Document:

Moody National REIT II, Inc. 8-K

Exhibit 10.1

 

TERM LOAN AGREEMENT

 

DATED AS OF SEPTEMBER 27, 2017

 

by and among

 

MOODY NATIONAL OPERATING PARTNERSHIP II,
LP, 

a Delaware limited partnership,

 

AS
BORROWER,

 

MOODY
NATIONAL REIT II, INC., 

a Maryland corporation,

 

AS
REIT GUARANTOR

 

VARIOUS
SUBSIDIARIES OF THE BORROWER 

 

AS
GUARANTORS

 

KEYBANK NATIONAL ASSOCIATION,

 

THE OTHER LENDERS WHICH ARE PARTIES TO THIS
AGREEMENT

 

AND

 

OTHER LENDERS THAT MAY BECOME

 

PARTIES TO THIS AGREEMENT,

 

KEYBANK NATIONAL ASSOCIATION, AS AGENT,
and

 

KEYBANC CAPITAL MARKETS, AS LEAD ARRANGER

 

    	 	 	 

     

    

 

TABLE
OF CONTENTS

 

	§1.         DEFINITIONS AND RULES OF INTERPRETATION	1
	§1.1           Definitions	1
	§1.2           Rules of Interpretation	25
	§2.         THE CREDIT FACILITY	26
	§2.1           Commitment to Lend	26
	§2.2           Notes	26
	§2.3           Interest on the Loan	26
	§2.4           [Intentionally Omitted]	27
	§2.5           [Intentionally Omitted]	27
	§2.6           Use of Proceeds	27
	§2.7           Extension of Maturity Date	27
	§3.         REPAYMENT OF THE LOAN	28
	§3.1           Stated Maturity	28
	§3.2           Mandatory Prepayments	28
	§3.3           Optional Prepayments	28
	§3.4           Partial Prepayments	29
	§3.5           Effect of Prepayments	29
	§4.         CERTAIN GENERAL PROVISIONS	29
	§4.1           Conversion Options	29
	§4.2           Fees	30
	§4.3           [Intentionally Omitted.]	30
	§4.4           Funds for Payments	30
	§4.5           Computations	32
	§4.6           Suspension of LIBOR Rate Loans	32
	§4.7           Illegality	33
	§4.8           Additional Interest	33
	§4.9           Additional Costs, Etc.	33
	§4.10         Capital Adequacy	34
	§4.11         Breakage Costs	34
	§4.12         Default Interest; Late Charge	34
	§4.13         Certificate	35
	§4.14         Limitation on Interest	35
	§4.15         Certain Provisions Relating to Increased Costs and Non-Funding Lenders	35
	§4.16         Acknowledgement and Consent to Bail-In of EEA Financial Institutions	36
	§5.         COLLATERAL SECURITY	37
	§5.1           Collateral	37
	§5.2           Appraisals; Adjusted Value	37
	§5.3           Release of Collateral	37
	§6.         REPRESENTATIONS AND WARRANTIES	38
	§6.1           Corporate Authority, Etc.	38
	§6.2           Governmental Approvals	39
	§6.3           Title to Mortgaged Properties	39
	§6.4           Financial Statements	39
	§6.5           No Material Changes	40

 

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	§6.6           Franchises, Patents, Copyrights, Etc.	40
	§6.7           Litigation	40
	§6.8           No Material Adverse Contracts, Etc.	40
	§6.9           Compliance with Other Instruments, Laws, Etc.	40
	§6.10         Tax Status	40
	§6.11         No Event of Default	41
	§6.12         Investment Company Act	41
	§6.13         Absence of UCC Financing Statements, Etc.	41
	§6.14         Setoff, Etc.	41
	§6.15         Certain Transactions	41
	§6.16         ERISA	41
	§6.17         Disclosure	42
	§6.18         Trade Name; Place of Business	42
	§6.19         Regulations T, U and X	42
	§6.20         Environmental Compliance	43
	§6.21         Leases	44
	§6.22         Property	45
	§6.23         Brokers	45
	§6.24         Other Debt	45
	§6.25         Solvency	45
	§6.26         No Bankruptcy Filing	46
	§6.27         No Fraudulent Intent	46
	§6.28         Transaction in Best Interests of Credit Parties; Consideration	46
	§6.29         Anti-Corruption; Sanctions	46
	§6.30         REIT Status	46
	§6.31         Insurance	47
	§6.32         Subsidiaries; Organizational Structure	47
	§6.33         Compliance with Law	47
	§7.         AFFIRMATIVE COVENANTS	47
	§7.1           Punctual Payment	47
	§7.2           Maintenance of Office	47
	§7.3           Records and Accounts	47
	§7.4           Financial Statements, Certificates and Information	47
	§7.5           Notices	50
	§7.6           Existence; Maintenance of Properties	51
	§7.7           Insurance; Condemnation	52
	§7.8           Taxes	56
	§7.9           Inspection of Properties and Books	56
	§7.10         Compliance with Laws, Contracts, Licenses, and Permits	56
	§7.11         Further Assurances	57
	§7.12         Management	57
	§7.13         Leases of the Property	57
	§7.14         Business Operations	57
	§7.15         Registered Servicemark	57
	§7.16         Ownership of Real Estate	58
	§7.17         Net Equity	58

 

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	§7.18         Deposit Accounts, Cash Management; Reserves	58
	§7.19         Keepwell	61
	§7.20         Rate Cap	61
	§7.21         REIT Status	61
	§7.22         Hotel Documents	61
	§7.23         Capital Event	63
	§7.24         Ownership of Borrower	63
	§7.25         Fees to Affiliates	63
	§8.   
         NEGATIVE COVENANTS	63
	§8.1           Restrictions on Indebtedness	63
	§8.2           Restrictions on Liens, Etc.	64
	§8.3           Restrictions on Investments	65
	§8.4           Merger, Consolidation; Acquisitions	65
	§8.5           Sale and Leaseback	66
	§8.6           Compliance with Environmental Laws	66
	§8.7           Distributions	67
	§8.8           Restriction on Prepayment of Indebtedness	67
	§8.9           Zoning and Contract Changes and Compliance	68
	§8.10         Derivatives Contracts	68
	§8.11         Transactions with Affiliates	68
	§8.12         Asset Sales	68
	§9.         FINANCIAL COVENANTS	68
	§9.1           Consolidated Leverage Ratio	68
	§9.2           Fixed Charge Coverage Ratio	69
	§9.3           Consolidated Tangible Net Worth	69
	§9.4           Net Equity	69
	§10.       CLOSING CONDITIONS	69
	§10.1         Loan Documents	69
	§10.2         Certified Copies of Organizational Documents	69
	§10.3         Resolutions	69
	§10.4         Incumbency Certificate; Authorized Signers	69
	§10.5         Opinion of Counsel	69
	§10.6         Insurance	70
	§10.7         Performance; No Default	70
	§10.8         Representations and Warranties	70
	§10.9         Proceedings and Documents	70
	§10.10       Eligible Real Estate Qualification Documents	70
	§10.11       Compliance Certificate	70
	§10.12       Appraisals	70
	§10.13       Consents	70
	§10.14       Financial Statements	70
	§10.15       Rate Cap	71
	§10.16       Hotel Agreements	71
	§10.17       Master Lease Subordination Agreements	71
	§10.18       Settlement Statements	71
	§10.19       Unrestricted Cash	71

 

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	§10.20       Acquisition	71
	§10.21       Material Change	71
	§10.22       Reserves	71
	§10.23       Accounts	71
	§10.24       Fees	72
	§10.25       Other	72
	§11.       INTENTIONALLY DELETED	72
	§12.       EVENTS OF DEFAULT; ACCELERATION; ETC.	72
	§12.1         Events of Default and Acceleration	72
	§12.2         Remedies	75
	§12.3         Distribution of Collateral Proceeds	75
	§13.       SETOFF	76
	§14.       THE AGENT	76
	§14.1         Authorization	76
	§14.2         Employees and Agents	77
	§14.3         No Liability	77
	§14.4         No Representations	77
	§14.5         Payments	78
	§14.6         Holders of Notes	78
	§14.7         Indemnity	78
	§14.8         Agent as Lender	78
	§14.9         Resignation	79
	§14.10       Duties in the Case of Enforcement	79
	§14.11       Bankruptcy	80
	§14.12       Request for Agent Action	80
	§14.13       Reliance by Agent	80
	§14.14       Approvals	81
	§14.15       Credit Parties Not Beneficiary	81
	§14.16       Defaulting Lenders	81
	§14.17       Reliance on Hedge Provider	83
	§15.       EXPENSES	83
	§16.       INDEMNIFICATION	84
	§17.       SURVIVAL OF COVENANTS, ETC.	84
	§18.       ASSIGNMENT AND PARTICIPATION	85
	§18.1         Conditions to Assignment by Lenders	85
	§18.2         Register	85
	§18.3         New Notes	85
	§18.4         Participations	86
	§18.5         Pledge by Lender	86
	§18.6         No Assignment by Credit Parties	87
	§18.7         Disclosure	87
	§19.       NOTICES	88
	§20.       RELATIONSHIP	89
	§21.       GOVERNING LAW; CONSENT TO JURISDICTION AND SERVICE	89
	§22.       HEADINGS	89
	§23.       COUNTERPARTS	89

 

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	§24.       ENTIRE AGREEMENT, ETC.	90
	§25.       WAIVER OF JURY TRIAL AND CERTAIN DAMAGE CLAIMS	90
	§26.       DEALINGS WITH THE CREDIT PARTIES	90
	§27.       CONSENTS, AMENDMENTS, WAIVERS, ETC.	91
	§28.       SEVERABILITY	91
	§29.       TIME OF THE ESSENCE	91
	§30.       NO UNWRITTEN AGREEMENTS	91
	§31.       REPLACEMENT NOTES	92
	§32.       NO THIRD PARTIES BENEFITED	92
	§33.       PATRIOT ACT	92
	§34.       [Intentionally Omitted.]	92
	§35.       [Intentionally Omitted.]	92
	§36.       ADDITIONAL AGREEMENTS CONCERNING OBLIGATIONS OF CREDIT PARTIES	92
	§36.1         Attorney-in-Fact	93
	§36.2         Waiver of Automatic or Supplemental Stay	93
	§36.3         Waiver of Defenses	93
	§36.4         Waiver	95
	§36.5         Subordination	95
	§37.       ACKNOWLEDGMENT OF BENEFITS; EFFECT OF AVOIDANCE PROVISIONS	96

 

    v

     

    

 

EXHIBITS
AND SCHEDULES

 

	Exhibit A	FORM OF NOTE
	Exhibit B	INTENTIONALLY DELETED
	Exhibit C	FORM OF CONVERSION/CONTINUATION REQUEST
	Exhibit D	INTENTIONALLY DELETED
	Exhibit E	INTENTIONALLY DELETED
	Exhibit F	FORM OF COMPLIANCE CERTIFICATE
	Exhibit G	FORM OF ASSIGNMENT AND ACCEPTANCE AGREEMENT
	Exhibit NCF	NET CASH FLOW SPREADSHEET
	Exhibit 2.6	ACQUISITION SOURCES AND USES
	Exhibit 7.17(a)(i)	MORTGAGED PROPERTY ACCOUNT DISBURSEMENTS
	Exhibit 7.18	FF&E/PIP DISBURSEMENTS
	Schedule 1.1	LENDERS AND COMMITMENTS
	Schedule 1.1-B	COLLATERAL – DISTRIBUTION INTEREST PLEDGES
	Schedule 1.1-C	COLLATERAL – OWNERSHIP INTEREST PLEDGES
	Schedule 1.2	ELIGIBLE REAL ESTATE QUALIFICATION DOCUMENTS
	Schedule 6.3	LIST OF ALL ENCUMBRANCES ON ASSETS
	Schedule 6.7	PENDING LITIGATION
	Schedule 6.15	CERTAIN TRANSACTIONS
	Schedule 6.20	REQUIRED ENVIRONMENTAL ACTIONS
	Schedule 6.22	LEASES AND HOTEL LEASES
	Schedule 6.24	MATERIAL AGREEMENTS
	Schedule 6.32	SUBSIDIARIES
	Schedule PIP	PROPERTY IMPROVEMENT PLANS

 

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TERM
LOAN AGREEMENT

 

THIS TERM LOAN AGREEMENT
is made as of the 27th day of September, 2017 (the “Closing Date”), by and among MOODY NATIONAL OPERATING
PARTNERSHIP II, LP, a Delaware limited partnership (“Borrower”), MOODY NATIONAL REIT II, INC., a
Maryland corporation (“REIT”), and various Subsidiaries of the Borrower as guarantors (individually, each a
“Guarantor” and collectively, the “Guarantors”), KEYBANK NATIONAL ASSOCIATION, a national
banking association (“KeyBank”), the other lending institutions which are parties to this Agreement as “Lenders”,
and the other lending institutions that may become parties hereto pursuant to §18, and KEYBANK NATIONAL ASSOCIATION,
a national banking association, as Agent for the Lenders (the “Agent”).

 

R E C I
T A L S

 

WHEREAS, Borrower
has requested that the Lenders provide a term loan to Borrower; and

 

WHEREAS, the
Agent and the Lenders are willing to provide such term loan to Borrower on and subject to the terms and conditions set forth herein;

 

NOW, THEREFORE,
in consideration of the recitals herein and mutual covenants and agreements contained herein, the parties hereto hereby covenant
and agree as follows:

 

		§1.	DEFINITIONS AND RULES OF INTERPRETATION.

 

§1.1
        Definitions. The following terms shall have the meanings set forth in this §l or elsewhere in the provisions of this Agreement
referred to below:

 

“Account”
See §7.18(a).

 

“Account
Pledge Agreement” Each account pledge agreement and/or control agreement, between a Credit Party and Agent.

 

“Acquisition”
See §2.6.

 

“Adjusted
Consolidated EBITDA” Consolidated EBITDA less (i) Deemed FF&E Reserves, (ii) Management Fees and (iii) franchise
fees (to the extent not already included in Consolidated EBITDA) adjusted on a pro forma basis, in a manner satisfactory to Agent,
to account for Real Estate acquired or sold during the applicable period.

 

“Adjusted
Net Operating Income” means, the Net Operating Income with respect to each Hotel Property less the Deemed FF&E Reserve
for such property.

 

“Advisor”
Moody National Advisor II, LLC, a Delaware limited liability company or such other entity that is 100% owned and controlled by
Brett C. Moody.

 

“Affiliate”
An Affiliate, as applied to any Person, shall mean any other Person directly or indirectly controlling, controlled by, or under
common control with, that Person. For purposes of this definition, “control” (including, with correlative meanings,
the terms “controlling”, “controlled by” and “under common control with”), as applied to any
Person, means (a) the possession, directly or indirectly, of the power to vote ten percent (10%) or more of the stock, shares,
voting trust certificates, beneficial interest, partnership interests, member interests or other interests having voting power
for the election of directors of such Person or otherwise to direct or cause the direction of the management and policies of that
Person, whether through the ownership of voting securities or by contract or otherwise, or (b) the ownership of (i) a general
partnership interest, (ii) a managing member’s or manager’s interest in a limited liability company or (iii) a limited
partnership interest or preferred stock (or other Equity Interest) representing twenty percent (20%) or more of the outstanding
limited partnership interests, preferred stock or other Equity Interests of such Person.

 

    	 	 	 

     

    

 

“Agent”
KeyBank National Association, a national banking association, acting as administrative agent for the Lenders, and its successors
and assigns.

 

“Agent’s
Head Office” The Agent’s head office located at 127 Public Square, Cleveland, Ohio 44114-1306, or at such other
location as the Agent may designate from time to time by notice to the Borrower and the Lenders.

 

“Agent’s
Special Counsel” Riemer & Braunstein LLP or such other counsel as selected by Agent.

 

“Agreement”
This Term Loan Agreement, as the same may be amended, modified, supplemented and/or extended from time to time, including the Schedules
and Exhibits hereto.

 

“Agreement
Regarding Fees” See §4.2.

 

“Allocable
Principal Balance” See §37(b).

 

“Amortization
Payment” See §7.18(c)(v).

 

“Anti-Corruption
Laws” All laws, rules, and regulations of any jurisdiction applicable to the Borrower from time to time concerning or
relating to bribery or corruption.

 

“Applicable
Contribution” See §37(d).

 

“Applicable
Law” All applicable federal, state, county and local laws, by-laws, rules, regulations, codes and ordinances, and the
requirements of any governmental agency or authority having or claiming jurisdiction with respect thereto, including, but not
limited to, those applicable to zoning, subdivision, condominiums, building, health, fire, safety, sanitation, the protection
of the handicapped, and environmental matters and shall also include all orders and directives of any court, governmental agency
or authority having or claiming jurisdiction with respect thereto.

 

“Applicable
Margin” The Applicable Margin for LIBOR Rate Loans and Base Rate Loans shall be as set forth below:

 

LIBOR Rate
Loans – 7.25%

 

Base Rate
Loans – 6.25%

 

    2

     

    

 

Provided,
that at such time as (the outstanding principal balance of the Loan shall not exceed the lesser of (i) the Mortgaged Assets Mortgageability
Amount or (ii) an amount which would result in a Mortgaged Assets Leverage Ratio of percent (60%), then the Applicable Margin for
LIBOR Rate Loans and Base Rate Loans shall be reduced to the percentages as set forth below:

 

LIBOR Rate
Loans – 3.95%

 

Base Rate
Loans – 2.95%

 

“Appraisal”
An MAI appraisal of the value of a parcel of Real Estate, performed by an independent appraiser selected by the Agent who is not
an employee of any Credit Party, the Agent or a Lender, the form and substance of such appraisal and the identity of the appraiser
to be in compliance with the Financial Institutions Reform, Recovery and Enforcement Act of 1989, as amended, the rules and regulations
adopted pursuant thereto and all other regulatory laws and policies (both regulatory and internal) applicable to the Lenders and
otherwise acceptable to the Agent.

 

“Appraised
Value” The “as-is” value of a parcel of Real Estate determined by the most recent Appraisal of such Real
Estate.

 

“Approved
Fund” Any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender, or (c) an entity or an
Affiliate of any entity that administers or manages a Lender.

 

“Arranger”
KeyBanc Capital Markets or any successor thereto.

 

“Assignment
and Acceptance Agreement” See §18.1.

 

“Assignment
of Contracts” Each collateral assignment and security agreement in respect of contracts, licenses and permits from the
Borrower or a Subsidiary Guarantor to the Agent now or hereafter delivered to secure the Obligations, as may be modified or amended.

 

“Assignment
of Leases and Rents” Each of the assignments of leases and rents from the Borrower or a Subsidiary Guarantor to the Agent
now or hereafter delivered to secure the Obligations, as may be modified or amended.

 

“Assignment of Management
Agreement” Each assignment of management agreement from the Borrower or a Subsidiary Guarantor to the Agent, acknowledged by
the property manager of the applicable Mortgaged Property, now or hereafter delivered to secure the Obligations, as may be modified
or amended.

 

“Authorized
Officer” Any of the following Persons: Brett C. Moody, Richard W. Engel, and such other Persons as Borrower shall designate
in a written notice to Agent.

 

“Bail-In Action”
The exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of
an EEA Financial Institution.

 

“Bail-In Legislation”
With respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council
of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In
Legislation Schedule.

 

“Balance Sheet
Date” March 31, 2017.

 

    3

     

    

 

“Bankruptcy
Code” Title 11, U.S.C.A., as amended from time to time or any successor statute thereto.

 

“Base Rate”
The greatest of (a) the fluctuating annual rate of interest announced from time to time by the Agent at the Agent’s Head
Office as its “prime rate”, (b) the then applicable LIBOR for a one month Interest Period plus one percent (1.00%),
or (c) one half of one percent (0.5%) above the Federal Funds Effective Rate. The Base Rate is a reference rate and does not necessarily
represent the lowest or best rate being charged to any customer. Any change in the rate of interest payable hereunder resulting
from a change in the Base Rate shall become effective as of the opening of business on the day on which such change in the Base
Rate becomes effective, without notice or demand of any kind.

 

“Base Rate
Loans” Loans bearing interest calculated by reference to the Base Rate.

 

“Borrower”
As defined in the Preamble hereto.

 

“Breakage
Costs” The cost to any Lender of re-employing funds bearing interest at LIBOR incurred (or reasonably expected to be
incurred) in connection with (i) any payment of any portion of a LIBOR Rate Loan prior to the termination of any applicable Interest
Period, (ii) the conversion of a LIBOR Rate Loan to any other applicable interest rate on a date other than the last day of the
relevant Interest Period, or (iii) the failure of a Borrower to draw down, on the first day of the applicable Interest Period,
any amount as to which such Borrower has elected a LIBOR Rate Loan.

 

“Building”
With respect to each Mortgaged Property or parcel of Real Estate, all of the buildings, structures and improvements now or hereafter
located thereon.

 

“Business
Day” Any day on which federally-insured banking institutions located in the same city and State as the Agent’s
Head Office are located are open for the transaction of banking business and, in the case of LIBOR Rate Loans, which also is a
LIBOR Business Day.

 

“Capital Event”
means, (a) the sale or financing of any Credit Party’s or any of its Subsidiaries’ assets including Equity Interests
or Real Estate (but, for the avoidance of doubt, excluding (i) the issuance by REIT of its common shares, (ii) the issuance by
Borrower of units in exchange for interests in real property, (iii) the issuance of Equity Interests by the Borrower to the REIT,
or by Subsidiaries of the Borrower to the Borrower or to another Subsidiary, and (iv) issuances of Equity Interests of any Subsidiary
of Borrower in exchange for interests in real property), and (b) the refinancing of any Credit Party’s or any of its Subsidiaries’
Indebtedness, or (c) the collection of insurance or condemnation proceeds due to the occurrence of any damage or destruction to
any Mortgaged Property owned by a Credit Party or its Subsidiary by reason of fire or other hazard or casualty or any condemnation
for public use of any Mortgaged Property.

 

“Capitalized
Lease” A lease under which the discounted future rental payment obligations of the lessee or the obligor are required
to be capitalized on the balance sheet of such Person in accordance with GAAP.

 

“Cash Equivalents”
As of any date, (i) securities issued or directly and fully guaranteed or insured by the United States government or any agency
or instrumentality thereof having maturities of not more than one year from the date of acquisition, (ii) time deposits and certificates
of deposits having maturities of not more than one year from such date and issued by any domestic commercial bank having, (A)
senior long term unsecured debt rated at least A or the equivalent thereof by S&P or A2 or the equivalent thereof by Moody’s
and (B) capital and surplus in excess of $100,000,000; (iii) commercial paper rated at least A-1 or the equivalent thereof by
S&P or P-1 or the equivalent thereof by Moody’s and in either case maturing within one hundred twenty (120) days from
such date, and (iv) shares of any money market mutual fund rated at least AAA or the equivalent thereof by S&P or at least
Aaa or the equivalent thereof by Moody’s.

 

    4

     

    

 

“CERCLA”
The Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. 9601 et seq.

 

“Change in
Law” The occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of
any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation
or application thereof by any Governmental Authority or (c) the making or issuance of any request, guideline or directive (whether
or not having the force of law) by any Governmental Authority; provided, that, notwithstanding anything herein to the contrary,
(i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder
or issued in connection therewith and (ii) all requests, rules, guidelines or directives promulgated by the Bank for International
Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States regulatory
authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law”, regardless of
the date enacted, adopted or issued.

 

“Change of
Control” A Change of Control shall exist upon the occurrence of any of the following:

 

(a)                   Any
Person (including a Person’s Affiliates and associates) or group (as that term is understood under Section 13(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”) and the rules and regulations thereunder), shall have acquired
beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of a percentage (based on voting power, in the event
different classes of stock or voting interests shall have different voting powers) of the voting stock or voting interests of REIT
equal to at least twenty percent (20%);

 

(b)                   As
of any date a majority of the Board of Directors or Trustees or similar body (the “Board”) of the REIT consists of
individuals who were not either (i) directors or trustees of REIT as of the corresponding date of the previous year, or (ii) selected
or nominated to become directors or trustees by the Board of Trustees of which a majority consisted of individuals described in
clause (b)(i) above, or (iii) selected or nominated to become directors or trustees by the Board of Trustees, which majority consisted
of individuals described in clause (b)(i) above and individuals described in clause (b)(ii) above;

 

(c)                   REIT
shall fail to own, directly or indirectly, 90% of the economic, voting and beneficial Equity Interests in and control the day to
day management and policies of Borrower;

 

(d)                   Borrower
fails to own directly or indirectly, free of any lien, encumbrance or other adverse claim, 100% (with the exception of the limited
economic interests held by certain third parties in certain Subsidiaries) of the economic, voting and beneficial Equity Interests
of each Subsidiary Guarantor; or

 

    5

     

    

 

(e)                   Borrower
no longer exercises day to day control of the management and operations of each Subsidiary Guarantor.

 

“Closing
Date” As defined in the Preamble.

 

“Code”
The Internal Revenue Code of 1986, as amended.

 

“Collateral”
All of the property, rights and interests of the Credit Parties that are subject to the security interests, security title, liens,
pledges and mortgages created by the Security Documents, including, without limitation, the Mortgaged Properties.

 

“Collected
Taxes” shall mean any sales, use or occupancy taxes collected by Borrower, a Mortgaged Property Owner, Master Tenant
and/or Manager.

 

“Collection
Account” See §7.18(b).

 

“Comfort
Letter” See §10.17.

 

“Commitment”
With respect to each Lender, the amount set forth on Schedule 1.1 hereto as the amount of such Lender’s Commitment
to make or maintain Loans to the Borrower.

 

“Commitment
Percentage” With respect to each Lender, the percentage set forth on Schedule 1.1 hereto as such Lender’s
percentage of the Total Commitment, as the same may be changed from time to time in accordance with the terms of this Agreement;
provided that if the Commitments of the Lenders have been terminated as provided in this Agreement, then the Commitment of each
Lender shall be determined based on the Commitment Percentage of such Lender immediately prior to such termination and after giving
effect to any subsequent assignments made pursuant to the terms hereof.

 

“Commodity
Exchange Act” The Commodity Exchange Act (7 U.S.C. §1 et seq.), as amended from time to time, and any successor
statute.

 

“Common Distribution
Reserve” See §7.18(c)(vi).

 

“Compliance
Certificate” See §7.4(d).

 

“Condemnation
Proceeds” All compensation, awards, damages, judgments and proceeds awarded to a Credit Party by reason of any Taking,
net of all reasonable and customary amounts actually expended to collect the same and/or to maximize the total amount of the same.

 

“Consolidated”
With reference to any term defined herein, that term as applied to the accounts of a Person and its Subsidiaries, determined and
reported on a consolidating and consolidated basis in accordance with GAAP.

 

    6

     

    

 

“Consolidated
EBITDA” For the REIT and its Consolidated Subsidiaries, consolidated net income for a rolling four quarter period, adjusted
by (x) adding thereto (i) to the extent actually deducted in determining said Consolidated Net Income, Consolidated Interest Expense,
minority interest and provision for income taxes for such period (excluding, however, Consolidated Interest Expense and income
taxes attributable to unconsolidated Subsidiaries of the REIT and any of its Subsidiaries), (ii) the amount of all amortization
of intangibles and depreciation that were deducted determining Consolidated Net Income for such period, and (iii) any non-recurring
non-cash charges in such period to the extent that (A) such non-cash charges do not give rise to a liability that would be required
to be reflected on the consolidated balance sheet of the REIT (and so long as no cash payments or cash expenses will be associated
therewith (whether in the current period or for any future period)) and (B) same were deducted in determining Consolidated Net
Income for such period, and (y) subtracting therefrom, to the extent included in determining Consolidated Net Income for such period,
the amount of non-recurring non-cash gains during such period; provided that Consolidated EBITDA shall be determined without giving
effect to any extraordinary gains or losses (including any taxes attributable to any such extraordinary gains or losses) or gains
or losses (including any taxes attributable to such gains or losses) from sales of assets other than from sales of inventory (excluding
real property) in the ordinary course of business. “Consolidated EBITDA” shall be adjusted to include only the REIT’s
or its Subsidiaries’ pro-rata share of EBITDA from any unconsolidated joint venture.

 

“Consolidated
Fixed Charges” With respect to any period, for the REIT and its Consolidated Subsidiaries, the sum (without duplication)
of for a rolling four quarter period (i) Consolidated Interest Expense for such period, plus (ii) the scheduled principal amount
of all amortization payments (but not final balloon payments at maturity or Amortization Payments required hereunder) for such
period on all indebtedness of the REIT and its Consolidated Subsidiaries; plus (iii) distributions on any preferred partnership
units or preferred stock payable by the Borrower for such period and distributions made by the Borrower in such period for the
purpose of paying dividends on preferred shares issued by the REIT. “Consolidated Fixed Charges” shall include the
pro-rata share of fixed charges from any unconsolidated joint venture. “Consolidated Fixed Charges” for the period
shall be adjusted on a proforma basis to account for properties acquired or sold in the period in a manner satisfactory to the
Agent.

 

“Consolidated
Indebtedness” At any time, all Indebtedness of the REIT and its consolidated Subsidiaries; Consolidated Indebtedness
shall include the pro-rata share of indebtedness from any unconsolidated joint venture.

 

“Consolidated
Interest Expense” For a rolling four quarter period with respect to REIT and its Subsidiaries, without duplication,
interest (whether accrued or paid) actually payable (without duplication), excluding non-cash interest expense but including capitalized
interest (less capitalized interest not paid to third parties) not funded under a construction loan.

 

“Consolidated
Leverage Ratio” As of any date of determination, Consolidated Indebtedness divided by Consolidated Total Asset Value,
expressed as a percentage.

 

“Consolidated
Net Cash Flow” means the net cash flow of the REIT (subject to the terms of any underlying debt documents) as determined
on a monthly basis as provided in Exhibit NCF to be submitted by the Borrower to the Agent under §7.4.

 

“Consolidated
Tangible Net Worth” Consolidated Total Asset Value less Consolidated Indebtedness.

 

“Consolidated
Total Asset Value” means unrestricted and restricted cash of the Borrower plus the Hotel Asset Value.

 

    7

     

    

 

“Conversion/Continuation
Request” A notice given by the Borrower to the Agent of its election to convert or continue a Loan in accordance with
§4.1 in the form of Exhibit C attached hereto.

 

“Contribution”
See §37(b).

 

“Credit Party(ies)”
Individually and collectively, as the context so requires, the Borrower and the Guarantor.

 

“Debt Service
Coverage Ratio” means the ratio of Adjusted Net Operating Income attributable to the Hotel Properties on an aggregate
basis for the most recently ended trailing twelve (12) month period to Implied Debt Service Charge.

 

“Deemed FF&E
Reserve” An FF&E reserve equal to four percent (4%) of Gross Hotel Revenues.

 

“Default”
See §12.1.

 

“Default
Rate” See §4.12.

 

“Defaulting
Lender” Subject to §14.16, any Lender that (a) has failed to (i) fund all or any portion of its Loan within two
Business Days of the date the Loan was required to be funded hereunder unless such Lender notifies the Agent and the Borrower
in writing that such failure is the result of such Lender’s determination that one or more conditions precedent to funding
(each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has
not been satisfied, or (ii) pay to the Agent or any Lender any other amount required to be paid by it hereunder within two Business
Days of the date when due, (b) has notified the Borrower or the Agent in writing that it does not intend to comply with its funding
obligations hereunder, or has made a public statement to that effect (unless such writing or public statement relates to such
Lender’s obligation to fund a Loan hereunder and states that such position is based on such Lender’s determination
that a condition precedent to funding (which condition precedent, together with any applicable default, shall be specifically
identified in such writing or public statement) cannot be satisfied), (c) has failed, within three (3) Business Days after written
request by the Agent or the Borrower, to confirm in writing to the Agent and the Borrower that it will comply with its prospective
funding obligations hereunder (provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon
receipt of such written confirmation by the Agent and the Borrower) or (d) has, or has a direct or indirect parent company that
has, (i) become the subject of a proceeding under any Debtor Relief Law, or (ii) had appointed for it a receiver, custodian, conservator,
trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of
its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority
acting in such a capacity; or (iii) become the subject of a Bail-In Action; provided, that, a Lender shall not be a Defaulting
Lender solely by virtue of the ownership or acquisition of any Equity Interests in that Lender or any direct or indirect parent
company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with
immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment
on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts
or agreements made with such Lender. Any determination by the Agent that a Lender is a Defaulting Lender under any one or more
of clauses (a) through (d) above, and of the effective date of such status, shall be conclusive and binding absent manifest error,
and such Lender shall be deemed to be a Defaulting Lender (subject to §14.16) as of the date established therefor by the
Agent in a written notice of such determination, which shall be delivered by the Agent to the Borrower and each other Lender promptly
following such determination.

 

    8

     

    

 

“Defaulting
Guarantor” See §37(c).

 

“Depository
Bank” See §7.18(a).

 

“Derivatives
Contract” Any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions,
commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or
bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward
foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency
rate swap transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing
(including any options to enter into any of the foregoing and the Rate Cap), whether or not any such transaction is governed by
or subject to any master agreement. Not in limitation of the foregoing, the term “Derivatives Contract” includes any
and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed
by, any form of master agreement of a similar type published by the International Swaps and Derivatives Association, Inc., any
International Foreign Exchange Master Agreement, or any other master agreement including any such obligations or liabilities under
any such master agreement.

 

“Derivatives
Termination Value” In respect of any one or more Derivatives Contracts, after taking into account the effect of any
legally enforceable netting agreement applicable to such Derivatives Contract(s), (a) for any date on or after the date such Derivatives
Contracts have been closed out or terminated and termination value(s) determined in accordance therewith, such termination value(s),
and (b) for any date prior to the date referenced in clause (a) the amount(s) determined as the mark-to-market value(s) for such
Derivatives Contracts, as determined based upon one or more mid-market quotations or other valuations provided by any recognized
dealer in, or the counterparty to, such Derivatives Contract(s) (which, in either case, may include the Agent or any Lender).

 

“Designated
Jurisdiction” Any country or territory to the extent that such country or territory itself is the subject of any Sanction
and with which dealings are prohibited for a Credit Party under such Sanction.

 

“Distribution
Interest Pledges” The Pledge and Security Agreement (Distribution Interests) from each of (i) Borrower, (ii) the REIT,
and (iii) each Subsidiary Guarantor, and (iv) any Subsidiary of Borrower which has an intervening ownership interest in another
Subsidiary of Borrower, respectively, as pledgor to the Agent for the benefit of the Lenders respecting the “Collateral”
as therein defined and described, including, without limitation, all “Distributions” (as therein defined) with
respect to the “Ownership Interests” (as defined therein) of each pledgor in the Equity Interests of its Subsidiaries,
respectively, without duplication, for whom such pledgor is not able (and/or is prohibited) to grant an Ownership Interest Pledge
with respect to such Ownership Interests and is able to grant a Distribution Interest Pledge in respect thereof (each as reasonably
determined in good faith), whether now existing or hereafter arising, as further provided therein, respectively, now or hereafter
delivered to secure the Obligations, as the same may be modified or amended. The initial Collateral granted pursuant to the Distribution
Interest Pledges as of the Closing Date is detailed on Schedule 1.1-B.

 

    9

     

    

 

“Dollars”
or “$.” Dollars in lawful currency of the United States of America.

 

“Domestic
Lending Office” Initially, the office of each Lender designated as such on Schedule 1.1 hereto; thereafter, such
other office of such Lender, if any, located within the United States that will be making or maintaining Base Rate Loans.

 

“Drawdown
Date” The date on which the Loan is made or is to be made, and the date on which the Loan is converted in accordance
with §4.1.

 

“EEA Financial
Institution” (a) Any credit institution or investment firm established in any EEA Member Country which is subject to
the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution
described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary
of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.

 

“EEA Member
Country” Any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

 

“EEA Resolution
Authority” Any public administrative authority or any person entrusted with public administrative authority of any EEA
Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

 

“Eligible
Assignee” (a) a Lender, (b) an Affiliate of a Lender, (c) an Approved Fund and (d) any other Person (other than a natural
person) approved by the Administrative Agent and, if no Event of Default exists, Borrower (in each case, such approval not to
be unreasonably withheld or delayed). Notwithstanding the foregoing, no Credit Party nor any Affiliate thereof shall be an Eligible
Assignee.

 

“Eligible
Real Estate Qualification Documents” See Schedule 1.2 attached hereto.

 

“Employee
Benefit Plan” Any employee benefit plan within the meaning of §3(3) of ERISA maintained or contributed to by any
Credit Party or any ERISA Affiliate, other than a Multiemployer Plan.

 

“Environmental
Engineer” Such firm or firms of independent professional engineers or other scientists generally recognized as expert
in the detection, analysis and remediation of Hazardous Substances and related environmental matters as is/are acceptable to the
Agent in its reasonable discretion.

 

“Environmental
Laws” As defined in the Indemnity Agreements.

 

“Equity Interests”
With respect to any Person, any share of capital stock of (or other ownership or profit interests in) such Person, any warrant,
option or other right for the purchase or other acquisition from such Person of any share of capital stock of (or other ownership
or profit interests in) such Person, any security convertible into or exchangeable for any share of capital stock of (or other
ownership or profit interests in) such Person or warrant, right or option for the purchase or other acquisition from such Person
of such shares (or such other interests), whether voting or nonvoting, and whether or not such share, warrant, option, right or
other interest is authorized or otherwise existing on any date of determination, and any other ownership or profit interest in
such Person (including, without limitation, partnership, member or trust interests therein).

 

    10

     

    

 

“Equity Issuance”
means any issuance by a Person of any Equity Interest in such Person and shall in any event include the issuance of any Equity
Interest upon the conversion or exchange of any security constituting indebtedness that is convertible or exchangeable, or is being
converted or exchanged, for Equity Interests, but shall specifically exclude any issuance by a Person of any Equity Interest in
any Person in exchange for a contribution of real property or Equity Interests in another Person, or any other non-cash consideration.

 

“ERISA”
The Employee Retirement Income Security Act of 1974, as amended and in effect from time to time.

 

“ERISA Affiliate”
Any Person which is treated as a single employer with Borrower or its Subsidiaries under §414 of the Code.

 

“ERISA Reportable
Event” A reportable event with respect to a Guaranteed Pension Plan within the meaning of §4043 of ERISA and the
regulations promulgated thereunder as to which the requirement of notice has not been waived.

 

“EU Bail-In
Legislation Schedule” The EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor
person), as in effect from time to time.

 

“Event of
Default” See §12.1.

 

“Excluded
Swap Obligation” With respect to any Credit Party, any Hedge Obligation of another Credit party as to which such Credit
party is jointly and severally or otherwise liable (as a Borrower or as a Guarantor) pursuant to the terms of this Agreement or
any other Loan Document if, and to the extent that, the incurrence of Obligations by such Credit party in respect of such Hedge
Obligation, or the grant under a Loan Document by such Borrower of a security interest to secure such Hedge Obligation (or any
guaranty thereof), is or becomes illegal under the Commodity Exchange Act (or the application or official interpretation thereof,
including under any applicable CFTC Regulation) by virtue of such Borrower’s failure for any reason to constitute an “eligible
contract participant” as defined in the Commodity Exchange Act (determined after giving effect to any “keepwell,”
support or other agreement for the benefit of such Credit party and any and all guarantees of, or other credit support for, any
Hedge Obligation provided by other Credit Parties as further provided in §7.18) at the time such Credit party becomes jointly
and severally or otherwise liable with respect to such Hedge Obligation or grants a security interest to secure same. If a Hedge
Obligation arises under a Derivatives Contract governing more than one Hedge Obligation, such exclusion shall apply only to the
portion of such Hedge Obligation that is attributable to a Derivatives Contract for which such Hedge Obligation or security interest
becomes illegal.

 

“Existing
Debt Service” Principal and interest payments related to in-place Indebtedness as of Closing Date, exclusive of balloon
payments and the Loan.

 

“Existing
Mortgage Debt” Collectively, (i) the existing first mortgage debt provided by CitiGroup Global Markets Realty Corp. and
secured by the Fort Worth Property, and (ii) the existing first mortgage debt provided by German American Capital Corporation and
secured by the Lyndhurst Property.

 

    11

     

    

 

“Extension
Request” See §2.7(a).

 

“Extraordinary
Expenses” shall mean extraordinary operating expenses or capital expenses not set forth in a related approved annual
budget for the applicable Mortgaged Property approved by Agent following Borrower’s written request (which request shall
contain a reasonably detailed explanation of such proposed Extraordinary Expenses), which approval shall not be unreasonably withheld,
conditioned or delayed unless an Event of Default exists.

 

“FATCA”
See §4.4(b).

 

“Federal
Funds Effective Rate” For any day, the rate per annum (rounded upward to the nearest one-hundredth of one percent (1/100
of 1%)) announced by the Federal Reserve Bank of Cleveland on such day as being the weighted average of the rates on overnight
federal funds transactions arranged by federal funds brokers on the previous trading day, as computed and announced by such Federal
Reserve Bank in substantially the same manner as such Federal Reserve Bank computes and announces the weighted average it refers
to as the “Federal Funds Effective Rate.”

 

“FF&E”
All fixtures, furnishings, equipment, furniture, and other items of tangible personal property now or hereafter located on any
Real Estate or used in connection with the use, occupancy, operation and maintenance of all or any part of any Real Estate.

 

“FF&E
Cost Items” Costs and expenses to be incurred by a Credit Party in connection with the replacement of FF&E including
in the guest rooms, hallways, lobby, parking facilities and other public areas accessible by the public for regular use, and such
other similar items as Agent may approve from time to time in its reasonable discretion.

 

“FF&E
Reserve” See §7.18(c)(iii).

 

“Financing
Notice” See §38.1.

 

“Financing
Proposal” See §38.1.

 

“Fort Worth
Property” The 95 room TownPlace Suites hotel located at 4200 International Plaza, Fort Worth, Texas.

 

“Franchise
Agreement” or “Franchise Agreements”. Individually or collectively as the context may imply: (i) that
certain Courtyard by Marriott Relicensing Franchise Agreement by and between Marriott International, Inc., and Moody National CY
Lyndhurst MT, LLC, a Delaware limited liability company dated September [___], 2017; and (ii) that certain TownePlace Suites by
Marriott Relicensing Franchise Agreement by and between Marriott International, Inc. and Moody National International-Fort Worth
MT, LLC, a Delaware limited liability company dated December 18, 2015, as amended by Amendment to Towneplace Suites by Marriott
Relicensing Franchise Agreement dated March 30, 2017 and Amendment to Towneplace Suites by Marriott Relicensing Franchise Agreement
dated September [___], 2017.

 

    12

     

    

 

“Fund”
Any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in
commercial loans and similar extensions of credit in the ordinary course of its business.

 

“Funds Available
for Distribution” means excess cash flow from operations (EBITDA) after all Fixed Charges and recurring capital expenditures.

 

“Funding Guarantor”
See §37(b).

 

“GAAP”
Principles that are (a) consistent with the principles promulgated or adopted by the Financial Accounting Standards Board and its
predecessors, as in effect from time to time and (b) consistently applied.

 

“Governmental
Authority” The government of the United States or any other nation, or of any political subdivision thereof, whether
state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national
bodies such as the European Union or the European Central Bank).

 

“Gross Hotel
Revenues” All revenues and receipts derived from operating a property including but not limited to: income (before commissions
and discounts for prompt or cash payments) from rentals or sales of rooms, stores, offices, meeting space, exhibit space, or sales
space (including rentals from timeshare marketing and sales desks); license, lease, and concession fees and rentals; net income
from vending machines; health club membership fees; food and beverage sales; parking; sales of merchandise (other than proceeds
from sale of furniture, fixtures and equipment no longer necessary to the operation); service charges not distributed to employees
in lieu of gratuities; and proceeds from business interruption or other loss of income insurance. Gross Hotel Revenues shall not
include gratuities to employees; federal state, or municipal excise, sales, use or similar taxes collected directly from tenants,
patrons, or guests or included as part of the sales price of any goods or services; other insurance proceeds; condemnation proceeds;
or any proceeds from any sale of properties.

 

“Guaranteed
Pension Plan” Any employee pension benefit plan within the meaning of §3(2) of ERISA maintained or contributed to
by any Credit Party or any ERISA Affiliate the benefits of which are guaranteed on termination in full or in part by the PBGC pursuant
to Title IV of ERISA, other than a Multiemployer Plan.

 

“Guarantor”
means, collectively or individually as the context may imply, (a) the REIT, and (b) each Subsidiary Guarantor.

 

“Hazardous
Substances” As defined in the Indemnity Agreements.

 

“Hedge Obligations”
As may be applicable at any time, all obligations of Borrower to any Lender Hedge Provider to make any payments (including termination
payments) under any Derivatives Contract with respect to an interest rate swap, collar, cap or floor or a forward rate agreement
or other agreement regarding the hedging of interest rate risk exposure (including without limitation, the Rate Cap), and any
confirming letter executed pursuant to such hedging agreement, all as amended, restated or otherwise modified.

 

    13

     

    

 

“Hotel
Asset Value” means the Appraised Value of the hotel Real Estate owned (directly or indirectly) by the Credit Parties.

 

“Hotel
Documents” The Franchise Agreements, Hotel Leases and Management Agreements.

 

“Hotel
Lease” or “Hotel Leases” Individually or collectively as the context may imply, that certain Second
Amended and Restated Master Lease Agreement by and between Moody National 1 Polito Lyndhurst Holding, LLC, a Delaware limited
liability company, and Moody National CY Lyndhurst MT, LLC, a Delaware limited liability company, dated [July 31], 2017
and that certain Amended and Restated Hotel Lease Agreement by and between Moody National International-Fort Worth Holding, LLC,
a Delaware limited liability company, and Moody National International-Fort Worth MT, LLC, a Delaware limited liability company,
dated [July 31], 2017.

