Document:

Moody National REIT, I Inc. POS AM

EXHIBIT 10.114

 

Loan No. 31-0926091

 

ENVIRONMENTAL INDEMNITY AGREEMENT

 

THIS ENVIRONMENTAL INDEMNITY
AGREEMENT (this “Agreement”) made as of the 19th day of November, 2014 by MOODY NATIONAL RESEARCH-AUSTIN
HOLDING, LLC, a Delaware limited liability company, having an office at 6363 Woodway, Suite 110, Houston, Texas 77057 (“Borrower”)
and MOODY NATIONAL REIT I, INC., a Maryland corporation, having an office at 6363 Woodway, Suite 110, Houston, Texas
77057 (“Guarantor”; Borrower and Guarantor, individually and/or collectively, as the context may require, “Indemnitor”),
in favor of WELLS FARGO BANK, NATIONAL ASSOCIATION, having an address at Wells Fargo Center, 1901 Harrison Street, 2nd
Floor, MAC A0227-020, Oakland, California 94612 (together with its successors and/or assigns, “Indemnitee”)
and other Indemnified Parties (defined below).

 

RECITALS:

 

A.        Indemnitee is prepared
to make a loan (the “Loan”) to Borrower in the principal amount of $19,000,000.00 pursuant to a Loan Agreement
of even date herewith between Borrower and Indemnitee (as the same may be amended, restated, replaced, supplemented or otherwise
modified from time to time, the “Loan Agreement”). Capitalized terms not otherwise defined herein shall have
the meaning set forth in the Loan Agreement.

 

B.        Indemnitee is unwilling
to make the Loan unless Indemnitor agrees to provide the indemnification, representations, warranties, covenants and other matters
described in this Agreement for the benefit of the Indemnified Parties.

 

C.        Indemnitor is entering
into this Agreement to induce Indemnitee to make the Loan.

 

AGREEMENT

 

NOW THEREFORE, in
consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
Indemnitor hereby represents, warrants, covenants and agrees for the benefit of the Indemnified Parties as follows:

 

1.        ENVIRONMENTAL
REPRESENTATIONS AND WARRANTIES. Except as otherwise disclosed by that certain Phase I environmental report (or Phase II environmental
report, if required) in respect of the Property delivered to Indemnitee (referred to below as the “Environmental Report”),
a copy of which has been provided to Indemnitee, (a) to Indemnitor’s knowledge, there are no Hazardous Substances (defined
below) or underground storage tanks in, on, or under the Property, except those that are both (i) in compliance with all Environmental
Laws (defined below) and with permits issued pursuant thereto and (ii) fully disclosed to Indemnitee in writing pursuant to the
Environmental Report; (b) to Indemnitor’s knowledge, there are no past, present or threatened Releases (defined below) of
Hazardous Substances in, on, under or from the Property which have not been fully remediated in accordance with Environmental Law;
(c) to Indemnitor’s knowledge, there is no threat of any Release of Hazardous Substances migrating to the Property; (d) to
Indemnitor’s knowledge, there is no past or present non-compliance with Environmental Laws, or with permits issued pursuant
thereto, in connection with the Property which has not been fully remediated in accordance with Environmental Law; (e) Indemnitor
does not know of, and has not received, any written notice or other written communication from any Person (including but not limited
to a governmental entity) relating to Hazardous Substances or Remediation (defined below) thereof, of possible liability of any
Person pursuant to any Environmental Law, other environmental conditions in connection with the Property, or any actual or potential
administrative or judicial proceedings in connection with any of the foregoing; (f) Indemnitor has truthfully and fully provided
to Indemnitee, in writing, any and all information relating to conditions in, on, under or from the Property that is known to Indemnitor
and that is contained in files and records of Indemnitor, including but not limited to any reports relating to Hazardous Substances
in, on, under or from the Property and/or to the environmental condition of the Property; (g) to Indemnitor’s knowledge,
the Property currently displays no evidence of water infiltration or water damage, (h) to Indemnitor’s knowledge, there are
no prior or current complaints by tenants at the Property regarding water infiltration or water damage or leaks or odors related
thereto, and (i) the Property currently displays no conspicuous evidence of the growth of Microbial Matter.

 

    	 

    	 

    

 

2.        ENVIRONMENTAL
COVENANTS. Indemnitor covenants and agrees that: (a) all uses and operations on or of the Property, whether by Indemnitor
or any other Person, shall be in compliance with all Environmental Laws and permits issued pursuant thereto; (b) there shall
be no Releases of Hazardous Substances in, on, under or from the Property; (c) there shall be no Hazardous Substances in,
on, or under the Property, except those that are both (i) in compliance with all Environmental Laws and with permits issued pursuant
thereto (to the extent such permits are required by Environmental Law) and (ii) fully disclosed to Indemnitee in writing; (d) Indemnitor
shall keep the Property free and clear of all liens and other encumbrances imposed pursuant to any Environmental Law, whether due
to any act or omission of Indemnitor or any other Person (the “Environmental Liens”); (e) Indemnitor shall,
at its sole cost and expense, fully and expeditiously cooperate in all activities pursuant to Paragraph 3 of this Agreement, including
but not limited to providing all relevant information and making knowledgeable Persons available for interviews; (f) Indemnitor
shall, at its sole cost and expense, comply with all reasonable written requests of Indemnitee to (i) effectuate Remediation of
any condition (including but not limited to a Release of a Hazardous Substance) in, on, under or from the Property; (ii) comply
with any Environmental Law; (iii) comply with any directive from any governmental authority; and (iv) take any other reasonable
action necessary or appropriate for protection of human health or the environment; (g) Indemnitor shall not do or allow any tenant
or other user of the Property to do any act that materially increases the dangers to human health or the environment, poses an
unreasonable risk of harm to any Person (whether on or off the Property), impairs or may impair the value of the Property, is contrary
to any requirement of any insurer, constitutes a public or private nuisance, constitutes waste, or violates any covenant, condition,
agreement or easement applicable to the Property; (h) Indemnitor shall immediately notify Indemnitee in writing of (A) any presence
or Releases or threatened Releases of Hazardous Substances in, on, under, from or migrating towards the Property; (B) any non-compliance
with any Environmental Laws related in any way to the Property; (C) any actual or potential Environmental Lien; (D) any required
or proposed Remediation of environmental conditions relating to the Property; and (E) any written or oral notice or other communication
of which any Indemnitor becomes aware from any source whatsoever (including but not limited to a governmental entity) relating
in any way to Hazardous Substances or Remediation thereof, possible liability of any Person pursuant to any Environmental Law,
other environmental conditions in connection with the Property, or any actual or potential administrative or judicial proceedings
in connection with anything referred to in this Agreement; (i) upon request by Lender, Borrower shall engage an engineering consultant
reasonably acceptable to Indemnitee each calendar year during the term of the Loan to conduct (and such consultant shall conduct)
a yearly inspection for water damage; (j) upon request by Lender, Borrower shall engage an environmental consultant reasonably
acceptable to Indemnitee each calendar year during the term of the Loan to conduct (and such consultant shall conduct) a yearly
inspection for evidence of the growth of Microbial Matter; (k) Borrower shall immediately adopt a remediation plan reasonably acceptable
to Indemnitee with respect to any water damage or Microbial Matter identified as a result of such yearly environmental and engineering
inspections; (l) Borrower shall undertake any course of action recommended by the Environmental Protection Agency to prevent the
growth of Microbial Matter; and (m) Borrower shall comply with any and all local, state or federal laws, legislation, guidelines
or statutes at any time in effect with respect to Microbial Matter.

