Document:

EX-10.3

 Exhibit 10.3 

HOTEL 
 MANAGEMENT AGREEMENT 

Between 
 SPRING STREET HOTEL OPCO
LLC 
 and 
 BOAST HOTEL
MANAGEMENT COMPANY 
 Dated 

August 19, 2016 

 TABLE OF CONTENTS 
  

									
	 	 	 	  	 	  	Page	 
	 HOTEL MANAGEMENT AGREEMENT
	  	 	1	  
		
	 ARTICLE 1    DEFINITIONS
	  	 	1	  
		 	 Section 1.01.
	  	Definitions.	  	 	1	  
		
	 ARTICLE 2     TERM OF AGREEMENT
	  	 	9	  
		 	Section 2.01.	  	Term.	  	 	9	  
		
	 ARTICLE 3    OPERATION OF THE HOTELS
	  	 	9	  
		 	Section 3.01.	  	Representations by Operator; Engagement of Operator.	  	 	9	  
		 	Section 3.02.	  	Standards of Operation.	  	 	9	  
		 	Section 3.03.	  	Limitations on Operator’s Authority	  	 	12	  
		 	Section 3.04.	  	Reservations Services and Revenue Management.	  	 	13	  
		 	Section 3.05.	  	Marketing.	  	 	14	  
		 	Section 3.06.	  	Consultations Between Lessee and Operator.	  	 	14	  
		 	Section 3.07.	  	Transactions with Affiliates and Other Relationships.	  	 	14	  
		 	Section 3.08.	  	Regional Manager.	  	 	15	  
		 	Section 3.09.	  	Certain Expenses.	  	 	15	  
		
	 ARTICLE 4    INDEPENDENT CONTRACTOR
	  	 	15	  
		 	Section 4.01.	  	Operator Status.	  	 	15	  
		 	Section 4.02.	  	Employees.	  	 	16	  
		 	Section 4.03.	  	Employee Expenses.	  	 	16	  
		 	Section 4.04.	  	Employee Benefit Plans.	  	 	17	  
		 	Section 4.05.	  	Execution of Agreements.	  	 	17	  
		
	 ARTICLE 5    INDEMNIFICATION
	  	 	18	  
		 	Section 5.01.	  	Indemnification by Operator.	  	 	18	  
		 	Section 5.02.	  	Limitations on Indemnification.	  	 	18	  
		 	Section 5.03.	  	Indemnification by Lessee.	  	 	18	  
		 	Section 5.04.	  	Survival of Indemnity.	  	 	19	  
		
	 ARTICLE 6    BUDGETS AND POLICY MEETINGS
	  	 	19	  
		 	Section 6.01.	  	Budgets.	  	 	19	  
		 	Section 6.02.	  	Budget Meetings.	  	 	20	  
		
	 ARTICLE 7    OPERATING EXPENSES
	  	 	20	  
		 	Section 7.01.	  	Payment of Operating Expenses.	  	 	20	  
		 	Section 7.02.	  	Operating Expenses Not an Obligation of Operator.	  	 	21	  
		
	 ARTICLE 8    BANK ACCOUNTS
	  	 	21	  
		 	Section 8.01.	  	Lessee Revenue Account.	  	 	21	  
		 	Section 8.02.	  	Operating Account.	  	 	21	  
		 	Section 8.03.	  	Ownership of Accounts.	  	 	22	  
		 	Section 8.04.	  	Distributions to Owner.	  	 	22	  
		 	Section 8.05.	  	Exculpation of Manager.	  	 	22	  
		 	Section 8.06.	  	Reimbursement of Manager.	  	 	23	  
		 	Section 8.07.	  	Reserve Fund.	  	 	23	  
		 	Section 8.08.	  	Working Capital Funds.	  	 	23	  

  
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	 ARTICLE 9    BOOKS, RECORDS AND STATEMENTS
	  	 	24	  
		 	Section 9.01.	  	Books and Records.	  	 	24	  
		 	Section 9.02.	  	Statements.	  	 	24	  
		
	 ARTICLE 10    OPERATOR’S FEE AND TRANSFERS TO LESSEE
	  	 	25	  
		 	Section 10.01.	  	Payment of Operator’s Fee.	  	 	25	  
		
	 ARTICLE 11    REPAIRS AND MAINTENANCE
	  	 	26	  
		
	 ARTICLE 12    INSURANCE
	  	 	26	  
		 	Section 12.01.	  	General.	  	 	26	  
		 	Section 12.02.	  	Workers’ Compensation and Other Employment Insurance.	  	 	26	  
		 	Section 12.03.	  	Approval of Companies and Cost by Owner and Lessee.	  	 	26	  
		 	Section 12.04.	  	Maintenance of Coverages.	  	 	27	  
		 	Section 12.05.	  	Waiver of Subrogation.	  	 	27	  
		 	Section 12.06.	  	Blanket Coverage.	  	 	27	  
		 	Section 12.07.	  	Employment Practice Liability.	  	 	27	  
		 	Section 12.08.	  	Cyber/Network/Privacy Liability.	  	 	28	  
		 	Section 12.09.	  	Liquor Liability.	  	 	28	  
		 	Section 12.10.	  	Automobile Liability.	  	 	28	  
		 	Section 12.11.	  	General Liability.	  	 	29	  
		 	Section 12.12.	  	Property.	  	 	29	  
		 	Section 12.13.	  	Crime.	  	 	29	  
		
	 ARTICLE 13    PROPERTY TAXES, LOCAL TAXES, LEVIES AND OTHER
ASSESSMENTS
	  	 	29	  
		 	Section 13.01.	  	Property Taxes.	  	 	29	  
		 	Section 13.02.	  	Lessee’s Right to Contest.	  	 	29	  
		
	 ARTICLE 14    DAMAGE OR DESTRUCTION—CONDEMNATION
	  	 	29	  
		 	Section 14.01.	  	Damage.	  	 	29	  
		 	Section 14.02.	  	Condemnation.	  	 	30	  
		
	 ARTICLE 15    USE OF NAME
	  	 	30	  
		
	 ARTICLE 16    TERMINATION
	  	 	30	  
		 	Section 16.01.	  	Inspection Failure.	  	 	30	  
		 	Section 16.02.	  	Performance Failure.	  	 	30	  
		 	Section 16.03.	  	Sale of Hotels.	  	 	31	  
		 	Section 16.04.	  	Bad Acts.	  	 	31	  
		 	Section 16.05.	  	Optional Termination.	  	 	32	  
		 	Section 16.06.	  	Lessee Change of Control.	  	 	32	  
		 	Section 16.07.	  	Operator Change of Control.	  	 	33	  
		 	Section 16.08.	  	Bookings Beyond Expiration of Term.	  	 	35	  
		 	Section 16.09.	  	Tax Law Change.	  	 	35	  
		 	Section16.10.	  	Termination Fees.	  	 	35	  
		
	 ARTICLE 17    DEFAULT AND REMEDIES
	  	 	35	  
		 	Section 17.01.	  	Events of Default- Remedies.	  	 	35	  
		 	Section 17.02.	  	Rights Not Exclusive.	  	 	37	  

  
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	 ARTICLE 18    NOTICES
	  	 	37	  
		 	Section 18.01.	  	Notices.	  	 	37	  
		
	 ARTICLE 19    ASSIGNMENT
	  	 	38	  
		 	Section 19.01.	  	No Assignment by Operator.	  	 	38	  
		 	Section 19.02.	  	Assignment by Lessee.	  	 	38	  
		
	 ARTICLE 20    SUBORDINATION
	  	 	39	  
		 	Section 20.01.	  	Subordination To Mortgage.	  	 	39	  
		 	Section 20.02.	  	Foreclosure.	  	 	39	  
		 	Section 20.03.	  	Estoppel Certificates.	  	 	39	  
		
	 ARTICLE 21    MISCELLANEOUS
	  	 	40	  
		 	Section 21.01.	  	Further Documentation and Reporting Compliance.	  	 	40	  
		 	Section 21.02.	  	Captions.	  	 	40	  
		 	Section 21.03.	  	Successors and Assigns.	  	 	40	  
		 	Section 21.04.	  	Competitive Market Area.	  	 	40	  
		 	Section 21.05.	  	Assumption of Post Termination Obligations.	  	 	40	  
		 	Section 21.06.	  	Entire Agreement.	  	 	41	  
		 	Section 21.07.	  	Governing Law.	  	 	41	  
		 	Section 21.08.	  	No Political Contributions.	  	 	41	  
		 	Section 21.09.	  	Eligible Independent Contractor.	  	 	41	  
		 	Section 21.10.	  	Time of the Essence.	  	 	42	  
		 	Section 21.11.	  	Offsets.	  	 	42	  
		 	Section 21.12.	  	Attorney’s Fees.	  	 	43	  
		 	Section 21.13.	  	Final Accounting.	  	 	43	  
		 	Section 21.14.	  	Franchisor Communications.	  	 	43	  

 EXHIBIT A — Hotel Properties and Owners 

EXHIBIT A-1 — Competitive Set 

EXHIBIT A-2 — Form of SPAR Inspection Form 

EXHIBIT A-4 — List of Operator’s Hotels Within 5 Mile Radius 

EXHIBIT B — Franchise Agreements 

  
 iii 

 HOTEL MANAGEMENT AGREEMENT 

This HOTEL MANAGEMENT AGREEMENT is made and entered into effective as of August 22, 2016, by and among SPRING STREET HOTEL OPCO LLC, a
Delaware limited liability company (“Lessee”), and BOAST HOTEL MANAGEMENT COMPANY, a Delaware limited liability company (“Operator”), with reference to the following facts: 

A. Lessee leases from the entity described on Exhibit A ( “Owner” and collectively, the “Owners”) the hotel property
described on Exhibit A ( “Hotel”) pursuant to one or more Lease Agreements described on Exhibit A (each, a “Lease” and collectively, the “Leases”); 

B. Lessee desires to engage Operator to operate and manage the Hotels listed on Exhibit A beginning on the Commencement Date in
accordance with the terms of this Agreement; 
 C. Operator desires to supply the services and to operate the Hotels beginning on the
Commencement Date in accordance with the terms of this Agreement; and 
 D. The parties desire that this Agreement, while it controls all of
the Hotels collectively, will represent an individual hotel management agreement for each Hotel described on Exhibit A, as it may be amended from time to time. 

NOW, THEREFORE, for and in consideration of the mutual covenants, conditions, stipulations, agreements and obligations hereinafter set forth
and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, Lessee and Operator covenant and agree as follows: 

ARTICLE 1 
 DEFINITIONS

 Section 1.01. Definitions. 

(a) As used herein, the following terms shall have the indicated meanings: 

“Adjusted Operating Expenses” shall mean Operating Expenses excluding Operator’s Fee, insurance premiums (with the exception of
the insurance described in Section 12.02), discretionary employee bonuses (to the extent exclusion is approved by Lessee), and Property real estate and personal property taxes. 

“Affiliate” shall mean (a) any person that, directly or indirectly, controls or is controlled by or is under common control
with such person, (b) any person that owns, beneficially, directly or indirectly, ten percent or more of the outstanding capital stock, shares or equity interests of such person, or (c) any officer, director, employee, partner or trustee
of such person or any person controlling, controlled by, or under common control with such person. 

  
 1 

 “Agreement” shall mean this Hotel Management Agreement and all amendments,
modifications, supplements, consolidations, extensions and revisions to this Hotel Management Agreement approved by Lessee and Operator. 

“Approved Budget” shall mean the Hotel Operating Budget prepared in accordance with Section 6.01 of this Agreement and approved
in writing by Lessee. 
 “CPI” shall mean the Consumer Price Index, all items for All Urban Consumers, published by the Bureau of
Labor Statistics of the United States Department of Labor as reported in The Wall Street Journal. 
 “Capital Improvements” will
mean all expenditures for replacements, substitutions and additions to Hotels and Hotel FF&E which are required to be capitalized in accordance with generally accepted accounting principles. 

“Commencement Date” shall mean August 22, 2016. 

“Competitive Set” for each Hotel means the hotels listed on Exhibit_A-1 attached hereto, or such other hotels as may be
reasonably agreed upon by Lessee and Operator from time to time during the Term. The Lessee and Operator shall discuss at least once a year, and upon any major change to the Hotel or an existing hotel in the Competitive Set, the composition of the
Competitive Set. Notwithstanding the foregoing to the contrary, the Competitive Set shall at all times consist of hotels in the market areas that are most comparable to the Hotel in quality, price, location and market (with due consideration given
to age, quality, size, amenities, amount of meeting space and business mix) (the “Market Considerations”), and in the event that any hotel within the then current Competitive Set suffers a material change during any period of a
Fiscal Year (including the cessation of operation for any period exceeding 7 days, a change in the standards of operation of a hotel (including any material brand license change or modification), or the occurrence of Force Majeure, then such hotel
shall be excluded during the period that such hotel doesn’t conform to the operations of the Hotel for any purpose that Competitive Set is used in this Agreement. Any changes to a Hotel’s Competitive Set must be approved by Lessee. 

“Event(s) of Default” shall mean one or more of the events or occurrences listed in Section 17.01 of this Agreement. 

“Fiscal Year” shall mean each twelve (12) month calendar year ending December 31 during the Operating Term, except that
the first Fiscal Year and the last Fiscal Year of the Operating Term may not be full calendar years. 
 “Force Majeure”
shall mean interruptions in the operation of the Hotel (or in the case of the hotels within the Competitive Set, to any such hotels) or any of its essential services on account of an interruption in any one or more of the utility services servicing
the Hotel, or on account of act of God, labor dispute not caused by Operator, shortage of labor or materials, earthquake, hurricane, flood, fire or other casualty, taking by eminent domain, civil commotion, riot, mob violence, insurrection,
malicious mischief, sabotage, rebellion, act of public enemy, invasion, embargo, or any similar cause beyond Operator’s reasonable control, but excluding any changes in economic or market conditions. For purpose of Force Majeure pertaining to
one or more hotels within the Competitive Set, the reference to the “Operator” means the respective operator or manager under the Competitive Set hotel that is affected by the interruption. 

  
 2 

 “Franchisor” shall mean the franchisor under the Franchise Agreements. 

“Franchisor Agreement” shall mean the franchise license agreement held by Lessee with respect to the Hotel as described in
Exhibit B as it may be amended from time to time. 
 “GAAP” shall mean generally accepted accounting principles and
procedures in the United States. 
 “Gross Hotel Income” shall mean all income and proceeds of sales received by Operator for
guest use, occupancy or enjoyment of the Hotel or for the sale of any goods, services or other items sold on or provided from the Hotel to guests in the ordinary course of the Hotel operation, and parking revenues but excluding the following:
(i) any excise, sales or use taxes or similar government charges collected directly from patrons or guests, or as a part of the sales price of any goods, services or displays, such as gross receipts, admission, cabaret or similar or equivalent
taxes; (ii) receipts from condemnation awards or sales in lieu of or under threat of condemnation; (iii) proceeds of insurance (other than proceeds from business interruption insurance received by Lessee which shall be allocated by Lessee
to any applicable periods); (iv) proceeds of sales of capital assets, furniture and Hotel Operating Equipment; (v) consideration received at the Hotel for hotel accommodations, goods and services to be provided at other hotels although
arranged by, for or on behalf of, Operator; (vi) proceeds of any financing; (vii) working capital provided by Lessee; (viii) any funds provided by Lessee to Operator whether for Operating Expenses or otherwise; (ix) interest
income and fees, rents and other revenues from telecommunications tower or similar leases or other leases or sub-leases of any part of the Property (x) other income or proceeds resulting other than from guest use or occupancy of the Hotel or
the Property, or any part thereof, or other than from the sale of goods, services or other items sold on or provided in connection with guest services at the Hotel in the ordinary course of business; (xi) tips and service charges paid to
employees; (xii) interest on accounts; (xiii) value of complimentary rooms, f&b, and services; (xiv) revenues of subtenants, concessionaires, and licensees, but rent and license fees aid to Lessee would be included. The parties
intend that Gross Hotel Income shall be computed in a manner consistent with “room rentals and other hotel services” computation of revenues on the Parent’s audited Consolidated Statements of Operations. 

“Holder” shall mean the holder of any Mortgage and the indebtedness secured thereby, and such holder’s successors and assigns.

 “Hotel Capital Budget” shall mean the budget relating to capital expenditures at a Hotel as described in Section 6.01.

 “Hotel FF&E” shall mean the furniture, furnishings, wall coverings, fixtures and hotel equipment for a Hotel and which
includes equipment required for operation of the kitchens, restaurants and laundry, office equipment, material handling equipment, cleaning and engineering equipment and vehicles. 

  
 3 

 “Hotel Operating Account” shall mean the bank account opened and maintained in
Operator’s name, or in a name designated by Operator, with a banking institution selected by Lessee, from which disbursements shall be made pursuant to the terms of this Agreement. 

“Hotel Operating Budget” shall mean the budget relating to the operation of the Hotel as described in Section 6.01. 

“Hotel Operating Equipment” shall mean linens, chinaware, glassware, silverware, uniforms, utensils and other non-consumable items
of similar nature. 
 “Hotel Operating Supplies” shall mean paper supplies, cleaning materials and similar consumable items. 

“Hotel Standards” shall mean the standards established by the respective Franchisor of the Hotel from time to time as well as those
identified in section 3.01. 
 “Hotels” shall mean the hotel properties described in Exhibit A hereto, as it may be amended
from time to time by mutual agreement of Lessee and Operator to add hotel properties or to delete hotel properties as a result of termination of this Agreement with respect to one or more hotel properties pursuant to the termination provisions set
forth in this Agreement. “Hotel” shall mean any hotel set forth on Exhibit A as it may be amended from time to time. 

“Incentive Fees” shall mean incentive compensation paid by Lessee to Operator for performance above budgeted expectations,
achievable to a maximum payout of 2% of Gross Hotel Income. The following will trigger Incentive Fee payouts: 
  

	 	(i)	Operator will earn an 1% incentive management fee on gross hotel income, should the hotel achieve sufficient profits in order to pay Owner a 9% yield on their total initial investment. Operator will be entitled to
an additional 1% incentive management fee on gross hotel income, should the hotel achieve sufficient profits in order to pay Owner a 10% yield on their total initial investment. In both cases, should the payment of the incentive management fee
diminish the achieved percentage yield below the prescribed threshold (9% or 10% respectively) the incentive management fee will not be achieved by operator. Incentive management fees will be paid within 15 days after final yearend financial
results have been properly audited by Owners auditors no earlier than March 1 but no later than May 1 of the following year.

“Initial Term” shall have the meaning set forth in Section 2.01. 

“Independent CPA” shall mean the firm of independent public accountants which is selected by Lessee from time to time. 

“Land” shall mean the real property described in Exhibit A to the Lease. 

“Lease” shall have the meaning set forth in the recitals. 

  
 4 

 “Lessee” shall have the meaning set forth in the recitals. 

“Lessee Revenue Account” shall mean the bank accounts opened and maintained in Lessee’s name, or in a name designated by
Lessee, with a banking institution selected by Lessee, into which all income, receipts and proceeds included in the definition of Gross Hotel Income (without exclusion of any of the items excluded from the definition of such term) shall be
deposited. 
 “Mortgage” shall mean any deed to secure debt, mortgage or deed of trust, from time to time, encumbering all or any
portion of a Property, together with all other instruments evidencing or securing payment of the indebtedness secured by such deed to secure debt, mortgage or deed of trust and all amendments, modifications, supplements, extensions, and revisions of
such mortgage, deed of trust and other instruments. 
 “NOI” shall mean Net Operating Income which shall be determined by
deducting Adjusted Operating Expenses from Gross Hotel Income. 
 “Operating Expenses” shall mean all costs and expenses of
maintaining, conducting and supervising the operation of the Property, to the extent set forth in an Approved Budget, incurred pursuant to this Agreement or as otherwise specifically provided herein which are properly attributable to the period
under consideration under Lessee’s system of accounting, including without limitation: 
  

	 	(i)	The cost of all food and beverages sold or consumed and of all Hotel Operating Equipment and Hotel Operating Supplies; 

  

	 	(ii)	Salaries and wages of on-site Hotel personnel, including costs of payroll taxes and employee benefits and amounts payable under bonus plans approved by Lessee. The salaries or wages of other employees or executives of
Operator, or any Affiliate of Operator shall in no event be Operating Expenses; 

  

	 	(iii)	The cost of all other goods and services obtained by Operator in connection with its operation of the Property including, without limitation, heat and utilities, office supplies and all services performed by third
parties, including leasing expenses in connection with telephone and data processing equipment and such other equipment as Lessee shall designate; 

  

	 	(iv)	The cost of repairs to and maintenance of the Property to keep the Property in good condition; 

  

	 	(v)	Insurance premiums for all insurance maintained with respect to the Property, including without limitation, property damage insurance, public liability insurance, workers’ compensation insurance or insurance
required by similar employee benefits acts, employment liability practices insurance, and such business interruption or other insurance as may be provided for protection against claim, liabilities and losses arising from the use and operation of the
Hotel and losses incurred with respect to deductibles applicable to the foregoing types of insurance; 

  
 5 

	 	(vi)	All taxes, assessments and other charges (other than federal, state or local income taxes and franchise taxes or the equivalent) payable by or assessed against Operator or Lessee with respect to the operation of the
Hotel, including water and sewer charges; 

  

	 	(vii)	Legal fees relating to Hotel operations (excluding legal fees with respect to employee claims), and real estate tax abatement and appeal services excluding legal fees with respect to employee claims; 

 

	 	(viii)	The costs and expenses of technical consultants and specialized operational experts for specialized services in connection with non-recurring work on operational, functional, decorating, design or construction problems
and activities, including reasonable third party fees reasonably deemed necessary by Lessee for the efficient operation of the Hotels; 

  

	 	(ix)	All expenses for marketing and sales, including all expenses of advertising, sales promotion and public relations activities at the Hotels, exclusive of Operator’s marketing manager and similar administrative
personnel (which expenses shall be borne by Operator); 

  

	 	(x)	Municipal, county and state license and permit fees; 

  

	 	(xi)	All normal and recurring fees, assessments and charges due and payable under Franchisor Agreements; 

  

	 	(xii)	Centralized Services, such as revenue management, approved in the operating budget. 

  

	 	(xiii)	Credit card fees, travel agent commissions and other third party reservation fees and charges; 

  

	 	(xiv)	All parking charges and parking rental fees and other expenses associated with revenues received by the Hotels related to parking operations, including valet services, including any related to the option lot;

  

	 	(xv)	All expenses related to the revenues included in Gross Hotel Income, including without limitation, expenses relating to telephone, vending, television, cable television, pay television and similar services;

  

	 	(xvi)	The costs of obtaining and keeping in force all licenses or permits (including liquor licenses, if any) necessary for the operation of the Hotel and in complying with governmental laws, rules, regulations, ordinances,
orders and requirements; 

  
 6 

	 	(xvii)	All reasonable travel expenses of Operator’s supervisory personnel on the next level above hotel manager, to include director of engineering, revenue manager and internal auditors (to the extent approved by Lessee)
for visits to the Hotels in the performance of their duties hereunder, but not including travel between Operator’s main office and Operator’s regional offices. Travel shall be limited to economy fares 

 

	 	(xviii)	The costs to send above property supervisory personnel to brand conferences, which costs shall be reimbursed in proportion to the number of Lessee’s hotels associated with the brand conference out of
Operator’s total portfolio of hotels managed associated with the specific brand conference. Such percentage of reimbursable costs shall be pre-approved by Lessee prior to the date of the conference. ; 

 

	 	(xix)	Other potential operating expenses which are budgeted for and approved by Lessee provided they are disclosed in advance to Lessee’s designated representative; and 

 

	 	(xx)	Operator’s Fee, if any. 

 Operating Expenses shall not include (a) depreciation and
amortization except as otherwise provided in this Agreement; (b) debt service; (c) capital expenditures per the Hotel Capital Budget; (d) lease payments to Owner; and (e) matters incidental to any exercise of the Seller’s
parking lot option; (f) All costs, expenses, salaries, wages or other compensation, and any recruitment costs, of any corporate, regional or other headquarters/corporate level employees of Operator, except to the extent such employees are
assigned to the Hotel on a temporary basis for at least five (5) consecutive days (but unless approved by Owner, not more than ten (10) consecutive days) to fill a vacant Executive Staff position, in which case a fair and equitable cost
and expense of the foregoing shall constitute an Operating Expense; (g) Any expenses of Operator’s principal or branch offices; (h) Any part of Operator’s capital expenses; (i) Operator’s overhead or general expenses,
including but not limited to duplicating, stationery and postage expenses incurred at Operator’s principal or branch offices, and Operator’s own fidelity, liability, errors and omissions and casualty insurance, except as may be expressly
assumed by Owner pursuant to the terms of this Agreement; (j) (k) Any expenses for advertising or promotional materials that feature Operator’s name or activities but which do not promote the Hotel, unless and to the extent approved
in advance by Owner to be an Operating Expense; (l) Any travel expenses of Operator, other than those described in clause (xvi) of the definition of Operating Expenses; (m) Any interest or penalty payment with respect to an imposition
or lien upon the Hotel imposed on Owner by reason of (1) the failure of Operator to make a payment required to be made by Operator under this Agreement when the funds therefor were available, or (2) the funds therefor were not available
and Operator failed to so notify Owner; provided, however, that interest or penalty payments for the first five (5) such failures in a Fiscal Year and interest or penalty payments incurred as a result of a good faith decision to contest the
imposition or lien, which could not be contested without incurrence thereof, shall be Operating Expenses; (n) Any cost for which Operator is liable under any indemnification or any other provision of this Agreement; and (o) Political or
charitable contributions made by Operator on its own behalf. 

  
 7 

 The parties intend that Operating Expenses shall be computed in a manner consistent with
“Hotel and property operations expenses” computation of expenses on the Parent’s Audited Consolidated Statements of Operations. 

“Operating Loss” shall mean for any period the amount by which Operating Expenses exceed Gross Hotel Income. 

“Operating Term” shall mean, with respect to any Hotel, the term of this Agreement as set forth in Section 2.01. 

“Operator” shall have the meaning set forth in the recitals. 

“Operator’s Fee” shall mean a monthly fee equal to 3% of Gross Hotel Income. 

“Owners” shall mean the entities described on Exhibit A as it may be amended from time to time as the owners of the Hotels.
“Owner” shall mean any entity described on Exhibit A as it may be amended from time to time. 
 “Parent” shall mean
Condor Hospitality Trust, Inc. 
 “Property” shall mean the Land, the Hotel, all real and personal property now or hereafter
situated upon the Land and all appurtenant rights and easements thereto. 
 “Renewal Term” shall have the meaning set forth in
Section 2.01. 
 “RevPAR” shall mean Hotel occupancy percentage multiplied by average daily rate. 

“RevPAR Benchmark” means the Hotel’s RevPAR Index for the trailing 12-months ending on the Commencement Date. 

“RevPAR Index” means the RevPAR Index included in the Smith Travel Research Report (“STR Report”). 

“STR Report” shall mean Smith Travel Research Report produced for the Hotel by Smith Travel Research or, if Smith Travel Research no
longer is in existence, the successor of Smith Travel Research or such other industry resource that is equally as reputable as Smith Travel Research will be substituted, in order to obtain substantially the same result as would be obtained if Smith
Travel Research has not ceased to be in existence. 
 “Unrelated Persons” shall have the meaning set forth in Section 21.09.

 Terms with initial capital letters which appear within the foregoing definitions are defined in this Article I or as indicated in this
Agreement. Dollars are denominated in U.S. Dollars. 

  
 8 

 ARTICLE 2 

TERM OF AGREEMENT 

Section 2.01. Term. 
 The
term of this Agreement shall commence on the Commencement Date and shall terminate at midnight on August 18, 2019 (the “Initial Term”), subject to earlier termination or extension as set forth herein. This Agreement shall
automatically renew for additional two (2) terms of one (1) year each (each, a “Renewal Term”) unless either party gives the other party written notice of termination at least ninety (90) days prior to the end of the Initial
Term or the then-current Renewal Term. 
 ARTICLE 3 

OPERATION OF THE HOTELS 

Section 3.01. Representations by Operator; Engagement of Operator. 

Operator hereby represents that Operator (i) is experienced and capable and will remain experienced and capable in the management and
operation of the hotel in the regions it manages hotels, (ii) has reviewed and understands the terms and provisions of the Lease and the Franchise Agreements and the Hotel Standards, and (iii) will, on the effective date of this Agreement,
meet the requirements to be an “eligible independent contractor” under Section 856(d)(9) of the Internal Revenue Code. In reliance on the foregoing representations, Lessee hereby engages Operator to manage and operate the Hotels
during the Operating Term and Operator agrees to manage and operate the Hotels during the Operating Term, in accordance with this Agreement. Operator will provide all property management, financial accounting, reporting, marketing and other
operational services for the Hotel, including the services of regional operations and regional sales support as necessary for the Hotel and will use commercially reasonable efforts to maximize the operating profitability thereof. Lessee and Operator
acknowledge that it is the intention of the parties that the Hotels be operated in a profitable manner and in a manner for comparable hotels operated by a national operator within the Hotel’s market segment, all in accordance with the Hotel
Standards. Operator shall diligently pursue all commercially reasonable measures to enable the Hotel to adhere to the Approved Budget. 

Section 3.02. Standards of Operation. 

Without limiting the generality of the foregoing, Operator’s engagement under this Agreement shall include the responsibility and
authority (subject to the limitations on Operator’s authority set forth in this Agreement), to do the following, at all times in material compliance with the Annual Plan, the Franchise Agreement, the Lease Agreement, Mortgage, if any, Legal
Requirements and the Operating Standard: 
 (a) Train, supervise, discharge and determine and pay the compensation, fringe benefits, 401(k)
retirement plans and other policies and terms of employment of all personnel as may be reasonably required to provide proper operation, supervision, and management of the Hotel in a professional manner suitable to the character of the Hotel; 

  
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 (b) Determine the terms for guest admittance to the Hotel and establish all prices, price
schedules, rates and rate schedules for rooms, and other amenities and services provided at or in connection with the Hotel; 
 (c) Develop,
revise, and implement all prudent policies and practices relating to all aspects of the Hotel, which shall be set forth in one or more policy manuals or other writings, and train and supervise all Hotel employees for compliance with all such
policies and practices, including policies and practices relating to: (i) terms and conditions of employment, applicant screening, background checks, selection, hiring, training, supervision, compensation, employee benefits, discipline,
dismissal, transfer and replacement; (ii) compliance with laws, including but not limited to anti-discrimination, sexual harassment and Environmental Laws; and (iii) safety procedures, including those relating to the handling of hazardous
and other dangerous materials; 
 (d) Select, purchase and install all Inventories and Operating Equipment and Supplies for the Hotel, and
to the extent set forth in the Approved Capital Budget, but subject to the requirement to obtain Owner’s specific authorization for expenditures in the Approved Capital Budget exceeding $25,000, or otherwise requested by Owner, FF&E and
other items on the Approved Capital Budget. Without limiting the generality of the foregoing, Operator agrees to maintain the levels of Inventories and Operating Supplies at standards consistent with past practice and the requirements of the
Operating Standard through the date of termination of this Agreement, including the period after a notice of termination of this Agreement has been given by Owner or Operator; 

(e) Negotiate and enter into service contracts on Owner’s behalf which are necessary or desirable in the ordinary course of business in
operating the Hotel, including, without limitation, contracts for provision of electricity, gas, water, telephone and other utility services, cleaning services, security services, vermin extermination, trash removal, elevator and boiler maintenance,
air conditioning maintenance, master television service, laundry and dry cleaning, entertainment satellite systems and other services necessary for operation of the Hotel in accordance with this Agreement. Unless Owner otherwise elects, all such
service contracts shall be entered into in Operator’s name; 
 (f) Establish all credit policies, and enter into agreements with credit
card companies, in connection with the Hotel; 
 (g) Apply for, and obtain and maintain in the name of Owner or Operator, as required by
Legal Requirements and this Agreement, all Permits required of Owner or Operator in connection with the management and operation of the Hotel; 

(h) Institute and defend in the name of Operator or Owner (or both), utilizing legal counsel selected by Owner, any and all legal actions or
proceedings (i) involving routine collection litigation and similar matters respecting ordinary day-to-day operations of the Hotel where the amount in controversy is less than $10,000; or (ii) which Owner shall deem necessary or proper in
connection with the operation of the Hotel and requests Operator to institute or defend; 

  
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 (i) Establish, supervise and implement a sales and marketing program for the Hotel consistent
with the Marketing Plan, and in conjunction therewith, plan, prepare, arrange and contract for all advertising, publicity and promotional activities for the Hotel, including advertising and promotional activities in conjunction with other hotels
owned, operated or franchised by Operator and its Affiliates, and all discount and complimentary policies with respect to bona fide travel agents, tourist officials, airline representatives, and employees of Owner, Lessor, Operator and their
Affiliates in accordance with the customary practices of the travel industry; 
 (j) Engage such persons, as have been approved by Owner (in
Owner’s sole discretion) for providing services of a specialist nature (such as legal counsel and independent accountants) related to matters within Operator’s responsibility under this Agreement; 

(k) Perform (or cause to be performed and supervised) such maintenance and repairs to the Hotel as shall be required to maintain the Hotel in
all material respects in accordance with the Operating Standard. Without limiting the generality of the foregoing Operator agrees to perform (or cause to be performed and supervised) all necessary or scheduled repair and maintenance through the date
of termination of this Agreement, including the period after a notice of termination of this Agreement has been given by Owner or Operator; 

(l) Perform any obligations of Owner under the Lease Agreement and any Mortgage which are applicable to the operation and management of the
Hotel, and upon request of Owner, pay, as and when due, all payments due under the Lease Agreement, any Mortgage or other loans relating to the Hotel; 

(m) Pay all Operating Expenses, including but not limited to Impositions and insurance premiums (whether for insurance maintained in
accordance with this Agreement by Owner, Lessor or Operator); 
 (n) Pay all gross receipts, transient occupancy and similar taxes; 

(o) Comply with all Legal Requirements and the requirements of insurance companies which are applicable to the operation and management of the
Hotel; 
 (p) Perform each and all of the obligations of Owner and Operator under the Franchise Agreement, communicate directly with
Franchisor and provide copies of all written communication between Operator and Franchisor to Owner; 
 (q) Operate and/or lease to third
parties selected by Owner gift and sundry shops, concessions, food and beverage, banquet and room service facilities of the Hotel, provided, that Owner shall seek Operator’s approval of any such lease, which approval which may be withheld only
if Operator can demonstrate that the third party operator is unable to manage the space or facility in a manner consistent with the Operating Standard; 

(r) Do any and all other acts and things as Operator may deem necessary and appropriate to carry out its responsibilities under this
Agreement; and 

  
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 (s) Comply with the provisions of any covenants, conditions and restrictions recorded against
the Hotel. 
 Section 3.03 Limitations on Operator’s Authority 

Operator shall have no authority to do any of the following without Owner’s prior written approval in each instance, which may be withheld in Owner’s
sole and absolute discretion: 
 (a) Borrow money, guaranty the debts of any third person, or mortgage, pledge, grant a security interest in
or otherwise encumber all or any part of the Hotel; 
 (b) Enter into any lease for the use of any item of FF&E or other property; 

(c) Enter into any agreement, lease, license or concession agreement for office, retail, lobby or other commercial space at the Hotel; 

(d) Incur any liabilities or obligations to third parties which are unrelated to the operation, maintenance and security of the Hotel or to
the performance of Operator’s responsibilities under this Agreement; 
 (e) Engage in collective bargaining with the bargaining
representative or representatives of Hotel employees, enter into collective bargaining agreements, or modify or renew existing Union Agreements, or approve across-the-board wage increases affecting any class of Hotel Employees; 

(f) Enter into any contract or other arrangement (or series of related contracts or arrangements) if (i) the contract or other
arrangement would, or are reasonably anticipated to, exceed $25,000 in the aggregate, (ii) the term of such contract or other arrangement is in excess of one year, or (iii) the contract or other arrangement is not terminable by Owner or
Operator without payment or penalty upon not less than thirty (30) days notice, or (iv) if the contract is for the employment of any member of the Executive Staff or other Hotel Employee; 

(g) Settle any casualty and insurance claims which involve, or which are reasonably estimated to involve, amounts in excess of $10,000, and
any condemnation awards regardless of amount; 
 (h) Institute or defend any Legal Proceedings with respect to the Hotel, other than as
required by Section 2.2 (h); 
 (i) Employ any professional firm for more than $10,000 in the aggregate except as set forth in
the Annual Plan, or enter into any arrangement for the employment of any attorney or accountant; 
 (j) Prosecute or settle any tax claims
or appeals; 
 (k) Purchase goods, supplies and services from itself or any Affiliate of Operator, or enter into any other transaction with
an Affiliate of Operator, unless (i) such purchase from or other transaction with Operator or any Affiliate of Operator is disclosed in the 

  
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Annual Plan or (ii) prior to the consummation of such transaction all of the prices and other terms thereof and the identity of the vendor and its relationship to Operator shall have been
disclosed to and approved by Owner, which may be withheld in Owner’s sole discretion. Owner may require that the supplier of any goods, supplies or services for the Hotel be selected through competitive bidding by qualified independent third
parties, with the transaction being awarded to the lowest bidder. Except to the extent disclosed to Owner in advance and approved by Owner in its sole and absolute discretion, neither Operator nor any Affiliate of Operator shall charge or receive
any mark-up, profit or purchasing fee on the purchase by or for the Hotel of any goods, supplies or services. Operator shall ensure that the prices and terms of goods and services purchased under such contracts are competitive with the prices and
terms of goods and services of equal quality available from others. Operator shall use its best efforts to obtain the maximum available discounts and rebates on purchases and the most favorable terms available. Any allowances, credits, rebates,
discounts and the like received with respect to any such purchases shall be for the account of Owner, and if received by Operator or any of its Affiliates, shall be turned over to Owner; 

(l) Provide complimentary rooms or services to any guests, employees or other persons except in accordance with Operator’s policies
approved by Owner or for which the business purpose for the benefit of the Hotel is properly documented; 
 (m) Acquire on behalf of Owner
any land or any interest therein; 
 (n) Consent to any condemnation or participate in any condemnation proceeding relating to the Hotel,
the Site or any portion thereof; 
 (o) Sell, transfer or otherwise dispose of all or any portion of the Hotel or any capital assets of the
Hotel or other interest therein, except for dispositions of FF&E to the extent expressly provided for in the Annual Plan; 
 (p) Perform
any alterations to the Hotel or any portion thereof except to the extent Operator’s performance of any such alteration shall be expressly provided for in the Annual Plan; 

(q) Take any other action which, under the terms of this Agreement, is prohibited or requires the approval of Owner; 

(r) Lease or rent any one or more of the Hotel’s ballroom, bar or restaurant for periods in excess of two (2) consecutive weeks; and

 (s) Do or take any other action that shall be contrary to any directions of Owner or limitations on Operator’s authority imposed by
Owner pursuant to any other provision of this Agreement. 
 Section 3.04. Reservations Services and Revenue Management. 

Operator shall use, among other things, the respective Franchisors’ sales and reservations systems and will encourage the use of the
Hotel by all recognized sources of hotel business. Operator must employ, at the Hotel’s expense, at least one employee responsible for revenue management of the Hotel, with certification by a governing body reasonably acceptable to Lessee or
use Franchisor’s Regional Manager services, which costs will be paid by the Hotel, through the approved operating budget. 

  
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 Section 3.05. Marketing. 

(a) Operator shall maintain a sales staff dedicated to the Hotels to arrange, contract for and carry out such marketing, advertising,
national trade show attendance, and promotion of the Hotel as Operator shall deem advisable and consistent with the Approved Budget and in accordance with the Hotel Standards. Operator will use reasonable effort to ensure that the Hotel shall
receive an equitable share of the benefit of the cooperative advertising and promotion reasonably commensurate with its contribution to the costs thereof. The costs thereof shall be equitably allocated by Operator between the Hotel and other
participating hotels. Upon Lessee’s request, Operator shall provide reasonable documentation to support such allocations. Operator shall provide Lessee with detailed monthly reports of its marketing, advertising and promotional activities
through standard monthly reporting. Each property shall be visited at least once every three (3) months by a member of Operator’s sales leadership team if in approved budget. 

(b) Operator may, consistent with the Approved Budget, and otherwise, with the consent of Lessee, cause the Hotel to participate in sales and
promotional campaigns and activities involving complimentary rooms, food and beverages, consistent with customary practices in the travel industry. Operator shall not provide rooms or Hotel facilities at no cash charge or at a discounted cash rate
in trade for non-cash consideration or services without the consent of Lessee. 
 Section 3.06. Consultations Between Lessee and Operator. 

When requested by Lessee, Operator shall, from time to time, render advice and assistance to Lessee and Owner in the negotiation and
prosecution of all claims for the reduction of real estate or other taxes or assessments affecting the Hotel and for any award for taking by condemnation or eminent domain affecting the Hotel. 

Section 3.07. Transactions with Affiliates and Other Relationships. 

(a) Operator shall obtain the prior written consent of Lessee (which Lessee may withhold in Lessee’s sole and absolute discretion) prior
to contracting with any Affiliate (or companies in which Operator has an ownership or other economic interest if such interest is not sufficient to make such a company an Affiliate) to provide goods and/or services to the Hotel. 

(b) Prior to entering into any contract, agreement or arrangement with respect to one or more of the Hotels pursuant to which Operator may
receive rebates, credit card rebates, cash incentives, administration fees, concessions, profit participations, stock or stock options, investment rights or similar payments or economic consideration from or in, as applicable, vendors or suppliers
of goods or services (collectively, “Rebates”), Operator shall promptly disclose to Lessee in writing the fact of and the estimated amount of such Rebates, and the charges and other amounts expected to be incurred in connection with any
such contracts or agreements (which shall not exceed prevailing market rates with respect to such goods or services). All Rebates associated with the Hotel will accrue to the benefit of Lessee and will be applied against Operating Expenses. 

  
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 Section 3.08. Regional Manager. 

Operator shall provide the services of one of its experienced management employees to oversee and manage the operations of the Hotels (the
“Regional Manager”). Lessee shall have the right to approve the Regional Manager and any successor provided that such approval shall not be unreasonably withheld. The Regional Manager shall meet telephonically with the designated
representatives of Lessee at least monthly to discuss operations at the Hotels and consult with Lessee to answer any questions Lessee may have, and to address any concerns of Lessee. Lessee’s representatives shall have the right to meet with
the COO of Operator or his/her mutually acceptable alternative on a semi-annual basis to review hotel performance. 
 Section 3.09. Certain Expenses.

 Operator shall not be entitled to charge Lessee for any of its costs and expenses, except as follows: 

(a) Operator shall not charge tuition for training courses provided by Operator for employees employed at the Hotels or for course materials
but shall be reimbursed the cost of course materials developed by third party companies, subject to approval in the Operating Budget. Reasonable travel and housing expenses of trainees shall be included in Operating Expenses, subject to approval in
the Operating Budget. 
 (b) Travel expenses described in (xvi) of “Operating Expenses” above. 

Operator shall be solely responsible and shall reimburse Lessee and Owner for re-inspection and/or penalty fees charged by Franchisors
following a “failure” or its equivalent in any quality inspection report or brand required score standards unless the failure is for a Capital Improvement that has been previously brought to the attention of the Owner or Lessee and Owner
or Lessee has not corrected at the time of the inspection or if the Operator has met the required brand guest service scores in which case the penalty fees will be paid by Lessee. This provision excludes failures solely driven by budgetary
constraints allowing Hotel to operate to current brand standards as required by Franchisor and agreed to by Owner. 
 ARTICLE 4 

INDEPENDENT CONTRACTOR 

Section 4.01. Operator Status. 

In the performance of its duties in the administration, management and operation of the Hotel, Operator shall act solely as an independent
contractor. Nothing herein shall constitute or be construed to be or create a partnership or joint venture between Lessee and Operator, or be construed to appoint or constitute Operator as an agent of Owner for any purpose, or be construed to create
a lease by Operator of the Hotel or the Property and Operator shall not constitute a tenant or subtenant of Lessee or Owner. Operator’s rights under this Agreement shall 

  
 15 

 
be those of an agent only and shall not constitute an interest in real property. Lessee or Owner shall have the right to lease, develop or sell excess land or structures not required for
operation of the Hotel including the land related to the Seller’s parking lot option. It is expressly covenanted that this Agreement is no more than an agreement for the rendering of services by Operator on behalf of Lessee in the operation and
management of the Hotels. 
 Section 4.02. Employees. 

Operator agrees that Lessee will have the right to review, interview, approve, or override, the hiring of Hotel General Manager and, Director
of Sales. Operator will use all methods at their disposal to find qualified candidates for the above listed positions. If Operator presents three (3) qualified applicants, one of the three must be approved by Lessee. Operator agrees that if
termination of either General Manager or Director of Sales occurs, Operator will put temporary or task force help in those vacated positions to insure continued smooth running operations of Hotel. 

(a) Each Hotel employee shall be the employee of Operator, or an affiliate company of Operator, and not of Lessee, and every person
performing services in connection with this Agreement shall be acting as the employee of Operator, but their salaries and other related expenses shall be an Operating Expense. 

(b) Operator shall provide evidence to Lessee of statutory Worker’s Compensation Insurance and Employer’s Liability Insurance for
each such employee. The insurance coverages (including, without limitation, the carrier, policy limits of each and waiver of subrogation endorsements) must be in form, substance and amount satisfactory to Lessee in all respects. Upon request of
Lessee, Operator will deliver to Lessee waiver of subrogation endorsements in favor of Lessee and Owner. 
 (c) The hiring policies and the
discharge of employees at the Hotel shall in all respects comply with all applicable laws and regulations, and Operator shall comply with all laws, regulations and ordinances regarding the employment and payment of persons engaged in the operation
of each Hotel. 
 (d) Lessee shall have the right to participate in any negotiations with labor unions representing employees at the Hotel,
and Operator shall not sign any union contracts or card check neutrality agreements covering such employees at the Hotel which have not been previously approved in writing by Lessee. 

Section 4.03. Employee Expenses. 

(a) All costs of every nature and reasonably available pertaining to all employees at the Hotel, including, without limitation, salaries,
benefits, EPLI coverage, the terms of any bonus plan or arrangement, costs incurred in connection with governmental laws and regulations and insurance rules, shall be set forth in the Approved Budget as an Operating Expense. 

(b) Compensation, overhead costs and other expenses of Operator and its Affiliates not specifically provided for herein shall not be
Operating Expenses and shall not be 

  
 16 

 
payable or reimbursable by Lessee; provided, however, Operator may include in the calculation of Operating Expenses the salary of any of Operator’s employees which have been temporarily
transferred to a Hotel to serve that Hotel exclusively; provided, further, that Operator may only include in Operating Expenses that portion of that employee’s salary which is not to exceed 10% of the normal rate charged for that employment
position. Operator may also include in the calculation of Operating Expenses reasonable travel costs associated with Operator’s employees located at the Operator’s corporate headquarters which have been temporarily transferred to a Hotel
to serve that Hotel exclusively. Lessee shall have the right to approve temporary travel schedule. 
 Section 4.04. Employee Benefit
Plans. 
 Operator shall enroll employees at the Hotels in medical and health, life insurance and employee benefit plans which are approved
by Lessee. Operator’s contributions to such plans, reasonable administrative fees, at cost, which may be expended in connection therewith, and reasonable expenses for such plans will be estimated and disclosed to Lessee in advance and provided
for in the Approved Budget and will be an Operating Expense. Except for employer matching contributions under any 401(k) plan, Lessee, in its sole discretion shall determine whether to require employees at the Hotels to pay all or a portion of the
costs of the employees’ participation in such plans. Except as otherwise provided in Section 6.03, all costs referenced in Section 4.03 and this Section 4.04 will be the responsibility of Lessee only to the extent the same are
provided for in the Approved Budget. Upon Lessee’s request, Operator will establish a 401(k) plan as an employee benefit plan. All costs incurred by Operator pursuant to actions taken by Operator at Lessee’s direction will be Operating
Expenses. 
 Section 4.05. Execution of Agreements. 

(a) Except as provided in Section 4.05(b), Operator shall execute as agent of Lessee leases and other agreements relating to equipment
and/or services provided to each Hotel, all of which, unless otherwise approved in writing in advance by Lessee, shall either be a term of one year or less or be cancelable upon not more than thirty (30) days’ written notice by Operator or
Lessee without the payment of a penalty or fee. Notwithstanding the foregoing, without the prior written approval of Lessee, Operator shall not enter into any agreement (i) which provides for the payment of sums not authorized by Lessee in an
Approved Budget, (ii) which would give rise to a lien upon all or any part of the Property, (iii) which would result in liability to Lessee for sums other than as set forth in the applicable Approved Budget, (iv) to lease any part of
any Property, (v) relating to alterations to the exterior, interior or structural design of the Hotel, (vi) which requires an unbudgeted payment of more than $25,000, or in the case of a repair of any payment of more than $25,000
(vii) which is not cancelable by Lessee upon 30 days’ notice or less unless the term of said agreement is one year or less, or (viii) which provides for any automatic renewal terms greater than thirty (30) days. Contracts for
multiple rooms and / or multiple days that (i) exceed a 1-year term and / or (ii) exceed 40% of the hotel’s room inventory for a period of 14 days or more, or (iii) exceed 50 room nights and have a negotiated net rate of $40 or
less for economy properties, and $55 or less for midscale and above, this includes promoting such rates online, in print ads such as coupons. If Operator desires to enter into any agreements requiring the consent of Lessee, Operator shall first send
written notice of intent to enter into such agreement to Lessee, and Lessee shall either approve or disapprove within five (5) business days of receipt of such notice. Lessee’s failure to timely respond to said request shall be deemed
approval. 

  
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 (b) Subject to Lessee’s prior approval of the same and upon Lessee’s request, Operator
shall execute, as agent for Lessee, (i) all leases, as sub-lessor, of any space at any Property, and (ii) equipment rental and/or lease agreements which cannot be terminated upon thirty (30) days notice or less without the payment of
a penalty or fee. Operator shall exercise its best efforts to obtain in each equipment agreement a right on the part of the lessee of such equipment to terminate the same on thirty (30) days notice or less without the payment of a penalty fee.
Notwithstanding anything in this Section 4.05 to the contrary, Lessee reserves the right, exercisable at Lessee’s option, to execute any lease or other agreement relating to equipment and/or services being provided to the Hotel. 

ARTICLE 5 
 INDEMNIFICATION

 Section 5.01. Indemnification by Operator. 

Operator shall indemnify and hold Lessee harmless against all claims, demands, actions, liabilities, losses, damages, lawsuits and other
proceedings at law or in equity, judgments, awards, commissions, fees, costs and expenses (including, without limitation, attorneys’ fees and expenses), of every kind and nature whatsoever to or of any party connected with, or arising out of,
or by reason of any gross negligent act or omission, breach of contract, willful misconduct, or tortious actions by Operator, or any Affiliate of Operator, or any officer, employee, agent, contractor, subcontractor, or other person or entity working
for Operator or any Affiliate of Operator and any employment related claims by Operator’s employees. The indemnification provisions of this Section 5.01 are subject to the limitations set forth in Section 5.02. 

Section 5.02. Limitations on Indemnification. 

None of the indemnifications set forth in Section 5.01 shall be applicable to (1) liability resulting from the design or
construction of the Hotel, or (2) that portion of a liability which is covered and paid for by insurance maintained for the Hotel. The standard of performance of which Operator is to be responsible under this Agreement shall be that, reasonably
and diligently exercised, of a professional hotel operator. Settlement of a third party claim shall not be prima facie evidence that a party has triggered an indemnification obligation hereunder. Notwithstanding the provisions of Section 5.01
above, neither Lessee nor Operator will assert against the other and each does hereby waive with respect to the other any claims for any losses, damages, liabilities and expenses (including lawyers’ fees and disbursements) incurred or sustained
by that party as a result or damage or injury to persons or property arising out of the ownership, operation or management of the Hotels, to the extent that the damage and injury are covered by insurance and the proceeds are actually recovered from
the insurer. 
 Section 5.03. Indemnification by Lessee. 

Lessee shall indemnify and hold Operator harmless against all claims, demands, actions, liabilities, losses, damages, lawsuits and other
proceedings at law or in equity, judgments, 

  
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awards, commissions, fees, costs and expenses (including, without limitation, attorneys’ fees and expenses), of every kind and nature whatsoever to or of any party connected with or arising
out of, or by reason of any gross negligent act or omission, breach of contract, willful misconduct, or tortious actions by Lessee or any Affiliate of Lessee, or any officer, employee, agent, contractor, subcontractor, or other person or entity
working for Lessee or any Affiliate of Lessee. The indemnification provisions of this Section 5.03 are subject to the limitations set forth in Section 5.02. Lessee will indemnify and hold Operator harmless from all costs, expenses, claims,
damages and liabilities, including without limitation, lawyers’ fees and disbursements, arising or resulting from Lessee’s failure following the expiration or earlier termination (for whatever cause) of this Agreement to provide all of the
services contracted for in connection with the business booked on commercially reasonable terms for the Hotels on or prior to the date of such expiration or termination. The provisions of this Section will survive any expiration or termination of
this Agreement and will be binding upon Lessee and its successors and assigns, including any successor or assign that becomes the beneficial or legal owner of the Hotels after the effective date of any such expiration or termination. 

Section 5.04. Survival of Indemnity. 

The provisions of this Article V shall survive the expiration or sooner termination of this Agreement with respect to matters arising out of
facts or circumstances occurring during the period prior to such expiration or termination. 
 ARTICLE 6 

BUDGETS AND POLICY MEETINGS 

Section 6.01. Budgets. 