 

“Hotel
Property” or “Hotel Properties” Individually or collectively as the context may require, the Lyndhurst Property
and the Fort Worth Property.

 

“Hotel
Property Owner” or “Hotel Property Owners” Individually or collectively as the context may require, Moody
National 1 Polito Lyndhurst Holding, LLC, a Delaware limited liability company, and Moody National International-Fort Worth Holding,
LLC, a Delaware limited liability company.

 

“Hotel
Transactions” (i) Occupancy arrangements for customary hotel transactions in the ordinary course of a Credit Party’s
or Master Tenant’s business conducted at the Mortgaged Property, including nightly rentals (or licensing) of individual
hotel rooms or suites, banquet room use and food and beverage services, and (ii) informational or guest services that are terminable
on one month’s notice or less without cause and without penalty or premium, including co-marketing, promotional services
and outsourced services.

 

“Implied
Debt Service” On any date of determination, a hypothetical annual principal and interest payment on a loan amount equal
to the then aggregate outstanding principal amount of the Loan, with interest accruing at an interest rate equal to (a) the greatest
of (1) six percent (6.0%), or (2) the then current annual yield on ten (10) year obligations issued by the United States Treasury
most recently prior to the date of determination as determined by the Agent plus two and one half percent (2.50%), and (b) principal
amortizing over thirty (30) years.

 

“Indebtedness”
With respect to a Person, at the time of computation thereof, all of the following (without duplication) on a Consolidated basis
all indebtedness, obligations or liabilities (whether matured or unmatured, liquidated or unliquidated, direct or indirect, absolute
or contingent or joint or several) of such Person in respect of: the sum of (without duplication) (i) all indebtedness (including
principal, interest, fees and charges) for borrowed money (including obligations evidenced by bonds, notes or similar instruments)
and for the deferred purchase price of property or services (excluding ordinary payable and accrued expenses and deferred purchase
price which is not yet a liquidated sum) and reimbursement obligations with respect to letters of credit or acceptances, (ii)
the aggregate amount of all Capitalized Lease liabilities, (iii) all indebtedness of the types described in clause (i) or (ii)
of this definition of persons other than REIT and its consolidated Subsidiaries secured by any lien on any property owned by REIT
or any of its consolidated Subsidiaries, whether or not such indebtedness has been assumed by such person (provided that, if the
person has not assumed or otherwise become liable in respect of such indebtedness, such indebtedness shall be deemed to be the
outstanding principal amount (or maximum principal amount, if larger) of such indebtedness or, if not stated or if indeterminable,
in an amount equal to the fair market value of the property to which such lien relates, as determined in good faith by such person),
(iv) all contingent obligations, (v) obligations under forward equity commitments and Off-Balance Sheet Obligations and (vi) the
Derivative Termination Value (if negative) of all indebtedness in respect of Derivatives Contracts. “Indebtedness”
shall be adjusted to remove any impact of intangibles pursuant to ASC 805, as codified by the Financial Accounting Standards Board
in June of 2009, and shall be adjusted to remove (a) the impact from Asset Retirement Obligations pursuant to ASC 410, as codified
by the Financial Accounting Standards Board in June of 2009, and (b) any potential or actual impact from the Financial Accounting
Standards Board Accounting Standard-Leases (ASC 842) issued February 25, 2016.

 

    14

     

    

 

“Indemnity
Agreements” The Environmental Indemnity regarding Hazardous Substances made by the Borrower and each Guarantor in favor
of the Agent and the Lenders, as the same may be modified or amended.

 

“Initial
Maturity Date” shall mean September [___], 2018, or such earlier date on which the Loan becomes due and payable pursuant
to the terms hereof.

 

“Insurance
Proceeds” All insurance proceeds, damages and claims and the right thereto under any insurance policies relating to
any portion of any Collateral, net of all reasonable and customary amounts actually expended to collect the same and/or to maximize
the total amount of the same.

 

“Interest
Payment Date” The tenth (10th) day of each calendar month.

 

“Interest
Period” With respect to each LIBOR Rate Loan (a) initially, the period commencing on the Drawdown Date of such LIBOR
Rate Loan and ending one, two, three or six months thereafter (subject to availability from each Lender), and (b) thereafter,
each period commencing on the day following the last day of the next preceding Interest Period applicable to such Loan and ending
on the last day of one of the periods set forth above, as selected by the Borrower in a Conversion/Continuation Request; provided that all of the foregoing provisions relating to Interest Periods are subject to the following:

 

(i)       if
any Interest Period with respect to a LIBOR Rate Loan would otherwise end on a day that is not a LIBOR Business Day, such Interest
Period shall end on the next succeeding LIBOR Business Day, unless such next succeeding LIBOR Business Day occurs in the next
calendar month, in which case such Interest Period shall end on the next preceding LIBOR Business Day, as determined conclusively
by the Agent in accordance with the then current bank practice in London, England;

 

(ii)       if
the Borrower shall fail to give notice as provided in §4.1, the Borrower shall be deemed to have requested a continuation
of the affected LIBOR Rate Loan as a LIBOR Rate Loan for an interest period of one month on the last day of the then current Interest
Period with respect thereto as provided in and subject to the terms of §4.1(c);

 

(iii)       any
Interest Period pertaining to a LIBOR Rate Loan that begins on the last Business Day of a calendar month (or on a day for which
there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business
Day of the applicable calendar month; and

 

    15

     

    

 

(iv)       no
Interest Period relating to any LIBOR Rate Loan shall extend beyond the Maturity Date.

 

“Interpolated
Rate” At any time, for any Interest Period, the rate per annum (rounded to the same number of decimal places as LIBOR)
determined by the Lender (which determination shall be conclusive and binding absent manifest error) to be equal to the rate that
results from interpolating on a linear basis between: (a) LIBOR for the longest period for which the LIBOR is available that is
shorter than the Impacted Interest Period; and (b) the LIBOR for the shortest period for which that LIBOR is available that exceeds
the Impacted Interest Period, in each case, at such time.

 

“Investments”
With respect to any Person, all shares of capital stock, evidences of Indebtedness and other securities issued by any other Person
and owned by such Person, all loans, advances, or extensions of credit to, or contributions to the capital of, any other Person,
all purchases of the securities or business or integral part of the business of any other Person and commitments and options to
make such purchases, all interests in real property, and all other investments; provided, however, that the term
“Investment” shall not include (i) equipment, inventory and other tangible personal property acquired in the ordinary
course of business, or (ii) current trade and customer accounts receivable for services rendered in the ordinary course of business
and payable in accordance with customary trade terms. In determining the aggregate amount of Investments outstanding at any particular
time: (a) there shall be included as an Investment all interest accrued with respect to Indebtedness constituting an Investment
unless and until such interest is paid; (b) there shall be deducted in respect of each Investment any amount received as a return
of capital; (c) there shall not be deducted in respect of any Investment any amounts received as earnings on such Investment,
whether as dividends, interest or otherwise, except that accrued interest included as provided in the foregoing clause (a) may
be deducted when paid; and (d) there shall not be deducted in respect of any Investment any decrease in the value thereof.

 

“KeyBank”
As defined in the preamble hereto.

 

“Leases”
Leases, licenses and agreements, whether written or oral, relating to the use or occupation of space in any Building or of any
Real Estate, excluding, for the purposes hereof, all Hotel Transactions.

 

“Lender”
Collectively, the Lenders which have a Commitment.

 

“Lenders”
KeyBank, the other lending institutions which are party hereto and any other Person which becomes an assignee of any rights of
a Lender pursuant to §18 (but not including any participant as described in §18), the initial Lenders being identified
on Schedule 1.1 hereto.

 

“Lender
Hedge Provider” As may be applicable at any time with respect to any Hedge Obligations, any counterparty thereto that,
at the time the applicable hedge agreement was entered into, was a Lender, the Agent or an Affiliate thereof.

 

    16

     

    

 

“LIBOR”
For any LIBOR Rate Loan for any Interest Period, the London interbank offered rate as administered by ICE Benchmark Administration
(or any other Person that takes over the administration of such rate for U.S. Dollars) for a period equal in length to such Interest
Period as displayed on pages LIBOR01 or LIBOR02 of the Reuters screen that displays such rate (or, in the event such rate does
not appear on a Reuters page or screen, on any successor or substitute page on such screen that displays such rate, or on the
appropriate page of such other information service that publishes such rate from time to time as selected by the Lender in its
reasonable discretion; in each case the “LIBOR Screen Rate”) at approximately 11:00 a.m., London time, two (2) Business
Days prior to the commencement of such Interest Period; provided that (i) if the LIBOR Screen Rate shall be less than zero, such
rate shall be deemed to be zero for the purposes of this Agreement; provided further that if the LIBOR Screen Rate shall not be
available at such time for such Interest Period (an “Impacted Interest Period”) then the LIBOR shall be the Interpolated
Rate; provided that if any Interpolated Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this
Agreement, and (ii) if no such rate administered by ICE Benchmark Administration (or by such other Person that has taken over
the administration of such rate for U.S. Dollars) is available to the Lender, the applicable LIBOR for the relevant Interest Period
shall instead be the rate determined by the Lender to be the rate at which KeyBank or one of its Affiliate banks offers to place
deposits in U.S. dollars with first class banks in the London interbank market at approximately 11:00 a.m. (London time) two (2)
Business Days prior to the first day of such Interest Period, in the approximate amount of the relevant Eurodollar Loan and having
a maturity equal to such Interest Period.

 

“LIBOR
Business Day” Any day on which commercial banks are open for international business (including dealings in Dollar deposits)
in London, England.

 

“LIBOR
Lending Office” Initially, the office of each Lender designated as such on Schedule 1.1 hereto; thereafter, such
other office of such Lender, if any, that shall be making or maintaining LIBOR Rate Loans.

 

“LIBOR
Rate Loans” Loans bearing interest calculated by reference to LIBOR.

 

“Lien”
See §8.2.

 

“Loan”
or “Loans” An individual loan or the aggregate loans, as the case may be in the maximum principal amount of
Seventy Million and 00/100 Dollars ($70,000,000.00) to be made by the Lenders hereunder as more particularly described in §2.

 

“Loan
Documents” This Agreement, the Notes, the Security Documents, the Indemnity Agreement, the Subordination and Attornment
Agreements, comfort letters, and all other documents, instruments or agreements now or hereafter executed or delivered by or on
behalf of the Credit Parties in connection with the Loan.

 

“Lyndhurst
Property” The 227 room Courtyard Lyndhurst Meadowlands hotel located at 1 Polito Avenue, Lyndhurst, New Jersey.

 

“Management
Agreements” Written agreements providing for the management of the Mortgaged Properties or any of them, including, without
limitation, individually or collectively as the context may imply, that certain Hotel Management Agreement by and between Moody
National CY Lyndhurst MT, LLC, a Delaware limited liability company, and Moody National Hospitality Management, LLC, a Texas limited
liability company, dated September 30, 2014, as amended, and that certain Hotel Management Agreement by and between Moody National
International-Fort Worth MT, LLC, a Delaware limited liability company, and Moody National Hospitality Management, LLC, a Texas
limited liability company, dated December 18, 2015, as amended.

 

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“Management
Fees” means, for any Hotel Property a deemed base management fee in an amount equal to the greater of the actual management
fees payable and four percent (4%) of Gross Hotel Revenues.

 

“Master
Lease Subordination Agreement” With respect to each Hotel Lease, Agent shall have received a fully-executed Master
Lease Subordination Agreement between the applicable Master Tenant and Agent, consented to by the applicable Hotel Property Owner,
which shall be in form and substance satisfactory to Administrative Agent.

 

“Master
Tenant” or “Master Tenants” Individually or collectively as the context may imply, Moody National
CY Lyndhurst MT, LLC, a Delaware limited liability company, and Moody National International-Fort Worth MT, LLC, a Delaware limited
liability company.

 

“Material
Adverse Effect” A material adverse effect on (a) the business, properties, assets, financial condition or results of
operations of Borrower and its Subsidiaries, considered as a whole; (b) the ability of Borrower or any Subsidiary Guarantor to
perform any of its material obligations under the Loan Documents; or (c) the validity or enforceability of any of the Loan Documents
or the material rights or remedies of Agent or the Lenders thereunder.

 

“Maturity
Date” The Initial Maturity Date, as such date may be extended as provided in §2.7, or such earlier date on which
the Loan shall become due and payable pursuant to the terms hereof.

 

“Moody’s”
Moody’s Investor Service, Inc.

 

“Mortgaged
Assets Leverage Ratio” means the outstanding principal balance of the Loan divided by the aggregate Hotel Asset Value
attributable to the Mortgaged Properties.

 

“Mortgaged
Assets Mortgageability Amount” means the maximum principal amount that would not cause the Debt Service Coverage Ratio
to be less than to 1.40:1.0.

 

“Mortgaged
Property or Mortgaged Properties” The Hotel Properties which are security for the Obligations and any Hedge Obligations
pursuant to the Mortgages.

 

“Mortgaged
Property Controlled Account” See §7.17(a)(i).

 

“Mortgaged
Property Owner” means each direct or indirect Subsidiary (which Subsidiary shall be an entity formed under the laws
of the United States of America or one of the several states thereof) of the Borrower that owns a Mortgaged Property.

 

“Mortgages”
The Mortgages, Deeds to Secure Debt and/or Deeds of Trust from a Subsidiary Guarantor to the Agent for the benefit of the Lenders
(or to trustees named therein acting on behalf of the Agent for the benefit of the Lenders) delivered to the Agent to secure the
Obligations, as the same may be modified or amended.

 

“Multiemployer
Plan” Any multiemployer plan within the meaning of §3(37) of ERISA maintained or contributed to by any Credit Party.

 

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“Net
Equity” means the gross offering proceeds of Equity Issuances by the REIT, the Borrower (other than the issuance by
Borrower of units, in exchange for interests in real property) or any Subsidiary (other than issuances of Equity Interests of
any Subsidiary in exchange for interests in real property, or equity issued by a Subsidiary of the REIT in exchange for funds
invested (directly or indirectly) in such Subsidiary by the REIT) less reasonable total offering costs, including, but not limited
to all reasonable legal fees, filing fees, printing fees and accounting fees and expenses.

 

“Net
Operating Income” means, on any determination date, an amount equal to the total Gross Hotel Revenue of a Hotel Property
for such period, minus the amount of all expenses incurred in connection with and directly attributable to the ownership and operation
of such Hotel Property for such period, including without limitation, Management Fees, franchise fees and amounts accrued for
the payment of ground rent, real estate taxes and insurance premiums, but excluding any general and administrative expenses, impairment
charges and any non-cash charges such as depreciation or amortization of financing costs related to the operation of the Hotel
Property.

 

“Net
Proceeds” Means (a) with respect to any Refinanced Indebtedness, one hundred percent (100%) of any proceeds of the refinancing
in excess of all amounts (including interest, prepayment fees and premiums) the Refinanced Indebtedness outstanding immediately
prior to such refinancing, (b) with respect to the financing or sale of any Real Estate or assets of a Credit Party, one hundred
percent (100%) of the actual gross sales price under the applicable purchase and sale agreement with respect to such Real Estate
or asset less (c) in each case, for clause (a) and (b) above, actual customary, reasonable, and documented closing costs and expenses
(including reasonable and documented sales costs, commitment fees, commissions, legal fees and transfer taxes), (d) excess proceeds
of any casualty or condemnation of a Mortgaged Property not utilized for reconstruction in accordance with the terms hereof, less
(e) in the case of clause (b) above, the payment of principal, premium, penalty interest or other amounts in respect of Indebtedness
secured by the Real Estate or other asset that is the subject of such sale.

 

“Non-Consenting
Lender” Any Lender that does not approve any consent, waiver or amendment that (a) requires the approval of all or all
affected Lenders in accordance with the terms of the second sentence of §27 and (b) has been approved by the Required Lenders.

 

“Non-Excluded
Taxes” See §4.4(b).

 

“Notes”
See §2.2.

 

“Notice”
See §19.

 

“Obligations”
The term “Obligations” shall mean and include:

 

A.       The
payment of the principal sum, interest (including any interest accruing after the filing of any petition in bankruptcy or the
commencement of any insolvency, reorganization or like proceeding relating to the Borrower, whether or not a claim for post-filing
or post-petition interest is allowed in such proceeding) at variable rates, charges and indebtedness owing by the Credit Parties
to the Agent, any Lender, or any Arrangers pursuant to or in connection with this Agreement or any other Loan Document or otherwise
with respect to the Loan, whether or not evidenced by the Note, including any extensions, renewals, replacements, increases, modifications
and amendments thereof, given by Borrower to the order of the respective Lenders;

 

    19

     

    

 

B.       The
payment, performance, discharge and satisfaction of each covenant, warranty, representation, undertaking and condition to be paid,
performed, satisfied and complied with by Credit Parties under and pursuant to this Agreement or the other Loan Documents;

 

C.       The
payment of all costs, expenses, legal fees and liabilities incurred by Agent and the Lenders in connection with the enforcement
of any of Agent’s or any Lender’s rights or remedies under this Agreement or the other Loan Documents, or any other
instrument, agreement or document which evidences or secures any other obligations or collateral therefor, whether now in effect
or hereafter executed; and

 

D.       The
payment, performance, discharge and satisfaction of all other liabilities and obligations of any Credit Party to Agent or any
Lender, whether now existing or hereafter arising, direct or indirect, absolute or contingent, and including, without limitation
express or implied upon the generality of the foregoing, each liability and obligation of any Credit Party under any one or more
of the Loan Documents and any amendment, extension, modification, replacement or recasting of any one or more of the instruments,
agreements and documents referred to in this Agreement or any other Loan Document or executed in connection with the transactions
contemplated by this Agreement or any other Loan Document, and further including any Hedge Obligations (but excluding, as to any
Credit Party, any Excluded Swap Obligation with respect to such Credit Party).

 

“OFAC”
Office of Foreign Asset Control of the Department of the Treasury of the United States of America.

 

“Off-Balance
Sheet Obligations” Liabilities and obligations of Borrower, any Subsidiary or any other Person in respect of “off-balance
sheet arrangements” (as defined in the SEC Off-Balance Sheet Rules) which Borrower would be required to disclose in the
“Management’s Discussion and Analysis of Financial Condition and Results of Operations” section of Borrower’s
report on Form 10-Q or Form 10-K (or their equivalents) which Borrower is required to file with the SEC or would be required to
file if it were subject to the jurisdiction of the SEC (or any Governmental Authority substituted therefor having jurisdiction
over Borrower). As used in this definition, the term “SEC Off-Balance Sheet Rules” means the Disclosure in Management’s
Discussion and Analysis About Off-Balance Sheet Arrangements, Securities Act Release No. 33-8182, 68 Fed. Reg. 5982 (Feb. 5, 2003)
(codified at 17 CFR pts. 228, 229 and 249).

 

Other
Deposit Accounts. (a) Account number 5501044548 maintained by the REIT with Green Bank for receipt of the proceeds of all
Equity Issuances, (b) Account number 639632731 maintained by Moody National CY Lyndhurst MT, LLC, with JPMorgan Chase Bank, and
(c) Account number 792975612 maintained by Moody National International-Fort Worth MT, LLC, with JPMorgan Chase Bank.

 

“Outstanding”
With respect to the Loan, the aggregate unpaid principal thereof as of any date of determination.

 

“Outstanding
Balance” For any day, the aggregate Outstanding of the Loan.

 

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“Overnight
Rate” For any day, the Federal Funds Effective Rate.

 

“Ownership
Interest Pledges” The Pledge and Security Agreement (Ownership Interests) from (i) Borrower, (ii) the REIT, and (iii)
any Subsidiary of Borrower which has an intervening ownership interest in another Subsidiary of Borrower, respectively, as pledgor,
to the Agent for the benefit of the Lenders respecting the “Collateral” as therein defined and described, including,
without limitation, all “Pledged Ownership Interests” (as therein defined) respecting each pledgor’s
maximum allowable percentage ownership interest, respectively, to and in the Equity Interests in such pledgor’s Subsidiaries
for which such pledgor is able (and/or not prohibited) to grant such Ownership Interest Pledge therein (as reasonably determined
in good faith), whether now existing or hereafter arising, as further provided therein, respectively, now or hereafter delivered
to secure the Obligations, as the same may be modified or amended. The initial Collateral granted pursuant to the Ownership Interest
Pledges as of the Closing Date is detailed on Schedule 1.1-C.

 

“Patriot
Act” The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism
Act of 2001, as the same may be amended from time to time, and corresponding provisions of future laws.

 

“PBGC”
The Pension Benefit Guaranty Corporation created by §4002 of ERISA and any successor entity or entities having similar responsibilities.

 

“Permitted
Liens” Liens, security interests and other encumbrances permitted by §8.2.

 

“Person”
Any individual, corporation, limited liability company, partnership, trust, unincorporated association, or other legal entity,
and any government or any governmental agency or political subdivision thereof.

 

“PIP
Costs” All costs and expenses incurred with respect to completion by the Credit Parties of obligations with respect
to any Property Improvement Plans.

 

“PIP
Requirements” All improvements and work to be completed to satisfy the requirements of a Property Improvement Plan.

 

“PIP
Reserve” See §7.18(c)(v).

 

“Plan”
Any employee benefit plan subject to Part 4, Subtitle B, Title I of ERISA, whether now in existence or hereafter instituted, of
Borrower or any ERISA Affiliate.

 

“Pledge
Agreements” Individually or collectively as the context may imply, the Ownership Interest Pledges and the Distribution
Interest Pledges.

 

“Property
Improvement Plans” The property improvement plans detailed for each parcel of Real Estate as further set forth on Schedule
PIP.

 

“Property
Party” Each Credit Party and each Master Tenant.

 

“Qualified
ECP Party” In respect of any interest rate cap, swap or other hedging obligation, each Person which is a Credit Party
that has total assets exceeding $10,000,000 at the time such Credit Party’s guarantee and/or other credit or collateral
support, of such interest rate cap, swap or other hedging obligation becomes effective, or otherwise constitutes an “eligible
contract participant” under the Commodity Exchange Act or any regulations promulgated thereunder.

 

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“Rate
Cap” See §10.15.

 

“Real
Estate” All real property (including one or more condominium units created by the submission of such real property to
a condominium regime pursuant to Applicable Law) at any time owned or leased (as lessee or sublessee) by a Credit Party, or their
respective subsidiaries, including, without limitation, the Mortgaged Properties, but excluding any headquarter/office administrative
space leased by the REIT.

 

“Refinanced
Indebtedness” Indebtedness issued in exchange for, or the net proceeds of which are used to modify, extend, refinance,
renew, replace or refund existing Indebtedness.

 

“Register”
See §18.2.

 

“Reimbursement
Contribution” See §37(b).

 

“REIT”
Moody National REIT II, Inc., a Maryland corporation.

 

“Release”
See §6.20(c).

 

“Replacement
Loan” See §38.1.

 

“Representative”
See §14.17.

 

“Required
Lenders” As of any date, (a) at any time there are two or fewer Lenders (other than Defaulting Lenders), each Lender,
and (b) at all other times, the Lender or Lenders whose aggregate Commitment Percentage is equal to or greater than sixty six
and two-thirds percent (66 2/3%) of the Total Commitment; provided that in determining said percentage at any given time, all
then existing Defaulting Lenders will be disregarded and excluded and the Commitment Percentages of the Lenders shall be redetermined
for voting purposes only to exclude the Commitment Percentages of such Defaulting Lenders.

 

“Reserve
Percentage” For any Interest Period, that percentage which is specified three (3) Business Days before the first day
of such Interest Period by the Board of Governors of the Federal Reserve System (or any successor) or any other governmental or
quasi-governmental authority with jurisdiction over Agent or any Lender for determining the maximum reserve requirement (including,
but not limited to, any marginal reserve requirement) for Agent or any Lender with respect to liabilities constituting of or including
(among other liabilities) Eurocurrency liabilities in an amount equal to that portion of the Loan affected by such Interest Period
and with a maturity equal to such Interest Period.

 

“Restricted
Payment” (a) any dividend or other distribution, direct or indirect, on account of any Equity Interest of the REIT
or any of its Subsidiaries now or hereafter outstanding, except (i) a dividend payable solely in shares of that class of Equity
Interests to the holders of that class, or (ii) issuance by the REIT of shares for conversions of units in the Borrower; (b) any
redemption, conversion, exchange, retirement, sinking fund or similar payment, purchase or other acquisition for value, direct
or indirect, of any Equity Interests of the REIT or any of its Subsidiaries now or hereafter outstanding and (c) any payment
made to retire, or to obtain the surrender of, any outstanding warrants, options or other rights to acquire any Equity Interests
of the REIT or any of its Subsidiaries now or hereafter outstanding.

 

    22

     

    

 

Sanction(s).
Any sanction administered or enforced by the United States Government (including without limitation, OFAC), the United Nations
Security Council, the European Union, Her Majesty’s Treasury or other relevant sanctions authority, in each case, solely
to the extent applicable to the Credit Parties or any of their Subsidiaries.

 

“Sanctioned
Person” (a) A Person named on the list of “Specially Designated Nationals and Blocked Persons” maintained
by OFAC available at http://www.treasury.gov/resource-center/sanctions/SDN-List/Pages/default.aspx, or as otherwise published
from time to time, or (b)(i) the government of a Designated Jurisdiction or an agency of the government of a Designated Jurisdiction,
(ii) an organization controlled by a Designated Jurisdiction or organized under the laws of a Designated Jurisdiction, or (iii)
an individual ordinarily resident in a Designated Jurisdiction.

 

“SEC”
The United States Securities and Exchange Commission.

 

“Security
Documents” Collectively, each Mortgage, Assignment of Leases and Rents, Assignment of Contracts, Assignment of Management
Agreement, Account Pledge Agreement, Pledge Agreement, UCC-1 financing statement and any further collateral assignments to the
Agent for the benefit of the Lenders and the Lender Hedge Providers.

 

“S&P”
Standard & Poor’s Ratings Group.

 

“Specified
Party” See §7.23.

 

“State”
A state of the United States of America and the District of Columbia.

 

“Subordination
and Attornment Agreement” An agreement among the Agent, a Borrower and a Master Tenant under a Lease pursuant to which
such tenant agrees to subordinate its rights under the Lease to the lien or security title of the applicable Mortgage and agrees
to recognize the Agent or its successor in interest as landlord under the Lease in the event of a foreclosure under such Mortgage,
such agreement to be in form and substance reasonably satisfactory to Agent.

 

“Subsidiary”
For any Person, any corporation, partnership, limited liability company or other entity of which at least a majority of the securities
or other ownership interests having by the terms thereof ordinary voting power to elect a majority of the board of directors or
other persons performing similar functions of such corporation, partnership, limited liability company or other entity (without
regard to the occurrence of any contingency) is at the time directly or indirectly owned or controlled by such Person or one or
more Subsidiaries of such Person or by such Person and one or more Subsidiaries of such Person, and shall include all Persons
the accounts of which are consolidated with those of such Person and reported on a consolidating basis pursuant to GAAP.

 

“Subsidiary
Guarantor” means MN REIT II TRS, Inc., a Delaware corporation, Moody National 1 Polito Lyndhurst Holding, LLC, a Delaware
limited liability company, MN Lyndhurst Venture, LLC, a Delaware limited liability company, Moody National CY Lyndhurst MT, LLC,
a Delaware limited liability company, Moody National International-Fort Worth Holding, LLC, a Delaware limited liability company,
MN Fort Worth Venture, LLC, a Delaware limited liability company, Moody National International-Fort Worth MT, LLC, a Delaware
limited liability company and each other Subsidiary of the Borrower (which Subsidiary shall be an entity formed under the laws
of the United States of America or one of the several states thereof) that directly or indirectly owns a Mortgaged Property.

 

    23

     

    

 

“Survey”
An instrument survey of each parcel of Mortgaged Property prepared by a registered land surveyor which shall show the location
of all buildings, structures, easements and utility lines on such property, shall be sufficient to remove the standard survey
exception from the Title Policy, shall show that all buildings and structures are within the lot lines of the Mortgaged Property
and shall not show any encroachments by others (or to the extent any encroachments are shown, such encroachments shall be acceptable
to the Agent in its reasonable discretion), shall show rights of way, adjoining sites, establish building lines and street lines,
the distance to and names of the nearest intersecting streets and such other details as the Agent may reasonably require; and
shall show whether or not the Mortgaged Property is located in a flood hazard district as established by the Federal Emergency
Management Agency or any successor agency or is located in any flood plain, flood hazard or wetland protection district established
under federal, state or local law and shall otherwise be in form and substance reasonably satisfactory to the Agent.

 

“Surveyor
Certification” With respect to each parcel of Mortgaged Property, a certificate executed by the surveyor who prepared
the Survey with respect thereto, dated as of a recent date and containing such information relating to such parcel as the Agent
may reasonably require, such certificate to be reasonably satisfactory to the Agent in form and substance.

 

“Swap
Obligation” Any Hedge Obligation that constitutes a “swap” within the meaning of section 1a(47) of the Commodity
Exchange Act, as amended from time to time.

 

“Taking”
The taking or appropriation (including by deed in lieu of condemnation) of any Mortgaged Property, or any part thereof or interest
therein, whether permanently or temporarily, for public or quasi-public use under the power of eminent domain, by reason of any
public improvement or condemnation proceeding, or in any other manner or any damage or injury or diminution in value through condemnation,
inverse condemnation or other exercise of the power of eminent domain.

 

“Tax
and Insurance Reserve” See §7.18(c)(ii).

 

“Taxes”
Any present or future taxes, levies, imposts, duties, charges, fees, or similar deductions or withholdings that are imposed by
any Governmental Authority.

 

“Title
Insurance Company” Any title insurance company or companies approved by the Agent and the Borrower.

 

“Title
Policy” With respect to each parcel of Mortgaged Property, an ALTA standard form title insurance policy (or, if such
form is not available, an equivalent, legally promulgated form of mortgagee title insurance policy reasonably acceptable to the
Agent) issued by a Title Insurance Company (with such reinsurance as the Agent may reasonably require, any such reinsurance to
be with direct access endorsements to the extent available under Applicable Law) in an amount as the Agent may reasonably require
based upon the fair market value of the applicable Mortgaged Property insuring the priority of the Mortgage thereon and that a
Subsidiary Guarantor holds fee simple title or a valid and subsisting leasehold interest to such parcel, subject only to the encumbrances
acceptable to Agent in its reasonable discretion and which shall not contain standard exceptions for mechanics liens, persons
in occupancy (other than Master Tenants and liens for taxes not yet due and payable) or matters which would be shown by a survey,
shall not insure over any matter except to the extent that any such affirmative insurance is acceptable to the Agent in its reasonable
discretion, and shall contain if available in the State in which the Real Estate is located, such endorsements and affirmative
insurance as the Agent may reasonably require, including but not limited to (i) a comprehensive endorsement, (ii) a variable rate
of interest endorsement, (iii) a usury endorsement, (iv) a doing business endorsement, (v) an ALTA form 3.1 zoning endorsement,
(vi) a “tie-in” endorsement relating to all Title Policies issued by such Title Insurance Company in respect of other
Mortgaged Property, (vii) a “first loss” endorsement, and (viii) a utility location endorsement.

 

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“Total
Commitment” The Total Commitment is Seventy Million and 00/100 Dollars ($70,000,000.00).

 

“Type”
As to any Loan, its nature as a Base Rate Loan or a LIBOR Rate Loan.

 

“Unconsolidated
Affiliate” With respect to any Person, any other Person in whom such Person holds an Investment, which Investment is
accounted for in the financial statements of such Person on an equity basis of accounting and whose financial results would not
be consolidated under GAAP with the financial results of such Person on the consolidated financial statements of such Person.

 

“Write-Down
and Conversion Powers” With respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA
Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which writedown and
conversion powers are described in the EU Bail-In Legislation Schedule.

 

		§1.2	Rules
of Interpretation.

 

(a)       A
reference to any document or agreement shall include such document or agreement as amended, modified or supplemented from time
to time in accordance with its terms and the terms of this Agreement.

 

(b)       The
singular includes the plural and the plural includes the singular.

 

(c)       A
reference to any law includes any amendment or modification of such law.

 

(d)       A
reference to any Person includes its permitted successors and permitted assigns.

 

(e)       Accounting
terms not otherwise defined herein have the meanings assigned to them by GAAP applied on a consistent basis by the accounting
entity to which they refer.

 

(f)       The
words “include”, “includes” and “including” are not limiting.

 

(g)       The
words “approval” and “approved”, as the context requires, means an approval in writing given to the party
seeking approval after full and fair disclosure to the party giving approval of all material facts necessary in order to determine
whether approval should be granted.

 

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(h)       All
terms not specifically defined herein or by GAAP, which terms are defined in the Uniform Commercial Code as in effect in the State
of New York, have the meanings assigned to them therein.

 

(i)       Reference
to a particular “§”, refers to that section of this Agreement unless otherwise indicated.

 

(j)       The
words “herein”, “hereof”, “hereunder” and words of like import shall refer to this Agreement
as a whole and not to any particular section or subdivision of this Agreement.

 

(k)       In
the event of any change in generally accepted accounting principles after the date hereof or any other change in accounting procedures
pursuant to §7.3 which would affect the computation of any financial covenant, ratio or other requirement set forth in any
Loan Document, then upon the request of Borrower or Agent, the Borrower, the Agent and the Lenders shall negotiate promptly, diligently
and in good faith in order to amend the provisions of the Loan Documents such that such financial covenant, ratio or other requirement
shall continue to provide substantially the same financial tests or restrictions of the Credit Parties as in effect prior to such
accounting change, as determined by the Agent and the Required Lenders in their good faith judgment. Until such time as such amendment
shall have been executed and delivered by the Borrower, the Agent and the Required Lenders, such financial covenants, ratio and
other requirements, and all financial statements and other documents required to be delivered under the Loan Documents, shall
be calculated and reported as originally defined or specified herein without in any way giving effect to such change, as if such
change had not occurred.

 

	§2.	THE CREDIT FACILITY.

 

§2.1
           Commitment to Lend. Subject to other terms and conditions
set forth in this Agreement, each Lender agrees to make a term Loan to the Borrower on the Closing Date in an amount not to exceed
such Lender’s Commitment. The Loan shall be made pro rata in accordance with each Lender’s Commitment Percentage.
Upon funding of the Loan on the Closing Date, each Lender’s Commitment shall terminate. The Borrower may not re-borrow any
portion of the Loan which is repaid.

 

§2.2
           Notes. The Loan shall, if requested by a Lender,
be evidenced by separate promissory notes of the Borrower in substantially the form of Exhibit A hereto (collectively,
the “Notes”), dated of even date with this Agreement (except as otherwise provided in §18.3) and completed with
appropriate insertions. One Note shall be payable to the order of each Lender which so requests the issuance of a Note in the
principal amount equal to such Lender’s Commitment.

 

		§2.3	Interest
                                         on the Loan.

 

(a)       Each
Base Rate Loan shall bear interest for the period commencing with the Drawdown Date thereof and ending on the date on which such
Base Rate Loan is repaid or converted to a LIBOR Rate Loan at the rate per annum equal to the sum of the Base Rate plus the Applicable
Margin for Base Rate Loans.

 

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(b)       Each
LIBOR Rate Loan shall bear interest for the period commencing with the Drawdown Date thereof and ending on the last day of each
Interest Period with respect thereto at the rate per annum equal to the sum of LIBOR determined for such Interest Period plus
the Applicable Margin for LIBOR Rate Loans.

 

(c)       The
Borrower promises to pay interest on the Loan in arrears on each Interest Payment Date.

 

(d)       Base
Rate Loans and LIBOR Rate Loans may be converted to Loans of the other Type as provided in §4.1.

 

		§2.4	[Intentionally
                                         Omitted].

 

		§2.5	[Intentionally
                                         Omitted].

 

§2.6            Use
of Proceeds. The Credit Parties will use the proceeds of the Loan solely (a) to pay closing and other costs incurred in connection
with this Agreement; (b) to pay or reimburse themselves for third party out of pocket costs actually incurred in connection with
the acquisition of Moody National REIT I, Inc. by the REIT (the “Acquisition”), (c) to repay Existing Mortgage
Debt, and (d) for other purposes approved by Agent. Borrower hereby represents and warrants to Agent and the Lenders that attached
hereto as Exhibit 2.6 if a true correct and complete copy of the sources and uses in connection with the Acquisition.

 

§2.7           
Extension of Maturity Date. The Borrower shall have the right and option to extend the Maturity Date for a one period of six (6)
months, to March [___], 2019, upon satisfaction or waiver of the following conditions precedent, which must be satisfied prior
to the effectiveness of any extension of the Maturity Date:

 

(a)       Extension
Request. The Borrower shall deliver written notice of such request (the “Extension Request”) to the Agent
not earlier than the date which is ninety (90) days and not later than the date which is forty-five (45) days prior to the Initial
Maturity Date.

 

(b)       Payment
of Extension Fee. The Borrower shall pay to the Agent an extension fee in an amount equal to 0.50% of the outstanding principal
balance of the Loan on the Initial Maturity Date, which fee shall, when paid, be fully earned and non-refundable under any circumstances.

 

(c)       No
Default. On the date the Extension Request is given and (ii) the effective date of such extension there shall exist no Default
or Event of Default.

 

(d)       Representations
and Warranties. The representations and warranties made by or on behalf of the Credit Parties contained in this Agreement
or the other Loan Documents shall be true in all material respects on the effective date of the extension (except to the extent
that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in
all material respects as of such earlier date).

 

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(e)       Reimbursement.
The Borrower shall pay to Agent any outstanding fees and expenses then due to Agent and the Borrower shall reimburse the Agent
for any costs and expenses related to the extension of the Maturity Date.

 

(f)       Consolidated
Leverage Ratio. The Consolidated Leverage Ratio shall not exceed sixty percent (60%).

 

(g)       The
outstanding principal balance of the Loan shall not exceed the lesser of (i) the Mortgaged Assets Mortgageability Amount or (ii)
an amount which would result in a Mortgaged Assets Leverage Ratio of percent (60%). The Borrower shall have the right to pay down
the Loan in such amount as is sufficient to satisfy the requirements of this §2.7(g).

 

(h)       After
giving effect to such extension, the Credit Parties, as applicable, shall be in compliance with each of the covenants in §9.

 

(i)       Each
of the foregoing conditions are satisfied not later than, and on, the Initial Maturity Date.

 

		§3.	REPAYMENT OF THE LOAN.

 

§3.1
           Stated Maturity. The Borrower promises to pay on
the Maturity Date, and there shall become absolutely due and payable on the Maturity Date, the Outstanding Balance, together with
any and all accrued and unpaid interest thereon and all other Obligations.

 

§3.2
           Mandatory Prepayments. Any and all Net Proceeds
of a Capital Event when received by, or otherwise payable to, the applicable Credit Party or its Subsidiary shall be paid to Agent
in reduction of the then outstanding principal balance of the Loan, as mandatory prepayments hereunder, together with any additional
amounts payable pursuant to §4.8 (it being understood that any such payment by or on behalf of a Credit Party or any of its
Subsidiaries will be subject to the terms and provisions of any loan document or other agreement (including any operating agreement
or other charter document) to which such Credit Party or Subsidiary is subject). In the event there shall have occurred a casualty
with respect to any Mortgaged Property and the Borrower is required to repay the Loan, or a portion thereof, pursuant to §7.7
or a Taking and the Borrower is required to repay the Loan pursuant to a Mortgage or §7.7, the Borrower shall prepay the
Loan concurrently with the date of receipt by Borrower or the Agent of any Insurance Proceeds or Condemnation Proceeds in respect
of such casualty or Taking, as applicable, or as soon thereafter as is reasonably practicable, in the amount required pursuant
to the relevant provisions of §7.7 or such Mortgage.

 

		§3.3	Optional
                                         Prepayments.

 

(a)       Borrower
shall have the right, at its election, to prepay the outstanding amount of the Loan, as a whole or in part, at any time without
penalty or premium; provided, that if any prepayment of the outstanding amount of any LIBOR Rate Loans pursuant to this
§3.3 is made on a date that is not the last day of the Interest Period relating thereto, such prepayment shall be accompanied
by the payment of any amounts due pursuant to §4.8 and the fees due, if any, pursuant to the terms of the Agreement Regarding
Fees.

 

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(b)       The
Borrower shall give the Agent, no later than 10:00 a.m. (Eastern time) at least three (3) days prior written notice of any prepayment
pursuant to this §3.3, in each case specifying the proposed date of prepayment of the Loan and the principal amount to be
prepaid (provided that (i) any such notice may be revoked or modified upon one (1) day’s prior notice to the Agent) and
(ii) any such notice may be conditioned upon the consummation of a transaction.

 

§3.4
           Partial Prepayments. Each partial prepayment of
the Loan under §3.3 shall be in a minimum amount of $1,000,000 or an integral multiple of $100,000 in excess thereof, shall
be accompanied by the payment of accrued interest on the principal prepaid to the date of payment. Each partial payment under
§3.2 and §3.3 shall be applied ratably to the Loan of each Lender outstanding as of such date (and with respect to each
category of Loans, first to the principal of Base Rate Loans, and then to the principal of LIBOR Rate Loans).

 

		§3.5	Effect
                                         of Prepayments. Amounts of the Loan paid and/or prepaid may not be reborrowed.

 

		§4.	CERTAIN GENERAL PROVISIONS.

 

		§4.1	Conversion
                                         Options.

 

(a)       The
Borrower may elect from time to time to convert any of its outstanding Loan to a Loan of another Type by delivering to the Agent
a Conversion/Continuation Request and such Loan shall thereafter bear interest as a Base Rate Loan or a LIBOR Rate Loan, as applicable;
provided that (i) with respect to any such conversion of a LIBOR Rate Loan to a Base Rate Loan, the Borrower shall give
the Agent at least one (1) Business Day’s prior written notice of such election, and such conversion shall only be made
on the last day of the Interest Period with respect to such LIBOR Rate Loan unless the Borrower pays Breakage Costs as required
under this Agreement; (ii) with respect to any such conversion of a Base Rate Loan to a LIBOR Rate Loan, the Borrower shall give
the Agent at least three (3) LIBOR Business Days’ prior written notice of such election and the Interest Period requested
for such Loan, the principal amount of the Loan so converted shall be in a minimum aggregate amount of $1,000,000 and integral
multiple of $250,000 in excess thereof and, after giving effect to the making of such Loan, there shall be no more than four (4)
LIBOR Rate Loans outstanding at any one time; and (iii) no Loan may be converted into a LIBOR Rate Loan when any Default or Event
of Default has occurred and is continuing. All or any part of the outstanding Loans of any Type may be converted as provided herein,
provided that such partial conversion shall result in a Base Rate Loan in a principal amount that is in an integral multiple
of $100,000 and not less than $1,000,000 or a LIBOR Rate Loan in a principal amount that is an integral multiple of $250,000 but
not less than $1,000,000. On the date on which such conversion is being made, each Lender shall take such action as is necessary
to transfer its Commitment Percentage of such Loans to its Domestic Lending Office or its LIBOR Lending Office, as the case may
be. Each Conversion/Continuation Request relating to the conversion of a Base Rate Loan to a LIBOR Rate Loan shall be irrevocable
by the Borrower.

 

(b)       Any
LIBOR Rate Loan may be continued as such Type upon the expiration of an Interest Period with respect thereto by compliance by
the Borrower with the terms of §4.1; provided that no LIBOR Rate Loan may be continued as such when any Default or
Event of Default has occurred and is continuing, but shall be automatically converted to a Base Rate Loan on the last day of the
Interest Period relating thereto ending during the continuance of any Default or Event of Default.

 

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(c)       In
the event that the Borrower does not notify the Agent of its election hereunder with respect to any LIBOR Rate Loan, such Loan
shall be automatically continued at the end of the applicable Interest Period as a LIBOR Rate Loan for an Interest Period of one
month unless such Interest Period shall be greater than the time remaining until the Maturity Date, in which case such Loan shall
be automatically converted to a Base Rate Loan at the end of the applicable Interest Period.

 

		§4.2	Fees.

 

(a)       Fees.
The Borrower agrees to pay to KeyBank for its own account certain fees for services rendered or to be rendered in connection with
the Loan as provided pursuant to a fee letter dated as of even date herewith between the Borrower and KeyBank (the “Agreement
Regarding Fees”).

 

		§4.3	[Intentionally
                                         Omitted.]

 

		§4.4	Funds
                                         for Payments.

 

(a)       All
payments of principal, interest, facility fees, closing fees and any other amounts due hereunder or under any of the other Loan
Documents shall be made to the Agent, for the respective accounts of the Lenders and the Agent, as the case may be, at the Agent’s
Head Office, not later than 3:00 p.m. (Eastern time) on the day when due (or such later time as is acceptable to the Agent in
the event of a payment in full of the Loan and a termination of Commitments hereunder), in each case in lawful money of the United
States in immediately available funds. To the extent not already paid pursuant to the preceding sentence, the Agent is hereby
authorized to charge the accounts of the Borrower with KeyBank, on the dates when the amount thereof shall become due and payable,
with the amounts of the principal of and interest on the Loans and all fees, charges, expenses and other amounts owing to the
Agent and/or the Lenders under the Loan Documents. Subject to the foregoing, all payments made to Agent on behalf of the Lenders,
and actually received by Agent, shall be deemed received by the Lenders on the date actually received by Agent.

