Document:

Moody National REIT II, Inc. 8-K

 

Exhibit 10.3

ENVIRONMENTAL INDEMNITY

This ENVIRONMENTAL
INDEMNITY (this “Agreement”) is given as of this 27th day of September, 2017 by the Indemnitors (as
hereinafter defined) pursuant to the terms and conditions of a certain Term Loan Agreement by and among MOODY NATIONAL OPERATING
PARTNERSHIP II, LP, a Delaware limited partnership (“Borrower”), KeyBank National Association, a national banking
association, having an address at 1200 Abernathy Road NE, Suite 1550, Atlanta, Georgia 30328, and the other lending institutions
which become parties to the Loan Agreement (KeyBank National Association and the other lending institutions which become parties
to the Loan Agreement are collectively referred to as the “Lenders” and individually as the “Lender”),
and KeyBank National Association, a national banking association, as agent on behalf of the Lenders (hereinafter called the “Agent”)
(hereinafter, as same may be amended, restated, renewed, replaced or otherwise modified, the “Loan Agreement”).

As used herein:

A.       

The term “Environmental
Laws” shall mean all applicable past (which have current effect), present or future federal, state, county and local
laws, by-laws, rules, regulations, codes and ordinances, or any legally binding judicial or administrative interpretations thereof,
and the legally binding requirements of any Governmental Authority or authority having jurisdiction with respect thereto, applicable
to pollution, the regulation or protection (with respect to exposure to Hazardous Substances) of the environment, the health and
safety of persons and property (with respect to exposure to Hazardous Substances) and shall include, but not be limited to, all
orders, decrees, judgments and rulings imposed through any public or private enforcement proceedings, relating to the existence,
use, discharge, release, containment, transportation, generation, storage, management or disposal thereof, or otherwise regulating
or providing for the protection of the environment applicable to the Property and relating to Hazardous Substances or the existence,
use, discharge, release or disposal thereof. Environmental Laws presently include, but are not limited to, the following laws:
Comprehensive Environmental Response Compensation and Liability Act (42 U.S.C. §9601 et seq.), the Hazardous Substances
Transportation Act (49 U.S.C. §1801 et seq.), the Public Health Service Act (42 U.S.C. §300(f) et seq.)
, the Pollution Prevention Act (42 U.S.C. §13101 et seq.), the Federal Insecticide, Fungicide and Rodenticide Act (7
U.S.C. §136 et seq.), the Resource Conservation and Recovery Act (42 U.S.C. §6901 et seq.), the Federal
Clean Water Act (33 U.S.C. §1251 et seq.), The Federal Clean Air Act (42 U.S.C. §7401 et seq.), and the
applicable laws and regulations of each State in which any Property is located.

B.       

The term “Hazardous
Substances” shall mean and include (i) asbestos, toxic mold, flammable materials, explosives, radioactive or nuclear
substances, polychlorinated biphenyls, other carcinogens, oil and other petroleum products, radon gas, urea formaldehyde; (ii)
chemicals, gases, solvents, pollutants or contaminants that could be a detriment or pose a danger to the environment or to the
health or safety of any person; and (iii) any other hazardous or toxic materials, wastes and substances which are defined, determined
or identified as such in any past, present or future federal, state or local laws, by-laws, rules, regulations, codes or ordinances
or any legally binding judicial or administrative interpretation thereof in concentrations which violate Environmental Laws.

C.       

The term “Property”
shall mean, collectively, each property as more particularly described on Exhibit A attached hereto and made a part hereof,
as such Exhibit A may be amended from time to time, and shall also include any other tangible property in which Agent now
or hereafter receives a mortgage or security interest in connection with the Loan.

D.       

The term “Surrounding
Property” shall mean any property located within close proximity of the perimeter of the Property.

E.       

The term “Indemnitors”
shall mean, individually and collectively, and jointly and severally, Moody National Operating Partnership II, LP, a Delaware limited
partnership, Moody National REIT II, Inc. a Maryland corporation, MN REIT II TRS, Inc., a Delaware corporation, Moody National
1 Polito Lyndhurst Holding, LLC, Moody National International-Fort Worth Holding, LLC, MN Lyndhurst Venture, LLC, and MN Fort Worth
Venture, LLC.

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F.       

The term “Indemnified
Party” shall mean: (i) Agent and each of the Lenders; (ii) all those claiming by, through or under Agent or any
Lender, including any subsequent holder of the Loan and any present or future owner of a participation interest therein; and (iii) as
to each of the foregoing, their respective affiliate, parent and subsidiary corporations, and, as applicable, the respective officers,
directors, stockholders, agents, employees, accountants and attorneys of any one or more of them, and any person firm or entity
which controls, is controlled by, controlling, or under common control with, any one or more of them.

G.       

The term “Environmental
Enforcement Action” shall mean all actions, orders, requirements or liens instituted, threatened, required, completed,
imposed or placed by any Governmental Authority and all claims made or threatened by any other person against or with respect to
the Property or any Surrounding Property, or any present or past owner or occupant thereof, arising out of or in connection with
any of the Environmental Laws, any environmental condition, or the assessment, monitoring, clean-up containment remediation or
removal of, or damages caused or alleged to be caused by, any Hazardous Substances (i) located on or under the Property or any
Surrounding Property, (ii) emanating from the Property or any Surrounding Property, or (iii) generated, stored, transported, utilized,
disposed, managed, or released by any Indemnitor (whether or not on, under or from the Property or the Surrounding Property).

H.       

The terms “generated,”
“stored,” “transported,” “utilized,” “disposed,” “managed,”
“released” and “threat of release,” and all conjugates thereof, shall have the meanings and
definitions set forth in the Environmental Laws.

I.       

The term “Environmental
Reports” shall mean the reports identified on Exhibit B which is annexed hereto and made a part hereof.

J.       

All other capitalized
terms used in this Agreement which are not otherwise specifically defined herein shall have the same meaning herein as in the Loan
Agreement.

FOR VALUE RECEIVED,
and to induce Agent and the Lenders to grant the Loan and extend credit to Borrower as provided for in the Loan Agreement and the
other Loan Documents, Indemnitors hereby unconditionally agree as follows:

1.       

Compliance
with Environmental Laws.

1.1       

Compliance.
Until such time as all monetary Obligations of each Borrower with respect to the Loan have been paid in full, Indemnitors guaranty
and agree that each Borrower, or the other Indemnitors on behalf of such Borrower, shall comply in all material respects with all
applicable Environmental Laws and that each Borrower, or the other indemnitors on behalf of such Borrower, shall take all remedial
action necessary to avoid any liability of such Borrower, Agent, Lenders or any Indemnified Party, and to avoid the imposition
of, or to discharge, any liens on the Property resulting from any failure to comply with Environmental Laws applicable to the Property.

1.2       

Prohibitions.
Without limitation upon the generality of foregoing, Indemnitors and each of them agree that they shall not:

(a)       

release or permit
any release or threat of release of any Hazardous Substances on the Property except in compliance with Environmental Laws;

(b)       

except in compliance
with all Environmental Laws, generate or permit any Hazardous Substances to be generated on the Property;

(c)       

except in compliance
with all Environmental Laws, store, or utilize, or permit any Hazardous Substances to be stored or utilized on the Property;

(d)       

except in compliance
with all Environmental Laws dispose of or permit any Hazardous Substances to be disposed of on the Property; and

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(e)       

fail to operate,
maintain, repair and use the Property in compliance with Environmental Laws; or

(f)       

allow, permit or
suffer any other person or entity to operate, maintain, repair and use the Property except in compliance with Environmental Laws.

2.       

Notice of
Conditions. Indemnitors shall provide Agent with prompt written notice, but in no event later than ten (10) Business Days after
obtaining any actual knowledge or actual notice thereof, of any of the following conditions: (i) whether or not caused by any of
Indemnitors, the presence, or any release or threat of release, of any Hazardous Substances on, under or from the Property, or
any Surrounding Property in violation of Environmental Laws; (ii) any Environmental Enforcement Action instituted or threatened
with respect to the Property; or (iii) any condition or occurrence on the Property, or any Surrounding Property, that may constitute
a violation of Environmental Laws with respect to the Property.

3.       

Indemnitors’
Agreement to take Remedial Actions.

3.1       

Remedial Actions.
Upon any of Indemnitors becoming aware of the violation of any Environmental Law related to the Property, or the presence, or any
release or any threat of release, of any Hazardous Substances on, under, or from the Property or any Surrounding Property, whether
or not caused by any of Indemnitors, Indemnitors shall, subject to the rights to contest set forth in Section 6, immediately take
all actions: (A) to prevent, cure or eliminate any such violation of any such Environmental Law and, where applicable, to arrange
for the assessment, monitoring, clean-up, containment, removal, remediation, or restoration of the Property and, (B) to the extent
that the presence of any Hazardous Substances on the Surrounding Property originated on, under, or from the Property, or constitutes
a danger to the Property, as (i) are required pursuant to any Environmental Laws or by any Governmental Authority; and (ii) may
otherwise be advisable and reasonably requested by Agent consistent with applicable Environmental Laws.

3.2       

Security For
Costs. If the potential costs associated with the actions required in Section 3.1, the release of any lien against the Property,
and the release or other satisfaction of the liability, if any, of any of Indemnitors with respect to the Property arising under
or related to any of the Environmental Laws or any Environmental Enforcement Action are determined by Agent, in good faith, to
exceed $100,000, Agent shall have the right to require Indemnitors to provide, and Indemnitors shall provide, within thirty (30)
days after written request therefor, a bond, letter of credit or other similar financial assurance, in form and substance satisfactory
to Agent, in its good faith judgment, evidencing to Agent’s reasonable satisfaction that the necessary financial resources
will be unconditionally available to pay for all of the foregoing.

3.3       

Environmental
Assessments. Agent shall have the right to require Indemnitors, at their own cost and expense, to obtain a professional environmental
assessment of the Property in form and substance reasonably acceptable to Agent and sufficient in scope to comply with the requirements
of Section 4 upon the occurrence of any one or more of the following events: (i) an Event of Default; or (ii) upon receipt of any
notice of any of the conditions specified in Section 2 of this Agreement.

4.       

Agent’s
Rights to Inspect the Property and Take Remedial Actions.

4.1       

Agent’s
Rights. Agent may exercise its rights and remedies under this Section 4 only upon and during the existence of one or more of
the following events or conditions: (i) an Event of Default has occurred; (ii) an Indemnified Party, or an affiliate thereof, has
taken possession of all or some portion of the Property based upon an Event of Default; (iii) an Indemnified Party, or an affiliate
thereof, has acquired title to all or some portion of the Property by virtues of foreclosure or deed in lieu of foreclosure; or
(iv) a claim has been asserted against an Indemnified Party for which indemnification is provided in this Agreement, but none of
Indemnitors has undertaken and is continuing to pursue commercially reasonable efforts to remediate, defend and otherwise indemnify
any such Indemnified Party and to provide such Indemnified Party with reasonable assurances of such Indemnitor’s ability,
financially and otherwise, to satisfy Indemnitors’ obligations. In any of such events Agent shall have the right, but not
the obligation, through such representatives or independent contractors as it may designate, to enter upon the Property and to
expend funds to:

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4.1.1       

Assessments.
Cause one or more environmental assessments of the Property to be undertaken, if Agent in its reasonable discretion determines
that such assessment is appropriate. Such environmental assessments may include, without limitation, (i) detailed visual inspections
of the Property, including without limitation all storage areas, storage tanks, drains, drywells and leaching areas; (ii) the taking
of samples of soils and surface and sub-surface water; (iii) the performance of soils and ground water analysis; and (iv)
the performance of such other investigations or analysis as are necessary or appropriate and consistent with sound professional
environmental engineering practice and are reasonably necessary for Agent to obtain a complete assessment of the compliance of
the Property and the use thereof with all Environmental Laws and to make a determination as to whether or not there is any risk
of contamination (x) to the Property resulting from Hazardous Substances originating on, under, or from any Surrounding Property
or (y) to any Surrounding Property resulting from Hazardous Substances originating on, under, or from the Property;

4.1.2       

Cure. Cure
any breach of the representations, warranties, covenants and conditions made by or imposed upon Indemnitors under this Agreement
including without limitation any violation by any of Indemnitors, or by the Property owner, or by any other occupant, prior occupant
or prior owner thereof, of any of the Environmental Laws applicable to the Property;

4.1.3       

Prevention and
Precaution. Take all actions as are necessary to (i) prevent the migration of Hazardous Substances on, under, or from the Property
to any other property; (ii) clean-up, contain, remediate or remove any Hazardous Substances on, under, or from any other property
which Hazardous Substances originated on, under, or from the Property; or (iii) prevent the migration of any Hazardous Substances
on, under, or from any other property to the Property;

4.1.4       

Environmental
Enforcement Actions. Comply with, settle, or otherwise satisfy any Environmental Enforcement Action against any Indemnitor
including, but not limited to, the payment of any funds or penalties imposed by any Governmental Authority and the payment of all
amounts required to remove any lien or threat of lien on or affecting the Property; and

4.1.5       

General.
Comply with, settle, or otherwise satisfy any Environmental Law and correct or abate any environmental condition on, or which threatens,
the Property and which could cause damage or injury to the Property or the Surrounding Property or to any person.

4.2       

Recovery of
Costs. Any reasonable amounts paid or advanced by Agent or any Lender and all reasonable costs and expenditures incurred in
connection with any action taken pursuant to the terms of this Agreement, including but not limited to environmental consultants’
and experts’ fees and expenses, attorneys, fees and expenses, court costs and all costs of assessment monitoring clean-up,
containment, remediation, removal and restoration, with interest thereon if not paid within ten (10) days after demand shall be
a demand obligation of Indemnitors to Agent and, to the extent not prohibited by law (and so long as any Mortgage remains undischarged
of record), shall be added to the obligations secured by each such Mortgage when paid by Agent or any Lender and shall be secured
by the lien of each Mortgage and the other Security Documents as fully and as effectively and with the same priority as every other
obligation secured thereby.

4.3       

Agent and
the Lenders Not Responsible. The exercise by Agent or any Lender of any one or more of the rights and remedies set forth in
this Section 4 shall not operate or be deemed (a) to place upon Agent or any Lender any responsibility for the operation, control,
care, service, management, maintenance or repair of the Property or (b) make Agent or any Lender the “owner” or
“operator” of the Property or a “responsible party” within the meaning of any of the Environmental Laws.

4.4       

Agent’s
and the Lenders’ Subrogation. Furthermore, Agent and/or any Lender by making any such payment or incurring any such costs
shall be subrogated to all rights of each of Indemnitors or, to the extent permitted under applicable law, any other occupant of
the Property to seek reimbursement from any other person including, without limitation, any predecessor, owner or occupant of the
Property who may be a “responsible party” under any of the Environmental Laws in connection with the presence of Hazardous
Substances on or under or which emanated from, the Property.

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4.5       

Agent/Lender
May Stop. Without limiting the generality of the other provisions of this Agreement, any partial exercise by Agent or any Lender
of any one or more of the rights and remedies set forth in this Section 4 including, without limitation, any partial undertaking
on the part of Agent or any Lender to cure any failure by any of Indemnitors, or of the Property, or any other occupant, prior
occupant or prior owner thereof, to comply with any of the Environmental Laws shall not obligate Agent or any Lender to complete
such actions taken or require Agent or any Lender to expend further sums to cure such non-compliance.

5.       

Indemnification.
At all times, both before and after the repayment of the Loan, Indemnitors hereby jointly and severally agree that they shall at
their sole cost and expense indemnify, defend, exonerate, protect and save harmless each Indemnified Party against and from any
and all damages, losses, liabilities, obligations, penalties, claims, litigation, demands, defenses, judgment, suits, proceedings,
costs, disbursements or expenses of any kind or nature whatsoever, including, without limitation, attorneys’ and experts’
fees and disbursements, which may at any time be imposed upon, incurred by or asserted or awarded against any Indemnified Party
and arising from or out of:

5.1       

Hazardous
Substances. Any Hazardous Substances on, in, under or affecting, all or any portion of the Property or any Surrounding Property
on or before the date hereof, or which may hereafter affect all or any portion of the Property, whenever discovered in violation
of any Environmental Laws; provided that Indemnitors shall have no liability under this Section 5.1 to the extent that such Hazardous
Substances are placed on or first introduced to the Property subsequent to the date that Borrower’s interest and possession
of the Property or such portion thereof shall have fully terminated by power of sale, foreclosure of the Mortgage or acceptance
of a deed in lieu thereof;

5.2       

Environmental
Laws. The violation of any Environmental Law by Indemnitors, or with respect to the Property or any Surrounding Property which
affects the Property, existing on or before the date hereof or which may so exist in the future, whenever discovered; provided
that Indemnitors shall have no liability under this Section 5.2 to the extent that such Hazardous Substances or other circumstances
that are the subject of such violation of Environmental Law are placed on or first introduced to the Property subsequent to the
date that Borrower’s interest and possession of the Property or such portion thereof shall have fully terminated by power
of sale, foreclosure of the Mortgage or acceptance of a deed in lieu thereof;

5.3       

Breach of
Warranty, Representation or Covenant. Any breach of warranty or representation or covenant made by any Indemnitor under or
pursuant to this Agreement; and

5.4       

General.
The enforcement of this Agreement or the assertion by any Indemnitor of any defense to the obligations of an Indemnitor hereunder,
whether any of such matters arise before or after foreclosure of the Mortgage or other taking of title to or possession of all
or any portion of the Property by Agent or any other Indemnified Party, and specifically including therein, without limitation,
the following: (i) costs incurred for any of the matters set forth in Section 4 of this Agreement; and (ii) costs and
expenses incurred in ascertaining the existence or extent of any asserted violation of any Environmental Laws relating to the Property
and any remedial action taken on account thereof including, without limitation, the costs, fees and expenses of engineers, geologists,
chemists, other scientists, attorneys, surveyors, and other professionals, or testing and analyses performed in connection therewith.

6.       

Right to Contest.
Any Indemnitor, may contest in good faith any claim, demand, levy or assessment under any Environmental Laws, including, but not
limited to, any claim with respect to Hazardous Substances, by any person or entity if:

6.1       

Material Question
In Good Faith. The contest is based upon a material question of law or fact raised by Indemnitor in good faith;

6.2       

Diligent Pursuit.
Indemnitor properly commences and thereafter diligently pursues the contest;

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6.3       

No Impairment.
The contest will not materially impair the taking of any required remedial action with respect to such claim, demand, levy or assessment;

6.4       

Adequate Resources.
Indemnitor, demonstrates to Agent’s reasonable satisfaction that Indemnitor, has the financial capability to undertake and
pay for such contest and any remedial action then or thereafter necessary;

6.5       

Resolve by
Maturity. There is no reason to believe that the contest will not be resolved prior to the Maturity Date; and

6.6       

No Event of
Default. No Event of Default exists under the Loan Documents.

7.       

Waivers.
Indemnitors each hereby waive and relinquish to the fullest extent now or hereafter not prohibited by applicable law:

7.1       

Suretyship
Defenses. All suretyship defenses and defenses in the nature thereof;

7.2       

Marshalling.
Any right or claim of right to cause a marshalling of Indemnitor’s assets or of any security or to cause Agent to proceed
against any of the Collateral for the Loan before proceeding under this Agreement against any Indemnitor, or to require Agent to
proceed against Indemnitors in any particular order;

7.3       

Contribution.
Until ninety-one (91) days after the payment and satisfaction in full of all Obligations (other than surviving indemnity obligations
as to which no claim is then pending), all rights and remedies against any other Indemnitor, including, but not limited to, any
rights of subrogation, contribution, reimbursement, exoneration or indemnification pursuant to any express or implied agreement,
or now or hereafter accorded by applicable law to indemnitors, guarantors, sureties or accommodation parties.

7.4       

Notice.
Notice of the acceptance hereof, presentment, demand for payment, protest, notice of protest, or any and all notice of nonpayment,
nonperformance, nonobservance or default or other proof or notice of demand whereby to charge Indemnitors therefor;

7.5       

Statute of
Limitations. The pleading of any statute of limitations as a defense to such Indemnitor’s obligations hereunder; and

7.6       

Jury Trial.
The right to a trial by jury in any matter related to this Environmental Indemnity.

EACH INDEMNITOR, AGENT AND THE
LENDERS HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED
HEREON, ARISING OUT OF, UNDER OR IN-CONNECTION WITH THIS AGREEMENT OR ANY OTHER LOAN DOCUMENTS CONTEMPLATED TO BE EXECUTED IN CONNECTION
HEREWITH OR ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTIES; THIS WAIVER
BEING A MATERIAL INDUCEMENT FOR AGENT AND THE LENDERS TO ACCEPT THIS AGREEMENT AND TO MAKE THE LOAN;

8.       

Cumulative
Rights. Agent’s rights under this Agreement shall be in addition to and not in limitation of all of the rights and remedies
of Agent under the other Loan Documents. All rights and remedies of Agent shall be cumulative and may be exercised in such manner
and combination as Agent may determine.

 

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9.       

