Document:

NOTE
                                      ----

$300,000.00                                                   September 15, 2004
                                                                Sunrise, Florida

         FOR VALUE RECEIVED, the undersigned promises to pay TRANSCAPITAL BANK,
a Florida banking corporation, on order, the principal sum of THREE HUNDRED
THOUSAND AND NO/XX ($300,000.00) DOLLARS, with interest on the unpaid principal
balance from the date of this Note, until paid, at the rate of EIGHT (8.0%)
percent per annum.

         The Principal and interest shall be payable at 2100 E. Hallandale Beach
Boulevard, Hallandale, Florida 33009, of such other place as the holder hereof
may designate in writing, and shall be payable as follows:

         Interest only on the outstanding Principal balance shall be due and
         payable monthly, with the first such payment commencing on the 15th day
         of October, 2004 and continuing monthly thereafter until the day of
         15th day of September, 2007, at which time the entire Principal balance
         plus accrued interest, if any, shall be due and payable in full.

         If any installment under this Note is not paid when due (after
applicable grace periods), the entire principal amount outstanding hereunder and
accrued interest thereon shall at once become due and payable at the option of
the holder hereof. Failure to exercise such option shall not constitute a waiver
of the right to exercise such option of the undersigned if in default hereunder.
In the event of any default in the payment of this Note and if suit is brought
hereon, the holder hereof shall be entitled to collect in such proceedings all
reasonable costs and expenses of suit, including but not limited to reasonable
attorneys' fees.

         AFTER ACCELERATION AND/OR MATURITY, INTEREST SHALL ACCRUE ON THE
OUTSTANDING PRINCIPAL BALANCE AT THE HIGHEST LAWFUL RATE OF INTEREST ALLOWED.

         The undersigned shall pay to the holder hereof a late charge of five
(5%) percent of any monthly installment not received by the holder hereof within
fifteen (15) days after the installment is due.

         Presentment, notice of dishonor and protest are waived by all makers,
sureties, guarantors and endorsers hereof. This Note shall be the joint and
several obligations of all makers, sureties, guarantors and endorsers, and shall
be binding upon them and their heirs, personal representatives, successors and
assigns.

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         This Note may be prepaid, in whole or in part, at any time without
penalty.

         The indebtedness evidenced by this Note is secured by a Mortgage, dated
of even date herewith, and reference is made thereof for rights as to
acceleration of the indebtedness evidenced by this Note.

                                        CAPITOL DEVELOPMENT, INC.,
                                          a Nevada Corporation

                                        By: /s/ ASHLEY BLOOM
                                            -------------------------------
                                            ASHLEY BLOOM, President

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PREPARED BY AND TO
BE RETURNED TO:
 LEONARD E. ZEDECK, ESQUIRE
 13790 N.W. 4TH STREET, SUITE 113
 SUNRISE, FL 33325

                        MORTGAGE AND SECURITY AGREEMENT
                        -------------------------------

         THIS MORTGAGE INDENTURE, executed this 15th day of September, 2004, by
and between CAPITOL DEVELOPMENT, INC., a Nevada Corporation, hereinafter called
the "Mortgagor", which term as used in every instance shall include the
Mortgagor's heirs, executors, administrators, successors, legal representatives
and assigns, either voluntary by act of the parties or involuntary by operation
of law and shall denote the singular and/or plural, the masculine and/or
feminine and natural and/or artificial persons, whenever and wherever the
context so requires or admits, and TRANSCAPITAL, BANK, a Florida banking
corporation hereinafter called the "Mortgagee", which term as used in every
instance shall include the Mortgagee's successors, legal representatives and
assigns, including all subsequent assignees, either voluntary or by act of the
parties or involuntary by operation of law.

                             W I T N E S S E T H :

         THAT for diverse good and valuable consideration and to secure the
payment of the aggregate sum of money named in the Promissory Note(s) of even
date herewith, hereinafter mentioned, together with interest thereon or so much
thereof as may be advanced, and all other sums of money secured hereby as
hereinafter provided, the Mortgagor does grant, bargain, sell, alien, remise,
release, convey and confirm unto the Mortgagee, in fee simple, the following
described real estate of which the Mortgagor is now seized and possessed, and in
actual possession situate in the County of Lee, State of Florida, legally
described as follows:

               "SEE LEGAL DESCRIPTION ON EXHIBIT ATTACHED HERETO
                            AND MADE A PART HEREOF"

                           THIS IS A FIRST MORTGAGE.

         TOGETHER WITH the following property and rights (the "Premises",
together with such property and rights, being hereinafter collectively called
"Mortgaged Property" or "Property"):

         (a) All right, title and interest of Mortgagor in and to the land lying
in the bed of any street, road or avenue, opened or proposed, in front of or
adjoining the Premises, and in and to the appurtenances thereto;

         (b) All machinery, apparatus, equipment, fittings, fixtures and
articles of personal property of every kind and nature whatsoever now or
hereafter located in any building or upon the Premises, or any part thereof, and
used or usable in connection with any present or future occupancy of said
building and now owned or hereafter acquired by Mortgagor; and;

         (c) Any and all awards of payments, including interest thereon, and the
right to receive the same, which may be made with respect to the Premises as a
result of the exercise of the

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right of eminent domain, the alteration of the grade of any street, any other
injury to, or decrease in the value of, the Premises, or proceeds of insurance
awards, to the extent of all amounts which may be secured by this Mortgage at
the date of receipt of any such award or payment by Mortgagee, and of the
reasonable attorneys' fees, costs and disbursements incurred by Mortgagee in
connection with the collection of such award or payment and Mortgagor agrees to
execute and deliver, from time to time, such further instruments as may be
requested by Mortgagee to confirm such assignment to Mortgagee of any such award
or payment.

         TO HAVE AND TO HOLD the above described property unto the Mortgagee,
its successors and assigns forever.

         The Mortgagor hereby covenants with the Mortgagee that the Mortgagor is
indefeasibly seized with the absolute and fee simple title to said property, and
has full

power and lawful authority to sell, convey, transfer and mortgage the same; that
it shall be lawful at any time hereafter for the Mortgagee to peaceably and
quietly enter upon, have, hold and enjoy said property, and every part thereof,
that this Mortgage is and will remain a valid and enforceable lien on the
Mortgaged Property; that said property is free and discharged from all liens,
encumbrances and claims of any kind, except for those matters shown on Exhibit
"B" attached hereto and made a part hereof, including taxes and assessments; and
that the Mortgagor hereby fully warrants unto the Mortgagee the title to said
property and will defend the same against the lawful claims and demands of all
personal whomsoever.

         NOW, THEREFORE, the condition of this Mortgage is such that if the
Mortgagor shall well and truly pay unto the Mortgagee the indebtedness evidenced
by that certain Promissory Note of even date herewith, made by the Mortgagor and
payable to the Mortgagee in the principal sum of THREE HUNDRED THOUSAND AND
NO/XX ($300,000) DOLLARS (hereinafter referred to as "Note" or "Mortgage Note"),
together with interest as set forth therein, and shall perform, comply with and
abide by each and every of the stipulations, agreements, conditions and
covenants contained and set forth in this Mortgage and in the Promissory Note(s)
secured hereby, then this Mortgage and the estate hereby created shall cease and
be null and void.

         AND the Mortgagor does hereby covenant and agree;

         1.   To perform, comply with and abide by each and every one of the
stipulations, agreements, conditions and covenants contained and set forth on
said Promissory Note(s) and this Mortgage Deed.

         2.   To permit, commit or suffer no waste; to comply with or cause to
be complied with, all statutes, ordinances and requirements of any governmental
or other authority relating to the Mortgaged Property; and to do or permit to be
done to said Premises nothing that will alter or change the use and character of
said property or in any way impair or weaken the security of this Mortgage, and
in case of the refusal, neglect or inability of the Mortgagor to repair and
maintain said property, the Mortgagee may, at its option, make such repairs or
cause the same to be made and advance monies in that behalf.

         3.   That Mortgagor will promptly pay and discharge any and all license
fees or similar charges, together with any penalties and interest thereon, which
may be imposed by the

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jurisdiction in which the Premises are situated for the use of vaults, chutes,
areas and other space beyond the lot line and under or abutting the public
sidewalks in front of or adjoining the Premises; that Mortgagor will promptly
cure any violation of law and comply with any order of said jurisdiction in
respect of the adjoining Premises; that if Mortgagor shall default in making
such payment and obtaining such discharge or in curing any such violation,
Mortgagee may make such payment, together with penalties and interest thereon,
and obtain such discharge and cure any such violation, and the amount of such
payment and the expenses incurred by Mortgagee in obtaining such discharge and
curing any violation shall thereupon be secured by this Mortgage and become a
lien on the Mortgage Property; and that Mortgagor will repay the amount of such
payment and such expenses to Mortgagee, together with interest thereon at the
delinquent Mortgage Note(s) rate, within fifteen (15) days after demand for said
payment is made by Mortgagee to Mortgagor.

         4.   Notwithstanding any taking of any of the Premises by eminent
domain, alteration of the grade of any street or other injury to, or decrease in
value of, the Premises by any public or quasi-public authority or corporation,
Mortgagor shall continue to pay principal and interest on the Secured
indebtedness, and any reduction in the Secured indebtedness resulting from the
application by Mortgagee of any award or payment for such taking, alterations,
injury or decrease in value of the Premises, as hereinafter set forth, shall be
deemed to take effect only on the date of such receipt. Such award or payment
shall be paid to Mortgagee and applied by Mortgagee toward payment of the
Secured indebtedness; or at Mortgagee's option, such award or payment shall be
paid over, wholly or in part, to Mortgagor for the purpose of altering,
restoring or rebuilding any part of the Premises which may have been altered,
damaged or destroyed as a result of any such taking, alteration of grade, or
other injury to the Premises; or for any other purpose of object satisfactory to
Mortgagee, but Mortgagee shall not be obligated to see the application of any
amount paid over to Mortgagor. If, prior to the receipt by Mortgagee of such
award or payment, the Premises shall have been sold on foreclosure of this
Mortgage, Mortgagee shall have the right to receive such award or payment to the
extent of any deficiency found to be due upon such sale, with legal interest
thereon, whether or not a deficiency judgment on this Mortgage shall have been
sought or recovered or denied, and of the reasonable attorneys' fees, costs and
disbursements incurred by Mortgagee in connection with the collection of such
award or payment. Mortgagor, immediately upon obtaining knowledge of the
institution, or the proposed, contemplated or threatened institution, of any
proceedings for the taking of the Premises, or any part thereof, by condemnation
or eminent domain, will notify Mortgagee of the pendency of such proceedings.
Mortgagee shall have the right to intervene and participate in any proceedings
for and in connection with any taking referred to in this paragraph and from
time to time shall deliver to Mortgagee all instruments requested by Mortgagee
to permit such participation; provided, however, that if such intervention shall
not be permissible or permitted by the court having jurisdiction thereof, the
Mortgagor, shall, at its expense, consult with the Mortgagee, its attorneys and
experts and make all reasonable efforts to cooperate with them in any defense of
such proceedings. The Mortgagor shall not enter into any agreement for the
taking of the Premises or any part thereof with any person or persons authorized
to acquire the same by condemnation or eminent domain, unless the Mortgagee
shall have consented thereto in writing.

