Document:

EXHIBIT 10.51

                          COLLATERAL SECURITY AGREEMENT
                      (TRADEARK MEMBERSHIP INTEREST PLEDGE)

         WHEREAS,  CAPITOL  DEVELOPMENT OF ARKANSAS,  INC. ("CDA"),  an Arkansas
corporation,   and  CAPITOL  COMMUNITIES   CORPORATION,   a  Nevada  corporation
(hereinafter  referred to as the "Pledgor") has borrowed or has agreed to borrow
from BOCA FIRST CAPITOL,  LLLP, A FLORIDA LIMITED LIABILITY LIMITED  PARTNERSHIP
(hereinafter  referred to as  "Pledgee")  the  principal sum of FOUR MILLION AND
NO/100THS DOLLARS ($4,000,000.00); and

         WHEREAS,  Pledgor  is the  owner of a  35.16%  membership  interest  in
TradeArk Properties, LLC ("TradeArk"), a Michigan limited liability company

         WHEREAS,  the Pledgor has executed a promissory note on April 26, 2002,
and has  agreed to  execute  and to deliver  to the  Pledgee a  promissory  note
modification,  hereinafter referred to as the "Modified Note", for the principal
amount of FOUR MILLION and  NO/100ths  DOLLARS  ($4,000,000.00)  to evidence the
indebtedness arising in connection with the aforesaid loan made or to be made by
Pledgee to Pledgor; and

         WHEREAS,  the Pledgor  became a member of TradeArk and  executed,  as a
member, an operating  agreement for the Company dated May 27, 1999.  Pledgor has
agreed to  pledge to  Pledgee  CDA's  35.16%  membership  interest  in  TradeArk
(hereinafter  referred to as "TradeArk  Interest")  as security for the Modified
Note;

         NOW,  THEREFORE,  in consideration of the premises and as an inducement
to the Pledgee to lend the  principal  sum of FOUR  MILLION and NO/100s  DOLLARS
($4,000,000.00) to Pledgor and in consideration thereof, the Pledgor does hereby
assign,  transfer,  set over and pledge to Pledgee the TradeArk Interest and the
Pledgee and the Pledgor hereby agree as follows:

         1.   Purpose of Pledge.  This Pledge is made as collateral security for
the repayment,  according to its terms,  of the full amount of the Modified Note
including interest thereon.

         2.   Possession of the Pledged TradeArk Interest.  Pledgor shall assign
and  transfer  the  TradeArk  Interest  immediately  upon the  execution of this
Pledge,  and deliver to the escrow  agent named in the Modified  Note,  free and
clear of all liens and  encumbrances  and assigned to Pledgee.  Pledgee shall be
entitled to receive and have  delivered  to it, any  payments,  disbursed by the
TradeArk  Interest,  with any such payments made hereunder  applied first to the
interest  accruing upon the terms of the Note and Business Loan  Agreement,  and
any amendments thereof, next to charges,  costs, or expenses then due under this
Security  Agreement  or any other loan  documents  and the  balance,  if any, to
principal. Notwithstanding,  Pledgee agrees that Pledgor may sell and assign its
TradeArk  Interest and substitute other collateral equal to such interest,  upon
the approval of Pledgee, which shall not be unreasonably withheld.

<PAGE>

         3.   Event of Default and Remedies.  If any one of the following events
(herein called "Event of Default") shall occur and be continuing:

              (a) If the Pledgor defaults in the  payment of any  installment of
the Note when the same shall have become due,  either by the terms  thereof,  or
otherwise, as herein provided and such default continues beyond any grace period
provided in the Note; or

              (b) If the Pledgor becomes in  default  under the  loan  agreement
governing the loan represented by the Note; or

              (c) If the Corporation or the Pledgor become in default  under any
mortgage, security agreement or other document or instrument given to provide or
create collateral security for the Note;

              then the Pledged TradeArk Interest,  which shall  at the  time  of
receipt thereof be applied to payment of the Note, may be sold,  transferred and
delivered  in whole or in part,  together  with  any  substitutes  therefor,  or
additions  thereto,  at any public or private sale, for cash,  upon credit,  for
present or future  delivery,  all at the option of Pledgee  upon  Pledgee's  (i)
declaring the Modified Note due and payable under the terms hereof, or declaring
other liability mentioned or referred to in this Pledge as being outstanding and
overdue, and (ii) giving not less than ten (10) days written notice of such sale
to Pledgor by personal delivery, or registered or certified mail, return receipt
requested,  addressed  to their last known  address.  All rights and remedies of
Pledgee upon an Event of Default,  including  any sale,  transfer or delivery of
the Pledged TradeArk Interest, shall occur in Palm Beach County, Florida.