No Impairment.
The liability of Indemnitors hereunder shall in no way be limited or impaired by, and each Indemnitor hereby assents to and agrees
to be bound by, any amendment or modification of the provisions of the Loan Documents to or with Agent and the Lenders by any Indemnitor.
In addition, the liability of Indemnitors under this Agreement shall in no way be limited or impaired by:

9.1       

Extensions.
Any extensions of time for performance required by any of the Loan Documents;

9.2       

Amendments.
Any amendment to or modification of any of the Loan Documents;

9.3       

Transfer.
Any sale or assignment of the Loan, or any sale, assignment or foreclosure of the Note or Mortgage or any sale, transfer or all
or part of the Property;

9.4       

Exculpatory
Language. Any exculpatory, or nonrecourse, or limited recourse, provision in any of the Loan Documents limiting Agent’s
or any Lenders’ recourse to the Property encumbered by the Mortgage or to any other property or limiting Agent’s or
any Lenders’ rights to a deficiency judgment against Borrower or any other party;

9.5       

Inaccuracies.
The accuracy or inaccuracy of any of the representations or warranties made by or on behalf of any Indemnitor under the Loan Documents
or otherwise;

9.6       

Release.
The release of any Indemnitor, or of any other person or entity from performance or observance of any of the agreements, covenants,
terms of conditions contained in any of the Loan Documents by operation of law, Agent’s or any Lenders’ voluntary act,
or otherwise;

9.7       

Bankruptcy
or Reorganization. The filing of any bankruptcy or reorganization proceeding by or against any Indemnitor, any general partner
of any Borrower, or any subsequent owner of the Property;

9.8       

Substitution.
The release or substitution in whole or part of any collateral or security for the Loan;

9.9       

Failure To
Perfect. Agent’s failure to record the Mortgage or file any UCC financing statements (or Agent’s improper recording
or filing of any thereof) or to otherwise perfect, protect, secure, or insure any security interest or lien given as security for
the Loan;

9.10       

Release of
Parties. The release of any one or more of Indemnitors or any other party now or hereafter liable upon or in respect of this
Agreement or the Loan; or

9.11       

Invalidity.
The invalidity or unenforceability of all or any portions of any of the Loan Documents as to any Indemnitor or to any other person
or entity.

Any of the foregoing may be accomplished
with or without notice to Borrower or any Indemnitor or with or without consideration.

10.       

Delay Not
Waiver. No delay on Agent’s part in exercising any right, power or privilege hereunder or under any of the Loan Documents
shall operate as a waiver of any such privilege, power or right. No waiver by Agent in any instance shall constitute a waiver in
any other instance.

11.       

Warranties
and Representations. The Indemnitors each represent and warrant to Agent, the same to be true as of the date hereof (which
representations and warranties shall survive the closing of the Loan) that except as otherwise disclosed in the Environmental Reports:

11.1       

No Hazardous
Substances at Property. To Indemnitor’s knowledge, after due inquiry, except for such commercially reasonable amounts
used on the Property in the ordinary course of business in compliance with all applicable Environmental Laws, no Hazardous Substances
have been or are currently generated, stored, transported, utilized, disposed of, managed, released or located on, under or from
any Property, whether or not in reportable quantities, or in any manner introduced onto any Property including without limitation
any septic, sewage or other waste disposal systems servicing any Property;

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11.2       

No Violations
Claimed Regarding Property or Indemnitors. None of the Indemnitors has received any written notice from any state authority
in any state in which any Property is located, the United States Environmental Protection Agency or any other Governmental Authority
claiming that (i) any Property or any use thereof violates any of the Environmental Laws or (ii) any of the Indemnitors or any
of their respective employees or agents have violated any of the Environmental Laws with respect to any Property or any Surrounding
Property;

11.3       

No Liability
to Governmental Authorities. None of the Indemnitors has incurred any liability to the city or state in which any Property
is located, the United States of America or any other governmental authority under any of the Environmental Laws;

11.4       

No Lien on
Property. No liens against any Property have arisen under or related to any of the Environmental Laws;

11.5       

No Enforcement
Actions. There are no Environmental Enforcement Actions pending or threatened in writing;

11.6       

No Knowledge
of Hazardous Substances at Surrounding Property. None of the Indemnitors has any knowledge, after due inquiry, that any Hazardous
Substances have been or are currently generated, stored, transported, utilized, disposed of, managed, released or located on, under
or from the Surrounding Property in violation of or allegedly in violation of any of the Environmental Laws in a manner that affects
the Property;

11.7       

No Knowledge
of Violations Regarding Surrounding Property. No action or order has been instituted or threatened in writing by any person
or governmental authority arising out of or in connection with the Environmental Laws involving the assessment, monitoring, cleanup,
containment, remediation or removal of or damages caused or alleged lo be caused by any Hazardous Substances generated, stored,
transported, utilized, disposed of, managed, released or located on, under or from any Surrounding Property;

11.8       

No Underground
Storage Tanks. To Indemnitor’s knowledge, there are no underground storage tanks on or under any Property;

11.9       

No Dangerous
Conditions. To Indemnitor’s knowledge, no environmental condition exists on any Property which could cause any damage
or injury to such Property, any Surrounding Property or to any person;

11.10       

Valid and
Binding. This Agreement constitutes the legal, valid and binding obligation of each of the Indemnitors in accordance with the
respective terms hereof;

11.11       

Entity Matters.
That each Indemnitor is a duly organized validly existing entity in good standing under the laws of its organization and has all
requisite power and authority to conduct its business and to own its properties as now conducted or owned;

11.12       

No Violations.
The performance of the obligations evidenced hereby will not constitute a violation of any law, order, regulation, contract, organizational
document or agreement to which the Indemnitors or any of them is a party or by which any one or more of them or their property
is or may be bound;

11.13       

No Litigation.
There is no material litigation or administrative proceeding now pending or threatened in writing against the Indemnitors or any
of them which if adversely decided could materially impair the ability of any one or more of the Indemnitors to pay or perform
their respective obligations hereunder;

11.14       

Material Economic
Benefit. The granting of the Loan to the Borrowers will constitute a material economic benefit to each Indemnitor.

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12.       

Multiple Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. Each of the counterparts
shall constitute but one in the same instrument and shall be binding upon each of the parties individually as fully and completely
as if all had signed but one instrument so that the joint and several liability of each of the Indemnitors hereunder shall be unaffected
by the failure of any of the undersigned to execute any or all of said counterparts.

13.       

Notices.
Any notice or other communication in connection with this Agreement shall be made in the manner set forth in the Loan Agreement.

14.       

No Oral Change.
No provision of this Agreement may be changed, waived, discharged, or terminated orally by telephone or by any other means except
by an instrument in writing signed by the party against whom enforcement of the change, waiver or discharge or termination is sought.

15.       

Parties Bound;
Benefit. This Agreement shall be binding upon the Indemnitors and their respective successors, assigns, heirs and personal
representatives and shall be for the benefit of Agent and the Lenders, and of any subsequent holder of the Loan and of any owner
of a participation interest therein. In the event the Loan is sold or transferred, then the liability of the Indemnitors to Agent
and the Lenders shall then be in favor of both Agent and the Lenders originally named herein and each subsequent holder of the
Loan and any of interest therein.

16.       

Joint and
Several. The obligations of each of the Indemnitors and their respective successors, assigns, heirs and personal representatives
shall be joint and several.

17.       

Partial Invalidity.
Each of the provisions hereof shall be enforceable against each Indemnitor to the fullest extent now or hereafter permitted by
law. The invalidity or unenforceability of any provision hereof shall not limit the validity or enforceability of each other provision
hereof.

18.       

Governing
Law and Consent to Jurisdiction. This Agreement and the rights and obligations-of the parties hereunder shall in all respects
be governed by and construed and enforced in accordance with the laws of the State of New York without giving effect to principles
of conflicts of law. Notwithstanding the foregoing, for the purpose of defining Hazardous Substances and for the purpose of determining
the nature and extent of Environmental Laws and Environmental Laws applicable to the Property, applicable federal law and applicable
law of the State in which an applicable Property is located shall govern. The parties further agree that Agent may enforce its
rights under this Agreement and the other Loan Documents including, but not limited to, the rights to sue any Indemnitor in accordance
with applicable law. The Indemnitors hereby irrevocably submit to the nonexclusive jurisdiction of any New York State or any Federal
Court sitting in New York over any suit, action or proceeding arising out of or relating to this Agreement and the Indemnitors
hereby agree and consent that in addition to any methods of service of process provided for under applicable law, all service of
process in any such suit, action or proceeding in any action may be made by certified or registered mail, return receipt requested,
directed to the Indemnitors at the address indicated the Loan Agreement and service so made shall be completed five (5) days after
the same shall have been so mailed.

19.       

Survival.
The indemnification obligations of Indemnitor under this Agreement shall continue in effect and shall survive (among other events)
any payment and satisfaction of the Loan and the Obligations, any termination or discharge of any Mortgage, foreclosure, a deed-in-lieu
transaction, or release of any Collateral.

[Remainder of Page Intentionally Blank]

    	 	-9-	 

    	 

    

 

Witness the execution
and delivery hereof as of the date first written above.

	 	INDEMNITORS: 
	 	 
	 	MOODY NATIONAL REIT II, INC., 
	 	a Maryland corporation
	 	 
	 	 
	 	By: 	/s/ Brett C. Moody
	 	Name:	Brett C. Moody
	 	Title:	President

 

 

	 	MN REIT II TRS, INC., a Delaware corporation
	 	 
	 	 
	 	By: 	/s/ Brett C. Moody
	 	Name:	Brett C. Moody
	 	Title:	President

 

 

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

 

 

	 	MOODY NATIONAL 1 POLITO LYNDHURST HOLDING, LLC, 

a Delaware limited liability company
	 	 
	 	By: 	/s/ Brett C. Moody
	 	Name:	Brett C. Moody
	 	Title:	President

 

[Signature Page to Environmental Indemnity]

 

    	 

    	 

    

 

 

	 	MOODY NATIONAL INTERNATIONAL-FORT WORTH HOLDING, LLC, 

a Delaware limited liability company
	 	 
	 	 
	 	By: 	/s/ Brett C. Moody
	 	Name:	Brett C. Moody
	 	Title:	President

 

	 	MN LYNDHURST VENTURE, LLC, a Delaware limited liability company
	 	 
	 	 
	 	By: 	/s/ Brett C. Moody
	 	Name:	Brett C. Moody
	 	Title:	President

 

	 	MN FORT WORTH VENTURE, LLC, a Delaware limited liability company
	 	 
	 	 
	 	By: 	/s/ Brett C. Moody
	 	Name:	Brett C. Moody
	 	Title:	President

 

 

[Signature Page to Environmental Indemnity]

    	 

    	 

    

 

EXHIBIT A

LEGAL DESCRIPTIONS

I.        LYNDHURST,
NEW JERSEY

ALL that certain lot,
parcel or tract of land with buildings and improvements thereon erected, situate and lying in the Township of Lyndhurst, County
of Bergen, State of New Jersey, and being more particularly described as follows:

BEGINNING at a point,
said point being the following two courses from the point formed by the Intersection of the easterly line of Meadow Road (50 feet
wide) If extended, with the southerly line of Rutherford Avenue, also known as the South Service Road for Route No. 3 if extended;

a.       

South 38 degrees
37 minutes 29 seconds West, 422.96 feet along the easterly line of Meadow Road (50 feet wide) to a point; thence

b.       

South 52 degrees
15 minutes 01 seconds East, 430.01 feet to the point of beginning and running; thence

1.       

South 52 degrees
15 minutes 01 seconds East, 30.00 feet to a point; thence

2.       

North 37 degrees
50 minutes 42 seconds East, 378.65 feet to a point; thence

3.       

South 52 degrees
09 minutes 18 seconds East, 25.00 feet to a point on a curve; thence

4.       

Easterly along
a curve to the right having a radius of 25.00 feet for an arc length of 40.19 feet to a point of tangency on the southerly line
of Rutherford Avenue: thence

5.       

South 50 degrees
03 minutes 18 seconds East, 140.44 feet along the southerly line of Rutherford Avenue to a point of curvature; thence

6.       

Southerly along
a curve to the right having a radius of 35.00 feet for an arc length of 53.70 feet to a point of tangency on the westerly line
of Polito Avenue (70 feet wide); thence

7.       

South 37 degrees
50 minutes 42 seconds West, 541.56 feet along the westerly line of Polito Avenue (70 feet wide) to a point; thence

8.       

North 52 degrees
09 minutes 18 seconds West, 254.98 feet to a point; thence

9.       

North 37 degrees
50 minutes 42 seconds East, 178.00 feet to the point and place of BEGINNING.

Together with and subject
to the private right of way and easements for pedestrians and vehicles created by Easement Agreement recorded in Deed Book 3330
Page 283 as modified by Deed Book 4715 Page 183 and Deed Book 4861 Page 109.

Together with and subject
to the utility easement created in that Boundary Line Agreement dated April 6, 1951 by and between Holman Holding Company and Reinauer
Holding Corporation recorded May 10, 1951 in Deed Book 3200 Page 665.

Together with and subject
to the easements created in that Parking Deck Reciprocal Easements and Operating Reciprocal Maintenance and Restrictive Covenants
Agreement dated November 16, 1988 by and among Clear Meadow Associates, Hartz-Clear Meadow Limited Partnership, and MAM Associates,
recorded November 17, 1968 in Deed Book 7247 Page 867 and Memorandum of Participation Agreement recorded in Deed Book 7247 Page
979 and that Supplemental Parking Deck Easements and Operating, Reciprocal Maintenance and Restrictive Covenants Agreement dated
March 21, 1990 by the same parties recorded June 5, 1990 in Deed Book 7374 Page 051; and further modified in the Modification of
Parking Deck Reciprocal Easements and Operating Reciprocal Maintenance and Restrictive Covenants Agreement dated March 21, 1990
by the same parties recorded June 5, 1990 in Deed Book 7374 Page 121.

	Common address:	1 Polito Avenue, Lyndhurst, New Jersey
	Tax ID:	Lot 3.01 in Block 226 on the Tax Map of the Township of Lyndhurst, County of Bergen, State of New Jersey.

 

    	 	Exhibit A-1	 

    	 

    

 

II.        FORT
WORTH, TEXAS

TRACT I:

BEING A TRACT 2.1799
ACRE (94,958 SQUARE FEET) OF LAND SITUATED IN THE B.B.B. & C. RR. SURVEY, ABSTRACT NO. 217, AND BEING ALL OF LOT 3, BLOCK G,
OF OVERTON WEST ADDITION, AN ADDITION TO THE CITY OF FORT WORTH, AS RECORDED IN CABINET A, SLIDE 3793, PLAT RECORDS, TARRANT COUNTY,
TEXAS, AND BEING THE SAME TRACT OF LAND CONVEYED TO RUBY FT. WORTH SOUTHWEST LIMITED PARTNERSHIP, A DELAWARE LIMITED PARTNERSHIP,
BY DEED RECORDED IN COUNTY CLERK’S FILE NO. D205354773, REAL PROPERTY RECORDS, TARRANT COUNTY, TEXAS, AND BEING MORE PARTICULARLY
DESCRIBED BY METES AND BOUNDS AS FOLLOWS (BEARING BASIS IS THE NORTHEAST RIGHT-OF-WAY LINE OF STATE HIGHWAY 183 BEING NORTH 64
DEGREES 38 MINUTES 00 SECONDS WEST):

BEGINNING AT A 1/2
INCH IRON ROD FOUND WITH CAP FOR CORNER AT THE INTERSECTION OF THE NORTHWEST RIGHT-OF-WAY LINE OF INTERNATIONAL PLAZA (100 FOOT
RIGHT-OF-WAY) AND THE NORTHEAST RIGHT-OF-WAY LINE OF STATE HIGHWAY 183 ACCESS ROAD (VARIABLE WIDTH RIGHT-OF-WAY), SAID CORNER ALSO
BEING THE SOUTH CORNER OF SAID LOT 3;

THENCE NORTH 64 DEGREES
38 MINUTES 00 SECONDS WEST, ALONG SAID NORTHEAST RIGHT-OF-WAY LINE OF STATE HIGHWAY 183 ACCESS ROAD, A DISTANCE OF 284.84 FEET
TO A 1/2 INCH IRON ROD WITH CAP FOUND FOR CORNER, SAID CORNER BEING THE SOUTH CORNER OF LOT 4, BLOCK G OF OVERTON WEST ADDITION,
AN ADDITION TO THE CITY OF FORT WORTH, AS RECORDED IN CABINET A, SLIDE 5578, PLAT RECORDS, TARRANT COUNTY, TEXAS;

THENCE NORTH 25 DEGREES
22 MINUTES 36 SECONDS EAST, PASSING AT A DISTANCE OF 228.59 FEET THE EAST CORNER OF SAID LOT 4 AND THE SOUTH CORNER OF A TRACT
OF LAND CONVEYED TO OVERTON GREEN PROPERTY OWNER, BY DEED RECORDED IN INSTRUMENT NO. 201202101793, DEED RECORDS, TARRANT COUNTY,
TEXAS, AND CONTINUING A TOTAL DISTANCE OF 387.80 FEET TO A 1/2 INCH IRON ROD FOUND WITH CAP FOR CORNER, SAID CORNER LYING IN THE
SOUTHWEST LINE OF LOT 1A, BLOCK G OF OVERTON WEST ADDITION, AN ADDITION TO THE CITY OF FORT WORTH, AS RECORDED IN VOLUME 388/121,
PAGE 88, PLAT RECORDS, TARRANT COUNTY, TEXAS, SAID CORNER ALSO LYING IN A CURVE TO THE LEFT HAVING A DELTA ANGLE OF 12 DEGREES
56 MINUTES 39 SECONDS, A RADIUS OF 1,423.27 FEET AND A CHORD THAT BEARS SOUTH 44 DEGREES 53 MINUTES 33 SECONDS EAST, A CHORD LENGTH
OF 320.86 FEET;

THENCE ALONG SAID CURVE
TO THE LEFT, AN ARC LENGTH OF 321.54 FEET TO A 1/2 INCH IRON ROD FOUND WITH CAP FOR CORNER, SAID CORNER BEING THE SOUTH CORNER
OF SAID LOT 1A AND LYING IN SAID NORTHWEST RIGHT-OF-WAY LINE OF INTERNATIONAL PLAZA (100 FOOT RIGHT-OF-WAY);

    	 	Exhibit A-2	 

    	 

    

 

THENCE SOUTH 36 DEGREES
43 MINUTES 00 SECONDS WEST, ALONG SAID NORTHWEST RIGHT-OF-WAY LINE OF INTERNATIONAL PLAZA, A DISTANCE OF 10.00 FEET TO A 1/2 INCH
IRON ROD FOUND WITH CAP FOR CORNER AT THE BEGINNING OF A CURVE TO THE LEFT HAVING A DELTA ANGLE OF 11 DEGREES 24 MINUTES 51 SECONDS,
A RADIUS OF 804.74 FEET, AND A CHORD THAT BEARS SOUTH 30 DEGREES 50 MINUTES 20 SECONDS WEST, A CHORD LENGTH OF 160.05 FEET;

THENCE ALONG SAID CURVE
TO THE LEFT, AN ARC LENGTH OF 160.31 FEET TO A SET 5/8 INCH CAPPED IRON ROD STAMPED “SOUTH TEXAS SURVEYING”;

THENCE SOUTH 25 DEGREES
22 MINUTES 00 SECONDS WEST, ALONG SAID NORTHWEST RIGHT-OF-WAY LINE OF INTERNATIONAL PLAZA, A DISTANCE OF 110.30 FEET TO THE POINT
OF BEGINNING AND CONTAINING 94,958 SQUARE FEET OR 2.1799 ACRES OF LAND, MORE OR LESS.

TRACT 2:

EASEMENT ESTATE AS
CREATED AND DEFINED IN DEVELOPMENT RESTRICTIONS AND EASEMENT AGREEMENT EXECUTED BY AND BETWEEN CMD REALTY INVESTMENTS FUND II,
L.P., AN ILLINOIS LIMITED PARTNERSHIP AND RFS PARTNERSHIP, L.P., A TENNESSEE LIMITED PARTNERSHIP, DATED OCTOBER 15, 1997, FILED
OCTOBER 15, 1997, RECORDED IN/UNDER VOLUME 12944, PAGE 123 OF THE REAL PROPERTY RECORDS OF TARRANT COUNTY, TEXAS.

	Common Address: 	4200 International Plaza, Fort Worth, Texas
	Tax Parcel No.:	07060130

    	 	Exhibit A-3	 

    	 

    

 

EXHIBIT B

ENVIRONMENTAL REPORTS

1.       

Phase I Environmental Site Assessment
dated July 31, 2014 prepared by EBI Consulting as EBI Project No. 11144661 for the property commonly known as 1 Polito Avenue,
Lyndhurst, New Jersey.

2.       

Phase I Environmental Site Assessment
dated September 1, 2015 prepared by EBI Consulting as EBI Project No. 1115006153 for the property commonly known as 4200 International
Plaza, Fort Worth, Texas.

