<PAGE>

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                                              Tierra Del Sol Golf & Country Club
                                                                           Belen
                                                                 Valencia County
                                                                      New Mexico


                                      L E A S E

                             GOLF TRUST OF AMERICA, L.P.
                                       LANDLORD
                                         AND

                                GCR-NEW MEXICO, L.L.C.

                                        TENANT

                               DATED AS OF MAY 29, 1998


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<PAGE>

                                  TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            Page

                                     ARTICLE 1
<S>                                                                        <C>
LEASED PROPERTY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

                                     ARTICLE 2

DEFINITIONS. RULES OF CONSTRUCTION . . . . . . . . . . . . . . . . . . . . . 2
     2.1 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
     2.2 Rules of Construction . . . . . . . . . . . . . . . . . . . . . . .14

                                     ARTICLE 3

TERM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
     3.1 Initial Term. . . . . . . . . . . . . . . . . . . . . . . . . . . .15
     3.2 Extension Options . . . . . . . . . . . . . . . . . . . . . . . . .15
     3.3 Right of First Offer to Lease . . . . . . . . . . . . . . . . . . .16

                                     ARTICLE 4

RENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
     4.1 Rent. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
     4.2 Increase in Initial Base Rent . . . . . . . . . . . . . . . . . . .17
     4.3 Percentage Rent . . . . . . . . . . . . . . . . . . . . . . . . . .17
     4.4 Annual Reconciliation of Percentage Rent. . . . . . . . . . . . . .18
     4.5 Increase in Base Rent Following Conversion Date . . . . . . . . . .18
     4.6 Record-keeping. . . . . . . . . . . . . . . . . . . . . . . . . . .18
     4.7 Additional Charges. . . . . . . . . . . . . . . . . . . . . . . . .19
     4.8 Late Payment of Rent. . . . . . . . . . . . . . . . . . . . . . . .19
     4.9 Net Lease; Capital Replacement Reserve. . . . . . . . . . . . . . .20
     4.10 Allocation of Revenues . . . . . . . . . . . . . . . . . . . . . .20

                                     ARTICLE 5

SECURITY DEPOSIT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20
     5.1 Pledge of Owner's Shares. . . . . . . . . . . . . . . . . . . . . .20
     5 2 Obligation to Withhold Distributions. . . . . . . . . . . . . . . .20
     5 3 Cross-Collateral. . . . . . . . . . . . . . . . . . . . . . . . . .21
     5.4 Landlord's Lien . . . . . . . . . . . . . . . . . . . . . . . . . .21
     5.5 Termination Payment . . . . . . . . . . . . . . . . . . . . . . . .21

                                     ARTICLE 6

IMPOSITIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21
     6.1 Payment of Impositions. . . . . . . . . . . . . . . . . . . . . . .21
     6.2 Information and Reporting . . . . . . . . . . . . . . . . . . . . .22


                                       ii

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     6.3 Prorations. . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
     6.4 Refunds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22
     6.5 Utility Charges . . . . . . . . . . . . . . . . . . . . . . . . . .22
     6.6 Assessment Districts. . . . . . . . . . . . . . . . . . . . . . . .23

                                     ARTICLE 7

TENANT WAIVERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23
     7.1 No Termination, Abatement, Etc .. . . . . . . . . . . . . . . . . .23
     7.2 Condition of the Property . . . . . . . . . . . . . . . . . . . . .24

                                     ARTICLE 8

OWNERSHIP OF TANGIBLE PERSONAL PROPERTY. . . . . . . . . . . . . . . . . . .25
     8.1 Property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25
     8.2 Tenant's Personal Property. . . . . . . . . . . . . . . . . . . . .26
     8.3 Tenant's Obligations. . . . . . . . . . . . . . . . . . . . . . . .26
     8.4 Landlord's Waivers. . . . . . . . . . . . . . . . . . . . . . . . .26

                                     ARTICLE 9

USE OF PROPERTY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26
     9.1 Use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26
     9.2 Specific Prohibited Uses. . . . . . . . . . . . . . . . . . . . . .27
     9.3 Membership Sales. . . . . . . . . . . . . . . . . . . . . . . . . .27
     9.4 Landlord to Grant Easements, Etc. . . . . . . . . . . . . . . . . .28
     9.5 Tenant's Additional Covenants . . . . . . . . . . . . . . . . . . .28
     9.6 Valuation of Remainder Interest in Lease. . . . . . . . . . . . . .29

                                     ARTICLE 10

HAZARDOUS MATERIALS. . . . . . . . . . . . . . . . . . . . . . . . . . . . .29
     10.1 Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . .29
     10.2 Remediation. . . . . . . . . . . . . . . . . . . . . . . . . . . .29
     10.3 Violations; Orders . . . . . . . . . . . . . . . . . . . . . . . .29
     10.4 Permits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29
     10.5 Reports. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29
     10.6 Remediation. . . . . . . . . . . . . . . . . . . . . . . . . . . .30
     10.7 Tenant's Indemnification of Landlord . . . . . . . . . . . . . . .30
     10.8 Survival of Indemnification Obligations. . . . . . . . . . . . . .31
     10.9 Environmental Violations at Expiration
            or Termination of Lease. . . . . . . . . . . . . . . . . . . . .31

                                     ARTICLE 11

MAINTENANCE AND REPAIR . . . . . . . . . . . . . . . . . . . . . . . . . . .32
     11.1 Tenant's Obligations . . . . . . . . . . . . . . . . . . . . . . .32
     11.2 Waiver of Statutory Obligations. . . . . . . . . . . . . . . . . .32
     11.3 Mechanic's Liens . . . . . . . . . . . . . . . . . . . . . . . . .33
     11.4 Surrender of Property. . . . . . . . . . . . . . . . . . . . . . .33


                                        iii

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                                     ARTICLE 12

TENANT IMPROVEMENTS; SUBMITTAL OF BUDGETS;
FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . .33
     12.1 Tenant's Right to Construct. . . . . . . . . . . . . . . . . . . .33
     12.2 Scope of Right . . . . . . . . . . . . . . . . . . . . . . . . . .34
     12.3 Cooperation of Landlord. . . . . . . . . . . . . . . . . . . . . .35
     12.4 Capital Replacement Fund . . . . . . . . . . . . . . . . . . . . .35
     12.5 Rights in Tenant Improvements. . . . . . . . . . . . . . . . . . .36
     12.6 Landlord's Right to Audit Calculation
            of Gross Golf Revenue. . . . . . . . . . . . . . . . . . . . . .36
     12.7 Annual Budget. . . . . . . . . . . . . . . . . . . . . . . . . . .37
     12.8 Financial Statements . . . . . . . . . . . . . . . . . . . . . . .38

                                     ARTICLE 13

LIENS, ENCROACHMENTS AND OTHER TITLE MATTERS . . . . . . . . . . . . . . . .40
     13 1 Liens. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40
     13.2 Encroachments and Other Title Matters. . . . . . . . . . . . . . .41

                                     ARTICLE 14

PERMITTED CONTESTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42
     14.1 Authorization. . . . . . . . . . . . . . . . . . . . . . . . . . .42
     14.2 Indemnification of Landlord. . . . . . . . . . . . . . . . . . . .43

                                     ARTICLE 15

INSURANCE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43
     15.1 General Insurance Requirements . . . . . . . . . . . . . . . . . .43
     15.2 Other Insurance. . . . . . . . . . . . . . . . . . . . . . . . . .45
     15.3 Replacement Cost . . . . . . . . . . . . . . . . . . . . . . . . .45
     15.4 Waiver of Subrogation. . . . . . . . . . . . . . . . . . . . . . .45
     15.5 Form Satisfactory, Etc . . . . . . . . . . . . . . . . . . . . . .45
     15.6 Change in Limits . . . . . . . . . . . . . . . . . . . . . . . . .46
     15.7 Blanket Policy . . . . . . . . . . . . . . . . . . . . . . . . . .46
     15.8 Insurance Proceeds . . . . . . . . . . . . . . . . . . . . . . . .47
     15.9 Disbursement of Proceeds . . . . . . . . . . . . . . . . . . . . .47
     15.10 Excess Proceeds, Deficiency of Proceeds . . . . . . . . . . . . .49
     15.11 Reconstruction Covered by Insurance . . . . . . . . . . . . . . .49
     15.12 Reconstruction Not Covered by Insurance . . . . . . . . . . . . .50
     15.13 No Abatement of Rent. . . . . . . . . . . . . . . . . . . . . . .50
     15.14 Waiver. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50
     15.15 Damage Near End of Term . . . . . . . . . . . . . . . . . . . . .51

                                     ARTICLE 16

CONDEMNATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51
     16.1 Total Taking . . . . . . . . . . . . . . . . . . . . . . . . . . .51
     16.2 Partial Taking . . . . . . . . . . . . . . . . . . . . . . . . . .51
     16.3 Restoration. . . . . . . . . . . . . . . . . . . . . . . . . . . .51


                                       iv

<PAGE>

     16.4 Award-Distribution . . . . . . . . . . . . . . . . . . . . . . . .51
     16.5 Temporary Taking . . . . . . . . . . . . . . . . . . . . . . . . .52

                                     ARTICLE 17

EVENTS OF DEFAULT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52
     17.1 Events of Default. . . . . . . . . . . . . . . . . . . . . . . . .52
     17.2 Payment of Costs . . . . . . . . . . . . . . . . . . . . . . . . .55
     17.3 Certain Remedies . . . . . . . . . . . . . . . . . . . . . . . . .55
     17.4 Damages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55
     17.5 Additional Remedies. . . . . . . . . . . . . . . . . . . . . . . .56
     17.6 Appointment of Receiver. . . . . . . . . . . . . . . . . . . . . .56
     17.7 Waiver . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57
     17.8 Application of Funds . . . . . . . . . . . . . . . . . . . . . . .57
     17.9 Impounds . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57

                                     ARTICLE 18

LANDLORD'S RIGHT TO CURE TENANT'S DEFAULT. . . . . . . . . . . . . . . . . 57

                                     ARTICLE 19

LEGAL REQUIREMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58

                                     ARTICLE 20

HOLDING OVER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58

                                     ARTICLE 21

RISK OF LOSS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59

                                     ARTICLE 22

INDEMNIFICATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59
     22.1 Tenant's Indemnification of Landlord . . . . . . . . . . . . . . .59
     22.2 Landlord's Indemnification of Tenant . . . . . . . . . . . . . . .60
     22.3 Mechanics of Indemnification . . . . . . . . . . . . . . . . . . .60
     22.4 Survival of Indemnification Obligations
            Available Insurance Proceeds . . . . . . . . . . . . . . . . . .61

                                     ARTICLE 23

SUBLETTING AND ASSIGNMENT. . . . . . . . . . . . . . . . . . . . . . . . . .61
     23.1 Prohibition Against Assignment . . . . . . . . . . . . . . . . . .61
     23.2 Subleases. . . . . . . . . . . . . . . . . . . . . . . . . . . . .62
     23.3 Transfers. . . . . . . . . . . . . . . . . . . . . . . . . . . . .63
     23.4 REIT Limitations . . . . . . . . . . . . . . . . . . . . . . . . .64
     23.5 Right of First Offer of Landlord to Acquire Leasehold. . . . . . .64
     23.6 Bankruptcy Limitations . . . . . . . . . . . . . . . . . . . . . .65
     23.7 Management Agreement . . . . . . . . . . . . . . . . . . . . . . .66


                                       v

<PAGE>


                                     ARTICLE 24

OFFICER'S CERTIFICATES AND OTHER STATEMENTS. . . . . . . . . . . . . . . . .67
     24.1 Officer's Certificates . . . . . . . . . . . . . . . . . . . . . .67
     24.2 Environmental Statements . . . . . . . . . . . . . . . . . . . . .67

                                     ARTICLE 25

LANDLORD MORTGAGES . . . . . . . . . . . . . . . . . . . . . . . . . . . . .68
     25.1 Landlord May Grant Liens . . . . . . . . . . . . . . . . . . . . .68
     25.2 Tenant's Non-Disturbance Rights. . . . . . . . . . . . . . . . . .68
     25.3 Facility Mortgage Protection . . . . . . . . . . . . . . . . . . .68

                                     ARTICLE 26

SALE OF FEE INTEREST . . . . . . . . . . . . . . . . . . . . . . . . . . . .69
     26.1 Right of First Offer to Purchase . . . . . . . . . . . . . . . . .69
     26.2 Conveyance by Landlord . . . . . . . . . . . . . . . . . . . . . .69



                                     ARTICLE 27

ARBITRATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70
     27.1 Arbitration. . . . . . . . . . . . . . . . . . . . . . . . . . . .70
     27.2 Arbitration Procedures . . . . . . . . . . . . . . . . . . . . . .70


                                     ARTICLE 28

MISCELLANEOUS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70
     28.1 Landlord's Right to Inspect. . . . . . . . . . . . . . . . . . . .70
     28.2 Breach by Landlord . . . . . . . . . . . . . . . . . . . . . . . .71
     28.3 Competition Between Landlord and Tenant. . . . . . . . . . . . . .71
     28.4 No Waiver. . . . . . . . . . . . . . . . . . . . . . . . . . . . .71
     28.5 Remedies Cumulative. . . . . . . . . . . . . . . . . . . . . . . .71
     28.6 Acceptance of Surrender. . . . . . . . . . . . . . . . . . . . . .72
     28.7 No Merger of Title . . . . . . . . . . . . . . . . . . . . . . . .72
     28.8 Quiet Enjoyment. . . . . . . . . . . . . . . . . . . . . . . . . .72
     28.9 Notices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .72
     28.10 Survival of Claims. . . . . . . . . . . . . . . . . . . . . . . .72
     28.11 Invalidity of Terms or Provisions . . . . . . . . . . . . . . . .73
     28.12 Prohibition Against Usury . . . . . . . . . . . . . . . . . . . .73
     28.13 Amendments to Lease . . . . . . . . . . . . . . . . . . . . . . .73
     28.14 Successors and Assigns. . . . . . . . . . . . . . . . . . . . . .73
     28.15 Titles. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .73
     28.16 Governing Law . . . . . . . . . . . . . . . . . . . . . . . . . .73
     28.17 Memorandum of Lease . . . . . . . . . . . . . . . . . . . . . . .73
     28.18 Attorneys' Fees . . . . . . . . . . . . . . . . . . . . . . . . .74
     28.19 No Third Party Beneficiaries. . . . . . . . . . . . . . . . . . .74
     28.20 Non-Recourse as to Landlord . . . . . . . . . . . . . . . . . . .74


                                       vi

<PAGE>

     28.21 No Relationship . . . . . . . . . . . . . . . . . . . . . . . . .74
     28.22 Reletting . . . . . . . . . . . . . . . . . . . . . . . . . . . .75
     28.23 Year 2000 Problem . . . . . . . . . . . . . . . . . . . . . . . .76
     28.24 New Mexico Law Regarding Indemnification  . . . . . . . . . . . .76
</TABLE>









                                       vii

<PAGE>

Exhibits

Exhibit A - Legal Description of the Land  
Exhibit B - Schedule of Improvements
Exhibit C - Other Leased Property
Exhibit D - Pledge Agreement
Exhibit E - Adjustments to Gross Golf Revenue for Private Clubs
Exhibit F - Calculation of Gross Golf Revenue for the
            Base Year by Quarter








                                       viii

<PAGE>

                                              Tierra Del Sol Golf & Country Club
                                                                           Belen
                                                                 Valencia County
                                                                      New Mexico
                                          
                                       LEASE
                                          
     THIS LEASE (this "Lease"), dated as of May 29, 1998, is entered into by 
and between GOLF TRUST OF AMERICA, L.P., a Delaware limited partnership 
("Landlord"), and GCR-New Mexico, L.L.C., a Delaware limited liability 
company("Tenant").

     THE PARTIES ENTER THIS LEASE on the basis of the following facts,
understandings and intentions:

     A. Pursuant to that certain Contribution and Leaseback Agreement (the
"Agreement") dated as of May 29, 1998 by and between Landlord and Golf Classic
Resorts, L.L.C., a Delaware limited liability company ("Transferor"), Transferor
has or will transfer to Landlord all of its right, title and interest in and to
the Property (as hereafter defined): and

     B. Tenant, desires to lease the Property from Landlord, and Landlord
desires to lease the Property to Tenant, on the terms set forth herein

     NOW THEREFORE, in consideration of the foregoing and the covenants and
agreements to be performed by Tenant and Landlord hereunder, and of other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:

                                      ARTICLE 1
                                   LEASED PROPERTY

     Upon and subject to the terms and conditions set forth in this Lease,
Landlord leases to Tenant and Tenant leases from Landlord all of Landlord's
rights and interest (to the extent acquired from Transferor) in and to the
following real property, improvements, personal property and related rights
(collectively the "Property"):

     (a) the Land;

     (b) the Improvements;

     (c) all rights, privileges, easements and appurtenances to the Land and the
Improvements, if any, including, without limitation, all of Landlord's right,
title and interest, if any, in and to all mineral and water rights and all
easements, rights-of-way and other appurtenances used or connected with the
beneficial use or enjoyment of the Land and the Improvements;


                                       1

<PAGE>

     (d) the Tangible Personal Property; and

     (e) the Intangible Personal Property.

                                      ARTICLE 2
                          DEFINITIONS, RULES OF CONSTRUCTION

     2.1 DEFINITIONS. The following terms shall have the indicated meanings:

     "AAA" has the meaning provided in Section 27.1.

     "ACTUAL PECUNIARY LOSS" has the meaning provided in Section 23.6.

     "ADDITIONAL CHARGES" has the meaning provided in Section 4.7.

     "ADJUSTED NET OPERATING INCOME" shall have the meaning set forth in EXHIBIT
K of the Agreement.

     "ADVISORY ASSOCIATION" means that certain association of lessees operating
golf courses under a lease with Landlord or any Affiliate of Landlord.

     "AFFILIATE" means, as applied to any Person, any other Person directly or
indirectly controlling, controlled by, or under common control with, that
Person.

     "AGREEMENT" has the meaning provided in Recital A.

     "ANNUAL BASE RENT" means the Initial Base Rent, as it may be adjusted
annually as provided in Section 4.2.

     "ANNUAL BUDGET" has the meaning provided in Section 12.7.

     "AUTHORIZATIONS" means all licenses, permits and approvals required by any
governmental or quasi-governmental agency, body or officer for the ownership,
operation and use of the Property or any part thereof.

     "AWARD" means all compensation, sums or anything of value awarded, paid or
received on a total or partial Condemnation.

     "BANKRUPTCY CODE" has the meaning provided in Section 23.6.

     "BASE RENT" means one-twelfth of Annual Rase Rent.

     "BASE RENT ESCALATOR" has the meaning provided in Section 4.2.


                                       2

<PAGE>

     "BASE YEAR" means the twelve (12) month period beginning on January 1,
1997, and ending on December 31, 1997; provided, however, that the Base Year
shall refer to the Fiscal Year immediately preceding the Conversion Date if the
Base Rent is increased as provided in Section 4.5. A quarter-by-quarter
calculation of Gross Golf Revenue in the Base Year is attached hereto as EXHIBIT
F.

     "BUSINESS DAY" means each Monday, Tuesday, Wednesday, Thursday and Friday
which is not a day on which national banks in the City of New York, New York,
are authorized, or obligated, by law or executive order, to close.

     "CAPITAL BUDGET" has the meaning provided in Section 12.7.

     "CAPITAL EXPENDITURES" has the meaning provided in Section 12.4.

     "CAPITAL REPLACEMENT FUND" means the cumulative amount of the Capital
Replacement Reserve accrued by Landlord, together with interest thereon as
provided in Section 12.4, less amounts withdrawn from the Capital Replacement
Fund as provided in Section 12.4.

     "CAPITAL REPLACEMENT RESERVE" means, on an annual basis, the greater of (I)
an amount equal to 3% of each Fiscal Quarter's Gross Golf Revenue, to be accrued
monthly by Landlord as part of the Capital Replacement Fund, as provided in
Section 12.4 hereof, based on the Officer's Certificate, or (ii) Thirty Thousand
Dollars ($30,000.00).

     "CHANGE OF CONTROL" means:

          (a) the issuance and/or sale by Tenant or the sale by any
     stockholder of Tenant of a Controlling interest in Tenant to a Person
     other than to a Person that is an Affiliate of Tenant as of the date
     hereof;

          (b) the sale, conveyance or other transfer of all or
     substantially all of the assets of Tenant or Golf Classic Resorts,
     L.L.C., the owner of all the interests in Tenant,(whether by operation
     of law or otherwise):

          (c) any other transaction, or series of transactions, which
     results in the shareholders, partners or members who control Tenant as
     of the date hereof no longer having Control of Tenant; or

          (d) any transaction pursuant to which Tenant is merged with or
     consolidated into another entity (other than an entity owned and
     Controlled by an Affiliate of 


                                       3

<PAGE>

     Tenant as of the date hereof), and Tenant is not the surviving entity.

          (e)  notwithstanding the foregoing, any transaction pursuant to which
Terence J. Mulvihill ("Mulvihill") exercises his rights under a pledge of the
membership interest in Golf Classic Resorts, L.L.C. is a permitted change of
control, provided that Landlord and Mulvihill mutually agree on an acceptable
manager of the Property.

     Notwithstanding the foregoing, a Change of Control shall not be deemed to
have occurred for purposes of this Lease if the shareholders or partners who
Control Tenant as of the date hereof remain in Control of Tenant through an
agreement or equity interest.

     "CODE" means the Internal Revenue Code of 1986, as the same may be amended
or supplemented, and the rules and regulations promulgated thereunder.

     "COMMENCEMENT DATE" means the date hereof.

     "COMPANY" means Golf Trust of America, Inc. and any subsidiaries thereof,
including, without limitation, GTA LP and GTA GP, and, for purposes of Sections
10.7, 22.1, 22.3 and 22.4, each of their officers, employees, directors, agents
and representatives.

     "CONDEMNATION" means (a) the exercise of any governmental power, whether by
legal proceedings or otherwise, by a Condemnor, and (b) a voluntary sale or
transfer by Landlord to any Condemnor, either under threat of condemnation or
while legal proceedings for condemnation are pending.

     "CONDEMNOR" means any public or quasi-public authority, or private
corporation or individual, having the power of condemnation.

     "CONTINGENT PURCHASE PRICE" shall have the meaning set
forth in EXHIBIT K of the Agreement.

     "CONTROL" means (including, with correlative meanings, the terms
"controlling" and "controlled by"), as applied to any Person, the possession,
directly or indirectly, of the power to direct or cause the direction of the
management and policies of that Person, whether through the ownership of voting
securities, by contract or otherwise.

     "CONVERSION DATE" means the earlier of (i) the date Transferor elects to
receive additional Owner's Shares as a Contingent Purchase Price for the
contribution of the Property, (ii) the date 


                                       4

<PAGE>

on which Transferor elects in writing to waive its right to receive 
additional Owner's Shares, or (iii) the date that is the one hundred fifth 
(105th) day following the end of the fifth (5th) full Fiscal Year of the 
Initial Term.

     "CPI" means the United States Consumer Price Index, All Urban Consumers,
U.S. City Average, All Items (1982-84 = 100).

     "DATE OF TAKING" means the date the Condemnor has the right to possession
of the property being condemned.

     "ENVIRONMENTAL LAWS" means the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et
seq.; the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et
seq.; the Toxic Substances Control Act, 15 U.S.C. Section 2601 et seq.; the
Hazardous Materials Transportation Act, as amended, 49 U.S.C. Section 1801, et
seq.; the Superfund Amendments and Reauthorization Act of 1986, Pub. L. 99-499
and 99-563; the Occupational Safety and Health Act of 1970, as amended, 29
U.S.C. Section 651, et seq.; the Clean Air Act, as amended, 42 U.S.C. Section
7401, et seq.; the Safe Drinking Water Act, as amended, 42 U.S.C. Section 201,
et seq.; the Federal Water Pollution Control Act, as amended, 33 U.S.C. Section
1251, et seq.; and all federal, state and local environmental health and safety
statutes, ordinance, codes, rules, regulations, orders and decrees regulating,
relating to or imposing liability or standards concerning or in connection with
Hazardous Materials.

     "EVENT OF DEFAULT" has the meaning provided in SECTION 17.1.

     "EXPIRATION DATE" means the date that is the last day of the fortieth
(40th) full Fiscal Quarter following the Commencement Date, as such date may be
extended by the Extended Terms.

     "EXTENDED TERM" has the meaning provided in Section 3.2.

     "FACILITY MORTGAGE" means a mortgage, deed of trust or other security
agreement securing any indebtedness or any other Landlord's Encumbrance placed
on the Property in accordance with the provisions of Article 25.

     "FACILITY MORTGAGEE" means the holder or beneficiary of a Facility
Mortgage, if any; provided Landlord has given Tenant notice of the identity and
address of the Person.

     "FISCAL QUARTER" means the three-month periods (or applicable portions
thereof) in any Fiscal Year from January 1 through March 31, April 1 through
June 30, July 1 through September 30 and October 1 through December 31.


                                       5

<PAGE>

     "FISCAL YEAR" means the twelve (12) month period from the first day of 
the first Fiscal Quarter commencing after the Commencement Date to the last 
day of the fourth Fiscal Quarter commencing after the Commencement Date.

     "FIXTURES" means all permanently affixed equipment, machinery, fixtures,
and other items of real and/or personal property, including all components
thereof, now or hereafter located in, on or used in connection with and
permanently affixed to or incorporated into the Property, including all
furnaces, boilers, heaters, electrical equipment, heating, plumbing, lighting,
ventilating, refrigerating, air and water pollution control, waste disposal,
air-cooling and air-conditioning systems and apparatus, sprinkler systems and
fire and theft protection equipment, all of which, to the greatest extent
permitted by law, are hereby deemed by the parties hereto to constitute real
estate, together with all replacements, modifications, alterations and additions
thereto, but specifically excluding all items included within the category of
Tenant's Personal Property and any Tenant Improvements.

     "FULL REPLACEMENT COST" means the actual replacement cost from time to time
of the improvement being insured, including the increased cost of a construction
endorsement, less exclusions provided in the fire insurance policy.

     "GAAP" means generally accepted accounting principles, consistently
applied.

