Document:

Guaranty of Recourse Obligations of Borrower

 Exhibit 10.2 
 MSMCH Loan No. 12-38868 
 GUARANTY OF RECOURSE OBLIGATIONS OF BORROWER

 FOR VALUE RECEIVED, and to induce MORGAN STANLEY MORTGAGE CAPITAL HOLDINGS LLC, a New York limited liability company, having an
address at 1585 Broadway, New York, New York 10036 (“Lender”), to lend to SOLOMONS BEACON INN LIMITED PARTNERSHIP, a Maryland limited partnership, having its principal place of business at 1800 W. Pasewalk Avenue, Suite 200,
Norfolk, Nebraska 68701 (“Borrower”), the principal sum of THIRTY MILLION SIX HUNDRED TWENTY-TWO THOUSAND DOLLARS ($30,622,000.00) (the “Loan”), evidenced by that certain Promissory Note, dated as of the date
hereof, from Borrower to Lender (as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time, the “Note”) and that certain Loan Agreement, dated as of the date hereof, between Borrower, TRS
Subsidiary, LLC, a Delaware limited liability company, and Lender (as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time, the “Loan Agreement”) and secured by the Security Instrument
(as defined in the Loan Agreement) (together with and by other documents executed in connection therewith, the “Loan Documents”), the undersigned, SUPERTEL HOSPITALITY, INC., a Virginia corporation, having an address at 1800
W. Pasewalk Avenue, Suite 200, Norfolk, Nebraska 68701 (hereinafter referred to as “Guarantor”), as of this 2nd day of November, 2012, hereby absolutely and unconditionally guarantees to Lender the prompt and unconditional payment
of the Guaranteed Recourse Obligations of Borrower (hereinafter defined). 
 1. Capitalized terms not defined herein shall have
the meaning set forth in the Loan Agreement. 
 2. It is expressly understood and agreed that this is a continuing guaranty and
that the obligations of Guarantor hereunder are and shall be absolute under any and all circumstances, without regard to the validity, regularity or enforceability of the Note, the Loan Agreement, the Security Instrument, or the other Loan
Documents, a true copy of each of said documents Guarantor hereby acknowledges having received and reviewed. 
 3. The term
“Debt” as used in this Guaranty of Recourse Obligations of Borrower (this “Guaranty”) shall mean the principal sum evidenced by the Note and secured by the Security Instrument, or so much thereof as may be
outstanding from time to time, together with interest thereon at the rate of interest specified in the Note and all other sums other than principal or interest which may or shall become due and payable pursuant to the provisions of the Note, the
Loan Agreement, the Security Instrument or the other Loan Documents. 
 4. The term “Guaranteed Recourse Obligations of
Borrower” as used in this Guaranty shall mean all obligations and liabilities of Borrower for which Borrower shall be personally liable pursuant to Section 11.22 of the Loan Agreement. 

5. Any indebtedness of Borrower to Guarantor now or hereafter existing (including, but not limited to, any rights to subrogation
Guarantor may have as a result of any payment by Guarantor under this Guaranty), together with any interest thereon, shall be, and such 

 
indebtedness is, hereby deferred, postponed and subordinated to the prior payment in full of the Debt. Until payment in full of the Debt (and including interest accruing on the Note after the
commencement of a proceeding by or against Borrower under the Bankruptcy Reform Act of 1978, as amended, 11 U.S.C. Sections 101 et seq., and the regulations adopted and promulgated pursuant thereto (collectively, the “Bankruptcy
Code”) which interest the parties agree shall remain a claim that is prior and superior to any claim of Guarantor notwithstanding any contrary practice, custom or ruling in cases under the Bankruptcy Code generally), Guarantor agrees not to
accept any payment or satisfaction of any kind of indebtedness of Borrower to Guarantor and hereby assigns such indebtedness to Lender, including the right to file proof of claim and to vote thereon in connection with any such proceeding under the
Bankruptcy Code, including the right to vote on any plan of reorganization. Further, if Guarantor shall comprise more than one person, firm or corporation, Guarantor agrees that until such payment in full of the Debt, (a) no one of them shall
accept payment from the others by way of contribution on account of any payment made hereunder by such party to Lender, (b) no one of them will take any action to exercise or enforce any rights to such contribution, and (c) if any of
Guarantor should receive any payment, satisfaction or security for any indebtedness of Borrower to any of Guarantor or for any contribution by the others of Guarantor for payment made hereunder by the recipient to Lender, the same shall be delivered
to Lender in the form received, endorsed or assigned as may be appropriate for application on account of, or as security for, the Debt and until so delivered, shall be held in trust for Lender as security for the Debt. 

6. Guarantor agrees that, with or without notice or demand, Guarantor will reimburse Lender, to the extent that such reimbursement is not
made by Borrower, for all costs and expenses (including reasonable counsel fees and any fees of a special servicer) incurred by Lender in connection with the collection of the Guaranteed Recourse Obligations of Borrower or any portion thereof or
with the enforcement of this Guaranty. 
 7. All moneys available to Lender for application in payment or reduction of the Debt
may be applied by Lender in such manner and in such amounts and at such time or times and in such order and priority as Lender may see fit to the payment or reduction of such portion of the Debt as Lender may elect. 

8. Guarantor waives: (a) any defense based upon any legal disability or other defense of Borrower, any other guarantor or other
person, or by reason of the cessation or limitation of the liability of Borrower from any cause other than full payment of all sums payable under the Loan Agreement or any of the other Loan Documents; (b) any defense based upon any lack of
authority of the officers, directors, partners or agents acting or purporting to act on behalf of Borrower or any principal of Borrower or any defect in the formation of Borrower or any principal of Borrower; (c) any defense based upon the
application by Borrower of the proceeds of the Loan for purposes other than the purposes represented by Borrower to Lender or intended or understood by Lender or Guarantor; (d) all rights and defenses arising out of an election of remedies by
Lender; (e) any defense based upon Lender’s failure to disclose to Guarantor any information concerning Borrower’s financial condition or any other circumstances bearing on Borrower’s ability to pay all sums payable under the
Loan Agreement or any of the other Loan Documents; (f) any defense based upon any statute or rule of law which provides that the obligation of a surety must be neither larger in amount nor in any other respects more burdensome than that of a
principal; (g) any defense based upon Lender’s election, in any 

  
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proceeding instituted under the Bankruptcy Code, of the application of Section 1111(b)(2) of the Bankruptcy Code or any successor statute; (h) any defense based upon any borrowing or
any grant of a security interest under Section 364 of the Bankruptcy Code; (i) presentment, demand, protest and notice of any kind; and (j) the benefit of any statute of limitations affecting the liability of Guarantor hereunder or
the enforcement hereof. Further, Guarantor has been advised of its rights under the General Statutes of North Carolina, Section 26-7, et seq., to require Lender to proceed against the principal obligor(s) to realize upon Lender’s security
and to take (or refrain from taking) other actions in pursuing its rights and remedies, and Guarantor specifically waives all of its rights under said statutory provisions, and under all other statutory provisions, which are or may be in
conflict with Lender under the terms of this Guaranty. Guarantor waives all rights and defenses that Guarantor may have because of an impairment of collateral, extension of time or a suretyship. In addition, Guarantor waives all rights and defenses
that Guarantor may have because Borrower’s debt is secured by real property. This means, among other things: (1) Lender may collect from Guarantor without first foreclosing on any real or personal property collateral pledged by Borrower;
and (2) if Lender forecloses on any real property collateral pledged by Borrower, then (i) the amount of the debt may be reduced only by the price for which that collateral is sold at the foreclosure sale, even if the collateral is worth
more than the sale price, and (ii) Lender may collect from Guarantor even if Lender, by foreclosing on the real property collateral, has destroyed any right Guarantor may have to collect from Borrower. The foregoing sentence is an unconditional
and irrevocable waiver of any rights and defenses Guarantor may have because Borrower’s debt is secured by real property. Finally, Guarantor agrees that the payment of all sums payable under the Loan Agreement or any of the other Loan Documents
or any part thereof or other act which tolls any statute of limitations applicable to the Note or the other Loan Documents shall similarly operate to toll the statute of limitations applicable to Guarantor’s liability hereunder. 

