Document:

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                                                                EXHIBIT 10.1

                                    AGREEMENT

         THIS AGREEMENT (the "Agreement"), dated as of July 26, 2001, is by and
among AFFINITY TECHNOLOGY GROUP, INC., a Delaware corporation ("Affinity"),
MULTI FINANCIAL SERVICES, INC., a Delaware corporation and a wholly-owned
subsidiary of Affinity ("MFS"), and HOMEGOLD, INC., a South Carolina corporation
("HomeGold").

                              BACKGROUND STATEMENT

         Surety Mortgage, Inc., a Delaware corporation and a wholly-owned
subsidiary of MFS ("Surety"), engages in two lines of business: (i) the
processing and underwriting of mortgage loans for community banks and other
customers from applications generated primarily through Affinity's mortgage
Automated Loan Machines(R) and through referrals by certain parties under
certain contracts, which business currently is conducted by Surety out of its
offices located on Hampton Street in Columbia, South Carolina (the "Hampton
Street Operations"); and (ii) the processing of conforming mortgage loans for
HomeGold pursuant to the Joint Venture Agreement, dated as of December 18, 2000,
between Surety and HomeGold (the "Joint Venture Agreement"), which business
currently is conducted by Surety out of HomeGold's offices located in Lexington,
South Carolina (the "HomeGold Mortgage Operations"). HomeGold desires to develop
the capability to process its own conforming mortgage loans, and Affinity has
agreed to cooperate with HomeGold in its orderly transition into the conforming
loan business in consideration of, among other things, HomeGold's agreement to
loan Affinity $1,000,000 upon the terms and conditions of this Agreement.

                             STATEMENT OF AGREEMENT

         NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereby agree as
follows:

         1.       Loan Agreement.

                  (a) Loan. HomeGold hereby agrees to loan to Affinity the sum
of $1,000,000, to be advanced by HomeGold to Affinity as follows: (i) the sum of
$500,000 shall be advanced by HomeGold to Affinity immediately upon execution of
this Agreement; and (ii) the remaining sum of $500,000 shall be advanced by
HomeGold to Affinity in five (5) equal monthly installments of $100,000 on the
15th day of each month during the remainder of 2001, with the first such advance
to be made on August 15, 2001. Such loan shall bear interest at the rate of 8%
per annum and shall be evidenced by a note in substantially the form as attached
hereto as EXHIBIT A (the "Note").

                  (b) Collateral. To secure the payment of all principal and
interest outstanding under the Note, MFS shall pledge to HomeGold all of the
outstanding shares of capital stock of Surety held by MFS (the "Surety Shares"),
in accordance with the Pledge Agreement in substantially the form as attached
hereto as EXHIBIT B.

                  (c) Repayment Terms. All outstanding principal and interest
under the Note shall become payable in full by Affinity on December 31, 2001.
Notwithstanding the foregoing, Affinity may elect, in its sole and absolute
discretion, to cause MFS to assign, transfer and convey to HomeGold all of MFS's
right, title and interest in the Surety Shares in full and complete satisfaction
of all of Affinity's obligations under the Note, and upon the assignment,
transfer and conveyance by MFS to HomeGold of the Surety Shares pursuant to this
SECTION 1(C), the Note shall be cancelled, marked as "PAID IN FULL," and
returned to Affinity.

                  (d) Prepayment. Affinity may prepay all or any part of the
principal and interest outstanding under the Note at any time without penalty.
In addition, Affinity shall use the cash proceeds generated through the sale of
Surety's Hampton Street Operations, if such sale shall occur, to repay, to the
extent possible, the outstanding principal and accrued and unpaid interest under
the Note, and such repayment shall be made as promptly as possible following
such sale.

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         2.       Other Agreements.

                  (a) Grant of Option. MFS hereby grants to HomeGold the option
to purchase from MFS, for aggregate consideration of One Dollar ($1.00), all of
MFS's right, title and interest in the Surety Shares. Such option may be
exercised by HomeGold if, and only if, (i) Affinity shall not cause MFS to
assign to HomeGold the Surety Shares in payment of Affinity's obligations under
the Note, as contemplated by the second sentence of SECTION 1(C) (ii) HomeGold
shall have advanced the full amount of the Loan pursuant to SECTION 1(A) above
and (iii) HomeGold shall not foreclose on the Surety Shares pursuant to the
Pledge Agreement. If exercisable, this option shall be deemed to have been
exercised by HomeGold on January 1, 2002 without any notice or further action by
HomeGold.

                  (b) Employment Agreement. Affinity agrees to use its
commercially reasonable efforts to cause Donna L. Childress, the President of
Surety, to enter into an employment agreement with HomeGold that becomes
effective on January 1, 2002. Such agreement shall have such terms and
conditions as may be mutually agreed upon by Affinity, HomeGold and Ms.
Childress.

                  (c) Joint Venture Agreement. Each party hereby covenants and
agrees that it shall not terminate the Joint Venture Agreement prior to December
31, 2001 and that it shall use its commercially reasonable efforts to maximize
the amount of business done by Surety through its HomeGold Mortgage Operations.

                  (d) Operation of Surety. At any time prior to the delivery by
MFS of the Surety Shares to HomeGold pursuant to SECTION 1(C) or SECTION 2(A),
MFS shall retain all of the rights of ownership of the Surety Shares and may
cause Surety to sell its Hampton Street Operations and, subject to SECTION 1(D),
to distribute to MFS the proceeds of such sale and any and all of Surety's
assets; provided, however, that (i) unless and until the Note has been paid in
full, MFS shall not be permitted to cause Surety to distribute to MFS any of the
assets used by Surety in the Hampton Street Operations other than undeployed
inventories, cash and other assets not directly related to the Hampton Street
Operations, and further provided that, no distribution shall be made which would
cause Surety to fail to meet any net worth or other requirement of any of its
licenses or any agreement to which it is a party; and (ii) in no event shall
Surety be permitted to distribute or transfer the mortgage brokerage licenses
and permits currently held by Surety. After the date hereof, neither Affinity
nor MFS shall take any action to sell the Surety Shares or cause Surety to issue
additional shares of its capital stock to any person other than MFS.
Notwithstanding any provision in this Agreement to the contrary, without the
prior written consent of HomeGold, Affinity may not sell the Hampton Street
Operations if such sale will generate gross proceeds of less than $1 million.

                 (e) Non-Inducement or Hiring of Employees. After December 31,
2001, neither Affinity nor MFS shall, for itself or on behalf of any other
person, solicit or induce any employee of Surety who is engaged in the HomeGold
Mortgage Operations to leave his or her employment with Surety, including, but
not limited to, any individual employed by Surety in the HomeGold Mortgage
Operations conducted by Surety as of the date hereof. Any employee who has not
been employed by Surety for a period of six consecutive months shall no longer
be considered an employee of Surety for purposes of this SECTION 2(E).

                 (f) Working Capital Adjustment. If MFS shall deliver the Surety
Shares to HomeGold pursuant to SECTION 1(C) or SECTION 2(A), the parties agree
to cooperate in good faith to prepare a balance sheet of Surety as of the
effective date of such delivery, which balance sheet shall reflect all the
current assets, as defined by GAAP, except for inventory and intercompany
accounts, of Surety as of such date (the "Surety Assets") and all current
liabilities, except for intercompany accounts, of Surety as of such date (the
"Surety Liabilities"). Upon the delivery of the Surety Shares to HomeGold
pursuant to SECTION 1(C) or SECTION 2(A), HomeGold shall pay to Affinity, by
wire transfer of immediately available funds, the amount by which the Surety
Assets exceed the Surety Liabilities (if the Surety Assets exceed the Surety
Liabilities), and Affinity shall pay to HomeGold, by wire transfer of
immediately available funds, the amount by which the Surety Liabilities exceed
the Surety Assets (if the Surety Liabilities exceed the Surety Assets). All
intercompany payables and receivables of Surety shall be cancelled without
consideration upon transfer of the Surety Shares to HomeGold.

         3.       Representations and Warranties of the Parties.

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                  (a) Valid Agreement. Each of the parties represents and
warrants to the other parties: (i) that this Agreement has been duly authorized
by all necessary corporate action, (ii) that this Agreement has been duly and
validly executed and delivered by it and (iii) that this Agreement constitutes
its valid and binding agreement, enforceable against it in accordance with its
terms.

         4.       Representations and Warranties of Affinity and MFS.  Affinity
and MFS represent, warrant, and agree as follows:

                  (a) Surety Shares. Affinity and MFS hereby represent and
warrant to HomeGold: (i) that Affinity is the sole record and beneficial owner
of all of the outstanding shares of MFS, and that MFS is the sole record and
beneficial owner of the Surety Shares; (ii) that the Surety Shares constitute
all the issued and outstanding shares of capital stock of Surety, and that there
are no options, warrants or other agreements of Surety to issue to any party any
shares of its capital stock or any securities convertible into capital stock;
and (iii) that MFS owns the Surety Shares free of any claims, mortgages,
pledges, liens, encumbrances and security interests of every nature whatsoever
except those granted to HomeGold hereunder, and that no consent or approval of
any governmental or regulatory authority, or of any securities exchange, which
has not been obtained, was or is necessary to the validity of the pledge of the
Surety Shares to HomeGold pursuant to this Agreement.