         5.   The Mortgagor will, at the cost of the Mortgagor and without
expense to the Mortgagee, do, execute, acknowledge and deliver all and every
such further acts, deeds, conveyances, mortgages, assigns, notices of
assignments, transfers and assurances as the Mortgagee shall from time to time
reasonably require, for the better assuring convening, assigning, transferring
and confirming unto the Mortgagee the property and rights hereby conveyed or
assigned or intended now or hereafter so to be, or which the Mortgagor may be or

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may hereafter become bound to convey or assign to the Mortgagee, or for carrying
out the intention of facilitating the performance of the terms of this Mortgage
or for filing, registering or recording this Mortgage and on demand will execute
and deliver, and hereby authorizes the Mortgagee to execute in the name of the
Mortgagor to the extent it may lawfully do so, one or more financing statements,
chattel mortgages or comparable security instruments, to evidence more
effectively the lien hereof upon the mixed or personal property.

         6.   (a)     The Mortgagor forthwith upon the execution and delivery of
this Mortgage and thereafter, from time to time, will cause this Mortgage and
any security instrument creating a lien or evidencing the lien hereof upon the
mixed or personal property and each instrument of further assurance to be filed,
registered or recorded in such manner and in such places as may be required by
any present or future law in order to publish notice of and fully protect the
lien hereof upon the mixed or personal property and each instrument of further
assurance to be filed, registered or recorded in such manner and in such places
as may be required by any present or future law in order to publish notice of
and fully protect the lien here of upon, and interest of the Mortgagee in, the
Mortgaged Property.

              (b)     The Mortgagor will pay all fling, registration or
recording fees and all expenses incident to the preparation, execution and
acknowledgement of this Mortgage, any mortgage supplemental hereto, any security
instrument with respect to the chattels, and any instrument of further
assurance, and all federal, state, county and municipal stamp taxes, duties,
imports, assessments and charges arising out of or in connection with the
execution and delivery of the Note(s), this Mortgage, any mortgage supplemental
hereto, any security instrument with respect to the chattels or any instrument
of further assurance.

         7.   If the Mortgagor is a corporation, the execution and delivery of
this Mortgage has been duly authorized by the Board of Directors of such
corporation; and that, if required by the Certificate of incorporation of such
corporation, the execution and delivery of this Mortgage has been duly consented
to by the stockholders of such corporation. The Mortgagor will do all things
necessary to preserve and keep in full force and effect its existence,
franchises, rights and privileges as business or stock corporation under the
laws of the State of incorporation and will comply with all regulations, rules,
ordinances, statutes, orders and decrees of any governmental authority or court
applicable to the Mortgagor or the Mortgaged Property or any part thereof.

         8.   The Mortgagor, from time to time, when the same shall become due
and/or payable, will pay and discharge all taxes of every kind and nature
(including real and personal property taxes), all general and special
assessments, levies, permits, inspection and license fees, all water and sewer
rents and charges, and all other public charges whether of a like or different
nature, imposed upon or assessed against it or the Mortgaged Property or any
part thereof or upon the revenues, rents, issues, income and profits of the
Mortgaged Property or arising in respect of the occupancy, use or possession
thereof. The Mortgagor will upon the request of the Mortgagee deliver to the
Mortgagee receipts evidencing the payment of all such taxes, assessments,
levies, fees, rents and other public charges imposed upon or assessed against it
or the Mortgaged Property or the revenues, rents, issues, income or profits
thereof.

         9.   The Mortgagor will pay from time to time when the same shall
become due, all claims and demands of mechanics, materialmen, laborers, and
others which, if unpaid, might result in or permit the creation of a lien on the
Mortgaged Property, whether paramount or subordinate to this Mortgage, or any
part thereof, or on the revenues, rents, issues, income and profits arising
therefrom and in general will do or cause to be done everything necessary so
that the lien of this Mortgage shall be preserved, at the cost of the Mortgagor,
without expense to the Mortgagee.

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         10.  That the Mortgagor will keep all real, mixed and personal property
now or hereafter encumbered by the lien of this Mortgage insured, as may be
required from time to time by the Mortgagee, against loss by fire, windstorm,
flood and other hazards, casualties and contingencies and war risks, if
available, and for not less than their full insurable value of such amounts as
may be required by the Mortgagee and to pay promptly when due all premiums for
such insurance. The amounts of insurance required by Mortgagee shall be the
minimum amounts for which said insurance shall be written and it shall be
incumbent upon the Mortgagor to maintain such additional insurance as may be
necessary to meet and comply fully with all co-insurance requirements contained
in said policies to the end that said Mortgagor is not a co-insurer thereunder.
Insurance shall be written by a company or companies approved by the Mortgagee
and all policies and renewals thereof shall be held by the Mortgagee. All
detailed designations by the Mortgagor which are accepted by the Mortgagee
relating to insurance, now existing or hereafter made, shall be in writing and
shall be a part of this Mortgage Agreement as fully as though set forth verbatim
herein, and shall govern both parties hereto and their successors and assigns.
No lien upon any of said policies of insurance or upon refund or return premium
which may be payable on the cancellation or termination thereof shall be given
to other than the Mortgagee, except by proper endorsement affixed to such policy
and approved by the Mortgagee. Each policy of insurance shall contain a clause
stating that without contribution all loss or losses under such policy shall be
payable to the Mortgagee as its interest may appear. In the event any sum or
sums of money become payable thereunder, the Mortgagee shall have the option to
receive and apply the same on account of the indebtedness hereby secured, or to
permit the Mortgagor to receive it and use it, or any part hereof, without
thereby waiving or impairing any equity, lien or right under and by virtue of
this Mortgage. In the event of loss or physical damage to the Mortgaged
Property, the Mortgagor shall give immediate notice thereof by mail to the
Mortgagee, and the Mortgagee may make proof of loss if the same is not made
promptly by Mortgagor. In the event of foreclosure of this Mortgage or other
transfer of title to the Mortgaged Property in extinguishment of the
indebtedness secured hereby, all right, title and interest of the Mortgagor in
and to any insurance policies then in force, or proceeds resulting form damages
to the property prior to acquisition, shall pass to the Mortgagee or the
Purchaser.

         11.  Mortgagee shall have the right to mature the indebtedness and
foreclose this Mortgage if without the prior written consent of the Mortgagee:
(a) the Premises, or any portion thereof, shall in any manner by transferred, or
(b) in the event of a corporate Mortgagor, trust or partnership arrangement, any
stock, beneficial interest, or partnership interest shall be transferred in a
manner which would result in a change in control of the Mortgagor, or (c) if any
such stock, beneficial interest, or partnership interest be assigned, pledged,
hypothecated, mortgaged or encumbered, or (d) if any such corporate Mortgagor,
trust or partnership arrangement be dissolved or terminated by operation of law
or voluntarily.

         12.  The Mortgagee may, at its option and without waiving of its right
to accelerate the indebtedness hereby secured and to foreclose the same, pay
either before or after delinquency any or all of those certain obligations
required by the terms hereof to be paid by the Mortgagor for the protection of
the Mortgage securing or for the collection of the indebtedness hereby secured.
All sums so advanced or paid by the Mortgagee shall be charged into the Mortgage
account and every payment so made shall bear interest from the date thereof at
the delinquent rate specified in said Mortgage Note(s) and become an integral
part thereof, subject in all respects to the terms, conditions and covenants of
the aforesaid Promissory Note(s) and this Mortgage, as fully and to the same
extent as though a part of the original indebtedness evidenced by said Note(s)
and secured by this Mortgage.

         13.  To pay all and singular the costs, charges, expenses and abstract
costs, reasonably incurred or paid at any time by the Mortgagee because of the
failure of the

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Mortgagor to perform, comply with and abide by each and every stipulation,
agreement, condition and covenant of said Promissory Note(s) and of this
Mortgage, or either. Upon the occurrence of any Event of Default, Mortgagor
shall pay to Mortgagee all reasonable attorney's fees incurred by Mortgagee, and
such fees shall be immediately due and payable, shall be secured by the lien of
this Mortgage and shall draw interest at the Maximum contract rate of interest
allowed by law until paid. As used in this Mortgage and all Documents,
attorney's fees shall include, but not be limited to, fees incurred in all
matters of collection and enforcement, construction and interpretation, before,
during and after suit, trial, proceedings and appeals, as well as appearances in
and connected with bankruptcy proceedings, or creditors' reorganization or
arrangement proceedings.

         14.  That in order to accelerate the maturity of the indebtedness
hereby secured because of the failure of the Mortgagor to pay any tax
assessment, liability, obligation or encumbrance upon said property as herein
provided, it shall not be necessary nor requisite that the Mortgagee shall first
pay the same.

         15.  That any failure by Mortgagee to insist upon the strict
performance by Mortgagor of any of the terms and provisions hereof shall not be
deemed to be a waiver of any of the terms and provisions hereof, and Mortgagee,
notwithstanding any such failure, shall have the right thereafter to insist upon
the strict performance by Mortgagor of any and all of the terms and provisions
of this Mortgage to be performed by Mortgagor or any other person now or
hereafter obligated for the payment of the whole or any part of the sums now or
hereafter secured by this Mortgage. Mortgagee may otherwise enforce any of the
provisions of this Mortgage or of any obligations secured by this Mortgage, or
by reasons of the release, regardless of consideration, of the whole or any part
of the security held for the indebtedness secured by this Mortgage, without
first having obtained the written consent of Mortgagor or such other person, and
in the last mentioned event, Mortgagor and all such other persons shall continue
to be liable to make such payments according to the terms of any such agreement
of extension or modification unless expressly released and discharged in writing
by Mortgagee. Mortgagee may release, regardless of consideration, any part of
the security held for the indebtedness secured by this Mortgage without, as to
the remainder of the security, in any way impairing or affecting the lien of
this Mortgage or the priority of such lien over any subordinate lien, and that
the Mortgagee may resort, for the payment of the indebtedness secured by this
Mortgage, to any other security therefor held by the Mortgagee in such order and
manner as Mortgagee may elect.

