Document:

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WELLS
FARGO                         AMENDED, RESTATED AND CONSOLIDATED PROMISSORY NOTE

                                                            Loan No. 31-0900140R
$110,000,000.00                                        San Francisco, California
                                                                   June 28, 2000

            THIS AMENDED, RESTATED AND CONSOLIDATED PROMISSORY NOTE (this
"Note") is made and entered into by and between MHC-DEANZA FINANCING LIMITED
PARTNERSHIP, an Illinois limited partnership ("DeAnza"), SNOWBIRDLAND VISTAS,
INC., an Illinois corporation ("Snowbirdland") and MHC DATE PALM, L.L.C., a
Delaware limited liability company ("Date Palm") (DeAnza, Date Palm and
Snowbirdland are individually and collectively, as the context requires and with
such determination to be made in the sole discretion of Lender, referred to
herein as the "Borrower"), and WELLS FARGO NATIONAL BANK, NATIONAL ASSOCIATION
("Lender").

      RECITALS A. Lender is the holder of (a) that certain Secured Promissory
Note dated August 14, 1994, in the original principal amount of $2,218,975.33
and having a current outstanding principal balance of $2,015,403.20 ("Bay Lake
Note") made by Snowbirdland, as Agent for DeAnza, and DeAnza and payable to
Pacific Life Insurance Company, formerly known as Pacific Mutual Life Insurance
Company, a California Corporation ("Pacific"), (b) that certain Secured
Promissory Note dated August 14, 1994, in the original principal amount of
$8,081,491.39 and having a current outstanding principal balance of
$7,340,082.86 ("Buccaneer Note") made by Snowbirdland, as Agent for DeAnza, and
DeAnza and payable to Pacific, (c) that certain Secured Promissory Note dated
August 14, 1994, in the original principal amount of $13,323,714.75 and having a
current outstanding principal balance of $12,101,376.45 ("Colonies Note") made
by Snowbirdland, as Agent for DeAnza, and DeAnza and payable to Pacific and (d)
that certain Secured Promissory Note dated August 14, 1994, in the original
principal amount of $13,435,390.10 and having a current outstanding principal
balance of $12,202,806.43 ("Mid-Florida Lakes Note") made by Snowbirdland, as
Agent for DeAnza, and DeAnza and payable to Pacific. The Bay Lake Note,
Buccaneer Note, Colonies Note and Mid-Florida Lakes Note are referred to
collectively herein as the "Original Note."

      B. Concurrently with the execution and delivery of this Note, Lender is
advancing to Snowbirdland and DeAnza, as an additional loan, the sum of
$2,774,596.80 pursuant to that certain Future Advance Promissory Note Secured by
Mortgage (the "Bay Lake Future Advance Note"), the sum of $11,959,917.14
pursuant to that certain Future Advance Promissory Note Secured by Mortgage (the
"Buccaneer Future Advance Note"), the sum of $8,398,623.55 pursuant to that
certain Future Advance Promissory Note Secured by Mortgage (the "Colonies Future
Advance Note") and the sum of $11,797,193.57 pursuant to that certain Future
Advance Promissory Note Secured by Mortgage (the "Mid-Florida Lakes Future
Advance Note"), the aggregate of such sums collectively referred to herein as
the "Additional Florida Loan." The Bay Lake Future Advance Note, Buccaneer
Future Advance Note, Colonies Future Advance Note and Mid-Florida Lakes Future
Advance Note are collectively referred to herein as the "Future Advance Note."

      C. Borrower and Lender desire to amend, restate and consolidate the
Original Note and the Future Advance Note in their entirety to reflect, among
other things, (i) the increase in Borrower's indebtedness to Lender by the
amount of the Additional Florida Loan pursuant to the Future Advance Note, as
well as the additional sums advanced hereunder in the amount of $41,410,000.00,
(ii) a change in the interest rate and the terms of payment and (iii) additional
modifications of, additions to, and deletions of, the terms of the Original Note
and the Future Advance Note.

1.    PROMISE TO PAY. For value received, Borrower promises to pay to the order
      of Lender, at 1320 Willow Pass Road, Suite 205, Concord, California 94520,
      or at such other place as may be designated in writing by Lender, the
      principal sum of ONE HUNDRED TEN MILLION AND NO/100THS DOLLARS
      ($110,000,000.00) ("Loan"), with interest thereon as specified herein. All
      sums owing hereunder are payable in lawful money of the United States of
      America, in immediately available funds, without offset, deduction or
      counterclaim of any kind.

2.    SECURED BY MORTGAGE. This Note is secured by, among other things: (i) that
      certain Amended, Consolidated and Restated Mortgage and Absolute
      Assignment of Rents and Leases and Security Agreement (And Fixture Filing)
      ("Mid-Florida Lakes Mortgage") of even date herewith, executed by
      Snowbirdland and DeAnza encumbering certain

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      real property and improvements located in Leesburg, Florida, as more
      particularly described therein ("Mid-Florida Lakes Property"); (ii) that
      certain Amended, Consolidated and Restated Mortgage and Absolute
      Assignment of Rents And Leases and Security Agreement (And Fixture Filing)
      ("Bay Lake Mortgage") of even date herewith, executed by Snowbirdland and
      DeAnza encumbering certain real property and improvements located in
      Nokomis, Florida, as more particularly described therein ("Bay Lake
      Estates Property"); (iii) that certain Amended, Consolidated and Restated
      Mortgage and Absolute Assignment of Rents and Leases and Security
      Agreement (And Fixture Filing) ("Buccaneer Mortgage") of even date
      herewith, executed by Snowbirdland and DeAnza encumbering certain real
      property and improvements located in North Fort Myers, Florida, as more
      particularly described therein ("Buccaneer Estates Property"); (iv) that
      certain Amended, Consolidated and Restated Mortgage and Absolute
      Assignment of Rents and Leases and Security Agreement (And Fixture Filing)
      ("Colonies Mortgage") of even date herewith, executed by Snowbirdland and
      DeAnza encumbering certain real property and improvements located in
      Margate, Florida and as more particularly described therein ("Colonies of
      Margate Property"); (v) that certain Mortgage and Absolute Assignment of
      Rents and Leases and Security Agreement (And Fixture Filing) ("Willow Lake
      Mortgage") of even date herewith, executed by DeAnza encumbering certain
      real property and improvements located in Elgin, Illinois, as more
      particularly described therein ("Willow Lake Estates Property"); (vi) that
      certain Deed of Trust and Absolute Assignment of Rents and Leases and
      Security Agreement (And Fixture Filing) ("DeAnza Deed of Trust") of even
      date herewith, executed by DeAnza encumbering certain real property and
      improvements located in Santa Cruz, California, as more particularly
      described therein ("DeAnza Santa Cruz Property"); (vii) that certain
      Leasehold Deed of Trust and Absolute Assignment of Rents and Leases and
      Security Agreement (And Fixture Filing) ("Date Palm Leasehold Deed of
      Trust") of even date herewith, executed by Date Palm encumbering certain
      real property and improvements located in Cathedral City, California, as
      more particularly described therein ("Date Palm Country Club Property");
      and (viii) those certain Stock Pledge Agreements executed by Benjamin J.
      Randall and Rosalind Reed in favor of Lender (collectively referred to
      herein as the "Stock Pledge Agreements"). The Mid-Florida Lakes Mortgage,
      Bay Lake Mortgage, Buccaneer Mortgage, Colonies Mortgage, Willow Lake
      Mortgage, DeAnza Deed of Trust and Date Palm Leasehold Deed of Trust are
      referred to herein collectively and individually, as applicable, and as
      modified, extended or renewed, as the "Mortgage" or the "Mortgages." The
      Mid-Florida Lakes Property, the Bay Lake Estates Property, the Buccaneer
      Estates Property, the Colonies of Margate Property, the Willow Lake
      Estates Property, the DeAnza Santa Cruz Property and the Date Palm Country
      Club Property are referred to herein collectively and individually, as
      applicable, as the "Property" or the "Properties."

3.    DEFINITIONS. For the purposes of this Note, the following terms shall have
      the following meanings:

      "Affiliate" shall mean, as to any specified Person, any other Person that,
      directly or indirectly, is in Control of, is Controlled by or is under
      common Control with such specified Person.

      "Business Day" shall mean any day other than a Saturday, Sunday, legal
      holiday or other day on which commercial banks in California are
      authorized or required by law to close. All references in this Note to a
      "day" or a "date" shall be to a calendar day unless specifically
      referenced as a Business Day.

      "Control" shall mean with respect to such Person either (i) ownership
      directly or through other entities of more than 100% of all beneficial
      equity interest in such Person and (ii) the power to direct the
      management, operation and business of such person.

      "Debt Service Coverage Ratio" shall mean, as of the last day of the
      calendar month immediately preceding the applicable calculation date, the
      ratio in which (a) the numerator is the sum of the Net Operating Income
      for each of the applicable Properties for the immediately preceding twelve
      month period and (b) the denominator is the aggregate amount of principal
      and interest that would be due under this Note for such period based upon
      a debt service constant of eight and sixty-six one-hundredths percent
      (8.66%).

      "Default" shall have the meaning set forth in the Mortgages.

      "Disbursement Date" shall mean the date upon which the Loan proceeds are
      funded into escrow in connection with the closing of the Loan.

      "Effective Date" shall mean the date Lender authorizes the Loan proceeds
      to be released to Borrower.

      "Loan Documents" shall mean the documents listed in Exhibit B attached
      hereto and incorporated herein by this reference.

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      "Loan-to-Value Ratio" shall mean, as of the last day of the calendar month
      immediately preceding the applicable calculation date, the ratio in which
      (a) the numerator is the aggregate amount of principal and interest then
      due under this Note and (b) the denominator is the "as-is" value of the
      applicable Properties as set forth in the appraisals for such Properties.

      "Maturity Date" shall mean July 1, 2010.

      "Net Operating Income" shall mean, with respect to a Property, (i) the
      rental payments actually received by the applicable Borrower ("Gross
      Rents"); plus (ii) the expense reimbursements actually received by the
      applicable Borrower ("Expense Reimbursements"); minus the sum of (w) an
      adjustment for vacancy/collection losses equal to the greater of actual,
      market or five percent (5%) of the Gross Rents and Expense Reimbursements;
      and (x) the actual Operating Expenses (as defined below); and (y) an
      amount for reasonable management expenses equal to the greater of (A) four
      percent (4%) of Gross Rents or (B) actual management expenses; and (z) a
      capital improvement reserve equal to $61,300.00 for the Mid-Florida Lakes
      Property, $11,400.00 for the Bay Lake Estates Property, $48,550.00 for the
      Buccaneer Estates Property, $40,950.00 for the Colonies of Margate
      Property, $51,824.00 for the Willow Lake Estates Property, $12,650.00 for
      the DeAnza Santa Cruz Property, $26,900.00 for the Date Palm Country Club
      Property, and such amount as shall be reasonably determined by Lender for
      any Replacement Property (as hereinafter defined).

      "Operating Expenses" shall mean all reasonable operating expenses of such
      Property, including without limitation, those for maintenance, repairs,
      annual taxes, bond assessments, ground lease payments, insurance,
      utilities, and other annual expenses (but not capital expenses) that are
      standard and customary for properties of this type. Operating Expenses for
      this purpose shall not include any interest or principal payments on the
      Loan or any allowance for depreciation.

      "Person" shall mean any individual, corporation, partnership, joint
      venture, estate, trust, unincorporated association, any federal, state,
      county or municipal government or any bureau, department or agency thereof
      and any fiduciary acting in such capacity on behalf of any of the
      foregoing.

      "Property Worth" shall mean, with respect to each Borrower, the fair
      market value of the Property or Properties owned by such Borrower as of
      the Disbursement Date.

      "Rating Agency" shall mean each of Standard & Poor's Ratings Group,
      Moody's Investors Service, Inc., Duff & Phelps Rating Co., and Fitch
      Investors Service, Inc., and their successors or assigns, or any other
      nationally recognized statistical rating agency which rates securities in
      connection with a securitization.

      "Remaining Properties" shall mean all of the Properties other than those
      that have been released or requested to be released from the lien of the
      applicable Mortgage pursuant to a Defeasance (hereinafter defined in
      Section 14) or in exchange for a Replacement Property.

4.    INTEREST; PAYMENTS.

      4.1   DEFINITIONS. The following terms shall have the meanings indicated:

            "Actual/360 Basis" shall mean on the basis of a 360-day year and
            charged on the basis of actual days elapsed for any whole or partial
            month in which interest is being calculated.

            "30/360 Basis" shall mean on the basis of a 360-day year consisting
            of 12 months of 30 days each.

            "Interest Rate" shall mean a fixed interest rate equal to 7.82%.

      4.2   INTEREST ACCRUAL. Interest on the outstanding principal balance of
            this Note shall accrue from the Disbursement Date at an annual rate
            equal to the Interest Rate calculated on an Actual/360 Basis.

      4.3   PAYMENTS. Monthly payments hereunder shall commence on the first day
            of the calendar month following the Disbursement Date and continue
            on the first day of each calendar month thereafter through the
            Maturity Date. If the Disbursement Date is a date other than the
            first day of a calendar month, the first monthly payment shall be
            interest only. Subsequent monthly payments shall be calculated on
            the basis of an equal-payment thirty (30) year

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            amortization of principal and interest. Notwithstanding that
            interest on this Note accrues on an Actual/360 Basis, the total
            amount of each such amortized monthly payment of principal and
            interest shall be determined using a 30/360 Basis. On the Maturity
            Date, all unpaid principal and accrued but unpaid interest shall be
            due and owing in full. All interest shall be paid in arrears.

      4.4   ACKNOWLEDGMENTS. Borrower acknowledges that interest calculated on
            an Actual/360 Basis exceeds interest calculated on a 30/360 Basis
            and, therefore: (a) a greater portion of each monthly installment of
            principal and interest will be applied to interest using the
            Actual/360 Basis than would be the case if interest accrued on a
            30/360 Basis; and (b) the unpaid principal balance of this Note on
            the Maturity Date will be greater using the Actual/360 Basis than
            would be the case if interest accrued on a 30/360 Basis.

      4.5   APPLICATION OF PAYMENTS. In the absence of a specific determination
            by Lender to the contrary, all payments paid by Borrower to Lender
            in connection with the obligations of Borrower under this Note and
            under the other Loan Documents shall be applied in the following
            order of priority: (a) to amounts, other than principal and
            interest, due to Lender pursuant to this Note or the other Loan
            Documents; (b) to accrued but unpaid interest on this Note; and (c)
            to the unpaid principal balance of this Note. Upon the occurrence of
            a Default: (i) Borrower irrevocably waives the right to direct the
            application of any and all payments at any time thereafter received
            by Lender from or on behalf of Borrower, and (ii) Borrower
            irrevocably agrees that Lender shall have the continuing exclusive
            right to apply any and all such payments against the then due and
            owing obligations of Borrower in such order of priority as Lender
            may deem advisable.

5.    LATE CHARGE; DEFAULT RATE.

      5.1   LATE CHARGE. If any payment required hereunder is not paid on or
            before the fifth calendar day of the month in which it is due,
            Borrower shall pay a late or collection charge, as liquidated
            damages, equal to 4% of the amount of such unpaid payment. Borrower
            acknowledges that Lender will incur additional expenses as a result
            of any late payments hereunder, which expenses would be
            impracticable to quantify, and that Borrower's payments under this
            paragraph are a reasonable estimate of such expenses. The foregoing
            to the contrary notwithstanding, no late or collection charge shall
            be payable by Borrower as a result of any delay in the payment of
            any sum due and payable on the Maturity Date.

      5.2   DEFAULT RATE. Commencing upon a Default and continuing until such
            Default shall have been cured by Borrower, all sums owing on this
            Note shall bear interest until paid in full at a rate per annum
            equal to 5% plus the Interest Rate ("Default Rate").

6.    MAXIMUM RATE PERMITTED BY LAW. Neither this Note nor any of the other Loan
      Documents shall require the payment or permit the collection of any
      interest or any late payment charge in excess of the maximum rate
      permitted by law. If any such excess interest or late payment charge is
      provided for under this Note or any of the other Loan Documents or if this
      Note or any of the other Loan Documents shall be adjudicated to provide
      for such excess, neither Borrower nor Borrower's successors or assigns
      shall be obligated to pay such excess, and the right to demand the payment
      of any such excess shall be and hereby is waived, and this provision shall
      control any other provision of this Note or any of the other Loan
      Documents. If Lender shall collect amounts which are deemed to constitute
      interest and which would increase the effective interest rate to a rate in
      excess of the maximum rate permitted by law, all such amounts deemed to
      constitute interest in excess of the maximum legal rate shall, upon such
      determination, at the option of Lender, be returned to Borrower or
      credited against the outstanding principal balance of this Note.

7.    ACCELERATION. If (a) Borrower shall fail to pay when due, subject to any
      applicable grace or cure period, any sums payable under this Note; (b) any
      other Default shall occur; or (c) any other event or condition shall occur
      which, under the terms of any of the Mortgages or any other Loan Document,
      gives rise to a right of acceleration of sums owing under this Note, then
      Lender, at its sole option, shall have the right to declare all sums owing
      under this Note immediately due and payable; provided, however, that if
      any of the Mortgages or any other Loan Document provides for the automatic
      acceleration of payment of sums owing under this Note, all sums owing
      under this Note shall be automatically due and payable in accordance with
      the terms of such of the Mortgages or such other Loan Document.

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8.    BORROWER'S LIABILITY.

      8.1   LIMITATION. Except as otherwise provided in this Section 8, Lender's
            recovery against Borrower under this Note and the other Loan
            Documents shall be limited solely to the Properties and the
            "Collateral" (as defined in the Mortgages).