 

    	 	Exhibit BMoody National REIT II, Inc. 8-K

 

Exhibit 10.4

 

THIRD AMENDED AND RESTATED LIMITED
PARTNERSHIP AGREEMENT

OF

MOODY NATIONAL OPERATING PARTNERSHIP
II, LP

A DELAWARE LIMITED PARTNERSHIP

September 27, 2017

    	 

    	 

    

 

TABLE OF CONTENTS

Page

	ARTICLE 1	DEFINED TERMS	2
	 	 	 
	ARTICLE 2	PARTNERSHIP FORMATION AND IDENTIFICATION	11
	 	 	 
	2.1	Formation.	11
	2.2	Name, Office and Registered Agent.	11
	2.3	Term and Dissolution.	11
	2.4	Filing of Certificate and Perfection of Limited Partnership.	11
	 	 	 
	ARTICLE 3	BUSINESS OF THE PARTNERSHIP	12
	 	 	 
	ARTICLE 4	CAPITAL CONTRIBUTIONS AND ACCOUNTS	12
	 	 	 
	4.1	Capital Contributions.	12
	4.2	Class A Units, Class D Units, Class I Units and Class T Units.	12
	4.3	Additional Capital Contributions and Issuances of Additional Partnership Units.	12
	4.4	Additional Funding.	14
	4.5	Capital Accounts.	14
	4.6	No Interest on Contributions	15
	4.7	Return of Capital Contributions	15
	4.8	No Third-Party Beneficiary.	15
	4.9	Redemption of REIT Shares.	15
	4.10	Exchanges.	15
	 	 	 
	ARTICLE 5	PROFITS AND LOSSES; DISTRIBUTIONS	15
	 	 	 
	5.1	Allocation of Profit and Loss.	15
	5.2	Distribution of Cash.	18
	5.3	REIT Distribution Requirements.	19
	5.4	No Right to Distributions in Kind.	19
	5.5	Limitations on Return of Capital Contributions.	19
	5.6	Distributions upon Liquidation.	19
	5.7	Substantial Economic Effect.	20
	 	 	 
	ARTICLE 6	RIGHTS, OBLIGATIONS AND POWERS OF THE GENERAL PARTNER	20
	 	 	 
	6.1	Management of the Partnership.	20
	6.2	Delegation of Authority.	22
	6.3	Indemnification and Exculpation of Indemnitees.	22
	6.4	Liability of the General Partner.	23
	6.5	Reimbursement of General Partner.	24
	6.6	Outside Activities.	24
	6.7	Employment or Retention of Affiliates.	24
	6.8	Title to Partnership Assets.	25
	 	 	 
	ARTICLE 7	CHANGES IN GENERAL PARTNER	25
	 	 	 
	7.1	Transfer of the General Partner’s Partnership Units.	25
	7.2	Admission of a Substitute or Additional General Partner.	27
	7.3	Effect of Bankruptcy, Withdrawal, Death or Dissolution of a General Partner.	27
	7.4	Removal of a General Partner.	27

 

    	i 

    	 

    

 

	 	 	 
	ARTICLE 8	RIGHTS AND OBLIGATIONS OF THE LIMITED PARTNERS	28
	 	 	 
	8.1	Management of the Partnership.	28
	8.2	Power of Attorney.	28
	8.3	Limitation on Liability of Limited Partners.	28
	8.4	Redemption of Special Limited Partnership Interests.	29
	8.5	Redemption Right.	30
	 	 	 
	ARTICLE 9	TRANSFERS OF LIMITED PARTNERSHIP INTERESTS AND SPECIAL LIMITED PARTNERSHIP INTERESTS	31
	 	 	 
	9.1	Restrictions on Transfer of Limited Partnership Interests.	31
	9.2	Admission of Substitute Limited Partner.	32
	9.3	Rights of Assignees of Partnership Units.	32
	9.4	Effect of Bankruptcy, Death, Incompetence or Termination of a Limited Partner.	33
	9.5	Purchase for Investment.	33
	 	 	 
	ARTICLE 10	BOOKS AND RECORDS; ACCOUNTING; TAX MATTERS	33
	 	 	 
	10.1	Books and Records.	33
	10.2	Custody of Partnership Funds; Bank Accounts.	33
	10.3	Fiscal and Taxable Year.	34
	10.4	Annual Tax Information and Report.	34
	10.5	Tax Matters Partner; Partnership Representative; Tax Elections; Special Basis Adjustments.	34
	 	 	 
	ARTICLE 11	ARTICLE 11 AMENDMENT OF AGREEMENT	34
	 	 	 
	ARTICLE 12	ARTICLE 12 GENERAL PROVISIONS	35
	 	 	 
	12.1	Notices.	35
	12.2	Survival of Rights.	35
	12.3	Additional Documents.	35
	12.4	Severability.	35
	12.5	Entire Agreement.	35
	12.6	Pronouns and Plurals.	35
	12.7	Headings.	36
	12.8	Counterparts.	36
	12.9	Governing Law.	36

 

EXHIBIT A: CONTRIBUTIONS & INTERESTS

EXHIBIT B: NOTICE OF EXERCISE OF REDEMPTION
RIGHT

    	ii 

    	 

    

 

THIRD AMENDED AND RESTATED LIMITED
PARTNERSHIP AGREEMENT

OF

MOODY NATIONAL OPERATING PARTNERSHIP
II, LP

This Third Amended
and Restated Limited Partnership Agreement (this “Agreement”) is entered into this 27th day of September,
2017, between Moody National REIT II, Inc., a Maryland corporation, as the General Partner, and the Limited Partners set forth
on Exhibit A attached hereto. Capitalized terms used herein but not otherwise defined shall have the meanings given to them
in Article 1.

AGREEMENT

WHEREAS, the General
Partner intends to qualify as a real estate investment trust under the Internal Revenue Code of 1986, as amended for the taxable
year ended December 31, 2016;

WHEREAS, Moody National
Operating Partnership II, LP (the “Moody II OP”) was formed on July 29, 2014 as a limited partnership under
the laws of the State of Delaware, pursuant to a Certificate of Limited Partnership filed with the Office of the Secretary of State
of the State of Delaware on July 29, 2014;

WHEREAS, Moody National
Operating Partnership I, LP (the “Moody I OP”) was formed on January 18, 2008 as a limited partnership under
the laws of the State of Delaware, pursuant to a Certificate of Limited Partnership filed with the Office of the Secretary of State
of the State of Delaware;

WHEREAS, the General
Partner, Moody II OP, Moody Merger Sub, LLC (“Merger Sub”), a wholly-owned subsidiary of the General Partner,
Moody National Advisor II, LLC, Moody National REIT I, Inc. (the “REIT I”), Moody I OP and Moody National Advisor
I, LLC are parties to that certain Agreement and Plan of Merger, dated as of November 16, 2016, as the same may be amended from
time to time (the “Merger Agreement”);

WHEREAS, pursuant
to the Merger Agreement, at the REIT Merger Effective Time (as defined in the Merger Agreement), the REIT I will merge with and
into Merger Sub, whereupon the separate existence of REIT I will cease (such transaction, the “REIT Merger”),
with Merger Sub surviving the REIT Merger as a wholly owned subsidiary of the General Partner;

WHEREAS, pursuant
to the Merger Agreement, at the Partnership Merger Effective Time (as defined in the Merger Agreement), Moody I OP will merge with
and into Moody II OP (such transaction, the “Partnership Merger”) with Moody II OP surviving the Partnership
Merger as the “Partnership”;

WHEREAS, pursuant
to the Merger Agreement, at the Partnership Merger Effective Time, this Agreement will become the limited partnership agreement
of the Partnership;

WHEREAS, pursuant
to the terms of the Merger Agreement, at the Partnership Merger Effective Time:

Each unit of
limited partnership interest in the Moody I OP outstanding immediately prior to the Partnership Merger Effective Time will be automatically
cancelled and retired and converted into the right to receive, upon proper surrender, a number of Class A Units units of limited
partnership interest in the Partnership equal to an exchange ratio of 0.41 (the “Exchange Ratio”);

Each unit of
special limited partnership interest in the Moody I OP outstanding immediately prior to the Partnership Merger Effective time will
be automatically cancelled and retired and will cease to exist;

Each unit of
limited partnership interest in Moody II OP outstanding immediately prior to the Partnership Merger Effective Time will remain
outstanding as one unit of limited partnership interest in the Partnership;

    	 	1	 

    	 

    

 

Each special
unit of limited partnership interest in Moody II OP outstanding immediately prior to the Partnership Merger Effective Time will
remain outstanding as one unit of special limited partnership interest in the Partnership;

WHEREAS, in anticipation
of the Partnership Merger, the General Partner wishes to amend and restate the second amended and restated limited partnership
agreement of Moody II OP, dated as of June 12, 2017, as the limited partnership agreement of the Partnership;

WHEREAS,
following the Partnership Merger, the General Partner undertakes to update Exhibit A as needed to reflect the interests of the General Partner and the Limited Partners; and

WHEREAS, the parties
hereto wish to enter into this Agreement in light of the foregoing and in light of the General Partner’s desire to conduct
its current and future business through the Partnership;

NOW, THEREFORE, in
consideration of the foregoing, of mutual covenants between the parties hereto, and of other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

Article
1

DEFINED TERMS

The following defined
terms used in this Agreement shall have the meanings specified below:

“Act”
means the Delaware Revised Uniform Limited Partnership Act, as it may be amended from time to time.

“Additional
Funds” has the meaning set forth in Section 4.4.

“Adjusted
Capital Account” means, with respect any Partner, the Capital Account of such Partner as of the end of each Partnership
taxable year or other allocation period (i) increased by any amounts which such Partner is obligated to restore pursuant to any
provision of this Agreement or is deemed to be obligated to restore pursuant to Regulations Section 1.704-1(b)(2)(ii)(c) and the
penultimate sentences of Regulations Sections 1.704-2(g)(1) and 1.704-2(g)(5) and (ii) decreased by the items described in Regulations
Sections 1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5) and 1.704-1(b)(2)(ii)(d)(6). The foregoing definition of Adjusted Capital
Account is intended to comply with the provisions of Regulations Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently
therewith.

“Adjusted
Capital Account Deficit” means, with respect to any Partner, the deficit balance, if any, in such Partner’s Adjusted
Capital Account as of the end of the relevant Partnership taxable year or other allocation period.

“Administrative
Expenses” means (i) all administrative and operating costs and expenses incurred by the Partnership, (ii) those administrative
costs and expenses of the General Partner, including any salaries or other payments to directors, officers or employees of the
General Partner, and any accounting and legal expenses of the General Partner, which expenses, the Partners have agreed, are expenses
of the Partnership and not the General Partner, and (iii) to the extent not included in clause (ii) above, REIT Expenses; provided,
however, that Administrative Expenses shall not include any administrative costs and expenses incurred by the General Partner that
are attributable to a Property or partnership interests in a Subsidiary Partnership that are owned by the General Partner directly.

“Advisor”
or “Advisors” means the Person or Persons, if any, appointed, employed or contracted by the General Partner
and responsible for directing or performing the day-to-day business affairs of the General Partner, including any Person to whom
such Advisor subcontracts substantially all of such functions.

“Advisory
Agreement” means the agreement between the General Partner, the Advisor and the Partnership pursuant to which the Advisor
will direct or perform the day-to-day business affairs of the General Partner.

    	 	2	 

    	 

    

 

“Affiliate”
means, with respect to any Person, (i) any Person directly or indirectly, owning, controlling or holding with the power to vote
10% or more of the outstanding voting securities of such other Person; (ii) any Person 10% or more of whose outstanding voting
securities are directly or indirectly owned, controlled or held, with the power to vote, by such other Person; (iii) any Person
directly or indirectly controlling, controlled by or under common control with such other Person; (iv) any executive officer, director,
trustee or general partner of such other Person; and (v) any legal entity for which such Person acts as an executive officer, director,
trustee or general partner.

“Aggregate
Share Ownership Limit” has the meaning provided in the Articles of Incorporation.

“Agreement”
means this Third Amended and Restated Limited Partnership Agreement, as amended, modified supplemented or restated from time to
time, as the context requires.

“Applicable
Percentage” has the meaning provided in Section 8.5(b) hereof.

“Articles
of Incorporation” means the Articles of Incorporation of the General Partner, as amended or restated from time to time,
as filed with the Maryland State Department of Assessments and Taxation.

“Capital
Account” has the meaning provided in Section 4.5 hereof.

“Capital
Contribution” means, with respect to any Partner, any cash, cash equivalents or the fair market value of other property
which such Partner contributes or is deemed to contribute to the Partnership pursuant to Section 4.1 or 4.3 hereof. Any reference
to the Capital Contribution of a Partner shall include the Capital Contribution made by a predecessor holder of the Partnership
Interests of such Partner.

“Carrying
Value” means, with respect to any asset, the asset’s adjusted basis for federal income tax purposes, except as
follows:

(i)       

The initial Carrying
Value of any asset contributed to the Partnership shall be the gross fair market value of such asset, as agreed by the Contributing
Partner and the General Partner.

(ii)       

The Carrying Values
of all Partnership assets shall be adjusted to equal their respective gross fair market values, as determined by the General Partner
using such reasonable method of valuation as it may adopt immediately prior to the following events:

(a)       

the acquisition of
an additional interest in the Partnership by any new or existing Partner in exchange for more than a de minimis Capital Contribution
or the provision of services to or for the benefit of the Partnership, if the General Partner reasonably determines that such adjustment
is necessary or appropriate to reflect the relative economic interests of the Partners in the Partnership;

(b)       

the distribution
by the Partnership to a Partner of more than a de minimis amount of property as consideration for an interest in the Partnership,
if the General Partner reasonably determines that such adjustment is necessary or appropriate to reflect the relative economic
interests of the Partners in the Partnership;

(c)       

the liquidation of
the Partnership within the meaning of Regulations Section 1.704- 1(b)(2)(ii)(g);

(d)       

the grant of an interest
in the Partnership (other than a de minimis interest) as consideration for the provision of services to or for the benefit of the
Partnership by an existing Partner acting in a partner capacity, or by a new Partner acting in a partner capacity or in anticipation
of becoming a Partner of the Partnership, if the General Partner reasonably determines that such adjustment is necessary or appropriate
to reflect the relative economic interests of the Partners in the Partnership; and

    	 	3	 

    	 

    

 

(e)       

at such other times
as the General Partner shall reasonably deem necessary or advisable if permitted by, or required to comply with, Regulations Sections
1.704-1(b) and 1.704-2.

(iii)       

The Carrying Value
of a Partnership asset distributed to a Partner shall be the gross fair market value of such asset on the date of distribution,
as agreed by the distributee and the General Partner.

(iv)       

The Carrying Values
of Partnership assets shall be adjusted to reflect any adjustments to the adjusted basis of such assets pursuant to Code Section
734(b) or 743(b), but only to the extent that such adjustments are taken into account in determining Capital Accounts pursuant
to Regulations Section 1.704-1(b)(2)(iv)(m); provided, however, that Carrying Values shall not be adjusted pursuant to this clause
(iv) to the extent that the General Partner reasonably determines that an adjustment pursuant to clause (ii) above is necessary
or appropriate in connection with a transaction that would otherwise result in an adjustment pursuant to this clause (iv).

(v)       

If the Carrying Values
of a Partnership asset has been determined or adjusted pursuant to clause (i), (ii), or (iv) above, such Carrying Values shall
thereafter be adjusted by Depreciation.

“Cash Amount”
means an amount of cash equal to the lesser of (i) the Value of the REIT Shares Amount on the date of receipt by the General Partner
of a Notice of Redemption or (ii) the applicable Redemption Price determined by the General Partner.

“Certificate”
means any instrument or document that is required under the laws of the State of Delaware, or any other jurisdiction in which the
Partnership conducts business, to be signed and sworn to by the Partners of the Partnership (either by themselves or pursuant to
the power-of-attorney granted to the General Partner in Section 8.2 hereof) and filed for recording in the appropriate public offices
within the State of Delaware or such other jurisdiction to perfect or maintain the Partnership as a limited partnership, to effect
the admission, withdrawal, or substitution of any Partner of the Partnership, or to protect the limited liability of the Limited
Partners as limited partners under the laws of the State of Delaware or such other jurisdiction.

“Class”
means a class of REIT Shares or Partnership Units, as the context may require.

“Class A
REIT Shares” means the REIT Shares referred to as “Class A Common Stock” in the Articles of Incorporation.

“Class A
Unit” means a Partnership Unit entitling the holder thereof to the rights of a holder of a Class A Unit as provided in
this Agreement.

“Class D
REIT Shares” means the REIT Shares referred to as “Class D Common Stock” in the Articles of Incorporation.

“Class D
Unit” means a Partnership Unit entitling the holder thereof to the rights of a holder of a Class D Unit as provided in
this Agreement.

“Class I
REIT Shares” means the REIT Shares referred to as “Class I Common Stock” in the Articles of Incorporation.

“Class I
Unit” means a Partnership Unit entitling the holder thereof to the rights of a holder of a Class I Unit as provided in
this Agreement.

“Class T
REIT Shares” means the REIT Shares referred to as “Class T Common Stock” in the Articles of Incorporation.

“Class T
Unit” means a Partnership Unit entitling the holder thereof to the rights of a holder of a Class T Unit as provided in
this Agreement.

    	 	4	 

    	 

    

 

“Code”
means the Internal Revenue Code of 1986, as amended, and as hereafter amended from time to time. Reference to any particular provision
of the Code shall mean that provision in the Code at the date hereof and any successor provision of the Code.

“Commission”
means the U.S. Securities and Exchange Commission.

“Common
Share Ownership Limit” has the meaning provided in the Articles of Incorporation.

“Common
Unit” means a fractional, undivided share of the Partnership Interests of all Partners issued pursuant to Article 4 hereof,
but does not include, unless otherwise provided herein for specific purposes, any Preferred Unit, Special Limited Partnership Unit,
or any other Partnership Unit specified in a Partnership Unit Designation as being other than a Common Unit; provided, however,
that the General Partner Interest and the Limited Partner Interests shall have the differences in rights and privileges as specified
in this Agreement.

“Defaulting
Limited Partner” has the meaning provided in Section 5.2(c) of this Agreement.

“Depreciation”
means, for each fiscal year, an amount equal to the federal income tax depreciation, amortization, or other cost recovery deduction
allowable with respect to an asset for such year, except that if the Carrying Value of an asset differs from its adjusted basis
for federal income tax purposes at the beginning of such year or other period, Depreciation shall be an amount which bears the
same ratio to such beginning Carrying Value as the federal income tax depreciation, amortization, or other cost recovery deduction
for such year bears to such beginning adjusted tax basis; provided, however, that if the federal income tax depreciation, amortization,
or other cost recovery deduction for such year is zero, Depreciation shall be determined with reference to such beginning Carrying
Value using any reasonable method selected by the General Partner.

“Director”
means a member of the board of directors of the General Partner.

“Event of
Bankruptcy” means, as to any Person, the filing of a petition for relief as to such Person as debtor or bankrupt under
the Bankruptcy Code of 1978 or similar provision of law of any jurisdiction (except if such petition is contested by such Person
and has been dismissed within 90 days); insolvency or bankruptcy of such Person as finally determined by a court proceeding; filing
by such Person of a petition or application to accomplish the same or for the appointment of a receiver or a trustee for such Person
or a substantial part of his assets; commencement of any proceedings relating to such Person as a debtor under any other reorganization,
arrangement, insolvency, adjustment of debt or liquidation law of any jurisdiction, whether now in existence or hereinafter in
effect, either by such Person or by another, provided that if such proceeding is commenced by another, such Person indicates his
approval of such proceeding, consents thereto or acquiesces therein, or such proceeding is contested by such Person and has not
been finally dismissed within 90 days.

“Excepted
Holder Limit” has the meaning provided in the Articles of Incorporation.

“General
Partner” means Moody National REIT II, Inc. and any Person who becomes a substitute or additional General Partner as
provided herein, and any of their successors as General Partner, until such Person ceases to be a General Partner pursuant to the
terms of this Agreement.

“General
Partnership Interest” means a Partnership Interest held by the General Partner that is a general partnership interest.

“General
Partner Loan” has the meaning provided in Section 5.2(c) of this Agreement.

“Indemnitee”
means (i) any Person made a party to a proceeding by reason of its status as the General Partner or a director, officer or employee
of the General Partner or the Partnership, and (ii) such other Persons (including Affiliates of the General Partner or the Partnership)
as the General Partner may designate from time to time, in its sole and absolute discretion.

    	 	5	 

    	 

    

 

“Independent
Director” means a Director who is not on the date of determination, and within the last two years from the date of determination
has not been, directly or indirectly associated with the Sponsor of the General Partner or the Advisor by virtue of (i) ownership
of an interest in the Sponsor, the Advisor or any of their Affiliates, other than the General Partner, (ii) employment by the Sponsor,
the Advisor or any of their Affiliates, (iii) service as an officer or director of the Sponsor, the Advisor or any of their Affiliates,
other than as a Director, (iv) performance of services, other than as a Director, for the General Partner, (v) service as a director
or trustee of more than three real estate investment trusts organized by the Sponsor or advised by the Advisor or (vi) maintenance
of a material business or professional relationship with the Sponsor, the Advisor or any of their Affiliates. A business or professional
relationship is considered “material” if the aggregate gross revenue derived by the Director from the Sponsor,
the Advisor and their Affiliates (excluding fees for serving as an independent director of the General Partner or other real estate
investment trust or real estate program organized or advised or managed by the Sponsor or its Affiliates) exceeds five percent
of either the Director’s annual gross revenue during either of the last two years or the Director’s net worth on a
fair market value basis. An indirect association with the Sponsor or the Advisor shall include circumstances in which a Director’s
spouse, parent, child, sibling, mother- or father-in-law, son- or daughter-in-law or brother- or sister-in-law is or has been associated
with the Sponsor, the Advisor, any of their Affiliates or the General Partner.

“Junior
Share” means a share of capital stock of the General Partner now or hereafter authorized or reclassified that has dividend
rights, or rights upon liquidation, winding up and dissolution, that are inferior or junior to the REIT Shares.

