Document:

EMPLOYMENT AGREEMENT

     Employment  Agreement,  dated  as of  September  1,  2005,  by and  between
Supertel  Hospitality,  Inc., a Virginia corporation with its principal place of
business  located  at  309  North  5th  Street,  Norfolk,  Nebraska  68701  (the
"Employer") and Paul J. Schulte, an individual (the "Employee").

     WHEREAS,  the Employer and the Employee  desire to enter into an Employment
Agreement on the terms set forth below;

     NOW, THEREFORE, for and in consideration of the premises, covenants,
conditions and obligations thereafter set forth, the parties hereto agree as
follows:

     Section 1.  Employment.  The Employer hereby employs the Employee,  and the
Employee hereby accepts employment, upon the terms and subject to the conditions
hereinafter set forth.

     Section 2. Duties. The Employee will be employed as the President and Chief
Executive  Officer of the Employer,  or such other  positions to which he may be
appointed  by the Board of  Directors.  The  Employee  will  perform  the duties
attendant to his executive  position with the Employer.  The Employee  agrees to
devote his full time and best  efforts to the  performance  of his duties to the
Employer.   The  Employee  shall  be  permitted  to  participate  in  charitable
activities and accept positions on the boards of non-profit entities.

     Section 3. Term.  The initial term of employment of the Employee  hereunder
will  commence  on the date of this  Agreement  (the  "Commencement  Date")  and
continue until December 31, 2005, unless earlier terminated  pursuant to Section
6, and will be  automatically  renewed for successive  additional one year terms
thereafter  (commencing  January 1, 2006),  unless terminated by either party by
written notice to the other, given no fewer than 30 days prior to the expiration
of the then current term.

     Section 4. Compensation and Benefits.  In consideration for the services of
the Employee hereunder, the Employer will compensate the Employee as follows:

(a)  Base Salary. Until the termination of the Employee's  employment hereunder,
     the Employer  will pay the  Employee,  bi-weekly in arrears,  a base salary
     (the "Base Salary") established by the Compensation Committee of Employer's
     Board of  Directors  which Base Salary  will be  reviewed  by the  Employer
     annually. The Employee's Base Salary as of the date of this Agreement shall
     be $250,000 per annum.

(b)  Bonus.  The  Employer  will  consider  the  Employee for cash bonuses on an
     annual  basis.  Any  such  bonus  will be based  on the  recommendation  of
     Employer's Compensation Committee of the board of directors.

(c)  Stock Options.  Pursuant to the Employer's  Stock Option Plan (the "Plan"),
     the Employer  will  consider  the  Employee for option  grants on an annual
     basis.  Any such grants will be made in the sole  discretion  of Employer's
     Compensation Committee of the Board of Directors.

(d)  Vacation.  The Employee will be entitled to four weeks of paid vacation per
     year at the  reasonable  and mutual  convenience  of the  Employer  and the
     Employee.  Unless  otherwise  approved  by the  Board of  Directors  of the
     Employer,  accrued  vacation  not  taken in any  calendar  year will not be
     carried forward or used in any subsequent year.

     Section 5. Expenses.  The Employee,  in connection  with the services to be
performed  by him pursuant to the terms of this  Agreement,  will be required to
make payments for travel and similar  expenses.  The Employer will reimburse the
Employee for all  reasonable  expenses of types  authorized  by the Employer and
incurred  by the  Employee  in the  performance  of his  duties  hereunder.  The
Employee  will comply with such budget  limitations  and approval and  reporting
requirements with respect to expenses as the Employer may establish from time to
time.

     Section 6. Termination.  The Employee's  employment hereunder will commence
on the  Commencement  Date and continue  until the end of the term  specified in
Section 3 hereof and any renewals of such term,  except that the  employment  of
the Employee hereunder will sooner terminate in the following manner:

(a)  Death or Disability.  Upon the death of the Employee during the term of his
     employment hereunder or, at the option of the Employer, in the event of the
     Employee's  disability,  upon 30 days' notice to the Employee. The Employee
     will be deemed disabled if he is unable to perform his duties hereunder for
     a period of sixty  consecutive  days on account of injury or sickness.  Any
     refusal by the Employee to submit to a medical  examination for the purpose
     of   certifying   disability   under  this  Section  6(a)  will  be  deemed
     conclusively to constitute evidence of the Employee's disability.

