Document:

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AGREEMENT between BLUE CAPITAL ASSOCIATES , INC. ("BLUE CAPITAL ") and CAPITAL
ADVISORY PARTNERS, LLC ("CAP")

         WHEREAS BLUE CAPITAL is a development stage company that has no
specific business plan and intends to merge, acquire or otherwise combine with
an unidentified company (the "Business Combination");

         WHEREAS CAP  assisted in the incorporation of BLUE CAPITAL;

         WHEREAS CAP is a shareholder of BLUE CAPITAL and desires that BLUE
CAPITAL locate a suitable target company for a Business Combination;

         WHEREAS BLUE CAPITAL desires that CAP assist it in locating a suitable
target company for a Business Combination;

         NOW THEREFORE, it is agreed:

         1.00   ACTIONS BY CAP.  CAP  agrees to assist in:

         1.01 The preparation and filing with the Securities and Exchange
Commission of a registration statement on Form 10-SB for the common stock of
BLUE CAPITAL;

         1.02 The location and review of potential target companies for a
Business Combination and the introduction of potential candidates to BLUE
CAPITAL;

         1.03 The preparation and filing with the Securities and Exchange
Commission of all required filings under the Securities Exchange Act of 1934
until BLUE CAPITAL enters into a Business Combination;

         2.00 PAYMENT OF CAP EXPENSES. CAP agrees to pay on behalf of BLUE
CAPITAL all corporate, organizational and other costs incurred or accrued by
BLUE CAPITAL until effectiveness of a Business Combination. CAP understands and
agrees that it will not be reimbursed for any payments made by it on behalf of
BLUE CAPITAL.

         3.00 INDEPENDENT CONSULTANT. CAP is not now, and shall not be,
authorized to enter into any agreements, contracts or understandings on behalf
of BLUE CAPITAL and CAP is not, and shall not be deemed to be, an agent of BLUE
CAPITAL.

         4.00 USE OF OTHER CONSULTANTS. BLUE CAPITAL understands and agrees that
CAP intends to work with consultants, brokers, bankers, or others to assist it
in locating business entities suitable for a Business Combination and that CAP
may share with such consultants or others, in its sole discretion, all or any
portion of its stock in BLUE CAPITAL and may make payments to such consultants
from its own resources for their services. BLUE CAPITAL shall have no
responsibility for all or any portion of such payments.

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         5.00 CAP EXPENSES. CAP will bear its own expenses incurred in regard to
its actions under this agreement.

         6.00 ARBITRATION. The parties hereby agree that any and all claims
(except only for requests for injunctive or other equitable relief) whether
existing now, in the past or in the future as to which the parties or any
affiliates may be adverse parties, and whether arising out of this agreement or
from any other cause, will be resolved by arbitration before the American
Arbitration Association within the City of New York.

         7.00 COVENANT OF FURTHER ASSURANCES. The parties agree to take any
further actions and to execute any further documents which may from time to time
be necessary or appropriate to carry out the purposes of this agreement.

         8.00 PRIOR AGREEMENTS. This agreement constitutes the entire agreement
between the parties and memorializes the prior oral agreement between the
parties and all understandings between the parties pursuant to such oral
agreements are recorded herein. The effective date herein is as of the earliest
date of the oral agreement between the parties.

         9.00 EFFECTIVE DATE. The effective date of this agreement is as of
April 11, 2000.

       IN WITNESS WHEREOF, the parties have approved and executed this
agreement.

BLUE CAPITAL ASSOCIATES, INC.

/s/ Patricia A. Meding
-------------------------------------
   Patricia A. Meding, President

CAPITAL ADVISORY PARTNERS, LLC

/s/ Patricia A. Meding
-------------------------------------
Patricia A. Meding, Managing Member<PAGE>

                         Capital Advisory Partners, LLC
                             50 Broadway, Suite 2300
                            New York, New York 10004

                                                      May 16, 2000

Blue Capital Associates, Inc.
50 Broadway, Suite 2300
New York, NY 10004

         Re: Lock Up Agreement with Blue Capital Associates, Inc.

Gentlemen:

         As part of the sale of the shares of Common Stock of Blue Capital
Associates, Inc. (the "Company") to the undersigned, Capital Advisory Partners,
LLC (the "Holder"), the Holder hereby represents, warrants, covenants and
agrees, for the benefit of the Company and any holders of record (the "third
party beneficiaries") of the Company's outstanding securities, including the
Company's Common Stock, $.0001 par value (the "Stock") at the date hereof and
during the pendency of this letter agreement that the Holder will not transfer,
sell, contract to sell, devise, gift, assign, pledge, hypothecate, distribute or
grant any option to purchase or otherwise dispose of, directly or indirectly,
its shares of Stock of the Company owned beneficially or otherwise by the Holder
except in connection with or following completion of a merger, acquisition or
other transaction by the Company resulting in the Company no longer being
classified as a blank check company as defined in the registration statement of
the Company filed on Form 10-SB.

