Document:

Form of Advisory Agreement

 Exhibit 10.2 
  
 FORM OF 
 ADVISORY AGREEMENT AMONG 
 LIGHTSTONE VALUE PLUS REAL ESTATE INVESTMENT TRUST, INC., 
 LIGHTSTONE VALUE PLUS REIT LP 
 and

 LIGHTSTONE VALUE PLUS REIT LLC 
  
 This Advisory Agreement (this “Agreement”) dated as of
[                    ], 2005 is among Lightstone Value Plus Real Estate Investment Trust, Inc., a Maryland corporation (the “Company”),
Lightstone Value Plus REIT LP, a Delaware limited partnership (the “OP”), and Lightstone Value Plus REIT LLC, a Delaware limited liability company (the “Advisor”). The Company and the OP are sometimes referred to herein
collectively as the “Advisees” and each individually as an “Advisee.” 
  
 W I T N E S S E T H: 
  
 WHEREAS, the Company is a Maryland corporation created in accordance with applicable provisions of the Maryland General Corporation Law, as amended from time to time (the “Maryland GCL”); and 
  
 WHEREAS, the purposes of the Company are, as determined from time to time by
the board of directors of the Company (the “Board of Directors”), to engage in any lawful business or activity for which a corporation may be created under the Maryland GCL; and 
  
 WHEREAS, the Company is the general partner of the OP; and 
  
 WHEREAS, the Company desires, on its own behalf and as general partner of the OP, to avail itself of the experience, sources
of information, advice and assistance of the Advisor and to have the Advisor undertake the duties and responsibilities hereinafter set forth, on behalf of and subject to the supervision of the Board of Directors, all as provided herein; and

  
 WHEREAS, the Advisor is willing to render such services,
subject to the supervision of the Board of Directors, on the terms and conditions hereinafter set forth; 
  
 NOW, THEREFORE, in consideration of the mutual covenants herein contained, IT IS AGREED as follows: 
  
 1. Definitions. Capitalized terms used but not defined herein shall
have the meaning ascribed to them in the Company’s Charter (as herein defined), and the following terms, as used herein, shall have the meanings set forth below: 
  
 (a) “Acquisition Expenses” shall mean expenses related to the Advisee’s selection of,
and investment in, real properties and mortgage investments and other investments, whether or not acquired or made, including but not limited to advertising costs, brokerage fees, environmental, engineering and other due diligence expenses, legal
fees and expenses, travel and communications expenses, cost of appraisals, accounting fees and expenses, title insurance and miscellaneous other expenses. 
  
 (b) “Acquisition Fee” shall have the meaning set forth in Section 11(a)(i). 
  
 (c) “Affiliate” means a Person who is (i)
in the case of an individual, any relative of such Person, (ii) any officer, director, trustee, partner, manager, employee or holder of ten percent (10%) or more of any class of the voting securities of or equity interest in such Person; (iii) any
corporation, partnership, limited liability company, trust or other entity controlling, controlled by or under common control with such Person; or (iv) any officer, director, trustee, partner, manager, employee or holder of ten percent (10%) or more
of the outstanding voting securities of any corporation, partnership, limited liability company, trust or other entity controlling, controlled by or under common control with such Person. For purposes of this definition, 

 
the term “controls,” “is controlled by,” or “is under common control with” shall mean the possession, direct or indirect, of
the power to direct or cause the direction of the management and policies of an entity, whether through the ownership of voting rights, by contract or otherwise. 
  
 (d) “Asset Management Fee” shall have the meaning set forth in Section 11(a)(ii).

  
 (e) “Average Invested
Assets” shall mean the average, at the end of each calendar month during the calendar quarter in respect of which an Asset Management Fee is being calculated, of the aggregate book value of the Advisees’ assets invested in equity
interests in and loans secured by real estate, before reserves for depreciation or bad debt or other similar non-cash reserves. 
  
 (f) “Board of Directors” shall have the meaning set forth in the recitals hereto. 
  
 (g) “Cause” shall mean (x) fraud, criminal
conduct, willful misconduct or illegal or negligent breach of fiduciary duty by the Advisor or a breach of this Agreement by the Advisor; or (y) if any of the following events occur: (i) the Advisor shall violate any material provision of this
Agreement, and after written notice of such violation, shall not cure such default within 30 days or have begun action within 30 days to cure the default which shall be completed with reasonable diligence, (ii) the Advisor shall be adjudged bankrupt
or insolvent by a court of competent jurisdiction, or an order shall be made by a court of competent jurisdiction for the appointment of a receiver, liquidator, or trustee of the Advisor, for all or substantially all of its property by reason of the
foregoing, or if a court of competent jurisdiction approves any petition filed against the Advisor for reorganization, and such adjudication or order shall remain in force or unstayed for a period of 30 days, (iii) the Advisor shall institute
proceedings for voluntary bankruptcy or shall file a petition seeking reorganization under the federal bankruptcy laws, or for relief under any law for relief of debtors, or shall consent to the appointment of a receiver for itself or for all or
substantially all of its property, or shall make a general assignment for the benefit of its creditors, or shall admit in writing its inability to pay its debts, generally, as they become due. 
  
 (h) “Change of Control” shall mean a change
of control of the Company of a nature that would be required to be reported in response to the disclosure requirements of Schedule 14A of Regulation 14A promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), as enacted and in force on the date hereof, whether or not the Company is then subject to such reporting requirements; provided, however, that, without limitation, a Change of Control shall be deemed to have occurred if: (i) any
“person” (within the meaning of Section 13(d) of the Exchange Act, as enacted and in force on the date hereof) is or becomes the “beneficial owner” (as that term is defined in Rule 13d-3, as enacted and in force on the date
hereof, under the Exchange Act) of securities of the Company representing 9.8% or more of the combined voting power of the Company’s securities then outstanding; (ii) there occurs a merger, consolidation or other reorganization of the Company
which is not approved by the Board of Directors; (iii) there occurs a sale, exchange, transfer or other disposition of substantially all of the assets of the Company to another entity, which disposition is not approved by the Board of Directors; or
(iv) there occurs a contested proxy solicitation of the Shareholders of the Company that results in the contesting party electing candidates to a majority of the Board of Directors’ positions next up for election. 
  
 (i) “Charter” shall mean the Articles of
Incorporation of the Company dated as of 30, 2004, as amended from time to time. 
  
 (j) “Cumulative Non-Compound Return” shall mean, for any period for which a calculation thereof is being paid, the
percentage resulting from dividing (i) the total distributions paid on each distribution payment date during such period by (ii) the product of (x) the daily average adjusted investor capital for such period and (b) the number of years (including
fractional years) elapsed during such period (based on a year of 365 days). 
  
 (k) “Election Notice” shall have the meaning set forth in Section 13(b). 
  
 (l) “Funds From Operations” shall mean net income (computed in accordance with GAAP), excluding gains or losses from debt
restructuring and sales of properties, plus depreciation of real property and amortization, and after adjustments for unconsolidated partnerships and joint ventures. 
  

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 (m) “Funds From Operations Per Weighted Average Share” shall mean the
amount equal to four (4) times the Funds From Operations per weighted average Share for the Company for the quarter in which an Election Notice is delivered, based on and as described in the quarterly report of the Company delivered to its
stockholders for such quarter. 
  
 (n)
“GAAP” shall mean United States generally accepted accounting principals, consistently applied. 
  
 (o) “Good Reason” shall mean, with respect to the termination of this Agreement, (x) any failure to obtain a satisfactory
agreement from any successor to an Advisee to assume and agree to perform such Advisee’s obligations under this Agreement; or (y) any material breach of this Agreement of any nature whatsoever by an Advisee. 
  
 (p) “Independent Director” shall have the
meaning set forth in the By-laws of the Company, as amended from time to time. 
  
 (q) “Initial Term” shall have the meaning set forth in Section 17(a). 
  
 (r) “Partnership Agreement” shall mean the
Agreement of Limited Partnership of the OP dated as of 30, 2004, as amended and restated from time to time. 
  
 (s) “Person” shall mean an individual, corporation, partnership, joint venture, association, company (whether of limited
liability or otherwise), trust, bank or other entity, or government or any agency or political subdivision of a government. 
  
 (t) “Preferred Return” shall mean the receipt by the stockholders of the Company of (i) a Cumulative Non-Compound Return
of 7% per year on such stockholders’ net investment, and (ii) the amount of such net investment. 
  
 (u) “Prospectus” shall mean the final prospectus of the Company in connection with the initial registration of the Shares
filed with the SEC on Form S-11, as amended and supplemented from time to time. 
  
 (v) “SEC” shall mean the United States Securities and Exchange Commission. 
  
 (w) “Share” shall mean a share of the
Common Stock, par value $0.01, of the Company. 
  
 (x) “Special Limited Partner” shall have the meaning set forth in the Partnership Agreement. 
  
