Document:

BUSINESS LOAN AGREEMENT

        THIS BUSINESS LOAN AGREEMENT is made and entered into this 25th day of
April, 2002 by and between Capitol Communities Corporation, a Nevada
corporation, ("Borrower") and Boca First Capital LLLP, a Florida limited
liability limited partnership ("Lender");

                                   WITNESSETH:

        WHEREAS, Borrower has received prior commercial loans from Lender or has
applied to Lender for a commercial loan or loans and other financial
accommodations, including those which may be described on any exhibit or
schedule attached to this Agreement; and

        WHEREAS, all such loans and financial accommodations together with all
future loans and financial accommodations from Lender to Borrower, are referred
to in this Agreement individually as the "Loan" and collectively as the "Loans";
and

        WHEREAS, Borrower understands and agrees that: (a) in granting,
renewing, or extending any Loan, Lender is relying upon Borrower's
representations, warranties, and agreements, as set forth in this Agreement; (b)
the granting, renewing, or extending of any Loan by Lender at all times shall be
subject to Lender's sole judgment and discretion; and (c) all such loans shall
be and shall remain subject to the following terms and conditions of this
Agreement.

        NOW THEREFORE, in consideration of the mutual benefits accruing to the
respective parties under the provisions of this agreement, the parties agree as
follows:

1.      Term. This Agreement shall be effective as of April 25, 2002, and shall
continue thereafter until all Indebtedness of Borrower to Lender has been
performed in full and the parties terminate this Agreement in writing.

2.      Definitions. The following words shall have the following meanings when
used in this Agreement. Terms not otherwise defined in this Agreement shall have
the meanings attributed to such terms in the Uniform Commercial Code. All
referenced to dollar amounts shall mean amounts in lawful money of the United
States of America.

                A.   Agreement. The word "Agreement" means this Business Loan
Agreement, as this Business Loan Agreement may be amended or modified from time
to time, together with all exhibits and schedules attached to this Business Loan
Agreement from time to time.

                B.   Borrower. The work "Borrower" means Capitol Communities
Corporation, a Nevada corporation. The word "Borrower" also includes, as
applicable, all subsidiaries and affiliates of Borrower as provided below in the
paragraph titled "Subsidiaries and Affiliates."

                C.   CERCLA. The word "CERCLA" means the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980, as amended.

                D.   Cash Flow. The words "Cash Flow" mean net income after
taxes, and exclusive of extraordinary gains and income, plus depreciation and
amortization.

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                E.   Collateral. The word "Collateral" means and includes
without limitation all property and assets granted as collateral security for a
Loan, whether real or personal property, whether granted directly or indirectly,
whether granted now or in the future, and whether granted in the form of a
security interest, mortgage, deed of trust, assignment, pledge, chattel
mortgage, chattel trust, factor's lien, equipment trust, conditional sale, trust
receipt, lien, charge, lien or title retention contract, lease or consignment
intended as a security device, or any other security or lien interest
whatsoever, whether created by law, contract, or otherwise.

                F.   Debt. The word "Debt" means all of Borrower's liabilities
excluding Subordinated Debt.

                G.   ERISA. The word "ERISA" means the Employee Retirement
Income Security Act of 1974, as amended.

                H.   Event of Default. The words "Event Of Default" mean and
include without limitation any of the Events of Default set forth below in the
section titled "EVENTS OF DEFAULT."

                I.   Grantor. The word "Grantor" means and includes without
limitation each and all of the persons or entities granting a Security Interest
in any Collateral for the Indebtedness, including without limitation all
Borrowers granting such a Security Interest.

                J.   Guarantor. The work "Guarantor" means and includes without
limitation each and all of the guarantors, sureties, and accommodation parties
in connection with any Indebtedness.

                K.   Indebtedness. The word "Indebtedness" means in includes
without limitation all Loans, together with all other obligations, debts and
liabilities of Borrower to Lender, or any one or more of them, as well as all
claims by Lender against Borrower, or any one or more of them; whether now or
hereafter existing, voluntary or involuntary, due or not due, absolute or
contingent, liquidated or unliquidated; whether Borrower may be liable
individually or jointly with others; whether Borrower may be obligated as a
guarantor, surety, or otherwise; whether recovery upon such Indebtedness may be
or hereafter may become barred by any statute of limitations; and whether such
Indebtedness maybe or hereafter may become otherwise unenforceable.

                L.   Lender. The word "Lender" means Boca First Capital LLLP, a
Florida limited liability limited partnership, its successors and assigns.

                M.   Liquid Assets. The words "Liquid Assets" mean Borrower's
cash on hand plus Borrower's readily marketable securities.

                N.   Loan. The word "Loan" or "Loans" means and includes without
limitation any and all commercial loans and financial accommodations from Lender
to Borrower, whether now or hereafter existing, and however evidenced, including
without limitation those loans and financial accommodations described herein or
described on any exhibit or schedule attached to this Agreement form time to
time.

                O.   Note. The word "Note" means and includes without limitation
Borrower's promissory note or notes, if any, evidencing Borrower's Loan
obligations in favor of Lender, as well as any substitute, replacement or
refinancing note or notes therefor.

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                P.   Permitted Liens. The word "Permitted Liens: mean:
(a) liens and security interests securing Indebtedness owed by Borrower to
Lender; (b) liens for taxes, assessments, or similar charges either not yet due
or being contested in good faith; (c) liens of materialmen, mechanics,
warehousemen, or carriers, or other like liens arising in the ordinary course of
business and securing obligations which are not yet delinquent; (d) purchase
money liens or purchase money security interests upon or in any property
acquired or held by Borrower in the ordinary course of business to secure
indebtedness outstanding on the date of this Agreement or permitted to be
incurred under the paragraph on this Agreement titled "Indebtedness and Liens";
(e) liens and security interests which, as of the date of this Agreement, have
been disclosed to and approved by the Lender in writing; (f) those liens and
security interests which in the aggregate constitute an immaterial and
insignificant monetary amount with respect to the net value of Borrower's
assets; and (g) those other liens and security interests which are included and
disclosed in the Federal Securities Exchange Commission filings of Borrower
and/or disclosed in the "Stock Exchange Agreement" hereinafter defined.

                Q.   Related Documents. The words "Related Documents" mean and
include without limitation all promissory notes, loan commitments, credit
agreements, loan agreements, environmental agreements, guaranties, security
agreements, mortgages, deeds of trust, and all other instruments, agreements and
documents, whether now or hereafter existing, executed in connection with the
Indebtedness.

                R.   Security Agreement. The words "Security Agreement" mean and
include without limitation, any agreements, promises, covenants, arrangements,
understandings or other agreements, whether created by law, contract, or
otherwise, evidencing, governing, representing, or creating a Security Interest.

                S.   Security Interest. The words "Security Interest" mean and
include without limitation any type of collateral security, whether in the form
of a lien, charge, mortgage, deed of trust, assignment, pledge, chattel
mortgage, chattel trust, factor's lien, equipment trust, conditional sale, trust
receipt, lien or title retention contract, collateral assignment, lease or
consignment intended as a security device, or any other security or lien
interest whatsoever, whether created by law, contract, or otherwise.

                T.   SARA. The word "SARA" means the Superfund Amendments and
Reauthorization Act of 1986 as now or hereafter amended.

                U.   Subordinated Debt. The words "Subordinated Debt" mean
indebtedness and liabilities of Borrower which have been subordinated by written
agreement to indebtedness owed by Borrower to Lender in form and substance
acceptable to Lender.

                V.   Stock Exchange Agreement. That certain Stock Exchange
Agreement of even date herewith entered into by and between Michael G. Todd,
Prescott Investment, L.P., Ken Richardson, and Howard Bloom.

                W.   Tangible Net Worth. The words "Tangible Net Worth" mean
Borrower's total assets excluding all intangible assets (i.e., goodwill,
trademarks, patents, copyrights, organizational expenses, and similar intangible
items, but including leaseholds and leasehold improvements) less total Debt.

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                X.   Working Capital. The words "Working Capital" mean
Borrower's current assets, excluding prepaid expenses, less Borrower's current
liabilities.

3.      Conditions Precedent To Each Advance. Lender's obligation to make the
initial Loan Advance and each subsequent Loan Advance under this Agreement shall
be subject to the fulfillment to Lender's satisfaction of all of the conditions
set forth in this Agreement and in the Related Documents.

                A.   Loan Documents. Borrower shall provide to Lender in form
satisfactory to Lender the following documents for the Loan: (a) the Note; (b)
Security Agreements granting to Lender security interests in the Collateral, (
c) Financing Statements perfecting Lender's Security Interests; (d) evidence of
insurance as required below; and (e) any other documents required under this
Agreement or by Lender or its counsel.

                B.   Borrower's Authorization. Borrower shall have provided in
form and substance satisfactory to Lender properly certified resolutions, duly
authorizing the execution and delivery of this Agreement, the Note and the
Related Documents, and such other authorizations and other documents and
instruments as Lender or its counsel, in their sole discretion, may require.

                C.   Payment of Fees and Expenses. Borrower shall have paid to
Lender all fees, charges, and other expenses which are then due an payable as
specified in this Agreement or any Related Document.

                D.   Representations and Warranties. The representations and
warranties set forth in this Agreement, in the Related Documents, and in any
document or certificate delivered to Lender under this Agreement are true and
correct.

                E.   No Event of Default. There shall not exist at the time of
any advance a condition which would constitute an Event of Default under this
Agreement.

4.      Representations And Warranties. Borrower represents and warrants to
Lender, as of the date of this Agreement, as of the date of each disbursement of
Loan proceeds, as of the date of any renewal, extension or modification of any
Loan, and at all times any Indebtedness exists:

                A.   Organization. Borrower is a corporation which is duly
organized, validly existing, and in good standing under the laws of the state of
Borrower's creation and is validly existing and in good standing in all states
in which Borrower is doing business. Borrower has the full power and authority
to own it properties and to transact the businesses in which it is presently
engaged or presently proposes to engage. Borrower also is duly qualified as a
foreign corporation and is in good standing in all states in which the failure
to so qualify would have a material adverse effect on its business or financial
condition.

                B.   Authorization. The execution, delivery, and performance of
this Agreement and all Related Documents by Borrower, to the extent to be
executed delivered or performed by Borrower, have been duly authorized by all
necessary action

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by Borrower; do not require the consent or approval of any other person,
regulatory authority or governmental body; and do not conflict with, result in a
violation of, or constitute a default under (a) any provision of its articles of
Incorporation or organization, or bylaws, or any agreement or other instrument
binding upon Borrower or (b) any law, governmental regulation, court decree, or
order applicable to Borrower.

                C.   Financial Information. Each financial statement of Borrower
(or any of Borrower's affiliates) supplied to Lender truly and completely
disclosed Borrower's financial condition as of the date of the statement, and
there has been no material adverse change in Borrower's (or any of Borrower's
affiliates) financial condition subsequent to the date of the most recent
financial statement supplied to Lender. Borrower (or any of Borrower's
affiliates) has no material contingent except as disclosed in such financial
statements.

                D.   Legal Effect. The Agreement constitutes, and any instrument
or agreement required hereunder to be given by Borrower when delivered will
constitute, legal, valid and binding obligations of Borrower enforceable against
Borrower in accordance with their respective terms.

                E.   Properties. Except as contemplated by this Agreement or as
previously disclosed in Borrower's financial statements or in writing to Lender
and as accepted by Lender, and except for property tax liens for taxes not
presently due and payable, Borrower owns and has good title to all of Borrower's
properties free and clear of all Security Interests, and has not executed any
security documents or financing statement relating to such properties. All of
Borrower's properties are titled in Borrower's legal name, and Borrower has not
used, or filed a financing statement under, any other name for at least the last
five (5) years.

