Document:

Exhibit 10.23

    
      
        

      

    

    Exhibit
      10.23

     

    VIEWSONIC
      CORPORATION

    Long
      Term Incentive Program

    Summary
      of Terms

    

    
      	
              TERM

            	
              DESCRIPTION

            
	
              Objectives
                of the Long Term Incentive Program (the “Incentive
                Program”)

            	
              The
                objectives of the Incentive Program are to motivate the executive
                team of
                ViewSonic Corporation (the “Company”)
                to achieve key financial metrics and increase stockholder value as
                well as
                to enhance employee retention.

               

            
	
              Eligible
                Participants

            	
              Employees
                who are director level and above and who are designated by the
                Compensation Committee of the Company’s Board of Directors (the
                “Compensation
                Committee”)
                as participants under the Incentive Program (the “Eligible
                Participants”).

               

            
	
              Type
                of Award

            	
              A
                stock option (the “Performance
                Award”)
                to purchase the Company’s common stock under the Company’s 2004 Equity
                Incentive Plan (the “2004
                Plan”).

               

            
	
              Timing
                of Grant 

            	
              Anticipated
                to be in February 2007 (the “Grant
                Date”).

               

            
	
              Number
                of Shares Subject to the Performance Award

            	
              The
                number of shares subject to each Eligible Participant’s Performance Award
                shall be based on the Tiers indicated on Exhibit
                A
                hereto, into which each Eligible Participant shall be placed at the
                sole
                discretion of the Compensation Committee.

               

              On
                the Grant Date, Eligible Participants shall be granted the maximum
                number
                of options in which they could potentially vest under the Performance
                Award if 150% of the Performance Targets (as defined below) is achieved
                (the “Maximum
                Award”)
                (e.g.,
                for a Tier 1 Eligible Participant, an option to purchase 450,000
                shares of
                common stock would be granted on the Grant Date). The portion of
                the
                Performance Award in which an Eligible Participant could potentially
                vest
                if 100% of the Performance Targets (as defined below) is achieved
                is
                referred to as the “Target
                Award.”

               

            
	
              Performance
                Targets

            	
              The
                initial vesting of each Performance Award shall be based on the
                achievement of both a revenue target (the “Revenue
                Target”)
                and an income target (the “Income
                Target”)
                as set by the Compensation Committee (collectively, the “Performance
                Targets”),
                which shall be based on the Company’s financial performance for the fiscal
                year ending December 31, 2007. 

               

              The
                determination of whether the Performance Targets have been met shall
                be
                made by the Compensation Committee, in its sole discretion, after
                the
                completion of the Company’s audit for fiscal 2007 (the “Determination
                Date”).

               

            

    

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
      	
              TERM

            	
              DESCRIPTION

            
	
              Failure
                to Achieve the Minimum Performance Targets

            	
              Both
                the minimum Revenue Target and the minimum Income Target must be
                met for
                any vesting of the Performance Award to occur. If either the minimum
                Revenue Target or the minimum Income Target is not met, the Performance
                Award shall be automatically cancelled and forfeited in its
                entirety.

               

            
	
              Vesting
                of the Performance Award

            	
              If
                both of the minimum Performance Targets are met, the Performance
                Award
                shall vest as follows:

               

              The
                Target Award is first multiplied by the percentage of achievement
                of the
                Performance Targets as determined by the Compensation Committee (a
                range
                of between 100%-150% based on the levels achieved against both the
                Revenue
                and Income Targets as reflected on Exhibit
                B
                hereto) (the “Eligible
                Award”)
                and then divided by 3. This portion of the Eligible Award shall vest
                on
                the Determination Date. The difference between the Maximum Award
                and the
                Eligible Award, if any, shall be cancelled and forfeited on the
                Determination Date.

               

              The
                remainder of the Eligible Award shall vest 1/3 on the second anniversary
                of the Grant Date (the “Second
                Vesting Date”)
                and 1/3 on the third anniversary of the Grant Date (the “Third
                Vesting Date”).

               

              The
                vesting described above is subject to there being no break prior
                to the
                relevant date in the Eligible Participant’s “Continuous Service” to the
                Company as an employee as such term is defined in the 2004 Plan
                (“Service”).

               

            
	
              Termination
                of Service

            	
              If
                an Eligible Participant’s Service terminates for any reason (other than
                death) before the Determination Date, the Performance Award shall
                be
                cancelled and forfeited in its entirety.

               

              If
                an Eligible Participant’s Service terminates for any reason (other than
                death) after the Determination Date, the Eligible Award shall cease
                vesting, and any unvested portion of such Eligible Award shall be
                cancelled and forfeited in its entirety.

               

            
	
              Death
                of an Eligible Participant

            	
              If
                an Eligible Participant dies before the Determination Date, a portion
                of
                the Performance Award shall vest on such date of death as
                follows:

               

              The
                portion that shall vest is equal to the Target Award divided by 3,
                with
                such quotient multiplied by a fraction, the numerator of which is
                the
                aggregate number of full months of Service provided by the Eligible
                Participant from the Grant Date to the date of death and the denominator
                of which is 12.

               

              If
                an Eligible Participant dies after the Determination Date but before
                the
                Second Vesting Date or the Third Vesting Date, as applicable, the
                following portion of the Eligible Award shall vest on such date of
                death
                (in addition to the portion of the Eligible Award already vested
                as
                described above under “Vesting of the Performance Award”):

               

              One
                third (1⁄3) of the Eligible Award shall be multiplied by a fraction, the
                numerator of which is the aggregate number of full months of Service
                provided by the Eligible Participant from either (a) the first anniversary
                of the Grant Date to the date of death or (b) the second anniversary
                of
                the Grant Date to the date of death, as applicable, and the denominator
                of
                which is 12.

               

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	
              TERM

            	
              DESCRIPTION

            
	
              Change
                in Control

            	
              If
                the effective date of a Change in Control (as such term is defined
                under
                the 2004 Plan) (the “Effective
                Date”)
                occurs before the Determination Date, the Target Award shall vest
                on the
                Effective Date as follows:

               

              The
                portion that shall vest is equal to the Target Award divided by 3,
                with
                such quotient multiplied by a fraction, the numerator of which is
                the
                aggregate number of full months of Service provided by the Eligible
                Participant from the Grant Date to the Effective Date and the denominator
                of which is 12.

               

              If
                the Effective Date occurs after the Determination Date but before
                the
                Second Vesting Date or the Third Vesting Date, as applicable, the
                following portion of the Eligible Award shall vest on such date (in
                addition to the portion of the Eligible Award already vested as described
                above under “Vesting of the Performance Award”):

               

              One
                third (1⁄3) of the Eligible Award shall be multiplied by a fraction, the
                numerator of which is the aggregate number of full months of Service
                provided by the Eligible Participant from either (a) the first anniversary
                of the Grant Date to the Effective Date or (b) the second anniversary
                of
                the Grant Date to the Effective Date, as applicable, and the denominator
                of which is 12.

               

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	
              TERM

            	
              DESCRIPTION

            
	
              Compensation
                Committee

            	
              The
                Compensation Committee shall be the administrator of the Incentive
                Program
                and shall be entitled to the amend the Incentive Program, subject
                to the
                limitations set forth in the 2004 Plan.

               

            
	
              Non-Binding;
                Governing Plan

            	
              This
                Summary of Terms is non-binding and is only intended to be summary
                of the
                Incentive Program. It does not constitute an employment contract
                nor does
                it represent the grant of a Performance Award or any entitlement
                thereto.
                Each individual Performance Award granted by the Compensation Committee
                shall be governed by the applicable Grant Notice, the Stock Option
                Agreement and the 2004 Plan.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

     

    
      	
              LEVEL
                OF ELIGIBLE PARTICIPANT

            	
              TARGET
                AWARD

            	
              MAXIMUM
                AWARD

            
	
               

              Tier
                1

               

            	
              300,000
                shares

            	
              450,000
                shares

            
	
               

              Tier
                2

               

            	
              150,000
                shares

            	
              225,000
                shares

            
	
               

              Tier
                3 

               

            	
              100,000
                shares

            	
              150,000
                shares

            
	
               

              Director
                levels

            	
              To
                be determined

            	
              To
                be determined

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B

    

    PERFORMANCE
      TARGETS

    

    Performance
      Award As a Percentage of the Performance Targets

    
       

      
        
          		
                  125.0%

                	
                  131.3%

                	
                  137.5%

                	
                  143.8%

                	
                  150.0%

                
	
                  118.8%

                	
                  125.0%

                	
                  131.3%

                	
                  137.5%

                	
                  143.8%

                
	
                  112.5%

                	
                  118.8%

                	
                  125.0%

                	
                  131.3%

                	
                  137.5%

                
	
                  106.3%

                	
                  112.5%

                	
                  118.8%

                	
                  125.0%

                	
                  131.3%

                
	
                  100.0%

                	
                  106.3%

                	
                  112.5%

                	
                  118.8%

                	
                  125.0%

                

        

        
          	 	
                   

                  Net
                    IncomeExhibit 10.1

    
      

      

    

    AMENDED
      AND RESTATED

    
      PURCHASE
        AND SALE AGREEMENT

       

      dated
        as
        of February 1, 2007 between

      

       

      BCM,
        LLC

       

      and

       

      HPS
        Seaport, LLC

       

      as
        Sellers,

       

      

      and

       

      

      SEAPORT
        HOSPITALITY, LLC as Purchaser

      

      

      IN
        CONNECTION WITH THE SALE AND PURCHASE OF 

       

      

      Hampton
        Inn Seaport

      320
        Pearl
        Street, New
        York, New York 10038

      

      
        

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      PURCHASE
        AND SALE AGREEMENT

      

      This
        PURCHASE AND SALE AGREEMENT, dated as of the 1st
        day of
        February, 2007, (the “Agreement”) between
        BCM, LLC,
        a New
        York limited liability company (“Seller”), HPS Seaport, LLC, a New York limited
        liability company (“Seller”), and
        SEAPORT HOSPITALITY, LLC,
        a New
        York limited liability company, and its assignee or designee (collectively
        “Purchaser”), provides:

      

      ARTICLE
        1

      

      DEFINITIONS;
        RULES OF CONSTRUCTION

      

      
        	
                1.1

              	
                Definitions.
                  The following terms shall have the indicated
                  meanings:

              

      

      

      “Act
        of Bankruptcy”
shall
        mean if a party hereto shall (a) apply for or consent to the appointment
        of, or the taking of possession by, a receiver, custodian, trustee or liquidator
        of itself or of all or a substantial part of its property, (b) admit in
        writing its inability to pay its debts as they become due, (c) make a
        general assignment for the benefit of its creditors, (d) file a voluntary
        petition or commence a voluntary case or proceeding under the Federal Bankruptcy
        Code (as now or hereafter in effect), (e) be adjudicated a bankrupt or
        insolvent, (f) file a petition seeking to take advantage of any other law
        relating to bankruptcy, insolvency, reorganization, winding-up or composition
        or
        adjustment of debts, (g) fail to controvert in a timely and appropriate
        manner, or acquiesce in writing to, any petition filed against it in an
        involuntary case or proceeding under the Federal Bankruptcy Code (as now
        or
        hereafter in effect), or (h) take any action for the purpose of effecting
        any of the foregoing; or if a proceeding or case shall be commenced, without
        the
        application or consent of a party hereto in any court of competent jurisdiction
        seeking (1) the liquidation, reorganization, dissolution or winding-up, or
        the composition or readjustment of debts, of such party , (2) the
        appointment of a receiver, custodian, trustee or liquidator for such party
        or
        all or any substantial part of its assets, or (3) other similar relief
        under any law relating to bankruptcy, insolvency, reorganization, winding-up
        or
        composition or adjustment of debts, and such proceeding or case shall continue
        undismissed; or an order (including an order for relief entered in an
        involuntary case under the Federal Bankruptcy Code, as now or hereafter in
        effect) judgment or decree approving or ordering any of the foregoing shall
        be
        entered and continue unstayed and in effect, for a period of 60 consecutive
        days.

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Agreement
        Date”
shall
        mean the date first written above in the preamble of this Agreement conditioned
        upon the receipt of the Net Income data required pursuant to Section 2.2(h)
        hereinunder.

      

      “Apportionment
        Date”
shall
        mean the day immediately preceding the Closing Date.

      

      “Assignment
        and Assumption Agreement”
shall
        mean that certain Assignment and Assumption Agreement, dated as of the Closing
        Date by and between Seller and Purchaser, whereby Seller assigns and Purchaser
        assumes all of Seller’s right, title and interest in, to and under all licenses,
        contracts, leases, permits and agreements affecting the Property that Purchaser
        has expressly agreed to assume in writing on or before the Closing Date.
        

      

      “Authorizations”
shall
        mean all licenses (including, without limitation, the beer and wine license
        for
        the Hotel, if any), permits and approvals required by any governmental or
        quasi-governmental agency, body or officer for the ownership, operation and
        use
        of the Property or any part thereof.

      

      “Brand”
shall
        mean Hampton Inn.

      

      “Closing”
shall
        mean the closing of the sale and acquisition of the Property pursuant to
        this
        Agreement.

      

      “Closing
        Date”
shall
        mean the date on which the Closing occurs.

      

      “Consideration”
shall
        mean Twenty Seven Million, Six Hundred Twenty Five Thousand Dollars
        ($27,625,000).

      

      “Contract
        Period”
shall
        mean the period commencing on the Agreement Date and ending on the Closing
        Date.

      

      “Employees”
shall
        mean the personnel employed to operate the Hotel.

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      “Employment
        Agreements”
shall
        mean any and all employment agreements, written or oral, between the Seller
        or
        its managing agent and any Employee.

      

      “Escrow
        Agent”
shall
        mean Summit Associates, 100 Lafayette Street, Third Floor, New York, New
        York
        10013.

