Document:

Moody National REIT, I Inc. POS AM

EXHIBIT 10.112

 

Loan No. 31-0926091

 

 

 

MOODY NATIONAL RESEARCH-AUSTIN HOLDING,
LLC, as grantor

 

to

 

DANIEL S. HUFFENUS,
as trustee

 

for the benefit
of

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,
as beneficiary

 

_______________________________________________

 

DEED OF TRUST, ASSIGNMENT OF LEASES AND
RENTS, SECURITY AGREEMENT AND FIXTURE FILING

_______________________________________________

 

		Dated:	Made as of November 19, 2014 and effective as of November 20, 2014
	 	 	 
	 	Location:	11617 Research Boulevard

Austin, Texas 78759
	 	County:	Travis
	 	 	 
	 	PREPARED FOR OR BY AND UPON
 RECORDATION RETURN TO:
	 	 	 
	 	Katten Muchin Rosenman LLP
 550 South Tryon Street, Suite 2900
 Charlotte, North Carolina 28202
	 	 	 
	 	Attention:	Daniel S. Huffenus

 

    	 

    	 

    

 

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

 

    	 

    	 

    

 

THIS DEED OF TRUST,
ASSIGNMENT OF LEASES AND RENTS, SECURITY AGREEMENT AND FIXTURE FILING (this “Security Instrument”) is made
as of this 19th day of November, 2014, and effective as of November 20, 2014, by MOODY NATIONAL RESEARCH-AUSTIN HOLDING,
LLC, a Delaware limited liability company, having its principal place of business at 6363 Woodway, Suite 110, Houston, Texas
77057, as grantor (together with its permitted successors and assigns, “Borrower”) to DANIEL S. HUFFENUS,
having an address at 550 South Tryon Street, Suite 2900, Charlotte, North Carolina 28202, as trustee (together with its successors
and assigns, “Trustee”) for the benefit of WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking
association, with a mailing address at Wells Fargo Center, 1901 Harrison Street, 2nd Floor, MAC A0227-020, Oakland,
California 94612, as beneficiary (together with its successors and assigns, “Lender”). All capitalized terms
not defined herein shall have the respective meanings set forth in the Loan Agreement (defined below).

 

RECITALS:

 

This Security Instrument
is given to Lender to secure a certain loan (the “Loan”) advanced pursuant to a certain loan agreement between
Borrower and Lender (as the same may have been or may be amended, restated, replaced, supplemented or otherwise modified from time
to time, the “Loan Agreement”), which such Loan is evidenced by, among other things, a certain Promissory
Note executed in connection with the Loan Agreement (together with all extensions, renewals, replacements, restatements or other
modifications thereof, whether one or more being hereinafter collectively referred to as the “Note”);

 

Borrower desires to secure
the payment of the outstanding principal amount set forth in, and evidenced by, the Loan Agreement and the Note together with all
interest accrued and unpaid thereon and all other sums due to Lender in respect of the Loan under the Note, the Loan Agreement,
this Security Instrument or any of the other Loan Documents (defined below) (collectively, the “Debt”) and the
performance of all of the obligations due under the Note, the Loan Agreement and all other documents, agreements and certificates
executed and/or delivered in connection with the Loan (as the same may be amended, restated, replaced, supplemented or otherwise
modified from time to time, collectively, the “Loan Documents”); and

 

This Security Instrument
is given pursuant to the Loan Agreement, and payment, fulfillment, and performance of the obligations due thereunder and under
the other Loan Documents are secured hereby in accordance with the terms hereof.

 

Article
1 – Grants of Security

 

Section 1.1.        Property
Mortgaged. Borrower does hereby irrevocably mortgage, grant, bargain, sell, pledge, assign,
warrant, transfer, convey and grant a security interest to Trustee, its successors and assigns, for the benefit of Lender and
its successors and assigns in and to the following property, rights, interests and estates now owned, or hereafter acquired by
Borrower (collectively, the “Property”):

 

(a)        Land.
The real property described in Exhibit A attached hereto and made a part hereof (collectively, the “Land”);

 

    	 

    	 

    

 

 

(b)        Additional
Land. All additional lands, estates and development rights hereafter acquired by Borrower for use in connection with the Land
and the development of the Land and all additional lands and estates therein which may, from time to time, by supplemental mortgage
or otherwise be expressly made subject to the lien of this Security Instrument;

 

(c)        Improvements.
The buildings, structures, fixtures, additions, enlargements, extensions, modifications, repairs, replacements and improvements
now or hereafter erected or located on the Land (collectively, the “Improvements”);

 

(d)        Easements.
All easements, rights-of-way or use, rights, strips and gores of land, streets, ways, alleys, passages, sewer rights, water, water
courses, water rights and powers, air rights and development rights, and all estates, rights, titles, interests, privileges, liberties,
servitudes, tenements, hereditaments and appurtenances of any nature whatsoever, in any way now or hereafter belonging, relating
or pertaining to the Land and the Improvements, and the reversions and remainders, and all land lying in the bed of any street,
road or avenue, opened or proposed, in front of or adjoining the Land, to the center line thereof and all the estates, rights,
titles, interests, rights of dower, rights of curtesy, property, possession, claim and demand whatsoever, both at law and in equity,
of Borrower of, in and to the Land and the Improvements, and every part and parcel thereof, with the appurtenances thereto;

 

(e)        Fixtures
and Personal Property. All machinery, equipment, fixtures (including, but not limited to, all heating, air conditioning, plumbing,
lighting, communications and elevator fixtures), furniture, software used in or to operate any of the foregoing and other property
of every kind and nature whatsoever owned by Borrower, or in which Borrower has or shall have an interest, now or hereafter located
upon the Land and the Improvements, or appurtenant thereto, and usable in connection with the present or future operation and occupancy
of the Land and the Improvements and all building equipment, materials and supplies of any nature whatsoever owned by Borrower,
or in which Borrower has or shall have an interest, now or hereafter located upon the Land and the Improvements, or appurtenant
thereto, or usable in connection with the present or future operation and occupancy of the Land and the Improvements (collectively,
the “Personal Property”), and the right, title and interest of Borrower in and to any of the Personal Property
which may be subject to any security interests, as defined in the Uniform Commercial Code, as adopted and enacted by the state
or states where any of the Property is located (the “Uniform Commercial Code”), and all proceeds and products
of the above;

 

(f)        Master
Lease. All rights, benefits, privileges, and interests of Borrower in that certain Hotel Lease Agreement dated of even date
herewith, between Moody National Research-Austin MT, LLC, a Delaware limited liability company (“Master Lessee”),
as master tenant, and Borrower, as landlord (the “Master Lease”) and that certain Assignment of Leases and Rents
and Security Agreement dated of even date herewith between Master Lessee, as assignor, and Borrower, as landlord (as it may from
time to time be assigned, renewed, extended, amended or supplemented, the “Master Lease Assignment of Leases”;
together with the Master Lease, the “Master Lease Documents”), and all modifications, extensions, renewals,
and replacements of the Master Lease Documents, and all remedies, privileges and security interests granted to Borrower under the
Master Lease Documents, and all deposits, credits, options, privileges, and rights of Borrower under the Master Lease Documents,
together with all of the easements, rights, privileges, franchises, tenements, hereditaments and appurtenances now or hereafter
thereunto belonging or in any way appertaining thereto, and all of the estate, right, title, interest, claim and demand whatsoever
of Borrower therein or thereto, either at law or in equity, in possession or in expectancy, now or hereafter acquired;

 

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(g)        Leases
and Rents. All other leases, subleases, subsubleases, lettings, licenses, concessions or other agreements (whether written
or oral) pursuant to which any Person is granted a possessory interest in, or right to use or occupy all or any portion of the
Land and the Improvements, and every modification, amendment or other agreement relating to such leases, subleases, subsubleases,
or other agreements entered into in connection with such leases, subleases, subsubleases, or other agreements and every guarantee
of the performance and observance of the covenants, conditions and agreements to be performed and observed by the other party thereto,
heretofore or hereafter entered into, whether before or after the filing by or against Borrower of any petition for relief under
any Creditors Rights Laws (collectively, the “Leases” provided that, except for purposes of ensuring that Borrower’s
right, title and interest in respect of Hotel Transactions have been assigned to Lender and are subject to the lien hereof, the
term “Leases” shall not include Hotel Transactions) and all right, title and interest of Borrower, its successors and
assigns therein and thereunder, including, without limitation, cash or securities deposited thereunder to secure the performance
by the lessees of their obligations thereunder and rents, rent equivalents, moneys payable as damages (including payments by reason
of the rejection of a Lease in a Bankruptcy Action) or in lieu of rent or rent equivalents, royalties (including, without limitation,
all oil and gas or other mineral royalties and bonuses), income, receivables, receipts, revenues, deposits (including, without
limitation, security, utility and other deposits), accounts, cash, issues, profits, charges for services rendered, and other consideration
of whatever form or nature received by or paid to or for the account of or benefit of Borrower, Master Lessee, Manager, or any
of their respective agents or employees from any and all sources arising from or attributable to the Property, including, without
limitation, all hotel receipts, revenues and credit card receipts collected from guest rooms, restaurants, bars, meeting rooms,
banquet rooms and recreational facilities, all receivables, customer obligations, installment payment obligations and other obligations
now existing or hereafter arising or created out of the sale, lease, sublease, license, concession or other grant of the right
of the use and occupancy of property or rendering of services by Borrower or Master Lessee or any operator or manager of the hotel
or the commercial space located in the Improvements or acquired from others (including, without limitation, from the rental of
any office space, retail space, guest rooms or other space, halls, stores, and offices, and deposits securing reservations of such
space), license, lease, sublease and concession fees and rentals, health club membership fees, food and beverage wholesale and
retail sales, service charges, vending machine sales and the Insurance Proceeds, if any, from business or rental interruption or
other loss of income insurance (collectively, the “Rents”) and all proceeds from the sale or other disposition
of the Leases and the right to receive and apply the Rents to the payment of the Debt;

 

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(h)        Insurance
Proceeds. All insurance proceeds in respect of the Property under any insurance policies covering the Property, including,
without limitation, the right to receive and apply the proceeds of any insurance, judgments, or settlements made in lieu thereof,
for damage to the Property (collectively, the “Insurance Proceeds”);

 

(i)        Condemnation
Awards. All condemnation awards, including interest thereon, which may heretofore and hereafter be made with respect to the
Property by reason of any taking or condemnation, whether from the exercise of the right of eminent domain (including, but not
limited to, any transfer made in lieu of or in anticipation of the exercise of the right), or for a change of grade, or for any
other injury to or decrease in the value of the Property (collectively, the “Awards”);

 

(j)        Tax
Certiorari. All refunds, rebates or credits in connection with reduction in real estate taxes and assessments charged against
the Property as a result of tax certiorari or any applications or proceedings for reduction;

 

(k)        Rights.
The right, in the name and on behalf of Borrower, to appear in and defend any action or proceeding brought with respect to the
Property and to commence any action or proceeding to protect the interest of Lender in the Property;

 

(l)        Agreements.
All agreements, contracts, certificates, instruments, franchises, permits, licenses, plans, specifications and other documents,
now or hereafter entered into, and all rights therein and thereto, respecting or pertaining to the use, occupation, construction,
management or operation of the Land and any part thereof and any Improvements or any business or activity conducted on the Land
and any part thereof and all right, title and interest of Borrower therein and thereunder, including, without limitation, the right,
upon the occurrence and during the continuance of any Event of Default hereunder, to receive and collect any sums payable to Borrower
thereunder;

 

(m)        Intangibles.
All tradenames, trademarks, servicemarks, logos, copyrights, goodwill, books and records and all other general intangibles relating
to or used in connection with the operation of the Property;

 

(n)        Accounts.
All reserves, escrows and deposit accounts maintained by Borrower with respect to the Property, including without limitation, the
Accounts and all cash, checks, drafts, certificates, securities, investment property, financial assets, instruments and other property
held therein from time to time and all proceeds, products, distributions or dividends or substitutions thereon and thereof;

 

(o)        Proceeds.
All proceeds of any of the foregoing items set forth in subsections (a) through (n) including, without limitation, Insurance Proceeds
and Awards, into cash or liquidation claims; and

 

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(p)        Other
Rights. Any and all other rights of Borrower in and to the items set forth in subsections (a) through (o) above.

