Document:

Unassociated Document

     

    EXHIBIT
      10.2

     

    FORM
      OF ADVISORY AGREEMENT 

    AMONG

    LIGHTSTONE
      VALUE PLUS REAL ESTATE INVESTMENT TRUST II, INC.,

    LIGHTSTONE
      VALUE PLUS REIT II LP

    and

    LIGHTSTONE
      VALUE PLUS REIT II LLC

     

    This
      Advisory Agreement (this “Agreement”)
      dated
      as of
                   ,
      2008 is among Lightstone Value Plus Real Estate Investment Trust II, Inc.,
      a
      Maryland corporation (the “Company”),
      Lightstone Value Plus REIT II LP, a Delaware limited partnership (the
“OP”),
      and
      Lightstone Value Plus REIT II LLC, a Delaware limited liability company (the
      “Advisor”).
      The
      Company and the OP are sometimes referred to herein collectively as the
“Advisees” and each individually as an “Advisee.”

     

    W
      I T N E S S E T H:

     

    WHEREAS,
      the Company is a Maryland corporation created in accordance with applicable
      provisions of the Maryland General Corporation Law, as amended from time to
      time
      (the “Maryland
      GCL”);
      and

     

    WHEREAS,
      the purposes of the Company are, as determined from time to time by the board
      of
      directors of the Company (the “Board
      of Directors”),
      to
      engage in any lawful business or activity for which a corporation may be created
      under the Maryland GCL; and

     

    WHEREAS,
      the Company is the general partner of the OP; and

     

    WHEREAS,
      the Company desires, on its own behalf and as general partner of the OP, to
      avail itself of the experience, sources of information, advice and assistance
      of
      the Advisor and to have the Advisor undertake the duties and responsibilities
      hereinafter set forth, on behalf of and subject to the supervision of the Board
      of Directors, all as provided herein; and

     

    WHEREAS,
      the Advisor is willing to render such services, subject to the supervision
      of
      the Board of Directors, on the terms and conditions hereinafter set
      forth;

     

    NOW,
      THEREFORE, in consideration of the mutual covenants herein contained, the
      parties hereto agree as follows:

     

    1.
      Definitions.
      Capitalized terms used but not defined herein shall have the meaning ascribed
      to
      them in the Company’s Charter (as herein defined), and the following terms, as
      used herein, shall have the meanings set forth below:

     

    “Acquisition
      Expenses”
shall
      mean expenses related to the Advisee’s selection of, and investment in, real
      properties and mortgage investments and other investments, whether or not
      acquired or made, including but not limited to advertising costs, brokerage
      fees, environmental, engineering and other due diligence expenses, legal fees
      and expenses, travel and communications expenses, cost of appraisals, accounting
      fees and expenses, title insurance and miscellaneous other
      expenses.

     

    “Acquisition
      Fee”
shall
      have the meaning set forth in Section 11(a)(i).

     

    “Affiliate”
means
      a
      Person who is (i) in the case of an individual, any relative of such Person,
      (ii) any officer, director, trustee, partner, manager, employee or holder of
      ten
      percent (10%) or more of any class of the voting securities of or equity
      interest in such Person; (iii) any corporation, partnership, limited liability
      company, trust or other entity controlling, controlled by or under common
      control with such Person; or (iv) any officer, director, trustee, partner,
      manager, employee or holder of ten percent (10%) or more of the outstanding
      voting securities of any corporation, partnership, limited liability company,
      trust or other entity controlling, controlled by or under common control with
      such Person. For purposes of this definition,
      the term
“controls,” “is controlled by,” or “is under common control with” shall mean the
      possession, direct or indirect, of the power to direct or cause the direction
      of
      the management and policies of an entity, whether through the ownership of
      voting rights, by contract or otherwise.

     

    “Asset
      Management Fee”
shall
      have the meaning set forth in Section 11(a)(ii).

    

    “Associate
      General Partner”
shall
      have the meaning set forth in the Partnership Agreement.

      

    “Average
      Invested Assets”
shall
      mean the average, at the end of each calendar month during the calendar quarter
      in respect of which an Asset Management Fee is being calculated, of the
      aggregate book value of the Advisees’ assets invested in equity interests in and
      loans secured by real estate, before reserves for depreciation or bad debt
      or
      other similar non-cash reserves. For an equity interest in real estate owned
      in
      joint venture, the calculation of average invested assets shall take into
      consideration the underlying joint venture's aggregate book value for the equity
      interest.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    “Board
      of Directors”
shall
      have the meaning set forth in the recitals hereto.

     

    “Charter”
shall
      mean the Articles of Incorporation of the Company dated as of
                   ,
      2008, as amended from time to time.

     

    “Cumulative
      Non-Compound Return”
shall
      mean, for any period for which a calculation thereof is being paid, the
      percentage resulting from dividing (i) the total distributions paid on each
      distribution payment date during such period by (ii) the product of (x) the
      daily average adjusted investor capital for such period and (b) the number
      of
      years (including fractional years) elapsed during such period (based on a year
      of 365 days).

     

    “Good
      Reason”
shall
      mean, with respect to the termination of this Agreement, (x) any failure to
      obtain a satisfactory agreement from any successor to an Advisee to assume
      and
      agree to perform such Advisee’s obligations under this Agreement; or (y) any
      material breach of this Agreement of any nature whatsoever by an
      Advisee.

     

    “Independent
      Director”
shall
      have the meaning set forth in the By-laws of the Company, as amended from time
      to time.

     

    “Initial
      Term”
shall
      have the meaning set forth in Section 16(a).

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    “Partnership
      Agreement”
shall
      mean the Agreement of Limited Partnership of the OP dated as of
                   ,
      2008, as amended and restated from time to time.

     

    “Person”
shall
      mean an individual, corporation, partnership, joint venture, association,
      company (whether of limited liability or otherwise), trust, bank or other
      entity, or government or any agency or political subdivision of a
      government.

     

    “Preferred
      Return”
shall
      mean the receipt by the stockholders of the Company of (i) a Cumulative
      Non-Compound Return of 7% per year on such stockholders’ net investment, and
      (ii) the amount of such net investment.

     

    “Prospectus”
shall
      mean the final prospectus of the Company in connection with the initial
      registration of the Shares filed with the SEC on Form S-11, as amended and
      supplemented from time to time.

     

    “SEC”
shall
      mean the United States Securities and Exchange Commission.

     

    “Share”
shall
      mean a share of the Common Stock, par value $0.01, of the Company.

     

    “Special
      Liquidation Distribution”
shall
      mean the liquidation distributions received by the Associate General Partner
      pursuant to Section 13.2 of the Partnership Agreement.

     

    “Total
      Operating Expenses”
of
      a
      Person means the aggregate of all expenses paid or incurred by such Person, but
      excluding organization and offering expenses, interest payments, taxes, non-cash
      expenditures, any Acquisition Fee or other acquisition expenses.

     

    2.
      Duties
      of Advisor.
      The
      Company, on its own behalf, and as general partner of the OP, hereby retains
      and
      appoints the Advisor as the advisor of the Company and the OP to perform the
      services hereinafter set forth, and the Advisor hereby accepts such appointment,
      all subject to the terms and conditions hereinafter set forth. In the
      performance of this undertaking, subject to the supervision of the Board of
      Directors and consistent with the provisions of the Company’s Charter and the
      Agreement of Limited Partnership of the OP (the “Partnership Agreement”), the
      Advisor shall devote sufficient resources to the administration of the Company
      to discharge is obligations hereunder and shall:

     

    a.
      obtain
      for the Advisees, furnish and/or supervise the services necessary to perform
      any
      ministerial functions in connection with the management of the day-to-day
      operations of the Advisees;

     

    b.
      use
      its best efforts to seek out, present and recommend to the Advisees, whether
      through its own efforts or those of third parties retained by it, suitable
      investment opportunities that are consistent with the Advisees’ respective
      investment objectives and policies and acquisition strategy and objectives,
      as
      adopted by the Board of Directors from time to time, and negotiate on behalf
      of
      the Advisees with respect to potential investments or the disposition
      thereof;

     

    c.
      exercise absolute discretion, subject to the Board of Directors’ review, in
      decisions to originate, acquire, retain or sell real properties, provided,that,
      the
      Advisor may acquire on behalf of the Advisees any real property with purchase
      price that is less than $15,000,000, or finance such an acquisition on the
      Advisees’ behalf, without the prior approval of the Board of Directors if and to
      the extent that:

     

    i.
      the
      proposed acquisition or financing would not, if consummated, violate or conflict
      with the investment guidelines of the Advisees as set forth in the
      Prospectus;

     

    ii.
      the
      proposed acquisition or financing would not, if consummated, violate the
      restriction set forth in section 2(f) below; and

     

    iii.
      the
      consideration proposed to be paid for such real property does not exceed the
      fair market value of such property, as determined by a qualified independent
      real estate appraiser selected in good faith by the Advisor and acceptable
      to
      the Independent Directors;

     

    d.
      recommend investment opportunities consistent with the Advisees’ respective
      investment objectives and policies and negotiate on behalf of the Advisees
      with
      respect to potential investments or the disposition thereof;

     

    e.
      structure the terms and conditions pursuant to which acquisitions of properties
      will be made, subject to the Board of Directors’ review;

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    f.
      arrange for financing and refinancing of properties, subject to the Board of
      Directors’ prior approval if such financing or refinancing, when consummated
      causes the total leverage on each such property or on all such properties in
      the
      aggregate to exceed 75% of such property’s or properties’, as the case may be,
      fair market value;

     

    g.
      obtain
      for the Advisees such other services as may be required in acquiring or
      disposing of investments, disbursing and collecting the funds of the Advisees,
      paying the debts and fulfilling the obligations of the Advisees, and handling,
      prosecuting and settling any claims of the Advisees;

     

    h.
      obtain
      for the Advisees such services as may be required for property management,
      leasing, mortgage brokerage and servicing, and other activities relating to
      the
      investment portfolio of the Advisees;

     

    i.
      supervise the servicing of the Advisees’ loan portfolios;

     

    j.
      administer the Advisee’s respective bookkeeping and accounting functions, and
      prepare, or cause to be prepared, statements and other relevant information
      for
      distribution to stockholders or partners, as the case may be, including annual
      and quarterly reports and any filings required by regulatory
      authorities;

     

    k.
      monitor operations and expenses of the Advisees;

     

    l.
      from
      time to time, or as requested by the Board of Directors, make reports to the
      Advisees as to its performance of the foregoing services;

     

    m.
      perform any other powers of the Board of Directors or the Company (as general
      partner of the OP) which (with respect to the Company) are set forth in the
      Charter and the Partnership Agreement, as applicable, which may be delegated
      to
      it by the Board of Directors from time to time;

     

    n.
      render
      such other services as the Board of Directors deems appropriate;
      and

     

    o.
      do all
      things necessary to assure its ability to render the services contemplated
      herein.

     

    3.
      Fiduciary
      Relationship.
      The
      Advisor, as a result of its relationship with the Advisees pursuant to this
      Agreement, stands in a fiduciary relationship with the stockholders of the
      Company and the partners of the OP.

     

    4.
      No
      Partnership or Joint Venture.
      The
      Advisees and the Advisor are not partners or joint venturers with each other
      and
      nothing herein shall be construed to make them partners or joint venturers
      or
      impose any liability as such on either of them.

     

    5.
      Records.
      At all
      times, the Advisor shall keep books of account and records relating to services
      performed hereunder, which books of account and records shall be accessible
      for
      inspection by the Advisees and the Advisee’s appointees at any time during the
      ordinary business hours of the Advisor.

     

    6.
      REIT
      Qualification; Other Limitations on Advisor Actions.
      Anything else in this Agreement to the contrary notwithstanding, the Advisor
      shall refrain from any action which, in its sole judgment made in good faith,
      or, in the judgment of the Board of Directors provided that the Board of
      Directors give the Advisor written notice to such effect, would (a) adversely
      affect the status of the Company as a real estate investment trust pursuant
      to
      Section 856 of the Internal
      Revenue Code of 1986, as amended (the “Code”);
      (b)
      cause the Advisees to be classified as an “investment company” for purposes of
      the Investment Company Act of 1940, as amended, (c) cause the OP to be
      classified other than as a partnership for purposes of the Code; (d) violate
      any
      law, rule, regulation or statement of policy of any governmental body or agency
      having jurisdiction over the Advisees or over their securities, or (e) be
      prohibited by the Company’s Charter or the Partnership Agreement of the
      OP.

     

    7.
      Bank
      Accounts.
      The
      Advisor may establish and maintain one or more bank accounts in the name of
      the
      Advisees or in its own name as agent for the Advisees and may collect and
      deposit in and disburse from any such account, any money on behalf of the
      Advisees, under such terms and conditions as the Board of Directors may approve,
      provided that no funds in such account shall be commingled with funds of the
      Advisor. From time to time and upon appropriate request, the Advisor shall
      render appropriate accounting of such collections and payments to the Board
      of
      Directors and the auditors of the Advisees.

     

    8.
      Bond.
      If
      required by the Board of Directors, the Advisor will maintain a fidelity bond
      with a responsible surety company in such amounts as may be required by the
      Board of Directors, covering all members or partners thereof together with
      employees and agents of the advisor handling funds of the Advisees and
      investment documents or records pertaining to investments of the Advisees.
      Such
      bonds shall inure to the benefit of the Advisees in respect of losses from
      acts
      of such partners, employees and agents through theft, embezzlement, fraud,
      negligence, error or omission or otherwise. The premiums on such bonds shall
      be
      paid by the Advisees.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    9.
      Information
      Furnished to Advisor.
      The
      Board of Directors shall, at all times, keep the Advisor fully informed with
      regard to the investment policies of the Advisees, including any specific types
      of real properties, mortgage investments and mortgage securities desired, and
      any criteria or conditions established by the Board of Directors as to whether
      the Advisees will make a particular investment, the capitalization policy of
      the
      Advisees (including the policy with regard to the incurrence of indebtedness
      by
      the Advisees) and their intentions as to the future operations of the Advisees.
      In particular, the Board of Directors shall notify the Advisor promptly of
      their
      intention to either sell or otherwise dispose of any of the Advisees’
investments, to make any new investment, to incur any indebtedness or to issue
      any additional shares of Common Stock or Preferred Stock of the Company or
      any
      partnership interests in the OP.

     

    10.
      Consultation
      and Advice.
      In
      addition to the services described above, the Advisor shall consult with the
      Board of Directors and shall, at the request of the Board of Directors of the
      Company, furnish advice and recommendations with respect to other aspects of
      the
      business and affairs of the Advisees.

     

    11.
      Fees
      and Other Compensation of the Advisor.

     

    a.
      The
      Advisor or its designees shall be entitled to receive from the respective
      Advisees (except those payable by others as noted below) the following fees
      and
      other compensation, which shall be paid to the Advisor by the OP on its own
      behalf or on behalf of the Company:

     

    (i)
      Acquisition
      Fee.
      The
      Advisor or its Affiliates shall receive an acquisition fee (the “Acquisition
      Fee”)
      in an
      amount equal to ninety five basis points (0.95%) of the gross contract purchase
      price of each property acquired
      by an Advisee, including the amount of any mortgage securing such property,
      payable by the OP on behalf of the applicable Advisee upon consummation of
      the
      investment; provided
      ,
that
      , the
      Acquisition Fee, together with any and all Acquisition Expenses and other
      acquisition fees paid to the Advisor or to any third parties, whether or not
      affiliated with the Advisor or the Advisees, shall not exceed, in the aggregate,
      five (5.0%) per cent of the gross contract purchase price of a particular
      property, including the amount of any mortgage securing such property. In the
      event that such acquisition fees and expenses, including the Acquisition Fee,
      exceed such limitation, the Acquisition Fee shall be reduced by such excess
      amount.

     

    (ii)
      Asset
      Management Fee.
      The
      Advisor or its Affiliates shall receive an asset management fee (the
“Asset
      Management Fee”)
      in an
      amount equal to ninety five basis points (0.95%) per annum of Average Invested
      Assets. The Asset Management Fee is payable quarterly, in arrears at the end
      of
      each calendar quarter, in an amount of 0.2375% of Average Invested Assets in
      the
      immediately preceding quarter.

     

    (iii)
      Fees
      for Additional Services.
      Subject
      to Section 14 below, the Advisor shall be entitled to receive compensation
      for
      any additional services requested from time to time by the Advisees on separate
      agreed-upon terms, subject to approval by a majority of the Independent
      Directors as being fair and reasonable to the Company.