                  (b) Compliance with Law; Authorizations. Neither Affinity, MFS
nor Surety has received any notice of any violation of or non-compliance with
any law, rule, regulation, order, ordinance or requirement applicable to
Surety's operations and no such violation or non-compliance exists. Surety owns,
holds, possesses or lawfully uses in the operation of its business all licenses,
permits, rights, applications, filings, registrations and other authorizations
necessary to conduct Surety's business ("Authorizations") free and clear of all
liens, charges, restrictions and encumbrance and in compliance with laws and
regulations of any governmental entities. None of such Authorizations will be
adversely affected by consummation of the transactions contemplated hereby
except that all or certain of such Authorizations require the consent of the
issuer of such Authorization in the event of a change of control with respect to
Surety; the parties agree to cooperate in attempting to obtain any such
necessary consents. All such Authorizations are renewable by their terms or in
the ordinary course of business without the need to comply with any special
qualification procedures or to pay any amounts other than routine filing fees.

                  (c) Taxes. Surety has filed or caused to be filed, within the
time and in the manner prescribed by law, all federal, state, local and foreign
tax returns and tax reports required to be filed by Surety. Such returns and
reports are accurate and complete in all material respects. All federal, state,
local and foreign income, payroll, profits, franchise, sales, use, occupancy,
excise and other taxes and assessments (including interest and penalties)
reflected on such returns payable by, or due from, Surety on or prior to the
date hereof have been fully paid.

                  (d) No Breach. The execution, delivery and performance of this
Agreement by Affinity and MFS does not and will not violate, conflict with or
result in the breach of any term, condition or provision of, or require the
consent of any other person under:

                           (i) any existing law, ordinance, or governmental rule
                  or regulation to which Affinity, MFS or Surety is subject;

                           (ii) any judgment, order, writ, injunction, decree or
                  award of any court, arbitrator or governmental or regulatory
                  official, body or authority which is applicable to Affinity,
                  MFS or Surety; or

                           (iii) any mortgage, indenture, agreement, contract,
                  commitment, lease, plan, Authorization (as defined in SECTION
                  4(B)), or other instrument, document or understanding, oral or
                  written, to which Affinity, MFS or Surety is a party, except
                  for Surety's warehouse line with Regions Bank.

         No authorization, approval or consent of and no registration or filing
with, any governmental or regulatory official, body or authority is required in
connection with the execution, delivery or performance of this Agreement by
Affinity and MFS.

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                  (e) Financial Statements. Affinity has delivered to HomeGold
copies of Surety's financial statements as of December 31, 2000 (collectively,
the "Financial Statements"). The Financial Statements have been prepared in
accordance with generally accepted accounting principles ("GAAP") consistently
applied throughout the periods involved (except as otherwise indicated in the
notes thereto), and are true and correct in all material respects, and present
fairly, in all material respects, the financial condition of Surety as at the
dates of such balance sheets and the results of operations for such respective
periods then ended.
                  Except as shown on the balance sheets of Surety dated as of
May 31, 2001 (the "Latest Financial Statements"), Surety does not have any
liabilities or obligations, either direct or indirect, matured or unmatured or
absolute, contingent or otherwise ("Liabilities"), except current Liabilities
incurred in the ordinary course of business.

                  (f) Adverse Changes. Since May 31, 2001, there has been (a) no
material adverse change in (i) the assets, liabilities or financial condition of
Surety from that set forth in the Latest Financial Statements or (ii) the
condition (other than financial) or business of Surety, (b) no damage,
destruction or loss, whether or not covered by insurance, (c) no labor dispute,
other than routine grievances by individual employees, or (d) any other claim or
obligation incurred which would adversely affect the business of Surety.

                  (g) No Litigation. No litigation, including any arbitration,
investigation or other proceeding of or before any court, arbitrator or
governmental or regulatory official, body or authority is pending or, to the
best knowledge of Affinity and MFS, threatened against Surety nor does Affinity
or MFS know of any basis that would make any such litigation, arbitration,
investigation or proceeding reasonably likely to occur, the result of which
could have a materially adverse affect on Surety or its business.

                  (h)Third Party Consents.  The Surety Shares may be conveyed,
transferred and assigned by MFS to HomeGold without the consent of any third
party.

                  (i) Interim Operations. From and after May 31, 2001, Surety
has operated and carried on its business in the ordinary course consistent with
prior practice. Specifically, without limitation, Surety has refrained from
granting any wage, salary or other compensation increase (except for letter
agreement date July, 2001 with Donna L. Childress) and refrained from adopting
any new or expanded employee benefit plan.

                  (j) Omissions. No representation or warranty by Affinity or
MFS in this Agreement, or any other information or item to be furnished to
HomeGold in connection with transactions contemplated herein, contains nor will
contain any untrue statement of a material fact, nor omits nor will omit to
state a material fact necessary to make statements contained therein not be
misleading.

                  (k) Effective Representations. All the foregoing
representations and warranties are made by Affinity and MFS with the knowledge
and expectation that HomeGold, notwithstanding any personal inspection or
examination of the documents, properties or other items described herein, is
entering into the transactions described or contemplated herein in full reliance
on Affinity and MFS representations and warranties, and all of said
representations and warranties are made as of the date hereofand shall
specifically survive the closing of this Agreement.

         5.       Representations and Warranties of HomeGold. HomeGold
represents as follows:

                   (a) No Breach. The execution, delivery and performance of
this Agreement by HomeGold does not and will not violate, conflict with or
result in the breach of any term, condition or provision of, or require the
consent of any other person under:

                           (i) any existing law, ordinance, or governmental rule
                  or regulation to which HomeGold is subject;

                           (ii) any judgment, order, writ, injunction, decree or
                  award of any court, arbitrator or governmental or regulatory
                  official, body or authority which is applicable to HomeGold;
                  or

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                           (iii) any mortgage, indenture, agreement, contract,
                  commitment, lease, plan, Authorization (as defined in SECTION
                  4(B)), or other instrument, document or understanding, oral or
                  written, to which HomeGold is a party, or by which the assets
                  of HomeGold may be affected.

         No authorization, approval or consent of and no registration or filing
with, any governmental or regulatory official, body or authority is required in
connection with the execution delivery or performance of this Agreement by
HomeGold.

                   (b) Omissions. No representation or warranty by HomeGold in
this Agreement, or any other information or item to be furnished to Affinity or
MFS in connection with transactions contemplated herein, contains nor will
contain any untrue statement of a material fact, nor omits nor will omit to
state a material fact necessary to make statements contained therein not be
misleading.

                   (c) Accredited Investor. HomeGold is an "accredited
investor", as that term is defined in Regulation D promulgated by the U.S.
Securities and Exchange Commission. HomeGold acknowledges that the Surety Shares
have not been registered under federal or state securities laws and are
therefore restricted securities under such securities laws.

         6.       Interim Operations.

                  (a) Access. From the date hereof until December 31, 2001,
during reasonable business hours, Affinity, MFS and Surety will permit HomeGold
and its proper agents, to have access to the premises on which Surety conducts
its business, and to all its books, records and personnel. Surety will furnish
HomeGold such information concerning its business as HomeGold shall reasonably
request. Surety will provide to HomeGold copies of all financial information,
contracts, and other written documents related to its business. HomeGold shall
be permitted to contact any of lenders to discuss the payoff, refinance or
assumption of any of Surety's debt. The access rights are referred to as "Due
Diligence". During the Due Diligence period, HomeGold shall be entitled to
inspect all assets to be purchased and, when reasonable, provide for third party
inspection of such assets.

                  (b) Confidentiality. HomeGold will maintain in confidence all
information received by it in connection with its Due Diligence or otherwise
acquired from Affinity, MFS or Surety in connection with the transactions
contemplated hereby and will not disclose any confidential information to any
third party or use any confidential information for any purpose except as in the
performance of the understandings hereunder, or otherwise with the written
consent of Affinity or MFS. This restriction does not apply to information
generally known in the public or which is not considered confidential by
Affinity.

                  (c) Conduct of Business. From the date hereof and until
December 31, 2001, Surety will use commercially reasonable efforts to conduct
its business in a reasonable and prudent manner in accordance with past
practices, will engage in no transaction out of the ordinary course of business,
and will use commercially reasonable efforts to preserve its existing business
organization and relation with its employees, customers, suppliers and others
with whom it has a business relationship, will not incur any incur any long term
debt that would not be treated as a Current Liability pursuant to SECTION 2(F)
above and will maintain and comply with all Authorizations (as defined in
SECTION 4(B)).

         7.        Indemnification.  The liability of any party in respect of a
breach of a representation, warranty, covenant, indemnity or agreement contained
in or arising in connection with this Agreement shall be governed by the terms
of this Section.

