Document:

Form of Advisory Agreement by and among Lightstone Value Plus REIT, Inc et al

 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
[                    ], 2004 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) “Termination Fee” shall have the meaning set forth in Section 17(b). 
  
 (bb) “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. 
  
 a. 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. 
  
 b. If (i) this Agreement is not renewed or is terminated by reason of the Change of Control of the Advisees, by the Advisees without Cause or by the Advisor for Good Reason, or upon liquidation of the Company, then
the Advisor shall receive a termination fee (the “Termination Fee”) equal to (x) fifteen per cent (15%) of the amount, if any, by which (a) the appraised value of the real properties owned by the Advisees on the date of such
termination, less amounts of all indebtedness secured by such properties, exceeds (b) the dollar amount of the Preferred Return were it to be payable to the stockholders of the Company on such date, less (y) the Special Liquidation Distribution or
the Special Termination Distribution, as applicable, paid to the Special Limited Partner under the Partnership Agreement concurrently with or prior to the non-renewal or termination of this Agreement. The Termination Fee shall be paid in twelve (12)
equal quarterly installments starting on the date of termination. The Advisees shall pay interest on unpaid amounts of Termination Fee at a rate equal to six per cent (6.0% per annum. 
  
 c. Any amounts which may be deemed payable at the date the obligation to pay the Termination Fee is incurred
that relate to the appreciation of the properties, on the value of which the Termination Fee is based, (i) will be reduced by the portion of the Termination Fee otherwise payable which relate to properties or periods with respect to which the
Advisor did not provide the Advisees substantial services and (ii) will not be due and payable, nor bear interest, until the property to which the Termination Fee relates is sold or refinanced. 
  
 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 

  

 9 

 
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 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. 
  
 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; provided that (i) the Board of Directors must have determined, in good faith, that such course of conduct was in the best interests of an
Advisee and did not constitute negligence or misconduct by the Advisor or its Affiliates; (ii) such conduct was within the scope of authority of the Advisor; and (iii) any such indemnification shall be recoverable only from the assets of the
Advisees and not from the assets of the stockholders, partners or directors of the Advisees, as the case may be. Notwithstanding the foregoing, the Advisor or its Affiliates shall not be indemnified for any liability, loss or damage incurred by the
Advisor or its Affiliates in connection with any claim or settlement involving allegations that federal or state securities laws were violated by the Advisor or its Affiliates unless: (a) the Advisor or its Affiliates seeking indemnification are
successful in defending such action on the merits of each count involving securities law violations; or (b) such claims have been dismissed with prejudice on the merits by a court of competent jurisdiction; or (c) a court of competent jurisdiction
approves a settlement of the claims against the Advisor or its Affiliates seeking indemnification involving securities law violations and finds that indemnification of the settlement and related costs should be made; or (d) indemnification is
specifically approved by a court of competent jurisdiction in each such case. 
  

 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:Engagement Agreement

 Exhibit 10.10 
  
 Engagement Agreement 
  
 TRANSGENOMIC Inc. (together with its subsidiaries and affiliates the “COMPANY”) 
  
 The parties to this Engagement Agreement (the “Agreement”) include Goldsmith, Agio,
Helms Securities, Inc. (“GAHS”) on the one hand, and the COMPANY on the other hand. This is to confirm the COMPANY’s retention of GAHS for a minimum period of four (4) months from the date hereof (the “Minimum Term”), as its
exclusive financial advisor to assist it with a merger, sale, or any similar transaction related to the COMPANY’s Synthetic Nucleic Acid Business Unit, (including both the Boulder, Colorado site and the Glasgow, Scotland site) (the
“SNABU”). After four (4) months, GAHS will proceed on such basis as is reasonably agreed upon between the parties or on a holdover basis until either GAHS or the COMPANY provides the other with written 30-day notice of termination of this
Agreement. 
  

	1.	GAHS’s Performance. Throughout the course of its engagement, GAHS and the COMPANY will follow all Process Guidelines set forth in Exhibit A.

  

	2.	Types of Transactions Covered. Transactions covered under this Agreement (individually, a “Transaction” and collectively, “Transactions”) include
any sale, exchange or other disposition of all or a material (more than 10 percent) portion of the SNABU, whether accomplished by a sale of assets or stock by or through the COMPANY and/or the Shareholders (whether effected in one Transaction or a
series of Transactions), and shall include without limitation any merger, tender or exchange offer, joint venture, equity investment, recapitalization, or any other Transaction, the effect of which is to change the financial structure, control or
ownership of the SNABU. If a Transaction is completed during the term of this Agreement, GAHS shall be entitled to its Accomplishment Fee provided herein. 