     "GROSS GOLF REVENUE" means all revenues accrued (whether by Tenant or any
subtenants, assignees, concessionaires or licensees) from or by reason of the
operation of the golf operations at the Property calculated in accordance with
GAAP (but excluding reasonable reserves for refunds, allowances and bad debts
applicable to such operations), including, without limitation, (i) revenues from
membership initiation fees (to the extent described in EXHIBIT E attached
hereto), (ii) periodic membership dues, (iii) greens fees, (iv) fees to reserve
a tee time, (v) guest fees, (vi) golf cart rentals, (vii) parking lot fees,
(viii) locker rentals, (ix) fees for golf club storage, (x) fees for the use of
swim, tennis or other facilities, (xi) charges for range balls, range fees or
other fees for golf practice facilities, (xii) fees or other charges paid for
golf or tennis lessons (except where retained by or paid to a USTA or PGA
professional in accordance with historical practice at the Property), (xiii)
fees or other charges for fitness centers, (xiv) forfeited deposits with respect
to any membership application, (xv) transfer fees imposed on any member in
connection with the transfer of any membership interest, (xvi) fees or other
charges paid to Tenant by sponsors of golf tournaments at the Property (unless
the terms under which Tenant is paid by such sponsor do not comply with Section
23.4, in which event the gross revenues received from such sponsor for the


                                       6

<PAGE>

tournament shall be excluded from Gross Golf Revenue and further provided that
Tenant shall use commercially reasonable efforts to structure such payment to
comply with Section 23.4), (xvii) advertising or placement fees paid by vendors
in exchange for exclusive use or name rights at the Property, and (xviii) fees
received in connection with any golf package sponsored by any hotel group,
condominium group, golf association, travel agency, tourist or travel
association or similar payments; provided, however, that Gross Golf Revenue
shall not include:

          (a) Other Revenue;

          (b) The amount of any city, county, state or federal sales,
     admissions, usage, or excise tax on the item included in Gross Golf
     Revenue, which is both added to or incorporated in the selling price
     and paid to the taxing authority by Tenant; and

          (c) Revenues or proceeds from sales or trade-ins of machinery,
     vehicles, trade fixtures or personal property owned by Tenant used in
     connection with Tenant's operation of the Property.

     "GTA GP" means GTA GP, Inc. and any successor thereto.

     "GTA LP" means GTA LP, Inc. and any successor thereto.

     "HAZARDOUS MATERIAL" means any substance, material, waste, gas or
particulate matter which is regulated by any local, state or federal
governmental authority, including but not limited to any material or substance
which is (i) defined as a "hazardous waste", "hazardous material", or
"restricted hazardous waste" or words of similar import under any provision of
any Environmental Law; (ii) petroleum or petroleum products; (iii) asbestos;
(iv) polychlorinated biphenyl; (v) radioactive material; (vi) radon gas; (vii)
designated as a "hazardous substance" pursuant to Section 311 of the Clean Water
Act, 33 U.S.C. Section 1251, et seq. (42 U.S.C. Section 1317); (viii) defined as
a "hazardous waste" pursuant to Section 1004 of the Resource Conservation and
Recovery Act, 42 U.S.C. Section 6901, et seq. (42 U.S.C. Section 6903); or (ix)
defined as a "hazardous substance" pursuant to Section 101 of the Comprehensive
Environmental Response, Compensation and Liability Act, 42 U.S.C. Section 9601,
et seq. (42 U.S.C. Section 9601).

     "IMPARTIAL APPRAISER" means the casualty insurance company which is then
carrying the largest amount of casualty insurance carried on the Property.

     "IMPOSITIONS" means collectively:


                                       7

<PAGE>

          (a) all taxes (including all real and personal property, ad
     valorem, sales and use, single business, gross receipts, transaction
     privilege, rent or similar taxes);

          (b) assessments and levies (including all assessments for public
     improvements or benefits, whether or not commenced or completed prior
     to the date hereof and whether or not to be completed within the
     Term);

          (c) excises;

          (d) fees (including license, permit, inspection, authorization
     and similar fees): and

          (e) all other governmental charges;

in each case whether general or special, ordinary or extraordinary, or foreseen
or unforeseen, of every character in respect of the Property and/or the Rent or
Additional Charges (including all interest and penalties thereon due to any
failure in payment by Tenant), which at any time during or in respect of the
Term hereof may be assessed or imposed on or in respect of or be a lien upon (i)
Landlord or Landlord's interest in the Property; (ii) the Property or any part
thereof or any therefrom or any estate, right, title or interest therein; or
(iii) any operation, use or possession of, or sales from or activity conducted
on or in connection with the Property or the leasing or use of the Property or
any part thereof; provided, however, that Impositions shall not include:

          (aa) any taxes based on net income (whether denominated as an
     income, franchise, capital stock or other tax) imposed on Landlord or
     any other Person other than Tenant;

          (bb) any transfer or net revenue tax of Landlord or any other
     Person other than Tenant: or

          (cc) any tax imposed with respect to any principal or interest on
     any indebtedness on the Property.

     "IMPOUND CHARGES" has the meaning provided in Section 17.9.

     "IMPOUND PAYMENT" has the meaning provided in Section 17.9.

     "IMPROVEMENTS" means the golf course, driving range, putting greens,
clubhouse facilities, snack bar, restaurant, pro shop, buildings, structures,
parking lots, improvements, Fixtures and other items of real estate located on
the Land as more particularly described in Exhibit B attached hereto.


                                       8

<PAGE>

     "INITIAL BASE RENT" means $378,000 per year.

     "INITIAL TERM" means the period of time from the Commencement Date through
the last day of the fortieth (40th) full Fiscal Quarter following the
Commencement Date.

     "INSURANCE REQUIREMENTS" mean all terms of any insurance policy required by
this Lease and all requirements of the issuer of any such policy.

     "INTANGIBLE PERSONAL PROPERTY" means all intangible personal property owned
by Landlord and used solely in connection with the ownership, operation, leasing
or maintenance of the Real Property or the Tangible Personal Property, and any
and all trademarks and copyrights, guarantees, Authorizations, general
intangibles, business records, plans and specifications, surveys, all licenses,
permits and approvals solely with respect to the construction, ownership,
operation or maintenance of the Property. Landlord acknowledges that Tenant has
a right, during the term of the Lease,  to use the trade name "Tierra Del Sol"
in connection with the management and operation of the Property but may not use
such trade name in connection with any other property owned by Tenant or any 
Affiliate of Tenant.

     "LAND" means the land described in Exhibit A attached hereto.

     "LANDLORD" means Golf Trust of America, L.P., and any successor or assignee
permitted in accordance with the terms of the Lease.

     "LANDLORD'S ENCUMBRANCE" means any lien, encumbrance or title retention
agreement upon the Property, or any portion thereof or interest therein, whether
to secure borrowing or other means of financing or refinancing.

     "LEASE" means this Lease, as the same may be amended from time to time.

     "LEASE TERM" means the period from the Commencement Date through and
including the Expiration Date (or the termination date, if earlier terminated
pursuant to the provisions hereof).

     "LEGAL REQUIREMENTS" means all federal, state, county, municipal and other
governmental statutes, laws (including the Americans with Disabilities Act and
any Environmental Laws), rules, orders, regulations, ordinances, judgments,
decrees and injunctions affecting either the Property or the construction, use
or alteration thereof, whether now or hereafter enacted and in force, including
any which may (i) require repairs, modifications, or alterations in or to the
Property; (ii) in any way adversely affect the use and enjoyment thereof, and
all permits, licenses and 


                                       9

<PAGE>

authorizations and regulations relating thereto, and all covenants, 
agreements, restrictions and encumbrances contained in any instruments, 
either of record or known to Tenant (other than encumbrances created by 
Landlord without the consent of Tenant), at any time in force affecting the 
Property; or (iii) require the cleanup or other treatment of any Hazardous 
Material.

     "NET OPERATING INCOME" shall have the meaning set forth in EXHIBIT K of the
Agreement.

     "NON-COMPLYING PARTY" has the meaning provided in Section 27.2.

     "OFFICER'S CERTIFICATE" means a certificate of Tenant signed by an officer
authorized to so sign by the board of directors or by-laws, or if Tenant is a
partnership, by an officer authorized to so sign by the general partners.

     "OPERATING BUDGET" has the meaning provided in Section 12.7

     "OTHER LEASED PROPERTIES" means the property or properties leased or
hereafter leased to Tenant or an Affiliate of Tenant by Landlord or an Affiliate
of Landlord, other than pursuant to this Lease, which as of the date hereof are
the properties listed on Exhibit C attached hereto.

     "OTHER PARCELS" means those certain three (3) parcels of land adjacent to
or near the Land which are more particularly described on the plat of the
Property to be recorded as of the closing.

     "OTHER REVENUE" means all revenue received (whether by Tenant or any
subtenants, assignees, concessionaires or licensees) from or by reason of the
Property relating to (i) the operation of snack bars, restaurants, bars,
catering functions, and banquet operations,(ii) sale of merchandise and
inventory on the Property,  and (iii) photography services.

     "OVERDUE RATE" means, on any date, a rate equal to the Prime Rate plus an
additional five percent (5%) per annum, but in no event greater than the maximum
rate then permitted under applicable law.

     "OWNER'S SHARES" means limited partnership interests in the Partnership.

     "PARTNERSHIP" means Golf Trust of America, L.P., a Delaware limited
partnership.

     "PERCENTAGE RENT" means, for any Fiscal Year during the Lease Term,
thirty-three and one-third percent (33 1/3%) of the positive 


                                       10

<PAGE>

difference, if any, between the current year's Gross Golf Revenue and the 
Gross Golf Revenue for the Base Year, pro rated for any partial periods.

     "PERMITTED ASSIGNEE" means a Person or an Affiliate of a Person meeting one
or more of the following standards:

          (a) an existing lessee under a lease with Landlord or any
     Affiliate of Landlord who is not then in default under its lease;

          (b) any entity affiliated with an entity acquiring from an
     Affiliate of Tenant its resort and related operations located at or
     adjacent to the Property, and provided Landlord has approved such
     assignee in its reasonable discretion, based on, among other things,
     the proposed assignee's reputation and experience in owning, operating
     and managing golf courses similar in type to the Property and the
     proposed assignee's net worth and financial resources; and

          (c) a list of pre-approved assignees prepared by Landlord from
     time to time in consultation with the Advisory Association.

     "PERSON" means and includes natural persons, corporations, limited
partnerships, limited liability companies, general partnerships, joint stock
companies, joint ventures, associations, companies, trusts, banks, trusts
companies, land trusts, business trusts, Indian tribes or other organizations,
whether or not legal entities, and governments and agencies and political
subdivisions thereof.

     "PLEDGE AGREEMENT. means that certain pledge agreement dated as of the date
of this Lease, by and between Transferor and Landlord, in the form attached
hereto as EXHIBIT D.

     "PLEDGED OWNER'S SHARES" means the Owner's Shares pledged pursuant to the
Pledge Agreement.

     "PRIMARY INTENDED USE" means the operation of a resort golf course and
other activities incidental to the operation of a resort golf course.

     "PRIME RATE" means on any date, a rate equal to the annual rate on such
date announced by NationsBank, N.A., or its successor entity, to be its prime
rate or, if the prime rate is discontinued, the base rate for 90-day unsecured
loans to its corporate borrowers of the highest credit standing.


                                       11

<PAGE>

     "PROPERTY" means the Real Property, the Tangible Personal Property and the
Intangible Personal Property

     "REAL PROPERTY" means the Land and the Improvements, and all easements and
appurtenances attached thereto.

     "RENT" means, collectively, the Base Rent and Percentage Rent.

     "STATE" means the State or Commonwealth in which the Property is located.

     "TANGIBLE PERSONAL PROPERTY" means all items of tangible personal property
and fixtures (if any) owned by Landlord and located on or used solely in
connection with the Real Property, including, but not limited to, machinery,
equipment, furniture, furnishings, movable walls or partitions, phone systems,
restaurant equipment, computers or trade fixtures, golf course operation and
maintenance equipment, including mowers, tractors, aerators, sprinklers,
sprinkler and irrigation facilities and equipment, valves or rotors, driving
range equipment, athletic training equipment, office equipment or machines,
antiques or other decorations, furniture, computers or other control systems,
and equipment or machinery of every kind or nature, including all warranties and
guaranties associated therewith, with the exception of golf carts.

     "TENANT" means GCR-New Mexico, L.L.C., a Delaware limited liability company
and any successor thereto, or assignee thereof, as permitted by the terms of
this Lease.

     "TENANT IMPROVEMENTS" has the meaning provided in Section 12.1.

     "TENANT'S PERSONAL PROPERTY" has the meaning provided in Section 8.2.

     "TENANT'S RIGHT OF FIRST OFFER TO LEASE" has the meaning provided in
Section 3.3.

     "TENANT'S RIGHT OF FIRST OFFER TO PURCHASE" has the meaning provided in
Section 26.1.

     "TERM" means, collectively, the Initial Term and any Extended Terms, as the
context may require, unless earlier terminated pursuant to the provisions
hereof.

     "TERMINATION PAYMENT" means an amount calculated on the Expiration Date
(subject to the maximum Termination Payment described in SECTION 5.5) equal to
the positive difference, if any, between one hundred thirteen and one-half
percent (113.5%) of all 


                                       12

<PAGE>

rent due under this Lease and the Net Operating Income for the prior Fiscal 
Year, divided by ten and five tenths percent (10.5%).

     "TRANSFEROR" has the meaning provided in Recital A.

     "TRUSTEE" has the meaning provided in Section 23.6.

     "UNAVOIDABLE DELAYS" means delays due to strikes, lockouts, power failure,
acts of God, governmental restrictions, enemy action, civil commotion, fire,
unavoidable casualty or other causes beyond the control of the party responsible
for performing an obligation hereunder, PROVIDED THAT lack of funds shall not be
deemed a cause beyond the control of either party hereto unless such lack of
funds is caused by the failure of the other party hereto to perform any
obligations of such party under this Lease.

     "UNSUITABLE FOR ITS PRIMARY INTENDED USE" means a state of condition of the
Property such that in the good faith judgment of Landlord, reasonably exercised,
the Property cannot be operated on a commercially practicable basis for its
Primary Intended Use.

     2.2 RULES OF CONSTRUCTION. The following rules shall apply to the
construction and interpretation of this Lease:

          (a) Singular words shall connote the plural number as well as the
     singular and vice versa, and the masculine shall include the feminine
     and the neuter.

          (b) All references herein to particular articles, sections,
     subsections, clauses or exhibits are references to articles, sections,
     subsections, clauses or exhibits of this Lease.

          (c) The table of contents and headings contained herein are
     solely for convenience of reference and shall not constitute a part of
     this Lease nor shall they affect its meaning, construction or effect.

          (d) "Including" and variants thereof shall be deemed to mean
     "including without limitation."

          (e) All accounting terms not otherwise defined herein have the
     meanings assigned to them in accordance with generally accepted
     accounting principles then in effect.

          (f) Each party hereto and its counsel have reviewed and revised
     (or requested revisions of) this Lease and have participated in the
     preparation of this Lease, and therefore any usual rules of
     construction requiring that ambiguities are to be resolved against a
     particular party 


                                       13

<PAGE>

shall not be applicable in the construction and interpretation of this Lease 
or any exhibits hereto.

                                      ARTICLE 3
                                         TERM

     3.1 INITIAL TERM. The Initial Term shall commence on the Commencement Date
and shall terminate on the last day of the fortieth (40th) full Fiscal Quarter
following the Commencement Date.

     3.2 EXTENSION OPTIONS. Landlord grants Tenant the right to extend the
Initial Term of this Lease (or any permitted assignee) six (6) consecutive times
for a period of five (5) years each (each such extension, an "Extended Term").
Tenant may exercise its option for an Extended Term solely by giving written
notice at least one hundred eighty (180) days prior to the termination of the
then-current term. Tenant shall be entitled to exercise these options only if at
the time of the giving of such notice, Tenant is then the lessee of the Property
pursuant to this Lease, and at the time of the commencement of the applicable
Term or Extended Term no Event of Default shall then exist. During the Extended
Term, all of the terms and conditions of this Lease shall remain in full force
and effect, as the same may be amended, supplemented
or modified.

     3.3 RIGHT OF FIRST OFFER TO LEASE. Upon the expiration of the Lease Term
and provided that Tenant has exercised each Extended Term and no Event of
Default then exists beyond any applicable notice and cure period, Tenant shall
have a right of first offer ("Tenant's Right of First Offer to Lease") to lease
the Property upon the same terms and conditions as Landlord, at its election,
intends to offer to lease the Property to a third party. Tenant shall be
entitled to exercise Tenant's Right of First Offer to Lease only if at the time
of the giving of such notice and at the time of the commencement of the
applicable term no Event of Default shall then exist and only if Landlord elects
to lease the Property at the expiration of the Lease Term. Not more than nine
(9) months and not less than three (3) months prior to the expiration of the
Lease Term, Landlord shall, if applicable, give Tenant written notice of its
intent to lease the Property and shall indicate the terms and conditions upon
which Landlord intends to lease the Property. Tenant shall thereafter have a
period of thirty (30) days to elect by unequivocal written notice to Landlord to
lease the Property on the same terms and conditions as Landlord intends to offer
to a third party; provided prior to Tenant's acceptance Landlord shall retain
the right to elect not to lease the Property by giving Tenant written notice
thereof. If Tenant elects not to lease the Property, then Landlord shall be free
to lease the Property to a third party. However, if the Base Rent for such
proposed lease is reduced by five percent (5%) or more as compared 


                                       14

<PAGE>

to the Base Rent included in the lease that Tenant rejected, then Landlord 
shall again offer Tenant the right to acquire the Property upon the same 
terms and conditions, provided that Tenant shall have only fifteen (15) days 
to accept such offer.

                                      ARTICLE 4
                                         RENT

     4.1 RENT. Tenant will pay to Landlord, in lawful money of the United States
of America, Rent during the Initial Term or any Extended Term. Payments of Base
Rent shall be paid monthly, on the twenty-fifth (25th) day of each month in
arrears, at Landlord's address set forth in Section 28.9 or at such other place
or to such other Person as Landlord from time to time may designate in writing.
The first monthly installment shall be prorated as to any partial month. If any
payment owing hereunder shall otherwise be due on a day that is not a Business
Day, such payment shall be due on the next succeeding Business Day. Tenant shall
receive a credit against Rent (or be paid directly, at Landlord's option) for
any operating expense credits or operating revenues credited to Landlord
pursuant to the Agreement which are applicable to any period in the Lease Term
(E.G., credit for real property taxes, membership dues, sublease rents, etc.)
and conversely Tenant shall reimburse Landlord for any operating expenses paid
for by Landlord pursuant to the Agreement which are the responsibility of Tenant
hereunder.

     4.2 INCREASE IN INITIAL BASE RENT. Beginning on the date (the "Adjustment
Date") that is the first day of the first Fiscal Quarter commencing after the
one (1) year anniversary of the Commencement Date, and on each Adjustment Date
thereafter through and including the fourth (4th) Adjustment Date, the Annual
Base Rent will increase by the lesser of (i) three percent (3%) of the Annual
Base Rent payable for the immediately preceding year, or (ii) two hundred
percent (200%) of the change in CPI from the immediately preceding fiscal year
(the "Base Rent Escalator"); provided the July 1, 1999 increase shall be pro
rated for the number of days in the Lease Term in the second quarter of 1998
divided by 365 and multiplied by the applicable Base Rent Escalator. In
addition, if the Annual Base Rent is increased as provided in Section 4.5, then
the Base Rent Escalator shall continue to apply to each of the five (5) years
following such increase, with the increase effective on the anniversary of the
increase in Base Rent as provided in Section 4.5 in lieu of increases on January
of each year.

     4.3 PERCENTAGE RENT. In addition to Base Rent, Tenant shall pay Percentage
Rent as provided herein. Beginning in the first year of the Initial Term and
continuing for the Initial Term and any Extended Term, Tenant shall calculate
the Gross Golf Revenue for each Fiscal Quarter (or shorter period, if
applicable) within twenty (20) days of the end of such Fiscal Quarter (or
shorter



                                       15

<PAGE>



period, if applicable) and submit such calculation in writing to Landlord by 
way of an Officer's Certificate. If the Gross Golf Revenue for that Fiscal 
Quarter (or shorter period, if applicable) is greater than the Gross Golf 
Revenue for the same Fiscal Quarter (or shorter period, if applicable) in the 
Base Year (and, following the Fiscal Quarter ending March 31, on a 
year-to-date basis), then Tenant shall pay to Landlord the Percentage Rent 
upon submittal of the Officer's Certificate. The Percentage Rent payable in 
any period in any Fiscal Year shall be adjusted to reflect the Percentage 
Rent paid on a year-to-date cumulative basis for the Fiscal Year (pro rated 
for any partial periods) and the limits set forth in the next two sentences 
on a pro rated basis. The increase in Rent resulting from the payment of 
Percentage Rent (together with any increase in Base Rent pursuant to Section 
4.2) payable, if any, during each of the first five (5) full Fiscal Years of 
the Initial Term shall be limited to five percent (5%) of the Rent payable 
for the prior Fiscal Year. Tenant shall receive a credit against the payment 
of Percentage Rent in an amount equal to the increase in the Base Rent over 
the Initial Base Rent.

     4.4 ANNUAL RECONCILIATION OF PERCENTAGE RENT. Within sixty (60) days after
the end of each Fiscal Year, or after the expiration or termination of this
Lease, Tenant shall deliver to Landlord an Officer's Certificate setting forth
(i) the Gross Golf Revenue for the Fiscal Year just ended, and (ii) a comparison
of the amount of the Percentage Rent actually paid during such Fiscal Year
versus the amount of Percentage Rent actually owing on the basis of the annual
calculation of the Gross Golf Revenue. If the Percentage Rent for such Fiscal
Year exceeds the sum of the quarterly payments of Percentage Rent previously
paid by Tenant, Tenant shall pay such deficiency to Landlord along with such
Officer's Certificate. If the Percentage Rent for such Fiscal Year is less than
the amount of Percentage Rent previously paid by Tenant, Landlord shall, at
Landlord's option, either (i) remit to Tenant its check in an amount equal to
such difference (and agrees to do so, if applicable, after the expiration or
termination of this Lease), or (ii) grant Tenant a credit against the payment of
Rent next coming due. Landlord shall have the right to audit all of Tenant's
business operations at the Property so as to determine the calculation of
Percentage Rent as provided in Section 12.6.

     4.5 INCREASE IN BASE RENT FOLLOWING CONVERSION DATE. For the Fiscal Year in
which the Conversion Date occurs only as a result of the election by Transferor
to receive additional Owner's Shares in the Partnership as a Contingent Purchase
Price for the contribution of the Property, the Annual Base Rent shall be
increased, effective as of the date the additional Owner's Shares are issued to
the Transferor, to an amount equal to the Adjusted Net Operating Income.


                                       16

<PAGE>

     4.6 RECORD-KEEPING. Tenant shall utilize an accounting system for the
Property in accordance with its usual and customary practices and in accordance
with GAAP approved by Landlord, which will accurately record all Gross Golf
Revenue. Tenant shall retain all accounting records for each Fiscal Year
conforming to such accounting system until at least five (5) years after the
expiration of such Fiscal Year.

     4.7 ADDITIONAL CHARGES. In addition to the Base Rent and Percentage Rent,
(a) Tenant shall also pay and discharge when due and payable all other amounts,
liabilities, obligations and Impositions which Tenant assumes or agrees to pay
under this Lease, and (b) in the event of any failure on the part of Tenant to
pay any of those items referred to in clause (a) above, Tenant shall also pay
and discharge every fine, penalty, interest and cost which may be added for
non-payment or late payment of such items (the items referred to in clauses (a)
and (b) above being referred to herein collectively as the "Additional
Charges"). Except as otherwise provided in this Lease, all Additional Charges
shall become due and payable at the earlier of (i) thirty (30) days after either
Landlord or the applicable third party delivery of an invoice to Tenant, or (ii)
the date of delinquency with respect to Impositions.

     4.8 LATE PAYMENT OF RENT. Tenant hereby acknowledges that late payment by
Tenant to Landlord of Base Rent, Percentage Rent or Additional Charges will
cause Landlord to incur costs not contemplated under the terms of this Lease,
the exact amount of which is presently anticipated to be extremely difficult to
ascertain. Such costs may include processing and accounting charges and late
charges which may be imposed on Landlord by the terms of any mortgage or deed of
trust covering the Property and other expenses of a similar or dissimilar
nature. Accordingly, if any installment of Base Rent, Percentage Rent or
Additional Charges (but only as to those Additional Charges which are payable
directly to Landlord) shall not be paid within ten (10) days after the date such
payment is due, Tenant will pay Landlord on demand, as Additional Charges, a
late charge equal to five percent (5%) of such installment. The parties agree
that this late charge represents a fair and reasonable estimate of the costs
that Landlord will incur by reason of late payment by Tenant and is not a
penalty. In addition, if any installment of Base Rent, Percentage Rent or
Additional Charges (but only as to those Additional Charges which are payable
directly to Landlord) shall not be paid within five (5) days after the due date
with respect to Base Rent or Percentage Rent or delivery of an invoice to Tenant
with respect to the Additional Charge, the amount unpaid shall bear interest,
from such due date to the date of payment thereof, computed at the Overdue Rate
on the amount of such installment, and Tenant will pay such interest to Landlord
as Additional Charges. The acceptance of any late charge or interest shall not
constitute a waiver of, nor 


                                       17

<PAGE>

excuse or cure, any default under this Lease, nor prevent Landlord from 
exercising any other rights and remedies available to Landlord.

     4.9 NET LEASE; CAPITAL REPLACEMENT RESERVE. This Lease shall be a triple
net lease and Rent shall be payable to Landlord without notice or demand and
without set-off, counterclaim, recoupment, abatement, suspension, determent,
deduction or defense, except as expressly provided herein, so that this Lease
shall yield to Landlord the full amount of the installments of Base Rent,
Percentage Rent and Additional Charges throughout the Term. Without limiting the
foregoing, Tenant shall pay to Landlord on a monthly basis along with Base Rent,
as additional rent, an amount equal to one-twelfth (1/12) of the Capital
Replacement Reserve. Such amounts shall be subject to reconciliation at the end
of each Fiscal Quarter and at the end of each Fiscal Year.