                  (a) Indemnification by Affinity and MFS. Affinity and MFS
agree to indemnify and hold HomeGold harmless against and from any and all
taxes, claims, liabilities, damages, losses, costs and expenses, including
without limitation reasonable attorneys' fees and other expenses of defending
any actions or claims, amounts of judgments and amounts paid in settlement
(collectively, all of the foregoing being called "Costs"), incurred by HomeGold
or Surety and arising out of, or attributable to (i) any breach of any
representation, warranty or covenant made by Affinity or MFS herein; (ii) any
claim, known or unknown, arising out of, or by virtue of, or based upon Surety's
business and operations prior to the December 31, 2001 which is not reflected in
the latest Financial Statements or in the Surety Liabilities, as defined in
SECTION 2(F) above or; (iii) any nonfulfillment of any

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agreement of Affinity or MFS hereunder. Affinity and MFS jointly and severally
shall pay HomeGold upon demand the amount to be indemnified, subject to the
following: HomeGold shall, within fifteen (15) days after the service of process
in a lawsuit or after it receives notice from any third party that such party
intends to assert a claim which could result in indemnification hereunder, give
Affinity and MFS notice of such claim. If Affinity and MFS has no good faith
defense to such third party claim, Affinity and MFS shall pay such claim
forthwith or reimburse HomeGold if HomeGold has paid same. Otherwise, Affinity
and MFS shall have the right to assume the defense of any such claim or lawsuit
asserted against HomeGold or Surety by a third party, with counsel reasonably
satisfactory to HomeGold, and in such event, Affinity and MFS will not be liable
to HomeGold for any further legal or other expenses incurred by HomeGold in
connection with the defense thereof, other than the reasonable cost of
investigation or assistance required by HomeGold. HomeGold may, however,
participate actively, at its sole expense, in any such lawsuit. If Affinity and
MFS so assumes the defense of any such claim or lawsuit, all costs of the
defense thereof shall thereafter be borne by Affinity and MFS, and Affinity and
MFS shall have the authority to compromise and settle such claim or lawsuit or
to appeal (or cause HomeGold or Surety to appeal) any adverse judgment or ruling
with the cost of such appeal to be paid by Affinity and MFS; provided, however,
that if any such compromise or settlement would have an adverse effect on
HomeGold or Surety, Affinity and MFS shall have the authority to compromise or
settle such claim or lawsuit only with the written consent of HomeGold.
HomeGold, Affinity and MFS will cooperate fully with each other with respect to
discovery, inquiries or investigations in connection with any claim or lawsuit
for which indemnity is sought hereunder.

                  (b) Indemnification by HomeGold. HomeGold agrees to indemnify
and hold Affinity and MFS harmless against any and all Costs, as defined in
SECTION 7(A), incurred by Affinity and MFS and arising out of or attributable to
(i) any breach of any representation, warranty or covenant made by HomeGold
herein, (ii) any nonfulfillment of any agreement of HomeGold hereunder, or (iii)
any claim arising out of or by virtue of or based upon operation of the Surety's
business after December 31, 2001, except to the extent that such claim is one as
to which Affinity and MFS is required to indemnify HomeGold pursuant to this
Agreement . HomeGold shall pay Affinity and MFS upon demand the amount to be
indemnified, subject to the following: Affinity and MFS shall, within fifteen
(15) days after the service of process in a lawsuit or after they receive notice
from any third party that such party intends to assert a claim which could
result in indemnification hereunder, give HomeGold notice of such claim. If
HomeGold has no good faith defense to such third party claim, HomeGold shall pay
such claim forthwith or reimburse Affinity and MFS if Affinity and MFS has paid
same. Otherwise, HomeGold shall have the right to assume the defense of any such
claim or lawsuit asserted against Affinity and MFS by a third party, with
counsel reasonably satisfactory to Affinity and MFS, and in such event, HomeGold
will not be liable to Affinity and MFS for any further legal or other expenses
incurred by Affinity and MFS in connection with the defense thereof, other than
the reasonable cost of investigation or assistance required by HomeGold.
Affinity and MFS may, however, participate actively, at their sole expense, in
any such lawsuit. If HomeGold so assumes the defense of any such claim or
lawsuit, all costs of the defense thereof shall thereafter be borne by HomeGold,
and HomeGold shall have the authority to compromise and settle such claim or
lawsuit or to appeal (or cause Affinity and MFS to appeal) any adverse judgment
or ruling with the cost of such appeal to be paid by HomeGold; provided,
however, that if any such compromise or settlement would have an adverse effect
on Affinity and MFS, HomeGold shall have the authority to compromise or settle
such claim or lawsuit only with the written consent of Affinity and MFS.
HomeGold, Affinity and MFS will cooperate fully with each other with respect to
discovery, inquiries or investigations in connection with any claim or lawsuit
for which indemnity is sought hereunder.

         8.       Survival of Representations, Warranties and Agreements. The
representations, warranties and agreements contained herein shall survive the
transfer of the Surety stock to HomeGold and the repayment and cancellation of
the Note.

         9.       Miscellaneous.

                  (a) Amendment and Modification. This Agreement may be amended,
modified or supplemented only by written agreement of the parties hereto. Any
failure of any of the parties to comply with any obligation, representation,
warranty, covenant, agreement or condition herein may be waived by the party
entitled to the benefits thereof only by a written instrument signed by the
party granting such waiver, but such waiver or failure to insist upon strict
compliance with such obligation, representation, warranty, covenant, agreement
or condition shall not operate as a waiver of, or estoppel with respect to, any
subsequent or other failure.

<PAGE>

                  (b) Notices. All notices and other communications hereunder
shall be in writing and shall be deemed given when delivered by hand, by
overnight delivery service or by facsimile transmission (with confirmed receipt)
or three (3) business days after being mailed by registered or certified mail
(return receipt requested), postage prepaid, to the parties at the following
addresses (or at such other address for a party as shall be specified by like
notice; provided that the notices of a change of address shall be effective only
upon receipt thereof):

                  If to Affinity or MFS:

                  Affinity Technology Group, Inc.
                  1201 Main Street
                  20th Floor
                  Columbia, South Carolina 29201
                  Telecopy: (803) 255-4350
                  Attention: Joseph A. Boyle, President and
                             Chief Executive Officer

                  If to HomeGold:

                  HomeGold, Inc.
                  3901 Pelham Road
                  Greenville, South Carolina 29615
                  Telecopy: (803) 996-2138
                  Attention: Ronald J. Sheppard, President and
                             Chief Executive Officer

                  (c) Assignment. This Agreement shall be binding upon and inure
to the benefit of the parties hereto and their respective successors and
permitted assigns, but neither this Agreement nor any of the rights, interests
or obligations hereunder shall be assigned by any party hereto without the prior
written consent of the other party, nor is this Agreement intended to confer
upon any other person except the parties hereto any rights or remedies
hereunder.

                  (d) Governing Law.  The execution, interpretation and
performance of this Agreement shall be governed by the internal laws and
judicial decisions of the State of South Carolina.

                  (e) Facsimile Signatures; Counterparts. This Agreement may be
executed by facsimile signature and in one or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and
the same instrument.

                  (f) Entire Agreement. This Agreement, including the Exhibits
hereto, embody the entire agreement and understanding of the parties hereto in
respect of the subject matter hereof. This Agreement supersedes all prior
agreements and understandings between the parties with respect to the
transactions contemplated by this Agreement, provided that the Joint Venture
Agreement shall continue in full force and effect in accordance with the terms
thereof.

         IN WITNESS WHEREOF, Affinity, MFS and HomeGold have caused this
Agreement to be executed by their respective duly authorized officers as of the
date first above written.

                                   AFFINITY TECHNOLOGY GROUP, INC.

                                   By:   _____________________________
                                   Name: _____________________________
                                   Title:_____________________________

<PAGE>

                                   MULTIFINANCIAL SERVICES, INC.

                                   By:   _____________________________
                                   Name: _____________________________
                                   Title:_____________________________

                                   HOMEGOLD, INC.

                                   By:   _____________________________
                                   Name: _____________________________
                                   Title:_____________________________

<PAGE>

                                    EXHIBIT A

         THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
         AMENDED, OR ANY STATE SECURITIES LAWS. THIS NOTE HAS BEEN ACQUIRED FOR
         INVESTMENT AND NOT WITH A VIEW TO DISTRIBUTION OR RESALE, AND MAY NOT
         BE SOLD, MORTGAGED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED
         WITHOUT AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF
         1933, AS AMENDED, AND ANY APPLICABLE STATE SECURITIES LAWS, OR
         AVAILABILITY OF AN EXEMPTION FROM THE REGISTRATION PROVISIONS OF THE
         SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE SECURITIES
         LAWS.

                         NON -NEGOTIABLE PROMISSORY NOTE

Columbia, South Carolina                                           July 26, 2001
$1,000,000

         FOR VALUE RECEIVED, AFFINITY TECHNOLOGY GROUP, INC., a Delaware
corporation ("Affinity"), hereby promises to pay to the order HOMEGOLD, INC., a
South Carolina corporation ("HomeGold"), the principal sum of ONE MILLION
DOLLARS ($1,000,000) with interest thereon as hereinafter provided.