(b)  For Cause.  For "Cause"  immediately upon written notice by the Employer to
     the Employee.  For purposes of this  Agreement,  a termination  will be for
     Cause if:

     (i)  the Employee  commits an unlawful or criminal act (A) involving  moral
          turpitude or (B) resulting in a financial loss to Employer; or

     (ii) the  Employee  (A)  fails  to obey  written  directions  delivered  to
          Employee  by the  Employer's  Board of  Directors,  or (B)  commits  a
          material breach of any of the covenants,  terms and provisions hereof,
          and in either  case such  failure  or breach  continues  for more than
          three days after  receipt by the  Employee  of written  notice of such
          failure or breach.

(c)  Payments  Upon  Termination.  The  Employee  will  not be  entitled  to any
     compensation  upon  termination,  except for any portion of his Base Salary
     accrued  but  unpaid  from the  last  monthly  payment  date to the date of
     termination and expense  reimbursements under Section 5 hereof for expenses
     incurred in the  performance of his duties  hereunder prior to termination,
     if (i) such termination occurs as a result of an event set forth in Section
     6(a)  or  Section  6(b),  (ii)  such  termination  occurs  as a  result  of
     Employee's voluntary  termination of his employment with Employer, or (iii)
     such termination  results from Employee's  retirement upon reaching age 65.
     If  Employee's  termination  results from the  involuntary  termination  of
     Employee by Employer  without cause (as defined in Section 6(b)),  Employer
     shall pay Employee,  for twelve months,  an amount equal to Employee's Base
     Salary at the time of termination,  which amount shall be paid at the times
     and in the  amounts  Employee  would  have been paid  Base  Salary  had the
     employment not been terminated.  Employee accepts the payments as specified
     herein as full  satisfaction  of all  amounts  owed to Employee by Employer
     pursuant to this Agreement in the event of Employee's termination.

     Section  7.   Confidential   Information.   The  Employee   recognizes  and
acknowledges  that certain assets of the Employer and its affiliates,  including
without  limitation  information  regarding  methods of  operation,  proprietary
computer programs,  sales, products,  profits,  costs, markets and key personnel
(hereinafter called "Confidential Information") are valuable, special and unique
assets of the Employer and its  affiliates.  The  Employee  will not,  during or
after his term of employment,  disclose any of the  Confidential  Information to
any person, firm, corporation,  association,  or any other entity for any reason
or  purpose  whatsoever,  directly  or  indirectly,  except  as may be  required
pursuant  to his  employment  hereunder,  unless  and  until  such  Confidential
Information becomes publicly available other than as a consequence of the breach
of the Employee of his confidentiality  obligations  hereunder.  In the event of
the termination of his employment,  whether voluntary or involuntary and whether
by the Employer or the  Employee,  the Employee will deliver to the Employer all
documents and data pertaining to the Confidential  Information and will not take
with him any documents or data or any kind or any  reproductions (in whole or in
part) of any items relating to the Confidential Information.

     Section 8. Noncompetition.  During the term hereof and until one year after
termination of the Employee's  employment  hereunder,  the Employee will not (i)
engage  directly or  indirectly,  alone or as a shareholder,  partner,  officer,
director,  employee or consultant  of any other  business  organization,  in any
business  activities  which  (A)  relate  to the  economy  motel  business  (the
"Designated  Industry")  and (B) were either  conducted by the Employer prior to
the  Employee's  termination  or proposed to be conducted by the Employer at the
time of such  termination,  (ii) divert to any competitor of the Employer in the
Designated Industry any business  opportunity of the Employee,  or (iii) solicit
or encourage any officer,  employee,  or consultant of the Employer to leave its
employ  for  employment  by or  with  any  competitor  of  the  Employer  in the
Designated Industry.  The Employee's  noncompetition  obligations hereunder will
not preclude  the  Employee  from owning less than 5% of the common stock of any
publicly traded  corporation  conducting  business  activities in the Designated
Industry.  The  Employee  will  continue to be bound by the  provisions  of this
Section 8 until their  expiration  and will not be entitled to any  compensation
from the Employer with respect  thereto.  If at any time the  provisions of this
Section 8 will be determined to be invalid or unenforceable,  by reason of being
vague or unreasonably as to area, duration or scope of activity,  this Section 8
will be considered  divisible and will become and be immediately amended to only
such area, duration and scope of activity as will be determined to be reasonable
and enforceable by the court or other body having  jurisdiction over the matter;
and the  Employee  agrees  that this  Section 8 as so amended  will be valid and
binding as though any invalid or  unenforceable  provision had not been included
herein.

     Section 9. General.