     4.10 ALLOCATION OF REVENUES. In the event that individuals or groups
purchase for a single price items which are both included and excluded from
Gross Golf Revenue (E.G., green fees and dinner), then Tenant agrees that
revenues shall be allocated to Gross Golf Revenue in a reasonable manner
consistent with the historical allocation of such revenues.

                                      ARTICLE 5
                                   SECURITY DEPOSIT

     5.1 PLEDGE OF OWNER'S SHARES. On or prior to the Commencement Date, Tenant
shall cause the Pledge Agreement to be executed by Transferor for the benefit of
Landlord. Landlord acknowledges that Tenant has provided a junior pledge of the
Pledged Owner's shares to Terence J. Mulvihill pursuant to a Junior Securities
Pledge Agreement dated even date herewith, the form of such Pledge Agreement
being approved by Landlord. Such junior pledge of the Pledged Owner's Shares to
Terence J. Mulvihill shall be deeply subordinated to Landlord's interest in the
Pledged Owner Shares until such time as the Pledged Owner's Shares are released
by Landlord pursuant to the terms of Exhibit D-1 to the Pledge Agreement.

     5.2 OBLIGATION TO WITHHOLD DISTRIBUTIONS. Notwithstanding the above
provisions, if the Net Operating Income for the Property falls below the
coverage ratio set forth in Section 2(a) of EXHIBIT D-1 to the Pledge Agreement,
at any time following the release of any Pledged Owner's Shares (or security
deposit held by Landlord in lieu thereof), then Tenant shall thereafter retain,
and not make cash distributions (except as may be necessary to pay any
applicable taxes) to its shareholders, partners or members, as applicable, until
such time as Tenant has accumulated six (6) months of Base Rent at the then
current level. Cash distributions may be made at such time as Tenant shall have
again satisfied such 


                                       18
<PAGE>

coverage ratios for two (2) consecutive Fiscal Years. Tenant shall provide 
Landlord with such documentation, including Officer's Certificates and 
financial statements, within forty-five (45) days after the end of each 
Fiscal Quarter as are necessary to establish Tenant's compliance with the 
foregoing requirements.

     5.3 CROSS-COLLATERAL. The Pledged Owner's Shares provided by Transferor
shall also secure Tenant's or Tenant's Affiliates obligations under each of the
leases for the Other Leased Properties.

     5.4 LANDLORD'S LIEN. To the fullest extent permitted by applicable law,
Landlord is granted a lien and security interest on all of Tenant's personal
property now or hereafter located on the Property, and such lien and security
interest shall remain attached to Tenant's personal property until payment in
full of all Rent and satisfaction of all of Tenant's obligations hereunder;
provided, however, Landlord shall subordinate its lien and security interest
only to that of any third party lender or seller which finances Tenant's
personal property, the terms and conditions of such subordination to be
satisfactory to Landlord in its reasonable discretion. Tenant shall, upon the
request of Landlord, execute such financing statements or other documents or
instruments reasonably requested by Landlord to perfect the lien and security
interests herein granted.

     5.5 TERMINATION PAYMENT. On the Expiration Date, unless each option for an
Extended Term is exercised, Tenant shall pay to Landlord the Termination
Payment, if any, provided the maximum Termination Payment shall equal the
amounts in the Security Fund (as defined in the Pledge Agreement) then held by
Landlord and shall be payable solely from the proceeds thereof. For purposes of
calculating the Termination Payment, the Owner's Shares shall have a value
deemed to equal the average closing share price of common stock of Golf Trust of
America, Inc. for the five (5) day period prior to the Expiration Date.

                                      ARTICLE 6
                                     IMPOSITIONS

     6.1 PAYMENT OF IMPOSITIONS. Subject to Section 6.3 and Section 17.9, Tenant
will pay, or cause to be paid, all Impositions before any fine, penalty,
interest or cost may be added for non-payment, such payments to be made directly
to the taxing authorities where feasible. All payments of Impositions shall be
subject to Tenant's right of contest pursuant to the provisions of Article 14.
Upon request, Tenant shall promptly furnish to Landlord copies of official
receipts, if available, or other satisfactory proof evidencing such payments,
such as canceled checks


                                       19

<PAGE>

     6.2 INFORMATION AND REPORTING. Landlord shall give prompt notice to Tenant
of all Impositions payable by Tenant hereunder of which Landlord at any time has
actual knowledge, but Landlord's failure to give any such notice shall in no way
diminish Tenant's obligations hereunder to pay such Impositions. Landlord and
Tenant shall, upon reasonable request of the other, provide such data as is
maintained by the party to whom the request is made with respect to the Property
as may be necessary to prepare any required returns and reports. In the event
any applicable governmental authorities classify any property covered by this
Lease as personal property, Tenant shall file all personal property tax returns
in such jurisdictions where it must legally so file. Each party, to the extent
it possesses the same, will provide the other party, upon reasonable request,
with cost and depreciation records necessary for filing returns for any property
so classified as personal property.

     6.3 PRORATIONS. Impositions imposed in respect of the tax-fiscal period
during which the Lease commences or terminates shall be adjusted and prorated
between Landlord and Tenant, whether or not such Imposition is imposed before or
after such commencement or termination, and Tenant's and Landlord's obligation
to pay its prorated share thereof shall survive such termination. If any
Imposition may, at the option of the taxpayer, lawfully be paid in installments
(whether or not interest shall accrue on the unpaid balance of such Imposition),
Tenant may elect to pay in installments, in which event Tenant shall pay all
installments (and any accrued interest on the unpaid balance of the Imposition)
that are due during the Term hereof before any fine, penalty, premium, further
interest or cost may be added thereto.

     6.4 REFUNDS. If any refund shall be due from any taxing authority in
respect of any Imposition paid by Tenant, the same shall be paid over to or
retained by Tenant if no Event of Default shall have occurred hereunder and be
continuing. Any such funds retained by Landlord due to an Event of Default shall
be applied as provided in Article 17. This obligation shall survive the
expiration or termination of the Lease provided no Event of Default had occurred
and was continuing at the time of the expiration or termination of the Lease.

     6.5 UTILITY CHARGES. Tenant shall pay or cause to be paid prior to
delinquency charges for all utilities and services, including, without
limitation, electricity, telephone, trash disposal, gas, oil, water, sewer,
communication and all other utilities used in the Property during the Term.

     6.6 ASSESSMENT DISTRICTS. Landlord shall not voluntarily consent to or
agree in writing to (i) any special assessment or (ii) the inclusion of any
material portion of the Leased Property into a special assessment district or
other taxing jurisdiction unless Tenant shall have consented thereto, which
consent shall not 


                                       20

<PAGE>

be unreasonably withheld or unless Landlord agrees to pay the cost thereof.

                                      ARTICLE 7
                                    TENANT WAIVERS

     7.1 NO TERMINATION ABATEMENT, ETC. Subject to Article 21 and except as
otherwise specifically provided in this Lease, and except for those causes
resulting from the willful misconduct or gross negligence of Landlord or any
person whose claim arose under Landlord, (i) Tenant, to the extent permitted by
law, shall remain bound by this Lease in accordance with its terms and shall
neither take any action without the consent of Landlord to modify, surrender or
terminate the same, nor be entitled to any abatement, deduction, deferment or
reduction of Rent, or set-off against the Rent by reason of, and (ii) the
respective obligations of Landlord and Tenant shall not be otherwise affected by
reason of:

          (a) any damage to, or destruction of, any Property or any portion
     thereof from whatever cause or any taking of the Property or any
     portion thereof;

          (b) the lawful or unlawful prohibition of, or restriction upon,
     Tenant's use of the Property, or any portion thereof, the interference
     with such use by any Person, or by reason of eviction by paramount
     title;

          (c) any claim which Tenant has or might have against Landlord or
     by reason of any default or breach of any warranty by Landlord under
     this Lease or any other agreement between Landlord and Tenant, or to
     which Landlord and Tenant are parties;

          (d) any bankruptcy, insolvency, reorganization, composition,
     readjustment, liquidation, dissolution, winding up or other
     proceedings affecting Landlord or any assignee or transferee of
     Landlord; or

          (e) for any other cause whether similar or dissimilar to any of
     the foregoing other than a discharge of Tenant from any such
     obligations as a matter of law.

     Tenant hereby specifically waives all rights, arising from any occurrence
whatsoever, which may now or hereafter be conferred upon it by law (i) to
modify, surrender or terminate this Lease or quit or surrender the Property or
any portion thereof, or (ii) to entitle Tenant to any abatement, reduction,
suspension or deferment of the Rent or other sums payable by Tenant hereunder,
except as otherwise specifically provided in this Lease. The obligations of
Landlord and Tenant hereunder shall be separate and independent covenants and
agreements and the Rent and all other sums payable by 


                                       21

<PAGE>

Tenant hereunder shall continue to be payable in all events unless the 
obligations to pay the same shall be terminated pursuant to the express 
provisions of this Lease or by termination of this Lease other than by reason 
of an Event of Default.

     7.2 CONDITION OF THE PROPERTY. Tenant acknowledges receipt and delivery of
possession of the Property and that Tenant has examined and otherwise has
knowledge of the condition of the Property prior to the execution and delivery
of this Lease and has found the same to be in good order and repair and
satisfactory for its purposes hereunder. Regardless, however of any inspection
made by Tenant of the Property and whether or not any patent or latent defect or
condition was revealed or discovered thereby, Tenant is leasing the Property "as
is" in its present condition. Tenant waives and releases any claim or cause of
action against Landlord with respect to the condition of the Property including
any defects or adverse conditions latent or patent, matured or unmatured, known
or unknown by Tenant or Landlord as of the date hereof. TENANT ACKNOWLEDGES THAT
LANDLORD (WHETHER ACTING AS LANDLORD HEREUNDER OR IN ANY OTHER CAPACITY) HAS NOT
MADE AND WILL NOT MAKE, NOR SHALL LANDLORD BE DEEMED TO HAVE MADE, ANY WARRANTY
OR REPRESENTATION, EXPRESS OR IMPLIED, WITH RESPECT TO THE PROPERTY, INCLUDING
ANY WARRANTY OR REPRESENTATION AS TO (i) ITS FITNESS, DESIGN OR CONDITION FOR
ANY PARTICULAR USE OR PURPOSE, (ii) THE QUALITY OF THE MATERIAL OR WORKMANSHIP
THEREIN, (iii) THE EXISTENCE OF ANY DEFECT, LATENT OR PATENT, (iv) LANDLORD'S
TITLE THERETO, (v) VALUE, (vi) COMPLIANCE WITH SPECIFICATIONS, (vii) LOCATION,
(viii) USE, (ix) CONDITION, (x) MERCHANTABILITY, (xi) QUALITY, (xii)
DESCRIPTION, (xiii) DURABILITY, (xiv) OPERATION, (xv) THE EXISTENCE OF ANY 
MATERIAL OR (xvi) COMPLIANCE OF THE PROPERTY WITH ANY LAW (INCLUDING
ENVIRONMENTAL LAWS) OR LEGAL REQUIREMENTS. TENANT ACKNOWLEDGES THAT THE PROPERTY
IS OF ITS SELECTION AND TO ITS SPECIFICATIONS AND THAT THE PROPERTY HAS BEEN
INSPECTED BY TENANT AND IS SATISFACTORY TO IT. IN THE EVENT OF ANY DEFECT OR
DEFICIENCY IN THE PROPERTY OF ANY NATURE, WHETHER LATENT OR PATENT, AS BETWEEN
LANDLORD AND TENANT, LANDLORD SHALL NOT HAVE ANY RESPONSIBILITY OR LIABILITY
WITH RESPECT THERETO OR FOR ANY INCIDENTAL OR CONSEQUENTIAL DAMAGES (INCLUDING
STRICT LIABILITY IN TORT). THE PROVISIONS OF THIS SECTION 7.2 HAVE BEEN
NEGOTIATED AND REVIEWED BY TENANT'S LEGAL COUNSEL, AND ARE INTENDED TO BE A
COMPLETE EXCLUSION AND NEGATION OF ANY WARRANTIES BY LANDLORD, EXPRESS OR
IMPLIED, WITH RESPECT TO THE PROPERTY, ARISING PURSUANT TO THE UNIFORM
COMMERCIAL CODE OR ANY OTHER LAW NOW OR HEREAFTER IN EFFECT OR ARISING
OTHERWISE.

     Tenant represents to Landlord that Tenant has examined the title to the
Property prior to the execution and delivery of this Lease and has found the
same to be satisfactory for the purposes contemplated hereby. Tenant
acknowledges that (A) Tenant or an Affiliate of Tenant has previously operated
the Property and has knowledge of its condition which is superior to that of
Landlord, (B) fee simple title, except where the Property is held under a 


                                       22

<PAGE>

ground lease, (both legal and equitable) is in Landlord and that Tenant has 
only the leasehold right of possession and use of the Property as provided 
herein, (C) to Tenant's knowledge the Improvements conform to all material 
Legal Requirements and all material Insurance Requirements, (D) all easements 
necessary or appropriate for the use or operation of the Property have been 
obtained, provided, however, that Landlord and Tenant agree to cooperate with 
each other in the creation of appropriate vehicular and pedestrian access, 
ingress, egress, utilities and maintenance easements related to the Other 
Parcels,(E) all contractors and subcontractors retained by Tenant who have 
performed work on or supplied materials to the Property have been fully paid, 
and all materials to the Property have been fully paid for, (F) the 
Improvements constructed by Tenant or any Affiliate of Tenant have been 
completed in all material respects in a workmanlike manner of first class 
quality, and (G) all equipment necessary or appropriate for the use or 
operation of the Property has been installed and is presently operative in 
all material respects.

                                      ARTICLE 8
                       OWNERSHIP OF TANGIBLE PERSONAL PROPERTY

     8.1 PROPERTY. Tenant acknowledges that (i) the Property has been
transferred to Landlord and leased to Tenant, (ii) the Property is the property
of Landlord and (iii) that Tenant has only the right to the use of such Property
during the Term of and upon the terms and conditions of this Lease.

     8.2 TENANT'S PERSONAL PROPERTY. Tenant shall maintain all of the Property,
whether initially included in the Lease or thereafter acquired by Landlord or
Tenant, in good condition and repair, normal wear and tear excepted. Upon the
loss, destruction or obsolescence of any Tangible Personal Property, Tenant
shall replace such property with replacements of the same type and quality as
initially in place, which such property will be owned by Tenant except to the
extent acquired with funds from the Capital Replacement Fund ("Tenant's Personal
Property"). Upon the expiration or sooner termination of this Lease, the
Tenant's Personal Property shall transfer to Landlord without requirement of any
bill of sale or assignment; provided Landlord, at its election, may require
Tenant to execute such documentation as Landlord may require to evidence such
transfer. Tenant shall not remove any Tangible Personal Property from the
Property upon termination of the Lease. If any of such Tangible Personal
Property is stored away from the Property, Tenant will provide Landlord with
proper access to the storage facility.

     8.3 TENANT'S OBLIGATIONS. Tenant shall provide and maintain, or cause to be
provided and maintained, during the entire term of the Lease, all Tangible
Personal Property, as well as merchandise for sale to the public, and food and
beverage, as shall be 


                                       23

<PAGE>

necessary in order to operate the Property in compliance with (a) all 
applicable Legal Requirements, (b) customary practices in the golf industry, 
(c) past practices of the Transferor, and (d) such other reasonable 
requirements imposed by Landlord from time to time.

     8.4 LANDLORD'S WAIVERS. Any lessor of Tenant's Personal Property may, upon
notice to Landlord and during reasonable hours, enter the Property and take
possession of any of Tenant's Personal Property without liability for trespass
or conversion upon a default by Tenant, provided that such lessor provide
Landlord with the opportunity to cure the defaults of Tenant on terms and
conditions satisfactory to such lessor and Landlord.

                                      ARTICLE 9
                                   USE OF PROPERTY

     9.1 USE. After the Commencement Date and during the Term, Tenant shall use
or cause to be used the Property and the improvements thereon for its Primary
Intended Use. Tenant shall not use the Property or any portion thereof for any
other use without the prior written consent of Landlord, in Landlord's absolute
discretion. No use shall be made or permitted to be made of the Property, and no
acts shall be done, which will cause the cancellation of any insurance policy
covering the Property or any part thereof, nor shall Tenant sell or otherwise
provide to patrons, or permit to be kept, used or sold in or about the Property
any article which may be prohibited by law or by the standard form of fire
insurance policies, or any other insurance policies required to be carried
hereunder, or fire underwriters regulations. Tenant shall, at its sole cost,
comply with all of the requirements pertaining to the Property or other
improvements of any insurance board, association, organization or company
necessary for the maintenance of insurance, as herein provided, covering the
Property and Tenant's Personal Property.

     9.2 SPECIFIC PROHIBITED USES. Tenant shall not use or occupy or permit the
Property to be used or occupied, nor do or permit anything to be done in or on
the Property, in a manner which would (i) violate or fail to comply with any
law, rule or regulation or Legal Requirement, (ii) subject to Article 12, cause
structural injury to any of the Improvements or (iii) constitute a public or
private nuisance or waste. Tenant shall not allow any Hazardous Material to be
located in, on or under the Property, or any adjacent property, or incorporated
in the Property or any improvements thereon except in compliance with applicable
law (including any Environmental Laws). Tenant shall not allow the Property to
be used as a landfill or a waste disposal site, or a manufacturing, distribution
or disposal facility for any Hazardous Materials. Tenant shall neither suffer
nor permit the Property or any portion thereof, including Tenant's Personal
Property, to be 


                                       24

<PAGE>

used in such a manner as (i) might reasonably tend to impair Landlord's title 
thereto or to any portion thereof, or (ii) may reasonably make possible a 
claim or claims of adverse usage or adverse possession by the public, as 
such, or of implied dedication of the Property or any portion thereof, or 
(iii) is in material violation of any applicable Environmental Law.

     9.3 MEMBERSHIP SALES. Tenant shall not sell and/or classify or reclassify
memberships, or set initiation fees, dues and other charges or materially
increase or decrease the number of memberships available at the Property, except
as follows:

          (a) in accordance with Transferor's past practice, as reasonably
     approved by Landlord, or

          (b) membership plans and fees proposed by Tenant and approved by
     Landlord, in Landlord's reasonable discretion.

     9.4 LANDLORD TO GRANT EASEMENTS, ETC. Landlord shall, from time to time so
long as no Event of Default has occurred and is continuing, at the request of
Tenant and at Tenant's cost and expense (but subject to the approval of
Landlord, which approval shall not be unreasonably withheld or delayed)
including without limitation in connection with the sale of the Other Parcels as
described in Section 7.2: (i) grant easements and other rights in the nature of
easements; (ii) release existing easements or other rights in the nature of
easements which are for the benefit of the Property; (iii) dedicate or transfer
unimproved portions of the Property for road, highway or other public purposes;
(iv) execute petitions to have the Property annexed to any municipal corporation
or utility district; (v) execute amendments to any covenants and restrictions
affecting the Property; and (vi) execute and deliver to any person any
instrument appropriate to confirm or effect such grants, releases, dedications
and transfers (to the extent of its interest in the Property), but only upon
delivery to Landlord of an Officer's Certificate (which Officer's Certificate,
if contested by Landlord, shall not be binding on Landlord) stating that such
grant, release, dedication, transfer, petition or amendment is not detrimental
to the proper conduct of the business of Tenant on the Property and does not
reduce its value or usefulness for the Primary Intended Use. Landlord shall not
grant, release, dedicate or execute any of the foregoing items in this Section
9.4 without obtaining Tenant's approval, which approval shall not be
unreasonably withheld or delayed.

     9.5 TENANT'S ADDITIONAL COVENANTS. Tenant shall (a) join the Advisory
Association and cooperate in the activities of such association; (b) at its
election, engage in reasonable cross-marketing endeavors with the members of the
Advisory association; and (c) at its election, provide signage on the 


                                       25

<PAGE>

Property which references that the Property is owned by Landlord, which 
signage may include an appropriate logo selected by Landlord. In addition, it 
is the intent of the parties that Tenant be a single-purpose entity with no 
business operations except for those related solely to the operation of the 
Property for its Primary Intended Use and other property of Landlord which 
may be leased to Tenant. Tenant shall, therefore, not engage in or undertake 
any activities other than those respecting the operation of the Property for 
its Primary Intended Use, including leasing, managing, and operating golf 
courses in accordance with this Lease or as otherwise specified herein.

     9.6 VALUATION OF REMAINDER INTEREST IN LEASE. Tenant hereby represents
that, at the end of the Term, including all Extended Terms, it expects that the
Land and each of the Improvements will have a fair market value (determined
without regard to any increase or decrease for inflation or deflation during the
Term) equal to at least twenty percent (20%) of the fair market value of the
Land and each of the Improvements at the Commencement Date. Tenant further
represents that, at the end of the Term, including all Extended Terms, it
expects that the Land and each of the Improvements will have a remaining useful
life equal to at least twenty percent (20%) of its expected useful life at the
Commencement Date.


                                      ARTICLE 10
                                 HAZARDOUS MATERIALS

     Except as specifically set forth in that certain Phase I Environmental Site
Assessment dated September 16, 1996, prepared by  ETEC Environmental ,Tenant
hereby represents, warrants, and covenants to Landlord as follows:

     10.1 OPERATIONS.   Except as set forth in the Agreement, the Property is
presently operated in compliance in all material respects with all Environmental
Laws.

     10.2 REMEDIATION. Except as set forth in the Agreement, there are no
Environmental Laws requiring any material remediation, cleanup, repairs or
construction (other than normal maintenance) with respect to the Property.

     10.3 VIOLATIONS: ORDERS. Except as set forth in the Agreement, and to the
best knowledge of Tenant, (a) no notices of any violation or alleged violation
of any Environmental Laws relating to the Property or its uses have been
received by either Tenant, or, to the best knowledge of Tenant, by any prior
owner, operator or occupant of the Property, and (b) there are no writs,
injunctions, decrees, orders or judgments outstanding, or any actions, suits,
claims, proceedings or investigations pending or 


                                       26

<PAGE>

threatened, relating to the ownership, use, maintenance or operation of the 
Property.

     10.4 PERMITS. Except as set forth in the Agreement, all material permits
and licenses required under any Environmental Laws in respect of the operations
of the Property have been obtained or are in the process of being obtained, and
Tenant shall be in compliance, in all material respects, with the terms and
conditions of such permits and licenses.

     10.5 REPORTS. All material reports of environmental surveys, audits,
investigations and assessments relating to the Property in the possession or
control of Tenant, Transferor or their Affiliates are set forth or described in
the Agreement.

     10.6 REMEDIATION. If Tenant becomes aware of the presence of any Hazardous
Material in a quantity sufficient to require remediation or reporting under any
Environmental Law in, on or under the Property or if Tenant, Landlord, or the
Property becomes subject to any order of any federal, state or local agency to
investigate, remove, remediate, repair, close, detoxify, decontaminate or
otherwise clean up the Property, Tenant shall, at its sole expense, but subject
to the last sentence of Section 10.7, carry out and complete any required
investigation, removal, remediation, repair, closure, detoxification,
decontamination or other cleanup of the Property.  If Tenant fails to implement
and diligently pursue any such repair, closure, detoxification, decontamination
or other cleanup of the Property in a timely manner, Landlord shall have the
right, but not the obligation, to carry out such action and to recover its costs
and expenses therefor from Tenant as Additional Charges.

     10.7 TENANT'S INDEMNIFICATION OF LANDLORD. Tenant shall pay, protect,
indemnify, save, hold harmless and defend Landlord, the Company, Affiliates of
the Company and Landlord (including, without limitation, their respective
officers, directors and controlling persons), and any Facility Mortgagee from
and against all liabilities, obligations, claims, damages (including punitive or
consequential damages), penalties, causes of action, demands, judgments, costs
and expenses (including reasonable attorneys' fees and expenses), to the extent
permitted by law, imposed upon or incurred by or asserted against Landlord or
the Property by reason of any Environmental Law (irrespective of whether there
has occurred any violation of any Environmental law) in respect of the Property
howsoever arising, without regard to fault on the part of Tenant, including (a)
liability for response costs and for costs of removal and remedial action
incurred by the United States Government, any state or local governmental unit
to any other Person, or damages from injury to or destruction or loss of natural
resources, including the reasonable costs of assessing such injury, destruction
or loss, incurred pursuant to any Environmental Law, 


                                       27

<PAGE>

(b) liability for costs and expenses of abatement, investigation, removal, 
remediation, correction or clean-up, fines, damages, response costs or 
penalties which arise from the provisions of any Environmental Law, (c) 
liability for personal injury or property damage arising under any statutory 
or common-law tort theory, including damages assessed for the maintenance of 
a public or private nuisance or for carrying on of a dangerous activity, or 
(d) by reason of a breach of a representation or warranty in Sections 10.1 
through 10.5 of this Lease. Notwithstanding the foregoing or any other 
provision of this Lease (including, without limitation, Section 7.2, Section 
10.9 and Article 23),Tenant shall not be liable, or otherwise be required to 
indemnify Landlord or the Company or any Affiliates of the Company for (i) 
any matters or events that arise after the Commencement Date that are not 
caused by any act or omission on the part of Tenant, or (ii) any matters or 
events that arise after the Commencement Date that are directly caused by a 
breach by Landlord of the terms of this Lease.

     10.8 SURVIVAL OF INDEMNIFICATION OBLIGATIONS. Tenant's obligations and/or
liability under this Article 10 arising during the Term hereof shall survive any
termination of this Lease.

     10.9 ENVIRONMENTAL VIOLATIONS AT EXPIRATION OR TERMINATION OF LEASE.
Notwithstanding any other provision of this Lease (except the last sentence of
Section 10.7), if, at a time when the Term would otherwise terminate or expire,
a violation of any Environmental Law has been asserted by Landlord and has not
been resolved in a manner reasonably satisfactory to Landlord, or has been
acknowledged by Tenant to exist or has been found to exist at the Property or
has been asserted by any governmental authority and Tenant's failure to have
completed all action required to correct, abate or remediate such a violation of
any Environmental Law materially impairs the leasability of the Property upon
the expiration of the Term, then, at the option of Landlord, the Term shall be
automatically extended with respect to the Property beyond the date of
termination or expiration and this Lease shall remain in full force and effect
under the same terms and conditions beyond such date with respect to the
Property until the earlier to occur of (i) the completion of all remedial action
in accordance with applicable Environmental Laws or (ii) 12 months beyond such
expiration or Termination date; PROVIDED, that Tenant may, upon any such
extension of the Term, terminate the Term by paying to Landlord such amount as
is necessary in the reasonable judgment of Landlord to complete or perform such
remedial action.

