Document:

Promissory Note

 EXHIBIT 10.8 
  
 PROMISSORY NOTE 
  

	$1,000,000.00	 	July 24, 2003

  
 FOR VALUE RECEIVED,
SANDALWOOD HOSPITALITY ADVISORS, LLC, a Delaware limited liability company (the “Maker”), promises to pay to the order of BARCELÓ CRESTLINE CORPORATION, a Maryland corporation, or its successors and permitted
assigns (collectively, the “Holder”), at 8405 Greensboro Drive, Suite 500, McLean, Virginia 22102, or at such other place as the Holder of this Note may from time to time designate, the principal amount of ONE MILLION AND 00/100
DOLLARS ($1,000,000.00). This Note is not an interest-bearing note. 
  
 The principal amount of this Note shall be due and payable on December 31, 2005 (the “Maturity Date”); provided however that in the event that Sandalwood Lodging Investment Company, a Maryland corporation (‘SLIC”)
has not by the Maturity Date issued securities generating at least fifty million dollars ($50,000,000) of gross proceeds to SLIC (the “Failed Offering”), the unpaid principal amount of this Note may, at the option of the Maker, be repaid
in whole or part on the Maturity Date through the delivery of common stock of SLIC at a per share conversion price equal to the lesser of (i) the price at which SLIC is then issuing shares of its common stock to the general public, or (ii) $20.00 a
share. Upon such repayment, whether in cash or common stock or a combination thereof, this Note shall be deemed satisfied in its entirety. Except as expressly provided in this paragraph, all payments required hereunder shall be made in lawful money
of the United States of America, without offset and free and clear of any and all other defenses, offsets, claims, counterclaims, credits or deductions of any kind. 
  
 The unpaid principal amount of this Note may be prepaid, in whole or in part, at any time and from time to time without
premium or penalty upon three (3) Business Days’ prior written notice to the Holder; provided, however, that each prepayment must be in a principal amount of at least One Hundred Thousand and 00/100 Dollars ($100,000.00). Each
payment or prepayment made in respect of this Note shall be applied to any principal then due hereunder. Notices of intention to prepay on a specified date shall be irrevocable. No prepayment shall entitle any person to be subrogated to the rights
of the Holder unless and until this Note has been indefeasibly paid in full. 
  
 The occurrence of any one or more of the following shall constitute an “Event of Default” hereunder: 

 (1) Failure to pay any amount of the principal of, or any other sum payable in respect of the debt
evidenced by this Note (whether upon maturity hereof, upon any prepayment date for which proper notice has been given, upon acceleration, or otherwise) when such payments are due and payable; 
  
 (2) The Maker shall admit in writing its inability to pay its debts as such
debts become due or shall make a general assignment for the benefit of creditors; the Maker shall commence any proceeding or other action seeking reorganization, dissolution, liquidation or any other arrangement of it or its debts under any laws
relating to bankruptcy, reorganization, or relief of debtors, or seeking appointment of a receiver, trustee, or other similar official for it or for any substantial part of its property; or any proceeding or other action against the Maker shall be
commenced seeking to have an order for relief entered against the Maker as debtor, or seeking reorganization, dissolution or any other arrangement of the Maker or its debts under any laws relating to bankruptcy, reorganization, or relief of debtors,
or seeking appointment of a receiver, trustee or other similar official for the Maker or for any substantial part of the property of the Maker, and (i) the Maker shall indicate its consent to or acquiescence in such case, proceeding, or action, (ii)
such proceeding or action results in the entry of an order for relief which is not fully stayed within thirty (30) days after the entry thereof, or (iii) such proceeding or action remains undismissed for a period of thirty (30) days or more or is
dismissed or suspended only pursuant to Section 305 of the United States Bankruptcy Code or any corresponding provision of any future United States bankruptcy law; and 
  
 (3) A final judgment shall be rendered by a court of law or equity against the Maker in excess of One Million Dollars
($1,000,000.00), and the same shall remain undischarged for a period of thirty (30) days, unless either (i) such judgment is fully covered by collectible insurance and such insurer has within such period acknowledged such coverage in writing, or
(ii) although not fully covered by insurance, enforcement of such judgment has been effectively stayed, such judgment is being contested or appealed by appropriate proceedings and the Maker has established reserves adequate, in its reasonable
judgment, for payment in the event such person or entity is ultimately unsuccessful in such contest or appeal and evidence thereof is provided to the Holder. 
  