                F.   Hazardous Substances. The terms "hazardous waste,"
"hazardous substance," "disposal," "release," and "threatened release," as used
in this Agreement shall have the same meanings as set forth in the "CERCLA",
"SARA," the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et.
esq., the Rescue Conservation and recovery Act, 42 U.S.C. Section 6901, et seq.,
or other applicable state or Federal laws, rules, or regulations adopted
pursuant to any of the foregoing. Except as disclosed to and acknowledged by
Lender in writing, Borrower represents and warrants that: (a) During the period
of Borrower's ownership of the properties, there has been no use, generation,
manufacture, storage, treatment, disposal, release or threatened release of any
hazardous waste or substance by any person on, under, about or from any of the
properties. (b) Borrower has no knowledge of, or reason to believe that there
has been (i) any use, generation, manufacture, storage, treatment, disposal,
release, or threatened release of any hazardous waste or substance on, under,
about or from the properties by any prior owners or occupants of any of the
properties, or (ii) any actual or threatened litigation or claims of any kind by
any person relating to such matters. (c) Neither Borrower nor any tenant,
contractor, agent or other authorized user of any of the properties shall use,
generate, manufacture, store, treat, dispose of, or release any hazardous waste
or substance on, under, about from the properties by any prior owners or
occupants of any of the properties, or (ii) any actual or threatened litigation
or claims of any kind by any person relating to such matters. (c) Neither
Borrower nor any tenant, contractor, agent or other authorized user of any of
the properties shall use, generate manufacture, store, treat, dispose of, or
release any hazardous waste or substance on, under, about or from any of the
properties; and any such activity shall be conducted in compliance with all
applicable federal, state, and local laws, regulations, and ordinances,
including without limitation those laws, regulations, and ordinances

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described above. Borrower authorizes Lender and its agents to enter upon the
properties to make such inspection and tests as Lender may deem appropriate to
determine compliance of the properties with this section of the Agreement. Any
inspections or tests made by Lender shall be at Borrower's expense and for
Lender's purposes only and shall not be construed to create any responsibility
or liability on the part of the Lender to Borrower or to any other person. The
representations and warranties contained herein are based upon Borrower's due
diligence in investigating the properties for hazardous waste and hazardous
substances. Borrower hereby (a) releases and wives any future claims against
Lender for indemnity or contribution in the event Borrower becomes liable for
cleanup or other costs under any such laws, and (b) agrees to indemnify and hold
harmless Lender against any and all claims, losses, liabilities, damages,
penalties, and expenses which Lender may directly or indirectly sustain or
suffer resulting from a breach of this section of the Agreement or as a
consequence of any use, generation, manufacture, storage, disposal, release or
threatened release occurring prior to Borrower's ownership or interest in the
properties, whether or not the same was or should have been known to Borrower.
The provisions of this section of the Agreement, including the obligation to
indemnify, shall survive the payment of the Indebtedness and the termination or
expiration of this Agreement and shall not be affected by Lender's acquisition
of any interest in any of the properties, whether by foreclosure or otherwise.

                G.   Litigation and Claims. No litigation, claim, investigation,
administrative proceeding or similar action (including those for unpaid taxes)
against Borrower is pending or threatened, and no other event has occurred which
may materially adversely affect Borrower's financial condition or properties,
other than litigation, claims, or other events, if any, that have been disclosed
to and acknowledged by Lender in writing and other than litigation, claims, or
other events, if any, that have been disclosed in the Federal Securities
Exchange Commission filings of Borrower and/or disclosed in the Stock Exchange
Agreement.

                H.   Taxes. To the best of Borrower's knowledge, all tax returns
and reports of Borrower that are or were required to be filed, have been filed,
and all taxes, assessments and other governmental charges have been paid in
full, except those presently being or to be contested by Borrower in good faith
in the ordinary course of business and for which adequate reserves have been
provided.

                I.   Lien Priority. Unless otherwise previously disclosed to
Lender in writing, Borrower (or any of Borrower's affiliates) has not entered
into or granted any Security Agreements, or permitted the filing or attachment
of any Security Interests on or affecting any of the Collateral directly or
indirectly securing repayment of Borrower's Loan and Note, that would be prior
or that may in any way be superior to Lender's Security Interests and rights in
and to such collateral.

                J.   Binding Effect. This Agreement, the Note, all Security
Agreements directly or indirectly securing repayment of Borrower's Loan and
Note, and all of the Related Documents are binding upon Borrower as well as upon
Borrower's successors, representatives and assigns, and are legally enforceable
in accordance with their respective terms.

                K.   Commercial Purposes. Borrower intends to use the Loan
proceeds solely for business or commercial related purposes.

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                L.   Employee Benefit Plans. Each employee benefit plan as to
which Borrower may have any liability complies in all material respects with all
applicable requirements of law and regulations, and (i) no Reportable Event nor
Prohibited Transaction (as defined in ERISA) has occurred with respect to any
such plan, (ii) Borrower has not withdrawn from any such plan or initiated steps
to do so, (iii) no steps have been taken to terminate any such plan, and (iv)
there are no unfunded liabilities other than those previously disclosed to
Lender in writing.

                M.   Location of Borrower's Offices and Records. Borrower's
place of business, or Borrower's Chief executive office, if Borrower has more
than one place of business, is located at 25550 Hawthorne Blvd., Suite 207,
Torrance, CA 90505. Unless Borrower has designated otherwise in writing this
location is also the office or offices where Borrower keeps its records
concerning the Collateral.

                N.   Information. All information heretofore or
contemporaneously herewith furnished by Borrower to Lender for the purposes of
or in connection with this Agreement or any transaction contemplated hereby is,
and all information hereafter furnished by or on behalf of Borrower to Lender
will be, true and accurate in every material respect on the date as of which
such information is dated or certified; and none of such information is or will
be incomplete by omitting to state any material fact necessary to make such
information not misleading.

                O.   Survival of Representations and Warranties. Borrower
understands and agrees that Lender, without independent investigation, is
relying upon the above representations and warranties in making the above
referenced Loan to Borrower. Borrower further agrees that the foregoing
representations and warranties 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, or until this Agreement shall be terminated in the manner provided
above, whichever is the last to occur.

5.      Affirmative Covenants. Borrower covenants and agrees with Lender that,
while this Agreement is in effect, Borrower will:

                A.   Litigation. Promptly inform Lender in writing of (a) all
material adverse changes in Borrower's financial condition, and (b) all existing
and threatened litigation, claims, investigations, administrative proceedings or
similar actions affecting Borrower or any Guarantor which could materially
affect the financial condition of Borrower or the financial condition of any
Guarantor.

                B.   Financial Records. Maintain its books and records in
accordance with generally accepted accounting principles; applied on a
consistent basis, and permit Lender to examine and audit Borrower's books and
records at all reasonable times. At the option of Lender, Borrower shall provide
Lender with periodic certified audited statements of the operations of and the
financial condition of Borrower.

                C.   Financial Statements. Furnish Lender with, as soon as
available, but in no event later than ninety (90) days after the end of each
fiscal year, Borrower's balance sheet and income statement for the year ended,
reviewed by a certified public accountant satisfactory to Lender, and, as soon
as available, but in no event later than ninety (90) days after the end of each
fiscal quarter, Borrower's balance sheet and profit and loss statement for the
period ended, prepared and certified as correct to the best knowledge and belief
by Borrower's chief financial officer of other officer or person acceptable to
Lender. Furnish Lender with, as soon as available, but in no event later

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than thirty (30) days subsequent to the filing date thereof (including
extensions), annual Federal partnership tax returns. All financial reports
required to be provided under this Agreement shall be prepared in accordance
with generally accepted accounting principles, applied on a consistent basis,
and certified by Borrower as being true and correct.

                D.   Additional Information. Furnish such additional information
and statements, lists of assets and liabilities, agings of receivables and
payables, inventory schedules, budgets, forecasts, tax returns, and other
reports with respect to Borrower's financial condition and business operations
as Lender may request from time to time.

6.      Financial Covenants. Comply with the following covenants:

        A.      Insurance. Maintain fire and other risk insurance, public
liability insurance, and such other insurance as Lender may require with respect
to Borrower's properties and operations, in form, amounts, coverages and with
insurance companies reasonably acceptable to Lender as disclosed in the Federal
Securities Exchange Commission filings of Borrower. Borrower, 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 canceled or diminished without at least thirty (30) days prior
written notice to Lender. Each insurance policy also shall include and
endorsement providing that coverage in favor of Lender will not be impaired in
any way by any act, omission or default of Borrower or any other person. In
connection with all policies covering assets in which Lender holds or is offered
a security interest for the Loans, Borrower will provide Lender with such loss
payable or other endorsements as Lender may require.

                B.   Insurance Reports. Furnish to Lender, upon request of
Lender, reports on each existing insurance policy showing such information as
Lender may reasonably request, including without limitation the following: (a)
the name of the insurer; (b) the risks insured; (c) the amount of the policy;
(d) the properties insured; (e) the then current property values on the basis of
which insurance has be obtained, and the manner of determining those values; and
(f) the expiration date of the policy. In addition, upon request of Lender
(however not more often than annually), Borrower will have an independent
appraiser satisfactory to Lender determine, as applicable, the actual cash value
or replacement cost of any Collateral. The coat of such appraisal shall be paid
by Borrower.

                C.   Other Agreements. Comply with all terms and conditions of
all other agreements, whether now or hereafter existing, between Borrower and
any other party and notify Lender immediately in writing of any default in
connection with any other such agreements.

                D.   Loan Proceeds. Use all of the loan proceeds from the Loan
described in Exhibit "A" attached hereto and by reference made a part hereof
solely for the purposes expressed and set forth in said Exhibit "A".

                E.   Taxes, Charges and Liens. Pay and discharge when due all of
its indebtedness and obligations, including without limitation all assessments,
taxes, governmental charges, levies and liens, of every kind and nature, imposed
upon Borrower or it properties, income, or profits, prior to the date on which
penalties would attach, and all lawful claims that, if unpaid, might became a
lien or charge upon any of Borrower's properties, income, or profits. Provided
however, Borrower will not be

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required to pay and discharge any such assessment, tax, charge, levy, lien or
claim so long as (a) the Legality of the same shall be contested in good faith
by appropriate proceedings, and (b) Borrower shall have established on its books
adequate reserves with respect to such contested assessment, tax, charge, levy,
lien, or claim in accordance with generally accepted accounting practices.
Borrower, upon demand of Lender, will furnish to Lender evidence of payment of
the assessments, taxes, charges, levies, liens and claims and will authorize the
appropriate government official to deliver to Lender at any time a written
statement of any assessments, taxes, charges, levies, liens and claims against
Borrower's properties, income, or profits.

                F.   Performance. Perform and comply with all terms, conditions,
and provisions set forth in this Agreement and in the Related Documents in a
timely manner, and promptly notify Lender if Borrower learns of the occurrence
of any event which constitutes an Event of Default under this Agreement or under
any of the Related Documents.

                G.   Operations. Maintain executive and management personnel
with substantially the same qualifications and experience as the present
executive and management personnel; provide written notice to Lender of any
change in executive and management personnel; conduct its business affairs in a
reasonable and prudent manner and in compliance with all applicable federal,
state and municipal laws, ordinances, rules and regulations respecting its
properties, chargers, businesses and operations, including without limitations,
compliance with the American With Disabilities Act and with all minimum funding
standards and other requirements of ER1SA and other laws applicable to
Borrower's employee benefit plans.

