Document:

Exhibit
10.2

COMMERCIAL SECURITY
AGREEMENT

	
  Principal 

  $1,200,000.00

  	
  Loan
  Date 

  04-10-2007

  	
  Maturity
  04-10-2010

  	
  Loan
  No. 

  7000407.

  	
  Call /
  Coll

  	
  Account

  	
  Officer
  KJM

  	
  Initials

  
	
  References in
  the shaded area are for Lender’s use only and do not limit the applicability
  of this document to any particular loan or item.

  
	
  Any item above
  containing “***” has been omitted due to text length limitations.

  

 

	
  Borrower:

  	
   

  	
  GTA-IB, LLC; GTA-IB Golf Resort, LLC; and GTA-IB
  

  Condominium, LLC 

  701 Brickell Avenue, Suite 3000 

  Miami, FL 33131 

  	
   

  	
  Lender:

  	
   

  	
  Patriot Bank 

  1815 Little Road 

  Trinity, FL 34655

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Grantor:

  	
   

  	
  GTA-IB Condominium, LLC 

  701 Brickell Avenue, Suite 3000 

  Miami, FL 33131

  	
   

  	
   

  
								

 

THIS
COMMERCIAL SECURITY AGREEMENT dated April 10, 2007, is made and executed among
GTA-IB Condominium, LLC (“Grantor”); GTA-IB, LLC; GTA-IB Golf Resort, LLC; and
GTA-IB Condominium, LLC (“Borrower”); and Patriot Bank (“Lender”).

GRANT
OF SECURITY INTEREST.  For valuable
consideration, Grantor grants to Lender a security interest in the Collateral
to secure the Indebtedness and agrees that Lender shall have the rights stated
in this Agreement with respect to the Collateral, in addition to all other
rights which Lender may have by law.

COLLATERAL
DESCRIPTION.  The word “Collateral” as used in this
Agreement means the following described property, whether now owned or
hereafter acquired, whether now existing or hereafter arising, and wherever
located, in which Grantor is giving to Lender a security interest for the
payment of the Indebtedness and performance of all other obligations under the
Note and this Agreement:

See Exhibit “A”, which includes

All Inventory, Chattel Paper, Accounts, Equipment
and General Intangibles;  All Inventory,
Chattel Paper, Accounts, Equipment and General Intangibles; whether any of the
foregoing is owned now or acquired later; all accessions, additions,
replacements, and substitutions relating to any of the foregoing;  all records of any kind relating to any of
the foregoing; all proceeds relating to any of the foregoing (including
insurance, general intangibles and other accounts proceeds of the referenced
real property.

In
addition, the word “Collateral” also includes all the following, whether now
owned or hereafter acquired, whether now existing or hereafter arising, and
wherever located:

(A)            All accessions, attachments, accessories, tools, parts,
supplies, replacements of and additions to any of the collateral described
herein, whether added now or later.

(B) All products and produce of any of the property described in this
Collateral section.

(C) All accounts, general intangibles, instruments, rents, monies,
payments, and all other rights, arising out of a sale, lease, consignment or
other disposition of any of the property described in this Collateral section.

(D) All proceeds (including insurance proceeds) from the sale,
destruction, loss, or other disposition of any of the property described in
this Collateral section, and sums due from a third party who has damaged or
destroyed the Collateral or from that party’s insurer, whether due to judgment,
settlement or other process.

(E) All records and data relating to any of the property described in
this Collateral section, whether in the form of a writing, photograph,
microfilm, microfiche, or electronic media, together with all of Grantor’s
right, title, and interest in and to all computer software required to utilize,
create, maintain, and process any such records or data on electronic media.

BORROWER’S
WAIVERS AND RESPONSIBILITIES.  Except
as otherwise required under this Agreement or by applicable law,
(A) Borrower agrees that Lender need not tell Borrower about any action or
inaction Lender takes in connection with this Agreement; (B) Borrower
assumes the responsibility for being and keeping informed about the Collateral;
and (C) Borrower waives any defenses that may arise because of any action
or inaction of Lender, including without limitation any failure of Lender to
realize upon the Collateral or any delay by Lender in realizing upon the
Collateral; and Borrower agrees to remain liable under the Note no matter what
action Lender takes or fails to take under this Agreement.

GRANTOR’S
REPRESENTATIONS AND WARRANTIES.  Grantor
warrants that:  (A) this Agreement
is executed at Borrower’s request and not at the request of Lender;
(B) Grantor has the full right, power and authority to enter into this
Agreement and to pledge the Collateral to Lender; (C) Grantor has
established adequate means of obtaining from Borrower on a continuing basis
information about Borrower’s financial condition; and (D) Lender has made
no representation to Grantor about Borrower or Borrower’s creditworthiness.

GRANTOR’S
WAIVERS.  Grantor waives all requirements of
presentment, protest, demand, and notice of dishonor or non-payment to Borrower
or Grantor, or any other party to the Indebtedness or the Collateral.  Lender may do any of the following with
respect to any obligation of any Borrower, without first obtaining the consent
of Grantor:  (A) grant any extension
of time for any payment, (B) grant any renewal, (C) permit any
modification of payment terms or other terms, or (D) exchange or release
any Collateral or other security.  No
such act or failure to act shall affect Lender’s rights against Grantor or the
Collateral.

RIGHT
OF SETOFF.  To the extent permitted by applicable law,
Lender reserves a right of setoff in all Grantor’s accounts with Lender
(whether checking, savings, or some other account).  This includes all accounts Grantor holds
jointly with someone else and all accounts Grantor may open in the future.  However, this does not include any IRA or
Keogh accounts, or any trust accounts for which setoff would be prohibited by
law.  Grantor authorizes Lender, to the
extent permitted by applicable law, to charge or setoff all sums owing on the
Indebtedness against any and all such accounts.

GRANTOR’S
REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE COLLATERAL. 
With respect to the Collateral, Grantor represents and promises to
Lender that:

Perfection of Security Interest. 
Grantor agrees to take whatever actions are requested by Lender to perfect
and continue Lender’s security interest in the Collateral.  Upon request of Lender, Grantor will deliver
to Lender any and all of the documents evidencing or constituting the
Collateral, and Grantor will note Lender’s interest upon any and all chattel
paper and instruments if not delivered to Lender for possession by Lender.  This is a continuing
Security Agreement and will continue in effect even though all or any part of
the Indebtedness is paid in full and even though for a period of time Borrower
may not be indebted to Lender.

Notices to Lender.  Grantor
will promptly notify Lender in writing at Lender’s address shown above (or such
other addresses as Lender may designate from time to time) prior to any
(1) change in Grantor’s name; (2) change in Grantor’s assumed
business name(s); (3) change in the management or in the members or
managers of the limited liability company Grantor; (4) change in the
authorized signer(s); (5) change in Grantor’s principal office address;
(6) change in Grantor’s state of organization; (7) conversion of
Grantor to a new or different type of business entity; or (8) change in
any other aspect of Grantor that directly or indirectly relates to any
agreements between Grantor and Lender. 
No change in Grantor’s name or state of organization will take effect
until after Lender has received notice.

No Violation.  The
execution and delivery of this Agreement will not violate any law or agreement
governing Grantor or to which Grantor is a party, and its membership agreement
does not prohibit any term or condition of this Agreement.