9. Guarantor further agrees that the validity of this Guaranty and the obligations of Guarantor hereunder shall in no way be terminated,
affected or impaired by reason of any of the following: (a) the assertion by Lender of any rights or remedies which it may have under or with respect to either the Note, the Loan Agreement, the Security Instrument, or the other Loan Documents,
against any person obligated thereunder or against the owner of the Property (as defined in the Security Instrument), or (b) any failure to file or record any of such instruments or to take or perfect any security intended to be provided
thereby, or (c) the release or exchange of any property covered by the Security Instrument or other collateral for the Loan, or (d) Lender’s failure to exercise, or delay in exercising, any such right or remedy or any right or remedy
Lender may have hereunder or in respect to this Guaranty, or (e) the commencement of a case under the Bankruptcy Code by or against any person obligated under the Note, the Security Instrument or the other Loan Documents, or the death of any
Guarantor, or (f) any partial or total transfer or pledge of the interests in Borrower, or in any direct or indirect owner of Borrower, and/or the reconstitution of Borrower as a result of such transfer or pledge, regardless of whether any of
the foregoing is permitted under the Loan Documents, or (g) any payment made on the Debt or any other indebtedness arising under the Note, the Loan Agreement, the Security Instrument or the other Loan Documents, whether made by Borrower or
Guarantor or any other person, which is required to be refunded pursuant to any bankruptcy or insolvency law; it being understood that no payment so refunded shall be considered as a payment of any portion of the Debt, nor shall it have the effect
of reducing the liability of Guarantor hereunder. It is further understood, that if Borrower shall have taken advantage of, or be subject to the protection of, any 

  
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provision in the Bankruptcy Code, the effect of which is to prevent or delay Lender from taking any remedial action against Borrower, including the exercise of any option Lender has to declare
the Debt due and payable on the happening of any default or event by which under the terms of the Note, the Loan Agreement, the Security Instrument or the other Loan Documents, the Debt shall become due and payable, Lender may, as against Guarantor,
nevertheless, declare the Debt due and payable and enforce any or all of its rights and remedies against Guarantor provided for herein. 
 10. Guarantor warrants and acknowledges that: (a) Lender would not make the Loan but for this Guaranty; (b) there are no conditions precedent to the effectiveness of this Guaranty and this
Guaranty shall be in full force and effect and binding on Guarantor regardless of whether Lender obtains other collateral or any guaranties from others or takes any other action contemplated by Guarantor; (c) Guarantor has established adequate
means of obtaining from sources other than Lender, on a continuing basis, financial and other information pertaining to Borrower’s financial condition, the Property and Borrower’s activities relating thereto, and the status of
Borrower’s performance of obligations under the Loan Documents, and Guarantor agrees to keep adequately informed from such means of any facts, events or circumstances which might in any way affect Guarantor’s risks hereunder and Lender has
not made any representation to Guarantor as to any such matters; (d) the most recent financial statements of Guarantor previously delivered to Lender are true, complete and correct in all material respects, have been prepared in accordance with
GAAP or in accordance with other methods acceptable to Lender in its reasonable discretion (consistently applied) and fairly present the financial condition of Guarantor in all material respects as of the respective dates thereof, and no material
adverse change has occurred in the financial condition of Guarantor since the respective dates thereof; (e) Guarantor has not and will not, without the prior written consent of Lender, sell, lease, assign, encumber, hypothecate, transfer or
otherwise dispose of all or substantially all of Guarantor’s assets, or substantially all of its interest therein, other than in the ordinary course of Guarantor’s business; and (f) Guarantor has not and will not cause or consent to
any action or failure to act that would result in Borrower failing to be at all times a “single purpose entity” as described in Section 3.1.24 of the Loan Agreement. 

11. So long as the Loan or any other obligation guaranteed hereby remains outstanding (other than, following the termination of the Loan
Agreement and all other Loan Documents, contingent indemnification obligations as to which no claim has been made), Guarantor shall provide to Lender (i) within one hundred twenty (120) days after the end of each fiscal year and sixty
(60) days after each fiscal quarter (other than the fourth fiscal quarter), financial statements of Guarantor covering the corresponding period then ended including a balance sheet, income and expenses, cash flow and statement of change in
financial position, audited by a “Big Four” accounting firm or other independent certified public accountant reasonably acceptable to Lender, together with a certificate of Guarantor that the Minimum Financial Criteria (defined below)
continues to be satisfied as set forth in Section 23(j) hereof (including Guarantor’s calculation of Guarantor’s Net Worth and Liquidity), each of such statements and calculations delivered pursuant to this clause
(i) shall be certified as being true and current in all material respects by an officer of Guarantor, (ii) within ten (10) days of Lender’s written request, a complete copy of Guarantor’s federal and (to the extent
applicable) state income tax returns for the immediately preceding tax year, and (iii) such other information reasonably requested by Lender and reasonably available to Guarantor. Guarantor agrees that all

  
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financial statements to be delivered to Lender pursuant to this Section 11 shall: (i) be complete and correct in all material respects; (ii) present fairly the financial condition
of Guarantor in all material respects, if applicable; (iii) disclose all liabilities in all material respects that are required to be reflected or reserved against; and (iv) be prepared (A) in hardcopy and electronic formats and
(B) in accordance with GAAP or in accordance with other methods acceptable to Lender in its reasonable discretion (consistently applied). Guarantor shall be deemed to warrant and represent that, as of the date of delivery of any such financial
statement, there has been no material adverse change in financial condition, nor have any assets or properties owned by Guarantor been sold, transferred, assigned, mortgaged, pledged or encumbered (other than in the ordinary course of business and
in accordance with the Loan Documents) since the date of such financial statement except as disclosed by Guarantor in a writing delivered to Lender. Guarantor agrees that all financial statements shall not contain any misrepresentation or omission
of a material fact which would make such financial statements inaccurate, incomplete or otherwise misleading in any material respect. 
 Furthermore, each legal entity and individual obligated on this Guaranty hereby authorizes Lender to order and obtain, from a credit reporting agency of Lender’s choice, a third party credit report
on such legal entity and individual. 
 12. Guarantor further covenants that this Guaranty shall remain and continue in full
force and effect as to any modification, extension or renewal of the Note, the Loan Agreement, the Security Instrument, or any of the other Loan Documents, that Lender shall not be under a duty to protect, secure or insure any security or lien
provided by the Security Instrument or other such collateral, and that other indulgences or forbearance may be granted under any or all of such documents, all of which may be made, done or suffered without notice to, or further consent of,
Guarantor. 
 13. This is a guaranty of payment and not of collection and upon the Guaranteed Recourse Obligations of Borrower
being incurred by Lender or upon any Event of Default (as defined in the Loan Agreement) of Borrower under the Note, the Loan Agreement, the Security Instrument or the other Loan Documents, Lender may, at its option, proceed directly and at once,
without notice, against Guarantor to collect and recover the full amount of the liability hereunder or any portion thereof, without proceeding against Borrower or any other person, or foreclosing upon, selling, or otherwise disposing of or
collecting or applying against any of the mortgaged property or other collateral for the Loan. Guarantor hereby waives the pleading of any statute of limitations as a defense to the obligation hereunder. 

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

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

  
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 16. It is the intent of Guarantor and Lender that the obligations and liabilities of
Guarantor hereunder are absolute and unconditional under any and all circumstances and that until the Guaranteed Recourse Obligations of Borrower are fully and finally paid and performed, and not subject to refund or disgorgement, the obligations
and liabilities of Guarantor hereunder shall not be discharged or released, in whole or in part, by any act or occurrence that might, but for the provisions of this Guaranty, be deemed a legal or equitable discharge or release of a Guarantor. This
Guaranty shall be deemed to be continuing in nature and shall remain in full force and effect and shall survive the exercise of any remedy by Lender under the Security Instrument or any of the other Loan Documents, including, without limitation, any
foreclosure or deed in lieu of foreclosure. 
 17. All understandings, representations and agreements heretofore had with
respect to this Guaranty are merged into this Guaranty which alone fully and completely expresses the agreement of Guarantor and Lender. 
 18. This Guaranty may be executed in one or more counterparts by some or all of the parties hereto, each of which counterparts shall be an original and all of which together shall constitute a single
agreement of Guaranty. The failure of any party hereto to execute this Guaranty, or any counterpart hereof, shall not relieve the other signatories from their obligations hereunder. 

19. This Guaranty may not be modified, amended, waived, extended, changed, discharged or terminated orally or by any act or failure to
act on the part of Lender or Borrower, but only by an agreement in writing signed by the party against whom enforcement of any modification, amendment, waiver, extension, change, discharge or termination is sought. 

20. In the event that pursuant to any insolvency, bankruptcy, reorganization, receivership or other debtor relief law or any judgment,
order or decision thereunder, Lender must rescind or restore any payment or any part thereof received by Lender in satisfaction of the Guaranteed Recourse Obligations of Borrower, as set forth herein, any prior release or discharge from the terms of
this Guaranty given to Guarantor by Lender shall be without effect and this Guaranty shall remain in full force and effect. It is the intention of Borrower and Guarantor that Guarantor’s obligations hereunder shall not be discharged except by
Guarantor’s performance of such obligations and then only to the extent of such performance. 
 21. This Guaranty shall be
deemed to be a contract entered into pursuant to the laws of the State of New York and shall in all respects be governed, construed, applied and enforced in accordance with applicable federal law and the laws of the State of New York, without
reference or giving effect to any choice of law doctrine. 
 22. As a further inducement to Lender to make the Loan and in
consideration thereof, Guarantor further covenants and agrees (a) that in any action or proceeding brought by Lender against Guarantor on this Guaranty, Guarantor shall and does hereby waive trial by jury, (b) Guarantor will maintain a
place of business or an agent for service of process in New York and 