 Upon the occurrence of any such Event of Default hereunder, the entire principal amount hereof and any other amounts due hereunder, shall, at the
Holder’s election be accelerated, and shall be and become immediately due and payable without demand or notice, and in addition thereto, and not in substitution therefor, the Holder shall be entitled to exercise any one or more of the rights
and remedies exercisable by the Holder upon an Event of Default under this Note or under applicable law, provided that if the occurrence of an Event of Default is due 
  

 2 

 to the failure to pay all amounts due hereunder on the Maturity Date and there has been a Failed Offering, the
Holder’s sole remedy shall be to seek recourse under the Guarantee Agreement of even date herewith given by SLIC for the benefit of Holder. Subject to the immediately preceding proviso, failure to exercise remedies under this Note or to pursue
remedies under applicable law shall not constitute a waiver of remedies under this Note or remedies under applicable law or of the right to exercise any of the same in the event of any subsequent Event of Default. In no event shall Holder have any
remedies or recourse against any (i) affiliate of the Maker (other than pursuant to the Guarantee Agreement of even date herewith given by SLIC), or (ii) director, member, officer, partner (general or limited), employee or agent of the Maker or of
any affiliate of the Maker. 
  
 In the event that the principal
amount hereof, or other sum due hereunder is not paid when due in accordance with this Note, the unpaid principal amount evidenced hereby and any other sum due hereunder shall, from the date such payment was due and unpaid until the date of payment
in full thereof (whether in cash or common stock of SLIC), bear interest (before and after judgment) at a rate of fifteen percent (15%) per annum (the “Default Rate”), which rate shall commence, without notice, immediately upon the
failure to make any such payment when due. 
  
 The Maker promises
to pay all reasonable costs and expenses (including without limitation reasonable attorneys’ fees and other costs) incurred in connection with the collection hereof and to perform each and every covenant or agreement to be performed by the
Maker under this Note. 
  
 Any payment on this Note coming due on
a Saturday, a Sunday, or a day which is a legal holiday (i.e., a date that is not a “Business Day”) in the place at which a payment is to be made hereunder shall be made on the next succeeding day which is a business day in such
place, and any such extension of the time of payment shall be included in the computation of interest hereunder. 
  
 Each Obligor (which term shall include the Maker and all makers, sureties, guarantors, endorsers, and other persons assuming obligations pursuant to this
Note) under this Note hereby waives presentment, protest, demand, notice of dishonor, and all other notices, and all defenses and pleas on the grounds of any extension or extensions of the time of payments or the due dates of this Note, in whole or
in part, before or after maturity, with or without notice. No renewal or extension of this Note, no release of any Obligor, and no delay in enforcement of this Note or in exercising any right or power hereunder, shall affect the liability of any
Obligor. The pleading of any statute of limitations as a defense to any demand against any Obligor is expressly waived. 
  

 3 

 No single or partial exercise by the Holder of any right hereunder shall preclude any other or further
exercise thereof or the exercise of any other rights. No delay or omission on the part of the Holder in exercising any right hereunder shall operate as a waiver of such right or of any other right under this Note. 
  
 This Note and all agreements between the Maker and the Holder relating hereto
are hereby expressly limited so that in no contingency or event whatsoever, whether by reason of acceleration or otherwise, shall the amount paid or agreed to be paid to the Holder for the use, forbearance or detention of money hereunder exceed the
maximum amount permissible under applicable law. If from any circumstance whatsoever fulfillment of any provision hereof, at the time performance of such provision shall be due, shall involve transcending the limit of validity prescribed by law,
then, ipsofacto, the obligation to be fulfilled shall be reduced to the limit of such validity, and if from any such circumstance the Holder shall ever receive interest, or anything which might be deemed interest under applicable law,
which would cause the total amount of interest hereunder to exceed the highest lawful rate, such amount which would be excessive interest shall be applied to the reduction of the principal amount owing on account of this Note (applied to
installments of principal in the inverse order of their scheduled maturities) and not to the payment of interest, or if such excessive interest exceeds the unpaid principal balance of this Note, such excess shall be refunded to the Maker. All sums
paid or agreed to be paid to the Holder for the use, forbearance or detention of the indebtedness of the Maker to the Holder shall, to the extent permitted by applicable law, be deemed to be amortized, prorated, allocated and spread throughout the
full term of such indebtedness until payment in full on the Maturity Date so that the actual rate of interest on account of such indebtedness is uniform throughout the term thereof. The terms and provisions of this paragraph shall control and
supersede every other provision of this Note and all other agreements between the Maker and the Holder. 
  