                H.   Inspection. Permit employees or agents of Lender at any
reasonable time to inspect any and all Collateral for the loan or Loans and
Borrower's other properties and to examine or audit Borrower's books, accounts,
and records and to make copies and memoranda of Borrower's books, accounts, and
records. If Borrower now or at any time hereafter maintains any records
(including without limitation computer generated records and computer software
programs for the generation of such records) in the possession of a third party,
Borrower, upon request of Lender, shall notify such party to permit Lender free
access to such records at all reasonable times and to provide Lender with copies
of any records it may request, all at Borrower's expense.

                I.   Compliance Certificate. Unless waived in writing by Lender,
provide Lender at least annually and at the time of each disbursement of Loan
proceeds with a certificate executed by Borrower's chief financial officer, or
other officer or person acceptable to Lender, certifying that the
representations and warranties set forth in this Agreement are true and correct
as of the date of the certificate and further certifying that, as of the date of
the certificate, no Event of Default exists under this Agreement,

                J.   Environmental Compliance and Reports. Borrower shall comply
in all respects with all environmental protection federal, state and local laws,
statutes, regulations and ordinances; not cause or permit to exist, as a result
of an intentional or unintentional action or omission on its part on or the part
of any third party, on property owned and/or occupied by Borrower, any
environmental activity where damage may result to the environment, unless such
environmental activity is pursuant to and in compliance with the conditions of a
permit issued by the appropriate federal, state or local governmental
authorities; shall furnish to Lender promptly and in any event within thirty
(30) days after receipt thereof a copy of any notice, summons, lien,

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<PAGE>

citation, directive, letter or other communication from any governmental agency
or instrumentality concerning any intentional or unintentional action or
omission on Borrower's part in connection with any environmental activity
whether or not there is damage to the environment and/or other natural
resources.

                K.   Additional Assurances. Make, execute and deliver to Lender
such promissory notes, mortgages, deeds of trust, security agreements, financing
statements, instruments, documents and other agreements as Lender or its
attorneys may reasonably request to evidence and secure the Loans and to perfect
all Security Interests.

7.      Negative Covenants. Borrower covenants and agrees with Lender that while
this Agreement is in effect, Borrower shall not, without the prior written
consent of Lender:

                i.   Indebtedness and Liens. (a) Except for trade debt incurred
in the normal course of business and indebtedness for borrowed money, including
capital leases, (b) except as allowed as a Permitted Lien, se!l, transfer,
mortgage, assign, pledge, lease, grant a security interest in, or encumber any
of Borrower's assets, or (c) sell with recourse any of Borrower's accounts,
except to Lender.

                ii.  Continuity of Operations. Except as contemplated by the
Stock Exchange Agreement or as otherwise consented to in writing by Lender
(a) Engage in any business activities substantially different than those in
which Borrower is presently engaged, (b) cease operations, liquidate, merge,
transfer, acquire, or consolidate with any other entity, change ownership,
change its name, dissolve or transfer or sell Collateral out of the ordinary
course of business, (c) pay any dividends on Borrower's stock (other than
dividends payable in its stock), provided, however that notwithstanding the
foregoing, but only so long as no Event of Default has occurred and is
continuing or would result from the payment of dividends, if Borrower is a
"Subchapter S Corporation" (as defined in the Internal Revenue Code of 1986, as
amended), Borrower may pay cash dividends on its stock to its shareholders from
time to time in amounts necessary to enable the shareholder to pay income taxes
and make estimated income tax payments to satisfy their liabilities under
federal and state law which arise solely from their status as Shareholders of a
Subchapter S Corporation because of their ownership of shares of stock of
Borrower, or (d) purchase or retire any of Borrower's outstanding shares or
alter or amend Borrower's capital structure.

                iii. Loans, Acquisitions and Guarantees. (a) Loan, invest in or
advance money or assets, (b) purchase, create or acquire any interest in any
other enterprise or entity, or (c) incur any obligation as surely or guarantor
other than in the ordinary course of business.

8.      Cessation Of Advances. If Lender has made any commitment to make any
Loan to Borrower, whether under this Agreement or under any other agreement,
Lender shall have no obligation to make Loan Advances or to disburse Loan
proceeds if: (a) Borrower or any Guarantor is in default under the terms of this
Agreement or any of the Related Documents or any other agreement that Borrower
or any Guarantor has with Lender; (b) Borrower or any Guarantor become
insolvent, files a petition in bankruptcy or similar proceedings, or is adjudged
a bankrupt; (c) there occurs a material adverse change in Borrower's financial
conditions, in the financial condition of any Guarantor, or in the value of any
Collateral securing any Loan; or (d) any Guarantor seeks, claims or otherwise
attempts to limit, modify or revoke such Guarantor's guaranty of the loan or any
other loan with Lender.

                                       10
<PAGE>

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

                i.   Default on Indebtedness. Failure of Borrower to make any
payment when due on the Loans.

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

                iii. Default in Favor of Third Parties. Should Borrower or any
Grantor default under any loan, extension of credit, security agreement,
purchase or sales agreement, or any other agreement, in favor of any other
creditor or person that may materially affect any of Borrower's property or
Borrower's or any Grantor's ability to repay the Loans or perform their
respective obligations under this Agreement or any of the Related Documents), or
if any third party commences an action against Borrower or against any
subsidiary of Borrower which action may, in the sole discretion of Lender, have
the ultimate effect of jeopardizing the collateral for the Loan or the assets of
the subsidiary, or the prospect of repayment of the Loan therefrom.

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

                v.   Defective Collateralization. This Agreement or any of the
Related Documents ceases to be in full force and effect (including failure of
any Security Agreement to create a valid and perfected Security Interest) at
any time and for any reason.

                vi.  Insolvency. The dissolution or termination of Borrower's
existence as a going business, 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.

                vii. Creditor of Forfeiture Proceedings. Commencement of
foreclosure or forfeiture proceedings, whether by judicial proceeding,
self-help, repossession or any other method, by any creditor of Borrower, any
creditor of any Grantor against any collateral securing the Indebtedness, or by
any governmental agency. This includes a garnishment, attachment, or levy on or
of any of Borrower's deposit accounts with Lender.

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

                                       11
<PAGE>

                ix.  Change in Ownership. Except as provided I the Stock
Exchange Agreement, any change in ownership of twenty-five percent (25%) or more
of the corporate interests of Borrower.

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

10.     Effect Of An Event Of Default. If any Event of Default shall occur,
except where otherwise provided in this Agreement or the Related Documents, all
commitments and obligations of Lender under this Agreement or the Related
Documents or any other agreement immediately will terminate and, at Lender's
option, all Indebtedness immediately will become due and payable, all without
notice of any kind to Borrower, except that in the case of an Event of Default
of the type described in the "Insolvency" subsection above, such acceleration
shall be automatic and not optional. In any addition, Lender shall have all the
rights and remedies provided in the Related Documents or available at law, in
equity, or otherwise. Except as may be prohibited by applicable law, all of
Lender's rights and remedies 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 Borrower or of any Grantor shall not affect
Lender's right to declare a default and to exercise its rights and remedies.

11.     Miscellaneous Provisions. The following miscellaneous provisions are
part of this Agreement:

                i.   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 changed or bound by the alteration or amendment.

                ii.  Applicable Law. This Agreement has been delivered to Lender
and accepted by Lender in the State of Florida. If thers is a lawsuit, Borrower
agrees upon Lender's request to submit to the jurisdiction of the courts of Palm
Beach County County, the State of Florida. This Agreement shall be governed by
and construed in accordance with the laws of the State of Florida.

                iii. 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.

                iv.  Consent to Loan Participation. Borrower agrees and consents
to Lender's sale or transfer, whether now or later, of one or more
participation interests in the Loans to one or more purchasers, whether related
or unrelated to Lender, Lender may provide, without any limitation whatsoever,
to any one or more purchasers, or potential purchasers, any information or
knowledge Lender may have about Borrower or about any other matter relating to
the Loan, and Borrower hereby waives any rights to privacy it may have with
respect to such matters. Borrower additionally waives any and all notices of
sale of participation interest, as well as all notices of any repurchase of such
participation interests. Borrower also agrees that the purchasers of any such
participation interest will be considered as the absolute owners of such
interest in the

                                       12
<PAGE>

Loans and will have all the rights granted under the participation agreement or
agreements governing the sale of such participation interest. Borrower further
waives all rights of offset or counterclaim that it may have now or later
against Lender or against any purchaser of such a participation interest and
unconditionally agrees that either Lender or such purchaser may enforce
Borrower's obligation under the Loans irrespective of the failure or insolvency
of any holder of any interest in the Loans. Borrower further agrees that the
purchaser of any such participation interest may enforce its interests
irrespective of any personal claims or defenses that Borrower may have against
Lender.

                v.   Costs and Expenses. Borrower agrees to pay upon demand all
of Lender's expenses incurred in connection with the preparation, execution,
enforcement, modification and collection of this Agreement or in connection with
the Loans made pursuant to this Agreement. Lender may pay someone else to help
collect the Loans and to enforce this Agreement, and Borrower will pay that
amount. This includes, subject to any limits under applicable law, Lender's
legal expenses, whether or not there is a lawsuit, including expenses for
bankruptcy proceedings (including efforts to modify or vacate any automatic stay
or injunction), appeals, and any anticipated post-judgment collection services.
Borrower also will pay any court costs, in addition to all other sums provided
by law.

                vi.  Notices. All notices required to be given under this
Agreement shall be given in writing, may be sent by telefacsimile (unless
otherwise required by law), and shall be effective when actually delivered or
when deposited With a nationally recognized overnight courier or deposited in
the United States mail, first class, postage prepaid, addressed to the party to
whom the notice is to be given at the address shown above. Any party may change
its address for notices under this Agreement by giving formal written notice to
the other parties, specifying that the purpose of the notice is to change the
party's address. To the extend permitted by applicable law, if there is more
than one Borrower, notice to any Borrower will constitute notice to all
Borrowers. For notice purposes, Borrower will keep Lender informed at all times
of Borrower's current address(es).

                vii. Severability. If a court of competent jurisdiction finds
any provision of this Agreement to be invalid or unenforceable as to any person
or circumstance, such finding shall not render that provision invalid or
unenforceable as to any other persons or circumstances. If feasible, any such
offending provision shall be deemed to be modified to be within the limits of
enforceability or validity; however, if the offending provision cannot be so
modified, it shall be stricken and all other provisions of this Agreement in all
other respects shall remain valid and enforceable.

                viii. Subsidiaries and Affiliates of Borrower. To the extend the
context of any provisions of this Agreement makes it appropriate, including
without limitation any representation, warranty or covenant, the word "Borrower"
as used herein shall include all subsidiaries and affiliates of Borrower.
Notwithstanding the forgoing however, under no circumstances shall this
Agreement be construed to require Lender to make any Loan or other financial
accommodation to any subsidiary or affiliate or Borrower.

                ix.  Successors and Assigns. All covenants and agreements
contained by or on behalf of Borrower shall bind its successors and assigns and
shall inure to the benefit of Lender, its successors and assigns. Borrower shall
not, however, have the right to assign its rights under this Agreement or any
interest therein, without the prior written consent of Lender.

                                       13
<PAGE>

                x.   Survival. All warranties, representations, and covenants
made by Borrower in this Agreement or in any certificate or other instrument
delivered by Borrower to Lender under this Agreement shall be considered to have
been relied upon by Lender and will survive the making of the Loan and delivery
to Lender of the Related Documents, regardless of any investigation made by
Lender or on Lender's behalf.