      

      

      “Excluded
        Assets”
shall
        mean:

      

      (a) all
        cash,
        bank accounts and money invested with financial institutions and other liquid
        assets of the Seller;

      

      (b)
        any
        interest in and to any refund of Taxes of the Seller for any period and any
        interest in and to any refund of Taxes relating to the Hotel or its operations,
        prior to the Closing;

      

      (c)
        all
        credits, claims for refund, prepaid expenses, deferred charges, escrow accounts,
        advance payments, security or other deposits, including recoverable deposits,
        and prepaid items (and, in each case, security interests relating thereto)
        arising from or in connection with, or related to, the Hotel, its contracts
        or
        assets;

      

      (d)
        all
        claims or rights against any Person of the Seller arising prior to Closing
        date;

      

      (e)
        all
        insurance policies owned by the Seller and all rights, claims, proceeds and
        causes of action of the Seller under insurance policies and all rights in
        the
        nature of insurance, indemnification or contribution relating to the Seller
        or
        its property, except as otherwise provided in this Agreement;

      

      (f)
        all
        of
        Seller’s rights under this Agreement and any other agreement to sell assets of
        the Seller now existing or in the future and all cash and non-cash consideration
        payable or deliverable to Seller pursuant to the terms and provisions hereof
        and
        thereof;

      

      (g)
        Seller’s
        interest in any Lease or Operating Agreement that is not assumable by Purchaser
        or that Purchaser elects not to assume;

      

      (h)
        all
        items
        listed on Exhibit G; 

      

      (i)
        Seller’s
        interest in any Employment Agreements; 

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      

      (j)
        any
        balances in Lender retained escrows for taxes, insurance, FF&E Reserve and
        other funds held by Lender; and

      

      (k)
        all
        books
        and records of the Seller that do not relate primarily to the Hotel, financial
        statements, and accounting ledgers, records, and work-papers.

      

      “Existing
        Financing”
shall
        mean, collectively, that certain financing by and among Seller and lender(s)
        with existing mortgage(s) on the Property. Such Existing Financing shall
        be
        assumed in full by Purchaser at Closing. The Existing Financing on the property
        is projected to total $19,250,000.00.

      

      “Existing
        Franchise License”
shall
        mean the existing Franchise License, which is required under this Agreement
        to
        be maintained by Seller through the Closing Date.

      

      “FF&E”
shall
        mean all tangible property and fixtures (which are not part of the Real
        Property) of any kind owned by Seller and attached to or located upon and
        used
        in connection with the ownership, maintenance, use or operation of the Hotel
        as
        of the date hereof (or acquired by Seller and so employed prior to Closing),
        including, but not limited to, all furniture, fixtures, equipment, signs;
        all
        heating, lighting, plumbing, drainage, electrical, air conditioning, and
        other
        mechanical fixtures and equipment and systems; all copy machines, computers,
        software, facsimile machines and other office equipment; all elevators,
        escalators, and related motors and electrical equipment and systems; all
        hot
        water heaters, furnaces, heating controls, motors and boiler pressure systems
        and equipment; all shelving and partitions; all ventilating equipment, and
        all
        incinerating and disposal equipment; all tennis, pool and health club and
        fitness equipment and furnishings; all vans, automobiles and other motor
        vehicles; all carpets, drapes, beds, furniture, furnishings, televisions,
        telephones and similar property; all stoves, ovens, freezers, refrigerators,
        dishwashers, disposals, kitchen equipment and utensils, tables, chairs, plates
        and other dishes, glasses, silverware, serving pieces and other restaurant
        and
        bar equipment, apparatus and utensils; all audiovisual equipment, banquet
        equipment and laundry equipment; exclusive of (a) any personal property leased
        under the Operating Agreements, (b) items belonging to Hotel guests and tenants
        under the rooms agreements, and (c) the items, if any, listed on Exhibit G,
        which Exhibit shall be provided to Purchaser by Seller within fifteen (15)
        business days of the Agreement Date and attached hereto.

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      FIRPTA
        Certificate”
shall
        mean the affidavit of the Seller under Section 1445 of the Internal Revenue
        Code certifying that Seller is not a foreign corporation, foreign Seller,
        foreign limited liability company, foreign trust, foreign estate or foreign
        person (as those terms are defined in the Internal Revenue Code and the Income
        Tax Regulations), in form and substance satisfactory to the Purchaser.

      

      “Franchise
        License”
shall
        mean the license granted by the Franchisor enabling the Hotel to operate
        under
        the Brand. 

      

      “Franchisor”
shall
        mean
        Promus Hotels, Inc.

      

      “Governmental
        Body”
means
        any federal, state, municipal or other governmental department, commission,
        board, bureau, agency or instrumentality, domestic or foreign.

      

      “Hotel”
shall
        mean the 65-room hotel and related amenities located on the Land and operating
        under the Brand.

      

      “House
        Banks”
shall
        mean petty cash funds and cashiers’ banks.

      

      “Improvements”
shall
        mean the Hotel and all other buildings, improvements, fixtures and other
        items
        of real estate located on the Land.

      

      “Insurance
        Policies”
shall
        mean those certain policies of insurance described on Exhibit C
        attached
        hereto.

      

      “Intangible
        Personal Property”
shall
        mean all intangible personal property owned or possessed by the Seller and
        used
        in connection with the ownership, operation, leasing, occupancy or maintenance
        of the Property (other than the Excluded Assets and the License), including,
        without limitation, the Authorizations (to the extent transferable), Seller’s
        interest in any Leases that Purchaser has agreed to assume, Seller’s interest in
        any Operating Agreements that Purchaser has agreed to assume, Seller’s interest
        in any construction, equipment, service or other types of guarantees and
        warranties, general intangibles, business records, plans and specifications,
        surveys pertaining to the real property, all other licenses which are
        transferable, permits and approvals with respect to the construction, ownership,
        operation, leasing, occupancy or maintenance of the Property, any unpaid
        award
        for taking by condemnation or any damage to the Land by reason of a change
        of
        grade or location of or access to any street or highway, excluding (a) the
        Excluded Assets which shall be maintained and/or distributed to Seller prior
        to
        the Closing Date and (b) any of the aforesaid rights the Purchaser elects
        not to acquire. 

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      

      “Inventory”
or
        “Inventories”
shall
        mean all inventories of supplies of any kind owned by the Seller and used
        in the
        operation of the Hotel (irrespective of whether such are located on the premises
        or stored off premises), including without limitation, all mattresses, pillows,
        bed linens, towels, paper goods, soaps, cleaning supplies, foodstuff, beverage
        inventories, utensils, and other such supplies.

      

      “Knowledge”
shall
        mean the actual knowledge of Bharat C. Mehta and Hasu P. Shah.

      

      “Land”
shall
        mean that certain portion of the Site that contains those Improvements necessary
        for the existing operation of the Hotel.

      

      “Leases”
shall
        mean those leases of real property listed on Exhibit D
        attached
        hereto.

      

      “Net
        Income”
shall
        mean hotel operating revenues, less hotel operating expenses (excluding reserve
        contributions), less interest payments, less income taxes, less depreciation,
        less amortization. 

      

      “New
        Franchise License”
shall
        mean the Franchise License that Purchaser or its affiliate shall enter into
        with
        Franchisor as a condition to Closing.

      

      “Note
        Payable”
        shall
        mean a legally enforceable promise by the Purchaser to the Seller to pay
        a
        certain amount of money in United States currency.

      

      “Operating
        Agreements”
shall
        mean the service contracts, supply contracts, Space Leases, leases (other
        than
        the Leases) and other agreements, if any, in effect with respect to the
        construction, ownership, operation, occupancy or maintenance of the Property.
        All of the Operating Agreements in force and effect as of the date hereof
        are
        listed on Exhibit E
        attached
        hereto.

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      

      “Permitted
        Title Exceptions”
shall
        mean those exceptions to title to the Real Property waived by the Purchaser
        under Section 2.2(c)(x) and as set forth on Exhibit J and are deemed
        satisfactory to the Purchaser.

      

      “Pre-Closing
        Period”
shall
        mean the period commencing on the Agreement Date through the earlier of
        (i) the Closing Date or (ii) the date of termination of this Agreement
        in accordance with the terms of this Agreement.

      

      “Property”
shall
        mean collectively the Land, Improvements, the Inventory, Systems, the Tangible
        Personal Property and the Intangible Personal Property.

      

      “Purchaser”
        shall
        mean SEAPORT HOSPITALITY, LLC and its assignee or designee.

      

      “Real
        Property”
shall
        mean the Land and the Improvements.

      

      “Seller”
        shall
        mean both BCM, LLC and HPS Seaport, LLC individually as well as collectively,
        unless otherwise stated.

      

      “Site”
shall
        mean that certain parcel of real estate lying and being in the County of
        New
        York and located at 320 Pearl Street, New York, NY 10038 as more particularly
        described on Exhibit A
        attached
        hereto, together with all easements, rights, privileges, remainders, reversions
        and appurtenances thereunto belonging or in any way appertaining, and all
        of the
        estate, right, title, interest, claim or demand whatsoever of the Seller
        therein, in the streets and ways adjacent thereto and in the beds thereof,
        either at law or in equity, in possession or expectancy, now or hereafter
        acquired.

      

      “Space
        Lease”
shall
        mean a lease with a term in excess of 30 days between Seller and a third
        party
        for any portion of the premises that is used by the lessee for purposes other
        than those necessary for the operations of a hotel. Examples of such uses
        include a gift shop or rental car agency. A guestroom or meeting space rented
        to
        a third party shall only be considered subject to a Space Lease if the guestroom
        or meeting space in question is being used for a purpose other than its intended
        use as a guestroom or meeting space (for example, if the space is being used
        as
        office space).

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      

      “Systems”
shall
        mean, without limitation, the equipment, supplies, licenses and software
        required to operate the Franchise Licensor’s reservation system, the property
        management system, point-of-sales system, telephone system, wireless or cabled
        internet service system, back office system, fire-life safety system,
        surveillance system, time clock system and other systems used in the marketing
        or operations of the hotel, all of which include requisite cabling, user
        manuals, warranty certificates, software and any written and any electronic
        books and records produced by the Systems. Systems shall not include Seller’s
        interest in any Operating Agreements applicable to a particular system that
        is
        not assumable or that the Seller has not agreed to assume.

      

      “Tangible
        Personal Property”
shall
        mean the all tangible items of personal Property, other than the Excluded
        Assets, used in or requisite to the operations of the Hotel, including, but
        not
        limited to all FF&E situated on, attached to, or used in the operation of
        the Hotel.

      

      “Target
        Closing Date”
shall
        mean the date set forth in Section 6.1.

      

      “Termination
        Fee”
shall
        have the meaning set forth in Section 6.1(c) of this Agreement.

      

      “Title
        Commitment”
shall
        mean the commitment by the Title Company to issue the Title Policy.

      

      “Title
        Company”
shall
        mean Summit Associates, 100 Lafayette Street, Third Floor, New York, New
        York
        10013, as agent for First American.

      

      “Title
        Policy”
shall
        mean a policy of title insurance with appropriate endorsements issued to
        the
        Purchaser by the Title Company, dated as of the Closing Date, pursuant to
        which
        the Title Company insures the Purchaser’s ownership of fee simple title to the
        Real Property (including the marketability thereof) subject only to Permitted
        Title Exceptions. The Title Policy shall insure the Purchaser in the amount
        of
        the Consideration and shall be reasonably acceptable in form and substance
        to
        the Purchaser. 

      

      “Utilities”
shall
        mean public sanitary and storm sewers, natural gas, telephone, public water
        facilities, electrical facilities and all other utility facilities and services
        necessary for the operation and occupancy of the Property as a
        hotel.

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      

      
        	
                1.2

              	
                Rules
                  of Construction.
                  The following rules shall apply to the construction and interpretation
                  of
                  this Agreement:

              

      

      

      
        	 	
                (a)

              	
                Singular
                  words shall connote the plural number as well as the singular and
                  vice
                  versa, and the masculine shall include the feminine and the
                  neuter.

              

      

      

      
        	 	
                (b)

              	
                All
                  references herein to particular articles, sections, subsections,
                  clauses
                  or exhibits are references to articles, sections, subsections,
                  clauses or
                  exhibits of this Agreement.

              

      

      

      
        	 	
                (c)

              	
                Headings
                  contained herein are solely for convenience of reference and shall
                  not
                  constitute a part of this Agreement nor shall they affect its meaning,
                  construction or effect.

              

      

      

      
        	 	
                (d)

              	
                Each
                  party hereto and its counsel have reviewed and revised (or requested
                  revisions of) this Agreement, and therefore any usual rules of
                  construction requiring that ambiguities are to be resolved against
                  a
                  particular party shall not be applicable in the construction and
                  interpretation of this Agreement or any exhibits
                  hereto.

              

      

      

      
        	 	
                (e)

              	
                Any
                  reference to a “business day” shall mean Monday through Friday, United
                  States federal and bank holidays
                  excepted.

              

      

      

      
        	 	
                (f)

              	
                Wherever
                  the word “including” is used in this Agreement, it shall be deemed to be
                  followed by the words “without
                  limitation”.

              

      

      

      
        	 	
                (g)

              	
                All
                  times designated in this Agreement shall refer to Eastern Daylight
                  Time or
                  Eastern Standard Time, as
                  applicable.

              

      

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      

      ARTICLE
        2

      PURCHASE
        AND SALE; 

      PAYMENT
        OF CONSIDERATION

      

      
        	
                2.1

              	
                Purchase
                  and Sale.
                  In consideration of the payment of the Consideration by Purchaser
                  to
                  Seller, other good and valuable consideration received by each
                  of the
                  parties hereto, and intending to be legally bound hereby, Seller
                  agrees to
                  sell, assign and transfer the Property to Purchaser and Purchaser
                  agrees
                  to purchase the Property, in accordance with the terms and conditions
                  set
                  forth herein. A complete list of the actual amounts due each individual
                  Seller after applying a credit against assumption of existing financing
                  is
                  attached hereto as Exhibit
                  K for BCM, LLC and Exhibit L for HPS Seaport, LLC.
                   

