Document:

MOODY NATIONAL REIT I, INC. 10-K

EXECUTION VERSION

 

Exhibit
10.60

 

GUARANTY

 

This
GUARANTY (“Guaranty”) is executed as of ______________ __, 2015, by MOODY NATIONAL REIT I, INC., a Maryland
corporation (“Guarantor”), for the benefit of U.S. BANK NATIONAL ASSOCIATION, IN ITS CAPACITY AS TRUSTEE, SUCCESSOR-IN-INTEREST
TO BANK OF AMERICA, N.A., IN ITS CAPACITY AS TRUSTEE, SUCCESSOR-IN-INTEREST TO WELLS FARGO BANK, N.A,, IN ITS CAPACITY AS TRUSTEE
FOR THE REGISTERED HOLDERS OF COBALT CMBS COMMERCIAL MORTGAGE TRUST 2007-C3, COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES
2007-C3, its successors or assigns (“Lender”).

 

A.       Moody
National TPS Fort Worth S, LLC, a Delaware limited liability company, (“Moody S”), and Moody National TPS Fort
Worth H, LLC, a Delaware limited liability company (“Moody H”), obtained a loan (the “Loan”)
from Citigroup Global Markets Realty Corp., a New York corporation, its successors or assigns (“Original Lender”),
pursuant to that certain Fixed Rate Note dated as of May 18, 2007, payable to the order of Original Lender in the original principal
amount of SEVEN MILLION EIGHT HUNDRED FORTY THOUSAND AND NO/100 DOLLARS ($7,840,000) (together with all renewals, modifications,
increases and extensions thereof, the “Note”), which is (1) secured by the liens and security interests of
a Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing dated of even date with the Note (as the
same may be amended, restated, extended, or otherwise modified from time to time, the “Mortgage”), pursuant
to which Moody S and Moody H granted Original Lender a first lien on the Property (as defined in the Mortgage), and (2) further
evidenced, secured or governed by the other Loan Documents (as defined in the Note); and

 

B.        The
Loan and the Loan Documents were modified pursuant to seventeen (17) separate Assumption Agreements more particularly described
on Exhibit A attached hereto executed by Moody S, Brett C. Moody, Original Lender and each of the entities listed on Exhibit
A, each a Delaware limited liability company (together with Moody S and Moody H, “Original Borrower”),
whereby Moody S reaffirmed and assigned, and each of the entities listed on Exhibit A assumed, Moody S’s obligations
with respect to the Loan and the Loan Documents; and

 

A.       Original
Lender assigned its interest in the Loan and the Loan Documents to Lender and Lender is the current holder of all of Original
Lender’s interest in the Loan and the Loan Documents; and

 

B.       MOODY
NATIONAL INTERNATIONAL-FORT WORTH HOLDING, LLC, a Delaware limited liability company (“Borrower”), is assuming
the obligations of Original Borrower under the Loan and the Loan Documents pursuant to that certain Assumption Agreement (the
“Assumption Agreement”) dated as of the date hereof (the “Assumption”); and

 

C.        Lender
is not willing to consent to the Assumption unless Guarantor unconditionally guarantees payment and performance to Lender of the
Guaranteed Obligations (as herein defined); and

 

D.         Guarantor
is the owner of a direct or indirect interest in Borrower and controls Borrower, and Guarantor will directly benefit from Lender’s
consenting to the Assumption. Guarantor, each affiliate of Guarantor (if any) that controls Guarantor (any such entity, a “Controlling
Affiliate”), and each other affiliate of Borrower that is controlled by Guarantor or by any Controlling Affiliate, is
herein referred to as “Borrower’s Affiliate.”

 

     

     

    

  

NOW,
THEREFORE, as an inducement to Lender to consent to the Assumption, and for other good and valuable consideration, the receipt
and legal sufficiency of which are hereby acknowledged, Guarantor hereby agrees as follows:

 

ARTICLE
I

 

NATURE
AND SCOPE OF GUARANTY

 

1.1       Guaranty
of Obligation. Guarantor hereby irrevocably and unconditionally guarantees to Lender (and its successors and assigns) the
payment and performance of the Guaranteed Obligations (as hereinafter defined) as and when the same shall be due and payable,
whether by lapse of time, by acceleration of maturity or otherwise. Guarantor hereby irrevocably and unconditionally covenants
and agrees that it is liable for the Guaranteed Obligations as a primary Borrower, and that Guarantor shall fully perform each
and every obligation herein.

 

1.2       Definition
of Guaranteed Obligations. As used herein, the term “Guaranteed Obligations” shall mean the Debt (as defined in
the Note) in the event (i) any petition or proceeding for bankruptcy, reorganization or arrangement pursuant to federal bankruptcy
law, or any similar federal or state law, shall be filed by Borrower or Borrower’s Affiliates, or if Borrower or Borrower’s
Affiliates, or their respective agents (at the direction of Borrower or Borrower’s Affiliate), affiliates, officers or employees
consent to, acquiesce in, arrange or otherwise participate in bringing about the institution of such petition or proceeding against
Borrower without Lender’s prior written consent, or (ii) if subsequent to the commencement of any voluntary bankruptcy proceeding
with respect to Borrower, any involuntary bankruptcy proceeding is brought by Lender against Borrower and Borrower or Borrower’s
Affiliate files any motion contesting the same (each of the facts, events, acts or circumstances described in the foregoing clauses
(i) and (ii) with respect to Borrower is herein referred to as a “Special Recourse Event”). Guarantor shall also be
liable for, and shall indemnify, defend and hold Lender, its successors and assigns, and their respective shareholders, employees,
officers, directors, and agents (each an “Indemnified Party”) harmless from and against any loss, cost, expense, damage,
claim or other obligation (including without limitation reasonable attorneys’ fees and court costs) incurred or suffered
by Lender (“Lender’s Cost”) arising out of or in connection with the following:

 

(i)       any
fraud or intentional material misrepresentation by Borrower or Borrower’s Affiliate in connection with the Loan Documents;

 

(ii)      any
breach of the Environmental Liabilities Agreement executed by Borrower and Guarantor for the benefit of Lender, dated on or about
the date hereof, including the indemnification provisions contained therein;

 

(iii)     any
application in violation of the Loan Documents by Borrower or Borrower’s Affiliate of any funds derived from the Property,
including security deposits, insurance proceeds and condemnation awards;

 

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(iv)     after
the occurrence of an Event of Default or otherwise to the extent the Loan Documents require such application, the failure of Borrower
or Borrower’s Affiliate to apply proceeds of rents (including rents collected in advance) or any other receipts in respect
of the leases (lease termination and modification payments and recoveries upon defaulted leases) and other income or funds derived
from the Property or any other collateral when received to the costs of maintenance and operation of the Property and to the payment
of taxes, lien claims, insurance premiums, monthly payments of principal and interest or escrow payments or other payments due
under the Loan Documents;

 

(v)      if
Borrower or Borrower’s Affiliate or their respective agents (at the direction of Borrower or Borrower’s Affiliate),
affiliates, officers or employees contests or in any way interferes with, directly or indirectly, any foreclosure action or sale
commenced by Lender or with any other enforcement of Lender’s rights, powers or remedies under any of the Loan Documents
or under any document evidencing, securing or otherwise relating to the Property or any other collateral for the Debt (whether
by making any motion, bringing any counterclaim, claiming any defense, seeking any injunction or other restraint, commencing any
action seeking to consolidate any such foreclosure or other enforcement with any other action, or otherwise), other than contests
brought in good faith;

 

(vi)     the
seizure or forfeiture of the Property, or any portion thereof, or Lender’s interest therein, resulting from criminal wrongdoing
by Borrower or Borrower’s Affiliate or their respective agents (at the direction of Borrower or Borrower’s Affiliate),
affiliates, officers or employees;

 

(vii)    in
the event Lender has waived (or Borrower has failed to pay or the Mortgage does not require) the monthly collection for real and
personal property taxes, assessments, insurance premiums, or ground rents, then failure by Borrower or Borrower’s Affiliate
to pay any or all such taxes, assessments, premiums and rents to the extent funds are available to Borrower or Borrower’s
Affiliate from the Property and Borrower or Borrower’s Affiliate has not applied available funds to the Property;

 

(viii)   material
intentional physical waste of the Property caused by the acts or omissions of Borrower or Borrower’s Affiliate;

 

(ix)     any
knowing failure by Borrower to insure the Property in accordance with the Loan Documents to the extent funds are available to
Borrower and Borrower’s affiliate from the Property and Borrower or Borrower’s Affiliate has not applied available
funds to the Property;

 

(x)      the
removal or disposal of any portion of the Property by Borrower after an Event of Default to the extent such Property is not replaced
by Borrower with like property of equivalent value, function and design;

 

(xi)     if
there shall occur any material Event of Default by Borrower under the provisions of Section 9 of the Mortgage (entitled
“Single Purpose Entity/Separateness”), other than any breach of Sections 9(d) (with respect to the payment
of permitted trade debt only), 9(f), 9(k) and 9(p);

 

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(xii)    if
there shall occur any material Event of Default by Borrower under the provisions of Section 12 of the Mortgage (entitled
“Transfer or Encumbrance of the Property”); and

 

(xiii)  if,
without Lender’s prior written consent (unless such consent is nor required under the Mortgage), Borrower enters into any
amendment to, modification of or termination of the Master Lease (as defined in the Mortgage).