  
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give prompt notice to Lender of the address of such place of business and of the name and address of any new agent appointed by it, as appropriate, (c) the failure of Guarantor’s agent
for service of process to give it notice of any service of process will not impair or affect the validity of such service or of any judgment based thereon, (d) if, despite the foregoing, there is for any reason no agent for service of process
of Guarantor available to be served, and if Guarantor at that time has no place of business in the State of New York then Guarantor irrevocably consents to service of process by registered or certified mail, postage prepaid, to it at its address
given in or pursuant to the first paragraph hereof, Guarantor hereby waiving personal service thereof, (e) that within thirty (30) days after such mailing, Guarantor so served shall appear or answer to any summons and complaint or other
process and should Guarantor so served fail to appear or answer within said thirty (30) day period, said Guarantor shall be deemed in default and judgment may be entered by Lender against the said party for the amount as demanded in any summons
and complaint or other process so served, (f) Guarantor initially and irrevocably designates CT Corporation System, with offices on the date hereof at 111 Eighth Avenue, New York, New York 10011, to receive for and on behalf of Guarantor
service of process in the State of New York with respect to this Guaranty, (g) with respect to any claim or action arising hereunder, Guarantor (i) irrevocably submits to the nonexclusive jurisdiction of the courts of the State of New York
and the United States District Court located in New York County, and appellate courts from any thereof, and (ii) irrevocably waives any objection which it may have at any time to the laying on venue of any suit, action or proceeding arising out
of or relating to this Guaranty brought in any such court, irrevocably waives any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum, and (h) nothing in this Guaranty will be
deemed to preclude Lender from bringing an action or proceeding with respect hereto in any other jurisdiction. 
 23. Guarantor
(and its representative, executing below, if any) hereby warrants, represents and covenants to Lender that: 
 (a) Guarantor is
duly organized and existing and in good standing under the laws of the state in which such entity is organized. Guarantor is currently qualified or licensed (as applicable) and shall remain qualified or licensed to do business in each jurisdiction
in which the nature of its business requires it to be so qualified or licensed. 
 (b) The execution and delivery of the
Guaranty has been duly authorized and the Loan Documents to which Guarantor is a party constitute valid and binding obligations of Guarantor or the party which executed the same, enforceable in accordance with their respective terms, except as such
enforcement may be limited by bankruptcy, insolvency, moratorium or other laws affecting the enforcement of creditors’ rights, or by the application of rules of equity. 
 (c) The execution, delivery and performance by Guarantor of each of the Loan Documents to which Guarantor is a party do not violate any provision of any law or regulation, or result in any breach or
default under any contract, obligation, indenture or other instrument to which Guarantor is a party or by which Guarantor is bound. 
 (d) There are no pending or, to Guarantor’s knowledge, threatened actions, claims, investigations, suits or proceedings before any governmental authority, court or administrative agency which would
materially and adversely affect the financial condition or operations of Guarantor, Borrower, and/or the Property. 

  
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 (e) There are no pending assessments or adjustments of Guarantor’s income tax payable
with respect to any year which could reasonably be expected to cause a Material Adverse Effect (as defined in the Loan Agreement). 
 (f) None of the transactions contemplated by the Loan Documents will be or have been made with an actual intent to hinder, delay or defraud any present or future creditors of Borrower or Guarantor, and
Borrower and Guarantor, on the date hereof, will have received fair and reasonably equivalent value in good faith for the continued grant of the liens or security interests effected by the Loan Documents. As of the date hereof, Borrower and
Guarantor are: (i) solvent and will not be rendered insolvent by the transactions contemplated by the Loan Documents, and (ii) able to pay their respective debts as they become due. 

(g) As of the date hereof, the representations and warranties set forth in Sections 3.1.8, 3.1.25, 3.1.26, 3.1.28, 3.1.31, 3.1.33,
3.1.41, and 3.1.42 of the Loan Agreement are true and correct with respect to Guarantor, it being understood that whenever the term “Borrower” is used in each of the foregoing sections it shall be deemed to mean “Guarantor.”

 (h) Guarantor shall promptly notify Lender in writing of any litigation pending or threatened against Guarantor claiming
damages in excess of Two Hundred Thousand and No/100 Dollars ($200,000.00) and of all pending or threatened litigation against Guarantor if the aggregate damage claims against Guarantor exceed Four Hundred Thousand and No/100 Dollars ($400,000.00).

 (i) Guarantor shall keep and maintain or will cause to be kept and maintained proper and accurate books and records
reflecting the financial affairs of Guarantor. Lender shall have the right from time to time during normal business hours upon reasonable notice to Guarantor to examine such books and records at the office of Guarantor or other Person maintaining
such books and records and to make such copies or extracts thereof as Lender shall desire. 
 (j) So long as the Loan and any of
the obligations set forth in the Loan Documents remain outstanding, Guarantor shall maintain a minimum Net Worth (as defined herein) of not less than fifty percent (50%) of the Net Worth of Guarantor as of the date hereof (the “Minimum
Financial Criteria”). 
 As used herein: 
 “Net Worth” shall mean net worth as calculated in accordance with generally accepted accounting principles (or other principles acceptable to Lender). 

24. Guarantor hereby waives impairment of collateral, extension of time and all defenses based on suretyship. 

25. Guarantor hereby agrees that neither Lender’s rights or remedies nor Guarantor’s obligations under the terms of this
Guaranty shall be released, diminished, 

  
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impaired, reduced or affected by any one or more of the following events, actions, facts, or circumstances, and the liability of Guarantor under this Guaranty shall be absolute and unconditional
irrespective of (and Guarantor hereby waives any rights or protections related to) any homestead exemption or any other similar exemption under any applicable Legal Requirements and Guarantor hereby waives the benefit of any such exemption as to the
Guaranteed Recourse Obligations of Borrower which such waiver is hereby expressly made in accordance with Virginia Code Section 34.22 and the benefits of Virginia Code Sections 49-25 and 49-26. 

26. (a) Acknowledgement of Warranty of Attorney. THE FOLLOWING PARAGRAPH SETS FORTH A GRANT OF AUTHORITY FOR ANY ATTORNEY TO
CONFESS JUDGMENT AGAINST GUARANTOR UPON THE OCCURRENCE OF AN EVENT OF DEFAULT. IN GRANTING THIS WARRANT OF ATTORNEY TO CONFESS JUDGMENT AGAINST GUARANTOR, FOLLOWING CONSULTATION WITH (OR DECISION NOT TO CONSULT) SEPARATE COUNSEL FOR GUARANTOR, AND
WITH KNOWLEDGE OF THE LEGAL EFFECT HEREOF, GUARANTOR HEREBY KNOWINGLY, INTENTIONALLY, VOLUNTARILY, INTELLIGENTLY AND UNCONDITIONALLY WAIVES ANY AND ALL RIGHTS IT HAS OR MAY HAVE TO PRIOR NOTICE AND AN OPPORTUNITY FOR HEARING UNDER THE RESPECTIVE
CONSTITUTIONS AND LAWS OF THE UNITED STATES AMERICA, COMMONWEALTH OF PENNSYLVANIA, OR ELSEWHERE INCLUDING, WITHOUT LIMITATION, A HEARING PRIOR TO GARNISHMENT AND ATTACHMENT OF GUARANTOR’S BANK ACCOUNTS AND OTHER ASSETS; PROVIDED, THAT, LENDER
SHALL ONLY PROCEED TO TAKE ACTION WITH RESPECT TO SUCH CONFESSION OF JUDGMENT UPON THE OCCURRENCE OF AN EVENT OF DEFAULT. GUARANTOR ACKNOWLEDGES AND UNDERSTANDS THAT BY ENTERING INTO THIS GUARANTY CONTAINING A CONFESSION OF JUDGMENT CLAUSE THAT
GUARANTOR IS VOLUNTARILY, INTELLIGENTLY AND KNOWINGLY GIVING UP ANY AND ALL RIGHTS, INCLUDING CONSTITUTIONAL RIGHTS, THAT GUARANTOR HAS OR MAY HAVE TO NOTICE AND A HEARING BEFORE JUDGMENT CAN BE ENTERED AGAINST GUARANTOR AND BEFORE GUARANTOR’S
ASSETS, INCLUDING, WITHOUT LIMITATION, ITS BANK ACCOUNTS, MAY BE GARNISHED, LEVIED, EXECUTED UPON AND/OR ATTACHED. GUARANTOR UNDERSTANDS THAT ANY SUCH GARNISHMENT, LEVY, EXECUTION AND/OR ATTACHMENT SHALL RENDER THE PROPERTY GARNISHED, LEVIED,
EXECUTED UPON OR ATTACHED IMMEDIATELY UNAVAILABLE TO GUARANTOR. IT IS SPECIFICALLY ACKNOWLEDGED BY GUARANTOR THAT LENDER HAS RELIED ON THIS WARRANT OF ATTORNEY AND THE RIGHTS WAIVED BY GUARANTOR HEREIN AS A MATERIAL INDUCEMENT TO GRANT ONE OR MORE
ACCOMMODATIONS TO GUARANTOR AND/OR BORROWER. 
 (i)(b) WARRANT OF ATTORNEY TO CONFESS JUDGMENT - Money. GUARANTOR,
HEREBY AUTHORIZES AND EMPOWERS, UPON AN EVENT OF DEFAULT HEREUNDER, AND/OR UNDER THE OTHER LOAN DOCUMENTS, ANY ATTORNEY OF ANY COURT OF RECORD OR THE PROTHONOTARY OR CLERK OF ANY COUNTY IN THE COMMONWEALTH OF PENNSYLVANIA, OR IN ANY JURISDICTION
WHERE PERMITTED BY LAW, OR THE CLERK OF ANY UNITED 

