Document:

EX-10.1

 Exhibit 10.1 

EXECUTION VERSION 

AMENDMENT NO. 2 AND CONSENT 

This AMENDMENT NO. 2 AND CONSENT (this “Agreement”) to the Fourth Amended and Restated Credit Agreement, dated as of
May 21, 2014 (as amended by that certain Amendment No. 1 dated as of February 5, 2015, that certain letter amendment dated as of November 29, 2016, and as the same may have been further amended, restated, supplemented or
otherwise modified from time to time before the date hereof, the “Original Credit Agreement”, and as the Original Credit Agreement is amended hereby and further amended, supplemented, amended and restated or otherwise modified from
time to time, the “Credit Agreement”), by and among H&E EQUIPMENT SERVICES, INC., a Delaware corporation (“H&E Delaware”), GREAT NORTHERN EQUIPMENT, INC., a Montana corporation (“Great
Northern”), H&E EQUIPMENT SERVICES (CALIFORNIA), LLC, a Delaware limited liability company (“H&E California” and, together with H&E Delaware and Great Northern, each, a “Borrower” and,
collectively, the “Borrowers”), the other Credit Parties named therein, the Lenders named therein, WELLS FARGO CAPITAL FINANCE, LLC, a Delaware limited liability company, as successor to General Electric Company, successor-by-merger to General Electric Capital Corporation, as Agent (in such capacity, together with its successors and assigns in such capacity, “Agent”),
and the other agents party thereto, is entered into as of August 17, 2017, by and among the Borrowers, the Lenders signatory hereto and the Agent. Unless otherwise provided, all capitalized terms used herein shall have the meanings ascribed
thereto in the Credit Agreement. 
 R E C I T A L S: 

WHEREAS, the Borrowers have requested that the Agent and Requisite Lenders agree to certain amendments of the Original Credit Agreement as set
forth in this Agreement; and 
 WHEREAS, the Agent and the Lenders party hereto have agreed to such amendments to the Original Credit
Agreement, subject to the terms and conditions of this Agreement. 
 NOW, THEREFORE, in consideration of the premises and the agreements,
provisions and covenants herein contained, and subject to the terms and conditions hereof, the Borrowers, the Requisite Lenders and the Agent agree as follows: 

Section 1. 

AMENDMENTS 
 The Original
Credit Agreement is amended as follows: 
 (a)     Annex A to the Original Credit Agreement is amended by adding
the following new definitions in appropriate alphabetical order: 
 “2022 Senior Unsecured Note Indenture”
means the Indenture, dated August 20, 2012, among H&E Delaware, the guarantors party thereto and The Bank of New York Mellon Trust Company, N.A., as trustee, as such Indenture may be amended, modified or supplemented from time to time in
accordance with its terms and the terms hereof. 
 “2022 Senior Unsecured Notes” means up to $630,000,000 7%
senior notes due 2022 issued by H&E Delaware pursuant to the 2022 Senior Unsecured Note Indenture, together with any amendments, modifications, supplements, replacements or substitutions thereof made or issued in accordance with the terms of the
2022 Senior Unsecured Note Indenture and this Agreement. 

 “2025 Senior Unsecured Note Indenture” means an indenture (as
the same may be amended, restated, supplemented, or otherwise modified from time to time) which, among other things: 
 (a)
    is executed and delivered after the Amendment No 2 Effective Date; 
 (b)
    provides for the issuance after the Amendment No. 2 Effective Date and before September 15, 2017, of up to $750,000,000 of senior unsecured notes with a stated maturity no earlier than the eighth anniversary of the
date on which such notes are issued; 
 (c)     contains terms which, taken as a whole, are not
materially more restrictive to H&E Delaware and its Subsidiaries than the terms set forth in the 2022 Senior Unsecured Note Indenture; and 

(d)     does not prohibit the incurrence of the Obligations under this Agreement and the other Loan
Documents (in accordance with the terms of this Agreement and the other Loan Documents, as in effect on the Amendment No. 2 Effective Date). 

“2025 Senior Unsecured Notes” means the notes issued by H&E Delaware under the 2025 Senior Unsecured Note
Indenture, together with any amendments, modifications, supplements, replacements or substitutions thereof made or issued in accordance with the terms of the 2025 Senior Unsecured Note Indenture and this Agreement. 

“Amendment No. 2” means that certain Amendment No. 2 and Consent dated as of
August 17, 2017, by and among the Borrowers, the Lenders signatory thereto, and the Agent. 
 “Amendment
No. 2 Effective Date” means the “Amendment No. 2 Effective Date,” as such term is defined in Amendment No. 2. 

(b)     Each of the following definitions in Annex A to the Original Credit Agreement is amended so that it reads,
in its entirety, as follows: 
 “Senior Unsecured Note Indenture” means either or both, as applicable, of
the 2022 Senior Unsecured Note Indenture and the 2025 Senior Unsecured Note Indenture. 
 “Senior Unsecured
Notes” means either or both, as applicable, of the 2022 Senior Unsecured Notes and the 2025 Senior Unsecured Notes. 