(a) No later than October 1 of each year, excluding the first year, which will be due November 15, Operator will prepare and submit
(following discussions with Lessee) to Lessee an annual capital budget for each Fiscal Year for each Hotel (the “Hotel Capital Budget”). Notwithstanding the foregoing, for the Fiscal Year in which this Agreement is executed Operator shall
manage the Hotels in accordance with the then existing Hotel Capital Budget, which is subject to force majeure. The Hotel Capital Budget will set forth all projected Capital Improvements for such Fiscal Year, which budget shall also be
month-to-month as well as annual. The Hotel Capital Budget will be subject to the approval of Lessee and Owner, in their sole and absolute discretion. No later than October 1 of each year, Operator shall prepare and submit (following
discussions with Lessee) to Lessee an annual operating budget and business plan for the operation of each Hotel for the forthcoming Fiscal Year containing detailed projections of Gross Hotel Income and budgets of Operating Expenses (the “Hotel
Operating Budget”). Notwithstanding the foregoing, for the Fiscal Year in which this Agreement is executed Operator shall manage the Hotels in accordance with the then existing Hotel Operating Budget. The Hotel Operating Budget shall be
month-to-month as well as annual and shall be in the form designated by Lessee, and approved by Operator, which approval of the form shall not be unreasonably withheld. The Hotel Operating Budget and the Hotel Capital Budget shall provide for
operating, equipping and maintaining the Hotel in accordance with the Hotel Standards. Contemporaneously with the submission of the Hotel Capital Budget, Operator shall 

  
 19 

 
submit to Lessee monthly budgeted occupancy, average daily rate and RevPAR statistics for each hotel. The Hotel Operating Budget and the monthly budgeted hotel operating statistics shall contain
Operator’s reasonable good faith estimates of the amounts set forth therein. Operator shall provide Lessee, upon request, all details, information and assumptions used in preparing the Hotel Capital Budget and the Hotel Operating Budget. Owner
shall be responsible for implementing the Hotel Capital Budget and may, in Owner’s sole discretion, increase, decrease, delete or modify in any respect any capital expenditure in any Hotel Capital Budget. 

(b) Operator shall review the Hotel Capital Budget and the Hotel Operating Budget with Lessee, and upon Lessee’s written approval of the
Budget, it shall constitute the Approved Budget for the succeeding Fiscal Year and shall be implemented by Operator. In the event Lessee does not provide Operator with written objections to the Hotel Capital Budget and Hotel Operating Budget within
30 days following Lessee’s receipt of the same, they shall be deemed approved. If Lessee objects to any portion of the Hotel Capital Budget or the Hotel Operating Budget within 30 days after receipt of the same, or to any portion of the
revisions within 20 days after submission of the revisions by Operator to Lessee, the parties hereto will call a special budget meeting to resolve the points of disagreement. In the event that Lessee and Operator are unable to agree on the Hotel
Operating Budget for a Hotel prior to the commencement of the applicable Fiscal Year, an interim operating budget shall be implemented which will reflect CPI increases for expenses and RevPAR increases based on the appropriate previous 12-month
RevPAR growth percentage for the sector in which the Hotel is included, as published by Smith Travel Research, for revenue growth over the prior year’s actual amounts, including automatic increases of any necessary expenses such as Real Estate
Tax, franchise fees or insurance. 
 Section 6.02. Budget Meetings. 

Budget meetings between Lessee and Operator will be held at times as reasonably scheduled by Lessee. At each budget meeting and at any
additional meetings during a Fiscal Year called by Lessee, Operator shall consult with Lessee on matters of policy concerning management, sales, room rates, wage scales, personnel, general overall operating procedures, economics and operation and
any other matters affecting the operation of the Hotel as requested by Lessee. 
 ARTICLE 7 

OPERATING EXPENSES 

Section 7.01. Payment of Operating Expenses. 

(a) In performing its authorized duties hereunder, Operator shall promptly pay all Operating Expenses, except that if requested by Lessee
certain Operating Expenses shall be paid by Operator directly to Lessee for payment by Lessee to the appropriate lender, taxing authority, insurer or other party so identified by Lessee to Operator. 

(b) Subject to Article V, all reasonable third party Operating Expenses incurred by Operator in performing its authorized duties shall be
reimbursed or borne by Lessee; provided that such Operating Expenses are incurred pursuant to and within the limits set forth in an Approved Budget or otherwise pursuant to the terms of this Agreement. 

  
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 (c) Notwithstanding anything to the contrary contained herein, (i) the Administrative
Member is authorized to spend up to an additional ten (10%) percent for any budgeted line item in an Approved Budget for a period not exceeding in the aggregate five percent (5%) of the total Approved Budget, (ii) if there is an
increase in revenue over the budgeted line items for revenue in the Approved Budget, the budgeted line items in the Approved Budget for discretionary expenses shall be increased by a corresponding and proportional amount, and (iii) if there is
a decrease in revenue under the budgeted line items for revenue in the Approved Budget, the budgeted line items in the Approved Budget for discretionary expenses shall be decreased by a corresponding and proportional amount. 

Section 7.02. Operating Expenses Not an Obligation of Operator. 

Except as may be otherwise specifically provided in this Agreement, Operator shall in no event be required to advance any of its own funds for
Operating Expenses of the Hotel, nor to incur any liability in connection therewith unless Lessee shall have furnished Operator with funds as required of Lessee under the terms of this Agreement. However, if Lessee has provided funds required of
Lessee hereunder, Operator shall advance such funds necessary to pay expenses incurred by Operator in performing its duties and obligations hereunder. Unless agreed to by Lessee in this Agreement, in the Hotel Operating Budget or otherwise in
writing in advance, compensation, overhead costs, and other expenses of Operator and its Affiliates shall not be reimbursable to Operator by Lessee. 

ARTICLE 8 
 BANK ACCOUNTS

 Section 8.01. Lessee Revenue Account. 

All income, receipts, and proceeds included in the definition of Gross Hotel Income shall be deposited into Lessee Revenue Account. 

Section 8.02. Operating Account 
 Manager
shall establish and maintain one or more separate segregated operating accounts (collectively, the “Operating Account”) at a FDIC insured bank designated by Manager (except to the extent any Lender requires that the Operating
Account be held with Lender as part of a cash management system) for the collection and disbursement of monies in connection with the management and operation of the Hotel. All Gross Revenue and other funds (exclusive of funds deposited in the
Reserve Fund or the Emergency Fund) received by Manager in the operation of the Hotel or otherwise relating to the Property, and funds for the Working Capital Amount provided by Owner or retained by Manager from Gross Revenue, shall be deposited in
the Operating Account. From the Operating Account, Manager shall pay all Operating Expenses, and other costs and expenses relating to the operation of the Hotel as permitted or required to be paid by Manager in accordance with this Agreement
before any penalty or interest accrues thereon. The Operating Account shall be a segregated account and at all times shall be in 

  
 21 

 
Owner’s name; provided that Hotel Employees and Home Office Employees designated by Manager from time to time which shall be bonded or otherwise insured shall be authorized signatories of
such account, as shall be representatives of Owner. All interest earned or accrued on amounts invested from the Operating Account shall be added to the Operating Account. 

Section 8.03. Ownership of Accounts 
 Owner
shall furnish information necessary for the printing of all Operating Account checks, which will bear the name of the Hotel. All bank accounts (including the Operating Account but excluding the Reserve Fund), bank balances, bank statements,
advice, paid checks, blank checks and other related records established in connection with operation of the Hotel or the ownership of the Property shall be the sole property of Owner and/or any designee of Owner. 

Section 8.04. Distributions to Owner 

Along with the monthly financial information delivered, Manager shall remit to Owner out of the Operating Account an amount (the
“Distribution Amount”) by which the total amount of free and clear funds in the Operating Account as of the end of the preceding calendar month exceeds the sum of (i) the Working Capital Amount, (ii) the current accrued
and unpaid Operating Expenses, Fixed Charges and Owner’s Expense (iii) any current accrued and unpaid contributions to the Reserve Fund and the Emergency Fund, and (iv) such additional amounts of working capital as are determined
necessary by Manager and approved by Owner, which approval may be granted or withheld in Owner’s discretion exercised in a commercially reasonable manner (such sum being referred to herein as the “Mandatory
Balance”). Manager shall not be obligated to disburse the Distribution Amount until such date as the Operating Account contains in the aggregate more than the Mandatory Balance and each succeeding disbursement to Owner of the
Distribution Amount shall not occur until such date as the sums contained in the Operating Account again exceed the Mandatory Balance. Each distribution shall be paid (by check, wire transfer or such other method designated by Owner) to Owner
at Owner’s address then in effect hereunder for receipt of notices hereunder by Owner or at such other place as Owner may designate in writing to Manager. In the event that Manager distributes more or less than is required in any month,
Manager shall correct such over or under payment by adjusting the Distribution Amount for the following month or months, as necessary, and shall notify Owner in writing of any such adjustment. Notwithstanding the foregoing, in the event that
any Lender requires a cash management system that is inconsistent with the prevailing cash management agreement, the cash management system required by such Lender shall control, and Manager shall comply in all respects with the cash management
system required by such Lender. Any deficits in or negative cash flow at any time or times in any Contract Year shall be borne exclusively by Owner. 

Section 8.05. Exculpation of Manager 
 All
expenses incurred by Manager in performing its obligations under this Agreement shall be borne by Owner and, to the extent funds are available, paid out of the Operating Account by Manager. All debts and liabilities to third parties which
Manager incurs as Manager under this Agreement, whether incurred in the name of Owner, Manager or the name of the Hotel or any variation of such name used as a trade name, are and shall be the obligations of Owner, and

  
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Manager shall not be liable for any such obligations by reason of its management, supervision and operation of the Hotel. In the event that funds are not available in the Operating Account
to pay any such expenses, debts or liabilities, Owner shall promptly upon request from Manager, deposit funds in the Operating Account sufficient to pay such expense, debts or liabilities. 

Section 8.06. Reimbursement of Manager 

Manager shall be reimbursed for all Out-of-Pocket Expenses and Travel Expenses incurred in rendering services to the Hotel or Owner to the
extent such Out-of-Pocket Expenses and Travel Expenses are provided for in the Annual Budget, required or permitted by this Agreement or otherwise approved by Owner, which approval shall not be unreasonably withheld, conditioned or
delayed. Nothing in this Agreement, however, shall require Manager to advance or otherwise expend any of its own funds in connection with the operation of the Hotel or ownership of the Property. If Manager pays any amount for which Owner
is responsible under this Agreement, Manager shall be entitled to reimbursement thereof by Owner. Manager may pay to itself the Out- of-Pocket Expenses and Travel Expenses or other reimbursements from the Operating Account, with Owner’s
approval. The Out-of-Pocket Expenses and Travel Expenses shall be payable to Manager monthly, in arrears. Manager shall also be reimbursed for all reasonable costs and expenses incurred in taking over management of the Hotel in accordance with
the pre-opening budget, such reimbursement to be paid within fifteen (15) days after Manager delivers and invoice therefore. 
 Section 8.07.
Reserve Fund 
 Manager shall, at the discretion of Owner, establish and maintain an interest-bearing reserve account (in either case, the
“Reserve Fund”), in the name of Manager, for the purpose of funding routine Capital Expenditures and the replacement of and additions to FF&E on an annual basis in accordance with the Franchise Agreement and the Mortgage (for
avoidance of doubt, there shall be only one Reserve Fund, and such Reserve Fund shall be subject to the Franchise Agreement and the Mortgage). All interest earned or accrued on amounts invested from the Reserve Fund shall be added to the
Reserve Fund (but shall not be credited against Owner’s obligations to fund the Reserve Fund. Home Office Employees designated by Manager from time to time, who shall be bonded or otherwise insured, shall be authorized signatories of such
account, together with representatives of Owner, who shall also be authorized signatories of such account. The amount deposited in the Reserve Fund in each Contract Year shall be specified in the Annual Budget; provided, however, that unless
Manager and Owner otherwise agree, or unless a greater amount is required by the Lender, the amount of deposits to the Reserve Fund shall be four percent (4%) of the total Gross Revenue derived from the operation of the Hotel during each
subsequent twelve month period beginning with the management Commencement Date and continuing to the next anniversary thereof (“Replacement Reserves”). Manager shall comply with any requirements imposed by any Lender relating
to the Reserve Fund. 
 Section 8.08. Working Capital Funds 

Owner further agrees to provide funds to Manager sufficient to maintain a cash balance in the Operating Account equal to or greater than the
Working Capital Amount, which amount shall be used by Manager solely in connection with operation of the Hotel and performance of the 

  
 23 

 
responsibilities of Manager under this Agreement. If Manager notifies Owner that funds in the Operating Account are less than the Working Capital Amount, Owner shall promptly, but in no
event later than five (5) Business Days after receipt of such notice from Manager, provide sufficient funds to bring the balance of the Operating Account up to the Working Capital Amount. 

ARTICLE 9 
 BOOKS, RECORDS
AND STATEMENTS 
 Section 9.01. Books and Records. 

(a) Operator shall keep full and adequate books of account and other records reflecting the results of operation of the Hotel on an accrual
basis, all in accordance with GAAP. 
 (b) Except for the books and records which may be kept in Operator’s home office or other
location approved by Lessee the books of account and all other records relating to or reflecting the operation of the Hotel shall be kept at the Hotel. All such books and records pertaining to the Hotel, including, without limitation, books of
account, guest records and front office records, at all times shall be the property of Lessee and, except for books of account, accounts payable invoices, night audit packages, deposit records and similar documents which may be sent to
Operator’s accounting department shall not be removed from any Hotel by Operator without Lessee’s written approval and consent. All books and records pertaining to the Hotel and of Operator (including all budgetary records of Operator),
wherever kept, shall be available to Lessee and its representatives at all reasonable times for examination, audit, inspection, transcription and copying. Operator shall not remove, destroy or delete any books and records of the Hotels without the
prior written consent of Lessee. Upon any termination of this Agreement, all of such books and records pertaining to the Hotel forthwith shall be turned over to Lessee so as to insure the orderly continuance of the operation of the Hotel, but such
books and records shall be available to Operator for a period of five (5) years at all reasonable times for inspection, audit, examination, and transcription of particulars relating to the period in which Operator managed the Hotel. 

Section 9.02. Statements. 

(a) Operator shall deliver to Lessee by the twelfth (12th) business day following
the last day of each month, for each Hotel, a monthly report of the state of the business and affairs of the operation of the Hotel for the immediately preceding month and for the Fiscal Year to date and within ten (10) days after the end of
each quarter, a quarterly report with respect to the preceding quarter. Such reports shall include at least (i) a balance sheet account reconciliation including all intercompany accounts, (ii) a profit and loss statement, comparing current
month and Fiscal Year-to-date profit, loss, and operating expenses to the Approved Budget and the prior year and comparing current month, quarter and Fiscal Year-to-date average daily rate, occupancy and RevPAR to the Approved Budget and the prior
year, (iii) a statement which details the computation of all fees payable to Operator for the month and quarter, (iv) the balance of all bank accounts, and (v) an adjusting statement showing the actual cash position of the Hotel for
the month, quarter and Fiscal Year-to-date. Additionally, Operator shall deliver to 

  
 24 

 
Lessee fifteen (15) days following the end of each month and fifteen (15) days following the end of each quarter a written narrative discussing any of the aforementioned reports and
year-to-date variances from the Approved Budget, without thereby implying Lessee’s approval of such variance. 
 (b) Such reports and
statements (i) shall be in form and in detail satisfactory to Lessee as reasonably requested by Lessee and consistent with standard hotel reporting procedures, (ii) shall be taken from the books and records maintained by Operator in the
manner hereinabove specified, and (iii) if requested by Lessee, shall be in electronic form. 
 (c) Within sixty (60) days after
the end of each Fiscal Year, Operator shall deliver to Lessee reviewed financial statements for Operator, and, if requested by Lessee, within thirty (30) days after the end of each quarter of each Fiscal Year, Operator shall deliver to Lessee
unaudited financial statements for Operator. 
 (d) In addition, Operator shall timely deliver to Lessee a copy of (i) a monthly STAR
report from Smith Travel Research for each Hotel, where available (which Operator hereby agrees to order with respect to each Hotel and provide to Lessee), (ii) each Guest Satisfaction report, (iii) upon receipt, each Franchisor inspection
report, and (iv) such other reports or information in such form as may be reasonably requested by Lessee. Any out-of-pocket costs incurred by Operator to generate such reports will be included in Operating Expenses 

(e) Operator agrees to annually have accounting and operations practices reviewed by a certified person or entity in order to provide Lessee
with verification of a Type 2 SOC 1 Report, Report on Controls at a Service Organization Relevant to User Entities’ Internal Control over Financial Reporting. This report is to be prepared under Statement on Standards for Attest
Engagements 16 (SSAE 16) as promulgated by the AICPA. If the standards of the AICPA change, the operator agrees to comply with revisions of these standards. 

(f) Operator shall use the accounting software and payroll processor specified in Exhibit A-2. 

ARTICLE 10 

OPERATOR’S FEE AND TRANSFERS TO LESSEE 

Section 10.01. Payment of Operator’s Fee. 

Within three (3) business days after the delivery to Lessee of the monthly report required by Section 9.02, Operator shall be paid
the Operator’s Fee by Lessee for the immediately prior month, based upon Gross Hotel Income for the immediately prior month, as determined from the books and records referred to in Article IX. 

  
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 ARTICLE 11 

REPAIRS AND MAINTENANCE 
 Subject
to the provisions of the Approved Budget, Operator shall from time to time make such expenditures for repairs and maintenance as are necessary to keep the Hotel in good operating condition in accordance with the Hotel Standards. If any repairs or
maintenance shall be made necessary by any condition against the occurrence of which Operator, Lessee or Owner has received the guaranty or warranty of any contractor for the building of the Hotel or of any supplier of labor or materials for the
construction of the Hotel, then Operator shall, on Lessee’s or Owner’s request, cooperate with Lessee and Owner in invoking such guarantees or warranties. Notwithstanding the Approved Budget, Owner or Lessee may from time to time at its
expense make such alterations, additions, or improvements (including structural changes or repairs) in or to the Hotel as they deem desirable, in their sole discretion and responsibility, for the efficient operation of the Hotels. 

ARTICLE 12 
 INSURANCE 

Section 12.01. General. 

Owner and Lessee shall maintain insurance policies with respect to the Hotels as set forth below. Operator agrees to cooperate with Lessee and
Owner in obtaining any such insurance. Operator further agrees to provide Lessee with detailed summaries of their Worker’s Compensation, Auto Liability, Cyber and Employment Practices Liability insurance policies and endorsements upon renewal.

 Section 12.02. Workers’ Compensation and Other Employment Insurance. 

Operator shall obtain, and the Hotel Operating Budget shall include, as an Operating Expense, Workers’ Compensation, in compliance with
state law in the state of operation of each Hotel, including Employers’ Liability with minimum limits of $1,000,000 each accident. Such policy shall include an Alternate Employer Endorsement naming Owner and Lessee, and shall provide for a
Waiver of Subrogation in favor of Owner and Lessee. 
 Section 12.03. Approval of Companies and Cost by Owner and Lessee. 

All insurance shall be with such insurance company or companies as may be selected by Owner or Lessee. Lessee will obtain all insurance but,
upon the request of Lessee not less than one hundred twenty (120) days prior to the coverage date, Operator will obtain such insurance, subject to Lessee’s approval of the insurance companies and coverages. Comprehensive general liability
insurance and such other liability insurance as may be obtained or afforded shall be in the name of Owner and Lessee, and shall name Operator as an additional named insured as respects liability arising from the operation, maintenance and use of the
Hotel and operations incidental thereto. All property insurance policies shall be endorsed specifically to the effect that the proceeds of any building, contents or business interruption insurance shall be made payable to Lessee. Operator shall
provide proper evidence of insurance required by Operator to Owner/Lessee annually. Such policies shall require a minimum of 30 days’ notice to Owner/Lessee in the case of cancellation, for any reason, if allowed by insurance carrier. 

  
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 Section 12.04. Maintenance of Coverages. 

Lessee shall hold all insurance policies obtained hereunder, and certificates of such policies, if any, shall be delivered to each of Lessee
and Operator. 
 Section 12.05. Waiver of Subrogation. 

To the extent obtainable from carriers and to the extent that endorsement forms are approved by the Insurance Commissioner (or comparable
office or department) of the state in which the Hotel is located, all policies of property insurance shall provide that the insurance companies will have no rights to subrogation against Lessee or Operator or the agents or employees thereof. 

Section 12.06. Blanket Coverage. 

Owner and Lessee reserve the right to provide any insurance referenced in this Article XII by one or more so-called “blanket” or
“umbrella” policies of insurance. Operator further acknowledges that the insurance coverage of the Hotel may be part of the general insurance plan of Owner or Lessee or of any of their affiliates. Owner or Lessee may elect to obtain any of
the insurance coverages set forth in this Article XII with a “deductible loss” clause providing for per occurrence deductibles. 

Section 12.07. Employment Practice Liability. 

Operator shall obtain EPL coverage insuring against potential claims against Operator by Operator’s employees, for employment related
claims. Such coverage shall have a minimum limit of $2,000,000, and shall name Owner/Lessee as additional insured. 

  
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 Section 12.08. Cyber/Network/Privacy Liability. 

Lessee shall obtain Cyber/Network/Privacy insurance against potential claims against Operator and Owner/Lessee by third parties or a
governmental authority arising from unauthorized access, unauthorized use, theft of data, virus transmission, denial of service, internet liability and failure to protect privacy and intellectual property in connection with and arising out of the
design, development and use of any systems utilized to operate and maintain the services, premises and operations of the Hotels, with minimum limits of $1,000,000 per occurrence/aggregate. 

Section 12.09. Liquor Liability. 

Where a liquor license is held in Operator’s name, Operator shall obtain Liquor Legal Liability insurance against potential claims by
third parties arising out of the serving of such. Coverages shall be in amount of minimum limits of $1,000,000 per occurrence, and shall include Owner/Lessee as additional insured. 

Section 12.10. Automobile Liability. 

(a) Owner/Lessee shall obtain Automobile Liability insuring against third party liability claims arising from the use of Owner/Lessee owned
automobiles, with minimum limits of $1,000,000 each accident. Such coverage shall include the Operator as Additional Insured as respects liability arising from the use of such automobiles in connection with the Hotel and operations incidental
thereto. Coverage shall include a Waiver of Subrogation in favor of Operator. 
 (b) Operator shall obtain Operator-Owned, Non-Owned and
Hired Automobile Liability and Physical Damage insuring against third party liability and damage of such vehicles, when such vehicles are used hired or rented by employees of Operator, with minimum limits of liability $1,000,000 each accident.
Coverage shall include a Waiver of Subrogation in favor of Owner and Lessee. 

  
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 Section 12.11. General Liability. 

Owner/Lessee shall obtain General Liability insuring against third party liability claims with minimum limits of $1,000,000 each
occurrence/$2,000,000 aggregate. Such coverage shall include the Operator as Additional Insured as respects liability arising from the operation, maintenance, and use of the Hotel and operations incidental thereto. Owner/Lessee also agree to
maintain Umbrella Liability Policy with a minimum limit of $10,000,000.00. 
 Section 12.12. Property. 

Owner/Lessee shall obtain Property insurance and Business Interruption insurance insuring the Hotel properties, as determined appropriate by
Owner/Lessee. Coverage shall include a Waiver of Subrogation in favor of Operator. 
 Section 12.13. Crime. 

Owner/Lessee shall obtain Crime coverage insuring against the dishonest acts & theft of Owner’s, Lessee’s and
Owner’s/Lessee’s customers personal property by Operator’s employees. 
 ARTICLE 13 

PROPERTY TAXES, LOCAL TAXES, LEVIES AND OTHER ASSESSMENTS 

Section 13.01. Property Taxes. 

At Lessee’s request, Operator shall pay from the Hotel Operating Account prior to the dates the same become delinquent, with the right
upon Lessee’s request to pay the same in installments to the extent permitted by law, all real and personal property taxes levied against the Property or any of its component parts. 

Section 13.02. Lessee’s Right to Contest. 

Notwithstanding the foregoing, Lessee or Owner may contest the validity or the amount of any real or personal tax or assessment. Operator
agrees to cooperate with Lessee and Owner and execute any documents or pleadings required for such purpose. 
 ARTICLE 14 

DAMAGE OR DESTRUCTION—CONDEMNATION 

Section 14.01. Damage. 
 If
at any time during the Operating Term the Hotel or any portion thereof should be damaged or destroyed, Owner and Lessee shall have the respective rights and obligations provided in the Lease with respect to damage or destruction. In the event the
Hotel is not repaired, rebuilt or replaced, Lessee may terminate this Agreement by written notice to Operator, effective as of the date sent and the parties shall treat such termination as if it were in connection with the sale of the Hotel in
accordance with Section 16.03. 

  
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 Section 14.02. Condemnation. 

If at any time during the Operating Term the whole or any part of the Property shall be taken or condemned in any eminent domain,
condemnation, compulsory acquisition or like proceeding or sale in lieu thereof by any competent authority, or if such a portion thereof shall be taken or condemned as to make it imprudent or unreasonable to use the remaining portion as a hotel of
the type and class immediately preceding such taking or condemnation, then the parties shall treat such termination as if it were in connection with the sale of Hotel in accordance with Section 16.03. Operator shall have no right to the award
from the taking or condemning authority in any such proceeding; provided, however, that this shall not prevent Operator from making a separate claim against the condemning authority for loss of its business or profits. 

ARTICLE 15 
 USE OF NAME

 During the term of this Agreement, each Hotel shall at all times be known by such name as from time to time may be selected by Lessee or
Owner. 
 ARTICLE 16 

TERMINATION 
 Section 16.01.
Inspection Failure. 
 If Operator fails two consecutive Franchisor’s quality inspections (“Inspection”), for reasons other
than capital related issues, Lessee may terminate this Agreement and such termination shall be by delivery of written notice by Lessee to Operator not less than sixty (60) days prior to the effective date of termination. Additionally, Lessee
reserves the right, at its sole and absolute discretion, to request an extra Inspection on the Hotel after Operator has failed an Inspection, for reasons other than capital related items, and if Operator fails the extra Inspection this will qualify
as two consecutive fails of Inspections and Lessee may terminate this Agreement and such termination shall be by delivery of written notice by Lessee to Operator not less than thirty (30) days prior to the effective date of termination. Lessee
will be responsible for any additional fee required by Franchisor for said extra Inspection. 
 Section 16.02. Performance Failure.

 Lessee’s ability to terminate due to performance failure will be conditioned on the occurrence of Sections 16.02 (a) and 16.02
(b) below. 
 (a) If a Hotel fails to achieve as of the end of any Fiscal Year (i) actual NOI of at least 90% of the budgeted NOI,
and (ii) 90% of such Hotel’s previous years running (12) month RevPAR index (as measured by STR) for such Fiscal Year (collectively, an “Individual Hotel Performance Failure”), subject to the cure periods below, Lessee may
terminate this 

  
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Agreement with respect to such Hotel upon sixty (60) days prior written notice to Operator. The effectiveness of any such notice of termination, however, shall be stayed until completion of
the following applicable cure periods. 
 If the Hotel Performance Failure occurs with respect to a Fiscal Year, but the Hotel achieves as of the end of the
immediately following three (3) months actual NOI of at least 100% of the budgeted NOI for such Hotel for such three (3) months, and 100% of such Hotel’s previous years running (3) month RevPAR index (as measured by STR), then
the Individual Hotel Performance Failure shall be deemed cured and Lessee shall have no right to terminate for such Individual Hotel Performance Failure (and any notice of termination with respect thereto shall be deemed null and void). 

(b) If the Hotel, after the operator has managed the Hotel for a consecutive twelve (12) month period, at any point, has a negative
RevPAR change versus its competitive set, as of the date here of, as measured by the monthly STR Report of greater than 10% for a running (12) month period (“Negative RevPAR Individual Hotel Performance Failure”), subject to the cure
periods below, Lessee may terminate this Agreement with respect to the individual Hotel upon sixty (60) days prior written notice to Operator. The effectiveness of such notice of termination however, shall be stayed until completion of the
following applicable cure period. 
 If the Hotel’s performance, as measured by the monthly STR Report, for the following three (3) consecutive
month period after notice of termination is provided, has a positive RevPAR change versus its competitive set, then the Negative RevPAR Individual Hotel Performance Failure shall be deemed cured and Lessee shall have no right to terminate for such
Negative RevPAR Individual Hotel Performance Failure (and any notice of termination with respect thereto shall be deemed null and void). If however, the Hotel’s performance at any given period after termination has been cured, as measured by
the monthly STR Report for the following twelve (12) month period, again becomes greater than negative 10% change against the individual Hotel’s competitive set as measured by the running (12) month period, Lessee may terminate this
Agreement with respect to the individual Hotel upon sixty (60) days prior written notice and Operator shall no longer have the option to cure. 

Section 16.03. Sale of Hotel. 

Owner may sell or otherwise dispose of the Hotel to any other person, partnership, firm or corporation at any time. In such event during the
Operating Term, Lessee may notify Operator in writing no less than thirty (30) days prior to any such sale of the Hotel and this Agreement shall terminate with respect to the Hotel upon the closing of the sale. Upon the sale of the hotel by the
Owner/Lessee, Operator will be entitled to an Operator Fee equivalent to the monthly average of the preceding twelve (12) months Operator Fee for a sixty (60) day period after the sale. 

Section 16.04. Bad Acts 
 This agreement
may be terminated with a sixty (60) day notice, should operator commit an act of fraud, criminal conduct, misappropriation of funds, dishonesty, or willful misconduct of the manager in connection with the management and operation of the
Hotel. Such acts will be considered “bad person” acts and will result in immediate termination of operator with no recourse against lessee or owner. 

  
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 Section 16.05. Optional Termination. 

This Agreement may be terminated by Lessee at any time without a reason upon no less than sixty (60) days prior notice to Operator.
Lessee agrees should this event occur, Lessee shall pay Administrative Member or its Affiliate, a 1% fee on Gross Revenues for as long as owners owns or leases the Hotel. Additionally, this asset management fee shall be payable under a corporate
transaction described below in Section 16.06. 
 Section 16.06. Lessee Change of Control. 

This Agreement may be terminated by Lessee or Operator upon a change of control of Lessee (as defined below) during the Operating Term. Said
termination will be exercised by delivery of written notice to the other party not less than sixty (60) days prior to the effective date of termination which notice shall set forth the effective date of termination. For purposes hereof, a
“change of control” shall be deemed to have occurred if, during the Operating Term, any of the following events occurs: 
  

	 	(i)	any “person”, as that term is used in Section 13(d) and Section 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), becomes, is discovered to be, or files a
report on Schedule 13D or 14D-1 (or any successor schedule, form or report) disclosing that such person is, a beneficial owner (as defined in Rule 13d-3 under the Exchange Act or any successor rule or regulation), directly or indirectly, of
securities of Condor Hospitality Trust, Inc., the parent of Lessee (the “Parent”) representing 50% or more of the combined voting power of the Parent’s then outstanding securities entitled to vote generally in the election of
directors; 

  

	 	(ii)	individuals who, as of the date of this Agreement, constitute the Board of Directors of the Parent or their duly elected successors cease for any reason to constitute at least a majority of the Board of Directors of the
Parent; 

  

	 	(iii)	the Parent is merged, consolidated or reorganized into or with another corporation or other legal person, or securities of the Parent are exchanged for securities of another corporation or other legal person, and
immediately after such merger, consolidation, reorganization or exchange less than a majority of the combined voting power of the then-outstanding securities of such corporation or person immediately after such transaction are held, directly or
indirectly, in the aggregate by the holders of securities entitled to vote generally in the election of directors of the Parent immediately prior to such transaction; or 

  
 32 

	 	(iv)	the Parent in any transaction or series of related transactions, sells all or substantially all of its assets to any other corporation or other legal person and less than a majority of the combined voting power of the
then-outstanding securities of such corporation or person immediately after such sale or sales are held, directly or indirectly, in the aggregate by the holders of securities entitled to vote generally in the election of directors of the Parent
immediately prior to such sale. 

 In the event Lessee terminates this Agreement solely in accordance with this
Section 16.05, Lessee shall pay Operator a termination fee equal to 50% of the Operator’s Fee paid to Operator during a number of months prior to the notice of termination equal to the lesser of 12 months or the number of months otherwise
remaining of the then Initial Term or Renewal Term. 
 Section 16.07. Operator Change of Control. 

This Agreement may be terminated by Lessee if Alan Kanders no longer has a supervisory role of Operator (as defined below) during the
Operating Term. Said termination will be exercised by delivery of written notice to the Operator, such notice to be provided within sixty (60) days following the Lessee being made aware of the event giving rise to the change of control and not
less than thirty (30) days prior to the effective date of termination which notice shall set forth the effective date of termination; provided that, in the event such written notice to Operator is not provided in accordance within the terms of
this sentence, the Lessee shall be deemed to have waived any rights to terminate this Agreement with respect to the particular change of control giving rise to the required notice. For purposes hereof, a “change of control of Operator”
shall mean (i) a change of fifty percent or more of the voting control of Operator or any of its owner entities or (ii) a substantial change in the current management of Operator. 

In addition to the rights and remedies otherwise available to the Parties at law or in equity, the following provisions will apply following
termination of this Agreement pursuant to Article 14 or any other provision of this Agreement: 
 (a) Operator shall quit, vacate,
surrender, and deliver to Owner peacefully and promptly the Hotel and all Permits and all books, records, accounts, contracts, keys, Working Capital, and all other pertinent and necessary documents and records pertaining to the Hotel and the
operation thereof. If any Permits, including but not limited to any liquor license, is issued to Operator or any of its Affiliates, Operator shall, to the extent permitted by Legal Requirements, assign or cause its Affiliate holding any such Permits
to assign to Owner or its designee all of the interest of Operator or its Affiliates in such Permits and the Hotel liquor inventory without charge (other than any out of pocket expenses of the assignment, which shall be Operating Expenses), or (if
such assignment is not permitted by applicable law) to use reasonable efforts to provide Owner or Owner’s designee with the use and benefits of such Permits and Hotel liquor inventory until such time (not to exceed 180 days) as Owner and/or its
designee are able to obtain new Permits; provided that Owner shall indemnify, defend and hold harmless Operator and its Affiliates from claims and liabilities arising from the post-termination use of such Permits; 

  
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 (b) Operator shall deliver to Owner any and all of Owner’s properties and assets within the
possession of Operator, including keys, locks and safe combinations, files, correspondence, information regarding group bookings, reservation lists, ledgers, bank statements for the Operating Account and FF&E Reserve, accounting books and
records, all electronic data maintained by Operator relating to the Hotel (which data shall be delivered on computer disc in a format that is accessible and readable by Owner’s then current computer systems), insurance policies, bonds and other
documents, agreements, leases, licenses, records and plans (including, without limitation, the as-built or record set plans) relating to the operation of the Hotel, provided that Operator may retain possession of copies of any of the foregoing; 

(c) Operator shall keep confidential all information concerning the Hotel obtained by Operator or in Operator’s possession, and not use
any of it for its own account, for the account of others or in any other manner that would directly or indirectly compete with the Hotel; 

(d) Operator shall remit to Owner the balance (if any) of the Operating Account and the FF&E Reserve, after computation and disbursement
to Operator of all accrued and unpaid Management Fees and Operating Expenses reimbursable to Operator; 
 (e) As expeditiously as reasonably
possible, prepare and deliver to Owner the financial reports required under this Agreement with respect to the final Accounting Period and Fiscal Year and remit to Owner the amount (if any) shown as owing to Owner in the final financial statements
on account of previously overpaid Management Fee, Operating Expenses reimbursable to Operator or other payments due under this Agreement; and 

(f) Operator shall do all acts and execute and deliver all documents reasonably requested by Owner in connection with the transfer, all
without consideration therefor, and otherwise reasonably cooperate with Owner and any successor operator to insure or facilitate orderly continuation of the business of the Hotel; 

(g) The rights and liabilities of the Parties having accrued prior to termination of this Agreement shall continue; 

(h) Operator will turn over possession of the Hotel in a clean, safe and secure manner; 

(i) Prior to termination, Operator agrees to maintain operating inventories at standards consistent with past practice and the Hotel pursuant
to the Annual Plan and existing repair and maintenance schedules; 
 (j) Owner, at its option, may install a shadow management team in the
Hotel during the ten (10) day period immediately preceding the termination date to have daily access to the Hotel and its books and records; provided that such team shall not (a) unreasonably interfere with the management and operations of
the Hotel, and (b) consist of more than ten (10) members. Owner shall use its reasonable efforts to cause the entity that succeeds Operator to hire a sufficient number of Hotel Employees to avoid a WARN Act violation; 

  
 34 

 (k) Operator shall at all times fully co-operate with and explain all aspects of the business
and operation of the Hotel to Owner or any persons authorized by Owner to allow Owner or such persons to successfully and efficiently conduct the business after the expiration of the Term. 

Section 16.08 Bookings Beyond Expiration of Term. 

Operator shall diligently discharge all its obligations under this Agreement during the whole of the Term, and in particular shall continue to
advertise and promote the Hotel and actively seek and accept bookings notwithstanding that they are to occur after the expiration of the Term. Owner shall be responsible on its own account for all costs, charges and commissions payable for bookings
made by Operator in the ordinary course of business of the Hotel which are for dates after the expiration of the Term. 
 Section 16.09 Tax Law Change.

 Lessee may terminate this Agreement upon 60 days’ notice to Operator if Lessee ceases to be qualified as a real estate investment
trust or if the United States tax laws change to allow a hotel REIT to self-manage its properties. In such event, Lessee shall pay Operator a termination fee equal to 50% of the Operator’s Fee paid to Operator during a number of months prior to
the notice of termination equal to the lesser of 12 months or the number of months otherwise remaining of the then Initial Term or Renewal Term. 

Section 16.10 Termination Fees. 
 Except as
provided in Sections 14.01 and 14.02, Operator shall not be entitled to a termination fee or compensation in the event this agreement is terminated for a Hotel or Hotels by Lessee. 

ARTICLE 17 
 DEFAULT AND
REMEDIES 
 Section 17.01. Events of Default- Remedies. 

(a) The following shall constitute Events of Default: 

(1) The failure of Operator to diligently and efficiently operate the Hotel in accordance with the provisions of this Agreement; 

(2) The failure of Operator to pay any amount to Lessee provided for herein for a period of five (5) days after written notice by Lessee
of failure to pay such sum when payable; 
 (3) The failure of Lessee to pay any amount to Operator provided for herein for a period of five
(5) days after written notice by Operator of failure to pay such sum when payable; 

  
 35 

 (4) The filing of a voluntary petition in suspension of payments, bankruptcy or insolvency by
either Lessee or Operator or any entity which owns or controls such party or if any such party otherwise voluntarily avails itself of any federal or state laws for the relief of debtors or admits in writing its inability to pay its debts as they
become due; 
 (5) The consent to an involuntary petition in bankruptcy or the failure to vacate within sixty (60) days from the date
of entry thereof any order approving an involuntary petition by or against either Lessee or Operator; 
 (6) The entering of an order,
judgment or decree by any court of competent jurisdiction, on the application of a creditor, adjudicating Lessee or Operator a bankrupt or insolvent or appointing a judicial receiver, trustee or liquidator of all or a substantial part of such
party’s assets, and such order, judgment or decree shall continue unstayed and in effect for a period of one hundred twenty (120) consecutive days; 

(7) The failure of either Lessee or Operator to perform, keep or fulfill any of the other covenants, undertakings, obligations or conditions
set forth in this Agreement, and the continuance of any such default for a period of thirty (30) days after written notice of such failure; 

(8) Default or termination of the franchise license for a Hotel as a result of any action, or failure to act, on the part of Operator; 

(9) Failure by Operator to pay, when due, the accounts payable for the Hotels for which Lessee had previously reimbursed Operator. 

(10) Hotel receives a “failure” or its equivalent in any quality inspection report from any of the Franchisors, if such deficiencies
are within Operator’s reasonable control. 
 (11) Failure by Operator to execute any and all subordination agreements, estoppel
certificates and other documents requested by Lessee or Owner and/or the Holder to further evidence the subordination of this Agreement and Operator’s rights hereunder. 

(b) Upon the occurrence of any Event of Default, the non-defaulting party shall give to the defaulting party notice of its intention to
terminate this Agreement after the expiration of a period of ten (10) days from such date of notice and, upon the expiration of such period, this Agreement shall terminate and expire without penalty. If, however, with respect to the Events of
Default referred to in items (1), (4), (5), (6), (7), (9) (10) and (11) of subsection (a) above, unless a specific right of termination is specified elsewhere in this Agreement for the event in question, upon receipt of such
notice, the defaulting party shall promptly and with all due diligence cure the default or take and continue action to cure such default within such ten (10) day period; provided, in the case of an event described in Section 17.01(a)(10),
and subject to Lessee’s termination rights pursuant to Section 16.01, the Operator shall cure such default by receipt of a favorable quality inspection report upon an inspection by the Franchisor within six (6) months following the
failed inspection. If such default shall not be capable of being cured within such ten (10) day period, then provided the defaulting party diligently pursues the cure of 

  
 36 

 
such default, such party shall have an additional five (5) days to cure any such default unless otherwise extended by the non-defaulting party. The procedure set forth in the preceding two
sentences shall not be available for the curing of any default under items (2), (3) or (8) of subsection (a) above. In the event such default is not cured by the expiration of such period, the non-defaulting period may terminate this
Agreement effective upon expiration of such period without penalty or payment of any fee. 
 Section 17.02. Rights Not Exclusive. 

(a) The rights granted under this Article XVII shall not be in substitution for, but shall be, except as otherwise provided in this
Agreement, in addition to any and all rights and remedies for breach of contract granted by applicable provisions of law; provided, however, upon any termination of this Agreement by Operator or Lessee as provided in this Agreement, Operator shall
be entitled to recover only such sums as are owing to Operator under this Agreement on the date of any such termination and in no event will Operator have any claim or cause of action for “future profits,” damages resulting from
termination or otherwise under this Agreement. 
 (b) No failure of Operator or Lessee to insist upon the strict performance of any
covenant, agreement, term or condition of this Agreement or to exercise any right or remedy consequent upon a breach thereof, shall constitute a waiver of any such breach or any subsequent breach of such covenant, agreement, term or condition. No
covenant, agreement, term or condition of this Agreement and no breach thereof shall be waived, altered or modified except by written instrument signed by both Lessee and Operator. No waiver of any breach shall affect or alter this Agreement but
each and every covenant, agreement, term and condition of this Agreement shall continue in full force and effect with respect to any other then existing or subsequent breach thereof. 

ARTICLE 18 
 NOTICES 

Section 18.01. Notices. 

(a) Any notice, statement or demand required to be given under this Agreement shall be in writing and shall be delivered by certified or
registered mail, postage prepaid, return receipt requested, or by overnight delivery with proof of delivery, or by facsimile with receipt of transmission, addressed to the parties hereto at their respective addresses listed below: 

(1) Notices to Lessee shall be addressed: 

Condor Hospitality Trust, Inc. 

1800 West Pasewalk Avenue, Suite 200 

Norfolk, NE 68702-1448 

Attention: J. William Blackham, CEO 

Facsimile: (402) 371-4229 

  
 37 

 (2) Notices to Operator shall be addressed: 

Three Wall Capital 

40 West 57th Street 

29th Floor 

New York, NY 10019 

Attention: Alan J. Kanders 

(b) All notices, statements, demands and requests shall be effective three (3) days after being deposited in the United States mail or
one day after being sent by overnight delivery or by facsimile. However, the time period in which a response to any such notice, statement, demand or request must be given shall commence to run from date of receipt by the addressee thereof as shown
on the return receipt of the notice, statement, demand or request, but in all events not later than the tenth (10th) day after it shall have been mailed as required herein. 

(c) By giving to the other party at least thirty (30) days written notice thereof, either party shall have the right from time to time
and at any time during the Operating Term to change their respective addresses for notices, statements, demands and requests, provided such new address shall be within the United States of America. 

ARTICLE 19 
 ASSIGNMENT

 Section 19.01. No Assignment by Operator. 

Notwithstanding anything to the contrary set forth in this Agreement, without the prior written consent of Lessee (which consent may be
withheld in Lessee’s sole and absolute discretion), Operator shall have no right to sell, transfer or assign (or permit the sale, transfer or assignment of) any of its rights, duties or obligations under this Agreement in any manner, either
directly or indirectly, voluntarily, or by operation of law. 
 Section 19.02. Assignment by Lessee. 

Lessee may transfer or assign its rights and obligations under this Agreement without the consent of Operator but shall deliver to Operator
written notice of such transfer or assignment not less than ten (10) days prior to the effective date thereof; provided, however, in the event of the assignment of this Agreement to a party that is not an Affiliate, Operator shall have the
right to terminate this Agreement within 15 days after receipt of written notice of such assignment, which termination will be effective within 30 days of Lessee’s receipt of such termination notice. Any transfer or assignment of this Agreement
by Lessee shall include an express assumption by the transferee or assignee of Lessee’s obligations hereunder. Nothing herein shall be deemed to require Lessee to assign or attempt to assign this Agreement to any third party, including any
buyer of a Hotel. 

  
 38 

 ARTICLE 20 

SUBORDINATION 

Section 20.01. Subordination To Mortgage. 

Operator hereby agrees that this Agreement, including, but not limited to Operator’s Fee, shall in all respects be and is hereby
expressly made subordinate and inferior to the liens, security interest and/or any Mortgage and to any promissory note and other indebtedness secured or to be secured thereby and to all other instruments evidencing or securing or to evidence or
secure indebtedness, and all amendments, modifications, supplements, consolidations, extensions and revisions of such note and other instruments and any other indebtedness of Lessee or Owner, secured or unsecured. Operator shall execute any and all
subordination agreements, estoppel certificates and other documents requested by Lessee or Owner and/or the Holder to further evidence the subordination of this Agreement and Operator’s rights hereunder including without limitation providing
any purchaser of a Hotel at a foreclosure sale or deed-in-lieu of foreclosure (including the lender) with the right to terminate this Agreement; provided, however, Lessee shall use its commercially reasonable efforts to obtain from the holder of any
Mortgage a nondisturbance agreement, in form reasonably acceptable to Operator providing that this Agreement shall remain in full force and effect notwithstanding the fact that the Mortgage has been foreclosed. 

Section 20.02. Foreclosure. 

Prior to termination of this Agreement by foreclosure under the Mortgage or by acquisition of the property to be covered by the Mortgage by
deed in lieu of foreclosure, Operator shall have the right to enjoy all rights and privileges conferred upon it pursuant to this Agreement, including, without limitation the rights to the Operator’s Fee, and Operator shall incur no liability to
the Holder for acting pursuant to the terms of this Agreement; provided, however, Operator shall be required to (and does hereby agree to) repay to the Holder any Operator’s Fee paid to Operator under this Agreement from and after the date
which is thirty (30) days after the date of receipt by Operator of a notice of default under the Mortgage, which default is not cured and results in the acceleration of the indebtedness secured by the Mortgage and the ultimate foreclosure of
the liens and/or security interest under the Mortgage and/or other acquisition of the property covered thereby by the Holder in lieu of foreclosure. In the event of such foreclosure, Operator shall have the right to terminate this Agreement on
thirty (30) days’ written notice to Lessee. Notwithstanding the foregoing, Operator may pursue, as an unsecured creditor, a claim for all amounts due and owing to Operator under this Management Agreement in accordance with the terms of
this Section 20.02. 
 Section 20.03. Estoppel Certificates. 

Lessee and Operator agree, at any time and from time to time, upon not less than 10 days prior written notice from the other party or any
purchaser or lender, to provide a statement in writing certifying that this Agreement is unmodified and in full force and effect (or, if there have been modifications, that the same is full and force and effect as modified and stating the
modifications), and stating whether or not to the best knowledge of the signer of such certificate, 

  
 39 

 
there exists any default in the performance of any obligation contained in this Agreement, and if so, specifying each such default of which a signer may have knowledge. Any statement delivered
pursuant to this Section may be relied upon by the other party and by the prospective lender or purchaser. 
 ARTICLE 21 

MISCELLANEOUS 

Section 21.01. Further Documentation and Reporting Compliance. 

Lessee and Operator shall execute and deliver all appropriate supplemental agreements and other instruments, and take any other action
necessary to make this Agreement fully and legally effective, binding, and enforceable in accordance with the terms hereof as between them and as against third parties. Operator acknowledges that Parent is a reporting company under the Securities
Exchange Act of 1934, as amended, (the “Exchange Act”) and other federal laws, including the Sarbanes-Oxley Act of 2002, and Operator shall reasonably cooperate in providing Lessee information as necessary for Parent to prepare and submit
its reports under such laws in a timely fashion. 
 Section 21.02. Captions. 

The titles to the several articles of this Agreement are inserted for convenience only and are not intended to affect the meaning of any of
the provisions hereof. 
 Section 21.03. Successors and Assigns. 

This Agreement shall be binding upon and inure to the benefit of Lessee, its successors and/or assigns, and subject to the provisions of
Article XIX, shall be binding upon and inure to the benefit of Operator, its permitted successors and assigns. 
 Section 21.04.
Competitive Market Area. 
 Operator hereby agrees, for the benefit of Lessee, its successors and assigns, except for the hotels, if any,
listed as Exhibit A-4, that Operator (and its Affiliates) will not own, operate, lease, manage, or otherwise have an interest in, directly or indirectly, any hotel within a three (3) mile radius of any Hotel during the Operating Term unless
expressly consented to in writing by Lessee in advance, which consent may be withheld in Lessee’s sole and absolute discretion. 

Section 21.05. Assumption of Post Termination Obligations. 

In the event of termination of this Agreement, Lessee shall be responsible for assuming obligations under contracts entered into by Operator
only to the extent that any such contract shall have been entered into in accordance with Section 4.05(a) and Lessee shall be responsible for the payment of obligations incurred by Operator in the operation of the Hotel only to the extent that
such obligations shall have been incurred in accordance with the terms of this Agreement, and Operator hereby agrees to indemnify and to hold Lessee harmless from and against any liability in connection with any such contracts, agreements or
obligations not so 

  
 40 

 
approved in writing by Lessee. Lessee will indemnify and hold Operator harmless from all costs, expenses, claims, damages and liabilities, including without limitation, lawyers’ fees and
disbursements, arising or resulting from Lessee’s failure following the expiration or earlier termination (for whatever cause) of this Agreement to provide all of the services contracted for in connection with the business booked on
commercially reasonable terms for the Hotels on or prior to the date of such expiration or termination. The provisions of this Section will survive any expiration or termination of this Agreement and will be binding upon Lessee and its successors
and assigns, including any successor or assign that becomes the beneficial or legal owner of the Hotels after the effective date of any such expiration or termination. 

Section 21.06. Entire Agreement. 

This Agreement, together with the Exhibits hereto, constitutes the entire Agreement between the parties relating to the subject matter hereof,
superseding all prior agreements or undertakings, oral or written. This Agreement and the Exhibits hereto shall be construed and interpreted without reference to any canon or rule of law requiring interpretation against the party drafting or causing
the drafting of this Agreement or the portions in question, it being agreed and understood that all parties have participated in the preparation of this Agreement. 

Section 21.07. Governing Law. 

This Agreement shall be construed and enforced in accordance with the laws of the State of Georgia. 

Section 21.08. No Political Contributions. 

Any provision hereof to the contrary notwithstanding, no money or property of the Hotel shall be paid or used or offered, nor shall Lessee or
Operator directly or indirectly pay or use or offer, consent or agree to pay or use or offer any money or property of the Hotel, for or in aid of any political party, committee or organization, or for or in aid of, any corporation, joint stock or
other association organized or maintained for political purposes, or for, or in aid or, any candidate for political office or for nomination for such office, or in connection with any election including referendum for constitutional amendment, or
for any political purpose whatever, or for lobbying in connection with legislation or regulation thereunder, or for the reimbursement for indemnification of any person for money or property so used. 

Section 21.09. Eligible Independent Contractor. 

(a) At the effective time of this Agreement, Operator shall qualify as an “eligible independent contractor” as defined in
Section 856(d)(9) of the Internal Revenue Code of 1986, as amended (the “Code”). To that end: 
  

	 	(i)	during the Operating Term, Operator shall not permit wagering activities to be conducted at or in connection with the Hotels; 

  

	 	(ii)	during the Operating Term, Operator shall not own, directly or indirectly (within the meaning of Section 856(d)(5) of the Code), more than 35% of the shares of Supertel Hospitality, Inc.; 

  
 41 

	 	(iii)	during the Operating Term, no more than 35% of the total combined voting power of Operator’s outstanding stock (or 35% of the total shares of all classes of its outstanding stock) shall be owned, directly or
indirectly, by one or more persons owning 35% or more of the outstanding stock of Supertel Hospitality, Inc.; and 

  

	 	(iv)	At the effective time, Operator shall be actively engaged in the trade or business of operating “qualified lodging facilities” (defined below) for a person who is not a “related person” within the
meaning of Section 856(d)(9)(F) of the Code with respect to the Parent or Lessee (“Unrelated Persons”). In order to meet this requirement, Operator agrees that it (i) shall derive at least 10% of both its revenue and profit from
operating “qualified lodging facilities” for Unrelated Persons and (ii) shall comply with any regulations or other administrative guidance under Section 856(d)(9) of the Code with respect to the amount of hotel management
business with Unrelated Persons that is necessary to qualify as an “eligible independent contractor” with the meaning of such Code Section. 

(b) A “qualified lodging facility” is defined in Section 856(d)(9)(D) of the Code and means a “lodging facility”
(defined below), unless wagering activities are conducted at or in connection with such facility by any person who is engaged in the business of accepting wagers and who is legally authorized to engage in such business at or in connection with such
facility. A “lodging facility” is a hotel, motel or other establishment more than one-half of the dwelling units in which are used on a transient basis, and includes customary amenities and facilities operated as part of, or associated
with, the lodging facility so long as such amenities and facilities are customary for other properties of a comparable size and class owned by other owners unrelated to Supertel Hospitality, Inc. 

(c) Operator shall not sublet any Hotel or enter into any similar arrangement on any basis such that the rental or other amounts to be paid
by the sublessee thereunder would be based, in whole or in part, on either (a) the net income or profits derived by the business activities of the sublessee, or (b) any other formula such that any portion of the rent would fail to qualify
as “rents from real property” within the meaning of Section 856(d) of the Internal Revenue Code, or any similar or successor provision thereto. 

Section 21.10. Time of the Essence. 

Time is of the essence of this Agreement. 

Section 21.11. Offsets. 