 

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3.        INDEMNIFIED
RIGHTS/COOPERATION AND ACCESS. In the event the Indemnified Parties have reason to believe that an environmental hazard exists
on the Property that does not, in the sole discretion of the Indemnified Parties, endanger any tenants or other occupants of the
Property or their guests or the general public or materially and adversely affects the value of the Property, upon reasonable notice
from the Indemnitee, Indemnitor shall, at Indemnitor’s sole cost and expense, promptly cause an engineer or consultant satisfactory
to the Indemnified Parties to conduct any environmental assessment or audit (the scope of which shall be determined in the sole
and absolute discretion of the Indemnified Parties) and take any samples of soil, groundwater or other water, air, or building
materials or any other invasive testing requested by Indemnitee and promptly deliver the results of any such assessment, audit,
sampling or other testing (and Indemnitee and the other Indemnified Parties shall be entitled to rely on such reports and other
results thereof); provided, however, if such results are not delivered to the Indemnified Parties within a reasonable period or
if the Indemnified Parties have reason to believe that an environmental hazard exists on the Property that, in the sole judgment
of the Indemnified Parties, endangers any tenant or other occupant of the Property or their guests or the general public or may
materially and adversely affect the value of the Property, upon reasonable notice to Indemnitor, the Indemnified Parties and any
other Person designated by the Indemnified Parties, including but not limited to any receiver, any representative of a governmental
entity, and any environmental consultant, shall have the right, but not the obligation, to enter upon the Property at all reasonable
times to assess any and all aspects of the environmental condition of the Property and its use, including but not limited to conducting
any environmental assessment or audit (the scope of which shall be determined in the sole and absolute discretion of the Indemnified
Parties) and taking samples of soil, groundwater or other water, air, or building materials, and reasonably conducting other invasive
testing. Indemnitor shall cooperate with and provide the Indemnified Parties and any such Person designated by the Indemnified
Parties with access to the Property.

 

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4.        INDEMNIFICATION.
Indemnitor covenants and agrees, at its sole cost and expense, to protect, defend, indemnify, release and hold Indemnified Parties
harmless from and against any and all Losses (defined below) imposed upon or incurred by or asserted against any Indemnified Parties
and directly or indirectly arising out of or in any way attributable to any one or more of the following: (a) any presence of any
Hazardous Substances in, on, above, or under the Property; (b) any past, present or threatened Release of Hazardous Substances
in, on, above, under or from the Property; (c) any activity by Indemnitor, any Person affiliated with Indemnitor, and any tenant
or other user of the Property in connection with any actual, proposed or threatened use, treatment, storage, holding, existence,
disposition or other Release, generation, production, manufacturing, processing, refining, control, management, abatement, removal,
handling, transfer or transportation to or from the Property of any Hazardous Substances at any time located in, under, on or above
the Property; (d) any activity by Indemnitor, any Person affiliated with Indemnitor, and any tenant or other user of the Property
in connection with any actual or proposed Remediation of any Hazardous Substances at any time located in, under, on or above the
Property, whether or not such Remediation is voluntary or pursuant to court or administrative order, including but not limited
to any removal, remedial or corrective action; (e) any past, present or threatened non-compliance or violations of any Environmental
Laws (or permits issued pursuant to any Environmental Law) in connection with the Property or operations thereon, including but
not limited to any failure by Indemnitor, any Person affiliated with Indemnitor, and any tenant or other user of the Property to
comply with any order of any governmental authority in connection with any Environmental Laws; (f) the imposition, recording or
filing or the threatened imposition, recording or filing of any Environmental Lien encumbering the Property; (g) any administrative
processes or proceedings or judicial proceedings in any way connected with any matter addressed in this Agreement; (h) any past,
present or threatened injury to, destruction of or loss of natural resources in any way connected with the Property caused by Hazardous
Substances or any violation of Environmental Law, including, but not limited to, costs to investigate and assess such injury, destruction
or loss; (i) any acts of Indemnitor, any Person affiliated with Indemnitor, and any tenant or other user of the Property in
arranging for disposal or treatment, or arranging with a transporter for transport for disposal or treatment, of Hazardous Substances
at any facility or incineration vessel containing such or similar Hazardous Substances; (j) any acts of Indemnitor, any Person
affiliated with any Indemnitor, and any tenant or other user of the Property in accepting any Hazardous Substances for transport
to disposal or treatment facilities, incineration vessels or sites from which there is a Release, or a threatened Release of any
Hazardous Substance which causes the incurrence of costs for Remediation; (k) in each case, to the extent caused by Hazardous Substances
or violation of any Environmental Law, any personal injury, wrongful death, or property or other damage arising under any statutory
or common law or tort law theory, including but not limited to damages assessed for private or public nuisance or for the conducting
of an abnormally dangerous activity on or near the Property that are caused by Hazardous Substances or any violation of Environmental
Law; and (l) in each case, to the extent relating to Hazardous Substances or violation of any Environmental Law, any misrepresentation
or inaccuracy in any representation or warranty or material breach or failure to perform any covenants or other obligations relating
to Hazardous Substances and/or Environmental Law pursuant to this Agreement, the Loan Agreement or the Security Instrument. 

 

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5.        DUTY
TO DEFEND AND ATTORNEYS AND OTHER FEES AND EXPENSES. Upon written request by any Indemnified Party, Indemnitor shall defend
same (if requested by any Indemnified Party, in the name of the Indemnified Party) by attorneys and other professionals approved
by the Indemnified Parties. Notwithstanding the foregoing, any Indemnified Parties may, in their sole and absolute discretion,
engage their own attorneys and other professionals to defend or assist them, and, at the option of Indemnified Parties, their attorneys
shall control the resolution of any claim or proceeding, providing that no compromise or settlement shall be entered without Indemnitor’s
consent, which consent shall not be unreasonably withheld. Upon demand, Indemnitor shall pay or, in the sole and absolute discretion
of the Indemnified Parties, reimburse, the Indemnified Parties for the payment of reasonable fees and disbursements of attorneys,
engineers, environmental consultants, laboratories and other professionals in connection therewith.

 

6.        DEFINITIONS.
As used in this Agreement, the following terms shall have the following meanings: The term “Environmental Law”
means any present and future federal, state and local laws, statutes, ordinances, rules, regulations and the like, as well as common
law, relating to protection of human health from exposure to Hazardous Substances, relating to protection of the environment, relating
to Hazardous Substances, relating to liability for or costs of other actual or threatened danger to human health (from exposure
to Hazardous Substances) or the environment. The term “Environmental Law” includes, but is not limited to, the
following statutes, as amended, any successor thereto, and any regulations promulgated pursuant thereto, and any state or local
statutes, ordinances, rules, regulations and the like addressing similar issues: the Comprehensive Environmental Response, Compensation
and Liability Act; the Emergency Planning and Community Right-to-Know Act; the Hazardous Materials Transportation Act; the Resource
Conservation and Recovery Act (including but not limited to Subtitle I relating to underground storage tanks); the Solid Waste
Disposal Act; the Clean Water Act; the Clean Air Act; the Toxic Substances Control Act; the Safe Drinking Water Act; the Occupational
Safety and Health Act; the Federal Water Pollution Control Act; the Federal Insecticide, Fungicide and Rodenticide Act; the Endangered
Species Act; the National Environmental Policy Act; and the River and Harbors Appropriation Act. The term “Environmental
Law” also includes, but is not limited to, any present and future federal, state and local laws, statutes, ordinances,
rules, regulations and the like, as well as common law: conditioning transfer of property upon a negative declaration or other
approval of a governmental authority of the environmental condition of the Property; requiring notification or disclosure of Releases
of Hazardous Substances or other environmental condition of the Property to any Governmental Authority or other Person, whether
or not in connection with transfer of title to or interest in property; imposing conditions or requirements in connection with
permits or other authorization for lawful activity; relating to nuisance, trespass or other causes of action related to the Property,
in each such case, arising from exposure to, or the presence of, Hazardous Substances; or relating to wrongful death, personal
injury, or property or other damage in connection with any physical condition or use of the Property, in each such case, arising
from exposure to, or the presence of, Hazardous Substances.

