Document:

Moody National REIT, I Inc. POS AM

EXHIBIT 10.110

 

Loan No: 31-0926091

 

 

LOAN AGREEMENT

 

 

 

Dated as of November 19, 2014

 

 

 

Between

 

MOODY NATIONAL RESEARCH-AUSTIN HOLDING, LLC,

as Borrower

 

 

and

 

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Lender

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	 	 	Page
	 	 	 	 
	ARTICLE 1. DEFINITIONS; PRINCIPLES OF CONSTRUCTION	 	1
	 	 	 	 
	Section 1.1	Definitions.	 	1
	 	 	 	 
	Section 1.2	Principles of Construction.	 	18
	 	 	 	 
	ARTICLE 2. GENERAL TERMS	 	18
	 	 	 	 
	Section 2.1	The Loan.	 	18
	 	 	 	 
	Section 2.2	Disbursement to Borrower.	 	18
	 	 	 	 
	Section 2.3	The Note and the other Loan Documents.	 	18
	 	 	 	 
	Section 2.4	Use of Proceeds.	 	18
	 	 	 	 
	Section 2.5	Interest Rate.	 	18
	 	 	 	 
	Section 2.6	Loan Payments.	 	19
	 	 	 	 
	Section 2.7	Prepayments.	 	20
	 	 	 	 
	Section 2.8	Defeasance.	 	21
	 	 	 	 
	ARTICLE 3. REPRESENTATIONS AND WARRANTIES	 	25
	 	 	 	 
	Section 3.1	Legal Status and Authority.	 	25
	 	 	 	 
	Section 3.2	Validity of Documents.	 	25
	 	 	 	 
	Section 3.3	Litigation.	 	26
	 	 	 	 
	Section 3.4	Agreements.	 	26
	 	 	 	 
	Section 3.5	Financial Condition.	 	27
	 	 	 	 
	Section 3.6	Disclosure.	 	27
	 	 	 	 
	Section 3.7	No Plan Assets.	 	27
	 	 	 	 
	Section 3.8	Not a Foreign Person.	 	28
	 	 	 	 
	Section 3.9	Business Purposes.	 	28
	 	 	 	 
	Section 3.10	Borrower Information.	 	28
	 	 	 	 
	Section 3.11	Status of Property.	 	28
	 	 	 	 
	Section 3.12	Financial Information.	 	30
	 	 	 	 
	Section 3.13	Condemnation.	 	30
	 	 	 	 
	Section 3.14	Separate Lots.	 	30
	 	 	 	 
	Section 3.15	Insurance.	 	30
	 	 	 	 
	Section 3.16	Use of Property.	 	30
	 	 	 	 
	Section 3.17	Leases and the Master Lease.	 	31

 

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	Section 3.18	Filing and Recording Taxes.	 	31
	 	 	 	 
	Section 3.19	Management Agreement and Franchise Agreement.	 	32
	 	 	 	 
	Section 3.20	Illegal Activity/Forfeiture.	 	32
	 	 	 	 
	Section 3.21	Taxes.	 	32
	 	 	 	 
	Section 3.22	Permitted Encumbrances.	 	33
	 	 	 	 
	Section 3.23	Material Agreements.	 	33
	 	 	 	 
	Section 3.24	Intentionally Omitted.	 	33
	 	 	 	 
	Section 3.25	Federal Reserve Regulations.	 	33
	 	 	 	 
	Section 3.26	Investment Company Act.	 	33
	 	 	 	 
	Section 3.27	Fraudulent Conveyance.	 	34
	 	 	 	 
	Section 3.28	Embargoed Person.	 	34
	 	 	 	 
	Section 3.29	Patriot Act.	 	35
	 	 	 	 
	Section 3.30	Organizational Chart.	 	35
	 	 	 	 
	Section 3.31	Bank Holding Company.	 	36
	 	 	 	 
	Section 3.32	Intentionally Omitted.	 	36
	 	 	 	 
	Section 3.33	REA Representations.	 	36
	 	 	 	 
	Section 3.34	No Change in Facts or Circumstances.	 	36
	 	 	 	 
	Section 3.35	Perfection of Accounts.	 	36
	 	 	 	 
	Section 3.36	Franchise Agreement	 	37
	 	 	 	 
	Section 3.37	Guarantor and Sponsor Representations.	 	37
	 	 	 	 
	ARTICLE 4. BORROWER COVENANTS	 	37
	 	 	 	 
	Section 4.1	Existence.	 	38
	 	 	 	 
	Section 4.2	Applicable Law.	 	38
	 	 	 	 
	Section 4.3	Maintenance and Use of Property.	 	39
	 	 	 	 
	Section 4.4	Waste.	 	39
	 	 	 	 
	Section 4.5	Taxes and Other Charges.	 	39
	 	 	 	 
	Section 4.6	Litigation.	 	40
	 	 	 	 
	Section 4.7	Access to Property.	 	40
	 	 	 	 
	Section 4.8	Notice of Default.	 	41
	 	 	 	 
	Section 4.9	Cooperate in Legal Proceedings.	 	41
	 	 	 	 
	Section 4.10	Performance by Borrower and Master Lessee.	 	41
	 	 	 	 
	Section 4.11	Awards.	 	41
	 	 	 	 
	Section 4.12	Books and Records.	 	41

 

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	Section 4.13	Estoppel Certificates.	 	44
	 	 	 	 
	Section 4.14	Leases and Rents.	 	45
	 	 	 	 
	Section 4.15	Management Agreement and Franchise Agreement.	 	47
	 	 	 	 
	Section 4.16	Payment for Labor and Materials.	 	49
	 	 	 	 
	Section 4.17	Performance of Other Agreements.	 	50
	 	 	 	 
	Section 4.18	Debt Cancellation.	 	50
	 	 	 	 
	Section 4.19	ERISA.	 	50
	 	 	 	 
	Section 4.20	No Joint Assessment.	 	51
	 	 	 	 
	Section 4.21	Alterations.	 	52
	 	 	 	 
	Section 4.22	REA Covenants.	 	52
	 	 	 	 
	Section 4.23	Material Agreements.	 	53
	 	 	 	 
	Section 4.24	Master Lease.	 	53
	 	 	 	 
	Section 4.25	Matters Concerning Franchisor.	 	54
	 	 	 	 
	ARTICLE 5. ENTITY COVENANTS	 	54
	 	 	 	 
	Section 5.1	Single Purpose Entity/Separateness.	 	54
	 	 	 	 
	Section 5.2	Intentionally Omitted.	 	58
	 	 	 	 
	Section 5.3	Change of Name, Identity or Structure.	 	58
	 	 	 	 
	Section 5.4	Business and Operations.	 	58
	 	 	 	 
	ARTICLE 6. NO SALE OR ENCUMBRANCE	 	58
	 	 	 	 
	Section 6.1	Transfer Definitions.	 	58
	 	 	 	 
	Section 6.2	No Sale/Encumbrance.	 	59
	 	 	 	 
	Section 6.3	Permitted Equity Transfers.	 	60
	 	 	 	 
	Section 6.4	Permitted Property Transfers (Assumptions).	 	62
	 	 	 	 
	Section 6.5	Lender’s Rights.	 	65
	 	 	 	 
	ARTICLE 7. INSURANCE; CASUALTY; CONDEMNATION; RESTORATION	 	65
	 	 	 	 
	Section 7.1	Insurance.	 	65
	 	 	 	 
	Section 7.2	Casualty.	 	72
	 	 	 	 
	Section 7.3	Condemnation.	 	72
	 	 	 	 
	Section 7.4	Restoration.	 	72
	 	 	 	 
	ARTICLE 8. RESERVE FUNDS	 	77
	 	 	 	 
	Section 8.1	Tax Reserve Funds.	 	77
	 	 	 	 
	Section 8.2	Insurance Reserve Funds.	 	77
	 	 	 	 
	Section 8.3	Immediate Repair Funds.	 	78

 

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	Section 8.4	Replacement Reserve Funds.	 	79
	 	 	 	 
	Section 8.5	PIP Reserve.	 	81
	 	 	 	 
	Section 8.6	The Accounts Generally.	 	82
	 	 	 	 
	ARTICLE 9. CASH MANAGEMENT AGREEMENT	 	84
	 	 	 	 
	Section 9.1	Cash Management Agreement.	 	84
	 	 	 	 
	Section 9.2	Cash Flow Sweep.	 	84
	 	 	 	 
	ARTICLE 10. EVENTS OF DEFAULT; REMEDIES	 	85
	 	 	 	 
	Section 10.1	Event of Default.	 	85
	 	 	 	 
	Section 10.2	Remedies.	 	88
	 	 	 	 
	ARTICLE 11. SECONDARY MARKET	 	90
	 	 	 	 
	Section 11.1	Securitization.	 	90
	 	 	 	 
	Section 11.2	Securitization Indemnification.	 	92
	 	 	 	 
	Section 11.3	REMIC Savings Clause.	 	92
	 	 	 	 
	Section 11.4	Servicer.	 	93
	 	 	 	 
	Section 11.5	Rating Agency Costs.	 	93
	 	 	 	 
	Section 11.6	Intentionally Omitted.	 	93
	 	 	 	 
	Section 11.7	Intentionally Omitted.	 	93
	 	 	 	 
	ARTICLE 12. INDEMNIFICATIONS	 	93
	 	 	 	 
	Section 12.1	General Indemnification.	 	93
	 	 	 	 
	Section 12.2	Mortgage and Intangible Tax and Transfer Tax Indemnification.	 	94
	 	 	 	 
	Section 12.3	ERISA Indemnification.	 	94
	 	 	 	 
	Section 12.4	Duty to Defend, Legal Fees and Other Fees and Expenses.	 	94
	 	 	 	 
	Section 12.5	Survival.	 	94
	 	 	 	 
	Section 12.6	Environmental Indemnity.	 	95
	 	 	 	 
	ARTICLE 13. EXCULPATION	 	95
	 	 	 	 
	Section 13.1	Exculpation.	 	95
	 	 	 	 
	Section 13.2	Survival.	 	99
	 	 	 	 
	ARTICLE 14. NOTICES	 	99
	 	 	 	 
	Section 14.1	Notices.	 	99
	 	 	 	 
	ARTICLE 15. FURTHER ASSURANCES	 	100
	 	 	 	 
	Section 15.1	Replacement Documents.	 	100
	 	 	 	 
	Section 15.2	Recording of Security Instrument, etc.	 	100
	 	 	 	 
	Section 15.3	Further Acts, etc.	 	100

 

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	Section 15.4	Changes in Tax, Debt, Credit and Documentary Stamp Laws.	 	101
	 	 	 	 
	ARTICLE 16. WAIVERS	 	102
	 	 	 	 
	Section 16.1	Remedies Cumulative; Waivers.	 	102
	 	 	 	 
	Section 16.2	Modification, Waiver in Writing.	 	102
	 	 	 	 
	Section 16.3	Delay Not a Waiver.	 	102
	 	 	 	 
	Section 16.4	Waiver of Trial by Jury.	 	102
	 	 	 	 
	Section 16.5	Waiver of Notice.	 	103
	 	 	 	 
	Section 16.6	Remedies of Borrower and Master Lessee.	 	103
	 	 	 	 
	Section 16.7	Marshalling and Other Matters.	 	103
	 	 	 	 
	Section 16.8	Waiver of Statute of Limitations.	 	103
	 	 	 	 
	Section 16.9	Waiver of Counterclaim.	 	103
	 	 	 	 
	Section 16.10	Sole Discretion of Lender.	 	104
	 	 	 	 
	ARTICLE 17. MISCELLANEOUS	 	104
	 	 	 	 
	Section 17.1	Survival.	 	104
	 	 	 	 
	Section 17.2	Governing Law.	 	104
	 	 	 	 
	Section 17.3	Headings.	 	104
	 	 	 	 
	Section 17.4	Severability.	 	104
	 	 	 	 
	Section 17.5	Preferences.	 	105
	 	 	 	 
	Section 17.6	Expenses.	 	105
	 	 	 	 
	Section 17.7	Cost of Enforcement.	 	106
	 	 	 	 
	Section 17.8	Exhibits and Schedules Incorporated.	 	106
	 	 	 	 
	Section 17.9	Offsets, Counterclaims and Defenses.	 	106
	 	 	 	 
	Section 17.10	No Joint Venture or Partnership; No Third Party Beneficiaries.	 	107
	 	 	 	 
	Section 17.11	Publicity; Advertising.	 	108
	 	 	 	 
	Section 17.12	Conflict; Construction of Documents; Reliance.	 	108
	 	 	 	 
	Section 17.13	Entire Agreement.	 	109
	 	 	 	 
	Section 17.14	Liability.	 	109
	 	 	 	 
	Section 17.15	Duplicate Originals; Counterparts.	 	109
	 	 	 	 
	Section 17.16	Post-Closing Matters	 	109

 

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Schedules and Exhibits

 

	Exhibit A	Additional Definitions
	Schedule I	Immediate Repair
	Schedule II	Organizational Chart
	Schedule III	Description of REA’s
	Schedule IV	Intentionally Omitted

 

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LOAN AGREEMENT

 

THIS LOAN AGREEMENT,
dated as of November 19, 2014 (as amended, restated, replaced, supplemented or otherwise modified from time to time, this “Agreement”),
between WELLS FARGO BANK, NATIONAL ASSOCIATION, having an address at Wells Fargo Center, 1901 Harrison Street, 2nd Floor,
Oakland, California 94612 (together with its successors and/or assigns, “Lender”) and MOODY NATIONAL RESEARCH-AUSTIN
HOLDING, LLC, a Delaware limited liability company, having an address at 6363 Woodway, Suite 110, Houston, Texas 77057 (together
with its successors and/or assigns, “Borrower”).

 

RECITALS:

 

Borrower desires to obtain
the Loan (defined below) from Lender.

 

Lender is willing to make
the Loan to Borrower, subject to and in accordance with the terms of this Agreement and the other Loan Documents (defined below).

 

In consideration of the
making of the Loan by Lender and the covenants, agreements, representations and warranties set forth in this Agreement, the parties
hereto hereby covenant, agree, represent and warrant as follows:

 

ARTICLE 1.

 

DEFINITIONS; PRINCIPLES OF CONSTRUCTION

 

Section 1.1        Definitions.

 

For all purposes of this
Agreement, except as otherwise expressly required or unless the context clearly indicates a contrary intent:

 

“30/360 Basis”
shall mean on the basis of a 360-day year consisting of 12 months of 30 days each.

 

“Acceptable LLC”
shall mean a limited liability company formed under Delaware or Maryland law which (i) has at least one springing member, which,
upon the dissolution of all of the members or the withdrawal or the disassociation of all of the members from such limited liability
company, shall immediately become the sole member of such limited liability company, and (ii) otherwise meets the Rating Agency
criteria then applicable to such entities.

 

“Accounts”
shall mean the Tax Reserve Account, Insurance Reserve Account, the Immediate Repair Reserve Account, the Replacement Reserve Account,
the PIP Reserve Account, and any other account established by this Agreement or the other Loan Documents.

 

“Act”
shall have the meaning set forth in Section 5.1(d) hereof.

 

“Actual/360 Basis”
shall mean on the basis of a 360-day year and charged on the basis of actual days elapsed for any whole or partial month in which
interest is being calculated.

 

    	 

    	 

    

 

“Affiliate”
shall mean, as to any Person, any other Person that, directly or indirectly, owns more than twenty percent (20%) of, is in Control
of, is Controlled by or is under common ownership or Control with such Person or is a director or officer of such Person or of
an Affiliate of such Person.

 

“Affiliated Franchisor”
shall mean any Franchisor that is an Affiliate of Borrower, any SPE Component Entity, Master Lessee, or Guarantor.

 

“Affiliated Manager”
shall mean any managing agent of the Property in which Borrower, Guarantor, Master Lessee, Sponsor, any SPE Component Entity (if
any) or any Affiliate of such entities has, directly or indirectly, any legal, beneficial or economic interest.

 

“ALTA”
shall mean American Land Title Association, or any successor thereto.

 

“Alteration Threshold”
shall mean an amount equal to 4% of the outstanding principal balance of the Loan.

 

“Annual Budget”
shall have the meaning set forth in Section 4.12(a)(v).

 

“Applicable Law”
shall mean all applicable federal, state, county, municipal and other governmental statutes, laws, rules, orders, regulations,
ordinances, judgments, decrees and injunctions of Governmental Authorities affecting Borrower or the Property or any part thereof,
or the construction, use, alteration or operation thereof, or any part thereof, whether now or hereafter enacted and in force,
including, without limitation, the Americans with Disabilities Act of 1990, and all permits, licenses and authorizations and regulations
relating thereto, and all covenants, agreements, restrictions and encumbrances contained in any instruments, either of record or
known to Borrower or Master Lessee, at any time in force affecting Borrower, Master Lessee, and/or the Property or any part thereof,
including, without limitation, any which may (i) require repairs, modifications or alterations in or to the Property or any part
thereof, or (ii) in any way limit the use and enjoyment thereof.

 

“Assignment of
Management Agreement” shall mean that certain Conditional Assignment of Management Agreement dated as of the date hereof
among Lender and Borrower and consented and agreed to by Master Lessee and Manager, as the same may be amended, restated, replaced,
supplemented or otherwise modified from time to time.

 

“Award”
shall mean any compensation paid by any Governmental Authority in connection with a Condemnation in respect of all or any part
of the Property.

 

“Bankruptcy Action”
shall mean, with respect to any Person, (i) such Person filing a voluntary petition under the Bankruptcy Code; (ii) the
filing of an involuntary petition against such Person under the Bankruptcy Code, or soliciting or causing to be solicited petitioning
creditors for any involuntary petition against such Person; (iii) such Person filing an answer consenting to or otherwise
acquiescing in or joining in any involuntary petition filed against it, by any other Person under the Bankruptcy Code; (iv) such
Person consenting to or acquiescing in or joining in an application for the appointment of a custodian, receiver, trustee, or examiner
for such Person or any portion of the Property; or (v) such Person making an assignment for the benefit of creditors, or admitting,
in writing in any legal proceeding, its insolvency or inability to pay its debts as they become due.

 

    	2

    	 

    

 

“Bankruptcy Code”
shall mean Title 11 of the United States Code entitled “Bankruptcy”, as amended from time to time, and any successor
statute or statutes and all rules and regulations from time to time promulgated thereunder, and any comparable foreign laws relating
to bankruptcy, insolvency or creditors’ rights.

 

“Borrower”
shall have the meaning set forth in the introductory paragraph hereof.

 

“Borrower Party”
shall mean any Person with actual or apparent authority to act, make statements or representations on behalf of or at the direction
of Borrower, SPE Component Entity (if any), Guarantor and/or Sponsor.

 

“Business Day”
shall mean any day other than a Saturday, Sunday or any other day on which commercial banks in the State of California are not
open for business.

 

“Cash Management
Account” shall have the meaning set forth in the Cash Management Agreement.

 

“Cash Management
Agreement” shall mean that certain Cash Management Agreement of even date herewith among Lender, Borrower, Master
Lessee and Manager, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.

 

“Cash Trap Event
Period” shall have the meaning set forth in the Cash Management Agreement.

 

“Casualty”
shall have the meaning set forth in Section 7.2.

 

“Casualty Consultant”
shall have the meaning set forth in Section 7.4 hereof.

 

“Closing Date”
shall mean the date of the funding of the Loan.

 

“Condemnation”
shall mean a temporary or permanent taking by any Governmental Authority as the result, in lieu or in anticipation, of the exercise
of the right of condemnation or eminent domain, of all or any part of the Property, or any interest therein or right accruing thereto,
including any right of access thereto or any change of grade affecting the Property or any part thereof.

 

“Constituent Members”
shall have the meaning set forth in Section 5.2(b) hereof.

 

“Control”
shall mean the power to direct the management and policies of an entity, directly or indirectly, whether through the ownership
of voting securities or other beneficial interests, by contract or otherwise.

 

“Creditors’
Rights Laws” shall mean any existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy,
insolvency, reorganization, conservatorship, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other
relief with respect to its debts or debtors.

 

    	3

    	 

    

 

“DBRS”
shall mean DBRS, Inc.

 

“Debt”
shall mean the outstanding principal amount set forth in, and evidenced by, this Agreement and the Note together with all interest
accrued and unpaid thereon and all other sums due to Lender in respect of the Loan under the Note, this Agreement or the other
Loan Documents, including, without limitation, the payment of all sums advanced and costs and expenses incurred (including, to
the extent payable by Borrower pursuant to the Loan Documents, unpaid or unreimbursed servicing and special servicing fees) by
Lender in connection with the enforcement and/or collection of the Debt or any part thereof.

 

“Debt Service”
shall mean, with respect to any particular period of time, scheduled principal and/or interest payments under the Loan.

 

“Default”
shall mean the occurrence of any event hereunder or under the Note or the other Loan Documents which, but for the giving of notice
or passage of time, or both, would be an Event of Default.

 

“Default Rate”
shall mean, with respect to the Loan, a rate per annum equal to the lesser of (i) the Maximum Legal Rate, or (ii) the sum of (a)
the Interest Rate and (b) five percent (5%).

 

“Defeasance Approval
Item” shall have the meaning set forth in Section 2.8 hereof.

 

“Defeasance Collateral
Account” shall have the meaning set forth in Section 2.8 hereof.

 

“Defeasance Lockout
Release Date” shall mean the earlier to occur of (i) the fourth anniversary of the Closing Date and (ii) the date that
is two (2) years from the “startup day” (within the meaning of Section 860G(a)(9) of the IRS Code) of the REMIC
Trust established in connection with the last Securitization involving any portion of or interest in the Loan.

 

“Defined Benefit
Plan” shall mean a plan, document, agreement, or arrangement currently or previously maintained or sponsored by the Borrower
or by any ERSA Affiliate or to which either the Borrower or ERISA Affiliate currently makes, or previously made, contributions
and which (i) provides or is expected to provide retirement benefits to employees or other workers and (ii) the Borrower could
reasonably be expected to have any liability (including liability attributable from an ERISA Affiliate). A Defined Benefit Plan
shall include any plan that if it were terminated at any time, would result in Borrower or ERISA Affiliate being deemed to be a
“contributing sponsor” (as defined in Section 4001(a)(13) of ERISA) of the terminated plan pursuant to ERISA Section 4069.
A Defined Benefit Plan does not include a Multiemployer Plan.

 

“Disclosure Document”
shall have the meaning set forth in Section 11.2 hereof.

 

    	4

    	 

    

 

“Eligible Account”
shall mean a separate and identifiable account from all other funds held by the holding institution that is either (a) an account
or accounts maintained with a federal or state-chartered depository institution or trust company which complies with the definition
of Eligible Institution or (b) a segregated trust account or accounts maintained with a federal or state chartered depository institution
or trust company acting in its fiduciary capacity which, in the case of a state chartered depository institution or trust company,
is subject to regulations substantially similar to 12 C.F.R. §9.10(b), having in either case a combined capital and surplus
of at least $50,000,000 and subject to supervision or examination by federal and state authority. An Eligible Account will not
be evidenced by a certificate of deposit, passbook or other instrument.

 

“Eligible Institution”
shall mean (a) a depository institution or trust company insured by the Federal Deposit Insurance Corporation, (i) the short term
unsecured debt obligations or commercial paper of which are rated at least “A-1+” (or its equivalent) from each of
the Rating Agencies in the case of accounts in which funds are held for thirty (30) days or less and (ii) the senior unsecured
debt obligations of which are rated at least “A” (or its equivalent) from each of the Rating Agencies in the case of
accounts in which funds are held for more than thirty (30) days or (b) such other depository institution otherwise approved
by the Rating Agencies from time-to-time.

 

“Embargoed Person”
shall have the meaning set forth in Section 3.28 hereof.

 

“Environmental
Indemnity” shall mean that certain Environmental Indemnity Agreement, dated as of the date hereof, executed by Borrower
and Guarantor in connection with the Loan for the benefit of Lender, as the same may be amended, restated, replaced, supplemented
or otherwise modified from time to time.

 

“Environmental
Laws” shall have the meaning set forth in the Environmental Indemnity.

 

“ERISA”
shall mean the Employee Retirement Income Security Act of 1974, as the same may heretofore have been or may hereafter be amended,
restated, replaced or otherwise modified.

 

“ERISA Affiliate”
shall mean all members of a controlled group of corporations and all trades and business (whether or not incorporated) under common
control and all other entities which, together with Borrower, are treated as a single employer under any or all of Sections 414(b),
(c), (m) or (o) of the Code.

 

“Event of Default”
shall have the meaning set forth in Section 10.1 hereof.

 

“Exchange Act”
shall have the meaning set forth in Section 11.2 hereof.

 

“Exchange Act
Filing” shall mean any filing under or pursuant to the Exchange Act in connection with or relating to a Securitization.

 

“Exculpated Parties”
shall have the meaning set forth in Section 13.1 hereof.

 

“FF&E”
shall have the meaning set forth in the definition of Adjusted Net Cash Flow on Exhibit A hereto.

 

    	5

    	 

    

 

“Fitch”
shall mean Fitch, Inc.

 

“Flood Insurance
Acts” shall have the meaning set forth in Section 7.1 hereof.

 

“Franchise Agreement”
shall mean that certain Franchise Agreement, dated as of November 20, 2014, between Master Lessee and Franchisor, as the same
may be amended, supplemented or otherwise modified from time to time in accordance with the terms and provisions of this Agreement,
or, if the context requires, the Replacement Franchise Agreement executed in accordance with the terms and provisions of this Agreement.

 

“Franchise
Guaranty” means, the Guaranty of Franchise Agreement executed by Borrower in favor of Franchisor, dated as of November
20, 2014.

 

“Franchisor”
shall mean Hilton Garden Inns Franchise LLC, a Delaware limited liability company, or, if the context requires, a Qualified
Franchisor that is the franchisor under a Replacement Franchise Agreement.

 

“GAAP”
shall mean generally accepted accounting principles in the United States of America as of the date of the applicable financial
report.

 

“Governmental
Authority” shall mean any court, board, agency, commission, office or other authority of any nature whatsoever for any
governmental unit (foreign, federal, state, county, district, municipal, city or otherwise) whether now or hereafter in existence.

 

“Guarantor”
shall mean Moody National REIT I, Inc., a Maryland corporation.

 

“Guaranty”
shall mean that certain Guaranty of Recourse Obligations executed by Guarantor and dated as of the date hereof.

 

“Hazardous
Substances” shall have the meaning set forth in the Environmental Indemnity.

 

“Hotel Transactions”
shall mean (i) occupancy arrangements for customary hotel transactions in the ordinary course of Borrower’s or Master
Lessee’s business conducted at the 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.

 

“Immediate Repair
Funds” shall have the meaning set forth in Section 8.3 hereof.

 

“Immediate Repair
Reserve Account” shall have the meaning set forth in Section 8.3 hereof.

 

“Immediate Repairs”
shall have the meaning set forth in Section 8.3 hereof.

 

“Improvements”
shall have the meaning set forth in the granting clause of the Security Instrument.

 

    	6

    	 

    

 

“Indebtedness”
shall mean, for any Person, without duplication: (i) all indebtedness of such Person for borrowed money, for amounts drawn under
a letter of credit, or for the deferred purchase price of property for which such Person or its assets is liable, (ii) all unfunded
amounts under a loan agreement, letter of credit, or other credit facility for which such Person would be liable if such amounts
were advanced thereunder, (iii) all amounts required to be paid by such Person as a guaranteed payment to partners or a preferred
or special dividend, including any mandatory redemption of shares or interests, (iv) all indebtedness guaranteed by such Person,
directly or indirectly, (v) all obligations under leases that constitute capital leases for which such Person is liable, and (vi)
all obligations of such Person under interest rate swaps, caps, floors, collars and other interest hedge agreements, in each case
whether such Person is liable contingently or otherwise, as obligor, guarantor or otherwise, or in respect of which obligations
such Person otherwise assures a creditor against loss.

 

“Indemnified Parties”
shall mean (a) Lender, (b) any successor owner or holder of the Loan or participations in the Loan, (c) any Servicer or prior Servicer
of the Loan, (d) any Investor or any prior Investor in any Securities, (e) any trustees, custodians or other fiduciaries who hold
or who have held a full or partial interest in the Loan for the benefit of any Investor or other third party, (f) any receiver
or other fiduciary appointed in a foreclosure or other Creditors Rights Laws proceeding, (g) any officers, directors, shareholders,
partners, members, employees, agents, servants, representatives, contractors, subcontractors, affiliates or subsidiaries of any
and all of the foregoing, and (h) the heirs, legal representatives, successors and assigns of any and all of the foregoing (including,
without limitation, any successors by merger, consolidation or acquisition of all or a substantial portion of the Indemnified Parties’
assets and business) in all cases whether during the term of the Loan or as part of or following a foreclosure of the Loan.

 

“Insurance Premiums”
shall have the meaning set forth in Section 7.1 hereof.

 

“Insurance Reserve
Account” shall have the meaning set forth in Section 8.2 hereof.

 

“Insurance Reserve
Funds” shall have the meaning set forth in Section 8.2 hereof.

 

“Interest Accrual
Period” shall mean the period beginning on the eleventh (11th) day of each calendar month during the term of the Loan
and ending on (but including) the tenth (10th) day of the following calendar month.

 

“Interest Bearing
Reserve Funds” shall mean, collectively, the Immediate Repair Funds, the Replacement Reserve Funds, and the PIP
Reserve Funds.

 

“Interest Rate”
shall mean a rate per annum equal to four and fifty-three hundredths percent (4.53%).

 

“Interest Shortfall”
shall have the meaning set forth in Section 2.7 hereof.

 

“Investor”
shall mean any investor or potential investor in the Loan (or any portion thereof or interest therein) in connection with a Securitization
of the Loan (or any portion thereof or interest therein).

 

    	7

    	 

    

 

“IRS Code”
shall mean the Internal Revenue Code of 1986, as amended from time to time or any successor statute.

 

“Kroll”
shall mean Kroll Bond Rating Agency, Inc.

 

“Land”
shall have the meaning set forth in the Security Instrument.

 

“Lease”
shall mean any and all leases, subleases, rental agreements and other agreements whether or not in writing providing for any use,
enjoyment or occupancy of the Land and/or the Improvements heretofore or hereafter entered into and all extensions, amendments
and modifications thereto, whether before or after the filing by or against Borrower and/or Master Lessee of any petition for relief
under Creditors Rights Laws. Notwithstanding the foregoing, for purposes hereof, neither the Master Lease nor any Hotel Transaction
shall constitute a Lease.

 

“Lender”
shall have the meaning set forth in the introductory paragraph hereof.

 

“Liabilities”
shall have the meaning set forth in Section 11.2 hereof.

 

“Licenses”
shall have the meaning set forth in Section 3.11(a) hereof.

 

“LLC Agreement”
shall have the meaning set forth in Section 5.1(d) hereof.

 

“Loan”
shall mean the loan made by Lender to Borrower pursuant to this Agreement.

 

“Loan Bifurcation”
shall have the meaning set forth in Section 11.1 hereof.

 

“Loan Documents”
shall mean, collectively, this Agreement, the Note, the Security Instrument, the Environmental Indemnity, the Assignment of Management
Agreement, the Cash Management Agreement, the Guaranty, the Subordination of Master Lease, and all other documents pursuant to
which a Person incurs or assumes an obligation to or for the benefit of Lender that are executed and/or delivered in connection
with the Loan.

 

“Losses”
shall mean any and all claims, suits, liabilities (including, without limitation, strict liabilities and any impairment of Lender’s
security for the Loan), actions, proceedings, obligations, debts, damages, losses, costs, expenses, fines, penalties, charges,
fees, judgments, awards, amounts paid in settlement of whatever kind or nature (including but not limited to legal fees and other
costs of defense).

 

“Major Lease”
shall mean (i) any Lease which is with a commercial tenant, (ii) any Lease which contains any option, offer, right of first refusal
or other similar entitlement to acquire all or any portion of the Property, (iii) is with an Affiliate of Borrower, Guarantor or
Manager as Tenant, and/or (iii) any instrument guaranteeing or providing credit support for any Lease meeting the requirements
of (i), (ii) and/or (iii) above.

 

“Management Agreement”
shall mean the management agreement entered into by and between Master Lessee and the current Manager or any replacement management
agreement entered into by and between Borrower or Master Lessee and any Manager in accordance with the terms hereof and of the
other Loan Documents, pursuant to which Manager is to provide management and other services with respect to the Property.

 

    	8

    	 

    

 

“Manager”
shall mean Moody National Hospitality Management, LLC, a Texas limited liability company, or such other entity selected as the
manager of the Property in accordance with the terms of this Agreement or the other Loan Documents.

 

“Master Lease”
means that certain Hotel Lease Agreement dated November 20, 2014 by and between Borrower and Master Lessee, as the same may be
amended, restated, replaced, supplemented or otherwise modified in accordance herewith with the consent of Lender.

 

“Master Lease
Assignment of Rents” shall mean that certain Master Lease Assignment of Leases and Rents and Security Agreement, dated
the date hereof, executed and delivered by Master Lessee in favor of Borrower, as the same may be amended, restated, replaced,
supplemented or otherwise modified from time to time.

 

“Master Lease
Documents” shall mean the Master Lease, the Master Lease Assignment of Rents and the Master Lease Subordination Agreement.

 

“Master Lease
Subordination Agreement” shall mean the Master Lease Subordination and Attornment Agreement executed by Master Lessee
for the benefit of Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time.

 

“Master Lessee”
means Moody National Research-Austin MT, LLC, a Delaware limited liability company.

 

“Material Adverse
Effect” shall mean a material adverse effect on (i) the Property, (ii) the business, profits, management, operations
or condition (financial or otherwise) of Borrower, Guarantor or the Property, (iii) the enforceability, validity, perfection or
priority of the lien of the Security Instrument or the other Loan Documents, (iv) the ability of Borrower to perform its obligations
under the Security Instrument or the other Loan Documents, or (v) the ability of Guarantor to perform its obligations under the
Guaranty.

 

“Material Agreements”
shall mean each contract and agreement relating to the ownership, management, franchise, development, use, operation, leasing,
maintenance, repair or improvement of the Property, other than the Management Agreement, the Franchise Agreement, the Master Lease,
and the Leases, as to which either (i) there is an obligation of Borrower and/or Master Lessee to pay more than $25,000.00 per
annum; or (ii) the term thereof extends beyond one year (unless cancelable on thirty (30) days or less notice without requiring
the payment of termination fees or payments of any kind).

 

“Maturity Date”
shall mean December 11, 2024 or such other date on which the final payment of principal of the Note becomes due and payable as
therein or herein provided, whether at such stated maturity date, by declaration of acceleration, or otherwise.

 

“Maximum Legal
Rate” shall mean the maximum non-usurious interest rate, if any, that at any time or from time to time may be contracted
for, taken, reserved, charged or received on the indebtedness evidenced by the Note and as provided for herein or the other Loan
Documents, under the laws of such state or states whose laws are held by any court of competent jurisdiction to govern the interest
rate provisions of the Loan.

 

    	9

    	 

    

 

“Member”
is defined in Section 5.1(d) hereof.

 

“Memorandum of
Subordination Agreement” shall mean that certain Memorandum of Subordination Agreement, dated on or about the date hereof,
by and between Master Lessee and Lender.

 

“Minimum Disbursement
Amount” shall mean Twenty-Five Thousand and No/100 Dollars ($25,000).

 

“MNOP I”
shall mean Moody National Operating Partnership I, L.P., a Delaware limited partnership.

 

“Monthly Debt
Service Payment Amount” shall mean (i) for the Monthly Payment Date occurring in January, 2015 and for each Monthly
Payment Date occurring thereafter up to and including the Monthly Payment Date occurring in December, 2016, a payment equal to
the amount of interest which has accrued during the preceding Interest Accrual Period computed at the Interest Rate and (ii) for
the Monthly Payment Date occurring in January, 2017 and for each Monthly Payment occurring thereafter, a constant monthly payment
of $96,609.19.

 

“Monthly Insurance
Deposit” shall have the meaning set forth in Section 8.2 hereof.

 

“Monthly Payment
Date” shall mean the eleventh (11th) day of every calendar month occurring during the term of the Loan.

 

“Monthly Tax Deposit”
shall have the meaning set forth in Section 8.1 hereof.

 

“Moody REIT”
shall mean Moody National REIT I, Inc., a Maryland corporation

 

“Moody’s”
shall mean Moody’s Investors Service, Inc.

 

“Morningstar”
shall mean Morningstar Credit Ratings, LLC.

 

“Multiemployer
Plan” shall mean a “multiemployer plan” as defined in Section 3(37) of ERISA or Section 4001(a)(3)
of ERISA, and to which Borrower or any ERISA Affiliate is making, is obligated to make or has made or been obligated to make during
the last six years, contributions on behalf of participants who are or were employed by any of them.

 

“Net Proceeds”
shall mean: (i) the net amount of all insurance proceeds payable as a result of a Casualty to the Property, after deduction of
reasonable costs and expenses (including, but not limited to, reasonable attorneys’ fees), if any, in collecting such insurance
proceeds, or (ii) the net amount of the Award, after deduction of reasonable costs and expenses (including, but not limited to,
reasonable attorneys’ fees), if any, in collecting such Award.

 

“Net Proceeds
Deficiency” shall have the meaning set forth in Section 7.4 hereof.

 

    	10

    	 

    

 

“New Manager”
shall have the meaning set forth in Section 4.15 hereof.

 

“Non-Conforming
Policy” shall have the meaning set forth in Section 7.1 hereof.

 

“Note”
shall mean that certain Promissory Note of even date herewith in the principal amount of $19,000,000.00, made by Borrower in favor
of Lender, as the same may be amended, restated, replaced, extended, renewed, supplemented, severed, split, or otherwise modified
from time to time.

 

“OFAC”
shall have the meaning set forth in Section 3.28 hereof.

 

“Officer’s
Certificate” shall mean a certificate delivered to Lender by Borrower, Master Lessee, or Guarantor, as applicable, which
is signed by Responsible Officer of Borrower, Master Lessee or Guarantor, as applicable.

 

“Open Period Start
Date” shall have the meaning set forth in Section 2.7(a) hereof.

 

“Other Charges”
shall mean all maintenance charges, impositions other than Taxes, and any other charges, vault charges and license fees for the
use of vaults, chutes and similar areas adjoining the Property, now or hereafter levied or assessed or imposed against the Property
or any part thereof.

 

“Patriot Act”
shall have the meaning set forth in Section 3.29 hereof.

 

“Permitted Encumbrances”
shall mean collectively, (a) the lien and security interests created by this Agreement and the other Loan Documents, (b) all liens,
encumbrances and other matters disclosed in the Title Insurance Policy, (c) liens, if any, for Taxes imposed by any Governmental
Authority or for Other Charges not yet due or delinquent or that are being contested in strict accordance with the terms and provisions
of the Loan Documents, (d) mechanics’, materialman’s, and other similar liens on the Property, provided that any such
lien is bonded or discharged within thirty (30) days after Borrower first receives written notice of such lien or which is being
contested in good faith in strict accordance with the terms and provisions of the Loan Documents, (e) Permitted Equipment Leases,
and (f) such other title and survey exceptions as Lender has approved or may approve in writing in Lender’s sole discretion.

 

“Permitted Equipment
Leases” shall mean equipment leases or other similar instruments entered into with respect to the Personal Property;
provided, that, in each case, such equipment leases or similar instruments (i) are entered into on commercially reasonable terms
and conditions in the ordinary course of Borrower’s business and (ii) relate to Personal Property which is (A) used in connection
with the operation and maintenance of the Property in the ordinary course of Borrower’s or Master Lessee’s business
and (B) readily replaceable without material interference or interruption to the operation of the Property.

 

“Permitted Equity
Transfer” shall have the meaning set forth in Section 6.3 hereof.

