GOLF TRUST OF AMERICA INC
EX-10.7
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<TYPE>EX-10.7
<SEQUENCE>8
<FILENAME>a04-8167_1ex10d7.htm
<DESCRIPTION>EX-10.7
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<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 10.7</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">LOAN
AGREEMENT</font></u></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Elk Funding, L.L.C.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c/o Starwood Capital Group Global, L.L.C.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">591 West Putnam Avenue</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Greenwich, CT&#160; 06830</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Hereinafter referred to as the &#147;Lender&#148;)</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Golf Trust of America, L.P.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14 N. Adger&#146;s Wharf</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Charleston, South Carolina&#160; 29401</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Individually and collectively &#147;Borrower&#148;)</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Loan Agreement (&#147;Agreement&#148;) is entered
into as of July&nbsp;15, 2004, by and between Lender and Borrower.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement applies to that certain loan
(the &#147;Loan&#148;) from Lender to Borrower in the amount of $2,000,000 evidenced by
that certain Promissory Note A in the amount of $700,000 and that certain
Promissory Note B in the amount of $1,300,000 each of even date herewith (&#147;Note
A&#148; and &#147;Note B&#148; respectively and, collectively, the &#147;Note&#148;).&#160; The terms &#147;Loan Documents&#148; and
&#147;Obligations,&#148; as used in this Agreement, are defined in Note A and Note B,
respectively.&#160; Note A is non-recourse to
Borrower as provided therein and is secured by that certain Assignment of
Defense and Escrow Agreement (the &#147;Assignment&#148;) from Borrower to Lender of even
date herewith.&#160; Notwithstanding anything
contained in any Loan Document to the contrary, Note B is full recourse to
Borrower and is secured by (i) the Assignment, and (ii) those certain two
Mortgage, Assignment of Rents, Security Agreement and Fixture Filing agreements
executed by Borrower for the benefit of Lender encumbering certain real and
personal property known as the Black Bear Golf Club and the Wekiva Golf Club as
more particularly described therein (collectively, the &#147;Mortgage&#148;).&#160; A default under Note A shall constitute a
default under Note B and vice versa.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Relying upon the covenants, agreements,
representations and warranties contained in this Agreement, Lender is willing
to extend credit to Borrower upon the terms and subject to the conditions set
forth herein, and Lender and Borrower agree as follows:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">REPRESENTATIONS.</font></b>&#160; Borrower represents that from the date of
this Agreement and until final payment in full of the Obligations:&#160; <b><font style="font-weight:bold;">Accurate Information</font></b>.&#160; All information now and hereafter furnished
to Lender is and will be materially true, correct and complete.&#160; <b><font style="font-weight:bold;">Authorization; Non-Contravention</font></b>.&#160; The execution, delivery and performance by
Borrower of this Agreement and other Loan Documents to which it is a party are
within its power, have been duly authorized as may be required and are the
legal, binding, valid and enforceable obligations of Borrower; and do not (i)
contravene, or constitute (with or without the giving of notice or lapse of
time or both) a violation of any provision of applicable law, a violation of
the organizational documents of Borrower, or a default under any agreement,
judgment, injunction, order, decree or other instrument binding upon or
affecting Borrower, (ii) result in the creation or imposition of any lien
(other than the lien(s) created by the Loan Documents) on any of Borrower&#146;s
assets, or (iii) give cause for the acceleration of any obligations of Borrower
to any</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1</font></p>


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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">other creditor.&#160; <b><font style="font-weight:bold;">Asset Ownership.</font></b>&#160;
Borrower has good and marketable title to any collateral.&#160; <b><font style="font-weight:bold;">Discharge of Liens and Taxes.</font></b>&#160; Borrower has duly filed, paid and/or
discharged all taxes or other claims that may become a lien on any collateral,
except to the extent that such items are being appropriately contested in good
faith and an adequate reserve for the payment thereof is being maintained.&#160; <b><font style="font-weight:bold;">Compliance with Laws.</font></b>&#160; To its knowledge, Borrower is in material
compliance in all respects with all federal, state and local laws, rules and regulations
applicable to any collateral.&#160; <b><font style="font-weight:bold;">No
Litigation.</font></b>&#160; There are no
material pending or threatened suits, claims or demands against Borrower that
have not been disclosed by Borrower.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">AFFIRMATIVE
COVENANTS.</font></b>&#160;
Borrower agrees that from the date hereof and until final payment in
full of the Obligations, unless Lender shall otherwise consent in writing,
Borrower will:&#160; <b><font style="font-weight:bold;">Access to Books and Records.</font></b>&#160; Allow Lender, or its agents, during normal
business hours, access to the books, records and such other documents related
to any collateral as Lender shall reasonably require, and allow Lender, at
Borrower&#146;s expense, to inspect, audit and examine the same and to make extracts
therefrom and to make copies thereof.&#160; <b><font style="font-weight:bold;">Compliance
with Other Agreements.</font></b>&#160;
Comply with all terms and conditions contained in this Agreement, and
any other Loan Documents.&#160; <b><font style="font-weight:bold;">Estoppel
Certificate.</font></b>&#160; Furnish, within
15 days after request by Lender, a written statement duly acknowledged of the
amount due under the Loan and whether offsets or defenses exist against the
Obligations.&#160; <b><font style="font-weight:bold;">Insurance.</font></b>&#160; Maintain adequate insurance coverage with
respect to any collateral against loss or damage of the kinds and in the
amounts customarily insured against by companies of established reputation
engaged in the same or similar businesses.&#160;
<b><font style="font-weight:bold;">Maintain
Properties.</font></b>&#160; Maintain,
preserve and keep any collateral in good repair, working order and condition,
making all replacements, additions and improvements thereto necessary for the
proper conduct of its business, unless prohibited by the Loan Documents.&#160; <b><font style="font-weight:bold;">Notice of Default and Other Notices.</font></b>&#160; (a) <b><font style="font-weight:bold;">Notice of Default.</font></b>&#160; Furnish to Lender immediately upon becoming
aware of the existence of any condition or event which constitutes a Default
(as defined in the Loan Documents) or any event which, upon the giving of
notice or lapse of time or both, may become a Default, written notice
specifying the nature and period of existence thereof and the action which
Borrower is taking or proposes to take with respect thereto.&#160; (b) <b><font style="font-weight:bold;">Other Notices.</font></b>&#160; Promptly notify Lender in writing of (i) any material adverse
change with respect to collateral; and (ii) at least 30 days prior thereto, any
change in Borrower&#146;s name or address as shown above, and/or any change in
Borrower&#146;s structure.&#160; <b><font style="font-weight:bold;">Reports and
Proxies.</font></b>&#160; Deliver to Lender,
promptly, a copy of all financial statements, reports, notices, and all regular
or periodic reports required to be filed by Borrower with any governmental
agency or authority.</p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">NEGATIVE
COVENANTS.</font></b>&#160;
Borrower agrees that from the date hereof and until final payment in
full of the Obligations, unless Lender shall otherwise consent in writing,
Borrower will not:&#160; <b><font style="font-weight:bold;">Default on Other Contracts or
Obligations.</font></b>&#160; Default on any
material contract with or obligation when due with respect to any collateral.&#160; <b><font style="font-weight:bold;">Government Intervention.</font></b>&#160; Permit the assertion or making of any
seizure, vesting or intervention by or under authority of any governmental
entity with respect to any collateral.&#160; <b><font style="font-weight:bold;">Judgment
Entered.</font></b>&#160; Permit the entry of
any monetary judgment or the assessment against, the filing of any tax lien
against, or the issuance of any writ of garnishment or attachment against any
collateral.&#160; <b><font style="font-weight:bold;">Limitation on Transfer or Issuance of
Membership Interests of Borrower.</font></b>&#160;
So long as any portion of the Loan remains outstanding, Golf Trust of
America, Inc. (&#147;GTA&#148;) shall not, directly or indirectly, transfer or otherwise
dispose of all or any part of its interest in Borrower, except that GTA (or its
wholly owned subsidiaries) may transfer their ownership interests in the
Borrower to a wholly controlled</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>