     

    b.
      No
      Property Disposition Fee.
      The
      Advisor shall not be entitled to receive any fee in connection with property
      sold or otherwise disposed of by any Advisee, although independent third parties
      may be compensated in such circumstances. 

     

    c.
      Stockholder/Partner
      Interests Distributions.
      The
      Advisor shall be entitled to receive distributions from the Advisees in respect
      of any shares of Common Stock of the Company or partner interests of the OP
      which it holds, along with the other holders of such shares or
      interests.

     

    12.
      Statements.
      Prior
      to the payment of any fees hereunder, the Advisor shall furnish to the Advisees
      a statement showing the computation of the fees, if any, payable under Section
      11 hereof.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

    

    13.
      Expenses
      of the Company.

     

    a.
      The
      OP, on its own behalf and on behalf of the Company, shall pay all of the
      Advisees’ expenses. Without limiting the foregoing, it is specifically agreed
      that the following expenses of an Advisee shall be paid by the OP on its own
      behalf or on behalf of the Company and shall not be borne by the Advisor unless
      such expense is a fee or other service for which the Advisor is otherwise
      receiving a fee from the Advisees:

     

    (i)
      the
      cost of money borrowed by the Advisee;

     

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

     

    (iii)
      fees and expenses paid to independent contractors, unaffiliated mortgage
      servicers, consultants, managers and other agents employed by or no behalf
      of
      the Advisee;

     

    (iv)
      Acquisition Expenses and expenses directly connected with the ownership and
      disposition of real property or other investments, and with the purchase or
      origination of real property and mortgage investments (including the costs
      of
      foreclosure, insurance premiums, legal services, brokerage and sales commission,
      maintenance, repair and improvement of property);

     

    (v)
      expenses of maintaining and managing real estate equity interests, processing
      and servicing mortgage and other loans and managing the Advisee’s other
      investments;

     

    (vi)
      insurance coverage in connection with the business of the Advisee (including
      officers’, directors’ and partners’ liability insurance);

     

    (vii)
      the
      expenses of dissolving and liquidating the Advisee or revising, amending or
      modifying its organizational documents;

     

    (viii)
      expenses connected with payments of dividends or interest or distribution in
      cash or any other form made or caused to be made by the Board of Directors
      to
      the stockholders or partners, as the case may be, of such Advisee.

     

    (ix)
      all
      expenses connected with communications to stockholders or partners, as the
      case
      may be, and other bookkeeping and clerical work necessary in maintaining
      relations with the stockholders or partners, as the case may be, including
      the
      cost of printing and mailing certificates for securities, proxy solicitation
      materials and reports to holders of the Advisee’s securities;

     

    (x)
      the
      cost of any accounting, statistical or bookkeeping equipment necessary for
      the
      maintenance of the books and records of the Advisee;

     

    (xi)
      transfer agent’s and registrar’s fees and charges; and

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    (xii)
      other legal, accounting and auditing fees and expenses as well as any costs
      incurred in connection with any litigation in which the Advisee is involved
      and
      the examination, investigation or other proceedings conducted by any regulatory
      agency with respect to the Advisee.

     

    b.
      The
      Advisor shall bear the expenses it incurs in connection with performing its
      duties under the advisory agreement. These include salaries and fringe benefits
      of its directors and officers and travel and other administrative expenses
      of
      its directors or officers.

     

    c.
      The OP
      shall reimburse the Advisor and its Affiliates on its own behalf or on behalf
      of
      the Company for (i) advertising expenses, expense reimbursements, and legal
      and
      accounting fees; (ii) the actual cost of goods and materials used by the
      Advisees and obtained from entities not affiliated with the Advisor; (iii)
      administrative services (including personnel costs; provided, however, that
      no
      reimbursement shall be made
      for
      costs of personnel to the extent that such personnel perform services in
      transactions for which the Advisor receives a separate fee); (iv) acquisition
      expenses, which include travel and expenses related to the selection and
      acquisition of properties, whether or not acquired, for goods and services
      provided by the Advisor; (v) rent, leasehold improvement costs, utilities or
      other administrative items generally constituting Advisor’s overhead; and (vi)
      expenses related to negotiating and servicing mortgage loans. In no event shall
      the OP reimburse the Advisor for any services for which the Advisor shall
      receive a separate fee. The amounts charged to an Advisee for services performed
      shall not exceed the lesser of (a) the actual cost of such services, or (b)
      the
      amount which such Advisee would be required to pay to independent parties for
      comparable services.

     

    d.
      Notwithstanding the foregoing, reimbursements of expenses and payment of fees
      under this Agreement will be subject to approval by the Board of Directors
      (including the approval of the majority of Independent Directors).

     

    14.
      Reimbursement
      by Advisor.
      For any
      year which the Company qualifies as a real estate investment trust under the
      Code, the Advisor shall be obligated to reimburse the Advisees for the amounts,
      if any, by which the sum of Advisees’ Total Operating Expenses and Asset
      Management Fees paid during the immediately prior fiscal year exceed the greater
      of (i) 2.0% of the Company’s and the OP’s Average Invested Assets during the
      four quarters of such fiscal year, or (ii) 25.0% of the Company’s and the OP’s
      net income for such fiscal year; provided,however,
      that the
      Board of Directors (including a majority of the Independent Directors) may
      require a lower amount which the Advisor shall be obligated to reimburse the
      Company, upon a determination that such lower reimbursement amount is justified
      in light of such unanticipated, unusual or non-recurring factors which may
      have
      occurred within sixty (60) days after the end of the quarter for which the
      excess occurred, and there shall be sent to the stockholders of the Company
      a
      written disclosure of such determination, together with an explanation of the
      factors the Board of Directors considered in arriving at the conclusion that
      the
      higher Total Operating Expenses were justified.

     

    15.
      Other
      Activities of Advisor.

     

    (a)
      Except as set forth in this Section 16, nothing in this Agreement shall prevent
      the Advisor or any of its Affiliates from engaging in other business activities
      related to real estate, mortgage investments or other investments whether
      similar or dissimilar to those made by any of the Advisees or from acting as
      advisor to any other person or entity having investment policies whether similar
      or dissimilar to those of the Company or the OP (including other REITs or
      partnerships); provided,that,
      before
      the Advisor and all Persons controlled by the Advisor may take advantage of
      an
      opportunity for their own account or present or recommend it to others, they
      are
      obligated to present an investment opportunity to an Advisee if (i) such
      opportunity is compatible with such Advisee’s investment objectives and policies
      (including such Advisee’s requirements relating to all pertinent factors,
      including diversification, property type and location), (ii) such opportunity
      is
      of a character which could be taken by such Advisee, and (iii) the Advisee
      has
      the financial resources to take advantage of such opportunity. In furtherance,
      and not in limitation, of the immediately preceding sentence, neither the
      Advisor nor any Affiliate of the Advisor may make any investment in residential,
      retail, industrial and office properties where the investment objective is
      substantially similar to the investment objectives of the Advisees until such
      time as seventy five percent (75.0%) of the total gross proceeds from the
      offering of the Company’s shares offered for sale pursuant to a registration
      statement on Form S-11 filed with the SEC, following final closing of such
      offering, have been invested or committed for investment in such
      properties.

     

    (b)
      The
      Advisor will use its best efforts to present suitable investments to the
      Advisees consistent with their investment procedures, objectives and policies.
      If the Advisor or any of its Affiliates is presented with a potential investment
      in a property which might be made by more than one investment entity which
      it
      advises or manages, the decision as to the suitability of the property for
      investment by a particular entity will be based upon a review of the investment
      portfolio of each entity and upon factors such as: (i) cash flow from the
      property; (ii) the effect of the acquisition of the property on the
      diversification of each entity’s portfolio; (iii) rental payments during any
      renewal period; (iv) the amount of equity required to make the
      investment; (v) the policies of each entity relating to leverage; (vi) the
      funds
      of each entity available for investment; and (vii) the length of time the funds
      have been available for investment and the manner in which the potential
      investment can be structured by each entity. To the extent that a particular
      property might be determined to be suitable for more than one investment entity,
      priority generally will be given to the investment entity having uninvested
      funds for the longest period of time.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    16.
      Term;
      Termination of Agreement.
      This
      Agreement shall continue in force for a period of one year from the date hereof
      (the “Initial Term”) and thereafter it may be renewed from year to year by
      written consent of the parties hereto. Notwithstanding any other provision
      to
      the contrary, this Agreement may be terminable by the Advisor or by the Advisees
      (upon determination of the majority of the Independent Directors) at any time
      upon 60 days’ prior written notice to the non-terminating party. In the event of
      the termination of this Agreement, the Advisor will cooperate with the Advisees
      and take all reasonable steps requested to assist the Advisees in making an
      orderly transition of the advisory function.

