragraph 7(b) below.

          15.  Article XI (General Provisions),  Section
7(b) shall be amended by changed the first sentence to read
as follows:

          "If Lessee or any Controlled Entity ("Assignor")
proposes to sell, assign or transfer this Lease and/or the
Hotel other than to a Controlled Entity, Assignor shall give
Lessor written notice stating Assignor's intention to so
sell, assign or transfer this Lease and/or the Hotel and the
price and material terms of payment of the purchase price
Assignor desires to receive in consideration thereof."

          16.  Article XI (General Provisions),  Section
7(c) shall be amended by deleting the word "If" which is the
first word in the first sentence of this section and
substituting the following clause in its place:

          "Subject to Section 7(a) of this Article XI, if"

          17.  Article XII (Special Provisions), Section 2
(Right of First Refusal), is amended in its entirety to read
as follows:

          2.   Right of First Refusal.

               (a)  Intention to Sell.  If Lessor intends to
sell, assign or transfer fee simple title to the Premises
and/or its interest in this Lease, Lessor shall give Lessee
written notice stating Lessor's intention to so sell, assign
or transfer and the price Lessor desires to receive in
consideration thereof, Lessee shall have sixty (60) days
following such notice in which to accept or reject such
price and to enter into a definitive agreement with Lessor
with respect thereto which is mutually acceptable to Lessor
and Lessee and customary for transactions of this type.  If
Lessee fails to accept such price or fails to enter into
such definitive purchase agreement within said sixty (60)
days or rejects such price at any time, Lessor shall be
entitled, at any time after such failure or rejection, to
sell, assign or transfer its fee simple title to the
Premises and/or its interest in this Lease to any third
party, provided that such sale, assignment or transfer shall
(a) be for a purchase price equal to or higher than that
stated in Lessor's notice to Lessee, and (b) provide terms
and conditions which are not materially more favorable to
the purchaser than those terms and conditions offered to
Lessee by Lessor.

          If Lessor desires to sell, assign or transfer its
fee simple title to the Premises and/or its interest in this
Lease for a price less than that stated in Lessor's notice
to Lessee and/or pursuant to other terms and conditions
which are materially more favorable than those offered to
Lessee, Lessor shall give Lessee written notice of such
price and terms and conditions upon which Lessor desires to
consummate the sale, assignment or transfer, and Lessee
shall have forty-five (45) days after such notice to accept
such new price, terms and conditions.  If Lessee fails to
accept such new price, terms and conditions within the
forty-five (45) days or rejects such new price, terms and
conditions, Lessor shall be entitled, at any time after such
failure or rejection, to consummate the sale, assignment or
transfer to any third party.

          (b)  Offer to Purchase.  Subject to Section 2(a),
if Lessor shall receive an offer to purchase its fee simple
title in the Premises and/or its interest in this Lease
which Lessor intends to accept, Lessor shall give Lessee
written notice stating Lessor's intention to so sell, assign
or transfer and all of the terms and conditions of such
offer.  Lessor shall include a copy of such agreement or
offer with such notice to Lessee.  Lessee shall have sixty
(60) days following such notice in which to elect to
purchase the land or interest in the Lease (as the case may
be) on terms identical to those set forth in the notice from
Lessor with the only exception that consummation of Lessee's
purchase from Lessor shall occur on the later of the
sixtieth day following the date of Lessee's acceptance or
the date set forth in Lessor's notice to Lessee. If Lessee
fails to elect to purchase such interest, Lessor shall be
entitled to sell, assign or transfer its fee simple title to
the Premises and/or its interest in this Lease to the
purchaser with whom Lessor's notice to Lessee applied and
upon the terms and conditions set forth in such notice
within ninety (90) days after such failure or rejection.

          (c)  Assignment to Affiliate. For purposes of this
paragraph 2 of Article XII, a sale, assignment or transfer
by Lessor to any parent or subsidiary of Lessor or to any
trust, partnership, corporation or other entity owned or
controlled by Lessor or all of Lessor's stockholders, or any
subsequent sale, assignment or transfer by such subsidiary,
parent or entity owned and controlled by Lessor to its
parent or subsidiary shall not be considered a "sale,
assignment or transfer" giving Lessee any right of first
refusal, but Lessee shall be entitled to the right of first
refusal described herein upon any sale, assignment or
transfer by any such entity.

          18.  Article XII (Special Provisions), Section 5
(a new section) is hereby added to the Lease to read as
follows:

               5.   Future Expansion.  Notwithstanding any
provision of the Ground Lease or the Supplemental Agreement
to the contrary, Lessee hereby agrees to undertake
substantial refurbishment and improvements to the Hotel at a
cost of not less than $7,500,000 during the calendar years
1996 and 1997 which may result in a closure of the Hotel for
a period of up to approximately six (6) months, subject to
force majeure delays.  Lessee may also, in the future,
undertake to expand the Hotel and increase the number of
hotel rooms and the size of some of the facilities. Lessor
encourages such undertakings by Lessee and agrees to
cooperate and assist Lessee in any reasonable manner to
obtain the permits and necessary approval to perform such
improvements, subject to Lessor's approval of the plans and
specifications for such work as are provided for in this
Lease.

          19.  Exhibit A to the Lease is hereby amended by
adding the following to the description of the Land
contained therein, immediately before the phrase "SUBJECT,
HOWEVER, to the following":

          "TOGETHER WITH a nonexclusive easement
          for access over and across all of that
          certain parcel known as Lot 2-A-1-B-4 of
          the Kapalua Development Subdivision, as
          more particularly described in Exhibit 2
          attached hereto and incorporated herein,
          provided that said easement shall
          terminate automatically upon the
          dedication of said parcel to the County
          of Maui or any other governmental entity
          for use as a public roadway, and
          provided further that Lessor shall have
          the right to relocate such easement from
          time to time so long as Lessee's access
          from a public roadway to the Hotel is
          not thereby unreasonably disturbed."

          In connection with the foregoing, the attached
Exhibit 2 is hereby added as Exhibit 2 to the Lease.

          20.  Lessor and Lessee hereby confirm that except
as herein modified, the existing terms of the Lease shall
remain in full force and effect.  Lessor hereby certifies
that as of the date of this Amendment, there is no default
by Lessee (or any prior lessee) in the observing or
performing of any term, covenant, agreement, provision,
condition or limitation contained in the Lease or in any way
relating thereto, or arising out of any other transaction
between Lessor and Lessee (or any prior lessee) thereunder. 
Moreover, rent under the Lease has been paid through the
date hereof, and no rent or other sums payable under the
Lease are owed.  Unless otherwise specified herein, defined
terms shall have the same meanings as in the Lease.

         IN WITNESS WHEREOF. Lessor and Lessee have executed
this Third Amendment of Hotel Ground Lease as of the day and
year first above set forth.


                         MAUI LAND & PINEAPPLE COMPANY, INC.

               
                         By:  /S/ GARY L. GIFFORD           
                         Name:  GARY L. GIFFORD
                         Title:  PRESIDENT



                         By: /S/ DON YOUNG                  
                         Name:   DON YOUNG
                         Title:  EXECUTIVE VICE PRESIDENT

                                                  "Lessor"


                         YCP KAPALUA L.P., a Delaware
                         limited partnership

                         By: YCP Kapalua G.P., a Delaware   
                    corporation, its General Partner

                              By: /S/ EVA WASSERMANN      
                              Name:  EVA WASSERMAN
                              Title: VICE PRESIDENT

                                                  "Lessee"