Document:

Exhibit 10.1

 

ADVISORY AGREEMENT

BETWEEN

LIGHTSTONE REAL ESTATE INCOME TRUST INC.

AND

LIGHTSTONE REAL ESTATE INCOME LLC

 

Dated as of [●], 2015

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	1.	DEFINITIONS	1
	 	 	 
	2.	APPOINTMENT	6
	 	 	 
	3.	DUTIES OF THE ADVISOR	6
	 	 	 
	4.	AUTHORITY OF ADVISOR	10
	 	 	 
	5.	FIDUCIARY RELATIONSHIP	10
	 	 	 
	6.	NO PARTNERSHIP OR JOINT VENTURE	10
	 	 	 
	7.	BANK ACCOUNTS	10
	 	 	 
	8.	RECORDS; ACCESS	10
	 	 	 
	9.	LIMITATIONS ON ACTIVITIES	10
	 	 	 
	10.	FEES	11
	 	 	 
	11.	EXPENSES	15
	 	 	 
	12.	OTHER SERVICES	16
	 	 	 
	13.	REIMBURSEMENTS	16
	 	 	 
	14.	OTHER ACTIVITIES OF THE ADVISOR	16
	 	 	 
	15.	THE LIGHTSTONE NAME	17
	 	 	 
	16.	TERM OF AGREEMENT	18
	 	 	 
	17.	TERMINATION BY THE PARTIES	18
	 	 	 
	18.	ASSIGNMENT TO AN AFFILIATE	18
	 	 	 
	19.	PAYMENTS TO AND DUTIES OF ADVISOR UPON TERMINATION	18
	 	 	 
	20.	INCORPORATION OF THE ARTICLES OF INCORPORATION	19
	 	 	 
	21.	INDEMNIFICATION BY THE COMPANY	19
	 	 	 
	22.	INDEMNIFICATION BY THE ADVISOR	20
	 	 	 
	23.	NOTICES	21

 

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	24.	MODIFICATION	22
	 	 	 
	25.	SEVERABILITY	22
	 	 	 
	26.	GOVERNING LAW	22
	 	 	 
	27.	ENTIRE AGREEMENT	22
	 	 	 
	28.	NO WAIVER	22
	 	 	 
	29.	PRONOUNS AND PLURALS	22
	 	 	 
	30.	HEADINGS	22
	 	 	 
	31.	EXECUTION IN COUNTERPARTS	22

 

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ADVISORY AGREEMENT

 

THIS ADVISORY AGREEMENT, dated as of [●],
2015 (this “Agreement”), is entered into between Lightstone Real Estate Income Trust Inc., a Maryland corporation
(the “Company”) and Lightstone Real Estate Income LLC, a Delaware limited liability company.

 

WITNESSETH

 

WHEREAS, the Company is a Maryland corporation
created in accordance with the Maryland General Corporation Law and intends to qualify as a REIT (as defined below);

 

WHEREAS, the Company desires to avail itself
of the experience, sources of information, advice, assistance and certain facilities of the Advisor (as defined below) 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 of the Company, all as provided herein; and

 

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

 

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

 

1.          DEFINITIONS.
As used in this Agreement, the following terms have the definitions set forth below:

 

“2%/25% Guidelines”
has the meaning set forth in Section 13.

 

“Acquisition Expenses”
has the meaning set forth in the Articles of Incorporation.

 

“Acquisition Fee”
means the fee payable to the Advisor or its Affiliates pursuant to Section 10(a).

 

“Advisor” means
Lightstone Real Estate Income LLC, a Delaware limited liability company, any successor advisor to the Company, or any Person to
which Lightstone Real Estate Income LLC or any successor advisor subcontracts all or substantially all its functions. Notwithstanding
the foregoing, a Person hired or retained by Lightstone Real Estate Income LLC to perform property management and related services
for the Company that is not hired or retained to perform substantially all the functions of Lightstone Real Estate Income LLC with
respect to the Company as a whole shall not be deemed to be an Advisor.

 

“Affiliate” or
“Affiliated” has the meaning set forth in the Articles of Incorporation.

 

“Agreement” has
the meaning set forth at the head of this Agreement, and such term shall include any amendment or supplement hereto from time to
time.

 

    	 

    	 

    

 

“Annual Subordinated Performance
Fee” means the fees payable to the Advisor or its assignees pursuant to Section 10(e).

 

“Articles of Incorporation”
means the charter of the Company, as amended or supplemented from time to time.

 

“Asset Management Fee”
means the fees payable to the Advisor pursuant to Section 10(d).

 

“Asset Sale” means
any transaction or series of transactions resulting in a liquidation or the sale of all or substantially all the Investments and
the distribution of the Net Sales Proceeds therefrom to the holders of Common Shares whereby: (a) the Company directly or
indirectly sells, grants, transfers, conveys or relinquishes its direct or indirect ownership of or interest in (i) any real estate
asset, including through any event with respect to any real estate asset that gives rise to a significant amount of insurance proceeds
or condemnation awards, (ii) any Joint Venture, (iii) any Real Estate-Related Loan or portion thereof (including all payments thereunder
or in satisfaction thereof other than regularly scheduled interest payments), including through any event with respect to any Real
Estate-Related Loan or portion thereof that gives rise to a significant amount of insurance proceeds or similar awards, or (iv)
any other Investment not previously described in this definition, or any portion thereof; or (b) any Joint Venture directly or
indirectly sells, grants, transfers, conveys or relinquishes its direct or indirect ownership of or interest in any Investment
described in this definition, or any portion thereof.

 

“Average Invested Assets”
has the meaning set forth in the Articles of Incorporation. For an equity interest owned in a Joint Venture, the calculation of
Average Invested Assets shall take into consideration the underlying Joint Venture’s aggregate book value for the equity
interest.

 

“Board of Directors”
or “Board” means the Board of Directors of the Company.

 

“Business Day”
means any day on which the New York Stock Exchange is open for trading.

 

“Bylaws” means
the bylaws of the Company, as amended from time to time.

 

“Cause” means
(i) fraud, criminal conduct, willful misconduct or illegal or grossly negligent breach of fiduciary duty by the Advisor, or (ii)
if any of the following events occur: (A) the Advisor shall breach any material provision of this Agreement, and after written
notice of such breach, shall not cure such default within thirty (30) days or have begun action within thirty (30) days to cure
the default which shall be completed with reasonable diligence; (B) the Advisor shall be adjudged bankrupt or insolvent by a court
of competent jurisdiction, or an order shall be made by a court of competent jurisdiction for the appointment of a receiver, liquidator,
or trustee of the Advisor, for all or substantially all its property by reason of the foregoing, or if a court of competent jurisdiction
approves any petition filed against the Advisor for reorganization, and such adjudication or order shall remain in force or unstayed
for a period of thirty (30) days; or (C) the Advisor shall institute proceedings for voluntary bankruptcy or shall file a petition
seeking reorganization under the federal bankruptcy laws, or for relief under any law for relief of debtors, or shall consent to
the appointment of a receiver for itself or for all or substantially all its property, or shall make a general assignment for the
benefit of its creditors, or shall admit in writing its inability to pay its debts, generally, as they become due.

 

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“Change of Control”
means a change of control of the Company of a nature that would be required to be reported in response to the disclosure requirements
of Schedule 14A of Regulation 14A promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
as enacted and in force on the date hereof, whether or not the Company is then subject to such reporting requirements; provided,
however, that, without limitation, a Change of Control shall be deemed to have occurred if: (i) any “person” (within
the meaning of Section 13(d) of the Exchange Act, as enacted and in force on the date hereof) is or becomes the “beneficial
owner” (as that term is defined in Rule 13d-3, as enacted and in force on the date hereof, under the Exchange Act) of securities
of the Company representing 9.8% or more of the combined voting power of the Company’s securities then outstanding; (ii)
there occurs a merger, consolidation or other reorganization of the Company which is not approved by the Board of Directors; (iii)
there occurs a Sale, exchange, transfer or other disposition of substantially all the assets of the Company to another Person,
which disposition is not approved by the Board of Directors; or (iv) there occurs a contested proxy solicitation of the Stockholders
that results in the contesting party electing candidates to a majority of the Board of Directors’ positions next up for election.

 

“Code” means the
Internal Revenue Code of 1986, as amended from time to time, or any successor statute thereto. Reference to any provision of the
Code shall mean such provision as in effect from time to time, as the same may be amended, and any successor provision thereto,
as interpreted by any applicable regulations as in effect from time to time.

 

“Common Shares”
means shares of the Company’s common stock, par value $0.01 per share.

 

“Company” has
the meaning set forth at the head of this Agreement.

 

“Competitive Real Estate Commission”
has the meaning set forth in the Articles of Incorporation.

 

“Contract Sales Price”
means the total consideration received by the Company for the Sale of an Investment.

 

“Cost of Assets”
means the amount funded by the Company for Investments, including expenses and any financing attributable to such Investments,
less any principal received by the Company for such Investments.

 

“Dealer Manager”
means the Person(s) selected by the Board of Directors to act as the dealer manager for an Offering.

 

“Director” means
a member of the Board of Directors.

 

“Disposition Fee”
means the fee payable to the Advisor or any of its Affiliates pursuant to Section 10(c).

 

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“Distributions”
has the meaning set forth in the Articles of Incorporation.

 

“Excess Amount”
has the meaning set forth in Section 13.

 

“Exchange Act”
has the meaning set forth in the definition of “Change of Control.”

 

“Funding Amount”
has the meaning set forth in the Articles of Incorporation.

 

“Good Reason”
means: (i) any failure to obtain a satisfactory agreement from any successor to the Company to assume and agree to perform obligations
under this Agreement; or (ii) any material breach of this Agreement of any nature whatsoever by the Company.

 

“Gross Proceeds”
has the meaning set forth in the Articles of Incorporation.

 

“include,” “includes”
and “including” shall be construed as if followed by the phrase “without limitation.”

 

“Indemnitee” has
the meaning set forth in Section 21(a).

 

“Independent Director”
has the meaning set forth in the Articles of Incorporation.

 

“Investment” has
the meaning set forth in the Articles of Incorporation.

 

“Investment Company Act”
has the meaning set forth in Section 3(w).

 

“Investment Liquidity Event”
means: (a) an Asset Sale; or (b) a Merger.

 

“Joint Venture”
means any joint venture or partnership or other similar arrangement in which the Company or any of its subsidiaries is a co-venturer,
member or partner, which is established to originate, acquire or hold Investments.

 

“Listing” means
the listing of the Common Shares or any other securities into or for which the Common Shares are converted or exchanged on a national
securities exchange, or the inclusion of the Common Shares for trading in the over-the-counter market.

 

“Loan” means any
indebtedness or obligation in respect of borrowed money or evidenced by a bond, note, debenture, deed of trust, letter of credit
or similar instrument, including any mortgage or mezzanine loan.

 

“Market Value”
means: (a) in the case of a Listing, the weighted average closing price per Common Share over the Measurement Period multiplied
by the number of Common Shares outstanding on the day trading first commences or commenced upon a Listing; (b) in the case of a
Merger, the value accorded to one Common Share in the applicable transaction documents governing the Merger multiplied by the number
of Common Shares outstanding immediately prior to the effective time of the Merger; and (c) in the case of an Asset Sale, the Net
Sales Proceeds distributed to the holders of Common Shares. Notwithstanding (a), if a definitive agreement relating to a Merger
or an Asset Sale shall be entered into after a Listing, but before the Measurement Period shall be completed, then Market Value
shall be determined according to (b) or (c), as applicable.

 

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“Measurement Period”
means the period beginning one hundred eighty (180) calendar days after a Listing, and continuing for a period of thirty (30) consecutive
trading days.

 

“Merger” means
any merger, reorganization, business combination, share exchange or acquisition by any Person or related group of Persons of beneficial
ownership of all or substantially all the Common Shares in one or more related transactions, or another similar transaction involving
the Company, pursuant to which the holders of Common Shares receive cash or the securities of another issuer that are listed on
a national securities exchange, as full or partial consideration for their Common Shares.

 

“NASAA REIT Guidelines”
means the Statement of Policy Regarding Real Estate Investment Trusts as revised and adopted by the North American Securities Administrators
Association on May 7, 2007, as the same may be amended from time to time.

 

“Net Income” has
the meaning set forth in the Articles of Incorporation.

 

“Net Investment”
means, with respect to any holder of Common Shares, $10.00 per Common Share, less a pro rata share of any proceeds received from
the Sale or refinancing of Investments.

 

“Net Sales Proceeds”
has the meaning set forth in the Articles of Incorporation.

 

“Notice” has the
meaning set forth in Section 23.

 

“Offering” means
a public offering of Shares pursuant to a Prospectus.

 

“Organization and Offering Expenses”
means all costs and expenses to be paid by the Company in connection with the formation of the Company and an Offering, including
(i) the Company’s legal, accounting, printing, mailing and filing fees, (ii) charges of the Company’s escrow agent,
(iii) reimbursements to the Dealer Manager and participating broker-dealers for due diligence expenses set forth on detailed and
itemized invoices, (iv) amounts to reimburse the Advisor for its portion of the salaries of the employees of its Affiliates who
provide services to the Advisor, and (v) other costs in connection with administrative oversight of such Offering and the marketing
process, such as preparing supplemental sales materials, holding educational conferences and attending retail seminars conducted
by the Dealer Manager or participating broker-dealers.

 

“Person” has the
meaning set forth in the Articles of Incorporation.

 

“Primary Offering”
means the portion of an Offering other than the offering of Common Shares pursuant to the Company’s distribution reinvestment
program.

 

“Prospectus” means
a final prospectus of the Company filed pursuant to Rule 424(b) of the Securities Act, as the same may be amended or supplemented
from time to time.

 

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“Real Estate-Related Loan”
means any investment in mortgage loans and other types of real estate-related debt financing, including mezzanine loans, bridge
loans, convertible mortgages, wraparound mortgage loans, construction mortgage loans, loans on leasehold interests and participations
in such loans, by the Company, directly, through one or more subsidiaries or through a Joint Venture.

 

“REIT” has the
meaning set forth in the Articles of Incorporation.

 

“Sale” has the
meaning set forth in the Articles of Incorporation.