  

	3.	Equitable Protection Period. If, during the term of this Agreement, or within a period of nine (9) months following termination of this Agreement, the COMPANY or its
Shareholders enter into an agreement in principle to consummate a Transaction with a GAHS Prospect as defined below, GAHS’s Accomplishment Fee shall be due and payable in full upon closing of such Transaction pursuant to Paragraph 5 below. For
purposes of this Agreement, “GAHS Prospect” includes any party or parties (i) that execute a Confidentiality Agreement pertaining to the sales process contemplated hereby; (ii) that GAHS actually contacts, as evidenced by GAHS’s
correspondence records, and the party, at that time, is not interested in pursuing a Transaction as is documented by the sending or receipt of written documentation that evidences said non-interest; (iii) that GAHS proposes in good faith to contact
but, at the COMPANY’s request, does not approach; (iv) with which the COMPANY or its Shareholders have any discussions relative to a possible Transaction during the term of this Agreement or the one-year period prior to the date of this
Agreement; or (v) who participate in a Transaction wherein the services of GAHS are utilized by the COMPANY or its Shareholders. GAHS Prospects include all affiliates of a “GAHS Prospect” as defined above. The COMPANY agrees to provide
GAHS with the names and key contacts of all parties who have contacted the COMPANY or its Shareholders or whom the COMPANY or its Shareholders have contacted relative to a possible Transaction in the one-year term prior to the date of this
Agreement. 

  

	4.	Accomplishment Fee and Total Consideration. The amount payable by COMPANY to GAH at closing of a Transaction (the “Accomplishment Fee”) shall be calculated
as provided below (subject to a minimum fee of $500,000)(the “Minimum Fee”): 

  

	 	•	2.5 percent of the first $20.0 million of Total Consideration; plus 

  

 1 

	 	•	5.0 percent of the next $15.0 million of Total Consideration; plus 

  

	 	•	10.0 percent of Total Consideration in excess of $35.0 million. 

  
 In addition, if a purchase agreement relating to a Transaction is entered into within four months from the date of this Agreement, then GAH will be
entitled to additional Accomplishment Fee equal to the greater of: (x) $100,000; or (y) 50 basis points (0.005) of Total Consideration. 
  
 GAHS’s Accomplishment Fee shall be based upon the total consideration (“Total Consideration”) paid or payable to the COMPANY, its
shareholders, employees or other security holders in connection with, or in anticipation of, the Transaction, including amounts placed in escrow, and shall include without limitation: 
  

	 	(a)	Cash paid and securities transferred to the COMPANY and/or holders of its securities at closing, including the cash value of any outstanding stock options or warrants, whether
vested or not, that are “rolled over” or “cashed out” as part of this Transaction; 

  

	 	(b)	In the case of a sale of stock by the COMPANY’s shareholders, all liabilities of the COMPANY, other than trade payables, operating leases and operating expenses accrued in the
ordinary course of business. In the case of a sale of assets, all liabilities of the COMPANY, other than trade payables, intercompany debt and accrued operating expenses, which are assumed by the buyer; 

  

	 	(c)	The net present value (applying a discount rate equal to the then prevailing prime rate as quoted in The Wall Street Journal) of scheduled payments provided for in any leases
by the purchaser of assets owned and retained by the COMPANY, its shareholders, or any affiliates thereof; 

  

	 	(d)	The principal amount of deferred installments of the purchase price including promissory notes; 

  

	 	(e)	Amounts payable under consulting agreements, above-market employment contracts, above non-compete agreements or similar arrangements; 

  

	 	(f)	Future payments that are contingent on the future earnings or operations of the SNABU (or in the case of an asset sale, the underlying assets), with the value of such payments
included in Total Consideration based on the present value of the reasonably expected amount of such contingent payments based on COMPANY projections or in the absence of projections, as determined in good faith by the COMPANY and GAHS, utilizing a
12 percent per annum discount rate; 

  

	 	(g)	The value of any retained or acquired interest in the SNABU or its successor, or the right to acquire such interest. 