 

“Permitted Indebtedness”
shall have the meaning set forth in Section 5.1(a)(vii) hereof.

 

“Permitted Property
Transfer” shall have the meaning set forth in Section 6.4 hereof.

 

    	11

    	 

    

 

“Permitted REIT
Transfer” “ shall have the meaning set forth in Section 6.3(III) hereof.

 

“Permitted Transfer”
shall mean (i) a Permitted Equity Transfer, (ii) a Permitted Property Transfer, (iii) a Lease entered into in accordance with the
terms hereof, (iv) any Permitted Encumbrances, and/or (v) any Permitted Equipment Leases.

 

“Person”
shall mean any individual, corporation, partnership, joint venture, limited liability company, estate, trust, unincorporated association,
any federal, state, county or municipal government or any bureau, department or agency thereof and any fiduciary acting in such
capacity on behalf of any of the foregoing.

 

“Personal Property”
shall have the meaning set forth in the granting clause of the Security Instrument.

 

“PIP Requirements”
shall mean any property improvement requirements imposed by Franchisor in connection with the origination and commencement of the
Franchise Agreement.

 

“PIP Reserve Account”
shall have the meaning set forth in Section 8.5(a) hereof.

 

“PIP Reserve Funds”
shall have the meaning set forth in Section 8.5(a) hereof.

 

“PIP Reserve Period”
shall mean the period commencing on the Closing Date and continuing until the Monthly Payment Date following Lender’s receipt
of evidence acceptable to Lender confirming that all PIP Requirements have been completed.

 

“Policies”
shall have the meaning specified in Section 7.1 hereof.

 

“Prohibited Transfer”
shall have the meaning set forth in Section 6.2 hereof.

 

“Property”
shall have the meaning set forth in the Security Instrument.

 

“Provided Information”
shall have the meaning set forth in Section 11.2(b) hereof.

 

“Prudent Lender
Standard” shall, with respect to any matter, be deemed to have been met if the matter in question (i) prior to a Securitization,
is reasonably acceptable to Lender and (ii) after a Securitization, would be acceptable to a prudent lender of securitized commercial
mortgage loans.

 

“Qualified Insurer”
shall have the meaning set forth in Section 7.1 hereof.

 

“Qualified Franchisor”
shall mean (i) Franchisor or (ii) a reputable and experienced franchisor (which may be an Affiliate of Borrower)
which, in the reasonable judgment of Lender, possesses experience in flagging hotel properties similar in location, size, class,
use, operation and value as the Property; provided, that Borrower shall have obtained (a) a Rating Agency Confirmation
from the Rating Agencies and (b) if such Person is an Affiliate of Borrower, a new bankruptcy non-consolidation opinion reasonably
acceptable to Lender and acceptable the Rating Agencies in their sole discretion.

 

    	12

    	 

    

 

“Qualified Manager”
shall have the meaning set forth in the Assignment of Management Agreement.

 

“Qualified Successor
Master Lessee” means a Single-Purpose Entity that is Controlled by the same constituent partners, members, shareholders,
affiliates or sponsors that Control Transferee and is a successor to the Master Lessee under the Master Lease.

 

“Rating Agencies”
shall mean each of S&P, Moody’s, Fitch, DBRS, Kroll and Morningstar, or any successor thereto, or any other nationally-recognized
statistical rating agency which has been approved by Lender, but only to the extent that such Rating Agency has been designated
by Lender, or is anticipated to be designated by Lender, in connection with any Secondary Market Transaction.

 

“Rating Agency
Confirmation” shall mean a written affirmation from each of the Rating Agencies (obtained at Borrower’s sole cost
and expense) that the credit rating of the Securities by such Rating Agency immediately prior to the occurrence of the event with
respect to which such Rating Agency Confirmation is sought will not be qualified, downgraded or withdrawn as a result of the occurrence
of such event, which affirmation may be granted or withheld in such Rating Agency’s sole and absolute discretion. For the
purposes of this Agreement and the other Loan Documents, if any Rating Agency shall waive, decline or refuse to review or otherwise
engage any request for a Rating Agency Confirmation hereunder or under the other Loan Documents (hereinafter, a “RA Consent”),
such RA Consent shall be deemed to eliminate, for such request only, the condition that a Rating Agency Confirmation by such Rating
Agency (only) be obtained for purposes of this Agreement or the other Loan Documents, as applicable; provided, however, if Lender
does not have a separate and independent approval right with respect to such event set forth herein or in the other Loan Documents,
as applicable, then the term “Rating Agency Confirmation” shall be deemed instead to require the approval of
Lender based on its good faith determination. For purposes of clarity, any such waiver, declination or refusal to review or otherwise
engage in any request for a Rating Agency Confirmation hereunder or under the other Loan Documents shall not be deemed a waiver,
declination or refusal to review or otherwise engage in any subsequent request for a Rating Agency Confirmation hereunder or under
the other Loan Documents, and the condition for Rating Agency Confirmation pursuant to this Agreement and the other Loan Documents
for any subsequent request shall apply regardless of any previous waiver, declination or refusal to review or otherwise engage
in such prior request.

 

“REA”
shall mean, individually and/or collectively (as the context may require), each reciprocal easement, covenant, condition and restriction
agreement or similar agreement affecting the Property as more particularly described on Schedule III hereto and any future reciprocal
easement or similar agreement affecting the Property entered into in accordance with the applicable terms and conditions hereof.

 

“Registration
Statement” shall have the meaning set forth in Section 11.2 hereof.

 

“Regulation AB”
shall mean Regulation AB under the Securities Act and the Exchange Act, as such Regulation may be amended from time to time.

 

    	13

    	 

    

 

“REMIC Requirements”
shall mean any applicable federal income tax requirements relating to the continued qualification of any REMIC Trust (including,
without limitation, the continued treatment of the Loan as a “qualified mortgage” in the hands of the REMIC Trust)
as such under the IRS Code, the non-imposition of any tax on such REMIC Trust under the IRS Code (including, without limitation,
the taxes on “prohibited transactions” and “contributions”), and any other constraints, rules or other
regulations or requirements relating to the servicing, modification or other similar matters with respect to the Loan (or any portion
thereof or interest therein) that may exist in, or be promulgated administratively under, the IRS Code.

 

“REMIC Trust”
shall mean a “real estate mortgage investment conduit” within the meaning of Section 860D of the IRS Code that
holds any interest in all or any portion of the Loan (including, without limitation, the Note).

 

“Rent Loss Proceeds”
shall have the meaning set forth in Section 7.1 hereof.

 

“Rents”
shall have the meaning set forth in the Security Instrument.

 

“Replacement Franchise
Agreement” shall mean, collectively, (i)(a) a franchise, trademark and license agreement with a Qualified
Franchisor substantially in the same form and substance as the Franchise Agreement, or (b) a franchise, trademark and license
agreement with a Qualified Franchisor, which franchise, trademark and license agreement shall be in form and substance reasonably
acceptable to Lender; provided, that, with respect to this clause (b), Lender, at its option, may require that Borrower
shall have obtained a Rating Agency Confirmation from the Rating Agencies, and (ii) a comfort letter or similar agreement (in form
and substance reasonably acceptable to Lender), executed and delivered to Lender by such Qualified Franchisor and Borrower and/or
Master Lessee (as applicable).

 

“Replacement Reserve
Account” shall have the meaning set forth in Section 8.4 hereof.

 

“Replacement Reserve
Funds” shall have the meaning set forth in Section 8.4 hereof.

 

“Replacement Reserve
Monthly Deposit” shall mean, with respect to any calendar month, an amount equal to the greater of (1) four percent (4%)
of Underwritten Revenue for the immediately preceding calendar month, and (2) the aggregate amount of FF&E expenditures, if
any, required to be reserved under the Management Agreement and the Franchise Agreement.

 

“Replacements”
for any period shall mean amounts expended for FF&E expenditures, replacements and/or alterations to the Property and required
to be capitalized according to the Uniform System of Accounts and reconciled in accordance with GAAP.

 

“Reporting Company”
shall mean a Person that is required to file, with respect to the equity interests of such company, periodic reports with the Securities
and Exchange Commission under the Exchange Act.

 

“Reporting Failure”
shall have the meaning set forth in Section 4.12 hereof.

 

“Required Financial
Item” shall have the meaning set forth in Section 4.12 hereof.

 

    	14

    	 

    

 

“Reserve Funds”
shall mean the Tax Reserve Funds, the Insurance Reserve Funds, the Immediate Repair Funds, the Replacement Reserve Funds, the PIP
Reserve Funds, and any other escrow funds established by this Agreement or the other Loan Documents.

 

“Responsible Officer”
shall mean with respect to a Person, the chairman of the board, president, chief operating officer, chief financial officer, treasurer
or vice president of such Person or such other similar officer of such Person (or in the case of a limited partnership, of its
general partner) reasonably acceptable to Lender and appropriately authorized by the applicable Person in a manner reasonably acceptable
to Lender.

 

“Restoration”
shall have the meaning set forth in Section 7.2 hereof.

 

“Restoration Retainage”
shall have the meaning set forth in Section 7.4 hereof.

 

“Restoration Threshold”
shall mean an amount equal to 4% of the outstanding principal balance of the Loan.

 

“Restricted Party”
shall have the meaning set forth in Section 6.1 hereof.

 

“Sale or Pledge”
shall have the meaning set forth in Section 6.1 hereof.

 

“Scheduled Defeasance
Payments” shall mean scheduled payments of interest and principal under the Note for all Monthly Payment Dates occurring
after the Total Defeasance Date and up to and including the Open Period Start Date (including any other amounts due under the Loan
Documents on any such Monthly Payment Date and including the outstanding principal balance on the Note as of the Open Period Start
Date).

 

“Secondary Market
Transaction” shall have the meaning set forth in Section 11.1 hereof.

 

“Securities”
shall have the meaning set forth in Section 11.1 hereof.

 

“Securities Act”
shall have the meaning set forth in Section 11.2 hereof.

 

“Securitization”
shall have the meaning set forth in Section 11.1 hereof.

 

“Security Agreement”
shall mean a security agreement in form and substance that would be satisfactory to a prudent lender pursuant to which Borrower
grants Lender a perfected, first priority security interest in the Defeasance Collateral Account and the Total Defeasance Collateral.

 

“Security Instrument”
shall mean that certain first priority Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing dated
the date hereof, executed and delivered by Borrower as security for the Loan and encumbering the Property, as the same may be amended,
restated, replaced, supplemented or otherwise modified from time to time.

 

“Servicer”
shall have the meaning set forth in Section 11.4 hereof.

 

    	15

    	 

    

 

“Severed Loan
Documents” shall have the meaning set forth in Article 10.

 

“Single Purpose
Entity” shall mean an entity which satisfies all of the requirements of Section 5.1 hereof and whose structure and
organizational and governing documents are otherwise in form and substance reasonably acceptable to Lender and acceptable to the
Rating Agencies.

 

“SPE Component
Entity” shall have the meaning set forth in Section 5.1(c) hereof.

 

“Special Member”
shall have the meaning set forth in Section 5.1(d) hereof.

 

“Sponsor”
shall mean Brett C. Moody, an individual.

 

“S&P”
shall mean Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc.

 

“State”
shall mean the state in which the Property or any part thereof is located.

 

“Subordination
of Master Lease” means that certain Master Lease Subordination and Attornment Agreement executed by Master Lessee and
Lender as of the Closing Date, as the same may from time to time be amended, restated, replaced, supplemented or otherwise modified
in accordance herewith.

 

“Successor Borrower”
shall have the meaning set forth in Section 2.8 hereof.

 

“Tax Reserve Account”
shall have the meaning set forth in Section 8.1 hereof.

 

“Tax Reserve Funds”
shall have the meaning set forth in Section 8.1 hereof.

 

“Taxes”
shall mean all taxes, assessments, water rates, sewer rents, sales tax, room tax, business improvement district or other similar
assessments and other governmental impositions, now or hereafter levied or assessed or imposed against the Property or any part
thereof.

 

“TC Cap”
shall have the meaning set forth in Section 7.1(j) hereof.

 

“Tenant”
shall mean any Person leasing, subleasing or otherwise occupying any portion of the Property under a Lease.

 

“Title Insurance
Policy” shall mean that certain ALTA mortgagee title insurance policy issued with respect to the Property and insuring
the lien of the Security Instrument.

 

“Total Defeasance
Collateral” shall mean U.S. Obligations, which provide payments (i) on or prior to, but as close as possible to,
the Business Day immediately preceding all Monthly Payment Dates and other scheduled payment dates, if any, under the Note after
the Total Defeasance Date and up to and including the Open Period Start Date, and (ii) in amounts equal to or greater than the
Scheduled Defeasance Payments relating to such Monthly Payment Dates and other scheduled payment dates.

 

“Total Defeasance
Date” shall have the meaning set forth in Section 2.8 hereof.

 

    	16

    	 

    

 

“Total Defeasance
Event” shall have the meaning set forth in Section 2.8 hereof.

 

“UCC”
or “Uniform Commercial Code” shall mean the Uniform Commercial Code as in effect in the State.

 

“Underwriter Group”
shall have the meaning set forth in Section 11.2 hereof.

 

“Uniform System
of Accounts” shall mean the most recent edition of the Uniform System of Accounts for Hotels, as adopted by the
American Hotel and Motel Association.

 

“Updated Information”
shall have the meaning set forth in Section 11.1 hereof.

 

“U.S. Obligations”
shall mean “government securities” as defined in Section 2(a)(16) of the Investment Company Act of 1940 and within
the meaning of Treasury Regulation Section 1.860G-2(a)(8); provided, that, (i) such “government securities” are
not subject to prepayment, call or early redemption, (ii) to the extent that any REMIC Requirements require a revised and/or alternate
definition of “government securities” in connection with any defeasance hereunder, the foregoing shall be deemed amended
in a manner commensurate therewith and (iii) the aforesaid laws and regulations shall be deemed to refer to the same as may
be and/or may hereafter be amended, restated, replaced or otherwise modified.

 

“Wells Fargo”
shall mean Wells Fargo Bank, National Association.

 

“Wells Group”
shall have the meaning set forth in Section 11.2 hereof.

 

“Work Charge”
shall have the meaning set forth in Section 4.16(a) hereof.

 

“Yield Maintenance
Premium” shall mean an amount equal to the greater of the following two amounts: (a) an amount equal to 2% of the amount
prepaid; or (b) an amount equal to (i) the amount, if any, by which the sum of the present values as of the prepayment date of
all unpaid principal and interest payments required hereunder, calculated by discounting such payments from the respective dates
each such payment was due hereunder (or, with respect to the payment required on the Open Period Start Date (assuming the outstanding
principal balance of the Loan is due on the Open Period Start Date), from the Open Period Start Date) back to the prepayment date
at a discount rate equal to the Periodic Treasury Yield (defined below) exceeds the outstanding principal balance of the Loan as
of the prepayment date, multiplied by (ii) a fraction whose numerator is the amount prepaid and whose denominator is the outstanding
principal balance of the Loan as of the prepayment date. For purposes of the foregoing, “Periodic Treasury Yield”
shall mean (y) the annual yield to maturity of the actively traded non-callable United States Treasury fixed interest rate security
(other than any such security which can be surrendered at the option of the holder at face value in payment of federal estate tax
or which was issued at a substantial discount) that has a maturity closest to (whether before, on or after) the Open Period Start
Date (or if two or more such securities have maturity dates equally close to the Open Period Start Date, the average annual yield
to maturity of all such securities), as reported in The Wall Street Journal or other authoritative publication or news retrieval
service on the fifth Business Day preceding the prepayment date, divided by (z) 12. Lender’s calculation of the Yield Maintenance
Premium, and all component calculations, shall be conclusive and binding on Borrower absent demonstrable error.

 

    	17

    	 

    

 

Section 1.2        Principles
of Construction.

 

All references to sections,
exhibits and schedules are to sections, exhibits and schedules in or to this Agreement unless otherwise specified. All uses of
the word “including” shall mean “including, without limitation” unless the context shall indicate otherwise.
Unless otherwise specified, the words “hereof,” “herein” and “hereunder” and words of similar
import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement.
Unless otherwise specified, all meanings attributed to defined terms herein shall be equally applicable to both the singular and
plural forms of the terms so defined.

 

ARTICLE
2.

GENERAL TERMS

 

Section 2.1        The
Loan.

 

Subject to and upon the
terms and conditions set forth herein, Lender hereby agrees to make and Borrower hereby agrees to accept the Loan on the Closing
Date.

 

Section 2.2        Disbursement
to Borrower.

 

Borrower may request and
receive only one borrowing hereunder in respect of the Loan and any amount borrowed and repaid hereunder in respect of the Loan
may not be re-borrowed.

 

Section 2.3        The
Note and the other Loan Documents.

 

The Loan shall be evidenced
by the Note and this Agreement and secured by this Agreement, the Security Instrument and the other Loan Documents.

 

Section 2.4        Use
of Proceeds.

 

Borrower shall use the
proceeds of the Loan to (i) acquire the Property and/or pay and discharge any existing loans relating to the Property, (ii) pay
all past-due Taxes, Insurance Premiums and Other Charges, if any, in respect of the Property, (iii) make initial deposits of the
Reserve Funds, (iv) pay costs and expenses incurred in connection with the closing of the Loan, and (v) to the extent any proceeds
remain after satisfying clauses (i) through (iv) above, for such lawful purpose as Borrower shall designate.

 

Section 2.5        Interest
Rate.

 

(a)        Generally.
Interest on the outstanding principal balance of the Loan shall accrue from the Closing Date up to but excluding the Maturity Date
at the Interest Rate.

 

(b)        Default
Rate. In the event that, and for so long as, any Event of Default shall have occurred and be continuing, the outstanding principal
balance of the Loan and, to the extent permitted by Applicable Law, overdue interest in respect of the Loan, shall accrue interest
at the Default Rate, calculated from the date of such Event of Default without regard to any grace or cure periods contained herein.

 

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(c)        Interest
Calculation. Interest on the outstanding principal balance of the Loan shall accrue at the Interest Rate calculated on an Actual/360
Basis. Borrower acknowledges that interest calculated on an Actual/360 Basis exceeds interest calculated on a 30/360 Basis and,
therefore: (i) a greater portion of each monthly installment of principal (if applicable) and interest will be applied to interest
using the Actual/360 Basis than would be the case if interest accrued on a 30/360 Basis and (ii) the unpaid principal balance of
the Loan on the Maturity Date will be greater using the Actual/360 Basis than would be the case if interest accrued on a 30/360
Basis.

 

(d)        Usury
Savings. This Agreement and the other Loan Documents are subject to the express condition that at no time shall Borrower be
required to pay interest on the principal balance of the Loan at a rate which could subject Lender to either civil or criminal
liability as a result of being in excess of the Maximum Legal Rate. If by the terms of this Agreement or the other Loan Documents,
Borrower is at any time required or obligated to pay interest on the principal balance due hereunder at a rate in excess of the
Maximum Legal Rate, the Interest Rate or the Default Rate, as the case may be, shall be deemed to be immediately reduced to the
Maximum Legal Rate and all previous payments in excess of the Maximum Legal Rate shall be deemed to have been applied toward payment
of the principal of the Loan and not on account of the interest due hereunder or, if the Loan has been repaid in full, shall promptly
be returned to Borrower. All sums paid or agreed to be paid to Lender for the use or forbearance of the sums due under the Loan,
shall, to the extent permitted by Applicable Law, be amortized, prorated, allocated, and spread throughout the full stated term
of the Loan until payment in full so that the rate or amount of interest on account of the Loan does not exceed the Maximum Legal
Rate from time to time in effect and applicable to the Loan for so long as the Loan is outstanding.

 

Section 2.6        Loan
Payments.

 

(a)        Payment
Before Maturity. Borrower shall make a payment to Lender of interest only on the Closing Date for the period from the Closing
Date through (but excluding) the eleventh (11th) day of either (i) the month in which the Closing Date occurs (if such Closing
Date is on or after the first (1st) day of such month, but prior to the eleventh (11th) day of such month) or (ii) if the Closing
Date is after the eleventh (11th) day of the then current calendar month, the calendar month following the calendar month in which
the Closing Date occurs (unless the Closing Date is the eleventh (11th) day of a calendar month, in which case no such separate
payment of interest shall be due). Borrower shall make a payment to Lender of principal (if applicable) and interest in the amount
of the Monthly Debt Service Payment Amount on the Monthly Payment Date occurring in January, 2015 and on each Monthly Payment Date
thereafter to and including the Maturity Date. Each payment shall be applied first to accrued and unpaid interest and the balance,
if any, to principal. The Monthly Debt Service Payment Amount required hereunder (where such Monthly Debt Service Payment includes
both principal and interest) is based upon a thirty (30) year amortization schedule.

 

(b)        Intentionally
Omitted.

 

    	19

    	 

    

 

(c)        Payment
on Maturity. Borrower shall pay to Lender on the Maturity Date the outstanding principal balance of the Loan, all accrued and
unpaid interest and all other amounts due hereunder and under the Note, the Security Instrument and the other Loan Documents.

 

(d)        Late
Payment Charge. If any principal, interest or any other sum due under the Loan Documents, other than the payment of principal
due on the Maturity Date, is not paid by Borrower within five (5) days when due, Borrower shall pay to Lender upon demand an amount
equal to the lesser of five percent (5%) of such unpaid sum or the maximum amount permitted by Applicable Law in order to defray
the expense incurred by Lender in handling and processing such delinquent payment and to compensate Lender for the loss of the
use of such delinquent payment. Any such amount shall be secured by the Security Instrument and the other Loan Documents.

 

(e)        Method
and Place of Payment.

 

(i)        Except as
otherwise specifically provided herein, all payments and prepayments under this Agreement and the Note shall be made to Lender
not later than 10:00 A.M., California time, on the date when due and shall be made in lawful money of the United States of America
in immediately available funds at Lender’s office, and any funds received by Lender after such time shall, for all purposes
hereof, be deemed to have been paid on the next succeeding Business Day.

 

(ii)       Whenever
any payment to be made hereunder or under any other Loan Document shall be stated to be due on a day which is not a Business Day,
the due date thereof shall be deemed to be the immediately succeeding Business Day.

 

(iii)      All payments
required to be made by Borrower hereunder or under the Note or the other Loan Documents shall be made irrespective of, and without
deduction for, any setoff, claim or counterclaim and shall be made irrespective of any defense thereto.

 

Section 2.7        Prepayments.

 

(a)        Except
as otherwise provided herein, Borrower shall not have the right to prepay the Loan in whole or in part. On and after the Monthly
Payment Date occurring three (3) months prior to the Maturity Date (the “Open Period Start Date”), Borrower
may, subject to Section 2.7(c) hereof, at its option and upon thirty (30) days prior notice to Lender (or such shorter period of
time as may be permitted by Lender in its sole discretion), prepay the Debt in whole on any date without payment of the Yield Maintenance
Premium. Any prepayment received by Lender on a date other than a Monthly Payment Date shall include interest which would have
accrued thereon to the next Monthly Payment Date (such amounts, the “Interest Shortfall”).

 

    	20

    	 

    

 

(b)        Mandatory
Prepayments. On each date on which Lender actually receives a distribution of Net Proceeds, and if such Net Proceeds are not
made available to Borrower for Restoration, Borrower shall apply one hundred percent (100%) of such Net Proceeds to the prepayment
of the outstanding principal balance of the Note together with any applicable Interest Shortfall (except that Awards in respect
of any temporary taking of the Property, unless an Event of Default shall have occurred and be continuing, shall be applied as
if they constituted Rents). No Yield Maintenance Premium shall be due in connection with any prepayment made pursuant to this Section 2.7(b).
If Net Proceeds are so applied to payment of the Debt rather than made available to Borrower for Restoration, then, provided no
Event of Default exists, Borrower shall have a one-time right to prepay the Debt in full only, without payment of the Yield Maintenance
Premium or any other premium or penalty, provided that: (a) the amount of Net Proceeds so applied is not less than fifty-one percent
(51%) of the outstanding principal amount of the Debt, (b) Borrower gives written notice of such election to prepay the Debt in
full not later than three (3) months after the date which is the earlier of (i) the date Lender notifies Borrower that the Net
Proceeds shall be applied to the Debt; and (ii) the date Lender applies the Net Proceeds to the Debt; (c) the Debt is prepaid in
full not later than three (3) months after Borrower gives Lender such notice; and (d) such prepayment is made on a Payment Date
or if such prepayment is not made on a Monthly Payment Date, then Borrower shall pay to Lender the Interest Shortfall.

 

(c)        Prepayments
During Default. If concurrently with or after and during the continuation of an Event of Default, payment of all or any part
of the principal of the Loan is tendered by Borrower, a purchaser at foreclosure or any other Person, such tender shall be deemed
an attempt to circumvent the prohibition against prepayment prior to the Open Period Start Date as set forth herein and Borrower,
such purchaser at foreclosure or other Person shall pay (i) the Yield Maintenance Premium and (ii) Interest Shortfall, in addition
to the outstanding principal balance, all accrued and unpaid interest and other amounts payable under the Loan Documents. Borrower
acknowledges that (i) a prepayment will cause damage to Lender; (ii) the Yield Maintenance Premium is intended to compensate Lender
for the loss of its investment and the expense incurred and time and effort associated with making the Loan, which will not be
fully repaid if the Loan is prepaid; (iii) it will be extremely difficult and impractical to ascertain the extent of Lender’s
damages caused by a prepayment after an acceleration or any other prepayment not permitted by the Loan Documents; and (iv) the
Yield Maintenance Premium represents Lender’s and Borrower’s reasonable estimate of Lender’s damages from the
prepayment and is not a penalty.

 

(d)        Release
of Lien. Except as expressly set forth in this Article 2, no repayment, prepayment or defeasance of all or any portion of the
Note shall cause, give rise to a right to require, or otherwise result in, the release of the lien of the Security Instrument.

 

Section 2.8        Defeasance.

 

(a)        Provided
no Event of Default shall have occurred and remain uncured, Borrower shall have the right at any time after the Defeasance Lockout
Release Date and prior to the Open Period Start Date to voluntarily defease the entire Loan and obtain a release of the lien of
the Security Instrument by providing Lender with the Total Defeasance Collateral (hereinafter, a “Total Defeasance Event”),
subject to the satisfaction of the following conditions precedent:

 

    	21

    	 

    

 

(i)        Borrower
shall provide Lender not less than sixty (60) days’ notice (or such shorter period of time if permitted by Lender in its
sole discretion) but not more than ninety (90) days’ notice specifying a date (the “Total Defeasance Date”)
on which the Total Defeasance Event is to occur;

 

(ii)       Borrower
shall pay to Lender (A) all payments of principal and interest due and payable on the Loan to and including the Total Defeasance
Date; (B) all other sums, if any, then due and payable under the Note, this Agreement, the Security Instrument and the other Loan
Documents through and including the Total Defeasance Date (or, if the Total Defeasance Date is not a Monthly Payment Date, the
next occurring Monthly Payment Date); (C) all escrow, closing, recording, legal, appraisal, Rating Agency and other fees, costs
and expenses paid or incurred by Lender or its agents in connection with the Total Defeasance Event, the release of the lien of
Security Instrument on the Property, the review of the proposed Defeasance Collateral and the preparation of the Security Agreement
and related documentation; and (D) any revenue, documentary stamp, intangible or other taxes, charges or fees due in connection
with the transfer or assumption of the Note by the Successor Borrower and/or the Total Defeasance Event.

 

(iii)      Borrower
shall deposit (or cause to be deposited) the Total Defeasance Collateral into the Defeasance Collateral Account and otherwise comply
with the provisions of Section 2.8(d) hereof;

 

(iv)      Borrower
shall execute and deliver to Lender a Security Agreement in respect of the Defeasance Collateral Account and the Total Defeasance
Collateral;

 

(v)       Borrower
shall deliver to Lender one (1) or more opinions of counsel for Borrower that are standard in commercial defeasance transactions
and subject only to customary qualifications, assumptions and exceptions opining, among other things, that (A) Lender has a legal
and valid perfected first priority security interest in the Defeasance Collateral Account and the Total Defeasance Collateral;
(B) if a Securitization has occurred (1) neither the REMIC Trust formed pursuant to such Securitization nor any subsequent or prior
Securitization of the Loan or any portion thereof or interest therein will fail to maintain its respective status as a “real
estate mortgage investment conduit” within the meaning of Section 860D of the IRS Code as a result of a Total Defeasance
Event pursuant to this Section 2.8 and (2) the Total Defeasance Event would neither (I) constitute a “significant
modification” of the Loan within the meaning of Treasury Regulation Section 1.860G02(b)(2) nor (II) cause the Loan to
fail to be a “qualified mortgage” within the meaning of Section 860G(a)(3)(A) of the IRS Code; and (C) intentionally
omitted;

 

    	22

    	 

    

 

(vi)      If required
pursuant to the applicable pooling and servicing agreement and/or as may be required by the applicable Rating Agencies, Borrower
shall deliver to Lender a Rating Agency Confirmation as to the Total Defeasance Event;

 

(vii)     Borrower
shall deliver an Officer’s Certificate certifying that the requirements set forth in this Section 2.8 have been satisfied;

 

(viii)    Borrower
shall deliver a certificate of a “big four” or other nationally recognized public accounting firm acceptable to Lender
(or from an independent certified public accountant reasonably acceptable to Lender) certifying that the Total Defeasance Collateral
will generate monthly amounts equal to or greater than the Scheduled Defeasance Payments;

 

(ix)       Borrower
shall deliver such other certificates, opinions, documents and instruments as Lender may reasonably request; and

 

(x)        Borrower
shall pay all costs and expenses of Lender incurred in connection with the Total Defeasance Event, including, without limitation,
Lender’s reasonable attorneys’ fees and expenses and Rating Agency fees and expenses.

 

(b)        If Borrower
has elected to defease the entire Note and the requirements of this Section 2.8 have been satisfied, the Property shall be
released from the lien of the Security Instrument and the Total Defeasance Collateral pledged pursuant to the Security Agreement
shall be the sole source of collateral securing the Note. In connection with the release of the lien, Borrower shall submit to
Lender, not less than thirty (30) days prior to the Total Defeasance Date (or such shorter time as is acceptable to Lender in its
sole discretion), a release of lien (and related Loan Documents) for execution by Lender. Such release shall be in a form appropriate
in the jurisdiction in which the Property is located and shall contain standard provisions protecting the rights of the releasing
lender. In addition, Borrower shall provide all other documentation Lender reasonably requires to be delivered by Borrower in connection
with such release, together with an Officer’s Certificate certifying that such documentation (i) is in compliance with all
Applicable Law, and (ii) will affect such release in accordance with the terms of this Agreement. Borrower shall pay all costs,
taxes and expenses associated with the release of the lien of the Security Instrument, including Lender’s reasonable attorneys’
fees.

 

(c)        Intentionally
Omitted.

 

    	23

    	 

    

 

(d)        On or
before the date on which Borrower delivers (or causes to be delivered) the Total Defeasance Collateral, Borrower or Successor Borrower
(as applicable) shall open at any Eligible Institution an Eligible Account (the “Defeasance Collateral Account”).
The Defeasance Collateral Account shall contain only (i) Total Defeasance Collateral, and (ii) cash from interest and principal
paid on the Total Defeasance Collateral. All cash from interest and principal payments paid on the Total Defeasance Collateral
shall be paid over to Lender on each Monthly Payment Date and applied first to accrued and unpaid interest and then to principal.
Any cash from interest and principal paid on the Total Defeasance Collateral not needed to pay the Scheduled Defeasance Payments
shall be paid to Borrower or Successor Borrower (as applicable). Borrower or Successor Borrower (as applicable) shall cause the
Eligible Institution at which the Total Defeasance Collateral is deposited to enter into an agreement with Borrower or Successor
Borrower (as applicable) and Lender, satisfying the Prudent Lender Standard, pursuant to which such Eligible Institution shall
agree to hold and distribute the Total Defeasance Collateral in accordance with this Agreement. Borrower or Successor Borrower
(as applicable) shall be the owner of the Defeasance Collateral Account and shall report all income accrued on Total Defeasance
Collateral for federal, state and local income tax purposes in its income tax return. Borrower shall prepay all cost and expenses
associated with opening and maintaining the Defeasance Collateral Account. Lender shall not in any way be liable by reason of any
insufficiency in the Defeasance Collateral Account.

 

(e)        In connection
with a Total Defeasance Event under this Section 2.8, Borrower shall transfer and assign all obligations, rights and duties
under and to the Note and the Security Agreement, together with the Total Defeasance Collateral to a newly-created successor entity,
which entity shall be a Single Purpose Entity and which entity shall be designated or established by Lender, at Lender’s
option (the “Successor Borrower”). Lender shall also have the right to purchase on behalf of Borrower, or cause
to be purchased on behalf of Borrower, the pledged Total Defeasance Collateral. Such rights to designate or establish the Successor
Borrower as provided above or to purchase, or cause the purchase of, on behalf of Borrower the pledged Total Defeasance Collateral
as provided above may be exercised by Wells Fargo in its sole discretion and shall be retained by Wells Fargo as the original Lender
herein (and any successor or assign of Wells Fargo under a specific assignment of such retained rights separate and apart from
a Secondary Market Transaction related to all or any portion of the Loan), notwithstanding any Secondary Market Transaction related
to all or any portion of the Loan. Such Successor Borrower shall assume the obligations under the Note and the Security Agreement
and each of Borrower, Guarantor and Master Lessee shall be relieved of its respective obligations under the Loan Documents other
than those obligations which by their terms survive a repayment, defeasance or other satisfaction of the Loan and/or a transfer
of the Property in connection with Lender’s exercise of its remedies under the Loan Documents. Borrower shall pay a minimum
of $1,000 to any such Successor Borrower as consideration for assuming the obligations under the Note and the Security Agreement.
Borrower shall pay all costs and expenses incurred by Lender, including the cost of establishing the Successor Borrower and Lender’s
attorney’s fees and expenses, incurred in connection therewith.

 

(f)        Notwithstanding
anything to the contrary contained in this Section 2.8, the parties hereto hereby acknowledge and agree that any Lender approval
or similar discretionary rights over any matters contained in this Section 2.8 (any such matter, a “Defeasance Approval
Item”) shall be construed such that Lender shall be permitted to withhold its consent or approval with respect to any
Defeasance Approval Item only if the same fails to meet the Prudent Lender Standard.

 

    	24

    	 

    

 

ARTICLE
3.

REPRESENTATIONS AND WARRANTIES

 

Borrower represents and
warrants as of the Closing Date that:

 

Section 3.1        Legal
Status and Authority.

 

Each of Borrower and Master
Lessee (a) is duly organized, validly existing and in good standing under the laws of its state of formation; (b) is duly qualified
to transact business and is in good standing in the State; and (c) has all necessary approvals, governmental and otherwise, and
full power and authority to own, operate and lease the Property (as applicable). Borrower has full power, authority and legal right
to mortgage, grant, bargain, sell, pledge, assign, warrant, transfer and convey the Property pursuant to the terms hereof and to
keep and observe all of the terms of this Agreement, the Note, the Security Instrument and the other Loan Documents on Borrower’s
part to be performed. Master Lessee has full power, authority and legal right to keep and observe all of the terms of this Agreement
and the other Loan Documents to which it is a party on Master Lessee’s part to be performed.

 

Section 3.2        Validity
of Documents.

 

(a)        The execution,
delivery and performance of this Agreement, the Note, the Security Instrument and the other Loan Documents by Borrower, Master
Lessee, and their applicable Affiliates and the borrowing evidenced by the Note and this Agreement (i) are within the power and
authority of such parties, as applicable; (ii) have been authorized by all requisite organizational action of such parties; (iii)
have received all necessary approvals and consents, corporate, governmental or otherwise; (iv) will not violate, conflict with,
result in a breach of or constitute (with notice or lapse of time, or both) a material default under any provision of law, any
order or judgment of any court or Governmental Authority, any license, certificate or other approval required to operate the Property,
Borrower’s organizational documents, Master Lessee’s organizational documents, or any indenture, agreement or other
instrument to which Borrower or Master Lessee is a party or by which it or any of its assets or the Property is or may be bound
or affected, including, without limitation, the Management Agreement; (v) will not result in the creation or imposition of any
lien, charge or encumbrance whatsoever upon any of its assets, except the interest created under the Master Lease and the lien
and security interest created hereby and by the other Loan Documents; and (vi) will not require any authorization or license from,
or any filing with, any Governmental Authority (except for the recordation of the Security Instrument in appropriate land records
in the State and except for Uniform Commercial Code filings relating to the security interest created hereby or by the Master Lease
Assignment of Rents or the Memorandum of Subordination Agreement), (b) this Agreement, the Note, the Security Instrument and the
other Loan Documents to which Borrower is a party have been duly executed and delivered by Borrower through the undersigned authorized
representative of Borrower and (c) this Agreement, the Note, the Security Instrument and the other Loan Documents constitute the
legal, valid and binding obligations of Borrower and are enforceable against Borrower in accordance with their respective terms.
To the best of Borrower’s knowledge, the Loan Documents are not subject to any right of rescission, set-off, counterclaim
or defense by Borrower, including the defense of usury, nor would the operation of any of the terms of the Loan Documents, or the
lawful exercise of any right thereunder, render the Loan Documents unenforceable (except as such enforcement may be limited by
bankruptcy, insolvency, fraudulent transfers, reorganization, moratorium or other similar Creditors Rights Laws, and by general
principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law)), and Borrower
has not asserted any right of rescission, set-off, counterclaim or defense with respect thereto.

 

    	25

    	 

    

 

Section 3.3        Litigation.

 

There is no action, suit,
investigation, arbitration or proceeding, judicial, governmental, administrative or otherwise (including any condemnation or similar
proceeding), pending, filed, or, to the best of Borrower’s knowledge, threatened against or affecting Borrower, Sponsor,
Master Lessee or Guarantor or against or affecting the Property that has not been disclosed to Lender by Borrower in writing in
connection with the closing of the Loan, is not fully covered by insurance or, if determined adversely to Borrower, Sponsor, Master
Lessee or Guarantor, could reasonably be expected to have a material adverse effect on (a) Borrower’s title to the Property,
(b) the validity or enforceability of the Security Instrument, (c) Borrower’s ability to perform under the Loan Documents,
(d) Guarantor’s ability to perform under the Guaranty, (e) the use, operation or value of the Property, (f) the principal
benefit of the security intended to be provided by the Loan Documents, (g) the ability of the Property to generate net cash flow
sufficient to pay the debt service and other amounts due under the Loan, or (h) Master Lessee’s ability to perform under
the Loan Documents to which Master Lessee is a party and the Master Lease.

 

Section 3.4        Agreements.

 

(a)        Neither Borrower
nor Master Lessee is a party to any agreement or instrument or subject to any restriction which could reasonably be expected to
have a Material Adverse Effect. Neither Borrower nor Master Lessee is in default in any material respect in the performance, observance
or fulfillment of any of the obligations, covenants or conditions contained in any agreement or instrument to which it is a party
or by which Borrower, Master Lessee or the Property is bound.

 

(b)        Neither Borrower
nor Master Lessee has any material financial obligation under any agreement or instrument to which Borrower and/or Master Lessee
is a party or by which Borrower, Master Lessee or the Property is otherwise bound, other than (i) Permitted Indebtedness and (ii)
obligations under this Agreement, the Security Instrument, the Note, the Master Lease, the Management Agreement, the Franchise
Agreement, other agreements relating to the operation of the Property entered into in the ordinary course of business in in accordance
with the terms of the Loan Documents, and the other Loan Documents.

 

(c)        There is no agreement
or instrument to which Borrower or Master Lessee is a party or by which Borrower or Master Lessee is bound that would require the
subordination in right of payment of any of Borrower’s obligations hereunder or under the Note to an obligation owed to another
party.