 

The
Guaranteed Obligations shall also include, and Guarantor shall be personally liable for and pay to Lender upon demand all fees,
costs and expenses, including without limitation reasonable legal fees and expenses, incurred by Lender and its servicers in connection
with the enforcement by Lender of any obligations for which Borrower is personally liable under Section 12 of the Note
and under the Environmental Liabilities Agreement, and any obligations of Guarantor for which Guarantor is liable hereunder, together
with interest accrued on any such unpaid obligations at the Default Rate (as such term is defined in the Note) to the extent the
unpaid obligations are not paid in full within ten (10) days of demand therefor.

 

1.3       Nature
of Guaranty. This Guaranty is an irrevocable, absolute, continuing guaranty of payment and performance, is joint and several
(if there is more than one Guarantor with respect to this Guaranty), and is not a guaranty of collection. This Guaranty may not
be revoked by Guarantor and shall continue to be effective with respect to any Guaranteed Obligations arising or created after
any attempted revocation by Guarantor after (if Guarantor is a natural person) Guarantor’s death (in which event this Guaranty
shall be binding upon Guarantor’s estate and Guarantor’s legal representatives and heirs. The fact that at any time
or from time to time the Guaranteed Obligations may be increased or reduced shall not release or discharge the obligation of Guarantor
to Lender with respect to Guaranteed Obligations. This Guaranty may be enforced by Lender and any subsequent holder of the Note
and shall not be discharged by the assignment or negotiation of all or part of the Note.

 

1.4       Guaranteed
Obligations Not Reduced by Offset. The Guaranteed Obligations and the liabilities and obligations of Guarantor to Lender hereunder
shall not be reduced, discharged or released because or by reason of any existing or future offset, claim or defense of Borrower,
or any other party, against Lender or against payment of the Guaranteed Obligations, whether such offset, claim or defense arises
in connection with the Guaranteed Obligations (or the transactions creating the Guaranteed Obligations) or otherwise.

 

1.5       Payment
by Guarantor. To the extent Guarantor is obligated or required under this Guaranty to make such payment, if all or any part
of the Guaranteed Obligations, as limited by Section 1.2, shall not be punctually paid when due, whether at maturity or earlier
by acceleration or otherwise, Guarantor shall, within ten (10) business days of written demand by Lender, and without presentment,
protest, notice of protest, notice of non-payment, notice of intention to accelerate the maturity, notice of acceleration of the
maturity, or any other notice whatsoever, pay in lawful money of the United States of America, the amount due on the Guaranteed
Obligations to Lender at Lender’s address as set forth herein. Such demand(s) may be made at any time coincident with or
after the time for payment of all or part of the Guaranteed Obligations, and may be made from time to time with respect to the
same or different items of Guaranteed Obligations. Such demand shall be deemed made, given and received in accordance with the
notice provisions hereof.

 

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1.6       No
Duty to Pursue Others. It shall not be necessary for Lender (and Guarantor hereby waives any rights which Guarantor may have
to require Lender), in order to enforce such payment by Guarantor, first to (a) institute suit or exhaust its remedies against
Borrower or others liable on the Loan or the Guaranteed Obligations or any other person, (b) enforce Lender’s rights against
any collateral which shall ever have been given to secure the Loan, (c) enforce Lender’s rights against any other guarantors
of the Guaranteed Obligations, (d) join Borrower or any others liable on the Guaranteed Obligations in any action seeking to enforce
this Guaranty, (e) exhaust any remedies available to Lender against any collateral which shall ever have been given to secure
the Loan, or (f) resort to any other means of obtaining payment of the Guaranteed Obligations. Lender shall not be required to
mitigate damages or take any other action to reduce, collect or enforce the Guaranteed Obligations, unless required by applicable
law.

 

1.7       Waivers.
Guarantor agrees to the provisions of the Loan Documents, and hereby waives notice of (a) any loans or advances made by Lender
to Borrower, (b) acceptance of this Guaranty, (c) any amendment or extension of the Note or of any other Loan Documents, (d) the
execution and delivery by Borrower and Lender of any other loan or credit agreement or of Borrower’s execution and delivery
of any promissory notes or other documents arising under the Loan Documents or in connection with the Property, (e) the occurrence
of any breach by Borrower or Event of Default, (f) Lender’s transfer or disposition of the Guaranteed Obligations, or any
part thereof, (g) sale or foreclosure (or posting or advertising for sale or foreclosure) of any collateral for the Guaranteed
Obligations, (h) protest, proof of non-payment or default by Borrower, or (i) any other action at any time taken or omitted by
Lender, and, generally, all demands and notices of every kind in connection with this Guaranty, the Loan Documents, any documents
or agreements evidencing, securing or relating to any of the Guaranteed Obligations and the obligations hereby guaranteed.

 

1.8       Payment
of Expenses. In the event that Guarantor should breach or fail to timely perform any provisions of this Guaranty, Guarantor
shall, within ten (10) business days of written demand by Lender, pay Lender all costs and expenses (including court costs and
reasonable attorneys’ fees) incurred by Lender in the enforcement hereof or the preservation of Lender’s rights hereunder.
The covenant contained in this Section shall survive the payment and performance of the Guaranteed Obligations.

 

1.9       Effect
of Bankruptcy. In the event that, pursuant to any insolvency, bankruptcy, reorganization, receivership or other action under
any debtor relief law, or any judgment, order or decision thereunder, Lender must rescind or restore any payment, or any part
thereof, received by Lender in satisfaction of the Guaranteed Obligations, as set forth herein, any prior release or discharge
from the terms of this Guaranty given to Guarantor by Lender shall be without effect, and this Guaranty shall remain in full force
and effect. It is the intention of Borrower and Guarantor that Guarantor’s obligations hereunder shall not be discharged
except by Guarantor’s performance of such obligations and then only to the extent of such performance.

 

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1.10     Deferment
of Rights of Subrogation, Reimbursement and Contribution.

 

 (a)       Notwithstanding
any payment or payments made by Guarantor hereunder, Guarantor will not assert or exercise any right of Lender or of Guarantor
against Borrower to recover the amount of any payment made by Guarantor to Lender by way of subrogation, reimbursement, contribution,
indemnity, or otherwise arising by contract or operation of law, and Guarantor shall not have any right of recourse to or any
claim against assets or property of Borrower, until ninety-one (91) days after the Loan and all other Obligations of Borrower
under the Loan Documents shall have been paid in full and satisfied, all of such rights being herein expressly waived by Guarantor.
Guarantor agrees not to seek contribution or indemnity or other recourse from any other guarantor. If any amount shall nevertheless
be paid to Guarantor by Borrower prior to payment in full of the Obligations (hereinafter defined), such amount shall be held
in trust for the benefit of Lender and shall forthwith be paid to Lender to be credited and applied to the Obligations, whether
matured or unmatured. The provisions of this Section shall survive the termination of this Guaranty, and any satisfaction and
discharge of Borrower by virtue of any payment, court order or any applicable law.

 

 (b)       Notwithstanding
the provisions of Subsection 1.10(a), Guarantor shall have and be entitled to (i) all rights of subrogation otherwise provided
by applicable law in respect of any payment it may make or be obligated to make under this Guaranty, and (ii) all claims it would
have against Borrower in the absence of Subsection 1.10(a) and to assert and enforce same, in each case on and after, but
at no time prior to, the date (the “Subrogation Trigger Date”) which is ninety-one (91) days after the date
on which all sums owed to Lender under the Loan Documents (the “Obligations”) have been paid in full, if and
only if (x) no Event of Default of the type described in Subsections 22(f) or 22(g) of the Mortgage with respect
to Borrower exists on the Subrogation Trigger Date, and (y) the existence of Guarantor’s rights under this Subsection
1.10(b) would not make Guarantor a creditor (as defined in the Code, as such term is hereinafter defined) of Borrower in any
insolvency, bankruptcy, reorganization or similar proceeding commenced on or prior to the Subrogation Trigger Date.

 

1.11     Bankruptcy
Code Waiver. It is the intention of the parties that Guarantor shall not be deemed to be a “creditor” or
“creditors” (as defined in Section 101 of the United States Bankruptcy Code (the “Bankruptcy Code”)) of
Borrower, by reason of the existence of this Guaranty, in the event that Borrower becomes a debtor in any proceeding under the
Bankruptcy Code, and in connection herewith, Guarantor hereby waives any such right as a “creditor” under the Bankruptcy
Code. This waiver is given to induce Lender to consent to the Assumption. After the Loan is paid in full and there shall be no
obligations or liabilities under this Guaranty outstanding, this waiver shall be deemed to be terminated.