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

                xii. Waiver. 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 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 Borrower, or between Lender
and any Grantor, shall constitute a waiver of any of Lender's rights or of any
obligations of Borrower or of any Grantor 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 in subsequent instances where such consent is required, and in all cases
such consent maybe granted or withheld in the sole discretion of Lender.

BORROWER ACKNOWELEDGES HAVING READ ALL THE PROVISION OF THIS BUSINESS LOAN
AGREEMENT, AND BORROWER AGREES TO ITS TERMS.

IN WITNESS WHEREOF, Borrower and Lender have executed this Business Loan
Agreement the day and year hereinabove set forth.

Signed, sealed and delivered
in the presence of:

                                 BORROWER:
                                 CAPITOL COMMUNITIES CORPORATION,
                                 a Nevada corporation

/s/ [ILLEGIBLE]                  By: /s/ MICHAEL G. TODD
---------------------            ----------------------------------
                                 Michael G. Todd, President

                                 LENDER:
                                 BOCA FIRST CAPITAL LLLP,
                                 a Florida limited liability limited partnership
                                 By: Addison Capital Group, LLC,
                                     general partner

/s/ [ILLEGIBLE]                      By: /s/ HOWARD BLOOM
---------------------                    --------------------------
                                     Howard Bloom, Manager

                                       14
<PAGE>

                                   EXHIBIT "A"

        This Exhibit "A" constitutes an addendum to that certain Business Loan
Agreement entered into the 25th day of April, 2002 by and between Capitol
Communities Corporation, a Nevada corporation, and Boca First Capital, LLLP, a
Florida limited liability partnership. To the extent of any conflicts between
the terms and provisions of this Exhibit "A" and the terms and provisions of the
said Business Loan Agreement, the terms of this Exhibit "A" shall take
precedence.

That certain revolving line of credit Loan ("Line of Credit Loan") made by
Lender to Borrower in the original principal amount of THREE MILLION THOUSAND
and no/l00ths DOLLARS ($3,000,000.00), which Loan is represented by a Note dated
the 25th day of April, 2002 made by Borrower in favor of Lender in the principal
amount of THREE MILLION THOUSAND and no/100ths DOLLARS ($3,000,000.00), which
Line of Credit Loan is further subject to the following provisions:

1. Security: The Note representing the Line of Credit Loan shall be secured by a
collateral assignment and pledge ("Stock Pledge") of all of the issued and
outstanding capital stock of Borrower's subsidiary, Capitol Development of
Arkansas, Inc., an Arkansas corporation ("CDA"), the form and content of which
Stock Pledge shall be acceptable to Lender. In consideration for the issuance of
the Line of Credit Loan by Lender to Borrower and as a material inducement for
Lender to grant said Line Of Credit Loan to Borrower, Borrower's principal
stockholders, Michael G. Todd and Prescott Investment, L.P., a Nevada limited
partnership, and Borrower's director, Michael G. Todd, by their joinder in this
Agreement, agree that (a) they shall use their shares Borrower, and
Michael G. Todd, his directorship in Borrower to vote against and to prohibit
the imposing of any mortgages, liens or other encumbrances on the real property
and/or other assets of CDA until the Line of Credit Loan is paid in full and
closed; and (b) they shall use their shares Borrower, and Michael G. Todd, his
directorship in Borrower to vote against and to prohibit any further issuance of
stock, common or preferred, by CDA until the Line of Credit Loan is paid in full
and closed. If and at such time as CDA emerges from its current Chapter 11
bankruptcy case, Borrower or Lender may substitute as collateral for the Note,
in lieu of pledged shares of CDA, a mortgage or mortgages and security
agreement upon all of the real property of CDA, subject, however to the written
consent of the Lender, which written consent may be based upon various factors,
including, but not limited to the value of the real property sought to be
substituted, the lien position of the proposed mortgage(s), the creditworthiness
of CDA and of Borrower, provided, however that such consent will not be
unreasonably withheld.

2. Use of Funds; Initial Advances; Limitation on Subsequent Advances:

A. Use of Funds: The funds drawn by Borrower upon the Line of Credit Loan shall
be used by Borrower exclusively for the following purposes; (a) those expenses
described in the 90 day budget projection which is Schedule H attached to that
certain Stock Exchange Agreement of even date herewith entered into by and
between Michael G. Todd, Prescott Investment, L.P., Howard Bloom and
Ken Richardson; (b) payments to promissory note holders of Borrower if, and only
if, Borrower is able to negotiate with such promissory note holders the
retirement of their notes on terms materially the same as those described in
Schedule F of the said Stock Exchange Agreement; (c) interest upon the Line of
Credit Loan, as it falls due; (d) acquisition costs and development costs of
Borrower, provided that the expenditures for such costs and the borrowing from
the Line of Credit Loan for such purposes are approved by the board of directors
of

                                       15
<PAGE>

Borrower; and (e) operating expenses of Borrower, provided that the expenditures
for such costs and the borrowing from the Line of Credit Loan for such purposes
are approved by the board of directors of Borrower. Advances Upon the Line of
Credit Loan, other than those for the purposes described in (a) above shall be
subject to the approval of Lender, based on additional budget projections
submitted in writing by Borrower from time to time.

B. Initial Advance: Contemporaneously with the execution of this Agreement,
Lender shall advance Three-Hundred Thousand and no/l00ths Dollars ($300,000.00)
upon the Line of Credit Loan to Borrower, said sum to be used and applied by
Borrower pursuant to and in accordance with the 90 day budget projection which
is Schedule H attached to that certain Stock Exchange Agreement of even date
herewith entered into by and between Michael G. Todd, Prescott Investment, L.P.,
Howard Bloom and Ken Richardson.

C. Limitation on Subsequent Advances: Borrower agrees to use its best efforts in
order to negotiate with Borrower's promissory note holders the retirement of
their notes on terms materially the same as those described in Schedule F of the
said Stock Exchange Agreement. In the event that Borrower is not successful in
negotiating with Borrower's promissory note holders the retirement of their
notes on terms materially the same as those described in Schedule F of the said
Stock Exchange Agreement, the Lender will not be obligated to extend any
additional advance upon the Line of Credit Loan, and Lender may thereupon
terminate all further advances.

3. Default; Forbearance; Termination of Forbearance:

A. Default; Forbearance. If, immediately prior of at the date of the maturity of
the Note, Borrower anticipates becoming in default upon the Note or will become
in default upon the Note or is in default upon the Note for the reason only that
Borrower cannot pay in full and satisfy the Note, and if Borrower is not then
otherwise in default upon the Note (including any default upon this Agreement or
any other agreement or instrument securing the Note), then, upon Borrower's
written request to Lender, Lender will forbear from any collection activities
upon the Note and Lender will forbear from any collection activities upon the
collateral for the Note for a period of up to eighteen (18) months from the
maturity date of the Note, subject, however, to the following provisions:

1)   From and after the maturity date of the Note and continuing thereafter
     until the Note is paid in full and satisfied, interest upon the Note will
     continue to accrue at the default rate set forth in the Note
     (notwithstanding the forbearance described above).

2)   Interest which accrues upon the Note during the period of any such
     forbearance shall be payable at the time of the payment or payments of the
     outstanding principal amount of the Note, which payment or payments shall
     be applied as set forth in the Note.

3)   During the period of any such forbearance, no further advances shall be
     permitted under the Line of Credit Loan.

4}   Commencing with the maturity date of the Note and continuing thereafter
     during the period of any such forbearance until the Note is paid in full
     and satisfied, Borrower shall take such actions as may be necessary and/or
     desirable in order to pay in full and satisfy the Note, including, but not
     limited to, selling and liquidating

                                       16
<PAGE>

     or arranging for CDA to sell and liquidate the real property and personal
     property assets of CDA, and/or selling and liquidating the real property
     and personal property assets of Borrower.

5)   During the period of any such forbearance, Lender may seek and obtain a
     judgment upon the note (and the forbearance shall not apply to such
     activities).

B. Termination of Forbearance. Notwithstanding the forbearance of Lender agreed
to above if, during the period of any such forbearance, (a) Borrower otherwise
defaults upon the Note (other than the default with respect to which Lender
agreed hereinabove to forbear from enforcement and collection of the Note),
and/or if Borrower defaults upon this Agreement or any other agreement or
instrument securing the Note, (b) or if any third party commences an action
against Borrower or against CDA which action may, in the sole discretion of
Lender, have the ultimate effect of jeopardizing the collateral for the Note or
the assets of CDA, or the prospect of repayment of the Note therefrom, then
Lender may immediately upon written notice to Borrower, terminate its
forbearance and proceed to enforce and collect the Note.

4. Splitting of Line of Credit Loan and Collateral. If and at such time as CDA
emerges from its current Chapter 11 bankruptcy case, Lender may split the Line
of Credit Loan into more than one note and may require that each such note be
secured by a portion of the collateral which would otherwise be the collateral
for the Note, and Lender may assign one or more of such separate notes and its
related collateral to a third party lender or lenders who shall thereupon become
the Lender as to the note or notes so assigned. Borrower agrees to execute such
documents and instruments and to cause CDA to execute such documents and
instruments as may be necessary or desirable in Lender's discretion in order to
finalize such arrangements.

IN WITNESS WHEREOF, Borrower and Lender have executed this Exhibit "A" to
Business Loan Agreement this 26th day of April, 2002.

Signed, sealed and delivered
in the presence of;

                                 BORROWER:
                                 CAPITOL COMMUNITIES CORPORATION,
                                 a Nevada corporation

/s/ [ILLEGIBLE]                  By: /s/ MICHAEL G. TODD
---------------------            ----------------------------------
Ray Baptista                     Michael G. Todd, President

                                 LENDER:
                                 BOCA FIRST CAPITAL LLLP,
                                 a Florida limited liability limited partnership
                                 By: Addison Capital Group, LLC,
                                     general partner

/s/ [ILLEGIBLE]                      By: /s/ HOWARD BLOOM
---------------------                    --------------------------
                                     Howard Bloom, Manager

                                       17
<PAGE>

                                     JOINDER

The undersigned shall and do hereby join into the foregoing business loan
agreement for the purpose only of agreeing to be bound and abide by the
provisions of section 1 of Exhibit "A" thereto.

Dated this 26th day of April, 2002.

                                            /s/ MICHAEL G. TODD
                                            ------------------------------------
                                            MICHAEL G. TODD, as Stockholder and
                                            Director of Capitol Communities
                                            Corporation

                                            PRESCOTT INVESTMENT, L.P.,
                                            a Nevada limited partnership, as
                                            Stockholder of Capitol Communities
                                            Corporation
                                            By: Granite Industries, LLC,
                                                general partner

                                                By: /s/ MICHAEL G. TODD
                                                    ----------------------------
                                                Michael G. Todd, Managing Member

                                       18This instrument was prepared by
and should be returned to:
Elizabeth Brandon-Brown Esq.
Brandon Brown P.L.
9045 La Fontana Blvd., #B-1
Boca Raton, FL 33434

                         MORTGAGE MODIFICATION AGREEMENT
                         -------------------------------

     THIS MORTGAGE MODIFICATION AGREEMENT (the "Modification") is made and
entered into as of this 14th day of September, 2004, by CAPITOL FIRST
CORPORATION, formerly known as Capitol Communities Corporation, a Nevada
corporation (hereinafter referred to as the "Mortgagor"), having an address of
7100 Camino Real Blvd., Suite 402, Boca Raton, FL 33433, in favor of BOCA FIRST
CAPITAL, LLLP, and its successors and assigns (hereinafter referred to as the
"Mortgagee"), having an address of 7100 W. Camino Real Blvd., Suite 402, Boca
Raton, FL 33433.