  
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STATES DISTRICT COURT, TO APPEAR FOR GUARANTOR IN ANY AND ALL ACTIONS WHICH MAY BE BROUGHT HEREUNDER, AND/OR UNDER THE OTHER LOAN DOCUMENTS, AND ENTER AND CONFESS JUDGMENT AGAINST GUARANTOR IN
FAVOR OF LENDER OR ITS ASSIGNEE FOR THE ENTIRE AMOUNT OF THE INDEBTEDNESS THEN DUE AND OUTSTANDING UNDER THE TERMS OF THIS GUARANTY AND/OR UNDER THE OTHER LOAN DOCUMENTS, TOGETHER WITH REASONABLE ATTORNEYS’ FEES, ALL WITH OR WITHOUT
DECLARATION, WITHOUT PRIOR NOTICE, WITHOUT STAY OF EXECUTION AND WITH RELEASE OF ALL PROCEDURAL ERRORS AND THE RIGHT TO ISSUE EXECUTIONS FORTHWITH. TO THE EXTENT PERMITTED BY LAW, GUARANTOR WAIVES THE RIGHT OF INQUISITION ON ANY REAL ESTATE LEVIED
ON, VOLUNTARILY CONDEMNS THE SAME, AUTHORIZES THE PROTHONOTARY OR CLERK TO ENTER UPON THE WRIT OF EXECUTION THIS VOLUNTARY CONDEMNATION AND AGREES THAT SUCH REAL ESTATE MAY BE SOLD ON A WRIT OF EXECUTION; AND ALSO WAIVES ANY RELIEF FROM ANY
APPRAISEMENT, STAY OR EXEMPTION LAW OF ANY STATE NOW IN FORCE OR HEREAFTER ENACTED. IF COPIES OF THIS GUARANTY AND/OR THE OTHER LOAN DOCUMENTS VERIFIED BY AFFIDAVIT OF ANY REPRESENTATIVE OF LENDER SHALL HAVE BEEN FILED IN SUCH ACTION, IT SHALL NOT
BE NECESSARY TO FILE THE ORIGINALS THEREOF AS A WARRANT OF ATTORNEY, ANY PRACTICE OR USAGE TO THE CONTRARY NOTWITHSTANDING. THE AUTHORITY HEREIN GRANTED TO CONFESS JUDGMENT SHALL NOT BE EXHAUSTED BY ANY SINGLE EXERCISE THEREOF, BUT SHALL CONTINUE
AND MAY BE EXERCISED FROM TIME TO TIME AS OFTEN AS LENDER SHALL FIND IT NECESSARY AND DESIRABLE AND AT ALL TIMES UNTIL FULL PAYMENT OF ALL AMOUNTS DUE HEREUNDER, AND/OR UNDER THE OTHER LOAN DOCUMENTS. LENDER MAY CONFESS ONE OR MORE JUDGMENTS IN THE
SAME OR DIFFERENT JURISDICTIONS FOR ALL OR ANY PART OF THE INDEBTEDNESS OR OBLIGATIONS ARISING HEREUNDER, AND/OR UNDER THE OTHER LOAN DOCUMENTS, WITHOUT REGARD TO WHETHER JUDGMENT HAS THERETOFORE BEEN CONFESSED ON MORE THAN ONE OCCASION FOR THE SAME
INDEBTEDNESS OR OBLIGATIONS. IN THE EVENT THAT ANY JUDGMENT CONFESSED AGAINST GUARANTOR IS STRICKEN OR OPENED UPON APPLICATION BY OR ON BEHALF OF GUARANTOR FOR ANY REASON, THE BANK IS HEREBY AUTHORIZED AND EMPOWERED TO AGAIN APPEAR FOR AND CONFESS
JUDGMENT AGAINST GUARANTOR FOR ANY PART OR ALL OF THE INDEBTEDNESS DUE AND OWING TO LENDER UNDER THIS GUARANTY AGREEMENT, AND/OR UNDER THE OTHER LOAN DOCUMENTS. 
 (ii) WARRANT OF ATTORNEY TO CONFESS JUDGMENT - General Provisions. IN ANY ACTION OR PROCEEDING DESCRIBED HEREIN OR IN CONNECTION THEREWITH, IF COPIES OF THIS GUARANTY AND/OR THE OTHER LOAN
DOCUMENTS ARE THEREIN VERIFIED BY LENDER OR SOMEONE ACTING FOR LENDER TO BE TRUE AND CORRECT COPIES OF THIS GUARANTY AND/OR THE OTHER LOAN DOCUMENTS (AND SUCH COPIES SHALL BE CONCLUSIVELY PRESUMED TO BE TRUE AND CORRECT BY VIRTUE OF SUCH
VERIFICATION), 

  
 10 

 
THEN IT SHALL NOT BE NECESSARY TO FILE THE ORIGINAL OF THIS GUARANTY AND/OR THE OTHER LOAN DOCUMENTS, ANY STATUTE, RULE OF COURT OF LAW, CUSTOM OR PRACTICE TO THE CONTRARY NOTWITHSTANDING.
GUARANTOR HEREBY RELEASES TO LENDER, ANYONE ACTING FOR LENDER AND ALL ATTORNEYS WHO MAY APPEAR FOR GUARANTOR, ALL ERRORS IN PROCEDURE REGARDING THE ENTRY OF JUDGMENT OR JUDGMENTS BY CONFESSION OR OTHERWISE BY VIRTUE OF THE WARRANTS OF ATTORNEY
CONTAINED HEREIN AND/OR IN THE OTHER LOAN DOCUMENTS, AND ALL LIABILITY THEREFOR. THE RIGHT TO ENTER JUDGMENT OR JUDGMENTS BY CONFESSION OR OTHERWISE BY VIRTUE OF THE WARRANTS OF ATTORNEY CONTAINED HEREIN, AND/OR IN THE OTHER LOAN DOCUMENTS AND TO
ENFORCE ALL OF THE OTHER PROVISIONS OF THOSE DOCUMENTS MAY BE EXERCISED BY ANY ASSIGNEE OF LENDER’S RIGHT, TITLE AND INTEREST IN THIS GUARANTY AND/OR UNDER THE LOAN DOCUMENTS IN SUCH ASSIGNEE’S OWN NAME, ANY STATUTE, RULE OF COURT OR LAW,
CUSTOM OR PRACTICE TO THE CONTRARY NOTWITHSTANDING. 
 [NO FURTHER TEXT ON THIS PAGE] 

  
 11 

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

			
	GUARANTOR:
	
	SUPERTEL HOSPITALITY, INC., a Virginia corporation
		
	By:	 	 /s/ Kelly A. Walters

	Name:	 	Kelly A. Walters
	Title:	 	Chief Executive Officer

  
 12Cash Management Agreement

 Exhibit 10.3 
 MSMCH Loan No. 12-38868 
 CASH MANAGEMENT AGREEMENT 

THIS CASH MANAGEMENT AGREEMENT (this “Agreement”) is made as of November 2, 2012, by and among MORGAN STANLEY
MORTGAGE CAPITAL HOLDINGS LLC, a New York limited liability company (together with its successors and assigns, “Lender”), SOLOMONS BEACON INN LIMITED PARTNERSHIP, a Maryland limited partnership (“Borrower”), TRS
SUBSIDIARY, LLC, a Delaware limited liability company (“Operating Lessee”), HOSPITALITY MANAGEMENT ADVISORS, INC., a Tennessee corporation (“HMA”), KINSETH HOTEL CORPORATION, an Iowa corporation
(“KHC”), and STRANDCO, INC., a North Carolina corporation (“SDC”; HMA, KHC and SDC, individually and/or collectively (as the context may require), “Manager”). 

Recitals 

A. Pursuant to that certain Loan Agreement (as the same may be amended, restated, replaced, supplemented or otherwise modified from time
to time, the “Loan Agreement”) of even date herewith made by and between Borrower, Operating Lessee and Lender, Lender has made a loan (the “Loan”) to Borrower in the principal amount of $30,622,000.00 as evidenced
by that certain note dated the date hereof by Borrower (as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time, the “Note”). 

B. The Loan is secured by, among other things, the Security Instrument (as defined in the Loan Agreement) and an assignment of all Rents
arising with respect to the Property (as defined in the Loan Agreement). The Loan Agreement, the Note, the Security Instrument and any other documents executed in connection with the Loan are, collectively, referred to herein as the “Loan
Documents”. 
 C. Operating Lessee and HMA have entered into that certain hotel management agreement with respect to
the Individual Properties set forth on Schedule I attached hereto, dated as of April 21, 2011, pursuant to which Manager has agreed to manage such Individual Properties. 