“Limited
Partner” means any Person named as a Limited Partner on Exhibit A attached hereto, as such exhibit may be amended and
restated from time to time, and any Person who becomes an additional Limited Partner or a Substitute Limited Partner, in such Person’s
capacity as a Limited Partner in the Partnership.

“Limited
Partnership Interest” means the ownership interest of a Limited Partner in the Partnership at any particular time, including
the right of such Limited Partner to any and all benefits to which such Limited Partner may be entitled as provided in this Agreement
and in the Act, together with the obligations of such Limited Partner to comply with all the provisions of this Agreement and of
such Act. A Limited Partnership Interest may be expressed as a number of Common Units, Preferred Units or other Partnership Units.

“Listing”
means the listing of the REIT Shares on a national securities exchange or the receipt by holders of the REIT Shares of securities
that are listed on a national securities exchange in exchange for REIT Shares. Upon such Listing, the shares shall be deemed “Listed.”

“New Securities”
means (i) any rights, options, warrants, or convertible or exchangeable securities having the right to subscribe for or purchase
REIT Shares or Preferred Shares, excluding Preferred Shares and Junior Shares or (ii) any debt issued by the General Partner that
provides any of the rights described in (i).

“Nonrecourse
Deduction” has the meaning set forth in Regulations Section 1.704-2(b)(1), and the amount of Nonrecourse Deductions for
a Partnership Year shall be determined in accordance with the rules of Regulations Section 1.704-2(c).

“Nonrecourse
Liability” has the meaning provided in Regulations Section 1.704(b)(3).

“Notice
of Redemption” means the Notice of Exercise of Redemption Right substantially in the form attached as Exhibit B
hereto.

“Offer”
has the meaning provided in Section 7.1(b) of this Agreement.

“Partner”
means any General Partner or Limited Partner.

    	 	6	 

    	 

    

 

“Partner
Minimum Gain” means an amount, with respect to each Partner Nonrecourse Debt, equal to the Partnership Minimum Gain that
would result if such Partner Nonrecourse Debt were treated as a Nonrecourse Liability, determined in accordance with Regulations
Section 1.704-2(i)(3).

“Partner
Nonrecourse Debt” has the meaning provided in Regulations Section 1.704-2(b)(4).

“Partner
Nonrecourse Debt Minimum Gain” means an amount, with respect to each Partner Nonrecourse Debt, equal to the Partnership
Minimum Gain that would result if such Partner Nonrecourse Debt were treated as a Nonrecourse Liability, determined in accordance
with Regulations Section 1.704-2(i)(3).

“Partner
Nonrecourse Deductions” has the meaning provided in Regulations Sections 1.704-2(i)(1) and 1.704-2(i)(2), and the amount
of Partner Nonrecourse Deductions with respect to a Partner Nonrecourse Debt for a Partnership Year shall be determined in accordance
with Regulations Sections 1.704-2(i)(2).

“Partnership”
has the meaning set forth in the recitals hereto.

“Partnership
Interest” means an ownership interest in the Partnership held by a Limited Partner, the Special Limited Partner or the
General Partner and includes any and all benefits to which the holder of such a Partnership Interest may be entitled as provided
in this Agreement, together with all obligations of such Person to comply with the terms and provisions of this Agreement. A Partnership
Interest may be expressed as a number of Common Units, Preferred Units or other Partnership Units.

“Partnership
Loan” has the meaning provided in Section 5.2(c) of this Agreement.

“Partnership
Minimum Gain” has the meaning provided in Regulations Sections 1.704-2(b)(2) and 1.704-2(d), and the amount of Partnership
Minimum Gain, as well as any net increase or decrease in Partnership Minimum Gain, for a Partnership Year shall be determined in
accordance with the rules of Regulations Section 1.704-2(d).

“Partnership
Record Date” means the record date established by the General Partner for the distribution of cash pursuant to Section
5.2 hereof.

“Partnership
Representative” has the meaning provided in Section 6223 of the Code.

“Partnership
Unit” means a Common Unit, a Preferred Unit, a Special Limited Partnership Unit or any other unit of a fractional, undivided
share of the Partnership Interests that the General Partner has authorized pursuant to Article 4 hereof; provided, however, that
Partnership Units comprising a General Partner Interest or a Limited Partner Interest shall have the differences in rights and
privileges as specified in this Agreement.

“Partnership
Year” shall mean the Partnership’s taxable year or any shorter period for which Partnership profits and losses
are allocated.

“Percentage
Interest” means, with respect to any Partner other than a Special Limited Partner at any time, the percentage determined
by dividing the Common Units of such Partner by the sum of the Common Units of all Partners (other than Special Limited Partners).

“Person”
means any individual, partnership, limited liability company, corporation, joint venture, trust or other entity.

“Preferred
Shares” means a share of capital stock of the General Partner now or hereafter authorized or reclassified that has dividend
rights, or rights upon liquidation, winding up and dissolution, that are superior or prior to REIT Shares.

    	 	7	 

    	 

    

 

“Preferred
Unit” means a fractional, undivided share of the Partnership Interests that has distribution rights, or rights upon liquidation,
winding up and dissolution, that are superior or prior to the Common Units that the General Partner has authorized pursuant to
Section 4.3 hereof.

“Profit”
and “Loss” means, for each Partnership Year or other applicable period, an amount equal to the Partnership’s
taxable income or loss for such Partnership Year, determined in accordance with Code Section 703(a) (for this purpose, all items
of income, gain, loss, or deduction required to be stated separately pursuant to Code Section 703(a)(1) shall be included in taxable
income or loss), with the following adjustments:

(i)       

Any income of the Partnership
that is exempt from federal income tax and not otherwise taken into account in computing Profit and Loss pursuant to this definition
of “Profit” and “Loss” shall be added to such taxable income or loss;

(ii)       

Any expenditures of
the Partnership described in Code Section 705(a)(2)(B) or treated as Code Section 705(a)(2)(B) expenditures pursuant to Regulations
Section 1.704-1(b)(2)(iv)(i) and not otherwise taken into account in computing Profit or Loss pursuant to this definition of “Profit”
and “Loss” shall be subtracted from such taxable income or loss;

(iii)       

In the event the Carrying
Value of any Partnership asset is adjusted pursuant to subparagraphs (ii) or (iii) of the definition of Carrying Value, the amount
of such adjustment shall be taken into account as gain or loss from the disposition of such asset for purposes of computing Profit
and Loss;

(iv)       

Gain or loss resulting
from any disposition of Partnership Property with respect to which gain or loss is recognized for federal income tax purposes shall
be computed by reference to the Carrying Value of the property disposed of, notwithstanding that the adjusted tax basis of such
property differs from its Carrying Value;

(v)       

In lieu of the depreciation,
amortization, and other cost recovery deductions taken into account in computing such taxable income or loss, there shall be taken
into account Depreciation for such Partnership Year or other period;

(vi)       

To the extent an adjustment
to the adjusted tax basis of any Partnership asset pursuant to Code Section 734(b) or Section 743(b) is required pursuant to Regulations
Section 1.704-1(b)(2)(iv) to be taken into account in determining Capital Accounts as a result of a distribution other than in
liquidation of a Partner’s interest in the Partnership, the amount of such adjustment shall be treated as an item of gain
(if the adjustment increases the basis of the asset) or loss (if the adjustment decreases the basis of the asset) from the disposition
of the asset and shall be taken into account for purposes of computing Profit or Loss; and

(vii)       

Notwithstanding any
other provision of this definition of “Profit” and “Loss”, any items that are specially allocated
pursuant to Sections 5.1(c) or 5.1(d) hereof shall not be taken into account in computing Profits or Losses. The amounts of the
items of Partnership income, gain, loss, or deduction available to be specially allocated pursuant to Sections 5.1(c) and 5.1(d)
hereof shall be determined by applying rules analogous to those set forth in subparagraphs (i) through (vi) above.

“Property”
means any Real Estate Asset or other investment in which the Partnership holds an ownership interest.

“Prospectus”
means the prospectus included in the most recent effective registration statement filed by the General Partner with the Commission
with respect to the offering of REIT Shares, as such prospectus may be amended or supplemented from time to time.

“Real Estate
Asset” means unimproved and improved real property, real estate related assets and any direct or indirect interest therein,
including, without limitation, fee or leasehold interests, options, leases, partnership and joint venture interests, equity and
debt securities of entities that own real estate, loans secured by real property including first or second mortgage loans, mezzanine
loans and participations in such loans, preferred equity interests secured by a property owner’s interest in real property
and other contractual rights in real estate.

    	 	8	 

    	 

    

 

“Redemption
Price” means the Value of the REIT Shares Amount on the date of receipt by the General Partner of a Notice of Redemption
multiplied by any discount determined by the General Partner, including, but not limited to, any discount based upon the combined
number of years that the applicable Partner has held the Partnership Units offered for redemption.

“Redemption
Right” has the meaning provided in Section 8.5(a) of this Agreement.

“Regulations”
means the Federal income tax regulations promulgated under the Code, as amended and as hereafter amended from time to time. Reference
to any particular provision of the Regulations shall mean that provision of the Regulations on the date hereof and any successor
provision of the Regulations.

“REIT”
means a real estate investment trust under Sections 856 through 860 of the Code.

“REIT Expenses”
means (i) costs and expenses relating to the formation and continuity of existence and operation of the General Partner and any
Subsidiaries thereof (which Subsidiaries shall, for purposes hereof, be included within the definition of General Partner), including
taxes, fees and assessments associated therewith, any and all costs, expenses or fees payable to any director, officer, or employee
of the General Partner, (ii) costs and expenses relating to any public offering and registration of securities by the General Partner
and all statements, reports, fees and expenses incidental thereto, including, without limitation, underwriting discounts and selling
commissions applicable to any such offering of securities, and any costs and expenses associated with any claims made by any holders
of such securities or any underwriters or placement agents thereof, (iii) costs and expenses associated with any repurchase of
any securities by the General Partner, (iv) costs and expenses associated with the preparation and filing of any periodic or other
reports and communications by the General Partner under federal, state or local laws or regulations, including filings with the
Commission, (v) costs and expenses associated with compliance by the General Partner with laws, rules and regulations promulgated
by any regulatory body, including the Commission and any securities exchange, (vi) costs and expenses associated with any 401(k)
plan, incentive plan, bonus plan or other plan providing for compensation for the employees of the General Partner, (vii) costs
and expenses incurred by the General Partner relating to any issuing or redemption of Partnership Interests, and (viii) all other
operating or administrative costs of the General Partner incurred in the ordinary course of its business on behalf of or in connection
with the Partnership.

“REIT Share”
means a share of common stock in the General Partner (or successor entity, as the case may be), including Class A REIT Shares,
Class D REIT Shares, Class I REIT Shares, and Class T REIT Shares.

“REIT Shares
Amount” means a number of REIT Shares having the same Class designation as the class of Partnership Units offered for
exchange by a Tendering Party equal to the number of Partnership Units offered for exchange by a Tendering Party; provided that
in the event the General Partner issues to all holders of REIT Shares rights, options, warrants or convertible or exchangeable
securities entitling the stockholders to subscribe for or purchase REIT Shares, or any other securities or property (collectively,
the “rights”), and the rights have not expired at the Specified Redemption Date, then the REIT Shares Amount
shall also include the rights issuable to a holder of the REIT Shares Amount of REIT Shares on the record date fixed for purposes
of determining the holders of REIT Shares entitled to rights.

“Related
Party” means, with respect to any Person, any other Person whose ownership of shares of the General Partner’s capital
stock would be attributed to the first such Person under Code Section 544 (as modified by Code Section 856(h)(1)(B)).

“Restriction
Notice” has the meaning provided in Section 8.5(e) of this Agreement.

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

    	 	9	 

    	 

    

 

“Special
Limited Partner” means the holder of a Special Limited Partnership Unit.

“Special
Limited Partnership Unit” means Partnership Units designated as Special Limited Partnership Units issued pursuant to
Section 4.3(e) with the rights and obligations provided under this Agreement.

“Specified
Redemption Date” means the first business day of the month that is at least sixty (60) business days after the receipt
by the General Partner of the Notice of Redemption.

“Sponsor”
means any Person which (a) is directly or indirectly instrumental in organizing, wholly or in part, the General Partner, (b) will
control, manage or participate in the management of the General Partner, and any Affiliate of any such Person, (c) takes the initiative,
directly or indirectly, in founding or organizing the General Partner, either alone or in conjunction with one or more other Persons,
(d) receives a material participation in the General Partner in connection with the founding or organizing of the business of the
General Partner, in consideration of services or property, or both services and property, (e) has a substantial number of relationships
and contacts with the General Partner, (f) possesses significant rights to control Properties, (g) receives fees for providing
services to the General Partner which are paid on a basis that is not customary in the industry or (h) provides goods or services
to the General Partner on a basis which was not negotiated at arm’s-length with the General Partner. “Sponsor”
does not include any Person whose only relationship with the General Partner is that of an independent property manager and whose
only compensation is as such, or wholly independent third parties such as attorney, accountants and underwriters whose only compensation
is for professional services.

“Subsidiary”
means, with respect to any Person, any corporation or other entity of which a majority of (i) the voting power of the voting equity
securities or (ii) the outstanding equity interests is owned, directly or indirectly, by such Person.

“Subsidiary
Partnership” means any partnership of which the partnership interests therein are owned by the General Partner or a direct
or indirect subsidiary of the General Partner.

“Substitute
Limited Partner” means any Person admitted to the Partnership as a Limited Partner pursuant to Section 9.2 hereof.

“Successor
Entity” has the meaning provided in Section 4.3(b).

“Survivor”
has the meaning provided in Section 7.1(d).

“Tax Matters
Partner” has the meaning provided in Section 6231(a)(7) of the Code.

“Tendered
Units” has the meaning provided in Section 8.5(a) of this Agreement.

“Tendering
Party” has the meaning provided in Section 8.5(a) of this Agreement.

“Termination
Event” means the termination or nonrenewal of the Advisory Agreement (i) in connection with a merger, sale of assets
or transaction involving the General Partner pursuant to which a majority of the Directors then in office are replaced or removed,
(ii) by the Advisor for “good reason” (as defined in the Advisory Agreement) or (iii) by the General Partner
other than for “cause” (as defined in the Advisory Agreement).

“Transfer”
has the meaning provided in Section 9.2(a) hereof.

“Value”
means the fair market value per share of REIT Shares which will equal: (i) if REIT Shares are Listed, the average closing price
per share for the previous thirty (30) business days, (ii) if REIT Shares are not Listed, the most recent offering price per share
or share equivalent of REIT Shares, until December 31st of the year following the year in which the most recently completed offering
of REIT Shares has expired, and (iii) thereafter, such price per REIT Share as the management of the General Partner determines
in good faith.

    	 	10	 

    	 

    

 

Article
2 

PARTNERSHIP FORMATION AND IDENTIFICATION

2.1       

Formation.

The Partnership was
formed as a limited partnership pursuant to the Act, and all other pertinent laws of the State of Delaware, for the purposes and
upon the terms and conditions set forth in this Agreement.

2.2       

Name, Office
and Registered Agent.

The name of the Partnership
is Moody National Operating Partnership II, LP. The specified office and place of business of the Partnership shall be 6363 Woodway
Drive, Suite 110, Houston, Texas 77057. The General Partner may at any time change the location of such office, provided the General
Partner gives notice to the Partners of any such change. The name and address of the Partnership’s registered agent is Corporation
Service Company, 2711 Centerville Road, Suite 400, Wilmington, New Castle County, Delaware 19801. The sole duty of the registered
agent as such is to forward to the Partnership any notice that is served on him as registered agent.

2.3       

Term and Dissolution.

(a)       

The term of the Partnership
shall continue in full force and effect until dissolved upon the first to occur of any of the following events:

(i)       

the occurrence of an
Event of Bankruptcy as to a General Partner or the dissolution, death, removal or withdrawal of a General Partner unless the business
of the Partnership is continued pursuant to Section 7.3(b) hereof; provided that if a General Partner is on the date of such occurrence
a partnership, the dissolution of such General Partner as a result of the dissolution, death, withdrawal, removal or Event of Bankruptcy
of a partner in such partnership shall not be an event of dissolution of the Partnership if the business of such General Partner
is continued by the remaining partner or partners, either alone or with additional partners, and such General Partner and such
partners comply with any other applicable requirements of this Agreement;

(ii)       

the passage of 90 days
after the sale or other disposition of all or substantially all of the assets of the Partnership (provided that if the Partnership
receives an installment obligation as consideration for such sale or other disposition, the Partnership shall continue, unless
sooner dissolved under the provisions of this Agreement, until such time as such note or notes are paid in full); or

(iii)       

the election by the
General Partner that the Partnership should be dissolved.

(b)       

Upon dissolution
of the Partnership (unless the business of the Partnership is continued pursuant to Section 7.3(b) hereof), the General Partner
(or its trustee, receiver, successor or legal representative) shall amend or cancel any Certificate(s) and liquidate the Partnership’s
assets and apply and distribute the proceeds thereof in accordance with Section 5.6 hereof. Notwithstanding the foregoing, the
liquidating General Partner may either (i) defer liquidation of, or withhold from distribution for a reasonable time, any assets
of the Partnership (including those necessary to satisfy the Partnership’s debts and obligations), or (ii) distribute the
assets to the Partners in kind.

2.4       

Filing of
Certificate and Perfection of Limited Partnership.

The General Partner
shall execute, acknowledge, record and file at the expense of the Partnership, any and all amendments to the Certificate(s) and
all requisite fictitious name statements and notices in such places and jurisdictions as may be necessary to cause the Partnership
to be treated as a limited partnership under, and otherwise to comply with, the laws of each state or other jurisdiction in which
the Partnership conducts business.

    	 	11	 

    	 

    

 

Article
3 

BUSINESS OF THE PARTNERSHIP

The purpose and nature
of the business to be conducted by the Partnership is (i) to conduct any business that may be lawfully conducted by a limited partnership
organized pursuant to the Act, provided, however, that such business shall be limited to and conducted in such a manner as to permit
the General Partner at all times to qualify as a REIT, unless the General Partner determines that it no longer intends to qualify
as a REIT, and in a manner such that the General Partner will not be subject to any taxes under Section 857 or 4981 of the Code,
(ii) to enter into any partnership, joint venture or other similar arrangement to engage in any of the foregoing or the ownership
of interests in any entity engaged in any of the foregoing and (iii) to do anything necessary or incidental to the foregoing. In
connection with the foregoing, and without limiting the General Partner’s right in its sole and absolute discretion to qualify
or cease qualifying as a REIT, the Partners acknowledge that the General Partner intends to qualify as a REIT for federal income
tax purposes and that such qualification and the avoidance of income and excise taxes on the General Partner inures to the benefit
of all the Partners and not solely to the General Partner. Notwithstanding the foregoing, the Limited Partners agree that the General
Partner may terminate its status as a REIT under the Code at any time to the full extent permitted under the Articles of Incorporation.
The General Partner on behalf of the Partnership shall also be empowered to do any and all acts and things necessary or prudent
to ensure that the Partnership will not be classified as a “publicly traded partnership” under Section 7704
of the Code.

Article
4 

CAPITAL CONTRIBUTIONS AND ACCOUNTS

4.1       

Capital Contributions.

The Capital Contributions
and Partnership Units of each Partner are set forth on Exhibit A, as the same shall be amended from time to time by the General
Partner to the extent necessary to reflect accurately sales, exchanges or other Transfers, redemptions, Capital Contributions,
the issuance of additional Partnership Units, or similar events having an effect on a Partner’s ownership of Partnership
Units.

4.2       

Class A Units,
Class D Units, Class I Units and Class T Units.

The General Partner
is hereby authorized to cause the Partnership to issue Partnership Units designated as Class A Units, Class D Units, Class I Units
and Class T Units. Each such Class shall have the rights and obligations attributed to that Class under this Agreement. All Common
Units outstanding on the date hereof are re-designated as Class A Units.

4.3       

Additional
Capital Contributions and Issuances of Additional Partnership Units.

Except as provided
in this Section 4.3 or in Section 4.4, the Partners shall have no right or obligation to make any additional Capital Contributions
or loans to the Partnership.

(a)       

The General Partner
is hereby authorized to cause the Partnership to issue additional Partnership Units for any Partnership purpose at any time or
from time to time, including but not limited to Partnership Units issued in connection with acquisitions of properties, to the
Partners (including the General Partner) or to other Persons for such consideration and on such terms and conditions as shall be
established by the General Partner in its sole and absolute discretion, all without the approval of any Limited Partner. Any additional
Partnership Units issued thereby may be issued in one or more classes (including the Classes specified in this Agreement or any
other Classes), or one or more series of any of such classes, with such designations, preferences and relative, participating,
optional or other special rights, powers and duties, all as shall be determined by the General Partner in its sole and absolute
discretion and without the approval of any Limited Partner, subject to Delaware law, including, without limitation, (i) the allocations
of items of Partnership income, gain, loss, deduction and credit to each such class or series of Partnership Units; (ii) the right
of each such class or series of Partnership Units to share in Partnership distributions; and (iii) the rights of each such class
or series of Partnership Units upon dissolution and liquidation of the Partnership. Without limiting the foregoing, the General
Partner is expressly authorized to cause the Partnership to issue Partnership Units for less than fair market value, so long as
the General Partner concludes in good faith that such issuance is in the best interests of the General Partner and the Partnership.
In the event that the Partnership issues additional Partnership Units pursuant to this Section 4.3(a), the General Partner shall
make such revisions to this Agreement as it deems necessary to reflect the issuance of such additional Partnership Units.