Each party may offset amounts owed to another party hereunder against any amounts owed to such party, except to the extent any such offset is
prohibited by the terms of the Lessee (or its Affiliates) credit agreements. 

  
 42 

 Section 21.12. Attorney’s Fees. 

If any party brings an action against another party to enforce any provision of this Agreement, the prevailing party in such action shall be
entitled to recover its court costs, attorney’s fees and expenses in the judgment rendered through such action. 
 Section 21.13.
Final Accounting. 
 (a) In addition to the reports required by Section 9.02, within sixty (60) days following the effective date
of expiration or termination of this Agreement, Operator shall prepare and submit to Lessee a final accounting of Hotel operations through the effective date of such expiration or termination, which accounting shall be in the form of the financial
statements required hereunder. 
 (b) Upon the effective date of expiration or termination of this Agreement, Operator shall deliver
possession of the Hotel, and any cash, property and other assets pertaining thereto, together with any and all keys or other access devices, to Lessee. 

(c) Upon the expiration or termination of this Agreement, Operator shall reasonably cooperate with and assist Lessee as may be necessary for
the transfer of the operations and management of the Hotels to the successor operator and the transfer any and all Hotel licenses and permits to Lessee or Lessee’s designee. 

Section 21.14. Franchisor Communications. 

During the Operating Term, Operator shall promptly deliver to Lessee copies of any deficiency notices or similar notices received from a
Franchisor and any response thereto. 

  
 43 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first set
forth above. 
  

			
	LESSEE:
	
	SPRING STREET HOTEL OPCO LLC

 
			
		
	 By:
	 	 Spring Street Hotel OpCo II LLC,

its sole member

 
					
			
		 	By:	 	 TWC Spring OpCo LLC,

Its Administrative Member

 
							
				
		 		 	By:	 	 TWC Spring Street Hotel GP LLC,

Its Managing Member

 
							
				
		 	By:	 	/s/ Alan Kanders	 	
		 		 	Alan Kanders, Manager	 	

  

			
	OPERATOR:
	
	BOAST HOTEL MANAGEMENT COMPANY LLC
		
	By:	 	/s/ Alan Kanders
	Name:	 	Alan Kanders
	Title:	 	Authorized Signatory

  
 44 

 EXHIBIT A 

HOTEL PROPERTIES AND OWNERS 
  

					
	 Hotel
	 	 Owner
	 	 Location

	Aloft Atlanta Downtown	 	Spring Street Hotel Property LLC	 	300 Spring Street, Atlanta GA

  
 45 

 EXHIBIT A-1 

Competitive Set 
  

													
	STR#	 	Name	  	City, State	  	Zip	  	Phone	  	Rooms	  	Open Date
	6998	 	aloft Hotel Atlanta Downtown	  	Atlanta, GA	  	30308-3007	  	(404) 523-1144	  	254	  	198209
	19131	 	 Holiday Inn Atlanta Downtown

Centennial Park
	  	Atlanta, GA	  	30303-1713	  	(404) 524-5555	  	260	  	198506
	57271	 	 Hilton Garden Inn

Atlanta Downtown
	  	Atlanta, GA	  	30313-1809	  	(404) 577-2001	  	242	  	200803
	61408	 	Courtyard Atlanta Downtown	  	Atlanta, GA	  	30303-1054	  	(404) 222-2416	  	150	  	201101
		 		  		  		  		  	906	  	

  
 46 

 EXHIBIT A-2 

Accounting Software and Payroll Processes 

Accounting Software — 3 AccKnowledge® 

Payroll System — M3 RightTime® 

Payroll System — SimpleHR 
 Payroll System — ADP 

  
 47 

 EXHIBIT A-4 

List of Operator’s Hotels Within 3 Mile Radius 
  

	 	•	 	None 

  
 48 

 EXHIBIT B 

Franchise Agreements 
  

					
	Hotel	 	Location	 	Franchisor
	Aloft Atlanta Downtown	 	300 Spring Street, Atlanta, GA	 	The Sheraton LLC

  
 49EX-10.4

 Exhibit 10.4 
  

 
 LOAN AGREEMENT 

Dated as of August 22, 2016 

between 
 SPRING STREET HOTEL
PROPERTY LLC 
 and 

SPRING STREET HOTEL OPCO LLC, 

collectively, as Borrower 
 and

 LOANCORE CAPITAL CREDIT REIT LLC, 

as Lender 
  

 

 TABLE OF CONTENTS 

 

									
	 1.
	 	DEFINITIONS; PRINCIPLES OF CONSTRUCTION	  	 	1	  
		 	1.1	  	 Specific Definitions
	  	 	1	  
		 	1.2	  	 Index of Other Definitions
	  	 	21	  
		 	1.3	  	 Principles of Construction
	  	 	23	  
			
	 2.
	 	GENERAL LOAN TERMS	  	 	23	  
		 	2.1	  	 The Loan
	  	 	23	  
		 	2.2	  	 Interest; Monthly Payments
	  	 	24	  
		 		  	 2.2.1    Generally
	  	 	24	  
		 		  	 2.2.2    Default Rate
	  	 	24	  
		 		  	 2.2.3    Unavailability or Illegality of LIBOR
	  	 	24	  
		 		  	 2.2.4    Taxes
	  	 	24	  
		 		  	 2.2.5    Change in Law; Additional Costs
	  	 	25	  
		 		  	 2.2.6    Breakage Indemnity
	  	 	26	  
		 		  	 2.2.7    New Payment Date
	  	 	26	  
		 	2.3	  	 Loan Repayment
	  	 	26	  
		 		  	 2.3.1    Repayment
	  	 	26	  
		 		  	 2.3.2    Mandatory Prepayments
	  	 	27	  
		 		  	 2.3.3    Optional Prepayments
	  	 	27	  
		 		  	 2.3.4    Prepayments; Generally
	  	 	27	  
		 	2.4	  	 Release of Property
	  	 	28	  
		 		  	 2.4.1    Release Upon Payment in Full
	  	 	28	  
		 		  	 2.4.2    Release of Release Parcel
	  	 	28	  
		 	2.5	  	 Payments and Computations
	  	 	30	  
		 		  	 2.5.1    Making of Payments
	  	 	30	  
		 		  	 2.5.2    Computations
	  	 	30	  
		 		  	 2.5.3    Late Payment Charge
	  	 	30	  
		 	2.6	  	 Interest Rate Protection Agreements
	  	 	31	  
		 		  	 2.6.1    Interest Rate Protection Agreement
	  	 	31	  
		 		  	 2.6.2    Execution of Documents
	  	 	32	  
		 		  	 2.6.3    No Obligation of Lender
	  	 	32	  
		 		  	 2.6.4    Receipts from Interest Rate Protection Agreements
	  	 	32	  
		 		  	 2.6.5    Failure to Provide Interest Rate Protection
Agreement
	  	 	32	  
		 	2.7	  	 Fees; Spread Maintenance Premium
	  	 	33	  
		 		  	 2.7.1    Exit Fee
	  	 	33	  
		 		  	 2.7.2    Spread Maintenance Premium
	  	 	33	  
		 	2.8	  	 Extension Options
	  	 	33	  
			
	 3.
	 	CASH MANAGEMENT AND RESERVES	  	 	34	  
		 	3.1	  	 Cash Management Arrangements
	  	 	34	  
		 	3.2	  	 Required Repairs
	  	 	35	  
		 		  	 3.2.1    Completion of Required Repairs
	  	 	35	  
		 		  	 3.2.2    Required Repairs Reserves
	  	 	35	  
		 	3.3	  	 Taxes
	  	 	35	  
		 	3.4	  	 Insurance
	  	 	36	  
		 	3.5	  	 Capital/FF&E Expense Reserves
	  	 	36	  

  
 i 

									
		 	3.6	  	 PIP Reserve Subaccount
	  	 	37	  
		 	3.7	  	 Operating Expense Subaccount
	  	 	38	  
		 	3.8	  	 Casualty/Condemnation Subaccount
	  	 	38	  
		 	3.9	  	 Security Deposits
	  	 	38	  
		 	3.10	  	 Cash Collateral Subaccount
	  	 	39	  
		 	3.11	  	 Grant of Security Interest; Application of Funds
	  	 	39	  
		 	3.12	  	 Property Cash Flow Allocation
	  	 	40	  
			
	 4.
	 	REPRESENTATIONS AND WARRANTIES	  	 	41	  
		 	4.1	  	 Organization; Special Purpose
	  	 	41	  
		 	4.2	  	 Proceedings; Enforceability
	  	 	41	  
		 	4.3	  	 No Conflicts
	  	 	41	  
		 	4.4	  	 Litigation
	  	 	42	  
		 	4.5	  	 Agreements
	  	 	42	  
		 	4.6	  	 Title
	  	 	42	  
		 	4.7	  	 No Bankruptcy Filing
	  	 	43	  
		 	4.8	  	 Full and Accurate Disclosure
	  	 	43	  
		 	4.9	  	 Tax Filings
	  	 	44	  
		 	4.10	  	 ERISA; No Plan Assets
	  	 	44	  
		 	4.11	  	 Compliance
	  	 	44	  
		 	4.12	  	 Major Contracts
	  	 	45	  
		 	4.13	  	 Federal Reserve Regulations; Investment Company Act; Bank Holding Company
	  	 	45	  
		 	4.14	  	 Easements; Utilities and Public Access
	  	 	45	  
		 	4.15	  	 Physical Condition
	  	 	46	  
		 	4.16	  	 Leases
	  	 	46	  
		 	4.17	  	 Fraudulent Transfer
	  	 	46	  
		 	4.18	  	 Ownership of Borrower
	  	 	46	  
		 	4.19	  	 Purchase Options
	  	 	47	  
		 	4.20	  	 Management Agreement
	  	 	47	  
		 	4.21	  	 Hazardous Substances
	  	 	47	  
		 	4.22	  	 Name; Principal Place of Business
	  	 	48	  
		 	4.23	  	 Other Debt
	  	 	48	  
		 	4.24	  	 Assignment of Leases and Rents
	  	 	48	  
		 	4.25	  	 Insurance
	  	 	48	  
		 	4.26	  	 FIRPTA
	  	 	48	  
		 	4.27	  	 Fiscal Year
	  	 	48	  
		 	4.28	  	 Intellectual Property/Websites
	  	 	48	  
		 	4.29	  	 Operations Agreements
	  	 	48	  
		 	4.30	  	 Illegal Activity
	  	 	48	  
		 	4.31	  	 Operating Lease
	  	 	48	  
		 	4.32	  	 Franchise Agreement
	  	 	49	  
			
	 5.
	 	COVENANTS	  	 	49	  
		 	5.1	  	 Existence
	  	 	49	  
		 	5.2	  	 Taxes and Other Charges
	  	 	49	  
		 	5.3	  	 Access to Property
	  	 	50	  

  
 ii 

									
		 	5.4	  	 Repairs; Maintenance and Compliance; Alterations
	  	 	50	  
		 		  	 5.4.1    Repairs; Maintenance and Compliance
	  	 	50	  
		 		  	 5.4.2    Alterations
	  	 	50	  
		 	5.5	  	 Performance of Other Agreements
	  	 	51	  
		 	5.6	  	 Cooperate in Legal Proceedings
	  	 	51	  
		 	5.7	  	 Further Assurances
	  	 	52	  
		 	5.8	  	 Environmental Matters
	  	 	52	  
		 		  	 5.8.1    Hazardous Substances
	  	 	52	  
		 		  	 5.8.2    Environmental Monitoring
	  	 	52	  
		 		  	 5.8.3    O & M Program
	  	 	54	  
		 	5.9	  	 Title to the Property
	  	 	54	  
		 	5.10	  	 Leases
	  	 	54	  
		 		  	 5.10.1    Generally
	  	 	54	  
		 		  	 5.10.2    Additional Covenants with respect to Leases
	  	 	54	  
		 	5.11	  	 Estoppel Statement
	  	 	55	  
		 	5.12	  	 Property Management
	  	 	55	  
		 		  	 5.12.1    Management Agreement
	  	 	55	  
		 		  	 5.12.2    Termination of Manager
	  	 	56	  
		 	5.13	  	 Special Purpose Bankruptcy Remote Entity
	  	 	57	  
		 	5.14	  	 Assumption in Non-Consolidation Opinion
	  	 	57	  
		 	5.15	  	 Change in Business or Operation of Property
	  	 	57	  
		 	5.16	  	 Debt Cancellation
	  	 	57	  
		 	5.17	  	 Affiliate Transactions
	  	 	57	  
		 	5.18	  	 Zoning
	  	 	57	  
		 	5.19	  	 No Joint Assessment
	  	 	57	  
		 	5.20	  	 Principal Place of Business
	  	 	58	  
		 	5.21	  	 Change of Name, Identity or Structure
	  	 	58	  
		 	5.22	  	 Indebtedness
	  	 	58	  
		 	5.23	  	 Licenses; Intellectual Property; Website
	  	 	58	  
		 		  	 5.23.1    Licenses
	  	 	58	  
		 		  	 5.23.2    Intellectual Property
	  	 	58	  
		 		  	 5.23.3    Website
	  	 	58	  
		 	5.24	  	 Compliance with Restrictive Covenants
	  	 	59	  
		 	5.25	  	 ERISA
	  	 	59	  
		 	5.26	  	 Prohibited Transfers
	  	 	60	  
		 	5.27	  	 Liens
	  	 	60	  
		 	5.28	  	 Dissolution
	  	 	60	  
		 	5.29	  	 Expenses
	  	 	61	  
		 	5.30	  	 Indemnity
	  	 	61	  
		 	5.31	  	 Patriot Act Compliance
	  	 	63	  
		 	5.32	  	 Approval of Major Contracts
	  	 	65	  
		 	5.33	  	 Operating Lease
	  	 	65	  
		 	5.34	  	 Franchise Agreement and Hotel Covenants
	  	 	65	  
			
	 6.
	 	NOTICES AND REPORTING	  	 	66	  
		 	6.1	  	 Notices
	  	 	66	  
		 	6.2	  	 Borrower Notices and Deliveries
	  	 	68	  

  
 iii 

									
		 	6.3	  	 Financial Reporting
	  	 	68	  
		 		  	 6.3.1    Bookkeeping
	  	 	68	  
		 		  	 6.3.2    Annual Reports
	  	 	68	  
		 		  	 6.3.3    Monthly/Quarterly Reports
	  	 	69	  
		 		  	 6.3.4    Compliance Certificates
	  	 	70	  
		 		  	 6.3.5    Other Reports
	  	 	70	  
		 		  	 6.3.6    Annual Budget
	  	 	70	  
		 		  	 6.3.7    Additional Operating Expenses
	  	 	70	  
		 		  	 6.3.8    Hotel Accounting
	  	 	71	  
		 		  	 6.3.9    Breach
	  	 	71	  
			
	 7.
	 	INSURANCE; CASUALTY; AND CONDEMNATION	  	 	71	  
		 	7.1	  	 Insurance
	  	 	71	  
		 		  	 7.1.1    Coverage
	  	 	71	  
		 		  	 7.1.2    Policies
	  	 	74	  
		 	7.2	  	 Casualty
	  	 	75	  
		 		  	 7.2.1    Notice; Restoration
	  	 	75	  
		 		  	 7.2.2    Settlement of Proceeds
	  	 	75	  
		 	7.3	  	 Condemnation
	  	 	76	  
		 		  	 7.3.1    Notice; Restoration
	  	 	76	  
		 		  	 7.3.2    Collection of Award
	  	 	76	  
		 	7.4	  	 Application of Proceeds or Award
	  	 	76	  
		 		  	 7.4.1    Application to Restoration
	  	 	76	  
		 		  	 7.4.2    Application to Debt
	  	 	77	  
		 		  	 7.4.3    Procedure for Application to Restoration
	  	 	78	  
			
	 8.
	 	DEFAULTS	  	 	78	  
		 	8.1	  	 Events of Default
	  	 	78	  
		 	8.2	  	 Remedies
	  	 	81	  
		 		  	 8.2.1    Acceleration
	  	 	81	  
		 		  	 8.2.2    Remedies Cumulative
	  	 	81	  
		 		  	 8.2.3    Severance
	  	 	82	  
		 		  	 8.2.4    Delay
	  	 	82	  
		 		  	 8.2.5    Lender’s Right to Perform
	  	 	82	  
			
	 9.
	 	SECONDARY MARKET PROVISIONS	  	 	83	  
		 	9.1	  	 Sale of Note and Secondary Market Transaction
	  	 	83	  
		 		  	 9.1.1    General; Borrower Cooperation
	  	 	83	  
		 		  	 9.1.2    Use of Information
	  	 	84	  
		 		  	 9.1.3    Borrower Obligations Regarding Disclosure
Documents
	  	 	84	  
		 		  	 9.1.4    Borrower Indemnity Regarding Filings
	  	 	85	  
		 		  	 9.1.5    Indemnification Procedure
	  	 	85	  
		 		  	 9.1.6    Contribution
	  	 	85	  
		 		  	 9.1.7    Survival
	  	 	86	  
		 	9.2	  	 Severance of Loan
	  	 	86	  
		 	9.3	  	 Costs and Expenses
	  	 	87	  

  
 iv 

									
			
	 10.
	 	MISCELLANEOUS	  	 	87	  
		 	10.1	  	 Exculpation
	  	 	87	  
		 	10.2	  	 Brokers and Financial Advisors
	  	 	91	  
		 	10.3	  	 Retention of Servicer
	  	 	92	  
		 	10.4	  	 Survival
	  	 	92	  
		 	10.5	  	 Lender’s Discretion; Rating Agency Review Waiver
	  	 	92	  
		 	10.6	  	 Governing Law
	  	 	93	  
		 	10.7	  	 Modification, Waiver in Writing
	  	 	94	  
		 	10.8	  	 Trial by Jury
	  	 	94	  
		 	10.9	  	 Headings/Schedules
	  	 	95	  
		 	10.10	  	 Severability
	  	 	95	  
		 	10.11	  	 Preferences
	  	 	95	  
		 	10.12	  	 Waiver of Notice
	  	 	95	  
		 	10.13	  	 Remedies of Borrower
	  	 	95	  
		 	10.14	  	 Prior Agreements
	  	 	96	  
		 	10.15	  	 Offsets, Counterclaims and Defenses
	  	 	96	  
		 	10.16	  	 Publicity
	  	 	96	  
		 	10.17	  	 No Usury
	  	 	96	  
		 	10.18	  	 Conflict; Construction of Documents; Reliance
	  	 	97	  
		 	10.19	  	 No Joint Venture or Partnership; No Third Party Beneficiaries
	  	 	97	  
		 	10.20	  	 Spread Maintenance Premium
	  	 	97	  
		 	10.21	  	 Assignments and Participations
	  	 	98	  
		 	10.22	  	 Waiver of Marshalling of Assets
	  	 	98	  
		 	10.23	  	 Joint and Several Liability
	  	 	99	  
		 	10.24	  	 Creation of Security Interest
	  	 	99	  
		 	10.25	  	 Certain Additional Rights of Lender
	  	 	99	  
		 	10.26	  	 Set-Off
	  	 	100	  
		 	10.27	  	 Counterparts
	  	 	100	  
		 	10.28	  	 Negation of Implied Right to Cure Events of Default
	  	 	100	  
		 	10.29	  	 Acknowledgement and Consent to Bail-In of EEA Financial Institutions
	  	 	100	  

  

			
	Schedule 1	    	Required Repairs
	Schedule 2	    	Exceptions to Representations and Warranties
	Schedule 3	    	Release Parcel
	Schedule 4	    	Organization of Borrower
	Schedule 5	    	Definition of Special Purpose Bankruptcy Remote Entity
	Schedule 6	    	Intellectual Property/Websites

  
 v 

 LOAN AGREEMENT 

LOAN AGREEMENT dated as of August 22, 2016 (as the same may be modified, supplemented, amended or otherwise changed, this
“Agreement”) between SPRING STREET HOTEL PROPERTY LLC, a Delaware limited liability company (“Fee Borrower”), SPRING STREET HOTEL OPCO LLC, a Delaware limited liability company
(“Leasehold Borrower”), and LOANCORE CAPITAL CREDIT REIT LLC, a Delaware limited liability company (together with its successors and assigns, “Lender”). 

 

	1.	DEFINITIONS; PRINCIPLES OF CONSTRUCTION 

 1.1 Specific Definitions.
The following terms have the meanings set forth below: 
 “Acceptable Counterparty” shall mean a bank or other
financial institution which has: (i) a long-term unsecured debt rating of “A+” or higher by S&P; (ii) a long-term unsecured debt rating of not less than “A1” by Moody’s; and (iii) if the counterparty is
rated by Fitch, a long-term unsecured debt rating of “A” or higher by Fitch and a short-term unsecured debt rating of not less than “F-1” from Fitch; provided however,
that SMBC Capital Markets, Inc. (with an Acceptable SMBC Credit Support Party as its credit support party) will be an Acceptable Counterparty so long as the rating of its credit support party (provided such credit support party shall be an
Acceptable SMBC Credit Support Party ) is not downgraded, withdrawn or qualified by S&P or Moody’s or Fitch from the long and short term ratings issued by such rating agencies below the lesser of the above rating (as applicable) or its
ratings as of the date hereof. As used herein, an “Acceptable SMBC Credit Support Party” shall mean (a) Sumitomo Mitsui Banking Corporation or a replacement guarantor that meets the foregoing rating requirements and
provides a guaranty on substantially the same form as the guaranty provided by Sumitomo Mitsui Banking Corporation on the date hereof and (b) provided any such credit support party guaranty guaranties all current and future obligations under
the Interest Rate Cap Agreement or Replacement Interest Rate Cap Agreement, as applicable. 

“Affiliate” shall mean, as to any Person (for purposes of this definition, the “Subject
Person”), any other Person: (i) which, directly or indirectly, through one or more intermediaries, Controls, is Controlled by, or is under common Control with, the Subject Person; (ii) which, directly or indirectly,
beneficially owns or holds ten percent (10%) or more of any class of stock or any other ownership interest in the Subject Person; (iii) ten percent (10%) or more of the direct or indirect ownership of which is beneficially owned or
held by the Subject Person; (iv) which is a member of the family (as defined in Section 267(c)(4) of the Code) of the Subject Person or which is a trust or estate, the beneficial owners of which are members of the family (as defined in
Section 267(c)(4) of the Code) of the Subject Person; or (v) which, directly or indirectly, is a general partner, controlling shareholder, managing member, officer, director, trustee or employee of the Subject Person. 

“Approved Capital/FF&E Expenses” shall mean FF&E Expenses and Capital Expenses (including
deposits for materials needed for the work which is the subject of such FF&E Expense and/or Capital Expense which is separately referred to herein as the “Approved Capital/FF&E Expenses Deposits”) incurred by
Borrower, which FF&E Expenses or Capital Expenses shall either be (i) included in the Approved Capital Budget for the current calendar month or (ii) approved by Lender. 

 “Approved Operating Expenses” shall mean during a Cash
Management Period, operating expenses incurred by Borrower which (i) are included in the Approved Operating Budget for the current calendar month, (ii) are for Taxes, Insurance Premiums, electric, gas, oil, water, sewer or other utility
service to the Property, (iii) are Emergency Expenditures, (iv) are required by Franchisor pursuant to the terms of the Franchise Agreement and a failure to comply would result in a default under the Franchise Agreement or (v) are
approved by Lender. 
 “Acceptable Replacement Guarantor” shall mean one or more Persons
that satisfy the criteria set forth in clauses (1) through (4) of the defined term “Qualified Transferees” for whom Lender shall have received a credit check reasonably acceptable to Lender and whose identity, experience,
financial condition and creditworthiness, including net worth and liquidity, is reasonably acceptable to Lender in Lender’s sole discretion and, in each case, (i) either Controls Borrower or owns a direct or indirect interest in Borrower
and (ii) is otherwise acceptable to Lender in all respects. 
 “Available Cash” shall mean, as of
each Payment Date during the continuance of a Cash Management Period, the amount of Rents, if any, remaining in the Cash Management Account after the application of all of the payments required under clauses (i) through (vi) of
Section 3.12(a) hereof. 
 “Bankruptcy Code” shall mean Title 11 of the United States Code
entitled “Bankruptcy”, as amended from time to time, and any successor statute or statutes and all rules and regulations from time to time promulgated thereunder, and any comparable foreign laws relating to bankruptcy, insolvency or
creditors’ rights. 
 “Borrower” shall mean Fee Borrower and Leasehold Borrower;
provided, however, that each reference to “Borrower” hereunder and in the other Loan Documents shall mean each of Fee Borrower and Leasehold Borrower, individually, and both Fee Borrower and Leasehold Borrower, collectively.

 “Business Day” shall mean any day other than a Saturday, Sunday or any day on which
commercial banks in New York, New York are authorized or required to close. 
 “Calculation Date”
shall mean the last day of each calendar quarter during the Term. 
 “Capital Expenses” shall mean expenses that are
capital in nature or required under GAAP to be capitalized. 
 “Cash Management Bank” shall mean Wells
Fargo Bank, National Association, or such other bank or depository selected by Lender. 

  
 2 

 “Cash Management Period” shall mean a period that: 

(i) commences upon the date on which a Default or Event of Default occurs, and ends on the next Payment Date following the date upon which
such Default or Event of Default has been cured and such cure has been accepted by Lender, or such Default or Event of Default has been waived by Lender (provided that in no event shall Lender have any obligation to accept such a cure of, or waive,
any Default or Event of Default), and no other Default or Event of Default is then continuing; 
 (ii) commences upon Lender’s
determination, from and after April 9, 2017 that the Debt Yield is less than eight and one half percent (8.50%) on any Calculation Date, and ends on the next Payment Date following the date upon which Lender has determined that the Debt
Yield equals or exceeds eight and one half percent (8.50%) for the most recent Calculation Date; provided, however (a) no Cash Management Period shall commence solely with respect to the matter described in this clause (ii) in the
event that, within three (3) Business Days after notice from Lender, Borrower prepays a portion of the unpaid Principal to a level such that the Debt Yield is equal to or greater than eight and one half percent (8.50%) and (b) any
Cash Management Period continuing solely with respect to the matter described in this clause (ii) shall be deemed to have ended on the next Payment Date following the date that Borrower prepays a portion of the unpaid Principal to a level such
that the Debt Yield is equal to or greater than eight and one half percent (8.50%), and any such prepayment in clause (a) or (b) shall be subject to the payment of the Spread Maintenance Premium and the Exit Fee; 

(iii) commences upon the occurrence of a PIP Sweep Period, and ends when such PIP Sweep Period has terminated. 

Notwithstanding the foregoing, in no event shall a Cash Management Period be deemed to have ended if (a) the Stated Maturity Date has occurred or
(b) any other Cash Management Period is continuing. 
 “Code” shall mean the Internal Revenue
Code of 1986, as amended and as it may be further amended from time to time, any successor statutes thereto, and applicable U.S. Department of Treasury regulations issued pursuant thereto in temporary or final form. 

“Condor Guarantor” shall mean Condor Hospitality Trust, Inc., a Maryland corporation. 

“Construction Consultant” shall mean one or more third party construction consultants, construction loan
administration or servicing firms or comparable firms as may be retained by Lender, at Borrower’s sole cost and expense, from time to time to monitor the scope and status of any Material Alteration or Restoration. 

“Control” shall mean, with respect to any Person, either (i) ownership directly or indirectly of forty-nine
percent (49%) or more of all equity interests in such Person or (ii) the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, through the ownership of voting
securities, by contract or otherwise, and the terms Controlled, Controlling and Common Control shall have correlative meanings, provided that the mere granting of commercially typical major decision consent rights of a third party
direct or indirect owner of Borrower shall not be deemed to constitute Control of Borrower by such third party owner. 

  
 3 

 “Debt” shall mean the unpaid Principal, all interest
accrued and unpaid thereon, all Exit Fees, any Spread Maintenance Premium, all transaction costs, all late fees and all other sums due to Lender in respect of the Loan or under any Loan Document.  

“Debt Service” shall mean, with respect to any particular period, the scheduled interest payments due
under the Note in such period. 
 “Debt Yield” shall mean, as of any date, the ratio
(expressed as a percentage) calculated by Lender of (i) the Net Operating Income for the twelve (12)-month period ending with the most recently completed calendar month preceding the date of calculation
to (ii) the outstanding Principal as of such date. 
 “Default” shall mean the
occurrence of any event under any Loan Document which, with the giving of notice or passage of time, or both, would be an Event of Default. 

“Default Rate” shall mean a rate per annum equal to the lesser of (i) the maximum rate permitted by
applicable law, or (ii) five percent (5%) above the Interest Rate, compounded monthly. 

“Eligible Account” shall mean a separate and identifiable account from all other funds held by the
holding institution that is either (i) an account or accounts (or subaccounts thereof) (a) maintained with a federal or state-chartered depository institution or trust company which complies with the definition of Eligible Institution or
(b) if a Securitization has occurred, as to which Lender has received a Rating Comfort Letter from each of the applicable Rating Agencies with respect to holding funds in such account, or (ii) a segregated trust account or accounts (or
subaccounts thereof) maintained with the corporate trust department of a federal depository institution or state chartered depository institution subject to regulations regarding fiduciary funds on deposit similar to Title 12 of the Code of Federal
Regulations §9.10(b), having in either case corporate trust powers, acting in its fiduciary capacity, and a combined capital and surplus of at least $50,000,000 and subject to supervision or examination by federal and state authorities. An
Eligible Account will not be evidenced by a certificate of deposit, passbook or other instrument. 
 “Eligible
Institution” shall mean Wells Fargo Bank, National Association (as of the date hereof) or any other depository institution insured by the Federal Deposit Insurance Corporation the short term unsecured debt obligations or commercial
paper of which are rated at least A-1 by S&P, P-1 by Moody’s and F-1+ by Fitch, in the case of accounts in which funds are held for thirty (30) days or less or, in the case of Letters of Credit or accounts in which funds are held for
more than thirty (30) days, the long term unsecured debt obligations of which are rated at least (i) “AA” by S&P, (ii) “AA” and/or “F1+” (for securities) and/or “AAAmmf” (for money market
funds), by Fitch and (iii) “Aa2” by Moody’s; provided, however, for the purposes of the Cash Management Bank, the definition of Eligible Institution shall have the meaning set forth in the Cash
Management Agreement. 

  
 4 

 “Emergency Expenditures” shall mean expenses that are
necessary in order (i) to avoid imminent bodily injury, harm or damage to individuals or the Property, (ii) to avoid the suspension of any necessary service to the Property, (iii) to avoid any right of any insurance carrier to
disclaim coverage under any Policy, but only to the extent that there are insufficient funds in the Insurance Subaccount to pay for such expense, (iv) to comply with the requirements of Franchisor and a failure to comply would result in a
default under the Franchise Agreement or (v) to comply with Legal Requirements (including Environmental Laws), and, in each such case, with respect to which it would be impractical, in Borrower’s reasonable judgment, under the
circumstances, to obtain Lender’s prior written consent; provided that Borrower shall give Lender notice of such Emergency Expenditures as soon as practicable. 

“Employee Plan” shall mean any employee benefit plan (as defined in Section 3(3) of ERISA) subject
to Title IV or Section 302 of ERISA or Section 412 of the Code maintained by Borrower or Guarantor or any of their ERISA Affiliates or to which they contribute or have an obligation to contribute, or with respect to which they have any
liability or obligation, whether through indemnity or otherwise. 
 “Environmental
Report” shall mean that certain Phase I Environmental Site Assessment prepared by GRS Group and dated July 12, 2016. 

“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended from time to time,
and the rules and regulations promulgated thereunder. 
 “ERISA Affiliate” shall mean
any trade or business (whether or not incorporated) which is a member of the same controlled group of corporations or group of trades or businesses under common control with Borrower and/or Guarantor, or is treated as a single employer together with
Borrower and/or Guarantor under Section 414 of the Code or Title IV of ERISA. 
 “ERISA Event”
shall mean (a) the occurrence with respect to an Employee Plan of a reportable event, within the meaning of Section 4043 of ERISA, unless the 30-day notice requirement with respect thereto has been waived by the Pension Benefit Guaranty
Corporation (or any successor) (“PBGC”) or regulation; (b) the application for a minimum funding waiver with respect to an Employee Plan; (c) the termination of an Employee Plan, pursuant to Section 4041(a)(2) of ERISA;
(d) the conditions set forth in Section 430(k) of the Code or Section 303(k)(1)(A) and (B) of ERISA to the creation of a lien upon property or assets or rights to property or assets of the Borrower or any of its ERISA Affiliates
for failure to make a required payment to an Employee Plan are satisfied; (e) the termination of an Employee Plan by the PBGC pursuant to Section 4042 of ERISA, or the appointment of a trustee to administer, an Employee Plan; (f) any
failure by any Employee Plan to satisfy the minimum funding standards, within the meaning of Sections 412 or 430 of the Code or Section 302 of ERISA, whether or not waived; (g) the determination that any Employee Plan is or is expected to
be in “at-risk” status, within the meaning of Section 430 of the Code or Section 303 of ERISA, (h) the withdrawal or partial withdrawal from a Multiemployer Plan or a determination that a Multiemployer Plan is, or is
expected to be “insolvent” (within the meaning of Section 4245 of ERISA), in “reorganization” (within the meaning of Section 4241 of ERISA) or in “endangered” or “critical status” (within the meaning
of Section 432 of the Code or Section 305 of ERISA) or (i) any event or condition which could reasonably be expected to result in liability to Borrower, Guarantor or any ERISA Affiliate with respect to Title IV of ERISA (whether
directly or through indemnity or otherwise.) 

  
 5 

 “Exit Fee” shall mean with respect to any repayment or prepayment of
Principal, an amount equal to one half of one percent (0.50%) of the amount of Principal being repaid or prepaid; provided, however, if the Loan is repaid with the proceeds of a mortgage loan from LoanCore, the Exit Fee
that would otherwise be payable with respect to the portion of the Loan refinanced by LoanCore shall be waived, provided that LoanCore shall have no obligation to offer to provide such financing. 

“FATCA” shall mean Sections 1471 through 1474 of the Code and any regulations or official interpretations
thereof. 
 “FF&E Expenses” shall mean expenses that are for fixtures, furnishings, equipment, furniture, and
other items of tangible personal property now or hereafter located in or on the Property or the Improvements or used in connection with the use, occupancy, operation and maintenance of all or any part of the hotel located on the Property, other than
stocks of food and other supplies held for consumption in normal operation but including appliances, machinery, equipment, signs, artwork, office furnishings and equipment, guest room furnishings, and specialized equipment for kitchens, laundries,
bars, restaurant, public rooms, health and recreational facilities, linens, dishware, all partitions, screens, awnings, shades, blinds, floor coverings, hall and lobby equipment, heating, lighting, plumbing, ventilating, refrigerating, incinerating,
elevators, escalators, air conditioning and communication plants or systems with appurtenant fixtures, vacuum cleaning systems, call or beeper systems, security systems, sprinkler systems and other fire prevention and extinguishing apparatus and
materials; reservation system computer and related equipment; all equipment, manual, mechanical or motorized, for the construction, maintenance, repair and cleaning of, parking areas, walks, underground ways, truck ways, driveways, common areas,
roadways, highways and streets; and the Vehicles (as defined in the USALI). 
 “Fiscal Year” shall mean each twelve
(12) month period commencing on January 1 and ending on December 31 during each year of the Term. 
 “Force
Majeure” shall mean any delay due to an act of God, governmental restriction, enemy action, terrorist act, war, civil commotion, storm, fire, casualty, strike, shortage of supplies or labor, work stoppage or other cause beyond the
reasonable control of Borrower. 
 “Franchise Agreement” shall mean that certain Franchise Agreement on Change of
Ownership, dated August 22, 2016, between Leasehold Borrower and current Franchisor pursuant to which Leasehold Borrower has the right to operate the hotel located on the Property under a name and/or hotel system controlled by such Franchisor.

 “Franchisor” shall mean The Sheraton LLC, a Delaware limited liability company, or any other franchisor engaged
in accordance with the terms and conditions of the Loan Documents. 

  
 6 

 “GAAP” shall mean generally accepted accounting principles
in the United States of America as of the date of the applicable financial report. 
 “Governmental
Authority” shall mean any court, board, agency, commission, office or authority of any nature whatsoever for any governmental unit (federal, state, commonwealth, county, district, municipal, city or otherwise) now or hereafter in
existence. 
 “Guarantor” shall mean Alan Kanders, an individual
(“Kanders”), Raviraj Kiran Dave (“Dave”), an individual, and Condor Guarantor, or any other Person that now or hereafter guarantees any of Borrower’s obligations hereunder or any other Loan
Document. 
 “Hotel Transactions” shall mean, collectively, (i) occupancy
arrangements for customary hotel transactions in the ordinary course of Borrower’s business conducted at the hotel located at the Property, including nightly rentals (or licensing) of individual hotel rooms or suites, banquet room use and food
and beverage services and (ii) informational or guest services which are terminable on one month’s notice or less without cause and without penalty or premium, including co-marketing, promotional services and outsourced services.

 “Interest Period” shall mean (i) the period from the date hereof through the first day
thereafter that is the 8th day of a calendar month (the “Initial Interest Period”) and (ii) each period thereafter from the 9th day of each calendar month through the 8th day of the following calendar month (even if such Interest Period extends beyond the Maturity Date).
Notwithstanding the foregoing, if Lender exercises its right to change the Payment Date to a New Payment Date in accordance with Section 2.2.7 hereof, then from and after such election, each Interest Period shall be the period from the
New Payment Date in each calendar month through the day in the next succeeding calendar month immediately preceding the New Payment Date in such calendar month. 

“Interest Rate” shall mean the LIBOR Rate or, during the continuance of a Prime Rate Period, the Prime
Rate, in each case, subject to Section 2.2.3 hereof (or, when applicable pursuant to this Agreement or any other Loan Document, the Default Rate).  

“Inventory” shall have the definition for same set forth in the UCC, including items which would be entered on a
balance sheet under the line items for “Inventories” or “china, glassware, silver, linen and uniforms” under USALI. 

“JV Agreement” shall mean that certain Limited Liability Company Agreement dated as of July 26, 2016 by and among
TWC Spring Street Hotel LLC (“TWC Member”), TWC Spring Street Hotel Promote LLC and Supertel. 
 “Key
Principal(s)” shall mean Kanders and Dave. 
 “Leases” shall mean all leases and other agreements or
arrangements heretofore or hereafter entered into affecting the use, enjoyment or occupancy of, or the conduct of any activity upon or in, the Property or the Improvements, including any guarantees, extensions, renewals, modifications or amendments
thereof and all additional remainders, reversions and other rights and estates appurtenant thereunder. As used herein and in the other Loan Documents, the term “Leases” shall not include the Operating Lease, service contracts or Hotel
Transactions. 

  
 7 

 “Legal Requirements” shall mean statutes, laws, rules, orders,
regulations, ordinances, judgments, decrees and injunctions of Governmental Authorities (including those regarding fire, health, handicapped access, sanitation, ecological, historic, zoning, environmental protection, wetlands and building laws and
the Americans with Disabilities Act of 1990, Pub. L. No. 89-670, 104 Stat. 327 (1990), as amended, and all regulations promulgated pursuant thereto) affecting Borrower, any Loan Document or all or part of the Property or the construction,
ownership, use, alteration or operation thereof, whether now or hereafter enacted and in force, and all permits, licenses and authorizations and regulations relating thereto, and all covenants, agreements, restrictions and encumbrances contained in
any instrument, either of record or known to Borrower, at any time in force affecting all or part of the Property. 

“LIBOR” shall mean, with respect to any Interest Period, a floating interest rate per annum (expressed
as a percentage per annum rounded upwards, if necessary, to the nearest one sixteenth (1/16th) of one percent (1%)) for deposits in U.S. Dollars for a one (1) month period that
appears on Reuters Screen LIBOR01 Page as of 11:00 a.m., London time, on the related LIBOR Determination Date. If such rate does not appear on Reuters Screen LIBOR01 Page as of 11:00 a.m., London time, on the applicable LIBOR Determination
Date, Lender shall request the principal London office of any four (4) prime banks in the London interbank market selected by Lender to provide such banks’ quotations of the rates at which deposits in U.S. Dollars are offered by such banks
at approximately 11:00 a.m., London time, to prime banks in the London interbank market for a one (1) month period commencing on the first day of the related Interest Period and in a principal amount that is representative for a single
transaction in the relevant market at the relevant time. If at least two (2) such offered quotations are so provided, LIBOR will be the arithmetic mean of such quotations (expressed as a percentage and rounded upwards, if necessary, to the
nearest one sixteenth (1/16th) of one percent (1%)). If fewer than two (2) such quotations are so provided, Lender will request major banks in New York City selected by Lender to
quote such banks’ rates for loans in U.S. Dollars to leading European banks as of approximately 11:00 a.m., New York City time, on the applicable LIBOR Determination Date for a one (1) month period commencing on the first day of the
related Interest Period and in an amount that is representative for a single transaction in the relevant market at the relevant time. If at least two (2) such rates are so provided, LIBOR will be the arithmetic mean of such rates
(expressed as a percentage and rounded upwards, if necessary, to the nearest one sixteenth (1/16th) of one percent (1%)). If fewer than two (2) rates are so provided, then LIBOR
will be LIBOR used to determine the LIBOR rate during the immediately preceding Interest Period. For purposes hereof: (i) “Eurodollar Business Day” shall mean any day other than a Saturday, Sunday or other day on which
banks in the City of London, England are closed for interbank or foreign exchange transactions and (ii) “LIBOR Determination Date” shall mean, (a) with respect to the Initial Interest Period, the date which is two
(2) Eurodollar Business Days prior to the date hereof and (b) with respect to any other Interest Period, the date which is two (2) Eurodollar Business Days prior to the fifteenth
(15th) day of the calendar month occurring during such Interest Period. In no event shall LIBOR be less than one half of one percent (0.50%) per annum (the “LIBOR
Floor”). 
 “LIBOR Rate” shall mean the sum of (i) LIBOR and (ii) the LIBOR
Spread. 

  
 8 

 “LIBOR Spread” shall mean (i) five percent
(5.00%) with respect to the Initial Term and the First Extension Term, (ii) five and one quarter of one percent (5.25%) with respect to the Second Extension Term, and (iii) five and one half of one percent (5.50%) with
respect to the Third Extension Term. 
 “Lien” shall mean any mortgage, deed of trust,
lien (statutory or otherwise), pledge, hypothecation, easement, restrictive covenant, preference, assignment, security interest, PACE Loan or any other encumbrance, charge or transfer of, or any agreement to enter into or create any of the
foregoing, on or affecting all or any part of the Property or any interest therein, or any direct or indirect interest in Borrower or Sole Member, including any conditional sale or other title retention agreement, any financing lease having
substantially the same economic effect as any of the foregoing, the filing of any financing statement, and mechanic’s, materialmen’s and other similar liens and encumbrances. 

“Liquor License Cooperation Agreement” shall mean that certain Cooperation Agreement Regarding Liquor
License, dated as of even date herewith, by Borrower in favor of Lender. 
 “Loan
Documents” shall mean this Agreement and all other documents, agreements and instruments now or hereafter evidencing, securing or delivered to Lender in connection with the Loan, including the following, each of which is dated as of the
date hereof: (i) the Promissory Note or Promissory Notes made by Borrower to Lender in the aggregate principal amount equal to the Loan (the “Note”); (ii) the Fee and Leasehold Deed to Secure Debt, Assignment of
Leases and Rents and Security Agreement made by Borrower, in favor of Lender which covers the Property (the “Mortgage”); (iii) the Assignment of Leases and Rents from Borrower to Lender (the “Assignment of
Leases and Rents”); (iv) the Assignment of Agreements, Licenses, Permits and Contracts from Borrower to Lender; (v) the Deposit Account Control Agreement (the “Clearing Account Agreement”) among
Borrower, Lender, Manager and the Clearing Bank; (vi) the Cash Management Agreement (the “Cash Management Agreement”) among Borrower, Lender and the Cash Management Bank; (vii) the Guaranty of Recourse Obligations
made by Guarantor (the “Guaranty”) for the benefit of Lender; (viii) the Interest Rate Cap Assignment and Security Agreement from Borrower to Lender; (ix) the Consent and Subordination of Manager from Manager to
Lender (“Manager Consent”); and (x) the Liquor License Cooperation Agreement, as each of the foregoing may be (and each of the foregoing defined terms shall refer to such documents as they may be) amended, restated,
replaced, severed, split, supplemented or otherwise modified from time to time (including pursuant to Section 9.2 hereof). 

“LoanCore” shall mean LoanCore Capital Credit REIT LLC, LoanCore Capital, LLC or any of their respective Affiliates.

 “Major Contract” shall mean (i) any management, brokerage or leasing agreement, (ii) any
Hotel Transaction relating to a reservation lasting for more than 60 days that is not cancellable on at least 10 days’ notice without requiring the payment of a termination fee and covering more than 25 rooms, (iii) any cleaning,
maintenance, service or other contract or agreement of any kind (other than Leases) of a material nature (materiality for these purposes to include contracts which extend beyond one year (unless cancelable on thirty (30) days or less 

  
 9 

 
notice without requiring the payment of termination fees or payments of any kind)), in either case, relating to the ownership, leasing, management, use, operation, maintenance, repair or
restoration of the Property, whether written or oral or (iv) any management, brokerage, leasing, cleaning, maintenance, service or other contract or agreement of any kind (other than Leases) that is between Borrower and an Affiliate of
Borrower. 
 “Management Agreement” shall mean that certain Hotel Management Agreement dated as of
August 22, 2016 between Leasehold Borrower and Manager, pursuant to which Manager is to manage the Property, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time in accordance with
Section 5.12 hereof. 
 “Manager” shall mean Boast Hotel Management Company LLC, a
Delaware limited liability company, or any successor, assignee or replacement manager appointed by Borrower in accordance with Section 5.12 hereof. 

“Material Adverse Effect” shall mean a material adverse effect on (i) the Property, (ii) the business,
profits, prospects, management, operations or condition (financial or otherwise) of Borrower, Guarantor, Key Principal or the Property, (iii) the enforceability, validity, perfection or priority of the lien of the Mortgage or the other Loan
Documents, (iv) the ability of Borrower to perform its obligations under the Mortgage or the other Loan Documents, or (v) the ability of Guarantor to perform its obligations under the Guaranty. 

“Material Alteration” shall mean (i) any individual alteration affecting (a) structural
elements of the Property, (b) a roof of the Property (other than surface repairs to portions of the roof as opposed to replacements) or (c) any building system of the Property or (ii) any non-structural alteration the cost of which
exceeds $500,000; provided, however, that in no event shall any of the following constitute a Material Alteration: (a) any Required Repairs, (b) any tenant
improvement work performed pursuant to any Lease existing on the date hereof or entered into hereafter in accordance with the provisions of this Agreement, or (c) alterations performed as part of a Restoration. 

“Maturity Date” shall mean the date on which the final payment of principal of the Note becomes due and
payable as therein provided, whether at the Stated Maturity Date, by declaration of acceleration, or otherwise. 

“Multiemployer Plan” shall mean a multiemployer plan within the meaning of Section 4001(a)(3) of
ERISA which is subject to Title IV of ERISA, for which Borrower, Guarantor or any ERISA Affiliate has any obligation to make contributions or any obligation or liability (whether directly or through indemnity or otherwise). 

“Net Operating Income” for any period, the net operating income of the Property determined by Lender in its sole but
reasonable discretion, giving effect to USALI (to the extent not inconsistent with this definition), and on a cash basis of accounting, after (i) deducting therefrom (without duplication) (a) deposits to (but not withdrawals from) any
reserves required under this Agreement, (b) any Rents from tenants operating under bankruptcy protection or from tenants that are not open for business (i.e., have “gone dark”), and (c) non-recurring extraordinary items of
income, and (ii) making adjustments for market lease vacancies, leasing costs, capital items, FF&E Expenses or 4.0% of the annual Rents) and management fees (which shall be the greater of actual fees or 3.0% of the annual Rents). 

  
 10 

 “Officer’s Certificate” shall mean a certificate
delivered to Lender which is signed by an authorized senior officer or authorized representative of the Person on behalf of whom the certificate is delivered, which officer or representative is most knowledgeable with respect to the subject matter
set forth in the applicable Officer’s Certificate.  
 “Operating Lease” shall mean
that certain Master Lease Agreement dated as of the date hereof between Fee Borrower and Leasehold Borrower. 

“Operations Agreements” shall mean any covenants, restrictions, easements, declarations or agreements of
record relating to the construction, operation or use of the Property, together with all amendments, modifications or supplements thereto. 

“Option Agreement” shall mean that certain Option Agreement between Fee Borrower and DB Hotel Atlanta
LLC, or its permitted successor or assigns (“Release Parcel Purchaser”) dated as of the date hereof. 

“Other Charges” shall mean all ground rents, maintenance charges, impositions other than Taxes, and any
other charges, including vault charges and license fees for the use of vaults, chutes and similar areas adjoining the Property, now or hereafter levied or assessed or imposed against the Property or any part thereof. 

“PACE Loan” shall mean (i) any “Property-Assessed Clean Energy loan” or (ii) any other
indebtedness, without regard to the name given to such indebtedness, which is (a) incurred for improvements to the Property for the purpose of increasing energy efficiency, increasing use of renewable energy sources, resource conservation, or a
combination of the foregoing, and (b) repaid through multi-year assessments against the Property. 
 “Payment
Date” shall mean the 9th day of each calendar month or, upon Lender’s exercise of its right to change the Payment Date in accordance with Section 2.2.7 hereof, the
New Payment Date (in either case, if such day is not a Business Day, the Payment Date shall be the immediately preceding Business Day). The first Payment Date hereunder shall be October 9, 2016. 

“Permitted Encumbrances” shall mean: (i) the Liens created by the Loan Documents; (ii) all
Liens and other matters disclosed in the Title Insurance Policy; (iii) Liens, if any, for Real Estate Taxes or Other Charges not yet due and payable and not delinquent; (iv) any workers’, mechanics’ or other similar Liens on the
Property provided that any such Lien is bonded or discharged within sixty (60) days after Borrower first receives notice of such Lien and (v) such other title and survey exceptions as Lender approves in writing. 