 

(b)       All
payments by or on behalf of the Borrower hereunder and under any of the other Loan Documents shall be made without setoff or counterclaim
and free and clear of and without deduction for any Taxes now or hereafter imposed or levied by the United States of America or
any political subdivision thereof or taxing or other authority therein or any jurisdiction from or through which a payment is
made by the Borrower, excluding any income Taxes, franchise Taxes imposed in lieu of income Taxes and any Taxes imposed by a jurisdiction
as a result of any connection between a Lender and such jurisdiction other than any connection arising solely from executing,
delivering, performing its obligations under, or enforcing any Loan Document (“Non-Excluded Taxes”), unless the Borrower
is compelled by law to make such deduction or withholding. If any such obligation is imposed upon the Borrower with respect to
any amount payable by the Borrower hereunder or under any of the other Loan Documents, the Borrower will pay to the Agent, for
the account of the Lenders or (as the case may be) the Agent, on the date on which such amount is due and payable hereunder or
under such other Loan Document, such additional amount in Dollars as shall be necessary to enable the Lenders or the Agent to
receive the same net amount which the Lenders or the Agent would have received on such due date had no such obligation been imposed
upon the Borrower; provided, however, that the Borrower shall not be required to increase any such amounts payable
to any Lender with respect to any Non-Excluded Taxes (i) that are attributable to such Lender’s failure to comply with the
requirements of §4.4(c) or such Lender’s failure to comply with Sections 1471 through 1474 of the Code or any regulations
promulgated thereunder (the “FATCA”) to establish an exemption from withholding thereunder; (ii) that are branch
profits taxes imposed by the United States or any similar taxes imposed by any other jurisdiction under the laws of which a Lender
is organized or in which its applicable lending office is located; or (iii) in the case of a Non-U.S. Lender, that are imposed
on amounts payable to such Lender at the time such Lender becomes a party to this Agreement (or designates a new lending office),
except to the extent that such Lender (or its assignor, if any) was entitled, at the time of designation of a new lending office
(or assignment) to receive additional amounts from the Borrower with respect to such Non-Excluded Taxes pursuant to this §4.4(b).
The Borrower will deliver promptly to the Agent certificates or other valid vouchers for all Taxes or other charges deducted from
or paid with respect to payments made by the Borrower hereunder or under any other Loan Document. In the event a Lender receives
a refund or credit of any Non-Excluded Taxes paid by the Borrower pursuant to this section, such Lender will pay to the Borrower
the amount of such refund or credit (and any interest received with respect thereto) promptly upon receipt thereof; provided that if at any time thereafter such Lender is required to return such refund or credit, the Borrower shall promptly repay
to such Lender the amount of such refund or credit, net of any reasonable incremental additional costs.

 

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(c)       Each
Lender that is not a United States Person (as such term is defined in Section 7701(a)(30) of the Code) for U.S. federal income
tax purposes (a “Non-U.S. Lender”), to the extent such Lender is lawfully able to do so, shall provide the Borrower
on or prior to the Closing Date (in the case of each Lender listed on the signature pages hereof on the Closing Date) or on or
prior to the date of the Assignment and Acceptance Agreement pursuant to which it becomes a Lender (in the case of each other
Lender), and at such other times as may be necessary in the determination of the Borrower, with (x) two (2) original copies of
Internal Revenue Service Form W-8BEN, W-8BEN-E, W-8ECI and/or W-8IMY (or, in each case, any successor forms), properly completed
and duly executed by such Lender, and any other such duly executed form(s) or statement(s) (including whether such Lender has
complied with the FATCA) which may, from time to time, be prescribed by law and, which, pursuant to applicable provisions of (i)
an income tax treaty between the United States and the country of residence of such Lender, (ii) the Code, or (iii) any applicable
rules or regulations in effect under (i) or (ii) above, establish that such Lender is not subject to deduction or withholding
of United States federal income tax with respect to any payments to such Lender of principal, interest, fees or other amounts
payable under any of the Loan Documents, or (y) if such Lender is not a “bank” or other Person described in Section
881(c)(3) of the Code, a Certificate Regarding Non-Bank Status together with two (2) original copies of Internal Revenue Service
Form W-8BEN or W-8BEN-E (or any successor form), properly completed and duly executed by such Lender, and such other documentation
required under the Code and requested by the Borrower to establish that such Lender is not subject to deduction or withholding
of United States federal income tax with respect to any payments to such Lender of interest payable under any of the Loan Documents.
Each Lender that is a United States Person (as such term is defined in Section 7701(a)(30) of the Code) for United States federal
income tax purposes (a “U.S. Lender”) and is not an exempt recipient within the meaning of Treasury Regulations Section
1.6049-4(c) shall provide the Borrower on or prior to the Closing Date (or, if later, on or prior to the date on which such Lender
becomes a party to this Agreement) two (2) original copies of Internal Revenue Service From W-9 (or any successor form), properly
completed and duly executed by such Lender, certifying that such U.S. Lender is entitled to an exemption from United States backup
withholding tax, or otherwise prove that it is entitled to such an exemption. Each Lender required to deliver any forms, certificates
or other evidence with respect to United States federal income tax withholding matters pursuant to this section hereby agrees,
from time to time after the initial delivery by such Lender of such forms, certificates or other evidence, whenever a lapse in
time or change in circumstances renders such forms, certificates or other evidence obsolete or inaccurate in any material respect,
that such Lender shall promptly provide the Borrower two (2) new original copies of Internal Revenue Service Form W-9, W-8BEN-E,
W-8ECI and/or W-8IMY (or, in each case, any successor form), or a Certificate Regarding Non-Bank Status and two (2) original copies
of Internal Revenue Service Form W-8BEN-E or any successor form), as the case may be, properly completed and duly executed by
such Lender, and such other documentation required under the Code and requested by the Borrower to confirm or establish that such
Lender is not subject to deduction or withholding of United States federal income tax with respect to payments to such Lender
under the Loan Documents, or notify the Borrower of its inability to deliver any such forms, certificates or other evidence.

 

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(d)       The
obligations of the Borrower to the Lenders under this Agreement shall be absolute, unconditional and irrevocable, and shall be
paid and performed strictly in accordance with the terms of this Agreement, under all circumstances whatsoever, including, without
limitation, the following circumstances: (i) any lack of validity or enforceability of this Agreement or any of the other Loan
Documents; (ii) the existence of any claim, set-off, defense or any right which the Credit Parties or any of their Subsidiaries
or Affiliates may have at any time against the Lenders (other than the defense of payment to the Lenders in accordance with the
terms of this Agreement) or any other person, whether in connection with this Agreement, any other Loan Document, or any unrelated
transaction; (iii) the surrender or impairment of any security for the performance or observance of any of the terms of any of
the Loan Documents; (iv) the occurrence of any Default or Event of Default; and (v) any other circumstance or happening whatsoever,
whether or not similar to any of the foregoing.

 

§4.5
           Computations. All computations of interest on the
Loan and of other fees to the extent applicable shall be based on a 360-day year and paid for the actual number of days elapsed
(except that interest on Base Rate Loans shall be based on a 365- or 366-day year, as applicable). Except as otherwise provided
in the definition of the term “Interest Period” with respect to LIBOR Rate Loans, whenever a payment hereunder or
under any of the other Loan Documents becomes due on a day that is not a Business Day, the due date for such payment shall be
extended to the next succeeding Business Day, and interest shall accrue during such extension. The Outstanding Balance as reflected
on the records of the Agent from time to time shall be considered prima facie evidence of such amount absent manifest error.

 

§4.6            Suspension
of LIBOR Rate Loans. In the event that, prior to the commencement of any Interest Period relating to any LIBOR Rate Loan, the
Agent shall determine that adequate and reasonable methods do not exist for ascertaining LIBOR for such Interest Period, or the
Agent shall reasonably determine that LIBOR will not accurately and fairly reflect the cost of the Lenders making or maintaining
LIBOR Rate Loans for such Interest Period, the Agent shall forthwith give notice of such determination (which shall be conclusive
and binding on the Borrower and the Lenders absent manifest error) to the Borrower and the Lenders. In such event each LIBOR Rate
Loan will automatically, on the last day of the then current Interest Period applicable thereto, become a Base Rate Loan, and
the obligations of the Lenders to make LIBOR Rate Loans shall be suspended until the Agent determines that the circumstances giving
rise to such suspension no longer exist, whereupon the Agent shall so notify the Borrower and the Lenders.

 

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§4.7
           Illegality. Notwithstanding any other provisions
herein, if any Change in Law shall make it unlawful, or any central bank or other governmental authority having jurisdiction over
a Lender or its LIBOR Lending Office shall assert that it is unlawful, for any Lender to make or maintain LIBOR Rate Loans, such
Lender shall forthwith give notice of such circumstances to the Agent and the Borrower and thereupon (a) the commitment of the
Lenders to make LIBOR Rate Loans shall forthwith be suspended and (b) the LIBOR Rate Loans then outstanding shall be converted
automatically to Base Rate Loans on the last day of each Interest Period applicable to such LIBOR Rate Loans or within such earlier
period as may be required by law. Notwithstanding the foregoing, before giving such notice, the applicable Lender shall designate
a different lending office if such designation will void the need for giving such notice and will not, in the reasonable judgment
of such Lender, be otherwise materially disadvantageous to such Lender or increase any costs payable by Borrower hereunder.

 

§4.8           
Additional Interest. If any LIBOR Rate Loan or any portion thereof is repaid or is converted to a Base Rate Loan for any reason
on a date which is prior to the last day of the Interest Period applicable to such LIBOR Rate Loan, or if repayment of the Loan
has been accelerated as provided in §12.1, the Borrower will pay to the Agent upon demand for the account of the applicable
Lenders in accordance with their respective Commitment Percentages, in addition to any amounts of interest otherwise payable hereunder,
the Breakage Costs. Borrower understands, agrees and acknowledges the following: (i) no Lender has any obligation to purchase,
sell and/or match funds in connection with the use of LIBOR as a basis for calculating the rate of interest on a LIBOR Rate Loan;
(ii) LIBOR is used merely as a reference in determining such rate; and (iii) Borrower has accepted LIBOR as a reasonable and fair
basis for calculating such rate and any Breakage Costs. Borrower further agrees to pay the Breakage Costs, if any, whether or
not a Lender elects to purchase, sell and/or match funds.

 

		§4.9	Additional
                                         Costs, Etc. Notwithstanding anything herein to the contrary, if any Change in Law, shall:

 

(a)       subject
any Lender or the Agent to any tax, levy, impost, duty, charge, fee, deduction or withholding of any nature with respect to this
Agreement, the other Loan Documents, such Lender’s Commitment, or the Loan (other than taxes based upon or measured by the
gross receipts, income or profits of such Lender or the Agent or its franchise tax), or

 

(b)       materially
change the basis of taxation (except for changes in taxes on gross receipts, income or profits or its franchise tax) of payments
to any Lender of the principal of or the interest on any Loans or any other amounts payable to any Lender under this Agreement
or the other Loan Documents, or

 

(c)       impose
or increase or render applicable any special deposit, reserve, assessment, liquidity, capital adequacy or other similar requirements
(whether or not having the force of law and which are not already reflected in any amounts payable by Borrower hereunder) against
assets held by, or deposits in or for the account of, or loans by, or commitments of an office of any Lender, or

 

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(d)       impose
on any Lender or the Agent any other conditions or requirements with respect to this Agreement, the other Loan Documents, the
Loan, such Lender’s Commitment, or any class of loans or commitments of which any of the Loans or such Lender’s Commitment
forms a part; and the result of any of the foregoing is:

 

(i)       to
increase the cost to any Lender of making, funding, issuing, renewing, extending or maintaining the Loan or such Lender’s
Commitment, or

 

(ii)       to
reduce the amount of principal, interest or other amount payable to any Lender or the Agent hereunder on account of such Lender’s
Commitment or the Loan, or

 

(iii)       to
require any Lender or the Agent to make any payment or to forego any interest or other sum payable hereunder, the amount of which
payment or foregone interest or other sum is calculated by reference to the gross amount of any sum receivable or deemed received
by such Lender or the Agent from the Borrower hereunder then, and in each such case, the Borrower will (and as to clauses (a)
and (b) above, subject to the provisions of Section §4.4), within thirty (30) days of demand made by such Lender or (as the
case may be) the Agent at any time and from time to time and as often as the occasion therefor may arise, pay to such Lender or
the Agent such additional amounts as such Lender or the Agent shall determine in good faith to be sufficient to compensate such
Lender or the Agent for such additional cost, reduction, payment or foregone interest or other sum. For the avoidance of doubt,
the provisions of this §4.9 shall not apply with respect to Taxes, which shall be governed by §4.4(b) and §4.4(c).

 

§4.10
         Capital Adequacy. If after the date hereof any Lender determines
that (a) as a result of any Change in Law, or (b) compliance by such Lender or its parent bank holding company with any directive
of any such entity regarding liquidity or capital adequacy, has the effect of reducing the return on such Lender’s or such
holding company’s capital as a consequence of such Lender’s commitment to make Loans hereunder to a level below that
which such Lender or holding company could have achieved but for such adoption, change or compliance (taking into consideration
such Lender’s or such holding company’s then existing policies with respect to capital adequacy and assuming the full
utilization of such entity’s capital) by any amount deemed by such Lender to be material, then such Lender may notify the
Borrower thereof. The Borrower agrees to pay to such Lender the amount of such reduction in the return on capital as and when
such reduction is determined, upon presentation by such Lender of a statement of the amount setting forth the Lender’s calculation
thereof. In determining such amount, such Lender may use any reasonable averaging and attribution methods generally applied by
such Lender.

 

§4.11
         Breakage Costs. Borrower shall pay all Breakage Costs required to
be paid by them pursuant to this Agreement and incurred from time to time by any Lender within fifteen (15) days from receipt
of written notice from Agent.

 

§4.12
         Default Interest; Late Charge. Following the occurrence and
during the continuance of any Event of Default, and regardless of whether or not the Agent or the Lenders shall have accelerated
the maturity of the Loan, the Loans shall bear interest payable on demand at a rate per annum equal to four percent (4.0%) above
the interest rate that would otherwise be in effect hereunder (the “Default Rate”), until such amount shall be paid
in full (after as well as before judgment). In addition, the Borrower shall pay a late charge equal to four percent (4.0%) of
any amount of interest and/or principal payable on the Loan or any other amounts payable hereunder or under the other Loan Documents,
excluding principal due upon acceleration or at maturity, which is not paid by the Borrower within ten (10) days of the date when
due.

 

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§4.13
         Certificate. A certificate setting forth any amounts payable
pursuant to §4.8, §4.9, §4.10, §4.11 or §4.12 and a reasonably detailed explanation of such amounts which
are due, submitted by any Lender or the Agent to the Borrower, shall be presumptively correct in the absence of manifest error.

 

§4.14
         Limitation on Interest. Notwithstanding anything in this Agreement
or the other Loan Documents to the contrary, all agreements between or among the Borrower, the Lenders and the Agent, whether
now existing or hereafter arising and whether written or oral, are hereby limited so that in no contingency, whether by reason
of acceleration of the maturity of any of the Obligations or otherwise, shall the interest contracted for, charged or received
by the Lenders exceed the maximum amount permissible under Applicable Law. If, from any circumstance whatsoever, interest would
otherwise be payable to the Lenders in excess of the maximum lawful amount, the interest payable to the Lenders shall be reduced
to the maximum amount permitted under Applicable Law; and if from any circumstance the Lenders shall ever receive anything of
value deemed interest by Applicable Law in excess of the maximum lawful amount, an amount equal to any excessive interest shall
be applied to the reduction of the principal balance of the Obligations and to the payment of interest or, if such excessive interest
exceeds the unpaid balance of principal of the Obligations, such excess shall be refunded to the Borrower. All interest paid or
agreed to be paid to the Lenders shall, to the extent permitted by Applicable Law, be amortized, prorated, allocated and spread
throughout the full period until payment in full of the principal of the Obligations (including the period of any renewal or extension
thereof) so that the interest thereon for such full period shall not exceed the maximum amount permitted by Applicable Law. This
Section shall control all agreements between or among the Borrower, the Lenders and the Agent.

 

§4.15         
Certain Provisions Relating to Increased Costs and Non-Funding Lenders. If a Lender gives notice of the existence of the circumstances
set forth in §4.7 or any Lender requests compensation for any losses or costs to be reimbursed pursuant to any one or more
of the provisions of §4.4(b) (as a result of the imposition of U.S. withholding taxes on amounts paid to such Lender under
this Agreement), §4.9 or §4.10, then, upon the request of Borrower, such Lender, as applicable, shall use reasonable
efforts in a manner consistent with such institution’s practice in connection with loans like the Loan of such Lender to
eliminate, mitigate or reduce amounts that would otherwise be payable by Borrower under the foregoing provisions, provided that such action would not be otherwise materially prejudicial to such Lender, including, without limitation, by designating
another of such Lender’s offices, branches or affiliates; the Borrower agreeing to pay all reasonably incurred costs and
expenses incurred by such Lender in connection with any such action. Notwithstanding anything to the contrary contained herein,
if no Default or Event of Default shall have occurred and be continuing, and if any Lender (a) has given notice of the existence
of the circumstances set forth in §4.7 or has requested payment or compensation for any losses or costs to be reimbursed
pursuant to any one or more of the provisions of §4.4(b) (as a result of the imposition of U.S. withholding taxes on amounts
paid to such Lender under this Agreement), §4.9 or §4.10 and following the request of Borrower has been unable to take
the steps described above to mitigate such amounts or is a Non-Consenting Lender (each, an “Affected Lender”) or (b)
has failed to make available to Agent its pro rata share of any Loan and such failure has not been cured (a “Non-Funding
Lender”), then, within thirty (30) days after such notice or request for payment or compensation or failure to fund, as
applicable, Borrower shall have the right as to such Affected Lender or Non-Funding Lender, as applicable, to be exercised by
delivery of written notice delivered to the Agent and the Affected Lender or Non-Funding Lender, as applicable, to elect to cause
the Affected Lender or Non-Funding Lender, as applicable, to transfer its Commitment to an Eligible Assignee pursuant to §18.
The Agent shall promptly notify the remaining Lenders that each of such Lenders shall have the right, but not the obligation,
to acquire a portion of the Commitment, pro rata based upon their relevant Commitment Percentages, of the Affected Lender or Non-Funding
Lender, as applicable (or if any of such Lenders does not elect to purchase its pro rata share, then to such remaining Lenders
in such proportion as approved by the Agent). In the event that the Lenders do not elect to acquire all of the Affected Lender’s
or Non-Funding Lender’s Commitment, then the Agent shall endeavor to obtain a new Lender to acquire such remaining Commitment.
Upon any such purchase of the Commitment of the Affected Lender or Non-Funding Lender, as applicable, the Affected Lender’s
or Non-Funding Lender’s interest in the Obligations and its rights hereunder and under the Loan Documents shall terminate
at the date of purchase, and the Affected Lender or Non-Funding Lender, as applicable, shall promptly execute all documents reasonably
requested to surrender and transfer such interest. The purchase price for the Affected Lender’s or Non-Funding Lender’s
Commitment shall equal any and all amounts outstanding and owed by Borrower to the Affected Lender or Non-Funding Lender, as applicable,
including principal, prepayment premium or fee, and all accrued and unpaid interest or fees.

 

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§4.16
         Acknowledgement and Consent to Bail-In of EEA Financial Institutions.
Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any
such parties, each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan Document,
to the extent such liability is unsecured, may be subject to the Write-Down and Conversion Powers of an EEA Resolution Authority
and agrees and consents to, and acknowledges and agrees to be bound by:

 

(a)       the
application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which
may be payable to it by any party hereto that is an EEA Financial Institution; and

 

(b)       the
effects of any Bail-in Action on any such liability, including, if applicable:

 

(i)       a
reduction in full or in part or cancellation of any such liability;

 

(ii)      a
conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution,
its parent entity, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other
instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement
or any other Loan Document; or

 

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(iii)       the
variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of any EEA Resolution
Authority.

 

		§5.
                            	COLLATERAL SECURITY.

 

		§5.1	Collateral.

 

(a)       The
Obligations and the Hedge Obligations shall be secured by a perfected first priority lien and security interest to be held by
the Agent for the benefit of the Lenders on the Collateral, pursuant to the terms of the Security Documents. The Borrower shall
(and, subject to any provisions of any financing to which any Subsidiary is a party or by which a Subsidiary is bound, shall cause
its Subsidiaries) to comply, in all material respects, with the terms and provisions of the Security Documents, including, without
limitation, with respect to all additional Collateral to be provided to Agent, for the benefit of Lenders, as and when therein
provided, including, without limitation, on account of any and all additional Subsidiaries of Borrower (and/or intervening Subsidiaries)
which shall exist from and after the Closing Date. Borrower shall provide Agent with at least five (5) Business Days’ notice
prior to the Borrower acquiring or creating any such additional Subsidiary, together with such information, documents, and materials
(including, without limitation, ownership certificates, stock/transfer powers, and other documentation required to be provided
to Agent pursuant to the terms and provisions of the Ownership Interest Pledge the Distribution Interest Pledge, or any other
applicable Security Document, including, without limitation, all “know your customer” and other materials reasonably
requested by Agent. Without limiting the foregoing or the terms and provisions of each Ownership Interest Pledge and each Distribution
Interest Pledge (and as further provided therein) provided hereunder, with respect to each additional Borrower Subsidiary which
is established from and after the Closing Date, subject to the provisions of any document evidencing any Indebtedness approved
by the Agent to be incurred by such Subsidiary hereunder, Borrower shall cause such Borrower Subsidiary to confirm the applicable
Ownership Interest Pledge or Distribution Interest Pledge and to provide such other stock or ownership certificates, executed
transfer powers, and documentation (as further provided therein) as reasonably required by Agent to perfect or vest more securely
its pledge and security interest to and in the applicable “Collateral” (as defined in each such applicable Ownership
Interest Pledge or Distribution Interest Pledge) (to the extent such Ownership Interest Pledge or Distribution Interest Pledge
is permitted to be provided (and/or not prohibited from being provided) as reasonably determined in good faith).

 

		§5.2	Appraisals;
                                         Adjusted Value.

 

(a)       The
Agent may, for the purpose of determining the current Appraised Value of the Mortgaged Properties and other Real Estate, as applicable,
obtain new Appraisals or an update to existing Appraisals with respect to such property, or any of them, as the Agent shall determine
(i) at any time that the regulatory requirements of any Lender generally applicable to real estate loans of the category made
under this Agreement as reasonably interpreted by such Lender shall explicitly require more frequent Appraisals, (ii) in connection
with a request for an extension of the Maturity Date pursuant to §2.7, or (iii) at any time during the continuance of an
Event of Default. The reasonable out-of-pocket expense of such Appraisals and/or updates performed pursuant to this §5.2(b)
shall be borne by the Borrower and payable to Agent within thirty (30) days of demand; provided, that unless an Event of Default
shall be in existence, the Borrower shall not be required to pay for more than one (1) appraisal per property per calendar year.

 

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(b)       The
Borrower acknowledges that the Agent has the right to approve any Appraisal performed pursuant to this Agreement. The Borrower
further agrees that the Lenders and Agent do not make any representations or warranties with respect to any such Appraisal and
shall have no liability as a result of or in connection with any such Appraisal for statements contained in such Appraisal, including
without limitation, the accuracy and completeness of information, estimates, conclusions and opinions contained in such Appraisal,
or variance of such Appraisal from the fair value of such property that is the subject of such Appraisal given by the local tax
assessor’s office, or the Borrower’s idea of the value of such property.

 

§5.3
           Release of Collateral. Upon the refinancing or repayment
of the Obligations in full, then the Agent shall release the Collateral from the lien and security interest of the Security Documents
and to release the Borrower; provided that Agent has not received a notice from the Representative (as defined in §14.17)
or the holder of the Hedge Obligations that any Hedge Obligation is then due and payable to the holder thereof.

 

		§6.	REPRESENTATIONS
                                         AND WARRANTIES.

 

To
induce the Lenders to enter into this Agreement and to make the Loan and to otherwise complete all of the transactions contemplated
hereby, the Credit Parties represent and warrant to the Agent and each Lender that:

 

		§6.1	Corporate
                                         Authority, Etc.

 

(a)       Incorporation;
Good Standing. Borrower is a Delaware limited partnership duly organized pursuant to its certificate of limited partnership
filed with the Delaware Secretary of State, and is validly existing and in good standing under the laws of Delaware. Borrower
(i) has all requisite power to own its property and conduct its business as now conducted and as presently contemplated, and (ii)
is in good standing and is duly authorized to do business in the jurisdictions where the Real Estate owned or leased by it is
located and in each other jurisdiction where a failure to be so qualified in such other jurisdiction could have a Material Adverse
Effect.

 

(b)       Guarantors.
Each of the Guarantors (i) is a corporation or limited liability company duly organized under the laws of its jurisdiction of
organization and is validly existing and in good standing under the laws thereof, (ii) has all requisite power to own its property
and conduct its business as now conducted and as presently contemplated and (iii) is in good standing and is duly authorized to
do business in each jurisdiction where the Real Estate owned or leased by it is located and in each other jurisdiction where a
failure to be so qualified in such other jurisdiction could have a Material Adverse Effect.

 

(c)       Master
Tenant. Each of the Master Tenants (i) is a corporation or limited liability company duly organized under the laws of its
jurisdiction of organization and is validly existing and in good standing under the laws thereof, (ii) has all requisite power
to own its property and conduct its business as now conducted and as presently contemplated and (iii) is in good standing and
is duly authorized to do business in each jurisdiction where the Real Estate leased by it is located and in each other jurisdiction
where a failure to be so qualified in such other jurisdiction could have a Material Adverse Effect.

 

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(d)       Authorization.
The execution, delivery and performance of this Agreement, the other Loan Documents and the Hotel Documents to which any of the
Property Parties is a party and the transactions contemplated hereby and thereby (i) are within the authority of the Property
Parties, (ii) have been duly authorized by all necessary proceedings on the part of the Property Parties, (iii) do not and will
not conflict with or result in any breach or contravention of any provision of law, statute, rule or regulation to which any Property
Party is subject or any judgment, order, writ, injunction, license or permit applicable to any Property Party, except as would
not reasonably be expected to result in a Material Adverse Effect, (iv) do not and will not conflict with or constitute a default
(whether with the passage of time or the giving of notice, or both) under any provision of the operating agreement, partnership
agreement, articles of incorporation or other charter documents or bylaws of, or any agreement or other instrument binding upon,
any Property Party or any of its properties, (v) do not and will not result in or require the imposition of any lien or other
encumbrance on any of the properties, assets or rights of any Property Party other than the liens and encumbrances in favor of
Agent contemplated by this Agreement and the other Loan Documents, and (vi) do not require the approval or consent of any Person
other than those already obtained and delivered to Agent or except as would not reasonably be expected to result in a Material
Adverse Effect.

 

(e)       Enforceability.
The execution and delivery of this Agreement, the other Loan Documents and the Hotel Documents to which any of the Property Parties
is a party are valid and legally binding obligations of each Property Party enforceable in accordance with the respective terms
and provisions hereof and thereof, except as enforceability is limited by bankruptcy, insolvency, reorganization, moratorium or
other laws relating to or affecting generally the enforcement of creditors’ rights and general principles of equity.

 

§6.2
           Governmental Approvals. The execution, delivery
and performance of this Agreement and the other Loan Documents to which any Property Party is a party and the transactions contemplated
hereby and thereby do not require the approval or consent of, or filing or registration with, or the giving of any notice to,
any court, department, board, governmental agency or authority other than those already obtained and the filing of the Security
Documents in the appropriate records office with respect thereto, in each case, except as would not reasonably be expected to
result in a Material Adverse Effect.

 

§6.3
           Title to Mortgaged Properties. Except as indicated
on Schedule 6.3 hereto or other adjustments that are not material in amount, Subsidiary Guarantors own the Mortgaged Property
subject to no rights of others, including any mortgages, leases pursuant to which a Master Tenant is the lessee, conditional sales
agreements, title retention agreements, liens or other encumbrances except Permitted Liens.

 

§6.4
           Financial Statements. Borrower has furnished to
Agent: (a) the balance sheet of REIT and its Subsidiaries as of the Balance Sheet Date and the related statement of income and
cash flow for the calendar year then ended, prepared by an Authorized Officer or the chief financial or accounting officer of
REIT, and (b) certain other financial information relating to the REIT and its Subsidiaries and the Real Estate (including, without
limitation, the Mortgaged Properties). Such balance sheet and statements have been prepared on a consolidating basis in accordance
with generally accepted accounting principles and fairly present the consolidated financial condition of the REIT and its Subsidiaries
as of such dates and the consolidated results of the operations of the REIT and its Subsidiaries for such periods.

 

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§6.5
           No Material Changes. Since the Balance Sheet Date or
the date of the most recent financial statements delivered pursuant to §7.4, as applicable, there has occurred no materially
adverse change in the financial condition, or business of the Property Parties, and their respective Subsidiaries taken as a whole
as shown on or reflected in the Consolidated balance sheet of the REIT as of the Balance Sheet Date, or its Consolidated statement
of income or cash flows for the calendar year then ended, other than changes that have not and could not reasonably be expected
to have a Material Adverse Effect.

 

§6.6
           Franchises, Patents, Copyrights, Etc. The Property
Parties and their respective Subsidiaries possess all franchises, patents, copyrights, trademarks, trade names, service marks,
licenses and permits, and rights in respect of the foregoing, adequate for the conduct of their business substantially as now
conducted without known conflict with any rights of others. The Property Parties and their respective Subsidiaries, if applicable,
are not in material violation of any provision of the Hotel Documents and the Hotel Documents are in full force and effect and
the and their respective Subsidiaries, if applicable, are in material compliance with their respective obligations under the respective
Hotel Documents.

 

§6.7
           Litigation. Except as stated on Schedule 6.7,
there are no actions, suits, proceedings or investigations of any kind pending or threatened against any Property Party or any
of their respective Subsidiaries before any court, tribunal, arbitrator, mediator or administrative agency or board which question
the validity of this Agreement or any of the other Loan Documents, any action taken or to be taken pursuant hereto or thereto
or any lien, security title or security interest created or intended to be created pursuant hereto or thereto, or which could
reasonably be expected to have a Material Adverse Effect. Except as set forth on Schedule 6.7, there are no judgments,
final orders or awards outstanding against or affecting any Property Party, any of their respective Subsidiaries, or any Mortgaged
Property individually or in the aggregate in excess of $250,000.00.

 

§6.8
           No Material Adverse Contracts, Etc. None of the
Property Parties or any of their respective Subsidiaries is subject to any charter, corporate or other legal restriction, or any
judgment, decree, order, rule or regulation that has or is expected in the future to have a Material Adverse Effect. None of the
Property Parties or any of their respective Subsidiaries is a party to any contract or agreement that has or could reasonably
be expected to have a Material Adverse Effect.

 

§6.9
           Compliance with Other Instruments, Laws, Etc. None
of the Property Parties or any of their respective Subsidiaries is in violation of any provision of its charter or other organizational
documents, bylaws, or any agreement or instrument to which it is subject or by which it or any of its properties is bound or any
decree, order, judgment, statute, license, rule or regulation, in any of the foregoing cases in a manner that has had or could
reasonably be expected to have a Material Adverse Effect.

 

§6.10
         Tax Status. Except as would not reasonably be expected to result
in a Material Adverse Effect, each Property Party and their respective Subsidiaries (a) has made or filed all federal and state
income and all other Tax returns, reports and declarations required by any jurisdiction to which it is subject or has obtained
an extension for filing, (b) has paid prior to delinquency all Taxes and other governmental assessments and charges shown or determined
to be due on such returns, reports and declarations, except those being contested in good faith and by appropriate proceedings
or for which any of the Property Parties or their respective Subsidiaries, as applicable has set aside on its books provisions
reasonably adequate for the payment of such Taxes, and (c) has made provisions reasonably adequate for the payment of all accrued
Taxes not yet due and payable. Except as would not reasonably be expected to result in a Material Adverse Effect, there are no
unpaid Taxes claimed by the taxing authority of any jurisdiction to be due by the Property Parties or their respective Subsidiaries,
the officers or partners of such Person know of no basis for any such claim, and there are no audits pending or threatened with
respect to any Tax returns filed by Property Parties or their respective Subsidiaries.

 

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§6.11
         No Event of Default. No Default or Event of Default has occurred
and is continuing.

 

§6.12
         Investment Company Act. None of the Property Parties or any of their
respective Subsidiaries is an “investment company”, or an “affiliated company” or a “principal underwriter”
of an “investment company”, as such terms are defined in the Investment Company Act of 1940.

 

§6.13
         Absence of UCC Financing Statements, Etc. Except with respect to
Permitted Liens or as disclosed on the lien search reports delivered to and approved by the Agent, there is no financing statement
(but excluding any financing statements that may be filed against the Borrower or any Guarantor without the consent or agreement
of such Persons), security agreement, chattel mortgage, real estate mortgage or other document filed or recorded with any applicable
filing records, registry, or other public office, that purports to cover, affect or give notice of any present or possible future
lien on, or security interest or security title in, any Collateral.

 

§6.14
         Setoff, Etc. The Collateral and the rights of the Agent and
the Lenders with respect to the Collateral are to the best knowledge of the Borrower, not subject to any setoff, claims, withholdings
or other defenses by (a) the Credit Parties, and to the extent any such setoff, claims, withholdings or other defenses shall exist,
each Credit Party hereby waives same, or, (b) any other Person, other than Permitted Liens described in §8.2(i)(A), (iii)
and (v).

 

§6.15
         Certain Transactions. Except as disclosed on Schedule 6.15
hereto, none of the partners, officers, trustees, managers, members, directors, or employees of any Credit Party or their respective
Subsidiaries, is, nor shall any such Person become, a party to any transaction with any Credit Party or their respective Subsidiaries
(other than for services as partners, managers, members, employees, officers and directors), including any agreement or other
arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or
otherwise requiring payments to or from any partner, officer, trustee, director or such employee or, to the knowledge of each
Credit Party, any corporation, partnership, trust or other entity in which any partner, officer, trustee, director, or any such
employee has a substantial interest or is an officer, director, trustee or partner, which are on terms less favorable to such
Person than those that would be obtained in a comparable arms-length transaction.

 

§6.16
         ERISA. No Credit Party has adopted a Plan. As of the date hereof
and throughout the term of the Loan (i) no Credit Party is or shall be an “employee benefit plan,” as defined in Section
3(3) of ERISA, subject to Title I of ERISA, (ii) none of the assets of Credit Parties constitute or will constitute, by virtue
of the application of 29 C.F.R. Section 2510.3-101(f) as modified by Section 3(42) of ERISA, “plan assets” of one
or more such plans within the meaning of 29 C.F.R. Section 2510.3-101, (iii) no Credit Party is or shall be a “governmental
plan” within the meaning of Section 3(32) of ERISA, and (iv) transactions by or with each Credit Party are not and
will not be subject to state statutes regulating investment of, and fiduciary obligations with respect to, governmental plans.

 

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§6.17
         Disclosure. All of the representations and warranties made by
or on behalf of the Property Parties in this Agreement and the other Loan Documents or any document or instrument delivered to
the Agent or the Lenders pursuant to or in connection with any of such Loan Documents are true and correct in all material respects.
All information contained in this Agreement, the other Loan Documents or otherwise furnished to or made available to the Agent
or the Lenders by or on behalf of any Property Party as supplemented to date, is, and when delivered, will be, true and correct
in all material respects and, as supplemented to date, does not contain any untrue statement of a material fact or omit to state
a material fact necessary to make the statements contained therein not materially misleading when taken as a whole. The written
information, reports and other papers and data with respect to the Property Parties, any Subsidiary or the Mortgaged Properties
(other than projections and estimates) furnished to the Agent or the Lenders in connection with this Agreement or the obtaining
of the Commitments of the Lenders hereunder was, at the time so furnished, correct in all material respects, or has been subsequently
supplemented by other written information, reports or other papers or data, to the extent necessary to give in all material respects
a true and accurate knowledge of the subject matter in all material respects; provided that such representation shall not
apply to (a) the accuracy of any appraisal, title commitment, survey, or engineering and environmental reports prepared by third
parties or legal conclusions or analysis provided by the Borrower’s counsel (although the Borrower has no reason to believe
that the Agent and the Lenders may not rely on the accuracy thereof) or (b) budgets, projections and other forward-looking speculative
information prepared in good faith by the Property Parties (except to the extent the related assumptions were when made manifestly
unreasonable).

 

§6.18
         Trade Name; Place of Business. Borrower does not use any trade
name or conduct business under any name other than its actual name set forth in the Loan Documents. The principal place of business
of the Borrower is c/o Moody National Companies, 6363 Woodway Drive, Suite 110, Houston, Texas 77057.

 

§6.19
         Regulations T, U and X. No portion of any Loan is to be used
for the purpose of purchasing or carrying any “margin security” or “margin stock” as such terms are used
in Regulations T, U and X of the Board of Governors of the Federal Reserve System, 12 C.F.R. Parts 220, 221 and 224. No Credit
Party is engaged, nor will it engage, principally or as one of its important activities, in the business of extending credit for
the purpose of purchasing or carrying any “margin security” or “margin stock” as such terms are used in
Regulations T, U and X of the Board of Governors of the Federal Reserve System, 12 C.F.R. Parts 220, 221 and 224.

 

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§6.20
         Environmental Compliance. Except as set forth on Schedule 6.20
or as specifically set forth in the written environmental site assessment reports of the Environmental Engineer provided to
the Agent on or before the date hereof, or in the case of Mortgaged Property acquired after the date hereof, the environmental
site assessment reports with respect thereto provided to the Agent, the Credit Parties make the following representations and
warranties:

 

(a)       To
the knowledge of Borrower, none of the Property Parties, their respective Subsidiaries, nor any operation on the Real Estate,
is in violation, or alleged violation, of any Environmental Law, which violation could reasonably be expected to have a Material
Adverse Effect.

 

(b)       None
of the Property Parties, nor their respective Subsidiaries, has received written notice from any third party including, without
limitation, any federal, state or local governmental authority, (i) that it has been identified by the United States Environmental
Protection Agency (“EPA”) as a potentially responsible party under CERCLA with respect to a site listed on the National
Priorities List, 40 C.F.R. Part 300 Appendix B (1986); (ii) that any Hazardous Substance(s) which it has generated, transported
or disposed of have been found at any site at which a federal, state or local agency or other third party has conducted, or has
demanded that any Property Party conduct, a remedial investigation, removal or other response action pursuant to any Environmental
Law; or (iii) that it is or shall be a named party to any claim, action, cause of action, complaint, or legal or administrative
proceeding (in each case, contingent or otherwise) arising out of any third party’s incurrence of costs, expenses, losses
or damages of any kind whatsoever in connection with the release of Hazardous Substances, which could reasonably be expected to
have a Material Adverse Effect.

 

(c)       To
the knowledge of the Property Parties, (i) no portion of the Real Estate owned by the Property Parties or their respective Subsidiaries
is used for the handling, processing, storage or disposal of Hazardous Substances except in compliance with applicable Environmental
Laws, and no underground tank or other underground storage receptacle for Hazardous Substances is located on any portion of the
Real Estate except those which are being operated and maintained in compliance with Environmental Laws; (ii) in the course of
any activities conducted by the Property Parties, their respective Subsidiaries or, the tenants or operators of their properties,
no Hazardous Substances have been generated or are being used on the Real Estate except in the ordinary course of such party’s
business and in compliance with applicable Environmental Laws; (iii) there has been no past or present releasing, spilling, leaking,
pumping, pouring, emitting, emptying, discharging, injecting, escaping, disposing or dumping (other than in reasonable quantities
to the extent necessary in the ordinary course of operation of a Property Party’s, it Subsidiary’s, its tenant’s
or operator’s business and, in any event, in compliance with all Environmental Laws) (a “Release”) or threatened
Release of Hazardous Substances on, upon, into or from the Mortgaged Properties, which Release would have a material adverse effect
on the value of such Real Estate or could reasonably be expected to have a Material Adverse Effect; (iv) there have been no Releases
on, upon, from or into any real property in the vicinity of any of the Real Estate which, through soil or groundwater contamination,
may have come to be located on the Real Estate, and which could be reasonably anticipated to have a Material Adverse Effect; and
(v) any Hazardous Substances that have been generated on any of the Real Estate have been transported off-site in accordance with
all applicable Environmental Laws and in a manner that could not reasonably be expected to have a Material Adverse Effect.

 

(d)       Except
for such matters that shall be complied with as of the Closing Date, by virtue of the transactions set forth herein and contemplated
hereby, or as a condition to the recording of the Mortgages or to the effectiveness of any other transactions contemplated hereby,
none of the Property Parties or their respective Subsidiaries nor the Real Estate will become subject to any applicable Environmental
Law requiring the performance of environmental site assessments, or the removal or remediation of Hazardous Substances, or the
giving of notice to any governmental agency or the recording or delivery to other Persons of an environmental disclosure document
or statement pursuant to applicable Environmental Laws.

 

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(e)       There
are no existing or closed sanitary or solid waste landfills, or hazardous waste treatment, storage or disposal facilities on or,
affecting the Real Estate except where such existence could not reasonably be expected to have a Material Adverse Effect.

 

(f)       The
Property Parties have not received any written notice from any party that any use, operation, or condition of the business being
conducted on any Real Estate has caused any adverse condition on any other property that could reasonably be expected to result
in a claim under applicable Environmental Law that would have a Material Adverse Effect, nor does any Property Party have knowledge
of any existing facts or circumstances that could reasonably be expected to form the basis for such a claim.

 

§6.21
         Leases. The Borrower has delivered to the Agent true and complete
copies of the Hotel Leases and the other Leases (if any) and any amendments thereto relating to each Mortgaged Property. The Hotel
Leases and the other Leases, if any, previously delivered to Agent as described in the preceding sentence constitute as of the
date thereof the sole agreements relating to leasing or licensing of space at such Mortgaged Property and in the Building relating
thereto. Except as set forth in Schedule 6.22, the Hotel Leases and the other Leases, if any, reflected therein are, as
of the date of inclusion of the applicable Mortgaged Property in the Collateral, in full force and effect in accordance with their
respective terms, without any payment default or any other material default thereunder, nor are there any defenses, counterclaims,
offsets, concessions or rebates available to any tenant thereunder, and except as reflected in Schedule 6.22, no Property
Party has given or made, any notice of any payment or other material default, or any claim, which remains uncured or unsatisfied,
with respect to any of the Hotel Leases and the other Leases, if any, and, to Borrower’s knowledge, there is no basis for
any such claim or notice of default by any tenant or Master Tenant which would result in a Material Adverse Effect. The Property
Parties know of no condition which with the giving of notice or the passage of time or both would constitute a default on the
part of any tenant or Master Tenant with respect to the material terms under the Hotel Leases and the other Leases, if any, or
of the respective Subsidiary Guarantor as landlord and/or tenant thereunder. No security deposit or advance rental or fee payment
has been made by any lessee or licensor under the Hotel Leases and the other Leases, if any, except as may be specifically designated
in the copies of the Hotel Leases and the other Leases, if any, furnished to the Agent. No property other than the Mortgaged Property
which is the subject of the applicable Hotel Leases and the other Leases, if any, is necessary to comply with the requirements
(including, without limitation, parking requirements) contained in any Hotel Lease or Lease, with the exception of the Parking
Deck Reciprocal Easements and Operating, Reciprocal Maintenance and Restrictive Covenants Agreement with respect to the Lyndhurst
Property.

 

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§6.22
         Property. Each of the Mortgaged Properties, and the actual or
proposed use and operation thereof, is in material compliance with all applicable federal and state law and governmental regulations
and any local ordinances, orders or regulations, including without limitation, laws, regulations and ordinances relating to zoning,
building codes, subdivision, fire protection, health, safety, handicapped access, historic preservation and protection, wetlands,
tidelands, and Environmental Laws except in cases that would not reasonably cause a Material Adverse Effect. All water, sewer,
electric, gas, telephone and other utilities necessary for the use and operation of the Mortgaged Property are installed to the
property lines of the Mortgaged Property through dedicated public rights of way or through perpetual private easements with respect
to which the applicable Mortgage creates a valid and enforceable first lien subject to Permitted Liens and, except in the case
of drainage facilities, are connected to the Building located thereon with valid permits and are adequate to service the Building
in compliance with Applicable Law. Each Mortgaged Property has direct access to a dedicated public street or perpetual private
ways (with direct access to public roads) and with respect to which access the applicable Mortgage creates a valid and enforceable
first lien. There are no unpaid or outstanding real estate or other taxes or assessments on or against any of the Mortgaged Properties
which are payable by any Property Party (except only real estate or other taxes or assessments, that are not yet delinquent or
are being protested as permitted by this Agreement). Each Mortgaged Property is separately assessed for purposes of real estate
tax assessment and payment. There are no unpaid or outstanding real estate or other taxes or assessments on or against any other
property of the Property Parties or their respective Subsidiaries which are payable by any of such Persons in any material amount
(except only real estate or other taxes or assessments, that are not yet delinquent or are being protested as permitted by this
Agreement). There are no pending, or, to the knowledge of Borrower, threatened or contemplated, eminent domain proceedings against
any of the Mortgaged Properties. None of the Mortgaged Properties is now damaged in any material respects as a result of any fire,
explosion, accident, flood or other casualty. None of the Property Parties has received any outstanding notice from any insurer
or its agent requiring performance of any work with respect to any of the Mortgaged Properties or canceling or threatening to
cancel any policy of insurance, and each of the Mortgaged Properties complies with the material requirements of all of the Property
Parties’ insurance carriers. No person or entity has any right or option to acquire any Mortgaged Property or any Building
thereon or any portion thereof or interest therein, except for certain the ordinary course rights of parties under Hotel Transactions.