                                      ARTICLE 11
                                MAINTENANCE AND REPAIR

     11.1 TENANT'S OBLIGATIONS. Tenant, at its expense, will operate and
maintain the Property in good order, repair and appearance (whether or not the
need for such repairs occurs as a 


                                       28

<PAGE>

result of Tenant's use, any prior use, the elements or the age of the 
Property or any portion thereof) and in accordance with any applicable Legal 
Requirements, and, except as otherwise provided in Article 15, with 
reasonable promptness, make all necessary and appropriate repairs thereto of 
every kind and nature, whether interior or exterior, structural or 
non-structural, ordinary or extraordinary, foreseen or unforeseen or arising 
by reason of a condition existing prior to the Commencement Date (concealed 
or otherwise). Tenant shall operate and maintain the Property in accordance 
with the operation and maintenance practices of the Property at the 
Commencement Date and otherwise in a manner comparable to other comparable 
golf course facilities in the vicinity of the Property. Landlord may consult 
with the Advisory Association from time to time with respect to Tenant's 
compliance with its maintenance and operation obligations under this Section 
11.1, and Landlord and representatives of Advisory Association shall have the 
right from time to time to enter the Property for the purpose of inspecting 
the Property. If Landlord, in consultation with the Advisory Association, 
determines that Tenant has failed to comply with its maintenance and 
operation obligations under this Section 11.1, Landlord shall provide written 
notice to Tenant setting forth a list of remedial work and/or steps to be 
performed by Tenant. Tenant shall promptly and diligently perform such 
remedial work and/or steps as recommended by Landlord, provided if Tenant 
objects to one or more of the remedial obligations proposed by Landlord, then 
the matter shall be submitted to the dispute resolution procedure set forth 
in Section 12.7. Tenant will not take or omit to take any action the taking 
or omission of which could reasonably be expected to impair the value or the 
usefulness of the Property or any part thereof for its Primary Intended Use.

     11.2 WAIVER OF STATUTORY OBLIGATIONS. Landlord shall not under any
circumstances be required to build or rebuild any improvements on the Property,
or to make any repairs, replacements, alterations, restorations or renewals of
any nature or description to the Property, whether ordinary or extraordinary,
structural or non-structural, foreseen or unforeseen, or to make any expenditure
whatsoever with respect thereto, in connection with this Lease, or to maintain
the Property in any way. Tenant hereby waives, to the extent permitted by law,
the right to make repairs at the expense of Landlord pursuant to any law in
effect at the time of the execution of this Lease or hereafter enacted.

     11.3 MECHANIC'S LIENS. Nothing contained in this Lease and no action or
inaction by Landlord shall be construed as (i)constituting the consent or
request of Landlord expressed or implied, to any contractor, subcontractor,
laborer, materialman or vendor to or for the performance of any labor or
services or the furnishing of any materials or other property for the
construction, alteration, addition, repair or demolition of or to the Property
or 


                                       29

<PAGE>

any part thereof; or (ii) giving Tenant any right, power or permission to
contract for or permit the performance of any labor or services or the
furnishing of any materials or other property, in either case, in such fashion
as would permit the making of any claim against Landlord in respect thereof or
to make any agreement that may create, or in any way be the basis for, any
right, title, interest, lien, claim or other encumbrance upon the estate of
Landlord in the Property, or any portion thereof.

     11.4 SURRENDER OF PROPERTY. Unless the Lease shall have been terminated
pursuant to the provisions of Article 15, Tenant shall, upon the expiration or
prior termination of the Term, vacate and surrender the Property to Landlord in
the condition in which the Property was originally received from Landlord,
except as repaired, rebuilt, restored, altered or added to as permitted or
required by the provisions of this Lease and except for ordinary wear and tear
(subject to the obligation of Tenant to maintain the Property in good order and
repair during the entire Term of the Lease).

                                      ARTICLE 12
TENANT IMPROVEMENTS; SUBMITTAL OF BUDGETS; FINANCIAL STATEMENTS

     12.1 TENANT'S RIGHT TO CONSTRUCT. Subject to the prior written approval of
Landlord in its reasonable discretion, during the Lease Term Tenant may make
alterations, additions, changes and/or improvements to the Property
(individually, a "Tenant Improvement," and collectively, "Tenant Improvements").
Any such Tenant Improvement shall be made at Tenant's sole expense and shall
become the property of Landlord upon termination of this Lease; provided,
however, that Tenant may depreciate the costs of such Tenant Improvements
subject to applicable federal and state tax laws provided the funds used to
construct such Tenant Improvements were not provided for as a capital
expenditure by Landlord or an Affiliate of Landlord. Unless made on an emergency
basis to prevent injury to Person or property, Tenant will submit plans and
specifications for any Tenant Improvements, in the form necessary for any
required building permits, to Landlord for Landlord's prior written approval,
and such response shall not be unreasonably withheld or delayed (failure by
Landlord to provide such response within thirty (30) days after receipt of the
plans and specifications shall be deemed approval).  

     Upon approval by Landlord:

          (a) Tenant shall diligently seek all governmental approvals and
     any other necessary private approvals (E.G.,ground lessor, mortgagee,
     etc.) relating to the construction of any Tenant Improvement; and

          (b) once Tenant begins the construction of any Tenant
     Improvement, Tenant shall diligently prosecute any 


                                       30

<PAGE>

     such Tenant Improvement to completion in accordance with applicable 
     insurance requirements and the laws, rules and regulations of all 
     governmental bodies or agencies having jurisdiction over the Property; 
     and

          (c) Tenant shall not suffer or permit any mechanics' liens or any
     other claims or demands arising from the work of construction of any
     Tenant Improvement to be enforced against the Property or any part
     thereof, and Tenant agrees to hold Landlord and the Property free and
     harmless from all liability from any such liens, claims or demands,
     together with all costs and expenses in connection therewith: and

          (d) all work shall be performed in a good and workmanlike manner.

     12.2 SCOPE OF RIGHT. Subject to Section 12.1, at Tenant's cost and expense,
Tenant shall have the right to:

          (a) seek any governmental approvals, including building permits,
     licenses, conditional use permits and any certificates of need that
     Tenant requires to construct any Tenant Improvement;

          (b) erect upon the Property such Tenant Improvements as Tenant
     deems desirable; and

          (c) engage in any other lawful activities that Tenant determines
     are necessary or desirable for the development of the Property in
     accordance with its Primary Intended Use.

     12.3 COOPERATION OF LANDLORD. Landlord shall cooperate with Tenant and take
such actions, including the execution and delivery to Tenant of any applications
or other documents, reasonably requested by Tenant in order to obtain any
governmental approvals sought by Tenant to construct any Tenant Improvement
approved by Landlord in accordance with Section 12.1 of this Lease within ten
(10) Business Days following the later of (a) the date Landlord receives
Tenant's request, or (b) the date of delivery of any such application or
document to Landlord, so long as the taking of such action, including the
execution of said applications or documents, shall be without cost to Landlord
(or if there is a cost to Landlord, such cost shall be reimbursed by Tenant),
and will not cause Landlord to be in violation of any law, ordinance or
regulation.

     Landlord shall have the right at any time and from time to time to post and
maintain upon the Property such notices as may be 


                                       31

<PAGE>

necessary to protect Landlord's interest from mechanics' liens, materialmen's 
liens or liens of a similar nature.

     12.4 CAPITAL REPLACEMENT FUND. Solely from the payment of additional rent
received pursuant to Section 4.9 of this Lease, Landlord shall be obligated to
accrue the Capital Replacement Reserve. The Capital Replacement Reserve shall
accrue quarterly based on the Officer's Certificate and shall be placed in the
Capital Replacement Fund. Amounts in the Capital Replacement Fund from time to
time shall be deemed to accrue interest at a money market rate as reasonably
determined by landlord and such interest shall be credited to the Capital
Replacement Fund. Upon the written request by Tenant to Landlord stating the
specific use to be made and subject to the reasonable approval of Landlord, the
Capital Replacement Fund shall be made available to Tenant for Capital
Expenditures; PROVIDED, HOWEVER, no portion of amounts credited to the Capital
Replacement Fund shall be used to purchase property to the extent that doing so
would cause Landlord to recognize income other than "rents from real property"
as defined in Section 856(d) of the Code. Tenant shall have no rights with
respect to any amounts in the Capital Replacement Fund except as provided
herein. Subject to Landlord's approval of the Capital Expenditures, Landlord
shall make available to Tenant amounts from the Capital Replacement Fund under
the following conditions:

          (a)  No Event of Default exists and is continuing;

          (b)  Tenant presents paid qualifying receipts for reimbursement,
     or qualifying invoices for direct payment to the vendor; 

          (c)  Such expenditures are included in the Capital Budget
     submitted to and approved by Landlord in accordance with Section 12.7;
     and  

          (d)  If from time to time Tenant shall expend monies beyond the
     balance in the Capital Replacement Fund, then Tenant shall be afforded
     the opportunity to present such paid invoices for reimbursement at
     later dates when the Tenant's reserve balance shall be replenished to
     a level that can support such expenditure.

     12.5 RIGHTS IN TENANT IMPROVEMENTS. All Tenant Improvements shall be the
property of Landlord. However, Tenant shall be entitled to all federal and state
income tax benefits associated with any Tenant Improvement during the Lease Term
exclusive of any Capital Expenditures paid for from amounts credited to the
Capital Replacement Fund, as to which Landlord shall be entitled all income tax
benefits.


                                       32

<PAGE>

     12.6 LANDLORD'S RIGHT TO AUDIT CALCULATION OF GROSS GOLF REVENUE. Landlord,
at its own expense except as provided hereinbelow, shall have the right from
time to time directly or through its accountants to audit the information set
forth in the Officer's Certificate referred to in Section 4.4 and in connection
with such audits to examine Tenant's book and records with respect thereto
(including supporting data, sales tax returns and Tenant's work papers). If any
such audit discloses a deficiency in the payment of Percentage Rent, Tenant
shall forthwith pay to Landlord the amount of the deficiency as finally agreed
or determined, together with interest at the Overdue Rate from the date when
said payment should have been made to the date of payment thereof; PROVIDED,
HOWEVER, that as to any audit that is commenced more than twelve (12) months
after the date Gross Golf Revenue for any Fiscal Year is reported by Tenant to
Landlord in the Officer's Certificate, the deficiency, if any, with respect to
such Gross Golf Revenue shall bear interest as permitted herein only from the
date such determination of deficiency is made unless such deficiency is the
result of gross negligence or willful misconduct on the part of Tenant. If any
such audit discloses that the Gross Golf Revenue actually received by Tenant for
any Fiscal Year exceeds the Gross Golf Revenue reported by Tenant in the
Officer's Certificate by more than two percent (2%), then Tenant shall pay all
reasonable costs of such audit and examination; provided Tenant shall have the
right to submit the audit determination to arbitration in accordance with the
procedures set forth in Article 28. Landlord shall also have the right to review
and audit from time to time Tenant's business operations including all books,
records and financial statements of Tenant. Tenant shall promptly provide to
Landlord copies of all such books, records, financial statements or any other
documentation of Tenant's business operations reasonably requested by Landlord.

     12.7 ANNUAL BUDGET. Not later than forty-five (45)days prior to the
commencement of each Fiscal Year, Tenant shall prepare and submit to Landlord an
operating budget (the"Operating Budget") and a capital budget (the "Capital
Budget") prepared in accordance with the requirements of this Section 12.7 The
Operating Budget and the Capital Budget (together, the"Annual Budget") shall be
prepared in a form approved by Landlord for use throughout the Lease Term and
show by quarter and for the year as a whole the following:

          (a)  Tenant's reasonable estimate of Gross Golf Revenue
     (including membership dues, daily use fees and other sources of Gross
     Golf Revenue) and other revenue for the forthcoming Fiscal Year
     itemized on schedules on a quarterly basis as approved by Landlord and
     Tenant, together with assumptions, in narrative form, forming the
     basis of such schedules. 


                                       33

<PAGE>

          (b)  An estimate of any amounts Landlord will be requested to
     provide for Capital Expenditures during the next four Fiscal Years,
     subject to the limitations set forth in Section 12 4.

          (c)  A cash flow projection.

          (d)  A narrative description of any anticipated significant
     events, including, if requested by Landlord, a narrative description
     of any category of operating expenses that decrease or increase by
     five percent (5%) or more from the prior year's expenses.

          (e)  Tenant's reasonable estimate for each Fiscal Quarter of the
     Percentage Rent to be paid for such quarter.

     Landlord shall have thirty (30) days after the date on which it receives
the Annual Budget to review, approve or disapprove the Annual Budget. If the
parties are not able to reach agreement on the Annual Budget for any Fiscal Year
during landlord's thirty (30) day review period, the parties shall attempt in
good faith during the subsequent thirty (30) day period to resolve any disputes,
which attempts shall include, if requested by either party, at least one (1)
meeting of executive-level officers of Landlord and Tenant and one (1) meeting
with the directors of the Advisory Association. In the event the parties are
still not able to reach agreement on the Annual Budget for any particular Fiscal
Year after complying with the foregoing requirements of this Section 12.7, the
parties shall adopt such portions of the Operating Budget and the Capital Budget
as they may have agreed upon, and any matters not agreed upon shall be referred
to a dispute resolution committee composed of three (3) members of the Advisory
Association unaffiliated with Tenant and two (2) members of the board of
directors of the Company. Such committee shall be responsible for resolving any
such disagreement and the parties agree that the determination of such dispute
resolution committee shall be binding on the parties. Pending the results of
such resolution or the earlier agreement of the parties, (i) if the Operating
Budget has not been agreed upon, the Property will be operated in a manner
consistent with the prior year's Operating Budget until a new Operating Budget
is adopted, and (ii) if the Capital Budget has not been agreed upon, no Capital
Expenditures shall be made unless the same are set forth in a previously
approved Capital Budget or are specifically required by Landlord or are
otherwise required to comply with Legal Requirements or Insurance Requirements.
Tenant shall operate the Property in a manner reasonably consistent with the
Annual Budget.

     12.8      FINANCIAL STATEMENTS.


                                       34

<PAGE>

     (a)  Tenant shall utilize, or cause to be utilized, an accounting practice
for the Property in accordance with its usual and customary practice, and in
accordance with GAAP, that will accurately record all data necessary to compute
Percentage Rent, and Tenant shall retain for at least five (5) years after the
expiration of each Fiscal Year, reasonably adequate records conforming to such
accounting system showing all data necessary to compute Percentage Rent. The
books of account and all other records relating to or reflecting the operation
of the Property shall be kept either at the Property or at Tenant's offices in
Belen, Valencia County, New Mexico. Such books and records shall be available to
Landlord and its representatives for examination, audit, inspection and
transcription.

     (b)  Tenant shall furnish to Landlord within thirty (30) days of the end of
each Fiscal Quarter unaudited financial statements for the Fiscal Quarter and
year to date, together with the same information for the comparable prior Fiscal
Quarter and year to date, including the following: results of operations,
balance sheet, statements of cash flows and statement of changes in owner's
equity. If Landlord requests, Tenant shall provide reviewed financial statements
for such Fiscal Quarter; provided, however, such review shall be at Landlord's
expense. Each quarterly report shall also include a narrative explaining any
deviation in any major revenue or expense category or operating expenses (by
category) of more than ten percent (10%) from the amounts set forth on the
Annual Budget, together with, if appropriate a revised Annual Budget, which
budget shall be subject to Landlord's review and approval as provided in Section
12.7.   Each quarterly report shall also forecast any projected Percentage Rent
payable for the following Fiscal Quarter.

     (c)  For each Fiscal Year, Tenant shall deliver to Landlord within sixty
(60) days of the end of such Fiscal Year financial statements prepared in
accordance with GAAP and audited by an independent accounting firm approved by
Landlord, in its reasonable discretion. Notwithstanding the foregoing, Landlord
shall only require audited financial statements of Gross Golf Revenue if
Tenant's financial statements are not required to be separately stated by the
Securities and Exchange Commission.

     (d)  If requested by Landlord, Tenant will make available to Landlord and
the Company and their respective lenders, underwriters, counsel, accountants and
advisors such additional information and financial statements with respect to
Tenant and the Property as Landlord may reasonably request without any
additional cost to Tenant, and Tenant agrees to reasonably cooperate with
Landlord and the Company in effecting public or private debt or equity
financings by the Landlord or the Company, without any additional cost to
Tenant, modifications to this Lease or the requirement of additional collateral
from Tenant.


                                       35

<PAGE>

                                      ARTICLE 13
                     LIENS, ENCROACHMENTS AND OTHER TITLE MATTERS

     13.1 LIENS. Subject to the provisions of Article 14 relating to permitted
contests, Tenant will not directly or indirectly create or allow to remain, and
will promptly discharge at its expense any lien, encumbrance, attachment, title
retention agreement or claim upon the Property or any attachment, levy, claim or
encumbrance emanating from Tenant's actions or negligence, not including,
however:

          (a)  this Lease;    

          (b)  the matters, if any, that existed as of the Commencement
     Date, as set forth on the title policy received by Landlord;     

          (c)  restrictions, liens and other encumbrances which are
     consented to in writing by Landlord, or any easements granted pursuant
     to the provisions of Section 9.4 of this Lease;

          (d)  liens for those taxes of Landlord which Tenant is not
     required to pay hereunder;

          (e)  subleases or licenses permitted by Article 23;

          (f)  liens for Impositions or for sums resulting from
     noncompliance with Legal Requirements so long as (1) the same are not
     yet payable or are payable without the addition of any fine or penalty
     or (2) such liens are in the process of being contested as permitted
     by Article 14;

          (g)  liens of mechanics, laborers, materialmen, suppliers or
     vendors for sums either disputed (PROVIDED THAT such liens are in the
     process of being contested as permitted by Article 14) or not yet due;
     and

          (h)  any liens which are the responsibility of Landlord pursuant
     to the provisions of Article 25.

     13.2 ENCROACHMENTS AND OTHER TITLE MATTERS. Subject to Article 21 and
excepting any matters granted or created by Landlord after the Commencement
Date, if any of the Improvements shall, at any time, encroach upon any property,
street or right-of-way adjacent to the Property, or shall violate the agreements
or conditions contained in any lawful restrictive covenant or other agreement
affecting the Property, or any part thereof, or shall impair the rights of
others under any easement or right-of-way to which the 


                                       36

<PAGE>

Property is subject, or the use of the Property is impaired, limited or 
interfered with by reason of the exercise of the right of surface entry or 
any other rights under a lease or reservation of any oil, gas, water or other 
minerals, then promptly upon request of Landlord or at the behest of any 
person affected by any such encroachment, violation or impairment, Tenant, at 
its sole cost and expense (subject to its right to contest the existence of 
any such encroachment, violation or impairment), shall protect, indemnify, 
save harmless and defend landlord, the Company and Affiliates of the Company 
from and against all losses, liabilities, obligations, claims, damages, 
penalties, causes of action, costs and expenses (including reasonable 
attorneys' fees and expenses) based on or arising by reason of any such 
encroachment, violation or impairment and in such case, in the event of an 
adverse final determination, either (i) obtain valid and effective waivers or 
settlements of all claims, liabilities and damages resulting from each such 
encroachment, violation or impairment, whether the same shall affect Landlord 
or Tenant; or (ii) make such changes in the Improvements, and take such other 
actions, as Tenant in the good faith exercise of its judgment deems 
reasonably practicable, to remove such encroachment, and to end such 
violation or impairment, including, if necessary, the alteration of any of 
the Improvements, and in any event take all such actions as may be necessary 
in order to be able to continue the operation of the Improvements for the 
Primary Intended Use substantially in the manner and to the extent the 
Improvements were operated prior to the assertion of such violation or 
encroachment. Tenant's obligation under this Section 13.2 shall be in 
addition to and shall in no way discharge or diminish any obligation of any 
insurer under any policy of title or other insurance and Tenant shall be 
entitled to a credit for any sums recovered by Landlord under any such policy 
of title or other insurance.

                                      ARTICLE 14
                                  PERMITTED CONTESTS

     14.1 AUTHORIZATION. Tenant, on its own or on Landlord's behalf (or in
Landlord's name) but at Tenant's expense, may contest, by appropriate legal
proceedings conducted in good faith and with due diligence, the amount, validity
or application, in whole or in part, of any Imposition or any Legal Requirement
or Insurance Requirement, or any lien, attachment, levy, encumbrance, charge or
claim not otherwise permitted by Section 13.1; provided, however, that nothing
in this Section 14.1 shall limit the right of Landlord to contest the amount,
validity or application, in whole or in part, of any Imposition, Legal
Requirement, Insurance Requirement, or any lien, attachment, levy, encumbrance,
charge or claim with respect to the Property (and Tenant shall reasonably
cooperate with Landlord with respect to such contest), and, FURTHER PROVIDED
THAT:


                                       37

<PAGE>

          (a)  in the case of an unpaid Imposition, lien, attachment, levy,
     encumbrance, charge or claim, the commencement and continuation of
     such proceedings shall suspend the collection thereof from Landlord
     and from the Property, and neither the Property nor any Rent there
     from nor any part thereof or interest therein would be in any danger
     of being sold, forfeited, attached or lost pending the outcome of such
     proceedings;

          (b)  in the case of a Legal Requirement, Landlord would not be
     subject to criminal or material civil liability for failure to comply
     therewith pending the outcome of such proceedings. Nothing in this
     Section 14.1(b), however, shall permit Tenant to delay compliance with
     any requirement of an Environmental Law to the extent such
     non-compliance poses an immediate threat of injury to any Person or to
     the public health or safety or of material damage to any real or
     personal property;

          (c)  in the case of a Legal Requirement and/or an Imposition,
     lien, encumbrance or charge, Tenant shall give such reasonable
     security, if any, as may be demanded by Landlord to insure ultimate
     payment of the same and to prevent any sale or forfeiture of the
     affected Property or the Rent by reason of such non-payment or
     noncompliance, PROVIDED. HOWEVER, the provisions of this Article 14
     shall not be construed to permit Tenant to contest the payment of Rent
     (except as to contests concerning the method of computation or the
     basis of levy of any Imposition or the basis for the assertion of any
     other claim) or any other sums payable by Tenant to Landlord
     hereunder;

          (d)  no such contest shall interfere in any material respect with
     the use or occupancy of the Property;

          (e)  in the case of an Insurance Requirement, the coverage
     required by Article 15 shall be maintained; and

          (f)  if such contest be finally resolved against Landlord or
     Tenant, Tenant shall, as Additional Charges due hereunder, promptly
     pay the amount required to be paid, together with all interest and
     penalties accrued thereon, or comply with the applicable Legal
     Requirement or Insurance Requirement.

     14.2 INDEMNIFICATION OF LANDLORD. Landlord, at Tenant's expense, shall
execute and deliver to Tenant such authorizations and other documents as may
reasonably be required in any such contest, and, if reasonably requested by
Tenant or if Landlord so 


                                       38

<PAGE>

desires, Landlord shall join as a party therein. Tenant shall indemnify and 
save Landlord harmless against any liability, cost or expense of any kind 
that may be imposed upon Landlord in connection with any such contest and any 
loss resulting therefrom.

                                      ARTICLE 15
                                      INSURANCE

     15.1      GENERAL INSURANCE REQUIREMENTS. During the Lease Term, Tenant
shall at all times keep the Property, and all property located in or on the
Property, including all Tenant's Personal Property and any Tenant Improvements,
insured with the kinds and amounts of insurance described below. This insurance
shall be written by companies authorized to do insurance business in the State,
and shall otherwise meet the requirements set forth in Section 15.5 of this
Lease. The policies must name Landlord as an additional insured or loss payee,
as applicable. Losses shall be payable to Landlord and/or Tenant as provided in
this Article 15. In addition, the policies shall name as a loss payee any
Facility Mortgagee by way of a standard form of mortgagee's loss payable
endorsement. Any loss adjustment shall require the written consent of Landlord,
Tenant, and each Facility Mortgagee, if any. Evidence of insurance shall be
deposited with Landlord and, if requested, with any Facility Mortgagee(s). The
policies on the Property, including the Improvements, Fixtures, Tangible and
Intangible Personal Property and any Tenant Improvements, shall insure against
the following risks:

          (a)  ALL RISK. Loss or damage by all risks or perils including,
     but not limited to, fire, vandalism, malicious mischief and extended
     coverages, including sprinkler leakage, in an amount not less than
     100% of the then Full Replacement Cost thereof covering all structures
     built on the Property and all Tangible Personal Property; and further
     provided the Tangible Personal Property may be insured at its fair
     market value.

          (b)  LIABILITY. Claims for personal injury or property damage
     under a policy of comprehensive general public liability insurance
     with amounts not less than five million dollars ($5,000,000) per
     occurrence and in the aggregate.

          (c)  FLOOD. Flood insurance (when the Property is located in
     whole or in material part a designated floodplain area) in an amount
     similar to the amount insured by comparable golf course properties in
     the area.  Notwithstanding the foregoing, Tenant shall not be required
     to participate in the National Flood Insurance Program or otherwise
     obtain flood insurance to the extent 


                                       39

<PAGE>

     not available at commercially reasonable rates; provided Tenant shall 
     give landlord written notice thereof prior to canceling or not obtaining 
     any flood insurance. Tenant may opt to insure the structures only, and 
     not the Land, subject to the approval of Landlord, in Landlord's reasonable
     discretion.

          (d)  WORKER'S COMPENSATION. Adequate worker's compensation
     insurance coverage for all Persons employed by Tenant on the Property
     in accordance with the requirements of applicable federal, state and
     local laws. Tenant shall have the option to self-insure up to five
     thousand dollars ($5,000) of the amount of insurance required in the
     event state law permits such self-insurance, subject to the approval
     of Landlord, in Landlord's sole and absolute discretion.

     15.2 OTHER INSURANCE. Such other insurance on or in connection with any of
the Property as Landlord or any Facility Mortgagee may reasonably require, which
at the time is usual and commonly obtained in connection with properties similar
in type of building size and use to the Property and located in the geographic
area where the Property is located.     

