Document:

AMENDMENT NO. 2
                                     TO THE
                      1995 STOCK OPTION AND INCENTIVE PLAN
                                       OF
                    FRANCHISE FINANCE CORPORATION OF AMERICA

     WHEREAS,  on January 28, 2000, the Board of Directors of Franchise  Finance
Corporation  of America (the  "Company"),  unanimously  approved a resolution to
amend the Company's  1995 Stock Option and Incentive Plan (the "Plan") to extend
the term of the Plan, subject to approval by the Company's shareholders;

     WHEREAS, on May 10, 2000, the Executive Committee of the Board of Directors
of the Company unanimously approved a resolution to amend the Plan to extend the
term  of the  Plan to  June  1,  2004,  subject  to  approval  by the  Company's
shareholders;

     WHEREAS, the Company's  shareholders  approved the amendment to the Plan at
the Annual Meeting of Shareholders held on May 10, 2000; and

     WHEREAS,  the Board of  Directors  of the  Company  unanimously  approved a
resolution on January 28, 2000, to grant Non-qualified Stock Options to purchase
6,000 shares of the  Company's  Common Stock,  par value $.01 per share,  to the
Non-Employee  Directors of the Company in lieu of the grants  provided for under
Section 3.05 of the Plan.

     The Plan is therefore amended as follows:

     Section 3.05 of the Plan is deleted in its entirety and replaced with a new
Section 3.05, which reads as follows:

     "SECTION 3.05.  NON-EMPLOYEE  DIRECTORS.  Notwithstanding  anything in this
Plan  to the  contrary,  Non-Employee  Directors  may be  granted  Options  only
pursuant to the provisions contained in this Section 3.05.

          (a) On the day of the Company's  Annual Meeting of  Shareholders  (the
     "Grant Date"), a Non-Employee Director shall automatically, without further
     action by the Board or the  Committee,  be  granted  certain  Non-Qualified
     Stock Options to purchase 6,000 shares of the Company's Common Stock. If on
     the Grant  Date the  Company  is in  possession  of  material,  undisclosed
     information that would prevent it from issuing  securities,  then the grant
     of the  Options  will be  suspended  until the  third day after the  public
     dissemination  of the  information  (or the first trading day  thereafter).
     Only the legal  counsel to the Company  may  suspend  the Grant  Date;  the
     amount,  pricing  and other  terms of the grant will remain as set forth in
     this Section  3.05,  with the exercise  price of the Option  determined  in
     accordance with the formula on the date the Option is finally granted.

          (b) Options granted to Non-Employee  Directors under the Plan may only
     be Non-Qualified  Options.  The price per share of the Common Stock subject
     to each  Option  granted  under the Plan shall not be less than 100% of the
     Fair Market Value of the Common stock on the Grant Date.
<PAGE>
          (c) In addition to the  provisions  contained in Section 10.02 of this
     Plan,  neither the Board nor the Committee may amend,  more than once every
     six months,  the  provisions of the Plan regarding (i) the selection of the
     Non-Employee  Directors to whom Options are to be granted,  (ii) the timing
     of such grants,  (iii) the number of shares subject to any Option, (iv) the
     exercise  price of any Option,  (v) the periods during which any Option may
     be exercised,  and (vi) the term of any Option,  other than to comport with
     changes in the Code, as amended,  the Employee  Retirement  Income Security
     Act, as amended,  or the rules and  regulations  thereunder.  In  addition,
     neither the Board nor the Committee may amend the Option Percentage without
     the advice of legal counsel to the Company."