 

“Securities Act”
means the Securities Act of 1933, as amended.

 

“Shares” has the
meaning set forth in the Articles of Incorporation.

 

“Sponsor” means
The Lightstone Group, LLC, a New Jersey limited liability company.

 

“Stockholder”
means a holder of record of the Shares, as maintained on the books and records of the Company or its transfer agent.

 

“Subordinated Fee upon Termination”
means the fee payable to the Advisor pursuant to Section 10(h).

 

“Subordinated Incentive Listing
Fee” means the fee payable to the Advisor pursuant to Section 10(g).

 

“Subordinated Participation
in Net Sales Proceeds” means the fee payable to the Advisor pursuant to Section 10(f).

 

“such as” shall
be construed as if followed by the phrase “without limitation.”

 

“Termination Date”
means the date of termination of this Agreement.

 

“Total Operating Expenses”
has the meaning set forth in the Articles of Incorporation. The definition of “Total Operating Expenses” set forth
above is intended to encompass only those expenses which are required to be treated as Total Operating Expenses under the NASAA
REIT Guidelines. As a result, and notwithstanding the definition set forth above, any expense of the Company which is not part
of Total Operating Expenses under the NASAA REIT Guidelines shall not be treated as part of Total Operating Expenses for purposes
hereof.

 

2.          APPOINTMENT.
The Company hereby appoints the Advisor to serve as its advisor to perform the services set forth herein on the terms and subject
to the conditions set forth in this Agreement and subject to the supervision of the Board, and the Advisor hereby accepts such
appointment.

 

3.          DUTIES
OF THE ADVISOR. The Advisor will use its reasonable best efforts to find, evaluate, present and recommend to the Company investment
opportunities consistent with the Company’s investment policies and objectives as adopted from time to time by the Board.
In its performance of this undertaking, subject to the supervision of the Board and consistent with the provisions of the Articles
of Incorporation and the Bylaws, the Advisor, either directly or indirectly, shall, among other duties:

 

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(a)          exercise
absolute discretion, subject to the Board’s review, in decisions to originate, acquire, retain or sell Investments; provided,
that the Advisor may originate or acquire on behalf of the Company any Investment with purchase price that is less than $15,000,000
without the prior approval of the Board (other than an Investment originated or acquired from the Advisor, a Director, the Sponsor
or their Affiliates, in which case the approval of the Independent Directors will be required) if and to the extent that:

 

(i)          the
proposed origination or acquisition would not, if consummated, violate or conflict with the Company’s investment objectives;

 

(ii)         the
proposed origination or acquisition would not, if consummated, violate the limitations on borrowing set forth in the Articles of
Incorporation; and

 

(iii)        the
consideration proposed to be paid for such Investment does not exceed the fair market value of such Investment, as determined by
a qualified independent valuer selected in good faith by the Advisor and acceptable to the Independent Directors;

 

(b)          provide
daily management for the Company and perform and supervise the various administrative functions necessary for the day-to-day management
of the operations of the Company;

 

(c)          investigate,
select and, on behalf of the Company, engage and conduct business with and supervise the performance of such Persons as the Advisor
deems necessary to the proper performance of its obligations hereunder (including consultants, accountants, correspondents, lenders,
technical advisors, attorneys, brokers, underwriters, corporate fiduciaries, escrow agents, depositaries, custodians, agents for
collection, insurers, insurance agents, banks, builders, developers, property owners, property managers, real estate management
companies, real estate operating companies, securities investment advisors, mortgagors, the registrar and the transfer agent and
any and all agents for any of the foregoing), including Affiliates of the Advisor and Persons acting in any other capacity deemed
by the Advisor necessary or desirable for the performance of any of the foregoing services (including entering into contracts in
the name of the Company with any of the foregoing);

 

(d)          consult
with the officers and Directors of the Company and assist the Directors in the formulation and implementation of the Company’s
financial policies, and, as necessary, furnish the Board with advice and recommendations with respect to the making of Investments
consistent with the investment objectives and policies of the Company and in connection with any borrowings proposed to be undertaken
by the Company;

 

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(e)          subject
to the provisions of Section 4, (i) present a continuing and suitable investment program to the Board that is consistent
with the Company’s investment policies and objectives; (ii) locate, analyze and select potential Investments; (iii) structure
and negotiate the terms and conditions of transactions pursuant to which originations, acquisitions and dispositions of Investments
will be made; (iv) research, identify, review and recommend originations, acquisitions and dispositions of Investments to the Board
and make Investments on behalf of the Company in compliance with the investment objectives and policies of the Company; (v) arrange
for financing and refinancing and make other changes in the asset or capital structure of, and dispose of, reinvest the proceeds
from the Sale of, or otherwise deal with, Investments; (vi) perform all operational functions for the maintenance and administration
of Investments, including, with respect to Real Estate-Related Loans, servicing; (vii) actively oversee and manage Investments
for purposes of meeting the Company’s investment objectives and reviewing and analyzing financial information for each of
the Investments and the overall portfolio; (viii) select Joint Venture partners, structure corresponding agreements and oversee
and monitor these relationships; (ix) oversee Affiliated and non-Affiliated Persons with whom the Advisor contracts to perform
certain of the services required to be performed under this Agreement; (x) manage accounting and other recordkeeping functions
for the Company, including generating an annual budget for the Company; (xi) recommend various liquidity events to the Board when
appropriate; and (xii) source and structure Real Estate-Related Loans (if the Company retains the servicing rights, the Advisor
or one of its Affiliates will service the Real Estate-Related Loan or select a third-party provider to do so);

 

(f)          upon
request, provide the Board with periodic reports regarding prospective Investments;

 

(g)          make
investments in, and dispositions of, Investments within the discretionary limits and authority as granted by the Board;

 

(h)          perform
a diligence review on each Investment prior to the closing thereof;

 

(i)          negotiate
on behalf of the Company with banks or other lenders for Loans to be made to the Company or any of its subsidiaries, and negotiate
with investment banking firms and broker-dealers on behalf of the Company or any of its subsidiaries, or negotiate private sales
of Common Shares or obtain Loans for the Company or any of its subsidiaries, but in no event in such a manner that the Advisor
shall be acting as broker-dealer or underwriter; provided, however, that any fees and costs payable to third parties
incurred by the Advisor in connection with the foregoing shall be the responsibility of the Company or any of its subsidiaries;

 

(j)          obtain
reports (which may be, but are not required to be, prepared by the Advisor or its Affiliates), where appropriate, concerning the
value of Investments or contemplated Investments of the Company;

 

(k)          from
time to time, or at any time reasonably requested by the Board, make reports to the Board of its performance of services to the
Company under this Agreement, including reports with respect to potential conflicts of interest involving the Advisor or any of
its Affiliates;

 

(l)          provide
the Company with all necessary cash management services;

 

(m)          deliver
to, or maintain on behalf of, the Company copies of all valuation reports;

 

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(n)          notify
the Board of all proposed material transactions before they are completed;

 

(o)          effect
any private placement of tenancy-in-common (TIC) or other interests in Investments as may be approved by the Board;

 

(p)          perform
investor relations and Stockholder communications functions for the Company;

 

(q)          render
such services as may be reasonably determined by the Board of Directors consistent with the terms and conditions herein;

 

(r)          maintain
the Company’s accounting and other records and assist the Company in preparing, reviewing and filing all reports and returns
required to be filed by it with the Securities and Exchange Commission, the Internal Revenue Service and other regulatory agencies;

 

(s)          do
all things reasonably necessary to assure its ability to render the services described in this Agreement;

 

(t)          make
decisions regarding marketing methods with respect to the initial public Offering, the termination or extension of the initial
public Offering, the initiation of a follow-on Offering, mergers and other Change of Control transactions and certain significant
press releases;

 

(u)          periodically
review each Investment to determine the optimal time to sell the Investment and generate a strong return;

 

(v)         administer
the Company’s share repurchase program and, in connection therewith, consider various factors in determining the amount of
liquid assets the Company should maintain, including but not limited to the Company’s receipt of proceeds from sales of additional
Common Shares, the Company’s cash flow from operations, available borrowing capacity under a line of credit, if any, the
Company’s receipt of proceeds from any asset sale, and the use of cash to fund repurchases;

 

(w)          continually
review the Company’s investment activity to attempt to ensure that the Company will not be regulated as an “investment
company” under the Investment Company Act of 1940, as amended (the “Investment Company Act”); and

 

(x)          continuously
monitor the Company’s capital needs and the amount of available liquid assets relative to the Company’s current business,
as well as the volume of repurchase requests relative to the sales of new Common Shares.

 

Notwithstanding the foregoing or anything
else that may be to the contrary in this Agreement, the Advisor may delegate any of the foregoing duties to any Person so long
as the Advisor or its Affiliate remains responsible for the performance of the duties set forth in this Section 3.

 

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4.           AUTHORITY
OF ADVISOR.

 

(a)          Pursuant
to the terms of this Agreement (including the restrictions included in this Section 4 and in Section 9), and subject
to the continuing and exclusive authority of the Board over the supervision of the Company, the Company, acting on the authority
of the Board of Directors, hereby delegates to the Advisor the authority to perform the services described in Section 3.

 

(b)          If
a transaction requires approval by the Independent Directors, the Advisor will deliver to the Independent Directors all documents
and other information reasonably required by them to evaluate properly the proposed transaction.

 

(c)          The
Board may, at any time upon the giving of Notice to the Advisor, modify or revoke the authority set forth in this Section 4;
provided, however, that such modification or revocation shall be effective upon receipt by the Advisor and shall
not be applicable to investment transactions to which the Advisor has committed the Company prior to the date of receipt by the
Advisor of such notification.

 

5.           FIDUCIARY
RELATIONSHIP. The Advisor, as a result of its relationship with the Company pursuant to this Agreement, has a fiduciary responsibility
and duty to the Company and the Stockholders.

 

6.           NO
PARTNERSHIP OR JOINT VENTURE. The parties to this Agreement 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.

 

7.           BANK
ACCOUNTS. The Advisor may establish and maintain one or more bank accounts in the name of the Company and may collect and deposit
into any such account or accounts, and disburse from any such account or accounts, any money on behalf of the Company, under such
terms and conditions as the Board may approve; provided, that no funds shall be commingled with the funds of the Advisor;
and, upon request, the Advisor shall render appropriate accountings of such collections and payments to the Board and to the auditors
of the Company.

 

8.           RECORDS;
ACCESS. The Advisor shall maintain appropriate records of all its activities hereunder and make such records available for
inspection by the Directors and by counsel, auditors and authorized agents of the Company, at any time and from time to time. The
Advisor shall at all reasonable times have access to the books and records of the Company.

 

9.           LIMITATIONS
ON ACTIVITIES. Notwithstanding anything herein to the contrary, the Advisor shall refrain from taking any action which, in
its sole judgment, or in the sole judgment of the Company, made in good faith, would (a) adversely affect the status of the Company
as a REIT, unless the Board has determined that REIT qualification is not in the best interests of the Company and its Stockholders,
(b) subject the Company to regulation under the Investment Company Act, or (c) violate any law, rule, regulation or statement of
policy of any governmental body or agency having jurisdiction over the Company or the Shares, or otherwise not be permitted by
the Articles of Incorporation or Bylaws, except if such action shall be ordered by the Board, in which case the Advisor shall notify
promptly the Board of the Advisor’s judgment of the potential impact of such action and shall refrain from taking such action
until it receives further clarification or instructions from the Board. In such event, the Advisor shall have no liability for
acting in accordance with the specific instructions of the Board so given.

 

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10.          FEES.

 

(a)          Acquisition
Fee. Subject to Section 10(b), the Company will pay to the Advisor or its Affiliates one percent (1%) of the Funding
Amount with respect to each Investment originated or acquired. The Company shall pay to the Advisor or its Affiliates the Acquisition
Fee promptly upon the closing of the Investment. If the Advisor is terminated without Cause pursuant to Section 17(a), the
Advisor or its Affiliates shall be entitled to an Acquisition Fee for any Investments originated or acquired after the Termination
Date for which a contract to originate or acquire any such Investment had been entered into at or prior to the Termination Date.
In the case of an Investment made through a Joint Venture, the Acquisition Fee shall be calculated based on the direct or indirect
ownership percentage in the Joint Venture held by the Company. For purposes of this Section 10(a), “ownership percentage”
means the percentage of capital stock, membership interests, partnership interests or other equity interests held by the Company,
without regard to classification of such equity interests. Notwithstanding anything to the contrary in this Section 10(a),
no Acquisition Fee shall be payable with respect to any transaction between the Company and the Sponsor, any affiliate of the Sponsor
or any program sponsored by the Sponsor.

 

(b)          Limitation
on Total Acquisition Fees and Acquisition Expenses; Reinvestments. In no event will the total of all Acquisition Fees and
Acquisition Expenses payable with respect to a particular Investment be unreasonable or exceed five percent (5%) of the Funding
Amount. In addition, subject to the final sentence of Section 10(a), if during the period ending two years after the close
of the initial Offering and any follow-on Offering, the Company sells an Investment and then reinvests in other Investments, the
Company will pay to the Advisor or its Affiliates, as applicable, any Acquisition Fees in respect of such other Investments, and
will reimburse the Advisor for any Acquisition Expenses in respect of such other Investments of the Advisor or any of its Affiliates;
provided, however, that in no event shall the total of all Acquisition Fees and Acquisition Expenses payable in respect
of such reinvestment be unreasonable or exceed five percent (5%) of the Funding Amount. Notwithstanding anything to the contrary
in this Section 10(b), a majority of the Directors (including a majority of the Independent Directors) not otherwise interested
in the transaction may approve fees and expenses in excess of the limits set forth in this Section 10(b) if they determine
the transaction to be commercially competitive, fair and reasonable to the Company.

