Document:

Exhibit

CONFIDENTIAL SETTLEMENT AGREEMENT AND RELEASE
This Confidential Settlement Agreement and Release (the “Settlement Agreement”) is made and entered into by and between Gaiam, Inc. and Gaiam Americas, Inc. (collectively referred to as “Gaiam”) and Cinedigm Corp. and Cinedigm Entertainment Holdings, LLC (collectively referred to as “Cinedigm”) as of September 29, 2015 (the “Effective Date”). Gaiam and Cinedigm are referred to in this Settlement Agreement individually as a “Party” and collectively as the “Parties.”
1.BACKGROUND FACTS
This Settlement Agreement is made in light of the following facts:
		
	1.1
	As of approximately October 17, 2013, the Parties entered into the Membership Interest Purchase Agreement (“MIPA”), the Transition Services Agreement (“TSA”), the Cash Allocation Agreement (“CAA”), the Escrow Agreement, and the Contribution Agreement (collectively, and including any amendments to the foregoing, the “Agreements”) in connection with Cinedigm’s acquisition of Gaiam’s entertainment media business (or “EMB”) (herein, the “Acquisition”);

		
	1.2
	After the Acquisition’s closing, Gaiam provided certain services to Cinedigm pursuant to the TSA and the CAA (the “TSA/CAA Services”);

		
	1.3
	On January 19, 2015, Gaiam filed a Demand for Arbitration with the American Arbitration Association (“AAA”), and several days later Cinedigm filed a Counterclaim (which was subsequently amended), and the action was styled as Gaiam, Inc., et al. v. Cinedigm Corp., et al., Case No. 01-15-0002-4437 (the “AAA Arbitration”);

		
	1.4
	On February 11, 2015, Cinedigm filed a state court complaint to compel Gaiam to participate in a working capital arbitration, which was removed on March 4, 2015 to the United States District Court for the Central District of California and was thereafter styled as Cinedigm Corp., et al. v. Gaiam, Inc., et al., Case No. 2:15-cv-01557-SJO-AS (the “Court Litigation”).

		
	1.5
	Pursuant to an engagement letter entered into as of May 15, 2015, the parties commenced a working capital arbitration before Mr. Troy Dahlberg of KPMG (“KPMG”), and a Final Determination was issued as of September 11, 2015 (the “Working Capital Arbitration”);

Now, therefore, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
2.    SETTLEMENT OBLIGATIONS
		
	2.1
	Within three (3) business days after the Effective Date, the Parties shall file a joint stipulation and proposed order with the arbitrator in the AAA Arbitration to dismiss all claims and counterclaims in the AAA Arbitration with prejudice, and with each side bearing its own fees and costs.

		
	2.2
	Gaiam will not seek to confirm the arbitration award issued by KPMG in the Working Capital Arbitration, or to otherwise demand payment thereunder.  The Parties agree to bear their own fees and costs in connection with the Working Capital Arbitration.

NY01\SherC\4260976.2

		
	2.3
	Within fourteen (14) business days after the Effective Date, Gaiam will pay $2.3 million (Two Million Three Hundred Thousand Dollars) to Cinedigm via wire payment to the following account, as follows:

ACCOUNT NAME:
CINEDIGM CORPORATION CONCENTRATION ACCOUNT
ACCOUNT NUMBER:
 
ABA NUMBER:
322270288
SWIFT CODE:
OWBKUS6L
BANK:
CIT Bank, N.A., 
888 East Walnut Street 
Pasadena, CA 91101 
Contact: Joel Martinez, Assistant Vice President Client Banking Services 
Tel: 626-535-2331
		
	2.4
	The Parties agree that they will conduct a further arbitration (herein, the “Reconciliation Arbitration”). In this regard, Cinedigm alleges that Gaiam has improperly retained cash received after the Acquisition’s closing relating to the EMB and which is owed to Cinedigm, as reflected by the amounts identified in lines A through T of the chart entitled “Accounts Receivable Reconciliation” and submitted by Cinedigm in connection with the September 13, 2015 mediation, and which is attached hereto as Exhibit A.  Gaiam, for its part, denies that Cinedigm’s allegations have any merit and further disagrees with (1) the dollar amounts listed on lines A through T of Exhibit A; (2) the descriptions and categorizations that appear on lines A through T of Exhibit A; and (3) Cinedigm’s assertion that lines A through T of Exhibit A constitute the entire universe of transactions relevant to its contentions.  The Parties, however, have agreed that the following provisions shall govern the Reconciliation Arbitration:

		
	2.4.1
	The arbitrator’s sole task (and sole authority) in the Reconciliation Arbitration shall be to calculate the Cash Remittance Shortfall (if any).

		
	2.4.2
	“Cash Remittance Shortfall” shall mean the amount (if any) by which Gaiam’s EMB Post-Closing Cash Receipts exceed Gaiam’s EMB Post-Closing Remittances. “Gaiam’s EMB Post-Closing Cash Receipts” shall mean cash actually received by Gaiam after closing in payment of “Media Co. Receivables” (as defined by the MIPA and by the CAA). Gaiam’s EMB Post-Closing Cash Receipts expressly include cash receipts for receivables identified in the final calculation of Closing Working Capital and cash receipts for Media Co Receivables from post-Acquisition sales, but expressly exclude the $2,000,000 that Gaiam was contractually entitled to retain under the MIPA with respect to Netflix receivables.  For the avoidance of doubt, Gaiam’s allocation of and accounting for Gaiam’s EMB Post-Closing Cash Receipts shall be considered by the arbitrator in order to calculate the Cash Remittance Shortfall (if any). “Gaiam’s EMB Post-Closing Remittances” shall mean monies that Gaiam remitted directly to Cinedigm or to the “Escrow Account” (as defined in the MIPA) for distribution to Cinedigm as specified by the CAA.

NY01\SherC\4260976.2

		
	2.4.3
	For the avoidance of doubt, the purported validity or invalidity of any receivable (including any chargeback debit memo) under GAAP or otherwise, including whether a receivable (or chargeback debit memo) is “collectible,” shall not be considered by the arbitrator.  By way of example, and not by limitation, the arbitrator shall not consider lines U through Z of Exhibit A to this Settlement Agreement.  It is expressly agreed that such matters are outside the scope of the Reconciliation Arbitration.

		
	2.4.4
	The Parties shall mutually select a single arbitrator (“Arbitrator”), who must be a CPA presently employed by a recognized firm capable of serving as an accounting expert and who must have experience with accounting for sales of retail consumer products, to preside over the Reconciliation Arbitration.  This selection shall occur within 15 days after the Effective Date.  The Parties further agree that the Arbitrator may, in his or her discretion, retain an independent consultant (who must be jointly approved by the Parties) who has knowledge regarding the physical and digital distribution of retail consumer products, including the process of reconciling accounts receivable with chargebacks and other debits, in order to assist with the Reconciliation Arbitration (“Independent Consultant”).

		
	2.4.5
	The Parties agree that any documents that they produced or used in the Working Capital Arbitration and/or in the AAA Arbitration may be used in the Reconciliation Arbitration.  Additionally, subject to the entry of a non-disclosure agreement, the Parties agree to provide the Arbitrator with access to any non-attorney-client-privileged information that the Arbitrator deems necessary to conduct the Reconciliation Arbitration and to calculate the Cash Remittance Shortfall, including non-privileged information related to Gaiam’s separate fitness business and Gaiam’s accounting records and information related to Cinedigm’s consolidated entertainment business and Cinedigm’s accounting records.  The Parties will also provide all such information provided to the Arbitrator to the other Party.

		
	2.4.6
	The Arbitrator shall have the authority to conduct the Reconciliation Arbitration in the manner that he or she deems appropriate.  The Parties, however, will be afforded the opportunity to submit initial briefs setting forth their respective positions in writing, as well as the opportunity to file replies to the initial briefs.  To the extent the Arbitrator deems oral argument to be necessary, oral argument in the Reconciliation Arbitration shall be held as requested by the Arbitrator.  The Arbitrator will use his or her best efforts to complete the arbitration process no later than 60 days after the Arbitrator has been selected.  The Parties shall also request that the Arbitrator issue a reasoned award.

		
	2.4.7
	Gaiam will pay to Cinedigm an amount equal to the Cash Remittance Shortfall, provided that in no event shall such payment be less than $1 million or more than $5 million.  By way of example, and for purposes of illustration only:

		
	Ù
	If the Arbitrator determines that the Cash Remittance Shortfall is $10,000, then Gaiam will pay $1 million to Cinedigm;

		
	Ù
	If the Arbitrator determines that the Cash Remittance Shortfall is $3 million, then Gaiam will pay $3 million to Cinedigm; or

		
	Ù
	If the Arbitrator determines that the Cash Remittance Shortfall is $7 million, then Gaiam will pay $5 million to Cinedigm.

Neither the existence nor the amounts of the foregoing minimum and maximum awards shall be disclosed to the Arbitrator.

NY01\SherC\4260976.2

		
	2.4.8
	Within five (5) business days after the Arbitrator renders the final award in the Reconciliation Arbitration, the Parties will notify each other as to whether they intend to file a petition to vacate and/or modify the final award.  If neither Party provides notice of its intent to file such a petition within the foregoing period, Gaiam will, within five (5) business days thereafter, pay to Cinedigm the Cash Remittance Shortfall, consistent with and subject to the limitations identified in paragraph 2.4.7 above, via wire payment as described in paragraph 2.3 above.  If Gaiam provides notice of its intent to file such a petition within the foregoing period, Gaiam will pay to Cinedigm $1.0 million of the Cash Remittance Shortfall identified in the Arbitrator’s final award, representing the minimum award allowable under paragraph 2.4.7 above, within five (5) business days after providing such notice of intent.

		
	2.4.9
	Each side shall bear its own fees and costs in connection with the Reconciliation Arbitration, and shall split the Arbitrator’s fees equally (as well as any fees incurred by an Independent Consultant).

3.    RELEASE
		
	3.1
	Release of Claims.

		
	3.1.1
	Except for the obligations under this Settlement Agreement, Gaiam, on behalf of itself and on behalf of each of its predecessors, successors, parents, subsidiaries, and affiliated or related companies, and each of their respective present and former officers, directors, employees, representatives, agents, attorneys, insurers, and assigns, and each of them (the “Gaiam Releasing Parties”), hereby knowingly and voluntarily fully and forever releases and discharges Cinedigm and its predecessors, successors, parents, subsidiaries, and affiliated or related companies,

		
	3.1.2
	 and each of their respective present and former officers, directors, employees, representatives, agents, attorneys, insurers, and assigns, and each of them (the “Cinedigm Releasees”), from any and all claims, demands, liens, actions, suits, causes of action, obligations, controversies, debts, costs, attorneys’ fees, expenses, damages, judgments, orders, and liabilities of whatever kind or nature in law, equity, or otherwise, by reason of any matter, cause, or thing whatsoever, whether now known or unknown, suspected or unsuspected, subject to dispute or otherwise, from the beginning of time through the Effective Date, that the Gaiam Releasing Parties, or any of them, may have had, now have, or may hereafter purport to have against the Cinedigm Releasees, or any of them, including, without limitation, with respect to any matters arising out of, in connection with, or related to the Agreements, the Acquisition, the TSA/CAA Services, the AAA Arbitration, the Court Litigation, and/or the Working Capital Arbitration (the “Gaiam Released Claims”).

		
	3.1.3
	Except for the obligations under this Settlement Agreement, Cinedigm, on behalf of itself and on behalf of each of its predecessors, successors, parents, subsidiaries, and affiliated or related companies, and each of their respective present and former officers, directors, employees, representatives, agents, attorneys, insurers, and assigns, and each of them (the “Cinedigm Releasing Parties”), hereby knowingly and voluntarily fully and forever releases and discharges Gaiam and its predecessors, successors, parents, subsidiaries, and affiliated or related companies, and each of their respective present and former officers, directors, employees, representatives, agents, attorneys, insurers, and assigns, and each of them (the “Gaiam Releasees”), from any and all claims, demands, liens, actions, suits, causes of action, obligations, controversies, debts, costs, attorneys’ fees, expenses, damages, judgments, orders, and liabilities of whatever kind or nature in law, equity, or otherwise, by reason of any matter, cause, or thing whatsoever, whether now known or unknown, suspected or unsuspected, subject to dispute or otherwise, from the beginning of time through the Effective Date, that the Cinedigm Releasing Parties, or any of them, may have had, now have, or 

NY01\SherC\4260976.2

may hereafter purport to have against the Gaiam Releasees, or any of them, including, without limitation, with respect to any matters arising out of, in connection with, or related to the Agreements, the Acquisition, the TSA/CAA Services, the AAA Arbitration, the Court Litigation, and/or the Working Capital Arbitration (the “Cinedigm Released Claims”).
		