      8.2   EXCEPTIONS. Nothing contained in Section 8.1 or elsewhere in this
            Note or the other Loan Documents, however, shall limit in any way
            the personal liability of Borrower owed to Lender for any losses or
            damages incurred by Lender (including, without limitation, any
            impairment of Lender's security for the Loan) with respect to any of
            the following matters: (a) fraud or willful misrepresentation; (b)
            material physical waste of the Properties (or any portions thereof)
            or the Collateral; (c) failure to pay property or other taxes,
            assessments or charges (other than amounts paid to Lender for taxes,
            assessments or charges pursuant to Impounds as defined in Exhibit A
            and where Lender elects not to apply such funds toward payment of
            the taxes, assessments or charges owed) which may create liens
            senior to the lien of any of the Mortgages on all or any portion of
            the Properties; (d) failure to deliver any insurance or condemnation
            proceeds or awards or any security deposits received by Borrower to
            Lender as required under the terms of the Loan Documents or any
            other instrument now or hereafter securing this Note or to otherwise
            apply such sums as required under the terms of the Loan Documents or
            any other instrument now or hereafter securing this Note; (e)
            failure to apply any rents, royalties, accounts, revenues, income,
            issues, profits and other benefits from the Properties (or any
            portion thereof) which are collected or received by Borrower during
            the period of any Default or after acceleration of the indebtedness
            and other sums owing under the Loan Documents to the payment of
            either (i) such indebtedness or other sums or (ii) the normal and
            necessary operating expenses of the Properties; (f) any breach by
            Borrower of any covenant in this Note or in any of the Mortgages
            regarding Hazardous Materials (as defined in the Mortgages) or any
            representation or warranty of Borrower regarding Hazardous Materials
            proving to have been untrue when made; (g) failure to pay any
            judgments, costs, expenses, fees and any other amounts whatsoever
            owing pursuant to, as a result of or in connection with the
            litigation matters pending, and that have been disclosed to Lender
            prior to the Effective Date, at the Buccaneer Estates Property, the
            Willow Lake Estates Property or the DeAnza Santa Cruz Property,
            respectively; or (h) failure of any of the Date Palm Ground Lease
            Documents (as hereinafter defined) required to be executed by the
            ground lessors in connection with the release of the Date Palm
            Escrow to be legally binding on all of the ground lessors under the
            ground lease encumbering the Date Palm Country Club Property.

      8.3   NO RELEASE OR IMPAIRMENT. Nothing contained in Section 8.1 shall be
            deemed to release, affect or impair the indebtedness evidenced by
            this Note or the obligations of Borrower under, or the liens and
            security interests created by the Loan Documents, or Lender's rights
            to enforce its remedies under this Note and the other Loan
            Documents, including, without limitation, the right to pursue any
            remedy for injunctive or other equitable relief, or any suit or
            action in connection with the preservation, enforcement or
            foreclosure of the liens, mortgages, deeds of trust, assignments and
            security interests which are now or at any time hereafter security
            for the payment and performance of all obligations under this Note
            or the other Loan Documents.

      8.4   PREVAIL AND CONTROL. The provisions of this Section 8 shall prevail
            and control over any contrary provisions elsewhere in this Note or
            the other Loan Documents.

9.    NON-MORTGAGOR BORROWER. If any Borrower is not also a "Mortgagor" under
      the Mortgages, such Borrower hereby makes all representations and
      warranties in favor of Lender contained in Article 5 of the Mortgages, all
      covenants contained in Section 6.15 of the Mortgages, and all indemnities
      of Lender contained in Section 6.19 of the Mortgages, jointly and
      severally with the "Mortgagor" under each of the Mortgages.

10.   MISCELLANEOUS.

      10.1  JOINT AND SEVERAL LIABILITY. If this Note is executed by more than
            one person or entity as Borrower, the obligations of each such
            person or entity shall be joint and several. No person or entity
            shall be a mere accommodation maker, but each shall be primarily and
            directly liable hereunder.

      10.2  WAIVER OF PRESENTMENT. Except as otherwise provided herein or in any
            other Loan Document, Borrower hereby waives presentment, demand,
            notice of dishonor, notice of default or delinquency, notice of
            acceleration, notice of nonpayment, notice of costs, expenses or
            losses and interest thereon, and notice of interest on interest and
            late charges.

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      10.3  DELAY IN ENFORCEMENT. No previous waiver or failure or delay by
            Lender in acting with respect to the terms of this Note or the
            Mortgages shall constitute a waiver of any breach, default or
            failure of condition under this Note, the Mortgages or the
            obligations secured thereby. A waiver of any term of this Note, the
            Mortgages or of any of the obligations secured thereby must be made
            in writing signed by Lender, shall be limited to the express terms
            of such waiver, and shall not constitute a waiver of any subsequent
            obligation of Borrower. The acceptance at any time by Lender of any
            past-due amount shall not be deemed to be a waiver of the right to
            require prompt payment when due of any other amounts then or
            thereafter due and payable.

      10.4  TIME OF THE ESSENCE. Time is of the essence with respect to every
            provision hereof.

      10.5  GOVERNING LAW. This Note was accepted by Lender in the state of
            California and the proceeds of this Note were disbursed from the
            state of California, which state the parties agree has a substantial
            relationship to the parties and to the underlying transaction
            embodied hereby. Accordingly, in all respects, including, without
            limiting the generality of the foregoing, matters of construction,
            validity, enforceability and performance, this Note, the Mortgages
            and the other Loan Documents and the obligations arising hereunder
            and thereunder shall be governed by, and construed in accordance
            with, the laws of the state of California applicable to contracts
            made and performed in such state and any applicable law of the
            United States of America, except that at all times the provisions
            for the foreclosure of the liens granted under the Mortgages
            securing this Note and the creation, perfection and enforcement of
            the security interests created pursuant thereto and pursuant to the
            other Loan Documents shall be governed by and construed according to
            the law of the states where the Properties are located. Except as
            provided in the immediately preceding sentence, Borrower hereby
            unconditionally and irrevocably waives, to the fullest extent
            permitted by law, any claim to assert that the law of any
            jurisdiction other than California governs the Mortgages, this Note
            and the other Loan Documents.

      10.6  CONSENT TO JURISDICTION. Borrower irrevocably submits to the
            jurisdiction of: (a) any state or federal court sitting in the state
            of California over any suit, action, or proceeding, brought by
            Borrower against Lender, arising out of or relating to this Note or
            the Loan evidenced hereby; (b) any state or federal court sitting in
            any of the states where the Properties are located or the state in
            which Borrower's principal place of business is located over any
            suit, action or proceeding, brought by Lender against Borrower,
            arising out of or relating to this Note or the Loan evidenced
            hereby; and (c) any state court sitting in any of the counties of
            the states where the Properties are located over any suit, action,
            or proceeding, brought by Lender to exercise its rights of
            foreclosure under the applicable Mortgage or any action brought by
            the Lender to enforce its rights with respect to the Collateral.
            Borrower irrevocably waives, to the fullest extent permitted by law,
            any objection that Borrower may now or hereafter have to the laying
            of venue of any such suit, action, or proceeding brought in any such
            court and any claim that any such suit, action, or proceeding
            brought in any such court has been brought in an inconvenient forum.

      10.7  COUNTERPARTS. This Note may be executed in any number of
            counterparts, each of which when executed and delivered shall be
            deemed an original and all of which taken together shall be deemed
            to be one and the same Note.

      10.8  HEIRS, SUCCESSORS AND ASSIGNS. All of the terms, covenants,
            conditions and indemnities contained in this Note and the other Loan
            Documents shall be binding upon the heirs, successors and assigns of
            Borrower and shall inure to the benefit of the successors and
            assigns of Lender. The foregoing sentence shall not be construed to
            permit Borrower to assign the Loan except as otherwise permitted in
            this Note or the other Loan Documents.

      10.9  SEVERABILITY. If any term of this Note, or the application thereof
            to any person or circumstances, shall, to any extent, be invalid or
            unenforceable, the remainder of this Note, or the application of
            such term to persons or circumstances other than those as to which
            it is invalid or unenforceable, shall not be affected thereby, and
            each term of this Note shall be valid and enforceable to the fullest
            extent permitted by law.

      10.10 CONSENTS, APPROVALS AND EXPENSES. Wherever Lender's consent,
            approval, acceptance or satisfaction is required under any provision
            of this Note or any of the other Loan Documents, such consent,
            approval, acceptance or satisfaction shall not be unreasonably
            withheld, conditioned or delayed by Lender unless such provision
            expressly so provides. Wherever costs or expenses are required to be
            paid under any provision of this Note or any of the other Loan
            Documents, such costs or expenses shall be reasonable.

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11.   NOTICES. All requests, demands, notices and other communications that are
      required or permitted to be given to a party under this Note shall be in
      writing and shall be sent to such party, either by personal delivery, by
      overnight delivery service, by certified first class mail, return receipt
      requested, or by facsimile transmission to the address or facsimile number
      below. All such notices and communications shall be effective upon receipt
      of such delivery or facsimile transmission, together with a printed
      receipt of the successful delivery of such facsimile transmission. The
      addresses and facsimile numbers of the parties shall be:

      Borrower:                                Lender:
      ---------                                -------
      c/o Manufactured Home Communities, Inc.  Wells Fargo Bank, N.A.
      Two North Riverside Plaza                1320 Willow Pass Road, Suite 205
      Suite 800                                Concord, CA  94520
      Chicago, Illinois 60606                  Loan No. 31-0900140R
      Attention:  General Counsel              FAX No.: (925) 691-5947
      FAX No.:  (312) 279-1715

      With a copy to:

      Katz Randall Weinberg & Richmond
      333 West Wacker Drive
      Suite 1800
      Chicago, IL  60606-1288
      Attention:  Benjamin J. Randall
      FAX No.:  (312) 807-3903

12.   ADDITIONAL TERMS AND CONDITIONS. The additional terms and conditions set
      forth in Exhibit A and Exhibit B attached hereto are incorporated herein
      by this reference.

13.   PREPAYMENT. Borrower acknowledges that any prepayment of this Note will
      cause Lender to lose its interest rate yield on this Note and will
      possibly require that Lender reinvest any such prepayment amount in loans
      of a lesser interest rate yield (including, without limitation, in debt
      obligations other than first mortgage loans on commercial properties). As
      a consequence, Borrower agrees as follows, as an integral part of the
      consideration for Lender's making the Loan:

      13.1  RESTRICTIONS. Except for the Date Palm Repayment Option (as
            hereinafter defined), any voluntary prepayment of this Note: (a) is
            prohibited except during the last 3 months of the term, (b) is
            permitted in full only, and not in part, and (c) may only be made on
            the first day of a month.

      13.2  PREPAYMENT CHARGE. Except as provided below, if this Note is prepaid
            prior to the last three (3) months of the term, whether such
            prepayment is involuntary or upon acceleration of the principal
            amount of this Note by Lender following a Default, Borrower shall
            pay to Lender on the prepayment date (in addition to all other sums
            then due and owing to Lender under the Loan Documents) a prepayment
            charge equal to the greater of the following two amounts: (a) an
            amount equal to 1% of the then outstanding principal balance of the
            Loan; or (b) an amount equal to (i) the amount, if any, by which the
            sum of the present values as of the prepayment date of all unpaid
            principal and interest payments required under this Note, calculated
            by discounting such payments from their respective scheduled payment
            dates back to the prepayment date at a discount rate equal to the
            Periodic Treasury Yield (defined below) exceeds the outstanding
            principal balance of the Loan as of the prepayment date, multiplied
            by (ii) a fraction whose numerator is the amount of the prepayment
            and whose denominator is the outstanding principal balance of the
            Loan as of the prepayment date. Notwithstanding the foregoing, no
            prepayment charge shall apply in respect to any insurance or
            condemnation proceeds received by Lender and applied by Lender to
            the outstanding principal balance of the Loan. For purposes of the
            foregoing, "Periodic Treasury Yield" means (c) the annual yield to
            maturity of the actively traded non-callable United States Treasury
            fixed interest rate security (other than any such security which can
            be surrendered at the option of the holder at face value in payment
            of federal estate tax or which was issued at a substantial discount)
            that has a maturity closest to (whether before, on or after) the
            Maturity Date (or if two or more such securities have

                                       7
<PAGE>   8
            maturity dates equally close to the Maturity Date, the average
            annual yield to maturity of all such securities), as reported in The
            Wall Street Journal or other authoritative publication or news
            retrieval service on the fifth Business Day preceding the prepayment
            date, divided by (d) 12, if scheduled payment dates are monthly, or
            4, if scheduled payment dates are quarterly. Notwithstanding the
            foregoing, no prepayment charge shall be required in connection with
            the Date Palm Repayment Option.

      13.3  WAIVER. Borrower waives any right to prepay this Note except under
            the terms and conditions set forth in this Section and agrees that
            if this Note is prepaid, Borrower will pay the prepayment charge set
            forth above. Borrower hereby acknowledges that: (a) the inclusion of
            this waiver of prepayment rights and agreement to pay the prepayment
            charge for the right to prepay this Note was separately negotiated
            with Lender; (b) the economic value of the various elements of this
            waiver and agreement was discussed; (c) the consideration given by
            Borrower for the Loan was adjusted to reflect the specific waiver
            and agreement negotiated between Borrower and Lender and contained
            herein; and (d) this waiver is intended to comply with California
            Civil Code Section 2954.10.

Borrower's Initials: ________ ________ ________

      13.4  INSURANCE PROCEEDS; CONDEMNATION AWARDS. Notwithstanding anything
            herein to the contrary, no prepayment charge shall be due and owing
            with respect to any involuntary prepayment resulting from Lender's
            application of any insurance proceeds or condemnation awards to the
            Loan.

14.   DEFEASANCE. At any time after the Lockout Expiration Date (defined below),
      Borrower may elect to cause Lender to release one or more of the
      Properties from the lien of any of the Mortgages and the other Loan
      Documents and to accept other collateral in substitution therefor, in
      accordance with the provisions of this Section ("Defeasance"), at
      Borrower's sole cost and expense. "Lockout Expiration Date" means the
      earlier of (a) the second anniversary of the "startup day" (as defined in
      Internal Revenue Code Section 860(G)(a)(9)) of any "real estate mortgage
      investment conduit" (as defined in Internal Revenue Code Section 860D)
      that holds this Note and (b) the third anniversary of the date of this
      Note. For purposes of this Section 14 only, (a) the values of the
      Mid-Florida Lakes Property, the Bay Lake Estates Property, the Buccaneer
      Estates Property, the Colonies of Margate Property, the Willow Lake
      Estates Property, the DeAnza Santa Cruz Property and the Date Palm Country
      Club Property, respectively, expressed as a percentage of the total
      principal amount of the Loan ("Allocated Loan Percentage"), shall be
      deemed to be 21.8182%, 4.3544%, 17.5455%, 18.6364%, 17.7273%, 5.60%, and
      14.3182%; and (b) the portion of the principal amount of the Loan
      allocable to each of the Properties ("Allocated Loan Amount") shall be
      deemed initially to be the Allocated Loan Percentage for such Property
      multiplied by the initial total principal amount of the Loan and,
      thereafter, the same such amount as the same shall be reduced by ratable
      application of payments of principal made under this Note from time to
      time.

      14.1  CONDITIONS. Borrower shall only have the right to cause a Defeasance
            if no Default has occurred and is continuing and all of the
            following conditions have been satisfied:

            a.    Notice. Borrower shall give at least 60 days but not more than
                  90 days' written notice to Lender specifying the date of
                  Borrower's intended Defeasance ("Release Date"), which date
                  shall be a scheduled payment date and such notice shall
                  indicate the principal amount of the Note to be defeased;

            b.    Payments. Borrower shall pay in full, on or before the Release
                  Date, all accrued and unpaid interest and all other sums due
                  under this Note and the other Loan Documents on or before the
                  Release Date, including without limitation, (i) all costs and
                  expenses paid or incurred by Lender or its agents in
                  connection with the Defeasance, the purchase of the Defeasance
                  Collateral (defined below), the release of the applicable
                  Properties, the review of the proposed Defeasance Collateral
                  and the preparation of the Defeasance Security Agreement
                  (defined below) and related documentation, and (ii) any
                  revenue, documentary stamp, intangible or other taxes, charges
                  or fees due in connection with the transfer or assumption of
                  this Note or the Defeasance;

            c.    Deliveries. Borrower shall deliver the following items to
                  Lender on or before the Release Date:

                  (i)   immediately available funds ("Defeasance Deposit") in an
                        amount sufficient to enable Lender to purchase, through
                        means and sources customarily employed and available to
                        Lender, for the account of Borrower, direct,
                        non-callable obligations of the United States of America
                        that

                                       8
<PAGE>   9
                        provide for payments prior, but as close as possible, to
                        all successive scheduled payment dates occurring after
                        the Release Date, with each such payment being equal to
                        or greater than one hundred twenty five percent (125%)
                        of the product of the Allocated Loan Percentage for the
                        Properties that are the subject of the applicable
                        Defeasance multiplied by the installments of principal
                        and interest required to be paid under this Note
                        (including, without limitation, all amounts due on the
                        Maturity Date) for the balance of the term hereof
                        ("Defeasance Collateral"), each of which shall be duly
                        endorsed by the holder as directed by Lender or
                        accompanied by a written instrument of transfer in form
                        and substance satisfactory to Lender in its sole
                        discretion (including, without limitation, such
                        instruments as may be required by the depository
                        institution holding such securities or the issuer of
                        such securities, as the case may be, to effectuate
                        book-entry transfers and pledges through the book-entry
                        facilities of such institution) in order to perfect upon
                        the delivery of the Defeasance Security Agreement (as
                        defined below) the first priority security interest in
                        the Defeasance Collateral in favor of Lender.

