Document:

Moody
National REIT I, Inc. POS AM

EXHIBIT
10.118

 

AGREEMENT OF PURCHASE AND SALE

 

THIS AGREEMENT OF PURCHASE AND SALE (this
“Agreement”) is made as of the Effective Date (defined below), by and between AUSTIN HWS, LP, a Texas
limited partnership (the “Seller”), and MOODY NATIONAL REIT I, INC., a Maryland corporation (the “Purchaser”).

 

RECITATIONS:

 

A.      Seller is the owner of that certain
tract of land more particularly described on Exhibit “A” attached hereto and made a part hereof, located at
4143 Governors Row, Austin, Texas 78744, Austin, Texas, together with all rights, titles, benefits, easements, privileges, remainders,
tenements, hereditaments, interests, reversions and appurtenances thereunto belonging or in any way appertaining, and all of the
estate, right, title, interest, claim or demand whatsoever of the Seller therein, including in and to adjacent strips and gores,
if any, between the Land and abutting properties, and in and to adjacent streets, highways, roads, alleys or rights-of-way, and
the beds thereof, either at law or in equity, in possession or expectancy, now or hereafter acquired, all water and mineral rights,
if any, development rights, if any, and all easements, rights and other interests appurtenant thereto, if any (the “Land”),
and all buildings and improvements, including the 96-key hotel known as the Homewood Suites by Hilton – Austin/Airport Area
South, located on the Land (the “Improvements”). The Land and the Improvements, together with the Personal Property
are sometimes referred to hereinafter together as the “Hotel”.

 

B.      Purchaser desires to purchase the Property,
including the Hotel, from the Seller, and the Seller desires to sell the Property, including the Hotel, to Purchaser, for the Purchase
Price (as defined below) and upon the terms and conditions hereinafter set forth.

 

NOW, THEREFORE, in consideration
of the mutual covenants, promises and undertakings of the parties hereinafter set forth, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged by the parties, it is agreed:

 

ARTICLE I

DEFINITIONS

 

The following terms shall have the indicated
meanings:

 

1.1           “3-05 Audit” shall have the meaning ascribed to such term in Section
2.4(f).

 

1.2           “Accounts Receivable”
shall mean all accounts receivable of the Hotel which are shown on the city ledger or other applicable records of the Hotel.

 

1.3           “Advance Bookings”
shall mean reservations and agreements made or entered into by Seller or Manager prior to Closing and assumed by Purchaser for
Hotel rooms or meeting rooms to be utilized after Closing, or for catering services or other Hotel services to be provided after
Closing.

 

    	 

    	 

    

  

1.4           “Affiliate” shall
mean any Person that is directly or indirectly (through one or more intermediaries) controlled by, under common control with, or
controlling another Person. For the purposes of this definition, “control” shall mean the possession, directly
or indirectly, of the power to direct or cause the direction of the management and policies of any Person or the power to veto
major policy decisions of any Person, whether through the ownership of voting securities, by contract or otherwise.

 

1.5           “Agreement” shall
have the meaning ascribed to such term in the Preamble.

 

1.6           “Applicable Laws”
shall mean any applicable building, zoning, subdivision, environmental, health, safety or other governmental laws, statutes, ordinances,
resolutions, rules, codes, regulations, orders or determinations of any Governmental Authority or of any insurance boards of underwriters
(or other body exercising similar functions), or any restrictive covenants or deed restrictions affecting the Property or the ownership,
operation, use, maintenance or condition thereof.

 

1.7           “Assignment and Assumption
Agreement” shall mean an assignment and assumption agreement between Seller and Purchaser in substantially the form attached
hereto as Exhibit “D” whereby Seller assigns and Purchaser assumes all of the Seller’s rights, title and interest
in and to the Hotel Agreements which are disclosed to Purchaser and not terminated prior to Closing in accordance with this Agreement.

 

1.8           “Authorizations”
shall mean all certificates of occupancy, licenses, permits, authorizations and approvals required by any governmental or quasi-governmental
agency, body, department, commission, board, bureau, instrumentality or officer, or otherwise appropriate with respect to the construction,
ownership, operation, leasing, maintenance, or use of the Property or any part thereof.

 

1.9           “Bankruptcy Code”
shall have the meaning ascribed to such term in Section 3.21.

 

1.10         “Bill of Sale and General
Assignment” shall mean a bill of sale and general assignment between the Seller and Purchaser in substantially the form
attached hereto as Exhibit “E”, conveying Seller’s right, title and interest, if any, to the Personal Property
(other than Leased Property) from Seller to Purchaser, together with any Warranties and Guaranties related thereto, and the Advanced
Bookings.

 

1.11          “Closing” shall
mean the consummation of the sale and purchase of the Property pursuant to this Agreement.

 

1.12          “Closing Date”
shall mean the date that is twenty-one (21) days following the expiration of the Study Period, subject to Purchaser’s right
to extend the Closing Date for up to an additional fifteen (15) days by providing written notice to Seller on or before the originally
scheduled Closing Date in the event Purchaser has not received Licensor approval of Purchaser or its designee as a franchisee of
the Hotel.

 

1.13          “Closing Documents”
shall have the meaning ascribed to such term in Section 7.1.

 

1.14          “Code” shall have
the meaning ascribed to such term in Section 10.13.

 

    	 

    	 

    

  

1.15          “Covered Audit Period”
shall have the meaning ascribed to such term in Section 2.4(f).

 

1.16          “Deed” shall mean
a special warranty deed in substantially the form attached hereto as Exhibit “F”, conveying fee title to the Real Property
from the Seller to Purchaser, subject to the Permitted Title Exceptions.

 

1.17          “Earnest Money”
shall have the meaning ascribed to such term in Section 2.3.

 

1.18          “Effective Date”
(or other similar phrases such as “date of this Agreement” or “date hereof”) shall mean the
first date on which the Escrow Agent shall have acknowledged receipt of this Agreement fully executed by the Seller and the Purchaser.

 

1.19          “Environmental Conditions”
shall have the meaning ascribed to such term in Section 4.6(c).

 

1.20          “Environmental Laws”
shall mean any present or future federal, state or local laws, statutes, codes, ordinances, rules, regulations, standards, policies,
court orders, decrees, administrative orders, guidelines or other governmental directives, as well as common law, relating to protection
of human health or safety or the environment or relating to Hazardous Materials, including without limitation, the Water Pollution
Control Act (33 U.S.C. § 1251 et seq.), Resource Conservation and Recovery Act (42 U.S.C. § 6901 et seq.),
Safe Drinking Water Act (42 U.S.C. § 3000(f) et seq.), Toxic Substances Control Act (15 U.S.C. § 2601 et seq.),
Clean Air Act (42 U.S.C. § 7401 et seq.), Comprehensive Environmental Response, Compensation and Liability Act (42
U.S.C. § 9601 et seq.), the Hazardous Materials Transportation Act (49 U.S.C. § 1801 et seq.), and any
law, statute, regulation, rule or ordinance of the state in which one or more of the Properties is located and any other governmental
entity with actual or asserted jurisdiction over the Property or part thereof, concerning such hazardous, special or toxic materials,
wastes or substances or any judicial, administrative, or otherwise binding and applicable interpretation of any such laws, rules
or regulations.

 

1.21         “ERISA” shall have
the meaning ascribed to such term in Section 3.6.

 

1.22         “Escrow Agent”
and “Underwriter” shall mean the Old Republic National Title Insurance Company.

 

1.23         “Exchange” shall
have the meaning ascribed to such term in Section 10.13.

 

1.24         “Executive Orders”
shall have the meaning ascribed to such term in Section 4.5.

 

1.25         “Existing PIPS”
shall mean any currently effective property improvement plan issued by Licensor to the Seller with respect to the Hotel for calendar
year 2015 (and, if applicable, prior years).

 

1.26         “Final Rooms Revenue”
shall mean the final nights room revenue for the Hotel (revenue from rooms occupied as of 11:59 p.m. on day prior to the Closing
Date, exclusive of food, beverage, telephone and similar charges which shall be retained by the Seller), including any sales taxes,
room taxes or other taxes thereon.

 

    	 

    	 

    

  

1.27         “FIRPTA Certificate”
shall mean the affidavit of Seller under Section 1445 of the Internal Revenue Code, as amended.

 

1.28         “First Earnest Money Deposit”
shall have the meaning ascribed to such term in Section 2.3.

 

1.29         “Governmental Authority”
shall mean any federal, state, county, municipal or other government or governmental or quasi-governmental agency, department,
commission, board, bureau, office or instrumentality, foreign or domestic, or any of the them.

 

1.30         “Hazardous Substances”
shall have the meaning ascribed to such term in Section 3.14. “Hotel” shall have the definition ascribed to
such term in the Recitals.

 

1.31         “Hotel Agreements”
shall mean collectively the Operating Agreements, Leased Property Agreements, Off-Site Facility Agreements and the Occupancy Agreements.

 

1.32         “Hotel Employees”
shall have the meaning ascribed to such term in Section 3.6.

 

1.33         “Improvements”
shall mean the Hotel and all other buildings, structures, improvements, and all fixtures, systems, facilities and other items of
real estate located on the Land.

 

1.34         “Independent Contract Consideration”
shall mean One Hundred and No/100 Dollars ($100.00) of the Earnest Money which shall be paid by the Escrow Agent to the Seller
in the event that Purchaser elects to terminate this Agreement.

 

1.35         “Insurance Policies”
shall mean all policies of insurance maintained by or on behalf of the Seller pertaining to the Property, its operation, or any
part thereof.

 

1.36         “Intangible Personal Property”
shall mean the Seller’s right, title and interest in and to all intangible personal property owned or possessed by the Seller
and used in connection with the ownership or operation of the Property, including, without limitation, (1) Authorizations, (2)
utility and development rights and privileges, general intangibles, plans and specifications pertaining to the Real Property and
the Personal Property, (3) any unpaid award for taking by condemnation or any damage to the Land by reason of a change of grade
or location of or access to any street or highway, (4) the share of the Final Rooms Revenue determined under Section 7.6(i) hereof,
and (5) Advance Bookings, excluding the Seller’s cash on hand, in the bank accounts and invested with financial or other
institutions.

 

1.37         “Inventory” shall
mean all inventories of food, beverage and consumable items in opened or unopened cases and all in-use reserve stock of linens,
towels, paper goods, soaps, cleaning supplies, office supplies, engineering supplies, maintenance supplies, parts and tools and
other “inventories of merchandise” and “inventories of supplies” as such terms are defined in the Uniform
System of Accounts for Hotels used in connection with the operation and maintenance of the Hotel.

 

1.38        
“Knowledge” means only those matters as to which Charles Leddy or Jeanette Mosley (collectively,
“Seller’s Representatives”) have actual knowledge, with no investigation, verification or inquiry
having been made, other than the duty of such Persons to make a reasonable inquiry of the Manager with respect to the
specific matters or facts then in question, and does not include any imputed, constructive or implied knowledge of any other
kind or nature.

 

    	 

    	 

    

  

1.39         “Land” shall mean
approximately 2.466 acres of land more particularly described on Exhibit “A”, together with all rights, titles,
benefits, easements, privileges, remainders, tenements, hereditaments, interests, reversions and appurtenances thereunto belonging
or in any way appertaining, and all of the estate, right, title, interest, claim or demand whatsoever of the Seller therein, including
in and to adjacent strips and gores, if any, between the Land and abutting properties, and in and to adjacent streets, highways,
roads, alleys or rights-of-way, and the beds thereof, either at law or in equity, in possession or expectancy, now or hereafter
acquired, all water and mineral rights, if any, development rights, if any, and all easements, rights and other interests appurtenant
thereto, if any.

 

1.40         “Leased Property”
shall mean all leased items of Tangible Personal Property, including items subject to any capital lease, operating lease, financing
lease, or any similar agreement (if any).

 

1.41         “Leased Property Agreements”
shall mean all lease agreements pertaining to the Leased Property (if any) set forth on Exhibit “G” hereto, as such
Exhibit may be modified consistent with the provisions of this Agreement.

 

1.42         “License Agreement”
shall mean the license or franchise agreement, dated December 12, 2005, between Licensor and Seller with respect to the Hotel.

 

1.43         “Licensor” shall
mean Promus Hotels, Inc., a Delaware corporation.

 

1.44         [Left Blank Intentionally.]

 

1.45         “Management Agreement”
shall mean that certain [Hotel Management Agreement], dated December 12, 2005, between Manager and Seller with respect to the Hotel.

 

1.46         “Manager” shall
mean Presidian Destinations, Ltd., a Texas limited partnership

 

1.47         “Monetary Title Encumbrances”
shall have the meaning ascribed to such term in Section 2.4(e).

 

1.48         “New Manager” shall
have the meaning ascribed to such term in Section 5.1(e).

 

1.49         “Occupancy Agreements”
shall mean the leases, concession or occupancy agreements in effect with respect to the Real Property under which any tenants (other
than Hotel guests and other than Seller) or concessionaires have the right to occupy space upon the Real Property set forth on
Exhibit “H” hereto, as such Exhibit may be modified consistent with the provisions of this Agreement.

 

1.50        
“Off-Site Facility Agreements” shall mean the leases, contracts and agreements obligating Seller and/or
Manager, if any, pertaining to facilities not located on the Property but which are required and presently used for the
operation of the Hotel including, without limitation, use agreements for local golf courses, and parking or garage contracts
or leases, as set forth on Exhibit “I” hereto, as such Exhibit may be modified consistent with the provisions of
this Agreement.

 

    	 

    	 

    

 

1.51         “Operating Agreements”
shall mean the service, supply, maintenance and repair, and other similar contracts obligating Seller and/or Manager in effect
with respect to the Property (other than the Occupancy Agreements, Leased Property Agreements, Off-Site Facility Agreements and
the Management Agreement) related to construction, operation, or maintenance of the Property and the business conducted thereon,
as set forth on Exhibit “J” hereto, as such Exhibit may be modified consistent with the provisions of this Agreement.

 

1.52         “Owner’s Title Policy”
shall mean an owner’s policy of title insurance issued to Purchaser by the Underwriter, pursuant to which Underwriter insures
Purchaser’s ownership of good and indefeasible fee simple title to the Real Property, subject only to Permitted Title Exceptions.

 

1.53         “Patriot Act” shall
have the meaning ascribed to such term in Section 4.5.

 

1.54         “Permits” shall
have the meaning ascribed to such term in Section 3.13.

 

1.55         “Permitted Title Exceptions”
shall mean the following: (i) all valid matters of record affecting the Property; (ii) building, zoning and subdivision laws, ordinances,
state and federal regulations affecting the Property; (iii) any matters shown on the Existing Survey (and/or any updated survey
obtained by Purchaser) and/or that would be shown by an accurate survey of the Real Property; and (iv) liens for ad valorem taxes
not yet due and payable.

 

1.56         “Person” shall
mean an individual, a partnership, a limited liability company, a corporation, an association, a joint stock company, a trust,
a joint venture, an unincorporated organization, or a Governmental Authority.

 

1.57         “Personal Property”
shall mean collectively the Tangible Personal Property and the Intangible Personal Property.

 

1.58         “Property” shall
mean collectively the Real Property and Personal Property.

 

1.59         “Purchase Price”
shall mean the amount of FOURTEEN MILLION TWO HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS ($14,250,000.00) payable in the manner
described in Section 2.2 hereof, which amount shall include the Inventory.

 

1.60         “Purchaser” shall
have the meaning ascribed to such term in the Preamble.

 

1.61         “Purchaser Parties”
shall mean Purchaser’s directors, officers, lenders, employees, agents, counsel, consultants or representatives.

 

1.62         “Purchaser’s Objections”
shall have the meaning ascribed to such term in Section 2.4(e).

 

1.63         “Purchaser’s PIP”
shall have the meaning ascribed to such term in Section 7.12.

 

    	 

    	 

    

  

1.64         “Real Property”
shall mean the Land and the Improvements.

 

1.65         “REIT Audit” shall
have the meaning ascribed to such term in Section 2.4(f).

 

1.66         “SEC” shall have
the meaning ascribed to such term in Section 6.8.

 

1.67         “Second Earnest Money Deposit”
shall have the meaning ascribed to such term in Section 2.3.

 

1.68         “Seller” shall
have the meaning ascribed to such term in the Preamble.

 

1.69         “Seller’s Response”
shall have the meaning ascribed to such term in Section 2.4(e).

 

1.70         “Seller’s Response
Period” shall have the meaning ascribed to such term in Section 2.4(e).

 

1.71         “Study Period”
shall mean the period ending at 5:00 p.m. on the date which is thirty (30) days following the Effective Date. Except as expressly
noted herein to the contrary, times referred to in this Agreement shall mean the times as in effect, from time to time, in Austin,
Texas.

 

1.72         “Survival Period”
shall have the meaning ascribed to such term in Section 3.22

 

1.73         “Tangible Personal Property”
shall mean the items of tangible personal property consisting of all furniture, fixtures, equipment, machinery, Inventory, all
vehicles used in operation of Property and the Hotel and other tangible personal property of every kind and nature (which does
not include cash-on-hand and petty cash) located at the Hotel and owned by Seller or leased by Seller pursuant to a Leased Property
Agreement, including, without limitation, Seller’s interest as lessee with respect to any such leased Tangible Personal Property,
but only to extent such leasehold interest is assignable without cost or penalty to Seller.

 

1.74         “Terrorism Executive Order”
shall have the meaning ascribed to such term in Section 4.5.

 

1.75         “Title Commitment”
shall have the meaning ascribed to such term in Section 2.4(e).

 

1.76         “Title Company”
shall mean shall mean Moody National Title Company, L.P., 6363 Woodway Dr., Ste. 250, Houston, Texas 77057.

 

1.77         “Updated Survey”
shall mean a current ALTA as-built survey of the Real Property, certified to Purchaser and the Underwriter by a land surveyor or
professional engineer qualified in the jurisdiction in which the Real Property is located.

 

1.78         “Warranties and Guaranties”
shall mean, to the extent assignable, all of Seller’s interest in any existing warranties and guaranties relating to the
development, construction, ownership and operation of the Improvements, the Tangible Personal Property, the Hotel or any part thereof.

 

    	 

    	 

    

 

ARTICLE II 

PURCHASE AND SALE; DEPOSIT; PAYMENT
OF 

PURCHASE PRICE; STUDY PERIOD

 

2.1           Purchase and Sale. The Seller
agrees to sell the Property and Purchaser agrees to purchase the Property, free and clear of all liens and encumbrances, except
for the Permitted Title Exceptions for the Purchase Price and in accordance with and subject to the other terms and conditions
set forth herein.

 

PURCHASER ACKNOWLEDGES AND AGREES
THAT EXCEPT FOR THE SPECIAL WARRANTY OF TITLE IN THE DEED TO BE DELIVERED BY SELLER AT CLOSING AND THE WARRANTIES AND
REPRESENTATIONS SET FORTH IN ARTICLE III OF THIS AGREEMENT, SELLER HAS NOT MADE, DOES NOT MAKE AND SPECIFICALLY DISCLAIMS ANY
REPRESENTATIONS OR WARRANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS OR IMPLIED, ORAL OR WRITTEN, PAST, PRESENT
OR FUTURE, OF, AS TO, CONCERNING OR WITH RESPECT TO: (A) THE NATURE, QUALITY OR CONDITION OF THE PROPERTY, INCLUDING, WITHOUT
LIMITATION, THE WATER, SOIL AND GEOLOGY; (B) THE INCOME TO BE DERIVED FROM THE PROPERTY; (C) THE SUITABILITY OF THE PROPERTY
FOR ANY AND ALL ACTIVITIES AND USES WHICH PURCHASER MAY CONDUCT THEREON; (D) THE COMPLIANCE OF OR BY THE PROPERTY OR ITS
OPERATION WITH ANY LAWS, RULES, ORDINANCES OR REGULATIONS OF ANY APPLICABLE GOVERNMENTAL AUTHORITY OR BODY, INCLUDING,
WITHOUT LIMITATION, THE ENDANGERED SPECIES ACT (“ESA”) AND ANY FEDERAL, STATE, AND/OR LOCAL LAWS AND/OR
REGULATIONS DESIGNED TO IMPLEMENT OR RELATED TO THE ESA; (E) THE HABITABILITY, MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE OF SUCH PROPERTY; OR (F) ANY OTHER MATTER WITH RESPECT TO THE PROPERTY. WITHOUT LIMITING THE FOREGOING, AND EXCEPT AS
OTHERWISE PROVIDED IN THIS AGREEMENT, SELLER DOES NOT AND HAS NOT MADE ANY REPRESENTATION OR WARRANTY REGARDING THE PRESENCE
OR ABSENCE OF ANY HAZARDOUS SUBSTANCES ON, UNDER OR ABOUT THE PROPERTY OR THE COMPLIANCE OR NONCOMPLIANCE OF THE PROPERTY
WITH ANY LAWS REGARDING HAZARDOUS SUBSTANCES. PURCHASER FURTHER ACKNOWLEDGES AND AGREES THAT BEING GIVEN THE OPPORTUNITY TO
INSPECT THE PROPERTY, PURCHASER WILL BE PURCHASING THE PROPERTY PURSUANT TO ITS INDEPENDENT EXAMINATION, STUDY, INSPECTION
AND KNOWLEDGE OF THE PROPERTY, AND PURCHASER IS RELYING UPON ITS OWN DETERMINATION OF THE VALUE OF THE PROPERTY AND USES TO
WHICH THE PROPERTY MAY BE PUT, AND NOT ON ANY INFORMATION PROVIDED OR TO BE PROVIDED BY SELLER. PURCHASER FURTHER
ACKNOWLEDGES AND AGREES THAT ANY INFORMATION PROVIDED OR TO BE PROVIDED WITH RESPECT TO THE PROPERTY WAS OR WILL BE OBTAINED
FROM A VARIETY OF SOURCES AND THAT SELLER HAS NOT MADE AND WILL NOT BE OBLIGATED TO MAKE ANY INDEPENDENT INVESTIGATION OR
VERIFICATION OF SUCH INFORMATION AND SELLER MAKES NO REPRESENTATIONS AS TO THE ACCURACY OR COMPLETENESS OF
SUCH INFORMATION.

 

    	 

    	 

    

 

THE OCCURRENCE OF THE CLOSING SHALL
CONSTITUTE AN ACKNOWLEDGMENT BY PURCHASER THAT THE PROPERTY WAS ACCEPTED WITHOUT REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED
(EXCEPT FOR THE SPECIAL WARRANTY OF TITLE SET FORTH IN THE DEED AND SELLER’S REPRESENTATIONS AND WARRANTIES CONTAINED IN
ARTICLE III), AND OTHERWISE IN AN “AS IS”, “WHERE IS”, AND “WITH ALL FAULTS” CONDITION BASED
SOLELY ON PURCHASER’S OWN INSPECTION AND SELLER’S REPRESENTATIONS AND WARRANTIES CONTAINED IN ARTICLE III OF
THIS AGREEMENT. THE ACKNOWLEDGMENTS AND AGREEMENTS OF PURCHASER SET FORTH IN THIS SECTION 2.1 SHALL SURVIVE THE CLOSING
AND SHALL NOT BE MERGED THEREIN. THIS ENTIRE PARAGRAPH HAS BEEN THE SUBJECT OF NEGOTIATION BETWEEN THE PARTIES TO THIS AGREEMENT,
AND THE TERMS CONTAINED IN THIS SECTION 2.1 HAVE BEEN BARGAINED FOR AND ARE A MATERIAL PART OF THE CONSIDERATION FOR THIS
AGREEMENT.

 

PURCHASER HEREBY KNOWINGLY WAIVES, TO
THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHTS, BENEFITS AND REMEDIES UNDER THE TEXAS DECEPTIVE TRADE PRACTICES-CONSUMER
PROTECTION ACT SET FORTH IN SUBCHAPTER E OF CHAPTER 17 OF THE TEXAS BUSINESS AND COMMERCE CODE WITH RESPECT TO ANY MATTERS PERTAINING
TO THIS AGREEMENT AND THE TRANSACTION CONTEMPLATED HEREBY. IN CONNECTION WITH THE WAIVER SET FORTH IN THIS PARAGRAPH, PURCHASER
STATES, ADOPTS, ACKNOWLEDGES, AND REPRESENTS THE FOLLOWING: PURCHASER WAIVES ITS RIGHTS UNDER THE DECEPTIVE TRADE PRACTICES-CONSUMER
PROTECTION ACT, SECTION 17.41 ET SEQ., TEXAS BUSINESS AND COMMERCE CODE. AFTER CONSULTATION WITH AN ATTORNEY OF ITS OWN SELECTION,
PURCHASER VOLUNTARILY CONSENTS TO THIS WAIVER.

 

2.2           Payment of
Purchase Price. Purchaser shall pay the Purchase Price, as adjusted in the manner specified in Article VII and as set forth
below, to the Seller (or other party designated by the Seller) at Closing by making a wire transfer of immediately available federal
funds to the account of the Seller (or other party designated by the Seller). Such wire transfer shall be sent by Purchaser to
the Title Company for the account of the Seller on the Closing Date.

 

2.3           Earnest
Money. Within one (1) business day following the Effective Date, Purchaser will deliver to the Escrow Agent the sum of TWO
HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS ($250,000.00) (the “First Earnest Money Deposit”). Within one (1)
business day following the expiration of the Study Period, assuming Purchaser has not previously elected to terminate this Agreement,
Purchaser shall deliver to the Escrow Agent the additional sum of TWO HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS ($250,000.00)
(the “Second Earnest Money Deposit”) (the First Earnest Money Deposit and the Second Earnest Money Deposit,
if any, and all interest earned thereon are hereinafter collectively referred to as the “Earnest Money”). The
Earnest Money shall be invested by the Escrow Agent in short term interest bearing accounts at banks or other financial institutions,
which accounts must be insured by the Federal Deposit Insurance Corporation. All interest earned on such deposits shall belong
to the party (as between the Seller and Purchaser) who is entitled to receive the Earnest Money under the applicable provisions
of this Agreement. In the event the transactions contemplated herein are not closed in accordance with the provisions hereof,
the Earnest Money shall be disbursed to either the Seller or Purchaser as provided in this Agreement. Upon the expiration of the
Study Period, the Earnest Money will automatically be at-risk and non-refundable to Purchaser, except as otherwise set forth in
this Agreement. 

 

    	 

    	 

    

 

2.4           Due Diligence.

 

(a)            Purchaser shall have the right, until
5:00 p.m. the last day of the Study Period, and thereafter if Purchaser does not notify the Seller in writing prior to the expiration
of the Study Period that Purchaser has elected to terminate this Agreement, to enter upon the Real Property upon not less than
one (1) full business day’s prior notice to the Seller, and to perform at Purchaser’s expense and subject to terms
and conditions set forth in Section 2.4(d) below, such non-invasive due diligence investigations as Purchaser may deem appropriate.
If prior to the expiration of the Study Period, Purchaser provides written notice to the Seller and Escrow Agent that it has determined
in its sole, absolute and unreviewable discretion, to terminate the Agreement for any reason or no reason whatsoever, this
Agreement shall automatically terminate, the Earnest Money shall be returned to Purchaser and the Seller and Purchaser shall be
released from all further liability or obligation hereunder except those which expressly survive a termination of this Agreement.
In the event of such termination, the Earnest Money, less the Independent Contract Consideration, shall be refunded by the Escrow
Agent to Purchaser without any further notice to Escrow Agent.

 

(b)           Seller shall, on or before 5:00 p.m.
on the date which is five (5) business days following the Effective Date, shall provide the items identified in Exhibit “B”
(collectively, the “Submission Matters”) to Purchaser to the extent such items are in Seller’s possession
or immediate control. Seller, at its sole discretion, may provide the Submission Matters to Purchaser by any combination of the
following methods: delivering copies of the Submission Matters to Purchaser, posting the Submission Matters in an online “war
room” and/or making the Submission Matters available for Seller’s review at the Hotel. In addition, at all times prior
to the Closing, Seller, at no cost to Seller, shall also provide to Purchaser, within two (2) business days of Purchaser’s
written request thereof, such other documents and information as Purchaser or Purchaser’s lender may from time to time reasonably
request which are in Seller’s or the Manager’s possession or control. During the Study Period, upon one (1) business
day prior notice and upon conditions reasonably established by the Seller, the Seller shall also make available at the Hotel to
the Purchaser, and the Purchaser’s agents, auditors, engineers, attorneys, consultants, and potential lessees, partners and
lenders (collectively, the “Purchaser Parties”), for inspections and/or copying at the Purchaser’s expense,
the Seller’s and the Manager’s books, records, and correspondence specifically relating to the Property which are in
the Seller’s or the Manager’s possession at the Hotel, excluding any correspondence or materials subject to the attorney-client
privilege or which the Seller is contractually or legally not permitted to disclose (as to which Seller shall give notice to Purchaser
of same).

 

    	 

    	 

    

 

(c)           
If for any reason whatsoever Purchaser does not purchase the Property, Purchaser, at no cost to Seller, shall promptly do the
following: (i) deliver to the Seller copies of any and all third-party studies, reports, surveys and other information, data
and/or documents relating to the Property or any part thereof prepared at the request of Purchaser, its employees and agents;
and (ii) deliver to the Seller or destroy copies of the Submission Matters delivered to or copied by Purchaser or Purchaser
Parties; provided, however, that Purchaser shall not be obligated to deliver to the Seller any materials of a proprietary
nature (such as, for the purposes of example only, any financial forecast or market repositioning plans) prepared for
Purchaser or Purchaser Parties in connection with the Property. Seller acknowledges that any materials delivered to the
Seller pursuant to the provisions of clause (i) or (ii) shall be without cost to Purchaser and without warranty,
representation or recourse whatsoever other than that such materials have been fully paid for and may be delivered to the
Seller. The terms of this Section 2.4(c) shall survive the termination of this Agreement.

 

(d)           Purchaser shall indemnify, hold harmless
and defend the Seller against any loss, damage, liability or claim for personal injury or property damage and any other loss, damage,
liability, claim or lien to the extent arising from the acts upon the Real Property by Purchaser or Purchaser Parties or any agents,
contractors or employees of Purchaser or Purchaser Parties, except for the discovery of existing conditions of the Real Property.
Purchaser understands and accepts that any on-site inspections of the Property shall occur at reasonable times agreed upon by the
Seller and Purchaser after not less than one (1) business day prior notice to the Seller and shall be conducted so as not to interfere
unreasonably with the operation of the Property and the use of the Property by the tenants and the guests of the Hotel. The Seller
shall have the right to have a representative present during any such inspections. If Purchaser desires to do any invasive testing
at the Property, Purchaser shall do so only after notifying Seller and subject to reasonable terms and conditions as may be proposed
by the Seller. For avoidance of doubt, Purchaser may conduct or perform a so-called “phase I” environmental site assessment
of the Property, but may not conduct or perform any so-called “phase II” environmental site assessment of the Property
or other invasive testing, including, without limitation, ground water sampling or installation and sampling of ground water monitoring
wells, without the prior written consent of Seller, which Seller may withhold in its sole discretion. In the event Purchaser obtains
a “phase I” environmental site assessment of the Property which recommends a “phase II” environmental site
assessment of the Property which Seller disapproves, Seller shall reimburse Purchaser for its reasonable aggregate out-of-pocket
expenses in connection with the proposed purchase of the Property (not to exceed the sum of Twenty-Five Thousand Dollars ($25,000.00)).

 

Purchaser shall not permit any liens to
attach to the Property by reason of such inspections. Purchaser shall (i) restore the Property, at its own expense, to substantially
the same condition which existed prior to any inspections or other activities of Purchaser thereon; and (ii) be responsible for
and pay any and all liens by contractors, subcontractors, materialmen, or laborers performing the inspections or any work for Purchaser
or Purchaser Parties on or related to the Property. The provisions of this Section 2.4(d) shall survive any termination
of this Agreement and a closing of the transaction contemplated hereby.