     Section  10.02 of the Plan is deleted in its entirety  and replaced  with a
new Section 10.02, which reads as follows:

     "Section 10.02. AMENDMENT,  SUSPENSION OR TERMINATION OF THIS PLAN. Subject
to the conditions  contained in Section 3.05(c) herein,  this Plan may be wholly
or partially amended or otherwise modified,  suspended or terminated at any time
or from time to time by the Board.  However,  without  approval of the Company's
stockholders  given within twelve months before or after the action by the Board
or the Committee, no action of the Committee or Board may, except as provided in
Section 10.03, increase the limits imposed in Section 2.01 on the maximum number
of shares which may be issued under this Plan, and no action of the Committee or
Board may be taken that would otherwise require stockholder approval as a matter
of applicable law,  regulation or rule. No amendment,  suspension or termination
of this Plan shall, without the consent of the holder of an Option,  Performance
Award or Restricted  Stock,  alter or impair any rights or obligations under any
Option, Performance Award or Restricted Stock theretofore granted or awarded. No
Option,  Performance  Award or Restricted Stock may be granted or awarded during
any period of suspension nor after termination of this Plan, and in no event may
any Incentive Stock Option be granted under this Plan after June 1, 2004."

                                        2
<PAGE>
     IN WITNESS  WHEREOF,  the  undersigned  have caused this  instrument  to be
executed as of the 10th day of May, 2000.

                                        FRANCHISE FINANCE CORPORATION OF
                                        AMERICA, a Delaware corporation

                                        By: /s/ Christopher H. Volk
                                            ------------------------------------
                                            Christopher H. Volk, President

                                        By: /s/ Dennis L. Ruben
                                            ------------------------------------
                                            Dennis L. Ruben, Secretary

                                        3FOURTH AMENDMENT TO AMENDED AND RESTATED CREDIT AND SECURITY AGREEMENT

     This  Amendment,  dated as of August 3,  2000,  is made by and  between  FM
PRECISION GOLF  MANUFACTURING  CORP., a Delaware  corporation,  and FM PRECISION
GOLF SALES CORP., a Delaware corporation  (collectively,  jointly and severally,
the "Borrower"), and WELLS FARGO BUSINESS CREDIT, INC., a Minnesota corporation,
formerly known as Norwest Business Credit, Inc. (the "Lender").

                                    Recitals

     The  Borrower  and the  Lender  have  entered  into a Credit  and  Security
Agreement  dated as of October 9, 1998, as amended by that certain  Amendment to
Credit and Security  Agreement  and Waiver of Defaults  dated April 13, 1999, as
amended by that certain Second Amendment to Credit and Security  Agreement dated
November 10,  1999,  as amended by that  certain  Third  Amendment to Credit and
Security Agreement dated March 24, 2000, (collectively, the "Credit Agreement").
Capitalized  terms used in these recitals have the meanings given to them in the
Credit Agreement unless otherwise specified.

     The Borrower has  requested  that certain  amendments be made to the Credit
Agreement,  which  the  Lender  is  willing  to make  pursuant  to the terms and
conditions set forth herein.

     NOW,  THEREFORE,  in  consideration  of the  premises  and  of  the  mutual
covenants and agreements herein contained, it is agreed as follows:

     1.  DEFINED  TERMS.  Capitalized  terms  used in this  Amendment  which are
defined in the Credit Agreement shall have the same meanings as defined therein,
unless otherwise defined herein.

     2. AMENDMENTS. The Credit Agreement is hereby amended as follows:

          (a)  Section  7.10 of the  Credit  Agreement  is  hereby  deleted  and
replaced as follows:

               CAPITAL EXPENDITURES. FMM, FMS and the Covenant Entities will not
               incur or contract to incur Capital  Expenditures in the aggregate
               of more than (i)  $2,200,000.00  during  Borrower's  2000  fiscal
               year, and (ii)  $2,000,000.00  during any fiscal year thereafter.
               In addition, FMM, FMS and the Covenant Entities will not incur or
               contract to incur Capital  Expenditures paid with working capital
               in the aggregate of more than (i) $2,200,000.00 during Borrower's
               2000 fiscal year, and (ii)  $1,250,000.00  during any fiscal year
               thereafter.

                                       1
<PAGE>
     3. NO OTHER CHANGES. Except as explicitly amended by this Amendment, all of
the terms and conditions of the Credit  Agreement shall remain in full force and
effect and shall apply to any advance or letter of credit thereunder.