         Principal.   All   outstanding   principal  and  accrued
interest hereunder are payable on December 31, 2001.
         Interest. From the date hereof to and including the due date, the
outstanding principal amount of this Note shall bear simple interest at the rate
per annum equal to eight and no/100 percent (8.00%).
         Payment. All payments of principal of and interest on this Note shall
be made in lawful money of the United States of America. Notwithstanding the
foregoing, Affinity may cause Multi Financial Services, Inc., a Delaware
corporation and a wholly-owned subsidiary of Affinity ("MFS"), to deliver to
HomeGold, in full and complete satisfaction of all of Affinity's obligations
under this Note, the Surety Shares.
         Prepayment. This Note may be prepaid by Affinity at any time without
penalty or additional charge. Notwithstanding the foregoing, Affinity shall use
the cash proceeds received from the sale of the Hampton Street Operations, if
such sale shall occur, to repay, to the extent possible, the outstanding
principal and accrued and unpaid interest under the Note, and such repayment
shall be made as promptly as possible following such sale.
         Waivers. To the extent permitted by applicable law, Affinity hereby
waives presentment, demand for performance, notice of non-performance, protest,
notice of protest and notice of dishonor. No delay on the part of HomeGold in
exercising any right hereunder shall operate as a waiver of such right or any
other right.
         Severability. To the extent any provision of this Note is prohibited by
or invalid under the applicable law of any jurisdiction, such provision shall be
ineffective only to the extent of such prohibition or invalidity and only in any
such jurisdiction, without prohibiting or invalidating such provision in any
other jurisdiction or the remaining provisions of this Note in any jurisdiction.
         Headings. The headings of the various sections and subsections of this
Note have been inserted for convenience only and shall not in any way affect the
meaning or construction of any of the provisions hereof.
         Governing Law. This Note shall be governed by and construed in
accordance with the laws of the State of South Carolina, without giving effect
to the conflict of laws provisions thereof.
         Agreement. This Note has been delivered by Affinity to HomeGold
pursuant to the Agreement, dated as of the date hereof, between Affinity, MFS
and HomeGold (the "Agreement"), and is subject to the terms and conditions of
the Agreement. Defined terms used but not defined herein shall have the meanings
given to them in the Agreement.
         IN WITNESS WHEREOF, Affinity has duly executed this Note as of the date
first above written.

                                    AFFINITY TECHNOLOGY GROUP, INC.

                                    By:
                                       ------------------------------------
                                         Joseph A. Boyle
                                         President and Chief Executive Officer

<PAGE>

                                    EXHIBIT B

                                PLEDGE AGREEMENT

         THIS PLEDGE AGREEMENT (the "Agreement"), dated as of July 26, 2001, is
made by AFFINITY TECHNOLOGY GROUP, INC., a Delaware corporation ("Affinity"),
and MULTI FINANCIAL SERVICES, INC., a Delaware corporation and a wholly-owned
subsidiary of Affinity (the "Pledgor"), for the benefit of HOMEGOLD, INC., a
South Carolina corporation (the "Pledgee").

                              BACKGROUND STATEMENT

         Affinity, the Pledgor and the Pledgee have entered into an Agreement
(the "Loan Agreement"), dated as of the date hereof, pursuant to which, among
other things, the Pledgee has made a loan to Affinity evidenced by a note in the
principal amount of $1,000,000, dated as of the date hereof, delivered by
Affinity to the Pledgee (the "Note"). To provide security to the Pledgee for the
performance of Affinity's obligations under the Note, the Pledgor has agreed to
pledge to the Pledgee all the Pledgor's right, title and interest in the
outstanding shares (the "Surety Shares") of capital stock of Surety Mortgage,
Inc., a Delaware corporation and a wholly-owned subsidiary of the Pledgor
("Surety").

                             STATEMENT OF AGREEMENT

         NOW, THEREFORE, for good and valuable consideration, the receipt of
which is hereby acknowledged, the Pledgee and the Pledgor agree as follows:

         1. Pledge. As collateral security for the full and timely payment,
performance and observance of Affinity's obligations under the Note (the
"Obligations"), the Pledgor deposits and pledges with the Pledgee, in form
transferable for delivery, the Surety Shares (the "Pledged Securities"),
together with any and all proceeds of any of the foregoing in whatever form (the
Pledged Securities and the proceeds thereof are referred to collectively as the
"Pledged Collateral").

         2. Representations and Warranties. The Pledgor represents and warrants
that the Pledged Securities are, and will be on deposit hereunder, duly and
validly pledged with the Pledgee in accordance with the law, and agrees to
defend the Pledgee's right, title, lien and security interest in and to the
Pledged Collateral against the claims and demands of all persons whomsoever. The
Pledgor also represents and warrants to the Pledgee that the Pledgor has, and
will have on deposit hereunder, good title to all of the Pledged Collateral,
free and clear of all claims, mortgages, pledges, liens, encumbrances and
security interests of every nature whatsoever except those granted to the
Pledgee pursuant to the Loan Agreement and this Agreement, and that no consent
or approval of any governmental or regulatory authority, or of any securities
exchange, which has not been obtained, was or is necessary to the validity of
this pledge.

         3. Voting Rights. So long as Affinity is not in default of its
obligations under the Note, the Pledgor shall be entitled to exercise the voting
power with respect to the Pledged Securities. Notwithstanding the foregoing, if
Affinity shall be in default of its obligations under the Note, the Pledgee
shall have the sole and absolute right, in addition to any other rights herein
contained, to exercise all voting power with respect to the Pledged Securities,
and in such event the Pledgor hereby appoints the Pledgee as the Pledgor's true
and lawful proxy to vote such shares in any manner that the Pledgee deems
advisable for or against all matters that may be submitted to a vote of the
stockholders of Surety.

         4. Dividends and Other Distributions. Subject to SECTION 2(D) of the
Loan Agreement, all dividends and other distributions payable in cash or
property with respect to any of the Pledged Securities shall by paid to the
Pledgor. Notwithstanding the foregoing, any shares of the capital stock of
Surety that are issued in connection with a stock dividend, stock split,
reclassification, recapitalization or similar transaction, or in the merger or
consolidation of Surety into another corporation, shall be delivered to the
Pledgee to be held by it as additional collateral hereunder, and all of the same
shall constitute Pledged Collateral for all purposes hereof.

<PAGE>

         5. Remedies. Upon the occurrence of a default by Affinity under the
terms of the Note, the Pledgee shall have all the rights and remedies available
under law, including without limitation the rights of a secured party under the
South Carolina Uniform Commercial Code.

         6. No Waiver. No delay on the part of the Pledgee in exercising any of
its options, powers or rights, or partial or single exercise thereof, shall
constitute a waiver thereof.

         7. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of South Carolina without giving effect to
the principles of conflicts of law.

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

            [The remainder of this page is left blank intentionally.]

<PAGE>

         IN WITNESS WHEREOF, the Pledgor and the Pledgee have caused this
Agreement to be duly executed under seal as of the day and year first above
written.

                                   AFFINITY TECHNOLOGY GROUP, INC.

                                   By:   _____________________________
                                   Name: _____________________________
                                   Title:_____________________________

                                   THE PLEDGOR:

                                   MULTIFINANCIAL SERVICES, INC.

                                   By:   _____________________________
                                   Name: _____________________________
                                   Title:_____________________________

                                   THE PLEDGOR:

                                   HOMEGOLD, INC.

                                   By:   _____________________________
                                   Name: _____________________________
                                   Title:_____________________________<PAGE>
                            AMENDMENT AGREEMENT NO. 1
                     TO AMENDED AND RESTATED LOAN AGREEMENT

         THIS AMENDMENT AGREEMENT NO. 1 TO AMENDED AND RESTATED LOAN AGREEMENT
(this "Amendment Agreement") is made and entered into as of this 31st day of
August, 2001, by and between COAST DENTAL SERVICES, INC., a Delaware corporation
(the "Borrower") and BANK OF AMERICA, N.A., a national banking association
organized and existing under the laws of the United States (the "Lender").

                                  WITNESSETH:

         WHEREAS, the Borrower and the Lender have entered into an Amended and
Restated Loan Agreement dated as of November 4, 1999 (the "Loan Agreement")
pursuant to which the Lender has agreed to make available to the Borrower a
revolving credit facility of up to $20,000,000; and

         WHEREAS, the Borrower has requested that the Lender amend the Loan
Agreement in the manner provided herein; and

         WHEREAS, upon the terms and conditions contained herein, the Lender is
willing to amend the Loan Agreement;

         NOW, THEREFORE, in consideration of the mutual covenants, promises and
conditions herein set forth, it is hereby agreed as follows:

         1. DEFINITIONS. The term "Loan Agreement" as used herein and in the
Loan Documents shall mean the Loan Agreement as heretofore and hereby amended
and as from time to time further amended or modified. Unless the context
otherwise requires, all capitalized terms used herein without definition shall
have the respective meanings provided therefor in the Loan Agreement.

     2. AMENDMENTS. Subject to the conditions hereof, the Loan Agreement is
hereby amended, effective as of the date hereof, except as otherwise expressly
indicated in Section 2(f), as follows:

            (a) Section 1 is hereby amended inserting the defined term
     "Availability Date" in its proper alphabetical order to read as
     follows:

                "AVAILABILITY DATE. The term "Availability Date" means the date
            upon which (a) the Borrower shall have maintained Consolidated
            EBITDA (as defined in Section 5(A)(ii)) of not less than $750,000
            for two consecutive fiscal quarter periods, and (b) the Borrower
            shall have a Consolidated Fixed Charge Coverage

                                       1
<PAGE>

            Ratio (as defined in Section 5(A)(iii)) of not less than 1.50 to
            1.00 as of the end of the most recently ended Four Quarter Period."