     

    17.
      Amendments.
      This
      Agreement shall not be changed, modified, terminated or discharged in whole
      or
      in part except by an instrument in writing signed by all parties hereto, or
      their respective successors or permitted assigns, or otherwise as provided
      herein.

     

    18.
      Assignment.
      This
      Agreement may not be assigned by the Advisor, except to an Affiliate of the
      Advisor, and then only upon the consent of the Advisees and the approval of
      a
      majority of the Independent Directors. Any assignee of the Advisor shall be
      bound hereunder to the same extent as the Advisor. This Agreement shall not
      be
      assigned by any Advisee without the written consent of the Advisor, except
      to a
      corporation, association, trust or other organization which is a successor
      to
      such Advisee. Such successor shall be bound hereunder to the same extent as
      such
      Advisee. Notwithstanding anything to the contrary contained herein, the economic
      rights of the Advisor hereunder, including the right to receive all compensation
      hereunder, may be sold, transferred or assigned by the Advisor without the
      consent of the Advisees.

     

    19.
      Action
      Upon Termination.
      From and
      after the effective date of termination of this Agreement, pursuant to Section
      16 hereof, the Advisor shall not be entitled to compensation for further service
      rendered hereunder but shall be paid all compensation and reimbursed for all
      expenses accrued through the date of termination within thirty (30) days of
      such
      termination. The Advisor shall forthwith upon such termination:

     

    (a)
      Pay
      over to the Advisees all moneys collected and held for the account of such
      Advisees pursuant to this Agreement, after deducting any accrued compensation
      and reimbursement for its expenses to which it is then entitled;

     

    (b)
      Deliver to the Advisees a full accounting, including a statement showing all
      payments collected by it and a statement of all moneys held by it, covering
      the
      period following the date of the last accounting furnished to the Advisees;
      and

     

    (c)
      Deliver to the Advisees all property and documents of the Advisees then in
      the
      custody of the Advisor.

     

    20.
      Incorporation
      of the Charter and the Partnership Agreement.
      To the
      extent the Charter or the Partnership Agreement impose obligations or
      restrictions on the Advisor or grant the Advisor certain rights which are not
      set forth in this Agreement, the Advisor shall abide by such obligations or
      restrictions and such rights shall inure to the benefit of the Advisor with
      the
      same force and effect as if they were set forth herein.

     

    21.
      Standard of Care.

     

    a.
      The
      Advisor assumes no responsibility under this Agreement other than to render
      the
      services called for hereunder in good faith, and shall not be responsible for
      any action of the Advisees in following or
      declining to follow any advice or recommendations of the Advisor. Neither the
      advisor nor its directors, officers, partners, members, and employees shall
      be
      liable to the Advisees, or to the stockholders, partners or directors of the
      Advisees, as the case may be, or to any successor or assignee of the Advisees,
      except by reason of acts constituting bad faith, gross negligence or willful
      misconduct. This shall in no way affect the standard for indemnification but
      shall only constitute a standard of liability. The duties to be performed by
      the
      Advisor pursuant to this Agreement may be performed by it or by officers,
      members or directors or by Affiliates of the foregoing under the direction
      of
      the Advisor or delegated to unaffiliated third parties under its
      direction.

     

    b.
      The
      Advisor shall look solely to the assets of the Advisees for satisfaction of
      all
      claims against the Advisees, and in no event shall any stockholder, partner
      or
      director of the Advisees, as the case may be, have any personal liability for
      the obligations of the Advisees under this Agreement.

     

    22
      .
      Indemnification of Advisor.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    a.
      Subject to sections (b)-(d) below, the Advisees shall indemnify the Advisor
      and
      its Affiliates for any loss arising out of any of their acts or omissions in
      connection with this Agreement and the Advisor and its Affiliates will be held
      harmless for any loss of liability suffered by the Advisees.

     

    b.
      The
      Advisees shall not indemnify the Advisor or its Affiliates for any liability
      loss suffered by the Advisor or its Affiliates, nor shall it hold the Advisor
      or
      its Affiliates harmless for any loss or liability suffered by the Advisees
      unless all of the following conditions are met: (i) the Advisor or its
      Affiliates determined in good faith that the course of conduct which caused
      the
      loss or liability was in the best interests of the Advisees, (ii) the Advisor
      or
      its Affiliates were acting on behalf of the Advisees or performing services
      for
      the Advisees, (iii) such liability or loss or expense was not the result of
      negligence or misconduct on the part of the Advisor or its Affiliates and (iv)
      such indemnification or agreement to hold harmless shall be recoverable only
      out
      of the net assets of the Advisees and not from the stockholders, partners or
      members of the Advisees.

     

    c.
      Not
      withstanding anything to the contrary in subsection b, the Advisees shall not
      indemnify the Advisor or its Affiliates or any persons acting as a broker-dealer
      for any losses, liabilities or expenses arising from or out of an alleged
      violation of federal or state securities laws by such party unless one or more
      of the following conditions are met: (i) there has been a successful
      adjudication on the merits of each count involving alleged securities law
      violations as to the particular Indemnitee, (ii) such claims have been dismissed
      with prejudice on the merits by a court of competent jurisdiction as to the
      particular Indemnitee or (iii) a court of competent jurisdiction approves a
      settlement of the claims against a particular Indemnitee and finds that
      indemnification of the settlement and related costs should be made, and the
      court considering the matter has been advised of the position of the Securities
      and Exchange Commission and the published position of any state securities
      regulatory authority as to indemnification for violations of securities
      law.

     

    d.
      The
      Advisees will advance amounts to the Advisor or its Affiliates for legal
      expenses and other costs incurred as a result of any legal action for which
      indemnification is being sought is permissible only if all of the following
      conditions are satisfied: (i) the legal action relates to acts or omissions
      with
      respect to the performance of duties or services on behalf of the Advisees,
      (ii)
      the legal action is initiated by a third party who is not a Stockholder or
      is
      initiated by a Stockholder acting in his or her capacity as such and a court
      of
      competent jurisdiction specifically approves the advancement and (iii) the
      Advisor or its Affiliates undertake in writing to repay the advanced funds
      to
      the Advisees, together with the applicable legal rate of interest thereon,
      in
      cases in which such the Advisor or its Affiliates are found not to be entitled
      to indemnification.

     

    23.
      Notices.
      Any
      notice, report or other communication required or permitted to be given
      hereunder shall be in writing, and shall be given by delivering such notice
      by
      hand or by certified mail, return receipt requested, postage pre-paid, at the
      following addresses of the parties hereto:

     

    Advisees:

     

    The
      Company:

     

    Lightstone
      Value Plus Real Estate Investment Trust II, Inc.

    326
      Third
      Street

    Lakewood,
      New Jersey 08701

    Attn:  
      David Lichtenstein

              
      Chief Executive Officer

     

    With
      a
      copy to:

     

    Proskauer
      Rose LLP

    1585
      Broadway

    New
      York,
      New York 10036

    Attention:
      Peter M. Fass, Esq.

     

    The
      OP

     

    Lightstone
      Value Plus REIT II LP 

    326
      Third
      Street

    Lakewood,
      New Jersey 08701

     

    With
      a
      copy to:

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    Proskauer
      Rose LLP

    1585
      Broadway

    New
      York,
      New York 10036

    Attention:
      Peter M. Fass, Esq.

     

    The
      Advisor:

     

    Lightstone
      Value Plus REIT II LLC

    326
      Third
      Street

    Lakewood,
      New Jersey 08701

    Attn:  
      David Lichtenstein

              
      Chief Executive Officer

     

    With
      a
      copy to:

     

    Proskauer
      Rose LLP

    1585
      Broadway

    New
      York,
      New York 10036

    Attention:
      Peter M. Fass, Esq.

     

    Any
      party
      may at any time change its address for the purpose of this Section 25 by like
      notice.

     

    24.
      Headings.
      The
      section headings herein have been inserted for convenience of reference only
      and
      shall not be construed to affect the meaning, construction or effect of this
      Agreement.

