Document:

PROMISSORY NOTE

 

	No. 1	Dated as of: May 27, 2014
	 	New York, New York

 

FOR VALUE RECEIVED, AMERICAN REALTY
CAPITAL HOSPITALITY TRUST, INC. (“Payor”) promises to pay to the order of CARP, LLC (“Payee”), on
the day that is the first (1st) anniversary of the date hereof (the “Maturity Date”), in lawful money of the
United States of America, in immediately available funds and at the office of Payee located c/o American Realty Capital, 405 Park
Avenue, 12th Floor, New York, New York, the aggregate unpaid principal amount of the loan (the “Loan”) in the
amount of Forty-Five Million Dollars ($45,000,000) advanced by Payee to Payor on the date hereof. Payor shall have the right to
extend the Maturity Date to a date that is not later than the second (2nd) anniversary of the date hereof. Payor may prepay all
or any portion of the Loan prior to the Maturity Date, provided that any partial prepayment of the Loan is made in no less than
One Hundred Thousand Dollars ($100,000) increments.

 

The unpaid principal amount of
the Loan from time to time outstanding shall bear interest at the rate of six percent (6%) per annum commencing on July 1, 2014.
Payor hereby waives (to the extent permitted by applicable law) presentment, demand, protest and notice of any kind. No failure
to exercise, and no delay in exercising, any rights hereunder on the part of the holder hereof shall operate as a waiver of such
rights.

 

This Promissory Note shall be binding
upon Payor and its successors and assigns, and the terms and provisions of this Promissory Note shall inure to the benefit of Payee
and its successors and assigns, including subsequent holders hereof. Notwithstanding anything to the contrary contained herein
or in any other promissory note or other instrument, this Promissory Note shall not be deemed replaced, superseded or in any way
modified by any promissory note or other instrument entered into on or after the date hereof which purports to create or evidence
any loan or advance by Payee to any Payor (except any (a) amendments or amendments and restatements of this Promissory Note or
(b) supplements made hereby in accordance with the terms hereof).

 

THIS PROMISSORY NOTE AND THE RIGHTS
AND OBLIGATIONS OF THE PARTIES UNDER THIS PROMISSORY NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH,
THE LAW OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO CONFLICTS OF LAW PRINCIPLES THAT WOULD REQUIRE THE APPLICATION OF THE
LAWS OF ANOTHER JURISDICTION.

 

The terms and provisions of this
Promissory Note are severable, and if any term or provision shall be determined to be superseded, illegal, invalid or otherwise
unenforceable in whole or in part pursuant to applicable laws or other legal requirements by a governmental authority having jurisdiction,
such determination shall not in any manner impair or otherwise affect the validity, legality or enforceability of that term or
provision in any other jurisdiction or any of the remaining terms and provisions of this Promissory Note in any jurisdiction.

 

This Promissory Note may be
executed in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement. Delivery of an executed counterpart of this Promissory Note by telecopy or
other electronic transmission shall be effective as delivery of a manually executed counterpart of this Promissory Note.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, Payor has caused this
Promissory Note to be executed and delivered by its proper and duly authorized officer or authorized signatory, as the case may
be, as of the date set forth below its signature hereto.

 

 

 

PAYOR:

 

American Realty Capital Hospitality Trust, Inc., a

Maryland corporation

 

 

By:      /s/  Jonathan
P. Mehlman                                   

             Name:    Jonathan P. Mehlman

             Title:     Chief Investment Officer

 

Dated as of:  May 27, 2013

  

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2star_ex41.htm

EXHIBIT 14.1

 

Starboard Resources, Inc. Code of Ethics and Business Conduct

 

 

1. Introduction.

 

1.1  The Board of Directors of Starboard Resources, Inc. (together with its subsidiaries, the “Company”) has adopted this Code of Ethics and Business Conduct (the “Code”) in order to:

 

(a) promote honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest;

 

(b) promote full, fair, accurate, timely and understandable disclosure in reports and documents that the Company files with, or submits to, the Securities and Exchange Commission (the “SEC”) and in other public communications made by the Company;

 

(c) promote compliance with applicable governmental laws, rules and regulations;

 

(d) promote the protection of Company assets, including corporate opportunities and confidential information;

 

(e) promote fair dealing practices;

 

(f) deter wrongdoing; and

 

(g) ensure accountability for adherence to the Code.

 

1.2 All directors, officers and employees are required to be familiar with the Code, comply with its provisions and report any suspected violations as described below in Section 6., Reporting and Enforcement.

 

2. Honest and Ethical Conduct.

 

2.1 The Company’s policy is to promote high standards of integrity by conducting its affairs honestly and ethically.

 

2.2 Each director, officer and employee must act with integrity and observe the highest ethical standards of business conduct in his or her dealings with the Company’s customers, suppliers, partners, service providers, competitors, employees and anyone else with whom he or she has contact in the course of performing his or her job.