“Permitted Transfers” shall mean: 

(i) a Lease entered into in accordance with the Loan Documents; 

(ii) a Permitted Encumbrance; 

  
 11 

 (iii) a Transfer of the Release Parcel in accordance with the terms of the Option
Agreement; 
 (iv) Hotel Transactions; 

(v) provided that no Default or Event of Default shall then exist, a Transfer of a direct or indirect interest in Sole Member
to any Person provided that: 
 (A) such Transfer shall not (y) cause the transferee (other than Key Principal(s)),
together with its Affiliates, to acquire Control of Borrower or Sole Member or to increase its direct or indirect interest in Borrower or in Sole Member to an amount which equals or exceeds forty-nine percent (49%) or (z) result in
Borrower or Sole Member no longer being Controlled by Key Principal(s); 
 (B) (1) prior to the occurrence of a Condor
Change of Control Event, after giving effect to such Transfer, Key 
Principal(s) shall continue to Control the day to day operations of Borrower and Key Principals shall continue to own (taken together with interests owned by a Key
Principal’s immediate family members, partnerships or limited liability companies Controlled solely by one or more of such family members or trusts established for the benefit of such immediate family member(s)), collectively, at least seven
and one half percent (7.5%) of all equity interests (direct or indirect) of Borrower (except in connection with the dilution of TWC Member’s interests pursuant to Article 9 of the JV Agreement); and (2) after the occurrence of a
Condor Change of Control Event, after giving effect to such Transfer, Condor Guarantor shall continue to Control the day to day operations of Borrower and shall continue to own at least fifty percent (50%) of all equity interests (direct or
indirect) of Borrower; 
 (C) if such Transfer would cause the transferee to increase its direct or indirect interest in
Borrower or in Sole Member to an amount which equals or exceeds ten percent (10%), Lender shall have approved in its reasonable discretion such proposed transferee, which approval shall be based upon Lender’s satisfactory determination as to
the reputable character and creditworthiness of such proposed transferee, as evidenced by credit and background checks performed by Lender and such other financial statements and other information reasonably requested by Lender; 

(D) Borrower shall give Lender notice of such Transfer together with copies of all instruments effecting such Transfer not
less than ten (10) days prior to the date of such Transfer (other than (i) a Transfer by devise or descent or by operation of law upon the death or as a result of the legal incapacity of a natural person of such Person’s interest in
Borrower to the person or persons lawfully entitled thereto or (ii) a Transfer of a direct or indirect interest in SP Spring Hotel LLC and with respect to clause (D)(i) and (D)(ii), Borrower shall deliver written notice to Lender as soon as
practicable thereafter; provided, however, no notice shall be required with respect to this clause (D)(ii) if such Transfer would not cause the transferee, together with its Affiliates and including all prior Transfers, to increase its direct or
indirect interest in Borrower or in Sole Member to an amount which equals or exceeds ten percent (10%)); 

  
 12 

 (E) the legal and financial structure of Borrower and its members and the single
purpose nature and bankruptcy remoteness of Borrower and its members after such Transfer, shall satisfy Lender’s then current applicable underwriting criteria and requirements; or 

(vi) provided that no Default or Event of Default shall then exist, a Transfer of any indirect interest in Borrower related to
or in connection with the estate planning of such transferor to (1) an immediate family member of such interest holder (or to partnerships or limited liability companies Controlled solely by one or more of such family members) or (2) a
trust established for the benefit of such immediate family member, provided that: 
 (A) if such Transfer would cause the
transferee to increase its direct or indirect interest in Borrower to an amount which equals or exceeds ten percent (10%), Lender shall have approved in its reasonable discretion such proposed transferee, which approval shall be based upon
Lender’s satisfactory determination as to the reputable character and creditworthiness of such proposed transferee, as evidenced by credit and background checks performed by Lender and such other financial statements and other information
reasonably requested by Lender; 
 (B) Borrower shall give Lender notice of such Transfer together with copies of all
instruments effecting such Transfer not less than twenty (20) days prior to the date of such Transfer; 
 (C) such
Transfer shall not otherwise result in a change of Control of Borrower or change of the day to day management and operations of the Property; and 

(D) the legal and financial structure of Borrower and its members and the single purpose nature and bankruptcy remoteness of
Borrower and its members after such Transfer, shall satisfy Lender’s then current applicable underwriting criteria and requirements; or 

(vii) The Transfer of direct or indirect interests (whether common stock, preferred stock or otherwise) in Condor Guarantor,
so long as Condor Guarantor at all times (i) remains publicly traded on NASDAQ or any other national securities exchange, and (ii) qualifies as a real estate investment trust under Section 856 of the Internal Revenue Code of 1986, as
amended; or 
 (viii) a Transfer of limited partnership interests in Supertel to any Person provided that: 

  
 13 

 (A) Condor Guarantor at all times shall own (directly or indirectly) all of the
general partnership interests in Supertel and Condor Guarantor shall at all times Control Supertel; 
 (B) if such Transfer
would cause the transferee, together with its Affiliates, to increase its direct or indirect interest in Borrower to an amount which equals or exceeds ten percent (10%), Borrower shall provide Lender with notice of such Transfer together with copies
of all instruments effecting such Transfer not less than ten (10) days prior to the date of such Transfer and prior to such Transfer, Lender shall have received evidence that, or otherwise confirmed that, such transferee has never been indicted
for or convicted of a Patriot Act Offense and is not on any Government List and the Transfer shall not otherwise breach any of the representations or covenants contained herein relating to ERISA, OFAC and Patriot Act matters; 

(C) if such Transfer shall cause the transferee together with its Affiliates to acquire or to increase its direct or indirect
interest in Borrower to an amount which equals or exceeds forty-nine percent (49%), to the extent that Lender determines that the pairings in the most recently delivered non-consolidation opinion with respect to the Loan no longer apply, Borrower
shall deliver to Lender a new non-consolidation opinion in form and substance reasonably satisfactory to Lender and satisfactory to the applicable Rating Agencies; 

(D) such Transfer shall not otherwise result in a change of Control of Borrower or change of the day to day management and
operations of the Property; and 
 (E) the legal and financial structure of Borrower and its members and the single purpose
nature and bankruptcy remoteness of Borrower and its members after such Transfer, shall satisfy Lender’s then current applicable underwriting criteria and requirements; or 

(ix) A change of Control of Borrower pursuant to Section 6.10 or Article 13 of the JV Agreement or a Transfer of a
direct or indirect interest in Borrower between TWC Member and Supertel pursuant to Article 13 of the JV Agreement (any of the foregoing, a “Condor Change of Control Event”), provided that: 

(A) Condor Guarantor shall continue to own at least 50% of all equity interests (direct or indirect) of Borrower and shall
Control the day to day operations of Borrower; 
 (B) The Property shall continue to be managed by the Manager as of the
date hereof or a Qualified Manager shall be appointed in accordance with Section 5.12.2 hereof; 
 (C) the legal
and financial structure of Borrower and its members and the single purpose nature and bankruptcy remoteness of Borrower and its members after such Transfer, shall satisfy Lender’s then current applicable underwriting criteria and requirements;
and 

  
 14 

 (D) Borrower shall give Lender notice of such Transfer together with copies of
all instruments effecting such Transfer not less than ten (10) days prior to the date of such Transfer; or 
 (x) a
Transfer of any direct or indirect interest in Borrower that occurs by devise or bequest or by operation of law upon the death of a natural person that was the holder of such interest, provided that: 

(A) if such Transfer would cause the transferee, together with its Affiliates, to acquire or to increase its direct or
indirect interest in Borrower to an amount which equals or exceeds ten percent (10%) or to acquire direct or indirect Control of Borrower, (x) Borrower shall provide Lender with notice of such Transfer not less than thirty (30) days
after the date of such Transfer and (y) Lender shall have approved in its reasonable discretion such proposed transferee, which approval shall be based upon Lender’s satisfactory determination as to the reputable character and
creditworthiness of such proposed transferee, as evidenced by credit and background checks performed by Lender and such other financial statements and other information reasonably requested by Lender; 

(B) Borrower shall give Lender notice of such Transfer together with copies of all instruments effecting such Transfer not
less than sixty (60) days after the date of such Transfer; 
 (C) the legal and financial structure of Borrower and its
members and the single purpose nature and bankruptcy remoteness of Borrower and its members after such Transfer, shall satisfy Lender’s then current applicable underwriting criteria and requirements; 

(D) if such Transfer results in a change of Control of Borrower to a Person other than (x) a Key Principal (directly or
indirectly) or (y) the estate of Key Principal (during the pendency of the settlement by the estate of Key Principal and if such Transfer occurs as a result of the death of Key Principal) (the “Key Principal Estate”): if
such Transfer occurs (1) prior to the occurrence of a Securitization, such Transfer is approved by Lender in writing within thirty (30) days after any such Transfer, which approval shall not be unreasonably withheld or (2) from and
after a Securitization, Borrower shall deliver a Rating Comfort Letter from each applicable Rating Agency within ninety (90) days after any such Transfer (or such longer time as may reasonably be necessary for Borrower to obtain the Rating
Comfort Letters, provided Borrower is diligently pursuing same); and 
 (E) if such Transfer shall cause (x) a change
of Control of Borrower or (y) the transferee together with its Affiliates to acquire or to increase its direct or indirect interest in Borrower to an amount which equals or exceeds forty-nine 

  
 15 

 
percent (49%), then, to the extent that Lender determines that the pairings in the most recently delivered non-consolidation opinion with respect to the Loan no longer apply or that an additional
pairing(s) is needed to cover the transferee or any other Person not included in the most recently delivered non-consolidation opinion, Borrower shall deliver to Lender a non-consolidation opinion in form and substance reasonably satisfactory to
Lender and the applicable Rating Agencies within thirty (30) days of Lender’s request for such non-consolidation opinion. 
 Notwithstanding
anything to the contrary contained in this definition of “Permitted Transfer”, no Transfer shall be a Permitted Transfer unless such Transfer is made in compliance with the Franchise Agreement. 

“Person” shall mean any individual, corporation, partnership, limited liability company, joint venture,
estate, trust, unincorporated association, any other person or entity, and any federal, state, county or municipal government or any bureau, department or agency thereof and any fiduciary acting in such capacity on behalf of any of the
foregoing. 
 “Physical Conditions Report” shall mean that certain Physical Condition
Assessment, prepared by GRS Group and dated as of July 7, 2016. 
 “PIP” shall mean any property
improvement plan that is issued in connection with any Franchise Agreement. 
 “PIP Costs” shall mean
the anticipated total amount required to complete any PIP, as determined by Lender in its reasonable discretion. 

“PIP Sweep Period” shall (i) commence upon the receipt by Borrower of a notice from Franchisor
which provides that a PIP has been issued for the Property (a “PIP Notice”) and (ii) shall end upon Lender’s determination that funds on deposit in the PIP Reserve Subaccount are expected to be sufficient to pay for
all PIP Work. Notwithstanding the foregoing, a PIP Sweep Period shall not commence if Borrower deposits the PIP Costs into the PIP Reserve Subaccount within five (5) Business Days after Borrower’s receipt of a PIP Notice.

 “Plan” shall mean an employee benefit or other plan established or maintained by Borrower,
Guarantor or any ERISA Affiliate or to which Borrower, Guarantor or any ERISA Affiliate makes or is obligated to make contributions and which is subject to Title IV of ERISA or Section 302 of ERISA or Section 412 of the Code.

 “Pooling and Servicing Agreement” shall mean any pooling and servicing agreement or similar
agreement entered into as a result of a Secondary Market Transaction. 
 “Prime Rate” shall mean the
rate of interest published in The Wall Street Journal from time to time as the “Prime Rate.” If more than one “Prime Rate” is published in The Wall Street Journal for a day, the average of such “Prime Rates” shall be
used, and such average shall be rounded up to the nearest 1/100th of one percent (0.01%). If The Wall Street Journal ceases to publish the “Prime Rate,” Lender shall select an equivalent publication that publishes such “Prime
Rate,” and if such “Prime Rates” are no longer generally published or are limited, regulated or administered by a governmental or quasigovernmental body, then Lender shall select a comparable interest rate index. 

  
 16 

 “Prime Rate Period” shall mean the period commencing on the
expiration of the Interest Period in effect at the time of the delivery of a LIBOR Notice pursuant to Section 2.2.3 and ending on the earlier to occur of the Maturity Date or such date upon which the conditions which gave rise to the
delivery of such LIBOR Notice, shall no longer exist. 
 “Prime Rate Spread” shall mean
the difference (expressed as the number of basis points) between (i) LIBOR plus the LIBOR Spread on the date LIBOR was last applicable to the Loan and (ii) the Prime Rate on the date that LIBOR was last applicable to the Loan;
provided, however, in no event shall such difference be a negative number. 

“Principal” shall mean the unpaid principal balance of the Loan at the time in question. 

“Property” shall mean the parcel of real property and Improvements thereon owned by Borrower and
encumbered by the Mortgage, together with all rights pertaining to such real property and Improvements, and all other collateral for the Loan as more particularly described in the Granting Clauses of the Mortgage and referred to therein as the
Deeded Property. The Property is located in Atlanta, Georgia. 
 “Qualified Manager”
shall mean a property manager of the Property which (i) is a reputable, nationally or regionally recognized hotel management company having at least five (5) years’ experience in the management of similar type hotels in the United
States, (ii) at the time of its engagement as property manager of the Property manages, and for the five (5) year period immediately preceding such engagement managed, at least ten (10) hotels of a size, quality, level of service and
class similar to the Property, consisting of not fewer than 1,000 hotel rooms, and (iii) is not and has not been the subject of a bankruptcy or similar insolvency proceeding. 

“Qualified Transferee” shall mean a transferee for whom, prior to the Transfer, Lender shall have
received evidence that the proposed transferee (1) has never been indicted or convicted of, or pled guilty or no contest to, a felony, (2) has never been indicted or convicted for, or pled guilty or no contest to, a Patriot Act Offense and
is not on any Government List, (3) has never been the subject of a voluntary or involuntary (to the extent the same has not been discharged) bankruptcy proceeding and (4) has no material outstanding judgments or litigations or regulatory
actions continuing or threatened against such proposed transferee or its interests. 
 “Rating
Agency” shall mean, prior to the final Securitization of the Loan (or if a Securitization has not occurred), each of Standard & Poor’s, a division of The McGraw-Hill Companies, Inc. (“S&P”),
Moody’s Investors Service, Inc. (“Moody’s”), Fitch, Inc., a division of Fitch Ratings Ltd. (“Fitch”), DBRS, Inc., Morningstar, Inc., Kroll Bond Rating Agency or any other
nationally-recognized statistical rating organization which has been designated by Lender, and after the final Securitization of the Loan, any of the foregoing that have rated any of the securities issued in connection with the Securitization.

  
 17 

 “Rating Comfort Letter” shall mean a letter issued by each
of the applicable Rating Agencies which confirms that the taking of the action referenced to therein will not result in any qualification, withdrawal or downgrading of any existing ratings of Securities created in a Secondary Market
Transaction. 
 “Regulatory Change” shall mean any change effective after the date of
this Agreement in any statute, treaty, rule, regulation, ordinance, executive order or administrative or judicial precedents or authorities (including Regulation D of the Board of Governors of the Federal Reserve System of the United States (or
any successor)) or the adoption or making after such date of any interpretation, directive or request applying to a class of banks, including any Lender, of or under any statute, treaty, rule, regulation, ordinance, executive order or administrative
or judicial precedents or authorities (whether or not having the force of law and whether or not failure to comply therewith would be unlawful) by any Governmental Authority or monetary authority charged with the interpretation or administration
thereof or compliance by Lender with any request or directive regarding capital adequacy. Notwithstanding anything herein to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or
directives thereunder or issued in connection therewith and (ii) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar
authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Regulatory Change”, regardless of the date enacted, adopted or issued.

 “Release Parcel” shall mean that certain portion of the Property indicated on Schedule 3 hereto,
which may be released pursuant to Section 2.4.2 hereof. 
 “REMIC Trust” shall mean a
“real estate mortgage investment conduit” within the meaning of Section 860D of the Code that holds the Note. 

“Rents” all rents, rent equivalents, moneys payable as damages (including payments by reason of the rejection of a
Lease in a Bankruptcy Proceeding) or in lieu of rent or rent equivalents, royalties (including all oil and gas or other mineral royalties and bonuses), income, fees, receivables, receipts, revenues, deposits (including security, utility and other
deposits), accounts, cash, issues, profits, charges for services rendered, and other payment and consideration of whatever form or nature received by or paid to or for the account of or benefit of Borrower, Manager or any of their agents or
employees from any and all sources arising from or attributable to the Property and the Improvements, including all revenues and credit card receipts collected from guest rooms, restaurants, bars, meeting rooms, banquet rooms and recreational
facilities, parking charges, 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 the Property or rendering of services by Borrower, Manager or any of their agents or employees, or any operator or manager of the hotel or the commercial space located in the Improvements at the Property or acquired from
others (including 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 proceeds, if any, from business interruption or other loss of income insurance. 

  
 18 

 “Restoration Threshold” shall mean an amount equal to $750,000. 

“Routine Hazardous Substances” shall mean Hazardous Substances which are used in connection with the
normal use and operation of the Property for its uses permitted hereunder and in compliance in all material respects and at all times with all Environmental Laws. 

“Servicer” shall mean a servicer selected by Lender to service the Loan, including any “master servicer” or
“special servicer” appointed under the terms of any Pooling and Servicing Agreement. 
 “Sole
Member” shall mean Spring Street Hotel Property II LLC (“Fee Sole Member”), the sole member of Fee Borrower, and Spring Street Hotel OpCo II LLC (“Leasehold Sole Member”), the sole member
of Leasehold Borrower, each a Delaware limited liability company; provided, however, that each reference to “Sole Member” hereunder and in the other Loan Documents shall mean each of Fee Sole Member and Leasehold Sole Member, individually,
and both Fee Sole Member and Leasehold Sole Member, collectively. 
 “Spread Maintenance Date” shall
mean the 18th Payment Date after the closing of the Loan. 

“Spread Maintenance Premium” shall mean with respect to any payment or prepayment of Principal (or
acceleration of the Loan) prior to the Spread Maintenance Date, an amount equal to the product of the following: (i) the amount of such prepayment (or the amount of Principal so accelerated), multiplied by (ii) the sum of (a) the
difference between (A) the Interest Rate and (B) LIBOR plus (b) the positive difference, if any, between (A) the LIBOR Floor minus (B) 0.51244%, multiplied by (iii) a fraction (expressed as a percentage) having a
numerator equal to the number of days from the commencement of the next succeeding Interest Period (which may also be the prepayment date) through and including the end of the Interest Period at the First Extended Maturity Date (whether or not the
extension option is exercised pursuant to Section 2.8 hereof) and a denominator equal to 360. 

“State” shall mean the state in which the Property is located. 

“Stated Maturity Date” shall mean September 9, 2018, as the same may be extended pursuant to
Section 2.8 hereof, and as such date may be changed in accordance with Section 2.2.7 hereof. The period of time from and after the date hereof up to and including the originally scheduled Stated Maturity Date is referred to
herein as the “Initial Term”. 
 “Supertel” shall mean Supertel Limited Partnership, a
Virginia limited partnership. 
 “Survey” shall mean a survey of the Property prepared by a surveyor licensed in the
State and satisfactory to Lender and the company or companies issuing the Title Insurance Policy, and containing a certification of such surveyor satisfactory to Lender. 

  
 19 

 “Taxes” shall mean all (i) real estate taxes, assessments, water
rates or sewer rents, maintenance charges, impositions, vault charges and license fees (“Real Estate Taxes”), or (ii) personal property taxes, in each case, now or hereafter levied or assessed or imposed against all or
part of the Property. In no event shall any PACE Loan be considered a Tax for purposes of this Agreement. 
 “Term”
shall mean the entire term of this Agreement, which shall expire upon repayment in full of the Debt. 
 “Title Insurance
Policy” shall mean the ALTA mortgagee title insurance policy in the form acceptable to Lender issued with respect to the Property and insuring the Lien of the Mortgage. 

“Transfer” shall mean: 

(i) any sale, conveyance, transfer, encumbrance, pledge, hypothecation, lease or assignment, or the entry into any agreement
to sell, convey, transfer, encumber, pledge, hypothecate, lease or assign, whether by law or otherwise, of, on, in or affecting (a) all or part of the Property (including any legal or beneficial direct or indirect interest therein),
(b) any direct or indirect interest in Borrower (including any profit interest), or (c) any direct or indirect interest in Sole Member; 

(ii) entering into or subjecting the Property to a PACE Loan; or 

(iii) any change of Control of Borrower or Sole Member. 

For purposes hereof, a Transfer of an interest in Borrower or Sole Member shall be deemed to include (y) if Borrower or Sole Member or
the controlling shareholder of Borrower or Sole Member is a corporation, the voluntary or involuntary sale, conveyance or transfer of such corporation’s stock (or the stock of any corporation directly or indirectly controlling such corporation
by operation of law or otherwise) or the creation or issuance of new stock in one or a series of transactions by which an aggregate of more than ten percent (10%) of such corporation’s stock shall be vested in a party or parties who are
not now stockholders or any change in the control of such corporation and (z) if Borrower, Sole Member or controlling shareholder of Borrower or Sole Member is a limited or general partnership, joint venture or limited liability company, the
change, removal, resignation or addition of a general partner, managing partner, limited partner, joint venturer or member or the transfer of the partnership interest of any general partner, managing partner or limited partner or the transfer of the
interest of any joint venturer or member. 
 “UCC” shall mean the Uniform Commercial Code as in effect in the State
or the state in which any of the Cash Management System Accounts are located, as the case may be. 
 “USALI” shall
mean the Uniform System of Accounts for the Lodging Industry, current edition. 

  
 20 

 “Welfare Plan” shall mean an employee welfare benefit plan, as defined in
Section 3(1) of ERISA. 
 1.2 Index of Other Definitions. The following terms are defined in the sections or Loan
Documents indicated below: 
 “Acceptable Blanket Policy” -  7.1.2 

“Acceptable Counterparty” - 2.6.1 

“Acceptable SMBC Credit Support Party” - 1.1 (Definition of Acceptable Counterparty) 

“Additional Operating Expense” - 6.3.7(a) 

“Annual Budget” - 6.3.6 

“Applicable Taxes” - 2.2.4 

“Approved Additional Operating Expense” - 6.3.7(a) 

“Approved Annual Budget” - 6.3.6 

“Approved Capital Expense/FF&E Budget” - 6.3.6 

“Approved Operating Budget” - 6.3.6 

“Assignment of Leases and Rents” - 1.1 (Definition of Loan Documents) 

“Award” - 7.3.2 

“Bankruptcy Proceeding” - 4.7 

“Borrower’s Recourse Liabilities” - 10.1 

“Capital/FF&E Expense Reserve Subaccount” - 3.4 

“Cash Collateral Subaccount” - 3.11 

“Cash Management Account” - 3.1 

“Cash Management System Accounts” - 3.14 

“Cash Management Agreement” - 1.1 (Definition of Loan Documents) 

“Casualty” - 7.2.1 

“Casualty/Condemnation Prepayment” - 2.3.2 

“Casualty/Condemnation Subaccount” - 3.9 

“Cause” - Schedule 5 

“Clearing Account” - 3.1 

“Clearing Account Agreement” - 1.1 (Definition of Loan Documents) 

“Clearing Bank” - 3.1 

“Condemnation” - 7.3.1 

“Consumer Price Index” - 7.1.1 

“Delaware Act” - Schedule 5 

“Disclosure Document” - 9.1.2 

“Easements” - 4.14 

“Embargoed Person” - 5.31(c) 

“Environmental Laws” - 4.21 

“Equipment” - Mortgage 

“Eurodollar Business Day” - 1.1 (Definition of LIBOR) 

“Event of Default” - 8.1 

“Exchange Act” - 9.1.2 

“Extension Period” -  2.8 

“First Extended Maturity Date” - 2.8 

“First Extension Term” - 2.8 

“Fitch” - 1.1 (Definition of Rating Agency) 

  
 21 

 “Government Lists” - 5.31 

“Guaranty” - 1.1 (Definition of Loan Documents) 

“Hazardous Substances” -  4.21 

“Improvements” - Mortgage 

“Indemnified Liabilities” - 5.30 

“Indemnified Party” - 5.30 

“Independent Director” - Schedule 5 

“Initial Interest Period” - 1.1 (Definition of Interest Period) 

“Initial Term”  -  1.1 (Definition of Stated Maturity Date) 

“Insurance Premiums” - 7.1.2 

“Insurance Subaccount” - 3.4 

“Insured Casualty” - 7.2.2 

“Intellectual Property” - 4.28 

“Interest Rate Protection Agreement” - 2.6.1 

“Issuer” - 9.1.3 

“Late Payment Charge” - 2.5.3 

“Lender Group” - 9.1.3 

“Lender’s Consultant” - 5.8.1 

“Liabilities” - 9.1.3 

“LIBOR Determination Date” - 1.1 (Definition of LIBOR) 

“LIBOR Notice” - 2.2.3 

“Licenses” - 4.11 

“Loan” - 2.1  

“Manager Consent” - 1.1 (Definition of Loan Documents) 

“Moody’s” - 1.1 (Definition of Rating Agency) 

“Mortgage” - 1.1 (Definition of Loan Documents) 

“Nationally Recognized Service Company” - Schedule 5 

“New Payment Date” - 2.2.7 

“Note” - 1.1 (Definition of Loan Documents) 

“Notice” - 6.1 

“O & M Program” - 5.8.3 

“OFAC” - 5.31 

“Operating Expense Subaccount” - 3.6 

“Patriot Act” - 5.31 

“Patriot Act Offense” - 5.31 

“Permitted Equipment Financing” - 5.22 

“Permitted Indebtedness” - 5.22 

“Permitted Investments” - Cash Management Agreement 

“PIP Funds” - 3.6 

“PIP Reserve Subaccount” - 3.6 

“PIP Work” - 3.6 

“Policies” - 7.1.2 

“Proceeds” - 7.2.2 

“Provided Information” - 9.1.1 

“Qualified Carrier” - 7.1.1 

“Real Estate Taxes” - 1.1 (Definition of Taxes) 

  
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 “Register” - 10.21(b) 

“Registration Statement” - 9.1.3 

“Remaining Property” - 2.4.2  

“Remedial Work” - 5.8.2 

“Rent Roll” - 4.16 

“Required Records” - 6.3.9 

“Required Repairs” - 3.2.1 

“Required Repairs Subaccount” - 3.2.2 

“Restoration” - 7.4.1 

“Review Waiver” - 10.5 

“S&P” - 1.1 (Definition of Rating Agency) 

“Second Extended Maturity Date” - 2.8 

“Second Extension Term” - 2.8 

“Secondary Market Transaction” - 9.1.1 

“Securities” - 9.1.1 

“Securities Act” - 9.1.2 

“Securitization” - 9.1.1 

“Security Deposit Subaccount” - 3.10 

“Servicing Agreement” - 10.3 

“Significant Casualty” - 7.2.2 

“Single Member Bankruptcy Remote LLC” - Schedule 5 

“Special Member”- Schedule 5 

“Special Purpose Bankruptcy Remote Entity” - 5.13 

“Springing Recourse Event” - 10.1 

“Subaccounts” - 3.1 

“Subject Person” - 1.1 (Definition of Affiliate) 

“Tax Subaccount” - 3.3 

“Third Extended Maturity Date” - 2.8 

“Third Extension Term”  -  2.8 

“Toxic Mold” - 4.21 

“Underwriter Group” - 9.1.3 

“Underwriters” - 9.1.3 

1.3 Principles of Construction. Unless otherwise specified, (i) all references to sections and schedules are to those in
this Agreement, (ii) the words “hereof,” “herein” and “hereunder” and words of similar import refer to this Agreement as a whole and not to any particular provision, (iii) all definitions are equally
applicable to the singular and plural forms of the terms defined, (iv) the word “including” means “including but not limited to,” and (v) accounting terms not specifically defined herein shall be construed in accordance
with GAAP. 
  

	2.	GENERAL LOAN TERMS 

 2.1 The Loan. Subject to and upon the terms
and conditions set forth herein, Lender is making a loan (the “Loan”) to Borrower on the date hereof, in the original principal amount of $33,750,000, which shall mature on the Stated Maturity Date. Borrower acknowledges
receipt of the Loan, the proceeds of which are being and shall be used to (i) acquire the Property, 

  
 23 

 
(ii) fund certain of the Subaccounts, and (iii) pay transaction costs. Any excess proceeds may be used for any lawful purpose. Borrower shall receive only one borrowing hereunder in
respect of the Loan and no amount repaid in respect of the Loan may be reborrowed. The Loan shall be evidenced by the Note and shall be repaid in accordance with the terms of this Agreement, the Note and the other Loan Documents. 

2.2 Interest; Monthly Payments. 

2.2.1 Generally. From and after the date hereof, interest on the unpaid Principal shall accrue at the Interest Rate and be due
and payable as hereinafter provided. On the date hereof, Borrower shall pay interest on the unpaid Principal at the Interest Rate from the date hereof through and including September 8, 2016. On October 9, 2016 and each Payment Date
thereafter through and including the Maturity Date, Borrower shall pay interest on the unpaid Principal which has accrued through the last day of the Interest Period immediately preceding such Payment Date. All accrued and unpaid interest and unpaid
Principal shall be due and payable on the Maturity Date. If the Loan is repaid on any date other than on a Payment Date (whether prior to or after the Stated Maturity Date), Borrower shall also pay interest that would have accrued on such repaid
Principal at the Interest Rate through and including the last day of the Interest Period in which such payment is made. 
 2.2.2
Default Rate. After the occurrence and during the continuance of an Event of Default, the entire unpaid Debt shall bear interest at the Default Rate, calculated from the date such payment was due or such underlying Default shall have
occurred without regard to any grace or cure periods contained herein, and shall be payable upon demand from time to time, to the extent permitted by applicable law. 

2.2.3 Unavailability or Illegality of LIBOR. If, at any time, Lender determines (which determination shall be conclusive and
binding upon Borrower absent manifest error) that (a) Dollar deposits in an amount approximately equal to the then outstanding principal amount of the Loan are not generally available at such time in the London interbank Eurodollar market for
deposits in Eurodollars, (b) reasonable means do not exist for ascertaining LIBOR, (c) the LIBOR Rate would be in excess of the maximum interest rate that Borrower may by law pay or (d) it shall become illegal for Lender to maintain
the Loan on the basis of the LIBOR Rate, Lender shall promptly give notice of such fact to Borrower together with a reasonable explanation of such determination (a “LIBOR Notice”), and upon and from the expiration of the
then-current Interest Period, the Interest Rate shall be the rate equal to Prime Rate plus the Prime Rate Spread until the Maturity Date or such earlier date that the conditions referred to in this Section 2.2.3 no longer exist (as
determined by Lender, Lender agreeing to give prompt notice to Borrower if such conditions no longer exist). 
 2.2.4 Taxes.

 (a) Any and all payments by Borrower hereunder and under the other Loan Documents shall be made free and clear of and without deduction
for any and all present or future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities with respect thereto, excluding taxes imposed on Lender’s income, and franchise taxes imposed on Lender by the law or regulation
of any Governmental Authority (all such non-excluded taxes, levies, 

  
 24 

 
imposts, deductions, charges, withholdings and liabilities being hereinafter referred to in this Section 2.2.4 as “Applicable Taxes”). If Borrower shall be
required by law to deduct any Applicable Taxes from or in respect of any sum payable hereunder to Lender, the following shall apply: (i) the sum payable shall be increased as may be necessary so that after making all required deductions
(including deductions applicable to additional sums payable under this Section 2.2.4), Lender receives an amount equal to the sum it would have received had no such deductions been made; (ii) Borrower shall make such deductions; and
(iii) Borrower shall pay the full amount deducted to the relevant taxation authority or other authority in accordance with applicable law. Payments pursuant to this Section 2.2.4 shall be made within ten (10) days after the
date Lender makes written demand therefor. 
 (b) Prior to the date that any lender organized under the laws of a jurisdiction outside the
United States of America becomes a party hereto, such lender shall deliver to Borrower such certificates, documents or other evidence, as required by the IRS Code or Treasury Regulations issued pursuant thereto (including Internal Revenue Service
Forms W-8ECI and W-8BEN, as applicable, or appropriate successor forms), properly completed, currently effective and duly executed by such lender establishing that payments to it the Loan Documents are (i) not subject to United States
federal backup withholding tax and (ii) not subject to United States Federal withholding tax under the Code. Each such lender shall (A) deliver further copies of such forms or other appropriate certifications on or before the date that any
such forms expire or become obsolete and after the occurrence of any event requiring a change in the most recent form delivered to Borrower and (B) obtain such extensions of the time for filing, and renew such forms and certifications thereof,
as may be reasonably requested by Borrower. If a payment made to a lender under or in respect of this Agreement or any other Loan Document would be subject to United States federal withholding tax imposed by FATCA and such lender fails to comply
with the applicable reporting requirements of FATCA, such lender shall deliver (y) a certification signed by the chief financial officer, principal accounting officer, treasurer or controller, and (z) other documentation reasonably
requested by Borrower sufficient for Borrower to comply with its obligations under FATCA and to determine that such lender has complied with such applicable reporting requirements. Borrower shall not be required to pay any amount pursuant to
Section 2.2.4(a) hereof to any lender that is organized under the laws of a jurisdiction outside of the United States of America if such lender fails to comply with the requirements of this Section 2.2.4(b). Borrower will not
be required to pay any additional amounts in respect of United States federal income tax pursuant to Section 2.2.4(a) hereof to any lender if the obligation to pay such additional amounts would not have arisen but for a failure by lender
to comply with its obligations under this Section 2.2.4(b). 
 2.2.5 Change in Law; Additional Costs. If any
Regulatory Change or any other change in the interpretation or application of any requirement of law, or compliance by Lender with any request or directive (whether or not having the force of law) hereafter issued from any central bank or other
Governmental Authority shall hereafter: 
 (a) impose, modify or hold applicable any reserve, special deposit, compulsory loan or similar
requirement against assets held by, or deposits or other liabilities in or for the account of, advances or loans by, or other credit extended by, or any other acquisition of funds by, any office of Lender which is not otherwise included in the
determination of LIBOR hereunder; 

  
 25 

 (b) have the effect of reducing the rate of return on Lender’s capital as a consequence of
its obligations hereunder to a level below that which Lender could have achieved but for such adoption, change or compliance (taking into consideration Lender’s policies with respect to capital adequacy) by any amount deemed by Lender to be
material; or 
 (c) impose on Lender any other condition and the result of any of the foregoing is to increase the cost to Lender of making,
renewing or maintaining loans or extensions of credit or to reduce any amount receivable hereunder; 
 then, in any such case, Borrower shall promptly pay
Lender, upon demand, any additional amounts necessary to compensate Lender for such additional cost or reduced amount receivable which Lender deems to be material as reasonably determined by Lender, provided that such demand by Lender shall apply to
all loans similarly affected by such change. Payments pursuant to this Section 2.2.5 shall be made within ten (10) days after the date Lender makes written demand therefor. Borrower’s obligations under this
Section 2.2.5 shall survive the payment of the Debt for a period of three (3) months. 
 2.2.6 Breakage
Indemnity. Borrower shall indemnify Lender against any loss or expense which Lender may actually sustain or incur in liquidating or redeploying deposits from third parties acquired to effect or maintain the Loan or any part thereof as a
consequence of (i) any payment or prepayment of the Loan or any portion thereof made on a date other than a Payment Date, (ii) any payment or prepayment of the Loan or any portion thereof made on a date that is a Payment Date if Borrower
did not give the prior written notice of such prepayment required pursuant to the terms of this Agreement, (iii) any default in payment or prepayment of the Principal or any part thereof or interest accrued thereon, as and when due and payable
(at the date thereof or otherwise, and whether by acceleration or otherwise) and/or (iv) the occurrence of a Prime Rate Period. Lender shall deliver to Borrower a statement for any such sums which it is entitled to receive pursuant to this
Section 2.2.6, which statement shall be binding and conclusive absent manifest error. Borrower’s obligations under this Section 2.2.6 are in addition to Borrower’s obligations to pay any Exit Fee and Spread
Maintenance Premium applicable to a payment or prepayment of Principal and shall survive the payment of the Debt. 
 2.2.7 New Payment
Date. Lender shall have the right, to be exercised not more than once during the term of the Loan, to change the Payment Date to a date other than the ninth (9th) day of each month,
but such date shall not be earlier than the seventh (7th) day of each month (a “New Payment Date”), on thirty (30) days’ written notice to Borrower;
provided, however, that any such change in the Payment Date: (a) shall not modify the amount of regularly scheduled monthly principal and interest payments, except that the first payment of principal and interest
payable on the New Payment Date shall be accompanied by interest at the interest rate herein provided for the period from the Payment Date in the month in which the New Payment Date first occurs to the New Payment Date, and (b) shall change the
Stated Maturity Date to the New Payment Date occurring in the month set forth in the definition of Stated Maturity Date. 
 2.3 Loan
Repayment. 
 2.3.1 Repayment. Borrower shall pay to Lender on the Maturity Date the entire outstanding principal
balance of the Loan, all accrued and unpaid interest and all other 

  
 26 

 
amounts due and owing under the Loan Documents, including all interest that would accrue on the outstanding principal balance of the Loan through and including the end of the Interest Period in
which the Maturity Date occurs (even if such Interest Period extends beyond the Maturity Date). Borrower shall have no right to prepay all or any portion of the Principal except in accordance with Sections 2.3.2 and 2.3.3 hereof.
Except during the continuance of an Event of Default, all proceeds of any repayment, including any prepayments of the Loan, shall be applied by Lender as follows in the following order of priority: First, accrued and unpaid interest at the
Interest Rate; Second, to Principal; and Third, to the Exit Fee and any other amounts then due and owing under the Loan Documents, including the Spread Maintenance Premium (if such repayment or prepayment occurs prior to the Spread
Maintenance Date). If prior to the Stated Maturity Date the Debt is accelerated by reason of an Event of Default, then Lender shall be entitled to receive, in addition to the unpaid Principal and accrued interest and other sums due under the Loan
Documents, an amount equal to the Spread Maintenance Premium and Exit Fee applicable to such Principal so accelerated. During the continuance of an Event of Default, all proceeds of repayment, including any payment or recovery on the Property
(whether through foreclosure, deed-in-lieu of foreclosure, or otherwise) shall, unless otherwise provided in the Loan Documents, be applied in such order and in such manner as Lender shall elect. 

2.3.2 Mandatory Prepayments. The Loan is subject to mandatory prepayment in certain instances of Insured Casualty or
Condemnation (each a “Casualty/Condemnation Prepayment”), in the manner and to the extent set forth in Section 7.4.2 hereof. Each Casualty/Condemnation Prepayment, after deducting Lender’s out-of-pocket
unaffiliated third party costs and expenses (including reasonable attorneys’ fees and expenses) in connection with the settlement or collection of the Proceeds or Award, shall be applied in the same manner as repayments under
Section 2.3.1 hereof, and if such Casualty/Condemnation Prepayment is made on any date other than a Payment Date, then such Casualty/Condemnation Prepayment shall include interest that would have accrued on the Principal prepaid through
and including the last day of the Interest Period in which such payment is made. Provided that no Event of Default is continuing, any such mandatory prepayment under this Section 2.3.2 shall be without the payment of the Spread
Maintenance Premium, but subject to the payment of the Exit Fee. Notwithstanding anything to the contrary contained herein, each Casualty/Condemnation Prepayment shall be applied in inverse order of maturity and shall not extend or postpone the due
dates of the monthly installments due under the Note or this Agreement, or change the amounts of such installments. 
 2.3.3 Optional
Prepayments. Provided no Event of Default has occurred and is continuing, Borrower shall have the right to prepay the Loan in whole (but not in part) on any Payment Date provided that Borrower gives Lender at least thirty (30) days
prior written notice thereof and such prepayment is accompanied by (a) the Spread Maintenance Premium applicable thereto (if such prepayment occurs prior to the Spread Maintenance Date) and (b) the Exit Fee applicable thereto. If any such
prepayment is not made on a Payment Date, Borrower shall also pay interest that would have accrued on such prepaid Principal through and including the last day of the Interest Period in which such payment is made. 

2.3.4 Prepayments; Generally. Notwithstanding anything to the contrary contained in this Agreement or any other Loan Document
(a) no prepayment shall be permitted 

  
 27 

 
on any date during the period commencing on the first calendar day immediately following a Payment Date to, but not including, the LIBOR Determination Date in such calendar month, unless
consented to by Lender, (b) regardless of whether any prepayment is made on a Payment Date or a date that is not a Payment Date (but subject to the restrictions set forth in foregoing clause (a) and any other prepayment restrictions
and conditions set forth in the Loan Documents), in connection with such prepayment Borrower shall pay to Lender, simultaneously with such prepayment, all interest on the principal balance of the Loan then being prepaid which would have accrued
through and including the last day of such Interest Period then in effect notwithstanding that such Interest Period extends beyond the prepayment date and (c) if any prepayment is made on or after the LIBOR Determination Date in any calendar
month and prior to the first day of the Interest Period that commences in such calendar month, Borrower shall also pay to Lender in connection with such prepayment all interest on the Principal then being prepaid which would have accrued through the
end of the next succeeding Interest Period. Any prepayment received by Lender on a date other than a Payment Date shall be held by Lender as collateral security for the Loan and shall be applied to the Debt on the next Payment Date. 

2.4 Release of Property. 

2.4.1 Release Upon Payment in Full. Lender shall, upon the written request and at the expense of Borrower, upon payment in full
of the Debt in accordance herewith, release or, if requested by Borrower, assign to Borrower’s designee (without any representation or warranty by and without any recourse against Lender whatsoever) the Lien of the Loan Documents if not
theretofore released. In connection with the release or assignment of the Lien, Borrower shall submit to Lender, not less than thirty (30) days prior to the date of repayment (or such shorter time as is acceptable to Lender), a release or
assignment of Lien (and related Loan Documents) for execution by Lender. Such release or assignment shall be in a form appropriate in the jurisdiction in which the Property is located and contain standard provisions protecting the rights of the
releasing lender. In addition, Borrower shall provide all other documentation Lender reasonably requires to be delivered by Borrower in connection with such release, together with an Officer’s Certificate certifying that such documentation
(a) is in compliance with all Legal Requirements, and (b) will effect such release in accordance with the terms of this Agreement. Borrower shall pay all costs, taxes and expenses associated with the release or assignment of the Lien of
the Mortgage, including Lender’s reasonable attorneys’ fees. 
 2.4.2 Release of Release Parcel On any Payment Date,
Borrower may obtain the release of the Release Parcel from the Lien of the Mortgage (and related Loan Documents) solely in connection with the exercise of the purchase option by Release Parcel Purchaser pursuant to and in accordance with the Option
Agreement, provided each of the following conditions are satisfied: 
 (a) After giving effect to the release, Borrower shall
continue to be a Special Purpose bankruptcy Remote Entity; 
 (b) The Release Parcel is a legally subdivided parcel from the Property and is
on a separate tax lot from the Property or is subject to a condominium regime (and Lender shall reasonably cooperate in such separation in anticipation of or in connection with such release); 

  
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 (c) The conveyance of the Release Parcel does not (1) violate the Option Agreement,
(2) cause any portion of the portion of the Property continuing to be subject to the Lien of the Loan Documents after such release (the “Remaining Property”) to be in violation of any Legal Requirements, (3) create
any Liens on the Remaining Property, except for utility access, parking and other easements necessary for infrastructure that benefit or are necessary for the Release Parcel or (4) violate the terms of any document or instrument relating to the
Property, including any Lease or any Permitted Encumbrance; 
 (d) The Purchase Price delivered to Fee Borrower by Release Parcel Purchaser
shall be retained by Fee Borrower, unless a Cash Management Period is continuing, in which event such funds shall be applied in accordance with Section 3.12(a) hereof; 

(e) Borrower shall submit to Lender, not less than ten (10) days prior to the date of such release: 

(i) the proposed form of partial release of Lien documentation for the Release Parcel (for execution by Lender) in a form
appropriate in the State and satisfactory to Lender in its reasonable discretion; 
 (ii) unless such an easement already
exists of record, and provided that there are shared facilities, access or parking, a proposed form of easement agreement(s) or similar agreement(s) between Borrower and the transferee of the Release Parcel, in form and substance satisfactory to
Lender in its reasonable discretion, pursuant to which Borrower shall receive and grant such easements, and the right to enforce such restrictive covenants, over the Release Parcel and the Remaining Property that are reasonably required for the
continued use and operation of the Remaining Property and Release Parcel; 
 (iii) an updated zoning report or other
evidence reasonably satisfactory to Lender that (1) the Release Parcel and the Remaining Property constitute separate and distinct tax lots, (2) the Remaining Property complies with all zoning laws and all other Legal Requirements
(including parking requirements), (3) all of the Licenses, including all of the then existing certificates of occupancy, with respect to the Remaining Property shall remain in full force and effect after the conveyance of the Release Parcel and
(4) from and after the date of the release, no portion of the Remaining Property shall with respect to any contractual requirement or Legal Requirement (including zoning approvals, building code violations and parking requirements) be
materially adversely affected in any manner by any contractual requirement or Legal Requirement affecting the Release Parcel to be released or, unless covered by the easement or similar agreement(s) referred to in subclause (g)(ii) above
(including, the CCE&R Agreement referenced in Section 2.10 of the Option Agreement), otherwise be dependent on or otherwise linked or connected to the Release Parcel; and 

(iv) an Officer’s Certificate certifying that such documentation (A) is in compliance with all Legal Requirements,
and (B) is in compliance with all requirements of the Loan Documents; 

  
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 (f) Borrower shall deliver to Lender (i) concurrently with such release, fully executed
copies of all transfer and easement or other documents related to such release (including those required pursuant to clause (f) above) and an original of the estoppel required pursuant to subclause (f)(iv) above and (ii) following
recordation of any of such documents, copies of such recorded documents; 
 (g) Borrower and Guarantor shall execute and deliver such
documents as Lender may reasonably request to confirm the continued validity of the Loan Documents and the Liens thereof relative to the Remaining Property; and 

(h) Borrowers shall have paid to Lender all out-of-pocket unaffiliated third party costs and expenses (including reasonable attorneys’
fees) incurred by Lender in connection with such release of the Release Parcel from the Lien of the Loan Documents. 
 2.5
Payments and Computations. 
 2.5.1 Making of Payments. Each payment by Borrower shall be made in funds settled
through the New York Clearing House Interbank Payments System or other funds immediately available to Lender by 11:00 a.m., New York City time, on the date such payment is due, to Lender by deposit to such account as Lender may designate by written
notice to Borrower. Whenever any such payment shall be stated to be due on a day that is not a Business Day, such payment shall be made on the immediately preceding Business Day (notwithstanding such adjustment of due dates, Borrower shall not be
entitled to any deduction of interest due under this Agreement, the Note or any of the other Loan Documents). All such payments shall be made irrespective of, and without any deduction, set-off or counterclaim whatsoever and are payable without
relief from valuation and appraisement laws and with all costs and charges incurred in the collection or enforcement thereof, including reasonable attorneys’ fees and court costs. 

2.5.2 Computations. Interest payable under the Loan Documents shall be computed on the basis of the actual number of days
elapsed over a 360-day year. 
 2.5.3 Late Payment Charge. If any Principal, interest or other sum due under any Loan Document
is not paid by Borrower on the date on which it is due (other than the balloon payment of Principal due on the Maturity Date or upon acceleration of the Loan), Borrower shall pay to Lender upon demand an amount equal to the lesser of five percent
(5%) of such unpaid sum or the maximum amount permitted by applicable law (the “Late Payment Charge”), in order to defray the expense incurred by Lender in handling and processing such delinquent payment and to
compensate Lender for the loss of the use of such delinquent payment; provided, however, notwithstanding the foregoing, Lender agrees to give a one-time notice to Borrower with respect to the first such failure and the Late Payment Charge
shall not apply until five (5) days after delivery of such notice (and no further notices shall be required during the term with respect to any subsequent failure). Such amount shall be secured by the Loan Documents. 

  
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 2.6 Interest Rate Protection Agreements. 

2.6.1 Interest Rate Protection Agreement. As of the date hereof, Borrower has entered into, made all payments required under,
and satisfied all conditions precedent to the effectiveness of an interest rate protection agreement that satisfies all of the following conditions (such interest rate protection agreement together with (i) any extension thereof or
(ii) any other interest rate protection agreement entered into pursuant to Section 2.8 hereof, being referred to herein as the “Interest Rate Protection Agreement”): 

(a) the Interest Rate Protection Agreement (i) is with an Acceptable Counterparty, (ii) has a term ending no earlier than the Stated
Maturity Date, (iii) is an interest rate cap in respect of a notional amount not less than the maximum principal amount of the Loan that shall have the effect of capping LIBOR at three percent (3.00%) per annum and (iv) provides that
the only obligation of Borrower thereunder is the making of a single payment upon the execution and delivery thereof. 
 (b) Borrower’s
interest in such Interest Rate Protection Agreement has been assigned to Lender pursuant to documentation satisfactory to Lender in form and substance, and the counterparty to such Interest Rate Protection Agreement has executed and delivered to
Lender an acknowledgment of such assignment, which acknowledgment includes such counterparty’s agreement to pay directly into the Clearing Account all sums payable by such counterparty pursuant to the Interest Rate Protection Agreement and
shall otherwise be satisfactory to Lender in form and substance. 
 (c) In connection with an Interest Rate Protection Agreement, Borrower
shall obtain and deliver to Lender an opinion of counsel from counsel (in-house or independent) for the issuer of the Interest Rate Protection Agreement (upon which Lender and its successors and assigns may rely) which shall provide in relevant
part, that: (i) the issuer is duly organized, validly existing, and in good standing under the laws of its jurisdiction of incorporation and has the organizational power and authority to execute and deliver, and to perform its obligations
under, the Interest Rate Protection Agreement; (ii) the execution and delivery of the Interest Rate Protection Agreement by the issuer, and any other agreement which the issuer has executed and delivered pursuant thereto, and the performance of
its obligations thereunder have been and remain duly authorized by all necessary action and do not contravene any provision of its certificate of incorporation or by-laws (or equivalent organizational documents) or any law, regulation or contractual
restriction binding on or affecting it or its property; (iii) all consents, authorizations and approvals required for the execution and delivery by the issuer of the Interest Rate Protection Agreement, and any other agreement which the issuer
has executed and delivered pursuant thereto, and the performance of its obligations thereunder have been obtained and remain in full force and effect, all conditions thereof have been duly complied with, and no other action by, and no notice to or
filing with any Governmental Authority or regulatory body is required for such execution, delivery or performance; and (iv) the Interest Rate Protection Agreement, and any other agreement which the issuer has executed and delivered pursuant
thereto, has been duly executed and delivered by the issuer and constitutes the legal, valid and binding obligation of the issuer, enforceable against the issuer in accordance with its terms, subject to applicable bankruptcy, insolvency and similar
laws affecting creditors’ rights generally, and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law). 

  
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 (d) In the event of any downgrade, withdrawal or qualification of the rating of the issuer of the
Interest Rate Protection Agreement such that it ceases to qualify as an “Acceptable Counterparty”, Borrower shall either (i) replace (or cause the cap provider to replace) the Interest Rate Protection Agreement with a replacement
Interest Rate Protection Agreement from an Acceptable Counterparty (with terms identical to the Interest Rate Protection Agreement being replaced, or otherwise approved by Lender in its reasonable discretion and the Rating Agencies) or (ii) if
a guaranty was delivered in connection with the Interest Rate Protection Agreement from an Acceptable Counterparty at closing, cause the issuer to provide a replacement guaranty of its obligations under the Interest Rate Protection Agreement from
another Acceptable Counterparty not later than thirty (30) days following receipt of notice from Lender or the Servicer of such downgrade, withdrawal or qualification, unless within such period the issuer is deemed to again be an Acceptable
Counterparty. 
 2.6.2 Execution of Documents. Borrower shall promptly execute and deliver to the counterparty of the Interest
Rate Protection Agreement such confirmations and agreements as may be requested by such counterparty in connection with such Interest Rate Protection Agreement. 

2.6.3 No Obligation of Lender. Borrower agrees that Lender shall not have any obligation, duty or responsibility to Borrower or
any other Person by reason of, or in connection with, any Interest Rate Protection Agreement (including any duty to provide or arrange any Interest Rate Protection Agreement, to consent to any mortgage or pledge of the Property or any portion
thereof as security for Borrower’s performance of its obligations under any Interest Rate Protection Agreement, or to provide any credit or financial support for the obligations of Borrower or any other Person thereunder or with respect
thereto). No Interest Rate Protection Agreement shall alter, impair, restrict, limit or modify in any respect the obligation of Borrower to pay interest on the Loan as and when the same becomes due and payable in accordance with the provisions of
the Loan Documents. 
 2.6.4 Receipts from Interest Rate Protection Agreements. All payments made by the counterparty to the
Interest Rate Protection Agreement shall be deposited into the Clearing Account and applied in the same manner as Rents are applied under Section 3.15 hereof. 

2.6.5 Failure to Provide Interest Rate Protection Agreement. If Borrower breaches its obligation to enter into an Interest Rate
Protection Agreement (including any replacement thereof) to the extent required hereunder, Lender may, but shall have no obligation to, at Borrower’s sole cost and expense and on Borrower’s behalf, enter into an Interest Rate Protection
Agreement as so required. Lender is hereby irrevocably appointed the true and lawful attorney of Borrower (coupled with an interest), in its name and stead, to execute such an Interest Rate Protection Agreement and all necessary documents ancillary
thereto, and for that purpose Lender may execute all necessary agreements and instruments, Borrower hereby ratifying and confirming all that its said attorney shall lawfully do by virtue hereof. All fees, costs and expenses incurred by Lender
(including reasonable attorneys’ fees), together with interest thereon at the Default Rate until paid to Lender pursuant to this Section 2.6.5 shall be paid by Borrower within five (5) days after Lender’s demand and such
sums and liabilities, including such interest, shall be deemed and shall constitute advances under this Agreement and be evidenced by the Note and be secured by the Loan Documents. 

  
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 2.7 Fees; Spread Maintenance Premium. 

2.7.1 Exit Fee. Upon any repayment or prepayment of Principal, Borrower shall pay to Lender on the date of such repayment or
prepayment the Exit Fee applicable thereto. Upon any acceleration or final repayment of the Loan, Borrower shall immediately pay to Lender on account of the Exit Fee the amount by which (a) one half of one percent (0.50%) of the original
Principal exceeds (b) the total amount of Exit Fees theretofore paid by Borrower pursuant to this Section 2.7.1. All Exit Fees hereunder shall be deemed to be earned by Lender upon the funding of the Loan. Notwithstanding the
foregoing, to the extent that the Loan is repaid with the proceeds of a loan from LoanCore, the Exit Fee that would otherwise be payable with respect to the portion of the Loan refinanced by LoanCore shall be waived, provided that LoanCore shall
have no obligation to offer to provide such financing. 
 2.7.2 Spread Maintenance Premium. Upon any repayment or prepayment
of Principal (including in connection with an acceleration of the Loan) made prior to the Spread Maintenance Date, Borrower shall pay to Lender on the date of such repayment or prepayment (or acceleration of the Loan) the Spread Maintenance Premium
applicable thereto. All Spread Maintenance Premium payments hereunder shall be deemed to be earned by Lender upon the funding of the Loan. 

2.8 Extension Options. Borrower shall have the right, at its option, to extend the Term until (i) September 9, 2019
(the “First Extended Maturity Date”; and the period of time from and after the originally scheduled Stated Maturity Date up to and including the First Extended Maturity Date, the “First Extension
Term”), (ii) September 9, 2020 (the “Second Extended Maturity Date”; and the period of time from and after the First Extended Maturity Date up to and including the Second Extended Maturity Date, the
“Second Extension Term”) and (iii) September 9, 2021 (the “Third Extended Maturity Date”; and the period of time from and after the Second Extended Maturity Date up to and including the Third
Extended Maturity Date, the “Third Extension Term”) (and the period of time during each such extension period being referred to herein as an “Extension Period”), by giving notice of such extension to
Lender at least fifteen (15) days prior and not more than sixty (60) days prior to the commencement of the requested Extension Period. Upon receipt of such request to extend the Term, Lender will confirm to Borrower in writing whether or
not the Stated Maturity Date will be so extended, which extension will be granted upon the satisfaction of the following conditions: 
 (a)
no Default or Event of Default exists at the time such request is made and on the then scheduled Stated Maturity Date, the First Extended Maturity Date or the Second Extended Maturity Date, as applicable; 

(b) Borrower delivers to Lender an Officer’s Certificate confirming the accuracy of the information contained in
clause (a) above and certifying that each of the representations and warranties of Borrower contained in the Loan Documents is true, complete and correct in all material respects as of the date of such Officer’s Certificate to
the extent such representations and warranties are not matters which by their nature can no longer be true and correct as a result of the passage of time; 

  
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 (c) on or prior to the commencement of the requested Extension Period, Borrower either
(i) extends the term of the Interest Rate Protection Agreement to a date not earlier than the expiration of the requested Extension Period or (ii) enters into a new interest rate protection agreement which expires no earlier than the
expiration of the requested Extension Period, and which extension or new agreement is in respect of a notional amount of the then outstanding Principal and is otherwise on the same terms set forth in Section 2.6.1 hereof and has the
effect of capping LIBOR at no more than three percent (3.00%) per annum; 
 (d) on or prior to the commencement of (i) the First
Extension Term, the Debt Yield is at least 10.00%, (ii) the Second Extension Term, the Debt Yield is at least 10.50% and (iii) the Third Extension Term, the Debt Yield is at least 11.00%. 

(e) if the option to extend the Term until the Second Extended Maturity Date is exercised, Borrower pays to Lender concurrently with the
request to so extend the Term, an extension fee in an amount equal to 0.25% of the then-outstanding Principal; and 
 (f) if the option to
extend the Term until the Third Extended Maturity Date is exercised, Borrower pays to Lender concurrently with the request to so extend the Term, an extension fee in an amount equal to 0.25% of the then-outstanding Principal. 