 

    	11

    	 

    

 

(c)          Disposition
Fee. For substantial services in connection with the Sale of an Investment, the Company will pay the Advisor or any of
its Affiliates a Disposition Fee equal to up to one percent (1%) of the Contract Sales Price of each Investment sold; provided,
however, that the disposition fees paid to the Advisor, its Affiliates and non-Affiliates in respect of such Investment shall
not exceed the lesser of six percent (6%) of the Contract Sales Price or the Competitive Real Estate Commission in respect of such
Investment. The Independent Directors will determine whether the Advisor or its Affiliates have provided a substantial amount of
services to the Company in connection with the Sale of an Investment. A substantial amount of services in connection with the Sale
of an Investment includes the preparation by the Advisor or its Affiliates of an investment package for the Investment (including
an investment analysis, an asset description and other due diligence information) or such other substantial services performed
by the Advisor or its Affiliates in connection with a Sale. The Company will not pay a Disposition Fee upon the Sale of any securities
traded on a national securities exchange or included for trading in the over-the-counter market. The Company will not pay a Disposition
Fee upon the maturity, prepayment, workout, modification or extension of a debt Investment unless a corresponding fee is paid by
the borrower, in which case the Disposition Fee will be the lesser of: (i) 1% of the principal amount of the debt prior to such
transaction; and (ii) the amount of the fee paid by the borrower in connection with such transaction. If the Company takes ownership
of a property as a result of a workout or foreclosure of debt, the Company will pay a Disposition Fee upon the Sale of such property.

 

(d)          Asset
Management Fee. The Company shall pay the Advisor or its assignees a monthly fee equal to one-twelfth (1/12) of one percent
(1%) of the Cost of Assets, calculated and payable on the first Business Day of each month.

 

(e)          Annual
Subordinated Performance Fee. The Company shall pay the Advisor an Annual Subordinated Performance Fee calculated on the
basis of the Company’s annual return to holders of Common Shares, payable annually in arrears in any year in which holders
of Common Shares receive payment of an eight percent (8%) annual cumulative, pre-tax, non-compounded return on their respective
Net Investments, in an amount equal to fifteen percent (15%) of the amount in excess of such eight percent (8%) annual return;
provided, that the Annual Subordinated Performance Fee shall not exceed ten percent (10%) of the aggregate return for such
year; and provided, further, that the Annual Subordinated Performance Fee will not be paid unless holders of Common
Shares receive a return of their respective Net Investments. The Annual Subordinated Performance Fee shall be payable only from
Net Sales Proceeds.

 

(f)          Subordinated
Participation in Net Sales Proceeds. Upon an Investment Liquidity Event, the Company shall pay the Advisor, in one or more
payments solely out of Net Sales Proceeds, an amount equal to (i) fifteen percent (15%) of the amount, if any, by which (A) the
sum of (I) the Market Value, plus (II) total distributions attributable to Net Sales Proceeds paid through the date the Investment
Liquidity Event is consummated on Common Shares issued in all Offerings through such date, exceeds (B) the sum of (I) the Gross
Proceeds raised in all Offerings through the date the Investment Liquidity Event is consummated (less amounts paid on or prior
to such date to purchase or redeem any Common Shares purchased in an Offering pursuant to the Company’s share repurchase
program), plus (II) the minimum amount of cash that, if distributed to those Stockholders who purchased Common Shares in an Offering
on or prior to the date the Investment Liquidity Event is consummated, would have provided such Stockholders an eight percent (8%)
annual cumulative, pre-tax, non-compounded return on the Gross Proceeds raised in all Offerings through the date the Investment
Liquidity Event is consummated, measured for the period from inception through the date the Investment Liquidity Event is consummated,
less (ii) any prior payments to the Advisor of the Annual Subordinated Performance Fee. The Subordinated Participation in Net Sales
Proceeds will only be paid to the Advisor if this Agreement has not been terminated by the Company or the Advisor prior to the
date the Investment Liquidity Event is consummated.

 

    	12

    	 

    

 

(g)          Subordinated
Incentive Listing Fee. Upon a Listing, the Company shall pay the Advisor, in one or more payments solely out of Net Sales
Proceeds, an amount equal to (i) fifteen percent (15%) of the amount, if any, by which (A) the sum of (I) the Market Value, plus
(II) total distributions attributable to Net Sales Proceeds paid through the date of Listing on Common Shares issued in all Offerings
through such date, exceeds (B) the sum of (I) the Gross Proceeds raised in all Offerings through the date of Listing (less amounts
paid on or prior to such date to purchase or redeem any Common Shares purchased in an Offering pursuant to the Company’s
share repurchase program), plus (II) the minimum amount of cash that, if distributed to those Stockholders who purchased Common
Shares in an Offering on or prior to the date of Listing, would have provided such Stockholders an eight percent (8%) annual cumulative,
pre-tax, non-compounded return on the Gross Proceeds raised in all Offerings through the date of Listing, measured for the period
from inception through the date of Listing, less (ii) any prior payments to the Advisor of the Subordinated Participation in Net
Sales Proceeds or the Annual Subordinated Performance Fee, as applicable. The Subordinated Incentive Listing Fee will only be paid
to the Advisor if this Agreement has not been terminated by the Company or the Advisor prior to the date of Listing.

 

(h)          Subordinated
Fee upon Termination. Upon termination or non-renewal of this Agreement with or without Cause, the Company shall pay the
Advisor, in one or more payments solely out of Net Sales Proceeds, an amount equal to (i) fifteen percent (15%) of the amount,
if any, by which (A) the sum of (I) the estimated market value (determined by the Company in accordance with the Company’s
valuation policy) of the Investments on the Termination Date, less (II) any Loans secured by such Investments and any unsecured
Loans, plus or minus (III) any working capital surplus or deficit, as applicable, plus (IV) total distributions attributable to
Net Sales Proceeds paid through the Termination Date on Common Shares issued in all Offerings through the Termination Date, exceeds
(B) the sum of (I) the Gross Proceeds raised in all Offerings through the Termination Date (less amounts paid on or prior to the
Termination Date to purchase or redeem any Common Shares purchased in an Offering pursuant to the Company’s share repurchase
program), plus (II) the minimum amount of cash that, if distributed to those Stockholders who purchased Common Shares in an Offering
on or prior to the Termination Date, would have provided such Stockholders an eight percent (8%) annual cumulative, pre-tax, non-compounded
return on the Gross Proceeds raised in all Offerings through the Termination Date, measured for the period from inception through
the Termination Date, less (ii) any prior payments to the Advisor of the Subordinated Participation in Net Sales Proceeds or the
Annual Subordinated Performance Fee, as applicable. In addition, on the Termination Date, the Advisor may elect to defer its right
to receive a Subordinated Fee upon Termination until either a Listing or an Investment Liquidity Event occurs.

 

(i)          Coordination.

 

(i)          The
Advisor shall not be entitled to earn both the Subordinated Participation in Net Sales Proceeds and the Subordinated Incentive
Listing Fee. Any portion of the Subordinated Participation in Net Sales Proceeds that the Company shall pay to the Advisor prior
to a Listing shall offset any amount of the Subordinated Incentive Listing Fee otherwise payable by the Company to the Advisor.
If the Advisor receives the Subordinated Fee upon Termination, the Advisor shall not be entitled to any further payment of the
Subordinated Participation in Net Sales Proceeds or the Subordinated Incentive Listing Fee.

 

    	13

    	 

    

 

(ii)         Upon
a Listing, any previous payments by the Company to the Advisor of the Subordinated Participation in Net Sales Proceeds shall offset
any amount of the Subordinated Incentive Listing Fee otherwise payable by the Company to the Advisor, and the Advisor shall not
be entitled to any further payment of the Subordinated Participation in Net Sales Proceeds or the Subordinated Fee upon Termination.

 

(iii)        If
the Advisor elects to defer its right to receive a Subordinated Fee upon Termination and there is a subsequent Listing, then the
Advisor shall be entitled to receive a Subordinated Fee upon Termination, payable in one or more payments solely out of Net Sales
Proceeds, in an amount equal to (A) fifteen percent (15%) of the amount, if any, by which (I) the sum of (x) the Market Value,
plus (y) total distributions attributable to Net Sales Proceeds paid through the date of Listing on Common Shares issued in all
Offerings through the Termination Date, exceeds (II) the sum of (x) the Gross Proceeds raised in all Offerings through the Termination
Date (less amounts paid on or prior to the date of Listing to purchase or redeem any Common Shares purchased in an Offering on
or prior to the Termination Date pursuant to the Company’s share repurchase program), plus (y) the minimum amount of cash
that, if distributed to those Stockholders who purchased Common Shares in an Offering on or prior to the Termination Date, would
have provided such Stockholders an eight percent (8%) annual cumulative, pre-tax, non-compounded return on the Gross Proceeds raised
in all Offerings through the Termination Date, measured for the period from inception through the date of Listing, less (B) any
prior payments to the Advisor of the Subordinated Participation in Net Sales Proceeds, the Subordinated Incentive Listing Fee or
the Annual Subordinated Performance Fee, as applicable.

 

(iv)        If
the Advisor elects to defer its right to receive a Subordinated Fee upon Termination and there is a subsequent Investment Liquidity
Event, then the Advisor shall be entitled to receive a Subordinated Fee upon Termination, payable in one or more payments solely
out of Net Sales Proceeds, in an amount equal to (A) fifteen percent (15%) of the amount, if any, by which (I) the sum of (x) the
Market Value, plus (y) total distributions attributable to Net Sales Proceeds paid through the date the Investment Liquidity Event
is consummated on Common Shares issued in all Offerings through the Termination Date, exceeds (II) the sum of (x) the Gross Proceeds
raised in all Offerings through the Termination Date (less amounts paid on or prior to the date the Investment Liquidity Event
is consummated to purchase or redeem any Common Shares purchased in an Offering on or prior to the Termination Date pursuant to
the Company’s share repurchase program), plus (y) the minimum amount of cash that, if distributed to those Stockholders who
purchased Common Shares in an Offering on or prior to the Termination Date, would have provided such Stockholders an eight percent
(8%) annual cumulative, pre-tax, non-compounded return on the Gross Proceeds raised in all Offerings through the Termination Date,
measured for the period from inception through the date the Investment Liquidity Event is consummated, less (B) any prior payments
to the Advisor of the Subordinated Participation in Net Sales Proceeds or the Annual Subordinated Performance Fee, as applicable.

 

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11.          EXPENSES.

 

(a)          In
addition to the compensation paid to the Advisor pursuant to Section 10, the Company shall pay directly or reimburse
the Advisor for all the expenses paid or incurred by the Advisor or its Affiliates in connection with the services it provides
to the Company pursuant to this Agreement, including the following:

 

(i)          Organization
and Offering Expenses (including third-party due diligence fees related to a Primary Offering, as set forth in detailed and itemized
invoices);

 

(ii)         Acquisition
Expenses, subject to the limitations set forth in Section 10(b);

 

(iii)        the
actual cost of goods and services used by the Company and obtained from entities not Affiliated with the Advisor;

 

(iv)        interest
and other costs for Loans, including discounts, points and other similar fees;

 

(v)         taxes
and assessments on income of the Company or Investments;

 

(vi)        costs
associated with insurance required in connection with the business of the Company or by the Board;

 

(vii)       expenses
of managing and operating Investments owned by the Company, whether payable to an Affiliate of the Company or a non-Affiliated
Person;

 

(viii)      all
expenses in connection with payments to the Directors for attending meetings of the Board and Stockholders;

 

(ix)         expenses
associated with a Listing, if applicable, or with the issuance and distribution of Shares, such as selling commissions and fees,
advertising expenses, taxes, legal and accounting fees and Listing and registration fees;

 

(x)          expenses
connected with payments of Distributions;

 

(xi)         expenses
of organizing, revising, amending, converting, modifying or terminating the Company or any subsidiary thereof or the Articles of
Incorporation, Bylaws or governing documents of the Company or any subsidiary of the Company;

 

(xii)        expenses
of maintaining communications with Stockholders, including the cost of preparing, printing and mailing annual reports and other
Stockholder reports, proxy statements and other reports required by governmental entities;

 

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(xiii)       administrative
service expenses, including all costs and expenses incurred by the Advisor or its Affiliates in fulfilling its duties hereunder,
including reasonable salaries and wages, benefits and overhead of all employees directly involved in the performance of such services;
provided, however, that no reimbursement shall be made for (A) services for which the Advisor or its Affiliates are
entitled to compensation in the form of a separate fee or (B) the salaries and benefits of the Company’s named executive
officers; and

 

(xiv)      audit,
accounting and legal fees.

 

(b)          Commencing
twelve (12) months after the commencement of the initial Offering, the Company will reimburse the Advisor’s costs of providing
administrative services at the end of each fiscal quarter, subject to the limitation set forth in Section 13, and provided,
that the initial Offering has first broken escrow.

 

12.          OTHER
SERVICES. Should the Board request that the Advisor or any director, officer or employee thereof render services for the Company
other than as set forth in Section 3, such services shall be separately compensated at such customary rates and in such
customary amounts as are agreed upon by the Advisor and the Board, including a majority of the Independent Directors, subject to
the limitations contained in the Articles of Incorporation, and shall not be deemed to be services pursuant to the terms of this
Agreement.

 

13.          REIMBURSEMENTS.
The Company shall not reimburse the Advisor at the end of any fiscal quarter in which Total Operating Expenses incurred by the
Advisor for the four consecutive fiscal quarters then ended exceed (the “Excess Amount”) the greater of two
percent (2%) of Average Invested Assets and twenty-five percent (25%) of Net Income (the “2%/25% Guidelines”)
for such year. Within 60 days after the end of any fiscal quarter for which there is an Excess Amount which the Independent Directors
conclude was justified and reimbursable to the Advisor based on such unusual and non-recurring factors that the Independent Directors
deem sufficient, there shall be sent to the holders of Common Shares a written disclosure of such fact, together with an explanation
of the factors the Independent Directors considered in determining that such Excess Amount was justified. If the Independent Directors
do not determine that excess expenses are justified, the Advisor shall reimburse the Corporation at the end of the twelve-month
period the amount by which the expenses exceeded the 2%/25% Guidelines.