                              W I T N E S S E T H:
                              - - - - - - - - - -

     WHEREAS, Mortgagor previously obtained a loan from Mortgagee in the amount
of $4,000,000.00, as evidenced by that certain Revolving Line of Credit
Promissory Note dated April 26, 2002, and modified on May 15, 2002, and
September 27, 2002, in the original principal amount of $4,000,000.00, made by
Mortgagor to the order of Mortgagee (the "Original Note") and secured by a
Mortgage dated September 27, 2002, made by Mortgagor for the benefit of
Mortgagee, and recorded on October 2, 2002, as Instrument Number 2002182700,
records of Pulaski County, Arkansas, (the "Original Mortgage") encumbering
certain real property more fully described in Exhibit "A" attached hereto and
made a part hereof (the "Property"); and

     WHEREAS, Mortgagor has requested and Mortgagee has agreed to renew the loan
evidenced by the Original Note in the amount of $4,000,000.00 made by Mortgagor
to the order of Mortgagee and as part thereof, the Mortgagor will execute and
deliver to the Mortgagee a Renewal Revolving Line of Credit Promissory Note on
or about the date hereof, in the original principal amount of $4,000,000.00 (the
"Renewal Note"), which shall renew the indebtedness due under the New Note; and

     WHEREAS, Mortgagor and Mortgagee desire to enter into this Modification in
order to evidence the fact that the Mortgage, as amended hereby, secures the
Renewal Note; and

<PAGE>

     WHEREAS, the Mortgagor acknowledges that the execution of this Modification
confers a real and substantial benefit upon Mortgagor and further acknowledges
that it is supported by good and valuable consideration.

     NOW, THEREFORE, in consideration of the sum of Ten and No/100ths Dollars
($10.00), the recitals hereinabove set forth which are an integral part of this
Modification and not mere recitals thereto, and other good and valuable
considerations, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto intending to be legally bound agree as follows:

     1. Recitals. The foregoing recitals are true and correct. Unless otherwise
defined herein, all capitalized terms shall have the same meaning ascribed in
the Mortgage.

     2. Modification of Mortgage. The Mortgagor and the Mortgagee hereby modify
and amend the Mortgage in order to provide that the Mortgage shall secure the
indebtedness evidenced by the Renewal Note, together with interest thereon and
any and all other sums due or which may become due from the Mortgagor to the
Mortgagee thereunder. The term "Note," as used in the Mortgage, is hereinafter
deemed to refer to the Renewal Note.

     3. No Novation. It is the express intent of the parties hereto that the
transaction contemplated hereby shall not be a novation of the loan previously
made by the Mortgagee to the Mortgagor and will not affect the lien priority of
the Mortgage and the other loan documents.

     4. Ratification. The Mortgagor ratifies and confirms the lien and security
interests of the Mortgage upon and in any and all property, real, personal or
mixed, tangible or intangible, now or hereafter encumbered by the Mortgage and
grants to the Mortgagee the benefit of a lien upon and security interest in all
such property as security for the indebtedness evidenced by the Renewal Note.

     5. Acknowledgment of Mortgagor. The Mortgagor acknowledges by the execution
hereof that as of the date hereof all principal and interest evidenced by the
Renewal Note through the date of this Agreement are unconditionally due and
owing to the Mortgagee as provided in the Renewal Note and that the Mortgagor
has no actions, defenses, demands and/or claims of set-off or deduction
whatsoever, against (i) the Mortgagee, (ii) the indebtedness evidenced by the
Renewal Note and owed to the Mortgagee or (iii) the Mortgage. Furthermore, the
Mortgagor acknowledges that, as of the date hereof, the Mortgagee has in no way
defaulted or performed any act or omission under the Renewal Note, the Mortgage
or the other loan documents or any other agreements between the Mortgagor and
the Mortgagee which would give rise to any action or actions, cause or causes of
actions, suits, debts, sums of money, damages, claims, costs, expenses and/or
demands whatsoever, in law or in equity or otherwise, by the Mortgagor against
the Mortgagee.

     6. Binding Effect. This Agreement shall be binding upon and inure to the
benefit of the successors and assigns of the parties hereto.

     7. Ratification. Except as expressly modified hereby, the terms and
conditions of the Mortgage shall remain in full force and effect and are hereby
ratified and confirmed.

                                       2
<PAGE>

     8. Counterparts. This Modification may be executed in any number of
counterparts, each of which shall be deemed an original instrument, but all such
counterparts together shall constitute one and the same instrument.

     IN WITNESS WHEREOF, the parties have caused this Modification to be
executed effective the day and year first above written.

Signed, sealed and delivered                CAPITOL FIRST CORPORATION
in the presence of:                         a Nevada corporation

                                            By: /s/ ASHLEY B. BLOOM
--------------------------------                --------------------------------
Print Name:                                    Ashley B. Bloom, Acting President
           ---------------------

--------------------------------
Print Name:
           ---------------------

STATE OF FLORIDA

COUNTY OF PALM BEACH

     The foregoing instrument was acknowledged before me this 14th day of
September, 2004 by Ashley B. Bloom, acting president of CAPITOL FIRST
CORPORATION, a Nevada corporation, on behalf of the company. He is personally
known to me.

                                           -----------------------------------
                                           Notary Public

                                                    Monica Schreiber
                                           -----------------------------------
                                           (Print, Stamp or Type Name)

                                           My Commission Expires:  1/8/07

                        SIGNATURES CONTINUED ON NEXT PAGE

                                       3
<PAGE>

          ADDITIONAL SIGNATURE PAGE TO MORTGAGE MODIFICATION AGREEMENT

Signed, sealed and delivered                BOCA FIRST CAPITAL, LLLP
in the presence of:                         By Addison Capital Group, LLC its
                                            General Partner

                                            By: /s/ HOWARD BLOOM
--------------------------------                --------------------------------
Print Name:                                 Its: Manager
           ---------------------            Print Name:
                                                       -------------------------

--------------------------------
Print Name:
           ---------------------

STATE OF FLORIDA

COUNTY OF PALM BEACH

     The foregoing instrument was acknowledged before me this 20th day of
September, 2004 by _______________________, manager of Addison Capital Group,
LLC, the general partner of Boca First Capital, LLLP, on behalf of the company.
He/she is personally known to me. identification.

                                           Monica Schreiber
                                           Notary Public

                                           -----------------------------------
                                           (Print, Stamp or Type Name)

                                           My Commission Expires:  1/8/07

                                       4
<PAGE>

                                    EXHIBIT A
                                    ---------

                                    MORTGAGE

                                       5

<PAGE>

                    Exhibit A to Mortgage Modification Agmt.

********************************************************************************

                                    MORTGAGE
                      (with Assignment of Leases and Rents)

             -------------------------------------------------------

KNOW ALL MEN BY THESE PRESENTS:

        1. That Capitol Development of Arkansas, Inc., an Arkansas corporation
(hereinafter sometimes referred to as the "Mortgagor"), for valuable
consideration, and in order to induce Boca First Capital LLP, a Florida limited
liability limited partnership (the "Mortgagee"), to release certain collateral
and to continue to extend credit to Capitol Communities Corporation, a Nevada
corporation and the sole shareholder of the Mortgagor ("CCC"), in the principal
sum of Four Million Dollars ($4,000,000.00), does hereby grant, bargain, sell,
convey, assign, grant a security interest in and deliver unto the Mortgagee, and
unto its successors and assigns, the following described lands lying in Pulaski
County, Arkansas:

        Those lands described on Schedule "A" (consisting of four (4) pages),
        affixed hereto and by this reference made a part hereof, LESS AND EXCEPT
        the lands described on Schedule "B" (consisting of one (1) page),
        affixed hereto and by this reference made a part hereof;

        Together with all easements, rights-of-way and rights used in connection
        therewith, or as a means of access thereto, and all tenements,
        hereditaments and appurtenances thereunto belonging, or appertaining
        thereto, all improvements and fixtures located thereon or attached
        thereto, and all water rights and shares of stock evidencing the same;

        Together with, all right, title and interest of Mortgagor, now owned or
        hereafter acquired, in or to any land lying within the right-of-way of
        any street, open or proposed, adjoining the Property, and any and all
        sidewalks, alleys and strips and gores of land adjacent to or used in
        connection with the Property;

                                    MORTGAGE
                               PAGE 1 OF 12 PAGES
<PAGE>

        Together with, all right, title and interest of Mortgagor in and to all
        tangible and intangible personal property (hereinafter referred to as
        "Personal Property") owned by Mortgagor and now or at any time hereafter
        located on or at the Property or used in connection therewith,
        including, but not limited to: all drawings, permits, engineering and
        other studies and contracts rights regarding the development of the
        Property;

        Together with, all of the estate, interest, right, title, other claim or
        demand, including claims or demands with respect to the proceeds of
        insurance and effect with respect thereto, which Mortgagor now has or
        may hereafter acquire in the Property, and any and all awards made for
        the taking by eminent domain, or by any proceeding or purchase in lieu
        thereof of the whole or any part of the Property, including without
        limitation any awards resulting from a change in grade of streets and
        awards for severance damages.

        (collectively referred to as the "Property").

        2. To have and to hold the same unto the above-named Mortgagee and unto
its successors and assigns forever.

        This Mortgage is to secure indebtedness from CCC to Mortgagee in the
principal amount of Four Million Dollars ($4,000,000.00), together with interest
thereon until maturity at the rate of ten percent (10%) per annum (see paragraph
4 below).

        3. Mortgagor covenants with the Mortgagee, its successors and assigns,
that Mortgagor will forever warrant and defend the title to all of the Property
against all lawful claims whatever, except easements, restrictions and
stipulations of record, applicable zoning rules and regulations and taxes not
yet due and payable.

        4. Provided, however, the foregoing conveyance is given as a Mortgage
for the purpose of securing the following:

                (a) A Promissory Note dated April 26, 2002, executed and
        delivered by CCC, and amended on May 15, 2002, to and in favor of
        Mortgagee (the "Note"), and all successive extensions and renewals of
        the indebtedness represented thereby, evidencing a principal
        indebtedness of Four Million Dollars ($4,000,000.00), executed by CCC
        and payable to the order of Mortgagee, said Note bearing interest from
        date until paid at the rate(s) recited in said Note and payable as
        stated in said Note, but in any event payable in full

                                    MORTGAGE
                               PAGE 2 OF 12 PAGES
<PAGE>

        On November 1, 2004, the terms of which are hereby incorporated by
        reference. The indebtedness arising pursuant to the Note, and all
        extensions and renewals thereof, are referred to herein as the "Primary
        Indebtedness".

                (b) The repayment to the Mortgagee of all of its reimbursable
        expenses, at any time accruing to the Mortgagee under the provisions of
        this Mortgage and the performance of every other obligation of Mortgagor
        in this Mortgage.

        Upon payment of all such sums, this Mortgage shall become void and will
be released by release deed to be recorded at the expense of the Mortgagor.

        5. The Mortgagor agrees:

        (a) Violation of Law. Mortgagor agrees not to commit, suffer or permit
any act to be done in or upon the Property in violation of any law, ordinance or
regulation relating to Property.

        (b) No Construction. Mortgagor agrees not to erect a new addition upon
the Property without the prior written consent of Mortgagee.

        (c) Insurance. Mortgagor agrees to maintain insurance as follows:

        (1) Coverage Required.

                (i) Comprehensive public liability insurance on an "occurrence
        basis" against claims for "personal injury" including, without
        limitation, bodily injury, death or property damage occurring on, in or
        about the Property and the adjoining streets, sidewalks and passageways.