            (b) Section 2(A) is hereby amended by deleting the amount
         "$20,000,000.00" in the third line thereof and inserting in lieu
         thereof the amount "$5,000,000.00".

            (c) Section 2(A)(i) is hereby amended in its entirety so that as
         amended it shall read as follows"

                "(i) Borrower shall execute and deliver to Lender a Fourth
            Renewal and Replacement Revolving Promissory Note in the original
            principal sum of Five Million and No/100ths Dollars ($5,000,000.00)
            payable to the order of the Lender and evidencing Borrower's
            obligation to repay the Revolving Line of Credit (the "Note"). The
            payment terms, interest rate and Maturity Date applicable to the
            Loan are contained in the Note."

            (d) Section 2(A)(iii) is hereby amended by deleting the word "and"
         before subsection (d) and inserting the following at the end thereof:

                "and (e) the Availability Date shall have occurred."

            (e) Section 2(B) is hereby amended by inserting the phrase "From and
         after the Availability Date" at the beginning of the first sentence
         thereof.

            (f) The first sentence of Section 5(A)(ii) is hereby amended,
         effective from and as of June 29, 2001 through and including August 31,
         2001, in its entirety so that as amended it shall read as follows:

                "Permit its ratio of Consolidated Funded Debt to Consolidated
            EBITDA to exceed a maximum of (x) 2.25 to 1.00 at any time exclusive
            of any Seller Financing and (y) 3.20 to 1.00 at any time includsive
            of Seller Financing.

            (g) Section 5(A) is hereby amended in its entirety so that as
         amended it shall read as follows:

                "A. FINANCIAL COVENANTS. Maintain Borrower's financial condition
            as follows, determined in accordance with GAAP applied on a
            consistent basis throughout the loan period involved except to the
            extent modified by the following definitions:

            From and after the Availability Date, the Borrower shall not:

                                       2
<PAGE>

                (i) Permit its ratio of consolidated total liabilities to
            Consolidated Tangible Net Worth to exceed a maximum of 1.00 to 1.00
            at any time.

                (ii) Permit its ratio of Consolidated Funded Debt to
            Consolidated EBITDA to exceed a maximum of (x) 2.25 to 1.00 at any
            time exclusive of any Seller Financing and (y) 2.75 to 1.00 at any
            time inclusive of Seller Financing. Consolidated EBITDA shall be
            defined as net income plus interest expense (less interest income)
            plus tax expense (less tax benefits) plus depreciation expense plus
            amortization expense and shall exclude any nonrecurring or
            extraordinary cash or noncash income. For purposes of calculating
            EBITDA, the Borrower shall be permitted to add-back any losses from
            the partial disposition of dental practices resulting from the
            current equity sale plan publicly outlined. The amount of such loss
            to be added-back shall be substantiated by the Borrower with any
            necessary documentation to the satisfaction of the Lender.

                (iii) Permit its Consolidated Fixed Charge Coverage Ratio to be
            less than 1.50 to 1.00 at the end of any Four Quarter Period. The
            Consolidated Fixed Charge Coverage Ratio shall be defined as the
            ratio of (x) Consolidated EBITDA less capital expenditures less
            cash taxes paid (excluding any cash tax benefit) to (y) current
            maturities of long term debt (excluding the Revolving Line of
            Credit) plus current maturities of capital leases plus interest
            expense.

                For the purposes of calculating all financial covenants,
            Consolidated EBITDA and the Consolidated Fixed Charge Coverage Ratio
            shall be calculated as of the most recently ended Four Quarter
            Period and consolidated total liabilities, Consolidated Tangible Net
            Worth and Consolidated Funded Debt shall be calculated as of the
            date of calculation thereof."

            (h) Section 5(I) is hereby amended by in its entirety so that as
         amended it shall read as follows:

                "I. LOAN PROCEEDS. Use all loan proceeds solely for working
            capital needs, capital expenditures and other general corporate
            purposes."

            (i) Section 6(C) is hereby amended by deleting the second paragraph
         thereof.

            (j) Section 6 is hereby amended by inserting new subsections (F),
         (G), (H) and (I) at the end thereof to read as follows:

                "F. DIVIDENDS. Make or pay any dividends or other distributions
            on account of any shares of any class of stock of the Borrower
            except a dividend payable solely in shares of a class of stock to
            holders of that class."

                                       3
<PAGE>

                G. SHARE REPURCHASES. On or after the Availability Date, make
            any purchases or other acquisitions for value of any shares of any
            class of stock of the Borrower, or any warrants, options or other
            rights to acquire shares of any class of stock of the Borrower.

                H. ACQUISITIONS. Make any acquisitions of or purchase any
            additional dental practices.

                I. ADDITIONAL CONSOLIDATED FUNDED DEBT. Incur, create or permit
            to exist any additional Consolidated Funded Debt."

            (k) Section 7(E) is hereby amended in its entirety so that as
            amended it shall read as follows:

                "E. Borrower shall fail to perform any covenant set forth in
            Section 5(A) or Section 6."

         3. BORROWER'S REPRESENTATIONS AND WARRANTIES. The Borrower hereby
         represents, warrants and certifies that:

            (a) The representations and warranties made by it in Section 4 of
         the Loan Agreement are true on and as of the date hereof before and
         after giving effect to this Amendment Agreement;

            (b) The Borrower has the power and authority to execute and perform
         this Amendment Agreement and has taken all action required for the
         lawful execution, delivery and performance thereof.

            (c) There has been no material adverse change in the condition,
         financial or otherwise, of the Borrower since the date of the most
         recent financial reports of the Borrower received by the Lender under
         Section 5(B) of the Loan Agreement, other than changes in the ordinary
         course of business, none of which has been a material adverse change;

            (d) The business and properties of the Borrower are not, and since
         the date of the most recent financial report of the Borrower received
         by the Lender under Section 5(B) of the Loan Agreement have not been,
         adversely affected in any substantial way as the result of any fire,
         explosion, earthquake, accident, strike, lockout, combination of
         workmen, flood, embargo, riot, activities of armed forces, war or acts
         of God or the public enemy, or cancellation or loss of any major
         contracts; and

            (e) No event has occurred which has not been either waived or
         otherwise consented to by you, and no condition exists which, upon the
         consummation of the transaction contemplated hereby, constitutes an
         Event of Default on the part of the

                                       4
<PAGE>

         Borrower under the Loan Agreement or the Note either immediately or
         with the lapse of time or the giving of notice, or both.

         4. CONDITIONS TO EFFECTIVENESS. This Amendment Agreement shall become
effective upon receipt by the Lender of the following:

            (a) four (4) counterparts of this Amendment Agreement executed by
         the parties hereto;

            (b) a new Fourth Renewal and Replacement Revolving Promissory Note
         executed by the Borrower in favor of the Lender in the amount of
         $5,000,000;

            (c) resolutions or consents of the board of directors or other
         appropriate governing body of the Borrower certified by its secretary
         or assistant secretary as of the date hereof, approving and adopting
         this Amendment Agreement and the Note and authorizing the execution and
         delivery thereof;

            (d) specimen signatures of officers or other appropriate
         representatives executing this Amendment Agreement and the Note on
         behalf of the Borrower, certified by the secretary or assistant
         secretary of the Borrower;

            (e) the favorable written opinion with respect to this Amendment
         Agreement and the Note executed in connection herewith of special
         counsel to the Borrower, dated as of the date hereof, addressed to the
         Lender and satisfactory to Smith Helms Mulliss & Moore, LLP, special
         counsel to the Lender; and

            (f) such other instruments and documents as the Lender may
         reasonably request.

         5. AMENDMENT FEE; EXPENSES. The Borrower agrees to pay to the Lender an
amendment fee of $10,000. The Borrower agrees to pay to the Lender all
reasonable out-of-pocket expenses (including reasonable legal fees and expenses
of special counsel to the Lender) incurred or arising in connection with the
negotiation and preparation of this Amendment Agreement.

         6. ENTIRE AGREEMENT. This Amendment Agreement sets forth the entire
understanding and agreement of the parties hereto in relation to the subject
matter hereof and supersedes any prior negotiations and agreements among the
parties relative to such subject matter. None of the terms or conditions of this
Amendment Agreement may be changed, modified, waived or canceled orally or
otherwise, except by writing, signed by all the parties hereto, specifying such
change, modification, waiver or cancellation of such terms or conditions, or of
any proceeding or succeeding breach thereof.

                                       5
<PAGE>

         7. FULL FORCE AND EFFECT OF AGREEMENT. Except as hereby specifically
amended, modified or supplemented, the Loan Agreement and all of the other Loan
Documents are hereby confirmed and ratified in all respects and shall remain in
full force and effect according to their respective terms.

                                       6
<PAGE>

         8. COUNTERPARTS. This Amendment Agreement may be executed in any number
of counterparts and all the counterparts taken together shall be deemed to
constitute one and the same instrument.

                 [Remainder of page intentionally left blank.]

                                       7
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Amendment
Agreement to be duly executed by their duly authorized officers, all as of the
day and year first above written.

                                    BORROWER:

                                    COAST DENTAL SERVICES, INC.

                                    By: /s/ William Geary
                                        ----------------------------------------
                                    Name: William Geary
                                    Title: Chief Financial Officer

                                    LENDER:

                                    BANK OF AMERICA, N.A.