 

3. Conflicts of Interest.

 

3.1 A conflict of interest occurs when an individual’s private interest (or the interest of a member of his or her family) interferes, or even appears to interfere, with the interests of the Company as a whole.  A conflict of interest can arise when an employee, officer or director (or a member of his or her family) takes actions or has interests that may make it difficult to perform his or her work for the Company objectively and effectively.  Conflicts of interest also arise when an employee, officer or director (or a member of his or her family) receives improper personal benefits as a result of his or her position in the Company.

 

3.2 Loans by the Company to, or guarantees by the Company of obligations of, employees or their family members are of special concern and could constitute improper personal benefits to the recipients of such loans or guarantees, depending on the facts and circumstances.  Loans by the Company to, or guarantees by the Company of obligations of, any director or executive officer are expressly prohibited.

 

3.3 Whether or not a conflict of interest exists or will exist can be unclear. Conflicts of interest should be avoided unless specifically authorized as described in Subsection 3.4.

 

3.4 Persons other than directors and executive officers who have questions about a potential conflict of interest or who become aware of an actual or potential conflict should discuss the matter with, and seek a determination and prior authorization or approval from, their supervisor or the Chief Financial Officer.  A supervisor may not authorize or approve conflict of interest matters or make determinations as to whether a problematic conflict of interest exists without first providing the Chief Financial Officer with a written description of the activity and seeking the Chief Financial Officer’s written approval. If the supervisor is himself involved in the potential or actual conflict, the matter should instead be discussed directly with the Chief Financial Officer.

 

  

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Directors and executive officers must seek determinations and prior authorizations or approvals of potential conflicts of interest exclusively from the Audit Committee.

 

4. Compliance.

 

4.1 Employees, officers and directors should comply, both in letter and spirit, with all applicable laws, rules and regulations in the cities, states and countries in which the Company operates.

 

4.2 Although not all employees, officers and directors are expected to know the details of all applicable laws, rules and regulations, it is important to know enough to determine when to seek advice from appropriate personnel. Questions about compliance should be addressed to the Management.

 

4.3 No director, officer or employee may purchase or sell any Company securities while in possession of material non-public information regarding the Company, nor may any director, officer or employee purchase or sell another company’s securities while in possession of material non-public information regarding that company. It is against Company policies and illegal for any director, officer or employee to use material non-public information regarding the Company or any other company to:

 

(a) obtain profit for himself or herself; or

 

(b) directly or indirectly “tip” others who might make an investment decision on the basis of that information.

 

5. Disclosure.

 

5.1 The Company’s periodic reports and other documents filed with the SEC, including all financial statements and other financial information, must comply with applicable federal securities laws and SEC rules.

 

5.2 Each director, officer and employee who contributes in any way to the preparation or verification of the Company’s financial statements and other financial information must ensure that the Company’s books, records and accounts are accurately maintained. Each director, officer and employee must cooperate fully with the Company’s Accounting and Internal Audit Departments, as well as the Company’s independent public accountants and counsel.

 

5.3 Each director, officer and employee who is involved in the Company’s disclosure process must:

 

(a) be familiar with and comply with the Company’s disclosure controls and procedures and its internal control over financial reporting; and

 

(b) take all necessary steps to ensure that all filings with the SEC and all other public communications about the financial and business condition of the Company provide full, fair, accurate, timely and understandable disclosure.

 

6. Reporting and Enforcement.

 

6.1 Reporting and Investigation of Violations.

 

(a) Actions prohibited by this code involving directors or executive officers must be reported to the Audit Committee.

 

(b) Actions prohibited by this code involving any other person must be reported to the reporting person’s supervisor or the Chief Financial Officer.

 

  

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(c) After receiving a report of an alleged prohibited action, the Audit Committee, the relevant supervisor or the Chief Financial Officer must promptly take all appropriate actions necessary to investigate.

 

(d) All directors, officers and employees are expected to cooperate in any internal investigation of misconduct.

 

6.2 Enforcement.

 

(a) The Company must ensure prompt and consistent action against violations of this Code.

 

(b) If, after investigating a report of an alleged prohibited action by a director or executive officer, the Audit Committee determines that a violation of this Code has occurred, the Audit Committee will report such determination to the Board of Directors.

 

(c) If, after investigating a report of an alleged prohibited action by any other person, the relevant supervisor or the Chief Financial Officer determines that a violation of this Code has occurred, the supervisor or the Chief Financial Officer will report such determination to the Chief Executive Officer.

 

(d) Upon receipt of a determination that there has been a violation of this Code, the Board of Directors or the General Counsel will take such preventative or disciplinary action as it deems appropriate, including, but not limited to, reassignment, demotion, dismissal and, in the event of criminal conduct or other serious violations of the law, notification of appropriate governmental authorities.

 

6.3 Waivers.

 

(a) Each of the Board of Directors (in the case of a violation by a director or executive officer) and the Chief Financial Officer (in the case of a violation by any other person) may, in its discretion, waive any violation of this Code.

 

(b) Any waiver for a director or an executive officer shall be disclosed as required by SEC and NASDAQ rules.

 

6.4 Prohibition on Retaliation.

 

The Company does not tolerate acts of retaliation against any director, officer or employee who makes a good faith report of known or suspected acts of misconduct or other violations of this Code.

 

 

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