 

    	 

    	 

    

  

(e)           Within
ten (10) days after the Effective Date, the Seller shall cause the Title Company to furnish to the Purchaser and Seller, a
title insurance commitment bearing an effective date not earlier than thirty (30) days prior to the Effective Date issued by
the Title Company as agent for the Underwriter covering the Real Property, binding the Title Company and Underwriter to issue
the Owner’s Title Policy together with legible copies (to the extent such legible copies are available) of all
documents identified in such title insurance commitment as exceptions to title (collectively, the “Title
Commitment”) with respect to the state of title to the Property and a copy (by PDF file) of Seller’s existing
survey of the Real Property prepared by Roy D. Smith, Registered Professional Surveyor No. 4094 in Seller’s possession
(the “Existing Survey”). Purchaser, at its sole cost and expense, may cause a surveyor licensed to practice in
the state of Texas to furnish to Purchaser and Seller with the Updated Survey. On or before the date that is ten (10) days
prior to the expiration of the Study Period, Purchaser shall notify the Seller in writing of any matters identified in the
Title Commitment and/or Existing Survey (or the Updated Survey if Purchaser has elected obtain it) that the Purchaser is
unwilling to accept (including any defect or failure of the Title Commitment to comply with requirements of this Section
2.4(e)) (collectively, the “Purchaser’s Objections”). Notwithstanding anything herein to the contrary, the
Seller shall be obligated to pay and discharge any encumbrances or obligations arising from delinquent taxes, mortgages,
deeds of trust, security agreements, mechanics’ liens or other similar liens or charges which were created, consented
to, or expressly assumed by Seller, including without limitation any loans, bonds or due and payable obligations to municipal
or other governmental bodies (collectively, “Monetary Title Encumbrances”). No Monetary Title Encumbrances shall
be considered to be a Permitted Title Exception. For such purposes, the Seller may use all or a portion of the Purchase Price
to pay or discharge any such Monetary Title Encumbrances at the Closing. The Seller may notify Purchaser within five (5) days
after receipt of Purchaser’s Objections (the “Seller’s Response Period”) whether the Seller, in
its sole discretion, agrees to cure any of such Purchaser’s Objections, (the “Seller’s Response”). If
the Seller agrees in the Seller’s Response Period to cure any of such Purchaser’s Objections, the Seller shall
use good faith efforts (without the obligation to expend any money or incur any liability) to cure such Purchaser’s
Objections which the Seller has agreed to attempt to cure on or before the Closing. If the Seller does not provide the
Seller’s Response to the Purchaser within the Seller’s Response Period, the Seller shall be deemed to have
elected not to cure Purchaser’s Objections. If (i) Seller elects to not cure or is deemed to have elected not to cure
any Purchaser’s Objections, within five (5) days after receipt of Seller’s Response (or, after the expiration of
Seller’s Response Period in the event no Seller’s Response is delivered), or (ii) in the event Seller agrees in
the Seller’s Response Period to cure any of such Purchaser’s Objections, but fails to do so on or before the
Closing, Purchaser shall, in its sole and absolute discretion and as its sole and exclusive remedy, elect (1) to waive such
Purchaser’s Objections without any abatement in the Purchase Price and proceed to close or (2) to terminate this
Agreement in which case the parties hereto shall be released from all further obligations hereunder, except those which
expressly survive a termination of this Agreement. In the event Purchaser does not timely provide to the Seller notice of
Purchaser’s election in response to Seller’s Response, Purchaser shall be deemed to have elected clause (1) of
the preceding sentence. In the event of Purchaser’s termination or deemed termination pursuant to this Section 2.4(e),
the Earnest Money, less the Independent Contract Consideration, shall be refunded by the Escrow Agent to Purchaser without
any further notice to Escrow Agent and despite any objection or potential objection by Seller.

 

If an updated Title Commitment shows a
recorded exception matter not previously disclosed to Purchaser and such matter (i) was filed of record after the effective date
of the prior Title Commitment and (ii) is reasonably anticipated to materially and detrimentally affect the marketability of title
to the Property, then Purchaser may object to such new matter using the same procedures as provided in the immediately preceding
paragraph and Seller and Purchaser will retain the same options and rights as set forth above with respect to such new matter,
including, without limitation, with respect to Purchaser’s sole and exclusive remedy if Seller elects (or is deemed to have
elected) not cure or fails to cure any such new matter to which Purchaser has properly objected.

 

    	 

    	 

    

 

(f)            At Purchaser’s sole cost and
expense, Purchaser’s auditor may conduct an audit as required of Purchaser pursuant to Rule 3-05 of Securities and Exchange
Commission Regulation S-X (the “3-05 Audit”) of the financial statements of the Property for the three (3) complete
fiscal years immediately preceding the Closing Date and the stub period through the Closing Date (the “Covered Audit Period”),
and Seller shall reasonably cooperate (at no cost to Seller) with Purchaser’s auditor in the conduct of such 3-05 Audit.
Without limiting the foregoing, (i) Purchaser or its designated independent or other auditor may audit the financial statements
of the Property, at Purchaser’s expense and, upon Purchaser’s prior written request, Seller shall allow Purchaser’s
auditors reasonable access to such books and records maintained by Seller in respect to the Property and pertaining to the Covered
Audit Period as necessary to conduct such 3-05 Audit, and (ii) Seller shall use reasonable efforts to provide to Purchaser such
existing financial information as may be reasonably required by Purchaser and required for Purchaser’s auditors to conduct
such 3-05 Audit; provided, however, that the ongoing obligations of Seller shall be limited to providing such information or documentation
as may be in the possession or control of Seller, the Seller’s accountants or Manager, at no cost to any of such parties,
and in the format that Seller or its accountants or Manager have maintained such information. Notwithstanding anything contained
in this paragraph to the contrary, in no event shall Seller or any of Seller’s Affiliates be obligated to disclose any confidential
or non-public financial information with respect to any of Seller’s Affiliates or any property of any such Seller’s
Affiliate. This provision shall survive Closing.

 

(g)           Within fourteen (14) days of the Effective
Date, Purchaser must submit an application to Licensor for the approval of the assignment of the License Agreement to Purchaser
and/or the issuance of a new license agreement covering the Hotel. During the Study Period and thereafter if Purchaser has not
terminated this Agreement pursuant this Section 2.4, Purchaser must use commercially reasonable efforts to obtain Licensor’s
approval prior to the Closing Date of the application(s) described in the immediately preceding sentence.

 

ARTICLE III

SELLER’S REPRESENTATIONS
AND WARRANTIES

 

                In order to induce Purchaser to enter into
this Agreement and to purchase the Property, and to pay the Purchase Price therefor, Seller hereby makes the representations and
warranties set forth below. Each such representation shall be materially true and correct on the Effective Date and shall be materially
true and correct on the Closing Date.

 

3.1           Organization
and Power. Seller is a limited partnership duly organized, validly existing and in good standing under the laws of Texas and
has all requisite power and authority to enter into and perform its obligations hereunder and under any document or instrument
required to be executed and delivered on behalf of the Seller hereunder.

 

3.2           Authorization
and Execution. This Agreement (and all documents contemplated hereby) has been duly authorized by all necessary action on
the part of the Seller, has been duly executed and delivered by the Seller, constitutes the valid and binding agreement of the
Seller and is enforceable against the Seller in accordance with its terms, except as such enforcement may be limited by bankruptcy,
insolvency, moratorium or other similar laws affecting creditors’ rights generally or by the principles governing the availability
of equitable remedies. The Person executing this Agreement on behalf of the Seller, for and on behalf of the Seller, has the authority
to do so.

 

    	 

    	 

    

 

3.3           Non-contravention. Subject to
any consent to the assignment of any particular Hotel Agreement required by the terms thereof or by Applicable Laws, to Seller’s
Knowledge the execution and delivery of, and the performance by the Seller of its obligations under, this Agreement do not and
will not contravene, or constitute a default under, any provision of any Applicable Law or regulation, the Seller’s organizational
documents or any agreement, judgment, injunction, order, decree or other instrument binding upon the Seller or to which the Property
is subject, or result in the creation of any lien or other encumbrance on any asset of the Seller.

 

3.4           Litigation. To Seller’s
Knowledge, there are no actions, suits, arbitrations, governmental investigations or other proceedings pending or threatened against
Seller or affecting the Property before any court or governmental authority, an adverse determination of which would be reasonably
expected to materially and adversely affect (a) the financial condition or operations of Seller or the Hotel, (b) Seller’s
ability to enter into or perform this Agreement or (c) Seller’s title to the Property.

 

3.5           Seller Is Not a “Foreign Person”.
Seller is not a “foreign person” or a “disregarded entity” within the meaning of Section 1445 of the Internal
Revenue Code, as amended (i.e., the Seller is not a foreign corporation, foreign partnership, foreign trust, foreign estate or
foreign person as those terms are defined in the Internal Revenue code and regulations promulgated thereunder).

 

3.6           Labor and Employment Matters.
There are no employees of the Hotel other than those employees who are employed by Manager with respect to the Hotel (collectively,
the “Hotel Employees”). There are no agreements to which Seller is a party relating to any labor or collective
bargaining agreement affecting the Hotel. There are no pension plans of any type with respect to which Seller or the Property has
an obligation. Neither Seller nor Manager has received any written notice from any labor union or group of employees that such
union or group represents or believes or claims it represents or intends to represent any of the employees of Seller or Manager
at the Hotel nor has it received any notice of any claim of unfair labor practices. Seller and Manager have and shall maintain
through the Closing Date a level of employment at the Hotel that is sufficient for the normal business operations of the Hotel
at standards required by the License Agreement. To Seller’s Knowledge the Closing of the transaction contemplated by this
Agreement will not constitute or result in a violation of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”),
or of any state or local statutes regulating investments of and fiduciary obligations with respect to governmental plans (as defined
in Section 3(32) of ERISA).

 

3.7           Insurance. To Seller’s
Knowledge all insurance policies held with respect to the Property by Seller are valid and in full force and effect.

 

3.8           No
Special Taxes. Except as disclosed by the Permitted Title Exceptions or due diligence materials delivered or
otherwise made available by Seller, Seller has no Knowledge of, nor has it received any notice of, any special taxes or
assessments relating to the Property or any part thereof or any planned public improvements that may result in a special tax
or assessment against the Property.

 

    	 

    	 

    

  

3.9           Right to Purchase. Seller has
not granted to any Person other than Purchaser any right to purchase the Property or any portion thereof or interest therein.

 

3.10         Condemnation. To Seller’s
Knowledge, there are no pending or threatened condemnation or similar proceedings affecting the Property.

 

3.11         Title. To Seller’s Knowledge,
Seller has good and indefeasible fee simple title to the Real Property.

 

3.12         Hotel. All Hotel Agreements
are listed on Schedule 3.12 attached hereto. Seller has made or will make available to Purchaser true and complete copies of all
such Hotel Agreements. To Seller’s Knowledge all such Hotel Agreements are in full force and effect, and neither Seller,
nor Manager have given or received any notices of default.

 

3.13         Management and Franchise Agreements.
There are no existing management contracts or franchise (or other similar) agreements relating to the Property other than the Management
Agreement and the License Agreement.

 

3.14         Permits. To Seller’s
Knowledge, all licenses, certificates of occupancy, permits and approvals required to be issued by any governmental authority
or any third party and used in or necessary to the operation of the Hotel as a fully functioning select service hotel (the “Permits”)
have been obtained and are in full force and effect. Each such Permit is listed on Schedule 3.14 attached hereto, and Seller has
made or will make available to Purchaser true and complete copies of each such Permit. Neither Seller nor Manager has received
a written notice from any applicable governmental authority (a) of any violation, default, intended or threatened non-renewal,
suspension or revocation of any of the Permits, the loss of which would have a material adverse effect on the present use and
occupancy of the Hotel or (b) that such party is lacking any permits or licenses necessary for the present use and occupancy of
the Hotel.

 

3.15         Environmental
Matters. Except as disclosed in the environmental reports (and all modifications thereto) listed on Exhibit B, neither
Seller nor Manager has received any written notice from any governmental or regulatory authority of the presence or release
of any substance that is regulated under any Environmental Laws as a pollutant, contaminant or toxic, radioactive or
otherwise hazardous substance, including petroleum, its derivatives or by-products and other hydrocarbons (collectively and
individually, “Hazardous Substances”) that would cause the Hotel to be in violation of any applicable
Environmental Laws and that remains uncured, nor has Seller received written notice from any applicable governmental or
regulatory authority or has any Knowledge that the Hotel is not in compliance with applicable Environmental Laws. Except as
otherwise disclosed in such environmental reports, to Seller’s Knowledge (i) there are no Hazardous Substances located
at, on or under the Hotel, except for small quantities of such materials which are ordinarily used in connection the
operation of the Hotel, including, without limitation commonly used cleaning supplies, and (ii) no Hazardous Substances have
leaked, escaped or been discharged, emitted or otherwise released from the Land underlying the Hotel onto any adjoining
properties or from any adjoining property onto the Property.

 

    	 

    	 

    

 

3.16         Financial Information. Attached
as Schedule 3.16 is a schedule of (a) all of the financial statements of the Seller for each of the last four complete fiscal
years of the Seller, and (b) balance sheets and operating statements for the Hotel for the fiscal periods ending December 31,
2011, 2012, 2013, 2014, a true and complete copy of each of which has been delivered to Purchaser. All of the information contained
in the financial statements and the balance sheets and operating statements has been prepared in accordance with generally accepted
accounting principles applied consistently with past practices, fairly presents the financial position of the Seller and the Hotel
at the end of the period covered and the results of the operations thereof for each such period, and there has been no material
adverse change in the financial condition, operations, results of operations or business of the Hotel since December 31, 2011.

 

3.17         Compliance with Applicable Law.
Neither Seller nor Manager has received any written notice from any governmental authority of any violations of Applicable Laws
with respect to the Hotel.

 

3.18         Taxes. To Seller’s Knowledge,
Seller has duly and timely filed all federal, state and local tax returns required to be filed by it, and all such returns are
true, complete and correct. To Seller’s Knowledge, Seller has duly and timely paid all taxes and any interest and penalties
thereon (including, without limitation, transient occupancy (bed) taxes), assessments and other governmental charges affecting
the Property or required to be paid or collected by Seller in the operation of the Property which have been incurred or are due
and payable (except real property taxes). Neither Seller nor Manager has received any written notice from any tax assessor of any
proposed increase in real estate taxes with respect to the Hotel.

 

3.19         Hotel Improvements. To Seller’s
Knowledge, Licensor has not identified or requested any repairs, improvements or alterations other than those disclosed by the
Existing PIPS.

 

3.20         Possession. Seller has not
granted to any party any license, lease, or other right relating to the use or possession of the Hotel or any part thereof, except
tenants under the Occupancy Agreements and guests in the ordinary course of business.

 

3.21         Municipal Assessment/Notices.
To Seller’s Knowledge, there are no outstanding unpaid municipal assessment notices against the Property.

 

3.22         Bankruptcy. None
of the parties constituting Seller is insolvent within the meaning of Title 11 of the United States Code, as amended (the
“Bankruptcy Code”), and has not ceased to pay its debts as they become due. None of the parties
constituting Seller has filed or taken any action to file a voluntary petition, case or proceeding under any section or
chapter of the Bankruptcy Code, or under any similar law or statute of the United States or any state thereof, relating to
bankruptcy, insolvency, reorganization, winding up or composition or adjustment of its debts; and no such petition, case or
proceeding has been filed against it which has not been dismissed, vacated or stayed on appeal; and none has been adjudicated
as a bankrupt or insolvent or consented to, nor filed an answer admitting or failing reasonably to contest an allegation of
bankruptcy or insolvency. None has sought, or consented to or acquiesced in, the appointment of any receiver, trustee,
liquidator or other custodian of it or a material part of its assets, or has made or taken any action to make a general
assignment for the benefit of creditors or an arrangement, attachment or execution has been levied and no tax lien or other
governmental or similar lien has been filed, against it or a material part of its properties, which has not been duly and
fully discharged prior to the Effective Date.

 

    	 

    	 

    

 

3.23         [Left Blank Intentionally.]

 

3.24         Submission Matters. To Seller’s
Knowledge, all information given by Seller to Purchaser in this Agreement or in connection with the transactions contemplated
hereunder shall be true and accurate in every material respect as of the date prepared. To Seller’s knowledge, Seller has
not failed to disclose any fact to Purchaser necessary to make the representation and warranties contained herein not misleading.

 

3.25         Survival of Seller’s Representations
and Warranties. The representations and warranties of Seller set forth in Article III hereof shall survive Closing
for a period of one (1) year from the Closing Date (the “Survival Period”). No claim for a breach of any representation
or warranty of Seller shall be actionable or payable if the breach in question results from or is based on a condition, state
of facts or other matter which was disclosed in writing to Purchaser and/or actually known by Purchaser prior to Closing. Without
limiting the foregoing, Seller shall have no liability for a breach of any representation or warranty unless (a) the valid claims
for all such breaches collectively aggregate more than $25,000, in which event the full amount of such valid claims shall be actionable,
up to the Cap (as defined in this Section), and (b) written notice containing a description of the specific nature of such breach
shall have been given by Purchaser to Seller and an action shall have been commenced by Purchaser against Seller prior to the
expiration of the Survival Period. As used herein, the term “Cap” shall mean a total aggregate amount of $500,000,
including attorneys’ fees. If Applicable Laws do not permit any specific time limitation provided for in this Section
3.25, then the parties agree alternatively that the applicable time limitation period applicable under this Section is instead
deemed to be the longer period that is the shortest period that Applicable Laws permit the parties to this Agreement to bind themselves
to by mutual written agreement.

 

In the event Seller or Purchaser discovers
a breach of or untruth, inaccuracy, or failure in any Seller’s representations or warranties set forth in Article III
that will have a Material Adverse Effect (hereinafter collectively referred to as a “Breach”) and such Breach
is discovered after the Study Period but before Closing, then the discovering party shall notify the other in writing of the Breach,
and Seller may elect, but shall not be required, to attempt to correct such Breach by the Closing Date. If the Breach is not cured
prior to the Closing Date, then the Purchaser shall, as its sole and exclusive remedy, either (a) terminate this Agreement and
the Earnest Money (less the Independent Consideration in the case of Purchaser’s termination) shall be delivered to Purchaser,
or (b) waive such breach and proceed to Closing.

 

As used in this Agreement, a
“Material Adverse Effect” shall mean a material liquidated monetary claim, material offset right or
aggregate damages resulting from the untruth, inaccuracy or incorrectness of Seller’s representations and warranties in Article
III hereof, in each case in excess of $50,000, which Purchaser had no knowledge prior to the expiration of the Study
Period and for which Seller is unwilling or unable to give Purchaser a credit in cash at Closing.

 

    	 

    	 

    

 

In no event shall Seller’s Representatives
have any personal liability to Purchaser for the breach or inaccuracy of any representation or warranty or for the non-performance
of any covenant contained in this Agreement.

 

The provisions of this Section 3.25
shall survive Closing.

 

ARTICLE IV

PURCHASER’S REPRESENTATIONS
AND WARRANTIES

 

In order to induce the Seller to enter
into this Agreement and to sell the Property, Purchaser hereby makes the following representations and warranties, each of which
is made to Purchaser’s knowledge:

 

4.1           Organization and Power. Purchaser
is a corporation duly organized, validly existing and in good standing under the laws of the State of Maryland and has all requisite
power and authority to enter into and perform its obligations under this Agreement and any document or instrument required to be
executed and delivered on behalf of Purchaser hereunder.

 

4.2           Authorization and Execution.
This Agreement has been (or will, with respect to transactions occurring after the expiration of the Study Period, prior to the
expiration of the Study Period, be) duly authorized by all necessary action on the part of Purchaser, has been duly executed and
delivered by Purchaser, constitutes the valid and binding agreement of Purchaser and is enforceable against Purchaser in accordance
with its terms, except as such enforcement may be limited by bankruptcy, insolvency, moratorium or other similar laws affecting
creditors’ rights generally or by the principles governing the availability of equitable remedies. The Person executing this
Agreement on behalf of Purchaser has the authority to do so.

 

4.3           Non-contravention. The execution
and delivery of this Agreement and the performance by Purchaser of its obligations hereunder do not and will not contravene, or
constitute a default under, any provisions of applicable law or regulation, Purchaser’s organizational documents, or any
agreement, judgment, injunction, order, decree or other instrument binding upon Purchaser or result in the creation of any lien
or other encumbrance on any asset of Purchaser.

 

4.4           Litigation. There is no action,
suit or proceeding, pending or known to be threatened, against or affecting Purchaser in any court or before any arbitrator or
before any Governmental Authority which would materially and adversely affect the ability of Purchaser to perform its obligations
hereunder, or under any document to be delivered pursuant hereto.

 

4.5           OFAC.
Purchaser represents and warrants to Seller that neither Purchaser nor any affiliate of Purchaser is subject to sanctions of
the United States government or in violation of any federal, state, municipal or local laws, statutes, codes, ordinances,
orders, decrees, rules or regulations relating to terrorism or money laundering, including, without limitation, Executive
Order No. 13224, 66 Fed. Reg. 49079 (published September 25, 2001) (the “Terrorism Executive Order”) or is
similarly designated under any related enabling legislation or any other similar Executive Orders (collectively with the
Terrorism Executive Order, the “Executive Orders”), the Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Public Law 107-56, the “Patriot
Act”), any sanctions and regulations promulgated under authority granted by the Trading with the Enemy Act, 50
U.S.C. App. 1-44, as amended from time to time, the International Emergency Economic Powers Act, 50 U.S.C. §§
1701-06, as amended from time to time, the Iraqi Sanctions Act, Publ. L. No. 101-513; United Nations Participation Act, 22
U.S.C. § 287c, as amended from time to time, the International Security and Development Cooperation Act, 22 U.S.C.
§ 2349 aa-9, as amended from time to time, The Cuban Democracy Act, 22 U.S.C. §§ 6001-10, as amended from time
to time, The Cuban Liberty and Democratic Solidarity Act, 18 U.S.C. §§ 2332d and 2339b, as amended from time to
time, and The Foreign Narcotics Kingpin Designation Act, Publ. L. No. 106-120, as amended from time to time.

 

    	 

    	 

    

 

ARTICLE V

CONDITIONS PRECEDENT

 

5.1           As to Purchaser’s Obligations.
Purchaser’s obligations hereunder are subject to the timely satisfaction of the following conditions precedent on or before
the Closing Date or such earlier date as is set forth below.

 

(a)           Seller’s Deliveries. The
Seller shall have delivered to or for the benefit of Purchaser, on or before the Closing Date, all of the documents required of
the Seller pursuant to Sections 7.2 and 7.4 hereof.

 

(b)           Representations, Warranties and
Covenants; Obligations of the Seller; Certificate. All of the Seller’s representations and warranties made in this Agreement,
shall be true and correct in all material respects as of the Effective Date and as of the Closing Date such that no Material Adverse
Effect shall have occurred, except that any such representations and warranties made as of, or limited by, a specific date, which
will be true and correct in all material respects only as of the specified date or as limited by the specified date; and the Seller
shall have performed in all material respects all of its covenants and other obligations under this Agreement. Further, a duly
authorized officer of the Seller shall have executed at Closing a “bring down certificate” with respect to the afresaid
representations and warranties in the form attached hereto as Exhibit K.

 

(c)           Title. Underwriter shall have
authorized the Title Company to issue and deliver Owner’s Title Policy to Purchaser (subject to collection of the premiums therefor).

 

(d)           License Agreement. Purchaser
shall not have received written notice from Licensor that Licensor intends neither (i) to permit a renewal of the License Agreement
for a term of at least ten (10) years, nor (ii) to enter into a new license agreement covering the Hotel for a term of at least
ten (10) years, in each case, (x) due to the opening or planned opening of another hotel franchised by Licensor in the same market
as the Hotel, and (y) regardless of the owner or operator of the Hotel.

 

(e)           Litigation.
Except for matters Seller has disclosed to Purchaser, there shall be no actions, suits, arbitrations,
governmental investigations or other proceedings pending or, to Seller’s Knowledge, threatened against Seller or
affecting the Property before any court or governmental authority, an adverse determination of which might reasonably be
expected to have a Material Adverse Effect on (a) the financial condition or operations of Seller or the Hotel, (b)
Seller’s ability to enter into or perform this Agreement, or (c) Seller’s title to the Property.

 

    	 

    	 

    

  

(f)            Management Agreement. Prior
to the Closing Date, Seller shall have terminated the Management Agreement effective as of the Closing.

 

Each of the conditions contained in this
Section 5.1 are intended for the benefit of the Purchaser and may be waived in whole or in part, by the Purchaser.

 

If the conditions precedent set forth above
are neither satisfied nor waived by Purchaser by the Closing Date, Seller may elect, in its sole discretion, to extend the Closing
Date for period of up to five (5) business days to allow additional time for the parties to use commercially reasonable efforts
to satisfy such conditions precedent. If the conditions precedent set forth above are neither satisfied nor waived by Purchaser
by the Closing Date or the extended Closing Date if Seller exercises the 5 business-day extension described in the immediately
preceding sentence, as the case may be, and provided that Purchaser is not in default of its obligations under this Agreement,
then Purchaser shall, as its sole and exclusive remedy, terminate this Agreement, obtain a refund of the Earnest Money (less the
Independent Contract Consideration) and Seller and Purchaser shall be released from all further liability or obligation hereunder
except those which expressly survive the termination of this Agreement; provided however that if Seller is in default hereof at
the time of such termination, Section 9.1 shall additionally apply.

 

5.2           As to the Seller’s Obligations.
Subject to the provisions of Section 9.2, the Seller’s obligations hereunder are subject to the satisfaction of the following
conditions precedent:

 

(a)           Purchaser’s Deliveries.
Purchaser shall have delivered to or for the benefit of the Seller, on or before the Closing Date, all of the documents and payments
required of the Purchaser pursuant to Sections 7.3 and 7.4 hereof.

 

(b)          Representations, Warranties and
Covenants; Obligations of Purchaser; Certificate. All of Purchaser’s representations and warranties made in this Agreement
shall be true and correct in all material respects as of the date hereof and as of the Closing Date as if then made; and Purchaser
shall have performed in all material respects all of its covenants and other obligations under this Agreement. Further, a duly
authorized officer of Purchaser shall have executed at Closing a “bring down certificate” with respect to the aforesaid
representations and warranties.

 

Each of the conditions contained in this
Section 5.2 are intended for the benefit of Seller and may be waived in whole or in part, by Seller.

 

    	 

    	 

    

 

ARTICLE VI 

PRE-CLOSING (AND CERTAIN POST CLOSING) 

COVENANTS OF SELLER AND PURCHASER

 

6.1           Operating
Agreements/Occupancy Agreements/Leased Property Agreements/Off-Site Facility Agreements. Purchaser will advise Seller in
writing within twenty (20) days after the Effective Date as to which Hotel Agreements Purchaser will assume and which Hotel
Agreements Purchaser requires be terminated at Closing; provided, however, that Seller will have no obligation to
terminate and Purchaser must assume at Closing any of the Hotel Agreements that may not be terminated without penalty. Upon
the expiration of the Study Period and Purchaser’s deposit of the Second Earnest Money, Seller shall, at Seller’s
cost, terminate, as of the Closing Date, all Hotel Agreements with respect to the Property which Purchaser does not expressly
agree to assume and may be terminated by Seller without penalty. Seller shall, at Seller’s cost, terminate, as of the
Closing Date, all existing management agreements with respect to the Property. Seller shall not enter into any new agreement
affecting the Property that Seller or its assignee may not freely terminate upon thirty (30) days’ notice or less
without penalty, or modify any existing agreement affecting the Property (but may terminate any Service Contract that is in
default), which will be binding on the Property after Closing, without first obtaining Purchaser’s approval of the
proposed action, which approval or disapproval shall be in Purchaser’s sole discretion. Should Purchaser fail to notify
Seller in writing of any objections to a new agreement within five (5) business days after receipt of Seller’s written
request for approval, then Purchaser shall be deemed to have approved such new agreement.

 

6.2           Warranties. The Seller shall
not, before or after Closing, release or modify any Warranties and Guaranties, if any, except with the prior written consent of
the Purchaser, which consent shall not be unreasonably withheld, conditioned or delayed.

 

6.3           Insurance. The Seller shall
pay, all premiums on, and shall not cancel or voluntarily allow to expire, any of the Seller’s Insurance Policies unless
such policy is replaced, without any lapse of coverage, by another policy or policies providing coverage at least as extensive
as the policy or policies being replaced.

 

6.4           Operation of Property Prior to Closing.
The Seller covenants and agrees with the Purchaser that, to the extent it is legally entitled to do so, between the date of this
Agreement and the date of Closing:

 

(a)           Subject to the restrictions contained
herein, the Seller shall instruct the Manager to operate and maintain the Property in substantially the same manner in which it
operated and maintained the Property prior to the execution of this Agreement. Seller shall cause the Property to be maintained
in its present order and condition, normal wear and tear and damage caused by casualty excepted, so that the Property shall, except
for normal wear and tear, be in substantially the same condition on the Closing Date as on the Effective Date.

 

(b)           The Seller shall instruct the Manager
to maintain its books of account and records in the usual, regular and ordinary manner, in accordance with accounting principles
and applied on a basis, both consistent with that used in keeping its books in prior years.

 

(c)           The Seller shall instruct the Manager
to pay (subject to legal rights of appeal and protest) prior to delinquency all ad valorem, occupancy and sales taxes due and payable
with respect to the Property or the operation of the Hotel.

 

(d)         
The Seller shall instruct the Manager to continue to take guest room reservations and to book functions and meetings and
otherwise to promote the business of the Property in generally the same manner as it did prior to the execution of this
Agreement; and all advance room bookings and reservations and all meetings and function bookings shall be booked at rates,
prices and charges charged by the Seller for such purposes in the ordinary course of business consistent with past practices.
The Seller acknowledges that the Purchase Price includes the transfer of Advance Bookings.

 

    	 

    	 

    

 

(e)           The Seller shall not enter into any
employment agreements with any Hotel employee which would be binding on the Purchaser with respect to the Property.

 

(f)            The Seller shall promptly advise the
Purchaser of any litigation, arbitration or administrative hearing concerning the Property of which the Seller has received written
notice.

 

(g)           The Seller shall instruct the Manager
to refrain from removing or causing or permitting to be removed any material part or portion of the Real Property or the Tangible
Personal Property owned by the Seller other that in the normal course of business without the prior written consent of the Purchaser,
unless the same is replaced, prior to Closing, with similar items of at least equal suitability, quality and value, free and clear
of any liens or security interests.

 

(h)           The Seller shall cause Manager to keep
the Inventory adequately stocked, consistent with the standards for hotel properties of similar size, quality and location as the
Hotel and as otherwise set forth in the License Agreement, as if the sale of the Hotel were not to occur.

 

6.5           Termination of Employees; WARN Act.
On the Closing Date the employment of all Employees shall be terminated. With respect to such terminations, Purchaser shall rehire
and not terminate a sufficient number of Hotel Employees, and on such terms and conditions, so as to prevent the application of
the Worker Adjustment and Retraining Notification Act or any similar local requirement (“WARN Act”). Seller
and Purchaser shall comply with all Applicable Laws in connection with such terminations and rehiring. For purposes of WARN Act
liability, the Closing Date is considered to be the “effective date of sale”. The provisions of this Section 6.5
shall survive the Closing.