 

1.12    Borrower.
The term “Borrower” as used herein shall include any new or successor corporation, association, partnership
(general or limited), joint venture, trust or other individual organization formed as a result of any merger, reorganization,
sale, transfer, devise, gift, or bequest of Borrower or any interest in Borrower.

 

1.13    Intentionally
Deleted.

 

1.14     Obligations
Not Secured. This Guaranty is not secured by any of the Loan Documents securing the Loan.

 

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ARTICLE
II

 

EVENTS
AND CIRCUMSTANCES NOT REDUCING OR DISCHARGING GUARANTOR’S OBLIGATIONS

 

Guarantor
hereby consents and agrees to each of the following, and agrees that Guarantor’s obligations under this Guaranty shall not
be released, diminished, impaired, reduced or adversely affected by any of the following, and waives any common law, equitable,
statutory or other rights (including without limitation rights to notice) which Guarantor might otherwise have as a result of
or in connection with any of the following:

 

2.1       Modifications.
Any renewal, extension, increase, modification, alteration or rearrangement of all or any part of the Guaranteed Obligations,
Note, Loan Documents, or other document, instrument, contract or understanding between Borrower and Lender, or any other parties,
pertaining to the Guaranteed Obligations or any failure of Lender to notify Guarantor of any such action.

 

2.2       Adjustment.
Any adjustment, indulgence, forbearance or compromise that might be granted or given by Lender to Borrower or Guarantor.

 

2.3       Condition
of Borrower or Guarantor. The insolvency, bankruptcy, arrangement, adjustment, composition, liquidation, disability, dissolution
or lack of power of Borrower, Guarantor or any other party at any time liable for the payment of all or part of the Guaranteed
Obligations; or any dissolution of Borrower or Guarantor, or any sale, lease or transfer of any or all of the assets of Borrower
or Guarantor, or any changes in the shareholders, partners or members of Borrower or Guarantor; or any reorganization of Borrower
or Guarantor.

 

2.4       Invalidity
of Guaranteed Obligations. The invalidity, illegality or unenforceability of all or any part of the Guaranteed Obligations,
or any document or agreement executed in connection with the Guaranteed Obligations, for any reason whatsoever, including without
limitation the fact that (a) the Guaranteed Obligations, or any part thereof, exceeds the amount permitted by law, (b) the act
of creating the Guaranteed Obligations or any part thereof is ultra vires, (c) the officers or representatives executing the Assumption
Agreement or the other Loan Documents or otherwise creating the Guaranteed Obligations acted in excess of their authority, (d)
the Guaranteed Obligations violate applicable usury laws, (e) Borrower has valid defenses, claims or offsets (whether at law,
in equity or by agreement) which render the Guaranteed Obligations wholly or partially uncollectible from Borrower, (f) the creation,
performance or repayment of the Guaranteed Obligations (or the execution, delivery and performance of any document or instrument
representing part of the Guaranteed Obligations or executed in connection with the Guaranteed Obligations, or given to secure
the repayment of the Guaranteed Obligations) is illegal, uncollectible or unenforceable, or (g) the Assumption Agreement or any
of the other Loan Documents have been forged or otherwise are irregular or not genuine or authentic, it being agreed that Guarantor
shall remain liable hereon regardless of whether Borrower or any other person be found not liable on the Guaranteed Obligations
or any part thereof for any reason.

 

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2.5       Release
of Borrowers. Any full or partial release of the liability of Borrower on the Guaranteed Obligations, or any part thereof,
or of any co guarantors, or any other person or entity now or hereafter liable, whether directly or indirectly, jointly, severally,
or jointly and severally, to pay, perform, guarantee or assure the payment of the Guaranteed Obligations, or any part thereof,
it being recognized, acknowledged and agreed by Guarantor that Guarantor may be required to pay the Guaranteed Obligations in
full without assistance or support of any other party, and Guarantor has not been induced to enter into this Guaranty on the basis
of a contemplation, belief, understanding or agreement that other parties will be liable to pay or perform the Guaranteed Obligations,
or that Lender will look to other parties to pay or perform the Guaranteed Obligations.

 

2.6       Other
Collateral. The taking or accepting of any other security, collateral or guaranty, or other assurance of payment, for all
or any part of the Guaranteed Obligations.

 

2.7       Release
of Collateral. Any release, surrender, exchange, subordination, deterioration, waste, loss or impairment (including without
limitation negligent, willful, unreasonable or unjustifiable impairment) of any collateral, property or security, at any time
existing in connection with, or assuring or securing payment of, all or any part of the Guaranteed Obligations.

 

2.8       Care
and Diligence. The failure of Lender or any other party to exercise diligence or reasonable care in the preservation, protection,
enforcement, sale or other handling or treatment of all or any part of such collateral, property or security, including but not
limited to any neglect, delay, omission, failure or refusal of Lender (a) to take or prosecute any action for the collection of
any of the Guaranteed Obligations, (b) to foreclose, or initiate any action to foreclose, or, once commenced, prosecute to completion
any action to foreclose upon any security therefor, or (c) to take or prosecute any action in connection with any instrument or
agreement evidencing or securing all or any part of the Guaranteed Obligations.

 

2.9       Unenforceability.
The fact that any collateral, security, security interest or lien contemplated or intended to be given, created or granted as
security for the repayment of the Guaranteed Obligations, or any part thereof, shall not be properly perfected or created, or
shall prove to be unenforceable or subordinate to any other security interest or lien, it being recognized and agreed by Guarantor
that Guarantor is not entering into this Guaranty in reliance on, or in contemplation of the benefits of, the validity, enforceability,
collectability or value of any of the collateral for the Guaranteed Obligations.

 

2.10     Intentionally
Deleted.

 

2.11     Merger.
The reorganization, merger or consolidation of Borrower into or with any other corporation or entity.

 

2.12     Preference.
Any payment by Borrower to Lender is held to constitute a preference under bankruptcy laws, or for any reason Lender is required
to refund such payment or pay such amount to Borrower or someone else.

 

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2.13     Other
Actions Taken or Omitted. Any other action taken or omitted to be taken with respect to the Loan Documents, the Guaranteed
Obligations, or the security and collateral therefor, whether or not such action or omission prejudices Guarantor or increases
the likelihood that Guarantor will be required to pay the Guaranteed Obligations pursuant to the terms hereof, it is the unambiguous
and unequivocal intention of Guarantor that Guarantor shall be obligated to pay the Guaranteed Obligations when due, notwithstanding
any occurrence, circumstance, event, action, or omission whatsoever, whether or not contemplated, and whether or not otherwise
or particularly described herein, which obligation shall be deemed satisfied only upon the full and final payment and satisfaction
of the Guaranteed Obligations.

 

ARTICLE
III

 

REPRESENTATIONS
AND WARRANTIES

 

To
induce Lender to consent to the Assumption, Guarantor represents and warrants to Lender as follows:

 

3.1       Benefit.
Guarantor is an affiliate of Borrower, is the owner of a direct or indirect interest in Borrower, and has received, or will receive,
direct or indirect benefit from the making of this Guaranty with respect to the Guaranteed Obligations.

 

3.2       Familiarity
and Reliance. Guarantor is familiar with the financial condition of Borrower and is familiar with the value of any and all
collateral intended to be created as security for the payment of the Note or Guaranteed Obligations; however, Guarantor is not
relying on such financial condition or the collateral as an inducement to enter into this Guaranty.

 

3.3       No
Representation by Lender. Neither Lender nor any other party has made any representation, warranty or statement to Guarantor
in order to induce Guarantor to execute this Guaranty.

 

3.4       Guarantor’s
Financial Condition. As of the date hereof, and after giving effect to this Guaranty, Guarantor is solvent, has assets which,
fairly valued, exceed its obligations, liabilities and debts and has property and assets sufficient to satisfy and repay its obligations
and liabilities.

 

3.5       Legality.
The execution, delivery and performance by Guarantor of this Guaranty and the consummation of the transactions contemplated hereunder
do not contravene or conflict with any law, statute or regulation whatsoever to which Guarantor is subject or constitute a default
(or an event which with notice or lapse of time or both would constitute a default) under, or result in the breach of, any indenture,
deed to secure debt, mortgage, deed of trust, charge, lien, or any contract, agreement or other instrument to which Guarantor
is a party. This Guaranty is a legal and binding obligation of Guarantor and is enforceable in accordance with its terms, except
as limited by bankruptcy, insolvency or other laws of general application relating to the enforcement of creditors’ rights.  

 

3.6       Survival.
All representations and warranties made by Guarantor herein shall survive the execution hereof.

 

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3.7       Review
of Documents. Guarantor has examined the Note and all of the Loan Documents.

