Document:

EX 10-1 20150123 Schram Employment Agreement

EXHIBIT 10.1

AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT
This AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into as of the 1st day of January 2015, by and between IZEA, Inc., a Nevada corporation headquartered at 480 N. Orlando Avenue, Suite 200, Winter Park, Florida 32789 (the “Company”), and Ryan S. Schram, an individual residing at 1894 Bristol Court, Milford, Michigan 48380 (“Executive”). As used herein, the “Effective Date” of this Agreement shall mean January 1, 2015. This Agreement supersedes, amends and restates in its entirety that certain Executive Employment Agreement, dated as of July 30, 2011, as amended by Compensation Addendum dated November 3, 2013, between the Company and Executive.
W I T N E S S E T H:
WHEREAS, the Executive desires to be employed by the Company as its Chief Operating Officer and the Company wishes to employ Executive in such capacity;
NOW, THEREFORE, in consideration of the foregoing recital and the respective covenants and agreements of the parties contained in this document, the Company and Executive hereby agree as follows:
1.Employment and Duties. The Company agrees to employ and Executive agrees to serve as the Company’s Chief Operating Officer. The duties and responsibilities of Executive shall include the duties and responsibilities as the Board of Directors of the Company (the “Board”) may from time to time assign to Executive.
Executive shall devote substantially all of his working time and efforts during the Company’s normal business hours to the business and affairs of the Company and its subsidiaries and to the diligent and faithful performance of the duties and responsibilities duly assigned to him pursuant to this Agreement. Provided that none of the additional activities interferes with the performance of the duties and responsibilities of Executive or are determined to be inconsistent with the position, standing, stature, reputation or best interests of the Company, nothing in this Section 1 shall prohibit Executive from (a) serving as a director or member of a committee of up to two (2) entities that do not, in the good faith determination of the Board, compete or present the appearance of competition with the Company or otherwise create, or could create, in the good faith determination of the Board, a conflict of interest or appearance of a conflict of interest with the business of the Company; (b) delivering lectures, fulfilling speaking engagements, and any writing or publication relating to his area of expertise; provided, that any fees, royalties or honorariums received therefrom shall be promptly turned over to the Company; (c) serving as a director or trustee of any governmental, charitable or educational organization; or (d) engaging in additional activities in connection with personal investments and community affairs; provided that such activities are not inconsistent with Executive’s duties under this Agreement and do not violate the terms of Section 13.

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2.Term. The term of this Agreement shall commence on the Effective Date and shall continue through December 31, 2017, and shall be automatically renewed for successive one (1) year periods thereafter unless either party provides the other party with written notice of his or its intention not to renew this Agreement at least three (3) months prior to the expiration of the Initial Term or any renewal term of this Agreement. “Employment Period” shall mean the Initial Term plus renewals, if any.
3.Place of Employment. Executive’s primary office location shall be his home office in Michigan; provided, however, that Executive shall be expected to and will spend significant time at the Company’s offices located in Winter Park, Florida as mutually determined by the parties. The parties acknowledge that Executive may be required to travel in connection with the performance of his duties hereunder.
4.Base Salary. For all services to be rendered by Executive pursuant to this Agreement, the Company agrees to pay Executive during the Employment Period a base salary (the “Base Salary”) at an annual rate of $240,000. Executive shall receive a guaranteed Base Salary increase of no less than 2% on April 1 of each calendar year beginning in 2015. The Base Salary shall be paid in periodic installments in accordance with the Company’s regular payroll practices.
5.Bonuses.  The Executive shall be eligible to receive an annual and quarterly bonus the (“Bonus”) as set forth in the attached Schedule A (unless adjusted by the Compensation Committee of the Board (the “Compensation Committee”)). The Bonus shall be paid by the Company to the Executive promptly after determination that the relevant targets have been met; it being understood that the attainment of any financial targets associated with any bonus shall not be determined until following the completion of the Company’s quarterly review and shall be paid promptly following the Company’s announcement of earnings but, in any event, not later than the earlier of (a) fifteen (15) days following the filing of the Company’s Quarterly Report on Form 10-Q or Annual Report on Form 10-K for such quarter or (b) the fourth pay period after such quarter or eighth pay period after year end. In the event that the Compensation Committee is unable to act or if there shall be no such Compensation Committee, then all references herein to the Compensation Committee (except in the proviso to this sentence) shall be deemed to be references to the Board.
6.Severance Compensation. Upon termination of Executive’s employment prior to expiration of the Employment Period unless the Executive’s employment is terminated for Cause or Executive terminates his employment without Good Reason, the Executive shall be entitled to receive any and all reasonable expenses paid or incurred by the Executive in connection with and related to the performance of his duties and responsibilities for the Company during the period ending on the termination date, any accrued but unused vacation time through the termination date in accordance with Company policy and an amount equal to Executive’s Base Salary during the prior six months and Bonus and Override Bonus during the prior six months (the “Separation Period”), as in effect as of the date of termination (the “Separation Payment”), provided that Executive executes an agreement releasing Company and its affiliates from any liability associated with this Agreement in form and terms satisfactory to the Company and complies with his other obligations under this Agreement as provided in Section 12 and 13 hereof, as a condition to such Separation Payment. In the event that either party provides the other party with written notice not 

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to renew this Agreement at least three (3) months prior to the expiration of the Employment Period pursuant to Section 2 and the Company, after such notice, terminates Executive’s employment prior to the expiration of the Employment Period, the date of termination for purposes of this Section 6 shall be construed to be the expiration of the Employment Period; the effect of which shall be that Executive shall continue to receive his Base Salary, Bonuses and other perquisites and benefits specified in this Agreement through the stated Employment Period after which the Severance Compensation as specified in this Section 6 shall commence.  For purposes of illustration, in the event that Executive notifies Company on September 15, 2017 of his intention not to renew this Agreement and Company, on September 16, 2017 terminates Executive’s employment, Executive shall be entitled to receive his Base Salary, Bonuses and other perquisites and benefits specified in this Agreement in full through December 31, 2017 as if still employed by Company with the Severance Compensation specified in this Section 6 to commence on January 1, 2018.  In addition, the Executive’s cost of COBRA coverage will be covered for a period of six months following the date of termination. The Separation Payment shall be paid in accordance with the customary payroll practices of the Company.
7.Equity Awards.  The Executive shall be eligible for such grants of awards under a Company incentive plan (or any successor or replacement plan adopted by the Board and approved by the stockholders of the Company) (the “Plan”) as the Compensation Committee or Board may from time to time determine (the “Share Awards”). Share Awards shall be subject to the applicable Plan terms and conditions; provided, however, that Share Awards shall be subject to any additional terms and conditions as are provided herein or in any award certificate(s), which shall supersede any conflicting provisions governing Share Awards provided under the Plan. The Executive will be eligible for option grants as outlined in Schedule B.
8.Clawback Rights. (a) The Bonus, and any and all stock based compensation (such as options and equity awards) (collectively, the “Clawback Benefits”) shall be subject to “Company Clawback Rights,” as follows: During the period that the Executive is employed by the Company and upon the termination of the Executive’s employment and for a period of one (1) year thereafter, if there is a Restatement (as defined below) of any financial results from which any Clawback Benefits to Executive shall have been determined, Executive agrees to repay any Clawback Benefits amounts which were determined by reference to any Company financial results which were later restated (as defined below), to the extent the Clawback Benefits amounts paid exceed the Clawback Benefits amounts that would have been paid, based on the Restatement of the Company’s financial information. All Clawback Benefits amounts resulting from such restated financial results shall be retroactively adjusted by the Compensation Committee to take into account the restated results, and any excess portion of the Clawback Benefits resulting from such restated results shall be immediately surrendered to the Company and if not so surrendered within ninety (90) days of the revised calculation being provided to the Executive by the Compensation Committee following a publicly announced Restatement, the Company shall have the right to take any and all action to effectuate such adjustment. The calculation of the Revised Clawback Benefits amount shall be determined by the Compensation Committee and applicable law, rules and regulations. All determinations by the Compensation Committee with respect to the Clawback Rights shall be final and binding on the Company and Executive. The Clawback Rights shall be subject to applicable law, rules and regulations.  For purposes of this Section 8, a restatement of financial results that requires a 

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repayment of a portion of the Clawback Benefits amounts shall mean “a restatement resulting from material non-compliance of the Company with any financial reporting requirement under the federal securities laws and shall not include a restatement of financial results resulting from subsequent changes in accounting pronouncements or requirements which were not in effect on the date the financial statements were originally prepared (“Restatement”). The parties acknowledge it is their intention that the foregoing Clawback Rights as relates to Restatement conform in all respects to the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd Frank Act”) and requires recovery of all “incentive-based” compensation, pursuant to the provisions of the Dodd Frank Act and any and all rules and regulations promulgated thereunder from time to time in effect. Accordingly, the terms and provisions of this Agreement shall be deemed automatically amended from time to time to assure compliance with the Dodd Frank Act and such rules and regulation as hereafter may be adopted and in effect.
(b)    Notwithstanding the foregoing, the Clawback Benefits, including Share Awards, shall be subject to automatic forfeiture to the Company if at any time during the period that the Executive is employed by the Company and upon the termination of the Executive’s employment and for a period of one (1) year thereafter if there is (i) any breach of any Agreement by Executive relating to confidentiality, non-competition, non-raid of employees, or non-solicitation of vendors or customers; or (ii) any material breach of Company policy or procedures which causes harm to the Company, as determined by the Board (collectively, the “Fiduciary Clawbacks”). In the event of a Fiduciary Clawback, the Executive shall forfeit the Clawback Benefits, including Share Awards, to the Company within ninety (90) days of the occurrence of a breach pursuant to (i) or (ii) herein.
9.Expenses. Executive shall be entitled to prompt reimbursement by the Company for all reasonable ordinary and necessary travel, entertainment, and other expenses incurred by Executive while employed (in accordance with the policies and procedures established by the Company for its senior executive officers) in the performance of his duties and responsibilities under this Agreement; provided that Executive shall properly account for such expenses in accordance with Company policies and procedures.
10.Other Benefits.  During the term of this Agreement, the Executive shall be eligible to participate in incentive, stock purchase, savings, retirement (401(k)), and welfare benefit plans, including, without limitation, health, medical, dental, vision, life (including accidental death and dismemberment) and disability insurance plans (collectively, “Benefit Plans”), in substantially the same manner and at substantially the same levels as the Company makes such opportunities available to the Company’s managerial or salaried executive employees. The Executive shall be entitled to five (5) weeks of vacation (in addition to the usual national holidays) during each contract year during which he serves hereunder. Such vacation shall be taken at such time or times as will be mutually agreed between the Executive and the Company. Vacation not taken during a calendar year may not be carried forward.
11.Termination of Employment.
(a)Death. If Executive dies during the Employment Period, this Agreement and the Executive’s employment with the Company shall automatically terminate and the Company 