         16.  That if the Mortgagor shall fail, neglect or refuse for a period
of fifteen (15) days to fully and promptly pay the amounts required to be paid
by the Note(s) hereby secured or the interest therein specified or any of the
sums of money herein referred to or hereby secured, or otherwise duly, fully and
promptly to perform, execute, comply with and abide by each, every and any of
the covenants, conditions or stipulations of this Mortgage, the Promissory
Note(s) hereby secured then and in either or any of such events, without notice
or demand, the said aggregate sum mentioned in said Promissory Note(s), less
previous payments if any, and any and all sums mentioned herein or secured
hereby shall become due and payable forthwith or thereafter at the continuing
option of the Mortgagee as fully and completely as if said aggregate sums were
originally stipulated to be paid at such time, anything in said Promissory
Note(s) or herein to the contrary notwithstanding, and the Mortgagee shall be
entitled thereupon or thereafter, without notice or demand, to institute suit at
law or in equity to enforce the rights of the Mortgagee hereunder or under said
Promissory Note(s). In the event of any default or breach on the part of the
Mortgagor hereunder or under said Promissory Note(s), the Mortgagee shall have
the continuing option to enforce payments of all sums secured hereby by action
at law or by suit in equity to foreclose this Mortgage, either or both,
concurrently or otherwise, and one action or suit shall not abate or be a bar to
or waiver of the Mortgagee's right to institute or maintain the other, provided
said Mortgagee shall have only one (1) payment and satisfaction of said
indebtedness. Notwithstanding anything contained in this Mortgage, the
Promissory Note

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or any Loan Documents, the failure of Mortgagor to comply with any of its
required covenants and obligations (other than the payment of Principal and/or
interest under the Note), shall not constitute an event of default unless such
occurrence continues to exist for thirty (30) days after written notice thereof
from Mortgagee to Mortgagor.

         17.  That in the event that Mortgagor shall (1) consent to the
appointment of a receiver, trustee, or liquidator of all or a substantial part
of Mortgagor's assets, or (2) be adjudicated a bankrupt, or admit in writing its
inability to pay its debts as they become due, or (3) make a general assignment
for the benefit of creditors or (4) file a petition or answer seeking
reorganization or arrangement with creditors, or to take advantage of any
insolvency law, or (5) file an answer admitting the material allegations of a
petition filed against the Mortgagor in any bankruptcy, reorganization or
insolvency proceeding, or (6) action shall be taken by the Mortgagor for the
purpose of effecting any of the foregoing, or (7) any order, judgment or decree
shall be entered upon an application of a creditor or Mortgagor by a court of
competent jurisdiction approving a petition seeking appointment of a receiver or
trustee of all or a substantial part of the Mortgagor's assets and if such
order, judgment, or decree shall continue unstayed and in effect for any period
of thirty (30) consecutive days, the Mortgagee may declare the Note(s) hereby
secured forthwith due and payable, whereupon the principal and the interest
accrued on the Notes and all other sums hereby secured shall become forthwith
due and payable as if all of the said sums of money were originally stipulated
to be paid on such day; and thereupon the Mortgagee without notice or demand may
prosecute a suit at law and/or in equity as if all monies secured hereby had
matured prior to its institution.

         18.  If foreclosure proceedings should be instituted against the
property covered by this Mortgage upon any other lien or claim whether alleged
to be superior or junior to the lien of this Mortgage, which has not been
dismissed or otherwise bonded off within thirty (30) days of notice to Mortgagor
of such proceedings, the Mortgagee may, at its option, immediately upon
institution of such suit or during the pendency thereof, declare this Mortgage
and the indebtedness secured hereby due and payable forthwith and may, at its
option, proceed to foreclose this Mortgage.

         19.  It is further covenanted and agreed by said parties that in the
event of a suit being instituted to foreclose this Mortgage, the Mortgagee shall
be entitled to apply at any time pending such foreclosure suit to the court
having jurisdiction thereof for the appointment of a receiver of all and
singular the Mortgaged Property, and all rents, income, profits, issues and
revenues thereof, from whatsoever source derived; and thereupon it is hereby
expressly covenanted and agreed that the court shall forthwith appoint such
receiver with the usual powers and duties of receivers in like cases; and said
appointment shall be made by the court as a matter of strict right to the
Mortgagee, and without reference to the adequacy or inadequacy of the value of
the property hereby mortgaged, or to the solvency or insolvency of the Mortgagor
or any other party defendant to such suit. The Mortgagor hereby specifically
waives the right to object to the appointment of a receiver as aforesaid and
hereby expressly consents that such appointment shall be made as an admitted
equity and as a matter of absolute right to the Mortgagee and that the same may
be done without notice to the Mortgagor.

         20.  In the case of proceedings by or against the Mortgagor in
insolvency or bankruptcy or any proceedings for its reorganization or involving
liquidation of its assets then, and in such case, the Mortgagee shall be
entitled to prove the whole amount of principal and interest due upon the
Note(s) to the full amount thereof, and all other payments, charges and costs
due under this Mortgage, without deducting therefrom any proceeds obtained from
the sale of the whole or any part of the Mortgaged Property; provided, however,
that in no case shall the Mortgagee receive a greater amount than such principal
and interest and such other payments, charges and costs from the aggregate
amount of the proceeds of the sale of the Mortgaged Property and the
distribution from the estate of the Mortgagor.

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         21.  No remedy conferred or reserved to the Mortgagee herein or in the
Mortgage Note(s) is intended to be exclusive of any other remedy or remedies,
and each and every such remedy shall be cumulative, and shall be in addition to
every other remedy given to the Mortgagee now or hereafter existing at law or in
equity or by statute. No delay or omission of the Mortgagee to exercise any
right or power accruing upon any event of default herein, or in the Mortgage
Note(s), shall impair any such default or an acquiescence therein; and every
power and remedy given by the Mortgage herein or in the Mortgage Note(s) to the
Mortgagee, may be exercised from time to time as often as may be deemed
expedient by the Mortgagee. Nothing in this Mortgage or in the Note(s) shall
affect the obligation of the Mortgagor to pay the principal of, and interest on,
the Note(s) in the manner and at the time and place therein respectively
expressed.

         22.  The Mortgagor will not, at any time, insist upon or plead, or in
any manner whatever, claim or take any benefit or advantage of, any stay or
extension of moratorium law, any exemption from execution or sale of the
Mortgaged Property or any part hereof, prior to any sale or sales thereof which
may be made pursuant to any provision herein, or pursuant to the decree,
judgment or order of any court of competent jurisdiction; nor, after any such
sale or sales, claim or exercise any right under any statute heretofore or
hereafter enacted, by any governmental authority or otherwise, to redeem the
property so sold or any part thereof, and the Mortgagor hereby expressly waives
all benefit or advantage of any such law or laws, and covenants not to hinder,
delay or impede the execution thereof, and the Mortgagor hereby expressly waives
all benefit or advantage of any such law or laws, and covenants not to hinder,
delay or impede the execution of any power herein granted or delegated to the
Mortgagee, but to suffer and permit the execution of every power as though no
such law or laws had been made or enacted. The Mortgagor for itself and all who
claim under it, waives, to the extent that it lawfully may, all right to have
the Mortgaged Property marshaled upon any foreclosure hereof. Nothing herein
shall prohibit or preclude Mortgagor from paying off all indebtedness due
Mortgagee and obtaining a full satisfaction of this Mortgage in accordance with
applicable law.

         23.  To the extent of the indebtedness of the Mortgagor to the
Mortgagee described herein or secured hereby, the Mortgagee hereby is subrogated
to the lien or liens and to the rights of the owners and holders thereof, of
each and every mortgage, lien or other encumbrance on the land described herein
which is paid and/or satisfied, in whole or in part, out of the proceeds of the
loan described herein secured hereby, and the respective liens of said
mortgages, liens or encumbrances, shall be and the same and each of them hereby
is preserved and shall pass to and be held by the Mortgagee herein as security
for the indebtedness to the Mortgagee herein described or hereby secured to the
same extent that it would have been preserved and would have been passed to and
been held by the Mortgagee had it been duly and regularly assigned, transferred,
set over and delivered unto the Mortgagee by separate deed of assignment,
notwithstanding the fact that the same may be satisfied and canceled of record,
it being the intention of the parties hereto that the same will be satisfied and
canceled of record by the holders thereof at or about the time of the recording
of this Mortgage.

         24.  In addition to the obligations described above (as evidenced by
the Note or otherwise), this Mortgage is given to secure any and all obligations
from the Mortgagor to Mortgagee arising by virtue of any security agreement,
promissory note or other agreement between Mortgagor and Mortgagee and for all
obligations of Mortgagor to Mortgagee, contingent or absolute, direct or
indirect, regardless of however or whenever created.

                                       8
<PAGE>

         25.  In the event any one or more of the provisions contained in this
Mortgage or in the Mortgage Note(s) shall, for any reason, be held to be
inapplicable, invalid, illegal or unenforceable in any respect, such
inapplicability, invalidity, illegality or unenforceability shall, at the option
of the Mortgagee, not affect any other provision of this Mortgage but this
Mortgage shall be construed as if such inapplicable, invalid, illegal or
unenforceable provision had never been contained herein or therein.

         26.  All notices hereunder shall be in writing and shall be deemed to
have been sufficiently given or served for all purposes when presented
personally or sent by telefax (notice sent by telefax shall be deemed given when
such telefax is received by the other party) or by registered or certified mail
with return receipt requested to any party hereto at its address listed below or
at such other address of which written notification has been given to the other
party, as provided herein:

              TO THE MORTGAGEE:     TransCapital Bank
                                    2100 E. Hallandale Beach Boulevard
                                    Hallandale, Florida 33009

              TO THE MORTGAGOR:     CAPITOL DEVELOPMENT, INC.
                                    7100 W. CAMINO REAL, SUITE 402
                                    BOCA RATON, FL 33432

         27.  All of the grants, covenants, terms, provisions and conditions
herein shall run with the land and shall apply to, bind and inure to the benefit
of the successors and assigns of the Mortgagor and successors and assigns of the
Mortgagee.