 

3.8       Litigation.
Except as otherwise disclosed to Lender, there are no proceedings pending or, so far as Guarantor knows, threatened before any
court or administrative agency which, if decided adversely to Guarantor, would materially adversely affect the financial condition
of Guarantor or the authority of Guarantor to enter into, or the validity or enforceability of, this Guaranty.

 

3.9       Tax
Returns. Guarantor has filed all required federal, state and local tax returns and has paid all taxes as shown on such returns
as they have become due. No claims have been assessed and which remain unpaid with respect to such taxes.

 

ARTICLE
IV

 

SUBORDINATION
OF CERTAIN INDEBTEDNESS

 

4.1       Subordination
of All Guarantor Claims. Upon the occurrence of an Event of Default or the occurrence of an event which would, with the giving
of notice or the passage of time, or both, constitute an Event of Default, Guarantor shall not receive or collect, directly or
indirectly, from Borrower or any other party any amount upon the Guarantor Claims. As used herein, the term “Guarantor Claims”
shall mean all debts and liabilities of Borrower to Guarantor, whether such debts and liabilities now exist or are hereafter incurred
or arise, or whether the obligations of Borrower thereon be direct, contingent, primary, secondary, several, joint and several,
or otherwise, and irrespective of whether such debts or liabilities be evidenced by note, contract, open account, or otherwise,
and irrespective of the person or persons in whose favor such debts or liabilities may, at their inception, have been, or may
hereafter be created, or the manner in which they have been or may hereafter be acquired by Guarantor. The Guarantor Claims shall
include without limitation all rights and claims of Guarantor against Borrower (arising as a result of subrogation or otherwise)
as a result of Guarantor’s payment of all or a portion of the Guaranteed Obligations to the extent the provisions of Section
1.10 hereof are unenforceable.

 

4.2       Claims
in Bankruptcy. In the event of receivership, bankruptcy, reorganization, arrangement, debtor’s relief, or other insolvency
proceedings involving Borrower as debtor, Lender shall have the right to prove its claim in any such proceeding so as to establish
its rights hereunder and receive directly from the receiver, trustee or other court custodian dividends and payments which would
otherwise be payable upon Guarantor Claims. Guarantor hereby assigns such dividends and payments to Lender. Should Lender receive,
for application upon the Guaranteed Obligations, any such dividend or payment which is otherwise payable to Guarantor, and which,
as between Borrower and Guarantor, shall constitute a credit upon the Guarantor Claims, then upon payment to Lender in full of
the Guaranteed Obligations, Guarantor shall become subrogated to the rights of Lender to the extent that such payments to Lender
on the Guarantor Claims have contributed toward the liquidation of the Guaranteed Obligations, and such subrogation shall be with
respect to that portion of the Guaranteed Obligations which would have been unpaid if Lender had not received dividends or payments
upon the Guarantor Claims.

 

     10

     

    

  

4.3       Payments
Held in Trust. In the event that, notwithstanding anything to the contrary in this Guaranty, Guarantor should receive any
funds, payment, claim or distribution which is prohibited by this Guaranty, Guarantor agrees to hold in trust for Lender an amount
equal to the amount of all funds, payments, claims or distributions so received, and agrees that it shall have absolutely no dominion
over the amount of such funds, payments, claims or distributions so received except to pay them promptly to Lender, and Guarantor
covenants promptly to pay the same to Lender.

 

4.4       Liens
Subordinate. Guarantor agrees that any liens, security interests, judgment liens, charges or other encumbrances upon Borrower’s
assets securing payment of the Guarantor Claims shall be and remain inferior and subordinate to any liens, security interests,
judgment liens, charges or other encumbrances upon Borrower’s assets securing payment of the Guaranteed Obligations, regardless
of whether such encumbrances in favor of Guarantor or Lender presently exist or are hereafter created or attach. Without the prior
written consent of Lender, Guarantor shall not (a) exercise or enforce any creditor’s right it may have against Borrower,
except to the extent permitted under Section 4.1 hereof, or (b) foreclose, repossess, sequester or otherwise take steps or institute
any action or proceedings (judicial or otherwise, including without limitation the commencement of, or joinder in, any liquidation,
bankruptcy, rearrangement, debtor’s relief or insolvency proceeding) to enforce any liens, mortgages, deeds of trust, security
interests, collateral rights, judgments or other encumbrances on assets of Borrower held by Guarantor.

 

ARTICLE
V

 

MISCELLANEOUS

 

5.1       Waiver.
No failure to exercise, and no delay in exercising, on the part of Lender, any right hereunder shall operate as a waiver thereof,
nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right.
The rights of Lender hereunder shall be in addition to all other rights provided by law. No modification or waiver of any provision
of this Guaranty, nor consent to departure therefrom, shall be effective unless in writing and no such consent or waiver shall
extend beyond the particular case and purpose involved. No notice or demand given in any case shall constitute a waiver of the
right to take other action in the same, similar or other instances without such notice or demand.

 

5.2       Joint
and Several Liability. If Guarantor consists of more than one person or entity, the obligations and liabilities of each such
person or entity hereunder shall be joint and several.

 

5.3       Notices.
Any notice, demand, statement, request or consent made hereunder shall be in writing and shall be deemed to be received by the
addressee on the day such notice is tendered to a nationally recognized overnight delivery service or on the next business day
following the third business day following the day such notice is deposited with the United States Postal Service first class
certified mail, return receipt requested, in either instance, addressed to the address, as set forth below, of the party to whom
such notice is to be given, or to such other address as either party shall in like manner designate in writing. The addresses
of the parties hereto are as follows:

 

     11

     

    

 

	 	Guarantor:
	 	 
	 	Moody National REIT I, Inc.
	 	6363 Woodway, Suite 110
	 	Houston, TX 77057
	 	Attention: Asset Management
	 	 
	 	with a copy to:
	 	 
	 	Gresham Savage Nolan & Tilden, PC
	 	550 West C Street, Suite 1810
	 	San Diego, California 92101
	 	Attention: Jerome A. Grossman
	 	 
	 	Lender:
	 	 
	 	U.S. Bank National Association, as trustee, successor-in-interest to Bank of America, N.A., as trustee, successor-in-interest to Wells Fargo Bank, N.A., as trustee for the registered holders of COBALT CMBS Commercial Mortgage Trust 2007-C3, Commercial Mortgage Pass-Through Certificates, Series 2007-C3
	 	c/o Wells Fargo Bank, National Association
	 	Commercial Mortgage Servicing
	 	1901 Harrison Street, 7th Floor
	 	Oakland, California 94612
	 	Attention: Asset Manager
	 	 
	 	with a copy to:
	 	 
	 	K&L Gates, LLP
	 	Hearst Tower, 47th Floor
	 	214 North Tryon Street
	 	Charlotte, North Carolina 28202-2367
	 	Attention: Stacy G. Ackermann

 

5.4       Governing
Law; Jurisdiction. This Guaranty shall be governed by and construed in accordance with the laws of the State in which the
real property encumbered by the Mortgage is located and the applicable laws of the United States of America. Guarantor hereby
irrevocably submits to the jurisdiction of any court of competent jurisdiction located in the state in which the Property is located
in connection with any proceeding out of or relating to this Guaranty.

 

     12

     

    

  

5.5       Invalid
Provisions. If any provision of this Guaranty is held to be illegal, invalid, or unenforceable under present or future laws
effective during the term of this Guaranty, such provision shall be fully severable and this Guaranty shall be construed and enforced
as if such illegal, invalid or unenforceable provision had never comprised a part of this Guaranty, and the remaining provisions
of this Guaranty shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision
or by its severance from this Guaranty, unless such continued effectiveness of this Guaranty, as modified, would be contrary to
the basic understandings and intentions of the parties as expressed herein.

 

5.6       Amendments.
This Guaranty may be amended only by an instrument in writing executed by the party or an authorized representative of the party
against whom such amendment is sought to be enforced.

 

5.7       Parties
Bound; Assignment. This Guaranty shall be binding upon and inure to the benefit of the parties hereto and their respective
successors, assigns and legal representatives, provided, however, that Guarantor may not, without the prior written consent of
Lender, assign any of its rights, powers, duties or obligations hereunder.

 

5.8       Headings.
Section headings are for convenience of reference only and shall in no way affect the interpretation of this Guaranty.

 

5.9       Recitals.
The recital and introductory paragraphs hereof are a part hereof, form a basis for this Guaranty and shall be considered prima
facie evidence of the facts and documents referred to therein.

 

5.10     Defined
Terms. Terms used herein but not defined herein shall have the meanings ascribed to them in the Mortgage (as modified by the
Assumption Agreement).