         Any attempted sale, transfer or other disposition in violation of this
letter agreement shall be null and void.

         The Holder further agrees that the Company (i) may instruct its
transfer agent not to transfer such securities (ii) may provide a copy of this
letter agreement to the Company's transfer agent for the purpose of instructing
the Company's transfer agent to place a legend on the certificate(s) evidencing
the securities subject hereto and disclosing that any transfer, sale, contract
for sale, devise, gift, assignment, pledge or hypothecation of such securities
is subject to the terms of this letter agreement and (iii) may issue
stop-transfer instructions to its transfer agent for the period contemplated by
this letter agreement for such securities.

         This letter agreement shall be binding upon the Holder, its agents,
heirs, successors, assigns and beneficiaries.

         Any waiver by the Company of any of the terms and conditions of this
letter agreement in any instance must be in writing and must be duly executed by
the Company and the Holder and shall not be deemed or construed to be a waiver
of such term or condition for the future, or of any

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subsequent breach thereof.

         The Holder agrees that any breach of this letter agreement will cause
the Company and the third party beneficiaries irreparable damage for which there
is no adequate remedy at law. If there is a reach or threatened breach of this
letter agreement by the Holder, the Holder hereby agrees that the Company and
the third party beneficiaries shall be entitled to the issuance of an immediate
injunction without notice to restrain the breach or threatened breach. The
Holder also agrees that the Company and all third party beneficiaries shall be
entitled to pursue any other remedies for such a breach or threatened breach,
including a claim for money damages.

         Agreed and accepted this 16th day of May, 2000.

                                       Capital Advisory Partners, LLC

                                       By: /s/ Patricia A. Meding
                                           -------------------------------------
                                           Patricia A. Meding, Managing Member

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                                   Finglas LLC
                            2535 Bethany Church Road
                            Alpharetta, Georgia 30004

                                                          May 16, 2000

Blue Capital Associates, Inc.
50 Broadway, Suite 2300
New York, NY 10004

         Re: Lock Up Agreement with Blue Capital Associates, Inc.

Gentlemen:

         As part of the sale of the shares of Common Stock of Blue Capital
Associates, Inc. (the "Company") to the undersigned, Finglas LLC (the "Holder"),
the Holder hereby represents, warrants, covenants and agrees, for the benefit of
the Company and any holders of record (the "third party beneficiaries") of the
Company's outstanding securities, including the Company's Common Stock, $.0001
par value (the "Stock") at the date hereof and during the pendency of this
letter agreement that the Holder will not transfer, sell, contract to sell,
devise, gift, assign, pledge, hypothecate, distribute or grant any option to
purchase or otherwise dispose of, directly or indirectly, its shares of Stock of
the Company owned beneficially or otherwise by the Holder except in connection
with or following completion of a merger, acquisition or other transaction by
the Company resulting in the Company no longer being classified as a blank check
company as defined in the registration statement of the Company filed on Form
10-SB.

         Any attempted sale, transfer or other disposition in violation of this
letter agreement shall be null and void.

         The Holder further agrees that the Company (i) may instruct its
transfer agent not to transfer such securities (ii) may provide a copy of this
letter agreement to the Company's transfer agent for the purpose of instructing
the Company's transfer agent to place a legend on the certificate(s) evidencing
the securities subject hereto and disclosing that any transfer, sale, contract
for sale, devise, gift, assignment, pledge or hypothecation of such securities
is subject to the terms of this letter agreement and (iii) may issue
stop-transfer instructions to its transfer agent for the period contemplated by
this letter agreement for such securities.

         This letter agreement shall be binding upon the Holder, its agents,
heirs, successors, assigns and beneficiaries.

         Any waiver by the Company of any of the terms and conditions of this
letter agreement in any instance must be in writing and must be duly executed by
the Company and the Holder and shall not be deemed or construed to be a waiver
of such term or condition for the future, or of any subsequent breach thereof.

<PAGE>

         The Holder agrees that any breach of this letter agreement will cause
the Company and the third party beneficiaries irreparable damage for which there
is no adequate remedy at law. If there is a reach or threatened breach of this
letter agreement by the Holder, the Holder hereby agrees that the Company and
the third party beneficiaries shall be entitled to the issuance of an immediate
injunction without notice to restrain the breach or threatened breach. The
Holder also agrees that the Company and all third party beneficiaries shall be
entitled to pursue any other remedies for such a breach or threatened breach,
including a claim for money damages.

