Document:

PROMISSORY NOTE

$5,500,000.00                                                   Denver, Colorado
                                                               September 1, 1999

1.       Agreement to Pay. FOR VALUE RECEIVED,  the undersigned,  CAX RIVERSIDE,
         L.L.C., a Delaware limited liability company  (hereinafter  referred to
         as the  "Borrower"),  whose mailing  address is 3410 S. Galena  Street,
         Suite 210, Denver, Colorado 80231, hereby agrees and promises to pay to
         the order of MINNESOTA LIFE INSURANCE COMPANY, a Minnesota corporation,
         its endorsees,  successors and assigns (hereinafter  referred to as the
         "Lender"),  at its principal office and mailing address at c/o Advantus
         Capital Management,  Inc., 400 Robert Street North, St. Paul, Minnesota
         55101-2098,  or such  other  place as the  Lender may from time to time
         designate,  the principal sum of Five Million Five Hundred Thousand and
         00/100 Dollars ($5,500,000.00),  or so much as may from time to time be
         disbursed  hereon,  together  with  interest  on the  unpaid  principal
         balance at the rates  provided  for herein,  payable in lawful money of
         the United States of America which shall be legal tender for public and
         private debts at the time of payment.

2.       Interest  Rate.  The  outstanding  principal  balance hereof shall bear
         interest at the rate of Six and  seven-tenths  percent (6.7%) per annum
         (hereinafter  referred to as the  "Regular  Rate").  Interest  shall be
         computed  on the  basis  of a  three  hundred  sixty  (360)  day  year,
         consisting of twelve (12) successive  thirty (30) day months.  Interest
         for periods of less than one (1) month shall be computed by multiplying
         the monthly  interest  amount as computed  above times a fraction,  the
         numerator of which is the actual  number of days elapsed in said period
         and the  denominator of which is the actual number of days contained in
         the month for which the computation is being made.

3.       Late  Charge.  Any  payment  of  principal,  interest  and/or  tax  and
         insurance  escrows not made by the Borrower within five (5) days of the
         due date  thereof  shall be subject to a late  payment  charge equal to
         four percent (4%) of the  delinquent  payment  amount.  The late charge
         shall  apply  individually  to all  payments  past  due  with no  daily
         adjustment and shall be used to defray the costs of the Lender incident
         to collecting such late payment.  This provision shall not be deemed to
         excuse a late  payment  or be deemed a waiver of any other  rights  the
         Lender  may have  including  the right to  declare  the  entire  unpaid
         principal and interest immediately due and payable.

4.       Default Rate. Upon the occurrence of an Event of Default  hereunder the
         interest  rate shall  thereafter  increase  and shall be payable on the
         whole of the unpaid principal balance at a rate equal to twelve percent
         (12%) per annum (hereinafter  referred to as the "Default Rate"), which
         Default  Rate shall be effective  as of the date of the  occurrence  of
         such Event of Default. The above increase in the interest rate upon the
         occurrence of an Event of Default  shall be  applicable  whether or not
         the Lender has exercised its option to accelerate  the maturity of this
         Note and declared the entire unpaid  principal  indebtedness  to be due
         and  payable.  The  Default  Rate  shall  continue  until such Event of
         Default is cured, payment in full of all indebtedness evidenced by this
         Note, or  completion  of all  foreclosure  proceedings  and  redemption
         periods, whichever shall occur first.
<PAGE>

5.       Monthly  Payments.  Principal and interest upon this Note shall be paid
         as follows:

         a.     Interest  only on the unpaid  principal  balance at the  Regular
                Rate  shall be due and  payable in advance on the date funds are
                disbursed  hereunder in an amount equal to interest accrued from
                and including the date of disbursement hereunder to the last day
                of September, 1999.

         b.     On the first (1st) day of November,  1999,  and on the first day
                of each month  thereafter,  principal and interest  shall be due
                and payable in equal monthly  installments of Forty-One Thousand
                Six Hundred  Fifty-Six  and 68/100  Dollars  ($41,656.68)  until
                October  1,  2019  (hereinafter  referred  to as  the  "Maturity
                Date"),  on  which  date the  entire  unpaid  principal  balance
                together with all accrued  interest,  if not sooner paid,  shall
                become due and payable.

         All payments  shall be applied  first to late charges and  Reinvestment
         Charge and/or  Default  Premium,  as defined below,  if any,  second to
         interest at the rate then in effect under the terms hereof and third to
         principal,  provided however, that if any advance made by the Lender as
         the result of a default on the part of the Borrower  under the terms of
         this Note or any instrument securing this Note is not repaid on demand,
         any monies received,  at the option of the Lender, may first be applied
         to repay such advances,  plus interest thereon at the Default Rate, and
         the balance, if any, shall be applied in accordance with the provisions
         hereof.