D. Operating Lessee and KHC have entered into that certain hotel management agreement with respect to the Individual Properties set forth
on Schedule II attached hereto, dated as of April 21, 2011, pursuant to which Manager has agreed to manage such Individual Properties. 
 E. Operating Lessee and SDC have entered into that certain hotel management agreement with respect to the Individual Properties set forth on Schedule III attached hereto, dated as of April 21,
2011, pursuant to which Manager has agreed to manage such Individual Properties. 
 F. Pursuant to the terms of that certain
Restricted Account Agreement (as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time, the “Restricted Account Agreement”) of even date herewith made by and among Borrower, Lender and
Bank (as defined below), Borrower has established with Bank the Restricted Account (as defined in the Restricted Account Agreement). 

 G. In order to fulfill certain of Borrower’s obligations under the Loan Agreement and
the other Loan Documents, Borrower, Operating Lessee and Manager have agreed that all Rents will be deposited into the Restricted Account as described herein, and, upon the direction of Lender under certain circumstances as described herein, that
such Rents will be disbursed from the Restricted Account to Lender or its Servicer to be applied in accordance with the terms of this Agreement. 
 Agreement 
 NOW, THEREFORE, in consideration of the mutual promises
contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties hereto agree as follows: 

1. Defined Terms. 
 (a) As used herein, the following capitalized terms shall have the respective meanings set forth below: 
 (i) “Accounts” means, collectively, the Deposit Account, the Tax Subaccount, the Insurance Subaccount, the Debt Service Subaccount, the Franchise Subaccount, the FF&E Expenditure
Subaccount and the Cash Management Servicing Fees Subaccount. 
 (ii) “ACH System” means the automated
clearinghouse system. 
 (iii) “Bank” means Wells Fargo Bank, N.A., or any permitted successor to Bank under
the terms of the Restricted Account Agreement. 
 (iv) “Business Day” means any day other than a Saturday,
Sunday or any day on which commercial banks in the State of New York or in the state where the Accounts are located are authorized or required to close. 
 (v) “Cash Management Servicing Fees Subaccount” has the meaning set forth in Section 2(vi). 
 (vi) “Cash Sweep Period” means a period commencing upon the earlier of (i) the occurrence and continuance of an Event of Default, (ii) the occurrence of a DSCR Trigger Event or
(iii) the occurrence of a Supertel Trigger Period, which such Cash Sweep Period shall expire (A) with regard to any Cash Sweep Period commenced in connection with clause (i) above, upon the cure (if applicable) of such Event of
Default (provided that a Cash Sweep Period is not continuing pursuant to clause (ii) or (iii) above), (B) with regard to any Cash Sweep Period commenced in connection with clause (ii) above, upon the date that the Actual Debt
Service Coverage Ratio is equal to or greater than 1.35 to 1.00 for three (3) consecutive calendar months (provided that a Cash Sweep Period is not continuing pursuant to clause (i) or (iii) above) or (C) with regard to any Cash
Sweep Period commenced in connection with clause (iii) above, upon the Supertel Trigger Period ceasing to exist in accordance with the terms hereof (provided that a Cash Sweep Period is not continuing pursuant to clause (i) or
(ii) above). 
 (vii) “Credit Card Bank Payment Direction Letter” has the meaning set forth in
Section 4(c) hereof. 

  
 2 

 (viii) “Credit Card Banks” has the meaning set forth in Section 4(c)
hereof. 
 (ix) “Credit Card Companies” has the meaning set forth in Section 4(c) hereof. 

(x) “Credit Card Company Payment Direction Letter” has the meaning set forth in Section 4(c) hereof. 

(xi) “Debt Service Subaccount” has the meaning set forth in Section 2(v) hereof. 

(xii) “Deposit Account” has the meaning set forth in Section 2 hereof. 

(xiii) “DSCR Trigger Event” means the Actual Debt Service Coverage Ratio being less than 1.25 to 1.00. 

(xiv) “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 maintained with a federal or state-chartered depository institution or trust company which complies with the definition of Eligible Institution or (ii) a segregated trust account or
accounts maintained with a federal or state chartered depository institution or trust company acting in its fiduciary capacity which, in the case of a state chartered depository institution or trust company is subject to regulations substantially
similar to 12 C.F.R. §9.10(b), having in either case a combined capital and surplus of at least $50,000,000 and subject to supervision or examination by federal and state authority. An Eligible Account will not be evidenced by a certificate of
deposit, passbook or other instrument. 
 (xv) “Eligible Institution” shall mean a depository institution or
trust company 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 Standard & Poor’s Ratings Group (“S&P”), P-1 by
Moody’s Investors Service, Inc. (“Moody’s”), and F-1+ by Fitch, Inc. (“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 “A” by Fitch and S&P and “A2” by Moody’s. 

(xvi) “Event of Default” has the meaning set forth in Section 9 hereof. 

(xvii) “Excess Cash Flow” has the meaning set forth in Section 5(b)(ix). 

(xviii) “Excess Cash Subaccount” has the meaning set forth in Section 2(vii). 

(xix) “Franchise Subaccount” has the meaning set forth in Section 2(iv) hereof. 

(xx) “FF&E Expenditure Subaccount” has the meaning set forth in Section 2(iii) hereof. 

  
 3 

 (xxi) “Insurance Subaccount” has the meaning set forth in
Section 2(ii) hereof. 
 (xxii) “Local Account” means each deposit account set forth on Schedule
IV attached hereto. 
 (xxiii) “Local Bank” means the depository institution where each Local Account is
held as set forth on Schedule IV attached hereto. Borrower is not permitted to maintain any Local Accounts at any Local Bank other than those set forth on Schedule IV attached hereto without Lender’s consent. 

(xxiv) “Monthly FF&E Expenditure Amount” means the monthly deposit for FF&E Expenditures required pursuant to
Section 6.4 of the Loan Agreement. 
 (xxv) “Monthly Franchise Amount” means the monthly deposit required
pursuant to Section 6.5 of the Loan Agreement. 
 (xxvi) “Monthly Operating Expense Amount” means the
monthly amount payable for Operating Expenses as set forth in the Annual Budget not otherwise paid or reserved for in the Accounts described in Sections 2(i), (ii), (iii) and (v) below, together with other amounts incurred by Borrower in
connection with the operation and maintenance of the Property and approved by Lender. 
 (xxvii) “Servicer”
means any servicer selected by Lender in its sole and absolute discretion to service the Loan on Lender’s behalf. 

(xxviii) “Supertel Trigger Period” means a period (i) commencing upon the date that (a) Supertel Hospitality
Inc., a Virginia corporation (“Supertel”) shall (1) voluntarily be adjudicated bankrupt or insolvent, (2) seek or consent to the appointment of a receiver or trustee for itself or for the Property, (3) file a petition
seeking relief under the bankruptcy or other similar laws of the United States, any state or any jurisdiction, (4) make a general assignment for the benefit of creditors, or (5) be unable to pay its debts as they mature; or (b) a
court shall enter an order, judgment or decree appointing, without the consent of Supertel, a receiver or trustee for it or for the Property or approving a petition filed against Supertel which seeks relief under the bankruptcy or other similar laws
of the United States, any state or any jurisdiction, and such order, judgment or decree shall remain undischarged or unstayed sixty (60) days after it is entered and (ii) expiring upon Lender’s receipt of evidence reasonably
acceptable to Lender that Supertel is no longer insolvent or subject to any bankruptcy or insolvency proceedings, which evidence may include, but not be limited to, a plan of reorganization (and, in the case of such plan of reorganization, the
Supertel Trigger Period would end on the effective date of such plan of reorganization). 
 (xxix) “Tax
Subaccount” has the meaning set forth in Section 2(i) hereof. 
 All terms used but not otherwise defined in this
Agreement shall have the same defined meanings set forth in the Loan Agreement, unless the context otherwise requires. 
 2.
Establishment of Accounts. Lender or Servicer, on behalf of Lender, has established an account (the “Deposit Account”) into which all funds in the Restricted Account shall, during

  
 4 

 
the continuance of any Cash Sweep Period, be deposited on a periodic basis as more particularly set forth in the Restricted Account Agreement. Lender or Servicer, on behalf of Lender, shall
maintain on a ledger entry basis the following subaccounts of the Deposit Account: 
 (i) An account into which Borrower shall
deposit, or cause to be deposited, the sums required to be deposited hereunder pursuant to Section 5(a) hereof for the payment of Taxes (the “Tax Subaccount”); 

(ii) An account into which Borrower shall deposit, or cause to be deposited, the sums required to be deposited hereunder pursuant to
Section 5(a) hereof for the payment of Insurance Premiums (the “Insurance Subaccount”); 
 (iii) An
account into which Borrower shall deposit, or cause to be deposited, the sums required to be deposited hereunder pursuant to Section 5(a) hereof for the payment of the Monthly FF&E Expenditure Amount (the “FF&E Expenditure
Subaccount”); 
 (iv) An account into which Borrower shall deposit, or cause to be deposited, the sums required to be
deposited hereunder pursuant to Section 5(a) hereof for the payment of the Monthly Franchise Amount (the “Franchise Subaccount”); 
 (v) An account into which Borrower shall deposit, or cause to be deposited, the sums required to be deposited hereunder pursuant to Section 5(a) hereof for the payment of interest accruing at the
Default Rate and late payment charges, if any, and Debt Service payments (the “Debt Service Subaccount”); 

(vi) An account into which Borrower shall deposit, or cause to be deposited, the sums required to cover the customary and reasonable
cash management servicing fees associated with the administration of the Accounts (the “Cash Management Servicing Fees Subaccount”); and 
 (vii) An account into which Borrower shall deposit, or cause to be deposited, all Excess Cash Flow, if any (the “Excess Cash Subaccount”). 