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shall have no further obligations to the Executive or his heirs, administrators or executors with respect to compensation and benefits accruing thereafter, except for the obligation to pay to the Executive’s heirs, administrators or executors any earned but unpaid Base Salary, unpaid pro rata Bonus for the current year through the date of death, reimbursement of any and all reasonable expenses paid or incurred by the Executive in connection with and related to the performance of his duties and responsibilities for the Company during the period ending on the termination date and any accrued but unused vacation time through the termination date in accordance with Company policy. The Company shall deduct, from all payments made hereunder, all applicable taxes, including income tax, FICA and FUTA, and other appropriate deductions. In addition, the Executive’s spouse and minor children shall be entitled to Medical Continuation Coverage including, without limitation, health, medical, dental plans.
(b)Disability. In the event that, during the term of this Agreement the Executive shall be prevented from performing his duties and responsibilities hereunder to the full extent required by the Company by reason of Disability (as defined below), this Agreement and the Executive’s employment with the Company shall automatically terminate and the Company shall have no further obligations or liability to the Executive or his heirs, administrators or executors with respect to compensation and benefits accruing thereafter, except for the obligation to pay the Executive or his heirs, administrators or executors any earned but unpaid Base Salary, unpaid pro rata Bonus for the current year accrued through the Executive’s last date of employment with the Company, reimbursement of any and all reasonable expenses paid or incurred by the Executive in connection with and related to the performance of his duties and responsibilities for the Company during the period ending on the termination date and any accrued but unused vacation time through the termination date in accordance with Company policy. The Company shall deduct, from all payments made hereunder, all applicable taxes, including income tax, FICA and FUTA, and other appropriate deductions through the last date of the Executive’s employment with the Company. In addition, the Executive’s spouse and minor children shall be entitled to Medical Continuation Coverage. For purposes of this Agreement, “Disability” shall mean a physical or mental disability that prevents the performance by the Executive, with or without reasonable accommodation, of his duties and responsibilities hereunder for a period of not less than an aggregate of three (3) months during any twelve (12) consecutive months. If this Agreement is terminated for Disability, the Executive will receive his then current salary until such time (but not more than 120 days after such disability) as payments begin under any disability insurance plan of the Executive.
(c)Cause.
(1)At any time during the Employment Period, the Company may terminate this Agreement and the Executive’s employment hereunder for Cause. For purposes of this Agreement, “Cause” shall mean: (a) the willful and continued failure of the Executive to perform substantially his duties and responsibilities for the Company (other than any such failure resulting from Executive’s death or Disability) after a written demand by the Board for substantial performance is delivered to the Executive by the Company, which specifically identifies the manner in which the Board believes that the Executive has not substantially performed his duties and responsibilities, which willful and continued failure is not cured by the Executive within thirty (30) days of his receipt of such written demand; (b) the conviction of, or plea of guilty or nolo contendere 

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to, a felony; or (c) fraud, dishonesty or gross misconduct which is materially and demonstratively injurious to the Company. Termination under clauses (b) or (c) of this Section 11(c)(1) shall not be subject to cure.
(2)For purposes of this Section 11(c), no act, or failure to act, on the part of Executive shall be considered “willful” unless done, or omitted to be done, by him in bad faith and without reasonable belief that his action or omission was in, or not opposed to, the best interest of the Company (including reputationally). Prior to any termination for Cause, Executive will be given five (5) business days written notice specifying the alleged Cause event and will be entitled to appear (with counsel) before the full Board to present information regarding his views on the Cause event, and after such hearing, there is at least a majority vote of the full Board (other than Executive) to terminate him for Cause. After providing the notice in foregoing sentence, the Board may suspend the Executive with full pay and benefits until a final determination pursuant to this Section 11 (c) has been made.
(3)Upon termination of this Agreement for Cause, the Company shall have no further obligations or liability to the Executive or his heirs, administrators or executors with respect to compensation and benefits thereafter, except for the obligation to pay the Executive any earned but unpaid Base Salary, reimbursement of any and all reasonable expenses paid or incurred by the Executive in connection with and related to the performance of his duties and responsibilities for the Company during the period ending on the termination date and any accrued but unused vacation time through the termination date in accordance with Company policy. The Company shall deduct, from all payments made hereunder, all applicable taxes, including income tax, FICA and FUTA, and other appropriate deductions.
(d)Good Reason and Without Cause.
(1)At any time during the term of this Agreement, subject to the conditions set forth in Section 11(d)(2) below, the Executive may terminate this Agreement and the Executive’s employment with the Company for “Good Reason.” For purposes of this Agreement, “Good Reason” shall mean the occurrence of any of the following events: (A) the assignment, without the Executive’s consent, to the Executive of duties that are significantly different from, and that result in a substantial diminution of, the duties that he assumed on the Effective Date; (B) the assignment, without the Executive’s consent, to the Executive of a title that is different from and subordinate to the title Chief Operating Officer of the Company or any subsidiary; provided, however, for the absence of doubt following a Change of Control, should the Executive cease to retain either the role or responsibilities assumed on the Effective Date, or Executive is required to serve in a diminished capacity or lesser role, in a division, subsidiary or unit of another entity continuing the Company’s business (including the acquiring entity), such event shall constitute Good Reason regardless of the title of Executive in such acquiring company, division or unit; or (C) material breach by the Company of this Agreement.
(2)Executive shall not be entitled to terminate this Agreement for Good Reason unless and until he shall have delivered written notice to the Company within ninety (90) days of the date upon which the facts giving rise to Good Reason occurred of his intention to terminate this Agreement and his employment with the Company for Good Reason, which notice 

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specifies in reasonable detail the circumstances claimed to provide the basis for such termination for Good Reason, and the Company shall not have eliminated the circumstances constituting Good Reason within thirty (30) days of its receipt from the Executive of such written notice.
(3)In the event that the Executive terminates this Agreement and his employment with the Company for Good Reason or the Company terminates this Agreement and Executive’s employment with the Company without Cause, the Company shall pay or provide to the Executive (or, following his death, to the Executive’s heirs, administrators or executors) the Separation Payment amount; provided, however, that in the event Executive elects to terminate this Agreement for Good Reason, such election must be made within ninety (90) days of the occurrence of the Change of Control and Executive shall be entitled to receive the Separation Payment. The Company shall deduct, from all payments made hereunder, all applicable taxes, including income tax, FICA and FUTA, and other appropriate deductions.
(4)Executive shall not be required to mitigate the amount of any payment provided for in this Section 11(d) by seeking other employment or otherwise, nor shall the amount of any payment provided for in this Section 11(d) be reduced by any compensation earned by the Executive as the result of employment by another employer or business or by profits earned by Executive from any other source at any time before and after the termination date. The Company’s obligation to make any payment pursuant to, and otherwise to perform its obligations under, this Agreement shall not be affected by any offset, counterclaim or other right that the Company may have against Executive for any reason. Notwithstanding anything herein to the contrary, the benefits to Executive under this Agreement shall be reduced by the amount of any insurance proceeds.
(e)Without “Good Reason” by Executive. At any time during the term of this Agreement, the Executive shall be entitled to terminate this Agreement and the Executive’s employment with the Company without Good Reason by providing prior written notice of at least thirty (30) days to the Company. Upon termination by the Executive of this Agreement or the Executive’s employment with the Company without Good Reason, the Company shall have no further obligations or liability to the Executive or his heirs, administrators or executors with respect to compensation and benefits thereafter, except for the obligation to pay the Executive any earned but unpaid Base Salary, reimbursement of any and all reasonable expenses paid or incurred by the Executive in connection with and related to the performance of his duties and responsibilities for the Company during the period ending on the termination date and any accrued but unused vacation time through the termination date in accordance with Company policy. The Company shall deduct, from all payments made hereunder, all applicable taxes, including income tax, FICA and FUTA, and other appropriate deductions.
(f)Change of Control. For purposes of this Agreement, “Change of Control” shall mean the occurrence of any one or more of the following: (i) the accumulation (if over time, in any consecutive twelve (12) month period), whether directly, indirectly, beneficially or of record, by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended) of 50.1% or more of the shares of the outstanding Common Stock of the Company, whether by merger, consolidation, sale or other transfer of shares of Common Stock (other than a merger or consolidation where the stockholders of the Company 

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prior to the merger or consolidation are the holders of a majority of the voting securities of the entity that survives such merger or consolidation), (ii) a sale of all or substantially all of the assets of the Company or (iii) during any period of twelve (12) consecutive months, the individuals who, at the beginning of such period, constitute the Board, and any new director whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors at the beginning of the 12-month period or whose election or nomination for election was previously so approved, cease for any reason to constitute at least a majority of the Board; provided, however, that the following acquisitions shall not constitute a Change of Control for the purposes of this Agreement: (A) any acquisitions of Common Stock or securities convertible, exercisable or exchangeable into Common Stock directly from the Company, or (B) any acquisition of Common Stock or securities convertible, exercisable or exchangeable into Common Stock by any employee benefit plan (or related trust) sponsored by or maintained by the Company. If there is a Change of Control, and subsequent thereto Executive's employment with the Company terminates at any time within six (6) months after such Change of Control for reasons other than as provided in Section 11(c) or 11(e), then Executive shall be paid pursuant to this Agreement an amount for the greater period of: (i) the Separation Period set forth in Section 6 or (ii) the period remaining between the date of such termination and the six (6) month anniversary of the Change of Control at Executive's then current Base Salary (pursuant to Section 4) at the date of termination.
(g)Any termination of the Executive’s employment by the Company or by Executive (other than termination by reason of Executive’s death) shall be communicated by written Notice of Termination to the other party of this Agreement. For purposes of this Agreement, a “Notice of Termination” shall mean a written notice which shall indicate the specific termination provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated; provided, however, failure to provide timely notification shall not affect the employment status of Executive.
12.Confidential Information.
(a)Disclosure of Confidential Information. The Executive recognizes, acknowledges and agrees that he has had and will continue to have access to secret and confidential information regarding the Company, its subsidiaries and their respective businesses (^”Confidential Information”), including but not limited to, its products, methods, formulas, software code, patents, sources of supply, customer dealings, data, know-how, trade secrets and business plans, provided such information is not in or does not hereafter become part of the public domain, or become known to others through no fault of the Executive. The Executive acknowledges that such information is of great value to the Company, is the sole property of the Company, and has been and will be acquired by him in confidence. In consideration of the obligations undertaken by the Company herein, the Executive will not, at any time, during or after his employment hereunder, reveal, divulge or make known to any person, any information acquired by the Executive during the course of his employment, which is treated as confidential by the Company, and not otherwise in the public domain. The provisions of this Section 12 shall survive the termination of the Executive’s employment hereunder.