 

6.6           Employee
Claims. Purchaser shall hold harmless, indemnify and defend Seller and Manager and their affiliates from and against any
and all claims, causes of action, proceedings, judgments, damages, penalties, liabilities, costs and expenses (including
reasonable attorneys’ fees and disbursements) incurred by Seller or Manager or any affiliate thereof with respect to
claims, causes of action, judgments, damages, penalties and liabilities asserted by Hotel Employees to the extent arising out
of or related to any act, failure to act, any transaction or any facts or circumstances (i) occurring on or after the Closing
Date, or (ii) undertaken or caused by Purchaser in connection with Closing, including, without limitation (A) the termination
of such Hotel Employees; (B) any and all liability under the WARN Act or similar local requirement, including, without
limitation, any and all liability caused by the failure of Purchaser to rehire a sufficient number of Hotel Employees or the
termination of such employees as provided in Section 6.5; (C) any alleged discrimination, breach of contract or other
wrongful termination; (D) any alleged right to workers’ compensation benefits, unemployment compensation or statutory
or contractual severance; and (E) to the extent credited to Purchaser at Closing, all costs and expenses associated with
salary, wages, bonuses, profit sharing, pension, health and welfare benefits, employee severance payments and other
compensation and fringe benefits that are earned but unpaid as of the Closing Date and which are assumed by Purchaser at the
Closing and sick leave and vacation pay accrued or earned all of which shall be assumed by Purchaser as provided in Section
7.6 hereof, all of which, to the extent credited, Purchaser agrees to honor. The provisions of this Section 6.6
shall survive the Closing.

 

    	 

    	 

    

  

6.7           Reasonable Inspection After Closing.

 

(a)           After Closing, the Seller shall and
shall cause Manager to afford the Purchaser and its agents reasonable access to their books of account, financial and other records,
information, employees and auditors to the extent such items and contact with such persons relate solely to the Property and to
the extent necessary in connection with any audit or any other reasonable business purpose relating to the Property (other than
litigation or investigation of any claim or action against the Seller or the Manager), including, but not limited to a 3-05 Audit
or any other audit which may be required by the Securities Exchange Commission; provided that: (i) any such access by the Purchaser
or its agents shall not unreasonably interfere with the conduct of the Seller’s or the Manager’s business; and (ii)
Purchaser or its agents shall keep the information contained in such records confidential; provided, however, that any such information
compiled in a report and distributed in accordance with Securities and Exchange Commission Regulation S-X and Rule 3-05 and/or
Rule 3-14 shall not be prohibited.

 

(b)           After Closing, the Purchaser shall
afford the Seller and the Manager and their agents reasonable access to its books of account, financial and other records, information,
employees and auditors to the extent such items and contact with such persons relate solely to the Property prior to the Closing
and to the extent necessary in connection with any audit or any other reasonable business purpose relating to the Property (other
than litigation or investigation of any claim or action against the Purchaser); provided that (i) any such access by the Seller,
the Manager or their agents shall not unreasonably interfere with the conduct of the Purchaser’s business; and (ii) the Seller,
Manager or their agents shall keep the information contained in such records confidential. The provisions of this Section 6.7 (a)
and (b) shall survive the Closing.

 

6.8           Condition of Property. Except
as otherwise provided herein, the Seller shall not, after the date of this Agreement, sell, mortgage, encumber, hypothecate or
otherwise transfer or dispose of the Property or any interest therein, or subject the Property to any, covenants, conditions, restrictions,
easements or other title matters or seek any zoning changes without the Purchaser’s prior written consent, which consent
shall be given or withheld in Purchaser’s sole discretion.

 

6.9           Access
to Financial Information. Purchaser’s representatives shall have access to, and the Seller shall and cause Manager
to provide cooperation reasonably requested by Purchaser and furnish upon request, all financial and other information
relating to the Property to the extent reasonably necessary to enable Purchaser’s representatives to complete the REIT
Audit and prepare audited financial statements in conformity with Regulation S-X of the Securities and Exchange Commission
(the “SEC”) and other applicable rules and regulations of the SEC and to enable them to prepare a registration
statement, report or disclosure statement for filing with the SEC on behalf of Purchaser or its affiliates, whether before or
after Closing and regardless of whether such information is included in the records to be transferred to Purchaser hereunder.
Seller shall also provide to Purchaser’s representative a signed representation letter in form and substance reasonably
acceptable to Seller sufficient to enable an independent public accountant to render an opinion on the financial statements
related to the Property. Seller shall maintain its records for use under this Section for a period of not less than one (1)
year after the Closing Date. Purchaser shall promptly reimburse Seller and/or Purchaser for the reasonable costs incurred by
Seller and/or Manager in connection with this Section 6.9. The provisions of this Section shall survive Closing or
termination of this Agreement.

 

    	 

    	 

    

  

ARTICLE VII

CLOSING

 

7.1           Closing. The Closing shall occur
on the Closing Date. As more particularly described below, at the Closing the parties hereto will (a) execute or cause to be executed
(and acknowledged where appropriate) all of the documents required to be delivered in connection with the transactions contemplated
hereby (the “Closing Documents”), (b) deliver or cause to be delivered the same to the Title Company, and (c)
take or cause to be taken all other action required to be taken in respect of the transactions contemplated hereby. The Closing
will occur through escrow, at the Title Company, or at any such other place as the Seller and Purchaser may mutually agree. At
the Closing, Purchaser shall deliver the balance of the Purchase Price to the Title Company as provided herein (and the Earnest
Money shall be disbursed by Escrow Agent to Title Company) on the Closing Date. As provided herein, the parties hereto will agree
upon adjustments and prorations to certain items which cannot be exactly determined at the Closing and will make the appropriate
adjustments with respect thereto. Possession of the Property shall be delivered to Purchaser at the Closing, subject to Permitted
Title Exceptions and guests in possession.

 

7.2           Seller’s Deliveries. At
the Closing, the Seller shall deliver (or cause to be delivered) to the Title Company all of the following instruments, each of
which shall have been duly executed and, where applicable, acknowledged and/or sworn, on behalf of the Seller, and shall be dated
to be effective as of the Closing Date:

 

(a)           The Deed.

 

(b)           The Bill of Sale and General Assignment.

 

(c)           The Assignment and Assumption Agreement.

 

(d)           Certificate(s)/Registration of Title
for any vehicle owned by the Seller and used in connection with the Property (if any).

 

(e)           The FIRPTA Certificate.

 

(f)            The “bring-down certificate”
specified in Section 6.1(b).

 

(g)           Evidence of the termination of the
Management Agreement.

 

(h)           An owner’s title affidavit executed
and acknowledged by Seller substantially in the form attached hereto as Exhibit L.

 

    	 

    	 

    

  

(i)            Such evidence and documents as may
be reasonably required by the Underwriter relating to: (i) the authority of the persons executing the instruments delivered at
Closing on behalf of Seller have the authority to bind Seller to perform its obligations set forth therein, and (ii) parties in
possession.

 

(j)            Any other document or instrument specifically
required by this Agreement.

 

(k)           The Seller shall also cause the Manager
to deliver to Purchaser or make available to Purchaser at the Property:

 

(l)            all original Warranties, Guarantees,
and Hotel Agreements to be assigned to and assumed by Purchaser and in the Seller’s or the Manager’s possession,

 

(m)           information as to all Advance Bookings,
in reasonable detail so as to enable Purchaser to honor the Seller’s commitments in that regard,

 

(n)           
information as to outstanding Accounts Receivable as of midnight on the date prior to the Closing, including the name of each
account and the amount due, and

 

(o)           all keys, passwords, access cards,
combinations, codes and other similar entry or control devices with respect to the Property.

 

7.3           Purchaser’s Deliveries.
At the Closing, Purchaser shall deliver to Title Company the following, duly executed and, where applicable, acknowledged and/or
sworn on behalf of Purchaser, and dated as of the Closing Date:

 

(a)           The Assignment and Assumption Agreement.

 

(b)           The Bill of Sale and General Assignment.

 

(c)           The “bring-down certificate”
specified in Section 6.2(b).

 

(d)           Any other document or instrument specifically
required by this Agreement.

 

(e)           At the Closing, Purchaser shall deliver
to Title Company the Purchase Price (less the Earnest Money and any interest thereon and subject to the revenue and expense allocations
as set forth below) as described in Section 2.2 hereof.

 

7.4           Mutual Deliveries. At the Closing,
Purchaser and the Seller shall mutually execute and deliver each to the other:

 

(a)           A closing statement reflecting the
Purchase Price and the adjustments and prorations required hereunder and the allocation of income and expenses required hereby.

 

(b)           Such other and further documents, papers
and instruments as may be reasonably required by the parties hereto or their respective counsel or the Underwriter to consummate
the transactions contemplated by this Agreement and which are not inconsistent with the Agreement or the other Closing Documents.

 

    	 

    	 

    

  

7.5           Closing Costs. Seller and Purchaser
shall equally divide any escrow fee, recording fees or other expenses or similar charges charged by the Title Company. Seller
shall pay for the cost of the Title Commitment (if any) and for 75% of the cost of the premium for the basic Owner Title Policy.
Seller shall pay for all transfer taxes (which term includes any stamp taxes, recording taxes, documentary transfer taxes, and
similar taxes) and sales taxes payable by reason of the transfer of the Property and the Personal Property, if any. Purchaser
shall pay for 25% of the cost of the premium for the basic Owner Title Policy and the (entire) cost of any endorsements or other
“extended coverage” to the Owner’s Title Policy. Purchaser shall pay the cost of the Updated Survey and the
cost of and any of all inspections or tests undertaken by Purchaser. Purchaser shall pay all costs associated with the assignment
of the License Agreement (or issuance of a new license agreement with Licensor), including, without limitation, all application
fees, inspection fees, PIP fees, transfer fees, and all expenses of Licensor, including, without limitation, legal fees and expenses,
incurred in connection therewith, provided, however, that Seller shall pay all fees, costs and expenses under the License Agreement
which have accrued prior to the Closing. Unless the payment of any other cost is specifically provided for in this Agreement,
all other costs shall be apportioned between the parties by the Title Company in the manner customary in the location of the Hotel,
for properties of a similar nature. Except as otherwise provided in Section 9.3, each party shall be responsible for the payment
of its own attorney’s fees incurred in connection with transaction which is the subject of this Agreement.

 

7.6           Revenue
and Expense Allocations. All revenues and expenses with respect to the Property, and applicable to the period of time before
and after Closing, determined in accordance with sound accounting principles consistently applied, shall be allocated between
the Seller and the Purchaser as provided herein. The Seller shall be entitled to all revenue and shall be responsible for all
expenses for the period of time up to but not including the Closing Date, and the Purchaser shall be entitled to all revenue and
shall be responsible for all expenses for the period of time from, after and including the Closing Date provided that the housekeeping
costs (for the Closing Date) and the Final Rooms Revenue shall be shared equally between the Seller and the Purchaser. Such adjustments
shall be shown on the closing statement (with such supporting documentation as the parties hereto may reasonably require being
attached as exhibits to the closing statements) and shall increase or decrease (as the case may be) the cash amount payable by
the Purchaser pursuant to Section 2.2 hereof. All prorations shall be made on the basis of the actual number of days in the year
and month in which the Closing occurs or in the period of computation. Without limiting the generality of the foregoing, the following
items of revenue and expense shall be allocated and prorated at Closing:

 

(a)           Current rents.

 

(b)           Real estate and personal property taxes
(with maximum allowable discounts for early or prompt payment).

 

(c)           Revenue and expenses under the Operating
Agreements, Leased Property Agreements and Off-Site Facility Agreements to be assigned to and assumed by the Purchaser.

 

(d)           Utility charges (including, but not
limited to, charges for phone service, cable television, gas, water, sewer and electricity).

 

    	 

    	 

    

 

(e)            Payments due under any assessments
imposed by private covenant.

 

(f)            Municipal or other governmental improvement
liens and special assessments, which shall be paid by the Seller at Closing where the work has been assessed, and which shall be
assumed by the Purchaser at Closing where the work has not been assessed; provided, however, that if such liens or assessments
are payable in installments, the Seller shall be responsible for the payment of such installments relating to periods prior to
the Closing Date and the Purchaser shall be responsible for the payments of such installments relating to periods on and subsequent
to the Closing Date.

 

(g)           License and permit fees, where transferable.

 

(h)           All other revenues and expenses of
the Property, including, but not limited to, such things as restaurant, bar and meeting room income and expenses and the like.

 

(i)            The Final Room Revenue and housekeeping
costs for the Closing Date (to be apportioned equally between the Seller and the Purchaser).

 

(j)             Such other items as are usually and
customarily prorated between purchasers and sellers of hotel properties in the area where the Property is located.

 

The Seller shall receive a credit for any
prepaid expenses accruing to periods on or after the Closing Date. The Purchaser shall receive a credit against the Purchase Price
for the total of (a) prepaid rents, (b) prepaid room receipts and deposits, function receipts and deposits and other reservation
receipts and deposits, and (c) unforfeited security deposits together with any interest payable to a tenant thereon held by the
Seller under Occupancy Agreements. At 11:59 p.m. the day prior to Closing, Seller shall check-out those hotel guests who are in
occupancy at the Hotel, so as to directly bill and collect all revenues generated prior to the Closing Date, and then immediately
check those hotel guests back into the Hotel so they can be included in the Final Rooms Revenue for the Closing Date. At Closing,
the Seller shall sell to the Purchaser in connection with the Hotel, and Purchaser shall purchase from the Seller at face value
all petty cash funds in connection with the hotel guest operations at the Property, which shall be an amount equal to the total
of all petty cash funds on hand and transferred to the Purchaser. In addition, the Seller shall provide a credit to the Purchaser
in an amount equal to one-half (1/2) of the Final Rooms Revenue from the night prior to the Closing Date. The procedure and method
of making the proration adjustments set forth in this Section 7.6 is attached to this Agreement as Exhibit C.

 

The Purchaser shall receive a credit for
all retail sales (as distinguished from any tax on the sale of any personal property effected pursuant to this Agreement), occupancy
taxes and like impositions up to but not including the date of Closing. Any such taxes applicable to the Final Rooms Revenue shall
be apportioned equally between the Seller and the Purchaser. The Seller shall cooperate reasonably with the Purchaser to permit
the Purchaser to obtain, if desired by the Purchaser, sale and occupancy tax clearance certificates from the State in which the
Real Property is located.

 

    	 

    	 

    

 

Seller
shall be responsible for all wages, salaries, benefits and health and welfare contributions, and other costs of employment
of Hotel Employees relating to the period prior to the Closing Date and Purchaser shall be responsible for all wages,
salaries, benefits and health and welfare contributions, and other costs of employment of Hotel Employees hired by Purchaser
at Closing beginning on the Closing Date and thereafter. All compensation due and payable to Hotel Employees shall be
prorated as of the Closing Date; provided, however, that Seller shall pay an amount equal to one hundred percent (100%) of
all Hotel Employees’ accrued vacation, sick leave and other benefits as of the Closing Date.

 

If accurate allocations cannot be made
at Closing because current bills are not obtainable (as, for example, in the case of utility bills and/or real estate or personal
property taxes), the parties shall allocate such revenue or expenses at Closing on the best available information, subject to adjustment
upon receipt of the final bill or other evidence of the applicable revenue or expense. The obligation to make the adjustment shall
survive the Closing of the transaction contemplated by this Agreement. Any revenue received or expense incurred by the Seller or
by the Purchaser with respect to the Property after the date of Closing shall be promptly allocated in the manner described herein
and the parties shall promptly pay or reimburse any amount due. With respect to any closing statements amounts or issues relating
to prorations that are not agreed upon at Closing, the Seller and the Purchaser shall thereafter work in good faith to resolve
such amounts or issues; provided that if such amounts or issues are not fully agreed upon and paid within one hundred twenty (120)
days after the Closing, then, in such event, such amounts or issues shall be submitted to an independent certified public accountant
with a hospitality practice (reasonably acceptable to the Seller and the Purchaser) for final resolution, and the Seller and the
Purchaser agree to be bound by the determination of such accountant. The costs and expenses incurred in connection with the services
of such accountant shall be borne equally by the Seller and the Purchaser. The provisions of this Section 7.6 shall survive the
Closing.

 

7.7           Safe Deposit
Boxes. On the Closing Date, the Seller shall cause the Manager to make available to the Purchaser at the Hotel all receipts
and agreements in the Manager’s possession relating to all safe deposit boxes in use at the Hotel, other than safes or lockboxes,
if any, located inside individual guest rooms in Hotel. During the Study Period, the Seller and the Purchaser shall mutually agree
upon a procedure to provide notice to each Hotel guest utilizing a safe deposit box on the Closing Date about the sale of the
Property and to cause each such Hotel guest to adhere to the procedure set forth in the notice so that a proper inventory can
be prepared and an orderly transition made. From and after the Closing, the Seller and the Manager shall be relieved of any and
all responsibility in connection with each said box, and the Purchaser shall indemnify, defend and hold the Seller and the Manager
and harmless from and against any claim, liability, cost or expense (including reasonable attorneys’ fees) with respect
to such safety deposit box arising after the Closing. The Seller hereby agrees to hold the Purchaser harmless from any other liability
or claims with respect to such safe deposit boxes arising prior to the Closing Date. The provisions of this Section 7.7 shall
survive the Closing.

 

7.8           Inventory
of Baggage. The representatives of the Seller and/or the Manager, and of the Purchaser shall prepare an inventory of
baggage at the Hotel as of 12:00 noon on the Closing Date (which inventory of baggage shall be binding on all parties
thereto) of (a) all luggage, valises and trunks checked or left in the care of the Hotel by guests then or formerly in the
Hotel, (b) parcels, laundry, valet packages and other property of guests checked or left in the care of the Hotel by guests
then or formerly in the Hotel (excluding, however, property in Hotel safe deposit boxes), (c) all luggage or other property
of guests retained by Seller as security for any unpaid accounts receivable, and (d) all items contained in the Hotel lost
and found. The Purchaser shall be responsible from and after the Closing Date for all baggage and other items listed in such
inventory of baggage, and the Purchaser shall indemnify, defend and hold the Seller and the Manager harmless from and against
any claim liability, cost or expense (including reasonable attorneys’ fees) incurred by the Seller or the Manager or
any Affiliate thereof with respect thereto arising after the Closing Date. The Seller hereby agrees to hold the Purchaser
harmless from any other liability or claims with respect to such inventory of baggage arising prior to the Closing Date. The
provisions of this Section 7.8 shall survive the Closing.

 

    	 

    	 

    

 

7.9           Accounts Receivable. Purchaser
is not purchasing and Seller shall retain at the Closing all of Accounts Receivables, including, without limitation, all Accounts
Receivable for then-resident guests of the Hotel (i.e. the “guest ledger”) and receivables accrued in connection with
hotel reservations, the use of guest rooms, and banquet and meeting room receivables (including any cancellation fees due to Seller
in connection with any of the foregoing), as reflected on the city ledger, guest ledger, or any other receivable ledger. If any
Accounts Receivable are paid to Purchaser after the Closing, Purchaser shall pay to Seller the amounts received by Purchaser within
ten (10) days after receipt of such amounts without any commission or deduction for Purchaser. Nothing herein contained shall be
construed as requiring Purchaser to remit to Seller any funds collected by Purchaser on account of Purchaser’s accounts receivable
generated from Hotel operations after the Closing, even if the person or entity paying same is also indebted to Seller.

 

7.10         Accounts Payable. At Closing,
Purchaser shall receive a proration credit equal to the excess of (i) the aggregate estimated amount of all outstanding accounts
payable for the Hotel as of the Closing Date (“Accounts Payable”) over (ii) Purchaser’s prorated share
of such Accounts Payable under Section 7.6 hereof (and Purchaser shall assume the obligation to satisfy all Accounts Payable for
which it received such a proration credit). Seller will use commercially reasonable efforts to reconcile all Accounts Payable at
Closing. In the event Purchaser receives any invoice, or other demand, by a third party due with respect to the Hotel operations
occurring prior to the Closing Date that was not included on the Preliminary Closing Statement (“Seller Payable”),
Purchaser shall submit such invoice or claim to Seller for payment. Seller shall, at its sole cost and expense, promptly pay in
full, or otherwise settle, any such Seller Payable. In the event that Purchaser receives any subsequent notice that any Seller
Payable has not been paid, Purchaser may pay the same and take a credit for such payment on the Final Closing Statement. Seller
shall indemnify Purchaser and its manager and hold each of them harmless from and against any losses which may be incurred or suffered
by any of them in connection with any Accounts Payable disputed by Seller prior to the Closing and any Seller Payable. Notwithstanding
the foregoing, upon Closing, Purchaser shall assume all obligations of Seller to pay for any items ordered by the Manager for the
Hotel in the ordinary course of business but which are not yet received as of the Closing Date as listed on a purchase order log
prepared by Manager or Seller, which list shall be updated by Manager or Seller immediately prior to Closing and there shall not
be any adjustment to the Purchase Price in connection with Purchaser’s assumption of such liabilities.

 

7.11         [Left Blank Intentionally.]

 

7.12         Property Improvement Plan.
It is contemplated that, as of the Closing Date, the Purchaser shall have received from the Licensor a property improvement plan
(the “Purchaser’s PIP”) with respect to the Hotel. The Purchaser shall be responsible for all actions
and expenses required by the Purchaser’s PIP, except as specifically stated otherwise herein. The provisions of this Section
7.12 shall survive the Closing.

 

    	 

    	 

    

 

ARTICLE VIII

GENERAL PROVISIONS

 

8.1           Fire or Other
Casualty. The Seller agrees to give Purchaser prompt notice of any fire or other casualty to the Property occurring between
the Effective Date and the Closing Date of which the Seller has knowledge. If, prior to Closing, the Property is damaged by fire
or other casualty which is fully insured (without regard to deductibles) and would cost less than Five Hundred Thousand Dollars
($500,000.00) and require less than sixty (60) days to repair, then neither party shall have the right to terminate this Agreement
by reason thereof and the Closing shall take place without abatement of the Purchase Price, but the Seller shall assign to Purchaser
at the Closing all of the Seller’s interest in any insurance proceeds (except use and occupancy insurance, rent loss and
business interruption insurance, and any similar insurance, attributable to the period preceding the Closing Date) that may be
payable to the Seller on account of any such fire or other casualty, to the extent such proceeds have not been previously expended
or are otherwise required to reimburse the Seller for actual expenditures of restoration made prior to the Closing Date, plus
Seller shall credit the amount of any deductibles under any policies related to such proceeds to the Purchase Price together
with any amount not covered by insurance. If any such damage due to fire or other casualty is insured and would cost in excess
of Five Hundred Thousand Dollars ($500,000.00) or require sixty (60) days or more to repair, then Purchaser may terminate this
Agreement by written notice given to the Seller within ten (10) days after the Seller has given Purchaser the notice of damage
or casualty referred to in this Section 8.1, or on the Closing Date, whichever is earlier, in which case the parties hereto shall
be released of all further obligations hereunder with respect to the Property except those which expressly survive a termination
of this Agreement. Should Purchaser elect to proceed to Closing notwithstanding the amount of the insured loss or the time required
for repairs, the Closing shall take place without abatement of the Purchase Price and at Closing the Seller shall assign to Purchaser
the insurance proceeds and grant to Purchaser a credit against the Purchase Price equal to the amount of the applicable deductible
plus any amount not covered by insurance. If, prior to Closing, any Property is damaged by fire or casualty which is uninsured
and would cost Five Hundred Thousand Dollars ($500,000.00) or more to repair, then Purchaser may terminate this Agreement by written
notice given to the Seller within ten (10) days after the Seller has given Purchaser the notice of damage or casualty or on the
Closing Date, whichever is earlier, in which case the parties hereto shall be released of all further obligations hereunder, except
those which expressly survive a termination of this Agreement. If Purchaser does not elect to terminate its obligations under
this Agreement pursuant to the immediately preceding sentence, or if any uninsured fire or casualty would cost less than Five
Hundred Thousand Dollars ($500,000.00) to repair, then the Closing shall take place as provided herein, and the Purchase Price
shall be reduced by the estimated amount to repair such casualty, not to exceed Five Hundred Thousand Dollars ($500,000.00).

 

    	 

    	 

    

 

8.2           Condemnation. After the Effective
Date, the Seller agrees to give Purchaser prompt written notice of any knowledge of or notice of any taking by condemnation of
any part of or rights appurtenant to the Real Property. If taking involves property having a value in excess of Five Hundred Thousand
Dollars ($500,000.00) or will materially interfere with the operation or use of any Hotel which constitutes a part of such Real
Property, Purchaser may terminate this Agreement by written notice to the Seller given within ten (10) days after the Seller has
given Purchaser the notice of taking referred to in this Section 8.2, or on the Closing Date, whichever is earlier. If Purchaser
exercises its option to terminate its obligations to purchase the Property pursuant to this Section 8.2, the parties hereto shall
be released from all further obligations hereunder with respect to the Property, except those which expressly survive a termination
of the Agreement. If Purchaser does not so elect to terminate this Agreement, then the Closing shall take place as provided herein,
and the Seller shall assign to Purchaser at the Closing all of the Seller’s interest in any condemnation award which may
be payable to the Seller on account of any such condemnation and, at Closing, the Seller shall credit to the amount of the Purchase
Price payable by Purchaser the amount, if any, of condemnation proceeds received by the Seller between the Effective Date and Closing
less (a) any amounts reasonably expended by the Seller in collecting such sums and (b) any amounts reasonably used by the Seller
to repair the Property as a result of such condemnation. If, prior to Closing, there shall occur a taking by condemnation of any
part of or rights appurtenant to the Property that involves property having a value of Five Hundred Thousand Dollars ($500,000.00)
or less and does not materially interfere with the operation or use of the Hotel which constitutes a part of the Property, Purchaser
shall not have the right to terminate this Agreement by reason thereof and the Closing shall take place without abatement of the
Purchase Price, but the Seller shall assign to Purchaser at Closing all of the Seller’s interest in any condemnation award
which may be payable to the Seller on account of any such condemnation and, at Closing, the Seller shall credit to the amount of
the Purchase Price payable by Purchaser the amount, if any, of condemnation proceeds received by the Seller between the Effective
Date and Closing less (a) any amounts reasonably expended by the Seller in collecting such sums and (b) any amounts reasonably
used by the Seller to repair the Property as a result of such condemnation. Provided Purchaser has not exercised its right to terminate
this Agreement pursuant to Section 8.2, the Seller shall notify Purchaser in advance regarding any proceeding or negotiation with
respect to the condemnation and Purchaser shall have a reasonable right, at its own cost and expense, to appear and participate
in any such proceeding or negotiation. For purposes of Sections 8.1 and 8.2 if this Agreement, estimates of costs and time required
for restoration or repair shall be made by an architect or engineer, as appropriate, designated by the Seller and reasonably acceptable
to Purchaser.

 

8.3           Broker. Seller and Purchaser
each represents and warrants to the other that it has not employed any real estate sales representatives or brokers regarding the
transaction contemplated by this Agreement other than, in Seller’s case, the engagement of Grandbridge Real Estate Capital
LLC, in respect of which Seller shall be solely responsible for the payment of a brokerage fee pursuant to a separate written agreement.
Seller shall indemnify, defend and hold Purchaser harmless from any commission or fee claimed to be owing due to the acts of Seller.
Purchaser shall indemnify, defend and hold Seller harmless from any commission or fee claimed to be owing due to the acts of Purchaser.
This Section relates solely to the transaction contemplated by this Agreement between Seller and Purchaser and shall not create
any third party right or obligation in favor of either or any broker. The provisions of this Section 8.3 shall survive the Closing
and any termination of this Agreement.

 

    	 

    	 

    

 

ARTICLE IX

DEFAULT; TERMINATION RIGHTS;
INDEMNIFICATIONS

 

9.1           Default by Seller. If the sale
contemplated hereby is not consummated because of a default by Seller in accordance with this Agreement after Purchaser has performed
or is prepared to tender performance of all of its obligations in accordance with this Agreement, then Purchaser, and such default
in not cured within five (5) days of Seller’s receipt of written notice thereof, Purchaser shall, as its sole and exclusive
remedy, elect (a) to terminate this Agreement, in which event the Earnest Money Deposit shall be returned to Purchaser, Seller
shall reimburse Purchaser for its reasonable aggregate out-of-pocket expenses in connection with the proposed purchase of the Property
(not to exceed the sum of Fifty-Five Thousand Dollars ($55,000.00)), and all other rights and obligations of the Seller and Purchaser
hereunder (except those set forth herein which expressly survive a termination of this Agreement) shall terminate immediately;
(b) to waive such matter or condition and proceed to Closing, with no reduction in the Purchase Price, or (c) to pursue the remedy
of specific performance of Seller’s obligations under this Agreement. Purchaser expressly waives any and all other remedies
to which Purchaser would otherwise be entitled at law, in equity, by statute or otherwise. In the event of any termination by Purchaser
pursuant to the provisions of this Section 9.1, the Earnest Money shall be refunded by the Escrow Agent to Purchaser.

 

9.2           Default by Purchaser. If the
sale contemplated hereby is not consummated because of a default by Purchaser in its obligation to purchase the Property in accordance
with this Agreement after Seller has performed or is prepared to tender performance of all of its obligations in accordance with
this Agreement, and such default in not cured within five (5) days of Purchaser’s receipt of written notice thereof, Seller
shall, as its sole and exclusive remedy, be permitted to terminate this Agreement in which event the parties hereto shall be released
from all further obligations hereunder except those which expressly survive a termination of this Agreement. In the event of such
termination, the Seller shall be entitled to receive the Earnest Money from the Escrow Agent as liquidated damages and not as penalty,
in full satisfaction of its claims against Purchaser hereunder; provided, however, that this provision regarding Seller’s
sole remedy shall never be construed to prevent Seller from also enforcing Purchaser’s obligations expressly stated to survive
expiration or termination of this Agreement.

 

9.3           SELLER AND PURCHASER AGREE THAT THE
SELLER’S AND PURCHASER’S DAMAGES, AS THE CASE MAY BE, RESULTING FROM THE OTHER PARTY’S DEFAULT ARE DIFFICULT,
IF NOT IMPOSSIBLE, TO DETERMINE AND THE EARNEST MONEY IS A FAIR ESTIMATE OF THOSE DAMAGES WHICH HAS BEEN AGREED TO IN AN EFFORT
TO CAUSE THE AMOUNT OF SAID DAMAGES TO BE CERTAIN.

 

9.4           Costs and Attorneys’
Fees. In the event of any litigation or dispute between the parties arising out of or in any way connected with this Agreement,
resulting in any litigation, then the prevailing party in such shall be entitled to recover its costs of prosecuting and/or defending
same, including, without limitation, reasonable attorneys’ fees at trial and all appellate levels. The provisions of this
Section 9.3 shall survive the termination of this Agreement.

 

    	 

    	 

    

 

9.5           Limitation of Liability. Notwithstanding
anything herein to the contrary, the liability of each party hereto resulting from the breach or default by such party shall be
limited to direct actual damages incurred by the injured party and each party hereto hereby waives its rights to recover from the
other party consequential, punitive, exemplary, and speculative damages. The provisions of this Section 9.4 shall survive the termination
of this Agreement.

 

9.6           Agreement to
Indemnify.

 

(a)           Notwithstanding any provisions of this
Agreement to the contrary, Seller shall hold harmless, indemnify and defend Purchaser against any and all claims asserted by any
unaffiliated third-party(ies) with respect to obligations, claims, losses, damages, liabilities and expenses (including, without
limitation, reasonable attorneys’ fees and other charges) connected with the ownership or operation of the Hotel and relating
to the period during which Seller owned the Hotel, including, without limitation, actions or claims asserted by such third-party(ies)
relating to damage to property or injury to or death of any person during the period of Seller’s ownership of the Hotel,
or any claims by any such third-party(ies) for any debts or obligations occurring on or about or in connection with the Hotel or
any portion thereof or with respect to the Hotel’s operations at any time during such period.