     15.3 REPLACEMENT COST. In the event either party believes that the Full
Replacement Cost of the insured property has increased or decreased at any time
during the Lease Term, it shall have the right to have such Full Replacement
Cost redetermined by the Impartial Appraiser. The party desiring to have the
Full Replacement Cost so redetermined shall forthwith, on receipt of such
determination by such Impartial Appraiser, give written notice thereof to the
other party hereto. The determination of such Impartial Appraiser shall be final
and binding on the parties hereto, and Tenant shall forthwith increase, or may
decrease, the amount of the insurance carried pursuant to this Section 15.3, as
the case may be, to the amount so determined by the Impartial Appraiser. Each
party shall pay one-half of the fee, if any, of the Impartial Appraiser.

     15.4 WAIVER OF SUBROGATION. All insurance policies carried by either party
covering the Property including contents, fire and casualty insurance, shall
expressly waive any right of subrogation on the part of the insurer against the
other party(including any Facility Mortgagee). The parties hereto agree that
their policies will include such waiver clause or endorsement so long as the
same are obtainable without extra cost, and in the event of such an extra charge
the other party, at its election, may pay the same, but shall not be obligated
to do so.

     15.5 FORM SATISFACTORY, ETC. All of the policies of insurance referred to
in this Article 15 shall be written in a form 


                                       40

<PAGE>

reasonably satisfactory to Landlord and by insurance companies rated not less 
than XV by A.M. Best's Insurance Guide.  Tenant shall pay all premiums for 
the policies of insurance referred to in Sections 15.1 and 15.2 and shall 
deliver certificates thereof to Landlord prior to their effective date(and 
with respect to any renewal policy, at least ten (10) days prior to the 
expiration of the existing policy). In the event Tenant fails to satisfy its 
obligations under this Article 15, Landlord shall be entitled, but shall have 
no obligation, to effect such insurance and pay the premiums therefore, which 
premiums shall be repayable to Landlord upon written demand as Additional 
Charges. Each insurer issuing policies pursuant to this Article 15 shall 
agree, by endorsement on the policy or policies issued by it, or by 
independent instrument furnished to Landlord, that it will give to Landlord 
thirty (30) days' written notice before the policy or policies in question 
shall be altered, allowed to expire or canceled. Each such policy shall also 
provide that any loss otherwise payable thereunder shall be payable 
notwithstanding (i) any act or omission of Landlord or Tenant which might, 
absent such provision, result in a forfeiture of all or a part of such 
insurance payment, (ii) the occupation or use of the Property for purposes 
more hazardous than those permitted by the provisions of such policy, (iii) 
any foreclosure or other action or proceeding taken by any Facility Mortgagee 
pursuant to any provision of a mortgage, note, assignment or document 
evidencing or securing a loan upon the happening of an event of default 
therein or (iv) any change in title to or ownership of the Property

     15.6 CHANGE IN LIMITS. In the event that Landlord shall at any time
reasonably determine on the basis of prudent industry practice that the
liability insurance carried by Tenant pursuant to Sections 15.1 and 15.2 is
either excessive or insufficient, the parties shall endeavor to agree on the
proper and reasonable limits for such insurance to be carried; and such
insurance shall thereafter be carried with the limits thus agreed on until
further changed pursuant to the provisions of this Article 15; provided,
however, that the deductibles for such insurance or the amount of such insurance
which is self-retained by Tenant shall be as reasonably determined by Tenant so
long as Tenant can reasonably demonstrate its ability to satisfy such deductible
or amount of such self-retained insurance.

     15.7 BLANKET POLICY. Notwithstanding anything to the contrary contained in
this Article 15, Tenant's obligations to carry the insurance provided for herein
may be brought within the coverage of a so-called blanket policy or policies of
insurance carried and maintained by Tenant; PROVIDED, HOWEVER, that the coverage
afforded Landlord will not be reduced or diminished or otherwise be different
from that which would exist under a separate policy meeting all other
requirements of this Lease by reason of the use of such blanket policy of
insurance, and provided further that the 


                                       41

<PAGE>

requirements of this Article 15 are otherwise satisfied. The amount of this 
total insurance allocated to each of the Leased Properties, which amount 
shall be not less than the amounts required pursuant to Sections 15.1 and 
15.2, shall be specified either (i) in each such "blanket" or umbrella policy 
or (ii) in a written statement, which Tenant shall deliver to Landlord and 
Facility Mortgagee, from the insurer thereunder. A certificate of each such 
"blanket" or umbrella policy shall promptly be delivered to Landlord and 
Facility Mortgagee.

     15.8 INSURANCE PROCEEDS. All proceeds of insurance payable by reason of any
loss or damage to the Property, or any portion thereof, and insured under any
policy of insurance required by this Article 15 shall (i) if greater than
$100,000, be paid to Landlord and held by Landlord and (ii) if less than such
amount, be paid to Tenant and held by Tenant. All such proceeds shall be held in
trust and shall be made available for reconstruction or repair, as the case may
be, of any damage to or destruction of the Property, or any portion thereof.

     15.9 DISBURSEMENT OF PROCEEDS. Any proceeds held by landlord or Tenant
shall be paid out by Landlord or Tenant from time to time for the reasonable
costs of such reconstruction or repair; PROVIDED, HOWEVER, that Landlord shall
disburse proceeds subject to the following requirements:

          (a)  prior to commencement of restoration, (i) the architects,
     contracts, contractors, plans and specifications for the restoration
     shall have been approved by Landlord, which approval shall not be
     unreasonably withheld or delayed and (ii) appropriate waivers of
     mechanics' and materialmen's liens shall have been filed;

          (b)  Tenant shall have obtained and delivered to Landlord copies
     of all necessary governmental and private approvals necessary to
     complete the reconstruction or repair, including building permits,
     licenses, conditional use Permits and certificates of need;

          (c)  at the time of any disbursement, subject to Article 14, no
     mechanics' or materialmen's liens shall have been filed against any of
     the Property and remain undischarged, unless a satisfactory bond shall
     have been posted in accordance with the laws of the State;

          (d)  disbursements shall be made from time to time in an amount
     not exceeding the cost of the work completed since the last
     disbursement, upon receipt of (i) satisfactory evidence of the stage
     of completion, the estimated total cost of completion and performance
     of the 


                                       42

<PAGE>

     work to date in a good and workmanlike manner in accordance with the 
     contracts, plans and specifications, (ii) waivers of liens, (iii) a 
     satisfactory bring down of title insurance and (iv) other evidence of 
     cost and payment so that Landlord and Facility Mortgagee can verify that
     the amounts disbursed from time to time are represented by work that is
     completed, in place and free and clear of mechanics' and materialmen's
     lien claims;

          (e)  each request for disbursement shall be accompanied by a
     certificate of Tenant, signed by a senior member or officer of Tenant,
     describing the work for which payment is requested, stating the cost
     incurred in connection therewith, stating that Tenant has not
     previously received payment for such work and, upon completion of the
     work, also stating that the work has been fully completed and complies
     with the applicable requirements of this Lease;   

          (f)  to the extent actually held by Landlord and not a Facility
     Mortgagee, (1) the proceeds shall be held in a separate account and
     shall not be commingled with Landlord's other funds, and (2) interest
     shall accrue on funds so held at the money market rate of interest and
     such interest shall constitute part of the proceeds; and

          (g)  such other reasonable conditions as Landlord or Facility
     Mortgagee may reasonably impose, including, without limitation,
     Payment by Tenant of reasonable costs of administration imposed by or
     on behalf of Facility Mortgagee should the proceeds be held by
     Facility Mortgagee.

     15.10 EXCESS PROCEEDS, DEFICIENCY OF PROCEEDS. Any excess proceeds of
insurance remaining after the completion of the restoration or reconstruction of
the Property (or in the event neither Landlord nor Tenant is required to or
elects to repair and restore) shall be paid to Landlord and deposited in the
Capital Replacement Fund except for any portion specifically applicable to
Tenant's merchandise and inventory. All salvage resulting from any risk covered
by insurance shall belong to Landlord.

     If the costs of restoration or reconstruction exceeds the amount of
proceeds received by Landlord or Tenant from insurance, Tenant shall pay for
such excess cost of restoration or reconstruction, except that Tenant may
petition Landlord for withdrawal from the Capital Replacement Fund to cover some
or all of such excess, subject to the approval of Landlord in Landlord's sole
and absolute discretion.

     15.11 RECONSTRUCTION COVERED BY INSURANCE.


                                       43

<PAGE>

          (a)  DESTRUCTION RENDERING PROPERTY UNSUITABLE FOR ITS PRIMARY
     USE. If during the term the Property is totally or partially destroyed
     from a risk covered by the insurance described in Article 15 and the
     Property thereby is rendered Unsuitable For Its Primary Intended Use
     as reasonably determined by Landlord, Tenant shall, at its election,
     either (i) diligently restore the Property to substantially the same
     condition as existed immediately before the damage or destruction, or
     (ii) terminate the Lease as provided in Section 21.2 and assign all of
     its rights to any insurance proceeds required under this Lease to
     Landlord.

          (b)  DESTRUCTION NOT RENDERING PROPERTY UNSUITABLE FOR ITS
     PRIMARY USE. If during the term, the Property is totally or partially
     destroyed from a risk covered by the insurance described in Article
     15, but the Real Property is not thereby rendered Unsuitable For Its
     Primary Intended Use, Tenant shall diligently restore the Property to
     substantially the same condition as existed immediately before the
     damage or destruction; PROVIDED, HOWEVER, Tenant shall not be required
     to restore certain Tangible Personal Property and/or any Tenant
     Improvements if failure to do so does not adversely affect the amount
     of Rent payable hereunder or the Primary Intended Use in substantially
     the same manner immediately prior to such damage or destruction.  Such
     damage or destruction shall not terminate this Lease; PROVIDED
     FURTHER, HOWEVER, if Tenant cannot within eighteen (18) months obtain
     all necessary governmental approvals, including building permits,
     licenses, conditional use permits and any certificates of need. after
     diligent efforts to do so in order to be able to perform all required
     repair and restoration work and to operate the Property for its
     Primary Intended Use in substantially the same manner immediately
     prior to such damage or destruction, Tenant may terminate the Lease.

     15.12 RECONSTRUCTION NOT COVERED BY INSURANCE. If during the Term, the
Property is totally or materially destroyed from a risk not covered by the
insurance described in Article 15, whether or not such damage or destruction
renders the Property Unsuitable For Its Primary Intended Use, Tenant shall
restore the Property to substantially the same condition as existed immediately
before the damage or destruction. Tenant shall have the right to use proceeds
from the Capital Replacement Fund to perform such work, subject to the
conditions set forth in Section 12.4 hereof.

     15.13 NO ABATEMENT OF RENT. This Lease shall remain in full force and
effect and Tenant's obligation to make rental payments 


                                       44

<PAGE>

and to pay all other charges required by this Lease shall remain unabated 
during the period required for repair and restoration.

     15.14 WAIVER. Tenant hereby waives any statutory rights of termination
which may arise by reason of any damage or destruction of the Property which
Landlord or Tenant is obligated to restore or may restore under any of the
provisions of this lease.

     15.15 DAMAGE NEAR END OF TERM. Notwithstanding any other provision to the
contrary in this Article 15, if damage to or destruction of the Property occurs
during the last twenty-four (24) months of the Lease Term, and if such damage or
destruction cannot reasonably be expected by Landlord to be fully repaired or
restored prior to the date that is twelve (12) months prior to the end of the
then-applicable Term, then either Landlord or Tenant shall have the right to
terminate the Lease on thirty (30) days' prior notice to the other by giving
notice thereof within sixty (60) days after the date of such damage or
destruction.  Upon any such termination, Landlord shall be entitled to retain
all insurance proceeds, grossed up by Tenant to account for the deductible or
any self-insured retention. If Landlord shall give Tenant a notice under this
Section 15.15 that it seeks to terminate this Lease at a time when Tenant has a
remaining Extended Term, then such termination notice shall be of no effect if
Tenant shall exercise its rights to extend the Term not later than the earlier
of the time required by Section 3.2 or thirty (30) days after Landlord's notice
given under this Section 15.15.

                                      ARTICLE 16
                                     CONDEMNATION

     16.1 TOTAL TAKING. If at any time during the Term the Property is totally
and permanently taken by Condemnation, this Lease shall terminate on the Date of
Taking and Tenant shall promptly pay all outstanding rent and other charges
through the date of termination.

     16.2 PARTIAL TAKING. If a portion of the Property is taken by Condemnation,
this Lease shall remain in effect if the Property is not thereby rendered
Unsuitable For Its Primary Intended Use, but if the Property is thereby rendered
Unsuitable For Its Primary Intended Use, this Lease shall terminate on the date
of`Taking.

     16.3 RESTORATION. If there is a partial taking of the Property and this
Lease remains in full force and effect pursuant to Section 16.2, Landlord at its
cost shall accomplish all necessary restoration up to but not exceeding the
amount of the Award payable to Landlord, as provided herein. If Tenant receives
an Award under Section 16.4, Tenant shall repair or restore any Tenant
Improvements up to but not exceeding the amount of the Award payable to Tenant
therefor. 


                                       45

<PAGE>

     16.4 AWARD-DISTRIBUTION. The entire Award shall belong to and be paid to
Landlord, except that, subject to the rights of the Facility Mortgagee, Tenant
shall be entitled to receive from the Award, if and to the extent such Award
specifically includes such items, a sum attributable to the value, if any, of:
(i) the loss of Tenant's business during the remaining term, (ii) any Tenant
Improvements and (iii) the leasehold interest of Tenant under this Lease.  

     16.5 TEMPORARY TAKING. The taking of the Property, or any part thereof, by
military or other public authority shall constitute a taking by Condemnation
only when the use and occupancy by the taking authority has continued for longer
than six (6) months. During any such six (6) month period, which shall be a
temporary taking, all the provisions of this Lease shall remain in full force
and effect with no abatement of rent payable by Tenant hereunder. In the event
of any such temporary taking, the entire amount of any such Award made for such
temporary taking allocable to the Lease Term, whether paid by way of damages,
rent or otherwise shall be paid to Tenant.

                                      ARTICLE 17
                                  EVENTS OF DEFAULT

     17.1 EVENTS OF DEFAULT. If any one or more of the following events
(individually, an "Event of Default") shall occur:

          (a)  if Tenant shall fail to make payment of the Rent payable by
     Tenant under this Lease when the same becomes due and payable and such
     failure is not cured by Tenant within a period of ten (10) days after
     receipt by Tenant of notice thereof from Landlord; PROVIDED, HOWEVER,
     Tenant is only entitled to three (3) such notices per twelve (12)
     month period and that such notice shall be in lieu of and not in
     addition to any notice required under applicable law;
     
          (b)  if Tenant shall fail to observe or perform any material
     term, covenant or condition of this Lease and such failure is not
     cured by Tenant within a period of thirty (30) days after receipt by
     Tenant of notice thereof from landlord, unless such failure cannot
     with due diligence be cured within a period of thirty (30) days, in
     which case such failure shall not be deemed to continue if Tenant
     proceeds promptly and with due diligence to cure the failure and
     diligently completes the curing thereof within one hundred twenty
     (120) days of receipt of notice from Landlord of the default;
     PROVIDED, HOWEVER, that such notice shall be in lieu of and not in
     addition to any notice required under applicable law; PROVIDED
     FURTHER, HOWEVER, that the cure 


                                       46

<PAGE>

     period shall not extend beyond thirty (30) days as otherwise provided 
     by this Section 17.1(b) if the facts or circumstances giving rise to the 
     default are creating a further harm to Landlord or the Property and 
     Landlord makes a good faith determination that Tenant is not undertaking 
     remedial steps that Landlord would cause to be taken if this lease were
     then to terminate;

          (c)  if Tenant shall:    

               (i)  admit in writing its inability to pay its debts as they
          become due,

               (ii) file a petition in bankruptcy or a petition to take
          advantage of any insolvency act,

               (iii) make an assignment for the benefit of its creditors,

               (iv) be unable to pay its debts as they mature,   

               (v)  consent to the appointment of a receiver of itself or
          of the whole or any substantial part of its property, or

               (vi) file a petition or answer seeking reorganization or
          arrangement under the Federal bankruptcy laws or any other
          applicable law or statute of the United States of America or any
          state thereof;

          (d) if Tenant shall, on a petition in bankruptcy filed against
     it, be adjudicated as bankrupt or a court of competent jurisdiction
     shall enter an order or decree  appointing, without the consent of
     Tenant, a receiver of Tenant or of the whole or substantially all of
     its property, or approving a petition filed against it seeking
     reorganization or arrangement of Tenant under the federal bankruptcy
     laws or any other applicable law or statute of the United States of
     America or any state thereof, and such judgment, order or decree shall
     not be vacated or set aside or stayed within sixty (60) days from the
     date of the entry thereof;

          (e)  if Tenant shall be liquidated or dissolved, or shall begin
     proceedings toward such liquidation or dissolution;


                                       47

<PAGE>

          (f)  if the estate or interest of Tenant in the property or any
     part thereof shall be levied upon or attached in any proceeding and
     the same shall not be vacated or discharged within the later of ninety
     (90) days after commencement thereof or thirty (30) days after receipt
     by Tenant of notice thereof from Landlord (unless Tenant shall be
     contesting such lien or attachment in accordance with Article 14);
     PROVIDED, HOWEVER, that such notice shall be in lieu of and not in
     addition to any notice required under applicable law;

          (g)  if, except as a result of damage, destruction or a partial
     or complete Condemnation or other Unavoidable delays, Tenant
     voluntarily ceases operations on the property;

          (h)  any representation or warranty made by Tenant herein or in
     any certificate, demand or request made pursuant hereto proves to be
     incorrect, now or hereafter, in any material respect; or

          (i)  an "Event of Default" (as defined in such lease)by Tenant or
     any Affiliate of Tenant in any other lease by and  between such party
     and Landlord or any Affiliate of Landlord, or an "Event of Default"
     under the Pledge Agreement;   

     THEN, Tenant shall be declared to have breached this lease. Landlord may
terminate this Lease by giving Tenant not less than ten (10) days' notice (or no
notice for clauses (c), (d), (e), (f) and (g)) of such termination and upon the
expiration of the time fixed in such notice, the Term shall terminate and all
rights of Tenant under this Lease shall cease.  Landlord shall have all rights
at law and in equity available to Landlord as a result of Tenant's breach of
this Lease.

     17.2  PAYMENT OF COSTS. Tenant shall, to the extent permitted by law, pay
as Additional Charges all costs and expenses incurred by or on behalf of
Landlord, including reasonable attorneys' fees and expenses, as a result of any
Event of Default hereunder.

     17.3  CERTAIN REMEDIES. If an Event of Default shall have occurred and be
continuing, whether or not this Lease has been terminated pursuant to Section
17.1, Tenant shall, to the extent permitted by law, if required by Landlord to
do so, immediately surrender to Landlord the Property pursuant to the provisions
of Section 17.1 and quit the same and Landlord may enter upon and repossess the
Property by reasonable force, summary proceedings, ejectment or otherwise, and
may remove Tenant and all other Persons and any and all Tenant's Personal
Property from the Property subject to any requirement of law.


                                       48

<PAGE>

     17.4 DAMAGES. None of the following events shall relieve Tenant of its
liability and obligations hereunder, all of which shall survive any such
termination, repossession or reletting: (a) the termination of this Lease
pursuant to Section 17.1, (b) the repossession of the Property, (c) the failure
of landlord, notwithstanding reasonable good faith efforts, to relet the
Property, (d) the reletting of all or any portion thereof, nor (e) the failure
of Landlord to collect or receive any rentals due upon any such reletting. In
the event of any such termination, Tenant shall forthwith pay to Landlord all
Rent due and payable with respect to the Property to, and including, the date of
such termination. Thereafter, Tenant shall forthwith pay to Landlord, at
Landlord's option, as and for liquidated and agreed current damages for Tenant's
default, and not as a penalty, either:

          (a) the sum of:

               (i)  the worth at the time of award of the unpaid Rent which had
          been earned at the time of termination,

               (ii) the worth at the time of award of the amount by which the
          unpaid Rent which would have been earned after termination until the
          time of award exceeds the amount of such unpaid Rent that Tenant
          proves could have been reasonably avoided,

               (iii) the worth at the time of award of the amount by which the
          unpaid Rent for the balance of the Term after the time of award
          exceeds the amount of such unpaid Rent that Tenant proves could be
          reasonably avoided, and

               (iv) any other amount necessary to compensate Landlord for all
          the detriment proximately caused by Tenant's failure to perform its
          obligations under this Lease or which in the ordinary course of things
          would be likely to result therefrom.  

     In making the above determinations, the "worth at the time of the award" in
subsections (i) and (iii) shall be determined by the court having jurisdiction
thereof including interest at the Overdue Rate and the "worth at the time of the
award" in subsection (iii) shall be determined by the court having jurisdiction
thereof using a discount rate equal to the discount rate of the Federal Reserve
Bank of San Francisco at the time of the award plus one percent (1%) and the
Percentage Rent shall be deemed to be the same as for the then-current Fiscal
Year or, if not determinable, the immediately preceding Fiscal Year, for the
remainder of the Term, or such other amount as either party shall prove
reasonably could have been earned during the remainder of the Term or any
portion thereof; or


                                       49

<PAGE>

          (b)  without termination of Tenant's right to possession of the
     Property, each installment of said Rent another sums payable by Tenant
     to Landlord under the Lease as the same becomes due and payable, which
     Rent and other sums shall bear interest at the Overdue Rate from the
     date when due until paid, and Landlord may enforce, by action or
     otherwise, any other term or covenant of this Lease.

     17.5 ADDITIONAL REMEDIES. Landlord has all other remedies that may be
available under applicable law.

     17.6 APPOINTMENT OF RECEIVER. Upon the occurrence of an Event of Default,
and upon filing of a suit or other commencement of judicial proceedings to
enforce the rights of Landlord hereunder, Landlord shall be entitled, as a
matter or right, to the appointment of a receiver or receivers acceptable to
Landlord of the Property and of the revenues, earnings, income, products and
profits thereof, pending such proceedings, with such powers as the court making
such appointment shall confer.

     17.7 WAIVER. If this Lease is terminated pursuant to Section 17.1, Tenant
waives, to the extent permitted by applicable law (a) any right of redemption,
re-entry or repossession and (b) any right to a trial by jury.

     17.8 APPLICATION OF FUNDS. Any payments received by Landlord under any of
the provisions of this Lease during the existence or continuance of any Event of
Default (and such payment is made to Landlord rather than Tenant due to the
existence of an Event of Default) shall be applied to Tenant's obligations in
the order which Landlord may determine or as maybe prescribed by the laws of the
State.

     17.9 IMPOUNDS. Landlord shall have the right during the continuance of an
Event of Default to require Tenant to pay to Landlord an additional monthly sum
(each an "Impound Payment")sufficient to pay the Impound Charges (as hereinafter
defined) as they become due. As used herein, "Impound Charges" shall mean real
estate taxes on the Property or payments in lieu thereof and premiums on any
insurance required by this Lease. Landlord shall determine the amount of the
Impound Charges and of each Impound Payment. The Impound Payments shall be held
in a separate account and shall not be commingled with other funds of Landlord
and interest thereon shall be held for the account of Tenant.  Landlord shall
apply the Impound Payments to the payment of the Impound Charges in such order
or priority as Landlord shall determine or as required by law. If at any time
the Impound payments theretofore paid to Landlord shall be insufficient for the
payment of the Impound Charges, Tenant, within ten (10) days after 


                                       50

<PAGE>

Landlord's demand therefor, shall pay the amount of the deficiency to Landlord.

                                      ARTICLE 18
                      LANDLORD'S RIGHT TO CURE TENANT'S DEFAULT

     If Tenant shall fail to make any payment or to perform any act required to
be made or performed under this Lease, and to cure the same within the relevant
time periods provided in Article 17, Landlord, after notice to and demand upon
Tenant, and without waiving or releasing any obligation or default, may (but
shall be under no obligation to) at any time thereafter make such payment or
perform such act for the account and at the expense of Tenant. Landlord may, to
the extent permitted by law, enter upon the Property for such purpose and take
all such action thereon as, in Landlord's opinion, may be necessary or
appropriate therefor. No such entry shall be deemed an eviction of Tenant.  All
sums so paid by Landlord and all costs and expenses(including reasonable
attorneys' fees and expenses, to the extent permitted by law) so incurred,
together with a late charge thereon at the Overdue Rate from the date on which
such sums or expenses are paid or incurred by Landlord, shall be paid by Tenant
to Landlord on demand. The obligations of Tenant and rights of Landlord
contained in this Article 18 shall survive the expiration or earlier termination
of this Lease.

                                      ARTICLE 19
                                  LEGAL REQUIREMENTS

     Subject to Article 14 regarding permitted contests, Tenant, at its expense,
shall promptly (a) comply with all Legal requirements and Insurance Requirements
in respect of the use, operation, maintenance, repair and restoration of the
Property, whether or not compliance therewith shall require structural changes
in any of the Improvements or interfere with the use and enjoyment of the
Property; and (b) procure, maintain and comply with all licenses and other
authorizations required for any use of the Property then being made, and for the
proper erection, installation, operation and maintenance of the Property or any
part thereof.

                                      ARTICLE 20
                                     HOLDING OVER

     If Tenant shall for any reason remain in possession of the Property after
the expiration of the Term or earlier termination of the Term hereof, such
possession shall be deemed to be a Tenant at sufferance during which time Tenant
shall pay as rental each month, 125% of the aggregate of (i) the aggregate base
Rent and monthly portion of the Percentage Rent payable with respect to that
month in the last Fiscal Year; (ii) all additional Charges accruing during the
month; and (iii) all other sums, if any, payable by 


                                       51

<PAGE>

Tenant pursuant to the provisions of this Lease with respect to the Property. 
During such period of month-to-month tenancy, Tenant shall be obligated to 
perform and observe all of the terms, covenants and conditions of this Lease, 
but shall have no rights hereunder other than the right, to the extent given 
by law to month-to-month tenancies, to continue its occupancy and use of the 
Property. Nothing contained herein shall constitute the consent, express or 
implied, of Landlord to the holding over of Tenant after the expiration or 
earlier termination of this Lease.

