$1,000,000 June 8, 1995 New York, New York PROMISSORY NOTE FOR VALUE RECEIVED, AIRCOA HOTEL PARTNERS, L.P., AURORA INN OPERATING PARTNERSHIP, L.P., FOURWINDS OPERATING PARTNERSHIP, L.P., MCCORMICK RANCH OPERATING PARTNERSHIP, L.P., BUFFALO OPERATING PARTNERSHIP, L.P., LAKESIDE OPERATING PARTNERSHIP, L.P. and DURHAM OPERATING PARTNERSHIP, L.P., each being a Delaware limited partnership (collectively, the "COMPANY"), hereby jointly and severally promise to pay to THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED (the "BANK"), for account of its Applicable Lending Office provided for by the Credit Agreement referred to below, at its principal New York office at 140 Broadway, New York, New York 10005-1196, the principal amount of One Million Dollars ($1,000,000) (or, such lesser amount as shall equal the aggregate unpaid principal amount of the Revolving Loans made by the Bank to the Company under the Credit Agreement), in lawful money of the United States of America and in immediately available funds, on the dates and in the principal amounts provided in the Credit Agreement, and to pay interest on the unpaid principal amount hereof, at such office, in like money and funds, for the period commencing on the date hereof until such principal amount shall be paid in full at the rates per annum and on the dates provided in the Credit Agreement. The date, amount, interest rate and duration of Interest Period (if applicable) of the principal amount evidenced hereby, and each payment made on account thereof, shall be recorded by the Bank on its books and, prior to any transfer of this Promissory Note, endorsed by the Bank on the schedule attached hereto or any continuation thereof, PROVIDED, that the failure of the Bank to make any such recordation or endorsement shall not affect the obligations of the Company to make a payment when due of any amount owing under the Credit Agreement or hereunder in respect of the principal amount evidenced hereby. This Promissory Note is the Revoling Note referred to in the Credit Agreement dated as of June 8, 1995 (as amended from time to time, the "CREDIT AGREEMENT") between the Company and Bank, and evidences the Revoling Loans made by the Bank thereunder. Terms used but not defined in this Note have the respective meanings assigned to them in the Credit Agreement. The Credit Agreement provides for the acceleration of the maturity of this Note upon the occurrence of certain events and for prepayments of the Revolving Loans upon the terms and conditions specified therein. Exhibit 10.40b 2 Except as permitted by Section 10.06(b) and (c) of the Credit Agreement, this Note may not be assigned by the Bank to any other Person. This Promissory Note shall be governed by and construed in accordance with the law of the State of New York. AIRCOA HOTEL PARTNERS, L.P. By: AIRCOA HOSPITALITY SERVICES, INC., its general partner By:/s/ Michael Sheh ------------------------------ Michael Sheh Senior Vice President By:/s/ David C. Ridgley ------------------------------ David C. Ridgley Vice President AURORA INN OPERATING PARTNERSHIP, L.P. By: AIRCOA HOSPITALITY SERVICES, INC., its general partner By:/s/ Michael Sheh ------------------------------ Michael Sheh Senior Vice President By:/s/ David C. Ridgley ------------------------------ David C. Ridgley Vice President 3 FOURWINDS OPERATING PARTNERSHIP, L.P. By: AIRCOA HOSPITALITY SERVICES, INC., its general partner By:/s/ Michael Sheh ------------------------------ Michael Sheh Senior Vice President By:/s/ David C. Ridgley ------------------------------ David C. Ridgley Vice President By: AIRCOA HOSPITALITY SERVICES, INC., its general partner By:/s/Michael Sheh ---------------- Michael Sheh Senior Vice President By:/s/David C. Ridgley ----------------- David C. Ridgley Vice President MCCORMICK RANCH OPERATING PARTNERSHIP, L.P. By: AIRCOA HOSPITALITY SERVICES, INC., its general partner By:/s/Michael Sheh ---------------------------- Michael Sheh Senior Vice President By:/s/David C. Ridgley ---------------------------- David C. Ridgley Vice President LAKESIDE OPERATING PARTNERSHIP, L.P. By: AIRCOA HOSPITALITY SERVICES, INC., its general partner By:/s/Michael Sheh ---------------------------- Michael Sheh Senior Vice President By:/s/David C. Ridgley ---------------------------- David C. Ridgley Vice President DURHAM OPERATING PARTNERSHIP, L.P. BUFFALO OPERATING PARTNERSHIP, L.P. By: AIRCOA HOSPITALITY SERVICES, INC., its general partner By:/s/ Michael Sheh ------------------------------ Michael Sheh Senior Vice President By:/s/ David C. Ridgley ------------------------------ David C. Ridgley Vice President 5 DURHAM OPERATING PARTNERSHIP, L.P. By: AIRCOA HOSPITALITY SERVICES, INC., its general partner By:/s/ Michael Sheh ------------------------------ Michael Sheh Senior Vice President By:/s/ David C. Ridgley ------------------------------ David C. Ridgley Vice President Address for Notices: 5775 DTC Boulevard Englewood, CO 80111 Attention: Michael Sheh Senior Vice President Telecopier No.: 303-220-2341 Telephone No.: 303-220-2000 with a copy to: 5775 DTC Boulevard Englewood, CO 80111 Attn: Lyle Boll, Esq. Corporate Counsel SCHEDULE OF LOAN This Mortgage Note evidences the Mortgage Loan made under the within- described Credit Agreement to the Company, on the date, in the principal amount, bearing interest at the rates and having Interest Periods (if applicable) of the durations set forth below, subject to the payments, conversion and prepayments of principal set forth below: Amount Date Prin- Paid, Made, cipal Duration Prepaid Unpaid Continued Amount of Continued Prin- Notation Converted Loan Rate Period Converted Amount Made by --------- ------ ------ -------- --------- ------ -------