 

Section 1.2.        Assignment
of Rents. Borrower hereby absolutely and unconditionally assigns to Lender and Trustee
all of Borrower’s right, title and interest in and to all current and future Leases and Rents; it being intended by Borrower
that this assignment constitutes a present, absolute assignment and not an assignment for additional security only. Nevertheless,
subject to the terms of the Loan Agreement and Section 8.1(h) of this Security Instrument, Lender grants to Borrower a revocable
license to (i) collect, receive, use and enjoy the Rents and Borrower shall hold the Rents, or a portion thereof sufficient to
discharge all current sums due on the Debt, for use in the payment of such sums, and (ii) enforce the terms of the Leases.

 

Section 1.3.        Security
Agreement. This Security Instrument is both a real property mortgage and a “security
agreement” within the meaning of the Uniform Commercial Code. The Property includes both real and personal property and
all other rights and interests, whether tangible or intangible in nature, of Borrower in the Property. By executing and delivering
this Security Instrument, Borrower hereby grants to Lender, as security for the Obligations (hereinafter defined), a security
interest in the Property to the full extent that the Property may be subject to the Uniform Commercial Code.

 

Section 1.4.        Fixture
Filing. Certain of the Property is or will become “fixtures” (as that term
is defined in the Uniform Commercial Code) on the Land, and this Security Instrument, upon being filed for record in the real
estate records of the city or county wherein such fixtures are situated, shall operate also as a financing statement filed as
a fixture filing in accordance with the applicable provisions of said Uniform Commercial Code upon such of the Property that is
or may become fixtures.

 

Section 1.5.        Conditions
to Grant. TO HAVE AND TO HOLD the above granted and described Property unto Trustee for
and on behalf of Lender and to the use and benefit of Lender and Trustee and their successors and assigns, forever; IN TRUST,
WITH POWER OF SALE, to secure payment to Lender of the Debt at the time and in the manner provided for its payment in the Note
and the Loan Agreement; PROVIDED, HOWEVER, these presents are upon the express condition that, if Lender shall be well and truly
paid the Debt at the time and in the manner provided in the Note, the Loan Agreement and this Security Instrument, if Borrower
shall well and truly perform the Other Obligations as set forth in this Security Instrument and shall well and truly abide by
and comply with each and every covenant and condition set forth herein and in the Note, the Loan Agreement and the other Loan
Documents, these presents and the estate hereby granted shall cease, terminate and be void; provided, however, that Borrower’s
obligation to indemnify and hold harmless Lender pursuant to the provisions hereof shall survive any such payment or release.

 

Article
2 – Debt and Obligations Secured

 

Section 2.1.        Debt.
This Security Instrument and the grants, assignments and transfers made in Article 1 are given for the purpose of securing the
Debt.

 

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Section 2.2.        Other
Obligations. This Security Instrument and the grants, assignments and transfers made
in Article 1 are also given for the purpose of securing the performance of the following (the “Other Obligations”):
(a) all other obligations of Borrower contained herein; (b) each obligation of Borrower contained in the Loan Agreement and any
other Loan Document; and (c) each obligation of Borrower contained in any renewal, extension, amendment, modification, consolidation,
change of, or substitution or replacement for, all or any part of the Note, the Loan Agreement or any other Loan Document.

 

Section 2.3.        Debt
and Other Obligations. Borrower’s obligations for the payment of the Debt and the
performance of the Other Obligations shall be referred to collectively herein as the “Obligations.”

 

Section 2.4.        Payment
of Debt. Borrower will pay the Debt at the time and in the manner provided in the Loan
Agreement, the Note and this Security Instrument.

 

Section 2.5.        Incorporation
by Reference. Borrower covenants and agrees that all the covenants, conditions and agreements
contained in (a) the Loan Agreement, (b) the Note and (c) all and any of the other Loan Documents, are hereby made a part of this
Security Instrument to the same extent and with the same force as if fully set forth herein.

 

Article
3 – Property Covenants

 

Borrower covenants and
agrees that:

 

Section 3.1.        Insurance.
Borrower shall obtain and maintain, or cause to be obtained and maintained, in full force and effect at all times insurance with
respect to Borrower and the Property as required pursuant to the Loan Agreement.

 

Section 3.2.        Taxes
and Other Charges. Subject to Borrower’s rights of contest as may be specifically
set forth in the Loan Agreement, Borrower shall pay all real estate and personal property taxes, assessments, water rates or sewer
rents (collectively “Taxes”), ground rents, maintenance charges, impositions (other than Taxes), and any other
charges, including, without limitation, vault charges and license fees for the use of vaults, chutes and similar areas adjoining
the Property (collectively, “Other Charges”), now or hereafter levied or assessed or imposed against the Property
or any part thereof in accordance with the Loan Agreement.

 

Section 3.3.        Leases.
Borrower shall not (and shall not permit any other applicable Person to) enter in any Leases for all or any portion of the Property
unless in accordance with the provisions of the Loan Agreement.

 

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Section 3.4.        Warranty
of Title. Borrower has good, indefeasible, marketable and insurable title to the Property
and has the right to mortgage, grant, bargain, sell, pledge, assign, warrant, transfer and convey the same. Borrower possesses
an unencumbered fee simple absolute estate in the Land and the Improvements except for the Permitted Encumbrances, such other
liens as are permitted pursuant to the Loan Documents and the liens created by the Loan Documents. This Security Instrument, when
properly recorded in the appropriate records, together with any Uniform Commercial Code financing statements required to be filed
in connection therewith, will create (a) a legal, valid, and perfected first priority lien on that portion of the Property constituting
an interest in real property, subject only to Permitted Encumbrances and the liens created by the Loan Documents and (b) a legal,
valid, and perfected first priority security interests in and to, and legal, valid, and perfected collateral assignments of, all
personalty (including the Leases, to the extent that the creation of a security interest in the Leases is subject to the Uniform
Commercial Code, as in effect under applicable law), to the extent that a security interest therein can be created under the Uniform
Commercial Code as in effect in the State of New York or Texas, as applicable, and can be perfected by the filing of financing
statements under the Uniform Commercial Code, all in accordance with the terms thereof, in each case subject only to any applicable
Permitted Encumbrances, such other liens as are permitted pursuant to the Loan Documents and the liens created by the Loan Documents.
Borrower shall forever warrant, defend and preserve the title and the validity and priority of the lien of this Security Instrument
and shall forever warrant and defend the same to Lender against the claims of all Persons whomsoever. 

 

Section 3.5.        Payment
for Labor and Materials. Subject to Borrower’s right to contest any Work Charge
(defined herein) pursuant to the terms of the Loan Agreement, Borrower will promptly pay (or cause to be paid) when due all bills
and costs for labor, materials, and specifically fabricated materials incurred in connection with the Property (each, a “Work
Charge”) and never permit to exist beyond the due date thereof in respect of the Property or any part thereof any lien
or security interest, even though inferior to the liens and the security interests hereof, and in any event never permit to be
created or exist in respect of the Property or any part thereof any other or additional lien or security interest other than the
liens or security interests hereof except for the Permitted Encumbrances. Borrower represents there are no claims for payment
for work, labor or materials affecting the Property which are or may become a lien prior to, or of equal priority with, the liens
created by the Loan Documents.

 

Article
4 – Further Assurances

 

Section 4.1.        Compliance
with Loan Agreement. Borrower shall comply with all covenants set forth in the Loan Agreement
relating to acts or other further assurances to be made on the part of Borrower in order to protect and perfect the lien or security
interest hereof upon, and in the interest of Lender in, the Property.

 

Section 4.2.        Authorization
to File Financing Statements; Power of Attorney. Borrower hereby authorizes Lender at
any time and from time to time to file any initial financing statements, amendments thereto and continuation statements as authorized
by applicable law, as applicable to all or part of the Personal Property and as necessary or required in connection herewith.
For purposes of such filings, Borrower agrees to furnish any information requested by Lender promptly upon request by Lender.
Borrower also ratifies its authorization for Lender to have filed any like initial financing statements, amendments thereto or
continuation statements, if filed prior to the date of this Security Instrument. Borrower hereby irrevocably constitutes and appoints
Lender and any officer or agent of Lender, with full power of substitution, as its true and lawful attorneys-in-fact with full
irrevocable power and authority in the place and stead of Borrower or in Borrower’s own name to execute in Borrower’s
name any such documents and otherwise to carry out the purposes of this Section 4.2, to the extent that Borrower’s authorization
above is not sufficient and Borrower fails or refuses to promptly execute such documents. To the extent permitted by law, Borrower
hereby ratifies all acts said attorneys-in-fact have lawfully done in the past or shall lawfully do or cause to be done in the
future by virtue hereof. This power of attorney is a power coupled with an interest and shall be irrevocable.

 

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Article
5 – Due On Sale/Encumbrance

 

Section 5.1.        No
Sale/Encumbrance. Except in accordance with the express terms and conditions contained
in the Loan Agreement or otherwise with Lender’s express prior written consent (which consent may be granted or denied in
Lender’s sole discretion), Borrower shall not cause or permit a sale, conveyance, mortgage, grant, bargain, encumbrance,
pledge, assignment, or grant of any options with respect to, or any other transfer or disposition (directly or indirectly, voluntarily
or involuntarily, by operation of law or otherwise, and whether or not for consideration or of record) of a legal or beneficial
interest in the Property or any part thereof, Borrower, any constituent owner or other holder of a direct or indirect equity interest
in Borrower, any indemnitor or other guarantor of the Loan, any constituent owner or other holder of a direct or indirect equity
interest in such indemnitor or guarantor, any manager or operating lessee of the Property that is affiliated with Borrower or
any constituent owner or other holder of a direct or indirect equity interest in such manager or such operating lessee. 