 

§6.23
         Brokers. None of the Credit Parties nor any of their respective
Subsidiaries has engaged or otherwise dealt with any broker, finder or similar entity in connection with this Agreement or the
Loans contemplated hereunder.

 

§6.24
        Other Debt. None of the Property Parties or their respective Subsidiaries
is in default of the payment of any Indebtedness or the performance of any material obligation under any agreement, mortgage,
deed of trust, security agreement, financing agreement or indenture to which any of them is a party. None of the Property Parties
or their respective Subsidiaries is a party to or bound by any agreement, instrument or indenture that may require the subordination
in right or time or payment of any of the Obligations to any other indebtedness or obligation of any Property Party or their respective
Subsidiaries. Schedule 6.24 hereto sets forth all agreements, mortgages, deeds of trust, financing agreements or other
material agreements with respect to any Mortgaged Property binding upon the Property Parties or their respective properties and
entered into by a Property Party or their respective Subsidiaries as of the date of this Agreement and the Property Parties have
provided the Agent with true, correct and complete copies thereof.

 

§6.25
         Solvency. As of the Closing Date and after giving effect to
the transactions contemplated by this Agreement and the other Loan Documents, including the Loan made or to be made hereunder,
no Credit Party is insolvent on a balance sheet basis such that the sum of such Person’s assets exceeds the sum of such
Person’s liabilities, each Credit Party is able to pay its debts as they become due, and each Credit Party has sufficient
capital to carry on its business.

 

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§6.26
         No Bankruptcy Filing. No Credit Party nor any of their respective
Subsidiaries is contemplating either the filing of a petition by it under any state or federal bankruptcy or insolvency laws or
the liquidation of its assets or property, and the Credit Parties have no knowledge of any Person contemplating the filing of
any such petition against it.

 

§6.27
         No Fraudulent Intent. Neither the execution and delivery of
this Agreement or any of the other Loan Documents nor the performance of any actions required hereunder or thereunder is being
undertaken by any Credit Party with or as a result of any actual intent by any of such Persons to hinder, delay or defraud any
entity to which any of such Persons is now or will hereafter become indebted.

 

§6.28
         Transaction in Best Interests of Credit Parties; Consideration. The
transaction evidenced by this Agreement and the other Loan Documents is in the best interests of each Credit Party. The direct
and indirect benefits to inure to the Credit Parties pursuant to this Agreement and the other Loan Documents constitute “reasonably
equivalent value” (as such term is used in §548 of the Bankruptcy Code) and “valuable consideration,” “fair
value,” and “fair consideration,” (as such terms are used in any applicable state fraudulent conveyance law),
in exchange for the benefits to be provided by the Credit Parties pursuant to this Agreement and the other Loan Documents, and
but for the willingness of each Guarantor to be a Guarantor of the Loan, the Borrower would be unable to obtain the financing
contemplated hereunder which financing will enable the Borrower to have available financing to conduct and expand their business.

 

§6.29
         Anti-Corruption; Sanctions. None of the Credit Parties is (or
will be) (i) a Sanctioned Person, (ii) located, organized or resident in a Designated Jurisdiction or (iii) to Borrower’s
knowledge, is or has been (within the previous five (5) years) engaged in any transaction with any Sanctioned Person or any Person
who is located, organized or resident in any Designated Jurisdiction to the extent that such transactions would violate Sanctions.
Each (i) Credit Party, Affiliate, and their respective officers, employees, and directors and (ii) to the knowledge of the Credit
Parties, any agent of a Borrower or any Affiliate that will act in any capacity in connection with or benefit from the Obligations
or any other transactions contemplated hereby, are in compliance, in all material respects, with Anti-Corruption Laws and applicable
Sanctions. Neither the Loan, nor the proceeds from the Loan, has been used, directly or indirectly, or has otherwise been made
available to fund any activity or business in any Designated Jurisdiction or, to Borrower’s knowledge, (x) to fund any activity
or business with any Sanctioned Person, or (y) in any other manner that will result in a violation by any Credit Party, or any
Lender, or the Agent, of Sanctions. Neither the making of the Loan hereunder nor the use of proceeds thereof will violate the
Patriot Act, the Trading with the Enemy Act, as amended, or any of the foreign assets control regulations of the United States
Treasury Department (31 C.F.R., Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating thereto
or successor statute thereto. The Credit Parties are in compliance in all material respects with the Patriot Act.

 

§6.30
         REIT Status. REIT has elected status as a real estate investment
trust under Section 856 of the Code and currently is in compliance in all material respects with all provisions of the Code applicable
to the qualification of REIT as a real estate investment trust.

 

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§6.31
         Insurance. Each Credit Party maintains (or causes its respective
tenant or operators to maintain) all insurance coverages required to be maintained pursuant to §7.7 below.

 

§6.32
         Subsidiaries; Organizational Structure. Schedule 6.32
sets forth, as of the date hereof, all of the Subsidiary Guarantors and the Borrower’s other Subsidiaries, the form and
jurisdiction of organization of each Subsidiary, and the owners of the direct ownership interests therein. As of the date hereof,
no Person owns any legal, equitable or beneficial interest in any of the Subsidiary Guarantors except as set forth on such Schedules.
As of the date hereof, the REIT owns at least 90% of the Equity Interests in the Borrower.

 

§6.33
         Compliance with Law. Each Credit Party and each of its Subsidiaries
is, to the best of its knowledge, in compliance in all material respects with all Applicable Laws and all orders, writs, injunctions
and decrees which are applicable to such Credit Party or its Subsidiaries or its respective properties, including, without limitation,
Environmental Laws, except where the failure to do so would not reasonably be expected to result in a Material Adverse Effect.

 

		§7.	AFFIRMATIVE COVENANTS. The Borrower covenants and agrees that,
      so long as the Loan or Note is outstanding:

 

§7.1
           Punctual Payment. The Borrower will duly and punctually
pay or cause to be paid the principal and interest on the Loan and all interest and fees provided for in this Agreement, all in
accordance with the terms of this Agreement and the Notes, as well as all other sums owing pursuant to the Loan Documents in accordance
with the terms hereof.

 

§7.2
           Maintenance of Office. The Credit Parties will maintain
their respective chief executive office at c/o Moody National Companies, 6363 Woodway Drive, Suite 110, Houston, Texas 77057,
or at such other place in the United States of America as the Credit Parties shall designate upon prompt written notice to the
Agent and the Lenders, where notices, presentations and demands to or upon the Credit Parties in respect of the Loan Documents
may be given or made.

 

§7.3
           Records and Accounts. The Credit Parties will keep,
and cause each of their respective Subsidiaries to keep true and accurate records and books of account in which full, true and
correct entries will be made in accordance with GAAP (in each case, in all material respects). Neither any Credit Party nor any
of their respective Subsidiaries shall, without the prior written consent of the Agent, not to be unreasonably withheld, (x) make
any material change to the accounting policies/principles used by such Person in preparing the financial statements and other
information described in §6.4 or §7.4, or (y) change its fiscal year.

 

§7.4
           Financial Statements, Certificates and Information.
Borrower will deliver or cause to be delivered to the Agent with sufficient copies for each of the Lenders:

 

(a)       within
ninety (90) days after the end of each fiscal year, the audited financial statements of the REIT and its Subsidiaries at the end
of such year, including the Consolidated balance sheet of the REIT and its Subsidiaries and the related audited Consolidated statements
of income, changes in capital and cash flows for such year, setting forth in comparative form the figures for the previous fiscal
year and all such statements to be in reasonable detail, prepared on a consolidating basis in accordance with GAAP, together with
a certification by the chief financial officer or chief accounting officer of the REIT that the information contained in such
financial statements fairly presents in all material respects the financial position of the REIT and its Subsidiaries, and accompanied
by an auditor’s report prepared without qualification as to the scope of the audit by Frazier and Deeter, LLC, or another
reputable accounting firm reasonably approved by Agent;

 

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(b)       within
forty-five (45) days after the end of each calendar quarter of each year (other than the fourth quarter), copies of the unaudited
financial statements of the REIT and its Subsidiaries, as at the end of such quarter, including the Consolidated balance sheet
of the REIT and its Subsidiaries and the related unaudited Consolidated statements of income and cash flows for the portion of
the REIT fiscal year then elapsed, all in reasonable detail and prepared on a consolidating basis in accordance with GAAP, together
with a certification by the chief financial officer or chief accounting officer of Borrower that the information contained in
such financial statements fairly presents in all material respects the financial position of the Borrower and its Subsidiaries
on the date thereof (subject to year-end adjustments);

 

(c)       as
soon as available, but in no event later than sixty (60) days following the end of each fiscal year of the REIT and its Subsidiaries,
an annual forecast for the then-current fiscal year, prepared in a manner and in the form of the forecast provided on the Closing
Date or in such other form as is reasonably acceptable to the Agent.

 

(d)       simultaneously
with the delivery of the financial statements referred to in subsections (a) and (b) above, a statement (a “Compliance
Certificate”) certified by the chief financial officer or chief accounting officer of Borrower in the form of Exhibit
F hereto (or in such other form as the Agent may approve from time to time) setting forth in reasonable detail computations
evidencing compliance or non-compliance (as the case may be) with the covenants contained in §9, setting forth reconciliations
to reflect changes in GAAP since the Balance Sheet Date. All income, expense and value associated with Real Estate or other Investments
disposed of during any quarter will be eliminated from calculations, where applicable. The Compliance Certificate shall be accompanied
by copies of the statements of Net Operating Income for such calendar quarter for each of the Mortgaged Properties, prepared on
a basis consistent with the statements furnished to the Agent prior to the date hereof and otherwise in form and substance reasonably
satisfactory to the Agent, together with a certification by the chief financial officer or chief accounting officer of Borrower
that the information contained in such statement fairly presents in all material respects Net Operating Income of the Mortgaged
Properties for such periods;

 

(e)       simultaneously
with the delivery of the financial statements referred to in clause (a) above, the statement of all contingent liabilities involving
amounts of $250,000 or more of Credit Parties and their Subsidiaries which are not reflected in such financial statements or referred
to in the notes thereto (including, without limitation, all guaranties, endorsements and other contingent obligations in respect
of the indebtedness of others, and obligations to reimburse the issuer in respect of any letters of credit);

 

(f)       simultaneously
with the delivery of the financial statements referred to in subsections (a) and (b) above, a copy of any material (i) correspondence
with, or (ii) written dissemination of information with respect to the activities, operations or financial affairs of Borrower,
the Subsidiarity Guarantors or any Mortgaged Property to, the shareholders, partners members or investors of the REIT during such
calendar quarter (including the fourth calendar quarter in each year);

 

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(g)       simultaneously
with the delivery of the financial statements referred to in subsections (a) and (b) above, a statement (i) listing the material
Real Estate owned by the REIT and its Subsidiaries (or in which the Borrower or its Subsidiaries owns an interest) and stating
the location thereof, the date acquired and the acquisition cost, and (ii) listing the Indebtedness of the REIT and its Subsidiaries
(excluding Indebtedness of the type described in §8.1(b)-(d)), which statement shall include, without limitation, a statement
of the original principal amount of such Indebtedness and the current amount outstanding, the holder thereof, the maturity date
and any extension options, the interest rate, the collateral provided for such Indebtedness and whether such Indebtedness is recourse
or non-recourse;

 

(h)       on
or before the tenth day of each month, a calculation of the Consolidated Net Cash Flow of the REIT in the form of Exhibit NCF;

 

(i)       to
the extent requested by Agent, copies of all annual federal income tax returns and amendments thereto of the Credit Parties;

 

(j)       evidence
reasonably satisfactory to Agent of the timely payment of all real estate taxes for the Mortgaged Properties;

 

(k)       not
later than January 31 of each year, an operating budget for the Borrower and its Subsidiaries for such calendar year;

 

(l)       within
thirty (30) days after the end of each calendar month, copies of unaudited property-level financial statements including balance
sheets and the related statements of income and cash flows for all Real Estate owned by the REIT and its Subsidiaries, including
each of the Mortgaged Properties.

 

(m)       simultaneously
with the delivery of the financial statements referred to in subsections (a) and (b) above, delivery of forward looking projections
of the covenants contained in §9, for the current and succeeding three fiscal quarters.

 

(n)       from
time to time such other financial data and information in the possession of the REIT, the Borrower or its Subsidiaries (including
without limitation STR market reports, auditors’ management letters, status of litigation or investigations against the
Credit Parties and any settlement discussions relating thereto, property inspection and environmental reports and information
as to zoning and other legal and regulatory changes affecting the Borrower) as the Agent may reasonably request.

 

Any
material to be delivered pursuant to this §7.4 may be delivered electronically directly to Agent and the Lenders provided
that such material is in a format reasonably acceptable to Agent, and such material shall be deemed to have been delivered to
Agent and the Lenders upon Agent’s receipt thereof. Upon the request of Agent, Borrower shall deliver paper copies thereof
to Agent and the Lenders. Borrower authorizes Agent to disseminate any such materials through the use of Intralinks, SyndTrak
or any other electronic information dissemination system, and the Borrower releases Agent and the Lenders from any liability in
connection therewith.

 

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		§7.5	Notices.

 

(a)       Defaults.
The Credit Parties will promptly upon becoming aware of same notify the Agent in writing of the occurrence of any Default or Event
of Default, which notice shall describe such occurrence with reasonable specificity. If any Person shall give any notice or take
any other action in respect of a claimed default (whether or not constituting an Event of Default) under this Agreement or under
any note, evidence of indebtedness, indenture or other obligation to which or with respect to which any Credit Party or their
respective Subsidiaries is a party or obligor, whether as principal or surety, and such default would permit the holder of such
note or obligation or other evidence of indebtedness to accelerate the maturity thereof, which acceleration would either cause
a Default or have a Material Adverse Effect, the Credit Parties shall forthwith give written notice thereof to the Agent and each
of the Lenders, describing the notice or action and the nature of the claimed default.

 

(b)       Environmental
Events. The Credit Parties will give notice to the Agent within ten (10) Business Days of becoming aware of (i) any potential
or known Release, or threat of Release, of any Hazardous Substances in violation of any applicable Environmental Laws; (ii) any
violation of any Environmental Laws that any Credit Party or its Subsidiary reports in writing or is reportable by such Person
in writing (or for which any written report supplemental to any oral report is made) to any federal, state or local environmental
agency or (iii) any inquiry, proceeding, investigation, or other action, including a notice from any agency of potential environmental
liability, of any federal, state or local environmental agency or board, that in the case of either clauses (i) – (iii)
above could reasonably be expected to have a Material Adverse Effect, or materially adversely affect the Agent’s liens or
security title on the Collateral pursuant to the Security Documents.

 

(c)       Notification
of Claims Against Collateral. The Credit Parties will give notice to the Agent in writing within five (5) Business Days of
becoming aware of any setoff, claims (including, with respect to the Mortgaged Property, environmental claims), withholdings or
other defenses to which any of the Collateral, or the rights of the Agent or the Lenders with respect to the Collateral, are subject,
to the extent the same would result in a Material Adverse Effect.

 

(d)       Notice
of Litigation and Judgments. The Credit Parties will give notice to the Agent in writing within five (5) Business Days of
becoming aware of any litigation or proceedings threatened in writing affecting any Credit Party or any of their respective Subsidiaries
or to which any Credit Party or any of its Subsidiaries is or is to become a party involving an uninsured claim against any Credit
Party or its Subsidiaries that could reasonably be expected to have a Material Adverse Effect and stating the nature and status
of such litigation or proceedings. The Credit Parties will give notice to the Agent, in writing, in form and detail reasonably
satisfactory to the Agent and each of the Lenders, within ten (10) days of any judgment not covered by insurance, whether final
or otherwise, against any Credit Party or any of their respective Subsidiaries in an amount in excess of $1,000,000.

 

(e)       Notice
of Governmental Investigations. The Credit Parties will give notice to the Agent within five (5) Business Days of becoming
aware of the filing or commencement of, or any material development in, any action, suit, proceeding, audit, claim, demand, order
or dispute with, or by, any Governmental Authority against or affecting any Credit Party, its Subsidiary or any Mortgaged Property.

 

(f)       ERISA.
The Credit Parties will give notice to the Agent within ten (10) days after any Credit Party (i) gives or is required to give
notice to the PBGC of any “reportable event” (as defined in §4043 of ERISA) with respect to any Guaranteed Pension
Plan, Multiemployer Plan or Employee Benefit Plan, or knows that the plan administrator of any such plan has given or is required
to give notice of any such reportable event; (ii) gives a copy of any notice (including any received from the trustee of a Multiemployer
Plan) of complete or partial withdrawal liability under Title IV of ERISA; or (iii) receives any notice from the PBGC under Title
IV or ERISA of an intent to terminate or appoint a trustee to administer any such plan, in each case if such event or occurrence
would reasonably be expected to have a Material Adverse Effect.

 

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(g)       Debt.
The Credit Parties will give notice to the Agent, within five (5) Business Days of the earlier of (i) the contractual consummation
or incurrence thereof or (ii) becoming aware of the filing or commencement of, of any additional debt, encumbrances or mortgages
on any Real Estate owned directly or indirectly by Borrower.

 

(h)       Notification
to Lenders. Within five (5) Business Days after receiving any notice under this §7.5, the Agent will forward a copy thereof
to each of the Lenders, together with copies of any certificates or other written information that accompanied such notice.

 

		§7.6	Existence;
                                         Maintenance of Properties.

 

(a)       The
Credit Parties will preserve and keep in full force and effect their legal existence in the jurisdiction of its incorporation
or formation. The Credit Parties will preserve and keep in full force all of their rights and franchises, the preservation of
which is necessary to the conduct of their business.

 

(b)       Each
Credit Party (i) will cause all of its properties used or useful in the conduct of its business or the business of its Subsidiaries,
including the Mortgaged Properties to be maintained and kept in good condition, repair and working order (ordinary wear and tear
excepted) and supplied with all necessary equipment, and (ii) will cause to be made all necessary repairs, renewals, replacements,
betterments and improvements thereof in all cases in which the failure to do so would cause a Material Adverse Effect (except
for a casualty when proceeds are not made available by the Agent or the applicable lender). Without limitation of the obligations
of the Credit Parties under this Agreement with respect to the maintenance of the Mortgaged Properties, the Credit Parties shall
promptly and diligently comply with the recommendations of the Environmental Engineer concerning the maintenance, operation or
upkeep of the Mortgaged Properties contained in the building inspection and environmental reports delivered to the Agent or otherwise
obtained by the Credit Parties with respect to the Mortgaged Property.

 

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		§7.7	Insurance;
                                         Condemnation.

 

(a)       The
Credit Parties will (and will cause their respective Subsidiaries to), at their expense, procure and maintain (or cause to be
procured and maintained) for the benefit of the Credit Parties, their respective Subsidiaries and the Agent, insurance policies
issued by such insurance companies, in such amounts, in such form and substance, and with such coverages, endorsements, deductibles
and expiration dates as are reasonably acceptable to the Agent, and to the extent applicable, as required by the Hotel Documents,
taking into consideration the property size, use, and location that a commercially prudent lender would require, providing the
following types of insurance covering each Mortgaged Property:

 

(i)       “All
Risk” or “Special Form” property insurance, including coverage from loss or damage arising from flood, earthquake,
and acts of terrorism (with such coverage satisfactory to Agent), and comprehensive boiler and machinery or “breakdown”
coverage on each Building owned by the Credit Parties and their Subsidiaries in an amount not less than the full insurable replacement
cost of each Building. As approved by Agent, flood, earthquake and boiler and machinery/breakdown coverages may be subject to
sublimits less than the Building’s insurable replacement cost. Losses shall be valued on a replacement cost basis, and coinsurance
(if any) shall be waived. The deductibles shall not exceed $25,000.00 for physical damages, a 24-hour waiting period for business
interruption and five percent (5%) of the insured value per location for earthquake or named windstorm. Full insurable replacement
cost as used herein means the cost of replacing the Building (exclusive of the cost of excavations, foundations and footings below
the lowest basement floor) without deduction for physical depreciation thereof;

 

(ii)       During
the course of construction or repair of any Building, the insurance required by clause (i) above shall be written on a builder’s
risk, completed value, non-reporting form, meeting all of the terms required by clause (i) above, covering the total value of
work performed, materials, equipment, machinery and supplies furnished, existing structures, and temporary structures being erected
on or near the Mortgaged Property, including coverage against collapse and damage during transit or while being stored off-site,
and containing a soft costs (including loss of rents) coverage endorsement and a permission to occupy endorsement;

 

(iii)       If
not insured by the flood insurance required under (i) above, flood insurance if at any time any Building is located in any federally
designated “special hazard area” (including any area having special flood, mudslide and/or flood-related erosion hazards,
and shown on a Flood Hazard Boundary Map or a Flood Insurance Rate Map published by the Federal Emergency Management Agency as
Zone A, AO, Al-30, AE, A99, AH, VO, V1-30, VE, V, M or E), in an amount equal to the full replacement cost or the maximum amount
then available under the National Flood Insurance Program;

 

(iv)       Rent
loss insurance in an amount sufficient to recover at least the total estimated gross receipts from all sources of income, including
rental income and hotel revenues, for the Mortgaged Property for a twelve (12) month period;

 

(v)       Commercial
general liability insurance against claims for personal injury (to include bodily injury and personal and advertising injury)
and property damage liability, on an occurrence basis, if commercially available, with such coverages as the Agent may reasonably
request (including contractual liability coverage, completed operations coverage for a period of two (2) years following completion
of construction of any improvements on the Mortgaged Property, and coverages equivalent to an ISO broad form endorsement), with
a general aggregate limit of not less than $2,000,000, a completed operations aggregate limit of not less than $2,000,000, and
a combined single “per occurrence” limit of not less than $1,000,000 for bodily injury and property damage;

 

(vi)       During
the course of construction or repair of any improvements on the Mortgaged Property, owner’s contingent or protective liability
insurance covering claims not covered by or under the terms or provisions of the insurance required by clause (v) above;

 

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(vii)       Employer’s
liability insurance with respect to the Borrower and Subsidiary Guarantor’s employees (or if such parties have no employees,
with respect to the employees of the managers under the Management Agreements);

 

(viii)       Umbrella
liability insurance with limits of not less than $10,000,000, to be in excess of the limits of the insurance required by clauses
(v), (vi) and (vii) above, with coverage at least as broad as the primary coverages of the insurance required by clauses (v),
(vi) and (vii) above, with any excess liability insurance to be at least as broad as the coverages of the lead umbrella policy.
All such policies shall be endorsed to provide defense coverage obligations;

 

(ix)       Workers’
compensation insurance for all employees of the Borrower or its Subsidiaries engaged on or with respect to the Mortgaged Property
with limits as required by Applicable Law (or if such parties have no employees, with respect to all employees of the managers
under the Management Agreements); and

 

(x)       Such
other insurance in such form and in such amounts as may from time to time be reasonably required by the Agent against other insurable
hazards and casualties which at the time are commonly insured against in the case of properties of similar character and location
to the Mortgaged Property.

 

The
Credit Parties shall pay (or cause to be paid) all premiums on insurance policies. The insurance policies with respect to all
Mortgaged Property provided for in clauses (v), (vi) and (viii) shall name the Agent and each Lender as an additional insured
and shall contain a cross liability/severability endorsement. The insurance policies provided for in clauses (i), (ii), (iii)
and (iv) above as to each Mortgaged Property shall name the Agent as mortgagee and loss payee, shall be first payable in case
of loss to the Agent, and shall contain mortgage clauses and lender’s loss payable endorsements in form and substance acceptable
to the Agent. The Borrower or the Subsidiary Guarantors shall deliver duplicate originals or certified copies of all such policies
to the Agent, and the Borrower or the Subsidiary Guarantors shall promptly furnish to the Agent all renewal notices and evidence
that all premiums or portions thereof then due and payable have been paid. At least thirty (30) days prior to the expiration date
of the policies, the Borrower or the Subsidiary Guarantors shall deliver to the Agent evidence of continued coverage, including
a certificate of insurance, as may be satisfactory to the Agent; provided, however, if Borrower or the Subsidiary Guarantors are
continuing insurance renewal negotiations at such date, then Borrower or the Subsidiary Guarantors shall inform Agent in writing
of the status of such insurance renewal negotiations and any anticipated or potential material changes in coverages, deductibles
or limits at least thirty (30) days prior to the expiration date of such policies, and shall in any event provide evidence of
extension, renewal or replacement prior to the expiration date of the current policies.

 

(b)       All
policies of insurance required by this Agreement shall contain clauses or endorsements to the effect that (i) no act or omission
of the Credit Parties or anyone acting for the Credit Parties (including, any representations made in the procurement of such
insurance), which might otherwise result in a forfeiture of such insurance or any part thereof, no occupancy or use of the Mortgaged
Property for purposes more hazardous than permitted by the terms of the policy, and no foreclosure or any other change in title
to the Mortgaged Property or any part thereof, shall affect the validity or enforceability of such insurance insofar as the Agent
is concerned, (ii) the insurer waives any right of set off, counterclaim, subrogation, or any deduction in respect of any liability
of the Credit Parties and the Agent, (iii) such insurance is primary and without right of contribution from any other insurance
which may be available, (iv) such policies shall not be modified, canceled or terminated prior to the scheduled expiration date
thereof without the insurer thereunder giving at least thirty (30) days prior written notice except in cases of non-payment of
premium, ten (10) days prior written notice, to the Agent by certified or registered mail, and (v) that the Agent or the Lenders
shall have the right but not the obligation to pay any premiums thereon or any assessments thereunder, and the Agent and Lenders
shall in no event be subject to any coinsurance liability.

 

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(c)       The
insurance required by this Agreement may be effected through a blanket policy or policies covering additional locations and property
of the Credit Parties and other Persons not included in the Mortgaged Property, provided that such blanket policy or policies
comply with all of the terms and provisions of this §7.7 and contain endorsements or clauses assuring that any claim recovery
will not be less than that which a separate policy would provide, including, without limitation, a lender’s loss payable
endorsement favoring the Agent with respect to property insurance and a per location aggregate that applies to the commercial
general liability insurance.

 

(d)       All
policies of insurance required by this Agreement shall be issued by companies licensed to do business in the State where the policy
is issued and also in the States where the Mortgaged Property is located and having a rating in Best’s Key Rating Guide
of at least “A” and a financial size category of at least “X.”

 

(e)       No
Credit Party shall carry separate insurance, concurrent in kind or form or contributing in the event of loss, with any insurance
required under this Agreement unless such insurance complies with the terms and provisions of this §7.7.

 

(f)       In
the event of any loss or damage to a Mortgaged Property in excess of $1,000,000, the Borrower shall give prompt written notice
to the insurance carrier and the Agent. Subject to the provisions of (g) below, each Credit Party hereby irrevocably authorizes
and empowers the Agent, at the Agent’s option and in the Agent’s sole discretion or at the request of the Required
Lenders in their sole discretion, as its attorney in fact, to make proof of such loss, to adjust and compromise any claim under
insurance policies, to appear in and prosecute any action arising from such insurance policies, to collect and receive Insurance
Proceeds and Condemnation Proceeds, and to deduct therefrom the Agent’s reasonable expenses incurred in the collection of
such Insurance Proceeds; provided, however, that so long as no Event of Default has occurred and is continuing and
so long as the applicable Credit Party shall in good faith diligently pursue such claim, the applicable Credit Party may make
proof of loss and appear in any proceedings or negotiations with respect to the adjustment of such claim, except that the applicable
Credit Party may not settle, adjust or compromise any such claim without the prior written consent of the Agent, which consent
shall not be unreasonably withheld or delayed; provided, further, that the applicable Credit Party may make proof
of loss and adjust and compromise any claim under casualty insurance policies which is in an amount less than $1,000,000 so long
as no Event of Default has occurred and is continuing and so long as the applicable Credit Party shall in good faith diligently
pursue such claim. Subject to the provisions of (g) below, the Credit Parties further authorize the Agent, at the Agent’s
option, to (i) apply the balance of such Insurance Proceeds and Condemnation Proceeds to the payment of the Obligations whether
or not then due, or (ii) if the Agent shall require the reconstruction or repair of the Mortgaged Property, to hold the balance
of such proceeds as trustee to be used to pay taxes, charges, sewer use fees, water rates and assessments which may be imposed
on the Mortgaged Property which are then due and payable and the Obligations as they become due during the course of reconstruction
or repair of the Mortgaged Property and to pay, in accordance with such terms and conditions as the Agent or other lenders of
construction projects may prescribe, for the costs of reconstruction or repair of the Mortgaged Property, and upon completion
of such reconstruction or repair to pay the excess to Borrower.

 

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(g)       Notwithstanding
the foregoing or anything to the contrary contained in the Mortgages, the Agent shall make net Insurance Proceeds and Condemnation
Proceeds available to the applicable Credit Party to reconstruct and repair a Mortgaged Property, in accordance with such terms
and conditions as the Agent may prescribe in the Agent’s discretion for the disbursement of the proceeds, provided
that (i) less than twenty-five percent (25%) of the total floor area of the damaged Building has been damaged, destroyed or rendered
unusable as a result of such occurrence, (ii) no Event of Default shall have occurred and be continuing, (iii) the applicable
Credit Party shall have provided to the Agent additional security reasonably satisfactory to Agent in an amount equal to the amount
reasonably estimated by the Agent to be the amount in excess of such proceeds which will be required to complete such repair or
restoration, (iv) the Agent shall have approved the plans and specifications, construction budget, construction contracts, and
construction schedule for such repair or restoration (provided that the Agent shall not disapprove such plans and specifications
if the Building is to be restored to substantially its condition immediately prior to such damage), (v) the Agent shall reasonably
determine that such repair or reconstruction can be completed prior to the Maturity Date, (vi) the Agent shall receive evidence
reasonably satisfactory to it that any such restoration, repair or rebuilding complies in all respects with any and all applicable
state, federal and local laws, ordinances and regulations, including without limitation, zoning laws, ordinances and regulations,
and that all required permits, licenses and approvals relative thereto have been or will be issued in a manner so as not to materially
impede the progress of restoration, (vii) the Agent shall receive evidence reasonably satisfactory to it that the insurer under
such policies of fire or other casualty insurance does not assert any defense to payment under such policies against any Credit
Party or the Agent, and (viii) with respect to any Taking, Agent shall determine that following such repair or restoration there
shall be no more than the lesser of (A) a twenty-five percent (25%) reduction in the annual income from the Mortgaged Property
so affected by such specific condemnation or taking (excluding any proceeds from business interruption insurance or proceeds from
such award allocable to income from operations) or (B) a fifteen percent (15%) reduction in aggregate annual income from the Mortgaged
Properties (excluding any proceeds from rent loss insurance or proceeds of such award allocable to income from operations), after
giving effect to the current condemnation or taking and any previous condemnations or takings which may have occurred. Any excess
Insurance Proceeds, after refunding to the Borrower any amount invested by the Borrower for any reconstruction, shall be applied
to the payment of the Obligations, unless in either case by the terms of the applicable insurance policy the excess proceeds are
required to be returned to such insurer. Any excess Condemnation Proceeds, after refunding to the Borrower any amount invested
by the Borrower for any reconstruction, shall be applied to the payment of the Obligations. In no event shall the provisions of
this section be construed to extend the Maturity Date or to limit in any way any right or remedy of the Agent upon the occurrence
of an Event of Default hereunder. If the Mortgaged Property is sold or the Mortgaged Property is acquired by the Agent, all right,
title and interest of the Credit Parties in and to any insurance policies and unearned premiums thereon (other than in connection
with any blanket policy) and in and to the proceeds thereof resulting from loss or damage to the Mortgaged Property prior to the
sale or acquisition shall pass to the Agent or any other successor in interest to the Credit Parties or purchaser of the Mortgaged
Property.

 

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(h)       The
Credit Parties and their respective Subsidiaries (as applicable) will, at their expense, procure and maintain insurance covering
the Credit Parties and their respective Subsidiaries (as applicable) and the Real Estate other than the Mortgaged Properties with
financially sound and reputable insurance companies not Affiliates of any Credit Party in such amounts and against such risks
and casualties as are customary for properties of similar character and location, due regard being given to the type of improvements
thereon, their construction, location, use and occupancy.

 

§7.8           
Taxes. The Borrower, the Subsidiary Guarantors and their respective Subsidiaries, will duly pay and discharge, or cause to be
paid and discharged, all taxes, assessments and other governmental charges imposed upon them or upon the Mortgaged Properties
or the other Real Estate, sales and activities, or any part thereof, or upon the income or profits therefrom, provided
that any such tax, assessment, charge or levy or claim need not be paid if the validity or amount thereof shall currently be contested
in good faith by appropriate proceedings which shall suspend the collection thereof with respect to such property, neither such
property nor any portion thereof or interest therein would be in any danger of sale, forfeiture or loss by reason of such proceeding
and the Credit Parties shall have set aside (or caused their Subsidiaries to set aside) on their books adequate reserves in accordance
with GAAP; and provided, further, that forthwith upon the commencement of proceedings to foreclose any lien that
may have attached as security therefor, the Credit Parties will either (i) provide a bond issued by a surety reasonably acceptable
to the Agent and sufficient to stay all such proceedings or (ii) if no such bond is provided, pay each such tax, assessment, charge
or levy.

 

§7.9           
Inspection of Properties and Books. The Credit Parties will permit Agent and the Lenders, at the Borrower’s expense if an
Event of Default is in existence, and upon reasonable prior notice, to enter upon any of the Mortgaged Properties during normal
business hours, to examine the books of account of the Credit Parties (and to make copies thereof and extracts therefrom) and
to discuss the affairs, finances and accounts of the Property Parties with, and to be advised as to the same by, their respective
officers, partners or members, all at such reasonable times and intervals as the Agent or any Lender may reasonably request. The
Lenders shall use good faith efforts to coordinate such visits and inspections so as to minimize the interference with and disruption
to the normal business operations of the Credit Parties.

 

§7.10
         Compliance with Laws, Contracts, Licenses, and Permits. The
Credit Parties will (and will cause their Subsidiaries to) comply in all respects with (i) all Applicable Law and regulations
now or hereafter in effect wherever their business is conducted, including all Environmental Laws, (ii) the provisions of their
corporate charter, partnership agreement, limited liability company agreement or declaration of trust, as the case may be, and
other charter documents and bylaws, (iii) all agreements and instruments to which it is a party or by which they or any of their
properties may be bound, (iv) all applicable decrees, orders, and judgments, and (v) all licenses and permits required by Applicable
Law and regulations for the conduct of their business or the ownership, use or operation of the properties, except where a failure
to so comply with any of clauses (i) through (v) could not reasonably be expected to have a Material Adverse Effect. If any authorization,
consent, approval, permit or license from any officer, agency or instrumentality of any government shall become necessary or required
in order that the Credit Parties may fulfill any of their obligations hereunder, the Credit Parties will immediately take or cause
to be taken all reasonable steps necessary to obtain such authorization, consent, approval, permit or license and furnish the
Agent and the Lenders with evidence thereof. The Credit Parties shall develop and implement such programs, policies and procedures
as are necessary to comply with the Patriot Act and shall promptly advise Agent in writing in the event that any Credit Party
shall determine that any investors in the Credit Party are in violation of such act.

 

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§7.11
         Further Assurances. The Credit Parties will cooperate with the
Agent and the Lenders and execute such further instruments and documents as the Lenders or the Agent shall reasonably request
to carry out to their satisfaction the transactions contemplated by this Agreement and the other Loan Documents.

 

§7.12         
Management. The Property Parties shall not enter into any Management Agreement with a third party manager for the Mortgaged Property
without the prior written consent of the Agent (which shall not be unreasonably withheld), and after such approval, no such Management
Agreement shall be modified in any material respect or terminated without Agent’s prior written approval, such approval
not to be unreasonably withheld. Agent may condition any approval of a new manager upon the execution and delivery to Agent of
collateral assignment of such Management Agreement to Agent and a subordination of the manager’s rights thereunder to the
rights of the Agent and the Lenders under the Loan Documents.

 

§7.13
         Leases of the Property. The Credit Parties will give notice
to the Agent of any proposed new Lease at any Mortgaged Property for the lease of space therein and shall provide to the Agent
a copy of the proposed Lease and any and all agreements or documents related thereto, current financial information for the proposed
tenant and any guarantor of the proposed Lease and such other information as the Agent may reasonably request. No Property Party
will lease all or any portion of a Mortgaged Property or amend, supplement or otherwise modify, terminate or cancel, or accept
the surrender of, or consent to the assignment or subletting of, or grant any concessions to or waive the performance of any obligations
of any tenant, lessee or licensee under, any now existing or future Hotel Lease or any other Lease at any Mortgaged Property without
the prior written consent of the Agent, other than pursuant to (a) Hotel Transactions, and (b) other non-material leases (including
cell site leases) entered into in the ordinary course of the subject Mortgaged Property Owner or Master Tenant, as applicable.
At Agent’s request, the Credit Parties shall cause each future tenant to enter into a non-disturbance agreement in form
and substance reasonably acceptable to the Agent and such tenant with respect to each Lease.

 

§7.14
         Business Operations. The Credit Parties and their respective
Subsidiaries shall operate their respective businesses in substantially the same manner and in substantially the same fields and
lines of business as such business is now conducted and in compliance with the terms and conditions of this Agreement and the
Loan Documents. The Credit Parties and their Subsidiaries will not, directly or indirectly, engage in any line of business other
than the ownership, operation and development of hospitality properties or businesses incidental thereto.

 

§7.15
         Registered Servicemark. Without prior written notice to the
Agent, none of the Mortgaged Properties shall be owned or operated by the Credit Parties under any registered or protected trademark,
tradename, servicemark or logo other than pursuant to the applicable Franchise Agreement.

 

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§7.16
    Ownership of Real Estate. Without the prior written consent of Agent, all Real Estate and all interests (whether direct or indirect)
of Borrower, Guarantor or their Subsidiaries in any real estate assets now owned or leased or acquired or leased after the date
hereof shall be owned or leased directly by Borrower or a Subsidiary of Borrower and shall not be owned directly by the REIT.

 

§7.17
    Net Equity. For so long as the Obligations are outstanding, the REIT shall continue using commercially reasonable efforts to raise
equity. All Net Equity shall be deposited in the Collections Account promptly upon receipt by the REIT (with the REIT agreeing
to deliver such direction letters as the Agent may require to effect the automatic transfer of funds from the Other Deposit Account
maintained by the REIT to the Collections Account), and, monthly, on or before the tenth day of each month, the Borrower shall
cause 100% of the excess Consolidated Net Cash Flow of the REIT and each of its Subsidiaries for the prior month, after payment
of Existing Debt Service, to be deposited/transferred to the Collections Account.

 

§7.18
     Deposit Accounts, Cash Management; Reserves.

 

(a)          The
REIT and each of its Subsidiaries (as to the Subsidiaries, subject to any requirements of any Existing Debt) shall establish and
at all times maintain with KeyBank (the “Depository Bank”), all of their deposit and other bank accounts (each,
together with the Collection Account, an “Account”) with the Agent, including without limitation, all operating
accounts associated with each Mortgaged Property (and any unrestricted cash and distributions to Borrower shall be deposited into
the into such Accounts), whether held by the applicable Subsidiary Guarantor or the applicable Master Tenant, with each such Account,
excepting the Unrestricted Cash Account, being subject to a perfected lien in favor of the Agent, on behalf of the Lenders, as
additional Collateral to secure the Obligations.

 

(i)        Except
for an Other Deposit Account, neither Borrower nor any Subsidiary will maintain any other depository accounts relating in any
way to the Mortgaged Property with any other depository bank.

 

(ii)       All
cash and other proceeds of the operation of each Mortgaged Property shall be deposited in a separate lockbox account for each
Mortgaged Property maintained with the Agent, with all deposits in each respective lockbox account then being transferred to separate
controlled accounts in the name of each Mortgaged Property Owner (each, a “Mortgaged Property Controlled Account”)
maintained with the Agent, with amounts then being disbursed from each such Mortgaged Property Controlled Account as provided
in Exhibit 7.17(a)(i).

 

(b)         On
or prior to the Closing Date, the Borrower shall have established and shall at all times maintain, with the Depository Bank, in
the name of Borrower, for the benefit of Agent, for the ratable benefit of the Lenders, as secured party, a deposit account (the
“Collection Account”). The Collection Account and the funds deposited therein shall serve as additional security
for the Obligations. Agent shall have sole dominion and control over disbursements from the Collection Account, subject to the
terms hereof. On a monthly basis, on the first Business Day of each month, the amounts on deposit in the Collection Account shall
be applied in the manner set forth in §7.18 (c) hereof. Borrower agrees that, prior to the payment in full of the Obligations,
it shall not, nor shall it permit any other Person, to amend or modify the instructions to the Depository Bank set forth in this
§7.18 without the prior written consent of Agent (which consent Agent may grant or withhold in its reasonable discretion).

 

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(c)          Unless
an Event of Default has occurred (in which event the Agent shall have sole discretion of the further use of the funds contained,
other than Collected Taxes, in any Account and may apply all such amounts against the Obligations in such fashion as the Agent
may deem appropriate), Agent shall on each Interest Payment Date, transfer, or cause the transfer of, amounts from the Collection
Account, to the extent available therein, in the following order of priority:

 

(i)        first,
whether or not an Event of Default exists, and regardless of whether Agent has accelerated the Loan, Agent shall disburse funds
on deposit which represent Collected Taxes to (or at the direction of) the relevant Master Tenant for payment to the relevant
tax authorities; provided that, at Agent’s election such amounts may be paid directly to such tax authorities; provided,
further, that any such amounts shall not constitute rent payable by either Master Tenant to the subject Mortgaged Property Owner
under the subject Master Lease (but instead shall be paid out of such Master Tenant’s own funds); provided, further, that
the foregoing shall not make Agent liable for payment of the Collected Taxes or for any shortfall thereof;

 

(ii)       second,
to the payment of all interest and any fees, expenses or other amounts owed due and payable hereunder;

 

(iii)      third,
to a non-interest bearing account which shall be held by Agent as Collateral, an amount as the Agent from time to time estimates
as necessary to create and maintain a reserve fund from which to pay before the same become due all taxes, assessments, liens
and similar charges on or against all Real Estate owned by the Credit Parties, and all insurance premiums for all Real Estate
owned by the Credit Parties (the “Tax and Insurance Reserve”). In the event of any continuing Event of Default under
this Agreement as a result of which the Obligations have been accelerated, any part or all of the Tax and Insurance Reserve may
be applied, at the option of the Agent, to cure any such Event of Default or to any of the Obligations hereby secured and, in
refunding any part of said reserve fund, the Agent may deal with whomever is the record owner of such property at that time. Provided
no Event of Default is in existence and provided there are sufficient amounts in the Tax and Insurance Reserve to pay the subject
taxes or insurance premiums (x) the amount in the Tax and Insurance Reserve, but not in excess of the applicable real estate taxes
or insurance premiums then due, shall be paid to the taxing authority or the insurer upon written request of Borrower provided
to the Agent at least fifteen (15) Business Days prior to the due date thereof. The foregoing notwithstanding, tax and/or insurance
escrow amounts related to any Real Estate that has a similar tax and insurance reserve in place with a lender shall be excluded
from contributing to the Tax and Insurance Reserve unless the Agent determines the account with the existing lender is underfunded;

 

(iv)      fourth,
$275,000.00 shall be deposited into a non-interest bearing account (the “FF&E Reserve”), for the payment of future
costs and expenses to be incurred by the Credit Parties in connection with FF&E Cost Items. The FF&E Reserve shall be
held by Agent as Collateral and may be disbursed as provided in Exhibit 7.18 attached hereto. In the event of any continuing
Event of Default under this Agreement as a result of which the Obligations have been accelerated, any part or all of the FF&E
Reserve may be applied, at the option of the Agent, to cure any such Event of Default or to any of the Obligations hereby secured
and, in refunding any part of said reserve fund, the Agent may deal with whomever is the record owner of such property at that
time. The foregoing notwithstanding, amount reserved related to any Real Estate that has a similar FF&E reserve in place with
another lender shall be excluded from contributing to the FF&E Reserve unless the Agent determines the account with the existing
lender is underfunded;

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(v)      fifth,
$330,000.00 shall be deposited into a non-interest bearing account (the “PIP Reserve”), for the payment of PIP Costs.
The PIP Reserve shall be held by Agent as Collateral. In the event of any continuing Event of Default under this Agreement as
a result of which the Obligations have been accelerated, any part or all of the PIP Reserve may be applied, at the option of the
Agent, to cure any such Event of Default or to any of the Obligations hereby secured and, in refunding any part of said reserve
fund, the Agent may deal with whomever is the record owner of such property at that time. Provided no Event of Default as a result
of which the Obligations have been accelerated is in existence and provided there are sufficient amounts in the PIP Reserve, Agent
shall disburse to the applicable Credit Party the amount incurred by the applicable Credit Party with respect to PIP Costs as
provided on Exhibit 7.18.

 

(vi)     sixth,
an amount equal to the greater of: (a) 65% of the remaining Consolidated Net Cash Flow (after payment of the amounts set forth
in (i) through (v) above) and (b) $2,000,000.00, to the payment of principal on the Loan, pro rata among the Lenders with respect
to such amounts owing thereto (the “Amortization Payment”). The foregoing notwithstanding, the requirement to make
the Amortization Payment shall cease, once and for so long as the following criteria have been met:

 

(a)       The
Consolidated Leverage Ratio shall not exceed sixty percent (60%);

 

(b)       The
principal balance of the Loan shall not exceed the Mortgaged Assets Mortgageability Amount; and

 

(c)       The
Mortgaged Assets Leverage Ratio shall not exceed sixty percent (60%).