                (ii) Property insurance insuring the Property and all
        improvements thereon against loss by fire and other hazards included
        within the term "extended coverage" and any other hazards for which
        Mortgagee requires insurance.

        All such policies of insurance required by the Mortgagee shall be in the
form, with such companies and in amounts satisfactory to the Mortgagee. All
policies of insurance required by the Mortgagee shall contain an endorsement or
agreement by the insurer that any loss shall be payable in accordance with the
terms of such policy notwithstanding any act

                                    MORTGAGE
                               PAGE 3 OF 12 PAGES
<PAGE>

or negligence of the Mortgagor which might otherwise result in forfeiture of
said insurance and the further agreement of the insurer waiving all rights of
setoff, counterclaim or deduction against Mortgagor.

        (2) Delivery of Policies, Payments of Premiums. That all policies of
insurance shall be issued by companies in an amount in each company satisfactory
to Mortgagee. All policies of insurance shall have attached thereto a lender's
loss payable endorsement for the benefit of Mortgagee in a form satisfactory to
Mortgagee. Mortgagor shall furnish Mortgagee with an original policy of all
policies of required insurance. If Mortgagee consents to Mortgagor providing any
of the required insurance through blanket policies carried by Mortgagor and
covering more than one location, then Mortgagor shall furnish Mortgagee with a
certificate of insurance of each such policy setting forth the coverage, the
limits of liability, the name of carrier, the policy number, and the expiration
date. At least thirty (30) days prior to the expiration of each such policy,
Mortgagor shall furnish Mortgagee with evidence satisfactory to Mortgagee of the
payment of premium and the reissuance of a policy continuing insurance in force
as required by this Mortgage. All such policies shall contain a provision that
such policies will not be canceled or materially amended, which term shall
include any reduction in the scope or limits of coverage, without at least
fifteen (15) days prior written notice to Mortgagee. In the event Mortgagor
fails to provide, maintain, keep in force or deliver and furnish to Mortgagee
the policies of insurance required by this Mortgage, Mortgagee may procure such
insurance or single-interest insurance for such risk covering Mortgagee's
interest and Mortgagor will pay all premiums thereon promptly upon demand by
Mortgagee, and until such payment is made by Mortgagor, the amount of all such
premiums, together with interest thereon at the rate recited in the Note shall
be secured by this Mortgage.

        (d) Taxes and Impositions. To pay, prior to delinquency, all taxes,
special improvement assessments and other governmental charges against the
Property at any time levied or becoming due.

        (e) Priority of Lien. To prevent the Property from becoming encumbered
by any lien or charge having priority over, or on a parity with, the lien of
this Mortgage, except the special assessments of any improvement districts which
have been or may be formed to construct improvements to or for the benefit of
the Property and except for the Senior Mortgage.

        6. Events of Default. The occurrence of any of the following shall be
deemed an "Event of Default":

                                    MORTGAGE
                               PAGE 4 OF 12 PAGES
<PAGE>

                (a) Upon the filing of a voluntary or involuntary petition to
        subject Mortgagor (or any party obligated as maker, endorser, surety or
        guarantor for the payment of the secured indebtedness) to any
        bankruptcy, debt-adjustment, receivership or other insolvency
        proceeding.

                (b) Upon the occurrence of any event, which, under the terms of
        the instrument(s) at any time evidencing the indebtedness secured
        hereby, warrants an acceleration (at the option of the payee) of the
        maturity of said indebtedness.

                (c) If default shall be made in the payment of any part of the
        Primary Indebtedness secured hereby, or any interest accruing on such
        Primary Indebtedness, as the same becomes due and payable according to
        the terms or the original note, or of any extension or renewal thereof
        at any time evidencing such indebtedness.

                (d) If Mortgagor shall fail to comply with any of the agreements
        contained in paragraph 5 of this Mortgage.

                (e)If there are material changes in the officers, directors, or
        controlling ownership of Mortgagor without prior written approval of the
        Mortgagee.

        It is understood that the foregoing acceleration provisions will be
applicable not only to the maturities recited in the Note, but also to any
substituted maturities created by extension or renewal and also to any other
indebtedness secured by this Mortgage. The failure of the Mortgagee to declare
any acceleration of maturities when a ground therefor exists, even though such
forbearance may be repeated from time to time, or the default be a continuing
one, will not constitute a waiver of the right of the Mortgagee to accelerate
maturities upon a recurrence of the same ground therefor; nor will the act of
the Mortgagee in remedying any condition resulting from Mortgagor's default bar
the Mortgagee from declaring an acceleration of maturities by reason of such
default.

        7. Remedies Upon Default. Upon the occurrence of an Event of Default,
the Mortgagee shall be entitled to the following remedies:

                (a) At the option of the Mortgagee, declare the entire unmatured
        portion of all indebtedness secured hereby, together with all interest
        accrued on the entire secured debt, to be immediately due and payable,
        (which acceleration of maturity may be accomplished without notice to
        anyone).

                                    MORTGAGE
                               PAGE 5 OF 12 PAGES
<PAGE>

                (b) Foreclosure this Mortgage by appropriate proceeding in any
        court of competent jurisdiction, appoint a receiver, or specifically
        enforce any of the covenants hereof.

                (c) Make any expenditures for the protection of the Property or
        of the lien of this Mortgage (the Mortgagee shall have the uncontrolled
        discretion as to the necessity of making any such expenditure), the
        repayment of such sum on demand with interest at the rate recited in the
        Note shall be the personal obligation of the Mortgagor and such
        obligation to repay will constitute a part of the indebtedness secured
        hereby.

                (d) In the event the Mortgagee at any time holds additional
        security for any of its obligations secured hereby, it may enforce the
        sale thereof or otherwise realize upon the same, at its option, either
        before or concurrently herewith or after a sale is made hereunder
        pursuant to a foreclosure proceeding.

                (e) The Mortgagee may enforce the lien of this Mortgage in
        respect to all real and personal property encumbered hereby by
        proceedings that are prosecuted simultaneously or are prosecuted
        separately in such order as the Mortgagee may select.

                (f) In the event the Mortgagee takes possession of the Property,
        it shall have no obligation to continue to operate any business
        conducted on the Property.

                (g) Mortgagee may exercise any right or remedy available either
        under this Mortgage, or the laws of Arkansas, either concurrently or
        independently, and in such other as it may determine.

        8. Miscellaneous Provisions.

        (a) Waiver of Statutory Rights. The Mortgagor agrees that it will not
apply for or avail itself of any appraisement, valuation, stay, extension or
exemption laws or so-called "moratorium laws", now existing or hereinafter
enacted, in order to prevent or hinder the enforcement or foreclosure of this
Mortgage, and hereby expressly waives the benefit of such laws, and the
Mortgagor specifically waives all rights of redemption from any sale made by
decree of Court on foreclosure of this instrument, including specifically all
rights of redemption conferred by the Act passed by the General Assembly of
Arkansas on May 8, 1899, and acts amendatory thereof.

                                    MORTGAGE
                               PAGE 6 OF 12 PAGES
<PAGE>

        (b) Inspections. The Mortgagee, or its agents, representatives or
workmen, are authorized to enter at any reasonable time upon or in any part of
the Property for the purpose of inspecting the same and for the purpose of
performing any acts it is authorized to perform under the terms of this
Mortgage.

        (c) Notices. Any notice which either party hereby may desire or be
required to give to the other party shall be in writing and shall be effective
only if the same is delivered by personal service or mailed by certified mail,
postage prepaid, return receipt requested, addressed to the address set forth at
the conclusion of this Mortgage. Any party may at any time change its address
for such notices by delivering or mailing to the other parties hereto, as
aforesaid, a notice of such change.

        (d) Construction of this Instrument. Notwithstanding the use of the
feminine, masculine or neuter gender with reference to any party in this
Agreement, the same shall, in each instance, be construed to refer to the
individual party. The captions and headings of various paragraphs of this
Mortgage are for convenience only and are not to be construed as defining or
limiting in any way, the scope or intent of the provisions hereof. This Mortgage
and all provisions hereof shall extend to and be binding upon the Mortgagor and
all parties claiming by, through or under the Mortgagor and the word "Mortgagor"
when used herein shall include all persons liable for the payment of the
indebtedness secured hereby or any part thereof, whether or not such persons
shall have executed the Note or this Mortgage. The word "Mortgagee" when used
herein shall include the successors and assigns of the Mortgagee named herein,
and the holder or holders, from time to time, of the notes secured hereby.

        (e) Indemnifications: Subrogations and Waiver of Setoff.

        (i) If Mortgagee is made a party defendant to any litigation concerning
this Mortgage or the Property or any part hereof or any interest therein, or the
occupancy thereof by Mortgagor, then the Mortgagor shall indemnify, defend and
hold Mortgagee harmless from all liability by reason of such litigation,
including reasonable attorneys' fees and expenses incurred by litigation if
prosecuted to judgment. If Mortgagee commences an action against Mortgagor to
enforce any of the terms hereof or because of the breach by Mortgagor of any of
the terms hereof, or for the recovery of any sums secured hereby, Mortgagor
shall pay to Mortgagee reasonable attorneys' fees and expenses and the right to
attorneys' fees and expenses shall be deemed to have been accrued on the
commencement of such action and

                                    MORTGAGE
                               PAGE 7 OF 12 PAGES
<PAGE>

shall be enforceable whether or not such action is prosecuted to judgment. If
Mortgagor breaches any term of this Mortgage, Mortgagee may employ an attorney
or attorneys to protect its rights hereunder, and in the event of such
employment following any breach by Mortgagor, Mortgagor shall pay Mortgagee
reasonable attorneys' fees and expenses incurred by Mortgagee, not to exceed Ten
Percent (10%) of the principal and interest indebtedness secured hereby, whether
or not an action is actually commenced against Mortgagor by reason of breach.

        (ii) Mortgagor waives any and all right to claim or recover against
Mortgagee, its officers, employees, agents and representatives, for loss or
damage to Mortgagor, the Property, Mortgagor's property or the property of
others under Mortgagor's control from any cause insured against or required to
be insured against by provisions of this Mortgage.

        (iii) All sums payable by Mortgagor hereunder shall be paid without
notice, demand, counterclaim, setoff, deduction or defense and without
abatement, suspension, deferment, diminution or reduction, in the obligations
and liabilities of Mortgagor hereunder shall in no way be released, discharged
or otherwise affected (except as expressly provided herein) by reason of: (1)
any damage to or destruction of or any condemnation or similar taking of the
Property or any part thereof; (2) any restriction or prevention of or
interference with any use of the Property or any part thereof; (3) any title
defect or encumbrance or any eviction from the Property or the improvements
thereon or any part thereof by title paramount or otherwise; (4) any bankruptcy,
insolvency, reorganization, composition, adjudgment, dissolution, liquidation,
or other like proceeding relating to Mortgagee, or any action taken with respect
to this Mortgage by any trustee or receiver of Mortgagee or by any Court, in any
such proceeding; (5) any claim which Mortgagor has or might have against
Mortgagee; (6) any default or failure on part of Mortgagee to perform or comply
with any of the terms hereof or of any other agreement with Mortgagor; or (7)
any other occurrence whatsoever, whether similar or dissimilar to the foregoing,
whether or not Mortgagor shall have notice or knowledge of any of the foregoing.
Except as expressly provided herein, Mortgagor waives all rights now or
hereafter conferred by statute or otherwise to any abatement, suspension,
deferment, diminution or reduction of any such secured hereby and payable by
Mortgagor.

        (f) Severability. If any part of this instrument is invalid or
unenforceable, all other provisions shall nevertheless remain in full force and
effect.