                                    By: /s/ Sadahri W. Berry
                                        ----------------------------------------
                                    Name: Sadahri W. Berry
                                    Title: Vice President

                              Signature Page 1 of 1
<PAGE>

                         THIRD RENEWAL AND REPLACEMENT
                           REVOLVING PROMISSORY NOTE

DATE: EFFECTIVE AS OF AUGUST 31, 2001                  [ ] NEW       [X] RENEWAL

AMOUNT $5,000,000.00                             MATURITY DATE: NOVEMBER 4, 2002

================================================================================
   BANK:                                 BORROWER:

   BANK OF AMERICA, N.A.                 COAST DENTAL SERVICES, INC., A DELAWARE
   101 EAST KENNEDY BLVD. - 5TH FLOOR    CORPORATION
   ATTN. COMMERCIAL BANKING              2502 ROCKY POINT DRIVE
   TAMPA, FLORIDA, 33602                 SUITE 1000
                                         TAMPA, FLORIDA 33607

================================================================================

FOR VALUE RECEIVED, the undersigned Borrower unconditionally promises to pay to
the order of Bank, its successors and assigns, without setoff, at its offices
indicated at the beginning of this Note, or at such other place as may be
designated by Bank, the principal amount of Five Million and 00/100ths Dollars
($5,000,000.00), or so much thereof as has been advanced hereunder, together
with interest on the unpaid principal balance from time to time outstanding from
the date of each advance of principal, as hereinafter stated.

         This is a Revolving Promissory Note evidencing borrowings up to the
principal sum shown above, but notwithstanding such face amount of this Note,
the actual indebtedness from time to time evidenced hereby shall be the sum of
all advances by Bank to Borrower hereunder, less the aggregate amount of all
principal payments made under this Note by Borrower to Bank, it being the intent
hereof and the purpose of this Note to provide a revolving line of credit which
the Borrower may draw against and which Bank will advance from time to time, at
it's sole discretion and which the Borrower shall repay in whole or in part
from time to time as provided hereinafter, provided however, that the total
principal amount outstanding hereunder shall not ever exceed the face amount of
this Note.

[This Note contains some provisions preceded by boxes. If a box is marked, the
provision applies to this transaction; if it is not marked, the provision does
not apply to this transaction.]

1. RATE.

[ ] PRIME RATE. The Rate shall be the Prime Rate, plus _____ percent, per annum.
The "Prime Rate" is the fluctuating rate of interest established by Bank from
time to time, at its discretion, whether or not such rate shall be otherwise
published. The Prime Rate is established by Bank as an index and may or may not
at any time be the best or lowest rate charged by Bank on any loan.

THIS INSTRUMENT WAS MADE, EXECUTED AND DELIVERED OUTSIDE THE STATE OF FLORIDA,
AND NO FLORIDA DOCUMENTARY STAMP TAX IS DUE HEREON IN ACCORDANCE WITH F.A.C.
12B-4.053(35)

4436408.04                                                       Promissory Note
Bank of America, N.A.                                                       8/01
Florida [Commercial]

<PAGE>

[ ] FIXED RATE. The Rate shall be fixed at ______ percent per annum.

[X] LIBOR RATE. The interest rate on this Note is subject to change from time
to time based on the Libor Rate for each Interest Period plus the applicable
Margin Percentage (hereinafter defined). The Libor Rate for each Interest Period
shall mean the offered rate for deposits in United States dollars in the London
Interbank market for a one month period which appears on the Telerate Screen
Page 3750 as of 11:00 a.m. (London time) on the day that is two London Banking
days (as defined herein) preceding the first Banking Business Day (as defined
herein) of the Interest Period. If at least two such offered rates appear on the
Telerate Screen Page 3750, the rater will be the arithmetic mean of such offered
rates. The Bank may, in its discretion, use any other publicly available index
or reference rate showing rates offered for United States dollar deposits in the
London Interbank market as of the applicable date. In addition a, the Bank may,
in its discretion, use rater quotations for daily or annual periods in lieu of
quotations for substantially equivalent monthly periods.

         The applicable Margin Percentage shall be defined as follows:

         (i). If the Consolidated Funded Debt to Consolidated EBITDA Ratio
         (hereinafter defined) is less than 1:1, then the Margin Percentage
         shall be one and twenty five one-hundredths percent (1.25%);

         (ii). If the Consolidated Funded Debt to Consolidated EBITDA Ratio is
         equal to or greater than 1:1, but less than 1.50:1, then the Margin
         Percentage shall be one and fifty one-hundredths percent (1.50%); and

         (iii). If the Consolidated Funded Debt to Consolidated EBITDA Ratio is
         equal to or greater than 1.50:1, but less than 2.75:1, then the Margin
         Percentage shall be one and seventy-five one hundredths percent
         (1.75%).

"BUSINESS BANKING DAY" shall mean each day other than a Saturday, a Sunday or
any holiday on which commercial banks in Jacksonville, Florida are closed for
business.

"CONSOLIDATED FUNDED DEBT TO CONSOLIDATED EBITDA RATIO" shall mean a ratio which
is equal to Borrower's funded debt divided by CONSOLIDATED EBITDA (as defined in
Section 5(A)(ii) of the Amended and Restated Loan Agreement of even date
herewith, i.e. net income plus interest expense plus tax expense plus
depreciation expense plus amortization expense and measured on a rolling four
quarter basis.) Consolidated EBITDA shall exclude any nonrecurring or
extraordinary cash or noncash income.

"INTEREST PERIOD" shall mean each period commencing on each Interest Rate
Adjustment Date and ending on the next Interest Rate Adjustment Date.

"INTEREST RATE ADJUSTMENT DATE" shall mean (a) the 4th day of November, 1999 and
the 4th day of each month thereafter with respect to the Libor Rate and (b) the
45th day following the end of the Borrower's fiscal quarter as described in
Section 5(b) of the Loan Agreement (as hereinafter defined) with respect to the
Margin Percentage.

"LONDON BANKING DAY" shall mean each day other than a Saturday, a Sunday or any
holiday on which commercial banks in London, England are closed for business.

436408.04                                                        Promissory Note
Bank of America, N.A.                                                       8/01
Florida [Commercial]                   2

<PAGE>

Notwithstanding any provision of this Note, Bank does not intend to charge and
Borrower shall not be required to pay any amount of interest or other charges in
excess of the maximum permitted by the applicable law of the State of Florida.
Any payment in excess of such maximum shall be refunded to Borrower or credited
against principal, at the option of Bank.

2. ACCRUAL METHOD. Unless otherwise indicated, interest at the Rate set forth
above will be calculated by the 365/360 day method (a daily amount of interest
is computed for a hypothetical year of 360 days; that amount is multiplied by
the actual number of days for which any principal is outstanding hereunder).

3. RATE CHANGE DATE. Any Rate based on a fluctuating index or base rate will
change, unless otherwise provided, each time and as of the date that the index
or base rate changes. If the Rate is to change on any other date or at any other
interval, the change shall be the 4th day of each month. In the event any index
is discontinued, Bank shall substitute an index determined by Bank to be
comparable, in its sole discretion.

4. PAYMENT SCHEDULE. All payments received hereunder shall be applied first to
the payment of any expense or charges payable hereunder or under any other loan
documents executed in connection with this Note, then to interest due and
payable, with the balance applied to principal, or in such other order as Bank
shall determine at its option.

         [X] MONTHLY INTEREST PAYMENTS. Commencing on the 4th day of December,
1999, and continuing on the 4th day of each month thereafter through the
Maturity Date, Borrower shall pay all accrued interest at the LIBOR Rate set
forth above.

         [X] BALLOON PAYMENT. Notwithstanding anything to the contrary herein,
the entire unpaid outstanding principal balance, together with any accrued
interest, shall be due and payable November 4, 2002 (the "Maturity Date").

         [ ] PRINCIPAL PLUS ACCRUED INTEREST PAYMENTS. Commencing on __________,
and continuing on the same day of each month thereafter through and including
the Maturity Date, Borrower shall pay to Bank a principal payment in the amount
of ________________, plus all accrued interest; with a final payment of all
unpaid principal and accrued interest due on _________________________.

         [ ] FIXED PRINCIPAL AND INTEREST. Principal and interest shall be paid
in consecutive equal installments of $______ payable [ ] monthly, [ ] quarterly
or [ ] _______, commencing on ____________________, and continuing on the [x]
same day, [ ] last day of each successive month, quarter or other period (as
applicable) thereafter, with a final payment of all unpaid principal and
interest due thereon on _______________. If, on any payment date, accrued
interest exceeds the installment amount set forth above, Borrower will also pay
such excess as and when billed.

         [ ] SINGLE PRINCIPAL PAYMENT. Principal shall be paid in full in a
single payment on __________________, 19__. Interest thereon shall be paid [ ]
at maturity, or else [ ] monthly, [ ] quarterly or [ ] ___________, commencing
on __________, 19__, and continuing on the [ ] same day, [ ] last day of each
successive month, quarter or other period (as applicable) thereafter, with a
final payment of all unpaid interest at the stated maturity of this Note.

436408.04                                                        Promissory Note
Bank of America, N.A.                                                       8/01
Florida [Commercial]                   3

<PAGE>

         [ ] Other.