 (y) “Special Liquidation Distribution” shall mean the liquidation distributions received by the Special Limited Partner
pursuant to Section 13.2 of the Partnership Agreement. 
  
 (z) “Special Termination Distribution” shall mean the termination distribution set forth in Section 13.3 of the Partnership Agreement. 
  
 (aa) “Total Operating Expenses” of a Person means the aggregate of all expenses paid or
incurred by such Person, but excluding organization and offering expenses, interest payments, taxes, non-cash expenditures, any Acquisition Fee or other acquisition expenses. 
  
 2. Duties of Advisor. The Company, on its own behalf, and as general partner of the OP, hereby retains and appoints
the Advisor as the advisor of the Company and the OP to perform the services hereinafter set forth, and the Advisor hereby accepts such appointment, all subject to the terms and conditions hereinafter set forth. In the performance of this
undertaking, subject to the supervision of the Board of Directors and consistent with the provisions of the Company’s Charter and the Agreement of Limited Partnership of the OP (the “Partnership Agreement”), the Advisor shall devote
sufficient resources to the administration of the Company to discharge is obligations hereunder and shall: 
  
 a. obtain for the Advisees, furnish and/or supervise the services necessary to perform any ministerial functions in connection with the
management of the day-to-day operations of the Advisees; 
  

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 b. use its best efforts to seek out, present and recommend to the Advisees, whether
through its own efforts or those of third parties retained by it, suitable investment opportunities that are consistent with the Advisees’ respective investment objectives and policies and acquisition strategy and objectives, as adopted by the
Board of Directors from time to time, and negotiate on behalf of the Advisees with respect to potential investments or the disposition thereof; 
  
 c. exercise absolute discretion, subject to the Board of Directors’ review, in decisions to originate, acquire, retain or sell real
properties, provided, that, the Advisor may acquire on behalf of the Advisees any real property with purchase price that is less than $15,000,000, or finance such an acquisition on the Advisees’ behalf, without the prior approval
of the Board of Directors if and to the extent that: 
  
 i. the proposed acquisition or financing would not, if consummated, violate or conflict with the investment guidelines of the Advisees as set forth in the Prospectus; 
  
 ii. the proposed acquisition or financing would not, if consummated, violate the restriction set forth in
section 2(f) below; and 
  
 iii. the
consideration proposed to be paid for such real property does not exceed the fair market value of such property, as determined by a qualified independent real estate appraiser selected in good faith by the Advisor and acceptable to the Independent
Directors; 
  
 d. recommend investment
opportunities consistent with the Advisees’ respective investment objectives and policies and negotiate on behalf of the Advisees with respect to potential investments or the disposition thereof; 
  
 e. structure the terms and conditions pursuant to which
acquisitions of properties will be made, subject to the Board of Directors’ review; 
  
 f. arrange for financing and refinancing of properties, subject to the Board of Directors’ prior approval if such financing or
refinancing, when consummated causes the total leverage on each such property or on all such properties in the aggregate to exceed 75% of such property’s or properties’, as the case may be, fair market value; 
  
 g. obtain for the Advisees such other services as may be
required in acquiring or disposing of investments, disbursing and collecting the funds of the Advisees, paying the debts and fulfilling the obligations of the Advisees, and handling, prosecuting and settling any claims of the Advisees; 

 
 h. obtain for the Advisees such services as may be
required for property management, leasing, mortgage brokerage and servicing, and other activities relating to the investment portfolio of the Advisees; 
  
 i. supervise the servicing of the Advisees’ loan portfolios; 
  
 j. administer the Advisee’s respective bookkeeping and accounting functions, and prepare, or cause to
be prepared, statements and other relevant information for distribution to stockholders or partners, as the case may be, including annual and quarterly reports and any filings required by regulatory authorities; 
  
 k. monitor operations and expenses of the Advisees;

  
 l. from time to time, or as requested by the
Board of Directors, make reports to the Advisees as to its performance of the foregoing services; 
  
 m. perform any other powers of the Board of Directors or the Company (as general partner of the OP) which (with respect to the Company)
are set forth in the Charter and the Partnership Agreement, as applicable, which may be delegated to it by the Board of Directors from time to time; 
  
 n. render such other services as the Board of Directors deems appropriate; and 
  
 o. do all things necessary to assure its ability to render
the services contemplated herein. 
  
 3. Fiduciary
Relationship. The Advisor, as a result of its relationship with the Advisees pursuant to this Agreement, stands in a fiduciary relationship with the stockholders of the Company and the partners of the OP. 
  

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 4. No Partnership or Joint Venture. The Advisees and the Advisor are not partners or joint
venturers with each other and nothing herein shall be construed to make them partners or joint venturers or impose any liability as such on either of them. 
  
 5. Records. At all times, the Advisor shall keep books of account and records relating to services performed hereunder, which books of account and
records shall be accessible for inspection by the Advisees and the Advisee’s appointees at any time during the ordinary business hours of the Advisor. 
  
 6. REIT Qualification; Other Limitations on Advisor Actions. Anything else in this Agreement to the contrary notwithstanding, the Advisor shall
refrain from any action which, in its sole judgment made in good faith, or, in the judgment of the Board of Directors provided that the Board of Directors give the Advisor written notice to such effect, would (a) adversely affect the status of the
Company as a real estate investment trust pursuant to Section 856 of the Code; (b) cause the Advisees to be classified as an “investment company” for purposes of the Investment Company Act of 1940, as amended, (c) cause the OP to be
classified other than as a partnership for purposes of the Code; (d) violate any law, rule, regulation or statement of policy of any governmental body or agency having jurisdiction over the Advisees or over their securities, or (e) be prohibited by
the Company’s Charter or the Partnership Agreement of the OP. 
  
 7. Bank Accounts. The Advisor may establish and maintain one or more bank accounts in the name of the Advisees or in its own name as agent for the Advisees and may collect and deposit in and disburse from any such account, any money
on behalf of the Advisees, under such terms and conditions as the Board of Directors may approve, provided that no funds in such account shall be commingled with funds of the Advisor. From time to time and upon appropriate request, the Advisor shall
render appropriate accounting of such collections and payments to the Board of Directors and the auditors of the Advisees. 
  
 8. Bond. If required by the Board of Directors, the Advisor will maintain a fidelity bond with a responsible surety company in such amounts as may
be required by the Board of Directors, covering all members or partners thereof together with employees and agents of the advisor handling funds of the Advisees and investment documents or records pertaining to investments of the Advisees. Such
bonds shall inure to the benefit of the Advisees in respect of losses from acts of such partners, employees and agents through theft, embezzlement, fraud, negligence, error or omission or otherwise. The premiums on such bonds shall be paid by the
Advisees. 
  
 9. Information Furnished to Advisor. The
Board of Directors shall, at all times, keep the Advisor fully informed with regard to the investment policies of the Advisees, including any specific types of real properties, mortgage investments and mortgage securities desired, and any criteria
or conditions established by the Board of Directors as to whether the Advisees will make a particular investment, the capitalization policy of the Advisees (including the policy with regard to the incurrence of indebtedness by the Advisees) and
their intentions as to the future operations of the Advisees. In particular, the Board of Directors shall notify the Advisor promptly of their intention to either sell or otherwise dispose of any of the Advisees’ investments, to make any new
investment, to incur any indebtedness or to issue any additional shares of Common Stock or Preferred Stock of the Company or any partnership interests in the OP. 
  
 10. Consultation and Advice. In addition to the services described above, the Advisor shall consult with the Board of
Directors and shall, at the request of the Board of Directors of the Company, furnish advice and recommendations with respect to other aspects of the business and affairs of the Advisees. 
  
 11. Fees and Other Compensation of the Advisor. 
  
 a. The Advisor or its designees shall be entitled to receive from the respective Advisees (except those
payable by others as noted below) the following fees and other compensation, which shall be paid to the Advisor by the OP on its own behalf or on behalf of the Company: 
  
 (i) Acquisition Fee. The Advisor or its Affiliates
shall receive an acquisition fee (the “Acquisition Fee”) of two percent and three quarters (2.75%) of the gross contract purchase price of each property 

  

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acquired by an Advisee, including the amount of any mortgage securing such property, payable by the OP on behalf of the applicable Advisee upon consummation
of the investment; provided, that, the Acquisition Fee, together with any and all Acquisition Expenses and other acquisition fees paid to the Advisor or to any third parties, whether or not affiliated with the Advisor or the Advisees,
shall not exceed, in the aggregate, six percent (6.0%) of the gross contract purchase price of a particular property, including the amount of any mortgage securing such property. In the event that such acquisition fees and expenses, including the
Acquisition Fee, exceed such limitation, the Acquisition Fee shall be reduced by such excess amount. 
  