                                      ARTICLE 21
                                     RISK OF LOSS

     During the Lease Term, the risk of loss or of decrease in the enjoyment and
beneficial use of the Property as a consequence of the damage or destruction
thereof by fire, flood, the elements, casualties, thefts, riots, wars or
otherwise, or inconsequence of foreclosures, attachments, levies or
executions(other than by Landlord and those claiming from, through or under
Landlord) is assumed by Tenant. In the absence of gross negligence, willful
misconduct or breach of this Lease by Landlord pursuant to Section 28.2,
Landlord shall in no event be answerable or accountable therefor nor shall any
of the events mentioned in this Article 21 entitle Tenant to any abatement  of
Rent.

                                      ARTICLE 22
                                   INDEMNIFICATION

     22.1 TENANT'S INDEMNIFICATION OF LANDLORD. Except as otherwise provided in
Section 10.7 and notwithstanding the existence of any insurance provided for in
Article 15, and without regard to the policy limits of any such insurance,
Tenant will protect, indemnify, save harmless and defend Landlord, the Company
and Affiliates of the Company from and against all liabilities, obligations,
claims, actual or consequential damages, penalties, causes of action, costs and
expenses(including reasonable attorneys' fees and expenses), to the extent
permitted by law, imposed upon or incurred by or asserted against Landlord, the
Company or Affiliates of the Company by reason of:

          (a)  any accident, injury to or death of persons or loss of or damage
     to property occurring on or about the Property or adjoining property,
     including, but not limited to, any accident, injury to or death of Person
     or loss of or damage to property resulting from golf balls, golf clubs,
     golf shoes, lawn mowers or other equipment, pesticides, fertilizers or
     other substances, golf carts, tractors or other motorized vehicles present
     on or adjacent to the Property;

          (b)  any use, misuse, non-use, condition, maintenance or repair of the
     Property;


                                       52

<PAGE>

          (c)  any Impositions (which are the obligations of Tenant to pay
     pursuant to the applicable provisions of this Lease);

          (d)  any failure on the part of Tenant to perform or comply with any
     of the terms of this Lease;

          (e)  any so-called "dram shop" liability associated with the sale
     and/or consumption of alcohol at the Property;

          (f)  the non-performance of any of the terms and provisions of any and
     all existing and future subleases of the Property to be performed by the
     landlord (Tenant)thereunder;

          (g)  the negligence or alleged negligence of Landlord with respect to
     the Property; or

          (h)  any liability Landlord may incur or suffer as a result of any
     permitted contest by Tenant pursuant to Article 14.

     22.2 LANDLORD'S INDEMNIFICATION OF TENANT. Landlord shall protect,
indemnify, save harmless and defend Tenant from and against all liabilities,
obligations, claims, actual or consequential damages, penalties, causes of
action, costs and expenses (including reasonable attorneys' fees) imposed upon
or incurred by or asserted against Tenant as a result of Landlord's active,
gross negligence or willful misconduct.

     22.3 MECHANICS OF INDEMNIFICATION. As soon as reasonably practicable after
receipt by the indemnified party of notice of any liability or claim incurred by
or asserted against the indemnified party that is subject to indemnification
under this Article 22, the indemnified party shall give notice thereof to the
indemnifying party. The indemnified party may at its option demand indemnity
under this Article 22 as soon as a claim has been threatened by a third party,
regardless of whether an actual loss has been suffered, so long as the
indemnified party shall in good faith determine that such claim is not frivolous
and that the indemnified party may be liable for, or otherwise incur, a loss as
a result thereof and shall give notice of such determination to the indemnifying
party. The indemnified party shall permit the indemnifying party, at its option
and expense, to assume the defense of any such claim by counsel selected by the
indemnifying party and reasonably satisfactory to the indemnified party, and to
settle or otherwise dispose of the same; PROVIDED, HOWEVER, that the indemnified
party may at all times participate in such defense at its expense, and PROVIDED
FURTHER, HOWEVER, that the indemnifying party shall not, in defense of any such
claim, except with the prior written consent of the indemnified party, consent
to the entry of any judgment or to enter into any settlement that does 


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<PAGE>

not include as an unconditional term thereof the giving by the claimant or 
plaintiff in question to the indemnified party and its affiliates a  release 
of all liabilities in respect of such claims, or that does not result only in 
the payment of money damages by the indemnifying party. If the indemnifying 
party shall fail to undertake such defense within thirty (30) days after such 
notice, or within such shorter time as may be reasonable under the 
circumstances, then the indemnified party shall have the right to undertake 
the defense, compromise or settlement of such liability or claim on behalf of 
and for the account of the indemnifying party.

     22.4 SURVIVAL OF INDEMNIFICATION OBLIGATIONS; AVAILABLE INSURANCE PROCEEDS.
Tenant's or Landlord's liability for a breach of the provisions of this Article
22 arising during the term hereof shall survive any termination of this Lease. 
Notwithstanding anything herein to the contrary, each party agrees to look first
to the available proceeds from any insurance it carries in connection with the
Property prior to seeking indemnification or otherwise seeking to recover any
amounts to compensate a party for its damages and then to seek indemnification
only to the extent of any loss not covered by their available insurance
proceeds.

                                      ARTICLE 23
                              SUBLETTING AND ASSIGNMENT

     23.1 PROHIBITION AGAINST ASSIGNMENT. Tenant shall not, without the prior
written consent of Landlord, which consent Landlord may withhold in its sole
discretion, assign, mortgage, pledge, hypothecate, encumber or otherwise
transfer (except to an Affiliate of Tenant or a Permitted Assignee) the Lease or
any interest therein, all or any part of the Property, whether voluntarily,
involuntarily or by operation of law. For purposes of this Article 23, a Change
in Control of the Tenant shall constitute an assignment of this Lease.


     23.2 SUBLEASES.

     (a) PERMITTED SUBLEASES. Tenant shall not, without the prior written
consent of Landlord, which consent Landlord may withhold in its sole discretion,
further sublease or license portions of the Property to third parties, including
concessionaires or licensees. Without limiting the foregoing, Tenant's proposed
sublease of any of the following transfers shall require Landlord's prior
written consent, which consent Landlord may withhold in its sole discretion:

     (i)  sublease or license to operate golf courses; 


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<PAGE>

     (ii) sublease or license to operate golf professionals' shops;   

     (iii)sublease or license to operate golf driving ranges;

     (iv) sublease or license to provide golf lessons by other than a resident
professional;

     (v) management agreement to operate restaurants by and between Transferor
and Tenant;

     (vi) management agreement to operate bars by and between Transferor and
Tenant;

     (vii) sublease or license to operate spa or health clubs and

     (viii)  sublease or license to operate any other portions(but not the
entirety) of the Property customarily associated with or incidental to the
operation of the golf course.

     (ix) notwithstanding the foregoing, Landlord agrees that a sublease or
license to operate a casino on the Property is permitted subject to written
approval by Landlord of the terms and conditions of the arrangement and approval
of any third party casino operator.  Tenant agrees to pay to Landlord as
additional Rent not less than ten (10%) percent of Tenant's gross revenues
related to any casino operation on the Property.  

     (b) TERMS OF SUBLEASE. Each sublease with respect to the Property shall be
subject and subordinate to the provisions of this Lease. No sublease made as
permitted by this Section 23.2 shall affect or reduce any of the obligations of
Tenant hereunder, and all such obligations shall continue in full force and
effect as if no sublease had been made. No sublease shall impose any additional
obligations on Landlord under this Lease.

     (c) COPIES. Tenant shall, not less than sixty (60) days prior to any
proposed assignment or sublease, deliver to Landlord written notice of its
intent to assign or sublease, which notice shall identify the intended assignee
or sublessee by name and address, shall specify the effective date of the
intended assignment or sublease, and shall be accompanied by an exact copy of
the proposed assignment or sublease. Tenant shall provide Landlord with such
additional information or documents reasonably requested by Landlord with
respect to the proposed transaction and the proposed assignee or subtenant, and
an opportunity to meet and interview the proposed assignee or subtenant, if
requested.

     (d) ASSIGNMENT OF RIGHTS IN SUBLEASES. As security for performance of its
obligations under this Lease, Tenant hereby grants, conveys and assigns to
Landlord all right, title and 


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<PAGE>

interest of Tenant in and to all subleases now in existence or hereinafter 
entered into for any or all of the Property, and all extensions, 
modifications and renewals thereof and all rents, issues and profits 
therefrom.  Landlord hereby grants to Tenant a license to collect and enjoy 
all rents and other sums of money payable under any sublease of any of the 
Property; provided, however, that Landlord shall have the absolute right at 
any time after the occurrence and continuance of an Event of Default upon 
notice to Tenant and any subtenants to revoke said license and to collect 
such rents and sums of money and to retain the same. Tenant shall not (i) 
consent to, cause or allow any material modification or alteration of any of 
the terms, conditions or covenants of any of the subleases or the termination 
thereof, without the prior written approval of Landlord nor (ii) accept any 
rents (other than customary security deposits) more than ninety (90) days in 
advance of the accrual thereof nor permit anything to be done, the doing of 
which, nor omit or refrain from doing anything, the omission of which, will 
or could be a breach of or default in the terms of any of the subleases.

     (e) LICENSES ETC. For purposes of this Section 23.2, subleases shall be
deemed to include any licenses, concession arrangements, management contracts
(except to an Affiliate of the Lessee) or other arrangements relating to the
possession or use of all or any part of the Property.

     23.3 TRANSFERS. No assignment or sublease shall in any way impair the
continuing primary liability of Tenant hereunder, as a principal and not as a
surety or guarantor, and no consent to any assignment or sublease in a
particular instance shall be deemed to be a waiver of the prohibition set forth
in section 23.1. Any assignment shall be solely of Tenant's entire interest in
this Lease. Any assignment or other transfer of all or any portion of Tenant's
interest in the Lease in contravention of the terms of this Lease shall be
voidable at Landlord's option. Anything in this Lease to the contrary
notwithstanding, Tenant shall not sublet all or any portion of the Property or
enter into any other agreement which has the effect of reducing the Percentage
Rent payable to Landlord hereunder.

     23.4 REIT LIMITATIONS. Anything contained in this Lease to the contrary
notwithstanding, Tenant shall not (i)sublet or assign or enter into other
arrangements such that the amounts to be paid by the sublessee or assignee
thereunder would be based, in whole or in part, on the income or profits derived
by the business activities of the sublessee or assignee; (ii) sublet or assign
the Property or this Lease to any person that Landlord owns, directly or
indirectly (by applying constructive ownership rules set forth in Section
856(d)(5) of the Code), a 10% or greater interest; or (iii) sublet or assign the
Property or this Lease in any other manner or otherwise derive any income which
could cause any portion of the 


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<PAGE>

amounts received by Landlord pursuant to this Lease or any sublease to fail 
to qualify as "rents from real property" within the meaning of Section 856(d) 
of the Code, or which could cause any other income received by Landlord to 
fail to qualify as income described in Section 856(c)(2) of the Code. The 
requirements of this Section 23.4 shall likewise apply to any further 
subleasing by any subtenant.

     23.5 RIGHT OF FIRST OFFER OF LANDLORD TO ACQUIRE LEASEHOLD. In addition to
Landlord's rights in Section 23.1, Landlord or its designee shall have, for a
period of sixty (60) days following receipt of the written notice of Tenant's
intent to assign its interest in the Lease to a third party unaffiliated with
Tenant (and in which management of the Tenant shall have no continuing
management or ownership interest), the right to elect to purchase the leasehold
interest on the terms and conditions at which Tenant proposes to sell or assign
its interest. If landlord or its designee elects not to purchase such interest
of Tenant, then Tenant shall be free to sell its interest to a third party,
subject to Landlord's prior written consent as provided in Section 23.1.
However, if (i) the price at which Tenant intends to sell its interest is
reduced by five percent (5%) or more, or (ii) the assignment to the third party
is not completed within one hundred eighty (180) days of Landlord's receipt of
written notice of Tenant's intention to assign its interest in the Lease, then
Tenant shall again offer Landlord the right to acquire its interest; provided,
however, that in the case of a change in price, Landlord shall have only fifteen
(15) days to accept such revised offer.

     23.6 BANKRUPTCY LIMITATIONS.

     (a) Tenant acknowledges that this Lease is a lease of nonresidential real
property and therefore agrees that Tenant, as the debtor in possession, or the
trustee for Tenant(collectively, the "Trustee") in any proceeding under Title 11
of the United States Bankruptcy Code relating to Bankruptcy, as amended (the
"Bankruptcy Code"), shall not seek or request any extension of time to assume or
reject this Lease or to perform any obligations of this Lease which arise from
or after the order of relief.

     (b) If the Trustee proposes to assume or to assign this Lease or sublet the
Property (or any portion thereof) to any Person which shall have made a bona
fide offer to accept an assignment of this Lease or a subletting on terms
acceptable to the Trustee, the Trustee shall give Landlord, and lessors and
mortgagees of Landlord of which Tenant has notice, written notice setting forth
the name and address of such person and the terms and conditions of such offer,
no later than twenty (20) days after receipt of such offer, but in any event no
later than ten(10) days prior to the date on which the Trustee makes application
to the bankruptcy court for authority and approval to enter into such assumption
and assignment 


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<PAGE>

or subletting.  Landlord shall have the prior right and option, to be 
exercised by written notice to the Trustee given at any time prior to the 
effective date of such proposed assignment or subletting, to receive-and 
assignment of this Lease or subletting of the property to Landlord or 
Landlord's designee upon the same terms and conditions and for the same 
consideration, if any, as the bona fide offer made by such person, less any 
brokerage commissions which may be payable out of the consideration to be 
paid by such person for the assignment or subletting of this Lease.

     (c) The Trustee shall have the right to assume Tenant's rights and
obligations under this Lease only if the Trustee: (a) promptly cures any Event
of Default then existing or provides adequate assurance that the Trustee will
promptly compensate Landlord for any actual pecuniary loss incurred by Landlord
as a result of Tenant's default under this Lease; and(c) provides adequate
assurance of future performance under this Lease. Adequate assurance of future
performance by the proposed assignee shall include, as a minimum, that: (i) any
proposed assignee of this Lease shall provide to Landlord an audited financial
statement, dated no later than six (6) months prior to the effective date of
such proposed assignment or sublease, with no material change therein as of the
effective date, which financial statement shall show the proposed assignee to
have a net worth reasonably satisfactory to Landlord or, in the alternative, the
proposed assignee shall provide a guarantor of such proposed assignee's
obligations under this Lease, which guarantor shall provide an audited financial
statement meeting the requirements of (i) above and shall execute and deliver to
Landlord a guaranty agreement in form and substance acceptable to Landlord; and
(ii) any proposed assignee shall grant to Landlord a security interest in favor
of Landlord in all furniture, fixtures, and other personal property to be used
by such proposed assignee in the Property. All payments required of Tenant under
this Lease, whether or not expressly denominated as such in this Lease, shall
constitute rent for the purposes of Title 11 of the Bankruptcy Code.

     (d) The parties agree that for the purposes of the Bankruptcy code relating
to (a) the obligation of the Trustee to provide adequate assurance that the
Trustee will "promptly" cure defaults and compensate Landlord for actual
pecuniary loss, the word "promptly" shall mean that cure of defaults and
compensation will occur no later than sixty (60) days following the filing of
any motion or application to assume this Lease; and (b) the obligation of the
Trustee to compensate or to provide adequate assurance that the Trustee will
promptly compensate Landlord for"actual pecuniary loss." The term "actual
pecuniary loss" shall mean, in addition to any other provisions contained herein
relating to Landlord's damages upon default, obligations of Tenant to pay money
under this Lease and all attorneys' fees and related costs of Landlord 


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<PAGE>

incurred in connection with any default of Tenant in connection with Tenant's 
bankruptcy proceedings).

     (e) Any person or entity to which this Lease is assigned pursuant to the
provisions of the Bankruptcy Code shall be deemed, without further act or deed,
to have assumed all of the obligations arising under this Lease and each of the
conditions and provisions hereof on and after the date of such assignment. Any
such assignee shall, upon the request of Landlord, forthwith execute and deliver
to Landlord an instrument, in form and substance acceptable to Landlord,
confirming such assumption.

     23.7 MANAGEMENT AGREEMENT. Tenant shall not enter into any management
agreement that provides for the management and operation of the entire Property
by an unaffiliated third party without the prior written consent of Landlord.


                                      ARTICLE 24
                     OFFICER'S CERTIFICATES AND OTHER STATEMENTS

     24.1 OFFICER'S CERTIFICATES. At any time, and from time to time upon
Tenant's receipt of not less than ten (10) days' prior written request by
Landlord, Tenant will furnish to Landlord an Officer's Certificate certifying
that:

     (a) this Lease is unmodified and in full force and effect (or that this
Lease is in full force and effect as modified and setting forth the
modifications);

     (b) the dates to which the Rent has been paid;    

     (c) whether or not to the best knowledge of Tenant, Landlord is in default
in the performance of any covenant, agreement or condition contained in this
Lease and, if so, specifying each such default of which Tenant may have
knowledge;

     (d) that, except as otherwise specified, there are no proceedings pending
or, to the knowledge of the signatory, threatened, against Tenant before or by
any court or administrative agency which, if adversely decided, would materially
and adversely affect the financial condition and operations of Tenant; and

     (e)  responding to such other questions or statements of fact as Landlord
shall reasonably request.

     Tenant's failure to deliver such Officer's Certificate within such time
shall constitute an acknowledgment by Tenant that this Lease is unmodified and
in full force and effect except as may be represented to the contrary by
Landlord, Landlord is not in default in the performance of any covenant,
agreement or condition contained in this Lease and the other matters set forth
in such 


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<PAGE>

request, if any, are true and correct. Any such Officer's Certificate
furnished pursuant to this Section 24.1 may be relied upon by Landlord and any
prospective lender or purchaser.

     24.2 ENVIRONMENTAL STATEMENTS.   Immediately upon Tenant's learning, or
having reasonable cause to believe, that any Hazardous Material in a quantity
sufficient to require remediation or reporting under applicable law is located
in, on or under the Property or any adjacent property, Tenant shall notify
Landlord in writing of (a) the existence of any such Hazardous Material; (b) any
enforcement, cleanup, removal, or other governmental or regulatory action
instituted, completed or threatened; (c) any claim made or threatened by any
Person against Tenant or the Property relating to damage, contribution, cost
recovery, compensation, loss, or injury resulting from or claimed to result from
any Hazardous Material; and (d) any reports made to any federal, state or local
environmental agency arising out of or in connection with any Hazardous Material
in or removed from the Property, including any complaints, notices, warnings or
asserted violations in connection therewith.

                                      ARTICLE 25
                                  LANDLORD MORTGAGES

     25.1 LANDLORD MAY GRANT LIENS. Subject to Section 25.2, without the consent
of Tenant, Landlord may, from time to time, directly or indirectly, create or
otherwise cause to exist any Landlord's Encumbrance upon the Property, or any
portion thereof or interest therein, whether to secure any borrowing or other
means of financing or refinancing. This Lease is and at all times shall be
subject and subordinate to any ground or underlying leases, mortgages, trust
deeds or like encumbrances, which may now or hereafter affect the Property and
to all renewals, modifications, consolidations, replacements and extensions of
any such lease, mortgage, trust deed or like encumbrance. This clause shall be
self-operative and no further instrument of subordination shall be required by
any ground or underlying lessor or by any mortgagee or beneficiary, affecting
any lease or the Property. In confirmation of such subordination, Tenant shall
execute promptly any certificate that landlord may request for such purposes.

     25.2 TENANT'S NON-DISTURBANCE RIGHTS. So long as Tenant shall pay all Rent
as the same becomes due and shall fully comply with all of the terms of this
Lease and fully perform its obligations hereunder, none of Tenant's rights under
this Lease shall be disturbed by the holder of any Landlord's Encumbrance which
is created or otherwise comes into existence after the Commencement Date. 
Landlord and Tenant agree to execute subordination, non-disturbance and
attornment agreements, estoppel agreements, and other similar documents
requested by mortgagees of Landlord or Tenant, which are in form and content
reasonably acceptable to Landlord and Tenant.


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<PAGE>

     25.3 FACILITY MORTGAGE PROTECTION. Tenant agrees that the holder of any
Landlord Encumbrance shall have no duty, liability or obligation to perform any
of the obligations of Landlord under this Lease, but that in the event of
Landlord's default with respect to any such obligation, Tenant will give any
such holder whose name and address have been furnished Tenant in writing for
such purpose notice of Landlord's default and allow such holder thirty (30) days
following receipt of such notice for the cure of said default before invoking
any remedies Tenant may have by reason thereof.

                                      ARTICLE 26
                                 SALE OF FEE INTEREST

     26.1 RIGHT OF FIRST OFFER TO PURCHASE. If Landlord intends to sell the
Property during the Lease Term, and provided no Event of Default then exists,
Tenant shall have a right of first offer to purchase the Property ("Tenant's
Right of First Offer to Purchase") on the terms and conditions at which Landlord
proposes to sell the Property to a third party. Landlord shall give Tenant
written notice of its intent to sell and shall indicate the terms and conditions
(including the sale price) upon which Landlord intends to sell the Property to a
third party.  Tenant shall thereafter have sixty (60) days to elect in writing
to purchase the Property and execute a Purchase and Sale Agreement with respect
thereto and shall have an additional fifty(50) days to close on the acquisition
of the Property on the terms and conditions set forth in the notice provided by
Landlord to Tenant; provided that prior to the execution of a binding purchase
and sale agreement, Landlord shall retain the right to elect not to sell the
Property. If Tenant does not elect to purchase the Property, then Landlord shall
be free to sell the property to a third party. However, if the price at which
Landlord intends to sell the Property to a third party is less than 95% of the
price set forth in the notice provided by Landlord to Tenant, then Landlord
shall again offer Tenant the right to acquire the Property upon the same terms
and conditions, provided that Tenant shall have only thirty (30) days thereafter
to complete the acquisition at such price, terms and conditions.

     26.2 CONVEYANCE BY LANDLORD. If Landlord shall convey the Property in
accordance with the terms hereof other than as security for a debt, Landlord
shall, upon the written assumption by the transferee of the Property of all
liabilities and obligations of the Lease be released from all future liabilities
and obligations under this Lease arising or accruing from and after the date of
such conveyance or other transfer as to the Property. All such future
liabilities and obligations shall thereupon be binding upon the new owner.


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<PAGE>

                                     ARTICLE 27
                                    ARBITRATION

     27.1 ARBITRATION. In each case specified in this Lease in which it shall
become necessary to resort to arbitration, such arbitration shall be determined
as provided in this Section 27.1. The party desiring such arbitration shall give
notice to that effect to the other party, and an arbitrator shall be selected by
mutual agreement of the parties, or if they cannot agree within thirty (30) days
of such notice, by appointment made by the American Arbitration Association
("AAA") from among the members of its panels who are qualified and who have
experience in resolving matters of a nature similar to the matter to be resolved
by arbitration.

     27.2 ARBITRATION PROCEDURES. In any arbitration commenced pursuant to
Section 27.1 a single arbitrator shall be designated and shall resolve the
dispute. The arbitrator's decision shall be binding on all parties and shall not
be subject to further review or appeal except as otherwise allowed by applicable
law. Upon the failure of either party (the "non-complying party") to comply with
his decision, the arbitrator shall be empowered, at the request of the other
party, to order such compliance by the non-complying party and to supervise or
arrange for the supervision of the non-complying party. To the maximum extent
practicable, the arbitrator and the parties, and the AAA if applicable, shall
take any action necessary to insure that the arbitration shall be concluded
within ninety (90) days of the filing of such dispute. The fees and expenses of
the arbitrator shall be shared equally by Landlord and Tenant. Unless otherwise
agreed in writing by the parties or required by the arbitrator or AAA, if
applicable, arbitration proceedings hereunder shall be conducted in the State.
Notwithstanding formal rules of evidence, each party may submit such evidence as
each party deems appropriate to support its position and the arbitrator shall
have access to and right to examine all books and records of Landlord and Tenant
regarding the Property during the arbitration.

                                     ARTICLE 28
                                   MISCELLANEOUS

     28.1 LANDLORD'S RIGHT TO INSPECT. Tenant shall permit Landlord and its
authorized representatives to inspect the Property during usual business hours
subject to any security, health, safety or confidentiality requirements of
Tenant or any governmental agency or insurance requirement relating to the
Property, or imposed by law or applicable regulations. Landlord shall indemnify
Tenant for all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever which may be imposed-on, incurred by, or asserted 


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<PAGE>

against Tenant by reason of Landlord's inspection pursuant to this Section 28.1.

     28.2 BREACH BY LANDLORD. It shall be a breach of this Lease if Landlord
shall fail to observe or perform any material term, covenant or condition of
this Lease on its part to be performed and such failure shall continue for a
period of thirty (30) days after notice thereof from Tenant, unless such failure
cannot with due diligence be cured within a period of thirty (30) days, in which
case such failure shall not be deemed to continue if Landlord, within said
thirty (30)-day period, proceeds promptly and with due diligence to cure the
failure and diligently completes the curing thereof. The time within which
Landlord shall be obligated to cure any such failure shall also be subject to
extension of time due to the occurrence of any Unavoidable Delay. In no event
shall any breach by Landlord permit Tenant to terminate this Lease or permit
Tenant to offset any Rent due and owing hereunder or otherwise excuse Tenant
from any of its obligations hereunder.

     28.3 COMPETITION BETWEEN LANDLORD AND TENANT.  Landlord and Tenant agree
that neither party shall be restricted as to other relationships and
competition. Affiliates of Tenant shall be allowed to own, lease and/or manage
other golf courses that are not affiliated with Landlord, provided that such
other ownership, leasing or management arrangements are disclosed to Landlord in
writing. Landlord may acquire or own golf courses that may be geographically
proximate to one or more golf courses that Tenant or Affiliates of Tenant may
own, manage or lease.

     28.4 NO WAIVER. No failure by Landlord or Tenant to insist upon the strict
performance of any term hereof or to exercise any right, power or remedy
consequent upon a breach thereof, and no acceptance of full or partial payment
of Rent during the continuance of any such breach, shall constitute a waiver of
any such breach or of any such term. To the extent permitted by law, no waiver
of any breach shall affect or alter this Lease, which shall continue in full
force and effect with respect to any other then existing or subsequent breach.