If Borrower is unable to satisfy all of the foregoing conditions within the applicable time frames for each, Lender shall have no obligation
to extend the Stated Maturity Date hereunder. 
  

	3.	CASH MANAGEMENT AND RESERVES 

 3.1 Cash Management Arrangements.
Borrower shall at all times cause all Rents (including Rents in the nature of sums payable by issuers of credit cards accepted at the Property) to be transmitted directly into an Eligible Account (the “Clearing Account”)
established and maintained by Borrower at a local bank selected by Borrower and reasonably approved by Lender, which shall at all times be an Eligible Institution (the “Clearing Bank”) as more fully described in the Clearing
Account Agreement. Without in any way limiting the foregoing, if Borrower or Manager receive any Rents, then (a) such amounts shall be deemed to be collateral for the Loan and shall be held in trust for the benefit, and as the property, of
Lender, (b) such amounts shall not be commingled with any other funds or property of Borrower or Manager, and (c) Borrower or Manager shall deposit such amounts into the Clearing Account within one (1) Business Day of receipt;
provided, however, that Borrower shall have the right to retain cash receipts (i.e., not credit card receipts, checks or other receipts) in Borrower’s operating account so long as the aggregate amount of cash receipts (i.e., not credit card
receipts, checks or other receipts) held in such operating account on any day does not exceed $5,000. Funds deposited into the Clearing Account shall be swept by the Clearing Bank on a daily basis into Borrower’s operating account at the
Clearing Bank, unless a Cash Management Period is continuing, in which event such funds shall be swept on a daily basis into an Eligible Account at the Cash Management Bank controlled by Lender (the “Cash Management Account”)
and 

  
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applied and disbursed in accordance with this Agreement. Funds in the Cash Management Account shall be invested at Lender’s discretion only in Permitted Investments. Lender will also
establish subaccounts of the Cash Management Account which shall at all times be Eligible Accounts (and may be ledger or book entry accounts and not actual accounts) (such subaccounts are referred to herein as “Subaccounts”).
The Cash Management Account and any Subaccounts will be under the sole control and dominion of Lender, and Borrower shall have no right of withdrawal therefrom. Borrower shall pay for all expenses of opening and maintaining all of the above
accounts. 
 3.2 Required Repairs. 

3.2.1 Completion of Required Repairs. Borrower shall perform and complete each item of the repairs and environmental remedial
work at the Property described on Schedule 1 hereto (the “Required Repairs”) within six (6) months of the date hereof (which date may be extended for an additional reasonable period of time if Borrower is
unable to complete the Required Repairs due to events of Force Majeure) or such shorter period of time for such item set forth on Schedule 1 hereto. 

3.2.2 Required Repairs Reserves. On the date hereof, Borrower shall deposit with Lender the aggregate amount set forth on
Schedule 1 hereto and Lender shall cause such amount to be transferred to a Subaccount (the “Required Repairs Subaccount”). Provided no Event of Default shall have occurred and is continuing, Lender shall disburse
funds held in the Required Repairs Subaccount to Borrower, within fifteen (15) days after the delivery by Borrower to Lender of a request therefor (but not more often than once per month), in increments of at least $5,000 (or such lesser amount
equal to the remaining balance of the Required Repairs Subaccount), and, with respect to any particular disbursement for any portion of the Required Repairs, in an amount not to exceed the amount set forth on Schedule 1 with respect to
such particular portion or item of the Required Repairs, accompanied by the following items (which items shall be in form and substance satisfactory to Lender): (a) an Officer’s Certificate (i) certifying that the Required Repairs or
any portion thereof which are the subject of the requested disbursement have been completed in a good and workmanlike manner and in accordance with all applicable Legal Requirements, (ii) identifying each Person that supplied materials or labor
in connection with such Required Repairs or any portion thereof and (iii) stating that each such Person has been or, upon receipt of the requested disbursement, will be paid in full with respect to the portion of the Required Repairs which is
the subject of the requested disbursement; (b) copies of appropriate lien waivers or other evidence of payment satisfactory to Lender; (c) at Lender’s option, a title search for the Property indicating that it is free from all Liens
not previously approved by Lender; (d) a copy of each License required to be obtained with respect to the portion of the Required Repairs which is the subject of the requested disbursement; and (e) such other evidence as Lender shall
reasonably request that the Required Repairs which are the subject of the requested disbursement have been completed and paid for. Provided no Default or Event of Default shall have occurred and is continuing, upon Borrower’s completion of all
Required Repairs in accordance with this Section 3.2, Lender shall release any funds remaining in the Required Repairs Subaccount, if any, to Borrower. 

3.3 Taxes. Borrower shall pay to Lender (a) $585,000 on the date hereof on account of Real Estate Taxes, and (b) on
each Payment Date, one-twelfth (1/12) of the Real Estate Taxes 

  
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that Lender estimates will be payable during the next twelve (12) months (initially $48,800 per month) in order to accumulate with Lender sufficient funds to pay all such Real Estate Taxes
at least thirty (30) days prior to their respective due dates. Such amounts will be transferred by Lender to a Subaccount (the “Tax Subaccount”). Provided that no Event of Default has occurred and is continuing, Lender
will (i) apply funds in the Tax Subaccount to payments of Real Estate Taxes required to be made by Borrower pursuant to Section 5.2 hereof, provided that Borrower has promptly supplied Lender with notices of all Real Estate Taxes
due, or (ii) reimburse Borrower for such amounts upon presentation of evidence of payment; subject, however, to Borrower’s right to contest Real Estate Taxes in accordance with Section 5.2 hereof. In making any payment relating
to Real Estate Taxes, Lender may do so according to any bill, statement or estimate procured from the appropriate public office, without inquiry into the accuracy of such bill, statement or estimate or into the validity of any tax, assessment, sale,
forfeiture, tax lien or title or claim thereof. If Lender determines in its reasonable judgment that the funds in the Tax Subaccount will be insufficient to pay (or in excess of) the Real Estate Taxes next coming due, Lender may increase (or
decrease) the monthly contribution required to be made by Borrower to the Tax Subaccount. 
 3.4 Insurance. Borrower shall pay
to Lender (a) $57,000 on the date hereof on account of Insurance Premiums and (b) on each Payment one-twelfth (1/12) of the Insurance Premiums that Lender estimates will be payable (initially $8,100 per month) for the renewal of the
coverage afforded by the Policies upon the expiration thereof in order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to the expiration of the Policies. Such amounts will be
transferred by Lender to a Subaccount (the “Insurance Subaccount”). Provided that no Event of Default has occurred and is continuing, Lender will (i) apply funds in the Insurance Subaccount to payments of Insurance
Premiums required to be made by Borrower pursuant to Section 7.1 hereof, provided that Borrower has promptly supplied Lender with notices of all Insurance Premiums due, or (ii) reimburse Borrower for such amounts upon presentation
of evidence of payment. In making any payment relating to Insurance Premiums, Lender may do so according to any bill, statement or estimate procured from the insurer or agent, without inquiry into the accuracy of such bill, statement or estimate. If
Lender determines in its reasonable judgment that the funds in the Insurance Subaccount will be insufficient to pay (or in excess of) the Insurance Premiums next coming due, Lender may increase (or decrease) the monthly contribution required to be
made by Borrower to the Insurance Subaccount. 
 3.5 Capital/FF&E Expense Reserves. Borrower shall pay to Lender on each
Payment Date, an amount equal to one-twelfth (1/12th) of four percent (4.00%) of the annual gross operating income for the Property (based on the prior year). Lender will transfer such
amounts into a Subaccount (the “Capital/FF&E Expense Reserve Subaccount”). Additionally, upon thirty (30) days’ prior notice to Borrower, Lender may reassess and increase the amount of the monthly payment
required under this Section 3.5 from time to time in its reasonable discretion (based upon its then current underwriting standards); provided, however, the amount of any such reassessment shall not exceed the amount of the reserve
account contribution then being required by Franchisor pursuant to the Franchise Agreement. Provided that no Default or Event of Default has occurred and is continuing, Lender shall disburse funds held in the Capital Expense Reserve Subaccount to
Borrower, within fifteen (15) days after the delivery by Borrower to Lender of a request therefor (but not more often than once per month), in increments 

  
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of at least $10,000 provided that: (i) such disbursement is for an Approved Capital/FF&E Expense; (ii) with respect to any disbursement from the Capital/FF&E Expense Reserve
Subaccount in excess of $75,000, Lender shall have (if it desires) verified (by an inspection conducted at Borrower’s expense) performance of the work associated with such Approved Capital/FF&E Expense; and (iii) the request for
disbursement is accompanied by (A) an Officer’s Certificate certifying (1) that such funds will be used to pay or reimburse Borrower for Approved Capital/FF&E Expenses and a description thereof, (2) that all outstanding trade
payables (other than those to be paid from the requested disbursement or those constituting Permitted Indebtedness) have been paid in full, (3) that the same has not been the subject of a previous disbursement, and (4) that all
previous disbursements have been used to pay the previously identified Approved Capital/FF&E Expenses, and (B) lien waivers or other evidence of payment satisfactory to Lender unless the requested disbursement shall be used to pay for such
Approved Capital/FF&E Expense directly (and not reimburse Borrower for the Approved Capital/FF&E Expense previously paid for by Borrower), in which case Borrower shall be required to deliver such items with respect to the Approved
Capital/FF&E Expense which was the subject of the previous disbursement and conditional lien waivers with respect to the requested items to be paid for from the requested disbursement, (C) at Lender’s option, a title search for the
Property indicating that the Property is free from all Liens, claims and other encumbrances not previously approved by Lender and (D) such other evidence as Lender shall reasonably request that the Approved Capital/FF&E Expenses (other than
with respect to a request for Approved Capital/FF&E Expenses Deposits) at the Property to be funded by the requested disbursement have been completed and are paid for or will be paid upon such disbursement to Borrower. Any such disbursement of
more than $25,000 to pay (rather than reimburse) Approved Capital/FF&E Expenses may, at Lender’s option, be made by direct check payable to the payee on such Approved Capital/FF&E Expenses. 

3.6 PIP Reserve Subaccount Upon the commencement and during the continuation of a PIP Sweep Period, all Available Cash
shall be deposited into a Subaccount (the “PIP Reserve Subaccount”). Funds deposited into the PIP Reserve Subaccount are referred to herein as the “PIP Funds” and shall be disbursed and applied in
accordance with this Section 3.6. Borrower shall perform and complete each item of the renovations required under any PIP (the “PIP Work”), on or before the dates set forth in such PIP for completion of the PIP
Work. Provided that no Default or Event of Default has occurred and is continuing, Lender shall disburse funds held in the PIP Reserve Subaccount to Borrower, within fifteen (15) days after the delivery by Borrower to Lender of a request
therefor (but not more often than once per month), in increments of at least $10,000 provided that: (i) such disbursement is for an expense associated with the PIP Work; (ii) with respect to any disbursement from the PIP Reserve Subaccount
in excess of $75,000, Lender shall have (if it desires) verified (by an inspection conducted at Borrower’s expense) performance of the PIP Work associated with such expense; and (iii) the request for disbursement is accompanied by
(A) an Officer’s Certificate certifying (1) that such funds will be used to pay or reimburse Borrower for such PIP Work and a description thereof, (2) that all outstanding trade payables (other than those to be paid from the
requested disbursement or those constituting Permitted Indebtedness) have been paid in full, (3) that the same has not been the subject of a previous disbursement, and (4) that all previous disbursements have been used to pay the
previously identified expenses associated with such PIP Work, and (B) lien waivers or other evidence of payment satisfactory to Lender unless the requested disbursement shall be used to pay for such PIP Work directly (and not reimburse 

  
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Borrower for the PIP Work expenses previously paid for by Borrower), in which case Borrower shall be required to deliver such items with respect to the PIP Work which was the subject of the
previous disbursement and conditional lien waivers with respect to the requested items to be paid for from the requested disbursement, (C) at Lender’s option, a title search for the Property indicating that the Property is free from all
Liens, claims and other encumbrances not previously approved by Lender and (D) such other evidence as Lender shall reasonably request that the expenses associated with the PIP Work at the Property to be funded by the requested disbursement have
been completed and are paid for or will be paid upon such disbursement to Borrower. Any such disbursement of more than $25,000 to pay (rather than reimburse) expenses associated with PIP Work may, at Lender’s option, be made by direct check
payable to the payee on such PIP Work expenses. 
 3.7 Operating Expense Subaccount. During a Cash Management Period, on each
Payment Date, a portion of the Rents that have been deposited into the Cash Management Account during the immediately preceding Interest Period in an amount equal to the sum of the monthly amount set forth in the Approved Operating Budget and the
monthly amount of Approved Additional Operating Expenses, in each case, for the following month as being necessary for payment of Approved Operating Expenses and Approved Additional Operating Expenses at the Property for such month shall be
transferred into a Subaccount for the payment of Approved Operating Expenses and Approved Additional Operating Expenses (the “Operating Expense Subaccount”). Provided no Default or Event of Default has occurred and is
continuing, Lender shall disburse funds held in the Operating Expense Subaccount to Borrower, within fifteen (15) days after delivery by Borrower to Lender of a request therefor (but not more often than once per month), in increments of at
least $1,000, provided (a) such disbursement is for an Approved Operating Expense or Approved Additional Operating Expense and (b) such disbursement is accompanied by (i) an Officer’s Certificate certifying (A) that such
funds will be used to pay Approved Operating Expenses or Approved Additional Operating Expenses and a description thereof, (B) that all outstanding trade payables (other than those to be paid from the requested disbursement or those
constituting Permitted Indebtedness) have been paid in full, (C) that the same has not been the subject of a previous disbursement, and (D) that all previous disbursements have been or will be used to pay the previously identified Approved
Operating Expenses and Approved Additional Operating Expenses, and (ii) reasonably detailed documentation satisfactory to Lender as to the amount, necessity and purpose therefor. 

3.8 Casualty/Condemnation Subaccount. Borrower shall pay, or cause to be paid, to Lender all Proceeds or Awards due to any
Casualty or Condemnation to be transferred to a Subaccount (the “Casualty/Condemnation Subaccount”) in accordance with the provisions of Article 7 hereof. All amounts in the Casualty/Condemnation Subaccount shall
be disbursed in accordance with the provisions of Article 7 hereof. 
 3.9 Security Deposits. Borrower shall keep
and hold all security deposits under Leases in accordance with applicable Legal Requirements and, if required under applicable Legal Requirements, at a separately designated account under Borrower’s control at the Clearing Bank (and in the case
of a letter of credit, assigned with full power of attorney and executed sight drafts to Lender) so that the security deposits shall not be commingled with any other funds of Borrower. During a Cash Management Period, Borrower shall, upon
Lender’s request, if permitted by applicable Legal Requirements, turn over to Lender the security deposits (and any interest theretofore earned thereon) under Leases, to be held by Lender in a Subaccount (the “Security Deposit
Subaccount”) subject to the terms of the Leases. Security deposits held in the 

  
 38 

 
Security Deposit Subaccount will be released by Lender upon notice from Borrower together with such evidence as Lender may reasonably request that such security deposit is required to be returned
to a tenant pursuant to the terms of a Lease or may be applied as Rent pursuant to the rights of Borrower under the applicable Lease. Any letter of credit or other instrument that Borrower receives in lieu of a cash security deposit under any Lease
entered into after the date hereof shall (a) be maintained in full force and effect in the full amount unless replaced by a cash deposit as hereinabove described and (b) if permitted pursuant to any Legal Requirements, name Lender as payee
or mortgagee thereunder (or at Lender’s option, be fully assignable to Lender). 
 3.10 Cash Collateral Subaccount. If a
Cash Management Period shall have commenced (other than a Cash Management Period continuing solely because of the continuance of a PIP Sweep Period), then on the immediately succeeding Payment Date and on each Payment Date thereafter during the
continuance of such Cash Management Period, all Available Cash shall be paid to Lender, which amounts shall be transferred by Lender into a Subaccount (the “Cash Collateral Subaccount”) as cash collateral for the Debt. Any
funds in the Cash Collateral Subaccount and not previously disbursed or applied shall, upon the termination of such Cash Management Period, be disbursed to Borrower. Lender shall have the right, but not the obligation, at any time (a) during
the continuance of an Event of Default or (b) subsequent to the second Calculation Date following the commencement of a Cash Management Period (whether or not an Event of Default is then continuing), to apply all sums then on deposit in the
Cash Collateral Subaccount to the Debt, in such order and in such manner as Lender shall elect, including to make a prepayment of Principal (together with the applicable Exit Fee and Spread Maintenance Premium applicable thereto). 

3.11 Grant of Security Interest; Application of Funds. As security for payment of the Debt and the performance by Borrower of
all other terms, conditions and provisions of the Loan Documents, Borrower hereby pledges and assigns to Lender, and grants to Lender a security interest in, all of Borrower’s right, title and interest in and to all Rents and in and to all
payments to or monies held in the Clearing Account, the Cash Management Account, and all Subaccounts created pursuant to this Agreement (collectively, the “Cash Management System Accounts”). Borrower hereby grants to Lender a
continuing security interest in, and agrees to hold in trust for the benefit of Lender, all Rents in its possession prior to the (a) payment of such Rents to Lender or (b) deposit of such Rents into the Cash Management System Account.
Borrower shall not, without obtaining the prior written consent of Lender, further pledge, assign or grant any security interest in any Cash Management System Account, or permit any Lien to attach thereto, or any levy to be made thereon, or any UCC
Financing Statements, except those naming Lender as the secured party, to be filed with respect thereto. This Agreement is, among other things, intended by the parties to be a security agreement for purposes of the UCC. Upon the occurrence and
during the continuance of an Event of Default, Lender may apply any sums in any Cash Management System Account in any order and in any manner as Lender shall elect without seeking the appointment of a receiver and without adversely affecting the
rights of Lender to foreclose the Lien of the Mortgage or exercise its other rights under the Loan Documents. Cash Management System Accounts shall not constitute trust funds and may be commingled with other monies held by Lender. All interest which
accrues on the funds in any Cash Management System Account (other than the Tax Subaccount and the Insurance Subaccount) shall accrue for the benefit of Borrower and shall be taxable to Borrower and shall be added to and disbursed in the same manner
and under the same conditions as the principal sum on which said interest accrued. Upon repayment in full of the Debt, all remaining funds in the Subaccounts, if any, shall be promptly disbursed to Borrower. 

  
 39 

 3.12 Property Cash Flow Allocation. 

(a) During any Cash Management Period, all Rents deposited into the Cash Management Account during the immediately preceding Interest Period
shall be applied on each Payment Date as follows in the following order of priority: 
 (i) First, to make payments into the
Tax Subaccount as required under Section 3.3 hereof; 
 (ii) Second, to make payments into the Insurance
Subaccount as required under Section 3.4 hereof 
 (iii) Third, to pay the monthly portion of the fees charged
by the Cash Management Bank in accordance with the Cash Management Agreement; 
 (iv) Fourth, to Lender to pay the interest
due on such Payment Date (plus, if applicable, interest at the Default Rate and all other amounts, other than those described under other clauses of this Section 3.15(a), then due to Lender under the Loan Documents); 

(v) Fifth, to make payments into the Capital/FF&E Expense Reserve Subaccount as required under Section 3.5
hereof; 
 (vi) Sixth, to make payments for Approved Operating Expenses and Approved Additional Operating Expenses as
required under Section 3.8 hereof; 
 (vii) Lastly, to make payments in an amount equal to all remaining
Available Cash on such Payment Date: 
 (1) during a Cash Management Period continuing because a PIP Sweep Period is
continuing (regardless of whether any other Cash Management Period is continuing), to the PIP Reserve Subaccount to be held or disbursed in accordance with Section 3.6; 

(2) if a Cash Management Period is continuing (other than due to a PIP Sweep Period), into the Cash Collateral Subaccount in
accordance with Section 3.11 hereof. 
 (b) The failure of Borrower to make all of the payments required under clauses
(i) through (vi) of Section 3.12(a) hereof in full on each Payment Date shall constitute an Event of Default under this Agreement; provided, however, if adequate funds are available in the
Cash Management Account for such payments, the failure by the Cash Management Bank to allocate such funds into the appropriate Subaccounts shall not constitute an Event of Default. 

  
 40 

 (c) Notwithstanding anything to the contrary contained in this Section 3.12 or
elsewhere in the Loan Documents, after the occurrence of an Event of Default, Lender may apply all Rents deposited into the Cash Management Account and other proceeds of repayment in such order and in such manner as Lender shall elect. Lender’s
right to withdraw and apply any of the foregoing funds shall be in addition to all other rights and remedies provided to Lender under the Loan Documents. 
  

	4.	REPRESENTATIONS AND WARRANTIES 

 Borrower represents and warrants to Lender as of the date hereof
that, as to itself, except to the extent (if any) disclosed on Schedule 2 attached hereto with reference to a specific Section of this Article 4: 

4.1 Organization; Special Purpose 

(a) Each of Borrower and Sole Member is duly organized, validly existing and in good standing under the laws of the state of its formation,
with requisite power and authority, and all rights, licenses, permits and authorizations, governmental or otherwise, necessary to own its properties and to transact the business in which it is now engaged. Borrower is duly qualified to do business
and is in good standing in the jurisdiction in which the Property is located and in each other jurisdiction where it is required to be so qualified in connection with its properties, business and operations. 

(b) Borrower has at all times since its formation been, and as of the date hereof is, a Special Purpose Bankruptcy Remote Entity. 

4.2 Proceedings; Enforceability. Borrower has taken all necessary action to authorize the execution, delivery and
performance of the Loan Documents to which it is a party by it, and has the power and authority to execute, deliver and perform under the Loan Documents and all the transactions contemplated thereby. The Loan Documents to which Borrower is a party
have been duly authorized, executed and delivered by Borrower and constitute legal, valid and binding obligations of Borrower, enforceable against Borrower in accordance with their respective terms, except as such enforcement may be limited by
bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally, and by general principles of equity (regardless of whether such enforceability is considered in a proceeding in
equity or at law). The Loan Documents are not subject to any right of rescission, set-off, counterclaim or defense by Borrower or Guarantor, including the defense of usury, nor would the operation of any of the terms of the Loan Documents, or the
exercise of any right thereunder, render the Loan Documents unenforceable, and none of Borrower or Guarantor have asserted any right of rescission, set-off, counterclaim or defense with respect thereto. 

4.3 No Conflicts. The execution, delivery and performance of the Loan Documents by Borrower and the transactions contemplated
hereby will not conflict with any provision of any law or regulation to which Borrower is subject, or conflict with, or result in a breach of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition
of any Lien (other than pursuant to the Loan Documents) upon any of the property of Borrower 

  
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pursuant to the terms of, any agreement or instrument to which Borrower is a party or by which Borrower’s property is subject, nor will such action result in any violation of the provisions
of any statute or any order, rule or regulation of any Governmental Authority having jurisdiction over Borrower or any of Borrower’s property. Borrower’s rights under the Licenses, the Franchise Agreement and the Management Agreement will
not be adversely affected by the execution and delivery of the Loan Documents, Borrower’s performance thereunder, the recordation of the Mortgage, or the exercise of any remedies by Lender. Any consent, approval, authorization, order,
registration or qualification of or with any Governmental Authority required for the execution, delivery and performance by Borrower of, or compliance by Borrower with, the Loan Documents or the consummation of the transactions contemplated hereby,
has been obtained and is in full force and effect. 
 4.4 Litigation. There are no actions, suits or other proceedings at law
or in equity by or before any Governmental Authority now pending or threatened (in writing) against or affecting Borrower, Sole Member, Guarantor, Key Principal, Manager or the Property, in any court or by or before any other Governmental Authority,
which, if adversely determined, might have a Material Adverse Effect. 
 4.5 Agreements. Borrower is not a party to any
agreement or instrument or subject to any restriction which might have a Material Adverse Effect. Borrower is not in default with respect to any order or decree of any court or any order, regulation or demand of any Governmental Authority, which
default might have a Material Adverse Effect. Borrower is not in default, and has not received notice of any event or condition that with the giving of notice or the passage of time would constitute a default, in any material respect in the
performance, observance or fulfillment of any of the obligations, covenants or conditions contained in any Permitted Encumbrance or any other agreement or instrument to which it is a party or by which it or the Property is bound, and to
Borrower’s knowledge, there are no defaults under any such agreement by any other party thereto. 
 4.6 Title. Fee
Borrower has good, marketable and indefeasible title in fee to the real property and Leasehold Borrower has leasehold title to the real property demised under the Operating Lease and Borrower has good title to the balance of the Property, free and
clear of all Liens except the Permitted Encumbrances. All transfer taxes, deed stamps, intangible taxes or other amounts in the nature of transfer taxes required to be paid by any Person under applicable Legal Requirements in connection with the
transfer of the Property to Borrower have been paid or are being paid simultaneously herewith. To Borrower’s knowledge, the Mortgage when properly recorded in the appropriate records, together with any UCC Financing Statements required to be
filed in connection therewith, will create (a) a valid, perfected first priority lien on Borrower’s interest in the Property and (b) valid and perfected first priority security interests in and to, and perfected collateral assignments
of, all personalty (including the Leases), all in accordance with the terms thereof, in each case subject only to any applicable Permitted Encumbrances. All mortgage, mortgage recording, stamp, intangible or other similar taxes required to be paid
by any Person under applicable Legal Requirements in connection with the execution, delivery, recordation, filing, registration, perfection or enforcement of any of the Loan Documents, including the Mortgage, have been paid or are being paid
simultaneously herewith. To Borrower’s knowledge, all taxes and governmental assessments due and owing in respect of the Property have been paid, or an escrow of funds in an amount sufficient to cover such 

  
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payments has been established hereunder or are insured against by the Title Insurance Policy. To Borrower’s knowledge, the Permitted Encumbrances, individually or in the aggregate, do not
(i) materially interfere with the benefits of the security intended to be provided by the Mortgage and this Agreement, (ii) materially and adversely affect the value, operation or use of the Property, or (iii) impair Borrower’s
ability to repay the Loan. To Borrower’s knowledge, no Condemnation or other proceeding has been commenced or, to Borrower’s best knowledge, is contemplated with respect to all or any portion of the Property or for the relocation of
roadways providing access to the Property. There are no mechanics’, materialman’s or other similar Liens or claims which have been filed for work, labor or materials affecting the Property which are or may become a Lien on the Property.
Except as set forth in the Option Agreement, there are no outstanding options to purchase or rights of first refusal affecting all or any portion of the Property. To Borrower’s knowledge, the Survey does not fail to reflect any material matter
affecting the Property or the title thereto. All of the Improvements which were included in determining the appraised value of the Property lie wholly within the boundaries and building restriction lines of the Property, and no improvements on
adjoining properties encroach upon the Property, and no easements or other encumbrances affecting the Property encroach upon any of the Improvements, so as to affect the value or marketability of the Property, except those which are set forth on the
Survey and insured against by the Title Insurance Policy. Each parcel comprising the Property is a separate tax lot and is not a portion of any other tax lot that is not a part of the Property. To Borrower’s knowledge, there are no pending or
proposed special or other assessments for public improvements or otherwise affecting the Property, nor are there any contemplated improvements to the Property that may result in such special or other assessments. With respect to the Title Insurance
Policy, to Borrower’s knowledge, the Title Insurance Policy is in full force and effect. 
 4.7 No Bankruptcy Filing.
Neither Borrower nor any of its constituent Persons are contemplating either the filing of a petition by it under any state or federal bankruptcy or insolvency law or the liquidation of all or a major portion of Borrower’s assets or properties
(a “Bankruptcy Proceeding”), and Borrower has no knowledge of any Person contemplating the filing of any such petition against it or such constituent Persons. In addition, neither Borrower nor Sole Member, Guarantor, Key
Principal, nor any principal nor Affiliate of Borrower, Sole Member, Kanders, Dave or Key Principal, has been a party to, or the subject of a Bankruptcy Proceeding for the past ten (10) years. For purposes of this Section 4.7, the
term “Affiliate” does not include the direct or indirect equity owners of Condor Guarantor or the limited partners of Supertel or the direct or indirect owners of Supertel’s limited partners. 

4.8 Full and Accurate Disclosure. No statement of fact made by Borrower in any Loan Documents with respect to Borrower, Sole
Member, Guarantor, Key Principal or Manager contains any untrue statement of a material fact or omits to state any material fact necessary to make statements contained therein not misleading. To Borrower’s knowledge, no statement of fact made
by Borrower in any Loan Documents with respect to the Property contains any untrue statement of a material fact or omits to state any material fact necessary to make statements contained therein not misleading. There is no material fact presently
known to Borrower that has not been disclosed to Lender which adversely affects, or, as far as Borrower can foresee, might have a Material Adverse Effect. All financial data, including the statements of cash flow and income and operating expense,
that have been delivered to Lender in respect of Borrower and Guarantor (a) are true, complete and correct in all material respects, (b) accurately represent the 

  
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financial condition of Borrower and Guarantor as of the date of such reports, and (c) to the extent prepared by an independent certified public accounting firm, have been prepared in
accordance with GAAP consistently applied throughout the periods covered, except as disclosed therein. To Borrower’s knowledge, all financial data, including the statements of cash flow and income and operating expense, that have been delivered
to Lender in respect of the Property (a) are true, complete and correct in all material respects, (b) accurately represent the financial condition of the Property as of the date of such reports, and (c) to the extent prepared by an
independent certified public accounting firm, have been prepared in accordance with GAAP consistently applied throughout the periods covered, except as disclosed therein. Borrower has no contingent liabilities, liabilities for taxes, unusual forward
or long-term commitments, unrealized or anticipated losses from any unfavorable commitments or any liabilities or obligations not expressly permitted by this Agreement. Since the date of such financial statements, there has been no materially
adverse change in the financial condition, operations or business of Borrower, Guarantor or the Property from that set forth in said financial statements. 

4.9 Tax Filings. To the extent required, Borrower has filed (or has obtained effective extensions for filing) all
federal, state, commonwealth, district and local tax returns required to be filed and has paid or made adequate provision for the payment of all federal, state, commonwealth, district and local taxes, charges and assessments payable by Borrower.
Borrower’s tax returns (if any) properly reflect the income and taxes of Borrower for the periods covered thereby, subject only to reasonable adjustments required by the Internal Revenue Service or other applicable tax authority upon audit.

 4.10 ERISA; No Plan Assets. As of the date hereof and throughout the Term (a) neither Borrower,
Guarantor nor any ERISA Affiliate are themselves an “employee benefit plan,” as defined in Section 3(3) of ERISA or a “plan” as defined in Section 4975 of the Code, (b) none of the assets of Borrower or Guarantor
constitutes or will constitute “plan assets” of one or more such plans within the meaning of 29 C.F.R. Section 2510.3-101, as modified in operation by Section 3(42) of ERISA, (c) neither Borrower nor Guarantor are or
will be a “governmental plan” within the meaning of Section 3(32) of ERISA, and (d) transactions by or with Borrower or Guarantor are not and will not be subject to state statutes regulating investment of, and fiduciary
obligations with respect to, governmental plans. As of the date hereof, neither Borrower, Guarantor nor any ERISA Affiliate maintains, sponsors or contributes to or has any obligation with respect to a “defined benefit plan” (within the
meaning of Section 3(35) of ERISA) or a “multiemployer pension plan” (within the meaning of Section 3(37)(A) of ERISA). Neither Borrower nor Guarantor has engaged in any transaction in connection with which it could be subject to
either a material civil penalty assessed pursuant to the provisions of Section 502 of ERISA or a material tax imposed under the provisions of Section 4975 of the Code. 

4.11 Compliance. Borrower and to Borrower’s knowledge, the Property (including the Improvements) and the use thereof comply
in all material respects with all applicable Legal Requirements (including with respect to parking, building and applicable zoning and land use laws, codes, regulations and ordinances). To Borrower’s knowledge, Borrower is not in default or
violation of any order, writ, injunction, decree or demand of any Governmental Authority, the violation of which might have a Material Adverse Effect. Borrower has not committed any act which may give any Governmental Authority the right to cause
Borrower to forfeit the Property or any part thereof or any monies paid in performance of Borrower’s obligations under any of the 

  
 44 

 
Loan Documents. The Property is used exclusively as a hotel and other appurtenant and related uses. To Borrower’s knowledge, in the event that all or any part of the Improvements are
destroyed or damaged, said Improvements can be legally reconstructed to their condition prior to such damage or destruction, and thereafter exist for the same use without violating any zoning or other ordinances applicable thereto and without the
necessity of obtaining any variances or special permits. No legal proceedings are pending or, to the knowledge of Borrower, threatened with respect to the zoning of the Property. Neither the zoning nor any other right to construct, use or operate
the Property is in any way dependent upon or related to any property other than the Property. To Borrower’s knowledge, all certifications, permits, licenses and approvals, including certificates of completion and occupancy permits required of
Borrower for the legal use, occupancy and operation of the Property for its current use (collectively, the “Licenses”), have been obtained and are in full force and effect (or Borrower is legally entitled to operate the
Property in accordance with existing Licenses and promptly following the date hereof, will obtain such Licenses in accordance with Legal Requirements and local practice). The use being made of the Property is in conformity with the certificate of
occupancy issued for the Property and all other restrictions, covenants and conditions affecting the Property. 
 4.12 Major
Contracts. Borrower has not entered into, nor is bound by, any Major Contract which continues in existence, except those previously disclosed in writing to Lender. Each of the Major Contracts is in full force and effect, there are no
monetary or other material defaults by Borrower thereunder and, to the best knowledge of Borrower, there are no monetary or other material defaults thereunder by any other party thereto. None of Borrower, Manager or any other Person acting on
Borrower’s behalf has given or received any notice of default under any of the Major Contracts that remains uncured or in dispute. Borrower has delivered true, correct and complete copies of the Major Contracts (including all amendments and
supplements thereto) to Lender. Except for Manager under the Management Agreement, no Major Contract has as a party an Affiliate of Borrower. 

4.13 Federal Reserve Regulations; Investment Company Act; Bank Holding Company. No part of the proceeds of the Loan will be used
for the purpose of purchasing or acquiring any “margin stock” within the meaning of Regulation U of the Board of Governors of the Federal Reserve System or for any other purpose that would be inconsistent with such Regulation U or any
other regulation of such Board of Governors, or for any purpose prohibited by Legal Requirements or any Loan Document. Borrower is not (a) an “investment company” or a company “controlled” by an “investment
company,” within the meaning of the Investment Company Act of 1940, as amended or (b) subject to any other federal or state law or regulation which purports to restrict or regulate its ability to borrow money. Borrower is not a “bank
holding company” or a direct or indirect subsidiary of a “bank holding company” as defined in the Bank Holding Company Act of 1956, as amended, and Regulation Y thereunder of the Board of Governors of the Federal Reserve System. 

4.14 Easements; Utilities and Public Access. To Borrower’s knowledge, all easements, cross easements, licenses, air rights
and rights-of-way or other similar property interests (collectively, “Easements”), if any, necessary for the full utilization of the Improvements for their intended purposes have been obtained, are described in the Title
Insurance Policy and are in full force and effect without default thereunder. The Property has rights of access to public ways and is served by water, sewer, sanitary sewer and storm drain 

  
 45 

 
facilities adequate to service the Property for its intended uses. All public utilities necessary or convenient to the full use and enjoyment of the Property are located in the public
right-of-way abutting the Property, and all such utilities are connected so as to serve the Property without passing over other property absent a valid irrevocable easement. All roads necessary for the use of the Property for its current purpose
have been completed and dedicated to public use and accepted by all Governmental Authorities. 
 4.15 Physical Condition.
Except as may be expressly set forth in the Physical Conditions Report, to Borrower’s knowledge, the Property, including all buildings, improvements, parking facilities, sidewalks, storm drainage systems, roofs, plumbing systems, HVAC systems,
fire protection systems, electrical systems, equipment, elevators, exterior sidings and doors, landscaping, irrigation systems and all structural components, are in good condition, order and repair in all material respects; there exists no
structural or other material defects or damages to the Property, whether latent or otherwise. Borrower has not received notice from any insurance company or bonding company of any defects or inadequacies in the Property, or any part thereof, which
would adversely affect the insurability of the same or cause the imposition of extraordinary premiums or charges thereon or any termination or threatened termination of any policy of insurance or bond. No portion of the Property is located in an
area as identified by the Federal Emergency Management Agency as an area having special flood hazards, or, if so located the flood insurance required pursuant to Section 7.1.1 hereof is in full force and effect with respect to the
Property. The Improvements have suffered no material casualty or damage which has not been fully repaired and the cost thereof fully paid. 

4.16 Leases. The Property is not subject to any Leases other than the Operating Lease. 

4.17 Fraudulent Transfer. Borrower has not entered into the Loan or any Loan Document with the actual intent to hinder, delay,
or defraud any creditor, and Borrower has received reasonably equivalent value in exchange for its obligations under the Loan Documents. Giving effect to the transactions contemplated by the Loan Documents, the fair saleable value of Borrower’s
assets exceeds and will, immediately following the execution and delivery of the Loan Documents, exceed Borrower’s total probable liabilities, including subordinated, unliquidated, disputed or contingent liabilities. The fair saleable value of
Borrower’s assets is, and immediately following the making of the Loan, will be, greater than Borrower’s probable liabilities, including the maximum amount of its contingent liabilities on its debts as such debts become absolute and
matured. Borrower’s assets do not and, immediately following the execution and delivery of the Loan Documents will not, constitute unreasonably small capital to carry out its business as conducted or as proposed to be conducted. Borrower does
not intend to, and does not believe that it will, incur debts and liabilities (including contingent liabilities and other commitments) beyond its ability to pay such debts as they mature (taking into account the timing and amounts to be payable on
or in respect of the obligations of Borrower). 
 4.18 Ownership of Borrower. Fee Borrower’s exact legal name is: Spring
Street Hotel Property LLC and Leasehold Borrower’s name is Spring Street Hotel OpCo LLC. Each Borrower is of the following organizational type (e.g., corporation, limited liability company): limited liability company, and the jurisdiction in
which Borrower is organized is: Delaware. Fee Borrower’s Tax I.D. number is 81-3395281, Leasehold Borrower’s Tax I.D. number is 81-3380357, Fee Borrower’s Delaware Organizational I.D. number is 6101153 and Leasehold 

  
 46 

 
Borrower’s Delaware Organizational I.D. number is 6101519. The sole member of Fee Borrower is Fee Sole Member and the sole member of Leasehold Borrower is Leasehold Sole Member. The
membership interests in Borrower are owned free and clear of all Liens, warrants, options and rights to purchase. Borrower has no obligation to any Person to purchase, repurchase or issue any ownership interest in it. The organizational chart
attached hereto as Schedule 4 is true, complete and accurate in all respects and illustrates all Persons who have a direct or indirect ownership interest in Borrower. 

4.19 Purchase Options. Neither the Property nor any part thereof is subject to any purchase options (other than pursuant to the
Option Agreement and the JV Agreement), rights of first refusal, rights of first offer or other similar rights in favor of third parties. 

4.20 Management Agreement. The Management Agreement is in full force and effect. There is no default, breach or violation
existing thereunder, and no event has occurred (other than payments due but not yet delinquent) that, with the passage of time or the giving of notice, or both, would constitute a default, breach or violation thereunder, by either party thereto.

 4.21 Hazardous Substances. (a) To Borrower’s knowledge, after due inquiry, and except as set forth in the
Environmental Report, the Property is not in violation of any Legal Requirement pertaining to or imposing liability or standards of conduct concerning environmental regulation, contamination or clean-up, including the Comprehensive Environmental
Response, Compensation and Liability Act, the Resource Conservation and Recovery Act, the Emergency Planning and Community Right-to-Know Act of 1986, the Hazardous Substances Transportation Act, the Solid Waste Disposal Act, the Clean Water Act, the
Clean Air Act, the Toxic Substance Control Act, the Safe Drinking Water Act, the Occupational Safety and Health Act, any state super-lien and environmental clean-up statutes (including with respect to Toxic Mold), any local law requiring related
permits and licenses and all amendments to and regulations in respect of the foregoing laws (collectively, “Environmental Laws”); (b) the Property is not subject to any private or governmental Lien or judicial or
administrative notice or action or inquiry, investigation or claim relating to hazardous, toxic and/or dangerous substances, toxic mold or fungus of a type that may pose a risk to human health or the environment or would negatively impact the value
of the Property (“Toxic Mold”) or any other substances or materials which are included under or regulated by Environmental Laws (collectively, “Hazardous Substances”); (c) to the best of
Borrower’s knowledge, after due inquiry, no Hazardous Substances are or have been (including the period prior to Borrower’s acquisition of the Property), discharged, generated, treated, disposed of or stored on, incorporated in, or removed
or transported from the Property other than in compliance with all Environmental Laws; (d) to the best of Borrower’s knowledge, after due inquiry, no Hazardous Substances are present in, on or under any nearby real property which could
migrate to or otherwise affect the Property; (e) to the best of Borrower’s knowledge, after due inquiry, no Toxic Mold is on or about the Property which requires remediation; (f) no underground storage tanks exist on the Property and
the Property has never been used as a landfill; and (g) there have been no environmental investigations, studies, audits, reviews or other analyses conducted by or on behalf of Borrower or which are in Borrower’s possession which have not
been provided to Lender. 

  
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 4.22 Name; Principal Place of Business. Borrower does not use and will not use any
trade name and has not done and will not do business under any name other than its actual name set forth herein. The principal place of business of Borrower is its primary address for notices as set forth in Section 6.1 hereof, and
Borrower has no other place of business other than the Property. 
 4.23 Other Debt. There is no indebtedness with respect to
the Property or any excess cash flow or any residual interest therein, whether secured or unsecured, other than Permitted Encumbrances and Permitted Indebtedness. 

4.24 Assignment of Leases and Rents. The Assignment of Leases and Rents creates a valid assignment of, or a valid security
interest in, certain rights under the Leases, subject only to a license granted to Borrower to exercise certain rights and to perform certain obligations of the lessor under the Leases, including the right to operate the Property. No Person other
than Lender has any interest in or assignment of the Leases or any portion of the Rents due and payable or to become due and payable thereunder. 

4.25 Insurance. Borrower has obtained and has delivered to Lender certificates of all of the Policies, with all premiums prepaid
thereunder, reflecting the insurance coverages, amounts and other requirements set forth in this Agreement. No claims have been made under any of the Policies, and no Person, including Borrower, has done, by act or omission, anything which would
impair the coverage of any of the Policies. 
 4.26 FIRPTA. Borrower is not a “foreign person” within the meaning of
Sections 1445 or 7701 of the Code. 
 4.27 Fiscal Year. Each fiscal year of Borrower commences on January 1. 

4.28 Intellectual Property/Websites. Other than as set forth on Schedule 6 attached hereto, neither Borrower nor any
Affiliate (a) has or holds any tradenames, trademarks, servicemarks, logos, copyrights, patents or other intellectual property (collectively, “Intellectual Property”) with respect to the Property or the use or operations
thereof or (b) is the registered holder of any website with respect to the Property (other than Tenant or Franchisor websites). 

4.29 Operations Agreements. Each Operations Agreement is in full force and effect and neither Borrower nor, to Borrower’s
knowledge, any other party to any Operations Agreement, is in default thereunder, and to the best of Borrower’s knowledge, there are no conditions which, with the passage of time or the giving of notice, or both, would constitute a default
thereunder. 
 4.30 Illegal Activity. No portion of the Property has been or will be purchased with proceeds of any illegal
activity. 
 4.31 Operating Lease. The Operating Lease is in full force and effect and has not been modified or amended. There
are no defaults under the Operating Lease and no event has occurred, which with the passage of time, the giving of notice, or both, would constitute a default under the Operating Lease. All rents, additional rents and other sums due and payable
under the Operating Lease have been paid in full. Neither Fee Borrower nor Leasehold Borrower has 

  
 48 

 
commenced any action or given or received any notice for the purpose of terminating the Operating Lease. A memorandum of the Operating Lease has been or shall be duly recorded. The minimum base
rent in the monthly amount of 26% of gross operating income for the Property is currently payable under the Operating Lease together with percentage rent, as set forth in the Operating Lease. Leasehold Borrower is current with respect to, and is
paying the full rent and other charges stipulated in the Operating Lease. 
 4.32 Franchise Agreement. The Franchise Agreement
is in full force and effect, there is no default, breach or violation existing thereunder by Borrower or, to the best of Borrower’s knowledge, the franchisor thereunder, and no event has occurred (other than payments due but not yet delinquent)
that, with the passage of time or the giving of notice, or both, would constitute a default, breach or violation by Borrower or, to Borrower’s knowledge, the franchisor thereunder. 

All of the representations and warranties in this Article 4 and elsewhere in the Loan Documents (i) shall survive for so long as any portion
of the Debt remains owing to Lender and (ii) shall be deemed to have been relied upon by Lender notwithstanding any investigation heretofore or hereafter made by Lender or on its behalf, provided, however, that the
representations, warranties and covenants set forth in Section 4.21 shall survive for a period of three (3) years from the date that the Debt is paid in full, unless Lender, any Affiliate thereof or any other Person acquires title
to the Property (whether at foreclosure sale, a transfer in lieu of foreclosure or any other transfer), in which case the representations, warranties and covenants set forth in Section 4.21 shall survive in perpetuity, unless such
specified event or condition occurs during Lender’s period of ownership and provided that Borrower shall bear the burden of proving that such specified event or condition occurred during Lender’s period of ownership. 

 

	5.	COVENANTS 

 Until the end of the Term, Borrower hereby covenants and agrees with Lender that:

 5.1 Existence. Each of Borrower and Sole Member shall (a) do or cause to be done all things necessary to preserve,
renew and keep in full force and effect its existence, rights, and franchises, (b) continue to engage in the business presently conducted by it, (c) obtain and maintain all Licenses and all applicable governmental authorizations, and
(d) qualify to do business and remain in good standing under the laws of each jurisdiction, in each case as and to the extent required for the ownership, maintenance, management and operation of the Property. 

5.2 Taxes and Other Charges. Borrower shall pay all Taxes and Other Charges as the same become due and payable, and deliver to
Lender receipts for payment or other evidence satisfactory to Lender that the Taxes and the Other Charges have been so paid no later than thirty (30) days before they would be delinquent if not paid (provided,
however, that Borrower need not pay any Real Estate Taxes nor furnish such receipts for payment of such Real Estate Taxes paid by Lender pursuant to Section 3.3 hereof). Borrower shall not suffer and shall promptly cause to
be paid and discharged any Lien or charge against the Property, and shall promptly pay for all utility services provided to the Property. After prior notice to Lender, Borrower, at its own expense, may contest by appropriate legal proceeding,
promptly initiated and conducted in good faith and with due diligence, the amount or validity or application of any Taxes or Other 

  
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Charges, provided that (a) no Event of Default has occurred and is continuing, (b) such proceeding shall be permitted under and be conducted in accordance with all applicable statutes,
laws and ordinances, (c) such proceeding shall suspend the collection of the applicable Taxes or such Other Charges, (d) such proceeding shall be permitted under and be conducted in accordance with the provisions of any other instrument to
which Borrower is subject and shall not constitute a default thereunder, (e) no part of or interest in the Property will be in danger of being sold, forfeited, terminated, canceled or lost, (f) Borrower shall have furnished such security
as may be reasonably required in the proceeding, or as may be requested by Lender, to insure the payment of any such Taxes or Other Charges, together with all interest and penalties thereon, which shall not be less than 115% of the Taxes and Other
Charges being contested (less amounts then being retained in the Tax Subaccount to pay such Taxes so contested), (g) Borrower shall promptly upon final determination thereof pay the amount of such Taxes or Other Charges, together with all
costs, interest and penalties (except to the extent paid from amounts in the Tax Subaccount), (h) such contest shall not affect the ownership, use or occupancy of the Property, and (i) Borrower shall, upon request by Lender, give Lender
prompt notice of the status of such proceedings and/or confirmation of the continuing satisfaction of the conditions set forth in clauses (a) through (h) of this Section 5.2. Lender may pay over any such security
or part thereof held by Lender to the claimant entitled thereto at any time when, in the judgment of Lender, the entitlement of such claimant is established or the Property (or any part thereof or interest therein) shall be in danger of being sold,
forfeited, terminated, cancelled or lost or there shall be any danger of the Lien of the Mortgage being primed by any related Lien. 

5.3 Access to Property. Borrower shall permit agents, representatives, consultants and employees of Lender to inspect the
Property or any part thereof at reasonable hours upon reasonable advance notice (which may be given verbally). Lender or its agents, representatives, consultants and employees as part of any inspection may take soil, air, water, building material
and other samples from the Property, subject to the rights of tenants under Leases and in a manner that complies with the Franchise Agreement. 

5.4 Repairs; Maintenance and Compliance; Alterations. 

5.4.1 Repairs; Maintenance and Compliance. Borrower shall at all times maintain, preserve and protect all franchises and trade
names, and Borrower shall cause the Property to be maintained in a good and safe condition and repair and shall not remove, demolish or alter the Improvements or Equipment (except for alterations performed in accordance with
Section 5.4.2 hereof and normal replacement of Equipment with Equipment of equivalent value and functionality). Borrower shall promptly comply with all Legal Requirements and promptly cure properly any violation of a Legal Requirement.
Borrower shall notify Lender in writing within three (3) Business Days after Borrower first receives notice of any such non-compliance. Borrower shall promptly repair, replace or rebuild any part of the Property that becomes damaged, worn or
dilapidated and shall complete and pay for any Improvements at any time in the process of construction or repair. 
 5.4.2
Alterations. Borrower may, without Lender’s consent, perform alterations to the Improvements and Equipment which (a) do not constitute a Material Alteration, (b) do not adversely affect Borrower’s financial condition
or the value or Net Operating Income of the Property and (c) are in the ordinary course of Borrower’s business. Borrower shall not 

  
 50 

 
perform any Material Alteration without Lender’s prior written consent, which consent shall not be unreasonably withheld or delayed; provided, however, that
Lender may withhold consent to any alteration the cost of which is reasonably estimated to exceed $1,000,000 or which is likely to result in a decrease of Net Operating Income by two and one-half percent (2.5%) or more for a period of thirty
(30) days or longer. In connection with any Material Alteration: (i) at Lender’s election, if the aggregate cost for the Material Alteration is expected to exceed $250,000, (A) Lender shall have received and approved (which
approval shall not be unreasonably withheld or delayed), any general contractor’s agreement, architect’s agreement and the plans and specifications for such work prepared by a licensed architect, in such instances where it is customary to
have such plans and specifications prepared by a licensed architect (e.g., work of a structural nature) and (B) Lender shall have approved (which approval, including as to any reasonable list of proposed general contractors or architects
submitted by Borrower, shall not be unreasonably withheld or delayed) the general contractor and architect retained for such work; (ii) Lender has the right to retain a Construction Consultant to monitor the work in question, and upon the
completion of such Material Alteration Lender shall have received a report from Construction Consultant that all of the work completed has been done substantially in compliance with the approved plans and specifications and applicable Legal
Requirements; and (iii) Lender may, as a condition to giving its consent to a Material Alteration, require that Borrower deliver to Lender security for payment of the cost of such Material Alteration in an amount equal to 125% of the cost of
the Material Alteration as estimated by Lender. Upon substantial completion of the Material Alteration, Borrower shall provide evidence satisfactory to Lender that (A) the Material Alteration was constructed in accordance with applicable Legal
Requirements and substantially in accordance with plans and specifications approved by Lender (which approval shall not be unreasonably withheld or delayed), (B) all contractors, subcontractors, materialmen and professionals who provided work,
materials or services in connection with the Material Alteration have been paid in full and have delivered unconditional releases of liens and (C) all material Licenses necessary for the use, operation and occupancy of the Material Alteration
(other than those which depend on the performance of tenant improvement work) have been issued. Borrower shall reimburse Lender upon demand for all out-of-pocket costs and expenses (including the reasonable fees of Construction Consultant and any
architect, engineer or other professional engaged by Lender) incurred by Lender in reviewing plans and specifications or in making any determinations necessary to implement the provisions of this Section 5.4.2. Notwithstanding the
foregoing, for so long as the Franchise Agreement is in effect, to the extent that Borrower is required to perform Material Alterations pursuant to the Franchise Agreement without Borrower’s prior consent or approval, then Lender’s prior
consent or approval shall not be required in connection with any such Material Alterations. 
 5.5 Performance of Other
Agreements. Borrower shall observe and perform each and every term to be observed or performed by it pursuant to the terms of the Loan Documents. Borrower shall observe and perform each and every material term to be observed or performed by
it pursuant to the terms of any agreement or instrument affecting or pertaining to the Property, the Operating Lease and the Franchise Agreement. 

5.6 Cooperate in Legal Proceedings. Borrower shall cooperate fully with Lender with respect to, and permit Lender, at its
option, and at Borrower’s sole cost and expense, to participate in, any proceedings before any Governmental Authority which may in any way affect the rights of Lender under any Loan Document. 

  
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 5.7 Further Assurances. Borrower shall, at Borrower’s sole cost and expense:
(a) execute and deliver to Lender such documents, instruments, certificates, assignments and other writings, and do such other acts necessary or desirable, to evidence, preserve and/or protect the collateral at any time securing or intended to
secure the Debt and/or for the better and more effective carrying out of the intents and purposes of the Loan Documents, as Lender may reasonably require from time to time; (b) provide all such information as Lender may reasonably require to
ensure Borrower’s ongoing compliance with Sections 5.26 and 5.31 hereof, including ensuring compliance with all “know your customer” procedures as Lender may from time-to-time institute with respect to loans that are of
a similar size and nature as the Loan; and (c) upon Lender’s request therefor given from time to time after the occurrence of any Default or Event of Default pay for (i) reports of UCC, federal tax lien, state tax lien, judgment and
pending litigation searches with respect to Borrower and Sole Member and (ii) searches of title to the Property, each such search to be conducted by search firms reasonably designated by Lender in each of the locations reasonably designated by
Lender. 
 5.8 Environmental Matters. 