(c)     Section 3.25 of the Original Credit Agreement is amended so that it reads, in its entirety, as follows: 

3.25 Senior Unsecured Note Indenture 

The amount of Permitted Debt that may be incurred under (and as such term is defined in) the Senior Unsecured Note Indenture
pursuant to Section 4.09(b)(1) of the Senior Unsecured Note Indenture is the greater of (x) $450,000,000 (in the case of the 2022 Senior Unsecured Note Indenture) and $700,000,000 (in the case of the 2025 Senior Unsecured Notes Indenture) and

  
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(y) the Borrowing Base (as defined in the applicable Senior Unsecured Note Indenture). No Net Proceeds of any Asset Sales have been applied to repay any term Indebtedness or revolving credit
Indebtedness under a Credit Facility (and in the case of revolving credit Indebtedness, effecting a corresponding commitment reduction thereunder). As used in this Section 3.25, the defined terms “Credit Facility”, “Net
Proceeds”, “Asset Sale” and “Indebtedness” shall have the meanings provided in the applicable Senior Unsecured Note Indenture. 

(d)     Section 6.3(a)(vii) of the Original Credit Agreement is amended so that it reads, in its entirety, as follows:

 (vii)     Indebtedness under the Senior Unsecured Notes in an aggregate principal amount not to exceed: 

(A)     solely with respect to the 2022 Senior Unsecured Notes, $630,000,000 (less all repayments,
payments, repurchases, and redemptions thereof); and 
 (B)     solely with respect to the 2025 Senior
Unsecured Notes, $750,000,000 (less all repayments, payments, repurchases, and redemptions thereof). 
 Section 2. 

CONDITIONS TO EFFECTIVENESS 

None of the amendments set forth in Section 1 of this Agreement, the consents set forth in Section 3 of this
Agreement, and the covenants set forth in Section 4 of this Agreement, shall become effective until the satisfaction of each of the following conditions precedent (the date on which such conditions precedent are satisfied is referred to as the
“Amendment No. 2 Effective Date”): 
 (a)     the Agent shall have received one or
more counterparts of (i) this Agreement, executed and delivered by the Borrowers, the Requisite Lenders, and the Agent, and (ii) the Consent and Reaffirmation in the form of Exhibit I hereto, executed and delivered by the
Guarantors; and 
 (b)     there shall be no continuing Default or Event of Default (after giving effect to this
Agreement), and the representations and warranties of the Borrowers contained in this Agreement shall be true and correct in all material respects. 

Section 3. 

CONSENTS 
 (a)
    Any other term or provision of the Credit Agreement or the other Loan Documents to the contrary notwithstanding, the Agent and the Requisite Lenders consent to the formation of Yellow Iron Merger Co., a Delaware corporation
(“Yellow Iron”) by H&E Delaware and agree that no Default or Event of Default occurred solely as a consequence of the formation of Yellow Iron, it being agreed that the consent and waiver afforded in this clause (a) is
limited solely to the formation of Yellow Iron; is not, and shall not be construed to be, a waiver of any other existing or future Events of Default which may occur, except as expressly set forth herein; does not constitute a waiver of any rights,
powers or privileges of Agent or any Lender under the Credit Agreement or the other Loan Documents or under applicable law, other than as specifically set forth herein. 

  
 3 

 (b)     Any other term or provision of the Credit Agreement and the other
Loan Documents notwithstanding, the Agent and the Requisite Lenders consent to the issuance by H&E Delaware of the 2025 Senior Unsecured Notes (as defined in the Original Credit Agreement as amended by this Agreement) and the use of the proceeds
thereof in a manner consistent with the terms of Section 4(b) of this Agreement. 
 Section 4. 

CERTAIN COVENANTS 
 Each
Borrower hereby covenants and agrees as follows: 
 (a)     With respect to Yellow Iron: 

(i)     On or before March 30, 2018 (or such later date as may be agreed to by Agent), Borrowers shall have
(A) caused to be filed with the Secretary of State of the State of Delaware a Certificate of Dissolution providing for the dissolution of Yellow Iron and, thereafter, pursue the dissolution of Yellow Iron with commercially reasonable diligence
or (B) caused Yellow Iron to be joined as a Guarantor under the Credit Agreement and the other Loan Documents, as applicable, in accordance with the terms of the Credit Agreement and the other Loan Documents; and 