 

(b)           Notwithstanding anything in this Agreement
to the contrary, Purchaser shall hold harmless, indemnify and defend Seller and Manager against any and all obligations, claims,
losses, damages, liabilities and expenses (including, without limitation, reasonable attorneys’ fees and other charges) connected
with the ownership or operation of the Hotel and relating to the period from or after the Closing Date, including, without limitation,
actions or claims relating to damage to property or injury to or death of any person during the period in which the applicable
Hotel is owned by Purchaser (or Purchaser’s affiliates) or any claims for any debts or obligations occurring on or about
the Hotel or any portion thereof or with respect to the Hotel’s operations at any time during such period. The foregoing
indemnities shall survive the Closing.

 

(c)           Whenever it is provided in this Agreement
that an obligation of one party will be assumed by the other party on or after the Closing, the party so assuming such liability
also shall be deemed to have agreed to indemnify, defend and hold harmless the other party and its successors and assigns, from
and against all claims, losses, damages, liabilities, costs and expenses (including reasonable attorneys’ fees and other
charges) arising from any failure of the assuming party to perform the obligation so assumed after the Closing and from all third
party claims brought against the other party to the extent relating to the period from and after assumption of the liability on
which the claim is based.

 

(d)
          Whenever either party shall learn through the filing of a
claim or the commencement of a proceeding or otherwise of the existence of any liability for which the other party is or may
be responsible under this Agreement, the party learning of such liability shall notify the other party promptly and furnish
such copies of documents (and make originals thereof available) and such other information as such party may have that may be
used or useful in the defense of such claims and shall afford said other party full opportunity to defend the same in the
name of the notifying party and generally shall cooperate with said other party in the defense of any such claim. Upon
receipt of such notice of possible liability, the party obligated to provide indemnity shall have the right to provide a
written notice to the party entitled to indemnity that the indemnifying party elects to assume the defense of such
matter, including, without limitation, the employment of counsel reasonably satisfactory to the indemnified party; whereupon
the indemnifying party shall have the right to prosecute such defense and shall be responsible for the payment of the fees
and disbursements of such counsel; provided, however, if in the reasonable judgment of the indemnified party,
(i) such litigation, action, suit, demand, claim or the resolution thereof, would have a material adverse effect on the
indemnified party or (ii) the indemnifying party shall have a conflict of interest in defending such action on the
indemnified party’s behalf, then at the indemnified party’s election, the indemnified party may defend itself,
and in either of such instances it shall be at the indemnifying party’s expense; provided, however, that
the indemnifying party shall be responsible for the reasonable fees of no more than one counsel in each jurisdiction in each
proceeding. No indemnifying party shall be responsible for any obligation, loss, cost, expense or other liability to the
extent that (a) the party entitled to indemnification failed to provide prompt notice thereof to the indemnifying party and
(b) such obligation, loss, cost, expense or other liability could have been avoided if prompt notice had been given.

 

    	 

    	 

    

 

ARTICLE X

MISCELLANEOUS PROVISIONS

 

10.1        Completeness; Modification.
This Agreement constitutes the entire agreement between the parties hereto with respect to the transactions contemplated hereby
and supersedes all prior discussions, understandings, agreements and negotiations between the parties hereto. This Agreement may
be modified only by a written instrument duly executed by the parties hereto.

 

10.2         Successors and Assigns. This
Agreement shall bind and inure to the benefit of the parties hereto and their permitted respective successors and assigns.

 

10.3         Days. If any action is required
to be performed, or if any notice, consent or other communication is given, on a day that is not a business day, such performance
shall be deemed to be required, and such notice, consent or other communication shall be deemed to be given, on the first business
day following such non-business day. As used herein, “business day” will mean any day other than a Saturday, Sunday
or a legal holiday in the jurisdiction in which the Hotel is located. Unless otherwise specified herein, all references herein
to a “day” or “days” shall refer to calendar days and not business days.

 

10.4          Governing Law. This Agreement
and all documents referred to herein shall be governed by and construed and interpreted in accordance with the laws of the state
in which the Property is located without regard to its principle of conflicts of law.

 

10.5         Counterparts. To facilitate
execution, this Agreement may be executed in as many counterparts as may be required. It shall not be necessary that the signature
on behalf of both parties hereto appear on each counterpart hereof. All counterparts hereto shall collectively constitute a single
agreement. Telecopied signatures or signatures provide by email (PDF file) shall have the same valid and binding effect as original
signatures.

 

10.6
       Severability. If any term, covenant or condition of this Agreement, or the
application thereof to any person or circumstance, shall to any extent be invalid or unenforceable, the remainder of this
Agreement, or the application of such term, covenant or condition to other persons or circumstances, shall not be affected
thereby, and each term, covenant or condition of this Agreement shall be valid and enforceable to the fullest extent
permitted by law.

 

    	 

    	 

    

 

10.7         Costs.
Regardless of whether Closing occurs hereunder, and except as otherwise expressly provided herein, each party hereto shall be
responsible for its own costs in connection with this Agreement and the transactions contemplated hereby, including, without limitation,
fees of attorneys, engineers and accountants.

 

10.8         Notices. All notices, requests,
demands and other communications hereunder shall be in writing and shall be delivered (i) by hand, (ii) sent prepaid for next-day
delivery by Federal Express (or a comparable overnight delivery service), (iii) sent by the United States mail, certified, postage
prepaid, return receipt requested, at the addresses and with such copies as designated below, or (iv) by facsimile or electronic
mail, with written confirmation by a nationally recognized overnight courier sent the same day as the facsimile or email transmission,
in which case notice shall be deemed delivered upon the transmission of such facsimile or email notice. Any notice, request, demand
or other communication delivered or sent in the manner aforesaid may be given by the party required to give such notice, etc.,
or its attorney, and shall be deemed given or made (as the case may be) when actually delivered to or refused by the intended recipient,
except with respect to notices delivered by facsimile or electronic mail, which will be deemed given as set forth in the immediately
preceding sentence.

 

	 	If to Seller:	 	c/o Presidian Hotels and Resorts	 
	 	 	 	9000
Tesoro Drive, Suite 300,	 
	 	 	 	San Antonio, Texas 78217	 
	 	 	 	Attn: Charles Leddy 	 
	 	 	 	Tel: 210.646.8811, ext: 230	 
	 	 	 	Facsimile: 210.646.8814	 
	 	 	 	Email: Charles@Presidian.com	 
	 	 	 	 	 
	 	and	 	c/o Alex. Brown Realty, Inc.	 
	 	 	 	 300 East Lombard Street, Suite 1200 	 
	 	 	 	 Baltimore, Maryland 21202 	 
	 	 	 	Attn: David E. Wolfe and Craig Dranbauer 	 
	 	 	 	Tel: (410) 547-3034	 
	 	 	 	Facsimile: (410) 625-2694	 
	 	 	 	Email: 	david.wolfe@abrealty.com	 
	 	 	 	 	craig.dranbauer@abrealty.com	 

 

    	 

    	 

    

 

	 	 	 	 	 
	 	 If to Purchaser:	 	c/o Moody National Realty Company, LP	 
	 	 	 	6363 Woodway, Suite 110	 
	 	 	 	Houston, Texas 77057	 
	 	 	 	Attn: Brett Moody/ Alex Sims	 
	 	 	 	Telephone: 	(713) 977-7500	 
	 	 	 	Facsimile:	(713) 977-7505	 
	 	 	 	Email:	bmoody@moodynational.com	 
	 	 	 	 	asims@moodynational.com	 
	 	 	 	 	 
	 	with a copy to:	 	Mr. Adam S. Wilk 	 
	 	 	 	Ms. Kasi Moeskau 	 
	 	 	 	 Sneed, Vine & Perry, P.C.	 
	 	 	 	900 Congress, Suite 300	 
	 	 	 	Austin, Texas 78701	 
	 	 	 	Telephone No. (512) 494-3126	 
	 	 	 	E-Mail:	awilk@sneedvine.com/	 
	 	 	 	 	 kmoeskau@sneedvine.com	 

  

	 	If to Escrow Agent/Underwriter:	 	Old Republic National Title Insurance Company 	 
	 	 	 	Attention: Shannon J. Skurner	 
	 	 	 	777 North Post Oak Blvd., Suite 240	 
	 	 	 	Houston, Texas 77056	 
	 	 	 	Telephone No. 888-678-1700	 
	 	 	 	E-mail: sskurner@oldrepublictitle.com	 

 

or to such other address as the intended
recipient may have specified in a notice to the other party. Any party hereto may change its address or designate different or
other persons or entities to receive copies by notifying the other party and Escrow Agent in a manner described in this Section.

 

10.9         Escrow Agent. Escrow Agent
has agreed to act as such for the convenience of the parties without fee or other charges for such services as Escrow Agent. Escrow
Agent shall not be liable: (a) to any of the parties for any act or omission to act except for its own willful misconduct; (b)
for any legal effect, insufficiency, or undesirability or any instrument deposited with or delivered by Escrow Agent or exchanged
by the parties hereunder, whether or not Escrow Agent prepared such instrument; (c) for any loss or impairment of funds that have
been deposited in escrow while those funds are in the course of collection, or while those funds are on deposit in a financial
institution, if such loss or impairment results from the failure, insolvency or suspension of a financial institution; (d) for
the expiration of any time limit or other consequences of delay, unless a properly executed written instruction, accepted by Escrow
Agent, has instructed Escrow Agent to comply with said time limit; (e) for the default, error, action or omission of either party
to the escrow. Escrow Agent, in its capacity as escrow agent, shall be entitled to rely on any document or paper received by it,
believed by such Escrow Agent, in good faith, to be bona fide and genuine. In the event of any dispute as to the disposition of
any monies held in escrow, or of any documents held in escrow, Escrow Agent may, if such Escrow Agent so elects, interplead the
matter by filing an interpleader action in a court of competent jurisdiction in the county or circuit where the Real Property
is located (to the jurisdiction of which both parties do hereby consent), and pay into the registry of the court such monies held
by Escrow Agent, or deposit any such documents with respect to which there is a dispute in the registry of such court, whereupon
such Escrow Agent shall be relieved and released from any further liability as Escrow Agent hereunder. Escrow Agent shall not
be liable for Escrow Agent’s compliance with any legal process, subpoena, writ, order, judgment and decree of any court,
whether issued with or without jurisdiction, and whether or not subsequently vacated, modified, set aside or reversed.

 

    	 

    	 

    

 

10.10       Incorporation
by Reference. All of the exhibits and schedules attached hereto are by this reference incorporated and made a part hereof.

 

10.11       Further Assurances. The Seller
and Purchaser each covenant and agree to sign, execute and deliver, or cause to be signed, executed and delivered, and to do or
make, or cause to be done or made, upon the written request of the other party, any and all agreements, instruments, papers, deeds,
acts or things, supplemental, confirmatory or otherwise, as may be reasonably required by either party hereto for the purpose of
or in connection with consummating the transactions described herein provided that compliance with the provision of this Section
shall not increase the liability of the complying party.

 

10.12       No Partnership. This Agreement
does not and shall not be construed to create a partnership, joint venture or any other relationship between the parties hereto
except the relationship of seller and purchaser specifically established hereby.

 

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

 

10.14       Signatory Exculpation. The
signatory(ies) for the Seller and Purchaser is/are executing this Agreement in his/their capacity as representative of such party
and not individually and, therefore, shall have no personal or individual liability of any kind in connection with this Agreement
and the transactions contemplated by it.

 

10.15       Rules of Construction. The
following rules shall apply to the construction and interpretation of this Agreement:

 

(a)           Singular words shall connote the plural
number as well as the singular and vice versa, and the masculine shall include the feminine and the neuter.

 

(b)           All references herein to particular
articles, sections, subsections, clauses or exhibits are references to articles, sections, subsections, clauses or exhibits of
this Agreement.

 

(c)           The headings contained herein are solely
for convenience of reference and shall not constitute a part of this Agreement nor shall they affect its meaning, construction
or effect.

 

(d)           Each party hereto and its counsel have
reviewed and revised (or requested revisions of) this Agreement and have participated in the preparation of this Agreement, and
therefore any usual rules of construction requiring that ambiguities are to be resolved against a particular party shall not be
applicable in the construction and interpretation of this Agreement or any exhibits hereto.

 

10.16       No Recording. Neither this
Agreement nor any memorandum hereof, or any other instrument intended to give notice hereof (or which actually gives notice hereof)
shall be recorded.

 

    	 

    	 

    

 

10.17       Facsimile Signatures. The
execution of this Agreement and all notices given hereunder and all amendments hereto, may be effected by facsimile signatures,
all of which shall be treated as originals; provided, however, that the party receiving a document with a facsimile signature
may, by notice to the other, require the prompt delivery of an original signature to evidence and confirm the delivery of the
facsimile signature.

 

10.18       Assignment by the Parties.
Neither party shall assign or transfer or permit the assignment or transfer of its rights or obligations under this Agreement without
the prior written consent of the other, any such assignment or transfer without such prior consent being hereby declared to be
null and void; provided, however, that Purchaser shall have the right to either nominate one or more Affiliates to
take title to the Property or to certain components of the Property or to assign this Agreement to one or more Affiliates without
Seller’s consent; provided, however, that in the event of any such assignment, Purchaser shall not be relieved of any duties
and obligations hereunder

 

10.19       Waiver. The excuse or waiver
of the performance by a party of any obligation of the other party under this Agreement shall only be effective if evidenced by
a written statement signed by the party so excusing or waiving. No delay in exercising any right or remedy shall constitute a
waiver thereof, and no waiver by Seller or Purchaser of the breach of any covenant of this Agreement shall be construed as a waiver
of any preceding or succeeding breach of the same or any other covenant or condition of this Agreement.

 

10.20       Exclusivity. After the Effective
Date, Seller and its respective agents, representatives and employees shall not market the Property or enter into any “back-up”
contracts for the sale of the Property until such time as this Agreement is terminated.

 

10.21       Section 1031 Exchange. Either
party may consummate the purchase or sale of the Property as part of a so-called like kind exchange (an “Exchange”)
pursuant to Section 1031 of the Internal Revenue Code of 1986, as amended (the “Code”), provided that (i) the
Closing shall not be delayed or affected by reason of an Exchange nor shall the consummation or accomplishment of any Exchange
be a condition precedent or condition subsequent to a party’s obligations under this Agreement; (ii) any party desiring
an Exchange shall effect its Exchange through an assignment of this Agreement, or its rights under this Agreement, to a qualified
intermediary and the other party shall not be required to take an assignment of the purchase agreement for the relinquished or
replacement property or be required to acquire or hold title to any real property for purposes of consummating such Exchange;
and (iii) the party desiring an Exchange shall be responsible for all costs and expenses, including reasonable attorney’s
fees, that would not otherwise have been incurred by Purchaser or Seller had such party not consummated its purchase or sale through
an Exchange. Neither party shall by this agreement or acquiescence to an Exchange desired by the other party (1) have its rights
under this Agreement affected or diminished in any manner or (2) be responsible for compliance with or be deemed to have warranted
to the other party that such party’s Exchange in fact complies with Section 1031 of the Code. In connection with such cooperation,
Seller agrees, upon request of Purchaser to “direct deed” for actual interests in the property to designees of Purchaser.

 

    	 

    	 

    

 

10.22       Public
Announcements. Except as otherwise expressly provided herein, neither Seller nor Purchaser shall make any public
statement or issue any press release prior to the Closing with respect to this Agreement or the transactions contemplated
hereby without the prior written consent of the other party. Seller hereby expressly acknowledges that Purchaser is a
wholly-owned subsidiary of a publicly-traded company and that Seller is aware and will advise its owners, employees and
agents that federal and state securities laws prohibit any person who has material, non-public information about a company
from purchasing or selling securities of such a company or from communicating such information to any other person under
circumstances in which it is reasonably foreseeable that such person is likely to purchase or sell such securities. Seller
further agrees that Purchaser shall have the right to disclose the fact that it is contemplating the purchase of the Property
and such other details of the transaction to the extent Purchaser reasonably deems necessary to comply with applicable
federal or state securities laws, rules or regulations.

 

IN WITNESS WHEREOF, the Seller and Purchaser
have caused this Agreement to be executed in their names by their respective duly authorized representatives.

 

	 	SELLER:
	 	 
	 	AUSTIN HWS, LP, a Texas limited partnership
	 	 
	 	By:	AUHWS Management, LLC
	 	 	a Texas limited liability company,
	 	 	 its
        Co-General Partner
	 	 
	 	 	By:	 
	 	 	 	H. Drake Leddy, Manager
	 	 
	 	By:	Austin HWS GP, Inc., a Delaware
	 	 	corporation, its Co-General Partner
	 	 
	 	 	By:	 
	 	 
	 	PURCHASER:
	 	 
	 	MOODY NATIONAL REIT I INC., a Maryland corporation
	 	 
	 	By:	 
	 	 	Brett Moody, President

 

    	 

    	 

    

  

ACKNOWLEDGEMENT OF RECEIPT OF AGREEMENT
OF PURCHASE AND SALE

 

The undersigned Escrow Agent hereby acknowledges
receipt of a copy of this Agreement, and agrees to hold and dispose of the Earnest Money, when paid, in accordance with the provisions
thereof, and to acknowledge its approval of the form and substance of the title affidavit attached to the Agreement as Exhibit
L.

 

	 	OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
	 	 	 
	 	By:	
	 	Printed:	 
	 	Title:	 
	 	Received: May ______ , 2015 (“Effective Date”)

 

    	 

    	 

    

 

EXHIBIT A

 

LEGAL DESCRIPTION

 

Lot 2, Block A, RESUBDIVISION OF LOT B-1
OF LOTS B-1 AND B-2 CROW INDUSTRIAL PARK SOUTH SECTION NINE, an Addition in Travis County, Texas, according to the map or plat
thereof recorded in Plat Book 96, Pages 149-150 of the Plat Records of Travis County Texas.

 

    	 

    	 

    

 

EXHIBIT B

 

SUBMISSION MATTERS

 

1.     All architectural plans, site plans,
existing surveys and other specifications for the Property.

 

2.     FF&E inventory schedule.

 

3.     2015 budgets (operating, capital, etc.),
detailed financial statements for the previous four (4) years, Accounts Receivables schedule and aging.

 

4.     A true, correct and complete list of
the Hotel’s occupancy, ADR, and levels for the prior twelve (36) months.

 

5.     Advance Bookings for the Property, together
with a list of the top ten (10) accounts with rates and room nights for the last three (3) years.

 

6.     The previous three (3) years Smith Travel
Research Reports and quality assurance reports.

 

7.     A current rent roll (if applicable).

 

8.     Complete and legible copies of all Hotel
Agreements in effect as of the date of this Agreement, together with complete and legible copies of all modifications, supplements
and amendments thereto.

 

9.     License Agreement and Existing PIPS.

 

10.   All Authorizations including, without
limitation, all certificates of occupancy, permits, authorizations, approvals and licenses issued by Governmental Authorities having
jurisdiction over the Property and copies of all certificates issued by the local board of fire underwriters (or other body exercising
similar functions) relating to the Property, as well as fire, safety, elevator notices/reports.

 

11.   All Warranties and Guaranties.

 

12.   All Employment Agreements and pertinent
employee information.

 

13.   Environmental studies and notices of
violations or alleged violations that remain uncured to and from any Governmental Authority, and the existing owner’s policy
of title insurance and exception documents.

 

14.   Any soil tests or other environmental
test, audits or reports related to the Property prepared for the Seller.

 

15.   Any parking, structural, mechanical
or other engineering reports and construction documents prepared for the Seller related to the Property.

 

16.   Real estate and personal property tax
statements with respect to the Property for the year of Closing (if received by the Seller) and for the three (3) years preceding
the year of Closing together with assessment bills.

 

 

 

EXHIBIT “B”

    	1

    	 

    

 

17.   All leasing or other commission agreements
with respect to the Property.

 

18.   Three (3) years insurance claims history;
pending, threatened or previously initiated and disposed of litigation.

 

19.   A schedule of insurance covering the
Property setting forth the name of the carrier, the type of policy, the policy number, the policy term and the annual premium,
along with copies of all such insurance policies.

 

20.   Copies of any and all utility bills
for the Property for the prior twelve (12) months.

 

21.   A list of the Seller’s bank statements
for the prior twelve (12) months.

 

 

 

 

 

 

EXHIBIT “B”

 

    	2

    	 

    

 

EXHIBIT C

 

PROCEDURE AND METHOD OF PRORATION

AND
OTHER ADJUSTMENTS

 

Prior to the Closing, the Seller and Purchaser
shall jointly prepare a proposed closing statement containing the parties’ reasonable estimate of the items requiring proration
and adjustment under Section 7.6 and other applicable Sections of this Agreement (the “Preliminary Closing Statement”).
Subsequent to the Closing the parties shall jointly prepare a final closing statement (the “Final Closing Statement”)
showing final adjustments and resulting payments between the parties (“true-ups”), which shall be made in cash or immediately
available funds as soon as practical, but not later than one hundred twenty (120) days following the Closing Date.

 

 

 

 

 

 

EXHIBIT “C”

 

    	 

    	 

    

 

EXHIBIT D

 

ASSIGNMENT AND ASSUMPTION AGREEMENT

 

THIS ASSIGNMENT AND
ASSUMPTION OF AGREEMENTS (this “Assignment”) is made as of _____ , 2015 (the “Effective Date”),
by and between ________ (“Assignor”) and _________ (“Assignee”).

 

WHEREAS,
Seller and Purchaser are parties to that certain Agreement of Purchase and Sale dated as of _______ (as amended, modified
and supplemented, the “Agreement”) for the purchase and sale of the land and the improvements as more
particularly described in the Agreement (“Property”) and the related personal property. All capitalized
terms in this Assignment not otherwise defined herein have the same meaning ascribed in the Agreement; and

 

WHEREAS, in connection with the sale of
the Property, Assignor desires to assign, and Assignee desires to assume, all of Assignor’s right, title, interest and obligations,
if any, in all currently effective Hotel Agreements related to the Property.

 

NOW THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, and intending to be bound, the parties agree as follows:

 

1.     As of the Effective Date, Assignor does
hereby assign and convey to Assignee, its successors and assigns, all of the right, title and interest of Assignor, and of any
Named Party (as defined below), in and to the Hotel Agreements and related unforfeited security deposits, and Assignee does hereby
assume such right, title and interest in and to the Hotel Agreements and related unforfeited security deposits (excluding any Liability
arising prior to the Effective Date). For purposes hereof, “Named Party” shall mean any person or entity that has executed
as agent or under apparent authority, on behalf of Assignor or its managing agent, any of the Hotel Agreements.

 

2.     Assignor agrees to indemnify and save
harmless Assignee from any loss or damage, including court costs and reasonable attorneys’ fees, actually incurred relating
to any default or other liabilities of Assignor relating to the Hotel Agreements occurring prior to the Effective Date. Assignee
agrees to indemnify and hold harmless Assignor from any loss or damage, including court costs and reasonable attorneys’ fees,
actually incurred relating to any default or other liabilities of Assignee relating to the Hotel Agreements occurring from and
subsequent to the Effective Date but not of the nature of a continuing default or breach under the Hotel Agreements which predates
the Effective Date.

 

3.     This Assignment and the provisions herein
contained shall be binding upon and inure to the benefit of Assignee and Assignor and their respective successors and assigns.

 

4.     This Assignment may be executed in several
counterparts and all counterparts so executed shall constitute one Assignment, binding on all the parties hereto and thereto, notwithstanding
that all the parties are not signatories to the same counterpart.

 

 

 

 

 

 

EXHIBIT “D”

 

    	1

    	 

    

 

IN WITNESS WHEREOF, Assignor and Assignee
have executed and delivered this Assignment the day and year first above written.

	 	ASSIGNOR:
	 	 
	 	ASSIGNEE:

 

 

 

 

 

 

EXHIBIT “D”

 

    	2

    	 

    

 

EXHIBIT E

 

BILL OF SALE AND GENERAL ASSIGNMENT

 

THIS BILL OF
SALE AND GENERAL ASSIGNMENT (this “Bill of Sale”) is made as of _____ , 2015, by and between ________
(collectively, “Assignor”) and _________ (“Purchaser”).

 

WHEREAS,
Assignor and Assignee are parties to that certain Agreement of Purchase and Sale dated as of ______ ,
(“Agreement”) for the purchase and sale of real property for the purchase and sale of the land and the
improvements as more particularly described in the Agreement (“Property”) and the related personal
property. Capitalized terms used, but not defined herein, shall have the meaning ascribed to such term in the Agreement.

 

NOW THEREFORE,
for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be
legally bound, the parties agree as follows:

 

Assignor has
GRANTED, CONVEYED, SOLD, TRANSFERRED, SET-OVER, and DELIVERED, and by these presents does hereby GRANT, CONVEY, SELL,
TRANSFER, SET-OVER, and DELIVER unto Assignee, all of Assignor’s right, title and interest (if any), in and to all
items personal property of every kind and nature located on, attached to or used in the operation of the Property, including,
but not limited to, Assignor’s rights and interest, if any, in and to: (a) all Tangible Personal Property; (b) all
Intangible Personal Property; (c) Warranties and Guaranties; and (d) Advanced Bookings.

 

[AS-IS provisions from Section 2.1 of
the Agreement to be inserted.]

 

This Bill of Sale and the provisions herein
contained shall be binding upon and inure to the benefit of Purchaser and Seller and their respective successors and assigns.

 

This Bill of Sale may be executed in several
counterparts and all counterparts so executed shall constitute one Assignment, binding on all the parties hereto and thereto, notwithstanding
that all the parties are not signatories to the same counterpart.

 

[Signature page follows.]

 

 

 

EXHIBIT “E”

 

    	1

    	 

    

 

IN WITNESS WHEREOF, Assignor has executed
and delivered this Bill of Sale the day and year first above written.

 

	 	ASSIGNOR:

 

 

 

 

 

 

EXHIBIT “E”

 

    	2

    	 

    

 

EXHIBIT “F”

 

SPECIAL WARRANTY DEED

 

NOTICE OF CONFIDENTIALITY RIGHTS: IF
YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN
INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER’S
LICENSE NUMBER.

 

SPECIAL
WARRANTY DEED

 

	THE STATE OF TEXAS	§	 
	 	§	KNOW ALL PERSONS BY THESE PRESENTS:

	COUNTY OF TRAVIS	§	 

 

THAT,
______________________________ (“Grantor”), for and in consideration of the sum of Ten and No/100 Dollars
($10.00) cash in hand paid by ________________ (“Grantee”), whose address is ______________________ , and
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by Grantor, has GRANTED,
BARGAINED, SOLD, and CONVEYED, and by these presents does GRANT, BARGAIN, SELL, and CONVEY unto Grantee, that certain tract
of real property situated in Harris County, Texas, and described in Exhibit “A” attached hereto and made a
part hereof for all purposes, together with all and singular the rights, privileges, hereditaments, and appurtenances
pertaining to such real property, including any and all improvements and fixtures currently attached to and located thereon
(the “Property”).

 

The conveyance of the Property is being
made by Grantor and accepted by Grantee subject to all matters set forth in Exhibit B, attached hereto and incorporated
herein by reference (collectively, the “Permitted Exceptions”). [The Permitted Title Exceptions, as defined
in the Agreement to be inserted.]

 

TO HAVE AND TO HOLD the Property, together
with, all and singular, the rights and appurtenances thereto in anywise belonging, to Grantee and Grantee’s successors and
assigns forever; Grantor does hereby bind Grantor and Grantor’s heirs, executors, administrators, legal representatives,
successors, and assigns to warrant and forever defend, all and singular, the Property unto the Grantee and Grantee’s successors
and assigns, against every person whomsoever lawfully claiming or to claim the same, or any part thereof, by through or under Grantor,
but not otherwise, subject however, to the Permitted Exceptions.

 

Taxes for the current year have been prorated
as of the date hereof, and Grantee assumes and agrees to pay the same and all charges, ad valorem taxes, and assessments for the
2015 calendar year, later calendar years not yet due and payable, each to the extent attributable to all or part of the Property,
and any taxes or assessments that might become due for prior years resulting from Grantee’s acquisition or change of use
of the Property.

 

 

 

EXHIBIT “G”

 

    	 

    	 

    

 

EXECUTED
to be effective the _____ day of ___________, 2015.

 

	 	 	GRANTOR:	 
	 	 	 	 
	THE STATE OF TEXAS	§	 	 
	 	§	 	 
	COUNTY OF HARRIS

	§	 	 

 

This
instrument was acknowledged before me on _________ , 2015, by _________ , President of ____, known or proved to me on satisfactory
evidence to be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed
the same in the capacity and for the purposes and consideration therein expressed, on behalf of such company.

  

	(S E A L)	 	 
	 	Notary Public, State of Texas	 
	 	 	 
	 	My Commission Expires:	 	 

 

 

 

 

 

 

EXHIBIT “G”

 

    	 

    	 

    

 

EXHIBIT “G”

 

Leased Property
Agreements

 

CIT Finance, LLC – Supplier: Dahill
Industries (Copier Lease)

 

U.S. Bank Equipment Finance (Equipment for MDU)

 

 

 

 

 

 

EXHIBIT “G”

 

    	 

    	 

    

 

EXHIBIT “H”

 

Occupancy Agreements

 

None

 

 

 

 

 

 

EXHIBIT “H”

 

    	 

    	 

    

 

EXHIBIT “I”

 

Off-Site Facility
Agreements

 

None

 

 

 

 

 

 

EXHIBIT “I”

 

    	 

    	 

    

 

EXHIBIT “J”

 

Operating Agreements

 

AAA Official Appointment Agreement

 

Ambius

 

AT&T

 

Dunbar Armored, Inc.

 

Elavon

 

Greater Texas Landscape

 

Hilton

 

Hilton Hotel OnQ

 

Hilton Revenue Management

 

Hotel System Pro

 

MDU Enterprises – dba Bulk TV &
Internet Master Agreement (Hilton)

 

Orkin Pest Control

 

Otis Elevator Company

 

SCTi – Southwest Communications

 

Smith Travel Research

 

Sonifi Solutions, Inc.

 

TelWest/TelePacific

 

Texas Disposal Systems

 

Texas Wired Music, Inc. (Mood)

 

TraveClick, Inc.

 

Tyco/Simplex Grinnell

 

Uniguest

 

USA Today (Part of Hilton’s Negotiated
Contracts for Hilton Properties)

 

 

 

EXHIBIT “J”

 

    	 

    	 

    

  

Exhibit “K”

 

Seller Bring-Down Certificate

 

CLOSING CERTIFICATE

 

AUSTIN HWS,
LP, a Texas limited partnership (“Seller”) hereby certifies to _____________ (as
successor-in-interest to Moody National REIT I, Inc., “Purchaser”) that to Seller’s Knowledge
there is no breach of or untruth, inaccuracy, or failure in any Seller’s representations or warranties set forth in
Article III of that certain Agreement of Purchase and Sale dated as of __________ , by and between Seller and Purchaser (the
“Agreement”) that would reasonably be anticipated to have a Material Adverse Effect and Seller has
performed in all material respects all of its covenants and other obligations under the Agreement as of __________________ ,
2015.

 

Seller is making this certification for
Purchaser’s benefit pursuant to Section 5.1(b) of the Agreement.

 

All capitalized terms not defined in this
Closing Certificate have the same meanings give such terms in the Agreement.

 

    	2

    	 

    

 

Exhibit “L”

 

From of Underwriter’s
Affidavit

 

	Date: _______ , 2015
	 
	Owner
Name
	and
Mailing Address:
	 
	Property:
	      

The undersigned acting as representative
of the Owner on oath swears or affirms the following:

 

	1.	My full legal name is _______________ and
    I am over the age of eighteen years.
	 	 
	2.	To Affiant’s Knowledge
    (as such term is defined below), AUSTIN HWS, LP, a Texas limited partnership (the “Owner”) is the fee simple
    owner of real property commonly known as_________________ [address] and being more particularly described in Tittle Insurance
    Commitment No. ___________ (the “Property”).
	 	 