 

14.          OTHER
ACTIVITIES OF THE ADVISOR.

 

(a)          Except
as set forth in this Section 14, nothing herein contained shall prevent the Advisor or any of its Affiliates from engaging
in or earning fees from other activities, including the rendering of advice to other Persons (including other REITs) and the management
of other programs advised, sponsored or organized by the Sponsor or its Affiliates; nor shall this Agreement limit or restrict
the right of any director, officer, member, partner, employee or stockholder of the Advisor or any of its Affiliates to engage
in or earn fees from any other business or to render services of any kind to any other Person and earn fees for rendering such
services; provided, however, that the Advisor must devote sufficient resources to the Company’s business to
discharge its obligations to the Company under this Agreement; and provided, further, however, 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 such opportunity to the Company if (i) such opportunity is compatible
with the Company’s investment objectives and policies, (ii) such opportunity is of a character which could be taken by the
Company, and (iii) the Company has the financial resources to take advantage of such opportunity. The Advisor may, with respect
to any Investment in which the Company is a participant, also render advice and service to each and every other participant therein,
and earn fees for rendering such advice and service. Specifically, it is contemplated that the Company may enter into Joint Ventures
or other similar co-investment arrangements with certain Persons, and pursuant to the agreements governing such Joint Ventures
or arrangements, the Advisor may be engaged to provide advice and service to such Persons, in which case the Advisor will earn
fees for rendering such advice and service.

 

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(b)          If
an investment opportunity becomes available that is suitable for both the Company and a public or private entity with which the
Advisor or its Affiliates are Affiliated for which both entities have sufficient uninvested funds, and the requirements of the
second proviso in Section 14(a) have been satisfied, then the entity that has had uninvested funds for the longest period
of time will first be offered the investment opportunity. An investment opportunity will not be considered suitable for an entity
if the 2%/25% Guidelines could not be satisfied if the entity were to make the investment. In determining whether or not an investment
opportunity is suitable for more than one entity, the Board and the Advisor will examine such factors, among others, as the cash
requirements of each entity, the effect of the origination or acquisition both on diversification of each entity’s investments,
the policy of each entity relating to leverage, the anticipated cash flow of each entity, the income tax effects of the origination
or acquisition to each entity, the size of the investment, the amount of funds available to each program and the length of time
such funds have been available for investment. If a subsequent development, such as a delay in the closing of the origination or
acquisition, causes any such investment, in the opinion of the Board and the Advisor, to be more appropriate for an entity other
than the entity that committed to make the investment, then the Advisor may determine that the other entity Affiliated with the
Advisor or its Affiliates will make the investment. It shall be the duty of the Board, including the Independent Directors, to
ensure that the method used by the Advisor for the allocation of investment opportunities among two or more affiliated programs
seeking to originate or acquire similar types of Investments is applied fairly to the Company.

 

15.          THE
LIGHTSTONE NAME. The Advisor and its Affiliates have or may have a proprietary interest in the name “Lightstone.”
The Advisor hereby grants to the Company, to the extent of any proprietary interest the Advisor may have in the name “Lightstone,”
a non-transferable, non-assignable, non-exclusive, royalty-free right and license to use the name “Lightstone” during
the term of this Agreement. The Company agrees that the Advisor and its Affiliates will have the right to approve any use by the
Company of the name “Lightstone,” such approval not to be unreasonably withheld or delayed. Accordingly, and in recognition
of this right, if at any time the Company ceases to retain the Advisor or one of its Affiliates to perform advisory services for
the Company, the Company will, promptly after receipt of a written request from the Advisor, cease to conduct business under or
use the name “Lightstone” or any derivative thereof and the Company shall change its name and the names of any of its
subsidiaries to a name that does not contain the name “Lightstone” or any other word or words that might, in the reasonable
discretion of the Advisor, be susceptible of indication of some form of relationship between the Company and the Advisor or any
its Affiliates. At such time, the Company also will make any changes to any trademarks, servicemarks or other marks necessary to
remove any references to the word “Lightstone.” Consistent with the foregoing, it is specifically recognized that the
Advisor or one or more of its Affiliates has in the past and may in the future organize, sponsor or otherwise permit to exist other
investment vehicles (including vehicles for investment in real estate) and financial and service organizations having the name
“Lightstone” as a part of their name, all without the need for any consent (and without the right to object thereto)
by the Company. Neither the Advisor nor any of its Affiliates makes any representation or warranty, express or implied, with respect
to the name “Lightstone” licensed hereunder or the use thereof (including as to whether the use of the name “Lightstone”
will be free from infringement of the intellectual property rights of third parties). Notwithstanding the preceding, the Advisor
represents and warrants that it is not aware of any pending claims or litigation or of any claims threatened in writing regarding
the use or ownership of the name “Lightstone.”

 

    	17

    	 

    

 

16.          TERM
OF AGREEMENT. This Agreement shall continue in force for a period of one year from the date hereof. Thereafter, the term may
be renewed for an unlimited number of successive one-year terms upon mutual consent of the parties.

 

17.          TERMINATION
BY THE PARTIES. This Agreement may be terminated upon sixty (60) days’ prior written Notice (a) by the Independent Directors
of the Company or the Advisor, without Cause and without penalty, (b) by the Advisor for Good Reason, or (c) by the Advisor upon
a Change of Control; provided, that termination of this Agreement with Cause shall be upon forty-five (45) days’ prior
written Notice. The provisions of Sections 15 and 19 through 31 (inclusive) of this Agreement shall survive
any expiration or earlier termination of this Agreement.

 

18.          ASSIGNMENT
TO AN AFFILIATE. This Agreement may be assigned by the Advisor to an Affiliate with the approval of a majority of the Directors
(including a majority of the Independent Directors). The Advisor may assign any rights to receive fees or other payments under
this Agreement to any Person without obtaining the approval of the Directors. This Agreement shall not be assigned by the Company
without the consent of the Advisor, except in the case of an assignment by the Company to a Person which is a successor to all
the assets, rights and obligations of the Company, in which case such successor Person shall be bound hereunder and by the terms
of said assignment in the same manner as the Company is bound by this Agreement.

 

19.          PAYMENTS
TO AND DUTIES OF ADVISOR UPON TERMINATION.

 

(a)          Amounts
Owed. After the Termination Date, the Advisor shall be entitled to receive from the Company within thirty (30) days after
the effective date of such termination all amounts then accrued and owing to the Advisor, including all its interest in the Company’s
income, losses, distributions and capital by payment of an amount equal to the then-present fair market value of the Advisor’s
interest, subject to the 2%/25% Guidelines to the extent applicable.

 

(b)          Advisor’s
Duties. The Advisor shall promptly upon termination of this Agreement:

 

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(i)          pay
over to the Company all money collected and held for the account of the Company pursuant to this Agreement, after deducting any
accrued compensation and reimbursement for its expenses to which it is then entitled;

 

(ii)         deliver
to the Board a full accounting, including a statement showing all payments collected by it and a statement of all money held by
it, covering the period following the date of the last accounting furnished to the Board;

 

(iii)        deliver
to the Board all assets, including all Investments, and documents of the Company then in the custody of the Advisor; and

 

(iv)        cooperate
with the Company and the Board and take all reasonable steps requested to provide an orderly transition of the advisory function.

 

20.          INCORPORATION
OF THE ARTICLES OF INCORPORATION. To the extent that the Articles of Incorporation 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. To the extent that a provision of the Articles of Incorporation conflicts with a provision of this Agreement, the provision
of the Articles of Incorporation shall prevail.

 

21.          INDEMNIFICATION
BY THE COMPANY.

 

(a)          The
Company shall indemnify and hold harmless the Advisor and every Affiliate of the Advisor (collectively, the “Indemnitees,”
and each, an “Indemnitee”), from all liabilities, claims, damages or losses arising in the performance of their
duties hereunder, and related expenses, including reasonable attorneys’ fees, to the extent such liabilities, claims, damages
or losses and related expenses are not fully reimbursed by insurance, and to the extent that such indemnification would not be
inconsistent with the laws of the State of New York or the Articles of Incorporation. Notwithstanding the foregoing, the Company
shall not provide for indemnification of an Indemnitee for any loss or liability suffered by such Indemnitee, nor shall the Company
provide that an Indemnitee be held harmless for any loss or liability suffered by the Company, unless all the following conditions
are met:

 

(i)          the
Indemnitee has determined, in good faith, that the course of conduct that caused the loss or liability was in the best interest
of the Company;

 

(ii)         the
Indemnitee was acting on behalf of, or performing services for, the Company;

 

(iii)        such
liability or loss was not the result of negligence or misconduct by the Indemnitee; and

 

(iv)        such
indemnification or agreement to hold harmless is recoverable only out of the Company’s net assets and not from the Stockholders.

 

    	19

    	 

    

 

(b)          Notwithstanding
the foregoing, an Indemnitee shall not be indemnified by the Company for any loss, liability or expense arising from or out of
an alleged violation of federal or state securities laws by such Indemnitee unless one or more of the following conditions is met:

 

(i)          there
has been a successful adjudication on the merits of each count involving alleged securities law violations as to the Indemnitee;

 

(ii)         such
claims have been dismissed with prejudice on the merits by a court of competent jurisdiction as to the Indemnitee; or

 

(iii)        a
court of competent jurisdiction has approved a settlement of the claims against the Indemnitee and found that indemnification of
the settlement and the related costs should be made, and the court considering the request for indemnification has been advised
of the position of the Securities and Exchange Commission and of the published position of any state securities regulatory authority
of a jurisdiction in which securities of the Company were offered or sold as to indemnification for violations of securities laws.

 

(c)          In
addition, the advancement of the Company’s funds to an Indemnitee for reasonable legal expenses and other costs incurred
in advance of the final disposition of a proceeding for which indemnification is being sought is permissible only if all the following
conditions are satisfied:

 

(i)          the
proceeding relates to acts or omissions with respect to the performance of duties or services on behalf of the Company;

 

(ii)         the
Indemnitee provides the Company with a written affirmation of the Indemnitee’s good faith belief that the standard of conduct
necessary for indemnification has been met;

 

(iii)        the
legal proceeding is initiated by a third party who is not a Stockholder or, if the legal action is initiated by a Stockholder acting
in such Stockholder’s capacity as such, a court of competent jurisdiction approves such advancement; and

 

(iv)        the
Indemnitee provides the Company with a written undertaking to repay the advanced funds to the Company, together with the applicable
legal rate of interest thereon, if it is ultimately determined that such Indemnitee is not entitled to indemnification.

 

22.          INDEMNIFICATION
BY THE ADVISOR. The Advisor shall indemnify and hold harmless the Company from all liabilities, claims, damages or losses,
and related expenses, including reasonable attorneys’ fees, to the extent that such liabilities, claims, damages or losses
and related expenses are not fully reimbursed by insurance and are incurred by reason of the Advisor’s bad faith, fraud,
willful misfeasance, intentional misconduct, gross negligence or reckless disregard of its duties; provided, however,
that the Advisor shall not be held responsible for any action of the Board in following or declining to follow any advice or recommendation
given by the Advisor.

 

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23.          NOTICES.
Unless some other method of giving Notice is required by the Articles of Incorporation or the Bylaws, any notice, report, approval,
waiver or other communication (each, a “Notice”) required or permitted to be given hereunder shall be in writing
and shall be sent by hand, by courier or overnight carrier or by registered or certified mail to the addresses set forth below:

 

	 	To the Company:	 	Lightstone Real Estate Income Trust Inc.
	 	 	 	1985 Cedar Bridge Avenue
	 	 	 	Suite 1
	 	 	 	Lakewood, New Jersey 08701
	 	 	 	Attention:   Joseph E. Teichman, Esq.
	 	 	 	 General Counsel and Secretary
	 	 	 	 
	 	 	 	with copies to:
	 	 	 	 
	 	 	 	Proskauer Rose LLP
	 	 	 	Eleven Times Square
	 	 	 	New York, New York 10036
	 	 	 	Attention:   Peter M. Fass, Esq.
	 	 	 	 
	 	 	 	Proskauer Rose LLP
	 	 	 	Three First National Plaza
	 	 	 	70 West Madison, Suite 3800
	 	 	 	Chicago, IL 60602
	 	 	 	Attention:   Michael J. Choate. Esq.
	 	 	 	 
	 	To the Advisor:	 	Lightstone Real Estate Income LLC
	 	 	 	1985 Cedar Bridge Avenue
	 	 	 	Suite 1
	 	 	 	Lakewood, New Jersey 08701
	 	 	 	Attention:   Joseph E. Teichman, Esq.
	 	 	 	 General Counsel and Secretary
	 	 	 	 
	 	 	 	with copies to:
	 	 	 	 
	 	 	 	Proskauer Rose LLP
	 	 	 	Eleven Times Square
	 	 	 	New York, New York 10036
	 	 	 	Attention:   Peter M. Fass, Esq.
	 	 	 	 
	 	 	 	Proskauer Rose LLP
	 	 	 	Three First National Plaza
	 	 	 	70 West Madison, Suite 3800
	 	 	 	Chicago, IL 60602
	 	 	 	Attention:  Michael J. Choate. Esq.

 

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Either party may at any time give Notice in writing to the other
party of a change in its address for the purposes of this Section 23. Each Notice shall be deemed given and effective upon
actual receipt (or refusal of receipt).

 

24.         MODIFICATION.
This Agreement shall not be amended, supplemented, terminated or discharged, in whole or in part, except by an instrument in writing
signed by the parties hereto, or their respective successors or assignees.

 

25.         SEVERABILITY.
The provisions of this Agreement are independent of and severable from each other, and no provision shall be affected or rendered
invalid or unenforceable by virtue of the fact that for any reason any other or others of them may be invalid or unenforceable
in whole or in part.

 

26.         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, without regard to the principles of conflicts of laws thereof.

 

27.         ENTIRE
AGREEMENT. This Agreement contains the entire agreement and understanding between 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. The express terms hereof control
and supersede any course of performance or usage of the trade inconsistent with any of the terms hereof.

 

28.         NO
WAIVER. Neither the failure nor any delay on the part 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 occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted
to have granted such waiver.

 

29.         PRONOUNS
AND PLURALS. Whenever the context may require, any pronoun used in this Agreement shall include the corresponding masculine,
feminine or neuter forms, and the singular form of nouns, pronouns and verbs shall include the plural and vice versa.

 

30.         HEADINGS.
The titles of sections and subsections contained in this Agreement are for convenience only, and they neither form a part of this
Agreement nor are to be used in the construction or interpretation hereof.

 

31.         EXECUTION
IN COUNTERPARTS. This Agreement may be executed (including by facsimile transmission) with counterpart signature pages or in
any number of counterparts, each of which shall be deemed to be an original as against any party whose signature appears thereon,
and all of which shall together constitute one and the same instrument.