         5.    Notice of Default.  The Pledgee shall deliver to Pledgor promptly
upon  the  occurrence  of any  Event  of  Default,  a  written  notice  thereof,
specifying the nature thereof but failure to promptly  deliver such notice shall
not constitute a waiver of any rights of Pledgee under this Agreement. A written
notice from  Pledgee to any  nominee  that an Event of Default  exists  shall be
sufficient evidence of that fact to such nominee.

         6.   Sale  of  Pledged  TradeArk Interest  by  Pledgee.  Any  sale,  as
provided herein,  of the TradeArk  Interest by Pledgee,  or its nominee,  may be
adjourned from time to time, if a public sale, by  announcement  at the time and
place appointed for any such sale, and without further notice,  such sale may be
made at the time  and  place to which  the same  shall be so  adjourned,  unless
otherwise provided by law. At such sale, Pledgee, or its nominee, shall be under
no duty to sell all of the  Pledged  TradeArk  Interest on the date fixed in the
notice, but beginning on such date, Pledgee,  or its nominee,  may sell the same
from day to day  until  all,  or a  portion  thereof,  have been sold to pay all
amounts  secured  by this  Pledge.  At any  such  sale,  Pledgee,  or any of its
employees  or  assigns,  as the  case  may be or its  nominee,  may  become  the
purchaser of the whole, or any part, of the Pledged TradeArk Interest, free from
any  trust,  claim,  right or equity of  redemption  of the  Pledgor,  which are
expressly  waived and  released.  In case of any sale on  credit,  or for future
delivery,  the Pledged TradeArk Interest sold may be retained by the Pledgee, or
its nominee,  until the selling price is paid by the purchaser,  but neither the
Pledgee,  nor its nominee,  shall incur any  liability in case of failure of the
purchaser to take up and pay for the Pledged TradeArk Interest so sold. Upon the
sale of any TradeArk Interest hereunder,  after deducting all costs and expenses
of collection,  Pledgee, or its nominee, shall apply the residue of the proceeds
of the sale, or sales, so made first to the payment of any sums Pledgee may pay,

                                       2
                         Collateral Security Agreement
<PAGE>

or incur, in enforcing its rights under the Note and/or this Pledge,  and second
to the payment of any sums the Pledgor may be, or become liable to pay under any
of those  instruments,  and shall pay the  excess,  if any, to the  Pledgor.  No
purchaser at such sale, or sales, except the Pledgee,  or its nominee,  shall be
responsible for the application of the purchase money.

         7.   Waiver.  The Pledgor  agrees  that neither  the  Pledgee,  nor its
nominee,  shall be held liable for loss or damage  resulting from acts or events
beyond the reasonable  control of the Pledgee,  or its nominee,  and acts of the
Pledgee  taken in good  faith.  In taking,  or  refraining  from  taking  action
required,  or permitted,  hereunder,  such nominee shall follow the direction of
Pledgee,  if given, and Pledgor agrees that such nominee shall not be liable for
any action or omission taken  hereunder in good faith  pursuant to  instructions
from Pledgee.

         8.   Release of Pledged TradeArk Interest.  The  Pledgee  shall release
the Pledged  TradeArk  Interest to the Pledgor when the Modified Note shall have
been paid in full;  provided,  however,  that if at such time there shall be due
from Pledgor under this Pledge  additional  charges which theretofore arose as a
result of the default under any of the aforesaid  instruments then Pledgee shall
not release the Pledged  TradeArk  Interest to the Pledgor until such additional
charges  shall  have been paid in full;  and the  Pledgee  shall  deliver to the
Pledgor the  TradeArk  Interest  pledged  under this  Pledge and  Pledgee  shall
execute and deliver, or cause to be executed and delivered,  to the Pledgor such
instruments  as may be necessary  to cancel this Pledge,  and revest the Pledged
TradeArk   Interest  in  the  Pledgor   free  and  clear  of  the  lien  hereof.
Notwithstanding,  Pledgor  may  substitute  other  collateral  for  the  pledged
TradeArk Interest, pursuant to Section 2 of the Security Agreement.