 

The term “Hazardous
Substances” shall mean any and all substances (whether solid, liquid or gas) defined, listed, or otherwise classified
as pollutants, hazardous wastes, hazardous substances, hazardous materials, extremely hazardous wastes, or words of similar meaning
or regulatory effect under any present or future Environmental Laws or that, by virtue of the presence thereof or exposure thereto,
may have a negative impact on human health or the environment, including but not limited to Microbial Matter, petroleum and petroleum
products, asbestos and asbestos-containing materials, polychlorinated biphenyls, lead, radon, radioactive materials, flammables
and explosives. The foregoing shall be deemed to exclude substances of kinds and in amounts ordinarily and customarily used or
stored in similar properties for the purposes of cleaning or other maintenance or operations, provided the same (i) have been and
continue to be in compliance with all Environmental Laws, (ii) have not and do not result in contamination of the Property and
(iii) have not had and do not otherwise have a Material Adverse Effect.

 

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The term “Indemnified
Parties” includes Indemnitee, any Person who is or will have been involved in the origination of the Loan, any Person
who is or will have been involved with the servicing of the Loan, any Person in whose name the encumbrance created by the Security
Instrument is or will have been recorded, Persons who may hold or acquire or will have held a full or partial interest in the Loan
(including, but not limited to, Investors or prospective Investors in the Securities), as well as custodians, trustees and other
fiduciaries who hold or have held a full or partial interest in the Loan for the benefit of third parties) as well as the respective
directors, officers, shareholders, partners, employees, agents, servants, representatives, contractors, subcontractors, affiliates,
subsidiaries, participants, successors and assigns of any and all of the foregoing (including but not limited to any other Person
who holds or acquires or will have held a participation or other full or partial interest in the Loan), whether during the term
of the Loan or as a part of or following a foreclosure of the Loan and including, but not limited to, any successors by merger,
consolidation or acquisition of all or a substantial portion of Indemnitee’s assets and business).

 

The term “Legal
Action” means any claim, suit or proceeding, whether administrative or judicial in nature.

 

The term “Losses”
includes any losses, damages, costs, fees, expenses, claims, suits, judgments, awards, liabilities (including but not limited to
strict liabilities), obligations, debts, diminutions in value (but only to the extent of any deficiency in respect of the Debt),
fines, penalties, charges, costs of Remediation (whether or not performed voluntarily), amounts paid in settlement, foreseeable
and unforeseeable consequential damages, litigation costs, attorneys’ fees, engineers’ fees, environmental consultants’
fees, and investigation costs (including but not limited to costs for sampling, testing and analysis of soil, water, air, building
materials, and other materials and substances whether solid, liquid or gas), of whatever kind or nature, and whether or not incurred
in connection with any judicial or administrative proceedings, actions, claims, suits, judgments or awards.

 

The term “Microbial
Matter” means fungi or bacterial matter which reproduces through the release of spores or the splitting of cells, including,
but not limited to, mold, mildew, and viruses, whether or not such Microbial Matter is living.

 

The term “Release”
with respect to any Hazardous Substance includes but is not limited to any release, deposit, discharge, emission, leaking, leaching,
spilling, seeping, migrating, injecting, pumping, pouring, emptying, escaping, dumping, disposing or other movement of Hazardous
Substances.

 

The term “Remediation”
includes, but is not limited to, any response, remedial, removal, or corrective action; any activity to clean up, detoxify, decontaminate,
contain or otherwise remediate any Hazardous Substance; any actions to prevent, cure or mitigate any Release of any Hazardous Substance;
any action to comply with any Environmental Laws or with any permits issued pursuant thereto; and any inspection, investigation,
study, monitoring, assessment, audit, sampling and testing, laboratory or other analysis, or evaluation relating to any Hazardous
Substances or to anything referred to herein.

 

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7.        OPERATIONS
AND MAINTENANCE PROGRAMS. If recommended by the Environmental Report or any other assessment or audit of the Property (including,
without limitation, any assessment or audit performed after the date hereof), Indemnitor shall implement and comply with an operations
and maintenance program with respect to the Property, in form and substance reasonably acceptable to Indemnitee, prepared by an
environmental consultant reasonably acceptable to Indemnitee, which program shall address any asbestos-containing material, lead
based paint, mold and/or other applicable conditions that may now or in the future be detected at or on the Property. Without limiting
the generality of the preceding sentence, with respect to such operations and maintenance programs, Indemnitee may require (a)
periodic notices or reports to Indemnitee in form, substance and at such intervals as Indemnitee may reasonably specify, (b) an
amendment to such operations and maintenance program to address changing circumstances, laws or other matters and (c) at Indemnitor’s
sole cost and expense, supplemental examination of the Property by consultants specified by Indemnitee. Indemnitor’s failure
to comply with the foregoing provisions of this Section 7 within thirty (30) days of notice from Indemnitee shall, at Indemnitee’s
option, constitute an Event of Default.

 

8.        UNIMPAIRED
LIABILITY. The liability of Indemnitor under this Agreement shall in no way be limited or impaired by, and Indemnitor hereby
consents to and agrees to be bound by, any amendment or modification of the provisions of the Note, the Loan Agreement, the Security
Instrument or any other Loan Document to or with Indemnitee by Indemnitor or any Person who succeeds Indemnitor or any Person as
owner of the Property. In addition, the liability of Indemnitor under this Agreement shall in no way be limited or impaired by
(i) any extensions of time for performance required by the Note, the Loan Agreement, the Security Instrument or any of the other
Loan Documents, (ii) any sale or transfer of all or part of the Property, (iii) except as provided herein, any exculpatory provision
in the Note, the Loan Agreement, the Security Instrument, or any of the other Loan Documents limiting Indemnitee’s recourse
to the Property or to any other security for the Note, or limiting Indemnitee’s rights to a deficiency judgment against Indemnitor,
(iv) the accuracy or inaccuracy of the representations and warranties made by Indemnitor under the Note, the Loan Agreement, the
Security Instrument or any of the other Loan Documents or herein, (v) the release of Indemnitor or any other Person from performance
or observance of any of the agreements, covenants, terms or conditions contained in any of the other Loan Documents by operation
of law, Indemnitee’s voluntary act, or otherwise, (vi) the release or substitution in whole or in part of any security for
the Note, or (vii) Indemnitee’s failure to record the Security Instrument or file any UCC financing statements (or Indemnitee’s
improper recording or filing of any thereof) or to otherwise perfect, protect, secure or insure any security interest or lien given
as security for the Note; and, in any such case, whether with or without notice to Indemnitor and with or without consideration.