 (ii) Asset Management Fee. The Advisor or its Affiliates shall receive an asset
management fee (the “Asset Management Fee”) in an amount equal to fifty five basis points (0.55%) per annum of Average Invested Assets. The Asset Management Fee is payable quarterly, in arrears at the end of each calendar quarter,
in an amount of 0.1375% of Average Invested Assets in the immediately preceding quarter. 
  
 (iii) Fees for Additional Services. Subject to Section 15 below, the Advisor shall
be entitled to receive compensation for any additional services requested from time to time by the Advisees on separate agreed-upon terms, subject to approval by a majority of the Independent Directors as being fair and reasonable to the Company.

  
 b. No Property
Disposition Fee. The Advisor shall not be entitled to receive any fee in connection with property sold or otherwise disposed of by any Advisee, although independent third parties may be compensated in such
circumstances. 
  
 c.
Stockholder/Partner Interests Distributions. The Advisor shall be entitled to receive distributions from the Advisees in respect of any shares of Common Stock of the Company or partner interests of the OP which it holds, along
with the other holders of such shares or interests. 
  
 12.
Statements. Prior to the payment of any fees hereunder, the Advisor shall furnish to the Advisees a statement showing the computation of the fees, if any, payable under Section 11 hereof. 
  
 13. Business Combination of the Company and the Advisor. 

 
 a. The Company shall have the option at any time, after
the initial date of effectiveness of the Prospectus upon prior written notice, during the term of this Agreement without any consent of the Advisor, the Board of Directors or the Company’s stockholders to cause the business conducted by the
Advisor (including, in such event, all of its assets) to be acquired by or consolidated into the Company. The Advisor and/or its members or stockholders will receive in connection with such acquisition and in exchange for terminating this Agreement
and the release or waiver of all fees (including any fees that have accrued during the term of this Agreement) payable under the provisions of this Agreement until its stated termination, but not paid, that number of Shares determined in accordance
with subsection (b) below. The Company will be obligated to pay any fees accrued under this Agreement for services rendered through the closing of such acquisition. 
  
 b. The number of Shares to be issued by the Company to the Advisor in the event of a transaction of the type
described in subsection (a) above shall be determined as follows. The Company shall first send notice (the “Election Notice”) to the Advisor of its election to proceed with such a transaction. Next, the net income of the Advisor,
for the six month period immediately preceding the month in which the Election Notice is delivered, as determined by an independent audit conducted in accordance with GAAP, shall be annualized. The Advisor shall bear the cost of any such audit. Such
amount shall than be multiplied by nine-tenths (0.90) and then divided by the Funds From Operations Per Weighted Average Share. The resulting quotient shall constitute the number of Shares to be issued by the Company to the Advisor or its members or
stockholders, with delivery thereof and the closing of the transaction to occur within ninety (90) days of delivery of the Election Notice. Any such transaction will occur, if at all, only if the Board of Directors obtains a fairness opinion from a
recognized financial advisor or institution providing valuation services to the effect that the consideration to be paid therefor is fair, from a financial point of view, to the stockholders of the Company. 
  

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 c. The Company shall not terminate this Agreement solely for the purpose of avoiding such
a business combination, such as in anticipation of the listing of the Shares on a national stock exchange or their inclusion in a national market system, including, without limitation, Nasdaq. 
  
 14. Expenses of the Company. 
  
 a. The OP, on its own behalf and on behalf of the Company,
shall pay all of the Advisees’ expenses. Without limiting the foregoing, it is specifically agreed that the following expenses of an Advisee shall be paid by the OP on its own behalf or on behalf of the Company and shall not be borne by the
Advisor unless such expense is a fee or other service for which the Advisor is otherwise receiving a fee from the Advisees: 
  
 (i) the cost of money borrowed by the Advisee; 
  

(ii) all taxes applicable to the Advisee including, without limitation, taxes on income and on assessments of real property;

  
 (iii) fees and expenses paid to independent
contractors, unaffiliated mortgage servicers, consultants, managers and other agents employed by or no behalf of the Advisee; 
  
 (iv) Acquisition Expenses and expenses directly connected with the ownership and disposition of real property or other investments, and
with the purchase or origination of real property and mortgage investments (including the costs of foreclosure, insurance premiums, legal services, brokerage and sales commission, maintenance, repair and improvement of property); 
  
 (v) expenses of maintaining and managing real estate equity
interests, processing and servicing mortgage and other loans and managing the Advisee’s other investments; 
  
 (vi) insurance coverage in connection with the business of the Advisee (including officers’, directors’ and partners’
liability insurance); 
  
 (vii) the expenses of
dissolving and liquidating the Advisee or revising, amending or modifying its organizational documents; 
  
 (viii) expenses connected with payments of dividends or interest or distribution in cash or any other form made or caused to be made by
the Board of Directors to the stockholders or partners, as the case may be, of such Advisee. 
  
 (ix) all expenses connected with communications to stockholders or partners, as the case may be, and other bookkeeping and clerical work
necessary in maintaining relations with the stockholders or partners, as the case may be, including the cost of printing and mailing certificates for securities, proxy solicitation materials and reports to holders of the Advisee’s securities;

  
 (x) the cost of any accounting, statistical
or bookkeeping equipment necessary for the maintenance of the books and records of the Advisee; 
  
 (xi) transfer agent’s and registrar’s fees and charges; and 
  
 (xii) other legal, accounting and auditing fees and expenses as well as any costs incurred in connection
with any litigation in which the Advisee is involved and the examination, investigation or other proceedings conducted by any regulatory agency with respect to the Advisee. 
  
 b. The Advisor shall bear the expenses it incurs in connection with performing its duties under the advisory
agreement. These include salaries and fringe benefits of its directors and officers and travel and other administrative expenses of its directors or officers. 
  

c. The OP shall reimburse the Advisor and its Affiliates on its own behalf or on behalf of the Company for (i) advertising expenses,
expense reimbursements, and legal and accounting fees; (ii) the actual cost of goods and materials used by the Advisees and obtained from entities not affiliated with the Advisor; (iii) administrative services (including personnel costs; provided,
however, that no reimbursement shall be made 

  

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for costs of personnel to the extent that such personnel perform services in transactions for which the Advisor receives a separate fee); (iv) acquisition
expenses, which include travel and expenses related to the selection and acquisition of properties, for goods and services provided by the Advisor; (v) rent, leasehold improvement costs, utilities or other administrative items generally constituting
Advisor’s overhead; and (vi) expenses related to negotiating and servicing mortgage loans. In no event shall the OP reimburse the Advisor for any services for which the Advisor shall receive a separate fee. The amounts charged to an Advisee for
services performed shall not exceed the lesser of (a) the actual cost of such services, or (b) the amount which such Advisee would be required to pay to independent parties for comparable services. 
  
 d. Notwithstanding the foregoing, reimbursements of expenses
and payment of fees under this Agreement will be subject to approval by the Board of Directors (including the approval of the majority of Independent Directors). 
  
 15. Reimbursement by Advisor. For any year which the Company qualifies as a real estate investment trust under the
Internal Revenue Code of 1986, as amended, the Advisor shall be obligated to reimburse the Advisees for the amounts, if any, by which the sum of Advisees’ Total Operating Expenses and Asset Management Fees paid during the immediately prior
fiscal year exceed the greater of (i) 2.0% of the Company’s and the OP’s Average Invested Assets during the four quarters of such fiscal year, or (ii) 25.0% of the Company’s and the OP’s net income for such fiscal year;
provided, however, that the Board of Directors (including a majority of the Independent Directors) may require a lower amount which the Advisor shall be obligated to reimburse the Company, upon a determination that such lower
reimbursement amount is justified in light of such unanticipated, unusual or non-recurring factors which may have occurred within sixty (60) days after the end of the quarter for which the excess occurred, and there shall be sent to the stockholders
of the Company a written disclosure of such determination, together with an explanation of the factors the Board of Directors considered in arriving at the conclusion that the higher Total Operating Expenses were justified. 
  
 16. Other Activities of Advisor. 
  
 (a) Except as set forth in this Section 16, nothing in this
Agreement shall prevent the Advisor or any of its Affiliates from engaging in other business activities related to real estate, mortgage investments or other investments whether similar or dissimilar to those made by any of the Advisees or from
acting as advisor to any other person or entity having investment policies whether similar or dissimilar to those of the Company or the OP (including other REITs or partnerships); provided, that, before the Advisor and all Persons
controlled by the Advisor may take advantage of an opportunity for their own account or present or recommend it to others, they are obligated to present an investment opportunity to an Advisee if (i) such opportunity is compatible with such
Advisee’s investment objectives and policies (including such Advisee’s requirements relating to all pertinent factors, including diversification, property type and location), (ii) such opportunity is of a character which could be taken by
such Advisee, and (iii) the Advisee has the financial resources to take advantage of such opportunity. In furtherance, and not in limitation, of the immediately preceding sentence, neither the Advisor nor any Affiliate of the Advisor may make any
investment in residential, retail, industrial and office properties where the investment objective is substantially similar to the investment objectives of the Advisees until such time as seventy five percent (75.0%) of the total gross proceeds from
the offering of the Company’s shares offered for sale pursuant to a registration statement on form S-11 filed with the SEC, following final closing of such offering, have been invested or committed for investment in such properties. 