(ii)     Until the earlier to occur of the dissolution of Yellow Iron and the date on which Yellow Iron is joined to the
Credit Agreement and the other Loan Documents, as applicable, in accordance with the foregoing clause (i), H&E Delaware shall not permit Yellow Iron to (A) incur any Indebtedness (other than any guarantee of Indebtedness of H&E Delaware
incurred under any Senior Unsecured Note Indenture (as defined in the Credit Agreement after giving effect to this Agreement)); (B) grant any Liens; (C) own any assets; (D) conduct any business; or (E) amend its charter or its bylaws,
except, in any of the foregoing cases, to the extent directly related to the maintenance or dissolution of its existence. 
 (iii)
    Any of the foregoing to the contrary notwithstanding, if Yellow Iron becomes a guarantor of any Indebtedness of H&E Delaware or any of its Affiliates, whether under any Senior Unsecured Note Indenture (as defined in the
Credit Agreement after giving effect to this Agreement) or otherwise (but not including the Obligations under the Credit Agreement and the other Loan Documents), Borrowers shall cause Yellow Iron to be joined as a Guarantor under the Credit
Agreement within 30 days after the effectiveness of such guarantee. 
 (b)     With respect to the 2025 Senior Unsecured
Notes and the 2025 Senior Unsecured Note Indenture (as each of such terms is defined in the Credit Agreement after giving effect to this Agreement): 

(i)     H&E Delaware shall not, nor shall it permit any of its Subsidiaries to, use any proceeds of such notes for
any purpose other than (A) the repurchase, repayment, prepayment, or redemption of the 2022 Senior Unsecured Notes (as defined in the Credit Agreement after giving effect to this Agreement); (B) the payment of interest, fees, and premiums in
respect of such 2022 Senior Unsecured Notes; (C) the payment of fees, costs, charges, and expenses incurred in connection with the repurchase, repayment, prepayment, or redemption of such 2022 Senior Unsecured Notes or the issuance of such 2025
Senior Unsecured Notes and the negotiation, preparation, and execution and delivery of such 2025 Senior Unsecured Note Indenture; and (D) the payment of Obligations. 

(ii)     Within five Business Days after the execution and delivery of such 2025 Senior Unsecured Note Indenture (or such
longer period of time agreed to in writing by the Agent), H&E 

  
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Delaware shall deliver to the Agent a true and complete copy of such 2025 Senior Unsecured Note Indenture, with all exhibits, schedules, annexes, and appendices thereto, together with such other
documents, instruments, and agreements executed or delivered in connection therewith as the Agent may reasonably request, each of which will, to the extent requested by the Agent, be certified as being true and complete copies thereof. 

(c)     H&E Delaware shall not permit Yellow Iron to become a guarantor of any Senior Unsecured Notes (as defined in
the Credit Agreement after giving effect to this Agreement) without giving Agent no less than one Business Day’s prior written notice thereof. 

(d)     Any violation of the covenants set forth in this Section 4 shall constitute an Event of Default. 

Section 5. 

LIMITATION ON SCOPE 
 Except
as expressly provided herein, the Loan Documents shall remain in full force and effect in accordance with their respective terms. The amendments and consents set forth herein shall be limited precisely as provided for herein and shall not be deemed
to be amendments or waivers of or consents to or modifications of any term or provision of the Loan Documents or any other document or instrument referred to therein or of any transaction or further or future action on the part of any Credit Party
requiring the consent of the Agent or the Lenders except to the extent specifically provided for herein. The Agent and the Lenders have not and shall not be deemed to have waived any of their respective rights and remedies against any Credit Party
for any existing or future Defaults or Events of Default, except as expressly set forth herein. 
 Section 6. 

MISCELLANEOUS 
 (a)
    Each Borrower hereby represents and warrants as follows: 
 (i)     this Agreement has been duly
authorized and executed by such Borrower and is the legal, valid and binding obligation of such Borrower, enforceable in accordance with its terms, except as (1) such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium and similar laws affecting the rights of creditors in general and (2) the availability of equitable remedies may be limited by equitable principles of general applicability; and 

(ii)     such Borrower repeats and restates the representations and warranties of such Borrower contained in the Credit
Agreement as of the Amendment No. 2 Effective Date, except to the extent such representations and warranties relate to a specific date; provided that references to the “Credit Agreement” or “this Agreement” in such
representations and warranties shall be deemed to be references to the Credit Agreement as amended pursuant to this Agreement. 
 (b)
    This Agreement is being delivered in the State of New York. 
 (c)     Each Borrower ratifies
and confirms that all Loan Documents remain in full force and effect notwithstanding the execution and delivery of this Agreement and that nothing contained in this Agreement shall constitute a defense to the enforcement of any Loan Document. 

  
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 (d)     This Agreement may be executed by the parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed an original, but all of which counterparts together shall constitute but one and the same instrument. 