        (g) Environmental Matters. To the best of its knowledge, information and
belief, after due inquiry, Mortgagor has duly complied with, and its businesses,
operations, assets, equipment, property, leaseholds, or other facilities are in
compliance with the provisions of

                                    MORTGAGE
                               PAGE 8 OF 12 PAGES
<PAGE>

all federal, state and local environmental, health, and safety laws, codes and
ordinances, and all rules and regulations promulgated thereunder. Mortgagor has
been issued (or has applied for) and will maintain all required federal, state
and local permits, licenses, certificate and approvals relating to (1) air
emissions; (2) discharges to surface water or ground water; (3) noise emissions;
(4) solid or liquid waste disposal; (5) the use, generation, storage,
transportation, or disposal of toxic or hazardous substances or wastes (intended
hereby and hereafter to include any and all such materials listed in any
federal, state or local law, code or ordinance and all rules and regulations
promulgated thereunder as hazardous or potentially hazardous); or(6) other
environmental, health, or safety matters. Mortgagor has not received notice of,
nor knows of, or suspects facts which might constitute an violations of any
federal, state or local environmental, health, or safety laws, codes or
ordinances, and any rules or regulations promulgated thereunder with respect to
its businesses, operations, assets, equipment, property, leaseholds, or other
facilities. Except in accordance with a valid governmental permit, license,
certificate, or approval, there has been no emission, spill, release or
discharge into or upon (1) the air; (2) soils or any improvements located
thereon; (3) surface water or ground water; or (4) the sewer, septic system or
waste treatment, storage or disposal system servicing the premises of any toxic
or hazardous substances or wastes at or from the premises; and accordingly the
premises of Mortgagor and the Land are free of all such toxic or hazardous
substances or wastes. There has been no complaint, order, directive, claim,
citation or notice by any governmental authority or any person or entity with
respect to (1) air emissions; (2) spills, releases or discharges to soils or
improvements located thereon, surface water, ground water or the sewer, septic
system or waste treatment, storage for disposal systems servicing the premises;
(3) noise emissions; (4) solid or liquid waste disposal; (5) the use,
generation, storage, transportation or disposal of toxic or hazardous substances
or waste; or (6) other environmental, health or safety matters affecting
Mortgagor or its business, operations, assets equipment, property, leaseholds,
or other facilities. Mortgagor does not have any indebtedness, obligation or
liability, absolute or contingent, matured or not matured, with respect to the
storage, treatment, cleanup, or disposal of any solid wastes, hazardous wastes
or other toxic or hazardous substances (including, without limitation, any such
indebtedness, obligation, or liability with respect to any current regulation,
law or statute regarding such storage, treatment, cleanup or disposal).
Mortgagor hereby covenants and agrees to comply with the provisions of all
federal, state and local environmental, health, and safety laws, codes and
ordinances, and all rules and regulations issued thereunder; notify Mortgagee
immediately of any notice of a hazardous discharge or environmental complaint
received from any governmental agency or any other party; notify Mortgagee
immediately of any hazardous discharge from or affecting its premises;
immediately contain and remove the same, in compliance with all applicable laws;
promptly pay any find or penalty assessed in connection therewith; permit
Mortgagee to inspect the premises, to conduct tests thereon, and ti inspect all
books, correspondence and records

                                    MORTGAGE
                               PAGE 9 OF 12 PAGES
<PAGE>

pertaining thereto; and at Mortgagee's request, and at Mortgagor's expense,
provide a report of a qualified environmental engineer, satisfactory in scope,
form and content to Mortgagee, and such other and further assurances reasonably
satisfactory to Mortgagee that the condition has been corrected.

        (h) Assignment of Leases and Rents. Mortgagor hereby assigns to
Mortgagee all of Mortgagor's interest as Lessor in any and all leases now or
hereafter existing with respect to any part of the Property, and all rentals,
issues and profits due or which may become due to Mortgagor under the terms of
such leases.

        (j) Release Provisions. The Mortgagee and its assignees and subsequent
holders of the Note, shall deliver to Mortgagor partial releases of this
Mortgage for portions of Property secured by this Mortgage upon payment of a
release price equal to Fourteen Thousand Dollars ($14,000.00) per acre for each
acre of area within each parcel which Mortgagee seeks a release for a release
payment, provided (i) Mortgagor will not be entitled to a partial release if
there is any default remaining uncured pursuant to the Note or Mortgage; (ii)
Mortgagor shall first have submitted a survey designating the parcel to be
released and its total square footage, and also showing the remainder of the
Property or a copy of the recorded plat for any platted lot being released;
(iii) such release shall not cause any of the remaining Property to become
landlocked; (iv) the dimensions and layout of the parcel being released shall be
reasonably acceptable to the Mortgagee with respect to there not being a
disproportionate amount of road frontage included, and the release shall not
render the size or configuration of the remainder of the Property to be
commercially unacceptable or otherwise adversely impacted; (v) any easements
necessary to extend utility lines or facilities under or across the parcel to be
released to serve the remainder of the Property shall be created and granted
concurrently with the release; and (vi) the principal payment shall be applied
against the Note in the reverse order of maturity. Each such payment of a
release price shall be applied as an advance payment of principal of the Note.

        EXECUTED effective the 27 day of September, 2002.

                                          MORTGAGOR:

                                          CAPITOL DEVELOPMENT OF ARKANSAS, INC.,
                                           an Arkansas corporation

                                          By:    /s/ MICHAEL G. TODD
                                             ------------------------------
                                          Name:  MICHAEL G. TODD, PRESIDENT

                                    MORTGAGE
                               PAGE 10 OF 12 PAGES
<PAGE>

                                          Title: PRESIDENT

                                    MORTGAGE
                               PAGE 11 OF 12 PAGES
<PAGE>

STATE OF FLORIDA
COUNTY OF PALM BEACH

                                 ACKNOWLEDGMENT

        On this 27 day of September, 2002, before me, a Notary Public, duly
commissioned, qualified and acting, within and for said County and State,
appeared in person the within named Mike Todd, being the person authorized by
Capitol Development of Arkansas, Inc. to execute such instrument, to me
personally well known, who stated that he was the President of Capitol
Development of Arkansas, Inc., executed and delivered said foregoing instrument
for the consideration, uses and purposes therein mentioned and set forth.

        IN TESTIMONY WHEREOF, I have hereunto set my hand and official seal this
__ day of September, 2002.

                                          /s/ EVELYN R GREGORY
                                          --------------------------------------
                                          NOTARY PUBLIC

                                               OFFICIAL NOTARY SEAL
                                                 EVELYN R GREGORY
                                          NOTARY PUBLIC STATE OF FLORIDA
                                              COMMISSION NO. DD009106
                                          MY COMMISSION EXP. APR. 9, 2005

                                    MORTGAGE
                               PAGE 12 OF 12 PAGES
<PAGE>

                                   SCHEDULE A

PARCEL 1

Lands lying in a fractional part of Section 29 and a part of the East 1/2 of
Section 30, and a part of Section 32 and a part of the East 1/2 of Section 31,
and a part of the Southwest 1/4 of Section 3.1, all in Township 3 North, Range
13 West, Pulaski county, Arkansas and more particularly described as follows:

Commencing at the Northwest corner of said Section 29 and the Northeast corner
of said Section 30, (Arkansas state Plane Coordinates of North 196,663.3542 East
1,872,319.4376) being the point of beginning; thence along the West Line of
Section 29, South 00 degrees 29 minutes 07 seconds West 130.00 feet; thence
leaving the said West Section line South 67 degrees 08 minutes 52 seconds East
227.52 feet; thence South 87 degrees 58 minutes 13 seconds East 1,044.66 feet;
thence North 75 degrees 55 minutes 37 seconds East 378.36 feet; thence South 89
degrees 11 minutes 35 seconds East 359.04 feet; thence South 67 degrees 37
minutes 12 seconds East 147.08 feet; thence South 50 degrees 41 minutes 28
seconds East 206.79 feet; thence South 34 degrees 34 minutes 27 seconds East
257.35 feet to a point on the North right of way line of Odom Boulevard; thence
along the said North right of way line along a 05 degrees 02 minutes 11 seconds
curve to the right a distance of 221.86 feet to a point to which there is a
chord bearing and distance of South 65 degrees 02 minutes 41 seconds West 221.51
feet; thence continuing along the said North right of way line South 70 degrees
37 minutes 41 seconds West 914.55 feet; thence leaving the said North right of
way line South 19 degrees 22 minutes 19 seconds East 120.00 feet to a point on
the South right of way line of Odom Boulevard; thence along the said South right
of way line North 70 degrees 37 minutes 41 seconds East 914.55 feet; thence
continuing along the said South right of way line along a 04 degrees 33 minutes
21 seconds curve to the left a distance of 353.13 feet to a point to which there
is a chord bearing and distance of North 62 degrees 35 minutes 03 seconds East
351.97 feet to a point on the West right of way line on Naylor Drive; thence
leaving the said South right of way line and continuing along the said West
right of way line along the following bearings and distances; South 82 degrees
31 minutes 09 seconds East 57.69 feet; thence along a 05 degrees 40 minutes 21
seconds curve to the right a distance of 361.43 feet to a point to which there
is a chord bearing and distance of South 27 degrees 29 minutes 52 seconds East
359.50 feet; thence South 17 degrees 14 minutes 48 seconds East 251.34 feet;
thence along a 06 degrees 02 minutes 33 seconds curve to the left a distance of
604.12 feet to a point to which there is a chord bearing and distance of South
32 degrees 29 minutes 40 seconds East 498.20 feet; thence South 47 degrees 42
minutes 31 seconds East 642.29 feet; thence along a 05 degrees 48 minutes 55
seconds curve to the right a distance of 383.27 feet to a point to which there
is a chord bearing and distance of South 36 degrees 33 minutes 51 seconds East
380.86 feet; thence South 25 degrees 25 minutes 11 seconds East 60.70 feet;
thence South 17 degrees 26 minutes 39 seconds West 36.65 feet to a point on the
West right of way line of Millwood Circle; thence leaving the said West right of
way line of Naylor Drive and continuing along the said West right of way line of
Millwood Circle along the following bearings and distances; along a 06 degrees
42 minutes 37 seconds curve to the left a distance of 1,492.75 feet to a point
to which there is a chord bearing and distances of South 16 degrees 18 minutes
21 seconds West 1,358.84 feet; thence South 25 degrees 38 minutes 51 seconds
East 441.69 feet; thence along a 04 degrees 10 minutes 57 seconds curve to the
right a distance of 385.93 feet to a point to which there is a chord bearing and
distance of South 17 degrees 25 minutes 08 seconds East 384.85 feet to a point
on the North boundary line of Phase If Edgewater Addition to the City of
Maumalle; thence leaving the said West right of way line and along the said
North Boundary line along the following bearings and distances; South 84 degrees
19 minutes 03 seconds West 170.31 feet;