	3.1.4
	The term “Releasing Parties” means, as applicable, the Gaiam Releasing Parties and/or the Cinedigm Releasing Parties.  The term “Releasees” means, as applicable, the Gaiam Releasees and/or the Cinedigm Releasees.  The term “Released Claims” means, as applicable, the Gaiam Released Claims and/or the Cinedigm Released Claims.

		
	3.2
	Other or Additional Facts.  The Releasing Parties expressly and knowingly acknowledge that they may hereafter discover facts different from or in addition to those which they now know or believe to be true with respect to the Released Claims, and which, if known to them at the time they executed this Settlement Agreement, may have materially affected their decision to execute this Settlement Agreement.  The Releasing Parties acknowledge and agree that by reason of this Settlement Agreement and the releases contained herein, they are voluntarily, knowingly, and after receiving the advice of counsel assuming any risk of such unknown facts and such unknown and unsuspected claims and that this Settlement Agreement shall be and shall remain in full force and effect in all respects.

		
	3.3
	Unknown Claims.  The Releasing Parties further acknowledge that they have been advised of the existence of § 1542 of the California Civil Code, which provides:

A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.
Notwithstanding such provision, this Settlement Agreement shall constitute a full release of the Released Claims in accordance with its terms.  The Releasing Parties knowingly and voluntarily waive the provisions of § 1542, as well as any other statute, law, or rule of similar effect.
		
	3.4
	Covenant Not to Sue.  Except for the Reconciliation Arbitration and/or for the purpose of otherwise enforcing the terms of this Settlement Agreement, the Releasing Parties agree to refrain and forbear forever from commencing, instituting, prosecuting, or directly or indirectly participating in, or filing any claim for damages or demand in connection with, any lawsuit, action, or proceeding against the Releasees, or any of them, based upon any of the Released Claims.

4.    GENERAL PROVISIONS
		
	4.1
	Successors in Interest.  This Settlement Agreement, including the releases herein contained, shall be binding upon and inure to the benefit of the Parties and each of their successors-in-interest, including, without limitation, heirs, permitted assigns, and beneficiaries.

		
	4.2
	No Assignment or Transfer.

		
	4.2.10
	Gaiam represents and warrants that no other person or entity has, or has had, any interest in any of the Gaiam Released Claims; that it has the sole rights and exclusive authority to execute this Settlement Agreement on behalf of the Gaiam Releasing Parties; and that it has not sold, assigned, transferred, conveyed, or otherwise disposed of any of the Gaiam Released Claims.

		
	4.2.11
	Cinedigm represents and warrants that no other person or entity has, or has had, any interest in any of the Cinedigm Released Claims; that it has the sole rights and exclusive authority to execute this 

NY01\SherC\4260976.2

Settlement Agreement on behalf of the Cinedigm Releasing Parties; and that it has not sold, assigned, transferred, conveyed, or otherwise disposed of any of the Cinedigm Released Claims.
		
	4.2.12
	Each Party agrees to indemnify, defend, and hold harmless any person or entity released by such Party in this Settlement Agreement, against all claims, demands, controversies, liabilities, damages, debts, obligations, costs, expenses, losses, compensation, reasonable outside attorneys’ fees, and causes of action of any kind or nature, in law or in equity, incurred by such person or entity as a result of any other person or entity asserting any such claim, complaint, or right, or any such assignment, transfer, conveyance, or other disposition of any of the Released Claims by such Party.

		
	4.3
	No Admission of Liability.  This Settlement Agreement does not constitute an admission by any of the Releasees of any liability or wrongdoing whatsoever.

		
	4.4
	Mutually Drafted Settlement Agreement.  Each of the Parties has been fully and competently represented by counsel of their own choosing in the negotiations and drafting of this Settlement Agreement.  Accordingly, the Parties agree that any rule of construction of contracts resolving any ambiguities against the drafting Party shall be inapplicable to this Settlement Agreement.  Each term of this Settlement Agreement is contractual, not a mere recital, and is the result of negotiations between the Parties.

		
	4.5
	Final Written Expression.  This Settlement Agreement is integrated and once accepted according to its terms is intended by the Parties as a final and complete expression of their agreement with respect to the subject matter addressed herein.  This Settlement Agreement supersedes any and all prior or contemporaneous agreements, negotiations, or understandings, written or oral, between the Parties regarding the subject matter addressed herein.  The Parties hereto, and each of them, acknowledge that no other Party nor any agent or attorney for any other Party has made any promise, representation, or warranty whatsoever, express or implied, written or oral, not contained herein, concerning the subject matter hereof to induce the execution of this Settlement Agreement, and each of the Parties acknowledges that it has not executed this Settlement Agreement in reliance on any promise, representation, or warranty not contained herein.

		
	4.6
	Amendment.  This Settlement Agreement may not be amended, modified, or terminated, in whole or in part, except by an instrument in writing duly executed by the Parties or their authorized representatives.

		
	4.7
	Confidentiality.  Except as set forth below, the Parties agree to keep confidential and not disclose, describe, or discuss, either directly or indirectly, in any manner whatsoever, any information regarding the terms or substance of this Settlement Agreement to or with any person or entity.  The Parties may disclose only that the dispute was satisfactorily resolved.

		
	4.7.1
	Notwithstanding the provisions of paragraph 4.7 above, the Parties may disclose in confidence to their Board of Directors, employees, lawyers, accountants, insurers, financial advisors, creditors, and consultants such information concerning the terms of this Settlement Agreement as is necessary for such individuals to perform their professional functions, such information as may be required for compliance with statute or regulation or requested by governmental or regulatory authorities, such information as may be necessary to defend legal action brought by third parties, and such information as may be necessary to enforce this Settlement Agreement.

		
	4.7.2
	If disclosure of the terms of this Settlement Agreement is sought by court order, subpoena, or via some other discovery request, the Party from whom such disclosure is sought may make such disclosure, provided that said Party first notifies the other Party in writing as soon as practicable, but in no event later than five (5) business days from the date of service or the receipt of the court 

NY01\SherC\4260976.2

order, subpoena, or other discovery request, and, to the extent possible, no later than three (3) business days prior to the requested production.  The Party from whom disclosure is sought shall not oppose any effort by the other Party for a protective order or other relief from the court order or subpoena.
		
	4.8
	Non-Disparagement.  The Parties shall not disparage the Releasees regarding the subject matter of the Released Claims or the Reconciliation Arbitration.

		
	4.9
	Waiver.  Any waiver of any term of this Settlement Agreement must be in writing and signed by the Party waiving its rights hereunder.  Conduct that is arguably or actually inconsistent with rights granted under this Settlement Agreement shall not constitute a waiver unless an intent to waive rights under this Settlement Agreement is clearly expressed in writing as required by this paragraph.  The waiver of any term or condition contained in this Settlement Agreement shall not be construed as a waiver of any other term or condition contained in this Settlement Agreement.

		
	4.10
	Warranty of Independent Advice.  Each Party warrants and represents that it has received independent legal advice from such Party’s attorney with respect to the rights and obligations arising from, and the advisability of executing, this Settlement Agreement and with respect to the waiver of Section 1542 of the California Civil Code.

		
	4.11
	Warranty of Due Authorization.  Each Party warrants and represents that such Party is fully entitled and duly authorized to enter into and deliver this Settlement Agreement.  In particular, and without limiting the generality of the foregoing, each Party warrants and represents that it is fully entitled to grant the releases and undertake the obligations set forth herein.

		
	4.12
	Warranty of Power.  Each Party warrants and represents that it is duly organized and validly existing under the laws of the state or nation of its incorporation or formation, and that it has full power and authority to enter into this Settlement Agreement and carry out the provisions hereof.

		
	4.13
	No Third Party Beneficiaries.  No person or entity shall be considered a third party beneficiary of, or otherwise entitled to any rights or remedies under this Settlement Agreement, except with respect to the releases expressly provided for herein.

		
	4.14
	Governing Law.  This Settlement Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of California, without giving effect to its choice of law provisions.

		
	4.15
	Severability.  If any provision of this Settlement Agreement is declared invalid by any tribunal, then such provision shall be deemed automatically adjusted to the minimum extent necessary to conform to the requirements for validity as declared at such time and, as so adjusted, shall be deemed a provision of this Settlement Agreement as though originally included herein.  In the event that the provision invalidated is of such a nature that it cannot be so adjusted, the provision shall be deemed deleted from this Settlement Agreement as though such provision had never been included herein.  In either case, the remaining provisions of this Settlement Agreement shall remain in full force and effect.

		
	4.16
	Gender/Plural/Connectives.  Whenever in this Settlement Agreement the context may require, the masculine gender shall be deemed to include the feminine and/or neuter, and vice versa, the singular to include the plural, and vice versa, and (to give the releases herein the broadest interpretation and scope, as is desired by the Parties hereto) the connectives “and” and “or” to mean “and/or.”

NY01\SherC\4260976.2

		
	4.17
	Attorneys’ Fees/Costs.  All Parties shall bear their own attorneys’ fees, expenses, and costs in connection with, related to, or arising from this Settlement Agreement or otherwise relating to the matters released herein.

		
	4.18
	Headings.  Headings as used in this Settlement Agreement are for convenience only and are not a part of this Settlement Agreement.  The Parties acknowledge that they have read the full substance of each paragraph and are not relying upon the headings.

		
	4.19
	Notices.  Any notice appropriate or required to be given hereunder shall be by Federal Express and email, or, in the alternative, at the option of the sender, by messenger, and shall be to the following addresses, or such other address as is subsequently noticed in writing to all Parties:

If to Gaiam:
Bert H. Deixler 
Kendall Brill & Kelly LLP 
Santa Monica Blvd., Suite 1725 
Los Angeles, CA 90067 
bdeixler@kbkfirm.com
AND
John Jackson| 
Gaiam, Inc. 
833 W. South Boulder Road 
Louisville, CO 80027 
john.jackson@gaiam.com
If to Cinedigm:
Patricia Glaser 
Glaser Weil Fink Howard Avchen & Shapiro LLP 
Constellation Blvd., 19th Floor 
Los Angeles, CA 90067 
pglaser@glaserweil.com
AND
Gary S. Loffredo 
Cinedigm Corp. 
Broadway, 9th Floor  
New York, NY 10010  
gloffredo@cinedigm.com
		
	4.20
	Execution in Counterparts. The Parties may execute this Settlement Agreement by facsimile or PDF and in counterparts, each one of which shall have the same force and effect as an original, and all of which together shall constitute one and the same instrument.

NY01\SherC\4260976.2

IN WITNESS WHEREOF, the Parties have each caused this Settlement Agreement to be duly executed as of the Effective Date.
	
			
	Dated:
	September 30, 2015
	GAIAM, INC.
By: /s/ J. Johnson   
Its: EVP   

	Dated:
	September 30, 2015
	GAIAM AMERICAS, INC.
By: /s/ J. Johnson   
Its:  EVP   

	Dated:
	September 29, 2015
	CINEDIGM CORP.
By: /s/ Adam M. Mizel   
Its: COO   

	Dated:
	September 29, 2015
	CINEDIGM ENTERTAINMENT HOLDINGS, LLC
By: /s/ Adam M. Mizel   
Its:  COO   

NY01\SherC\4260976.2EX-10.1

 Exhibit 10.1 

Execution Version 
 STOCK
PURCHASE AGREEMENT 
 between 

SREP III Flight – Investco, L.P. 