 

    	26

    	 

    

 

Section 3.5        Financial
Condition.

 

(a)        Each of
Borrower and Master Lessee is solvent, and no proceeding under Creditors Rights Laws with respect to Borrower or Master Lessee
has been initiated and Borrower has received reasonably equivalent value for the granting of the Security Instrument.

 

(b)        Neither
the Property, nor any portion thereof, is the subject of any proceeding under Creditors Rights Laws.

 

(c)        No petition
in bankruptcy has been filed by or against Borrower, Sponsor, Master Lessee, Guarantor or any constituent Person thereof, in the
last ten (10) years, and none of Borrower, Sponsor, Guarantor, Master Lessee or any constituent Person thereof, in the last ten
(10) years has ever made any assignment for the benefit of creditors or taken advantage of any Creditors Rights Laws.

 

(d)        Neither
Borrower nor Master Lessee is contemplating either the filing of a petition by it under any Creditors Rights Laws or the liquidation
of its assets or property, and Borrower does not have any knowledge of any Person contemplating the filing of any such petition
against it.

 

Section 3.6        Disclosure.

 

Each of Borrower and Master
Lessee has disclosed to Lender all material facts known to it and has not failed to disclose any material fact known to it that
could cause any representation or warranty made herein to be materially misleading.

 

Section 3.7        No
Plan Assets.

 

As of the date hereof and
throughout the term of the Loan (a) neither Borrower nor Master Lessee is or will be an “employee benefit plan,” as
defined in Section 3(3) of ERISA, subject to Title I of ERISA, (b) neither Borrower nor Master Lessee is or will be a “governmental
plan” within the meaning of Section 3(32) of ERISA, (c) transactions by or with either Borrower or Master Lessee are
not and will not be subject to any state statute, regulation or ruling regulating investments of, or fiduciary obligations with
respect to, governmental plans, and (d) none of the assets of Borrower nor Master Lessee constitutes or will constitute “plan
assets” of one or more such plans within the meaning of 29 C.F.R. Section 2510.3-101, as modified by Section 3(42)
of ERISA. As of the date hereof, neither Borrower, nor Master Lessee nor any ERISA Affiliate maintains, sponsors or contributes
to a Defined Benefit Plan or a Multiemployer Plan. Neither Borrower, nor Master Lessee nor any ERISA Affiliate sponsors, contributes
to or maintains either currently or in the past a plan, document, agreement, or arrangement subject to ERISA.

 

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Section 3.8        Not
a Foreign Person.

 

Neither Borrower nor Master
Lessee is a “foreign person” within the meaning of § 1445(f)(3) of the IRS Code.

 

Section 3.9        Business
Purposes.

 

The Loan is solely for
the business purpose of Borrower, and is not for personal, family, household, or agricultural purposes.

 

Section 3.10        Borrower
Information.

 

Borrower’s principal
place of business and its chief executive office as of the date hereof is 6363 Woodway, Suite 110, Houston, Texas 77057. Borrower’s
mailing address, as set forth in the opening paragraph hereof or as changed in accordance with the provisions hereof, is true and
correct. Borrower is not subject to back-up withholding taxes.

 

Section 3.11        Status
of Property.

 

(a)        Each of
Borrower and Master Lessee has obtained (or caused to be obtained) all material certificates, licenses, permits, franchises, consents,
any applicable liquor licenses, and other approvals, governmental and otherwise, necessary for the ownership and operation of the
Property and the conduct of its business (collectively, “Licenses”) and all required zoning, building code,
land use, environmental and other similar permits or approvals, all of which are in full force and effect as of the date hereof
and not subject to revocation, suspension, forfeiture or modification.

 

(b)        Except
as disclosed in the zoning report delivered to Lender in connection with the origination of the Loan, the Property and the present
and contemplated use and occupancy thereof are in full compliance with all applicable zoning ordinances, building codes, land use
laws, Environmental Laws and other similar Applicable Law.

 

(c)        The Property
is served by all utilities necessary for the current or contemplated use thereof. All utility service is provided by public utilities
and the Property has accepted or is equipped to accept such utility service. The Property is served by public water and sewer systems.
All utilities and public water and sewer systems serving the Property are adequate for the current or contemplated use thereof.

 

(d)        All public
roads and streets necessary for service of and access to the Property for the current or contemplated use thereof have been completed,
are serviceable and all-weather and are physically and legally open for use by the public. The Property has either direct access
to such public roads or streets or access to such public roads or streets by virtue of a perpetual easement or similar agreement
inuring in favor of Borrower and any subsequent owners of the Property.

 

    	28

    	 

    

 

(e)        The Property
is free from damage caused by fire or other casualty. Except as disclosed in any physical conditions report delivered to Lender
in connection with its underwriting of the Loan, to Borrower’s knowledge, the Property, including, without limitation, all
buildings, Improvements, parking facilities, sidewalks, storm drainage systems, roofs, plumbing systems, HVAC systems, fire protection
systems, electrical systems, equipment, elevators, exterior sidings and doors, landscaping, irrigation systems and all structural
components, are in good condition, order and repair in all material respects; there exists no structural or other material defects
or damages in the Property, whether latent or otherwise, and neither Borrower nor Master Lessee has received notice from any insurance
company or bonding company of any defects or inadequacies in the Property, or any part thereof, which would adversely affect the
insurability of the same or cause the imposition of extraordinary premiums or charges thereon or of any termination or threatened
termination of any policy of insurance or bond.

 

(f)        To the
best of Borrower’s knowledge after due inquiry, all costs and expenses of any and all labor, materials, supplies and equipment
used in the construction of the Improvements have been paid in full. There are no mechanics’ or similar liens or claims which
have been filed for work, labor or material (and no rights are outstanding that under Applicable Law could give rise to any such
liens) affecting the Property which are or may be prior to or equal to the lien of the Security Instrument.

 

(g)        Borrower
or Master Lessee has paid in full for, and is the owner of, all furnishings, fixtures and equipment (other than Tenants’
property) used in connection with the operation of the Property, free and clear of any and all security interests, liens or encumbrances,
except with respect to Permitted Encumbrances.

 

(h)        All liquid
and solid waste disposal, septic and sewer systems located on the Property are in a good and safe condition and repair and in compliance
with all Applicable Law.

 

(i)        No portion
of the Improvements is located in an area identified by the Federal Emergency Management Agency or any successor thereto as an
area having special flood hazards pursuant to the Flood Insurance Acts or, if any portion of the Improvements is located within
such area, Borrower has obtained and will maintain the insurance prescribed in Section 7.1(a) hereof. No part of the Property
consists of or is classified as wetlands, tidelands or swamp and overflow lands.

 

(j)        Except
for encroachments that are insured against pursuant to the Title Insurance Policy or otherwise do not cause a Material Adverse
Effect, to Borrower’s knowledge, except, if applicable, as otherwise disclosed in the survey of the Property delivered to
Lender in connection with the closing of the Loan, all the Improvements lie within the boundaries of the Land and any building
restriction lines applicable to the Land and no improvements on adjoining properties encroach onto the Property.

 

(k)        To Borrower’s
knowledge after due inquiry, there are no pending or proposed special or other assessments for public improvements or otherwise
affecting the Property, nor are there any contemplated improvements to the Property that may result in such special or other assessments.

 

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Section 3.12        Financial
Information.

 

All financial data, including,
without limitation, the balance sheets, statements of cash flow, statements of income and operating expense and rent rolls, that
have been delivered to Lender in respect of Borrower, Sponsor, Guarantor, Master Lessee and/or the Property (a) are true, complete
and correct in all material respects, (b) fairly represent the financial condition of Borrower, Sponsor, Guarantor, Master Lessee
or the Property, as applicable, as of the date of such reports, and (c) to the extent prepared or audited by an independent certified
public accounting firm, have been prepared in accordance with GAAP and the Uniform System of Accounts throughout the periods covered,
except as disclosed therein; provided, however, that if any financial data is delivered to Lender by any Person other
than Borrower, Sponsor, Guarantor, Master Lessee or any Affiliate of Borrower, Sponsor, Guarantor or Master Lessee, or if such
financial data has been prepared by or at the direction of any Person other than Borrower, Sponsor, Guarantor, Master Lessee or
any Affiliate of Borrower, Sponsor, Guarantor or Master Lessee, then the foregoing representations with respect to such financial
data shall be to the best of Borrower’s knowledge, after due inquiry. Neither Borrower nor Master Lessee has any contingent
liabilities, liabilities for taxes, unusual forward or long-term commitments or unrealized or anticipated losses from any unfavorable
commitments that are known to Borrower and/or Master Lessee and reasonably likely to have a Material Adverse Effect, except as
referred to or reflected in said financial statements. Since the date of such financial statements delivered with respect to Borrower,
Sponsor, Guarantor Master Lessee and/or the Property, there has been no materially adverse change in the financial condition, operations
or business of Borrower, Sponsor, Master Lessee or Guarantor from that set forth in said financial statements.

 

Section 3.13        Condemnation.

 

No Condemnation or other
proceeding has been commenced, is pending or, to Borrower’s best knowledge, is threatened with respect to all or any portion
of the Property or for the relocation of the access to the Property.

 

Section 3.14        Separate
Lots.

 

The Property is assessed
for real estate tax purposes as one or more wholly independent tax lot or lots, separate from any adjoining land or improvements
not constituting a part of such lot or lots, and no other land or improvements is assessed and taxed together with the Property
or any portion thereof.

 

Section 3.15        Insurance.

 

Borrower has obtained and
has delivered to Lender certificates of insurance and/or other evidence reasonably satisfactory to Lender reflecting that the insurance
coverages, amounts and other requirements set forth in this Agreement are in place. There are no present claims with respect to
the Property of any material nature under any of the Policies, and to Borrower’s knowledge, no Person, including Borrower,
has done, by act or omission, anything which would impair the coverage of any of the Policies.

 

Section 3.16        Use
of Property.

 

The Property is used exclusively
as a hotel and for other appurtenant and related uses.

 

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Section 3.17        Leases
and the Master Lease.

 

(a) Borrower is the sole
owner of the entire lessor’s interest in the Master Lease, the Property is not subject to any leases other than the Master
Lease, and Borrower is the holder of an assignee’s interest of all Rents from the Leases pursuant to the Master Lease Assignment
of Leases; (b) no Person has any possessory interest in the Property or right to occupy the same except under and pursuant to the
provisions of the Master Lease and for Hotel Transactions; (c) the Master Lease is valid and enforceable against Borrower and/or
Master Lessee, as applicable, and is in full force and effect and has not been amended, restated, replaced or otherwise modified
(except, in each case, as expressly set forth herein); (d) no party under the Master Lease is in default and to Borrower’s
knowledge, no event has occurred which, but for the passage of time, the giving of notice, or both, would constitute a default
under the Master Lease; (e) all Rents due have been paid in full and Master Lessee is not in arrears in its payment of Rent; (f)
except with respect to the Master Lease Assignment of Leases, none of the Rents or the Master Lease have been assigned or otherwise
pledged or hypothecated; (g) none of the Rents have been collected for more than one (1) month in advance (except a security deposit
shall not be deemed rent collected in advance); (h) the premises demised under the Master Lease have been completed and Master
Lessee has accepted the same and have taken possession of the same on a rent-paying basis with no rent concessions to Master Lessee;
(i) there exist no offsets or defenses to the payment of any portion of the Rents and Borrower does not have any monetary obligation
to Master Lessee under the Master Lease except as may be specifically set forth therein; (j) Borrower has not received notice from
Master Lessee challenging the validity or enforceability of the Master Lease; (k) except with respect to the Master Lease Documents,
there are no agreements with the Master Lessee other than expressly set forth in the Master Lease; (l) the Master Lease does not
contain any option to purchase, right of first refusal to purchase, right of first refusal to lease additional space at the Property,
or any other similar provision; (m) no person or entity has any possessory interest in, or right to occupy, the Property except
under and pursuant to the Master Lease and for Hotel Transactions; (n) Master Lessee has not exercised any right to “go dark”
that it may have under the Master Lease (as applicable) and no event has occurred that, but for the giving of notice and/or passage
of time, would give Master Lessee any right to abate rent, “go dark” or terminate the Master Lease; (o) all security
deposits relating to the Master Lease (if any) have been collected by Borrower; (p) no brokerage commissions or finders fees are
due and payable regarding any Lease or the Master Lease; (q) Master Lessee is in actual, physical occupancy of the premises demised
under the Master Lease and as of the Closing Date shall be paying full rent under the Master Lease, and (r) the representations
made in the estoppel delivered with respect to the Ground Lease in connection with the Loan are to Borrower’s knowledge true,
complete and correct.

 

Section 3.18        Filing
and Recording Taxes.

 

All mortgage, mortgage
recording, stamp, intangible or other similar taxes required to be paid by any Person under Applicable Law currently in effect
in connection with the execution, delivery, recordation, filing, registration, perfection or enforcement of any of this Agreement,
the Security Instrument, the Note and the other Loan Documents, including, without limitation, the Security Instrument, have been
paid or will be paid, and, under current Applicable Law, the Security Instrument is enforceable in accordance with its terms by
Lender (or any subsequent holder thereof), except as such enforcement may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar Creditors Rights Laws, and by general principles of equity (regardless of whether such enforceability
is considered in a proceeding in equity or at law).

 

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Section 3.19      Management
Agreement and Franchise Agreement.

 

(a)        The Management
Agreement is in full force and effect and there is no default thereunder by any party thereto and, to Borrower’s knowledge,
no event has occurred that, with the passage of time and/or the giving of notice would constitute a default thereunder. As of the
date hereof, no management fees under the Management Agreement are due and payable.

 

(b)        The Franchise
Agreement is in full force and effect and there is no default thereunder by Master Lessee or, to Borrower’s knowledge, Franchisor,
and no event has occurred that, with the passage of time and/or the giving of notice would constitute a default thereunder (to
Borrower’s knowledge, as to the obligations of Franchisor). As of the date hereof, no franchise fees or any other fees under
the Management Agreement are due and payable.

 

Section 3.20      Illegal
Activity/Forfeiture.

 

(a)        No portion
of the Property has been or will be purchased, improved, equipped or furnished with proceeds of any illegal activity and to the
best of Borrower’s knowledge, there are no illegal activities or activities relating to controlled substances at the Property
(including, without limitation, for so long as such activities are illegal, any growing, distributing and/or dispensing of medical
marijuana).

 

(b)        There
has not been and shall never be committed by Borrower, Master Lessee or (to Borrower’s knowledge) any other person in occupancy
of or involved with the operation or use of the Property any act or omission affording the federal government or any state or local
government the right of forfeiture as against the Property or any part thereof or any monies paid in performance of Borrower’s
obligations under this Agreement, the Note, the Security Instrument or the other Loan Documents. Each of Borrower and Master Lessee
hereby covenants and agrees not to commit, permit or suffer to exist any act or omission affording such right of forfeiture. Each
of Borrower and Master Lessee also hereby covenants and agrees that it shall not commit, permit or suffer to exist any illegal
activities or activities relating to controlled substances at the Property (including, without limitation, for so long as such
activities are illegal, any growing, distributing and/or dispensing of medical marijuana).

 

Section 3.21        Taxes.

 

Borrower and/or Master
Lessee, as applicable, has filed all federal, state, county, municipal, and city income, personal property and other tax returns
required to have been filed by it and has paid all taxes and related liabilities which have become due pursuant to such returns
or pursuant to any assessments received by it. Neither Borrower nor Master Lessee knows of no basis for any additional assessment
in respect of any such taxes and related liabilities for prior years.

 

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Section 3.22        Permitted
Encumbrances.

 

None of the Permitted Encumbrances,
individually or in the aggregate, materially interferes with the benefits of the security intended to be provided by this Agreement,
the Security Instrument, the Note and the other Loan Documents, materially and adversely affects the value or marketability of
the Property, materially impairs the use or the operation of the Property or impairs Borrower’s ability to pay its obligations
in a timely manner.

 

Section 3.23        Material
Agreements.

 

With respect to each Material
Agreement, (a) each Material Agreement is in full force and effect and has not been amended, restated, replaced or otherwise modified
(except, in each case, as expressly set forth herein), (b) there are no defaults under any Material Agreement by Borrower or Master
Lessee, as applicable, or, to Borrower’s knowledge, any other party thereto and, to Borrower’s knowledge, no event
has occurred which, but for the passage of time, the giving of notice, or both, would constitute a default under any Material Agreement,
(c) all payments and other sums due and payable by Borrower and/or Master Lessee, as applicable, or, to Borrower’s knowledge,
by any other party thereto, under the Material Agreements have been paid in full, (d) no party to any Material Agreement has commenced
any action or given to Borrower or Master Lessee (or to Borrower’s knowledge, to any other party thereto) or received from
Borrower or Master Lessee (or to Borrower’s knowledge, from any other party thereto) any notice for the purpose of terminating
any Material Agreement, and (e) the representations made in any estoppel or similar document delivered with respect to any Material
Agreement in connection with the Loan are to Borrower’s knowledge true, complete and correct.

 

Section 3.24        Intentionally
Omitted.

 

Section 3.25        Federal
Reserve Regulations.

 

No part of the proceeds
of the Loan will be used for the purpose of purchasing or acquiring any “margin stock” within the meaning of Regulation
U of the Board of Governors of the Federal Reserve System or for any other purpose which would be inconsistent with such Regulation
U or any other Regulations of such Board of Governors, or for any purposes prohibited by Applicable Law or by the terms and conditions
of this Agreement, the Security Instrument, the Note or the other Loan Documents.

 

Section 3.26        Investment
Company Act.

 

Neither Borrower nor Master
Lessee is (a) an “investment company” or a company “controlled” by an “investment company,”
within the meaning of the Investment Company Act of 1940, as amended; (b) a “holding company” or a “subsidiary
company” of a “holding company” or an “affiliate” of either a “holding company” or a
“subsidiary company” within the meaning of the Public Utility Holding Company Act of 1935, as amended; or (c) subject
to any other federal or state law or regulation which purports to restrict or regulate its ability to borrow money.

 

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Section 3.27        Fraudulent
Conveyance.

 

Neither Borrower nor Master
Lessee has entered into the Loan or any Loan Document with the actual intent to hinder, delay, or defraud any creditor and each
of Borrower and Master Lessee has received reasonably equivalent value in exchange for its obligations under the Loan Documents.
Giving effect to the Loan and the Master Lease Documents, the fair saleable value of Borrower’s assets exceeds and will,
immediately following the execution and delivery of the Loan Documents and the Master Lease Documents, exceed Borrower’s
total liabilities, including, without limitation, subordinated, unliquidated, disputed or contingent obligations. The fair saleable
value of Borrower’s assets is and will, immediately following the execution and delivery of the Loan Documents and the transactions
contemplated by the Master Lease Documents, be greater than Borrower’s probable liabilities, including the probably maximum
amount of its contingent liabilities or its debts as such debts become absolute and matured. Borrower’s assets do not and,
immediately following the execution and delivery of the Loan Documents will not, constitute unreasonably small capital to carry
out its business as conducted or as proposed to be conducted. Neither Borrower nor Master Lessee intends to, or believes that it
will, incur debts and liabilities (including, without limitation, contingent liabilities and other commitments) beyond its ability
to pay such debts as they mature (taking into account the timing and amounts to be payable on or in respect of obligations of Borrower
or Master Lessee, respectively, and the anticipated need to refinance the Loan in order to repay it on the Maturity Date).

 

Section 3.28        Embargoed
Person.

 

As of the date hereof and
at all times throughout the term of the Loan, including after giving effect to any transfers of interests permitted pursuant to
the Loan Documents, (a) to the best of Borrower’s knowledge after due inquiry, none of the funds or other assets of Borrower,
Sponsor, Master Lessee or Guarantor constitute property of, or are beneficially owned, directly or indirectly, by any person, entity
or country which is a sanctioned person, entity or country under U.S. law, including but not limited to, the International Emergency
Economic Powers Act, 50 U.S.C. §§ 1701 et seq., The Trading with the Enemy Act, 50 U.S.C. App. 1 et seq., and any Executive
Orders or regulations promulgated thereunder (including regulations administered by the Office of Foreign Assets Control (“OFAC”)
of the U.S. Department of the Treasury and the Specially Designated Nationals List maintained by OFAC) with the result that the
investment in Borrower, Master Lessee and/or Guarantor, as applicable (whether directly or indirectly), is prohibited by Applicable
Law or the Loan made by Lender is in violation of Applicable Law (“Embargoed Person”); (b) to the best of Borrower’s
knowledge after due inquiry unless expressly waived in writing by Lender, no Embargoed Person has any interest of any nature whatsoever
in Borrower, Master Lessee or Guarantor, as applicable, with the result that the investment in Borrower, Master Lessee and/or Guarantor,
as applicable (whether directly or indirectly), is prohibited by Applicable Law or the Loan is in violation of Applicable Law;
and (c) to the best knowledge of Borrower, none of the funds of Borrower, Sponsor, Master Lessee or Guarantor, as applicable, have
been derived from any unlawful activity with the result that the investment in Borrower, Master Lessee and/or Guarantor, as applicable
(whether directly or indirectly), is prohibited by Applicable Law or the Loan is in violation of Applicable Law. Notwithstanding
the foregoing, to the extent that an Embargoed Person acquires a non-controlling interest in Guarantor, either (1) without the
knowledge of Borrower, Sponsor, Master Lessee or Guarantor, through a transaction brokered by a FINRA licensed broker dealer not
affiliated with Guarantor, provided such broker dealer has executed a dealer agreement or selling agreement with Guarantor or an
affiliate of Guarantor (which may be the managing broker dealer for the Guarantor) in which it covenants to, among other things,
comply with The USA PATRIOT Act (or any successor legislation), or (2) without the knowledge of Borrower, Sponsor, Master Lessee
or Guarantor, after the initial sale or offering of such interests in Guarantor, the resulting breach of the foregoing representations
shall be deemed to be unintentional and not willful or grossly negligent for purposes of Section 13.1(a) hereof. Borrower covenants
and agrees that in the event Borrower receives any notice that Borrower, Sponsor, Master Lessee or Guarantor (or any of their respective
beneficial owners, affiliates or participants) or any Person that has an interest in the Property is designated as an Embargoed
Person, Borrower shall immediately notify Lender in writing. At Lender’s option, it shall be an Event of Default hereunder
if Borrower, Guarantor, Master Lessee, or Sponsor is designated as an Embargoed Person.

 

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Section 3.29        Patriot
Act.

 

All capitalized words and
phrases and all defined terms used in the USA Patriot Act of 2001, 107 Public Law 56 (October 26, 2001) and in other statutes
and all orders, rules and regulations of the United States government and its various executive departments, agencies and offices
related to the subject matter of the Patriot Act (collectively referred to in this Section only as the “Patriot Act”),
when used, have the meanings ascribed to such terms. Borrower hereby represents and warrants that Borrower, Sponsor, Master Lessee
and Guarantor and, to the best of Borrower’s knowledge, each and every Person affiliated with Borrower, Sponsor, Master Lessee
and/or Guarantor or that to Borrower’s knowledge has an economic interest in Borrower, is: (i) in full compliance with all
applicable requirements of the Patriot Act and any regulations issued thereunder; (ii) operated under policies, procedures and
practices, if applicable, that are in compliance with the Patriot Act and, to the extent obtainable by Borrower, Master Lessee
and/or any affiliate thereof, available to Lender for Lender’s review and inspection during normal business hours and upon
reasonable prior notice; (iii) not in receipt of any notice from the Secretary of State or the Attorney General of the United States
or any other department, agency or office of the United States claiming a violation or possible violation of the Patriot Act; (iv)
not a person who has been determined by competent authority to be subject to any of the prohibitions contained in the Patriot Act;
and (v) not owned or controlled by or now acting and or will in the future act for or on behalf of any person who has been determined
to be subject to the prohibitions contained in the Patriot Act. Borrower covenants and agrees that in the event Borrower receives
any notice that Borrower, Sponsor, Master Lessee or Guarantor (or any of their respective beneficial owners, affiliates or participants)
or any Person that has an interest in the Property is indicted, arraigned, or custodially detained on charges involving money laundering
or predicate crimes to money laundering, Borrower shall immediately notify Lender. At Lender’s option, it shall be an Event
of Default hereunder if Borrower, Guarantor, Master Lessee, or Sponsor is indicted, arraigned or custodially detained on charges
involving money laundering or predicate crimes to money laundering.

 

Section 3.30        Organizational
Chart.

 

The organizational chart
attached as Schedule II hereto, relating to Borrower, Master Lessee and certain Affiliates and other parties, is true, complete
and correct on and as of the date hereof.

 

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Section 3.31      Bank
Holding Company.

 

Neither Borrower nor Master
Lessee is a “bank holding company” or a direct or indirect subsidiary of a “bank holding company” as defined
in the Bank Holding Company Act of 1956, as amended, and Regulation Y thereunder of the Board of Governors of the Federal Reserve
System.

 

Section 3.32      Intentionally
Omitted. 

 

Section 3.33      REA
Representations.

 

With respect to each REA,
(a) each REA is in full force and effect and has not been amended, restated, replaced or otherwise modified (except, in each case,
as expressly set forth herein), (b) there are no defaults under any REA by Borrower and/or Master Lessee, as applicable, or, to
Borrower’s knowledge, any other party thereto and, to Borrower’s knowledge, no event has occurred which, but for the
passage of time, the giving of notice, or both, would constitute a default by Borrower and/or Master Lessee, as applicable (or,
to Borrower’s knowledge, by any other party thereto) under any REA, (c) all sums due and payable by Borrower and/or Master
Lessee, as applicable (or, to Borrower’s knowledge, by any other party thereto) under each REA have been paid in full, (d)
no party to any REA has commenced any action or given to Borrower or Master Lessee (or to Borrower’s knowledge, to any other
party thereto) or received from Borrower or Master Lessee (or to Borrower’s knowledge, from any other party thereto) any
notice for the purpose of terminating any REA, and (e) the representations made in any estoppel or similar document delivered with
respect to any REA in connection with the Loan, if any, are to Borrower’s knowledge true, complete and correct.

 

Section 3.34      No
Change in Facts or Circumstances.

 

All information submitted
by Borrower, Guarantor, Master Lessee or Sponsor to Lender and in all financial statements, rent rolls, reports, certificates and
other documents submitted in connection with the Loan or in satisfaction of the terms thereof and all statements of fact made by
Borrower, Sponsor, Master Lessee and/or Guarantor in this Agreement or in the other Loan Documents, are accurate, complete and
correct in all material respects, provided, however, that if such information was provided to Borrower, Guarantor, Master Lessee
or Sponsor by non-affiliated third parties, Borrower represents that such information is, to the best of its knowledge after due
inquiry, accurate, complete and correct in all material respects. There has been no material adverse change in any condition, fact,
circumstance or event that would make any such information inaccurate, incomplete or otherwise misleading in any material respect
or that would otherwise have a Material Adverse Effect.

 

Section 3.35      Perfection
of Accounts.

 

Borrower hereby represents
and warrants to Lender that:

 

(a)        This Agreement,
together with the other Loan Documents, create a valid and continuing security interest (as defined in the Uniform Commercial Code)
in the Accounts in favor of Lender, which security interest is prior to all other Liens, other than Permitted Encumbrances, and
is enforceable as such against creditors of and purchasers from Borrower. Other than in connection with the Loan Documents and
except for Permitted Encumbrances, Borrower has not sold or otherwise conveyed the Accounts; and

 

    	36

    	 

    

 

(b)       The Accounts
constitute “deposit accounts” or “securities accounts” within the meaning of the Uniform Commercial Code,
as set forth in the Cash Management Agreement.

 

Section 3.36    Franchise
Agreement. The Franchise Agreement is in full force and effect and there is no default
thereunder by any party thereto (to Borrower’s knowledge after due inquiry, as to Franchisor) and no event has occurred
that, with the passage of time and/or giving of notice, would constitute a default thereunder (to Borrower’s knowledge after
due inquiry, as to the obligations of Franchisor). 

 

Section 3.37     Guarantor
and Sponsor Representations.

 

(a)        Borrower
hereby represents and warrants that, as of the date hereof, the representations and warranties set forth in Sections 3.1, 3.2,
3.4(a), 3.5 (but excluding 3.5(b) thereof), 3.6, 3.7, 3.8, 3.21, and 3.27 above are true and correct with respect to Guarantor,
as the same are applicable to Guarantor. Wherever the term “Borrower” is used in each of the foregoing Sections it
shall be deemed to be “Guarantor” with respect to Guarantor.

 

(b)        Borrower
hereby represents and warrants that, as of the date hereof, the representations and warranties set forth in Section 3.5 above are
true and correct with respect to Sponsor, as the same are applicable to Sponsor. Wherever the term “Borrower” is used
in each of the foregoing Sections it shall be deemed to be “Sponsor” with respect to Sponsor.

 

Borrower agrees that, unless
expressly provided otherwise, all of the representations and warranties of Borrower set forth in this Article 3 and elsewhere in
this Agreement and the other Loan Documents shall survive for so long as any portion of the Debt remains owing to Lender. All representations,
warranties, covenants and agreements made in this Agreement and in the other Loan Documents shall be deemed to have been relied
upon by Lender notwithstanding any investigation heretofore or hereafter made by Lender or on its behalf.

 

ARTICLE
4.

BORROWER COVENANTS

 

From the date hereof and
until payment and performance in full of all obligations of Borrower under this Agreement, the Security Instrument, the Note and
the other Loan Documents, other than surviving indemnity obligations as to which no claim is then pending, or the earlier release
of the lien of the Security Instrument (and all related obligations) in accordance with the terms of this Agreement, the Security
Instrument, the Note and the other Loan Documents, each of Borrower and Master Lessee hereby covenants and agrees with Lender that:

 

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Section 4.1        Existence.

 

Each of Borrower and Master
Lessee will continuously maintain (a) its existence and shall not dissolve or permit its dissolution, (b) its rights to do business
in the applicable State and (c) to the extent necessary to the ownership and/or operation of the Property and/or or if failure
to maintain any franchise or trade name could reasonably be expected to have a Material Adverse Effect, its franchises and trade
names, if any.

 

Section 4.2        Applicable
Law.

 

(a)        Each of
Borrower and Master Lessee shall promptly comply and shall cause the Property to comply in all material respects with all Applicable
Law affecting the Borrower, Master Lessee and the Property, or the use thereof, including, without limitation, all Environmental
Laws and Applicable Law relating to OFAC, Embargoed Persons and the Patriot Act. Each of Borrower and Master Lessee shall do or
cause to be done all things necessary to preserve, renew and keep in full force and effect its existence, rights, Licenses, permits,
trade names, and franchises (and with respect to trade names and franchises, to the extent necessary to the ownership and/or operation
of the Property, or if failure to maintain any franchise or trade name could reasonably be expected to have a Material Adverse
Effect). Borrower shall give prompt notice to Lender of the receipt by Borrower and/or Master Lessee of (i) any written notice
related to a violation of any Applicable Law and (ii) any notice of the commencement of any proceedings or investigations which
relate to compliance with Applicable Law.

 

(b)        After
prior written notice to Lender, Borrower or Master Lessee, at Borrower’s or Master Lessee’s own expense, may contest
by appropriate legal proceeding, promptly initiated and conducted in good faith and with due diligence, the validity of any Applicable
Law, the applicability of any Applicable Law to Borrower, Master Lessee or the Property or any alleged violation of any Applicable
Law, provided that (i) no Event of Default has occurred and remains uncured; (ii) such proceeding shall be permitted under and
be conducted in accordance with the provisions of any instrument to which Borrower and/or Master Lessee is subject and shall not
constitute a default thereunder and such proceeding shall be permitted by and conducted in accordance with all Applicable Law;
(iii) neither the Property nor any part thereof or interest therein will be in impending danger of being sold, forfeited, terminated,
cancelled or lost; (iv) Borrower shall, and shall cause Master Lessee to, promptly upon final determination thereof comply with
(or shall cause compliance with) any such Applicable Law determined to be valid or applicable or cure any violation of any Applicable
Law; (v) such proceeding shall suspend the enforcement of the contested Applicable Law against Borrower, Master Lessee or
the Property; and (vi) Borrower shall furnish, or cause Master Lessee to furnish, such security as may be required in the proceeding,
or as may be requested by Lender, to insure compliance with such Applicable Law, together with all interest and penalties payable
in connection therewith. Lender (x) may apply any such security or part thereof, as necessary to cause compliance with such Applicable
Law at any time when, in the judgment of Lender, the validity, applicability or violation of such Applicable Law is finally established
or the Property (or any part thereof or interest therein) shall be in danger of being sold, forfeited, terminated, cancelled or
lost, (y) provided that no Event of Default has occurred and is continuing, make such security available to Borrower or Master
Lessee, as the case may be, to satisfy any obligation that may be payable by it in connection with the matter so contested, and
(z) provided that no Event of Default has occurred and is continuing, shall release any balance of such security to Borrower or
Master Lessee, as the case may be.

 

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Section 4.3        Maintenance
and Use of Property.

 

Each of Borrower and Master
Lessee shall cause the Property to be maintained in a good and safe condition and repair in all material respects. The Improvements
and the Personal Property shall not be removed, demolished or materially altered (except for normal replacement or disposal of
the Personal Property) without the consent of Lender or as otherwise permitted pursuant to Section 4.21 hereof. Borrower shall
promptly repair, replace or rebuild (or shall cause to be repaired, replaced or rebuilt) any part of the Property which may be
destroyed by any casualty, or become damaged, worn or dilapidated or which may be affected by any proceeding of the character referred
to in Section 3.13 hereof and shall complete and pay for any structure at any time in the process of construction or repair
on the Land. Except with Lender’s prior written consent, neither Borrower nor Master Lessee shall initiate, join in, acquiesce
in, or consent to any change in any private restrictive covenant, zoning law or other public or private restriction, limiting or
defining the uses which may be made of the Property or any part thereof. If under applicable zoning provisions the use of all or
any portion of the Property is or shall become a nonconforming use, neither Borrower nor Master Lessee will cause or permit the
nonconforming use to be discontinued or the nonconforming Improvement to be abandoned without the express written consent of Lender.

 

Section 4.4        Waste.

 

Neither Borrower nor Master
Lessee shall commit or suffer any waste of the Property or make any change in the use of the Property which will in any way materially
increase the risk of fire or other hazard arising out of the operation of the Property, or take any action that could reasonably
be expected to invalidate or give cause for cancellation of any Policy, or do or permit to be done thereon anything that could
reasonably be expected to materially impair the value of the Property or the security for the Loan. Neither Borrower nor Master
Lessee will, without the prior written consent of Lender, permit any drilling or exploration for or extraction, removal, or production
of any minerals from the surface or the subsurface of the Property, regardless of the depth thereof or the method of mining or
extraction thereof.

 

Section 4.5        Taxes
and Other Charges.

 

(a)        Borrower
shall pay, or shall cause Master Lessee to pay, all Taxes and Other Charges now or hereafter levied or assessed or imposed against
the Property or any part thereof as the same become due and payable; provided, however, Borrower’s obligation to directly
pay, or cause to be paid, Taxes and Other Charges shall be suspended for so long as Borrower complies with the terms and provisions
of Section 8.1 hereof. Borrower shall furnish, or shall cause Master Lessee to furnish, to Lender receipts for the payment
of the Taxes and the Other Charges prior to the date the same shall become delinquent (provided, however, that Borrower is not
required to furnish such receipts for payment of Taxes and Other Charges in the event that such Taxes and Other Charges have been
paid by Lender pursuant to Section 8.1 hereof). Except to the extent being contested in accordance with the Loan Documents,
Borrower (i) shall not suffer and shall promptly cause to be paid and discharged any lien or charge whatsoever which may be or
become a lien or charge against the Property, and (ii) shall promptly pay for all utility services provided to the Property.

 

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(b)        After
prior written notice to Lender, Borrower or Master Lessee, at its own expense, may contest by appropriate legal proceeding, promptly
initiated and conducted in good faith and with due diligence, the amount or validity or application in whole or in part of any
Taxes or Other Charges, provided that (i) no Event of Default has occurred and remains uncured; (ii) such proceeding shall be permitted
under and be conducted in accordance with the provisions of any other instrument to which Borrower is subject and shall not constitute
a default thereunder and such proceeding shall be permitted by and conducted in accordance with all Applicable Law; (iii) neither
the Property nor any part thereof or interest therein will be in impending danger of being sold, forfeited, terminated, canceled
or lost; (iv) Borrower shall promptly upon final determination thereof pay the amount of any such Taxes or Other Charges,
together with all costs, interest and penalties which may be payable in connection therewith; (v) such proceeding shall suspend
the collection of such contested Taxes or Other Charges from the Property; and (vi) Borrower shall furnish such security as may
be required in the proceeding, or deliver to Lender such reserve deposits as may be requested by Lender, to insure the payment
of any such Taxes or Other Charges, together with all interest and penalties thereon. Lender (x) may pay over any such cash deposit
or part thereof held by Lender to the claimant entitled thereto at any time when, in the judgment of Lender, the entitlement of
such claimant is established or the Property (or part thereof or interest therein) shall be in danger of being sold, forfeited,
terminated, canceled or lost or there shall be any danger of the lien of the Security Instrument being primed by any related lien,
(y) provided that no Event of Default has occurred and is continuing, shall make such security available to Borrower or Master
Lessee, as the case may be, to satisfy any obligation that may be payable by it in connection with the matter so contested, and
(z) provided that no Event of Default has occurred and is continuing, shall release any balance of such security to Borrower or
Master Lessee, as the case may be.

 

Section 4.6        Litigation.

 

Borrower shall, after becoming
aware thereof, give prompt written notice to Lender of any litigation or governmental proceedings pending or threatened in writing
against Borrower, Master Lessee or any SPE Component Entity which could reasonably be expected to have a Material Adverse Effect.

 

Section 4.7        Access
to Property.

 

Subject to the rights of
Tenants under Leases and the rights of Persons renting hotel rooms pursuant to Hotel Transactions, Borrower shall permit (and shall
cause Master Lessee to permit) agents, representatives and employees of Lender to inspect the Property or any part thereof at reasonable
hours upon reasonable advance notice.

 

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Section 4.8        Notice
of Default.

 

Borrower shall promptly
advise Lender of any material adverse change in Borrower’s, Master Lessee’s and/or Guarantor’s condition (financial
or otherwise) or of the occurrence of any Default or Event of Default of which Borrower has knowledge.

 

Section 4.9        Cooperate
in Legal Proceedings.

 

Borrower shall, and shall
cause Master Lessee to, cooperate fully with Lender with respect to any proceedings before any court, board or other Governmental
Authority which may in any way affect the rights of Lender hereunder or any rights obtained by Lender under any of the Note, the
Security Instrument or the other Loan Documents and, in connection therewith, permit Lender, at Lender’s election, to participate
in any such proceedings.

 

Section 4.10        Performance
by Borrower and Master Lessee.

 

Borrower shall, and shall
cause Master Lessee to, in a timely manner observe, perform and fulfill each and every covenant, term and provision to be observed
and performed by Borrower and/or Master Lessee, as applicable, under this Agreement, the Security Instrument, the Note and the
other Loan Documents and any other agreement or instrument affecting or pertaining to the Property and any amendments, modifications
or changes thereto.

 

Section 4.11        Awards.

 

Borrower shall, and shall
cause Master Lessee to, cooperate with Lender in obtaining for Lender the benefits of any Awards or insurance proceeds lawfully
or equitably payable in connection with the Property, and Lender shall be reimbursed for any expenses incurred in connection therewith
(including reasonable, actual attorneys’ fees and disbursements, and the payment by Lender of the expense of an appraisal
on behalf of Borrower or Master Lessee in case of a Casualty or Condemnation affecting the Property or any part thereto) out of
such Awards or insurance proceeds.