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(b)The Executive affirms that he does not possess and will not rely upon the protected trade secrets or confidential or proprietary information of any prior employer(s) in providing services to the Company or its subsidiaries.
(c)In the event that the Executive’s employment with the Company terminates for any reason, the Executive shall deliver forthwith to the Company any and all originals and copies, including those in electronic or digital formats, of Confidential Information; provided, however, Executive shall be entitled to retain (i) papers and other materials of a personal nature, including, but not limited to, photographs, correspondence, personal diaries, calendars and rolodexes, personal files and phone books, (ii) information showing his compensation or relating to reimbursement of expenses, (iii) information that he reasonably believes may be needed for tax purposes, and (iv) copies of plans, programs and agreements relating to his employment, or termination thereof, with the Company.
13.Non-Competition and Non-Solicitation.
(a)The Executive agrees and acknowledges that the Confidential Information that the Executive has already received and will receive is valuable to the Company and that its protection and maintenance constitutes a legitimate business interest of the Company, to be protected by the non-competition restrictions set forth herein. The Executive agrees and acknowledges that the non-competition restrictions set forth herein are reasonable and necessary and do not impose undue hardship or burdens on the Executive. The Executive also acknowledges that the products and services developed or provided by the Company, its affiliates and/or its clients or customers are or are intended to be sold, provided, licensed and/or distributed to customers and clients primarily in and throughout the United States (the “Territory”) (to the extent the Company comes to operate, either directly or through the engagement of a distributor or joint or co-venturer, or sell a significant amount of its products and services to customers located, in areas other than the United States during the term of the Employment Period, the definition of Territory shall be automatically expanded to cover such other areas), and that the Territory, scope of prohibited competition, and time duration set forth in the non-competition restrictions set forth below are reasonable and necessary to maintain the value of the Confidential Information of, and to protect the goodwill and other legitimate business interests of, the Company, its affiliates and/or its clients or customers. The provisions of this Section 13 shall survive the termination of the Executive’s employment hereunder.
(b)The Executive hereby agrees and covenants that he shall not, during the Employment Period and any Separation Period, without the prior written consent of the Company, directly or indirectly, in any capacity whatsoever, including, without limitation, as an employee, employer, consultant, principal, partner, shareholder, officer, director or any other individual or representative capacity (other than (i) as a holder of less than two (2%) percent of the outstanding securities of a Company whose shares are traded on any national securities exchange or (ii) as a limited partner, passive minority interest holder in a venture capital fund, private equity fund or similar investment entity which holds or may hold an equity or debt position in portfolio companies that are competitive with the Company; provided, however, that the Executive shall be precluded from serving as an operating partner, general partner, manager or governing board designee with respect to such portfolio companies), or whether on the Executive’s own behalf or on behalf of any 

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other person or entity or otherwise howsoever, during the Employment Period and the Separation Period and thereafter to the extent described below, within the Territory:
(1)Engage, own, manage, operate, control, be employed by, consult for, participate in, or be connected in any manner with the ownership, management, operation or control of any business in competition with the business of the Company;
(2)Recruit, solicit or hire, or attempt to recruit, solicit or hire, any employee, or independent contractor of the Company to leave the employment (or independent contractor relationship) thereof, whether or not any such employee or independent contractor is party to an employment agreement, for the purpose of competing with the business of the Company;
(3)Attempt in any manner to solicit or accept from any customer of the Company, with whom Executive had significant contact during Executive’s employment by the Company (whether under this Agreement or otherwise), business of the kind or competitive with the business done by the Company with such customer or to persuade or attempt to persuade any such customer to cease to do business or to reduce the amount of business which such customer has customarily done or might do with the Company, or if any such customer elects to move its business to a person other than the Company, provide any services of the kind or competitive with the business of the Company for such customer, or have any discussions regarding any such service with such customer, on behalf of such other person; or
(4)Interfere with any relationship, contractual or otherwise, between the Company and any other party, including, without limitation, any supplier, distributor, co-venturer or joint venturer of the Company, for the purpose of soliciting such other party to discontinue or reduce its business with the Company.
With respect to the activities described in Paragraphs (1), (2), (3) and (4) above, the restrictions of this Section 13(b) shall continue during the Employment Period and until one (1) year following the termination of this Agreement or of the Executive’s employment with the Company (including upon expiration of this Agreement), whichever occurs later, unless this Agreement or Executive’s employment was terminated by Executive for Good Reason or by Company without Cause.
14.Section 409A.
The provisions of this Agreement are intended to comply with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and any final regulations and guidance promulgated thereunder (“Section 409A”), and shall be construed in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A. The Company and Executive agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to Executive under Section 409A.
To the extent that Executive will be reimbursed for costs and expenses or in-kind benefits, except as otherwise permitted by Section 409A, (a) the right to reimbursement or in- kind benefits is not subject to liquidation or exchange for another benefit, (b) the amount of expenses eligible for 

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reimbursement, or in-kind benefits, provided during any taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year; provided that the foregoing clause (b) shall not be violated with regard to expenses reimbursed under any arrangement covered by Section 105(b) of the Code solely because such expenses are subject to a limit related to the period the arrangement is in effect, and (c) such payments shall be made on or before the last day of the taxable year following the taxable year in which you incurred the expense.
A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits upon or following a termination of employment unless such termination constitutes a “Separation from Service” within the meaning of Section 409A and, for purposes of any such provision of this Agreement references to a “termination,” “termination of employment” or like terms shall mean Separation from Service.
Each installment payable hereunder shall constitute a separate payment for purposes of Treasury Regulation Section 1.409A-2(b), including Treasury Regulation Section 1.409A- 2(b)(2)(iii). Each payment that is made within the terms of the “short-term deferral” rule set forth in Treasury Regulation Section 1.409A-1(b)(4) is intended to meet the “short-term deferral” rule. Each other payment is intended to be a payment upon an involuntary termination from service and payable pursuant to Treasury Regulation Section 1.409A-l(b)(9)(iii), et seq., to the maximum extent permitted by that regulation, with any amount that is not exempt from Code Section 409A being subject to Code Section 409A.
Notwithstanding anything to the contrary in this Agreement, if Executive is a “specified employee” within the meaning of Section 409A at the time of Executive’s termination, then only that portion of the severance and benefits payable to Executive pursuant to this Agreement, if any, and any other severance payments or separation benefits which may be considered deferred compensation under Section 409A (together, the “Deferred Compensation Separation Benefits”), which (when considered together) do not exceed the Section 409A Limit (as defined herein) may be made within the first six (6) months following Executive’s termination of employment in accordance with the payment schedule applicable to each payment or benefit. Any portion of the Deferred Compensation Separation Benefits in excess of the Section 409A Limit otherwise due to Executive on or within the six (6) month period following Executive’s termination will accrue during such six (6) month period and will become payable in one lump sum cash payment on the date six (6) months and one (1) day following the date of Executive’s termination of employment. All subsequent Deferred Compensation Separation Benefits, if any, will be payable in accordance with the payment schedule applicable to each payment or benefit. Notwithstanding anything herein to the contrary, if Executive dies following termination but prior to the six (6) month anniversary of Executive’s termination date, then any payments delayed in accordance with this paragraph will be payable in a lump sum as soon as administratively practicable after the date of Executive’s death and all other Deferred Compensation Separation Benefits will be payable in accordance with the payment schedule applicable to each payment or benefit.
For purposes of this Agreement, “Section 409A Limit” will mean a sum equal (x) to the amounts payable prior to March 15 following the year in which Executive is terminated, plus (y) the lesser of two (2) times: (i) Executive’s annualized compensation based upon the annual rate of 