“Purchaser” 

and 
 Condor Hospitality
Trust, Inc. 
 “Issuer” 

Dated as of March 16, 2016 

 TABLE OF CONTENTS 

 

									
	 	 	 	 	 	  	Page	 
				
	ARTICLE 1  	 		 	PURCHASE AND SALE OF THE SHARES	  	 	1	  
				
	1.1  	 		 	Purchase and Sale of the Shares	  	 	1	  
	1.2  	 		 	Purchase Price	  	 	1	  
	1.3  	 		 	Payment of Purchase Price	  	 	1	  
	1.4  	 		 	Delivery of Shares	  	 	2	  
	1.5  	 		 	Purchaser Exchange Act Filings	  	 	2	  
				
	ARTICLE 2  	 		 	REPRESENTATIONS AND WARRANTIES OF ISSUER	  	 	2	  
				
	2.1  	 		 	Listing	  	 	2	  
	2.2  	 		 	SEC Reports	  	 	2	  
	2.3  	 		 	No Material Adverse Change in Business	  	 	2	  
	2.4  	 		 	Financial Statements	  	 	3	  
	2.5  	 		 	Independent Accountants	  	 	3	  
	2.6  	 		 	Good Standing of Issuer	  	 	3	  
	2.7  	 		 	Subsidiaries	  	 	3	  
	2.8  	 		 	Capitalization	  	 	4	  
	2.9  	 		 	Shares	  	 	4	  
	2.10	 		 	Litigation	  	 	4	  
	2.11	 		 	No Conflicts	  	 	5	  
	2.12	 		 	Compliance with Laws; Permits and Orders	  	 	5	  
	2.13	 		 	Authorization	  	 	5	  
	2.14	 		 	REIT Status	  	 	6	  
	2.15	 		 	Investment Company Act	  	 	6	  
	2.16	 		 	Registration Rights	  	 	6	  
	2.17	 		 	No Stabilization or Manipulation	  	 	6	  
	2.18	 		 	Property	  	 	6	  
	2.19	 		 	Title Insurance	  	 	7	  
	2.20	 		 	Mortgages and Deeds of Trust	  	 	7	  
	2.21	 		 	Environmental Laws	  	 	7	  
	2.22	 		 	Internal Accounting and Other Controls	  	 	8	  
	2.23	 		 	Disclosure Controls	  	 	8	  
	2.24	 		 	Insolvency; Financial Covenants	  	 	8	  
	2.25	 		 	Absence of Labor Dispute	  	 	8	  
	2.26	 		 	Use of Proceeds	  	 	9	  
	2.27	 		 	No Finder’s Fees	  	 	9	  
	2.28	 		 	Insurance	  	 	9	  
	2.29	 		 	Absence of Undisclosed Liabilities	  	 	9	  
	2.30	 		 	Taxes	  	 	9	  
	2.31	 		 	No Registration	  	 	10	  
	2.32	 		 	Certain Information	  	 	10	  
				
	ARTICLE 3  	 		 	REPRESENTATIONS AND WARRANTIES OF PURCHASER	  	 	10	  
				
	3.1  	 		 	Authority	  	 	10	  
	3.2  	 		 	Brokers and Finders	  	 	10	  
	3.3  	 		 	Securities Act	  	 	11	  
	3.4  	 		 	Beneficial Ownership of Common Stock	  	 	11	  
	3.5  	 		 	Availability of Funds	  	 	11	  
	3.6  	 		 	Securities Offering Exemption	  	 	11	  
	3.7  	 		 	Legends	  	 	11	  
				
	ARTICLE 4  	 		 	Deliveries	  	 	12	  
				
	4.1  	 		 	Deliveries of Issuer	  	 	12	  

  
 -i- 

 TABLE OF CONTENTS 

(continued) 
  

									
	 	 	 	 	 	  	Page	 
				
	4.2  	 		 	Deliveries of Purchaser	  	 	13	  
				
	ARTICLE 5  	 		 	CONFIDENTIALITY; PUBLIC ANNOUNCEMENTS	  	 	13	  
				
	5.1  	 		 	Confidentiality	  	 	13	  
	5.2  	 		 	Public Announcements	  	 	13	  
				
	ARTICLE 6  	 		 	GENERAL PROVISIONS	  	 	13	  
				
	6.1  	 		 	Definitions	  	 	13	  
	6.2  	 		 	Fees and Expenses	  	 	17	  
	6.3  	 		 	Notices	  	 	17	  
	6.4  	 		 	Assignment	  	 	18	  
	6.5  	 		 	No Benefit to Others	  	 	18	  
	6.6  	 		 	Headings and Gender; Construction; Interpretation	  	 	18	  
	6.7  	 		 	Counterparts	  	 	19	  
	6.8  	 		 	Integration of Agreement	  	 	19	  
	6.9  	 		 	Waiver	  	 	19	  
	6.10	 		 	Governing Law	  	 	19	  
	6.11	 		 	Partial Invalidity	  	 	20	  
	6.12	 		 	Survival	  	 	20	  
	6.13	 		 	Specific Enforcement	  	 	20	  
		
	SCHEDULES	  			
				
	Schedule 1	 		 	Significant Subsidiary List	  			

  
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 STOCK PURCHASE AGREEMENT 

THIS STOCK PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of March 16, 2016, between SREP III
Flight – Investco, L.P. (“Purchaser”) and Condor Hospitality Trust, Inc. (“Issuer”). 
 WHEREAS,
Issuer desires to sell and Purchaser desires to purchase 3,000,000 shares (the “Shares”) of Issuer’s Series D Cumulative Convertible Preferred Stock, $0.01 par value per share (the “Series D Stock”), for the
consideration and on the terms set forth in this Agreement, which Shares will be offered and sold to Purchaser in a private placement without being registered under the Securities Act of 1933, as amended, and the rules and regulations of the
Securities and Exchange Commission (the “Commission”) thereunder (collectively, the “Securities Act”), in reliance upon Section 4(a)(2) thereof, and/or Regulation D thereunder; 

WHEREAS, promptly following the date hereof, Issuer will redeem for cash (the “Redemption”) all outstanding shares of Series
A Stock and Series B Stock (each as defined herein) and will use a portion of the aggregate Purchase Price (as defined herein) from the sale of the Shares to effect the Redemption; 

WHEREAS, on the date hereof, Issuer has entered into an agreement (the “IRSA Exchange Agreement”) with an affiliate of
Inversiones y Representaciones Sociedad Anónima (“IRSA”), the sole holder of the outstanding 3,000,000 shares of Series C Stock (as defined herein), providing for the exchange (the “IRSA Exchange”),
simultaneously with the issuance of the Shares to Purchaser, of such shares of Series C Stock for (i) 3,245,156 new shares of Series D Stock (the “IRSA Exchange Shares”), which includes 245,156 shares of Series D Stock issued
on account of accrued and unpaid dividends on the Series C Stock, (ii) $1,484,211 in cash and (iii) a promissory note in the principal amount of $1,011,599 from the Issuer to IRSA (the “IRSA Promissory Note”) on account of
the remaining accrued and unpaid dividends on the Series C Stock, such IRSA Exchange to occur on the date hereof; and 
 WHEREAS, certain
capitalized terms used in this Agreement are defined in Section 6.1 of this Agreement. 
 NOW, THEREFORE, in consideration of the
mutual representations, warranties, covenants and agreements contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 

ARTICLE 1 PURCHASE AND SALE OF THE SHARES 

1.1 Purchase and Sale of the Shares. 

On and subject to the terms and conditions of this Agreement, on the date hereof, Issuer shall sell, and Purchaser shall purchase the Shares;
and Issuer shall transfer and convey, and Purchaser shall purchase, the Shares free and clear of any and all Liens (other than those imposed by the Articles of Incorporation and federal and state Laws). Purchaser shall purchase the Shares in a
single tranche of 3,000,000 shares. 
 1.2 Purchase Price. 

The purchase price per share for the Shares shall be $10.00 (the “Purchase Price”). 

1.3 Payment of Purchase Price. 

On the date hereof, Purchaser shall pay or deliver: 

(a) to the Escrow Agent (as defined herein) for deposit into the Escrow Account (as defined herein) an amount in cash equal to $20,147,000
(the “Redemption Escrow Amount”), by wire transfer in immediately available funds in U.S. dollars; and 
 (b) to the
Issuer, an amount in cash equal to (1) the product of (a) the Purchase Price and (b) the number of Shares being purchased, minus (2) the Redemption Escrow Amount, by wire transfer in immediately available funds in U.S. dollars to
an account designated in writing by Issuer. A Federal Reserve Reference Number shall be requested by Purchaser at the time of the transfers for the purpose of assisting Issuer and the Escrow Agent in confirming receipt of the transfers. 

  
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 1.4 Delivery of Shares. 

On the date hereof, Issuer shall (a) irrevocably instruct its transfer agent to record the issuance of the Shares to Purchaser, within
three (3) Business Days, following the date hereof, in book-entry form pursuant to the transfer agent’s regular procedures, free and clear of all restrictive and other notations or legends except as provided in Section 3.7 hereof, and
(ii) deliver, to the extent not previously delivered, the items required to be delivered by Issuer set forth in Section 4.1. 

1.5 Purchaser Exchange Act Filings 

Purchaser acknowledges that it shall be responsible for any filings required by it or any member of the StepStone Group under Sections 13 or
16 of the Exchange Act in connection with the purchase or acquisition of any shares of Common Stock. 
 ARTICLE 2 REPRESENTATIONS AND
WARRANTIES OF ISSUER 
 Issuer hereby represents and warrants to Purchaser that: 

2.1 Listing. 

Issuer’s common stock, $0.01 par value per share (the “Common Stock”), is registered pursuant to Section 12(b) of
the Exchange Act and is currently listed and quoted on the NASDAQ Global Market under the trading symbol “CDOR.” Issuer has been provided until May 9, 2016 to regain compliance with the listing qualifications required to continue the
listing of the Common Stock on the NASDAQ Global Market. As of the date hereof, Issuer meets the listing qualifications required to transfer the listing of its Common Stock from the NASDAQ Global Market to the NASDAQ Capital Market and to continue
its listing thereon, subject only to a potential requirement that Issuer commit a reverse stock split within approximately 180 days if necessary to achieve a minimum share trading price of the Common Stock of $1.00 per share. Except as set forth in
the SEC Reports, Issuer is, and immediately after giving effect to the transactions contemplated by this Agreement and the Ancillary Agreements Issuer will continue to be, in compliance with the listing and maintenance requirements of the NASDAQ
Stock Market. 
 2.2 SEC Reports. 

(a) Except as set forth in the SEC Reports filed prior to the date hereof, Issuer has filed all reports required to be filed by it under the
Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the 12 months preceding the date hereof on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the
expiration of any such extension. Such reports required to be filed by Issuer under the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, together with any materials filed or furnished by Issuer under the Exchange Act, whether
or not any such reports were required, including the exhibits thereto and documents incorporated by reference therein, being collectively referred to herein as the “SEC Reports.” 

(b) As of their respective dates (or, if amended or superseded by a filing prior to the date hereof, then on the date of such filing), the SEC
Reports filed by Issuer complied in all material respects with the requirements of the Securities Act and the Exchange Act and the rules and regulations of the Commission promulgated thereunder, and none of the SEC Reports, when filed (or, if
amended or superseded by a filing prior to the date hereof, then on the date of such filing) by Issuer, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make
the statements therein, in the light of the circumstances under which they were made, not misleading. 
 2.3 No Material Adverse Change
in Business. 
 Since December 31, 2014 and except as otherwise disclosed in the SEC Reports: (a) there has not occurred any
material adverse change or any development that is reasonably likely to have a material adverse effect on the condition (financial, tax or otherwise), results of operations, business, properties or assets (tangible and intangible) of Issuer and its
Subsidiaries considered as one enterprise (other than changes or developments relating to (i) changes in general economic conditions in the United States, other than changes which adversely affect Issuer and

  
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its Subsidiaries to a materially greater extent than their competitors, (ii) the execution or the announcement of this Agreement, or the consummation of the transactions contemplated hereby,
or (iii) changes in GAAP or the accounting rules or regulations of the Commission) (a “Material Adverse Effect”); (b) except for regular quarterly distributions on the Common Stock (whether payable in cash, shares of
Common Stock or a combination thereof), and regular distributions declared, paid or made in accordance with the terms of any series of Preferred Stock (as defined herein), there has been no dividend or distribution of any kind declared, paid or made
by Issuer on any class of its capital shares; (c) there has not been an announcement by Issuer of an allegation made by a Governmental Body of fraud or malfeasance on the part of an Executive Officer of Issuer, without regard to its impact on
the results of operations, business, properties or assets of Issuer and its Subsidiaries; and (d) there has not been an announcement by Issuer of a breach of a covenant in any indebtedness of Issuer, or an announcement of the receipt by Issuer
of a notice of default issued by any lender of such indebtedness set forth (2.3(a) through (d) together, a “Material Adverse Change”). 