 

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9.        ENFORCEMENT.
Indemnified Parties may enforce the obligations of Indemnitor without first resorting to or exhausting any security or collateral
or without first having recourse to the Note, the Loan Agreement, the Security Instrument, or any other Loan Documents or
any of the Property, through foreclosure proceedings or otherwise, provided, however, that nothing herein shall inhibit or prevent
Indemnitee from suing on the Note, foreclosing, or exercising any power of sale under, the Security Instrument, or exercising any
other rights and remedies thereunder. This Agreement is not collateral or security for the debt of Indemnitor pursuant to the Loan,
unless Indemnitee expressly elects in writing to make this Agreement additional collateral or security for the debt of Indemnitor
pursuant to the Loan, which Indemnitee is entitled to do in its sole and absolute discretion. It is not necessary for an Event
of Default to have occurred pursuant to and as defined in the Security Instrument or the Loan Agreement for Indemnified Parties
to exercise their rights pursuant to this Agreement. Notwithstanding any provision of the Loan Agreement, the obligations pursuant
to this Agreement are exceptions to any non-recourse or exculpation provision of the Loan Agreement; Indemnitor is fully and personally
liable for such obligations, and such liability is not limited to the original or amortized principal balance of the Loan or the
value of the Property.

 

10.        SURVIVAL.
The obligations and liabilities of Indemnitor under this Agreement shall fully survive indefinitely notwithstanding any termination,
satisfaction, assignment, entry of a judgment of foreclosure, exercise of any power of sale, or delivery of a deed in lieu of foreclosure
of the Security Instrument. Notwithstanding the provisions of this Agreement to the contrary, the liabilities and obligations of
Indemnitor hereunder shall not apply to the extent that Indemnitor can prove that such liabilities and obligations arose from Hazardous
Substances that: (a) were not present on or a threat to the Property prior to the date that Indemnitee or its nominee acquired
title to the Property, whether by foreclosure, exercise of power of sale or otherwise (or, if the Property is transferred to an
assuming Transferee in accordance with the provisions of the Loan Agreement, were not present on or a threat to the Property prior
to the date on which such Transferee acquired title to the Property); and (b) were not the result of any act or negligence of Indemnitor
or any of Indemnitor’s affiliates, or any of its or their agents or contractors, acting in their capacities as such.

 

11.        INTEREST.
Any amounts payable to any Indemnified Parties under this Agreement shall become immediately due and payable on demand and, if
not paid within five (5) days of such demand therefor, shall bear interest at the Default Rate.

 

12.        WAIVERS.
 (a) Indemnitor hereby waives (i) any right or claim of right to cause a marshaling of
Indemnitor’s assets or to cause Indemnitee or other Indemnified Parties to proceed against any of the security for the Loan
before proceeding under this Agreement against Indemnitor; (ii) and relinquishes all rights and remedies accorded by applicable
law to indemnitors or guarantors, except any rights of subrogation, reimbursement, contribution or indemnity (collectively, “Cross-Indemnity
Rights”) which Indemnitor may have, provided that the indemnity provided for hereunder shall neither be contingent upon
the existence of any such Cross-Indemnity Rights nor subject to any claims or defenses whatsoever which may be asserted in connection
with the enforcement or attempted enforcement of such Cross-Indemnity Rights including, without limitation, any claim that such
Cross-Indemnity Rights were abrogated by any acts of Indemnitee or other Indemnified Parties; (iii) the right to assert a counterclaim,
other than a mandatory or compulsory counterclaim, in any action or proceeding brought against or by Indemnitee or other Indemnified
Parties; (iv) notice of acceptance hereof and of any action taken or omitted in reliance hereon; (v) presentment for payment, demand
of payment, protest or notice of nonpayment or failure to perform or observe, or other proof, or notice or demand; and (vi) all
homestead exemption rights against the obligations hereunder and the benefits of any statutes of limitations or repose. Notwithstanding
anything to the contrary contained herein, Indemnitor hereby agrees to postpone the exercise of any Cross-Indemnity Rights with
respect to any collateral securing the Loan until the Loan shall have been paid in full.

 

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(b)        INDEMNITOR
HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM, WHETHER
IN CONTRACT, TORT OR OTHERWISE, RELATING DIRECTLY OR INDIRECTLY TO THE LOAN EVIDENCED BY THE NOTE, THE APPLICATION FOR THE LOAN
EVIDENCED BY THE NOTE, THE SECURITY INSTRUMENT, THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS OR ANY ACTS OR OMISSIONS OF ANY INDEMNIFIED
PARTIES IN CONNECTION THEREWITH.

 

13.        SUBROGATION.
Indemnitor shall take any and all reasonable actions, including institution of legal action against third parties, necessary or
appropriate to obtain reimbursement, payment or compensation from such Persons responsible for the presence of any Hazardous Substances
at, in, on, under or near the Property or otherwise obligated by law to bear the cost. Indemnified Parties shall be and hereby
are subrogated to all of Indemnitor’s rights now or hereafter in such claims.

 

14.        INDEMNITOR’S
REPRESENTATIONS AND WARRANTIES. Indemnitor represents and warrants that:

 

(a)        it
has the full power and authority to execute and deliver this Agreement and to perform its obligations hereunder; the execution,
delivery and performance of this Agreement by Indemnitor has been duly and validly authorized; and all requisite action has been
taken by Indemnitor to make this Agreement valid and binding upon Indemnitor, enforceable in accordance with its terms;

 

(b)        its
execution of, and compliance with, this Agreement is in the ordinary course of business of Indemnitor and will not result in the
breach of any term or provision of the charter, by-laws, partnership or trust agreement, or other governing instrument of Indemnitor
or result in the breach of any term or provision of, or conflict with or constitute a default under, or result in the acceleration
of any obligation under, any agreement, indenture or loan or credit agreement or other instrument to which Indemnitor or the Property
is subject, or result in the violation of any law, rule, regulation, order, judgment or decree to which Indemnitor or the Property
is subject;

 

(c)        to
the best of Indemnitor’s knowledge, there is no action, suit, proceeding or investigation pending or threatened against it
which, either in any one instance or in the aggregate, may result in any material adverse change in the business, operations, financial
condition, properties or assets of Indemnitor, or in any material impairment of the right or ability of Indemnitor to carry on
its business substantially as now conducted, or in any material liability on the part of Indemnitor, or which would draw into question
the validity of this Agreement or of any action taken or to be taken in connection with the obligations of Indemnitor contemplated
herein, or which would be likely to impair materially the ability of Indemnitor to perform under the terms of this Agreement;

 

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(d)        it
does not believe, nor does it have any reason or cause to believe, that it cannot perform each and every covenant contained in
this Agreement;

 

(e)        to
the best of Indemnitor’s knowledge, no approval, authorization, order, license or consent of, or registration or filing with,
any governmental authority or other person, and no approval, authorization or consent of any other party is required in connection
with this Agreement; and

 

(f)        this
Agreement constitutes a valid, legal and binding obligation of Indemnitor, enforceable against it in accordance with the terms
hereof.

 

15.        NO
WAIVER. No delay by any Indemnified Party in exercising any right, power or privilege under this Agreement shall operate as
a waiver of any such privilege, power or right.

 

16.        NOTICE
OF LEGAL ACTIONS. Each party hereto shall, within ten (10) Business Days of receipt thereof, give written notice
to the other party hereto of (i) any notice, advice or other communication received in writing from any governmental entity or
any source whatsoever with respect to Hazardous Substances on, from or affecting the Property, and (ii) any legal action brought
against such party or related to the Property, with respect to which Indemnitor could reasonably be expected to have liability
under this Agreement. Such notice shall comply with the provisions of Section 20 hereof.

 

17.        EXAMINATION
OF BOOKS AND RECORDS. Indemnified Parties and their accountants shall have the right to examine the records, books, management
and other papers of Indemnitor which reflect upon its financial condition, at the Property or at the office regularly maintained
by Indemnitor where the books and records are located. Indemnified Parties and their accountants shall have the right to make copies
and extracts from the foregoing records and other papers. In addition, at reasonable times and upon reasonable notice, Indemnified
Parties and their accountants shall have the right to examine and audit the books and records of Indemnitor pertaining to the income,
expenses and operation of the Property during reasonable business hours at the office of Indemnitor where the books and records
are located.