5.8.1 Hazardous Substances. So long as Borrower owns or is in possession of the Property, Borrower shall (i) keep
the Property free from Hazardous Substances (other than Routine Hazardous Substances) and in compliance with all Environmental Laws, (ii) promptly notify Lender if Borrower shall become aware that (A) any Hazardous Substance is on or near
the Property, (B) the Property is in violation of any Environmental Laws or (C) any condition on or near the Property shall pose a threat to the health, safety or welfare of humans and (iii) remove such Hazardous Substances and/or
cure such violations and/or remove such threats, as applicable, as required by law (or as shall be required by Lender in the case of removal on the Property which is not required by law, but in response to the opinion of a licensed hydrogeologist,
licensed environmental engineer or other qualified environmental consulting firm engaged by Lender (“Lender’s Consultant”)), promptly after Borrower becomes aware of same, at Borrower’s sole expense. Nothing herein
shall prevent Borrower from recovering such expenses from any other party that may be liable for such removal or cure. 
 5.8.2
Environmental Monitoring. 
 (a) Borrower shall give prompt written notice to Lender of (i) any proceeding or inquiry by any
party (including any Governmental Authority) with respect to the presence of any Hazardous Substance on, under, from or about the Property, (ii) all claims made or threatened by any third party (including any Governmental Authority) against
Borrower or the Property or any party occupying the Property relating to any loss or injury resulting from any Hazardous Substance, and (iii) Borrower’s discovery of any occurrence or condition on any real property adjoining or in the
vicinity of the Property that could cause the Property to be subject to any investigation or cleanup pursuant to any Environmental Law. Upon becoming aware of the presence of mold or fungus at the Property, Borrower shall (A) undertake an
investigation to identify the source(s) of such mold or fungus and shall develop and implement an appropriate remediation plan to eliminate the presence of any Toxic Mold, (B) perform or cause to be

  
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performed all acts reasonably necessary for the remediation of any Toxic Mold (including taking any action necessary to clean and disinfect any portions of the Property affected by Toxic Mold,
including providing any necessary moisture control systems at the Property), and (C) provide evidence reasonably satisfactory to Lender of the foregoing. Borrower shall permit Lender to join and participate in, as a party if Lender so elects,
any legal or administrative proceedings or other actions initiated with respect to the Property in connection with any Environmental Law or Hazardous Substance, and Borrower shall pay all reasonable attorneys’ fees and disbursements incurred by
Lender in connection therewith. 
 (b) Upon Lender’s request, at any time and from time to time (which request shall not be made by
Lender more frequently than one (1) time every two (2) years unless (i) such request is made in connection with a Secondary Market Transaction or (ii) an Event of Default is continuing), Borrower shall provide an inspection or
audit of the Property prepared by a licensed hydrogeologist, licensed environmental engineer or qualified environmental consulting firm approved by Lender assessing the presence or absence of Hazardous Substances on, in or near the Property, and if
a Default or Event of Default has occurred and is continuing, or if Lender determines that reasonable cause exists for the performance of such environmental inspection or audit, then the cost and expense of such audit or inspection shall be paid by
Borrower. Such inspections and audit may include soil borings and ground water monitoring. If Borrower fails to commence any such inspection or audit within thirty (30) days after such request, Lender may order same, and Borrower hereby grants
to Lender and its employees and agents access to the Property and a license to undertake such inspection or audit. 
 (c) If any
environmental site assessment report prepared in connection with such inspection or audit recommends that an operations and maintenance plan be implemented for any Hazardous Substance, whether such Hazardous Substance existed prior to the ownership
of the Property by Borrower, or presently exists or is reasonably suspected of existing, Borrower shall cause such operations and maintenance plan to be prepared and implemented at its expense, and with respect to any Toxic Mold, Borrower shall take
all action necessary to clean and disinfect any portions of the Improvements affected by Toxic Mold in or about the Improvements, including providing any necessary moisture control systems at the Property. If any investigation, site monitoring,
containment, cleanup, removal, restoration or other work of any kind is reasonably necessary under an applicable Environmental Law (“Remedial Work”), Borrower shall commence all such Remedial Work within thirty (30) days
after becoming aware of the same and thereafter diligently prosecute to completion all such Remedial Work within such period of time as may be required under applicable law. All Remedial Work shall be performed by licensed contractors approved in
advance by Lender and under the supervision of a consulting engineer approved by Lender. All costs of such Remedial Work shall be paid by Borrower, including Lender’s reasonable attorneys’ fees and disbursements incurred in connection with
the monitoring or review of such Remedial Work. If Borrower does not timely commence and diligently prosecute to completion the Remedial Work, Lender may (but shall not be obligated to) cause such Remedial Work to be performed at Borrower’s
expense. Notwithstanding the foregoing, Borrower shall not be required to commence such Remedial Work within the above specified time period: (i) if prevented from doing so by any Governmental Authority, (ii) if commencing such Remedial
Work within such time period would result in Borrower or such Remedial Work violating any Environmental Law, or (iii) if Borrower, at its expense and after prior written notice to Lender, is contesting by appropriate

  
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legal, administrative or other proceedings, conducted in good faith and with due diligence, the need to perform Remedial Work. Borrower shall have the right to contest the need to perform such
Remedial Work, provided that, (A) Borrower is permitted by the applicable Environmental Laws to delay performance of the Remedial Work pending such proceedings, (B) neither the Property nor any part thereof or interest therein will be
sold, forfeited or lost if Borrower fails to promptly perform the Remedial Work being contested, and if Borrower fails to prevail in such contest, Borrower would thereafter have the opportunity to perform such Remedial Work, (C) Lender would
not, by virtue of such permitted contest, be exposed to any risk of any civil liability for which Borrower has not furnished additional security as provided in clause (D) below, or to any risk of criminal liability, and neither the
Property nor any interest therein would be subject to the imposition of any Lien for which Borrower has not furnished additional security as provided in clause (D) below, as a result of the failure to perform such Remedial Work and
(D) Borrower shall have furnished to Lender additional security in respect of the Remedial Work being contested and the loss or damage that may result from Borrower’s failure to prevail in such contest in such amount as may be reasonably
requested by Lender but in no event less than 125% of the cost of such Remedial Work as estimated by Lender or Lender’s Consultant and any loss or damage that may result from Borrower’s failure to prevail in such contest. 

(d) Borrower shall not install or permit to be installed on the Property any underground storage tank. 

5.8.3 O & M Program. In the event any environmental report delivered to Lender in connection with the Loan recommends the
development of or continued compliance with an operation and maintenance program for the Property (including with respect to the presence of asbestos and/or lead-based paint) (“O & M Program”), Borrower shall develop
(or continue to comply with, as the case may be) such O & M Program and shall, during the term of the Loan, including any extension or renewal thereof, comply in all material respects with the terms and conditions of the O & M Program. 

5.9 Title to the Property. Borrower will warrant and defend the title to the Property, and the validity and priority of all
Liens granted or otherwise given to Lender under the Loan Documents, subject only to Permitted Encumbrances, against the claims of all Persons. 

5.10 Leases. 

5.10.1 Generally. Upon request, Borrower shall furnish Lender with executed copies of all Leases then in effect. All renewals of
Leases and all proposed leases shall provide for rental rates and terms comparable to existing local market rates and shall be arm’s-length transactions with bona fide, independent third-party tenants.
Borrower shall not enter into any Lease or a renewal, extension or modification of an existing Lease without the prior written consent of Lender, which consent shall not, so long as no Event of Default is continuing, be unreasonably withheld or
delayed. 
 5.10.2 Additional Covenants with respect to Leases. Borrower: (a) shall observe and perform the material
obligations imposed upon the lessor under the Leases and shall not do or permit anything to impair the value of the Leases as security for the Debt; (b) shall 

  
 54 

 
promptly send copies to Lender of all notices of default that Borrower shall send or receive under any Lease; (c) shall enforce, in accordance with commercially reasonable practices for
properties similar to the Property, the terms, covenants and conditions in the Leases to be observed or performed by the lessees, short of termination thereof; (d) shall not collect any of the Rents more than one (1) month in advance
(other than security deposits); (e) shall not execute any other assignment of lessor’s interest in the Leases or the Rents (except as contemplated by the Loan Documents); (f) shall not modify any Lease in a manner inconsistent with
the Loan Documents; (g) shall not convey or transfer or suffer or permit a conveyance or transfer of the Property so as to effect a merger of the estates and rights of, or a termination or diminution of the obligations of, lessees under Leases;
(h) shall not consent to any assignment of or subletting under any Lease unless required in accordance with its terms without the prior consent of Lender, which, with respect to a subletting, may not, so long as no Event of Default is
continuing, be unreasonably withheld or delayed; and (i) shall not cancel or terminate any Lease or accept a surrender thereof without the prior consent of Lender, which consent shall not, so long as no Event of Default is continuing, be
unreasonably withheld or delayed. 
 5.11 Estoppel Statement. (a) After request by Lender, Borrower shall within ten
(10) days furnish Lender with a statement addressed to Lender, its successors and assigns, duly acknowledged and certified, setting forth (i) the unpaid Principal, (ii) the Interest Rate, (iii) the date installments of interest
and/or Principal were last paid, (iv) any offsets or defenses to the payment of the Debt, and (v) that the Loan Documents are valid, legal and binding obligations and have not been modified or if modified, giving particulars of such
modification. 
 (b) Borrower shall deliver to Lender, upon request, estoppel certificates from each party under any Operations Agreement,
in form and substance reasonably satisfactory to Lender; provided, that Borrower shall not be required to deliver such certificates more than three (3) times during the Term and not more frequently than once per calendar year (or
twice during any calendar year in which a Securitization occurs). 
 (c) Borrower shall deliver to Lender, upon request, estoppel
certificates from Franchisor, in form and substance reasonably satisfactory to Lender; provided, that Borrower shall not be required to deliver such certificates more than three (3) times during the Term and not more frequently than once per
calendar year (or twice during any calendar year in which a Securitization occurs). 
 5.12 Property Management. 

5.12.1 Management Agreement. Borrower shall: (i) cause the Property to be managed pursuant to the Management Agreement;
(ii) promptly perform and observe all of the covenants required to be performed and observed by it under the Management Agreement and do all things necessary to preserve and to keep unimpaired its rights thereunder; (iii) promptly notify
Lender of any default under the Management Agreement of which it is aware; (iv) promptly deliver to Lender a copy of each financial statement, business plan, capital expenditure plan, and property improvement plan and any other notice, report
and estimate received by Borrower under the Management Agreement; and (v) promptly enforce the performance and observance of all of the covenants required to be performed and observed by Manager under the Management Agreement. If Borrower shall
default in the performance or observance of any material term, 

  
 55 

 
covenant or condition of the Management Agreement on the part of Borrower to be performed or observed, then, without limiting Lender’s other rights or remedies under this Agreement or the
other Loan Documents, and without waiving or releasing Borrower from any of its obligations hereunder or under the Management Agreement, Lender shall have the right, but shall be under no obligation, to pay any sums and to perform any act as may be
appropriate to cause all the material terms, covenants and conditions of the Management Agreement on the part of Borrower to be performed or observed. Without Lender’s prior written consent, Borrower shall not: (a) surrender, terminate,
cancel, extend or renew the Management Agreement or otherwise replace Manager or enter into any other management agreement (except pursuant to Section 5.12.2 hereof); (b) reduce or consent to the reduction of the term of the
Management Agreement; (c) increase or consent to the increase of the amount of any charges under the Management Agreement; (d) otherwise modify, change, supplement, alter or amend in any material respect, or waive or release any of its
rights and remedies under, the Management Agreement; (e) suffer or permit the occurrence and continuance of a default beyond any applicable cure period under the Management Agreement (or any successor management agreement) if such default
permits Manager to terminate the Management Agreement (or such successor management agreement); or (f) suffer or permit the ownership, management or control of Manager to be transferred to a Person other than an Affiliate of Borrower. 

5.12.2 Termination of Manager. If: (a) as of any Calculation Date, Borrower fails to maintain a Debt Yield of at least
8.50% (unless such failure is due solely to a short-term decline in Net Operating Income resulting from renovations to the Property required by Franchisor); (b) an Event of Default shall be continuing; (c) Manager is in default under the
Management Agreement; (d) Manager shall become a debtor in any bankruptcy or insolvency proceeding; or (e) upon the gross negligence, malfeasance or willful misconduct of Manager, Borrower shall, at the request of Lender, terminate the
Management Agreement and replace Manager with a replacement manager acceptable to Lender and, if a Securitization has occurred, the applicable Rating Agencies, on terms and conditions satisfactory to Lender and, if a Securitization has occurred, the
applicable Rating Agencies. All calculations of the Debt Yield for purposes of this Section 5.12.2 shall be subject to verification by Lender. Borrower’s failure to appoint an acceptable manager within forty five (45) days
after Lender’s request of Borrower to terminate the Management Agreement shall constitute an immediate Event of Default. Borrower may from time to time appoint a successor manager to manage the Property, provided that such successor manager and
Management Agreement shall be approved in writing by Lender and, if a Securitization has occurred, the applicable Rating Agencies (and Lender’s approval may be conditioned upon Borrower delivering a Rating Comfort Letter if the Loan, by itself
or together with other loans, has been the subject of a Secondary Market Transaction, and if required pursuant to a Pooling and Servicing Agreement from and after the occurrence of a Secondary Market Transaction). Notwithstanding the foregoing,
however, provided no Event of Default is continuing, (a) the approval of Lender and the Rating Agencies shall not be required with respect to the appointment of a Qualified Manager and (b) upon the occurrence of a Condor Change of Control
Event, Borrower may terminate the Management Agreement and replace the Manager with a Qualified Manager so long as such new Qualified Manager is in place prior to or concurrently with the termination of the prior Manager. If at any time Lender
consents to the appointment of a new manager or a Qualified Manager is appointed, such new manager (including any Qualified Manager) and Borrower shall, as a condition of Lender’s consent, execute (a) a management agreement in form and
substance reasonably acceptable to Lender and 

  
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(b) a consent and subordination of management agreement substantially in the form of the Manager Consent, or as otherwise approved by Lender in its reasonable discretion. In addition, if any
new manager (including a Qualified Manager) is an Affiliate of Borrower, Borrower shall deliver to Lender a new substantive non-consolidation opinion letter in which Borrower is “paired” with such new manager. 

5.13 Special Purpose Bankruptcy Remote Entity. Borrower shall at all times be a Special Purpose Bankruptcy Remote Entity.
Borrower shall not directly or indirectly make any change, amendment or modification to its organizational documents, or otherwise take any action which could result in Borrower not being a Special Purpose Bankruptcy Remote Entity. A
“Special Purpose Bankruptcy Remote Entity” shall have the meaning set forth on Schedule 5 hereto. 

5.14 Assumption in Non-Consolidation Opinion. Borrower shall conduct its business so that the assumptions (with respect to each
Person) made in that certain substantive non-consolidation opinion letter dated the date hereof delivered by Borrower’s counsel in connection with the Loan, shall be true and correct in all material respects. 

5.15 Change in Business or Operation of Property. Borrower shall not purchase or own any real property other than the Property
and shall not enter into any line of business other than the ownership and operation of the Property, or make any material change in the scope or nature of its business objectives, purposes or operations, or undertake or participate in activities
other than the continuance of its present business or otherwise cease to operate the Property as a hotel or terminate such business for any reason whatsoever (other than temporary cessation in connection with renovations to the Property). 

5.16 Debt Cancellation. Borrower shall not cancel or otherwise forgive or release any claim or debt (other than termination of
Leases in accordance herewith) owed to Borrower by any Person, except for adequate consideration and in the ordinary course of Borrower’s business. 

5.17 Affiliate Transactions. Borrower shall not enter into, or be a party to, any transaction with an Affiliate of Borrower or
any of the direct or indirect legal or beneficial owners of Borrower without the prior written consent of Lender, which consent shall not be unreasonably withheld if the terms are substantially similar to those that would be obtained in a comparable
arm’s-length transaction with an unrelated third party. Lender acknowledges that Lender has reviewed and approved the terms of the Management Agreement. 

5.18 Zoning. Borrower shall not initiate or consent to any zoning reclassification of any portion of the Property or seek any
variance under any existing zoning ordinance or use or permit the use of any portion of the Property in any manner that could result in such use becoming a non-conforming use under any zoning ordinance or any
other applicable land use law, rule or regulation, without the prior consent of Lender; provided, however, that Borrower may join in any application to facilitate the terms of the Option Agreement. 

5.19 No Joint Assessment. Borrower shall not suffer, permit or initiate the joint assessment of the Property (a) with any
other real property constituting a tax lot separate from the Property and (b) with any portion of the Property which may be deemed to constitute personal property, or any other procedure whereby the lien of any taxes which may be levied against
such personal property shall be assessed or levied or charged to the Property. 

  
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 5.20 Principal Place of Business. Borrower shall not change its principal place of
business or chief executive office from the address set forth in Section 6.1 hereof without first giving Lender thirty (30) days’ prior written notice. 

5.21 Change of Name, Identity or Structure. Borrower shall not change its name, identity (including its trade name or names) or
Borrower’s corporate, partnership or other structure without notifying Lender of such change in writing at least thirty (30) days prior to the effective date of such change and, in the case of a change in Borrower’s structure, without
first obtaining the prior written consent of Lender, which consent, may be conditioned upon receipt of an updated substantive non-consolidation opinion (if Lender reasonably determines that the same is necessary as a result of Borrower’s new
structure). Borrower shall execute and deliver to Lender, prior to or contemporaneously with the effective date of any such change, any financing statement or financing statement change required by Lender to establish or maintain the validity,
perfection and priority of the security interest granted herein. At the request of Lender, Borrower shall execute a certificate in form satisfactory to Lender listing the trade names under which Borrower intends to operate the Property, and
representing and warranting that Borrower does business under no other trade name with respect to the Property. 
 5.22
Indebtedness. Borrower shall not directly or indirectly create, incur or assume any indebtedness other than (a) the Debt, (b) unsecured trade payables incurred in the ordinary course of business relating to the ownership and
operation of the Property and (c) Permitted Equipment Financing (hereinafter defined), which in the case of such unsecured trade payables and Permitted Equipment Financing (i) are not evidenced by a note, (ii) do not exceed, at any
time, a maximum aggregate amount of three percent (3%) of the original amount of the Principal and (iii) are paid within thirty (30) days of the date incurred (collectively, “Permitted Indebtedness”). As used
herein, “Permitted Equipment Financing” means equipment financing that (A) is entered into in the ordinary course of Borrower’s business, (B) for equipment related to the ownership and operation of the Property
whose removal would not materially damage or impair the value of the Property, and (C) which is secured only by the financed equipment. 

5.23 Licenses; Intellectual Property; Website.  

5.23.1 Licenses. Borrower shall not Transfer any License required for the operation of the Property. 

5.23.2 Intellectual Property. Borrower shall keep and maintain all Intellectual Property owned by Borrower relating to the use
or operation of the Property and all Intellectual Property owned by Borrower shall be held by and (if applicable) registered in the name of Borrower. Borrower shall not Transfer or let lapse any Intellectual Property owned by Borrower without
Lender’s prior consent. 
 5.23.3 Website. Any website with respect to the Property (other than tenant websites and any
websites maintained or owned by Franchisor) shall be maintained by or on 

  
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behalf of Borrower and any such website shall be registered in the name of Borrower. Borrower shall not Transfer any such website without Lender’s prior consent. 

5.24 Compliance with Restrictive Covenants. Borrower shall at all times comply in all material respects with all Operations
Agreements. Borrower will not enter into, modify, waive in any material respect or release any Easements, Operations Agreements or other Permitted Encumbrances, or suffer, consent to or permit the foregoing, without Lender’s prior written
consent. 
 5.25 ERISA. 

(a) Neither Borrower nor Guarantor shall engage in any transaction which would cause any obligation, or action taken or to be taken, hereunder
(or the exercise by Lender or any assignee of any of its rights under the Note, this Agreement or the other Loan Documents) to be a non-exempt (under a statutory or administrative class exemption) prohibited transaction under ERISA or
Section 4975 of the Code. 
 (b) Borrower’s and Guarantor’s covenant in clause (a) above is based on the
assumption that no portion of the assets used by Lender in connection with the transactions contemplated under this Agreement and the other Loan Documents constitutes assets of a “benefit plan investor” as defined in
Section 3(42) of ERISA and with respect to which Borrower or Guarantor is a party in interest (as defined in Section 3(14) of ERISA) or a disqualified person (as defined in Section 4975 of the Code) unless the conditions of an
available prohibited transaction exemption are satisfied. 
 (c) Neither Borrower nor Guarantor shall permit the assets of Borrower or
Guarantor to become “plan assets,” within the meaning of 29 C.F.R. 2510.3-101, as modified in application by Section 3(42) of ERISA. 

(d) Borrower shall deliver to Lender such certifications or other evidence from time to time throughout the Term, as requested by Lender,
that: (i) neither Borrower nor Guarantor is or maintains a “governmental plan” within the meaning of Section 3(32) of ERISA; (ii) neither Borrower nor Guarantor is subject to state statutes regulating investments and
fiduciary obligations with respect to governmental plans; and (iii) neither the assets of Borrower nor Guarantor constitute “plan assets” within the meaning of 29 C.F.R. Section 2510.3-101, as modified in application by
Section 3(42) of ERISA of any “benefit plan investor” as defined in Section 3(42) of ERISA. 
 (e) Borrower and
Guarantor shall not (i) permit any ERISA Event to occur, and (ii) if the employees at the Properties are employed by a manager other than the Borrower or an ERISA Affiliate, incur any liability or obligation with respect to withdrawal or
partial withdrawal from a Multiemployer Plan or termination of a plan subject to Title IV of ERISA, whether by reason of indemnification or other contractual agreement with such manager. With for which Borrower, Guarantor or any ERISA Affiliate has
an obligation to make contributions, within the meaning of Section 101(l) of ERISA (a “Contributing Employer”), within 30 days following the applicable Multiemployer Plan’s year end, if Lender so requests Borrower to do so,
Borrower shall request, or cause to be requested, in accordance with Section 101(1)(1) of 

  
 59 

 
ERISA, that the plan sponsor or administrator of the applicable Multiemployer Plan provide: (i) an estimate of the amount of the withdrawal liability under Part 1 of Subtitle E of Title IV
of ERISA if the Contributing Employer were to have completely withdrawn from the applicable Multiemployer Plan on the last day of the plan year preceding the date of the request; and (ii) an explanation of how such estimated withdrawal
liability amount was determined, including the actuarial assumptions and methods used to determine the value of the Multiemployer Plan’s liabilities and assets, the data regarding employer contributions, unfunded vested benefits, annual changes
in the Multiemployer Plan’s unfunded vested benefits and the application of any relevant limitations on the estimated withdrawal liability amount. As soon as available, and in any event within 10 days after the receipt from the plan
sponsor or administrator of the applicable Multiemployer Plan, Borrower shall provide Lender with the information received from the Multiemployer Plan pursuant to the estimated withdrawal liability request described in the preceding sentence. As
reasonably requested by Lender, Borrower shall promptly provide Lender with a copy of the most recent plan funding notice (if any) issued to each Contributing Employer pursuant to Section 101(f) of ERISA by a plan sponsor or administrator of a
Multiemployer Plan. 
 (f) As soon as practicable, and in any event within 10 days after the occurrence thereof, (i) Borrower
shall provide Lender with notice of the occurrence of any ERISA Event (or, to Borrower’s knowledge, the occurrence with respect to a unaffiliated third-party property manager engaged by Borrower of an event that would constitute an ERISA Event
if it occurred to an Employee Plan, provided that Borrower has an obligation to indemnify such manager in respect of such event) and (ii) if the employees at the Properties are employed by a manager other than the Borrower or an ERISA
Affiliate, Borrower shall provide Lender with notice of any event relating to any Multiemployer Plan or plan subject to Title IV of ERISA, of which it knows or should have known. 

5.26 Prohibited Transfers. Borrower shall not directly or indirectly make, suffer or permit the occurrence of any Transfer other
than a Permitted Transfer. Borrower shall provide Lender with copies of all organizational documents (if any) relating to any Permitted Transfer (except with respect to Transfers of direct or indirect interests in SP Spring Hotel LLC). Borrower
shall pay on demand all of the reasonable costs and expenses incurred by Lender, including reasonable attorneys’ fees and expenses, and, if a Securitization has occurred, including the fees and expenses of Rating Agencies and other outside
entities, in connection with considering any proposed Transfer, whether or not the same is permitted or occurs. 
 5.27 Liens.
Without Lender’s prior written consent, Borrower shall not create, incur, assume, permit or suffer to exist any Lien on all or any portion of the Property or any direct or indirect legal or beneficial ownership interest in Borrower or Sole
Member, except Liens in favor of Lender and Permitted Encumbrances, unless such Lien is bonded or discharged within sixty (60) days after Borrower first receives notice of such Lien. 

5.28 Dissolution. Borrower shall not (a) engage in any dissolution, liquidation or consolidation or merger with or into any
other business entity, (b) engage in any business activity not related to the ownership and operation of the Property or (c) transfer, lease or sell, in one transaction or any combination of transactions, all or substantially all of the
property or assets of Borrower except to the extent expressly permitted by the Loan Documents. 

  
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 5.29 Expenses. 

(a) Borrower shall pay or, if Borrower fails to pay, reimburse Lender upon receipt of notice from Lender for all reasonable unaffiliated third
party out-of-pocket costs and expenses (including reasonable attorneys’ fees and disbursements) incurred by Lender or Servicer in connection with the Loan, including: (i) the preparation, negotiation, execution and delivery of the Loan
Documents and the consummation of the transactions contemplated thereby and all the costs of furnishing all opinions by counsel for Borrower; (ii) Borrower’s and Lender’s ongoing performance under and compliance with the Loan
Documents, including confirming compliance with environmental and insurance requirements; (iii) the negotiation, preparation, execution, delivery and administration of any consents, amendments, waivers or other modifications of or under any
Loan Document and any other documents or matters requested by Lender or Borrower; (iv) filing and recording of any Loan Documents; (v) title insurance, surveys, inspections and appraisals; (vi) the creation, perfection or protection
of Lender’s Liens in the Property and the Cash Management System Accounts (including fees and expenses for title and lien searches, intangibles taxes, personal property taxes, mortgage recording taxes, due diligence expenses, travel expenses,
accounting firm fees, costs of appraisals, environmental reports and Lender’s Consultant, surveys and engineering reports); (vii) enforcing or preserving any rights in response to third party claims or the prosecuting or defending of any
action or proceeding or other litigation, in each case against, under or affecting Borrower, the Loan Documents, the Property, or any other security given for the Loan; (viii) investigating, preparing, defending, settling, compromising,
responding to, or enforcing or preserving any rights in response to any claim, action, suit, proceeding, investigation, prosecution, subpoena, or request for documents or other evidence under or affecting Borrower, the Loan Documents, the Property,
or any other security given for the Loan, whether or not in connection with an action in which Borrower is the named party; (ix) fees charged by Servicer or, if a Securitization has occurred, the Rating Agencies in connection with the Loan or
any modification thereof; and (x) enforcing any obligations of or collecting any payments due from Borrower under any Loan Document or with respect to the Property or in connection with any refinancing or restructuring of the Loan in the nature
of a “work-out”, or any insolvency or bankruptcy proceedings. 
 (b) In addition, in connection with any Rating Comfort Letter,
Review Waiver or other Rating Agency consent, approval or review requested or required hereunder (other than the initial review of the Loan by the Rating Agencies in connection with a Securitization), Borrower shall pay all of the reasonable costs
and expenses of Lender and Servicer and the costs and expenses of each Rating Agency in connection therewith, and, if applicable, shall pay any fees imposed by any Rating Agency in connection therewith. 

(c) Any costs and expenses due and payable by Borrower hereunder which are not paid by Borrower within ten (10) Business Days after
demand may be paid from any amounts in the Cash Management Account, with notice thereof to Borrower. The obligations and liabilities of Borrower under this Section 5.29 shall survive the Term and the exercise by Lender of any of its
rights or remedies under the Loan Documents, including the acquisition of the Property by foreclosure or a conveyance in lieu of foreclosure. 

5.30 Indemnity. Borrower shall defend, indemnify and hold harmless Lender (and for purposes of this Section 5.30,
Lender shall include LoanCore, its Affiliates, successors and 

  
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assigns, and their respective officers and directors) and each of its Affiliates and their respective successors and assigns, including the directors, officers, partners, members,
shareholders, participants, employees, professionals and agents of any of the foregoing (including any Servicer) and each other Person, if any, who Controls Lender, its Affiliates or any of the foregoing (each, an “Indemnified
Party”), from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, claims, costs, expenses and disbursements of any kind or nature whatsoever (including the reasonable fees and
disbursements of counsel for an Indemnified Party in connection with any investigative, administrative or judicial proceeding commenced or threatened, whether or not Lender shall be designated a party thereto, court costs and costs of appeal at all
appellate levels, investigation and laboratory fees, consultant fees and litigation expenses), that may be imposed on, incurred by, or asserted against any Indemnified Party (collectively, the “Indemnified Liabilities”) in
any manner, relating to or arising out of or by reason of the Loan, including: (a) any breach by Borrower of its obligations under, or any misrepresentation by Borrower contained in, any Loan Document; (b) the use or intended use of the
proceeds of the Loan; (c) any information provided by or on behalf of Borrower, or contained in any documentation approved by Borrower; (d) the ownership of the Mortgage, the Property or any interest therein, or receipt of any Rents;
(e) any accident, injury to or death of persons or loss of or damage to property occurring in, on or about the Property or on the adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets or ways; (f) any use,
non-use or condition in, on or about the Property or on adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets or ways; (g) performance of any labor or services or the furnishing of any materials or other property in
respect of the Property; (h) the presence, disposal, escape, seepage, leakage, spillage, discharge, emission, release, or threatened release of any Hazardous Substance on, from or affecting the Property; (i) any personal injury (including
wrongful death) or property damage (real or personal) arising out of or related to such Hazardous Substance; (j) any lawsuit brought or threatened, settlement reached, or government order relating to such Hazardous Substance; (k) any
violation of the Environmental Laws which is based upon or in any way related to such Hazardous Substance, including the costs and expenses of any Remedial Work; (l) any failure of the Property to comply with any Legal Requirement; (m) any
claim by brokers, finders or similar persons claiming to be entitled to a commission in connection with any Lease or other transaction involving the Property or any part thereof, or any liability asserted against Lender with respect thereto;
(n) the claims of any lessee of any portion of the Property or any Person acting through or under any lessee or otherwise arising under or as a consequence of any Lease; (o) enforcing or preserving any rights in response to third party
claims or the prosecuting or defending of any action or proceeding or other litigation, in each case against, under or affecting Borrower, the Loan Documents, the Property, or any other security given for the Loan; and (p) investigating,
preparing, defending, settling, compromising, responding to, or enforcing or preserving any rights in response to any claim, action, suit, proceeding, investigation, prosecution, subpoena, or request for documents or other evidence under or
affecting Borrower, the Loan Documents, the Property, or any other security given for the Loan, whether or not in connection with an action in which Borrower is the named party; provided,
however, that Borrower shall not have any obligation to any Indemnified Party hereunder to the extent that it is finally judicially determined that such Indemnified Liabilities arise from the gross
negligence, illegal acts, fraud or willful misconduct of such Indemnified Party. Any amounts payable to any Indemnified Party by reason of the application of this paragraph shall be payable on demand and shall bear interest at the Default Rate from
the date  

  
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 loss or damage is sustained by any Indemnified Party until paid. The obligations and liabilities of Borrower
under this Section 5.30 shall survive the Term and the exercise by Lender of any of its rights or remedies under the Loan Documents, including the acquisition of the Property by foreclosure or a conveyance in lieu of foreclosure.
Notwithstanding the foregoing, however, Borrower shall not be obligated to indemnify any Indemnified Party for any event or condition that first arises on or after the date on which Lender (or its transferee) acquires title or control of the
Property (whether at foreclosure sale, conveyance in lieu of foreclosure or similar transfer) or after a receiver has been appointed for the Property; provided that Borrower’s obligation to indemnify the Indemnified Parties with
respect to an event or condition specified in clauses (h) through (k) above (relating to Hazardous Substances) shall continue in perpetuity after Lender (or its transferee) acquires title or control of the Property unless such specified
event or condition occurs during Lender’s period of ownership and provided that Borrower shall bear the burden of proving that such specified event or condition occurred during Lender’s period of ownership. Notwithstanding the foregoing,
the indemnification obligations of Borrower with respect to an event or condition specified in clauses (h) through (k) above (relating to Hazardous Substances) shall terminate three (3) years after the full and indefeasible payment by
Borrower of the Debt provided that at the time of such payment Borrower furnishes to the Indemnified Parties an updated environmental report in form and substance, and from an environmental consultant, reasonably acceptable to the Indemnified
Parties, which updated environmental report discloses, as of the date of such repayment, no actual or threatened: (A) non-compliance with or violation of applicable Environmental Laws (or permits issued pursuant to Environmental Laws) in
connection with the Property or operations thereon, which has not been cured in accordance with applicable Environmental Laws, (B) environmental Liens encumbering the Property, (C) administrative processes or proceedings or judicial
proceedings concerning any environmental matter addressed in this Agreement, or (D) unlawful presence or Release of Hazardous Substances in, on, above or under the Property that has not been fully remediated as required by applicable
Environmental Laws. For purposes of the preceding sentence, (i) payment of the Debt shall not be deemed to have occurred if Lender or any Affiliate thereof acquires title to the Property through the exercise of remedies (whether at foreclosure
sale, a Transfer in lieu of foreclosure or any other Transfer) and (ii) to the extent a third party suit, proceeding, or claim has been instituted or commenced prior to the termination date set forth in the foregoing sentence, this Agreement
shall remain in full force and effect with respect to any such suit, proceeding, or claim (with respect to which Indemnitor has any obligation pursuant to this Agreement) until the completion of any such suits, proceedings or claims, including,
without limitation, the payment by Borrower of any amounts which are due and payable under this Agreement in connection with such suits, proceedings or claims. 

5.31 Patriot Act Compliance. 

(a) Borrower will use its good faith and commercially reasonable efforts to comply with the Patriot Act (as defined below) and all applicable
requirements of Governmental Authorities having jurisdiction over Borrower and/or the Property, including those relating to money laundering and terrorism. Lender shall have the right, from time to time, to audit Borrower’s compliance with the
Patriot Act and all applicable requirements of Governmental Authorities having jurisdiction over Borrower and/or the Property, including those relating to money laundering and terrorism. In the event that Borrower fails to comply with the Patriot
Act or any such requirements of Governmental Authorities, then Lender may, at its option, cause 

  
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Borrower to comply therewith and any and all reasonable costs and expenses incurred by Lender in connection therewith shall be secured by the Mortgage and the other Loan Documents and shall be
immediately due and payable. For purposes hereof, the term “Patriot Act” means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (USA PATRIOT ACT) of 2001,
as the same was restored and amended by Uniting and Strengthening America by Fulfilling Rights and Ensuring Effective Discipline Over Monitoring Act (USA FREEDOM Act) of 2015 and as the same may be further amended, extended, replaced or otherwise
modified from time to time, and any corresponding provisions of future laws. 
 (b) Neither Borrower nor any partner in Borrower or member
of such partner nor any owner of ten percent (10%) or more of a direct or indirect interest in Borrower, or to Borrower’s knowledge, any owner of less than ten percent (10%) of a direct or indirect interest in Borrower (i) is listed on any
Government Lists (as defined below), (ii) is a person who has been determined by competent authority to be subject to the prohibitions contained in Presidential Executive Order No. 13224 (Sept. 23, 2001) or any other similar prohibitions
contained in the rules and regulations of OFAC (as defined below) or in any enabling legislation or other Presidential Executive Orders in respect thereof, (iii) has been previously indicted for or convicted of any felony involving a crime or
crimes of moral turpitude or for any Patriot Act Offense (as defined below), or (iv) is currently under investigation by any Governmental Authority for alleged criminal activity. For purposes hereof, the term “Patriot Act
Offense” means any violation of the criminal laws of the United States of America or of any of the several states, or that would be a criminal violation if committed within the jurisdiction of the United States of America or any of the
several states, relating to terrorism or the laundering of monetary instruments, including any offense under: (A) the criminal laws against terrorism; (B) the criminal laws against money laundering; (C) the Bank Secrecy Act, as
amended; (D) the Money Laundering Control Act of 1986, as amended, or the (E) Patriot Act. “Patriot Act Offense” also includes the crimes of conspiracy to commit, or aiding and abetting another to commit, a Patriot
Act Offense. For purposes hereof, the term “Government Lists” means (1) the Specially Designated Nationals and Blocked Persons Lists maintained by the Office of Foreign Assets Control (“OFAC”),
(2) any other list of terrorists, terrorist organizations or narcotics traffickers maintained pursuant to any of the Rules and Regulations of OFAC that Lender notified Borrower in writing is now included in “Government Lists”, or
(3) any similar lists maintained by the United States Department of State, the United States Department of Commerce or any other government authority or pursuant to any Executive Order of the President of the United States of America that
Lender notified Borrower in writing is now included in “Government Lists”. 
 (c) At all times throughout the term of the Loan,
including after giving effect to any Transfers permitted pursuant to the Loan Documents, (i) none of the funds or other assets of Borrower, Key Principal or Guarantor shall constitute property of, or shall be beneficially owned, directly or
indirectly, by any Person subject to trade restrictions under United States law, including the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701 et seq., The Trading with the Enemy Act, 50 U.S.C. App. 1 et
seq., and any Executive Orders or regulations promulgated thereunder, with the result that the investment in Borrower, Key Principal or Guarantor, as applicable (whether directly or indirectly), would be prohibited by law (each, an
“Embargoed Person”), or the Loan made by Lender would be in violation of law, (ii) no Embargoed Person shall have any interest of any nature whatsoever in Borrower, Key Principal

  
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or Guarantor, as applicable, with the result that the investment in Borrower, Key Principal or Guarantor, as applicable (whether directly or indirectly), would be prohibited by law or the Loan
would be in violation of law, and (iii) none of the funds of Borrower, Key Principal or Guarantor, as applicable, shall be derived from any unlawful activity with the result that the investment in Borrower, Key Principal or Guarantor, as
applicable (whether directly or indirectly), would be prohibited by law or the Loan would be in violation of law. 
 5.32 Approval of
Major Contracts. Borrower shall not, without Lender’s prior consent: (a) enter into, surrender or terminate any Major Contract to which it is a party or to which Borrower or the Property is subject (unless the other party thereto
is in material default and the termination of such agreement would be commercially reasonable); (b) increase or consent to the increase of the amount of any charges under any Major Contract to which it is a party or to which Borrower or the
Property is subject, except as provided therein or on an arm’s-length basis and commercially reasonable terms; or (c) otherwise modify, change, supplement, alter or amend, or waive or release any of its rights and remedies under any Major
Contract to which it is a party or to which Borrower or the Property is subject in any material respect, except on an arm’s-length basis and commercially reasonable terms. 

5.33 Operating Lease. Each of Fee Borrower and Leasehold Borrower shall (i) promptly perform and observe all of the
covenants required to be performed and observed by it under the Operating Lease and do all things necessary to preserve and to keep unimpaired its material rights thereunder; (ii) promptly notify Lender of any default under the Operating Lease
of which it is aware; (iii) promptly deliver to Lender a copy of each financial statement, business plan, capital expenditures plan, notice, report and estimate received or sent by it under the Operating Lease; and (iv) promptly enforce in
accordance with commercially reasonable practices the performance and observance of all of the covenants required to be performed and observed by it under the Operating Lease. Without Lender’s prior consent, neither Fee Borrower nor Leasehold
Borrower shall (i) surrender, terminate or cancel the Operating Lease; (ii) reduce or consent to the reduction of the term of the Operating Lease; (iii) increase or consent to the increase of the amount of any charges under the
Operating Lease in any material respect, except as may be required to comply with Legal Requirements applicable to a real estate investment trust, provided that rent under the Operating Lease shall be “market rent” in accordance with real
estate investment trust rules and regulations; (iv) otherwise modify, change, supplement, alter or amend, or waive or release any of its rights and remedies under, the Operating Lease or (v) suffer or permit the occurrence of continuance a
default beyond any applicable cure period under the Operating Lease if such default permits any party thereto to terminate or cancel such Operating Lease. 

5.34 Franchise Agreement and Hotel Covenants. 

(a) Borrower shall: (i) cause the hotel located on the Property to be operated pursuant to the Franchise Agreement; (ii) promptly
perform and observe all of the covenants required to be performed and observed by it under the Franchise Agreement in all material respects and do all things necessary to preserve and to keep unimpaired its material rights thereunder;
(iii) promptly notify Lender of any default under the Franchise Agreement of which 

  
 65 

 
it is has received written notice; (iv) promptly deliver to Lender a copy of each material financial statement, business plan, capital expenditures plan, notice, report and estimate received
by it under the Franchise Agreement; and (v) promptly enforce the performance and observance of all of the covenants required to be performed and observed by the franchisor under the Franchise Agreement in all material respects. 

(b) Borrower shall not without Lender’s prior consent: (i) surrender, terminate or cancel the Franchise Agreement; (ii) reduce
or consent to the reduction of the term of the Franchise Agreement; (iii) increase or consent to the increase of the amount of any charges under the Franchise Agreement; (iv) otherwise modify, change, supplement, alter or amend, or waive
or release any of its rights and remedies under, the Franchise Agreement; or (v) suffer or permit the occurrence of continuance a default beyond any applicable cure period under the Franchise Agreement (or any successor franchise agreement) if
such default permits the franchisor to terminate or cancel the Franchise Agreement (or any successor franchise agreement). 
 (c) Without in
any way limiting the covenants set forth elsewhere in the Loan Documents, Borrower shall: (i) cause the hotel located on the Property to be operated, repaired and maintained as a well-maintained “first-class hotel” which shall mean a
hotel providing amenities, services and facilities substantially equivalent or superior to hotels of similar average room rate and targeted market segment from time to time operating in the same or comparable geographic area of the Property, taking
into consideration the age and location of the hotel located on the Property; and (ii) maintain Inventory in amounts sufficient to meet the hotel industry standard for hotels comparable to the hotel located on the Property and at levels
sufficient for the operation of the hotel located on the Property at full occupancy levels. 
  

	6.	NOTICES AND REPORTING 

 6.1 Notices. All notices, consents,
approvals and requests required or permitted hereunder or under any other Loan Document (a “Notice”) shall be given in writing (even if not specified herein) and shall only be effective for all purposes if either hand
delivered with receipt acknowledged, or by a nationally recognized overnight delivery service (such as Federal Express), or by certified or registered United States mail, return receipt requested, postage prepaid, or by facsimile and confirmed by
facsimile answer back, or e-mailed (with confirmation of delivery thereof) to the e-mail addresses for Lender to the extent set forth in this Section 6.1 with a subject line identifying the purpose of such Notice and the name of the
Property and Borrower; in each case addressed as follows (or to such other address or Person as a party shall designate from time to time by notice to the other party): 

If to Lender: 

LoanCore Capital Credit REIT LLC 

c/o LoanCore Capital 

55 Railroad Avenue, Suite 100 

Greenwich, Connecticut 06830 

Attention: Brett Kaplan 

Facsimile No.: (203) 861-6006 

E-mail: BKaplan@LoanCoreCapital.com 

  
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 with a copy to: 

LoanCore Capital Credit REIT LLC 

c/o LoanCore Capital 

55 Railroad Avenue, Suite 100 

Greenwich, Connecticut 06830 

Attention: Notices 

E-mail: notices@loancorecapital.com 

with a copy to: 

Kaye Scholer LLP 

250 West 55th Street 

New York, New York 10019-9710 

Attention: Stephen Gliatta, Esq. 

Facsimile No.: (212) 836-8689 

Email: steve.gliatta@kayescholer.com 

If to Borrower: 

40 West 57th Street,
29th Floor 
 New York, New York 10019 

Attention: Alan Kanders 

Facsimile No.:
                         

with a copy to: 

Herrick, Feinstein LLP 

Two Park Avenue 

New York, New York 10016 

Attention: Paul Shapses, Esq. 

Facsimile No.: (212) 545-3443 

and to: 
 Condor
Hospitality Trust, Inc. 
 4800 Montgomery Lane, Suite 220 

Bethesda, Maryland 20814 

Attention: Jonathan J. Gantt, CFO and SVP 

Facsimile No.: (402) 371-4229 

and to: 
 Jeffer
Mangels Butler & Mitchell LLP 
 1900 Avenue of the Stars, 7th
Floor 
 Los Angeles, California 90067 

Attention: Jeffrey E. Steiner, Esq. 

Facsimile No.: (310) 712-8514 

  
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 A notice shall be deemed to have been given: (a) in the case of hand delivery, at the time of delivery;
(b) in the case of registered or certified mail, when delivered or the first attempted delivery on a Business Day; (c) in the case of overnight delivery, upon the first attempted delivery on a Business Day; (d) in the case of
facsimile, upon the confirmation of delivery of such facsimile transmission; or (e) in the case of e-mail, upon the confirmation of delivery such e-mail. 

6.2 Borrower Notices and Deliveries. Borrower shall: (a) give prompt written notice to Lender of: (i) any litigation,
governmental proceedings or claims or investigations pending or threatened against Borrower or Sole Member which might materially adversely affect Borrower’s or Sole Member’s condition (financial or otherwise) or business or the Property;
(ii) any Material Adverse Effect, or of the occurrence of any Default or Event of Default of which Borrower has knowledge; and (b) furnish and provide to Lender: (i) any Securities and Exchange Commission or other public filings, if
any, of Borrower, Sole Member or Manager within two (2) Business Days of such filing; and (ii) all instruments, documents, boundary surveys, footing or foundation surveys, certificates, plans and specifications, appraisals, title and other
insurance reports and agreements, reasonably requested, from time to time, by Lender, to the extent in Borrower’s possession or reasonable control. In addition, after written request by Lender (but no more frequently than twice in any year),
Borrower shall furnish to Lender (A) within ten (10) days, a certificate addressed to Lender, its successors and assigns reaffirming all representations and warranties of Borrower set forth in the Loan Documents as of the date requested by
Lender or, to the extent of any changes to any such representations and warranties, so stating such changes, and (B) within thirty (30) days, tenant estoppel certificates addressed to Lender, its successors and assigns from each tenant at
the Property in form and substance reasonably satisfactory to Lender. 
 6.3 Financial Reporting. 

6.3.1 Bookkeeping. Borrower shall keep on a calendar year basis, in accordance with GAAP and USALI (provided that,
in addition to GAAP compliant statements, Borrower shall prepare statements adjusted to show actual rents as scheduled to be received and not straight-lined), proper and accurate books, records and accounts reflecting all of the financial affairs of
Borrower and all items of income and expense and any services, Equipment or furnishings provided in connection with the operation of the Property, whether such income or expense is realized by Borrower, Manager or any Affiliate of Borrower. Lender
shall have the right from time to time during normal business hours upon reasonable notice to examine such books, records and accounts at the office of Borrower or other Person maintaining them, and to make such copies or extracts thereof as Lender
shall desire. After an Event of Default, Borrower shall pay any costs incurred by Lender to examine such books, records and accounts, as Lender shall determine to be necessary or appropriate in the protection of Lender’s interest. 

6.3.2 Annual Reports. Borrower shall furnish to Lender annually, within 120 days after each calendar year, a complete copy of
Borrower’s annual financial statements audited 

  
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by a “big four” accounting firm or another independent certified public accountant (accompanied by an unqualified opinion from such accounting firm or other independent certified public
accountant) reasonably acceptable to Lender, each in accordance with GAAP and containing balance sheets and statements of profit and loss for Borrower and the Property in such detail as Lender may request. Such financial statements (a) shall be
in form and substance satisfactory to Lender, (b) shall set forth the financial condition and the income and expenses for the Property for the immediately preceding calendar year, including statements of annual Net Operating Income and
(c) shall be accompanied by an Officer’s Certificate certifying (i) that such statement is true, correct, complete and accurate and presents fairly the financial condition of the Property and has been prepared in accordance with GAAP,
(ii) whether there exists a Default or Event of Default, and if so, the nature thereof, the period of time it has existed and the action then being taken to remedy it, (iii) that as of the date of such Officer’s Certificate, no
litigation exists involving Borrower or the Property in which the amount involved is $250,000 (in the aggregate) or more or in which all or substantially all of the potential liability is not covered by insurance, or, if so, specifying such
litigation and the actions being taken in relation thereto and (iv) the amount by which operating expenses incurred by Borrower for such period were greater than or less than the operating expenses reflected in the applicable Annual Budget.

 6.3.3 Monthly/Quarterly Reports. Borrower shall furnish to Lender within fifteen (15) days after the end of each
calendar month or calendar quarter (as indicated below) the following items: (a) monthly and year-to-date operating statements, noting Net Operating Income and other information necessary and sufficient under GAAP to fairly represent the
financial position and results of operation of the Property during such calendar month, all in form satisfactory to Lender; (b) a balance sheet for such calendar month; (c) a comparison of the budgeted income and expenses and the actual
income and expenses for each month and year-to-date for the Property, together with a detailed explanation of any variances of ten percent (10%) or more between budgeted and actual amounts for such period and year-to-date; (d) a statement
of the actual Capital Expenses made by Borrower during each calendar quarter as of the last day of such calendar quarter; (e) a statement that Borrower has not incurred any indebtedness other than Permitted Indebtedness; (f) an aged
receivables report; (g) all franchise inspection reports received by Borrower in such month; and (h) a summary report detailing occupancy, including average daily rate. Each such statement shall be accompanied by an Officer’s
Certificate certifying, to the best of signer’s knowledge, (i) that such items are true, correct, accurate, and complete and fairly present the financial condition and results of the operations of Borrower and the Property in accordance
with GAAP (subject to normal year-end adjustments), (ii) whether there exists a Default or Event of Default, and if so, the nature thereof, the period of time it has existed and the action then being taken to remedy it, (iii) that as of
the date of such Officer’s Certificate, no litigation exists involving Borrower or the Property in which the amount involved is $250,000 (in the aggregate) or more or in which all or substantially all of the potential liability is not covered
by insurance, or, if so, specifying such litigation and the actions being taken in relation thereto and (iv) the amount by which operating expenses incurred by Borrower for such period were greater than or less than the operating expenses
reflected in the applicable Annual Budget. Such financial statements shall contain such other information as shall be reasonably requested by Lender for purposes of calculations to be made by Lender pursuant to the terms hereof. In addition,
Borrower shall furnish or cause to be furnished to Lender, within thirty (30) days after the end of each calendar month, the most current Smith Travel Research Reports then available to Borrower reflecting market penetration and relevant hotel
properties competing with the Property. 

  
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 6.3.4 Compliance Certificates. Borrower shall furnish to Lender (a) within
thirty (30) days after the end of each calendar quarter (and, prior to a Securitization, within ten (10) days of Lender’s request), a quarterly calculation of the Debt Yield for the immediately preceding two (2) calendar quarters
as of the most recent Calculation Date (together with such back-up information as Lender shall require), prepared in the form required by Lender, accompanied by an Officer’s Certificate certifying that such statement is true, correct, complete
and accurate and (b) a calculation of the Debt Yield for the immediately preceding six months as of the following dates with respect to the Debt Yield calculation required pursuant to Section 2.8(d) hereof for the applicable
Extension Term: (i) August 1, 2018, with respect to the First Extension Term; (ii) August 1, 2019, with respect to the Second Extension Term; and (iii) August 1, 2020, with respect to the Third Extension Term, in each
case, no later than thirty (30) days prior to the commencement of the applicable Extension Term. 
 6.3.5 Other Reports.
Borrower shall furnish to Lender, within ten (10) Business Days after request, such further detailed information with respect to the operation of the Property and the financial affairs of Borrower, Sole Member or Manager as may be reasonably
requested by Lender or, if a Securitization has occurred, any applicable Rating Agency. 
 6.3.6 Annual Budget. Borrower shall
prepare and submit (or shall cause Manager to prepare and submit) to Lender within thirty (30) days after a Cash Management Period and by November 30th of each year thereafter during the
Term until such Cash Management Period has ended, for approval by Lender, which approval shall not be unreasonably withheld or delayed, a proposed pro forma budget for the Property for the succeeding calendar year (the “Annual
Budget”, and each Annual Budget approved by Lender is referred to herein as the “Approved Annual Budget”), and, promptly after preparation thereof, any revisions to such Annual Budget. The Annual Budget shall
consist of (i) an operating expense budget showing, on a month-by-month basis, in reasonable detail, each line item of Borrower’s anticipated operating income and operating expenses (on a cash and accrual basis), including amounts required
to establish, maintain and/or increase any monthly payments required hereunder (and once such Annual Budget has been approved by Lender, such operating expense budget shall be referred to herein as the “Approved Operating
Budget”), and (ii) a Capital Expense budget showing, on a month-by-month basis, in reasonable detail, each line item of anticipated Capital Expenses (and once such Annual Budget has been approved by Lender, such Capital Expense
budget shall be referred to herein as the “Approved Capital Expense/FF&E Budget”). Until such time that any Annual Budget has been approved by Lender, the prior Approved Annual Budget shall apply for all purposes
hereunder (with such adjustments as reasonably determined by Lender (including increases for any non-discretionary expenses)). 
 6.3.7
Additional Operating Expenses. 
 (a) During a Cash Management Period, in the event that Borrower incurs or will incur any
operating expense, including Emergency Expenditures, that is not in the Approved Annual Budget but is otherwise an Approved Operating Expense (each an “Additional 

  
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Operating Expense”), then Borrower shall promptly (but in no event shall Borrower be required to do so more frequently than monthly) deliver to Lender a reasonably detailed
explanation of such Additional Operating Expense(s) or, with respect to any such item that is subject to Lender’s approval, such proposed Additional Operating Expense. Any Additional Operating Expense submitted to Lender (and, if required,
approved by Lender) in accordance with this Agreement is referred to herein as an “Approved Additional Operating Expense”. 

(b) Any funds distributed to Borrower for the payment of Approved Additional Operating Expenses (including any distribution to Borrower
pursuant to Section 3.12(a)(vi)) shall be used by Borrower only to pay for Approved Additional Operating Expenses or reimburse Borrower for Approved Additional Operating Expenses, as applicable. 