     28.5 REMEDIES CUMULATIVE. To the extent permitted by law, each legal,
equitable or contractual rights, power and remedy of Landlord or Tenant now or
hereafter provided either in this Lease or by statute or otherwise shall be
cumulative and concurrent and shall be in addition to every other right, power
and remedy. The exercise or beginning of the exercise by Landlord or Tenant of
any one or more of such rights, powers and remedies shall not preclude the
simultaneous or subsequent exercise by Landlord or Tenant of any or all of such
other rights, powers and remedies.

     28.6 ACCEPTANCE OF SURRENDER. No surrender to Landlord of this Lease or of
the Property or any part thereof, or of any interest 


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<PAGE>

therein, shall be valid or effective unless agreed to and accepted in writing 
by Landlord and no act by Landlord or any representative or agent of 
Landlord, other than such a written acceptance by Landlord, shall constitute 
an acceptance of any such surrender.

     28.7 NO MERGER OF TITLE. There shall be no merger of this Lease or of the
leasehold estate created hereby by reason of the fact that the same Person may
acquire, own or hold, directly or indirectly, (a) this Lease or the leasehold
estate created hereby or any interest in this Lease or such leasehold estate and
(b) the fee estate in the Property.

     28.8 QUIET ENJOYMENT. So long as Tenant shall pay all Rent as the same
becomes due and shall fully comply with all of the terms of this Lease and fully
perform its obligations hereunder, Tenant shall peaceably and quietly have, hold
and enjoy the Property for the Term hereof, free of any claim or other action by
Landlord or anyone claiming by, through or under Landlord, but subject to all
liens and encumbrances of record as of the date hereof or any Landlord's
Encumbrances.

     28.9 NOTICES. All notices, demands, requests, consents, approvals and other
communications hereunder shall be in writing and delivered or mailed (by
registered or certified mail, return receipt requested and postage prepaid),
addressed to the respective parties, as set forth below:


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<PAGE>


If to Landlord:          Golf Trust of America, L.P.
                         14 North Adger's Wharf
                         Charleston, South Carolina 29401
                         Attention: W. Bradley Blair, II
 
With a Copy to:          Nexsen Pruet Jacobs Pollard & Robinson, LLP 
                         200 Meeting Street  
                         Suite 301
                         Charleston, South Carolina 29401
                         Attention: Neil C. Robinson, Jr. Esq.
                                    Matthew J. Norton, Esq.

If to Tenant:            GCR-New Mexico, L.L.C.
                         1000 Golf Course Road
                         Belen, New Mexico 87002

With a copy to:          John Costello, Esq.
                         Wildman Harrold Allen & Dixon
                         275 West Wacker Drive
                         Chicago, Illinois 60606

                         Gregory Perry, Esq.
                         Pedersen & Houpt
                         161 North Clark Street
                         Suite 3100
                         Chicago, Illinois 60601-3224

     28.10 SURVIVAL OF CLAIMS. Anything contained in this Lease to the contrary
notwithstanding, all claims against and liabilities of, Tenant or Landlord
arising prior to any date of termination of this Lease shall survive such
termination.

     28.11 INVALIDITY OF TERMS OR PROVISIONS. If any term or provision of this
Lease or any application thereof shall be invalid or unenforceable, the
remainder of this Lease and any other application of such term or provision
shall not be affected thereby.

     28.12 PROHIBITION AGAINST USURY. If any late charges provided for in any
provision of this Lease are based upon a rate in excess of the maximum rate
permitted by applicable law, the parties agree that such charges shall be fixed
at the maximum permissible rate.

     28.13 AMENDMENTS TO LEASE. Neither this Lease nor any provision hereof may
be changed, waived, discharged or terminated except by an instrument in writing
and in recordable form signed by Landlord and Tenant.


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<PAGE>

     28.14 SUCCESSORS AND ASSIGNS. All the terms and provisions of this Lease
shall be binding upon and inure to the benefit of the parties hereto. All
permitted assignees or sublessees shall be subject to the terms and provisions
of this Lease.

     28.15 TITLES. The headings in this Lease are for convenience of reference
only and shall not limit or otherwise affect the meaning hereof.

     28.16 GOVERNING LAW. This Lease shall be governed by and construed in
accordance with the laws of the State (but not including its conflict of laws
rules).

     28.17 MEMORANDUM OF LEASE. Landlord and Tenant shall, promptly upon the
request of either, enter into a short form memorandum of this Lease, in form and
substance satisfactory to Landlord and suitable for recording under the State,
in which reference to this Lease, and all options contained herein, shall be
made. Tenant shall pay all costs and expenses of recording such Memorandum of
Lease.
 
     28.18 ATTORNEYS' FEES. In the event of any dispute between the parties
hereto involving the covenants or conditions contained in this Lease or arising
out of the subject matter of this Lease, the prevailing party shall be entitled
to recover against the other party reasonable attorneys' fees and court costs.
 
     28.19 NO THIRD PARTY BENEFICIARIES. Nothing in this Lease, express or
implied, is intended to confer any rights or remedies under or by reason of this
Lease on any Person other than the parties to this Lease and their respective
permitted successors and assigns, nor is anything in this Lease intended to
relieve or discharge any obligation of any third Person to any party hereto or
give any third Person any right of subrogation or action against any party to
this Lease.

     28.20 NON-RECOURSE AS TO LANDLORD. Anything contained herein to the
contrary notwithstanding, any claim based on or in respect of any liability of
Landlord under this Lease shall be enforced only against the Property and not
against any other assets, properties or funds of (a) Landlord, (b) any director,
officer, general partner, limited partner, employee or agent of Landlord, or any
general partner of Landlord, any of their respective general partners or
stockholders (or any legal representative, heir, estate, successor or assign of
any thereof), (c) any predecessor or successor partnership or corporation (or
other entity) of Landlord, or any of their respective general partners, either
directly or through either Landlord or their respective general partners or any
predecessor or successor partnership or corporation or their stockholders,
officers, directors, employees or agents (or other entity), or (d) any other
Person affiliated with any of the 


                                       66

<PAGE>

foregoing, or any director, officer, employee or agent of any thereof.

     28.21 NO RELATIONSHIP. Landlord shall in no event be construed for any
purpose to be a partner, joint venturer or associate of Tenant or of any
subtenant, operator, concessionaire or licensee of Tenant with respect to the
Property or any of the Other Leased Properties or otherwise in the conduct of
their respective businesses.

     28.22 RELETTING. If Tenant does not exercise its option to extend or
further extend the Term under Section 3.2 or if an Event of Default occurs, then
Landlord shall have the right during the remainder of the Term then in effect to
advertise the availability of the Property for sale or reletting and to show the
Property to prospective purchasers or tenants or their agents at such reasonable
times as Landlord may elect.

     28.23 YEAR 2000 PROBLEM.  Tenant either has or shall take action necessary
to assure that Tenant's computer based systems are able to operate and
effectively recognize and perform date-sensitive functions involving certain
dates prior to and after December 31, 1999 (the "Year 2000 Problem").  Tenant
reasonably believes that all computer applications (including those of its
suppliers and vendors) that are material to the operation of the Property will
on a timely basis be able to perform properly date-sensitive functions related
to the Year 2000 Problem (that is, be "Year 2000 compliant").  Tenant shall
indemnify and hold Landlord harmless from any and all claims, losses, damages
and liabilities incurred as a result of Tenant's failure to be Year 2000
complaint.

     28.24 NEW MEXICO LAW REGARDING INDEMNIFICATION.  Notwithstanding any other
term or condition of this Lease, to the extent, if at all, Section 56-7-1 NMSA
1978 is applicable to any indemnification obligation set forth in this Lease,
the agreement to indemnify, defend and hold harmless set forth herein shall not
extend to liability, claims, damages, losses or expenses, including attorneys'
fees, arising out of (a) the preparation or approval of maps, drawings,
opinions, reports, surveys, change orders, designs or specifications by the
indemnitee, or the indemnitee's agents or employees; or (b) the giving or the
failure to give directions or instructions by the indemnitee, or the
indemnitee's agents or employees, or such giving or failure to give directions
or instructions is the primary cause of bodily injury to persons or damage to
property.


                         SIGNATURES ON FOLLOWING PAGE

                                       67

<PAGE>



LANDLORD:                               GOLF TRUST OF AMERICA, L.P.
                                        a Delaware limited Partnership

                                        By:  GTA GP, Inc., a Maryland
                                             corporation
                                        Its:  General Partner

                                        By: /s/                       
                                           ------------------------------
                                        Name: W. Bradley Blair, II
                                        Title: President and CEO



                                       68

<PAGE>



TENANT:                                 GCR-NEW MEXICO, L.L.C.,
                                        a Delaware limited liability company


                                        By: GOLF CLASSIC RESORTS, L.L.C.,
                                            a Delaware limited liability
                                            company, sole member

                                        By: /s/              
                                           ------------------------------
                                        Name:  Donald R.  Mohr
                                        Title: Sole Member


                                       69

<PAGE>

                                     EXHIBIT A
                           LEGAL DESCRIPTION OF THE LAND

                            [to be provided from survey] 


                                       A-1

<PAGE>

                                     EXHIBIT B
                              SCHEDULE OF IMPROVEMENTS

     The Land, together with the championship golf course (with agreed to
modifications to the 17th hole) driving range, putting greens, clubhouse,
facilities, snack bar, restaurant, pro-shop, buildings, structures, parking
lots, 2 tennis courts, 2 swimming pools, Seller's interest as lessee in the
Water Rights Lease from Terence J. Mulvihill, improvements, fixtures and other
items of real estate on the Land.

                                           

                                       B-1

<PAGE>

                                     EXHIBIT C
                              OTHER LEASED PROPERTIES
                                          
                                       None.


                                       C-1

<PAGE>

                                     EXHIBIT D
                                  PLEDGE AGREEMENT

     THIS PLEDGE AGREEMENT (this "Agreement") is entered into as of this 29th
day of May, 1998, by and between (i) GOLF TRUST OF AMERICA, L.P., a Delaware
limited partnership, ("Secured Party"), and (ii) GOLF CLASSIC RESORTS, L.L.C., a
Delaware limited liability company ("Pledgor").

                                     RECITALS:

     This Agreement is entered into based on the following understandings:

     A. Pursuant to that certain Contribution and Leaseback Agreement (the
"Contribution Agreement") dated as of May 29, 1998, by and between Secured Party
and Pledgor, Pledgor transferred to Secured Party all of its right, title and
interest in and to certain real and personal property as described in the
Contribution Agreement (collectively, the "Property").

     B. Pursuant to that certain lease dated as of May 29, 1998,
(the "Lease") Secured Party leased its interest in the Property to GCR-New
Mexico, L.L.C., a Delaware limited liability company, an affiliate of Pledgor
("Tenant").

     C. As a condition to (i) Secured Party entering into the Lease with Tenant;
and (ii) Secured Party entering into the Contribution Agreement with Pledgor,
Secured Party has required that Pledgor pledge the Pledged Owner's Shares (as
hereinafter defined) as security for the Obligations (as hereinafter defined).

     NOW, THEREFORE, for and in consideration of the mutual covenants contained
herein and for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Secured Party and Pledgor agree as follows:

     1. DEFINITIONS

     (a) Capitalized terms not otherwise defined herein shall have the meaning
given to them in the Lease.

     (b) The following terms shall have the indicated meanings:

     "AGREEMENT" has the meaning set forth in the introductory Paragraph of this
Agreement.

     "CONTRIBUTION AGREEMENT" has the meaning set forth in Recital A of this
Agreement.


                                       D-1

<PAGE>

     "EVENT OF DEFAULT" has the meaning set forth in Section 14(a) of this
Agreement.

     "INDEMNITY EVENT" has the meaning set forth in Section 2(a) of this
Agreement.

     "LEASE" has the meaning set forth in Recital B of this Agreement.

     "OBLIGATIONS" has the meaning set forth in Section 2(a) of this Agreement.

     "PLEDGED OWNER'S SHARES" has the meaning set forth in Section 2(a) of this
Agreement.

     "PLEDGOR" has the meaning set forth in the introductory Paragraph of this
Agreement.

     "PLEDGOR'S GUARANTY" has the meaning set forth in Section 3(a) of this
Agreement.

     "PROPERTY" has the meaning set forth in Recital A of this Agreement.

     "SECURED PARTY" has the meaning set forth in the introductory Paragraph of
this Agreement.

     "SECURITY FUND" has the meaning set forth in Section 2(a) of this
Agreement.

     "TENANT" has the meaning set forth in Recital B of this Agreement.

     NOW, THEREFORE, for and in consideration of the mutual covenants contained
herein and for other valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Secured Party and Pledgor hereby agree as
follows:


     2. GRANT OF SECURITY INTEREST.

     (a) As security for the payment and performance of all obligations and
liabilities (including, without limitation, indemnities, fees and interest
thereon) of Pledgor, Tenant or any of Pledgor's direct or indirect subsidiaries
arising under: (i) Pledgor's obligation to indemnify Secured Party for breaches
of the representations and warranties made by Pledgor pursuant to Article 3 of
the Contribution Agreement (which obligations shall expire one (1) year from the
date of the Contribution Agreement); (ii) the Lease; (iii) the Pledgor's
Guaranty pursuant to Section 3 of this Agreement and all other provisions of
this Agreement; or (iv) in 


                                       D-2
<PAGE>

connection with any agreement, instrument or extension contemplated by the 
foregoing documents (collectively, the "Obligations"), Pledgor hereby 
pledges, hypothecates and grants to Secured Party a first and prior security 
interest in 26,357 Owner's Shares (the "Pledged Owner's Shares") which 
reflects a value of $880,000.00 which was priced at the closing trading 
average for the previous five (5) business days prior to May 30, 1998 (which 
shall include any increase or decrease in the Pledged Owner's Shares, in 
accordance with the formula set forth on Exhibit D-1 attached hereto), 
together with, after an occurrence and during the continuance of an Event of 
Default hereunder or if any representation or warranty in Article 3 of the 
Contribution Agreement is breached by Pledgor or proves to be false, as 
applicable (an "Indemnity Event"), any and all proceeds thereof, including 
without limitation, any and all dividends, income, interest and distributions 
earned from or attributable to the investment or deposit of the Pledged 
Owner's Shares (the Pledged Owner's Shares, together with all of the 
foregoing being collectively referred to herein as the "Security Fund"). 
Pledgor shall have the right to pledge, as substitute collateral, cash or 
other security that is acceptable to Secured Party in its sole and absolute 
discretion. Prior to (x) any Event of Default under the Lease (and after the 
cure or satisfaction thereof by Tenant or Pledgor, at its sole election), (y) 
an Indemnity Event, or (z) an Event of Default (defined below) all dividends, 
income, interest and/or distributions earned from or attributable to the 
investment or deposit of the Security Fund shall be payable to Pledgor; 
following an Event of Default under the Lease such amounts shall be added to 
and become a part of the Security Fund and shall only be disbursed in 
accordance with the terms of this Agreement. By its execution of this 
Agreement, Pledgor acknowledges that it has delivered the Pledged Owner's 
Shares to Secured Party as required by this Agreement. The word "Obligations" 
is used herein in its most comprehensive sense and includes without 
limitation any and all debts, obligations and liabilities of Pledgor, Tenant 
or any of Pledgor's direct or indirect subsidiaries, arising as a result of a 
breach of any of the representations and warranties made by Pledgor pursuant 
to Article 3 of the Contribution Agreement, the Lease or this Agreement, now 
or hereafter made, incurred or created, whether voluntary or involuntary and 
however arising, whether due or not due, absolute or contingent, liquidated 
or unliquidated, determined or undetermined, and whether Pledgor, Tenant or 
any of Pledgor's direct or indirect subsidiaries may be liable individually 
or jointly, or whether recovery upon such Obligations may be or hereafter 
become unenforceable.  The Pledged Owner's Shares shall be released in 
accordance with the provisions of Exhibit D-1 attached hereto (so long as no 
Event of Default exists) or upon expiration of the Lease and fulfillment of 
the Obligations.


                                       D-3

<PAGE>

     (b) If the Pledgor shall become entitled to receive or shall receive, in
connection with any of the Security Fund, any:

     (i) Stock certificate, including, without limitation, any certificate
representing a stock dividend or in connection with any increase or reduction of
capital, reclassification, merger, consolidation, sale of assets, combination of
shares, stock split, spin-off or split-off;

     (ii) Option, warrant, or right, whether as an addition to or in
substitution or in exchange for any of the Security Fund, or otherwise;

     (iii) Dividend or distribution payable in property, including securities
issued by a person other than the issuer of any of the Pledged Owner's Shares;
or

     (iv) Dividends or distributions of any sort, then, except for dividends
received by Pledgor at such time as there does not exist an uncured Event of
Default with respect to Pledgor, Pledgor shall accept the same as the agent of
Secured Party, in trust for Secured Party, and shall deliver them forthwith to
Secured Party, in the exact form received, with, as applicable, the Pledgor's
endorsement when necessary, or appropriate stock powers duly executed in blank
by Pledgor, to be held by Secured Party, subject to the terms hereof, as part of
the Security Fund.

     (c) Pledgor shall execute and deliver to Secured Party such financing and
continuation statements covering the Security Fund and take such other actions
as Secured Party may from time to time require to perfect and continue the
perfection of Secured Party's security interest in the Security Fund.

     3. GUARANTY OF OBLIGATIONS

     (a) Pledgor irrevocably and unconditionally guarantees the full and prompt
payment when due of the Obligations and the due performance and compliance with
any of the terms of the Lease ("Pledgor's Guaranty").

     (b) Pledgor hereby waives notice of acceptance of this Agreement and notice
of any liability to which it may apply, and waives presentment, demand of
payment, protest, notice of dishonor or nonpayment of any such liability, suit
or taking of other action by Secured Party against Pledgor or Tenant.

     (c) Pledgor's Guaranty shall not be released, modified, impaired or
otherwise affected by the following (whether or not Pledgor shall have had
notice or knowledge of the same): (i) any extension or indulgence by Secured
Party in respect to the performance of or compliance with the Obligations; (ii)
any 


                                       D-4

<PAGE>

failure, omission or inability of Secured Party to enforce any right, power 
or remedy in respect to the Lease, the Contribution Agreement or this 
Agreement; (iii) any amendment of the Lease or the Contribution Agreement; 
(iv) any receipt of security including, without limitation, the Security 
Fund, or any sale, exchange, release or subordination of security held by 
Secured Party with respect to the Obligations; (v) any release from any 
liability of any person liable under the terms of the Lease, the Contribution 
Agreement or this Agreement or any other guarantor; (vi) any limitation or 
impairment of Secured Party's remedies against Tenant or any other party 
liable under the terms of the Lease, the Contribution Agreement or this 
Agreement; (vii) any action or inaction of Secured Party with respect to the 
Lease, the Contribution Agreement or this Agreement; (viii) any change in the 
name or identity of Tenant or any other person or entity referred to in this 
Agreement; (ix) the invalidity or unenforceability of the Lease or the 
Contribution Agreement; or (x) the death or incapacity of Tenant or any other 
person or entity referred to in this Agreement.

     (d) If all or any portion of the Obligations of Pledgor as described in
Section 3(a) of this Agreement are paid or performed, the responsibilities of
Pledgor pursuant to Pledgor's Guaranty shall continue and remain in full force
and effect in the event that all or any part of such payment(s) or
performance(s) is avoided or recovered directly or indirectly from Secured Party
as a preference, fraudulent transfer or otherwise, irrespective of payment in
full of all sums due pursuant to such obligations.

     (e) The liability of Pledgor pursuant to Pledgor's Guaranty is not
conditioned or contingent upon the genuineness, validity, regularity or
enforceability of the Lease or the Contribution Agreement or the pursuit by
Secured Party of any remedies which it now has or may hereafter have with
respect thereto, at law, in equity or otherwise, and Pledgor hereby waives any
and all benefits and defenses that it may have to the contrary and agrees that
by doing so Pledgor shall be liable even if Tenant had no liability at the time
of the execution of the Lease or thereafter ceases to be liable. Pledgor further
agrees that by doing so Pledgor's liability may be larger in amount and more
burdensome than that of Tenant, notwithstanding any benefits or defenses that
Pledgor may have to the contrary. Pledgor agrees that its liability hereunder
shall continue and shall not be limited or affected in any way by an impairment
or any diminution in loss of value in any security or collateral for the ease
(including, but not limited to the Security Fund, the leased premises or any
personal property or fixtures thereon), whether caused by hazardous substance or
otherwise, or Secured Party's failure to perfect a security interest in the
Security Fund.


                                       D-5
<PAGE>

     (f) Pledgor hereby waives: (i) all notices to Pledgor, to Tenant, or to any
other person, including, but not limited to, the creation, renewal, extension,
assignment, modification or accrual of any of the Obligations and enforcement of
any right or remedy with respect thereto, and notice of any other matters
relating thereto; (ii) demand of payment, presentation and protest; (iii) any
right to require Secured Party to apply to any default the Security Fund or
other security it may hold under the Lease; (v) notice of any sale of personal
property security of Tenant held by Secured Party; (vi) any and all statutes of
limitations affecting Pledgor's and/or Tenant's liability under this Agreement
or the Lease, as applicable, and/or the enforcement of this Agreement or the
Lease, as applicable; and (vii) all principles or provisions of law which
conflict with the terms of this Agreement. Pledgor further agrees that Landlord
may enforce Pledgor's Guaranty upon the occurrence of a default under the Lease,
notwithstanding any dispute between Secured Party and Tenant or Pledgor with
respect to the existence of said default or the payment or performance of the
Obligations or any counterclaim, set-off or other claim which Tenant or Pledgor
may allege against Secured Party with respect thereto. Pledgor also agrees that
upon the abandonment of the Property by Tenant, even if accepted by Secured
Party, or the eviction of Tenant, Pledgor shall remain liable for future
payments of rent, subject to Secured Party's reasonable efforts to mitigate
damages.

     (g) Pledgor hereby waives any and all benefits and defenses it may have
with respect to the right to require Landlord to: (i) proceed against Tenant or
any other guarantor of the Obligations; (ii) proceed against or exhaust any
security or collateral Secured Party may hold, including without limitation, the
Security Fund; or (iii) pursue any other right or remedy for Pledgor's benefit;
and Pledgor agrees that Secured Party may proceed against Pledgor for the
Obligations without taking any action against Tenant or any other guarantor and
without proceeding against or exhausting any security or collateral Secured
Party holds, including, without limitation, the Security Fund. Pledgor agrees
that Secured Party may unqualifiedly exercise in its sole discretion any or all
rights and remedies available to it against Tenant or any other guarantor
without impairing Secured Party's rights and remedies in enforcing Pledgor's
Guaranty, under which Pledgor's liabilities shall remain independent and
unconditional. Pledgor agrees that Secured Party's exercise of certain of such
rights or remedies may affect or eliminate Pledgor's right of subrogation or
recovery against Tenant and that, as a result thereof, Pledgor may incur a
partially or totally nonreimbursable liability under Pledgor's Guaranty.

     (h) Pledgor hereby agrees that Pledgor shall have no right of subrogation
or reimbursement against Tenant or any right of contribution against any other
guarantor unless and until all rentals and all other sums due under the Lease
have been paid in 


                                       D-6

<PAGE>

full and all of the Obligations have been satisfied and waives any benefits 
or defenses that Pledgor may have to the contrary. Pledgor further agrees 
that, to the extent of the waiver of Pledgor's rights of subrogation, 
reimbursement and contribution as set forth herein is found by a court of 
competent jurisdiction to be void or voidable for any reason, any rights of 
subrogation or reimbursement Pledgor may have against Tenant shall be junior 
and subordinate to any rights Secured Party may have against Tenant, and any 
rights of contribution Pledgor may have against any other guarantor shall be 
junior and subordinate to any rights Secured Party may have against such 
other guarantor. Pledgor also agrees that Pledgor's Guaranty is in addition 
to the guaranty of any other guarantor and any and all of Pledgor's other 
guarantees of Tenant's obligations or liabilities to Secured Party and that 
this Guaranty shall in no way limit or lessen any other liability, however 
arising, that Pledgor may have for the payment of any other indebtedness of 
Tenant to Secured Party.

     (i) To the extent any dispute exists at any time (whether or not this
Agreement or the Lease shall have previously terminated) between or among Tenant
and/or any other guarantor as to any rights to subrogation, reimbursement,
contribution or otherwise, Pledgor agrees to indemnify, defend and hold Secured
Party harmless from and against any loss, damage, claim, demand, cost or any
other liability (including, without limitation, reasonable attorneys' fees and
costs) Secured Party may suffer as a result of such dispute.

     (j) The obligations of Pledgor under Pledgor's Guaranty shall not be
altered, limited or affected by any case, voluntary or involuntary, involving
the bankruptcy, insolvency, receivership, reorganization, liquidation or
arrangement of Tenant or by any defense which Tenant may have by reason of the
order, decree or decision of any court or administrative body resulting from any
such case. Secured Party shall have the sole right to accept or reject any plan
on behalf of Pledgor proposed in such case and to take any other action which
Pledgor would be entitled to take, including, without limitation, the decision
to file or not file a claim. Pledgor acknowledges and agrees that any payment
which accrues with respect to Tenant's obligations under the Lease (including,
without limitation, the payment of rent) after the commencement of any such
proceeding (or, if any such payment ceases to accrue by operation of law by
reason of the commencement of said proceeding, such payment as would have
accrued if said proceedings had not been commenced) shall be included in the
Obligations because it is the intention of the parties that said Obligations be
determined without regard to any rule or law or order which may relieve Tenant
of any of its obligations under the Lease. Pledgor hereby permits any trustee in
bankruptcy, receiver, debtor-in-possession, assignee for the benefit of
creditors or similar person to pay Secured Party, or allow the claim of Secured


                                       D-7

<PAGE>

Party in respect of, any such payment accruing after the date on which such
proceeding is commenced. Pledgor assigns to Secured Party Pledgor's right to
receive any payments from any trustee in bankruptcy, receiver, debtor-in-
possession, assignee for the benefit of creditors or similar person by way of
dividend, adequate protection payment or otherwise.

     4. CONTINUING AGREEMENT; REVOCATION; OBLIGATION UNDER OTHER AGREEMENTS.
This is a continuing agreement and all rights, powers and remedies hereunder
shall apply to all past, present and future obligations of Tenant or Pledgor to
Secured Party under the Lease or the Contribution Agreement. This Agreement
shall not terminate except in accordance with its terms or Secured Party's
written release of Pledgor from its Obligations under this Agreement.