                  (ii)  a pledge and security agreement, in form and substance
                        satisfactory to Lender in its reasonable discretion,
                        creating a first priority security interest in favor of
                        Lender in the Defeasance Collateral ("Defeasance
                        Security Agreement"), which shall provide, among other
                        things, that any payments generated by the applicable
                        Defeasance Collateral shall be paid directly to Lender
                        and applied by Lender to amounts then due and payable
                        under this Note allocable to the Allocated Loan Amount
                        for the Properties that are the subject of the
                        applicable Defeasance and that any excess received by
                        Lender from the applicable Defeasance Collateral over
                        the amounts payable by Borrower under this Note
                        allocable to the Allocated Loan Amount for the
                        Properties that are the subject of the applicable
                        Defeasance shall be first, paid to Lender and applied by
                        Lender to any other amounts then due and payable under
                        this Note, and second, refunded to Borrower promptly
                        after each scheduled payment date;

                  (iii) a certificate of Borrower certifying that all of the
                        requirements of this Section 14.1 have been satisfied;

                  (iv)  an opinion of counsel for Borrower in form and substance
                        and delivered by counsel satisfactory to Lender in its
                        sole discretion, subject, however, to standard
                        enforceability opinion qualifications and limitations,
                        stating, among other things, that (aa) Lender has a
                        perfected first priority security interest in the
                        Defeasance Collateral, (bb) the Defeasance Security
                        Agreement is enforceable against Borrower in accordance
                        with its terms and (cc) any REMIC Trust formed pursuant
                        to a securitization will not fail to maintain its status
                        as a "real estate mortgage investment conduit" within
                        the meaning of Internal Revenue Code Section 860D, as
                        amended from time to time, or any successor statute, as
                        a result of the Defeasance;

                  (v)   a certificate from a firm of independent certified
                        public accountants acceptable to Lender certifying that
                        the Defeasance Collateral satisfies the requirements of
                        Section 14.1c(i);

                  (vi)  written evidence from the applicable Rating Agencies
                        that the Defeasance will not result in a downgrading,
                        withdrawal or qualification of the respective ratings in
                        effect immediately prior to the Defeasance for any
                        securities issued in connection with the securitization
                        which are then outstanding;

                  (vii) if the Property to be released pursuant to this Section
                        is either the Mid-Florida Lakes Property, the Bay Lake
                        Estates Property, the Buccaneer Estates Property or the
                        Colonies of Margate Property, then a conveyance of title
                        to the Property to be released to a Person other than a
                        Borrower;

                  (viii) such other certificates, documents or instruments as
                        Lender may reasonably require, including, without
                        limitation, such amendments to this Note and the other
                        Loan Documents as Lender reasonably deems appropriate to
                        reflect the Defeasance.

                                       9
<PAGE>   10
      14.2  RELEASE OF LIEN. Upon satisfaction of all conditions specified above
            with respect to any Defeasance, the Property subject to such
            Defeasance shall be released from the lien of the applicable
            Mortgage and the other Loan Documents to which it is subject, and
            the applicable Defeasance Collateral, any Defeasance Collateral
            previously delivered to Lender under this Note, the Remaining
            Properties and the proceeds thereof shall constitute the only
            collateral which shall secure the obligations of Borrower under this
            Note and the other Loan Documents. Simultaneously with the release
            of a Property pursuant to this Section, Lender shall release that
            portion of all cash or other accounts maintained pursuant to the
            Loan Documents relating to such Property. Lender shall, at
            Borrower's expense, execute and deliver any agreements reasonably
            requested by Borrower to release the lien of the applicable Mortgage
            from the applicable Property.

      14.3  DEFEASANCE DEPOSIT. Borrower hereby authorizes and directs Lender,
            using the means and sources customarily employed and available to
            Lender, to use the Defeasance Deposit to purchase the Defeasance
            Collateral as agent and for the account of Borrower. Payments from
            the Defeasance Collateral shall be made directly to Lender for
            application to the Loan as provided hereinabove. Any part of the
            Defeasance Deposit exceeding the amount necessary to purchase the
            Defeasance Collateral and to pay the other costs which Borrower is
            obligated to pay under this Section 14 shall be refunded to
            Borrower. Borrower agrees to pay all sums referred to in Section
            14.1b above on or before the Release Date.

      14.4  ASSIGNMENT AND ASSUMPTION. Upon the release of any of the Properties
            in accordance with this Section 14, Borrower shall, at the request
            of Lender, assign all of its right, title and interest in and to the
            pledged Defeasance Collateral, any Defeasance Collateral previously
            delivered to Lender under this Note and all its obligations and
            rights under this Note, the Defeasance Security Agreement, any
            Defeasance Security Agreement previously delivered to Lender under
            this Note and the other Loan Documents, to a successor entity
            designated by Borrower and approved by Lender in its sole
            discretion. Such successor entity shall execute an assumption
            agreement in form and substance satisfactory to Lender in its sole
            discretion pursuant to which it shall assume Borrower's obligations
            under this Note, the Defeasance Security Agreement, any Defeasance
            Security Agreement previously delivered to Lender under this Note
            and the other Loan Documents. As conditions to such assignment and
            assumption, Borrower shall: (a) deliver to Lender a new limited
            guaranty in form and substance satisfactory to Lender in its sole
            discretion executed by the principals of such successor entity; (b)
            deliver to Lender an opinion of counsel in form and substance and
            delivered by counsel satisfactory to Lender in its sole discretion
            subject, however, to standard enforceability opinion qualifications
            and limitations, stating, among other things, that such assumption
            agreement is enforceable against Borrower and such successor entity
            in accordance with its terms and that this Note, the Defeasance
            Security Agreement, any Defeasance Security Agreement previously
            delivered to Lender under this Note and the other Loan Documents, as
            so assumed, are enforceable against such successor entity in
            accordance with their respective terms; and (c) pay all costs and
            expenses incurred by Lender or its agents in connection with such
            assignment and assumption (including, without limitation, the review
            of the proposed transferee and the preparation of the assumption
            agreement and related documentation). Upon such assumption, Borrower
            shall be relieved of its obligations under this Note, the Defeasance
            Security Agreement, any Defeasance Security Agreement previously
            delivered to Lender under this Note and the other Loan Documents
            other than those obligations which are specifically intended to
            survive the payment of the Loan or other termination, satisfaction
            or assignment of this Note, the Defeasance Security Agreement, any
            Defeasance Security Agreement previously delivered to Lender under
            this Note or the other Loan Documents or Lender's exercise of its
            rights and remedies under any of such documents and instruments.

15.   WAIVER OF JURY TRIAL. LENDER AND BORROWER HEREBY KNOWINGLY, VOLUNTARILY
      AND INTENTIONALLY WAIVE ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN
      RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN
      CONNECTION WITH, THIS NOTE OR ANY OTHER LOAN DOCUMENT, OR ANY COURSE OF
      CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN), OR
      ACTIONS OF LENDER OR BORROWER. THIS PROVISION IS A MATERIAL INDUCEMENT FOR
      LENDER TO MAKE THE LOAN TO BORROWER. BY ACCEPTANCE OF THIS EXECUTED NOTE,
      LENDER AGREES TO THE FOREGOING WAIVER.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       10
<PAGE>   11
"BORROWER"

SNOWBIRDLAND VISTAS, INC.,
an Illinois corporation

By:   /s/ Jennifer Usher
   ------------------------------
Name: Jennifer Usher
     ----------------------------
Its:  AVP/Secretary
    -----------------------------

MHC DATE PALM, L.L.C.,
a Delaware limited liability company

By: MHC-QRS DATE PALM, INC.,
    a  Delaware corporation, its Managing Member

    By: /s/ John M Zoeller
       --------------------------
    Name: John M Zoeller
         ------------------------
    Its: VP
        -------------------------

MHC-DEANZA FINANCING LIMITED PARTNERSHIP,
an Illinois limited partnership

By: MHC-QRS DEANZA, INC.,
    an Illinois corporation, its General Partner

    By: /s/ John M Zoeller
       --------------------------
    Name: John M Zoeller
         ------------------------
    Its: VP
        -------------------------

                                       11
<PAGE>   12
                          EXHIBIT A TO PROMISSORY NOTE
                         ADDITIONAL TERMS AND CONDITIONS

This Exhibit A is attached to and forms a part of that Amended, Restated and
Consolidated Promissory Note ("Note") executed by MHC-DEANZA FINANCING LIMITED
PARTNERSHIP, an Illinois limited partnership ("DeAnza"), SNOWBIRDLAND VISTAS,
INC., an Illinois corporation ("Snowbirdland") and MHC DATE PALM, L.L.C., a
Delaware limited liability company ("Date Palm") (DeAnza, Date Palm and
Snowbirdland are individually and collectively, as the context requires and with
such determination to be made in the sole discretion of Lender, referred to
herein as the "Borrower") in favor of WELLS FARGO BANK, NATIONAL ASSOCIATION
("Lender").

1.    DISBURSEMENT OF LOAN PROCEEDS; LIMITATION OF LIABILITY. Borrower hereby
      authorizes Lender to disburse the proceeds of the Loan, after deducting
      any and all fees owed by Borrower to Lender in connection with the Loan,
      to Commonwealth Land Title Insurance Company (the "Title Company"). With
      respect to such disbursement, Borrower understands and agrees that Lender
      does not accept responsibility for errors, acts or omissions of others,
      including, without limitation, the escrow company, other banks,
      communications carriers or clearinghouses through which the transfer of
      Loan proceeds may be made or through which Lender receives or transmits
      information, and no such entity shall be deemed Lender's agent. As a
      consequence, Lender shall not be liable to Borrower for any actual
      (whether direct or indirect), consequential or punitive damages which may
      arise with respect to the disbursement of Loan proceeds, whether or not
      (a) any claim for such damages is based on tort or contract, or (b) either
      Lender or Borrower knew or should have known of the likelihood of such
      damages in any situation.

2.    FINANCIAL STATEMENTS.

      2.1   STATEMENTS REQUIRED. During the term of the Loan and while any
            liabilities of Borrower to Lender under any of the Loan Documents
            remain outstanding and unless Lender otherwise consents in writing,
            Borrower shall provide to Lender the following:

            a.    OPERATING STATEMENT. Not later than 10 days after and as of
                  each calendar month during the first 6 months of the term of
                  the Loan, and thereafter not later than 30 days after and as
                  of the end of each calendar quarter, an operating statement,
                  signed and dated by Borrower and in a form acceptable to
                  Lender, showing all revenues and expenses during such month or
                  quarter and year-to-date, relating to each of the Properties,
                  including, without limitation, all information requested under
                  any of the Loan Documents;

            b.    RENT ROLL. Not later than 10 days after and as of each
                  calendar month during the first 6 months of the term of the
                  Loan, and thereafter not later than 30 days after and as of
                  the end of each calendar quarter, a rent roll signed and dated
                  by Borrower and in a form acceptable to Lender, showing the
                  following lease information with regard to each tenant: the
                  name of the tenant, monthly or other periodic rental amount,
                  date of commencement of the lease, and payment status;

            c.    BALANCE SHEET. If requested by Lender, not later than 90 days
                  after and as of the end of each fiscal year, a balance sheet,
                  signed and dated by Borrower and in a form acceptable to
                  Lender (or audited financial statements if Borrower obtains
                  them), showing all assets and liabilities of Borrower; and

            d.    OTHER INFORMATION. From time to time, upon Lender's delivery
                  to Borrower of at least 10 days' prior written notice, such
                  other information with regard to Borrower, principals of
                  Borrower, guarantors or the Properties as Lender may
                  reasonably request in writing.

      2.2   FORM; WARRANTY. Borrower agrees that all financial statements to be
            delivered to Lender pursuant to Section 2.1 shall: (a) be complete
            and correct in all material respects; (b) present fairly the
            financial condition of the party; (c) disclose all liabilities that
            are required to be reflected or reserved against; and (d) be
            prepared in accordance with the same accounting standard used by
            Borrower to prepare the financial statements delivered to and
            approved by Lender in connection with the making of the Loan or
            other accounting standards

                                   EXHIBIT A

                                       1
<PAGE>   13
            acceptable to Lender. Borrower shall be deemed to warrant and
            represent that, as of the date of delivery of any such financial
            statement, there has been no material adverse change in financial
            condition, nor have any assets or properties been sold, transferred,
            assigned, mortgaged, pledged or encumbered since the date of such
            financial statement except as disclosed by Borrower in a writing
            delivered to Lender. Borrower agrees that all rent rolls and other
            information to be delivered to Lender pursuant to Section 2.1 shall
            not contain any misrepresentation or omission of a material fact.

      2.3   LATE CHARGE. If any financial statement, leasing schedule or other
            item required to be delivered to Lender pursuant to Section 2.1 is
            not timely delivered, Borrower shall promptly pay to Lender, as a
            late charge, the sum of $500 per item. In addition, Borrower shall
            promptly pay to Lender an additional late charge of $500 per item
            for each full month during which such item remains undelivered
            following written notice from Lender. Borrower acknowledges that
            Lender will incur additional expenses as a result of any such late
            deliveries, which expenses would be impracticable to quantify, and
            that Borrower's payments under this Section 2.3 are a reasonable
            estimate of such expenses. Notwithstanding anything to the contrary
            contained herein, once during each year of the term of the Loan
            Lender will give notice to Borrower of its failure to provide any
            item required to be delivered to Lender pursuant to Section 2.1 and
            if any such items are not delivered within three (3) Business Days
            following such notice, then at such time the late charge specified
            herein shall take effect.

3.    IMPOUNDS.

      3.1   AMOUNTS. Borrower shall deposit with Lender the amounts ("Impounds")
            stated below on the dates stated below, for the purpose of paying
            the costs stated below:

            a.    TAXES. (i) $1,549,779.00 on the Disbursement Date, and (ii) on
                  the first payment date on which both principal and interest
                  under the Loan are payable and on each payment date
                  thereafter, an amount estimated from time to time by Lender in
                  its reasonable discretion to be sufficient to pay for taxes
                  and other liabilities payable by Borrower under Section 6.9 of
                  each of the Mortgages. The initial estimated monthly amount to
                  be deposited by Borrower on each payment date is $210,110.00.

            b.    INSURANCE. (i) $56,600.00 on the Disbursement Date, and (ii)
                  on the first payment date on which both principal and interest
                  under the Loan are payable and on each payment date
                  thereafter, an amount estimated from time to time by Lender in
                  its reasonable discretion to be sufficient to pay for premiums
                  for insurance payable by Borrower under Section 6.10 of each
                  of the Mortgages. The initial estimated monthly amount to be
                  deposited by Borrower on each payment date is $7,075.00.

            c.    DEFERRED MAINTENANCE. $78,413.00 on the Disbursement Date for
                  Deferred Maintenance Work (defined below).

            d.    CAPITAL EXPENDITURES. $21,131.17 on the first payment date on
                  which both principal and interest under the Loan are payable
                  and on each payment date thereafter for payment or
                  reimbursement of Capital Expenditures (defined below).
                  Notwithstanding the foregoing, once $760,722.12 is held in
                  this account (the "Capped Amount"), Borrower may temporarily
                  cease making payments to this account; provided, however, that
                  upon a release of Impounds from this account causing the
                  amount held in such account to drop beneath the Capped Amount,
                  Borrower must immediately resume payments on each payment date
                  until such time as the Capped Amount has been reached.

3.2   APPLICATION.

      a.    TAXES. If no Default exists, Lender shall apply the Impounds in a
            timely fashion to the payment of the taxes and other liabilities
            stated above.

      b.    INSURANCE. If no Default exists, Lender shall apply the Impounds to
            the payment of the insurance premiums stated above.

      c.    DEFERRED MAINTENANCE WORK. If no Default exists, Lender shall
            release the Impounds to Borrower once a quarter, no less than
            $25,000.00 per release, to pay or reimburse Borrower for the
            Deferred

                                   EXHIBIT A
                                       2
<PAGE>   14
            Maintenance Work (defined below); provided, however, that Lender
            shall have received and approved each of the following:

            (i)   Borrower's written request for such release, describing the
                  Deferred Maintenance Work and a cost breakdown thereof in
                  reasonable detail, and certifying that all such Deferred
                  Maintenance Work has been completed lien-free and in a
                  workmanlike manner; and

            (ii)  an inspection report signed by an inspector selected by
                  Lender, whose fees and expenses shall be paid by Borrower, and
                  such other evidence as Lender shall require, confirming
                  Borrower's certification.

      d.    CAPITAL EXPENDITURES. If no Default exists, Lender shall release the
            Impounds to Borrower once a quarter, no less than $50,000.00 per
            release, to pay or reimburse Borrower for the Capital Expenditures
            (defined below); provided, however, that Lender shall have received
            and approved each of the following:

            (i)   Borrower's written request for such release, describing the
                  Capital Expenditures and certifying that all Capital
                  Expenditures have been paid or incurred by Borrower for work
                  completed lien-free and in a workmanlike manner;

            (ii)  copies of invoices supporting the request for such release;
                  and

            (iii) if deemed necessary by Lender, an inspection report signed by
                  an inspector selected by Lender, whose fees and expenses shall
                  be paid by Borrower, and such other evidence as Lender shall
                  reasonably require, confirming borrower's certification.

3.3   GENERAL. Any portion of the Impounds that exceeds the amount required for
      payment of the foregoing costs shall be repaid to Borrower upon Borrower's
      compliance with the foregoing. Reference is made to Section 6.12(b) of
      each of the Mortgages for a description of the account into which the
      Impounds shall be deposited and for a description of certain rights and
      remedies of Lender with respect to amounts in such account.

3.4   MAINTENANCE AND CONSTRUCTION.

      a.    DEFERRED MAINTENANCE WORK. Borrower shall complete the lien-free
            performance of the Deferred Maintenance Work (as defined below) on
            or before December 31, 2000. Borrower shall perform the Deferred
            Maintenance Work in a workmanlike manner and in accordance with all
            applicable laws, ordinances, rules and regulations. "Deferred
            Maintenance Work" shall mean the repairs to the roof drain, gazebo,
            waste water treatment plant, asphalt, pool, fence and water heater
            all as more fully described in the Property Condition Survey dated
            May 22, 2000, prepared by National Assessment Corporation with
            respect to the Colonies of Margate Property and Mid-Florida Lakes
            Property, and prepared by Integrated Property Analysis, Inc. with
            respect to the DeAnza Santa Cruz Property.

      b.    CAPITAL EXPENDITURES. Borrower shall complete the lien-free
            performance or installation of the Capital Expenditures (as defined
            below) from time to time as necessary, in a workmanlike manner and
            in accordance with all applicable laws, ordinances, rules and
            regulations. "Capital Expenditures" shall mean major repairs and
            replacements to maintain or improve the Properties, including,
            without limitation, structural repairs, roof replacements, HVAC
            repairs and replacements, mechanical and plumbing repairs and
            replacements and boiler repair and replacements.

      c.    RIGHT OF INSPECTION. Lender shall have the right to enter upon the
            Properties at all reasonable times, subject to reasonable notice
            except in the event of an emergency, in which case no notice shall
            be required, to inspect all work for the purpose of verifying
            information disclosed or required pursuant to this Note, in a manner
            which does not unreasonably interfere with the operations on the
            Properties. Notwithstanding the foregoing, Lender shall not be
            obligated to supervise or inspect any work or to inform Borrower or
            any third party regarding any aspect of any work.