6.3.8 Hotel Accounting. All monthly and other operating statements to be delivered by Borrower hereunder shall be (and all
accompanying Officer’s Certificates shall state that they have been) prepared based upon USALI. 
 6.3.9 Breach.
If Borrower fails to provide to Lender or its designee any of the financial statements, certificates, reports or information (the “Required Records”) required by this Article 6 within thirty (30) days after
the date upon which such Required Record is due, Borrower shall pay to Lender, at Lender’s option and in its discretion (and without limiting any other rights or remedies of Lender hereunder), an amount equal to $10,000 for each Required Record
that is not delivered; provided Lender has given Borrower at least fifteen (15) days prior notice of such failure. In addition, thirty (30) days after Borrower’s failure to deliver any Required Records, Lender shall have
the option (and without limiting any other rights or remedies of Lender hereunder), upon fifteen (15) days’ notice to Borrower to gain access to Borrower’s books and records and prepare or have prepared at Borrower’s expense, any
Required Records not delivered by Borrower. 
  

	7.	INSURANCE; CASUALTY; AND CONDEMNATION 

 7.1 Insurance Coverage.
Borrower, at its sole cost, for the mutual benefit of Borrower and Lender, shall obtain and maintain during the Term the following policies of insurance: 

(a) Property insurance insuring against loss or damage customarily included under so called “all risk” or “special form”
policies including but not limited to fire, lightning, windstorm, vandalism, and malicious mischief, boiler and machinery and subject to Section 7.1.1(m) hereof, coverage for damage or destruction caused by the acts of
“Terrorists”, both foreign and domestic, (or such policies shall have no exclusion from coverage with respect thereto) and such other insurable hazards as, under good insurance practices, from time to time are insured against for other
property and buildings similar to the premises in nature, use, location, height, and type of construction. Such insurance policy shall also insure for ordinance of law coverage, coverage for loss to the undamaged portion of the building, costs
of demolition and increased cost of construction in amounts satisfactory to Lender. Each such insurance policy shall (i) be in an amount equal to 100% of the then replacement cost of the Improvements without deduction for physical depreciation,
(ii) have deductibles no greater than $25,000, except for windstorm which shall be no greater than 5% of the total insurable value, (iii) be paid 

  
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annually in advance and (iv) be on a replacement cost basis and contain either no coinsurance or, if coinsurance, an agreed amount endorsement, and shall cover, without limitation, all
tenant improvements and betterments that Borrower is required to insure on a replacement cost basis. Lender shall be named Mortgagee and Loss Payee on a Standard Mortgagee Endorsement. 

(b) Flood insurance if any part of the Property is located in an area now or hereafter designated by the Federal Emergency Management Agency
as a Special Flood Hazard Area, or such other Zone if Lender so requires. Such coverage shall (i) be in an amount equal to the maximum limit available through the National Flood Insurance Program, (ii) include such excess limits in an
amount equal to (A) 100% of the full replacement cost of the Improvements on the Property (without any deduction for depreciation) or (B) such other amount as agreed to by Lender and (iii) have deductibles acceptable to Lender. 

(c) Commercial general liability insurance, including coverage for personal injury, bodily injury, death, accident and property damage, and
excess and/or umbrella liability coverage for personal injury, bodily injury, death, accident and property damage, such insurance providing in combination no less than containing minimum limits per occurrence of $1,000,000 and $2,000,000 in the
aggregate (applying “per location” if the policy covers more than one location) for any policy year with no deductible or self-insured retention; together with at least $50,000,000 excess and/or umbrella liability insurance for any and all
claims. Such excess and/or umbrella liability shall schedule the auto liability, liquor liability and/or employer’s liability policies, to the extent such coverages are required. The policies described in this subsection shall also include
coverage for Terrorism, elevators, escalators, independent contractors, and contractual liability for insured contracts (covering, to the maximum extent permitted by law, Borrower’s obligation to indemnify Lender as required under this
Agreement and the other Loan Documents). 
 (d) Rental loss and/or business interruption insurance in an amount equal to 100% of the
projected gross revenues and/or Rents (less any non-continuing expenses) for a period of at least 18 months. The period of indemnification shall include the initial period of restoration of not less than twelve (12) months, which is the period
of time required to rebuild the Property following a casualty, and an extended period of indemnity endorsement for a period of 6 months, which provides that after the physical loss to the Property has been repaired, the continued loss of income
will be insured until such income either returns to the same level it was at prior to the loss, or until the limit for such coverage as required above is exhausted, whichever first occurs, and notwithstanding that the policy may expire prior to the
end of such period. The amount of such insurance shall be increased from time to time during the Term as and when the estimated or actual gross revenues and/or Rents increase. 

(e) Comprehensive boiler and machinery insurance covering all mechanical and electrical equipment against physical damage, rent loss and
improvements loss and covering, without limitation, all tenant improvements and betterments that Borrower is required to insure pursuant to the lease on a replacement cost basis and in an amount equal to the full replacement cost of the Improvements
on the Property (without any deduction for depreciation) or such other amount acceptable to Lender. 

  
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 (f) Worker’s compensation insurance with respect to any employees of Borrower, as required
by any Legal Requirement and employer’s liability with minimum limits of $500,000 each accident, $500,000 each disease per employee, and $500,000 each disease policy limit. 

(g) During any period of repair or restoration, and only if the property and liability coverage forms do not otherwise apply,
(i) commercial general liability and umbrella liability insurance covering claims related to the repairs or restoration at the Property that are not covered by or under the terms or provisions of the insurance provided for in
Section 7.1.1(c) hereof and (i) the insurance provided for in Section 7.1.1(a) hereof, which shall, in addition to the requirements set forth in such Section, (A) be written on a builder’s “all-risk”
insurance on a completed value, non-reporting form, in an amount equal to not less than the full insurable value of the Property, against such risks (including fire and extended coverage and collapse of the Improvements to agreed limits) as Lender
may request, in form, substance and with deductibles acceptable to Lender and against all risks insured against pursuant to clauses (a), (b), (d), (e), (h) and (m) of this
Section 7.1.1 and (B) include permission to occupy the Property. 
 (h) If required by Lender, earthquake insurance
(i) with minimum coverage equivalent to the greater of 1.0x SUL (scenario upper loss) and 1.5x SEL (scenario expected loss) multiplied by the full replacement cost of the building plus business income, (ii) having a deductible not in
excess of 5% of the total insurable value of the Property, and (iii) if the Property is legally nonconforming under applicable zoning ordinances and codes, containing ordinance of law coverage in amounts as required by Lender. 

(i) Insurance against employee dishonesty in an amount acceptable to Lender (if applicable); 

(j) Commercial auto liability coverage for all owned, non-owned and hired autos containing minimum limits per occurrence of $1,000,000 (if
applicable); 
 (k) Liquor liability coverage containing minimum limits of $1,000,000 or in such greater amount as may be required by
applicable Legal Requirements (if applicable). 
 (l) Such other insurance or higher limits (including Innkeeper’s Legal Liability
environmental liability insurance, earthquake insurance and mine subsidence insurance) as may from time to time be reasonably required by Lender in order to protect its interests. 

(m) Notwithstanding anything in Section 7.1.1(a) hereof to the contrary, Borrower shall be required to obtain and maintain
coverage in its property insurance Policy (or by a separate Policy), its loss of rents/business interruption coverage, and its liability policies against loss or damage by terrorist acts, both foreign and domestic, in an amount equal to 100% of the
“Full Replacement Cost” of the Property plus the rental loss and/or business interruption insurance required in Section 7.1.1(d) hereof provided that such coverage is available. Borrower shall obtain the coverage required under
this Section 7.1.1(m) from a carrier which otherwise satisfies the rating criteria specified in Section 7.1.2 hereof (a “Qualified Carrier”) or in the event that such coverage is not
available from a Qualified Carrier, Borrower shall obtain such coverage from the highest rated insurance company providing such coverage. In the event that 

  
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such coverage with respect to terrorist acts is not included as part of the “all risk” property policy required by Section 7.1.1(a) hereof, Borrower shall, nevertheless be
required to obtain coverage for terrorism (as standalone coverage) in an amount equal to 100% of the “Full Replacement Cost” of the Property plus the rental loss and/or business interruption coverage under Section 7.1.1(d)
hereof provided that such coverage is available. 
 7.1.2 Policies. All policies of insurance (the
“Policies”) required pursuant to Section 7.1.1 hereof shall: (a) be issued by companies approved by Lender and authorized to do business in the State, with a claims paying ability rating of “A” or
better by S&P and “A2” or better by Moody’s (to the extent Moody’s rates the Securities and rates the applicable insurance company), and a rating of “A:X” or better in the current Best’s Insurance Reports;
(b) name Lender and its successors and/or assigns as their interest may appear as the mortgagee/lender’s loss payable (in the case of property insurance and business interruption/loss of rents coverage) and an additional insured (in the
case of liability insurance); (c) contain (in the case of property insurance) a Non-Contributory Standard Mortgagee Clause/Lender’s Loss Payable Endorsement, or their equivalents, naming Lender as the person to which all payments made by
such insurance company shall be paid; (d) with respect to property (including business interruption/loss of rents), commercial general liability and excess/umbrella liability policies, contain a waiver of subrogation in favor of Lender;
(e) with respect to property policies (including business interruption/loss of rents), contain such provisions as Lender deems reasonably necessary or desirable to protect its interest, including (i) endorsements providing that neither
Borrower, Lender nor any other party shall be a co-insurer under the Policies, (ii) that Lender shall receive at least thirty (30) days’ prior written notice of cancellation of any of the Property Policies, except ten
(10) days’ notice for cancellation due to non-payment of premium; such notice shall also be provided for Liability policies, when available (however, when not available for Liability policies, Borrower shall provide required notice to
Lender), (iii) that such policy shall not contain any provision that would make the Lender liable for any premiums and commissions, provided that the policy need not waive the requirement that the premium be paid in order to effect continuation
of coverage if the policy will be cancelled due to non-payment of premium and (iv) providing that Lender is permitted to make payments to effect the continuation of such policy upon notice of cancellation due to non-payment of premiums;
(f) in the event any property insurance policy shall contain breach of warranty provisions, such policy shall provide that with respect to the interest of Lender, such insurance policy shall not be invalidated by and shall insure Lender
regardless of (i) any act, failure to act or negligence of or violation of warranties, declarations or conditions contained in such policy by any named insured, (ii) the occupancy or use of the premises for purposes more hazardous than
permitted by the terms thereof, or (iii) any foreclosure or other action or proceeding taken by Lender pursuant to any provision of the Loan Documents; and (g) be satisfactory in form and substance to Lender and approved by Lender as to
amounts, form, risk coverage, deductibles, loss payees and insureds and complete copies thereof delivered to Lender. In the event of foreclosure or other transfer of title, Borrower agrees that all proceeds payable thereunder pertaining to the
Property shall thereupon vest in the purchaser at such foreclosure or in Lender or other transferee in the event of such other transfer of title. Borrower shall pay the premiums for such Policies (the “Insurance Premiums”) as
the same become due and payable and furnish to Lender evidence of the renewal of each of the Policies together with (unless such Insurance Premiums have been paid by Lender pursuant to Section 3.4 hereof) receipts for or other evidence
of the payment of the Insurance Premiums reasonably satisfactory to Lender. If Borrower does not furnish such evidence and receipts at 

  
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least thirty (30) days prior to the expiration of any expiring Policy, then Lender may, but shall not be obligated to, procure such insurance and pay the Insurance Premiums therefor, and
Borrower shall reimburse Lender for the cost of such Insurance Premiums promptly on demand, with interest accruing at the Default Rate. Borrower shall deliver to Lender a complete copy of each Policy within thirty (30) days after its effective
date. Within thirty (30) days after request by Lender, Borrower shall obtain such increases in the amounts of coverage required hereunder as may be reasonably requested by Lender, taking into consideration changes in the value of money over
time, changes in liability laws, changes in prudent customs and practices, and the like. Lender agrees that the Policies may be in the form of a blanket policy provided that (A) such policy otherwise meets the requirements set forth herein this
Section 7.1, (B) Lender shall be satisfied by evidence required by Lender that the blanket policy provides the same protection as would a separate Policy insuring only the Property in accordance with the terms of this Agreement and
(C) Borrower shall, upon written request of Lender, provide Lender with a complete schedule of locations and values for properties associated with such blanket policy (any such blanket policy that satisfies the foregoing conditions, an
“Acceptable Blanket Policy”). 
 7.2 Casualty. 

7.2.1 Notice; Restoration. If the Property is damaged or destroyed, in whole or in part, by fire or other casualty (a
“Casualty”), Borrower shall give prompt notice thereof to Lender. Following the occurrence of a Casualty, Borrower, regardless of whether insurance proceeds are available, shall promptly proceed to restore, repair, replace or
rebuild the Property in accordance with Legal Requirements to be of at least equal value and of substantially the same character as prior to such damage or destruction. 

7.2.2 Settlement of Proceeds. If a Casualty covered by any of the Policies (an “Insured Casualty”)
occurs where the loss does not exceed the Restoration Threshold, provided no Default or Event of Default has occurred and is continuing, Borrower may settle and adjust any claim without the prior consent of Lender provided that such adjustment is
carried out in a competent and timely manner, and Borrower is hereby authorized to collect and receipt for the insurance proceeds (the “Proceeds”). In the event of an Insured Casualty where the loss equals or exceeds the
Restoration Threshold (a “Significant Casualty”), Lender may settle and adjust any claim without the consent of Borrower and agree with the insurer(s) on the amount to be paid on the loss, and the Proceeds shall be due and
payable solely to Lender and held by Lender in the Casualty/Condemnation Subaccount and disbursed in accordance herewith; provided that so long as no Event of Default is continuing, Lender shall settle and adjust any claim in consultation with
Borrower. If Borrower or any party other than Lender is a payee on any check representing Proceeds with respect to a Significant Casualty, Borrower shall promptly endorse, and cause all such third parties to endorse, such check payable to the order
of Lender. Borrower hereby irrevocably appoints Lender as its attorney-in-fact, coupled with an interest, to endorse such check payable to the order of Lender. The out-of-pocket expenses incurred by Lender in the settlement, adjustment and
collection of the Proceeds shall become part of the Debt and shall be reimbursed by Borrower to Lender upon demand. Notwithstanding anything to the contrary contained herein, if in connection with a Casualty any insurance carrier makes a payment
under a property insurance Policy that Borrower proposes be treated as business or rental interruption insurance, then, notwithstanding any designation (or lack of designation) by the insurance carrier as to the purpose of such payment, as between
Lender and Borrower, such payment shall not be 

  
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treated as business or rental interruption insurance proceeds unless Borrower has demonstrated to Lender’s satisfaction that the remaining net Proceeds that will be received from the
property insurance carriers are sufficient to pay 100% of the cost of fully restoring the Improvements or, if such net Proceeds are to be applied to repay the Debt in accordance with the terms hereof, that such remaining net Proceeds will be
sufficient to pay the Debt in full. 
 7.3 Condemnation. 

7.3.1 Notice; Restoration. Borrower shall promptly give Lender notice of the actual or threatened commencement of any
condemnation or eminent domain proceeding affecting the Property (a “Condemnation”) and shall deliver to Lender copies of any and all papers served in connection with such Condemnation. Following the occurrence
of a Condemnation, Borrower, regardless of whether an Award is available, shall promptly proceed to restore, repair, replace or rebuild the Property in accordance with Legal Requirements to the extent practicable to be of at least equal value and of
substantially the same character (and to have the same utility) as prior to such Condemnation. 
 7.3.2 Collection of Award.
Lender is hereby irrevocably appointed as Borrower’s attorney-in-fact, coupled with an interest, with exclusive power to collect, receive and retain any award or payment in respect of a Condemnation (an “Award”), where
such Award exceeds the Restoration Threshold and to make any compromise, adjustment or settlement in connection with such Condemnation. Notwithstanding any Condemnation (or any transfer made in lieu of or in anticipation of such Condemnation),
Borrower shall continue to pay the Debt at the time and in the manner provided for in the Loan Documents, and the Debt shall not be reduced unless and until any Award shall have been actually received and applied by Lender to expenses of collecting
the Award and to discharge of the Debt. Lender shall not be limited to the interest paid on the Award by the condemning authority but shall be entitled to receive out of the Award interest at the Interest Rate. If the Property is sold, through
foreclosure or otherwise, prior to the receipt by Lender of such Award, Lender shall have the right, whether or not a deficiency judgment on the Note shall be recoverable or shall have been sought, recovered or denied, to receive all or a portion of
the Award sufficient to pay the Debt. Borrower shall cause any Award that is payable to Borrower to be paid directly to Lender. Lender shall hold such Award in the Casualty/Condemnation Subaccount and disburse such Award in accordance with the terms
hereof. 
 7.4 Application of Proceeds or Award. 

7.4.1 Application to Restoration. If an Insured Casualty or a Condemnation occurs where: 

(a) the loss is in an aggregate amount less than fifteen percent (15%) of the unpaid Principal; 

(b) in the reasonable judgment of Lender, the Property can be restored within nine (9) months, and prior to six
(6) months before the Stated Maturity Date, and prior to the expiration of the rental or business interruption insurance with respect thereto, to the Property’s pre-existing condition and utility as existed

  
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immediately prior to such Insured Casualty or Condemnation, and to an economic unit not less valuable and not less useful than the same was immediately prior to the Insured Casualty or
Condemnation, and after such restoration will adequately secure the Debt; 
 (c) less than (i) thirty percent (30%), in
the case of an Insured Casualty or (ii) fifteen percent (15%), in the case of a Condemnation, of the rentable area of the Improvements has been damaged, destroyed or rendered unusable as a result of such Insured Casualty or Condemnation; 

(d) Leases demising in the aggregate at least sixty-five percent (65%) of the total rentable space in the Property and in
effect as of the date of the occurrence of such Insured Casualty or Condemnation remain in full force and effect during and after the completion of the Restoration (hereinafter defined); 

(e) no Default or Event of Default shall have occurred and be then continuing; and 

(f) the Franchise Agreement shall at all times during the Restoration and from and after the completion thereof remain in full
force and effect, without default by Borrower thereunder (except to the extent such default would be cured by performance of such Restoration). 
 then the
Proceeds or the Award, as the case may be (after reimbursement of any expenses incurred by Lender), shall be applied to reimburse Borrower for the cost of restoring, repairing, replacing or rebuilding the Property (the
“Restoration”), in the manner set forth herein. Borrower shall commence (which shall be deemed to mean that Borrower has commenced the filing of all applications and permits required to effect such Restoration)
and diligently prosecute such Restoration. Notwithstanding the foregoing, in no event shall Lender be obligated to apply the Proceeds or Award to reimburse Borrower for the cost of Restoration unless, in addition to satisfaction of the foregoing
conditions, both (i) Borrower shall pay (and if required by Lender, Borrower shall deposit with Lender in advance) all costs of such Restoration in excess of the net amount of the Proceeds or the Award made available pursuant to the terms
hereof and (ii) Lender shall have received evidence reasonably satisfactory to it that during the period of the Restoration, the Rents will be at least equal to the sum of the operating expenses and Debt Service and other reserve payments
required hereunder, as reasonably determined by Lender or that Borrower has otherwise committed sufficient funds to address any such shortfall in a manner reasonably acceptable to Lender. 

7.4.2 Application to Debt. Except as provided in Section 7.4.1 hereof, any Proceeds and/or Award may, at the option
of Lender, be applied to the payment of (i) accrued but unpaid interest on the Note, (ii) the unpaid Principal and (iii) other charges due under the Note and/or any of the other Loan Documents, or applied to reimburse Borrower for the
cost of any Restoration, in the manner set forth in Section 7.4.3 hereof. Any prepayment of the Loan made pursuant to this Section 7.4.2 shall be subject to the Exit Fee, but shall otherwise be without any Spread Maintenance
Premium, unless an Event of Default has occurred and is 

  
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continuing at the time the Proceeds are received from the insurance company or the Award is received from the condemning authority, as the case may be, in which event Borrower shall pay to Lender
an additional amount equal to the Spread Maintenance Premium, if any, that may be required with respect to the amount of the Proceeds or Award applied to the unpaid Principal. 

7.4.3 Procedure for Application to Restoration. If Borrower is entitled to reimbursement out of the Proceeds or an Award held by
Lender, such Proceeds or Award shall be disbursed from time to time from the Casualty/Condemnation Subaccount upon Lender being furnished with (a) evidence satisfactory to Lender of the estimated cost of completion of the Restoration,
(b) with respect to any Restoration the cost of which is anticipated to exceed the Restoration Threshold, a fixed price or guaranteed maximum cost construction contract for Restoration satisfactory to Lender, (c) prior to the commencement
of Restoration, all immediately available funds in addition to the Proceeds or Award that in Lender’s judgment are required to complete the proposed Restoration, (d) such architect’s certificates, waivers of lien, contractor’s
sworn statements, title insurance endorsements, bonds, plats of survey, permits, approvals, licenses and such other documents and items as Lender may reasonably require and approve, and (e) all plans and specifications for such Restoration,
such plans and specifications to be approved by Lender prior to commencement of any work, and provided that no Event of Default is then continuing, such approval shall not be unreasonably withheld, conditioned or delayed. Lender may, at
Borrower’s expense, retain a Construction Consultant to review and approve all requests for disbursements, which approval shall also be a condition precedent to any disbursement. No payment made prior to the final completion of the Restoration
shall exceed ninety percent (90%) of the value of the work performed from time to time; funds other than the Proceeds or Award shall be disbursed prior to disbursement of such Proceeds or Award; and at all times, the undisbursed balance of such
Proceeds or Award remaining in the hands of Lender, together with funds deposited for that purpose or irrevocably committed to the satisfaction of Lender by or on behalf of Borrower for that purpose, shall be at least sufficient in the reasonable
judgment of Lender to pay for the cost of completion of the Restoration, free and clear of all Liens or claims for Lien. Provided no Default or Event of Default then exists, any surplus that remains out of the Proceeds held by Lender after payment
of such costs of Restoration shall be paid to Borrower (unless a Cash Management Period is continuing, in which event, such surplus shall be deposited into the Cash Management Account as if Rents and disbursed pursuant to Section 3.15
hereof. Any surplus that remains out of the Award received by Lender after payment of such costs of Restoration shall be retained by Lender and applied to payment of the Debt or returned to Borrower. 

8. DEFAULTS 
 8.1 Events of
Default. An “Event of Default” shall exist with respect to the Loan if any of the following shall occur: 
 (a) any
portion of the Debt is not paid when due or Borrower shall fail to pay when due any payment required under Sections 3.3, 3.4, 3.5, 3.6, 3.8, 3.9 or 3.11 hereof; 

(b) any of the Taxes are not paid when due (unless, with respect to Real Estate Taxes, Lender is paying such Real Estate Taxes pursuant to
Section 3.3 hereof, sufficient funds are in the Tax Subaccount to make such payment, Lender is otherwise obligated to (and has the 

  
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right to) make such payments, and Lender has failed to make such payments), subject to Borrower’s right to contest Taxes in accordance with Section 5.2 hereof; 

(c) the Policies are (i) not kept in full force and effect (unless, with respect to Insurance Premiums, Lender is paying such Insurance
Premiums pursuant to Section 3.4 hereof, sufficient funds are in the Insurance Subaccount to make such payment, Lender is otherwise obligated to (and has the right to) pay for such Insurance Premiums, and Lender has failed to make such
payments) or (ii) not delivered to Lender upon request; 
 (d) a Transfer other than a Permitted Transfer occurs; provided, however, if
such Transfer was unintentional, immaterial and can be reversed within five (5) Business Days, such Transfer shall not constitute an Event of Default if Borrower causes such Transfer to in fact be reversed within five (5) Business Days
after the date that such Transfer occurred; 
 (e) any certification, representation or warranty made by Borrower or Guarantor herein or in
any other Loan Document, or in any report, certificate, financial statement or other instrument, agreement or document furnished by Borrower or Guarantor in connection with any Loan Document, shall be false or misleading in any material respect as
of the date the representation or warranty was made (provided, however, as to any such false or misleading representation or warranty which was unintentionally made or submitted to Lender and which can either be made true and correct by action of
Borrower or be cured to Lender’s reasonable satisfaction, Borrower shall have a period of thirty (30) days following the earlier to occur of, (A) written notice thereof from Lender to Borrower or (B) Borrower becoming aware of
such breach, to undertake and complete all action necessary to make such representation or warranty either true and correct in all material respects as and when made or cured to Lender’s reasonable satisfaction); 

(f) Borrower, Sole Member, Key Principal or Guarantor shall make an assignment for the benefit of creditors, or shall generally not be paying
its debts as they become due; 
 (g) a receiver, liquidator or trustee shall be appointed for Borrower, Sole Member, Key Principal or
Guarantor; or Borrower, Sole Member, Key Principal or Guarantor shall be adjudicated a bankrupt or insolvent; or any petition for bankruptcy, reorganization or arrangement pursuant to federal bankruptcy law, or any similar federal or state law,
shall be filed by or against, consented to, or acquiesced in by, Borrower, Sole Member, Key Principal or Guarantor, as the case may be; or any proceeding for the dissolution or liquidation of Borrower, Sole Member, Key Principal or Guarantor shall
be instituted; provided, however, if such appointment, adjudication, petition or proceeding was involuntary and not consented to by Borrower, Sole Member, Key Principal or Guarantor, as the case may be, only upon the same
not being discharged, stayed or dismissed within sixty (60) days; 
 (h) Borrower breaches any covenant contained in Sections
5.12.1(a) through (f), 5.13, 5.15, 5.22, 5.25, 5.27, 5.28 or 5.34 hereof; 

  
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 (i) except as expressly permitted hereunder, the actual or threatened alteration, improvement,
demolition or removal of all or any portion of the Improvements without the prior written consent of Lender; 
 (j) an Event of Default as
defined or described elsewhere in this Agreement or in any other Loan Document occurs; or any other event shall occur or condition shall exist, if the effect of such event or condition is to accelerate or to permit Lender to accelerate the maturity
of any portion of the Debt; 
 (k) a default occurs under any term, covenant or provision set forth herein or in any other Loan Document
which specifically contains a notice requirement or grace period and such notice has been given and such grace period has expired; 
 (l)
any of the assumptions contained in any substantive non-consolidation opinion, delivered to Lender by Borrower’s counsel in connection with the Loan or otherwise hereunder, were not true and correct as of the date of such opinion or thereafter
became untrue or incorrect (provided, however, that such breach shall not constitute an Event of Default if (A) such breach was inadvertent, immaterial and non-recurring, (B) such breach is curable and Borrower shall promptly cure such
breach upon Borrower’s obtaining actual knowledge of such breach and (C) within thirty (30) calendar days of the request by Lender, Borrower causes its legal counsel to deliver (1) a non-consolidation opinion stating that such
breach would not result in a substantive consolidation of the assets and liabilities of Borrower with those of any other Person in a bankruptcy proceeding under the Bankruptcy Code or (2) if a non-consolidation opinion had previously been
delivered to Lender, a revised or updated non-consolidation opinion to the effect that such breach shall not impair, negate or amend the opinions rendered in the non-consolidation opinion delivered in connection with the closing of the Loan, which
opinion shall be acceptable to Lender in its reasonable discretion); 
 (m) Guarantors breach any of the financial covenants set forth in
Section 6 of the Guaranty; or 
 (n) a default shall be continuing under any of the other terms, covenants or conditions of this
Agreement or any other Loan Document not otherwise specified in this Section 8.1, for ten (10) days after notice to Borrower (and Guarantor, if applicable) from Lender, in the case of any default which can be cured by the payment of
a sum of money, or for thirty (30) days after notice from Lender in the case of any other default; provided, however, that if such non-monetary default is susceptible of cure but cannot reasonably be cured within
such thirty (30)-day period, and Borrower (or Guarantor, if applicable) shall have commenced to cure such default within such thirty (30)-day period and thereafter diligently and expeditiously proceeds to cure the same, such thirty (30)-day period
shall be extended for an additional period of time as is reasonably necessary for Borrower (or Guarantor, if applicable) in the exercise of due diligence to cure such default, such additional period not to exceed ninety (90) days. 

Notwithstanding the foregoing, with respect to Guarantor’s covenant set forth in Section 6 of the Guaranty to continuously maintain the Net Worth
Threshold and the Liquid Assets Threshold, the parties agree that in the event that, subsequent to the date hereof, Guarantor anticipates that it will fail to maintain such level of Net Worth and/or Liquid Assets, the same shall not constitute

  
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an Event of Default hereunder if prior to such occurrence, Borrower causes an Acceptable Replacement Guarantor approved by Lender to execute and deliver to Lender a replacement guaranty in the
same form as the Guaranty whereby such Acceptable Replacement Guarantor agrees to be bound by all of the obligations and liabilities of Guarantors set forth in the Guaranty and covenants to continuously maintain the Net Worth Threshold and the
Liquid Assets Threshold, whereupon all references herein or in any other Loan Document to “Guarantor” shall mean such Acceptable Replacement Guarantor, as the guarantors thereunder. 

8.2 Remedies. 

8.2.1 Acceleration. Upon the occurrence of an Event of Default (other than an Event of Default described in Sections
8.1(f) or (g) hereof) and at any time and from time to time thereafter, in addition to any other rights or remedies available to it pursuant to the Loan Documents or at law or in equity, Lender may take such action, without notice or
demand (and Borrower hereby expressly waives any such notice or demand), that Lender deems advisable to protect and enforce its rights against Borrower and in and to the Property; including declaring the Debt to be immediately due and payable
(including unpaid interest, Default Rate interest, Late Payment Charges, Spread Maintenance Premium, Exit Fees and any other amounts owing by Borrower), without notice or demand; and upon any Event of Default described in Sections 8.1(f)
or (g) hereof, the Debt (including unpaid interest, Default Rate interest, Late Payment Charges, Spread Maintenance Premium, Exit Fees and any other amounts owing by Borrower) shall immediately and automatically become due and payable,
without notice or demand, and Borrower hereby expressly waives any such notice or demand, anything contained in any Loan Document to the contrary notwithstanding. 

8.2.2 Remedies Cumulative. Upon the occurrence of an Event of Default, all or any one or more of the rights, powers, privileges
and other remedies available to Lender against Borrower under the Loan Documents or at law or in equity may be exercised by Lender at any time and from time to time, whether or not all or any of the Debt shall be declared, or be automatically, due
and payable, and whether or not Lender shall have commenced any foreclosure proceeding or other action for the enforcement of its rights and remedies under any of the Loan Documents. Any such actions taken by Lender shall be cumulative and
concurrent and may be pursued independently, singly, successively, together or otherwise, at such time and in such order as Lender may determine, to the fullest extent permitted by law, without impairing or otherwise affecting the other rights and
remedies of Lender permitted by law, equity or contract or as set forth in the Loan Documents. Without limiting the generality of the foregoing, Borrower agrees that if an Event of Default is continuing, (a) to the extent permitted by
applicable law, Lender is not subject to any “one action” or “election of remedies” law or rule, and (b) all Liens and other rights, remedies or privileges provided to Lender shall remain in full force and effect until
Lender has exhausted all of its remedies against the Property, the Mortgage has been foreclosed, the Property has been sold and/or otherwise realized upon in satisfaction of the Debt or the Debt has been paid in full. To the extent permitted by
applicable law, nothing contained in any Loan Document shall be construed as requiring Lender to resort to any portion of the Property for the satisfaction of any of the Debt in preference or priority to any other portion, and Lender may seek
satisfaction out of the entire Property or any part thereof. 

  
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 8.2.3 Severance. (a) During the continuance of an Event of Default, Lender
shall have the right from time to time to partially foreclose the Mortgage in any manner and for any amounts secured by the Mortgage then due and payable as determined by Lender, including the following circumstances: (i) in the event Borrower
defaults beyond any applicable grace period in the payment of one or more scheduled payments of Principal and interest, Lender may foreclose the Mortgage to recover such delinquent payments; or (ii) in the event Lender elects to accelerate less
than the entire outstanding principal balance of the Loan, Lender may foreclose the Mortgage to recover so much of the principal balance of the Loan as Lender may accelerate and such other sums secured by the Mortgage as Lender may elect.
Notwithstanding one or more partial foreclosures, the Property shall remain subject to the Mortgage to secure payment of the sums secured by the Mortgage and not previously recovered. 

(b) During the continuance of an Event of Default, Lender shall have the right from time to time to sever the Note and the other Loan
Documents into one or more separate notes, mortgages and other security documents in such denominations and priorities of payment and liens as Lender shall determine for purposes of evidencing and enforcing its rights and remedies provided
hereunder. Borrower shall execute and deliver to Lender from time to time, promptly after the request of Lender, a severance agreement and such other documents as Lender shall request in order to effect the severance described in the preceding
sentence, all in form and substance reasonably satisfactory to Lender. Borrower hereby absolutely and irrevocably appoints Lender as its true and lawful attorney, coupled with an interest, in its name and stead to make and execute all documents
necessary or desirable to effect such severance, Borrower ratifying all that such attorney shall do by virtue thereof. 
 8.2.4
Delay. No delay or omission to exercise any remedy, right or power accruing upon an Event of Default, or the granting of any indulgence or compromise by Lender shall impair any such remedy, right or power hereunder or be construed as a
waiver thereof, but any such remedy, right or power may be exercised from time to time and as often as may be deemed expedient. A waiver of one Default or Event of Default shall not be construed to be a waiver of any subsequent Default or Event of
Default or to impair any remedy, right or power consequent thereon. Notwithstanding any other provision of this Agreement, Lender reserves the right to seek a deficiency judgment or preserve a deficiency claim in connection with the foreclosure of
the Mortgage to the extent necessary to foreclose on all or any portion of the Property, the Rents, the Cash Management System Accounts or any other collateral. 

8.2.5 Lender’s Right to Perform. If Borrower fails to perform any covenant or obligation contained herein and such failure
shall continue for a period of ten (10) Business Days after Borrower’s receipt of written notice thereof from Lender, without in any way limiting Lender’s right to exercise any of its rights, powers or remedies as provided hereunder,
or under any of the other Loan Documents, Lender may, but shall have no obligation to, perform, or cause performance of, such covenant or obligation, and all costs, expenses, liabilities, penalties and fines of Lender incurred or paid in connection
therewith shall be payable by Borrower to Lender upon demand and if not paid shall be added to the Debt (and to the extent permitted under applicable laws, secured by the Mortgage and other Loan Documents) and shall bear interest thereafter at the
Default Rate. Notwithstanding the foregoing, Lender shall have no obligation to send notice to Borrower of any such failure. 

  
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	9.	SECONDARY MARKET PROVISIONS 

 9.1 Sale of Note and Secondary Market
Transaction. 
 9.1.1 General; Borrower Cooperation. Lender shall have the right at any time and from time to time
(a) to sell or otherwise transfer the Loan or any portion thereof or the Loan Documents or any interest therein to one or more investors, (b) to sell participation interests in the Loan to one or more investors or (c) to securitize
the Loan or any portion thereof in a single asset securitization or a pooled loan securitization of rated single or multi-class securities (the “Securities”) secured by or evidencing ownership interests in the Note and the
Mortgage (each such sale, assignment, participation and/or securitization is referred to herein as a “Secondary Market Transaction”, and the transactions referred to in clause (c) shall be referred to herein as a
“Securitization”). In connection with any Secondary Market Transaction, Borrower shall, at Borrower’s reasonable expense, use all reasonable efforts and cooperate fully and in good faith with Lender and otherwise assist
Lender in satisfying the market standards to which Lender customarily adheres or which may be reasonably required in the marketplace or by the Rating Agencies in connection with any such Secondary Market Transactions, including: (i) to
(A) provide such financial and other information with respect to the Property, Borrower and its Affiliates, Guarantor, Manager and any tenants of the Property, (B) provide business plans and budgets relating to the Property and
(C) perform or permit or cause to be performed or permitted such site inspection, appraisals, surveys, market studies, environmental reviews and reports, engineering reports and other due diligence investigations of the Property, as may be
reasonably requested from time to time by Lender or, if applicable, the Rating Agencies or as may be necessary or appropriate in connection with a Secondary Market Transaction or Exchange Act requirements (the items provided to Lender pursuant to
this clause (i) being called the “Provided Information”), together, if customary, with appropriate verification of and/or consents to the Provided Information through letters of auditors or opinions of counsel of
independent attorneys acceptable to Lender and, if applicable, the Rating Agencies; (ii) at Borrower’s expense, cause counsel to render opinions as to non-consolidation and any other opinion customary in securitization transactions with
respect to the Property, Borrower and its Affiliates, which counsel and opinions shall be reasonably satisfactory to Lender and, if applicable, the Rating Agencies; (iii) make such representations and warranties as of the date hereof of any
Secondary Market Transaction with respect to the Property, Borrower and the Loan Documents as are customarily provided in such transactions and as may be reasonably requested by Lender or, if applicable, the Rating Agencies and consistent with the
facts covered by such representations and warranties as they exist on the date thereof, including the representations and warranties made in the Loan Documents; (iv) provide current certificates of good standing and qualification with respect
to Borrower and Sole Member from appropriate Governmental Authorities; and (v) execute such amendments to the Loan Documents and Borrower’s organizational documents, as may be requested by Lender or, if applicable, the Rating Agencies or
otherwise to effect a Secondary Market Transaction, provided that nothing contained in this clause (v) shall result in a material economic change in the transaction. Borrower shall pay all reasonable third party costs and expenses
incurred by Lender in connection with a Secondary Market Transaction. Borrower’s cooperation obligations set forth herein shall continue until the Loan has been paid in full. For purposes of this Section 9.1.1, the term
“Affiliate” does not include the direct or indirect equity owners of Condor Guarantor or the limited partners of Supertel or the direct or indirect owners of Supertel’s limited partners. 

  
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 9.1.2 Use of Information. Borrower understands that all or any portion of the
Provided Information and the Required Records may be included in disclosure documents in connection with a Secondary Market Transaction, including a prospectus or private placement memorandum (each, a “Disclosure Document”)
and may also be included in filings with the Securities and Exchange Commission pursuant to the Securities Act of 1933, as amended (the “Securities Act”), or the Securities and Exchange Act of 1934, as amended (the
“Exchange Act”), or provided or made available to investors or prospective investors in the Securities, the Rating Agencies, and service providers or other parties relating to the Secondary Market Transaction. If the
Disclosure Document is required to be revised, Borrower shall cooperate with Lender in updating the Provided Information or Required Records for inclusion or summary in the Disclosure Document or for other use reasonably required in connection with
a Secondary Market Transaction by providing all current information pertaining to Borrower, Manager and the Property necessary to keep the Disclosure Document accurate and complete in all material respects with respect to such matters. 

9.1.3 Borrower Obligations Regarding Disclosure Documents. In connection with a Disclosure Document, Borrower shall: (a) if
requested by Lender, certify in writing that Borrower has carefully examined those portions of such Disclosure Document, pertaining to Borrower, the Property, Manager and the Loan, and that such portions do not contain any untrue statement of a
material fact or omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading; and (b) indemnify (in a separate instrument of indemnity, if so
requested by Lender) (i) any underwriter, syndicate member or placement agent (collectively, the “Underwriters”) retained by Lender or its issuing company affiliate (the “Issuer”) in connection
with a Secondary Market Transaction, (ii) Lender (and for purposes of this Section 9.1, Lender shall include LoanCore, its Affiliates, successors and assigns, and their respective officers and directors) and (iii) the Issuer
that is named in the Disclosure Document or registration statement relating to a Secondary Market Transaction (the “Registration Statement”), and each of the Issuer’s directors, each of its officers who have signed the
Registration Statement and each person or entity who controls the Issuer or the Lender within the meaning of Section 15 of the Securities Act or Section 30 of the Exchange Act (collectively within clause (iii), the
“Lender Group”), and each of its directors and each person who controls each of the Underwriters, within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act (collectively, the
“Underwriter Group”) for any losses, claims, damages or liabilities (the “Liabilities”) to which Lender, the Lender Group or the Underwriter Group may become subject (including reimbursing all of them
for any legal or other expenses actually incurred in connection with investigating or defending the Liabilities) insofar as the Liabilities arise out of or are based upon any untrue statement or alleged untrue statement of any material fact
contained in any of the Provided Information or in any of the applicable portions of such sections of the Disclosure Document applicable to Borrower, Manager, Guarantor, the Property or the Loan, or arise out of or are based upon the omission or
alleged omission to state therein a material fact required to be stated in the applicable portions of such sections or necessary in order to make the statements in the applicable portions of such sections in light of the circumstances under which
they were made, not misleading; provided, however, that Borrower shall not be required to indemnify Lender for any Liabilities relating to untrue statements or omissions which Borrower identified to Lender in writing at
the time of Borrower’s examination of such Disclosure Document. 

  
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 9.1.4 Borrower Indemnity Regarding Filings. In connection with filings under the
Exchange Act, Borrower shall (a) indemnify Lender, the Lender Group and the Underwriter Group for any Liabilities to which Lender, the Lender Group or the Underwriter Group may become subject insofar as the Liabilities arise out of or are based
upon the omission or alleged omission to state in the Provided Information a material fact required to be stated in the Provided Information in order to make the statements in the Provided Information, in light of the circumstances under which they
were made not misleading and (b) reimburse Lender, the Lender Group or the Underwriter Group for any legal or other expenses actually incurred by Lender, Lender Group or the Underwriter Group in connection with defending or investigating the
Liabilities. 
 9.1.5 Indemnification Procedure. Promptly after receipt by an indemnified party under
Section 9.1.3 or Section 9.1.4 hereof of notice of the commencement of any action for which a claim for indemnification is to be made against Borrower, such indemnified party shall notify Borrower in writing of such
commencement, but the omission to so notify Borrower will not relieve Borrower from any liability that it may have to any indemnified party hereunder except to the extent that failure to notify causes prejudice to Borrower. If any action is brought
against any indemnified party, and it notifies Borrower of the commencement thereof, Borrower will be entitled, jointly with any other indemnifying party, to participate therein and, to the extent that it (or they) may elect by written notice
delivered to the indemnified party promptly after receiving the aforesaid notice of commencement, to assume the defense thereof with counsel satisfactory to such indemnified party in its discretion. After notice from Borrower to such indemnified
party under this Section 9.1.5, Borrower shall not be responsible for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation;
provided, however, if the defendants in any such action include both Borrower and an indemnified party, and any indemnified party shall have reasonably concluded that there are any legal defenses available to it and/or
other indemnified parties that are different from or additional to those available to Borrower, then the indemnified party or parties shall have the right to select separate counsel to assert such legal defenses and to otherwise participate in the
defense of such action on behalf of such indemnified party or parties. Borrower shall not be liable for the expenses of more than one separate counsel unless there are legal defenses available to it that are different from or additional to those
available to another indemnified party. Without the prior written consent of Lender (which consent shall not be unreasonably withheld or delayed), Borrower shall not settle or compromise or consent to the entry of any judgment in any pending or
threatened claim, action, suit or proceeding in respect of which indemnification may be sought hereunder (whether or not Borrower is an actual or potential party to such claim, action, suit or proceeding) unless Borrower shall have given Lender
reasonable prior written notice thereof and shall have obtained an unconditional release of each indemnified party hereunder from all liability arising out of such claim, action, suit or proceedings. 

9.1.6 Contribution. In order to provide for just and equitable contribution in circumstances in which the indemnity agreement
provided for in Section 9.1.3 or Section 9.1.4 hereof is for any reason held to be unenforceable by an indemnified party in respect of any Liabilities (or action in respect thereof) referred to therein which would otherwise
be indemnifiable under Section 9.1.3 or Section 9.1.4 hereof, Borrower shall contribute to the amount paid or payable by the indemnified party as a result of such Liabilities (or action in 

  
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respect thereof); provided, however, that no Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be
entitled to contribution from any Person not guilty of such fraudulent misrepresentation. In determining the amount of contribution to which the respective parties are entitled, the following factors shall be considered: (a) the Lender
Group’s and Borrower’s relative knowledge and access to information concerning the matter with respect to which the claim was asserted; (b) the opportunity to correct and prevent any statement or omission; and (c) any other
equitable considerations appropriate in the circumstances. Lender and Borrower hereby agree that it may not be equitable if the amount of such contribution were determined by pro rata or per capita allocation. 

9.1.7 Survival. The liabilities and obligations of both Borrower and Lender under this Section 9.1 shall survive the
termination of this Agreement and the satisfaction and discharge of the Debt. 
 9.2 Severance of Loan. Lender, without in any
way limiting Lender’s other rights hereunder, shall have the right, at any time (whether prior to, in connection with, or after any Secondary Market Transaction), at Borrower’s sole cost and expense, with respect to all or any portion of
the Loan, to modify, split and/or sever all or any portion of the Loan as hereinafter provided. Without limiting the foregoing, Lender may (a) cause the Note and the Mortgage to be split into a first and second mortgage loan, (b) create
one or more senior and subordinate notes (i.e., an A/B or A/B/C structure, provided that any mezzanine borrower under such a structure shall be newly formed at the time of such transaction), (c) create multiple components of the Note
(and allocate or reallocate the principal balance of the Loan among such components), (d) otherwise sever the Loan into two (2) or more loans secured by mortgages and by a pledge of partnership or membership interests (directly or
indirectly) in Borrower (i.e., a senior loan/mezzanine loan structure), in each such case described in clauses (a) through (d) above, in whatever proportion and whatever priority Lender determines, and (e) modify
the Loan Documents with respect to the newly created notes or components of the Note such that the pricing and marketability of the Securities and the size of each class of Securities and the rating assigned to each such class by the Rating Agencies
shall provide the most favorable rating levels and achieve the optimum rating levels for the Loan. Notwithstanding the foregoing, no such amendment described above shall (i) modify or amend any material economic term of the Loan, or
(ii) materially increase the obligations, or decrease the rights, of Borrower under the Loan Documents; provided, however, in each such instance the outstanding principal balance of all the notes evidencing the Loan
(or components of such notes) immediately after the effective date of such modification equals the outstanding principal balance of the Loan immediately prior to such modification and the weighted average of the interest rates for all such note(s)
(or components thereof) immediately after the effective date of such modification equals the Interest Rate immediately prior to such modification (provided, however, that it is agreed that partial prepayments of
principal, including resulting from a Casualty/Condemnation Prepayment may cause the weighted average Interest Rate to change over time due to the non-pro rata allocation of such prepayments between any such separate notes, participations or
counterparts). If requested by Lender, Borrower (and Borrower’s constituent members, if applicable, and Guarantor) shall execute within five (5) Business Days after such request, such documentation as Lender may reasonably request to
evidence and/or effectuate any such modification or severance. At Lender’s election, each note comprising the Loan may be subject to one or more 

  
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Securitizations. Lender shall have the right to modify the Note and/or Notes and any components in accordance with this Section 9.2 and, provided that such modification shall comply
with the terms of this Section 9.2, it shall become immediately effective. 
 9.3 Costs and Expenses.
Notwithstanding anything to the contrary contained in this Article 9, Borrower shall not be required to incur any costs or expenses in the performance of its obligations under Sections 9.1, 9.2 (excluding the indemnity
obligations set forth therein) or 9.3 hereof in excess of $25,000, other than expenses of Borrower’s counsel, accountants and consultants. 
  

	10.	MISCELLANEOUS 

 10.1 Exculpation. Subject to the qualifications
below, Lender shall not enforce the liability and obligation of Borrower to perform and observe the obligations contained in the Loan Documents by any action or proceeding wherein a money judgment shall be sought against Borrower, except that Lender
may bring a foreclosure action, an action for specific performance or any other appropriate action or proceeding to enable Lender to enforce and realize upon its interest and rights under the Loan Documents, or in the Property, the Rents or any
other collateral given to Lender pursuant to the Loan Documents; provided, however, that, except as specifically provided herein, any judgment in any such action or proceeding shall be enforceable against Borrower only to
the extent of Borrower’s interest in the Property, in the Rents and in any other collateral given to Lender. The provisions of this Section 10.1 shall not, however, (i) constitute a waiver, release or impairment of any
obligation evidenced or secured by any Loan Document, (ii) impair the right of Lender to name Borrower as a party defendant in any action or suit for foreclosure and sale under the Mortgage, (iii) affect the validity or enforceability of
any of the Loan Documents or any guaranty made in connection with the Loan or any of the rights and remedies of Lender thereunder, (iv) impair the right of Lender to obtain the appointment of a receiver, (v) impair the enforcement of the
Assignment of Leases and Rents, (vi) constitute a prohibition against Lender to commence any other appropriate action or proceeding in order for Lender to fully realize the security granted by the Mortgage or to exercise its remedies against
the Property or (vii) constitute a waiver of the right of Lender to enforce the liability and obligation of Borrower, by money judgment or otherwise, to the extent of any loss, damage, cost, expense, liability, claim or other obligation
incurred by Lender (including attorneys’ fees and costs reasonably incurred) arising out of or in connection with the following (all such liability and obligation of Borrower for any or all of the following being referred to herein as
“Borrower’s Recourse Liabilities”): 
 (a) fraud, willful misconduct, intentional
misrepresentation or intentional failure to disclose a material fact by or on behalf of Borrower, Guarantor or any Affiliate of Borrower or Guarantor, or any of their respective agents or representatives in connection with the Loan, including by
reason of any claim under the Racketeer Influenced and Corrupt Organizations Act (RICO); 
 (b) the forfeiture by Borrower
of the Property, or any portion thereof, because of the conduct or purported conduct of criminal activity by Borrower or Guarantor or any of their respective agents or representatives in connection therewith; 

  
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 (c) physical waste of the Property or any portion thereof (including the
abandonment of the Property), or, after an Event of Default, the removal or disposal of any portion of the Property, unless such waste was due to the fact that Rents received during the period in question are insufficient to pay all of
Borrower’s current and/or past due liabilities (including such relevant costs) with respect to the Property; 
 (d) any
Proceeds paid by reason of any Insured Casualty or any Award received in connection with a Condemnation or other sums or payments attributable to the Property not applied in accordance with the provisions of the Loan Documents (except to the extent
that Borrower did not have the legal right, because of a bankruptcy, receivership or similar judicial proceeding, to direct disbursement of such sums or payments); 

(e) all Rents of the Property received or collected by or on behalf of Borrower after an Event of Default and not applied to
payment of Principal and interest due under the Note, and to the payment of actual and reasonable operating expenses of the Property, as they become due or payable (except to the extent that such application of such funds is prevented by bankruptcy,
receivership, or similar judicial proceeding in which Borrower is legally prevented from directing the disbursement of such sums); 

(f) misappropriation or conversion by or on behalf of Borrower (including failure to turn over to Lender on written demand
following an Event of Default) of any gross revenues (including Rents, advance deposits, any other deposits, rents collected in advance, funds held by Borrower for the benefit of another party and Lease termination payments); 

(g) the failure to pay Taxes, unless (A) with respect to Real Estate Taxes, Lender is paying such Real Estate Taxes
pursuant to Section 3.3 hereof, sufficient funds are in the Tax Subaccount to make such payment, Lender is otherwise obligated to (and has the right to) make such payments, and Lender has failed to make such payments) or (B) Rents
received during the tax period in question are insufficient to pay all of Borrower’s current and/or past due liabilities (including such Real Estate Taxes) with respect to the Property so long as Borrower has provided Lender prior written
notice of such insufficiency; 
 (h) the breach of any representation, warranty, covenant or indemnification in any Loan
Document concerning Environmental Laws or Hazardous Substances, including Sections 4.21 and 5.8 hereof, and clauses (h) through (l) of Section 5.30 hereof; 

(i) the failure to pay any charges for labor or materials or other charges that can create Liens on any portion of the
Property; unless (A) funds to pay such charges were, at the time in question, available in an applicable reserve and Lender failed to pay (or make such funds available to pay) such charges or (B) Rents received during the period in
question are insufficient to pay all of Borrower’s current and/or past due liabilities (including such charges) with respect to the Property so long as Borrower has provided Lender prior written notice of such insufficiency; 

  
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 (j) any security deposits, advance deposits or any other deposits collected with
respect to the Property which are not delivered to Lender in accordance with the provisions of the Loan Documents; 
 (k)
the failure to obtain and maintain the fully paid for Policies in accordance with Section 7.1.1 hereof (unless, (A) with respect to Insurance Premiums, Lender is paying such Insurance Premiums pursuant to Section 3.4
hereof, sufficient funds are in the Insurance Subaccount to make such payment, Lender is otherwise obligated to (and has the right to) pay for such Insurance Premiums, and Lender has failed to make such payments or (B) Rents received during the
period in question are insufficient to obtain and maintain the fully paid for Policies, so long as Borrower has provided Lender prior written notice of such insufficiency); 

(l) a breach of the representation set forth in Section 4.1(b) hereof or a breach in the covenants set forth in
Section 5.13 hereof that does not result in the substantive consolidation of the assets and liabilities of Borrower with any other Person as a result of such breach; 

(m) if in connection with any Transfer of the Property to Lender (or Lender’s designee) in full or partial satisfaction
of the Debt, Borrower or any Affiliate of Borrower fails to take any lawful action reasonably necessary to effect the transfer of any liquor license or other Licenses with respect to the Property from the then-current holder thereof to the
transferee of the Property or its designee after receipt of notice from Lender (or Lender’s designee) that Borrower’s or such Affiliate’s cooperation is necessary for the transfer of any liquor license or other License; 

(n) TWC Member is removed as the Administrative Member pursuant to Section 6.10 of the JV Agreement as a result of the
occurrence of (i) the event described in clause (c) of the definition of TWC Event of Default (as such term is defined in the JV Agreement) or (ii) a criminal act by TWC Member or any of its direct or indirect principals, officers,
directors or its or their respective Affiliates (the events described in this clause (n), the “JV Agreement Recourse Liabilities”), but damages, if any, shall be limited to the actual damages suffered by Lender (including
reasonable attorneys’ fees and costs reasonably incurred) for such actual breach and neither Borrower nor Guarantor shall be liable for damages pursuant to this clause (n) resulting from actions taken by Condor Member from and after Condor
Member has assumed control of the Property; 
 (o) if either (A) the Franchise Agreement (or the right to operate the
Property thereunder) shall be cancelled, surrendered or terminated by reason of any failure of Borrower or any Affiliate of Borrower to perform its obligations in connection therewith, except for a cancellation, surrender or termination arising as a
result of the operation of the default provisions of the Franchise Agreement where Rents received at the Property were insufficient during the period in question to pay all sums due and owing under the Franchise Agreement and operate the Property in
accordance with the applicable brand standards, and use of such Rents was not restricted by Lender, or (B) Borrower amends or modifies the Franchise Agreement without the prior written consent of Lender; and/or 

  
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 (p) any cost or expense incurred by Lender in connection with the enforcement of
its rights and remedies hereunder or any other Loan Document; and/or 
 (q) the breach of the covenant set forth in
Section 2.6.5 hereof. 
 Notwithstanding anything to the contrary in this Agreement or any of the Loan Documents, (A) Lender
shall not be deemed to have waived any right which Lender may have under Section 506(a), 506(b), 1111(b) or any other provisions of the Bankruptcy Code to file a claim for the full amount of the Debt or to require that all collateral shall
continue to secure all of the Debt in accordance with the Loan Documents, and (B) Lender’s agreement not to pursue personal liability of Borrower as set forth above SHALL BECOME NULL AND VOID and shall be of no further force and effect,
and the Debt shall be fully recourse to Borrower in the event that one or more of the following occurs (each, a “Springing Recourse Event”):  

(i) an Event of Default described in Section 8.1(d) hereof shall have occurred; 

(ii) a breach of the representation set forth in Section 4.1(b) hereof or a breach in the covenants set forth in
Section 5.13 hereof that results in the substantive consolidation of the assets and liabilities of Borrower with any other Person as a result of such breach; 

(iii) Borrower files a voluntary petition under the Bankruptcy Code or files a petition for bankruptcy, reorganization or
similar proceeding pursuant to any other Federal or state bankruptcy, insolvency or similar law; 
 (iv) Borrower is
substantively consolidated with any other Person; unless such consolidation was involuntary and not consented to by Borrower or Guarantor and is discharged, stayed or dismissed within sixty (60) days following the occurrence of such
consolidation; 
 (v) the filing of an involuntary petition against Borrower under the Bankruptcy Code or an involuntary
petition for bankruptcy, reorganization or similar proceeding pursuant to any other Federal or state bankruptcy, insolvency or similar law by any other Person in which (x) Borrower or any Affiliate, officer, director or representative which,
directly or indirectly, Controls Borrower colludes with or otherwise assists such Person, and/or (y) Borrower or any Affiliate, officer, director or representative which, directly or indirectly, Controls Borrower solicits or causes to be
solicited petitioning creditors for any involuntary petition against Borrower by any Person; 
 (vi) Borrower or any
Affiliate, officer, director or representative which, directly or indirectly, Controls Borrower files an answer consenting to, or otherwise acquiescing in, or joining in, any involuntary petition filed against Borrower by any other Person under the
Bankruptcy Code or any other Federal or state bankruptcy or insolvency law; 

  
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 (vii) Borrower or any Affiliate, officer, director or representative which,
directly or indirectly, Controls Borrower consents to, or acquiesces in, or joins in, an application for the appointment of a custodian, receiver, liquidator, trustee or examiner for Borrower or any portion of the Property (unless at Lender’s
express written request or direction); 
 (viii) Borrower makes an assignment for the benefit of creditors or admits, in
writing or in any legal proceeding, its insolvency or inability to pay its debts as they become due; 
 (ix) if either
(A) the Franchise Agreement (or the right to operate the Property thereunder) shall be cancelled or terminated by Borrower or any Affiliate of Borrower (provided, however, a mandatory termination of the Franchise Agreement by Franchisor
pursuant to which neither Borrower nor any Affiliate has any approval or consent rights over such termination shall not be deemed to be a termination by Borrower or any Affiliate for purposes of this clause (ix)(A)) or (B) Borrower amends or
modifies the Franchise Agreement in any material and adverse respect without the prior written consent of Lender (provided, however, a modification or amendment that is mandated by Franchisor pursuant to the terms of the Franchise Agreement pursuant
to which neither Borrower nor any Affiliate has any approval or consent rights over such modification or amendment shall not be deemed to be a modification by Borrower or any Affiliate for purposes of this clause (ix)(B)). For purposes of this
clause (ix)(B), the term “material and adverse respect” shall mean that the value of the Property is impaired, as determined by Lender in its sole but good faith discretion, by greater than 2.5% of the value of the Property prior to
implementation of such amendment); and/or 
 (x) if Guarantor, Borrower or any Affiliate of any of the foregoing, in
connection with any enforcement action or exercise or assertion of any right or remedy by or on behalf of Lender under or in connection with the Note, the Mortgage or any other Loan Document, seeks a defense, judicial intervention or injunctive or
other equitable relief of any kind or asserts in a pleading filed in connection with a judicial proceeding any defense against Lender or any right in connection with any security for the Loan, unless such defense (including the defense of
performance), judicial intervention or injunctive or other equitable relief is raised, asserted or sought in good faith. 
 10.2
Brokers and Financial Advisors Borrower hereby represents that it has dealt with no financial advisors, brokers, underwriters, placement agents, agents or finders in connection with the Loan. Borrower shall indemnify and hold Lender
harmless from and against any and all claims, liabilities, costs and expenses (including attorneys’ fees, whether incurred in connection with enforcing this indemnity or defending claims of third parties) of any kind in any way relating to or
arising from a claim by any Person that such Person acted on behalf of Borrower in connection with the transactions contemplated herein. The provisions of this Section 10.2 shall survive the expiration and termination of this Agreement
and the repayment of the Debt. 