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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">affiliate or wholly owned subsidiary of
Borrower, or to a liquidating trust as described in GTA&#146;s proxy statement dated
April&nbsp;6, 2001.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ADVANCES.</font></b>&#160; The Loan shall be fully funded at closing
and the proceeds of the Loan shall be delivered to Borrower by federal wire
transfer to the deposit account referenced in the wiring instructions attached
hereto as <u>Exhibit A</u>.</p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">CONDITIONS
PRECEDENT.</font></b>&#160; The
obligations of Lender to make the loan and any advances pursuant to this
Agreement are subject to the following conditions precedent:&#160; <b><font style="font-weight:bold;">Additional Documents.</font></b>&#160; Receipt by Lender of such additional
supporting documents as Lender or its counsel may reasonably request.</p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ASSIGNMENT.</font></b>&#160; Notwithstanding anything else contained in
the Loan Documents, the Loan and Loan Documents and the respective parties&#146;
right, title, and interest therein shall not be assigned by Lender or Borrower
without the express written consent of the other, which consent may be withheld
in such other party&#146;s sole discretion, except (i) Lender may assign its right,
title, and interest in the Loan and Loan Documents to a wholly controlled
affiliate or wholly owned subsidiary of Lender without the consent of Borrower,
and (ii) Borrower may assign its right, title, and interest in the Loan and
Loan Documents to a wholly controlled affiliate or wholly owned subsidiary of
Borrower, or to a liquidating trust as described in GTA&#146;s proxy statement dated
April&nbsp;6, 2001.</p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">IN
WITNESS WHEREOF</font></b>, Borrower and Lender, on the day and
year first written above, have caused this Agreement to be executed under seal.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">GOLF TRUST OF AMERICA, L.P.</font></p>
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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By: GTA GP, Inc., its general partner</font></p>
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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/&nbsp;&nbsp;W. Bradley Blair, II</font></p>
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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#160;(SEAL)</font></p>
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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name: W. Bradley Blair, II</font></p>
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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title: President and CEO</font></p>
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  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="38%" colspan="5" valign="top" style="padding:0in 0in 0in 0in;width:38.72%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="22%" valign="top" style="padding:0in 0in 0in 0in;width:22.28%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
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  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">ELK FUNDING, L.L.C.</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0in 0in 0in 0in;width:22.28%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
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  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="38%" colspan="5" valign="top" style="padding:0in 0in 0in 0in;width:38.72%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="22%" valign="top" style="padding:0in 0in 0in 0in;width:22.28%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
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  <td width="39%" valign="top" style="padding:0in 0in 0in 0in;width:39.0%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="38%" colspan="5" valign="top" style="padding:0in 0in 0in 0in;width:38.72%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="22%" valign="top" style="padding:0in 0in 0in 0in;width:22.28%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
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  <td width="39%" valign="top" style="padding:0in 0in 0in 0in;width:39.0%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:3.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="7%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:7.4%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="27%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:27.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/&nbsp;&nbsp;Jerome Silvey</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0in 0in 0in 0in;width:22.28%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
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  <td width="39%" valign="top" style="padding:0in 0in 0in 0in;width:39.0%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:3.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Its:</font></p>
  </td>
  <td width="7%" valign="top" style="padding:0in 0in 0in 0in;width:7.4%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="27%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:27.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EVP</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0in 0in 0in 0in;width:22.28%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>


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</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="center" style="layout-grid-mode:char;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">PROMISSORY NOTE A</font></b></p>

<p align="center" style="layout-grid-mode:char;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(Non-Recourse)</font></b></p>