 

Section 4.12        Books
and Records.

 

(a)           Borrower
shall keep, and shall cause Master Lessee to keep, adequate books and records of account in accordance with the Uniform System
of Accounts and reconciled in accordance with GAAP, or in accordance with other methods acceptable to Lender in its reasonable
discretion (consistently applied), and Borrower will furnish, or cause Master Lessee to furnish, to Lender:

 

(i)        quarterly
(and prior to a Securitization, monthly) certified occupancy report for the subject month, including an average daily rate, and
any franchise inspection reports received by Borrower and/or Master Lessee during such month (in the form approved by Lender in
connection with the closing of the Loan) and tenant sales reports (if applicable), each signed and dated by a Responsible Officer
of Borrower, within fifteen (15) days after the end of each calendar month or forty five (45) days after the end of each calendar
quarter, as applicable. On or before thirty (30) days after the end of each calendar month, Borrower also will furnish, or cause
to be furnished, to Lender the most current Smith Travel Research Reports then available to Borrower reflecting market penetration
and relevant hotel properties competing with the Property;

 

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(ii)       quarterly
(and prior to a Securitization, monthly) operating statements of the Property, prepared and certified by a Responsible Officer
of Borrower or Master Lessee, as applicable, in the form required by Lender, detailing the revenues received, the expenses incurred
and major capital improvements for the period of calculation, an occupancy report for the subject quarter, including an average
daily rate, and containing appropriate year-to-date information, within fifteen (15) days after the end of each calendar month
or forty five (45) days after the end of each calendar quarter, as applicable;

 

(iii)      an annual
balance sheet, profit and loss statement, statement of cash flow, and statement of change in financial position of Borrower and
Master Lessee prepared and certified by a Responsible Officer of Borrower or Master Lessee, as applicable, to be true and correct,
within ninety (90) days after the close of each fiscal year of Borrower;

 

(iv)      an annual
operating statement of the Property prepared and certified by a Responsible Officer of Borrower or Master Lessee, as applicable,
to be true and correct, detailing the revenues received, the expenses incurred and major capital improvements for the period of
calculation, including occupancy statistics for the Property, and containing appropriate year-to-date information, within ninety
(90) days after the close of each fiscal year of Borrower;

 

(v)        by no later
than December 15 of each calendar year, an annual operating budget for the next succeeding calendar year presented on a monthly
basis consistent with the annual operating statement described above for the Property, including cash flow projections for the
upcoming year and all proposed capital replacements and improvements (the “Annual Budget”). During the continuance
of a Cash Trap Event Period, Lender shall have the right to approve each Annual Budget and no Annual Budget shall take effect unless
and until the same has been approved by Lender. Until such time that Lender approves a proposed Annual Budget for which its approval
is required hereunder, the most recent Annual Budget shall apply; provided that such Annual Budget shall be adjusted to reflect
actual increases in Taxes, Insurance Premiums and Other Charges and for increases in occupancy; and

 

(vi)       by no later
than fifteen (15) days after and as of the end of each calendar month during the period prior to Securitization (if requested by
Lender), and thereafter by no later than forty five (45) days after and as of the end of each calendar quarter, a summary report
containing each of the following with respect to the Property for the most recently completed calendar month or quarter (to the
extent applicable): (A) aggregate sales by tenants under Leases or other occupants of the Property, both on an actual (or to the
extent such information is not provided by such tenants or occupants, Borrower’s best estimate) and on a comparable store
basis, (B) rent per square foot payable by each such tenant or occupant, (C) aggregate occupancy of the Property by anchor
space and in-line store space and (D) a tenant aging and receivables report; and.

 

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(vii)      Borrower
shall furnish to Lender, on or before thirty (30) days after the close of each of Borrower’s fiscal years, a statement certified
by Borrower or a Responsible Officer of Borrower of the amounts of insurance maintained in compliance with this Agreement, of the
risks covered by such insurance and of the insurance company or companies which carry such insurance and, if requested by Lender,
verification of the adequacy of such insurance by an independent insurance broker or appraiser acceptable to Lender.

 

(b)        Upon request
from Lender, Borrower shall furnish in a timely manner to Lender (to the extent applicable):

 

(i)        a property
management report for the Property, showing the number of inquiries made and/or rental applications received from tenants or prospective
tenants and deposits received from tenants and any other information requested by Lender, in reasonable detail and certified by
a Responsible Officer of Borrower to be true and complete, but no more frequently than quarterly; and

 

(ii)       an accounting
of all security deposits held in connection with any Lease of any part of the Property, including the name and identification number
of the accounts in which such security deposits are held, the name and address of the financial institutions in which such security
deposits are held and the name of the person to contact at such financial institution, along with any authority or release necessary
for Lender to obtain information regarding such accounts directly from such financial institutions.

 

(c)        Within
ten (10) days of Lender’s request, Borrower shall furnish Lender (and shall cause Master Lessee and/or Guarantor to furnish
to Lender) with such other additional financial or management information (including State and Federal tax returns) as may, from
time to time, be reasonably required by Lender in form and substance satisfactory to Lender. Borrower shall furnish to Lender and
its agents convenient facilities for the examination and audit of any such books and records at any reasonable time from time to
time during business hours upon reasonable advance notice.

 

(d)        Borrower
agrees that all financial statements and other items required to be delivered to Lender pursuant to this Section 4.12 (each
a “Required Financial Item” and, collectively, the “Required Financial Items”) shall: (i)
be complete and correct in all material respects; (ii) present fairly the financial condition of the party; (iii) disclose all
liabilities that are required to be reflected or reserved against; and (iv) be prepared (A) in electronic and (if requested
by Lender) hardcopy formats and (B) in accordance with the Uniform System of Accounts and reconciled in accordance with GAAP or
in accordance with other methods acceptable to Lender in its sole discretion (consistently applied). Borrower shall be deemed to
warrant and represent that, as of the date of delivery of any such financial statement, there has been no material adverse change
in financial condition, nor have any assets or properties been sold, transferred, assigned, mortgaged, pledged or encumbered since
the date of such financial statement except as disclosed by Borrower in a writing delivered to Lender. Borrower agrees that no
Required Financial Item shall contain any misrepresentation or omission of a material fact.

 

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Section 4.13        Estoppel
Certificates.

 

(a)        After
request by Lender, Borrower, within ten (10) days of such request, shall furnish Lender or any proposed assignee with a statement,
duly acknowledged and certified, setting forth (i) the original principal amount of the Note, (ii) the unpaid principal amount
of the Note, (iii) the rate of interest of the Note, (iv) the terms of payment and maturity date of the Note, (v) the date installments
of interest and/or principal were last paid, (vi) that, except as provided in such statement, no Event of Default exists, (vii)
that this Agreement, the Note, the Security Instrument and the other Loan Documents are valid, legal and binding obligations and
have not been modified or if modified, giving particulars of such modification, (viii) whether any offsets or defenses are known
by Borrower to exist against the obligations secured hereby and, if any are alleged to exist, a detailed description thereof, (ix)
that all Leases (if any) are in full force and effect and have not been modified (or if modified, setting forth all modifications),
(x) the date to which the Rents thereunder have been paid pursuant to the Leases, if any, (xi) whether or not, to the best knowledge
of Borrower, any of the Tenants are in default under the Leases, and, if any of the Tenants are in default, setting forth the specific
nature of all such defaults, (xii) the amount of security deposits held by Borrower under each Lease (if any) and that such amounts
are consistent with the amounts required under each Lease, and (xiii) as to any other matters reasonably requested by Lender and
reasonably related to the Leases or the Master Lease, the obligations created and evidenced hereby and by the Security Instrument
or the Property.

 

(b)        Borrower
shall use its best efforts to deliver (and to cause Master Lessee to deliver) to Lender, promptly upon request, duly executed estoppel
certificates from any one or more Tenants as required by Lender attesting to such facts regarding the Lease(s) to which such Tenants
are a party, as Lender may reasonably require, including, but not limited to, attestations that each Lease covered thereby is in
full force and effect with no defaults thereunder on the part of any party (except as may be expressly set forth in such estoppel),
that none of the Rents have been paid more than one month in advance, except as security, and that the Tenant executing such estoppel
claims no defense or offset against the full and timely performance of its obligations under the Lease except as may be expressly
set forth in such estoppel.

 

(c)        Borrower
shall, promptly upon request of Lender deliver an estoppel certificate from the Master Lessee stating that (i) the Master Lease
is in full force and effect and has not been modified, amended or assigned (or listing the modifications, amendments or assignments,
if any), (ii) no Event of Default (as defined in the Master Lease) by Master Lessee exists under the Master Lease (or describing
in reasonable detail any Event of Default that does exist), (iii) neither Master Lessee nor Borrower has commenced any action or
given or received any notice for the purpose of terminating the Master Lease and (iv) all sums due and payable under the Master
Lease have been paid in full (or describing in reasonable detail any amounts then remaining due and unpaid).

 

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(d)        In connection
with the Securitization of the Loan (or any portion thereof or interest therein), at Lender’s request, Borrower shall provide
an estoppel certificate to any Investor or any prospective Investor in such form, substance and detail as Lender, such Investor
or prospective Investor may reasonably require.

 

(e)        Borrower
shall use commercially reasonable efforts to deliver to Lender, upon request, estoppel certificates from each party under each
REA and each Material Agreement in form and substance reasonably acceptable to Lender.

 

Section 4.14        Leases
and Rents.

 

(a)        Upon request,
Borrower shall furnish (or shall cause Master Lessee to furnish) Lender with executed copies of all Leases then in effect. All
renewals of Leases and all proposed leases shall provide for rental rates and terms comparable to existing local market rates and
shall be arm’s length transactions with bona fide, independent third-party Tenants. Within twenty (20) days after the execution
of a Lease or any renewals, amendments or modification of a Lease, Borrower shall deliver to Lender a copy thereof, together with
Borrower’s certification that such Lease (or such renewal, amendment or modification) was entered into in accordance with
the terms of this Agreement.

 

(b)        All Major
Leases and all renewals, amendments and modifications thereof (including, without limitation, any subletting or assignment thereunder
not contemplated by the express terms of such Major Lease (other than any subletting or assignment which does not require Borrower’s
consent under such Lease)) executed after the date hereof shall be subject to Lender’s prior approval, which approval shall
not be unreasonably withheld or delayed.

 

(c)        Lender
shall execute and deliver a Subordination, Non-Disturbance and Attornment Agreement on Lender’s then current standard form
to Tenants under future Major Leases approved by Lender promptly upon request with such commercially reasonable changes as may
be requested by Tenants, from time to time, as are reasonably acceptable to Lender. Lender’s execution of a Subordination,
Non-Disturbance and Attornment Agreement which is not in compliance with the foregoing sentence shall be at Lender’s sole
discretion and subject to such additional conditions as Lender shall reasonably determine.

 

(d)        Borrower
shall, and shall cause Master Lessee to, (i) observe and perform the obligations imposed upon the lessor under the Leases in all
material respects in a commercially reasonable manner; (ii) enforce the terms, covenants and conditions contained in the Leases
upon the part of the lessee thereunder to be observed or performed in a commercially reasonable manner, provided, however, Borrower
shall not (and shall cause Master Lessee to not) terminate or accept a surrender of a Major Lease without Lender’s prior
approval; (iii) not collect any of the Rents more than one (1) month in advance (other than security deposits); (iv) not execute
any assignment of lessor’s interest in the Leases or the Rents (except as contemplated by the Loan Documents); (v) not, without
Lender’s consent, alter, modify or change any Major Lease so as to change the amount of or payment date for rent, change
the expiration date, grant any option for additional space or term, materially reduce the obligations of the lessee or increase
the obligations of lessor; and (vi) hold all security deposits under all Leases in accordance with Applicable Law.

 

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(e)        Notwithstanding
anything contained herein to the contrary, Borrower shall not willfully withhold (or permit Master Lessee to willfully withhold)
from Lender any information regarding renewal, extension, amendment, modification, waiver of provisions of, termination, rental
reduction of, surrender of space of, or shortening of the term of, any Lease during the term of the Loan.

 

(f)        Borrower
shall notify Lender in writing, within two (2) Business Days following receipt thereof, of Borrower’s or Master Lessee’s
receipt of any termination fee or payment (“Lease Event Payment”) paid by any Tenant under any Lease or by Master
Lessee in consideration of any termination, modification or amendment or settlement of any Lease or the Master Lease or any release
or discharge of any Tenant under any Lease, or Master Lessee under the Master Lease, from any obligation thereunder (a “Lease
Event”). Borrower further covenants and agrees that (i) Borrower shall hold (or shall cause Master Lessee to hold) any
such Lease Event Payment in trust for the benefit of Lender and (ii) (A) in the event such Lease Event Payment is less than $50,000
and such Lease Event does not have a Material Adverse Effect, such Lease Event Payment shall be payable to Borrower (or Master
Lessee, as the case may be) or (B) in the event such Lease Event Payment equals or exceeds $50,000 or such Lease Event has a Material
Adverse Effect and provided there is no Event of Default or Cash Trap Event Period, such Lease Event Payment shall be placed by
Borrower (or Master Lessee, as the case may be) in reserve with Lender, to be disbursed by Lender for tenant improvement and leasing
commission costs with respect to the Property and/or for payment of the Debt or otherwise in connection with the Loan and/or the
Property, as so determined by Lender, in its sole discretion.

 

(g)        Notwithstanding
anything to the contrary contained herein, to the extent Lender’s prior approval is required for any leasing matters set
forth in this Section 4.14, Lender shall have ten (10) Business Days from receipt of written request and all required information
and documentation relating thereto in which to approve or disapprove such matter, provided that such request to Lender is marked
in bold lettering with the following language: “LENDER’S RESPONSE IS REQUIRED WITHIN TEN (10) BUSINESS DAYS OF
RECEIPT OF THIS NOTICE PURSUANT TO THE TERMS OF A LOAN AGREEMENT BETWEEN THE UNDERSIGNED AND LENDER” and the envelope containing
the request must be marked “PRIORITY”. In the event that Lender fails to respond to the leasing matter in question
within such time, Lender’s approval shall be deemed given for all purposes. Borrower shall provide (or shall cause Master
Lessee to provide) Lender with such information and documentation as may be reasonably required by Lender, including, without limitation,
lease comparables and other market information as reasonably required by Lender. For purposes of clarification, Lender requesting
additional and/or clarified information, in addition to approving or denying any request (in whole or in part), shall be deemed
a response by Lender for purposes of the foregoing.

 

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Section 4.15        Management
Agreement and Franchise Agreement.

 

(a)          Borrower
shall, and shall cause Master Lessee to, (i) diligently perform, observe and enforce in a commercially reasonable manner all of
the terms, covenants and conditions of the Management Agreement and the Franchise Agreement on the part of Borrower and/or Master
Lessee, as applicable, to be performed, observed and enforced to the end that all things shall be done which are necessary to keep
unimpaired the rights of Borrower and/or Master Lessee under the Management Agreement and the Franchise Agreement and (ii) promptly
notify Lender of the giving of any notice to Borrower and/or Master Lessee of any default by Borrower or Master Lessee, as applicable,
in the performance or observance of any of the terms, covenants or conditions of the Management Agreement and/or the Franchise
Agreement on the part of Borrower and/or Master Lessee, as applicable, to be performed and observed and deliver to Lender a true
copy of each such notice. Without Lender’s prior written consent, Borrower shall not (and shall cause Master Lessee to not)
(x) surrender the Management Agreement and/or the Franchise Agreement, (y) consent to the assignment by Manager and/or Franchisor
of its interest under the Management Agreement or the Franchise Agreement, as applicable (to the extent that any such consent is
required under the terms thereof), or (z) terminate or cancel the Management Agreement and/or the Franchise Agreement or modify,
change, supplement, alter or amend the Management Agreement or the Franchise Agreement in any respect, either orally or in writing;
provided, however, that Borrower and/or Master Lessee, as applicable, may modify, supplement or amend the Franchise
Agreement so long as such modification, supplement, or amendment (A) does not materially increase the obligations (or materially
decrease the rights) of Borrower and/or Master Lessee thereunder, (B) add any additional restrictions on Borrower, Master Lessee
or the Property, (C) materially increase the rights (or materially decrease the obligations) of Franchisor thereunder, or (D) include
or modify any restriction on Lender’s ability to sell the Loan (provided that customary releases of claims that might exist
against the Franchisor required in connection with a waiver, consent, forbearance or other modification entered into for the benefit
of Borrower or Master Lessee shall not be deemed to violate the foregoing limitations). Any such surrender of the Management Agreement
and/or the Franchise Agreement or termination, cancellation, modification, change, supplement, alteration or amendment of the Management
Agreement and/or the Franchise Agreement without the prior consent of Lender (to the extent such consent is required) shall be
void and of no force and effect.

 

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(b)        If Borrower
or Master Lessee shall default in the performance or observance of any material term, covenant or condition of the Management Agreement
and/or the Franchise Agreement on the part of Borrower or Master Lessee, as applicable, to be performed or observed, then, without
limiting the generality of the other provisions of this Agreement, and without waiving or releasing Borrower from any of its obligations
hereunder, Lender shall have the right, but shall be under no obligation, to pay any sums and to perform any act or take any action
as may be appropriate to cause all the terms, covenants and conditions of the Management Agreement and/or the Franchise Agreement
on the part of Borrower or Master Lessee to be performed or observed to be promptly performed or observed on behalf of Borrower
or Master Lessee to the end that the rights of Borrower and/or Master Lessee in, to and under the Management Agreement and/or the
Franchise Agreement shall be kept unimpaired and free from default. Lender and any person designated by Lender shall have, and
are hereby granted, the right to enter upon the Property at any time and from time to time for the purpose of taking any such action.
If Manager shall deliver to Lender a copy of any notice sent to Borrower and/or Master Lessee of default under the Management Agreement
and/or the Franchise Agreement, such notice shall constitute full protection to Lender for any action taken or omitted to be taken
by Lender in good faith, in reliance thereon.

 

(c)        Borrower
shall notify Lender, or shall cause Master Lessee to notify Lender, if Manager sub-contracts to a third party or an affiliate any
or all of its management responsibilities under the Management Agreement. Borrower shall, from time to time, use its best efforts
to obtain (or to cause Master Lessee to obtain) from Manager under the Management Agreement such certificates of estoppel with
respect to compliance by Borrower and Master Lessee with the terms of the Management Agreement as may be reasonably requested by
Lender. Borrower shall exercise (or shall cause Master Lessee to exercise) each individual option, if any, to extend or renew the
term of the Management Agreement upon demand by Lender made at any time within one (1) year of the last day upon which any such
option may be exercised, and each of Borrower and Master Lessee hereby expressly authorizes and appoints Lender its attorney-in-fact
to exercise any such option in the name of and upon behalf of Borrower and/or Master Lessee, as applicable, which power of attorney
shall be irrevocable and shall be deemed to be coupled with an interest. Any sums expended by Lender pursuant to this paragraph
or to Section 4.15(b) hereof shall bear interest at the Default Rate from the date such cost is incurred to the date of payment
to Lender, shall be deemed to constitute a portion of the Debt, shall be secured by the lien of the Security Instrument and the
other Loan Documents and shall be immediately due and payable upon demand by Lender therefor.

 

(d)        Without
limitation of the foregoing, if the Management Agreement is terminated pursuant to the Assignment of Management Agreement or for
any other reason, then Lender, at its option, may require Borrower or Master Lessee, as applicable, to engage, in accordance with
the terms and conditions set forth in the Assignment of Management Agreement, a new manager (the “New Manager”)
to manage the Property, which such New Manager shall be a Qualified Manager. New Manager shall be engaged by Borrower or Master
Lessee, as the case may be, pursuant to a written management agreement that complies with the terms hereof and of the Assignment
of Management Agreement and is otherwise satisfactory to Lender in all respects. New Manager, Borrower and Master Lessee shall
execute an Assignment of Management Agreement in form and substance reasonably acceptable to Lender and New Manager, which shall
be based on the form then used by Lender. Without limitation of the foregoing, if required by Lender, Borrower shall, as a condition
precedent to Borrower’s or Master Lessee’s engagement of such New Manager, obtain a Rating Agency Confirmation with
respect to such New Manager and management agreement.

 

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(e)        In the
event that the Franchise Agreement expires or is terminated (without limiting any obligation of Borrower or Master Lessee to obtain
Lender’s consent to any termination or modification of the Franchise Agreement in accordance with the terms and provisions
of this Agreement), Borrower shall, or shall cause Master Lessee to, promptly enter into a Replacement Franchise Agreement with
a Qualified Franchisor.

 

(f)        Upon the
occurrence and during the continuation of an Event of Default, neither Borrower nor Master Lessee shall grant any consent or approval
that would cause Borrower and/or Master Lessee to incur any material cost (including, without limitation, in connection with any
property improvement plan or material capital expenditure to the extent such consent or approval is needed) under the Management
Agreement or the Franchise Agreement without the prior consent of Lender, which consent may be granted, conditioned or withheld
in Lender’s sole discretion.

 

Section 4.16        Payment
for Labor and Materials.

 

(a)        Subject
to Section 4.16(b), Borrower will promptly pay (or cause to be paid) when due all bills and costs for labor, materials, and
specifically fabricated materials incurred in connection with the Property (any such bills and costs, a “Work Charge”)
and never permit to exist in respect of the Property or any part thereof any lien or security interest, even though inferior to
the liens and the security interests hereof, and in any event never permit to be created or exist in respect of the Property or
any part thereof any other or additional lien or security interest other than the liens or security interests created hereby and
by the Security Instrument, except for the Permitted Encumbrances.

 

(b)        After
prior written notice to Lender, Borrower or Master Lessee, at its own expense, may contest by appropriate legal proceeding, promptly
initiated and conducted in good faith and with due diligence, the validity of any Work Charge, the applicability of any Work Charge
to Borrower, Master Lessee or to the Property or any alleged non-payment of any Work Charge and defer paying the same, provided
that (i) no Event of Default has occurred and is continuing; (ii) such proceeding shall be permitted under and be conducted in
accordance with the provisions of any instrument to which Borrower and/or Master Lessee is subject and shall not constitute a default
thereunder and such proceeding shall be conducted in accordance with all Applicable Law; (iii) neither the Property nor any part
thereof or interest therein will be in imminent danger of being sold, forfeited, terminated, cancelled or lost; (iv) Borrower
or Master Lessee shall promptly upon final determination thereof pay (or cause to be paid) any such contested Work Charge determined
to be valid, applicable or unpaid; (v) such proceeding shall suspend the collection of such contested Work Charge from the Property
or Borrower or Master Lessee, as the case may be, shall have paid the same (or shall have caused the same to be paid) under protest;
and (vi) Borrower shall furnish (or cause to be furnished) such security as may be required in the proceeding, or as may be reasonably
requested by Lender, to insure payment of such Work Charge, together with all interest and penalties payable in connection therewith.
Lender may (x) apply any such security or part thereof, as necessary to pay for such Work Charge at any time when, in the judgment
of Lender, the validity, applicability or non-payment of such Work Charge is finally established or the Property (or any part thereof
or interest therein) shall be in present danger of being sold, forfeited, terminated, cancelled or lost, (y) provided that no Event
of Default has occurred and is continuing, shall make such security available to Borrower or Master Lessee, as the case may be,
to satisfy any obligation that may be payable by it in connection with the matter so contested, and (z) provided that no Event
of Default has occurred and is continuing, shall release any balance of such security to Borrower or Master Lessee, as the case
may be.

 

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Section 4.17      Performance
of Other Agreements.

 

Borrower shall observe
and perform (and shall cause Master Lessee to observe and perform), in all material respects, each and every term to be observed
or performed by Borrower and/or Master Lessee, as applicable, pursuant to the terms of any agreement or recorded instrument affecting
or pertaining to the Property and any amendments, modifications or changes thereto.

 

Section 4.18      Debt
Cancellation.

 

Neither Borrower nor Master
Lessee shall cancel or otherwise forgive or release any material claim or debt (other than termination of Leases in accordance
herewith) owed to Borrower and/or Master Lessee, as applicable, by any Person, except for adequate consideration and in the ordinary
course of Borrower’s and/or Master Lessee’s business, and except that (if applicable) cancellation, forgiveness or
releases in respect of Hotel Transactions may be effected in Borrower’s (or Master Lessee’s) reasonable business judgment.

 

Section 4.19      ERISA.

 

(a)         Neither
Borrower nor Master Lessee shall engage in any transaction which would cause any obligation, or action taken or to be taken, hereunder
(or the exercise by Lender of any of its rights under the Note, this Agreement or the other Loan Documents) to be a non-exempt
(under a statutory or administrative exemption) prohibited transaction under ERISA (“ERISA”) or constitute a
violation of any state statute, regulation or ruling impacting a Defined Benefit Plan or a governmental plan.

 

(b)         Borrower
shall deliver (or shall cause to be delivered) to Lender such certifications or other evidence from time to time throughout the
term of the Loan, as requested by Lender in its sole discretion, that (A) neither Borrower nor Master Lessee is an “employee
benefit plan” as defined in Section 3(3) of ERISA, which is subject to Title I of ERISA, or a “governmental plan”
within the meaning of Section 3(32) of ERISA; (B) neither Borrower nor Master Lessee is subject to any state statute, regulation
or ruling regulating investments of, or fiduciary obligations with respect to, governmental plans; and (C) one or more of the following
circumstances is true:

 

(i)        Equity interests
in Borrower and/or Master Lessee, as applicable, are publicly offered securities, within the meaning of 29 C.F.R. §2510.3-101(b)(2);

 

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(ii)       Less than
twenty-five percent (25%) of each outstanding class of equity interests in Borrower and/or Master Lessee, as applicable, is held
by “benefit plan investors” within the meaning of 29 C.F.R. §2510.3-101(f)(2), as modified by ERISA Section 3(42),
disregarding the value of any equity interests in Borrower held by (I) a person (other than a benefit plan investor) who has discretionary
authority or control with respect to the assets of Borrower and/or Master Lessee, as applicable,, (II) any person who provides
investment advice for a fee (direct or indirect) with respect to the assets of Borrower and/or Master Lessee, as applicable,, or
(III) any affiliate of a person described in the immediately preceding clause (I) or (II);

 

(iii)      Each of
Borrower and Master Lessee qualifies as an “operating company” or a “real estate operating company” within
the meaning of 29 C.F.R. §2510.3-101(c) or (e);

 

(iv)      The assets
of each of Borrower and Master Lessee are not otherwise “plan assets” of one or more “employee benefit plans”
(as defined in Section 3(3) of ERISA) subject to Title I of ERISA, within the meaning of 29 C.F.R. §2510.3-101, as modified
by ERISA Section 3(42); or

 

(v)        If a state
statute, regulation or ruling does apply to transactions by or with Borrower and/or Master Lessee regulating investments of, or
fiduciary obligations with respect to, governmental plans, no transactions contemplated by the Loan Documents will violate such
statute, regulation or ruling.

 

(c)        Neither
Borrower nor Master Lessee shall maintain, sponsor, contribute to or become obligated to contribute to, or suffer or permit any
ERISA Affiliate of Borrower or Master Lessee to, maintain, sponsor, contribute to or become obligated to contribute to, any Defined
Benefit Plan or a Multiemployer Plan or permit the assets of Borrower or Master Lessee to (i) become “plan assets”,
whether by operation of law or under regulations promulgated under ERISA or (ii) become subject to any state statute, regulation
or ruling regulating investments of, or fiduciary obligations with respect to, governmental plans.

 

Section 4.20        No
Joint Assessment.

 

Borrower shall not, and
shall cause Master Lessee to not, suffer, permit or initiate the joint assessment of the Property (a) with any other real
property constituting a tax lot separate from the Property, or (b) which constitutes real property with any portion of the Property
which may be deemed to constitute personal property, or any other procedure whereby the lien of any taxes which may be levied against
such personal property shall be assessed or levied or charged to such real property portion of the Property.

 

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Section 4.21        Alterations.

 

Lender’s prior approval
(which approval shall not be unreasonably withheld or delayed) shall be required in connection with any alterations to any Improvements
(a) that could reasonably be expected to have a Material Adverse Effect, (b) the cost of which (including any related alteration,
improvement or replacement) is reasonably anticipated to exceed the Alteration Threshold, or (c) that are structural in nature,
except for (x) any alterations performed as a part of a Restoration in accordance with Section 7.4 hereof, (y) any alterations
or tenant improvements being made expressly pursuant to existing Leases that have been reviewed and approved by Lender and (z)
any Immediate Repairs. Notwithstanding the foregoing, Lender’s consent shall not be required in connection with any alterations
that are required to comply with the Franchise Agreement, unless the aggregate cost of such alterations is reasonably anticipated
to exceed five percent (5%) of the original principal amount of the Debt. If the total unpaid amounts incurred and to be incurred
with respect to any alterations to the Improvements (other than such amounts to be paid or reimbursed by Tenants under the Leases)
shall at any time exceed the Alteration Threshold, Borrower shall promptly deliver to Lender as security for the payment of such
amounts and as additional security for Borrower’s obligations under the Loan Documents any of the following: (i) cash, (ii)
U.S. Obligations, (iii) other securities acceptable to Lender (provided that Lender shall have received a Rating Agency Confirmation
as to the form and issuer of same), or (iv) a completion bond (provided that Lender shall have received a Rating Agency Confirmation
as to the form and issuer of same). Such security shall be in an amount equal to the excess of the total unpaid amounts incurred
and to be incurred with respect to such alterations to the Improvements over the Alteration Threshold. All alterations to any Improvements
shall be made lien-free and in a good and workmanlike manner in accordance with all Applicable Laws. Lender shall make such security
available to pay, or to reimburse Borrower or Master Lessee for, the costs of such alterations, in accordance with the disbursement
procedures applicable to disbursements from the Replacement Reserve Funds; and, upon presentation by Borrower or Master Lessee
of satisfactory completion of such alteration in accordance therewith, Lender shall release any remaining portion of such security
to Borrower or Master Lessee, as either of them may direct, provided that no Event of Default has occurred and is continuing.

 

Section 4.22        REA
Covenants.

 

Each of Borrower and Master
Lessee shall (a) promptly perform and/or observe, in all material respects, all of the covenants and agreements required to be
performed and observed by it under any REA and do all things necessary to preserve and to keep unimpaired its material rights thereunder;
(b) promptly notify Lender of any material default under any REA of which it is aware; (c) promptly deliver to Lender a copy of
each financial statement, business plan, capital expenditures plan, notice, report and estimate received by it under any REA; (d)
enforce the performance and observance of all of the covenants and agreements required to be performed and/or observed under any
REA in a commercially reasonable manner; (e) cause the Property to be operated, in all material respects, in accordance with any
REA; and (f) not, without the prior written consent of Lender, (i) enter into any new REA or execute modifications to any existing
REA that impairs, to any material extent, Borrower’s or Master Lessee’s rights thereunder, (ii) surrender, terminate
or cancel any REA that benefits the Property or that would, as a result of such surrender, terminations or cancellation, adversely
affect the Property, Borrower and/or Master Lessee, (iii) reduce or consent to the reduction of the term of any REA that benefits
the Property or that would, as a result of such surrender, terminations or cancellation, adversely affect the Property, Borrower
and/or Master Lessee, (iv) increase or consent to the increase of the amount of any charges payable by Borrower or Master Lessee
under any REA, (v) otherwise modify, change, supplement, alter or amend, or waive or release any of its rights and remedies
under, any REA in any respect materially adverse to Borrower, Master Lessee or the Property, or (vi) following the occurrence and
during the continuance of an Event of Default, exercise any rights, make any decisions, grant any approvals or otherwise take any
action under any REA.

 

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Section 4.23      Material
Agreements.

 

Each of Borrower and Master
Lessee shall (a) promptly perform and/or observe, in all material respects, all of the covenants and agreements required to be
performed and observed by it under the Material Agreements and do all things necessary to preserve and to keep unimpaired its material
rights thereunder; (b) promptly notify Lender of any material default under the Material Agreements of which it is aware; (c) promptly
deliver to Lender a copy of each financial statement, business plan, capital expenditures plan, notice, report and estimate received
by it under the Material Agreements; (d) enforce the performance and observance of all of the covenants and agreements required
to be performed and/or observed under the Material Agreements in a commercially reasonable manner; (e) cause the Property to be
operated, in all material respects, in accordance with the Material Agreements; and (f) not, without the prior written consent
of Lender, (i) enter into any new Material Agreement or execute modifications to any existing Material Agreements that impair,
to any material extent, Borrower’s or Master Lessee’s rights thereunder, (ii) surrender, terminate or cancel any Material
Agreement that benefits the Property or that would, as a result of such surrender, terminations or cancellation, adversely affect
the Property, Borrower and/or Master Lessee, (iii) reduce or consent to the reduction of the term of the Material Agreements that
benefit the Property, or that would, as a result of such reduction, adversely affect the Property, Borrower and/or Master Lessee,
(iv) increase or consent to the increase of the amount of any charges payable by Borrower or Master Lessee under the Material Agreements,
(v) otherwise modify, change, supplement, alter or amend, or waive or release any of its rights and remedies under, the Material
Agreements in any respect materially adverse to Borrower, Master Lessee or the Property, or (vi) following the occurrence and during
the continuance of an Event of Default, exercise any rights, make any decisions, grant any approvals or otherwise take any action
under the Material Agreements.

 

Section 4.24      Master
Lease.

 

(a)         Borrower
shall (a) promptly perform and/or observe in all material respects all of the covenants, agreements and obligations required to
be performed and observed by Borrower under the Master Lease Documents and do all things necessary to preserve and to keep unimpaired
its material rights thereunder; (b) promptly notify Lender of any material default under the Master Lease Documents; (c) upon written
request from Lender, promptly deliver to lender a copy of each financial statement, business plan, capital expenditures plan, notice,
report and estimate received by Borrower under the Master Lease; (d) promptly enforce, in a commercially reasonable manner, the
performance and observance of all of the covenants and agreements required to be performed and/or observed by Master Lessee under
the Master Lease Documents; and (e) upon the occurrence and during the continuance of a Cash Trap Event Period, cause Master Lessee
to deposit or cause to be deposited all Rents and revenues from the Property into the Deposit Account in accordance with the provisions
of the Loan Documents.

 

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(b)        Borrower
shall cause Master Lessee to comply with the affirmative and negative covenants contained in this Agreement as they relate to the
Property, to the operation and maintenance of the Property, and to the requirements of Article 5 hereof as they apply to Master
Lessee, and no Default hereunder shall be excused by virtue of the fact that such Default was caused by Master Lessee.

 

(c)        Borrower
shall use best efforts to cause the Master Lease to remain in effect so long as any portion of the Indebtedness is outstanding.

 

(d)        Notwithstanding
anything to the contrary herein or in any other Loan Documents or in the Master Lease, during the continuance of an Event of Default
(but only after Lender shall have exercised its rights and remedies under the Mortgage), Lender may, at its sole option and regardless
of whether Master Lessee is in default or compliance with the terms of the Master Lease, terminate the Master Lease without payment
of any termination fee, penalty or other amount (the parties hereto agreeing that any such fee, penalty or other amount that may
be payable by Borrower shall be fully subordinate to the Loan, shall not be payable by Borrower while the Loan remains outstanding,
and shall not constitute a claim against Borrower in the event its cash flow is insufficient to pay its obligations).

 

Section 4.25      Matters
Concerning Franchisor. 

 

If (a) the Debt has been
accelerated pursuant to Article 10 hereof, (b) Franchisor shall become insolvent or a debtor in any Bankruptcy
Action or (c) an event of default occurs under the Franchise Agreement, Borrower shall, to the extent permitted under the
Franchise Agreement, at Lender’s request, terminate (or cause Master Lessee to terminate) the Franchise Agreement and replace
Franchisor with a franchisor approved by Lender on terms and conditions satisfactory to Lender, it being understood and agreed
that the franchise fee for such replacement franchisor shall not exceed then prevailing market rates.

 

ARTICLE
5.

ENTITY COVENANTS

 

Section 5.1        Single
Purpose Entity/Separateness.

 

(a)        Neither
Borrower nor Master Lessee has, or, while the Loan is outstanding and undefeased, unless such Person no longer owns any interest
in the Property, will:

 

(i)        engage in
any business or activity other than the ownership, operation and maintenance of the Property, and activities incidental thereto
(including, in the case of Master Lessee, entering into the Master Lease Documents, Hotel Transactions and subleases, operating
agreements or management agreements with third-party operators or managers for the management and operation of the Property);

 

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(ii)       (A) in
the case of Borrower, acquire or own any assets other than (1) the Property, and (2) such incidental Personal Property as may be
necessary for the ownership, leasing, maintenance and operation of the Property, and (B) in the case of Master Lessee, acquire
or own any assets other than (1) its leasehold interest in the Master Lease, and (2) such incidental Personal Property as may be
necessary for the leasing, maintenance and operation of the Property pursuant to the Master Lease;

 

(iii)      merge
into or consolidate with any Person, or dissolve, terminate, liquidate in whole or in part, transfer or otherwise dispose of all
or substantially all of its assets (except as may be expressly permitted by the Loan Documents) or change its legal structure;

 

(iv)      fail to
observe all organizational formalities, or (to the extent that revenues of the Property and available to it are sufficient therefor)
fail to preserve its existence as an entity duly organized, validly existing and in good standing (if applicable) under the Applicable
Law of the jurisdiction of its organization or formation, or amend, modify, terminate or fail to comply with the provisions of
its organizational documents;

 

(v)       except as
otherwise consented to by Lender in writing, own any subsidiary, or make any investment in, any Person;

 

(vi)      except
as required by the Loan Documents, commingle its assets with the assets of any other Person;

 

(vii)     incur
any Indebtedness, secured or unsecured, direct or contingent (including guaranteeing any obligation), other than (A) in the case
of Borrower, the Debt and the Franchise Guaranty, (B) in the case of Master Lessee, its obligations under the Master Lease, (C)
in the case of Borrower and Master Lessee, trade and operational indebtedness incurred in the ordinary course of business with
trade creditors, provided such indebtedness is (1) unsecured, (2) not evidenced by a note, (3) on commercially reasonable terms
and conditions, and (4) due not more than sixty (60) days past the date incurred and paid on or prior to such date (unless
disputed in accordance with applicable law and this Agreement, or unless there does not exist sufficient cash flow from the Property
to do so after the payment of all operating expenses and Debt Service, or, to the extent such cash flow is sufficient and Lender
is then sweeping Excess Cash Flow under the Loan Documents, Lender has not released such funds to Borrower and/or Master Lessee),
(D) Permitted Equipment Leases, and/or (E) such other liabilities as are permitted under the Loan Documents; provided however,
the aggregate amount of the indebtedness described in (C) and (D) shall not exceed at any time two percent (2%) of the original
principal amount of the Debt (unless such maximum amount is breached as a result of non-payment of the liability under the circumstances
described in sub-clause (C)(4) hereinabove) (the Indebtedness described in the foregoing clauses (A) through (E) is referred to
herein, collectively, as “Permitted Indebtedness”). Except pursuant to the Master Lease Documents or another
Loan Document to which Master Lessee is a party, no Indebtedness other than the Debt, and, if applicable, Permitted Equipment Leases,
to the extent of the equipment subject thereto, may be secured (subordinate or pari passu) by the Property;

 

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(viii)    fail
to maintain all of its books, records, financial statements and bank accounts separate from those of its affiliates and any constituent
party, subject to clause (vi) hereinabove. Borrower’s assets have not and will not be listed as assets on the financial statement
of any other Person; provided, however, that Borrower’s assets may be included in a consolidated financial statement of its
affiliates provided that (i) appropriate notation shall be made on such consolidated financial statements to indicate the
separateness of Borrower and such affiliates and to indicate that Borrower’s assets and credit are not available to satisfy
the debts and other obligations of such affiliates or any other Person and (ii) such assets shall be listed on Borrower’s
own separate balance sheet. Borrower has maintained and will maintain its books, records, resolutions and agreements as official
records;

 

(ix)       enter into
any contract or agreement with any general partner, member, shareholder, principal or affiliate, except upon terms and conditions
that are intrinsically fair and substantially similar to those that would be available on an arm’s-length basis with unaffiliated
third parties;

 

(x)        maintain
its assets in such a manner that it will be costly or difficult to segregate, ascertain or identify its individual assets from
those of any other Person;

 

(xi)       assume
or guaranty the debts of any other Person, hold itself out to be responsible for the debts of any other Person, or otherwise pledge
its assets for the benefit of any other Person or hold out its credit as being available to satisfy the obligations of any other
Person, in each case except as permitted pursuant to this Agreement;

 

(xii)      make any
loans or advances to any Person;

 

(xiii)     to the
extent that it is required to file tax returns under Applicable Law, fail to file its own tax returns unless prohibited by Applicable
Law from doing so (except that Borrower may file or may include its filing as part of a consolidated federal tax return, to the
extent required and/or permitted by Applicable Law, provided that there shall be an appropriate notation indicating the separate
existence of Borrower and its assets and liabilities);

 

(xiv)     fail either
to hold itself out to the public as a legal entity separate and distinct from any other Person and not as a division or part of
any other Person or to conduct its business solely in its own name or fail to correct any known misunderstanding regarding its
separate identity;

 

(xv)      fail to
maintain adequate capital for the normal obligations reasonably foreseeable in a business of its size and character and in light
of its contemplated business operations (to the extent there exists sufficient cash flow from the Property to do so after the payment
of all operating expenses and Debt Service and shall not require any equity owner to make additional capital contributions to Borrower);

 

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(xvi)     without
the unanimous written consent of all of its partners or members, as applicable, (a) file or consent to the filing of any petition,
either voluntary or involuntary, to take advantage of any Creditors Rights Laws, (b) seek or consent to the appointment of a receiver,
liquidator or any similar official, (c) take any action that could reasonably be expected to cause such entity to become insolvent,
or (d) make an assignment for the benefit of creditors;

 

(xvii)    fail
to allocate shared expenses (including, without limitation, shared office space) or fail to use separate stationery, invoices and
checks;

 

(xviii)   fail
to remain solvent, to pay its own liabilities (including, without limitation, salaries of its own employees) from its own funds
or fail to maintain a sufficient number of employees in light of its contemplated business operations (in each case, to the extent
there exists sufficient cash flow from the Property to do so);

 

(xix)      acquire
obligations or securities of its partners, members, shareholders or other affiliates, as applicable or identify its partners, members
or shareholders or other affiliates, as applicable, as a division or part of it, provided that no Master Lease Document shall be
deemed to violate this provision; or

 

(xx)       intentionally
omitted.