  
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 10.3 Retention of Servicer 

(a) At the option of Lender, the Loan may be serviced by the Servicer and Lender may delegate all or any portion of its responsibilities under
this Agreement and the other Loan Documents to the Servicer pursuant to a servicing agreement (the “Servicing Agreement”) between Lender and the Servicer. Borrower shall not be responsible for any set-up fees or any other
initial costs relating to or arising under the Servicing Agreement. Borrower shall not be responsible for payment of the regular ongoing master servicing fee due to the Servicer under the Servicing Agreement. 

(b) Borrower shall pay any fees and expenses of the Servicer and any customary third-party fees and expenses in connection with a prepayment,
release of the Property, approvals under the Loan Documents requested by Borrower, assumption of Borrower’s obligations or modification of the Loan, as well as any fees and expenses in connection with the special servicing or work-out of the
Loan or enforcement of the Loan Documents, including, special servicing fees, operating or trust advisor fees (if the Loan is a specially serviced loan or in connection with a workout), work-out fees, liquidation fees, attorneys’ fees and
expenses and other fees and expenses in connection with the modification or restructuring of the Loan. 
 10.4 Survival. This
Agreement and all covenants, agreements, representations and warranties made herein and in the certificates delivered pursuant hereto shall survive the making by Lender of the Loan and the execution and delivery to Lender of the Note, and shall
continue in full force and effect so long as any of the Debt is unpaid or such longer period if expressly set forth in this Agreement. Whenever in this Agreement any of the parties hereto is referred to, such reference shall be deemed to include the
legal representatives, successors and assigns of such party. All of Borrower’s covenants and agreements in this Agreement shall inure to the benefit of the respective legal representatives, successors and assigns of Lender. 

10.5 Lender’s Discretion; Rating Agency Review Waiver. 

(a) Whenever pursuant to this Agreement or any other Loan Document, Lender exercises any right given to it to request, approve or disapprove,
or consent or withhold consent, or any arrangement or term is to be satisfactory to Lender or is to be in Lender’s discretion, the decision of Lender to request, approve or disapprove, to consent or withhold consent, or to decide whether
arrangements or terms are satisfactory or not satisfactory, or acceptable or unacceptable or in Lender’s discretion shall (except as is otherwise specifically herein provided) be in the sole and absolute discretion of Lender and shall be final
and conclusive. Additionally, whenever in this Agreement or any other Loan Document, Lender exercises any right given to it to approve or disapprove, or consent or withhold consent, or any arrangement or term is to be satisfactory to Lender in
Lender’s reasonable discretion, or Lender agrees to not withhold, condition or delay its consent, the decision of Lender to approve or disapprove, to consent, condition, delay or withhold consent, or to decide whether arrangements or terms are
satisfactory or not satisfactory, or acceptable or unacceptable or in Lender’s discretion shall (except as is otherwise specifically herein provided) be in the sole and absolute discretion of Lender while an Event of Default is continuing
unless otherwise specifically herein provided. 
 (b) Whenever, pursuant to this Agreement or any other Loan Documents, a Rating Comfort
Letter is required from each applicable Rating Agency, in the event that any applicable Rating Agency “declines review”, “waives review” or otherwise indicates in writing 

  
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or otherwise to Lender’s or Servicer’s satisfaction that no Rating Comfort Letter will or needs to be issued with respect to the matter in question (each, a “Review
Waiver”), then the Rating Comfort Letter requirement with respect to such Rating Agency shall be deemed to be satisfied with respect to such matter. It is expressly agreed and understood, however, that receipt of a Review Waiver
(i) from any one Rating Agency shall not be binding or apply with respect to any other Rating Agency and (ii) with respect to one matter shall not apply or be deemed to apply to any subsequent matter for which Rating Comfort Letter is
required. 
 (c) Prior to a Securitization or in the event that there is a Review Waiver, if Lender does not have a separate and independent
approval right with respect to the matter in question, then the term Rating Agency Confirmation shall be deemed instead to require the prior written consent of Lender. 

10.6 Governing Law. 

(a) THIS AGREEMENT WAS NEGOTIATED IN THE STATE OF NEW YORK, AND MADE BY LENDER AND ACCEPTED BY BORROWER IN THE STATE OF NEW YORK, AND THE
PROCEEDS OF THE NOTE DELIVERED PURSUANT HERETO WERE DISBURSED FROM THE STATE OF NEW YORK, WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY, AND IN ALL RESPECTS, INCLUDING
MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS AGREEMENT AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH
STATE (WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS) AND ANY APPLICABLE LAW OF THE UNITED STATES OF AMERICA, EXCEPT THAT AT ALL TIMES THE PROVISIONS FOR THE CREATION, PERFECTION, AND ENFORCEMENT OF THE LIENS CREATED PURSUANT TO THE LOAN
DOCUMENTS SHALL BE GOVERNED BY, AND CONSTRUED ACCORDING TO, THE LAW OF THE STATE, COMMONWEALTH OR DISTRICT, AS APPLICABLE, IN WHICH THE PROPERTY IS LOCATED, IT BEING UNDERSTOOD THAT, TO THE FULLEST EXTENT PERMITTED BY THE LAW OF SUCH STATE,
COMMONWEALTH OR DISTRICT, AS APPLICABLE, THE LAW OF THE STATE OF NEW YORK SHALL GOVERN THE CONSTRUCTION, VALIDITY AND ENFORCEABILITY OF ALL LOAN DOCUMENTS AND THE DEBT. TO THE FULLEST EXTENT PERMITTED BY LAW, BORROWER HEREBY UNCONDITIONALLY AND
IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS AGREEMENT AND THE NOTE, AND THIS AGREEMENT AND THE NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK PURSUANT TO
§ 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW. 
 (b) ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR BORROWER ARISING OUT OF
OR RELATING TO THIS AGREEMENT SHALL BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN NEW YORK COUNTY, NEW YORK AND BORROWER WAIVES ANY OBJECTION WHICH IT MAY NOW OR 

  
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HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND BORROWER HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUIT, ACTION OR PROCEEDING.
BORROWER AGREES THAT SERVICE OF PROCESS UPON BORROWER AT THE ADDRESS FOR BORROWER SET FORTH HEREIN AND WRITTEN NOTICE OF SAID SERVICE MAILED OR DELIVERED TO BORROWER IN THE MANNER PROVIDED HEREIN SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF
PROCESS UPON BORROWER IN ANY SUCH SUIT, ACTION OR PROCEEDING IN THE STATE OF NEW YORK. BORROWER (i) SHALL GIVE PROMPT NOTICE TO LENDER OF ANY CHANGE IN THE ADDRESS FOR BORROWER SET FORTH HEREIN, (ii) MAY AT ANY TIME AND FROM TIME TO TIME
DESIGNATE AN AUTHORIZED AGENT WITH AN OFFICE IN NEW YORK, NEW YORK (WHICH AGENT AND OFFICE SHALL BE DESIGNATED AS THE PERSON AND ADDRESS FOR SERVICE OF PROCESS), AND (iii) SHALL PROMPTLY DESIGNATE AN AUTHORIZED AGENT IF BORROWER CEASES TO HAVE
AN OFFICE IN NEW YORK, NEW YORK. NOTWITHSTANDING THE FOREGOING, LENDER SHALL HAVE THE RIGHT TO INSTITUTE ANY LEGAL SUIT, ACTION OR PROCEEDING FOR THE ENFORCEMENT OR FORECLOSURE OF ANY LIEN ON ANY COLLATERAL FOR THE LOAN IN ANY FEDERAL OR STATE COURT
IN ANY JURISDICTION(S) THAT LENDER MAY ELECT IN ITS SOLE AND ABSOLUTE DISCRETION, AND BORROWER WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND BORROWER HEREBY IRREVOCABLY
SUBMITS TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUIT, ACTION OR PROCEEDING. 
 10.7 Modification, Waiver in Writing. No
modification, amendment, extension, discharge, termination or waiver of any provision of this Agreement or of any other Loan Document, nor consent to any departure by Borrower therefrom, shall in any event be effective unless the same shall be in a
writing signed by the party or parties against whom enforcement is sought, and then such waiver or consent shall be effective only in the specific instance, and for the purpose, for which given. Except as otherwise expressly provided herein, no
notice to or demand on Borrower shall entitle Borrower to any other or future notice or demand in the same, similar or other circumstances. Neither any failure nor any delay on the part of Lender in insisting upon strict performance of any term,
condition, covenant or agreement, or exercising any right, power, remedy or privilege hereunder, or under any other Loan Document, shall operate as or constitute a waiver thereof, nor shall a single or partial exercise thereof preclude any other
future exercise, or the exercise of any other right, power, remedy or privilege. In particular, and not by way of limitation, by accepting payment after the due date of any amount payable under any Loan Document, Lender shall not be deemed to have
waived any right either to require prompt payment when due of all other amounts due under the Loan Documents, or to declare an Event of Default for failure to effect prompt payment of any such other amount. Lender shall have the right to waive or
reduce any time periods that Lender is entitled to under the Loan Documents in its sole and absolute discretion. 
 10.8 Trial by
Jury. BORROWER AND LENDER HEREBY AGREE NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVE 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 

  
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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. EITHER PARTY IS HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY THE
OTHER. 
 10.9 Headings/Schedules. The Article and/or Section headings and the Table of Contents in this Agreement are
included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose. The Schedules attached hereto, are hereby incorporated by reference as a part of this Agreement with the same force and effect
as if set forth in the body hereof. 
 10.10 Severability. Wherever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or
invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement. 
 10.11
Preferences. Upon the occurrence and continuance of an Event of Default, Lender shall have the continuing and exclusive right to apply or reverse and reapply any and all payments by Borrower to any portion of the Debt. To the extent
Borrower makes a payment to Lender, or Lender receives proceeds of any collateral, which is in whole or part subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, receiver or any other
party under any bankruptcy law, state or federal law, common law or equitable cause, then, to the extent of such payment or proceeds received, the Debt or part thereof intended to be satisfied shall be revived and continue in full force and effect,
as if such payment or proceeds had not been received by Lender. This provision shall survive the expiration or termination of this Agreement and the repayment of the Debt. 

10.12 Waiver of Notice. Borrower shall not be entitled to any notices of any nature whatsoever from Lender except with respect
to matters for which this Agreement or any other Loan Document specifically and expressly requires the giving of notice by Lender to Borrower and except with respect to matters for which Borrower is not, pursuant to applicable Legal Requirements,
permitted to waive the giving of notice. Borrower hereby expressly waives the right to receive any notice from Lender with respect to any matter for which no Loan Document specifically and expressly requires the giving of notice by Lender to
Borrower. 
 10.13 Remedies of Borrower. If a claim or adjudication is made that Lender or any of its agents, including
Servicer, has acted unreasonably or unreasonably delayed acting in any case where by law or under any Loan Document, Lender or any such agent, as the case may be, has an obligation to act reasonably or promptly, Borrower agrees that neither Lender
nor its agents, including Servicer, shall be liable for any monetary damages, and Borrower’s sole remedy shall be to commence an action seeking injunctive relief or declaratory judgment. Any action or proceeding to determine whether Lender has
acted reasonably shall be determined by an action seeking declaratory judgment. Borrower specifically waives any claim against Lender and its 

  
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agents, including Servicer, with respect to actions taken by Lender or its agents on Borrower’s behalf. Additionally, and without limiting any of the other provisions contained herein,
Borrower hereby unconditionally and irrevocably waives, to the maximum extent permitted by applicable law, any rights it may have to claim or recover against Lender in any legal action or proceeding any special, exemplary, punitive or consequential
damages. 
 10.14 Prior Agreements. This Agreement 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, understandings and negotiations among or between such parties, whether oral or written, are superseded by the terms of this Agreement and
the other Loan Documents. 
 10.15 Offsets, Counterclaims and Defenses. Borrower hereby waives the right to assert a
counterclaim, other than a compulsory counterclaim, in any action or proceeding brought against it by Lender or its agents, including Servicer, or otherwise offset any obligations to make payments required under the Loan Documents. Any assignee of
Lender’s interest in and to the Loan Documents shall take the same free and clear of all offsets, counterclaims or defenses which Borrower may otherwise have against any assignor of such documents, and no such offset, counterclaim or defense
shall be interposed or asserted by Borrower in any action or proceeding brought by any such assignee upon such documents, and any such right to interpose or assert any such offset, counterclaim or defense in any such action or proceeding is hereby
expressly waived by Borrower. 
 10.16 Publicity. All news releases, publicity or advertising by Borrower or its Affiliates
through any media intended to reach the general public, which refers to the Loan Documents, the Loan, Lender or any member of the Lender Group, a Loan purchaser, the Servicer or the trustee in a Secondary Market Transaction, shall be subject to the
prior written approval of Lender, unless such disclosure is required in accordance with applicable Legal Requirements. Lender shall have the right to issue any of the foregoing without Borrower’s approval. 

10.17 No Usury. Borrower and Lender intend at all times to comply with applicable state law or applicable United States federal
law (to the extent that it permits Lender to contract for, charge, take, reserve or receive a greater amount of interest than under state law) and that this Section 10.17 shall control every other agreement in the Loan Documents. If the
applicable law (state or federal) is ever judicially interpreted so as to render usurious any amount called for under the Note or any other Loan Document, or contracted for, charged, taken, reserved or received with respect to the Debt, or if
Lender’s exercise of the option to accelerate the maturity of the Loan or any prepayment by Borrower results in Borrower having paid any interest in excess of that permitted by applicable law, then it is Borrower’s and Lender’s
express intent that all excess amounts theretofore collected by Lender shall be credited against the unpaid Principal and all other Debt (or, if the Debt has been or would thereby be paid in full, refunded to Borrower), and the provisions of the
Loan Documents immediately be deemed reformed and the amounts thereafter collectible thereunder reduced, without the necessity of the execution of any new document, so as to comply with applicable law, but so as to permit the recovery of the fullest
amount otherwise called for thereunder. All sums paid or agreed to be paid to Lender for the use, forbearance or detention of the Loan shall, to the extent permitted by applicable law, be 

  
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amortized, prorated, allocated, and spread throughout the full stated term of the Loan until payment in full so that the rate or amount of interest on account of the Debt does not exceed the
maximum lawful rate from time to time in effect and applicable to the Debt for so long as the Debt is outstanding. Notwithstanding anything to the contrary contained in any Loan Document, it is not the intention of Lender to accelerate the maturity
of any interest that has not accrued at the time of such acceleration or to collect unearned interest at the time of such acceleration. 

10.18 Conflict; Construction of Documents; Reliance. In the event of any conflict between the provisions of this Agreement and
any of the other Loan Documents, the provisions of this Agreement shall control. The parties hereto acknowledge that each is represented by separate counsel in connection with the negotiation, drafting, execution and delivery of the Loan Documents
and that the Loan Documents shall not be subject to the principle of construing their meaning against the party that drafted them. Borrower acknowledges that, with respect to the Loan, Borrower shall rely solely on its own judgment and advisors in
entering into the Loan, without relying in any manner on any statements, representations or recommendations of Lender or any parent, subsidiary or affiliate of Lender. Lender shall not be subject to any limitation whatsoever in the exercise of any
rights or remedies available to it under any of the Loan Documents or any other agreements or instruments which govern the Loan by virtue of the ownership by it or any parent, subsidiary or affiliate of Lender of any equity interest any of them may
acquire in Borrower, and Borrower hereby irrevocably waives the right to raise any defense or take any action on the basis of the foregoing with respect to Lender’s exercise of any such rights or remedies. Borrower acknowledges that Lender
engages in the business of real estate financings and other real estate transactions and investments which may be viewed as adverse to or competitive with the business of Borrower or its Affiliates. 

10.19 No Joint Venture or Partnership; No Third Party Beneficiaries. 

(a) Borrower and Lender intend that the relationships created under the Loan Documents be solely that of borrower and lender. Nothing herein
or therein is intended to create a joint venture, partnership, tenancy-in-common or joint tenancy relationship between Borrower and Lender nor to grant Lender any interest in the Property other than that of mortgagee, beneficiary or lender. 

(b) The Loan Documents are solely for the benefit of Lender and Borrower and nothing contained in any Loan Document shall be deemed to confer
upon anyone other than Lender and Borrower any right to insist upon or to enforce the performance or observance of any of the obligations contained therein. 

10.20 Spread Maintenance Premium. Borrower acknowledges that (a) Lender is making the Loan in consideration of the receipt
by Lender of all interest and other benefits intended to be conferred by the Loan Documents and (b) if payments of Principal are made to Lender prior to the Stated Maturity Date, for any reason whatsoever, whether voluntary, as a result of
Lender’s acceleration of the Loan after an Event of Default, by operation of law or otherwise, Lender will not receive all such interest and other benefits and may, in addition, incur costs. For these reasons, and to induce Lender to make the
Loan, Borrower agrees that, except as expressly provided in Article 7 hereof, all prepayments, if any, whether voluntary or involuntary, will be accompanied by the Spread Maintenance Premium applicable thereto; provided,
however, 

  
 97 

 
that the foregoing shall not be deemed to imply that the Loan may be voluntarily prepaid in any manner or under any circumstance other than as expressly set forth in this Agreement. Such Spread
Maintenance Premium shall be required whether payment is made by Borrower, by a Person on behalf of Borrower, or by the purchaser at any foreclosure sale, and may be included in any bid by Lender at such sale. Borrower further acknowledges that:
(i) it is a knowledgeable real estate developer and/or investor; (ii) it fully understands the effect of the provisions of this Section 10.20, as well as the other provisions of the Loan Documents; (iii) the making of the
Loan by Lender at the Interest Rate and other terms set forth in the Loan Documents are sufficient consideration for Borrower’s obligation to pay a Spread Maintenance Premium (if required); and (iv) Lender would not make the Loan on the
terms set forth herein without the inclusion of such provisions. Borrower also acknowledges that the provisions of this Agreement limiting the right of prepayment and providing for the payment of the Spread Maintenance Premium and other charges
specified herein were independently negotiated and bargained for, and constitute a specific material part of the consideration given by Borrower to Lender for the making of the Loan except as expressly permitted hereunder. 

10.21 Assignments and Participations. 

(a) In addition to any other rights of Lender hereunder, the Loan, the Note, the Loan Documents and/or Lender’s rights, title,
obligations and interests therein may be sold, assigned, participated or otherwise transferred by Lender and any of its successors and assigns to any Person at any time in its sole and absolute discretion, in whole or in part, whether by operation
of law (pursuant to a merger or other successor in interest) or otherwise without notice to or consent from Borrower or any other Person. Upon such assignment, all references to Lender in this Agreement and in any Loan Document shall be deemed to
refer to such assignee or successor in interest and such assignee or successor in interest shall thereafter stand in the place of Lender in all respects. Except as expressly permitted herein, Borrower may not assign its rights, title, interests or
obligations under this Agreement or under any of the Loan Documents. 
 (b) Lender or its designee, acting for this purpose solely as a
non-fiduciary agent of Borrower, shall maintain a register (the “Register”) for the recordation of the name and address of each transferee of the Loan or any direct interest therein (i.e., not a participation interest
therein) and the outstanding principal, accrued and unpaid interest and other fees due such transferee. Lender or its designee shall make the Register available to Borrower upon Borrower’s request. Entries in the Register shall be conclusive
absent manifest error. Borrower acknowledges that Lender’s agreement to maintain the Register is an accommodation for Borrower’s benefit and therefore Borrower acknowledges that Lender shall have no liability whatsoever to Borrower or to
any other Person, nor shall Borrower be entitled to any offsets, claims or defenses against Lender or with respect to the Loan or any of the Loan Documents, as a result of Lender’s failure to properly maintain the Register. 

10.22 Waiver of Marshalling of Assets. To the fullest extent permitted by law, Borrower, for itself and its successors and
assigns, waives all rights to a marshalling of the assets of Borrower, Borrower’s members or partners, as applicable, and others with interests in Borrower, and of the Property, and shall not assert any right under any laws pertaining to the
marshalling of assets, the sale in inverse order of alienation, homestead exemption, the 

  
 98 

 
administration of estates of decedents, or any other matters whatsoever to defeat, reduce or affect the right of Lender under the Loan Documents to a sale of the Property for the collection of
the Debt without any prior or different resort for collection, or of the right of Lender to the payment of the Debt out of the net proceeds of the Property in preference to every other claimant whatsoever. 

10.23 Joint and Several Liability. If more than one Person has executed this Agreement as “Borrower,”
the representations, covenants, warranties and obligations of all such Persons hereunder shall be joint and several. 
 10.24 Creation
of Security Interest. Notwithstanding any other provision set forth in this Agreement, the Note, the Mortgage or any of the other Loan Documents, Lender may at any time create a security interest in all or any portion of its rights under
this Agreement, the Note, the Mortgage and any other Loan Document (including the advances owing to it) in favor of any Federal Reserve Bank in accordance with Regulation A of the Board of Governors of the Federal Reserve System. 

10.25 Certain Additional Rights of Lender. Subject to the last sentence of this Section 10.25, Lender shall have:

 (a) the right to routinely consult with Borrower’s management regarding the significant business activities and business and
financial developments of Borrower, provided, however, that such consultations shall not include discussions of environmental compliance programs or disposal of hazardous substances. Consultation meetings should occur on a regular basis (no less
frequently than quarterly) with Lender having the right to call special meetings at any reasonable times; 
 (b) the right, in accordance
with the terms of this Agreement, to examine the books and records of Borrower at any time upon reasonable notice; 
 (c) the right, in
accordance with the terms of this Agreement, to receive monthly, quarterly and year-end financial reports, including balance sheets, statements of income, shareholders’ equity and cash flow, a management report and schedules of outstanding
indebtedness; 
 (d) the right, without restricting any other rights of Lender under this Agreement (including any similar right), to
restrict financing to be obtained with respect to the Property so long as any portion of the Debt remains outstanding; 
 (e) the right,
without restricting any other right of Lender under this Agreement or the other Loan Documents (including any similar right), to restrict, upon the occurrence of an Event of Default, Borrower’s payments of management, consulting, director or
similar fees to Affiliates of Borrower from the Rents; 
 (f) the right, without restricting any other rights of Lender under this Agreement
(including any similar right), to approve any acquisition by Borrower of any other significant property (other than personal property required for the day to day operation of the Property); and 

  
 99 

 (g) the right, without restricting any other rights of Lender under this Agreement (including any
similar right), to restrict the transfer of interests in Borrower held by its members, and the right to restrict the transfer of interests in such member, except for any transfer that is a Permitted Transfer. 

The rights described above may be exercised directly or indirectly by any Person that owns substantially all of the ownership interests in Lender. The
provisions of this Section are intended to satisfy the requirement of management rights for purposes of the Department of Labor “plan assets” regulation 29 C.F.R., Section 2510.3-101. For the avoidance of doubt, in no event
shall any of the rights of Lender set forth in this Section 10.25 expand any rights of Lender provided in any other provision of this Loan Agreement or in any of the other Loan Documents. 

10.26 Set-Off. In addition to any rights and remedies of Lender provided by this Agreement and by law, Lender shall have the
right in its sole discretion, without prior notice to Borrower, any such notice being expressly waived by Borrower to the extent permitted by applicable law, upon any amount becoming due and payable by Borrower hereunder (whether at the stated
maturity, by acceleration or otherwise) to set-off and appropriate and apply against such amount any and all deposits (general or special, time or demand, provisional or final), in any currency, and any other credits, indebtedness or claims, in any
currency, in each case whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or owing by Lender or any Affiliate thereof to or for the credit or the account of Borrower. Lender agrees promptly to notify Borrower
after any such set-off and application made by Lender; provided that the failure to give such notice shall not affect the validity of such set-off and application. 

10.27 Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered
shall be an original, but all of which shall together constitute one and the same instrument. 
 10.28 Negation of Implied Right to
Cure Events of Default. Notwithstanding anything contained in this Agreement or any of the other Loan Documents providing that certain rights, remedies or privileges are only available to Lender during the “continuance” of an Event
of Default (or words of similar import), Borrower expressly acknowledges and agrees that it does not have the right to cure an Event of Default once the same has occurred under this Agreement or any other Loan Document and Lender has delivered
Borrower written notice of such Event of Default, in each case without the consent of Lender, which consent may be withheld, delayed or denied by Lender in its sole and absolute discretion. 

10.29 Acknowledgement and Consent to Bail-In of EEA Financial Institutions. 

(a) Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among the respective
parties thereto, each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the write-down and conversion powers of an EEA
Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by: 

  
 100 

 (i) the application of any Write-Down and Conversion Powers by an EEA Resolution
Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and 

(ii) the effects of any Bail-in Action on any such liability, including, if applicable: 

(A) a reduction in full or in part or cancellation of any such liability; 

(B) a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial
Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such
liability under this Agreement or any other Loan Document; or 
 (C) the variation of the terms of such liability in
connection with the exercise of the write-down and conversion powers of any EEA Resolution Authority. 
 (b) As used in this
Section 10.29 the following terms have the following meanings ascribed thereto: 
 (i) “Bail-In
Action” means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution; 

(ii) “Bail-In Legislation” means, with respect to any EEA Member Country implementing Article 55 of
Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule; 

(iii) “EEA Financial Institution” means (A) any credit institution or investment firm established
in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority; (B) any entity established in an EEA Member Country which is a parent of an institution described in clause (A) of this definition, or
(C) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (A) or (B) of this definition and is subject to consolidated supervision with its parent;

 (iv) “EEA Member Country” means any of the member states of the European Union, Iceland,
Liechtenstein, and Norway; 
 (v) “EEA Resolution Authority” means any public administrative
authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution; 

  
 101 

 (vi) “EU Bail-In Legislation Schedule” means the EU
Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time; and 

(vii) “Write-Down and Conversion Powers” means, with respect to any EEA Resolution Authority, the
write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule.

 Nothing in this Section 10.29 shall result in any increased cost to Borrower in any material respect. 

[Remainder of Page Intentionally Left Blank; Signature Pages Follow] 

  
 102 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by
their duly authorized representatives, all as of the day and year first above written. 
  

											
	 BORROWER:
  

SPRING STREET HOTEL PROPERTY LLC

		
	By:	 	 Spring Street Hotel Property II LLC,

its sole member

			
		 	By:	 	 TWC Spring Hotel LLC,
 its
Administrative Member

				
		 		 	By:	 	 TWC Spring Street Hotel GP LLC,

its Managing Member

					
		 		 		 	By:	 	 /s/ Alan Kanders

		 		 		 		 	Alan Kanders, Manager

  

											
	SPRING STREET HOTEL OPCO LLC
		
	By:	 	 Spring Street Hotel OpCo II LLC,

its sole member

			
		 	By:	 	 TWC Spring OpCo LLC,
 its
Administrative Member

				
		 		 	By:	 	 TWC Spring Street Hotel GP LLC,

its Managing Member

					
		 		 		 	By:	 	 /s/ Alan Kanders

		 		 		 		 	Alan Kanders, Manager

 [Signatures continue on following page] 

 
			
	 LENDER:
  

LOANCORE CAPITAL CREDIT REIT LLC
 a Delaware limited
liability company

		
	By:	 	/s/ Richard Small
		 	Name: Richard Small
		 	Title: Managing Director

 Schedule 1 

Required Repairs 
  

									
	 Required Repair Item
	  	Estimated
Cost	 	  	Reserve Deposit
Amount (125%)
of Estimated
Cost	 
	 1. ADA Guestroom Communication Kits
	  	$	5,100	  	  	$	6,375	  
		  				  	  
	  
	 
	 Total Reserved:
	  				  	$	6,375	  

  
 Sch. 1-1 

 Schedule 2 

Exceptions to Representations and Warranties 

None. 

  
 Sch. 2-1 

 Schedule 3 

Release Parcel 

  
 Sch. 3-1 

 Schedule 4 

Organization of Borrower 

[see attached page(s)] 

  
 Sch. 4-1 

 Schedule 5 

Definition of Special Purpose Bankruptcy Remote Entity 

(I) A “Special Purpose Bankruptcy Remote Entity” means (x) a limited liability company that is a Single Member Bankruptcy Remote
LLC or (y) a corporation, limited partnership or limited liability company which at all times since its formation and at all times thereafter: 

(i) was and will be organized solely for the purpose of (A) owning the Property (or with respect to Leasehold Borrower,
leasing the Property) or (B) acting as a general partner of the limited partnership that owns the Property or member of the limited liability company that owns the Property, and all activities incidental thereto; 

(ii) has not engaged and will not engage in any business unrelated to (A) the ownership (or with respect to Leasehold
Borrower, the leasing) of the Property, (B) acting as general partner of the limited partnership that owns the Property or (C) acting as a member of the limited liability company that owns the Property, as applicable; 

(iii) has not had and will not have any assets other than those related to the Property or its partnership or member interest
in the limited partnership or limited liability company that owns the Property, as applicable; 
 (iv) has not engaged,
sought or consented to and will not engage in, seek or consent to any dissolution, winding up, liquidation, consolidation, merger, asset sale (except as expressly permitted by this Agreement), transfer of partnership or membership interests or the
like, or amendment of its limited partnership agreement, articles of incorporation, articles of organization, certificate of formation or operating agreement (as applicable); 

(v) if such entity is a limited partnership, has and will have, as its only general partners, Special Purpose Bankruptcy
Remote Entities that are corporations; 
 (vi) if such entity is a corporation, has and will have at least two
(2) Independent Directors, and has not caused or allowed and will not cause or allow the board of directors of such entity to take any action requiring the unanimous affirmative vote of 100% of the members of its board of directors unless all
of the directors and all Independent Directors shall have participated in such vote, and the organizational documents of such entity shall provide that no Independent Director may be removed or replaced without Cause and unless such entity provides
Lender with not less than three (3) Business Days’ prior written notice of (a) any proposed removal of an Independent Director, together with a statement as to the reasons for such removal, and (b) the identity of the proposed
replacement Independent Director, together with a certification that such replacement satisfies the requirements set forth in the organizational documents for an Independent Director; 

(vii) if such entity is a limited liability company, has and will have at least one member that has been and will be a Special
Purpose Bankruptcy Remote Entity that has been and will be a corporation and such corporation is the managing member of such limited liability company; 

  
 Sch. 5-1 

 (viii) if such entity is a limited liability company, has and will have articles
of organization, a certificate of formation and/or an operating agreement, as applicable, providing that (A) such entity will dissolve only upon the bankruptcy of the managing member, (B) the vote of a majority-in-interest of the remaining
members is sufficient to continue the life of the limited liability company in the event of such bankruptcy of the managing member and (C) if the vote of a majority-in-interest of the remaining members to continue the life of the limited
liability company following the bankruptcy of the managing member is not obtained, the limited liability company may not liquidate the Property without the consent of the applicable Rating Agencies for as long as the Loan is outstanding; 

(ix) has not, and without the unanimous consent of all of its partners, directors or members (including all Independent
Directors), as applicable, will not, with respect to itself or to any other entity in which it has a direct or indirect legal or beneficial ownership interest (A) file a bankruptcy, insolvency or reorganization petition or otherwise institute
insolvency proceedings or otherwise seek any relief under any laws relating to the relief from debts or the protection of debtors generally, (B) seek or consent to the appointment of a receiver, liquidator, assignee, trustee, sequestrator,
custodian or any similar official for such entity or for all or any portion of such entity’s properties, (C) make any assignment for the benefit of such entity’s creditors or (D) take any action that might cause such entity to
become insolvent; 
 (x) has remained and intends to remain solvent and has maintained and intends to maintain adequate
capital in light of its contemplated business operations; 
 (xi) has not failed and will not fail to correct any known
misunderstanding regarding the separate identity of such entity; 
 (xii) has maintained and will maintain its accounts,
books and records separate from any other Person and will file its own tax returns separate from those of any other Person; 

(xiii) has maintained and will maintain its books, records, resolutions and agreements as official records; 

(xiv) except as contemplated by this Agreement and/or the other Loan Documents, has not commingled and will not commingle its
funds or assets with those of any other Person; 
 (xv) has held and will hold its assets solely in its own name (except
such personalty that has been transferred from one Borrower to the other Borrower); 
 (xvi) has conducted and will conduct
its business solely in its name, 

  
 Sch. 5-2 

 (xvii) has maintained and will maintain its financial statements, accounting
records and other entity documents separate from any other Person, except that its assets may be listed on a consolidated financial statement of an Affiliate; provided, however, that (A) any such consolidated financial statement shall contain a
note indicating that its separate assets and liabilities are neither available to pay the debts of the consolidated Person nor constitute obligations of the consolidated Person and (B) such assets shall be listed on its own separate balance
sheet; 
 (xviii) has maintained a sufficient number of employees, if any, in light of its contemplated business operations
and has paid and will pay its own liabilities, including the salaries of its own employees, solely out of its own funds and assets; 

(xix) has observed and will observe all partnership, corporate or limited liability company formalities, as applicable, in all
material respects; 
 (xx) has maintained and will maintain an arm’s-length relationship with its Affiliates; 

(xxi)(a) if such entity owns the Property, has no and will not have any indebtedness other than Permitted Indebtedness,
or (b) if such entity acts as the general partner of a limited partnership which owns the Property, has not and will not have any indebtedness other than unsecured trade payables in the ordinary course of business relating to acting as general
partner of the limited partnership which owns the Property which (1) do not exceed, at any time, $10,000 and (2) are paid within thirty (30) days of the date incurred, or (c) if such entity acts as a managing member of a limited
liability company which owns the Property, has and will have no indebtedness other than unsecured trade payables in the ordinary course of business relating to acting as a member of the limited liability company which owns the Property which
(1) do not exceed, at any time, $10,000 and (2) are paid within thirty (30) days of the date incurred; 

(xxii) has not and will not assume or guarantee or become obligated for the debts of any other Person or hold out its credit
as being available to satisfy the obligations of any other Person nd has not and will not permit any Affiliate to assume or guarantee or become obligated for its debts other than, with respect to Borrower, the Guarantor in connection with the Loan
and the Franchise Agreement; 
 (xxiii) has not and will not acquire obligations or securities of its partners, members or
shareholders; 
 (xxiv) has allocated and will allocate fairly and reasonably shared expenses with Affiliates, including,
without limitation, shared office space, and uses separate stationery, invoices and checks bearing its own name; 
 (xxv)
except to the Lender in connection with the Loan, has not pledged and will not pledge its assets for the benefit of any other Person; 

  
 Sch. 5-3 

 (xxvi) has held itself out and identified itself and will hold itself out and
identify itself as a separate and distinct entity under its own name and not as a division or part of any other Person; 

(xxvii) has maintained and will maintain its assets in such a manner that it will not be costly or difficult to segregate,
ascertain or identify its individual assets from those of any other Person; 
 (xxviii) has not made and will not make loans
to any Person and has not permitted and will not permit any Affiliate to make any loans to it; 
 (xxix) has not identified
and will not identify its partners, members or shareholders, or any Affiliate of any of them, as a division or part of it; 

(xxx) has not entered into or been a party to, and will not enter into or be a party to, any transaction with its partners,
members, shareholders or Affiliates except in the ordinary course of its business and on terms which are intrinsically fair and substantially similar to those that would be obtained in a comparable arm’s-length transaction with an unrelated
third party; 
 (xxxi) has and will have no obligation to indemnify its partners, officers, directors, members or Special
Members, as the case may be, or has such an obligation that is fully subordinated to the Debt and will not constitute a claim against it if cash flow in excess of the amount required to pay the Debt is insufficient to pay such obligation; 

(xxxii) has and will have an express acknowledgment in its organizational documents that Lender is an intended third-party
beneficiary of the “special purpose” provisions of such organizational documents; and 
 (xxxiii) will consider
the interests of its creditors in connection with all corporate, partnership or limited liability company actions, as applicable. 
 (II) “Single
Member Bankruptcy Remote LLC” means a limited liability company organized under the laws of the State of Delaware which at all times since its formation and at all times thereafter: 

(i) was and will be organized solely for the purpose of owning the Property (or with respect to Leasehold Borrower, leasing
the Property) and all activities incidental thereto; 
 (ii) has not engaged and will not engage in any business unrelated
to the ownership (or with respect to Leasehold Borrower, the leasing) of the Property; 
 (iii) has not had and will not
have any assets other than those related to the Property; 
 (iv) has not engaged, sought or consented to and will not
engage in, seek or consent to any dissolution, winding up, liquidation, consolidation, merger, asset sale (except as expressly permitted by this Agreement), transfer of partnership or membership interests or the like, or amendment of its limited
liability company agreement or certificate of formation; 

  
 Sch. 5-4 

 (v) has not, and without the unanimous consent of all of directors (including all
Independent Directors), as applicable, will not, with respect to itself or to any other entity in which it has a direct or indirect legal or beneficial ownership interest (A) file a bankruptcy, insolvency or reorganization petition or otherwise
institute insolvency proceedings or otherwise seek any relief under any laws relating to the relief from debts or the protection of debtors generally, (B) seek or consent to the appointment of a receiver, liquidator, assignee, trustee,
sequestrator, custodian or any similar official for such entity or for all or any portion of such entity’s properties, (C) make any assignment for the benefit of such entity’s creditors or (D) take any action that might cause
such entity to become insolvent; 
 (vi) has remained and intends to remain solvent and has maintained and intends to
maintain adequate capital in light of its contemplated business operations; 
 (vii) has not failed and will not fail to
correct any known misunderstanding regarding the separate identity of such entity; 
 (viii) has maintained and will
maintain its books, records, resolutions and agreements as official records; 
 (ix) except as contemplated by this
Agreement and/or the other Loan Documents, has not commingled and will not commingle its funds or assets with those of any other Person; 

(x) has held and will hold its assets solely in its own name; 

(xi) has conducted and will conduct its business solely in its name, 

(xii) has maintained and will maintain its financial statements, accounting records and other entity documents separate from
any other Person, except that its assetse may be listed on a consolidated financial statement of an Affiliate; provided, however, that any such consolidated financial statement shall contain a note indicating that its separate assets and liabilities
are neither available to pay the debts of the consolidated Person nor constitute obligations of the consolidated Person and (B) such assets shall be listed on its own separate balance sheet; 

(xiii) has maintained a sufficient number of employees, if any, in light of its contemplated business operations and has paid
and will pay its own liabilities, including the salaries of its own employees, solely out of its own funds and assets; 

(xiv) has observed and will observe all limited liability company formalities, in all material respects; 

  
 Sch. 5-5 

 (xv) has maintained and will maintain an arm’s-length relationship with its
Affiliates; 
 (xvi) has not and will not have any indebtedness other than Permitted Indebtedness; 

(xvii) has not and will not assume or guarantee or become obligated for the debts of any other Person or hold out its credit
as being available to satisfy the obligations of any other Person and will not permit any Affiliate to assume or guarantee or become obligated for its debts; 

(xviii) has not and will not acquire obligations or securities of its partners, members or shareholders; 

(xix) has allocated and will allocate fairly and reasonably shared expenses with Affiliates, including, without limitation,
shared office space, and uses separate stationery, invoices and checks bearing its own name; 
 (xx) except to the Lender in
connection with the Loan, has not pledged and will not pledge its assets for the benefit of any other Person; 
 (xxi) has
held itself out and identified itself and will hold itself out and identify itself as a separate and distinct entity under its own name and not as a division or part of any other Person; 

(xxii) has maintained and will maintain its assets in such a manner that it will not be costly or difficult to segregate,
ascertain or identify its individual assets from those of any other Person; 
 (xxiii) has not made and will not make loans
to any Person and has not permitted and will not permit any Affiliate to make any loans to it; 
 (xxiv) has not identified
and will not identify its members or any Affiliate of any of them, as a division or part of it; 
 (xxv) has not entered
into or been a party to, and will not enter into or be a party to, any transaction with its partners, members, shareholders or Affiliates except in the ordinary course of its business and on terms which are intrinsically fair and substantially
similar to those that would be obtained in a comparable arm’s-length transaction with an unrelated third party; 

(xxvi) has and will have no obligation to indemnify its partners, officers, directors, members or Special Members, as the case
may be, or has such an obligation that is fully subordinated to the Debt and will not constitute a claim against it if cash flow in excess of the amount required to pay the Debt is insufficient to pay such obligation; 

  
 Sch. 5-6 

 (xxvii) has and will have an express acknowledgment in its organizational
documents that Lender is an intended third-party beneficiary of the “special purpose” provisions of such organizational documents; 

(xxviii) will consider the interests of its creditors in connection with all limited liability company actions; 

(xxix) has maintained and will maintain its accounts, books and records separate from any other person; 

(xxx) has and will have an operating agreement which provides that the business and affairs of Borrower shall be managed by or
under the direction of a board of one or more directors designated by Sole Member, and at all times there shall be at least two (2) duly appointed Independent Directors on the board of directors, and the board of directors will not take any
action requiring the unanimous affirmative vote of 100% of the members of its board of directors unless, at the time of such action there are at least two (2) members of the board of directors who are Independent Directors, and all of the
directors and all Independent Directors shall have participated in such vote; 
 (xxxi) has and will have an operating
agreement which provides that, as long as any portion of the Debt remains outstanding, (A) upon the occurrence of any event that causes Sole Member to cease to be a member of Borrower (other than (x) upon an assignment by Sole Member of
all of its limited liability company interest in Borrower and the admission of the transferee, if permitted pursuant to the organizational documents of Borrower and the Loan Documents, or (y) the resignation of Sole Member and the admission of
an additional member of Borrower, if permitted pursuant to the organizational documents of Borrower and the Loan Documents), the person acting as an Independent Director of Borrower shall, without any action of any Person and simultaneously with
Sole Member ceasing to be a member of Borrower, automatically be admitted as the sole member of Borrower (the “Special Member”) and shall preserve and continue the existence of Borrower without dissolution, (B) no
Special Member may resign or transfer its rights as Special Member unless (x) a successor Special Member has been admitted to Borrower as a Special Member, and (y) such successor Special Member has also accepted its appointment as an
Independent Director, (C) no Independent Director may be removed or replaced without Cause and unless the company provides Lender with not less than three (3) Business Days’ prior written notice of (a) any proposed removal of an
Independent Director, together with a statement as to the reasons for such removal, and (b) the identity of the proposed replacement Independent Director, together with a certification that such replacement satisfies the requirements set forth
in the organizational documents for an Independent Director except in the event of death or legal incapacity of an Independent Director, (D) to the greatest extent permitted by law, except for duties to Borrower (including duties to the members
of Borrower solely to the extent of their respective economic interest in Borrower and to Borrower’s creditors), such Independent Director shall not owe any fiduciary duties to, and shall not consider, in acting or otherwise voting on any
matter for which their approval is required, the interests of (i) the members of Borrower, (ii) other Affiliates of Borrower, or (iii) any group of Affiliates of which Borrower is a part); provided,
however, the foregoing shall not eliminate the implied contractual covenant of good faith and fair dealing and (E) except as expressly permitted pursuant to the terms of this Agreement, Sole Member may not resign and no additional
member shall be admitted to Borrower; and 

  
 Sch. 5-7 

 (xxxii) has and will have an operating agreement which provides that, as long as
any portion of the Debt remains outstanding, (A) Borrower shall be dissolved, and its affairs shall be wound up only upon the first to occur of the following: (x) the termination of the legal existence of the last remaining member of
Borrower or the occurrence of any other event which terminates the continued membership of the last remaining member of Borrower in Borrower unless the business of Borrower is continued in a manner permitted by its operating agreement or the
Delaware Limited Liability Company Act (the “Delaware Act”) or (y) the entry of a decree of judicial dissolution under Section 18-802 of the Delaware Act; (B) upon the
occurrence of any event that causes the last remaining member of Borrower to cease to be a member of Borrower or that causes Sole Member to cease to be a member of Borrower (other than (x) upon an assignment by Sole Member of all of its limited
liability company interest in Borrower and the admission of the transferee, if permitted pursuant to the organizational documents of Borrower and the Loan Documents, or (y) the resignation of Sole Member and the admission of an additional
member of Borrower, if permitted pursuant to the organizational documents of Borrower and the Loan Documents), to the fullest extent permitted by law, the personal representative of such member shall be authorized to, and shall, within 90 days after
the occurrence of the event that terminated the continued membership of such member in Borrower, agree in writing to continue the existence of Borrower and to the admission of the personal representative or its nominee or designee, as the case may
be, as a substitute member of Borrower, effective as of the occurrence of the event that terminated the continued membership of such member in Borrower; (C) the bankruptcy of Sole Member or a Special Member shall not cause such member or
Special Member, respectively, to cease to be a member of Borrower and upon the occurrence of such an event, the business of Borrower shall continue without dissolution; (D) in the event of dissolution of Borrower, Borrower shall conduct only
such activities as are necessary to wind up its affairs (including the sale of the assets of Borrower in an orderly manner), and the assets of Borrower shall be applied in the manner, and in the order of priority, set forth in Section 18-804 of the Delaware Act; and (E) to the fullest extent permitted by law, each of Sole Member and the Special Members shall irrevocably waive any right or power that they might have to cause
Borrower or any of its assets to be partitioned, to cause the appointment of a receiver for all or any portion of the assets of Borrower, to compel any sale of all or any portion of the assets of Borrower pursuant to any applicable law or to file a
complaint or to institute any proceeding at law or in equity to cause the dissolution, liquidation, winding up or termination of Borrower. 
 (III)
“Cause” shall mean, with respect to an Independent Director or Independent Manager, (i) acts or omissions by such Independent Director or Independent Manager, as applicable, that constitute willful disregard of, or gross
negligence with respect to such Independent Director’s or Independent Manager’s, as applicable, duties, (ii) such Independent Director or Independent Manager, as applicable, has engaged in or has been charged with or has been indicted
or convicted for any crime or crimes of fraud or other acts constituting a crime under any law applicable to such Independent Director or Independent Manager, as applicable, (iii) such 

  
 Sch. 5-8 

 
Independent Director or Independent Manager, as applicable, has breached its fiduciary duties of loyalty and care as and to the extent of such duties in accordance with the terms of the
Borrower’s organizational documents, (iv) there is a material increase in the fees charged by such Independent Director or Independent Manager, as applicable, or a material change to such Independent Director’s or Independent
Manager’s, as applicable, terms of service, (v) such Independent Director or Independent Manager, as applicable, is unable to perform his or her duties as Independent Director or Independent Manager, as applicable, due to death, disability
or incapacity, (vi) such Person no longer meets the criteria provided in the definition of Independent Director or Independent Manager, as applicable or (vii) the death or legal incapacity of such Independent Director or Independent
Manager. 
 (IV) “Independent Director” or “Independent Manager” means a natural person selected by Borrower
(a) with prior experience as an independent director, independent manager or independent member, (b) with at least three (3) years of employment experience, (c) who is provided by a Nationally Recognized Service Company (defined
below), (d) who is duly appointed as an Independent Director or Independent Manager and is not, will not be while serving as Independent Director or Independent Manager (except pursuant to an express provision in Borrower’s operating
agreement providing for the appointment of such Independent Director or Independent Manager to become a “special member” upon Sole Member ceasing to be a member of Borrower) and shall not have been at any time during the preceding five
(5) years, any of the following: 
 (i) a stockholder, director (other than as an Independent Director), officer, employee, partner,
attorney or counsel of Borrower, any Affiliate of Borrower or any direct or indirect parent of Borrower; 
 (ii) a customer, supplier or
other Person who derives any of its purchases or revenues from its activities with Borrower or any Affiliate of Borrower; 
 (iii) a Person
or other entity Controlling or under Common Control with any such stockholder, partner, customer, supplier or other Person; or 
 (iv) a
member of the immediate family of any such stockholder, director, officer, employee, partner, customer, supplier or other Person. 
 A natural person who
otherwise satisfies the foregoing definition and satisfies subparagraph (i) by reason of being the Independent Director or Independent Manager of a “special purpose entity” affiliated with Borrower shall be qualified to serve as an
Independent Director or Independent Manager of Borrower, provided that the fees that such individual earns from serving as Independent Director or Independent Manager of affiliates of Borrower in any given year constitute in the aggregate less than
five percent (5%) of such individual’s annual income for that year. 
 A natural person who satisfies the foregoing definition other than clause
(ii) shall not be disqualified from serving as an Independent Director or Independent Manager of Borrower if such individual is an independent director, independent manager or special manager provided by a Nationally Recognized Service Company
that provides professional independent directors, independent managers and special managers and also provides other corporate services in the ordinary course of its business. 

  
 Sch. 5-9 

 (V) “Nationally Recognized Service Company” means any of CT Corporation, Corporation
Service Company, National Registered Agents, Inc., Wilmington Trust Company, National Corporate Research, Ltd. or such other nationally recognized company that provides independent director, independent manager or independent member services and
that is reasonably satisfactory to Lender, in each case that is not an Affiliate of Borrower and that provides professional independent directors and other corporate services in the ordinary course of its business. 

  
 Sch. 5-10 

 Schedule 6 

Intellectual Property/Websites 

None. 

  
 Sch. 7

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