2.4 Financial Statements. 

The consolidated financial statements and supporting schedules of Issuer included in the SEC Reports (in each case, other than any pro forma
financial information and projections) present fairly, in all material respects, the financial position of Issuer and its consolidated Subsidiaries as of the dates indicated and the results of their operations for the periods specified; except as
otherwise stated in the SEC Reports, said financial statements have been prepared in conformity with GAAP applied on a consistent basis; and the supporting schedules, if any, included in the SEC Reports present fairly in all material respects the
information required to be stated therein. The statements of certain revenues and expenses of the properties acquired or proposed to be acquired, if any, included in the SEC Reports present fairly in all material respects the information set forth
therein and have been prepared, in all material respects, in accordance with the applicable financial statement requirements of Regulation S-X under the Exchange Act with respect to real estate operations acquired or to be acquired. The pro forma
financial statements and the other pro forma financial information (including the notes thereto), included in the SEC Reports present fairly, in all material respects, the information set forth therein, have been prepared, in all material respects,
in accordance with the Commission’s rules and guidelines with respect to pro forma financial statements and have been properly compiled on the basis described therein and the assumptions used in the preparation of such pro forma financial
statements and other pro forma financial information (including the notes thereto), if any, are reasonable and the adjustments used therein are appropriate to give effect to the transactions or circumstances referred to therein. All disclosures
contained in the SEC Reports regarding “non-GAAP financial measures” (as such term is defined by the rules and regulations of the Commission), if any, comply with Regulation G under the Exchange Act and Item 10 of Regulation S-K under
the Securities Act, to the extent applicable. All material agreements to which Issuer is a party or to which the property or assets of Issuer are subject are included as part of or identified in the SEC Reports, to the extent such agreements are
required to be included or identified pursuant to the rules and regulations of the Commission. 
 2.5 Independent Accountants. 

KPMG LLP, which has expressed its opinion on the audited financial statements and related schedules included in the SEC Reports, is an
independent registered public accounting firm within the meaning of the Securities Act. 
 2.6 Good Standing of Issuer. 

Issuer has been duly organized and is validly existing and in good standing as a corporation under the Laws of the State of Maryland, with
power and authority (corporate and other) to own, lease and operate its properties and to conduct its business as described in the SEC Reports; and Issuer is duly qualified to do business and is in good standing as a foreign corporation in all other
jurisdictions where its ownership or leasing of properties or the conduct of its business requires such qualification, except where the failure to qualify and be in good standing could not reasonably be expected to have or result in a Material
Adverse Effect. 
 2.7 Subsidiaries. 

Each Subsidiary listed on Schedule 1 (“Significant Subsidiary”) has been duly incorporated or formed and is validly
existing as a corporation, partnership or limited liability company in good standing under the Laws of the 

  
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jurisdiction of its incorporation or formation; has corporate, partnership or limited liability company power and authority to own, lease and operate its properties and to conduct its business
and is duly qualified as a foreign corporation, partnership or limited liability company to transact business; and is in good standing in each jurisdiction in which such qualification is required, except where the failure to qualify and be in good
standing could not reasonably be expected to have or result in a Material Adverse Effect. 
 2.8 Capitalization. 

(a) On the date hereof, the authorized capital stock of Issuer consists of (i) 200,000,000 shares of Common Stock, par value $0.01 per
share, of which 4,937,050 shares are issued and outstanding and (A) 23,593,519 shares are reserved for issuance pursuant to convertible securities (other than the Series D Stock) and warrants and (B) 39,664,475 shares are reserved for
issuance pursuant to the Series D Stock; (ii) 40,000,000 shares of Preferred Stock, par value $0.01 per share (“Preferred Stock”), which have been authorized and are issued and outstanding in three series as follows:
(A) 2,500,000 shares of Series A Cumulative Preferred Stock, par value $0.01 per share (“Series A Stock”), of which 803,270 shares are outstanding with an aggregate liquidation preference of $8,032,700 and on account of which
unpaid dividends of $1,612,618 have accrued; (B) 800,000 shares of Series B Cumulative Preferred Stock, par value $0.01 per share (“Series B Stock”), of which 332,500 shares are outstanding with an aggregate liquidation
preference of $8,312,500 and on account of which unpaid dividends of $2,045,799 have accrued; (C) 3,000,000 shares of Series C Cumulative Convertible Preferred Stock, par value $0.01 per share (“Series C Stock”), of which
3,000,000 shares are outstanding and will be cancelled in the IRSA Exchange with an aggregate liquidation preference of $30,000,000 and on account of which unpaid dividends of $4,947,370 have accrued; and (D) 6,000,000 shares of Series D Stock,
of which 3,000,000 shares will be issued pursuant to this Agreement and 3,245,156 shares will be issued in the IRSA Exchange pursuant to the IRSA Exchange Agreement. 

(b) All of the issued and outstanding shares of capital stock of each class of Issuer on the date hereof have been duly authorized and validly
issued and are fully paid and non-assessable. On the date hereof, other than shares of Common Stock reserved for issuance under Issuer’s equity compensation plans or arrangements for officers, directors and other Employees, outstanding
convertible securities (including the Series D Stock) and warrants, and in connection with dividends declared on shares of Common Stock payable in shares of Common Stock, no shares of the capital stock of Issuer are reserved for issuance. On the
date hereof, other than the Shares, the IRSA Exchange Shares and shares of Common Stock to be issued under Issuer’s equity compensation plans or arrangements for officers, directors and other Employees, or outstanding convertible securities and
warrants, Issuer has no obligation to issue any additional shares of its capital stock, or securities convertible into or exchangeable for shares of its capital stock. None of the shares of capital stock of Issuer outstanding on the date hereof has
been issued in violation of any preemptive rights of the current or past shareholders of Issuer. On the date hereof, other than as set forth above, no rights relating to the purchase of capital stock of any class or series of Issuer are issued or
outstanding nor are there any agreements, written or oral, providing for the issuance of any rights relating to the capital stock of any class or series of Issuer. With the exception of accrued and unpaid dividends on shares of Preferred Stock on
the date hereof, all dividends required to be paid on Issuer’s capital stock have been paid. 
 (c) All of the issued and outstanding
capital stock, membership interests or partnership interests of Issuer’s Subsidiaries have been duly authorized and validly issued, are fully paid and non-assessable and are owned directly or indirectly by Issuer, free and clear of any Liens,
except as set forth in the SEC Reports and except for such Liens that could not reasonably be expected to have or result in a Material Adverse Effect. 

2.9 Shares. 
 The Shares
have been duly authorized for issuance and sale pursuant to this Agreement and, when issued and delivered pursuant to this Agreement against payment of the consideration therefor specified herein, will be validly issued, fully paid and
non-assessable and will be issued in compliance with federal and state securities Laws. None of the Shares will be issued in violation of any preemptive rights, rights of first refusal or other similar rights to subscribe for or purchase securities
of Issuer. 
 2.10 Litigation. 

There is no Litigation before or by any court or other Governmental Body currently pending, or, to the knowledge of Issuer, threatened against
or adversely affecting Issuer or its Subsidiaries, their business or any of their 

  
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respective assets or properties, at law or in equity, which is required to be disclosed in the SEC Reports (other than as disclosed therein), or which could reasonably be expected to have or
result in a Material Adverse Effect or would materially and adversely affect the consummation of this Agreement or the transactions contemplated herein. 

2.11 No Conflicts. 

Neither Issuer nor any of its Subsidiaries is in violation of its respective articles of incorporation or other organizational document, or
its code of regulations or bylaws, as the case may be, or in default in the performance or observance of any obligation, agreement, covenant or condition contained in any contract, indenture, mortgage, loan agreement, note, lease or other instrument
to which it is a party or by which it or its respective properties may be bound, where such defaults could reasonably be expected to have or result in a Material Adverse Effect; and the execution and delivery of this Agreement and the consummation
of the issuance and sale of the Shares contemplated herein have been duly authorized by all necessary corporate action, and compliance by Issuer with its obligations hereunder will not conflict with or constitute a breach of, or default under (or
constitute a default which with the passage of time or giving of notice, or both, would constitute an event of a default), or result in the creation or imposition of any Lien upon any properties or assets of Issuer or its Subsidiaries pursuant to,
any contract, indenture, mortgage, loan agreement, note, lease or other instrument to which Issuer or any of its Subsidiaries is a party or by which it may be bound or to which any of the properties or assets of Issuer or any of its Subsidiaries is
subject, nor will such action result in any violation of the provisions of their respective articles of incorporation or other organizational document, or their respective code of regulations or bylaws, as the case may be, or, to the knowledge of
Issuer, any Law or Order; and no Consent or Order of any court or Governmental Body is required for the consummation by Issuer of the issuance and sale of the Shares contemplated by this Agreement, except such as has been or will be obtained or as
may be required under the Securities Act, the Exchange Act and state securities Laws in connection with the transactions contemplated hereby. 

2.12 Compliance with Laws; Permits and Orders. 

Neither Issuer nor any of its Subsidiaries is engaged in any activity or has omitted to take any action that is or creates a violation of any
Law applicable to Issuer or such Subsidiary, except where such violation could not reasonably be expected to have or result in a Material Adverse Effect. Neither Issuer nor any of its Subsidiaries is subject to any Order which has had or could
reasonably be expected to have or result in a Material Adverse Effect. Issuer and its Subsidiaries possess all Permits necessary for the lawful operation of their business as presently conducted and are in compliance with all such Permits and all
applicable Laws and Orders where a failure to have such Permits or to so comply could reasonably be expected to have or result in a Material Adverse Effect. Neither Issuer nor any of its Subsidiaries has received any written notice of proceedings
relating to the revocation or modification of any Permit which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, could reasonably be expected to have or result in a Material Adverse Effect. To the knowledge
of Issuer, no officer, director or Employee of Issuer or any of its Subsidiaries is subject to any Order that prohibits such officer, director or Employee from engaging in or continuing any conduct, activity, or practice relating to Issuer, its
Subsidiaries or their respective businesses except where such prohibition could not reasonably be expected to have or result in a Material Adverse Effect. To the knowledge of Issuer, neither Issuer nor any of its Subsidiaries has at any time during
the last five years (a) made any unlawful contribution to any political candidate, or failed to disclose fully any contribution in violation of Law or (b) made any payment to any federal, state or local governmental, regulatory or
administrative officer or official, or other Person charged with similar public or quasi-public duties, other than payments required or permitted by the Laws of the United States or any jurisdiction thereof. Neither Issuer nor any of its
Subsidiaries has received at any time any written notice or other written communication from any Governmental Body or any other Person regarding (a) any actual, alleged, possible, or potential violation of, or failure to comply with, any Law or
(b) any actual, alleged, possible, or potential obligation on the part of Issuer or any of its Subsidiaries to undertake, or to bear all or any portion of any Liability related to, any non-environmental remedial action of any nature, where such
violation or obligation could reasonably be expected to have or result in a Material Adverse Effect. 
 2.13 Authorization. 