 
 (b) The Advisor will use its best efforts to present
suitable investments to the Advisees consistent with their investment procedures, objectives and policies. If the Advisor or any of its Affiliates is presented with a potential investment in a property which might be made by more than one investment
entity which it advises or manages, the decision as to the suitability of the property for investment by a particular entity will be based upon a review of the investment portfolio of each entity and upon factors such as: (i) cash flow from the
property; (ii) the effect of the acquisition of the property on the diversification of each entity’s portfolio; (iii) rental payments during any renewal period; (iv) the amount of equity required to make the 

  

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investment; (v) the policies of each entity relating to leverage; (vi) the funds of each entity available for investment; and (vii) the length of time the
funds have been available for investment and the manner in which the potential investment can be structured by each entity. To the extent that a particular property might be determined to be suitable for more than one investment entity, priority
generally will be given to the investment entity having uninvested funds for the longest period of time. 
  
 17. Term; Termination of Agreement. This Agreement shall continue in force for a period of one year from the date hereof (the “Initial
Term”) and thereafter it may be renewed from year to year by written consent of the parties hereto. Notwithstanding any other provision to the contrary, this Agreement may be terminable by the Advisor or by the Advisees (upon determination of
the majority of the Independent Directors) at any time upon 60 days’ prior written notice to the non-terminating party. In the event of the termination of this Agreement, the Advisor will cooperate with the Advisees and take all reasonable
steps requested to assist the Advisees in making an orderly transition of the advisory function. 
  
 18. [RESERVED] 
  
 19. Amendments. This Agreement shall not be changed, modified, terminated or discharged in whole or in part except by an instrument in writing
signed by all parties hereto, or their respective successors or permitted assigns, or otherwise as provided herein. 
  
 20. Assignment. This Agreement may not be assigned by the Advisor, except to an Affiliate of the Advisor, and then only upon the consent of the
Advisees and the approval of a majority of the Independent Directors. Any assignee of the Advisor shall be bound hereunder to the same extent as the Advisor. This Agreement shall not be assigned by any Advisee without the written consent of the
Advisor, except to a corporation, association, trust or other organization which is a successor to such Advisee. Such successor shall be bound hereunder to the same extent as such Advisee. Notwithstanding anything to the contrary contained herein,
the economic rights of the Advisor hereunder, including the right to receive all compensation hereunder, may be sold, transferred or assigned by the Advisor without the consent of the Advisees. 
  
 21. Action Upon Termination. From and after the effective date of
termination of this Agreement, pursuant to Section 17 hereof, the Advisor shall not be entitled to compensation for further service rendered hereunder but shall be paid all compensation and reimbursed for all expenses accrued through the date of
termination within thirty (30) days of such termination. The Advisor shall forthwith upon such termination: 
  
 (a) Pay over to the Advisees all moneys collected and held for the account of such Advisees pursuant to this Agreement, after deducting
any accrued compensation and reimbursement for its expenses to which it is then entitled; 
  
 (b) Deliver to the Advisees a full accounting, including a statement showing all payments collected by it and a statement of all moneys
held by it, covering the period following the date of the last accounting furnished to the Advisees; and 
  
 (c) Deliver to the Advisees all property and documents of the Advisees then in the custody of the Advisor. 
  
 22. Incorporation of the Charter and the Partnership Agreement. To the
extent the Charter or the Partnership Agreement impose obligations or restrictions on the Advisor or grant the Advisor certain rights which are not set forth in this Agreement, the Advisor shall abide by such obligations or restrictions and such
rights shall inure to the benefit of the Advisor with the same force and effect as if they were set forth herein. 
  
 23. Standard of Care. 
  
 a. The Advisor assumes no responsibility under this Agreement other than to render the services called for hereunder in good faith, and
shall not be responsible for any action of the Advisees in following or 

  

 9 

 
declining to follow any advice or recommendations of the Advisor. Neither the advisor nor its directors, officers, partners, members, and employees shall be
liable to the Advisees, or to the stockholders, partners or directors of the Advisees, as the case may be, or to any successor or assignee of the Advisees, except by reason of acts constituting bad faith, gross negligence or willful misconduct. This
shall in no way affect the standard for indemnification but shall only constitute a standard of liability. The duties to be performed by the Advisor pursuant to this Agreement may be performed by it or by officers, members or directors or by
Affiliates of the foregoing under the direction of the Advisor or delegated to unaffiliated third parties under its direction. 
  
 b. The Advisor shall look solely to the assets of the Advisees for satisfaction of all claims against the Advisees, and in no event shall
any stockholder, partner or director of the Advisees, as the case may be, have any personal liability for the obligations of the Advisees under this Agreement. 
  

24. Indemnification of Advisor. 
  
 a. Subject to sections (b)-(d) below, the Advisees shall indemnify the Advisor and its Affiliates for any loss arising out of any of their
acts or omissions in connection with this Agreement and the Advisor and its Affiliates will be held harmless for any loss of liability suffered by the Advisees. 
  
 b. The Advisees shall not indemnify the Advisor or its Affiliates for any liability loss suffered by the
Advisor or its Affiliates, nor shall it hold the Advisor or its Affiliates harmless for any loss or liability suffered by the Advisees unless all of the following conditions are met: (i) the Advisor or its Affiliates determined in good faith that
the course of conduct which caused the loss or liability was in the best interests of the Advisees, (ii) the Advisor or its Affiliates were acting on behalf of the Advisees or performing services for the Advisees, (iii) such liability or loss or
expense was not the result of negligence or misconduct on the part of the Advisor or its Affiliates and (iv) such indemnification or agreement to hold harmless shall be recoverable only out of the net assets of the Advisees and not from the
stockholders, partners or members of the Advisees. 
  
 c. Not withstanding anything to the contrary in subsection b, the Advisees shall not indemnify the Advisor or its Affiliates or any persons acting as a broker-dealer for any losses, liabilities or expenses arising from or out of an alleged
violation of federal or state securities laws by such party unless one or more of the following conditions are met: (i) there has been a successful adjudication on the merits of each count involving alleged securities law violations as to the
particular Indemnitee, (ii) such claims have been dismissed with prejudice on the merits by a court of competent jurisdiction as to the particular Indemnitee or (iii) a court of competent jurisdiction approves a settlement of the claims against a
particular Indemnitee and finds that indemnification of the settlement and related costs should be made, and the court considering the matter has been advised of the position of the Securities and Exchange Commission and the published position of
any state securities regulatory authority as to indemnification for violations of securities law. 
  
 d. The Advisees will advance amounts to the Advisor or its Affiliates for legal expenses and other costs incurred as a result of any legal
action for which indemnification is being sought is permissible only if all of the following conditions are satisfied: (i) the legal action relates to acts or omissions with respect to the performance of duties or services on behalf of the Advisees,
(ii) the legal action is initiated by a third party who is not a Stockholder or is initiated by a Stockholder acting in his or her capacity as such and a court of competent jurisdiction specifically approves the advancement and (iii) the Advisor or
its Affiliates undertake in writing to repay the advanced funds to the Advisees, together with the applicable legal rate of interest thereon, in cases in which such the Advisor or its Affiliates are found not to be entitled to indemnification.

  

 10 

 25. Notices. Any notice, report or other communication required or permitted to be given hereunder
shall be in writing, and shall be given by delivering such notice by hand or by certified mail, return receipt requested, postage pre-paid, at the following addresses of the parties hereto: 
  
 Advisees: 
  
 The Company: 
  
 Lightstone Value Plus Real Estate Investment Trust, Inc.

 326 Third Street 
 Lakewood, New Jersey 08701 
 Attn:   David Lichtenstein 
            Chief Executive Officer 
  
 With a copy to: 
  
 Proskauer Rose LLP 
 1585 Broadway 
 New York, New York 10036 
 Attention: Peter M. Fass, Esq. 
  
 The OP 
  
 Lightstone Value Plus Reit LP 
 [326 Third Street 
 Lakewood, New Jersey 08701] 
  
 With a copy to: 
  
 Proskauer Rose LLP 
 1585 Broadway 
 New York, New York 10036 
 Attention: Peter M. Fass, Esq. 
  
 The Advisor: 
  
 Lightstone Value Plus Reit LLC 
 326 Third Street 
 Lakewood, New Jersey 08701 
 Attn:   David Lichtenstein 
            Chief Executive Officer 
  
 With a copy to: 
  
 Proskauer Rose LLP 
 1585 Broadway 
 New York, New York 10036 
 Attention: Peter M. Fass, Esq. 
  