<p align="center" style="layout-grid-mode:char;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$700,000.00</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">July&nbsp;15, 2004</font></p>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Golf Trust of America, L.P.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14 N. Adger&#146;s Wharf</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Charleston, South Carolina&#160;
29401</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Hereinafter referred to as &#147;Borrower&#148;)</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Elk Funding, L.L.C.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c/o Starwood Capital Group, L.L.C.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">591 West Putnam Avenue</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Greenwich, CT&#160; 06830</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Hereinafter referred to as &#147;Lender&#148;)</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">Borrower promises to pay to the order of
Lender, in lawful money of the United States of America, at its office
indicated above or wherever else Lender may specify, the sum of Seven Hundred
Thousand and No/100 Dollars (</font>$700,000.00) or such sum as may be advanced and outstanding from time to time, with
interest on the unpaid principal balance at the rate and on the terms provided
in this Promissory Note A (including all renewals, extensions or modifications
hereof, this &#147;Note&#148;).</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">LOAN AGREEMENT.</font></b>&#160; This Note is subject to the provisions of
that certain Loan Agreement between Lender and Borrower of even date herewith,
as modified from time to time.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;layout-grid-mode:char;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECURITY.</font></b>&nbsp;
Borrower has granted Lender a security interest in the collateral described in
that certain Assignment of Defense and Escrow Agreement (the &#147;Assignment&#148;) from
Borrower to Lender of even date herewith and is otherwise non-recourse to
Borrower as set forth below.</p>

<p style="layout-grid-mode:char;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">INTEREST RATE.</font></b>&#160; Interest
shall accrue on the unpaid principal balance of this Note from the date hereof
at the prime rate of Bank of America, N.A., or its successor in interest (as
announced by Bank of America, N.A., or its successor in interest, from time to
time) plus 1.0%, as that rate may change from time to time (&#147;Interest Rate&#148;).&#160; The Interest Rate shall be compounded
monthly but shall be adjusted each month on the first business day of each
month.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">REPAYMENT TERMS.</font></b>&#160; Payments
of interest shall accrue during the term of the Note and all principal and
accrued interest shall be due and payable on September&nbsp;30, 2006 (the
&#147;Maturity Date&#148;), subject to the extension described in the following
paragraph.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXTENSION.</font></b>&#160; Provided
that the closing date for the sale of Parcel F (as more particularly described
in that certain Parcel F Development Agreement recorded in the public records
for Pinellas County, Florida in O.R. Book 13496 at page 480) to Parcel F,
L.L.C. is extended until</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>


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</font></div>

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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">December&nbsp;31, 2006 or later, the Maturity
Date shall be extended until December&nbsp;31, 2006 upon the request of the
Borrower.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">APPLICATION OF
PAYMENTS.</font></b>&#160; Monies received by Lender from any source
for application toward payment of the Obligations shall be applied to accrued
interest and then to principal.&#160; If any
payment received by Lender under this Note or other Loan Documents is
rescinded, avoided or for any reason returned by Lender because of any adverse
claim or threatened action, the returned payment shall remain payable as an
obligation of all persons liable under this Note or other Loan Documents as
though such payment had not been made.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">DEFINITIONS.&#160; Loan Documents.</font></b>&#160; The term
&#147;Loan Documents&#148;, as used in this Note and the other Loan Documents, refers to
the Loan Agreement, this Note, Note B, the Mortgages, and the Assignment.&#160; <b><font style="font-weight:bold;">Obligations.</font></b>&#160; The term &#147;Obligations&#148;, as used in this Note
and with respect thereto in the other Loan Documents, refers to any and all
indebtedness and other obligations under this Note and all other obligations
under any other Loan Document(s) but specifically excludes any obligations with
respect to Promissory Note B.&#160; <b><font style="font-weight:bold;">Certain Other Terms.</font></b>&#160; All terms that are used but not otherwise
defined in any of the Loan Documents shall have the definitions provided in the
Uniform Commercial Code.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">DEFAULT RATE.</font></b>&#160; In addition
to all other rights contained in this Note, if a Default (as defined herein)
occurs and as long as a Default continues, all outstanding Obligations,
other than Obligations under any swap agreements (as defined in 11 U.S.C.
&#167;&nbsp;101) between Borrower and Bank or its affiliates, shall bear interest at the Interest Rate <u>plus</u> 5.0% (&#147;Default
Rate&#148;).&#160; The Default Rate shall also
apply from acceleration until the Obligations or any judgment thereon is paid
in full.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ATTORNEYS&#146; FEES AND
OTHER COLLECTION COSTS.</font></b>&#160; Borrower shall pay all of
Lender&#146;s reasonable expenses incurred to enforce or collect any of the
Obligations including, without limitation, reasonable arbitration, paralegals&#146;,
attorneys&#146; and experts&#146; fees and expenses, whether incurred without the commencement
of a suit, in any trial, arbitration, or administrative proceeding, or in any
appellate or bankruptcy proceeding.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">USURY.</font></b>&#160; If at
any time the effective interest rate under this Note would, but for this
paragraph, exceed the maximum lawful rate, the effective interest rate under
this Note shall be the maximum lawful rate, and any amount received by Lender
in excess of such rate shall be applied to principal and then to fees and
expenses, or, if no such amounts are owing, returned to Borrower.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">DEFAULT.</font></b>&#160; If any
of the following occurs, a default (&#147;Default&#148;) under this Note shall
exist:&#160; <b><font style="font-weight:bold;">Nonpayment; Nonperformance.</font></b>&#160;
The failure of timely payment or performance of the Obligations or
Default under this Note or any other Loan Documents after written notice or a
15 day cure period (90 days in the case of a non-monetary Default).&#160; <b><font style="font-weight:bold;">False
Warranty.</font></b>&#160; A warranty or
representation made or deemed made in the Loan Documents or furnished Lender in
connection with the loan evidenced by this Note proves materially false, or if
of a continuing nature, becomes materially false.&#160; <b><font style="font-weight:bold;">Cessation; Bankruptcy.</font></b>&#160; The death of, appointment of a guardian for,
dissolution of, termination of existence of, loss of good standing status by,</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