         28.  That the Mortgagor will, on the request of the Mortgagee, furnish
a written statement of the amount owing on the obligation which this Mortgage
secures and therein state whether or not Mortgagor claims any defenses or
offsets thereto. The Mortgagee agrees that it will, on request of the Mortgagor,
furnish a written statement of the amount owing on the obligation which this
Mortgage secures and therein state whether or not Mortgagor is current in its
payments and whether Mortgagee has knowledge of any defaults hereunder
specifying therein the nature of such defaults, if any.

         29.  The Mortgagor covenants that in the event the ownership of said
property or any part hereof becomes vested in a person other than the Mortgagor,
the Mortgagee may, without notice to the Mortgagor, deal with such successors or
successors in interest with reference to this Mortgage, and the debt secured
hereby in the same manner as the Mortgagor and may forbear to sue or may extend
time for payment of the debt secured thereby, without discharging or in any way
affecting the liability of the Mortgagor hereunder or upon the debt secured
hereby.

         30.  That this Mortgage cannot be changed orally.

         31.  That it is the intent hereof to secure payment of the Note(s)
whether the full amount thereof shall have been advanced to the Mortgagor at the
date hereof or at a later date, and the Mortgagee may, at the sole option of the
Mortgagee, from time to time make further advances to the Mortgagor, which
advances shall be secured by this Mortgage, provided, however, that the total
principal sum secured hereby and remaining unpaid including any such advances
shall not at any time exceed twice the original sum of the Note(s) as set forth
above (or such other maximum amount as may from time to time be permitted by
law). All such future advances shall be made within the time limit authorized by
Florida law for making valid future advances with interest and all indebtedness
hereby. All provisions of this Mortgage shall apply to any future advances made
pursuant to the provisions of this paragraph. Nothing herein

                                       9
<PAGE>

contained shall limit the amount secured by this Mortgage, if such amount is
increased by advances made by the Mortgagee as herein elsewhere provided and
authorized for the protection of the security of the Mortgagee.

         32.  If from any circumstances whatever, fulfillment of any provision
of this Mortgage or the Note(s) secured by it at the time performance of said
provision shall be due, shall involve transcending the limit of validity
prescribed by the usury statutes of Florida, or any other law of Florida then
ipso facto the obligation to be fulfilled shall be reduced to the limit of such
validity.

         33.  Subject to applicable law, Mortgagor agrees to pay to Mortgagee
monthly escrow payments based upon the annual amount of taxes and insurances.
Provided however, Mortgagee will not require an escrow as long as Mortgagor pays
all taxes and insurance as required herein. All real and personal property taxes
assessed against the demised Premises shall be paid before November 30th of the
year for which such taxes are assessed. Real estate taxes shall be paid by such
time so as to obtain the highest maximum discount. A failure to comply with the
terms of this paragraph shall be deemed a default in this Mortgage and the
Mortgagee shall thereafter have the right to accelerate the payment of the
unpaid principal indebtedness and to enforce this Mortgage according to the
terms hereof.

         34.  From and after the occurrence of a default under this Mortgage and
the Note(s) which it secures, or the maturity thereof, whether normal maturity
or accelerated maturity, both the unpaid principal balance and accrued interest
on the Note(s) shall bear interest at the highest lawful rate.

         35.  In the event it is determined and/or in the event any law is
passed in the State of Florida which would impose upon the Mortgagee an
obligation to pay any tax other than the intangible personal property tax paid
at the time of the recordation of this Mortgage, then and in such event, the
Mortgagor immediately upon demand will reimburse the Mortgagee for the amount of
such tax paid by Mortgagee. If the Mortgagor is prohibited by law from making
such reimbursement to the Mortgagee, or if the payment of such reimbursement by
the Mortgagor would result in the violation of any statute of the State of
Florida, the Mortgagee, at its option, shall have the right to declare the
unpaid principal indebtedness plus accrued interest immediately due and payable.

         36.  In the event the Mortgagor shall fail to perform any covenant or
condition of this Mortgage, which does not require the payment of money, within
a reasonable time after written notice and demand from the Mortgagee, in which
event Mortgagor's failure to commence to proceed diligently thereafter to cure
such failure, shall constitute an event of default hereunder.

         37.  This Mortgage shall be construed and governed by the laws of the
State of Florida.

         38.  In addition to the lien on and security interest in the realty and
improvements created hereby, this Mortgage shall, to the extent applicable,
constitute a security agreement with respect to all personal property secured
hereby; and the Mortgagor hereby agrees to execute and deliver on demand and
hereby revocably authorizes and appoints the Mortgagee, the attorney-in-fact of
the Mortgagor, jointly or severally, to execute in the name of Mortgagor,
deliver and, if appropriate, to file with the appropriate filing officer or
office such security agreements, financing statements and comparable instruments
as the Mortgagee may require in order to impose, perfect or more effectively
evidence the lien or security interest hereby created. In addition to any other
rights and remedies provided herein or by law, the Mortgagee shall be entitled
to pursue any and all remedies of a secured party under the Uniform Commercial
Code and other applicable statutes of the place or places where the Mortgaged

                                       10
<PAGE>

Property is located, it being hereby agreed that ten (10) days' notice as to the
time and place of any sale shall be reasonable.

         39.  The Mortgagor shall faithfully and fully comply with and abide by
each and every term, covenant, and condition of any superior mortgage or
mortgages and never permit the same to go into default. A default or delinquency
under any superior mortgage or mortgages shall automatically and immediately
constitute a default under this Mortgage. The Mortgagee hereby is expressly
authorized at the option of the Mortgagee to advance all sums necessary to keep
any superior mortgage or mortgages in good standing, and all sums so advanced
together with interest thereon at the default rate set forth in the Note(s)
shall be determined additional monies owned by the Mortgagor to the Mortgagee,
shall be payable on demand of the Mortgage, and secured by the lien of this
Mortgage.

         40.  That no extension of time or modification of the terms of payment
of the Promissory Note(s) and no release of any part or parts of the Mortgaged
Property by the Mortgagee shall release, relieve or discharge the Mortgagor from
the payment of any sums hereby secured but, in such event, the Mortgagor shall
nevertheless be liable to pay such sums according to the terms of such extension
or modification unless specifically released and discharged in writing by the
Mortgagee. Any acceptance by the Mortgagee of late or part payment of any
installment of principal or interest, or both, or of late or part performance of
any covenant or delay by the Mortgagee for any period of time in exercising the
option to mature the entire debt secured hereby shall not operate as a waiver or
forfeiture of the right to exercise such option to mature the entire debt
secured hereby. THE MORTGAGOR ACKNOWLEDGES THAT THE FOREGOING MAY RESULT IN A
MODIFICATION OF THE COMMON LAW RULES OF WAIVER AND ESTOPPEL. THE MORTGAGOR
AFFIRMATIVELY STATES THAT SUCH MODIFICATION IS INTENDED, IT BEING IN THE BEST
INTEREST OF THE MORTGAGOR TO PERMIT THE MORTGAGEE FLEXIBILITY IN RESPONDING TO
VARIOUS SITUATIONS. As an example, it is to be the Mortgagor's benefit that the
Mortgagee not be obligated to accelerate the obligations of the Mortgagor
secured hereby where the Mortgagor fails to make a payment when it is due;
rather the Mortgagee may permit such late payment without prejudicing the
Mortgagee's rights here under.

         41.  Mortgagor hereby expressly represents to Mortgagee that to the
best of Mortgagor's knowledge, the Premises has not in the past been used for
handling, storage, transportation or disposal of hazardous waste or toxic
materials. Further, Mortgagor expressly represents to Mortgagee that the
Premises is not presently being used and will not in the future be used by
Mortgagor, its successors and permitted assigns, for the handling, storage,
transportation or disposal of hazardous or toxic materials. Mortgagor agrees to
indemnify, defend and hold Mortgagee harmless from and against any loss to
Mortgagee, including without limitation, attorneys' fees and costs incurred by
Mortgagee as a result of such past, present or future use, handling, storage,
transportation or disposal of hazardous or toxic materials. Mortgagee, at
Mortgagee's sole option, may obtain, at Mortgagor's expense, a report from a
reputable environmental consultant of Mortgagee's choice as to whether the
Premises has been or presently is being used for the handling, storage,
transportation or disposal of hazardous or toxic materials. If the report
indicates such past or present use, handling storage, transportation or
disposal, Mortgagee may require that all violations with respect to hazardous or
toxic materials be corrected and/or that Mortgagor obtain all necessary
environmental permits.

         42.  If any of the terms and conditions of this Mortgage and Security
Agreement are in conflict of the terms and conditions of the Promissory Note of
even date, the terms of this Mortgage and Security Agreement shall govern.

         43.  This loan is made primarily for commercial purposes.

                                       11
<PAGE>

         44.  WAIVER OF JURY TRIAL. MORTGAGOR AND MORTGAGEE HEREBY KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT EITHER MAY HAVE TO TRAIL BY JURY
IN RESPECT TO ANY LITIGATION BASED HEREON OR ARISING OUT OF OR UNDER OR IN
CONNNECTION WITH THIS MORTGAGE, THE PROMISSORY NOTE(S), AND ANY AGREEMENTS
CONTEMPLATED TO BE EXECUTED IN CONJUNCTION HEREWITH, OR ANY COURSE OF CONDUCT,
COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTION OF EITHER
PARTY. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES ENTERING INTO
THIS MORTGAGE.

         IN WITNESS WHEREOF, this Mortgage has been executed as of the day and
year first above written.

WITNESSES:

Signed, sealed and delivered            CAPITOL DEVELOPMENT, INC.,
In the presence of:                                a Nevada Corporation

sign: /s/ VERONICA ABREU                By: /s/ ASHLEY BLOOM
      ------------------------------        ------------------------------
print:    Veronica Abreu                     ASHLEY BLOOM, President
       -----------------------------

sign: /s/ [ILLEGIBLE]
      ------------------------------
print:    [ILLEGIBLE]
       -----------------------------

STATE OF FLORIDA            )
                            ) SS.
COUNTY OF BROWARD           )

         The foregoing Mortgage and Security Agreement was acknowledged before
me this 15th day of September, 2004, by ASHLEY BLOOM, President of CAPITOL
DEVELOPMENT, INC., a Nevada Corporation. He has produced a driver's license as
identification and did not take an oath.