 

18.        SECURITIZATION.
Guarantor hereby acknowledges and agrees that it (a) has read and reviewed the other Loan Documents (including, without limitation,
the Loan Agreement) and is familiar with the terms and provisions thereof and (b) agrees to cooperate with Borrower in fulfilling
any obligation of Borrower or Guarantor under Article 11 of the Loan Agreement.

 

19.        TAXES.
Indemnitor has filed all federal, state, county, municipal, and city income and other tax returns required to have been filed by
it and has paid all taxes and related liabilities which have become due pursuant to such returns or pursuant to any assessments
received by it. Indemnitor has no knowledge of any basis for any additional assessment in respect of any such taxes and related
liabilities for prior years.

 

    	10

    	 

    

 

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

 

21.        DUPLICATE
ORIGINALS; COUNTERPARTS. This Agreement may be executed in any number of duplicate originals and each duplicate original shall
be deemed to be an original. This Agreement may be executed in several counterparts, each of which counterparts shall be deemed
an original instrument and all of which together shall constitute a single Agreement. The failure of any party hereto to execute
this Agreement, or any counterpart hereof, shall not relieve the other signatories from their obligations hereunder.

 

22.        NO
ORAL CHANGE. This Agreement, and any provisions hereof, may not be modified, amended, waived, extended, changed, discharged
or terminated orally or by any act or failure to act on the part of Indemnitor or any Indemnified Party, but only by an agreement
in writing signed by the party against whom enforcement of any modification, amendment, waiver, extension, change, discharge or
termination is sought.

 

23.        HEADINGS,
ETC. The headings and captions of various paragraphs of this Agreement are for convenience of reference only and are not to
be construed as defining or limiting, in any way, the scope or intent of the provisions hereof.

 

24.        NUMBER
AND GENDER/SUCCESSORS AND ASSIGNS. All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine,
neuter, singular or plural as the identity of the Person or Persons referred to may require. Without limiting the effect of specific
references in any provision of this Agreement, the term “Indemnitor” shall be deemed to refer to each and every
Person comprising an Indemnitor from time to time, as the sense of a particular provision may require, and to include the heirs,
executors, administrators, legal representatives, successors and assigns of Indemnitor, all of whom shall be bound by the provisions
of this Agreement, provided that no obligation of Indemnitor may be assigned except with the written consent of Indemnitee. Each
reference herein to Indemnitee shall be deemed to include its successors and assigns. This Agreement shall inure to the benefit
of Indemnified Parties and their respective successors and assigns forever.

 

25.        RELEASE
OF LIABILITY. Any one or more parties liable upon or in respect of this Agreement may be released without affecting the liability
of any party not so released.

 

26.        RIGHTS
CUMULATIVE. The rights and remedies herein provided are cumulative and not exclusive of any rights or remedies which Indemnitee
has under the Note, the Security Instrument, the Loan Agreement or the other Loan Documents or would otherwise have at law or in
equity.

 

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

 

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

 

    	11

    	 

    

 

29.        MISCELLANEOUS.
 (a) Wherever pursuant to this Agreement (i) Indemnitee exercises any right given to it to approve or disapprove, (ii)
any arrangement or term is to be satisfactory to Indemnitee, or (iii) any other decision or determination is to be made by Indemnitee,
the decision of Indemnitee to approve or disapprove, all decisions that arrangements or terms are satisfactory or not satisfactory
and all other decisions and determinations made by Indemnitee, shall be in the sole and absolute discretion of Indemnitee and
shall be final and conclusive, except as may be otherwise expressly and specifically provided herein.

 

(b)        Wherever
pursuant to this Agreement it is provided that Indemnitor pay any costs and expenses, such costs and expenses shall include, but
not be limited to, legal fees and disbursements of Indemnitee, whether retained firms, the reimbursements for the expenses of the
in-house staff or otherwise.

 

(c)        Joint
and Several Liability. If Indemnitor consists of more than one person or party, the obligations and liabilities of each such person
or party hereunder shall be joint and several.

 

[NO FURTHER TEXT ON THIS PAGE]

 

    	12

    	 

    

 

IN WITNESS WHEREOF,
this Environmental Indemnity Agreement has been executed by Indemnitor and is effective as of the day and year first above written.

 

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

 

	 	MOODY NATIONAL REIT I, INC., a
Maryland corporation
	 	 	 
	 	By:	/s/ Brett C. Moody
	 	 	Name: Brett C. Moody
	 	 	Title: PresidentMoody National REIT, I Inc. POS AM

EXHIBIT 10.115

 

AGREEMENT OF PURCHASE AND SALE

 

THIS AGREEMENT OF PURCHASE
AND SALE (this “Agreement”) is made as of the Effective Date, by and among THOSE PARTIES SET FORTH ON SCHEDULE
I, each a Delaware limited liability company (collectively, “Fee Owner”), MOODY NATIONAL HOSPITALITY
PHILLY GREAT VALLEY II, LLC, a Delaware limited liability company (“Moody MT”, Fee Owner and Moody MT collectively
referred to herein as “Seller”), and MOODY NATIONAL REIT I, INC., a Maryland corporation (the
“Purchaser”).

 

RECITALS:

 

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, located at 635 Lancaster Avenue, Frazer, Pennsylvania, 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 Fee Owner 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, development rights and all easements, rights and other interests appurtenant thereto, (the “Land”),
and all buildings and improvements, including a hotel known as the Residence Inn – Philadelphia/ Great Valley, 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.        Moody MT leases the
Hotel from the Fee Owner in accordance with the terms of that certain Master Lease by and between Moody MT and Fee Owner dated
_________ (the “Master Lease”) 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, including the Hotel, 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 the city ledger or other applicable 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        “Assignment
and Assumption Agreement” shall mean an assignment and assumption agreement between Moody MT and Purchaser in a form
mutually acceptable to the parties, whereby Moody MT assigns and Purchaser assumes all of Moody MT’s rights, title and interest
in and to the Hotel Agreements, related to the applicable Property.

 

1.6         “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.

 

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

 

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

 

1.9        “Closing
Date” shall mean Monday, March 2, 2015.

 

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

 

1.11       “Code”
shall have the meaning ascribed to such term in Section 8.21.

 

1.12       “Deed”
shall mean a special warranty deed in a form mutually acceptable to the parties, conveying fee title to the Real Property from
the Fee Owner to Purchaser, subject to all permitted title exceptions and the Master Lease.

 

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 the Title Company.

 

1.16       “Final
Rooms Revenue” shall mean the final night’s room revenue for the Hotel (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.

 

    	2

    	 

    

 

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

 

1.18        “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.

 

1.19        “Hotel”
shall have the definition ascribed to such term in the Recitals.

 

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

 

1.21         “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.

 

1.22        “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.

 

1.23        “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.

 

1.24        “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 7.6(h) hereof, and (5) Advance Bookings, excluding Seller’s
cash on hand, in the bank accounts and invested with financial or other institutions.

 

1.25         “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.

 

1.26        “Knowledge”
shall mean (a) when used with respect to Fee Owner, the actual knowledge of the person making such representation, without any
duty of inquiry or investigation, or (b) when used with respect to Moody MT, the actual knowledge of Brett 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 question, and expressly excludes any constructive or implied
knowledge of such person.

 

1.27        “Land”
shall mean that certain parcel of real estate 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 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

    	 

    

 

1.28         “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).

 

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

 

1.30        “License
Agreement” shall mean that certain Franchise License Agreement dated April 25, 2005 by and between Licensor to Moody
MT with respect to the Hotel.