 

(b)        Lender
acknowledges that the single purpose entity provisions contained in the limited liability company agreements of each of Borrower
and Master Lessee as of the Closing Date satisfy the requirements of a Single Purpose Entity.

 

(c)        If Borrower
is a limited partnership or a limited liability company (other than an Acceptable LLC), each general partner or managing member
(each, an “SPE Component Entity”) shall be a corporation or an Acceptable LLC (I) whose sole asset is its interest
in Borrower, (II) which has not been and shall not be permitted to engage in any business or activity other than owning an
interest in Borrower; (III) which has not been and shall not be permitted to incur any debt, secured or unsecured, direct or contingent
(including guaranteeing any obligation); and (IV) which has and will at all times own at least a 0.5% direct equity ownership interest
in Borrower. Each such SPE Component Entity will at all times comply, and will cause Borrower to comply, with each of the representations,
warranties, and covenants contained in this Article 5 (to the extent applicable) as if such representation, warranty or covenant
was made directly by such SPE Component Entity. Upon the withdrawal or the disassociation of an SPE Component Entity from Borrower,
Borrower shall immediately appoint a new SPE Component Entity whose articles of incorporation or organization are substantially
similar to those of such SPE Component Entity. As of the Closing Date, each of Borrower and Master Lessee is a Delaware single-member
limited liability company that satisfies the requirements of an Acceptable LLC and has no SPE Component Entity.

 

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Section 5.2        Intentionally
Omitted.

 

Section 5.3        Change
of Name, Identity or Structure.

 

Borrower shall not change
(or permit to be changed) Borrower’s, Master Lessee’s or the SPE Component Entity’s (a) name, (b) identity (including
its trade name or names), (c) principal place of business set forth on the first page of this Agreement or, (d) if not an individual,
Borrower’s, Master Lessee’s or the SPE Component Entity’s corporate, partnership or other structure, without
notifying Lender of such change in writing at least thirty (30) days prior to the effective date of such change and, in the case
of a change in Borrower’s, Master Lessee’s or the SPE Component Entity’s structure, without first obtaining the
prior written consent of Lender. Borrower shall execute and deliver (or caused to be executed and delivered) to Lender, prior to
or contemporaneously with the effective date of any such change, any financing statement or financing statement change required
by Lender to establish or maintain the validity, perfection and priority of the security interest granted herein. At the request
of Lender, Borrower shall execute a certificate in form satisfactory to Lender listing the trade names under which Borrower, Master
Lessee or the SPE Component Entity intends to operate the Property, and representing and warranting that Borrower, Master Lessee
or the SPE Component Entity does business under no other trade name with respect to the Property.

 

Section 5.4        Business
and Operations.

 

Each of Borrower and Master
Lessee will continue to engage in the businesses now conducted by it as and to the extent the same are necessary for the ownership,
maintenance, management and operation of the Property. Each of Borrower and Master Lessee will qualify to do business and will
remain in good standing under the laws of the jurisdiction as and to the extent the same are required for the ownership, maintenance,
management and operation of the Property.

 

ARTICLE
6.

NO SALE OR ENCUMBRANCE

 

Section 6.1        Transfer
Definitions.

 

For purposes of this Article
6, “Restricted Party” shall mean (a) Borrower, Guarantor, Master Lessee, any SPE Component Entity, any Affiliated
Manager, any Affiliated Franchisor, and MNOP I, or (b) any shareholder, partner, member or non-member manager, or any direct or
indirect legal or beneficial owner of Borrower, Guarantor, Master Lessee, any SPE Component Entity, any Affiliated Manager, any
Affiliated Franchisor, or MNOP I (other than Moody REIT and other than Persons that are indirect legal or beneficial owners of
Borrower, Guarantor, Master Lessee, any SPE Component Entity, any Affiliated Manager, any Affiliated Franchisor, or MNOP I, solely
by being a shareholder of Moody REIT) or any non-member manager.; and a “Sale or Pledge” shall mean a voluntary
or involuntary sale, conveyance, mortgage, grant, bargain, lien, encumbrance, pledge, assignment, grant of any options with respect
to, or any other transfer or disposition of (directly or indirectly, voluntarily or involuntarily, by operation of law or otherwise,
and whether or not for consideration or of record) a legal or beneficial interest.

 

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Section 6.2        No
Sale/Encumbrance.

 

(a)        Without
the prior written consent of Lender, Borrower shall not cause or permit (i) a Sale or Pledge of the Property or any part thereof
or any legal or beneficial interest therein, (ii) a Sale or Pledge of an interest in any Restricted Party or (iii) any change in
Control of Borrower, Guarantor, Master Lessee, any Affiliated Manager, or any change in control of the day-to-day operations of
the Property (collectively, a “Prohibited Transfer”), other than pursuant to (w) Leases of space in the Improvements
to Tenants in accordance with the provisions of Section 4.14, (x) Hotel Transactions, (y) any Permitted Encumbrances, and
(z) any Permitted Equipment Leases.

 

(b)        A Prohibited
Transfer shall include, but not be limited to, (i) an installment sales agreement wherein Borrower agrees to sell the Property
or any part thereof for a price to be paid in installments; (ii) an agreement by Borrower and/or Master Lessee leasing all or a
substantial part of the Property for other than actual occupancy by a Tenant thereunder or a sale, assignment or other transfer
of, or the grant of a security interest in, Borrower’s or Master Lessee’s right, title and interest in and to (A) any
Leases or any Rents or (B) any REA, any Material Agreements, or the Master Lease (other than pursuant to the Master Documents);
(iii) any action for partition of the Property (or any portion thereof or interest therein) or any similar action instituted or
prosecuted by Borrower, Master Lessee or by any other person or entity, pursuant to any contractual agreement or other instrument
or under Applicable Law (including, without limitation, common law); (iv) any other action instituted by (or at the behest of)
either of Borrower or Master Lessee or any affiliate of Borrower or Master Lessee or consented to or acquiesced in by Borrower
or Master Lessee or any affiliate of Borrower or Master Lessee which results in a termination of an REA in violation of Section
4.22 hereof; (v) if a Restricted Party is a corporation, any merger, consolidation or Sale or Pledge of such corporation’s
stock or the creation or issuance of new stock in one or a series of transactions; (vi) if a Restricted Party is a limited or general
partnership or joint venture, any merger or consolidation or the change, removal, resignation or addition of a general partner
or the Sale or Pledge of the partnership interest of any general or limited partner or any profits or proceeds relating to such
partnership interests or the creation or issuance of new limited partnership interests; (vii) if a Restricted Party is a limited
liability company, any merger or consolidation or the change, removal, resignation or addition of a managing member or non-member
manager (or if no managing member, any member) or the Sale or Pledge of the membership interest of any member or any profits or
proceeds relating to such membership interest; (viii) if a Restricted Party is a trust or nominee trust, any merger, consolidation
or the Sale or Pledge of the legal or beneficial interest in a Restricted Party or the creation or issuance of new legal or beneficial
interests; or (ix) the removal or the resignation of Manager (including, without limitation, an Affiliated Manager) other than
in accordance with Section 4.15.

 

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Section 6.3        Permitted
Equity Transfers.

 

Notwithstanding the restrictions
contained in this Article 6, the following equity transfers shall be permitted without Lender’s consent (each, a “Permitted
Equity Transfer”):

 

(I)        (a) a transfer (but
not a pledge) by devise or descent or by operation of law upon the death of a Restricted Party or any member, partner or shareholder
of a Restricted Party or (b) any transfer, directly as a result of the legal incapacity of a natural person, of stock, membership
interests, partnership interests or other ownership interests previously held by such natural person to the Person or Persons lawfully
entitled thereto; provided, further, that, with respect only to the transfers listed in clauses (a) and/or (b) above, (A) Lender
shall receive written notice of any transfers within thirty (30) days of such transfer, (B) no such transfers shall result in a
change in Control of Guarantor, Master Lessee or Affiliated Manager, (C) after giving effect to such transfers, Guarantor shall
(I) own at least a fifty-one percent (51%) direct or indirect equity ownership interest in each of Borrower, Master Lessee and
any SPE Component Entity; (II) Control Borrower, Master Lessee and any SPE Component Entity; and (III) control the day-to-day operation
of the Property, (D) after giving effect to such transfers, the Property shall continue to be managed by Affiliated Manager or
a New Manager approved in accordance with the applicable terms and conditions hereof and such transfers shall be conditioned upon
continued compliance with the relevant provisions of the Franchise Agreement, (E) in the case of the transfer of any direct equity
ownership interests in Borrower, Master Lessee or in any SPE Component Entity, such transfers shall be conditioned upon continued
compliance with the relevant provisions of Article 5 hereof, (F) intentionally omitted, (G) such transfers shall be conditioned
upon Borrower’s ability to, after giving effect to the equity transfer in question, (I) remake the representations contained
herein relating to ERISA, OFAC and Patriot Act matters (and, upon Lender’s request, Borrower shall deliver to Lender (x)
an Officer’s Certificate containing such updated representations effective as of the date of the consummation of the applicable
equity transfer and (y) searches, acceptable to Lender, for any Person owning, directly or indirectly, 20% or more of the interests
in the Borrower as a result of such transfer) and (II) continue to comply with the covenants contained herein relating to ERISA,
OFAC and Patriot Act matters;

 

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(II)       Lender’s
consent shall not be required in connection with one (1) or a series of equity transfers of up to forty-nine percent (49%) in the
aggregate of the direct or indirect ownership interests in any Restricted Party provided that (a) no Event of Default shall have
occurred and remain uncured or would occur as a result of such transfer, (b) such transfer shall not (i) cause the transferee (together
with its Affiliates) to acquire Control of any Restricted Party unless such transferee is Guarantor, (ii) result in any Restricted
Party that is as of the Closing Date controlled by Guarantor no longer being controlled by Guarantor, or (iii) cause the transferee
(together with its Affiliates) to increase its direct or indirect interest in any Restricted Party to an amount which exceeds forty-nine
percent (49%) in the aggregate, unless such transferee owned more than forty-nine percent (49%) of the direct or indirect ownership
interests in such Restricted Party on the Closing Date or as a result of a transfer previously made in accordance with the terms
and provisions of this Agreement, (c) after giving effect to such transfers, the Property shall continue to be managed by Affiliated
Manager or a New Manager approved in accordance with the applicable terms and conditions hereof and such transfers shall be conditioned
upon continued compliance with the relevant provisions of the Franchise Agreement, (d) after giving effect to such Transfer, Guarantor
shall continue to own, directly or indirectly, at least fifty-one percent (51%) of all legal, beneficial and economic interests
in each of Borrower, Master Lessee and any SPE Component Entity and continue to control the day-to-day operation of the Property,
(e) if, immediately following such Transfer, the transferee owns twenty percent (20%) or more of the direct or indirect ownership
interests in Borrower or Master Lessee then, to the extent such transferee did not own twenty percent (20%) or more of the direct
or indirect ownership interests in Borrower or Master Lessee on the Closing Date, Borrower shall deliver, or cause to be delivered,
at Borrower’s sole cost and expense, such searches (including credit, negative news, OFAC, litigation, judgment, lien and
bankruptcy searches) as Lender may reasonably require with respect to such transferee and its Controlling Persons, the results
of which must be reasonably acceptable to Lender (unless such transferee and Controlling Persons were previously the subject of
searches by Lender which were reasonably acceptable to Lender, in which case Borrower’s obligation to deliver or cause the
delivery of such searches under this Section 6.3(II) shall be satisfied to the extent reasonably acceptable updates to such searches
are delivered to Lender), and such transferee and its Controlling Persons shall otherwise satisfy Lender’s then current applicable
underwriting criteria and requirements, (f) such transfer shall be conditioned upon Borrower’s ability to, after giving effect
to the equity transfer in question, (i) remake the representations contained herein relating to ERISA, OFAC and Patriot Act matters
(and, upon Lender’s request, Borrower shall deliver to Lender an Officer’s Certificate containing such updated representations
effective as of the date of the consummation of the applicable equity transfer) and (ii) continue to comply with the covenants
contained herein relating to ERISA OFAC and Patriot Act matters, (g) Borrower shall give Lender notice of such transfer together
with copies of all instruments effecting such transfer (or final drafts thereof with signed copies to follow upon the effect date
of such transfer) and the organizational documents of the transferee and its constituent parties reasonably required by Lender
not less than thirty (30) days prior to the date of such transfer, (h) the legal and financial structure of Borrower, Master Lessee,
any SPE Component Entity and their respective stockholders, members or partners, as applicable, and the single purpose nature and
bankruptcy remoteness of Borrower, Master Lessee and their respective stockholders, members or partners, as applicable, after such
transfer, shall satisfy Lender’s then current applicable underwriting criteria and requirements (including, without limitation,
the relevant provisions of Article 5 hereof), and (i) such transfers are permitted under the Franchise Agreement. Notwithstanding
anything in this Section 6.3(II) to the contrary, and without limiting any of the foregoing requirements of this Section 6.3(II),
if after giving effect to any such transfer, more than forty-nine percent (49%) in the aggregate of direct or indirect ownership
interests in any Restricted Party are owned by any Person (together with its Affiliates) that owned less than forty-nine percent
(49%) of the direct or indirect ownership interests in such Restricted Party as of the Closing Date or as a result of a transfer
previously made in accordance with the terms and provisions of this Agreement, then Borrower shall, prior to the effective date
of any such Transfer, deliver (or cause to be delivered) to Lender a written confirmation from the applicable Rating Agencies that
such change in ownership will not cause a downgrade, withdrawal or qualification of the then current rating of the Securities or
any class thereof; and

 

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(III)      The sale, issuance,
conveyance, transfer, disposition, alienation, hypothecation, pledge or encumbering of all or any portion of the direct or indirect
ownership interests in Moody REIT (each a “Permitted REIT Transfer”) shall be permitted at any and all times
without (1) Lender’s consent, (2) notice to Lender, or (3) the payment of any fee, premium, penalty or other payment to Lender
other than payment of Lender’s actual out-of-pocket expenses, if any, provided, however, that upon completion of such Permitted
REIT Transfer (a) except with the Lender’s prior written consent, Moody REIT is a Reporting Company, (b) there is no change
of Control of Borrower, Master Lessee, any SPE Component Entity or Moody REIT, (c) no Person together with such Person’s
Affiliates, other than Sponsor and Sponsor’s Affiliates, owns more than forty-nine percent (49%) of the direct or indirect
ownership interests in Moody REIT, (d) Moody REIT continues to own, directly or indirectly, one hundred percent (100%) of the ownership
interests in Borrower and Master Lessee, and (e) Borrower provides to Lender searches, acceptable to Lender, for any Person owning,
directly or indirectly, 20% or more of the interests in Borrower as a result of such transfer.

 

Upon request from Lender,
Borrower shall promptly provide Lender a revised version of the organizational chart delivered to Lender in connection with the
Loan reflecting any equity transfer consummated in accordance with this Section 6.3.

 

Section 6.4        Permitted
Property Transfers (Assumptions).

 

(I)        Notwithstanding
the foregoing provisions of this Article 6, following the date which is twelve (12) months from the Closing Date, Lender shall
not unreasonably withhold consent to up to two (2) transfers of the Property in its entirety to, and the related assumptions of
the Loan by, any Person (a “Transferee”) provided that, with respect to each such transfer, each of the following
terms and conditions are satisfied (each, a “Permitted Property Transfer”):

 

(a)        no Default
or Event of Default has occurred and is continuing;

 

(b)        Borrower
shall have (i) delivered written notice to Lender of the terms of such prospective transfer not less than sixty (60) days before
the date on which such transfer is scheduled to close and, concurrently therewith, all such information concerning the proposed
Transferee as Lender shall reasonably require and (ii) subject to Section 6.4(I)(c)(i) hereof, paid to Lender a non-refundable
processing fee in the amount of $10,000. Lender shall have the right to approve or disapprove the proposed transfer based on its
then current underwriting and credit requirements for similar loans secured by similar properties which loans are sold in the secondary
market, such approval not to be unreasonably withheld. In determining whether to give or withhold its approval of the proposed
transfer, Lender shall consider the experience and track record of Transferee and its principals in owning and operating facilities
similar to the Property, the financial strength of Transferee and its principals, the general business standing of Transferee and
its principals and Transferee’s and its principals’ relationships and experience with contractors, vendors, tenants,
lenders and other business entities; provided, however, that, notwithstanding Lender’s agreement to consider the foregoing
factors in determining whether to give or withhold such approval, such approval shall be given or withheld based on what Lender
determines to be commercially reasonable and, if given, may be given subject to such conditions as Lender may deem reasonably appropriate;

 

(c)        Borrower
shall have paid to Lender, concurrently with the closing of such prospective transfer, (i) a non-refundable assumption fee in an
amount equal to the greater of (y) one percent (1%) of the then outstanding principal balance of the Loan or (z) $15,000 (provided,
however, that in either case, Lender shall credit the $10,000 processing fee payable to Lender pursuant to Section 6.4(I)(b)(ii)
hereof against such amount), (ii) all out-of-pocket costs and expenses, including reasonable attorneys’ fees, incurred by
Lender in connection therewith and (iii) all fees, costs and expenses of all third parties and the Rating Agencies incurred in
connection therewith;

 

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(d)        Transferee
assumes and agrees to pay the Debt as and when due subject to the provisions of Article 13 hereof and, prior to or concurrently
with the closing of such transfer, Transferee and its constituent partners, members, shareholders, affiliates or sponsors as Lender
may require, shall execute, without any cost or expense to Lender, such documents and agreements as Lender shall reasonably require
to evidence and effectuate said assumption and an Affiliate of Transferee reasonably acceptable to Lender shall execute a recourse
guaranty and an environmental indemnity in form and substance identical to the Guaranty and Environmental Indemnity, respectively,
with such changes to each of the foregoing as may be reasonably required by Lender;

 

(e)        Borrower
and Transferee, without any cost to Lender, shall furnish any information requested by Lender for the preparation of, and shall
authorize Lender to file, new financing statements and financing statement amendments and other documents to the fullest extent
permitted by Applicable Law, and shall execute any additional documents reasonably requested by Lender;

 

(f)        Borrower
shall have delivered (or cause to be delivered) to Lender, without any cost or expense to Lender, such endorsements to Lender’s
Title Insurance Policy insuring that fee simple or leasehold title to the Property, as applicable, is vested in Transferee (subject
to Permitted Encumbrances), hazard insurance endorsements or certificates and other similar materials as Lender may deem necessary
at the time of the transfer, all in form and substance satisfactory to Lender;

 

(g)        Transferee
shall have furnished to Lender all appropriate papers evidencing Transferee’s and Qualified Successor Master Lessee’s
organization and good standing, and the qualification of the signers to execute the assumption of the Debt, which papers shall
include certified copies of all documents relating to the organization and formation of Transferee, Qualified Successor Master
Lessee and of the entities, if any, which are partners or members of Transferee and/or Qualified Successor Master Lessee. Transferee,
Qualified Successor Master Lessee, and such constituent partners, members or shareholders of Transferee and/or Qualified Successor
Master Lessee (as the case may be), as Lender shall require, shall comply with the covenants set forth in Article 5 hereof;

 

(h)        Transferee
or Qualified Successor Master Lessee shall assume the obligations of Borrower or Master Lessee, as applicable,under any Management
Agreement or provide a new management agreement with a new manager which meets with the requirements of the Assignment of Management
Agreement and Section 4.15 hereof and assign Borrower (in the case of Qualified Successor Master Lessee) and to Lender (in
the case of Borrower) as additional security such new management agreement;

 

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(i)        the obligations
of Master Lessee under the Master Lease shall have been assumed by a Qualified Successor Master Lessee pursuant to an assumption
agreement, in form and substance reasonably acceptable to Lender, and such Qualified Successor Master Lessee shall have delivered
to Lender all documents reasonably requested by Lender relating to the existence of such Qualified Successor Master Lessee and
the due authorization of such Qualified Master Lessee to assume the obligations under the Master Lease, each in form and substance
reasonably satisfactory to Lender, including a certified copy of the applicable resolutions from all appropriate persons, certified
copies of the organizational documents of the Qualified Successor Master Lessee, together with all amendments thereto, and certificates
of good standing or existence for the Qualified Successor Master Lessee issued as of a recent date by its state of organization
and each other state where such entity, by the nature of its business, is required to qualify or register;

 

(j)        Transferee
shall furnish to Lender one or more opinions of counsel satisfactory to Lender and its counsel (A) that Transferee’s formation
documents provide for the matters described in subparagraph (g) above, (B) that the assumption of the Debt has been duly authorized,
executed and delivered, and that the assumption agreement and the other Loan Documents are valid, binding and enforceable against
Transferee and Qualified Successor Master Lessee in accordance with their terms, (C) that Transferee and Qualified Successor Master
Lessee and any entity which is a controlling stockholder, member or general partner of Transferee, and/or Qualified Successor Master
Lessee have been duly incorporated or formed, as applicable, and are in existence and good standing, (E) that the transfer will
not constitute a “significant modification” of the Loan under Section 1001 of the IRS Code or otherwise cause
a tax to be imposed on a “prohibited transaction” by any REMIC Trust and (F) with respect to such other matters as
Lender may reasonably request;

 

(k)       if required
by Lender, Lender shall have received a Rating Agency Confirmation with respect to such transfer;

 

(l)        if the
Franchise Agreement will be terminated as a result of such Transfer, the Property shall be operated in accordance with a Replacement
Franchise Agreement;

 

(m)      Transferee
shall deposit with Lender such new or increased Reserve Funds as Lender may require, including, without limitation, new or increased
Reserve Funds for taxes, insurance, tenant improvements and leasing commissions, capital expenditures and immediate repairs, and
the amendment of the Loan Documents to require the Transferee to make monthly deposits of such new or increased Reserve Funds for
such purposes thereafter; and

 

(n)        Borrower’s
obligations under the contract of sale pursuant to which the transfer is proposed to occur shall expressly be subject to the satisfaction
of the applicable terms and conditions of this Section 6.4.

 

Notwithstanding the foregoing
or anything herein to the contrary, Borrower may not exercise its rights pursuant to this Section 6.4 during the period that
commences on the date that is sixty (60) days prior to the date of any intended Securitization of the Loan and ending on the date
that is sixty (60) days after the date of such Securitization of the Loan.

 

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(II)        Notwithstanding
any other provision of this Article VI to the contract, Borrower, without the consent of Lender, may grant easements, restrictions,
covenants, reservations and right of way in the ordinary course of business for access, parking, water and sewer lines, telephone
and telegraph lines, electric lines and other utilities or for other similar purposes, provided that no such transfer, conveyance
or encumbrance shall materially impair the utility and operation of the Property or have a Material Adverse Effect. In connection
with any transfer, conveyance or encumbrance permitted in the immediately preceding sentence, the Lender shall execute and deliver
any instrument reasonably necessary or appropriate to evidence its consent to said action or to subordinate the lien of the Security
Instrument to such easements, restrictions, covenants, reservations and rights of way or other similar grants upon receipt by the
Lender of: (A) a copy of the instrument of transfer; and (B) an Officer’s Certificate stating with respect to any transfer
described above, that such transfer does not have a Material Adverse Effect. If Borrower shall receive any consideration in connection
with any of said described transfers or conveyances, Borrower shall have the right to use any such proceeds in connection with
any alterations performed in connection therewith, or required thereby, provided, however, during a Cash Trap Event Period, to
the extent any such proceeds are not used in connection with alterations (or any such proceeds exceeds the amount required to perform
the related alterations), Borrower shall immediately deposit such amount or the remainder thereof, as the case may be, into the
Deposit Account

 

Section 6.5        Lender’s
Rights.

 

Lender reserves the right
to condition the consent to a Prohibited Transfer requested hereunder upon (a) a modification of the terms hereof and on assumption
of this Agreement and the other Loan Documents as so modified by the proposed Prohibited Transfer, (b) payment of a transfer fee
of 1% of outstanding principal balance of the Loan and all of Lender’s expenses incurred in connection with such Prohibited
Transfer, (c) to the extent required by Lender, receipt of a Rating Agency Confirmation with respect to the Prohibited Transfer,
(d) the proposed transferee’s continued compliance with the covenants set forth in this Agreement, including, without limitation,
the covenants in Article 5, (e) intentionally omitted, and/or (f) such other conditions and/or legal opinions as Lender shall determine
in its sole discretion to be in the interest of Lender. All expenses incurred by Lender shall be payable by Borrower whether or
not Lender consents to the Prohibited Transfer. Lender shall not be required to demonstrate any actual impairment of its security
or any increased risk of default hereunder in order to declare the Debt immediately due and payable upon a Prohibited Transfer
without Lender’s consent. This provision shall apply to every Prohibited Transfer, whether or not Lender has consented to
any previous Prohibited Transfer.

 

ARTICLE
7.

INSURANCE; CASUALTY; CONDEMNATION; RESTORATION

 

Section 7.1        Insurance.

 

(a)        Borrower
shall obtain and maintain, or cause to be obtained and maintained, insurance for Borrower, Master Lessee and the Property providing
at least the following coverages:

 

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(i)        insurance
with respect to the Improvements and, if applicable, the Personal Property insuring against any peril now or hereafter included
within the “Special” or “All Risks” Causes of Loss form (which shall not exclude fire, lightning, windstorm
(including named storms), hail, explosion, riot, civil commotion, aircraft, vehicles and smoke), in each case (A) in an amount
equal to 100% of the “Full Replacement Cost,” which for purposes of this Agreement shall mean actual replacement value
exclusive of costs of excavations, foundations, underground utilities and footings waiving of depreciation; (B) to be written on
a no coinsurance form or containing an agreed amount endorsement with respect to the Improvements and, if applicable, Personal
Property waiving all co-insurance provisions; (C) providing for no deductible in excess of $25,000, excluding windstorm and earthquake
insurance which may have a deductible of 5% of the total insurable value; (D) at all times insuring against at least those hazards
that are commonly insured against under a “Special” or “All Risks” Causes of Loss form of policy, as the
same shall exist on the date hereof, and together with any increase in the scope of coverage provided under such form after the
date hereof; and (E) providing Law & Ordinance coverage, including Coverage for Loss to the Undamaged Portion of the Building,
Demolition Costs and Increased Cost of Construction in amounts acceptable to Lender. The Full Replacement Cost shall be re-determined
from time to time (but not more frequently than once in any twelve (12) calendar months) at the request of Lender by an appraiser
or contractor designated and paid by Borrower and approved by Lender, or by an engineer or appraiser in the regular employ of the
insurer. After the first appraisal, additional appraisals may be based on construction cost indices customarily employed in the
trade. No omission on the part of Lender to request any such ascertainment shall relieve Borrower of any of its obligations under
this Subsection;

 

(ii)       commercial
general liability insurance against all claims for personal injury, bodily injury, death or property damage occurring upon, in
or about the Property, including “Dram Shop” or other liquor liability coverage if alcoholic beverages are sold or
distributed from the Property, such insurance (A) to be on the so-called “occurrence” form with a general aggregate
limit of not less than $2,000,000 and a per occurrence limit of not less than $1,000,000; (B) to continue at not less than the
aforesaid limit until required to be changed by Lender in writing by reason of changed economic conditions making such protection
inadequate; and (C) to cover at least the following hazards: (1) premises and operations; (2) products and completed operations
on an “if any” basis; (3) independent contractors; (4) contractual liability for all insured contracts; and (5) contractual
liability covering the indemnities contained in Articles 12 and 13 hereof to the extent the same is available;

 

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(iii)      loss of
rents and/or business interruption insurance (A) with loss payable to Lender; (B) covering all risks required to be covered by
the insurance provided for in Subsections 7.1(a)(i), (iv) and (vi) through (viii); (C) in an amount equal to 100% of the projected
gross income from the Property on an actual loss sustained basis for a period beginning on the date of Casualty and continuing
until the Restoration of the Property is completed, or the expiration of twelve (12) months, whichever first occurs, and notwithstanding
that the policy may expire prior to the end of such period; the amount of such business interruption/loss of rents insurance shall
be determined prior to the Closing Date and at least once each year thereafter based on the greatest of: (x) Borrower’s
reasonable estimate of the gross income from the Property and (y) the highest gross income received during the term of the
Loan for any full calendar year prior to the date the amount of such insurance is being determined, in each case for the succeeding
twelve (12) month period and (D) containing an extended period of indemnity endorsement which provides that after the physical
loss to the Improvements has been repaired, the continued loss of income will be insured until such income either returns to the
same level it was at prior to the loss, or the expiration of six (6) months from the date that the Property is repaired or replaced
and operations are resumed, whichever first occurs, and notwithstanding that the policy may expire prior to the end of such period.
All Net Proceeds payable to Lender pursuant to this Subsection (the “Rent Loss Proceeds”) shall be held by Lender
(x) if no Cash Trap Event Period has occurred and is continuing, in an Eligible Account (which account shall deemed to be included
within the definition of “Accounts”) and (y) upon the occurrence and during the continuance of a Cash Trap Event Period,
in accordance with the terms of the Cash Management Agreement and shall be applied to the obligations secured hereunder from time
to time due and payable hereunder and under the Note; provided, however, that (I) nothing herein contained shall be deemed to relieve
Borrower of its obligations to pay the obligations secured hereunder on the respective dates of payment provided for in the Note
except to the extent such amounts are actually paid out of the Rent Loss Proceeds and (II) in the event the Rent Loss Proceeds
are paid in a lump sum in advance and Borrower is entitled to disbursement of such Rent Loss Proceeds in accordance with the terms
hereof, Lender or Servicer shall hold such Rent Loss Proceeds in a segregated interest-bearing Eligible Account (which account
shall be deemed to be included within the definition of “Accounts”) and Lender or Servicer shall estimate the number
of months required for Borrower to restore the damage caused by the applicable Casualty, shall divide the applicable aggregate
Rent Loss Proceeds by such number of months and shall disburse such monthly installment of Rent Loss Proceeds from such Eligible
Account (x) if no Cash Trap Event Period has occurred and is continuing, to Borrower after Lender’s deduction therefrom of
the amount of Debt Service and deposits into the Reserve Funds then due and payable hereunder and (y) upon the occurrence and during
the continuance of a Cash Trap Event Period, into the Cash Management Account each month during the performance of such Restoration;

 

(iv)      at all
times during which structural construction, repairs or alterations are being made with respect to the Improvements and only if
the current property and liability coverage forms do not otherwise apply (A) commercial general liability and umbrella liability
insurance covering claims related to the construction, repairs or alterations being made at the Property which are not covered
by or under the terms or provisions of the commercial general liability and umbrella liability insurance policies required herein;
and (B) the insurance provided for in Subsection 7.1(a)(i) written in a so-called builder’s risk completed value form (1)
on a non-reporting basis, (2) against all risks insured against pursuant to Subsections 7.1(a)(i), (iv) and (vi) through (viii),
as applicable, (3) including permission to occupy the Property, and (4) written on a no coinsurance form or containing an agreed
amount endorsement waiving co-insurance provisions;

 

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(v)       workers’
compensation, subject to the statutory limits of the state in which the Property is located, and employer’s liability insurance
with a limit of at least $1,000,000 per accident and per disease per employee, and $1,000,000 for disease aggregate in respect
of any work or operations on or about the Property, or in connection with the Property or its operation (if applicable);

 

(vi)      equipment
breakdown/boiler and machinery insurance covering all mechanical and electrical equipment in such amounts as shall be reasonably
be required by Lender, on terms and in amounts consistent with the commercial property insurance policy required under Subsection
7.1(a)(i) above or in such other amount as shall be reasonably required by Lender (if applicable to the Property);

 

(vii)      if any
portion of the Improvements is at any time located in an area identified in the Federal Register by the Federal Emergency Management
Agency or any successor thereto as an area having special flood hazards pursuant to the National Flood Insurance Act of 1968, the
Flood Disaster Protection Act of 1973 or the National Flood Insurance Reform Act of 1994, as each may be amended, or any successor
law (the “Flood Insurance Acts”), flood hazard insurance in an amount equal to “Full Replacement Cost”,
which shall include, without limitation, the maximum limit of coverage available for the Property under the Flood Insurance Acts;
provided, that, the insurance provided pursuant to this clause (vii) shall be on terms consistent with the “All Risk”
insurance policy required in Section 7.1(a)(i) above;

 

(viii)     intentionally
omitted;

 

(ix)        umbrella
liability insurance in an amount not less than $15,000,000 per occurrence on terms consistent with the commercial general liability
insurance policy required under subsection (ii) above;

 

(x)         insurance
against employee dishonesty in amounts acceptable to Lender (if applicable to the Property and Borrower);

 

(xi)        auto liability
coverage for all owned and non-owned vehicles, including rented and leased vehicles containing minimum limits per occurrence of
One Million and No/100 Dollars ($1,000,000) (if applicable);

 

(xii)       intentionally
omitted;

 

(xiii)      intentionally
omitted; and

 

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(xiv)      such other
insurance and in such amounts as Lender from time to time may reasonably request against such other insurable hazards which at
the time are commonly insured against for property similar to the Property located in or around the region in which the Property
is located.

 

(b)        All insurance
provided for in Subsection 7.1(a) hereof shall be obtained under valid and enforceable policies (the “Policies”
or in the singular, the “Policy”), in such forms and, from time to time after the date hereof, in such amounts
as may be satisfactory to Lender, issued by financially sound and responsible insurance companies authorized to do business in
the state in which the Property is located and approved by Lender. The insurance companies must have a financial strength rating
of “A” or better and a financial size category of “VIII” or better by A.M. Best Company, Inc., or
a rating of (i) “A-” or better by S&P, and (ii) if Moody’s rates the insurance company and is designated
by Lender in connection with the Securitization, “A3” or better by Moody’s (each such insurer shall be referred
to below as a “Qualified Insurer”). Not less than five (5) days prior to the expiration dates of the Policies
theretofore furnished to Lender pursuant to Subsection 7.1(a), Borrower shall deliver carrier-issued binders and certificates of
the renewal Policies, and thereafter, complete copies of the Policies (or, in the alternative, the applicable Acord Certificates
together with the applicable “declaration pages” from such Policies) when issued. Upon renewal of the Policies, Borrower
shall deliver evidence satisfactory to Lender of payment of the premiums due thereunder (the “Insurance Premiums”).

 

(c)        Except
to the extent required pursuant to Section 7.1(a) hereof, Borrower shall not obtain (or permit to be obtained) (i) any umbrella
or blanket liability or casualty Policy unless, in each case, such Policy is approved in advance in writing by Lender and Lender’s
interest is included therein as provided in this Agreement and such Policy is issued by a Qualified Insurer, or (ii) separate insurance
concurrent in form or contributing in the event of loss with that required in Subsection 7.1(a) to be furnished by, or which may
be reasonably required to be furnished by, Borrower. In the event Borrower obtains (or causes to be obtained) separate insurance
or an umbrella or a blanket Policy, Borrower shall notify Lender of the same and shall cause complete copies of each Policy (or,
in the alternative, the applicable Acord Certificates together with the applicable “declaration pages” from such Policies)
to be delivered as required in Subsection 7.1(a). Any umbrella or blanket Policy remains subject to review and approval by Lender
based on the schedule of locations and values. Lender approves the blanket Policies and umbrella Policies for which Borrower has
provided evidence to Lender in connection with Lender’s underwriting of the Loan. Notwithstanding Lender’s approval
of any umbrella or blanket liability or casualty Policy hereunder, Lender reserves the right, in its sole discretion, to require
Borrower to obtain a separate Policy in compliance with this Section 7.1.

 

(d)        All Policies
of insurance provided for or contemplated by Subsection 7.1(a) shall name Borrower as the named insured and, in the case of
liability policies, except for the Policies referenced in Subsection 7.1(a)(v) and (xi), shall name Lender as additional insured,
as their respective interests may appear, and in the case of property coverages, including but not limited to the all-risk/special
form coverage, rent loss, business interruption, terrorism, boiler and machinery, earthquake and flood insurance, shall name Lender
as mortgagee/lender’s loss payable by a standard noncontributing mortgagee clause in favor of Lender providing that the loss
thereunder shall be payable to Lender.

 

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(e)        All property
Policies of insurance provided for in Subsection 7.1(a) shall provide that:

 

(i)        no (A) act,
failure to act, violation of warranties, declarations or conditions, or negligence by Borrower, Master Lessee or anyone acting
for Borrower, Master Lessee or by any Tenant under any Lease or other occupant, (B) occupancy or use of the Property for purposes
more hazardous than those permitted, (C) foreclosure or similar action by Lender, or (D) failure to comply with the provisions
of any Policy which might otherwise result in a forfeiture of the insurance or any part thereof, shall in any way affect the validity
or enforceability of the insurance insofar as Lender is concerned;

 

(ii)       the Policy
shall not be cancelled without at least 30 days’ written notice to Lender;

 

(iii)      each Policy
shall provide that (A) the issuers thereof shall give written notice to Lender if the Policy has not been renewed ten (10) days
prior to its expiration and (B) Lender is permitted to make payments to effect the continuation of such Policy upon notice of cancellation
due to non-payment of Insurance Premiums; and

 

(iv)      Lender
shall not be liable for any Insurance Premiums thereon or subject to any assessments thereunder.