(e)     This Agreement is a “Loan Document” and each of the following provisions of the Credit Agreement is
hereby incorporated herein by this reference with the same effect as though set forth in its entirety herein, mutatis mutandis: Section 11.6 (Severability), Section 11.9 (Governing Law), Section 11.10 (Notices),
Section 11.11 (Electronic Transmissions), Section 11.12 (Section Titles), Section 11.14 (Waiver of Jury Trial), Section 11.17 (Advice of Counsel) and Section 11.18 (No Strict Construction). The preamble and recitals to this
Agreement are incorporated herein by this reference. 
 [Continued on following page.] 

  
 6 

 Witness the due execution hereof by the respective duly authorized officers of the undersigned of
this Agreement as of the date first written above. 
  

			
	H&E EQUIPMENT SERVICES, INC.
		
	By:	 	/s/ Leslie Magee
	Name:	 	Leslie Magee
	Title:	 	CFO

  

			
	H&E EQUIPMENT SERVICES (CALIFORNIA), LLC
		
	By:	 	/s/ Leslie Magee
	Name:	 	Leslie Magee
	Title:	 	CFO

  

			
	GREAT NORTHERN EQUIPMENT, INC.
		
	By:	 	/s/ Leslie Magee
	Name:	 	Leslie Magee
	Title:	 	CFO

 
			
	 WELLS FARGO CAPITAL FINANCE, LLC,

as Agent and as a Lender

		
	By:	 	/s/ Matt Mouledous
	Name:	 	Matt Mouledous
	Title:	 	Vice President

 
			
	 BANK OF AMERICA, N.A.
 as a
Lender

		
	By:	 	/s/ Marzan Khan
	Name:	 	Marzan Khan
	Title:	 	Assistant Vice President

 EXHIBIT I 

CONSENT AND REAFFIRMATION 

Each of the undersigned (the “Guarantors”) hereby (i) acknowledges receipt of a copy of Amendment No. 2, dated as
of August 17, 2017 (“Amendment No. 2”), to the Fourth Amended and Restated Credit Agreement, dated as of May 21, 2014, as amended by that certain Amendment No. 1 dated as of February 5, 2015,
that certain letter amendment dated as of November 29, 2016, and as the same may have been amended, restated, supplemented, or otherwise modified from time to time before the date hereof, among H&E Equipment Services, Inc., Great Northern
Equipment, Inc., H&E Equipment Services (California), LLC (collectively, the “Borrowers”), the other Credit Parties named therein, the Lenders named therein, Wells Fargo Capital Finance, LLC, as successor to General Electric
Company, successor-by-merger to General Electric Capital Corporation, as Agent, and the other agents party thereto; (ii) consents to the Borrowers’ execution
and delivery thereof and approves and consents to the transactions contemplated thereby; (iii) agrees to be bound thereby; (iv) affirms that nothing contained therein shall modify or diminish in any respect whatsoever its obligations under
its Guaranty and the other Loan Documents to which it is a party and reaffirms that such Guaranty and the other Loan Documents are and shall continue to remain in full force and effect; and (v) repeats and restates the representations and
warranties of such Guarantor contained in the Credit Agreement (as defined in Amendment No. 2) as of the Amendment No. 2 Effective Date, except to the extent such representations and warranties relate to a specific date; provided
that references to the “Credit Agreement” or “this Agreement” in such representations and warranties shall be deemed to be references to the Credit Agreement (as defined in Amendment No. 2) as amended pursuant to Amendment
No. 2. The acknowledgements contained herein by the Guarantors are made and delivered to induce the Agent, the Requisite Lenders to enter into Amendment No. 2, and the Guarantors acknowledge that the Agent and Requisite Lenders would not
enter into Amendment No. 2 in the absence of such acknowledgements. Although the Guarantors have been informed of the matters set forth herein and have acknowledged and agreed to same, the Guarantors understand that the Agent and Lenders have
no obligation to inform the Guarantors of such matters in the future or to seek the Guarantors’ acknowledgment or agreement to future amendments or waivers, and nothing herein shall create such a duty. Capitalized terms used herein without
definition shall have the meanings given to such terms in the Credit Agreement (as defined in Amendment No. 2). 
 [Continued on
following page.] 

 IN WITNESS WHEREOF, the undersigned have executed this Consent and Reaffirmation on and as of the
date of Amendment No. 2. 
  

			
	GNE INVESTMENTS, INC.
		
	By:	 	/s/ Leslie Magee
	Name:	 	Leslie Magee
	Title:	 	CFO

  

			
	H&E FINANCE CORP.
		
	By:	 	/s/ Leslie Magee
	Name:	 	Leslie Magee
	Title:	 	CFO

  

			
	H&E CALIFORNIA HOLDING, INC.
		
	By:	 	/s/ Leslie Magee
	Name:	 	Leslie Magee
	Title:	 	CFO

  

			
	H&E EQUIPMENT SERVICES (MID-ATLANTIC), INC.
		