              

      

      

      
        	 	
                (a)

              	
                The
                  Consideration shall be paid as follows:

              

      

      

      
        	
              	(i)	
                Purchaser
                  shall receive a credit against assumption of existing financing.
                  This
                  credit is projected to be
                  $19,250,000.00.

              

      

      

      
        	 	
                (b)

              	
                After
                  taking into account any applicable adjustments pursuant to Section
                  6.1
                  below, the balance of the Consideration shall be paid by the Purchaser
                  as
                  follows:

              

      

      

      
        	 	
                (i)

              	
                Ninety-Eight
                  percent (98%) of the balance due shall be payable by Purchaser
                  to Seller
                  through issuance of a Note Payable. Payment of such Note Payable
                  must be
                  fulfilled by the Purchaser to the Seller either within seven (7)
                  calendar
                  days of Seller’s demand for payment, or if no such demand is made, then
                  the Note Payable shall be due one (1) year from its issuance. Purchaser
                  shall pay eight percent (8%) annual interest on the value of the
                  Note
                  Payable beginning on the Note Payable’s issuance date and ending on the
                  Note Payable’s payment date. 

              

      

      

      
        	 	
                (ii)

              	
                The
                  Purchaser shall pay to the Seller the remaining two percent (2%)
                  of the
                  balance due in limited partnership units of Hersha Hospitality
                  Limited
                  Partnership. The price of the limited partnership units shall be
                  $11.15
                  per unit as determined by utilizing the five day volume weighted
                  average
                  closing price for Priority Class A Common Stock of Hersha Hospitality
                  Trust for the five (5) trading days beginning on January 25th,
                  2007 and ending on January 31st,
                  2007. 

              

      

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      

      ARTICLE
        3

      SELLER’S
        REPRESENTATIONS, WARRANTIES AND COVENANTS

       

      To
        induce
        the Purchaser to enter into this Agreement and to purchase the Property,
        each
        Seller hereby makes the following representations, warranties and covenants,
        upon each of which Seller acknowledges and agrees that Purchaser is entitled
        to
        rely and has relied upon:

      

      
        	
                3.1

              	
                Identity
                  and Power.
                  

              

      

      

      
        	 	
                (a)

              	
                Each
                  Seller is and has all requisite powers and all governmental licenses,
                  authorizations, consents and approvals necessary to carry on its
                  business
                  as now conducted, to execute and deliver this Agreement and any
                  document
                  or instrument required to be executed and delivered on behalf of
                  the
                  Seller hereunder, to perform its obligations under this Agreement
                  and any
                  such other documents or instruments and to consummate the transactions
                  contemplated hereby; and

              

      

      

      
        	 	
                (b)

              	
                Each
                  Seller is a limited liability company duly organized, validly existing
                  and
                  in good standing under the laws of the State of New York, and has
                  all
                  requisite power and authority under the laws of such State and
                  under its
                  charter documents to conduct its business and enter into and perform
                  its
                  obligations under this Agreement and to consummate the transactions
                  contemplated hereby. 

              

      

      

      
        	
                3.2

              	
                Authorization,
                  No Violations and Notices.

              

      

      

      
        	 	
                (a)

              	
                The
                  execution, delivery and performance of this Agreement by Seller,
                  and the
                  consummation of the transactions contemplated hereby have been
                  duly
                  authorized, adopted and approved by the Seller as necessary. No
                  other
                  Seller proceedings are necessary to authorize this Agreement and
                  the
                  transactions contemplated hereby. This Agreement has been duly
                  executed by
                  Seller and is a valid and binding obligation enforceable against
                  Seller in
                  accordance with its terms.

              

      

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      

      
        	 	
                (b)

              	
                Neither
                  the execution, delivery, or performance by Seller of this Agreement,
                  nor
                  the consummation of the transactions contemplated hereby, nor compliance
                  by Seller with any of the provisions hereof,
                  will,

              

      

      

      
        	 	
                (i)

              	
                violate,
                  conflict with, result in a breach of any provision of, constitute
                  a
                  default (or an event, which, with the passage of time, the giving
                  of
                  notice, or both, would constitute a default) under, result in the
                  termination of, accelerate the performance required by, or result
                  in a
                  right of termination or acceleration, or the creation of any lien,
                  security interest, charge, or encumbrance upon any of the Property
                  or
                  assets of the Seller, under any of the terms, conditions, or provisions
                  of, the Certificate of Limited Partnership or Articles of Organization
                  or
                  Articles of Incorporation, as applicable, of such Seller, the Limited
                  Partnership Agreement or Operating Agreement, or Bylaws, as applicable,
                  license, lease, agreement, or other instrument, or obligation to
                  which the
                  Seller is a party, or by which the Seller may be bound, or to which
                  the
                  Seller or the Property or assets may be subject with the exception
                  of the
                  Existing Franchise License and the Existing Financing;
                  or

              

      

      

      
        	 	
                (ii)

              	
                violate
                  any judgment, ruling, order, writ, injunction, decree, statute,
                  rule, or
                  regulation applicable to the Seller or its Property or assets that
                  would
                  not be violated by the execution, delivery or performance of this
                  Agreement or the transactions contemplated hereby by the Seller
                  or
                  compliance by the Seller with any of the provisions
                  hereof.

              

      

      

      
        	 	
                (c)

              	
                The
                  Seller has conducted no business other than the ownership of the
                  Property.

              

      

      

      
        	
                3.3

              	
                Litigation
                  With Respect to Seller.
                  Except as set forth on Exhibit F
                  there is no action, suit, claim or proceeding pending, or to Seller’s
                  Knowledge, threatened against or affecting the Seller, any of the
                  Seller’s
                  assets, or any part of or interest in the Property in any court,
                  before
                  any arbitrator or before or by any governmental agency which (a)
                  in any
                  manner raises any question affecting the validity or enforceability
                  of
                  this Agreement or any other material agreement or instrument to
                  which the
                  Seller is a party or by which it is bound and that is or is to
                  be used in
                  connection with, or is contemplated by, this Agreement, (b) could
                  materially and adversely affect the business, financial position
                  or
                  results of operations of the Seller or the Property, (c) could
                  materially
                  and adversely affect the ability of the Seller to perform its obligations
                  hereunder, or under any document to be delivered pursuant hereto,
                  or (d)
                  could create a lien on the Property.

              

      

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      

      
        	
                3.4

              	
                Property.
                  The Property will be on the Closing Date, free and clear of all
                  liens and
                  encumbrances, except for the Permitted Title Exceptions, and the
                  Seller
                  has good, marketable title thereto and the right to convey same.
                  The
                  Seller is the fee simple owner of the Real Property and the sole
                  owner of
                  the Property.

              

      

      

      
        	
                3.5

              	
                Bankruptcy
                  with Respect to Seller.
                  No Act of Bankruptcy has occurred with respect to the
                  Seller.

              

      

      

      
        	
                3.6

              	
                Brokerage
                  Commission.
                  The Seller is wholly liable for any claims brought by any real
                  estate
                  agent, broker, finder or any other person or entity for any brokerage
                  or
                  finder’s fee, commission or other amount with respect to the transaction
                  described herein. 

              

      

      

      
        	
                3.7

              	
                Contracts
                  and Agreements.
                  There is no loan agreement, guarantee, note, bond, indenture and
                  other
                  debt instrument, lease and other contract to which the Seller is
                  a party
                  and which encumber the Property or by which its assets are bound
                  other
                  than the Permitted Title Exceptions, the Leases, the Operating
                  Agreements,
                  and the existing loan documents respecting the Existing Financing
                  (the
                  “Existing
                  Financing Documents”)
                  with Countrywide Financial (“Lender”),
                  provided that the Existing Financing shall be assumed in full by
                  Purchaser
                  at Closing. All loan assumption fees are to be paid by Purchaser.
                  

              

      

      

      
        	
                3.8

              	
                No
                  Special Taxes.
                  The Seller has no Knowledge of, nor has received any written notice
                  of,
                  any special taxes or assessments relating to the Seller or Property
                  or any
                  part thereof or any planned public improvements that may result
                  in a
                  special tax or assessment against the
                  Property.

              

      

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      

      
        	
                3.9

              	
                Compliance
                  with Existing Laws.
                  

              

      

      

      
        	 	
                (a)

              	
                The
                  Seller possesses all Authorizations, each of which is valid and
                  in full
                  force and effect, and, to Seller’s Knowledge, no provision, condition or
                  limitation of any of the Authorizations has been breached or violated.
                  Seller has not misrepresented or, to its Knowledge, failed to disclose
                  any
                  relevant fact in obtaining all Authorizations, and the Seller has
                  no
                  Knowledge of any change in the circumstances under which those
                  Authorizations were obtained that result in their termination,
                  suspension,
                  modification or limitation. 

              

      

      

      
        	 	
                (b)

              	
                The
                  Seller has no Knowledge, nor has it received written notice within
                  the
                  past three (3) years, of any existing violation of any provision
                  of any
                  applicable building, zoning, subdivision, environmental or other
                  governmental ordinance, resolution, statute, rule, order or regulation,
                  including but not limited to those of environmental agencies or
                  insurance
                  boards of underwriters, with respect to the ownership, operation,
                  use,
                  maintenance or condition of the Property or any part thereof, or
                  requiring
                  any repairs or alterations other than those that have been made
                  prior to
                  the date hereof.

              

      

      

      
        	
                3.10

              	
                Operating
                  Agreements.
                  No fact or circumstance has occurred which, by itself or with the
                  passage
                  of time or the giving of notice or both, would constitute a material
                  default under any of the Operating Agreements. Without the prior
                  written
                  consent of the Purchaser, the Seller shall not enter into any new
                  management agreement, maintenance or repair contract, supply contract,
                  lease in which it is lessee or other agreements with respect to
                  the
                  Property (in all such cases, requiring payments by the owner of
                  the
                  Property in excess of $1,000 per year) that will be binding on
                  Purchaser
                  or the Property following the Closing, nor shall the Seller enter
                  into any
                  agreements modifying the Operating Agreements that will be binding
                  on
                  Purchaser or the Property following the Closing.
                  

              

      

      

      
        	
                3.11

              	
                Warranties
                  and Guaranties.
                  The Seller shall not release or modify any warranties or guarantees,
                  if
                  any, of manufacturers, suppliers and installers relating to the
                  Improvements and the Tangible Personal Property or any part thereof,
                  except with the prior written consent of the Purchaser, which consent
                  shall not be unreasonably withheld, conditioned or delayed. A complete
                  list of all such warranties and guaranties in effect as of the
                  date of
                  this Agreement is attached hereto as Exhibit B.

              

      

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      

      
        	
                3.12

              	
                Insurance.
                  All of the Seller’s Insurance Policies are valid and in full force and
                  effect and the Seller shall pay all future premiums for such policies
                  up
                  to the Closing Date (and any replacements thereof) on or before
                  the due
                  date therefor. The Seller shall pay all premiums on, and shall
                  not cancel
                  or allow to expire, any of the Insurance Policies prior to the
                  Closing
                  Date unless such policy is replaced, without any lapse of coverage,
                  by
                  another policy or policies providing coverage at least as extensive
                  as the
                  policy or policies being replaced.

              

      

      

      
        	
                3.13

              	
                Condemnation
                  Proceedings; Roadways.
                  The Seller has received no written notice of any condemnation or
                  eminent
                  domain proceeding pending or threatened against the Property or
                  any part
                  thereof. The Seller has no Knowledge of any change or proposed
                  change in
                  the route, grade or width of, or otherwise affecting, any street
                  or road
                  adjacent to or serving the Real
                  Property.

              

      

      

      
        	
                3.14

              	
                Labor
                  Disputes and Agreements.
                  There are not currently any labor disputes pending or, to Seller’s
                  knowledge, threatened as to the operation or maintenance of the
                  Property
                  or any part thereof. The Seller is not a party to any union or
                  other
                  collective bargaining agreement with employees employed in connection
                  with
                  the ownership, operation or maintenance of the Property. To the
                  Seller’s
                  Knowledge, there is no labor organizing activity, pending or threatened,
                  with respect to any workers of Seller. All of the employees of
                  the Seller
                  are at will employees. 

              

      

      

      
        	
                3.15

              	
                Financial
                  Information.
                  Seller has provided to Purchaser financial information regarding
                  the
                  Property and the business operations of the Hotel, including profit
                  and
                  loss statements, occupancy reports and net income statements from
                  the date
                  the Hotel opened through the Closing Date. All of the foregoing
                  information has been prepared in conformity with generally accepted
                  accounting procedures and the Uniform System of Accounts for the
                  Lodging
                  Industry, and present fairly the results of operations by Seller
                  of the
                  Hotel. To the Seller’s Knowledge, except as otherwise disclosed in writing
                  to the Purchaser, for each of the accounting years, when a given
                  year is
                  taken as a whole, all of the Seller’s and the Property’s financial
                  information previously delivered or to be delivered to the Purchaser
                  is
                  and shall be correct and complete in all material respects.
                  

              

      

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

      

      
        	
                3.16

              	
                Organizational
                  Documents.
                  The Seller’s organizational documents are in full force and effect and
                  have not been modified or supplemented, and to Seller’s Knowledge no fact
                  or circumstance has occurred that, by itself or with the giving
                  of notice
                  or the passage of time or both, would constitute a default
                  thereunder.