 The Maker hereby declares, represents, and warrants that (i) the Maker is a business or commercial organization and (ii) the indebtedness evidenced hereby
is (A) made solely for the purpose to acquire or carry on a business or commercial enterprise and (B) is not secured by residential real property, within the meaning of Md. Code Ann., Com. Law § 12-103(e). 
  
 Whenever used herein, the words “Maker” and “Holder” and
“Obligor” shall be deemed to include their respective successors and, except as to Maker, assigns. 
  
 Holder may assign this Note only to its subsidiaries or affiliates. 
  

 4 

 This Note shall be governed by and construed under and in accordance with the laws of Maryland (but not
including the choice of law rules thereof). 
  
 All notices and
other communications given by the Maker and the Holder to each other with respect to this Note shall be given in writing to the following addresses: 
  
 If to the Holder, to: 
  
 Barceló Crestline Corporation 
 8405
Greensboro Drive, Suite 500 
 McLean, Virginia 22102 
 Attention: General Counsel 
  
 With a copy to: 
  
 Barceló Crestline Corporation

 8405 Greensboro. Drive, Suite 500 
 McLean, Virginia 22102 
 Attention: Chief Operating Officer 
  
 If to the Maker, to: 
  
 Sandalwood Hospitality Advisors, LLC 
 11790
Glen Road 
 Potomac, Maryland 20854 
 Attention: Douglas H. S. Greene 
  
 With a copy to:

  
 Jonathan Baum 
 39 Hollenbeck Avenue 
 Great Barrington,
Massachusetts 01230 
  
 EACH PARTY TO THIS AGREEMENT HEREBY WAIVES
TRIAL BY JURY IN ANY LITIGATION BETWEEN THE MAKER AND THE HOLDER ARISING OUT OF THIS NOTE AND THE TRANSACTIONS CONTEMPLATED HEREBY. 
  
 THE PARTIES HERETO SUBMIT (AND WAIVE ALL RIGHTS TO OBJECT) TO NON-EXCLUSIVE PERSONAL JURISDICTION IN THE STATE OF MARYLAND FOR THE ENFORCEMENT OF ANY AND
ALL OBLIGATIONS UNDER THIS NOTE, EXCEPT THAT IF ANY SUCH ACTION OR PROCEEDING 
  

 5 

 ARISES UNDER THE CONSTITUTION, LAWS OR TREATIES OF THE UNITED STATES OF AMERICA, OR IF THERE IS A DIVERSITY OF
CITIZENSHIP BETWEEN THE PARTIES THERETO, SO THAT IT IS TO BE BROUGHT IN A UNITED STATES DISTRICT COURT, IT SHALL BE BROUGHT IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND, SOUTHERN DIVISION OR ANY SUCCESSOR FEDERAL COURT HAVING
ORIGINAL JURISDICTION. 
  
 IN WITNESS WHEREOF, the undersigned has
duly executed this Note, or have caused this Note to be duly executed on its behalf, as of the day and year first hereinabove set forth. 
  

	 WITNESS/ATTEST
	 	 	 	 SANDALWOOD HOSPITALITY
 ADVISORS, LLC

				
	 /s/    Lillian
Lee        

	 	 	 	By:	 	 /s/    Douglas H.S. Greene
        

	 	 	 	 	 	 	 Name:
 Title:
	 	 Douglas H.S. Greene
 Managing Director, Vice Chairman
 and Chief Investment Officer

  

 6Guarantee of Sandalwood Hospitality Advisors, LLC

 EXHIBIT 10.9 
  
 GUARANTEE OF 
 SANDALWOOD HOSPITALITY ADVISORS, LLC 
  
 FOR VALUE
RECEIVED, the sufficiency and receipt of which are hereby acknowledged, Sandalwood Lodging Investment Corporation, a Maryland corporation (“Guarantor”) and affiliate of the Advisor (as defined below), hereby absolutely, unconditionally and
irrevocably guarantees to Barceló Crestline Corporation, a Maryland corporation (the “Company”), and for its successors, endorsees, transferees and assigns, the due and punctual payment of any and all amounts that become due and
payable pursuant to the terms and provisions of that certain Promissory Note issued by Sandalwood Hospitality Advisors, LLC (the “Advisor”) payable to the order of the Company, dated July 24, 2003 (the “Note”). Guarantor hereby
agrees to pay to the Company in cash or, at the option of Guarantor, in shares of its common stock (at a per share conversion price equal to the lower of (i) the price at which the Guarantor is then issuing its shares to the general public, or (ii)
$20.00 per share) or in a combination of cash and its common stock all amounts due and payable under the Note that have not been delivered by the Advisor. 
  