     5. OBLIGATIONS INDEPENDENT: SEPARATE ACTIONS; WAIVER OF STATUTE OF
LIMITATIONS: REINSTATEMENT OF LIABILITY. The Obligations hereunder are
independent of the obligations of Tenant and Pledgor (including, without
limitation, those obligations made pursuant to the Contribution Agreement), and
a separate action or actions may be brought and prosecuted against Pledgor
hereunder whether action is brought against Tenant, Pledgor (under the
Contribution Agreement), or any other person, or whether Tenant or any other
person is joined in any such action or actions. Pledgor acknowledges that there
are no conditions precedent to the effectiveness of this Agreement, and that
this Agreement is in full force and effect and is binding on Pledgor as of the
date written below, regardless of whether Secured Party obtains additional
collateral or any guaranties from others or takes any other action contemplated
by Pledgor. Pledgor waives the benefit of any statute of limitations affecting
Pledgor's liability hereunder or the enforcement thereof, and Pledgor agrees
that any payment of any Obligations or other act which shall toll any statute of
limitations applicable thereto shall similarly operate to toll such statute of
limitations applicable to Pledgor's liability under this Agreement. The
liability of Pledgor under this Agreement shall be reinstated and revived and
the rights of Secured Party shall continue if and to the extent for any reason
any amount at any time paid on account of the Obligations is rescinded or must
be otherwise restored by Secured Party, whether as a result of any proceedings
in bankruptcy, insolvency, reorganization or otherwise, all as though such
amount had not been paid. The determination as to whether any amount so paid
must be rescinded or restored shall be made by Secured Party in its sole
discretion; provided, however, that if Secured Party chooses to contest any such
matter at the request of Pledgor, Pledgor agrees to indemnify and hold Secured
Party harmless from and against all costs and expenses, including reasonable
attorneys' fees, expended or incurred by Secured Party in connection therewith,
including without limitation, in any litigation with respect thereto.


                                       D-8

<PAGE>

     6. REPRESENTATIONS AND WARRANTIES.

     (a) Pledgor represents and warrants to Secured Party that: (i) Pledgor is
the owner, directly or indirectly, and has possession or control of the Pledged
Owner's Shares; (ii) Pledgor has the right to pledge the Pledged Owner's Shares;
(iii) the Pledged Owner's Shares are genuine, free from liens, adverse claims,
setoffs, default, prepayment, defenses and conditions precedent of any kind or
character, except as previously disclosed to Secured Party in writing by
Pledgor; (iv) specifically with respect to Pledged Owner's Shares consisting of
investment securities, instruments, chattel paper, documents, contracts,
insurance policies or any like property, all persons appearing to be obligated
thereon have authority and capacity to contract and are bound as they appear to
be, and the same comply with applicable laws concerning form, content and manner
of preparation and execution) (v) all statements contained herein and, where
applicable, in the Pledged Owner's Shares are true and complete; and (vi) no
financing statement covering any of the Pledged Owner's Shares and naming any
secured party other than Secured Party, is on file in any public office.

     (b) Pledgor further represents and warrants to Secured Party that with
respect to the Pledged Owner's Shares securing Tenant's obligations under the
Lease pursuant to this Agreement: (i) such Pledged Owner's Shares are so pledged
at Tenant's request; (ii) Secured Party has made no representation to Pledgor as
to the creditworthiness of Tenant; and (iii) Pledgor has established adequate
means of obtaining from Tenant on a continuing basis financial and other
information pertaining to Tenant's financial condition. Pledgor agrees to keep
adequately informed by such means of any facts, events or circumstances which
might in any way affect Pledgor's risks hereunder, and Pledgor further agrees
that Secured Party shall have no obligation to disclose to Pledgor any
information or material about Tenant which is acquired by Secured Party in any
manner. Pledgor further warrants and represents that it has reviewed and
approved copies of the Lease and is fully informed of the remedies that Secured
Party may pursue under the Lease or at law or in equity, with or without notice
to Pledgor, in the event of a default under the Lease.

     (c) Pledgor understands that but for Pledgor's pledge of the Pledged
Owner's Shares and the other agreements contained herein, Secured Party would
not enter into the Lease with Tenant or the Contribution Agreement and that the
Security Fund pledged pursuant to this Agreement will serve as collateral for
the Lease and the Contribution Agreement on the terms and conditions of this
Agreement.

     7. COVENANTS OF PLEDGOR.


                                       D-9

<PAGE>

     (a) Pledgor agrees in general: (i) to indemnify Secured Party against all
losses, claims, demands, liabilities and expenses of every kind caused by
property subject hereto; (ii) to pay all costs and expenses, including
reasonable attorneys' fees, incurred by Secured Party any time after the
occurrence of an Event of Default under the Lease or as such costs and expenses
relate to a breach by Pledgor of any representation or warranty contained in
Article 3 of the Contribution Agreement, in the realization, enforcement and
exercise of its rights, powers and remedies hereunder; (iii) to permit Secured
Party to exercise its powers; (iv) to execute and deliver such documents as
Secured Party deems necessary to create, perfect and continue the security
interests contemplated hereby; and (v) not to change its chief place of business
or the place where Pledgor keeps any records concerning the Pledged Owner's
Shares without first giving Secured Party written notice of the address to which
Pledgor is moving same.

     (b) Pledgor agrees with regard to the Security Fund: (i) not to permit any
lien on the Security Fund except in favor of Secured Party; (ii) not to withdraw
any funds from any deposit account pledged to Secured Party hereunder without
Secured Party's prior written consent; (iii) not to sell, hypothecate or
otherwise dispose of any of the Pledged Owner's Shares or any interest therein,
without the prior written consent of Secured Party which consent shall not be
unreasonably withheld and provided further that Pledgor may convey or otherwise
dispose of the Pledged Owner's Shares subject to Secured Party's written
approval provided Pledgor substitutes collateral of an equal value which is
approved by Secured Party (the Secured Party acknowledges that the junior lien
of the Pledged Owner's Shares to Terence J. Mulvihill does not constitute a
hypothecation as described in this subsection); (iv) to keep, in accordance with
generally accepted accounting principles, complete and accurate records
regarding all Pledged Owner's Shares and to permit Secured Party to inspect the
same at any reasonable time; (v) if requested by Secured Party following an
Event of Default under the Lease or an Indemnity Event, to receive and use
reasonable diligence to collect proceeds from the Pledged Owner's Shares, in
trust and as part of the Security Fund to be held in accordance with Section
2(a) above; (vi) not to commingle Pledged Owner's Shares with other property;
(vii) to provide any service and do any other acts or things necessary to keep
the Pledged Owner's Shares free and clear of all defenses, rights of offset and
counterclaims; and (viii) if the Pledged Owner's Shares consists of securities
and so long as no Event of Default or Indemnity Event exists, to vote said
securities and to give consents, waivers and ratifications with respect thereto,
provided that no vote shall be cast or consent, waiver or ratification given or
action taken which would impair Secured Party's interest in the Security Fund or
be inconsistent with or violate any provisions of this Agreement.


                                       D-10

<PAGE>

     8. POWERS OF SECURED PARTY. Pledgor appoints Secured Party its true
attorney in fact to perform any of the following powers, which are coupled with
an interest and are irrevocable until this Agreement has been terminated
pursuant to its terms and may be exercised from time to time by Secured Party's
officers and employees: (a) to perform any obligation of Pledgor hereunder in
Pledgor's name or otherwise; (b) to notify any person obligated on any security,
instrument or other document subject to this Agreement of Secured Party's rights
hereunder; (c) to collect by legal proceedings or otherwise all dividends,
interest, principal or other sums now or hereafter payable upon or on account of
the Security Fund; (d) to enter into any extension, reorganization, deposit,
merger or consolidation agreement, or any other agreement relating to or
affecting the Security Fund and in connection therewith to deposit or surrender
control of the Security Fund to accept other property in exchange for the
Security Fund, and to do and perform such acts and things as Secured Party may
deem proper, with any money or property received in exchange for the Security
Fund at Secured Party's option, to be applied to the Obligations or held by
Secured Party under this Agreement; (e) to make any compromise or settlement
Secured Party deems desirable or proper in respect of the Security Fund; (f) to
insure, process and preserve the Security Fund; (g) to exercise all rights,
powers and remedies which Pledgor would have, but for this Agreement, under all
the Pledged Owner's Shares subject to this Agreement; (h) to do all acts and
things and execute all documents in the name of Pledgor or otherwise that are
deemed by Secured Party as necessary, proper or convenient in connection with
the preservation, perfection or enforcement of its rights hereunder; and (i) to
execute and file in Pledgor's name any financing statements and amendments
thereto required to perfect Secured Party's security interest hereunder;
provided, however, that until the occurrence and only during the continuation of
an Event of Default or an Indemnity Event shall Secured Party have the right to
exercise the power of attorney for the purposes described in paragraphs (a),
(c), (d), (e), (f), (g), or (h). If an Event of Default or Indemnity Event has
occurred and is continuing, any or all of the Security Fund consisting of
securities may be registered, without notice, in the name of Secured Party or
its nominee, and thereafter Secured Party or its nominee may exercise, without
notice, all voting and partnership rights at any meeting of the partners of the
issuer thereof, any and all rights of conversion, exchange or subscription, or
any other rights, privileges or options pertaining to any Pledged Owner's Shares
all as if it were the absolute owner thereof. The foregoing shall include,
without limitation, the right of Secured Party or its nominee to exchange, at
its discretion, any and all Pledged Owner's Shares upon the merger,
consolidation, reorganization, recapitalization or other readjustment of the
issuer thereof, or upon the exercise by the issuer thereof or Secured Party of
any right, privilege or option pertaining to any Pledged Owner's Shares and in
connection therewith, the right to 


                                       D-11

<PAGE>

deposit and deliver any and all of the Pledged Owner's Shares with any 
committee, depository, transfer agent, registrar or other designated agent 
upon such terms and conditions as Secured Party may determine. All of the 
foregoing rights, privileges or options may be exercised without liability 
except to account for property actually received by Secured Party. Secured 
Party shall have no duty to exercise any of the foregoing, or any other 
rights, privileges or options with respect to the Pledged Owner's Shares and 
shall not be responsible for any failure to do so or delay in so doing.

     9. CASH COLLATERAL ACCOUNT. Any money received by Secured Party in respect
of the Security Fund will be retained in an interest bearing cash collateral
account and the same shall, for all purposes, be deemed part of the Security
Fund hereunder.

     10. SECURED PARTY'S CARE AND DELIVERY OF PLEDGED OWNER'S SHARES. Secured
Party's obligation with respect to the Security Fund in its possession shall be
strictly limited to the duty to exercise reasonable care in the custody and
preservation of the Security Fund, and such duty shall not include any
obligation to ascertain or to initiate any action with respect to or to inform
Pledgor of maturity dates, conversion, call or exchange rights, or offers to
purchase the Pledged Owner's Shares or any similar matters, notwithstanding
Secured Party's knowledge of the same. Secured Party shall have no duty to take
any steps necessary to preserve the rights of Pledgor against prior parties, or
to initiate any action to protect against the possibility of a decline in the
market value of the Pledged Owner's Shares. Secured Party shall not be obligated
to take any actions with respect to the Pledged Owner's Shares requested by
Pledgor unless such request is made in writing and Secured Party determines, in
its sole discretion, that the requested action would not unreasonably jeopardize
the value of the Pledged Owner's Shares as security for the Obligations. Secured
Party may at any time deliver the Security Fund, or any part thereof, to
Pledgor, and the receipt thereof by Pledgor shall be a complete and full
acquittance for the Security Fund so delivered, and Secured Party shall
thereafter be discharged from any liability or responsibility therefor.

     11. PLEDGOR'S WAIVERS.

     (a) Pledgor waives any right to require Secured Party to: (i) proceed
against any person, including Tenant or Pledgor under the Contribution
Agreement; (ii) proceed against or exhaust any security held from Tenant; (iii)
give notice of the terms, time and place of any public or private sale of
personal property security held from Tenant or any other person or otherwise
comply with any other provisions of Section 9-504 Uniform Commercial Code; (iv)
pursue any other remedy in Secured Party's power; or (v) make any presentments
or demands for performance, or give any notices of 


                                       D-12

<PAGE>

nonperformance, protests, notices of protest or notices of dishonor in 
connection with any obligations or evidences of indebtedness held by Secured 
Party as security or which constitute in whole or in part the Obligations 
secured hereunder, or in connection with the creation of new or additional 
Obligations.

     (b) Pledgor waives any defense arising by reason of: (i) any disability or
other defense of Tenant, Pledgor or any other person; (ii) the cessation or
limitation from any cause whatsoever, other than payment in full, of the
Obligations of Tenant, Pledgor or any other person; (iii) any lack of authority
of any officer, director, partner, agent or any other person acting or
purporting to act on behalf of Tenant or Pledgor which is a corporation,
partnership or other type of entity, or any defect in the formation of Tenant or
Pledgor; (iv) any act or omission by Secured Party which directly or indirectly
results in or aids the discharge of Tenant or Pledgor or any Obligations by
operation of law or otherwise; or (v) any modification of the Obligations, in
any form whatsoever, including any modification made after revocation hereof to
any Obligations incurred prior to such revocation, and including, without
limitation, the renewal, extension, acceleration or other change in time for
payment of the Obligations, or other change in the terms of the Obligations, or
any part thereof. Until all Obligations shall have been paid in full, Pledgor
shall have no right of subrogation, and Pledgor waives any defense Pledgor may
have based upon an election of remedies by Secured Party which destroys
Pledgor's subrogation rights or Pledgor's rights to proceed against Tenant for
reimbursement, including without limitation, any loss of rights Pledgor may
suffer by reason of any rights, powers or remedies of Tenant in connection with
any anti-deficiency laws or any other laws limiting, qualifying or discharging
Tenant's Obligations.  Until all Obligations of Tenant to Secured Party shall
have been paid in full, Pledgor further waives any right to enforce any remedy
which Secured Party now has or may hereafter have against Tenant or any other
person, and waives any benefit of, or any right to participate in, any security
whatsoever now or hereafter held by Secured Party.

     12. AUTHORIZATIONS TO SECURED PARTY. Pledgor authorizes Secured Party
either before or after revocation hereof, without notice or demand and without
affecting Pledgor's liability hereunder, from time to time to: (a) alter,
compromise, renew, extend, accelerate or otherwise change the time for payment
of, or otherwise change the terms of the Obligations or any part thereof; (b)
take and hold security, other than the Pledged Owner's Shares, for the payment
of the Obligations or any part thereof and exchange, enforce, waive and release
the Pledged Owner's Shares, or any part thereof, or any such other security; (c)
apply the Pledged Owner's Shares or any other security and direct the order or
manner of sale thereof, including without limitation, a non-judicial sale
permitted by the terms of this Agreement, as Secured Party in its 


                                       D-13

<PAGE>

discretion may determine; (d) release or substitute any one or more of the 
endorsers or guarantors of the Obligations, or any part thereof, or any other 
parties thereto; and (e) apply payments received by Secured Party from Tenant 
or Pledgor to any Obligations of Tenant or Pledgor to Secured Party, in such 
order as Secured Party shall determine in its sole discretion, whether or not 
any such Obligations is covered by this Agreement, and Pledgor hereby waives 
any provision of law regarding application of payments which specifies 
otherwise.

     13. PAYMENT OF TAXES, CHARGES, LIENS AND ASSESSMENTS. Pledgor agrees to
pay, prior to delinquency, all taxes, charges, liens and assessments against the
Security Fund, and upon the failure of Pledgor to do so, Secured Party at its
option may pay any of them and shall be the sole judge of the legality or
validity thereof and the amount necessary to discharge the same. Any such
payments made by Secured Party shall be obligations of Pledgor to Secured Party,
due and payable immediately upon demand, together with interest at a rate
determined in accordance with the provisions of Section 17 of this Agreement,
and shall be secured by the Security Fund, subject to all terms and conditions
of this Agreement.

     14. EVENTS OF DEFAULT. The occurrence of any of the following shall
constitute an "Event of Default" under this Agreement: (a) any default in the
payment or performance of any obligation, or any defined event of default, after
any applicable cure or grace period under the Lease which has not been cured by
pledgor within ten (10) days of the date such cure period of Tenant expired; or
(b) any representation or warranty made by Pledgor herein shall prove to be
incorrect in any material respect when made; or (c) an Indemnity Event; or (d)
Pledgor shall fail to observe or perform any obligation or agreement contained
herein after Secured Party has provided written notice describing such failure
and Pledgor has failed within thirty (30) days of receipt of such notice to cure
such failure, provided if such cure cannot be completed within such thirty (30)
day period, then such cure period shall be extended for so long as Pledgor is
diligently prosecuting such cure to completion up to a maximum of ninety (90)
days.

     15. REMEDIES. Upon the occurrence of any Event of Default, Secured Party
shall have and may exercise without demand any and all rights, powers,
privileges and remedies granted to a secured party upon default under the
Uniform Commercial Code or otherwise provided to Secured Party by law. All
rights, powers, privileges and remedies of Secured Party shall be cumulative.
Secured Party may exercise its right of set off with respect to the Obligations
in the same manner as if the Obligations were unsecured. No delay, failure or
discontinuance of Secured Party in exercising any right, power, privilege or
remedy hereunder shall affect or operate as a waiver of such right, power,
privilege or 


                                       D-14

<PAGE>

remedy; nor shall any single or partial exercise of any such right, power, 
privilege or remedy preclude, waive or otherwise affect any other or further 
exercise thereof or the exercise of any other right, power, privilege or 
remedy. Any waiver, permit, consent or approval of any kind by Secured Party 
of any default hereunder, or any such waiver of any provisions or conditions 
hereof, must be in writing and shall be effective only to the extent set 
forth in writing. While an Event of Default exists: (a) Secured Party may, at 
any time and at Secured Party's sole option, liquidate any time deposits 
pledged to Secured Party hereunder, whether or not said time deposits have 
matured and notwithstanding the fact that such liquidation may give rise to 
penalties for early withdrawal of funds; (b) Secured Party may appropriate 
the Security Fund and apply all proceeds toward repayment of the Obligations 
in such order as Secured Party may from time to time elect or, at Secured 
Party's sole option, place any proceeds in a cash collateral account; and (c) 
at Secured Party's request, Pledgor will assemble and deliver all Pledged 
Owner's Shares not already in the possession of Secured Party, and books and 
records pertaining thereto, to Secured Party at a reasonably convenient place 
designated by Secured Party. It is agreed that public or private sales, for 
cash or on credit, to a wholesaler or retailer or investor, or user of 
property of the types subject to this Agreement, or public auction, are all 
commercially reasonable since differences in the sales prices generally 
realized in the different kinds of sales are ordinarily offset by the 
differences in the costs and credit risks of such sales. For any part of the 
Security Fund consisting of securities, Secured Party shall be under no 
obligation to delay a sale of any portion thereof for the period of time 
necessary to permit the issuer thereof to register such securities for public 
sale under any applicable state or federal law, even if the issuer thereof 
would agree to do so.

     16. DISPOSITION OF PLEDGED OWNER'S SHARES. Secured Party shall not transfer
all or any part of the Pledged Owner's Shares or Security Fund except in
connection with the exercise of remedies as provided in Section 15 above. Any
proceeds of any disposition of any of the Pledged Owner's Shares or any part
thereof, shall be applied by Secured Party to the payment of expenses incurred
by Secured Party in connection with the foregoing, including reasonable
attorneys' fees, and the balance of such proceeds shall be applied by Secured
Party toward the payment of the Obligations in such order of application as
Secured Party may from time to time elect.

     17. COSTS. EXPENSES AND ATTORNEYS' FEES. Pledgor shall pay to Secured Party
immediately upon demand the full amount of all payments, advances, charges,
costs and expenses, including reasonable attorneys' fees incurred by Secured
Party after the occurrence and during the continuance of any Event of Default in
exercising any right, power, privilege or remedy conferred by this Agreement or
in the enforcement thereof, including any of the 


                                       D-15

<PAGE>

foregoing incurred in connection with any bankruptcy proceeding relating to 
Pledgor or the valuation of the Pledged Owner's Shares including without 
limitation, the seeking of relief from or modification of the automatic stay 
or the negotiation and drafting of a cash collateral order. All of the 
foregoing shall be paid to Secured Party by Pledgor with interest at a rate 
per annum equal to the lesser of ten percent (10%) or the maximum rate 
permitted by law.

     18. GOVERNING LAW; SUCCESSORS. ASSIGNS. This Agreement shall be governed by
and construed in accordance with the laws of the state in which the Property is
located, and shall be binding upon and inure to the benefit of the heirs,
executors, administrators, legal representatives, successors and assigns of the
parties.

     19. SEVERABILITY OF PROVISIONS. If any provision of this Agreement shall be
held to be prohibited by or invalid under applicable law, such provision shall
be ineffective only to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or any remaining provisions of this
Agreement.

     20. NON-RECOURSE. The obligations of Pledgor hereunder with respect to the
Lease and the obligations of Tenant thereunder are specifically non-recourse to
Pledgor except to the extent of the Pledged Owner's Shares. In no event shall
Pledgor or any assets of Pledgor or any member, manager, or affiliate of
Pledgor, (except for Tenant) be liable for a default by Tenant under the Lease
except to the extent of the Pledged Owner's Shares then pledged to Secured
Party.


                                       D-16

<PAGE>

     IN WITNESS WHEREOF, this Agreement has been duly executed as of the date
first written above.

                                        PLEDGOR

     
________________________                GOLF CLASSIC RESORTS, L.L.C.,
                                        a Delaware limited liability
________________________                company

                                        By: 
                                            ----------------------------
                                        Name:  Donald R. Mohr
                                        Title: Sole Member


                                       D-17

<PAGE>

                                        SECURED PARTY

                                        GOLF TRUST OF AMERICA, L.P.
                                        a Delaware limited partnership

                                        GTA GP, Inc.
                                        a Maryland corporation

                                        Its: General Partner

                                        By:                      
                                           -------------------------------
                                        Name:  W. Bradley Blair, II
                                        Title:  President and CEO


                                       D-18

<PAGE>

                                    EXHIBIT D-1

     Schedule of Adjustments in the Number of Pledged Owner's Shares

     The Pledged Owner's Shares shall be adjusted as follows:

     1. Increase of Pledged Owner's Shares. If Pledgor elects to receive
additional Owner's Shares as described in the Contribution Agreement, then the
Pledged Owner's Shares shall be increased such that the value of the Pledged
Owner's Shares held by Secured Party in the Security Fund shall equal the sum of
(i) the value of the initial Pledged Owner's Shares (valued as the date of the
Pledge Agreement), and (ii) fifteen percent (15%) of the Contingent Purchase
Price (such shares valued as of the date of the pledge). This adjustment to the
number of Pledged Owner's Shares shall occur simultaneously with the
circumstances triggering such an adjustment as described above, without the
necessity for any further action on the part of Pledgor or Secured Party.
Pledgor shall deliver to Secured Party certificates evidencing such additional
Pledged Owner's Shares immediately upon the occurrence of such triggering
circumstances.

     2. Release of Pledged Owner's Shares. The Pledged Owner's Shares shall be
released and subtracted from the Security Fund in accordance with the following
schedule subsequent to the relocation and reconstruction of the 17th fairway and
green to Secured Party's satisfaction:

     (a).  Pledged Owner's Shares valued at $400,000 at such time as the Net
Operating Income with respect to the Property, shall have been, for the first
calendar year ending 1998, at least one hundred thirteen and one-half percent
(113.5%) of all rent payable by Tenant under the Lease for each such calendar
year (based on the rent adjusted in accordance with the terms of the Lease, if
applicable.

     (b). One-third (1/3) of the remaining Pledged Owner's Shares (or an
equivalent dollar amount if held in cash or other securities) at such time as
the Net Operating Income with respect to the Property shall have been, for each
of the two (2) prior calendar years (tested annually commencing January 1,
1998), at least one hundred twenty percent (120%) of all rent payable by Tenant
under the Lease for each such calendar year (based on the rent adjusted in
accordance with the terms of the Lease, if applicable).

     (c). An aggregate of two-thirds (2/3) of the remaining Pledged Owner's
Shares (or an equivalent dollar amount if held in cash or other securities) at
such time as the Net Operating Income with 


                                       D-1-1

<PAGE>

respect to the Property shall have been, for each of the two (2) prior 
calendar years (tested annually commencing January 1, 1998), at least one 
hundred and thirty percent (130%) of all rent payable by Tenant under the 
Lease for each such calendar year (based on the rent adjusted in accordance 
with the terms of the Lease, if applicable).

     (d). All of the Pledged Owner's Shares (or an equivalent dollar amount if
held in cash or other securities) provided that the Net Operating Income with
respect to the Property shall have been, for each of the two (2) prior calendar
years (tested annually commencing January 1, 1998), one hundred and forty
percent (140%) of all rent payable by Tenant under the Lease for each such
calendar year (based on the rent adjusted in accordance with the terms of the
Lease, if applicable).

     (e). Subject to Section 5.5 of the Lease, promptly after the Expiration
Date (as defined in the Lease) and payment by Pledgor to Secured Party of all
amounts due under the Lease, Secured Party shall release all remaining Pledged
Owner's Shares, if any, to Pledgor.

     (f).  In addition to the foregoing, Secured Party agrees that it may, but
is under no obligation to, release Pledged Owner's Shares valued at $80,000
subsequent to closing at request of Pledgor.

     This adjustment to the number of Pledged Owner's Shares shall occur
simultaneously with the circumstances triggering such an adjustment as described
above, without the necessity for any further action on the part of Pledgor or
Secured Party.


                                       D-1-2

<PAGE>

                                     EXHIBIT E
                  ADJUSTMENTS TO CALCULATION OF GROSS GOLF REVENUE
                                 FOR PRIVATE CLUBS
                                          
                                  Not Applicable.


                                       E-1

<PAGE>

                                     EXHIBIT F
                                    CALCULATION

Calculation of Gross Golf Revenue for the Base Year on a Quarter-by-Quarter
Basis

          1st Quarter 1997 $253,000
          2nd Quarter 1997 $319,000
          3rd Quarter 1997 $308,000
          4th Quarter 1997 $220,000


                                       F-1