	By:	 	/s/ Leslie Magee
	Name:	 	Leslie Magee
	Title:	 	CFOMoody National REIT II, Inc. 8-K

 

Exhibit 10.1

 

PROMISSORY NOTE

 

	$7,106,505.60	August 15, 2017

 

FOR VALUE RECEIVED,
Moody National International-Fort Worth Holding, LLC, a Delaware limited liability company (“Borrower”), hereby
promises to pay to the order of Moody National Operating Partnership II, LP, a Delaware limited partnership (together with any
and all of its successors and assigns and/or any other holder of this Note, “Lender”), without offset, in immediately
available funds in lawful money of the United States of America, the principal sum of Seven Million, One Hundred Six Thousand,
Five Hundred Five Dollars and Sixty Cents ($7,106,505.60) (or the unpaid balance of all principal advanced against this Note, if
that amount is less), together with interest on the unpaid principal balance of this Note from day to day outstanding as hereinafter
provided.

Section 1.

Payment Schedule
and Maturity Dates. Principal and interest on this Note shall be payable as follows:

The entire principal
balance of this Note then unpaid, together with all accrued and unpaid interest and all other amounts payable hereunder and under
the other Loan Documents (as hereinafter defined), shall be due and payable in full upon the closing of the merger between Moody
National REIT I, Inc. and Moody National REIT II, Inc. but in no event later than September 30, 2017 (the “Maturity Date”).

Section 2.

Security; Loan
Documents. The security for this Note includes those certain Deeds of Trust, Assignment, Security Agreement and Fixture Filing
(as the same may from time to time be amended, restated, modified or supplemented, collectively the “Mortgage”)
of even date herewith from each Borrower to Lender, conveying and encumbering certain real and personal property owned by such
Borrower and more particularly described therein (the “Property”). This Note, the Mortgage, and all other documents
now or hereafter securing, guaranteeing or executed in connection with the loan evidenced by this Note (the “Loan”),
as the same may from time to time be amended, restated, modified or supplemented, are herein sometimes called individually a “Loan
Document” and together the “Loan Documents.”

Section 3.

Interest Rate.
Interest on the outstanding principal balance of, and all other sums owing under this Note, which are not past due, shall accrue
and be payable at a per annum rate which is equal to the lesser of (i) the Maximum Lawful Rate (as defined below), or (ii) the
Note Rate (as defined below). Interest shall be computed for the actual number of days which have elapsed, on the basis of a 360-day
year. The term “Note Rate” shall mean six and one-half percent (6.50%) per annum. The term “Maximum
Lawful Rate” shall mean the maximum lawful rate of interest which may be contracted for, charged, taken, received or
reserved by Lender in accordance with the applicable laws of the State of Texas (or applicable United States federal law to the
extent that such law permits Lender to contract for, charge, take, receive or reserve a greater amount of interest than under Texas
law). If any amount payable by Borrower under any Loan Document is not paid when due (without regard to any applicable grace periods),
such amount shall thereafter bear interest at the Past Due Rate (as defined below) to the fullest extent permitted by applicable
law. Accrued and unpaid interest on past due amounts (including interest on past due interest) shall be due and payable on demand,
at a rate per annum (the “Past Due Rate”) equal to the lesser of (y) eighteen percent (18%), or (z) the Maximum
Lawful Rate.

Section 4.

Prepayment.
Upon one (1) days advanced written notice to Lender, Borrower may prepay all or any portion of the principal amount of this Note.
Any prepayments shall be applied to amounts owed under this Note in the order set forth in Section 6 below.

Section 5.

Late Charges.
If Borrower shall fail to make any payment under the terms of this Note (other than the payment due at maturity) within five (5)
days after the date such payment is due, Borrower shall pay to Lender on demand a late charge equal to five percent (5%) of the
amount of such payment. Such five (5) day period shall not be construed as in any way extending the due date of any payment or
the Maturity Date. The late charge is imposed for the purpose of defraying the expenses of Lender incident to handling such delinquent
payment. This charge shall be in addition to, and not in lieu of, any other amount that Lender may be entitled to receive or action
that Lender may be authorized to take as a result of such late payment. 

    	 

    	 

    

  

Section 6.

Certain Provisions
Regarding Payments. All payments on this Note shall, at the sole option of Lender, be applied at any time and from time to
time and in any order, to the following: (a) the payment or reimbursement of any expenses, late charges, costs or obligations (other
than the principal hereof and interest hereon) for which Borrower shall be obligated or Lender entitled pursuant to the provisions
hereof or of the other Loan Documents, (b) the payment of accrued but unpaid interest hereon, and (c) the payment of all or any
portion of the principal balance then outstanding hereunder. Remittances shall be made without offset, demand, counterclaim, deduction,
or recoupment (each of which is hereby waived) and shall be accepted subject to the condition that any check or draft may be handled
for collection in accordance with the practice of the collecting bank or banks. Acceptance by Lender of any payment in an amount
less than the amount then due on any indebtedness shall be deemed an acceptance on account only, notwithstanding any notation on
or accompanying such partial payment to the contrary, and shall not in any way (a) waive or excuse the existence of an Event of
Default (as hereinafter defined), (b) waive, impair or extinguish any right or remedy available to Lender hereunder or under the
other Loan Documents, or (c) waive the requirement of punctual payment and performance or constitute a novation in any respect.
Payments received after 2:00 p.m. shall be deemed to be received on, and shall be posted as of, the following Business Day. Whenever
any payment under this Note or any other Loan Document falls due on a day which is not a Business Day, such payment may be made
on the next succeeding Business Day.

