Prior  to  1997,  non-profit   organizations,  including  private  golf courses,
were  exempted  from payment of income tax. Since the senate proposal
to  lift this  exemption  in  1996  to  its subsequent approval in 1997,  golf
clubs have been  lobbying  against  this  resolution.  What started out as
a forum  for members of six (6)  golf clubs  (Manila Golf &  Country  Club,
Capitol  Hills  Golf  &  Country Club,  Wack Wack   Golf  &  Country Club,
Canlubang Golf & Country Club, Valley  Golf & Country  Club and   Puerto
Azul Golf & Country Club) to discuss the resolution  consummated in the
founding of the  Federation of Golf  Clubs  (Philippines),   Inc.  then aimed
at opposing the proposal.

The  twelve  (12) original  member  clubs  eventually  grew  to  its present
twenty-five (25) - member strong federation. Based  on  their   decision  to
air  grievances,  resolve  problems  and  make decisions through a single
body -- the federation -- member  clubs  formulated  federation   rules  and
principles which they follow to this day:

1. Assist in the safeguarding of the environment and maintain the
   balance in the ecology of golf courses and surrounding areas.
2. Collaborate  solving,  decision-making,   cooperation  and  unity
   whenever necessary.
3. Adopt  a  common  reliable  course   rating  and  handicapping
   system that can be used by all member clubs.
4. Coordinate all major club  tournaments to avoid conflicts in the
   playing programs of golf club members.
5. To maintain exclusivity,  membership  in the   Federation  shall
   be by invitation by Board of Directors.
6. Membership  in  the  Federation  shall   be  by  Club  with  the
   designated officers acting as representatives and mediators.