    	 	12	 

    	 

    

 

(b)       

In the event the
General Partner (i) declares or pays a dividend on any Class of its outstanding REIT Shares in REIT Shares or makes a distribution
to all holders of any Class of its outstanding REIT Shares in REIT Shares, (ii) subdivides any Class of its outstanding REIT shares,
or (iii) combines any Class of its outstanding REIT Shares into a smaller number of REIT Shares with respect to any Class of REIT
Shares, then a corresponding adjustment to the number of outstanding Partnership Units of the applicable Class necessary to maintain
the proportionate relationship between the number of outstanding Partnership Units of such Class to the number of outstanding REIT
Shares of such Class shall automatically be made. Additionally, in the event that any other entity shall become General Partner
pursuant to any merger, consolidation or combination of the General Partner with or into another entity (the “Successor Entity”),
the number of outstanding Partnership Units of each class shall be adjusted by multiplying such number by the number of shares
of the Successor Entity into which one REIT Share of such Class is converted pursuant to such merger, consolidation or combination,
determined as of the date of such merger, consolidation or combination. Any adjustment to the number of outstanding Partnership
Units of any Class shall become effective immediately after the effective date of such event retroactive to the record date, if
any, for such event; provided, however, that if the General Partner receives a Notice of Redemption after the record date, but
prior to the effective date of such dividend, distribution, subdivision or combination, or such merger, consolidation or combination,
the number of outstanding Partnership Units of any Class shall be determined as if the General Partner had received the Notice
of Redemption immediately prior to the record date for such dividend, distribution, subdivision or combination of such merger,
consolidation or combination. If the General Partner takes any other action affecting the REIT Shares other than actions specifically
described above and, in the opinion of the General Partner such action would require an adjustment to the number of Partnership
Units to maintain the proportionate relationship between the number of outstanding Partnership Units to the number of outstanding
REIT Shares, the General Partner shall have the right to make such adjustment to the number of Partnership Units, to the extent
permitted by law, in such manner and at such time as the General Partner, in its sole discretion, may determine to be appropriate
under the circumstances.

(c)       

No additional Partnership
Units shall be issued to the General Partner unless (i) the additional Partnership Units are issued to all Partners in proportion
to their respective Percentage Interests with respect to the class of Partnership Units so issued; (ii) (a) the additional Partnership
Units are issued in connection with (x) an issuance of REIT Shares, or (y) an issuance of Preferred Shares, New Securities or other
interests in the General Partner (other than REIT Shares), which Preferred Shares, New Securities or other interests have designations,
preferences and other rights, terms and provisions that are substantially the same as the designations, preferences and other rights,
terms and provisions of the additional Partnership Units issued to the General Partner, and (b) the General Partner contributes
to the Partnership the cash proceeds or other consideration received in connection with the issuance of such REIT Shares, Preferred
Shares, New Securities or other interests in the General Partner; or (iii) the Additional Partnership Units are issued upon the
conversion, redemption or exchange of debt, Partnership Units or other securities issued by the Partnership.

    	 	13	 

    	 

    

 

(d)       

The General Partner
shall not issue any additional REIT Shares, Preferred Shares, Junior Shares or New Securities unless the General Partner contributes
the cash proceeds or other consideration received from the issuance of such additional REIT Shares, Preferred shares, Junior Shares
or New Securities, as the case may be, and from the exercise of the rights contained in any such additional New Securities, to
the Partnership in exchange for (x) in the case of an issuance of REIT Shares, Partnership Units, or (y) in the case of an issuance
of Preferred Shares, Junior Shares or New Securities, Partnership Units with designations, preferences and other rights, terms
and provisions that are substantially the same as the designations, preferences and other rights, terms and provisions of such
Preferred Shares, Junior Shares or New Securities; provided, however, that notwithstanding the foregoing, the General Partner may
issue REIT Shares, Preferred Shares, Junior Shares or New Securities (a) pursuant to Section 8.5(b) hereof, (b) pursuant to a dividend
or distribution (including any stock split) of REIT Shares, Preferred Shares, Junior Shares, or New Securities to all of the holders
of REIT Shares, Preferred Shares, Junior Shares or New Securities, as the case may be, (c) upon a conversion, redemption or exchange
of Preferred Shares, (d) upon a conversion of Junior Shares into REIT Shares, (e) upon a conversion, redemption, exchange or exercise
of New Securities, or (f) in connection with an acquisition of a property or other asset to be owned, directly or indirectly, by
the General Partner if the General Partner determines that such acquisition is in the best interest of the Partnership. In the
event of any issuance of additional REIT Shares, Preferred Shares, Junior Shares, or New Securities by the General Partner, and
the contribution to the Partnership, by the General Partner, of the cash proceeds or other consideration received from such issuance,
if the cash proceeds actually received by the General Partner are less than the gross proceeds of such issuance as a result of
any underwriter’s discount or other expenses paid or incurred in connection with such issuance, then the General Partner
shall be deemed to have made a Capital Contribution to the Partnership in the amount equal to the sum of the cash proceeds of such
issuance plus the amount of such underwriter’s discount and other expenses paid by the General Partner (which discount and
expense shall be treated as an expense for the benefit of the Partnership).

(e)       

Moody II OP issued
40 units of special limited partnership interest therein to Moody National LPOP II, LLC in exchange for a cash contribution to
Moody II OP of $1,000.00 and for services performed or to be performed for Moody II OP and its subsidiaries. Pursuant to the terms
of the Merger Agreement, each such unit of special limited partnership interest in Moody II OP will be converted into a Special
Limited Partnership Unit as reflected on Exhibit A hereto and Moody National LPOP II, LLC will be admitted to the Partnership
as the Special Limited Partner. The Special Limited Partner shall be entitled to certain distributions as provided in Section 5.2
and certain preferential allocations of items of income and gain under Section 5.1. The Special Limited Partnership Units will
be subject to the transfer restrictions set forth in Article 9 and will be subject to redemption pursuant to Section 8.4.

4.4       

Additional
Funding.

If the General Partner
determines that it is in the best interests of the Partnership to provide for additional Partnership funds (“Additional
Funds”) for any Partnership purpose, the General Partner may (i) cause the Partnership to obtain such funds from outside
borrowings or (ii) elect to have the General Partner or any of its Affiliates provide such Additional Funds to the Partnership
through loans or otherwise.

4.5       

Capital Accounts.

(a)       

The Partnership shall
maintain for each Partner a separate capital account (“Capital Account”) in accordance with the rules of Regulations
Section 1.704-1(b)(2)(iv). Each Partner’s Capital Account shall be increased by (i) the amount of such Partner’s Capital
Contributions and (ii) Profit allocated to such Partner and all items of Partnership income and gain allocated to such Partner
pursuant to Sections 5.1(c), 5.1(d) and 5.1(e) and decreased by (x) the amount of cash or Agreed Value of all actual and deemed
distributions of cash or property made to such Partner pursuant to this Agreement and (y) Loss allocated to such Partner and all
items of Partnership deduction and loss allocated to such Partner pursuant to Section 5.1(c).

(b)       

In the event any
interest in the Partnership is Transferred in accordance with the terms of this Agreement, the transferee shall succeed to the
Capital Account of the transferor to the extent it relates to the transferred interest.

(c)       

The provisions of
the Agreement relating to the maintenance of Capital Accounts are intended to comply with Regulations Section 1.704-1(b), and shall
be interpreted and applied in a manner consistent with such Regulations. In the event the General Partner shall determine that
it is prudent to modify the manner in which the Capital Accounts, or any debits or credits thereto (including, without limitation,
debits or credits relating to liabilities which are secured by contributed or distributed property or which are assumed by the
Partnership, the General Partner, or the Limited Partners) are computed in order to comply with such Regulations, the General Partner
may make such modification, provided that it is not likely to have a material effect on the amounts distributable to any Person
upon the dissolution of the Partnership. The General Partner also shall (i) make any adjustments that are necessary or appropriate
to maintain equality between the Capital Accounts of the Partners and the amount of Partnership capital reflected on the Partnership’s
balance sheet, as computed for book purposes, in accordance with Regulations Section 1.704-1(b)(2)(iv)(g) and (ii) make appropriate
modifications in the event that unanticipated events might otherwise cause this Agreement not to comply with Regulations Section
1.704-1(b) or 1.704-2.

    	 	14	 

    	 

    

4.6       

No Interest
on Contributions

No Partner shall
be entitled to interest on its Capital Contribution.

4.7       

Return of
Capital Contributions

No Partner shall
be entitled to withdraw any part of its Capital Contribution or its Capital Account or to receive any distribution from the Partnership,
except as specifically provided in this Agreement. Except as otherwise provided herein, there shall be no obligation to return
to any Partner or withdrawn Partner any part of such Partner’s Capital Contribution for so long as the Partnership continues
in existence.

4.8       

No Third-Party
Beneficiary.

No creditor or other
third party having dealings with the Partnership shall have the right to enforce the right or obligation of any Partner to make
Capital Contributions or loans or to pursue any other right or remedy hereunder or at law or in equity, it being understood and
agreed that the provisions of this Agreement shall be solely for the benefit of, and may be enforced solely by, the parties hereto
and their respective successors and assigns. None of the rights or obligations of the Partners herein set forth to make Capital
Contributions or loans to the Partnership shall be deemed an asset of the Partnership for any purpose by any creditor or other
third party, nor may such rights or obligations be sold, transferred or assigned by the Partnership or pledged or encumbered by
the Partnership to secure any debt or other obligation of the Partnership or of any of the Partners. In addition, it is the intent
of the parties hereto that no distribution to any Limited Partner shall be deemed a return of money or other Property in violation
of the Act. However, if any court of competent jurisdiction holds that, notwithstanding the provisions of this Agreement, any Limited
Partner is obligated to return such money or Property, such obligation shall be the obligation of such Limited Partner and not
of the General Partner. Without limiting the generality of the foregoing, a deficit Capital Account of a Partner shall not be deemed
to be a liability of such Partner nor an asset or Property of the Partnership.

4.9       

Redemption
of REIT Shares.

If, at any time,
any shares of capital stock of the General Partner are redeemed by the General Partner for cash, the Partnership shall, immediately
prior to such redemption, redeem an equal number of equivalent Partnership Units held by the General Partner upon the same terms
and for the same price per Partnership Unit as such shares are redeemed.

4.10       

Exchanges.

If the General Partner
exchanges any REIT Shares of any Class (“Exchanged REIT Shares”) for, or converts any REIT Shares of any Class
to, REIT Shares of a different Class (“Received REIT Shares”), then the General Partner shall, and shall cause
the Partnership to, exchange or convert a number of Partnership Units having the same Class designation as the Exchanged REIT Shares,
for Partnership Units having the same Class designation as the Received REIT Shares on the same terms that the General Partner
exchanged or converted the Exchanged REIT Shares.

Article
5 

PROFITS AND LOSSES; DISTRIBUTIONS

5.1       

Allocation
of Profit and Loss.

(a)       

[Reserved.]

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(b)       

General Allocations.
The items of Profit and Loss of the Partnership for each fiscal year or other applicable period shall be allocated among the Partners
in a manner that will, as nearly as possible, cause the Capital Account balance of each Partner at the end of such fiscal year
or other applicable period to equal (i) the amount of the hypothetical distribution that such Partner would receive if the Partnership
were liquidated on the last day of such period and all assets of the Partnership, including cash, were sold for cash equal to their
Carrying Values, taking into account any adjustments thereto for such period, all liabilities of the Partnership were satisfied
in full in cash according to their terms (limited with respect to each nonrecourse liability to the Carrying Value of the assets
securing such liability) and the remaining cash proceeds (after satisfaction of such liabilities) were distributed in full pursuant
to Section 5.2, minus (ii) the sum of such Partner’s share of Partnership Minimum Gain and Partner Nonrecourse Debt Minimum
Gain and the amount, if any and without duplication, that the Partner would be obligated to contribute to the capital of the Partnership,
all computed as of the date of the hypothetical sale of assets. Notwithstanding the foregoing, the General Partner may make such
allocations as it deems reasonably necessary to give economic effect to the provisions of this Agreement, taking into account facts
and circumstances as the General Partner deems reasonably necessary for this purpose.

(c)       

Special Allocations.
Before applying Section 5.1(b), the following regulatory allocations shall be made in the following order and priority:

(i)       

Minimum Gain Chargeback.
Notwithstanding the provisions of this Section 5.1, if there is a net decrease in Partnership Minimum Gain during any Partnership
Year, each Partner shall be specially allocated items of Partnership income and gain for such year (and, if necessary, subsequent
years) in an amount equal to such Partner’s share of the net decrease in Partnership Minimum Gain, as determined under Regulations
Section 1.704-2(g). Allocations pursuant to the previous sentence shall be made in proportion to the respective amounts required
to be allocated to each Partner pursuant thereto. The items to be so allocated shall be determined in accordance with Regulations
Section 1.704-2(f). This Section 5.1(c)(i) is intended to comply with the minimum gain chargeback requirements in Regulations Section
1.704-2(f) and shall be interpreted consistently therewith.

(ii)       

Partner Minimum Gain
Chargeback. Notwithstanding any other provision of this Section 5.1, if there is a net decrease in Partner Minimum Gain attributable
to a Partner Nonrecourse Debt during any Partnership Year, each Partner who has a share of the Partner Minimum Gain attributable
to such Partner Nonrecourse Debt, determined in accordance with Regulations Section 1.704-2(i)(5), shall be specially allocated
items of Partnership income and gain for such year (and, if necessary, subsequent years) in an amount equal to such Partner’s
share of the net decrease in Partner Minimum Gain attributable to such Partner Nonrecourse Debt, determined in accordance with
Regulations Section 1.704-2(i)(5). Allocations pursuant to the previous sentence shall be made in proportion to the respective
amounts required to be allocated to each Partner pursuant thereto. The items to be so allocated shall be determined in accordance
with Regulations Section 1.704-2(i)(4). This Section 5.1(c)(ii) is intended to comply with the minimum gain chargeback requirement
in Regulations Section 1.704-2(i) and shall be interpreted consistently therewith.

(iii)       

Qualified Income Offset.
In the event any Partner unexpectedly receives any adjustments, allocations or distributions described in Regulations Sections
1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5), or 1.704-1(b)(2)(ii)(d)(6) and such Partner has an Adjusted Capital Account Deficit,
items of Partnership income and gain (consisting of a pro rata portion of each item of Partnership income, including gross income
and gain for the Partnership Year) shall be specially allocated to such Partner in an amount and manner sufficient to eliminate,
to the extent required by the Regulations, its Adjusted Capital Account Deficit created by such adjustments, allocations or distributions
as quickly as possible. This Section 5.1(c)(iii) is intended to constitute a “qualified income offset” under
Regulations Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith.

(iv)       

No Excess Deficit.
To the extent that any Partner has or would have, as a result of an allocation of Net Loss (or item thereof), an Adjusted Capital
Account Deficit, such amount of Net Loss (or item thereof) shall be allocated to the other Partners in accordance with Section
5.1(b), but in a manner which will not produce an Adjusted Capital Account Deficit as to such Partners. To the extent such allocation
would result in all Partners having Adjusted Capital Account Deficits, such Net Loss (or item thereof) shall be allocated to the
General Partner.

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(v)       

Nonrecourse Deductions.
Nonrecourse Deductions for any Partnership Year shall be allocated to the Partners (other than the Special Limited Partner) in
accordance with their respective Percentage Interests. If the General Partner determines in its good faith discretion that the
Partnership’s Nonrecourse Deductions must be allocated in a different ratio to satisfy the safe harbor requirements of the
Regulations promulgated under Section 704(b) of the Code, the General Partner is authorized, upon notice to the Limited Partners,
to revise the prescribed ratio for such Partnership Year to the numerically closest ratio which would satisfy such requirements.

(vi)       

Partner Nonrecourse
Deductions. Any Partner Nonrecourse Deductions for any Partnership Year shall be specially allocated to the Partner who bears the
economic risk of loss with respect to the Partner Nonrecourse Debt to which such Partner Nonrecourse Deductions are attributable
in accordance with Regulations Sections 1.704-2(6)(4) and 1.704-2(i).

(vii)       

Code Section 754 Adjustments.
To the extent an adjustment to the adjusted tax basis of any Partnership asset pursuant to Section 734(b) or 743(b) of the Code
is required, pursuant to Regulations Section 1.704-1(b)(2)(iv)(m), to be taken into account in determining Capital Accounts, the
amount of such adjustment to the Capital Accounts shall be treated as an item of gain (if the adjustment increases the basis of
the asset) or loss (if the adjustment decreases such basis), and such item of gain or loss shall be specially allocated to the
Partners in a manner consistent with the manner in which their Capital Accounts are required to be adjusted pursuant to such section
of the Regulations.

(d)       

Priority Allocations
to the Special Limited Partner. Notwithstanding the provisions of Section 5.1(b) above, the Special Limited Partner shall be allocated
on a priority basis items of income or gain, including, without limitation, items of gain from a sale (including but not limited
to net capital gain realized in connection with the adjustment to the tax book value of Partnership assets under Section 704(b)
of the Code) on a cumulative basis pursuant to this Section 5.1(d) in an amount equal to the amount of distributions made (or in
connection with a sale or winding up or liquidation of the Partnership, to be made) to such Partner.

(e)       

Allocations Between
Transferor and Transferee. If a Partner transfers any part or all of its Partnership Interests, or if Percentage Interests vary
during a Partnership Year, the General Partner, in its sole and absolute discretion, shall determine which method authorized under
the Code and the Regulations shall be used to allocate the distributive shares.

(f)       

 Allocations
for Tax Purposes. All allocations for federal income tax purposes shall be consistent with all allocations in this Section 5.1,
except as otherwise required by Section 704(c) of the Code and Regulations Section 1.704-1(b)(4). The General Partner shall have
the authority to elect the method to be used by the Partnership for allocating items of income, gain, and expense as required by
Section 704(c) of the Code including a method that may result in a Partner receiving a disproportionately larger share of the Partnership
tax depreciation deductions, and such election shall be binding on all Partners.

(g)       

Revisions to Allocations
to Reflect Issuance of Additional Interests. In the event that the Partnership issues additional Partnership Interests to the General
Partner or any Additional Limited Partner pursuant to Article 4 hereof, the General Partner shall make such revisions to this Section
5.1 as it deems necessary to reflect the terms of the issuance of such additional Partnership Interests, including making preferential
allocations to Classes of Partnership Interests that are entitled thereto. Such revisions shall not require the consent or approval
of any other Partner.

    	 	17	 

    	 

    

5.2       

Distribution
of Cash.

(a)       

The Partnership shall
distribute cash on a quarterly (or, at the election of the General Partner, more frequent) basis, in an amount determined by the
General Partner in its sole and absolute discretion, to the Partners who are Partners on the Partnership Record Date with respect
to such quarter (or other distribution period) in accordance with Section 5.2(b). The Partnership shall be deemed to have distributed
cash to the General Partner in an amount equal to the amount of distributions by the General Partner that are reinvested in REIT
Shares issued by the General Partner pursuant to the General Partner’s distribution reinvestment plan, and the General Partner
shall be deemed to have made Capital Contributions to the Partnership in the aggregate amount of such distributions in return for
an equal number of Partnership Units having the same Class designation as the issued REIT Shares.

(b)       

Except for distributions
pursuant to Section 5.6 of this Agreement in connection with the dissolution and liquidation of the Partnership and subject to
the provisions of Sections 5.2(c), 5.2(d) and 5.2(e) and 5.3 of this Agreement, distributions shall be made (i) first, 100% to
the Partners (other than Special Limited Partner) in accordance with their respective Percentage Interests on the Partnership Record
Date until the Limited Partners (other than the Special Limited Partner) have received cumulative distributions under this Section
5.2(b) equal to the aggregate Capital Contributions made by the Limited Partners (other than the Special Limited Partner) to the
Partnership plus a cumulative, noncompounded pre-tax rate of return thereon of 6.0% per annum, determined by taking into account
the dates on which all such Capital Contributions and distributions were made and (ii) second, (A) 85% to the Partners (other than
the Special Limited Partner), in accordance with their respective Percentage Interests on the Partnership Record Date and (B) 15%
to the Special Limited Partner; provided, however, that to the extent that the amount of distributions any Limited Partner would
receive with respect to Partnership Units received in the merger of the Moody I OP and the Moody II OP for REIT I OP Units (as
defined in the Merger Agreement) is less than the amount such Limited Partner would have received with respect to such Partnership
Units if (x) in the case of a distribution of “Net Sales Proceeds” (as defined in the REIT I Partnership Agreement,
as defined in the Merger Agreement) the reference to “6.0%” in this sentence were instead “8.0%,” and (y)
all distributions of cash other than Net Sales Proceeds were made to the Partners in accordance with their Percentage Interests
(subject to differences attributable to differences in Class-specific expense allocations) as described below, an amount equal
to such shortfall should be distributed to such Limited Partner and shall decrease the amount otherwise distributed to the Special
Limited Partner. The amount distributed per Partnership Unit of any Class may differ from the amount per Partnership Unit of another
Class on account of differences in Class-specific expense allocations with respect to REIT Shares as described in the Prospectus
or for other reasons as determined by the Board of Directors of the General Partner. Any such differences shall correspond to differences
in the amount of distributions per REIT Share for REIT Shares of different Classes, with the same adjustments being made to the
amount of distributions per Partnership Unit for Partnership Units of a particular Class as are made to the distributions per REIT
Share by the General Partner with respect to REIT Shares having the same Class designation.