 

Additionally, Borrower
further covenants and agrees to promptly send to Lender any notices of non-renewal or cancellation it receives from the insurer
with respect to the Policies required pursuant to this Section 7.1.

 

(f)        Borrower
shall furnish to Lender, on or before thirty (30) days after the close of each of Borrower’s fiscal years, that certain statement
regarding insurance required pursuant to Section 4.12(a)(vii) hereof.

 

(g)        If at
any time Lender is not in receipt of written evidence that all insurance required hereunder is in full force and effect, Lender
shall have the right, without notice to Borrower to take such action as Lender deems necessary to protect its interest in the Property,
including, without limitation, the obtaining of such insurance coverage as Lender in its sole discretion deems appropriate, and
all expenses incurred by Lender in connection with such action or in obtaining such insurance and keeping it in effect shall be
paid by Borrower to Lender upon demand and until paid shall be secured by the Security Instrument and shall bear interest at the
Default Rate.

 

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(h)       In the
event of a foreclosure of the Security Instrument or other transfer of title to the Property in extinguishment in whole or in part
of the Debt, all right, title and interest of Borrower in and to the Policies then in force concerning the Property and all proceeds
payable thereunder shall thereupon vest exclusively in Lender or the purchaser at such foreclosure or other transferee in the event
of such other transfer of title.

 

(i)        As an
alternative to the Policies required to be maintained pursuant to the preceding provisions of this Section 7.1, Borrower will
not be in default under this Section 7.1 if Borrower maintains (or causes to be maintained) Policies which (i) have coverages,
deductibles and/or other related provisions other than those specified above and/or (ii) are provided by insurance companies not
meeting the credit ratings requirements set forth above (any such Policy, a “Non-Conforming Policy”), provided,
that, prior to obtaining such Non-Conforming Policies (or permitting such Non-Conforming Policies to be obtained), (1) Borrower
shall have received Lender’s prior written consent thereto and (2) if required by Lender, confirmed that Lender has received
a Rating Agency confirmation with respect to any such Non-Conforming Policy.

 

(j)        The property,
loss of rents/business interruption, general liability and umbrella liability insurance policies required in this Section 7.1
shall not exclude Terrorism Coverage (defined below) (such insurance policies, the “Applicable Policies”). Such
Terrorism Coverage shall comply with each of the applicable requirements for Policies set forth above (including, without limitation,
those relating to deductibles); provided that, Lender, at Lender’s option, may reasonably require Borrower to obtain or cause
to be obtained the Terrorism Coverage with higher deductibles than set forth above. As used above, “Terrorism Coverage”
shall mean insurance for acts of terror or similar acts of sabotage; provided, that, for so long as the Terrorism Risk Insurance
Act of 2002, as extended and modified by the Terrorism Risk Insurance Program Authorization Act of 2007 (as the same may be further
modified, amended, or extended, “TRIPRA”) (i) remains in full force and effect and (ii) continues to cover both
foreign and domestic acts of terror, the provisions of TRIPRA shall determine what is deemed to be included within this definition
of “Terrorism Coverage.” Notwithstanding the foregoing, whether or not TRIPRA or subsequent statute, extension, or
reauthorization is in effect, Borrower shall be required to carry terrorism insurance throughout the term of the Loan as required
by the preceding sentence; provided, however, if TRIPRA (or such subsequent statute, extension or reauthorization) is not in effect
Borrower shall not be required to pay annual premiums in excess of the TC Cap (defined below) in order to obtain the Terrorism
Coverage (but Borrower shall be obligated to purchase the maximum amount of Terrorism Coverage available with funds equal to the
TC Cap). As used above, “TC Cap” shall mean an amount equal to two (2) times the premium for a separate “Special
Form” or “All Risks” policy or equivalent policy insuring only the Property on a stand-alone basis (including,
without limitation, the insurance required pursuant to Sections 7.1(a)(i) and (iii) hereof) at the time that any Terrorism Coverage
is excluded from any Applicable Policy.

 

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Section 7.2        Casualty.

 

If the Property shall be
damaged or destroyed, in whole or in part, by fire or other casualty (a “Casualty”), Borrower shall give prompt
notice of such damage to Lender and shall promptly commence and diligently prosecute the completion of the repair and restoration
of the Property as nearly as possible to the condition the Property was in immediately prior to such Casualty, with such alterations
as may be reasonably approved by Lender (a “Restoration”) and otherwise in accordance with Section 7.4.
Borrower shall pay all costs of such Restoration whether or not such costs are covered by insurance. Lender may, but shall not
be obligated to make proof of loss if not made promptly by Borrower. Borrower shall have the right to settle all claims under the
Policies in which the Net Proceeds or the costs of completing the Restoration are less than the Restoration Threshold, provided
that (a) no Event of Default exists, (b) Borrower promptly and with commercially reasonable diligence negotiates a settlement of
any such claims and (c) the insurer with respect to the Policy under which such claim is brought has not raised any act of the
insured as a defense to the payment of such claim. Lender may participate in any settlement discussions with any insurance companies
(and shall approve the final settlement, which approval shall not be unreasonably withheld or delayed) with respect to any Casualty
in which the Net Proceeds or the costs of completing the Restoration are equal to or greater than the Restoration Threshold and
Borrower shall deliver to Lender all instruments required by Lender to permit such participation. If an Event of Default exists,
Lender shall, at its election, have the exclusive right to settle or adjust any claims made under the Policies in the event of
a Casualty.

 

Section 7.3        Condemnation.

 

Borrower shall promptly
give Lender notice of the actual or threatened commencement of any proceeding for the Condemnation of the Property of which Borrower
has knowledge and shall deliver to Lender copies of any and all papers served in connection with such proceedings. Lender may participate
in any such proceedings, and Borrower shall from time to time deliver to Lender all instruments requested by it to permit such
participation. Borrower shall, at its expense, diligently prosecute any such proceedings, and shall consult with Lender, its attorneys
and experts, and cooperate with them in the carrying on or defense of any such proceedings. Notwithstanding any taking by any public
or quasi-public authority through Condemnation or otherwise (including but not limited to any transfer made in lieu of or in anticipation
of the exercise of such taking), Borrower shall continue to pay the Debt at the time and in the manner provided for its payment
in the Note and in this Agreement and the Debt shall not be reduced until any Award shall have been actually received and applied
by Lender, after the deduction of expenses of collection, to the reduction or discharge of the Debt. Lender shall not be limited
to the interest paid on the Award by the condemning authority but shall be entitled to receive out of the Award interest at the
rate or rates provided herein or in the Note. If the Property or any portion thereof is taken by a condemning authority, Borrower
shall promptly commence and diligently prosecute the Restoration of the Property and otherwise comply with the provisions of Section 7.4.
If the Property is sold, through foreclosure or otherwise, prior to the receipt by Lender of the Award, Lender shall have the right,
whether or not a deficiency judgment on the Note shall have been sought, recovered or denied, to receive the Award, or a portion
thereof sufficient to pay the Debt.

 

Section 7.4        Restoration.

 

The following provisions
shall apply in connection with the Restoration of the Property:

 

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(a)        If the
Net Proceeds shall be less than the Restoration Threshold and the costs of completing the Restoration shall be less than the Restoration
Threshold, the Net Proceeds will be disbursed by Lender to Borrower upon receipt, provided that all of the conditions set forth
in Section 7.4(b)(i) are met and Borrower delivers to Lender a written undertaking to expeditiously commence and to satisfactorily
complete with due diligence the Restoration in accordance with the terms of this Agreement.

 

(b)        If the
Net Proceeds are equal to or greater than the Restoration Threshold or the costs of completing the Restoration are equal to or
greater than the Restoration Threshold, Lender shall make the Net Proceeds available for the Restoration in accordance with the
provisions of this Section 7.4.

 

(i)          The Net
Proceeds shall be made available for Restoration provided that each of the following conditions are met:

 

(A)        no Event
of Default shall have occurred and be continuing;

 

(B)        (1) in
the event the Net Proceeds are insurance proceeds, less than thirty five percent (35%) of the rentable area of the Property has
been damaged, destroyed or rendered unusable as a result of a Casualty or (2) in the event the Net Proceeds are condemnation proceeds,
less than fifteen percent (15%) of the land constituting the Property is taken, such land is located along the perimeter or periphery
of the Property, no portion of the Improvements is located on such land, and such taking does not materially impair the existing
access to the Property;

 

(C)        intentionally
omitted;

 

(D)        Borrower
shall commence the Restoration as soon as reasonably practicable (but in no event later than thirty (30) days after the issuance
of a building permit with respect thereto) and shall diligently pursue the same to satisfactory completion in compliance with all
Applicable Laws, in all material respects, including, without limitation, all applicable Environmental Laws;

 

(E)        Lender
shall be satisfied that any operating deficits which will be incurred with respect to the Property as a result of the occurrence
of any such fire or other casualty or taking will be covered out of (1) the Net Proceeds, (2) the insurance coverage referred to
in Section 7.1(a)(iii) above, or (3) by other funds of Borrower or Master Lessee;

 

(F)        Lender
shall be satisfied that, upon the completion of the Restoration, the Restoration will not result in a permanent reduction of guest
rooms at the Property and the Actual Debt Service Coverage Ratio, after giving effect to the Restoration, shall be equal to or
greater than 1.40 to 1.0;

 

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(G)        Lender
shall be satisfied that the Restoration will be completed on or before the earliest to occur of (1) six (6) months prior to the
Maturity Date, (2) the expiration of the insurance coverage referred to in Section 7.1(a)(iii) above, (3) such time as may
be required under applicable zoning law, ordinance, rule or regulation in order to repair and restore the Property to the condition
it was in immediately prior to such fire or other casualty or taking, or (4) the earliest date required for such completion under
the terms of the Franchise Agreement, the Master Lease, or any Material Agreement or REA;

 

(H)        the Property
and the use thereof after the Restoration will be in compliance with and permitted under any REA, any Material Agreement and all
Applicable Law;

 

(I)        the Restoration
shall be done and completed in an expeditious and diligent fashion and in compliance with any REA, any Material Agreements and
all Applicable Law;

 

(J)        the Master
Lease and the Franchise Agreement (or a Replacement Franchise Agreement) shall remain in full force and effect during and after
the completion of the Restoration, notwithstanding the occurrence of such Casualty or Condemnation; and

 

(K)        Lender
shall be satisfied that making the Net Proceeds available for Restoration shall be permitted pursuant to REMIC Requirements.

 

(ii)          The Net
Proceeds (and with respect to insurance proceeds, as paid out by the relevant insurer), shall be held by Lender and, until disbursed
in accordance with the provisions of this Section 7.4(b), shall constitute additional security for the Debt and other obligations
under this Agreement, the Security Instrument, the Note and the other Loan Documents. The Net Proceeds (other than the Rent Loss
Proceeds) shall be disbursed by Lender to, or as directed by, Borrower or Master Lessee from time to time during the course of
the Restoration, upon receipt of evidence satisfactory to Lender that (A) all materials installed and work and labor performed
(except to the extent that they are to be paid for out of the requested disbursement or are subject to a Casualty Retainage) in
connection with the related Restoration item have been paid for in full, and (B) there exist no notices of pendency, stop orders,
mechanic’s or materialman’s liens or notices of intention to file same, or any other liens or encumbrances of any nature
whatsoever on the Property which have not either been fully bonded to the satisfaction of Lender and discharged of record or in
the alternative fully insured to the satisfaction of Lender by the title company issuing the Title Insurance Policy.

 

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(iii)        All plans
and specifications required in connection with the Restoration shall be subject to prior review and acceptance in all respects
by Lender and by an independent consulting engineer selected by Lender (the “Casualty Consultant”). All such
plans and specifications and all permits, licenses and approvals required or obtained in connection with the Restoration shall
be assigned to Lender as additional collateral for the Loan and Lender shall have the use of the same. The identity of the contractors,
subcontractors and materialmen engaged in the Restoration in respect of any contract pursuant to which they are to receive compensation
in excess of $100,000 shall be subject to prior review and acceptance by Lender and the Casualty Consultant, such acceptance not
to be unreasonably withheld. All reasonable costs and expenses incurred by Lender in connection with making the Net Proceeds available
for the Restoration including, without limitation, reasonable counsel fees and disbursements and the Casualty Consultant’s
fees, shall be paid by Borrower.

 

(iv)        In no event
shall Lender be obligated to make disbursements of the Net Proceeds in excess of an amount equal to the costs actually incurred
from time to time for work in place as part of the Restoration, as certified by the Casualty Consultant, minus the Restoration
Retainage. The term “Restoration Retainage” as used in this Section 7.4(b) shall mean an amount equal to
10% of the costs actually incurred for work in place as part of the Restoration, as certified by the Casualty Consultant, until
such time as the Casualty Consultant certifies to Lender that Net Proceeds representing 50% of the required Restoration have been
disbursed. There shall be no Restoration Retainage with respect to costs actually incurred by Borrower for work in place in completing
the last 50% of the required Restoration. The Restoration Retainage shall in no event, and notwithstanding anything to the contrary
set forth above in this Section 7.4(b), be less than the amount actually held back by Borrower from contractors, subcontractors
and materialmen engaged in the Restoration. The Restoration Retainage shall not be released until the Casualty Consultant certifies
to Lender that the Restoration has been completed in accordance with the provisions of this Section 7.4(b) and that all approvals
necessary for the re-occupancy and use of the Property have been obtained from all appropriate governmental and quasi-governmental
authorities, and Lender receives evidence satisfactory to Lender that the costs of the Restoration have been paid in full or will
be paid in full out of the Restoration Retainage, provided, however, that Lender will release the portion of the Restoration Retainage
being held with respect to any contractor, subcontractor or materialman engaged in the Restoration as of the date upon which the
Casualty Consultant certifies to Lender that the contractor, subcontractor or materialman has satisfactorily completed all work
and has supplied all materials in accordance with the provisions of the contractor’s, subcontractor’s or materialman’s
contract, and the contractor, subcontractor or materialman delivers the lien waivers (or conditional lien waivers) and evidence
of payment in full, upon application of the funds so released, of all sums due to the contractor, subcontractor or materialman
as may be reasonably requested by Lender or by the title company insuring the lien of the Security Instrument. If required by Lender,
the release of any such portion of the Restoration Retainage shall be approved by the surety company, if any, which has issued
a payment or performance bond with respect to the contractor, subcontractor or materialman.

 

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(v)         Lender shall
not be obligated to make disbursements of the Net Proceeds more frequently than once every calendar month.

 

(vi)        If at any
time the Net Proceeds or the undisbursed balance thereof shall not, in the reasonable opinion of Lender in consultation with the
Casualty Consultant, be sufficient to pay in full the balance of the costs which are estimated by the Casualty Consultant to be
incurred in connection with the completion of the Restoration, Borrower shall deposit (or cause to be deposited) the deficiency
(the “Net Proceeds Deficiency”) with Lender before any further disbursement of the Net Proceeds shall be made.
The Net Proceeds Deficiency deposited with Lender shall be held by Lender and shall be disbursed for costs actually incurred in
connection with the Restoration on the same conditions applicable to the disbursement of the Net Proceeds, and until so disbursed
pursuant to this Section 7.4(b) shall constitute additional security for the Debt and other obligations under this Agreement,
the Security Instrument, the Note and the other Loan Documents.

 

(vii)        The excess,
if any, of the Net Proceeds and the remaining balance, if any, of the Net Proceeds Deficiency deposited with Lender after the Casualty
Consultant certifies to Lender that the Restoration has been completed in accordance with the provisions of this Section 7.4(b),
and the receipt by Lender of evidence satisfactory to Lender that all costs incurred in connection with the Restoration have been
paid in full, shall be remitted by Lender to Borrower, provided no Event of Default shall have occurred and shall be continuing
under this Agreement, the Security Instrument, the Note or any of the other Loan Documents.

 

(c)        All Net
Proceeds not required (i) to be made available for the Restoration or (ii) to be returned to Borrower as excess Net Proceeds pursuant
to Section 7.4(b)(vii) shall be retained and applied by Lender toward the payment of the Debt whether or not then due and
payable in such order, priority and proportions as Lender in its discretion shall deem proper (provided that, other than during
the existence of an Event of Default, no Yield Maintenance Premium or other premium shall be payable in connection therewith).
If Lender shall receive and retain Net Proceeds, the lien of the Security Instrument shall be reduced only by the amount thereof
received and retained by Lender and actually applied by Lender in reduction of the Debt.

 

(d)        Notwithstanding
the foregoing provisions of this Section 7.4 or anything herein to the contrary, this Section 7.4 is subject to the terms
of Section 11.3 hereof to the extent applicable with respect to any Casualty or Condemnation.

 

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ARTICLE
8.

RESERVE FUNDS

 

Section 8.1        Tax
Reserve Funds.

 

(a)        On the
Closing Date, Borrower shall deposit with Lender the amount of $0.00 and Borrower shall deposit on each Monthly Payment Date an
amount equal to one twelfth (1/12th) of the Taxes that Lender estimates will be payable during the next ensuing twelve (12) months
in order to accumulate sufficient funds to pay all such Taxes at least ten (10) days prior to their respective delinquency dates
(the “Monthly Tax Deposit”). Amounts deposited pursuant to this Section 8.1 are referred to herein as the
“Tax Reserve Funds”. The initial estimated Monthly Tax Deposit shall be $28,656. If at any time Lender
reasonably determines that the Tax Reserve Funds will not be sufficient to pay the Taxes, Lender shall notify Borrower of such
determination and the monthly deposits for Taxes shall be increased by the amount that Lender estimates is sufficient to make up
the deficiency at least thirty 30 days prior to the respective delinquency dates for the Taxes; provided that if Borrower receives
notice of any deficiency after the date that is thirty (30) days prior to the date that Taxes are due become delinquent, Borrower
will deposit such amount within one (1) Business Day after its receipt of such notice. All Tax Reserve Funds shall be held by Lender
or Servicer in an Eligible Account (the “Tax Reserve Account”).

 

(b)        Lender
shall have the right to apply the Tax Reserve Funds to payments of Taxes. In making any payment relating to Taxes, Lender may do
so according to any bill, statement or estimate procured from the appropriate public office (with respect to Taxes) without inquiry
into the accuracy of such bill, statement or estimate or into the validity of any tax, assessment, sale, forfeiture, tax lien or
title or claim thereof. If the amount of the Tax Reserve Funds shall exceed the amounts due for Taxes, Lender shall, in its sole
discretion, return any excess to Borrower or credit such excess against future payments to be made to the Tax Reserve Funds. Any
Tax Reserve Funds remaining after the Debt has been paid in full shall be returned to Borrower or Master Lessee, at the direction
of either of them.

 

Section 8.2        Insurance
Reserve Funds.

 

(a)        (i) On
the Closing Date, Borrower shall deposit with Lender the amount of $5,060.96 and Borrower shall deposit on each Monthly Payment
Date an amount equal to one twelfth (1/12th) of the Insurance Premiums that Lender estimates will be payable for the renewal of
the coverage afforded by the Policies upon the expiration thereof in order to accumulate sufficient funds to pay all such Insurance
Premiums at least thirty (30) days prior to the expiration of the Policies (the “Monthly Insurance Deposit”).
The initial estimated Monthly Insurance Deposit shall be $0.00. Amounts deposited pursuant to this Section 8.2 are referred
to herein as the “Insurance Reserve Funds”. If at any time Lender reasonably determines that the Insurance Reserve
Funds will not be sufficient to pay the Insurance Premiums, Lender shall notify Borrower of such determination and the monthly
deposits for Insurance Premiums shall be increased by the amount that Lender estimates is sufficient to make up the deficiency
at least thirty (30) days prior to expiration of the Policies. All Insurance Reserve Funds shall be held by Lender or Servicer
in an Eligible Account (the “Insurance Reserve Account”).

 

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(ii)        Notwithstanding
the foregoing, Borrower shall not be required to make the Monthly Insurance Deposit as set forth above, provided that, (i) no Event
of Default shall have occurred and be continuing, (ii) the Policies maintained by Borrower covering the Property are part of a
blanket or umbrella policy approved by Lender in its reasonable discretion pursuant to Section 7.1 hereof, including, without
limitation, approval of the schedule of locations and values, (iii) Borrower provides Lender evidence of renewal of such Policies
pursuant to Section 7.1 hereof, and (iv) Borrower provides Lender paid receipts for the payment of the Insurance Premiums
by no later than five (5) days prior to the expiration dates of the Policies. Borrower shall immediately commence making all Monthly
Insurance Deposits, as required pursuant to this Section 8.2, on the first Monthly Payment Date following receipt of notice
from Lender of Borrower’s failure to comply with items (i), (ii), (iii) or (iv) above, which such notice shall instruct Borrower
to immediately commence making all Monthly Insurance Deposits.

 

(b)        Lender
shall have the right to apply the Insurance Reserve Funds to payment of Insurance Premiums. In making any payment relating to Insurance
Premiums, Lender may do so according to any bill, statement or estimate procured from the insurer or its agent, without inquiry
into the accuracy of such bill, statement or estimate. If the amount of the Insurance Reserve Funds shall exceed the amounts due
for Insurance Premiums, Lender shall, in its sole discretion, return any excess to Borrower or credit such excess against future
payments to be made to the Insurance Reserve Funds. Any Insurance Reserve Funds remaining after the Debt has been paid in full
shall be returned to Borrower or Master Lessee, at the direction of either of them..

 

Section 8.3        Immediate
Repair Funds.        

 

(a)        Borrower
shall perform (or cause the performance of) the repairs at the Property as set forth on Schedule I hereto (such repairs hereinafter
referred to as “Immediate Repairs”) and shall complete each of the Immediate Repairs on or before the respective
deadline for each repair as set forth on Schedule I hereto; provided that, Lender may, in its sole discretion, extend the respective
deadlines for performance of such Immediate Repairs by written notice to Borrower. On the Closing Date, Borrower shall deposit
with Lender the amount set forth on such Schedule I hereto to perform the Immediate Repairs. Amounts deposited pursuant to this
Section 8.3 are referred to herein as the “Immediate Repair Funds”. All Immediate Repair Funds shall be
held by Lender or Servicer in an Eligible Account (the “Immediate Repair Reserve Account”).

 

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(b)        Provided
no Event of Default has occurred and is continuing, Lender shall disburse Immediate Repair Funds to Borrower within fifteen (15)
Business Days after the delivery by Borrower to Lender of a request therefor (but not more often than once per month), in increments
of at least the Minimum Disbursement Amount (or a lesser amount if the total amount of Immediate Repair Funds is less than the
Minimum Disbursement Amount, 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 Lender): (i) an Officer’s Certificate (A) stating that
the Immediate Repairs (or relevant portion thereof) to be funded by the requested disbursement have been completed in a good and
workmanlike manner and in accordance with all Applicable Law, (B) identifying each Person that supplied materials or labor in connection
with the Immediate Repairs to be funded by the requested disbursement, (C) stating that each such Person has been paid in full
or will be paid in full upon such disbursement, 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,
(D) stating that the Immediate Repairs (or relevant portion thereof) to be funded have not been the subject of a previous disbursement,
and (E) stating that all previous disbursements of for Immediate Repairs have been used to pay the previously identified Immediate
Repairs, (ii) as to any completed Immediate Repair, a copy of any license, permit or other approval by any Governmental Authority
required, if any, in connection with the Immediate Repairs and not previously delivered to Lender, (iii) copies of appropriate
lien waivers (or conditional lien waivers) or other evidence of payment or entitlement to payment satisfactory to Lender, (iv)
at Lender’s option, if the cost of the Immediate Repairs exceeds $100,000 and, in Lender’s sole judgment, any nonpayment
thereof may give rise to a lien on the Property, a title search for the Property indicating that the Property is free from all
Liens, claims and other encumbrances other than Permitted Encumbrances, (v) at Lender’s option, if the cost of the Immediate
Repairs exceeds $25,000 and their nature is such that inspection of such Immediate Repairs by an architect or engineer is reasonably
beneficial to Lender to ensure the satisfactory completion of same, Lender shall have received a report satisfactory to Lender
in its reasonable discretion from an architect or engineer approved by Lender in respect of such architect or engineer’s
inspection of such Immediate Repairs, and (vi) such other evidence as Lender shall reasonably request to demonstrate that the Immediate
Repairs 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. Upon Borrower’s completion of all Immediate Repairs in accordance
with this Section 8.3 and provided no Event of Default has occurred and continuing, Lender shall release any remaining Immediate
Repair Funds, if any, to or at the direction of Borrower.

 

Section 8.4        Replacement
Reserve Funds.

 

(a)        Borrower
shall deposit with Lender on the date hereof $17,684.42 and on each Monthly Payment Date an amount equal to the Replacement Reserve
Monthly Deposit. Amounts deposited pursuant to this Section 8.4 are referred to herein as the “Replacement Reserve
Funds”. Lender may reassess its estimate of the amount necessary for Replacements from time to time (but not more than
once per year) and, and may require Borrower to increase the monthly deposits required pursuant to this Section 8.4 upon thirty
(30) days’ notice to Borrower if Lender determines in its reasonable discretion that an increase is necessary to maintain
proper operation of the Property. All Replacement Reserve Funds shall be held by Lender or Servicer in an Eligible Account (the
“Replacement Reserve Account”).

 

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(b)        Lender
shall disburse Replacement Reserve Funds only for Replacements. Provided no Event of Default has occurred and is continuing, Lender
shall disburse Replacement Reserve Funds to Borrower or Master Lessee, as the case may be, within fifteen (15) Business Days after
the delivery by Borrower or Master Lessee to Lender 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 Replacement 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 Lender): (i) an Officer’s Certificate (A) stating that the items to be funded by the requested
disbursement are Replacements, (B) stating that all Replacements at the Property to be funded by the requested disbursement have
been completed in a good and workmanlike manner and in accordance with all Applicable Law, (C) identifying each Person that supplied
materials or labor in connection with the Replacements 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 purchase of such Replacements (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 Replacements (or relevant portion thereof) to be funded have not been the subject of a previous disbursement,
and (F) stating that all previous disbursements for Replacements have been used to pay the previously identified Replacements,
(ii) as to any completed Replacement, a copy of any license, permit or other approval by any Governmental Authority required, if
any, in connection with the Replacement and not previously delivered to Lender, (iii) copies of appropriate lien waivers (or conditional
lien waivers) or other evidence of payment or entitlement to payment satisfactory to Lender, (iv) at Lender’s option, if
the cost of the Replacements to be funded exceeds $100,000, a title search for the Property indicating that the Property is free
from all Liens, claims and other encumbrances not previously approved by Lender, (v) intentionally omitted, and (vi) such other
evidence as Lender shall reasonably request to demonstrate that the Replacements 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 Lessee, as the case may be.

 

(c)        Nothing
in this Section 8.4 shall (i) make Lender responsible for making or completing the Replacements; (ii) require Lender to expend
funds in addition to the Replacement Reserve Funds to complete any Replacements; (iii) obligate Lender to proceed with the Replacements;
or (iv) obligate Lender to demand from Borrower or Master Lessee additional sums to complete any Replacements.

 

(d)        Borrower
shall permit, and shall cause Master Lessee to permit, Lender and Lender’s agents and representatives (including, without
limitation, Lender’s engineer, architect, or inspector) or third parties to enter onto the Property during normal business
hours (subject to the rights of Tenants under their Leases or hotel guests in respect of Hotel Transactions) to inspect the progress
of any Replacements and all materials being used in connection therewith and to examine all plans and shop drawings relating to
such Replacements. Borrower shall cause, and shall cause Master Lessee to cause, all contractors and subcontractors to cooperate
with Lender or Lender’s representatives or such other Persons described above in connection with inspections described in
this Section.

 

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(e)        In addition
to any insurance required under the Loan Documents, Borrower shall 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 the Replacements. All such policies shall be in form and amount reasonably satisfactory to Lender.

 

Section 8.5        PIP
Reserve Account.

 

(a)        Borrower
shall deposit with Lender on the date hereof $675,428.00 in respect of the PIP Requirements. Amounts deposited pursuant to this
Section 8.5 are referred to herein as the “PIP Reserve Funds” and the account in which such amounts are
held by Lender shall hereinafter be referred to as the “PIP Reserve Account.”

 

(b)        Lender
shall disburse PIP Reserve Funds only for PIP Requirements or upon completion of PIP Requirements. Provided no Event of Default
has occurred and is continuing, Lender shall disburse PIP Reserve Funds to Borrower or Master Lessee, as the case may be, within
fifteen (15) Business Days after the delivery by Borrower or Master Lessee to Lender 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 Lender): (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 Property to be funded
by the requested disbursement have been completed in a good and workmanlike manner and in accordance with all Applicable Law, (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
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 Lender, (iii) copies of appropriate lien waivers (or conditional lien waivers) or other evidence of payment or entitlement
to payment satisfactory to Lender, (iv) at Lender’s option, if the cost of the PIP Requirements to be funded exceeds $100,000,
a title search for the Property indicating that the Property is free from all Liens, claims and other encumbrances not previously
approved by Lender, (v) intentionally omitted, and (vi) such other evidence as Lender 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 Lessee, as the case may be.

 

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(c)        Nothing
in this Section 8.5 shall (i) make Lender responsible for making or completing the PIP Requirements; (ii) require Lender to
expend funds in addition to the PIP Reserve Funds to complete any PIP Requirements; (iii) obligate Lender to proceed with the PIP
Requirements; or (iv) obligate Lender to demand from Borrower or Master Lessee additional sums to complete any PIP Requirements.

 

(d)        Borrower
shall permit, and shall cause Master Lessee to permit, Lender and Lender’s agents and representatives (including, without
limitation, Lender’s engineer, architect, or inspector) or third parties to enter onto the Property during normal business
hours (subject to the rights of Tenants under their Leases or hotel guests in respect of Hotel Transactions) to inspect the progress
of any PIP Requirements and all materials being used in connection therewith and to examine all plans and shop drawings relating
to such PIP Requirements. Borrower shall cause, and shall cause Master Lessee to cause, all contractors and subcontractors to cooperate
with Lender or Lender’s representatives or such other Persons described above in connection with inspections described in
this Section.

 

(e)        In addition
to any insurance required under the Loan Documents, Borrower shall 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 the PIP Requirements. All such policies shall be in form and amount reasonably satisfactory to Lender.

 

(f)        Upon expiration
of the PIP Reserve Period and provided no Event of Default has occurred and continuing, Lender shall release any remaining PIP
Reserve Funds, if any, to or at the direction of Borrower.

 

Section 8.6        The
Accounts Generally.

 

(a)        All Reserve
Funds shall be held in Eligible Accounts. Borrower grants to Lender a first-priority perfected security interest in all of its
right, title and interest in and to each of the Reserve Funds and all sums now or hereafter deposited in the Reserve Funds as additional
security for payment of the Debt (provided that, in the case of the Master Lessee’s Excess Cash Flow (as such term is defined
in the Cash Management Agreement) or other funds belonging to Master Lessee pursuant to Section 5(b) of the Cash Management Agreement,
Borrower collaterally assigns to Lender Borrower’s security interest therein). Until expended or applied in accordance herewith,
the Reserve Funds, to the extent of Borrower’s interest therein, shall constitute additional security for the Debt, and in
the case of Master Lessee’s Excess Cash Flow or other funds belonging to Master Lessee pursuant to Section 5(b) of the Cash
Management Agreement, for the obligations of Master Lessee under the Master Lease. The provisions of this Section 8.6 are
intended to give Lender and/or Servicer “control” of the Reserve Funds within the meaning of the UCC. Each of Borrower
and Master Lessee acknowledges and agrees that the Reserve Funds are subject to the sole dominion, control and discretion of Lender,
its authorized agents or designees, subject to the terms hereof, and neither Borrower nor Master Lessee shall have any right of
withdrawal with respect to any Reserve Funds except with the prior written consent of Lender or as otherwise provided herein. The
Reserve Funds shall not constitute trust funds and may be commingled with other monies held by Lender.

 

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(b)        Borrower
shall not, and shall cause Master Lessee not to, without obtaining the prior written consent of Lender, further pledge, assign
or grant any security interest in the Reserve Funds or permit any lien to attach thereto, or any levy to be made thereon, or authorize
any UCC-1 Financing Statements, except those naming Lender as the secured party, to be filed with respect thereto. Lender shall
have the right to file a financing statement or statements under the UCC in connection with any of the Reserve Funds with respect
thereto in the form required to properly perfect Lender’s security interest therein (which, in the case of any financing
statement filed in respect of Master Lessee, shall identify Borrower as “assignor secured party”). Borrower agrees
that at any time and from time to time, at the expense of Borrower and/or Master Lessee, Borrower will, and shall cause Master
Lessee to, promptly execute and deliver all further instruments and documents, and take all further action, that may be reasonably
necessary or desirable, or that Lender may reasonably request, in order to perfect and protect any security interest granted or
purported to be granted hereby or to enable Lender to exercise and enforce its rights and remedies hereunder with respect to any
Reserve Funds.

 

(c)        Notwithstanding
anything to the contrary contained herein or in any other Loan Document, upon the occurrence and during the continuance of an Event
of Default, without notice from Lender or Servicer (i) neither Borrower nor Master Lessee shall have any rights in respect of the
Reserve Funds and (ii) Lender shall have all rights and remedies with respect to the Accounts and the amounts on deposit therein
and the Reserve Funds as described in this Agreement, the Cash Management Agreement and in the Security Instrument, in addition
to all of the rights and remedies available to a secured party under the UCC, and notwithstanding anything to the contrary contained
in this Agreement, the Cash Management Agreement or in the Security Instrument, may apply the Reserve Funds as Lender determines
in its sole discretion including, but not limited to, payment of the Debt (provided, however, that with respect to Master Lessee’s
Excess Cash Flow or other funds belonging solely to Master Lessee pursuant to Section 5(b) of the Cash Management Agreement, Lender
may only apply such funds upon the acceleration of the Loan by Lender). To the extent of any outstanding obligations of Master
Lessee under the Master Lease, such application shall be deemed to have been paid in respect of such obligations.

 

(d)        The insufficiency
of Reserve Funds on deposit with Lender shall not absolve Borrower of the obligation to make any payments, as and when due pursuant
to this Agreement and the other Loan Documents, and such obligations shall be separate and independent, and not conditioned on
any event or circumstance whatsoever.

 

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(e)        Borrower
shall indemnify Lender and hold Lender harmless from and against any and all actions, suits, claims, demands, liabilities, losses,
damages, obligations and costs and expenses (including litigation costs and reasonable attorneys’ fees and expenses) arising
from or in any way connected with the Reserve Funds, the sums deposited therein or the performance of the obligations for which
the Reserve Funds were established, except to the extent arising from the gross negligence or willful misconduct of Lender, its
agents or employees. Borrower shall assign to Lender all rights and claims Borrower may have against all Persons supplying labor,
materials or other services which are to be paid from or secured by the Reserve Funds; provided, however, that Lender may not pursue
any such right or claim unless an Event of Default has occurred and remains uncured.

 

(f)        Interest
accrued, if any, on the Reserve Funds, other than on the Interest Bearing Reserve Funds, shall not be required to be remitted
to any Account and may instead be retained by Lender. Reserve Funds that are Interest Bearing Reserve Funds shall be held in an
interest-bearing account. In no event shall Lender or any Servicer be required to select any particular interest-bearing account
or the account that yields the highest rate of interest, provided that selection of the account shall be consistent with the general
standards at the time being utilized by Lender or such Servicer, as applicable, in establishing similar accounts for loans of comparable
type. All such interest that so becomes part of the applicable Interest Bearing Reserve Funds shall be disbursed in accordance
with the disbursement procedures contained herein applicable to such Interest Bearing Reserve Funds; provided, however, that Lender
may, at its election, retain any such interest for its own account during the occurrence and continuance of an Event of Default.

 

(g)        Borrower
acknowledges and agrees that it solely shall be, and shall at all times remain, liable to Lender or Servicer for all fees, charges,
costs and expenses in connection with the Reserve Funds, this Agreement and the enforcement hereof, including, without limitation,
any monthly or annual fees or charges as may be assessed by Lender or Servicer in connection with the administration of the Accounts
and the Reserve Funds and the reasonable fees and expenses of legal counsel to Lender and Servicer as needed to enforce, protect
or preserve the rights and remedies of Lender and/or Servicer under this Agreement.

 

ARTICLE
9.

CASH MANAGEMENT AGREEMENT

 

Section 9.1        Cash
Management Agreement.

 

Borrower and Master Lessee
shall enter into the Cash Management Agreement on the date hereof which shall govern the collection, holding and disbursement of
Rents and any other income from the Property during the term of the Loan.

 

Section 9.2        Cash
Flow Sweep.

 

In the event of a Cash
Trap Event Period, all Excess Cash Flow (as defined in the Cash Management Agreement) shall be deposited into the Excess Cash Flow
Subaccount (as defined in the Cash Management Agreement), as more particularly set forth in the Cash Management Agreement.

 

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ARTICLE
10.

EVENTS OF DEFAULT; REMEDIES

 

Section 10.1     Event
of Default.