<PAGE>

thence North 73 degrees 03 minutes 03 seconds West 1,097.68 feet; thence South
33 degrees 18 minutes 56 seconds West 254.89 feet; thence South 45 degrees 41
minutes 45 seconds West 349.34 feet; thence South 53 degrees 48 minutes 54
seconds West 399.77 feet; thence North 77 degrees 28 minutes 16 seconds West
156.73 feet to a point on the East right of way line of Odom Boulevard; thence
leaving the said North boundary line and along the said East right of way line
South 11 degrees 59 minutes 41 seconds West 271.19 feet; thence leaving the said
East right of way line North 78 degrees 00 minutes 19 seconds West 120.00 feet
to a point on the West right of way line of Odom Boulevard; thence along the
said West right of way line South 11 degrees 59 minutes 41 seconds West 411.42
feet; thence leaving said right of way North 60 degrees 20 minutes 33 seconds
West 482.14 feet; thence North 84 degrees 08 minutes 09 seconds West 412.97
feet; thence South 28 degrees 57 minutes 31 seconds West 559.97 feet; thence
South 80 degrees 35 minutes West 1908.70 feet; thence North 57 degrees 53
minutes 35 seconds West 1359.32 feet; thence North 01 degrees 31 minutes 10
seconds East, 2665.85 feet; thence North 00 degrees 29 minutes 24 seconds East
2515.59 feet; thence South 88 degrees 39 minutes 35 seconds East 952.34 feet;
thence North 35 degrees 38 minutes 05 seconds West 187.96 feet; thence South 88
degrees 39 minutes 35 seconds East, 462.49 feet; thence South 88 degrees 39
minutes 40 seconds East 1324.98 feet to the point of beginning seconds West
144.20 feet; thence along a 15 degrees 09 minutes 19 seconds curve to the left a
distance of 378.55 feet to a point to which there is a chord bearing and
distance of North 79 degrees 57 minutes 23 seconds East 362.93 feet; thence
North 51 degrees 16 minutes 17 seconds East 271.10 feet; thence along a 143
degrees 14 minutes 22 seconds curve to the left a distance of 64.99 feet to a
point to which there is a chord bearing and distance of North 04 degrees 43
minutes 21 seconds East 58.06 feet to a point on the West right of way line of
Odom Boulevard; thence along the said West right of the way line along the
following bearings and distances: along a 06 degrees 25 minutes 08 seconds curve
to the left a distance of 404.65 feet to a point to which there is a chord
bearing and distance of South 54 degrees 48 minutes 50 seconds East 401.20 feet;
thence South 67 degrees 47 minutes 51 seconds East 110.02 feet; thence leaving
the said West right of way line of Odom Boulevard South 34 degree 10 minutes 36
seconds West 207.84 feet; thence South 27 degree 48 minutes 21 seconds West
800.00 feet; thence South 64 degrees 10 minutes 59 seconds East 150.09 feet;
thence South 04 degrees 15 minutes 29 seconds West 339.65 feet; thence South 67
degrees 04 minutes 18 seconds West 223.74 feet; thence South 23 degrees 56
minutes 24 seconds West 710.90 feet; thence South 62 degrees 30 minutes 03
seconds East 493.10 feet; thence South 49 degrees 19 minutes 45 seconds West
111.30 feet; thence South 70 degrees 58 minutes 07 seconds West 649.93 feet;
thence North 75 degrees 26 minutes 49 seconds West 1,291.05 feet; thence North
60 degrees 05 minutes 23 seconds West 578.01 feet; thence North 57 degrees 43
minutes 01 seconds West 1,141.62 feet; thence North 48 degrees 41 minutes 18
seconds West 647.01 feet; thence North 45 degrees 44 minutes 57 seconds West
562.28 feet; thence North 80 degrees 20 minutes 39 seconds West 680.03 feet;
thence South 13 degrees 52 minutes 52 seconds East 1,233.39 feet to a point on
the ordinary high water line on the North bank of the Arkansas River;

<PAGE>

thence in a Northwestern direction along the meanders of the said ordinary high
water which is approximately by the following bearing and distances; North 49
degrees 45 minutes 26 seconds West 94.11 feet; thence North 39 degrees 48
minutes 54 seconds West 513.87 feet; thence North 45 degrees 03 minutes 02
seconds West 378.55 feet; thence North 40 degrees 44 minutes 17 seconds West
314.87 feet; thence North 53 degrees 34 minutes 17 seconds West 251.25 feet;
thence North 70 degrees 12 minutes 54 seconds West 157.95 feet; thence North 43
degrees 17 minutes 10 seconds West 211.26 feet; thence North 14 degrees 18
minutes 35 seconds West 273.34 feet; thence North 23 degrees 36 minutes 13
seconds West 223.69 feet to the North line of the Southwest 1/4 of Section 31;
thence leaving the said ordinary high water line on the North bank of the
Arkansas River and running along the said North line South 88 degrees 23 minutes
40 seconds East 2,170.00 feet to the center of said Section 31; thence along the
West line of the Northeast 1/4 of said Section 31/ North 00 degrees 35 minutes
57 seconds East 1,307.43 feet; thence continuing along the said West line North
01 degrees 19 minutes 08 seconds East 1,324.38 feet to the Southwest corner of
the Southeast 1/4 of Section 30; thence South 57 degrees 53 minutes 35 seconds
East 1359.32 feet; thence North 80 degrees 35 minutes 15 seconds East 1908.70
feet to the point of beginning.

Less and Except; well site No. 3: Part of the Fractional SW1/4 Section 31,
Township 3 North, Range 13 West, Pulaski County, Arkansas and more particularly
described as follows: Commencing at the Southeast corner of said Section 31
(Arkansas State Plane Coordinates of North 186,067.311, East 1,872,179.178);
thence North 1,109,69 feet; thence West 3,296.86 feet to the point of beginning;
thence South 13 degrees 52 minutes 52 seconds East 103.01 feet; thence due West
39.30 feet; thence due North 100.00 feet; thence due East 14.59 feet to the
point of beginning.

And less and Except: Well Site No. 4: Part of the Fractional SW1/4 Section 31,
Township 3 North, Range 13 West, Pulaski County, Arkansas and more particularly
described as follows: Commencing at the Southeast corner of Section 31, Township
3 North, Range 13 West; (Arkansas State Plane Coordinates-North Zone-North
185;067.311 East, 1,872,179.178) run North 2,296.086 fast to a point; thence run
west 3,961.953 feet to the point of beginning; thence run South 100.00 feet to a
point; thence run East 100.00 feet to a point; thence run North 100 feet to a
point; thence run 100.00 feet West to the point of beginning.

And Less and Except: The following lands lying in a fractional part of the NEI/4
of Section 31, Township 3 North, Range 13 West, Pulaski County, Arkansas, and
more particularly described as follows: Commencing at the Northeast corner of
said Section 31, (Arkansas State Plane Coordinates of North 191,343.281 East
1,872,217.486), thence South 1,061.89 feet, thence West 1,799.95 feet to the
point of beginning, thence South 24 degrees 22 minutes 56 seconds East 293.20
feet, thence South 56 degrees 13 minutes 48 seconds West 129.22 feet, thence
South 85 degrees 21 minutes 34 seconds West 173.66 feet; thence North 60 degrees
08 minutes 15 seconds West 176.03 feet; thence North 21 degrees 43 minutes 52
seconds East 290.13 feet,

<PAGE>

thence South 88 degrees 48 minutes 58 seconds East 204.75 feet to the point of
beginning.

                                END OF SCHEDULE A

<PAGE>

                                   SCHEDULE B

Part of the West 1/2 of Section 29, East 1/2 of Section 30, Northeast 1/4 of
Section 31 and Northwest 1/4 of Section 32, Township 3 North, Range 13 West,
City of Maumelle, Pulaski County, Arkansas, more particularly described as:

Beginning at the Northwest corner of said Section 29, said corner lying on the
West line of Lot 118, North Ridge Addition, an addition to the City of Maumelle,
Arkansas; thence South 00 degrees 24 minutes 38 seconds West along said West
line, 130.00 feet to the Southwest corner of said Lot 118; thence South 67
degrees 13 minutes 21 seconds East along the South line of said Lot 118 and
along the South line of Lots 119 and 120, said North Ridge Addition, 227.52
feet; thence South 88 degrees 04 minutes 05 seconds East along the South line of
Lots 120 through 134, said North Ridge Addition, 1044.82 feet; thence North 75
degrees 49 minutes 15 seconds East along the South line of Lots 134 through 139,
said North Ridge Addition, 378.40 feet; thence South 89 degrees 16 minutes 38
seconds East along the South line of Lots 139 through 145, said North Ridge
Addition 355.03 feet; thence South 67 degree 40 minutes 44 seconds East along
the South line of Lots 145 and 146, said North Ridge Addition, 147.08 feet;
thence South 50 degrees 54 minutes 47 seconds East along the South line of Lots
147, 148 and 149, said North Ridge Addition, 206.77 feet; thence South 34 degree
37 minutes 15 seconds East along the South line of Lots 149, 150, 151 and 152,
said North Ridge Addition, 257.35 feet to a point on the North right-of-way
line, of Odom Boulevard; thence Southwesterly along said North right-of-way line
being the arc of a 1137.63 foot radius curve to the right, a chord bearing and
distance of South 64 degrees 54 minutes 45 seconds West, 221.51 feet; thence
South 70 degrees 29 minutes 45 seconds West continuing along said North
right-of-way line, 914.55 feet; thence South 19 degrees 30 minutes 15 seconds
East along the West right-of-way line of said Odom Boulevard, 60.00 feet to the
centerline of said Odom Boulevard; thence Southerly along the proposed
centerline of said Odom Boulevard the following: (1) South 70 degrees 29 minutes
45 seconds West, 406.83 feet; (2) Southwesterly along the arc of a 900.00 foot
radius curve to the left, a chord bearing and distance of South 54 degrees 01
minutes 17 seconds West, 510.46 feet; (3) South 37 degrees 32 minutes 49 seconds
West, 1031.88 feet; (4) Southerly along the arc of a 900.00 foot radius curve to
the left, a chord bearing and distance of South 13 degrees 37 minutes 48 seconds
East, 1402.36 feet; (5) South 64 degree 48 minutes 26 seconds East, 622.59 feet;
(6) Southeasterly along the arc of a 600.00 foot radius curve to the right, a
chord bearing and distance of South 54 degrees 12 minutes 39 seconds East,
220.67 feet; (7) South 43 degrees 36 minutes 53 seconds East, 729.52 feet; (8)
Southeasterly along the arc of a 275.00 foot radius curve to the right, a chord
bearing and distance of South 15 degrees 49 minutes 44 seconds East, 256.39 feet
and (9) South 11 degrees 57 minutes 24 seconds West, 271.19 feet to a point on
the North right-of-way line of said Odom Boulevard; thence North 78 degrees 02
minutes 36 seconds West along said North right-of-way line, 60.00 feet to a
point on the West right-of-way line of said Odom Boulevard; thence South 11
degrees 57 minutes 24 seconds West long said West right-of-way line 410.29 feet;
thence North 60 degrees 26 minutes 11 seconds West, 482.04 feet; thence North 84
degrees 13 minutes 47 seconds West, 413.49 feet; thence South 26 degrees 52
minutes 17 seconds West, 560.01 feet; thence South 80 degrees 36 minutes 19
seconds West, 1902.67 feet; thence North 57 degrees 30 minutes 20 seconds West,
1373.65 feet to the Southwest corner of the SE1/4, said Section 30; thence North
01 degree 32 minutes 44 East along the West line of said SE1/4, 2664.09 feet to
the Northwest corner thereof; thence North 00 degrees 30 minutes 58 seconds East
along the West line of the NE1/4, said Section 30, 2515.00 feet; thence South 88
degrees 39 minutes 02 seconds East, 951.75 feet; thence North 35 degrees 49
minutes 40 seconds West, 187.96 feet to a point on the North line of the NW1/4
NE1/4, said Section 30; thence South 88 degrees 42 minutes 01 East along said
North line, 462.49 feet to the Northwest corner of the NE1/4 NE1/4 said Section
30; thence South 88 degrees 00 minutes 52 seconds East along the North line of
said NE1/4 NE1/4 1326.22 feet to the point of beginning.

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