Section 7.

Events of Default.
The occurrence of any one or more of the following shall constitute an “Event of Default” under this Note:

(a)       

Borrower fails
to pay when and as due and payable any amounts payable by Borrower to Lender under the terms of this Note.

(b)       

Borrower fails
to timely perform, observe or keep any covenant, agreement or condition in this Note and (other than a monetary payment under (a)
above) and such failure continues uncured for a period of thirty (30) days after notice from Lender to Borrower.

(c)       

An Event of Default
(as therein defined) occurs under any of the Loan Documents other than this Note.

Section 8.

Remedies.
Upon the occurrence of an Event of Default, Lender may at any time thereafter exercise any one or more of the following rights,
powers and remedies:

(a)       

Lender may accelerate
the Maturity Date and declare the unpaid principal balance and accrued but unpaid interest on this Note, and all other amounts
payable hereunder and under the other Loan Documents, at once due and payable, and upon such declaration the same shall at once
be due and payable.

(b)       

Lender may set
off the amount due against any and all accounts, credits, money, securities or other property now or hereafter on deposit with,
held by or in the possession of Lender to the credit or for the account of Borrower, without notice to or the consent of Borrower.

(c)       

Lender may exercise
any of its other rights, powers and remedies under the Loan Documents or at law or in equity.

Section 9.

Remedies Cumulative.
All of the rights and remedies of Lender under this Note and the other Loan Documents are cumulative of each other and of any and
all other rights at law or in equity, and the exercise by Lender of any one or more of such rights and remedies shall not preclude
the simultaneous or later exercise by Lender of any or all such other rights and remedies. No single or partial exercise of any
right or remedy shall exhaust it or preclude any other or further exercise thereof, and every right and remedy may be exercised
at any time and from time to time. No failure by Lender to exercise, nor delay in exercising, any right or remedy shall operate
as a waiver of such right or remedy or as a waiver of any Event of Default.

    	 

    	 

    

  

Section 10.

Costs and Expenses
of Enforcement. Borrower agrees to pay to Lender on demand all reasonable costs and expenses incurred by Lender in seeking
to collect this Note or to enforce any of Lender’s rights and remedies under the Loan Documents, including court costs and
reasonable attorneys’ fees and expenses, whether or not suit is filed hereon, or whether in connection with bankruptcy, insolvency
or appeal. Nothing in this Note shall affect the right of Lender to serve process in any manner otherwise permitted by law and
nothing in this Note will limit the right of Lender otherwise to bring proceedings against Borrower in the courts of any jurisdiction
or jurisdictions.

Section 11.

Heirs, Successors
and Assigns. The terms of this Note and of the other Loan Documents shall bind and inure to the benefit of the heirs, devisees,
representatives, successors and assigns of the parties. The foregoing sentence shall not be construed to permit Borrower to assign
the Loan except as otherwise permitted under the Loan Documents.

Section 12.

General Provisions.
Time is of the essence with respect to Borrower’s obligations under this Note. If more than one person or entity executes
this Note as Borrower, all of said parties shall be jointly and severally liable for payment of the indebtedness evidenced hereby.
Borrower and each party executing this Note as Borrower hereby severally (a) waive demand, presentment for payment, notice of dishonor
and of nonpayment, protest, notice of protest, notice of intent to accelerate, notice of acceleration and all other notices (except
any notices which are specifically required by this Note or any other Loan Document), filing of suit and diligence in collecting
this Note or enforcing any of the security herefor; (b) agree to any substitution, subordination, exchange or release of any
such security or the release of any party primarily or secondarily liable hereon; (c) agree that Lender shall not be required first
to institute suit or exhaust its remedies hereon against Borrower or others liable or to become liable hereon or to perfect or
enforce its rights against them or any security herefor; (d) consent to any extensions or postponements of time of payment of this
Note for any period or periods of time and to any partial payments, before or after maturity, and to any other indulgences with
respect hereto, without notice thereof to any of them; and (e) submit (and waive all rights to object) to non-exclusive personal
jurisdiction of any state or federal court sitting in the state and county in which payment of this Note is to be made for the
enforcement of any and all obligations under this Note and the other Loan Documents; (f) waive the benefit of all homestead and
similar exemptions as to this Note; (g) agree that their liability under this Note shall not be affected or impaired by any determination
that any title, security interest or lien taken by Lender to secure this Note is invalid or unperfected; and (h) hereby subordinate
to the Loan and the Loan Documents any and all rights against Borrower and any security for the payment of this Note, whether by
subrogation, agreement or otherwise, until this Note is paid in full. A determination that any provision of this Note is unenforceable
or invalid shall not affect the enforceability or validity of any other provision and the determination that the application of
any provision of this Note to any person or circumstance is illegal or unenforceable shall not affect the enforceability or validity
of such provision as it may apply to other persons or circumstances. This Note may not be amended except in a writing specifically
intended for such purpose and executed by the party against whom enforcement of the amendment is sought. Captions and headings
in this Note are for convenience only and shall be disregarded in construing it. This Note and its validity, enforcement and interpretation
shall be governed by the laws of the State of Texas (without regard to any principles of conflicts of laws) and applicable United
States federal law. Whenever a time of day is referred to herein, unless otherwise specified such time shall be the local time
of the place where payment of this Note is to be made. The term “Business Day” shall mean any day other than
a Saturday, Sunday or other day on which commercial banks are authorized to close under the Laws of Texas. Capitalized terms used
herein without definition shall have the meanings ascribed to such terms in the Loan Agreement. The words “include”
and “including” shall be interpreted as if followed by the words “without limitation.”