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pay paid to Executive during the Company’s taxable year preceding the Company’s taxable year of Executive’s termination of employment as determined under Treasury Regulation 1.409A-1 (b)(9)(iii)(A)( 1) and any IRS guidance issued with respect thereto; or (ii) the maximum amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17) of the Code for the year in which Executive’s employment is terminated.
15.Miscellaneous.
(a)The Executive acknowledges that the services to be rendered by him under the provisions of this Agreement are of a special, unique and extraordinary character and that it would be difficult or impossible to replace such services. Furthermore, the parties acknowledge that monetary damages alone would not be an adequate remedy for any breach by the Executive of Section 12 or Section 13 of this Agreement. Accordingly, the Executive agrees that any breach or threatened breach by him of Section 12 or Section 13 of this Agreement shall entitle the Company, in addition to all other legal remedies available to it, to apply to any court of competent jurisdiction to seek to enjoin such breach or threatened breach. The parties understand and intend that each restriction agreed to by the Executive hereinabove shall be construed as separable and divisible from every other restriction, that the unenforceability of any restriction shall not limit the enforceability, in whole or in part, of any other restriction, and that one or more or all of such restrictions may be enforced in whole or in part as the circumstances warrant.  In the event that any restriction in this Agreement is more restrictive than permitted by law in the jurisdiction in which the Company seeks enforcement thereof, such restriction shall be limited to the extent permitted by law. The remedy of injunctive relief herein set forth shall be in addition to, and not in lieu of, any other rights or remedies that the Company may have at law or in equity.
(b)Neither the Executive nor the Company may assign or delegate any of their rights or duties under this Agreement without the express written consent of the other; provided, however, that the Company shall have the right to delegate its obligation of payment of all sums due to the Executive hereunder, provided that such delegation shall not relieve the Company of any of its obligations hereunder.
(c)During the term of this Agreement, the Company (i) shall indemnity and hold harmless Executive and his heirs and representatives as, and to the extent, provided in the Company’s bylaws and (ii) shall cover Executive under the Company’s directors’ and officers’ liability insurance on the same basis as it covers other senior executive officers and directors of the Company.
(d)This Agreement constitutes and embodies the full and complete understanding and agreement of the parties with respect to the Executive’s employment by the Company, supersedes all prior understandings and agreements, whether oral or written, between the Executive and the Company, and shall not be amended, modified or changed except by an instrument in writing executed by the party to be charged (it being understood that, pursuant to Section 7, Share Awards shall govern with respect to the subject matter thereof). The invalidity or partial invalidity of one or more provisions of this Agreement shall not invalidate any other provision of this Agreement. No waiver by either party of any provision or condition to be performed shall be deemed a waiver of similar or dissimilar provisions or conditions at the same time or any prior or subsequent time.

12

(e)This Agreement shall inure to the benefit of, be binding upon and enforceable against, the parties hereto and their respective successors, heirs, beneficiaries and permitted assigns.
(f)The headings contained in this Agreement are for convenience of reference only and shall not affect in any way the meaning or interpretation of this Agreement.
(g)All notices, requests, demands and other communications required or permitted to be given hereunder shall be in writing and shall be deemed to have been duly given when personally delivered, sent by registered or certified mail, return receipt requested, postage prepaid, or by reputable national overnight delivery service (e.g., Federal Express) for overnight delivery to the party at the address set forth in the preamble to this Agreement, or to such other address as either party may hereafter give the other party notice of in accordance with the provisions hereof. Notices shall be deemed given on the sooner of the date actually received or the third business day after deposited in the mail or one business day after deposited with an overnight delivery service for overnight delivery.
(h)This Agreement shall be governed by and construed in accordance with the internal laws of the State of Florida without reference to principles of conflicts of laws and each of the parties hereto irrevocably consents to the jurisdiction and venue of the federal and state courts located in the County of Orange and State of Florida.
(i)This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one of the same instrument. The parties hereto have executed this Agreement as of the date set forth above.
(j)The Executive represents and warrants to the Company, that he has the full power and authority to enter into this Agreement and to perform his obligations hereunder and that the execution and delivery of this Agreement and the performance of his obligations hereunder will not conflict with any agreement to which Executive is a party.
(k)The Company represents and warrants to Executive that it has the full power and authority to enter into this Agreement and to perform its obligations hereunder and that the execution and delivery of this Agreement and the performance of its obligations hereunder will not conflict with any agreement to which the Company is a party.

[Signature page follows immediately]

13

IN WITNESS WHEREOF, the Executive and the Company have caused this Amended and Restated Executive Employment Agreement to be executed as of the date first above written.
	
							
	COMPANY:
	 
	EXECUTIVE:

	 
	 
	 

	IZEA, INC.
	 
	RYAN S. SCHRAM

	 
	 
	 

	By:
	/s/ Edward H. Murphy
	 
	By:
	/s/ Ryan S. Schram

	Title:
	CEO
	 
	 
	 

	Date:
	January 25, 2015
	 
	Date:
	January 25, 2015

	
				
	By:
	 
	/s/ Brian Brady

	 
	 
	Compensation Committee

	Date:
	 
	January 25, 2015

14

Schedule A
Cash Bonuses
Revenue Override Bonus
The Executive shall be entitled to a bonus equal to 0.4% of the Company’s Gross Revenue, increasing to 0.65% of Gross Revenue upon exceeding the Gross Revenue Budget, as determined prior to the start of each calendar year by the Board of Directors in collaboration with the Executive. Gross Revenue Budget may be adjusted by the Board of Directors in collaboration with the Executive from time to time based on material changes in the companies operating structure such as acquisition or financing. 
Payment of Revenue Override Bonus: Not later than the earlier of (a) 15 days following the filing of the Company’s Quarterly Report on Form 10-Q or Annual Report on Form 10-K for such quarter or (b) the 4th pay period after such quarter or 8th pay period after year end, the Executive will be paid the Revenue Override Bonus as calculated from the preceding quarter. 
“Gross Revenue” is determined by applying generally accepted accounting principles (GAAP).
Cash Bonus KPIs
The Executive will be entitled to an annual cash bonus of up to $100,000 per year based upon achieving specified key performance indicators (the “Cash Bonus KPIs”), as determined prior to the start of each calendar year by the Board of Directors in collaboration with the Executive. Cash Bonus KPIs may be adjusted by the Board of Directors in collaboration with the Executive from time to time based on material changes in the companies operating structure such as acquisition or financing. The bonus will be split 20% per quarter for quartile goals and 20% annually for annual goals.  Not later than the earlier of (a) 15 days following the filing of the Company's Quarterly Report on Form 10-Q or Annual Report on Form 10-K for such quarter or (b) the 4th pay period after such quarter or 8th pay period after year end, the Executive will be paid the bonus in accordance with the Company's regular payroll practices. 

15

Schedule B
Equity Awards
Annual Stock Options
The Executive shall be granted stock options annually beginning January 1, 2015 and each January 1 thereafter, which entitle him to purchase shares of common stock of the Company valued at $25,000 based on standard Black-Scholes modeling (but, in any event, the number of underlying shares of common stock shall not exceed 133,333 shares (as adjusted for stock splits and similar events)), at an exercise price per share equal to the market price of the common stock on the date of grant, which options shall vest in 48 equal installments, commencing on the grant date and on the last day of each succeeding month thereafter until all options are vested, and pursuant to a customary stock option agreement which will contain the terms pertaining to the stock options contained in this Schedule B, which the Executive and the Company shall enter into within 10 days after this Agreement is executed by both of the parties. In the event that the fair market value of the stock option grant is less than $25,000 as limited by the 300,000 share cap, the Executive shall be entitled to receive either 50% of the difference in fair market value in cash or 100% of the value in Restricted Stock Units at the then current Company common stock trading price and with the same vesting schedule as the above stock options, at the sole option of the Board.
Stock Bonus KPIs 
The Executive shall also be entitled to receive additional stock options as a bonus, which would entitle him to purchase shares of common stock of the Company valued at up to $25,000 per year based on standard Black-Scholes modeling (but, in any event, the number of underlying shares of common stock shall not exceed 300,000 shares (as adjusted for stock splits and similar events)), at an exercise price per share equal to the market price of the common stock on the date of grant, based upon the Company’s and the Executive’s achievement of specified key performance indicators (the “Stock Bonus KPIs”). The bonus will be split 20% per quarter for quartile goals and 20% annually for annual goals. Not later than the earlier of (a) 15 days following the filing of the Company’s Quarterly Report on Form 10-Q or Annual Report on Form 10-K for such quarter or (b) the 4th pay period after such quarter or 8th pay period after year end, the Executive will be issued the bonus stock options. The options shall vest in 48 equal installments, commencing on the last day of the month in which the grant occurred and on the last day of each succeeding month thereafter until all options are vested, and pursuant to a customary stock option agreement which will contain the terms pertaining to the stock options contained in this Schedule B.
Provisions Applicable to the Stock Options
In the event of termination of the employment (A) by the Executive pursuant to Section 11(e) or (B) by the Company pursuant to Section 11(c), all stock options not theretofore vested will lapse and be forfeited. In the event the Executive’s employment is terminated for any other reason (including for Good Reason or disability and death), all stock options not theretofore vested will thereupon become immediately vested on the date of termination, and, in the event of Executive’s death, all stock options provided for under this Agreement will transfer to the Executive’s estate. 

16

Upon a Change of Control, as provided in Section 11(f), 50% of all unvested stock options granted to the Executive will vest immediately and the remaining 50% of all stock options granted to the Executive will vest upon the earlier of eighteen (18) months after such Change of Control or the date of the Executive’s termination for any reason, other than pursuant to Section 11(c), by the acquiring company. Except as otherwise provided in the next paragraph, each stock option will expire ten years after it is granted.
In the event of termination of the employment of the Executive, all unexercised and exercisable stock options granted to him hereunder must be exercised by him, or his estate (or heir(s)), as the case may be: (A) within twelve (12) months after the date of termination, if the termination is due to disability, as provided in Section 11(b), (B) within twelve (12) months after the date of termination, in the event of death of the Executive, as provided in Section 11(a), or within three (3) months after the date of death if the termination was pursuant to disability, or (C) within six (6) months after the date of termination if the termination is for any other reason; provided, however, that in the event of the Executive’s employment is terminated pursuant to Section 11(c), all unexercised and exercisable stock options granted to him hereunder become null and void immediately upon termination. 

17Exhibit 4.2

 

SUBSCRIPTION ESCROW AGREEMENT

 

THIS SUBSCRIPTION ESCROW AGREEMENT,
dated as of [   ], 2015 (this “Agreement”), is entered into among Orchard Securities, LLC (the “Dealer
Manager”), Lightstone Real Estate Income Trust Inc. (the “Company”) and UMB Bank, N.A., a national
banking association, as escrow agent (the “Escrow Agent”).

 

WHEREAS, the Company intends to raise
cash funds from Investors (as defined below) pursuant to a public primary offering (the “Offering”) of not less
than 200,000 shares of common stock, par value $0.01 per share (“Common Shares”), for an aggregate offering
amount of $2,000,000 (the “Minimum Amount”), and not more than 30,000,000 Common Shares, pursuant to the registration
statement on Form S-11 of the Company (No. 333-200464) (as amended, the “Offering Document”).