                                   EXHIBIT A
                                       3
<PAGE>   15
3.5   RELEASE. Lender shall release any Impounds to Borrower through a funds
      transfer of such Impounds initiated by Lender to the following account or
      such other account as Borrower specifies in a notice to Lender:

                  Bank Name:  Bank of America
            ABA Routing No.:  071-000039
               Account Name:  7366-9-01095
                  Reference:  MHC Operating Limited Partnership
                     Advise:  Megan McBride (312) 828-6274

            Lender will determine the funds transfer system and other means to
            be used in making each such release. Borrower agrees that each such
            funds transfer initiated by Lender will be deemed to be a funds
            transfer properly authorized by Borrower, even if the transfer is
            not actually properly authorized by Borrower. Borrower acknowledges
            that Lender will rely on the account number and ABA routing number
            set forth above or specified in a notice from Borrower to Lender,
            even if such account number identifies an account with a name
            different from the name so specified, or the routing number
            identifies a bank different from the bank so specified. If Borrower
            learns of any error in the transfer of any Impounds or of any
            transfer which was not properly authorized, Borrower shall notify
            Lender as soon as possible in writing but in no case more than 14
            days after Lender's first confirmation to Borrower of such transfer.

4.    ONE-TIME RIGHT OF TRANSFER OF PROPERTY TO THIRD PARTY. Notwithstanding
      anything to the contrary contained in Section 6.15 of the Mortgages,
      Lender shall, one time only, consent to the voluntary sale or exchange of
      all (but not less than all) of the Properties to a bona-fide third party
      purchaser ("Transfer"), if no Default has occurred and is continuing, no
      event has occurred which, with the giving of notice or the passage of
      time, or both, would constitute a Default and all of the following
      conditions have been satisfied:

      4.1   Lender receives at least sixty-five (65) days prior written notice
            of the proposed Transfer;

      4.2   Lender's reasonable determination that the proposed purchaser, the
            proposed guarantor, if any, and the Properties all satisfy Lender's
            then applicable credit review and underwriting standards, taking
            into consideration, among other things, (a) any decrease in the
            Properties' cash flow which would result from any increase in real
            property taxes due to any anticipated reassessment of the Properties
            for tax purposes and (b) any then applicable requirement of Lender
            that such proposed borrowing entity constitute a single purpose
            asset and bankruptcy remote entity which, at the time of the
            Transfer, shall be in full compliance with the representations and
            covenants set forth in Section 5.2 of the Mortgages (as such
            representations may be reasonably modified by Lender after reviewing
            the ownership structure of the proposed borrowing entity);

      4.3   if required by Lender, delivery to Lender of a non-consolidation
            opinion from a law firm reasonably acceptable to Lender and in form
            and substance reasonably satisfactory to Lender;

      4.4   Lender's reasonable determination that the proposed purchaser
            possesses satisfactory recent experience in the ownership and
            operation of properties comparable to the Properties;

      4.5   the execution and delivery to Lender of such documents and
            instruments as Lender shall reasonably require, in form and content
            reasonably satisfactory to Lender, including, without limitation,
            (i) an assumption agreement under which the purchaser assumes all
            obligations and liabilities of Borrower under this Note and the
            other Loan Documents and agrees to periodically pay such new or
            additional Impounds to Lender as Lender may reasonably require, and
            (ii) a consent to the Transfer by any existing guarantor and a
            reaffirmation of such guarantor's obligations and liabilities under
            any guaranty made in connection with the Loan or a new guaranty
            executed by a new guarantor reasonably satisfactory to Lender;

      4.6   if required by Lender, delivery to Lender of evidence of title
            insurance reasonably satisfactory to Lender insuring Lender that the
            liens of the Mortgages and the priority thereof will not be impaired
            or affected by reason of such Transfer of the Properties;

      4.7   payment to Lender of an assumption fee equal to 0.5% of the then
            outstanding principal balance of this Note;

      4.8   if reasonably required by Lender, deposit with Lender of any new or
            additional Impounds;

                                   EXHIBIT A
                                       4
<PAGE>   16
      4.9   reimbursement to Lender of any and all costs and expenses paid or
            incurred by Lender in connection with such Transfer, including,
            without limitation, all in-house or outside counsel attorneys' fees,
            title insurance fees, appraisal fees, inspection fees, environmental
            consultant's fees and any fees or charges of the applicable Rating
            Agencies;

      4.10  if required by Lender, delivery to Lender of written evidence from
            the applicable Rating Agencies that such Transfer will not result in
            a downgrading, withdrawal or qualification of the respective ratings
            in effect immediately prior to the Transfer for any securities
            issued in connection with the securitization of the Loan which are
            then outstanding; and

      4.11  any third party consents or approvals that are required in order to
            consummate the contemplated transaction shall have been obtained and
            Lender shall be provided with satisfactory evidence of same.

Lender shall fully release Borrower and any existing guarantor from any further
obligation or liability to Lender under this Note and the other Loan Documents
upon the assumption by the purchaser and any new guarantor of all such
obligations and liabilities and the satisfaction of all other conditions
precedent to a Transfer in accordance with the provisions of this Section.

5.    TRANSFER OF PROPERTY TO AN AFFILIATE. Notwithstanding anything to the
      contrary contained in Section 6.15 of the Mortgage, Lender shall one time
      only with respect to each of the Properties consent to either (a) the
      voluntary sale or exchange of such Property by deed to an Affiliate of
      Manufactured Home Communities, Inc. ("MHC") or (b) the assignment by
      DeAnza of any Nominee Agreement executed by and between DeAnza, as
      Principal, and Snowbirdland, as Agent, pertaining to such Property, to an
      Affiliate of MHC (both of which are referred to herein as an "Affiliate
      Transfer"), if no Default has occurred and is continuing, no event has
      occurred which, with the giving of notice or the passage of time, or both,
      would constitute a Default and all of the following conditions have been
      satisfied:

      5.1   Lender receives at least sixty-five (65) days prior written notice
            of the proposed Affiliate Transfer;

      5.2   Lender's reasonable determination that (a) such Property's cash flow
            will not be materially and adversely impacted due to any increase in
            real property taxes resulting from the Affiliate Transfer and (b)
            the Affiliate of MHC satisfies any then applicable requirement of
            Lender that such proposed borrowing entity constitute a single
            purpose asset and bankruptcy remote entity which, at the time of the
            transfer, shall be in full compliance with the representations and
            covenants set forth in Section 5.2 of the Mortgage encumbering such
            Property (as such representations may be reasonably modified by
            Lender after reviewing the ownership structure of the proposed
            borrowing entity);

      5.3   if required by Lender, delivery to Lender of a non-consolidation
            opinion from a law firm reasonably acceptable to Lender and in form
            and substance reasonably satisfactory to Lender;

      5.4   the execution and delivery to Lender of such documents and
            instruments as Lender shall reasonably require, in form and content
            reasonably satisfactory to Lender, including, without limitation,
            (i) an assumption agreement under which the purchaser assumes all
            obligations and liabilities of Borrower under this Note and the
            other Loan Documents and agrees to periodically pay such new or
            additional Impounds to Lender as Lender may reasonably require, and
            (ii) a consent to the Affiliate Transfer by any existing guarantor
            and a reaffirmation of such guarantor's obligations and liabilities
            under any guaranty made in connection with the Loan or a new
            guaranty executed by a new guarantor reasonably satisfactory to
            Lender;

      5.5   if required by Lender, delivery to Lender of evidence of title
            insurance reasonably satisfactory to Lender insuring Lender that the
            lien of such Mortgage and the priority thereof will not be impaired
            or affected by reason of such Affiliate Transfer of any such
            Property;

      5.6   reimbursement to Lender of any and all costs and expenses paid or
            incurred by Lender in connection with such Affiliate Transfer,
            including, without limitation, all in-house or outside counsel
            attorneys' fees, title insurance fees, appraisal fees, inspection
            fees, environmental consultant's fees and any fees or charges of the
            applicable Rating Agencies;

      5.7   if required by Lender, delivery to Lender of written evidence from
            the applicable Rating Agencies that such Affiliate Transfer will not
            result in a downgrading, withdrawal or qualification of the
            respective ratings in

                                   EXHIBIT A
                                       5
<PAGE>   17
            effect immediately prior to the Affiliate Transfer for any
            securities issued in connection with the securitization of the Loan
            which are then outstanding; and

      5.8   any third party consents or approvals that are required in order to
            consummate the contemplated transaction shall have been obtained and
            Lender shall be provided with satisfactory evidence of same.

      Lender shall fully release Borrower from any further obligation or
      liability to Lender under this Note and the other Loan Documents upon the
      assumption by the Affiliate of all such obligations and liabilities and
      the satisfaction of all other conditions precedent to an Affiliate
      Transfer in accordance with the provisions of this Section. In addition to
      the Affiliate Transfer permitted above, Lender's consent shall not be
      required for the normal day to day trading of shares of MHC in the public
      securities market and such transactions shall not constitute an Affiliate
      Transfer hereunder.

6.    REPLACEMENT PROPERTIES. Upon at least 65 days' but not more than 90 days'
      written notice to Lender specifying the date of Borrower's intended
      substitution ("Substitution Date"), which date shall be a scheduled
      payment date, Borrower may elect to cause Lender to release one or more of
      the Properties from the lien of the Mortgage encumbering such Property,
      provided that simultaneously with such release, Borrower shall execute and
      deliver to Lender, as security for the Loan, a mortgage, deed of trust or
      deed to secure debt, as applicable ("Replacement Mortgage"), encumbering a
      manufactured housing community property ("Replacement Property"), in
      substantially the same form as the Mortgage to be released, such other
      documents as Lender may reasonably require for the purpose of granting
      Lender a first priority, perfected lien on and security interest in such
      Replacement Property and all related rents, personal property, reserves
      and escrows on the same terms and conditions as the liens and security
      interests granted to Lender in such Property on the Effective Date, and
      such other modifications and amendments to the Loan Documents as may be
      necessitated due to the substitution of the Replacement Property for the
      Property that will be released (all of the foregoing, together with the
      Replacement Mortgage, the "Replacement Documents").

      6.1   Borrower's right to obtain a release of a Property shall also be
            subject to the following conditions and restrictions:

            a.    no Default shall have occurred and be continuing and no event
                  has occurred which, with the giving of notice or the passage
                  of time, or both, would constitute a Default;

            b.    Borrower shall not, over the life of the Loan, be entitled to
                  replace Properties having, in the aggregate, an Allocated Loan
                  Amount of more thirty percent (30%) of the Loan;

            c.    at least sixty-five (65) days prior to the proposed date of
                  such release, Lender shall have obtained an appraisal of the
                  Replacement Property and, if required by Lender, updated
                  appraisals of the Remaining Properties, prepared by Cushman &
                  Wakefield, or such other third-party real estate professional
                  that is approved by the Rating Agencies, indicating that the
                  Loan-to-Value Ratio as of the date of such release, obtained
                  by using the "as-is" value of the proposed Replacement
                  Property set forth in such appraisal together with the "as-is"
                  value of the Remaining Properties as of the date of such
                  proposed release if new appraisals are required by Lender for
                  the Remaining Properties, or as of the Disbursement Date if
                  new appraisals are not required by Lender, is at least equal
                  to the Loan-to-Value Ratio existing on the Disbursement Date
                  which is sixty-three percent (63%);

            d.    Lender shall have obtained a Phase I environmental report and,
                  if recommended by such Phase I report, a Phase II
                  environmental report prepared by The SI Group, Inc., or such
                  other environmental consultant as is approved by the Rating
                  Agencies, stating that the Replacement Property complies with
                  all applicable environmental laws;

            e.    Lender shall have obtained an engineering report, prepared by
                  National Assessment Corporation, or such other consulting
                  engineer as is approved by the Rating Agencies, stating that
                  the Replacement Property complies with all applicable building
                  laws and does not require performance of deferred maintenance,
                  or if remedial steps are required to effect such compliance or
                  such deferred maintenance, identifying such steps and
                  projecting the cost thereof, which may not exceed $50,000.00,
                  and in which case Borrower shall be required to deposit with
                  Lender an amount equal to one hundred fifty percent (150%) of
                  such projected costs, which shall be deemed Impounds to be
                  released substantially in accordance with the provisions
                  contained in Section 3 of Exhibit A to this Note;

                                   EXHIBIT A
                                       6
<PAGE>   18
            f.    Borrower shall have caused to be delivered all leases, title
                  commitments, title insurance policies, surveys, hazard and
                  liability insurance, evidence of compliance with zoning and
                  other laws, legal opinions and other items of due diligence
                  with respect to the Replacement Property as the Rating
                  Agencies may require, all of which shall be in form and
                  substance acceptable to the Rating Agencies;

            g.    the Debt Service Coverage Ratio, calculated by substituting
                  the Net Operating Income of the Replacement Property for the
                  Net Operating Income of the Property to be released, combined
                  with the Net Operating Income of the Remaining Properties, as
                  of the time of such release shall be at least equal to the
                  Debt Service Coverage Ratio existing on the Disbursement Date
                  which is 1.41 to 1;

            h.    the Person transferring the Replacement Property to a Borrower
                  shall be solvent and shall be making such transfer on an arm's
                  length basis and for fair consideration, and such Borrower and
                  such Person shall deliver certifications and evidence to such
                  effect and such other certifications as Lender shall
                  reasonably require to assure itself that the substitution does
                  not constitute a fraudulent conveyance on the part of any
                  Person (assuming such Person was not solvent at the time of
                  substitution);

            i.    Borrower shall comply with such other terms and conditions as
                  the Rating Agencies shall require in connection with such
                  substitution;

            j.    the organizational documents of the applicable Borrower shall,
                  if required, be modified to permit the ownership and operation
                  of the Replacement Property;

            k.    an opinion of counsel for Borrower in form and substance and
                  delivered by counsel satisfactory to Lender in its sole
                  discretion stating, among other things, that any REMIC Trust
                  formed pursuant to a securitization will not fail to maintain
                  its status as a "real estate mortgage investment conduit"
                  within the meaning of Internal Revenue Code Section 860D, as
                  amended from time to time, or any successor statute, as a
                  result of the release of such Property and the substitution of
                  the Replacement Property;

            l.    the applicable Borrower shall transfer title to the Property
                  to be released to a Person other than such Borrower or any
                  other Borrower;

            m.    written evidence from the applicable Rating Agencies that the
                  proposed release of such Property and substitution of the
                  Replacement Property will not result in a downgrading,
                  withdrawal or qualification of the respective ratings in
                  effect immediately prior to such release and substitution for
                  any securities issued in connection with the securitization
                  which are then outstanding;

            n.    any third party consents or approvals that are required in
                  order to consummate the contemplated transaction shall have
                  been obtained and Lender shall be provided with satisfactory
                  evidence of same;

            o.    delivery to Lender of evidence of title insurance reasonably
                  satisfactory to Lender; and

            p.    reimbursement to Lender of any and all costs and expenses paid
                  or incurred by Lender in connection with the request to
                  substitute a Replacement Property, including, without
                  limitation, all in-house or outside counsel attorneys' fees,
                  title insurance fees, appraisal fees, inspection fees,
                  environmental consultant's fees and any fees or charges of the
                  applicable Rating Agencies.

7.    CONTRIBUTION AMONG THE ENTITIES THAT COMPRISE THE  BORROWER.

      7.1   CONTRIBUTION. To provide for just and equitable contribution among
            the entities that comprise the Borrower, if any payment is made by a
            Borrower (a "Funding Borrower") hereunder or under any other Loan
            Document in respect of the Secured Obligations (as defined in each
            of the Mortgages), such Funding Borrower shall be entitled to a
            contribution from the other entities that comprise the Borrower for
            all payments, damages and expenses incurred by such Funding Borrower
            under or in connection with such Secured Obligations, such
            contributions to be made in the manner and to the extent set forth
            below. Any amount payable as a contribution under this Note shall be
            determined as of the date on which the related payment is made by a
            Funding Borrower.

                                   EXHIBIT A
                                       7
<PAGE>   19
      7.2   CALCULATION OF CONTRIBUTIONS. Each Borrower shall be liable for
            contribution to each Funding Borrower in respect of all payments,
            damages and expenses incurred by such Funding Borrower hereunder or
            under any other Loan Document in an aggregate amount, subject to
            Section 7.3 hereof, equal to (i) the ratio of (x) the Property Worth
            of the applicable Property owned by such Borrower to (y) the
            Property Worth of the Properties owned by all of the entities that
            comprise the Borrower, multiplied by (ii) the aggregate amount of
            such payments, damages and expenses incurred by such Funding
            Borrower under or in connection with the Secured Obligations.

      7.3   RIGHTS TO CONTRIBUTION SUBORDINATED. Each Borrower agrees that all
            of its rights to receive contributions under this Section 7 (whether
            for payments, damages, expenses or otherwise) and all of its rights,
            if any, to be subrogated to any of the rights of Lender shall be
            subordinated in right of payment (in liquidation or otherwise) to
            the prior payment in full in cash of all of the Secured Obligations
            (whether for principal, interest, premium or otherwise). If any
            amount shall at any time be paid to a Borrower on account of such
            rights of contribution or subrogation, or in contravention of the
            provisions of this Section 7.3 at any time, such amount shall be
            held in trust, segregated from the other assets of such Borrower,
            for the benefit of the Lender and shall promptly be paid to the
            Lender. The foregoing shall constitute a continuing offer to, and
            agreement with, all persons that from time to time may become
            holders of, or continue to hold, Secured Obligations under this
            Note, and the provisions of the foregoing sentence are made for the
            benefit of such holders and such holders, as third party
            beneficiaries hereunder, are entitled to enforce such provisions.