  

	5.	Payment of Accomplishment Fee. Except as otherwise provided below, the Accomplishment Fee shall be paid to GAHS or its assigns in cash via wire transfer at the time of
closing a Transaction. In the event that all or a portion of the Total Consideration includes securities or other property (other than installment notes), the portion of GAHS’s Accomplishment Fee attributable thereto shall be payable at closing
in cash, based on the fair market value of such non-cash items as determined by mutual agreement of the parties. In the event the parties are unable to agree on the fair market value, GAHS shall have the option to receive payment in like kind or to
cause an independent appraiser acceptable to the COMPANY to determine fair market value; the expense of the appraisal shall be shared equally by the parties. 

  

	6.	Consulting Fees and Expenses. The COMPANY shall pay to GAHS a cash consulting fee of $60,000, payable as follows: $15,000 monthly in advance for the term of this
Agreement. Any amounts actually paid to GAHS as consulting fees will be offset against any Accomplishment Fee. The COMPANY also 

  

 2 

 shall reimburse GAHS monthly in arrears for all reasonable out-of-pocket expenses incurred on behalf of
the COMPANY. GAHS will secure the COMPANY’s verbal or written authorization before incurring any expenses in excess of $500 and shall use COMPANY authorized travel agents when booking travel unless a written waiver is obtained in each instance.
GAHS shall provide detailed monthly itemized summaries of expenses for which reimbursement is requested by GAHS. The COMPANY agrees that any unpaid payment (or portion thereof) of any fee, expense, consulting fee, or other amount payable to GAHS
shall bear interest payable at the highest rate of interest permissible by law, but not to exceed 12 percent per annum, from the date that such payment is due hereunder to the date that said payment is paid in full. 
  

	7.	Indemnification and Other Matters. The COMPANY and GAHS agree to the provisions of the attached Exhibit B, which relates to indemnification and other matters and which
is in its entirety incorporated by reference herein. The COMPANY will cause the definitive merger or purchase agreement relating to a Transaction to include an “entire agreement,” “integration,” or similar clause, which in
substance provides that such agreement contains the entire agreement between the parties with respect to the Transaction and that it supersedes all prior agreements, understandings, promises, undertakings, representations, and warranties, whether
written or oral, made by the parties to one another and/or by GAHS to the buyer relating to the Transaction. 

  

	8.	Reliance. The COMPANY will furnish GAHS with such information regarding the business and financial condition of the SNABU as is reasonably requested, all of which will
be, to the best of COMPANY’s and information and belief, accurate and complete in all material respects at the time furnished. The COMPANY will promptly notify GAHS if it learns of any material misstatement in, or material omission from, any
information previously delivered to GAHS. On an ongoing basis, the COMPANY will inform GAHS of any material developments or matters that occur or come to the attention of the COMPANY, its Shareholders, directors, officers, employees or affiliates.
The COMPANY, to the best of its information and belief, represents that the information contained in the Confidential Memorandum described in Exhibit A (the “Confidential Memorandum”) will not contain any untrue statement of material fact
or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances in which they were made, not misleading. In performing its services hereunder, GAHS shall be entitled to rely without investigation
upon all information that is available from public sources as well as all other information supplied to it by or on behalf of the COMPANY or its advisors and shall not in any respect be responsible for the accuracy or completeness of, or have any
obligation to verify, the same or to conduct any appraisal of assets. 

  

	9.	Arbitration. The COMPANY and GAHS agree that any dispute between them in any way relating to this Agreement (including, but not limited to, its formation,
interpretation or termination or any alleged breach hereof) shall be determined and settled by arbitration in Wilmington, Delaware, in accordance with the rules of the American Arbitration Association. All costs associated with any such disputes
(including both parties’ legal fees) shall be allocated between the parties by the arbitrators. The arbitrators shall have the power and authority to, and to the fullest extent practicable shall, abbreviate arbitration discovery in a manner
that is fair to all parties in order to expedite the conclusion of the arbitration proceeding. All decisions and awards of the arbitrators shall be final and binding on both parties and may be enforced by any court with jurisdiction.

  

	10.	Fairness Opinion. Subject to the mutual good faith written agreement of the parties and for a fee of $125,000 , GAHS shall undertake a study to enable it to render its
opinion with respect to the fairness from a financial point of view of the consideration proposed to be paid to the COMPANY or its shareholders in connection with a Transaction. 

