Document:

Exhibit 10.2

 

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF SOUTH CAROLINA

FLORENCE DIVISION

 

	
  Larry
  D. Young, Danny L. Young,

  	
  )

  	
   

  
	
  Kyle
  N. Young, the Young Family 

  	
  )

  	
   

  
	
  Irrevocable
  Trust, and The Legends 

  	
  )

  	
   

  
	
  Group,
  Ltd.,

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
  Plaintiffs,

  	
  )

  	
  CA NO. 4:04-902-25

  	
   

  
	
   

  	
  )

  	
   

  
	
  v.

  	
  )

  	
   

  
	
   

  	
  )

  	
  CONFESSION OF JUDGMENT

  	
   

  
	
  BDO
  Seidman, LLP, Fred Walton,

  	
  )

  	
   

  
	
  Kurt
  Huntzinger, Chris Truitt, Golf

  	
  )

  	
   

  
	
  Trust
  of America, Inc., Bradley 

  	
  )

  	
   

  
	
  Blair
  and Scott Peters,

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
  Defendants.

  	
  )

  	
   

  

 

Personally appeared before me, Larry D.
Young, who being duly sworn, deposed and stated that:

 

1.     Larry D. Young is justly and truly indebted to Golf Trust of
America, Inc. (“GTA”) in relation to certain disputes arising out of and
related to the relationship between Larry D. Young and GTA.

 

2.     Pursuant to the terms of the Promissory Note executed by Larry
D. Young on January 31, 2008 (“Note”), as part of the Settlement Agreement
of the same date in the above captioned case, Larry D. Young agreed to pay to
GTA the principal sum of $3,876,856.00 (Three
Million Eight Hundred Seventy-Six Thousand Eight Hundred Fifty-Six U.S.
Dollars) plus accrued interest, on the terms and conditions set forth in
said Note, which is attached to the Settlement Agreement as Exhibit A, and
both the Note and the Settlement Agreement are incorporated herein by
reference.

 

3.     Larry D. Young acknowledges that this Confession of Judgment is
additional security for the timely payment of the acknowledged debt as
evidenced by the Note.

 

1

 

4.     Upon default under the terms of the Note, Larry D. Young hereby
irrevocably consents to and authorizes the entry upon the public records this
Confession of Judgment in the amount of $3,876,856.00 (Three Million Eight Hundred Seventy-Six Thousand Eight Hundred
Fifty-Six U.S. Dollars), plus accrued interest, plus reasonable attorney’s
fees, court costs and expenses due under the Note, less any payments on the
Note made by Larry D. Young prior to the default, and less $700,000.00 (Seven Hundred Thousand U.S. Dollars) in
principal in the event Larry D. Young has conveyed the Property to GTA pursuant
to and in accordance with Sections 6 and 7 of the Settlement Agreement prior to
the default, said $700,000.00 (Seven
Hundred Thousand U.S. Dollars) being the agreed upon value of the
referenced Property, or the amount of any payments made by Larry D. Young under
Section 20 of the Settlement Agreement prior to the default.

 

5.     This Confession of Judgment shall not be placed on the public
records unless and until Larry D. Young commits any default under the terms of
the Note.  Upon any default by Larry D.
Young under the terms of the Note, any GTA attorney is authorized and empowered
to confess judgment on behalf of Larry D. Young in accordance herewith, and is
further authorized and empowered to file and record this Confession of Judgment
by submitting an affidavit to the Clerk of Court setting forth the nature of
the default and the amount to be entered in the judgment roll.  Larry D. Young affirms that the amount of
this Confession of Judgment is justly due upon the event of a default under the
terms of the Note.  Said affidavit shall
set forth the credit given, if any, for the amounts paid by Larry D. Young pursuant
to the terms of the Note and the value of the Property as set forth above.  Upon the filing of the foregoing affidavit,
the Clerk of Court is authorized and empowered to take all appropriate actions
to enter this Confession of Judgment into the Court’s docket and enter a
judgment in accordance with its terms. Any recorded judgment may be transferred
thereafter to any State and/or county in which Larry D. Young has or owns
property, and may be

 

2

 

enforced by any court of
competent jurisdiction.