 Any party may at any time change its address for the purpose of this Section 25 by like notice. 
  
 26. Headings. The section headings herein have been inserted for
convenience of reference only and shall not be construed to affect the meaning, construction or effect of this Agreement. 
  
 27. No Waivers. Neither the failure nor any delay on the party of a party to exercise any right, remedy, power or privilege under this Agreement
shall operate as a waiver thereof, nor shall any single or partial exercise 

  

 11 

 
of any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any
waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrences. No waiver shall be effective unless it is in writing and is
signed by the party asserted to have granted such waiver. 
  
 28.
Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, and all of which shall together constitute one and the same instrument. 
  
 29. Entire Agreement. This Agreement contains the entire agreement and
understanding among the parties hereto with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature whatsoever with
respect to the subject matter hereof. 
  
 30. Governing
Law. The provisions of this Agreement shall be construed and interpreted in accordance with the laws of the State of New York as at the time in effect. 
  
 [END OF TEXT] 
  

 12 

 Exhibit 10.2 
  
 IN WITNESS WHEREOF, the undersigned have caused this Agreement to be signed as of the day and year first above written.

  

			
	 LIGHTSTONE VALUE PLUS REAL ESTATE INVESTMENT TRUST, INC.

		
	 By:
	 	  

	 	 	Name:
	 	 	Title:
	
	 LIGHTSTONE VALUE PLUS REIT LP

		
	 By:
	 	 Lightstone Value Plus Real Estate
 Investment Trust, Inc.,

	 	 	its General Partner
		
	 By:
	 	  

	 	 	Name:
	 	 	Title:
	
	 LIGHTSTONE VALUE PLUS REIT LLC

		
	 By:
	 	  

	 	 	Name:
	 	 	Title:Form of the Company's Stock Option Plan

 Exhibit 10.4 
  

  
 LIGHTSTONE VALUE PLUS REAL ESTATE INVESTMENT TRUST, INC. 
  
 FORM OF 2005 NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN 
  
 Effective as of [                    ], 2005 
  

 TABLE OF CONTENTS 
  
 Page 

					
			
	1.	  	Purpose of the Plan.	  	1
			
	2.	  	Definitions.	  	1
			
	3.	  	Effective Date/Expiration of Plan.	  	3
			
	4.	  	Administration.	  	3
			
	5.	  	Shares; Adjustment Upon Certain Events.	  	4
			
	6.	  	Awards and Terms of Options.	  	6
			
	7.	  	Effect of Termination of Service.	  	9
			
	8.	  	Nontransferability of Options.	  	10
			
	9.	  	Rights as a Stockholder.	  	10
			
	10.	  	Determinations.	  	10
			
	11.	  	Termination, Amendment and Modification.	  	10
			
	12.	  	Non-Exclusivity.	  	11
			
	13.	  	Use of Proceeds.	  	11
			
	14.	  	General Provisions.	  	11
			
	15.	  	Issuance of Stock Certificates; Legends and Payment of Expenses.	  	12
			
	16.	  	Listing of Shares and Related Matters.	  	13
			
	17.	  	Governing Law.	  	13

 LIGHTSTONE VALUE PLUS REAL ESTATE INVESTMENT TRUST, INC. 
  
 FORM OF 2005 NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN 
  
 Effective as of
[                    ], 2005 
  
 1. Purpose of the Plan. 
  
 The purpose of this Lightstone Value Plus Real Estate Investment Trust, Inc. 2005 Non-Employee Director Stock Option Plan is to enhance the Company’s
profitability and value for the benefit of stockholders to enable the Company to attract, retain and motivate Non-Employee Directors and who are important to the success of the Company and to create and strengthen a mutuality of interest between the
Non-Employee Directors and the stockholders of the Company by granting such directors options to purchase Common Stock of the Company. 
  
 2. Definitions. 
  
 (a) “Acquisition Event” means a merger or consolidation in which the Company is not the surviving entity, or any transaction that
results in the acquisition of all or substantially all of the Company’s outstanding Common Stock by a single person or entity or by a group of persons and/or entities in concert, or the sale or transfer of all or substantially all of the
Company’s assets. 
  
 (b) “Act” means
the Securities Exchange Act of 1934, as amended and the rules and regulations promulgated thereunder. 
  
 (c) Annual Date of Grant” has the meaning set forth in Section 6(a). 
  
 (d) “Board” means the Board of Directors of the Company. 
  
 (e) “Cause” has the meaning set forth in Section
7(b). 
  
 (f) “Change of Control” has the
meaning set for in Section 6(d). 
  
 (g)
“Code” means the Internal Revenue Code of 1986, as amended. 
  
 (h) “Committee” means the Board of a duly appointed committee of the Board to which the Board has delegated its powers and functions hereunder. 
  
 (i) “Common Stock” means the voting common stock of
the Company, par value $.01, any common stock into which the common stock may be converted and any common stock resulting from any reclassification of the common stock. 
  
 (j) “Company” means Lightstone Value Plus Real Estate Investment Trust, Inc., a Maryland
corporation. 
  
 (k) “Company Voting
Securities” has the meaning set forth in Section 6(d)(i). 

 (l) “Corporate Transaction” has the meaning set forth in Section 6(d)(i).

  
 (m) “Disability” means a permanent and
total disability, as determined by the Committee in its sole discretion, provided that in no event shall any disability that is not permanent and total disability within the meaning of Section 22(e)(3) of the Code be treated as a Disability. A
Disability shall be deemed to occur at the time of the determination by the Committee of the Disability. 
  
 (n) “Effective Date” has the meaning set forth in Section 3. 
  
 (o) “Fair Market Value” means, for purposes of this Plan, unless otherwise required by any
applicable provision of the Code or any regulations issued thereunder, as of any date and except as provided below, the last sales price reported for the Common Stock on the applicable date: (i) as reported on the principal national securities
exchange in the United States on which it is then traded or The Nasdaq Stock Market, Inc.; or (ii) if not traded on any such national securities exchange or The Nasdaq Stock Market, Inc., as quoted on an automated quotation system sponsored by the
National Association of Securities Dealers, Inc. or if the Common Stock shall not have been reported or quoted on such date, on the first day prior thereto on which the Common Stock was reported or quoted; provided, that the Committee may modify the
definition of Fair Market Value to reflect any changes in the trading practices of any exchange on which the Common Stock is listed or traded. If the Common Stock is not readily tradable on a national securities exchange, The Nasdaq Stock Market,
Inc. or any automated quotation system sponsored by the National Association of Securities Dealers, Inc., its Fair Market Value shall be set in good faith by the Committee. For purposes of the grant of any Option, the applicable date shall be the
date on which the Stock Option is granted. 
  
 (p)
“Incumbent Board” has the meaning set forth in Section 6(d)(ii). 
  
 (q) “Non-Employee Directors” means, except for purposes of the definition of Committee, directors of the Company who are not employees of the Company or its subsidiaries. 
  
 (r) “Option” means the right to purchase the number
of Shares granted in the Option agreement at a prescribed purchase price on the terms specified in the Plan and the Option agreement. No Option awarded under this Plan is intended to be an “incentive stock option” within the meaning of
Section 422 of the Code. 
  
 (s)
“Participant” means a Non-Employee Director who is granted an Option under the Plan, which Option has not expired or been cancelled. 
  
 (t) “Person” means an individual, entity or group within the meaning of Section l3d-3 or 14d-1 of the Act. 
  
 (u) “Plan” means the Lightstone Value Plus Real
Estate Investment Trust, Inc. 2005 Non-Employee Director Stock Option Plan, as amended from time to time. 
  
 (v) “Purchase Price” means the purchase price per Share. 
  
 (w) “Securities Act” means the Securities Act of 1933, as amended. 
  

 2 

 (x) “Share” means a share of Common Stock. 
  
 (y) “Termination of Service” means termination of the
relationship with the Company so that an individual is no longer a director of the Company. 
  
 3. Effective Date/Expiration of Plan. 
  
 The Plan became effective [                    ] 2005 (the “Effective Date”), subject to stockholder
approval of this Plan in accordance with the laws of the State of Maryland and any applicable exchange requirements. The Plan shall terminate at the close of business on the tenth anniversary of the Effective Date, unless terminated sooner as
hereinafter provided. No Option shall be granted under the Plan on or after the tenth anniversary of the Effective Date, but Options previously granted may extend beyond that date. 
  