 

5.11     Counterparts.
To facilitate execution, this Guaranty may be executed in as many counterparts as may be convenient or required. It shall not
be necessary that the signature or acknowledgment of, or on behalf of, each party, or that the signature of all persons required
to bind any party, or the acknowledgment of such party, appear on each counterpart. All counterparts shall collectively constitute
a single instrument. It shall not be necessary in making proof of this Guaranty to produce or account for more than a single counterpart
containing the respective signatures of, or on behalf of, and the respective acknowledgments of, each of the parties hereto. Any
signature or acknowledgment page to any counterpart may be detached from such counterpart without impairing the legal effect of
the signatures or acknowledgments thereon and thereafter attached to another counterpart identical thereto except having attached
to it additional signature or acknowledgment pages.

 

5.12     Financial
Statements. Guarantor shall furnish or cause to be furnished to Lender the following:

 

 (a)       within
ninety (90) days after the close of each fiscal year of Guarantor (unless an Event of Default has occurred and is continuing),
a balance sheet of Guarantor dated as of the close of such fiscal year; and

 

 (b)       from
time to time, such additional financial statements and financial information as Lender shall reasonably require.

 

     13

     

    

 

All
balance sheets shall include, among other things, a statement of profit and loss, disclosure of all contingent liabilities and
changes in financial condition, together with such supporting schedules and documentation as Lender shall require. All balance
sheets shall be certified by Guarantor.

 

5.13     Rights
and Remedies. If Guarantor becomes liable for any indebtedness owing by Borrower to Lender, by endorsement or otherwise, other
than under this Guaranty, such liability shall not be in any manner impaired or affected hereby and the rights of Lender hereunder
shall be cumulative of any and all other rights that Lender may ever have against Guarantor. The exercise by Lender of any right
or remedy hereunder or under any other instrument, or at law or in equity, shall not preclude the concurrent or subsequent exercise
of any other right or remedy.

 

5.14     Entirety.
THIS GUARANTY EMBODIES THE FINAL, ENTIRE AGREEMENT OF GUARANTOR AND LENDER WITH RESPECT TO GUARANTOR’S GUARANTY OF THE GUARANTEED
OBLIGATIONS AND SUPERSEDES ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS, AND UNDERSTANDINGS, WHETHER WRITTEN OR
ORAL, RELATING TO THE SUBJECT MATTER HEREOF. THIS GUARANTY IS INTENDED BY GUARANTOR AND LENDER AS A FINAL AND COMPLETE EXPRESSION
OF THE TERMS OF THE GUARANTY, AND NO COURSE OF DEALING BETWEEN GUARANTOR AND LENDER, NO COURSE OF PERFORMANCE, NO TRADE PRACTICES,
AND NO EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OR OTHER EXTRINSIC EVIDENCE OF ANY NATURE
SHALL BE USED TO CONTRADICT, VARY, SUPPLEMENT OR MODIFY ANY TERM OF THIS GUARANTY AGREEMENT. THERE ARE NO ORAL AGREEMENTS BETWEEN
GUARANTOR AND LENDER.

 

5.15     Waiver
of Right to Trial by Jury. GUARANTOR HEREBY AGREES NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND
WAIVES ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THIS GUARANTY,
THE MORTGAGE, OR THE OTHER LOAN DOCUMENTS, OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION THEREWITH. THIS WAIVER
OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY GUARANTOR AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH INSTANCE
AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE. LENDER IS HEREBY AUTHORIZED TO FILE A COPY OF
THIS SECTION IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY GUARANTOR.

 

     14

     

    

  

EXECUTED
as of the day and year first above written.

 

	 	GUARANTOR:
	 	 
	 	MOODY NATIONAL REIT I, INC., a Maryland corporation

 

	 	By:	 
	 	Name:	Brett C. Moody
	 	Title:	Chief Executive Officer
	 	 	 
	 	 	 

 

     

     

    

 

EXHIBIT
A

 

Prior
Assumption DocumentsMOODY NATIONAL REIT I, INC. 10-K

Execution Copy

 

Exhibit 10.61

ENVIRONMENTAL LIABILITIES AGREEMENT

 

THIS
ENVIRONMENTAL LIABILITIES AGREEMENT (this “Agreement”) is made as of _______________ __, 2015 by MOODY NATIONAL
INTERNATIONAL-FORT WORTH HOLDING, LLC, a Delaware limited liability company (“Borrower”), and Moody
National REIT I, Inc., a Maryland corporation (“Principal”; Borrower and Principal are hereinafter sometimes
referred to collectively as “Indemnitor”) to and for the benefit of U.S. BANK NATIONAL ASSOCIATION, IN ITS
CAPACITY AS TRUSTEE, SUCCESSOR-IN-INTEREST TO BANK OF AMERICA, N.A., IN ITS CAPACITY AS TRUSTEE, SUCCESSOR-IN-INTEREST TO WELLS
FARGO BANK, N.A,, IN ITS CAPACITY AS TRUSTEE FOR THE REGISTERED HOLDERS OF COBALT CMBS COMMERCIAL MORTGAGE TRUST 2007-C3, COMMERCIAL
MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2007-C3, together with its successors, transferees and assigns (“Lender”).

 

ARTICLE
I.

 

DEFINITIONS

 

Section
1.1        Definitions.  As used herein, the
following terms shall have the following meanings:

 

Asbestos:  Asbestos or any substance containing asbestos.

 

Assumption
Agreement:  That certain Assumption Agreement dated as of the date hereof, pursuant to which Borrower is assuming the obligations
of Moody National TPS Fort Worth S, LLC, a Delaware limited liability company, and Moody National TPS Fort Worth H, LLC, a Delaware
limited liability company, and each of the entities listed on Exhibit A, each a Delaware limited liability company (collectively,
“Original Borrower”), under the Loan and the Loan Documents.

 

Environmental
Law:  Any federal, state or local law, statute, ordinance, code, rule, regulation, license, authorization, decision, order,
injunction or decree which pertains to health, safety or the environment, as they may be affected by exposure to, or the presence
of, Hazardous Substances (including but not limited to, ground or air or water or noise pollution or contamination, and underground
or aboveground tanks) and shall include, without limitation, the Comprehensive Environmental Response, Compensation and Liability
Act of 1980, as amended (“CERCLA”), the Resource Conservation and Recovery Act of 1976, as amended (“RCRA”),
and any state or federal lien or superlien or environmental clean-up statutes, and regulations, rules, guidelines, or standards
promulgated pursuant thereto all as amended from time to time.

 

    	 

    	 

    

 

Hazardous
Substance:  Any (a) substance, whether solid, liquid or gaseous (i) which is listed, defined or regulated as a “hazardous
substance,” “hazardous waste” or “solid waste,” or otherwise classified as hazardous or toxic, in
or pursuant to any Environmental Law, (ii) which is or contains Asbestos, radon, any polychlorinated biphenyl, urea formaldehyde
foam insulation, explosive or radioactive material, lead paint, or motor fuel or other petroleum hydrocarbons, or (iii) which
causes or poses a reasonable threat to cause a contamination on the Property or any adjacent property or a hazard to the environment
or to the health or safety of persons on or about the Property; or (b) fungus, mold, mildew, spores or other biological or microbial
agents in such quantities that the presence thereof adversely affects human health, impairs occupancy or materially adversely
affects the value or utility of the Property. Hazardous Substances shall not include: (i) those substances used by Borrower or
tenants at the Property in the ordinary course of their respective businesses in compliance with Environmental Laws, (ii) ordinary
cleaning solvents and common chemicals used by tenants during the ordinary cleaning and maintenance of such tenant’s space
in compliance with all applicable Environmental Laws, and (iii) routine office cleaning janitorial or other similar materials
and/or supplies necessary to operate the Property for its current use.

 

Mortgage:  That certain Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing, dated as of May 18, 2007, pursuant
to which Original Borrower granted CITIGROUP GLOBAL MARKETS REALTY CORP., a New York corporation (“Original Lender”),
first lien on the Property more particularly described therein, including the real property or interest therein described in Exhibit
B attached hereto and incorporated herein by this reference, which was later assigned by Original Lender to Lender, as the
same may be amended, restated, extended, supplemented, or otherwise modified from time to time.

 

Remediation:  Any investigation, site monitoring, containment, cleanup, removal, restoration, or other activities of any kind which are required
under applicable Environmental Law.

 

Storage
Tanks:  Any underground or aboveground storage tanks, whether filled or empty.

 

Section
1.2      Other Defined Terms.  Any capitalized
term utilized herein shall have the meaning as specified in the Mortgage (as modified by the Assumption Agreement), unless such
term is otherwise specifically defined herein.

 

ARTICLE
II.

 

WARRANTIES AND REPRESENTATIONS

 

Indemnitor
hereby represents and warrants to Lender that, to the best of Indemnitor’s actual knowledge as follows:

 

Section
2.1       Property Compliance.  Except
as disclosed in that certain Phase I Site Assessment Reports prepared by EBI Consulting for Original Lender in connection with
the closing of the Loan, the Property and the operations conducted thereon do not violate any Environmental Laws.