8.    DATE PALM COUNTRY CLUB PROPERTY TRANSFERS. Notwithstanding anything to the
      contrary contained in Section 6.15 of the Mortgage, and in addition to the
      rights contained in Section 5 of this Exhibit A, Lender shall one time
      only with respect to the Date Palm Country Club Property consent to either
      (a) the voluntary transfer of the Date Palm Country Club Property by
      assignment of lease to DeAnza or (b) the assignment of all or any portion
      of the membership interests in Date Palm to DeAnza (both of which are
      referred to herein as the "Date Palm Transfer"), if no Default has
      occurred and is continuing, no event has occurred which, with the giving
      of notice or the passage of time, or both, would constitute a Default and
      all of the following conditions have been satisfied:

      8.1   Lender receives at least sixty-five (65) days prior written notice
            of the proposed Date Palm Transfer;

      8.2   if required by Lender, delivery to Lender of a non-consolidation
            opinion from a law firm reasonably acceptable to Lender and in form
            and substance reasonably satisfactory to Lender;

      8.3   the execution and delivery to Lender of such documents and
            instruments as Lender shall reasonably require, in form and content
            reasonably satisfactory to Lender, including, without limitation, a
            consent to the Date Palm Transfer by any existing guarantor and a
            reaffirmation of such guarantor's obligations and liabilities under
            any guaranty made in connection with the Loan or a new guaranty
            executed by a new guarantor reasonably satisfactory to Lender;

      8.4   if required by Lender, delivery to Lender of evidence of title
            insurance reasonably satisfactory to Lender insuring Lender that the
            lien of such Mortgage and the priority thereof will not be impaired
            or affected by reason of such Date Palm Transfer;

      8.5   reimbursement to Lender of any and all costs and expenses paid or
            incurred by Lender in connection with such Date Palm Transfer,
            including, without limitation, all in-house or outside counsel
            attorneys' fees, title insurance fees, appraisal fees, inspection
            fees, environmental consultant's fees and any fees or charges of the
            applicable Rating Agencies;

      8.6   if required by Lender, delivery to Lender of written evidence from
            the applicable Rating Agencies that such Date Palm Transfer will not
            result in a downgrading, withdrawal or qualification of the
            respective ratings in effect immediately prior to the Date Palm
            Transfer for any securities issued in connection with the
            securitization of the Loan which are then outstanding; and

      8.7   any third party consents or approvals that are required in order to
            consummate the contemplated transaction shall have been obtained and
            Lender shall be provided with satisfactory evidence of same.

If the Date Palm Transfer consists of an assignment of lease to DeAnza, then
Lender shall fully release Date Palm from any further obligation or liability to
Lender under this Note and the other Loan Documents upon the assumption by
DeAnza of all

                                   EXHIBIT A
                                       8
<PAGE>   20
such obligations and liabilities and the satisfaction of all other conditions
precedent to the Date Palm Transfer in accordance with the provisions of this
Section.

9.    DATE PALM APPROVAL, REPLACEMENT OR REPAYMENT. In the event that Borrower
      has not obtained the approval of the Bureau of Indian Affairs with respect
      to the Loan (the "Date Palm Approval") by the Effective Date, then the
      Title Company will not record the Date Palm Leasehold Deed of Trust and
      Lender will not disburse to Borrower the Allocated Loan Amount
      attributable to the Date Palm Country Club Property in the amount of
      $15,750,000 (the "Date Palm Escrow"). Instead, Lender shall disburse the
      Date Palm Escrow into an interest-bearing pledged account maintained by
      Lender for the benefit of Borrower until such time as Borrower has
      delivered evidence of the Date Palm Approval to Lender in form and
      substance satisfactory to Lender, together with such other documents and
      instruments that were to be delivered to Lender on or before the Effective
      Date if the Date Palm Approval had been obtained on or before the
      Effective Date (the "Date Palm Ground Lease Documents"). Upon delivery of
      the Date Palm Approval and the Date Palm Ground Lease Documents, Lender
      shall disburse the Date Palm Escrow and the Title Company will be directed
      to record the Date Palm Leasehold Deed of Trust.

      The Date Palm Escrow shall constitute Collateral (as defined in the
      Mortgages). Upon any Default, Lender shall have the right, in addition to
      any other rights of Lender under the Loan Documents, to foreclose its
      security interest in the Date Palm Escrow and apply the sums in the Date
      Palm Escrow to the repayment of the indebtedness outstanding under this
      Note in such order as Lender shall determine. At any time and from time to
      time, promptly upon Lender's request, Borrower shall execute such
      additional documents and instruments as Lender shall reasonably deem
      necessary or desirable for the purpose of confirming and perfecting
      Lender's security interest in the Date Palm Escrow.

      In the event Borrower is unable to obtain the Date Palm Approval and the
      Date Palm Ground Lease Documents by September 1, 2000 (the "Date Palm
      Determination Date"), then on the Date Palm Determination Date Borrower
      must either: (1) pay down the Loan ("Date Palm Repayment Option") in the
      amount of the Date Palm Escrow with no prepayment charge, but subject to
      the payment of Hedge Losses (as hereinafter defined) or (2) substitute for
      the Date Palm Country Club Property a Replacement Property ("Date Palm
      Replacement Option") by providing written notice to Lender on or before
      August 1, 2000 ("Date Palm Notification Date") specifying Borrower's
      intention to replace the Date Palm Country Club Property with the
      Replacement Property. Borrower shall reimburse Lender for any and all
      costs and expenses paid or incurred by Lender in connection with the Date
      Palm Approval, the Date Palm Repayment Option and the Date Palm
      Replacement Option, including, without limitation, all in-house or outside
      counsel attorneys' fees and any title insurance fees, appraisal fees,
      inspection fees and environmental consultant's fees.

      9.1   In the event Borrower exercises the Date Palm Repayment Option, at
            such time as Lender has received payment of the Hedge Losses, Lender
            shall direct the Title Company to return the Date Palm Leasehold
            Deed of Trust to Borrower, together with such other documents held
            in escrow by the Title Company pertaining to the Date Palm Country
            Club Property. Lender shall fully release Date Palm from any further
            obligation or liability to Lender under this Note and the other Loan
            Documents upon the satisfaction of all other conditions precedent to
            the Date Palm Repayment Option in accordance with the provisions of
            this Section. Borrower acknowledges that, in connection with the
            making of this Loan, Lender has initiated either a short sale or
            purchase of United States Treasury Note future or option contracts,
            as well as other interest rate arrangements (collectively referred
            to herein as the "Hedge Agreements") based upon the full amount of
            the Loan and the full term of the Loan. Accordingly, the Date Palm
            Repayment Option may cause Lender to incur certain losses, costs,
            and expenses in connection with the Hedge Agreements attributable to
            the funds on deposit in the Date Palm Escrow ("Hedge Losses").
            Borrower agrees to be liable for the Hedge Losses, if any, in the
            event it exercises the Date Palm Repayment Option.

      9.2   In the event that Borrower exercises the Date Palm Replacement
            Option, then Lender will direct the Title Company to return the Date
            Palm Leasehold Deed of Trust to Borrower, together with such other
            documents held in escrow by the Title Company pertaining to the Date
            Palm Country Club Property, provided that simultaneously with such
            return, Borrower shall execute and deliver to Lender, as security
            for the Loan, a Replacement Mortgage encumbering the Replacement
            Property, in substantially the same form as the other Mortgages, and
            such other documents as Lender may reasonably require for the
            purpose of granting Lender a first priority, perfected lien on and
            security interest in such Replacement Property and all related
            rents, personal property, reserves and escrows on the same terms and
            conditions as the liens and security interests granted to Lender in
            the other Properties on the Effective Date, and such other
            modifications and amendments to the Loan Documents as may be
            necessitated due to the substitution of the Replacement Property for
            the Date

                                       9
<PAGE>   21
            Palm Country Club Property (all of the foregoing, together with the
            Replacement Mortgage, the "Date Palm Replacement Documents").

      9.3   Borrower's right to replace the Date Palm Country Club Property with
            a Replacement Property shall also be subject to the following
            conditions and restrictions, which if not met by the Date Palm
            Determination Date will result in a determination that Borrower has
            elected the Date Palm Repayment Option:

            a.    as of the Date Palm Determination Date, no Default shall have
                  occurred and be continuing and no event has occurred which,
                  with the giving of notice or the passage of time, or both,
                  would constitute a Default;

            b.    Lender shall have obtained an appraisal of the Replacement
                  Property and, if required by Lender, updated appraisals of the
                  Remaining Properties, prepared by Cushman & Wakefield, or such
                  other third-party real estate professional that is approved by
                  Lender, indicating that the Loan-to-Value Ratio as of the Date
                  Palm Determination Date, obtained by using the "as-is" value
                  of the proposed Replacement Property set forth in such
                  appraisal together with the "as-is" value of the Remaining
                  Properties as of the Date Palm Determination Date if new
                  appraisals are required by Lender for the Remaining
                  Properties, or as of the Disbursement Date if new appraisals
                  are not required by Lender, is at least equal to the
                  Loan-to-Value Ratio existing on the Disbursement Date which is
                  sixty-three percent (63%);

            c.    Lender shall have obtained a Phase I environmental report and,
                  if recommended by such Phase I report, a Phase II
                  environmental report prepared by The SI Group, Inc., or such
                  other environmental consultant as is approved by Lender,
                  stating that the Replacement Property complies with all
                  applicable environmental laws;

            d.    Lender shall have obtained an engineering report, prepared by
                  National Assessment Corporation, or such other consulting
                  engineer as is approved by Lender, stating that the
                  Replacement Property complies with all applicable building
                  laws and does not require performance of deferred maintenance,
                  or if remedial steps are required to effect such compliance or
                  such deferred maintenance, identifying such steps and
                  projecting the cost thereof, which may not exceed $50,000.00,
                  and in which case Borrower shall be required to deposit with
                  Lender an amount equal to one hundred fifty percent (150%) of
                  such projected costs, which shall be deemed Impounds to be
                  released substantially in accordance with the provisions
                  contained in Section 3 of Exhibit A to this Note;

            e.    Borrower shall have caused to be delivered on or before the
                  Date Palm Notification Date all leases, title commitments,
                  title insurance policies, surveys, hazard and liability
                  insurance, evidence of compliance with zoning and other laws,
                  legal opinions and other items of due diligence with respect
                  to the Replacement Property as Lender may require, and which
                  were delineated in the loan application letter between Lender
                  and Borrower, all of which shall be in form and substance
                  acceptable to Lender;

            f.    the Debt Service Coverage Ratio, calculated by substituting
                  the Net Operating Income of the Replacement Property for the
                  Net Operating Income of the Date Palm Country Club Property,
                  combined with the Net Operating Income of the Remaining
                  Properties, as of the Date Palm Determination Date shall be at
                  least equal to the Debt Service Coverage Ratio existing on the
                  Disbursement Date which is 1.41 to 1;

            g.    the Person transferring the Replacement Property to a Borrower
                  shall be solvent and shall be making such transfer on an arm's
                  length basis and for fair consideration, and such Borrower and
                  such Person shall deliver certifications and evidence to such
                  effect and such other certifications as Lender shall
                  reasonably require to assure itself that the substitution does
                  not constitute a fraudulent conveyance on the part of any
                  Person (assuming such Person was not solvent at the time of
                  substitution);

            h.    the organizational documents of the applicable Borrower shall,
                  if required, be modified to permit the ownership and operation
                  of the Replacement Property;

            i.    if the Replacement Property is acquired by Date Palm, then
                  Date Palm shall transfer title to the Date Palm Country Club
                  Property to a Person other than Date Palm or any other
                  Borrower;

                                   EXHIBIT A
                                       10
<PAGE>   22
            j.    if the Replacement Property is acquired by a Borrower other
                  than Date Palm, then Date Palm shall be fully released from
                  any further obligation or liability to Lender under this Note
                  and the other Loan Documents upon the satisfaction of all
                  other conditions precedent to the Date Palm Replacement Option
                  in accordance with the provisions of this Section;

            k.    any third party consents or approvals that are required in
                  order to consummate the contemplated transaction shall have
                  been obtained and Lender shall be provided with satisfactory
                  evidence of same; and

            l.    delivery to Lender of evidence of title insurance reasonably
                  satisfactory to Lender.

Borrower acknowledges and agrees that in order for Lender to obtain and analyze
the third party reports specified in Subsections 9.3(b), (c) and (d) of Exhibit
A of this Note before the Date Palm Determination Date, Borrower will need to
identify the Replacement Property to Lender before the Date Palm Notification
Date. Borrower further acknowledges and agrees that in no event shall Lender be
liable to Borrower in any aspect whatsoever in the event that the conditions
specified in 9.3(b), (c) and (d) of Exhibit A of this Note have not been
satisfied by the Date Palm Determination Date thus requiring Borrower to elect
the Date Palm Repayment Option.

                                   EXHIBIT A
                                       11
<PAGE>   23
                          EXHIBIT B TO PROMISSORY NOTE
                   LOAN DOCUMENTS AND OTHER RELATED DOCUMENTS

This Exhibit B is attached to and forms a part of that Amended, Restated and
Consolidated Promissory Note ("Note") executed by MHC-DEANZA FINANCING LIMITED
PARTNERSHIP, an Illinois limited partnership ("DeAnza"), SNOWBIRDLAND VISTAS,
INC., an Illinois corporation ("Snowbirdland") and MHC DATE PALM, L.L.C., a
Delaware limited liability company ("Date Palm") (DeAnza, Date Palm and
Snowbirdland are individually and collectively, as the context requires and with
such determination to be made in the sole discretion of Lender, referred to
herein as the "Borrower") in favor of WELLS FARGO BANK, NATIONAL ASSOCIATION
("Lender").

1.    LOAN DOCUMENTS. The documents numbered 1.1 through 1.21 below of even date
      herewith (unless otherwise specified) and any amendments, modifications
      and supplements thereto which have received the prior written approval of
      Lender and any documents executed in the future that are approved by
      Lender and that recite that they are "Loan Documents" for purposes of this
      Note are collectively referred to as the "Loan Documents".

      1.1   This Note;

      1.2   Mid-Florida Lakes Mortgage, Bay Lake Mortgage, Buccaneer Mortgage,
            Colonies Mortgage, Willow Lake Mortgage, DeAnza Deed of Trust and
            Date Palm Leasehold Deed of Trust;

      1.3   Bay Lake Note, Buccaneer Note, Colonies Note and Mid-Florida Lakes
            Note, each endorsed to the order of Lender pursuant to those certain
            Allonge Endorsements to Promissory Note executed by Pacific;

      1.4   Notices and Acknowledgements of Future Advance executed by
            Snowbirdland and DeAnza respectively for the Mid-Florida Lakes
            Property, Bay Lake Estates Property, Buccaneer Estates Property and
            Colonies of Margate Property;

      1.5   (a) The Florida real estate mortgage dated August 14, 1994, in the
            original principal amount of $2,218,975.33, executed by
            Snowbirdland, as Agent for DeAnza, and DeAnza in favor of Pacific
            ("Bay Lake Original Mortgage"); (b) the Assignment of Rents and
            Leases dated August 14, 1994, pertaining to property located in
            Nokomis, Florida, executed by Snowbirdland, as Agent for DeAnza, and
            DeAnza in favor or Pacific ("Bay Lake Assignment of Rents"); (c) the
            Florida real estate mortgage dated August 14, 1994, in the original
            principal amount of $8,081,491.39, executed by Snowbirdland, as
            Agent for DeAnza, and DeAnza in favor of Pacific ("Buccaneer
            Original Mortgage"); (d) the Assignment of Rents and Leases dated
            August 14, 1994, pertaining to property located in North Fort Myers,
            Florida, executed by Snowbirdland, as Agent for DeAnza, and DeAnza
            in favor or Pacific ("Buccaneer Assignment of Rents"); (e) the
            Florida real estate mortgage dated August 14, 1994, in the original
            principal amount of $13,323,714.75, executed by Snowbirdland, as
            Agent for DeAnza, and DeAnza in favor of Pacific ("Colonies Original
            Mortgage"); (f) the Assignment of Rents and Leases dated August 14,
            1994, pertaining to property located in Margate, Florida, executed
            by Snowbirdland, as Agent for DeAnza, and DeAnza in favor or Pacific
            ("Colonies Assignment of Rents"); (g) the Florida real estate
            mortgage dated August 14, 1994, in the original principal amount of
            $13,435,390.10, executed by Snowbirdland, as Agent for DeAnza, and
            DeAnza in favor of Pacific ("Mid-Florida Lakes Original Mortgage");
            (h) the Assignment of Rents and Leases dated August 14, 1994,
            pertaining to property located in Leesburg, Florida, executed by
            Snowbirdland, as Agent for DeAnza, and DeAnza in favor or Pacific
            ("Mid-Florida Lakes Assignment of Rents"); each of the foregoing, as
            assigned to Lender by an Assignment of Mortgage and Other Loan
            Documents from Pacific to Lender, are collectively referred to as
            the "Original Mortgages";

      1.6   Bay Lake Future Advance Note, Buccaneer Future Advance Note,
            Colonies Future Advance Note and Mid-Florida Lakes Future Advance
            Note;

      1.7   State of Illinois Commercial Code - Financing Statements - Form
            UCC-1;

      1.8   State of Florida Uniform Commercial Code - Financing Statements -
            Form UCC-1;

                                    EXHIBIT B
                                       1
<PAGE>   24
      1.9   State of California Uniform Commercial Code - Financing Statements -
            Form UCC-1;

      1.10  Corporate Borrowing Resolutions and Certificates of Incumbency;

      1.11  Limited Liability Company Borrowing Certificate;

      1.12  Partnership Borrowing Certificate;

      1.13  Corporate Resolution Authorizing Limited Liability Company Activity
            and Certificate of Incumbency;

      1.14  Corporate Resolution Authorizing Partnership Activity and
            Certificate of Incumbency;

      1.15  Corporate Resolutions Authorizing Execution of Guaranty and
            Endorsement and Hypothecation of Property and Certificate of
            Incumbency;

      1.16  Ground Lease Estoppel Certificate and Agreement;

      1.17  Supplemental Agreement No. 5;

      1.18  Subordination and Estoppel Agreement, executed for the Bay Lake
            Estates Property, Mid-Florida Lakes Property, Buccaneer Estates
            Property and Colonies of Margate Property, respectively;

      1.19  Assignment of Water Services Agreements and Consent and
            Subordination of Water Service Provider, executed for the Buccaneer
            Estates Property, and the Assignments of Water and Sanitary Sewer
            Services Agreements and Consent and Subordination of Water and
            Sanitary Sewer Service Provider, executed for the Colonies of
            Margate Property and the DeAnza Santa Cruz Property, respectively;

      1.20  Assignment of Management Contracts and Consent and Subordination of
            Manager;

      1.21  Stock Pledge Agreements; and

      1.22  O&M Plan Letters executed for the Mid-Florida Lakes Property,
            Buccaneer Estates Property, Colonies of Margate Property, Willow
            Lake Estates Property, DeAnza Santa Cruz Property and Date Palm
            Country Club Property, respectively.