6.       Security. This Note is given to evidence a loan in the above amount and
         is the Note referred to in and secured by:

         a.     A  Mortgage  and  Security   Agreement  and  Fixture   Financing
                Statement  (hereinafter  referred to as the "Mortgage") given by
                Borrower, as mortgagor,  to Lender, as mortgagee,  dated of even
                date herewith,  encumbering the Borrower's  interest in the real
                property and all improvements,  fixtures, equipment and personal
                property thereon located in the County of Hillsborough, State of
                Florida (hereinafter referred to as the "Premises"); and

         b.     An  Assignment of Leases and Rents  (hereinafter  referred to as
                the "Assignment of Leases") given by Borrower,  as assignor,  to
                Lender, as assignee,  dated of even date herewith,  assigning to
                Lender  all of the  rents,  issues,  profits  and  leases of the
                Premises; and

         c.     Other collateral security documents  (hereinafter referred to as
                the "Security Documents") given by Borrower to Lender, all dated
                of even date herewith.

         Reference is hereby made to the Mortgage,  the Assignment of Leases and
         the Security  Documents (which are incorporated  herein by reference as
         fully and with the same effect as if set forth  herein at length) for a
         description  of  the  Premises,   a  statement  of  the  covenants  and
         agreements,  a  statement  of the rights and  remedies  and  securities
         afforded thereby and all other matters contained therein.

                                     - 2 -
<PAGE>

7.       Default and  Acceleration.  The  occurrence of an Event of Default,  as
         defined in the Mortgage, shall constitute an Event of Default hereunder
         (hereinafter  referred  to as an "Event of  Default"),  and the  entire
         unpaid principal  balance together with accrued interest at the Default
         Rate shall become,  without notice,  immediately due and payable at the
         option of the Lender. No delay or omission on the part of the Lender in
         exercising any right  hereunder shall operate as a waiver of such right
         or of any other  remedy  under this Note.  A waiver on any one occasion
         shall  not be  construed  as a bar to or  waiver  of any such  right or
         remedy on a future occasion.

8.       Prepayment Privilege.  The indebtedness evidenced hereby may be prepaid
         in accordance with the provisions of this Section 8 and not otherwise.

         a.     For the  purposes  hereof,  the term  "Loan  Year"  shall mean a
                period  consisting of twelve (12) consecutive  months commencing
                on the first  (1st) day of October or any  anniversary  thereof,
                the first  (1st)  Loan Year being the Loan Year  commencing  the
                first (1st) day of October, 1999.

         b.     Prior to the expiration of the fifth (5th) Loan Year no payments
                of principal may be made hereon other than the scheduled monthly
                installment  payments of  principal  and  interest  set forth in
                Section 5 hereof.

         c.     After the  expiration  of the fifth (5th) Loan Year and prior to
                the end of the tenth  (10th) Loan Year,  the Borrower may prepay
                this Note in full but not in part,  provided such  prepayment is
                accompanied by a reinvestment charge (hereinafter referred to as
                the "Reinvestment Charge"). The Reinvestment Charge with respect
                to the  period  commencing  on the first  (1st) day of the sixth
                (6th) Loan Year and expiring on the last day of the tenth (10th)
                Loan  Year  shall  be equal to the  excess,  if any,  of (i) the
                aggregate  present  value as of the date of such  prepayment  of
                each  dollar  of  principal  being  prepaid  and the  amount  of
                interest  that would have been payable in respect of such dollar
                if such prepayment had not been made,  determined by discounting
                such amounts at the Reinvestment  Rate,  defined below, from the
                respective  dates on which they would  have been  payable,  over
                (ii) one hundred percent (100%) of the principal  amount of this
                Note being prepaid.  "Reinvestment Rate" shall mean the yield to
                maturity  of the U.S.  Treasury  Note or Bond  for the  maturity
                (rounded to the nearest  month)  corresponding  to the  weighted
                average life to maturity of the principal  being prepaid or paid
                (as  reported  in the Wall  Street  Journal  on the fifth  (5th)
                business day preceding the date of prepayment).

         d.     The Borrower may prepay this Note,  in full but not in part,  at
                any  time  after  the  tenth  (10th)  Loan  Year  provided  such
                prepayment is accompanied by a Reinvestment  Charge in an amount
                equal to five percent (5%) of the principal  amount prepaid with
                respect to prepayments  made in the eleventh  (11th) and twelfth
                (12th) Loan Years, such Reinvestment Charge thereafter declining
                one percent (1%) during each Loan Year thereafter until the same
                shall be  reduced to one  percent  (1%),  where it shall  remain

                                     - 3 -
<PAGE>

                until ninety (90) days prior to the Maturity Date.

         e.     The  Borrower  may prepay this Note in full but not in part,  at
                par, and without  payment of a  Reinvestment  Charge  during the
                period commencing ninety (90) days prior to the Maturity Date.

         f.     At the  option  of the  Lender,  this  Note is also  subject  to
                mandatory  prepayment  upon  certain  events  set  forth  in the
                Mortgage including prepayments required by Lender to be made out
                of proceeds of insurance or  condemnation  awards.  In each such
                instance, the terms of the Mortgage shall govern with respect to
                the  requirement  for the  payment of a  Reinvestment  Charge or
                Default Premium.

