SEC Contract Filing

Filing Date: 2015-01-13

Document Content:
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<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>v398641_ex10-3.htm
<DESCRIPTION>EXHIBIT 10.3
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 188pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: right"><B>Exhibit 10.3</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>PROMISSORY</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>NOTE</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(with Incentive</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Participation)</P>

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 <TD STYLE="width: 50%; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$5,000,000.00</FONT></TD>
 <TD STYLE="width: 50%; text-align: right; font-size: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">December 31, 2014</FONT></TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 8.6pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9.8pt; text-align: justify; text-indent: 36.1pt">THIS PROMISSORY
NOTE (this &quot;<U>Note&quot;</U>) is made as of December 31, 2014 by THE RESIDENCES AT SHERBURNE COMMONS, INC., a Massachusetts
c. 180 non-profit corporation] (&quot;Borrower&quot;), having an address at c/o 40 Sherburne Commons, Nantucket, Massachusetts
02554, to and in favor of CORNERSTONE OPERATING PARTNERSHIP, L.P., a Delaware limited partnership its successors and assigns (&quot;<U>Lender&quot;</U>),
having an address at 2 South Pointe Drive, Suite 100, Lake Forest, California 92630.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9.05pt; text-align: justify; text-indent: 35.75pt">NOW, THEREFORE,
FOR VALUE RECEIVED, Borrower, unconditionally promises to pay to the order of Lender, without any counterclaim, setoff or deduction
whatsoever, on or before the Maturity Date (as hereinafter defined), at the office of Lender, or at such other place as Lender
may designate to Borrower in writing from time to time, the principal sum of FIVE MILLION AND N0/100 DOLLARS ($5,000,000.00), together
with (i) interest on so much thereof as is from time to time outstanding and unpaid, from the date of the advance of the principal
evidenced hereby, at the rate of three and one half percent (3.5%) per annum (the &quot;<U>Note Rate&quot;</U>), compounded annually,
and (ii) the Additional Interest (defined below), at such time as is required by the terms hereof, all in lawful money of the United
States of America, which shall at the time of payment be legal tender in payment of all debts and dues, public and private.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 9.05pt; text-align: justify; text-indent: 35.75pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">SECTION 1</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>TERMS AND</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><U>CONDITIONS</U></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 46.5pt">1.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Payment
of Interest.</U> Interest shall be computed hereunder based on a 360-day year and paid for the actual number of days elapsed
for any whole or partial month in which interest is being calculated. In computing the number of days during which interest
accrues, such accrual shall commence on the date hereof, and the day on which funds are repaid shall be included unless
repayment is credited prior to close of business. Payments in federal funds immediately available in the place designated for
payment received by Lender prior to 2:00 p.m. local time on a business day at the place designated for payment shall be
credited prior to close of business, while other payments may, at the option of Lender, not be credited until immediately
available to Lender in federal funds at the place designated for payment prior to 2:00 p.m. local time at said place of
payment on a day on which Lender (or if Lender designates another entity to receive payment on behalf of Lender, such entity)
is open for business.</P>

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