(a)  Notices. All notices and other communications  hereunder will be in writing
     or by written telecommunication, and will be deemed to have been duly given
     if delivered  personally  or if mailed by certified  mail,  return  receipt
     requested  or by written  telecommunication,  to the  relevant  address set
     forth below,  or to such other  address as the  recipient of such notice of
     communication  will have  specified to the other party hereto in accordance
     with this Section 9:

     If to the Employer, to:

                           Supertel Hospitality, Inc.
                           309 North 5th Street
                           Norfolk, NE  68701

<PAGE>

     If to the Employee, to:

                           Paul J. Schulte
                           904 Lovely Lane
                           Norfolk, NE 68701

(b)  Equitable Remedies. Each of the parties hereto acknowledges and agrees that
     upon any breach by the Employee of his  obligations  under  Section 7 and 8
     hereof,  the Employer will have no adequate  remedy at law, and accordingly
     will be entitled to specific  performance and other appropriate  injunctive
     and equitable relief.

(c)  Severability.  If any  provision of this  Agreement is or becomes  invalid,
     illegal  or  unenforceable  in any  respect  under any law,  the  validity,
     legality and enforceability of the remaining  provisions hereof will not in
     any way be affected or impaired.

(d)  Waivers.  No delay or omission by either  party  hereto in  exercising  any
     right,  power or  privilege  hereunder  will impair  such  right,  power or
     privilege, nor will any single or partial exercise of any such right, power
     or privilege  preclude any further  exercise thereof or the exercise of any
     other right, power or privilege.

(f)  Assigns.  This  Agreement  will be binding upon and inure to the benefit of
     the heirs and successors of each of the parties hereto.

(g)  Entire Agreement.  This Agreement contains the entire  understanding of the
     parties, supersedes all prior agreements and understandings relating to the
     subject  matter  hereof  and  will  not  be  amended  except  by a  written
     instrument signed by each of the parties hereto.

(h)  Governing Law. This Agreement and the performance  hereof will be construed
     and governed in accordance with the laws of the State of Nebraska.

     IN WITNESS WHEREOF,  and intending to be legally bound hereby,  the parties
hereto have caused this  Agreement  to be duly  executed as of the date and year
first above written.

                                            Supertel Hospitality, Inc.

    /s/ Paul J. Schulte                         /s/  Loren Steele
______________________________              By:____________________________
PAUL J. SCHULTE                                LOREN STEELE, Chairman,
                                               Compensation CommitteeEMPLOYMENT AGREEMENT

     Employment  Agreement,  dated  as of  September  1,  2005,  by and  between
Supertel  Hospitality,  Inc., a Virginia corporation with its principal place of
business  located  at  309  North  5th  Street,  Norfolk,  Nebraska  68701  (the
"Employer") and Don Heimes, an individual (the "Employee").

     WHEREAS,  the Employer and the Employee  desire to enter into an Employment
Agreement on the terms set forth below;

     NOW,  THEREFORE,  for  and in  consideration  of the  premises,  covenants,
conditions and  obligations  thereafter  set forth,  the parties hereto agree as
follows:

     Section 1.  Employment.  The Employer hereby employs the Employee,  and the
Employee hereby accepts employment, upon the terms and subject to the conditions
hereinafter set forth.

     Section 2.  Duties.  The Employee  will be employed as the Chief  Financial
Officer of the Employer, or such other positions to which he may be appointed by
the Board of Directors.  The Employee  will perform the duties  attendant to his
executive  position  with the Employer.  The Employee  agrees to devote his full
time and best  efforts to the  performance  of his duties to the  Employer.  The
Employee shall be permitted to  participate in charitable  activities and accept
positions on the boards of non-profit entities.

     Section 3. Term.  The initial term of employment of the Employee  hereunder
will  commence  on the date of this  Agreement  (the  "Commencement  Date")  and
continue until December 31, 2005, unless earlier terminated  pursuant to Section
6, and will be  automatically  renewed for successive  additional one year terms
thereafter  (commencing  January 1, 2006),  unless terminated by either party by
written notice to the other, given no fewer than 30 days prior to the expiration
of the then current term.

     Section 4. Compensation and Benefits.  In consideration for the services of
the Employee hereunder, the Employer will compensate the Employee as follows:

(a)  Base Salary. Until the termination of the Employee's  employment hereunder,
     the Employer  will pay the  Employee,  bi-weekly in arrears,  a base salary
     (the "Base Salary") established by the Compensation Committee of Employer's
     Board of  Directors  which Base Salary  will be  reviewed  by the  Employer
     annually. The Employee's Base Salary as of the date of this Agreement shall
     be $150,000 per annum.