2.    OTHER RELATED DOCUMENTS WHICH ARE NOT LOAN DOCUMENTS.

      2.1   Flood Hazard Notices with respect to the Bay Lake Estates Property,
            and Colonies of Margate Property, respectively;

                                    EXHIBIT B
                                       2
<PAGE>   25
2.2   Limited Guaranty; and

2.3   Bankruptcy Non-Consolidation Opinion of Borrower's legal counsel.

                                    EXHIBIT B
                                       3<PAGE>   1
[WELLS FARGO LOGO]
                              PROMISSORY NOTE SECURED BY LEASEHOLD DEED OF TRUST

EXHIBIT 10.40

                                                            Loan No. 31-0900195R
$15,750,000.00                                         San Francisco, California
                                                                   July 13, 2000

                  THIS PROMISSORY NOTE SECURED BY LEASEHOLD DEED OF TRUST (this
"Note") is made and entered into by and between MHC DATE PALM, L.L.C., a
Delaware limited liability company ("Borrower"), and WELLS FARGO NATIONAL BANK,
NATIONAL ASSOCIATION ("Lender").

1.      PROMISE TO PAY. For value received, Borrower promises to pay to the
        order of Lender, at 1320 Willow Pass Road, Suite 205, Concord,
        California 94520, or at such other place as may be designated in writing
        by Lender, the principal sum of FIFTEEN MILLION SEVEN HUNDRED FIFTY
        THOUSAND AND NO/100THS DOLLARS ($15,750,000.00) ("Loan"), with interest
        thereon as specified herein. All sums owing hereunder are payable in
        lawful money of the United States of America, in immediately available
        funds, without offset, deduction or counterclaim of any kind.

2.      SECURED BY LEASEHOLD DEED OF TRUST. This Note is secured by, among other
        things, that certain Leasehold Deed of Trust and Absolute Assignment of
        Rents and Leases and Security Agreement (And Fixture Filing) ("Leasehold
        Deed of Trust") of even date herewith, executed by Borrower encumbering
        certain real property and improvements located in Cathedral City,
        California, as more particularly described therein ("Property").

3.      DEFINITIONS. For the purposes of this Note, the following terms shall
        have the following meanings:

        "Affiliate" shall mean, as to any specified Person, any other Person
        that, directly or indirectly, is in Control of, is Controlled by or is
        under common Control with such specified Person.

        "Business Day" shall mean any day other than a Saturday, Sunday, legal
        holiday or other day on which commercial banks in California are
        authorized or required by law to close. All references in this Note to a
        "day" or a "date" shall be to a calendar day unless specifically
        referenced as a Business Day.

        "Control" shall mean with respect to such Person either (i) ownership
        directly or through other entities of more than 100% of all beneficial
        equity interest in such Person and (ii) the power to direct the
        management, operation and business of such person.

        "Default" shall have the meaning set forth in the Leasehold Deed of
        Trust.

        "Disbursement Date" shall mean the date upon which the Loan proceeds are
        funded into escrow in connection with the closing of the Loan.

        "Effective Date" shall mean the date Lender authorizes the Loan proceeds
        to be released to Borrower.

        "Loan Documents" shall mean the documents listed in Exhibit B attached
        hereto and incorporated herein by this reference.

        "Maturity Date" shall mean July 1, 2010.

        "Person" shall mean any individual, corporation, partnership, joint
        venture, estate, trust, unincorporated association, any federal, state,
        county or municipal government or any bureau, department or agency
        thereof and any fiduciary acting in such capacity on behalf of any of
        the foregoing.

4.      INTEREST; PAYMENTS.

        4.1     DEFINITIONS. The following terms shall have the meanings
                indicated:

                                       1
<PAGE>   2
                "Actual/360 Basis" shall mean on the basis of a 360-day year and
                charged on the basis of actual days elapsed for any whole or
                partial month in which interest is being calculated.

                "30/360 Basis" shall mean on the basis of a 360-day year
                consisting of 12 months of 30 days each.

                "Interest Rate" shall mean a fixed interest rate equal to 7.96%.

        4.2     INTEREST ACCRUAL. Interest on the outstanding principal balance
                of this Note shall accrue from the Disbursement Date at an
                annual rate equal to the Interest Rate calculated on an
                Actual/360 Basis.

        4.3     PAYMENTS. Monthly payments hereunder shall commence on the first
                day of the calendar month following the Disbursement Date and
                continue on the first day of each calendar month thereafter
                through the Maturity Date. If the Disbursement Date is a date
                other than the first day of a calendar month, the first monthly
                payment shall be interest only. Subsequent monthly payments
                shall be calculated on the basis of an equal-payment thirty (30)
                year amortization of principal and interest. Notwithstanding
                that interest on this Note accrues on an Actual/360 Basis, the
                total amount of each such amortized monthly payment of principal
                and interest shall be determined using a 30/360 Basis. On the
                Maturity Date, all unpaid principal and accrued but unpaid
                interest shall be due and owing in full. All interest shall be
                paid in arrears.

        4.4     ACKNOWLEDGMENTS. Borrower acknowledges that interest calculated
                on an Actual/360 Basis exceeds interest calculated on a 30/360
                Basis and, therefore: (a) a greater portion of each monthly
                installment of principal and interest will be applied to
                interest using the Actual/360 Basis than would be the case if
                interest accrued on a 30/360 Basis; and (b) the unpaid principal
                balance of this Note on the Maturity Date will be greater using
                the Actual/360 Basis than would be the case if interest accrued
                on a 30/360 Basis.

        4.5     APPLICATION OF PAYMENTS. In the absence of a specific
                determination by Lender to the contrary, all payments paid by
                Borrower to Lender in connection with the obligations of
                Borrower under this Note and under the other Loan Documents
                shall be applied in the following order of priority: (a) to
                amounts, other than principal and interest, due to Lender
                pursuant to this Note or the other Loan Documents; (b) to
                accrued but unpaid interest on this Note; and (c) to the unpaid
                principal balance of this Note. Upon the occurrence of a
                Default: (i) Borrower irrevocably waives the right to direct the
                application of any and all payments at any time thereafter
                received by Lender from or on behalf of Borrower, and (ii)
                Borrower irrevocably agrees that Lender shall have the
                continuing exclusive right to apply any and all such payments
                against the then due and owing obligations of Borrower in such
                order of priority as Lender may deem advisable.

5.      LATE CHARGE; DEFAULT RATE.

        5.1     LATE CHARGE. If any payment required hereunder is not paid on or
                before the fifth calendar day of the month in which it is due,
                Borrower shall pay a late or collection charge, as liquidated
                damages, equal to 4% of the amount of such unpaid payment.
                Borrower acknowledges that Lender will incur additional expenses
                as a result of any late payments hereunder, which expenses would
                be impracticable to quantify, and that Borrower's payments under
                this paragraph are a reasonable estimate of such expenses. The
                foregoing to the contrary notwithstanding, no late or collection
                charge shall be payable by Borrower as a result of any delay in
                the payment of any sum due and payable on the Maturity Date.

        5.2     DEFAULT RATE. Commencing upon a Default and continuing until
                such Default shall have been cured by Borrower, all sums owing
                on this Note shall bear interest until paid in full at a rate
                per annum equal to 5% plus the Interest Rate ("Default Rate").

6.      MAXIMUM RATE PERMITTED BY LAW. Neither this Note nor any of the other
        Loan Documents shall require the payment or permit the collection of any
        interest or any late payment charge in excess of the maximum rate
        permitted by law. If any such excess interest or late payment charge is
        provided for under this Note or any of the other Loan Documents or if
        this Note or any of the other Loan Documents shall be adjudicated to
        provide for such excess, neither Borrower nor Borrower's successors or
        assigns shall be obligated to pay such excess, and the right to demand
        the payment of any such excess shall be and hereby is waived, and this
        provision shall control any other provision of this Note or any of the
        other Loan Documents. If Lender shall collect amounts which are deemed
        to constitute interest and which would increase the effective interest
        rate to a rate in excess of the maximum rate permitted by law, all such

                                       2
<PAGE>   3
        amounts deemed to constitute interest in excess of the maximum legal
        rate shall, upon such determination, at the option of Lender, be
        returned to Borrower or credited against the outstanding principal
        balance of this Note.

7.      ACCELERATION. If (a) Borrower shall fail to pay when due, subject to any
        applicable grace or cure period, any sums payable under this Note; (b)
        any other Default shall occur; or (c) any other event or condition shall
        occur which, under the terms of the Leasehold Deed of Trust or any other
        Loan Document, gives rise to a right of acceleration of sums owing under
        this Note, then Lender, at its sole option, shall have the right to
        declare all sums owing under this Note immediately due and payable;
        provided, however, that if the Leasehold Deed of Trust or any other Loan
        Document provides for the automatic acceleration of payment of sums
        owing under this Note, all sums owing under this Note shall be
        automatically due and payable in accordance with the terms of the
        Leasehold Deed of Trust or such other Loan Document.

8.      BORROWER'S LIABILITY.

        8.1     LIMITATION. Except as otherwise provided in this Section 8,
                Lender's recovery against Borrower under this Note and the other
                Loan Documents shall be limited solely to the Property and the
                "Collateral" (as defined in the Leasehold Deed of Trust).

        8.2     EXCEPTIONS. Nothing contained in Section 8.1 or elsewhere in
                this Note or the other Loan Documents, however, shall limit in
                any way the personal liability of Borrower owed to Lender for
                any losses or damages incurred by Lender (including, without
                limitation, any impairment of Lender's security for the Loan)
                with respect to any of the following matters: (a) fraud or
                willful misrepresentation; (b) material physical waste of the
                Property or the Collateral; (c) failure to pay property or other
                taxes, assessments or charges (other than amounts paid to Lender
                for taxes, assessments or charges pursuant to Impounds as
                defined in Exhibit A and where Lender elects not to apply such
                funds toward payment of the taxes, assessments or charges owed)
                which may create liens senior to the lien of the Leasehold Deed
                of Trust on all or any portion of the Property; (d) failure to
                deliver any insurance or condemnation proceeds or awards or any
                security deposits received by Borrower to Lender as required
                under the terms of the Loan Documents or any other instrument
                now or hereafter securing this Note or to otherwise apply such
                sums as required under the terms of the Loan Documents or any
                other instrument now or hereafter securing this Note; (e)
                failure to apply any rents, royalties, accounts, revenues,
                income, issues, profits and other benefits from the Property
                which are collected or received by Borrower during the period of
                any Default or after acceleration of the indebtedness and other
                sums owing under the Loan Documents to the payment of either (i)
                such indebtedness or other sums or (ii) the normal and necessary
                operating expenses of the Property; (f) any breach by Borrower
                of any covenant in this Note or in the Leasehold Deed of Trust
                regarding Hazardous Materials (as defined in the Leasehold Deed
                of Trust) or any representation or warranty of Borrower
                regarding Hazardous Materials proving to have been untrue when
                made; or (g) failure of any of the Date Palm Ground Lease
                Documents (as hereinafter defined) required to be executed by
                the ground lessors in connection with this Loan to be legally
                binding on all of the ground lessors under the ground lease
                encumbering the Property.

        8.3     NO RELEASE OR IMPAIRMENT. Nothing contained in Section 8.1 shall
                be deemed to release, affect or impair the indebtedness
                evidenced by this Note or the obligations of Borrower under, or
                the liens and security interests created by the Loan Documents,
                or Lender's rights to enforce its remedies under this Note and
                the other Loan Documents, including, without limitation, the
                right to pursue any remedy for injunctive or other equitable
                relief, or any suit or action in connection with the
                preservation, enforcement or foreclosure of the liens,
                mortgages, deeds of trust, assignments and security interests
                which are now or at any time hereafter security for the payment
                and performance of all obligations under this Note or the other
                Loan Documents.

        8.4     PREVAIL AND CONTROL. The provisions of this Section 8 shall
                prevail and control over any contrary provisions elsewhere in
                this Note or the other Loan Documents.

9.      NON-TRUSTOR BORROWER. If any Borrower is not also a "Trustor" under the
        Leasehold Deed of Trust, such Borrower hereby makes all representations
        and warranties in favor of Lender contained in Article 5 of the
        Leasehold Deed of Trust, all covenants contained in Section 6.15 of the
        Leasehold Deed of Trust, and all indemnities of Lender contained in
        Section 6.19 of the Leasehold Deed of Trust, jointly and severally with
        "Trustor".

                                       3
<PAGE>   4
10.     MISCELLANEOUS.

        10.1    JOINT AND SEVERAL LIABILITY. If this Note is executed by more
                than one person or entity as Borrower, the obligations of each
                such person or entity shall be joint and several. No person or
                entity shall be a mere accommodation maker, but each shall be
                primarily and directly liable hereunder.

        10.2    WAIVER OF PRESENTMENT. Except as otherwise provided herein or in
                any other Loan Document, Borrower hereby waives presentment,
                demand, notice of dishonor, notice of default or delinquency,
                notice of acceleration, notice of nonpayment, notice of costs,
                expenses or losses and interest thereon, and notice of interest
                on interest and late charges.

        10.3    DELAY IN ENFORCEMENT. No previous waiver or failure or delay by
                Lender in acting with respect to the terms of this Note or the
                Leasehold Deed of Trust shall constitute a waiver of any breach,
                default or failure of condition under this Note, the Leasehold
                Deed of Trust or the obligations secured thereby. A waiver of
                any term of this Note, the Leasehold Deed of Trust or of any of
                the obligations secured thereby must be made in writing signed
                by Lender, shall be limited to the express terms of such waiver,
                and shall not constitute a waiver of any subsequent obligation
                of Borrower. The acceptance at any time by Lender of any
                past-due amount shall not be deemed to be a waiver of the right
                to require prompt payment when due of any other amounts then or
                thereafter due and payable.

        10.4    TIME OF THE ESSENCE. Time is of the essence with respect to
                every provision hereof.

        10.5    GOVERNING LAW. This Note was accepted by Lender in the state of
                California and the proceeds of this Note were disbursed from the
                state of California, which state the parties agree has a
                substantial relationship to the parties and to the underlying
                transaction embodied hereby. Accordingly, in all respects,
                including, without limiting the generality of the foregoing,
                matters of construction, validity, enforceability and
                performance, this Note, the Leasehold Deed of Trust and the
                other Loan Documents and the obligations arising hereunder and
                thereunder shall be governed by, and construed in accordance
                with, the laws of the state of California applicable to
                contracts made and performed in such state and any applicable
                law of the United States of America, except that at all times
                the provisions for the enforcement of Lender's STATUTORY POWER
                OF SALE granted under the Leasehold Deed of Trust securing this
                Note and the creation, perfection and enforcement of the
                security interests created pursuant thereto and pursuant to the
                other Loan Documents shall be governed by and construed
                according to the law of the state where the Property is located.
                Except as provided in the immediately preceding sentence,
                Borrower hereby unconditionally and irrevocably waives, to the
                fullest extent permitted by law, any claim to assert that the
                law of any jurisdiction other than California governs the
                Leasehold Deed of Trust, this Note and the other Loan Documents.

        10.6    CONSENT TO JURISDICTION. Borrower irrevocably submits to the
                jurisdiction of: (a) any state or federal court sitting in the
                state of California over any suit, action, or proceeding,
                brought by Borrower against Lender, arising out of or relating
                to this Note or the Loan evidenced hereby; (b) any state or
                federal court sitting in the state where the Property is located
                or the state in which Borrower's principal place of business is
                located over any suit, action or proceeding, brought by Lender
                against Borrower, arising out of or relating to this Note or the
                Loan evidenced hereby; and (c) any state court sitting in the
                county of the state where the Property is located over any suit,
                action, or proceeding, brought by Lender to exercise its
                STATUTORY POWER OF SALE under the Leasehold of Deed of Trust or
                any action brought by the Lender to enforce its rights with
                respect to the Collateral. Borrower irrevocably waives, to the
                fullest extent permitted by law, any objection that Borrower may
                now or hereafter have to the laying of venue of any such suit,
                action, or proceeding brought in any such court and any claim
                that any such suit, action, or proceeding brought in any such
                court has been brought in an inconvenient forum.

        10.7    COUNTERPARTS. This Note may be executed in any number of
                counterparts, each of which when executed and delivered shall be
                deemed an original and all of which taken together shall be
                deemed to be one and the same Note.

        10.8    HEIRS, SUCCESSORS AND ASSIGNS. All of the terms, covenants,
                conditions and indemnities contained in this Note and the other
                Loan Documents shall be binding upon the heirs, successors and
                assigns of Borrower and shall inure to the benefit of the
                successors and assigns of Lender. The foregoing sentence shall
                not be construed to permit Borrower to assign the Loan except as
                otherwise permitted in this Note or the other Loan Documents.

                                       4
<PAGE>   5
        10.9    SEVERABILITY. If any term of this Note, or the application
                thereof to any person or circumstances, shall, to any extent, be
                invalid or unenforceable, the remainder of this Note, or the
                application of such term to persons or circumstances other than
                those as to which it is invalid or unenforceable, shall not be
                affected thereby, and each term of this Note shall be valid and
                enforceable to the fullest extent permitted by law.

        10.10   CONSENTS, APPROVALS AND EXPENSES. Wherever Lender's consent,
                approval, acceptance or satisfaction is required under any
                provision of this Note or any of the other Loan Documents, such
                consent, approval, acceptance or satisfaction shall not be
                unreasonably withheld, conditioned or delayed by Lender unless
                such provision expressly so provides. Wherever costs or expenses
                are required to be paid under any provision of this Note or any
                of the other Loan Documents, such costs or expenses shall be
                reasonable.