Issuer’s Board of Directors has approved this Agreement and the Ancillary Agreements and the transactions contemplated hereby and
thereby, including the Redemption. Issuer has the full right, power and authority to execute and deliver this Agreement and the Ancillary Agreements and to perform its obligations under 

  
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this Agreement and the Ancillary Agreements, including the issuance and sale of the Shares pursuant to this Agreement, the issuance and sale of the IRSA Exchange Shares pursuant to the IRSA
Exchange Agreement and the Redemption; and all corporate action required to be taken for the due and proper authorization, execution and delivery of this Agreement and the Ancillary Agreements has been duly and validly taken. No approval of
Issuer’s shareholders is required to consummate the transactions contemplated by this Agreement and the Ancillary Agreements. This Agreement and the Ancillary Agreements represent valid and binding obligations of Issuer, enforceable against
Issuer in accordance with their terms, except as enforceability may be limited by applicable equitable principles or by bankruptcy, insolvency, reorganization, moratorium, or similar Laws affecting creditors’ rights generally, by the exercise
of judicial discretion in accordance with equitable principles and by public policy to the extent that any provision relates to indemnification, contribution or exculpation. 

2.14 REIT Status. 

Issuer has been subject to taxation as a real estate investment trust (“REIT”) within the meaning of Sections 856 and 857 of
the Code and has qualified as a REIT since its first taxable year through December 31, 2015, has been organized and operated since December 31, 2015 to the date of this representation as a REIT and intends to continue be organized and to
operate in such a manner as to qualify as a REIT for its taxable year ending December 31, 2016, and has not taken or failed to take any action where such action or failure to take action could result in a challenge to its taxation or
qualification as a REIT, and no such challenge is pending or threatened. 
 2.15 Investment Company Act. 

Neither Issuer nor any of its Subsidiaries is, or will be immediately after the consummation of the issuance and sale of the Shares
contemplated by this Agreement or the issuance and sale of the IRSA Exchange Shares contemplated by the IRSA Exchange Agreement, required to be registered as an investment company under the Investment Company Act of 1940, as amended. 

2.16 Registration Rights. 

There are no Persons with registration or other similar rights to have any equity or debt securities of Issuer or any affiliate (as defined in
Rule 501(b) of Regulation D) registered for sale under a registration statement, except for rights contained in the Investor Rights Agreement and the IRSA Registration Rights Agreement. 

2.17 No Stabilization or Manipulation. 

None of Issuer or any of its Subsidiaries or, to Issuer’s knowledge, any of the officers and directors thereof acting on Issuer’s or
such Subsidiaries’ behalf has taken, directly or indirectly, any action resulting in a violation of Regulation M under the Exchange Act or designed to cause or result in, or which has constituted or which reasonably might be expected to
constitute, the stabilization or manipulation of the price of the Common Stock. 
 2.18 Property. 

Except as described in the SEC Reports: (a) Issuer or its Subsidiaries have good and marketable title or leasehold interest, as the case
may be, to the Portfolio Properties described in the SEC Reports as being owned by Issuer or its Subsidiaries (except with respect to properties described in the SEC Reports as being held by Issuer through joint ventures), in each case free and
clear of all Liens and defects (collectively, “Defects”), except where such Defects could not reasonably be expected to have or result in a Material Adverse Effect; (b) the joint venture interest in each Portfolio Property
described in the SEC Reports as being held by Issuer through a joint venture is owned free and clear of all Defects except for such Defects that could not reasonably be expected to have or result in a Material Adverse Effect; (c) all Liens on
or affecting the Portfolio Properties of Issuer or its Subsidiaries are disclosed in the SEC Reports, except for any such interests that could not reasonably be expected to have or result in a Material Adverse Effect; (d) none of Issuer, its
Subsidiaries or, to the knowledge of Issuer, any lessee of any of the Portfolio Properties is in default under any of the leases governing the Portfolio Properties, except such defaults that could not reasonably be expected to have or result in a
Material Adverse Effect, and Issuer does not know of any event which, but for the passage of time or the giving of notice, or both, would constitute a default under any of such leases, except such defaults that could not reasonably be expected to
have or result in a Material Adverse Effect; (e) assuming that the contracts are valid and binding obligations of the Third Parties party thereto, all contracts of 

  
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Issuer and any Subsidiary relating to franchising or the provision of property management or similar services are enforceable by and in the name of Issuer or a Subsidiary, as the case may be,
except as could not reasonably be expected to have or result in a Material Adverse Effect; (f) each of the Portfolio Properties complies with all applicable Law, except for such failures to comply that could not reasonably be expected to have
or result in a Material Adverse Effect; and (g) neither Issuer nor any Subsidiary has any knowledge of any pending or threatened condemnation proceedings, zoning change or other proceeding or action that would in any manner affect the size of,
use of, improvements on, construction or access to the Portfolio Properties, except such proceedings, changes, or actions that could not reasonably be expected to have or result in a Material Adverse Effect. 

2.19 Title Insurance. 

Issuer or its Subsidiaries have title insurance on each of the Portfolio Properties (except with respect to each property described in the SEC
Reports as held by Issuer through a joint venture): (a) insuring that Issuer or the applicable Subsidiary has good and marketable title (or leasehold interest) to the applicable Portfolio Property, free and clear of all Defects other than such
Defects as could not reasonably be expected to have or result in a Material Adverse Effect, and (b) in an amount as is commercially reasonable for such Portfolio Property and consistent with the types and amounts of insurance typically
maintained by owners and operators of similar properties except, in each case, where the failure to have such title insurance could not reasonably be expected to have or result in a Material Adverse Effect. The joint venture owning each property
described in SEC Reports as held by Issuer through a joint venture has title insurance on such property: (i) insuring that such joint venture has good and marketable title (or leasehold interest) to the applicable Portfolio Property, free and
clear of all Defects other than such Defects as could not reasonably be expected to have or result in a Material Adverse Effect, and (ii) in an amount as is commercially reasonable for such Portfolio Property and consistent with the types and
amounts of insurance typically maintained by owners and operators of similar properties, except in each case, where the failure to have such title insurance could not reasonably be expected to have or result in a Material Adverse Effect. 

2.20 Mortgages and Deeds of Trust. 

The notes secured by the mortgages and deeds of trust encumbering the Portfolio Properties (except with respect to each property described in
the SEC Reports as held by Issuer through a joint venture) are not convertible, and said mortgages and deeds of trust are not cross-defaulted or cross-collateralized to any property that is not a Portfolio Property, except where such cross-default
or cross-collateralization, if triggered, could not reasonably be expected to have or result in a Material Adverse Effect. 
 2.21
Environmental Laws. 
 Except as disclosed in writing to Purchaser, (a) with respect to the Portfolio Properties there (i) is,
to Issuer’s knowledge, no unlawful presence of any Hazardous Materials in violation of Environmental Laws, and (ii) are, to Issuer’s knowledge, no spills, releases, discharges or disposals of Hazardous Materials in violation of
Environmental Laws that have occurred or are presently occurring as a result of any construction on or operation and use of the Portfolio Properties, which presence or occurrence in (i) or (ii) above could reasonably be expected to have or
result in a Material Adverse Effect; (b) in connection with the construction on or operation and use of the Portfolio Properties, Issuer represents that Issuer has no knowledge of (i) any failure to comply with all applicable Environmental
Laws except where such failure could not reasonably be expected to have or result in a Material Adverse Effect, (ii) the receipt by Issuer or any Subsidiary of any written notice of a claim pursuant to any Environmental Law or under common law
pertaining to Hazardous Materials on or originating from any Portfolio Property that could reasonably be expected to have or result in a Material Adverse Effect, (iii) the receipt by Issuer or any Subsidiary of any written notice from any
Governmental Body claiming any violation of any Environmental Law that could reasonably be expected to have or result in a Material Adverse Effect, or (iv) the inclusion or proposed inclusion of any Portfolio Property on the National Priorities
List issued pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. §§ 9601 et seq., by the EPA, on the Comprehensive Environmental Response, Compensation, and Liability Information System database
maintained by the EPA, or on any similar list published by any Governmental Body of contaminated sites potentially requiring removal, remediation, or response action pursuant to any other Environmental Law, except where such inclusion could not
reasonably be expected to have or result in a Material Adverse Effect; and (c) to Issuer’s knowledge, Issuer has received and is in compliance with all Environmental Permits in connection with Issuer’s operation and use of the
Portfolio Properties, except where such noncompliance could not reasonably be expected to have or result in a Material Adverse Effect. 

  
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 2.22 Internal Accounting and Other Controls. 

Issuer and its Subsidiaries maintain a system of internal accounting and other controls sufficient to provide reasonable assurances that
(a) transactions are executed in accordance with management’s general or specific authorizations, (b) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain
accountability for assets, (c) access to assets is permitted only in accordance with management’s general or specific authorization and (d) the recorded accounting for assets is compared with existing assets at reasonable intervals
and appropriate action is taken with respect to any differences. Issuer has no material weaknesses in its internal control over financial reporting and, except as described in the SEC Reports, since the end of Issuer’s most recent audited
fiscal year, there has been no change in Issuer’s internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, Issuer’s internal control over financial reporting. 

2.23 Disclosure Controls. 

Issuer has established and maintains disclosure controls and procedures (as such term is defined in Rules 13a-15 and 15d-15 under the Exchange
Act) in accordance with the rules and regulations under the Sarbanes-Oxley Act of 2002, the Securities Act and the Exchange Act. 
 2.24
Insolvency; Financial Covenants. 
 (a) After giving effect to the issuance and sale of the Shares contemplated by this Agreement and
the issuance and sale of the IRSA Exchange Shares and the IRSA Promissory Note contemplated by the IRSA Exchange Agreement, neither Issuer nor any of its Subsidiaries will: (i) be insolvent (either because its financial condition is such that
the sum of its debts is greater than the fair market value of its assets or because the fair saleable value of its assets is less than the amount required to pay its probable liabilities on its existing debts as they mature); (ii) have
unreasonably small capital with which to engage in its business; or (iii) have incurred debts beyond its ability to pay as they become due. Issuer reasonably believes, based on discussions with representatives of KPMG LLP as of a recent date,
that Issuer will receive an opinion from KPMG LLP with respect to its financial statements as of and for the year ending December 31, 2015 that will not contain any “going concern” determination, whereby the independent auditors
expressed substantial doubt as to Issuer’s ability to continue to meet its obligations for the next 12 months. 
 (b) After giving
effect to the transactions contemplated by this Agreement and the IRSA Exchange Agreement, neither Issuer nor any of its Subsidiaries is or will be in breach of any financial covenant contained in any indebtedness that could reasonably be expected
to have or result in a Material Adverse Effect; nor does Issuer have knowledge of any existing condition, including the transactions contemplated by this Agreement, that will, with the passage of time, result in a default under any indebtedness.

 2.25 Absence of Labor Dispute. 

Except for matters which would not, individually or in the aggregate, have a Material Adverse Effect: (a) neither Issuer nor any of its
Subsidiaries is engaged in any unfair labor practice; (b) there is (i) no unfair labor practice complaint pending or, to the best knowledge of Issuer, threatened against Issuer or any of its Subsidiaries before the National Labor Relations
Board, and no grievance or arbitration proceeding arising out of or under collective bargaining agreements is pending or threatened, (ii) no strike, labor dispute, slowdown or stoppage pending or, to the best knowledge of Issuer, threatened
against Issuer or any of its Subsidiaries, and (iii) no union representation dispute currently existing concerning the employees of Issuer or any of its Subsidiaries or, to the best knowledge of Issuer, the employees of management companies
that operate Issuer’s hotels (the “Management Companies”); and (c) to best knowledge of Issuer, (i) no union organizing activities are currently taking place concerning the employees of Issuer or any of its
Subsidiaries and (ii) there has been no violation of any federal, state, local or foreign law relating to discrimination in the hiring, promotion or pay of employees, any applicable wage or hour laws or any provision of the Employee Retirement
Income Security Act of 1974 or the rules and regulations promulgated thereunder concerning the employees of Issuer or any of its Subsidiaries or the Management Companies. 

  
 -8- 

 2.26 Use of Proceeds. 

Issuer shall use the proceeds received from the transactions contemplated herein for the purpose of effecting the Redemption. Any proceeds
that remain following such redemptions shall be used to fund Issuer’s acquisition of new limited service hotel properties. 
 2.27
No Finder’s Fees. 
 Except as previously disclosed to Purchaser, Issuer has not incurred (directly or indirectly) nor shall it
incur, directly or indirectly, any Liability for any broker’s, finder’s, financial advisor’s or other similar fee, charge or commission in connection with this Agreement, the IRSA Exchange Agreement or the transactions contemplated
hereby or thereby. 
 2.28 Insurance. 