 

[Remainder of page intentionally left
blank]

 

    	22

    	 

    

 

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

 

	 	LIGHTSTONE REAL ESTATE INCOME TRUST INC.
	 	 
	 	By:	 
	 	 	Name: David Lichtenstein
	 	 	Title:  Chief Executive Officer
	 	 
	 	LIGHTSTONE REAL ESTATE INCOME LLC
	 	 
	 	By:	 
	 	 	Name: David Lichtenstein
	 	 	Title:  Chief Executive Officer

 

Lightstone Real Estate Income Trust Inc.
– Advisory AgreementExhibit 10.2

 

LIGHTSTONE REAL ESTATE INCOME TRUST
INC.

 

 

2015 STOCK INCENTIVE PLAN

 

(effective as of [   ],
2015)

 

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	Pages
	 	 
	ARTICLE I PURPOSE	1
	 	 
	ARTICLE II DEFINITIONS	1
	 	 
	ARTICLE III ADMINISTRATION	8
	 	 
	ARTICLE IV SHARE LIMITATION	11
	 	 
	ARTICLE V ELIGIBILITY
    AND GENERAL REQUIREMENTS FOR AWARDS	14
	 	 
	ARTICLE VI STOCK OPTIONS	15
	 	 
	ARTICLE VII STOCK APPRECIATION
    RIGHTS	17
	 	 
	ARTICLE VIII RESTRICTED
    STOCK	20
	 	 
	ARTICLE IX PERFORMANCE
    SHARES	23
	 	 
	ARTICLE X OTHER STOCK-BASED
    AWARDS	24
	 	 
	ARTICLE XI TERMINATION	26
	 	 
	ARTICLE XII CHANGE
    IN CONTROL PROVISIONS	27
	 	 
	ARTICLE XIII TERMINATION
    OR AMENDMENT OF PLAN	28
	 	 
	ARTICLE XIV UNFUNDED
    PLAN	30
	 	 
	ARTICLE XV GENERAL
    PROVISIONS	30
	 	 
	ARTICLE XVI EFFECTIVE
    DATE OF PLAN	34
	 	 
	ARTICLE XVII TERM OF
    PLAN	34
	 	 
	ARTICLE XVIII NAME
    OF PLAN	34
	 	 
	EXHIBIT A PERFORMANCE
    GOALS	A-1

 

    	i

    	 

    

 

LIGHTSTONE REAL ESTATE INCOME TRUST
INC.

 

 

2015 STOCK INCENTIVE PLAN

 

(effective as of [   ],
2015)

 

 

ARTICLE I

 

PURPOSE

 

The purpose of this
2015 Stock Incentive Plan is to enhance the profitability and value of the Company for the benefit of its stockholders by enabling
the Company to offer Participants stock-based incentives in the Company to attract, retain and reward such individuals and strengthen
the mutuality of interests between such individuals and the Company’s stockholders.

 

ARTICLE II

 

DEFINITIONS

 

For purposes of the
Plan, the following terms shall have the following meanings:

 

2.1        “Acquisition
Event” means a merger or consolidation in which the Company is not the surviving entity, any transaction that results
in the acquisition of all or substantially all the outstanding Common Stock by a single Person or by a group of Persons acting
in concert, or the sale or Transfer of all or substantially all the Company’s assets. The occurrence of an Acquisition Event
shall be determined by the Committee in its sole discretion.

 

2.2        “Affiliate”
means each of the following: (a) Lightstone Real Estate Income LLC; (b) any Subsidiary; (c) any Parent; (d) any corporation, trade
or business (including, without limitation, a partnership or limited liability company) that is directly or indirectly controlled
50% or more (whether by ownership of stock, assets or an equivalent ownership interest or voting interest) by the Company; (e)
any corporation, trade or business (including, without limitation, a partnership or limited liability company) that directly or
indirectly controls 50% or more (whether by ownership of stock, assets or an equivalent ownership interest or voting interest)
of the Company; and (f) any other entity in which the Company or any of its Affiliates has a material equity interest and that
is designated as an “Affiliate” by resolution of the Committee.

 

2.3        “Award”
means any award under the Plan of any Stock Option, Stock Appreciation Right, Restricted Stock, Performance Share or Other Stock-Based
Award. All Awards shall be evidenced by, confirmed by, and subject to the terms of, a written or electronic agreement executed
by the Company and the Participant. Any reference herein to an agreement in writing shall be deemed to include an electronic writing
to the extent permitted by applicable law.

 

    	 

    	 

    

 

2.4        “Board”
means the Board of Directors of the Company.

 

2.5        “Cause”
means with respect to a Participant’s Termination of Employment or Termination of Consultancy, the following: (a) in the
case where there is no employment agreement, consulting agreement, change in control agreement or similar agreement in effect between
the Company or an Affiliate and the Participant at the time of the grant of the Award (or where there is such an agreement but
it does not define “cause” (or words of like import)), termination due to: (i) a Participant’s conviction of,
or plea of guilty or nolo contendere to, a felony; (ii) perpetration by a Participant of an illegal act, dishonesty or fraud that
could cause significant economic injury to the Company; (iii) a Participant’s insubordination, refusal to perform his or
her duties or responsibilities for any reason other than illness or incapacity or materially unsatisfactory performance of his
or her duties for the Company or an Affiliate; (iv) continuing willful and deliberate failure by the Participant to perform the
Participant’s duties in any material respect; provided, that the Participant is given notice and an opportunity to
effectuate a cure as determined by the Committee; or (v) a Participant’s willful misconduct with regard to the Company that
could have a material adverse effect on the Company; or (b) in the case where there is an employment agreement, consulting agreement,
change in control agreement or similar agreement in effect between the Company or an Affiliate and the Participant at the time
of the grant of the Award that defines “cause” (or words of like import), “cause” as defined under such
agreement; provided, however, that with regard to any agreement under which the definition of “cause”
only applies on occurrence of a change in control, such definition of “cause” shall not apply until a change in control
actually takes place and then only with regard to a termination thereafter. With respect to a Participant’s Termination of
Directorship, “cause” means an act or failure to act that constitutes cause for removal of a director under applicable
Maryland law.

 

2.6        “Change
in Control” has the meaning set forth in Section 12.2.

 

2.7        “Change
in Control Price” has the meaning set forth in Section 12.1(b).

 

2.8        “Code”
means the Internal Revenue Code of 1986, as amended. Any reference to any section of the Code also shall be a reference to any
successor provision and any Treasury Regulation promulgated thereunder.

 

2.9        “Committee”
means the Board, or a committee or subcommittee of the Board appointed from time to time by the Board to administer the Plan. Any
such committee or subcommittee may consist of two or more non-employee directors, each of whom is intended to be (i) to the extent
required by Rule 16b-3 promulgated under Section 16(b) of the Exchange Act, a “non-employee director” as defined in
Rule 16b-3, (ii) to the extent required by Section 162(m) of the Code, an “outside director” as defined in Section
162(m) of the Code, and (iii) an “independent director” as defined under any applicable securities exchange rules;
provided, that if for any reason such committee or subcommittee does not meet the requirements of Rule 16b-3 or Section
162(m) of the Code, such noncompliance shall not affect the validity of Awards, grants, interpretations or other actions of such
committee or subcommittee.

 

    	2

    	 

    

 

2.10       “Common
Stock” means the common stock, $0.01 par value per share, of the Company.

 

2.11       “Company”
means Lightstone Real Estate Income Trust Inc., a Maryland corporation, and its successors by operation of law.

 

2.12       “Consultant”
means any natural person who, directly or indirectly, provides bona fide consulting or advisory services to the Company or any
of its Affiliates pursuant to a written agreement, which are not in connection with the offer and sale of securities in a capital-raising
transaction, and do not, directly or indirectly, promote or maintain a market for the Company’s or its Affiliates’
securities.

 

2.13       “Detrimental
Activity” means:

 

(a)        disclosing,
divulging, furnishing or making available to anyone at any time, except as necessary in the furtherance of Participant’s
responsibilities to the Company or any of its Affiliates, either during or subsequent to Participant’s service relationship
with the Company or any of its Affiliates, any knowledge or information with respect to confidential or proprietary information,
methods, processes, plans or materials of the Company or any of its Affiliates, or with respect to any other confidential or proprietary
aspects of the business of the Company or any of its Affiliate, acquired by the Participant at any time prior to the Participant’s
Termination;

 

(b)        any
activity while employed or performing services that results, or if known could reasonably be expected to result, in the Participant’s
Termination that is classified by the Company as a termination for Cause;

 

(c)        (i)
directly or indirectly soliciting, enticing or inducing any employee of the Company or of any of its Affiliates to be employed
by a Person that is, directly or indirectly, in competition with the business or activities of the Company or any of its Affiliates;
(ii) directly or indirectly approaching any such employee for these purposes; (iii) authorizing or knowingly approving the taking
of any such action by a third party on behalf of any such Person, or assisting any such Person in taking such action; or (iv) directly
or indirectly soliciting, raiding, enticing or inducing any Person (other than the U.S. Government or its agencies) that is, or
at any time from and after the date of grant of the Award was, a customer of the Company or any of its Affiliates to become a customer
of the Participant or a third party for the same or similar products or services that it purchased from the Company or any of its
Affiliates, or approaching any customer of the Company or any of its Affiliates for such purpose, or authorizing or knowingly approving
the taking of any action by a third party for such purpose;

 

(d)        the
Participant’s Disparagement, or inducement of others to do so, of the Company or any of its Affiliates or their past and
present officers, directors, employees or products;

 

(e)        the
Participant’s owning, managing, controlling, participating in, consulting with, rendering services for, or in any manner
engaging in, any business that, directly or indirectly, is competitive with the business conducted by the Company or any of its
Affiliates within any metropolitan area in which the Company or any of its Affiliates engages or has definitive plans to engage
in such business, or the rendering of services to such business if such business is otherwise prejudicial to or in conflict with
the interests of the Company or any of its Affiliates; or

 

    	3

    	 

    

 

(f)        a
material breach of any agreement between the Participant and the Company or any of its Affiliates (including, without limitation,
any employment agreement or noncompetition or nonsolicitation or confidentiality agreement).

 

Unless otherwise determined by the Committee at grant, Detrimental
Activity shall not be deemed to occur after the end of the one-year period following the Participant’s Termination.

 

For purposes of clauses (a), (c), (e) and (f) above, the Chief
Executive Officer of the Company has the authority to provide the Participant with written authorization to engage in the activities
contemplated thereby and no other individual shall have authority to provide the Participant with such authorization. If it is
determined by a court of competent jurisdiction that any provision in the Plan in respect of Detrimental Activities is excessive
in duration or scope or otherwise is unenforceable, then such provision may be modified or supplemented by the court to render
it enforceable to the maximum extent permitted by law.

 

2.14       “Disability”
means with respect to a Participant’s Termination, a permanent and total disability as defined in Section 22(e)(3) of the
Code. A Disability shall only be deemed to occur at the time of the determination by the Committee of the Disability. Notwithstanding
the foregoing, with respect to any payment pursuant to a Section 409A Covered Award that is triggered upon a Disability, Disability
shall mean that a Participant is disabled under Section 409A(a)(2)(C)(i) or (ii) of the Code

 

2.15       “Disparagement”
means making comments or statements to the press, the Company’s or its Affiliates’ employees, consultants or any individual
or entity with whom the Company or its Affiliates has a business relationship that could reasonably be expected to adversely affect
in any manner: (a) the conduct of the business of the Company or its Affiliates (including, without limitation, any products or
business plans or prospects); or (b) the business reputation of the Company or its Affiliates, or any of their products, or their
past or present officers, directors or employees.

 

2.16       “Effective
Date” means the effective date of the Plan as defined in Article XVI.

 

2.17       “Eligible
Employee” means an employee of the Company or of an Affiliate. The term “Eligible Employee” also includes
an officer of the Company or of an Affiliate, regardless of whether such officer is an employee of the Company or of such Affiliate.

 

2.18       “Exchange
Act” means the Securities Exchange Act of 1934, as amended, and all rules and regulations promulgated thereunder.
Any references to any section of the Exchange Act shall also be a reference to any successor provision.

 

2.19       “Exercisable
Awards” has the meaning set forth in Section 4.2(d).

 

    	4

    	 

    

 

2.20       “Fair
Market Value” means, on any date (i) if the Common Stock is listed on a national securities exchange or a national
market system, the closing sales price on such exchange or over such system on such date or, in the absence of reported sales on
such date, the closing sales price on the immediately preceding date on which sales were reported, or (ii) if the Common Stock
is not listed on a national securities exchange, the mean between the bid and offered prices as quoted by the applicable interdealer
quotation system; provided, that if the Common Stock is not quoted on such interdealer quotation system or it is determined
that the fair market value is not properly reflected by such quotations, Fair Market Value will be determined by such other method
as the Committee determines in good faith to be reasonable and in compliance with Section 409A of the Code or Section 422 of the
Code, as applicable. For purposes of the grant of any Award, the applicable date shall be the trading day on which the Award is
granted, or if such grant date is not a trading day, the trading day immediately prior to the date on which the Award is granted.
For purposes of the exercise of any Award the applicable date shall be the date a notice of exercise is received by the Committee
(or its designee) or, if not a day on which the applicable market is open, the next day that it is open.

 

2.21       “Family
Member” means “family member” as defined in Rule 701 under the Securities Act or, following the filing
of a Form S-8 pursuant to the Securities Act with respect to the Plan, as defined in Section A.1.(5) of the general instructions
of Form S-8, as may be amended from time to time.

 

2.22       “Incentive
Stock Option” means any Stock Option awarded to an Eligible Employee of the Company, its Subsidiaries and its Parent
(if any) under the Plan intended to be and designated as an “Incentive Stock Option” within the meaning of Section
422 of the Code.

 

2.23       “include,”
“includes” and “including” shall be construed as if followed by the phrase
“without limitation.”

 

2.24       “Limited
Stock Appreciation Right” has the meaning set forth in Section 7.5.

 

2.25       “Non-Employee
Director” means a non-employee director of the Company as defined in Rule 16b-3.