 

The occurrence of any one
or more of the following events shall constitute an “Event of Default”:

 

(a)        if Borrower
shall fail to (i) pay when due (A) any sums which by the express terms of this Agreement and the other Loan Documents require immediate
or prompt payment without any grace period, (B) any monthly Debt Service and any amount required to be paid into the Reserve Funds,
or (C) any sums which are payable on the Maturity Date, or (ii) pay within five (5) days when due any other sums payable under
this Agreement or any of the other Loan Documents;

 

(b)        if any
of the Taxes or Other Charges are not paid prior to delinquency, unless being contested in accordance with the Loan Documents and
except to the extent sums sufficient to pay such Taxes and Other Charges have been deposited with Lender in accordance with the
terms of this Agreement and Lender’s access to such sums is not restricted or constrained in any manner;

 

(c)        if (i)
the Policies are not kept in full force and effect or (ii) if evidence of the same is not delivered to Lender as provided in Section 7.1
hereof (provided, however, that Borrower shall have the right to cure such failure to deliver to Lender such evidence that the
Polices have been kept in full force and effect by delivering such evidence to Lender within five (5) Business Days of receipt
of notice from Lender);

 

(d)        if any
of the representations or covenants contained in Article 5 hereof are breached or violated;

 

(e)        a Sale
or Pledge occurs that is not a Permitted Transfer;

 

(f)        if any
representation or warranty of, or with respect to, Borrower, Sponsor, Guarantor, Master Lessee or any member, general partner,
principal or beneficial owner of any of the foregoing, made herein, in the Guaranty or in the Environmental Indemnity or in any
other guaranty, or in any certificate, report, financial statement or other instrument or document furnished to Lender shall have
been false or misleading in any material adverse respect when made;

 

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(g)        if (i)
Borrower, any SPE Component Entity, Master Lessee or Guarantor shall commence any case, proceeding or other action (A) under any
Creditors Rights Laws seeking to have an order for relief entered with respect to it, or seeking to adjudicate it a bankrupt or
insolvent, or seeking reorganization, or (B) seeking appointment of a receiver, trustee, custodian, conservator or other similar
official for it or for all or any substantial part of its assets, or Borrower or any managing member or general partner of Borrower,
any SPE Component Entity, Master Lessee or Guarantor shall make a general assignment for the benefit of its creditors; (ii) there
shall be commenced against Borrower or any managing member or general partner of Borrower, any SPE Component Entity, Master Lessee
or Guarantor any case, proceeding or other action of a nature referred to in clause (i) above which (A) results in the entry of
an order for relief or any such adjudication or appointment or (B) remains undismissed, undischarged or unbonded for a period of
sixty (60) days; (iii) there shall be commenced against Borrower, any SPE Component Entity, Master Lessee or Guarantor any case,
proceeding or other action seeking issuance of a warrant of attachment, execution, distraint or similar process against all or
any substantial part of its assets which results in the entry of any order for any such relief which shall not have been vacated,
discharged, or stayed or bonded pending appeal within sixty (60) days from the entry thereof; (iv) Borrower, any SPE Component
Entity, Master Lessee or Guarantor shall take any action in furtherance of, or indicating its consent to, approval of, or acquiescence
in, any of the acts set forth in clause (i), (ii), or (iii) above; or (v) Borrower, any SPE Component Entity, Master Lessee or
Guarantor shall generally not, or shall be unable to, or shall admit in writing in any legal proceeding its inability to, pay its
debts as they become due;

 

(h)        if Borrower
shall be in default beyond applicable notice and grace periods under any other mortgage, deed of trust, deed to secure debt or
other security agreement covering any part of the Property whether it be superior or junior in lien to the Security Instrument;

 

(i)        subject
to Borrower’s right to contest pursuant to Sections 4.5(b) and 4.16(b) hereof, if the Property becomes subject to any mechanic’s,
materialman’s or other lien other than a lien for any Taxes or Other Charges not then delinquent and the lien shall remain
undischarged of record (by payment, bonding or otherwise) for a period of thirty (30) days;

 

(j)        if any
federal tax lien is filed against Borrower, any SPE Component Entity, Guarantor, Master Lessee or the Property and same is not
discharged of record (by payment, bonding or otherwise) within thirty (30) days after same is filed;

 

(k)        if Borrower
shall fail to comply with the covenants in Article 15 or otherwise fails to deliver to Lender, within ten (10) days after request
by Lender, the estoppel certificates required by Section 4.13(a) and (c) hereof (provided that, in any such case, Borrower
shall have the right to cure such failure to deliver within five (5) Business Days of receipt of a second request from Lender);

 

(l)        if any
default occurs under any guaranty or indemnity executed in connection herewith (including, without limitation, the Environmental
Indemnity and/or the Guaranty) and such default continues after the expiration of applicable grace periods, if any;

 

(m)      if a material
default has occurred and continues beyond any applicable cure period under the Franchise Agreement (or any Replacement Franchise
Agreement) and as a result of which default the Franchisor thereunder gives notice of termination or cancellation of the Franchise
Agreement (or any Replacement Franchise Agreement);

 

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(n)        if Borrower
shall fail to deliver, or to cause Master Lessee to deliver, to Lender within thirty (30) days after request by Lender any Required
Financial Item;

 

(o)        if Borrower
or Master Lessee, as applicable, defaults under the Management Agreement beyond the expiration of applicable notice and grace periods,
if any, thereunder and as a result of which default the Manager thereunder gives notice of termination or cancellation of the Management
Agreement or if the Management Agreement is canceled, terminated or surrendered or expires pursuant to its terms, unless in such
case Borrower and/or Master Lessee, as applicable, shall enter into a new management agreement with a Qualified Manager in accordance
with the applicable terms and provisions hereof;

 

(p)        if any
representation and/or covenant herein relating to ERISA matters is breached;

 

(q)        if (i)
Borrower and/or Master Lessee, as applicable, shall fail (beyond any applicable notice or grace period) to pay any charges payable
under any REA or Material Agreement as and when payable thereunder, (ii) Borrower or Master Lessee defaults under any REA or Material
Agreement beyond the expiration of applicable notice and grace periods, if any, thereunder, (iii) any REA or Material Agreements
are amended, supplemented, replaced, restated or otherwise modified without Lender’s prior written consent (to the extent
such consent is required) or if Borrower and/or Master Lessee, as applicable, consents to a transfer of any party’s interest
thereunder without Lender’s prior written consent, or (iv) subject to Section 4.22 and Section 4.23 hereof, any REA or Material
Agreement and/or the estate created thereunder is canceled, rejected, terminated, surrendered or expires pursuant to its terms,
unless in such case Borrower enters into a replacement thereof in accordance with the applicable terms and provisions hereof;

 

(r)        if (A)
an Event of Default (as defined in the Master Lease) occurs under the Master Lease, (B) if any of the Master Lease Documents are
amended, modified or terminated without the prior written consent of Lender, or (C) the Master Lease shall no longer be in effect
for any reason whatsoever, including, without limitation, expiration of the Master Lease by its terms absent renewal or extension
of the Master Lease;

 

(s)        if Borrower
and/or Master Lessee shall continue to be in default under any term, covenant or condition of this Agreement not specified in subsections
(a) through (r) above or not otherwise specifically specified as an Event of Default herein, (i) for more than ten (10) days
after notice from Lender, in the case of any default which can be cured by the payment of a sum of money or (ii) for thirty (30)
days after notice from Lender, in the case of any other default, provided that if such default cannot reasonably be cured within
such thirty (30) day period and Borrower and/or Master Lessee (as applicable) shall have commenced to cure such default within
such thirty (30) day period and thereafter diligently and expeditiously proceeds to cure the same, such thirty (30) day period
shall be extended for so long as it shall require Borrower and/or Master Lessee (as applicable) in the exercise of due diligence
to cure such default, it being agreed that no such extension shall be for a period in excess of ninety (90) days (subject to further
extension by Lender, in Lender’s sole discretion);

 

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(t)        if Borrower
and/or Master Lessee ceases to do business as a hotel at the Property or terminates such business for any reason whatsoever (other
than temporary cessation in connection with any continuous and diligent renovation or restoration of the Property following a Casualty
or Condemnation); and/or

 

(u)        if there
shall be default under any of the other Loan Documents beyond any applicable cure periods contained in such Loan Documents, whether
as to Borrower, Master Lessee or the Property.

 

Section 10.2        Remedies.

 

(a)        Upon the
occurrence and during the continuance of an Event of Default (other than an Event of Default described in Section 10.1(g)
above with respect to Borrower, Master Lessee and SPE Component Entity only) and at any time thereafter Lender may, in addition
to any other rights or remedies available to it pursuant to this Agreement, the Security Instrument, the Note and the other Loan
Documents or at law or in equity, take such action, without notice or demand, that Lender deems advisable to protect and enforce
its rights against Borrower and in the Property, including, without limitation, declaring the Debt to be immediately due and payable,
and Lender may enforce or avail itself of any or all rights or remedies provided in this Agreement, the Security Instrument, the
Note and the other Loan Documents against Borrower and the Property, including, without limitation, all rights or remedies available
at law or in equity. Upon any Event of Default described in Section 10.1(g) above (with respect to Borrower, Master Lessee
and SPE Component Entity only), the Debt and all other obligations of Borrower under this Agreement, the Security Instrument, the
Note and the other Loan Documents shall immediately and automatically become due and payable, without notice or demand, and Borrower
hereby expressly waives any such notice or demand, anything contained herein or in the Security Instrument, the Note and the other
Loan Documents to the contrary notwithstanding.

 

(b)        Upon the
occurrence and during the continuance of an Event of Default, all or any one or more of the rights, powers, privileges and other
remedies available to Lender against Borrower under this Agreement, the Security Instrument, the Note or the other Loan Documents
executed and delivered by, or applicable to, Borrower or at law or in equity may be exercised by Lender at any time and from time
to time, whether or not all or any of the Debt shall be declared due and payable, and whether or not Lender shall have commenced
any foreclosure proceeding or other action for the enforcement of its rights and remedies under this Agreement, the Security Instrument,
the Note or the other Loan Documents with respect to the Property. Any such actions taken by Lender shall be cumulative and concurrent
and may be pursued independently, singularly, successively, together or otherwise, at such time and in such order as Lender may
determine in its sole discretion, to the fullest extent permitted by Applicable Law, without impairing or otherwise affecting the
other rights and remedies of Lender permitted by Applicable Law, equity or contract or as set forth herein or in the Security Instrument,
the Note or the other Loan Documents. No delay or omission to exercise any remedy, right or power accruing upon an Event of Default
shall impair any such remedy, right or power or shall be construed as a waiver thereof, but any such remedy, right or power may
be exercised from time to time and as often as may be deemed expedient. A waiver of one Default or Event of Default with respect
to Borrower shall not be construed to be a waiver of any subsequent Default or Event of Default by Borrower or to impair any remedy,
right or power consequent thereon.

 

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(c)        Upon the
occurrence and during the continuance of an Event of Default, Lender shall have the right from time to time to partially foreclose
the Security Instrument in any manner and for any amounts secured by the Security Instrument then due and payable as determined
by Lender in its sole discretion including, without limitation, the following circumstances: (i) in the event Borrower defaults
beyond any applicable grace period in the payment of one or more scheduled payments of principal and interest, Lender may foreclose
the Security Instrument to recover such delinquent payments, or (ii) in the event Lender elects to accelerate less than the entire
outstanding principal balance of the Loan, Lender may foreclose the Security Instrument to recover so much of the principal balance
of the Loan as Lender may accelerate and such other sums secured by the Security Instrument as Lender may elect. Notwithstanding
one or more partial foreclosures, the Property shall remain subject to the Security Instrument to secure payment of sums secured
by the Security Instrument and not previously recovered.

 

(d)        Upon the
occurrence and during the continuance of an Event of Default, Lender shall have the right from time to time to sever the Note and
the other Loan Documents into one or more separate notes, security instruments and other security documents (the “Severed
Loan Documents”) in such denominations as Lender shall determine in its sole discretion for purposes of evidencing and
enforcing its rights and remedies provided hereunder. Borrower shall execute and deliver to Lender from time to time, promptly
after the request of Lender, a severance agreement and such other documents as Lender shall request in order to effect the severance
described in the preceding sentence, all in form and substance reasonably satisfactory to Lender. Borrower hereby absolutely and
irrevocably appoints Lender as its true and lawful attorney, coupled with an interest, in its name and stead to make and execute
all documents necessary or desirable to effect the aforesaid severance, Borrower ratifying all that its said attorney shall lawfully
do by virtue thereof; provided, however, Lender shall not make or execute any such documents under such power until five (5) Business
Days after notice has been given to Borrower by Lender of Lender’s intent to exercise its rights under such power. Borrower
shall not be obligated to pay any costs or expenses incurred in connection with the preparation, execution, recording or filing
of the Severed Loan Documents and the Severed Loan Documents shall not contain any representations, warranties or covenants not
contained in the Loan Documents and any such representations and warranties contained in the Severed Loan Documents will be given
by Borrower only as of the Closing Date.

 

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(e)        Subject
to Section 5(b) of the Cash Management Agreement, any amounts recovered from the Property or any other collateral for the Loan
after an Event of Default may be applied by Lender toward the payment of any interest and/or principal of the Loan and/or any other
amounts due under the Loan Documents in such order, priority and proportions as Lender in its sole discretion shall determine.

 

(f)        Lender
may, but without any obligation to do so and without notice to or demand on Borrower and without releasing Borrower from any obligation
hereunder or being deemed to have cured any Event of Default hereunder, make, do or perform any obligation of Borrower hereunder
in such manner and to such extent as Lender may deem necessary. Lender is authorized to enter upon the Property for such purposes,
or appear in, defend, or bring any action or proceeding to protect its interest in the Property for such purposes, and the cost
and expense thereof (including reasonable attorneys’ fees to the extent permitted by Applicable Law), with interest as provided
in this Section, shall constitute a portion of the Debt and shall be due and payable to Lender upon demand. All such costs and
expenses incurred by Lender in remedying such Event of Default or such failed payment or act or in appearing in, defending, or
bringing any action or proceeding shall bear interest at the Default Rate, for the period after such cost or expense was incurred
through and including the date of payment to Lender. All such costs and expenses incurred by Lender together with interest thereon
calculated at the Default Rate shall be deemed to constitute a portion of the Debt and be secured by the liens, claims and security
interests provided to Lender under the Loan Documents and shall be immediately due and payable upon demand by Lender therefore.

 

ARTICLE
11.

SECONDARY MARKET

 

Section 11.1     Securitization.

 

(a)        Lender
shall have the right, at Lender’s expense except as otherwise expressly provided herein, (i) to sell or otherwise transfer
the Loan or any portion thereof as a whole loan, (ii) to sell participation interests in the Loan or (iii) to securitize the Loan
or any portion thereof in a single asset securitization or a pooled loan securitization. The transaction referred to in clauses
(i), (ii) and (iii) above shall hereinafter be referred to collectively as “Secondary Market Transactions” and
the transactions referred to in clause (iii) shall hereinafter be referred to as a “Securitization”. Any certificates,
notes or other securities issued in connection with a Securitization are hereinafter referred to as “Securities”.

 

(b)        If requested
by Lender, Borrower shall assist Lender in satisfying the market standards to which Lender customarily adheres or which may be
reasonably required in the marketplace or by the Rating Agencies in connection with any Secondary Market Transactions, including,
without limitation, to:

 

(i)        (A) provide
updated financial and other information with respect to the Property, the business operated at the Property, Borrower, Guarantor,
Sponsor, Master Lessee and Manager, (B) provide updated budgets relating to the Property and (C) provide updated appraisals,
market studies, environmental reviews (Phase I’s and, if appropriate, Phase II’s), property condition reports and other
due diligence investigations of the Property (the “Updated Information”), together, if customary, with appropriate
verification of the Updated Information through letters of auditors or opinions of counsel acceptable the Rating Agencies and reasonably
acceptable to Lender;

 

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(ii)       provide
opinions of counsel, which may be relied upon by Lender, the Rating Agencies and their respective counsel, agents and representatives,
as to non-consolidation, matters of Delaware (or Maryland, as applicable) and federal bankruptcy law relating to limited liability
companies or any other opinion customary in Secondary Market Transactions or required by the Rating Agencies with respect to the
Property, Master Lessee, and Borrower and Borrower’s Affiliates, which counsel and opinions shall be satisfactory in form
and substance to Lender and the Rating Agencies;

 

(iii)      provide
updated, as of the closing date of the Secondary Market Transaction, representations and warranties made in the Loan Documents
and such additional representations and warranties as the Rating Agencies may require; and

 

(iv)      execute
such amendments to the Loan Documents and Borrower, Master Lessee or any SPE Component Entity’s organizational documents
as may be reasonably requested by Lender or requested by the Rating Agencies or otherwise to effect the Securitization including,
without limitation, bifurcation of the Loan into two or more components and/or separate notes and/or creating a senior/subordinate
note structure (any of the foregoing, a “Loan Bifurcation”); provided, however, that Borrower shall not be required
to modify or amend any Loan Document if such modification or amendment would (A) change the interest rate, the stated maturity
or the amortization of principal set forth in the Note, except in connection with a Loan Bifurcation which may result in varying
fixed interest rates and amortization schedules, but which shall have the same initial weighted average coupon of the original
Note, (B) decrease the time periods during which Borrower is permitted to perform its obligations under the Loan Documents, or
(C) modify any other material economic term of the Loan.

 

(c)        Upon request,
Borrower shall furnish (or cause to be furnished) to Lender from time to time such financial data and financial statements as Lender
determines to be necessary, advisable or appropriate for complying with any Applicable Law (including those applicable to Lender
or any Servicer (including, without limitation and to the extent applicable, Regulation AB)) within the timeframes necessary, advisable
or appropriate in order to comply with such Applicable Law.

 

(d)        All reasonable
out of pocket costs and expenses incurred by Borrower and Guarantor in connection with Borrower’s complying with requests
made under this Section 11.1 shall be paid by Lender, except to the extent Borrower or Guarantor are otherwise obligated to provide
any requested information pursuant to the express provisions of any other Article of this Agreement or the other Loan Documents.

 

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Section 11.2     Securitization
Indemnification. 

 

(a)        Borrower
understands that information provided to Lender by Borrower and its agents, counsel and representatives may be included in disclosure
documents in connection with the Securitization, including, without limitation, an offering circular, a prospectus, prospectus
supplement, private placement memorandum or other offering document (each, a “Disclosure Document”) and may
also be included in filings with the Securities and Exchange Commission pursuant to the Securities Act of 1933, as amended (the
“Securities Act”), or the Securities and Exchange Act of 1934, as amended (the “Exchange Act”),
and may be made available to investors or prospective investors in the Securities, the Rating Agencies, and service providers relating
to the Securitization.

 

(b)        Borrower
shall indemnify Lender and its officers, directors, partners, employees, representatives, agents and affiliates against any losses,
claims, damages or liabilities (collectively, the “Liabilities”) to which Lender and/or its officers, directors,
partners, employees, representatives, agents and/or affiliates may become subject in connection with (i) any Disclosure Document
and/or (ii) any information furnished to Lender by or on behalf of Borrower in connection with the underwriting or closing of the
Loan or in connection with the preparation of any Disclosure Document, including, without limitation, financial statements of Borrower,
Master Lessee, operating statements and rent rolls with respect to the Property (collectively, the “Provided Information”),
which Provided Information was furnished to the Rating Agencies in connection with issuing, monitoring and/or maintaining the Securities
(“Covered Rating Agency Information”), in the case of each of clauses (i) and (ii), insofar as (x) such Liabilities
arise out of or are based upon any untrue statement of any material fact in the Provided Information and/or arise out of or are
based upon the omission to state a material fact in the Provided Information required to be stated therein or necessary in order
to make the statements in the applicable Disclosure Document and/or Covered Rating Agency Information, in light of the circumstances
under which they were made, not misleading, and (y) at the time furnished by (or on behalf of) Borrower to Lender, the Provided
Information is known by Borrower, Master Lessee and/or Guarantor to be untrue in any material respect or to omit a material fact
required to be stated in such Provided Information or necessary to make such Provided Information, in light of the circumstances
under which they were made, not misleading.

 

(c)        The liabilities
and obligations of Borrower under this Section 11.2 shall survive the termination of this Agreement and the satisfaction and
discharge of the Debt.

 

Section 11.3     REMIC
Savings Clause.

 

Notwithstanding anything
herein to the contrary, if the Loan is included in a REMIC Trust and, immediately following a release of any portion of the real
property relating to the Property, the ratio of the unpaid principal balance of the Loan to the value of the remaining real property
relating to the Property is greater than 125% (such value to be determined, in Lender’s sole discretion, by any commercially
reasonable method permitted to a REMIC Trust and it being agreed and acknowledged that such loan-to-value determination shall be
based on the value of only real property and shall exclude any personal property or going-concern value, if any), the principal
balance of the Loan must be paid down by Borrower by an amount sufficient to satisfy REMIC Requirements, unless the Lender receives
an opinion of counsel that the Loan will not fail to maintain its status as a “qualified mortgage” within the meaning
of Section 860G(a)(3)(A) of the IRS Code as a result of the related release of lien.

 

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Section 11.4     Servicer.

 

At the option of Lender,
the Loan may be serviced by a servicer/trustee selected by Lender (the “Servicer”) and Lender may delegate all
or any portion of its responsibilities under this Agreement and the other Loan Documents to such servicer/trustee pursuant to a
servicing agreement between Lender and such Servicer; provided, however, Borrower shall not be obligated to pay any monthly servicing
fees to such Servicer.

 

Section 11.5     Rating
Agency Costs.

 

In connection with any
Rating Agency Confirmation or other Rating Agency consent, approval or review required hereunder (other than the initial review
of the Loan by the Rating Agencies in connection with a Securitization), Borrower shall pay all of the costs and expenses of Lender,
Servicer and each Rating Agency in connection therewith, and, if applicable, shall pay any fees imposed by any Rating Agency in
connection therewith.

 

Section 11.6     Intentionally
Omitted.

 

Section 11.7     Intentionally
Omitted.

 

ARTICLE
12.

INDEMNIFICATIONS

 

Section 12.1     General
Indemnification.

 

Borrower shall, at its
sole cost and expense, protect, defend, indemnify, release and hold harmless the Indemnified Parties from and against any and all
actual Losses imposed upon or incurred by or asserted against any Indemnified Parties and directly or indirectly arising out of
or in any way relating to any one or more of the following: (a) any accident, injury to or death of persons or loss of or damage
to property occurring in, on or about the Property or any part thereof or on the adjoining sidewalks, curbs, adjacent property
or adjacent parking areas, streets or ways; (b) any use, nonuse or condition in, on or about the Property or any part thereof or
on the adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets or ways; (c) performance of any labor
or services or the furnishing of any materials or other property in respect of the Property or any part thereof; (d) any failure
of the Property to be in compliance with any Applicable Law; (e) any and all claims and demands whatsoever which may be asserted
against Lender by reason of any alleged obligations or undertakings on its part to perform or discharge any of the terms, covenants,
or agreements contained in any Lease; (f) the payment of any commission, charge or brokerage fee to anyone (other than a broker
or other agent retained by Lender) which may be payable in connection with the funding of the Loan evidenced by the Note and secured
by the Security Instrument; and/or (g) the holding or investing of the funds on deposit in the Accounts or the performance of any
work or the disbursement of funds in each case in connection with the Reserve Funds. Notwithstanding the foregoing, Borrower shall
not be liable to the Indemnified Parties under this Section 12.1 for any Losses to the extent such Losses arise by reason of, and
to the extent attributable to, the gross negligence, illegal acts, fraud or willful misconduct of the Indemnified Parties or Losses
resulting from acts or omissions arising after a completed foreclosure of the Property of acceptance by Lender of a deed in lieu
of foreclosure. Any amounts payable to Indemnified Parties by reason of the application of this Section 12.1 shall become
immediately due and payable and shall bear interest at the Default Rate from the date loss or damage is sustained by Indemnified
Parties until paid.

 

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Section 12.2        Mortgage
and Intangible Tax and Transfer Tax Indemnification.

 

Borrower shall, at its
sole cost and expense, protect, defend, indemnify, release and hold harmless the Indemnified Parties from and against any and all
Losses imposed upon or incurred by or asserted against any Indemnified Parties and directly or indirectly arising out of or in
any way relating to (a) any tax on the making and/or recording of the Security Instrument, the Note or any of the other Loan Documents
(whether due upon the making of same or upon the exercise of its remedies under the Loan Documents), and (b) any transfer tax incurred
by Indemnified Parties in connection with the exercise of remedies hereunder or under any other Loan Documents.

 

Section 12.3        ERISA
Indemnification.

 

Borrower shall, at its
sole cost and expense, protect, defend, indemnify, release and hold harmless the Indemnified Parties from and against any and all
Losses (including, without limitation, reasonable attorneys’ fees and costs incurred in the investigation, defense, and settlement
of Losses incurred in correcting any prohibited transaction or in the sale of a prohibited loan, and in obtaining any individual
prohibited transaction exemption under ERISA that may be required, in Lender’s sole discretion) that Indemnified Parties
may incur, directly or indirectly, as a result of a default under Sections 3.7 or 4.19 of this Agreement.

 

Section 12.4        Duty
to Defend, Legal Fees and Other Fees and Expenses.

 

Upon written request by
any Indemnified Party, Borrower shall defend such Indemnified Party (if requested by any Indemnified Party, in the name of the
Indemnified Party) by attorneys and other professionals approved by the Indemnified Parties. Notwithstanding the foregoing, any
Indemnified Parties may, in their sole discretion, engage their own attorneys and other professionals to defend or assist them,
and, at the option of Indemnified Parties, their attorneys shall control the resolution of any claim or proceeding, provided that
no settlement that does not provide a release of Borrower and its Affiliates shall be entered without Borrower’s consent,
which consent shall not be unreasonably withheld. Upon demand, Borrower shall pay or, in the sole discretion of the Indemnified
Parties, reimburse, the Indemnified Parties for the payment of reasonable fees and disbursements of attorneys, engineers, environmental
consultants, laboratories and other professionals in connection therewith.

 

Section 12.5        Survival.

 

The obligations and liabilities
of Borrower under this Article 12 shall fully survive indefinitely notwithstanding any termination, satisfaction, assignment, entry
of a judgment of foreclosure, exercise of any power of sale, or delivery of a deed in lieu of foreclosure of the Security Instrument.

 

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Section 12.6     Environmental
Indemnity.

 

Simultaneously herewith,
Borrower and Guarantor have executed and delivered the Environmental Indemnity to Lender, which Environmental Indemnity is not
secured by the Security Instrument.

 

ARTICLE
13.

EXCULPATION

 

Section 13.1     Exculpation.

 

(a)        Subject
to the qualifications below, Lender shall not enforce the liability and obligation of Borrower to perform and observe the obligations
contained in the Note, this Agreement, the Security Instrument or the other Loan Documents by any action or proceeding wherein
a money judgment or any deficiency judgment or other judgment establishing personal liability shall be sought against Borrower
or any principal, director, officer, employee, beneficiary, shareholder, partner, member, trustee, agent, or Affiliate of Borrower
(but specifically excluding Guarantor) or any legal representatives, successors or assigns of any of the foregoing (collectively,
the “Exculpated Parties”), except that Lender may bring a foreclosure action, an action for specific performance
or any other appropriate action or proceeding to enable Lender to enforce and realize upon its interest under the Note, this Agreement,
the Security Instrument and the other Loan Documents, or in the Property, the Rents, or any other collateral given to Lender pursuant
to the Loan Documents; provided, however, that, except as specifically provided herein, any judgment in any such action or proceeding
shall be enforceable against Borrower only to the extent of Borrower’s interest in the Property, in the Rents and in any
other collateral given to Lender, and Lender, by accepting the Note, this Agreement, the Security Instrument and the other Loan
Documents, shall not sue for, seek or demand any deficiency judgment against Borrower or any of the Exculpated Parties in any such
action or proceeding under or by reason of or under or in connection with the Note, this Agreement, the Security Instrument or
the other Loan Documents. The provisions of this Section shall not, however, (1) constitute a waiver, release or impairment
of any obligation evidenced or secured by any of the Loan Documents; (2) impair the right of Lender to name Borrower as a party
defendant in any action or suit for foreclosure and sale under the Security Instrument; (3) affect the validity or enforceability
of or any guaranty made in connection with the Loan or any of the rights and remedies of Lender thereunder; (4) impair the right
of Lender to obtain the appointment of a receiver; (5) impair the enforcement of the assignment of leases and rents contained in
the Security Instrument; (6) impair the right of Lender to enforce Section 4.12(e) of this Agreement; (7) constitute a prohibition
against Lender to seek a deficiency judgment against Borrower in order to fully realize the security granted by the Security Instrument
or to commence any other appropriate action or proceeding in order for Lender to exercise its remedies against the Property; or
(8) constitute a waiver of the right of Lender to enforce the liability and obligation of Borrower, by money judgment or otherwise,
to the extent of any Losses incurred by Lender (including attorneys’ fees and costs reasonably incurred) arising out of or
in connection with any of the following:

 

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(i)        fraud or
intentional misrepresentation or any failure to disclose a material fact by Borrower, any SPE Component Entity, Guarantor, Sponsor,
Master Lessee or any Borrower Party in connection with the Loan;

 

(ii)       the gross
negligence or willful misconduct of Borrower, any SPE Component Entity, Guarantor, Sponsor, Master Lessee, or any Borrower Party
or the commission of a criminal act by Borrower, any SPE Component Entity, Guarantor, Sponsor, Master Lessee or any Borrower Party
which results in any seizure or forfeiture of the Property, or any portion thereof, or Borrower’s interest therein;

 

(iii)      material
physical waste to the Property caused by the intentional acts or intentional omissions of Borrower, any SPE Component Entity, Guarantor,
Sponsor, Master Lessee, or any Borrower Party (including, without limitation, any arson or abandonment of the Property) and/or
the removal or disposal of any portion of the Property during the continuation an Event of Default by Borrower, any SPE Component
Entity, Guarantor, Sponsor, Master Lessee, or any Borrower Party, without the replacement of same, to the extent the same is material
to the operation of the Property;

 

(iv)     the misapplication,
misappropriation or conversion by Borrower or Master Lessee of (A) any insurance proceeds paid by reason of any loss, damage or
destruction to the Property, (B) any Awards or other amounts received in connection with the Condemnation of all or a portion of
the Property, (C) any Rents or (D) any Tenant security deposits or Rents collected in advance;

 

(v)       failure
to pay any Taxes or Other Charges, charges for labor or materials or any other charges that can create liens on any portion of
the Property (other than (x) amounts deposited with Lender as Tax Reserve Funds for Taxes or Other Charges where Lender elects
not to apply such funds toward payment of such Taxes or Other Charges owed or (y) Taxes or Other Charges owed that are contested
strictly in accordance with the terms of the Loan Documents) to the extent that the revenue from the Property is sufficient to
pay such amounts as well as other costs of servicing the Debt and of operating the Property;

 

(vi)      failure
to maintain insurance as required by this Agreement (other than the failure to pay amounts deposited with Lender as Insurance Reserve
Funds for Insurance Premiums to be paid to maintain such insurance where Lender elects not to apply such funds toward payment of
such Insurance Premiums) to the extent that the revenue from the Property is sufficient to pay the Insurance Premiums relating
thereto as well as other costs of servicing the Debt and of operating the Property;

 

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(vii)     the breach
of any representation, warranty, covenant or indemnification provision in the Environmental Indemnity, this Agreement or in the
Security Instrument concerning Environmental Laws and Hazardous Substances;

 

(viii)    any fees
or commissions paid by Borrower or Master Lessee after the occurrence and during the continuation of any Event of Default to Guarantor,
Sponsor, Master Lessee, and/or any Affiliate of Borrower, Guarantor, Sponsor and/or Master Lessee in violation of the terms of
the Note, this Agreement, the Security Instrument or the other Loan Documents;

 

(ix)       Borrower’s
breach of, or failure to comply with, the representations, warranties and covenants contained in Sections 15.1 and 15.3 of this
Agreement and/or the provisions of Section 11.2 hereof;

 

(x)        Borrower
or Master Lessee fails to appoint a new property manager upon the request of Lender, each as required by, and in accordance with
the terms and provisions of, this Agreement, the Assignment of Management Agreement and the other Loan Documents or Borrower or
Master Lessee appoints a new property manager or replaces the property manager other than in accordance with the terms of this
Agreement, the Assignment of Management Agreement and the other Loan Documents;

 

(xi)       any litigation
or other legal proceeding related to the Debt filed by Borrower, any SPE Component Entity, Guarantor, Sponsor, Master Lessee or
any Borrower Party that delays, opposes, impedes, obstructs, hinders, enjoins or otherwise interferes with or frustrates the efforts
of Lender to exercise any rights and remedies available to Lender as provided herein and in the other Loan Documents, provided
that neither Borrower nor Guarantor shall be liable to the extent of any applicable loss, damage, cost, expense, liability, claim
or other obligation arising solely from a defense of Borrower, Guarantor or any Affiliate of Borrower or Guarantor raised in good
faith;

 

(xii)      any representation,
warranty or covenant contained in Section 5.1 or Section 5.3 hereof is violated or breached;

 

(xiii)     Borrower
and/or Master Lessee fails to comply with the Cash Management Agreement relating to the establishment of a Deposit Account (as
defined in the Cash Management Agreement), a Cash Management Account, and/or the institution of cash management generally;

 

(xiv)     Borrower’s
failure to deposit any initial springing Reserve Fund deposit required pursuant to this Agreement;

 

(xv)      if, in
connection with any transfer of the Property to Lender (or Lender’s designee) in full or partial satisfaction of the Debt,
Borrower or any affiliate of Borrower fails to take any lawful action reasonably necessary to effect the transfer of any licenses
or permits with respect to the Property from the then-current holder thereof to the transferee of the Property or its designee;
and/or

 

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(xvi)     any amendment,
modification or termination of the Master Lease without Lender’s consent.

 

Notwithstanding anything
to the contrary in this Agreement, the Note or any of the Loan Documents, (A) Lender shall not be deemed to have waived any right
which Lender may have under Section 506(a), 506(b), 1111(b) or any other provisions of the Bankruptcy Code to file a claim
for the full amount of the Debt or to require that all collateral shall continue to secure all of the Debt owing to Lender in accordance
with the Loan Documents, and (B) the Debt shall be fully recourse to Borrower in the event that: (i) any representation, warranty
or covenant contained in Article 5 hereof is violated or breached, and such violation or breach is cited as a factor in the substantive
consolidation of Borrower with any other person (unless such failure results solely from the economic performance of the Property);
(ii) if Borrower fails to obtain Lender’s prior written consent to any voluntary Sale or Pledge encumbering the Property
for which Lender’s consent is required hereunder; (iii) Borrower, Master Lessee or any SPE Component Entity files a voluntary
petition under the Bankruptcy Code or any other Creditors Rights Laws; (iv) an Affiliate, officer, director, or representative
which Controls, directly or indirectly, Borrower, Master Lessee or any SPE Component Entity files, or joins in the filing of, an
involuntary petition against Borrower, Master Lessee or any SPE Component Entity under the Bankruptcy Code or any other Creditors
Rights Laws, or solicits or causes to be solicited petitioning creditors for any involuntary petition against Borrower, Master
Lessee or any SPE Component Entity from any Person; (v) Borrower, Master Lessee or any SPE Component Entity files an answer consenting
to or otherwise acquiescing in or joining in any involuntary petition filed against it, by any other Person under the Bankruptcy
Code or any other Creditors Rights Laws, or solicits or causes to be solicited petitioning creditors for any involuntary petition
from any Person; (vi) any Affiliate, officer, director, or representative which Controls Borrower, Master Lessee or any SPE
Component Entity consents to or acquiesces in or joins in an application for the appointment of a custodian, receiver, trustee,
or examiner for Borrower, Master Lessee, any SPE Component Entity or any portion of the Property; (vii) Borrower, Master Lessee
or any SPE Component Entity makes an assignment for the benefit of creditors or admits in any legal proceeding its insolvency or
inability to pay its debts as they become due; (viii) there is substantive consolidation of Borrower, Master Lessee or any SPE
Component Entity (or any Restricted Party) with any other Person in connection with any federal or state bankruptcy proceeding
involving the Guarantor or any of its Affiliates and one of the factors cited as the bases therefor is a breach by Borrower or
Master Lessee of any representation, warranty or covenant contained in Sections 5.1 and/or 5.3 hereof; (ix) intentionally omitted;
(x) there occurs any voluntary cancellation, surrender, or termination of the Franchise Agreement by Borrower and/or Master Lessee
without the prior written consent of Lender unless a Replacement Franchise Agreement is entered into concurrently with such termination
in accordance with this Agreement, or (xi) Borrower and/or Master Lessee amends or modifies the Franchise Agreement without the
prior written consent of Lender (to the extent such consent is required under the Loan Documents).

 

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Section 13.2        Survival.

 

The obligations and liabilities
of Borrower under this Article 13 shall fully survive indefinitely notwithstanding any termination, satisfaction, assignment, entry
of a judgment of foreclosure, exercise of any power of sale, or delivery of a deed in lieu of foreclosure of the Security Instrument.

 

ARTICLE
14.

NOTICES

 

Section 14.1        Notices.

 

All notices or other written
communications hereunder shall be deemed to have been properly given (a) upon delivery, if delivered in person or by facsimile
transmission with receipt acknowledged by the recipient thereof and confirmed by telephone by sender, (b) one (1) Business
Day after having been deposited for overnight delivery with any reputable overnight courier service, or (c) three (3) Business
Days after having been deposited in any post office or mail depository regularly maintained by the U.S. Postal Service and sent
by registered or certified mail, postage prepaid, return receipt requested, addressed as follows:

 

		If to Borrower:	Moody National Research-Austin Holding, LLC

6363 Woodway, Suite 110

Houston, Texas 77057

Attention: Brett C. Moody

Facsimile No.: (713) 997-7505
	 	 	 
	 	With a copy to:	Gresham
Savage Nolan & Tilden, PC

501 W. Broadway, Suite 800

San Diego, California 92101

Attention: Jerome A. Grossman

Facsimile No.: (619) 615-2180
	 	 	 
	 	If to Lender:	Wells
Fargo Bank, National Association

Wells Fargo Center

1901 Harrison Street, 2nd Floor

MAC A0227-020

Oakland, California 94612

Attention: Commercial Mortgage Servicing

Facsimile No.: 866-359-5352
	 	 	 
	 	With a copy to:	Katten
Muchin Rosenman LLP

550 South Tryon Street, Suite 2900

Charlotte, North Carolina 28202

Attention: Daniel S. Huffenus

 

or addressed as such party
may from time to time designate by written notice to the other parties.

 

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Either party by notice
to the other may designate additional or different addresses for subsequent notices or communications.

 

ARTICLE
15.

FURTHER ASSURANCES

 

Section 15.1        Replacement
Documents.

 

Upon receipt of an affidavit
of an officer of Lender as to the loss, theft, destruction or mutilation of the Note, this Agreement or any of the other Loan Documents
which is not of public record, and, in the case of any such mutilation, upon surrender and cancellation of the Note, this Agreement
or such other Loan Document, Borrower will issue, in lieu thereof, a replacement thereof, dated the date of the Note, this Agreement
or such other Loan Document, as applicable, in the same principal amount thereof and otherwise of like tenor.

 

Section 15.2        Recording
of Security Instrument, etc.

 

Borrower forthwith upon
the execution and delivery of the Security Instrument and thereafter, from time to time as directed by Lender, will cause the Security
Instrument and any of the other Loan Documents creating a lien or security interest or evidencing the lien hereof upon the Property
and each instrument of further assurance to be filed, registered or recorded in such manner and in such places as may be required
by any present or future law in order to publish notice of and fully to protect and perfect the lien or security interest hereof
upon, and the interest of Lender in, the Property. Borrower will pay all taxes, filing, registration or recording fees, and all
expenses incident to the preparation, execution, acknowledgment and/or recording of the Note, the Security Instrument, this Agreement,
the other Loan Documents, any note, deed of trust or mortgage supplemental hereto, any security instrument with respect to the
Property and any instrument of further assurance, and any modification or amendment of the foregoing documents, and all federal,
state, county and municipal taxes, duties, imposts, assessments and charges arising out of or in connection with the execution
and delivery of the Security Instrument, any deed of trust or mortgage supplemental hereto, any security instrument with respect
to the Property or any instrument of further assurance, and any modification or amendment of the foregoing documents, except where
prohibited by Applicable Law so to do.

 

Section 15.3        Further
Acts, etc.

 

Each of Borrower and Master
Lessee will, at the cost of Borrower and/or Master Lessee, and without expense to Lender, do, execute, acknowledge and deliver
all and every further acts, deeds, conveyances, deeds of trust, mortgages, assignments, notices of assignments, transfers and assurances
(including, without limitation, the execution and delivery of all such writings necessary to transfer any liquor licenses with
respect to the Property into the name of Lender or its designee after the occurrence of an Event of Default) as Lender shall, from
time to time, reasonably require, for the better assuring, conveying, assigning, transferring, and confirming unto Lender the property
and rights hereby mortgaged, deeded, granted, bargained, sold, conveyed, confirmed, pledged, assigned, warranted and transferred
or intended now or hereafter so to be, or which Borrower and/or Master Lessee may be or may hereafter become bound to convey or
assign to Lender, or for carrying out the intention or facilitating the performance of the terms of this Agreement or for filing,
registering or recording the Security Instrument, or for complying with all Applicable Law. Each of Borrower and/or Master Lessee,
on demand and as applicable, will execute and deliver, and in the event it shall fail to so execute and deliver, hereby authorizes
Lender to execute in the name of Borrower or Master Lessee or without the signature of Borrower or Master Lessee to the extent
Lender may lawfully do so, one or more financing statements to evidence more effectively the security interest of Lender in the
Property. Each of Borrower and Master Lessee grants to Lender an irrevocable power of attorney coupled with an interest for the
purpose of exercising and perfecting any and all rights and remedies available to Lender at law and in equity, including without
limitation, such rights and remedies available to Lender pursuant to this Section 15.3.

 

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Section 15.4     Changes
in Tax, Debt, Credit and Documentary Stamp Laws.