         g.     Any prepayment  (other than  prepayments  pursuant to Subsection
                8(f) above) shall be made on a regularly  scheduled  installment
                payment date,  shall be made only upon thirty (30) days' advance
                written notice to the Lender,  and all such prepayments shall be
                applied to required monthly installment payments of principal in
                the inverse order of their scheduled due dates.

         h.     Any prepayment of all or any portion of the principal balance of
                this Note made  prior to the end of the fifth  (5th)  Loan Year,
                for  whatever  reason  (other  than   prepayments   pursuant  to
                Subsection 8(f) above), whether voluntary or involuntary,  shall
                constitute  an Event of Default  hereunder,  and, in addition to
                the other  rights and  remedies  provided  for herein and in the
                Mortgage,  the  Assignment  of  Leases  or  any  other  Security
                Document, the Borrower shall be obligated to pay to the Lender a
                default  prepayment  premium  (hereinafter  referred  to as  the
                "Default  Premium")  in an  amount  equal to the sum of (i) four
                percent  (4%) of the amount of  principal  prepaid  and (ii) the
                applicable  Reinvestment  Charge  computed  in  accordance  with
                Section 8(c) above.

9.       Prepayment Upon An Event of Default. Upon the occurrence of an Event of
         Default under this Note and following  acceleration  of maturity hereof
         by the  Lender,  a tender of  payment of or entry of  judgment  for the
         amount  necessary  to  satisfy  the  entire  unpaid  principal  balance
         declared  due and payable  shall be deemed to  constitute  an attempted
         evasion of the aforesaid  restrictions  on the right of prepayment  and
         shall be deemed a  prepayment  hereunder,  and such payment or judgment
         must, therefore,  include the applicable Reinvestment Charge or Default
         Premium   payable  under  the  terms  hereof  in  connection  with  any
         prepayment.

10.      Costs of Collection. The Borrower agrees that if, and as often as, this
         Note is placed in the hands of an attorney for  collection or to defend
         or enforce any of the Lender's rights  hereunder or under the Mortgage,
         the  Assignment  of  Leases  or any other  Security  Document  securing
         payment  of  this  Note,  the  Borrower  will  pay  to the  Lender  its
         attorneys'  fees and all court  costs  (including  attorney's  fees and
         court  costs  prior  to  trial,  at  trial  and  on  appeal,  or in any
         bankruptcy  proceeding)  and  other  expenses  incurred  in  connection
         therewith.

                                     - 4 -
<PAGE>

11.      Time.  Time is of the  essence of this Note and each of the  provisions
         hereof.

12.      Governing  Law. This Note shall be governed by the laws of the State of
         Florida.

13.      Interest Limitation. All agreements between the Borrower and the Lender
         are  hereby  expressly  limited  so that  in no  contingency  or  event
         whatsoever,  whether  by  reason of  acceleration  of  maturity  of the
         indebtedness  evidenced  hereby or otherwise,  shall the amount paid or
         agreed to be paid to the  Lender for the use,  forbearance,  loaning or
         detention  of the  indebtedness  evidenced  hereby  exceed the  maximum
         permissible under applicable law. If from any circumstances whatsoever,
         fulfillment of any provisions hereof or of the Mortgage,  Assignment of
         Leases or any other  Security  Document at any time given shall  exceed
         the maximum  permissible  under applicable law, then, the obligation to
         be fulfilled shall automatically be reduced to an amount which complies
         with  applicable law, and if from any  circumstances  the Lender should
         ever  receive as  interest  an amount  which  would  exceed the highest
         lawful rate of  interest,  such amount which would be in excess of such
         lawful  rate of  interest  shall be  applied  to the  reduction  of the
         principal  balance evidenced hereby and not to the payment of interest.
         This  provision  shall control every other  provision of all agreements
         between  the  Borrower  and Lender  and shall also be binding  upon and
         available to any subsequent holder of this Note.

14.      Waivers. The Borrower,  endorsers,  sureties,  guarantors and all other
         persons liable for all or any part of the principal  balance  evidenced
         by this Note severally waive presentment for payment,  protest,  notice
         of  nonpayment  and notice of dishonor.  Such parties  hereby  consent,
         without  affecting their  liability,  to any extension or alteration of
         the time or terms of payment hereof, any renewal, any release of any or
         all of the security  given for the payment  hereof,  any  acceptance of
         additional  security of any kind,  and any release of, or resort to any
         party liable for payment hereof.

15.      Disbursement.  Funds  representing  the  proceeds  of the  indebtedness
         evidenced  hereby  which are  disbursed  by the  Lender  by mail,  wire
         transfer or other delivery to the Borrower, to escrows or otherwise for
         the  benefit  of the  Borrower  shall,  for  all  purposes,  be  deemed
         outstanding  hereunder  and to have been received by the Borrower as of
         the date of such mailing,  wire transfer, or delivery and until repaid,
         notwithstanding  the fact that such funds may not at any time have been
         remitted by such escrows to the Borrower or for its benefit.