 

(vii)        seventh,
$335,000.00 shall be deposited into a non-interest bearing account (the “Common Distribution Reserve”) for the payment
of distributions. The Common Distribution Reserve shall be held by Agent as Collateral. In the event of any continuing Event of
Default under this Agreement, any part or all of the Common Distribution Reserve may be applied, at the option of the Agent, to
cure any such Event of Default or to any of the Obligations hereby secured and, in refunding any part of said reserve fund, the
Agent may deal with whomever is the record owner of such property at that time. Provided no Event of Default is in existence and
provided there are sufficient amounts in the Common Distribution Reserve, Agent shall disburse to the applicable Credit Party
the amount incurred by the applicable Credit Party with respect to costs related to the ownership of the Real Estate previously
approved in writing by Agent within ten (10) Business Days following the receipt by Agent of a written request from such Credit
Party for disbursement from the Common Distribution Reserve and delivery of all other items reasonably required by Agent in connection
with such request; and

 

(viii)
      Eighth, funds remaining in the Collection Account shall be released to Borrower.

 

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(d)         To
secure the full and punctual payment and performance of the Obligations, Borrower hereby collaterally assigns, grants a security
interest in and pledges to Agent, for the benefit of the Lenders, a first priority continuing security interest in and to, whether
now owned or existing or hereafter acquired or arising and regardless of where located, each Account including each of the reserves
established pursuant to this §7.18, all cash, checks, drafts, securities entitlements, certificates, instruments and other
property, including, without limitation, all deposits and/or wire transfers from time to time deposited or held in, credited to
or made to any such Account, and all proceeds of the foregoing.

 

§7.19
     Keepwell. Each Credit Party that is a Qualified ECP Party at the time that this Credit Agreement becomes effective with respect
to any Hedge Obligation, hereby jointly and severally, absolutely, unconditionally and irrevocably undertakes to provide such
funds or other support as may be needed from time to time by each other Credit Party that is not then an “eligible contract
participant” under the Commodity Exchange Act (a “Specified Party”) to honor all of its obligations under
this Credit Agreement in respect of Hedge Obligations (but, in each case, only up to the maximum amount of such liability that
can be hereby incurred without rendering such Qualified ECP Party’s obligations and undertakings under this §7.19 voidable
under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount). The obligations
and undertakings of each Qualified ECP Party under this §7.19 shall remain in full force and effect until the Obligations
have been indefeasibly paid and performed in full. Each Qualified ECP Party intends this §7.18 to constitute, and this Section
shall be deemed to constitute, a guarantee of the obligations of, and a “keepwell, support, or other agreement” for
the benefit of, each Specified Party for all purposes of the Commodity Exchange Act.

 

§7.20
     Rate Cap. At all times from the date hereof until the applicable Maturity Date, Borrower shall maintain the Rate Cap.

 

§7.21
     REIT Status. REIT will at all times comply with all applicable provisions of the Code necessary to allow REIT to qualify for status
as a real estate investment trust and will at all times elect to be taxed as real estate investment trust pursuant to the Code.

 

§7.22
     Hotel Documents.

 

(a)        The
Credit Parties will duly perform and comply, and cause each Master Tenant to perform and comply, with all of the terms and conditions
of the Hotel Documents in all material respects. The Credit Parties will promptly notify the Administrative Agent in writing upon
becoming aware thereof, of any inquiry, proceeding, investigation, or other action, including a written notice from any franchisor
or any of its agents or Affiliates which has the potential to result in a termination or cancellation of any of the Hotel Documents.
Without limiting the foregoing:

 

(b)       Except
as provided for herein, the Credit Parties and/or each Master Tenant shall maintain each Hotel Document, as applicable, in full
force and effect, and shall, in a timely manner, take all commercially reasonable action necessary to preserve the rights of Fee
Owner and Operating Tenant, and their respective successors and assigns, thereunder, and pay all amounts due thereunder, subject
to a good faith right of contest.

 

(c)        The
Credit Parties and/or each Master Tenant’s respective interests in the Management Agreement, the Hotel Lease and the Franchise
Agreement shall not be subject to any claim, setoff, or encumbrance, other than pursuant to a Security Document or, in the case
of a Master Tenant, the related Master Lease, Assignment of Leases and Rents and Security Agreement.

 

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(d)        No
action by Agent shall constitute any assumption by Agent of any obligations under the Management Agreement, the Hotel Lease or
the Franchise Agreement unless the Agent specifically assumes same in writing; and Borrower shall continue to be liable for any
and all respective obligations of the applicable party thereunder. Except if caused by Agent’s or any Lender’s gross
negligence or willful misconduct, Borrower hereby agrees to indemnify and hold Administrative Agent and each Lender harmless against
and from any actual out-of-pocket loss, cost, liability or expense (including, but not limited to, reasonable attorneys’
fees) incurred by Agent and any Lender and resulting from any failure of a Credit Party or Master Tenant to perform any and all
of its respective obligations under the Management Agreement, the Hotel Lease or the Franchise Agreement.

 

(e)    
   During the existence of an Event of Default, Agent shall have the right (but shall have no obligation) to
take, in its name or in the name of a Mortgaged Property Owner and/or Master Tenant, such action as Agent may at any time
reasonably determine to be necessary or advisable to cure any default under the Management Agreement, the Hotel Lease or the
Franchise Agreement or to protect the rights of Agent and Lenders thereunder. Neither Agent nor any Lender shall incur any
liability if any action so taken by it or in its behalf shall prove to be inadequate or invalid, and each Credit Party hereby
agrees, jointly and severally, to hold Agent and each Lender free and harmless from any actual out-of-pocket loss, cost,
liability or expense (including, but not limited to, reasonable attorneys’ fees) now or hereafter incurred in
connection with such action unless such liability arose from the grossly negligent or reckless act or omission of Agent or
any Lender.

 

(f)        Each
Credit Party hereby irrevocably constitutes and appoints Agent as its attorney-in-fact, which appointment is effective immediately
but exercisable only after the occurrence of an Event of Default that is continuing hereunder or under any of the other Loan Documents,
in such Credit Party’s or Master Tenant’s (in the exercise of a Subsidiary Guarantor’s rights under the applicable
Master Lease, Assignment of Leases and Rents and/or Security Agreement) name or in Agent’s name, to enforce all rights of
Mortgaged Property Owner or Master Tenant (in the exercise of a Subsidiary Guarantor’s rights under the applicable Master
Lease, Assignment of Leases and Rents and/or Security Agreement) under the Management Agreement, the Hotel Lease and/or the Franchise
Agreement, as applicable; provided, however, Agent shall have no obligation to enforce such rights.

 

(g)       Except
as otherwise notified by Agent during any period in which an Event of Default shall exist, each Credit Party and Master Tenant
shall have the right to exercise each of their respective rights under the Management Agreement, the Hotel Lease and the Franchise
Agreement, as applicable; provided, however, neither any Credit Party nor any Master Tenant shall cancel or amend the Management
Agreement, the Hotel Lease or the Franchise Agreement or do, omit to do, or suffer to be done any act which would terminate the
Management Agreement, the Hotel Lease or the Franchise Agreement; and

 

(h)    
   Subject in each instance to the terms of each Collateral Assignment of Hotel Management Agreement, Borrower
shall not permit the Manager to (i) maintain in its own name any of the accounts for the operation of a Mortgaged Property,
(ii) hold in its own name any of the Licenses or Permits for the management or operation of a Mortgaged Property, except for
such Licenses and Permits as to which (x) the Agent has been provided with notice as to the License or Permit which will be
in the name of the Manager and (y) the Manager or Master Tenant shall execute such documentation as may be reasonably
required by the Agent to grant to Agent, a first security interest in and to the said License or Permit, or (iii) own any of
the personal property to be used in the operation of a Mortgaged Property.

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§7.23
    Capital Event. If any Capital Event shall occur with respect to any Credit Party or its Subsidiary, the Net Proceeds of such Capital
Event shall be used to paydown the outstanding principal balance of the Loan as required under §3.2.

 

§7.24
    Ownership of Borrower. The REIT shall at all times own 90% of the Equity Interests in the Borrower.

 

§7.25
    Fees to Affiliates. Subject to the terms of any Assignment of Management Agreement entered into by the Agent and an Affiliate
of any Credit Party, any fees or other payments payable by any Credit Party under any property management agreement, asset management
agreement, advisory agreement or any other similar agreement to any Person that is an Affiliate of any Credit Party shall be subordinated
to this Loan pursuant to a subordination agreement in form and substance reasonably satisfactory to the Agent. The foregoing notwithstanding,
with respect to property management fees only, fees due to any Person that is an Affiliate of any Credit Party that exceed 4%
of the Net Operating Income of such applicable Credit Party shall be subordinate to the Loan.

 

§8.           NEGATIVE
COVENANTS. The Credit Parties covenant and agrees that, so long as the Loan or Note is outstanding:

 

§8.1
     Restrictions on Indebtedness. The Property Parties will not create, incur, assume, guarantee or be or remain liable, contingently
or otherwise, with respect to any Indebtedness other than:

 

(a)       Indebtedness
to the Lenders arising under any of the Loan Documents and Hedge Obligations to a Lender Hedge Provider;

 

(b)       Indebtedness
of the Credit Parties to any other lender relating to any Hedge Obligations;

 

(c)       current
liabilities of the Property Parties incurred in the ordinary course of business but not incurred through (i) the borrowing of
money, or (ii) the obtaining of credit except for credit on an open account basis customarily extended and in fact extended in
connection with normal purchases of goods and services;

 

(d)       judgment
not constituting an Event of Default;

 

(e)       endorsements
for collection, deposit or negotiation; and

 

(f)        Indebtedness
in respect of taxes, assessments, governmental charges or levies and claims for labor, materials and supplies to the extent that
payment therefor shall not at the time be required to be made in accordance with the provisions of §7.8.

 

In
addition to the foregoing, until the REIT achieves a maximum Consolidated Leverage Ratio of 60% and the outstanding balance of
the Loan is reduced to the lesser of (i) the Mortgaged Assets Mortgageability Amount and (ii) a maximum Mortgaged Assets Leverage
Ratio of 60%, the REIT, the Borrower and its Subsidiaries shall be prohibited from incurring any additional Indebtedness or providing
any recourse or guarantees of Indebtedness of any kind.

 

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§8.2
      Restrictions on Liens, Etc. The Credit Parties will not (a) create or incur or suffer to be created or incurred or to exist any
lien, security title, encumbrance, mortgage, pledge, negative pledge, charge, restriction or other security interest of any kind
upon any of their respective property or assets of any character whether now owned or hereafter acquired, or upon the income or
profits therefrom; (b) transfer any of their property or assets or the income or profits therefrom for the purpose of subjecting
the same to the payment of Indebtedness or performance of any other obligation in priority to payment of its general creditors;
(c) suffer to exist for a period of more than thirty (30) days after the same shall have been become due, any Indebtedness or
claim or demand against any of them that if unpaid could by law or upon bankruptcy or insolvency, or otherwise, be given any priority
whatsoever over any of their general creditors unless same are being contested as permitted under the Loan Documents; (d) sell,
assign, pledge or otherwise transfer any accounts, contract rights, general intangibles, chattel paper or instruments, with or
without recourse; or (e) incur or maintain any obligation to any holder of Indebtedness of any of such Persons which prohibits
the creation or maintenance of any lien securing the Obligations (collectively, “Liens”); provided that notwithstanding
anything to the contrary contained herein, the Borrower may create or incur or suffer to be created or incurred or to exist:

 

(i) 
      (A) Liens not yet due or payable on properties to secure taxes, assessments and other
governmental charges (excluding any Lien imposed pursuant to any of the provisions of ERISA or pursuant to any Environmental
Laws) or claims for labor, material or supplies incurred in the ordinary course of business in respect of obligations not
then delinquent or not otherwise required to be paid or discharged under the terms of this Agreement or any of the other Loan
Documents and (B) Liens on assets other than the Collateral and any direct or indirect interest of Borrower in any Subsidiary
of Borrower;

 

(ii)       deposits
or pledges made in connection with, or to secure payment of, workers’ compensation, unemployment insurance, old age pensions
or other social security obligations, bids, trade contracts (other than Indebtedness), purchase contracts, statutory obligations,
performance bonds and other obligations of a like nature incurred in the ordinary course of business;

 

(iii)       encumbrances
on a Mortgaged Property consisting of easements, rights of way, zoning restrictions, restrictions on the use of real property
and defects and irregularities in the title thereto, landlord’s or lessor’s liens under leases to which a Borrower
is a party (including, without limitation, the Hotel Leases), purchase money security interests and other liens or encumbrances,
which do not individually or in the aggregate have a Material Adverse Effect;

 

(iv)      Liens
in favor of the Agent and the Lenders under the Loan Documents to secure the Obligations and the Hedge Obligations;

 

(v)       Customary
banker’s liens on the Other Deposit Accounts permitted to be maintained by a Credit Party under this Agreement; and

 

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(vi)      Liens
and encumbrances on a Mortgaged Property expressly permitted under the terms of the Mortgage relating thereto.

 

§8.3
      Restrictions on Investments. No Credit Party will make or permit to exist or to remain outstanding any Investment except Investments
in:

 

(a)        marketable
direct or guaranteed obligations of the United States of America that mature within one (1) year from the date of purchase by
Borrower or Subsidiary Guarantor;

 

(b)       marketable
direct obligations of any of the following: Federal Home Loan Mortgage Corporation, Student Loan Marketing Association, Federal
Home Loan Banks, Federal National Mortgage Association, Government National Mortgage Association, Bank for Cooperatives, Federal
Intermediate Credit Banks, Federal Financing Banks, Export-Import Bank of the United States, Federal Land Banks, or any other
agency or instrumentality of the United States of America;

 

(c)       demand
deposits, certificates of deposit, bankers acceptances and time deposits of United States banks having total assets in excess
of $100,000,000; provided, however, that the aggregate amount at any time so invested with any single bank having
total assets of less than $1,000,000,000 will not exceed $200,000;

 

(d)       securities
commonly known as “commercial paper” issued by a corporation organized and existing under the laws of the United States
of America or any State which at the time of purchase are rated by Moody’s Investors Service, Inc. or by Standard &
Poor’s Corporation at not less than “P 1” if then rated by Moody’s Investors Service, Inc., and not less
than “A 1”, if then rated by Standard & Poor’s Corporation;

 

(e)       shares
of so-called “money market funds” registered with the SEC under the Investment Company Act of 1940 which maintain
a level per-share value, invest principally in investments described in the foregoing subsections (a) through (d) and have total
assets in excess of $50,000,000;

 

(f)      
 the Other Deposit Accounts; or

 

(g)       Investments
by Borrower in Subsidiaries of Borrower, approved by the Agent in its sole discretion, with all such existing Investments being
deemed approved, which own and operate US-based, operating, limited service hospitality real estate assets with respect to which
Borrower at all times (i) holds at least one hundred percent (100.0%) of the ownership interests, with the exception of the limited
economic interests held by certain third parties in such Subsidiaries, and (ii) controls the day to day management and operation,
of such Subsidiary. Investments in Unconsolidated Affiliates of the Borrower or Affiliates and Subsidiaries with respect to which
Borrower does not hold such ownership or control shall be strictly prohibited at all times during the term of this Agreement.

 

§8.4
      Merger, Consolidation; Acquisitions. No Credit Party or any Subsidiary (other than
an inactive or immaterial Subsidiary) will become a party to any dissolution, liquidation, disposition of all or
substantially all of its assets or business, merger, reorganization, consolidation or other business combination or agree to
effect any asset acquisition, stock acquisition or other acquisition, in each case without the prior written consent of the
Agent except for (i) the merger or consolidation of one or more of the Subsidiaries of Borrower (other than any Subsidiary
that is a Subsidiary Guarantor) with and into Borrower (it being understood and agreed that in any such event Borrower will
be the surviving Person) and (ii) the merger or consolidation of two or more Subsidiaries of Borrower; provided that
no such merger or consolidation shall involve any Subsidiary that is a Subsidiary Guarantor.

 

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§8.5
      Sale and Leaseback. The Credit Parties will not enter into any arrangement, directly or indirectly, whereby any Credit Party shall
sell or transfer any Real Estate owned by it in order that then or thereafter such Credit Party shall lease back such Real Estate
without the prior written consent of Agent.

 

§8.6
      Compliance with Environmental Laws. None of the Credit Parties will do any of the following: (a) use any of the Real Estate or
any portion thereof as a facility for the handling, processing, storage or disposal of Hazardous Substances, except for quantities
of Hazardous Substances used in the ordinary course of such Credit Party’s business and in material compliance with all
applicable Environmental Laws, (b) cause or permit to be located on any of the Real Estate any underground tank or other underground
storage receptacle for Hazardous Substances except in material compliance with Environmental Laws, (c) generate any Hazardous
Substances on any of the Real Estate except in material compliance with Environmental Laws, (d) conduct any activity at any Real
Estate or use any Real Estate in any manner that could reasonably be expected to cause a Release of Hazardous Substances on, upon
or into the Real Estate or any surrounding properties or any threatened Release of Hazardous Substances which might give rise
to liability under CERCLA or any other Environmental Law, or (e) directly or indirectly transport or arrange for the transport
of any Hazardous Substances (except in material compliance with all Environmental Laws), except, any such use, generation, conduct
or other activity described in clauses (a) to (e) of this §8.6 could not reasonably be expected to have a Material Adverse
Effect.

 

The
Credit Parties shall:

 

(i)     
  in the event of any change in applicable Environmental Laws governing the assessment, release or removal of
Hazardous Substances, take all reasonable action as required by such Laws (including, without limitation, the conducting of
engineering tests at their sole expense) to confirm that no Hazardous Substances are or ever were Released or disposed of on
the Real Estate in violation of applicable Environmental Laws; and

 

(ii)       if
any Release or disposal of Hazardous Substances which the Credit Parties or their Subsidiaries may be legally obligated to contain,
correct or otherwise remediate or which may otherwise expose such Credit Parties or their Subsidiaries to liability shall occur
or shall have occurred on any Real Estate (including without limitation any such Release or disposal occurring prior to the acquisition
or leasing of such Real Estate by the Credit Parties), the relevant Credit Party shall, after obtaining knowledge thereof, cause
the prompt containment and removal of such Hazardous Substances and remediation of the Real Estate in material compliance with
all applicable Environmental Laws; provided, that each of the Credit Parties and their Subsidiaries shall be deemed to
be in compliance with Environmental Laws for the purpose of this clause (ii) so long as it or a responsible third party with sufficient
financial resources is taking reasonable action to remediate or manage such event in accordance with applicable law to the reasonable
satisfaction of the Agent or has taken and is diligently pursuing a challenge to any such alleged legal obligation through appropriate
administrative or judicial proceedings. The Agent may, at its own cost and expense, engage its own Environmental Engineer to review
the environmental assessments and the compliance with the covenants contained herein with respect to the Mortgaged Properties.

 

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At
any time after an Event of Default shall have occurred hereunder and during the continuance thereof, the Agent may at its election
(and will at the request of the Required Lenders) obtain such environmental assessments of any or all of the Mortgaged Properties
prepared by an Environmental Engineer as may be necessary or advisable for the purpose of evaluating or confirming (i) whether
any Hazardous Substances are present in the soil or water at or adjacent to any such Mortgaged Property in a quantity or condition
that is required to be contained, corrected or otherwise remediated by the owner or operator of the Mortgaged Property pursuant
to applicable Environmental Laws and (ii) whether the use and operation of any such Mortgaged Property complies with all Environmental
Laws to the extent required by the Loan Documents. Additionally, at any time that the Agent or the Required Lenders shall have
reasonable and objective grounds to believe that a Release or threatened Release of Hazardous Substances may have occurred at
or from any Mortgaged Property which the owner or operator of such property would be obligated to contain, correct or otherwise
remediate pursuant to applicable Environmental Laws or which otherwise may expose such Person to liability under Environmental
Laws, or that any of the Mortgaged Property is not in compliance with Environmental Laws to the extent required by the Loan Documents,
Borrower shall promptly upon the request of Agent obtain and deliver to Agent such environmental assessments of such Mortgaged
Property prepared by an Environmental Engineer as may be reasonably necessary or advisable for the purpose of evaluating or confirming
(i) whether any Hazardous Substances are present in the soil or water at or adjacent to such Mortgaged Property and (ii) whether
the use and operation of such Mortgaged Property complies with all Environmental Laws to the extent required by the Loan Documents.
Environmental assessments may include detailed visual inspections of such Mortgaged Property including, without limitation, any
and all storage areas, storage tanks, drains, dry wells and leaching areas, and the taking of soil samples, as well as such other
investigations or analyses as are reasonably necessary or appropriate for a complete determination of the compliance of such Mortgaged
Property and the use and operation thereof with all applicable Environmental Laws. All environmental assessments contemplated
by this §8.6 shall be at the sole cost and expense of the Borrower.

 

§8.7
      Distributions. Except as provided below, the REIT shall not, and shall not permit any of its Subsidiaries to, declare or make
any Restricted Payment; provided, however, that so long as no Default or Event of Default would result therefrom the REIT may
make distributions not to exceed the current distribution rate of seven percent (7%) per annum in effect as of the Closing Date,
and the Borrower may make distributions to its third party Equity Interest owners. Further, so long as the Loan and the Note remain
outstanding, the REIT shall not change its distribution strategy or repurchase or redeem equity without the prior written approval
of Agent (other than redemptions upon death or disability consistent with past practices). Upon a Default or Event of Default
which remains in existence, the REIT will be restricted from making any Restricted Payments other than those required to maintain
REIT status. If any monetary or bankruptcy related Default shall occur and be continuing, including any Default pursuant to §§12.1(a),
12.1(b), 12.1(f), 12.1(g), 12.1(h), or 12.1(i), or if there is an Event of Default resulting in acceleration of the Maturity Date,
Borrower and Guarantor will not be permitted to make any distributions.

 

§8.8
      Restriction on Prepayment of Indebtedness. The Credit Parties will not (and will not permit their respective Subsidiaries) to
(a) prepay, redeem, defease, purchase or otherwise retire the principal amount, in whole or in part, of any Indebtedness other
than the Obligations and the Hedge Obligations; other than in connection with any required repayment upon a casualty or condemnation,
and (b) modify any document evidencing any Indebtedness (other than the Obligations) to accelerate the maturity date of such Indebtedness.

 

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§8.9
       Zoning and Contract Changes and Compliance. Without, in each instance, having obtained Agent’s prior written consent:

 

(a)           No
Credit Party shall initiate or consent to any zoning reclassification of any of its Mortgaged Property or seek any variance under
any existing zoning ordinance or use or permit the use of any Mortgaged Property in any manner that could result in such use becoming
a non-conforming use under any zoning ordinance or any other applicable land use law, rule or regulation; and

 

(b)      
    No Credit Party shall initiate any change in any laws, requirements of governmental authorities or obligations created by private
contracts and Leases which now or hereafter may materially adversely affect the ownership, occupancy, use or operation of any
Mortgaged Property.

 

§8.10
    Derivatives Contracts. Borrower shall not, and shall not cause or permit any or its Subsidiaries to contract, create, incur, assume
or suffer to exist any Derivatives Contracts except for the Rate Cap and except for Derivative Contracts made in the ordinary
course of business and not prohibited pursuant to §8.1 which are not secured by any portion of the collateral granted to
the Agent under any of the Loan Documents (other than Hedge Obligations). All Derivative Contracts (including, without limitation,
any and all guarantees provided in connection therewith) shall at all times be in compliance, in all material respects, with the
Commodity Exchange Act and all CFTC Regulations.

 

§8.11
   Transactions with Affiliates. Neither the Credit Parties not their Subsidiaries shall permit to exist or enter into any transaction
(including the purchase, sale, lease or exchange of any property or the rendering of any service) with any Affiliate, except transactions
pursuant to the reasonable requirements of the business of such Person and upon fair and reasonable terms which are no less favorable
to such Person than would be obtained in a comparable arm’s length transaction with a Person that is not an Affiliate.

 

§8.12     Asset
Sales. The Credit Parties shall not, and shall not cause or permit their respective Subsidiaries to, sell, transfer or otherwise
dispose of any material asset without the prior written approval of the Agent in its sole discretion and further provided that
(a) the Credit Parties will remain in compliance with the covenants set forth in §9 after giving effect to the subject transaction,
and (b) the Net Proceeds of such Capital Event shall be paid to the Agent as and to the extent required under §3.2.

 

§9.           FINANCIAL
COVENANTS.As long as the Loan or Note is outstanding, the REIT and its Subsidiaries which are required to be consolidated for
financial reporting under GAAP shall be in compliance with each of the following:

 

§9.1
      Consolidated Leverage Ratio. Prior to the Initial Maturity Date, the Consolidated Leverage Ratio shall not exceed seventy percent
(70%). From and after the Initial Maturity Date, the Consolidated Leverage Ratio shall not exceed sixty percent (60%).

 

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§9.2
      Fixed Charge Coverage Ratio. The ratio of Adjusted Consolidated EBITDA, determined for the most recently ended calendar quarter,
to Consolidated Fixed Charges for the most recently ended calendar quarter, shall not be less than 1.25 to 1.0.

 

§9.3
      Consolidated Tangible Net Worth. The Consolidated Tangible Net Worth shall be not less than $90,000,000 plus eighty percent (80%)
of the Net Proceeds (based upon GAAP book value) received by the REIT or the Borrower at any time from Equity Issuance by any
Credit Party or any Subsidiary (whether common, preferred or otherwise) after the date of this Credit Agreement.

 

§9.4
      Net Equity. For each calendar quarter commencing with the calendar quarter ending December 31, 2017, the REIT shall raise a minimum
of $10,000,000 of Net Equity.

 

§10.       CLOSING
CONDITIONS.

 

The
obligation of the Lenders to make the Loans shall be subject to the satisfaction of the following conditions precedent:

 

§10.1
    Loan Documents. Each of the Loan Documents shall have been duly executed and delivered by the respective parties thereto and shall
be in full force and effect. The Agent shall have received a fully executed counterpart of each such document.

 

§10.2
    Certified Copies of Organizational Documents. The Agent shall have received from each Credit Party a copy, certified as of a recent
date by the appropriate officer of each State in which such Person is organized and in which the Mortgaged Properties are located
and a duly authorized officer, partner or member of such Person, as applicable, to be true and complete, of the partnership agreement,
corporate charter or operating agreement and/or other organizational agreements of such Borrower, as applicable, and its qualification
to do business, as applicable, as in effect on such date of certification.

 

§10.3
    Resolutions. All action on the part of each Credit Party, as applicable, necessary for the valid execution, delivery and performance
by such Person of this Agreement and the other Loan Documents to which such Person is or is to become a party shall have been
duly and effectively taken, and evidence thereof reasonably satisfactory to the Agent shall have been provided to the Agent.

 

§10.4
   Incumbency Certificate; Authorized Signers. The Agent shall have received from each Credit Party an incumbency certificate, dated
as of the Closing Date, signed by a duly authorized officer of such Person and giving the name and bearing a specimen signature
of each individual who shall be authorized to sign, in the name and on behalf of such Person, each of the Loan Documents to which
such Person is or is to become a party. The Agent shall have also received from each Credit Party a certificate, dated as of the
Closing Date, signed by a duly authorized representative of such Credit Party and giving the name and specimen signature of each
Authorized Officer who shall be authorized to make Conversion/Continuation Requests and to give notices and to take other action
on behalf of such Credit Party under the Loan Documents.

 

§10.5
    Opinion of Counsel. The Agent shall have received an opinion addressed to the Lenders and the Agent and dated as of the Closing
Date from counsel to the Credit Parties in form and substance reasonably satisfactory to the Agent.

 

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§10.6
     Insurance. The Agent shall have received certificates evidencing that the Agent and the Lenders are named as mortgagee and additional
insured, as applicable, on all policies of insurance as required by this Agreement or the other Loan Documents.

 

§10.7    
Performance; No Default. The Credit Parties shall have performed and complied with all terms and conditions herein required to
be performed or complied with by it on or prior to the Closing Date, and on the Closing Date there shall exist no Default or Event
of Default hereunder and the Credit Parties shall be in compliance with and there shall be no default with respect to any other
Indebtedness of the Credit Parties.

 

§10.8    
Representations and Warranties. The representations and warranties made by the Credit Parties in the Loan Documents or otherwise
made by or on behalf of the Credit Parties and their respective Subsidiaries in connection therewith or after the date thereof
shall have been true and correct in all material respects when made and shall also be true and correct in all material respects
on the Closing Date.

 

§10.9    
Proceedings and Documents. All proceedings in connection with the transactions contemplated by this Agreement and the other Loan
Documents shall be reasonably satisfactory to the Agent and the Agent’s Special Counsel in form and substance, and the Agent
shall have received all information and such counterpart originals or certified copies of such documents and such other certificates,
opinions, assurances, consents, approvals or documents as the Agent and the Agent’s Special Counsel may reasonably require.

 

§10.10 
Eligible Real Estate Qualification Documents. The Eligible Real Estate Qualification Documents for each Mortgaged Property included
in the Collateral as of the Closing Date shall have been delivered to the Agent at the Borrower’s expense and shall be in
form and substance satisfactory to the Agent.

 

§10.11  
Compliance Certificate. The Agent shall have received a Compliance Certificate dated as of the date of the Closing Date demonstrating
pro forma compliance with each of the covenants calculated therein as of the last day of the Borrower’s most recently completed
fiscal quarter for which financial results have been reported with an appropriate adjustment for Net Equity raised subsequent
to the end of such fiscal quarter.

 

§10.12  
Appraisals. The Agent shall have received Appraisals of each of the Hotel Properties and for all Real Estate owned by Borrower
and its Subsidiaries in form and substance satisfactory to the Agent and the Lenders, and the Agent shall have determined an Appraised
Value for such Mortgaged Properties.

 

§10.13  
Consents. The Agent shall have received evidence reasonably satisfactory to the Agent that all necessary shareholder, partner,
member or other consents required in connection with the consummation of the transactions contemplated by this Agreement and the
other Loan Documents have been obtained.

 

§10.14  
Financial Statements. The Agent shall have received the most recent available (i) financial statements for Guarantor, and
(ii) operating financial statements and STR reports for each asset owned by the Borrower and its subsidiaries;

 

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§10.15
  Rate Cap. Borrower shall enter into an interest rate cap in the notional amount of not less than $26,000,000.00 and a strike rate
of not greater that two percent (2%) with a term that expires no earlier than the Maturity Date (the “Rate Cap”),
and the Agent, on behalf of the Lenders, shall have received a first priority assignment of such rate cap in form and substance
reasonably satisfactory to the Agent. Borrower shall execute any and all additional documentation reasonably requested by Agent
in order to collaterally assign to the Agent all of Borrower’s right, title and interest in and to such interest rate cap
as security for the Obligations hereunder.

 

§10.16
  Hotel Agreements. The Agent shall have received executed copies of the Hotel Documents and a so-called “comfort letter,”
in form and substance reasonably satisfactory to Agent, issued by the applicable franchisor in favor of Agent with respect to
the Franchise Agreements (the “Comfort Letter”).

 

§10.17   Master
Lease Subordination Agreements. The Master Lease Subordination Agreements shall have been executed and delivered to Agent.

 

§10.18  Settlement
Statements. The Agent shall have received copies of sources and uses for the Acquisition in form and substance acceptable to Agent.

 

§10.19   Unrestricted
Cash. The Agent shall have received evidence, in form and substance satisfactory to Agent, that the Borrower has a minimum of
$5,000,000.00 in unrestricted cash contained in an account located at (but not pledged to) the Agent (the “Unrestricted
Cash Account”). Notwithstanding any provision of this Agreement or any other Loan Document to the contrary, neither the
Agent nor any Lender shall have a security interest in the Unrestricted Cash Account (other than statutory rights of setoff
or banker’s liens in favor of the Agent for normal and customary fees charged by the Agent in respect of the
maintenance and servicing of such account).

 

§10.20   Acquisition.
The Agent shall have received evidence that all conditions precedent to the Acquisition, other than funding of the purchase price,
shall have been (or, concurrently with the funding of the purchase price will be) satisfied.

 

§10.21   Material
Change. No material adverse change shall have occurred in the financial condition, business, affairs, operations or control of
Borrower or any Guarantor, since the date of their respective financial statements most recently delivered to the Agent. No action,
suit, investigation or proceeding, pending or threatened, in any court or before any arbitrator or governmental authority which
would have, in the Agent’s reasonable judgment, a material adverse effect on the Borrower, Guarantor or any of their respective
Subsidiaries or any transaction contemplated thereby or on the ability of the Credit Parties to perform their obligations hereunder
or under the other Loan Documents.

 

§10.22   Reserves.
The Borrower shall have deposited $5,898,000.00 in the PIP Reserve and shall have funded the other reserves described in §7.18,
to the extent required by Agent.

 

§10.23   Accounts.
The Credit Parties shall have opened the Accounts described in §7.18 and shall have transferred all available cash and distributions
into such Accounts within ten (10) Business Days of the date hereof, including a minimum of $2,000,000 to the Distribution account
and $205,100 into the Non-collateral T&I reserve account.

 

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§10.24   Fees.
All fees payable pursuant to §4.2 shall have been paid to the Agent.

 

§10.25
  Other. The Agent shall have reviewed such other documents, instruments, certificates, opinions, assurances, consents and approvals
as the Agent or the Agent’s Special Counsel may reasonably have requested.

 

§11.         INTENTIONALLY
DELETED.

 

§12.         EVENTS
OF DEFAULT; ACCELERATION; ETC.

 

§12.1
    Events of Default and Acceleration. If any of the following events (“Events of Default” or, if the giving of notice
or the lapse of time or both is required, then, prior to such notice or lapse of time, “Defaults”) shall occur:

 

(a)       the
Borrower shall fail to pay any principal of the Loans when the same shall become due and payable, whether at the stated date of
maturity or any accelerated date of maturity or at any other date fixed for payment;

 

(b)       the
Borrower shall fail to pay any interest on the Loans within five (5) Business Days of the date that the same shall become due
and payable, or any fees or other sums due hereunder (other than any voluntary prepayment) or under any of the other Loan Documents
within five (5) days after notice from Agent, whether at the stated date of maturity or any accelerated date of maturity or at
any other date fixed for payment;

 

(c)       any
of the Credit Parties or any of their respective Subsidiaries shall fail to perform or shall violate any other term, covenant
or agreement contained in §8.1, §8.2, 8.3, §8.4, §8.5, §8.7, §8.8, §8.10, §8.12 or §9
(other than those specified in the other subclauses of this §12, if any);

 

(d)       any
of the Credit Parties shall fail to perform any other term, covenant or agreement contained herein or in any of the other Loan
Documents which they are required to perform (other than those specified in the other subclauses of this §12 or in the other
Loan Documents), and such failure shall continue for thirty (30) days after Borrower receives from Agent written notice thereof;

 

(e)       any
material representation or warranty made by or on behalf of the Credit Parties or any of their respective Subsidiaries in this
Agreement or any other Loan Document, or any report, certificate, financial statement, request for a Loan, or in any other document
or instrument delivered pursuant to or in connection with this Agreement or any of the other Loan Documents shall prove to have
been false in any material respect upon the date when made or deemed to have been made or repeated;

 

(f)       any
of the Credit Parties or their Subsidiaries (or any Affiliate of the Advisor, the Credit Parties or their Subsidiaries that derives
income from the REIT) shall fail to pay when due (including, without limitation, at maturity), or within any applicable period
of notice and grace, any principal, interest or other amount on account of any obligation for borrowed money or credit received
or other Indebtedness, or shall fail to observe or perform any term, covenant or agreement contained in any agreement by which
it is bound, evidencing or securing any obligation for borrowed money or credit received or other Indebtedness; provided
that the events described in this §12.1(f) shall not constitute an Event of Default unless such failure to perform, together
with other failures to perform as described in §12.1(f), involve singly or in the aggregate obligations for borrowed money
or credit received or other Indebtedness totaling in excess of $1,000,000;

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(g)       any
of the Credit Parties or their Subsidiaries (i) shall make an assignment for the benefit of creditors, or admit in writing, in
a legal proceeding, its general inability to pay or shall generally fail to pay its debts as they mature or become due, or shall
petition or apply for the appointment of a trustee or other custodian, liquidator or receiver for it or any substantial part of
its assets, (ii) shall commence any case or other proceeding relating to it under any bankruptcy, reorganization, arrangement,
insolvency, readjustment of debt, dissolution or liquidation or similar law of any jurisdiction, now or hereafter in effect, or
(iii) shall take any action to authorize or in furtherance of any of the foregoing;

 

(h)       a
petition or application shall be filed for the appointment of a trustee or other custodian, liquidator or receiver of any of the
Credit Parties or their Subsidiaries or any substantial part of the assets of any thereof, or a case or other proceeding shall
be commenced against any such Person under any bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, dissolution
or liquidation or similar law of any jurisdiction, now or hereafter in effect, and any such Person shall indicate its approval
thereof, consent thereto or acquiescence therein or such petition, application, case or proceeding shall not have been dismissed
within ninety (90) days following the filing or commencement thereof;

 

(i)       a
decree or order is entered appointing a trustee, custodian, liquidator or receiver for any of the Credit Parties or their respective
Subsidiaries or adjudicating any such Person bankrupt or insolvent, or approving a petition in any such case or other proceeding,
or a decree or order for relief is entered in respect of any such Person in an involuntary case under federal bankruptcy laws
as now or hereafter constituted;

 

(j)       there
shall remain in force, undischarged, unsatisfied and unstayed, for more than thirty (30) days one or more uninsured or unbonded
final judgments against any Credit Party or their respective Subsidiaries that, either individually or in the aggregate, exceeds
$10,000,000;

 

(k)       any
of the Loan Documents shall be canceled, terminated, revoked or rescinded otherwise than in accordance with the terms thereof
or hereof or the express prior written agreement, consent or approval of the Required Lenders, or any action at law, suit in equity,
or other legal proceeding to cancel, revoke, rescind or challenge the validity or enforceability any of the Loan Documents shall
be commenced by or on behalf of any of the Credit Parties, or any court or any other governmental or regulatory authority or agency
of competent jurisdiction shall make a determination, or issue a judgment, order, decree or ruling, to the effect that any one
or more of the Loan Documents is illegal, invalid or unenforceable in accordance with the terms thereof;

 

(l)       RESERVED;

 

(m)       any
Lien purported to be created under any Security Document shall fail or cease to be, or shall be asserted by any Credit Party not
to be, a valid and perfected Lien on any material portion of the Collateral, with the priority required by the applicable Security
Documents;

 

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(n)       with
respect to any Guaranteed Pension Plan, an ERISA Reportable Event shall have occurred and such event reasonably would be expected
to result in liability of any of the Borrower or any Subsidiary Guarantor to pay money to the PBGC or such Guaranteed Pension
Plan in an aggregate amount exceeding $2,000,000.00 and one of the following shall apply with respect to such event: (x) such
event in the circumstances occurring reasonably would be expected to result in the termination of such Guaranteed Pension Plan
by the PBGC or for the appointment by the appropriate United States District Court of a trustee to administer such Guaranteed
Pension Plan; or (y) a trustee shall have been appointed by the United States District Court to administer such Plan; or (z) the
PBGC shall have instituted proceedings to terminate such Guaranteed Pension Plan;

 

(o)       failure
to remediate within the time period permitted by law or governmental order (or within a reasonable time given the nature of the
problem if no specific time period has been given) material environmental problems related to any Mortgaged Property;

 

(p)       any
Change of Control shall occur;

 

(q)       an
Event of Default under any of the other Loan Documents shall occur;

 

(r)       any
Management Agreement shall be amended or modified (in any material respect) or terminated, or any Mortgaged Property shall change
its “flag,” in any case without the consent of Agent;

 

(s)       a
material default by Master Tenant has occurred and continues beyond any applicable cure period under the Franchise Agreement (or
any replacement Franchise Agreement approved by the Agent hereunder), as a result of which default the Franchisor thereunder gives
notice of termination or cancellation of the Franchise Agreement (or any replacement Franchise Agreement), or any expiration or
other termination of the Franchise Agreement (or any replacement Franchise Agreement) unless prior to or concurrently with any
such expiration or termination Borrower has entered into a replacement Franchise Agreement approved by the Agent in its sole discretion;

 

(t)       an
event of default or termination event (each as defined under the applicable Derivatives Contract) with respect to Borrower shall
occur and be continuing under any Hedge Obligations;

 

(u)       Brett
C. Moody no longer serves as Chairman of the Board, Chief Executive Officer and President of the REIT; or

 

(v)       Advisor
no longer serves as advisor of the Borrower and/or advisor of the REIT.

 

then,
and upon any such Event of Default and during the continuation thereof, the Agent may, and upon the request of the Required Lenders
shall, by notice in writing to the Borrower declare all amounts owing with respect to this Agreement, the Notes and the other
Loan Documents to be, and they shall thereupon forthwith become, immediately due and payable without presentment, demand, protest
or other notice of any kind, all of which are hereby expressly waived by the Credit Parties provided that in the event
of any Event of Default specified in §12.1(g), §12.1(h) or §12.1(i), all such amounts shall become immediately
due and payable automatically and without any requirement of presentment, demand, protest or other notice of any kind from any
of the Lenders or the Agent. 

 

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§12.2
   Remedies. In case any one or more Events of Default shall have occurred and be continuing, and whether or
not the Lenders shall have accelerated the maturity of the Loans pursuant to §12.1, the Agent on behalf of the Lenders
may, and upon the direction of the Required Lenders shall, proceed to protect and enforce their rights and remedies under
this Agreement, the Notes and/or any of the other Loan Documents by suit in equity, action at law or other appropriate
proceeding, including to the full extent permitted by Applicable Law the specific performance of any covenant or agreement
contained in this Agreement and the other Loan Documents, the obtaining of the ex parte appointment of a receiver, and, if
any amount shall have become due, by declaration or otherwise, the enforcement of the payment thereof. No remedy herein
conferred upon the Agent or the holder of any Note is intended to be exclusive of any other remedy and each and every remedy
shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in
equity or by statute or any other provision of law. Notwithstanding the provisions of this Agreement providing that the Loans
may be evidenced by multiple Notes in favor of the Lenders, the Lenders acknowledge and agree that only the Agent may
exercise any remedies arising by reason of a Default or Event of Default. If any Credit Parties fail to perform any agreement
or covenant contained in this Agreement or any of the other Loan Documents beyond any applicable period for notice and cure,
Agent may itself perform, or cause to be performed, any agreement or covenant of such Person contained in this Agreement or
any of the other Loan Documents which such Person shall fail to perform, and the out-of-pocket costs of such performance,
together with any reasonable expenses, including attorneys’ fees incurred by Agent in connection therewith, shall be
payable by Borrower upon demand and shall constitute a part of the Obligations and shall if not paid within five (5) Business
Days after demand bear interest at the rate for overdue amounts as set forth in this Agreement. In the event that all or any
portion of the Obligations is collected by or through an attorney-at-law, the Borrower shall pay all costs of collection
including, but not limited to, reasonable attorney’s fees.

 

§12.3
     Distribution of Collateral Proceeds. In the event that, following the occurrence and during the continuance of any Event of Default,
any monies are received in connection with the enforcement of any of the Loan Documents, or otherwise with respect to the realization
upon any of the Collateral or other assets of the Credit Parties, such monies shall be distributed for application as follows:

 

(a)       First,
to the payment of, or (as the case may be) the reimbursement of the Agent for or in respect of, all reasonable out-of-pocket costs,
expenses, disbursements and losses which shall have been paid, incurred or sustained by the Agent in accordance with the terms
of the Loan Documents to protect or preserve the Collateral or in connection with the collection of such monies by the Agent,
for the exercise, protection or enforcement by the Agent of all or any of the rights, remedies, powers and privileges of the Agent
or the Lenders under this Agreement or any of the other Loan Documents or in respect of the Collateral or in support of any provision
of adequate indemnity to the Agent against any taxes or liens which by law shall have, or may have, priority over the rights of
the Agent or the Lenders to such monies;

 

(b)       Second,
to all other Obligations (including any interest, expenses or other obligations incurred after the commencement of a bankruptcy
but excluding Hedge Obligations) in such order or preference as the Required Lenders shall determine; provided, that (i)
distributions in respect of such other Obligations shall include, on a pari passu basis, any Agent’s fee payable pursuant
to §4.2; and (ii) Obligations owing to the Lenders with respect to each type of Obligation such as interest, principal, fees
and expenses shall be made among the Lenders, pro rata;

 

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(c)       Third,
to any Hedge Obligations owed to the Agent or the Lenders, pro rata; and

 

(d)       Fourth,
the excess, if any, shall be returned to the Borrower or to such other Persons as are entitled thereto.

 

§13.        SETOFF.

 

Regardless
of the adequacy of any Collateral, during the continuance of any Event of Default, any deposits (general or specific, time or
demand, provisional or final, regardless of currency, maturity, or the branch where such deposits are held) or other sums credited
by or due from any Lender or any Affiliate thereof to the Credit Parties and any securities or other property of the Credit Parties
in the possession of such Lender or any Affiliate may, without notice to any Credit Party (any such notice being expressly waived
by the Credit Parties) but with the prior written approval of Agent, be applied to or set off against the payment of Obligations
and any and all other liabilities, direct, or indirect, absolute or contingent, due or to become due, now existing or hereafter
arising, of the Credit Parties to such Lender. Each of the Lenders agrees with each other Lender that if such Lender shall receive
from a Credit Party, whether by voluntary payment, exercise of the right of setoff, or otherwise, and shall retain and apply to
the payment of the Note or Notes held by such Lender any amount in excess of its ratable portion of the payments received by all
of the Lenders with respect to the Notes held by all of the Lenders, such Lender will make such disposition and arrangements with
the other Lenders with respect to such excess, either by way of distribution, pro tanto assignment of claims, subrogation
or otherwise as shall result in each Lender receiving in respect of the Notes held by it its proportionate payment as contemplated
by this Agreement; provided that if all or any part of such excess payment is thereafter recovered from such Lender, such
disposition and arrangements shall be rescinded and the amount restored to the extent of such recovery, but without interest.