                                                NOTARY PUBLIC

                                                sign: /s/ VERONICA ABREU
                                                      --------------------------
                                                print:   Veronica Abreu
                                                       -------------------------
                                                       State of Florida at Large
                                                                 (SEAL)
My commission expires:

                                 Veronica Abreu
   [GRAPHIC OMITTED]    MY COMMISSION # DD166640 EXPIRES
                               November 19, 2006
                      BONDED THRU TROY FARM INSURANCE, INC.

                                       12
<PAGE>

                                  Exhibit "A"
                                  -----------

                               Legal Description
                               -----------------

Parcel #1
---------
Lot 11, Block 18, Unit 5, Lehigh Acres, Section 12, Township 44 South, Range 27
East, according to the plat thereof, as recorded in Deed Book 254, Page 90, of
the Public Records of Lee County, Florida.

Parcel #2
---------
Lot 7, Block 22, Unit 6, Lehigh Acres, Section 1, Township 44 South, Range 27
East, according to the plat thereof, as recorded in Deed Book 254, Page 100, of
the Public Records of Lee County, Florida.

Parcel #3
---------
Lot 5 and 6, Block 15, Unit 5, Lehigh Acres, according to the plat thereof, as
recorded in Deed Book 252, Page 234, of the Public Records of Lee County,
Florida.

Parcel #4
---------
Lot 19, Block 43, Unit 11, Lehigh Acres, Section 20, Township 44 South, Range 27
East, according to the plat thereof, as recorded in Deed Book 252, Page 461, of
the Public Records of Lee County, Florida.

Parcel #5
---------
Lot 11, Block 36, Unit 9, Lehigh Acres, Section 23, Township 44 South, Range 27
East, according to the plat thereof, as recorded in Deed Book 254, Page 55, of
the Public Records of Lee County, Florida.

Parcel #6
---------
Lot 19, Block 2, Unit 5, Lehigh Acres, Section 13, Township 44 South, Range 27
East, according to the plat thereof, as recorded in Deed Book 254, Page 85, of
the Public Records of Lee County, Florida.

Parcel #7
---------
Lot 8, Block 31, Unit 8, Lehigh Acres, Section 14, Township 44 South, Range 27
East, according to the plat thereof, as recorded in Deed Book 254, Page 80, of
the Public Records of Lee County, Florida.

Parcel #8
---------
Lot 4, Block 57, Unit 15, Lehigh Acres, Section 2, Township 44 South, Range 27
East, according to the plat thereof, as recorded in Plat Book 20, Page 18, of
the Public Records of Lee County, Florida.

Parcel #9
---------
Lot 3, Block 57, Unit 15, Lehigh Acres, Section 2, Township 44 South, Range 27
East, according to the plat thereof, as recorded in Plat Book 20, Page 18, of
the Public Records of Lee County, Florida.
<PAGE>

Parcel #10
----------
Lot 2, Block 57, Unit 15, Lehigh Acres, Section 2, Township 44 South, Range 27
East, according to the plat thereof, as recorded in Deed Book 254, Page 90, of
the Public Records of Lee County, Florida.

Parcel #11
----------
Lot 17, Block 20, Unit 5, Lehigh Acres, Section 12, Township 44 South, Range 27
East, according to the plat thereof, as recorded in Deed Book 254, Page 90, of
the Public Records of Lee County, Florida.

Parcel #12
----------
Lot 2, Block 60, Unit 15, Lehigh Acres, Section 12, Township 44 South, Range 27
East, according to the plat thereof, as recorded in Plat Book 20, Page 18, of
the Public Records of Lee County, Florida.

Parcel #13
----------
Lot 2, Block 36, Unit 4, Lehigh Acres, Section 12, Township 44 South, Range 27
East, according to the plat thereof, as recorded in Plat Book 15, Page 61, of
the Public Records of Lee County, Florida.

Parcel #14
----------
Lot 14, Block 243, Unit 37, GREENBRIAR, Lehigh Acres, Section 6, Township 44
South, Range 27 East, according to the plat thereof, as recorded in Plat Book
27, Page 58, of the Public Records of Lee County, Florida.

Parcel #15
----------
Lot 6, Block 48, Unit 12, Lehigh Acres, Section 16, Township 44 South, Range 27
East, according to the plat thereof, as recorded in Deed Book 263, Page 169, of
the Public Records of Lee County, Florida.

Parcel #16
----------
Lot 3, Block 2, Unit 1, Lehigh Acres, Section 20, Township 44 South, Range 27
East, according to the plat thereof, as recorded in Plat Book 15, Page 28, of
the Public Records of Lee County, Florida.

Parcel #17
----------
West 1/2 of Lot 1, Block 28, Unit 6, Lehigh Acres, Section 7, Township 44 South,
Range 27 East, according to the plat thereof, as recorded in Plat Book 15, Page
8, of the Public Records of Lee County, Florida.

Parcel #18
----------
Lot 5, Block 18, Unit 5, Lehigh Acres, Section 21, Township 44 South, Range 27
East, according to the plat thereof, as recorded in Plat Book 15, Page 30, of
the Public Records of Lee County, Florida.

                                       2
<PAGE>

Parcel #19
----------
Lot 22, Block 42, Unit 11, Lehigh Acres, Section 20, Township 44 South, Range 27
East, according to the plat thereof, as recorded in Deed Book 252, Page 461, of
the Public Records of Lee County, Florida.

Parcel #20
----------
Lot 17, Block 288, Unit 47, GREENBRIAR, Lehigh Acres, Section 6, Township 44
South, Range 27 East, according to the plat thereof, as recorded in Plat Book
27, Page 70, of the Public Records of Lee County, Florida.

Parcel #21
----------
Lot 10, Block 77, Unit 14, Lehigh Acres, Section 1, Township 44 South, Range 27
East, according to the plat thereof, as recorded in Plat Book 15, Page 183, of
the Public Records of Lee County, Florida.

Parcel #22
----------
West 1/2 of Lot 24, Block 9, Unit 3, Lehigh Acres, Section 11, Township 44
South, Range 27 East, according to the plat thereof, as recorded in Deed Book
259, Page 121, of the Public Records of Lee County, Florida.

Parcel #23
----------
Lot 1, Block 60, Unit 15, Lehigh Acres, Section 2, Township 44 South, Range 27
East, according to the plat thereof, as recorded in Plat Book 20, Page 18, of
the Public Records of Lee County, Florida.

                                       3OPERATING AGREEMENT
                                       OF
                         PHILBUILT DEVELOPMENT, L.L.C.

This Operating Agreement by, between and among the Members confirms our
understanding as to the matters contained herein. The parties hereto agree as
follows:

                                    ARTICLE I
                                   Definitions
                                   -----------

        SECTION 1.1. As used herein, the following terms and phrases shall have
the meanings indicated:

        A. "Act" shall mean the Limited Liability Company Act of the State of
organization, as amended

        B. "Capital Account" shall mean, with respect to each Member, the
account established for each Member pursuant to Section 6.5, which will
initially equal the Capital Contributions of such Member and will be (a)
increased by the amount of Net Profits allocated to such Member and (b) reduced
by the amount of Net Losses allocated to such Member and the amount of Cash Flow
distributed to such Member. Members' Capital Accounts shall be determined and
maintained in accordance with the rules of paragraph (b)(2)(iv) of Regulation
Section 1.704-1 of the Code.

        C. "Capital Contributions" shall mean the fair market value of the
amounts contributed by the Members pursuant to Section 6.1.

        D. "Cash Flow" shall have the meaning provided in Section 7.1.

        E. "Code" shall mean the Internal Revenue Code of 1986, as amended, or
corresponding provisions of subsequent revenue laws.

        F. "Operating Managers" shall mean the Member or Members selected by the
Members at a meeting of Members duly called and held for such purpose to serve
as Operating Manager or Operating Managers of the Company.

        G. "Members" shall mean the persons designated as such in Schedule A of
this Agreement, any successors) to their interests as such in the Company; and
any other person who pursuant to this Agreement shall become a Member, and any
reference to a "Member" shall be to any one of the then Members.

                                        1
<PAGE>

        H. "Net Profits" and "Net Losses" shall mean the net profit or net loss,
respectively, of the Company determined in accordance with Section 8.1.

        I. The words "membership interest" shall mean a Member's interest in the
Company which shall be in the proportion that the Member's share of the profits
and losses of the Company bears to the aggregate shares of all the Members
determined in accordance with the Act which states that profits and losses shall
be allocated on the basis of the value of the contributions of each Member as
stated in the Operating Agreement. A Membership Interest may be evidenced by a
certificate issued by the Company. A Membership Interest may be expressed on a
certificate as "Units" where a Member's Units bears the same relationship to the
aggregate Units of all Members that the Member's Membership Interest bears to
the aggregate Membership Interests of all Members. A Member's Interest may be a
certificated security or an uncertificated security within the meaning of
section 8-102 of the Uniform Commercial Code if the requirements of section
8-103(c) are met, and if the requirements are not met such interest shall, for
purposes of the Uniform Commercial Code, be deemed to be a general intangible
asset.

        J. "Company" shall mean this Limited Liability Company.

        K. "Person" shall mean any natural person, corporation, partnership,
joint venture, association, limited liability company or other business or legal
entity.

                                   ARTICLE II
                           Organization of the Company
                           ---------------------------

        SECTION 2.1. The purpose of the Company is to conduct any lawful
business for which limited liability companies may be organized and to do all
things necessary or useful in connection with the foregoing.

        SECTION 2.2. The Members shall be Members in the Company and shall
continue to do business under the name of the Company until the Operating
Managers shall change the name or the Company shall terminate.

        SECTION 2.3. The principal address of the Company shall be such place or
places as the Operating Managers may determine. The Operating Managers will give
notice to the Members promptly after any change in the location of the principal
office of the Company.

        SECTION 2.4. The Company shall terminate on the date provided in the
Articles of Organization, except that the Company may terminate prior to such
date as provided in this Agreement.