(b)  Bonus.  The  Employer  will  consider  the  Employee for cash bonuses on an
     annual  basis.  Any  such  bonus  will be based  on the  recommendation  of
     Employer's Compensation Committee of the board of directors.

(c)  Stock Options.  Pursuant to the Employer's  Stock Option Plan (the "Plan"),
     the Employer  will  consider  the  Employee for option  grants on an annual
     basis.  Any such grants will be made in the sole  discretion  of Employer's
     Compensation Committee of the Board of Directors.

(d)  Vacation.  The Employee will be entitled to four weeks of paid vacation per
     year at the  reasonable  and mutual  convenience  of the  Employer  and the
     Employee.  Unless  otherwise  approved  by the  Board of  Directors  of the
     Employer,  accrued  vacation  not  taken in any  calendar  year will not be
     carried forward or used in any subsequent year.

     Section 5. Expenses.  The Employee,  in connection  with the services to be
performed  by him pursuant to the terms of this  Agreement,  will be required to
make payments for travel and similar  expenses.  The Employer will reimburse the
Employee for all  reasonable  expenses of types  authorized  by the Employer and
incurred  by the  Employee  in the  performance  of his  duties  hereunder.  The
Employee  will comply with such budget  limitations  and approval and  reporting
requirements with respect to expenses as the Employer may establish from time to
time.

     Section 6. Termination.  The Employee's  employment hereunder will commence
on the  Commencement  Date and continue  until the end of the term  specified in
Section 3 hereof and any renewals of such term,  except that the  employment  of
the Employee hereunder will sooner terminate in the following manner:

(a)  Death or Disability.  Upon the death of the Employee during the term of his
     employment hereunder or, at the option of the Employer, in the event of the
     Employee's  disability,  upon 30 days' notice to the Employee. The Employee
     will be deemed disabled if he is unable to perform his duties hereunder for
     a period of sixty  consecutive  days on account of injury or sickness.  Any
     refusal by the Employee to submit to a medical  examination for the purpose
     of   certifying   disability   under  this  Section  6(a)  will  be  deemed
     conclusively to constitute evidence of the Employee's disability.

(b)  For Cause.  For "Cause"  immediately upon written notice by the Employer to
     the Employee.  For purposes of this  Agreement,  a termination  will be for
     Cause if:

     (i)  the Employee  commits an unlawful or criminal act (A) involving  moral
          turpitude or (B) resulting in a financial loss to Employer; or

     (ii) the  Employee  (A)  fails  to obey  written  directions  delivered  to
          Employee  by the  Employer's  Board of  Directors,  or (B)  commits  a
          material breach of any of the covenants,  terms and provisions hereof,
          and in either  case such  failure  or breach  continues  for more than
          three days after  receipt by the  Employee  of written  notice of such
          failure or breach.

(c)  Payments  Upon  Termination.  The  Employee  will  not be  entitled  to any
     compensation  upon  termination,  except for any portion of his Base Salary
     accrued  but  unpaid  from the  last  monthly  payment  date to the date of
     termination and expense  reimbursements under Section 5 hereof for expenses
     incurred in the  performance of his duties  hereunder prior to termination,
     if (i) such termination occurs as a result of an event set forth in Section
     6(a)  or  Section  6(b),  (ii)  such  termination  occurs  as a  result  of
     Employee's voluntary  termination of his employment with Employer, or (iii)
     such termination  results from Employee's  retirement upon reaching age 65.
     If  Employee's  termination  results from the  involuntary  termination  of
     Employee by Employer  without cause (as defined in Section 6(b)),  Employer
     shall pay Employee,  for twelve months,  an amount equal to Employee's Base
     Salary at the time of termination,  which amount shall be paid at the times
     and in the  amounts  Employee  would  have been paid  Base  Salary  had the
     employment not been terminated.  Employee accepts the payments as specified
     herein as full  satisfaction  of all  amounts  owed to Employee by Employer
     pursuant to this Agreement in the event of Employee's termination.

     Section  7.   Confidential   Information.   The  Employee   recognizes  and
acknowledges  that certain assets of the Employer and its affiliates,  including
without  limitation  information  regarding  methods of  operation,  proprietary
computer programs,  sales, products,  profits,  costs, markets and key personnel
(hereinafter called "Confidential Information") are valuable, special and unique
assets of the Employer and its  affiliates.  The  Employee  will not,  during or
after his term of employment,  disclose any of the  Confidential  Information to
any person, firm, corporation,  association,  or any other entity for any reason
or  purpose  whatsoever,  directly  or  indirectly,  except  as may be  required
pursuant  to his  employment  hereunder,  unless  and  until  such  Confidential
Information becomes publicly available other than as a consequence of the breach
of the Employee of his confidentiality  obligations  hereunder.  In the event of
the termination of his employment,  whether voluntary or involuntary and whether
by the Employer or the  Employee,  the Employee will deliver to the Employer all
documents and data pertaining to the Confidential  Information and will not take
with him any documents or data or any kind or any  reproductions (in whole or in
part) of any items relating to the Confidential Information.

