American Community Properties Trust Watch

from 10-K 1 page April 15, 2002 (Via Facsimile and First Class Mail) Firstbank Puerto Rico Commercial Credit Department 1519 Ponce De Leon Avenue Santurce, Puerto Rico Attention: Nelson Gonzalez Ladies/Gentlemen: Reference Is Made to That Certain Letter Dated July 13, 2001, Addressed to Firstbank Puerto Rico (The "Bank") by Land Development Associates, S.E. ("Lda"), Signed by Carlos R. Rodríguez Batilla on Behalf of Lda (The "Letter"), a Copy of Which Is Attached Hereto. This Will Confirm in Writing That the Bank Has Agreed to Amend the Letter by Rescinding Therefrom, Ab Initio, the Following Paragraph

from 10-K 1 page This Will Confirm in Writing That as Additional Consideration for the Bank's Agreement to Partially Rescind, Ab Initio, the Letter Pursuant to the Letter Agreement, We Will Redeem the Outstanding Balance of the Lda Note and Fully Repay Firstbank Puerto Rico the Outstanding Balance of Kembt's Obligations Under the Non-Revolving Credit Agreement Dated July 13, 2001, With the Proceeds of Additional Credit Facilities Under the Lda Loan Agreement, Which, if Approved, Under Acceptable Terms and Conditions With Respect to Tenor, Interest Rate, Collateral and Other Similar and Customary Considerations, We Bind Ourselves to Close Within the 30 Days Following Your Notice to US of Approval of Such Additional Financing. Notwithstanding the Above, the Acceptance Hereof by the Bank Shall Not Be Construed as a Commitment of the Bank to Grant the Abovementioned Credit Facilities. Very Truly Yours, Land Development Associates, S.E. a Puerto Rico Special Partnership By: Interstate General Properties Limited Partnership, a Maryland Limited Partnership, Its Managing Partner By: Igp Group Corp., a Puerto Rico Corporation, Its General Partner By: /S/ Edwin L. Kelly Name: Edwin L. Kelly Title: Senior Vice President Agreed and Acknowledged: Firstbank Puerto Rico (Lender) By: /S/ Carmen E. Rocafort

from 10-Q ~50 pages Banc One Loan Agreement