                                        2
<PAGE>

                                   ARTICLE III
                                Status of Members
                                -----------------

        SECTION 3.1. No Member will be bound by, or be personally liable for the
expenses, liabilities or obligations of the Company unless such Member
subsequently specifically agrees in writing to be personally liable for the
expenses, liabilities or obligations of the Company. Notwithstanding the
foregoing, all Members will personally guaranty the obligations of the Company
to institutional lenders and or private lenders as requested and agreed to by
all Members.

        SECTION 3.2. No Member will be entitled to withdraw any part of his
Capital Account or to receive any distributions from the Company except as
expressly provided in this Agreement.

                                   ARTICLE IV
                             Meeting of the Members
                             ----------------------

        SECTION 4.1. An annual meeting of Members shall be held within five (5)
months after the close of the fiscal year of the Company on such date and at the
time and place (either within or without the State of its organization) as shall
be fixed by the Members. At the annual meeting, the Members shall elect the
Operating Managers and transact such other business as may properly be brought
before the meeting.

        SECTION 4.2. A special meeting of Members may be called at any time by
the Operating Managers and shall be called by the Operating Managers at the
request in writing of that Membership interest specified in Schedule A of the
Members entitled to vote at such meeting. Any such request shall state the
purpose or purposes of the proposed meeting. Business transacted at any special
meeting of Members shall be confined to the purposes set forth in the notice
thereof.

        SECTION 4.3. Written notice of the time, place and purpose of every
meeting of Members (and, if other than an annual meeting, the person or persons
at whose discretion the meeting is being called), shall be given by the
Operating Managers to each Member of record entitled to vote at such meeting,
not less than ten nor more than sixty days prior to the date set for the
meeting. Notice shall be given either personally or by mailing said notice by
first class mail to each Member at his address appearing on the record book of
the Company or at such other address supplied by him in writing to the Operating
Managers of the Company for the purpose of receiving notice.

        A written waiver of notice setting forth the purposes of the meeting for
which notice is waived, signed by the person or persons entitled to such notice,
whether before or after the time of the meeting stated therein, shall be deemed
equivalent to the giving of such notice. The attendance by a Member at a meeting
either in person or by proxy without protesting the lack of notice thereof shall
constitute a waiver of notice of such Member.

                                        3
<PAGE>

        All notices given with respect to an original meeting shall extend to
any and all adjournments thereof and such business as might have been transacted
at the original meeting may be transacted at any adjournment thereof; no notice
of any adjourned meeting need be given if an announcement of the time, and place
of the adjourned meeting is made at the original meeting.

        SECTION 4.4. The holders of a majority in interest of the Members
present in person or represented by proxy, shall be requisite and shall
constitute a quorum at all meetings of members except as otherwise provided by
statute or the Articles of Organization. If however a quorum shall not be
present or represented at any meeting of Members, the Members entitled to vote
thereat, present in person or represented by proxy, shall have power to adjourn
the meeting from time to time, without notice other than announcement at the
meeting, until a quorum shall be present or represented. At such adjourned
meeting at which a quorum shall be present or represented, any business may be
transacted which might have been transacted at the meeting as originally
notified. When a quorum is once present to organize a meeting, such quorum is
not deemed broken by the subsequent withdrawal of any Members.

        SECTION 4.5. Every Member entitled to vote at any meeting shall be
entitled to vote in accordance with his membership interest in the Company held
by him of record on the date fixed as the record date for said meeting and may
so vote in person or by proxy. Any Company action shall be authorized by a
majority in interest of the votes cast by the Members entitled to vote thereon
except as may otherwise be provided by statute, the Articles of Organization or
this Operating Agreement.

        SECTION 4.6. Every proxy must be signed by the Member entitled to vote
or by his duly authorized attorney-in-fact and shall be valid only if filed with
the Operating Managers of the Company prior to the commencement of voting on the
matter in regard to which said proxy is to be voted. No proxy shall be valid
after the expiration of eleven months from the date of its execution unless
otherwise expressly provided in the proxy. Every proxy shall be revocable at the
pleasure of the person executing it except as otherwise provided by statute.
Unless the proxy by its terms provides for a specific revocation date and except
as otherwise provided by statute, revocation of a proxy shall not be effective
unless and until such revocation is executed in writing by the Member who
executed such proxy and the revocation is filed with the Operating Managers of
the Company prior to the voting of the proxy.

        SECTION 4.7. All meetings of Members shall be presided over by the
Operating Managers, or if not present, by a Member thereby chosen by the Members
at the meeting. The Operating Managers or the person presiding at the meeting
shall appoint any person present to act as secretary of the meeting.

                                        4
<PAGE>

        SECTION 4.8. For the purpose of determining the Members entitled to
notice of, or to vote at any meeting of Members or any adjournment thereof or to
express consent or dissent from any proposal without a meeting, or for the
purpose of determining the Members entitled to receive payment of any
distribution of Cash Flow or the allotment of any rights, or for the purpose of
any other action, the Members may fix, in advance, a date as the record date for
any such determination of Members. Such date shall not be more than fifty nor
less than ten days before the date of any meeting nor more than fifty days prior
to any action taken without a meeting, the payment of any distribution of Cash
Flow or the allotment of any rights, or any other action. When a determination
of Members of record entitled to notice of, or to vote at any meeting of Members
has been made as provided in this Section, such determination shall apply to any
adjournment thereof, unless the Members fix a new record date under this Section
for the adjourned date.

        SECTION 4.9. The Company shall be entitled to treat the holder of record
of any membership interest as the holder in fact thereof and, accordingly, shall
not be bound to recognize any equitable or other claim to or interest in such
membership interest on the part of any other person whether or not it shall have
express or other notice thereof, except as otherwise provided by the Act.

                                    ARTICLE V
                                   Management
                                   ----------

        SECTION 5.1. Management of the Company shall be vested in the Operating
Managers of the Company. All Operating Managers must be Members of the Company.

Initially, the Company shall have one (1) Operating Manager who shall be Capitol
Development, Inc., a Nevada corporation. Except for the Operating Manager, no
Member will take part in or interfere in any manner with the conduct or control
of the business of the Company or have any right or authority to act for or bind
the Company, except as provided in this Agreement.

        SECTION 5.2. The Operating Manager, in compensation for its duties and
responsibilities, shall receive a Management Fee equivalent to four percent (4%)
per annum interest on any remaining balance of the construction loan from
Transcapital Bank. Such Management fees shall be paid monthly on the first day
of the month and shall be based on the balance of Transcapital Bank loan, as of
the 30th day of previous month (i.e. payment due January 1st based on a December
30th loan balance). Management fees shall commence 30 days after the close of
the Transcapital Bank loan and continue until the loan is paid in full, at which
time such fees shall terminate.

        SECTION 5.3. The Operating Manager shall hold office for the term of 24
months or until a successor has been elected and qualified. A vacancy in the
office of Operating Manager arising from any cause may be filled for the
unexpired portion of the term by another Member duly elected as an Operating
Manager.

                                        5
<PAGE>

        SECTION 5.4. Any Operating Manager may resign at any time by giving
written notice to the Members. Any such resignation shall take effect at the
time specified therein or, if the time is not specified therein, upon the
receipt thereof. Irrespective of whether any such resignations shall have been
accepted.

        SECTION 5.5. The Company shall be managed by the Operating Manager(s)
and the conduct of the Company's business shall be controlled and conducted
solely and exclusively by the Operating Manager(s) in accordance with this
Agreement. In addition to and not in limitation of any rights and powers
conferred by law or other provisions of this Agreement, the Operating Manager(s)
shall have and may exercise on behalf of the Company all powers and rights
necessary, proper, convenient or advisable to effectuate and carry out the
purposes, business and objectives of the Company, and to maximize Company
profits.

        Specifically, and notwithstanding anything stated to the contrary
herein, the Operating Manager, Capitol Development, Inc., shall make all
business decisions made in the ordinary course of business. Notwithstanding, the
Members shall have a right to vote, by a majority of the Members entitled to
vote, if the proposed loan schedule materially varies from the Loan Amortization
and Draw Schedule, attached hereto as Exhibit AA,@ and made a part hereof.

        By their signatures below, the Members and Operating Manager confirm
that they have agreed to the purchase of real property located at 2740 NE 48th
Street, Lighthouse Point, County of Broward, State of Florida, on substantially
the same terms and conditions incorporated in the letter to Philip H. St. Louis,
Capitol Development, Inc., and the Company, from Helaine Raucher, trustee for
the David L. Raucher Revocable Trust, dated November ____, 2003.

        SECTION 5.6. Any person made or threatened to be made a party to an
action or proceeding, whether civil or criminal, by reason of the fact that he,
his testator or interstate, then, is, or was a manager. Member, employee or
agent of the Company, or then serves or has served on behalf of the company in
any capacity at the request of the Company, shall be indemnified by the Company
against reasonable expenses, judgments, fines and amounts actually and
necessarily incurred in connection with the defense of such action or proceeding
or in connection with an appeal therein, to the fullest extent permissible by
the Act. Such right of indemnification shall not be deemed exclusive of any
other rights to which such person may be entitled.

                                        6
<PAGE>

                                   ARTICLE VI
                                     Capital
                                     -------

        SECTION 6.1. The Members have contributed to the Company in exchange for
their membership interests their interests the cash and other property as set
forth on Schedule AA,@ annexed hereto.

        SECTION 6.2. The fair market value and the adjusted basis of the
contributing Member of any property other than cash contributed to the Company
by a Member shall be set forth on Schedule A, annexed hereto.

        SECTION 6.3. Except as expressly provided in this Agreement, no Member
shall be required to make any additional contributions to the capital of the
Company.

        SECTION 6.4. No interest shall be paid on the Capital Account of any
Member.

        SECTION 6.5. A Capital Account shall be established for each Member on
the books and records of the Company in accordance with section 1 . I.B. If any
assets of the Company are distributed to the Members in kind, the Capital
Accounts of the Members shall be adjusted to reflect the difference between the
fair market value of such assets on the date of distribution and the basis of
the Company in such assets.