16.      Captions. The captions to the Sections of this Note are for convenience
         only  and  shall  not be  deemed  part of the  text  of the  respective
         Sections and shall not vary, by  implication  or otherwise,  any of the
         provisions of this Note.

17.      Notices. All notices required or permitted to be given hereunder to the
         Borrower or the Lender shall be given in the manner and to the place as
         provided in the Mortgage for notices to the Mortgagor or the Mortgagee.

                                     - 5 -
<PAGE>

18.      Due-on-Sale-and-Encumbrance   Provisions.  The  Mortgage  provides  for
         certain  rights  on the  part of the  Lender  to call  all  outstanding
         principal  and  accrued  interest  on this Note due and payable in full
         together with the Reinvestment Charge or Default Premium then in effect
         under  the terms of this Note in the  event  that (a)  Borrower  should
         sell,  convey,  contract  to sell or  convey,  assign or  encumber  any
         property,  real or personal,  encumbered  by the  Mortgage,  or (b) any
         member interests in the Borrower should be sold, conveyed,  assigned or
         encumbered, without, in each instance, the prior written consent of the
         Lender.  Reference to the Mortgage  must be made for the terms of these
         provisions. Such provisions are incorporated herein by this reference.

19.      Partial Non-Recourse to the Borrower.  Notwithstanding  anything to the
         contrary  contained herein, the Borrower shall have no liability to pay
         the outstanding principal balance of this Note or any interest that may
         accrue  thereon,  all such  liability  being  expressly  waived  by the
         Lender,  and the  Lender's  monetary  remedies  under  this  Note,  the
         Mortgage  and  the  Assignment  of  Leases  shall  be  limited  to  the
         Borrower's interest in the Premises and the improvements,  furnishings,
         equipment, leases and rents on which the Mortgage and the Assignment of
         Leases  constitute  a  lien.   Notwithstanding  the  foregoing,  it  is
         expressly  understood  and  agreed  that the  aforesaid  limitation  on
         liability shall in no way effect or apply to the continued liability of
         the Borrower and Commercial Assets,  Inc. for the payment to the Lender
         of: (i) any rents,  issues,  profits or income  which have been prepaid
         more than thirty (30) days in advance; (ii) any rents, issues,  profits
         or  income  collected  by the  Borrower  from the  Premises  after  the
         occurrence  of an Event of Default  under the terms of this  Note,  the
         Mortgage,  the  Assignment of Leases or any other  instrument  securing
         this Note;  (iii)  security  deposits  made by tenants of the Premises;
         (iv)  payments  of all  real  estate  taxes,  special  assessments  and
         insurance  premiums;  (v) insurance  proceeds and condemnation  awards,
         payments and consideration which the Borrower receives and to which the
         Lender is entitled  pursuant to the terms of this Note,  the  Mortgage,
         the Assignment of Leases or of any other instrument securing this Note;
         (vi)   loss  or   damage   suffered   by  the   Lender   arising   from
         misrepresentation  or fraud in  connection  with the loan  evidenced by
         this Note  occurring  as the result of the actions or  inactions of the
         Borrower;  (vii) loss or damage  suffered  by the Lender  occurring  by
         reason of the existence of Hazardous Materials or Wastes, as defined in
         Article 9 of the Mortgage, associated with the Premises or occurring by
         reason of the  failure of the  Borrower  to  observe  and  perform  its
         covenants and  indemnities  respecting the release or discharge of such
         Hazardous  Materials  or Wastes  as set forth in both  Article 9 of the
         Mortgage and in the Indemnity Agreement described in Section 2.9 of the
         Mortgage;  (viii) reasonable  attorney's fees incurred by the Lender as
         provided for in this Note,  the Mortgage,  the  Assignment of Leases or
         any other  instrument  securing this Note;  (ix) damages arising out of
         the  Borrower's  failure  to  comply  with  any  of the  leases  on the
         Premises;  and (x)  damages to the  Premises  from waste  committed  or
         permitted by the Borrower or from a failure by Borrower to maintain the
         Premises  in the  manner  required  by the  terms  of  this  Note,  the
         Mortgage,  the Assignment and all other instruments securing this Note.
         Nothing  contained  herein  shall be deemed to  release  any  entity or
         person,  including the Borrower and Commercial Assets, Inc., from their
         obligations  under the terms of any  separate  Indemnity  Agreement  or
         Guaranty executed in connection with the loan evidenced by this Note.