 4. Administration. 
  
 (a) Duties of the Committee. The Plan shall be administered by the Committee. The Committee shall have full authority to interpret the Plan and to
decide any questions and settle all controversies and disputes that may arise in connection with the Plan; to establish, amend, and rescind rules for carrying out the Plan, to administer the Plan, subject to its provisions; to prescribe the form or
forms of instruments evidencing Options and any other instruments required under the Plan (which need not be uniform) and to change such forms from time to time; and to make all other determinations and to take all such steps in connection with the
Plan and the Options as the Committee, in its sole discretion, deems necessary or desirable; provided, that all such determinations shall be in accordance with the express provisions, if any, contained in the Plan or Option agreement. The
Committee shall not be bound to any standards of uniformity or similarity of action, interpretation or conduct in the discharge of its duties hereunder, regardless of the apparent similarity of the matters coming before it. The determination, action
or conclusion of the Committee in connection with the foregoing shall be final, conclusive and binding on all parties. 
  
 (b) Advisors. The Committee may designate the Secretary of the Company, other employees of the Company or competent professional advisors to assist
the Committee in the administration of the Plan, and may grant authority to such persons (other than professional advisors) to grant an Option or to execute Option agreements or other documents on behalf of the Committee, provided that no
Participant may grant an Option or execute any Option agreement granting Options to such Participant. The Committee may employ such legal counsel, consultants and agents as it may deem desirable for the administration of the Plan, and may rely upon
any opinion received from any such counsel or consultant and any computation received from any such consultant or agent. Expenses incurred by the Committee in the engagement of such counsel, consultant or agent shall be paid by the Company.

  
 (c) Indemnification. To the maximum extent permitted by
law, no officer, member or former officer or member of the Committee or the Board shall be liable for any action or determination made in good faith with respect to the Plan or any Option granted under it. To the maximum extent permitted by
applicable law or the Certificate of Incorporation or By-Laws of the Company and to the extent not covered by insurance, each officer, member or former officer 

  

 3 

 
or member of the Committee or of the Board shall be indemnified and held harmless by the Company against any cost or expense (including reasonable fees of
counsel reasonably acceptable to the Company) or liability (including any sum paid in settlement of a claim with the approval of the Company), and advanced amounts necessary to pay the foregoing at the earliest time and to the fullest extent
permitted, arising out of any act or omission to act in connection with the Plan, except to the extent arising out of such officer’s, member’s or former officer’s or member’s own fraud or bad faith. Such indemnification shall be
in addition to any rights of indemnification the officers, members or former officers or members may have as directors under applicable law or under the Certificate of Incorporation or By-Laws of the Company or otherwise. 
  
 (d) Meetings of the Committee. The Committee shall select one of its
members as a Chairman and shall adopt such rules and regulations, as it shall deem appropriate, concerning the holding of its meetings and the transaction of its business. Any member of the Committee may be removed at any time either with or without
cause by resolution adopted by the Board, and any vacancy on the Committee may at any time be filled by resolution adopted by the Board. All determinations by the Committee shall be made by the affirmative vote of a majority of its members. Any such
determination may be made at a meeting duly called and held at which a majority of the members of the Committee were in attendance in person or through telephonic communication. Any determination set forth in writing and signed by all of the members
of the Committee shall be as fully effective as if it had been made by a vote of such members at a meeting duly called and held. 
  
 5. Shares; Adjustment Upon Certain Events. 
  
 (a) Shares to be Delivered; Fractional Shares. Shares to be issued under the Plan shall be made available, at the discretion of the Board, either
from authorized but unissued Shares or from issued Shares reacquired by the Company and held in treasury. No fractional Shares will be issued or transferred upon the exercise of any Option. In lieu thereof, the Company shall pay a cash adjustment
equal to the same fraction of the Fair Market Value of one Share on the date of exercise. 
  
 (b) Number of Shares. Subject to adjustment as provided in this Section 5, the maximum aggregate number of Shares authorized for issuance under the Plan shall be 75,000 Shares. If an Option is for any reason
canceled, or expires or terminates unexercised, the Shares covered by such Option shall again be available for the grant of Options, within the limits provided by the preceding sentence. In addition, if Common Stock has been exchanged by a
Participant as full or partial payment to the Company of the Purchase Price or if the number of shares of Common Stock otherwise deliverable has been reduced for full or partial payment to the Company of the Purchase Price, the number of shares of
Common Stock exchanged or reduced shall again be available under the Plan. 
  
 (c) Adjustments; Recapitalization, etc. The existence of the Plan and the Options granted hereunder shall not affect in any way the right or power of the Board or the stockholders of the Company to make or
authorize any adjustment, recapitalization, reorganization or other change in the Company’s capital structure or its business, any merger or consolidation of the Company, any issue of bonds, debentures, preferred or prior preference stocks
ahead of or 

  

 4 

 
affecting Common Stock, the dissolution or liquidation of the Company or any sale or transfer of all or part of its assets or business or any other corporate
act or proceeding. If and whenever the Company takes any such action, however, the following provisions, to the extent applicable, shall govern: 
  
 (i) If and whenever the Company shall effect a stock split, stock dividend, subdivision, recapitalization or combination of Shares or
other changes in the Company’s Common Stock, (x) the Purchase Price (as defined herein) per Share and the number and class of Shares and/or other securities with respect to which outstanding Options thereafter may be exercised, and (y) the
total number and class of Shares and/or other securities that may be issued under this Plan, shall be proportionately adjusted by the Committee. The Committee may also make such other adjustments as it deems necessary to take into consideration any
other event (including, without limitation, accounting changes) if the Committee determines that such adjustment is appropriate to avoid distortion in the operation of the Plan. 
  
 (ii) Subject to Section 5(c)(iii), if the Company merges or consolidates with one or more corporations, then
from and after the effective date of such merger or consolidation, upon exercise of an Option theretofore granted, the Participant shall be entitled to purchase under such Option, in lieu of the number of Shares as to which such Option shall then be
exercisable but on the same terms and conditions of exercise set forth in such Option, the number and class of Shares and/or other securities or property (including cash) to which the Participant would have been entitled pursuant to the terms of the
agreement of merger or consolidation if, immediately prior to such merger or consolidation, the Participant had been the holder of record of the total number of Shares receivable upon exercise of such Option (whether or not then exercisable). In
connection with any event described in this paragraph, the Committee may provide, in its sole discretion, for the cancellation of any outstanding Options and payment in cash or other property in exchange therefor. 
  
 (iii) In the event of an Acquisition Event, the Committee
may, in its discretion, and without any liability to any Participant, terminate all outstanding Options as of the consummation of the Acquisition Event by delivering notice of termination to each Participant at least 20 days prior to the date of
consummation of the Acquisition Event; provided that, during the period from the date on which such notice of termination is delivered to the consummation of the Acquisition Event, each Participant shall have the right to exercise in full all of the
Options that are then outstanding (without regard to limitations on exercise otherwise contained in the Options) but any such exercise shall be contingent upon and subject to the occurrence of the Acquisition Event, provided that if the Acquisition
Event does not take place within a specified period after giving such notice for any reason whatsoever, the notice and exercise pursuant thereto shall be null and void. If the Acquisition Event does take place after giving such notice, any Option
not exercised prior to the date of the consummation of such Acquisition Event shall be forfeited simultaneous with the consummation of the Acquisition Event. If an Acquisition Event occurs and the Committee does not terminate the outstanding Options
pursuant to the foregoing provisions, then the provisions of Section 5(c)(ii) shall apply. 
  

 5 

 (iv) If, as a result of any adjustment made pursuant to the preceding paragraphs of this
Section 5, any Participant shall become entitled upon exercise of an Option to receive any securities other than Common Stock, then the number and class of securities so receivable thereafter shall be subject to adjustment from time to time in a
manner and on terms as nearly equivalent as practicable to the provisions with respect to the Common Stock set forth in this Section 5, as determined by the Committee in its discretion. 
  
 (v) Except as hereinbefore expressly provided, the issuance by the Company of shares of stock of any class,
or securities convertible into shares of stock of any class, for cash, property, labor or services, upon direct sale, upon the exercise of rights or warrants to subscribe therefor, or upon conversion of shares or other securities, and in any case
whether or not for fair value, shall not affect, and no adjustment by reason thereof shall be made with respect to the number and class of Shares and/or other securities or property subject to Options theretofore granted of the Purchase Price per
Share. 
  
 6. Awards and Terms of Options. 
  
 (a) Grant. Without further action by the Board or the stockholders
(except as provided in Section 11) of the Company, each year, as of the date of the annual meeting of the stockholders of the Company (each such date, an “Annual Date of Grant”), each Participant shall be automatically granted an Option to
purchase 3,000 Shares (subject to any increase or decrease pursuant to Section 5(c)), subject to the terms of the Plan, provided that no such Option shall be granted if on the date of grant the Company has liquidated, dissolved or merged or
consolidated with another entity in such a manner that it is not the surviving entity (unless the Plan has been assumed by such surviving entity with regard to future grants). 
  
 (b) Purchase Price. The Purchase Price deliverable upon the exercise of an Option shall equal 100% of the Fair Market
Value on the last business day preceding the Annual Date of Grant. Notwithstanding the foregoing, the Purchase Price for all Options granted under the Plan will be $10 per Share until the termination of the Company’s initial public offering.