Section 13.

Notices. Any
notice, request, or demand to or upon Borrower or Lender shall be deemed to have been properly given or made when delivered in
accordance with the terms of the Loan Agreement regarding notices.

    	 

    	 

    

  

Section 14.

No Usury.
Interest on the debt evidenced by this Note will not exceed the maximum rate or amount of nonusurious interest that may be contracted
for, taken, reserved, charged, or received under law. Any interest in excess of that maximum amount will be credited on the unpaid
principal of this Note, if the principal has been paid, refunded. On any acceleration or required or permitted prepayment, any
excess interest will be cancelled automatically as of the acceleration or prepayment or, if the excess interest has already been
paid, credited on the principal or, if the principal has been paid, refunded. This provision overrides any conflicting provisions
in this Note, the Loan Agreement, Loan Documents and all other instruments concerning the obligations under the Loan. Borrower
hereby agrees that as a condition precedent to any claim seeking usury remedies or penalties against Lender, Borrower will provide
written notice to Lender, advising Lender in reasonable detail of the nature and amount of the violation and Lender shall have
sixty days after receipt of such notice in which to correct such usury violation, if any, by either refunding such excess interest
to Borrower or crediting such excess interest against the Loan or the Note then owing by Borrower to Lender. To the extent that
Lender is relying on Chapter 303 of the Texas Finance Code to determine the Maximum Lawful Rate payable on the Note or any other
portion of the Indebtedness, Lender will utilize the weekly ceiling from time to time in effect as provided in such Chapter 303,
as amended. To the extent United States federal law permits Lender to contract for, charge, take, receive or reserve a greater
amount of interest than under Texas law, Lender will rely on United States federal law instead of such Chapter 303 for the purpose
of determining the Maximum Lawful Rate. Additionally, to the extent permitted by applicable law now or hereafter in effect, Lender
may, at its option and from time to time, utilize any other method of establishing the Maximum Lawful Rate under such Chapter 303
or under other applicable law by giving notice, if required, to Borrower as provided by applicable law now or hereafter in effect.
In no event shall the provisions of Chapter 346 of the Texas Finance Code (which regulates certain revolving credit loan accounts
and revolving triparty accounts) apply to the Loan or any other Obligation.

15.       

Further Assurances
and Corrections. From time to time, at the request of Lender, Borrower will (i) promptly correct any defect, error or omission
which may be discovered in the contents of this Note or in any other Loan Document or in the execution or acknowledgement thereof;
(ii) execute, acknowledge, deliver, record and/or file (or cause to be executed, acknowledged, delivered, recorded and/or filed)
such further documents and instruments (including, without limitation, further deeds of trust, security agreements, financing statements,
continuation statements and assignments of rents) and perform such further acts and provide such further assurances as may be necessary,
desirable, or proper, in Lender's opinion, (A) to carry out more effectively the purposes of this Note and the Loan Documents and
the transactions contemplated hereunder and thereunder, (B) to confirm the rights created under this Note and the other Loan Documents,
(C) to protect and further the validity, priority and enforceability of this Note and the other Loan Documents and the liens and
security interests created thereby, and (D) to subject to the Loan Documents any property of Borrower intended by the terms of
any one or more of the Loan Documents to be encumbered by the Loan Documents; and (iii) pay all costs in connection with any of
the foregoing.

16.       