         Agreed and accepted this 16th day of May, 2000.

                                            Finglas LLC

                                            By: /s/ Irwin Goodman
                                                --------------------------------
                                                Irwin Goodman, Managing Member

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                               Kilkenny Group LLC
                          420 E. 79th Street, Apt. 12-d
                            New York, New York 10021

                                                       May 16, 2000

Blue Capital Associates, Inc.
50 Broadway, Suite 2300
New York, NY 10004

         Re: Lock Up Agreement with Blue Capital Associates, Inc.

Gentlemen:

         As part of the sale of the shares of Common Stock of Blue Capital
Associates, Inc. (the "Company") to the undersigned, Kilkenny Group LLC (the
"Holder"), the Holder hereby represents, warrants, covenants and agrees, for the
benefit of the Company and any holders of record (the "third party
beneficiaries") of the Company's outstanding securities, including the Company's
Common Stock, $.0001 par value (the "Stock") at the date hereof and during the
pendency of this letter agreement that the Holder will not transfer, sell,
contract to sell, devise, gift, assign, pledge, hypothecate, distribute or grant
any option to purchase or otherwise dispose of, directly or indirectly, its
shares of Stock of the Company owned beneficially or otherwise by the Holder
except in connection with or following completion of a merger, acquisition or
other transaction by the Company resulting in the Company no longer being
classified as a blank check company as defined in the registration statement of
the Company filed on Form 10-SB.

         Any attempted sale, transfer or other disposition in violation of this
letter agreement shall be null and void.

         The Holder further agrees that the Company (i) may instruct its
transfer agent not to transfer such securities (ii) may provide a copy of this
letter agreement to the Company's transfer agent for the purpose of instructing
the Company's transfer agent to place a legend on the certificate(s) evidencing
the securities subject hereto and disclosing that any transfer, sale, contract
for sale, devise, gift, assignment, pledge or hypothecation of such securities
is subject to the terms of this letter agreement and (iii) may issue
stop-transfer instructions to its transfer agent for the period contemplated by
this letter agreement for such securities.

         This letter agreement shall be binding upon the Holder, its agents,
heirs, successors, assigns and beneficiaries.

         Any waiver by the Company of any of the terms and conditions of this
letter agreement in any instance must be in writing and must be duly executed by
the Company and the Holder and shall not be deemed or construed to be a waiver
of such term or condition for the future, or of any subsequent breach thereof.

<PAGE>

         The Holder agrees that any breach of this letter agreement will cause
the Company and the third party beneficiaries irreparable damage for which there
is no adequate remedy at law. If there is a reach or threatened breach of this
letter agreement by the Holder, the Holder hereby agrees that the Company and
the third party beneficiaries shall be entitled to the issuance of an immediate
injunction without notice to restrain the breach or threatened breach. The
Holder also agrees that the Company and all third party beneficiaries shall be
entitled to pursue any other remedies for such a breach or threatened breach,
including a claim for money damages.

         Agreed and accepted this 16th day of May, 2000.

                                          Kilkenny Group LLC

                                          By: /s/ Judith Adler
                                              ----------------------------------
                                              Judith Adler, Managing Member

<PAGE>

                                  Monkstown LLC
                           404 Crabapple Springs Court
                            Woodstock, Georgia 30188

                                                          May 16, 2000

Blue Capital Associates, Inc.
50 Broadway, Suite 2300
New York, NY 10004

         Re: Lock Up Agreement with Blue Capital Associates, Inc.

Gentlemen:

         As part of the sale of the shares of Common Stock of Blue Capital
Associates, Inc. (the "Company") to the undersigned, Monkstown LLC (the
"Holder"), the Holder hereby represents, warrants, covenants and agrees, for the
benefit of the Company and any holders of record (the "third party
beneficiaries") of the Company's outstanding securities, including the Company's
Common Stock, $.0001 par value (the "Stock") at the date hereof and during the
pendency of this letter agreement that the Holder will not transfer, sell,
contract to sell, devise, gift, assign, pledge, hypothecate, distribute or grant
any option to purchase or otherwise dispose of, directly or indirectly, its
shares of Stock of the Company owned beneficially or otherwise by the Holder
except in connection with or following completion of a merger, acquisition or
other transaction by the Company resulting in the Company no longer being
classified as a blank check company as defined in the registration statement of
the Company filed on Form 10-SB.

         Any attempted sale, transfer or other disposition in violation of this
letter agreement shall be null and void.