 

6.     Should it become necessary to record this Confession of
Judgment, it shall be a valid judgment against Larry D. Young for a period of
ten (10) years commencing from the date of recordation. Once recorded, the
judgment shall bear interest at the rate set forth in the Note.

 

7.     Larry D. Young agrees and affirms that he shall not challenge or
contest in any way his capacity or authority to enter into and execute this
Confession of Judgment. Larry D. Young agrees and affirms that he shall not
challenge or contest in any way the capacity or authority of GTA’s attorneys to
take any action to effectuate this Confession of Judgment, and Larry D. Young
knowingly, voluntarily and intentionally waives any possible conflict of
interest which may arise as a result of any GTA attorney confessing judgment on
behalf of Larry D. Young as authorized herein, or otherwise taking action to
effectuate this Confession of Judgment.

 

8.     Upon Larry D. Young’s full payment to GTA in accordance with the
terms of the Note, Larry D. Young shall be forever released and discharged from
any liability to GTA arising out of or in any manner connected with this
Confession of Judgment and GTA shall return the original Confession of Judgment
to Larry D. Young with a written certification by a GTA representative stating
that the Note secured by this Confession of Judgment has been paid in full.

 

9.     Larry D. Young agrees that GTA is not required to provide notice
to Larry D. Young prior to filing the Confession of Judgment, and any such
prior notice is knowingly, voluntarily and intentionally waived by Larry D.
Young.

 

10.   The undersigned hereby verifies that he has read the within
Confession of Judgment, has had the opportunity to consult with counsel of this
choice regarding the terms and conditions contained in the Confession of
Judgment, and has executed this Confession of Judgment freely, knowingly,
intentionally and voluntarily, and that the information contained herein is
true and correct.

 

3

 

	
   

  	
  /s/ Larry D. Young

  	
   

  
	
   

  	
        Larry D. Young

  
	
   

  	
   

  
	
  SWORN
  to before me this

  	
   

  
	
   

  	
   

  
	
  31st day of January,
  2008.

  	
   

  
	
   

  	
   

  
	
  /s/
  Larry B. Woodberry

  	
   

  	
   

  
	
  Notary
  Public for South Carolina

  	
   

  
	
  My Commission Expires: 8/31/2001

  	
   

  
	
  (OFFICIAL SEAL)

  	
   

  
				

 

4Exhibit 10.3

 

PROMISSORY NOTE

 

	
  $3,876,856.00

  	
   

  	
  Myrtle Beach, South Carolina

  
	
   

  	
   

  	
  January

  	
  31

  	
  , 2008

  

 

FOR VALUE RECEIVED, and
pursuant to the Settlement Agreement in the case captioned Larry D.
Young, et al., Plaintiffs, v. BDO Seidman, LLP, et al., Defendants,
Civil Action No. 4:04-902-25, United States District Court for the
District of South Carolina, Florence Division, the undersigned individual,
Larry D. Young, (the “Maker”) promises to pay to the order of Golf Trust of
America, Inc., (the “Payee”), of 10 Adger’s Wharf, Charleston, South
Carolina, the principal sum of Three Million Eight Hundred Seventy-Six Thousand
Eight Hundred Fifty-Six U.S. Dollars ($3,876,856.00), together with interest
(as defined and determined below) in like coin or currency, in lawful money of
the United States of America which shall be legal tender in payment of all
debts at the time of payment, said principal and interest to be paid as set
forth in this Promissory Note (the “Note”).