 

Article
6 – Prepayment, Release of Property

 

Section 6.1.        Prepayment.
The Debt may not be prepaid in whole or in part except in strict accordance with the express terms and conditions of the Note
and the Loan Agreement.

 

Section 6.2.        Release
of Property. Borrower shall not be entitled to a release of any portion of the Property
from the lien of this Security Instrument except in accordance with terms and conditions of the Loan Agreement.

 

Article
7 – Default

 

Section 7.1.        Event
of Default. The term “Event of Default” as used in this Security Instrument
shall have the meaning assigned to such term in the Loan Agreement.

 

Article
8 – Rights And Remedies Upon Default

 

Section 8.1.        Remedies.
Upon the occurrence and during the continuance of any Event of Default, Borrower agrees that Lender may or acting by or through
Trustee may take such action, without notice or demand, as it deems advisable to protect and enforce its rights against Borrower
and in and to the Property, including, but not limited to, the following actions, each of which may be pursued concurrently or
otherwise, at such time and in such order as Lender or Trustee may determine, in their sole discretion, without impairing or otherwise
affecting the other rights and remedies of Lender or Trustee:

 

(a)        declare
the entire unpaid Debt to be immediately due and payable;

 

(b)        institute
proceedings, judicial or otherwise, for the complete foreclosure of this Security Instrument under any applicable provision of
law, in which case the Property or any interest therein may be sold for cash or upon credit in one or more parcels or in several
interests or portions and in any order or manner;

 

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(c)        with or
without entry, to the extent permitted and pursuant to the procedures provided by applicable law, institute proceedings for the
partial foreclosure of this Security Instrument for the portion of the Debt then due and payable, subject to the continuing lien
and security interest of this Security Instrument for the balance of the Debt not then due, unimpaired and without loss of priority;

 

(d)        sell for
cash or upon credit the Property or any part thereof and all estate, claim, demand, right, title and interest of Borrower therein
and rights of redemption thereof, pursuant to power of sale or otherwise, at one or more sales, as an entirety or in parcels, at
such time and place, upon such terms and after such notice thereof as may be required or permitted by law;

 

(e)        institute
an action, suit or proceeding in equity for the specific performance of any covenant, condition or agreement contained herein,
in the Note, the Loan Agreement or in the other Loan Documents;

 

(f)        recover
judgment on the Note either before, during or after any proceedings for the enforcement of this Security Instrument or the other
Loan Documents;

 

(g)        apply
for the appointment of a receiver, trustee, liquidator or conservator of the Property, without notice to Borrower, which notice
Borrower expressly waives, and without regard for the adequacy of the security for the Debt and without regard for the solvency
of Borrower, any guarantor or indemnitor under the Loan or any other Person liable for the payment of the Debt and whose appointment
Borrower expressly consents to take possession of and to operate the Property and to collect the Rents and to otherwise protect
and preserve the Property;

 

(h)        the license
granted to Borrower under Section 1.2 hereof shall automatically be revoked and Lender may enter into or upon the Property, either
personally or by its agents, nominees or attorneys and dispossess Borrower and its agents and servants therefrom, without liability
for trespass, damages or otherwise and exclude Borrower and its agents or servants wholly therefrom, and take possession of all
books, records and accounts relating thereto and Borrower agrees to surrender possession of the Property and of such books, records
and accounts to Lender upon demand, and thereupon Lender may (i) use, operate, manage, control, insure, maintain, repair, restore
and otherwise deal with all and every part of the Property and conduct the business thereat; (ii) complete any construction on
the Property in such manner and form as Lender deems advisable; (iii) make alterations, additions, renewals, replacements and improvements
to or on the Property; (iv) exercise all rights and powers of Borrower with respect to the Property, whether in the name of Borrower
or otherwise, including, without limitation, the right to make, cancel, enforce or modify Leases, obtain and evict tenants, and
demand, sue for, collect and receive all Rents of the Property and every part thereof; (v) require Borrower to pay monthly
in advance to Lender, or any receiver appointed to collect the Rents, the fair and reasonable rental value for the use and occupation
of such part of the Property as may be occupied by Borrower; (vi) require Borrower to vacate and surrender possession of the Property
to Lender or to such receiver and, in default thereof, Borrower may be evicted by summary proceedings or otherwise; and (vii) apply
the receipts from the Property to the payment of the Debt, in such order, priority and proportions as Lender shall deem appropriate
in its sole discretion after deducting therefrom all expenses (including reasonable attorneys’ fees) incurred in connection
with the aforesaid operations and all amounts necessary to pay the Taxes, Other Charges, insurance and other expenses in connection
with the Property, as well as just and reasonable compensation for the services of Lender, its counsel, agents and employees;

 

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(i)        subject
to the provisions of the Loan Agreement, apply any sums then deposited or held in escrow or otherwise by or on behalf of Lender
in accordance with the terms of the Loan Agreement, this Security Instrument or any other Loan Document to the payment of the following
items in any order in its sole discretion: (i) Taxes and Other Charges; (ii) insurance premiums; (iii) interest on the unpaid
principal balance of the Note; (iv) amortization of the unpaid principal balance of the Note; (v) all other sums payable pursuant
to the Note, the Loan Agreement, this Security Instrument and the other Loan Documents, including without limitation advances made
by Lender pursuant to the terms of this Security Instrument;

 

(j)        upon foreclosure
of this Security Instrument, surrender the insurance policies maintained pursuant to the Loan Agreement, collect the unearned insurance
premiums for such insurance policies and apply such sums as a credit on the Debt in such priority and proportion as Lender in its
discretion shall deem proper, and in connection therewith, Borrower hereby appoints Lender as agent and attorney-in-fact (which
is coupled with an interest and is therefore irrevocable) for Borrower to collect such insurance premiums;

 

(k)        apply
the undisbursed balance of any deposit made by Borrower with Lender in connection with the restoration of the Property after a
casualty thereto or condemnation thereof, together with interest thereon, to the payment of the Debt in such order, priority and
proportions as Lender shall deem to be appropriate in its discretion;

 

(l)        exercise
any and all rights, remedies or other privileges of Borrower under the Master Lease and the Master Lease Assignment of Leases;
and/or

 

(m)        pursue
such other remedies as Lender may have under Applicable Law.

 

In the event of a sale, by foreclosure, power
of sale or otherwise, of less than all of Property, this Security Instrument shall continue as a lien and security interest on
the remaining portion of the Property unimpaired and without loss of priority. Notwithstanding the provisions of this Section to
the contrary, if any Event of Default as described in Section 10.1(g) of the Loan Agreement shall occur (with respect to Borrower
and SPE Component Entity only), the entire unpaid Debt shall be automatically due and payable, without any further notice, demand
or other action by Lender.

 

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Section 8.2.        Application
of Proceeds. Subject to the provisions of the Loan Agreement, the purchase money, proceeds
and avails of any disposition of the Property, and or any part thereof, or any other sums collected by Lender pursuant to the
Note, this Security Instrument or the other Loan Documents, may be applied by Lender to the payment of the Debt in such priority
and proportions as Lender in its discretion shall deem proper.

 

Section 8.3.        Right
to Cure Defaults. Upon the occurrence and during the continuance of any Event of Default,
Lender may, but without any obligation to do so and without notice to or demand on Borrower and without releasing Borrower from
any obligation hereunder, make any payment or do any act required of Borrower hereunder in such manner and to such extent as Lender
may deem necessary to protect the security hereof. Lender or Trustee is authorized to enter upon the Property for such purposes,
or appear in, defend, or bring any action or proceeding to protect its interest in the Property or to foreclose this Security
Instrument or collect the Debt, and the cost and expense thereof (including reasonable attorneys’ fees to the extent permitted
by law), with interest as provided in this Section 8.3, shall constitute a portion of the Debt and shall be due and payable to
Lender upon demand. All such costs and expenses incurred by Lender in remedying such Event of Default or such failed payment or
act or in appearing in, defending, or bringing any such action or proceeding shall bear interest at any default rate specified
in the Loan Agreement, if any (the “Default Rate”), for the period after notice from Lender that such cost
or expense was incurred to the date of payment to Lender. All such costs and expenses incurred by Lender or Trustee together
with interest thereon calculated at the Default Rate shall be deemed to constitute a portion of the Debt and be secured by this
Security Instrument and the other Loan Documents and shall be immediately due and payable upon demand by Lender therefor.

 

Section 8.4.        Actions
and Proceedings. Lender or Trustee has the right to appear in and defend any action or
proceeding brought with respect to the Property and to bring any action or proceeding, in the name and on behalf of Borrower,
which Lender, in its discretion, decides should be brought to protect its interest in the Property.

 

Section 8.5.        Recovery
of Sums Required To Be Paid. Lender shall have the right from time to time to take action
to recover any sum or sums which constitute a part of the Debt as the same become due, without regard to whether or not the balance
of the Debt shall be due, and without prejudice to the right of Lender thereafter to bring an action of foreclosure, or any other
action, for an Event of Default or Events of Default by Borrower existing at the time such earlier action was commenced.

 

Section
8.6.        Other
Rights, etc. (a) The failure of Lender or Trustee to insist upon strict performance of any term hereof shall not be
deemed to be a waiver of any term of this Security Instrument. Borrower shall not be relieved of Borrower’s obligations
hereunder by reason of (i) the failure of Lender or Trustee to comply with any request of Borrower or any guarantor or
indemnitor with respect to the Loan to take any action to foreclose this Security Instrument or otherwise enforce any of the
provisions hereof or of the Note or the other Loan Documents, (ii) the release, regardless of consideration, of the whole or
any part of the Property, or of any Person liable for the Debt or any portion thereof, or (iii) any agreement or stipulation
by Lender extending the time of payment or otherwise modifying or supplementing the terms of the Note, this Security
Instrument or the other Loan Documents.

 

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(b)        It is
agreed that the risk of loss or damage to the Property is on Borrower, and Lender shall have no liability whatsoever for decline
in the value of the Property, for failure to maintain the insurance policies required to be maintained pursuant to the Loan Agreement,
or for failure to determine whether insurance in force is adequate as to the amount of risks insured. Possession by Lender shall
not be deemed an election of judicial relief if any such possession is requested or obtained with respect to any Property or collateral
not in Lender’s possession.

 

(c)        Lender
may resort for the payment of the Debt to any other security held by Lender in such order and manner as Lender, in its discretion,
may elect. Lender or Trustee may take action to recover the Debt, or any portion thereof, or to enforce any covenant hereof without
prejudice to the right of Lender or Trustee thereafter to foreclose this Security Instrument. The rights of Lender or Trustee under
this Security Instrument shall be separate, distinct and cumulative and none shall be given effect to the exclusion of the others.
No act of Lender or Trustee shall be construed as an election to proceed under any one provision herein to the exclusion of any
other provision. Neither Lender nor Trustee shall be limited exclusively to the rights and remedies herein stated but shall be
entitled to every right and remedy now or hereafter afforded at law or in equity.