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</font></div>

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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">appointment of a receiver for, assignment for
the benefit of creditors of, or commencement of any bankruptcy or insolvency
proceeding by or against Borrower, its Subsidiaries or Affiliates, if any, or
any general partner of or the holder(s) of the majority ownership interests of
Borrower, or any party to the Loan Documents.&#160;
<b><font style="font-weight:bold;">Default
Under Note B.</font></b>&#160; Any uncured
default under Note B.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">REMEDIES UPON DEFAULT.</font></b>&#160; If a Default occurs under this Note or any
Loan Document, Lender may at any time thereafter, take the following
actions:&nbsp; <b><font style="font-weight:bold;">Lender Lien.</font></b>&#160; Foreclose its security interest or lien
against the collateral.&#160; <b><font style="font-weight:bold;">Acceleration Upon Default.</font></b>&#160; Accelerate the maturity of this Note
whereupon this Note and the accelerated Obligations shall be immediately due
and payable; provided, however, if the Default is based upon a bankruptcy or
insolvency proceeding commenced by or against Borrower or any guarantor or
endorser of this Note, all Obligations shall automatically and immediately be
due and payable.&#160; <b><font style="font-weight:bold;">Cumulative.</font></b>&#160; Exercise any rights and remedies as provided under the Note and
other Loan Documents, or as provided by law or equity.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">RECOURSE.</font></b>&#160; Notwithstanding anything contained herein or
in any Loan Document to the contrary, this Note shall be non-recourse to the
Borrower except as specifically set forth in Schedule&nbsp;A.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WAIVERS AND
AMENDMENTS.</font></b>&#160; No waivers, amendments or modifications of
this Note and other Loan Documents shall be valid unless in writing and signed
by an officer of Lender.&#160; No waiver by
Lender of any Default  shall operate
as a waiver of any other Default or the same Default on a future occasion.&#160; Neither the failure nor any delay on the
part of Lender in exercising any right, power, or remedy under this Note and
other Loan Documents shall operate as a waiver thereof, nor shall a single or
partial exercise thereof preclude any other or further exercise thereof or the
exercise of any other right, power or remedy.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Except to the extent otherwise provided by the Loan Documents or
prohibited by law, each Borrower and each other person liable under this Note
waives presentment, protest, notice of dishonor, demand for payment, notice
of intention to accelerate maturity, notice of acceleration of maturity, notice
of sale and all other notices of any kind.&#160;
Further, each agrees that Lender may (i) extend, modify or renew this Note or make a novation of the loan
evidenced by this Note, and/or (ii) grant releases, compromises or
indulgences with respect to any collateral securing this Note, or with respect
to any Borrower or other person liable under this Note or any other Loan
Documents, all without notice to or consent of each Borrower and other such
person, and without affecting the liability of each Borrower and other such
person; provided, Lender may not extend, modify or renew this Note or make a
novation of the loan evidenced by this Note without the consent of the
Borrower, or if there is more than one Borrower, without the consent of at
least one Borrower; and further provided, if there is more than one Borrower,
Lender may not enter into a modification of this Note which increases the
burdens of a Borrower without the consent of that Borrower.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">MISCELLANEOUS
PROVISIONS.&#160; Assignment.</font></b>&#160; This
Note and the other Loan Documents shall inure to the benefit of and be binding
upon the parties and their respective heirs, legal representatives, successors
and assigns.&#160; Neither Borrower nor
Lender shall assign their respective rights and interest hereunder without the
prior written consent of the other, and any</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">attempt by either to assign without the
other&#146;s prior written consent is null and void.&#160; <b><font style="font-weight:bold;">Applicable Law; Conflict
Between Documents.</font></b>&#160; This Note
and, unless otherwise provided in any other Loan Document, the other Loan
Documents shall be governed by and construed</font>  under the laws of the state of Florida without
regard to that state&#146;s conflict of laws principles.&#160; If the terms of this Note should conflict with the terms of any
Loan Documents or the terms of this Note shall control.&#160; <b><font style="font-weight:bold;">Jurisdiction.</font></b>&#160; Borrower irrevocably agrees to non-exclusive
personal jurisdiction in the state of Florida.&#160;
<b><font style="font-weight:bold;">Severability.</font></b>&#160; If any provision of this Note or of the
other Loan Documents shall be prohibited or invalid under applicable law, such
provision shall be ineffective but only to the extent of such prohibition or
invalidity, without invalidating the remainder of such provision or the
remaining provisions of this Note or other such document.&#160; <b><font style="font-weight:bold;">Notices.</font></b>&#160; Any notices required hereunder shall be
sufficiently given, if in writing and mailed or delivered to the address shown
above or such other address as may be specified in writing from time to
time.&#160; In the event that Borrower
changes Borrower&#146;s address at any time prior to the date the Obligations are
paid in full, Borrower agrees to promptly give written notice of said change of
address by registered or certified mail, return receipt requested, all charges
prepaid.&#160; <b><font style="font-weight:bold;">Plural; Captions.</font></b>&#160; All
references in the Loan Documents to Borrower, guarantor, person, document or
other nouns of reference mean both the singular and plural form, as the case
may be, and the term &#147;person&#148; shall mean any individual, person or entity.&#160; The captions contained in the Loan Documents
are inserted for convenience only and shall not affect the meaning or
interpretation of the Loan Documents.&#160; <b><font style="font-weight:bold;">Advances.</font></b>&#160;
Lender may, in its sole discretion, make other advances which shall be
deemed to be advances under this Note, even though the stated principal amount
of this Note may be exceeded as a result thereof.&#160; <b><font style="font-weight:bold;">Fees and Taxes.</font></b>&#160; Borrower shall promptly pay all documentary,
intangible recordation and/or similar taxes on this transaction whether
assessed at closing or arising from time to time.&#160; <b><font style="font-weight:bold;">LIMITATION ON LIABILITY;
WAIVER OF PUNITIVE DAMAGES. </font></b>EACH OF THE PARTIES HERETO, INCLUDING
LENDER BY ACCEPTANCE HEREOF, AGREES THAT IN ANY JUDICIAL, MEDIATION OR
ARBITRATION PROCEEDING OR ANY CLAIM OR CONTROVERSY BETWEEN OR AMONG THEM THAT
MAY ARISE OUT OF OR BE IN ANY WAY CONNECTED WITH THIS AGREEMENT, THE LOAN
DOCUMENTS OR ANY OTHER AGREEMENT OR DOCUMENT BETWEEN OR AMONG THEM OR THE
OBLIGATIONS EVIDENCED HEREBY OR RELATED HERETO, IN NO EVENT SHALL ANY PARTY
HAVE A REMEDY OF, OR BE LIABLE TO THE OTHER FOR, (1) INDIRECT, SPECIAL OR
CONSEQUENTIAL DAMAGES OR (2) PUNITIVE OR EXEMPLARY DAMAGES.&#160; EACH OF THE PARTIES HEREBY EXPRESSLY WAIVES
ANY RIGHT OR CLAIM TO PUNITIVE OR EXEMPLARY DAMAGES THEY MAY HAVE OR WHICH MAY
ARISE IN THE FUTURE IN CONNECTION WITH ANY SUCH PROCEEDING, CLAIM OR
CONTROVERSY, WHETHER THE SAME IS RESOLVED BY ARBITRATION, MEDIATION, JUDICIALLY
OR OTHERWISE.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WAIVER OF JURY TRIAL.</font></b>&#160; TO THE
EXTENT PERMITTED BY APPLICABLE LAW, EACH OF<i><font style="font-style:italic;">  </font></i>BORROWER<i><font style="font-style:italic;">  </font></i>BY EXECUTION HEREOF AND LENDER BY
ACCEPTANCE HEREOF, KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT
EACH MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED ON, OR
ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS NOTE, THE LOAN DOCUMENTS OR
ANY AGREEMENT CONTEMPLATED TO BE EXECUTED IN CONNECTION WITH THIS<i><font style="font-style:italic;">  </font></i>NOTE, OR ANY COURSE OF CONDUCT, COURSE OF
DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">PARTY WITH RESPECT HERETO.&#160; THIS PROVISION IS A MATERIAL INDUCEMENT TO
LENDER TO ACCEPT THIS<i><font style="font-style:italic;">  </font></i>NOTE<i><font style="font-style:italic;">.</font></i>&#160; </font>EACH
OF THE PARTIES AGREES THAT THE TERMS HEREOF SHALL SUPERSEDE AND REPLACE ANY
PRIOR AGREEMENT RELATED TO ARBITRATION OF DISPUTES BETWEEN THE PARTIES
CONTAINED IN ANY LOAN DOCUMENT OR ANY OTHER DOCUMENT OR AGREEMENT HERETOFORE
EXECUTED IN CONNECTION WITH, RELATED TO OR BEING REPLACED, SUPPLEMENTED,
EXTENDED OR MODIFIED BY, THIS NOTE.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">IN WITNESS WHEREOF</font></b>, Borrower, on the day and year first above
written, has caused this Note to be executed under seal.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">PLACE OF EXECUTION AND DELIVERY.</font></b>&#160; Borrower hereby certifies that this Note and
the Loan Documents were executed in the State of Florida and delivered to
Lender in the State of Florida.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="37%" valign="top" style="padding:0in 0in 0in 0in;width:37.58%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="62%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:62.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Taxpayer Identification Number:&#160;
  58-22888961</font></p>
  </td>
 </tr>
 <tr>
  <td width="37%" valign="top" style="padding:0in 0in 0in 0in;width:37.58%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="62%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:62.42%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="37%" valign="top" style="padding:0in 0in 0in 0in;width:37.58%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="62%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:62.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">GOLF TRUST OF AMERICA, L.P.</font></p>
  </td>
 </tr>
 <tr>
  <td width="37%" valign="top" style="padding:0in 0in 0in 0in;width:37.58%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="62%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:62.42%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="37%" valign="top" style="padding:0in 0in 0in 0in;width:37.58%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="62%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:62.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By: GTA GP, Inc., its general partner</font></p>
  </td>
 </tr>
 <tr>
  <td width="37%" valign="top" style="padding:0in 0in 0in 0in;width:37.58%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="62%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:62.42%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="37%" valign="top" style="padding:0in 0in 0in 0in;width:37.58%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="62%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:62.42%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="37%" valign="top" style="padding:0in 0in 0in 0in;width:37.58%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.28%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="19%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:19.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/&nbsp;&nbsp;W. Bradley Blair, II</font></p>
  </td>
  <td width="40%" valign="top" style="padding:0in 0in 0in 0in;width:40.08%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="37%" valign="top" style="padding:0in 0in 0in 0in;width:37.58%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="62%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:62.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:&#160; W. Bradley Blair, II</font></p>
  </td>
 </tr>
 <tr>
  <td width="37%" valign="top" style="padding:0in 0in 0in 0in;width:37.58%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="62%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:62.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title: President and CEO</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SCHEDULE&nbsp;A</font></u></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Carve-Out Acts</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Note shall be recourse to Borrower to
the extent set forth more particularly below in the event of the occurrence of
the following actions by the Borrower, or its affiliates, which are referred to
herein as the &#147;Limited Recourse Acts&#148;:&#160;
(A) fraud or willful misconduct of Borrower or its affiliates the
Premises (as defined in the Mortgage), (B) damage or destruction of Premises
caused by Borrower or its affiliates, (C) failure to use any proceeds of the
Premises which are, at the time of receipt, required for the payment of debt
service, and/or the payment of amounts which are then due and payable to the
Lender, to the extent of the loss suffered by Lender therefrom; (D)
misappropriation of condemnation or insurance proceeds, or other funds or
similar proceeds from the Premises, to the extent of the loss suffered by
Lender therefrom; (E) failure to pay real estate taxes or to make sufficient
funds available through escrow to pay real estate taxes related to the
Premises, before they become delinquent, to the extent of the loss suffered by
Lender therefrom; (F) the removal of any material personal Premises, fixtures
and equipment from the Premises by or on behalf of Borrower and the failure to
replace same with items of the same utility and the same or greater value, to
the extent of the loss suffered by Lender therefrom; (G) [Reserved]; (H) if, in
the event of default by Borrower, the Lender notifies Borrower that Borrower or
any other party is taking actions, other than pursuant to Borrower&#146;s or such
party&#146;s rights under the Loan Documents or at law, solely for the purpose of
hindering impairing or delaying the legitimate exercise by the Lender of its
rights and remedies under the Loan Documents and such actions are not stopped
or rescinded within ten (10) days after the date of such notice, to the extent
of the loss suffered by Lender therefrom.</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Unless cured within the period provided
below, if any, Note A shall be full recourse to Borrower for the unpaid balance
of the Loan, plus all accrued and unpaid interest thereon, for the following
&#147;Full Recourse Acts&#148;:</font></p>