         9.   Notices.  All  communications   provided  for  hereunder shall  be
addressed to Capitol Communities  Corporation 900 N. Federal Highway, Suite 410,
Boca Raton,  Florida 33432, if to Capitol  Development of Arkansas,  Inc., 10605
Maumelle  Blvd.,  Maumelle,  Arkansas 72113 the Pledgor at and to the Pledgee at
900 North  Federal  Highway,  Suite 410,  Boca Raton,  FL 33432 or to such other
address  with respect to any of the parties as such party shall notify the other
in writing.

         10.  Applicable  Law. This Agreement shall be construed and enforced in
accordance with the laws of the State of Florida.

         11.  Successors and Assigns, etc.  All of the covenants and  provisions
in this Pledge by, or for the benefit of, the Pledgee and the Pledgor shall bind
and inure to the  benefit  of their  respective  successors,  heirs,  executors,
administrators and assigns.

         12.  Additional Security. This Pledge is without prejudice to the right
of Pledgee to enforce collection of the Modified Note due and payable,  by suit,
or in any lawful manner,  or resort to any other security for the payment of the
said Note, this Pledge being additional, cumulative, and concurrent security for
the payment of the said Note. The enumeration of certain rights,  privileges and
options in this Pledge as vested in Pledgee and its successors  and assigns,  is
not and shall not be  construed  as a waiver  of, nor to impair in any way other
rights of Pledgee and its  successors  or  assigns,  either at law or in equity,
independent  of this  instrument,  concerning  this, or any of the  liabilities,
obligations, indebtedness, or collateral security involved in the said Note.

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                         Collateral Security Agreement
<PAGE>

         13.  Business Loan  Agreement. This Pledge is subject to the provisions
of Exhibit A of that certain  Business Loan Agreement  dated the date hereof and
entered  into  by and  between  Pledgor  and  Pledgee,  and any  amendments  and
modifications thereof.

         14.  Representation  and  Warranty of Pledgor.  Pledgor  represent  and
warrant that Pledgor owns and holds the TradeArk Interest, free and clear of any
lien or encumbrances and such TradeArk Interest are being pledged hereunder.

         IN WITNESS WHEREOF, the Pledgor has executed and delivered this Pledge,
this 27th day of September, 2002.

   In the presence of:                    PLEDGOR:
                                          CAPITOL COMMUNITIES CORPORATION
   /s/ Ray Baptista                       /s/ Michael G. Todd
   ----------------                       ------------------------------
       Ray Baptista                       By: Michael G. Todd, President

   In the presence of:                    PLEDGOR:
                                          CAPITOL DEVELOPMENT OF ARKANSAS, INC.

   /s/ Ashley Bloom                       /s/ Michael G. Todd
   ----------------                       ------------------------------
       Ashley Bloom                       By:  Michael G. Todd, President

                                          PLEDGEE:
                                          BOCA FIRST CAPITOL LLLP
                                          By Addison Capital Group LLC,
                                          general partner

/s/ Ashley Bloom
----------------
    Ashley Bloom                          /s/ Howard Bloom
                                          ------------------------------
                                          Howard Bloom,  Manager
/s/ E. Brandon-Brown
--------------------
    E. Brandon-Brown

                               Notary on Next Page

                                       4
                         Collateral Security Agreement
<PAGE>

State of Florida
         -------
County of Palm Beach
          ----------

         The foregoing  instrument  was  acknowledged  before me this 27h day of
September 2002 by MICHAEL G. TODD, PRESIDENT OF CAPITOL COMMUNITIES CORPORATION,
A  NEVADA  CORPORATION,  who is  personally  known  to me,  or who has  produced
______________________ as identification.

                                     /s/Ruth Gregory
                                     (Signature of Person Taking Acknowledgment)
                                      Ruth Gregory
                                      ------------
                                     (Name of Acknowledger Typed, Printed or
                                      Stamped)
                                     (Title or Rank)
                                     (Serial Number, if any)

State of Florida
         -------
County of Palm Beach
          ----------

         The foregoing  instrument  was  acknowledged  before me this 27h day of
September,  2002,  by MICHAEL  G. TODD,  PRESIDENT  OF  CAPITOL  DEVELOPMENT  OF
ARKANSAS,  INC., AN ARKANSAS CORPORATION,  who is personally known to me, or who
has produced ______________________ as identification.