     4. CONDITIONS PRECEDENT.  This Amendment shall be effective when the Lender
shall have  received  an executed  original  hereof,  together  with each of the
following,  each in  substance  and form  acceptable  to the  Lender in its sole
discretion:

          (a) The Acknowledgment and Agreement of Guarantor set forth at the end
of this Amendment, duly executed by the Guarantor.

          (b) A Certificate  of the  Secretary of the Borrower  certifying as to
(i) the  resolutions  of the board of directors of the  Borrower  approving  the
execution  and  delivery of this  Amendment,  (ii) the fact that the articles of
incorporation and bylaws of the Borrower,  which were certified and delivered to
the Lender pursuant to the Certificate of Authority of the Borrower's  secretary
or  assistant  secretary  dated as of  October  9, 1998 in  connection  with the
execution and delivery of the Credit Agreement continue in full force and effect
and have not been  amended  or  otherwise  modified  except  as set forth in the
Certificate to be delivered,  and (iii)  certifying that the officers and agents
of the  Borrower  who  have  been  certified  to  the  Lender,  pursuant  to the
Certificate  of Authority  of the  Borrower's  secretary or assistant  secretary
dated as of October 9, 1998, as being authorized to sign and to act on behalf of
the Borrower continue to be so authorized or setting forth the sample signatures
of each of the  officers and agents of the  Borrower  authorized  to execute and
deliver this Amendment and all other  documents,  agreements and certificates on
behalf of the Borrower.

          (c) Such other matters as the Lender may require.

     5.  REPRESENTATIONS  AND  WARRANTIES.  The Borrower  hereby  represents and
warrants to the Lender as follows:

          (a) The Borrower has all requisite power and authority to execute this
Amendment and to perform all of its  obligations  hereunder,  and this Amendment
has been duly executed and delivered by the Borrower and  constitutes the legal,
valid and binding obligation of the Borrower, enforceable in accordance with its
terms.

          (b) The  execution,  delivery and  performance by the Borrower of this
Amendment have been duly authorized by all necessary corporate action and do not
(i)  require  any  authorization,   consent  or  approval  by  any  governmental
department,  commission,  board, bureau, agency or instrumentality,  domestic or
foreign,  (ii) violate any  provision of any law,  rule or  regulation or of any
order, writ,  injunction or decree presently in effect,  having applicability to
the Borrower,  or the articles of incorporation  or by-laws of the Borrower,  or
(iii) result in a breach of or  constitute a default under any indenture or loan
or credit  agreement or any other  agreement,  lease or  instrument to which the
Borrower is a party or by which it or its properties may be bound or affected.

          (c) All of the representations  and warranties  contained in Article V
of the Credit  Agreement are correct on and as of the date hereof as though made
on and as of such  date,  except to the  extent  that such  representations  and
warranties relate solely to an earlier date.

                                       2
<PAGE>
     6.  REFERENCES.  All references in the Credit Agreement to "this Agreement"
shall be deemed to refer to the Credit Agreement as amended hereby;  and any and
all references in the Security Documents to the Credit Agreement shall be deemed
to refer to the Credit Agreement as amended hereby.

     7. NO  WAIVER.  The  execution  of this  Amendment  and  acceptance  of any
documents  related  hereto  shall not be deemed to be a waiver of any Default or
Event of Default or Default Period under the Credit Agreement or breach, default
or event of default  under any Security  Document or other  document held by the
Lender,  whether or not known to the Lender and  whether or not  existing on the
date of this Amendment.

     8. RELEASE. The Borrower,  and each Guarantor by signing the Acknowledgment
and  Agreement  of  Guarantor  set  forth  below,  each  hereby  absolutely  and
unconditionally  releases  and forever  discharges  the Lender,  and any and all
participants,   parent   corporations,   subsidiary   corporations,   affiliated
corporations,  insurers,  indemnitors,  successors and assigns thereof, together
with all of the present and former directors,  officers, agents and employees of
any of the  foregoing,  from any and all claims,  demands or causes of action of
any  kind,  nature  or  description,  whether  arising  in law or equity or upon
contract  or tort or under  any state or  federal  law or  otherwise,  which the
Borrower or such  Guarantor  has had,  now has or has made claim to have against
any such person for or by reason of any act,  omission,  matter,  cause or thing
whatsoever  arising from the beginning of time to and including the date of this
Amendment,  whether  such  claims,  demands  and causes of action are matured or
unmatured or known or unknown.