<p align="left" style="margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-align:left;text-autospace:none;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the filing of
voluntary bankruptcy by the Borrower.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-align:left;text-autospace:none;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>the sale, transfer
conveyance or, the further encumbrance of the Premises, without the consent of
the Lender as required under the Lender Loan Documents, except for a transfer
of assets to a wholly controlled affiliate or wholly owned subsidiary of
Borrower, or to a liquidating trust as described in GTA&#146;s proxy statement dated
April&nbsp;6, 2001.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-align:left;text-autospace:none;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Borrower aiding,
acquiescing or abetting in the filing of an involuntary bankruptcy against
Borrower.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-align:left;text-autospace:none;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(4)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>a transfer, directly
or indirectly, in GTA&#146;s ownership interests of Borrower during the term of the
Loan, without the Lender&#146;s prior consent to the extent required under the Loan
Documents, except that GTA may transfer its ownership interest in Borrower to a
wholly controlled affiliate or wholly owned subsidiary of Borrower, or to a
liquidating trust as described in GTA&#146;s proxy statement dated April&nbsp;6,
2001.</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="left" style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;text-align:left;text-autospace:none;text-indent:-.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(5)</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>criminal activity of
Borrower, or its affiliates.</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Limited Recourse Acts and the Full Recourse Acts are collectively referred to
herein as the &#147;Carve Out Acts&#148;.&#160; The
personal liability of Borrower for Limited Recourse Acts or Full Recourse Acts
as set forth above shall also include reasonable attorneys&#146; fees and costs of
enforcement and collection.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