Enforceability of Collateral.  To
the extent the Collateral consists of accounts, chattel paper, or general
intangibles, as defined by the Uniform Commercial Code, the Collateral is
enforceable in accordance with its terms, is genuine, and fully complies with
all applicable laws and regulations concerning form, content and manner of
preparation and execution, and all persons appearing to be obligated on the
Collateral have authority and capacity to contract and are in fact obligated as
they appear to be on the Collateral.  At
the time any account becomes subject to a security Interest in favor of Lender,
the account shall be a good and valid account representing an undisputed, bona
fide indebtedness incurred by the account debtor, for merchandise held subject
to delivery instructions or previously shipped or delivered pursuant to a
contract of sale, or for services previously performed by Grantor with or for
the account debtor.  So long as this
Agreement remains in effect, Grantor shall not, without Lender’s prior written
consent, compromise, settle, adjust, or extend payment under or with regard to
any such Accounts.  There shall be no
setoffs or counterclaims against any of the Collateral, and no agreement shall
have been made under which any deductions or discounts may be claimed
concerning the Collateral except those disclosed to Lender in writing.

Location of the Collateral. 
Except in the ordinary course of Grantor’s business, Grantor agrees to
keep the Collateral (or to the extent the Collateral consists of intangible
property such as accounts or general intangibles, the records concerning the
Collateral) at Grantor’s address shown above or at such other locations as are
acceptable to Lender.  Upon Lender’s
request, Grantor will deliver to Lender in form satisfactory to Lender a
schedule of real properties and Collateral locations relating to Grantor’s
operations, including without limitation the following:  (1) all real property Grantor owns or is
purchasing; (2) all real property Grantor is renting or leasing;
(3) all storage facilities Grantor owns, rents, leases, or uses; and
(4) all other properties where Collateral is or may be located.

Removal of the Collateral. 
Except in the ordinary course of Grantor’s business, including the sales
of inventory, Grantor shall not remove the Collateral from its existing
location without Lender’s prior written consent.  To the extent that the Collateral consists of
vehicles, or other titled property, Grantor shall not take or permit any action
which would require application for certificates of title for the vehicles
outside the State of Florida, without Lender’s prior written consent.  Grantor shall, whenever requested, advise
Lender of the exact location of the Collateral.

Transactions Involving Collateral. 
Except for inventory sold or accounts collected in the ordinary course
of Grantor’s business, or as otherwise provided for in this Agreement, Grantor
shall not sell, offer to sell, or otherwise transfer or dispose of the
Collateral.  While Grantor is not in
default under this Agreement, Grantor may sell inventory, but only in the
ordinary course of its business and only to buyers who qualify as a buyer in
the ordinary course of business.  A sale
in the ordinary course of Grantor’s business does not include a transfer in
partial or total satisfaction of a debt or any bulk sale.  Grantor shall not pledge, mortgage, encumber
or otherwise permit the Collateral to be subject to any lien, security
interest, encumbrance, or charge, other than the security interest provided for
in this Agreement, without the prior written consent of Lender.  This includes security interests even if
junior in right to the security interests granted under this Agreement.  Unless waived by Lender, all proceeds from
any disposition of the Collateral (for whatever reason) shall be held in trust
for Lender and shall not be commingled with any other funds; provided however,
this requirement shall not constitute consent by Lender to any sale or other
disposition.  Upon receipt, Grantor shall
immediately deliver any such proceeds to Lender.

Title.  Grantor
represents and warrants to Lender that Grantor holds good and marketable title
to the Collateral, free and clear of all liens and encumbrances except for the
lien of this Agreement.  No financing
statement covering any of the Collateral is on file in any public office other
than those which reflect the security interest created by this Agreement or to
which Lender has specifically consented. 
Grantor shall defend Lender’s rights in the Collateral against the
claims and demands of all other persons.

Repairs and Maintenance. 
Grantor agrees to keep and maintain, and to cause others to keep and
maintain, the Collateral in good order, repair and condition at all times while
this Agreement remains in effect. 
Grantor further agrees to pay when due all claims for work done on, or
services rendered or material furnished in connection with the Collateral so
that no lien or encumbrance may ever attach to or be filed against the
Collateral.

Inspection of Collateral. 
Lender and Lender’s designated representatives and agents shall have the
right at all reasonable times to examine and inspect the Collateral wherever
located.

Taxes, Assessments and Liens. 
Grantor will pay when due all taxes, assessments and liens upon the
Collateral, its use or operation, upon this Agreement, upon any promissory note
or notes evidencing the Indebtedness, or upon any of the other Related
Documents.  Grantor may withhold any such
payment or may elect to contest any lien if Grantor is in good faith conducting
an appropriate proceeding to contest the obligation to pay and so long as
Lender’s interest in the Collateral is not jeopardized in Lender’s sole
opinion.  If the Collateral is subjected
to a lien which is not discharged within fifteen (15) days, Grantor shall
deposit with Lender cash, a sufficient corporate surety bond or other security
satisfactory to Lender in an amount adequate to provide for the discharge of
the lien plus any interest, costs, reasonable attorneys’ fees or other charges
that could accrue as a result of foreclosure or sale of the Collateral.  In any contest Grantor shall defend itself
and Lender and shall satisfy any final adverse judgment before enforcement against
the Collateral.  Grantor shall name
Lender as an additional obligee under any surety bond furnished in the contest
proceedings.  Grantor further agrees to
furnish Lender with evidence that such taxes, assessments, and governmental and
other charges have been paid in full and in a timely manner.  Grantor may withhold any such payment or may
elect to contest any lien if Grantor is in good faith conducting an appropriate
proceeding to contest the obligation to pay and so long as Lender’s interest in
the Collateral is not jeopardized.

 2
 

Compliance with Governmental Requirements. 
Grantor shall comply promptly with all laws, ordinances, rules and
regulations of all governmental authorities, now or hereafter in effect,
applicable to the ownership, production, disposition, or use of the
Collateral!, including all laws or regulations relating to the undue erosion of
highly-erodible land or relating to the conversion of wetlands for the
production of an agricultural product or commodity.  Grantor may contest in good faith any such
law, ordinance or regulation and withhold compliance during any proceeding,
including appropriate appeals, so long as Lender’s interest in the Collateral,
in Lender’s opinion, is not jeopardized.

Hazardous
Substances.  Grantor represents and warrants that the
Collateral never has been, and never will be so long as this Agreement remains
a lien on the Collateral, used in violation of any Environmental Laws or for
the generation, manufacture, storage, transportation, treatment, disposal, release
or threatened release of any Hazardous Substance.  The representations and warranties contained
herein are based on Grantor’s due diligence in investigating the Collateral for
Hazardous Substances.  Grantor hereby
(1) releases and waives any future claims against Lender for indemnity or
contribution in the event Grantor becomes liable for cleanup or other costs
under any Environmental Laws, and (2) agrees to indemnify, defend, and
hold harmless Lender against any and all claims and losses resulting from a
breach of this provision of this Agreement. 
This obligation to indemnify and defend shall survive the payment of the
Indebtedness and the satisfaction of this Agreement.

Maintenance of Casualty Insurance. 
Grantor shall procure and maintain all risks insurance, including
without limitation fire, theft and liability coverage together with such other
insurance as Lender may require with respect to the Collateral, in form,
amounts, coverages and basis reasonably acceptable to Lender and issued by a
company or companies reasonably acceptable to Lender.  Grantor, upon request of Lender, will deliver
to Lender from time to time the policies or certificates of insurance in form satisfactory to Lender,
including stipulations that coverages will not be cancelled or diminished
without at least thirty (30) days’ prior written notice to Lender and not
including any disclaimer of the insurer’s liability for failure to give such a
notice.  Each insurance policy also shall
include an endorsement providing that coverage in favor of Lender will not be
impaired in any way by any act, omission or default of Grantor or any other
person.  In connection with all policies
covering assets in which Lender holds or is offered a security interest,
Grantor will provide Lender with such loss payable or other endorsements as
Lender may require.  If Grantor at any
time fails to obtain or maintain any insurance as required under this
Agreement, Lender may (but shall not be obligated to) obtain such insurance as
Lender deems appropriate, including if Lender so chooses “single interest
insurance,” which will cover only Lender’s interest in the Collateral.