                                     - 6 -
<PAGE>

20.      WAIVER OF JURY TRIAL. NEITHER LENDER,  BORROWER, ANY GUARANTOR OR OTHER
         PERSON OR ENTITY LIABLE FOR THE INDEBTEDNESS  EVIDENCED HEREBY, NOR ANY
         ASSIGNEE,   SUCCESSOR,  HEIR  OR  PERSONAL  REPRESENTATIVE  OF  LENDER,
         BORROWER, ANY GUARANTOR OR ANY SUCH OTHER PERSON OR ENTITY SHALL SEEK A
         JURY  TRIAL  IN ANY  LAWSUIT,  PROCEEDING,  COUNTERCLAIM  OR ANY  OTHER
         LITIGATION  PROCEDURE  BASED  UPON OR  ARISING  OUT OF THIS  NOTE,  THE
         MORTGAGE,  ANY OTHER OF THE SECURITY DOCUMENTS,  ANY RELATED INSTRUMENT
         OR AGREEMENT,  ANY COLLATERAL FOR THE PAYMENT HEREOF OR THE DEALINGS OR
         THE RELATIONSHIP  BETWEEN OR AMONG SUCH PERSONS OR ENTITIES,  OR ANY OF
         THEM.  NEITHER  LENDER,  BORROWER  NOR ANY  GUARANTOR OR ANY SUCH OTHER
         PERSON OR ENTITY WILL SEEK TO CONSOLIDATE  ANY SUCH ACTION,  IN WHICH A
         JURY TRIAL HAS BEEN WAIVED, WITH ANY OTHER ACTION IN WHICH A JURY TRIAL
         CANNOT BE OR HAS NOT BEEN WAIVED. THE PROVISIONS OF THIS PARAGRAPH HAVE
         BEEN FULLY DISCUSSED BY THE PARTIES HERETO,  AND THE PROVISIONS  HEREOF
         SHALL BE SUBJECT TO NO EXCEPTIONS.  NO PARTY HAS IN ANY WAY AGREED WITH
         OR REPRESENTED TO ANY OTHER PARTY THAT THE PROVISIONS OF THIS PARAGRAPH
         WILL NOT BE FULLY ENFORCED IN ALL INSTANCES.

         IN WITNESS  WHEREOF,  the Borrower has executed this Promissory Note as
of the date and year first above written.

                                     CAX RIVERSIDE, L.L.C.,
                                     a Delaware limited liability company

                                     By:      COMMERCIAL ASSETS, INC.,
                                              a Delaware corporation

                                              By: /s/David M. Becker
                                                 -------------------------------
                                                    David M. Becker
                                              Its:  Chief Financial Officer

                                     Its: Member and Manager

         FLORIDA  DOCUMENTARY  STAMP TAXES REQUIRED TO BE PAID ON ACCOUNT OF THE
INDEBTEDNESS  EVIDENCED  HEREBY  HAVE  BEEN PAID AND THE  DOCUMENTARY  STAMPS SO
PURCHASED HAVE BEEN AFFIXED TO THE MORTGAGE SECURING THIS NOTE.

                                     - 7 -SCHEDULE OF OMITTED
                                 PROMISSORY NOTE

The  Company  has also  entered  into an  additional  Promissory  Note  which is
substantially  identical  to the  following  Promissory  Note  in  all  material
respects  except as to the company,  interest rate and amount.  Listed below are
the material  details in which such documents  differ from the document filed as
part of this exhibit.

               Company                  Interest Rate               Amount
---------------------------------    --------------------      -----------------

CAX La Casa Blanca, L.L.C.                   7.92%                $3,840,000.00

<PAGE>

                                                        PPM Loan No. 99-0087- AZ

                                 PROMISSORY NOTE

$6,270,000.00                                                   January 19, 2000

         1.  Promise to Pay. FOR VALUE  RECEIVED,  the  undersigned,  CAX RANCHO
MIRAGE, L.L.C., a Delaware limited liability company,  ("Maker") hereby promises
to pay to the order of  JACKSON  NATIONAL  LIFE  INSURANCE  COMPANY,  a Michigan
corporation, its successors or assigns ("Noteholder"),  the principal sum of Six
Million Two Hundred Seventy Thousand and No/100ths Dollars ($6,270,000.00), with
interest on the unpaid  principal  balance  thereof  from the date hereof  until
maturity  at the  rate  of  Seven  and  86/100ths  percent  (7.860%)  per  annum
("Interest  Rate"),  both  principal and interest  being payable as  hereinafter
provided  in lawful  money of the United  States of  America at 225 West  Wacker
Drive, Suite 1200,  Chicago,  Illinois 60606 or at such other place as from time
to time may be designated by  Noteholder.  Interest shall be calculated and paid
on the basis of a 30-day month and 360-day year.

         2. Payments. A payment of interest only on the unpaid principal balance
of this Note shall be due and payable in advance on the date hereof in an amount
equal to interest accrued from and including the date hereof through January 31,
2000. Maker agrees to pay Noteholder monthly  installment  payments of Fifty-One
Thousand Eight Hundred Ninety-Nine and 81/100 Dollars  ($51,899.81) of principal
and  interest on the first (1st) day of March,  2000 and on the same day of each
succeeding  month through and  including  the first (1st) day of February,  2020
(the "Maturity Date"), on which date all unpaid principal and interest, together
with any other sums due under the terms of this Note, shall be due and payable.