 

WHEREAS, the Company desires to establish
an escrow account with the Escrow Agent for funds contributed by subscribers for Common Shares (“Investors”)
with the Escrow Agent, to be held for the benefit of the Investors and the Company until such time as (a) in the case of subscriptions
received from residents of New York (“New York Investors”), aggregate subscriptions from all Investors result
in a total minimum capital raised of $2,500,000 (the “New York Minimum Amount”), (b) in the case of subscriptions
received from residents of Tennessee (“Tennessee Investors”), aggregate subscriptions from all Investors result
in a total minimum capital raised of $20,000,000 (the “Tennessee Minimum Amount”), (c) in the case of subscriptions
received from residents of Pennsylvania (“Pennsylvania Investors”) aggregate subscriptions from all Investors
result in a total minimum capital raised of $15,000,000 (the “Pennsylvania Minimum Amount”) and (d) in the case
of all other Investors, the Minimum Amount (excluding proceeds from Common Shares sold to New York Investors, Tennessee Investors
and Pennsylvania Investors) has been deposited into escrow in accordance with the terms of this Agreement.

 

WHEREAS, the Escrow Agent is willing
to accept appointment as escrow agent only for the express duties set forth herein.

 

NOW, THEREFORE, in consideration
of the foregoing and of the mutual covenants and agreements contained herein, the parties hereto, intending to be legally bound,
hereby agree as follows:

 

1.          
Proceeds to be Escrowed. On or before the date the Offering Document is initially declared effective by the Securities and
Exchange Commission (the “SEC”), the Company shall establish an interest-bearing escrow account with the Escrow
Agent to be invested in accordance with Section 10 titled “ESCROW ACCOUNT FOR THE BENEFIT OF INVESTORS IN COMMON SHARES
OF LIGHSTONE REAL ESTATE INCOME TRUST INC.” (including such abbreviations as are required for the Escrow Agent’s systems)
(the “Escrow Account”). All funds received from Investors in payment for the Common Shares (“Investor
Funds”), along with all documents executed in connection with each subscription of Common Shares, will be delivered to
the Dealer Manager or any soliciting dealer retained by the Dealer Manager (a “Soliciting Dealer”), and the
Dealer Manager or such Soliciting Dealer, as applicable, will deliver all Investor Funds to the Escrow Agent within the time period
set forth in the final paragraph of this Section 1, and such Investor Funds shall, upon receipt by the Escrow Agent, be
retained in escrow by the Escrow Agent. Until the Termination Date (as defined in Section 7), the Company or its agents
shall cause all checks received for payment for the Common Shares to be payable to the Escrow Agent in accordance with Section
2 and delivered to the Escrow Agent for deposit in the Escrow Account.

 

    	 

    	 

    

 

Proceeds received from New York Investors
shall be accounted for separately in a subaccount entitled “ESCROW SUBACCOUNT FOR THE BENEFIT OF NEW YORK INVESTORS IN COMMON
SHARES OF LIGHSTONE REAL ESTATE INCOME TRUST INC.” (including such abbreviations as are required for the Escrow Agent’s
systems) (the “New York Escrow Subaccount”), until such New York Escrow Subaccount has closed pursuant to Section
4 hereof. The Company shall, and shall cause its agents to, cooperate with the Escrow Agent in separately accounting for subscription
proceeds from New York Investors in the New York Escrow Subaccount, and the Escrow Agent shall be entitled to rely upon information
provided by the Company or its agents in this regard.

 

Proceeds received from Tennessee Investors
shall be accounted for separately in a subaccount entitled “ESCROW SUBACCOUNT FOR THE BENEFIT OF TENNESSEE INVESTORS IN COMMON
SHARES OF LIGHSTONE REAL ESTATE INCOME TRUST INC.” (including such abbreviations as are required for the Escrow Agent’s
systems) (the “Tennessee Escrow Subaccount”), until such Tennessee Escrow Subaccount has closed pursuant to
Section 5 hereof. The Company shall, and shall cause its agents to, cooperate with the Escrow Agent in separately accounting
for subscription proceeds from Tennessee Investors in the Tennessee Escrow Subaccount, and the Escrow Agent shall be entitled to
rely upon information provided by the Company or its agents in this regard.

 

Proceeds received from Pennsylvania Investors
shall be accounted for separately in a subaccount entitled “ESCROW SUBACCOUNT FOR THE BENEFIT OF PENNSYLVANIA INVESTORS IN
COMMON SHARES OF LIGHSTONE REAL ESTATE INCOME TRUST INC.” (including such abbreviations as are required for the Escrow Agent’s
systems) (the “Pennsylvania Escrow Subaccount”), until such Pennsylvania Escrow Subaccount has closed pursuant
to Section 6 hereof. The Company shall, and shall cause its agents to, cooperate with the Escrow Agent in separately accounting
for subscription proceeds from Pennsylvania Investors in the Pennsylvania Escrow Subaccount, and the Escrow Agent shall be entitled
to rely upon information provided by the Company or its agents in this regard.

 

The escrow period shall commence upon the
effectiveness of this Agreement and shall continue until the Termination Date (as defined in Section 7).

 

The Escrow Agent shall have no duty to make
any disbursement, investment or other use of Investor Funds until and unless it has good and collected funds. If any checks deposited
in the Escrow Account are returned or prove uncollectible after the funds represented thereby have been released by the Escrow
Agent, then the Company shall promptly reimburse the Escrow Agent for any and all costs reasonably incurred for such, upon request,
and the Escrow Agent shall deliver the returned checks to the Company. The Escrow Agent shall be under no duty or responsibility
to enforce collection of any check delivered to it hereunder.

 

    	2

    	 

    

 

When the internal supervisory procedures
of the Dealer Manager or Soliciting Dealer, as applicable, are conducted at the site at which the subscription agreement and check
were initially received by the Dealer Manager or Soliciting Dealer, as applicable, from the subscriber, the Dealer Manager or Soliciting
Dealer, as applicable, shall transmit the check to the Escrow Agent by the end of the next business day following receipt of the
check and subscription agreement. When, pursuant to the internal supervisory procedures of the Dealer Manager or Soliciting Dealer,
as applicable, the final internal supervisory procedures are conducted at a different location (the “Final Review Office”),
the Dealer Manager or Soliciting Dealer, as applicable, shall transmit the check and subscription agreement to the Final Review
Office by the end of the next business day following receipt of the subscription agreement and check. The Final Review Office will,
by the end of the next business day following its receipt of the subscription agreement and check, forward the check to the Escrow
Agent.

 

2.           Investors.
Investors will be instructed by the Dealer Manager or any Soliciting Dealer to remit the purchase price in the form of checks
(“instruments of payment”) payable to the order of “UMB BANK, N.A., ESCROW AGENT FOR LIGHTSTONE REAL ESTATE
INCOME TRUST.” By 12:00 p.m. Eastern the next business day after receipt of instruments of payment, the Escrow Agent shall
be furnished with a list of the Investors who have paid for the Common Shares showing the name, address, tax identification number,
number of Common Shares subscribed for, the amount paid and whether such Investors are New York Investors, Tennessee Investors
or Pennsylvania Investors (the “List of Investors”). The information comprising the identity of Investors shall
be provided to the Escrow Agent in the format set forth in the “List of Investors” attached hereto as Exhibit C.
The Escrow Agent shall be entitled to conclusively rely upon the List of Investors in determining whether Investors are New York
Investors, Tennessee Investors or Pennsylvania Investors, and shall have no duty to independently determine or verify the same.

 

Any checks made payable to a party other
than the Escrow Agent shall be returned to the Dealer Manager or Soliciting Dealer that submitted the check. If any subscription
agreement for the purchase of Common Shares solicited by a Soliciting Dealer is rejected by the Dealer Manager or the Company,
then the subscription agreement and the related check for the purchase of Common Shares will be returned to the rejected subscriber
within ten (10) business days from the date of rejection. If an Investor sends a check to the Dealer Manager or any Soliciting
Dealer that does not conform to the subscription instructions, the Dealer Manager or Soliciting Dealer, as applicable, shall return
the check directly to such Investor not later than the end of the next business day after the date on which the Dealer Manager
or Soliciting Dealer, as applicable, received such check.

 

All Investor Funds deposited in the Escrow
Account shall not be subject to any liens or charges by the Company or the Escrow Agent, or judgments or creditors’ claims
against the Company, until and unless released to the Company as hereinafter provided. The Company understands and agrees that
the Company shall not be entitled to any Investor Funds on deposit in the Escrow Account and no such funds shall become the property
of the Company or any other entity except as released to the Company pursuant to Section 3, Section 4 for New York
Investors, Section 5 for Tennessee Investors or Section 6 for Pennsylvania Investors.

 

    	3

    	 

    

 

The Escrow Agent will not use the information
provided to it by the Company for any purpose other than to fulfill its obligations as Escrow Agent hereunder. The Escrow Agent
will treat all Investor information as confidential.

 

3.           Disbursement
of Funds. Once proceeds from the sale of Common Shares equal the Minimum Amount (excluding proceeds from Common Shares sold
to New York Investors, Tennessee Investors and Pennsylvania Investors), the Company shall notify the Escrow Agent of the same in
writing. At the end of the third business day following the Termination Date (as defined in Section 7), the Escrow Agent
shall notify the Company of the amount of the Investor Funds received. If the Minimum Amount (excluding proceeds from Common Shares
sold to New York Investors, Tennessee Investors and Pennsylvania Investors) has been obtained on or before the Termination Date,
the Escrow Agent shall promptly notify the Company and, upon receiving acknowledgement of such notice and written instructions
from (a) the Company’s Chief Executive Officer, President, Secretary or Chief Financial Officer, and (b) the Dealer Manager’s
President to disburse the Investor Funds, but subject to Sections 4, 5 or 6, the Escrow Agent shall disburse
to the Company, by check or wire transfer, the funds in the Escrow Account. The Escrow Agent agrees that funds in the Escrow Account
shall not be released to the Company until and unless the Escrow Agent receives written instructions to release the Investor Funds
from (a) the Company’s Chief Executive Officer, President, Secretary or Chief Financial Officer, and (b) the Dealer Manager’s
President.