              

      

      

      
        	
                3.17

              	
                Operation
                  of Property.
                  The Seller covenants that between the date hereof and the Closing
                  Date,
                  Seller shall or shall cause the Hotel management company to (a)
                  operate
                  the Property only in the usual, regular and ordinary manner consistent
                  with the Seller’s prior practice, (b) maintain the books of account and
                  records in the usual, regular and ordinary manner, in accordance
                  with
                  Seller’s accounting system, (c) use all reasonable efforts to preserve
                  intact the present business organization, (d) maintain the quality
                  and
                  condition of the Improvements and Tangible Personal Property in
                  the same
                  or better quality and condition as they are as of the date hereof,
                  and (e)
                  keep available the services of the present officers and employees
                  and
                  preserve their relationships with suppliers and others having business
                  dealings with them. The Seller shall continue to make good faith
                  efforts
                  to take guest room reservations and to book functions and meetings
                  and
                  otherwise to promote the business of the Property in generally
                  the same
                  manner as the Seller did prior to the execution of this Agreement.
                  Except
                  as otherwise permitted hereby, from the date hereof until Closing,
                  the
                  Seller shall not take any action or fail to take action the result
                  of
                  which would have a material adverse effect on the Property or the
                  Purchaser’s ability to continue the operation thereof after the Closing
                  Date in substantially the same manner as presently
                  conducted.

              

      

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

      

      
        	
                3.18

              	
                Hazardous
                  Substances.
                  Except for matters in Purchaser’s environmental reports and statements,
                  and except for cleaning, swimming pool and hot tub/whirlpool supplies
                  and
                  the like used in the ordinary course of the operations of the Hotel,
                  Seller has no Knowledge (a) of the presence of any “Hazardous
                  Substances”
                  (as defined below) on the Property, or any portion thereof, or,
                  (b) of any spills, releases, discharges, or disposal of Hazardous
                  Substances that have occurred or are presently occurring on or
                  onto the
                  Property, and or any portion thereof, or (c) of the presence of
                  any PCB
                  transformers serving, or stored on, the Property, or any portion
                  thereof,
                  or (d) of any failure to comply with any applicable local, state
                  and
                  federal environmental laws, regulations, ordinances and administrative
                  and
                  judicial orders relating to the generation, recycling, reuse, sale,
                  storage, handling, transport and disposal of any Hazardous Substances
                  (as
                  use herein, “Hazardous Substances” shall mean any substance or material
                  whose presence, nature, quantity or intensity of existence, use,
                  manufacture, disposal, transportation, spill, release or effect,
                  either by
                  itself or in combination with other materials is either:
                  (1) potentially injurious to the public health, safety or welfare,
                  the environment or the Property, (2) regulated, monitored or defined
                  as a hazardous or toxic substance or waste by any Governmental
                  Body, or
                  (3) a basis for liability of the owner of the Property to any
                  Governmental Body or third party, and Hazardous Substances shall
                  include,
                  but not be limited to, hydrocarbons, petroleum, gasoline, crude
                  oil, or
                  any products, by-products or components thereof, and asbestos and
                  mold).

              

      

      

      
        	
                3.19

              	
                Furnishings.
                  All public spaces, lobbies, meeting rooms, and each room in the
                  Hotel
                  available for guest rental are furnished in accordance with Franchisor’s
                  standards for the Hotel and room
                  type.

              

      

      

      
        	
                3.20

              	
                License.
                  

              

      

      

      
        	 	
                (a)

              	
                The
                  Existing Franchise License is valid and in full force and effect,
                  and to
                  Seller’s Knowledge on the Closing Date, Seller will not be in default
                  with
                  respect thereto (with or without the giving of any required notice
                  and/or
                  lapse of time); however, the Existing Franchise License will not
                  be
                  transferable without Franchisor’s
                  consent.

              

      

      

      
        	 	
                (b)

              	
                Subject
                  to Purchaser obtaining a New Franchise License, neither the execution,
                  delivery, or performance by the Seller of this Agreement, nor the
                  consummation of the transactions contemplated hereby, nor compliance
                  by
                  the Seller with any of the provisions hereof, will violate, conflict
                  with,
                  result in a breach of any provision of, constitute a default (or
                  an event
                  that, with notice or lapse of time or both, would constitute a
                  default)
                  under, result in the termination of, or result in a right of termination
                  under any of the terms, conditions, or provisions of, the Existing
                  Franchise License.

              

      

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

      

      
        	
                3.21

              	
                Access
                  to Financial Information.
                  Subject to the other provisions of this Agreement (including Sections
                  2.2(b) and 3.15), Seller shall provide access to Purchaser’s
                  representatives to all financial and other information relating
                  to the
                  operations, maintenance and condition of the Property, and shall
                  provide
                  Purchaser with detailed financial reporting for the Hotel in Seller’s
                  possession. The parties acknowledge that Seller has no responsibility
                  or
                  liability for any information regarding the performance of the
                  Hotel prior
                  to Seller’s ownership. 

              

      

      

      
        	
                3.22

              	
                Leases.
                  True, complete copies of the Leases, are attached as Exhibit D
                  hereto. The Leases are, and will at Closing be, in full force and
                  effect,
                  and to Seller’s Knowledge Seller is not in default under the Leases and
                  the Seller shall make good faith efforts not to be in default with
                  respect
                  thereto (with or without the giving of any notice and/or lapse
                  of time).
                  The Leases are, or will be at Closing, freely assignable by Seller
                  and
                  Seller will have obtained all consents of any third party necessary
                  to
                  assign the Leases to Purchaser.

              

      

      

      
        	
                3.23

              	
                Noncontravention.
                  Except as provided in the Franchise License with Licensor, and
                  the
                  Existing Financing, and except for non-transferable Authorizations,
                  the
                  execution and delivery of, and the performance by the Seller of
                  its
                  respective obligations under this Agreement do not and will not
                  contravene, or constitute a default under, any provision of applicable
                  law
                  or regulation, or any agreement, judgment, injunction, order, decree
                  or
                  other instrument binding upon the Seller, or result in the creation
                  of any
                  lien or other encumbrance on any asset of the Seller or the
                  Property.

              

      

      

      
        	
                3.24

              	
                Sufficiency
                  of Certain Items.
                  The Property includes:

              

      

      

      
        	 	
                (a)

              	
                a
                  sufficient amount of furniture, furnishings, color television sets,
                  carpets, drapes, rugs, floor coverings, mattresses, pillows, bedspreads
                  and the like, of requisite quality and condition, to furnish each
                  guest
                  room in accordance with Franchisor’s standards;
                  and

              

      

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

      

      
        	 	
                (b)

              	
                An
                  amount of towels, washcloths and bed linens, so that there are
                  at least
                  two point five (2.5) par (as such term, “par” is commonly used in the
                  hotel industry) sets of towels, washcloths and linens for each
                  guest room,
                  together with a sufficient supply of paper goods, soaps, cleaning
                  supplies
                  and other such supplies and materials, as Licensor requires or
                  recommends
                  as part of the opening inventory for an identically Branded
                  hotel.

              

      

      

      
        	
                3.25

              	
                FF&E;
                  Fixed Asset Supplies and Inventories.
                  Attached hereto as Exhibit H
                  is
                  a listing of all FF&E, Fixed Asset Supplies and Inventories located at
                  the Hotel as of the date hereof. On or before the Closing Date
                  the
                  FF&E, Fixed Asset Supplies and Inventories shall be brought to the
                  levels required under Section 3.24
                  above.

              

      

      

      ARTICLE
        4

      PURCHASER’S
        REPRESENTATIONS, WARRANTIES AND COVENANTS

       

      To
        induce
        the Seller to enter into this Agreement, the Purchaser hereby makes the
        following representations, warranties and covenants, upon each of which the
        Purchaser acknowledges and agrees that the Seller is entitled to rely and
        has
        relied upon:

      

      
        	
                4.1

              	
                Identity
                  and Power.
                  

              

      

      

      
        	 	
                (a)

              	
                Purchaser
                  is and has all requisite powers and all governmental licenses,
                  authorizations, consents and approvals necessary to carry on its
                  business
                  as now conducted, to execute and deliver this Agreement and any
                  document
                  or instrument required to be executed and delivered on behalf of
                  the
                  Purchaser hereunder, to perform its obligations under this Agreement
                  and
                  any such other documents or instruments and to consummate the transactions
                  contemplated hereby; and

              

      

      

      
        	 	
                (b)

              	
                Purchaser
                  is a New York limited liability company duly organized, validly
                  existing
                  under the laws of the State of New York, and has all requisite
                  power and
                  authority under the laws of such State and under its charter documents
                  to
                  enter into and perform its obligations under this Agreement and
                  to
                  consummate the transactions contemplated hereby. Purchaser is in
                  good
                  standing as a limited liability company in the State of New
                  York.

              

      

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

      

      
        	
                4.2

              	
                Authorization,
                  No Violations and Notices.

              

      

      

      
        	 	
                (a)

              	
                The
                  execution, delivery and performance of this Agreement by Purchaser,
                  and
                  the consummation of the transactions contemplated hereby have been
                  duly
                  authorized, adopted and approved by the Purchaser as necessary.
                  No other
                  proceedings are necessary to authorize this Agreement and the transactions
                  contemplated hereby. This Agreement has been duly executed by Purchaser
                  and is a valid and binding obligation enforceable against Purchaser
                  in
                  accordance with its terms. Purchaser is in possession of all third
                  party
                  consents required to execute this Agreement and to perform its
                  obligations
                  hereunder.

              

      

      

      
        	 	
                (b)

              	
                Neither
                  the execution, delivery, or performance by Purchaser of this Agreement,
                  nor the consummation of the transactions contemplated hereby, nor
                  compliance by Purchaser with any of the provisions hereof,
                  will.

              

      

      

      
        	 	
                (i)

              	
                result
                  in the termination of, accelerate the performance required by,
                  or result
                  in a right of termination or acceleration, or the creation of any
                  lien,
                  security interest, charge, or encumbrance upon the Purchaser or
                  assets of
                  the Purchaser, under any of the terms, conditions, or provisions
                  of, the
                  Articles of Organization of Purchaser, license, lease, agreement,
                  or other
                  instrument, or obligation to which the Purchaser is a party, or
                  by which
                  the Purchaser may be bound, or to which the Purchaser may be subject;
                  or

              

      

      

      
        	 	
                (ii)

              	
                violate
                  any judgment, ruling, order, writ, injunction, decree, statute,
                  rule, or
                  regulation applicable to the
                  Purchaser.

              

      

      

      
        	
                4.3

              	
                Noncontravention.
                  The execution and delivery of this Agreement and the performance
                  by the
                  Purchaser of its obligations hereunder do not and will not contravene,
                  or
                  constitute a default under, any provisions of applicable law or
                  regulation, or any agreement, judgment, injunction, order, decree
                  or other
                  instrument binding upon
                  Purchaser.

              

      

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

      

      
        	
                4.4

              	
                Litigation.
                  There is no action, suit or proceeding, pending against the Purchaser,
                  or
                  Purchaser’s assets, in any court or before any arbitrator or before any
                  governmental body which (a) in any manner raises any question
                  affecting the validity or enforceability of this Agreement or any
                  other
                  agreement or instrument to which Purchaser is a party or by which
                  it is
                  bound and that is to be used in connection with, or is contemplated
                  by,
                  this Agreement, (b) could materially and adversely affect the ability
                  of the Purchaser to perform its obligations hereunder, or under
                  any
                  document to be delivered pursuant hereto, or (c) could materially
                  and
                  adversely affect the financial position of the Purchaser.
                  

              

      

      

      
        	
                4.5

              	
                Bankruptcy.
                  No Act of Bankruptcy has occurred with respect to the
                  Purchaser.

              

      

      

      
        	
                4.6

              	
                No
                  Brokers.
                  The Purchaser has not engaged the services of, nor is it or will
                  it become
                  liable to, any real estate agent, broker, finder or any other person
                  or
                  entity for any brokerage or finder’s fee, commission or other amount with
                  respect to the transaction described
                  herein.

              

      

      

      ARTICLE
        5

      CONDITIONS
        AND ADDITIONAL COVENANTS

       

      The
        obligations of Seller and Purchaser hereunder are subject to the satisfaction
        of
        the following conditions precedent and the compliance by the Seller and
        Purchaser, as applicable, with the following covenants:

      

      
        	
                5.1

              	
                Seller’s
                  Deliveries.
                  The Seller shall have delivered to the Escrow Agent or the Purchaser,
                  as
                  the case may be, on or before the Closing Date, all of the documents
                  and
                  other information required of Seller pursuant to Section 6.2.

              

      

      

      
        	
                5.2

              	
                Representations,
                  Warranties and Covenants; Obligations of Parties;
                  Certificate.
                  All of the Seller’s representations and warranties made in this Agreement
                  shall be true and correct as of the date hereof and as of the Closing
                  Date
                  as if then made, the Seller shall have performed all of its material
                  covenants and other obligations under this Agreement, and the Seller
                  shall
                  have executed and delivered to the Purchaser at Closing a certificate
                  to
                  the foregoing effect. All of the Purchaser’s representations and
                  warranties made in this Agreement shall be true and correct as
                  of the date
                  hereof and as of the Closing Date as if then made, the Purchaser
                  shall
                  have performed all of its material covenants and other obligations
                  under
                  this Agreement, and the Purchaser shall have executed and delivered
                  to the
                  Seller at Closing a certificate to the foregoing
                  effect.

              

      

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

      

      
        	
                5.3

              	
                Title
                  Insurance.
                  Purchaser shall have received a title policy from the Title Company
                  insuring good and indefeasible fee simple title to the Real Property
                  issued by the Title Company at or below its regularly scheduled
                  rates
                  subject only to Permitted Title Exceptions as determined in accordance
                  with Section 2.2.
                  

              

      

      

      
        	
                5.4

              	
                Condition
                  of Improvements.
                  The Improvements and the Tangible Personal Property shall be in
                  the same
                  condition at Closing as they are as of the date hereof, reasonable
                  wear
                  and tear excepted. Except for the Excluded Assets which shall be
                  distributed to the Seller prior to the Closing Date, the Seller
                  shall not
                  have removed or caused or permitted to be removed any part or portion
                  of
                  the Real Property or the Tangible Personal Property unless the
                  same is
                  replaced, prior to Closing, with similar items of at least equal
                  quality
                  and condition and acceptable to the
                  Purchaser.

              

      

      

      
        	
                5.5

              	
                Utilities.
                  All of the Utilities shall be installed in and operating at the
                  Property,
                  and service shall be available for the removal of garbage and other
                  waste
                  from the Property.