 

Section 8.7.        Right
to Release Any Portion of the Property. Lender may release any portion of the Property
for such consideration as Lender may require without, as to the remainder of the Property, in any way impairing or affecting the
lien or priority of this Security Instrument, or improving the position of any subordinate lienholder with respect thereto, except
to the extent that the obligations hereunder shall have been reduced by the actual monetary consideration, if any, received by
Lender for such release, and may accept by assignment, pledge or otherwise any other property in place thereof as Lender may require
without being accountable for so doing to any other lienholder. This Security Instrument shall continue as a lien and security
interest in the remaining portion of the Property.

 

Section 8.8.        Right
of Entry. Upon reasonable notice to Borrower, Lender and its agents shall have the right
to enter and inspect the Property at all reasonable times.

 

Section 8.9.        Bankruptcy.
(a) Upon the occurrence and during the continuance of an Event of Default, Lender shall have the right to proceed in its own name
or in the name of Borrower in respect of any claim, suit, action or proceeding relating to the rejection of any Lease, including,
without limitation, the right to file and prosecute, to the exclusion of Borrower, any proofs of claim, complaints, motions, applications,
notices and other documents, in any case in respect of the lessee under such Lease under the Bankruptcy Code (defined below).

 

(b)        If there
shall be filed by or against Borrower a petition under the Bankruptcy Code and Borrower, as lessor under any Lease, shall determine
to reject such Lease pursuant to Section 365(a) of the Bankruptcy Code, then Borrower shall give Lender not less than ten (10)
days’ prior notice of the date on which Borrower shall apply to the bankruptcy court for authority to reject the Lease. Lender
shall have the right, but not the obligation, to serve upon Borrower within such ten-day period a notice stating that (i) Lender
demands that Borrower assume and assign the Lease to Lender pursuant to Section 365 of the Bankruptcy Code and (ii) Lender covenants
to cure or provide adequate assurance of future performance under the Lease. If Lender serves upon Borrower the notice described
in the preceding sentence, Borrower shall not seek to reject the Lease and shall comply with the demand provided for in clause
(i) of the preceding sentence within thirty (30) days after the notice shall have been given, subject to the performance by Lender
of the covenant provided for in clause (ii) of the preceding sentence.

 

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Section 8.10.        Subrogation.
If any or all of the proceeds of the Note have been used to extinguish, extend or renew any indebtedness heretofore existing against
the Property, then, to the extent of the funds so used, Lender shall be subrogated to all of the rights, claims, liens, titles,
and interests existing against the Property heretofore held by, or in favor of, the holder of such indebtedness and such former
rights, claims, liens, titles, and interests, if any, are not waived but rather are continued in full force and effect in favor
of Lender and are merged with the lien and security interest created herein as cumulative security for the repayment of the Debt,
the performance and discharge of the Other Obligations.

 

Article
9 – Environmental Hazards

 

Section 9.1.        Environmental
Covenants. Borrower has provided representations, warranties and covenants regarding
environmental matters set forth in the Environmental Indemnity and Borrower shall comply with the aforesaid covenants regarding
environmental matters.

 

Article
10 – Waivers

 

Section 10.1.        Marshalling
and Other Matters. Borrower hereby waives, to the extent permitted by law, the benefit
of all Applicable Law now or hereafter in force regarding appraisement, valuation, stay, extension, reinstatement and redemption
and all rights of marshalling in the event of any sale hereunder of the Property or any part thereof or any interest therein.
Further, Borrower hereby expressly waives any and all rights of redemption from sale under any order or decree of foreclosure
of this Security Instrument on behalf of Borrower, and on behalf of each and every Person acquiring any interest in or title to
the Property subsequent to the date of this Security Instrument and on behalf of all Persons to the extent permitted by Applicable
Law. 

 

Section 10.2.        Waiver
of Notice. Borrower shall not be entitled to any notices of any nature whatsoever from
Lender or Trustee except with respect to matters for which this Security Instrument or another Loan Document specifically and
expressly provides for the giving of notice by Lender or Trustee to Borrower and except with respect to matters for which Borrower
is not permitted by Applicable Law to waive its right to receive notice, and Borrower hereby expressly waives the right to receive
any notice from Lender or Trustee with respect to any matter for which this Security Instrument or another Loan Document does
not specifically and expressly provide for the giving of notice by Lender or Trustee to Borrower.

 

Section 10.3.        Intentionally
Omitted.

 

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Section 10.4.        Sole
Discretion of Lender. Whenever pursuant to this Security Instrument, Lender exercises
any right given to it to approve or disapprove, or any arrangement or term is to be satisfactory to Lender, the decision of Lender
to approve or disapprove or to decide whether arrangements or terms are satisfactory or not satisfactory shall (except as is otherwise
specifically herein provided) be in the sole (but reasonable) discretion of Lender and shall be final and conclusive.

 

Section 10.5.        Waiver
of Trial by Jury. BORROWER AND LENDER EACH HEREBY AGREES NOT TO ELECT A TRIAL BY JURY
OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVES ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW
OR HEREAFTER EXIST WITH REGARD TO THE LOAN DOCUMENTS, OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION THEREWITH.
THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY BORROWER AND LENDER, AND IS INTENDED TO ENCOMPASS
INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE. EACH OF LENDER AND
BORROWER IS HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY BORROWER
AND LENDER.

 

Section 10.6.        Waiver
of Foreclosure Defense. Borrower hereby waives any defense Borrower might assert or have
by reason of Lender’s failure to make any tenant or lessee of the Property a party defendant in any foreclosure proceeding
or action instituted by Lender.

 

Article
11 – Intentionally Omitted

 

Article
12 – Notices

 

Section 12.1.        Notices.
All notices or other written communications hereunder shall be delivered in accordance with the applicable terms and conditions
of the Loan Agreement.

 

Notices to the Trustee
shall be sent as follows:

 

Katten
Muchin Rosenman LLP

550
South Tryon St, Suite 2900

Charlotte,
North Carolina 28202

Attention:
Daniel S. Huffenus, Esq.

Facsimile: (704) 344-3056

 

Article
13 – Applicable Law

 

Section 13.1.        Governing
Law. This Security Instrument shall be governed, construed, applied and enforced in accordance
with the laws of the state in which the Property is located and Applicable Laws of the United States of America.

 

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Section 13.2.        Provisions
Subject to Applicable Law. All rights, powers and remedies provided in this Security
Instrument may be exercised only to the extent that the exercise thereof does not violate any applicable provisions of law and
are intended to be limited to the extent necessary so that they will not render this Security Instrument invalid, unenforceable
or not entitled to be recorded, registered or filed under the provisions of any applicable law. If any term of this Security Instrument
or any application thereof shall be invalid or unenforceable, the remainder of this Security Instrument and any other application
of the term shall not be affected thereby.

 

Article
14 – Definitions

 

Section 14.1.        General
Definitions. Unless the context clearly indicates a contrary intent or unless otherwise
specifically provided herein, words used in this Security Instrument may be used interchangeably in singular or plural form and
the word “Borrower” shall mean “each Borrower and any subsequent owner or owners of the fee interest
in the Property or any part thereof or any interest therein,” the word “Lender” shall mean “Lender
and any of Lender’s successors and assigns,” the word “Note” shall mean “the Note and any
other evidence of indebtedness secured by this Security Instrument,” “Trustee” shall mean “Trustee
and any substitute Trustee of the estates, properties, powers, trusts and rights conferred upon Trustee pursuant to this Security
Instrument, the word “Property” shall include any portion of the Property and any interest therein, and the
phrases “attorneys’ fees”, “legal fees” and “counsel fees” shall include any and all
attorneys’, paralegal and law clerk fees and disbursements, including, but not limited to, fees and disbursements at the
pre-trial, trial and appellate levels incurred or paid by Lender in protecting its interest in the Property, the Leases and the
Rents and enforcing its rights hereunder.

 

Article
15 – Miscellaneous Provisions

 

Section 15.1.        No
Oral Change. This Security Instrument, 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 Borrower,
Lender or Trustee, 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.

 

Section 15.2.        Successors
and Assigns. This Security Instrument shall be binding upon and inure to the benefit
of Borrower, Lender and their respective successors and assigns forever.

 

Section 15.3.        Inapplicable
Provisions. If any term, covenant or condition of the Loan Agreement, the Note or this
Security Instrument is held to be invalid, illegal or unenforceable in any respect, the Loan Agreement, the Note and this Security
Instrument shall be construed without such provision.

 

Section 15.4.        Headings,
etc. The headings and captions of various
Sections of this Security Instrument 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.

 

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Section 15.5.        Number
and Gender. Whenever the context may require, any pronouns used herein shall include
the corresponding masculine, feminine or neuter forms, and the singular form of nouns and pronouns shall include the plural and
vice versa.

 

Section 15.6.        Entire
Agreement. This Security Instrument and the other Loan Documents contain the entire agreement
of the parties hereto and thereto in respect of the transactions contemplated hereby and thereby, and all prior agreements among
or between such parties, whether oral or written, are superseded by the terms of this Security Instrument and the other Loan Documents.

 

Section 15.7.        Limitation
on Lender’s Responsibility. No provision of this Security Instrument shall operate
to place any obligation or liability for the control, care, management or repair of the Property upon Lender, nor shall it operate
to make Lender responsible or liable for any waste committed on the Property by the tenants or any other Person, or for any dangerous
or defective condition of the Property, or for any negligence in the management, upkeep, repair or control of the Property resulting
in loss or injury or death to any tenant, licensee, employee or stranger. Nothing herein contained shall be construed as constituting
Lender a “mortgagee in possession.” 

 

Article
16 – Deed of Trust Provisions

 

Section 16.1.        Concerning
the Trustee. Trustee shall be under no duty to take any action hereunder except as expressly
required hereunder or by law, or to perform any act which would involve Trustee in any expense or liability or to institute or
defend any suit in respect hereof, unless properly indemnified to Trustee’s reasonable satisfaction. Trustee, by acceptance
of this Security Instrument, represents that it is duly qualified to serve as Trustee hereunder and covenants to perform and fulfill
the trusts herein created, being liable, however, only for gross negligence or willful misconduct, and hereby waives any statutory
fee and agrees to accept reasonable compensation, in lieu thereof, for any services rendered by Trustee in accordance with the
terms hereof. Trustee may resign at any time upon giving thirty (30) days’ notice to Borrower and to Lender. Lender may
remove Trustee at any time or from time to time and select a successor trustee. In the event of the death, removal, resignation,
refusal to act, or inability to act of Trustee, or in its sole discretion for any reason whatsoever Lender may, without notice
and without specifying any reason therefor and without applying to any court, select and appoint a successor trustee, by an instrument
recorded wherever this Security Instrument is recorded and all powers, rights, duties and authority of Trustee, as aforesaid,
shall thereupon become vested in such successor. Such substitute trustee shall not be required to give bond for the faithful performance
of the duties of Trustee hereunder unless required by Lender. The procedure provided for in this paragraph for substitution of
Trustee shall be in addition to and not in exclusion of any other provisions for substitution, by law or otherwise.