Rate Change for
Failure to Provide Financial Information. Borrower shall provide Lender from time to time with current financial information
for Borrower, as such financial information is reasonably requested by Lender and/or as provided in any Loan Documents executed
by Borrower in connection herewith. In the event Borrower shall fail to provide such financial information to Lender whether pursuant
to a request from Lender or as provided in any Loan Documents executed in connection herewith and after the expiration of any notice
and right to cure periods (if any), Borrower and Lender acknowledge and agree that the Note Rate shall increase by one percent
(1.00%).

17.       

Debtor and Creditor
Relationship. Notwithstanding any prior business or personal relationship between Borrower and Lender, or any officer, director
or employee of Lender that may exist or have existed, the relationship between Borrower and Lender is solely that of debtor and
creditor, Lender has no fiduciary or other special relationship with Borrower, Borrower and Lender are not partners or joint venturers,
and no term or condition of any of the Loan Documents shall be construed so as to deem the relationship between Borrower and Lender
to be other than that of debtor and creditor.

    	 

    	 

    

  

18.       

APPLICABLE LAW.
THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS AND ANY APPLICABLE LAWS OF THE
UNITED STATES OF AMERICA.

19.       

WAIVER OF JURY
TRIAL. BORROWER AND LENDER (BY ACCEPTANCE OF THIS NOTE) WAIVE TRIAL BY JURY IN RESPECT TO ANY DISPUTE AND ANY ACTION
ON SUCH DISPUTE. THIS WAIVER IS KNOWINGLY, WILLINGLY AND VOLUNTARILY MADE BY BORROWER AND LENDER, AND BORROWER AND LENDER HEREBY
REPRESENT THAT NO REPRESENTATIONS OF FACT OR OPINION HAVE BEEN MADE BY ANY PERSON OR ENTITY TO INDUCE THIS WAIVER OF TRIAL BY JURY
OR TO IN ANY WAY MODIFY OR NULLIFY ITS EFFECT. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES ENTERING INTO THE LOAN DOCUMENTS.
BORROWER AND LENDER ARE EACH HEREBY AUTHORIZED TO FILE A COPY OF THIS SECTION IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS
WAIVER OF JURY TRIAL. BORROWER FURTHER REPRESENTS AND WARRANTS THAT IT HAS BEEN REPRESENTED IN THE SIGNING OF THIS NOTE AND IN
THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, OR HAS HAD THE OPPORTUNITY TO BE REPRESENTED BY INDEPENDENT LEGAL COUNSEL
SELECTED OF ITS OWN FREE WILL, AND THAT IT HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL. 

20.       

BALLOON PAYMENT.
THIS NOTE IS PAYABLE IN FULL ON THE CLOSING OF THE MERGER BETWEEN MOODY NATIONAL REIT I, INC. AND MOODY NATIONAL REIT II, INC.
BUT IN NO EVENT LATER THAN SEPTEBMER 20, 2017. YOU MUST REPAY THE ENTIRE PRINCIPAL BALANCE OF THE NOTE AND UNPAID ACCRUED INTEREST
THEN DUE. THE LENDER IS UNDER NO OBLIGATION TO REFINANCE THE NOTE AT THAT TIME. YOU WILL, THEREFORE, BE REQUIRED TO MAKE PAYMENT
OUT OF OTHER ASSETS YOU MAY OWN, OR YOU WILL HAVE TO FIND A LENDER WILLING TO LEND YOU THE MONEY AT PREVAILING MARKET RATES, WHICH
MAY BE CONSIDERABLY HIGHER OR LOWER THAN THE INTEREST RATE ON THIS NOTE. IF YOU REFINANCE THIS NOTE AT MATURITY, YOU MAY HAVE TO
PAY SOME OR ALL CLOSING COSTS NORMALLY ASSOCIATED WITH A NEW LOAN EVEN IF YOU OBTAIN REFINANCING FROM THE SAME LENDER.

21.       

TEXAS PROPERTY
CODE WAIVERS. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, BORROWER WAIVES ALL RIGHTS, REMEDIES, CLAIMS AND DEFENSES
BASED UPON OR RELATED TO SECTIONS 51.003 AND 51.004 OF THE TEXAS PROPERTY CODE TO THE EXTENT THEY PERTAIN OR MAY PERTAIN TO ANY
ENFORCEMENT OR COLLECTION OF THIS NOTE.

22.       

ENTIRE AGREEMENT.
THIS NOTE AND THE OTHER LOAN DOCUMENTS CONTAIN THE FINAL, ENTIRE AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE
OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO ORAL AGREEMENTS AMONG THE PARTIES.

 

 

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blank; signature page follows)

 

    	 

    	 

    

 

IN WITNESS WHEREOF, Borrower
has duly executed this Note under seal as of the date first above written.

 

 

	 	BORROWER:
	 	 
	 	Moody National International-Fort Worth Holding, LLC, a Delaware limited liability company
	 	 
	 	By:	/s/ Brett C. Moody 
	 	 	Brett C. Moody, President

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