 

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

 

1.32        “Management
Agreement” shall mean that certain Hotel Management Agreement dated October 1, 2009, by and between Moody MT and the
Manager for the management or operation of the Hotel.

 

1.33        “Manager”
shall mean Moody National Management, L.P.

 

1.34        “Master
Lease” shall have the definition ascribed to such term in the Recitals.

 

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, and Off-Site Facility 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.

 

    	4

    	 

    

 

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

 

1.43       “Purchase
Price” shall mean the amount of ELEVEN MILLION AND NO/100 DOLLARS ($11,000,000.00).

 

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

 

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

 

1.46       “Study
Period” shall mean the period ending at 5:00 p.m. CST on the date that is forty-five (45) days following the Effective
Date.

 

1.47       “Submission
Matters” shall mean all due diligence deliverables provided by Seller to Purchaser.

 

1.48       “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 or leased by Moody MT, including,
without limitation, Moody MT’s interest as lessee with respect to any such leased Tangible Personal Property.

 

1.49       “Title
Company” shall mean Moody National Title Company, L.P., 6363 Woodway, Suite 250, Houston, Texas 77057, or other title
insurance underwriter selected by Purchaser and reasonably acceptable to Seller.

 

1.50       “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 the Property, and Purchaser agrees to purchase the Property, free and clear of all liens and encumbrances,
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 on the Closing Date. The Purchase Price shall be allocated as follows: Real Property: [NEED] and Personal
Property: [NEED].

 

    	5

    	 

    

 

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 THOUSAND
AND NO/100 DOLLARS ($200,000.00) (the “First 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 THOUSAND AND NO/100 DOLLARS ($200,000.00) (the “Second Deposit”)
(the First Deposit and the Second 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 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(c) below, such economic, surveying, engineering, topographic, environmental, marketing and
other test, studies and investigations as Purchaser may deem appropriate. If such tests, studies and investigations warrant, in
Purchaser’s sole, absolute and unreviewable discretion, the purchase of the Property for the purposes contemplated by Purchaser,
then Purchaser shall 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, 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 refunded by the Escrow Agent to Purchaser without any further notice to Escrow
Agent.

 

(b)        Seller hereby agrees
and acknowledge that Moody MT may make available to Purchaser any and all due diligence information related to the Property.

 

(c)        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, except for the discovery of existing conditions of the
Real Property the condition of which are not exacerbated by Purchaser. 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 reasonable terms and conditions as may be proposed 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. The provisions of this Section 2.4(c)
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.

 

    	6

    	 

    

 

(d)        Promptly following
the Effective Date, Seller shall cause the Title Company to furnish to Purchaser, 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) business days following its receipt of the Title Commitment
or within ten (10) business days of any supplement to the Title commitment the Purchaser shall notify the Seller of any matters
identified in the Title Commitment 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 obligations
to municipal or other governmental bodies.

 

(e)        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, 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. Seller certifies
and represents and warrants to Purchaser that the materials delivered to Purchaser in connection with the 3-05 Audit shall be true
and accurate in all material respects and to Seller’s knowledge there are no known fraud or material misrepresentations,
or material subsequent events not reflected in such materials. 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. 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.
The provisions of this Section shall survive Closing or termination of this Agreement.

 

    	7

    	 

    

 

ARTICLE III

SELLERS’ REPRESENTATIONS AND WARRANTIES

 

3.1        Fee Owner Representations
and Warranties. In order to induce Purchaser to enter into this Agreement and to purchase the Property, and to pay the Purchase
Price therefore and except for and subject to the information contained in the Submission Matters, Fee Owner 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.

 

(a)        Organization
and Power. Fee Owner 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 Fee Owner hereunder.

 

(b)        Authorization
and Execution. This Agreement (and all documents contemplated hereby) has been duly authorized by all necessary action on the
part of Fee Owner, has been duly executed and delivered by Fee Owner, constitutes the valid and binding agreement of Fee Owner
and is enforceable against Fee Owner 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 Fee Owner, for and on behalf of Fee Owner, has the authority
to do so.

 

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

 

(d)        Fee Owner Is
Not a “Foreign Person”. Fee Owner 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).

 

(e)        Insurance.
All insurance policies held with respect to the Property by Fee Owner are valid and in full force and effect.

 

(f)        Right to Purchase.
Fee Owner has not granted to any Person other than Purchaser, any right to purchase the Property or any portion thereof or interest
therein.

 

(g)        Condemnation.
There are no any pending or, to Fee Owner’s Knowledge, threatened condemnation or similar proceedings affecting the Property.

 

3.2        Moody MT Representations
and Warranties. In order to induce Purchaser to enter into this Agreement and to purchase the Property, and to pay the Purchase
Price therefore and except for and subject to the information contained in the Submission Matters, Moody MT 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.

 

(a)        Organization
and Power. Moody MT 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 Moody MT hereunder.

 

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(b)        Authorization
and Execution. This Agreement (and all documents contemplated hereby) has been duly authorized by all necessary action on the
part of Moody MT, has been duly executed and delivered by Moody MT, constitutes the valid and binding agreement of Moody MT and
is enforceable against Moody MT 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 Moody MT, for and on behalf of Moody MT, has the authority
to do so.

 

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

 

(d)        Moody MT Is
Not a “Foreign Person”. Moody MT 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).

 

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”).

 

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, 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 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.

 

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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        Condition of
the Property. Purchaser acknowledges the following: (i) Purchaser has been given a reasonable and adequate opportunity to inspect
and investigate the Property and all aspects relating thereto, including all of the physical, environmental and operational aspects
of the Property, either independently or through agents and experts of Purchaser’s choosing, that (ii) Purchaser is a sophisticated
purchaser of Property, and (iii) Purchaser will acquire the Property based upon Purchaser’s own investigation and inspection
of the Property. PURCHASER SPECIFICALLY ACKNOWLEDGES AND AGREES THAT EXCEPT AS EXPRESSLY SET FORTH HEREIN, (i) SELLER IS DISPOSING
OF THE PROPERTY “AS IS, WHERE IS AND WITH ALL FAULTS” AND (ii) NEITHER PURCHASER NOR ANY OTHER PERSON IS RELYING ON
ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND WHATSOEVER, WHETHER ORAL OR WRITTEN, EXPRESS OR IMPLIED, STATUTORY OR OTHERWISE,
FROM SELLER OR ANY DIRECT OR INDIRECT PARTNER, OFFICER, DIRECTOR, TRUSTEE, MEMBER, EMPLOYEE, AFFILIATE, ATTORNEY, AGENT OR BROKER
OF SELLER, AS TO ANY MATTER CONCERNING THE PROPERTY OR SET FORTH, CONTAINED OR ADDRESSED IN ANY MATERIALS RECEIVED BY PURCHASER
OR ANY OF PURCHASER’S AGENTS(INCLUDING, WITHOUT LIMITATION, THE COMPLETENESS THEREOF).

 

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.

 

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(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 Fee Owner shall have executed at Closing a “bring down certificate” with respect to its
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 7.2 below and Purchaser’s authority documents).

 

(d)        License Agreement.
Purchaser and Licensor shall have agreed to the terms of a new license agreement in a form acceptable to Purchaser, in its sole
and absolute discretion.

 

(e)        Management
Agreement. Seller shall have terminated, on or before the Closing Date, the Management Agreement and paid all sums owed
to the Manager in connection with such termination. Seller shall have terminated all Hotel Employees and, if applicable, any employment
plans provided to any Hotel Employee.

 

(f)        Litigation.
There shall be 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 might materially
and adversely affect the Property.