 

     2

     

    

 

Section
2.2        No Violations.  Without limitation to
Section 2.1 above, except as previously disclosed in writing to Lender, the Property and operations conducted thereon by
the current owner or operator of such Property, are not the subject of any existing, pending, or threatened action, suit, investigation,
inquiry, or proceeding by any governmental or nongovernmental entity or person or to any Remediation under any Environmental Law.

 

Section
2.3       Authorizations.  All notices, permits,
licenses, registrations, or similar authorizations, if any, required to be obtained or filed in connection with the ownership,
operation, or use of the Property as they relate to Hazardous Substances, including, without limitation, the existence of any
Storage Tanks at the Property or the past or present generation, treatment, storage, disposal, or release of a Hazardous Substance
into the environment, have been duly obtained or filed and have been duly renewed or maintained. Indemnitor or current tenants
under existing leases have been issued all required federal, state, and local licenses, certificates, or permits relating to,
and Indemnitor and the Property are in compliance in all respects with all applicable Environmental Laws, including, but not limited
to, federal, state, and local laws, rules, and regulations relating to, air emissions, water discharge, noise emissions, solid
or liquid waste disposal, hazardous waste or materials, or other environmental, health, or safety matters.

 

Section
2.4       Hazardous Substance.  Except as disclosed
in writing to Lender, the Property does not contain any Hazardous Substance in violation of applicable Environmental Laws. Except
as disclosed in writing to Lender, the Property does not contain any Storage Tanks or Asbestos.

 

Section
2.5        Intentionally Deleted.

 

Section
2.6       Indemnitor
Compliance.  Indemnitor has not undertaken, permitted, authorized, or suffered the presence, use, manufacture,
handling, generation, transportation, storage, treatment, discharge, release, burial, or disposal on, under, from or about
the Property of any Hazardous Substance or the transportation to or from the Property of any Hazardous Substance except in
compliance with applicable Environmental Laws.

 

Section 2.7       No Pending Environmental Litigation.  Except as otherwise previously disclosed to Lender in writing, there is no pending or, to Indemnitor’s knowledge, threatened
litigation, proceeding, or investigation before or by any administrative agency in which any person or entity alleges or is investigating
any alleged presence, release, threat of release, placement on, under, from or about the Property, or the manufacture, handling,
generation, transportation, storage, treatment, discharge, burial, or disposal on, under, from or about the Property, or the transportation
to or from the Property, of any Hazardous Substance in violation of any applicable Environmental Law.

 

Section
2.8       No
Notices.  Except as otherwise previously disclosed to Lender in writing, Indemnitor has not received any written
notice, and has no actual knowledge, that any governmental authority or any employee or agent thereof has determined, or threatens
to determine, or is investigating any allegation that there is a presence, release, threat of release, placement on, under, from
or about the Property, or the use, manufacture, handling, generation, transportation, storage, treatment, discharge, burial, or
disposal on, under, from or about the Property, or the transportation to or from the Property, of any Hazardous Substance.

 

     3

     

    

 

Section
2.9       No Communications.  Except as otherwise
previously disclosed to Lender in writing, there have been no written communications or written agreements made by Indemnitor
with any governmental authority or, to Indemnitor’s knowledge, any private entity, including, but not limited to, any prior
owners or operators of the Property, relating in any way to the presence, release, threat of release, placement on, under or about
the Property, or the use, manufacture, handling, generation, transportation, storage, treatment, discharge, burial, or disposal
on, under or about the Property, or the transportation to or from the Property, of any Hazardous Substance, except for communications
made in the ordinary course of business by Indemnitor in connection with permits, reports, and routine inspections issued, prepared
or conducted by government agencies or authorities having jurisdiction over the Property or any private entity, including but
not limited to, any prior owners or operators of the Property.

 

Section
2.10     Other Properties.  Neither Indemnitor,
nor, to the knowledge of Indemnitor, any other person, including, but not limited to, any predecessor owner, tenant, licensee,
occupant, user, or operator of all or any portion of the Property, has ever caused, permitted, authorized or suffered, and Indemnitor
will not cause, permit, authorize, or suffer, any Hazardous Substance to be placed, held, located, or disposed of, on, under or
about any other real property, all or any portion of which is legally or beneficially owned (or any interest or estate therein
which is owned) by Indemnitor in any jurisdiction now or hereafter having in effect a so-called “superlien” law or
ordinance or any part thereof, the effect of which law or ordinance would be to create a lien on the Property to secure any obligation
in connection with the “superlien” law of such other jurisdiction.

 

Section
2.11     Benefit.  Principal
is the owner of a direct or indirect interest in Borrower, and has received or will receive direct or indirect benefit from the
making of this Agreement with respect to the Assumption of the Debt.

 

Section
2.12     Familiarity and Reliance.  Principal
is familiar with the financial condition of Borrower, and with the value of any and all collateral securing the payment of the
Debt; however, such Principal is not relying on such financial condition or the collateral as an inducement to enter into this
Agreement.

 

Section
2.13     No Representation by Lender.  Neither
Lender nor any other party has made any representation, warranty or statement to Indemnitor in order to induce Indemnitor to execute
this Agreement.

 

Section
2.14     Indemnitor’s
Financial Condition.  As of the date hereof, and after giving effect to this Agreement, Indemnitor is solvent,
and has assets which, fairly valued, exceed its obligations, liabilities and debts, and has property and assets sufficient to
satisfy and repay its obligations and liabilities.

 

Section
2.15     Legality.  The
execution, delivery and performance by Indemnitor of this Agreement and the consummation of the transactions contemplated
hereunder do not contravene or conflict with any law, statute or regulation whatsoever to which Indemnitor is subject or
constitute a default under, or result in the breach of, any indenture, deed to secure debt, mortgage, deed of trust, charge,
lien, or any contract, agreement or other instrument to which Indemnitor is a party. To Indemnitor’s knowledge, this
Agreement is a legal and binding obligation of Indemnitor and is enforceable in accordance with its terms, except as limited
by bankruptcy, insolvency or other laws of general application relating to the enforcement of creditors’
rights.

 

     4

     

    

 

Section
2.16      Review of Documents.  Indemnitor
has examined the Note and all of the Loan Documents.

 

Section
2.17      Litigation.
Except as otherwise disclosed to Lender, there are no proceedings pending or, so far as Indemnitor knows, threatened before
any court or administrative agency which, if decided adversely to Indemnitor, would materially adversely affect the financial
condition of Indemnitor or the authority of Indemnitor to enter into, or the validity or enforceability of this
Agreement.

 

Section
2.18      Intentionally Deleted.

 

ARTICLE
III.

 

AFFIRMATIVE COVENANTS

 

Indemnitor
hereby unconditionally covenants and agrees with Lender, until the entire Debt (as defined in the Note) shall have been paid in
full and all of the obligations of Indemnitor under the Loan Documents shall have been fully performed and discharged, or alternatively,
until such time as Lender has taken title to the Property through foreclosure or deed-in-lieu of foreclosure, as follows:

 

Section
3.1        Operations.  Indemnitor shall not use,
generate, manufacture, produce, store, release, discharge, treat, or dispose of on, under, from or about the Property or transport
to or from the Property any Hazardous Substance or knowingly allow any other person or entity to do so except in compliance with
Environmental Laws. Indemnitor shall not install or permit to be installed any Asbestos or Storage Tanks at the Property and shall
remedy all violations of Environmental Laws with respect thereto of which Indemnitor has actual knowledge.

 

Section
3.2        Compliance.  Indemnitor shall keep and
maintain the Property in compliance with, and shall not cause or knowingly permit the Property to be in violation of, any Environmental
Law and upon discovery of any noncompliance shall promptly take corrective action to remedy such noncompliance to the extent required
by applicable laws such that no noncompliance continues to exist.

 

     5

     

    

 

Section
3.3        Monitoring.  Indemnitor shall establish
and maintain, at Indemnitor’s sole expense, a system to assure and monitor continued compliance with Environmental Laws,
the existence of any Storage Tank on the Property and the presence of Hazardous Substances on the Property, by Borrower, which
system shall include at a minimum annual reviews of such compliance by employees or agents of Indemnitor (including Property Manager)
who are familiar with the requirements of the Environmental Laws. Upon the written request of Lender not more than once per calendar
year, but at any time after the occurrence and during the continuance of an Event of Default or at such other time as Lender has
reasonable grounds to believe that Hazardous Substances are or have been released or stored or disposed of on or around the Property
or that the Property may be in violation of Environmental Laws, Indemnitor shall perform or cause to be performed an inspection
or audit of the Property indicating the presence or absence of Hazardous Substances at the Property (“Environmental Compliance
Report”) in scope reasonably satisfactory to Lender by an environmental consulting firm approved in advance by Lender,
provided, however, that if any Environmental Compliance Report indicates a violation of any Environmental Law or a need for Remediation,
such system shall include at the request of Lender a detailed review (“Environmental Remediation Report”) of
the status of such violation by such environmental consultant. Indemnitor shall furnish each Environmental Compliance Report or
Environmental Remediation Report to Lender within sixty (60) days after Lender so requests in writing, together with such additional
information as Lender may reasonably request. If Indemnitor fails to contract for such an Environmental Compliance Report or Environmental
Remediation Report after ten (10) business days written notice, or fails to provide either such report within sixty (60) days
from receipt of such written request, Lender may order same, and Indemnitor grants to Lender and its employees, agents, contractors
and consultants access to the Property upon prior written notice to Indemnitor and at all times subject to the rights of tenants
under the leases, and a license (which is coupled with an interest and irrevocable while the Mortgage is in effect) to perform
inspections and tests, including (but not limited to) the taking of soil borings and air and groundwater samples. All costs of
such reports, inspections and tests shall be an obligation of Indemnitor which Indemnitor promises to pay to Lender pursuant to
this Agreement. All such costs shall constitute a portion of the Debt, secured by the Mortgage and the other Loan Documents.