 

(a)        If any
law is enacted or adopted or amended after the date of this Agreement which deducts the Debt from the value of the Property for
the purpose of taxation and which imposes a tax, either directly or indirectly, on the Debt or Lender’s interest in the Property,
Borrower will pay the tax, with interest and penalties thereon, if any. If Lender is advised by counsel chosen by it that the payment
of tax by Borrower would be unlawful or taxable to Lender or unenforceable or provide the basis for a defense of usury then Lender
shall have the option by written notice of not less than ninety (90) days to declare the Debt immediately due and payable.

 

(b)        Borrower
will not claim or demand or be entitled to any credit or credits on account of the Debt for any part of the Taxes or Other Charges
assessed against the Property, or any part thereof, and no deduction shall otherwise be made or claimed from the assessed value
of the Property, or any part thereof, for real estate tax purposes by reason of the Security Instrument or the Debt. If such claim,
credit or deduction shall be required by Applicable Law, Lender shall have the option, by written notice of not less than ninety
(90) days, to declare the Debt immediately due and payable. No Yield Maintenance Premium shall be due in connection with any prepayment
made pursuant to this Section 15.4(b).

 

(c)        If at
any time the United States of America, any State thereof or any subdivision of any such State shall require revenue or other stamps
to be affixed to the Note, the Security Instrument, or any of the other Loan Documents or impose any other tax or charge on the
same, Borrower will pay for the same, with interest and penalties thereon, if any.

 

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ARTICLE
16.

WAIVERS

 

Section 16.1     Remedies
Cumulative; Waivers.

 

The rights, powers and
remedies of Lender under this Agreement shall be cumulative and not exclusive of any other right, power or remedy which Lender
may have against Borrower or Master Lessee pursuant to this Agreement, the Security Instrument, the Note or the other Loan Documents,
or existing at law or in equity or otherwise. Lender’s rights, powers and remedies may be pursued singularly, concurrently
or otherwise, at such time and in such order as Lender may determine in Lender’s sole discretion. No delay or omission to
exercise any remedy, right or power accruing upon an Event of Default shall impair any such remedy, right or power or shall be
construed as a waiver thereof, but any such remedy, right or power may be exercised from time to time and as often as may be deemed
expedient. A waiver of one Default or Event of Default with respect to Borrower shall not be construed to be a waiver of any subsequent
Default or Event of Default by Borrower or to impair any remedy, right or power consequent thereon.

 

Section 16.2     Modification,
Waiver in Writing.

 

No modification, amendment,
extension, discharge, termination or waiver of any provision of this Agreement, the Security Instrument, the Note and the other
Loan Documents, nor consent to any departure by Borrower therefrom, shall in any event be effective unless the same shall be in
a writing signed by the party against whom enforcement is sought, and then such waiver or consent shall be effective only in the
specific instance, and for the purpose, for which given. Except as otherwise expressly provided herein, no notice to, or demand
on Borrower, shall entitle Borrower to any other or future notice or demand in the same, similar or other circumstances.

 

Section 16.3     Delay
Not a Waiver.

 

Neither any failure nor
any delay on the part of Lender in insisting upon strict performance of any term, condition, covenant or agreement, or exercising
any right, power, remedy or privilege under this Agreement, the Security Instrument, the Note or the other Loan Documents, or any
other instrument given as security therefor, shall operate as or constitute a waiver thereof, nor shall a single or partial exercise
thereof preclude any other future exercise, or the exercise of any other right, power, remedy or privilege. In particular, and
not by way of limitation, by accepting payment after the due date of any amount payable under this Agreement, the Security Instrument,
the Note or the other Loan Documents, Lender shall not be deemed to have waived any right either to require prompt payment when
due of all other amounts due under this Agreement, the Security Instrument, the Note and the other Loan Documents, or to declare
a default for failure to effect prompt payment of any such other amount.

 

Section 16.4     Waiver
of Trial by Jury.

 

TO THE EXTENT PERMITTED
BY APPLICABLE LAW, BORROWER, MASTER LESSEE (BY EXECUTION OF THE MASTER LEASE SUBORDINATION AGREEMENT) AND LENDER, BY ACCEPTANCE
OF THIS AGREEMENT, HEREBY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING
OR COUNTERCLAIM, WHETHER IN CONTRACT, TORT OR OTHERWISE, RELATING DIRECTLY OR INDIRECTLY TO THE LOAN, THE APPLICATION FOR THE LOAN,
THIS AGREEMENT, THE NOTE, THE SECURITY INSTRUMENT OR THE OTHER LOAN DOCUMENTS OR ANY ACTS OR OMISSIONS OF LENDER OR BORROWER.

 

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Section 16.5     Waiver
of Notice.

 

Neither Borrower nor Master
Lessee shall be entitled to any notices of any nature whatsoever from Lender except (a) with respect to matters for which this
Agreement or another Loan Document specifically and expressly provides for the giving of notice by Lender to Borrower and/or Master
Lessee, as applicable, and (b) with respect to matters for which Lender is required by Applicable Law to give notice, and Borrower
and/or Master Lessee hereby expressly waives the right to receive any notice from Lender with respect to any matter for which this
Agreement does not specifically and expressly provide for the giving of notice by Lender to Borrower and/or Master Lessee, as applicable.

 

Section 16.6     Remedies
of Borrower and Master Lessee.

 

In the event that a claim
or adjudication is made that Lender or its agents have acted unreasonably or unreasonably delayed acting in any case where by Applicable
Law or under this Agreement, the Security Instrument, the Note and the other Loan Documents, Lender or such agent, as the case
may be, has an obligation to act reasonably or promptly, each of Borrower and Master Lessee agrees that neither Lender nor its
agents shall be liable for any monetary damages, and Borrower’s and/or Master Lessee’s sole remedies shall be limited
to commencing an action seeking injunctive relief or declaratory judgment. The parties hereto agree that any action or proceeding
to determine whether Lender has acted reasonably shall be determined by an action seeking declaratory judgment. Lender agrees that,
in such event, it shall cooperate in expediting any action seeking injunctive relief or declaratory judgment.

 

Section 16.7     Marshalling
and Other Matters.

 

Borrower hereby waives,
to the extent permitted by Applicable Law, the benefit of all appraisement, valuation, stay, extension, reinstatement and redemption
laws now or hereafter in force and all rights of marshalling in the event of any sale under the Security Instrument of the Property
or any part thereof or any interest therein. Further, Borrower hereby expressly waives any and all rights of redemption from sale
under any order or decree of foreclosure of the Security Instrument on behalf of Borrower, and on behalf of each and every person
acquiring any interest in or title to the Property subsequent to the date of the Security Instrument and on behalf of all persons
to the extent permitted by Applicable Law.

 

Section 16.8     Waiver
of Statute of Limitations.

 

To the extent permitted
by Applicable Law, each of Borrower and Master Lessee (by its execution of the Master Lease Subordination Agreement) hereby expressly
waives and releases to the fullest extent permitted by Applicable Law, the pleading of any statute of limitations as a defense
to payment of the Debt or performance of its obligations hereunder, under the Note, Security Instrument or other Loan Documents.

 

Section 16.9     Waiver
of Counterclaim.

 

Each of Borrower and Master
Lessee (by its execution of the Master Lease Subordination Agreement) hereby waives the right to assert a counterclaim, other than
a compulsory counterclaim, in any action or proceeding brought against it by Lender or its agents.

 

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Section 16.10   Sole
Discretion of Lender.

 

(a)        Wherever
pursuant to this Agreement (a) Lender exercises any right given to it to approve or disapprove, (b) any arrangement or term is
to be satisfactory to Lender, or (c) any other decision or determination is to be made by Lender, the decision to approve or disapprove
all decisions that arrangements or terms are satisfactory or not satisfactory, and all other decisions and determinations made
by Lender, shall be in the sole discretion of Lender, except as may be otherwise expressly and specifically provided herein. Prior
to a Securitization, whenever pursuant to this Agreement or any other Loan Document the Rating Agencies are given any right to
approve or disapprove any matter, or any arrangement or term is to be satisfactory to the Rating Agencies, to the extent not already
required, the decision of Lender to approve or disapprove such matter or to decide whether arrangements or terms are satisfactory
or not satisfactory, shall be substituted therefor.

 

ARTICLE
17.

MISCELLANEOUS

 

Section 17.1     Survival.

 

This Agreement and all
covenants, agreements, representations and warranties made herein and in the certificates delivered pursuant hereto shall survive
the making by Lender of the Loan and the execution and delivery to Lender of the Note, and shall continue in full force and effect
so long as all or any of the Debt is outstanding and unpaid (or, in the case of a defeasance, defeased) unless a longer period
is expressly set forth in this Agreement, the Security Instrument, the Note or the other Loan Documents. Whenever in this Agreement
any of the parties hereto is referred to, such reference shall be deemed to include the legal representatives, successors and assigns
of such party. All covenants, promises and agreements in this Agreement, by or on behalf of Borrower and Master Lessee, shall inure
to the benefit of the legal representatives, successors and assigns of Lender.

 

Section 17.2     Governing
Law.

 

This Agreement shall be
governed, construed, applied and enforced in accordance with the Applicable Laws of the State and Applicable Laws of the United
States of America.

 

Section 17.3     Headings.

 

The Article and/or Section headings
in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any
other purpose.

 

Section 17.4     Severability.

 

Wherever possible, each
provision of this Agreement shall be interpreted in such manner as to be effective and valid under Applicable Law, but if any provision
of this Agreement shall be prohibited by or invalid under Applicable Law, such provision shall be ineffective to the extent of
such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement.

 

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Section 17.5     Preferences.

 

Lender shall have the continuing
and exclusive right to apply or reverse and reapply any and all payments by Borrower received during the continuation of any Event
of Default to any portion of the obligations of Borrower hereunder. To the extent Borrower makes a payment or payments to Lender,
which payment or proceeds or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside
or required to be repaid to a trustee, receiver or any other party under any Creditors Rights Laws, state or federal law, common
law or equitable cause, then, to the extent of such payment or proceeds received, the obligations hereunder or part thereof intended
to be satisfied shall be revived and continue in full force and effect, as if such payment or proceeds had not been received by
Lender.

 

Section 17.6     Expenses.

 

Except to the extent otherwise
expressly provided in Article 11 hereof, Borrower shall, within ten (10) Business Days of demand, pay Lender all reasonable, out-of-pocket
costs and expenses incurred by Lender in connection with: (a) the preparation, negotiation, execution and delivery of this Agreement
and all of the other Loan Documents; (b) the administration of this Agreement and the other Loan Documents for the term of
the Loan and any modifications and amendments, if any, of this Agreement or any of the other Loan Documents; (c) the processing
of any Borrower requests made hereunder and under any of the other Loan Documents; (d) the enforcement of any remedies hereunder
or under the other Loan Documents or the satisfaction by Lender of any of Borrower’s, Master Lessee’s or Guarantor’s
obligations under this Agreement and the other Loan Documents; (e) enforcing or preserving any rights, in response to third party
claims or the prosecuting or defending of any action or proceeding or other litigation, in each case against, under or affecting
Borrower, Master Lessee, this Agreement, the Security Instrument, the Note, the other Loan Documents, the Property, or any other
security given for the Loan; and (f) otherwise protecting Lender’s interests under this Agreement and any other Loan Document,
including, without limitation, in connection with any “work-out” of the Loan or any bankruptcy, insolvency, receivership,
reorganization, rehabilitation, liquidation or other similar proceeding in respect of Borrower, SPE Component Entity, Master Lessee
or Guarantor or an assignment by Borrower, SPE Component Entity, Master Lessee or Guarantor for the benefit of its creditors. For
all purposes of this Agreement and the other Loan Documents, Lender’s costs and expenses as described above shall also include,
without limitation, all appraisal fees, engineering and architect costs and inspection fees, reasonable legal fees and expenses,
accounting fees, fees for the disbursement of any Reserve Funds, environmental and other consultant fees, auditor fees, and the
cost to Lender of any title insurance premiums and title company charges (including for down dates, abstracts, tax certificates,
title insurance endorsements required by Lender, and UCC financing statements, tax lien and litigation searches), surveys, recording,
reconveyance and notary fees, any transfer and mortgage taxes, any Rating Agency fees and expenses, and any loan servicing and
special servicing fees and expenses (including, without limitation, any “work-out” and/or liquidation fees, but excluding
any monthly servicing fees). Borrower shall not be liable for the payment of any such costs and expenses to the extent the same
arise by reason of the gross negligence, illegal acts, fraud or willful misconduct of Lender. Borrower recognizes and agrees that
formal written appraisals of the Property by a licensed independent appraiser may be required by Lender’s internal procedures
and/or federal regulatory reporting requirements on an annual and/or specialized basis and that Lender may, at its option, require
inspection of the Property by an independent supervising architect and/or cost engineering specialist at least semiannually. Notwithstanding
the foregoing, Borrower shall not be required to pay for more than one appraisal in any twelve (12) month period unless an Event
of Default occurs and is continuing or as otherwise required by law. Additionally, if Borrower and/or Master Lessee is undertaking
a Restoration or is performing work that requires the obtaining of a building permit, then Borrower shall pay the reasonable out-of-pocket
costs of architects, engineers and other consultants retained by Lender to review the performance of such Restoration or work.
Any amounts payable to Lender pursuant to this Section 17.6 shall become immediately due and payable upon written demand and,
if the same is not paid within ten (10) Business Days from such written demand, shall bear interest at the Default Rate from the
date which is ten (10) Business Days from such written demand until the date such amounts have been paid.

 

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Section 17.7     Cost
of Enforcement.

 

In the event (a) that the
Security Instrument is foreclosed in whole or in part, (b) of the bankruptcy, insolvency, rehabilitation or other similar proceeding
in respect of Borrower, Master Lessee or any of its constituent Persons or an assignment by Borrower or Master Lessee or any of
their respective constituent Persons for the benefit of its creditors, or (c) Lender exercises any of its other remedies under
this Agreement, the Security Instrument, the Note and the other Loan Documents, Borrower shall be chargeable with and agrees to
pay all costs of collection and defense, including attorneys’ fees and costs, incurred by Lender or Borrower in connection
therewith and in connection with any appellate proceeding or post judgment action involved therein, together with all required
service or use taxes. Any amounts payable to Lender pursuant to this Section 17.7 shall become immediately due and payable
upon written demand and, if the same is not paid within ten (10) Business Days from such written demand, shall bear interest at
the Default Rate from the date which is ten (10) Business Days from such written demand until the date such amounts have been
paid.

 

Section 17.8     Exhibits
and Schedules Incorporated.

 

The Exhibits and Schedules
annexed hereto are hereby incorporated herein as a part of this Agreement with the same effect as if set forth in the body hereof.

 

Section 17.9     Offsets,
Counterclaims and Defenses.

 

Any assignee of Lender’s
interest in and to this Agreement, the Security Instrument, the Note and the other Loan Documents shall take the same free and
clear of all offsets, counterclaims or defenses which are unrelated to such documents which Borrower or may otherwise have against
any assignor of such documents, and no such unrelated counterclaim or defense shall be interposed or asserted by Borrower in any
action or proceeding brought by any such assignee upon such documents and any such right to interpose or assert any such unrelated
offset, counterclaim or defense in any such action or proceeding is hereby expressly waived by Borrower.

 

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Section 17.10   No
Joint Venture or Partnership; No Third Party Beneficiaries.

 

(a)        Borrower
and Lender intend that the relationships created under this Agreement, the Security Instrument, the Note and the other Loan Documents
be solely that of borrower and lender. Nothing herein or therein is intended to create a joint venture, partnership, tenancy-in-common,
or joint tenancy relationship between Borrower and Lender or to grant Lender any interest in the Property other than that of mortgagee,
beneficiary or lender.

 

(b)        This Agreement,
the Security Instrument, the Note and the other Loan Documents are solely for the benefit of Lender, Borrower and the other Persons
party thereto and nothing contained in this Agreement, the Security Instrument, the Note or the other Loan Documents shall be deemed
to confer upon anyone other than Lender and Borrower, or another Party to any Loan Document, any right to insist upon or to enforce
the performance or observance of any of the obligations contained herein or therein. All conditions to the obligations of Lender
to make the Loan hereunder are imposed solely and exclusively for the benefit of Lender and no other Person shall have standing
to require satisfaction of such conditions in accordance with their terms or be entitled to assume that Lender will refuse to make
the Loan 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 or all of which may be freely waived in whole or in part by Lender if, in Lender’s
sole discretion, Lender deems it advisable or desirable to do so.

 

(c)        The general
partners, members, principals and (if Borrower is a trust) beneficial owners of Borrower are experienced in the ownership and operation
of properties similar to the Property, and Borrower and Lender are relying solely upon such expertise and business plan in connection
with the ownership and operation of the Property. Borrower is not relying on Lender’s expertise, business acumen or advice
in connection with the Property.

 

(d)        Notwithstanding
anything to the contrary contained herein, Lender is not undertaking the performance of (i) any obligations under the Leases; or
(ii) any obligations with respect to such agreements, contracts, certificates, instruments, franchises, permits, trademarks, licenses
and other documents.

 

(e)        By accepting
or approving anything required to be observed, performed or fulfilled or to be given to Lender pursuant to this Agreement, the
Security Instrument, the Note or the other Loan Documents, including, without limitation, any officer’s certificate, balance
sheet, statement of profit and loss or other financial statement, survey, appraisal, or insurance policy, Lender shall not be deemed
to have warranted, consented to, or affirmed the sufficiency, the legality or effectiveness of same, and such acceptance or approval
thereof shall not constitute any warranty or affirmation with respect thereto by Lender.

 

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(f)        Borrower
recognizes and acknowledges that in accepting this Agreement, the Note, the Security Instrument and the other Loan Documents, Lender
is expressly and primarily relying on the truth and accuracy of the representations and warranties set forth in Article 3 of this
Agreement without any obligation to investigate the Property and notwithstanding any investigation of the Property by Lender; that
such reliance existed on the part of Lender prior to the date hereof, that the warranties and representations are a material inducement
to Lender in making the Loan; and that Lender would not be willing to make the Loan and accept the this Agreement, the Note, the
Security Instrument and the other Loan Documents in the absence of the warranties and representations as set forth in Article 3
of this Agreement.

 

(g)        Borrower
authorizes Lender to act upon any direction it receives from Master Lessee incident to the Loan Documents with respect to matters
for which Master Lessee has responsibility pursuant to the Master Lease Documents (including, without limitation, with respect
to requests for, and the application of, disbursements from any Reserve Fund), and, as between Lender and Borrower, agrees to be
bound by any such direction.

 

Section 17.11   Publicity;
Advertising.

 

(a)        All news
releases, publicity or advertising by Borrower or its Affiliates through any media intended to reach the general public which refers
to this Agreement, the Note, the Security Instrument or the other Loan Documents or the financing evidenced by this Agreement,
the Note, the Security Instrument or the other Loan Documents, to Lender or any of its Affiliates shall be subject to the prior
written approval of Lender, not to be unreasonably withheld.

 

(b)        Borrower
hereby agrees that Lender and its affiliated entities, including, without limitation, Wells Fargo & Company and its subsidiaries,
may publicly identify details of the Loan in their respective advertising and public communications of all kinds, including, but
not limited to, press releases, direct mail, newspapers, magazines, journals, e-mail or internet advertising or communications.
Such details may include the name of the Property, the address of the Property, the amount of the Loan, the Closing Date, and a
description of the size and location of the Property.

 

Section 17.12   Conflict;
Construction of Documents; Reliance.

 

In the event of any conflict
between the provisions of this Agreement and the Security Instrument, the Note or any of the other Loan Documents, the provisions
of this Agreement shall control. Wherever the phrase “during the continuance of an Event of Default” or the like appears
herein or in any other Loan Document, such phrase shall not mean or imply that Lender has any obligation to accept a cure of such
Event of Default. The parties hereto acknowledge that they were represented by competent counsel in connection with the negotiation,
drafting and execution of this Agreement, the Note, the Security Instrument and the other Loan Documents and this Agreement, the
Note, the Security Instrument and the other Loan Documents shall not be subject to the principle of construing their meaning against
the party which drafted same. Borrower acknowledges that, with respect to the Loan, Borrower shall rely solely on its own judgment
and advisors in entering into the Loan without relying in any manner on any statements, representations or recommendations of Lender
or any parent, subsidiary or Affiliate of Lender. Lender shall not be subject to any limitation whatsoever in the exercise of any
rights or remedies available to it under this Agreement, the Note, the Security Instrument and the other Loan Documents or any
other agreements or instruments which govern the Loan by virtue of the ownership by it or any parent, subsidiary or Affiliate of
Lender of any equity interest any of them may acquire in Borrower, and Borrower hereby irrevocably waives the right to raise any
defense or take any action on the basis of the foregoing with respect to Lender’s exercise of any such rights or remedies.
Borrower acknowledges that Lender engages in the business of real estate financings and other real estate transactions and investments
which may be viewed as adverse-to or competitive with the business of Borrower or its Affiliates.

 

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Section 17.13   Entire
Agreement.

 

This Agreement, the Note,
the Security Instrument and the other Loan Documents contain the entire agreement of the parties hereto and thereto in respect
of the transactions contemplated hereby and thereby, and all prior agreements among or between such parties, whether oral or written
between Borrower and Lender are superseded by the terms of this Agreement, the Note, the Security Instrument and the other Loan
Documents.

 

Section 17.14   Liability.

 

If Borrower consists of
more than one person, the obligations and liabilities of each such person hereunder shall be joint and several. This Agreement
shall be binding upon and inure to the benefit of Borrower and Lender and their respective successors and assigns forever.

 

Section 17.15   Duplicate
Originals; Counterparts.

 

This Agreement may be executed
in any number of duplicate originals and each duplicate original shall be deemed to be an original. The failure of any party hereto
to execute this Agreement, or any counterpart hereof, shall not relieve the other signatories from their obligations hereunder.

 

Section 17.16   Post-Closing
Matters. Borrower covenants and agrees to deliver to Lender (I) on or before ninety (90)
days of the date hereof, (a) evidence reasonably satisfactory to Lender that Borrower has caused the striping two (2) additional
handicap parking spaces to the Property, (b) a revised survey of the Property, in form and substance reasonably satisfactory to
Lender, evidencing the addition of such two (2) handicap parking spaces to the Property, and (c) a final zoning report from Zoning-Info,
Inc. indicating that the Property and use of the Property is legal conforming and provides evidence reasonably satisfactory to
Lender that the addition of such two (2) handicap parking spaces addresses the requirements of the American Disability Act with
respect to parking, and (II) on or before one hundred eighty (180) days of the date hereof, evidence reasonably satisfactory to
Lender that Master Lessee and/or Property Manager (as applicable) has obtained all permits and/or licenses required to be issued
by the Texas Alcoholic Beverage Commission or otherwise in order to sell alcoholic beverages at the Property.

 

[NO FURTHER TEXT ON THIS PAGE]

 

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IN WITNESS WHEREOF,
the parties hereto have caused this Loan Agreement to be duly executed by their duly authorized representatives, all as of the
day and year first above written.

 

	 	BORROWER:
	 	 	 
	 	MOODY NATIONAL RESEARCH-AUSTIN HOLDING,
LLC, a Delaware limited liability company
	 	 	 
	 	By:	/s/ Brett C. Moody
	 	 	Name: Brett C. Moody
	 	 	Title:

 

    	 

    	 

    

 

	 	LENDER:
	 	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION
	 	 	 
	 	By:	/s/ John G. Nicol
	 	 	Name: John G. Nicol
	 	 	Title:

 

    	 

    	 

    

 

EXHIBIT A

 

ADDITIONAL DEFINITIONS

 

“Actual Debt Service Coverage
Ratio” means as of the last day of the calendar month immediately preceding the applicable date of calculation, the quotient
obtained by dividing (1) the Adjusted Net Cash Flow by (2) the aggregate amount of Debt Service projected to be due and payable
over the twelve (12) month period subsequent to the date of calculation (which, for the avoidance of doubt, shall be calculated
using a thirty (30) year amortization schedule). Borrower shall deliver (and shall cause Master Lessee to deliver) to Lender such
information as is reasonably required for Lender to make all applicable calculations. Lender’s calculation of the Actual
Debt Service Coverage Ratio, and all component calculations, shall be conclusive and binding on Borrower absent demonstrable error.

 

“Adjusted Net Cash Flow”
means Underwritten NOI minus normalized expenditures for costs and expenses related to movable furniture, fixtures or equipment
that have no permanent structural connection to the applicable building at the Property (“FF&E”) equal to
the greater of (a) 4% of Underwritten Revenue and (b) projected forward 12-month FF&E expenditures based on Borrower’s
budget.

 

“Underwritten NOI”
means Underwritten Revenue minus Underwritten Operating Expenses.

 

INCOME

 

“Underwritten Revenue”
means Room Revenue plus F&B Revenue plus Telephone Revenue plus Parking Revenue plus Other Revenue.

 

“Room Revenue”
means the product of (a) ADR and (b) Total Occupied Rooms.

 

“ADR” means the
average daily rate actually charged at the Property over the trailing 12-month period.

 

“Total Occupied Rooms”
means the product of (a) 365 (or 366 if the applicable period includes February 29), (b) the total number of rooms at the Property
(which at the time of closing is 138), and (c) the least of (i) the actual occupancy percentage at the Property over the trailing
12-month period and (iii) 85%.

 

“F&B Revenue”
means the actual food and beverage revenue as determined from the most recent operating statement for the Property at the time
of determination, to the extent such revenue is deemed recurring and sustainable, determined on a trailing 12-month basis, computed
in accordance with accounting principles reasonably acceptable to Lender; provided, however, that in no event will F&B Revenue
exceed 5% of Underwritten Revenue.

 

    	A-1

    	 

    

 

“Telephone Revenue”
means the actual telephone revenue as determined from the most recent operating statement for the Property at the time of determination,
to the extent such revenue is deemed recurring and sustainable, determined on a trailing 12-month basis, computed in accordance
with accounting principles reasonably acceptable to Lender.

 

“Other
Revenue” means all other applicable income (including, without limitation, any income derived from the Master Lease)
as determined from the most recent operating statement for the Property at the time of determination, to the extent such income
is deemed recurring and sustainable, determined on a trailing 12-month basis, computed in accordance with accounting principles
reasonably acceptable to Lender; provided, however, that in no event will Other Revenue exceed 2.5% of Underwritten Revenue. Notwithstanding
the foregoing, Other Income will not include Insurance Proceeds (other than proceeds of rent loss, business interruption or other
similar insurance allocable to the applicable period); Condemnation Proceeds (other than Condemnation Proceeds arising from a temporary
taking or the use and occupancy of all or part of the applicable Property allocable to the applicable period); proceeds of any
financing; proceeds of any sale, exchange or transfer of the Property or any part thereof or interest therein (including proceeds
of any sales of furniture, fixtures and equipment); capital contributions or loans to Borrower or an Affiliate of Borrower; where
applicable, any item of income otherwise includable in Other Income but paid directly by any tenant to a Person other than Borrower;
any other extraordinary, non-recurring revenues; where applicable, payments paid by or on behalf of any tenant under a Lease which
is the subject of any proceeding or action relating to its bankruptcy, reorganization or other arrangement pursuant to the Bankruptcy
Code or any similar federal or state law or which has been adjudicated a bankrupt or insolvent unless such Lease has been affirmed
by the trustee in such proceeding or action pursuant to a final, non-appealable order of a court of competent jurisdiction; where
applicable, payments paid by or on behalf of any tenant under a Lease the demised premises of which are not occupied either by
such tenant or an affiliate or sublessee thereof; where applicable, payments paid by or on behalf of any tenant under a Lease in
whole or partial consideration for the termination of any Lease; sales tax rebates from any Governmental Authority; sales, use
and occupancy taxes on receipts required to be accounted for by Borrower to any Governmental Authority; refunds and uncollectible
accounts; interest income from any source; where applicable, unforfeited security deposits, utility and other similar deposits;
where applicable, income from tenants not paying rent; or any disbursements to Borrower from the Reserve Funds.

 

EXPENSES

 

“Underwritten Operating
Expenses” means projected annualized Operating Expenses based on a trailing 12-month period adjusted upwards or downwards
in Lender’s reasonable discretion by anticipated changes in Operating Expenses.

 

“Operating Expenses”
means the sum of (a) Departmental Expenses, (b) Undistributed Expenses and (c) Fixed Expenses.

 

“Departmental Expenses”
means Room Expenses plus F&B Expenses plus Telephone Expenses plus Other Departmental Expenses.

 

    	A-2

    	 

    

 

“Room Expenses”
means the product of (a) actual expenses related to the generation of room revenue as determined from the most recent operating
statement for the Property at the time of determination, expressed as a dollar amount per occupied room (based on actual occupancy
over the applicable period) and (b) Total Occupied Rooms; provided, however, that Room Expenses will not be less than 17% of Room
Revenue.

 

“F&B Expenses”
means the product of (a) actual expenses related to the generation of food and beverage revenue as determined from the most recent
operating statement for the Property at the time of determination, expressed as a dollar amount per occupied room (based on actual
occupancy over the applicable period) and (b) Total Occupied Rooms.

 

“Telephone Expenses”
means the product of (a) actual expenses related to the generation of telephone revenue as determined from the most recent operating
statement for the Property at the time of determination, expressed as a dollar amount per occupied room (based on actual occupancy
over the applicable period) and (b) Total Occupied Rooms.

 

“Other Departmental Expenses”
means the product of (a) actual expenses related to the generation of Other Revenue as determined from the most recent operating
statement for the Property at the time of determination expressed as a dollar amount per occupied room (based on actual occupancy
over the applicable period) and (b) Total Occupied Rooms.

 

“Undistributed Expenses”
means all other expenses not otherwise included in another category of expenses within the definition of Operating Expenses, computed
in accordance with accounting principles reasonably acceptable to Lender, of whatever kind and from whatever source, relating to
the ownership, operation, repair, maintenance and management of the Property that are incurred on a regular monthly or other periodic
basis, including, without limitation (and without duplication): (a) management fees (whether or not actually paid) equal to the
greater of the actual management fees or 3% of Underwritten Revenue; franchise fees (whether or not actually paid) equal to the
greater of the actual franchise fees or 5% of Underwritten Revenue; advertising and marketing expenses equal to the greater of
the actual advertising and marketing expenses or 5% of Underwritten Revenue; and general and administrative costs and expenses
equal to the greater of the actual general and administrative costs and expenses or 7.5% of Underwritten Revenue; and (b) costs
attributable to the ordinary operation, repair and maintenance of the Improvements (including any common area maintenance costs);
professional fees; license fees; utilities; payroll, benefits and related taxes and expenses; computer processing charges; where
applicable, operating equipment or other lease payments as approved by Lender; bond assessments; and other similar costs and expenses;
in each instance, unless otherwise noted, only to the extent actually paid for by Borrower or by Master Lessee; provided, however,
that expenses under clause (b) will not be less than $340,000. Notwithstanding the foregoing, Undistributed Expenses shall not
include debt service (including principal, interest, impounds and other reserves), capital expenditures, FF&E expenses, costs
and expenses related to any property improvement plan (or similar obligations), tenant improvement costs, leasing commissions or
other expenses which are paid from escrows required by the Loan Documents; any payment or expense for which Borrower or Master
Lessee was or is to be reimbursed from proceeds of the loan or insurance or by any third party; federal, state or local income
taxes; any non-cash charges such as depreciation and amortization; and, where applicable, any item of expense otherwise includable
in Undistributed Expenses which is paid directly by any tenant except real estate taxes paid directly to any taxing authority by
any tenant.

 

    	A-3

    	 

    

 

“Fixed Expenses”
means the sum of (a) Taxes (based on the most current bill annualized, subject to adjustment by Lender to take into account any
change in assessment that has not yet been reflected in the most current tax bill), and (b) Insurance Premiums (based on the most
current premium annualized).

 

In making the calculations described
herein, applicable line items may be adjusted by Lender in its reasonable discretion (a) to accurately reflect the amounts of any
extraordinary non-recurring items in the relevant period and to reflect on a pro rata basis those items on an annual or semi-annual
basis, (b) to accurately reflect prevailing market conditions and (c) where applicable, to reflect leases (and projected changes
to the applicable line items above) which are either (i) anticipated to terminate within the 90 days of the date of calculation
or (ii) executed with creditworthy tenants with rent commencement dates scheduled to occur within 90 days of the date of calculation.

 

[NO FURTHER TEXT ON THIS PAGE]

 

    	A-4

    	 

    

 

SCHEDULE I

 

IMMEDIATE REPAIRS

 

NONE

 

    	Schedule I-1

    	 

    

 

SCHEDULE II

 

ORGANIZATIONAL CHART

 

(attached hereto)

 

    	Schedule II-1

    	 

    

 

SCHEDULE III

 

DESCRIPTION OF REA’S

 

	1.	Declaration of Covenants, Conditions and Restrictions for the
Alegre Park Subdivision, dated on or about January 19, 2000, recorded in the Official Public Records of Travis County, Texas as
Document No. 2000009294 

 

	2.	Declaration of Easements and Restrictive Covenant Regarding Unified
Development and Maintenance of Drainage Facilities dated August 21, 2012, and recorded in the Official Public Records of Travis
County, Texas as Document No. 2013011982.

 

    	Schedule III-1

    	 

    

 

SCHEDULE IV

 

INTENTIONALLY OMITTED.

 

 

Schedule IV-1Moody National REIT, I Inc. POS AM

EXHIBIT 10.111

 

Loan No. 31-0926091

 

PROMISSORY
NOTE

 

	$19,000,000.00	Austin, Texas
	 	November 19, 2014

 

FOR
VALUE RECEIVED MOODY NATIONAL RESEARCH-AUSTIN HOLDING, LLC, a Delaware limited liability company, as maker,
having its principal place of business at 6363 Woodway, Suite 110, Houston, Texas 77057 (“Borrower”), hereby
unconditionally promises to pay to the order of WELLS FARGO BANK, NATIONAL ASSOCIATION, having an address at Wells Fargo
Center, 1901 Harrison Street, 2nd Floor, MAC A0227-020, Oakland, California 94612 (together with its successors and/or
assigns, “Lender”), or at such other place as the holder hereof may from time to time designate in writing,
the principal sum of NINETEEN MILLION AND NO/100 DOLLARS ($19,000,000.00), or so much thereof as is advanced, in lawful
money of the United States of America, with interest thereon to be computed from the date of this Note at the Interest Rate, and
to be paid in accordance with the terms of this Note and that certain Loan Agreement dated the date hereof between Borrower and
Lender (as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time, the “Loan
Agreement”). All capitalized terms not defined herein shall have the respective meanings set forth in the Loan Agreement.

 

ARTICLE
1: PAYMENT TERMS

 

Borrower
agrees to pay the principal sum of this Note and interest on the unpaid principal sum of this Note from time to time outstanding
at the rates and at the times specified in Article 2 of the Loan Agreement and the outstanding balance of the principal sum of
this Note and all accrued and unpaid interest thereon shall be due and payable on the Maturity Date.

 

ARTICLE
2: DEFAULT AND ACCELERATION

 

The
Debt shall without notice become immediately due and payable at the option of Lender upon the occurrence and during the continuation
of an Event of Default.

 

ARTICLE
3: LOAN DOCUMENTS

 

This
Note is secured by the Security Instrument and the other Loan Documents. All of the terms, covenants and conditions contained
in the Loan Agreement, the Security Instrument and the other Loan Documents are hereby made part of this Note to the same extent
and with the same force as if they were fully set forth herein. In the event of a conflict or inconsistency between the terms
of this Note and the Loan Agreement, the terms and provisions of the Loan Agreement shall govern.

 

    	 

    	 

    

 

ARTICLE
4: SAVINGS CLAUSE

 

Notwithstanding
anything to the contrary, (a) all agreements and communications between Borrower and Lender are hereby and shall automatically
be limited so that, after taking into account all amounts deemed interest, the interest contracted for, charged or received by
Lender shall never exceed the Maximum Legal Rate, (b) in calculating whether any interest exceeds the Maximum Legal Rate, all
such interest shall be amortized, prorated, allocated and spread over the full amount and term of all principal indebtedness of
Borrower to Lender, and (c) if through any contingency or event, Lender receives or is deemed to receive interest in excess
of the Maximum Legal Rate, any such excess shall be deemed to have been applied toward payment of the principal of any and all
then outstanding indebtedness of Borrower to Lender, or if there is no such indebtedness, shall immediately be returned to Borrower.

 

ARTICLE
5: NO ORAL CHANGE

 

This
Note may not be modified, amended, waived, extended, changed, discharged or terminated orally or by any act or failure to act
on the part of Borrower or Lender, but only by an agreement in writing signed by the party against whom enforcement of any modification,
amendment, waiver, extension, change, discharge or termination is sought.

 

ARTICLE
6: WAIVERS

 

Borrower
and all others who may become liable for the payment of all or any part of the Debt do hereby severally waive presentment and
demand for payment, notice of dishonor, notice of intention to accelerate, notice of acceleration, protest and notice of protest
and non-payment and all other notices of any kind. No release of any security for the Debt or extension of time for payment of
this Note or any installment hereof, and no alteration, amendment or waiver of any provision of this Note, the Loan Agreement
or the other Loan Documents made by agreement between Lender or any other Person shall release, modify, amend, waive, extend,
change, discharge, terminate or affect the liability of Borrower or any other Person who may become liable for the payment of
all or any part of the Debt under this Note, the Loan Agreement or the other Loan Documents. No notice to or demand on Borrower
shall be deemed to be a waiver of the obligation of Borrower or of the right of Lender to take further action without further
notice or demand as provided for in this Note, the Loan Agreement or the other Loan Documents. If Borrower is a partnership or
limited liability company, the agreements herein contained shall remain in force and be applicable, notwithstanding any changes
in the individuals comprising the partnership or limited liability company, and the term “Borrower,” as used herein,
shall include any alternate or successor partnership or limited liability company, but any predecessor partnership or limited
liability company and their partners or members, to the extent previously liable for the obligations of Borrower in respect of
the Loan, shall not thereby be released from any liability. If Borrower is a corporation, the agreements contained herein shall
remain in full force and be applicable notwithstanding any changes in the shareholders comprising, or the officers and directors
relating to, the corporation, and the term “Borrower,” as used herein, shall include any alternative or successor
corporation, but any predecessor corporation shall not be relieved of liability hereunder. Nothing in the foregoing sentence shall
be construed as a consent to, or a waiver of, any prohibition or restriction on transfers of interests in such partnership, limited
liability company or corporation, which may be set forth in the Loan Agreement, the Security Instrument or any other Loan Document.

 

    	2

    	 

    

 

ARTICLE
7: TRANSFER

 

Upon
the transfer of this Note, Borrower hereby waiving notice of any such transfer, Lender may deliver all the collateral mortgaged,
granted, pledged or assigned pursuant to the Loan Documents, or any part thereof, to the transferee who shall thereupon become
vested with all the rights herein or under applicable law given to Lender with respect thereto, and Lender shall thereafter forever
be relieved and fully discharged from any liability or responsibility in the matter; but Lender shall retain all rights hereby
given to it with respect to any liabilities and the collateral not so transferred.

 

ARTICLE
8: EXCULPATION

 

The
provisions of Article 13 of the Loan Agreement are hereby incorporated by reference into this Note to the same extent and with
the same force as if fully set forth herein.

 

ARTICLE
9: GOVERNING LAW

 

This
Note shall be governed, construed, applied and enforced in accordance with the Applicable Laws of the State where the Property
is located and Applicable Laws of the United States of America.

 

ARTICLE
10: NOTICES

 

All
notices or other written communications hereunder shall be delivered in accordance with Article 14 of the Loan Agreement.

 

[NO
FURTHER TEXT ON THIS PAGE]

 

    	3

    	 

    

 

IN
WITNESS WHEREOF, Borrower has duly executed this Note as of the day and year first above written.

 

	 	BORROWER:
	 	 
	 	MOODY NATIONAL RESEARCH-AUSTIN HOLDING, LLC, a Delaware limited liability company

 

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

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