 

If the Minimum Amount (excluding proceeds
from Common Shares sold to New York Investors, Tennessee Investors and Pennsylvania Investors) has not been sold on or prior to
the Termination Date, the Company shall notify the Escrow Agent in writing of such. If the Company notifies the Escrow Agent in
writing that the Minimum Amount (excluding proceeds from Common Shares sold to New York Investors, Tennessee Investors and Pennsylvania
Investors) has not been sold prior to the Termination Date, the Escrow Agent shall, promptly following the Termination Date, but
in no event more than 30 days after the Termination Date, refund to each Investor by check, funds deposited in the Escrow Account,
including interest or any other income earned thereon (except that in the case of Investors who have not provided an executed Form
W-9 or substitute Form W-9 (or the applicable substitute Form W-8 for foreign investors), the Escrow Agent shall withhold the applicable
percentage of the earnings attributable to those Investors in accordance with IRS regulations) or shall return the instruments
of payment delivered to Escrow Agent if such instruments have not been processed for collection prior to such time, directly to
each Investor at the address previously provided. Notwithstanding the foregoing, the Escrow Agent shall not be required to remit
any payments until funds represented by such payments have been collected by the Escrow Agent. Additionally, at the end of the
third business day following the Termination Date, the Escrow Agent shall notify the Company of the amount of the Investor Funds
received. Further, once the Offering has closed, the Company shall notify the Escrow Agent of the same in writing.

 

If the Escrow Agent receives written notice
from the Company that the Company intends to reject an Investor’s subscription, the Escrow Agent shall pay to the applicable
Investor, within a reasonable time not to exceed ten (10) business days after receiving notice of the rejection, by first class
United States mail at the address provided on such Investor’s subscription agreement, or at such other address as shall be
furnished to the Escrow Agent by the Investor in writing, all collected sums paid by the Investor for Common Shares and received
by the Escrow Agent (without interest thereon).

 

    	4

    	 

    

  

4.          Disbursement
of Proceeds for New York Investors. Notwithstanding the foregoing, proceeds from New York Investors will not count towards
meeting the Minimum Amount for purposes of Section 3. Proceeds received from New York Investors will not be released from
the New York Escrow Subaccount until the New York Minimum Amount is obtained. If the New York Minimum Amount is obtained at any
time prior to the Termination Date, the Escrow Agent shall promptly notify the Company and, upon receiving joint written instructions
to release the funds from (a) the Company’s Chief Executive Officer, President, Secretary or Chief Financial Officer, and
(b) the Dealer Manager’s President, the Escrow Agent shall disburse to the Company, by check or wire transfer, the funds
in the New York Escrow Subaccount representing the gross purchase price of the Common Shares.

 

If the New York Minimum Amount has not been
obtained prior to the Termination Date, the Escrow Agent shall, within a reasonable time following the Termination Date, but in
no event more than thirty (30) days after the Termination Date, refund to each New York Investor by check funds deposited in the
New York Escrow Subaccount, or shall return the instruments of payment delivered to the Escrow Agent if such instruments have not
been processed for collection prior to such time, directly to each New York Investor at the address provided on the List of Investors.
Included in the remittance shall be a proportionate share of the income earned in the account allocable to each New York Investor’s
investment in accordance with the terms and conditions specified herein, except that in the case of New York Investors who have
not provided an executed Form W-9 or substitute Form W-9, the Escrow Agent shall withhold the applicable percentage of the earnings
attributable to those Investors in accordance with IRS regulations. Notwithstanding the foregoing, the Escrow Agent shall not be
required to remit any payments until funds represented by such payments have been collected by Escrow Agent.

 

5.          Disbursement
of Proceeds for Tennessee Investors. Notwithstanding the foregoing, proceeds from Tennessee Investors will not count towards
meeting the Minimum Amount for purposes of Section 3. Proceeds received from Tennessee Investors will not be released from
the Tennessee Escrow Subaccount until the Tennessee Minimum Amount is obtained. If the Tennessee Minimum Amount is obtained at
any time prior to the Termination Date, the Escrow Agent shall promptly notify the Company and, upon receiving joint written instructions
to release the funds from (a) the Company’s Chief Executive Officer, President, Secretary or Chief Financial Officer, and
(b) the Dealer Manager’s President, the Escrow Agent shall disburse to the Company, by check or wire transfer, the funds
in the Tennessee Escrow Subaccount representing the gross purchase price of the Common Shares.

 

If the Tennessee Minimum Amount has not
been obtained prior to the Termination Date, the Escrow Agent shall, within a reasonable time following the Termination Date, but
in no event more than thirty (30) days after the Termination Date, refund to each Tennessee Investor by check funds deposited in
the Tennessee Escrow Subaccount, or shall return the instruments of payment delivered to the Escrow Agent if such instruments have
not been processed for collection prior to such time, directly to each Tennessee Investor at the address provided on the List of
Investors. Included in the remittance shall be a proportionate share of the income earned in the account allocable to each Tennessee
Investor’s investment in accordance with the terms and conditions specified herein, except that in the case of Tennessee
Investors who have not provided an executed Form W-9 or substitute Form W-9, the Escrow Agent shall withhold the applicable percentage
of the earnings attributable to those Investors in accordance with IRS regulations. Notwithstanding the foregoing, the Escrow Agent
shall not be required to remit any payments until funds represented by such payments have been collected by Escrow Agent.

 

    	5

    	 

    

  

6.          Disbursement
of Proceeds for Pennsylvania Investors.  Notwithstanding the foregoing, proceeds from Pennsylvania Investors will not count
towards meeting the Minimum Amount for purposes of Section 3. Proceeds received from Pennsylvania Investors will not be
released from the Pennsylvania Escrow Subaccount until the Pennsylvania Minimum Amount is obtained. If the Pennsylvania Minimum
Amount is obtained at any time prior to the Termination Date, the Escrow Agent shall promptly notify the Company and, upon receiving
joint written instructions to release the funds from (a) the Company’s Chief Executive Officer, President, Secretary or Chief
Financial Officer, and (b) the Dealer Manager’s President, the Escrow Agent shall disburse to the Company, by check or wire
transfer, the funds in the Pennsylvania Escrow Subaccount representing the gross purchase price of the Common Shares.

 

If the Pennsylvania Minimum Amount has not
been obtained prior to the Termination Date, the Escrow Agent shall, within a reasonable time following the Termination Date, but
in no event more than thirty (30) days after the Termination Date, refund to each Pennsylvania Investor by check funds deposited
in the Pennsylvania Escrow Subaccount, or shall return the instruments of payment delivered to the Escrow Agent if such instruments
have not been processed for collection prior to such time, directly to each Pennsylvania Investor at the address provided on the
List of Investors. Included in the remittance shall be a proportionate share of the income earned in the account allocable to each
Pennsylvania Investor’s investment in accordance with the terms and conditions specified herein, except that in the case
of Pennsylvania Investors who have not provided an executed Form W-9 or substitute Form W-9, the Escrow Agent shall withhold the
applicable percentage of the earnings attributable to those Investors in accordance with IRS regulations. Notwithstanding the foregoing,
the Escrow Agent shall not be required to remit any payments until funds represented by such payments have been collected by Escrow
Agent.

 

If the Escrow Agent is not in receipt of
evidence of subscriptions accepted on or before the close of business on such date that is 120 days after the date the Offering
Document is initially declared effective by the SEC (the “Initial Escrow Period”), and instruments of payment
dated not later than that date, for the purchase of Common Shares providing for total purchase proceeds that equal or exceed the
Pennsylvania Minimum Amount, the Escrow Agent shall promptly notify the Company. Thereafter, the Company or its agents shall send
to each Pennsylvania Investor by certified mail within ten (10) calendar days after the end of the Initial Escrow Period a
notification substantially in the form of Exhibit D hereto. If, pursuant to such notification, a Pennsylvania Investor
requests the return of his or her Investor Funds within ten (10) calendar days after receipt of the notification (the “Request
Period”), the Escrow Agent shall promptly refund directly to each Pennsylvania Investor the collected funds deposited
in the Pennsylvania Escrow Subaccount on behalf of such Pennsylvania Investor or shall return the instruments of payment delivered,
but not yet processed for collection prior to such time, to the address provided on the List of Investors, upon which the Escrow
Agent shall be entitled to rely, together with interest income earned as determined in accordance with the terms and conditions
specified herein (which interest shall be paid within five business days after the first business day of the succeeding month).
Notwithstanding the above, if the Escrow Agent has not received an executed Form W-9 or substitute Form W-9 for such Pennsylvania
Investor, the Escrow Agent shall thereupon remit an amount to such Pennsylvania Investor in accordance with the provisions hereof,
withholding the applicable percentage for backup withholding in accordance with IRS regulations, as then in effect, from any interest
income earned on Investor Funds (determined in accordance with the terms and conditions specified herein) attributable to such
Pennsylvania Investor. However, the Escrow Agent shall not be required to remit such payments until the Escrow Agent has collected
funds represented by such payments.

 

    	6

    	 

    

 

The Investor Funds
of Pennsylvania Investors who do not request the return of their Investor Funds within the Request Period shall remain in the Pennsylvania
Escrow Subaccount for successive 120-day escrow periods (a “Successive Escrow Period”), each commencing automatically
upon the termination of the prior Successive Escrow Period, and the Company and Escrow Agent shall follow the notification and
payment procedure set forth above with respect to the Initial Escrow Period for each Successive Escrow Period until the occurrence
of the earliest of (i) the Termination Date, (ii) the receipt and acceptance by the Company of subscriptions for the
purchase of Common Shares with total purchase proceeds that equal or exceed the Pennsylvania Minimum Amount and the disbursement
of the Pennsylvania Escrow Subaccount on the terms specified herein and (iii) all funds held in the Pennsylvania Escrow Subaccount
having been returned to the Pennsylvania Investors in accordance with the provisions hereof.