  
 (c) Exercisability. Except as otherwise provided
herein, any Option granted to a Participant shall vest and become exercisable on the second anniversary of the date of grant, subject to the Participant’s continued service as a Non-Employee Director through such date. No Option shall be
exercisable after the expiration of ten (10) years from the date of grant. 
  
 (d) Acceleration of Exercisability on Change of Control. All Options granted and not previously exercisable shall become exercisable immediately upon a Change of Control (as defined herein). For this purpose, a
“Change of Control” shall be deemed to have occurred upon: 
  
 (i) an acquisition by any Person of beneficial ownership (within the meaning of Ru1e l3d-3 promulgated under the Act) of [33%] or more of either (A) the then outstanding Shares or (B) the combined voting power of the
then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Company Voting Securities”); excluding, however, the following: (w) any acquisition 

  

 6 

 
directly from the Company, other than an acquisition by virtue of the exercise of a conversion privilege unless the security being so converted was itself
acquired directly from the Company, (x) any acquisition by the Company, (y) any acquisition by an employee benefit plan (or related trust) sponsored or maintained by the Company or (z) any acquisition by any corporation pursuant to a reorganization,
merger, consolidation or similar corporate transaction (in each case, a “Corporate Transaction”), if, pursuant to such Corporate Transaction, the conditions described in clauses (A), (B) and (C) of paragraph (iii) of this
Section are satisfied; or 
  
 (ii) a change in
the composition of the Board such that the individuals who, as of the Effective Date hereof, constitute the Board (the Board as of the date hereof shall be hereinafter referred to as the “Incumbent Board”) cease for any
reason to constitute at least a majority of the Board; provided that for purposes of this subsection any individual who becomes a member of the Board subsequent to the date hereof whose election, or nomination for election by the Company’s
stockholders, was approved by a vote of at least a majority of those individuals who are members of the Board and who are also members of the Incumbent Board (or deemed to be such pursuant to this proviso) shall be considered as though such
individual were a member of the Incumbent Board; but, provided further, that any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest (as such terms are used in Rule 14a-11 of
Regulation 14A promulgated under the Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board shall not be so considered as a member of the Incumbent Board; or 
  
 (iii) the approval by the stockholders of the Company of a
Corporate Transaction or, if consummation of such Corporate Transaction is subject, at the time of such approval by stockholders, to the consent of any government or governmental agency, the obtaining of such consent (either explicitly or implicitly
by consummation); excluding, however, such a Corporate Transaction pursuant to which (A) all or substantially all of the individuals and entities who are the beneficial owners, respectively, of the outstanding Shares and Company Voting Securities
immediately prior to such Corporate Transaction will beneficially own, directly or indirectly, more than [60%] of, respectively, the outstanding shares of common stock of the corporation resulting from such Corporate Transaction and the combined
voting power of the outstanding voting securities of such corporation entitled to vote generally in the election of directors, in substantially the same proportions as their ownership, immediately prior to such Corporate Transaction, of the
outstanding Shares and Company Voting Securities, as the case may be, (B) no Person (other than the Company, any employee benefit plan (or related trust) of the Company or the corporation resulting from such Corporate Transaction and any Person
beneficially owning, immediately prior to such Corporate Transaction, directly or indirectly, [33%] or more of the outstanding Shares or Company Voting Securities, as the case may be) will beneficially own, directly or indirectly, [33%] or more of,
respectively, the outstanding shares of common stock of the corporation resulting from such Corporate Transaction or the combined voting power of the then outstanding securities of such corporation entitled to vote generally in the election of
directors and (C) individuals who were members of the Incumbent Board will constitute at least a majority of the members of the board of directors of the corporation 
  

 7 

 
resulting from such Corporate Transaction; notwithstanding the foregoing, no Change of Control will occur if two-thirds (2/3) of the
Incumbent Board approves the Corporate Transaction; or 
  
 (iv) the approval of the stockholders of the Company of (A) a complete liquidation or dissolution of the Company or (B) the sale or other disposition of all or substantially all of the assets of the Company; excluding; however, such a sale
or other disposition to a corporation with respect to which, following such sale or other disposition, (x) more than [60%] of, respectively, the then outstanding shares of common stock of such corporation and the combined voting power of the then
outstanding voting securities of such corporation entitled to vote generally in the election of directors will be then beneficially owned, directly or indirectly, by all or substantially all of the individuals and entities who were the beneficial
owners respectively, of the outstanding Shares and Company Voting Securities immediately prior to such sale or other disposition in substantially the same proportion as their ownership, immediately prior to such sale or other disposition, of the
outstanding Shares and Company Voting Securities, as the case may be, (y) no Person (other than the Company and any employee benefit plan (or related trust) of the Company or such corporation and any Person beneficially owning, immediately prior to
such sale or other disposition, directly or indirectly, 33% or more of the outstanding Shares or Company Voting Securities, as the case may be) will beneficially own, directly or indirectly, [33%] or more of, respectively, the then outstanding
shares of common stock of such corporation and the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of directors and (z) individuals who were members of the Incumbent
Board will constitute at least a majority of the members of the board of directors of such corporation. 
  
 (e) Exercise of Options. 
  
 (i) A Participant may elect to exercise an Option by giving written notice to the Committee of such election and of the number of Shares
such Participant has elected to purchase pursuant to the Option, accompanied by payment in full of the aggregate Purchase Price for the number of Shares for which the Option is being exercised. 
  
 (ii) Shares purchased pursuant to the exercise of an Option
shall be paid for at the time of exercise as follows: 
  
 (A) in cash or by check, bank draft or money order payable to the order of the Company; 
  
 (B) if so permitted by the Committee: (x) through the delivery of unencumbered Shares (including Shares being acquired pursuant to the
Option then being exercised), provided such Shares (or such Option) have been owned by the Participant for such period as may be required by applicable accounting standards to avoid a charge to earnings or (y) through a combination of Shares and
cash as provided above, provided, that, if the Shares delivered upon exercise of the Option is an original issue of authorized Shares, at least so much of the Purchase Price as represents the par value of such Shares shall be paid in cash or by a
combination of cash and Shares; 
  

 8 

 (C) if the Common Stock is traded on a national securities exchange, the Nasdaq Stock
Market, Inc. or quoted on a national quotation system sponsored by the National Association of Securities Dealers, through the delivery of irrevocable instructions to a broker to deliver promptly to the Company an amount equal to the aggregate
Purchase Price; or 
  
 (D) on such other terms
and conditions as may be acceptable to the Committee and in accordance with applicable law. As soon as practicable after receipt of payment, the Company shall deliver to the Participant a certificate or certificates for the Shares then purchased.

  
 (iii) REIT Status. Notwithstanding
anything herein to the contrary, no Option granted under this Plan may be exercised if such exercise would jeopardize the Company’s status as a “real estate investment trust” as defined under the Code. 
  
 7. Effect of Termination of Service. 
  
 (a) Death, Disability, or Retirement. Except as otherwise provided in
the Participant’s Option agreement or in this Plan, upon a Termination of Service, all outstanding Options then exercisable and not exercised by the Participant prior to such Termination of Service shall remain exercisable by the Participant to
the extent not theretofore exercised for the following time periods (subject to Section 6(c)): 
  
 (i) in the event of the Participant’s death, such Options shall remain exercisable (by the Participant’s estate or by the person
given authority to exercise such Options by the Participant’s will or by operation of law) for a period of [one (1) year] from the date of the Participant’s death; and 
  
 (ii) in the event the Participant retires at or after age 65 (or, with the consent of the Committee, before
age 65), or, if the Participant’s services terminate due to Disability, such Options shall remain exercisable for [one (1) year] from the date of the Participant’s Termination of Service. 
  
 (b) Cause. Upon the Termination of Service of a Participant for Cause
(as defined herein) or if it is discovered after a Termination of Service that such Participant had engaged in conduct that would have justified a Termination of Service for Cause, all outstanding Options (whether vested or unvested) shall
immediately be canceled, provided that upon any such termination the Committee may, in its discretion, require the Participant to promptly pay to the Company (and the Company shall have the right to recover) any gain the Participant realized as a
result of the exercise of any Option that occurred within one (1) year prior to such Termination of Service or the discovery of conduct that would have justified a Termination of Service for Cause. Termination of Service shall be deemed to be for
“Cause” for purposes of this Section 7(b) if the Participant shall have committed fraud or any felony in connection with the Participant’s duties as a director of the Company or willful misconduct or any act of disloyalty, dishonesty,
fraud or breach of trust, confidentiality or fiduciary duties as to the Company or the 

  

 9 

 
commission of any other act which causes or may reasonably be expected to cause economic or reputational injury to the Company or any other act or failure to
act that constitutes “cause” for removal of a director under applicable Maryland law. 
  