5. AUTOMATIC PAYMENT.

[X] Borrower has elected to authorize Bank to effect payment of sums due under
this Note by means of debiting Borrower's account number ____________. This
authorization shall not affect the obligation of Borrower to pay such sums when
due, without notice, if there are insufficient funds in such account to make
such payment in full on the due date thereof, or if Bank fails to debit the
account.

6. WAIVERS, CONSENTS AND COVENANTS. Borrower, (the "Obligor"): (a) waives
presentment, demand, protest, notice of demand, notice of intent to accelerate,
notice of acceleration of maturity, notice of protest, notice of nonpayment,
notice of dishonor, and any other notice required to be given under the law to
Obligor in connection with the delivery, acceptance, performance, default or
enforcement of this Note; (b) consents to all delays, extensions, renewals or
other modifications of this Note, or waivers of any term hereof or the failure
to act on the part of Bank, or any indulgence shown by Bank (without notice to
or further assent from Obligor), and agrees that no such action, failure to act
or failure to exercise any right or remedy by Bank shall in any way affect or
impair the obligations of Obligor or be construed as a waiver by Bank of, or
otherwise affect, any of Bank's rights under this Note; and (c) agrees to pay,
on demand, all costs and expenses of collection or defense of this Note,
including, without limitation, reasonable attorney's and paralegal's fees,
including fees related to any suit, mediation or arbitration proceeding, out of
court payment agreement, trial, appeal, bankruptcy proceedings or other
proceeding, in such amount as may be determined reasonable by any arbitrator or
court, whichever is applicable.

7. INDEMNIFICATION. Obligor agrees to promptly pay, indemnify and hold Bank
harmless from all State and Federal taxes of any kind and other liabilities with
respect to or resulting from the execution and/or delivery of this Note or any
advances made pursuant to this Note.

8. PREPAYMENT. Borrower shall have the right, provided that it is not in default
under this Note, to prepay the principal balance of this Note, in whole or in
part, at any time, upon payment of all interest and other sums then due and
payable pursuant to the provisions of this Note. If this Note is satisfied as of
any LIBOR Roll-Over Date, or if the Prime Rate is then in effect, no prepayment
premium shall be payable with respect to any portion of the principal balance of
this Note. However, if the LIBOR Rate is in effect and the prepayment is not
effected on a LIBOR Roll-Over Date, then Bank may require, in its sole
discretion, that Borrower pay to Bank contemporaneously with any such prepayment
of this Note, a sum equal to the amount of the prepayment multiplied by a per
annum interest rate equal to the difference between the LIBOR Rate applicable
thereto, and the 360 day equivalent interest yield (hereinafter call the
"Reinvestment Rate") on any United States Treasury obligations selected by Bank
in an aggregate amount approximately equal to the outstanding principal balance
of this Note, and with a maturity comparable to the LIBOR Roll-Over Date
applicable thereto calculated over a period of time from the date of prepayment
to and including such LIBOR Roll-Over Date. If the LIBOR Rate being prepaid is
equal or less than the Reinvestment Rate, no prepayment premium shall be due.
Any payment of the principal balance of this Note after acceleration of the
maturity date of this Note, or the commencement of any proceedings to enforce
this Note or the Loan Agreement, shall be deemed a voluntary prepayment for the
purposes of this paragraph shall be payable with respect thereto based upon the
LIBOR Rate applicable to this Note immediately prior to such default and
acceleration. Bank shall certify to Borrower the amount and basis of
determination of such prepayment premium, it being agreed that (i) the
calculation of such prepayment premium may be based on any United States
Treasury obligations selected by Bank in its sole discretion and (ii) Bank shall
not be obligated or required to have actually reinvested the prepaid principal
balance of this Note in any such United States Treasury obligations as a

436408.04                                                        Promissory Note
Bank of America, N.A.                                                       8/01
Florida [Commercial]                   4

<PAGE>

condition precedent to receiving a prepayment premium calculated as aforesaid.
Borrower shall, upon receipt of such certification and contemporaneously with
any such prepayment of the principal balance of this Note, remit to Bank the
prepayment premium, if any, due in connection therewith as calculated pursuant
to the provisions of this paragraph. Bank shall not be obligated to accept any
prepayment of the principal balance of this Note unless it is accompanied by the
prepayment premium, if any, due in connection therewith as calculated pursuant
to the provisions of this paragraph.

9. DELINQUENCY CHARGE. To the extent permitted by law, a delinquency charge
shall be imposed in an amount not to exceed four percent (4%) of the unpaid
portion of any payment that is more than fifteen days late.

10. CROSS DEFAULT. A default under this Note shall be and constitute a default
under any and all other notes or other evidence of indebtedness and any
instruments of security in which Borrower is liable and of which the Bank is the
holder. A default under any and all other note(s) or other evidence of
indebtedness or any instruments of security in which Borrower is liable and of
which Bank is the holder shall also constitute a default under this Note.

11. EVENTS OF DEFAULT. The following are events of default hereunder: (a) the
failure to pay or perform any obligation, liability or indebtedness of Obligor
to Bank, under this Note; (b) the resignation or withdrawal of Mr. Terek Diasti
from his current position with Borrower, or a change in his status as an active
participant in the day to day operations of Borrower, as determined by Bank in
its sole discretion; (c) the commencement of a proceeding against Obligor for
dissolution or liquidation, the voluntary or involuntary termination or
dissolution of Obligor; or (d) the merger or consolidation of Obligor with or
into another entity where Obligor is not the survivor; (e) the insolvency of,
the business failure of, the appointment of a custodian, trustee, liquidator or
receiver for or for any of the property of, the assignment for the benefit of
creditors by, or the filing of a petition under bankruptcy, insolvency or
debtor's relief law or the filing of a petition for any adjustment of
indebtedness, composition or extension by or against Obligor, (f) the
determination by Bank that any material representation or warranty made to Bank
by Obligor in any Loan Documents or otherwise is or was, when it was made,
untrue in any material respect or materially misleading; (g) the failure of
Obligor to timely deliver such financial statements, including tax returns,
other statements of condition or other information, as Bank shall request from
time to time; (h) the entry of a judgment against Obligor in excess of
$500,000.00; (i) the seizure or forfeiture of, or the issuance of any writ of
possession, garnishment or attachment, or any turnover order for any property of
Obligor in excess of $100,000.00; (j) the determination by Bank that a material
adverse change has occurred in the financial condition of Obligor; or (k) the
failure of Borrower's business to comply in any material respect with any law or
regulation controlling its operation.

12. REMEDIES UPON DEFAULT. Whenever there is a default under this Note (a) the
entire balance outstanding hereunder shall, at the option of Bank, become
immediately due and payable and any obligation of Bank to permit further
borrowing under this Note shall immediately cease and terminate, and/or (b) to
the extent permitted by law, the Rate of interest on the unpaid principal shall
be increased at Bank's discretion up to the maximum rate allowed by law (the
"Default Rate"). The provisions herein for a Default Rate shall not be deemed to
extend the time for any payment hereunder or to constitute a "grace period"
giving Obligor a right to cure any default. At Bank's option, any accrued and
unpaid interest, fees or charges may, for purposes of computing and accruing
interest on a daily basis after the due date of the Note or any installment
thereof, be deemed to be a part of the principal balance, and interest shall
accrue on a daily compounded basis after such date at the Default Rate provided
in this Note until the entire outstanding balance of principal and interest is
paid in full. Upon a default under this Note, Bank is hereby

436408.04                                                        Promissory Note
Bank of America, N.A.                                                       8/01
Florida [Commercial]                   5

<PAGE>

authorized at any time, at its option and without notice or demand, to set off
and charge against any deposit accounts of any Obligor (as well as any money,
instruments, securities, documents, chattel paper, credits, claims, demands,
income and any other property, rights and interests of any Obligor), which at
any time shall come into the possession or custody or under the control of Bank
or any of its agents, affiliates or correspondents, any and all obligations due
hereunder. Additionally, Bank shall have all rights and remedies available under
each of the Loan Documents, as well as all rights and remedies available at law
or in equity. Any judgment rendered on this Note shall bear interest at the
highest rate of interest permitted pursuant to Chapter 687, Florida Statutes.

13. NON-WAIVER. The failure at any time of Bank to exercise any of its options
or any other rights hereunder shall not constitute a waiver thereof, nor shall
it be a bar to the exercise of any of its options or rights at a later date. All
rights and remedies of Bank shall be cumulative and may be pursued singly,
successively or together, at the option of Bank. The acceptance by Bank of any
partial payment shall not constitute a waiver of any default or of any of Bank's
rights under this Note. No waiver of any of its rights hereunder, and no
modification or amendment of this Note, shall be deemed to be made by Bank
unless the same shall be in writing, duly signed on behalf of Bank; each such
waiver shall apply only with respect to the specific instance involved, and
shall in no way impair the rights of Bank or the obligations of Obligor to Bank
in any other respect at any other time.

14. APPLICABLE LAW, VENUE AND JURISDICTION. This Note and the rights and
obligations of Borrower and Bank shall be governed by and interpreted in
accordance with the law of the State of Florida. In any litigation in connection
with or to enforce this Note, Obligor irrevocably consents to and confers
personal jurisdiction on the courts of the State of Florida or the United States
located within the State of Florida and expressly waive any objections as to
venue in any such courts. Nothing contained herein shall, however, prevent Bank
from bringing any action or exercising any rights within any other state or
jurisdiction or from obtaining personal jurisdiction by any other means
available under applicable law. The interest rate charged on this Note is
authorized by Chapter 655, Florida Statutes and Section 687.12, Florida
Statutes.