 

Section 16.2.        Trustee’s
Fees. Borrower shall pay all reasonable costs, fees and expenses incurred by Trustee
and Trustee’s agents and counsel in connection with the performance by Trustee of Trustee’s duties hereunder and all
such costs, fees and expenses shall be secured by this Security Instrument. Notwithstanding anything to the contrary contained
herein or in any other Loan Document, Trustee hereby acknowledges and agrees that no fees or other compensation shall be payable
to Trustee hereunder or otherwise in connection with the Loan or Loan Documents except in connection with (a) a sale of the Property
in connection with an exercise of remedies hereunder and/or under the other Loan Documents or (b) a release hereof in accordance
with the applicable terms and conditions hereof and of the other Loan Documents.

 

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Section 16.3.        Certain
Rights. With the approval of Lender, Trustee shall have the right to take any and all
of the following actions: (i) to select, employ, and advise with counsel (who may be, but need not be, counsel for Lender) upon
any matters arising hereunder, including the preparation, execution, and interpretation of the Note, this Security Instrument
or the other Loan Documents, and shall be fully protected in relying as to legal matters on the advice of counsel, (ii) to execute
any of the trusts and powers hereof and to perform any duty hereunder either directly or through his/her agents or attorneys,
(iii) to select and employ, in and about the execution of his/her duties hereunder, suitable accountants, engineers and other
experts, agents and attorneys-in-fact, either corporate or individual, not regularly in the employ of Trustee, and Trustee shall
not be answerable for any act, default, negligence, or misconduct of any such accountant, engineer or other expert, agent or attorney-in-fact,
if selected with reasonable care, or for any error of judgment or act done by Trustee in good faith, or be otherwise responsible
or accountable under any circumstances whatsoever, except for Trustee’s gross negligence or bad faith, and (iv) any and
all other lawful action as Lender may instruct Trustee to take to protect or enforce Lender’s rights hereunder. Trustee
shall not be personally liable in case of entry by Trustee, or anyone entering by virtue of the powers herein granted to Trustee,
upon the Property for debts contracted for or liability or damages incurred in the management or operation of the Property. Trustee
shall have the right to rely on any instrument, document, or signature authorizing or supporting an action taken or proposed to
be taken by Trustee hereunder, believed by Trustee in good faith to be genuine. Trustee shall be entitled to reimbursement for
actual expenses incurred by Trustee in the performance of Trustee’s duties hereunder and to reasonable compensation for
such of Trustee’s services hereunder as shall be rendered.

 

Section 16.4.        Retention
of Money. All moneys received by Trustee shall, until used or applied as herein provided,
be held in trust for the purposes for which they were received, but need not be segregated in any manner from any other moneys
(except to the extent required by applicable law) and Trustee shall be under no liability for interest on any moneys received
by Trustee hereunder.

 

Section 16.5.        Perfection
of Appointment. Should any deed, conveyance, or instrument of any nature be required
from Borrower by any Trustee or substitute trustee to more fully and certainly vest in and confirm to Trustee or substitute trustee
such estates rights, powers, and duties, then, upon request by Trustee or substitute trustee, any and all such deeds, conveyances
and instruments shall be made, executed, acknowledged, and delivered and shall be caused to be recorded and/or filed by Borrower.

 

Section 16.6.        Succession
Instruments. Any substitute trustee appointed pursuant to any of the provisions hereof
shall, without any further act, deed, or conveyance, become vested with all the estates, properties, rights, powers, and trusts
of its or his/her predecessor in the rights hereunder with like effect as if originally named as Trustee herein; but nevertheless,
upon the written request of Lender or of the substitute trustee, Trustee ceasing to act shall execute and deliver any instrument
transferring to such substitute trustee, upon the trusts herein expressed, all the estates, properties, rights, powers, and trusts
of Trustee so ceasing to act, and shall duly assign, transfer and deliver any of the property and moneys held by such Trustee
to the substitute trustee so appointed in Trustee’s place.

 

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Article
17 – State-Specific Provisions

 

Section 17.1.        Principles
of Construction. In the event of any inconsistencies between the terms and conditions
of this Article 17 and the terms and conditions of this Security Instrument, the terms and conditions of this Article 17 shall
control and be binding.

 

Section 17.2.        Foreclosure.
The following provisions shall be applicable in the event Lender elects to institute foreclosure proceedings upon the occurrence
and during the continuance of an Event of Default.

 

(a)        Should Lender have
elected to accelerate the indebtedness secured hereby, Lender may initiate foreclosure of the Property by requesting the Trustee
to effectuate a non-judicial foreclosure sale. The Trustee of this Security Instrument shall then sell, or offer for sale, the
Property at public sale to the highest bidder for cash during a three hour period between the hours of ten o’clock a.m. and
four o’clock p.m. whose earliest point in time is specified, on the first Tuesday of any month, at the area officially designated
for holding such sales at the courthouse of any county in the State of Texas in which any part of the Property is situated, after
having given notice of the date, the time period, place and terms of said sale in accordance with the laws of the State of Texas
then in force and governing said sales of real property and improvements under powers conferred by deeds of trust. The Property
shall be sold by posting, or causing to be posted, at least twenty one (21) consecutive days prior to the date of said sale, written
or printed notice thereof at the courthouse door in each of the counties in which the Property is situated, designating the county
where the Property will be sold and designating the date, the time period, the place and the terms of sale. A copy of such notice
shall also be filed in the office of the County Clerk in each county of the State of Texas in which any part of the Property is
situated at least twenty one (21) consecutive days before the date of said sale of the Property. Lender shall have the right to
become the purchaser at any sale held by any Trustee or substitute or successor Trustee, or by any receiver or public officer.
Any Lender purchasing at any such sale shall have the right to credit the secured indebtedness owing to such Lender upon the amount
of its bid entered at such sale to the extent necessary to satisfy such bid. Said Trustee may appoint an attorney in fact to act
in its stead as Trustee to conduct sale as hereinbefore provided. Borrower authorizes and empowers the Trustee to sell the Property,
in lots or parcels or as a whole, and to execute and deliver to the purchaser or purchasers thereof good and sufficient deeds of
conveyance thereto of the estate of title then existing on the Property and bills of sale with covenants of general warranty. Borrower
binds itself to warrant and forever defend the title of such purchaser or purchasers when so made by the Trustee, and agrees to
accept proceeds of said sale, if any, which are payable to Borrower as provided herein. In addition to the posting and filing of
notices hereinabove provided, and for so long as required by law, no foreclosure under the power of sale herein contained shall
be held unless Lender, at least twenty one (21) days preceding the date of sale and in the manner prescribed by law, shall have
served written notice of the proposed sale which designates the County where the Property will be sold and designates the date,
time period, the place and the terms of sale by certified mail on Borrower. Service of such a notice by certified mail shall be
completed upon deposit of such notice, postage prepaid and properly addressed to each such person or entity at the address for
Borrower indicated on the first page of this Security Instrument, in a Post Office of the United States Postal Service or in an
official depository under the care and custody of the United States Postal Service. The affidavit of a person knowledgeable of
the facts to the effect that such service was completed shall be prima facie evidence of the fact of service.

 

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(b)        Should Lender have
not elected to accelerate the indebtedness secured hereby, Lender may nonetheless proceed with foreclosure in satisfaction of such
Event of Default, either through the courts or by directing the Trustee to proceed as if under a full foreclosure, conducting sale
as hereinbefore provided, but without declaring the entire indebtedness secured by this Security Instrument due, and provided that
if said sale is made because of such Event of Default, such sale may be made subject to the unmatured part of the secured indebtedness.
Such sale, if so made, shall not in any manner affect the unmatured part of the debt secured by this Security Instrument, but as
to such unmatured part, this Security Instrument shall remain in full force as though no sale had been made. Several sales may
be made without exhausting the right of sale with respect to any unmatured part of the secured indebtedness, it being the purpose
and intent hereof to provide for a foreclosure and the sale of the Property for any matured portion of said secured indebtedness
without exhausting the power of foreclosure.

 

(c)        In the event foreclosure
proceedings are instituted or filed by Lender, all reasonable out of pocket expenses incident to such proceedings, including, but
not limited to, reasonable attorneys’ fees and costs, shall be paid by Borrower and secured by this Security Instrument and
by all of the other Loan Documents securing all or any part of the indebtedness evidenced by the Note. The secured indebtedness
and all other obligations secured by this Security Instrument, including, without limitation, interest at the Default Rate, any
prepayment charge, fee or premium required to be paid under the Note in order to prepay principal (to the extent permitted by applicable
law), reasonable attorneys’ fees and any other amounts due and unpaid to Lender under the Loan Documents, may be bid by Lender
in the event of a foreclosure sale hereunder.

 

Section 17.3.        Waiver
of Deficiency Statute.

 

(a)        Waiver. In
the event an interest in any of the Property is foreclosed upon pursuant to a judicial or nonjudicial foreclosure sale, Borrower
agrees that, notwithstanding the provisions of Sections 51.003, 51.004 and 51.005 of the Texas Property Code (as the same may be
amended from time to time), and to the extent permitted by law, Lender shall be entitled to seek a deficiency judgment from Borrower
and any other party obligated on the Note equal to the difference between the amount owing on the Note and the amount for which
the Property was sold pursuant to judicial or nonjudicial foreclosure sale. Borrower expressly recognizes that this section constitutes
a waiver of the above cited provisions of the Texas Property Code which would otherwise permit Borrower and other persons against
whom recovery of deficiencies is sought or any indemnitor or guarantor independently (even absent the initiation of deficiency
proceedings against them) to present competent evidence of the fair market value of the Property as of the date of the foreclosure
sale and offset against any deficiency the amount by which the foreclosure sale price is determined to be less than such fair market
value. Borrower further recognizes and agrees that this waiver creates a presumption that the foreclosure sale price is equal to
the fair market value of the Property for purposes of calculating deficiencies owed by Borrower, any indemnitor or guarantor, and
others against whom recovery of a deficiency is sought.

 

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(b)        Alternative to
Waiver. Alternatively, in the event the waiver provided for in subsection (a) above is determined by a court of competent jurisdiction
to be unenforceable, the provisions of this Section 17.3(b) shall be the basis for the finder of fact’s determination
of the fair market value of the Property as of the date of the foreclosure sale in proceedings governed by Sections 51.003, 51.004
and 51.005 of the Texas Property Code (as amended from time to time). In such event, (i) the Property shall be valued in an “as
is” condition as of the date of the foreclosure sale, without any assumption or expectation that the Property will be repaired
or improved in any manner before a resale of the Property after foreclosure; (ii) the valuation shall be based upon an assumption
that the foreclosure purchaser desires a resale of the Property for cash promptly (but no later than 12 months) following the foreclosure
sale; (iii) all reasonable closing costs customarily borne by the seller in commercial real estate transactions should be deducted
from the gross fair market value of the Property, including, without limitation, brokerage commissions, title insurance, a survey
of the Property, tax prorations, attorneys’ fees, and marketing costs; (iv) the gross fair market value of the Property shall
be further discounted to account for estimated holding costs, if any, in excess of estimated operating revenues associated with
maintaining the Property pending sale, including, without limitation, utilities expenses, property management fees, taxes and assessments
(to the extent not accounted for in item (iii) above), and other maintenance, operational and ownership expenses; and (v) any expert
opinion testimony given or considered in connection with a determination of the fair market value of the Property must be given
by persons having at least five (5) years’ experience in appraising property similar to the Property and who have conducted
and prepared a complete written appraisal of the Property taking into consideration the factors set forth above.