Application of Insurance Proceeds. 
Grantor shall promptly notify Lender of any loss or damage to the
Collateral if the estimated cost of repair or replacement exceeds $5,000.00,
whether or not such casualty or loss is covered by insurance.  Lender may make proof of loss if Grantor
fails to do so within fifteen (15) days of the casualty.  All proceeds of any insurance on the
Collateral, including accrued proceeds thereon, shall be held by Lender as part
of the Collateral.  If Lender consents to
repair or replacement of the damaged or destroyed Collateral, Lender shall,
upon satisfactory proof of expenditure, pay or reimburse Grantor from the
proceeds for the reasonable cost of repair or restoration, If Lender does not
consent to repair or replacement of the Collateral, Lender shall retain a
sufficient amount of the proceeds to pay all of the Indebtedness, and shall pay
the balance to Grantor.  Any proceeds
which have not been disbursed within six (6) months after their receipt and
which Grantor has not committed to the repair or restoration of the Collateral
shall be used to prepay the Indebtedness.

Insurance Reserves.  Lender
may require Grantor to maintain with Lender reserves for payment of insurance
premiums, which reserves shall be created by monthly payments from Grantor of a
sum estimated by Lender to be sufficient to produce at least fifteen (15) days
before the premium due date, amounts at least equal to the insurance premiums
to be paid.  If fifteen (15) days before
payment is due, the reserve funds are insufficient, Grantor shall upon demand
pay any deficiency to Lender.  The
reserve funds shall be held by Lender as a general deposit and shall constitute
a non-interest-bearing account which Lender may satisfy by payment of the
insurance premiums required to be paid by Grantor as they become due.  Lender does not hold the reserve funds in
trust for Grantor, and Lender is not the agent of Grantor for payment of the
insurance premiums required to be paid by Grantor.  The responsibility for the payment of
premiums shall remain Grantor’s sale responsibility.

Insurance Reports.  Grantor,
upon request of Lender, shall furnish to Lender reports on each existing policy
of insurance showing such information as Lender may reasonably request
including the following:  (1) the
name of the insurer; (2) the risks insured; (3) the amount of the
policy; (4) the property insured; (5) the then current value on the
basis of which insurance has been obtained and the manner of determining that
value; and (6) the expiration date of the policy.  In addition, Grantor shall upon request by
Lender (however not more often than annually) have an independent appraiser satisfactory
to Lender determine, as applicable, the cash value or replacement cost of the
Collateral.

Financing Statements. 
Grantor authorizes Lender to file a UCC financing statement, or
alternatively, a copy of this Agreement to perfect Lender’s security
interest.  At Lender’s request, Grantor
additionally agrees to sign all other documents that are necessary to perfect,
protect, and continue Lender’s security interest in the Property.  This includes making sure Lender is shown as
the first and only security interest holder on the title covering the
Property.  Grantor will pay all filing
fees, title transfer fees, and other fees and costs involved unless prohibited
by law or unless Lender is required by law to pay such fees and costs.  Grantor irrevocably appoints Lender to
execute documents necessary to transfer title if there is a default.  Lender may file a copy of this Agreement as a
financing statement.  If Grantor changes Grantor’s
name or address, or the name or address of any person granting a security
interest under this Agreement changes, Grantor will promptly notify the Lender
of such change.

GRANTOR’S
RIGHT TO POSSESSION AND TO COLLECT ACCOUNTS.  Until
default and except as otherwise provided below with respect to accounts,
Grantor may have possession of the tangible personal property and beneficial
use of all the Collateral and may use it in any lawful manner not inconsistent
with this Agreement or the Related Documents, provided that Grantor’s right to
possession and beneficial use shall not apply to any Collateral where
possession of the Collateral by Lender is required by law to perfect Lender’s
security interest in such Collateral. 
Until otherwise notified by Lender, Grantor may collect any of the
Collateral consisting of accounts.  At
any time and even though no Event of Default exists, Lender may exercise its
rights to collect the accounts and to notify account debtors to make payments
directly to Lender for application to the Indebtedness.  If Lender at any time has possession of any
Collateral, whether before or after an Event of Default, Lender shall be deemed
to have exercised reasonable care in the custody and preservation of the
Collateral if Lender takes such action for that purpose as Grantor shall
request or as Lender, in Lender’s sole discretion, shall deem appropriate under
the circumstances, but failure to honor any request by Grantor shall not of
itself be deemed to be a failure to exercise reasonable care.  Lender shall not be required to take any
steps necessary to preserve any rights in the Collateral against prior parties,
nor to protect, preserve or maintain any security interest given to secure the
Indebtedness.

 3
 

LENDER’S
EXPENDITURES.  If any action or proceeding is commenced that
would materially affect Lender’s interest in the Collateral or if Grantor fails
to comply with any provision of this Agreement or any Related Documents,
including but not limited to Grantor’s failure to discharge or pay when due any
amounts Grantor is required to discharge or pay under this Agreement or any
Related Documents.  Lender on Grantor’s
behalf may (but shall not be obligated to) take any action that Lender deems
appropriate, including but not limited to discharging or paying all taxes,
liens, security interests, encumbrances and other claims, at any time levied or
placed on the Collateral and paying all costs for insuring, maintaining and
preserving the Collateral.  All such
expenditures incurred or paid by Lender for such purposes will then bear interest
at the rate charged under the Note from the date 

incurred
or paid by Lender to the date of repayment by Grantor.  All such expenses will become a part of the
Indebtedness and, at Lender’s option will (A) be payable on demand;
(B) be added to the balance of the Note and be apportioned among and be
payable with any installment payments to become due during either (1) the
term of any applicable insurance policy; or (2) the remaining term of the
Note; or (C) be treated as a balloon payment which will be due and payable
at the Note’s maturity.  The Agreement
also will secure payment of these amounts. 
Such right shall be in addition to all other rights and remedies to
which Lender may be entitled upon Default.

DEFAULT. 
Each of the following shall constitute an Event of Default under this
Agreement:

Payment Default.  Borrower
fails to make any payment when due under the Indebtedness.

Other Defaults.  Borrower
or Grantor fails to comply with or to perform any other term, obligation,
covenant or condition contained in this Agreement or in any of the Related
Documents or to comply with or to perform any term, obligation, covenant or
condition contained in any other agreement between Lender and Borrower or
Grantor.

False
Statements.  Any warranty, representation or statement
made or furnished to Lender by Borrower or Grantor or on Borrower’s or Grantor’s
behalf under this Agreement or the Related Documents is false or misleading in
any material respect, either now or at the time made or furnished or becomes
false or misleading at any time thereafter.

Defective Collateralization. 
This Agreement or any of the Related Documents ceases to
be in full force and effect (including failure of any collateral document to
create a valid and perfected security interest or lien) at any time and for any
reason.

Insolvency.  The
dissolution of Grantor (regardless of whether election to
continue is made), any member withdraws from the limited liability company, or
any other termination of Borrower’s or Grantor’s existence as a going business
or the death of any member, the insolvency of Borrower or Grantor, the
appointment of a receiver for any part of Borrower’s or Grantor’s property, any
assignment for the benefit of creditors, any type of creditor workout, or the
commencement of any proceeding under any bankruptcy or insolvency laws by or
against Borrower or Grantor.