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<p align="center" style="font-size:10.0pt;margin:0in 0in .0001pt;text-align:center;">&nbsp;</p>

<p align="center" style="layout-grid-mode:char;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">PROMISSORY NOTE B</font></b></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">$1,300,000.00</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">July&nbsp;15, 2004</font></p>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Golf Trust of America, L.P.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14 N. Adger&#146;s Wharf</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Charleston, South Carolina&#160;
29401</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Hereinafter referred to as &#147;Borrower&#148;)</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Elk Funding, L.L.C.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c/o Starwood Capital Group, L.L.C.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">591 West Putnam Avenue</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Greenwich, CT&#160; 06830</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Hereinafter referred to as &#147;Lender&#148;)</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">Borrower promises to pay to the order of
Lender, in lawful money of the United States of America, at its office
indicated above or wherever else Lender may specify, the sum of One Million
Three Hundred Thousand and No/100 Dollars (</font>$1,300,000.00) or such sum as may be advanced and outstanding
from time to time, with interest on the unpaid principal balance at the rate
and on the terms provided in this Promissory Note A (including all renewals,
extensions or modifications hereof, this &#147;Note&#148;).</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">LOAN AGREEMENT.</font></b>&#160; This Note is subject to the provisions of
that certain Loan Agreement between Lender and Borrower of even date herewith,
as modified from time to time.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;layout-grid-mode:char;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SECURITY.</font></b>&nbsp;
Borrower has granted Lender a security interest in the collateral described in
(i) those certain two Mortgage, Assignment of Rents, Security Agreement and
Fixture Filing agreements from Borrower to Lender of even date herewith, and
(ii) that certain Assignment of Defense and Escrow Agreement (the &#147;Assignment&#148;)
from Borrower to Lender of even date herewith.</p>

<p style="layout-grid-mode:char;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">INTEREST RATE.</font></b>&#160; Interest
shall accrue on the unpaid principal balance of this Note from the date hereof
at the prime rate of Bank of America, N.A., or its successor in interest (as
announced by Bank of America, N.A., or its successor in interest, from time to
time) plus 1.0%, as that rate may change from time to time (&#147;Interest
Rate&#148;).&#160; The Interest Rate shall be
compounded monthly but shall be adjusted each month on the first business day
of each month.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">REPAYMENT TERMS.</font></b>&#160; Payments
of interest shall accrue during the term of the Note and all principal and
accrued interest shall be due and payable on September&nbsp;30, 2006 (the
&#147;Maturity Date&#148;); provided, however, payments of principal and accrued interest
shall be due in the form of Release Fees during the term of the Note as
provided in Section&nbsp;26 of each Mortgage; and provided, further that
Borrower shall be entitled to the benefit of the Forgiven Principal Balance
(defined in the following paragraph), subject to the terms provided in the
following paragraph.</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11</font></p>


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<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">PRINCIPAL
DEBT FORGIVENESS.</font></b>&#160; If during the term of this Note there has been
no Default which has not be cured by Borrower or which is expressly waived by
Lender in writing, upon Borrower&#146;s satisfaction of the balance of the Note
(less the amount of the Forgiven Principal Balance set forth herein) on the
Maturity Date (or sooner in the event of a prepayment), Lender agrees to
forgive $121,712.50 of principal of the final payment of the Note (&#147;Forgiven
Principal Balance&#148;), whether the Note is prepaid or paid at maturity.&#160; The Forgiven Principal Balance constitutes
the mortgage tax applicable to be paid on the existing outstanding mortgage
loan balance ($78,975,000.00) of that certain loan from Golf Trust of America,
L.P. to Golf Host Resorts, Inc., an affiliate of the Lender.&#160; This mortgage tax equals $243,425.00 and
each of Borrower and Golf Host Resorts, Inc. agrees to be responsible for
payment of half of this amount, or $121,712.50, as of the date of this Note.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">APPLICATION OF
PAYMENTS.</font></b>&#160; Monies received by Lender from any source
for application toward payment of the Obligations shall be applied to accrued
interest and then to principal.&#160; If any
payment received by Lender under this Note or other Loan Documents is
rescinded, avoided or for any reason returned by Lender because of any adverse
claim or threatened action, the returned payment shall remain payable as an
obligation of all persons liable under this Note or other Loan Documents as
though such payment had not been made.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">DEFINITIONS.&#160; Loan Documents.</font></b>&#160; The term
&#147;Loan Documents&#148;, as used in this Note and the other Loan Documents, refers to
the Loan Agreement, this Note, Note A, the Mortgages and the Assignment.&#160; <b><font style="font-weight:bold;">Obligations.</font></b>&#160; The term &#147;Obligations&#148;, as used in this Note
and with respect thereto in the other Loan Documents, refers to any and all
indebtedness and other obligations under this Note and all other obligations
under any other Loan Document(s) but specifically excludes any obligations with
respect to Promissory Note A.&#160; <b><font style="font-weight:bold;">Certain Other Terms.</font></b>&#160; All terms that are used but not otherwise
defined in any of the Loan Documents shall have the definitions provided in the
Uniform Commercial Code.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">DEFAULT RATE.</font></b>&#160; In
addition to all other rights contained in this Note, if a Default (as defined
herein) occurs and as long as a Default continues, all outstanding Obligations,
other than Obligations under any swap agreements (as defined in 11 U.S.C.
&#167;&nbsp;101) between Borrower and Bank or its affiliates, shall bear interest at the Interest Rate <u>plus</u> 5.0% (&#147;Default
Rate&#148;).&#160; The Default Rate shall also
apply from acceleration until the Obligations or any judgment thereon is paid
in full.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ATTORNEYS&#146; FEES AND
OTHER COLLECTION COSTS.</font></b>&#160; Borrower shall pay all of
Lender&#146;s reasonable expenses incurred to enforce or collect any of the
Obligations including, without limitation, reasonable arbitration, paralegals&#146;,
attorneys&#146; and experts&#146; fees and expenses, whether incurred without the
commencement of a suit, in any trial, arbitration, or administrative
proceeding, or in any appellate or bankruptcy proceeding.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">USURY.</font></b>&#160; If at
any time the effective interest rate under this Note would, but for this
paragraph, exceed the maximum lawful rate, the effective interest rate under
this Note shall be the maximum lawful rate, and any amount received by Lender
in excess of such rate shall be applied</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12</font></p>