 

§14. THE
AGENT.

 

§14.1
     Authorization. The Agent is authorized to take such action on behalf of each of the Lenders and to exercise all such powers as
are hereunder and under any of the other Loan Documents and any related documents delegated to the Agent and all other powers
not specifically reserved to the Lenders, together with such powers as are reasonably incident thereto, provided that no duties
or responsibilities not expressly assumed herein or therein shall be implied to have been assumed by the Agent. The obligations
of the Agent hereunder are primarily administrative in nature, and nothing contained in this Agreement or any of the other Loan
Documents shall be construed to constitute the Agent as a trustee for any Lender or to create an agency or fiduciary relationship.
Agent shall act as the contractual representative of the Lenders hereunder, and notwithstanding the use of the term “Agent”,
it is understood and agreed that Agent shall not have any fiduciary duties or responsibilities to any Lender by reason of this
Agreement or any other Loan Document and is acting as an independent contractor, the duties and responsibilities of which are
limited to those expressly set forth in this Agreement and the other Loan Documents. The Borrower and any other Person shall be
entitled to conclusively rely on a statement from the Agent that it has the authority to act for and bind the Lenders pursuant
to this Agreement and the other Loan Documents.

 

 

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§14.2
     Employees and Agents. The Agent may exercise its powers and execute its duties by or through employees or agents and shall be
entitled to take, and to rely on, advice of counsel concerning all matters pertaining to its rights and duties under this Agreement
and the other Loan Documents. The Agent may utilize the services of such Persons as the Agent may reasonably determine, and all
reasonable fees and expenses of any such Persons shall be paid by the Borrower.

 

§14.3
     No Liability. Neither the Agent nor any of its shareholders, directors, officers or employees nor any other Person assisting them
in their duties nor any agent, or employee thereof, shall be liable for (a) any waiver, consent or approval given or any action
taken, or omitted to be taken, in good faith by it or them hereunder or under any of the other Loan Documents, or in connection
herewith or therewith, or be responsible for the consequences of any oversight or error of judgment whatsoever, except that the
Agent or such other Person, as the case may be, shall be liable for losses due to its willful misconduct or gross negligence as
finally determined by a court of competent jurisdiction after the expiration of all applicable appeal periods or (b) any action
taken or not taken by Agent with the consent or at the request of the Required Lenders. The Agent shall not be deemed to have
knowledge or notice of the occurrence of any Default or Event of Default, except with respect to defaults in the payment of principal,
interest and fees required to be paid to the Agent for the account of the Lenders, unless the Agent has received notice from a
Lender or the Borrower referring to the Loan Documents and describing with reasonable specificity such Default or Event of Default
and stating that such notice is a “notice of default.”

 

§14.4
     No Representations. The Agent shall not be responsible for the execution or validity or enforceability of this Agreement, the
Notes, any of the other Loan Documents or any instrument at any time constituting, or intended to constitute, collateral security
for the Notes, or for the value of any such collateral security or for the validity, enforceability or collectability of any such
amounts owing with respect to the Notes, or for any recitals or statements, warranties or representations made herein, or any
agreement, instrument or certificate delivered in connection therewith or in any of the other Loan Documents or in any certificate
or instrument hereafter furnished to it by or on behalf of the Credit Parties or any of their respective Subsidiaries, or be bound
to ascertain or inquire as to the performance or observance of any of the terms, conditions, covenants or agreements herein or
in any of the other Loan Documents. The Agent shall not be bound to ascertain whether any notice, consent, waiver or request delivered
to it by the Borrower or any holder of any of the Notes shall have been duly authorized or is true, accurate and complete. The
Agent has not made nor does it now make any representations or warranties, express or implied, nor does it assume any liability
to the Lenders, with respect to the creditworthiness or financial condition of the Credit Parties or any of their respective Subsidiaries,
or the value of the Collateral or any other assets of the Credit Parties or any of their respective Subsidiaries. Each Lender
acknowledges that it has, independently and without reliance upon the Agent or any other Lender, and based upon such information
and documents as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender
also acknowledges that it will, independently and without reliance upon the Agent or any other Lender, based upon such information
and documents as it deems appropriate at the time, continue to make its own credit analysis and decisions in taking or not taking
action under this Agreement and the other Loan Documents. Agent’s Special Counsel has only represented Agent and KeyBank
in connection with the Loan Documents and the only attorney client relationship or duty of care is between Agent’s Special
Counsel and Agent or KeyBank. Each Lender has been independently represented by separate counsel on all matters regarding the
Loan Documents and the granting and perfecting of liens in the Collateral.

 

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§14.5
     Payments.

 

(a)       A
payment by the Borrower to the Agent hereunder or under any of the other Loan Documents for the account of any Lender shall constitute
a payment to such Lender. The Agent agrees to distribute to each Lender not later than one Business Day after the Agent’s
receipt of good funds, determined in accordance with the Agent’s customary practices, such Lender’s pro rata share
of payments received by the Agent for the account of the Lenders except as otherwise expressly provided herein or in any of the
other Loan Documents. In the event that the Agent fails to distribute such amounts within one Business Day as provided above,
the Agent shall pay interest on such amount at a rate per annum equal to the Overnight Rate from time to time in effect.

 

(b)       If
in the opinion of the Agent the distribution of any amount received by it in such capacity hereunder, under the Notes or under
any of the other Loan Documents might involve it in liability, it may refrain from making such distribution until its right to
make such distribution shall have been adjudicated by a court of competent jurisdiction. If a court of competent jurisdiction
shall adjudge that any amount received and distributed by the Agent is to be repaid, each Person to whom any such distribution
shall have been made shall either repay to the Agent its proportionate share of the amount so adjudged to be repaid or shall pay
over the same in such manner and to such Persons as shall be determined by such court.

 

§14.6
     Holders of Notes. Subject to the terms of §18, the Agent may deem and treat the payee of any Note as the absolute owner or
purchaser thereof for all purposes hereof until it shall have been furnished in writing with a different name by such payee or
by a subsequent holder, assignee or transferee.

 

§14.7
     Indemnity. The Lenders ratably agree hereby to indemnify and hold harmless the Agent from and against any and all claims, actions
and suits (whether groundless or otherwise), losses, damages, costs, expenses (including any expenses for which the Agent has
not been reimbursed by the Credit Parties as required by §15), and liabilities of every nature and character arising out
of or related to this Agreement, the Notes, or any of the other Loan Documents or the transactions contemplated or evidenced hereby
or thereby, or the Agent’s actions taken hereunder or thereunder, except to the extent that any of the same shall be directly
caused by the Agent’s willful misconduct or gross negligence as finally determined by a court of competent jurisdiction
after the expiration of all applicable appeal periods. The agreements in this §14.7 shall survive the payment of all amounts
payable under the Loan Documents.

 

§14.8     
Agent as Lender. In its individual capacity, KeyBank shall have the same obligations and the same rights, powers and privileges
in respect to its Commitment and the Loans made by it, and as the holder of any of the Notes as it would have were it not also
the Agent.

 

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§14.9
     Resignation. The Agent may resign at any time by giving thirty (30) calendar days’ prior written notice thereof to the Lenders
and the Borrower. The Required Lenders may remove the Agent from its capacity as Agent in the event of the Agent’s gross
negligence or willful misconduct. Upon any such resignation, or removal, the Required Lenders, subject to the terms of §18.1,
shall have the right to appoint as a successor Agent any Lender or any bank whose senior debt obligations are rated not less than
“A” or its equivalent by Moody’s or not less than “A” or its equivalent by S&P and which has
a net worth of not less than $500,000,000. Unless a Default or Event of Default shall have occurred and be continuing, such successor
Agent shall be reasonably acceptable to the Borrower. If no successor Agent shall have been appointed and shall have accepted
such appointment within thirty (30) days after the retiring Agent’s giving of notice of resignation or the Required Lender’s
removal of the Agent, then the retiring or removed Agent may, on behalf of the Lenders, appoint a successor Agent, which
shall be any Lender or any financial institution whose senior debt obligations are rated not less than “A2” or its
equivalent by Moody’s or not less than “A” or its equivalent by S&P and which has a net worth of not less
than $500,000,000. Upon the acceptance of any appointment as Agent hereunder by a successor Agent, such successor Agent, shall
thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring or removed Agent, and
the retiring or removed Agent shall be discharged from its duties and obligations hereunder as Agent. After any retiring Agent’s
resignation or removal, the provisions of this Agreement and the other Loan Documents shall continue in effect for its benefit
in respect of any actions taken or omitted to be taken by it while it was acting as Agent. Upon any change in the Agent under
this Agreement, the resigning or removed Agent shall execute such assignments of and amendments to the Loan Documents as may be
necessary to substitute the successor Agent for the resigning or removed Agent.

 

§14.10
   Duties in the Case of Enforcement. In case one or more Events of Default have occurred and shall be continuing, and whether or
not acceleration of the Obligations shall have occurred, the Agent may and, if (a) so requested by the Required Lenders and (b)
the Lenders have provided to the Agent such additional indemnities and assurances in accordance with their respective Commitment
Percentages against expenses and liabilities as the Agent may reasonably request, shall proceed to exercise all or any legal and
equitable and other rights or remedies as it may have; provided, however, that unless and until the Agent shall
have received such directions, the Agent may (but shall not be obligated to) take such action, or refrain from taking such action,
with respect to such Default or Event of Default as it shall deem to be in the best interests of the Lenders. Without limiting
the generality of the foregoing, if Agent reasonably determines payment is in the best interest of all the Lenders, Agent may
without the approval of the Lenders pay taxes and insurance premiums and spend money for maintenance, repairs or other expenses
which may be necessary to be incurred, and Agent shall promptly thereafter notify the Lenders of such action. Each Lender shall,
within thirty (30) days of request therefor, pay to the Agent its Commitment Percentage of the reasonable costs incurred by the
Agent in taking any such actions hereunder to the extent that such costs shall not be promptly reimbursed to the Agent by the
Borrower or out of the Collateral within such period with respect to the Mortgaged Properties. The Required Lenders may direct
the Agent in writing as to the method and the extent of any such exercise, the Lenders hereby agreeing to indemnify and hold the
Agent harmless in accordance with their respective Commitment Percentages from all liabilities incurred in respect of all actions
taken or omitted in accordance with such directions, except to the extent that any of the same shall be directly caused by the
Agent’s willful misconduct or gross negligence as finally determined by a court of competent jurisdiction after the expiration
of all applicable appeal periods, provided that the Agent need not comply with any such direction to the extent that the
Agent reasonably believes the Agent’s compliance with such direction to be unlawful in any applicable jurisdiction or commercially
unreasonable under the UCC as enacted in any applicable jurisdiction.

 

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§14.11
   Bankruptcy. In the event a bankruptcy or other insolvency proceeding is commenced by or against any Credit Party with respect
to the Obligations, the Agent shall have the sole and exclusive right to file and pursue a joint proof claim on behalf of all
Lenders. Any votes with respect to such claims or otherwise with respect to such proceedings shall be subject to the vote of the
Required Lenders or all of the Lenders as required by this Agreement. Each Lender irrevocably waives its right to file or pursue
a separate proof of claim in any such proceedings unless Agent fails to file such claim within thirty (30) days after receipt
of written notice from the Lenders requesting that Agent file such proof of claim.

 

§14.12
   Request for Agent Action. Agent and the Lenders acknowledge that in the ordinary course of business of the Credit Parties, (a)
Credit Parties will enter into leases or rental agreements covering Mortgaged Properties that may require the execution of a Subordination,
Attornment and Non-Disturbance Agreement in favor of the tenant thereunder, (b) a Mortgaged Property may be subject to a Taking,
(c) a Credit Party may desire to enter into easements or other agreements affecting the Mortgaged Properties, or take other actions
or enter into other agreements in the ordinary course of business which similarly require the consent, approval or agreement of
the Agent. In connection with the foregoing, the Lenders hereby expressly authorize the Agent to (w) execute and deliver to the
Credit Parties Subordination, Attornment and Non-Disturbance Agreements with any tenant under a Lease upon such terms as Agent
in its good faith judgment determines are appropriate (Agent in the exercise of its good faith judgment may agree to allow some
or all of the casualty, condemnation, restoration or other provisions of the applicable Lease to control over the applicable provisions
of the Loan Documents), (x) execute releases of liens in connection with any Taking, (y) execute consents or subordinations in
form and substance satisfactory to Agent in connection with any easements or agreements affecting the Mortgaged Property, or (z)
execute consents, approvals, or other agreements in form and substance satisfactory to the Agent in connection with such other
actions or agreements as may be necessary in the ordinary course of Credit Parties’ business.

 

§14.13
   Reliance by Agent. The Agent shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request,
certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet
website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise authenticated by
an Authorized Officer. The Agent also may rely upon any statement made to it orally or by telephone and believed by it to have
been made by the proper Person, and shall not incur any liability for relying thereon. In determining compliance with any condition
hereunder to the making of a Loan, that by its terms must be fulfilled to the satisfaction of a Lender, the Agent may presume
that such condition is satisfactory to such Lender unless the Agent shall have received notice to the contrary from such Lender
prior to the making of such Loan. The Agent may consult with legal counsel (who may be counsel for the Borrower), independent
accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with
the advice of any such counsel, accountants or experts.

 

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§14.14
   Approvals. If consent is required for some action under this Agreement, or except as otherwise provided herein an approval of
the Lenders or the Required Lenders is required or permitted under this Agreement, each Lender agrees to give the Agent, within
ten (10) days of receipt of the request for action together with all reasonably requested information related thereto (or such
lesser period of time required by the terms of the Loan Documents), notice in writing of approval or disapproval (collectively
“Directions”) in respect of any action requested or proposed in writing pursuant to the terms hereof. To the extent
that any Lender does not approve any recommendation of Agent, such Lender shall in such notice to Agent describe the actions that
would be acceptable to such Lender. If consent is required for the requested action, any Lender’s failure to respond to
a request for Directions within the required time period shall be deemed to constitute a Direction to take such requested action.
In the event that any recommendation is not approved by the requisite number of Lenders and a subsequent approval on the same
subject matter is requested by Agent, then for the purposes of this paragraph each Lender shall be required to respond to a request
for Directions within five (5) Business Days of receipt of such request. Agent and each Lender shall be entitled to assume that
any officer of the other Lenders delivering any notice, consent, certificate or other writing is authorized to give such notice,
consent, certificate or other writing unless Agent and such other Lenders have otherwise been notified in writing.

 

§14.15   
Credit Parties Not Beneficiary. Except for the provisions of §14.9 relating to the appointment of a successor Agent, the
provisions of this §14 are solely for the benefit of the Agent and the Lenders, may not be enforced by any Credit Party,
and except for the provisions of §14.9, may be modified or waived without the approval or consent of the Credit Parties.

 

§14.16   
Defaulting Lenders.

 

(a)       Notwithstanding
anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as that
Lender is no longer a Defaulting Lender, to the extent permitted by Applicable Law:

 

(i)    
   That Defaulting Lender’s right to approve or disapprove any amendment, waiver or consent with respect
to this Agreement shall be restricted as set forth in §27.

 

(ii)       Any
payment of principal, interest, fees or other amounts received by the Agent for the account of that Defaulting Lender (whether
voluntary or mandatory, at maturity, or otherwise, and including any amounts made available to the Agent by that Defaulting Lender
pursuant to §13), shall be applied at such time or times as may be determined by the Agent as follows: first, to the
payment of any amounts owing by that Defaulting Lender to the Agent hereunder; second, as the Borrower may request (so
long as no Default or Event of Default exists), to the funding of any Loan in respect of which that Defaulting Lender has failed
to fund its portion thereof as required by this Agreement, as determined by the Agent; third, if so determined by the Agent
and the Borrower, to be held in a non-interest bearing deposit account and released in order to satisfy obligations of that
Defaulting Lender to fund Loans under this Agreement; fourth, to the payment of any amounts owing to the Lenders as a result
of any judgment of a court of competent jurisdiction obtained by any Lender against that Defaulting Lender as a result of that
Defaulting Lender’s breach of its obligations under this Agreement; fifth, so long as no Default or Event of Default
exists or non-defaulting Lenders have been paid in full all amounts then due, to the payment of any amounts owing to the Borrower
as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against that Defaulting Lender as a
result of that Defaulting Lender’s breach of its obligations under this Agreement; and sixth, to that Defaulting
Lender or as otherwise directed by a court of competent jurisdiction; provided that if (x) such payment is a payment of
the principal amount of any Loans in respect of which that Defaulting Lender has not fully funded its appropriate share and (y)
such Loans were made at a time when the conditions set forth in §10 were satisfied or waived, such payment shall be applied
solely to pay the Loans of all non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of
that Defaulting Lender. Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or
held) to pay amounts owed by a Defaulting Lender or to post cash collateral pursuant to this §14.16(a)(ii) shall be deemed
paid to and redirected by that Defaulting Lender, and each Lender irrevocably consents hereto.

 

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(iii)       Intentionally
Deleted.

 

(iv)       Intentionally
Deleted.

 

(v)        During
any period that a Lender is a Defaulting Lender, the Borrower may, by giving written notice thereof to the Agent, such Defaulting
Lender, and the other Lenders, demand that such Defaulting Lender assign its Commitment to an Eligible Assignee subject to and
in accordance with the provisions of §18.1. No party hereto shall have any obligation whatsoever to initiate any such replacement
or to assist in finding an Eligible Assignee. In addition, any Lender who is not a Defaulting Lender may, but shall not be obligated,
in its sole discretion, to acquire the face amount of all or a portion of such Defaulting Lender’s Commitment via an assignment
subject to and in accordance with the provisions of §18.1. No such assignment shall be effective unless and until, in addition
to the other conditions thereto set forth herein, the parties to the assignment shall make such additional payments to the Agent
in an aggregate amount sufficient with any applicable amounts held pursuant to the immediately preceding subsection (f), upon
distribution thereof as appropriate (which may be outright payment, purchases by the assignee of participations or subparticipations,
or other compensating actions, including funding, with the consent of the Borrower and the Agent, the applicable pro rata share
of Loans previously requested but not funded by the Defaulting Lender, to each of which the applicable assignee and assignor hereby
irrevocably consent), to (x) pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to the Agent
or any Lender hereunder (and interest accrued thereon), and (y) acquire (and fund as appropriate) such Defaulting Lender’s
full pro rata share of all Loans. Notwithstanding the foregoing, in the event that any assignment of rights and obligations of
any Defaulting Lender hereunder shall become effective under any Applicable Law without compliance with the provisions of this
paragraph, then the assignee of such interest shall be deemed to be a Defaulting Lender for all purposes of this Agreement until
such compliance occurs.

 

(b)      Defaulting
Lender Cure. If the Borrower and the Agent agree in writing in their sole discretion that a Defaulting Lender should no longer
be deemed to be a Defaulting Lender, the Agent will so notify the parties hereto, whereupon as of the effective date specified
in such notice and subject to any conditions set forth therein (which may include arrangements with respect to any cash collateral),
that Lender will, to the extent applicable, purchase that portion of outstanding Loans of the other Lenders or take such other
actions as the Agent may determine to be necessary to cause the Loans to be held on a pro rata basis by the Lenders in accordance
with their Commitment Percentages, whereupon that Lender will cease to be a Defaulting Lender; provided that no adjustments will
be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrower while that Lender was a Defaulting
Lender; and provided, further, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder
from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s
having been a Defaulting Lender.

 

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§14.17
    Reliance on Hedge Provider.For purposes of applying payments received in accordance with §12.5, the Agent shall be entitled
to rely upon the trustee, paying agent or other similar representative (each, a “Representative”) or, in the
absence of such a Representative, upon the holder of the Hedge Obligations for a determination (which each holder of the Hedge
Obligations agrees (or shall agree) to provide upon request of the Agent) of the outstanding Hedge Obligations owed to the holder
thereof. Unless it has actual knowledge (including by way of written notice from such holder) to the contrary, the Agent, in acting
hereunder, shall be entitled to assume that no Hedge Obligations are outstanding.

 

		§15.	EXPENSES.

 

The
Credit Parties agrees to pay (a) the reasonable costs incurred by Agent of producing and reproducing this Agreement, the other
Loan Documents and the other agreements and instruments mentioned herein, (b) any recording, mortgage, documentary or intangibles
taxes in connection with the Mortgages and other Loan Documents, (c) all title insurance premiums, engineer’s fees incurred
by Agent, costs incurred by Agent with respect to environmental reviews and the reasonable fees, expenses and disbursements of
the counsel to the Agent and any local counsel to the Agent incurred in connection with the preparation, administration, or interpretation
of the Loan Documents and other instruments mentioned herein, and amendments, modifications, approvals, consents or waivers hereto
or hereunder, (d) all other reasonable out of pocket fees, expenses and disbursements (other than Taxes unless such payment is
otherwise required pursuant to the terms of this Agreement) of the Agent and the Arranger incurred in connection with the preparation,
interpretation or administration of the Loan Documents and other instruments mentioned herein (including any amendments and waivers),
the addition, substitution or release of additional Mortgaged Properties or other Collateral, the review of leases and Subordination,
Attornment and Non-Disturbance Agreements, the making of the Loan, and (e) the third party out-of-pocket costs and expenses incurred
in connection with the syndication of the Commitments pursuant to §18 hereof including travel costs and legal fees of Agent
and Arranger, and (f) without duplication, all out-of-pocket expenses (including reasonable attorneys’ fees and costs, and
the fees and costs of appraisers, engineers, investment bankers or other experts retained by any Lender or the Agent) incurred
by any Lender or the Agent in connection with (i) the expenses of each Lender with respect to the enforcement of or preservation
of rights under any of the Loan Documents against the Credit Parties or the administration thereof after the occurrence of a Default
or Event of Default and (ii) any litigation, proceeding or dispute whether arising hereunder or otherwise, in any way related
to the Agent’s, Arranger or any of the Lenders’ relationship with the Credit Parties (provided that any attorneys’
fees and costs pursuant to this clause (f) shall be limited to those incurred by the Agent and one other counsel with respect
to the Lenders as a group), (g) all reasonable fees, expenses and disbursements of the Agent incurred in connection with UCC searches,
UCC filings, title rundowns, title searches or mortgage recordings, (h) all reasonable out-of-pocket fees, expenses and disbursements
(including reasonable attorneys’ fees, costs and disbursements) which may be incurred by Agent or Arranger in connection
with the execution and delivery of this Agreement and the other Loan Documents (without duplication of any of the items listed
above), and (i) all expenses relating to the use of Intralinks, SyndTrak or any other similar system for the dissemination and
sharing of documents and information in connection with the Loans. The covenants of this §15 shall survive the repayment
of the Loans and the termination of the obligations of the Lenders hereunder.

 

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§16.         INDEMNIFICATION.

 

 The
Credit Parties, jointly and severally, agree to indemnify and hold harmless the Agent, the Arranger, the Lenders and each director,
officer, employee, agent and Affiliate thereof and any Person who controls the Agent or any Lender, and their respective successors
and assigns, against any and all claims, actions and suits, whether groundless or otherwise, and from and against any and all
liabilities, losses, obligations, penalties, judgments, damages, costs and expenses of every nature and character arising out
of or relating to any claim, action, suit or litigation arising out of this Agreement or any of the other Loan Documents or the
transactions contemplated hereby and thereby including, without limitation, (a) any and all claims for brokerage, leasing, finders
or similar fees which may be made relating to the Mortgaged Properties or the Loans by parties claiming by or through Borrower,
(b) any condition of the Mortgaged Properties or any other Real Estate, (c) any actual or proposed use by the Credit Parties of
the proceeds of the Loan, (d) any actual or alleged infringement of any patent, copyright, trademark, service mark or similar
right of the Credit Parties, (e) the Credit Parties entering into or performing this Agreement or any of the other Loan Documents,
(f) any actual or alleged violation of any law, ordinance, code, order, rule, regulation, approval, consent, permit or license
relating to the Mortgaged Properties or any other Real Estate, (g) with respect to the Credit Parties and their respective properties
and assets, subject to any limitations set forth in the Indemnity Agreements, the violation of any Environmental Law, the Release
or threatened Release of any Hazardous Substances or any action, suit, proceeding or investigation brought or threatened with
respect to any Hazardous Substances (including, but not limited to, claims with respect to wrongful death, personal injury, nuisance
or damage to property), and (h) to the extent used by the Credit Parties, any use of Intralinks, SyndTrak or any other system
for the dissemination and sharing of documents and information, in each case including, without limitation, the reasonable fees
and disbursements of counsel incurred in connection with any such investigation, litigation or other proceeding; provided,
however, that the Credit Parties shall not be obligated under this §16 or otherwise to indemnify any Person for liabilities
arising from such Person’s own gross negligence or willful misconduct as determined by a court of competent jurisdiction
after the exhaustion of all applicable appeal periods. In litigation, or the preparation therefor, the Lenders and the Agent shall
be entitled to select a single law firm as their own counsel (in addition to any local counsel deemed necessary by the indemnitees)
and, if there is more than one Lender hereunder, one additional counsel to represent the Lenders as a group. In addition to the
foregoing indemnity, the Credit Parties agree to pay promptly the reasonable fees and expenses of such counsel. If, and to the
extent that the obligations of the Credit Parties under this §16 are unenforceable for any reason, the Credit Parties hereby
agree to make the maximum contribution to the payment in satisfaction of such obligations which is permissible under Applicable
Law. The provisions of this §16 shall survive the repayment of the Loans and the termination of the obligations of the Lenders
hereunder.

 

§17.         SURVIVAL
OF COVENANTS, ETC.

 

 All
covenants, agreements, representations and warranties made herein, in the Notes, in any of the other Loan Documents or in any
documents or other papers delivered by or on behalf of the Credit Parties or any of their respective Subsidiaries pursuant hereto
or thereto shall be deemed to have been relied upon by the Lenders and the Agent, notwithstanding any investigation heretofore
or hereafter made by any of them, and shall survive the making by the Lenders of any of the Loans, as herein contemplated, and
all such covenants and agreements shall continue in full force and effect so long as any amount due under this Agreement or the
Notes or any of the other Loan Documents remains outstanding. The indemnification obligations of the Credit Parties provided herein
and in the other Loan Documents shall survive the full repayment of amounts due and the termination of the obligations of the
Lenders hereunder and thereunder to the extent provided herein and therein.

 

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§18.        ASSIGNMENT
AND PARTICIPATION.

 

§18.1
      Conditions to Assignment by Lenders. Except as provided herein, each Lender may assign to one or more Eligible Assignee all or
a portion of its interests, rights and obligations under this Agreement (including all or a portion of its Commitment Percentage
and Commitment and the same portion of the Loan at the time owing to it and the Notes held by it; provided that (a) the
Agent shall have given its prior written consent to such assignment, which consent shall not be unreasonably withheld or delayed,
(b) the parties to such assignment shall execute and deliver to the Agent, for recording in the Register (as hereinafter defined)
an Assignment and Acceptance Agreement in the form of Exhibit G annexed hereto, together with any Notes subject to such
assignment, (c) in no event shall any assignment be to any Person controlling, controlled by or under common control with, or
which is not otherwise free from influence or control by, any Credit Party, and (d) such assignee shall acquire an interest in
the Loans of not less than $5,000,000 and integral multiples of $1,000,000 in excess thereof (or if less, the remaining Loans
of the assignor), unless waived by the Agent. Upon execution, delivery, acceptance and recording of such Assignment and Acceptance
Agreement, (i) the assignee thereunder shall be a party hereto and all other Loan Documents executed by the Lenders and, to the
extent provided in such Assignment and Acceptance Agreement, have the rights and obligations of a Lender hereunder, (ii) the assigning
Lender shall, upon payment to the Agent of the registration fee referred to in §18.2, be released from its obligations under
this Agreement arising after the effective date of such assignment with respect to the assigned portion of its interests, rights
and obligations under this Agreement, and (iii) the Agent may unilaterally amend Schedule 1.1 to reflect such assignment.
In connection with each assignment, the assignee shall represent and warrant to the Agent, the assignor and each other Lender
as to whether such assignee is controlling, controlled by, under common control with or is not otherwise free from influence or
control by, any Credit Party.

 

§18.2      
Register. The Agent shall maintain on behalf of the Borrower a copy of each assignment delivered to it and a register or similar
list (the “Register”) for the recordation of the names and addresses of the Lenders and the Commitment Percentages
of and principal amount of and interest on the Loans owing to the Lenders from time to time. The entries in the Register shall
be conclusive, in the absence of manifest error, and the Borrower, the Agent and the Lenders shall treat each Person whose name
is recorded in the Register as a Lender hereunder for all purposes, notwithstanding notice to the contrary. The Register shall
be available for inspection by the Borrower and the Lenders at any reasonable time and from time to time upon reasonable prior
notice. Upon each such recordation, the assigning Lender agrees to pay to the Agent a registration fee in the sum of $3,500.

 

§18.3     
New Notes. Upon its receipt of an Assignment and Acceptance Agreement executed by the parties to such assignment, together with
each Note subject to such assignment, the Agent shall record the information contained therein in the Register. Within five (5)
Business Days after receipt of notice of such assignment from Agent, the Borrower, at its own expense, shall execute and deliver
to the Agent, in exchange for each surrendered Note, a new Note (if requested by the subject Lender) to the order of such assignee
in an amount equal to the amount assigned to such assignee pursuant to such Assignment and Acceptance Agreement and, if the assigning
Lender has retained some portion of its obligations hereunder, a new Note to the order of the assigning Lender in an amount equal
to the amount retained by it hereunder. Such new Notes shall provide that they are replacements for the surrendered Notes, shall
be in an aggregate principal amount equal to the aggregate principal amount of the surrendered Notes, shall be dated the effective
date of such Assignment and Acceptance Agreement and shall otherwise be in substantially the form of the assigned Notes. The surrendered
Notes shall be canceled and returned to the Borrower.

 

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§18.4
     Participations. Each Lender may sell participations to one or more Lenders or other entities in all or a portion of such Lender’s
rights and obligations under this Agreement and the other Loan Documents; provided that (a) any such sale or participation
shall not affect the rights and duties of the selling Lender hereunder, (b) such participation shall not entitle such participant
to any rights or privileges under this Agreement or any Loan Documents, including without limitation, rights granted to the Lenders
under §4.8, §4.9 and §4.10, (c) such participation shall not entitle the participant to the right to approve waivers,
amendments or modifications, (d) such participant shall have no direct rights against the Borrower, (e) such sale is effected
in accordance with all Applicable Law, and (f) such participant shall not be a Person controlling, controlled by or under common
control with, or which is not otherwise free from influence or control by any of the Credit Parties; provided, however,
such Lender may agree with the participant that it will not, without the consent of the participant, agree to (i) increase, or
extend the term or extend the time or waive any requirement for the reduction or termination of, such Lender’s Commitment,
(ii) extend the date fixed for the payment of principal of or interest on the Loans or portions thereof owing to such Lender (other
than pursuant to an extension of the Maturity Date pursuant to §2.7), (iii) reduce the amount of any such payment of principal,
or (iv) reduce the rate at which interest is payable thereon. Each Lender that sells a participation shall, acting solely for
this purpose as an agent of the Borrower, maintain at one of its offices a register for the recordation of the names and addresses
of its participants, and the amount and terms of its participations (the “Participant Register”) provided that no
Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any participant
or any information relating to a participant’s interest in any commitments, loans, or its other obligations under any Loan
Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, or other
obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant
Register shall be conclusive, and such Lender and the Agent shall treat each Person whose name is recorded in the Participant
Register pursuant to the terms hereof as the owner of such participation for all purposes of this Agreement, notwithstanding notice
to the contrary.

 

§18.5      
Pledge by Lender. Any Lender may at any time pledge all or any portion of its interest and rights under this Agreement (including
all or any portion of its Note) to any of the twelve Federal Reserve Banks organized under §4 of the Federal Reserve Act,
12 U.S.C. §341 or to such other Person as the Agent may approve to secure obligations of such lenders. No such pledge or
the enforcement thereof shall release the pledgor Lender from its obligations hereunder or under any of the other Loan Documents.

 

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§18.6
      No Assignment by Credit Parties. The Credit Parties shall not assign or transfer any of their rights or obligations under this
Agreement without the prior written consent of each of the Lenders.

 

§18.7      
Disclosure. The Credit Parties agree to promptly cooperate with any Lender in connection with any proposed permitted assignment
or participation of all or any portion of its Commitment. The Credit Parties agree that in addition to disclosures made in accordance
with standard banking practices any Lender may disclose information, obtained by such Lender pursuant to this Agreement to assignees
or participants and potential assignees or participants hereunder, subject to the provisions of this §18.7. Each Lender agrees
for itself that it shall in accordance with its customary procedures hold confidential all non-public information obtained from
Credit Parties that has been identified in writing as confidential by any of them, and shall use reasonable efforts in accordance
with its customary procedures to not disclose such information to any other Person, it being understood and agreed that, notwithstanding
the foregoing, a Lender may make (a) disclosures to its participants (provided such Persons are advised of the provisions of this
§18.7), (b) disclosures to its directors, officers, employees, Affiliates, accountants, appraisers, legal counsel and other
professional advisors of such Lender (provided that such Persons who are not employees of such Lender are advised of the provision
of this §18.7 and sign a confidentiality agreement reasonably acceptable to Borrower), (c) disclosures customarily provided
or reasonably required by any potential or actual bona fide assignee, transferee or participant or their respective directors,
officers, employees, Affiliates, accountants, appraisers, legal counsel and other professional advisors in connection with a potential
or actual assignment or transfer by such Lender of any Loans or any participations therein (provided such Persons are advised
of the provisions of this §18.7), (d) disclosures to bank regulatory authorities or self-regulatory bodies with jurisdiction
over such Lender, or (e) disclosures required or requested by any other governmental authority or representative thereof or pursuant
to legal process; provided that, unless specifically prohibited by Applicable Law or court order, each Lender shall notify Borrower
of any request by any governmental authority or representative thereof prior to disclosure (other than any such request in connection
with any examination of such Lender by such government authority) for disclosure of any such non-public information prior to disclosure
of such information. In addition, each Lender may make disclosure of such information to any contractual counterparty in swap
agreements or such contractual counterparty’s professional advisors (so long as such contractual counterparty or professional
advisors agree to be bound by the provisions of this §18.7). Non-public information shall not include any information which
is or subsequently becomes publicly available other than as a result of a disclosure of such information by a Lender, or prior
to the delivery to such Lender is within the possession of such Lender if such information is not known by such Lender to be subject
to another confidentiality agreement with or other obligations of secrecy to the Borrower, or is disclosed with the prior approval
of Borrower. Nothing herein shall prohibit the disclosure of non-public information to the extent necessary to enforce the Loan
Documents.

 

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§19.         NOTICES.
Each notice, demand, election or request (hereinafter in this §19 referred to as “Notice”) must be in writing
and shall be deemed to have been properly given or served by personal delivery or by sending same by overnight courier or by depositing
same in the United States Mail, postpaid and registered or certified, return receipt requested, and addressed as follows:

 

If
to the Agent or KeyBank:

KeyBank National Association

1200 Abernathy Road NE, Suite 1550

Atlanta, Georgia 30328

Attention: Jennifer L. Power, Vice President

 

and

Riemer & Braunstein LLP

Three Center Plaza, 6th Floor

Boston, Massachusetts 02108

Attn: Kevin J. Lyons, Esquire

 

If
to the Borrower:

MOODY NATIONAL OPERATING PARTNERSHIP II, LP

c/o Moody National Companies

6363 Woodway Drive, Suite 110

Houston, Texas 77057

Attention: Brett C. Moody, CEO

Attention: Mary Smith, General Counsel

 

With
a copy to:

Moody National Companies

6363 Woodway Drive, Suite 110

Houston, Texas 77057

Attention: Mary Smith, Esquire

 

Gresham
Savage Nolan & Tilden, PC

550 West C Street, Suite 1810

San Diego, California 92101

Attention: Jerome A. Grossman, Esquire

 

to
any other Lender which is a party hereto, at the address for such Lender set forth on its signature page hereto, and to any Lender
which may hereafter become a party to this Agreement, at such address as may be designated by such Lender. Each Notice shall be
effective upon being personally delivered or upon being sent by overnight courier or upon being deposited in the United States
Mail as aforesaid. The time period in which a response to such Notice must be given or any action taken with respect thereto (if
any), however, shall commence to run from the date of receipt if personally delivered or sent by overnight courier, or if so deposited
in the United States Mail, the earlier of three (3) Business Days following such deposit or the date of receipt as disclosed on
the return receipt. Rejection or other refusal to accept or the inability to deliver because of changed address for which no notice
was given shall be deemed to be receipt of the Notice sent. By giving at least fifteen (15) days prior Notice thereof, Borrower,
a Lender or Agent shall have the right from time to time and at any time during the term of this Agreement to change their respective
addresses and each shall have the right to specify as its address any other address within the United States of America.

 

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§20.        RELATIONSHIP.

 

Neither
the Agent nor any Lender has any fiduciary relationship with or fiduciary duty to the Credit Parties arising out of or in connection
with this Agreement or the other Loan Documents or the transactions contemplated hereunder and thereunder, and the relationship
between each Lender and Agent, and the Credit Parties is solely that of a lender and borrower, and nothing contained herein or
in any of the other Loan Documents shall in any manner be construed as making the parties hereto partners, joint venturers or
any other relationship other than lender and borrower.

 

§21.        GOVERNING
LAW; CONSENT TO JURISDICTION AND SERVICE.

 

THIS
AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, INCLUDING, WITHOUT LIMITATION, NEW YORK GENERAL OBLIGATIONS
LAW SECTION 5-1401. THE BORROWER, THE AGENT AND THE LENDERS AGREE THAT ANY SUIT FOR THE ENFORCEMENT OF THIS AGREEMENT MAY BE BROUGHT
IN ANY COURT OF COMPETENT JURISDICTION IN THE STATE OF NEW YORK (INCLUDING ANY FEDERAL COURT SITTING THEREIN). THE BORROWER, THE
AGENT AND THE LENDERS FURTHER ACCEPT, GENERALLY AND UNCONDITIONALLY, THE NON-EXCLUSIVE JURISDICTION OF SUCH COURTS AND ANY RELATED
APPELLATE COURT AND IRREVOCABLY (i) AGREE TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY WITH RESPECT TO THIS AGREEMENT AND (ii)
WAIVE ANY OBJECTION ANY OF THEM MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT OR THAT
SUCH A COURT IS AN INCONVENIENT FORUM. THE BORROWER, THE AGENT AND THE LENDERS FURTHER AGREE THAT SERVICE OF PROCESS IN ANY SUCH
SUIT MAY BE MADE UPON THE BORROWER BY REGISTERED OR CERTIFIED MAIL AT THE ADDRESS SPECIFIED IN SECTION 19 HEREOF. IN ADDITION
TO THE COURTS OF THE STATE OF NEW YORK OR ANY FEDERAL COURT SITTING THEREIN, THE AGENT OR ANY LENDER MAY BRING ACTION(S) FOR ENFORCEMENT
ON A NONEXCLUSIVE BASIS WHERE ANY COLLATERAL OR ASSETS OF THE BORROWER EXIST AND THE BORROWER CONSENTS TO THE NONEXCLUSIVE JURISDICTION
OF SUCH COURTS AND THE SERVICE OF PROCESS IN ANY SUCH SUIT BEING MADE UPON THE BORROWER BY REGISTERED OR CERTIFIED MAIL AT THE
ADDRESS SPECIFIED IN SECTION 19 HEREOF.

 

§22.        HEADINGS.

 

The
captions in this Agreement are for convenience of reference only and shall not define or limit the provisions hereof.

 

§23.        COUNTERPARTS.

 

This
Agreement and any amendment hereof may be executed in several counterparts and by each party on a separate counterpart, each of
which when so executed and delivered shall be an original, and all of which together shall constitute one instrument. In proving
this Agreement it shall not be necessary to produce or account for more than one such counterpart signed by the party against
whom enforcement is sought.

 

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§24.        ENTIRE
AGREEMENT, ETC.

 

This
Agreement and the Loan Documents are intended by the parties as the final, complete and exclusive statement of the transactions
evidenced by this Agreement and the Loan Documents. All prior or contemporaneous promises, agreements and understandings, whether
oral or written, are deemed to be superseded by this Agreement and the Loan Documents, and no party is relying on any promise,
agreement or understanding not set forth in this Agreement and the Loan Documents. Neither this Agreement nor any term hereof
may be changed, waived, discharged or terminated, except as provided in §27.

 

§25.        WAIVER
OF JURY TRIAL AND CERTAIN DAMAGE CLAIMS.

 

EACH
OF THE BORROWER, THE AGENT AND THE LENDERS HEREBY WAIVES ITS RIGHT TO A JURY TRIAL WITH RESPECT TO ANY ACTION OR CLAIM ARISING
OUT OF ANY DISPUTE IN CONNECTION WITH THIS AGREEMENT, ANY NOTE OR ANY OF THE OTHER LOAN DOCUMENTS, ANY RIGHTS OR OBLIGATIONS HEREUNDER
OR THEREUNDER OR THE PERFORMANCE OF SUCH RIGHTS AND OBLIGATIONS. BORROWER HEREBY WAIVES ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER
IN ANY SUCH LITIGATION ANY SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES AND TO THE EXTENT PERMITTED BY APPLICABLE LAW, PUNITIVE
OR ANY DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES. BORROWER (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY
OF ANY LENDER OR THE AGENT HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH LENDER OR THE AGENT WOULD NOT, IN THE EVENT OF LITIGATION,
SEEK TO ENFORCE THE FOREGOING WAIVERS AND (B) ACKNOWLEDGES THAT THE AGENT AND THE LENDERS HAVE BEEN INDUCED TO ENTER INTO THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS TO WHICH THEY ARE PARTIES BY, AMONG OTHER THINGS, THE WAIVERS AND CERTIFICATIONS CONTAINED
IN THIS §25. BORROWER ACKNOWLEDGES THAT IT HAS HAD AN OPPORTUNITY TO REVIEW THIS §25 WITH LEGAL COUNSEL AND THAT BORROWER
AGREES TO THE FOREGOING AS ITS FREE, KNOWING AND VOLUNTARY ACT.

 

§26.        DEALINGS
WITH THE CREDIT PARTIES.

 

The
Agent, the Lenders and their affiliates may accept deposits from, extend credit to, invest in, act as trustee under indentures
of, serve as financial advisor of, and generally engage in any kind of banking, trust or other business with the Credit Parties
and their respective Subsidiaries or any of their Affiliates regardless of the capacity of the Agent or the Lender hereunder.
The Lenders acknowledge that, pursuant to such activities, KeyBank or its Affiliates may receive information regarding such Persons
(including information that may be subject to confidentiality obligations in favor of such Person) and acknowledge that the Agent
shall be under no obligation to provide such information to them.

 

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§27.        CONSENTS,
AMENDMENTS, WAIVERS, ETC.

 

Except
as otherwise expressly provided in this Agreement, any consent or approval required or permitted by this Agreement or any other
Loan Document may be given, and any term of this Agreement, any other Loan Document or of any other instrument related hereto
or mentioned herein may be amended, and the performance or observance by the Borrower or any Guarantor of any terms of this Agreement,
any other Loan Document or such other instrument or the continuance of any Default or Event of Default may be waived (either generally
or in a particular instance and either retroactively or prospectively) with, but only with, the written consent of the Required
Lenders. Notwithstanding the foregoing, none of the following may occur without the written consent of each Lender adversely affected
thereby: (a) a reduction in the rate of interest on the Notes (other than a reduction or waiver of default interest); (b) an increase
in the amount of the Commitments of the Lenders (except as provided in §18.1); (c) a forgiveness, reduction or waiver of
the principal of any unpaid Loan or any interest thereon or fee payable under the Loan Documents; (d) a reduction in the amount
of any fee payable to a Lender hereunder; (e) the postponement of any date fixed for any payment of principal of or interest on
the Loan; (f) an extension of the Maturity Date (except as provided in §2.7); (g) a change in the manner of distribution
of any payments to the Lenders or the Agent; (h) the release of Borrower, any Guarantor or any Collateral except as otherwise
permitted hereunder; (i) an amendment of the definition of Required Lenders or of any requirement for consent by all of the Lenders;
(j) any modification to require a Lender to fund a pro rata share of a request for an advance of the Loan made by the Borrower
other than based on its Commitment Percentage; (k) an amendment to this §27; or (l) an amendment of any provision of this
Agreement or the Loan Documents which requires the approval of all of the Lenders or the Required Lenders to require a lesser
number of Lenders to approve such action. The provisions of §14 may not be amended without the written consent of the Agent.
No waiver shall extend to or affect any obligation not expressly waived or impair any right consequent thereon. No course of dealing
or delay or omission on the part of the Agent or any Lender in exercising any right shall operate as a waiver thereof or otherwise
be prejudicial thereto. Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve
or disapprove any amendment, waiver or consent hereunder (and any amendment, waiver or consent which by its terms requires the
consent of all Lenders or each affected Lender may be effected with the consent of the applicable Lenders other than Defaulting
Lenders), except that (x) the Commitment of any Defaulting Lender may not be increased or extended without the consent of such
Lender and (y) any waiver, amendment or modification requiring the consent of all Lenders or each affected Lender that by its
terms affects any Defaulting Lender more adversely than other affected Lenders shall require the consent of such Defaulting Lender.