Creditor or Forfeiture Proceedings. 
Commencement of foreclosure or forfeiture proceedings, whether by
judicial proceeding, self-help, repossession or any other method, by any
creditor of Borrower or Grantor or by any governmental agency against any
collateral securing the Indebtedness. 
This includes a garnishment of any of Borrower’s or Grantor’s accounts,
including deposit accounts, with Lender. 
However, this Event of Default shall not apply if there is a good faith
dispute by Borrower or Grantor as to the validity or reasonableness of the
claim which is the basis of the creditor or forfeiture proceeding and if
Borrower or Grantor gives Lender written notice of the creditor or forfeiture
proceeding and deposits with Lender monies or a surety bond for the creditor or
forfeiture proceeding, in an amount determined by Lender, in its sole
discretion, as being an adequate reserve or bond for the dispute.

Events Affecting Guarantor. 
Any of the preceding events occurs with respect to any guarantor,
endorser, surety, or accommodation party of any of the Indebtedness or
guarantor, endorser, surety, or accommodation party dies or becomes incompetent
or revokes or disputes the validity of, or liability under, any Guaranty of the
Indebtedness.

Adverse Change.  A
material adverse change occurs in Borrower’s or Grantor’s financial condition,
or Lender believes the prospect of payment or performance of the Indebtedness
is impaired.

Insecurity.  Lender
in good faith believes itself insecure.

RIGHTS
AND REMEDIES ON DEFAULT.  If an Event of Default occurs under this
Agreement, at any time thereafter, Lender shall have all the rights of a
secured party under the Florida Uniform Commercial Code.  In addition and without limitation, Lender
may exercise any one or more of the following rights and remedies:

Accelerate Indebtedness. 
Lender may declare the entire Indebtedness, including any prepayment
penalty which Borrower would be required to pay, immediately due and payable,
without notice of any kind to Borrower or Grantor.

Assemble Collateral. 
Lender may require Grantor to deliver to Lender all or any portion of
the Collateral and any and all certificates of title and other documents
relating to the Collateral.  Lender may
require Grantor to assemble the Collateral and make it available to Lender at a
place to be designated by Lender.  Lender
also shall have full power to enter upon the property of Grantor to take
possession of and remove the Collateral. 
If the Collateral contains other goods not covered by this Agreement at
the time of repossession, Grantor agrees Lender may take such other goods,
provided that Lender makes reasonable efforts to return them to Grantor after
repossession.

Sell the Collateral. 
Lender shall have full power to sell, lease, transfer, or otherwise deal
with the Collateral or proceeds thereof in Lender’s own name or that of
Grantor.  Lender may sell the Collateral
at public auction or private sale. 
Unless the Collateral threatens to decline speedily in value or is of a
type customarily sold on a recognized market, Lender will give Grantor, and
other persons as required by law, reasonable notice of the time and place of
any public sale, or the time after which any private sale or any other disposition
of the Collateral is to be made. 
However, no notice need be provided to any person who, after Event of
Default occurs, enters into and authenticates an agreement waiving that person’s
right to notification of sale.  The
requirements of reasonable notice shall be met if such notice is given at least
ten (10) days before the time of the sale or disposition.  All expenses relating to the disposition of
the Collateral, including without limitation the expenses of retaking, holding,
insuring, preparing for sale and selling the Collateral, shall become a part of
the Indebtedness secured by this Agreement and shall be payable on demand, with
interest at the Note rate from date of expenditure until repaid.

Appoint Receiver.  In the
event of a suit being instituted to foreclose this Agreement, Lender shall be
entitled to apply at any time pending such foreclosure suit to the court having
jurisdiction thereof for the appointment of a receiver of any or all of the
Collateral, and of all rents, incomes, profits, issues and revenues thereof,
from whatsoever source.  The parties
agree that the court shall forthwith appoint such receiver with the usual
powers and duties of receivers in like cases. 
Such appointment shall be made by the court as a matter of strict right
to Lender and without notice to Grantor, and without reference to the adequacy
or inadequacy of the value of the Collateral, or to Grantor’s solvency or any
other party defendant to such suit. 
Grantor hereby specifically waives the right to object to the appointment
of a receiver and agrees that such appointment shall be made as an admitted
equity and as a matter of absolute right to Lender, and consents to the
appointment of any officer or employee of Lender as receiver.  Lender shall have the right to have a
receiver appointed to take possession of all or any part of the Collateral,
with the power to protect and preserve the Collateral, to operate the
Collateral preceding foreclosure or sale, and to collect the Rents from the
Collateral and apply the proceeds, over and above the cost of the receivership,
against the Indebtedness.  The receiver
may serve without bond if permitted by law. 
Lender’s right to the appointment of a receiver shall exist whether or
not the apparent value of the Collateral exceeds the Indebtedness by a
substantial amount.  Employment by Lender
shall not disqualify a person from serving as a receiver.

 4
 

Collect
Revenues, Apply Accounts.  Lender, either itself or through a receiver,
may collect the payments, rents, income, and revenues from the Collateral.  Lender may at any time in Lender’s discretion
transfer any Collateral into Lender’s own name or that of Lender’s nominee and
receive the payments, rents, income, and revenues therefrom and hold the same
as security for the Indebtedness or apply it to payment of the Indebtedness in
such order of preference as Lender may determine.  Insofar as the Collateral consists of
accounts, general intangibles, insurance policies, instruments, chattel paper,
choses in action, or similar property, Lender may demand, collect, receipt for,
settle, compromise, adjust, sue for, foreclose, or realize on the Collateral as
Lender may determine, whether or not Indebtedness or Collateral is then
due.  For these purposes, Lender may, on
behalf of and in the name of Grantor, receive, open and dispose of mail
addressed to Grantor; change any address to which mail and payments are to be
sent; and endorse notes, checks, drafts, money orders, documents of title,
instruments and items pertaining to payment, shipment, or storage of any
Collateral.  To facilitate
collection.  Lender may notify account
debtors and obligors on any Collateral to make payments directly to Lender.

Obtain
Deficiency.  If Lender chooses to sell any or all of the
Collateral, Lender may obtain a judgment against Borrower for any deficiency
remaining on the Indebtedness due to Lender after application of all amounts
received from the exercise of the rights provided in this Agreement.  Borrower shall be liable for a deficiency
even if the transaction described in this subsection is a sale of accounts or
chattel paper.

Other
Rights and Remedies.  Lender shall have all the rights and remedies
of a secured creditor under the provisions of the Uniform Commercial Code, as
may be amended from time to time.  In
addition, Lender shall have and may exercise any or all other rights and
remedies it may have available at law, in equity, or otherwise.

Election
of Remedies.  Except as may be prohibited by applicable
law, all of Lender’s rights and remedies, whether evidenced by this Agreement,
the Related Documents, or by any other writing, shall be cumulative and may be
exercised singularly or concurrently. 
Election by Lender to pursue any remedy shall not exclude pursuit of any
other remedy, and an election to make expenditures or to take action to perform
an obligation of Grantor under this Agreement, after Grantor’s failure to
perform, shall not affect Lender’s right to declare a default and exercise its
remedies.

MISCELLANEOUS PROVISIONS. 
The following miscellaneous provisions are a part of this Agreement:

Amendments. 
This Agreement, together with any Related Documents, constitutes the
entire understanding and agreement of the parties as to the matters set forth
in this Agreement.  No alteration of or
amendment to this Agreement shall be effective unless given in writing and
signed by the party or parties sought to be charged or bound by the alteration
or amendment.