     

    25.
      No
      Waiver.
      Neither
      the failure nor any delay on the party of a party to exercise any right, remedy,
      power or privilege under this Agreement shall operate as a waiver thereof,
      nor
      shall any single or partial exercise of
      any
      right, remedy, power or privilege preclude any other or further exercise of
      the
      same or of any other right, remedy, power or privilege, nor shall any waiver
      of
      any right, remedy, power or privilege with respect to any occurrence be
      construed as a waiver of such right, remedy, power or privilege with respect
      to
      any other occurrences. No waiver shall be effective unless it is in writing
      and
      is signed by the party asserted to have granted such waiver.

     

    26.
      Counterpart.
      This
      Agreement may be executed in any number of counterparts, each of which shall
      be
      deemed to be an original, and all of which shall together constitute one and
      the
      same instrument.

     

    27.
      Entire
      Agreement.
      This
      Agreement contains the entire agreement and understanding among the parties
      hereto with respect to the subject matter hereof and supersedes all prior and
      contemporaneous agreements, understandings, inducements and conditions, express
      or implied, oral or written, of any nature whatsoever with respect to the
      subject matter hereof.

     

    28 .
      Governing Law.
      The
      provisions of this Agreement shall be construed and interpreted in accordance
      with the laws of the State of New York as at the time in effect.

     

    [END
      OF
      TEXT]

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

     

    

     

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

     

     

    
      	 	 	 
	 	
              LIGHTSTONE
                VALUE PLUS REAL ESTATE INVESTMENT TRUST II, INC.

            
	 
 	 
 	 
 
	 	By:  	 
	 	
              

              Name:
                David Lichtenstein

            
	 	
              Title:
                Chief Executive Officer

            

    

     

    
      
        	 	 	 
	 	
                LIGHTSTONE
                  VALUE PLUS REIT II LP

              
	 
 	 
 	 
 
	 	By: 	
                Lightstone
                  Value Plus Real Estate

                Investment
                  Trust II, Inc.,

              
	 	 	
                its
                  General Partner

              
	 	 	 
	 	By:  	 
	 	
                

                Name:
                  David Lichtenstein

              
	 	
                Title:
                  Chief Executive Officer

              

      

      
         

        
          	 	 	 
	 	
                  
                    LIGHTSTONE
                      VALUE PLUS REIT II LLC

                  

                
	 
 	 
 	 
 
	 	By:  	 
	 	
                  

                  Name:
                    David Lichtenstein

                
	 	
                  Title:
                    Authorized PersonFORM
      OF
      MANAGEMENT AGREEMENT

     

      This
      management agreement (this “Management
      Agreement”)
      is
      made and entered into as of the day of , 2008, by and among LIGHTSTONE VALUE
      PLUS REAL ESTATE INVESTMENT TRUST II, INC., a Maryland corporation (the
“Company”),
      LIGHTSTONE VALUE PLUS REIT II LP, a Delaware limited partnership (the
“OP”,
      and
      together with the Company, the “Owner”),
      and
PRIME
      RETAIL PROPERTY MANAGEMENT,
      LLC, a
      Delaware limited liability company (the “Manager”).

     

    WHEREAS,
      the OP was organized to acquire, own, operate, lease and manage real estate
      properties on behalf of the Company; and

     

    WHEREAS,
      the Company intends to continue to raise money from the sale of its common
      stock
      to be used, net of payment of certain offering costs and expenses, for
      investment in the acquisition or rehabilitation of income-producing real estate
      to be acquired and held by the Company or by the OP on behalf of the Company;
      and

     

    WHEREAS,
      Owner wishes to retain Manager to manage and coordinate the leasing of certain
      real estate properties acquired by Owner, and the Manager wishes to be so
      retained, all under the terms and conditions set forth in this Management
      Agreement. 

     

    NOW,
      THEREFORE, in consideration of the premises and other good and valuable
      consideration, the receipt and sufficiency of which are hereby acknowledged,
      the
      parties hereto, intending to be legally bound hereby, do hereby agree as
      follows:

     

    ARTICLE
      I.

     

    DEFINITIONS

     

    Except
      as
      otherwise specified or as the context may otherwise require, the following
      terms
      have the respective meanings set forth below for all purposes of this Management
      Agreement, and the definitions of such terms are equally applicable both to
      the
      singular and plural forms thereof

     

    “Account”
has
      the
      meaning set forth in Section
      2.3(i)
      hereof.

     

    “Affiliate”
means
      a
      person who is (i) in the case of an individual, any relative of such person,
      (ii) any officer, director, trustee, partner, manager, employee or holder of
      ten
      percent (10%) or more of any class of the voting securities of or equity
      interest in such person; (iii) any corporation, partnership, limited liability
      company, trust or other entity controlling, controlled by or under common
      control with such person; or (iv) any officer, director, trustee, partner,
      manager, employee or holder of ten percent (10%) or more of the outstanding
      voting securities of any corporation, partnership, limited liability company,
      trust or other entity controlling, controlled by or under common control with
      such person. For purposes of this definition, the term “controls,” “is
      controlled by,” or “is under common control with” shall mean the possession,
      direct or indirect, of the power to direct or cause the direction of the
      management and policies of an entity, whether through the ownership of voting
      rights, by contract or otherwise.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Director”
means
      a
      member of the board of directors of the Company.

     

    “Funds
      From Operations”
shall
      mean net income (computed in accordance with GAAP), excluding gains or losses
      from debt restructuring and sales of Properties, plus depreciation of real
      property and amortization, and after adjustments for unconsolidated partnerships
      and joint ventures.

     

    “GAAP”
shall
      mean United States generally accepted accounting principals, consistently
      applied.

     

    “Gross
      Revenues”
means
      all amounts actually collected as rents or other charges for the use and
      occupancy of the Properties, but shall exclude interest and other investment
      income of Owner and proceeds received by Owner for a sale, exchange,
      condemnation, eminent domain taking, casualty or other disposition of assets
      of
      Owner.

     

    “Improvements”
means
      buildings, structures, equipment from time to time located on the Properties
      and
      all parking and common areas located on the Properties.

     

    “Independent
      Director”
shall
      have the meaning set forth in the charter of the Company as in effect from
      time
      to time.

     

    “Management
      Fees”
has
      the
      meaning set forth in Section
      4.1
      hereof.

     

    “Properties”
means
      all real estate properties owned by Owner and all tracts as yet unspecified
      but
      to be acquired by Owner containing income-producing Improvements or on which
      Owner will rehabilitate income-producing Improvements. For the purposes of
      this
      Management Agreement, the term “Properties” shall only refer to retail
      properties and not residential, industrial or office properties. 

     

    “Share”
shall
      mean a share of the common stock, par value $0.01, of the Company.

     

    ARTICLE
      II

    

    APPOINTMENT
      OF MANAGER; SERVICES TO BE PERFORMED

     

    2.1    Appointment
      of Manager.
      Owner
      hereby engages and retains Manager as the sole and exclusive manager and agent
      of the Properties, and Manager hereby accepts such appointment, all on the
      terms
      and conditions hereinafter set forth, it being understood that this Management
      Agreement shall cause Manager to be, at law, Owner’s agent upon the terms
      contained herein.

     

    2.2    General
      Duties.
      Manager
      shall devote its best efforts to performing its duties hereunder to manage,
      operate, maintain and lease the Properties in a diligent, careful and vigilant
      manner. The services of Manager are to be of scope and quality not less than
      those generally performed by professional property managers of other similar
      properties in the area. Manager shall make available to Owner the full benefit
      of the judgment, experience and advice of the members of Manager’s organization
      and staff with respect to the policies to be pursued by Owner relating to the
      operation and leasing of the Properties.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    2.3    Specific
      Duties.
      Manager’s duties include the following:

     

    
      	(a) 	
              Lease
                Obligations.
                Manager shall perform all duties of the landlord under all leases
                insofar
                as such duties relate to operation, maintenance, and day-to-day
                management. Manager shall also provide or cause to be provided, at
                Owner’s
                expense, all services normally provided to tenants of like premises,
                including, where applicable and without limitation, gas, electricity
                or
                other utilities required to be furnished to tenants under leases,
                normal
                repairs and maintenance, and cleaning, and janitorial service. Manager
                shall arrange for and supervise the performance of all installations
                and
                improvements in space leased to any tenant which are either expressly
                required under the terms of the lease of such space or which are
                customarily provided to tenants.