     9. COSTS AND EXPENSES.  The Borrower  hereby  reaffirms its agreement under
the Credit  Agreement to pay or reimburse the Lender on demand for all costs and
expenses  incurred by the Lender in connection  with the Credit  Agreement,  the
Security  Documents  and all other  documents  contemplated  thereby,  including
without  limitation  all  reasonable  fees and  disbursements  of legal counsel.
Without  limiting the  generality of the  foregoing,  the Borrower  specifically
agrees  to pay all fees and  disbursements  of  counsel  to the  Lender  for the
services  performed by such counsel in connection  with the  preparation of this
Amendment and the  documents and  instruments  incidental  hereto.  The Borrower
hereby  agrees that the Lender may, at any time or from time to time in its sole
discretion and without further authorization by the Borrower, make a loan to the
Borrower under the Credit Agreement,  or apply the proceeds of any loan, for the
purpose of paying any such fees, disbursements, costs and expenses.

     10.  MISCELLANEOUS.  This Amendment and the Acknowledgment and Agreement of
Guarantors may be executed in any number of counterparts,  each of which when so
executed  and   delivered   shall  be  deemed  an  original  and  all  of  which
counterparts, taken together, shall constitute one and the same instrument.

                                       3
<PAGE>
     IN WITNESS  WHEREOF,  the parties  hereto have caused this  Amendment to be
duly executed as of the date first written above.

                                        WELLS FARGO BUSINESS CREDIT, INC.

                                        By /s/ Clifton Moschnik
                                           -------------------------------------
                                        Its Assistant Vice President
                                            ------------------------------------

                                        FM PRECISION GOLF MANUFACTURING CORP.,
                                        a Delaware corporation

                                        By /s/ Kevin L. Neill
                                           -------------------------------------

                                        Its Chief Financial Officer
                                            ------------------------------------

                                        FM PRECISION GOLF SALES CORP.,
                                        a Delaware corporation

                                        By /s/ Kevin L. Neill
                                           -------------------------------------

                                        Its Chief Financial Officer
                                            ------------------------------------

                                       4
<PAGE>
                    ACKNOWLEDGMENT AND AGREEMENT OF GUARANTOR

     The  undersigned,  a guarantor of the  indebtedness  of FM  Precision  Golf
Manufacturing   Corp.,  and  FM  Precision  Golf  Sales  Corp.,   each  Delaware
corporations  (collectively,  jointly and severally,  the  "Borrowers") to Wells
Fargo Business Credit,  Inc.,  formerly known as Norwest  Business Credit,  Inc.
(the  "Lender")  pursuant  to a  Guaranty  dated  as of  October  9,  1998  (the
"Guaranty"),  hereby (i) acknowledges receipt of the foregoing  Amendment;  (ii)
consents to the terms  (including  without  limitation  the release set forth in
paragraph  8 of the  Amendment)  and  execution  thereof;  (iii)  reaffirms  its
obligations  to the  Lender  pursuant  to the  terms of its  Guaranty;  and (iv)
acknowledges  that the Lender may amend,  restate,  extend,  renew or  otherwise
modify the Credit  Agreement and any  indebtedness or agreement of the Borrower,
or enter into any agreement or extend additional or other credit accommodations,
without  notifying  or  obtaining  the  consent of the  undersigned  and without
impairing  the  liability of the  undersigned  under the Guaranty for all of the
Borrowers' present and future indebtedness to the Lender.

                                        ROYAL PRECISION, INC.,
                                        a Delaware corporation

                                        By /s/ Kevin L. Neill
                                           -------------------------------------

                                        Its Chief Financial Officer
                                            ------------------------------------

                                       5

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