                                    /s/ Ruth Gregory
                                    ----------------
                                    (Signature of Person Taking Acknowledgment)
                                    Ruth Gregory
                                    ---------------------------------------
                                    (Name of Acknowledger Typed, Printed or
                                     Stamped)
                                    (Title or Rank)
                                    (Serial Number, if any)

                                       5
                         Collateral security agreementEXHIBIT 10.52

********************************************************************************
                                    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 13 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

                                    MORTGAGE
                               PAGE 2 OF 13 PAGES

<PAGE>

         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 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 or  negligence  of the  Mortgagor

                                    MORTGAGE
                               PAGE 3 OF 13 PAGES

<PAGE>

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 13 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 13 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

                                    MORTGAGE
                               PAGE 6 OF 13 PAGES

<PAGE>

rights of  redemption  conferred  by the Act passed by the  General  Assembly of
Arkansas on May 8, 1899, and acts amendatory thereof.

         (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

                                    MORTGAGE
                               PAGE 7 OF 13 PAGES

<PAGE>

commencement of such action and 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 all federal, state and local
environmental,  health, and safety laws, codes and ordinances, and all rules and

                                    MORTGAGE
                               PAGE 8 OF 13 PAGES

<PAGE>

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  fine or  penalty  assessed  in  connection
therewith;  permit Mortgagee to inspect the premises,  to conduct tests thereon,
and to inspect all books,  correspondence and records pertaining thereto; and at
Mortgagee's request, and at Mortgagor's expense, provide a report of a qualified

                                    MORTGAGE
                               PAGE 9 OF 13 PAGES

<PAGE>

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
                                    Title: President

                                    MORTGAGE
                               PAGE 10 OF 13 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 27th day of September, 2002.

                                                Ruth Gregory
                                                ------------
                                                NOTARY PUBLIC

                                    MORTGAGE
                               PAGE 11 OF 13 PAGES

<PAGE>

                                    SCHEDULE A

         Parcel 11

         Lands lying in a  fractional  part of Section 29 and a part of the East
         1/2  section of 30, and a part of Section 32 and a part of the East 1/2
         Section of 31, and a part of the  Southwest  1/4 of Section  31, 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  355.04  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 of the North right of
         way line of odom  Boulevard;  thence  along the said North right of way
         line along a 05  degrees 2 minutes 11 seconds  curve to the right and s
         distance of 221.86  feet to a point to which  there is a chord  bearing
         the  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  section 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  degree  33  minutes  21
         seconds  curve to the left of a distance  of 353.13  feet to a point to
         which  there is a chord  bearing  the  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 distance: South 82 degrees 31 minutes 09 seconds
         East 57.69 feet;  thence  along a 05 degrees 40 minutes 21 second curve
         to the right a distance  of 361.43  feet to a point to which there is a
         chord  bearing  the  distance of South 27 degrees 29 minutes 52 seconds
         East 359.50  feet;  thence  South 17 degrees 14 minutes 48 seconds East
         251.54 feet;  thence along a 06 degrees 02 minutes 33 seconds  curve to
         the left a  distance  of  504.12  to a point  to  which  there is chord
         bearing  the  distance  of South 32 degrees 28 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

                                    MORTGAGE
                               PAGE 12 OF 13 PAGES

<PAGE>

         bearing the distance South 36 degrees 33 minutes 51 seconds East 380.60
         feet;  thence South 17 degrees 26 minutes 39 seconds West 36.65 feet to
         a point  on the  West  right of way  line of  Hillwood  Circle;  thence
         leaving the said West right of way line of Naylor Drive and  continuing
         along

         the said West right of way line of Hillwood  circle along the following
         bearings and distances:  along a 05 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 distance  South 16 degrees 58 minutes 23 seconds West
         1,358.84  feet;  thence  South 25 degrees  38  minutes 53 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  384.55  feet to a point  on  North  boundary  line  of  phase  II
         Edgewater  Addition to the City of  Maumelle;  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: thence North 73 degrees 03 minutes 03 seconds
         West 1,097.68 feet;  thence South 33 degrees 18 minutes 58 seconds West
         254.89 feet;  thence South 45 degrees 41 minutes 45 seconds West 349.34
         feet;  thence  South 58 degrees 48 minutes 54 seconds West 399.77 feet;
         thence  North 77 degrees 28 minutes 15 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 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 412.97  feet;
         thence South 26 degrees 57 minutes 31 seconds West 559.97 feet;  thence
         South 80 degrees 35 minutes West 1359.32 feet;  thence North 01 degrees
         31 minutes 10 seconds East,  2,665.85 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
         35 seconds  East,  462.49  feet;  thence South 88 degrees 39 minutes 40
         seconds East 1324.988 feet to the point of beginning.

                                END OF SCHEDULE A

                                    MORTGAGE
                               PAGE 13 OF 13 PAGES

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