            

    

     

    
      	(b) 	
              Maintenance.
                Manager shall cause the Properties to be maintained in the same manner
                as
                similar properties in the area. Manager’s duties and supervision in this
                respect shall include, without limitation, cleaning of the interior
                and
                the exterior of the Improvements and the public common areas on the
                Properties and the making and supervision of repair, alterations,
                and
                decoration of the Improvements, subject to and in strict compliance
                with
                this Management Agreement and any applicable leases. Construction
                and
                rehabilitation activities undertaken by the Manager, if any, will
                be
                limited to activities related to the management, operation, maintenance,
                and leasing of the Property (e.g., repairs, renovations, and leasehold
                improvements).

            

    

     

    
      	(c)  	
              Leasing
                Functions.
                Manager shall coordinate the leasing of the Properties and shall
                negotiate
                and use its best efforts to secure executed leases from qualified
                tenants,
                and to execute same on behalf of Owner, if requested, for available
                space
                in the Properties, such leases to be in form and on terms approved
                by
                Owner and Manager, and to bring about complete leasing of the Properties.
                Manager shall be responsible for the hiring of all leasing agents,
                as
                necessary for the leasing of the Properties, and to otherwise oversee
                and
                manage the leasing process on behalf of the
                Owner.

            

    

     

    
      	(d)
               	
              Notice
                of Violations.
                Manager shall forward to Owner promptly upon receipt all notices
                of
                violation or other notices from any governmental authority, and board
                of
                fire underwriters or any insurance company, and shall make such
                recommendations regarding compliance with such notice as shall be
                appropriate.

            

    

     

    
      	(e)  	
              Personnel.
                Any personnel hired by Manager to maintain, operate and lease the
                Property
                shall be the employees or independent contractors of Manager and
                not of
                the Owner. Manager shall use due care in the selection and supervision
                of
                such employees or independent contractors. Manager shall be responsible
                for the preparation of and shall timely file all payroll tax reports
                and
                timely make payments of all withholding and other payroll taxes with
                respect to each employee.

            

    

     

    
      	(f)  	
              Utilities
                and Supplies.
                Manager shall enter into or renew contracts for electricity, gas,
                steam,
                landscaping, fuel, oil, maintenance and other services as are customarily
                furnished or rendered in connection with the operation of similar
                rental
                property in the area.

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	(g) 	
              Expenses.
                Manager shall analyze all bills received for services, work and supplies
                in connection with the maintaining and operating the Properties,
                pay all
                such bills, and, if requested by Owner, pay, when due, utility and
                water
                charges, sewer rent and assessments, any applicable taxes, including,
                without limitation, any real estate taxes, and any other amount payable
                in
                respect to the Properties. All bills shall be paid by Manager within
                the
                time required to obtain discounts, if any. Owner may from time to
                time
                request that Manager forward certain bills to Owner promptly after
                receipt, and Manager shall comply with any such request. It is understood
                that the payment of real property taxes and assessment and insurance
                premiums will be paid out of the Account (as hereinafter defined)
                by
                Manager. All expenses shall be billed at net cost (i.e., less all
                rebates,
                commissions, discounts and allowances, however
                designed).

            

    

     

    
      	(h) 	
              Monies
                Collected.
                Manager shall collect all rent and other monies from tenants and
                any sums
                otherwise due Owner with respect to the Properties in the ordinary
                course
                of business. In collecting such monies, Manager shall inform tenants
                of
                the Properties that all remittances are to be in the form of a check
                or
                money order. Owner authorizes Manager to request, demand, collect
                and
                receipt for all such rent and other monies and to institute legal
                proceedings in the name of Owner for the collection thereof and for
                the
                dispossession of any tenant in default under its lease.
                

            

    

     

    
      	(i)  	
              Banking
                Accommodations.
                Manager shall establish and maintain a separate checking account
                (the
                “Account”)
                for funds relating to the Properties. All monies deposited from time
                to
                time in the Account shall be deemed to be trust funds and shall be
                and
                remain the property of Owner and shall be withdrawn and disbursed
                by
                Manager for the account of Owner only as expressly permitted by this
                Management Agreement for the purposes of performing the obligations
                of
                Manager hereunder. No monies collected by Manager on Owner’s behalf shall
                be commingled with funds of Manager. The Account shall be maintained,
                and
                monies shall be deposited therein and withdrawn therefrom, in accordance
                with the following:

            

    

     

    (i)  All
      sums
      received from rents and other income from the Properties shall be promptly
      deposited by Manager in the Account. Manager shall have the right to designate
      two or more persons who shall be authorized to draw against the Account, but
      only for purposes authorized by this Management Agreement.

     

    (ii)  All
      sums
      due to Manager hereunder, whether for compensation, reimbursement for
      expenditures, or otherwise, as herein provided, shall be a charge against the
      operating revenues of the Properties and shall be paid and/or withdrawn by
      Manager from the Account prior to the making of any other disbursements
      therefrom.

     

    (iii)  
      By the
      30th day of the first month following each calendar quarter, Manager shall
      forward to Owner net operating proceeds from the preceding quarter, retaining
      at
      all times, however a reserve of $5,000, in addition to any amounts otherwise
      provided in the budget.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	(j)  	
              Tenant
                Complaints.
                Manager shall maintain business-like relations with the tenants of
                the
                Properties.

            

    

     

    
      	(k) 	
              Ownership
                Agreements.
                Manager has received copies of the Agreement of Limited Partnership
                of the
                OP and the constitutive documents of the Company (collectively, the
                “Ownership
                Agreements”)
                and is familiar with the terms thereof. Manager shall use reasonable
                care
                to avoid any act or omission which, in the performance of its duties
                hereunder, shall in any way conflict with the terms of the Ownership
                Agreements.

            

    

     

    
      	(l)  	
              Signs.
                Manager shall place and remove, or cause to be placed and removed,
                such
                signs upon the Properties as Manager deems appropriate, subject,
                however,
                to the terms and conditions of the leases and to any applicable ordinances
                and regulations.

            

    

     

    2.4    Approval
      of Leases, Contracts, Etc.
      In
      fulfilling its duties to the Owner, Manager may and hereby is authorized to
      enter into any leases, contracts or agreements on behalf of the Owner in the
      ordinary course of the management, operation, maintenance and leasing of the
      Property.

     

    2.5    Accounting,
      Records and Reports.

     

    
      	(a) 	
              Records.
                Managers shall maintain all office records and books of account and
                shall
                record therein, and keep copies of, each invoice received from services,
                work and supplies ordered in connection with the maintenance and
                operation
                of the Properties. Such records shall be maintained on a double entry
                basis. Owner and persons designated by Owner shall at all reasonable
                time
                have access to and the right to audit and make independent examinations
                of
                such records, books and accounts and all vouchers, files and all
                other
                material pertaining to the Properties and this Management Agreement,
                all
                of which Manager agrees to keep safe, available and separate from
                any
                records not pertaining to the Properties, at a place recommended
                by
                Manager and approved by Owner.

            

    

     

    
      	(b)  	
              Quarterly
                Reports.
                On or before the 30th day of the first month following each calendar
                quarter for which such report or statement is prepared and during
                the term
                of this Management Agreement, Manager shall prepare and submit to
                Owner
                the following reports and
                statements:

            

    

     

    
      	(i)  	
              Rental
                collection record;

            

    

     

    
      	(ii)  	
              Quarterly
                operating statement;

            

    

     

    
      	(iii)  	
              Copy
                of cash disbursements ledger entries for such period, if
                requested;

            

    

     

    
      	(iv)  	
              Copy
                of cash receipts ledger entries for such period, if
                requested;

            

    

     

    
      	(v)  	
              The
                original copies of all contracts entered into by Manager on behalf
                of
                Owner during such period, if requested;
                and

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	(vi)  	
              Copy
                of ledger entries for such period relating to security deposits maintained
                by Manager, if requested.