         3.  Treatment of Payments.  All payments of principal,  interest,  late
charges (as described  below),  and prepayment  premium (as described below), if
any, due under this Note shall be paid to  Noteholder  by wire transfer or check
or immediately  available funds to such bank or place, and in such other manner,
as Noteholder  may from time to time  designate.  If such payment is received by
2:00 p.m.,  such payment  will be credited to Maker's  account as of the date on
which  received.  If such payment is received after 2:00 p.m., such payment will
be credited to Maker's  account on the business day next  following  the date on
which received.  Each installment payment under this Note shall be applied first
to the  payment of any cost or expense for which  Maker is liable  hereunder  or
under the other Loan  Documents,  including  any  unpaid  late  charge,  then to
accrued interest and the remainder to the reduction of unpaid principal. Time is
of the essence as to all payments hereunder.

         4.  Late  Charges.  If any  monthly  installment  of  principal  and/or
interest  is not paid in full on or  before  the tenth day of the month in which
such  payment is due,  then a charge for late  payment  ("Late  Charge")  in the
amount  of  five  percent  (5%)  of the  amount  of such  installment  shall  be
immediately  assessed  and shall be  immediately  due and payable by Maker.  The

<PAGE>

parties hereby  recognize that the Late Charge is a reasonable  approximation of
an actual loss  difficult  to  estimate.  Maker's  failure to collect  such Late
Charge shall not constitute a waiver of Maker's right to require payment of such
Late Charge for past or future defaults. The Late Charge shall be in addition to
all other rights and remedies  available to Noteholder  upon the occurrence of a
default under the Loan Documents.

         5. Default Interest. Upon the occurrence of (a) an Event of Default (as
defined in the Loan  Agreement)  or (b)  maturity of this Note,  interest  shall
accrue  hereunder at an annual rate (the "Default  Rate") equal to the lesser of
(i) eighteen percent (18%) and (ii) the maximum rate allowed by law. The Default
Rate shall accrue on the entire outstanding balance hereof,  including,  without
limitation,  delinquent  interest and any and all costs and expenses incurred by
Noteholder in connection therewith.

         6.  Security.  This Note is made  pursuant to a Loan  Agreement of even
date herewith (the "Loan  Agreement") and secured by, among other things, a Deed
of Trust,  Security Agreement and Financing  Statement  (hereinafter  called the
"Deed of Trust") of even date  herewith  in favor of Lawrence  C.  Petrowski,  a
Member of the Bar of the State of Arizona, as Trustee for the benefit of Jackson
National Life  Insurance  Company  evidencing a lien on certain real property in
Pinal County, Arizona,  described therein, and evidencing a security interest in
certain personal property, fixtures and equipment described therein. Capitalized
terms not  otherwise  defined  herein shall have the  meanings  ascribed to such
terms in the Loan Agreement.

         7.  Event  of  Default.  Upon the  failure  to pay any  installment  of
principal  and/or  interest  due on this  Note as  above  promised  or upon  the
occurrence of an Event of Default, Noteholder shall have the option of declaring
the  indebtedness  evidenced hereby to be immediately due and payable ("the Loan
Acceleration").  After Loan  Acceleration,  Noteholder  shall have the option of
applying any  payments  received to principal or interest or any other costs due
pursuant to the terms of this Note or the Loan Documents.

         8.  Prepayment.  No prepayment of the principal  balance of the Note is
allowed  during  the  first  one  hundred  twenty  (120)  months  of  the  Loan.
Thereafter,  prepayment is permitted at any time, in full but not in part,  upon
thirty (30) days' written notice,  with payment to Lender of a yield maintenance
premium ("Premium") equal to (i) the greater of 1% of the outstanding  principal
balance  at the  time of  prepayment  or (ii) the  present  value on the date of
prepayment of all future  principal  and interest  payments  beginning  with the
payment due on the second  month  following  the  pay-off  date,  including  any
balloon payments  assuming payment in accordance with the repayment terms of the
Note less the current  outstanding  principal  balance of the Loan. The interest
rate used in  calculating  the present  value  shall be the  Treasury  Rate,  as
defined herein,  plus 25 basis points,  then divided by twelve.  "Treasury Rate"
shall be the yield as reported by  Bloomberg  L.P. of U.S.  Government  Treasury
Securities  having a maturity date which is the same as the Maturity Date of the
Loan three (3) business days prior to the prepayment of the Loan  ("Index").  If
for any reason such index is not published,  the Treasury Rate shall be based on
the yields  reported  in  another  publication  of  comparable  reliability  and
institutional  acceptance as selected by the Lender in its sole discretion which

                                       2
<PAGE>

most closely  approximates yields in percent per annum of selected U.S. Treasury
securities  of  varying  maturities.  If no  Treasury  Constant  Maturities  are
published for the specific  length of time to the Maturity Date, the index to be
utilized  shall be the  weighted  average of the  Treasury  Constant  Maturities
published for the two periods most nearly corresponding to the Maturity Date. No
Premium shall apply to a payment in full during the last ninety (90) days of the
Loan term or due to taking  through  condemnation  or a  casualty  where  Lender
applies proceeds to pay down the Loan. No involuntary  partial  prepayment shall
suspend  or  reduce  any  required  installment  payments.  If the Loan has been
accelerated,  and Borrower wishes to pay the Loan in full, the payment  tendered
must include either (i) the  applicable  prepayment  premium,  if the payment is
tendered  during a period when  prepayment is permitted  under the Note, or (ii)
the greater of such  prepayment  premium or 10% of the principal  amount owed on
the date of default,  if the payment is tendered during a period when prepayment
is prohibited under the Note.