         The Holder further agrees that the Company (i) may instruct its
transfer agent not to transfer such securities (ii) may provide a copy of this
letter agreement to the Company's transfer agent for the purpose of instructing
the Company's transfer agent to place a legend on the certificate(s) evidencing
the securities subject hereto and disclosing that any transfer, sale, contract
for sale, devise, gift, assignment, pledge or hypothecation of such securities
is subject to the terms of this letter agreement and (iii) may issue
stop-transfer instructions to its transfer agent for the period contemplated by
this letter agreement for such securities.

         This letter agreement shall be binding upon the Holder, its agents,
heirs, successors, assigns and beneficiaries.

         Any waiver by the Company of any of the terms and conditions of this
letter agreement in any instance must be in writing and must be duly executed by
the Company and the Holder and shall not be deemed or construed to be a waiver
of such term or condition for the future, or of any subsequent breach thereof.

<PAGE>

         The Holder agrees that any breach of this letter agreement will cause
the Company and the third party beneficiaries irreparable damage for which there
is no adequate remedy at law. If there is a reach or threatened breach of this
letter agreement by the Holder, the Holder hereby agrees that the Company and
the third party beneficiaries shall be entitled to the issuance of an immediate
injunction without notice to restrain the breach or threatened breach. The
Holder also agrees that the Company and all third party beneficiaries shall be
entitled to pursue any other remedies for such a breach or threatened breach,
including a claim for money damages.

         Agreed and accepted this 16th day of May, 2000.

                                            Monkstown LLC

                                            By: /s/ Ben Giacchino
                                                --------------------------------
                                                Ben Giacchino, Managing Member

<PAGE>

                                   Rathgar LLC
                             215 Forest Haven Drive
                          Slingerlands, New York 12159

                                                        May 16, 2000

Blue Capital Associates, Inc.
50 Broadway, Suite 2300
New York, NY 10004

         Re: Lock Up Agreement with Blue Capital Associates, Inc.

Gentlemen:

         As part of the sale of the shares of Common Stock of Blue Capital
Associates, Inc. (the "Company") to the undersigned, Rathgar LLC (the "Holder"),
the Holder hereby represents, warrants, covenants and agrees, for the benefit of
the Company and any holders of record (the "third party beneficiaries") of the
Company's outstanding securities, including the Company's Common Stock, $.0001
par value (the "Stock") at the date hereof and during the pendency of this
letter agreement that the Holder will not transfer, sell, contract to sell,
devise, gift, assign, pledge, hypothecate, distribute or grant any option to
purchase or otherwise dispose of, directly or indirectly, its shares of Stock of
the Company owned beneficially or otherwise by the Holder except in connection
with or following completion of a merger, acquisition or other transaction by
the Company resulting in the Company no longer being classified as a blank check
company as defined in the registration statement of the Company filed on Form
10-SB.

         Any attempted sale, transfer or other disposition in violation of this
letter agreement shall be null and void.

         The Holder further agrees that the Company (i) may instruct its
transfer agent not to transfer such securities (ii) may provide a copy of this
letter agreement to the Company's transfer agent for the purpose of instructing
the Company's transfer agent to place a legend on the certificate(s) evidencing
the securities subject hereto and disclosing that any transfer, sale, contract
for sale, devise, gift, assignment, pledge or hypothecation of such securities
is subject to the terms of this letter agreement and (iii) may issue
stop-transfer instructions to its transfer agent for the period contemplated by
this letter agreement for such securities.

         This letter agreement shall be binding upon the Holder, its agents,
heirs, successors, assigns and beneficiaries.

         Any waiver by the Company of any of the terms and conditions of this
letter agreement in any instance must be in writing and must be duly executed by
the Company and the Holder and shall not be deemed or construed to be a waiver
of such term or condition for the future, or of any subsequent breach thereof.

<PAGE>

         The Holder agrees that any breach of this letter agreement will cause
the Company and the third party beneficiaries irreparable damage for which there
is no adequate remedy at law. If there is a reach or threatened breach of this
letter agreement by the Holder, the Holder hereby agrees that the Company and
the third party beneficiaries shall be entitled to the issuance of an immediate
injunction without notice to restrain the breach or threatened breach. The
Holder also agrees that the Company and all third party beneficiaries shall be
entitled to pursue any other remedies for such a breach or threatened breach,
including a claim for money damages.

         Agreed and accepted this 16th day of May, 2000.

                                         Rathgar LLC

                                         By: /s/ Dr. Stuart Erner
                                             -----------------------------------
                                             Dr. Stuart Erner, Managing Member

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