Attorneys’
Fees; Expenses.  Grantor agrees to pay upon demand all of
Lender’s costs and expenses, including Lender’s reasonable attorneys’ fees and
Lender’s legal expenses, incurred in connection with the enforcement of this
Agreement.  Lender may hire or pay
someone else to help enforce this Agreement, and Grantor shall pay the costs
and expenses of such enforcement.  Costs
and expenses include Lender’s reasonable attorneys’ fees and legal expenses
whether or not there is a lawsuit, including reasonable attorneys’ fees and
legal expenses for bankruptcy proceedings (including efforts to modify or vacate
any automatic stay or injunction), appeals, and any anticipated post-judgment
collection services.  Grantor also shall
pay all court costs and such additional fees as may be directed by the court.

Caption
Headings.  Caption headings in this Agreement are for
convenience purposes only and are not to be used to interpret or define the
provisions of this Agreement.

Governing
Law.  This Agreement will be
governed by federal law applicable to Lender and, to the extent not preempted
by federal law, the laws of the State of Florida without regard to its
conflicts of law provisions.  This
Agreement has been accepted by Lender in the State of Florida.

Choice
of Venue.  If there is a lawsuit, Grantor agrees upon
Lender’s request to submit to the jurisdiction of the courts of Pasco County,
State of Florida.

Joint
and Several Liability.  All obligations of Borrower and Grantor under
this Agreement shall be joint and several, and all references to Grantor shall
mean each and every Grantor, and all references to Borrower shall mean each and
every Borrower.  This means that each
Borrower and Grantor signing below is responsible for all obligations in this
Agreement.  Where any one or more of the
parties is a corporation, partnership, limited liability company or similar entity,
it is not necessary for Lender to inquire into the powers of any of the
officers, directors, partners, members, or other agents acting or purporting to
act on the entity’s behalf, and any obligations made or created in reliance
upon the professed exercise of such powers shall be guaranteed under this
Agreement.

No
Waiver by Lender.  Lender shall not be deemed to have waived any
rights under this Agreement unless such waiver is given in writing and signed
by Lender.  No delay or omission on the
part of Lender in exercising any right shall operate as a waiver of such right
or any other right.  A waiver by Lender
of a provision of this Agreement shall not prejudice or constitute a waiver of
Lender’s right otherwise to demand strict compliance with that provision or any
other provision of this Agreement.  No
prior waiver by Lender, nor any course of dealing between Lender and Grantor,
shall constitute a waiver of any of Lender’s rights or of any of Grantor’s
obligations as to any future transactions. 
Whenever the consent of Lender is required under this Agreement, the
granting of such consent by Lender in any instance shall not constitute
continuing consent to subsequent instances where such consent is required and
in all cases such consent may be granted or withheld in the sole discretion of
Lender.

Notices. 
Any notice required to be given under this Agreement shall be given in
writing, and shall be effective when actually delivered, when actually received
by telefacsimile (unless otherwise required by law), when deposited with a
nationally recognized overnight courier, or, if mailed, when deposited in the
United States mail, as first class, certified or registered mail postage
prepaid, directed to the addresses shown near the beginning of this Agreement.  Any party may change its address for notices
under this Agreement by giving written notice to the other parties, specifying
that the purpose of the notice is to change the party’s address.  For notice purposes, Grantor agrees to keep
Lender informed at all times of Grantor’s current address.  Unless otherwise provided or required by law,
if there is more than one Grantor, any notice given by Lender to any Grantor is
deemed to be notice given to all Grantors.

 5
 

Power
of Attorney.  Grantor hereby appoints Lender as Grantor’s
irrevocable attorney-in-fact for the purpose of executing any documents
necessary to perfect, amend, or to continue the security interest granted in
this Agreement or to demand termination of filings of other secured parties.  Lender may at any time, and without further
authorization from Grantor, file a carbon, photographic or other reproduction
of any financing statement or of this Agreement for use as a financing
statement.  Grantor will reimburse Lender
for all expenses for the perfection and the continuation of the perfection of
Lender’s security interest in the Collateral.

Severability.  If
a court of competent jurisdiction finds any provision of this Agreement to be
illegal, invalid, or unenforceable as to any circumstance, that finding shall
not make the offending provision illegal, invalid, or unenforceable as to any
other circumstance.  If feasible, the
offending provision shall be considered modified so that it becomes legal,
valid and enforceable.  If the offending
provision cannot be so modified, it shall be considered deleted from this
Agreement.  Unless otherwise required by
law, the illegality, invalidity, or unenforceability of any provision of this
Agreement shall not affect the legality, validity or enforceability of any other
provision of this Agreement.

Successors
and Assigns.  Subject to any limitations stated in this
Agreement on transfer of Grantor’s interest, this Agreement shall be binding
upon and inure to the benefit of the parties, their successors and
assigns.  If ownership of the Collateral
becomes vested in a person other than Grantor, Lender, without notice to
Grantor, may deal with Grantor’s successors with reference to this Agreement
and the Indebtedness by way of forbearance or extension without releasing Grantor
from the obligations of this Agreement or liability under the Indebtedness.

Survival
of Representations and Warranties.  All
representations, warranties, and agreements made by Grantor in this Agreement
shall survive the execution and delivery of this Agreement, shall be continuing
in nature, and shall remain in full force and effect until such time as
Borrower’s Indebtedness shall be paid in full.

Time
is of the Essence.  Time is of the essence in the performance of
this Agreement.

Waive
Jury.  All parties to this Agreement
hereby waive the right to any jury trial in any action, proceeding, or
counterclaim brought by any party against any other party.

DEFINITIONS.  The
following capitalized words and terms shall have the following meanings when
used in this Agreement.  Unless
specifically stated to the contrary, all references to dollar amounts shall
mean amounts in lawful money of the United States of America.  Words and terms used in the singular shall
include the plural, and the plural shall include the singular, as the context
may require.  Words and terms not
otherwise defined in this Agreement shall have the meanings attributed to such
terms in the Uniform Commercial Code:

Agreement.  The word “Agreement” means this Commercial
Security Agreement, as this Commercial Security Agreement may be amended or modified from time to time, together
with all exhibits and schedules attached to this Commercial Security Agreement
from time to time.

Borrower. 
The word “Borrower” means GTA-IB, LLC; GTA-IB Golf Resort, LLC; and
GTA-IB Condominium, LLC and includes all co-signers and co-makers signing the
Note and all their successors and assigns.

Collateral. 
The word “Collateral” means all of Grantor’s right, title and interest
in and to all the Collateral as described in the Collateral Description section
of this Agreement.

Default. 
The word “Default” means the Default set forth in this Agreement in the
section titled “Default”.

Environmental
Laws.  The words “Environmental Laws” mean any and
all state, federal and local statutes, regulations and ordinances relating to
the protection of human health or the environment, including without limitation
the Comprehensive Environmental Response, Compensation, and Liability Act of
1980, as amended, 42 U.S.C. Section 9601, et seq. (“CERCLA”), the Superfund
Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499 (“ SARA”), the
Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the
Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., or
other applicable state or federal laws, rules, or regulations adopted pursuant
thereto.

Event
of Default.  The words “Event of Default” mean any of the
events of default set forth in this Agreement in the default section of this
Agreement.

Grantor. 
The word “Grantor” means GTA-IB Condominium, LLC.

Guaranty. 
The word “Guaranty” means the guaranty from guarantor, endorser, surety,
or accommodation party to Lender, including without limitation a guaranty of
all or part of the Note.