                                   ARTICLE VII
                              Distribution of Cash
                              --------------------

        SECTION 7.1 The Company shall distribute to the Members from time to
time all cash (regardless of the source thereof) of the Company which is not
required for the operation or the reasonable working capital requirements of the
Company, (such cash is sometimes referred to herein as A Cash Flow"). For
purposes of this Agreement all Cash Flow allocated to the Members shall be
allocated among them in the ratio in which the total Capital Contributed by each
Member pursuant to Section 6.1 on the last day of each calendar month during the
year bears to the total Capital Contributed by all Members pursuant to
Section 6.1 on such date without regard to the number of days during such month
in which such a person was a Member.

        SECTION 7.2. Distributions of Cash Flow shall be made from time to time
in such manner as determined by the Operating Manager(s). Notwithstanding any
provision in this Agreement to the contrary, no Member shall be entitled to any
distribution until and unless all outstanding loans, plus any accrued interest,
owed by the Company has been paid in full.

        SECTION 7.3. Priority Payments. Members shall be entitled to
distributions only after the following priority payments have been paid in full:
(i) first payment to any and all outstanding loans, plus any accrued interest,
(ii) second payment to The David L. Raucher Revocable Trust in the amount of
$150,000.00, on the terms and conditions provided in Article 9, Section 9.5 of
this Agreement, and (iii) third payment to Capitol Development, Inc., in the
amount of $150,000.00 on the terms and conditions provided in Article 9, Section
9.5 of this Agreement.

                                        7
<PAGE>

                                  ARTICLE VIII
                                Profit and Losses
                                -----------------

        SECTION 8.1. The Net Profits and Net Losses of the Company shall be the
net profits and net losses of the Company as determined for Federal income tax
purposes.

        SECTION 8.2. The Net Profits and Net Losses of the Company and each item
of income, gain, loss, deduction or credit entering into the computation
thereof, shall be allocated to the Members in the same proportions that they
share in distributions of Cash Flow pursuant to Section 7.1, or if there is no
Cash Flow, that they would have shared if there had been Cash Flow.

        SECTION 8.3. References herein to "Reg. Sec.", are to the regulations
promulgated by the United States Treasury to the Code. The terms "minimum gain",
"minimum gain chargeback", "qualified income offset" and "nonrecourse deduction"
are to be interpreted consistent with the definitions of such terms in Reg. Sec.
1-704-2. "Nonrecourse liability" means any liability with respect to which no
Member bears the risk of loss under Code Section 752. The following special
allocations shall be made in the following orders

        A. Except as otherwise set forth in Reg. Sec. 1.704-2(f), if there is a
net decrease in minimum gain, during the fiscal year of the Company, each
Member, shall be specially allocated items of gross income and gain for such
fiscal year (and, if necessary, subsequent fiscal years) in an mount equal to
that Member's share of the net decrease of minimum gain determined in accordance
with Reg. Sec. 1.7042(g). Allocations in accordance with this Section shall be
made first from the disposition of Company assets subject to nonrecourse
liabilities, to the extent of the minimum gain attributable to those assets, and
thereafter, from a pro-rata portion of the Company's other items of income and
gain for the taxable year. This Section is intended to comply with the minimum
gain chargeback requirement of Reg. Sec. 1.7042(f).

        B. Except as otherwise set forth in Reg. Sec. 1.704-2(1)(4), if there is
a net decrease in a Member's nonrecourse liability minimum gain attributable to
Members' nonrecourse liabilities during any fiscal year, each Member who has a
share of the Member nonrecourse liability minimum gain attributable to Member
nonrecourse liability shall be specially allocated items of gross income and
gain for such fiscal year (and, if necessary, subsequent fiscal years) in an
amount equal to that Member's share of the net decrease in Members' nonrecourse
debt minimum gain attributable to such Member nonrecourse debt.

                                        8
<PAGE>

Allocations pursuant to this Section shall be made first from gain recognized
from the disposition of Company assets subject to Member nonrecourse liabilities
to the extent of Member minimum gain attributable to those assets, and
thereafter, from a pro-rata portion of the Company's other items of income and
gain for the fiscal year. This section is intended to comply with the minimum
gain chargeback requirements of Reg. Sec. 1.704-2(1).

        C. A Member who unexpectedly receives an adjustment, allocation or
distribution described in (4), (S) or (6) of Reg. Sec. 1.704-1(b)(2)(ii)(d) will
be allocated items of income and gain in an amount and manner sufficient to
eliminate such deficit balance as quickly as possible. An allocation shall be
made pursuant to this Section and if and to the extent a Member would have a
deficit in his adjusted Capital Account after all other allocations provided for
in this Section 8.3 were made as if this paragraph were not in the agreement.

        D. Nonrecourse deductions shall be allocated among the Members in the
same proportion in which they share the Cash Flow of the Company.
Any nonrecourse deduction shall be allocated to any Member who bears the
economic risk of loss with respect to the Member nonrecourse liability to which
such deduction is attributable.

        SECTION 8.4. Any Company gain or loss realized with respect to property,
other than money, contributed to the Company by a Member shall be shared among
the Members pursuant to Code section 704(c) and regulations to be promulgated
thereunder so as to take account of the difference between the Company basis and
the fair market value of the property at the time of the contribution ("built-in
gain or loss"). Such built-in gain or loss shall be allocated to the
contributing Member upon the disposition of the property.

                                   ARTICLE IX
                      Admission and Withdrawal of a Member
                      ------------------------------------

        SECTION 9.1. A Member may transfer his interest in the Company to
another person or entity only with the prior unanimous consent of the other
Members either in writing or at a meeting called for such purpose. If all of the
other Members do not approve of the transfer, the transferee shall have no right
to participate in the management of the business and affairs of the Company or
to become a Member. The transferring Member must give thirty (30) days written
notice to all other Members of any proposed transfer.

        Except as provided in Section 9.5 of this Agreement, if a Member decides
to sell his interest in the Company to another Member, or if a Member shall be
deemed to be in "retirement" as that term is defined hereinafter, in which case
the retired Member shall sell his interest to the other Member(s), the selling
Member's interest shall be

                                        9
<PAGE>

valued at (and sold for) his initial specific capital contribution plus the
total of accrued principal payments under loan(s) utilized by the Company to
acquire real property multiplied by the selling member's percentage Membership
Interest as set forth in Schedule A, annexed hereto. It is agreed that payment
to the selling member for his interest shall be made in thirty-six equal
payments of principal plus interest equal to the prime rate of interest quoted
by Wall Street Journal at the time of the sale.

        SECTION 9.2. The Members agree to sign such additional documents as may
be required in order to admit additional Members to the Company, pursuant to
section 9.1 as well as, among other things, to provide for the division of
profits, losses and Cash Flow among the Members.

        SECTION 9.3. All costs and expenses incurred by the Company in
connection with the assignment of a Member's interest, including any filing fees
and publishing costs and the fees and disbursements of counsel, shall be paid by
the assigning Member.

        SECTION 9.4. Each person who becomes a Member in the Company, by
becoming a Member, shall and does hereby ratify and agree to be bound by the
terms and conditions of this Agreement.

        SECTION 9.5. Pre-Approved Transfers. Notwithstanding any provision to
the contrary in this Operating Agreement, all Members authorize, pre-approve and
agree to the following transfers without a vote of the Members:

        (i)     The David L. Raucher Revocable Trust ("Trust") may transfer its
                25% membership interest to Philip St. Louis; provided that
                Philbuilt Development LLC, pays the Trust a lump sum payment of
                $150,000.00 for such membership interest on the priority terms
                provided in Article 7, Section 7.3 of this Agreement; and
        (ii)    Capitol Development, Inc., may transfer its 50% membership
                interest to Philip St. Louis; provided that Philbuilt
                Development, LLC, pays Capitol Development, Inc., a lump sum
                payment of $150,000.00 for such membership interest on the
                priority terms provided in Article 7, Section 7.3 of this
                Agreement.

        The Members agree to sign such documents as may be required to transfer
the pre-approved transfers of membership interest.

                                    ARTICLE X
                      Termination or Dissolution of Company
                      -------------------------------------

        SECTION 10.1. The Company shall be terminated prior to the date of
expiration of the term as provided in Section 2.4 if (a) a majority in interest
of the Members consent that the Company should be terminated and dissolved, or
(b) the Company is dissolved pursuant to this Agreement.

                                       10
<PAGE>

        SECTION 10.2. If the Company is dissolved, the owners of a majority in
interest of the remaining Members may elect to reconstitute and continue the
Company as a successor Company upon the same conditions as are set forth in this
Agreement. Any such election to continue the Company will not result in the
creation of a new Company among the remaining Members, nor will such election
require the amendment of this Agreement or the execution of an amended
Agreement.

        SECTION 10.3. Upon the termination and dissolution of the Company, the
then Operating Manager, or Operating Managers, if any, or, if there is no
Operating Manager, any person elected to perform such liquidation by the written
consent of the owners of a majority in interest of the Members, shall proceed to
the liquidation of the Company. The proceeds of such liquidation shall be
applied and distributed as follows:

        A. If any assets of the Company are to be distributed in kind, such
assets shall be distributed on the basis of the fair market value thereof, and
any Member entitled to any interest in such assets shall receive such interest
therein as a tenant-in-common with all other Members so entitled. The fair
market value of such assets shall be determined by an independent appraiser to
be selected by the Company's independent public accountants. The amount by which
the fair market value of any Property to be distributed in kind to the Members
exceeds or is less than the basis of such Property, shall, to the extent not
otherwise recognized by the Company, be taken into account in computing Net
Profits or Net Losses (and shall be allocated among the Members in accordance
with Section 8.2) for purposes of crediting or charging the Capital Accounts of,
and liquidating distributions to, the Members under Section 10.3.

        B. All distributions upon liquidation of the Company shall be
distributed as follows: to each of the Members, in proportion to the amounts of
their respective positive Capital Accounts, as such accounts have been adjusted
(i) in accordance with Section 6.5 to reflect the Net Profit or Net Loss
realized or incurred upon the sale of the Company's property or assets and any
deemed sale pursuant to Section 10.3.A; (ii) in accordance with Section 8.2 to
reflect all Net Profits or Net Losses with respect to the year of liquidation.
No Member shall be liable to repay the negative amount of his Capital Account.

        SECTION 10.4. Each of the Members shall be furnished with a statement,
reviewed by the Company's independent public accountants, which shall set forth
the assets and liabilities of the Company as of the date of the Company's
liquidation. Upon completion of the liquidation, the Operating Managers shall
execute and cause to be filed a Certificate of Dissolution of the Company and
any and all other documents necessary with respect to termination of the
Company.