 

§28.        SEVERABILITY.

 

The
provisions of this Agreement are severable, and if any one clause or provision hereof shall be held invalid or unenforceable in
whole or in part in any jurisdiction, then such invalidity or unenforceability shall affect only such clause or provision, or
part thereof, in such jurisdiction, and shall not in any manner affect such clause or provision in any other jurisdiction, or
any other clause or provision of this Agreement in any jurisdiction.

 

§29.        TIME
OF THE ESSENCE.

 

Time
is of the essence with respect to each and every covenant, agreement and obligation of the Credit Parties under this Agreement
and the other Loan Documents.

 

§30.        NO
UNWRITTEN AGREEMENTS.

 

THE
LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS
OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. ANY ADDITIONAL TERMS
OF THE AGREEMENT BETWEEN THE PARTIES ARE SET FORTH BELOW.

 

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§31.        REPLACEMENT
NOTES.

 

Upon
receipt of evidence reasonably satisfactory to Borrower of the loss, theft, destruction or mutilation of any Note, and in the
case of any such loss, theft or destruction, upon delivery of an indemnity agreement reasonably satisfactory to Borrower or, in
the case of any such mutilation, upon surrender and cancellation of the applicable Note, Borrower will execute and deliver, in
lieu thereof, a replacement Note, identical in form and substance to the applicable Note and dated as of the date of the applicable
Note and upon such execution and delivery all references in the Loan Documents to such Note shall be deemed to refer to such replacement
Note.

 

§32.        NO
THIRD PARTIES BENEFITED.

 

This
Agreement and the other Loan Documents are made and entered into for the sole protection and legal benefit of the Credit Parties
and their Subsidiaries, the Lenders, the Agent, the Lender Hedge Provider, and other Persons party thereto and their respective
permitted successors and assigns, and no other Person shall be a direct or indirect legal beneficiary of, or have any direct or
indirect cause of action or claim in connection with, this Agreement or any of the other Loan Documents. All conditions to the
performance of the obligations of the Agent and the Lenders under this Agreement, including the obligation to make the Loan, are
imposed solely and exclusively for the benefit of the Agent and the Lenders, and their successors and assigns, and no other Person
shall have standing to require satisfaction of such conditions in accordance with their terms or be entitled to assume that the
Agent and the Lenders will refuse to lend in the absence of strict compliance with any or all thereof and no other Person shall,
under any circumstances, be deemed to be a beneficiary of such conditions, any and all of which may be freely waived in whole
or in part by the Agent and the Lenders at any time if in their sole discretion they deem it desirable to do so. In particular,
the Agent and the Lenders make no representations and assume no obligations as to third parties concerning the quality of the
construction by the Credit Parties of any development or the absence therefrom of defects.

 

§33.        PATRIOT
ACT.

 

Each
Lender and the Agent (for itself and not on behalf of any Lender) hereby notifies the Credit Parties that, pursuant to the requirements
of the Patriot Act, it is required to obtain, verify and record information that identifies the Credit Parties, which information
includes names and addresses and other information that will allow such Lender or the Agent, as applicable, to identify the Credit
Parties in accordance with the Patriot Act.

 

§34.        [Intentionally
Omitted.]

 

§35.        [Intentionally
Omitted.]

 

§36.        ADDITIONAL
AGREEMENTS CONCERNING OBLIGATIONS OF CREDIT PARTIES.

 

    92

     

    

   

§36.1
     Attorney-in-Fact. Each Credit Party hereby irrevocably appoints Borrower as their agent and attorney-in-fact for all purposes
of the Loan Documents, including the giving and receiving of notices and other communications.

 

§36.2      
Waiver of Automatic or Supplemental Stay. Each of the Credit Parties covenants to the Lenders and Agent that in the event of the
filing of any voluntary or involuntary petition in bankruptcy by or against any other Credit Party at any time following the execution
and delivery of this Agreement, it shall not seek a supplemental stay or any other relief, whether injunctive or otherwise, pursuant
to Section 105 of the Bankruptcy Code or any other provision of the Bankruptcy Code, to stay, interdict, condition, reduce or
inhibit the ability of the Lenders or Agent to enforce any rights it has by virtue of this Agreement, the Loan Documents, or at
law or in equity, or any other rights the Lenders or Agent has, whether now or hereafter acquired, against such Credit Party or
against any property owned by such Credit Party.

 

§36.3      
Waiver of Defenses. To the extent permitted by applicable law, each of the Credit Parties hereby waives and agrees not to assert
or take advantage of any defense based upon:

 

(a)           Any
right to require Agent or the Lenders to proceed against the other Credit Parties or any other Person or to proceed against or
exhaust any security held by Agent or the Lenders at any time or to pursue any other remedy in Agent’s or any Lender’s
power or under any other agreement before proceeding against a Credit Party hereunder or under any other Loan Document;

 

(b)           The
defense of the statute of limitations in any action hereunder or the payment of performance of any of the Obligations;

 

(c)           Any
defense that may arise by reason of the incapacity, lack of authority, death or disability of any other Person or Persons or the
failure of Agent or any Lender to file or enforce a claim against the estate (in administration, bankruptcy or any other proceeding)
of any other Person or Persons;

 

(d)           Any
failure on the part of Agent or any Lender to ascertain the extent or nature of any Collateral or any insurance or other rights
with respect thereto, or the liability of any party liable under the Loan Documents or the obligations evidenced or secured thereby;

 

(e)           Demand,
presentment for payment, notice of nonpayment, protest, notice of protest and all other notices of any kind (except for such notices
as are specifically required to be provided to the Credit Parties pursuant to the Loan Documents or as are required to be delivered
under any mandatory provision of law), or the lack of any thereof, including, without limiting the generality of the foregoing,
notice of the existence, creation or incurring of any new or additional indebtedness or obligation or of any action or non-action
on the part of any Credit Party, Agent, any Lender, any endorser or creditor of the Credit Parties or on the part of any other
Person whomsoever under this or any other instrument in connection with any obligation or evidence of indebtedness held by Agent
or any Lender;

 

(f)            Any
defense based upon an election of remedies by Agent or any Lender, including any election to proceed by judicial or nonjudicial
foreclosure of any security, whether real property or personal property security, or by deed in lieu thereof, and whether or not
every aspect of any foreclosure sale is commercially reasonable, or any election of remedies, including remedies relating to real
property or personal property security, which destroys or otherwise impairs the subrogation rights of a Credit Party or the rights
of a Credit Party to proceed against the other Credit Parties for reimbursement, or both;

 

    93

     

    

 

(g)           Any
right or claim of right to cause a marshaling of the assets of any Credit Party;

 

(h)           Any
principle or provision of law, statutory or otherwise, which is or might be in conflict with the terms and provisions of this
§36.3;

 

(i)            Any
duty on the part of Agent or any Lender to disclose to the Credit Parties any facts Agent or any Lender may now or hereafter know
about the Credit Parties or the Collateral, regardless of whether Agent or any Lender has reason to believe that any such facts
materially increase the risk beyond that which each Credit Party intends to assume or has reason to believe that such facts are
unknown to any Credit Party or has a reasonable opportunity to communicate such facts to the Credit Parties, it being understood
and agreed that each Credit Party is fully responsible for being and keeping informed of the financial condition of the other
Credit Parties, of the condition of the Mortgaged Property or the Collateral and of any and all circumstances bearing on the risk
that liability may be incurred by the Credit Parties hereunder and under the other Loan Documents;

 

(j)            Any
inaccuracy of any representation made by or on behalf of any Credit Party contained in any Loan Document;

 

(k)           Subject
to compliance with the provisions of this Agreement, any sale or assignment of the Loan Documents, or any interest therein;

 

(l)            Subject
to compliance with the provisions of this Agreement, any sale or assignment by a Credit Party or any other Person of any Collateral,
or any portion thereof or interest therein, not consented to by Agent or any Lender;

 

(m)          Any
invalidity, irregularity or unenforceability, in whole or in part, of any one or more of the Loan Documents;

 

(n)           Any
lack of commercial reasonableness in dealing with the Collateral;

 

(o)           Any
deficiencies in the Collateral or any deficiency in the ability of Agent or any Lender to collect or to obtain performance from
any Persons now or hereafter liable for the payment and performance of any obligation hereby guaranteed;

 

(p)           An
assertion or claim that the automatic stay provided by 11 U.S.C. §362 (arising upon the voluntary or involuntary bankruptcy
proceeding of the other Credit Parties) or any other stay provided under any other Debtor Relief Law (whether statutory, common
law, case law or otherwise) of any jurisdiction whatsoever, now or hereafter in effect, which may be or become applicable, shall
operate or be interpreted to stay, interdict, condition, reduce or inhibit the ability of Agent or any Lender to enforce any of
its rights, whether now or hereafter required, which Agent or any Lender may have against any Credit Party or the Collateral owned
by it;

 

    94

     

    

 

(q)           Any
modifications of the Loan Documents or any obligation of the Credit Parties relating to the Loan by operation of law or by action
of any court, whether pursuant to the Bankruptcy Code, or any other Debtor Relief Law (whether statutory, common law, case law
or otherwise) of any jurisdiction whatsoever, now or hereafter in effect, or otherwise;

 

(r)            Any
release of a Credit Party or of any other Person from performance or observance of any of the agreements, covenants, terms or
conditions contained in any of the Loan Documents by operation of law, Agent’s or the Lenders’ voluntary act or otherwise;

 

(s)           Any
action, occurrence, event or matter consented to by the Credit Parties under any provision hereof, or otherwise;

 

(t)     
      The dissolution or termination of existence of any Credit Party;

 

(u)           Subject
to compliance with the provisions of this Agreement, any renewal, extension, modification, amendment or another changes in the
Obligations, including but not limited to any material alteration of the terms of payment or performance of the Obligations;

 

(v)           Any
defense of any other Credit Party, including without limitation, the invalidity, illegality or unenforceability of any of the
Obligations;

 

(w)           To
the fullest extent permitted by law, any other legal, equitable or surety defenses whatsoever to which such Credit Party might
otherwise be entitled, it being the intention that the obligations of the Credit Parties hereunder and under the other Loan Documents,
to the extent that they constitute guaranty or surety obligations, are absolute, unconditional and irrevocable; or

 

(x)            Subject
to compliance with the provisions of this Agreement and the other Loan Documents, any lack of notice of disposition or manner
of disposition of any Collateral except for notices required by law.

 

§36.4
      Waiver. Each Credit Party waives, to the fullest extent that each may lawfully so do, the benefit of all appraisement, valuation,
stay, extension, homestead, exemption and redemption laws which such Person may claim or seek to take advantage of in order to
prevent or hinder the enforcement of any of the Loan Documents or the exercise by Lenders or Agent of any of their respective
remedies under the Loan Documents and, to the fullest extent that such Credit Party may lawfully so do, such Person waives any
and all right to have the assets comprised in the security intended to be created by the Security Documents (including, without
limitation, those assets owned by the other Credit Parties) marshaled upon any foreclosure of the lien created by such Security
Documents. Each of the Credit Parties further agrees that the Lenders and Agent shall be entitled to exercise their respective
rights and remedies under the Loan Documents or at law or in equity in such order as they may elect. Without limiting the foregoing,
each Credit Party further agrees that upon the occurrence and during the continuation of an Event of Default, the Lenders and
Agent may exercise any of such rights and remedies without notice to any of the Credit Parties except as required by law or the
Loan Documents and agrees that neither the Lenders nor Agent shall be required to proceed against the other Credit Parties or
any other Person or to proceed against or to exhaust any other security held by the Lenders or Agent at any time or to pursue
any other remedy in Lender’s or Agent’s power or under any of the Loan Documents before proceeding against a Credit
Party or its assets under the Loan Documents.

 

§36.5       Subordination. So long as the Loan is outstanding, (x) each Credit Party
hereby expressly waives any right of contribution from or indemnity against any other Credit Party, whether at law or in equity,
arising from any payments made by such Person pursuant to the terms of this Agreement or the Loan Documents, and (y) acknowledges
that it has no right whatsoever to proceed against any other Credit Party for reimbursement of any such payments. In connection
with the foregoing, each Credit Party, except to the extent provided in §37, (i) expressly waives any and all rights of subrogation
to the Lenders or Agent against the other Credit Parties, (ii) any rights to enforce any remedy which the Lenders or Agent may
have against the other Credit Parties and (iii) any rights to participate in any Collateral or any other assets of the other Credit
Parties. In addition to and without in any way limiting the foregoing, each Credit Party hereby subordinates any and all indebtedness
it may now or hereafter owe to any other Credit Party to all indebtedness of the Credit Parties to the Lenders and Agent, and
agrees with the Lenders and Agent that no Credit Party shall claim any offset or other reduction of such Credit Party’s
obligations hereunder because of any such indebtedness and, except for payments expressly permitted to be paid, and paid, in accordance
with the terms of the Loan Documents, shall not take any action to obtain any of the Collateral or any other assets of the other
Credit Parties.

 

    95

     

    

 

§37.        ACKNOWLEDGMENT
OF BENEFITS; EFFECT OF AVOIDANCE PROVISIONS.

 

(a)       Without
limiting any provision of §36, each Subsidiary Guarantor acknowledges that it has received, or will receive, significant
financial and other benefits, either directly or indirectly, from the proceeds of the Loan made by the Lenders to the Borrower
pursuant to this Agreement; that the benefits received by such Subsidiary Guarantor are reasonably equivalent consideration for
such Subsidiary Guarantor’s execution of this Agreement and the other Loan Documents to which it is a party; and that such
benefits include, without limitation, the access to capital afforded to the Borrower pursuant to this Agreement from which the
activities of such Subsidiary Guarantor will be supported, the refinancing of certain existing indebtedness of such Subsidiary
Guarantor secured by such Subsidiary Guarantor’s Collateral Property from the proceeds of the Loan, and the ability to refinance
that indebtedness at a lower interest rate and otherwise on more favorable terms than would be available to it if the Mortgaged
Property owned by such Subsidiary Guarantor were being financed on a stand-alone basis and not as part of a pool of assets comprising
the security for the Obligations. Each Subsidiary Guarantor is executing this Agreement and the other Loan Documents in consideration
of those benefits received by it and each Subsidiary Guarantor desires to enter into an allocation and contribution agreement
with each other Subsidiary Guarantor as set forth in this §37 and agrees to subordinate and subrogate any rights or claims
it may have against other Subsidiary Guarantors as and to the extent set forth in §36.

 

(b)       In
the event any one or more Subsidiary Guarantors (any such Subsidiary Guarantor, a “Funding Guarantor”) is deemed
to have paid an amount in excess of the principal amount attributable to it (such principal amount, the “Allocable Principal
Balance”) (any deemed payment in excess of the applicable Allocable Principal Balance, a “Contribution”)
as a result of (a) such Funding Guarantor’s payment of and/or performance on the Obligations and/or (b) Agent’s and/or
any Lender’s realization on the Collateral owned by such Funding Guarantor (whether by foreclosure, deed in lieu of foreclosure,
private sale or other means), then after payment in full of the Loan and the satisfaction of all of Subsidiary

 

    96

     

    

 

Guarantors’
other obligations under the Loan Documents (other than surviving indemnity obligations as to which no claims is then pending),
such Funding Guarantor shall be entitled to contribution from each benefited Subsidiary Guarantor for the amount of the Contribution
so benefited (any such contribution, a “Reimbursement Contribution”), up to such benefited Subsidiary Guarantor’s
then current Allocable Principal Balance.

  

(c)       Any
Reimbursement Contributions required to be made hereunder shall, subject to §36, be made within ten (10) days after demand
therefor. If a Subsidiary Guarantor (a “Defaulting Guarantor”) shall have failed to make a Reimbursement Contribution
as hereinabove provided, after the later to occur of (a) payment of the Loan in full and the satisfaction of all of all Subsidiary
Guarantors’ other obligations to Lenders (other than surviving indemnity obligations as to which no claims is then pending)
or (b) the date which is 91 days after the payment in full of the Loan, the Funding Guarantor to whom such Reimbursement Contribution
is owed shall be subrogated to the rights of Lenders against such Defaulting Guarantor, including the right to receive a portion
of such Defaulting Guarantor’s Collateral in an amount equal to the Reimbursement Contribution payment required hereunder
that such Defaulting Guarantor failed to make; provided, however, if Agent returns any payments in connection with
a bankruptcy of a Subsidiary Guarantor, all other Subsidiary Guarantors shall jointly and severally pay to Agent and Lenders all
such amounts returned, together with interest at the Default Rate accruing from and after the date on which such amounts were
returned.

 

(d)       In
the event that at any time there exists more than one Funding Guarantor with respect to any Contribution (in any such case, the
“Applicable Contribution”), then Reimbursement Contributions from Defaulting Guarantors pursuant hereto shall
be equitably allocated among such Funding Guarantors. In the event that at any time any Subsidiary Guarantor pays an amount hereunder
in excess of the amount calculated pursuant to this paragraph, that Subsidiary Guarantor shall be deemed to be a Funding Guarantor
to the extent of such excess and shall be entitled to a Reimbursement Contribution from the other Guarantors in accordance with
the provisions of this §37.

 

    (e)        It
is the intent of each Subsidiary Guarantor, the Agent and the Lenders that in any proceeding under the Bankruptcy Code or any
similar debtor relief laws, such Subsidiary Guarantor’s maximum obligation hereunder shall equal, but not exceed, the maximum
amount which would not otherwise cause the obligations of such Subsidiary Guarantor hereunder (or any other obligations of such
Subsidiary Guarantor to the Agent and the Lenders under the Loan Documents) to be avoidable or unenforceable against such Subsidiary
Guarantor in such proceeding as a result of Applicable Law, including, without limitation, (i) Section 548 of the Bankruptcy Code
and (ii) any state fraudulent transfer or fraudulent conveyance act or statute applied in such proceeding, whether by virtue of
Section 544 of the Bankruptcy Code or otherwise. The Laws under which the possible avoidance or unenforceability of the obligations
of such Subsidiary Guarantor hereunder (or any other obligations of such Subsidiary Guarantor to the Agent and the Lenders under
the Loan Documents) shall be determined in any such proceeding are referred to herein as “Avoidance Provisions”. Accordingly,
to the extent that the obligations of a Subsidiary Guarantor hereunder would otherwise be subject to avoidance under the Avoidance
Provisions, the maximum Obligations for which such Subsidiary Guarantor shall be liable hereunder shall be reduced to the greater
of (A) the amount which, as of the time any of the Obligations are deemed to have been incurred by such Subsidiary Guarantor under
the Avoidance Provisions,

 

    97

     

    

 

would not cause the obligations of such Subsidiary Guarantor hereunder (or any other obligations of
such Subsidiary Guarantor to the Agent and the Lenders under the Loan Documents), to be subject to avoidance under the Avoidance
Provisions or (B) the amount which, as of the time demand is made hereunder upon such Subsidiary Guarantor for payment on account
of the Obligations, would not cause the obligations of such Subsidiary Guarantor hereunder (or any other obligations of such Subsidiary
Guarantor to the Agent and the Lenders under the Loan Documents), to be subject to avoidance under the Avoidance Provisions. The
provisions of this §37(e) are intended solely to preserve the rights of the Agent and the Lenders hereunder to the maximum
extent that would not cause the obligations of any Subsidiary Guarantor hereunder to be subject to avoidance under the Avoidance
Provisions, and no Subsidiary Guarantor or any other Person shall have any right or claim under this Section as against the Agent
and the Lenders that would not otherwise be available to such Person under the Avoidance Provisions. 

 

    98

     

    

 

 IN
WITNESS WHEREOF, each of the undersigned have caused this Agreement to be executed by its duly authorized representatives
as of the date first set forth above. 

	 	 	 	 
	 	BORROWER:	 
	 	 	 
	 	MOODY NATIONAL OPERATING PARTNERSHIP II, LP, a Delaware limited partnership
	 	 	 	 
	 	By:	Moody National REIT II, Inc., a Maryland corporation, its General partner
	 	 	 	 
	 	 	By:	/s/ Brett
    C. Moody
	 	 	Name:	Brett C. Moody
	 	 	Title:	President
	 	 	 	 
	 	Acknowledged
        and Agreed:
	 	 
	 	MOODY
        NATIONAL REIT II, INC., a Maryland corporation
	 	 	 
	 	By:	/s/ Brett
    C. Moody
	 	Name:  	Brett C. Moody
	 	Title:	President
	 	 	 
	 	MOODY NATIONAL 1 POLITO LYNDHURST HOLDING, LLC, a Delaware limited liability company
	 	 	 
	 	By:	/s/ Brett
    C. Moody
	 	Name:	Brett C. Moody
	 	Title:	President
	 	 	 
	 	MN
        LYNDHURST VENTURE, LLC, a Delaware limited liability company
	 	 	 
	 	By:	/s/ Brett
    C. Moody
	 	Name:	Brett C. Moody
	 	Title:	President

 

  [SIGNATURES
CONTINUE ON FOLLOWING PAGE]

 

[SIGNATURE PAGE
TO TERM LOAN AGREEMENT] 

 

     

     

    

 

	 	MOODY NATIONAL INTERNATIONAL-FORT WORTH HOLDING, LLC, a Delaware limited liability company
	 	 	 
	 	By:	/s/ Brett C. Moody
	 	Name:	Brett C. Moody
	 	Title:	President
	 	 	 
	 	MN
        FORT WORTH VENTURE, LLC, a Delaware limited liability company
	 	 	 
	 	By:	/s/ Brett
    C. Moody
	 	Name:	Brett C. Moody
	 	Title:	President
	 	 	 
	 	MN
        REIT II TRS, INC.
	 	 	 
	 	By:	/s/ Brett
    C. Moody
	 	Name:	Brett C. Moody
	 	Title:	President

 

[SIGNATURES
CONTINUE ON FOLLOWING PAGE]

 

[SIGNATURE PAGE
TO TERM LOAN AGREEMENT] 

 

     

     

    

 

	 	 	 	 
	 	AGENT
AND LENDER:
	 	 	 
	 	KEYBANK NATIONAL ASSOCIATION, a national banking association, individually and as Agent
	 	 	 
	 	By:	/s/ Jennifer L. Power
	 	Name:	Jennifer L. Power
	 	Title:	Vice President

 

KeyBank
National Association

1200
Abernathy Road NE, Suite 1550

Atlanta, Georgia 30328

Attention: Jennifer L. Power, Vice President

Telephone:
770-510-2101

 

[SIGNATURE PAGE
TO TERM LOAN AGREEMENT]

 

     

     

    

 

EXHIBIT
A

 

FORM
OF NOTE

 

PROMISSORY
NOTE

 

	$70,000,000.00	_________ __, 2017

 

FOR
VALUE RECEIVED, the undersigned (collectively, “Maker”), hereby promise to pay to [_________________________________________]
(“Payee”), or order, in accordance with the terms of that certain Term Loan Agreement, dated as of [________
___], 2017, as from time to time in effect, among MOODY NATIONAL OPERATING PARTNERSHIP II, LP, a Delaware limited partnership
(the “Borrower”), KeyBank National Association, for itself and as Agent, and such other Lenders as may be from
time to time named therein (as amended, restated or other modified, the “Loan Agreement”), to the extent not
sooner paid, on or before the Maturity Date, the principal sum of [_______________________AND ___/100 DOLLARS ($______________)],
or such amount as may be advanced by the Payee under the Loan Agreement, with daily interest from the date thereof, computed as
provided in the Loan Agreement, on the principal amount hereof from time to time unpaid, at a rate per annum on each portion of
the principal amount which shall at all times be equal to the rate of interest applicable to such portion in accordance with the
Loan Agreement, and with interest on overdue principal and, to the extent permitted by Applicable Law, on overdue installments
of interest and late charges at the rates provided in the Loan Agreement. Interest shall be payable on the dates specified in
the Loan Agreement, except that all accrued interest shall be paid at the stated or accelerated maturity hereof or upon the prepayment
in full hereof. Capitalized terms used herein and not otherwise defined herein shall have the meanings set forth in the Loan Agreement.

 

Payments
hereunder shall be made to the Agent for the Payee at [127 Public Square, Cleveland, Ohio 44114-1306], or at such other
address as Agent may designate from time to time, or made by wire transfer in accordance with wiring instructions provided by
the Agent.

 

This
Note is one of one or more Notes evidencing borrowings under and is entitled to the benefits and subject to the provisions of
the Loan Agreement. The principal of this Note may be due and payable in whole or in part prior to the Maturity Date and is subject
to mandatory prepayment in the amounts and under the circumstances set forth in the Loan Agreement, and may be prepaid in whole
or from time to time in part, all as set forth in the Loan Agreement.

 

Notwithstanding
anything in this Note to the contrary, all agreements between the undersigned Maker and the Lenders and the Agent, whether now
existing or hereafter arising and whether written or oral, are hereby limited so that in no contingency, whether by reason of
acceleration of the maturity of any of the Obligations or otherwise, shall the interest contracted for, charged or received by
the Lenders exceed the maximum amount permissible under Applicable Law. If, from any circumstance whatsoever, interest would otherwise
be payable to the Lenders in excess of the maximum lawful amount, the interest payable to the Lenders shall be reduced to the
maximum amount permitted under Applicable Law; and if from any circumstance the Lenders shall ever receive anything of value deemed
interest by Applicable Law in excess of the maximum lawful amount, an amount equal to any excessive interest shall be applied
to the reduction of the principal balance of the Obligations of the undersigned Maker and to the payment of interest or, if such
excessive interest exceeds the unpaid balance of principal of the Obligations of the undersigned Maker, such excess shall be refunded
to the undersigned Maker. All interest paid or agreed to be paid to the Lenders shall, to the extent permitted by Applicable Law,
be amortized, prorated, allocated and spread throughout the full period until payment in full of the principal of the Obligations
of the undersigned Maker (including the period of any renewal or extension thereof) so that the interest thereon for such full
period shall not exceed the maximum amount permitted by Applicable Law. This paragraph shall control all agreements between the
undersigned Maker and the Lenders and the Agent.

 

    Exhibit A-3

     

    

 

In
case an Event of Default shall occur, the entire principal amount of this Note may become or be declared due and payable in the
manner and with the effect provided in said Loan Agreement.

 

This
Note shall be governed by the laws of the State of New York, including, without limitation, New York General Obligations Law Section
5-1401.

 

Time
is of the essence with respect to every provision hereof.

 

The
undersigned Maker and all guarantors and endorsers, to the extent permitted by Applicable Law, hereby waive presentment, demand,
notice, protest, notice of intention to accelerate the indebtedness evidenced hereby, notice of acceleration of the indebtedness
evidenced hereby and all other demands and notices in connection with the delivery, acceptance, performance and enforcement of
this Note, except as specifically otherwise provided in the Loan Agreement, and assent to extensions of time of payment or forbearance
or other indulgence without notice.

 

[Remainder
of Page Intentionally Blank]

 

    Exhibit B-4

     

    

IN
WITNESS WHEREOF, the undersigned has by its duly authorized representative executed this Note on the day and year first above
written.

	 	
	 	MOODY
    NATIONAL OPERATING PARTNERSHIP II, LP, a Delaware limited partnership
	 	 
	 	By:
    Moody National REIT II, Inc., a Maryland corporation, its General Partner
	 	 
		By: 	 
		Name:	Brett
    C. Moody
		Title:	President

 

    Exhibit A-1

     

    

 

EXHIBIT
B

 

Intentionally
deleted

 

    Exhibit B-1

     

    

 

EXHIBIT
C

 

FORM
OF CONVERSION/CONTINUATION REQUEST

 

KeyBank
National Association, as Agent

1200 Abernathy Road NE, Suite 1550 

Atlanta,
GA 30328 

Attention:
Jennifer L. Power, Vice President

 

Ladies
and Gentlemen:

 

Reference
is hereby made to that certain Term Loan Agreement, dated as of _____________ __, 2017 (as the same may hereafter be amended,
the “Loan Agreement”), among Moody National Operating Partnership II, LP (the “Borrower”), the other Credit
Parties thereto from time to time, KeyBank National Association for itself and as Agent, and the other Lenders from time to time
party thereto. Terms defined in the Loan Agreement are used herein with the meanings so defined.

 

Loan.
The undersigned Borrower on behalf of Borrower hereby requests the conversion or continuation of a Loan under the Loan Agreement
as follows:

 

Principal
Amount to be converted/continued: $__________

Current Type (LIBOR Rate, Base Rate): 

If
applicable, end date of current Interest Period:

Effective date of election1: 

Elected
Type (LIBOR Rate, Base Rate):

Interest Period for LIBOR Rate Loans:

 

2.        No
Default. If this request relates to the conversion of any portion of the loan into, or continuation of any portion of the
Loan as, a LIBOR Rate Loan, the undersigned Authorized Officer or chief financial officer or chief accounting officer of Borrower
certifies that the Credit Parties are in compliance with all covenants under the Loan Documents and no Default or Event of Default
has occurred and is continuing.

 

[Signature
on Next Page]

 

 

1
Which must be a Business Day. 

  

    C-1

     

    

 

IN
WITNESS WHEREOF, the undersigned has duly executed this request this _____ day of _____________, 201__.

 

	 	MOODY
    NATIONAL OPERATING PARTNERSHIP II, LP, a Delaware limited partnership
	 	 	 
		By:	Moody
    National REIT II, Inc., a Maryland
	 	 	corporation,
    its General Partner
	 	 	 
		 	By: 	 
		 	Name:	Brett
    C. Moody
		 	Title:	President

  

    C-2

     

    

 

EXHIBIT
D

 

INTENTIONALLY
DELETED

 

    D-1

     

    

 

EXHIBIT
E

 

INTENTIONALLY
DELETED

 

    E-1

     

    

 

EXHIBIT
F

 

FORM
OF COMPLIANCE CERTIFICATE

 

 

    F-1

     

    

 

EXHIBIT
G

 

FORM
OF ASSIGNMENT AND ACCEPTANCE AGREEMENT

 

THIS
ASSIGNMENT AND ACCEPTANCE AGREEMENT (this “Agreement”) dated ____________________, by and between ____________________________
(“Assignor”), and ____________________________ (“Assignee”).

 

W
I T N E S S E T H:

 

WHEREAS,
Assignor is a party to that certain Term Loan Agreement, dated as of ____________ __, 2017, by and among MOODY NATIONAL OPERATING
PARTNERSHIP II, LP, a Delaware limited partnership (“Borrower”), the other lenders that are or may become a party
thereto, and KEYBANK NATIONAL ASSOCIATION, a national banking association, individually and as Agent (as the same may hereafter
be amended, the “Loan Agreement”); and

 

WHEREAS,
Assignor desires to transfer to Assignee [Describe assigned Commitment] under the Loan Agreement and its rights with respect
to the Commitment assigned;

 

NOW,
THEREFORE, for and in consideration of the sum of Ten and No/100 Dollars ($10) and other good and valuable considerations,
the receipt and sufficiency of which are hereby acknowledged, Assignor and Assignee hereby agree as follows:

 

1.       Definitions.
Terms defined in the Loan Agreement and used herein without definition shall have the respective meanings assigned to such terms
in the Loan Agreement.

 

2.       Assignment.

 

(a)       Subject
to the terms and conditions of this Agreement and in consideration of the payment to be made by Assignee to Assignor pursuant
to Paragraph 5 of this Agreement, effective as of the “Assignment Date” (as defined in Paragraph 7 below), Assignor
hereby irrevocably sells, transfers and assigns to Assignee, without recourse, a portion of its Commitment in the amount of $_______________
representing a Commitment Percentage equal to ______%, and a corresponding interest in and to all of the other rights and obligations
under the Loan Agreement and the other Loan Documents relating thereto (the assigned interests being hereinafter referred to as
the “Assigned Interests”), including Assignor’s share of all the Loan with respect to the Assigned Interests
and the right to receive interest and principal on and all other fees and amounts with respect to the Assigned Interests, all
from and after the Assignment Date, all as if Assignee were an original Lender under and signatory to the Loan Agreement having
a Commitment Percentage equal to the amount of the respective Assigned Interests.

 

(b)       Assignee,
subject to the terms and conditions hereof, hereby assumes all obligations of Assignor with respect to the Assigned Interests
from and after the Assignment Date as if Assignee were an original Lender under and signatory to the Loan Agreement, which obligations
shall include, but shall not be limited to, the obligation to lend to the Borrower with respect to the Assigned Interests and
to indemnify the Agent as provided therein (such obligations, together with all other obligations set forth in the Loan Agreement
and the other Loan Documents are hereinafter collectively referred to as the “Assigned Obligations”). Assignor shall
have no further duties or obligations with respect to, and shall have no further interest in, the Assigned Obligations or the
Assigned Interests.

 

    G-1

     

    

 

3.       Representations
and Requests of Assignor.

 

(a)       Assignor
represents and warrants to Assignee (i) that it is legally authorized to, and has full power and authority to, enter into this
Agreement and perform its obligations under this Agreement; (ii) that as of the date hereof, before giving effect to the assignment
contemplated hereby the principal face amount of Assignor’s Note is $____________, and (iii) that it has forwarded to the
Agent the Note held by Assignor. Assignor makes no representation or warranty, express or implied, and assumes no responsibility
with respect to any statements, warranties or representations made in or in connection with the Loan Documents or the execution,
legality, validity, enforceability, genuineness or sufficiency of any Loan Document or any other instrument or document furnished
pursuant thereto or in connection with the Loan, the collectability of the Loan, the continued solvency of the Borrower or the
continued existence, sufficiency or value of the Collateral or any assets of the Borrower which may be realized upon for the repayment
of the Loan, or the performance or observance by the Borrower of any of its obligations under the Loan Documents to which it is
a party or any other instrument or document delivered or executed pursuant thereto or in connection with the Loan; other than
that it is the legal and beneficial owner of, or has the right to assign, the interests being assigned by it hereunder and that
such interests are free and clear of any adverse claim.

 

(b)       Assignor
requests that the Agent obtain replacement notes for each of Assignor and Assignee as provided in the Loan Agreement.

 

4.       Representations
of Assignee. Assignee makes and confirms to the Agent, Assignor and the other Lenders all of the representations, warranties
and covenants of a Lender under Articles 14 and 18 of the Loan Agreement. Without limiting the foregoing, Assignee (a) represents
and warrants that it is legally authorized to, and has full power and authority to, enter into this Agreement and perform its
obligations under this Agreement; (b) confirms that it has received copies of such documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this Agreement; (c) agrees that it has and will, independently
and without reliance upon Assignor, any other Lender or the Agent and based upon such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in evaluating the Loans, the Loan Documents, the creditworthiness
of the Borrower and the value of the assets of the Borrower, and taking or not taking action under the Loan Documents; (d) appoints
and authorizes the Agent to take such action as agent on its behalf and to exercise such powers as are reasonably incidental thereto
pursuant to the terms of the Loan Documents; (e) agrees that, by this Assignment, Assignee has become a party to and will perform
in accordance with their terms all the obligations which by the terms of the Loan Documents are required to be performed by it
as a Lender; (f) represents and warrants that Assignee does not control, is not controlled by, is not under common control with
and is otherwise free from influence or control by, the Credit Parties, (g) represents and warrants that Assignee is subject to
control, regulation or examination by a state or federal regulatory agency, and (h) agrees that if Assignee is not incorporated
under the laws of the United States of America or any State, it has on or prior to the date hereof delivered to Borrower and Agent
certification as to its exemption (or lack thereof) from deduction or withholding of any United States federal income taxes. Assignee
agrees that Borrower may rely on the representation contained in this §4.

 

    G-2

     

    

 

5.       Payments
to Assignor. In consideration of the assignment made pursuant to Paragraph 1 of this Agreement, Assignee agrees to pay to
Assignor on the Assignment Date, an amount equal to $____________ representing the aggregate principal amount outstanding of the
Loan owing to Assignor under the Loan Agreement and the other Loan Documents with respect to the Assigned Interests.

 

6.       Payments
by Assignor. Assignor agrees to pay the Agent on the Assignment Date the registration fee required by §18.2 of the Loan
Agreement.

 

7.       Effectiveness.

 

(a)       The
effective date for this Agreement shall be _______________ (the “Assignment Date”). Following the execution of this
Agreement, each party hereto shall deliver its duly executed counterpart hereof to the Agent for acceptance and recording in the
Register by the Agent.

 

(b)       Upon
such acceptance and recording and from and after the Assignment Date, (i) Assignee shall be a party to the Loan Agreement and,
to the extent of the Assigned Interests, have the rights and obligations of a Lender thereunder, and (ii) Assignor shall, with
respect to the Assigned Interests, relinquish its rights and be released from its obligations under the Loan Agreement.

 

(c)       Upon
such acceptance and recording and from and after the Assignment Date, the Agent shall make all payments in respect of the rights
and interests assigned hereby accruing after the Assignment Date (including payments of principal, interest, fees and other amounts)
to Assignee.

 

(d)       All
outstanding LIBOR Rate Loans shall continue in effect for the remainder of their applicable Interest Periods and Assignee shall
accept the currently effective interest rates on its Assigned Interest of each LIBOR Rate Loan.

 

8.       Notices.
Assignee specifies as its address for notices and its Lending Office for all assigned Loans, the offices set forth below:

 

                Notice
Address:     ____________________________

   ____________________________

   ____________________________

   Attn:________________________

   Facsimile:

 

Domestic
Lending Office: Same as above

 

Eurodollar
Lending Office: Same as above

 

    G-3

     

    

 

9.       Payment
Instructions. All payments to Assignee under the Loan Agreement shall be made as provided in the Loan Agreement in accordance
with the separate instructions delivered to Agent.

 

10.       Governing
Law. THIS AGREEMENT IS INTENDED TO TAKE EFFECT AS A SEALED INSTRUMENT FOR ALL PURPOSES AND TO BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (WITHOUT REFERENCE TO CONFLICT OF LAWS).

 

11.       Counterparts.
This Agreement may be executed in any number of counterparts which shall together constitute but one and the same agreement.

 

12.       Amendments.
This Agreement may not be amended, modified or terminated except by an agreement in writing signed by Assignor and Assignee, and
consented to by Agent.

 

13.       Successors.
This Agreement shall inure to the benefit of the parties hereto and their respective successors and assigns as permitted by the
terms of Loan Agreement.

 

[signatures
on following page]

 

    G-4

     

    

 

IN
WITNESS WHEREOF, intending to be legally bound, each of the undersigned has caused this Agreement to be executed on its behalf
by its officers thereunto duly authorized, as of the date first above written.

 

	 	ASSIGNEE:
	 	 	 
	 	By:	 
	 	Title:
	 	 	 
	 	ASSIGNOR:
	 	 	 
	 	By:	 
	 	Title:

 

RECEIPT
ACKNOWLEDGED AND ASSIGNMENT CONSENTED TO BY:

 

	KEYBANK
    NATIONAL ASSOCIATION, as Agent	 
	 	 	 
	By:	 	 
	Title:	 	 
	 	 	 
	MOODY
    NATIONAL OPERATING PARTNERSHIP II, LP [delete if inapplicable]	 
	 	 	 
	By:	 	 
	Title:	 	 

  

    G-5

     

    

 

EXHIBIT
NCF

 

NET
CASH FLOW SPREADSHEET

 

 

 

    Exhibit NCF – Page 1

     

    

 

EXHIBIT
2.6

 

ACQUISITION
SOURCES AND USES

 

[OPEN]

 

    Exhibit 2.6 – Page 1

     

    

 

EXHIBIT
7.17(a)(i)

 

MORTGAGED
PROPERTY ACCOUNT DISBURSEMENTS

 

Provided
no Event of Default shall then exist, Agent shall apply all funds on deposit in each Mortgaged Property Controlled Account to
the following Subaccounts for each Mortgaged Property in the following amounts and order of priority as per Agent’s or its
designee’s written instructions:

 

(a)       First,
whether or not an Event of Default exists, and regardless of whether Agent has accelerated the Loan, Agent shall disburse funds
on deposit in the Collected Taxes Subaccount to (or at the direction of) the applicable Master Tenant for payment to the relevant
tax authorities; provided that at Agent’s election such amounts may be paid directly to such tax authorities; provided,
further, that any such amounts shall not constitute Rent payable by such Master Tenant to the applicable Mortgaged Property Owner
under the Master Lease (but instead shall be paid out of the Master Tenant’s own funds); provided, further, that the foregoing
shall not make Agent liable for payment of the Collected Taxes or for any shortfall thereof;

 

(b)       Then,
payments for monthly Operating Expenses for the applicable period in accordance with the related approved annual budget for such
Mortgaged Property shall be deposited into the Operating Expense Subaccount;

 

(c)       Then,
payments for Extraordinary Expenses for the applicable period for such Mortgaged Property approved by Agent, if any, shall be
deposited into the Extraordinary Expense Subaccount;

 

(d)       Then,
funds, if any, sufficient to pay the monthly deposit to the Tax and Insurance Escrow Fund for such Mortgaged Property required
by the Agent, which amounts shall be deposited in the Tax and Insurance Escrow Subaccount;

 

(e)       Then,
funds sufficient to pay the FF&E Reserve as required by the Agent for such Mortgaged Property, which amounts shall be deposited
into the FF&E Subaccount;

 

(f)       Then,
such amounts then remaining after deposits of items (a) through (e) (the “Excess Cash Flow”) as may be necessary
to provide the necessary funds (after receipt of the monthly Net Consolidated Cash Flow distributed pursuant to Section 7.17)
to make all payments and deposits set forth in Sections 7.18(c)(i) through (vi) of the Credit Agreement, shall be distributed
to the Collection Account for further distribution as provided in Section 7.18 of the Credit Agreement.

 

    Exhibit 7.17(a)(i) – Page 1

     

    

 

EXHIBIT
7.18

 

FF&E/PIP
DISBURSEMENTS

 

1.1.1.  
FF&E Funds. Amounts deposited under Section 7.18(c)(iv) shall hereinafter be referred to as Borrower’s “FF&E
Funds” and the account in which such amounts are held shall hereinafter be referred to as Borrower’s “FF&E
Reserve.” Agent may reassess its estimate of the amount necessary for the FF&E Funds from time to time, and may
increase the monthly amounts required to be deposited into the FF&E Funds upon thirty (30) days’ notice to Borrower
if Agent determines in its discretion that an increase is necessary to maintain the proper maintenance and operation of the Real
Estate.

 

1.1.2.  
Disbursements from FF&E Reserve.

 

(a)       Agent
shall make disbursements from the FF&E Reserve to pay, or to reimburse the applicable Credit Party or Master Tenant, for the
costs of the FF&E Cost Items only. Agent shall not be obligated to make disbursements from the FF&E Reserve to pay, or
to reimburse the applicable Credit Party or Master Tenant, for the costs of routine maintenance to the Real Estate, replacements
of inventory or of a type not typically accounted for as an “FF&E” expense or of inventory consumed in the ordinary
course of the operation of the Real Estate.

 

(b)       Agent
shall, upon written request from the applicable Credit Party or Master Tenant and satisfaction of the requirements set forth in
this Section 1.1.2, disburse to the applicable Credit Party or Master Tenant, as the case may be, amounts from the FF&E
Reserve necessary to pay for the actual approved costs of FF&E Cost Items or to reimburse the applicable Credit Party or Master
Tenant therefor, upon completion of such FF&E Cost Items (or to pay vendors’ required deposits as provided under the
terms of the contract relating to the applicable Credit Party’s purchase of such FF&E Cost Items, or upon partial completion,
or to pay required installment payments, in the case of FF&E Cost Items made pursuant to Section 1.1.2(e) hereof) as determined
by Agent.

 

(c)       Each
request for disbursement from the FF&E Reserve shall be in a form specified or approved by Agent and shall specify (i) the
specific FF&E Cost Items for which the disbursement is requested, (ii) the quantity and price of each item purchased, if the
FF&E Cost Items includes the purchase or replacement of specific items, (iii) the price of all materials (grouped by type
or category) used in any FF&E Cost Items other than the purchase or replacement of specific items, and (iv) the cost of all
contracted labor or other services applicable to each FF&E Cost Items for which such request for disbursement is made. With
each request the applicable Credit Party, or Master Tenant, shall certify that all FF&E Cost Items for which such disbursement
is requested have been or will be made in accordance with all applicable Legal Requirements of any Governmental Authority having
jurisdiction over the Real Estate (or, in the case of a vendor’s required deposit, that such deposit is due and payable).
Each request for disbursement shall include copies of invoices for all items or materials purchased and all contracted labor or
services provided, or for the relevant required vendor’s deposit and, if the applicable Credit Party or Master Tenant is
seeking reimbursement rather than payment, evidence satisfactory to Agent of payment of all such amounts. Except as provided in
this Section 1.1.2 with respect to required vendor’s deposits or in Section 1.1.2(e) hereof, each request for disbursement
from the FF&E Reserve shall be made only after completion of the FF&E Cost Items for which disbursement is requested.
Borrower shall provide, or cause Master Tenant to provide, Agent evidence of completion of the subject FF&E Cost Items satisfactory
to Agent in its reasonable judgment.