 (c) Other Termination. In the event of a Termination of Service for any reason other than as provided in Sections 7(a) and 7(b), all outstanding
Options then exercisable and not exercised by the Participant prior to such Termination of Service shall remain exercisable (to the extent exercisable by such Participant immediately before such termination) for a period of [three (3) months] after
such termination, but not beyond the original stated term of the Option. 
  
 8.
Nontransferability of Options. 
  
 No Option shall be
transferable by the Participant otherwise than by will or under applicable laws of descent and distribution, and during the lifetime of the holder may be exercised only by the holder or his or her guardian or legal representative. In addition, no
Option shall be assigned, negotiated, pledged or hypothecated in any way (whether by operation of law or otherwise), and no Option shall be subject to execution, attachment or similar process. Upon any attempt to transfer, assign, negotiate, pledge
or hypothecate any Option, or in the event of any levy upon any Option by reason of any execution, attachment or similar process contrary to the provisions hereof, such Option shall immediately be cancelled. Notwithstanding the foregoing, the
Committee may determine at the time of grant or thereafter, that an Option that is otherwise non transferable is transferable in whole or in part and in such circumstances, and under such conditions, as specified by the Committee. 
  
 9. Rights as a Stockholder. 
  
 A holder of an Option shall have no rights as a stockholder with respect to
any Shares covered by such holder’s Option until such holder shall have become the holder of record of such Shares, and no adjustments shall be made for dividends in cash or other property or distributions or other rights in respect to any such
Shares, except as otherwise specifically provided for in this Plan. 
  
 10.
Determinations. 
  
 Each determination, interpretation or
other action made or taken pursuant to the provisions of this Plan by the Committee shall be final, conclusive and binding for all purposes and upon all persons, including, without limitation, the holders of any Options and Non-Employee Directors
and their respective heirs, executors, administrators, personal representatives and other successors in interest. 
  
 11. Termination, Amendment and Modification. 
  
 Notwithstanding any other provision of this Plan, the Board or the Committee may at any time, and from time to time, amend, in whole or in part, any or
all of the provisions of this Plan, or suspend or terminate it entirely, retroactively or otherwise; provided, however, that, unless otherwise required by law or specifically provided herein, the rights of a Participant with respect to Options
granted prior to such amendment, suspension or termination, may not be impaired without the consent of such Participant; provided further, that no amendment may be made, 

  

 10 

 
without the approval of the stockholders of the Company, which would: (i) increase the total number of Shares which may be acquired upon exercise of Options
granted under the Plan; (ii) change the requirements for eligibility for participation in the Plan; or (iii) require stockholder approval under applicable law. 
  

The Committee may amend the terms of any Option theretofore granted, prospectively or retroactively, but, subject to Section 5 above or as otherwise
specifically provided herein, no such amendment or other action by the Committee shall impair the rights of any holder without the holder’s consent. 
  
 12. Non-Exclusivity. 
  
 Neither the adoption of the Plan by the Board shall be construed as creating any limitations on the power of the Board to adopt such other incentive
arrangements as it may deem desirable, including, without limitation, the granting or issuance of Options, Shares and/or other incentives otherwise than under the Plan, and such arrangements may be either generally applicable or limited in
application. 
  
 13. Use of Proceeds. 
  
 The proceeds of the sale of Shares subject to Options under the Plan are to
be added to the general funds of the Company and used for its general corporate purposes as the Board shall determine. 
  
 14. General Provisions. 
  
 (a) Right to Terminate Services. Neither the adoption of the Plan nor the grant of Options shall impose any obligations on the Company to retain
any Participant as a director nor shall it impose any obligation on the part of any Participant to remain a director. 
  
 (b) Purchase for Investment. If the Board determines that the law so requires, the holder of an Option granted hereunder shall, upon any exercise
or conversion thereof, execute and deliver to the Company a written statement, in form satisfactory to the Company, representing and warranting that such Participant is purchasing or accepting the Shares then acquired for such Participant’s own
account and not with a view to the resale or distribution thereof, that any subsequent offer for sale or sale of any such Shares shall be made either pursuant to (i) a registration statement on in appropriate form under the Securities Act, which
registration statement shall have become effective and shall be current with respect to the Shares being offered and sold, or (ii) a specific exemption from the registration requirements of the Securities Act, and that in claiming such exemption the
holder will, prior to any offer for sale or sale of such Shares, obtain a favorable written opinion, satisfactory in form and substance to the Company, from counsel approved by the Company as to the availability of such exception. 
  
 (c) Trusts, etc. Nothing contained in the Plan and no action taken
pursuant to the Plan (including, without limitation, the grant of any Option thereunder) shall create or be construed to create a trust of any kind, or a fiduciary relationship, between the Company and any Participant or the executor, administrator
or other personal representative or designated beneficiary of such Participant, or any other persons. Any reserves that may be established by 

  

 11 

 
the Company in connection with the Plan shall continue to be part of the general funds of the Company, and no individual or entity other than the Company
shall have any interest in such funds until paid to a Participant. If and to the extent that any Participant or such Participant’s executor, administrator, or other personal representative, as the case may be, acquires a right to receive any
payment from the Company pursuant to the Plan, such right shall be no greater than the right of an unsecured general creditor of the Company. 
  
 (d) Notices. Each Participant shall be responsible for furnishing the Committee with the current and proper address for the mailing to such
Participant of notices and the delivery to such Participant of agreements, Shares and payments. Any notices required or permitted to be given shall be deemed given if directed to the person to whom addressed at such address and mailed by regular
United States mail, first class and prepaid. If any item mailed to such address is returned as undeliverable to the addressee, mailing will be suspended until the Participant furnishes the proper address. 
  
 (e) Severability of Provisions. If any provisions of the Plan shall be
held invalid or unenforceable, such invalidity or unenforceability shall not affect any other provisions of the Plan, and the Plan shall be construed and enforced as if such provisions had not been included. 
  
 (f) Payment to Minors, Etc. Any benefit payable to or for the benefit
of a minor, an incompetent person or other person incapable of receipting therefor shall be deemed paid when paid to such person’s guardian or to the party providing or reasonably appearing to provide for the care of such person, and such
payment shall fully discharge the Committee, the Company and their employees, agents and representatives with respect thereto. 
  
 (g) Readings and Captions. The headings and captions herein are provided for reference and convenience only. They shall not be considered part of
the Plan and shall not be employed in the construction of the Plan. 
  
 (h) Other Benefits. No award under this Plan shall be deemed compensation for purposes of computing benefits under any retirement plan of the Company or its subsidiaries nor affect any benefits under any other benefit plan now or
subsequently in effect under which the availability or amount of benefits is related to the level of compensation. 
  
 15. Issuance of Stock Certificates; Legends and Payment of Expenses. 
  
 (a) Stock Certificates. Upon any exercise of an Option and payment of the exercise price as provided in such Option, a certificate or certificates
for the Shares as to which such Option has been exercised shall be issued by the Company in the name of the person or persons exercising such Option and shall be delivered to or upon the order of such person or persons. 
  
 (b) Legends. Certificates for Shares issued upon exercise of an Option
shall bear such legend or legends as the Committee, in its discretion, determines to be necessary or appropriate to prevent a violation of, or to perfect an exemption from, the registration requirements of the Securities Act or to implement the
provisions of any agreements between the Company and the Participant with respect to such Shares. 
  

 12 

 (c) Payment of Expenses. The Company shall pay all issue or transfer taxes with respect to the
issuance or transfer of Shares, as well as all fees and expenses necessarily incurred by the Company in connection with such issuance or transfer and with the administration of the Plan. 
  
 (d) Section 16(b) of the Act. All elections and transactions under the Plan by persons subject to Section 16 of the
Act involving Shares are intended to comply with any applicable condition under Rule 16b-3, provided, however, noncompliance with the requirements of Rule 16b-3 shall not affect the validity of an Option granted under this Plan. To the extent any
provision of the Plan or action by the Committee fails to so comply, it shall be deemed null and void. The Committee may establish and adopt written administrative guidelines, designed to facilitate compliance with Section 16(b) of the Act, as it
may deem necessary or proper for the administration and operation of the Plan and the transaction of business thereunder. 
  
 16. Listing of Shares and Related Matters. 
  
 If at any time the Board shall determine in its sole discretion that the listing, registration or qualification of the Shares covered by the, Plan upon
any national securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory body, is necessary or desirable as a condition of, or in connection with, the award or sale of Shares under the Plan, no
Shares will be delivered unless and until such listing, registration, qualification, consent or approval shall have been effected or obtained, or otherwise provided for, free of any conditions not acceptable to the Board. 
  
 17. Governing Law. 
  
 This Plan shall be governed and construed in accordance with the laws of the State of Maryland (regardless of the law that
might otherwise govern under applicable principles of conflict of laws). 
  

 13

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