Document:

EXHIBIT 10.49

                      LOAN AND NOTE MODIFICATION AGREEMENT
                    ----------------------------------------

         THIS LOAN AND NOTE  MODIFICATION  AGREEMENT  (this  "Agreement")  dated
effective  the __ day of  September,  2002,  between Boca First  Capital LLLP, a
Florida  limited   liability   limited   partnership  (the  "Lender"),   Capitol
Communities  Corporation,   a  Nevada  corporation  ("Borrower"),   and  Capitol
Development of Arkansas,  Inc., an Arkansas corporation (referred to as "CDA" or
"Mortgagor"), a wholly owned subsidiary of Borrower.

         A. Borrower  entered into a Business Loan  Agreement  with Lender dated
April 26, 2002 (the "Loan  Agreement"),  pursuant to which Lender Agreed to loan
to  Borrower  and  Borrower  agreed  to  repay  any  money  borrowed  of  up  to
$3,000,000.00 from Lender, and Borrower executed a Note in favor of Lender dated
April 26, 2002 (the "Note"),  evidencing  such  obligation to repay and Borrower
granted to Lender a security  interest in all of the outstanding 1,000 shares of
stock of the Mortgagor (the "Shares") to secure such debt. The terms of the Note
were modified by a Note Modification  Agreement  executed by Borrower and Lender
effective May 15, 2002 (the "Modification Agreement").

         B. Borrower  desires now to modify the terms of the Loan  Agreement and
Note and execute this  Agreement to evidence  such  modification  and Lender has
agreed to certain modification of the terms of the Loan Agreement and Note.

         C.  Borrower  has  requested  Lender  increase  the line of credit from
$3,000,000.00  to  $4,000,000.00  and Lender  has  agreed to the loan  increase;
subject to additional  collateral  being  pledged or assigned to secure  payment
thereof and extend the maturity date one year.

         D. Borrower has agreed it shall cause the Mortgagor, to grant to Lender
a mortgage in certain real property which  described on Schedule "A" (consisting
of four (4) pages),  affixed  hereto and by this  reference  made a part hereof,
LESS AND EXCEPT the lands  described  on  Schedule  "B"  (consisting  of one (1)
page),  affixed  hereto  and by this  reference  made a part  hereof  (the "Real
Property"),  pursuant to the terms of that Mortgage which is marked Exhibit "C",
affixed hereto and by this reference made a part hereof (the "Mortgage").

<PAGE>

         E.  Borrower  has  agreed  it shall  cause  CDA to  pledge  its  35.16%
membership  interest in TradeArk  Properties,  ("TradeArk  Interest") a Michigan
limited liability company to Lender.

         E.  Borrower  has  agreed it shall  cause CDA to pledge  its rights and
interest  in  two  (2)  promissory  notes  executed  by  West  Maumelle  Limited
Partnership,  an Arkansas  limited  partnership in the amounts of  $1,070,000.00
(and modified September 22, 2002) and $1,000.000.00 due respectively October 31,
2002, and March 26, 2005 (the "Maumelle Notes").

         NOW, THEREFORE, for good and valuable consideration be it agreed by and
between Lender, Borrower and CDA as follows:

         1.   Lender  and  Borrower  agree to increase  the line of credit  from
$3,000,000.00 to $4,000,000.00  and to extend the maturity date from November 1,
2003 to November 1, 2004.

         2.   The Mortgagor and Borrower hereby deliver to Lender the   Mortgage
and thereby  grant to Lender a security  interest in the Real Property to secure
the payment of the obligations due to Lender from Borrower pursuant to the Note,
the  Modification  Agreement,  the Loan  Agreement  and the  Mortgage.  Promptly
following the execution of this  Agreement,  Borrower  shall provide to Lender a
paid ALTA Loan Policy in the amount of $4,000,000.00 insuring to Lender that the
Mortgage  constitutes  a valid  binding  and  enforceable  first  priority  lien
covering the Real Property,  issued by the Chicago Title Company,  or such other
title company as Lender shall approve.

         3.   CDA and Borrower  shall execute and deliver to Lender a Collateral
Security  Agreement  (TradeArk  Membership  Interest  Pledge  )  pledging  CDA's
TradeArk Interest to Lender,  to be held in an escrow account,  as collateral to
secure payment of the obligations.  Notwithstanding,  Lender agrees that CDA and
Borrower  may sell  and  assign  its  TradeArk  Interest  and  substitute  other
collateral equal to such interest,  upon the approval of Boca First, which shall
not be unreasonably withheld.

         4.   CDA and Borrower shall  execute and deliver to Lender a collateral
Security  Agreement (Note Pledge) pledging CDA's Maumelle Notes to Lender, to be
held in an escrow account, as collateral to secure payment of the obligations.

         5.  Borrower, CDA and Lender authorize the law offices of Brandon-Brown
P.L. to act as escrow agent for the pledged collateral, with addresses at 900 N.
Federal Highway,  Suite 410, Boca Raton, Florida to hold collateral and disburse

<PAGE>

them in accordance with the terms of the Business Loan Agreement, the Promissory
Note, Stock Pledge Agreement, the TradeArk Membership Interest Pledge Agreement,
and the W. Maumelle Note Pledge Agreement,  and any amendments  thereof.  Escrow
Agent's duties or liabilities under these Agreements are to (a) hold the subject
matter of the escrow until the parties  mutually  agree to its  disbursement  or
until  issuance  of a court  order or decision  of  arbitrator  determining  the
parties'  rights  regarding the escrow or (b) deposit the subject  matter of the
escrow with the clerk of the circuit court having jurisdiction over the dispute.
Upon  notifying  the parties of such action,  Escrow Agent will be released from
all liability except for the duty to account for items previously  delivered out
of escrow.  In any suit or  arbitration  in which  Escrow  Agent is made a party
because of acting as agent  hereunder or  interpleads  the subject matter of the
escrow,  Escrow Agent will recover  reasonable  attorneys' fees and costs at all
levels,  with  such  fees  and  costs  to be paid  from  the  escrowed  funds or
equivalent  and  charged  and  awarded  as court or other  costs in favor of the
prevailing  party. The parties agree that Escrow Agent will not be liable to any
person for mis-delivery to Borrower, CDA or Lender of escrowed items, unless the
mis-delivery  is due to Escrow Agent's  willful breach of this Contract or gross
negligence.