 

2.26       “Non-Qualified
Stock Option” means any Stock Option awarded under the Plan that is not an Incentive Stock Option.

 

2.27       “Other
Extraordinary Event” has the meaning set forth in Section 4.2(b).

 

2.28       “Other
Stock-Based Award” means an Award under Article X of the Plan that is valued in whole or in part by reference
to, or is payable in or otherwise based on, Common Stock, including, without limitation, a restricted stock unit or an Award valued
by reference to an Affiliate.

 

2.29       “Parent”
means any parent corporation of the Company within the meaning of Section 424(e) of the Code.

 

2.30       “Participant”
means an Eligible Employee, Non-Employee Director or Consultant to whom an Award has been granted pursuant to the Plan.

 

2.31       “Performance
Goals” has the meaning set forth on Exhibit A.

 

    	5

    	 

    

 

2.32       “Performance
Period” means the duration of the period during which receipt of an Award is subject to the satisfaction of performance
criteria, such period as determined by the Committee in its sole discretion.

 

2.33       “Performance
Share” means an Award made pursuant to Article IX of the Plan of the right to receive Common Stock at the
end of a specified Performance Period.

 

2.34       “Person”
means any individual, corporation, partnership, limited liability company, firm, joint venture, association, joint-stock company,
trust, incorporated organization, governmental or regulatory or other entity.

 

2.35       “Plan”
means this Lightstone Real Estate Income Trust Inc. 2015 Stock Incentive Plan, as amended from time to time.

 

2.36      
“Reference Stock Option” has the meaning set forth in Section 7.1.

 

2.37       “Registration
Date” means the first date after the Effective Date on which (a) the Company sells its Common Stock in a bona fide
underwriting pursuant to a registration statement under the Securities Act or (b) any class of common equity securities of the
Company is required to be registered under Section 12 of the Exchange Act.

 

2.38       “Restricted
Stock” means a share of Common Stock issued under the Plan that is subject to restrictions under Article VIII.

 

2.39       “Restriction
Period” has the meaning set forth in Section 8.3(a)(i).

 

2.40       “Retirement”
means a voluntary Termination of Employment or Termination of Consultancy at or after age 65 or such earlier date after age 55
as may be approved by the Committee, in its sole discretion, with respect to such Participant at the time of grant, or thereafter,
except that Retirement shall not include any involuntary Termination of Employment or Termination of Consultancy by the Company
or an Affiliate for any reason with or without Cause. With respect to a Participant’s Termination of Directorship, Retirement
means the failure to stand for reelection or the failure to be reelected on or after the date that a Participant has attained age
65 or, with the consent of the Board, before age 65 but after age 55.

 

2.41       “Rule
16b-3” means Rule 16b-3 under Section 16(b) of the Exchange Act as then in effect or any successor provision.

 

2.42       “Section
162(m) of the Code” means the exception for performance-based compensation under Section 162(m) of the Code and any
applicable Treasury regulations thereunder.

 

2.43       “Section
409A Covered Award” has the meaning set forth in Section 15.14.

 

2.44       “Section
409A of the Code” means the nonqualified deferred compensation rules under Section 409A of the Code and any applicable
Treasury regulations thereunder.

 

2.45       “Section
4.2 Event” has the meaning set forth in Section 4.2(b).

 

    	6

    	 

    

 

2.46       “Securities
Act” means the Securities Act of 1933, as amended, and all rules and regulations promulgated thereunder. Any reference
to any section of the Securities Act shall also be a reference to any successor provision.

 

2.47       “Stock
Appreciation Right” means the right pursuant to an Award granted under Article VII. A Tandem Stock Appreciation
Right shall mean the right to surrender to the Company all (or a portion) of a Stock Option in exchange for a number of shares
of Common Stock equal to the difference between (a) the Fair Market Value on the date such Stock Option (or such portion thereof)
is surrendered, of the Common Stock covered by such Stock Option (or such portion thereof), and (b) the aggregate exercise price
of such Stock Option (or such portion thereof). A Non-Tandem Stock Appreciation Right shall mean the right to receive a number
of shares of Common Stock equal to the difference between (i) the Fair Market Value of a share of Common Stock on the date such
right is exercised, and (ii) the aggregate exercise price of such right, otherwise than on surrender of a Stock Option.

 

2.48       “Stock
Option” or “Option” means any option to purchase shares of Common Stock granted to Eligible
Employees, Non-Employee Directors or Consultants pursuant to Article VI.

 

2.49       “Subsidiary”
means any subsidiary corporation of the Company within the meaning of Section 424(f) of the Code.

 

2.50       “Tandem
Stock Appreciation Right” has the meaning set forth in Section 7.1.

 

2.51       “Ten
Percent Stockholder” means a Person owning stock possessing more than 10% of the total combined voting power of all
classes of stock of the Company, its Subsidiaries or its Parent.

 

2.52       “Termination”
means a Termination of Consultancy, Termination of Directorship or Termination of Employment, as applicable.

 

2.53       “Termination
of Consultancy” means: (a) that the Consultant is no longer acting as a consultant to the Company or an Affiliate;
or (b) when an entity that is retaining a Participant as a Consultant ceases to be an Affiliate unless the Participant otherwise
is, or thereupon becomes, a Consultant to the Company or another Affiliate at the time the entity ceases to be an Affiliate. If
a Consultant becomes an Eligible Employee or a Non-Employee Director upon the termination of his or her consultancy, unless otherwise
determined by the Committee, in its sole discretion, no Termination of Consultancy shall be deemed to occur until such time as
such Consultant is no longer a Consultant, an Eligible Employee or a Non-Employee Director. Notwithstanding the foregoing, the
Committee may, in its sole discretion, otherwise define Termination of Consultancy in the Award agreement or, if no rights of a
Participant are reduced, may otherwise define Termination of Consultancy thereafter.

 

2.54       “Termination
of Directorship” means that the Non-Employee Director has ceased to be a director of the Company; except that if
a Non-Employee Director becomes an Eligible Employee or a Consultant upon the termination of his or her directorship, his or her
ceasing to be a director of the Company shall not be treated as a Termination of Directorship unless and until the Participant
has a Termination of Employment or Termination of Consultancy, as the case may be.

 

    	7

    	 

    

 

2.55       “Termination
of Employment” means: (a) a termination of employment (for reasons other than a military or personal leave of absence
granted by the Company) of a Participant from the Company and its Affiliates; or (b) when an entity that is employing a Participant
ceases to be an Affiliate, unless the Participant otherwise is, or thereupon becomes, employed by the Company or another Affiliate
at the time the entity ceases to be an Affiliate. If an Eligible Employee becomes a Consultant or a Non-Employee Director upon
the termination of his or her employment, unless otherwise determined by the Committee, in its sole discretion, no Termination
of Employment shall be deemed to occur until such time as such Eligible Employee is no longer an Eligible Employee, a Consultant
or a Non-Employee Director. Notwithstanding the foregoing, the Committee may, in its sole discretion, otherwise define Termination
of Employment in the Award agreement or, if no rights of a Participant are reduced, may otherwise define Termination of Employment
thereafter.

 

2.56       “Transfer”
means: (a) when used as a noun, any direct or indirect transfer, sale, assignment, pledge, hypothecation, encumbrance or other
disposition (including the issuance of equity in a Person), whether for value or no value and whether voluntary or involuntary
(including by operation of law), and (b) when used as a verb, to directly or indirectly transfer, sell, assign, pledge, encumber,
charge, hypothecate or otherwise dispose of (including the issuance of equity in a Person) whether for value or for no value and
whether voluntarily or involuntarily (including by operation of law). “Transferable,” “Transferee” and
“Transferred” shall have correlative meanings.

 

2.57       “Transition
Period” means the “reliance period” under Treasury Regulation Section 1.162-27(f)(2), which ends on the
earliest to occur of the following: (a) the date of the first annual meeting of stockholders of the Company at which directors
are to be elected that occurs after December 31, 2015; (b) the date the Plan is materially amended for purposes of Treasury Regulation
Section 1.162-27(h)(1)(iii); or (c) the date all shares of Common Stock available for issuance under the Plan have been allocated.

 

ARTICLE
III

 

ADMINISTRATION

 

3.1          The
Committee.  The Plan shall be administered and interpreted by the Committee.

 

3.2          Grants
of Awards. The Committee shall have full authority to grant, pursuant to the terms of the Plan, to Eligible Employees,
Consultants and Non-Employee Directors: (1) Stock Options; (2) Stock Appreciation Rights; (3) Restricted Stock; (4) Performance
Shares; and (5) Other Stock-Based Awards. In particular, the Committee shall have the authority:

 

(a)          to
select the Eligible Employees, Consultants and Non-Employee Directors to whom Awards may from time to time be granted hereunder;

 

    	8

    	 

    

 

(b)          to
determine whether and to what extent Awards are to be granted hereunder to one or more Eligible Employees, Consultants or Non-Employee
Directors;

 

(c)          to
determine, in accordance with the terms of the Plan, the number of shares of Common Stock to be covered by each Award granted hereunder;

 

(d)          to
determine the terms and conditions, not inconsistent with the terms of the Plan, of any Award granted hereunder (including, but
not limited to, the exercise or purchase price (if any), any restriction or limitation, any vesting schedule or acceleration thereof,
or any forfeiture restrictions or waiver thereof, regarding any Award and the shares of Common Stock relating thereto, based on
such factors, if any, as the Committee shall determine, in its sole discretion);

 

(e)          to
determine whether, to what extent and under what circumstances grants of Options and other Awards under the Plan are to operate
on a tandem basis or in conjunction with or apart from other awards made by the Company outside of the Plan;

 

(f)           to
determine whether and under what circumstances a Stock Option may be settled in Common Stock or Restricted Stock under Section
6.3(h);

 

(g)          to
determine whether, to what extent and under what circumstances Common Stock and other amounts payable with respect to an Award
under the Plan shall be deferred either automatically or at the election of the Participant, in any case, in a manner intended
to comply with Section 409A of the Code;

 

(h)          to
determine whether a Stock Option is an Incentive Stock Option or Non-Qualified Stock Option;

 

(i)           to
determine whether to require a Participant, as a condition of the granting of any Award, to not sell or otherwise dispose of shares
acquired pursuant to an Award for a period of time as determined by the Committee, in its sole discretion, following the date of
such Award; and

 

(j)           generally,
to exercise such powers and to perform such acts as the Committee deems necessary or expedient to promote the best interests of
the Company that are not in conflict with the provisions of the Plan.

 

3.3          Guidelines.
Subject to Article XIII, the Committee shall, in its sole discretion, have the authority to adopt, alter and repeal such
administrative rules, guidelines and practices governing the Plan and perform all acts, including the delegation of its responsibilities
(to the extent permitted by applicable law and applicable securities exchange rules), as it shall, from time to time, deem advisable;
to construe and interpret the terms and provisions of the Plan and any Award issued under the Plan (and any agreements relating
thereto); and to otherwise supervise the administration of the Plan. The Committee may, in its sole discretion, correct any defect,
supply any omission or reconcile any inconsistency in the Plan or in any agreement relating thereto in the manner and to the extent
it shall deem necessary to effectuate the purpose and intent of the Plan; provided, that with regard to any provision of
the Plan or any agreement relating thereto that is intended to comply with Section 162(m) of the Code, any such action by the Committee
shall be permitted only to the extent such action would be permitted under Section 162(m) of the Code. The Committee may, in its
sole discretion, adopt special guidelines and provisions for Persons who are residing in or employed in, or subject to the taxes
of, any domestic or foreign jurisdictions to comply with applicable tax and securities laws of such domestic or foreign jurisdictions.
To the extent applicable, the Plan is intended to comply with the applicable requirements of Rule 16b-3 and with respect to Awards
intended to be “performance-based,” the applicable provisions of Section 162(m) of the Code, and the Plan shall be
limited, construed and interpreted in a manner so as to comply therewith.

 

    	9

    	 

    

 

3.4          Decisions
Final. Any decision, interpretation or other action made or taken in good faith by or at the direction of the Company,
the Board or the Committee (or any of its members) arising out of or in connection with the Plan shall be within the absolute discretion
of all and each of them, as the case may be, and shall be final, binding and conclusive on the Company and all employees and Participants
and their respective heirs, executors, administrators, successors and assigns.

 

3.5          Procedures.
If the Committee is appointed, the Board shall designate one of the members of the Committee as chairman and the Committee shall
hold meetings, subject to the By-Laws of the Company, at such times and places as it shall deem advisable, including, without limitation,
by telephone conference or by written consent to the extent permitted by applicable law. A majority of the Committee members shall
constitute a quorum. All determinations of the Committee shall be made by a majority of its members. Any decision or determination
reduced to writing and signed by all the Committee members in accordance with the By-Laws of the Company shall be as fully effective
as if it had been made by a vote at a meeting duly called and held. The Committee shall keep minutes of its meetings and shall
make such rules and regulations for the conduct of its business as it shall deem advisable.

 

3.6          Designation
of Consultants/Liability.

 

(a)          The
Committee may, in its sole discretion, designate employees of the Company and professional advisors to assist the Committee in
the administration of the Plan and (to the extent permitted by applicable law and applicable securities exchange rules) may grant
authority to officers to grant Awards or execute agreements or other documents on behalf of the Committee.

 

(b)          The
Committee may, in its sole discretion, employ such legal counsel, consultants and agents as it may deem desirable for the administration
of the Plan and may rely upon any opinion received from any such counsel or consultant and any computation received from any such
consultant or agent. Expenses incurred by the Committee or the Board in the engagement of any such counsel, consultant or agent
shall be paid by the Company. The Committee, its members and any Person designated pursuant to Section 3.6(a) above shall
not be liable for any action or determination made in good faith with respect to the Plan. To the maximum extent permitted by applicable
law, no officer of the Company or member or former member of the Committee or of the Board shall be liable for any action or determination
made in good faith with respect to the Plan or any Award granted under it.