	3.	To Affiant’s Knowledge, Owner has present possession of all of Property, save and except for any guests currently occupying the hotel situated on the Property operated by Owner, and there are no lessees or tenants in possession, except for the following (insert the word “NONE” if there are no other parties in possession): 
	 	 	 
	 	 	 
	 	 	 

  

Debts, liens, encumbrances:

         

	4.	To Affiant’s Knowledge, there are no liens or encumbrances (Mortgages, Deeds of Trust, Judgments, Tax Liens, Mechanic’s Liens, unpaid property association dues or assessments, etc.) which are not being paid or properly accounted for in the current transaction.
	 	 
	5.	To Affiant’s Knowledge, Owner is not a party to any pending lawsuits in any State or Federal Court other than have been disclosed to Underwriter (defined below) or its Agent in writing, and to Affiant’s Knowledge, Owner has not received notice of any law suit which may be filed against it; nor has it been declared Bankrupt or Insolvent, voluntarily or involuntarily, in any court. 
	 	 
	6.	 To Affiant’s Knowledge, all labor and materials used in construction of improvements, repairs, or modifications to the Property have been paid for, and to Affiant’s Knowledge, there are now no unpaid bills for labor or material against the improvements or property upon which same are situated, and to Affiant’s Knowledge, all sums of money due for building, repairs or modifying the improvements have been fully paid and satisfied.
	 	 
	7.	To Affiant’s Knowledge, all charges for taxes, assessments, improvements, and services furnished by any governmental entity, including but not limited to paving or mowing, have been paid, and to Affiant’s Knowledge, Owner has received no notice from any governmental agency that work is required to be done to the Property which might result in future charges. 

 

Covenants, conditions, contracts, agreements:

 

	8.	To Affiant’s Knowledge, no governmental authority has notified Owner of any violations, abatement notices, or condemnations. 
	 	 
	9.	To Affiant’s Knowledge, Owner has not allowed and knows of no violation of any covenants, conditions or restrictions (subdivision, condominium, or governmental) affecting the Property.

 

    	3

    	 

    

 

	10.	To Affiant’s Knowledge, there are no unrecorded and/or outstanding leases, contracts, options
    or agreements affecting the Property which have not been disclosed to Old Republic National Title Insurance Company
    (hereinafter “Underwriter”) or its Agent in writing.
	 	 
	11.	To Affiant’s Knowledge, there are no outstanding contracts of Sale or other options to purchase the Property other than any Contract which may be the subject of the present transaction. 

 

Taxes, assessments, dues:

 

	12.	Affiant’s Knowledge, all taxes, charges, dues, and other assessments payable in connection with the subject property have been paid through the current date, unless payment has been provided for on the Settlement Statement used in the current transaction. 

 

Unless shown on the survey plat of the Property provided to Underwriter or its Agent:

 

	13.	To Affiant’s Knowledge, none of the improvements to the subject property include a manufactured home, mobile home or house trailer.
	 	 
	14.	To Affiant’s Knowledge, there are no waterways (including ponds, marshland, or streams) located on or adjacent to the property.
	 	 
	15.	To Affiant’s Knowledge, there are no highways, abandoned roads, lanes, bordering or running through the property.
	 	 
	16. 	To Affiant’s Knowledge, there is no cemetery or family burial grounds located on the Property.

 

Other representations: 

 

	17.	To Affiant’s Knowledge, the current transaction is not made for the purpose of hindering, delaying, or defrauding any creditors of the undersigned.
	 	 
	18.	To Affiant’s Knowledge, one has ever questioned or disputed Owner’s ownership of the property.
	 	 
	19.	Old Republic National Title Insurance Company may rely on these statements.
	 	 
	20.	Owner agrees to indemnify and hold Old Republic National Title Insurance Company, harmless from any loss or expense,
including reasonable attorney fees, resulting from materially false or incorrect information in this affidavit.

 

As used herein “Affiant’s
Knowledge” means only those matters as to which the undersigned has actual knowledge, with no investigation, verification
or inquiry having been made, and does not include any imputed, constructive or implied knowledge of any other kind or nature.

 

In no event shall the undersigned have
any personal liability to Underwriter, Agent or any other party for the inaccuracy of any of the representations or covenants contained
herein.

 

[Signature Block and Acknowledgment
to be inserted.]

 

4Moody
National REIT I, Inc. POS AM

EXHIBIT
10.119

 

AGREEMENT OF PURCHASE AND SALE

 

THIS AGREEMENT OF PURCHASE AND SALE
(this “Agreement’”) is made as of the Effective Date, by and between MOODY NATIONAL CEDAR NEWARK
HOLDING, LLC, a Delaware limited liability company (“Fee Owner”), MOODY NATIONAL TPS NEWARK MT,
LLC, a Delaware limited liability company (“Moody MT”; Fee Owner and Moody MT collectively referred to
herein as “Seller”), and HOLIDAY GARDEN SF CORP., a California corporation (the
“Purchaser”).

 

RECITATIONS:

 

A.        Fee Owner is the owner of that certain
tract of land more particularly described on Exhibit A attached hereto and made a part hereof, and the improvements situated
thereon, commonly known as the “TownePlace Suites Newark” (the “Hotel”).

 

B.        Moody MT leases the Hotel from the Fee
Owner and is the owner of all personal property used in connection with the operation of the Hotel.

 

C.        Purchaser desires to purchase the above-described
property from Seller, and Seller desires to sell the above-described property to Purchaser, for the Purchase Price (as defined
below) and upon the terms and conditions hereinafter set forth.

 

NOW, THEREFORE, in consideration
of premises and in consideration of the mutual covenants, promises and undertakings of the parties hereinafter set forth, and for
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties, it is agreed:

 

ARTICLE I

DEFINITIONS

 

The following terms shall have the indicated
meanings:

 

1.1       “Accounts Receivable”
shall mean all accounts receivable of the Hotel which are shown on city ledger or other applicable the records of the Hotel.

 

1.2       “Advance Bookings”
shall mean reservations and agreements made or entered into by Moody MT or Manager prior to Closing and assumed by Purchaser for
Hotel rooms or meeting rooms to be utilized after Closing, or for catering services or other Hotel services to be provided after
Closing, in the ordinary course of business.

 

1.3       “Affiliate” shall
mean any Person that is directly or indirectly (through one or more intermediaries) controlled by, under common control with, or
controlling another Person. For the purposes of this definition, “control” shall mean the possession, directly
or indirectly, of the power to direct or cause the direction of the management and policies of any Person or the power to veto
major policy decisions of any Person, whether through the ownership of voting securities, by contract or otherwise.

 

1.4        “Agreement” shall
have the meaning ascribed to such term in the Preamble.

 

    	 

    	 

    

 

1.5       “Applicable Laws”
shall mean any applicable building, zoning, subdivision, environmental, health, safety or other governmental laws, statutes, ordinances,
resolutions, rules, codes, regulations, orders or determinations of any Governmental Authority or of any insurance boards of underwriters
(or other body exercising similar functions), or any restrictive covenants or deed restrictions affecting the Property or the ownership,
operation, use, maintenance or condition thereof.

 

1.6       “Assignment and Assumption
Agreement” shall mean an assignment and assumption agreement whereby Moody MT assigns and Purchaser assumes all of Moody
MT’s rights, title and interest in and to the Hotel Agreements.

 

1.7       “Authorizations”
shall mean all certificates of occupancy, licenses, permits, authorizations and approvals required by any governmental or quasi-governmental
agency, body, department, commission, board, bureau, instrumentality or officer, or otherwise appropriate with respect to the construction,
ownership, operation, leasing, maintenance, or use of the Property or any part thereof.

 

1.8       “Bill of Sale and General
Assignment” shall mean a bill of sale and general assignment between Moody MT and Purchaser, conveying title to the Personal
Property (other than Leased Property) from Moody MT to Purchaser, together with any Warranties and Guaranties related thereto and
the Advanced Bookings.

 

1.9       “Closing” shall
mean the consummation of the sale and purchase of the Property pursuant to this Agreement.

 

1.10     “Closing Date”
shall mean the date on which the Closing shall occur, but in no event later than twenty-one (21) days following the expiration
of the Study Period.

 

1.11     “Closing Documents”
shall mean the documents defined as such in Article VI.

 

1.12     “Deed” shall mean
a grant deed, conveying fee title to the Real Property from the Fee Owner to Purchaser, subject to the Permitted Title Exceptions.

 

1.13     “Earnest Money”
shall have the meaning ascribed to such term in Section 2.3.

 

1.14     “Effective Date”
(or other similar phrases such as “date of this Agreement” or “date hereof) shall mean the first
date on which the Escrow Agent shall have acknowledged receipt of this Agreement fully executed by Seller and Purchaser.

 

1.15
    “Escrow Agent” shall mean Chicago Title Company, Attention: Terina J. Kung, 455 Market
Street, Suite 2100, San Francisco, CA 94105; Direct Line: (415) 291-5128; Fax: (415) 896-9423; and Email: kungt@ctt.com.

 

1.16     “First Earnest Money”
shall have the meaning ascribed to such term in Section 2.3.

 

1.17     “Final Rooms Revenue”
shall mean the final night’s room revenue (revenue from rooms occupied as of 12:01 a.m. on the Closing Date, exclusive of
food, beverage, telephone and similar charges which shall be retained by Seller), including any sales taxes, room taxes or other
taxes thereon.

 

1.18     “FIRPTA Certificate”
shall mean the affidavit of Fee Owner under Section 1445 of the Internal Revenue Code, as amended.

 

    	2

    	 

    

 

1.19     “Governmental Authority”
shall mean any federal, state, county, municipal or other government or governmental or quasi-governmental agency, department,
commission, board, bureau, office or instrumentality, foreign or domestic, or any of the them.

 

1.20     “Hotel” shall have
the definition ascribed to such term in the Recitations.

 

1.21     “Hotel Agreements”
shall mean collectively the Operating Agreements, Leased Property Agreements, Off-Site Facility Agreements and the Occupancy Agreements.

 

1.22     “Improvements”
shall mean the Hotel and all other buildings, structures, improvements, and all fixtures, systems, facilities and all other items
of real estate located on the Land.

 

1.23     “Independent Contract Consideration”
shall mean One Hundred and No/100 Dollars ($100.00) of the Earnest Money which shall be paid by the Escrow Agent to Seller in the
event that Purchaser elects to terminate this Agreement.

 

1.24     “Insurance Policies”
shall mean all policies of insurance maintained by or on behalf of Seller pertaining to the Property, its operation, or any part thereof.

 

1.25     “Intangible Personal Property”
shall mean, to the extent assignable, Seller’s right, title and interest in and to all intangible personal property owned
or possessed by Seller and used in connection with the ownership or operation of the Property, including, without limitation, (1)
Authorizations, (2) utility and development rights and privileges, general intangibles, business records, plans and specifications
pertaining to the Real Property and the Personal Property, (3) any unpaid award for taking by condemnation or any damage to the
Land by reason of a change of grade or location of or access to any street or highway, (4) the share of the Final Rooms Revenue
determined under Section 6.6(h) hereof, (5) Advance Bookings, excluding Seller’s cash on hand, in the bank accounts and invested
with financial or other institutions, (6) Hotel Agreements (but only to the extent Purchaser elects to accept an assignment of,
and to assume, the Hotel Agreements, in accordance with the terms of this Agreement), and (7) Warranties and Guaranties.

 

1.26     “Inventory” shall
mean all inventories of food, beverage and consumable items in opened or unopened cases and all in-use reserve stock of linens,
towels, paper goods, soaps, cleaning supplies, office supplies, engineering supplies, maintenance supplies, parts and tools and
other “inventories of merchandise” and “inventories of supplies” as such terms are defined in the Uniform
System of Accounts for Hotels used in connection with the operation and maintenance of the Hotel.

 

1.27     “Knowledge” shall
mean the actual knowledge of Brett C. Moody, without any duty of inquiry or investigation. For the purposes of this definition,
the term “actual knowledge” means, with respect to any person, the conscious awareness of such person at the time in
questions, and expressly excludes any constructive or implied knowledge of such person.

 

1.28     “Land” shall mean
that certain parcel of real estate described on Exhibit A hereof, together with all rights, titles, benefits, easements,
privileges, remainders, tenements, hereditaments, interests, reversions and appurtenances thereunto belonging or in any way appertaining,
and all of the estate, right, title, interest, claim or demand whatsoever of Seller therein, in and to adjacent strips and gores,
if any, between the Land and abutting properties, and in and to adjacent streets, highways, roads, alleys or rights-of-way, and
the beds thereof, either at law or in equity, in possession or expectancy, now or hereafter acquired.

 

    	3

    	 

    

 

1.29     “Leased Property”
shall mean all leased items of Tangible Personal Property, including items subject to any capital lease, operating lease, financing
lease, or any similar agreement.

 

1.30     “Leased Property Agreements”
shall mean all lease agreements pertaining to the Leased Property (if any).

 

1.31     “License Agreement”
shall mean the license or franchise agreement from Licensor with respect to the Hotel.

 

1.32     “Licensor” shall
mean MIF, L.L.C., a Delaware limited liability company.

 

1.33     “Management Agreement”
shall mean the management agreement between Seller and the Manager for the management or operation of the Hotel.

 

1.34     “Manager” shall
mean Moody National Hospitality Management, LLC, a Texas limited liability company.

 

1.35     “Occupancy Agreements”
shall mean all leases, concession or occupancy agreements in effect with respect to the Real Property under which any tenants (other
than Hotel guests) or concessionaires have the right to occupy space upon the Real Property.

 

1.36     “Off-Site Facility Agreements”
shall mean any leases, contracts and agreements, if any, pertaining to facilities not located on the Property but which are required
and presently used for the operation of the Hotel including, without limitation, use agreements for local golf courses, and parking
or garage contracts or leases.

 

1.37     “Operating Agreements”
shall mean all service, supply, maintenance and repair, and other similar contracts in effect with respect to the Property (other
than the Occupancy Agreements, Leased Property Agreements, Management Agreement, Off-Site Facility Agreements and the Employee
Agreements) related to construction, operation, or maintenance of the Property and the business conducted thereon.

 

1.38     “Owner’s Title Policy”
shall mean an owner’s policy of title insurance issued to Purchaser by the Title Company, pursuant to which the Title Company
(or any applicable underwriter) insures Purchaser’s ownership of fee simple title to the Real Property, subject only to Permitted
Title Exceptions.

 

1.39     “Permitted Title Exceptions”
shall mean those exceptions to title to the Real Property that are satisfactory or deemed satisfactory to Purchaser as determined
pursuant to Section 2.4(e) hereof.

 

1.40     “Person” shall
mean an individual, a partnership, a limited liability company, a corporation, an association, a joint stock company, a trust,
a joint venture, an unincorporated organization, or a Governmental Authority.

 

1.41     “Personal Property”
shall mean collectively the Tangible Personal Property and the Intangible Personal Property.

 

1.42     “Property” shall
mean collectively the Real Property and Personal Property.

 

1.43     “Purchase Price”
shall mean the amount of TWENTY FOUR MILLION FIVE HUNDRED THOUSAND AND NO/DOLLARS ($24,500,000.00).

 

    	4

    	 

    

 

1.44    “Purchaser Parties”
shall mean Purchaser’s directors, officers, lenders, employees, agents, counsel, consultants or representatives.

 

1.45     “Purchaser’s Objections”
shall mean the objections defined as such in Section 2.4(e).

 

1.46     “Real Property”
shall mean the Land and the Improvements.

 

1.47     “Second Earnest Money”
shall have the meaning ascribed to such term in Section 2.3.

 

1.48     “Seller’s Response”
shall have the meaning ascribed to such term in Section 2.4(e).

 

1.49     “Seller’s Response
Period” shall have the meaning ascribed to such term in Section 2.4(e).

 

1.50     “Study Period”
shall mean the period ending at 5:00 p.m. Pacific Time on the date which is thirty (30) days from the Effective Date. Except as
expressly noted herein to the contrary, times referred to in this Agreement shall mean the times as in effect, from time to time,
in San Francisco, California.

 

1.51     “Submission Matters”
shall mean the definition ascribed to such term in Section 2.4(b) hereof.

 

1.52     “Tangible Personal Property”
shall mean all of Seller’s right, title and interest in and to all tangible personal property owned or possessed by Seller
and used in connection with the ownership or operation of the Property, including, without limitation, (1) all furniture, fixtures,
equipment, machinery, (2) Inventory, (3) all vehicles used in operation of Property and the Hotel, and (5) other tangible personal
property of every kind and nature (which does not include cash-on-hand and petty cash) located at the Hotel and owned or leased
by Moody MT, including, without limitation, Moody MT’s interest as lessee with respect to any such leased Tangible Personal
Property (but only to the extent Purchaser elects to accept an assignment of, and to assume, the Leased Property Agreements, in
accordance with the terms of this Agreement).

 

1.53     “Title Commitment”
shall mean the title commitment and exception documents defined as such in Section 2.4(e).

 

1.54     “Title Company”
shall mean Chicago Title Company.

 

1.55     “Warranties and Guaranties”
shall mean, to the extent assignable, all of Seller’s interest in any existing warranties and guaranties relating to the
development, construction, ownership and operation of the Improvements, the Tangible Personal Property, the Hotel or any part thereof.

 

ARTICLE
II

PURCHASE
AND SALE; DEPOSIT; PAYMENT OF

PURCHASE PRICE; STUDY PERIOD

 

2.1       Purchase and Sale. Seller agrees
to sell and Purchaser agrees to purchase the Property for the Purchase Price and in accordance with and subject to the other terms
and conditions set forth herein.

 

2.2
      Payment of Purchase Price. Purchaser shall pay the Purchase Price, as adjusted in
the manner specified in Article VI and as set forth below, to Seller (or other party designated by Seller) at Closing by
making a wire transfer of immediately available federal funds to the account of Seller (or other party designated by Seller).
Such wire transfer shall be sent by Purchaser to the Escrow Agent for the account of Seller no later than 1:00 p.m. Pacific
Time on the Closing Date.

 

    	5

    	 

    

 

2.3       Earnest
Money. Within two (2) business days following the Effective Date, Purchaser will deliver to the Escrow Agent the sum of SEVEN
HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS ($750,000.00) (the “First Earnest Money”). Within two (2) business
days following the expiration of the Study Period, assuming Purchaser has not previously elected to terminate this Agreement,
Purchaser shall deliver to the Escrow Agent the additional sum of FIVE HUNDRED THOUSAND AND NO/100 DOLLARS ($500,000.00) (the
“Second Earnest Money”‘) (the First Earnest Money and the Second Earnest Money, if any, and all interest
earned thereon are hereinafter collectively referred to as the “Earnest Money”). If Purchaser fails to deliver
the Second Earnest Money within such two (2) business day period, then Seller shall have the right (exercisable in its sole discretion)
to terminate this Agreement by delivery of written notice to Purchaser giving Purchaser three (3) business days after Purchaser’s
receipt of such notice to deliver the Second Earnest Money to Escrow Agent. If no such termination notice is given by Seller as
herein provided, then the Agreement shall continue in full force and effect in accordance with its terms. If Seller provides the
termination notice to Purchaser and Purchaser fails to deliver the Second Earnest Money to Escrow Agent within three (3) business
days after Purchaser’s receipt of Seller’s notice, the Seller and Purchaser each shall promptly instruct Escrow Agent
to pay the First Earnest Money to Seller and, except under those provisions of the Agreement that by their express terms survive
the termination of the Agreement, shall have no further rights or obligations under this Agreement. The Earnest Money shall be
invested by the Escrow Agent in short-term interest bearing accounts at banks or other financial institutions, which accounts
must be insured by the Federal Deposit Insurance Corporation. All interest earned on such deposits shall belong to the party (as
between Seller and Purchaser) who is entitled to receive the Earnest Money under the applicable provisions of this Agreement.
In the event the transactions contemplated herein are not closed in accordance with the provisions hereof, the Earnest Money shall
be disbursed to either Seller or Purchaser as provided in this Agreement.

 

2.4       Due Diligence.

 

(a)       Purchaser shall have the right, until
5:00 p.m. the last day of the Study Period, and thereafter if Purchaser does not notify Seller in writing prior to the expiration
of the Study Period that Purchaser has elected to terminate this Agreement, to enter upon the Real Property upon not less than
one (1) business day prior notice to Seller, and to perform at Purchaser’s expense, and subject to terms and conditions set
forth in Section 2.4(d) below, such economic, surveying, engineering, topographic, environmental, marketing and other test, studies
and investigations as Purchaser may deem appropriate. If Purchaser elects in the exercise of Purchaser’s sole, absolute and
unreviewable discretion to purchase the Property, then Purchaser shall prior to the expiration of the Study Period deliver to Seller
written notice (the “Notice to Proceed”‘) of Purchaser’s election to proceed with this transaction
in accordance with and subject to the terms of this Agreement; provided, however, if, prior to the expiration of the Study Period,
Purchaser provides written notice to Seller and Escrow Agent that it has determined in its sole, absolute and unreviewable discretion,
to terminate this Agreement (or if Purchaser fails to provide Seller with the Notice to Proceed, then Purchaser shall be deemed
to have elected to terminate this Agreement) this Agreement shall automatically terminate, and Seller and Purchaser shall be released
from all further liability or obligation hereunder except those which expressly survive a termination of this Agreement. In the
event of such termination, the Earnest Money, less the Independent Contract Consideration, shall be promptly refunded (meaning
within two (2) business days from the date Escrow Agent is informed that Purchaser has elected not to purchase the Property (or
is deemed to have elected not to purchase the Property) by the Escrow Agent to Purchaser.

 

    	6

    	 

    

 

(b)        Promptly following
the Effective Date, Seller shall deliver copies of the following items to Purchaser, to the extent such items are in Seller’s
possession or within Seller’s reasonable control (or, with respect to item number 20 below, cause Manager to deliver to
Purchaser):

 

	 	(1)	Seller’s existing Survey;

 

	 	(2)	Hotel Agreements;

 

	 	(3)	Financials for the previous twenty-four (24) months;

 

	 	(4)	Occupancy, ADR and RevPar for previous twenty-four (24) months;

 

	 	(5)	Current STR Report;

 

	 	(6)	Advanced Bookings;

 

	 	(7)	Real Estate Tax Bills for current year and previous two (2) years;

 

	 	(8)	Personal Property Tax Bills for current year and previous two (2) years;

 

	 	(9)	“As-is” built drawings relating to the Improvements;

 

	 	(10)	Seller’s policy of title insurance;

 

	 	(11)	Environmental site assessment reports (Phase I and Phase II);

 

	 	(12)	Property Condition Reports, including, but not limited to, Americans with Disabilities Act surveys and studies;

 

	 	(13)	A Title Commitment or preliminary title report dated not more than thirty (30) days prior to the Effective Date;

 

	 	(14)	Notices of violation from any governmental agency;

 

	 	(15)	Copies of all insurance coverage certificates and loss runs relating to the Hotel;

 

	 	(16)	Any and all structural studies of the Hotel including, but not limited to, seismic studies;

 

	 	(17)	All geological/soils reports or studies with respect to the land on which the Hotel is situated and the surrounding premises;

 

	 	(18)	All expert and/or consultant reports relating to the presence of radon or methane gas or other gases emanating from the land on
which the Hotel is situated;

 

	 	(19)	Any collective bargaining or other union contracts; and

 

	 	(20)	List of employees employed at the Hotel containing their dates of hire, wages, salaries, benefits, but excluding the names of
such employees, which will be provided to Purchaser upon
the expiration of the Study Period.

 

    	7

    	 

    

 

(c)         If for any reason whatsoever Purchaser
does not purchase the Property, Purchaser shall promptly deliver to Seller, (i) copies of the due diligence materials delivered
to or copied by Purchaser or Purchaser Parties, and (ii) copies of all third-party reports prepared by or for Purchaser or Purchaser
Parties with respect to the Property; provided, however, that Purchaser shall not be obligated to deliver to Seller any materials
of a proprietary nature (such as, for the purposes of example only, any financial forecast or market repositioning plans) prepared
for Purchaser or Purchaser Parties in connection with the Property, and Seller acknowledges that any such materials delivered to
Seller pursuant to the provisions of clause (ii) shall be without cost to Purchaser and without warranty, representation or recourse
whatsoever other than that such materials have been fully paid for and may be delivered to Seller. The terms of this Section 2.4(c)
shall survive the termination of this Agreement.

 

(d)         Purchaser shall indemnify, hold harmless
and defend Seller against any loss, damage, liability or claim for personal injury or property damage and any other loss, damage,
liability, claim or lien to the extent arising from the acts upon the Real Property by Purchaser or Purchaser Parties or any agents,
contractors or employees of Purchaser or Purchaser Parties (for avoidance of doubt, Purchaser shall have no liability for the mere
discovery of pre-existing conditions at the Hotel). Purchaser understands and accepts that any on-site inspections of the Property
shall occur at reasonable times agreed upon by Seller and Purchaser after not less than one (1) business day prior notice to Seller
and shall be conducted so as not to interfere unreasonably with the operation of the Property and the use of the Property by the
tenants and the guests of the Hotel. Seller shall have the right to have a representative present during any such inspections.
If Purchaser desires to do any invasive testing at the Property, Purchaser shall do so only after obtaining the prior written consent
of Seller, which approval may be subject to such terms and conditions as may be imposed by Seller. Purchaser shall not permit any
liens to attach to the Property by reason of such inspections. Purchaser shall (i) restore the Property, at its own expense, to
substantially the same condition which existed prior to any inspections or other activities of Purchaser thereon; and (ii) be responsible
for and pay any and all liens by contractors, subcontractors, materialmen, or laborers performing the inspections or any work for
Purchaser or Purchaser Parties on or related to the Property. Purchaser shall procure and continue in force from and after the
date Purchaser first enters the Property, and continuing throughout the term of this Agreement, comprehensive general liability
insurance with a combined single limit of not less than $1,000,000 per occurrence, or commercial general liability insurance, with
limits of not less than $1,000,000 per occurrence and $2,000,000 per event. Seller shall be included and named as an additional
insured under such comprehensive general liability or commercial general liability coverage. Such insurance shall include: (i)
personal injury liability with employee and contractual exclusions removed; and (ii) a waiver of subrogation in favor of Seller
without exception for the negligence of any additional insured. Purchaser will not be permitted to come onto the Property unless
and until Purchaser has provided to Seller a certificate of insurance evidencing such coverage, the additional insured status of
Seller, and such waiver of subrogation. The provisions of this Section 2.4(d) shall survive any termination of this Agreement and
a closing of the transaction contemplated hereby and are not subject to any liquidated damage limitation on remedies, notwithstanding
anything to the contrary in this Agreement.

 

(e)        
Prior to the expiration of the Study Period, Purchaser shall notify Seller in writing which Hotel Agreements that Purchaser
elects to reject and not assume (the “Rejected Contracts”) (however, Purchaser may only elect to reject
and not assume, and/or request Seller to terminate, those Hotel Agreements which may be terminated without payment of any
termination fee, penalty or liquidated damages, unless Purchaser agrees in writing to pay for such termination fee, penalty
or liquidated damages) and which Hotel Agreements Purchaser desires Seller to send notice of termination at the Closing, to
the extent any such Hotel Agreements require written notice in excess of the time between the date on which Purchaser
requests termination and the Closing (the “Post-Closing Termination Contracts”). At Closing, Seller shall
terminate all Rejected Contracts and shall send any notices required in order to terminate any Post-Closing Termination
Contracts. All Contracts other than Rejected Contracts shall be assumed by Purchaser at Closing (the “Assumed
Contracts”). Seller shall use commercially reasonable efforts to, at or prior to Closing, obtain any necessary
consents for assignment of Assumed Contracts to Purchaser. Purchaser shall be solely responsible for all transfer or
assignment fees and charges payable to the vendors of the Assumed Contracts under the express terms of the Assumed Contracts.
After the expiration of the Study Period, Seller shall not extend any of the Assumed Contracts and shall not approve any
extension of such Assumed Contracts without Purchaser’s prior written approval (to the extent Seller has
approval rights), which approval shall not be unreasonably withheld, conditioned or delayed.

 

    	8

    	 

    

 

(f)          Promptly following the Effective Date,
Seller shall cause the Title Company to furnish to Purchaser, (i) a title insurance commitment bearing an effective date not earlier
than thirty (30) days prior to the Effective Date issued by the Title Company covering the Real Property, binding the Title Company
to issue the Owner’s Title Policy together with legible copies (to the extent such legible copies are available) of all documents
identified in such title insurance commitment as exceptions to title (collectively, the “Title Commitment”)
with respect to the state of title to the Property. Within ten (10) days following its receipt of the Title Commitment, Purchaser
shall notify Seller of any matters identified in the Title Commitment that Purchaser is unwilling to accept (collectively, the
“Purchaser’s Objections”). Other than as specifically required in this Agreement, Seller shall not be
obligated to incur any expenses or incur any liability to cure any Purchaser’s Objections. Seller may notify Purchaser within
five (5) days after receipt of Purchaser’s Objections (the “Seller’s Response Period”) whether Seller,
in its sole discretion, agrees to cure any of such Purchaser’s Objections (the “Seller’s Response”).
If Seller agrees in Seller’s Response Period to attempt to cure any of such Purchaser’s Objections, Seller shall use
good faith efforts (without the obligation to expend any money or incur any liability) to cure such Purchaser’s Objections
which Seller has agreed to attempt to cure on or before the expiration of the Study Period. If Seller is unable to cure such Purchaser’s
Objections by the expiration of the Study Period, Purchaser shall, in its sole and absolute discretion, elect (1) to waive such
Purchaser’s Objections without any abatement in the Purchase Price and proceed to close or (2) to terminate this Agreement
in which case the parties hereto shall be released from all further obligations hereunder, except those which expressly survive
a termination of this Agreement. If Seller does not provide Seller’s Response to Purchaser within Seller’s Response
Period, Seller shall be deemed to have elected not to attempt to cure Purchaser’s Objections. If Seller elects in Seller’s
Response not to attempt to cure all or any number of Purchaser’s Objections or if Seller is deemed to have elected not to
attempt to cure Purchaser’s Objections pursuant to the preceding sentence, upon the expiration of the Study Period, Purchaser
shall elect either to (1) waive any Purchaser’s Objections which Seller has elected or is deemed to have elected not to attempt
to cure without any abatement in the Purchase Price and proceed to close, or (2) terminate this Agreement in which case the parties
hereto shall be released from all further obligations hereunder, except those which expressly survive a termination of this Agreement.
In the event Purchaser does not provide to Seller notice of Purchaser’s election under the preceding sentence, Purchaser
shall be deemed to have elected clause (2) of the preceding sentence. In the event of Purchaser’s termination or deemed termination
pursuant to this Section 2.4(e), the Earnest Money, less the Independent Contract Consideration, shall be refunded by the Escrow
Agent to Purchaser.

 

(g)        
Notwithstanding anything in this Agreement to the contrary, Seller, at Seller’s sole cost and expense, shall remove
from the exceptions contained in the Title Commitment and Purchaser’s Owner’s Title Policy, and Purchaser shall
be deemed to have objected to, any deeds of trust, UCC-1 financing statements and any and all other documents related to
Seller’s financing of the Property, mechanic’s liens, tax liens, judgment liens and any and all other monetary
liens created by Seller. In addition, Seller shall provide to Title Company, the Title Company’s standard form of
Owner’s Affidavit with such modifications as reasonably requested by Seller.

 

    	9

    	 

    

  

(h)         Purchaser shall submit a fully completed
application to Licensor for the issuance of license agreement within three (3) days after the Effective Date.

 

ARTICLE III

SELLER’S REPRESENTATIONS
AND WARRANTIES

 

In order to induce Purchaser to enter into
this Agreement and to purchase the Property, and to pay the Purchase Price therefor and except for and subject to the information
contained in the Submission Matters, Seller hereby makes, to Seller’s Knowledge, the representations and warranties set forth
below. Each such representation shall be materially true and correct on the Effective Date and shall be materially true and correct
on the Closing Date, provided that Seller shall have no liability if, as a result of any changes in facts or circumstances beyond
Seller’s reasonable control, such representations and warranties are not true as of the Closing Date.