3. Account Names and Characteristics. The Accounts shall each be in the name of Borrower for the benefit of Lender or, in the
event Lender retains a Servicer to service the Loan, the Accounts shall, at Lender’s option, be in the name of Borrower for the benefit of Servicer, as agent for Lender. Each Account shall be maintained as an Eligible Account. The Accounts
shall be assigned the federal tax identification number of Borrower, which number is 52-1915958. The Accounts shall, at all times during the term of this Agreement, be under the sole dominion and control of Lender, who shall have the sole right to
withdraw funds from the Accounts for application in accordance with this Agreement. Borrower acknowledges and agrees that (i) neither Borrower nor any other party claiming on behalf of, or through, Borrower shall have any right, title or
interest, whether express or implied, in the Accounts or to withdraw or make use of any amounts from the Accounts, and (ii) unless required by applicable law, Borrower shall not be entitled to any interest on amounts held in the Accounts,
except as expressly set forth in Section 6.9.2 of the Loan Agreement. 

  
 5 

 4. Deposits into Restricted Account. 

(a) Borrower and Manager (i) shall cause all Rents from each Individual Property to be deposited directly into each respective Local
Bank and (ii) shall cause each Local Bank to transfer funds on deposit in the applicable Local Account to the Restricted Account (x) two (2) times each calendar week and (y) at any time that the funds on deposit in such Local
Account exceed $10,000.00. Without limitation of the foregoing, from and after the date hereof, Borrower shall notify and advise each Tenant under each Lease (whether such Lease is presently effective or executed after the date hereof), which
requires a monthly rental payment in excess of $5,000.00, to send directly to the Restricted Account all payments of Rent pursuant to an instruction letter in the form of Exhibit A attached hereto (a “Tenant Direction
Letter”). Notwithstanding the foregoing, Borrower shall not be required to deliver a Tenant Direction Letter to the Operating Lessee under the Operating Lease. 
 (b) Commencing with the first billing statement delivered after the date hereof and for each subsequent statement delivered, Borrower and Manager shall instruct all persons and entities that maintain open
accounts with Borrower or Manager or with whom Borrower or Manager does business on an “accounts receivable” basis with respect to the Property to deliver all payments due under such accounts to Borrower or Manager; and Borrower and
Manager, as applicable, shall cause such payments to be deposited in each respective Local Bank in accordance with Section 4(a) hereof. Borrower and Manager shall cause the applicable Local Bank to transfer funds on deposit in the applicable
Local Account to the Restricted Account in accordance with Section 4(a) hereof. Neither Borrower nor Manager shall direct any such person or entity to make payments due under such accounts in any other manner. 

(c) Commencing on the date hereof, Borrower and Manager shall cause all credit card receipts to be deposited directly into the Restricted
Account. Without limitation of the foregoing, Borrower shall instruct and shall continuously hereafter instruct each of the credit card banks with which Borrower has entered into agreements for the clearance of credit card receipts (collectively,
“Credit Card Banks”) that all credit card receipts with respect to the Property (net of any expenses charged for such processing) cleared by such Credit Card Banks shall be transferred by such Credit Card Banks by wire transfer or
the ACH System to Bank for deposit in the Restricted Account pursuant to an instruction letter in the form of Exhibit B attached hereto (a “Credit Card Bank Payment Direction Letter”). Borrower shall also instruct and shall
continuously hereafter instruct each of the credit card companies with which Borrower has entered into merchants agreements (collectively, “Credit Card Companies”) that all credit card receipts with respect to the Property (net of
any expenses charged for such processing) received by such Credit Card Companies shall be transferred by such Credit Card Companies by wire transfer or the ACH System to Bank for deposit in the Restricted Account pursuant to an instruction letter in
the form of Exhibit C attached hereto (a “Credit Card Company Payment Direction Letter”). 
 (d) If,
notwithstanding the provisions of this Section 4, Borrower or Manager receives any Rents or other income from the Property, then (i) 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, (ii) such amounts shall not be commingled with any other funds or property of Borrower or Manager, and (iii) Borrower or Manager shall deposit such amounts in the Restricted Account within three
(3) Business Days of receipt. 

  
 6 

 (e) Upon Lender’s request from time to time, Borrower shall provide a written statement
to Lender itemizing any amounts deposited in the Restricted Account by Borrower or Manager for the period covered by Lender’s request and such supporting documentation as Lender may reasonably require. 

5. Deposits; Disbursements. 
 (a) Deposits. Borrower shall make or cause to be made such deposits into the Accounts as may be required by the Loan Agreement and this Agreement. 

(b) Disbursements. 
 Provided that no Cash Sweep Period has occurred and is continuing, all funds in the Restricted Account shall be transferred to Borrower on each Business Day in accordance with the terms of the Restricted
Account Agreement. Upon the occurrence and during the continuance of a Cash Sweep Period, Lender or Servicer, on behalf of Lender, shall, on each Monthly Payment Date, withdraw all funds, if any, on deposit in the Deposit Account and disburse such
funds (the “Available Funds”) in the following order of priority: 
 (i) First, the monthly amount required to
be deposited pursuant to the Loan Agreement for the payment of Taxes shall be deposited in the Tax Subaccount; 
 (ii) Second,
the monthly amount required to be deposited pursuant to the Loan Agreement for the payment of Insurance Premiums shall be deposited in the Insurance Subaccount; 
 (iii) Third, funds sufficient to pay any interest accruing at the Default Rate and late payment charges, if any, shall be deposited in the Debt Service Subaccount; 

(iv) Fourth, funds sufficient to pay the Debt Service due on such Monthly Payment Date shall be deposited in the Debt Service
Subaccount; 
 (v) Fifth, funds sufficient to pay the customary and reasonable cash management servicing fees associated with
the administration of the Accounts for the calendar month immediately preceding such Payment Date shall be deposited in the Cash Management Servicing Fees Subaccount; 
 (vi) Sixth, funds sufficient to pay the Monthly FF&E Expenditure Amount shall be deposited in the FF&E Expenditure Subaccount; 

(vii) Seventh, funds sufficient to pay the Monthly Franchise Amount shall be deposited in the Franchise Subaccount; 

(viii) Eighth, provided that an Event of Default has not occurred, funds sufficient to pay the Monthly Operating Expense Amount for the
calendar month in which such Monthly Payment Date occurs shall be disbursed to Borrower pursuant to written instructions provided by Borrower; and 

  
 7 

 (ix) Ninth, provided that an Event of Default has not occurred, the remaining portion, if
any, of the Available Funds (the “Excess Cash Flow”) after deposits for items (i) through (viii) shall be deposited into the Excess Cash Subaccount. Further, by way of clarification, the following items shall not be deemed
Rent: (x) any funds transferred to Borrower from the Restricted Account pursuant to the terms of the Restricted Account Agreement and (y) any remaining Excess Cash Flow transferred to Borrower. 

6. Withdrawals. 
 (a) Withdrawals From the Tax Subaccount, the Insurance Premium Subaccount, the Debt Service Subaccount, and the Cash Management Servicing Fees Subaccount. Lender shall have the right to withdraw
amounts on deposit in the Tax Subaccount to pay Taxes at the Property on or before the date Taxes are due and payable. Lender shall have the right to withdraw amounts from the Insurance Subaccount to pay Insurance Premiums on or before the date
Insurance Premiums are due and payable. Lender shall have the right to withdraw amounts from the Debt Service Subaccount to pay default interest and late charges, if any, and to pay the Debt Service due on each Monthly Payment Date. Lender shall
have the right to withdraw amounts from the Cash Management Servicing Fees Subaccount to pay customary and reasonable cash management servicing fees which are due and payable to Servicer in connection with the administration of the Accounts.

 (b) Requests for Withdrawals from the FF&E Expenditure Subaccount and the Franchise Subaccount. Lender shall
disburse funds on deposit in the FF&E Expenditure Subaccount in accordance with the terms of Section 6.4 of the Loan Agreement. Lender shall disburse funds on deposit in the Franchise Subaccount in accordance with the terms of
Section 6.5 of the Loan Agreement. 
 (c) Disbursements from Excess Cash Subaccount. All funds in the Excess Cash
Subaccount shall be held as additional collateral for the Loan. Upon the termination of any Cash Sweep Period, provided that no other Cash Sweep Period has occurred and is continuing, Lender shall disburse all funds on deposit in the Excess Cash
Subaccount to Borrower pursuant to written instructions provided by Borrower. 
 (d) Sole Dominion and Control. Borrower
and Manager acknowledge and agree that the Accounts are subject to the sole dominion, control and discretion of Lender, its authorized agents or designees, including Bank, subject to the terms hereof. Neither Borrower nor Manager shall have any
right of withdrawal with respect to any Account except with the prior written consent of Lender. Lender shall have the right to control the disposition of funds in the Accounts, subject to the terms of this Agreement, without the further consent of
Borrower or Manager or any other person or entity. 
 (e) Deficiencies. Notwithstanding anything to the contrary herein,
Borrower acknowledges that Borrower is responsible for monitoring the sufficiency of funds deposited in the Accounts and that Borrower is liable for any deficiency in available funds, irrespective of whether Borrower has received any account
statement, notice or demand from Lender. If on any Monthly Payment Date, the amount of the Available Funds is insufficient to make all of the disbursements required to be made in subsections 5(b)(i) through (viii), inclusive, Borrower shall deposit
into the Deposit Account on or prior to such Monthly Payment Date, without the need for any notice or demand from Lender, the amount of such deficiency in immediately available funds. 