 

Payments shall be made
to Payee at the above address, or at such other place as Payee may from time to
time designate, as follows:

 

(a)                                  $100,000.00
(One Hundred Thousand U.S. Dollars) principal due on May 31, 2008;

 

(b)                                 $133,334.00
(One Hundred Thirty-Three Thousand Three Hundred Thirty-Four U.S. Dollars)
principal due on January 1, 2009;

 

(c)                                  $133,333.00
(One Hundred Thirty-Three Thousand Three Hundred Thirty-Three U.S. Dollars)
principal due on January 1, 2010;

 

(d)                                 $133,333.00
(One Hundred Thirty-Three Thousand Three Hundred Thirty-Three U.S. Dollars)
principal due on January 1, 2011; and,

 

(e)                                  $3,376,856.00 (Three Million Three Hundred Seventy-Six Thousand
Eight Hundred Fifty-Six U.S. Dollars) principal, plus annual compound
interest accruing on outstanding principal, as a final lump-sum payment due on June 1,
2011 (the “Maturity Date”); however, in the event that the Maker timely and
completely makes all of the principal payments due to Payee as required by the
above sections (a) — (d), inclusive, then Payee will waive the
$3,376,856.00 principal payment, plus accrued interest, due from the Maker as
set forth in this section (e).

 

Interest shall accrue
and be paid on the unpaid principal amount of this Note (computed on the basis
of a 360 day year for the actual number of days elapsed) commencing on the
interest commencement date (as defined below) at a compound annual interest
rate of twelve percent (12%),

 

The “interest
commencement date” is the date of execution of this Note.  This Note may be prepaid in whole or in part
at any time without penalty.

 

1

 

This Note is to be
construed and enforced according to the laws of the State of South Carolina.

 

In the event the Maker
fails to timely pay any of the sums required by this Note the Maker shall be in
default, and shall have the right to cure the default within ten (10) days
after receipt of written notice thereof from Payee to Maker at 4556 Girvan
Drive, Myrtle Beach, SC 29579, or at such other place as Maker may from time to
time designate.  If the Maker fails to
cure the default within the ten-day cure period, then the entire amount of
outstanding principal of this Note, together with all interest then accrued
(less a $700,000.00 credit for the value of the Property if it is transferred
in accordance with Sections 6 and 7 of the above-referenced Settlement
Agreement), shall become and be immediately due and payable, and the Payee
shall have the right to institute any proceedings upon this Note and any
collateral to secure the same.  In the
event of a default by the Maker, compound annual interest at a twelve percent
(12%) rate shall commence to accrue on all principal sums due at the time of
default, and shall continue to accrue until such time as the entire sum due
under the Note is paid.  The holder of
this Note shall be entitled to reasonable costs, expenses and attorney’s fees
for the services of counsel employed after default to collect this Note,
whether or not suit be brought.

 

Presentment, protest,
notice of dishonor and notice of protest of this Note, and the extension,
renewal or modification of this Note, all are hereby waived.  The Maker unconditionally guarantees the
timely payment of all sums due under this Note. 
In the event of Maker’s default, Maker knowingly, voluntarily and
intentionally waives the right to a trial by jury as to any issue arising from
or related to this Note.

 

Time is of the essence
in the payment of sums due under this Note.

 

This Note may not be
modified orally, but only in a writing executed by Maker and Payee.

 

This Note is issued
pursuant to the terms of, and as part of, the above referenced Settlement
Agreement and is secured by a Confession of Judgment executed by Larry D. Young
simultaneously herewith.  The above
referenced Settlement Agreement and Confession of Judgment are incorporated
herein by reference.

 

Whenever Payee is
referenced in this Note, such reference shall be deemed to include the
successors and assigns of Payee, including, without limitation, any subsequent
assignee or holder of this Note, and all covenants, provisions and agreements
by or on behalf of the Maker that are contained herein shall inure to the
benefit of the successors and assigns of the Payee.

 

This Note is executed
under seal on the date set forth above.

 

	
  WITNESSES:

  	
   

  
	
  /s/ Barbara Ferrari

  	
   

  	
  /s/ Larry D. Young

  	
   

  
	
   

  	
  Larry D. Young

  
	
  /s/ Diane L. Joyce 

  	
   

  	
   

  

 

2

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