              

      

      

      
        	
                5.6

              	
                License.
                  From the date hereof to and including the Closing Date, Seller
                  shall
                  comply with and perform all of the duties and obligations of licensee
                  under the Franchise License and Seller shall not be in default
                  under the
                  Franchise License.

              

      

      

      
        	
                5.7

              	
                Franchise
                  License Contingency.
                  As a condition to Closing, Franchisor shall approve and grant a
                  New
                  Franchise License to Purchaser or its affiliate or subsidiary.
                  Purchaser
                  shall be responsible for obtaining, and shall use diligent efforts
                  to
                  obtain a New Franchise License respecting the Hotel, provided that
                  Seller
                  shall use its best efforts in assisting Purchaser in obtaining
                  a New
                  Franchise License, and shall fully cooperate with Purchaser’s application
                  and pursuit of the same with Franchisor. In the event that Purchaser
                  is
                  unable to obtain a New Franchise License on or before the Target
                  Closing
                  Date (or for purpose of option (ii) below on or before the expiration
                  of any of the applicable extension periods) then either (i) Purchaser
                  may elect to extend the Closing Date for up to three thirty (30)
                  day
                  periods after the Target Closing Date, during which period Purchaser
                  shall
                  diligently strive to secure a New Franchise License or
                  (ii) Purchaser, at Purchaser’s sole option, may elect to terminate
                  this Agreement.

              

      

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

      

      
        	
                5.8

              	
                Existing
                  Financing.
                  Purchaser will assume the Existing Financing upon completion of
                  the
                  Closing Process. Purchaser will pay all loan assumption costs in
                  assuming
                  the Existing Financing.

              

      

      

      
        	
                5.9

              	
                Existing
                  Management Agreement.
                  Seller shall cause the existing management agreement for the Hotel
                  to be
                  terminated on the Closing Date, and Seller shall be responsible
                  for all
                  fees and costs associated with such
                  termination.

              

      

      

      
        	
                5.10

              	
                Liquor
                  License.
                  Intentionally Deleted. 

              

      

      

      
        	
                5.11

              	
                Property.
                  The Property shall be free and clear of all liens and encumbrances,
                  except
                  for the Permitted Title Exceptions.

              

      

      

      
        	
                5.12

              	
                Hotel
                  Employees.
                  On the Closing Date, the Seller shall or shall cause the employer
                  of the
                  Hotel Employees, to terminate the employment of all Hotel Employees.
                  Purchaser shall have no obligation to hire the Hotel Employees.
                  The
                  provisions of this Section 5.12 shall survive the Closing. Sellers
                  shall have sole and exclusive responsibility for any compliance,
                  including
                  all applicable notices, with the requirements, if any, of the Worker
                  Adjustment and Retraining Notification
                  Act.

              

      

      

      
        	
                5.13

              	
                Right
                  to Audit.
                  For two years following the Closing Date, Purchaser shall have
                  the right,
                  at its expense, to audit the books, records, financials, and financial
                  control procedures of the Seller with respect to the Hotel for
                  any portion
                  of the 24 months preceding the Closing Date. This right shall survive
                  Closing.

              

      

      

      ARTICLE
        6

      CLOSING
        

      

      
        	
                6.1

              	
                Closing
                  

              

      

      

      
        	 	
                (a)

              	
                Closing
                  shall be held at a location that is mutually acceptable to the
                  parties or
                  may be conducted via telephone, facsimile and overnighted escrow
                  documents. The date that Closing is expected to occur is March
                  31, 2007
                  (“Target
                  Closing Date.”)

              

      

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

      

      
        	 	
                (b)

              	
                In
                  the event of a termination, the parties shall have no further obligations
                  to one another under this Agreement except those which expressly
                  survive
                  termination. 

              

      

      

      
        	
                6.2

              	
                Seller’s
                  Deliveries.
                  At Closing, the Seller shall deliver to Purchaser or the Escrow
                  Agent all
                  of the following instruments, each of which shall have been duly
                  executed
                  and, where applicable, acknowledged on behalf of the Seller and
                  shall be
                  dated as of the Closing Date:

              

      

      

      
        	 	
                (a)

              	
                Bargain
                  and Sale Deed with covenants against Grantor’s Acts conveying fee simple
                  title of the Real Property to Purchaser (“Deed”).

              

      

      

      
        	 	
                (b)

              	
                The
                  Assignment and Assumption
                  Agreement.

              

      

      

      
        	 	
                (c)

              	
                The
                  FIRPTA Certificate.

              

      

      

      
        	 	
                (d)

              	
                True,
                  correct and complete copies of all warranties, if any, of manufacturers,
                  suppliers and installers possessed by the Seller and relating to
                  the
                  Improvements and the Personal Property, or any part
                  thereof.

              

      

      

      
        	 	
                (e)

              	
                The
                  certificate required by Section 5.2.

              

      

      

      
        	 	
                (f)

              	
                Appropriate
                  consent of the Seller, authorizing (A) the execution of any documents
                  to be executed and delivered by the Seller prior to, at or otherwise
                  in
                  connection with Closing and in connection with the transactions
                  contemplated by this Agreement, and (B) the performance by the Seller
                  of its obligations hereunder and under such
                  documents.

              

      

      

      
        	 	
                (g)

              	
                Valid,
                  final and unconditional certificate(s) of occupancy for the Real
                  Property
                  and Improvements, issued by the appropriate Governmental
                  Body.

              

      

      

      
        	 	
                (h)

              	
                All
                  current real estate and personal property tax bills in the Seller’s
                  possession or under its control.

              

      

      

      
        	 	
                (i)

              	
                A
                  set of all guest registration cards, guest transcripts, guest histories,
                  and all other available guest
                  information.

              

      

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

      

      
        	 	
                (j)

              	
                A
                  list of advance room reservations, functions and the like, in reasonable
                  detail so as to enable the Purchaser to honor the Seller’s commitments in
                  that regard.

              

      

      

      
        	 	
                (k)

              	
                All
                  keys for the Property.

              

      

      

      
        	 	
                (l)

              	
                To
                  the extent not previously delivered to Purchaser, all books, records,
                  operating reports, appraisal reports, files and other materials
                  relating
                  to the Hotel in the Seller’s possession or
                  control.

              

      

      

      
        	 	
                (m)

              	
                Such
                  proof, reasonably acceptable to the Seller evidencing the payment
                  by
                  Purchaser and Seller of all transfer taxes, if any, incurred in
                  connection
                  with the transactions contemplated by this Agreement.
                  

              

      

      

      
        	 	
                (n)

              	
                An
                  updated schedule of employees of the Seller or its hotel manager,
                  showing
                  salaries and duties with a statement of the length of service of
                  each such
                  employee, brought current to a date not more than 48 hours prior
                  to the
                  Closing.

              

      

      

      
        	 	
                (o)

              	
                Bill
                  of Sale conveying the Seller’s interest in the Intangible Personal
                  Property and Tangible Personal
                  Property.

              

      

      

      
        	 	
                (p)

              	
                Written
                  evidence of Seller’s satisfaction of all Monetary Liens (except the
                  Existing Financing).

              

      

      

      
        	 	
                (q)

              	
                A
                  tax clearance certificate (or similar evidence) from the New York
                  Department of Taxation and Finance concerning taxes for the Property,
                  and
                  an escrow of funds in the amount of all sales taxes owed by Seller,
                  if
                  any.

              

      

      

      
        	 	
                (r)

              	
                Real
                  estate transfer tax forms required by law in connection with the
                  sale of
                  the Land. 

              

      

      

      
        	 	
                (s)

              	
                Any
                  other document or instrument reasonably requested by the Purchaser,
                  the
                  Title Company, or required
                  herein.

              

      

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

      

      
        	
                6.3

              	
                Purchaser’s
                  Deliveries.
                  At Closing, the Purchaser shall pay or deliver to the Seller or
                  the Escrow
                  Agent the following:

              

      

      

      
        	 	
                (a)

              	
                The
                  Consideration, paid in accordance with the provisions set forth
                  in this
                  Agreement;

              

      

      

      
        	 	
                (b)

              	
                The
                  Assignment and Assumption
                  Agreement;

              

      

      

      
        	 	
                (c)

              	
                Appropriate
                  consent of the Purchaser, authorizing (A) the execution of any
                  documents to be executed and delivered by the Purchaser prior to,
                  at or
                  otherwise in connection with Closing and in connection with the
                  transactions contemplated by this Agreement, and (B) the performance
                  by the Purchaser of its obligations hereunder and under such documents;
                  and

              

      

      

      
        	 	
                (d)

              	
                Intentionally
                  Deleted

              

      

      

      
        	 	
                (e)

              	
                Any
                  other document or instrument reasonably requested by the Seller,
                  the Title
                  Company, or required hereby.

              

      

      

      
        	
                6.4

              	
                Closing
                  Costs.
                  Real
                  estate transfer taxes due with respect to the transfer of the Property
                  and
                  any and all other taxes shall be paid by the Purchaser. All filing
                  fees,
                  recording or other similar taxes due with respect to the transfer
                  of the
                  Property shall be paid by Purchaser. All charges for title insurance
                  premiums shall be paid by Purchaser. All fees and costs associated
                  with
                  the satisfaction and/or termination of the Existing Financing shall
                  be
                  paid by the Purchaser.
                  All charges for title insurance premiums shall be paid by Purchaser
                  and
                  Purchaser shall also pay all other of its own closing costs, including
                  without limitation, all costs of settlement, all costs and fees
                  for title
                  examination, and survey costs. All fees and costs associated with
                  the
                  assumption of the Existing Financing by the Purchaser shall be
                  paid by
                  Purchaser. All fees and costs associated with the transfer of the
                  franchise license shall be paid by Purchaser. Each party shall
                  pay their
                  own attorney’s fees. 

              

      

      

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

       

      
        	
                6.5

              	
                Apportionments
                  and Other Economic Adjustments.

              

      

      

      
        	 	
                (a)

              	
                Items
                  to be Apportioned.
                  The following shall be prorated and apportioned between Seller
                  and
                  Purchaser as of 11:59 P.M. on the Apportionment
                  Date,
                  except as otherwise expressly provided to the contrary
                  below:

              

      

       

      
        	 	
                (i)

              	
                Property
                  Taxes.
                  Real estate taxes, ad valorem taxes, if any, personal property
                  taxes, if
                  any, special assessments, sewer rents and taxes, and any other
                  governmental tax or charge levied or assessed against the Property
                  (collectively, the “Property
                  Taxes”),
                  shall be apportioned on the basis of the respective periods of
                  ownership
                  of the Property by Seller and Purchaser. If the Closing Date shall
                  occur
                  either before an assessment is made or a tax rate is fixed for
                  the tax
                  period in which the Closing occurs, the apportionment of such Property
                  Taxes shall be calculated on the basis of the prior year’s Property Taxes,
                  but, after the assessment and tax rate for the current year are
                  fixed, the
                  apportionment thereof shall be recalculated and Seller or Purchaser,
                  as
                  the case may be, shall promptly pay to the other the amount determined
                  to
                  be due based on such recalculation.

              

      

      

      
        	 	
                (ii)

              	
                Utilities.
                  The Utilities shall be apportioned (i) by having the utility
                  companies servicing the Property make final meter readings on the
                  Apportionment Date, the payment of which shall be Seller’s responsibility,
                  or (ii) if such readings cannot be obtained, on the basis of the most
                  recent bills that are available, reasonably adjusted (if necessary)
                  to
                  reflect any changes in occupancy, temperature or other relevant
                  variables
                  between the respective periods covered by such bills and the most
                  recent
                  relevant at period, to the extent such changes would have a material
                  impact on the amount of the estimated charges for the most recent
                  period
                  for the utility in question. If the apportionment is not based
                  on an
                  actual current reading, then, upon the taking of a subsequent actual
                  reading, or upon receipt of a subsequent bill, such apportionment
                  shall be
                  recalculated and Seller or Purchaser, as the case may be, shall
                  promptly
                  pay to the other the amount determined to be due upon such recalculation.
                  Purchaser shall be under no obligation to assume or reimburse Seller
                  for
                  any utility deposits made by Seller, provided that, in the event
                  Purchaser
                  either receives the monetary benefit of such deposit or a credit
                  from the
                  applicable utility company for such deposit or, at its sole discretion,
                  assumes utility a deposit made by Seller, Purchaser shall credit
                  Seller
                  the amount of such monetary benefit, credit or assumed utility
                  deposit, as
                  applicable, at Closing. In the event Purchaser elects not to assume
                  a
                  utility deposit made by Seller and does not receive a credit or
                  monetary
                  benefit from the utility company for such utility deposit made
                  by Seller,
                  the collection of such deposit shall be Seller’s sole
                  responsibility.

              

      

       

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (iii)

              	
                Licenses.
                  Prepaid fees or other charges for transferable licenses agreed to be
                  assumed by Purchaser, if any, shall be apportioned on the basis
                  of the
                  respective periods of ownership of the Property by Seller and Purchaser,
                  but all amounts refundable under unassigned or unassignable licenses
                  shall
                  remain the property of Seller. Purchaser shall reimburse the Seller
                  for
                  actual and substantiated out-of-pocket costs expended by the Seller
                  from
                  the Agreement Date through the Apportionment Date in order to obtaining
                  signage from the New York State Department of Transportation. These
                  costs
                  are not expected to exceed $20,000 and shall result in the signage
                  be
                  delivered in May 2007. Should the out-of-pocket costs exceed $20,000
                  (or
                  should the Seller become aware of a circumstance that would lead
                  Seller to
                  expect that the costs will exceed $20,000), Seller shall secure
                  the
                  consent of the Purchaser prior to expending or committing to expend
                  over
                  $20,000. 

              

      

      

      
        	 	
                (iv)

              	
                Operating
                  Agreements and Leases.
                  Amounts paid or payable under the Operating Agreements and Leases
                  agreed
                  to be assumed by Purchaser hereto shall be apportioned on the basis
                  of the
                  period covered by such payments.