 Guarantor hereby agrees that its obligations hereunder shall be absolute, irrevocable and unconditional, irrespective of: (i) the validity, regularity or
enforceability of the Note; (ii) the absence of any action to enforce the Note; (iii) any waiver or consent by the Company concerning any provisions thereof; (iv) the rendering of any judgment against the Advisor or any action to enforce the same;
or (v) any other circumstances that might otherwise constitute a legal or equitable discharge of a guarantor or a defense of a guarantor. Guarantor covenants that this Guarantee will not be discharged except by complete payment of the amounts
specified above in the manner specified above. This Guarantee shall continue to be effective if Guarantor merges or consolidates with or into another entity, loses its separate legal identity or ceases to exist. 
  
 Guarantor agrees that the Company shall have the full right, in its sole
discretion and without any notice to or consent from Guarantor, from time to time and at any time and without affecting, impairing, or discharging, in whole or in part, the liability of Guarantor hereunder: (a) to make any change, amendment, or
modification whatsoever of any of the terms or conditions of the Note; (b) to extend, in whole or in part, by renewal or otherwise, and on one or any number of occasions, the time for the payment of any principal or any other amount pursuant to the
Note or for the performance of any term or condition of the Note; and (c) to settle, compromise, release, substitute, surrender, modify, or impair, to enforce and exercise, or to fail or refuse to enforce or exercise, any claims, rights, or
remedies, of any kind or nature, which the Company may at any time have against the Advisor. 

 Guarantor agrees that Guarantor’s obligations hereunder are irrevocable, and are independent of the
obligations of the Advisor; that a separate action or actions may be brought and prosecuted against Guarantor regardless of whether any action is brought against the Advisor or whether the Advisor is joined in any such action or actions. 

 
 Guarantor hereby waives: diligence; presentment; protest; notice of
protest, acceleration, and dishonor, notice of non-payment at maturity, any other notice, filing of claims with a court in the event of insolvency or bankruptcy of Guarantor; all demands whatsoever, except as noted in the first paragraph hereof; all
statutes of limitation; and any right to require a proceeding first against Guarantor. 
  
 Guarantor agrees that Guarantor shall have no right of subrogation whatever with respect to the indebtedness guaranteed hereby. 
  
 In no event shall the Company have any remedies or recourse against any (i) affiliate of the Guarantor (other than pursuant to the Note), or (ii) director, member,
officer, partner (general or limited), employee or agent of the Guarantor or of any affiliate of the Guarantor. 
  
 This Guarantee shall remain in full force and effect and be binding in accordance with and to the extent of its terms upon Guarantor and the successors
and assigns thereof, and shall inure to the benefit of the Company, and its respective successors, endorsees, transferees and assigns. 
  
 Guarantor hereby certifies and warrants that this Guarantee constitutes the valid obligation of Guarantor and complies with all applicable laws.

  
 Guarantor agrees that in the event that the Company retains or
engages an attorney or attorneys to enforce this Guarantee, Guarantor will reimburse the Company for all reasonable expenses incurred, including reasonable attorneys’ fees and disbursements. 
  
 This Guarantee shall be governed by, and construed in accordance with, the
laws of the State of Maryland (but not including the choice of law rules thereof). 
  
 Guarantor irrevocably submits to the non-exclusive jurisdiction of any court sitting in the State of Maryland in any action or proceeding arising out of or relating to this Guarantee, and irrevocably agree that all
claims in respect of such action or proceeding may be heard and determined in such State or Federal court. 
  

 2 

 This Guarantee becomes effective concurrent with the effectiveness of the Note, according to its terms.

  
 IN WITNESS WHEREOF, Guarantor has caused this Guarantee to be
executed in its name by its duly authorized representative. 
  

	 SANDALWOOD LODGING INVESTMENT
 CORPORATION

		
	 By:
	 	 /s/    Douglas H.S. Greene
        

	 Name:
 Title:
	 	 Douglas H.S. Greene
 Managing Director, Vice Chairman and
 Chief Investment Officer

		
	 Address:
	 	 11790 Glen Road
 Potomac, Maryland 20854

		
	 Date:
	 	 July 24, 2003

  

 3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}]]