11.     NOTICES. All requests, demands, notices and other communications that
        are required or permitted to be given to a party under this Note shall
        be in writing and shall be sent to such party, either by personal
        delivery, by overnight delivery service, by certified first class mail,
        return receipt requested, or by facsimile transmission to the address or
        facsimile number below. All such notices and communications shall be
        effective upon receipt of such delivery or facsimile transmission,
        together with a printed receipt of the successful delivery of such
        facsimile transmission. The addresses and facsimile numbers of the
        parties shall be:

<TABLE>
<S>                                                 <C>
        Borrower:                                   Lender:
        c/o Manufactured Home Communities, Inc.     Wells Fargo Bank, N.A.
        Two North Riverside Plaza                   1320 Willow Pass Road, Suite 205
        Suite 800                                   Concord, CA  94520
        Chicago, Illinois 60606                     Loan No. 31-0900195R
        Attention:  General Counsel                 FAX No.: (925) 691-5947
        FAX No.:  (312) 279-1715

        With a copy to:

        Katz Randall Weinberg & Richmond
        333 West Wacker Drive
        Suite 1800
        Chicago, IL  60606-1288
        Attention:  Benjamin J. Randall
        FAX No.:  (312) 807-3903
</TABLE>

12.     ADDITIONAL TERMS AND CONDITIONS. The additional terms and conditions set
        forth in Exhibit A and Exhibit B attached hereto are incorporated herein
        by this reference.

13.     PREPAYMENT. Borrower acknowledges that any prepayment of this Note will
        cause Lender to lose its interest rate yield on this Note and will
        possibly require that Lender reinvest any such prepayment amount in
        loans of a lesser interest rate yield (including, without limitation, in
        debt obligations other than first mortgage loans on commercial
        properties). As a consequence, Borrower agrees as follows, as an
        integral part of the consideration for Lender's making the Loan:

        13.1    RESTRICTIONS. Any voluntary prepayment of this Note: (a) is
                prohibited except during the last 3 months of the term, (b) is
                permitted in full only, and not in part, and (c) may only be
                made on the first day of a month.

        13.2    PREPAYMENT CHARGE. Except as provided below, if this Note is
                prepaid prior to the last three (3) months of the term, whether
                such prepayment is involuntary or upon acceleration of the
                principal amount of this Note by Lender following a Default,
                Borrower shall pay to Lender on the prepayment date (in addition
                to all other sums then due and owing to Lender under the Loan
                Documents) a prepayment charge equal to the greater of the
                following two amounts: (a) an amount equal to 1% of the then
                outstanding principal balance of the Loan; or (b) an amount
                equal to (i) the amount, if any, by which the sum of the present
                values as of the prepayment date of all unpaid principal and
                interest payments required under this Note, calculated by
                discounting such

                                       5
<PAGE>   6
                payments from their respective scheduled payment dates back to
                the prepayment date at a discount rate equal to the Periodic
                Treasury Yield (defined below) exceeds the outstanding principal
                balance of the Loan as of the prepayment date, multiplied by
                (ii) a fraction whose numerator is the amount of the prepayment
                and whose denominator is the outstanding principal balance of
                the Loan as of the prepayment date. Notwithstanding the
                foregoing, no prepayment charge shall apply in respect to any
                insurance or condemnation proceeds received by Lender and
                applied by Lender to the outstanding principal balance of the
                Loan. For purposes of the foregoing, "Periodic Treasury Yield"
                means (c) the annual yield to maturity of the actively traded
                non-callable United States Treasury fixed interest rate security
                (other than any such security which can be surrendered at the
                option of the holder at face value in payment of federal estate
                tax or which was issued at a substantial discount) that has a
                maturity closest to (whether before, on or after) the Maturity
                Date (or if two or more such securities have maturity dates
                equally close to the Maturity Date, the average annual yield to
                maturity of all such securities), as reported in The Wall Street
                Journal or other authoritative publication or news retrieval
                service on the fifth Business Day preceding the prepayment date,
                divided by (d) 12, if scheduled payment dates are monthly, or 4,
                if scheduled payment dates are quarterly.

        13.3    WAIVER. Borrower waives any right to prepay this Note except
                under the terms and conditions set forth in this Section and
                agrees that if this Note is prepaid, Borrower will pay the
                prepayment charge set forth above. Borrower hereby acknowledges
                that: (a) the inclusion of this waiver of prepayment rights and
                agreement to pay the prepayment charge for the right to prepay
                this Note was separately negotiated with Lender; (b) the
                economic value of the various elements of this waiver and
                agreement was discussed; (c) the consideration given by Borrower
                for the Loan was adjusted to reflect the specific waiver and
                agreement negotiated between Borrower and Lender and contained
                herein; and (d) this waiver is intended to comply with
                California Civil Code Section 2954.10.

                                                   Borrower's Initials: ________

        13.4    INSURANCE PROCEEDS; CONDEMNATION AWARDS. Notwithstanding
                anything herein to the contrary, no prepayment charge shall be
                due and owing with respect to any involuntary prepayment
                resulting from Lender's application of any insurance proceeds or
                condemnation awards to the Loan.

14.     DEFEASANCE. At any time after the Lockout Expiration Date (defined
        below), Borrower may elect to cause Lender to release the Property from
        the lien of the Leasehold Deed of Trust and the other Loan Documents and
        to accept other collateral in substitution therefor, in accordance with
        the provisions of this Section ("Defeasance"), at Borrower's sole cost
        and expense. "Lockout Expiration Date" means the earlier of (a) the
        second anniversary of the "startup day" (as defined in Internal Revenue
        Code Section 860(G)(a)(9)) of any "real estate mortgage investment
        conduit" (as defined in Internal Revenue Code Section 860D) that holds
        this Note and (b) the third anniversary of the date of this Note.

        14.1    CONDITIONS. Borrower shall only have the right to cause a
                Defeasance if no Default has occurred and is continuing and all
                of the following conditions have been satisfied:

                a.      Notice. Borrower shall give at least 60 days but not
                        more than 90 days' written notice to Lender specifying
                        the date of Borrower's intended Defeasance ("Release
                        Date"), which date shall be a scheduled payment date and
                        such notice shall indicate the principal amount of the
                        Note to be defeased;

                b.      Payments. Borrower shall pay in full, on or before the
                        Release Date, all accrued and unpaid interest and all
                        other sums due under this Note and the other Loan
                        Documents on or before the Release Date, including
                        without limitation, (i) all costs and expenses paid or
                        incurred by Lender or its agents in connection with the
                        Defeasance, the purchase of the Defeasance Collateral
                        (defined below), the release of the Property, the review
                        of the proposed Defeasance Collateral and the
                        preparation of the Defeasance Security Agreement
                        (defined below) and related documentation, and (ii) any
                        revenue, documentary stamp, intangible or other taxes,
                        charges or fees due in connection with the transfer or
                        assumption of this Note or the Defeasance;

                c.      Deliveries. Borrower shall deliver the following items
                        to Lender on or before the Release Date:

                        (i)     immediately available funds ("Defeasance
                                Deposit") in an amount sufficient to enable
                                Lender to purchase, through means and sources
                                customarily employed and available to Lender,
                                for the

                                       6
<PAGE>   7
                                account of Borrower, direct, non-callable
                                obligations of the United States of America that
                                provide for payments prior, but as close as
                                possible, to all successive scheduled payment
                                dates occurring after the Release Date, with
                                each such payment being equal to or greater than
                                the amount of the corresponding installment of
                                principal and interest required to be paid under
                                this Note (including, without limitation, all
                                amounts due on the Maturity Date) for the
                                balance of the term hereof ("Defeasance
                                Collateral"), each of which shall be duly
                                endorsed by the holder as directed by Lender or
                                accompanied by a written instrument of transfer
                                in form and substance satisfactory to Lender in
                                its sole discretion (including, without
                                limitation, such instruments as may be required
                                by the depository institution holding such
                                securities or the issuer of such securities, as
                                the case may be, to effectuate book-entry
                                transfers and pledges through the book-entry
                                facilities of such institution) in order to
                                perfect upon the delivery of the Defeasance
                                Security Agreement (as defined below) the first
                                priority security interest in the Defeasance
                                Collateral in favor of Lender.

                        (ii)    a pledge and security agreement, in form and
                                substance satisfactory to Lender in its
                                reasonable discretion, creating a first priority
                                security interest in favor of Lender in the
                                Defeasance Collateral ("Defeasance Security
                                Agreement"), which shall provide, among other
                                things, that any payments generated by the
                                Defeasance Collateral shall be paid directly to
                                Lender and applied by Lender to amounts then due
                                and payable under this Note and that any excess
                                received by Lender from the Defeasance
                                Collateral over the amounts payable by Borrower
                                under this Note shall be first, paid to Lender
                                and applied by Lender to any other amounts then
                                due and payable under this Note, and second,
                                refunded to Borrower promptly after each
                                scheduled payment date;

                        (iii)   a certificate of Borrower certifying that all of
                                the requirements of this Section 14.1 have been
                                satisfied;

                        (iv)    an opinion of counsel for Borrower in form and
                                substance and delivered by counsel satisfactory
                                to Lender in its sole discretion, subject,
                                however, to standard enforceability opinion
                                qualifications and limitations, stating, among
                                other things, that (aa) Lender has a perfected
                                first priority security interest in the
                                Defeasance Collateral, (bb) the Defeasance
                                Security Agreement is enforceable against
                                Borrower in accordance with its terms and (cc)
                                any REMIC Trust formed pursuant to a
                                securitization will not fail to maintain its
                                status as a "real estate mortgage investment
                                conduit" within the meaning of Internal Revenue
                                Code Section 860D, as amended from time to time,
                                or any successor statute, as a result of the
                                Defeasance;

                        (v)     a certificate from a firm of independent
                                certified public accountants acceptable to
                                Lender certifying that the Defeasance Collateral
                                satisfies the requirements of Section 14.1c(i);

                        (vi)    written evidence from the applicable Rating
                                Agencies that the Defeasance will not result in
                                a downgrading, withdrawal or qualification of
                                the respective ratings in effect immediately
                                prior to the Defeasance for any securities
                                issued in connection with the securitization
                                which are then outstanding;

                        (vii)   such other certificates, documents or
                                instruments as Lender may reasonably require,
                                including, without limitation, such amendments
                                to this Note and the other Loan Documents as
                                Lender reasonably deems appropriate to reflect
                                the Defeasance.

        14.2    RELEASE OF LIEN. Upon satisfaction of all conditions specified
                above with respect to the Defeasance, the Property shall be
                released from the lien of the Leasehold Deed of Trust and the
                other Loan Documents to which it is subject, and the Defeasance
                Collateral and the proceeds thereof shall constitute the only
                collateral which shall secure the obligations of Borrower under
                this Note and the other Loan Documents. Simultaneously with the
                release of the Property pursuant to this Section, Lender shall
                release that portion of all cash or other accounts maintained
                pursuant to the Loan Documents relating to the Property. Lender
                shall, at Borrower's expense, execute and deliver any agreements
                reasonably requested by Borrower to release the lien of the
                Leasehold Deed of Trust from the Property.

                                       7
<PAGE>   8
        14.3    DEFEASANCE DEPOSIT. Borrower hereby authorizes and directs
                Lender, using the means and sources customarily employed and
                available to Lender, to use the Defeasance Deposit to purchase
                the Defeasance Collateral as agent and for the account of
                Borrower. Payments from the Defeasance Collateral shall be made
                directly to Lender for application to the Loan as provided
                hereinabove. Any part of the Defeasance Deposit exceeding the
                amount necessary to purchase the Defeasance Collateral and to
                pay the other costs which Borrower is obligated to pay under
                this Section 14 shall be refunded to Borrower. Borrower agrees
                to pay all sums referred to in Section 14.1b above on or before
                the Release Date.

        14.4    ASSIGNMENT AND ASSUMPTION. Upon the release of the Property in
                accordance with this Section 14, Borrower shall, at the request
                of Lender, assign all of its right, title and interest in and to
                the pledged Defeasance Collateral and all its obligations and
                rights under this Note, the Defeasance Security Agreement and
                the other Loan Documents, to a successor entity designated by
                Borrower and approved by Lender in its sole discretion. Such
                successor entity shall execute an assumption agreement in form
                and substance satisfactory to Lender in its sole discretion
                pursuant to which it shall assume Borrower's obligations under
                this Note, the Defeasance Security Agreement and the other Loan
                Documents. As conditions to such assignment and assumption,
                Borrower shall: (a) deliver to Lender a new limited guaranty in
                form and substance satisfactory to Lender in its sole discretion
                executed by the principals of such successor entity; (b) deliver
                to Lender an opinion of counsel in form and substance and
                delivered by counsel satisfactory to Lender in its sole
                discretion subject, however, to standard enforceability opinion
                qualifications and limitations, stating, among other things,
                that such assumption agreement is enforceable against Borrower
                and such successor entity in accordance with its terms and that
                this Note, the Defeasance Security Agreement and the other Loan
                Documents, as so assumed, are enforceable against such successor
                entity in accordance with their respective terms; and (c) pay
                all costs and expenses incurred by Lender or its agents in
                connection with such assignment and assumption (including,
                without limitation, the review of the proposed transferee and
                the preparation of the assumption agreement and related
                documentation). Upon such assumption, Borrower shall be relieved
                of its obligations under this Note, the Defeasance Security
                Agreement and the other Loan Documents other than those
                obligations which are specifically intended to survive the
                payment of the Loan or other termination, satisfaction or
                assignment of this Note, the Defeasance Security Agreement or
                the other Loan Documents or Lender's exercise of its rights and
                remedies under any of such documents and instruments.

15.     WAIVER OF JURY TRIAL. LENDER AND BORROWER HEREBY KNOWINGLY, VOLUNTARILY
        AND INTENTIONALLY WAIVE ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN
        RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN
        CONNECTION WITH, THIS NOTE OR ANY OTHER LOAN DOCUMENT, OR ANY COURSE OF
        CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN), OR
        ACTIONS OF LENDER OR BORROWER. THIS PROVISION IS A MATERIAL INDUCEMENT
        FOR LENDER TO MAKE THE LOAN TO BORROWER. BY ACCEPTANCE OF THIS EXECUTED
        NOTE, LENDER AGREES TO THE FOREGOING WAIVER.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       8
<PAGE>   9
"BORROWER"

MHC DATE PALM, L.L.C.,
a Delaware limited liability company

By:  MHC-QRS DATE PALM, INC.,
     a  Delaware corporation, its Managing Member

     By: /s/ John Zoeller
        ------------------------------------
     Name: John Zoeller
          ----------------------------------
     Its:  Vice President
         -----------------------------------

                                       9
<PAGE>   10
                                                            Loan No. 31-0900195R

                          EXHIBIT A TO PROMISSORY NOTE
                         ADDITIONAL TERMS AND CONDITIONS

This Exhibit A is attached to and forms a part of that Promissory Note Secured
by Leasehold Deed of Trust ("Note") executed by MHC DATE PALM, L.L.C., a
Delaware limited liability company ("Borrower") in favor of WELLS FARGO BANK,
NATIONAL ASSOCIATION ("Lender").

1.      DISBURSEMENT OF LOAN PROCEEDS; LIMITATION OF LIABILITY. Borrower hereby
        authorizes Lender to disburse the proceeds of the Loan, after deducting
        any and all fees owed by Borrower to Lender in connection with the Loan,
        to Commonwealth Land Title Insurance Company (the "Title Company"). With
        respect to such disbursement, Borrower understands and agrees that
        Lender does not accept responsibility for errors, acts or omissions of
        others, including, without limitation, the escrow company, other banks,
        communications carriers or clearinghouses through which the transfer of
        Loan proceeds may be made or through which Lender receives or transmits
        information, and no such entity shall be deemed Lender's agent. As a
        consequence, Lender shall not be liable to Borrower for any actual
        (whether direct or indirect), consequential or punitive damages which
        may arise with respect to the disbursement of Loan proceeds, whether or
        not (a) any claim for such damages is based on tort or contract, or (b)
        either Lender or Borrower knew or should have known of the likelihood of
        such damages in any situation.

2.      FINANCIAL STATEMENTS.

        2.1     STATEMENTS REQUIRED. During the term of the Loan and while any
                liabilities of Borrower to Lender under any of the Loan
                Documents remain outstanding and unless Lender otherwise
                consents in writing, Borrower shall provide to Lender the
                following:

                a.      OPERATING STATEMENT. Not later than 10 days after and as
                        of each calendar month during the first 6 months of the
                        term of the Loan, and thereafter not later than 30 days
                        after and as of the end of each calendar quarter, an
                        operating statement, signed and dated by Borrower and in
                        a form acceptable to Lender, showing all revenues and
                        expenses during such month or quarter and year-to-date,
                        relating to the Property, including, without limitation,
                        all information requested under any of the Loan
                        Documents;

                b.      RENT ROLL. Not later than 10 days after and as of each
                        calendar month during the first 6 months of the term of
                        the Loan, and thereafter not later than 30 days after
                        and as of the end of each calendar quarter, a rent roll
                        signed and dated by Borrower and in a form acceptable to
                        Lender, showing the following lease information with
                        regard to each tenant: the name of the tenant, monthly
                        or other periodic rental amount, date of commencement of
                        the lease, and payment status;

                c.      BALANCE SHEET. If requested by Lender, not later than 90
                        days after and as of the end of each fiscal year, a
                        balance sheet, signed and dated by Borrower and in a
                        form acceptable to Lender (or audited financial
                        statements if Borrower obtains them), showing all assets
                        and liabilities of Borrower; and

                d.      OTHER INFORMATION. From time to time, upon Lender's
                        delivery to Borrower of at least 10 days' prior written
                        notice, such other information with regard to Borrower,
                        principals of Borrower, guarantors or the Property as
                        Lender may reasonably request in writing.