 

Section
3.4       Notices.  Indemnitor shall give
prompt written notices to Lender of: (a) written notice received by Indemnitor of any proceeding or inquiry by any governmental
or nongovernmental entity or person with respect to the presence of any Hazardous Substance on, under, from or about the Property,
the migration thereof from or to other property, the disposal, storage, or treatment of any Hazardous Substance generated or used
on, under or about the Property, (b) all claims made or threatened in writing by any third party against Indemnitor or the Property
or any other operator of the Property relating to any release reportable under any applicable Environmental Law, loss or injury
resulting from any Storage Tank or Hazardous Substance upon Indemnitor becoming aware of the same, and (c) Indemnitor’s
discovery of any occurrence or condition on any real property adjoining or in the vicinity of the Property that will cause the
Property or any part thereof to be subject to any investigation or cleanup of the Property pursuant to any Environmental Law or
that will result in Indemnitor becoming liable for any cost related to any investigation or cleanup of such Property.

 

Section
3.5        Legal Proceedings.  Indemnitor shall
permit Lender to join and participate in, as a party if it so elects, any legal proceedings or actions initiated with respect
to the Property in connection with any Environmental Law, Hazardous Substance or Storage Tank and Indemnitor shall pay all reasonable
attorneys’ fees incurred by Lender in connection therewith.

 

Section
3.6       Remediation.  In the event that the
Property (or any portion thereof) becomes the subject of any required Remediation, as required in writing by the applicable governmental
agency having jurisdiction over the Property, Indemnitor shall commence such Remediation no later than the earlier of (a) thirty
(30) days after written demand by Lender for performance thereof, or (b) such shorter period of time as may be required under
applicable law, and thereafter shall diligently prosecute the same to completion in accordance with applicable law. All Remediation
shall be performed by contractors reasonably approved in advance by Lender, and under the supervision of a consulting engineer
reasonably approved by Lender. All costs and expenses of such Remediation shall be paid by Indemnitor including, without limitation,
Lender’s reasonable attorneys’ fees and costs incurred in connection with monitoring or review of such Remediation.
In the event Indemnitor shall fail to timely commence, or cause to be commenced, or fail to diligently prosecute to completion,
such Remediation, Lender may, but shall not be required to, cause such Remediation to be performed, and all costs and expenses
thereof, or incurred in connection therewith, shall become part of the Debt.

 

     6

     

    

 

Section
3.7       In
the event the environmental report prepared in connection with the Loan recommended the development of an operation and
maintenance program for the Property (“O&M Program”) such O&M Program was implemented and approved by
Original Lender or Lender.

 

ARTICLE
IV.

 

INDEMNIFICATION

 

INDEMNITOR
SHALL PROTECT, INDEMNIFY, AND HOLD HARMLESS LENDER AND ITS RESPECTIVE PARENTS, SUBSIDIARIES, SHAREHOLDERS, DIRECTORS, OFFICERS,
EMPLOYEES, REPRESENTATIVES, AGENTS, SUCCESSORS AND ASSIGNS (EACH AN “INDEMNIFIED PARTY”) FROM AND AGAINST ALL
LIABILITIES, OBLIGATIONS, CLAIMS, DEMANDS, DAMAGES, PENALTIES, CAUSES OF ACTION, LOSSES, FINES, COSTS AND EXPENSES (INCLUDING
WITHOUT LIMITATION REASONABLE ATTORNEYS’ FEES AND EXPENSES), DIRECTLY OR INDIRECTLY ARISING FROM OR RELATED TO, WITH REGARD
TO THE PROPERTY, ANY RELEASE OF OR EXPOSURE TO ANY HAZARDOUS SUBSTANCE (INCLUDING PERSONAL INJURY OR DAMAGE TO PROPERTY), NONCOMPLIANCE
WITH ANY ENVIRONMENTAL LAW, REMEDIATION, OR ARISING UNDER ANY ENVIRONMENTAL LAW. THE INDEMNIFICATION OBLIGATIONS OF INDEMNITOR
HEREUNDER SHALL BE DEEMED TO CONSTITUTE A PART OF THE DEBT SECURED BY THE MORTGAGE AND THE OTHER LOAN DOCUMENTS. NOTWITHSTANDING
THE FOREGOING, IN THE EVENT OF A FORECLOSURE OF THE PROPERTY OR DEED-IN-LIEU OF FORECLOSURE, INDEMNITOR SHALL NOT BE LIABLE FOR
ANY INDEMNIFIED CLAIMS TO THE EXTENT THE CONDITION, EVENT OR CIRCUMSTANCE GIVING RISE TO SUCH INDEMNIFIED CLAIM DID NOT EXIST
OR TAKE PLACE ON OR PRIOR TO, AND INSTEAD FIRST OCCURS AND ARISES AFTER, THE DATE THAT LENDER (OR ITS NOMINEE OR AFFILIATE) TAKES
TITLE TO THE PROPERTY BY FORECLOSURE OR DEED-IN-LIEU OF FORECLOSURE. MOREOVER, THE FOREGOING INDEMNITY SHALL NOT APPLY TO ANY
MATTERS ARISING OUT OF THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF AN INDEMNIFIED PARTY. FURTHER NOTWITHSTANDING THE FOREGOING,
PROVIDED THAT IF (i) INDEMNITOR DELIVERS TO LENDER A CURRENT SITE ASSESSMENT EVIDENCING THE PRESENCE OF NO ADDITIONAL ADVERSE
CONDITIONS ON THE PROPERTY OTHER THAN THOSE EXISTING ON THE DATE HEREOF, BUT IN ANY CASE, THE PRESENCE OF NO CONDITIONS GIVING
RISE TO A VIOLATION OF ANY ENVIRONMENTAL LAWS ON THE PROPERTY NOT EARLIER THAN NINETY (90) DAYS AND NOT LATER THAN TEN (10) BUSINESS
DAYS PRIOR TO (A) THE MATURITY DATE OF THE NOTE OR SUCH OTHER DATE AS THE LOAN MAY BE PAID IN FULL OR (B) THE EFFECTIVE DATE OF
A FORECLOSURE OR DEED IN LIEU OF FORECLOSURE OF THE PROPERTY (AS APPLICABLE, THE “TRANSFER DATE”) AND (ii)
ANY SUCH LOSS, LIABILITY, DAMAGE, CLAIM, COST OR EXPENSE DOES NOT ARISE FROM OR RELATE TO ANY RELEASE OF OR EXPOSURE TO ANY HAZARDOUS
MATERIAL (INCLUDING PERSONAL INJURY OR DAMAGE TO PROPERTY), NONCOMPLIANCE WITH ANY ENVIRONMENTAL LAWS, OR REMEDIATION EXISTING
PRIOR TO THE TRANSFER DATE, THEN INDEMNITOR SHALL BE RELEASED FROM ANY SUCH INDEMNIFIED MATTERS CREATED OR ARISING SOLELY FROM
EVENTS OR CONDITIONS FIRST EXISTING AFTER THE TRANSFER DATE.

 

     7

     

    

 

ARTICLE
V.

 

MISCELLANEOUS

 

Section
5.1       Survival
of Obligations.  Except as otherwise expressly set forth herein, each and all of the representations, covenants
and agreements and indemnities contained herein shall survive any termination, satisfaction or assignment of the Loan
Documents or the entry of a judgment of foreclosure, sale of the Property by nonjudicial foreclosure sale, delivery of a deed
in lieu of foreclosure or the exercise by Lender of any of its other rights and remedies in good faith under the Loan
Documents.

 

Section
5.2        Notices.  All
notices or other communications required or permitted to be given hereunder shall be given to the parties and become effective
as provided in the Assumption Agreement.

 

Section
5.3        Binding Effect.  All
pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural as the identity
of the person or persons referred to may require. Without limiting the effect of specific references in any provision of this
Agreement, the term “Indemnitor” shall be deemed to refer to each Indemnitor and the heirs, executors, administrators,
legal representatives, successors, transferees and assigns of each Indemnitor, all of whom shall be bound by the provisions of
this Agreement. Each reference herein to Lender shall be deemed to include its successors and assigns, to whose favor the provisions
of this Agreement shall also inure.