 

Section 17.4.        SPECIFIC
NOTICE REGARDING INDEMNITIES. IT IS EXPRESSLY AGREED AND UNDERSTOOD THAT THIS SECURITY INSTRUMENT INCLUDES INDEMNIFICATION
PROVISIONS WHICH, IN CERTAIN CIRCUMSTANCES, COULD INCLUDE AN INDEMNIFICATION BY BORROWER OF LENDER FROM CLAIMS OR LOSSES ARISING
AS A RESULT OF LENDER’S OWN NEGLIGENCE.

 

Section 17.5.        Financing
Statement. This Security Instrument shall also be effective as a financing statement
covering as-extracted collateral subject to, and pursuant to the provisions of, Section 9.301 of the Uniform Commercial Code –
Secured Transactions, as adopted in Texas as the same may be later amended, and is to be filed for record in the real estate records
of the county where the Property is located.

 

Section 17.6.        Time
is of the Essence. Time is of the essence with respect to all provisions of this Security
Instrument.

 

Section 17.7.        Texas
Assignment of Rents Act. This is a present assignment and Lender’s right to the
Rents is not contingent upon, and may be exercised without, possession of the Property. The assignment of rents is subject to
Chapter 64 of the Texas Property Code (or its successor). Accordingly, Lender agrees to comply with such statute, including, without
limitation, the notice requirement. For purposes of notice, Borrower’s address is indicated in the preamble. 

 

    	22

    	 

    

 

Section 17.8.        Notice
of No Oral Agreements. Borrower and Lender hereby take notice of and agree to the following:

 

(a)        PURSUANT TO SUBSECTION
26.02(b) OF THE TEXAS BUSINESS AND COMMERCE CODE, A LOAN AGREEMENT IN WHICH THE AMOUNT INVOLVED THEREIN EXCEEDS $50,000 IN VALUE
IS NOT ENFORCEABLE UNLESS THE AGREEMENT IS IN WRITING AND SIGNED BY THE PARTY TO BE BOUND OR BY THAT PARTY’S AUTHORIZED REPRESENTATIVE.

 

(b)        PURSUANT TO SUBSECTION
26.02(c) OF THE TEXAS BUSINESS AND COMMERCE CODE, THE RIGHTS AND OBLIGATIONS OF THE PARTIES TO THE LOAN DOCUMENTS SHALL BE DETERMINED
SOLELY FROM THE LOAN DOCUMENTS, AND ANY PRIOR ORAL AGREEMENTS BETWEEN THE PARTIES ARE SUPERSEDED BY AND MERGED INTO THE LOAN DOCUMENTS.

 

(c)        THE LOAN DOCUMENTS
AND THIS SECURITY INSTRUMENT REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES THERETO AND MAY NOT BE CONTRADICTED BY EVIDENCE
OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES THERETO. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN
THE PARTIES.

 

[NO FURTHER TEXT ON THIS PAGE]

 

    	23

    	 

    

 

IN WITNESS WHEREOF,
this Security Instrument has been executed by the undersigned as of the day and year first above written.

 

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

 

ACKNOWLEDGMENT

 

	STATE OF	)
	 	) ss.
	COUNTY OF	)

 

This instrument was acknowledged
before me on _______________, 2014, by [_____________________ as ____________________ of ____________________, the ____________________
of Moody National Research-Austin Holding, LLC, on behalf of said limited liability company].

 

	 	 
	 	Notary Public
	 	 
	 	 
	 	Printed Name of Notary

 

My commission expires:

___________________

 

    	 

    	 

    

 

EXHIBIT A

 

LEGAL DESCRIPTION

 

Tract No.1 (Fee)

 

Lot 2, ALEGRE PARK, a subdivision in Travis
County, Texas, according to the map or plat recorded in Document No. 199900294, Official Public Records of Travis County, Texas.

 

Tract No.2 (Easement)

 

EASEMENT ESTATE ONLY as created and described
in that certain Declaration of Covenants, Conditions and Restrictions, dated January 19, 2000, recorded in Document No. 2000009294,
of the Official Public Records of Travis County, Texas, and being over and across Lots 1, 3 and 4, ALEGRE PARK, a subdivision in
Travis County, Texas, according to the map or plat recorded in Document No. 199900294, Official Public Records of Travis County.

 

Tract No.3 (Easement)

 

EASEMENT ESTATE ONLY as created and described
in that certain Declaration of Easements and Restrictions, dated October 19, 1999, recorded in Document No. 1999126840, of the
Official Records of Travis County, Texas, and being over and across Lots 1, 3 and 4, ALEGRE PARK, a subdivision in Travis County
Texas, according to the map or plat recorded in Document No. 199900294, Official Public Records of Travis County, Texas.

 

Tract No.4 (Easement)

 

EASEMENT ESTATE ONLY as created and described
in that certain Declaration of Easements and Restrictive Covenant Regarding Unified Development and Maintenance of Drainage Facilities,
dated August 21, 2012, recorded in Document No. 2013011982, Official Public Records of Travis County, Texas, and being over and
across Lots 1, 3 and 4, ALEGRE PARK, a subdivision in Travis County, Texas, according to the map or plat recorded in Document No.
199900294, Official Public Records of Travis County, Texas.

 

A-1Moody National REIT, I Inc. POS AM 

EXHIBIT
10.113

 

Loan
No. 31-0926091

 

GUARANTY
OF RECOURSE OBLIGATIONS

 

FOR
VALUE RECEIVED, and to induce 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,
“Lender”), to lend to MOODY NATIONAL RESEARCH-AUSTIN HOLDING, LLC, a Delaware limited liability company,
having its principal place of business at 6363 Woodway, Suite 110, Houston, Texas 77057 (“Borrower”), the principal
sum of NINETEEN MILLION DOLLARS ($19,000,000.00) (the “Loan”), evidenced by that certain Promissory Note (as
the same may be amended, restated, replaced, split or otherwise modified, the “Note”) and that certain Loan
Agreement (as the same may be amended, restated, replaced or otherwise modified the “Loan Agreement”) and secured
by that certain Deed of Trust, Assignment of Leases and Rents, Security Agreement and Fixture Filing (the “Security Instrument”)
Guarantor (defined below) is delivering this Guaranty (defined below) to Lender. The Note, the Security Instrument, the Loan Agreement
and all other documents, agreements and certificates executed and/or delivered in connection with the Loan, as the same may be
amended, restated, replaced, supplemented or otherwise modified from time to time, are collectively referred to herein as the
“Loan Documents”. Capitalized terms not otherwise defined herein have the meanings set forth in the Loan Agreement.

 

1.                 
As of this 19th day of November, 2014, the undersigned, MOODY NATIONAL REIT I, INC., a Maryland corporation,
having an address at 6363 Woodway, Suite 110, Houston, Texas 77057 (hereinafter referred to as “Guarantor”),
hereby absolutely and unconditionally guarantees to Lender the prompt and unconditional payment of the Guaranteed Obligations
(hereinafter defined).

 

2.                 
It is expressly understood and agreed that this is a continuing guaranty and that the obligations of Guarantor hereunder are and
shall be absolute under any and all circumstances, without regard to the validity, regularity or enforceability of the Note, the
Loan Agreement, the Security Instrument or the other Loan Documents, a true copy of each of said documents Guarantor hereby acknowledges
having received and reviewed.

 

3.                 
The term “Debt” as used in this Guaranty of Recourse Obligations (this “Guaranty”) shall
mean (i) the outstanding principal amount set forth in, and evidenced by, the Loan Agreement and the Note together with all interest
accrued and unpaid thereon and all other sums due to Lender in respect of the Loan under the Note, the Loan Agreement or the other
Loan Documents, and (ii) all sums advanced and costs and expenses incurred (including unpaid or unreimbursed servicing and special
servicing fees) by Lender in connection with the enforcement and/or collection of the Debt or any part thereof.

 

    	 

    	 

    

 

4.                 
The term “Guaranteed Obligations” as used in this Guaranty shall mean all obligations and liabilities of Borrower
for which Borrower shall be personally liable pursuant to Article 13 of the Loan Agreement.

 

5.                 
Any indebtedness of Borrower to Guarantor now or hereafter existing (including, but not limited to, any rights to subrogation
or reimbursement Guarantor may have as a result of any payment by Guarantor under this Guaranty, collectively “Guarantor
Claims”), together with any interest thereon, shall be, and such indebtedness is, hereby deferred, postponed and subordinated
to the prior payment in full of the Debt. During the continuance of an Event of Default or of any Default, Guarantor shall not
receive or collect, directly or indirectly, from Borrower or any other party any amount upon the indebtedness of Borrower in respect
of claims other than subrogation or reimbursement. Until payment in full of the Debt (and including interest accruing on the Note
after the commencement of a proceeding by or against Borrower under the Bankruptcy Code, which interest the parties agree shall
remain a claim that is prior and superior to any claim of Guarantor notwithstanding any contrary practice, custom or ruling in
cases under the Bankruptcy Code generally), Guarantor agrees not to accept any payment or satisfaction of any kind of indebtedness
of Borrower to Guarantor in respect of any rights of subrogation or reimbursement. In the event of receivership, bankruptcy, reorganization,
arrangement, debtor’s relief, or other insolvency proceedings involving Guarantor as debtor, Lender shall have the right
to prove its claim in any such proceeding so as to establish its rights hereunder and receive directly from the receiver, trustee
or other court custodian dividends and payments which would otherwise be payable upon Guarantor Claims. Guarantor hereby assigns
such dividends and payments to Lender. If Guarantor shall comprise more than one person, firm or corporation, Guarantor agrees
that until such payment in full of the Debt, (a) no one of them shall accept payment from the others by way of contribution on
account of any payment made hereunder by such party to Lender, (b) no one of them will take any action to exercise or enforce
any rights to such contribution, and (c) if any of Guarantor should receive any payment, satisfaction or security for any indebtedness
of Borrower to any of Guarantor for payment made hereunder by the recipient to Lender, the same shall be delivered to Lender in
the form received, endorsed or assigned as may be appropriate for application on account of, or as security for, the Debt and
until so delivered, shall be held in trust for Lender as security for the Debt.

 

6.                 
Guarantor agrees that, with or without notice or demand, Guarantor will reimburse Lender, to the extent that such reimbursement
is not made by Borrower, for all costs and expenses (including counsel fees) incurred by Lender in connection with the collection
of the Guaranteed Obligations or any portion thereof or with the enforcement of this Guaranty.