Hazardous
Substances.  The words “Hazardous Substances” mean
materials that, because of their quantity, concentration or physical, chemical
or infectious characteristics, may cause or pose a present or potential hazard
to human health or the environment when improperly used, treated, stored,
disposed of, generated, manufactured, transported or otherwise handled.  The words “Hazardous Substances” are used in
their very broadest sense and include without limitation any and all hazardous
or toxic substances, materials or waste as defined by or listed under the
Environmental Laws.  The term “Hazardous
Substances” also includes, without limitation, petroleum and petroleum
by-products or any fraction thereof and asbestos.

Indebtedness. 
The word “Indebtedness” means the indebtedness evidenced by the Note or
Related Documents, including all principal and interest together with all other
indebtedness and costs and expenses for which Borrower is responsible under
this Agreement or under any of the Related Documents.

Lender. 
The word “Lender” means Patriot Bank, its successors and assigns.

Note. 
The word “Note” means the Note executed by GTA-IB, LLC; GTA-IB Golf
Resort, LLC; and GTA-IB Condominium, LLC in the principal amount of
$1,200,000.00 dated April 10, 2007, together with all renewals of, extensions
of, modifications of, refinancings of, consolidations of, and substitutions for
the note or credit agreement.

Property. 
The word “Property” means all of Grantor’s right, title and interest in
and to all the Property as described in the “Collateral Description” section of
this Agreement.

Related
Documents.  The words “Related Documents” mean all
promissory notes, credit agreements, loan agreements, environmental agreements,
guaranties, security agreements, mortgages, deeds of trust, security deeds,
collateral mortgages, and all other instruments, agreements and documents,
whether now or hereafter existing, executed in connection with the
Indebtedness.

 6
 

BORROWER AND GRANTOR HAVE READ AND UNDERSTOOD ALL
THE PROVISIONS OF THIS COMMERCIAL SECURITY AGREEMENT AND AGREE TO ITS
TERMS.  THIS AGREEMENT IS DATED APRIL 10,
2007.

	
  GRANTOR:

  
	
   

  
	
  GTA-IB CONDOMINIUM, LLC

  
	
   

  
	
  GTA-IB GOLF RESORT, LLC, Manager of GTA-IB
  Condominium, LLC

  
	
   

  
	
  GOLF TRUST OF AMERICA, LP, Manager of GTA-IB Golf
  Resort, LLC

  
	
   

  
	
   

  
	
  By: 

  	
   

  	
  /s/ R. Keith Wilt

  	
   

  
	
   

  	
   

  	
  R. Keith Wilt, Vice President of Golf Trust of
  America, LP

  

 

 7
 

 

	
  BORROWER:

  
	
   

  
	
  GTA-IB, LLC

  
	
   

  
	
  GTA-IB GOLF RESORT, LLC, Manager of GTA-lB, LLC

  
	
   

  
	
  GOLF TRUST OF AMERICA, LP, Manager of GTA-IB Golf
  Resort, LLC

  
	
  BY: 

  	
   

  	
  GTA, GP, INC., ITS GENERAL PARTNER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
   

  	
  /s/ R. Keith Wilt

  	
   

  
	
   

  	
   

  	
  R. Keith Wilt, Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  GTA-IB GOLF RESORT, LLC

  
	
   

  
	
  GOLF TRUST OF AMERICA, LP, Manager of GTA-IB Golf
  Resort, LLC

  
	
  BY: 

  	
   

  	
  GTA, GP, INC., ITS GENERAL PARTNER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ R. Keith Wilt

  	
   

  
	
   

  	
   

  	
  R. Keith Wilt, Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  GTA-IB CONDOMINIUM, LLC

  
	
   

  
	
  GTA-IB GOLF RESORT, LLC, Manager of GTA-IB
  Condominium, LLC

  
	
   

  
	
  GOLF TRUST OF AMERICA, LP, Manager of GTA-IB Golf
  Resort, LLC

  
	
  BY: 

  	
   

  	
  GTA, GP, INC., ITS GENERAL PARTNER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ R. Keith Wilt

  	
   

  
	
   

  	
   

  	
  R. Keith Wilt, Vice President

  
	
   

  	
   

  	
  GTA, GP, INC.

  
							

 

 8Exhibit
10.3

PROMISSORY NOTE

	
  Principal 

  $1,200,000.00

  	
  Loan
  Date 

  04-10-2007

  	
  Maturity
  

  04-10-2010

  	
  Loan No
  

  7000407.

  	
  Call /
  Coll

  	
  Account

  	
  Officer
  

  KJM

  	
  Initials

  
	
  References in
  the shaded area are for Lender’s use only and do not limit the applicability
  of this document to any particular loan or item.

  
	
  Any item above
  containing “***” has been omitted due to text length limitations.

  

 

	
  Borrower:

  	
   

  	
  GTA-IB, LLC; GTA-IB Golf Resort, LLC; and GTA-IB
  

  Condominium, LLC 

  701 Brickell Avenue, Suite 3000 

  Miami, FL 33131

  	
   

  	
  Lender:

  	
   

  	
  Patriot Bank 

  1815 Little Road 

  Trinity, FL 34655

  

 

	
  Principal Amount: $1,200,000.00

  	
   

  	
  Date
  of Note: April 10, 2007

  

 

PROMISE TO PAY.  GTA-IB, LLC;
GTA-IB Golf Resort, LLC; and GTA-IB Condominium, LLC (“Borrower”) jointly and
severally promise to pay to Patriot Bank (“Lender”), or order, in lawful money
of the United States of America, the principal amount of One Million Two
Hundred Thousand & 00/100 Dollars ($1,200,000.00), together with interest
on the unpaid principal balance from April 6, 2007, until paid in full.

PAYMENT.  Subject to
any payment changes resulting from changes in the Index, Borrower will pay this
loan in accordance with the following payment schedule:  8 monthly consecutive interest payments,
beginning May 10, 2007, with interest calculated on the unpaid principal
balances at an interest rate based on the Wall Street Journal Prime as
published in the “Money Section” of the Wall Street Journal (currently 8.250%),
resulting in an initial interest rate of 8.250%; 27 monthly consecutive
principal and interest payments in the initial amount of $10,219.38 each,
beginning January 10, 2008, with interest calculated on the unpaid principal
balances at an interest rate of 8.250% per annum; and one principal and
interest payment of $1,153.228.18 on April 10, 2010, with interest
calculated on the unpaid principal balances at an interest rate of 8.250% per
annum.  This estimated final payment is
based on the assumption that all payments will be made exactly as scheduled and
that the Index does not change; the actual final payment will be for all
principal and accrued interest not yet paid, together with any other unpaid
amounts under this Note.  Unless
otherwise agreed or required by applicable law, payments will be applied first
to any accrued unpaid interest; then to principal; then to any late charges;
and then to any unpaid collection costs. 
The annual interest rate for this Note is computed on a 365/360 basis;
that is, by applying the ratio of the annual interest rate over a year of 360
days, multiplied by the outstanding principal balance, multiplied by the actual
number of days the principal balance is outstanding.  Borrower will pay Lender at Lender’s address
shown above or at such other place as Lender may designate in writing.