              

      

      

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

       

      
        	 	
                (v)

              	
                Revenues.
                  All revenues (whether collected or not) from the rental of guestrooms
                  and
                  from food and beverage and other sales or services posted to a
                  guest room
                  account through 11:59 pm on the Apportionment Date shall belong
                  100% to
                  Seller. After this time all revenues from the rental of guestrooms
                  and
                  from food and beverage and other sales or services posted to a
                  guest room
                  account shall belong to Purchaser. For purpose of these apportionments,
                  the hotel personnel shall promptly post all charges as they are
                  incurred.
                  Guestroom rental charges of those guests who check-in on the Apportionment
                  Date shall be deemed incurred at check-in. Revenues from any meeting
                  room
                  occupied, but vacated prior to midnight of the Apportionment Date
                  shall
                  belong to Seller. Revenues from any meeting room that was not occupied
                  until after this time shall belong to Purchaser. Revenues for any
                  meeting
                  room that was occupied by the same customer on both the Apportionment
                  Date
                  and the Closing Date shall be allocated between the Seller and
                  Purchaser
                  based on the number of hours on each such date that the room was
                  occupied
                  and unavailable for rental to other customers.

              

      

       

      
        	 	
                (vi)

              	
                Space
                  Leases.
                  All rents and other charges paid or payable to Seller pursuant
                  to Space
                  Lease, if any, shall be apportioned as of the Apportionment Date.
                  At the
                  Closing, Seller shall furnish to Purchaser a schedule of all minimum
                  rents
                  and other monthly charges, and an estimate of any percentage rents
                  and
                  other variable charges under the Space Leases (including the current
                  month), which rents and charges are then due and payable but remain
                  unpaid
                  (in the case of minimum rents and fixed charges) or which have
                  accrued but
                  have not been billed or paid (in the case of percentage rents and
                  other
                  variable charges) and Seller shall receive a credit for all such
                  unpaid
                  rents and charges accrued (or estimated to have accrued) through
                  the
                  Apportionment Date, provided that no credits shall be given to
                  Seller for
                  any unpaid minimum rents or fixed charges that are more than one
                  (1) month
                  overdue. If any payments of rent or other fixed charges are received
                  by
                  Seller after the Closing which are payable to Purchaser by reason
                  of this
                  allocation, such sum shall be promptly paid by Seller to Purchaser.
                  Percentage rents and other variable charges under the Space Leases,
                  which
                  are not fixed in amount, shall be apportioned based on a reasonable
                  estimate by Seller, but, when the actual amounts are determined,
                  the
                  apportionment thereof shall be recalculated and Seller or Purchaser,
                  as
                  the case may be, shall adjust to the extent necessary by making
                  an
                  appropriate payment to the other based on such recalculation.
                  

              

      

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

      

      
        	 	
                (vii)

              	
                Sales
                  Taxes.
                  All sales, use and occupancy taxes, if any, due or to become due
                  in
                  connection with revenues from the Hotel apportioned or allocated
                  to Seller
                  in accordance with Section 6.5(v) shall
                  be paid by Seller, and all sales, use and occupancy taxes due or
                  to become
                  due in connection with revenues apportioned or allocated to Purchaser
                  in
                  accordance with Section 6.5(v) shall
                  be paid by Purchaser. Seller and Purchaser shall each indemnify
                  the other
                  from and against any liability for unpaid sales, use or occupancy
                  tax
                  resulting from the indemnifying party’s failure to make the payments
                  required under this
                  Section 6.5(viii).

              

      

      

      
        	 	
                (b)

              	
                Receivables.
                  Seller, at its sole option, may require Purchase to purchase the
                  entire
                  book of accounts receivable under the following
                  formula:

              

      

      

      
        	
                Account
                  Aging at Closing

              	 	
                Purchase
                  Price

              
	
                0-45
                  days

                46-90
                  days

                91
                  days and beyond

              	 	
                90%
                  of Account Balance

                25%
                  of Account Balance

                0%
                  of Account Balance

              

      

      

      If
        Seller
        does not choose to sell the entire book of accounts receivables to Purchaser,
        Purchaser shall not be obligated to collect any accounts receivable for Seller,
        except that in the first two billing cycles following closing, Purchaser
        shall
        reasonably cooperate with Seller in its efforts to collect receivables from
        accounts which owe a receivable balance to the Seller and Purchaser, it being
        understood that in all instances, Purchaser shall prioritize its interest
        above
        those of the Seller. Notwithstanding anything to the contrary in this Agreement
        if Purchaser receives checks for payment of a receivable owned by Seller,
        Purchaser shall promptly forward same to Seller.

      
        
          
          

        

        
          30

          
            

          

        

        
          
          

        

      

      

      
        	 	
                (c)

              	
                House
                  Banks.
                  Purchaser shall have the option, at its sole discretion, to purchase
                  the
                  House Banks, provided Purchaser, if it chooses to do so, shall
                  only
                  purchase cash on hand and shall in no event purchase any receipts.
                  

              

      

      

      
        	 	
                (d)

              	
                Employee
                  Wages and Other Compensation.
                  On or before the Closing Date, Seller shall pay or cause to be
                  paid (i)
                  all unpaid wages or salaries (including any earned but unused vacation
                  days accrued, irrespective of whether such vacation days are actually
                  vested) of the Employees; (ii) any employment taxes or government
                  levies
                  on item (i) above; and (iii) any retirement plan payments, medical
                  insurance payments or other similar deductions. Hereinafter, (i)
                  through
                  (iii) above shall be referred to as the “Seller’s
                  Employee Payment.”
                  Seller shall be responsible for Seller’s Employee Payment accruing
                  (i) through the Closing Date for housekeeping and laundry service
                  employees, (ii) through the posted check-out time for front desk
                  employees, (iii) through 7:00 am on the Closing Date for the night
                  auditor and security force, and (iv) through 11:59 pm on the
                  Apportionment Date for all other Employees. From these timeframes
                  forward,
                  Purchaser shall be responsible for these expenses.
                  

              

      

      

      
        	 	
                (e)

              	
                Reconciliation
                  and Final Payment; Intent of Section.
                  Seller and Purchaser shall cooperate after Closing to make a final
                  determination of the prorations and adjustments required hereunder
                  as soon
                  as reasonably practicable, but in no event later than ninety (90)
                  days
                  after the Closing Date (except with respect to any item which is
                  not
                  determinable within such time frame, as to which the time period
                  shall be
                  extended until such item is determinable). Upon the final reconciliation
                  of the prorations and adjustments under this Section 6.5,
                  the party which owes the other party any sums hereunder shall pay
                  such
                  party such sums within ten (10) days after the reconciliation thereof.
                  It
                  is the intent of the parties that all items herein which are subject
                  to
                  apportionment shall, except as otherwise specifically provided
                  in
                  Section 6.5,
                  result in Seller receiving all of the economic benefits and burdens
                  of the
                  Hotel with respect to the period prior to the Closing Date, and
                  Purchaser
                  receiving all of the economic benefits and burdens of the Hotel
                  with
                  respect to the period from and after the Closing
                  Date.

              

      

      
        
          
          

        

        
          31

          
            

          

        

        
          
          

        

      

      

      
        	 	
                (f)

              	
                Seller’s
                  Acknowledgement.
                  It is expressly acknowledged and agreed by Seller that Purchaser
                  has no
                  intention of assuming, and does not and will not, in any way, assume,
                  undertake, agree to perform or accept responsibility for any debts,
                  liabilities or obligations of Seller of any kind whatsoever, whether
                  absolute, contingent or otherwise, known or unknown, pending or
                  threatened, concerning the Property or otherwise, other than liabilities
                  and obligations that Purchaser expressly assumes under the terms
                  of this
                  Agreement or under any of the documents executed by Purchaser at
                  the
                  Closing. Seller shall remain fully and solely responsible for the
                  satisfaction of all of Seller’s own liabilities and obligations, absolute,
                  contingent or otherwise, known or unknown, liquidated or unliquidated,
                  pending or threatened, whether incurred before or after the Closing
                  Date,
                  except as aforesaid. Likewise, Seller shall not assume or be liable
                  for
                  any liabilities of Purchaser from and after the date of Closing,
                  and
                  Purchaser shall remain fully and solely responsible and liable
                  for the
                  same. 

              

      

      

      
        	 	
                (g)

              	
                Accounts
                  Payable.
                  Seller shall retain and be responsible for the payment of all accounts
                  payable and other debts and liabilities of Seller or otherwise
                  relating to
                  the Hotel, which have accrued prior to the Closing, whether or
                  not
                  invoiced (the “Accounts
                  Payable”),
                  except to the extent Purchaser has received a credit for any such
                  item
                  under Section 6.5
                  of
                  this Agreement. The parties acknowledge and agree that except as
                  may be
                  expressly set forth in this Agreement, Purchaser is in no way assuming
                  any
                  responsibility for the payment of any Accounts Payable of Seller.
                  

              

      

      

      
        	 	
                (h)

              	
                Seller’s
                  Indemnity.
                  Seller shall and hereby agrees to defend, indemnify and hold harmless
                  Purchaser, its successors and assigns, from and against any and
                  all loss,
                  damage, cost, claim, liability or expense (including court costs
                  and
                  reasonable attorneys’ fees) suffered or incurred by Purchaser as a result
                  of Seller’s failure to pay any Accounts Payable or any sales, use or
                  occupancy taxes due in connection with the rental of rooms or the
                  sale of
                  goods prior to the Closing Date, the performance of services prior
                  to 4:00
                  am on the Closing Date, except to the extent Purchaser has received
                  a
                  credit therefor against the Consideration pursuant to this Agreement
                  or to
                  the extent of any sales, use or occupancy tax due in connection
                  with any
                  Accounts Receivable purchased by Purchaser.

              

      

      
        
          
          

        

        
          32

          
            

          

        

        
          
          

        

      

      

      
        	 	
                (i)

              	
                Purchaser’s
                  Indemnity.
                  Purchaser shall and hereby agrees to defend, indemnify and hold
                  harmless
                  Seller, its successors and assigns, from and against any and all
                  loss,
                  damage, cost, claim, liability or expense (including court costs
                  and
                  reasonable attorneys’ fees) suffered or incurred by Seller as a result of
                  Purchaser’s failure to pay any Accounts Payable after Closing, or any
                  sales taxes owed in connection with the transfer of the Tangible
                  Personal
                  Property, or any sales, use or occupancy taxes due in connection
                  with the
                  rental of rooms or the sale of goods arising out of any liability
                  or
                  obligation expressly assumed by Purchaser hereunder or in any agreement
                  executed and/or delivered at the Closing, or resulting from Purchaser’s
                  failure to pay any item for which it received a credit against
                  the
                  Consideration under this Agreement, or resulting from the operation
                  of the
                  Hotel subsequent to Closing.

              

      

      

      
        	 	
                (j)

              	
                Survival.
                  The provisions of this Section 6.5
                  shall survive the Closing for a period of six (6)
                  months.

              

      

      
        
          
          

        

        
          33

          
            

          

        

        
          
          

        

      

      

      
        	
                6.6

              	
                Safes
                  and Baggage.

              

      

      

      
        	 	
                (a)

              	
                Safes.
                  On the Closing Date Seller shall cause the delivery to Purchaser
                  of all of
                  Seller’s keys to all safes and safe deposit boxes (collectively, the
                  “safes”)
                  at the Property. On or prior to the Closing Date, Seller shall
                  give
                  written notices to those persons who have deposited items in any
                  central
                  safes (excluding in-room safes), advising them of the sale of the
                  Hotel to
                  Purchaser and requesting the removal or verification of their contents
                  in
                  the safes on the Closing Date. All such removals or verifications
                  on the
                  Closing Date shall be under the supervision of Seller’s and Purchaser’s
                  respective representatives. All contents which are to remain in
                  the safes
                  shall be recorded. Items belonging to guests who have not responded
                  to
                  such written notice by so removing or verifying their safe contents
                  by the
                  end of the day shall be recorded in the presence of the respective
                  representatives. Any such contents so verified or recorded and
                  thereafter
                  remaining in the hands of Purchaser shall be the responsibility
                  of
                  Purchaser and Purchaser hereby agrees to indemnify, defend and
                  hold Seller
                  harmless from any liability therefor. Seller hereby agrees to indemnify
                  and hold Purchaser harmless from any liability arising from claims
                  by
                  guests for any loss of contents in the safes not verified or recorded
                  on
                  the Closing Date.

              

      

      

      
        	 	
                (b)

              	
                Baggage.
                  On the Closing Date representatives of Purchaser and Seller shall
                  take an
                  inventory of all baggage, valises and trunks checked or left in
                  the care
                  of Seller at the Property. From and after the Closing Date, Purchaser
                  shall be responsible for all baggage listed in said inventory and
                  Purchaser hereby indemnifies and agrees to hold Seller harmless
                  from any
                  liability therefor. Seller shall remain liable for any negligence
                  or
                  malfeasance with respect to such baggage which occurred prior to
                  the
                  Closing Date as well as for claimed omissions from said inventory,
                  and
                  hereby indemnifies and agrees to hold Purchaser harmless from any
                  liability therefor.

              

      

      
        
          
          

        

        
          34

          
            

          

        

        
          
          

        

      

      

      
        	
                6.7

              	
                Pre-Closing
                  Interim Operation.
                  