 

7.                 
All moneys available to Lender for application in payment or reduction of the Debt received from any source other than Guarantor
may be applied by Lender in such manner and in such amounts and at such time or times and in such order and priority as Lender
may see fit to the payment or reduction of such portion of the Debt as Lender may elect. Payments by Guarantor to Lender pursuant
to this Agreement shall be applied against payment of the Guaranteed Obligations and any other reimbursement obligations of Guarantor
pursuant to this Guaranty (including, without limitation, Section 6 hereof) in such manner and in such amounts and at such time
or times and in such order and priority as Lender may see fit to the payment or reduction of the foregoing obligations of Guarantor
as Lender may elect.

 

    	2

    	 

    

 

8.                 
Guarantor waives: (a) any defense based upon any legal disability or other defense of Borrower, any other guarantor or other person,
or by reason of the cessation or limitation of the liability of Borrower from any cause other than full payment of all sums payable
under the Loan Agreement or any of the other Loan Documents; (b) any defense based upon any lack of authority of the officers,
directors, partners or agents acting or purporting to act on behalf of Borrower or any principal of Borrower or any defect in
the formation of Borrower or any principal of Borrower; (c) any defense based upon the application by Borrower of the proceeds
of the Loan for purposes other than the purposes represented by Borrower to Lender or intended or understood by Lender or Guarantor;
(d) all rights and defenses arising out of an election of remedies by Lender; (e) any defense based upon Lender’s failure
to disclose to Guarantor any information concerning Borrower’s financial condition or any other circumstances bearing on
Borrower’s ability to pay all sums payable under the Loan Agreement or any of the other Loan Documents; (f) any defense
based upon any statute or rule of law which provides that the obligation of a surety must be neither larger in amount nor in any
other respects more burdensome than that of a principal; (g) any defense based upon Lender’s election, in any proceeding
instituted under the Bankruptcy Code, of the application of Section 1111(b)(2) of the Bankruptcy Code or any successor statute;
(h) any defense based upon any borrowing or any grant of a security interest under Section 364 of the Bankruptcy Code; (i) presentment,
demand, protest and notice of any kind; and (j) the benefit of any statute of limitations affecting the liability of Guarantor
hereunder or the enforcement hereof. In addition, Guarantor waives all rights and defenses that Guarantor may have because Borrower’s
debt is secured by real property. This means, among other things: (1) Lender may collect from Guarantor without first foreclosing
on any real or personal property collateral pledged by Borrower; and (2) if Lender forecloses on any real property collateral
pledged by Borrower, then (i) the amount of the debt may be reduced only by the price for which that collateral is sold at the
foreclosure sale, even if the collateral is worth more than the sale price, and (ii) Lender may collect from Guarantor even if
Lender, by foreclosing on the real property collateral, has destroyed any right Guarantor may have to collect from Borrower. The
foregoing sentence is an unconditional and irrevocable waiver of any rights and defenses Guarantor may have because Borrower’s
debt is secured by real property. Finally, Guarantor agrees that the payment of all sums payable under the Loan Agreement or any
of the other Loan Documents or any part thereof or other act which tolls any statute of limitations applicable to the Note or
the other Loan Documents shall similarly operate to toll the statute of limitations applicable to Guarantor’s liability
hereunder.

 

Guarantor
hereby acknowledges that: (a) as part of Lender’s consideration for entering into this transaction, Lender has specifically
bargained for the waiver and relinquishment by Guarantor of all such defenses and (b) Guarantor has had the opportunity to seek
and receive legal advice from skilled legal counsel in the area of financial transactions of the type reflected in this Guaranty
and the Loan Documents. Guarantor hereby represents and confirms to Lender that Guarantor is fully informed regarding, and that
Guarantor does thoroughly understand, (i) the nature of all such possible defenses, (ii) the circumstances under which those
defenses may arise, (iii) the benefits which those defenses might confer upon Guarantor, and (iv) the legal consequences to Guarantor
of waiving those defenses. Guarantor acknowledges that Guarantor has entered into this Guaranty, and both undertaken Guarantor’s
obligations and given its unconditional waiver with the intent that this Guaranty and all such waivers shall be fully enforceable
by Lender, and that Lender has been induced to enter into this transaction in material reliance upon the presumed full enforceability
thereof.

 

    	3

    	 

    

 

9.                 
Guarantor further agrees that the validity of this Guaranty and the obligations of Guarantor hereunder shall in no way be terminated,
affected or impaired by reason of (a) the assertion by Lender of any rights or remedies which it may have under or with respect
to the Note, the Loan Agreement, the Security Instrument, or the other Loan Documents against any Person obligated thereunder
or against the owner of the Property, (b) any failure to file or record any of such instruments or to take or perfect any security
intended to be provided thereby, (c) the release or exchange of any property covered by the Security Instrument or other collateral
for the Loan, (d) Lender’s failure to exercise, or delay in exercising, any such right or remedy or any right or remedy
Lender may have hereunder or in respect to this Guaranty, (e) the commencement of a case under the Bankruptcy Code by or against
any person obligated under the Note, the Loan Agreement, the Security Instrument or the other Loan Documents, or the death of
any Guarantor, (f) by any partial or total transfer or pledge of the interests in Borrower, or in any direct or indirect owner
of Borrower, and/or the reconstitution of Borrower as a result of such transfer or pledge, regardless of whether any of the foregoing
is permitted under the Loan Documents, or (g) any payment made on the Debt or any other indebtedness arising under the Note, the
Loan Agreement, the Security Instrument or the other Loan Documents, whether made by Borrower or Guarantor or any other person,
which is required to be refunded pursuant to any bankruptcy or insolvency law; it being understood that no payment so refunded
shall be considered as a payment of any portion of the Debt, nor shall it have the effect of reducing the liability of Guarantor
hereunder. In the event that pursuant to any insolvency, bankruptcy, reorganization, receivership or other debtor relief law or
any judgment, order or decision thereunder Lender must rescind or restore any payment or any part thereof received by Lender in
satisfaction of the Guaranteed Obligations, as set forth herein, any prior release or discharge from the terms of this Guaranty
given to Guarantor by Lender shall be without effect and this Guaranty shall remain in full force and effect. It is the intention
of Borrower and Guarantor that the Guaranteed Obligations hereunder shall not be discharged except by Guarantor’s performance
of such Guaranteed Obligations and then only to the extent of such performance. It is further understood, that if Borrower shall
have taken advantage of, or be subject to the protection of, any provision in the Bankruptcy Code, the effect of which is to prevent
or delay Lender from taking any remedial action against Borrower, including the exercise of any option Lender has to declare the
Debt due and payable on the happening of any default or event by which under the terms of the Note, the Loan Agreement, the Security
Instrument or the other Loan Documents, the Debt shall become due and payable, Lender may, as against Guarantor, nevertheless,
declare the Debt due and payable and enforce any or all of its rights and remedies against Guarantor provided for herein.

 

10.             
Guarantor warrants and acknowledges that: (a) Lender would not make the Loan but for this Guaranty; (b) there are no
conditions precedent to the effectiveness of this Guaranty and this Guaranty shall be in full force and effect and binding on
Guarantor regardless of whether Lender obtains other collateral or any guaranties from others or takes any other action
contemplated by Guarantor; (c) Guarantor has established adequate means of obtaining from sources other than Lender, on a
continuing basis, financial and other information pertaining to Borrower’s financial condition, the Property and
Borrower’s activities relating thereto, and the status of Borrower’s performance of obligations under the Loan
Documents, and Guarantor agrees to keep adequately informed from such means of any facts, events or circumstances which might
in any way affect Guarantor’s risks hereunder and Lender has not made any representation to Guarantor as to any such
matters; (d) the most recent financial statements of Guarantor previously delivered to Lender are true and correct in all
respects, have been prepared in accordance with GAAP or in accordance with other principles acceptable to Lender in its
reasonable discretion (consistently applied) and fairly present the financial condition of Guarantor in all material respects
as of the respective dates thereof, and no material adverse change has occurred in the financial condition of Guarantor since
the respective dates thereof; (e) Guarantor has not and will not, without the prior written consent of Lender, sell,
lease, assign, encumber, hypothecate, transfer or otherwise dispose of all or substantially all of Guarantor’s assets,
or any interest therein, other than in the ordinary course of Guarantor’s business; and (f) Guarantor has not and
will not cause or consent to any action or failure to act that would result in Borrower failing to be at all times a
“single purpose entity” as described in Article 5 of the Loan Agreement.

 

    	4

    	 

    

 

11.             
So long as the Loan or any other obligation guaranteed hereby remains outstanding (other than, following the termination of the
Loan Agreement and all other Loan Documents, contingent indemnification obligations as to which no claim has been made), Guarantor
shall provide to Lender (i) within one hundred (100) days after the end of each fiscal year and forty five (45) days after the
end of each calendar quarter, (A) financial statements of Guarantor covering the corresponding period then ended including a balance
sheet, an income and expenses statement, (B) a statement of cash flow and (C) a statement of change in financial position, prepared
by a Responsible Officer of Guarantor, together with a certificate of Guarantor that the Minimum Financial Criteria (defined below)
continue to be satisfied (including Guarantor’s calculation of Guarantor’s Net Worth and Liquidity), each of such
statements delivered pursuant to this clause (i) shall be certified as being true, correct and complete in all material respects
by a Responsible Officer of Guarantor, (ii) within ten (10) days after filing, a complete copy of Guarantor’s federal and
(to the extent applicable) state income tax returns for the immediately preceding tax year, and (iii) such other information reasonably
requested by Lender and reasonably available to Guarantor. Guarantor agrees that all financial statements to be delivered to Lender
pursuant to this Section 11 shall: (i) be complete and correct in all material respects; (ii) present fairly and accurately the
financial condition of Guarantor; (iii) disclose all liabilities that are required to be reflected or reserved against; and
(iv) be prepared (A) in hardcopy and electronic formats and (B) in accordance with GAAP or in accordance with other principles
acceptable to Lender in its reasonable discretion (consistently applied).

 

Furthermore,
each legal entity and individual obligated on this Guaranty hereby authorizes Lender to order and obtain, from a credit reporting
agency of Lender’s choice, a third party credit report on such legal entity and individual.

 

12.             
Guarantor further covenants that this Guaranty shall remain and continue in full force and effect as to any modification, extension
or renewal of the Note, the Loan Agreement, the Security Instrument, or any of the other Loan Documents, that Lender shall not
be under a duty to protect, secure or insure any security or lien provided by the Security Instrument or other such collateral,
and that other indulgences or forbearance may be granted under any or all of such documents, all of which may be made, done or
suffered without notice to, or further consent of, Guarantor.