 

7.          Term
of Escrow. The “Termination Date” shall be the earliest of: (a) the close of business on [   ], 2015; (b)
the date all Investor Funds held in the Escrow Account are distributed to the Company or to Investors pursuant to Section 3
and for New York Investors, Section 4, for Tennessee Investors, Section 5 and for Pennsylvania Investors, Section
6, and the Company has informed the Escrow Agent in writing to close the Escrow Account; (c) the date the Escrow Agent receives
written notice from the Company that it is abandoning the sale of the Common Shares pursuant to the Offering; and (d) the date
the Escrow Agent receives notice from the SEC or any other federal or state regulatory authority that a stop or similar order has
been issued with respect to the Offering Document and that such stop or similar order has remained in effect for at least twenty
(20) days. After the Termination Date, the Company and its agents shall not deposit, and the Escrow Agent shall not accept, any
additional amounts representing payments by prospective Investors.

 

    	7

    	 

    

 

8.          Duty
and Liability of the Escrow Agent. The sole duty of the Escrow Agent shall be to receive Investor Funds and subscription agreements
and hold them subject to release, in accordance herewith, and the Escrow Agent shall be under no duty to determine whether the
Company, the Dealer Manager or any Soliciting Dealer is complying with requirements of this Agreement, the Offering or applicable
securities or other laws in tendering the Investor Funds to the Escrow Agent. No other agreement entered into between the parties
(other than the Escrow Agent), or any of them, shall be considered as adopted or binding, in whole or in part, upon the Escrow
Agent, notwithstanding that any such other agreement may be referred to herein or deposited with the Escrow Agent or that the Escrow
Agent may have knowledge thereof, including specifically but without limitation the Offering Document or any other document related
to the Offering (including the subscription agreement and exhibits thereto), and the Escrow Agent’s rights and responsibilities
shall be governed solely by this Agreement. The Escrow Agent shall not be responsible for or be required to enforce any of the
terms or conditions of the Offering Document or any other document related to the Offering (including the subscription agreement
and exhibits thereto) or other agreement between the Company and any other party. The Escrow Agent may conclusively rely upon and
shall be protected in acting upon any statement, certificate, notice, request, consent, order or other document believed by it
to be genuine and to have been signed or presented by the proper party or parties. The Escrow Agent shall have no duty or liability
to verify any such statement, certificate, notice, request, consent, order or other document, and its sole responsibility shall
be to act only as expressly set forth in this Agreement. Concurrently with the execution of this Agreement, the Company and the
Dealer Manager shall each deliver to the Escrow Agent an authorized signers form in the form of Exhibit A or Exhibit
A-1 hereto, as applicable. The Escrow Agent shall be under no obligation to institute or defend any action, suit or proceeding
in connection with this Agreement unless first indemnified to its satisfaction. The Escrow Agent may consult counsel of its own
choice with respect to any question arising under this Agreement and the Escrow Agent shall not be liable for any action taken
or omitted in good faith upon advice of such counsel. The Escrow Agent shall not be liable for any action taken or omitted by it
in good faith except to the extent that a court of competent jurisdiction determines that the Escrow Agent’s gross negligence
or willful misconduct was the primary cause of loss. The Escrow Agent is acting solely as escrow agent hereunder and owes no duties,
covenants or obligations, fiduciary or otherwise, to any other person by reason of this Agreement, except as otherwise stated herein,
and no implied duties, covenants or obligations, fiduciary or otherwise, shall be read into this Agreement against the Escrow Agent.
In the event of any disagreement between any of the parties to this Agreement (other than the Escrow Agent), or between any of
them and any other person, including any Investor, resulting in adverse claims or demands being made in connection with the matters
covered by this Agreement, or if the Escrow Agent is in doubt as to what action it should take hereunder, the Escrow Agent may,
at its option, refuse to comply with any claims or demands on it, or refuse to take any other action hereunder, so long as such
disagreement continues or such doubt exists, and in any such event, the Escrow Agent shall not be or become liable in any way or
to any person for its failure or refusal to act, and the Escrow Agent shall be entitled to continue so to refrain from acting until
(a) the rights of all interested parties shall have been fully and finally adjudicated by a court of competent jurisdiction, or
(b) all differences shall have been adjudged and all doubt resolved by agreement among all the interested persons, and the Escrow
Agent shall have been notified thereof in writing signed by all such persons. Notwithstanding the foregoing, the Escrow Agent may
in its discretion obey the order, judgment, decree or levy of any court, whether with or without jurisdiction, and the Escrow Agent
is hereby authorized in its sole discretion to comply with and obey any such orders, judgments, decrees or levies. If any controversy
should arise with respect to this Agreement, the Escrow Agent shall have the right, at its option, to institute an interpleader
action in any court of competent jurisdiction to determine the rights of the parties. IN NO EVENT SHALL THE ESCROW AGENT BE LIABLE,
DIRECTLY OR INDIRECTLY, FOR ANY SPECIAL, INDIRECT OR CONSEQUENTIAL LOSSES OR DAMAGES OF ANY KIND WHATSOEVER (INCLUDING WITHOUT
LIMITATION LOST PROFITS), EVEN IF THE ESCROW AGENT HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSSES OR DAMAGES AND REGARDLESS
OF THE FORM OF ACTION. The parties hereto agree that the Escrow Agent has no role in the preparation of the Offering Documents
(including the subscription agreement and exhibits thereto) and makes no representations or warranties with respect to the information
contained therein or omitted therefrom. The Escrow Agent shall have no obligation, duty or liability with respect to compliance
with any federal or state securities, disclosure or tax laws concerning the Offering Documents or any other document related to
the Offering (including the subscription agreement and exhibits thereto) or the issuance, offering or sale of the Common Shares.
The Escrow Agent shall have no duty or obligation to monitor the application and use of the Investor Funds once transferred to
the Company, that being the sole obligation and responsibility of the Company.

 

    	8

    	 

    

 

9.          Escrow
Agent’s Fees. The Escrow Agent shall be entitled to compensation for its services as stated in the fee schedule attached
hereto as Exhibit B, which compensation shall be paid by the Company. The fees agreed upon for the services rendered hereunder
are intended as full compensation for the Escrow Agent’s services as contemplated by this Agreement; provided, however,
that if (a) the conditions for the disbursement of funds under this Agreement are not fulfilled, (b) the Escrow Agent renders any
material service not contemplated in this Agreement, (c) there is any assignment of interest in the subject matter of this Agreement,
(d) there is any material modification hereof, (e) any material controversy arises hereunder, or (f) the Escrow Agent is made a
party to any litigation pertaining to this Agreement or the subject matter hereof, then the Escrow Agent shall be reasonably compensated
for such extraordinary services and reimbursed for all costs and expenses, including reasonable attorneys’ fees, occasioned
by any delay, controversy, litigation or event, and the same shall be recoverable from the Company. The Company’s obligations
under this Section 9 shall survive the resignation or removal of the Escrow Agent and the assignment or termination of this
Agreement.

 

10.         Investment
of Investor Funds. Investor Funds shall be deposited in the Escrow Account in accordance with Section 1. Subject to
compliance with Rule 15c2-4 of the Exchange Act, the Escrow Agent may invest in bank accounts, including saving accounts and bank
money market accounts that enable the Escrow Agent to promptly and directly transmit Investor Funds to the person entitled thereto.
The Escrow Agent may also invest in short-term certificates of deposit issued by a bank or short-term securities issued or guaranteed
by the United States government. Interest and any other income resulting from the investment of the funds in the Escrow Account
shall be retained by the Escrow Agent and distributed according to this Agreement. The Escrow Agent shall provide to the Company
monthly statements (or more frequently as reasonably requested by the Company) on the account balance in the Escrow Account and
the activity in the Escrow Account since the last report.

 

11.          Notices.
All notices, requests, demands, and other communications under this Agreement (each, a “Notice”) shall be
in writing and shall be deemed to have been duly given (a) on the date of service if served personally on the party to whom notice
is to be given, (b) on the day after delivery to Federal Express or similar overnight courier or the Express Mail service maintained
by the United States Postal Service, or (c) on the fifth day after mailing, if mailed to the party to whom Notice is to be given,
by first class mail, registered or certified, postage prepaid, and properly addressed, return receipt requested, to the party as
follows:

 

If to the Company:

 

Lightstone Real Estate Income Trust Inc.

1985 Cedar Bridge Ave., Suite 1

Lakewood, New Jersey 08701

Attention: David Lichtenstein, Chief Executive Officer and Chairman
of the Board of Directors

 

with copies to:

 

Proskauer Rose LLP

Eleven Times Square

New York, New York 10036

 

    	9

    	 

    

 

Attention: Peter M. Fass, Esq.

 

Proskauer Rose LLP

Three First National Plaza

70 West Madison, Suite 3800

Chicago, IL 60602

Attention: Michael J. Choate, Esq.

 

If to the Dealer Manager:

 

Orchard Securities, LLC

170 Interstate Plaza

Suite 320

Lehi, Utah 84043

Attention: Cameron Hellewell, General Counsel

 

with a copy to:

 

Martin A. Hewitt, Esq.

11 Quaker Drive

East Brunswick, NJ 08816-3228

Attention: Martin A. Hewitt, Esq., Attorney at Law

 

If to the Escrow Agent:

 

UMB Bank, N.A.

Corporate Trust & Escrow Services

1010 Grant Blvd., 4th Floor

Kansas City, MO 64106

Attention: Lara L. Stevens

 

Any party may change its address for purposes of this Section
by giving the other parties Notice of the new address in the manner set forth above.

 

12.          Indemnification
of Escrow Agent. The Company and the Dealer Manager hereby agree to, jointly and severally, indemnify, defend and hold harmless
the Escrow Agent from and against any and all losses, liabilities, costs, damages and expenses, including, without limitation,
reasonable attorneys’ fees and expenses, which the Escrow Agent may suffer or incur by reason of any action, claim or proceeding
brought against the Escrow Agent arising out of or relating in any way to this Agreement or any transaction to which this Agreement
relates unless such loss, liability, cost, damage or expense is finally determined by a court of competent jurisdiction to have
been primarily caused by the gross negligence or willful misconduct of the Escrow Agent. The terms of this Section 12 shall
survive the termination of this Agreement and the resignation or removal of the Escrow Agent.