 

Section
5.4        Counterparts.  This Agreement may be
executed in any number of counterparts each of which shall be deemed to be an original but all of which when taken together shall
constitute one agreement.

 

Section
5.5    Governing Law.  THIS AGREEMENT
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE IN WHICH THE PROPERTY IS LOCATED AND THE APPLICABLE
LAWS OF THE UNITED STATES OF AMERICA.

 

     8

     

    

 

Section
5.6       Waiver of Jury
Trial.  INDEMNITOR, TO THE FULL EXTENT PERMITTED BY LAW, HEREBY KNOWINGLY, INTENTIONALLY AND VOLUNTARILY,
WITH AND UPON THE ADVICE OF COMPETENT COUNSEL, WAIVES, RELINQUISHES AND FOREVER FORGOES THE RIGHT TO A TRIAL BY JURY IN ANY ACTION
OR PROCEEDING BASED UPON, ARISING OUT OF, OR IN ANY WAY RELATING TO THIS AGREEMENT OR ANY CONDUCT, ACT OR OMISSION OF LENDER OR
INDEMNITOR, OR ANY OF INDEMNITOR’S DIRECTORS, OFFICERS, PARTNERS, MEMBERS, BENEFICIARIES, EMPLOYEES, AGENTS OR ATTORNEYS,
OR ANY OTHER PERSONS AFFILIATED WITH LENDER OR INDEMNITOR, IN EACH OF THE FOREGOING CASES, WHETHER SOUNDING IN CONTRACT, TORT
OR OTHERWISE. LENDER IS HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER
BY INDEMNITOR.

 

Section
5.7       Waivers.  Principal
agrees to the provisions of the Loan Documents, and hereby waives, except as expressly set forth in the Loan Documents, notice
of (a) any loans or advances made by Lender to Borrower, (b) acceptance of this Agreement, (c) any amendment or extension of the
Note or of any other Loan Documents, (d) the execution and delivery by Borrower and Lender of any other loan or credit agreement
or of Borrower’s execution and delivery of any promissory notes or other documents arising under the Loan Documents or in
connection with the Property, (e) the occurrence of any breach by Borrower or Event of Default, (f) Lender’s transfer or
disposition of the Debt, or any part thereof, (g) sale or foreclosure (or posting or advertising for sale or foreclosure) of any
collateral for the Debt, (h) protest, proof of non-payment or default by Borrower, or (i) any other action at any time taken or
omitted by Lender, and all demands and notices of every kind in connection with this Agreement, the Loan Documents, any documents
or agreements evidencing, securing or relating to any of the Debt.

 

Section
5.8        Deferment of Rights of Subrogation, Reimbursement
and Contribution.

 

(a)   Notwithstanding
any payment or payments made by any Principal hereunder, no Principal will not assert or exercise any right of Lender or of such
Principal against Borrower to recover the amount of any payment made by such Principal to Lender by way of subrogation, reimbursement,
contribution, indemnity, or otherwise arising by contract or operation of law, and such Principal shall not have any right of
recourse to or any claim against assets or property of Borrower, whether or not the obligations of Borrower have been satisfied,
all of such rights being herein expressly waived by such Principal. Each Principal agrees not to seek contribution or indemnity
or other recourse from any other Principal. If any amount shall nevertheless be paid to a Principal by Borrower or another Principal
prior to payment in full of the Debt, such amount shall be held in trust for the benefit of Lender and shall forthwith be paid
to Lender to be credited and applied to the Debt, whether matured or unmatured. The provisions of this section shall survive the
termination of this Agreement, and any satisfaction and discharge of Borrower by virtue of any payment, court order or any applicable
law.

 

     9

     

    

 

(b)   Notwithstanding
the provisions of subsection 5.8(a), each Principal shall have and be entitled to (i) all rights of subrogation otherwise
provided by applicable law in respect of any payment it may make or be obligated to make under this Agreement and (ii) all claims
it would have against Borrower or any other Principal in the absence of subsection 5.8(a) and to assert and enforce same,
in each case on and after, but at no time prior to, the date (the “Subrogation Trigger Date”) which is the
date on which all sums owed to Lender under the Loan Documents have been paid in full, if and only if (A) no Event of Default
of the type described in subsections 22(f) or (g) of the Mortgage with respect to Borrower or any other Principal
exists on the Subrogation Trigger Date and (B) the existence of each Principal’s rights under this subsection 5.8(b)
would not make such Principal a creditor (as defined in the Code, as such term is hereinafter defined) of Borrower or any
other Principal in any insolvency, bankruptcy, reorganization or similar proceeding commenced on or prior to the Subrogation Trigger
Date.

 

Section
5.9        Bankruptcy Code Waiver.  It is the
intention of the parties that no Principal shall be deemed to be a “creditor” or “creditors” (as defined
in Section 101 of the United States Bankruptcy Code (the “Bankruptcy Code”) of Borrower, or any such Principal,
by reason of the existence of this Agreement, in the event that Borrower or any such Principal, becomes a debtor in any proceeding
under the Bankruptcy Code, and in connection herewith, such Indemnitor hereby waives any such right as a “creditor”
under the Bankruptcy Code. This waiver is given to induce Lender to consent to the Assumption.

 

Section
5.10     Agreement Not Secured by Mortgage.  This Agreement, the payment of all sums due hereunder and the performance and discharge of each and every obligation, covenant
and agreement of Borrower contained herein, are not deemed to be secured by the Mortgage. This Agreement, the payment of all sums
due hereunder and the performance and discharge of each and every obligation, covenant and agreement of Principal contained herein,
is not deemed to be secured by the Mortgage.

 

Section
5.11      Reliance.  Indemnitor
recognizes and acknowledges that in consenting to the Assumption, Lender is expressly and primarily relying on the truth and accuracy
of the warranties and representations set forth in this Agreement without any obligation to investigate the Property and notwithstanding
any investigation of the Property by Lender; that such reliance exists on the part of Lender prior hereto; that such warranties
and representations are a material inducement to Lender in consenting to the Assumption; and that Lender would not be willing
to consent to the Assumption in the absence of such warranties and representations.

 

Section
5.12      Joint and Several
Liability; Release.  If Indemnitor consists of more than one person or entity, the obligations and liabilities
of each such person or entity hereunder shall be joint and several. Any one or more parties liable upon or in respect of this
Agreement may be released without affecting the liability of any party not so released.

 

Section
5.13     Rights and Remedies
Cumulative.  The rights and remedies herein provided are cumulative and not exclusive of any rights or remedies
which Lender has under the Note, the Mortgage, or the Loan Documents or would otherwise have at law or in equity.

 

Section
5.14     Severability.  If
any term, condition or covenant of this Agreement shall be held to be invalid, illegal or unenforceable in any respect, this Agreement
shall be construed without such provision.

 

     10

     

    

 

Section
5.15     Headings.  The article, section and
subsection entitlements hereof are inserted for convenience of reference only and shall in no way alter, modify, or define, or
be used in construing the text of such articles, sections or subsections.

 

Section
5.16      No Oral Change.  This Agreement may
not be waived, extended, changed, discharged or terminated orally, or by any act or failure to act on the part of Indemnitor or
Lender, but only by an agreement in writing signed by the party against whom the enforcement of any modification, amendment, waiver,
extension, change, discharge or termination is sought.

 

[Signature
Page Follows]

 

     11

     

    

 

EXECUTED
as of the date first above written.

 

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

 

     

     

    

 

	 	PRINCIPAL:
	 	 
	 	MOODY
NATIONAL REIT I, INC., a Maryland corporation
	 	 
	 	By:	 
	 	Name:	Brett C. Moody
	 	Title:	Chief Executive Officer

 

     

     

    

 

	 	LENDER:
	 	 
	 	U.S. BANK NATIONAL ASSOCIATION, IN ITS CAPACITY AS TRUSTEE, SUCCESSOR-IN-INTEREST TO BANK OF AMERICA, N.A., IN ITS CAPACITY AS TRUSTEE, SUCCESSOR-IN-INTEREST TO WELLS FARGO BANK, N.A,, IN ITS CAPACITY AS TRUSTEE FOR THE REGISTERED HOLDERS OF COBALT CMBS COMMERCIAL MORTGAGE TRUST 2007-C3, COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2007-C3
	 	 
	 	By:	Wells Fargo Bank, National Association, solely in its capacity as Master Servicer, pursuant to that certain Pooling and Servicing Agreement dated as of August 1, 2007

 

	 	By:	 
	 	Name:	Joyce Fray
	 	Title:	Vice President

 

     

     

    

 

EXHIBIT A

 

Prior Assumption Documents

 

     

     

    

  

EXHIBIT B

 

Legal Description

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