  

	11.	Miscellaneous. All questions arising hereunder shall be determined according to the laws of the State of Delaware, except for any conflicts of laws provisions. The
parties acknowledge and agree that their respective rights and obligations are contractual in nature, that GAHS shall act as an independent contractor hereunder with duties owed solely to the COMPANY, and each party disclaims any intention to impose
fiduciary or other non-contractual obligations on the other by virtue of the engagement contemplated by this Agreement. Any advice or opinion provided by GAHS shall not be disclosed to any third party or 

  

 3 

	

 disclosed or referred to publicly, except with the prior written consent of GAHS. Any term
or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term
or provision in any other situation or in any other jurisdiction. This Agreement incorporates the entire understanding of the parties regarding the subject matter hereof, and supersedes all previous agreements or understandings regarding the same,
whether written or oral. The provisions of this Paragraph and Paragraphs 3, 4, 5, 6, 7, 8, 9, 10 and 11 will survive the termination of this Agreement. 
  
 Read and agreed to this 18th day of
March, 2004 by: 
  

							
	TRANSGENOMIC, INC. :	 	GOLDSMITH, AGIO, HELMS SECURITIES, INC.:
		
	
	 	

				
	 By:
	 	  

	 	By:	 	  

				
	 Its:
	 	  

	 	Its:	 	  

			
	 	 	 	 	  

				
	 	 	 	 	By:	 	  

				
	 	 	 	 	Its:	 	  

 EXHIBIT A 
  

to 
  
 Engagement Agreement 
  
 GOLDSMITH, AGIO, HELMS & LYNNER, LLC 
  
 and 
  
 Transgenomic,
Inc. 
  
 PROCESS GUIDELINES 
  
 In the course of GAHS’s engagement hereunder, GAHS will exercise its commercially
reasonable efforts to: 
  

	(a)	Maintain strict confidentiality of all financial and other proprietary information, data, and materials relating to the SNABU except as provided below. 

  

	(b)	Familiarize itself with the business, operations, physical assets, financial condition and prospects of the SNABU. 

  

	(c)	Develop a list of potential buyers of the SNABU whom GAHS believes in good faith to be financially qualified and potentially interested in participating in a Transaction.

  

	(d)	Not share with any GAHS Prospect the identity of the SNABU or any confidential information relating to the COMPANY unless the GAHS Prospect has executed a Confidentiality
Agreement in a form pre-approved by the COMPANY. 

  

	(e)	Contact GAHS Prospects on the COMPANY’s behalf and, as appropriate, arrange for and orchestrate meetings between GAHS Prospects and the SNABU. 

  

	(f)	Assist the COMPANY in preparation of a Confidential Memorandum describing the SNABU, and other analyses and data as may be reasonably requested by GAHS Prospects. The
Confidential Memorandum may not be reproduced or distributed to parties other than the COMPANY’s Shareholders, officers, directors, employees and representatives without GAHS’s prior written consent. 

  

	(g)	Work in the capacity outlined above with the COMPANY’s legal counsel, accountants, and other advisors as reasonably requested and directed by the COMPANY.

  

	(h)	Present to the COMPANY all proposals from GAHS Prospects, and make recommendations as to the COMPANY’s appropriate negotiating strategy and course of conduct.

  

	(i)	Assist in all negotiations and in all document review as reasonably requested and directed by the COMPANY. 

  

	(j)	If the COMPANY requests that GAHS provide additional services not otherwise set forth in this Agreement, the COMPANY and GAHS will enter into an additional agreement that will set
forth the nature and scope of the services, appropriate compensation and other customary matters. 

  

 5 

 EXHIBIT B 
  

to 
  
 Engagement Agreement 
  
 GOLDSMITH, AGIO, HELMS & LYNNER, LLC 
  
 and 
  
 Transgenomic,
Inc. 
  