 

    	10

    	 

    

 

13.          Successors
and Assigns. Except as otherwise provided in this Agreement, no party hereto shall assign this Agreement or any rights or obligations
hereunder without the prior written consent of the other parties hereto and any such attempted assignment without such prior written
consent shall be void and of no force and effect. This Agreement shall inure to the benefit of and shall be binding upon the successors
and permitted assigns of the parties hereto. Any corporation or association into which the Escrow Agent may be converted or merged,
or with which it may be consolidated, or to which it may sell or transfer all or substantially all of its corporate trust business
and assets as a whole or substantially as a whole, or any corporation or association resulting from any such conversion, merger,
consolidation, sale or transfer to which the Escrow Agent is a party, shall be and become the successor Escrow Agent under this
Agreement and shall have and succeed to the rights, powers, duties, immunities and privileges of its predecessor, without the execution
or filing of any instrument or paper or the performance of any further act.

 

14.          Governing
Law; Jurisdiction. This Agreement shall be construed, performed, and enforced in accordance with, and governed by, the internal
laws of the State of New York, without giving effect to the principles of conflicts of laws thereof.

 

15.          Severability.
If any provision of this Agreement is declared by any court or other judicial or administrative body to be null, void, or unenforceable,
said provision shall survive to the extent it is not so declared, and all the other provisions of this Agreement shall remain in
full force and effect.

 

16.          Amendments;
Waivers. This Agreement may be amended or modified, and any of the terms, covenants, representations, warranties or conditions
hereof may be waived, only by a written instrument executed by the parties hereto, or in the case of a waiver, by the party waiving
compliance. Any waiver by any party of any condition, or of the breach of any provision, term, covenant, representation or warranty
contained in this Agreement, in any one or more instances, shall not be deemed to be nor construed as a further or continuing waiver
of any other condition, or of the breach of any other provision, term, covenant, representation or warranty contained in this Agreement.
The Company and the Dealer Manager agree that any requested waiver, modification or amendment of this Agreement shall be consistent
with the terms of the Offering.

 

17.          Entire
Agreement. This Agreement contains the entire agreement and understanding among the parties hereto with respect to the escrow
contemplated hereby and supersedes and replaces all prior and contemporaneous agreements and understandings, oral or written, with
regard to such escrow.

 

18.          Section
Headings. The section headings in this Agreement are for reference purposes only and shall not affect the meaning or interpretation
of this Agreement.

 

19.          Counterparts.
This Agreement may be executed (including by facsimile transmission) with counterpart signature pages or in counterparts, each
of which shall be deemed an original, but all of which shall constitute the same instrument. Copies, telecopies, facsimiles, electronic
files and other reproductions of original executed documents shall be deemed to be authentic and valid counterparts of such original
documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law.

 

    	11

    	 

    

 

20.          Resignation.
The Escrow Agent may resign upon 30 days’ advance written notice to the parties hereto. If a successor escrow agent is
not appointed by the Company within the 30-day period following such notice, the Escrow Agent may petition any court of competent
jurisdiction to name a successor escrow agent, or may interplead the Investor Funds with such court, whereupon the Escrow Agent’s
duties hereunder shall terminate.

 

21.         References
to Escrow Agent. Other than the Offering Document, any of the other documents related to the Offering (including any prospectus,
prospectus supplement and the subscription agreement and exhibits thereto) and any amendments thereof or supplements thereto, no
printed or other matter in any language (including, without limitation, notices, reports and promotional material) which mentions
the Escrow Agent’s name or the rights, powers or duties of the Escrow Agent shall be issued by the Company or the Dealer
Manager, or on the Company’s or the Dealer Manager’s behalf, unless the Escrow Agent shall have first given its specific
written consent thereto. Notwithstanding the foregoing, any amendment or supplement to the Offering Document or any other document
related to the Offering (including any prospectus, prospectus supplement and the subscription agreement and exhibits thereto) that
revises, alters, modifies, changes or adds to the description of the Escrow Agent or its rights, powers or duties hereunder shall
not be issued by the Company or the Dealer Manager, or on the Company’s or the Dealer Manager’s behalf, unless the
Escrow Agent shall have first given its specific written consent thereto.

 

[Signature page follows.]

 

    	12

    	 

    

 

IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed as of the date and year first set forth above.

 

LIGHTSTONE REAL ESTATE INCOME TRUST INC.

 

	By:	 	 
	 	Name:  David Lichtenstein	 
	 	Title:    Chief Executive Officer	 
	 	 	 
	ORCHARD SECURITIES, LLC	 
	 	 	 
	By:	 	 
	 	Name:  Kevin Bradburn	 
	 	Title:    President	 
	 	 	 
	UMB BANK, N.A., as Escrow Agent	 
	 	 	 
	By:	 	 
	 	Name:  Lara L. Stevens	 
	 	Title:    Vice President	 

  

    	13

    	 

    

 

Exhibit A

 

Certificate
as to Authorized Signatures

 

	Account Name:	Escrow Account for the Benefit of Investors in Common Shares of Lightstone Real Estate Income Trust Inc.

 

	Account Number:	[_____]

 

The specimen signatures shown below are
the specimen signatures of the individuals who have been designated as Authorized Representatives of Lightstone Real Estate
Income Trust Inc. and are authorized to initiate and approve transactions of all types for the above-mentioned account on behalf
of Lightstone Real Estate Income Trust Inc.

 

	Name/Title	 	Specimen Signature
	 	 	 
	David Lichtenstein	 	 
	Chief Executive Officer	 	Signature
	 	 	 
	Mitchell Hochberg	 	 
	President and Chief Operating Officer	 	Signature
	 	 	 
	Joseph Teichman	 	 
	General Counsel and Secretary	 	Signature
	 	 	 
	Donna Brandin	 	 
	Chief Financial Officer and Treasurer	 	Signature

 

    	14

    	 

    

 

Exhibit A-1

 

Certificate
as to Authorized Signature

 

	Account Name:	Escrow Account for the Benefit of Investors in Common Shares of Lightstone Real Estate Income Trust Inc.

 

	Account Number:	[_____]

 

The specimen signature shown below is the
specimen signature of the individual who has been designated as Authorized Representative of Orchard Securities, LLC and
is authorized to initiate and approve transactions of all types for the above-mentioned account on behalf of Orchard Securities,
LLC. 

 

	Name/Title	 	Specimen Signature
	 	 	 
	Kevin Bradburn	 	 
	President	 	Signature

 

    	15

    	 

    

 

Exhibit B

 

ESCROW FEES

 

	Acceptance Fee 	 
	Review document and establish account	$3,000
	 	 
	Annual Fee 	 
	Annual Escrow Agent	$2,500
	 	 
	Transactional Fees	 
	Outgoing Wire Transfer	$35 each
	Overnight Delivery/Mailings	$16.50 each
	IRS Tax Reporting	$10 per 1099
	Daily BAI File to DST	$2.50 per business day
	Daily Wire Ripping File to DST	$10 per business day
	Web Exchange Access	$60 per month

 

Acceptance fee will be payable at the initiation
of the escrow. Annual fee and transactional fees, if any, will be billed quarterly in arrears.

 

Fees specified are for the regular, routine
services contemplated by this Agreement, and fees for any additional or extraordinary services, including but not limited to those
involving a dispute or arbitration, or administration while a dispute, controversy or adverse claim is in existence, will be charged
based upon time required at the then standard hourly rate.

 

    	16

    	 

    

 

Exhibit C

 

List of Investors

 

Pursuant to the Subscription Escrow Agreement,
dated [ ], 2015, among Lightstone Real Estate Income Trust Inc., (the “Company”), Orchard Securities, LLC and
UMB Bank, N.A. (the “Escrow Agent”), the Company hereby certifies that the following investors have paid money
for the purchase of shares of the Company’s common stock, par value $0.01 per share, and that the money has been deposited
with the Escrow Agent:

 

		1.	Name of Investor

Address

Tax Identification Number

Number of Common Shares subscribed for

Amount of money paid and deposited with Escrow Agent

Is Investor a resident of New York (Yes or No)?

Is Investor a resident of Tennessee (Yes or No)?

Is Investor a resident of Pennsylvania (Yes or No)?

 

		2.	Name of Investor

Address

Tax Identification Number

Number of Common Shares subscribed for

Amount of money paid and deposited with Escrow Agent

Is Investor a resident of New York (Yes or No)?

Is Investor a resident of Tennessee (Yes or No)?

Is Investor a resident of Pennsylvania (Yes or No)?

 

Company: _________________________________

By: ________________________

Its: ________________________

Date: ______________________

 

    	17

    	 

    

 

Exhibit D

 

[Form of Notice to Pennsylvania Investors]

 

You have tendered a subscription to purchase shares of common
stock, par value $0.01 per share (“Common Shares”), of Lightstone Real Estate Income Trust Inc. (the “Company”).
Your subscription is currently being held in escrow. The guidelines of the Pennsylvania Securities Commission do not permit the
Company to accept subscriptions from Pennsylvania residents until an aggregate of $15,000,000 of gross offering proceeds have been
received by the Company. The Pennsylvania guidelines provide that until this minimum amount of gross offering proceeds is received
by the Company, every 120 days during the offering period Pennsylvania investors may request that their subscription be returned.
If you wish to continue your subscription in escrow until the Pennsylvania minimum subscription amount is received, nothing further
is required.

 

If you wish to terminate your subscription for Common Shares
and have your subscription returned, please so indicate below, sign, date, and return to the escrow agent, UMB Bank, N.A.

 

 

I hereby terminate my prior subscription to purchase Common
Shares and request the return of my subscription funds. I certify to Lightstone Real Estate Income Trust Inc. that I am a resident
of Pennsylvania. 

	 	 	 	 	 	 
	 	 	 	Signature:	 
	 	 	 	 	 	 
	 	 	 	Name:	 
	 	 	 	 	        (please print)	 
	 	 	 	 	 	 
	 	 	 	Date:	 

 

Please send the subscription refund to:

                     
                           
                           
           

                              
                       
                        

                              
                       
                        

 

    	18

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