Issuer and its Subsidiaries, their assets and properties and their Employees are insured under various policies of general liability and other
forms of insurance, which policies are of the type and in the amounts customary and adequate for their business. 
 2.29 Absence of
Undisclosed Liabilities. 
 Issuer and its Subsidiaries have no material Undisclosed Liabilities. 

2.30 Taxes. 
 (a) All Tax
Returns required to be filed by or on behalf of Issuer or any Subsidiary have been duly and timely filed with the appropriate Taxing Authority in all jurisdictions in which such Tax Returns are required to be filed (after giving effect to any valid
extensions of time in which to make such filings), and all such Tax Returns are true, complete, and correct in all respects, except, other than with respect to federal income Tax Returns of Issuer, where such failure to file or failure to be true,
complete, and correct could not reasonably be expected to have or result in a Material Adverse Effect. All Taxes payable by or on behalf of Issuer or any Subsidiary have been fully and timely paid (whether or not shown on any Tax Return), except
where such failure to fully and/or timely pay could not reasonably be expected to have or result in a Material Adverse Effect. With respect to any period for which Tax Returns of or relating to Issuer or any of its Subsidiaries have not yet been
filed or for which Taxes are not yet due or owing, Issuer has made due and sufficient accruals for such material Taxes on the face of the most recent balance sheet included in the financial statements of Issuer and on its Books and Records. All
required estimated Tax payments sufficient to avoid any underpayment penalties have been made by or on behalf of Issuer and each Subsidiary, except where such failure to make such payments could not reasonably be expected to have or result in a
Material Adverse Effect. Issuer has not incurred any Liability for Taxes under Section 857(b), 860(c), or 4981 of the Code. There are no Liens as a result of any unpaid Taxes upon any of the assets of Issuer or any of its Subsidiaries, except
for such Liens as could not reasonably be expected to have or result in a Material Adverse Effect. Except as previously disclosed to Purchaser, neither Issuer nor any of its Subsidiaries is the subject of any audit, examination or other proceeding
in respect of Taxes, and neither Issuer nor any of its Subsidiaries has received written notice that it is the subject of any audit, examination or other proceeding in respect of Taxes by any Taxing Authority. No deficiencies for any Taxes have been
proposed, asserted or assessed against Issuer or any of its Subsidiaries, and no requests for waivers of the time to assess any such Taxes are pending, except where such deficiencies could not reasonably be expected to have or result in a Material
Adverse Effect. 
 (b) Each of Issuer and its Subsidiaries has complied in all respects with all applicable Laws relating to the payment and
withholding of Taxes and has duly and timely withheld and paid over to the appropriate Taxing Authority all amounts required to be so withheld and paid under all applicable Laws, except where such failure to comply, withhold or pay could not
reasonably be expected to have or result in a Material Adverse Effect. 

  
 -9- 

 (c) Issuer and its Subsidiaries have disclosed on their federal income Tax Returns all positions
taken therein that could give rise to substantial understatement of federal income tax within the meaning of Section 6662 of the Code. 

(d) Neither Issuer nor any of its Subsidiaries have participated in any reportable transaction, as defined in Treasury Regulation
Section 1.6011-4(b)(1), or a transaction substantially similar to a reportable transaction, or any listed transaction as defined in Treasury Regulation Section 1.6011-4(b)(2). 

(e) Neither the Issuer nor any of its Subsidiaries is subject to any private letter ruling of the IRS or comparable rulings of any Taxing
Authority. 
 (f) The Issuer has not engaged in any transactions that would give rise to “redetermined rents” or “excess
interest” or “redetermined deductions” or “redetermined TRS service income” described in Section 857(b)(7) of the Code. 

(g) The Issuer has never paid any “preferential dividends” within the meaning of Section 562 of the Code. 

(h) For purposes of this Section 2.30, any reference to Issuer or its Subsidiaries shall be deemed to include any Person which merged
with or was liquidated into Issuer or any Subsidiary of Issuer. 
 2.31 No Registration. 

(a) Assuming the accuracy of the representations and warranties of Purchaser contained in Article 3 hereof and Purchaser’s
compliance with its agreements set forth herein, it is not necessary in connection with the offer, issuance, sale and delivery of the Shares in the manner contemplated by this Agreement to register the offer or sale of any of the Shares under the
Securities Act. 
 (b) Assuming the accuracy of the representations and warranties of IRSA in the IRSA Exchange Agreement and its compliance
with its agreements set forth therein, it is not necessary in connection with the offer, issuance, sale and delivery of the IRSA Exchange Shares and the IRSA Promissory Note in the manner contemplated by the IRSA Exchange Agreement to register the
offer or sale of any of the IRSA Exchange Shares or the IRSA Promissory Note under the Securities Act. 
 2.32 Certain Information.

 All information provided by Issuer to Purchaser or Purchaser’s representatives in connection with the transactions contemplated
by this Agreement, regardless of when provided, is true and correct in all material respects. 
 ARTICLE 3 REPRESENTATIONS AND WARRANTIES
OF PURCHASER 
 Purchaser hereby represents and warrants to Issuer as follows: 

3.1 Authority. 

Purchaser has full power and authority to enter into this Agreement. This Agreement is a valid and binding obligation of Purchaser enforceable
against Purchaser in accordance with its terms, except as enforceability may be limited by applicable equitable principles or by bankruptcy, insolvency, reorganization, moratorium, or similar Laws affecting creditors’ rights generally, and by
the exercise of judicial discretion in accordance with equitable principles. 
 3.2 Brokers and Finders. 

Neither Purchaser nor any other member of the StepStone Group has incurred any Liability to any party for any brokerage fees, agent’s
commissions, or finder’s fees in connection with the transactions contemplated by this Agreement. 

  
 -10- 

 3.3 Securities Act. 

Purchaser is acquiring the Shares for its own account and not with a view towards their distribution within the meaning of
Section 2(a)(11) of the Securities Act in any manner that would be in violation of the Securities Act; provided, however, that by making the representations herein, Purchaser does not agree to hold any of the Shares for any minimum or other
specific term and reserves the right to dispose of the Shares at any time in accordance with or pursuant to a registration statement or an exemption under the Securities Act. 

3.4 Beneficial Ownership of Common Stock. 

As of the date hereof, neither Purchaser nor any other member of the StepStone Group is the Beneficial Owner of (a) any Common Stock or
(b) any securities or other instruments representing the right to acquire Common Stock. Other than pursuant to the Investor Rights Agreement, neither Purchaser nor any other member of the StepStone Group has a formal or informal agreement,
arrangement or understanding with any Person (other than Issuer) to acquire, dispose of or vote any securities of Issuer. 
 3.5
Availability of Funds. 
 Purchaser has available cash in an amount sufficient for Purchaser to pay the aggregate Purchase Price for the
Shares and all fees, expenses and other amounts contemplated to be paid by Purchaser in connection with the transactions contemplated by this Agreement. 

3.6 Securities Offering Exemption 

(a) Purchaser is an “accredited investor” as defined in Rule 501(a)(3) under the Securities Act. 

(b) Purchaser understands that the Shares are being offered and sold to it in reliance on specific exemptions from the registration
requirements of United States federal and state securities laws and that Issuer is relying in part upon the truth and accuracy of, and Purchaser’s compliance with, the representations, warranties, agreements, acknowledgments and understandings
of Purchaser set forth herein in order to determine the availability of such exemptions and the eligibility of Purchaser to acquire the Shares without registration under the Securities Act. 

(c) Purchaser understands that its investment in the Shares involves risk. Purchaser (a) is able to fully bear the economic risk of an
investment in the Shares, (b) has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of the proposed investment in the Shares and (c) has had an opportunity to ask
questions of and receive answers from the officers of Issuer concerning the financial condition and business of Issuer and others matters related to an investment in the Shares. Neither such inquiries nor any other due diligence investigations
conducted by the Purchaser or its representatives shall modify, amend or affect Purchaser’s right to rely on Issuer’s representations and warranties contained in Article 2 above. Purchaser has sought such accounting, legal and tax advice
as it has considered necessary to make an informed investment decision with respect to its acquisition of the Shares. 
 (d) Purchaser is
not purchasing the Shares as a result of any advertisement, article, notice or other communication regarding the Shares published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or any
other general solicitation or general advertisement. 
 3.7 Legends. 

Purchaser understands that upon the original issuance thereof, and until such time as the same is no longer required under applicable
requirements of the Securities Act or applicable state securities Laws or the Articles of Incorporation, any certificates or other instruments representing the Shares, and any certificates or other instruments issued in exchange therefor or in
substitution thereof, shall bear customary legends referencing such restrictions on transferability and the legend set forth in Article IX, Section E of the Articles of Incorporation, and that Issuer shall make a notation on its records and give
instructions to Issuer’s transfer agent in order to implement the restrictions on transfer set forth and described herein. 

  
 -11- 

 ARTICLE 4 DELIVERIES 

4.1 Deliveries of Issuer. In addition to evidence of issuance of the Shares contemplated by Section 1.4, on the date hereof,
Issuer has delivered to Purchaser the following: 
 (a) copies of all authorizations, Orders or Consents of any Governmental Body
required to consummate the issuance and sale of the Shares to Purchaser and the issuance and sale of the IRSA Exchange Shares and the IRSA Promissory Note to IRSA; 

(b) a certificate of the Secretary or Assistant Secretary of Issuer containing a true and correct copy of the resolutions duly adopted by
Issuer’s Board of Directors, approving and authorizing this Agreement, the IRSA Exchange and the Redemption, which certificate also certifies that such resolutions have not been rescinded, revoked, modified, or otherwise affected and remain in
full force and effect; 
 (c) a certificate of incumbency of Issuer executed by the Secretary or Assistant Secretary of Issuer listing the
officers of Issuer authorized to execute the Agreement and the Ancillary Agreements, which certificate also certifies as to the authority of each such officer to execute the agreements, documents, and instruments on behalf of Issuer in connection
with the consummation of the transactions contemplated hereby and thereby; 
 (d) (i) a copy of the Articles of Incorporation of Issuer,
certified as of a recent date by the Maryland Division of Assessments and Taxation, and a copy of the bylaws of Issuer, certified as of the date hereof by the Secretary or Assistant Secretary of Issuer; (ii) copies of the articles of
incorporation or similar organizational document, as amended, of each Significant Subsidiary, certified as of a recent date by the Secretary of State of the state under the Laws of which the Significant Subsidiary is incorporated or organized, and
copies of the code of regulations, bylaws, or similar operating document of each Significant Subsidiary, as amended, certified as of the date hereof by the Secretary or Assistant Secretary of the Significant Subsidiary; and (iii) certificates
of status, good standing or existence with respect to Issuer and each Significant Subsidiary from the Secretary of State of the state under the Laws of which Issuer or such Significant Subsidiary is incorporated, organized, as applicable, and of
each other state in which Issuer is qualified or registered to do business, dated as of a recent date. 
 (e) a copy of the waiver
agreement, dated the date hereof (the “Waiver Agreement”), between Issuer and Purchaser, relating to the waiver by Issuer’s Board of Directors of the provisions of the Articles of Incorporation necessary to consummate the
issuance and sale of the Shares pursuant to this Agreement, the IRSA Exchange Shares and the IRSA Promissory Note pursuant to the IRSA Exchange Agreement and the Redemption, duly executed by Issuer; 

(f) the opinion of McGrath North Mullin & Kratz, PC LLO, counsel to Issuer, relating to specified corporate and legal matters; 

(g) the opinion of McGrath North Mullin & Kratz, PC LLO, counsel to Issuer, that commencing with its first taxable year through the
taxable year ended December 31, 2015, Issuer has been organized and has operated in conformity with the requirements for qualification and taxation as a REIT under the Code and that Issuer’s organization (taking into account the issuance
and sale of the Shares pursuant to this Agreement, the issuance and sale of the IRSA Exchange Shares pursuant to the IRSA Exchange Agreement and the Redemption) and present and proposed method of operation will enable it to continue to meet the
requirements for qualification and taxation as a REIT for its taxable year ending December 31, 2016 and thereafter (with customary exceptions, assumptions and qualifications and based upon customary representations); 