  
 8 

 7. Termination of Agreement. This Agreement shall terminate upon the repayment in
full of the Loan. Upon any such termination, (i) the funds remaining in the Accounts shall be disbursed to Borrower after first deducting all amounts then currently due and owing to Lender under the Loan Agreement and the other Loan Documents
and (ii) Lender shall provide written consent to terminate the Restricted Account Agreement as of the date this Agreement is terminated. 
 8. Funds in Accounts as Security for the Loan. As security for full payment of the Loan and timely performance of Borrower’s obligations under this Agreement, the Loan Agreement and the other
Loan Documents, Borrower hereby pledges, transfers and assigns to Lender, and grants to Lender a continuing security interest in and to the Accounts and all profits and proceeds thereof, which security interest is prior to all other liens (other
than customary set-off rights in favor of Bank for customary account fees and debits). Borrower agrees to execute, acknowledge, deliver, file or do, at its sole cost and expense, all other acts, assignments, notices, agreements or other instruments
as Lender may reasonably require in order to perfect the foregoing security interest, pledge and assignment or otherwise to fully effectuate the rights granted to Lender by this Section. Other than in connection with the Loan, Borrower has not sold
or otherwise conveyed the Accounts. The Accounts constitute “deposit accounts” within the meaning of the Uniform Commercial Code of the State of New York. 
 9. Default. 
 (a) Borrower’s and/or Manager’s failure to timely
and fully perform its obligations under this Agreement shall constitute a default under this Agreement (“Event of Default”) and also shall constitute an automatic “Event of Default” under and as defined in the Loan
Agreement and the other Loan Documents, and the occurrence of an “Event of Default” under and as defined in the Loan Agreement or any of the other Loan Documents shall constitute an automatic Event of Default under this Agreement.

 (b) Upon the occurrence of an Event of Default under this Agreement, Lender shall have the continuing exclusive control of,
and right to withdraw and apply, the funds in the Restricted Account and the Accounts to payment of any and all debts, liabilities and obligations of Borrower to Lender pursuant to or in connection with this Agreement, the Loan Agreement and the
other Loan Documents, in such order, proportion and priority as Lender may determine in its sole discretion. Lender’s right to withdraw and apply funds in the Restricted Account and the Accounts shall be in addition to all other rights and
remedies provided to Lender under this Agreement, the Loan Agreement and the other Loan Documents and at law or in equity as a result of Borrower’s default. Lender’s continuation of payments from the Accounts when and as contemplated by
this Agreement shall not be deemed Lender’s waiver or a cure of any default by Borrower. 
 (c) Without in any way limiting
any of Lender’s other rights and remedies hereunder or under the Loan Agreement or the other Loan Documents, upon the occurrence of an Event of Default under this Agreement and/or during the continuation of any Cash Sweep Period, Borrower
hereby acknowledges and agrees that Lender shall have the right, at its option, 

  
 9 

 
to deliver written notice to Bank directing Bank to disburse all available funds then and thereafter on deposit in the Restricted Account to an account designated by Lender (which account may, in
Lender’s sole discretion, be the Deposit Account) in accordance with the terms of the Restricted Account Agreement. 
 10.
Fees and Expenses. Borrower acknowledges and agrees that it solely shall be, and shall at all times remain, liable to Lender for all fees, charges, costs and expenses in connection with the Accounts, this Agreement and the enforcement hereof,
including, without limitation, the reasonable fees and expenses of legal counsel to Lender and Servicer as needed to enforce, protect or preserve the rights and remedies of Lender and/or Servicer under this Agreement. 

11. Miscellaneous. 
 (a) Notices. All notices and other communications under this Agreement will be made in writing and given in accordance with this Section. Notices are to be addressed to each party as provided below
and will be deemed to have been duly given (i) on being given by hand, if such party’s receipt thereof is acknowledged in writing, (ii) one Business Day after having been timely deposited for overnight delivery, fee prepaid, with any
reputable overnight courier service with a reliable tracking system, (iii) three Business Days after having been deposited in any post office or mail depository regularly maintained by the U.S. Postal Service and sent by certified mail, postage
prepaid, return receipt requested or (iv) on being sent by facsimile as of when confirmation of receipt is electronically recorded. Each party may establish a new address from time to time by written notice to the other given in accordance with
this Section; provided, however, that no change of address will be effective until written notice thereof actually is received by the party to whom such change of address is sent. Notice to outside counsel designated by a party entitled to receive
notice is for convenience only and is not required for notice to a party to be effective in accordance with this Section. 
  

			
	Address for Lender:	  	 Morgan Stanley Mortgage Capital Holdings LLC
 1585 Broadway
 10th Floor
 New York, New York 10036
 Attention: Stephen Holmes

Facsimile No. (212) 507-4859

		
	With a copy to:	  	 Alston & Bird LLP
 90
Park Avenue
 New York, New York 10016

Attn: Ellen M. Goodwin, Esq.
 Facsimile: (212)
210-9447

		
	Address for Borrower:	  	 Solomons Beacon Inn Limited Partnership
 1800 W. Pasewalk Ave., Suite 200
 Norfolk, NE 68701

Attention: Chief Financial Officer
 Facsimile No.
402.371.4229

  
 10 

			
	With a copy to:	  	 McGrath North Mullin & Kratz, PC LLO
 1601 Dodge Street, Suite 3700
 Omaha, NE 68102

Attention: Jason Benson
 Facsimile No.
402.952.6864

		
	Address for Operating Lessee:	  	 TRS Subsidiary, LLC
 1800 W.
Pasewalk Ave., Suite 200
 Norfolk, NE 68701
 Attention: Chief Financial Officer
 Facsimile No. 402.371.4229

		
	With a copy to:	  	 McGrath North Mullin & Kratz, PC LLO
 1601 Dodge Street, Suite 3700
 Omaha, NE 68102

Attention: Jason Benson
 Facsimile No.
402.952.6864

		
	Address for HMA:	  	 Hospitality Management Advisors, Inc.
 277 German Oak Drive
 Cordova, TN 38018
 Attention: Charles G. Swan, President
 Facsimile No. (901) 755-8230

		
	Address for KHC:	  	 Kinseth Hotel Corporation
 2
Quail Creek Circle
 North Liberty, IA 52317
 Attention: Chief Executive Officer
 Facsimile No. (319) 626-8350

		
	Address for SDC:	  	 Strandco, Inc.
 1109
48th Avenue North, Suite 211

Myrtle Beach, SC 29577
 Attention: John
Pharr
 Facsimile No. (843) 365-5486

 (b) Entire Agreement; Modification. This Agreement sets forth the entire agreement between the
parties hereto with respect to the subject matter hereof and supercedes all prior discussions, representations, communications and agreements (oral and written) by and among the parties hereto with respect thereto. Neither this Agreement nor any
terms hereof shall be waived, modified, supplemented or terminated in any manner whatsoever, except by a written instrument signed by all parties hereto and then only to the extent expressly set forth in such writing. 

  
 11 

 (c) Binding Effect; Joint and Several Obligations. The terms and provisions of this
Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, legal representatives, successors, and permitted assigns, whether by voluntary action of the parties or by operation of law. The
foregoing shall not be construed, however, to permit assignments or transfers otherwise prohibited under the Loan Agreement or the other Loan Documents. If Borrower consists of more than one person or entity, each shall be jointly and severally
liable to perform Borrower’s obligations under this Agreement. 
 (d) Duplicate Originals; Counterparts. This
Agreement may be executed in any number of duplicate originals, and each duplicate original shall be deemed to be an original. This Agreement (and each duplicate original) also may be executed in any number of counterparts, each of which shall be
deemed an original and all of which together shall constitute a fully executed agreement even though all signatures do not appear on the same document. 
 (e) Unenforceable Provisions. If any provision of this Agreement is found by competent judicial authority to be invalid or unenforceable, the other provisions of this Agreement that can be carried
out without the invalid or unenforceable provision will not be affected, and such invalid or unenforceable provision will be ineffective only to the extent of such invalidity or unenforceability and otherwise construed to the greatest extent
possible to accomplish fairly the purposes and intentions of the parties hereto. 
 (f) Ambiguity; Headings and Construction
of Certain Terms. Neither this Agreement nor any uncertainty or ambiguity herein shall be construed or resolved against Lender by virtue of the fact that such document has originated with Lender as drafter. The parties to this Agreement agree
that this Agreement shall be construed and interpreted according to the ordinary meaning of the words used so as to accomplish fairly the purposes and intentions of the parties hereto. Words used in this Agreement may be used interchangeably in
singular or plural form, and any pronoun shall be deemed to cover all genders. Section headings are for convenience only and shall not be used in interpretation of this Agreement. “Herein,” “hereof” and “hereunder” and
other words of similar import refer to this Agreement as a whole and not to any particular section, paragraph or other subdivision; and “section” refers to the entire section and not to any particular subsection, paragraph or other
subdivision. Reference to days for performance shall mean calendar days unless Business Days are expressly indicated. References to the “Loan Agreement” and the other “Loan Documents” shall mean such original documents and all
renewals, modifications and supplements to the foregoing. 
 (g) Governing Law. This Agreement shall be governed by the
laws of the State of New York (without giving effect to its conflicts of law rules), except with regard to payment of checks and other items and other issues relating to the operations of the Accounts or any other account to which funds from the
Accounts are transferred, which issues shall be governed by the laws of the state where the Accounts or such other account are located. 
 [NO FURTHER TEXT ON THIS PAGE] 