 

(g)        REIT Audit.
Purchaser shall have completed the REIT Audit as contemplated under Section 2.4(f).

 

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, Section 8.1 shall additionally apply.

 

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 the 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.

 

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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, Section 8.2 shall additionally apply.

 

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 through escrow, 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 any permitted title exceptions, the Master Lease and guests in possession.

 

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.

 

(b)        The Bill of Sale and
General Assignment.

 

(c)        The Assignment and
Assumption Agreement.

 

(d)        A bills paid affidavit
verifying that there are no unpaid bills or claims for labor performed or materials furnished to the Property prior to the Closing,
and by which Seller indemnifies and holds Purchaser and Title Company harmless from any loss, liability, cost or expense of Purchaser
resulting from or incident to claims against the Property.

 

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

 

(f)        The FIRPTA Certificate.

 

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

 

(h)        An owner’s title
affidavit and gap indemnity (to the extent required by the Title Company), each duly executed and acknowledged by Seller.

 

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(i)        Such evidence, documents,
affidavits and indemnifications as may be reasonably required by the Title Company and 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, (ii) mechanics’ or materialmens’ liens, (iii) parties in possession, or (iv) any
other matters reasonably required to enable the Title Company to issue the Title Policy and endorsements thereto, in form and content
satisfactory to Purchaser and the Title Company.

 

(j)        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:

 

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

 

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

 

(m)        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,

 

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

 

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.

 

(b)        The Bill of Sale and
General Assignment.

 

(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 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 authorities of the State where the Property is located.

 

(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.

 

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6.5        Closing Costs.
Seller and Purchaser shall equally divide any escrow fee other expenses or similar charges charged by the Title Company. Purchaser
shall pay for the cost of the title search, the premium for a standard Owner’s Title Policy, and the cost of any endorsements
to the Owner’s Title Policy. Purchaser shall pay the costs of all inspections or tests undertaken by Purchaser, including
the cost of any updated survey. Purchaser shall pay all costs associated with financing the acquisition of the Property. Purchaser
shall pay all costs associated with obtain all required approvals from the Licensor and Manager. Purchaser and Seller shall split
all transfer taxes. 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 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 date of Closing, 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 date of Closing provided that the housekeeping
costs 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, personal
property, hotel and any other applicabe taxes 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.

 

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(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 Rooms Revenue
and housekeeping costs for the date of Closing (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 midnight the day prior to Closing, Seller shall check-out
those hotel guests who were previously in occupancy at the Hotel, so as to directly bill and collect all expenses arising prior
to the Closing Date, and then check those hotel guests back into the Hotel so they can be included in the Final Rooms Revenue.
At Closing, the Seller shall sell to the Purchaser in connection with the Hotel, and Purchaser shall purchase from the Seller at
face value: (a) 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, 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 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 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.

 

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
ten (10) days after the Closing, then, in such event, such amounts or issues shall be submitted the Designated Accountant 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.

 

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6.7        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.

 

6.8        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.

 

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

 

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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 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 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. In the event of such termination, the Earnest
Money shall be refunded by the Escrow Agent to Purchaser. 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).

 

    	17

    	 

    

 

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. In the event of such termination, the Earnest Money shall
be refunded by the Escrow Agent to Purchaser. 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 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. 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. Notwithstanding the foregoing, Seller, at and conditioned upon Closing, shall pay Moody National Realty Company, L.P. (“MNRC”)
the sum of Three Hundred Eighty-Five Thousand and No/Dollars ($385,000.00) as a portion of MNRC’s disposition fee. The provisions
of this Section 7.3 shall survive the Closing and any termination of this Agreement.

 

ARTICLE VIII

DEFAULT; TERMINATION RIGHTS; INDEMNIFICATION

 

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 its obligations in accordance with this Agreement,
then Purchaser, as its sole and exclusive remedy shall elect (a) to terminate this Agreement, in which event the Earnest Money
Deposit shall be returned to Purchaser and all other rights and obligations of Seller and 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; or (c) bring an equitable action to enforce the Closing
Obligations by specific performance; provided, with respect to an action for specific performance, (i) Purchaser shall provide
written notice of Purchaser’s intention to enforce the Closing Obligations by specific performance, and (ii) Purchaser’s
suit for specific performance shall be filed against 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, 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.

 

    	18

    	 

    

 

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 after Seller has performed or tendered performance of all of its obligations in accordance with
this Agreement, 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, 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. SELLER AND PURCHASER AGREE THAT SELLER’S
DAMAGES RESULTING FROM 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 8.4 shall survive the termination of this Agreement.

 

ARTICLE IX

MISCELLANEOUS PROVISIONS

 

9.1        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.

 

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

 

9.3        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.

 

9.4        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.

 

    	19

    	 

    

 

9.5        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.

 

9.6        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.

 

9.7        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.

 

9.8        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:	[NEED]
	 	 	 
		 and	[NEED]
	 	 	 
		 If to Purchaser:	Moody National REIT I, Inc.

6363 Woodway, Suite 110

Houston, Texas 77057

Attn: Brett Moody

Telephone: (713) 977-7500

Facsimile: (713) 977-7505

bmoody@moodynational.com
	 	 	 
		 and	Moody National REIT I, Inc.

6363 Woodway, Suite 110

Houston, Texas 77057

Attn: Alex Sims

Telephone: (713) 977-7500

Facsimile: (713) 977-7505

asims@moodynational.com
	 	 	 
	 	 If to Escrow Agent:	Moody National Title Company, L. P.

6363 Woodway, Suite 250

Houston, Texas 77057

Attn: Kay Street

Telephone: (713)977-1700 (Main)

(713)273-6680 (Direct)

Facsimile: (713)977-0117(Fax)

kstreet@moodynational.com

 

    	20

    	 

    

 

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.

 

9.9        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.

 

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

 

9.11        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.

 

9.12        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.

 

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

 

9.14        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.

 

    	21

    	 

    

 

9.15        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.

 

9.16        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.

 

9.17        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.

 

9.18        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.

 

9.19        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.

 

9.20        Exclusivity.
After the Effective Date, Seller and its respective agents, representatives and employees shall immediately cease all marketing
of the Property until such time as this Agreement is terminated and Seller shall not directly or indirectly make, accept, negotiate,
entertain or otherwise pursue any offers for the sale of the Property.

 

    	22

    	 

    

 

9.21        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 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.

 

9.22        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.

 

[SIGNATURE PAGE TO FOLLOW]

 

    	23

    	 

    

 

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

 

	 	FEE OWNER:
	 	 	 
	 	TIC Philly Great Valley 1, LLC, a Delaware limited liability company
	 	 	 
	 	By:	/s/ Mary A. Wilcynski
	 	 	Mary A. Wilcynski,
its sole member

 

    	24

    	 

    

 

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

 

	 	FEE OWNER:
	 	 	 
	 	TIC
Philly Great Valley 2, LLC, a Delaware limited liability company
	 	 	 
	 	By:	/s/ Samuel Tachdjian
	 	 	Samuel Tachdjian,
as husband and wife as

community property,
its sole member
	 	 	 
	 	By:	/s/ Samuel Tachdjian
	 	 	Siegrid Tachdjian,
as husband and wife as

community property,
its sole member

 

    	25

    	 

    

 

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

 

	 	FEE OWNER:
	 	 	 
	 	TIC
Philly Great Valley 3, LLC, a Delaware limited liability company
	 	 	 
	 	By:	/s/ John Raleigh
	 	 	John Raleigh, its
sole member

 

    	26

    	 

    

 

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

 

	 	FEE OWNER:
	 	 	 