 

    	5

    	 

    

 

13.             
As a further inducement to Lender to make the Loan and in consideration thereof, Guarantor further covenants and agrees (a) that
in any action or proceeding brought by Lender against Guarantor on this Guaranty, Guarantor shall and does hereby waive trial
by jury, (b) Guarantor will maintain a place of business or an agent for service of process in Texas (the “Property
State”) and give prompt notice to Lender of the address of such place of business and of the name and address of any
new agent appointed by it, as appropriate, (c) the failure of Guarantor’s agent for service of process to give it notice
of any service of process will not impair or affect the validity of such service or of any judgment based thereon, (d) if, despite
the foregoing, there is for any reason no agent for service of process of Guarantor available to be served, and if Guarantor at
that time has no place of business in the Property State then Guarantor irrevocably consents to service of process by registered
or certified mail, postage prepaid, to it at its address given in or pursuant to the first paragraph hereof, Guarantor hereby
waiving personal service thereof, (e) that within thirty days after such mailing, Guarantor so served shall appear or answer to
any summons and complaint or other process and should Guarantor so served fail to appear or answer within said thirty-day period,
said Guarantor shall be deemed in default and judgment may be entered by Lender against the said party for the amount as demanded
in any summons and complaint or other process so served, (f) intentionally omitted, (g) with respect to any claim or action arising
hereunder, Guarantor (i) irrevocably submits to the nonexclusive jurisdiction of the courts of the State where the Property is
located and the United States District Court located in the county in which the Property is located, and appellate courts from
any thereof, and (ii) irrevocably waives any objection which it may have at any time to the laying on venue of any suit, action
or proceeding arising out of or relating to this Guaranty brought in any such court, irrevocably waives any claim that any such
suit, action or proceeding brought in any such court has been brought in an inconvenient forum, and (h) nothing in this Guaranty
will be deemed to preclude Lender from bringing an action or proceeding with respect hereto in any other jurisdiction.

 

14.             
This is a guaranty of payment and not of collection and Guarantor shall be a primary obligor of the Guaranteed Obligations. Upon
the Guaranteed Obligations being incurred by Lender or upon any default of Borrower under the Note, the Loan Agreement, the Security
Instrument or the other Loan Documents, Lender may, at its option, proceed directly and at once, without notice, against Guarantor
to collect and recover the full amount of the liability hereunder or any portion thereof, without proceeding against Borrower
or any other person, or foreclosing upon, selling, or otherwise disposing of or collecting or applying against any of the mortgaged
property or other collateral for the Loan.

 

15.             
Each reference herein to Lender shall be deemed to include its successors and assigns, to whose favor the provisions of this Guaranty
shall also inure. Each reference herein to Guarantor shall be deemed to include the heirs, executors, administrators, legal representatives,
successors and assigns of Guarantor, all of whom shall be bound by the provisions of this Guaranty.

 

16.             
If any party hereto shall be a partnership, the agreements and obligations on the part of Guarantor herein contained shall remain
in force and application notwithstanding any changes in the individuals composing the partnership and the term “Guarantor”
shall include any altered or successive partnerships but the predecessor partnerships and their partners shall not thereby be
released from any obligations or liability hereunder.

 

    	6

    	 

    

 

17.             
It is the intent of Guarantor and Lender that the obligations and liabilities of Guarantor hereunder are absolute and unconditional
under any and all circumstances and that until the Guaranteed Obligations are fully and finally paid and performed, and not subject
to refund or disgorgement, the obligations and liabilities of Guarantor hereunder shall not be discharged or released, in whole
or in part, by any act or occurrence that might, but for the provisions of this Guaranty, be deemed a legal or equitable discharge
or release of a Guarantor. This Guaranty shall be deemed to be continuing in nature and shall remain in full force and effect
and shall survive the exercise of any remedy by Lender under the Security Instrument or any of the other Loan Documents, including,
without limitation, any foreclosure or deed in lieu of foreclosure.

 

18.             
All understandings, representations and agreements heretofore had with respect to this Guaranty are merged into this Guaranty
which alone fully and completely expresses the agreement of Guarantor and Lender.

 

19.             
This Guaranty may be executed in one or more counterparts by some or all of the parties hereto, each of which counterparts shall
be an original and all of which together shall constitute a single agreement of Guaranty. The failure of any party hereto to execute
this Guaranty, or any counterpart hereof, shall not relieve the other signatories from their obligations hereunder.

 

20.             
This Guaranty may not be modified, amended, waived, extended, changed, discharged or terminated orally or by any act or failure
to act on the part of Lender or Borrower, 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.

 

21.             
This Guaranty shall be deemed to be a contract entered into pursuant to the laws of the Property State and shall in all respects
be governed, construed, applied and enforced in accordance with applicable federal law and the laws of the Property State, without
reference or giving effect to any choice of law doctrine.

 

22.             
Guarantor (and its representative, executing below, if any) hereby warrants, represents and covenants to Lender that:

(a)               
Guarantor is duly organized and existing and in good standing under the laws of the state in which such entity is organized. Guarantor
is currently qualified or licensed (as applicable) and shall remain qualified or licensed to do business in each jurisdiction
in which the nature of its business requires it to be so qualified or licensed.

 

(b)              
The execution and delivery by Guarantor (and its representative executing below, if any) of the Loan Documents to which Guarantor
is a party has been duly authorized and the Loan Documents to which Guarantor is a party constitute valid and binding obligations
of Guarantor, enforceable in accordance with their terms, except as such enforcement may be limited by bankruptcy, insolvency,
moratorium or other laws affecting the enforcement of creditors’ rights, or by the application of rules of equity.

 

(c)               
The execution, delivery and performance by Guarantor of each of the Loan Documents to which Guarantor is a party do not
violate any provision of any law or regulation, or result in any breach or default under any contract, obligation,
indenture or other instrument to which Guarantor is a party or by which Guarantor is bound.

 

    	7

    	 

    

 

(d)              
There are no pending or, to Guarantor’s knowledge, threatened actions, claims, investigations, suits or proceedings before
any governmental authority, court or administrative agency which affect the financial condition or operations of Guarantor, Borrower
and/or the Property which could reasonably be expected, either individually or in the aggregate, to have a material adverse effect
on Guarantor’s ability to perform its obligations hereunder or under the Environmental Indemnity Agreement executed by Guarantor
for the benefit of Lender in connection with the Loan (the “Environmental Indemnity Agreement”).

 

(e)               
There are no pending assessments or adjustments of Guarantor’s income tax payable with respect to any year.

 

(f)               
None of the transactions contemplated by the Loan Documents will be or have been made with an actual intent to hinder, delay or
defraud any present or future creditors of Borrower or Guarantor, and Borrower and Guarantor, on the date hereof, will have received
fair and reasonably equivalent value in good faith for the continued grant of the liens or security interests effected by the
Loan Documents. As of the date hereof, Borrower and Guarantor are solvent and will not be rendered insolvent by the transactions
contemplated by the Loan Documents. As of the date hereof, Borrower and Guarantor are able to pay their respective debts as they
become due.

 

(g)              
Guarantor shall promptly notify Lender in writing of any litigation pending or threatened against Guarantor claiming damages in
excess of Fifty Thousand and No/100 Dollars ($50,000.00) and of all pending or threatened litigation against Guarantor if the
aggregate damage claims against Guarantor exceed One Hundred Thousand and No/100 Dollars ($100,000.00).

 

(h)              
As of the date hereof, the representations and warranties set forth in Sections 3.5, 3.8, 3.21 and 3.29 of the Loan Agreement
are true and correct with respect to Guarantor. As of the date hereof and continuing thereafter for the term of the Loan, the
representations and warranties set forth in Sections 3.7 and 3.28 of the Loan Agreement are true and correct. In connection with
Section 3.29 of the Loan Agreement, Guarantor covenants and agrees that in the event Guarantor receives any notice that Borrower,
Sponsor or Guarantor (or any of their respective beneficial owners, affiliates or participants) or any Person that has an interest
in the Property is indicted, arraigned, or custodially detained on charges involving money laundering or predicate crimes to money
laundering, Guarantor shall immediately notify Lender. With respect to each referenced section of the Loan Agreement contained
in this Section 22(h), it is understood that wherever the term “Borrower” is used in each such section it shall be
deemed to be “Guarantor”.

 

(i)                
Guarantor shall keep and maintain or will cause to be kept and maintained proper and accurate books and records reflecting
the financial affairs of Guarantor. Lender shall have the right from time to time during normal business hours upon
reasonable notice to Guarantor to examine such books and records at the office of Guarantor or other Person maintaining such
books and records and to make such copies or extracts thereof as Lender shall desire.

 

    	8

    	 

    

 

 

(j)                
So long as the Loan and any of the obligations set forth in the Loan Documents remain outstanding, Guarantor shall maintain (i)
a minimum Net Worth (as defined herein) of not less than $19,000,000.00 and (ii) Liquidity (as defined herein) of no less than
$1,900,000.00 (the above items, (i) and (ii), collectively, the “Minimum Financial Criteria”).

 

As
used herein:

 

“Net
Worth” shall mean net worth as calculated in accordance with generally accepted accounting principles (or other principles
acceptable to Lender).

 

“Liquidity”
shall mean (a) unencumbered Cash and Cash Equivalents of Guarantor and (b) marketable securities of Guarantor, each
valued in accordance with GAAP (or other principles acceptable to Lender).

 

“Cash
and Cash Equivalents” shall mean all unrestricted or unencumbered (A) cash and (B) any of the following: (x) marketable
direct obligations issued or unconditionally guaranteed by the United States Government or issued by an agency thereof and backed
by the full faith and credit of the United States; (y) marketable direct obligations issued by any state of the United States
of America or any political subdivision of any such state or any public instrumentality thereof which, at the time of acquisition,
has one of the two highest ratings obtainable from any two (2) of Standard & Poor’s Corporation, Moody’s Investors
Service, Inc. or Fitch Investors (or, if at any time no two of the foregoing shall be rating such obligations, then from such
other nationally recognized rating services as may be acceptable to Lender) and is not listed for possible down-grade in any publication
of any of the foregoing rating services; (z) domestic certificates of deposit or domestic time deposits or repurchase agreements
issued by any commercial bank organized under the laws of the United States of America or any state thereof or the District of
Columbia having combined capital and surplus of not less than $1,000,000,000.00, which commercial bank has a rating of at least
either AA or such comparable rating from Standard & Poor’s Corporation or Moody’s Investors Service, Inc., respectively;
(aa) any funds deposited or invested by Guarantor in accounts maintained with Lender and which are not held in escrow for,
or pledged as security for, any obligations of Guarantor, Borrower and/or any of their affiliates; (bb) money market funds having
assets under management in excess of $2,000,000,000.00 and/or (cc) any unrestricted stock, shares, certificates, bonds, debentures,
notes or other instrument which constitutes a “security” under the Security Act of 1933 (other than Guarantor, Borrower
and/or any of their affiliates) which are freely tradable on any nationally recognized securities exchange and are not otherwise
encumbered by Guarantor.

 

[NO
FURTHER TEXT ON THIS PAGE]

 

    	9

    	 

    

 

 

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

 

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

 

	 	By:	/s/ Brett C.
    Moody
	 	 	Name: Brett C. Moody
	 	 	Title: President

 

10

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