  
 12 

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

					
	BORROWER:
	
	SOLOMONS BEACON INN LIMITED PARTNERSHIP, a Maryland limited partnership
		
	By:	 	Solomons GP, LLC, a Delaware limited liability company, its general partner
		
	By:	 	 /s/ Kelly A. Walters

		 	Name:	 	Kelly A. Walters
		 	Title:	 	President
	
	OPERATING LESSEE:
	
	TRS SUBSIDIARY, LLC, a Delaware limited liability company
	
	 By: TRS Leasing, Inc., a Virginia corporation,
 its sole member

		
	By:	 	 /s/ Kelly A. Walters

		 	Name:	 	Kelly A. Walters
		 	Title:	 	President

  
 13 

 
					
	LENDER:
	
	MORGAN STANLEY MORTGAGE CAPITAL HOLDINGS LLC, a New York limited liability company
		
	By:	 	 /s/ Cynthia Eckes

		 	Name:	 	Cynthia Eckes
		 	Title	 	Authorized Signatory
	
	MANAGER:
	
	HOSPITALITY MANAGEMENT ADVISORS,, INC., a Tennessee corporation
		
	By:	 	 /s/ Roy Stephenson

		 	Name:	 	Roy Stephenson
		 	Title:	 	Secretary / Treasurer
	
	KINSETH HOTEL CORPORATION, an Iowa corporation
		
	By:	 	 /s/ Bruce Kinseth

		 	Name:	 	Bruce Kinseth
		 	Title:	 	Vice President
	
	STRANDCO, INC., a North Carolina corporation
		
	By:	 	 /s/ John W. Pharr

		 	Name:	 	John W. Pharr
		 	Title:	 	President

  
 14 

 EXHIBIT A 
 Form of Tenant Direction Letter 
 [BORROWER LETTERHEAD] 

                 , 200     

[Tenants under Leases] 
  

					
	•    	  	
Lease dated             between         
                    ,

as Landlord, and                     
    , as Tenant,
 concerning premises known as
	  	

 Gentlemen: 
 This letter shall constitute notice to you that the undersigned has granted a security interest in the captioned lease and all rents, additional rent and all other monetary obligations to landlord
thereunder (collectively, “Rent”) in favor of                      as lender (“Lender”), to secure certain of the
undersigned’s obligations to Lender. The undersigned hereby irrevocably instructs and authorizes you to disregard any and all previous notices sent to you in connection with Rent and hereafter to deliver all Rent to the following address:

  

			
	 [Borrower Name]
 c/o [Restricted Account Address]

	Attention:	 	  

 The instructions set forth herein are irrevocable and are not subject to modification in any
manner, except that Lender, or any successor lender so identified by Lender, may by written notice to you rescind or modify the instructions contained herein. 

 

	
	 Sincerely,
  
 [BORROWER]

 ACKNOWLEDGMENT AND AGREEMENT 
 The undersigned acknowledges notice of the security interest of Lender and hereby confirms that the undersigned has received no notice of any other pledge or assignment of the Rent and will honor the
above instructions. 
  

			
	[Tenant]
		
	By:	 	  

		 	Name:
		 	Its:
	
	Dated as of:                      ,
200    

  
 2 

 EXHIBIT B 
 Form of Credit Card Bank Payment Direction Letter 
 [BORROWER LETTERHEAD]

 [Date] 
 [Addressee]

  

					
	•  	  	Payment Direction Letter for              (the “Property”)

 Dear [            ]: 

                    (the
“Owner”), the owner of the Property has mortgaged the Property to
                                        (the
“Lender”) and Owner has agreed that all receipts received with respect to the Property will be paid directly to a bank selected by the Lender. Therefore, from and after [DATE], please remit all credit card receipts cleared by you
and due to the Owner [under that certain [REFERENCE AGREEMENT], dated [        ], [            ] (the “Agreement”) between the Owner
and you by transfer of such amounts by the ACH system or wire transfer to the following account: 
  

					
	Bank Name	 	
	ABA#	 	  
	 	

					
	Attn:	 	  
	 	

					
	Fax:	 	  
	 	

					
	Account of Restricted Account	 	

					
	Account #	 	  
	 	

 These payment instructions cannot be withdrawn or modified without the prior written consent of the
Lender or its designee, or pursuant to a joint written instruction from Owner and the Lender or its designee. Until you receive written instructions from the Lender or its designee, continue to send all payments due under the Agreement to [Bank
Name]. All payments due under the Agreement shall be remitted to [Bank Name] no later than the day on which such amounts are due. 

 If you have any questions concerning this letter, please contact
[            ] at [            ]. We appreciate your cooperation in this matter. 

 

			
	Sincerely,
	
	  

		
	By:	 	  

		 	Name:
		 	Title:

  
 2 

 EXHIBIT C 
 Form of Credit Card Company Payment Direction Letter 
 [BORROWER LETTERHEAD]

 [Date] 
 [Addressee]

  

					
	•  	  	Payment Direction Letter for              (the “Property”)

 Dear [            ]: 

                    (the
“Owner”), the owner of the Property has mortgaged the Property to
                                    (the “Lender”)
and the Owner has agreed that all receipts received with respect to the Property will be paid directly to a bank selected by the Lender. Therefore, from and after [DATE], please remit all payments due to the Owner under that certain [REFERENCE
AGREEMENT], dated [        ], [            ] (the “Agreement”) between the [Owner] [Lessee] [Manager] and you, as follows:

  

					
	Bank Name	 	
	ABA#	 	  
	 	

					
	Attn:	 	  
	 	

					
	Fax:	 	  
	 	

					
	Account of Restricted Account	 	

					
	Account #	 	  
	 	

 These payment instructions cannot be withdrawn or modified without the prior written consent of the
Lender or its designee, or pursuant to a joint written instruction from the Owner and the Lender or its designee. Until you receive written instructions from the Lender or its designee, continue to send all payments due under the Agreement to
[Bank]. All payments due under the Agreement shall be remitted to [Bank] no later than the day on which such amounts are due. 

 If you have any questions concerning this letter, please contact
[            ] at [            ]. We appreciate your cooperation in this matter. 

 

	
	Sincerely,
	
	  

  

			
	By:	 	  

	Name:	 	
	Title:	 	

  
 2 

 SCHEDULE I 

(Individual Properties managed by HMA) 
 201 Ocean Drive, Key Largo, Florida 33037 
 96 Daniel Drive, Danville, Kentucky 40422 

  
 3 

 SCHEDULE II 

(Individual Properties managed by KHC) 
 3001 Kirkwood Street, Burlington, Iowa 52601 
 611 1st Avenue, Coralville (Iowa City Area), Iowa
52241 
 804 West Taylor Street, Creston, Iowa 50801 
 3511 Main Street, Keokuk, Iowa 52632 
 1000 North Grand Avenue, Mt. Pleasant, Iowa 52641

 101 West Milwaukee Avenue, Storm Lake, Iowa 50588 
 3108 North Broadway Street, Pittsburg, Kansas 66762 
 106 East Highway 20, O’Neill, Nebraska
68763 
 1622 North Broadway Street, Menomonie, Wisconsin 54751 
 3000 New Pinery Road, Portage, Wisconsin 53901 

  
 4 

 SCHEDULE III 

(Individual Properties managed by SDC) 
 2012 East Marion Street, Shelby, North Carolina 28152 
 3301 Black Gap Road, Chambersburg,
Pennsylvania 17202 
 1740 New Butler Road, New Castle, Pennsylvania 16101 
 185 James Asbury Drive NW, Cleveland, Tennessee 37312 
 890 Willis Lane, Culpeper, Virginia 22701

 2108 South Main Street, Farmville CI, Virginia 23901 
 2011 South Main Street, Farmville DI, Virginia 23901 
 1730 North Main Street, Rocky Mount,
Virginia 24151 
 225 Comfort Inn Drive, Morgantown, West Virginia 26508 
 136 Ambrose Lane, Princeton, West Virginia 24740 

  
 5 

 SCHEDULE IV 

Local Accounts 

  
 6

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