 

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3.7          Indemnification.
To the maximum extent permitted by applicable law and the Certificate of Incorporation and By-Laws of the Company and to the extent
not covered by insurance directly insuring such individual, each officer or employee of the Company or any Affiliate and member
or former member of the Committee or the Board shall be indemnified and held harmless by the Company against any cost or expense
(including reasonable fees of counsel reasonably acceptable to the Committee) or liability (including any sum paid in settlement
of a claim with the approval of the Committee), and advanced amounts necessary to pay the foregoing at the earliest time and to
the fullest extent permitted, arising out of any act or omission to act in connection with the administration of the Plan, except
to the extent arising out of such officer’s, employee’s, member’s or former member’s fraud or bad faith.
Such indemnification shall be in addition to any rights of indemnification the officers, employees, directors or members or former
officers, directors or members may have under applicable law or under the Certificate of Incorporation or By-Laws of the Company
or any Affiliate. Notwithstanding anything else herein, this indemnification will not apply to the actions or determinations made
by an individual with regard to Awards granted to him or her under the Plan.

 

ARTICLE IV

 

SHARE LIMITATION

 

4.1          Shares.

 

(a)          General
Limitations. The aggregate number of shares of Common Stock that may be issued or used for reference purposes or with respect
to which Awards may be granted under the Plan shall not exceed five percent (5%) of the shares of Common Stock outstanding on a
fully diluted basis at any time; provided, that any increase following the Effective Date in the number of shares of Common
Stock that may be issued or used for reference purposes or with respect to which Awards may be granted under the Plan shall become
effective upon the registration of such shares of Common Stock under the Securities Act (in any event subject to any increase or
decrease pursuant to Section 4.2), which may be either authorized and unissued Common Stock or Common Stock held in or acquired
for the treasury of the Company or both. If any Exercisable Award granted under the Plan expires, terminates or is canceled for
any reason without having been exercised in full, the number of shares of Common Stock underlying any such unexercised Exercisable
Award shall again be available for the purpose of Awards under the Plan. If any shares of Restricted Stock, Performance Shares
or Other Stock-Based Awards that are not Exercisable Awards, denominated in shares of Common Stock, granted under the Plan are
forfeited for any reason, the number of forfeited shares of Restricted Stock, Performance Shares or such Other Stock-Based Awards
shall again be available for the purposes of Awards under the Plan, as provided in this Section 4.1(a). If a Tandem Stock
Appreciation Right or a Limited Stock Appreciation Right is granted in tandem with an Option, such grant shall only apply once
against the maximum number of shares of Common Stock that may be issued under the Plan. Notwithstanding anything herein to the
contrary, any share of Common Stock that again becomes available for grant pursuant to this Section 4.1(a) shall be added
back as one share of Common Stock to the maximum aggregate limit. The number of shares of Common Stock available for the purpose
of Awards under the Plan shall be reduced by (i) the total number of Stock Options or Stock Appreciation Rights exercised, regardless
of whether any of the shares of Common Stock underlying such Awards are not actually issued to the Participant as the result of
a net settlement, and (ii) any shares of Common Stock used to pay any exercise price or tax withholding obligation with respect
to any Award. In addition, the Company may not use the cash proceeds it receives from Stock Option exercises to repurchase shares
of Common Stock on the open market for reuse under the Plan.

 

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(b)          Individual
Participant Limitations.

 

(i)        The
maximum number of shares of Common Stock subject to any Award of Stock Options, Stock Appreciation Rights or shares of Restricted
Stock for which the grant of such Award or the lapse of the relevant Restriction Period is subject to the attainment of Performance
Goals in accordance with Section 8.3(a)(ii), which may be granted under the Plan during any fiscal year of the Company
to each Eligible Employee or Consultant shall be 750,000 shares per type of Award (which shall be subject to any further increase
or decrease pursuant to Section 4.2); provided, that the maximum number of shares of Common Stock for all types of
Awards does not exceed 1,500,000 (which shall be subject to any further increase or decrease pursuant to Section 4.2) during
any fiscal year of the Company. If a Tandem Stock Appreciation Right is granted or a Limited Stock Appreciation Right is granted
in tandem with a Stock Option, it shall apply against the Eligible Employee’s or Consultant’s individual share limitations
for both Stock Appreciation Rights and Stock Options.

 

(ii)       The
maximum number of shares of Common Stock subject to any Award of Stock Options (other than Incentive Stock Options), Stock Appreciation
Rights or Other Stock-Based Awards that may be granted under the Plan during any fiscal year of the Company to each Non-Employee
Director shall be 750,000 shares per type of Award (which shall be subject to any further increase or decrease pursuant to Section
4.2); provided, that the maximum number of shares of Common Stock for all types of Awards does not exceed 1,500,000
(which shall be subject to any further increase or decrease pursuant to Section 4.2) during any fiscal year of the Company.
If a Tandem Stock Appreciation Right is granted or a Limited Stock Appreciation Right is granted in tandem with a Stock Option,
it shall apply against the Non-Employee Director’s individual share limitations for both Stock Appreciation Rights and Stock
Options.

 

(iii)      There
are no annual individual Eligible Employee or Consultant share limitations on Restricted Stock for which the grant of such Award
or the lapse of the relevant Restriction Period is not subject to attainment of Performance Goals in accordance with Section
8.3(a)(ii).

 

(iv)      The
maximum value at grant of Performance Shares that may be granted under the Plan with respect to any fiscal year of the Company
to each Eligible Employee or Consultant shall be $5,000,000. Each Performance Share shall be referenced to one share of Common
Stock and shall be charged against the available shares under the Plan at the time the unit value measurement is converted to a
referenced number of shares of Common Stock in accordance with Section 9.1.

 

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(v)       The
individual Participant limitations set forth in this Section 4.1(b) shall not apply prior to the Registration Date
and, following the Registration Date, this Section 4.1(b) shall not apply until the expiration of the Transition Period.

 

4.2          Changes.

 

(a)          The
existence of the Plan and the Awards granted hereunder shall not affect in any way the right or power of the Board or the stockholders
of the Company to make or authorize (i) any adjustment, recapitalization, reorganization or other change in the Company’s
capital structure or its business, (ii) any merger or consolidation of the Company or any Affiliate, (iii) any issuance of bonds,
debentures, preferred or prior preference stock ahead of or affecting the Common Stock, (iv) the dissolution or liquidation of
the Company or any Affiliate, (v) any sale or Transfer of all or part of the assets or business of the Company or any Affiliate,
(vi) any Section 4.2 Event, or (vii) any other corporate act or proceeding.

 

(b)          Subject
to the provisions of Section 4.2(d), if there shall occur any such change in the capital structure of the Company by reason
of any stock split, reverse stock split, stock dividend, subdivision, combination or reclassification of shares that may be issued
under the Plan, any recapitalization, any merger, any consolidation, any spin off, any reorganization or any partial or complete
liquidation, or any other corporate transaction or event having an effect similar to any of the foregoing (a “Section
4.2 Event”), then (i) the aggregate number and kind of shares that thereafter may be issued under the Plan, (ii) the
number and kind of shares or other property (including cash) to be issued upon exercise of an outstanding Award or under other
Awards granted under the Plan, (iii) the purchase price thereof, and (iv) the individual Participant limitations set forth in Section
4.1(b) (other than those based on cash limitations) shall be appropriately adjusted. In addition, subject to Section 4.2(d),
if there shall occur any change in the capital structure or the business of the Company that is not a Section 4.2 Event (an “Other
Extraordinary Event”), including by reason of any extraordinary dividend (whether cash or stock), any conversion, any
adjustment, any issuance of any class of securities convertible or exercisable into, or exercisable for, any class of stock, or
any sale or Transfer of all or substantially all the Company’s assets or business, then the Committee, in its sole discretion,
may adjust any Award and make such other adjustments to the Plan. Any adjustment pursuant to this Section 4.2 shall be consistent
with the applicable Section 4.2 Event or the applicable Other Extraordinary Event, as the case may be, and in such manner as the
Committee may, in its sole discretion, deem appropriate and equitable to prevent substantial dilution or enlargement of the rights
granted to, or available for, Participants under the Plan. Any such adjustment determined by the Committee shall be final, binding
and conclusive on the Company and all Participants and their respective heirs, executors, administrators, successors and permitted
assigns. Except as expressly provided in this Section 4.2 or in the applicable Award agreement, a Participant shall have
no rights by reason of any Section 4.2 Event or any Other Extraordinary Event.

 

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(c)          Fractional
shares of Common Stock resulting from any adjustment in Awards pursuant to Section 4.2(a) or Section 4.2(b) shall
be aggregated until, and eliminated at, the time of exercise by rounding-down for fractions less than one-half and rounding-up
for fractions equal to or greater than one-half. No cash settlements shall be made with respect to fractional shares eliminated
by rounding. Notice of any adjustment shall be given by the Committee to each Participant whose Award has been adjusted and such
adjustment (whether or not such notice is given) shall be effective and binding for all purposes of the Plan.

 

(d)          In
the event of an Acquisition Event, the Committee may, in its sole discretion, terminate all outstanding and unexercised Stock Options
or Stock Appreciation Rights or any Other Stock Based Award that provides for a Participant elected exercise (“Exercisable
Awards”) effective as of the date of the Acquisition Event, by delivering notice of termination to each Participant at
least 20 days prior to the date of consummation of the Acquisition Event, in which case during the period from the date on which
such notice of termination is delivered to the consummation of the Acquisition Event, each such Participant shall have the right
to exercise his or her Exercisable Awards that are then outstanding to the extent vested as of the date on which such notice of
termination is delivered (or, at the discretion of the Committee, without regard to any limitations on exercisability otherwise
contained in the Award agreements), but any such exercise shall be contingent on the occurrence of the Acquisition Event; and provided,
that if the Acquisition Event does not take place within a specified period after giving such notice for any reason whatsoever,
the notice and exercise pursuant thereto shall be null and void. If the Acquisition Event does take place after giving such notice,
an Exercisable Award not exercised prior to the date of the consummation of the Acquisition Event shall be forfeited simultaneously
with the consummation of the Acquisition Event. For the avoidance of doubt, in the event of an Acquisition Event, the Committee
may, in its sole discretion, terminate any Exercisable Award for which the exercise price is equal to or exceeds the Fair Market
Value without payment of consideration therefor.

 

If an Acquisition Event occurs but the Committee does not terminate
the outstanding Exercisable Awards pursuant to this Section 4.2(d), then the applicable provisions of Section 4.2(b)
and Article XII shall apply.

 

4.3          Minimum
Purchase Price. Notwithstanding any provision of the Plan to the contrary, if authorized but previously unissued shares
of Common Stock are issued under the Plan, such shares shall not be issued for a consideration that is less than as permitted under
applicable law.

 

ARTICLE V

 

ELIGIBILITY AND GENERAL
REQUIREMENTS FOR AWARDS

 

5.1          General
Eligibility. All Eligible Employees, Consultants, Non-Employee Directors and prospective employees and consultants of the
Company and its Affiliates are eligible to be granted Awards, subject to the terms and conditions of the Plan. Eligibility for
the grant of Awards and actual participation in the Plan shall be determined by the Committee in its sole discretion. Notwithstanding
anything herein to the contrary, no Award under which a Participant may receive shares of Common Stock may be granted under the
Plan to an Eligible Employee or Consultant of any Affiliate if such shares of Common Stock do not constitute “service recipient
stock” for purposes of Section 409A of the Code with respect to such Eligible Employee or Consultant unless such Award is
structured in a manner intended to comply with, or be exempt from, Section 409A of the Code.

 

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5.2          Incentive
Stock Options. Notwithstanding anything herein to the contrary, only Eligible Employees of the Company, its Subsidiaries
and its Parent (if any) are eligible to be granted Incentive Stock Options under the Plan. Eligibility for the grant of an Incentive
Stock Option and actual participation in the Plan shall be determined by the Committee in its sole discretion.

 

5.3          General
Requirement. The vesting and exercise of Awards granted to a prospective employee or consultant are conditioned upon such
individual actually becoming an Eligible Employee or Consultant.

 

ARTICLE VI

 

STOCK OPTIONS

 

6.1          Options.
Each Stock Option granted under the Plan shall be one of two types: (a) an Incentive Stock Option; or (b) a Non-Qualified Stock
Option.

 

6.2          Grants.
The Committee shall, in its sole discretion, have the authority to grant to any Eligible Employee (subject to Section 5.2)
Incentive Stock Options, Non-Qualified Stock Options, or both types of Stock Options. The Committee shall, in its sole discretion,
have the authority to grant any Consultant or Non-Employee Director Non-Qualified Stock Options. To the extent that any Stock Option
does not qualify as an Incentive Stock Option (whether because of its provisions or the time or manner of its exercise or otherwise),
such Stock Option or the portion thereof that does not qualify shall constitute a separate Non-Qualified Stock Option.

 

6.3          Terms
of Options. Options granted under the Plan shall be subject to the following terms and conditions and shall be in such
form and contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the Committee, in its sole
discretion, shall deem desirable:

 

(a)          Exercise
Price. The exercise price per share of Common Stock subject to a Stock Option shall be determined by the Committee at the time
of grant; provided, that the per share exercise price of a Stock Option shall not be less than 100% (or, in the case of
an Incentive Stock Option granted to a Ten Percent Stockholder, 110%) of the Fair Market Value of the Common Stock at the time
of grant.

 

(b)          Stock
Option Term. The term of each Stock Option shall be fixed by the Committee; provided, that no Stock Option shall be
exercisable more than 10 years after the date the Option is granted; and provided, further, that the term of an Incentive
Stock Option granted to a Ten Percent Stockholder shall not exceed five years.

 

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(c)          Exercisability.
Stock Options shall be exercisable at such time or times and subject to such terms and conditions as shall be determined by the
Committee at grant. If the Committee provides, in its discretion, that any Stock Option is exercisable subject to certain limitations
(including, without limitation, that such Stock Option is exercisable only in installments or within certain time periods or upon
attainment of certain financial results), the Committee may waive such limitations on the exercisability at any time at or after
grant in whole or in part (including, without limitation, waiver of the installment exercise provisions or acceleration of the
time at which such Stock Option may be exercised), based on such factors, if any, as the Committee shall determine, in its sole
discretion. Unless otherwise determined by the Committee at grant, the Option agreement shall provide that (i) if the Participant
engages in Detrimental Activity prior to any exercise of the Stock Option, all Stock Options held by the Participant shall thereupon
terminate and expire, (ii) as a condition of the exercise of a Stock Option, the Participant shall be required to certify (or shall
be deemed to have certified) at the time of exercise in a manner acceptable to the Company that the Participant is in compliance
with the terms and conditions of the Plan and that the Participant has not engaged in, and does not intend to engage in, any Detrimental
Activity, and (iii) if the Participant engages in Detrimental Activity during the one-year period commencing on the later of the
date the Stock Option is exercised or the date of the Participant’s Termination, the Company shall be entitled to recover
from the Participant at any time within one year after such date, and the Participant shall pay over to the Company, an amount
equal to any gain realized as a result of the exercise (whether at the time of exercise or thereafter).