 

    Exhibit 7.18 – Page 1

     

    

 

(d)       Borrower
shall pay, or shall cause Master Tenant to pay, all invoices in connection with the FF&E Cost Items with respect to which
a disbursement is requested prior to submitting such request for disbursement from the FF&E Reserve or, at the request of
Borrower or Master Tenant, Agent shall issue checks, payable to Borrower or Master Tenant, as applicable (or, in respect of any
requested check in excess of $25,000, joint checks payable to Borrower or Master Tenant (as applicable) and the contractor, supplier,
materialman, mechanic, subcontractor or other party to whom payment is due in connection with a FF&E Cost Items. In the case
of payments made by joint check, Agent may require a conditional waiver of lien from each Person who is to receive payment from
such payment prior to Agent’s disbursement thereof from the FF&E Reserve. In addition, as a condition to any disbursement,
Agent may require Borrower to obtain lien waivers, or conditional lien waivers, from each contractor, supplier, materialman, mechanic
or subcontractor who receives payment in an amount equal to or greater than $100,000.00 for completion of its work or delivery
of its materials. Any lien waiver or conditional lien waiver delivered hereunder shall conform to the requirements of applicable
law and shall cover all work performed and materials supplied (including equipment and fixtures) for the Real Estate by that contractor,
supplier, subcontractor, mechanic or materialman through the date covered by the current reimbursement request (or, if payment
to such contractor, supplier, subcontractor, mechanic or materialmen is to be made by a joint check, the release of lien shall
be effective through the date covered by the previous release of funds request).

 

(e)       If
(i) the contractor performing such FF&E Cost Items require periodic payments pursuant to terms of a written contract, and
(ii) in the case of a FF&E Cost Items the cost of which exceeds $100,000.00, Agent has approved in writing in advance (such
approval not to be unreasonably withheld, conditioned or delayed) such periodic payments, a request for reimbursement from the
FF&E Reserve may be made after completion of a portion of the work under such contract, provided (A) such contract requires
payment upon completion of such portion of the work or payment of a final installment prior to delivery of the FF&E Cost Items
to which such contract relates, (B) the materials for which the request is made are on site at the Real Estate and are properly
secured or have been installed in the Real Estate, or delivery thereof is conditioned upon payment of the requested disbursement,
(C) all other conditions in this Agreement for disbursement have been satisfied, (D) funds remaining in the FF&E Reserve are,
in Agent’s reasonable judgment, sufficient to complete such FF&E Cost Items, and (E) if required by Agent in respect
of any FF&E Cost Item the cost of which exceeds $100,000 and which involves the performance of work to the Real Estate by
a contractor engaged for such purpose, each contractor or subcontractor receiving payments under such contract shall provide a
waiver of lien with respect to amounts which have been paid to that contractor or subcontractor.

 

(f)        Borrower
shall not make a request for disbursement from the FF&E Reserve more frequently than once in any calendar month and (except
in connection with the final disbursement) the total cost of all FF&E Cost Items in any request shall not be less than $5,000.00.

 

    Schedule 1.1 - Page 2

     

    

 

1.1.3.
  Performance of FF&E Cost Items.

 

(a)       Borrower
shall make or cause Master Tenant to make FF&E Cost Items when required in order to keep the Real Estate in condition and
repair consistent with other comparable properties in the same market segment in the metropolitan area in which the Real Estate
is located, the brand standards provided in the Franchise Agreement and to keep the Real Estate or any portion thereof from deteriorating.
Borrower shall complete or cause Master Tenant to complete all FF&E Cost Items in a good and workmanlike manner as soon as
practicable following the commencement of making each such FF&E Cost Items.

 

(b)       Agent
reserves the right, at its option, to approve each contract or work order with any materialman, mechanic, supplier, subcontractor,
contractor or other party providing labor or materials in connection with the FF&E Cost Items the total contracted-for payments
to which exceed $100,000. Upon Agent’s request with respect to any Mortgaged Property, Borrower shall assign to Agent any
such contract or subcontract to which a Credit Party is a party, or cause Master Tenant to assign to such Credit Party, and then
shall assign to Agent, any such contract or subcontract to which Master Tenant is a party.

 

(c)       In
the event Agent determines in its reasonable discretion that any FF&E Cost Items is not being performed in a workmanlike or
timely manner or that any FF&E Cost Items has not been completed in a workmanlike or timely manner or any FF&E Cost Items
does not comply with brand standards under the Franchise Agreement and such failure continues for more than thirty (30) days after
notice from Agent to Borrower, Agent shall have the option (upon five (5) Business Days’ notice to Borrower, except in the
case of an emergency) to withhold disbursement for such unsatisfactory FF&E Cost Items and to proceed under existing contracts
or, with respect to any Mortgaged Property, to contract with third parties to complete such FF&E Cost Items and to apply the
FF&E Funds toward the labor and materials necessary to complete such FF&E Cost Items, without providing any further notice
to Borrower and to exercise any and all other remedies available to Agent upon an Event of Default hereunder.

 

(d)       In
order to facilitate Agent’s completion or making of such FF&E Cost Items pursuant to Section 1.1.3(c)
above, each Credit Party grants Agent the right, during the existence of an Event of Default or as necessary to respond to
emergency conditions, to enter onto any Mortgaged Property and perform any and all work and labor necessary to complete or
make such FF&E Cost Items or employ watchmen to protect the Real Estate from damage. All sums so expended by Agent, to
the extent not from the FF&E Funds, shall be deemed to have been advanced under the Loan to Borrower and secured by the
Security Documents. For this purpose each Credit Party constitutes and appoints Agent its true and lawful attorney in fact
with full power of substitution to complete or undertake such FF&E Cost Items in the name of each Credit Party. Such
power of attorney shall be deemed to be a power coupled with an interest and cannot be revoked. Each Credit Party empowers
said attorney in fact as follows: (i) to use any funds in the FF&E Reserve for the purpose of making or completing such
FF&E Cost Items; (ii) to make such additions, changes and corrections to such FF&E Cost Items as shall be necessary
or desirable to complete such FF&E Cost Items; (iii) to employ such contractors, subcontractors, agents, architects and
inspectors as shall be required for such purposes; (iv) to pay, settle or compromise all existing bills and claims which are
or may become Liens against the Real Estate, or as may be necessary or desirable for the completion of such FF&E Cost
Items, or for clearance of title; (v) to execute all applications and certificates in the name of such Credit Party which may
be required by any of the contract documents; (vi) to prosecute and defend all actions or proceedings in connection with the
Real Estate or the rehabilitation and repair of the Real Estate; and (vii) to do any and every act which a Credit Party might
do in its own behalf to fulfill the terms of this Agreement.

 

    Schedule 1.1 - Page 3

     

    

 

(e)       Nothing
in this Section 1.1.3 shall: (i) make Agent responsible for making or completing any FF&E Cost Items; (ii) require
Agent to expend funds in addition to the FF&E Funds to make or complete any FF&E Cost Items; (iii) obligate Agent to proceed
with any FF&E Cost Items; or (iv) obligate Agent to demand from Borrower additional sums to make or complete any FF&E
Cost Items.

 

(f)       Each
Credit Party shall permit, and shall cause Master Tenant to permit, Agent and Agent’s agents and representatives (including
Agent’s engineer, architect, or inspector) or third parties making FF&E Cost Items pursuant to this Section 1.1.3 to enter onto any Mortgaged Property during normal business hours (subject to the rights of Tenants under their Leases or
Hotel Transactions) to inspect the progress of any FF&E Cost Items and all materials being used in connection therewith, to
examine all plans and shop drawings relating to such FF&E Cost Items which are or may be kept at the Real Estate, and to complete
any FF&E Cost Items made pursuant to this Section 1.1.3. Each Credit Party shall cause, or shall cause Master Tenant
to cause, all contractors and subcontractors to cooperate with Agent or Agent’s representatives or such other persons described
above in connection with inspections described in this Section 1.1.3(f) or the completion of FF&E Cost Items pursuant
to this Section 1.1.3.

 

(g)       Agent
may require an inspection of any Mortgaged Property at Borrower’s expense prior to making a disbursement in excess of $100,000
from the FF&E Reserve in respect of any completed FF&E Cost Items in in order to verify completion of the FF&E Cost
Items for which reimbursement is sought. Agent may require that such inspection be conducted by an appropriate independent qualified
professional selected by Agent or may require a copy of a certificate of completion by an independent qualified professional acceptable
to Agent prior to the disbursement of any amount in excess of $100,000 from the FF&E Reserve. Borrower shall pay the expense
of the inspection as required hereunder, whether such inspection is conducted by Agent or by an independent qualified professional.

 

(h)       The
FF&E Cost Items and all materials, equipment, fixtures, or any other item comprising a part of any FF&E Cost Items shall
be constructed, installed or completed, as applicable, free and clear of all mechanic’s, materialmen’s or other liens
(except for those Liens existing on the date of this Agreement which have been approved in writing by Agent or otherwise exist
in compliance with the Loan Documents).

 

(i)       Before
each disbursement from the FF&E Reserve, Agent may require Borrower to provide Agent with a search of title to the Real Estate
effective to the date of the disbursement, which search shows that no mechanic’s or materialmen’s liens or other liens
of any nature have been placed against the Real Estate since the date of recordation of the related Security Document and that
title to the Real Estate is free and clear of all Liens (other than the lien of the related Security Instrument and any other
Liens previously approved in writing by Agent, if any).

 

    Schedule 1.1 - Page 4

     

    

 

(j)        All
FF&E Cost Items shall comply with all applicable Legal Requirements of all Governmental Authorities having jurisdiction over
the Real Estate and applicable insurance requirements including applicable building codes, special use permits, environmental
regulations, and requirements of insurance underwriters.

 

(k)       In
addition to any insurance required under the Loan Documents, Borrower shall to the extent applicable provide or cause to be provided
workmen’s compensation insurance, builder’s risk, and public liability insurance and other insurance to the extent
required under applicable law in connection with a particular FF&E Cost Items. All such policies shall be in form and amount
reasonably satisfactory to Agent. All such policies with respect to any Mortgaged Property which can be endorsed with standard
mortgagee clauses making loss payable to Agent or its assigns shall be so endorsed. Certified copies of such policies shall be
delivered to Agent.

 

1.1.4.  
Failure to Make FF&E Cost Items.

 

(a)       It
shall be an Event of Default under this Agreement if any Credit Party fails to comply with any provision of this Section 1.1 and
such failure is not cured within thirty (30) days after notice from Agent; provided, however, if such failure is not capable of
being cured within said thirty (30) day period, then provided that Borrower commences, or causes commencement of, action to complete
such cure and thereafter diligently proceeds to complete such cure (or causes it to be so completed), such thirty (30) day period
shall be extended for such time as is reasonably necessary for Borrower or Master Tenant, in the exercise of due diligence, to
cure such failure, but such additional period of time shall not exceed ninety (90) days. Upon the occurrence and during the continuation
of such an Event of Default, Agent may use the FF&E Funds (or any portion thereof) for any purpose, including completion of
the FF&E Cost Items as provided in Section 1.1.3, or for any other repair or replacement to the Real Estate or toward payment
of the Obligations in such order, proportion and priority as Agent may determine in its sole discretion. Agent’s right to
withdraw and apply the FF&E Funds shall be in addition to all other rights and remedies provided to Agent under this Agreement
and the other Loan Documents.

 

(b)       Nothing
in this Agreement shall obligate Agent to apply all or any portion of the FF&E Funds on account of an Event of Default to
payment of the Obligations or in any specific order or priority.

 

1.1.5.  
Balance in the FF&E Reserve. The insufficiency of any balance in the FF&E Reserve shall not relieve any Credit
Party from its obligation to fulfill all preservation and maintenance covenants in the Loan Documents.

 

PIP
Reserve.

 

1.1.6.  
PIP Reserve Fund. Amounts deposited pursuant to Section 7.18((c)(v) of the Term Loan Agreement are referred
to herein as the “PIP Reserve Fund” and the account in which such amounts are held by Agent shall hereinafter
be referred to as the “PIP Reserve Account.”

 

    Schedule 1.1 - Page 5

     

    

 

1.1.7.
Disbursements from the PIP Reserve Account. Agent shall disburse PIP Reserve Funds only for PIP Requirements or upon completion
of PIP Requirements. Provided no Event of Default as a result of which the Obligations have been accelerated has occurred and
is continuing, Agent shall disburse PIP Reserve Funds to the applicable Credit Party (for itself or on behalf of a Subsidiary)
or Master Tenant, as the case may be, within fifteen (15) Business Days after the delivery by such Credit Party or Master Tenant
to Agent of a request therefor (but not more often than once per month), in increments of at least $10,000 (or a lesser amount
if the total amount of the PIP Reserve Funds is less than $10,000, in which case only one disbursement of the amount remaining
shall be made), accompanied by the following items (which items shall be in form and substance satisfactory to Agent): (i) an
Officer’s Certificate (A) stating that the items to be funded by the requested disbursement are PIP Requirements, (B) stating
that all PIP Requirements at the Real Estate to be funded by the requested disbursement have been completed in a good and workmanlike
manner and in accordance with all Legal Requirements, (C) identifying each Person that supplied materials or labor in connection
with the PIP Requirements to be funded by the requested disbursement, (D) stating that each such Person has been paid in full
or will be paid in full upon such disbursement, or to pay vendors’ required deposits or installment payments as provided
under the terms of the contract relating to Borrower’s or a Subsidiary’s purchase of such PIP Requirements (and certifying
that such deposit is due and payable), or, if such payment is a progress payment, that such payment represents full payment to
such Person, less any applicable retention amount, for work completed through the date of the relevant invoice from such Person,
(E) stating that the PIP Requirements (or relevant portion thereof) to be funded have not been the subject of a previous disbursement,
and (F) stating that all previous disbursements for PIP Requirements have been used to pay the previously identified PIP Requirements,
(ii) as to any completed PIP Requirements, a copy of any license, permit or other approval by any Governmental Authority required,
if any, in connection with such PIP Requirement and not previously delivered to Agent, (iii) copies of appropriate lien waivers
(or conditional lien waivers) or other evidence of payment or entitlement to payment satisfactory to Agent, (iv) at Agent’s
option, if the cost of the PIP Requirements to be funded exceeds $50,000, a title search for the Real Estate indicating that the
Real Estate is free from all Liens, claims and other encumbrances not previously approved by Agent, (v) intentionally omitted,
and (vi) such other evidence as Agent shall reasonably request to demonstrate that the PIP Requirements to be funded by the requested
disbursement have been completed (or completed to the extent of the requested payment) and are paid for or will be paid upon such
disbursement to Borrower or Master Tenant, as the case may be.

 

    Schedule 1.1 - Page 6

     

    

 

SCHEDULE
1.1

 

LENDERS
AND COMMITMENTS

 

	

Name and Address
	

Commitment	
        Commitment 

        Percentage

	
        KeyBank National Association

        1200 Abernathy Road NE, Suite 1550

        Atlanta, Georgia 30328

        Attention: Jennifer L. Power, Vice President

        Telephone: 770 510 2101

        

         

        LIBOR Lending Office:

        Same as Above

         
	$70,000,000.00	100%

 

     Schedule 1.1 – Page 1

     

    

 

SCHEDULE 1.1-B

 

DISTRIBUTION INTEREST PLEDGE COLLATERAL

 

None

 

     Schedule 1.1 – Page 1

     

    

 

SCHEDULE 1.1-C

 

OWNERSHIP INTEREST PLEDGE COLLATERAL

 

	Pledgor	Issuer	Pledgor Ownership Interest in Issuer	% of Ownership Pledged
	Moody National Operating Partnership II, LP	Moody National Lancaster-Frazer Holding, LLC, a Delaware limited liability company	100%	45%
	Moody National Operating Partnership II, LP	Moody National Wood-Hou Holding, LLC, a Delaware limited liability company	100%	45%
	Moody National Operating Partnership II, LP	Moody National Governors-Austin Holding, LLC, a Delaware limited liability company	100%	45%
	Moody National Operating Partnership II, LP	Moody National Lancaster-Austin Holding, LLC, a Delaware limited liability company	100%	45%
	Moody National Operating Partnership II, LP	Moody National Broadway-Nashville Holding, LLC, a Delaware limited liability company	100%	45%
	Moody National Operating Partnership II, LP	Moody National Research-Austin Holding, LLC, a Delaware limited liability company	100%	45%
	Moody National Operating Partnership II, LP	Moody National HP N-Charles Holding, LLC, a Delaware limited liability company	100%	49%
	Moody National Operating Partnership II, LP	Moody National Katy EC-Houston Holding, LLC, a Delaware limited liability company	100%	49%
	Moody National Operating Partnership II, LP	Moody National Yale-Seattle Holding, LLC, a Delaware limited liability company	100%	45%

 

 

     Schedule 1.1 - Page 2

     

    

 

 

SCHEDULE
1.2

 

ELIGIBLE
REAL ESTATE QUALIFICATION DOCUMENTS

 

With respect to any parcel of Real Estate
of Borrower or a Subsidiary Guarantor to be included in the Collateral, each of the following, each in the each in the form reasonably
satisfactory to Agent:

 

(a)          Description
of Property. A narrative description of the Real Estate and the improvements thereon.

 

(b)         Security
Documents. Such Security Documents relating to such Real Estate as the Agent shall in good faith require, duly executed and
delivered by the respective parties thereto.

 

(c)          Enforceability
Opinion. If required by the Agent, the favorable legal opinion of counsel to Borrower or such Subsidiary Guarantor, from counsel
reasonably acceptable to the Agent and qualified to practice in the State in which such Real Estate is located, addressed to the
Lenders and the Agent covering the enforceability of such Security Documents and such other matters as the Agent shall reasonably
request.

 

(d)          Perfection
of Liens. Evidence reasonably satisfactory to the Agent that the Security Documents are effective to create in favor of the
Agent a legal, valid and enforceable first lien or security title and security interest in such Real Estate and that all filings,
recordings, deliveries of instruments and other actions necessary or desirable to protect and preserve such liens or security title
or security interests have been duly effected.

 

(e)          Survey
and Taxes. The Survey of such Real Estate, including a flood zone determination, together with the Surveyor Certification and
evidence of payment of all real estate taxes, assessments and municipal charges on such Real Estate which on the date of determination
are required to have been paid under §7.8.

 

(f)           Title
Insurance; Title Exception Documents. The Title Policy (or “marked” commitment/pro forma policy for a Title Policy)
covering such Real Estate, including all endorsements thereto, and together with proof of payment of all fees and premiums for
such policy, and true and accurate copies of all documents listed as exceptions under such policy and a copy of any applicable
vesting deed or ground lease.

 

(g)          UCC
Certification. A certification from the Title Insurance Company, records search firm, or counsel satisfactory to the Agent
that a search of the appropriate public records disclosed no conditional sales contracts, security agreements, chattel mortgages,
leases of personalty, financing statements or title retention agreements which affect any property, rights or interests of Borrower
or such Subsidiary Guarantor that are or are intended to be subject to the security interest, security title, assignments, pledges
and mortgage liens created by the Security Documents relating to such Real Estate except to the extent that the same are (i) discharged
and removed prior to or simultaneously with the inclusion of the Real Estate in the Collateral, or (ii) approved by Agent in its
sole discretion.

 

     Schedule 1.2 – Page 1

     

    

 

(h)          Management
Agreement. A true copy of the Management Agreement, if any, relating to such Real Estate, which shall be in form and substance
reasonably satisfactory to the Agent.

 

(i)           Leases.
True copies of the Hotel Leases, and any other leases, relating to such Real Estate, in form and substance reasonably satisfactory
to the Agent.

 

(j)           Subordination
Agreements. A Subordination, Attornment and Non-Disturbance Agreement from tenants of such Real Estate, other than the Master
Tenant, if any, as required by the Agent and in the form previously agreed to by Agent.

 

(k)          Estoppel
Certificates. Estoppel certificates from tenants of such Real Estate as required by Agent, such certificates to be dated not
more than thirty (30) days prior to the inclusion of such Real Estate in the Collateral, each such estoppel certificate to be in
form and substance reasonably satisfactory to the Agent.

 

(l)           Certificates
of Insurance. Each of (i) a current certificate of insurance as to the insurance maintained by Borrower or such Subsidiary
Guarantor on such Real Estate (including flood insurance if necessary) from the insurer or an independent insurance broker dated
as of the date of determination, identifying insurers, types of insurance, insurance limits, and policy terms; (ii) certified copies
of all policies evidencing such insurance (or certificates therefor signed by the insurer or an agent authorized to bind the insurer);
and (iii) such further information and certificates from Borrower or such Subsidiary Guarantor, its insurers and insurance brokers
as the Agent may reasonably request, all of which shall be in compliance with the requirements of this Agreement.

 

(m)         Property
Condition Report. If applicable, a property condition report (including any seismic probable maximum loss assessment) from
a firm of professional engineers or architects selected by Borrower and reasonably acceptable to Agent (the “Inspector”)
satisfactory in form and content to the Agent, dated not more than one hundred eighty (180) days prior to the inclusion of such
Real Estate in the Collateral, addressing such matters as the Agent may reasonably require.

 

(n)          Hazardous
Substance Assessments. A hazardous waste site assessment report addressed to the Agent (or the subject of a reliance letter
addressed to, and in a form reasonably satisfactory to, the Agent) concerning Hazardous Substances and asbestos on such Real Estate
dated or updated not more than ninety (90) days prior to the inclusion of such Real Estate in the Collateral, from the Environmental
Engineer, such report to contain no qualifications except those that are acceptable to the Agent in its sole discretion and to
otherwise be in form and substance reasonably satisfactory to the Agent in its sole discretion.

 

(o)          Zoning
and Land Use Compliance. Such evidence regarding zoning and land use compliance as the Agent may reasonably request.

 

(p)         Certificate
of Occupancy. A copy of the certificate(s) of occupancy issued to Borrower or any Subsidiary Guarantor for such parcel of Real
Estate permitting the use and occupancy of the Building thereon (or a copy of the certificates of occupancy issued for such parcel
of Real Estate and evidence satisfactory to the Agent that any previously issued certificate(s) of occupancy is not required to
be reissued to Borrower or any Subsidiary Guarantor), or a legal opinion or certificate from the appropriate authority reasonably
satisfactory to the Agent that no certificates of occupancy are necessary to the use and occupancy thereof.

 

     Schedule
                                                                                      1.2 -  Page 2

     

    

 

(q)          Appraisal.
An Appraisal of such Real Estate, in form and substance satisfactory to the Agent as provided in §5.2 and dated not more than
ninety (90) days prior to the inclusion of such Real Estate in the Collateral.

 

(r)           Budget.
An operating and capital expenditure budget for such Real Estate in form and substance reasonably satisfactory to the Agent and
together with a twelve (12) month cash flow projection. .

 

(s)          Operating
Statements. Operating statements for such Real Estate in the form of such statements delivered to the Lenders under §7.4(d)
covering each of the four fiscal quarters ending immediately prior to the addition of such Real Estate to the Collateral, to the
extent available.

 

(t)          Environmental
Disclosure. Such evidence regarding compliance with §6.20 as Agent may reasonably require.

 

(u)         Additional
Documents. Such other agreements, documents, certificates, reports or assurances as the Agent may reasonably require.

 

     Schedule 1.2 - Page 3

     

    

 

SCHEDULE
6.3

 

LIST
OF ALL ENCUMBRANCES ON ASSETS

 

None

 

     Schedule 6.3 – Page 1

     

    

 

SCHEDULE
6.7

 

SCHEDULE OF CURRENT LITIGATION

 

None

 

     Schedule 6.7 – Page 1

     

    

 

SCHEDULE
6.15

 

CERTAIN
TRANSACTIONS

 

None

 

     Schedule 6.15 – Page 1

     

    

 

SCHEDULE
6.20

 

ENVIRONMENTAL
MATTERS

 

None

 

     Schedule 6.20 – Page 1

     

    

 

SCHEDULE
6.22

 

LEASES
AND HOTEL LEASES

 

None

 

     Schedule 6.22 – Page 1

     

    

 

SCHEDULE
6.24

 

MATERIAL
AGREEMENTS

 

None

 

     Schedule 6.25 – Page 1

     

    

 

SCHEDULE
6.32

 

SUBSIDIARIES

 

MOODY NATIONAL REIT II,
INC. ORGANIZATIONAL CHART

 

 

 

     Schedule 6.32 – Page 1

     

    

 

 

 

 

     Schedule 6.32 – Page 2

     

    

 

 

 

 

     Schedule 6.32 – Page 3

     

    

 

SCHEDULE
PIP

 

PROPERTY
IMPROVEMENT PLANS

 

1.          Attachment
One to Exhibit C to Residence Inn by Marriott Relicensing Franchise Agreement between Marriott International, Inc. and Moody National
RI Grapevine MT, LLC (re: 2020 State Highway 26, Grapevine, TX 76051).

 

2.          Attachment
One to Exhibit C to Courtyard by Marriott Relicensing Franchise Agreement between Marriott International, Inc. and Moody National
CY Lyndhurst MT, LLC (re: 1 Polito Avenue, Lyndhurst, NJ 07071).

 

2121849.15

 

     Schedule 6.32 – Page 1Moody National REIT II, Inc. 8-K

 

Exhibit 10.2

GUARANTY

THIS GUARANTY dated
as of September 27, 2017, executed and delivered by each of the undersigned, whether one or more, (collectively, the “Guarantor”),
in favor of (a) KeyBank National Association, a national banking association, in
its capacity as agent (the “Agent”), for the Lenders under that certain Term Loan Agreement dated as of even
date herewith, by and among MOODY NATIONAL OPERATING PARTNERSHIP II, LP, a Delaware limited partnership (the “Borrower”),
the financial institutions party thereto and their assignees in accordance therewith (the “Lenders”), and the
Agent (as the same may be amended, restated, supplemented or otherwise modified from time to time in accordance with its terms,
the “Loan Agreement”), and (b) the Lenders. Capitalized terms used herein and not otherwise defined herein shall
have the meanings set forth in the Loan Agreement.

WHEREAS, pursuant
to the Loan Agreement, the Lenders have made available to the Borrower certain financial accommodations on the terms and conditions
set forth in the Loan Agreement;

WHEREAS, the Borrower
and Guarantor, though separate legal entities, are mutually dependent on each other in the conduct of their respective businesses
as an integrated operation and have determined it to be in their mutual best interests to obtain financing from the Agent and the
Lenders through their collective efforts;

WHEREAS, Guarantor
acknowledges that it will receive direct and indirect benefits from the Agent and the Lenders making such financial accommodations
available to the Borrower under the Loan Agreement and, accordingly, Guarantor is willing to guarantee the Borrower’s obligations
to the Agent and the Lenders on the terms and conditions contained herein; and

WHEREAS, Guarantor’s
execution and delivery of this Guaranty is one of the conditions precedent to the Agent and the Lenders making, or continuing to
make, such financial accommodations available to the Borrower.

NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by Guarantor, Guarantor agrees as
follows:

Section 1. Guaranty.
Guarantor hereby absolutely and unconditionally, jointly and severally, guaranties the due and punctual payment and performance
of all of the following when due (collectively referred to as the “Obligations”): (a) all indebtedness and obligations
owing by the Borrower to any of the Lenders or the Agent under or in connection with the Loan Agreement and any other Loan Document,
including without limitation, the repayment of all principal of the Loans made by the Lenders to the Borrower under the Loan Agreement
and the payment of all interest, fees, charges, reasonable attorneys fees and other amounts payable to any Lender or the Agent
thereunder or in connection therewith (including any obligations under any Derivatives Contract); (b) any and all extensions, renewals,
modifications, amendments or substitutions of the foregoing; and (c) all expenses, including, without limitation, reasonable attorneys’
fees and disbursements, that are incurred by the Lenders or the Agent in the enforcement of any of the foregoing or any obligation
of such Guarantor hereunder. Notwithstanding anything in the Guaranty to the contrary, the obligations guaranteed under this Guaranty
shall not include any Excluded Swap Obligations.

Section 2. Guaranty
of Payment and Not of Collection. This Guaranty is a guaranty of payment, and not of collection, and a debt of Guarantor for
its own account. Accordingly, the Lenders and the Agent shall not be obligated or required before enforcing this Guaranty against
any Guarantor: (a) to pursue any right or remedy the Lenders or the Agent may have against the Borrower, any other Guarantor or
any other Person or commence any suit or other proceeding against the Borrower, any other Guarantor or any other Person in any
court or other tribunal; (b) to make any claim in a liquidation or bankruptcy of the Borrower, any other Guarantor or any other
Person; or (c) to make demand of the Borrower, any other Guarantor or any other Person or to enforce or seek to enforce or realize
upon any collateral security held by the Lenders or the Agent which may secure any of the Obligations. In this connection, Guarantor
hereby waives the right of such Guarantor to require any holder of the Obligations to take action against the Borrower as provided
by any Applicable Law of any Governmental Authority.

    		-1-	 

    	 

    

 

Section 3. Guaranty
Absolute. Guarantor guarantees that the Obligations will be paid in accordance with the terms of the documents evidencing the
same, regardless of any Applicable Law now or hereafter in effect in any jurisdiction affecting any of such terms or the rights
of the Agent or the Lenders with respect thereto. The liability of Guarantor under this Guaranty shall be absolute and unconditional
in accordance with its terms and shall remain in full force and effect without regard to, and shall not be released, suspended,
discharged, terminated or otherwise affected by, any circumstance or occurrence whatsoever (other than the full and final payment
and performance of the Obligations), including, without limitation, the following (whether or not such Guarantor consents thereto
or has notice thereof):

(a)       

(i) any change in the
amount, interest rate or due date or other term of any of the Obligations; (ii) any change in the time, place or manner of payment
of all or any portion of the Obligations; (iii) any amendment or waiver of, or consent to the departure from or other indulgence
with respect to, the Loan Agreement, any other Loan Document, or any other document or instrument evidencing or relating to any
Obligations; or (iv) any waiver, renewal, extension, addition, or supplement to, or deletion from, or any other action or inaction
under or in respect of, the Loan Agreement, any of the other Loan Documents, or any other documents, instruments or agreements
relating to the Obligations or any other instrument or agreement referred to therein or evidencing any Obligations or any assignment
or transfer of any of the foregoing;

(b)       

any lack of validity
or enforceability of the Loan Agreement, any of the other Loan Documents, or any other document, instrument or agreement referred
to therein or evidencing any Obligations or any assignment or transfer of any of the foregoing;

(c)       

any furnishing to the
Agent or the Lenders of any security for the Obligations, or any sale, exchange, release or surrender of, or realization on, any
collateral security for the Obligations;

(d)       

any settlement or compromise
of any of the Obligations, any security therefor, or any liability of any other party with respect to the Obligations, or any subordination
of the payment of the Obligations to the payment of any other liability of the Borrower;

(e)       

any bankruptcy, insolvency,
reorganization, composition, adjustment, dissolution, liquidation or other like proceeding relating to any other Guarantor, the
Borrower or any other Person, or any action taken with respect to this Guaranty by any trustee or receiver, or by any court, in
any such proceeding;

(f)       

any nonperfection of
any security interest or other Lien on any of the collateral securing any of the Obligations;

(g)       

any act or failure
to act by the Borrower or any other Person which may adversely affect such Guarantor’s subrogation rights, if any, against
the Borrower to recover payments made under this Guaranty;

(h)       

any application of
sums paid by the Borrower or any other Person with respect to the liabilities of the Borrower to the Agent or the Lenders, regardless
of what liabilities of the Borrower remain unpaid;

(i)       

any defect, limitation
or insufficiency in the borrowing powers of the Borrower or in the exercise thereof; or

(j)       

any other circumstance
which might otherwise constitute a defense available to, or a discharge of, any Guarantor hereunder.

The value of the
consideration received and to be received by each Guarantor is reasonably worth at least as much as the liability and obligation
of each Guarantor incurred or arising under the Loan Documents. Each Guarantor has determined that such liability and obligation
may reasonably be expected to substantially benefit each Guarantor directly or indirectly. Each Guarantor has had full and complete
access to the underlying papers relating to the Loans and all of the Loan Documents, has reviewed them and is fully aware of the
meaning and effect of their contents. Each Guarantor is fully informed of all circumstances which bear upon the risks of executing
this Guaranty and which a diligent inquiry would reveal. Each Guarantor has adequate means to obtain from each other Credit Party
on a continuing basis information concerning such other Credit Party’s financial condition, and is not depending on the Administrative
Agent or the Lenders to provide such information, now or in the future. Each Guarantor agrees that neither the Administrative Agent
nor any of the Lenders shall have any obligation to advise or notify any Guarantor or to provide any Guarantor with any data or
information regarding any other Credit Party.

    		-2-	 

    	 

    

 

Section 4. Action
with Respect to Obligations. The Lenders and the Agent may in accordance with the Loan Agreement, at any time and from time
to time, without the consent of, or notice to, any Guarantor, and without discharging any Guarantor from its obligations hereunder
take any and all actions described in Section 3 and may otherwise: (a) amend, modify, alter or supplement the terms of any
of the Obligations, including, but not limited to, extending or shortening the time of payment of any of the Obligations or the
interest rate that may accrue on any of the Obligations; (b) amend, modify, alter or supplement the Loan Agreement or any other
Loan Document; (c) sell, exchange, release or otherwise deal with all, or any part, of any collateral securing any of the Obligations;
(d) release any Person liable in any manner for the payment or collection of the Obligations; (e) exercise, or refrain from exercising,
any rights against the Borrower or any other Person (including, without limitation, any other Guarantor); and (f) apply any sum,
by whomsoever paid or however realized, to the Obligations in such order as the Lenders or the Agent shall elect in accordance
with the Loan Agreement.

Section 5. Representations
and Warranties. Guarantor hereby makes to the Agent and the Lenders all of the representations and warranties made by the Borrower
with respect to or in any way relating to such Guarantor in the Loan Agreement and the other Loan Documents, as if the same were
set forth herein in full.

Section 6. Covenants.
Guarantor will comply with all covenants which the Borrower is to cause such Guarantor to comply with under the terms of the Loan
Agreement or any other Loan Documents.

Section 7. Waiver.
Guarantor, to the fullest extent permitted by applicable law, hereby waives notice of acceptance hereof or any presentment, demand,
protest or notice of any kind, and any other act or thing, or omission or delay to do any other act or thing, which in any manner
or to any extent might vary the risk of such Guarantor or which otherwise might operate to discharge such Guarantor from its obligations
hereunder.

Section 8. Inability
to Accelerate Loan. If the Agent and/or the Lenders are prevented from demanding or accelerating payment thereof by reason
of any automatic stay or otherwise, the Agent and/or the Lenders shall be entitled to receive from Guarantor, upon demand therefor,
the sums which otherwise would have been due had such demand or acceleration occurred.

Section 9. Reinstatement
of Obligations. Guarantor agrees that this Guaranty shall continue to be effective or be reinstated, as the case may be, with
respect to any Obligations if at any time payment of any such Obligations is rescinded or otherwise must be restored by the Agent
and/or the Lenders upon the bankruptcy or reorganization of the Borrower or any Guarantor or otherwise.

Section 10. Subrogation.
Until the date which is ninety-one (91) days after all of the Obligations shall have been paid in full, any right of subrogation
a Guarantor may have shall be subordinate to the rights of Agent and the Lenders and Guarantor hereby waives any right to enforce
any remedy which the Agent and/or the Lenders now have or may hereafter have against the Borrower, and Guarantor hereby waives
any benefit of, and any right to participate in, any security or collateral given to the Agent and the Lenders to secure payment
or performance of any of the Obligations.

Section 11. Payments
Free and Clear. As and to the extent provided in Sections 4.4(b) and 4.4(c) of the Loan Agreement with respect to payments
by Borrower, all sums payable by Guarantor hereunder shall be made free and clear of and without deduction for any tax or other
charge.

    		-3-	 

    	 

    

 

Section 12. Set-off.
Guarantor hereby grants to Agent, on behalf of the Lenders, a security interest in and lien on all deposits (general or special,
time or demand, provisional or final) at any time held and other obligations at any time owing by Agent to or for the credit or
the account of any Guarantor. In addition to any rights now or hereafter granted under applicable law and not by way of limitation
of any such rights, each Lender is hereby authorized at any time and from time to time, to the fullest extent permitted by law,
to set off and apply in accordance with Section 13 of the Loan Agreement, any and all deposits (general or special, time or demand,
provisional or final but excluding any funds held by the Borrower on behalf of tenants or other third parties) at any time held
and other obligations at any time owing by such Lender to or for the credit or the account of any Guarantor against any of and
all the obligations of such Guarantor now or hereafter existing under this Guaranty held by such Lender then due and payable.

Section 13. Subordination.
Guarantor hereby expressly covenants and agrees for the benefit of the Agent and the Lenders that all obligations and liabilities
of the Borrower or any other Guarantor to such Guarantor of whatever description, including without limitation, all intercompany
receivables of such Guarantor from the Borrower or any other Guarantor (collectively, the “Junior Claims”) shall
be subordinate and junior in right of payment to all Obligations; provided, however, that payment thereof may be made so long as
no Event of Default shall have occurred and be continuing. If an Event of Default shall have occurred and be continuing, then no
Guarantor shall accept any direct or indirect payment (in cash, property, securities by setoff or otherwise) from the Borrower
or any other Guarantor on account of or in any manner in respect of any Junior Claim until all of the Obligations have been indefeasibly
paid in full.

Section 14. Avoidance
Provisions. It is the intent of Guarantor, the Agent and the Lenders that in any Proceeding, such Guarantor’s maximum
obligation hereunder shall equal, but not exceed, the maximum amount which would not otherwise cause the obligations of such Guarantor
hereunder (or any other obligations of such Guarantor to the Agent and the Lenders) to be avoidable or unenforceable against such
Guarantor in such Proceeding as a result of applicable law, including without limitation, (a) Section 548 of the Bankruptcy Code
of 1978, as amended (the “Bankruptcy Code”) and (b) any state fraudulent transfer, fraudulent conveyance or
voidable transaction act or statute applied in such Proceeding, whether by virtue of Section 544 of the Bankruptcy Code or otherwise.
The applicable laws under which the possible avoidance or unenforceability of the obligations of such Guarantor hereunder (or any
other obligations of such Guarantor to the Agent and the Lenders) shall be determined in any such Proceeding are referred to as
the “Avoidance Provisions.” Accordingly, to the extent that the obligations of any Guarantor hereunder would
otherwise be subject to avoidance under the Avoidance Provisions, the maximum Obligations for which such Guarantor shall be liable
hereunder shall be reduced to that amount which, as of the time any of the Obligations are deemed to have been incurred under the
Avoidance Provisions, would not cause the obligations of any Guarantor hereunder (or any other obligations of such Guarantor to
the Agent and the Lenders), to be subject to avoidance under the Avoidance Provisions. This Section is intended solely to preserve
the rights of the Agent and the Lenders hereunder to the maximum extent that would not cause the obligations of any Guarantor hereunder
to be subject to avoidance under the Avoidance Provisions, and no Guarantor nor any other Person shall have any right or claim
under this Section as against the Agent and the Lenders that would not otherwise be available to such Person under the Avoidance
Provisions.

Section 15. Information.
Guarantor assumes all responsibility for being and keeping itself informed of the financial condition of the Borrower, of the other
Guarantors and of all other circumstances bearing upon the risk of nonpayment of any of the Obligations and the nature, scope and
extent of the risks that such Guarantor assumes and incurs hereunder, and agrees that none of the Agent or any Lender shall have
any duty whatsoever to advise any Guarantor of information regarding such circumstances or risks.

Section 16. Governing
Law. THIS GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

Section 17. Jurisdiction;
Venue; JURY WAIVER.

(a)       

Each party hereto
hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the state and
federal courts in Boston, Massachusetts and in New York, New York, and any appellate court from any thereof, in any action or proceeding
arising out of or relating to this Guaranty or any other Loan Document, or for recognition or enforcement of any judgment, and
each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding
may be heard and determined in such State or, to the extent permitted by law, in such Federal court. Each of the parties hereto
agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by
suit on the judgment or in any other manner provided by law. Nothing in this Guaranty shall affect any right that the Agent or
any Lender may otherwise have to bring any action or proceeding relating to this Guaranty or any other Loan Document against the
Guarantor or its properties in the courts of any jurisdiction.

    		-4-	 

    	 

    

 

(b)       

Each party hereto
hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection which
it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Guaranty
or any other Loan Document in any court referred to in paragraph (a) of this Section. Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding
in any such court.

(c)       

WAIVER OF
JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS GUARANTY, ANY OTHER LOAN DOCUMENT
OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES
THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO
HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

Section 18. Loan
Accounts. The Agent may maintain books and accounts setting forth the amounts of principal, interest and other sums paid and
payable with respect to the Obligations, and in the case of any dispute relating to any of the outstanding amount, payment or receipt
of Obligation or otherwise, the entries in such account shall be presumptively binding upon Guarantor as to the outstanding amount
of such Obligations and the amounts paid and payable with respect thereto absent manifest error. The failure of the Agent to maintain
such books and accounts shall not in any way relieve or discharge any Guarantor of any of its obligations hereunder.

Section 19. Waiver
of Remedies. No delay or failure on the part of the Agent or the Lenders in the exercise of any right or remedy it may have
against any Guarantor hereunder or otherwise shall operate as a waiver thereof, and no single or partial exercise by the Agent
or the Lenders of any such right or remedy shall preclude other or further exercise thereof or the exercise of any other such right
or remedy.

Section 20. Successors
and Assigns. Each reference herein to the Agent or the Lenders shall be deemed to include such Person’s respective successors
and assigns (including, but not limited to, any holder of the Obligations) in whose favor the provisions of this Guaranty also
shall inure, and each reference herein to any Guarantor shall be deemed to include the Guarantor’s successors and assigns,
upon whom this Guaranty also shall be binding. The Lenders and the Agent may, in accordance with the applicable provisions of the
Loan Agreement, assign, transfer or sell any Obligation, or grant or sell participation in any Obligations, to any Person or entity
without the consent of, or notice to, any Guarantor and without releasing, discharging or modifying such Guarantor’s obligations
hereunder. Guarantor hereby consents to the delivery by the Agent or any Lender to any assignee, transferee or participant of any
financial or other information regarding the Borrower or any Guarantor. Guarantor may not assign or transfer its obligations hereunder
to any Person.

Section 21. Amendments.
This Guaranty may not be amended except as provided in the Loan Agreement.

Section 22. Payments.
All payments made by any Guarantor pursuant to this Guaranty shall be made in Dollars, in immediately available funds to the Agent
at the place and time provided for in the Loan Agreement on the date three (3) Business Days after written demand therefor to such
Guarantor by the Agent.

Section 23. Notices.
All notices, requests and other communications hereunder shall be in writing and shall be given as provided in the Loan Agreement.
Guarantor’s address for notice is set forth below its signature hereto.

    		-5-	 

    	 

    

 

Section 24. Severability.
In case any provision of this Guaranty shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

Section 25. Headings.
Section headings used in this Guaranty are for convenience only and shall not affect the construction of this Guaranty.

Section 26. Definitions.
(a) For the purposes of this Guaranty:

“Proceeding”
means any of the following: (i) a voluntary or involuntary case concerning any Guarantor shall be commenced under the Bankruptcy
Code or any other applicable bankruptcy laws; (ii) a custodian (as defined in the Bankruptcy Code or any other applicable bankruptcy
laws) is appointed for, or takes charge of, all or any substantial part of the property of any Guarantor; (iii) any other proceeding
under any applicable law, domestic or foreign, relating to bankruptcy, insolvency, reorganization, winding-up or composition for
adjustment of debts, whether now or hereafter in effect, is commenced relating to any Guarantor; (iv) any Guarantor is adjudicated
insolvent or bankrupt; (v) any order of relief or other order approving any such case or proceeding is entered by a court of competent
jurisdiction; (vi) any Guarantor makes a general assignment for the benefit of creditors; (vii) any Guarantor shall call a meeting
of its creditors with a view to arranging a composition or adjustment of its debts.

(b)       

Terms not otherwise
defined herein are used herein with the respective meanings given them in the Loan Agreement.

Section 27. JOINT
AND SEVERAL OBLIGATIONS. THE OBLIGATIONS OF THE GUARANTORS HEREUNDER AND UNDER OTHER LOAN DOCUMENTS SHALL BE JOINT AND SEVERAL,
AND ACCORDINGLY, GUARANTOR (BUT NOT ITS LIMITED PARTNERS, SHAREHOLDERS OR MEMBERS) CONFIRMS THAT IT (BUT NOT ITS LIMITED PARTNERS,
SHAREHOLDERS OR MEMBERS) IS LIABLE FOR THE FULL AMOUNT OF THE OBLIGATIONS AND ALL OF THE OBLIGATIONS AND UNDER OTHER LOAN DOCUMENTS.

[Remainder of Page
Intentionally Left Blank]

    		-6-	 

    	 

    

 

IN WITNESS WHEREOF,
Guarantor has duly executed and delivered this Guaranty as of the date and year first written above.

MOODY
NATIONAL REIT II, INC.,

a Maryland corporation

	By:  /s/ Brett C. Moody	 
	Name:	Brett C. Moody	 
	Title:	President	 

 

MN REIT II TRS, INC.,

a Delaware corporation

	By:  /s/ Brett C. Moody	 
	Name: 	Brett C. Moody	 
	Title:	President	 

 

MOODY NATIONAL 1 POLITO LYNDHURST HOLDING, LLC,

MOODY NATIONAL INTERNATIONAL-FORT WORTH HOLDING,
LLC,

MN LYNDHURST VENTURE, LLC,

MN FORT WORTH VENTURE, LLC,

each a Delaware limited liability company

	By:  /s/ Brett C. Moody	 
	Name: 	Brett C. Moody	 
	Title: 	President	 

 

Address for Notices:

 

	
        c/o Moody National Companies

        6363 Woodway Drive, Suite 110

        Houston, Texas 77057

        Attention: Brett C. Moody, CEO

        Attention: Mary Smith, General Counsel

         
	 
	With copies to:	 
	 	 
	
        Moody National Companies

        6363 Woodway Drive, Suite 110

        Houston, Texas 77057

        Attention: Mary Smith, Esquire
	
        Gresham Savage Nolan & Tilden, PC

        550 West C Street, Suite 1810

        San Diego, California 92101

        Attention: Jerome A. Grossman, Esquire

 

 

 

[Signature page to Guaranty]

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