VARIABLE INTEREST RATE.  The
interest rate on this Note is subject to change from time to time based on
changes in an independent index which is the Wall Street Journal Prime as
published in the “Money Section” of the Wall Street Journal (the “Index”). The
Index is not necessarily the lowest rate charged by Lender on its loans.  If the Index becomes unavailable during the
term of this loan, Lender may designate a substitute index after notifying
Borrower.  Lender will tell Borrower the
current Index rate upon Borrower’s request. 
The interest rate change will not occur more often than each day.  Borrower understands that Lender may make
loans based on other rates as well.  The Index currently is 8.250% per annum.  The interest rate or rates to be applied to
the unpaid principal balance during this Note will be the rate or rates set
forth herein in the “Payment” section. 
Notwithstanding any other provision of this Note, after the first
payment stream, the interest rate for each subsequent payment stream will be
effective as of the last payment date of the just-ending payment stream.  NOTICE: 
Under no circumstances will the effective rate of interest on this Note
be more than the maximum rate allowed by applicable law.  Whenever increases occur in the interest
rate, Lender, at its option, may do one or more of the following:  (A) increase Borrower’s payments to
ensure Borrower’s loan will pay off by its original final maturity date,
(B) increase Borrower’s payments to cover accruing interest,
(C) increase the number of Borrower’s payments, and (D) continue
Borrower’s payments at the same amount and increase Borrower’s final payment.

PREPAYMENT.  Borrower may pay without penalty
all or a portion of the amount owed earlier than it is due.  Early payments will not, unless agreed to by
Lender in writing, relieve Borrower of Borrower’s obligation to continue to
make payments under the payment schedule. 
Rather, early payments will reduce the principal balance due and may
result in Borrower’s making fewer payments. 
Borrower agrees not to send Lender payments marked “paid in full”, “without
recourse”, or similar language.  If
Borrower sends such a payment, Lender may accept it without losing any of
Lender’s rights under this Note, and Borrower will remain obligated to pay any
further amount owed to Lender.  All
written communications concerning disputed amounts, including any check or
other payment instrument that indicates that the payment constitutes “payment
in full” of the amount owed or that is tendered with other conditions or
limitations or as full satisfaction of a disputed amount must be mailed or
delivered to:  Patriot Bank, 1815 Little
Road, Trinity, FL 34655.

LATE CHARGE.  If a payment is 10 days or more
late, Borrower will be charged 5.000% of the regularly
scheduled payment.

INTEREST AFTER DEFAULT.  Upon
default, including failure to pay upon final maturity, the total sum due under
this Note will continue to accrue interest at the interest rate under this
Note, with the final interest rate described in this Note applying after
maturity, or after maturity would have occurred had there been no default.  However, in no event will the interest rate
exceed the maximum interest rate limitations under applicable law.

DEFAULT.  Each of the following shall
constitute an event of default (“Event of Default”) under this Note:

Payment
Default.  Borrower fails to make any payment when due
under this Note.

Other
Defaults.  Borrower fails to comply with or to perform
any other term, obligation, covenant or condition contained in this Note or in
any of the related documents or to comply with or to perform any term,
obligation, covenant or condition contained in any other agreement between
Lender and Borrower.

False
Statements.  Any warranty, representation or statement
made or furnished to Lender by Borrower or on Borrower’s behalf under this Note
or the related documents is false or misleading in any material respect, either
now or at the time made or furnished or becomes false or misleading at any time
thereafter.

Death or Insolvency.  The dissolution of Borrower (regardless of
whether election to continue is made), any member withdraws from Borrower, or
any other termination of Borrower’s existence as a going business or the death
of any member, the insolvency of Borrower, the appointment of a receiver for
any part of Borrower’s property, any assignment for the benefit of creditors,
any type of creditor workout, or the commencement of any proceeding under any
bankruptcy or insolvency laws by or against Borrower.

Creditor or
Forfeiture Proceedings.  Commencement of foreclosure or forfeiture
proceedings, whether by judicial proceeding, self-help, repossession or any
other method, by any creditor of Borrower or by any governmental agency against
any collateral securing the loan.  This
includes a garnishment of any of Borrower’s accounts, including deposit
accounts, with Lender.  However, this
Event of Default shall not apply if there is a good faith dispute by Borrower
as to the validity or reasonableness of the claim which is the basis of the
creditor or forfeiture proceeding and if Borrower gives Lender written notice
of the creditor or forfeiture proceeding and deposits with Lender monies or a
surety bond for the creditor or forfeiture proceeding, in an amount determined
by Lender, in its sole discretion, as being an adequate reserve or bond for the
dispute.

Events
Affecting Guarantor.  Any of the preceding events occurs with
respect to any guarantor, endorser, surety, or accommodation party of any of
the indebtedness or any guarantor, endorser, surety, or accommodation party
dies or becomes incompetent, or revokes or disputes the validity of, or
liability under, any guaranty of the indebtedness evidenced by this Note.  In the event of a death, Lender, at its
option, may, but shall not be required to, permit the guarantor’s estate to
assume unconditionally the obligations arising under the guaranty in a manner
satisfactory to Lender, and, in doing so, cure any Event of Default.

Adverse
Change.  A material adverse change occurs in Borrower’s
financial condition, or Lender believes the prospect of payment or performance
of this Note is impaired.

Insecurity.  Lender
in good faith believes itself insecure.

LENDER’S RIGHTS.  Upon default, Lender may declare
the entire unpaid principal balance under this Note and all accrued unpaid
interest immediately due, and then Borrower will pay that amount.

ATTORNEYS’ FEES; EXPENSES.  Lender
may hire or pay someone else to help collect this Note if Borrower does not
pay.  Borrower will pay Lender the amount
of these costs and expenses, which includes, subject to any limits under
applicable law, Lender’s reasonable attorneys’ fees and Lender’s legal expenses
whether or not there is a lawsuit, including reasonable attorneys’ fees and
legal expenses for bankruptcy proceedings (including efforts to modify or
vacate any automatic stay or injunction), and appeals.  If not prohibited by applicable law, Borrower
also will pay any court costs, in addition to all other sums provided by law.

JURY WAIVER.  Lender and
Borrower hereby waive the right to any jury trial in any action, proceeding, or
counterclaim brought by either Lender or Borrower against the other.

GOVERNING LAW.  This Note
will be governed by federal law applicable to Lender and, to the extent not
preempted by federal law, the laws of the State of Florida without regard to
its conflicts of law provisions.  This
Note has been accepted by Lender in the State of Florida.

CHOICE OF VENUE.  If there is a lawsuit, Borrower
agrees upon Lender’s request to submit to the jurisdiction of the courts of
Pasco County, State of Florida.

RIGHT OF SETOFF.  To the extent permitted by
applicable law, Lender reserves a right of setoff in all Borrower’s accounts
with Lender (whether checking, savings, or some other account). This includes
all accounts Borrower holds jointly with someone else and all accounts Borrower
may open in the future.  However, this
does not include any IRA or Keogh accounts, or any trust accounts for which
setoff would be prohibited by law. 
Borrower authorizes Lender, to the extent permitted by applicable law,
to charge or setoff all sums owing on the indebtedness against any and all such
accounts.

COLLATERAL.  Borrower acknowledges this Note
is secured by the following collateral described in the security instruments
listed herein:

(A)  a Mortgage dated April 10, 2007, to Lender on
real property located in Pinellas County, State of Florida.

(B)   an Assignment of All Rents to Lender on real
property located in Pinellas County, State of Florida.

(C)   inventory, chattel paper, accounts, equipment
and general intangibles described in a Commercial Security Agreement dated
April 10, 2007.

ANNUAL REVIEW.  This loan is subject to
continuation in the Lender’s sole discretion, based on the satisfactory annual
review and analysis of certain financial information as requested and received
by Lender.  The Annual Review Date will
be April 5th of each year, commencing 2008. At the time of the Annual Review,
an annual fee determined by Lender may be collected.

FURTHER ASSURANCE AND COMPLIANCE AGREEMENT. 
Borrower(s) and Guarantor(s) agree to cooperate, adjust, initial,
re-execute and re-deliver any and all closing documents, including but not
limited to any notes, security documents and closing statements if deemed
necessary or desirable in the sole discretion of the Bank in order to
consummate or complete the Loan from the Bank to the Borrower or to perfect the
Bank’s lien.  It is the intention of the
Borrower that all documentation for the Loan shall be an accurate reflection of
the Bank’s requirements.