            

    

     

    
      	(c)  	
              Budgets
                and Leasing Plans.
                Not later than November 15 of each calendar year, Manager shall prepare
                and submit to Owner for its approval an operating budget and a marketing
                and leasing plan on the Properties for the calendar year immediately
                following such submission. The budget and leasing plan shall be in
                the
                form of the budget and plan approved by Owner prior to the date thereof.
                As often as reasonably necessary during the period covered by any
                such
                budget, Manager may submit to Owner for its approval an updated budget
                or
                plan incorporating such changes as shall be necessary to reflect
                cost
                over-runs and the like during such period. If Owner does not disapprove
                any such budget within 30 days after receipt thereof by Owner, such
                budget
                shall be deemed approved. If Owner shall disapprove any such budget
                or
                plan, it shall so notify Manager within said 30-day period and explain
                the
                reasons therefor. Manager will not incur any costs other than those
                estimated in any budget except for:

            

    

     

    
      	(i)  	
              maintenance
                or repair costs under $5,000; 

            

    

     

    
      	(ii)  	
              costs
                incurred in emergency situations in which action is immediately necessary
                for the preservation or safety of the Property, or for the safety
                of
                occupant or other person (or to avoid the suspension of any necessary
                service of the Property);

            

    

     

    
      	(iii)  	
              expenditures
                for real estate taxes and assessment;
                and

            

    

     

    
      	(iv)  	
              maintenance
                supplies calling for an aggregate purchase price less than
                $25,000.

            

    

     

    
      	(d)  	
              Returns
                Required by Law.
                Manager shall execute and file when due all forms, reports, and returns
                required by law relating to the employment of its
                personnel.

            

    

     

    
      	(e)  	
              Notices.
                Promptly after receipt, Manager shall deliver to Owner all notices,
                from
                any tenant, or any governmental authority, that are not a routine
                nature.
                Managers shall also report expeditiously to Owner notice of any extensive
                damage to any part of the
                Properties.

            

    

     

    2.6    Subcontracting.
      Notwithstanding anything to the contrary contained in this Agreement, the
      Manager may subcontract any of its duties hereunder, without the consent of
      the
      Owner being required, for a fee that may be less than the Management Fees paid
      hereunder. In the event that the Manager does so contract any of its duties
      hereunder, such fees payable to such third parties may, at the instruction
      of
      the Manager, be deducted from the monthly Management Fee payable to the Manager
      hereunder and paid by the Owner to such parties, or paid directly by the Manager
      to such parties, in its discretion. 

     

    ARTICLE
      III

    

    EXPENSES

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    3.1    Owner’s
      Expenses.
      Except
      as otherwise specifically provided, all costs and expenses incurred hereunder
      by
      Manager in fulfilling its duties to Owner shall be for the account of and on
      behalf of Owner. Such costs and expenses may include reasonable wages and
      salaries and other employee-related expenses of all on-site and off-site
      employees of Manager who are engaged in the operation, management, maintenance
      and leasing or access control of the Properties, including taxes, insurance
      and
      benefits relating to such employees, and legal, travel and other out-of-pocket
      expenses which are directly related to the management of specific Properties.
      All costs and expenses for which Owner is responsible under this Management
      Agreement shall be paid by Manager out of the Account. In the event said account
      does not contain sufficient funds to pay all said expenses, Owner shall fund
      all
      sums necessary to meet such additional costs and expenses.

     

    3.2    Manager’s
      Expenses.
      Manager
      shall, out of its own funds, pay all of its general overhead and administrative
      expenses.

     

    ARTICLE
      IV

    

    MANAGER’S
      COMPENSATION

     

    4.1    Management
      Fees.
      Manager
      shall provide the services described in Article II in return for fees (the
      “Management
      Fees”),
      which
      shall be payable by the OP on a monthly basis, and shall equal 5% of Gross
      Revenues from Properties, including all rent-up, leasing, and re-leasing fees
      and bonuses paid to any person. Notwithstanding the foregoing, Manager may
      be
      entitled to receive higher fees in the event Manager can demonstrate to the
      satisfaction of the board of directors of the Company (including a majority
      of
      the Independent Directors) through empirical data that a higher competitive
      fee
      is justified for the services rendered and the type of Property managed. As
      described in Section
      2.6
      above,
      in the event that Manager properly engages one or more third parties to perform
      the services described herein, the fees payable to such parties for such
      services will be deducted from the monthly Management Fees payable by the OP
      to
      Manager, or paid directly by Manager, at Manager’s option. Manager’s
      compensation under this Section
      4.1
      shall
      apply to all renewals, extensions or expansions of leases which Manager has
      originally negotiated.

     

    4.2    Additional
      Fees.
      In the
      event that the Manager provides services other than those specified herein,
      the
      OP shall pay to Manager a monthly fee equal to no more than that which the
      OP
      would pay to a third party that is not an Affiliate of the Owner or the Manager
      to provide such services.

     

    4.3    Audit
      Adjustment.
      If any
      audit of the records, books or accounts relating to the Properties discloses
      an
      overpayment or underpayment of Management Fees, Owner or Manager shall promptly
      pay to the other party the amount of such overpayment or underpayment, as the
      case may be. If such audit discloses an overpayment of Management Fees for
      any
      fiscal year of more than the correct Management Fees for such fiscal year,
      Manager shall bear the cost of such audit.

     

    ARTICLE
      V

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

    INSURANCE
      AND INDEMNIFICATION

     

    5.1    Insurance
      to be Carried.

     

    
      	(a)  	
              Manager
                shall obtain and keep in full force and effect insurance on the Properties
                against such hazards as Owner and Manager shall deem appropriate,
                but in
                any event insurance sufficient to comply with the leases and the
                Ownership
                Agreements shall be maintained. All liability policies shall provide
                sufficient insurance satisfactory to both Owner and Manager and shall
                contain waivers of subrogation for the benefit of
                Manager.

            

    

     

    
      	(b)  	
              Manager
                shall obtain and keep in full force and effect, in accordance with
                the
                laws of the state in which each Property is located, employer’s liability
                insurance applicable to and covering all employees of Manager at
                the
                Properties and all persons engaged in the performance of any work
                required
                hereunder, and Manager shall furnish Owner certificates of insurers
                naming
                Owner as a co-insured and evidencing that such insurance is in effect.
                If
                any work under this Management Agreement is subcontracted as permitted
                herein, Manager shall include in each subcontract a provision that
                the
                subcontractor shall also furnish Owner with such a
                certificate.

            

    

     

    5.2    Cooperation
      with Insurers.
      Manager
      shall cooperate with and provide reasonable access to the Properties to
      representatives of insurance companies and insurance brokers or agents with
      respect to insurance which is in effect or for which application has been made.
      Manager shall use its best efforts to comply with all requirements of
      insurers.

     

    5.3    Accidents
      and Claims.
      Manager
      shall promptly investigate and shall report in detail to Owner all accidents,
      claims for damage relating to the ownership, operation or maintenance of the
      Properties, and any damage or destruction to the Properties and the estimated
      costs of repair thereof, and shall prepare for approval by Owner all reports
      required by an insurance company in connection with any such accident, claim,
      damage, or destruction. Such reports shall be given to Owner promptly and any
      report not so given within 10 days after the occurrence of any such accident,
      claim, damage or destruction shall be noted in the monthly report delivered
      to
      Owner pursuant to Section
      2.5(b).
      Manager
      is authorized to settle any claim against an insurance company arising out
      of
      any policy and, in connection with such claim, to execute proofs of loss and
      adjustments of loss and to collect and receipt for loss proceeds. 

     

    5.4    Indemnification.
      Manager
      shall hold Owner harmless from and indemnify and defend Owner against any and
      all claims or liability for any injury or damage to any person or property
      whatsoever for which Manager is responsible occurring in, on, or about the
      Properties, including, without limitation, the Improvements when such injury
      or
      damage shall be caused by the negligence of Manager, its agents, servants,
      or
      employees, except to the extent that Owner recovers insurance proceeds with
      respect to such matter. Owner will indemnify and hold Manager harmless against
      all liability for injury to persons and damage to property caused by Owner’s
      negligence and which did not result from the negligence of misconduct of
      Manager, except to the extent Manager recovers insurance proceeds with respect
      to such matter.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      VI

    

    TERM,
      TERMINATION

     

    6.1    Term.
      This
      Management Agreement shall commence on the date first above written and shall
      continue until terminated in accordance with the earliest to occur of the
      following:

     

    
      	(a)  	
              One
                year from the date of the commencement of the term hereof. However,
                this
                Management Agreement will be automatically extended for an additional
                one
                year period at the end of each year unless any party gives sixty
                (60) days
                written notice to the others of its intention to terminate this Management
                Agreement; or

            

    

     

    
      	(b)  	
              Immediately
                upon the occurrence of any of the
                following:

            

    

     

    (i)  A
      decree
      or order is rendered by a court having jurisdiction (A) adjudging Manager as
      bankrupt or insolvent, or (B) approving as properly filed a petition seeking
      reorganization, readjustment, arrangement, composition or similar relief for
      Manager under the federal bankruptcy laws or any similar applicable law or
      practice, or (C) appointing a receiver or liquidator or trustee or assignee
      in
      bankruptcy or insolvency of Manager or a substantial part of the property of
      Manager, or for the winding up or liquidation of its affairs, or

     

    (ii)  Manager
      (A) institutes proceedings to be adjudicated a voluntary bankrupt or an
      insolvent, (B) consents to the filing of a bankruptcy proceeding against it,
      (C)
      files a petition or answer or consent seeking reorganization, readjustment,
      arrangement, composition or relief under any similar applicable law or practice,
      (D) consents to the filing of any such petition, or to the appointment of a
      receiver or liquidator or trustee or assignee in bankruptcy or insolvency for
      it
      or for a substantial part of its property, (E) makes an assignment for the
      benefit of creditors, (F), is unable to or admits in writing its inability
      to
      pay its debts generally as they become due unless such inability shall be the
      fault of Owner, or (G) takes corporate or other action in furtherance of any
      of
      the aforesaid purposes.