                                       11
<PAGE>

                                   ARTICLE XI
                               Books and Reports
                               -----------------

        SECTION 11.1. The Operating Managers shall cause the Company to maintain
the following records:

        A. Complete and accurate books of account, in which shall be entered,
fully and accurately, each and every transaction of the Company, shall be kept
by the Operating Managers at the principal office of the Company. The fiscal
year of the Company shall be the calendar year. The books of account of the
Company shall be kept in accordance with sound accounting practices and
principles applied in a consistent manner by the Company; provided, however,
that all methods of accounting and treating particular transactions shall be in
accordance with the methods of accounting employed for Federal income tax
purposes. All determinations by the Operating Managers with respect to the
treatment of any item or its allocation for Federal, state or local tax purposes
shall be binding upon all the Members unless the determination is inconsistent
with any express provision of this Agreement.

        B. A current list of the full name and last known mailing address of
each Member set forth in alphabetical order together with the contribution and
share in profits and losses of each Member; a copy of the Articles of
Organization of the Limited Liability Company and any amendments thereto; a copy
of the Limited Liability Company Operating Agreement and any amendments thereto;
a copy of the Limited Liability Company's federal, state and local income tax
returns for the three most recent fiscal years.

        C. Any Member shall have the right from time to time at his expense to
have his accountants and representatives examine and/or audit the books and
records of the Company and the information referred to in this Section, and the
Operating Managers will make such books and records and information available
for such examinations and/or audits.

        SECTION 11.2. No value shall be placed for any purpose upon the Company
name or the right to its use, or upon the goodwill of the Company or its
business. Upon termination or dissolution of the Company (without reconstitution
thereof) as provided in this Agreement, neither the Company name or the right to
its use, nor the goodwill of the Company, shall be considered as an asset of the
Company.

        SECTION 11.3. The Operating Managers will cause to be sent to the
Members within a reasonable period after the close of each year the following:
(a) annual statements of the Company's gross receipts and operating expenses,
and the capital accounts of each Member, prepared by the Company's independent
public accountants, to be transmitted to each Member; and (b) a report to be
transmitted to each Member indicating the Member's share of the Company's profit
or loss for that year and the Member's allocable share of all items of income,
gain, loss, deduction, and credit, for Federal income tax purposes.

                                       12
<PAGE>

                                   ARTICLE XII
                                  Tax Election
                                  ------------

        SECTION 12.1. In the event of a transfer of a Member's interest, or upon
the death of a Member, or in the event of the distribution of Company property
to any party hereto, the Company may (but need not necessarily) file an
election, in accordance with Section 754 of the Code to cause the basis of the
Company Property to be adjusted for Federal income tax purposes, as provided by
Sections 734 and 743 of the Code.

                                  ARTICLE XIII
                                  Miscellaneous
                                  -------------

        SECTION 13.1. Any notice or other communication under this Agreement
shall be in writing and shall be considered given when mailed by registered or
certified mail, return receipt requested, to the parties at the following
addresses (or at such other address as a party shall have previously specified
by notice to the others as the address to which notice shall be given to him):

                A. If to the Company, to it in care of the Operating Managers at
        the address of the Company.

                B. If to the Operating Managers, to them at the address of the
        Company.

                C. If to any Member, to him at his address set forth on the
        books and records of the Company.

        SECTION 13.2. This Agreement contains a complete statement of all of the
arrangements among the parties with respect to the Company and cannot be changed
or terminated orally or in any manner other than by a written agreement executed
by all of the Members. There are no representations, agreements, arrangements or
understandings, oral or written, between or among the parties relating to the
subject matter of this Agreement which are not fully expressed in this
Agreement.

        SECTION 13.3. This Agreement shall be construed without regard to any
presumption or other rule requiring construction against the party causing this
Agreement to be drafted.

        SECTION 13.4. This Agreement is intended to be performed in accordance
with, and only to the extent permitted by, all applicable laws, ordinances,
rules and regulations of the jurisdiction in which the Company does business. If
any provision of this Agreement, or the application thereof to any person or
circumstance, shall for any reason and to any extent, be invalid or
unenforceable, the remainder of this Agreement and the application of that
provision to other persons or circumstances shall not be affected, but rather
shall be enforced to the extent permitted by law.

                                       13
<PAGE>

        SECTION 13.5. Anything hereinbefore in this Agreement to the contrary
notwithstanding, all references to the Property of the Company are deemed to
include the profits, losses and Cash Flow of the Property.

        SECTION 13.6. Irrespective of the place of execution or performance,
this Agreement shall be governed by and construed in accordance with the laws of
the State of organization of the Company applicable to agreements made and to be
performed in the State of organization of the Company.

        SECTION 13.7. The captions, headings and table of contents in this
Agreement are solely for convenience of reference and shall not affect its
interpretation.

        SECTION 13.8. This Agreement may be executed in any number of
counterparts, each of which shall be an original but all of which shall be
deemed to constitute a single document.

        SECTION 13.9. Whenever the context so requires, the male gender when
used herein shall be deemed to include the female gender, the female gender
shall be deemed to include the male gender, the singular shall be deemed to
include the plural and the plural shall be deemed to include the singular.

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the dates set forth after signatures below.

            [SCHEDULE AA@ AND COUNTERPART SIGNATURE PAGES ATTACHED]

                                       14
<PAGE>

                                   SCHEDULE A

List name of Member, Membership Interest, address, social security number and
amount of capital contribution:

                                Membership               Capital
Name and Address                 Interest       SS#      Contribution
--------------------------      ----------      ---      ------------
Capitol Development Inc.           50%
7100 Camino Real Blvd.
Suite 402
Boca Raton, FL 33433

Phil St. Louis                     25%
4701 N. Federal Highway
Suite 330, A-12
Lighthouse Point, FL 33064

The David L. Raucher               25%
Revocable Trust
2930 NE 48th Street
Lighthouse Point, FL 33064

                                       15
<PAGE>

                       COUNTERPART SIGNATURE PAGES FOR THE
                OPERATING AGREEMENT OF PHILBUILT DEVELOPMENT, LLC
                            AND SCHEDULE AA@ THERETO

                The signature below evidences the undersigned's agreement and
consent to be bound by all terms, covenants, and conditions as set forth in the
Philbuilt Development, LLC Operating Agreement and Schedule AA@ thereof, to
which this counterpart signature page is attached.

                MEMBER:

                                             CAPITOL DEVELOPMENT, INC.

                                             /s/ ASHLEY B. BLOOM
                                             -------------------------
                                             By:  Ashley B. Bloom
                                             Its: VP

STATE OF FLORIDA       )
                       )
COUNTY OF PALM BEACH   )

        The foregoing was acknowledged before me this 5 day of January, 2004, by
[ILLEGIBLE], as V. President and on behalf of Capitol Development, Inc., a
Nevada corporation, G who is personally known to me or G who produced
[ILLEGIBLE] as identification.

                                             Notary Public

                                             My commission expires:

                                             /s/ [ILLEGIBLE]
                                             ----------------------

                                                            [SEAL]

                                       16
<PAGE>

                       COUNTERPART SIGNATURE PAGES FOR THE
               OPERATING AGREEMENT OF PHILBUILT DEVELOPMENT, LLC.
                            AND SCHEDULE AA@ THERETO

        The signature below evidences the undersigned's agreement and consent to
be bound by all terms, covenants, and conditions as set forth in the Philbuilt
Development, LLC Operating Agreement and Schedule AA@ thereof, to which this
counterpart signature page is attached.

                                             MEMBER
                                             PHIL ST. LOUIS

                                             /s/ PHIL ST. LOUIS
                                             --------------------------

STATE OF FLORIDA       )
                       )
COUNTY OF BROWARD      )

        The foregoing was acknowledged before me this 18 day of November, 2003,
by PHIL ST. LOUIS, an individual residing in the state of Florida G who is
personally known to me or G who produced __ as identification.

                                             Notary Public
                                             My commission expires:

[SEAL]                                       /s/ HELAINE S. RAUCHER
                                            ------------------------------------
                                                    1/30/2007

                                       17
<PAGE>

                       COUNTERPART SIGNATURE PAGES FOR THE
               OPERATING AGREEMENT OF PHILBUILT DEVELOPMENT, LLC.
                            AND SCHEDULE AA@ THERETO

        The signature below evidences the undersigned's agreement and consent to
be bound by all terms, covenants, and conditions as set forth in the Philbuilt
Development, LLC Operating Agreement and Schedule AA@ thereof, to which this
counterpart signature page is attached.

                                             MEMBER
                                             PHIL ST. LOUIS

                                             /s/ PHIL ST. LOUIS
                                             --------------------------

STATE OF FLORIDA       )
                       )
COUNTY OF PALM BEACH   )

        The foregoing was acknowledged before me this 5 day of January, 2004, by
PHIL ST. LOUIS, an individual residing in the State of Florida G who is
personally known to me or G who produced [ILLEGIBLE] as identification.

                                             Notary Public
                                             My commission expires:

                                             /s/ [ILLEGIBLE]

                                                            [SEAL]

                                       17
<PAGE>

                       COUNTERPART SIGNATURE PAGES FOR THE
               OPERATING AGREEMENT OF PHILBUILT DEVELOPMENT, LLC.
                            AND SCHEDULE AA@ THERETO

        The signature below evidences the undersigned's agreement and consent to
be bound by all terms, covenants, and conditions as set forth in the Philbuilt
Development LLC Operating Agreement and Schedule AA@ thereof, to which this
counterpart signature page is attached.

                                             MEMBER
                                             THE DAVID L. RAUCHER
                                             REVOCABLE TRUST

                                             /s/ HELAINE S. RAUCHER, TRUSTEE
                                             -------------------------------
                                             By: Helaine Raucher, Trustee

STATE OF FLORIDA       )
                       )
COUNTY OF BROWARD      )

         The foregoing was acknowledged before me this 18 day of November, 2003,
by HELAINE RAUCHER, TRUSTEE for The David L. Raucher Revocable Trust, an
individual residing in the State of Florida and has acknowledged that she is the
authorized trustee for The David L. Raucher Revocable Trust G who is personally
known to me or G who produced Driver License as identification.

                                             Notary Public
                                             My commission expires:

[SEAL]                                       /s/ VIRGINIA MARY MOORE
                                             ----------------------------------
                                                    7/6/2007

                                       18

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