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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">to principal and then to fees and expenses,
or, if no such amounts are owing, returned to Borrower.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">DEFAULT.</font></b>&#160; If any
of the following occurs, a default (&#147;Default&#148;) under this Note shall
exist:&#160; <b><font style="font-weight:bold;">Nonpayment; Nonperformance.</font></b>&#160;
The failure of timely payment or performance of the Obligations or
Default under this Note or any other Loan Documents after written notice or a
15 day cure period (90 days in the case of a non-monetary Default).&#160; <b><font style="font-weight:bold;">False
Warranty.</font></b>&#160; A warranty or
representation made or deemed made in the Loan Documents or furnished Lender in
connection with the loan evidenced by this Note proves materially false, or if
of a continuing nature, becomes materially false.&#160; <b><font style="font-weight:bold;">Cessation; Bankruptcy.</font></b>&#160; The death of, appointment of a guardian for,
dissolution of, termination of existence of, loss of good standing status by,
appointment of a receiver for, assignment for the benefit of creditors of, or
commencement of any bankruptcy or insolvency proceeding by or against Borrower,
its Subsidiaries or Affiliates, if any, or any general partner of or the
holder(s) of the majority ownership interests of Borrower, or any party to the
Loan Documents.&#160; <b><font style="font-weight:bold;">Default Under Note A.</font></b>&#160; Any uncured default under Note A.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">REMEDIES UPON DEFAULT.</font></b>&#160; If a Default occurs under this Note or any
Loan Document, Lender may at any time thereafter, take the following
actions:&nbsp; <b><font style="font-weight:bold;">Lender Lien.</font></b>&#160; Foreclose its security interest or lien
against the collateral.&#160; <b><font style="font-weight:bold;">Acceleration Upon Default.</font></b>&#160; Accelerate the maturity of this Note
whereupon this Note and the accelerated Obligations shall be immediately due
and payable; provided, however, if the Default is based upon a bankruptcy or
insolvency proceeding commenced by or against Borrower or any guarantor or
endorser of this Note, all Obligations shall automatically and immediately be
due and payable.&#160; <b><font style="font-weight:bold;">Cumulative.</font></b>&#160; Exercise any rights and remedies as provided under the Note and
other Loan Documents, or as provided by law or equity.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WAIVERS AND
AMENDMENTS.</font></b>&#160; No waivers, amendments or modifications of
this Note and other Loan Documents shall be valid unless in writing and signed
by an officer of Lender.&#160; No waiver by
Lender of any Default  shall operate
as a waiver of any other Default or the same Default on a future occasion.&#160; Neither the failure nor any delay on the
part of Lender in exercising any right, power, or remedy under this Note and
other Loan Documents shall operate as a waiver thereof, nor shall a single or
partial exercise thereof preclude any other or further exercise thereof or the
exercise of any other right, power or remedy.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Except to the extent otherwise provided by the Loan Documents or
prohibited by law, each Borrower and each other person liable under this Note
waives presentment, protest, notice of dishonor, demand for payment, notice
of intention to accelerate maturity, notice of acceleration of maturity, notice
of sale and all other notices of any kind.&#160;
Further, each agrees that Lender may (i) extend, modify or renew this Note or make a novation of the loan evidenced
by this Note, and/or (ii) grant releases, compromises or indulgences
with respect to any collateral securing this Note, or with respect to any
Borrower or other person liable under this Note or any other Loan Documents,
all without notice to or consent of each Borrower and other such person, and
without affecting the liability of each Borrower and other such person;
provided, Lender may not extend, modify or renew this Note or make a novation
of the loan evidenced by this Note without the consent of the Borrower, or if
there is more than one Borrower, without the consent of at least one Borrower;
and further provided, if there is more than one Borrower,</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Lender may not enter into a modification of this Note which increases
the burdens of a Borrower without the consent of that Borrower.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">MISCELLANEOUS
PROVISIONS.&#160; Assignment.</font></b>&#160; This
Note and the other Loan Documents shall inure to the benefit of and be binding
upon the parties and their respective heirs, legal representatives, successors
and assigns.&#160; Neither Borrower nor
Lender shall assign their respective rights and interest hereunder without the
prior written consent of the other, and any attempt by either to assign without
the other&#146;s prior written consent is null and void.&#160; <b><font style="font-weight:bold;">Applicable Law; Conflict
Between Documents.</font></b>&#160; This Note
and, unless otherwise provided in any other Loan Document, the other Loan
Documents shall be governed by and construed  under the laws of the state of Florida without regard to that state&#146;s
conflict of laws principles.&#160; If the
terms of this Note should conflict with the terms of any Loan Documents or the
terms of this Note shall control.&#160; <b><font style="font-weight:bold;">Jurisdiction.</font></b>&#160; Borrower irrevocably agrees to non-exclusive personal
jurisdiction in the state of Florida.&#160; <b><font style="font-weight:bold;">Severability.</font></b>&#160; If any provision of this Note or of the other Loan Documents
shall be prohibited or invalid under applicable law, such provision shall be
ineffective but only to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of
this Note or other such document.&#160; <b><font style="font-weight:bold;">Notices.</font></b>&#160;
Any notices required hereunder shall be sufficiently given, if in
writing and mailed or delivered to the address shown above or such other address
as may be specified in writing from time to time.&#160; In the event that Borrower changes Borrower&#146;s address at any time
prior to the date the Obligations are paid in full, Borrower agrees to promptly
give written notice of said change of address by registered or certified mail,
return receipt requested, all charges prepaid.&#160;
<b><font style="font-weight:bold;">Plural; Captions.</font></b>&#160; All references in the Loan Documents to
Borrower, guarantor, person, document or other nouns of reference mean both the
singular and plural form, as the case may be, and the term &#147;person&#148; shall mean
any individual, person or entity.&#160; The
captions contained in the Loan Documents are inserted for convenience only and
shall not affect the meaning or interpretation of the Loan Documents.&#160; <b><font style="font-weight:bold;">Advances.</font></b>&#160; Lender may, in its sole discretion, make
other advances which shall be deemed to be advances under this Note, even
though the stated principal amount of this Note may be exceeded as a result
thereof.&#160; <b><font style="font-weight:bold;">Fees and Taxes.</font></b>&#160;
Borrower shall promptly pay all documentary, intangible recordation
and/or similar taxes on this transaction whether assessed at closing or arising
from time to time.&#160; <b><font style="font-weight:bold;">LIMITATION ON LIABILITY; WAIVER OF PUNITIVE DAMAGES. </font></b>EACH
OF THE PARTIES HERETO, INCLUDING LENDER BY ACCEPTANCE HEREOF, AGREES THAT IN
ANY JUDICIAL, MEDIATION OR ARBITRATION PROCEEDING OR ANY CLAIM OR CONTROVERSY
BETWEEN OR AMONG THEM THAT MAY ARISE OUT OF OR BE IN ANY WAY CONNECTED WITH
THIS AGREEMENT, THE LOAN DOCUMENTS OR ANY OTHER AGREEMENT OR DOCUMENT BETWEEN
OR AMONG THEM OR THE OBLIGATIONS EVIDENCED HEREBY OR RELATED HERETO, IN NO
EVENT SHALL ANY PARTY HAVE A REMEDY OF, OR BE LIABLE TO THE OTHER FOR, (1)
INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES OR (2) PUNITIVE OR EXEMPLARY
DAMAGES.&#160; EACH OF THE PARTIES HEREBY
EXPRESSLY WAIVES ANY RIGHT OR CLAIM TO PUNITIVE OR EXEMPLARY DAMAGES THEY MAY
HAVE OR WHICH MAY ARISE IN THE FUTURE IN CONNECTION WITH ANY SUCH PROCEEDING,
CLAIM OR CONTROVERSY, WHETHER THE SAME IS RESOLVED BY ARBITRATION, MEDIATION,
JUDICIALLY OR OTHERWISE.</p>