     

    
      	 	
              (c)

            	
              Upon
                written notice from the Owner in the event that the Manager commits
                an act
                of gross negligence or willful misconduct in the performance of its
                duties
                hereunder.

            

    

     

    Upon
      termination, the obligations of the parties hereto shall cease, provided that
      Manager shall comply with the provisions hereof applicable in the event of
      termination and shall be entitled to receive all compensation which may be
      due
      Manager hereunder up to the date of such termination, and provided, further,
      that if this Management Agreement terminates pursuant to clauses (b) or (c)
      above, Owner shall have other remedies as may be available at law or in
      equity.

     

    6.2    Manager’s
      Obligations after Termination.
      Upon
      the termination of this Management Agreement, Manager shall have the following
      duties:

     

    
      	(a)  	
              Manager
                shall deliver to Owner, or its designee, all books and records with
                respect to the Properties.

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

       

    

    
      	(b)  	
              Manager
                shall transfer and assign to Owner, or its designee, all service
                contracts
                and personal property relating to or used in the operation and maintenance
                of the Properties, except personal property paid for and owned by
                Manager.
                Manager shall also, for a period of sixty (60) days immediately following
                the date of such termination, make itself available to consult with
                and
                advise Owner, or its designee, regarding the operation, maintenance
                and
                leasing of the Properties.

            

    

     

    
      	(c)  	
              Manager
                shall render to Owner an accounting of all funds of Owner in its
                possession and shall deliver to Owner a statement of Management Fees
                claimed to be due Manager and shall cause funds of Owner held by
                Manager
                relating to the Properties to be paid to Owner or its
                designee.

            

    

     

    ARTICLE
      VII

    

    MISCELLANEOUS

     

    7.1.   
        Notices.
      All
      notices, approvals, consents and other communications hereunder shall be in
      writing, and, except when receipt is required to start the running of a period
      of time, shall be deemed given when delivered in person or on the fifth day
      after its mailing by either party by registered or certified United States
      mail,
      postage prepaid and return receipt requested, to the other party, at the
      addresses set forth after their respect name below or at such different
      addresses as either party shall have theretofore advised the other party in
      writing in accordance with this Section
      7.1.

     

    
      	 	 	
               

            	
              Owner:
                

              
                Lightstone
                  Value Plus Real Estate Investment Trust II, Inc. 

                326
                  Third Street

                Lakewood,
                  New Jersey 08701

                Attn:
                  David Lichtenstein

                         
                  Chief Executive Officer

                 

                Lightstone
                  Value Plus REIT II LP

                326
                  Third Street

                Lakewood,
                  New Jersey 08701

                Attn:
                  David Lichtenstein

                

                With
                  a copy to:

                 

                Proskauer
                  Rose LLP

                1585
                  Broadway

                New
                  York, New York 10036

                Attention:
                  Peter M. Fass, Esq.

              

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    Manager:  

     

    Prime
      Retail Property Management, LLC

    326
      Third
      Street

    Lakewood,
      New Jersey 08701

    Attn:
      David Lichtenstein

     

    With
      a
      copy to:

     

    Proskauer
      Rose LLP

    1585
      Broadway

    New
      York,
      New York 10036

    Attention:
      Peter M. Fass, Esq.

    

    7.2.  
         Governing
      Law.
      This
      Management Agreement shall be governed by and construed in accordance with
      the
      laws of the State of New York.

     

    7.3.   
        Assignment.
      Without
      derogating from Section
      2.6
      hereof,
      this Management Agreement may not be assigned by the Manager, except to an
      Affiliate of the Manager, and then only upon the consent of the Owner and the
      approval of a majority of the Independent Directors. Any assignee of the Manager
      shall be bound hereunder to the same extent as the Manager. This Agreement
      shall
      not be assigned by either Owner without the written consent of the Manager,
      except to a corporation, association, trust or other organization which is
      a
      successor to such Owner. Such successor shall be bound hereunder to the same
      extent as such Owner. Notwithstanding anything to the contrary contained herein,
      the economic rights of the Manager hereunder, including the right to receive
      all
      compensation hereunder, may be sold, transferred or assigned by the Manager
      without the consent of the Owners.

     

    7.4.         
       Amendments.
      This
      Management Agreement may be amended only by an instrument in writing signed
      by
      the party against whom enforcement of the amendment is sought

     

    7.5.         
       No
      Waiver.
      Neither
      the failure nor any delay on the party of a party to exercise any right, remedy,
      power or privilege under this Management Agreement shall operate as a waiver
      thereof, nor shall any single or partial exercise of any right, remedy, power
      or
      privilege preclude any other or further exercise of the same or of any other
      right, remedy, power or privilege, nor shall any waiver of any right, remedy,
      power or privilege with respect to any occurrence be construed as a waiver
      of
      such right, remedy, power or privilege with respect to any other occurrences.
      No
      waiver shall be effective unless it is in writing and is signed by the party
      asserted to have granted such waiver.

     

    7.6.         
       Headings.
      The
      headings of the various subdivisions of this Management Agreement are for
      reference only and shall not define or limit any of the terms or provisions
      hereof.

     

    7.7.   
        Counterparts.
      This
      Management Agreement may be executed in two or more counterparts, each of which
      shall be deemed an original, and it shall not be necessary in making proof
      of
      this Management Agreement to produce or account for more than one such
      counterpart.

     

    7.8   
         Entire
      Agreement.
      This
      Management Agreement contains the entire agreement and understanding among
      the
      parties hereto with respect to the subject matter hereof and supersedes all
      prior and contemporaneous agreements, understandings, inducements and
      conditions, express or implied, oral or written, of any nature whatsoever with
      respect to the subject matter hereof.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    7.9.         
       Disputes.
      If
      there shall be a dispute between Owner and Manager relating to this Management
      Agreement resulting in litigation, the prevailing party in such litigation
      shall
      be entitled to recover from the other party to such litigation such amount
      as
      the court shall fix as reasonable attorneys’ fees.

     

    7.10.       
       Activities
      of Manager.
      The
      obligations of Manager pursuant to the terms and provisions of this Management
      Agreement shall not be construed to preclude Manager from engaging in other
      activities or business ventures, whether or not such other activities or
      ventures are in competition with the Owner or the business of
      Owner.

     

    7.11.
         Independent
      Contractor.
      Manager
      and Owner shall not be construed as joint venturers or partners of each other
      pursuant to this Management Agreement, and neither shall have the power to
      bind
      or obligate the other except as set forth herein. In all respects, the status
      of
      Manager to Owner under this Management Agreement is that of an independent
      contractor.

     

    [Signature
      page follows.]

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

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

    
      	 	 	 
	 	LIGHTSTONE
              VALUE
              PLUS REAL ESTATE INVESTMENT TRUST II, INC.
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              
Name:

	 	Title:

      	 	 	 
	 	LIGHTSTONE
              VALUE
              PLUS REIT II LP
	 
 	 
By:  	
              
Lightstone
                Value Plus Real Estate 

              Investment
                Trust II, Inc.,   

              its
                General Partner

               

               

            
	
            	By:  	
            
	 	
              
Name:

	 	Title: 

      	 	 	 
	 	PRIME
              RETAIL
              PROPERTY MANAGEMENT, LLC
	 
 	 
 	 
 
	
            	By:  	 
	 	
              
Name:

	 	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00146-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00146-of-00352.parquet"}]]