(h) a copy of the investor rights agreement, dated the date hereof (the “Investor Rights Agreement”), between Issuer and
Purchaser, addressing the respective rights of Purchaser to representation on Issuer’s Board of Directors and to the registration of the resale of the shares of Common Stock into which the Shares are convertible under the Securities Act, duly
executed by Issuer; 
 (i) a copy of the escrow agreement, dated the date hereof (the “Escrow Agreement”), among Issuer,
Purchaser and Wells Fargo Bank, N.A., as escrow agent (the “Escrow Agent”), providing for deposit of the Redemption Escrow Amount into an account (the “Escrow Account”) maintained pursuant to the Escrow Agreement
(as defined herein), with such amount to be released in connection with the satisfaction of Issuer’s obligations pursuant to the Redemption, duly executed by Issuer and the Escrow Agent; 

  
 -12- 

 (j) evidence satisfactory to Purchaser that Issuer’s Board of Directors shall have approved
the appointment of three directors identified by Purchaser and reasonably satisfactory to Issuer, to fill vacancies on Issue’s Board of Directors, and shall have expanded Issuer’s Board of Directors if necessary to create such vacancies,
which appointments and expansion shall be effective on the date hereof; 
 (k) a copy of the IRSA Exchange Agreement duly executed by Issuer
and IRSA, together with evidence satisfactory to Purchaser that the IRSA Exchange has been consummated in accordance with the terms of the IRSA Exchange Agreement; and 

(l) duly executed notices of redemption relating to the Redemption of the Series A Stock and Series B Stock, respectively, which Redemption
shall be effective no later than 34 days after the date hereof. 
 4.2 Deliveries of Purchaser. In addition to delivery of the
aggregate Purchase Price to the Escrow Agent as contemplated by Section 1.3, on the date hereof, Purchaser has delivered to Issuer the following: 

(a) a copy of the Investor Rights Agreement, duly executed by Purchaser; 

(b) a copy of the Escrow Agreement, duly executed by Purchaser. 

ARTICLE 5 CONFIDENTIALITY; PUBLIC ANNOUNCEMENTS 

5.1 Confidentiality. 

The Information has been disclosed to Purchaser solely for Purchaser’s use in completing its analysis incidental to this Agreement, and
Purchaser agrees that its use of the Information shall be governed by the terms and conditions of the Confidentiality Agreement. 
 5.2
Public Announcements. 
 Issuer and Purchaser shall consult with each other before issuing any press releases or otherwise making any
public statements or filings with any Governmental Body with respect to this Agreement or the transactions contemplated hereby, shall modify any portion thereof if the other Party reasonably objects thereto, and shall not issue any press releases or
make any public statements or filings with any Governmental Body prior to such consultation, unless the same may be required by applicable Law or the rules and regulations of The NASDAQ Stock Market. For the avoidance of doubt, Issuer shall be
required to consult with Purchaser before disclosing or describing this Agreement or transactions contemplated hereby in (a) filings with the Commission, including disclosures or descriptions contained in any Current Report on Form 8-K
announcing the entry into this Agreement, or (b) scripted conference calls specifically designed to discuss this Agreement or the transactions contemplated hereby or analyst conference or meetings. 

ARTICLE 6 GENERAL PROVISIONS 

6.1 Definitions. 
 (a)
The terms set forth below shall have the meanings ascribed thereto in the referenced sections: 
  

			
	 Term
	  	Section
	 Agreement
	  	Initial Paragraph
	 Commission
	  	Recitals
	 Common Stock
	  	2.1
	 Defects
	  	2.18
	 Escrow Account
	  	4.1(i)
	 Escrow Agent
	  	4.1(i)
	 Escrow Agreement
	  	4.1(i)
	 Investor Rights Agreement
	  	4.1(h)

  
 -13- 

			
	 Term
	  	Section
	 IRSA
	  	Recitals
	 IRSA Exchange
	  	Recitals
	 IRSA Exchange Agreement
	  	Recitals
	 IRSA Exchange Shares
	  	Recitals
	 Issuer
	  	Initial Paragraph
	 Management Companies
	  	2.25
	 Material Adverse Change
	  	2.3
	 Material Adverse Effect
	  	2.3
	 Preferred Stock
	  	2.8(a)
	 Purchase Price
	  	1.2
	 Purchaser
	  	Initial Paragraph
	 Redemption
	  	Recitals
	 Redemption Escrow Amount
	  	1.3(a)
	 REIT
	  	2.14
	 Securities Act
	  	Recitals
	 Series A Stock
	  	2.8(a)
	 Series B Stock
	  	2.8(a)
	 Series C Stock
	  	2.8(a)
	 Shares
	  	Recitals
	 Significant Subsidiary
	  	2.7
	 Waiver Agreement
	  	4.1(e)

 (b) Except as otherwise provided herein, the capitalized terms set forth below shall have the following
meanings: 
 (i) “Ancillary Agreements” means the Waiver Agreement, the Investor Rights Agreement, the
Escrow Agreement and the IRSA Exchange Agreement. 
 (ii) “Articles of Incorporation” means Issuer’s
Amended and Restated Articles of Incorporation, as amended July 15, 2015. 
 (iii) “Beneficial
Ownership” shall have the meaning ascribed to it in Issuer’s Articles of Incorporation. The terms “Beneficial Owner,” “Beneficially Own,” and “Beneficially Owned” shall have the
correlative meanings. 
 (iv) “Books and Records” means all existing data, databases, books, records,
correspondence, business plans and projections, tenant and vendor lists, files and papers. 
 (v) “Business
Day” means any day on which national banks are open for business in the City of New York. 
 (vi)
“Code” means the Internal Revenue Code of 1986, as amended, together with the rules and regulations promulgated thereunder. 

(vii) “Confidentiality Agreement” means the Master Confidentiality Agreement, dated September 29, 2015,
between StepStone Group Real Estate LP and Issuer. 
 (viii) “Consent” means any consent, approval,
authorization, clearance, exception, waiver or similar affirmation by any Person required pursuant to any contract, Law, Order or Permit. 

(ix) “Employees” means all employees of Issuer or any Subsidiary of Issuer. 

(x) “Environmental Law” means any and all statutes, codes, laws (including common law), ordinances, agency
rules, regulations, and reporting or licensing requirements relating to pollution or protection of human health (with respect to exposure to Hazardous Materials) or the environment (including ambient air, surface water, ground water, land surface,
or subsurface strata), or emissions, 

  
 -14- 

 
discharges, releases, or threatened releases of, or the manufacture, processing, distribution, use, treatment, storage, disposal, transport, or handling of, any Hazardous Material, including,
(A) the Comprehensive Environmental Response Compensation and Liability Act, 42 U.S.C. §§9601 et seq.; (B) the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act, as amended, 42 U.S.C.
§§6901 et seq.; (C) the Emergency Planning and Community Right to Know Act (42 U.S.C. §§11001 et seq.); (D) the Clean Air Act (42 U.S.C. §§ 7401 et seq.); (E) the Clean Water Act (33 U.S.C. §1251 et
seq.); (F) the Toxic Substances Control Act (15 U.S.C. §2601 et seq.); (G) the Hazardous Materials Transportation Act (49 U.S.C. §§ 5101 et seq.); (H) the Safe Drinking Water Act (41 U.S.C. §300f et seq.);
(I) any state, county, municipal or local Laws similar or analogous to the federal Laws listed in parts (A)-(H) of this subparagraph, (J) any amendments to the Laws listed in parts (A)-(I) of this subparagraph, and (K) any
Laws or Orders adopted pursuant to or implementing the Laws listed in parts (A)-(J) of this subparagraph. 
 (xi)
“Environmental Permits” means Permits, Licenses, approvals, Consents, Orders, and authorizations which are required under Environmental Laws in connection with Issuer’s operations and business or the ownership, use, or lease of
Issuer’s assets or properties. 
 (xii) “EPA” means the United States Environmental Protection Agency.

 (xiii) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 

(xiv) “Executive Officer” means, with respect to Issuer, any “officer” (as such term is defined in
Rule 16a-1(f) under the Exchange Act) of Issuer. 
 (xv) “GAAP” means generally accepted accounting
principles as employed in the United States of America, applied consistently with prior periods and with Issuer’s historical practices and methods, provided that standards of materiality applicable to Issuer shall be employed without regard to
standards of materiality used by Issuer in prior periods, and provided further, that Issuer’s historical practices and methods shall not be consistently applied to the extent they are not in accordance with GAAP. 

(xvi) “Governmental Body” means any government or governmental entity or political subdivision thereof,
whether federal, state, local or foreign, or any agency, instrumentality or authority thereof, or any court or arbitrator (public or private). 

(xvii) “Hazardous Materials” means (A) any hazardous substance, hazardous material, hazardous waste,
regulated substance, or toxic substance (as those terms are defined by any applicable Environmental Laws) and (B) any chemicals, pollutants, contaminants, petroleum, petroleum products, or oil, asbestos-containing materials and any
polychlorinated biphenyls. 
 (xviii) “Information” means information or documentation owned by Issuer which
information may include, but is not necessarily limited to, financial data, business plans, personnel information (to the extent permitted under applicable Law), drawings, samples, devices, trade secrets, technical information, results of research
and other data in either oral or written form; provided, however, that “Information” does not include information which (A) is or becomes generally available to the public other than as a result of a disclosure by Purchaser or its
representatives, (B) was lawfully within Purchaser’s possession prior to its being furnished to Purchaser by or on behalf of Issuer, provided further that the source of such information was not known by Purchaser to be bound by a
confidentiality agreement with or other contractual, legal or fiduciary obligation of confidentiality to Issuer or any other Person with respect to such information, or (C) is developed by Purchaser after initial disclosure by Issuer. 

(xix) “IRS” means the Internal Revenue Service of the United States of America. 

(xx) “IRSA Registration Rights Agreement” means the Registration Rights Agreement, dated as of
February 1, 2012, among Real Estate Strategies L.P., IRSA and Issuer. 
 (xxi) “Law” means any code,
directive, law (including common law), ordinance, regulation, reporting or licensing requirement, rule, or statute, including those promulgated, interpreted, or enforced by any Governmental Body. 

  
 -15- 

 (xxii) “Liability” means any direct or indirect, primary or
secondary, liability, indebtedness, obligation, penalty, cost or expense (including costs of investigation, collection and defense), claim, deficiency, guaranty or endorsement of or by any Person (other than endorsements of notes, bills, checks, and
drafts presented for collection or deposit in the Ordinary Course of Business) of any type, secured or unsecured whether accrued, absolute or contingent, direct or indirect, liquidated or unliquidated, matured or unmatured, known or unknown or
otherwise. 
 (xxiii) “License” means any license, franchise, notice, permit, easement, right, certificate,
authorization, or approval to which any Person is a party or that is or may be binding on any Person or its securities, property or business. 

(xxiv) “Lien” means any conditional sale agreement, default of title, easement, encroachment, encumbrance,
hypothecation, lien, mortgage, pledge, reservation, restriction, right of way, security interest, title retention or other security arrangement, on, or with respect to any property or property interest. 

(xxv) “Litigation” means any suit, action, administrative or other audit (other than regular audits of
financial statements by outside auditors), proceeding, arbitration, cause of action, charge, claim, complaint, compliance review, criminal prosecution, grievance inquiry, hearing, inspection, investigation (governmental or otherwise), before any
Governmental Body. 
 (xxvi) “Order” means any decree, injunction, judgment, order, ruling, writ,
quasi-judicial decision or award or administrative decision or award of any federal, state, local, foreign or other court, arbitrator, mediator, tribunal, administrative agency or Governmental Body to which any Person is a party or that is or may be
binding on any Person or its securities, assets or business. 
 (xxvii) “Ordinary Course of Business” means
the following: an action taken by a Person shall be deemed to have been taken in the Ordinary Course of Business only if that action: (A) is consistent in nature, scope and magnitude with the past practices of such Person and is taken in the
ordinary course of the normal, day-to-day operations of such Person; and (B) does not require authorization by the shareholders of such Person (or by any Person or group of Persons exercising similar authority). 

(xxviii) “Party” means any party hereto and “Parties” means all parties hereto. 