(c)       

Notwithstanding any
other provision of this Agreement, the General Partner is authorized to take any action that it determines to be necessary or appropriate
to cause the Partnership to comply with any withholding requirements established under the Code or any other federal, state or
local law including, without limitation, pursuant to Sections 1441, 1442, 1445 and 1446 of the Code. To the extent that the Partnership
is required to withhold and pay over to any taxing authority any amount resulting from the allocation or distribution of income
to any Partner or assignee (including by reason of Section 1446 of the Code), either (i) if the actual amount to be distributed
to the Partner equals or exceeds the amount required to be withheld by the Partnership, the amount withheld shall be treated as
a distribution of cash in the amount of such withholding to such Partner, or (ii) if the actual amount to be distributed to the
Partner is less than the amount required to be withheld by the Partnership, the actual amount shall be treated as a distribution
of cash in the amount of such withholding and the additional amount required to be withheld shall be treated as a loan (a “Partnership
Loan”) from the Partnership to the Partner on the day the Partnership pays over such amount to a taxing authority. A
Partnership Loan shall be repaid through withholding by the Partnership with respect to subsequent distributions to the applicable
Partner or assignee. In the event that a Limited Partner (a “Defaulting Limited Partner”) fails to pay any amount
owed to the Partnership with respect to the Partnership Loan within fifteen (15) days after demand for payment thereof is made
by the Partnership on the Limited Partner, the General Partner, in its sole and absolute discretion, may elect to make the payment
to the Partnership on behalf of such Defaulting Limited Partner. In such event, on the date of payment, the General Partner shall
be deemed to have extended a loan (a “General Partner Loan”) to the Defaulting Limited Partner in the amount
of the payment made by the General Partner and shall succeed to all rights and remedies of the Partnership against the Defaulting
Limited Partner as to that amount. Without limitation, the General Partner shall have the right to receive any distributions that
otherwise would be made by the Partnership to the Defaulting Limited Partner until such time as the General Partner Loan has been
paid in full, and any such distributions so received by the General Partner shall be treated as having been received by the Defaulting
Limited Partner and immediately paid to the General Partner. Any amounts treated as a Partnership Loan or a General Partner Loan
pursuant to this Section 5.2(c) shall bear interest at the lesser of (i) the base rate on corporate loans at large United States
money center commercial banks, as published from time to time in The Wall Street Journal, or (ii) the maximum lawful rate of interest
on such obligation, such interest to accrue from the date the Partnership or the General Partner, as applicable, is deemed to extend
the loan until such loan is repaid in full.

    	 	18	 

    	 

    

 

(d)       

In no event may a
Partner receive a distribution of cash with respect to a Partnership Unit if such Partner is entitled to receive a cash distribution
as the holder of record of a REIT Share for which all or part of such Partnership Unit has been or will be exchanged.

5.3       

REIT Distribution
Requirements.

The General Partner
shall use its commercially reasonable efforts to cause the Partnership to distribute amounts sufficient to enable the General Partner
to make stockholder distributions that will allow the General Partner to (i) meet its distribution requirement for qualification
as a REIT as set forth in Section 857 of the Code and (ii) avoid any federal income or excise tax liability imposed by the Code.

5.4       

No Right to
Distributions in Kind.

No Partner shall
be entitled to demand property other than cash in connection with any distributions by the Partnership.

5.5       

Limitations
on Return of Capital Contributions.

Notwithstanding any
of the provisions of this Article 5, no Partner shall have the right to receive, and the General Partner shall not have the right
to make, a distribution that includes a return of all or part of a Partner’s Capital Contributions, unless after giving effect
to the return of a Capital Contribution, the sum of all Partnership liabilities, other than the liabilities to a Partner for the
return of his Capital Contribution, does not exceed the fair market value of the Partnership’s assets.

5.6       

Distributions
upon Liquidation.

Upon liquidation
of the Partnership, after payment of, or adequate provision for, debts and obligations of the Partnership, including any Partner
loans, any remaining assets of the Partnership shall be distributed to all Partners in accordance with Section 5.2(b). To the extent
deemed advisable by the General Partner, appropriate arrangements (including the use of a liquidating trust) may be made to assure
that adequate funds are available to pay any contingent debts or obligations.

    	 	19	 

    	 

    

5.7       

Substantial
Economic Effect.

It is the intent
of the Partners that the allocations of Profit and Loss under this Agreement have substantial economic effect (or be consistent
with the Partners’ interests in the Partnership in the case of the allocation of losses attributable to nonrecourse debt)
within the meaning of Section 704(b) of the Code as interpreted by the Regulations promulgated pursuant thereto. Article 5 and
other relevant provisions of this Agreement shall be interpreted in a manner consistent with such intent.

Article
6 

RIGHTS, OBLIGATIONS AND POWERS OF THE GENERAL PARTNER

6.1       

Management
of the Partnership.

(a)       

Except as otherwise
expressly provided in this Agreement, the General Partner shall have full, complete and exclusive discretion to manage and control
the business of the Partnership for the purposes herein stated, and shall make all decisions affecting the business and assets
of the Partnership. Subject to the restrictions specifically contained in this Agreement, the powers of the General Partner shall
include, without limitation, the authority to take the following actions on behalf of the Partnership:

(i)       

to acquire, purchase,
own, operate, lease and dispose of any Real Estate Asset that the General Partner determines is necessary or appropriate or in
the best interests of the business of the Partnership;

(ii)       

to construct buildings
and make other improvements on the Properties;

(iii)       

to authorize, issue,
sell, redeem or otherwise purchase any Partnership Interests or any securities (including secured and unsecured debt obligations
of the Partnership, debt obligations of the Partnership convertible into any class or series of Partnership Interests, or options,
rights, warrants or appreciation rights relating to any Partnership Interests) of the Partnership;

(iv)       

to borrow or lend money
for the Partnership, issue or receive evidence of indebtedness in connection therewith, refinance, increase the amount of, modify,
amend or change the terms of, or extend the time for the payment of, any such indebtedness, and secure such indebtedness by mortgage,
deed of trust, pledge or other lien on the Partnership’s assets;

(v)       

to pay, either directly
or by reimbursement, for all operating costs and general administrative expenses of the Partnership to third parties or to the
General Partner or its Affiliates as set forth in this Agreement;

(vi)       

to guarantee or become
a co-maker of indebtedness of the General Partner or any Subsidiary thereof, refinance, increase the amount of, modify, amend or
change the terms of, or extend the time for the payment of, any such guarantee or indebtedness, and secure such guarantee or indebtedness
by mortgage, deed of trust, pledge or other lien on the Partnership’s assets;

(vii)       

to use assets of the
Partnership (including, without limitation, cash on hand) for any purpose consistent with this Agreement, including, without limitation,
payment, either directly or by reimbursement, of all Administrative Expenses and REIT Expenses of the General Partner, the Partnership
or any Subsidiary of either, to third parties or to the General Partner as set forth in this Agreement;

(viii)       

to lease all or any
portion of any of the Partnership’s assets, whether or not the terms of such leases extend beyond the termination date of
the Partnership and whether or not any portion of the Partnership’s assets so leased are to be occupied by the lessee, or,
in turn, subleased in whole or in part to others, for such consideration and on such terms as the General Partner may determine;

    	 	20	 

    	 

    

 

(ix)       

to prosecute, defend,
arbitrate, or compromise any and all claims or liabilities in favor of or against the Partnership, on such terms and in such manner
as the General Partner may reasonably determine, and similarly to prosecute, settle or defend litigation with respect to the Partners,
the Partnership, or the Partnership’s assets;

(x)       

to file applications,
communicate, and otherwise deal with any and all governmental agencies having jurisdiction over, or in any way affecting, the Partnership’s
assets or any other aspect of the Partnership business;

(xi)       

to make or revoke any
election permitted or required of the Partnership by any taxing authority;

(xii)       

to maintain such insurance
coverage for public liability, fire and casualty, and any and all other insurance for the protection of the Partnership, for the
conservation of Partnership assets, or for any other purpose convenient or beneficial to the Partnership, in such amounts and such
types, as it shall determine from time to time;

(xiii)       

to determine whether
or not to apply any insurance proceeds for any Property to the restoration of such Property or to distribute the same;

(xiv)       

to establish one or
more divisions of the Partnership, to hire and dismiss employees of the Partnership or any division of the Partnership, and to
retain legal counsel, accountants, consultants, real estate brokers, and such other persons, as the General Partner may deem necessary
or appropriate in connection with the Partnership business and to pay therefor such remuneration as the General Partner may deem
reasonable and proper;

(xv)       

to retain other services
of any kind or nature in connection with the Partnership business, and to pay therefor such remuneration as the General Partner
may deem reasonable and proper;

(xvi)       

to negotiate and conclude
agreements on behalf of the Partnership with respect to any of the rights, powers and authority conferred upon the General Partner;

(xvii)       

to maintain accurate
accounting records and to file promptly all federal, state and local income tax returns on behalf of the Partnership;

(xviii)       

to distribute Partnership
cash or other Partnership assets in accordance with this Agreement;

(xix)       

to form or acquire
an interest in, and contribute Property to, any further limited or general partnerships, joint ventures or other relationships
that it deems desirable (including, without limitation, the acquisition of interests in, and the contributions of Property to,
its Subsidiaries and any other Person in which it has an equity interest from time to time);

(xx)       

to establish Partnership
reserves for working capital, capital expenditures, contingent liabilities, or any other valid Partnership purpose;

(xxi)       

to merge, consolidate
or combine the Partnership with or into another Person;

(xxii)       

to do any and all acts
and things necessary or prudent to ensure that the Partnership will not be classified as a “publicly traded partnership”
that is taxable as a corporation under Section 7704 of the Code; and

    	 	21	 

    	 

    

 

(xxiii)       

to take such other
action, execute, acknowledge, swear to or deliver such other documents and instruments, and perform any and all other acts that
the General Partner deems necessary or appropriate for the formation, continuation and conduct of the business and affairs of the
Partnership (including, without limitation, all actions consistent with allowing the General Partner at all times to qualify as
a REIT unless the General Partner voluntarily terminates its REIT status) and to possess and enjoy all of the rights and powers
of a general partner as provided by the Act.

(b)       

Except as otherwise
provided herein, to the extent the duties of the General Partner require expenditures of funds to be paid to third parties, the
General Partner shall not have any obligations hereunder except to the extent that Partnership funds are reasonably available to
it for the performance of such duties, and nothing herein contained shall be deemed to authorize or require the General Partner,
in its capacity as such, to expend its individual funds for payment to third parties or to undertake any individual liability or
obligation on behalf of the Partnership.

6.2       

Delegation
of Authority.

The General Partner
may delegate any or all of its powers, rights and obligations hereunder, and may appoint, employ, contract or otherwise deal with
any Person for the transaction of the business of the Partnership, which Person may, under supervision of the General Partner,
perform any acts or services for the Partnership as the General Partner may approve.

6.3       

Indemnification
and Exculpation of Indemnitees.

(a)       

The Partnership shall
indemnify an Indemnitee from and against any and all losses, claims, damages, liabilities, joint or several, expenses (including
reasonable legal fees and expenses), judgments, fines, settlements, and other amounts arising from any and all claims, demands,
actions, suits or proceedings, civil, criminal, administrative or investigative, that relate to the operations of the Partnership
as set forth in this Agreement in which any Indemnitee may be involved, or is threatened to be involved, as a party or otherwise,
unless it is established that: (i) the act or omission of the Indemnitee was material to the matter giving rise to the proceeding
and either was committed in bad faith or was the result of active and deliberate dishonesty; (ii) the Indemnitee actually received
an improper personal benefit in money, Property or services; or (iii) in the case of any criminal proceeding, the Indemnitee had
reasonable cause to believe that the act or omission was unlawful. Any indemnification pursuant to this Section 6.3 shall be made
only out of the assets of the Partnership.

(b)       

The Partnership shall
reimburse an Indemnitee for reasonable expenses incurred by an Indemnitee who is a party to a proceeding in advance of the final
disposition of the proceeding upon receipt by the Partnership of (i) a written affirmation by the Indemnitee of the Indemnitee’s
good faith belief that the standard of conduct necessary for indemnification by the Partnership as authorized in this Section 6.3
has been met and (ii) a written undertaking by or on behalf of the Indemnitee to repay the amount if it shall ultimately be determined
that the standard of conduct has not been met.

(c)       

The indemnification
provided by this Section 6.3 shall be in addition to any other rights to which an Indemnitee or any other Person may be entitled
under any agreement, pursuant to any vote of the Partners, as a matter of law or otherwise, and shall continue as to an Indemnitee
who has ceased to serve in such capacity.

(d)       

The Partnership may
purchase and maintain insurance, on behalf of the Indemnitees and such other Persons as the General Partner shall determine, against
any liability that may be asserted against or expenses that may be incurred by such Person in connection with the Partnership’s
activities, regardless of whether the Partnership would have the power to indemnify such Person against such liability under the
provisions of this Agreement.

    	 	22	 

    	 

    

 

(e)       

For purposes of this
Section 6.3, the Partnership shall be deemed to have requested an Indemnitee to serve as fiduciary of an employee benefit plan
whenever the performance by it of its duties to the Partnership also imposes duties on, or otherwise involves services by, it to
the plan or participants or beneficiaries of the plan; excise taxes assessed on an Indemnitee with respect to an employee benefit
plan pursuant to applicable law shall constitute fines within the meaning of this Section 6.3; and actions taken or omitted by
the Indemnitee with respect to an employee benefit plan in the performance of its duties for a purpose reasonably believed by it
to be in the interest of the participants and beneficiaries of the plan shall be deemed to be for a purpose which is not opposed
to the best interests of the Partnership.

(f)       

 In no event
may an Indemnitee subject the Limited Partners to personal liability by reason of the indemnification provisions set forth in this
Agreement.

(g)       

An Indemnitee shall
not be denied indemnification in whole or in part under this Section 6.3 because the Indemnitee had an interest in the transaction
with respect to which the indemnification applies if the transaction was otherwise permitted by the terms of this Agreement.

(h)       

The provisions of
this Section 6.3 are for the benefit of the Indemnitees, their heirs, successors, assigns and administrators and shall not be deemed
to create any rights for the benefit of any other Persons.

(i)       

Notwithstanding the
foregoing, the Partnership may not indemnify or hold harmless an Indemnitee for any liability or loss unless all of the following
conditions are met: (i) the Indemnitee has determined, in good faith, that the course of conduct that caused the loss or liability
was in the best interests of the Partnership; (ii) the Indemnitee was acting on behalf of or performing services for the Partnership;
(iii) the liability or loss was not the result of (A) negligence or misconduct, in the case that the Indemnitee is a director of
the General Partner (other than an Independent Director), the Advisor or an Affiliate of the Advisor or (B) gross negligence or
willful misconduct, in the case that the Indemnitee is an Independent Director; and (iv) the indemnification or agreement to hold
harmless is recoverable only out of net assets of the Partnership. In addition, the Partnership shall not provide indemnification
for any loss, liability or expense arising from or out of an alleged violation of federal or state securities laws by such party
unless one or more of the following conditions are met: (i) there has been a successful adjudication on the merits of each count
involving alleged material securities law violations as to the Indemnitee; (ii) such claims have been dismissed with prejudice
on the merits by a court of competent jurisdiction as to the Indemnitee; or (iii) a court of competent jurisdiction approves a
settlement of the claims against the Indemnitee and finds that indemnification of the settlement and the related costs should be
made, and the court considering the request for indemnification has been advised of the position of the Commission and of the published
position of any state securities regulatory authority in which securities of the General Partner or the Partnership were offered
or sold as to indemnification for violations of securities laws.

6.4       

Liability
of the General Partner.

(a)       

Notwithstanding anything
to the contrary set forth in this Agreement, the General Partner shall not be liable for monetary damages to the Partnership or
any Partners for losses sustained or liabilities incurred as a result of errors in judgment or of any act or omission if the General
Partner acted in good faith. The General Partner shall not be in breach of any duty that the General Partner may owe to the Limited
Partners or the Partnership or any other Persons under this Agreement or of any duty stated or implied by law or equity provided
the General Partner, acting in good faith, abides by the terms of this Agreement.

(b)       

The Limited Partners
expressly acknowledge that the General Partner is acting on behalf of the Partnership, itself and its stockholders collectively,
that the General Partner is under no obligation to consider the separate interests of the Limited Partners (including, without
limitation, the tax consequences to Limited Partners or the tax consequences of some, but not all, of the Limited Partners) in
deciding whether to cause the Partnership to take (or decline to take) any actions. In the event of a conflict between the interests
of its stockholders on one hand and the Limited Partners on the other, the General Partner shall endeavor in good faith to resolve
the conflict in a manner not adverse to either its stockholders or the Limited Partners; provided, however, that for so long as
the General Partner directly owns a controlling interest in the Partnership, any such conflict that the General Partner, in its
sole and absolute discretion, determines cannot be resolved in a manner not adverse to either its stockholders or the Limited Partner
shall be resolved in favor of the stockholders. The General Partner shall not be liable for monetary damages for losses sustained,
liabilities incurred, or benefits not derived by Limited Partners in connection with such decisions, provided that the General
Partner has acted in good faith.

    	 	23	 

    	 

    

 

(c)       

Subject to its obligations
and duties as General Partner set forth in Section 6.1 hereof, the General Partner may exercise any of the powers granted to it
under this Agreement and perform any of the duties imposed upon it hereunder either directly or by or through its agents. The General
Partner shall not be responsible for any misconduct or negligence on the part of any such agent appointed by it in good faith.

(d)       

Notwithstanding any
other provisions of this Agreement or the Act, any action of the General Partner on behalf of the Partnership or any decision of
the General Partner to refrain from acting on behalf of the Partnership, undertaken in the good faith belief that such action or
omission is necessary or advisable in order (i) to protect the ability of the General Partner to continue to qualify as a REIT
or (ii) to prevent the General Partner from incurring any taxes under Section 857, Section 4981, or any other provision of the
Code, is expressly authorized under this Agreement and is deemed approved by all of the Limited Partners.

(e)       

Any amendment, modification
or repeal of this Section 6.4 or any provision hereof shall be prospective only and shall not in any way affect the limitations
on the General Partner’s liability to the Partnership and the Limited Partners under this Section 6.4 as in effect immediately
prior to such amendment, modification or repeal with respect to matters occurring, in whole or in part, prior to such amendment,
modification or repeal, regardless of when claims relating to such matters may arise or be asserted.

6.5       

Reimbursement
of General Partner.

(a)       

Except as provided
in this Section 6.5 and elsewhere in this Agreement (including the provisions of Articles 5 and 6 regarding distributions, payments
and allocations to which it may be entitled), the General Partner shall not be compensated for its services as general partner
of the Partnership.

(b)       

The General Partner
shall be reimbursed on a monthly basis, or such other basis as the General Partner may determine in its sole and absolute discretion,
for all Administrative Expenses incurred by the General Partner. Reimbursement of Administrative Expenses shall be treated as an
expense of the Partnership and not as allocations of Partnership income or gain.

6.6       

Outside Activities.

Subject to the Articles
of Incorporation and any agreements entered into by the General Partner or its Affiliates with the Partnership or a Subsidiary,
any officer, director, employee, agent, trustee, Affiliate or stockholder of the General Partner, the General Partner shall be
entitled to and may have business interests and engage in business activities in addition to those relating to the Partnership,
including business interests and activities substantially similar or identical to those of the Partnership. None of the Partnership,
Limited Partners or any other Person shall have any rights by virtue of this Agreement or the partnership relationship established
hereby in any such business ventures, interests or activities, and the General Partner shall have no obligation pursuant to this
Agreement to offer any interest in any such business ventures, interests and activities to the Partnership or any Limited Partner,
even if such opportunity is of a character which, if presented to the Partnership or any Limited Partner, could be taken by such
Person.

6.7       

Employment
or Retention of Affiliates.

(a)       

Any Affiliate of
the General Partner may be employed or retained by the Partnership and may otherwise deal with the Partnership (whether as a buyer,
lessor, lessee, manager, furnisher of goods or services, broker, agent, lender or otherwise) and may receive from the Partnership
any compensation, price, or other payment therefor which the General Partner determines to be fair and reasonable.

    	 	24	 

    	 

    

 

(b)       

The Partnership may
lend or contribute to its Subsidiaries or other Persons in which it has an equity investment, and such Persons may borrow funds
from the Partnership, on terms and conditions established in the sole and absolute discretion of the General Partner. The foregoing
authority shall not create any right or benefit in favor of any Subsidiary or any other Person.

(c)       

The Partnership may
transfer assets to joint ventures, other partnerships, corporations or other business entities in which it is or thereby becomes
a participant upon such terms and subject to such conditions as the General Partner deems are consistent with this Agreement, applicable
law and the REIT status of the General Partner.

(d)       

Except as expressly
permitted by this Agreement, neither the General Partner nor any of its Affiliates shall sell, transfer or convey any Property
to, or purchase any Property from, the Partnership, directly or indirectly, except pursuant to transactions that are, in the General
Partner’s sole discretion, on terms that are fair and reasonable to the Partnership.