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<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WAIVER OF JURY TRIAL.</font></b>&#160; TO THE
EXTENT PERMITTED BY APPLICABLE LAW, EACH OF<i><font style="font-style:italic;">  </font></i>BORROWER<i><font style="font-style:italic;">  </font></i>BY EXECUTION HEREOF AND LENDER BY
ACCEPTANCE HEREOF, KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT
EACH MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED ON, OR
ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS NOTE, THE LOAN DOCUMENTS OR
ANY AGREEMENT CONTEMPLATED TO BE EXECUTED IN CONNECTION WITH THIS<i><font style="font-style:italic;">  </font></i>NOTE, OR ANY COURSE OF CONDUCT, COURSE OF
DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY WITH
RESPECT HERETO.&#160; THIS PROVISION IS A
MATERIAL INDUCEMENT TO LENDER TO ACCEPT THISNOTE<i><font style="font-style:italic;">.</font></i>&#160; EACH OF THE PARTIES AGREES THAT THE
TERMS HEREOF SHALL SUPERSEDE AND REPLACE ANY PRIOR AGREEMENT RELATED TO
ARBITRATION OF DISPUTES BETWEEN THE PARTIES CONTAINED IN ANY LOAN DOCUMENT OR
ANY OTHER DOCUMENT OR AGREEMENT HERETOFORE EXECUTED IN CONNECTION WITH, RELATED
TO OR BEING REPLACED, SUPPLEMENTED, EXTENDED OR MODIFIED BY, THIS NOTE.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">IN WITNESS WHEREOF</font></b>, Borrower, on the day and year first above
written, has caused this Note to be executed under seal.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">PLACE OF EXECUTION AND DELIVERY.</font></b>&#160; Borrower hereby certifies that this Note and
the Loan Documents were executed in the State of Florida and delivered to
Lender in the State of Florida.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.24%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="66%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:66.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Taxpayer Identification Number:&#160;
  58-22888961</font></p>
  </td>
 </tr>
 <tr>
  <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.24%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="66%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:66.76%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.24%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="66%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:66.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">GOLF TRUST OF AMERICA, L.P.</font></p>
  </td>
 </tr>
 <tr>
  <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.24%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="66%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:66.76%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.24%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="66%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:66.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By: GTA GP, Inc., its general partner</font></p>
  </td>
 </tr>
 <tr>
  <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.24%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="66%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:66.76%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.24%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="66%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:66.76%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.24%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.62%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="18%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:18.38%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/&nbsp;&nbsp;W. Bradley Blair, II</font></p>
  </td>
  <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.76%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.24%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="66%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:66.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:&#160; W. Bradley Blair, II</font></p>
  </td>
 </tr>
 <tr>
  <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.24%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;">&nbsp;</p>
  </td>
  <td width="66%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:66.76%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title: President and CEO</font></p>
  </td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15</font></p>


<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

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