     Section 8. Noncompetition.  During the term hereof and until one year after
termination of the Employee's  employment  hereunder,  the Employee will not (i)
engage  directly or  indirectly,  alone or as a shareholder,  partner,  officer,
director,  employee or consultant  of any other  business  organization,  in any
business  activities  which  (A)  relate  to the  economy  motel  business  (the
"Designated  Industry")  and (B) were either  conducted by the Employer prior to
the  Employee's  termination  or proposed to be conducted by the Employer at the
time of such  termination,  (ii) divert to any competitor of the Employer in the
Designated Industry any business  opportunity of the Employee,  or (iii) solicit
or encourage any officer,  employee,  or consultant of the Employer to leave its
employ  for  employment  by or  with  any  competitor  of  the  Employer  in the
Designated Industry.  The Employee's  noncompetition  obligations hereunder will
not preclude  the  Employee  from owning less than 5% of the common stock of any
publicly traded  corporation  conducting  business  activities in the Designated
Industry.  The  Employee  will  continue to be bound by the  provisions  of this
Section 8 until their  expiration  and will not be entitled to any  compensation
from the Employer with respect  thereto.  If at any time the  provisions of this
Section 8 will be determined to be invalid or unenforceable,  by reason of being
vague or unreasonably as to area, duration or scope of activity,  this Section 8
will be considered  divisible and will become and be immediately amended to only
such area, duration and scope of activity as will be determined to be reasonable
and enforceable by the court or other body having  jurisdiction over the matter;
and the  Employee  agrees  that this  Section 8 as so amended  will be valid and
binding as though any invalid or  unenforceable  provision had not been included
herein.

     Section 9. General.

(a)  Notices. All notices and other communications  hereunder will be in writing
     or by written telecommunication, and will be deemed to have been duly given
     if delivered  personally  or if mailed by certified  mail,  return  receipt
     requested  or by written  telecommunication,  to the  relevant  address set
     forth below,  or to such other  address as the  recipient of such notice of
     communication  will have  specified to the other party hereto in accordance
     with this Section 9:

     If to the Employer, to:

                           Supertel Hospitality, Inc.
                           309 North 5th Street
                           Norfolk, NE  68701

<PAGE>

     If to the Employee, to:

                           Don Heimes
                           2472 33rd Avenue
                           P. O. Box 484
                           Columbus, NE  68602

(b)  Equitable Remedies. Each of the parties hereto acknowledges and agrees that
     upon any breach by the Employee of his  obligations  under  Section 7 and 8
     hereof,  the Employer will have no adequate  remedy at law, and accordingly
     will be entitled to specific  performance and other appropriate  injunctive
     and equitable relief.

(c)  Severability.  If any  provision of this  Agreement is or becomes  invalid,
     illegal  or  unenforceable  in any  respect  under any law,  the  validity,
     legality and enforceability of the remaining  provisions hereof will not in
     any way be affected or impaired.

(d)  Waivers.  No delay or omission by either  party  hereto in  exercising  any
     right,  power or  privilege  hereunder  will impair  such  right,  power or
     privilege, nor will any single or partial exercise of any such right, power
     or privilege  preclude any further  exercise thereof or the exercise of any
     other right, power or privilege.

(f)  Assigns.  This  Agreement  will be binding upon and inure to the benefit of
     the heirs and successors of each of the parties hereto.

(g)  Entire Agreement.  This Agreement contains the entire  understanding of the
     parties, supersedes all prior agreements and understandings relating to the
     subject  matter  hereof  and  will  not  be  amended  except  by a  written
     instrument signed by each of the parties hereto.

(h)  Governing Law. This Agreement and the performance  hereof will be construed
     and governed in accordance with the laws of the State of Nebraska.

     IN WITNESS WHEREOF,  and intending to be legally bound hereby,  the parties
hereto have caused this  Agreement  to be duly  executed as of the date and year
first above written.

                                        Supertel Hospitality, Inc.

   /s/ Don Heimes                               /s/ Paul J. Schulte
______________________________          By:______________________________
DON HEIMES                                 Paul J. Schulte, President and Chief
                                                  Executive Officer

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