 

3.1       Organization and Power. Seller
is a limited liability company duly organized, validly existing and in good standing under the laws of Delaware and has all requisite
power and authority to enter into and perform its obligations hereunder and under any document or instrument required to be executed
and delivered on behalf of Seller hereunder.

 

3.2       Authorization and Execution.
This Agreement (and all documents contemplated hereby) has been duly authorized by all necessary action on the part of Seller,
has been duly executed and delivered by Seller, constitutes the valid and binding agreement of Seller and is enforceable against
Seller in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, moratorium or other similar
laws affecting creditors’ rights generally or by the principles governing the availability of equitable remedies. The Person
executing this Agreement on behalf of Seller, for and on behalf of Seller, has the authority to do so.

 

3.3       Non-contravention. Subject to
any consent to the assignment of any particular Hotel Agreement required by the terms thereof or by Applicable Laws, the execution
and delivery of, and the performance by Seller of its obligations under, this Agreement do not and will not contravene, or constitute
a default under, any provision of any Applicable Law or regulation, Seller’s organizational documents or any agreement, judgment,
injunction, order, decree or other instrument binding upon Seller or to which the Property is subject.

 

3.4       Seller Is Not a “Foreign Person”.
Seller is not a “foreign person” or a “disregarded entity” within the meaning of Section 1445 of the Internal
Revenue Code, as amended (i.e., Seller is not a foreign corporation, foreign partnership, foreign trust, foreign estate or foreign
person as those terms are defined in the Internal Revenue code and regulations promulgated thereunder).

 

3.5       Right to Purchase. Seller has
not granted to any Person other than Purchaser, any right to purchase the Property or any portion thereof or interest therein.

 

3.6       No
Bankruptcy or Dissolution. No “Bankruptcy/Dissolution Event” (as hereinafter defined) has occurred
with respect to Seller. As used herein, a “Bankruptcy/Dissolution Event” means any of the following: (a)
the commencement of a case under Title 11 of the United States Bankruptcy Code, as now constituted or hereafter amended, or
under any other applicable bankruptcy law or other similar law; (b) the appointment of a trustee or receiver of any
substantial property interest; (c) a general assignment for the benefit of creditors; (d) an attachment, execution or other
judicial seizure of a substantial property interest; or (e) a dissolution.

 

    	10

    	 

    

 

3.7       Litigation. Except as disclosed
on Schedule 3.7. there is no pending action, litigation, condemnation or other proceeding against Seller or the Real Property
(other than personal injury matters covered by Seller’s or Manager’s insurance and routine workers compensation claims),
which has been served on Seller, and to Seller’s Knowledge, no litigation has been threatened against Seller or the Real
Property.

 

3.8       Compliance. Except as set forth
in Schedule 3.8, to Seller’s Knowledge, Seller has not received any written notice from any Governmental Authority
having jurisdiction over the Real Property to the effect that the Real Property is currently not in compliance with applicable
laws and ordinances.

 

3.9       Environmental Matters. To Seller’s
Knowledge, the reports described in Schedule 3.9 (the “Environmental Reports”) represent all of the environmental
reports with respect to the Real Property in the possession of Seller or Manager.

 

3.10     Condemnation Actions. As of
the Effective Date, to Seller’s Knowledge, (i) Seller has not received written notice of any pending condemnation actions
with respect to the Real Property or any material part thereof, and (ii) there is no threatened condemnations action with respect
to the Real Property or any material portion thereof.

 

3.11     Hotel Agreements. To Seller’s
Knowledge all of the Hotel Agreements are listed on Schedule 3.11 and (i) are in full force and effect, and (ii) have not
been amended or modified except as described in Schedule 3.11. As of the Effective Date, to Seller’s Knowledge, Seller
has neither given nor received any written notice of any default under any Hotel Agreement which default remains uncured except
as set forth in Schedule 3.11.

 

3.12     Financial Reports. All of the
financial statements delivered to Purchaser by Seller are, to Seller’s Knowledge, true and correct and accurately reflect
the financial performance of the Hotel.

 

3.13     Employees. Seller has no employees
working at the Property and, to Seller’s Knowledge, all of the employees at the Property are employees of Manager. To Seller’s
Knowledge, no union is presently serving as a collective bargaining agent for any employees at the Property.

 

3.14     Personal Property. Seller owns
the Personal Property free and clear of all conditional bills of sale, chattel mortgages, security agreements or financing statements
of other liens or security interests, except for the Permitted Exceptions.

 

3.15     Leased Personal Property. The
only Leased Personal Property located at the Hotel is set forth in Schedule 3.16. All of the Leased Personal Property is
leased by Seller or Manager pursuant to the Leased Property Agreements identified in Schedule 3.11.

 

    	11

    	 

    

 

The
representations and warranties in this Article III shall survive the Closing for a period of one (1) year following the
Closing Date (“Survival Period”). Notwithstanding anything to the contrary contained in this Agreement,
any claim that Purchaser may have during the Survival Period against Seller for any breach of the representations and
warranties contained in this Article III will not be valid or effective, and Sellers shall have no liability with respect
thereto, unless the aggregate of all valid claims exceed $25,000.00 (the “Seller’s Post-Closing Liability
Floor”), in which event the full amount of such claims shall be recoverable. Seller’s liability for damages
resulting from valid claims during the Survival Period shall in no event exceed three percent (3%) of the Purchase Price in
the aggregate (“Seller’s Post-Closing Liability Cap”). In the event Purchaser obtains actual
knowledge on or before Closing but after the Study Period of any material inaccuracy in any of the representations and
warranties contained in this Article III, Purchaser may as Purchaser’s sole and exclusive remedy either: (i) terminate
this Agreement whereupon the Earnest Money less the Independent Contract Consideration shall be refunded to Purchaser, Seller
shall reimburse Purchaser for the costs and expenses incurred by Purchaser in the negotiation of this Agreement and
performance of Purchaser’s due diligence (“Purchaser’s Transaction Costs”), provided,
however, in no event shall Seller’s liability for Purchaser’s Transaction Costs exceed the sum of Fifty Thousand
Dollars ($50,000) (“Purchaser’s Transaction Costs Cap”), and neither party shall have any further
rights or obligations pursuant to this Agreement, other than as set forth herein with respect to rights or obligations that
survive termination; or (ii) waive any and all claims against Seller on account of such inaccuracy and close the transaction.
In the event Purchaser obtains knowledge on or before the expiration of the Study Period of any inaccuracy in any of the
representations and warranties contained in this Article III, and Purchaser does not terminate this Agreement on or before
the expiration of the Study Period, Purchaser shall be deemed to have waived any and all claims against Seller on account of
such inaccuracy (including the right to terminate this Agreement following the expiration of the Study Period). In the event
Purchaser obtains knowledge on or before the expiration of the Study Period of any inaccuracy in any of the representations
and warranties contained in this Article III, and Purchaser elects to terminate this Agreement, then Purchaser may as
Purchaser’s sole and exclusive remedy either: (i) terminate this Agreement whereupon the Earnest Money less the
Independent Contract Consideration shall be refunded to Purchaser (for avoidance of doubt, Seller shall have no obligation to
reimburse Purchaser for Purchaser’s Transaction Costs or for any other costs), and neither party shall have any further
rights or obligations pursuant to this Agreement, other than as set forth herein with respect to rights or obligations that
survive termination; or (ii) waive any and all claims against Seller on account of such inaccuracy and close the transaction.
Seller’s Post-Closing Liability Floor and Post-Closing Liability Cap shall not apply to (i) any intentional
misrepresentation made by Seller, or (ii) Seller’s liability under Section 6.6.

 

ARTICLE IV

PURCHASER’S REPRESENTATIONS
AND WARRANTIES

 

In order to induce Seller to enter into
this Agreement and to sell the Property, Purchaser hereby makes the following representations and warranties as of the date hereof
and as of the Closing Date, each of which is made to Purchaser’s knowledge:

 

4.1       Organization and Power. Purchaser
is a corporation duly organized, validly existing and in good standing under the laws of the State of California and has all requisite
power and authority to enter into and perform its obligations under this Agreement and any document or instrument required to be
executed and delivered on behalf of Purchaser hereunder.

 

4.2       Authorization and Execution.
This Agreement has been duly authorized by all necessary action on the part of Purchaser, has been duly executed and delivered
by Purchaser, constitutes the valid and binding agreement of Purchaser and is enforceable against Purchaser in accordance with
its terms, except as such enforcement may be limited by bankruptcy, insolvency, moratorium or other similar laws affecting creditors’
rights generally or by the principles governing the availability of equitable remedies. The Person executing this Agreement on
behalf of Purchaser has the authority to do so.

 

    	12

    	 

    

 

4.3       Non-contravention.
The execution and delivery of this Agreement and the performance by Purchaser of its obligations hereunder do not and will
not contravene, or constitute a default under, any provisions of Applicable Law or regulation,
Purchaser’s organizational documents, or any agreement, judgment, injunction, order, decree or other instrument binding
upon Purchaser or result in the creation of any lien or other encumbrance on any asset of Purchaser.

 

4.4       Litigation. There is no action,
suit or proceeding, pending or known to be threatened, against or affecting Purchaser in any court or before any arbitrator or
before any Governmental Authority which would materially and adversely affect the ability of Purchaser to perform its obligations
hereunder, or under any document to be delivered pursuant hereto.

 

4.5       OFAC. Purchaser represents and
warrants to Seller that neither Purchaser nor any affiliate of Purchaser is subject to sanctions of the United States government
or in violation of any federal, state, municipal or local laws, statutes, codes, ordinances, orders, decrees, rules or regulations
relating to terrorism or money laundering, including, without limitation, Executive Order No. 13224, 66 Fed. Reg. 49079 (published
September 25, 2001) (the “Terrorism Executive Order”) or is similarly designated under any related enabling
legislation or any other similar Executive Orders (collectively with the Terrorism Executive Order, the “Executive Orders”),
the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Public
Law 107-56, the “Patriot Act”), any sanctions and regulations promulgated under authority granted by the Trading
with the Enemy Act, 50 U.S.C. App. 1-44, as amended from time to time, the International Emergency Economic Powers Act, 50 U.S.C.
§§ 1701-06, as amended from time to time, the Iraqi Sanctions Act, Publ. L. No. 101-513; United Nations Participation
Act, 22 U.S.C. § 287c, as amended from time to time, the International Security and Development Cooperation Act, 22 U.S.C.
§ 2349 aa-9, as amended from time to time, The Cuban Democracy Act, 22 U.S.C. §§ 6001-10, as amended from time to
time, The Cuban Liberty and Democratic Solidarity Act, 18 U.S.C. §§ 2332d and 2339b, as amended from time to time, and
The Foreign Narcotics Kingpin Designation Act, Publ. L. No. 106-120, as amended from time to time.

 

4.6       AS
IS. WHERE IS. PURCHASER EXPRESSLY ACKNOWLEDGES AND AGREES THAT, AS A MATERIAL PART OF THE CONSIDERATION FOR THIS
AGREEMENT, THE PROPERTY IS BEING SOLD TO PURCHASER AND PURCHASER AGREES TO PURCHASE AND ACCEPT THE PROPERTY, AND EACH AND
EVERY PART AND COMPONENT THEREOF, IN AN “AS IS, WHERE IS” CONDITION AS OF THE CLOSING WITH NO REPRESENTATIONS OR
WARRANTIES FROM SELLER, EITHER EXPRESS OR IMPLIED EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT. PURCHASER AGREES THAT
PURCHASER IS NOT RELYING UPON, AND HAS NOT RECEIVED OR BEEN GIVEN, ANY REPRESENTATIONS (EXCEPT AS EXPRESSLY SET FORTH IN THIS
AGREEMENT), STATEMENTS OR WARRANTIES (ORAL OR WRITTEN, IMPLIED OR EXPRESS) OF OR BY ANY OFFICER, EMPLOYEE, AGENT OR
REPRESENTATIVE OF SELLER, OR ANY SALESPERSON OR BROKER (IF ANY) INVOLVED IN THIS TRANSACTION, AS TO THE PROPERTY OR ANY PART
OR COMPONENT THEREOF IN ANY RESPECT, INCLUDING, BUT NOT LIMITED TO, ANY REPRESENTATIONS, STATEMENTS OR WARRANTIES AS TO THE
PHYSICAL OR ENVIRONMENTAL CONDITION OF THE PROPERTY, THE FITNESS OF THE PROPERTY FOR USE AS A HOTEL, THE FINANCIAL
PERFORMANCE OR POTENTIAL OF THE PROPERTY, THE COMPLIANCE OF THE PROPERTY WITH APPLICABLE BUILDING, ZONING, SUBDIVISION,
ENVIRONMENTAL, LIFE SAFETY OR LAND USE LAWS, CODES, ORDINANCES, RULES, ORDERS, OR REGULATIONS, OR THE STATE OF REPAIR OF THE
PROPERTY, AND PURCHASER, FOR ITSELF AND ITS HEIRS, LEGAL REPRESENTATIVES, SUCCESSORS AND ASSIGNS, WAIVES ANY RIGHT TO ASSERT
ANY CLAIM OR DEMAND AGAINST SELLERS AT LAW OR IN EQUITY RELATING TO ANY SUCH MATTER, WHETHER LATENT OR PATENT, DISCLOSED OR
UNDISCLOSED, KNOWN OR UNKNOWN, NOW EXISTING OR HEREAFTER ARISING. EXCEPT FOR ANY TITLE OR SURVEY MATTERS CREATED SOLELY BY
SELLER IN VIOLATION OF THIS AGREEMENT, PURCHASER AGREES THAT IT SHALL HAVE NO RECOURSE WHATSOEVER AGAINST SELLER, AT LAW OR
IN EQUITY, SHOULD THE SURVEY OR THE TITLE INSURANCE COMMITMENTS OR THE TITLE POLICIES FAIL TO DISCLOSE ANY MATTER AFFECTING
THE PROPERTY OR REVEAL ANY SUCH MATTER IN AN INACCURATE, MISLEADING OR INCOMPLETE FASHION OR OTHERWISE BE IN ERROR. PURCHASER
ACKNOWLEDGES THAT IT SHALL REVIEW THE SURVEY AND THE TITLE INSURANCE COMMITMENTS (AS SAME MAY BE MARKED AT CLOSING) AND TO
DISCUSS THEIR CONTENTS WITH THE INDEPENDENT CONTRACTORS WHO PREPARED OR ISSUED EACH OF THEM. PURCHASER ACCORDINGLY AGREES TO
LOOK SOLELY TO THE PREPARER OF THE SURVEY AND THE ISSUER OF THE TITLE INSURANCE COMMITMENTS AND TITLE POLICIES FOR ANY CLAIM
ARISING OUT OF OR IN CONNECTION WITH SUCH INSTRUMENTS AND HEREBY RELEASES SELLERS FROM ANY SUCH CLAIM (EXCEPT FOR ANY
CLAIM THAT SELLERS AGREE TO CURE AS SET FORTH IN THIS AGREEMENT).

 

    	13

    	 

    

 

Purchaser recognizes that the Hotel and
Personal Property are not new and that there exists a possibility that the Property is not in compliance with the requirements
which would be imposed on a newly constructed hotel by presently effective federal, state and local building, plumbing, electrical,
fire, health, handicap, environmental and life safety laws, codes, ordinances, rules, orders and/or regulations (collectively,
the “building codes”). The Hotel and other improvements on the Land may contain substances or materials no longer permitted
to be used in newly constructed buildings including, without limitation, asbestos or other insulation materials, lead or other
paints, wiring, electrical, or plumbing materials and may not contain other materials or equipment required to be installed in
a newly constructed building. Purchaser has had the opportunity, as set forth in Section 2.4, to review the results of such investigations
and inspections of the Property as Purchaser deemed necessary with respect to all such matters. Purchaser agrees to accept and
shall the Property in an “AS-IS, WHERE IS” condition and at Closing to accept and assume the risk of noncompliance
of the Property with all such building codes. Except with respect to those representations set forth in Article III hereof, Purchaser
waives any right to excuse (except as specifically set forth in this Agreement) or delay performance of its obligations under this
Agreement or to assert any claim against Sellers (before or after Closing) arising out of any failure of the Property to comply
with any such building codes.

 

Except with respect to those
representations set forth in Article III, it is specifically understood and agreed by Seller and Purchaser that Seller does
not make, and shall not be deemed to have made, any representation, warranty or covenant with respect to (i) any
Environmental Laws that may affect any of the Property or (ii) the presence or absence of any Hazardous or Toxic Substances
in, on, above, under or about any of the Property (“Environmental Conditions”). From and after Closing,
Purchaser agrees for itself and for its heirs, successors and assigns, to waive all of its rights under this Agreement, if
any, and any Environmental Laws to require Seller to remediate or “clean up” the Property and releases Seller
from any liability of any kind or nature arising with respect to any Environmental Conditions at the Property. As used in
this Agreement, (A) the term “Environmental Laws” means all federal, State and local laws, codes, ordinances,
rules, orders and regulations now or hereafter in effect relating to pollution or the protection of the environment,
including without limitation, all laws, codes, ordinances, rules, orders and regulations governing the generation, use,
collection, treatment, storage, transportation, recovery, removal, discharge, spill or disposal of any or all Hazardous or
Toxic Substances, and (B) the term “Hazardous Substances” or “Toxic Substances” means materials and
substances defined as “hazardous substances”, “hazardous wastes”, “toxic substances” or
“toxic wastes” in (I) the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42
U.S.C. Sections 9601-9675, as amended by the Superfund Amendments and Reauthorization Act of 1988, and any further amendments
thereto and rules, orders and regulations thereunder; (II) the Resource Conservation and Recovery Act of 1976, 42 U.S.C.
Sections 6901-6992, as amended by the Hazardous and Solid Waste Amendments of 1984, and any further amendments thereto and
rules, orders and regulations thereunder; or (III) any other Environmental Laws. Purchaser acknowledges and agrees that: (a)
Purchaser is an experienced and sophisticated owner of real property; (b) Purchaser has expressly negotiated the limitations
of liability contained in this Section; and (c) the limitations contained in this Section are reasonable. Purchaser
acknowledges and agrees that Seller has agreed to enter into this Agreement in consideration for and in reliance upon the
foregoing limitations of liability, and that the consideration under this Agreement is based in part on the limitations of
liability.

 

    	14

    	 

    

 

It is understood and agreed by Sellers
and Purchaser that in the event of any conflict between the terms and provisions of this Section 4.5 and any other term or provision
to this Agreement, the relevant term or provision of this Section 4.5 shall control and govern. The provisions of this Article
IV shall survive Closing.

 

ARTICLE V

CONDITIONS PRECEDENT

 

5.1       As to Purchaser’s Obligations.
Subject to the provisions of Section 8.1, Purchaser’s obligations hereunder are subject to the timely satisfaction of the
following conditions precedent on or before the Closing Date or such earlier date as is set forth below.

 

(a)         Seller’s Deliveries. Seller
shall have delivered to or for the benefit of Purchaser, on or before the Closing Date, all of the documents required of Seller
pursuant to Sections 6.2 and 6.4 hereof.

 

(b)         Representations, Warranties and
Covenants; Obligations of Seller; Certificate. All of Seller’s representations and warranties made in this Agreement
shall be true and correct in all material respects as of the date hereof and as of the Closing Date as if then made; and Seller
shall have performed in all material respects all of its covenants and other obligations under this Agreement. Further, a duly
authorized officer of Seller shall have executed at Closing a “bring down certificate” with respect to the aforesaid
representations and warranties.

 

(c)         Title. Title Company shall unconditionally
be prepared to deliver to Purchaser Owner’s Title Policy (subject to the premiums therefor and delivery of the documents
specified in Section 5.2 below and Purchaser’s authority documents).

 

(d)         License. Licensor shall provide
Purchaser with a new license for a term through March 31, 2030.

 

(e)       
 2014 PIP. Seller shall have completed the 2014 PIP and Licensor shall have provided written documentation that the
2014 PIP has been completed to Licensor’s satisfaction.

 

(f)          2015 PIP. The 2015 PIP either
does not require any work or, if it does, Seller shall either complete the work or provide Purchaser with a credit against the
Purchase Price pursuant to Section 6.11 below.

 

Each of the
conditions contained in this Section are intended for the benefit of Purchaser and may be waived in whole or in part, by
Purchaser. If the conditions precedent set forth above are neither satisfied nor waived by Purchaser by the Closing Date,
Purchaser shall have the right to terminate this Agreement, obtain a refund of the Earnest Money, and Seller and Purchaser
shall be released from all further liability or obligation hereunder except those which expressly survive the termination of
this Agreement; provided however that if Seller is in default hereof at the time of such termination, then Purchaser shall be
entitled to pursue all of its rights and remedies under this Agreement.

 

    	15

    	 

    

 

5.2       As to Seller’s Obligations.
Subject to the provisions of Section 8.2, Seller’s obligations hereunder are subject to the satisfaction of the following
conditions precedent:

 

(a)         Purchaser’s Deliveries.
Purchaser shall have delivered to or for the benefit of Seller, on or before the Closing Date, all of the documents and payments
required of Purchaser pursuant to Sections 6.3 and 6.4 hereof.

 

(b)         Representations, Warranties and
Covenants; Obligations of Purchaser; Certificate. All of Purchaser’s representations and warranties made in this Agreement
shall be true and correct in all material respects as of the date hereof and as of the Closing Date as if then made; and Purchaser
shall have performed in all material respects all of its covenants and other obligations under this Agreement. Further, a duly
authorized officer of Purchaser shall have executed at Closing a “bring down certificate” with respect to the aforesaid
representations and warranties.

 

(c)         License Agreement. The License
Agreement between Moody MT and the Licensor shall have been either assigned to Purchaser or Purchaser shall have entered into a
new license agreement with Licensor and Seller, the Manager, if applicable, any guarantor, and each of their respective Affiliates,
shall have been released from all future duties, liabilities and obligations under the License Agreement and any guarantee(s) thereof,
in such form and to such an extent that Licensor customarily provides, if any (the release of Seller, Manager and, if applicable,
any guarantor shall only be a condition if Seller has not engaged in any act or omission that gives Licensor the right under the
License to not release Seller, Manager or any guarantor).

 

Each of the conditions contained in this
Section are intended for the benefit of Seller and may be waived in whole or in part, by Seller. If the conditions precedent set
forth above are neither satisfied nor waived by Seller by the Closing Date, Seller shall have the right to terminate this Agreement
and Seller and Purchaser shall be released from all further liability or obligation hereunder except those which expressly survive
the termination of this Agreement; provided however that if Purchaser is in default hereof at the time of such termination, then
Seller shall be entitled to pursue all of its rights and remedies under this Agreement.

 

ARTICLE VI

CLOSING

 

6.1       Closing.
The Closing shall occur on the Closing Date. As more particularly described below, at the Closing the parties hereto will (a)
execute or cause to be executed (and acknowledged where appropriate) all of the documents required to be delivered in connection
with the transactions contemplated hereby (the “Closing Documents”), (b) deliver or cause to be delivered the
same to the Escrow Agent, and (c) take or cause to be taken all other action required to be taken in respect of the transactions
contemplated hereby. The Closing will occur at the Title Company, or at any such other place as Seller and Purchaser may mutually
agree. At the Closing, Purchaser shall deliver the balance of the Purchase Price to Escrow Agent as provided herein. As provided
herein, the parties hereto will agree upon adjustments and prorations to certain items which cannot be exactly determined at the
Closing and will make the appropriate adjustments with respect thereto. Possession of the Property shall be delivered to Purchaser
at the Closing, subject to Permitted Title Exceptions, the Occupancy Agreements and guests in possession.

 

    	16

    	 

    

 

6.2       Seller’s Deliveries. At
the Closing, Seller shall deliver (or cause to be delivered) to the Escrow Agent all of the following instruments, each of which
shall have been duly executed and, where applicable, acknowledged and/or sworn, on behalf of Seller, and shall be dated to be effective
as of the Closing Date:

 

(a)           The Deed in the form attached hereto
as Exhibit “B”.

 

(b)           The Bill of Sale and General Assignment
in the form attached hereto as Exhibit “C”.

 

(c)           The Assignment and Assumption Agreement
in the form attached hereto as Exhibit “D”.

 

(d)           Certificate(s)/Registration of Title for any vehicle owned by Seller and used in connection with the Property (if any) in the
form required by the State of California.

 

(e)           The FIRPTA Certificate
in the form attached hereto as Exhibit “E”.

 

(f)           The “bring-down certificate”
specified in Section 5.1(b).

 

(g)           The Guaranty in the form attached hereto
as Exhibit “F”.

 

(h)           Any other document or instrument specifically
required by this Agreement.

 

Seller shall also cause the Manager to
deliver to Purchaser or make available to Purchaser at the Property:

 

(i)           all original
Warranties, Guarantees, and Hotel Agreements to be assigned to and assumed by Purchaser and in Seller’s or the
Manager’s possession,

 

(j)           information
as to all Advance Bookings, in reasonable detail so as to enable Purchaser to honor Seller’s commitments in that
regard,

 

(k)         information as to outstanding Accounts
Receivable as of midnight on the date prior to the Closing, including the name of each account and the amount due,

 

(1)         all keys, passwords,
access cards, combinations, codes and other similar entry or control devices with respect to the Property.

 

(m)        evidence of termination of the Management
Agreement and existing License Agreement, or if the License Agreement is being assigned to Purchaser, an executed original of such
assignment.

 

6.3       Purchaser’s Deliveries.
At the Closing, Purchaser shall deliver to Escrow Agent the following, duly executed and, where applicable, acknowledged and/or
sworn on behalf of Purchaser, and dated as of the Closing Date:

 

(a)         The Assignment and Assumption Agreement
in the form attached hereto as Exhibit “D”.

 

(b)         The Bill of Sale and General Assignment
in the form attached as Exhibit “C”.

 

    	17

    	 

    

 

(c)         The “bring-down certificate”
specified in Section 5.2(b).

 

(d)
        Any other document or instrument specifically required by this Agreement.

 

(e)          At
the Closing, Purchaser shall deliver to Escrow Agent the Purchase Price (less the Earnest Money and any interest thereon and the
outstanding balance on the Existing Financing) as described in Section 2.2 hereof.

 

6.4       Mutual Deliveries. At the Closing,
Purchaser and Seller shall mutually execute and deliver each to the other:

 

(a)         A closing statement reflecting the
Purchase Price and the adjustments and prorations required hereunder and the allocation of income and expenses required hereby.

 

(b)         Such other documents, instruments and
undertakings as may be required by the liquor authorities of the State where the Property is located, or of any county or municipality
or governmental entity having jurisdiction with respect to the transfer or issue of liquor licenses or alcoholic beverage licenses
or permits for the Hotel, to the extent not theretofore executed and delivered.

 

(c)         Such other and further documents, papers
and instruments as may be reasonably required by the parties hereto or their respective counsel or the Title Company to consummate
the transactions contemplated by this Agreement and which are not inconsistent with the Agreement or the other Closing Documents.

 

6.5       Closing
Costs. Seller and Purchaser shall equally divide any escrow fee other expenses or similar charges charged by the Title Company.
Seller shall pay for 100% of any county transfer taxes and Seller and Purchaser shall each pay 50% of any city transfer taxes.
Seller shall pay for any sales tax assessed by reason of the sale of the Property to Purchaser. Purchaser shall pay the premium
for the Owner’s Title Policy, any endorsements or other extended coverage related thereto and any updated survey. Purchaser
shall pay the costs of all inspections or tests undertaken by Purchaser. Purchaser shall pay all costs associated with financing
the acquisition of the Property. Purchaser shall pay all costs associated with the assignment of the License Agreement (or issuance
of a new License Agreement), including, without limitation, all application fees, inspection fees, PIP fees and transfer fees
of Licensor. Unless the payment of any other cost is specifically provided for in this Agreement, all other costs shall be apportioned
between the parties by the Title Company in the manner customary in the location of the Hotel, for properties of a similar nature.
Except as otherwise provided in Section 8.3, each party shall be responsible for the payment of its own attorney’s fees
incurred in connection with transaction which is the subject of this Agreement.

 

6.6        Revenue
and Expense Allocations. All revenues and expenses with respect to the Property, and applicable to the period of time
before and after Closing, determined in accordance with sound accounting principles consistently applied, shall be allocated
between Seller and Purchaser as provided herein. Seller shall be entitled to all revenue and shall be responsible for all
expenses for the period of time up to but not including the Closing Date, and Purchaser shall be entitled to all revenue and
shall be responsible for all expenses for the period of time from, after and including the Closing Date provided that the
housekeeping costs and the Final Rooms Revenue shall be shared equally between Seller and Purchaser. Such adjustments shall
be shown on the closing statement (with such supporting documentation as the parties hereto may reasonably require being
attached as exhibits to the closing statements) and shall increase or decrease (as the case may be) the cash amount payable
by Purchaser pursuant to Section 2.2 hereof. All prorations shall be made on the basis of the actual number of days in the
year and month in which the Closing occurs or in the period of computation. Without limiting the generality of the foregoing,
the following items of revenue and expense shall be allocated and prorated at Closing:

 

    	18

    	 

    

 

(a)         Current rents.

 

(b)         Real estate and personal property taxes
(with maximum allowable discounts for early or prompt payment).

 

(c)         Revenue and expenses under the Operating
Agreements, Leased Property Agreements and Off-Site Facility Agreements to be assigned to and assumed by Purchaser.

 

(d)         Utility charges (including, but not
limited to, charges for phone service, cable television, gas, water, sewer and electricity).

 

(e)         Municipal or other governmental improvement
liens and special assessments, which shall be paid by Seller at Closing where the work has been assessed, and which shall be assumed
by Purchaser at Closing where the work has not been assessed; provided, however, that if such liens or assessments are payable
in installments, Seller shall be responsible for the payment of such installments relating to periods prior to the Closing Date
and Purchaser shall be responsible for the payments of such installments relating to periods on and subsequent to the Closing Date.

 

(f)          License and permit fees, where transferable.

 

(g)         All other revenues and expenses of
the Property, including, but not limited to, such things as restaurant, bar and meeting room income and expenses and the like.

 

(h)         The Final Rooms Revenue and housekeeping
costs for the date of Closing (to be apportioned equally between Seller and Purchaser).

 

(h)         Such other items as are usually and
customarily prorated between purchasers and sellers of hotel properties in the area where the Property is located.

 

(i)           Employees. On the Closing
Date, Seller shall cause to be paid to all employees employed at the Hotel (“Employees”) all accrued
compensation of those Employees through the Closing Date, except for current or accrued vacation, accrued wellness/sick day,
personal day, bonus, severance pay or deferred compensation that was accrued prior to the Closing Date, which shall at the
option of Purchaser (i) be paid by Seller or (ii) be transferred to Purchaser and for which Purchaser shall receive a credit
against the Purchase; provided that if Purchaser elects to proceed under clause (ii) above, the accrued vacation and PTO
shall be transferred to Purchaser only if Seller has obtained the consent of each Employee to such transfer in accordance
with legal requirements of the State of California. Purchaser shall not be liable for any liability under the Consolidated
Omnibus Budget Reconciliation Act of 1986 (“COBRA”) or salary continuation obligations of any Employee.
Purchaser does not and shall not assume or be responsible for any employment obligations or liabilities of Seller arising
prior to the Closing Date. Without limiting the foregoing, Purchaser shall have no liability or obligation in connection with
former or current Employees or agents of Seller, or any dependent or beneficiary of any of them by reason of their
relationship to Seller for the following which shall be paid by the Seller: (A) to the extent accrued or arising from events
occurring prior to the Closing Date: (1) unpaid wages, salaries, bonus or other compensation promised by Seller or required
by law; (2) contributions to or payments under employee benefit plans, programs, policies, arrangements or understandings; or
(3) accrued, but unused vacation, sick, personal time, severance pay and deferred compensation, if any; or (4) liabilities or
obligations under any collective bargaining relationship or any other union contracts; or (B) claims, demands, administrative
proceedings or suits arising out of, or in connection with, alleged unlawful employment practices of Seller.