 INDEMNIFICATION and OTHER MATTERS 

 

	1)	The COMPANY agrees to indemnify and hold GAH (which term, for purposes of this paragraph, includes it, its affiliates and its and their respective directors, officers, employees,
shareholders, controlling persons, partners, and members) harmless against and from all losses, claims, damages or liabilities, and all actions, claims, proceedings and investigations in respect thereof (collectively, “Losses”), arising
out of or in connection with this engagement or the performance by GAH of services on behalf of the company, and to timely reimburse GAH for all reasonable legal and other out-of-pocket expenses as incurred by GAH in connection with investigating,
preparing to defend or defending any such Losses (including costs of GAH personnel required to testify or otherwise assist in any litigation calculated at customary per diem or hourly rates), whether or not GAH is named as a party thereto; provided,
however, that the COMPANY shall not be liable to the extent such Losses are determined by arbitration as herein provided (not subject to judicial review or appeal) to have resulted primarily and directly from GAH’s gross negligence or willful
misconduct. If such indemnification and reimbursement are insufficient or unavailable pursuant to, or as a result of, the foregoing sentence or otherwise, the COMPANY and GAH agree to make contributions to any Losses paid or payable in such
proportion as appropriately reflects the relative economic benefits received by, and fault of, the COMPANY and its Shareholders, on the one hand, and GAH, on the other hand, as well as other equitable considerations; provided, however that the
COMPANY agrees to make contributions to any Losses paid or payable such that GAH will not be liable for more than the Accomplishment Fee received by GAH pursuant to this Agreement. The COMPANY further agrees that GAH shall have no liability to the
COMPANY in excess of the Accomplishment Fee received by GAH pursuant to this Agreement. The foregoing rights to indemnification and contribution shall not limit any other rights that GAH may have at law or otherwise. The COMPANY further agrees that
without the written consent of GAH, the COMPANY will not settle or compromise any pending or threatened action, claim, proceeding, or investigation with respect to which indemnification or contribution may be sought hereunder unless such settlement
or compromise includes an unconditional release of GAH from all liability resulting from such action, claim, proceeding, or investigation. 

  

	2)	Not later than thirty (30) days after receipt by GAHS of notice of the commencement of any action, suit or proceeding, GAHS will, if a claim in respect thereof is to be made against
the COMPANY under this Agreement, notify the COMPANY of the commencement thereof; but the omission so to notify the COMPANY will not relieve it from any liability which it may have to GAHS otherwise than under this Agreement. With respect to any
such action, suit or proceeding as to which GAHS notifies the COMPANY of the commencement thereof: 

  

	 	(a)	the COMPANY will be entitled to participate therein at its own expense; 

  

 6 

	 	(b)	except as otherwise provided in this section, and so long as the COMPANY has irrevocably agreed that it will indemnify GAHS for all losses with respect to such action, suit or
proceeding, the COMPANY may, at its option and jointly with any other indemnifying party similarly notified and electing to assume such defense, assume the defense of any claims asserted pursuant to the indemnities granted GAHS under this Agreement,
with COMPANY’S chosen counsel reasonably satisfactory to GAHS. After notice from the COMPANY to GAHS of its election to assume the defense thereof, the COMPANY will not be liable to GAHS under this Agreement for any legal or other expenses
subsequently incurred by GAHS in connection with the defense thereof except for reasonable costs of investigation or otherwise as provided in this section. GAHS shall have the right to employ separate counsel in such action, suit or proceeding but
the fees and expenses of such counsel incurred after notice from the COMPANY of its assumption of the defense thereof shall be at the expense of GAHS unless (i) the employment of counsel by GAHS has been authorized by the COMPANY, which
authorization will not be unreasonably withheld, (ii) GAHS shall have reasonably concluded as supported by its detailed written notification the COMPANY, that there is a fundamental material conflict of interest between the COMPANY and GAHS in the
conduct of the defense of such action or (iii) the COMPANY shall not in fact have employed counsel to assume the defense of such action, in each of which cases the reasonable fees and expenses of GAHS’s separate counsel shall be at the expense
of the COMPANY. The COMPANY shall not be entitled to assume the defense of any action, suit or proceeding brought by or on behalf of the COMPANY or as to which GAHS shall have made the conclusion provided for in clause (ii) above; and

  

	 	(c)	the COMPANY shall not be liable to indemnify GAHS under this Agreement for any amounts paid in settlement of any action or claim effected without its written consent, which shall
not be unreasonably withheld. 

  

	3)	Not withstanding the foregoing, no indemnity shall be paid by the COMPANY on account of any claim against GAHS solely for an accounting of profits made from the purchase or sale by
GAHS of securities of the COMPANY pursuant to the provisions of Section 16(b) of the Securities Exchange Act of 1934 and amendments thereto or similar provisions of any federal, state or local statutory law. 

  

 7

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