         9. Limitation on Personal  Liability.  Anything contained herein to the
contrary  notwithstanding,  it is expressly  understood  and agreed that nothing
herein shall be  construed  as creating any personal  liability on Maker (or, if
Maker is a partnership, any of its general partners) to pay any amount due under
this Note or any other  Loan  Document  except  that Maker  (and,  if Maker is a
partnership,  its general  partners) shall be liable for and shall indemnify and
defend  Noteholder  against,  and hold  Noteholder  harmless  from  and  against
Noteholder's costs,  expenses (including reasonable attorney's fees), losses and
damages  caused  by or  related  to  any  of  the  following  "Recourse  Events"
committed,   permitted  or  omitted  by  Maker,  its  agents,  employees  and/or
contractors: (i) waste to or of the Project or a failure to maintain the Project
as a  first  class  manufactured  housing  community;  (ii)  fraud  or  material
misrepresentation by Maker; (iii) failure to pay, or to make sufficient payments
into the Escrow  Account  pursuant to Section 3.1 of the Loan  Agreement  to pay
insurance  premiums,  taxes,  assessments,  ground  rent or any  other  lienable
impositions as required under the Loan Documents;  (iv) misapplication of tenant
security  deposits,  insurance  proceeds or condemnation  proceeds;  (v) failure
while in monetary default to pay to Noteholder all rents,  income and profits of
and from the Project,  net of reasonable and customary operating expenses;  (vi)
breach  of or  failure  to  perform  under  the  environmental  representations,
warranties,  covenants or indemnifications described in Section 3.19 of the Loan
Agreement and further agreed to the  Environmental  Indemnity  Agreement;  (vii)
destruction or removal of fixtures or personal  property securing this Note from
the  Project,  unless  replaced by items of equal  value;  (viii)  Intentionally
Deleted;  (ix)  failure  of the  Project  to  comply  with  the  Americans  with
Disabilities Act of 1990, as amended,  the Fair Housing Act of 1988, as amended,
or any other similar Building Laws after any Governmental Authority has notified
Maker, its agents,  employees  and/or  contractors of such  non-compliance;  (x)
failure to pay to Noteholder any rent, income or profits which have been prepaid
more than thirty (30) days in advance if such advance payments exceed 10% of the
total  annual  rental  income;  (xi) willful or grossly  negligent  violation of
applicable  law; and (xii) failure of Maker to pay all amounts payable under the
Note in full,  together with  reasonable  attorney  fees, if Maker  transfers or
encumbers the Project in contravention of the Loan Documents, or (xiii) if Maker
files a voluntary  petition under Chapter 11 of the Bankruptcy Code prior to the
one-year  anniversary  of the transfer of title to the Project to  Noteholder by
foreclosure  of deed or other  conveyance in lieu of  foreclosure  or otherwise.

                                       3
<PAGE>

Nothing set forth herein  shall  restrict or impede any other right or remedy of
Noteholder upon the occurrence of an Event of Default.

         10. Non-Usurious Loan. It is the intent of Noteholder and Maker in this
Note and the  other  Loan  Documents  now or  hereafter  securing  this  Note to
contract in strict compliance with applicable usury law. In furtherance thereof,
Noteholder  and Maker  stipulate and agree that none of the terms and provisions
contained  in this  Note,  or in any other  instrument  executed  in  connection
herewith  including  but  not  limited  to the  Loan  Documents,  shall  ever be
construed to create a contract to pay for the use,  forbearance  or detention of
money, or interest at a rate in excess of the maximum interest rate permitted to
be charged by applicable  law.  Neither Maker nor any  guarantors,  endorsers or
other  parties now or hereafter  becoming  liable for payment of this Note shall
ever be required to pay interest on this Note at a rate in excess of the maximum
interest that may be lawfully  charged under  applicable law, and the provisions
of this paragraph shall control over all other provisions of this Note, the Loan
Documents  and any other  instruments  now or hereafter  executed in  connection
herewith  which  may be in  apparent  conflict  herewith.  Noteholder  expressly
disavows  any  intention  to charge or collect  excessive  unearned  interest or
finance  charges in the event the maturity of this Note is  accelerated.  If the
maturity of this Note is accelerated  for any reason or if the principal of this
Note is paid prior to the Maturity  Date,  and as a result  thereof the interest
received for the actual period of existence of this Note exceeds the  applicable
maximum lawful rate,  Noteholder shall, at its option,  either refund the amount
of such excess or credit the amount of such excess against the principal balance
of this Note then outstanding and thereby shall render  inapplicable any and all
penalties  of any kind  provided  by  applicable  law as a result of such excess
interest.  In the event  that  Noteholder  collects  monies  which are deemed to
constitute  interest  which would  increase the effective  interest rate on this
Note to a rate in excess of that permitted to be charged by applicable  law, all
such sums deemed to constitute interest in excess of the lawful rate shall, upon
such determination,  at the option of Noteholder, be either immediately returned
or credited  against the  principal  balance of this Note then  outstanding,  in
which event any and all penalties of any kind under  applicable  law as a result
of such excess interest shall be  inapplicable.  By execution of this Note Maker
acknowledges  that it  believes  this  Note and all  interest  and fees  paid in
connection  with the loan  represented by this Note, to be  non-usurious.  Maker
agrees that if, at any time,  Maker  should  believe  that this Note or the loan
represented by this Note is in fact usurious,  Maker will give Noteholder notice
of such condition and Maker agrees that  Noteholder  shall have ninety (90) days
in which to make appropriate refund or other adjustment in order to correct such
condition if in fact such condition exists. The term "applicable law" as used in
this Note  shall mean the laws of the State of Arizona or the laws of the United
States, whichever allows the greater rate of interest, as such laws now exist or
may be changed or amended or come into effect in the future.