(xxix) “Permit” means any Governmental Body approval, authorization, certificate, easement, filing, franchise,
license, notice, permit, or right to which any Person is a party or that is or may be binding upon or inure to the benefit of any Person or its securities, assets, or business. 

(xxx) “Person” means a natural person or any legal, commercial or governmental entity, such as, but not
limited to, a corporation, general partnership, joint venture, limited partnership, limited liability company, limited liability partnership, trust, business association, group acting in concert, or any person acting in a representative capacity.

 (xxxi) “Portfolio Properties” means the portfolio properties, including, without limitation, shopping
centers, residential properties, office buildings and business centers (including, without limitation, centers owned through unconsolidated joint ventures and other than are otherwise consolidated by Issuer) and undeveloped land described in the SEC
Reports as being owned by Issuer or its Subsidiaries. 
 (xxxii) “StepStone Group” means StepStone Group
Real Estate LP and its controlled affiliates. 
 (xxxiii) “Subsidiary” of a Person means any business entity
of which the Person either (A) owns or controls 50% or more of the outstanding equity securities, either directly or indirectly, (provided there shall not be included any such entity the equity securities of which are owned or controlled in a
fiduciary capacity), (B) in the case of partnerships, serves as a general partner, (C) in the case of a limited liability company, serves as a managing member, or (D) otherwise has the ability to elect a majority of the directors,
trustees, managing members or others thereof. 

  
 -16- 

 (xxxiv) “Tax” means any federal, state, county, local, or
foreign tax, charge, fee, levy, impost, duty, or other assessment, including income, gross receipts, excise, employment, sales, use, transfer, recording, License, payroll, franchise, severance, documentary, stamp, occupation, windfall profits,
environmental, federal highway use, commercial rent, customs duty, capital stock, paid-up capital, profits, withholding, Social Security, single business and unemployment, disability, real property, personal property, registration, ad valorem, value
added, alternative or add-on minimum, estimated, or other tax or governmental fee of any kind whatsoever, imposed or required to be withheld by any Governmental Body, including any interest, penalties, and additions imposed thereon or with respect
thereto, and including Liability for the taxes of any other Person under Treas. Reg. 1.1502-6 (or any similar provision of state, local, or foreign Law) as a transferee or successor, by contract, or otherwise. 

(xxxv) “Tax Return” means any return (including any informational return) report, statement, schedule, notice,
form or other document or information filed with or submitted to, or required to be filed with or submitted to any Taxing Authority in connection with the determination, assessment, collection or payment of any Tax or in connection with the
administration, implementation or enforcement of compliance with any legal requirement relating to any Tax. 
 (xxxvi)
“Taxing Authority” means the IRS and any other federal, state, local or foreign Governmental Body responsible for the administration of any Tax. 

(xxxvii) “Third Party” means any Person other than a Party. 

(xxxviii) “Undisclosed Liabilities” means any Liability that is not fully reflected or reserved against in
Issuer’s financial statements. 
 6.2 Fees and Expenses. 

Except as otherwise specifically provided below or elsewhere in this Agreement, regardless of whether the transactions contemplated by this
Agreement are consummated, Issuer and Purchaser each shall pay their respective fees and expenses in connection with the transactions contemplated by this Agreement. 

6.3 Notices. 
 All
notices, requests, demands, and other communications hereunder shall be in writing (which shall include communications by e-mail) and shall be delivered (a) in person or by courier or overnight service, or (b) by e-mail with a copy
delivered as provided in clause (a), as follows: 
 If to Issuer: 

1800 West Pasewalk Ave., Suite 200 

Norfolk, Nebraska 68701 

Attention: Chief Executive Officer 

Telephone: (402) 371-2520 

E-mail: bblackham@trustcondor.com 

with a copy (which shall not constitute notice) to: 

1800 West Pasewalk Ave., Suite 200 

Norfolk, Nebraska 68701 

Attention: Chief Financial Officer 

Telephone: (402) 371-2520 

E-mail: jgantt@trustcondor.com 

  
 -17- 

 Guy Lawson 

McGrath North Mullin & Kratz, PC LLO 

First National Tower, Suite 3700 

1601 Dodge Street 
 Omaha,
Nebraska 68102 
 Telephone: (402) 633-1402 

E-mail: glawson@mcgrathnorth.com 

If to Purchaser: 
 StepStone Group
Real Estate LP 
 150 California Street, Suite 850 

San Francisco, California 94111 

Attention: Brendan MacDonald / Jason Ment 

Telephone: (415) 318-7982 

E-mail: bmacdonald@stepstoneglobal.com; JMent@stepstoneglobal.com 

with a copy (which shall not constitute notice) to: 

Jones Day 
 77 W. Wacker Dr. 

Chicago, Illinois 60601 

Attention: Brad Brasser 

Telephone: (312) 269-4252 

E-mail: bcbrasser@jonesday.com 
 or to such other
address as the parties hereto may designate in writing to the other in accordance with this Section 6.3. Any Party may change the address to which notices are to be sent by giving written notice of such change of address to the other parties in
the manner above provided for giving notice. If delivered personally or by courier, the date on which the notice, request, instruction or document is delivered shall be the date on which such delivery is made and if delivered by e-mail transmission
or mail as aforesaid, the date on which such notice, request, instruction or document is received shall be the date of delivery. 
 6.4
Assignment 
 Any assignment under this Agreement by any of the Parties hereto shall be void, invalid and of no effect without the
written consent of the other Party; provided, however, that Purchaser may assign its rights under this Agreement, in whole or in part, to any Person who is a member of the StepStone Group so long as the assignee(s) agree to be bound in writing by
the terms and conditions of this Agreement; provided further that such assignment shall not prevent Issuer’s Board of Directors from issuing the waiver, does not cause Issuer to violate the 5/50 Rule or cause Issuer to not be “domestically
controlled” as defined in the Foreign Investment in Real Property Tax Act of 1980, as amended, and the rules and regulations thereunder. 

6.5 No Benefit to Others. 

The representations, warranties, covenants, and agreements contained in this Agreement are for the sole benefit of the Parties hereto and
their respective heirs, executors, administrators, legal representatives, successors and assigns, and they shall not be construed as conferring any Third Party beneficiary or any other rights on any other Persons. 

6.6 Headings and Gender; Construction; Interpretation. 

(a) The table of contents and the captions and section headings contained in this Agreement are for convenience of reference only, do not form
a part of this Agreement and shall not affect in any way the meaning or interpretation of this Agreement. All references in this Agreement to “Section” or “Article” shall be deemed to be references to a Section or Article of this
Agreement. 

  
 -18- 

 (b) Words used herein, regardless of the number and gender specifically used, shall be deemed and
construed to include any other number, singular or plural, and any other gender, masculine, feminine, or neuter, as the context requires. Whenever the words “include,” “includes” or “including” are used in this
Agreement, they shall be deemed followed by the words “without limitation.” 
 (c) Neither this Agreement nor any uncertainty or
ambiguity herein shall be construed or resolved against Purchaser or Issuer, whether under any rule of construction or otherwise. No Party to this Agreement shall be considered the draftsman. On the contrary, this Agreement has been reviewed,
negotiated and accepted by all Parties and their attorneys and shall be construed and interpreted according to the ordinary meaning of the words so as fairly to accomplish the purposes and intentions of all the Parties. 

6.7 Counterparts. 
 This
Agreement may be executed in two (2) or more counterparts, all of which shall be considered one and the same Agreement, and shall become effective when one counterpart has been signed by each Party and delivered to the other Party hereto. 

6.8 Integration of Agreement. 

(a) This Agreement and the exhibits and the other agreements contemplated by this Agreement, constitutes the entire agreement between the
Parties relating to the subject matter hereof and supersede all prior agreements, oral and written, between the Parties with respect to the subject matter hereof. 

(b) Neither this Agreement, nor any provision hereof, may be changed, waived, discharged, supplemented, or terminated orally, but only by an
agreement in writing signed by the Party against which the enforcement of such change, waiver, discharge or termination is sought. The failure or delay of any Party at any time or times to require performance of any provision of this Agreement shall
in no manner affect its right to enforce that provision. No single or partial waiver by any Party of any condition of this Agreement, or the breach of any term of this Agreement or the inaccuracy or warranty of this Agreement, whether by conduct or
otherwise, in any one or more instances shall be construed or deemed to be a further or continuing waiver of any such condition, breach or inaccuracy or a waiver of any other condition, breach or inaccuracy. 

6.9 Waiver. 
 The rights
and remedies of the Parties to this Agreement are cumulative and not alternative. Neither the failure nor any delay by any Party in exercising any right, power, or privilege under this Agreement shall operate as a waiver of such right, power, or
privilege, and no single or partial exercise of any such right, power or privilege shall preclude any other or further exercise of such right, power or privilege or the exercise of any other right, power, privilege. To the maximum extent permitted
by applicable Law, no claim or right arising out of this Agreement can be discharged by one Party, in whole or in part, by a waiver or renunciation of the claim or right unless in writing signed by the other Party; (b) no waiver that may be
given by a Party shall be applicable except in the specific instance for which it is given; and (c) no notice to or demand on one Party shall be deemed to be a waiver of any obligation of such Party or of the right of the Party giving such
notice or demand to take further action without notice or demand as provided in this Agreement. 
 6.10 Governing Law. 

Regardless of any conflict of law or choice of law principles that might otherwise apply, the Parties agree that this Agreement shall be
governed by and construed in all respects in accordance with the Laws of the State of New York. The Parties agree and acknowledge that the State of New York has a reasonable relationship to the Parties and/or this Agreement. As to any dispute or
Litigation arising out of or relating in any way to this Agreement or the transaction at issue in this Agreement, the Parties hereby agree and consent to be subject to the jurisdiction of the United States District Court for the Southern District of
New York. If jurisdiction is not present in federal court, then the Parties hereby agree and consent to the jurisdiction of the state courts of New York County, New York. Each Party hereby irrevocably waives, to the fullest extent permitted by Law,
(a) any objection that it may now or hereafter have to laying venue of any Litigation brought in such court, (b) any claim that any Litigation brought in such court has been brought in an inconvenient forum, and (c) any defense that
it may now or hereafter have based on lack of personal jurisdiction in such forum. 

  
 -19- 

 6.11 Partial Invalidity. 

Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable Law, but
in case any one or more of the provisions contained in this Agreement shall, for any reason, be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provisions of
this Agreement, and this Agreement shall be construed as if such invalid, illegal, or unenforceable provision or provisions had never been contained herein unless the deletion of such provision or provisions would result in such a material change as
to cause completion of the transactions contemplated hereby to be unreasonable. To the extent the deemed deletion of the invalid, illegal or unenforceable provision or provisions is reasonably likely to have a material adverse effect on the ability
of the Parties to consummate the transactions contemplated by this Agreement, the Parties shall endeavor in good faith to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as
practicable to that of the invalid, illegal or unenforceable provisions. 
 6.12 Survival. 

The representations, warranties, covenants and agreements made in this Agreement shall survive any investigation made by any party hereto and
the closing of the transactions contemplated hereby. 
 6.13 Specific Enforcement. 

The Parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in
accordance with their specific terms or were otherwise breached. The Parties accordingly agree that the Parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and
provisions of this Agreement, this being in addition to any other remedy to which they are entitled at law or in equity. 

  
 -20- 

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

  

			
	CONDOR HOSPITALITY TRUST, INC.
		
	By:	 	 /s/ J. William Blackham

	Name:	 	J. William Blackham
	Title:	 	President and CEO
	
	SREP III FLIGHT – INVESTCO, L.P.
		
	By:	 	 /s/ Jason Ment

	Name:	 	Jason Ment
	Title:	 	Partner and General Counsel

  
 -21- 

 Schedule I 

Supertel Hospitality REIT Trust (MD) 
 Supertel Limited
Partnership (VA) 
 SPPR-South Bend, LLC (DE) 
 CDOR San
Spring, LLC (DE) 
 SPPR-Hotels, LLC (DE) 
 SPPR-Dowell, LLC
(DE) 
 CDOR Jax Court, LLC (DE) 
 CDOR Atl Indy, LLC (DE)

 TRS Leasing, Inc. (VA)

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