              

      

      

      
        	 	
                (a)

              	
                Seller
                  hereby covenants and agrees that between the date of this Agreement
                  and
                  the Closing, Seller shall use commercially reasonable efforts to
                  cause the
                  Hotel to be operated and maintained consistent with prior practice,
                  it
                  being understood that the termination of the existing franchise
                  may have
                  negative repercussions on the performance of the Hotel. Until the
                  Closing
                  Date, Seller shall be permitted to terminate or modify existing
                  Leases,
                  Operating Agreements and room agreements, and to enter into new
                  leases,
                  service contracts and room agreements on commercially reasonable
                  terms
                  only with the prior written consent of Purchaser, which consent
                  shall not
                  be unreasonably withheld, conditioned or delayed; provided, however,
                  that
                  no such consent shall be required in the case of a lease, service
                  contract
                  or room agreement which is terminable without penalty on not more
                  than
                  thirty (30) days notice. If Purchaser fails to respond to a written
                  request for consent within seven (7) days after receipt of such
                  request,
                  such consent shall be deemed given. Seller shall provide Purchaser
                  with
                  copies of any such terminations and modifications, and new leases,
                  service
                  contracts and agreements promptly after the execution thereof.
                  Except in
                  the ordinary course of business, Seller shall not transfer to any
                  third
                  party or remove any FF&E from the Hotel after the date hereof, except
                  for repair or replacement thereof with items of substantially similar
                  quality. Seller will not take any action which will adversely affect
                  title
                  to the Property or cause the representations and warranties set
                  forth in
                  Article III
                  above to be untrue as of the Closing
                  Date.

              

      

      

      
        	 	
                (b)

              	
                Contract
                  Defaults.
                  If Seller shall receive written notice of any default under any
                  lease,
                  service contract or room agreement, including, without limitation
                  any
                  Operating
                  Agreement, Lease or Space Lease,
                  Seller shall promptly deliver a copy of said notice to
                  Purchaser.

              

      

      
        
          
          

        

        
          35

          
            

          

        

        
          
          

        

      

      

      
        	 	
                (c)

              	
                Transition
                  of Management, Communications with Employees.
                  Seller shall permit Purchaser’s transition management team to witness and
                  review the management and operation of the Hotel during the fourteen
                  day
                  period that precedes the Target Closing Date. If the Target Closing
                  Date
                  is delayed for any reason, Purchaser shall use commercially reasonable
                  efforts to reschedule its activities to accommodate the extension.
                  In all
                  instances, Purchaser shall give at least a 24-hour notice to Bharat
                  C.
                  Mehta and Hasu P. Shah at the Site prior entering the premises.
                  Personnel
                  from Purchaser’s transition management team shall have reasonable access
                  during normal business hours to all books and records to be transferred
                  to
                  Purchaser, and shall have the right (at Purchaser’s expense) to establish
                  duplicate books in order to effect a smooth transition in the ownership
                  and management of the Hotel; provided, however, that Purchaser
                  and its
                  transition management team (a) shall not unreasonably interfere
                  with the
                  normal management and operation of the Hotel, (b) shall hold all
                  information acquired from such books and records confidential
                  (c) shall repair any damage to the physical condition of the Hotel
                  caused by Purchaser, its agents or their respective employees,
                  and
                  (d) shall not be deemed to have assumed management responsibilities
                  of the current management of the Hotel prior to Closing by virtue
                  of their
                  presence at the Hotel. Purchaser shall indemnify Seller from and
                  against
                  any and all loss, damage, liability, cost or expense resulting
                  from the
                  violation or breach of any of the covenants set forth in clauses
                  (a)
                  through (d) of the preceding sentence, which indemnity shall survive
                  the
                  Closing or the termination of this Agreement for six (6) months.
                  All
                  expenses of Purchaser’s transition management team, including the cost of
                  rooms, food and beverage and other services, shall be paid by Purchaser;
                  provided, however, that Seller will endeavor to make available
                  to
                  Purchaser (at no cost or expense to Purchaser) up to three (3)
                  rooms for
                  Purchaser’s transition management team, subject to availability. Except as
                  expressly provided above and in Section 2.2,
                  Purchaser shall not, through its officers, employees, managers,
                  contractors, consultants, agents, representatives or any other
                  person
                  (including, without limitation, any person that conducted inspections
                  by
                  or on behalf of Purchaser), directly or indirectly, communicate
                  with any
                  Employees or any person representing any Employees involving any
                  matter
                  with respect to the Property, the Employees or this Agreement,
                  without
                  Seller’s prior consent, which consent may be withheld in Seller’s sole
                  discretion, unless such communication is arranged by Seller.
                  Notwithstanding anything contained in this Agreement to the contrary,
                  it
                  is hereby agreed that Purchaser shall only be entitled to communicate
                  directly with Seller’s General Manager, Director of Sales, Director of
                  Operations, and Chief Engineer, and with no other employee of the
                  Hotel
                  except that if Purchaser shall set up an employment center to rehire
                  employees, it shall be allowed to communicate with any hotel employee
                  solely for the purpose of applying for rehire. Seller agrees that
                  Purchaser shall be allowed to set up an employment center provided
                  that
                  such activity takes place no earlier than 72 hours prior to the
                  scheduled
                  Closing without the Seller’s expressed consent. Seller shall reasonably
                  cooperate with Purchaser in order to arrange communications, pursuant
                  to a
                  schedule to be reasonably agreed upon by the parties, between Purchaser
                  and the Employees in order to allow Purchaser to interview the
                  Employees
                  for possible continued employment, and Purchaser shall apprise
                  Seller from
                  time to time as to its plans for communicating with such
                  Employees.

              

      

      
        
          
          

        

        
          36

          
            

          

        

        
          
          

        

      

      

      
        	 	
                (d)

              	
                Representations
                  and Warranties.
                  In addition to the rights and obligations conveyed pursuant to
                  Section 2.3(c)
                  of
                  this Agreement, each of the parties hereto shall refrain from taking
                  any
                  action which knowingly violates any representation and/or warranty
                  contained in this Agreement. 

              

      

      

      
        	 	
                (e)

              	
                Existing
                  Franchise License Termination.
                  Seller shall cause Franchisor to terminate, effective on the Closing
                  Date,
                  the Existing Franchise License, which termination shall create
                  no
                  Purchaser liability as the result of the Existing Franchise License
                  or its
                  termination, including, without limitation, liability for the payment
                  of
                  any termination fee. Purchaser shall enter into a New Franchise
                  License on
                  the Closing Date. 

              

      

      

      
        	 	
                (f)

              	
                No
                  Material Changes.
                  From and after the date hereof and up to the Closing Date, Seller
                  shall
                  not, without the prior written consent of Purchaser, (i) make, cause
                  to be made, or permit to be made any material physical change to
                  the
                  Property or (ii) sell or otherwise dispose of any of the Property or
                  enter into any new tenant leases.

              

      

      

      ARTICLE
        7

      CONDEMNATION;
        RISK OF LOSS

      

      
        	
                7.1

              	
                Condemnation.
                  In the event of any actual or threatened taking, pursuant to the
                  power of
                  eminent domain, of all or any portion of the Real Property, or
                  any
                  proposed sale in lieu thereof, the Seller shall give written notice
                  thereof to the Purchaser promptly after the Seller learn or receive
                  notice
                  thereof. If all or a material portion of the Real Property is,
                  or is to
                  be, so condemned or sold, the Purchaser shall have the right to
                  terminate
                  this Agreement and promptly receive a full refund of the Deposit
                  and
                  interest thereon. If the Purchaser elects not to terminate this
                  Agreement,
                  all proceeds, awards and other payments arising out of such condemnation
                  or sale (actual or threatened) shall be paid or assigned, as applicable,
                  to the Purchaser at Closing. For the purposes hereof, a “material part”
                  shall be deemed to mean any taking (i) which causes a reduction in
                  the size of any of the buildings comprising the improvements or
                  materially
                  interferes with the present use and operation of any of such buildings,
                  or
                  (ii) which reduces the total area of the Land so that the land area
                  available for parking is insufficient to service the Hotel thereon
                  at
                  maximum capacity or to provide the number of parking spaces required
                  under
                  current law (considering any variance to which the Hotel is entitled),
                  or
                  (iii) which results in the elimination of the sole or any required
                  means of legal ingress and/or egress from the Property to public
                  roads, no
                  comparable, convenient, legal substitute ingress and/or egress
                  being
                  available.

              

      

      
        
          
          

        

        
          37

          
            

          

        

        
          
          

        

      

      

      
        	
                7.2

              	
                Risk
                  of Loss.
                  The risk of any loss or damage to the Property prior to the Closing
                  shall
                  remain upon the Seller. If any such loss or damage to the Property
                  is less
                  than ten percent (10%) of the value of the Improvements, Purchaser
                  shall
                  be obligated to purchase the Property in accordance the terms of
                  this
                  Agreement as if the loss or damage did not occur, provided that
                  such loss
                  and/or damage shall be fully insured or Seller, at Closing, shall
                  reimburse Purchaser for the balance of the cost to fully repair
                  such loss
                  and/or damage not fully covered by the proceeds of insurance, and
                  provided
                  that Seller shall have the obligation to pay the deductible on
                  any
                  insurance relating to the loss and/or damage, at Seller’s sole cost and
                  expense, and all insurance proceeds and rights to proceeds arising
                  out of
                  such loss and/or damage shall be paid or assigned, as applicable,
                  by
                  Seller to the Purchaser at Closing, except if Seller fails to comply
                  with
                  the foregoing requirements, Purchaser shall have the right, at
                  its sole
                  and absolute discretion, to terminate this Agreement and promptly
                  receive
                  its out-of pocket expenses incurred from the date of this Agreement
                  through the termination date. If any such loss or damage to more
                  than ten
                  percent (10%) of the value of the Improvements occurs prior to
                  Closing or
                  any loss or damage to the Property occurs prior to Closing and
                  is
                  uninsured or underinsured, the Purchaser shall have the right,
                  at its sole
                  and absolute discretion, to terminate this Agreement. If the Purchaser
                  elects not to terminate this Agreement or in the event Closing
                  occurs
                  following any loss or damage, Seller shall have the obligation
                  to pay the
                  deductible, at its sole cost and expense, for all insurance covering
                  such
                  loss and/or damage, and all insurance proceeds and rights to proceeds
                  arising out of such loss or damage shall be paid or assigned, as
                  applicable, to the Purchaser at Closing.

              

      

      
        
          
          

        

        
          38

          
            

          

        

        
          
          

        

      

      

      ARTICLE
        8

      LIABILITY
        OF PURCHASER; INDEMNIFICATION BY SELLER;TERMINATION
        RIGHTS

      

      
        	
                8.1

              	
                Liability
                  of Purchaser.
                  Except for any obligation expressly assumed or agreed to be assumed
                  by the
                  Purchaser hereunder and in the Assignment and Assumption Agreement,
                  the
                  Purchaser does not assume any obligation of the Seller or any liability
                  for claims arising out of any occurrence prior to Closing. Likewise,
                  the
                  Seller does not assume and shall not be liable for any obligation
                  of the
                  Purchaser or any liability for claims arising out of any occurrence
                  subsequent to Closing. 

              

      

      

      
        	
                8.2

              	
                Indemnification
                  by Seller.
                  The Seller hereby indemnifies and holds the Purchaser harmless
                  from and
                  against any and all claims, costs, penalties, damages, losses,
                  liabilities
                  and expenses, subject to Section 
                  10.11
                  that may at any time be incurred by the Purchaser, whether before
                  or after
                  Closing, arising out of the operations of the Hotel or use of the
                  Property
                  prior to the Closing Date and/or as a result of any breach or violation
                  by
                  the Seller of any of its representations, warranties, covenants
                  or
                  obligations set forth herein or in any other document delivered
                  by the
                  Seller pursuant hereto.

              

      

      

      
        	
                8.3

              	
                Termination
                  by Purchaser.
                  If any material condition set forth in this Agreement cannot or
                  will not
                  be satisfied immediately prior to Closing, and the Seller fails
                  to satisfy
                  such condition within ten (10) days after notice thereof from the
                  Purchaser, the Seller defaults in performing any of its material
                  obligations under this Agreement (including its obligation to sell
                  the
                  Property), and the Seller fails to cure any such default within
                  ten (10)
                  days after notice thereof from the Purchaser (except for Seller’s
                  obligation to sell the Property at the Closing in which case no
                  notice to
                  cure period shall apply), or upon the occurrence of any other event
                  that
                  would entitle the Purchaser to terminate this Agreement and its
                  obligations hereunder, the Purchaser, at its option, shall elect
                  either
                  (a) to terminate this Agreement and receive a reimbursement from
                  Seller for Purchaser’s actual out-of-pocket costs (including, without
                  limitation, reasonable attorney fees) incurred for due diligence
                  and
                  activities relating to the enforcement of Purchaser’s rights under this
                  Agreement from the Agreement Date through the date on which it
                  receives
                  payment in full from Seller, and all other rights and obligations
                  of the
                  Seller and the Purchaser hereunder shall terminate immediately,
                  or
                  (b) to waive its right to terminate and, instead, to proceed to
                  Closing, or (c) to seek specific performance of the consummation
                  of the
                  transaction contemplated herein.

              

      

      
        
          
          

        

        
          39

          
            

          

        

        
          
          

        

      

      

      
        	
                8.4

              	
                Termination
                  by Seller.
                  If, prior to Closing, the Purchaser defaults in performing any
                  of its
                  material obligations under this Agreement and the Purchaser fails
                  to cure
                  any such default within ten (10) days after notice thereof from
                  the Seller
                  (except for Purchaser’s failure to close hereunder, in which case no
                  notice and cure period shall apply) and Closing does not occur
                  as a result
                  of Purchaser’s default, then the Seller’s sole remedy for such default
                  shall be to terminate this Agreement.

              

      

      

      
        	
                8.5

              	
                Survival
                  of Article VIII.
                  The provisions of this Article VIII
                  shall survive the Closing or earlier termination of this
                  Agreement.

              

      

      

      ARTICLE
        9

      ESCROW
        TERMS

      

      
        	
                9.1

              	
                Any
                  notice to or demand upon the Title Company shall be in writing
                  and shall
                  be sufficient only if received by the Title Company within the
                  applicable
                  time periods set forth herein, if any. Notices to or demands upon
                  the
                  Title Company shall be sent by United States mail, registered or
                  certified, return receipt requested, postage prepaid, by facsimile
                  transmission with printed confirmation, or overnight courier service,
                  with
                  respect for next day delivery, to the address set forth in Section
                  10.9 of
                  this Agreement, or served personally upon the Title Company with
                  receipt
                  acknowledged in writing by the Title Company. Notices from the
                  Title
                  Company to Seller or Buyer shall be mailed to them in accordance
                  with
                  Section 10.9 of this Agreement.