	 	TIC Philly Great Valley 4, LLC, a Delaware
limited liability company
	 	 	 
	 	By:	/s/ Yuk S. Yung
	 	 	Yuk S. Yung, as
husband and wife as joint tenants, its sole member
	 	 	 
	 	By:	/s/ Elice Yung
	 	 	Elice Yung, as husband
and wife as joint tenants, its sole member

 

    	27

    	 

    

 

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

 

	 	FEE OWNER:
	 	 	 
	 	TIC
Philly Great Valley 5, LLC, a Delaware limited liability company
	 	 	 
	 	By:	/s/ Riddie M. Bowers
	 	 	Riddie M. Bowers,
Jr., as husband and wife, its sole member
	 	 	 
	 	By:	/s/ Betty L. Bowers
	 	 	Betty L. Bowers,
as husband and wife, its sole member

 

    	28

    	 

    

 

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

 

	 	FEE OWNER:
	 	 	 
	 	TIC
Philly Great Valley 6, LLC, a Delaware limited liability company
	 	 	 
	 	By:	/s/ Joyce A. Wayman
	 	 	Joyce A. Wayman,
as Trustee of the Wayman

Family Bypass Trust
dated March 12, 1991, its sole member

 

    	29

    	 

    

 

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

 

	 	FEE OWNER:
	 	 	 
	 	
TIC Philly Great Valley 7, LLC, a Delaware limited liability company
	 	 	 
	 	By:	/s/ Blasius Brezoczky
	 	 	Blasius Brezoczky, as Trustee of
the Revocable

Inter Vivos Trust dated April 22, 1987, its sole member
	 	 	 
	 	By:	/s/ Kristina Brezoczky
	 	 	Kristina Brezoczky, as Trustee of
the Revocable

Inter Vivos Trust dated April 22, 1987, its sole member

 

    	30

    	 

    

 

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

 

	 	FEE OWNER:
	 	 	 
	 	TIC Philly Great Valley 8, LLC, a Delaware
limited liability company
	 	 	 
	 	By:	/s/ Charles Chung
	 	 	Charles Chung,
as Trustee of the Chung Family

Trust dated January 7, 1994, its sole member
	 	 	 
	 	By:	/s/ Helen Chung
	 	 	Helen Chung, as
Trustee of the Chung Family

Trust dated January 7, 1994, its sole member

 

    	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:
	 	 	 
	 	TIC Philly Great Valley 9, LLC, a Delaware
limited liability company
	 	 	 
	 	By:	/s/ George M. Berberich
	 	 	George M. Berberich,
its sole member

 

    	32

    	 

    

 

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

 

	 	FEE OWNER:
	 	 	 
	 	TIC Philly Great Valley 10, LLC, a Delaware
limited liability company
	 	 	 
	 	By:	/s/ Terry Royalty
	 	 	Terry Royalty, its sole member

 

    	33

    	 

    

 

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

 

	 	FEE OWNER:
	 	 	 
	 	TIC
Philly Great Valley 11, LLC, a Delaware limited liability company
	 	 	 
	 	By:	/s/ Roberta T. Polos
	 	 	Roberta T. Polos, as Trustee of
the Polos 1984

Family Trust, Survivors Trust dated December 17, 1984, its sole member

 

    	34

    	 

    

 

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

 

	 	FEE OWNER:
	 	 	 
	 	TIC
Philly Great Valley 12, LLC, a Delaware limited liability company
	 	 	 
	 	By:	/s/ Marilyn Joan Spiegl
	 	 	Marilyn Joan Spiegl, as Trustee of
the Spiegl Family Trust dated January 13, 1984, its sole member

 

    	35

    	 

    

 

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

 

	 	FEE OWNER:
	 	 	 
	 	TIC
Philly Great Valley 13, LLC, a Delaware limited liability company
	 	 	 
	 	By:	/s/ Samuel Bardakjian
	 	 	Samuel Bardakjian, as Trustee of
the Samuel

and Tatevik Bardakjian Living Trust, its sole member
	 	 	 
	 	By:	/s/ Tatevik Bardakjian
	 	 	Tatevik Bardakjian, as Trustee
of the Samuel

and Tatevik Bardakjian Living Trust, its sole member

 

    	36

    	 

    

 

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

 

	 	FEE OWNER:
	 	 	 
	 	TIC
Philly Great Valley 14, LLC, a Delaware limited liability company
	 	 	 
	 	By:	/s/ Howard W. Moy
	 	 	Howard W. Moy, as Trustee of the
Moy Family

Trust dated May 1, 1995, its sole member
	 	 	 
	 	By:	/s/ Annie Jane M. Moy
	 	 	Annie Jane M. Moy, as Trustee of
the Moy Family

Trust dated May 1, 1995, its sole member

 

    	37

    	 

    

 

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

 

	 	FEE OWNER:
	 	 	 
	 	TIC Philly Great Valley 15, LLC, a Delaware
limited liability company
	 	 	 
	 	By:	/s/ Leslie Pam
	 	 	Leslie Pam, as Trustee of the Leslie
Pam and Ann Petersen Family Trust dated November 25, 1992, its sole member
	 	 	 
	 	By:	/s/ Ann Petersen
	 	 	Ann Petersen, as Trustee of the Leslie Pam and Ann Petersen
Family Trust dated November 25, 1992, its sole member

 

    	38

    	 

    

 

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 GREAT VALLEY H, LLC,

a Delaware limited liability
company
	 	 	 
	 	By: Moody Great Valley, LLC,

a Delaware limited liability company
	 	 	 
	 	By: Moody National Realty Company, L.P.,

a Texas limited partnership
	 	 	 
	 	By: Moody Realty Corporation,

a Texas corporation
	 	 	 
	 	By:	/s/ Brett C. Moody
	 	Name:	 
	 	Title:	 

 

    	39

    	 

    

 

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 Philly Great Valley II, LLC, a Delaware limited liability company
	 	 	 
	 	
By: Moody National Management, L.P., a Texas limited partnership, its sole member
	 	 	 
	 	
By: Moody Management Corporation, a Texas corporation, it general partner
	 	 	 
	 	By:	/s/ Brett C. Moody
	 	 	Brett C. Moody, President

 

    	40

    	 

    

 

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

 

	 	PURCHASER:
	 	 
	 	MOODY NATIONAL REIT I INC., a Maryland corporation
	 	 	 
	 	By:	/s/ Brett C. Moody
	 	 	Brett Moody, President
	 	 	 

 

    	41

    	 

    

 

RECEIPT OF THIS AGREEMENT
IS ACKNOWLEDGED BY PARTNERS TITLE COMPANY, EFFECTIVE AS OF _____________________,
2014.

 

	 	MOODY NATIONAL TITLE COMPANY, L.P.
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    	42

    	 

    

 

SCHEDULE I

 

TIC Philly Great Valley 1,
LLC 

TIC Philly Great Valley 2,
LLC 

TIC Philly Great Valley 3,
LLC 

TIC Philly Great Valley 4,
LLC 

TIC Philly Great Valley 5,
LLC 

TIC Philly Great Valley 6,
LLC 

TIC Philly Great Valley 7,
LLC 

TIC Philly Great Valley 9,
LLC 

TIC Philly Great Valley 10,
LLC 

TIC Philly Great Valley 11,
LLC 

TIC Philly Great Valley 12,
LLC 

TIC Philly Great Valley 13,
LLC 

TIC Philly Great Valley 14,
LLC 

TIC Philly Great Valley 15,
LLC 

Moody National Great Valley
H, LLC

 

    	2

    	 

    

 

EXHIBIT A

 

 

 

 

 

3

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