         11. Noteholder's Attorney Fees. Should the indebtedness  represented by
this Note or any part  thereof be  collected  at law or in equity or through any
bankruptcy,  receivership, probate or other court proceedings or if this Note is
placed in the hands of attorneys for collection after default, or if the lien or
priority  of the  lien  represented  by the  Deed of  Trust  or the  other  Loan
Documents  is the  subject  of any court  proceeding,  Maker and all  endorsers,
guarantors  and  sureties  of this Note  jointly and  severally  agree to pay to

                                       4
<PAGE>

Noteholder  in addition to the  principal  and interest  due and payable  hereon
reasonable  attorney and collection  fees including those incurred by Noteholder
for any appeal.

         12. Maker's Waivers.  Maker and all endorsers,  guarantors and sureties
of this Note and all  other  persons  liable  or to  become  liable on this Note
severally  waive  presentment  for  payment,  demand,  notice of  demand  and of
dishonor and  nonpayment  of this Note,  notice of intention to  accelerate  the
maturity of this Note,  notice of  acceleration,  protest and notice of protest,
diligence in collecting,  and the bringing of suit against any other party,  and
agree to all renewals, extensions,  modifications, partial payments, releases or
substitutions of security,  in whole or in part, with or without notice,  before
or after maturity.

         13.  Payment  of Taxes  and Fees.  Maker  agrees to pay the cost of any
revenue, tax or other documentary fee or stamps now or hereafter required by law
to be affixed to this Note or the Deed of Trust.

         14. Governing Law. This Note and the rights,  duties and liabilities of
the  parties  hereunder  and/or  arising  from  or  relating  in any  way to the
indebtedness   evidenced  by  this  Note  or  the   transaction  of  which  such
indebtedness  is a part shall be governed and  construed for all purposes by the
law of the State of Arizona.

         15. WAIVER OF TRIAL BY JURY. MAKER HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED  BY LAW,  THE  RIGHT  TO TRIAL BY JURY IN ANY  ACTION,  PROCEEDING  OR
COUNTERCLAIM,  WHETHER IN  CONTRACT,  TORT OR  OTHERWISE,  RELATING  DIRECTLY OR
INDIRECTLY TO THE LOAN, THE  APPLICATION FOR THE LOAN, THE LOAN DOCUMENTS OR ANY
ACTS OR OMISSIONS OF NOTEHOLDER, ITS OFFICERS, EMPLOYEES, DIRECTORS OR AGENTS IN
CONNECTION THEREWITH.

         IN WITNESS  WHEREOF,  Maker has caused this Note to be duly executed as
of the day and year first above written.

                                    MAKER:

                                    CAX RANCHO MIRAGE, L.L.C.,
                                    a Delaware limited liability company

                                    By:  Commercial Assets, Inc.,
                                         a Delaware corporation, its Sole Member

                                         By:  /s/David M. Becker
                                             -------------------------
                                               David M. Becker
                                               Chief Financial Officer

                                    (Taxpayer ID Number) 84-1500766

                                       5
<PAGE>

STATE OF COLORADO                      )
                                       ) ss.
COUNTY OF DENVER                       )

         The foregoing  instrument was  acknowledged  before me this 19th day of
January,  2000 by David M. Becker,  as the Chief Financial Officer of Commercial
Assets,  Inc.,  a Delaware  corporation,  the Sole Member of CAX RANCHO  MIRAGE,
L.L.C., a Delaware limited liability company.

                                                 /s/ Lorri Owen
                                  ----------------------------------------------
                                  Notary Public in and for said County and State

My Commission Expires:

07/02/2001

                                       6

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