6.8       

Title to Partnership
Assets.

Title to Partnership
assets, whether real, personal or mixed and whether tangible or intangible, shall be deemed to be owned by the Partnership as an
entity, and no Partner, individually or collectively, shall have any ownership interest in such Partnership assets or any portion
thereof. Title to any or all of the Partnership assets may be held in the name of the Partnership, the General Partner or one or
more nominees, as the General Partner may determine, including Affiliates of the General Partner. The General Partner hereby declares
and warrants that any Partnership assets for which legal title is held in the name of the General Partner or any nominee or Affiliate
of the General Partner shall be held by the General Partner for the use and benefit of the Partnership in accordance with the provisions
of this Agreement; provided, however, that the General Partner shall use its best efforts to cause beneficial and record title
to such assets to be vested in the Partnership as soon as reasonably practicable. All Partnership assets shall be recorded as the
Property of the Partnership in its books and records, irrespective of the name in which legal title to such Partnership assets
is held.

Article
7 

CHANGES IN GENERAL PARTNER

7.1       

Transfer of
the General Partner’s Partnership Units.

(a)       

The General Partner
shall not transfer all or any portion of its Partnership Units (except as provided in Section 7.4) or withdraw as General Partner
except as provided in, or in connection with a transaction contemplated by, Section 7.1(d).

(b)       

Except as otherwise
provided in Section 7.1(d) hereof, the General Partner shall not engage in any merger, consolidation or other combination with
or into another Person or the sale of all or substantially all of its assets (other than in connection with a change in the General
Partner’s state of incorporation or organizational form), in each case which results in a change of control of the General
Partner (a “Transaction”), unless:

(i)       

the consent of Limited
Partners holding more than 50% of the Percentage Interests of the Limited Partners is obtained;

(ii)       

as a result of such
Transaction all Limited Partners will receive (A) for each Partnership Unit of each Class an amount of cash, securities, or other
Property equal to the greatest amount of cash, securities or other Property paid in the Transaction to a holder of one REIT Share
of the same Class designation as that Partnership Unit in consideration of one REIT Share, provided that if, in connection with
the Transaction, a purchase, tender or exchange offer (“Offer”) shall have been made to and accepted by the
holders of more than 50% of the outstanding REIT Shares, each holder of Partnership Units shall be given the option to exchange
its Partnership Units for the greatest amount of cash, securities, or other Property which a Limited Partner holding Partnership
Units would have received had it (1) exercised its Redemption Right and (2) sold, tendered or exchanged pursuant to the Offer the
REIT Shares received upon exercise of the Redemption Right immediately prior to the expiration of the Offer and (B) for each Special
Limited Partnership Unit an amount of cash, securities or other Property (as applicable based upon the type of consideration and
the proportions thereof paid to holders of REIT Shares in the Transaction) equal to the fair market value of such Special Limited
Partnership Unit at such time as determined in good faith by the General Partner by reference to the value paid for the REIT Shares;
or

    	 	25	 

    	 

    

 

(iii)       

the General Partner
is the surviving entity in the Transaction and either (A) the holders of REIT Shares do not receive cash, securities, or other
Property in the Transaction or (B) all Limited Partners (other than the General Partner or any Subsidiary) receive (1) in exchange
for their Partnership Units of each Class, an amount of cash, securities, or other Property (expressed as an amount per REIT Share)
that is no less than the greatest amount of cash, securities, or other Property (expressed as an amount per REIT Share) received
in the Transaction by any holder of REIT Shares having the same designation as the Partnership Units being exchanged and (2) in
exchange for their Special Limited Partnership Units, an amount of cash, securities or other Property (as applicable based upon
the type of consideration and the proportions thereof paid to holders of REIT Shares in the Transaction) equal to the fair market
value of such Special Limited Partnership Units at such time as determined in good faith by the General Partner by reference to
the value paid for the REIT Shares.

(c)       

Notwithstanding Section
7.1(b), the General Partner may merge with or into or consolidate with another entity if immediately after such merger or consolidation
(i) substantially all of the assets of the successor or surviving entity (the “Survivor”), other than Partnership
Units held by the General Partner, are contributed, directly or indirectly, to the Partnership as a Capital Contribution in exchange
for Partnership Units with a fair market value equal to the value of the assets so contributed as determined by the Survivor in
good faith and (ii) the Survivor expressly agrees to assume all obligations of the General Partner, as appropriate, hereunder.
Upon such contribution and assumption, the Survivor shall have the right and duty to amend this Agreement as set forth in this
Section 7.1(c). The Survivor shall in good faith arrive at a new method for the calculation of the Cash Amount, and the REIT Shares
Amount for a Partnership Unit after any such merger or consolidation so as to approximate the existing method for such calculation
as closely as reasonably possible. Such calculation shall take into account, among other things, the kind and amount of securities,
cash and other Property that was receivable upon such merger or consolidation by a holder of REIT Shares of each Class or options,
warrants or other rights relating thereto, and which a holder of Partnership Units of any Class could have acquired had such Partnership
Units been exchanged immediately prior to such merger or consolidation. Such amendment to this Agreement shall provide for adjustment
to such method of calculation, which shall be as nearly equivalent as may be practicable to the adjustments provided for with respect
to adjustment events described in Section 4.3(b). The Survivor also shall in good faith modify the definition of REIT Shares and
make such amendments to Sections 8.4 and 8.5 hereof so as to approximate the existing rights and obligations set forth in Sections
8.4 and 8.5 as closely as reasonably possible. The above provisions of this Section 7.1(c) shall similarly apply to successive
mergers or consolidations permitted hereunder.

In respect of any
transaction described in the preceding paragraph, the General Partner is required to use its commercially reasonable efforts to
structure such transaction to avoid causing the Limited Partners to recognize a gain for Federal income tax purposes by virtue
of the occurrence of or their participation in such transaction, provided such efforts are consistent with the exercise of the
General Partner’s board of directors’ fiduciary duties to the stockholders of the General Partner under applicable
law.

(d)       

Notwithstanding Section
7.1(a) or (b),

(i)       

a General Partner may
transfer all or any portion of its Partnership Units to (A) a wholly owned Subsidiary of such General Partner or (B) the owner
of all of the ownership interests of such General Partner, and following a transfer of all of its General Partnership Interests,
may withdraw as General Partner; and

(ii)       

the General Partner
may engage in a transaction not required by law or by the rules of any national securities exchange on which the General Partner’s
shares are listed to be submitted to the vote of the holders of the General Partner’s shares.

    	 	26	 

    	 

    

7.2       

Admission
of a Substitute or Additional General Partner.

A Person shall be
admitted as a substitute or additional General Partner of the Partnership only if the following terms and conditions are satisfied:

(a)       

the Person to be
admitted as a substitute or additional General Partner shall have accepted and agreed to be bound by all the terms and provisions
of this Agreement by executing a counterpart thereof and such other documents or instruments as may be required or appropriate
in order to effect the admission of such Person as a General Partner, and a certificate evidencing the admission of such Person
as a General Partner shall have been filed for recordation and all other actions required by Section 2.4 hereof in connection with
such admission shall have been performed;

(b)       

if the Person to
be admitted as a substitute or additional General Partner is a corporation or a partnership it shall have provided the Partnership
with evidence satisfactory to counsel for the Partnership of such Person’s authority to become a General Partner and to be
bound by the terms and provisions of this Agreement; and

(c)       

counsel for the Partnership
shall have rendered an opinion (relying on such opinions from other counsel as may be necessary) that (i) the admission of the
Person to be admitted as a substitute or additional General Partner is in conformity with the Act and (ii) none of the actions
taken in connection with the admission of such Person as a substitute or additional General Partner will cause (x) the Partnership
to be classified other than as a partnership for federal tax purposes, or (y) the loss of any Limited Partner’s limited liability.

7.3       

Effect of
Bankruptcy, Withdrawal, Death or Dissolution of a General Partner.

(a)       

Upon the occurrence
of an Event of Bankruptcy as to a General Partner (and its removal pursuant to Section 7.4(a) hereof) or the death, withdrawal,
removal or dissolution of a General Partner (except that, if a General Partner is on the date of such occurrence a partnership,
the withdrawal, death, dissolution, Event of Bankruptcy as to, or removal of a partner in, such partnership shall be deemed not
to be a dissolution of such General Partner if the business of such General Partner is continued by the remaining partner or partners),
the Partnership shall be dissolved and terminated unless the Partnership is continued pursuant to Section 7.3(b) hereof. The merger
of the General Partner with or into any entity that is admitted as a substitute or successor General Partner pursuant to Section
7.2 hereof shall not be deemed to be the withdrawal, dissolution or removal of the General Partner.

(b)       

Following the occurrence
of an Event of Bankruptcy as to a General Partner (and its removal pursuant to Section 7.4(a) hereof) or the death, withdrawal,
removal or dissolution of a General Partner (except that, if a General Partner is, on the date of such occurrence, a partnership,
the withdrawal of, death, dissolution, Event of Bankruptcy as to, or removal of a partner in, such partnership shall be deemed
not to be a dissolution of such General Partner if the business of such General Partner is continued by the remaining partner or
partners), the Limited Partners, within 90 days after such occurrence, may elect to continue the business of the Partnership for
the balance of the term specified in Section 2.3 hereof by selecting, subject to Section 7.2 hereof and any other provisions of
this Agreement, a substitute General Partner by consent of a majority in interest of the Limited Partners. If the Limited Partners
elect to continue the business of the Partnership and admit a substitute General Partner, the relationship with the Partners and
of any Person who has acquired an interest of a Partner in the Partnership shall be governed by this Agreement.

7.4       

Removal of
a General Partner.

(a)       

Upon the occurrence
of an Event of Bankruptcy as to, or the dissolution of, a General Partner, such General Partner shall be deemed to be removed automatically;
provided, however, that if a General Partner is on the date of such occurrence a partnership, the withdrawal, death or dissolution
of, Event of Bankruptcy as to, or removal of, a partner in, such partnership shall be deemed not to be a dissolution of the General
Partner if the business of such General Partner is continued by the remaining partner or partners. The Limited Partners may not
remove the General Partner, with or without cause.

    	 	27	 

    	 

    

 

(b)       

If a General Partner
has been removed pursuant to this Section 7.4 and the Partnership is continued pursuant to Section 7.3 hereof, such General Partner
shall promptly transfer and assign its Partnership Units to the substitute General Partner approved by a majority in interest of
the Limited Partners in accordance with Section 7.3(b) hereof and otherwise be admitted to the Partnership in accordance with Section
7.2 hereof. At the time of assignment, the removed General Partner shall be entitled to receive from the substitute General Partner
the fair market value of the Partnership Units of such removed General Partner as reduced by any damages caused to the Partnership
by such General Partner. Such fair market value shall be determined by an appraiser mutually agreed upon by the General Partner
and a majority in interest of the Limited Partners within ten (10) days following the removal of the General Partner. In the event
that the parties are unable to agree upon an appraiser, the removed General Partner and a majority in interest of the Limited Partners
each shall select an appraiser. Each such appraiser shall complete an appraisal of the fair market value of the removed General
Partner’s Partnership Units within thirty (30) days of the General Partner’s removal, and the fair market value of
the removed General Partner’s Partnership Units shall be the average of the two appraisals; provided, however, that if the
higher appraisal exceeds the lower appraisal by more than 20% of the amount of the lower appraisal, the two appraisers, no later
than forty (40) days after the removal of the General Partner, shall select a third appraiser who shall complete an appraisal of
the fair market value of the removed General Partner’s Partnership Units no later than sixty (60) days after the removal
of the General Partner. In such case, the fair market value of the removed General Partner’s Partnership Units shall be the
average of the two appraisals closest in value.

(c)       

The Partnership Units
of a removed General Partner, during the time after default until transfer under Section 7.4(b), shall be converted to that of
a Limited Partner; provided, however, such removed General Partner shall not have any rights to participate in the management and
affairs of the Partnership, and shall not be entitled to any portion of the income, expense, profit, gain or loss allocations or
cash distributions allocable or payable, as the case may be, to the Limited Partners. Instead, such removed General Partner shall
receive and be entitled only to retain distributions or allocations of such items that it would have been entitled to receive in
its capacity as General Partner, until the transfer is effective pursuant to Section 7.4(b).

(d)       

All Partners shall
have given and hereby do give such consents, shall take such actions and shall execute such documents as shall be legally necessary,
desirable and sufficient to effect all the foregoing provisions of this Section.

Article
8 

RIGHTS AND OBLIGATIONS OF THE LIMITED PARTNERS

8.1       

Management
of the Partnership.

The Limited Partners
shall not participate in the management or control of Partnership business nor shall they transact any business for the Partnership,
nor shall they have the power to sign for or bind the Partnership, such powers being vested solely and exclusively in the General
Partner.

8.2       

Power of Attorney.

Each Limited Partner
hereby irrevocably appoints the General Partner its true and lawful attorney-in-fact, who may act for each Limited Partner and
in its name, place and stead, and for its use and benefit, to sign, acknowledge, swear to, deliver, file or record, at the appropriate
public offices, any and all documents, certificates, and instruments as may be deemed necessary or desirable by the General Partner
to carry out fully the provisions of this Agreement and the Act in accordance with their terms, which power of attorney is coupled
with an interest and shall survive the death, dissolution or legal incapacity of the Limited Partner, or the transfer by the Limited
Partner of any part or all of its Partnership Interests, unless otherwise stated in this Agreement.

8.3       

Limitation
on Liability of Limited Partners.

No Limited Partner
shall be liable for any debts, liabilities, contracts or obligations of the Partnership. A Limited Partner shall be liable to the
Partnership only to make payments of its Capital Contribution, if any, as and when due hereunder. After its Capital Contribution
is fully paid, no Limited Partner shall, except as otherwise required by the Act, be required to make any further Capital Contributions
or other payments or lend any funds to the Partnership.

 

    	 	28	 

    	 

    

8.4       

Redemption
of Special Limited Partnership Interests.

Upon the earliest
to occur of (a) the termination or nonrenewal of the Advisory Agreement for “cause” (as defined in the Advisory
Agreement), (b) a Termination Event, or (c) the Listing, the Special Limited Partnership Units will be redeemed.

(a)       

If the Advisory Agreement
is terminated or not renewed by the General Partner for “cause” (as defined in the Advisory Agreement), all
of the Special Limited Partnership Units shall be redeemed by the Partnership for $1 within thirty (30) days after the termination
or nonrenewal of the Advisory Agreement.

(b)       

Upon the occurrence
of a Termination Event or the Listing, the Special Limited Partnership Units shall be redeemed for an aggregate amount equal to
the amount that would have been distributed to the Special Limited Partner under Section 5.2(b) if all assets of the Partnership
had been sold for their fair market value, all liabilities of the Partnership had been satisfied in full according to their terms,
and remaining proceeds were distributed to the Partners pursuant to Section 5.2. Such redemption shall occur no later than thirty
(30) days after the date of a Termination Event and no later than 240 days after the Listing. In determining the fair market value
of the assets of the Partnership, (i) in connection with a Termination Event, the General Partner shall obtain an appraisal of
the assets of the Partnership (excluding any assets which may be readily marked to market) and (ii) in connection with the Listing,
the General Partner shall make such determination (a) taking into account, in the event of a Listing on a national securities exchange
only, the market value of the General Partner’s listed shares based upon the average closing price, or average of bid and
asked prices, as the case may be, during a period of thirty (30) days during which such shares are traded beginning one hundred
and twenty (120) days after the Listing or (b) taking into account the value of the General Partner’s shares based upon the
initial public offering price in the event of an underwritten public offering. Payment to the Special Limited Partner upon a Termination
Event or a Listing shall be paid, at the Special Limited Partner’s discretion, in the form of (a) shares of the General Partner’s
common stock or (b) a non-interest bearing promissory note. In the event the Advisor elects to receive shares of the General Partner’s
common stock and the General Partner’s shares are not listed on a national securities exchange, at the option of the Advisor,
the Advisor and the General Partner shall enter into an agreement whereby the General Partner shall register such shares of common
stock with the Commission. However, any payments under a promissory note may not be made in connection with a Termination Event
until either (a) the closing of asset sales that result in aggregate, cumulative distributions to the Partners (other than the
Special Limited Partner) of the Partnership from operating income, sales proceeds and other sources in an amount equal to their
Capital Contributions to the Partnership plus a 6.0% cumulative non-compounded annual pre-tax return thereon, or (b) a Listing
(each a “Subsequent Liquidity Event”). In addition, the principal amount of the promissory note issued in connection
with a Termination Event will be subject to reduction as of the date of the Subsequent Liquidity Event by an amount that will ensure
that, in connection with the Subsequent Liquidity Event, the Special Limited Partner does not receive in excess of 15% of the distributions
that are made or are deemed to be made by the Partnership after the Partners (other than the Special Limited Partner) have received
or are deemed to have received aggregate, cumulative distributions equal to their Capital Contributions to the Partnership plus
a 6.0% cumulative non-compounded annual pre-tax return thereon.

    	 	29	 

    	 

    

8.5       

Redemption
Right.

(a)       

Subject to Sections
8.5(b), 8.5(c), 8.5(d), 8.5(e) and 8.5(f) and the provisions of any agreements between the Partnership and one or more Limited
Partners with respect to Partnership Units held by them, each Limited Partner shall have the right (subject to the terms and conditions
set forth herein) to require the Partnership to redeem (a “Redemption”) all or a portion of the Partnership
Units held by such Limited Partner (the “Tendered Units”) in exchange (a “Redemption Right”)
for REIT Shares issuable on, or the Cash Amount payable on, or a combination thereof having an equivalent value to the REIT Shares
issuable on, or the Cash Amount payable on, the Specified Redemption Date, as determined by the General Partner in its sole discretion,
provided that the Tendered Units shall have been outstanding and held by the Limited Partner for at least one year. Any Redemption
Right shall be exercised pursuant to a Notice of Redemption delivered to the Partnership (with a copy to the General Partner) by
the Limited Partner exercising the Redemption Right (the “Tendering Party”). No Limited Partner may deliver
more than two Notices of Redemption during each calendar year. A Limited Partner may not exercise the Redemption Right for fewer
than 1,000 Partnership Units or, if such Limited Partner holds fewer than 1,000 Partnership Units, all of the Partnership Units
held by such Partner. The Tendering Party shall have no right, with respect to any Partnership Units so redeemed, to receive any
distribution paid with respect to Partnership Units if the record date for such distribution is on or after the Specified Redemption
Date.

(b)       

If the General Partner
elects to redeem Tendered Units for REIT Shares rather than cash, then the Partnership shall direct the General Partner to issue
and deliver such REIT Shares to the Tendering Party pursuant to the terms set forth in this Section 8.5(b), in which case, (i)
the General Partner, acting as a distinct legal entity, shall assume directly the obligation with respect thereto and shall satisfy
the Tendering Party’s exercise of its Redemption Right and (ii) such transaction shall be treated, for Federal income tax
purposes, as a transfer by the Tendering Party of such Tendered Units to the General Partner in exchange for REIT Shares. The percentage
of the Tendered Units tendered for Redemption by the Tendering Party for which the General Partner elects to issue REIT Shares
(rather than cash) is referred to as the “Applicable Percentage.” In making such election to acquire Tendered
Units, the Partnership shall act in a fair, equitable and reasonable manner that neither prefers one group or class of Limited
Partners over another nor discriminates against a group or class of Limited Partners. If the Partnership elects to redeem any number
of Tendered Units for REIT Shares, rather than cash, on the Specified Redemption Date, the Tendering Party shall sell such number
of the Tendered Units to the General Partner in exchange for a number of REIT Shares equal to the product of the REIT Shares Amount
and the Applicable Percentage. The product of the Applicable Percentage and the REIT Shares Amount, if applicable, shall be delivered
by the General Partner as duly authorized, validly issued, fully paid and accessible REIT Shares free of any pledge, lien, encumbrance
or restriction, other than the Aggregate Share Ownership Limit and other restrictions provided in the Articles of Incorporation,
the bylaws of the General Partner, the Securities Act and relevant state securities or “blue sky” laws. Notwithstanding
the provisions of Section 8.5(a) and this Section 8.5(b), the Tendering Parties shall have no rights under this Agreement that
would otherwise be prohibited under the Articles of Incorporation.

(c)       

In connection with
an exercise of Redemption Rights pursuant to this Section 8.5, the Tendering Party shall submit the following to the General Partner,
in addition to the Notice of Redemption:

(1)       

A written affidavit,
dated the same date as the Notice of Redemption, (a) disclosing the actual and constructive ownership, as determined for purposes
of Code Sections 856(a)(6) and 856(h), of REIT Shares by (i) such Tendering Party and (ii) any Related Party and (b) representing
that, after giving effect to the Redemption, and assuming that the General Partner elects to exchange REIT Shares for the Tendered
Units, neither the Tendering Party nor any Related Party will own REIT Shares in excess of the Aggregate Share Ownership Limit
(or, if applicable the Excepted Holder Limit);

(2)       

A written representation
that neither the Tendering Party nor any Related Party has any intention to acquire any additional REIT Shares prior to the closing
of the Redemption on the Specified Redemption Date;

(3)       

An undertaking to certify,
at and as a condition to the closing of the Redemption on the Specified Redemption Date, that either (a) the actual and constructive
ownership of REIT Shares by the Tendering Party and any Related Party remain unchanged from that disclosed in the affidavit required
by Section 8.5(c)(1) or (b) after giving effect to the Redemption, neither the Tendering Party nor any Related Party shall own
REIT Shares in violation of the Aggregate Share Ownership Limit (or, if applicable, the Excepted Holder Limit); and

(4)       

Any other documents
as the General Partner may reasonably require in connection with the issuance of REIT Shares upon the exercise of the Redemption
Right.