MINIMUM PARTIAL RELEASE. 
Minimum partial release price per unit shall be the greater of either
100% of pro rata loan amount or 75% of sale price.

FULL PAYMENT.  Line of Credit due in full upon
sale of more than 25% interest in borrowing entity, sale of the Innisbrook
resort or of mortgage properties.

DRAW DOWN LINE OF CREDIT.  This
Note evidences a straight line of credit. 
Once the total amount of principal has been advanced, Borrower is not
entitled to further loan advances. 
Advances under this Note, as well as directions for payment from
Borrower’s accounts, may be requested orally or in writing by Borrower or by an
authorized person.  Lender may, but need
not, require that all oral requests be confirmed in writing.  The following party or parties are authorized
to request advances under the line of credit until Lender receives from
Borrower at Lender’s address shown above written notice of revocation of their
authority:  Keith Wilt.  Borrower agrees to be liable for all sums
either:  (A) advanced in accordance
with the instructions of an authorized person or (B) credited to any of
Borrower’s accounts with Lender.  The
unpaid principal balance owing on this Note at any time may be evidenced by
endorsements on this Note or by Lender’s internal records, including daily
computer print-outs.  Lender will have no
obligation to advance funds under this Note if (A) Borrower or any
guarantor is in default under the terms of this Note or any agreement that
Borrower or any guarantor has with Lender, including any agreement made in
connection with the signing of this Note; (B) Borrower or any guarantor
ceases doing business or is insolvent; (C) any guarantor seeks, claims or
otherwise attempts to limit, modify or revoke such guarantor’s guarantee of
this Note or any other loan with Lender; (D) Borrower has applied funds
provided pursuant to this Note for purposes other than those authorized by
Lender; or Lender in good faith deems itself insecure under this Note or any other
agreement between Lender and Borrower.

SUCCESSOR INTERESTS.  The terms of this Note shall be
binding upon Borrower, and upon Borrower’s heirs, personal representatives,
successors and assigns, and shall inure to the benefit of Lender and its
successors and assigns.

 2
 

NOTIFY US OF INACCURATE INFORMATION WE REPORT TO CONSUMER
REPORTING AGENCIES.  Please notify us if we report any inaccurate
information about your account(s) to a consumer reporting agency.  Your written notice describing the specific
inaccuracy(ies) should be sent to us at the following address:  Patriot Bank 1815 Little Road Trinity, FL
34655.

GENERAL PROVISIONS.  If any part of this Note cannot
be enforced, this fact will not affect the rest of the Note.  Borrower does not agree or intend to pay, and
Lender does not agree or intend to contract for, charge, collect, take, reserve
or receive (collectively referred to herein as “charge or collect”), any amount
in the nature of interest or in the nature of a fee for this loan, which would
in any way or event (including demand, prepayment, or acceleration) cause
Lender to charge or collect more for this loan than the maximum Lender would be
permitted to charge or collect by federal law or the law of the State of
Florida (as applicable). Any such excess interest or unauthorized fee shall,
instead of anything stated to the contrary, be applied first to reduce the
principal balance of this loan, and when the principal has been paid in full,
be refunded to Borrower.  Lender may
delay or forgo enforcing any of its rights or remedies under this Note without
losing them.  Each Borrower understands
and agrees that, with or without notice to Borrower, Lender may with respect to
any other Borrower (a) make one or more additional secured or unsecured
loans or otherwise extend additional credit; (b) alter, compromise, renew,
extend, accelerate, or otherwise change one or more times the time for payment
or other terms of any indebtedness, including increases and decreases of the
rate of interest on the indebtedness; (c) exchange, enforce, waive,
subordinate, fail or decide not to perfect, and release any security, with or
without the substitution of new collateral; (d) apply such security and
direct the order or manner of sale thereof, including without limitation, any
non-judicial sale permitted by the terms of the controlling security
agreements, as Lender in its discretion may determine; (e) release,
substitute, agree not to sue, or deal with any one or more of Borrower’s
sureties, endorsers, or other guarantors on any terms or in any manner Lender
may choose; and (f) determine how, when and what application of payments
and credits shall be made on any other indebtedness owing by such other
Borrower.  Borrower and any other person
who signs, guarantees or endorses this Note, to the extent allowed by law,
waive presentment, demand for payment, and notice of dishonor.  Upon any change in the terms of this Note,
and unless otherwise expressly stated in writing, no party who signs this Note,
whether as maker, guarantor, accommodation maker or endorser, shall be released
from liability.  All such parties agree
that Lender may renew or extend (repeatedly and for any length of time) this
loan or release any party or guarantor or collateral; or impair, fail to
realize upon or perfect Lender’s security interest in the collateral; and take
any other action deemed necessary by Lender without the consent of or notice to
anyone.  All such parties also agree that
Lender may modify this loan without the consent of or notice to anyone other
than the party with whom the modification is made.  The obligations under this Note are joint and
several.

PRIOR TO SIGNING THIS NOTE, EACH BORROWER READ AND UNDERSTOOD
ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS.  EACH BORROWER AGREES TO THE TERMS OF THE
NOTE.

BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS
PROMISSORY NOTE.

	
  BORROWER:

  
	
   

  
	
  GTA-IB, LLC

  
	
   

  
	
  GTA-IB GOLF RESORT, LLC, Manager of GTA-IB, LLC

  
	
   

  
	
  GOLF TRUST OF AMERICA, LP, Manager of GTA-IB Golf
  Resort, LLC

  
	
  BY: 

  	
   

  	
  GTA, GP, INC., ITS GENERAL PARTNER

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ R. Keith Wilt

  	
   

  
	
   

  	
   

  	
  R. Keith Wilt, Vice President

  
	
   

  	
   

  	
  GTA, GP, INC.

  
	
   

  
	
  GTA-IB GOLF RESORT, LLC

  
	
   

  
	
  GOLF TRUST OF AMERICA, LP, Manager of GTA-IB Golf
  Resort, LLC

  
	
  BY: 

  	
   

  	
  GTA, GP, INC., ITS GENERAL PARTNER

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ R. Keith Wilt

  	
   

  
	
   

  	
   

  	
  R. Keith Wilt, Vice President

  
	
   

  	
   

  	
  GTA, GP, INC.

  
	
   

  	
   

  	
   

  
	
  GTA-IB CONDOMINIUM, LLC

  
	
   

  
	
  GTA-IB GOLF RESORT, LLC, Manager of GTA-IB
  Condominium, LLC

  
	
   

  
	
  GOLF TRUST OF AMERICA, LP, Manager of GTA-IB Golf
  Resort, LLC

  
	
  BY: 

  	
   

  	
  GTA, GP, INC., ITS GENERAL PARTNER

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ R. Keith Wilt

  	
   

  
	
   

  	
   

  	
  R. Keith Wilt, Vice President

  
	
   

  	
   

  	
  GTA, GP, INC.

  
						

 

 3
 

 

	
  LENDER:

  
	
   

  
	
  PATRIOT BANK

  
	
   

  
	
  X

  	
   

  	
  /s/ Karyn J Mahorney

  	
   

  
	
   

  	
   

  	
  Karyn J Mahorney, VICE PRESIDENT

  

 

Florida
Documentary Stamp Tax

Florida
documentary stamp tax in the amount required by law has been paid with respect
to this Note on the Mortgage and Assignment of Rents securing this Note.

 4

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