        2.2     FORM; WARRANTY. Borrower agrees that all financial statements to
                be delivered to Lender pursuant to Section 2.1 shall: (a) be
                complete and correct in all material respects; (b) present
                fairly the financial condition of the party; (c) disclose all
                liabilities that are required to be reflected or reserved
                against; and (d) be prepared in accordance with the same
                accounting standard used by Borrower to prepare the financial
                statements delivered to and approved by Lender in connection
                with the making of the Loan or other accounting standards
                acceptable to Lender. Borrower shall be deemed to warrant and
                represent that, as of the date of delivery of any such financial
                statement, there has been no material adverse change in
                financial condition, nor have any assets or properties been
                sold, transferred, assigned, mortgaged, pledged or encumbered
                since the date of such financial statement except as disclosed
                by Borrower in a writing delivered to Lender. Borrower agrees
                that all

                                   EXHIBIT A
                                        1
<PAGE>   11
                rent rolls and other information to be delivered to Lender
                pursuant to Section 2.1 shall not contain any misrepresentation
                or omission of a material fact.

        2.3     LATE CHARGE. If any financial statement, leasing schedule or
                other item required to be delivered to Lender pursuant to
                Section 2.1 is not timely delivered, Borrower shall promptly pay
                to Lender, as a late charge, the sum of $500 per item. In
                addition, Borrower shall promptly pay to Lender an additional
                late charge of $500 per item for each full month during which
                such item remains undelivered following written notice from
                Lender. Borrower acknowledges that Lender will incur additional
                expenses as a result of any such late deliveries, which expenses
                would be impracticable to quantify, and that Borrower's payments
                under this Section 2.3 are a reasonable estimate of such
                expenses. Notwithstanding anything to the contrary contained
                herein, once during each year of the term of the Loan Lender
                will give notice to Borrower of its failure to provide any item
                required to be delivered to Lender pursuant to Section 2.1 and
                if any such items are not delivered within three (3) Business
                Days following such notice, then at such time the late charge
                specified herein shall take effect.

3.      IMPOUNDS.

        3.1     AMOUNTS. Borrower shall deposit with Lender the amounts
                ("Impounds") stated below on the dates stated below, for the
                purpose of paying the costs stated below:

                a.      TAXES. on the first payment date on which both principal
                        and interest under the Loan are payable and on each
                        payment date thereafter, an amount estimated from time
                        to time by Lender in its reasonable discretion to be
                        sufficient to pay for taxes and other liabilities
                        payable by Borrower under Section 6.9 of the Leasehold
                        Deed of Trust. The initial estimated monthly amount to
                        be deposited by Borrower on each payment date is
                        $24,865.00.

                b.      INSURANCE. on the first payment date on which both
                        principal and interest under the Loan are payable and on
                        each payment date thereafter, an amount estimated from
                        time to time by Lender in its reasonable discretion to
                        be sufficient to pay for premiums for insurance payable
                        by Borrower under Section 6.10 of the Leasehold Deed of
                        Trust. The initial estimated monthly amount to be
                        deposited by Borrower on each payment date is $833.00.

                c.      INTENTIONALLY DELETED.

                d.      CAPITAL EXPENDITURES. $2,241.67 on the first payment
                        date on which both principal and interest under the Loan
                        are payable and on each payment date thereafter for
                        payment or reimbursement of Capital Expenditures
                        (defined below). Notwithstanding the foregoing, once
                        $80,700.00 is held in this account (the "Capped
                        Amount"), Borrower may temporarily cease making payments
                        to this account; provided, however, that upon a release
                        of Impounds from this account causing the amount held in
                        such account to drop beneath the Capped Amount, Borrower
                        must immediately resume payments on each payment date
                        until such time as the Capped Amount has been reached.

3.2     APPLICATION.

        a.      TAXES. If no Default exists, Lender shall apply the Impounds in
                a timely fashion to the payment of the taxes and other
                liabilities stated above.

        b.      INSURANCE. If no Default exists, Lender shall apply the Impounds
                to the payment of the insurance premiums stated above.

        c.      INTENTIONALLY DELETED.

        d.      CAPITAL EXPENDITURES. If no Default exists, Lender shall release
                the Impounds to Borrower once a quarter, no less than $50,000.00
                per release, to pay or reimburse Borrower for the Capital
                Expenditures (defined below); provided, however, that Lender
                shall have received and approved each of the following:

                                   EXHIBIT A
                                       2
<PAGE>   12
                (i)     Borrower's written request for such release, describing
                        the Capital Expenditures and certifying that all Capital
                        Expenditures have been paid or incurred by Borrower for
                        work completed lien-free and in a workmanlike manner;

                (ii)    copies of invoices supporting the request for such
                        release; and

                (iii)   if deemed necessary by Lender, an inspection report
                        signed by an inspector selected by Lender, whose fees
                        and expenses shall be paid by Borrower, and such other
                        evidence as Lender shall reasonably require, confirming
                        borrower's certification.

        3.3     GENERAL. Any portion of the Impounds that exceeds the amount
                required for payment of the foregoing costs shall be repaid to
                Borrower upon Borrower's compliance with the foregoing.
                Reference is made to Section 6.12(b) of the Leasehold Deed of
                Trust for a description of the account into which the Impounds
                shall be deposited and for a description of certain rights and
                remedies of Lender with respect to amounts in such account.

        3.4     MAINTENANCE AND CONSTRUCTION.

                a.      INTENTIONALLY DELETED.

                b.      CAPITAL EXPENDITURES. Borrower shall complete the
                        lien-free performance or installation of the Capital
                        Expenditures (as defined below) from time to time as
                        necessary, in a workmanlike manner and in accordance
                        with all applicable laws, ordinances, rules and
                        regulations. "Capital Expenditures" shall mean major
                        repairs and replacements to maintain or improve the
                        Property, including, without limitation, structural
                        repairs, roof replacements, HVAC repairs and
                        replacements, mechanical and plumbing repairs and
                        replacements and boiler repair and replacements.

                c.      RIGHT OF INSPECTION. Lender shall have the right to
                        enter upon the Property at all reasonable times, subject
                        to reasonable notice except in the event of an
                        emergency, in which case no notice shall be required, to
                        inspect all work for the purpose of verifying
                        information disclosed or required pursuant to this Note,
                        in a manner which does not unreasonably interfere with
                        the operations on the Property. Notwithstanding the
                        foregoing, Lender shall not be obligated to supervise or
                        inspect any work or to inform Borrower or any third
                        party regarding any aspect of any work.

        3.5     RELEASE. Lender shall release any Impounds to Borrower through a
                funds transfer of such Impounds initiated by Lender to the
                following account or such other account as Borrower specifies in
                a notice to Lender:

                         Bank Name:  Bank of America
                   ABA Routing No.:  071-000039
                      Account Name:  7366-9-01095
                         Reference:  MHC Operating Limited Partnership
                            Advise:  Megan McBride (312) 828-6274

                Lender will determine the funds transfer system and other means
                to be used in making each such release. Borrower agrees that
                each such funds transfer initiated by Lender will be deemed to
                be a funds transfer properly authorized by Borrower, even if the
                transfer is not actually properly authorized by Borrower.
                Borrower acknowledges that Lender will rely on the account
                number and ABA routing number set forth above or specified in a
                notice from Borrower to Lender, even if such account number
                identifies an account with a name different from the name so
                specified, or the routing number identifies a bank different
                from the bank so specified. If Borrower learns of any error in
                the transfer of any Impounds or of any transfer which was not
                properly authorized, Borrower shall notify Lender as soon as
                possible in writing but in no case more than 14 days after
                Lender's first confirmation to Borrower of such transfer.

4.      ONE-TIME RIGHT OF TRANSFER OF PROPERTY TO THIRD PARTY. Notwithstanding
        anything to the contrary contained in Section 6.15 of the Leasehold Deed
        of Trust, Lender shall, one time only, consent to the voluntary sale or
        exchange of the Property by assignment of lease to a bona-fide third
        party purchaser ("Transfer"), if

                                   EXHIBIT A
                                       3
<PAGE>   13
        no Default has occurred and is continuing, no event has occurred which,
        with the giving of notice or the passage of time, or both, would
        constitute a Default and all of the following conditions have been
        satisfied:

        4.1     Lender receives at least sixty-five (65) days prior written
                notice of the proposed Transfer;

        4.2     Lender's reasonable determination that the proposed purchaser,
                the proposed guarantor, if any, and the Property all satisfy
                Lender's then applicable credit review and underwriting
                standards, taking into consideration, among other things, (a)
                any decrease in the Property's cash flow which would result from
                any increase in real property taxes due to any anticipated
                reassessment of the Properties for tax purposes and (b) any then
                applicable requirement of Lender that such proposed borrowing
                entity constitute a single purpose asset and bankruptcy remote
                entity which, at the time of the Transfer, shall be in full
                compliance with the representations and covenants set forth in
                Section 5.2 of the Leasehold Deed of Trust (as such
                representations may be reasonably modified by Lender after
                reviewing the ownership structure of the proposed borrowing
                entity);

        4.3     if required by Lender, delivery to Lender of a non-consolidation
                opinion from a law firm reasonably acceptable to Lender and in
                form and substance reasonably satisfactory to Lender;

        4.4     Lender's reasonable determination that the proposed purchaser
                possesses satisfactory recent experience in the ownership and
                operation of properties comparable to the Property;

        4.5     the execution and delivery to Lender of such documents and
                instruments as Lender shall reasonably require, in form and
                content reasonably satisfactory to Lender, including, without
                limitation, (i) an assumption agreement under which the
                purchaser assumes all obligations and liabilities of Borrower
                under this Note and the other Loan Documents and agrees to
                periodically pay such new or additional Impounds to Lender as
                Lender may reasonably require, and (ii) a consent to the
                Transfer by any existing guarantor and a reaffirmation of such
                guarantor's obligations and liabilities under any guaranty made
                in connection with the Loan or a new guaranty executed by a new
                guarantor reasonably satisfactory to Lender;

        4.6     if required by Lender, delivery to Lender of evidence of title
                insurance reasonably satisfactory to Lender insuring Lender that
                the lien of the Leasehold Deed of Trust and the priority thereof
                will not be impaired or affected by reason of such Transfer of
                the Property;

        4.7     payment to Lender of an assumption fee equal to 0.5% of the then
                outstanding principal balance of this Note;

        4.8     if reasonably required by Lender, deposit with Lender of any new
                or additional Impounds;

        4.9     reimbursement to Lender of any and all costs and expenses paid
                or incurred by Lender in connection with such Transfer,
                including, without limitation, all in-house or outside counsel
                attorneys' fees, title insurance fees, appraisal fees,
                inspection fees, environmental consultant's fees and any fees or
                charges of the applicable Rating Agencies;

        4.10    if required by Lender, delivery to Lender of written evidence
                from the applicable Rating Agencies that such Transfer will not
                result in a downgrading, withdrawal or qualification of the
                respective ratings in effect immediately prior to the Transfer
                for any securities issued in connection with the securitization
                of the Loan which are then outstanding; and

        4.11    any third party consents or approvals that are required in order
                to consummate the contemplated transaction shall have been
                obtained and Lender shall be provided with satisfactory evidence
                of same.

Lender shall fully release Borrower and any existing guarantor from any further
obligation or liability to Lender under this Note and the other Loan Documents
upon the assumption by the purchaser and any new guarantor of all such
obligations and liabilities and the satisfaction of all other conditions
precedent to a Transfer in accordance with the provisions of this Section.

5.      AFFILIATE TRANSFERS. Notwithstanding anything to the contrary contained
        in Section 6.15 of the Leasehold Deed of Trust and in addition to the
        right contained in Section 4 of Exhibit A to this Note, Lender shall one
        time only with respect to the Property consent to either (a) the
        voluntary transfer of the Property by assignment of lease to an
        Affiliate of Manufactured Home Communities, Inc. ("MHC") or (b) the
        assignment of all or any portion of the membership interests in
        Borrower, except for the one percent (1%) managing membership interest
        held by MHC-QRS

                                   EXHIBIT A
                                       4
<PAGE>   14
        Date Palm, Inc., to an Affiliate of MHC (both of which are referred to
        herein as the "Affiliate Transfer"), if no Default has occurred and is
        continuing, no event has occurred which, with the giving of notice or
        the passage of time, or both, would constitute a Default and all of the
        following conditions have been satisfied:

        5.1     Lender receives at least sixty-five (65) days prior written
                notice of the proposed Affiliate Transfer;

        5.2     Lender's reasonable determination that the proposed purchaser,
                the proposed guarantor, if any, and the Property all satisfy
                Lender's then applicable credit review and underwriting
                standards, taking into consideration, among other things, (a)
                any decrease in the Property's cash flow which would result from
                any increase in real property taxes due to any anticipated
                reassessment of the Property for tax purposes and (b) any then
                applicable requirement of Lender that such proposed borrowing
                entity constitute a single purpose asset and bankruptcy remote
                entity which, at the time of the Affiliate Transfer, shall be in
                full compliance with the representations and covenants set forth
                in Section 5.2 of the Leasehold Deed of Trust (as such
                representations may be reasonably modified by Lender after
                reviewing the ownership structure of the proposed borrowing
                entity);

        5.3     if required by Lender, delivery to Lender of a non-consolidation
                opinion from a law firm reasonably acceptable to Lender and in
                form and substance reasonably satisfactory to Lender;

        5.4     the execution and delivery to Lender of such documents and
                instruments as Lender shall reasonably require, in form and
                content reasonably satisfactory to Lender, including, without
                limitation, (i) an assumption agreement under which the
                purchaser assumes all obligations and liabilities of Borrower
                under this Note and the other Loan Documents and agrees to
                periodically pay such new or additional Impounds to Lender as
                Lender may reasonably require, and (ii) a consent to the
                Affiliate Transfer by any existing guarantor and a reaffirmation
                of such guarantor's obligations and liabilities under any
                guaranty made in connection with the Loan or a new guaranty
                executed by a new guarantor reasonably satisfactory to Lender;

        5.5     if required by Lender, delivery to Lender of evidence of title
                insurance reasonably satisfactory to Lender insuring Lender that
                the lien of such Leasehold Deed of Trust and the priority
                thereof will not be impaired or affected by reason of the
                Affiliate Transfer;

        5.6     reimbursement to Lender of any and all costs and expenses paid
                or incurred by Lender in connection with such Affiliate
                Transfer, including, without limitation, all in-house or outside
                counsel attorneys' fees, title insurance fees, appraisal fees,
                inspection fees, environmental consultant's fees and any fees or
                charges of the applicable Rating Agencies;

        5.7     if required by Lender, delivery to Lender of written evidence
                from the applicable Rating Agencies that such Affiliate Transfer
                will not result in a downgrading, withdrawal or qualification of
                the respective ratings in effect immediately prior to the
                Affiliate Transfer for any securities issued in connection with
                the securitization of the Loan which are then outstanding; and

        5.8     any third party consents or approvals that are required in order
                to consummate the contemplated transaction shall have been
                obtained and Lender shall be provided with satisfactory evidence
                of same.

If the Affiliate Transfer consists of an assignment of lease to an Affiliate of
MHC, then Lender shall fully release Borrower from any further obligation or
liability to Lender under this Note and the other Loan Documents upon the
assumption by an Affiliate of MHC of all such obligations and liabilities and
the satisfaction of all other conditions precedent to the Affiliate Transfer in
accordance with the provisions of this Section. In addition to the Affiliate
Transfer permitted above, Lender's consent shall not be required for the normal
day to day trading of shares of MHC in the public securities market and such
transactions shall not constitute a Affiliate Transfer hereunder.

                                   EXHIBIT A
                                       5
<PAGE>   15
                                                            Loan No. 31-0900195R

                          EXHIBIT B TO PROMISSORY NOTE
                   LOAN DOCUMENTS AND OTHER RELATED DOCUMENTS

This Exhibit B is attached to and forms a part of that Promissory Note Secured
by Leasehold Deed of Trust ("Note") executed by MHC DATE PALM, L.L.C., a
Delaware limited liability company ("Borrower") in favor of WELLS FARGO BANK,
NATIONAL ASSOCIATION ("Lender").

1.      LOAN DOCUMENTS. The documents numbered 1.1 through 1.11 below of even
        date herewith (unless otherwise specified) and any amendments,
        modifications and supplements thereto which have received the prior
        written approval of Lender and any documents executed in the future that
        are approved by Lender and that recite that they are "Loan Documents"
        for purposes of this Note are collectively referred to as the "Loan
        Documents".

        1.1     This Note;

        1.2     Leasehold Deed of Trust;

        1.3     State of Illinois Commercial Code - Financing Statement - Form
                UCC-1;

        1.4     State of California Uniform Commercial Code - Financing
                Statement - Form UCC-1;

        1.5     Limited Liability Company Borrowing Certificate;

        1.6     Corporate Resolution Authorizing Limited Liability Company
                Activity and Certificate of Incumbency;

        1.7     Corporate Resolutions Authorizing Execution of Guaranty and
                Certificate of Incumbency;

        1.8     Ground Lease Estoppel Certificate and Agreement ("Estoppel")
                executed by the requisite ground lessors thereunder and approved
                by the Bureau of Indian Affairs ("BIA");

        1.9     Supplemental Agreement No. 5 ("Supplemental Agreement") executed
                by the requisite ground lessors thereunder the approved by the
                BIA;

        1.10    Assignment of Management Contracts and Consent and Subordination
                of Manager; and

        1.11    O&M Plan Letter.

2.      OTHER RELATED DOCUMENTS WHICH ARE NOT LOAN DOCUMENTS.

        2.1     Limited Guaranty;

        2.2     Bankruptcy Non-Consolidation Opinion of Borrower's legal
                counsel;

        2.3     Consent and Approval of the Loan executed by the BIA;

        2.4     Sublease by and between Borrower and LP Management Corp.
                approved by the BIA; and

        2.5     Assignment and Assumption of Business Lease by and between MHC
                Operating Limited Partnership and Community Systems, Inc., as
                assignor, and Borrower, as assignee ("Assignment of Ground
                Lease"), consented to by the requisite ground lessors thereunder
                and approved by the BIA (the Assignment of Ground Lease,
                Supplemental Agreement and Estoppel are referred to collectively
                herein as the "Date Palm Ground Lease Documents").

                                   EXHIBIT B
                                       1

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