         6.   All  other terms of the  Note,  as  modified  by the  Modification
Agreement, and all other terms of the Loan Agreement, and such other instruments
(such as the  Collateral  Security  Agreement  (Stock  Pledge)  as may have been
executed  pursuant to the Loan  Agreement,  except as amended by this Agreement,
shall  hereafter  remain  in full  force  and  effect.  All  terms of any  other
instruments executed by the parties hereto, except as amended by this Agreement,
shall likewise hereafter remain in full force and effect.

                                         Borrower:
                                         Capitol Communities Corporation

                                         By: /s/ Michael G. Todd
                                             -------------------
                                         Name:  Michael G. Todd
                                         Title: President

                                         Mortgagor:
                                         Capitol Development of Arkansas, Inc.

                                         By: /s/ Michael G. Todd
                                             -------------------
                                         Name:  Michael G. Todd
                                         Title: President

                                         Lender:
                                         Boca First Capital LLL
                                         By: Addison Capital Group LLC,
                                         General Partner

                                         By: /s/Kenneth Richardson
                                             ---------------------
                                         Name: Kenneth Richardson
                                         Title: ManagerEXHIBIT 10.50

                          COLLATERAL SECURITY AGREEMENT
                            (PROMISSORY NOTES PLEDGE)

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

         WHEREAS,  Pledgor  is the owner  and  holder  of two  promissory  notes
executed  by West  Maumelle  Limited  Partnership  (collectively  the  "Maumelle
Notes"),  an Arkansas limited  liability  company on March 26, 2002,  payable as
follows:  Promissory Note 1 has a face value of  $1,070,000.00  with an interest
rate of 6.25% per  annum,  with the  entire  unpaid  principal  and all  accrued
interest  due in full  September  22,  2002.  Promissory  Note 1 was modified on
September  22,  2002,  to extend the  maturity  date to October  31, 2002 for an
extension fee of $10,000.00.

         Promissory  Note 2 has a face value of  $1,000,000.00  with an interest
rate of 6.25% per  annum,  with the  entire  unpaid  principal  and all  accrued
interest due in full March 26, 2005.

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

         WHEREAS, the Pledgor has agreed to pledge to Pledgee the Maumelle Notes
as security for the Modified Note;

         NOW,  THEREFORE,  in consideration of the premises and as an inducement
to the Pledgee to lend the  principal  sum of FOUR  MILLION and NO/100s  DOLLARS
($4,000,000.00) to Pledgor and in consideration thereof, the Pledgor does hereby
assign,  transfer,  set over and pledge to Pledgee the Maumelle  Notes,  with an
aggregate  face value of $2,070,000  (herein  referred as the "Pledged  Maumelle
Notes"), and the Pledgee and the Pledgor hereby agree as follows:

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

         2.   Possession  of the  Pledged Maumelle Notes.  The Pledged  Maumelle
Notes shall,  immediately upon the execution of this Pledge, be delivered to the
escrow  agent  named in the  Modified  Note,  free and  clear of all  liens  and
encumbrances and assigned and endorsed to Pledgee.  Pledgee shall be entitled to
receive and have delivered to it, any payments,  except for extension fees, made
under the terms of the  Pledged  Maumelle  Notes,  with any such  payments  made
hereunder  applied first to the interest accruing upon the terms of the Note and
Business Loan Agreement,  and any amendments thereof, next to charges, costs, or

<PAGE>

expenses then due under this Security  Agreement or any other loan documents and
the balance, if any, to principal.

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

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

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

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

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

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

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

                                       2
                         Collateral Security agreement
<PAGE>

liability in case of failure of the purchaser to take up and pay for the Pledged
Maumelle Notes so sold. Upon the sale of any Pledged  Maumelle Notes  hereunder,
after deducting all costs and expenses of collection,  Pledgee,  or its nominee,
shall apply the residue of the proceeds of the sale, or sales,  so made first to
the payment of any sums Pledgee may pay, or incur, in enforcing its rights under
the Note and/or this  Pledge,  and second to the payment of any sums the Pledgor
may be, or become  liable to pay under any of those  instruments,  and shall pay
the excess, if any, to the Pledgor.  No purchaser at such sale, or sales, except
the Pledgee,  or its nominee,  shall be responsible  for the  application of the
purchase money.

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

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

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

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

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

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

                                       3
                         Collateral Security Agreement
<PAGE>

independent  of this  instrument,  concerning  this, or any of the  liabilities,
obligations, indebtedness, or collateral security involved in the said Note.

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

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

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

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

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

   /s/ Ray Baptista                        /s/ Michael G. Todd
   ----------------                        ------------------------------
       Ray Baptista                        By: Michael G. Todd, President

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

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

                               Notary on Next Page

                                       4
                         Collateral Security Agreement
<PAGE>

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

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

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

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

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

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

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                         Collateral Security Agreement

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