              

      

      

      
        	
                9.2

              	
                If
                  at any time the Title Company is uncertain of its duties hereunder
                  or if
                  the Title Company for any other reason is no longer willing to
                  serve as
                  escrow agent, the Title Company may, on notice to the parties,
                  take such
                  affirmative steps as it may, at its option, elect in order to terminate
                  its duties as the Title Company.. Upon the taking by the Title
                  Company of
                  such action described, the Title Company shall be released of and
                  from all
                  liability hereunder. 

              

      

      
        
          
          

        

        
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                9.3

              	
                The
                  Title Company shall not incur any liability in acting upon any
                  signature,
                  notice, demand, request, waiver, consent, receipt or other paper
                  or
                  document believed by the Title Company to be genuine. The Title
                  Company
                  may assume that any person purporting to give it any notice on
                  behalf of
                  any party in accordance with the provisions hereof has been duly
                  authorized to do so, or is otherwise acting or failing to act under
                  this
                  Section except in the case of the Title Company's gross negligence
                  or
                  willful misconduct. 

              

      

      

      
        	
                9.4

              	
                The
                  terms and provisions of this Article shall create no right in any
                  person,
                  firm or corporation other than the parties and their respective
                  successors
                  and permitted assigns and no third party shall have the right to
                  enforce
                  or benefit from the terms hereof.

              

      

      

      
        	
                9.5

              	
                The
                  Title Company has executed this Agreement for the sole purpose
                  of agreeing
                  to act as such in accordance with the terms of this
                  Agreement.

              

      

      

      ARTICLE
        10

      MISCELLANEOUS
        PROVISIONS

      

      
        	
                10.1

              	
                Completeness;
                  Modification.
                  This Agreement constitutes the entire agreement between the parties
                  hereto
                  with respect to the transactions contemplated hereby and supersedes
                  all
                  prior discussions, understandings, agreements and negotiations
                  between the
                  parties hereto. This Agreement may be modified only by a written
                  instrument duly executed by the parties
                  hereto.

              

      

      

      
        	
                10.2

              	
                Assignments.
                  The Purchaser may assign its rights hereunder to Hersha Hospitality
                  Trust
                  (“HT”) or any affiliate of HT or of Purchaser (meaning at least 50%
                  common
                  ownership) without the consent of the Seller. No such assignment
                  shall
                  relieve the Purchaser of any of its obligations and liabilities
                  hereunder.
                  All other assignments shall require the consent of the
                  Seller.

              

      

      

      
        	
                10.3

              	
                Successors
                  and Assigns.
                  The benefits and burdens of this Agreement shall inure to the benefit
                  of
                  and bind the Purchaser and the Seller and their permitted successors
                  and
                  assigns.

              

      

      
        
          
          

        

        
          41

          
            

          

        

        
          
          

        

      

      

      
        	
                10.4

              	
                Days.
                  If any action is required to be performed, or if any notice, consent
                  or
                  other communication is given, on a day that is a Saturday or Sunday
                  or a
                  legal holiday in the jurisdiction in which the action is required
                  to be
                  performed or in which is located the intended recipient of such
                  notice,
                  consent or other communication, such performance shall be deemed
                  to be
                  required, and such notice, consent or other communication shall
                  be deemed
                  to be given, on the first business day following such Saturday,
                  Sunday or
                  legal holiday. Unless otherwise specified herein, all references
                  herein to
                  a “day” or “days” shall refer to calendar days and not business
                  days.

              

      

      

      
        	
                10.5

              	
                Governing
                  Law.
                  This Agreement and all documents referred to herein shall be governed
                  by
                  and construed and interpreted in accordance with the laws of the
                  State of
                  New York.

              

      

      

      
        	
                10.6

              	
                Counterparts.
                  To facilitate execution, this Agreement may be executed in as many
                  counterparts as may be required. It shall not be necessary that
                  the
                  signature on behalf of both parties hereto appear on each counterpart
                  hereof. All counterparts hereof shall collectively constitute a
                  single
                  agreement.

              

      

      

      
        	
                10.7

              	
                Severability.
                  If any term, covenant or condition of this Agreement, or the application
                  thereof to any person or circumstance, shall to any extent be invalid
                  or
                  unenforceable, the remainder of this Agreement, or the application
                  of such
                  term, covenant or condition to other persons or circumstances,
                  shall not
                  be affected thereby provided the parties realize the material benefits
                  of
                  this Agreement, and each term, covenant or condition of this Agreement
                  shall be valid and enforceable to the fullest extent permitted
                  by
                  law.

              

      

      

      
        	
                10.8

              	
                Costs.
                  Regardless of whether Closing occurs hereunder, and except as otherwise
                  expressly provided herein, each party hereto shall be responsible
                  for its
                  own costs in connection with this Agreement and the transactions
                  contemplated hereby, including without limitation fees of attorneys,
                  engineers and accountants.

              

      

      

      
        	
                10.9

              	
                Notices.
                  All notices, requests, demands and other communications hereunder
                  shall be
                  in writing and shall be delivered by hand, transmitted by facsimile
                  transmission, sent prepaid by Federal Express (or a comparable
                  overnight
                  delivery service) or sent by the United States mail, certified,
                  postage
                  prepaid, return receipt requested, at the addresses and with such
                  copies
                  as designated below. Any notice, request, demand or other communication
                  delivered or sent in the manner aforesaid shall be deemed given
                  or made
                  (as the case may be) when actually delivered to (or the date delivery
                  is
                  refused by) the intended
                  recipient.

              

      

      
        
          
          

        

        
          42

          
            

          

        

        
          
          

        

      

      

      
        	
                If
                  to the Purchaser:

              	 	
                Seaport
                  Hospitality, LLC

                510
                  Walnut Street, 9th
                  Floor

                Philadelphia,
                  PA 19106

                 

                Attn:
                  Ashish R. Parikh

                Telephone:
                  215/238-1046

                Facsimile:
                  215/238-0157

              
	 	 	 
	
                With
                  a copy to:

              	 	
                Franklin
                  Firm, LLP

                Penn
                  Mutual Towers

                510
                  Walnut Street, 9th
                  Floor

                Philadelphia,
                  PA 19106

                Attn:
                  Lok Mohapatra, Esq.

                Telephone:
                  215-238-1045

                Facsimile:
                  267-238-1874

              
	 	 	 
	
                If
                  to the Seller (BCM, LLC):

              	 	
                BCM,
                  LLC

                44
                  Hersha Drive

                Harrisburg,
                  PA 17102

                Attn:
                  Bharat C. Mehta

                Telephone:
                  (717)236-4400 

                Facsimile:
                  (717)774-7383

              
	 	 	 
	
                With
                  a copy to:

              	 	
                Mayur
                  Patel, Esquire

                c/o
                  Hersha Group

                44
                  Hersha Drive

                Harrisburg,
                  PA 17102

                Phone:
                  (717) 236-4400

                Fax:
                  (717) 774-7383

              
	 	 	 
	
                If
                  to Seller (HPS Seaport, LLC):

              	 	
                HPS
                  Seaport, LLC

                44
                  Hersha Drive

                Harrisburg,
                  PA 17102

                Attn:
                  Hasu P. Shah

                Phone:
                  (717) 236-4400

                Fax:
                  (717) 774-7383

              
	
                With
                  a Copy to:

              	 	
                Mayur
                  Patel, Esquire

                c/o
                  Hersha Group

                44
                  Hersha Drive

                Harrisburg,
                  PA 17102

                Phone:
                  (717) 236-4400

                Fax:
                  (717) 774-7383

              
	 	 	 
	
                If
                  to the Title Company:

              	 	
                Summit
                  Associates.

                100
                  Lafayette Street

                Third
                  Floor

                New
                  York, New York 10013

                Telephone:
                  (212) 608-5866

                E-mail:
                  lana.choy@summitassociates.net

              

      

       

      
        
          
          

        

        
          43

          
            

          

        

        
          
          

        

      

      Or
        to
        such other address as the intended recipient may have specified in a notice
        to
        the other party. Any party hereto may change its address or designate different
        or other persons or entities to receive copies by notifying the other party
        and
        the Escrow Agent in a manner described in this Section.

      

      
        	
                10.10

              	
                Incorporation
                  by Reference.
                  All of the exhibits attached hereto are by this reference incorporated
                  herein and made a part hereof.

              

      

      

      
        	
                10.11

              	
                Survival.
                  All of the representations, warranties, covenants and agreements
                  of the
                  Seller and the Purchaser made in, or pursuant to, this Agreement
                  shall
                  survive for a period of twelve (12) months following the Closing
                  Date,
                  except as otherwise expressly provided in this Agreement, and shall
                  not
                  merge into the Deed or any other document or instrument executed
                  and
                  delivered in connection herewith.

              

      

      

      
        	
                10.12

              	
                Further
                  Assurances.
                  The Seller and the Purchaser each covenant and agree to sign, execute
                  and
                  deliver, or cause to be signed, executed and delivered, and to
                  do or make,
                  or cause to be done or made, upon the written request of the other
                  party,
                  any and all agreements, instruments, papers, deeds, acts or things,
                  supplemental, confirmatory or otherwise, as may be reasonably required
                  by
                  either party hereto for the purpose of or in connection with consummating
                  the transactions described
                  herein.

              

      

      
        
          
          

        

        
          44

          
            

          

        

        
          
          

        

      

      

      
        	
                10.13

              	
                No
                  Partnership.
                  This Agreement does not and shall not be construed to create a
                  partnership, joint venture or any other relationship between the
                  parties
                  hereto except the relationship of Seller and Purchaser specifically
                  established hereby.

              

      

      

      
        	
                10.14

              	
                Time
                  of Essence.
                  Time is of the essence with respect to every provision
                  hereof.

              

      

      

      
        	
                10.15

              	
                Confidentiality.
                  Purchaser and Seller and their representatives, including any
                  professionals representing the Purchaser and Seller, shall keep
                  the
                  material business terms of this Agreement strictly confidential,
                  except to
                  the extent disclosure is compelled by law, and then only to the
                  extent of
                  such compulsion. 

              

      

      

      
        	
                10.16

              	
                Publicity.
                  The parties agree that no party shall contact or conduct negotiations
                  with
                  public officials, make any public pronouncements, issue press releases
                  or
                  otherwise furnish information regarding the business terms of this
                  Agreement to a third party without obtaining the prior written
                  consent of
                  all parties. No party, or its employees with knowledge of the transactions
                  contemplated herein, shall trade in the securities of any affiliate
                  of
                  Purchaser until a public announcement of the transactions contemplated
                  by
                  this Agreement has been made public. Notwithstanding anything in
                  Section 10.15
                  and Section 10.16
                  to
                  the contrary, the Purchaser and Seller shall have the right to
                  report any
                  information relating to this transaction required to be reported
                  to any
                  governmental entity, in connection with tax reporting information
                  filed by
                  the Purchaser or Seller with the governmental entity or as may
                  be required
                  by any other governmental regulatory entity without obtaining Seller’s or
                  Purchaser’s consent.

              

      

      

      
        	
                10.17

              	
                Brokers.
                  Seller and Purchaser hereby represent and warrant each to other
                  that,
                  except as set forth below, neither has discussed this Agreement
                  or the
                  subject matter hereof with any real estate broker or salesman so
                  as to
                  create any legal right in any such broker or salesman to claim
                  a real
                  estate commission or similar fee with respect to the purchase or
                  sale of
                  the Property contemplated by this Agreement. Purchaser and Seller
                  hereby
                  indemnify each other against, and agree to defend and hold the
                  other
                  harmless from any and all claims for any real estate commission
                  or similar
                  fees arising out of or in any way connected with any claimed agency
                  relationship with the indemnitor and relating to the purchase and
                  sale of
                  the Property contemplated by this Agreement.

              

      

      

      

      [The
        remainder of the page is intentionally left
        blank]

      
        
          
          

        

        
          45

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF,
        the
        Seller and the Purchaser, intending to be legally bound, have caused this
        Agreement to be executed in their names by their respective duly-authorized
        representatives.

       

      
        
          
            
              
                	 	
                        SELLER:

                      
	 	 	 
	 	
                        BCM,
                          LLC, a New York 

                      
	 	
                        limited
                          liability company

                      
	 	 	 
	 	
                        By:

                      	 
	 	
                        Name:
                          Bharat C. Mehta

                      
	 	
                        Title:
                          Member

                      
	 	 
	 	 
	 	
                        SELLER:

                      
	 	 	 
	 	
                        HPS
                          Seaport, LLC, a New York

                      
	 	
                        limited
                          liability company

                      
	 	 	 
	 	
                        By:

                      	 
	 	
                        Name:
                          Hasu P. Shah

                      
	 	
                        Title:
                          Member

                      
	 	 	 
	 	 	 
	 	
                        PURCHASER:

                      
	 	 	 
	 	
                        SEAPORT
                          HOSPITALITY, LLC, 

                      
	 	
                        a
                          New York limited liability company

                      
	 	 	 
	 	 	 
	 	 	
                        By:

                      	 
	 	 	
                        Name:Ashish
                          Parikh

                      
	 	 	
                        Title:
                          Secretary and
                          Treasurer

                      

              

            

          

        

      

       

      
        
          
          

        

        
          46

          
            

          

        

        
          
          

        

      

      EXECUTION
        BY TITLE COMPANY

      

      The
        Title
        Company executes this Agreement for the purposes of acknowledging its Agreement
        to serve as escrow agent in accordance with the terms of the Agreement.

      

      
        	 	 

	 	 	 
	 	 	 
	 	
                By:

              	 

      

       

    

     

    
      48

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