 

    	19

    	 

    

 

Seller shall receive a credit for any prepaid
expenses accruing to periods on or after the Closing Date. Purchaser shall receive a credit against the Purchase Price for the
total of (a) prepaid rents, (b) prepaid room receipts and deposits, function receipts and deposits and other reservation receipts
and deposits, and (c) unforfeited security deposits together with any interest payable to a tenant thereon held by Seller under
Occupancy Agreements. At 11:59 p.m. the day prior to Closing, Seller shall check-out those hotel guests who are in occupancy at
the Hotel, so as to directly bill and collect all revenues generated prior to the Closing Date, and then immediately check those
hotel guests back into the Hotel so they can be included in the Final Rooms Revenue for the Closing Date. At Closing, Seller shall
sell to Purchaser in connection with the Hotel, and Purchaser shall purchase from Seller at face value all petty cash funds in
connection with the hotel guest operations at the Property, which shall be an amount equal to the total of all petty cash funds
on hand and transferred to Purchaser. In addition, Seller shall provide a credit to Purchaser in an amount equal to one-half (1/2)
of the Final Rooms Revenue from the night prior to the Closing Date. The procedure and method of making the proration adjustments
set forth in this Section 7.6 is attached to this Agreement as Exhibit G.

 

       Purchaser
shall receive a credit for all retail sales (as distinguished from any tax on the sale of any personal property effected pursuant
to this Agreement), occupancy and liquor taxes and like impositions up to but not including the Closing Date. Any such taxes applicable
to the Final Rooms Revenue shall be apportioned equally between Seller and Purchaser. Seller shall cooperate reasonably with Purchaser
to permit Purchaser to obtain, if desired by Purchaser, sale and occupancy tax clearance certificates from the State in which
the Real Property is located.

 

       If
accurate allocations cannot be made at Closing because current bills are not obtainable (as, for example, in the case of utility
bills and/or real estate or personal property taxes), the parties shall allocate such revenue or expenses at Closing on the best
available information, subject to adjustment upon receipt of the final bill or other evidence of the applicable revenue or expense.
The obligation to make the adjustment shall survive the closing of the transaction contemplated by this Agreement. Any revenue
received or expense incurred by Seller or by Purchaser with respect to the Property after the Closing Date shall be promptly allocated
in the manner described herein and the parties shall promptly pay or reimburse any amount due. With respect to any closing statements
amounts or issues relating to prorations that are not agreed upon at Closing, Seller and Purchaser shall thereafter work in good
faith to resolve such amounts or issues; provided that if such amounts or issues are not fully agreed upon and paid within ten
(10) days after the Closing, then, in such event, such amounts or issues shall be submitted to an independent certified public
accountant with a hospitality practice reasonably acceptable to Seller and Purchaser for final resolution, and Seller and Purchaser
agree to be bound by the determination of such accountant. The costs and expenses incurred in connection with the services of
such accountant shall be borne equally by Seller and Purchaser. The provisions of this Section 6.6 shall survive the Closing.

 

6.7       Safe
Deposit Boxes. On the Closing Date, Seller shall cause the Manager to make available to Purchaser at the Hotel
all receipts and agreements in the Manager’s possession relating to all safe deposit boxes in use at the Hotel, other
than safes or lockboxes, if any, located inside individual guest rooms in Hotel. During the Study Period, Seller and
Purchaser shall mutually agree upon a procedure to provide notice to each Hotel guest utilizing a safe deposit box on the
Closing Date about the sale of the Property and to cause each such Hotel guest to adhere to the procedure set forth in the
notice so that a proper inventory can be prepared and an orderly transition made. From and after the Closing, Seller and the
Manager shall be relieved of any and all responsibility in connection with each said box, and Purchaser shall indemnify,
defend and hold Seller and the Manager and harmless from and against any claim, liability, cost or expense (including
reasonable attorneys’ fees) with respect to such safety deposit box arising after the Closing. Seller hereby agrees to
hold Purchaser harmless from any other liability or claims with respect to such safe deposit boxes arising prior to the
Closing Date. The provisions of this Section 6.7 shall survive the Closing.

 

    	20

    	 

    

 

6.8       Inventory of Baggage. The representatives
of Seller and/or the Manager, and of Purchaser shall prepare an inventory of baggage at the Hotel as of 12:00 noon on the Closing
Date (which inventory of baggage shall be binding on all parties thereto) of (a) all luggage, valises and trunks checked or left
in the care of the Hotel by guests then or formerly in the Hotel, (b) parcels, laundry, valet packages and other property of guests
checked or left in the care of the Hotel by guests then or formerly in the Hotel (excluding, however, property in Hotel safe deposit
boxes), (c) all luggage or other property of guests retained by Seller as security for any unpaid accounts receivable, and (d)
all items contained in the Hotel lost and found. Purchaser shall be responsible from and after the Closing Date for all baggage
and other items listed in such inventory of baggage, and Purchaser shall indemnify, defend and hold Seller and the Manager harmless
from and against any claim liability, cost or expense (including reasonable attorneys’ fees) incurred by Seller or the Manager
or any Affiliate thereof with respect thereto arising after the Closing Date. Seller hereby agrees to hold Purchaser harmless from
any other liability or claims with respect to such inventory of baggage arising prior to the Closing Date. The provisions of this
Section 6.8 shall survive the Closing.

 

6.9       Accounts Receivable. It is expressly
agreed by and between Purchaser and Seller that Seller is not hereby agreeing to sell to Purchaser, and Purchaser is not hereby
agreeing to purchase from Seller, any of Seller’s accounts receivable. All of Seller’s accounts receivable shall be
and remain the property of Seller. At the Closing, Seller shall prepare a list of its outstanding accounts receivable as of midnight
on the date prior to the Closing, specifying the name of each account and the amount due to Seller. Purchaser shall hold any funds
received by Purchaser explicitly designated as payment of such accounts receivable, in trust, if Purchaser actually collects any
such amounts, and shall pay the monies collected in respect thereof to Seller at the end of each calendar month, accompanied by
a statement showing the amount collected on each such account. Other than the foregoing, Purchaser shall have no obligation with
respect to any such account, and Purchaser shall not be required to take any legal proceeding or action to effect collection on
behalf of Seller. It is generally the intention of Purchaser and Seller that although all of Seller’s accounts receivable
shall be and remain the property of Seller, if any such accounts are paid to Purchaser, then Purchaser shall collect same and remit
to Seller in the manner above provided. Nothing herein contained shall be construed as requiring Purchaser to remit to Seller any
funds collected by Purchaser on account of Purchaser’s accounts receivable generated from Hotel operations after the Closing,
even if the person or entity paying same is also indebted to Seller.

 

6.10     Accounts Payable. Purchaser
shall receive a credit for any and all accounts payable owed by Seller in connection with the Property as of the Closing Date.

 

6.11     Property Improvement Plan.
Seller, at Seller’s sole cost and expense, shall complete all of the work described in Product Improvement Plan dated January
29, 2014 (the “2014 PIP”) and Seller shall provide Purchaser with written documentation from Licensor that Seller
has completed the 2014 PIP promptly upon receipt from Licensor.

 

    	21

    	 

    

 

(a)         Seller, at
Seller’s sole cost, shall order and ten (10) days prior to the expiration of the Study Period deliver to Purchaser a
new property improvement plan (the “2015 PIP”) with respect to the sale of the Hotel to Purchaser. If the
2015 PIP requires any work, Seller shall provide written notice to Purchaser that Seller elects to: (a) complete the work; or
(b) agree to provide Purchaser with a credit against the Purchase Price as provided herein.

 

(b)         In the event Seller elects to provide
a credit at Closing in the amount of the estimated cost to complete the 2015 PIP, the estimated cost to complete the 2015 PIP shall
be subject to Purchaser’s written approval. If Seller and Purchaser are unable to agree on the estimated cost to complete
the 2015 PIP, then Seller and Purchaser shall each select a general contractor with at least 10 years of experience in performing
hotel renovation work and each contractor shall prepare and deliver to the other a bid to complete the 2015 PIP. If each of the
two bids is within 10% of the other, then the estimated cost to complete the 2015 PIP shall be the average of the two bids. If
each of the two bids is 10% higher or lower than the other, then the two selected general contractors shall select a third general
contractor (who must also have not less than 10 years of experience in performing hotel renovation work) and the third general
contractor shall provide a bid. The estimated cost to complete the 2015 PIP shall be the arithmetical average of the three bids;
provided, however, if either of the Seller’s or Purchaser’s general contractor’s bid is 10% higher or lower than
the third general contractor’s bid, such bid shall be disregarded. The provisions of this Section 6.11 shall survive the
Closing. Seller, at Seller’s sole cost, shall perform all obligations of Seller under the License Agreement for the period
up to the Closing Date.

 

ARTICLE VII

GENERAL PROVISIONS

 

7.1       Fire
or Other Casualty. Seller agrees to give Purchaser prompt notice of any fire or other casualty to the Property
costing more than One Hundred Thousand Dollars ($100,000.00) to repair and occurring between the Effective Date and the
Closing Date of which Seller has knowledge. If, prior to Closing, the Property is damaged by fire or other casualty which is
fully insured (without regard to deductibles) and would cost less than Five Hundred Thousand Dollars ($500,000.00) and
require less than 180 days to repair, then neither party shall have the right to terminate this Agreement by reason thereof
and the Closing shall take place without abatement of the Purchase Price, but Seller shall assign to Purchaser at the Closing
all of Seller’s interest in any insurance proceeds (except use and occupancy insurance, rent loss and business
interruption insurance, and any similar insurance, attributable to the period preceding the Closing Date) that may be payable
to Seller on account of any such fire or other casualty, to the extent such proceeds have not been previously expended or are
otherwise required to reimburse Seller for actual expenditures of restoration made prior to the Closing Date, plus
Seller shall credit the amount of any deductibles under any policies related to such proceeds to the Purchase Price together
with any amount not covered by insurance. If any such damage due to fire or other casualty is insured and would cost in
excess of Five Hundred Thousand Dollars ($500,000.00) or require more than 180 days to repair, then Purchaser may terminate
this Agreement by written notice given to Seller within ten (10) days after Seller has given Purchaser the notice of damage
or casualty referred to in this Section 7.1, or on the Closing Date, whichever is earlier, in which case the parties hereto
shall be released of all further obligations hereunder with respect to the Property except those which expressly survive a
termination of this Agreement. Should Purchaser elect to proceed to Closing notwithstanding the amount of the insured loss or
the time required for repairs, the Closing shall take place without abatement of the Purchase Price and at Closing Seller
shall assign to Purchaser the insurance proceeds and grant to Purchaser a credit against the Purchase Price equal to the
amount of the applicable deductible. If, prior to Closing, any Property is damaged by fire or casualty which is uninsured and
would cost Five Hundred Thousand Dollars ($500,000.00) or more to repair, then Purchaser may terminate this Agreement by
written notice given to Seller within ten (10) days after Seller has given Purchaser the notice of damage or casualty or on
the Closing Date, whichever is earlier, in which case the parties hereto shall be released of all further obligations
hereunder, except those which expressly survive a termination of this Agreement. If Purchaser does not elect to terminate its
obligations under this Agreement pursuant to the immediately preceding sentence, or if any uninsured fire or casualty would
cost less than Five Hundred Thousand Dollars ($500,000.00) to repair, then the Closing shall take place as provided herein,
and the Purchase Price shall be reduced by the estimated amount to repair such casualty, not to exceed Five Hundred Thousand
Dollars ($500,000.00).

 

    	22

    	 

    

 

7.2       Condemnation. After the Effective
Date, Seller agrees to give Purchaser prompt written notice of any knowledge of or notice of any taking by condemnation of any
part of or rights appurtenant to the Real Property. If taking will materially interfere with the operation or use of any Hotel
which constitutes a part of such Real Property, Purchaser may terminate this Agreement by written notice to Seller within ten (10)
days after Seller has given Purchaser the notice of taking referred to in this Section 7.2, or on the Closing Date, whichever is
earlier. If Purchaser exercises its option to terminate its obligations to purchase the Property pursuant to this Section 7.2,
the parties hereto shall be released from all further obligations hereunder with respect to the Property, except those which expressly
survive a termination of the Agreement. If Purchaser does not so elect to terminate this Agreement, then the Closing shall take
place as provided herein, and Seller shall assign to Purchaser at the Closing all of Seller’s interest in any condemnation
award which may be payable to Seller on account of any such condemnation and, at Closing, Seller shall credit to the amount of
the Purchase Price payable by Purchaser the amount, if any, of condemnation proceeds received by Seller between the Effective Date
and Closing less (a) any amounts reasonably expended by Seller in collecting such sums and (b) any amounts reasonably used by Seller
to repair the Property as a result of such condemnation. If, prior to Closing, there shall occur a taking by condemnation of any
part of or rights appurtenant to the Property that does not materially interfere with the operation or use of the Hotel which constitutes
a part of the Property, Purchaser shall not have the right to terminate this Agreement by reason thereof and the Closing shall
take place without abatement of the Purchase Price, but Seller shall assign to Purchaser at Closing all of Seller’s interest
in any condemnation award which may be payable to Seller on account of any such condemnation and, at Closing, Seller shall credit
to the amount of the Purchase Price payable by Purchaser the amount, if any, of condemnation proceeds received by Seller between
the Effective Date and Closing less (a) any amounts reasonably expended by Seller in collecting such sums and (b) any amounts reasonably
used by Seller to repair the Property as a result of such condemnation. Provided Purchaser has not exercised its right to terminate
this Agreement pursuant to Section 7.2, Seller shall notify Purchaser in advance regarding any proceeding or negotiation with respect
to the condemnation and Purchaser shall have a reasonable right, at its own cost and expense, to appear and participate in any
such proceeding or negotiation. For purposes of Sections 7.1 and 7.2 if this Agreement, estimates of costs and time required for
restoration or repair shall be made by an architect or engineer, as appropriate, designated by Seller and reasonably acceptable
to Purchaser.

 

7.3       Broker. Seller and Purchaser
each represent and warrant to the other that they have not employed any real estate sales representatives or brokers regarding
the transaction contemplated by this Agreement other than [Paramount Lodging Advisors] in respect of which Seller shall be solely
responsible for all related fees due under Seller’s separate agreement with such broker. Seller shall indemnify, defend and
hold Purchaser harmless from any commission or fee claimed to be owing due to the acts of Seller. Purchaser shall indemnify, defend
and hold Seller harmless from any commission or fee claimed to be owing due to the acts of Purchaser. This section relates solely
to the transaction contemplated by this Agreement between Seller and Purchaser and shall not create any third party right or obligation
in favor of either or any broker. The provisions of this Section 7.3 shall survive the Closing and any termination of this Agreement.

 

    	23

    	 

    

 

ARTICLE VIII

DEFAULT; TERMINATION RIGHTS

 

8.1       Default by Seller. If the sale
contemplated hereby is not consummated because of a default by Seller in its obligation to sell the Property in accordance with
this Agreement after Purchaser has performed or tendered performance of all of its obligations in accordance with this Agreement,
then Purchaser, as its sole and exclusive remedy shall elect either (a) to terminate this Agreement, in which event all other rights
and obligations of the Seller and the Purchaser hereunder (except those set forth herein which expressly survive a termination
of this Agreement) shall terminate immediately; or (b) to waive such matter or condition and proceed to Closing, with no reduction
in the Purchase Price. In the event of such termination, the Earnest Money shall be refunded by the Escrow Agent to the Purchaser
and Seller shall pay Purchaser’s Transaction Costs up to the amount of the Purchaser’s Transaction Costs Cap. Notwithstanding
the preceding sentence, if, at Closing, the Seller fails to comply in any material respect with any of its obligations contained
in Section 6.2 or Section 6.4 (the “Closing Obligations”), and if all conditions precedent to the Seller’s
obligations hereunder have been satisfied and the Purchaser has fully performed all of its obligations under the Agreement, the
Purchaser shall have, in addition to the Purchaser’s remedies contained in the preceding sentence, the option to waive all
other actions, rights, or claims for damages for such failure, other than costs and expenses incurred in enforcing this Agreement,
and to bring an equitable action to enforce the Closing Obligations by specific performance; provided, (a) the Purchaser shall
provide written notice of the Purchaser’s intention to enforce the Closing Obligations by specific performance, and (b) the
Purchaser’s suit for specific performance shall be filed against the Seller in a court having jurisdiction in the county
and state in which the Property is located, on or before sixty (60) days following the Closing Date, failing which, the Purchaser
shall be barred from enforcing the Closing Obligations by specific performance and shall be deemed to have elected to terminate
this Agreement as provided herein.

 

8.2      
Default by Purchaser. If the sale contemplated hereby is not consummated because of a default by Purchaser in its obligation
to purchase the Property in accordance with this Agreement, the Seller, as its sole and exclusive remedy, shall be permitted to
terminate this Agreement in which event the parties hereto shall be released from all further obligations hereunder except those
which expressly survive a termination of this Agreement. In the event of such termination, the Seller shall be entitled to receive
the Earnest Money from the Escrow Agent as liquidated damages and not as penalty, in full satisfaction of its claims against the
Purchaser hereunder. SELLER AND PURCHASER AGREE THAT THE SELLER’S DAMAGES RESULTING FROM THE PURCHASER’S DEFAULT ARE
DIFFICULT, IF NOT IMPOSSIBLE, TO DETERMINE AND THE EARNEST MONEY IS A FAIR ESTIMATE OF THOSE DAMAGES WHICH HAS BEEN AGREED TO
IN AN EFFORT TO CAUSE THE AMOUNT OF SAID DAMAGES TO BE CERTAIN.

 

8.3       Costs and Attorneys’ Fees.
In the event of any litigation or dispute between the parties arising out of or in any way connected with this Agreement, resulting
in any litigation, then the prevailing party in such shall be entitled to recover its costs of prosecuting and/or defending same,
including, without limitation, reasonable attorneys’ fees at trial and all appellate levels. The provisions of this Section
8.3 shall survive the termination of this Agreement.

 

8.4       Limitation of Liability. Notwithstanding
anything herein to the contrary, the liability of each party hereto resulting from the breach or default by such party shall be
limited to direct actual damages incurred by the injured party and each party hereto hereby waives its rights to recover from the
other party consequential, punitive, exemplary, and speculative damages. The provisions of this Section 9.4 shall survive the termination
of this Agreement.

 

    	24

    	 

    

 

ARTICLE IX

 

COVENANTS

 

9.1       Conduct of Business. Seller
agrees that during the period from the Effective Date to the Closing Date Seller shall:

 

(a)         operate the Hotel in substantially
the same manner in which Seller operated the Hotel prior to the Effective Date including, without limitation, (i) maintaining customary
levels of the inventories of linens, supplies, food and beverage and all other Inventories and supplies, (ii) performing maintenance
and repairs for the Real Property and Hotel in the ordinary course of business and (iii) maintaining all Authorizations in full
force and effect;

 

(b)         not enter into any new Hotel Agreement
that is not terminable without penalty on thirty (30) days’ or less notice, without Purchaser’s prior written consent
which shall not be unreasonably withheld or delayed (except after expiration of the Study Period, such consent may be withheld
in Purchaser’s sole discretion). After the expiration of the Study Period, Seller shall be entitled to terminate any contract
and/or agreement unless Purchaser has notified Seller in writing prior to the expiration of the Study Period, that it wants Seller
to assign the same to Purchaser at Closing;

 

(c)         maintain, or, if applicable, renew
or replace with comparable coverage, the insurance coverage currently in effect for the Property;

 

(d)         cause Manager to not (i) enter into
any collective bargaining agreements, (ii) increase the compensation of any Employee, (iii) hire or terminate any Employee, (iv)
enter into or amend any employment agreement with any Employee that is not terminable at will and without liability, without Purchaser’s
consent, which may be withheld in Purchaser’s sole discretion, or (v) commit to do any of the foregoing;

 

(e)         continue to make Advance Bookings in
the ordinary course of business;

 

(f)          cause to be paid before delinquency
all ad valorem, occupancy sales and other similar taxes due and payable for the Real Property or the operation of the Hotel;

 

(g)         maintain its books of account and records
in the usual, regular and ordinary manner, in accordance with sound accounting principles applied on a basis consistent with the
basis used in keeping its books in prior years;

 

(h)         not sell, mortgage, pledge, hypothecate
or otherwise transfer or dispose of all or any part of the Property or any interest therein, or enter into any agreement to do
any of the foregoing; provided that Seller may dispose of Tangible Personal Property in the ordinary course of business (e.g.,
equipment that has reached the end of its useful life) so long as it is replaced with items of reasonably equivalent quality; and

 

(i)         
notify Purchaser in writing if Seller has actual knowledge that any event or omission has occurred that would change any of the
Seller’s representations set forth in Section 8.2.

 

    	25

    	 

    

 

9.2      
Tax Certificates. Seller shall notify all of the taxing authorities in the jurisdictions that impose taxes on Seller or
where Seller has a duty to file tax returns of the transactions contemplated by this Agreement in the form and manner required
by such taxing authorities, including, without limitation, with respect to any state or local sales taxes and any county or municipal
transient occupancy or any related tax applicable to hotels operating in Alameda County, California. Seller shall promptly pay
any and all such amounts and shall provide Purchaser with written evidence of payment in full or satisfaction of such taxes (each
a “Tax Certificate”), as may be necessary for Purchaser to evidence payment of such amounts in its required
filings for such taxes after the Closing. During the Survival Period and subject to Seller’s Post-Closing Liability Cap
(but not Seller’s Post-Closing Liability Floor), Seller agrees to indemnify, defend and hold harmless Purchaser from and
against any claim, liability, or judgment asserted on account of or with respect to any causes of action, charges, claims, complaints,
damages, judgments, and/or orders, whatsoever, and all costs and expenses (including, without limitation, reasonable attorneys’
fees and costs) incurred in connection therewith on account of any failure of Seller to comply with the covenants, obligations,
or duties contained in this Section 9.2. This Section 9.2 shall survive the Closing.

 

9.3       Guaranty. If the Closing occurs,
Seller agrees to cause Moody National REIT I, Inc., a Maryland corporation to execute the Guaranty in the form attached hereto
as Exhibit “F” (the “Guaranty”) to guaranty Seller’s obligations under Sections
9.2 and 9.4(b).

 

9.4       Indemnification Obligations.

 

(a)         Indemnification Loss. As used
herein, “Indemnification Loss” shall mean any actual (and not contingent) liability, damage, loss, cost or expense,
including, without limitation, reasonable attorney’s fees and expenses and court costs, incurred by such any Party as a result
of the act, omission or occurrence in question.

 

(b)         Indemnification by Seller. Subject
to Seller’s Post-Closing Liability Floor and Seller’s Post-Closing Liability Cap, Seller shall indemnify, defend and
hold harmless the Purchaser and its directors, officers, employees, agents, managers, managing principals, affiliates, principals,
partners, shareholders, representatives, and controlling persons (collectively, the “Purchaser Related Parties”)
from and against any Indemnification Loss incurred by the Purchaser Related Parties to the extent resulting from (i) Seller’s
ownership and operation of the Hotel or any portion thereof at any time or times prior to the Closing, (ii) the breach of any representations
or warranties of Seller in this Agreement and/or the closing documents and (iii) the breach by Seller of any of its covenants or
obligations under this Agreement.

 

(c)         Indemnification by Purchaser.
Purchaser shall indemnify and hold harmless Seller and its directors, officers, employees, agents, managers, managing principals,
affiliates, principals, partners, shareholders, representatives, and controlling persons (collectively, “Seller Related
Parties”) from and against any Indemnification Loss incurred by the Seller Related Parties to the extent resulting from
(i) Purchaser’s ownership and operation of the Hotel or any portion thereof at any time or times after the Closing, (ii)
any material breach of any representations or warranties of Purchaser in this Agreement and (iii) any material breach by Purchaser
of any of its covenants or obligations under this Agreement.

 

(d)         Survival of Indemnification.
All claims made by any Party against the other under this Section 9.4 must be asserted in writing and delivered to the other no
later than fifteen (15) days after the expiration of the Survival Period or such claims shall be invalid and of no force or effect,
and in connection with claims made by Seller against Purchaser, Purchaser shall have no liability with respect thereto, and in
connection with claims made by Purchaser against Seller, Seller shall have no liability with respect thereto. The provisions of
this Section 9.4 shall survive the Closing or any termination of this Agreement.

 

    	26

    	 

    

 

9.5       Transition of Employees. From
and after the expiration of the Study Period, provided that Purchaser has elected to proceed with the transaction, the Parties
shall meet and cooperate to effect an orderly transition of ownership and possession of the Property on the Closing Date. Purchaser
shall not contact (or otherwise discuss this transaction with) any supervisory personnel or other employees at the Hotel (“Hotel
Employees”) without Seller’s prior written consent, which consent shall not be unreasonably withheld. At the Closing,
Seller shall transfer and/or terminate or cause to be transferred and/or terminated all of the employees at the Hotel and Purchaser
shall offer employment to a sufficient number of such terminated employees to make any requirements of the Worker Adjustment and
Retraining Notification Act, 29 U.S.C. 2101 (and any comparable State law) (collectively, the “WARN Act”) inapplicable
to this transaction. Seller shall defend, indemnify and hold harmless Purchaser and the Purchaser Related Parties from and against
all claims, losses, costs, actions, judgments, liabilities, damages and expenses arising out of or in connection with any Property-related
employment matters accruing prior to the Closing (provided, however, that Seller shall have no liability hereunder for any claims,
losses, costs, actions, judgments, liabilities, damages and expenses relating to or arising from Purchaser’s failure to perform
its obligations under this Section 9.5), and Purchaser shall defend, indemnify and hold harmless Seller, and the other Released
Parties from and against any and all claims, losses, costs, actions, judgments, liabilities, damages and expenses arising out of
or in connection with (i) any Property-related employment matters accruing on or after the Closing and/or (ii) the WARN Act. Notwithstanding
anything to the contrary contained in this Agreement, Purchaser may (but no sooner than ten (10) Business Days prior to the Closing
Date) interview and/or train Employees (“Employee Transition Process”), and Seller shall cooperate with Purchaser
throughout the entire Employee Transition Process (“Transition Cooperation”). Purchaser shall reimburse Seller
for any additional payroll expenses directly attributable to Hotel Employees’ participation in the Employee Transition Process.

 

9.6       Orderly Transition. Seller shall,
at no out-of-pocket cost or expense to Seller, cooperate with Purchaser and its management team in order to effectuate a smooth
and orderly transition in the operation of the Hotel at Closing. In this regard, Seller shall permit Purchaser’s management
team to “shadow” Seller’s management team commencing on the date that is three (3) Business Days prior to the
Closing. During this three (3) Business Day period, Purchaser shall be given access to Seller’s management and reservation
systems so as to enable Purchaser to export advance bookings and reservations into Purchaser’s system.

 

ARTICLE X

MISCELLANEOUS PROVISIONS

 

10.1     Completeness; Modification.
This Agreement constitutes the entire agreement between the parties hereto with respect to the transactions contemplated hereby
and supersedes all prior discussions, understandings, agreements and negotiations between the parties hereto. This Agreement may
be modified only by a written instrument duly executed by the parties hereto.

 

10.2     Successors and Assigns. This
Agreement shall bind and inure to the benefit of the parties hereto and their permitted respective successors and assigns.

 

10.3
    Days. If any action is required to be performed, or if any notice, consent or other
communication is given, on a day that is a Saturday or Sunday or a legal holiday in the jurisdiction in which the action is
required to be performed or in which is located the intended recipient of such notice, consent or other communication, such
performance shall be deemed to be required, and such notice, consent or other communication shall be deemed to be given, on
the first business day following such Saturday, Sunday or legal holiday. Unless otherwise specified herein, all references
herein to a “day” or “days” shall refer to calendar days and not business days.

 

    	27

    	 

    

 

10.4     Governing Law. This Agreement
and all documents referred to herein shall be governed by and construed and interpreted in accordance with the laws of the state
in which the Property is located without regard to its principle of conflicts of law.

 

10.5     Counterparts. To facilitate
execution, this Agreement may be executed in as many counterparts as may be required. It shall not be necessary that the signature
on behalf of both parties hereto appear on each counterpart hereof. All counterparts hereto shall collectively constitute a single
agreement. Telecopied signatures shall have the same valid and binding effect as original signatures.

 

10.6     Severability. If any term,
covenant or condition of this Agreement, or the application thereof to any person or circumstance, shall to any extent be invalid
or unenforceable, the remainder of this Agreement, or the application of such term, covenant or condition to other persons or circumstances,
shall not be affected thereby, and each term, covenant or condition of this Agreement shall be valid and enforceable to the fullest
extent permitted by law.

 

10.7     Costs.
Regardless of whether Closing occurs hereunder, and except as otherwise expressly provided herein, each party hereto shall be
responsible for its own costs in connection with this Agreement and the transactions contemplated hereby, including, without limitation,
fees of attorneys, engineers and accountants.

 

10.8    
Notices. All notices, requests, demands and other communications hereunder shall be in writing and shall be delivered by
hand, sent prepaid for next-day delivery by Federal Express (or a comparable overnight delivery service) or sent by the United
States mail, certified, postage prepaid, return receipt requested, at the addresses and with such copies as designated below.
Any notice, request, demand or other communication delivered or sent in the manner aforesaid may be given by the party required
to give such notice, etc., or its attorney, and shall be deemed given or made (as the case may be) when actually delivered to
or refused by the intended recipient.

 

	If to Seller:	Moody National TPS Newark MT, LLC

6363 Woodway, Suite 110

Houston, Texas 77057 

Attn: Brett Moody 

Telephone: (713) 977-7500 

Facsimile: (713) 977-7505 

bmoody@moodynational.com
	 	 
	and	Sneed Vine & Perry, P.C.   

900 Congress, Suite 300 

Austin, Texas 78701 

Attn: Adam S. Wilk/Kasi M. Moeskau 

Telephone: (512) 476-6955 

Facsimile: (512) 476-1825 

awilk@sneedvine.com 

kmoeskau@sneedvine.com

 

    	28

    	 

    

 

	If to Purchaser:	Holiday Garden SF Corp.   

1540 W. Artesia Sq., Unit D 

Gardena, CA 90248 

Attention: Dony Chen 

Facsimile No.: (408)668-0922 

E-mail: dony.chen@hotelhg.com.tw
	 	 
	and:	Haas&Najarian, LLP   

58 Maiden Lane, 2nd Floor 

San Francisco, CA 94108 

Attention: Rob Nicholas, Esq. 

Facsimile No.: (415)391-0555 

E-mail: rnicholas@hnattorneys.com
	 	 
	If to Title Company:	Chicago Title Insurance Company   

455 Market Street, Suite 2100 

San Francisco, CA 94105 

Attention: Terina J. Kung 

Facsimile No.: (415) 896-9423 

E-mail: kungt@,ctt.com

 

or to such other address as the intended
recipient may have specified in a notice to the other party. Any party hereto may change its address or designate different or
other persons or entities to receive copies by notifying the other party and Escrow Agent in a manner described in this Section.