15. PARTIAL INVALIDITY. The unenforceability or invalidity of any provision of
this Note shall not affect the enforceability or validity of any other provision
herein and the invalidity or unenforceability of any provision of this Note or
of the Loan Documents to any person or circumstance shall not affect the
enforceability or validity of such provision as it may apply to other persons or
circumstances.

16. BINDING EFFECT. This Note shall be binding upon and inure to the benefit of
Borrower and Bank and their respective successors, assigns, heirs and personal
representatives, provided, however, that no obligations of Borrower hereunder
can be assigned without prior written consent of Bank.

17. CONTROLLING DOCUMENT. To the extent that this Note conflicts with or is in
any way incompatible with any other document related specifically to the loan
evidenced by this Note, this Note shall control over any other such document,
and if this Note does not address an issue, then each other such document shall
control to the extent that it deals most specifically with an issue.

18. SECURITY. This Note is secured by a certain Amended and Restated Loan
Agreement dated as of November 4, 1999 by Borrower and Bank, as amended by
Amendment Agreement No. 1 dated as of August 25, 2001, which instrument (as
amended to date and as further amended, modified or supplemented, the "Loan
Agreement"), together with the other loan documents executed in connection with
the Note are sometimes herein collectively referred to as the "Loan Documents".

436408.04                                                        Promissory Note
Bank of America, N.A.                                                       8/01
Florida [Commercial]                   6

<PAGE>

19. REPLACEMENT. This Note replaces and supersedes that certain Third Renewal
and Replacement Revolving Promissory Note executed by Borrower in favor of Bank
dated as of November 4, 1999 in the original principal amount of $20,000,000.00,
and that certain Second Renewal and Replacement Revolving Promissory Note
executed by Borrower in favor of Barnett Bank, N.A. dated November 24, 1997 in
the original principal amount of $15,000,000.00 and that certain First Renewal
and Replacement Revolving Promissory Note executed by Borrower in favor of
Barnett Bank, N.A., dated March 7, 1997, in the original principal amount of
$5,000,000.00.

20. COMPLIANCE AGREEMENT. For and in consideration of the funding or renewal of
this loan by Bank, the Borrower hereby agrees to cooperate or re-execute any and
all loan documentation deemed necessary or desirable in Bank's discretion, in
order to correct or to adjust for any clerical errors or omissions contained in
any document executed in connection with this loan.

21. ARBITRATION. ANY CONTROVERSY OR CLAIM BETWEEN OR AMONG THE PARTIES HERETO
INCLUDING BUT NOT LIMITED TO THOSE ARISING OUT OF OR RELATING TO THIS
INSTRUMENT, AGREEMENT OR DOCUMENT OR ANY RELATED INSTRUMENTS, AGREEMENTS OR
DOCUMENTS, INCLUDING ANY CLAIM BASED ON OR ARISING FROM AN ALLEGED TORT, SHALL
BE DETERMINED BY BINDING ARBITRATION IN ACCORDANCE WITH THE FEDERAL ARBITRATION
ACT (OR IF NOT APPLICABLE, THE APPLICABLE STATE LAW), THE RULES OF PRACTICE AND
PROCEDURE FOR THE ARBITRATION OF COMMERCIAL DISPUTES OF J.A.M.S./ENDISPUTE OR
ANY SUCCESSOR THEREOF ("J.A.M.S."), AND THE "SPECIAL RULES" SET FORTH BELOW. IN
THE EVENT OF ANY INCONSISTENCY, THE SPECIAL RULES SHALL CONTROL. JUDGMENT UPON
ANY ARBITRATION AWARD MAY BE ENTERED IN ANY COURT HAVING JURISDICTION. ANY PARTY
TO THIS INSTRUMENT, AGREEMENT OR DOCUMENT MAY BRING AN ACTION, INCLUDING A
SUMMARY OR EXPEDITED PROCEEDING, TO COMPEL ARBITRATION OF ANY CONTROVERSY OR
CLAIM TO WHICH THIS AGREEMENT APPLIES IN ANY COURT HAVING JURISDICTION OVER SUCH
ACTION.

A. SPECIAL RULES. THE ARBITRATION SHALL BE CONDUCTED IN THE COUNTY OF BORROWER'S
DOMICILE AT THE TIME OF THE EXECUTION OF THIS INSTRUMENT, AGREEMENT OR DOCUMENT,
OR IF THERE IS REAL PROPERTY COLLATERAL, IN THE COUNTY WHERE SUCH REAL OR
PERSONAL PROPERTY IS LOCATED, AND ADMINISTERED BY J.A.M.S. WHO WILL APPOINT AN
ARBITRATOR; IF J.A.M.S. IS UNABLE OR LEGALLY PRECLUDED FROM ADMINISTERING THE
ARBITRATION, THEN THE AMERICAN ARBITRATION ASSOCIATION WILL SERVE. ALL
ARBITRATION HEARINGS WILL BE COMMENCED WITHIN 90 DAYS OF THE DEMAND FOR
ARBITRATION; FURTHER, THE ARBITRATOR SHALL ONLY, UPON A SHOWING OF CAUSE, BE
PERMITTED TO EXTEND THE COMMENCEMENT OF SUCH HEARING FOR UP TO AN ADDITIONAL 60
DAYS.

B. RESERVATION OF RIGHTS. NOTHING IN THIS ARBITRATION PROVISION SHALL BE DEEMED
TO (I) LIMIT THE APPLICABILITY OF ANY OTHERWISE APPLICABLE STATUTES OF
LIMITATION OR REPOSE AND ANY WAIVERS CONTAINED IN THIS INSTRUMENT, AGREEMENT OR
DOCUMENT; OR (II) BE A WAIVER BY BANK OF THE PROTECTION AFFORDED TO IT BY 12
U.S.C. SEC. 91 OR ANY SUBSTANTIALLY EQUIVALENT STATE LAW; OR (III) LIMIT THE
RIGHT OF BANK HERETO (A) TO EXERCISE SELF HELP REMEDIES SUCH AS (BUT NOT LIMITED
TO)

436408.04                                                        Promissory Note
Bank of America, N.A.                                                       8/01
Florida [Commercial]                   7

<PAGE>

SETOFF, OR (B) TO FORECLOSE AGAINST ANY REAL OR PERSONAL PROPERTY COLLATERAL, OR
(C) TO OBTAIN FROM A COURT PROVISIONAL OR ANCILLARY REMEDIES SUCH AS (BUT NOT
LIMITED TO) INJUNCTIVE RELIEF, WRIT OF POSSESSION OR THE APPOINTMENT OF A
RECEIVER. BANK MAY FORECLOSE UPON SUCH PROPERTY, OR OBTAIN SUCH PROVISIONAL OR
ANCILLARY REMEDIES BEFORE, DURING OR AFTER THE PENDENCY OF ANY ARBITRATION
PROCEEDING BROUGHT PURSUANT TO THIS INSTRUMENT, AGREEMENT OR DOCUMENT. NEITHER
THE INSTITUTION OR MAINTENANCE OF AN ACTION FOR FORECLOSURE OR PROVISIONAL OR
ANCILLARY REMEDIES SHALL CONSTITUTE A WAIVER OF THE RIGHT OF ANY PARTY,
INCLUDING THE CLAIMANT IN ANY SUCH ACTION, TO ARBITRATE THE MERITS OF THE
CONTROVERSY OR CLAIM OCCASIONING RESORT TO SUCH REMEDIES.

Borrower represents to Bank that the proceeds of this loan are to be used
primarily for business, commercial or agricultural purposes. Borrower
acknowledges having read and understood, and agrees to be bound by, all terms
and conditions of this Note and hereby executes this Note under seal as of the
date here above written.

NOTICE OF FINAL AGREEMENT. THIS WRITTEN PROMISSORY NOTE REPRESENTS THE FINAL
AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO
UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

EXECUTION DATE: Effective as of August 31, 2001.

                                    COAST DENTAL SERVICES, INC.,
                                    a Delaware Corporation

                                    By: /s/ William Geary
                                        --------------------------------------
                                        William Geary, Chief Financial Officer

                                                    (Corporate Seal)

STATE OF GEORGIA
COUNTY OF FULTON

         THE FOREGOING INSTRUMENT WAS ACKNOWLEDGED BEFORE ME THIS 31TH DAY OF
AUGUST 2001, BY WILLIAM GEARY, AS CHIEF FINANCIAL OFFICER OF COAST DENTAL
SERVICES, INC., A DELAWARE CORPORATION, ON BEHALF OF THE CORPORATION. HE IS
PERSONALLY KNOWN TO ME OR HAS PRODUCED FL LICENSE AS IDENTIFICATION.

                                    Hazel Walker
                                    --------------------------------------------
                                    Notary Public

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

                                    My commission expires:

                                    Notary Public, Fulton County, Georgia
                                    My Commission Expires July 11, 2003

436408.04                                                        Promissory Note
Bank of America, N.A.

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