(d)       

Any Cash Amount to
be paid to a Tendering Party pursuant to this Section 8.5 shall be paid on the Specified Redemption Date; provided, however, that
the General Partner may elect to cause the Specified Redemption Date to be delayed for up to an additional 180 days to the extent
required for the General Partner to cause additional REIT Shares to be issued to provide financing to be used to make such payment
of the Cash Amount. Notwithstanding the foregoing, the General Partner agrees to use its best efforts to cause the closing of the
acquisition of Tendered Units hereunder to occur as quickly as reasonably possible.

    	 	30	 

    	 

    

 

(e)       

Notwithstanding any
other provision of this Agreement, the General Partner shall place appropriate restrictions on the ability of the Limited Partners
to exercise their Redemption Rights to prevent, among other things, (a) any person from owning shares in excess of the Common Share
Ownership Limit, the Aggregate Share Ownership Limit and the Excepted Holder Limit, (b) the General Partner’s common stock
from being owned by fewer than 100 persons, (c) the General Partner from being “closely held” within the meaning of
section 856(h) of the Code, and (d) to ensure that the Partnership does not constitute a “publicly traded partnership”
under Section 7704 of the Code. If and when the General Partner determines that imposing such restrictions is necessary, the General
Partner shall give prompt written notice thereof (a “Restriction Notice”) to each of the Limited Partners holding
Partnership Units.

(f)       

A redemption fee
may be charged in connection with an exercise of Redemption Rights pursuant to this Section 8.5.

Article
9 

TRANSFERS OF LIMITED PARTNERSHIP INTERESTS AND SPECIAL LIMITED PARTNERSHIP INTERESTS

9.1       

Restrictions
on Transfer of Limited Partnership Interests.

(a)       

No Limited Partner
may offer, sell, assign, hypothecate, pledge or otherwise transfer all or any portion of his Limited Partnership Interests, or
any of such Limited Partner’s economic rights as a Limited Partner, whether voluntarily or by operation of law or at judicial
sale or otherwise (collectively, a “Transfer”) without the consent of the General Partner, which consent may
be granted or withheld in its sole and absolute discretion. Any such purported transfer undertaken without such consent shall be
considered to be null and void ab initio and shall not be given effect. The General Partner may require, as a condition of any
Transfer to which it consents, that the transferor assume all costs incurred by the Partnership in connection therewith.

(b)       

No Limited Partner
may withdraw from the Partnership other than as a result of a permitted Transfer of all of its Limited Partnership Interest pursuant
to this Article 9 or pursuant to a redemption of all of its Partnership Units pursuant to Section 8.5 or, with respect to the Special
Limited Partner, pursuant to the redemption of its Special Limited Partnership Interest pursuant to Section 8.4. Upon the permitted
Transfer or redemption of all of a Limited Partner’s Limited Partnership Units, such Limited Partner shall cease to be a
Limited Partner.

(c)       

No Limited Partner
may effect a Transfer of its Limited Partnership Units, in whole or in part, if, in the opinion of legal counsel for the Partnership,
such proposed Transfer would require the registration of the Limited Partnership Units under the Securities Act or would otherwise
violate any applicable federal or state securities or blue sky law (including investment suitability standards).

(d)       

No Transfer by a
Limited Partner of its Partnership Units, in whole or in part, may be made to any Person if (i) in the opinion of the General Partner
based on the advice of legal counsel for the Partnership, if appropriate, the transfer would result in the Partnership’s
being treated as an association taxable as a corporation (other than a qualified REIT subsidiary within the meaning of Section
856(i) of the Code); (ii) in the opinion of the General Partner based on the advice of legal counsel for the Partnership, if appropriate,
it would adversely affect the ability of the General Partner to continue to qualify as a REIT or subject the General Partner to
any additional taxes under Section 857 or Section 4981 of the Code; (iii) such transfer is effectuated through an “established
securities market” or a “secondary market (or the substantial equivalent thereof)” within the meaning of Section
7704 of the Code; (iv) such Transfer would cause the General Partner to own 10% or more of the ownership interests of any tenant
of a Property held by the partnership within the meaning of Section 856(d)(2)(B) of the Code; or (v) such Transfer would result
in the General Partner being “closely held” within the meaning of Section 856(h) of the Code.

    	 	31	 

    	 

    

 

(e)       

No transfer by a
Limited Partner of any Partnership Units may be made to a lender to the Partnership or any Person who is related (within the meaning
of Regulations Section 1.752-4(b)) to any lender to the Partnership whose loan constitutes a Nonrecourse Liability, without the
consent of the General Partner, which may be withheld in its sole and absolute discretion, provided that as a condition to such
consent the lender will be required to enter into an arrangement with the Partnership and the General Partner to exchange or redeem
for the Cash Amount any Partnership Units in which a security interest is held simultaneously with the time at which such lender
would be deemed to be a Partner in the Partnership for purposes of allocating liabilities to such lender under Section 752 of the
Code.

(f)       

Any Transfer in contravention
of any of the provisions of this Article 9 shall be void and ineffectual and shall not be binding upon, or recognized by, the Partnership.

(g)       

Prior to the consummation
of any Transfer under this Article 9, the transferor and/or the transferee shall deliver to the General Partner such opinions,
certificates and other documents as the General Partner shall request in connection with such Transfer.

9.2       

Admission
of Substitute Limited Partner.

(a)       

Subject to the other
provisions of this Article 9, an assignee of the Partnership Units of a Limited Partner (which shall be understood to include any
purchaser, transferee, donee, or other recipient of any disposition of such Partnership Units) shall be deemed admitted as a Limited
Partner of the Partnership only with the consent of the General Partner and upon the satisfactory completion of the following:

(i)       

 The assignee
shall have accepted and agreed to be bound by the terms and provisions of this Agreement by executing a counterpart or an amendment
thereof, including a revised Exhibit A, and such other documents or instruments as the General Partner may require in order to
effect the admission of such Person as a Limited Partner.

(ii)       

To the extent required,
an amended Certificate evidencing the admission of such Person as a Limited Partner shall have been signed, acknowledged and filed
for record in accordance with the Act.

(iii)       

The assignee shall
have delivered a letter containing the representation set forth in Section 9.1(a) hereof and the agreement set forth in Section
9.1(b) hereof.

(iv)       

If the assignee is
a corporation, partnership or trust, the assignee shall have provided the General Partner with evidence satisfactory to counsel
for the Partnership of the assignee’s authority to become a Limited Partner under the terms and provisions of this Agreement.

(v)       

The assignee shall
have executed a power of attorney containing the terms and provisions set forth in Section 8.2 hereof.

(vi)       

The assignee shall
have paid all legal fees and other expenses of the Partnership and the General Partner and filing and publication costs in connection
with its substitution as a Limited Partner.

(vii)       

The assignee has obtained
the prior written consent of the General Partner to its admission as a Substitute Limited Partner, which consent may be given or
denied in the exercise of the General Partner’s sole and absolute discretion.

9.3       

Rights of
Assignees of Partnership Units.

(a)       

Subject to the provisions
of Sections 9.1 and 9.2 hereof, except as required by operation of law, the Partnership shall not be obligated for any purposes
whatsoever to recognize the assignment by any Limited Partner of its Partnership Units until the Partnership has received notice
thereof.

    	 	32	 

    	 

    

 

(b)       

Any Person who is
the assignee of all or any portion of a Limited Partner’s Partnership Units, but does not become a Substitute Limited Partner
and desires to make a further assignment of such Partnership Units, shall be subject to all the provisions of this Article 9 to
the same extent and in the same manner as any Limited Partner desiring to make an assignment of its Partnership Units.

9.4       

Effect of
Bankruptcy, Death, Incompetence or Termination of a Limited Partner.

The occurrence of
an Event of Bankruptcy as to a Limited Partner, the death of a Limited Partner or a final adjudication that a Limited Partner is
incompetent (which term shall include, but not be limited to, insanity) shall not cause the termination or dissolution of the Partnership,
and the business of the Partnership shall continue if an order for relief in a bankruptcy proceeding is entered against a Limited
Partner, the trustee or receiver of his estate or, if he dies, his executor, administrator or trustee, or, if he is finally adjudicated
incompetent, his committee, guardian or conservator, shall have the rights of such Limited Partner for the purpose of settling
or managing his estate property and such power as the bankrupt, deceased or incompetent Limited Partner possessed to assign all
or any part of his Partnership Units and to join with the assignee in satisfying conditions precedent to the admission of the assignee
as a Substitute Limited Partner.

9.5       

Purchase for
Investment.

(a)       

Each Limited Partner
hereby represents and warrants to the General Partner and to the Partnership that the acquisition of its or his Partnership Units
is made as a principal for his account for investment purposes only and not with a view to the resale or distribution of such Partnership
Units.

(b)       

Each Limited Partner
agrees that it or he will not sell, assign or otherwise transfer his Partnership Units or any fraction thereof, whether voluntarily
or by operation of law or at judicial sale or otherwise, to any Person who does not make the representations and warranties to
the General Partner set forth in Section 9.5(a) above and similarly agree not to sell, assign or transfer such Partnership Units
or fraction thereof to any Person who does not similarly represent, warrant and agree.

Article
10

BOOKS AND RECORDS; ACCOUNTING; TAX MATTERS

10.1       

Books and
Records.

At all times during
the continuance of the Partnership, the Partners shall keep or cause to be kept at the Partnership’s specified office true
and complete books of account in accordance with generally accepted accounting principles, including: (a) a current list of the
full name and last known business address of each Partner, (b) a copy of the Certificate of Limited Partnership and all Certificates
of amendment thereto, (c) copies of the Partnership’s federal, state and local income tax returns and reports, (d) copies
of this Agreement and amendments thereto and any financial statements of the Partnership for the three most recent years and (e)
all documents and information required under the Act. Any Partner or its duly authorized representative, upon paying the costs
of collection, duplication and mailing, shall be entitled to inspect or copy such records during ordinary business hours.

10.2       

Custody of
Partnership Funds; Bank Accounts.

(a)       

All funds of the
Partnership not otherwise invested shall be deposited in one or more accounts maintained in such banking or brokerage institutions
as the General Partner shall determine, and withdrawals shall be made only on such signature or signatures as the General Partner
may, from time to time, determine.

(b)       

All deposits and
other funds not needed in the operation of the business of the Partnership may be invested by the General Partner in investment
grade instruments (or investment companies whose portfolio consists primarily thereof), government obligations, certificates of
deposit, bankers’ acceptances and municipal notes and bonds. The funds of the Partnership shall not be commingled with the
funds of any other Person except for such commingling as may necessarily result from an investment in those investment companies
permitted by this Section 10.2(b).

    	 	33	 

    	 

    

10.3       

Fiscal and
Taxable Year.

The fiscal and taxable
year of the Partnership shall be the calendar year.

10.4       

Annual Tax
Information and Report.

Within seventy-five
(75) days after the end of each fiscal year of the Partnership, the General Partner shall furnish to each person who was a Limited
Partner at any time during such year the tax information necessary to file such Limited Partner’s individual tax returns
as shall be reasonably required by law.

10.5       

Tax Matters
Partner; Partnership Representative; Tax Elections; Special Basis Adjustments.

(a)       

The General Partner
shall be the Tax Matters Partner and the Partnership Representative of the Partnership and shall have the right to take all actions
authorized by the Code for the Tax Matters Partner or Partnership Representative, as applicable. The General Partner shall have
the right to retain professional assistance in respect of any audit of the Partnership by the Service, and all out-of-pocket expenses
and fees incurred by the General Partner on behalf of the Partnership as Tax Matters Partner or Partnership Representative shall
constitute Partnership expenses.

(b)       

All elections required
or permitted to be made by the Partnership under the Code or any applicable state or local tax law shall be made by the General
Partner in its sole and absolute discretion.

(c)       

In the event of a
transfer of all or any part of the Partnership Interest of any Partner, the Partnership, at the option of the General Partner,
may elect pursuant to Section 754 of the Code to adjust the basis of the Partnership’s assets. Notwithstanding anything contained
in Article 5 of this Agreement, any adjustments made pursuant to Section 754 of the Code shall affect only the successor in interest
to the transferring Partner and in no event shall be taken into account in establishing, maintaining or computing Capital Accounts
for the other Partners for any purpose under this Agreement. Each Partner will furnish the Partnership with all information necessary
to give effect to such election.

Article
11

ARTICLE 11 AMENDMENT OF AGREEMENT

The General Partner’s
consent shall be required for any amendment to this Agreement. The General Partner, without the consent of the Limited Partners,
may amend this Agreement in any respect; provided, however, that the following amendments shall require the consent of Limited
Partners holding more than 50% of the Percentage Interests of the Limited Partners:

(a)       

any amendment affecting
the operation of the adjustment events described in Section 4.3(b) or the Redemption Right (except as provided in Section 8.5(d)
or 7.1(d) hereof) in a manner adverse to the Limited Partners;

(b)       

any amendment that
would adversely affect the rights of the Limited Partners to receive the distributions payable to them hereunder, other than with
respect to the issuance of additional Partnership Interests pursuant to Section 4.2 hereof;

(c)       

any amendment that
would alter the Partnership’s allocations of profit and loss to the Limited Partners, other than with respect to the issuance
of additional Partnership Interests pursuant to Section 4.2 hereof; or

    	 	34	 

    	 

    

 

(d)       

any amendment that
would impose on the Limited Partners any obligation to make additional Capital Contributions to the Partnership.

Article
12

ARTICLE 12 GENERAL PROVISIONS

12.1       

Notices.

All communications
required or permitted under this Agreement shall be in writing and shall be deemed to have been given when delivered personally
or upon deposit in the United States mail, registered, postage prepaid return receipt requested, to the Partners at the addresses
set forth in Exhibit A attached hereto; provided, however, that any Partner may specify a different address by notifying the General
Partner in writing of such different address. Notices to the Partnership shall be delivered or mailed to its specified office.

12.2       

Survival of
Rights.

Subject to the provisions
hereof limiting transfers, this Agreement shall be binding upon and inure to the benefit of the Partners and the Partnership and
their respective legal representatives, successors, transferees and assigns.

12.3       

Additional
Documents.

Each Partner agrees
to perform all further acts and execute, swear to, acknowledge and deliver all further documents which may be reasonable, necessary,
appropriate or desirable to carry out the provisions of this Agreement or the Act.

12.4       

Severability.

If any provision
of this Agreement shall be declared illegal, invalid, or unenforceable in any jurisdiction, then such provision shall be deemed
to be severable from this Agreement (to the extent permitted by law) and in any event such illegality, invalidity or unenforceability
shall not affect the remainder hereof.

12.5       

Entire Agreement.

This Agreement and
exhibits attached hereto constitute the entire Agreement of the Partners and supersede all prior written agreements and prior and
contemporaneous oral agreements, understandings and negotiations with respect to the subject matter hereof.

12.6       

Pronouns and
Plurals.

When the context
in which words are used in the Agreement indicates that such is the intent, words in the singular number shall include the plural
and the masculine gender shall include the neuter or female gender as the context may require.

    	 	35	 

    	 

    

12.7       

Headings.

The Article headings
or sections in this Agreement are for convenience only and shall not be used in construing the scope of this Agreement or any particular
Article.

12.8       

Counterparts.

This Agreement may
be executed in several counterparts, each of which shall be deemed to be an original copy and all of which together shall constitute
one and the same instrument binding on all parties hereto, notwithstanding that all parties shall not have signed the same counterpart.

12.9       

Governing
Law.

This Agreement shall
be governed by and construed in accordance with the laws of the State of Delaware; provided, however, that any cause of action
for violation of federal or state securities laws shall not be governed by this Section 12.9.

    	 	36	 

    	 

    

 

IN WITNESS WHEREOF,
the General Partner has affixed its signature to this Agreement, as of the 27th day of September 2017.

	 	GENERAL PARTNER:
	 	 
	 	Moody National REIT II, Inc.
	 	 
	 	By:  	/s/ Brett
    C. Moody 
	 	 	  Brett C. Moody
	 	 	  President and Chief Executive Officer

 

 

 

[Signature Page to Third Amended and
Restated Limited Partnership Agreement of 

Moody National Operating Partnership
II, LP]

 

    	 

    	 

    

 

EXHIBIT A

CONTRIBUTIONS &
INTERESTS

 

Exhibit A, Part 1:
Contributions and Interests Prior to the Partnership Merger Effective Time:

	Partner	 	Capital
 Contribution	 	Class A Units	 	Class D
 Units
	 	Class I
 Units
	 	Class T
 Units
	 	Special
 Limited
 Partnership
 Units	 	Percentage Interests of Units
	GENERAL PARTNER:
 Moody National REIT II, Inc.
 6363
Woodway Drive, Suite 110,

                                                                                                                                                                                                                                                                                                                          Houston, Texas 77057 
	 	 	 	 	 	 	4,880,403.053	 	 	 	  	 	 	 	20,823.605	 	 	 	2,792.452	 	 	 	 	 	 	 	99.6335	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	LIMITED PARTNERS:
 Moody National LPOP II, LLC
 6363
Woodway Drive, Suite 110,

                                                                                                                                                                                                                                                                                                              Houston, Texas 77057 
	 	$	1,000	(1)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	40	 	 	 	—	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Moody OP Holdings II, LLC 
6363 Woodway Drive, Suite 110,

                                                                                Houston, Texas 77057 

	 	$	1,000	(1)	 	 	40	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	.0008	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other Limited Partners	 	$	450,540	 	 	 	18,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	.3657	%
	Totals	 	$	452,540	 	 	 	4,898,443.053	 	 	 	 	 	 	 	20,823.605	 	 	 	2,792.452	 	 	 	 	 	 	 	100	%

______________________

(1)       Contribution
made to Moody II OP prior to Partnership Merger.

 

    	 

    	 

    

Exhibit A, Part 2: Contributions
and Interests Immediately Following the Partnership Merger Effective Time:

 

	Partner	 	Capital
 Contribution	 	Class A Units	 	Class D
 Units
	 	Class I
 Units
	 	Class T
 Units
	 	Special
 Limited
 Partnership
 Units	 	Percentage Interests of Units
	GENERAL PARTNER:
 Moody National REIT II, Inc.
 6363
Woodway Drive, Suite 110,

                                                                                                                                                                                                                                                                                               Houston, Texas 77057 
	 	 	 	 	 	 	8,529,179.053	 	 	 	  	 	 	 	20,823.605	 	 	 	2,792.452	 	 	 	 	 	 	 	96.4360	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	LIMITED PARTNERS:
 Moody National LPOP II, LLC
 6363
Woodway Drive, Suite 110,

                                                                                                                                                                                                                                                                                   Houston, Texas 77057 
	 	$	1,000	(1)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	40	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Moody OP Holdings II, LLC

                                    6363 Woodway Drive, Suite 110,

                                    Houston, Texas 77057 

	 	$	1,000	(1)	 	 	40	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	.0005	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Moody National LPOP I, LLC

                                    6363 Woodway Drive, Suite 110,

                                    Houston, Texas 77057 

	 	$	1,000	(2)	 	 	41	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	.0005	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other Limited Partners	 	$	7,718,737	 	 	 	315,996.092	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	3.5633	%
	Totals	 	$	7,721,737	 	 	 	8,845,256.145	 	 	 	 	 	 	 	20,823.605	 	 	 	2,792.452	 	 	 	 	 	 	 	100.0000	%

______________________

(1)       Contribution
made to Moody II OP prior to Partnership Merger.

(2)       Contribution
made to Original Partnership prior to Partnership Merger. 

 

    	 	A-1	 

    	 

    

 

Exhibit B

Notice of Exercise of Redemption Right

In accordance with
Section 8.5 of the Third Amended and Restated Limited Partnership Agreement (the “Agreement”) of Moody National
Operating Partnership II, LP, the undersigned hereby irrevocably (i) presents for redemption Partnership Units in Moody National
Operating Partnership II, LP in accordance with the terms of the Agreement and the Redemption Right referred to in Section 8.5
thereof, (ii) surrenders such Partnership Units and all right, title and interest therein, and (iii) directs that the Cash Amount
or REIT Shares Amount (as defined in the Agreement) as determined by the General Partner deliverable upon exercise of the Redemption
Right be delivered to the address specified below, and if REIT Shares (as defined in the Agreement) are to be delivered, such REIT
Shares be registered or placed in the name(s) and at the address(es) specified below.

	Dated: ___________, _______	 	 
	 	 	(Name of Limited Partner)
	 	 	 
	 	 	 
	 	 	(Signature of Limited Partner)
	 	 	 
	 	 	 
	 	 	(Mailing Address)
	 	 	 
	 	 	 
	 	 	(City)	(State)	(Zip Code)
	 	 	 
	 	 	Signature Guaranteed by:
	 	 	 
	 	 	 

 

If REIT Shares are
to be issued, issue to:

 

	Name:  	 	 
	 	 	 
	 	 	 
	Social Security	 
	Or Tax I.D.	 
	Number:  	 	 

 

    		B-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00275-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00275-of-00352.parquet"}]]