 

10.9     Escrow Agent. Escrow Agent
has agreed to act as such for the convenience of the parties without fee or other charges for such services as Escrow Agent. Escrow
Agent shall not be liable: (a) to any of the parties for any act or omission to act except for its own willful misconduct; (b)
for any legal effect, insufficiency, or undesirability or any instrument deposited with or delivered by Escrow Agent or exchanged
by the parties hereunder, whether or not Escrow Agent prepared such instrument; (c) for any loss or impairment of funds that have
been deposited in escrow while those funds are in the course of collection, or while those funds are on deposit in a financial
institution, if such loss or impairment results from the failure, insolvency or suspension of a financial institution; (d) for
the expiration of any time limit or other consequences of delay, unless a properly executed written instruction, accepted by Escrow
Agent, has instructed Escrow Agent to comply with said time limit; (e) for the default, error, action or omission of either party
to the escrow. Escrow Agent, in its capacity as escrow agent, shall be entitled to rely on any document or paper received by it,
believed by such Escrow Agent, in good faith, to be bona fide and genuine. In the event of any dispute as to the disposition of
any monies held in escrow, or of any documents held in escrow, Escrow Agent may, if such Escrow Agent so elects, interplead the
matter by filing an interpleader action in a court of competent jurisdiction in the county or circuit where the Real Properly is
located (to the jurisdiction of which both parties do hereby consent), and pay into the registry of the court such monies held
by Escrow Agent, or deposit any such documents with respect to which there is a dispute in the registry of such court, whereupon
such Escrow Agent shall be relieved and released from any further liability as Escrow Agent hereunder. Escrow Agent shall not be
liable for Escrow Agent’s compliance with any legal process, subpoena, writ, order, judgment and decree of any court, whether
issued with or without jurisdiction, and whether or not subsequently vacated, modified, set aside or reversed.

 

    	29

    	 

    

 

10.10    Incorporation by Reference.
All of the exhibits and schedules attached hereto are by this reference incorporated and made a part hereof.

 

10.11   Further Assurances. Seller
and Purchaser each covenant and agree to sign, execute and deliver, or cause to be signed, executed and delivered, and to do or
make, or cause to be done or made, upon the written request of the other party, any and all agreements, instruments, papers, deeds,
acts or things, supplemental, confirmatory or otherwise, as may be reasonably required by either party hereto for the purpose of
or in connection with consummating the transactions described herein provided that compliance with the provision of this Section
shall not increase the liability of the complying party.

 

10.12   No Partnership. This Agreement
does not and shall not be construed to create a partnership, joint venture or any other relationship between the parties hereto
except the relationship of seller and purchaser specifically established hereby.

 

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

 

10.14
  Signatory Exculpation. The signatory(ies) for Seller and Purchaser is/are executing this Agreement in his/their
capacity as representative of such party and not individually and, therefore, shall have no personal or individual liability of
any kind in connection with this Agreement and the transactions contemplated by it.

 

10.15   Rules of Construction. The
following rules shall apply to the construction and interpretation of this Agreement:

 

(a)         Singular words shall connote the plural
number as well as the singular and vice versa, and the masculine shall include the feminine and the neuter.

 

(b)         All references herein to particular
articles, sections, subsections, clauses or exhibits are references to articles, sections, subsections, clauses or exhibits of
this Agreement.

 

(c)         The headings contained herein are solely
for convenience of reference and shall not constitute a part of this Agreement nor shall they affect its meaning, construction
or effect.

 

(d)         Each party hereto and its counsel have
reviewed and revised (or requested revisions of) this Agreement and have participated in the preparation of this Agreement, and
therefore any usual rules of construction requiring that ambiguities are to be resolved against a particular party shall not be
applicable in the construction and interpretation of this Agreement or any exhibits hereto.

 

10.16   No Recording. Neither this
Agreement nor any memorandum hereof, or any other instrument intended to give notice hereof (or which actually gives notice hereof)
shall be recorded.

 

10.17
  Facsimile Signatures. The execution of this Agreement and all notices given hereunder and all amendments hereto,
may be effected by facsimile signatures, all of which shall be treated as originals; provided, however, that the party receiving
a document with a facsimile signature may, by notice to the other, require the prompt delivery of an original signature to evidence
and confirm the delivery of the facsimile signature.

 

10.18   Assignment by Purchaser. Other
than to an Affiliate of Purchaser, Purchaser may not assign its rights hereunder without the prior consent of Seller; however,
any such assignment (including one to Purchaser’s Affiliate) shall not relieve Purchaser of its obligations under this Agreement.

 

    	30

    	 

    

 

10.19   Waiver. The excuse or waiver
of the performance by a party of any obligation of the other party under this Agreement shall only be effective if evidenced by
a written statement signed by the party so excusing or waiving. No delay in exercising any right or remedy shall constitute a waiver
thereof, and no waiver by Seller or Purchaser of the breach of any covenant of this Agreement shall be construed as a waiver of
any preceding or succeeding breach of the same or any other covenant or condition of this Agreement.

 

10.20   Section
1031 Exchange. Either party may consummate the purchase or sale of the Property as part of a so-called like kind exchange
(an “Exchange”) pursuant to Section 1031 of the Internal Revenue Code of 1986, as amended (the
“Code”), provided that (i)the Closing shall not be delayed or affected by reason of an Exchange nor shall
the consummation or accomplishment of any Exchange be a condition precedent or condition subsequent to a party’s
obligations under this Agreement; (ii) any party desiring an Exchange shall effect its Exchange through an assignment of this
Agreement, or its rights under this Agreement, to a qualified intermediary and the other party shall not be required to take
an assignment of the purchase agreement for the relinquished or replacement property or be required to acquire or hold title
to any real property for purposes of consummating such Exchange; and (iii) the party desiring an Exchange shall pay any
additional costs that would not otherwise have been incurred by Purchaser or Seller had such party not consummated its
purchase or sale through an Exchange. Neither party shall by this agreement or acquiescence to an Exchange desired by the
other party (1) have its rights under this Agreement affected or diminished in any manner or (2) be responsible for
compliance with or be deemed to have warranted to the other party that such party’s Exchange in fact complies with
Section 1031 of the Code. In connection with such cooperation, Seller agrees, upon request of Purchaser to “direct
deed” for actual interests in the property to designees of Purchaser.

 

10.21   Litigation Expenses. In the
event that either Seller or Purchaser is required to employ an attorney because any litigation or other dispute resolution proceeding
arises out of this Agreement between the Parties hereto, the non-prevailing Party shall pay the prevailing Party all reasonable
fees and expenses, including reasonable attorneys’ fees and expenses, incurred in connection with such litigation or other
dispute resolution proceeding. This provision shall survive termination of this Agreement and Closing.

 

10.22   Confidentiality. Purchaser
acknowledges that the existence of the transaction described herein and any documents, materials, instruments, records or other
information delivered by Seller to Purchaser pursuant to this Agreement, including, without limitation, the Submission Matters
(“Information”), shall be kept confidential by Purchaser, will not be used for any purpose other than in connection
with Purchaser’s due diligence, and Purchaser shall neither disclose nor allow the disclosure of the Information or the existence
of the transaction to anyone other than Purchaser’s Parties as are appropriate in order to conduct its due diligence.

 

[SIGNATURE
PAGE TO FOLLOW]

 

    	31

    	 

    

 

IN “WITNESS WHEREOF, Seller and Purchaser
have caused this Agreement to be executed in their names by their respective duly authorized representatives.

 

	 	FEE OWNER:
	 	 	 
	 	Moody National Cedar-Newark Holding, LLC,

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

 

Signature
Page to Purchase and Sale Agreement

 

    	 

    	 

    

 

IN WITNESS WHEREOF, Seller and Purchaser
have caused this Agreement to be executed in their names by their respective duly authorized representatives.

 

	 	MOODY MT:
	 	 	 
	 	Moody National TPS Newark MT, LLC,’
a Delaware

limited liability company
	 	 	 
	 	By:	
	 	Name:	Brett C. Moody
	 	Title:	President

 

Signature
Page to Purchase and Sale Agreement

 

    	 

    	 

    

 

IN WITNESS WHEREOF, Seller and Purchaser
have caused this Agreement to be executed in their names by their respective duly authorized representatives.

 

	 	PURCHASER:
	 	 	 
	 	HOLIDAY GARDEN SF CORP., 

a California corporation
	 	 	 
	 	By:	 
	 	Name:	DONY TSENG-TUNG
    CHEN
	 	Its:	VICE PRESIDENT

 

Signature
Page to Purchase and Sale Agreement

 

    	 

    	 

    

 

The Title Company Agent hereby acknowledges
receipt of a fully executed copy of the Agreement as of the 20th day of July, 2015 (the “Effective Date”),
and agrees to accept, hold and disburse the Deposits in accordance with the provisions of this Agreement and the Escrow Agreement.
The undersigned acknowledges that it is not a party to this Agreement and that it is executing below solely for the purpose of
the foregoing acknowledgment and agreement.

 

	 	TITLE COMPANY:
	 	 	 
	 	CHICAGO TITLE COMPANY.
	 	 	 
	 	By:	 
	 	Name:	Terina J. Kung
	 	Title:	AVP, Senior Commercial Escrow Officer

 

 

 

Title Company Joinder for Purchase
and Sale Agreement

 

    	 

    	 

    

 

EXHIBIT A

LEGAL DESCRIPTION

 

Parcel 1, Parcel Map 7179, filed April
1, 1999, in Book 244 of Maps, Pages 24 and 25, Alameda County Records.

 

 

 

 

 

 

 

Exhibit A, Page 1

 

    	 

    	 

    

 

EXHIBIT B

 

Form of Grant Deed

 

RECORDING REQUESTED BY AND

WHEN RECORDED
MAIL TO:

 

Attn:

 

MAIL TAX STATEMENTS TO:

See above.

 

GRANT DEED

 

The undersigned grantor declares the Documentary
Transfer Tax is $_______________and City Tax is $__________and is computed on the full value of the interest or property conveyed.
The property is located in the City of Newark and County of Alameda, State of California.

 

FOR VALUE RECEIVED,
_____________________________________ (“Grantor”), hereby grants to _____________________
(“Grantee”), that certain real property (the “Property”) situated in the City of Newark, County of
Alameda, State of California, described in Exhibit A attached hereto and incorporated by reference, together with all
right, title and interest of, in and to all buildings and improvements, easements and rights-of-way now located or hereafter
constructed on the Property.

 

This conveyance is made and accepted subject
to all real property taxes and assessments, unrecorded leases, all matters of record and all matters that would be reflected on
an accurate survey or shown by a physical inspection of the Property, as of the date hereof.

 

IN WITNESS WHEREOF,
the undersigned Grantor has executed this Grant Deed as of ____________________ ,2015.

 

	GRANTOR:	 
	 	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 

 

 

 

 

 

 

Exhibit
B,  Page 1

 

    	 

    	 

    

 

 

EXHIBIT A

 

LEGAL DESCRIPTION

 

The Land referred to is situated in the
City of Newark, Alameda County, State of California, and is described as follows:

 

 

 

 

 

 

Exhibit
B,  Page 2

 

    	 

    	 

    

 

A notary public or other officer completing
this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and
not the truthfulness, accuracy, or validity of that document.

 

ACKNOWLEDGMENT OF NOTARY PUBLIC

 

STATE OF CALIFORNIA                       )

 

COUNTY OF__________________)

 

On________________________, before
me,___________________________, Notary Public, personally appeared __________________________, who proved to me on the basis
of satisfactory evidence to be the person(s) whose name (s) is/are subscribed to the within instrument and acknowledged to me
that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the
instrument, the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument.

 

I certify under PENALTY OF PERJURY under
the laws of the State of California that the foregoing paragraph is true and correct.

 

WITNESS my hand and official seal. 

 

	 	 
	NOTARY
PUBLIC	 

 

    	 

    	 

    

 

EXHIBIT C

 

FORM OF BILL OF SALE AND GENERAL
ASSIGNMENT

 

I.

 

Bill of Sale

 

For good and valuable consideration,
the receipt of which is hereby acknowledged, MOODY NATIONAL CEDAR NEWARK HOLDING, LLC, a Delaware limited liability company
and MOODY NATIONAL TPS NEWARK MT, LLC, a Delaware limited liability company (collectively, the “Seller” or
“Assignor”“), does hereby sell, transfer and convey to ____________________ (the
“Purchaser” or “Assignee”), all of the Tangible Personal Property (as defined in the
Purchase Agreement), owned by Seller and currently used in the operation, repair and maintenance of the improvements located
upon the real property described in Exhibit “A” attached hereto.

 

Seller
does hereby covenant with Purchaser that Seller is the lawful owner of such Tangible Personal Property, free and clear of
all liens, encumbrances, security agreements and financing statements, that such Tangible Personal Property is owned and not
leased by Seller and that Seller has good right to sell the same as aforesaid and will warrant and defend the title thereto
unto Purchaser, its successors and assigns, against the claims and demands of all persons. Seller makes no representation or
warranty as to the condition or fitness of any such property, except as may be expressly provided in the Agreement for
Purchase and Sale entered into by Seller and Purchaser dated_______________, 2015 (the “Purchase
Agreement”). All capitalized terms used but not defined herein shall have the meanings ascribed to them in the
Purchase Agreement.

 

II.

 

General Assignment

 

1.         Assignment of Intangible Personal
Property. Assignor hereby assigns, transfers and conveys to Assignee all of Assignor’s right, title and interest in and
to all of the Intangible Personal Property, excluding the Hotel Agreements. The Advance Bookings, which are a part of the Intangible
Personal Property are set forth in Exhibit “B”, and Assignee accepts and agrees to assume the obligations
of Assignor under the Advance Bookings occurring after the Effective Date (as hereinafter defined).

 

2.
         Effective Date. The “Effective Date” of this Assignment shall
be the date that Assignee acquires fee simple interest in and to the Real Property described in Exhibit “A”.

 

3.
        Consistency with Purchase Agreement. Nothing in this Assignment shall
be construed to modify or limit any provisions in the Purchase Agreement and in the event of any inconsistency between this
Assignment and the Purchase Agreement, the latter shall govern and control.

 

4.         Miscellaneous.

 

 

 

Exhibit
C, Page 1

 

    	 

    	 

    

 

A.
         Attorneys’ Fees. In the event of any action between Assignor
and Assignee seeking enforcement of any of the terms and conditions to this Assignment, the prevailing Party in such action, whether
by fixed judgment or settlement, shall be entitled to recover, in addition to damages, injunctive or other relief, its actual
costs and expenses, including, but not limited to, actual attorneys’ fees, court costs and expert witness fees. Such costs
shall include attorneys’ fees, costs and expenses incurred in (a) post-judgment motions, (b) contempt proceedings, (c) garnishment,
levy and debtor and third-party examination, (d) discovery, and (e) bankruptcy litigation.

 

B.          Inurement.
This Assignment shall inure to the benefit of Assignor and Assignee, and their respective heirs, assigns and successors in interest.

 

C.          Counterparts.
This Assignment may be signed by the parties in different counterparts and the signature pages combined to create a document
binding on all parties.

 

D.
         Governing Law. This Assignment shall be governed by and construed in accordance with the laws of the State of California.

 

 

 

 

 

 

Exhibit
C,  Page 2

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have executed this Bill of Sale and General Assignment as of the date first above written.

 

	SELLER/ASSIGNOR	 	 PURCHASER/ASSIGNEE
	 	 	 
	By:	 	 	 By:	
	 	 	 	 	 
	Name:	 	 	 Name:	 
	 	 	 	 	 
	Title:	 	 	Title:	 

  

 

 

 

 

 

Exhibit
C,  Page 3

 

    	 

    	 

    

 

Exhibit
A to Bill of Sale and General Assignment

 

(Legal
Description)

 

 

 

 

 

 

Exhibit
C, Page 4

 

    	 

    	 

    

 

Exhibit
B to Bill of Sale and General Assignment

 

(Bookings)

 

 

 

 

 

 

Exhibit
C,  Page 5

 

    	 

    	 

    

 

EXHIBIT D

 

FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT

 

THIS
ASSIGNMENT AND ASSUMPTION AGREEMENT (this “Assignment”) is made and entered into this ____ day of____________,
2015, by and between MOODY NATIONAL CEDAR NEWARK HOLDING, LLC, a Delaware limited liability company and MOODY NATIONAL TPS
NEWARK MT, LLC, a Delaware limited liability company (collectively, the “Assignor”), and
[__________________________] (“Assignee”).

 

R E C I T A L S:

 

This Assignment is made with reference
to the following facts and intentions of the parties:

 

A.        Concurrently
with the delivery of this Assignment, Assignor has conveyed to Assignee and Assignee has acquired from Assignor a fee simple estate
in and to certain real property located in Newark, California, more particularly described in Exhibit “A”
attached hereto (the “Real Property”‘) pursuant to that certain Agreement for Purchase and Sale dated_______________,
2015 (the “Purchase Agreement”‘).

 

B.         Assignor, in connection with the orderly
operation of the Real Property, has entered into certain service, supply, maintenance and other contracts, copies of which have
been given to and approved by Assignee. In accordance with the terms and conditions of the Purchase Agreement, Assignor has agreed
to assign to Assignee and Assignee has agreed to accept the assignment of all contracts which Assignee elects to assume. A schedule
of all such contracts Assignee has elected to assume are attached hereto as Exhibit “B” (collectively,
“Hotel Agreements”).

 

NOW, THEREFORE, in  consideration of the
foregoing and for other good and valuable consideration, the parties agree as follows:

 

1.          Assignment
of Hotel Agreements. Assignor hereby assigns, transfers and conveys to Assignee all of Assignor’s right, title and interest
in and to all of the Hotel Agreements set forth in Exhibit “B”, and Assignee accepts and agrees to assume
the obligations of Assignor under the Hotel Agreements occurring after the Effective Date (as hereinafter defined).

 

2.          No Liability; Indemnification.
This Assignment and its acceptance by Assignee shall not impose any liability on Assignee for any default by Assignor under the
Hotel Agreements occurring prior to the Effective Date. Assignor shall indemnify, protect, defend and hold Assignee harmless from
any and all losses, demands, damages, claims, liabilities, costs and expenses, including, but not limited to, attorneys’
fees arising out of or in connection with any default by Assignor under the Hotel Agreements occurring prior to the Effective Date.
Assignee shall indemnify, protect, defend and hold Assignor harmless from any and all losses, damages, claims, liabilities, costs
and expenses including, without limitation, attorneys’ fees, arising out of or in connection with any default by Assignee
under the Hotel Agreements that occurs after the Effective Date.

 

3.          Effective Date. The “Effective
Date” of this Assignment shall be the date that Assignee acquires fee simple interest in and to the Real Property described
in Exhibit “A”.

 

 

Exhibit
D,  Page 1

 

    	 

    	 

    

 

4.          Consistency with Purchase Agreement.
Nothing in this Assignment shall be construed to modify or limit any provisions in the Purchase Agreement and in the event of any
inconsistency between this Assignment and the Purchase Agreement, the latter shall govern and control.

 

5.          Miscellaneous.

 

   A.         Attorneys’
Fees. In the event of any action between Assignor and Assignee seeking enforcement of any of the terms and conditions to this
Assignment, the prevailing Party in such action, whether by fixed judgment or settlement, shall be entitled to recover, in addition
to damages, injunctive or other relief, its actual costs and expenses, including, but not limited to, actual attorneys’
fees, court costs and expert witness fees. Such costs shall include attorneys’ fees, costs and expenses incurred in (a)
post-judgment motions, (b) contempt proceedings, (c) garnishment, levy and debtor and third-party examination, (d) discovery,
and (e) bankruptcy litigation.

   B.
        Inurement. This Assignment shall inure to the benefit of Assignor and Assignee,
and their respective heirs, assigns and successors in interest.

   C.        
Counterparts. This Assignment may be signed by the parties in different counterparts and the signature pages combined to
create a document binding on all parties.

   D.         Governing Law. This Assignment
shall be governed by and construed in accordance with the laws of the State of California.

 

 

 

 

Exhibit
D,  Page 2

 

    	 

    	 

    

 

IN WITNESS WHEREOF, the parties hereto
have executed this Assignment as of the date first above written.

 

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

 

 

 

 

 

 

Exhibit
D,  Page 3

 

    	 

    	 

    

 

Exhibit
A to Assignment and Assumption Agreement

 

(Legal
Description)

 

 

 

 

 

 

Exhibit
D,  Page 4

 

    	 

    	 

    

 

Exhibit
B to Assignment and Assumption Agreement

 

(List
of Hotel Agreements)

 

 

 

 

 

 

Exhibit
D,  Page 5

 

    	 

    	 

    

 

EXHIBIT
E

 

FIRPTA Affidavit

 

Section 1445 of the Internal Revenue Code
provides that a transferee of a U.S. real property interest must withhold tax if the transferor is a foreign person. To inform
the transferee that withholding of tax is not required upon the disposition of a United States real property interest by the undersigned
(“Seller”), Seller hereby certifies:

 

	1.	Seller is not a foreign corporation, foreign partnership, foreign trust or foreign estate (as those terms are defined in the Internal
Revenue Code and the Income Tax Regulations);

 

	2.	Seller’s U.S. employer identification number is__________________________;
    and

 

	3.	Seller’s office address is:

	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

Seller understands that this certification
may be disclosed to the Internal Revenue Service by the transferee and that any false statement contained herein could be punished
by fine, imprisonment or both.

 

Under penalties of perjury I declare that
I have examined this certification and to the best of my knowledge and belief it is true, correct and complete, and I further declare
that I have authority to sign this document on behalf of Seller.

 

	 	 
	 	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 

 

 

 

 

Exhibit
E,  Page 1

 

    	 

    	 

    

 

EXHIBIT F

 

GUARANTY

 

THIS
GUARANTY (this “Guaranty”) is made as of_____________, 2015, by ________________________
(“Guarantor”), in favor of  _____________________________ (“Purchaser”).

 

RECITALS

 

A.       
Concurrently with the delivery of this Guaranty, MOODY NATIONAL CEDAR NEWARK HOLDING, LLC, a Delaware limited liability company
and MOODY NATIONAL TPS NEWARK MT, LLC, a Delaware limited liability company (collectively, the “Seller”), have
conveyed to Purchaser and Purchaser has acquired from Seller a fee simple estate in and to certain real property located in Newark,
California, more particularly described in Exhibit “A” attached hereto (the “Real
Property”) pursuant to that certain Agreement for Purchase and Sale dated_______________, 2015 (the “Purchase
Agreement”). Any capitalized terms used herein but not defined shall have the meaning ascribed to such terms in the
Purchase Agreement.

 

B.
        Pursuant to Section 9.4(b) of the Purchase Agreement, Seller has agreed to
reimburse or pay Purchaser for certain obligations of Seller set forth therein subject to Seller’s Post Closing
Liability Floor and Seller’s Post-Closing Liability Cap.

 

C.         Guarantor is the parent company of Seller
and has a financial interest in Seller; and

 

D.         Purchaser would not have executed the
Purchase Agreement if Guarantor did not execute and deliver to Purchaser this Guaranty.

 

NOW, THEREFORE, Guarantor does hereby absolutely,
presently, unconditionally and irrevocably guaranty the prompt payment by Seller of all of Seller obligations under Section 9.4(b)
of the Purchase Agreement subject to Seller’s Post-Closing Liability Floor and Seller’s Post-Closing Liability Cap
for that period commencing on the date of this Guaranty and ending twelve (12) months thereafter (the “Guaranteed Obligations”),
and further agrees as follows:

 

1.          Guarantor hereby covenants and agrees
with Purchaser that if Seller shall default on any of the Guaranteed Obligations, Guarantor shall forthwith upon demand pay such
sums and any arrears thereof to Purchaser in legal currency of the United States of America for payment of public and private debts;
provided, however, in no event shall Guarantor’s liability for any of the Guaranteed Obligations exceed the total sum of
$980,000.00 which amount shall be inclusive of any amounts paid by Seller under the Purchase Agreement.

 

2.          The liability of
Guarantor under this Guaranty is a guaranty of payment and not of collectability, and is not conditioned or contingent upon the
genuineness, validity, regularity or enforceability of the Purchase Agreement or the pursuit by Purchaser of any remedies which
it now has or may hereafter have with respect thereto, at law, in equity or otherwise.

 

Exhibit
F,  Page 1

    	 

    	 

    

 

3.          Guarantor hereby waives and agrees not
to assert or take advantage of to the extent permitted by law: (i) notice of acceptance of this Guaranty; (ii) any right to require
Purchaser to first seek payment from Seller; (iii) any statute of limitations affecting Guarantor’s liability hereunder or
the enforcement thereof; (iv) any right or defense that may arise by reason of the incapability, lack of authority, death or disability
of Seller or any other person; and (v) all principles or provisions of law which conflict with the terms of this Guaranty.

 

4.          Guarantor agrees that Purchaser may
enforce this Guaranty without the necessity of proceeding against Seller or any other guarantor.

 

	 		5.       (a)       Guarantor agrees that nothing contained herein
                                               shall prevent Purchaser from suing on the Purchase Agreement or from exercising any rights available to it thereunder and
                                               that the exercise of any of the aforesaid rights shall not constitute a legal or equitable discharge of Guarantor.
                                               Without limiting the generality of the foregoing, Guarantor hereby expressly waives any and all benefits under California
                                               Civil Code §§ 2809, 2810, 2819, 2845, 2847, 2848, 2849 and 2850.

 

			          (b)        Guarantor agrees that Guarantor shall have no right of subrogation against Seller unless
                                                                            and until the Guaranteed Obligations, or the portion thereof paid by Guarantor, have been paid in full.

 

			           (c)        The obligations of Guarantor under this Guaranty shall not be altered, limited or
affected by any case, voluntary or involuntary, involving the bankruptcy, insolvency, receivership, reorganization, liquidation
or arrangement of Seller or any defense which Seller may have by reason of order, decree or decision of any court or administrative
body resulting from any such case.

 

6.          Any notice, statement, demand, consent,
approval or other communication required or permitted to be given, rendered or made by either party to the other, pursuant to this
Guaranty or pursuant to any applicable law or requirement of public authority, shall be in writing (whether or not so stated elsewhere
in this Guaranty) and shall be deemed to have been properly given, rendered or made only if hand-delivered or sent by overnight
courier, and shall be deemed to have been given, rendered or made on the day it is delivered. By giving notice as provided above,
either party may designate a different address for notices, statements, demands, consents, approvals or other communications intended
for it.

 

	 	To Guarantor:	 
	 		 
	 	Moody National REIT I, Inc.	 
	 	c/o Moody National Companies	 
	 	6363 Woodway, Suite 110	 
	 	Houston, Texas 77057	 
	 	Attn: Brett Moody	 
	 	Telephone: (713) 977-7500	 

	 	Facsimile: (713) 977-7505	 
	 	bmoody@,moodynational .com	 

 

 

Exhibit
F,  Page 2

 

    	 

    	 

    

	 	 	 
	 	With a copy to:	 
	 	 	 
	 	Sneed Vine & Perry, P.C.	 
	 	900 Congress, Suite 300	 
	 	Austin, Texas 78701	 
	 	Attn: Adam S. Wilk/Kasi M. Moeskau	 
	 	Telephone: (512) 476-6955	 
	 	Facsimile: (512) 476-1825	 
	 	awilk(g),sneedvine.com	 
	 	kmoeskau@sneedvine.com	 
	 	 	 
	 	To Purchaser:	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

  

7.          This Guaranty shall be binding upon
Guarantor and Guarantor’s heirs, representatives, administrators, executors, successors and assigns and shall inure to the
benefit of and shall be enforceable by Purchaser, its successors, endorsees and assigns.

 

8.          This Guaranty shall be governed by and
construed in accordance with the laws of the State of California, and in a case involving diversity of citizenship, shall be litigated
in and subject to the jurisdiction of the courts of California.

 

9.          Every provision of this Guaranty is
intended to be severable. In the event any term or provision hereof is declared to be illegal or invalid for any reason whatsoever
by a court of competent jurisdiction, such illegality or invalidity shall not affect the balance of the terms and provisions hereof,
which terms and provisions shall remain binding and enforceable.

 

10.        This Guaranty may be executed in any
number of counterparts each of which shall be deemed an original and all of which shall constitute one and the same Guaranty with
the same effect as if all parties had signed the same signature page. Any signature page of this Guaranty may be detached from
any counterpart of this Guaranty and re-attached to any other counterpart of this Guaranty identical in form hereto but having
attached to it one or more additional signature pages.

 

IN WITNESS WHEREOF, Guarantor has executed
this Guaranty as of the day and year first above written

 

	 	GUARANTOR
	 	 
	 	 

 

 

 

Exhibit
F,  Page 3

 

    	 

    	 

    

 

EXHIBIT G

 

PROCEDURE AND METHOD OF PRORATION

AND
OTHER ADJUSTMENTS

 

Prior to the Closing, Seller and Purchaser
shall jointly prepare a proposed closing statement containing the parties’ reasonable estimate of the items requiring proration
and adjustment under Section 6.6 and other applicable Sections of this Agreement.

 

Post-Closing Adjustments.

 

(j)           Except for prorations of taxes and
rents, which shall be adjusted within fifteen (15) business days of receipt of the tax bill for the tax year in which the Closing
occurs, as soon as reasonably practicable after the Closing but in no event later than one hundred eighty (180) days after the
Closing (the “True Up Period”), Seller and Purchaser acting reasonably and in good faith, shall reconcile between
themselves, outside of Escrow, the amounts to be prorated pursuant to this Agreement, using any updated information with respect
to matters then available. During the True Up Period each Party shall provide the other with reasonable access to the books, records,
computer runs and other documents relating to the Hotel which contain information relevant to completing the reconciliation. Purchaser
will prepare and deliver to Seller for its review and approval, which shall not be unreasonably withheld, conditioned or delayed,
a statement of prorations (the “Final Statement”) within one hundred eighty (180) days after the Closing, and
the Party in whose favor the original incorrect adjustment or error was made (“Adjusting Party”) shall pay to
the other Party (“Requesting Party”) the sum necessary to correct such prior incorrect adjustment or error within
ten (10) days after completion of the Final Statement. Following completion of adjustments pursuant to the Final Statement and
any subsequent adjustment for taxes and rents, such adjustment shall be final and no further adjustment to the prorations or the
Purchase Price shall be made.

 

(k)
         In the case of a dispute involving the post-Closing adjustment described in
(a) above, the Parties shall attempt to resolve such dispute, but if for any reason such dispute is not resolved by the date
that is thirty (30) days after the delivery of the original notice of the claimed adjustment by Purchaser or Seller, then the
Parties shall submit such dispute to HVS or such other firm as may be mutually agreed between Seller and Purchaser
(“Outside Accountants”), and the determination of the Outside Accountants, which shall be made within a
period of fifteen (15) days after such submittal by the parties, shall be conclusive. The fees and expenses of the Outside
Accountants shall be paid equally by Purchaser and Seller. At such time as the amount of any adjustment or dispute shall be
determined (either by agreement or by determination of the Outside Accountants), any amount that shall be payable by
either Party to the other Party as a result of such adjustment or determination shall be paid within ten (10) business days
after the date on which such agreement or determination shall have been made.

 

Exhibit
G,  Page 1

 

    	 

    	 

    

 

Schedule 3.7 

Schedule of Litigation

 

None

 

 

 

 

 

 

Schedule 3.7

 

    	 

    	 

    

 

Schedule 3.8

Notice of Non-Compliance
with Governmental Authorities

 

None

 

 

 

 

 

 

Schedule 3.8

 

    	 

    	 

    

 

Schedule 3.9

List of Environmental Reports

 

Phase I Environmental Site Assessment,
EBI Project No. 11140951, prepared by EBI Consulting dated March 4, 2014.

 

 

 

 

 

 

Schedule 3.9

 

    	 

    	 

    

 

Schedule 3.11

List of Hotel Agreements

 

Elevator - ThyssenKrupp

Fire & Safety
- Tyco

Landscaping - True Green

Pest Control - Ecolab

Television - World Cinema

Internet - BluePrint

Pool - Ecolab

Scent Program
- ScentAir

Copy Machine - Xerox

 

 

 

 

 

 

Schedule 3.11

 

    	 

    	 

    

 

Schedule 3.16

Description of Leased
Property

 

None

 

 

 

 

 

 

Schedule 3.16

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00247-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00247-of-00352.parquet"}]]