 

(d)          Method
of Exercise. Subject to whatever installment exercise and waiting period provisions apply under Section 6.3(c) above,
to the extent vested, Stock Options may be exercised in whole or in part at any time during the Option term, by giving written
notice of exercise to the Company specifying the number of shares of Common Stock to be purchased. Such notice shall be accompanied
by payment in full of the purchase price as follows: (i) in cash or by check, bank draft or money order payable to the order of
the Company; (ii) solely to the extent permitted by applicable law, if the Common Stock is traded on a national securities exchange
or quoted on a national quotation system sponsored by a national securities association, and the Committee authorizes, through
a procedure whereby the Participant delivers irrevocable instructions to a broker reasonably acceptable to the Committee to deliver
promptly to the Company an amount equal to the purchase price; or (iii) on such other terms and conditions as may be acceptable
to the Committee (including, without limitation, the relinquishment of Stock Options or by payment in full or in part in the form
of Common Stock owned by the Participant based on the Fair Market Value of the Common Stock on the payment date as determined by
the Committee, in its sole discretion). No shares of Common Stock shall be issued until payment therefor, as provided herein, has
been made or provided for.

 

(e)          Non-Transferability
of Options. No Stock Option shall be Transferable by the Participant otherwise than by will or by the laws of descent and distribution,
and all Stock Options shall be exercisable, during the Participant’s lifetime, only by the Participant. Notwithstanding the
foregoing, the Committee may determine, in its sole discretion, at the time of grant or thereafter that a Non-Qualified Stock Option
that is otherwise not Transferable pursuant to this Section is Transferable to a Family Member in whole or in part and in such
circumstances, and under such conditions, as determined by the Committee, in its sole discretion. A Non-Qualified Stock Option
that is Transferred to a Family Member pursuant to the preceding sentence (i) may not be subsequently Transferred otherwise than
by will or by the laws of descent and distribution and (ii) remains subject to the terms of the Plan and the applicable Award agreement.
Any shares of Common Stock acquired upon the exercise of a Non-Qualified Stock Option by a permissible Transferee of a Non-Qualified
Stock Option or a permissible Transferee pursuant to a Transfer after the exercise of the Non-Qualified Stock Option shall be subject
to the terms of the Plan and the applicable Award agreement.

 

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(f)          Incentive
Stock Option Limitations. To the extent that the aggregate Fair Market Value (determined as of the time of grant) of the Common
Stock with respect to which Incentive Stock Options are exercisable for the first time by an Eligible Employee during any calendar
year under the Plan or any other stock option plan of the Company, any Subsidiary or any Parent exceeds $100,000, such Options
shall be treated as Non-Qualified Stock Options. Should any provision of the Plan not be necessary in order for the Stock Options
to qualify as Incentive Stock Options, or should any additional provisions be required, the Committee may, in its sole discretion,
amend the Plan accordingly, without the necessity of obtaining the approval of the stockholders of the Company.

 

(g)          Form,
Modification, Extension and Renewal of Stock Options. Subject to the terms and conditions and within the limitations of the
Plan, Stock Options shall be evidenced by such form of agreement or grant as is approved by the Committee, and the Committee may,
in its sole discretion (i) modify, extend or renew outstanding Stock Options granted under the Plan (provided, that the
rights of a Participant are not reduced without his or her consent; and provided, further, that such action does
not extend the Stock Option beyond its stated term or subject the Stock Options to Section 409A of the Code), and (ii) accept
the surrender of outstanding Stock Options (up to the extent not theretofore exercised) and authorize the granting of new Stock
Options in substitution therefor (to the extent not theretofore exercised). Notwithstanding the foregoing, an outstanding Option
may not be modified to reduce the exercise price thereof nor may a new Exercisable Award at a lower price be substituted for a
surrendered Option (other than adjustments or substitutions in accordance with Section 4.2), unless such action is approved
by the stockholders of the Company.

 

(h)          Early
Exercise. The Committee may provide that a Stock Option include a provision whereby the Participant may elect at any time before
the Participant’s Termination to exercise the Stock Option as to any part of or all the shares of Common Stock subject to
the Stock Option prior to the full vesting of the Stock Option and such shares shall be subject to the provisions of Article
VI and treated as Restricted Stock. Any unvested shares of Common Stock so purchased may be subject to a repurchase option
in favor of the Company or to any other restriction the Committee determines to be appropriate.

 

(i)           Other
Terms and Conditions. Stock Options may contain such other provisions, which shall not be inconsistent with any of the terms
of the Plan, as the Committee shall, in its sole discretion, deem appropriate.

 

ARTICLE VII

 

STOCK APPRECIATION
RIGHTS

 

7.1          Tandem
Stock Appreciation Rights. Stock Appreciation Rights may be granted in conjunction with all or part of any Stock Option
(a “Reference Stock Option”) granted under the Plan (“Tandem Stock Appreciation Rights”).
In the case of a Non-Qualified Stock Option, such rights may be granted either at or after the time of the grant of such Reference
Stock Option. In the case of an Incentive Stock Option, such rights may be granted only at the time of the grant of such Reference
Stock Option.

 

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7.2          Terms
and Conditions of Tandem Stock Appreciation Rights. Tandem Stock Appreciation Rights granted hereunder shall be subject
to such terms and conditions, not inconsistent with the provisions of the Plan, as shall be determined from time to time by the
Committee in its sole discretion, and the following:

 

(a)          Exercise
Price. The exercise price per share of Common Stock subject to a Tandem Stock Appreciation Right shall be the exercise price
of the Reference Stock Option as determined in accordance with Section 6.3(a).

 

(b)         Term.
A Tandem Stock Appreciation Right or applicable portion thereof granted with respect to a Reference Stock Option shall terminate
and no longer be exercisable upon the termination or exercise of the Reference Stock Option, except that, unless otherwise determined
by the Committee, in its sole discretion, at the time of grant, a Tandem Stock Appreciation Right granted with respect to less
than the full number of shares covered by the Reference Stock Option shall not be reduced until and then only to the extent the
exercise or termination of the Reference Stock Option causes the number of shares covered by the Tandem Stock Appreciation Right
to exceed the number of shares remaining available and unexercised under the Reference Stock Option.

 

(c)          Exercisability.
Tandem Stock Appreciation Rights shall be exercisable only at such time or times and to the extent that the Reference Stock Options
to which they relate shall be exercisable in accordance with the provisions of Article VI, and shall be subject to the provisions
of Section 6.3(c).

 

(d)         Method
of Exercise. A Tandem Stock Appreciation Right may be exercised by the Participant by surrendering the applicable portion of
the Reference Stock Option. Upon such exercise and surrender, the Participant shall be entitled to receive the payment determined
in the manner prescribed in this Section 7.2. Stock Options that have been so surrendered, in whole or in part, shall no
longer be exercisable to the extent the related Tandem Stock Appreciation Rights have been exercised.

 

(e)          Payment.
Upon the exercise of a Tandem Stock Appreciation Right, a Participant shall be entitled to receive up to, but no more than, an
amount in shares of Common Stock equal in value to the excess of the Fair Market Value of one share of Common Stock over the Option
exercise price per share specified in the Reference Stock Option agreement, multiplied by the number of shares in respect of which
the Tandem Stock Appreciation Right shall have been exercised.

 

(f)          Deemed
Exercise of Reference Stock Option. Upon the exercise of a Tandem Stock Appreciation Right, the Reference Stock Option or part
thereof to which such Stock Appreciation Right is related shall be deemed to have been exercised for the purpose of the limitation
set forth in Article IV of the Plan on the number of shares of Common Stock to be issued under the Plan.

 

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(g)          Non-Transferability.
Tandem Stock Appreciation Rights shall be Transferable only when and to the extent that the underlying Stock Option would be Transferable
under Section 6.3(e) of the Plan.

 

7.3          Non-Tandem
Stock Appreciation Rights. Non-Tandem Stock Appreciation Rights may also be granted without reference to any Stock Options
granted under the Plan.

 

7.4          Terms
and Conditions of Non-Tandem Stock Appreciation Rights. Non-Tandem Stock Appreciation Rights granted hereunder shall be
subject to such terms and conditions, not inconsistent with the provisions of the Plan, as shall be determined from time to time
by the Committee in its sole discretion, and the following:

 

(a)          Exercise
Price. The exercise price per share of Common Stock subject to a Non-Tandem Stock Appreciation Right shall be determined by
the Committee at the time of grant; provided, that the per share exercise price of a Non-Tandem Stock Appreciation Right
shall not be less than 100% of the Fair Market Value of the Common Stock at the time of grant.

 

(b)          Term.
The term of each Non-Tandem Stock Appreciation Right shall be fixed by the Committee, but shall not be greater than 10 years after
the date the right is granted.

 

(c)          Exercisability.
Non-Tandem Stock Appreciation Rights shall be exercisable at such time or times and subject to such terms and conditions as shall
be determined by the Committee at grant. If the Committee provides, in its discretion, that any such right is exercisable subject
to certain limitations (including, without limitation, that it is exercisable only in installments or within certain time periods),
the Committee may waive such limitations on the exercisability at any time at or after grant in whole or in part (including, without
limitation, waiver of the installment exercise provisions or acceleration of the time at which such right may be exercised), based
on such factors, if any, as the Committee shall determine, in its sole discretion. Unless otherwise determined by the Committee
at grant, the Award agreement shall provide that (i) in the event the Participant engages in Detrimental Activity prior to any
exercise of the Non-Tandem Stock Appreciation Right, all Non-Tandem Stock Appreciation Rights held by the Participant shall thereupon
terminate and expire, (ii) as a condition of the exercise of a Non-Tandem Stock Appreciation Right, the Participant shall be required
to certify (or shall be deemed to have certified) at the time of exercise in a manner acceptable to the Company that the Participant
is in compliance with the terms and conditions of the Plan and that the Participant has not engaged in, and does not intend to
engage in, any Detrimental Activity, and (iii) in the event the Participant engages in Detrimental Activity during the one-year
period commencing on the later of the date the Non-Tandem Stock Appreciation Right is exercised or the date of the Participant’s
Termination, the Company shall be entitled to recover from the Participant at any time within one year after such date, and the
Participant shall pay over to the Company, an amount equal to any gain realized as a result of the exercise (whether at the time
of exercise or thereafter).

 

(d)          Method
of Exercise. Subject to whatever installment exercise and waiting period provisions apply under Section 7.4(c) above,
Non-Tandem Stock Appreciation Rights may be exercised in whole or in part at any time in accordance with the applicable Award agreement,
by giving written notice of exercise to the Company specifying the number of Non-Tandem Stock Appreciation Rights to be exercised.

 

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(e)          Payment.
Upon the exercise of a Non-Tandem Stock Appreciation Right a Participant shall be entitled to receive, for each right exercised,
up to, but no more than, an amount in shares of Common Stock equal in value to the excess of the Fair Market Value of one share
of Common Stock on the date the right is exercised over the Fair Market Value of one share of Common Stock on the date the right
was awarded to the Participant.

 

(f)          Non-Transferability.
No Non-Tandem Stock Appreciation Rights shall be Transferable by the Participant otherwise than by will or by the laws of descent
and distribution, and all such rights shall be exercisable, during the Participant’s lifetime, only by the Participant.

 

7.5          Limited
Stock Appreciation Rights. The Committee may, in its sole discretion, grant Tandem and Non-Tandem Stock Appreciation Rights
either as a general Stock Appreciation Right or as a limited stock appreciation right (a “Limited Stock Appreciation Right”).
Limited Stock Appreciation Rights may be exercised only upon the occurrence of a Change in Control or such other event as the Committee
may, in its sole discretion, designate at the time of grant or thereafter. Upon the exercise of Limited Stock Appreciation Rights,
except as otherwise provided in an Award agreement, the Participant shall receive in Common Stock an amount equal to the amount
(a) set forth in Section 7.2(e) with respect to Tandem Stock Appreciation Rights, or (b) set forth in Section 7.4(e)
with respect to Non-Tandem Stock Appreciation Rights, as applicable.

 

7.6          Repricings
and Buyouts of Stock Appreciation Rights Prohibited.  Notwithstanding anything herein to the contrary, an outstanding Stock
Appreciation Right may not be modified to reduce the exercise price thereof nor may a new Exercisable Award at a lower price be
substituted for a surrendered Stock Appreciation Right (other than adjustments or substitutions in accordance with Section 4.2),
unless such action is approved by the stockholders of the Company.

 

ARTICLE VIII

 

RESTRICTED STOCK

 

8.1          Awards
of Restricted Stock. Shares of Restricted Stock may be issued either alone or in addition to other Awards granted under
the Plan. The Committee shall, in its sole discretion, determine the Eligible Employees, Consultants and Non-Employee Directors,
to whom, and the time or times at which, grants of Restricted Stock shall be made, the number of shares to be awarded, the price
(if any) to be paid by the Participant (subject to Section 8.2), the time or times within which such Awards may be subject
to forfeiture, the vesting schedule and rights to acceleration thereof, and all other terms and conditions of the Awards. The Committee
may condition the grant or vesting of Restricted Stock upon the attainment of specified performance targets (including, the Performance
Goals specified in Exhibit A attached hereto) or such other factors as the Committee may determine, in its sole discretion,
including to comply with the requirements of Section 162(m) of the Code.

 

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Unless otherwise determined
by the Committee at grant, each Award of Restricted Stock shall provide that in the event the Participant engages in Detrimental
Activity prior to, or during the one-year period after, any vesting of Restricted Stock, the Committee may direct that all unvested
Restricted Stock shall be immediately forfeited to the Company and that the Participant shall pay over to the Company an amount
equal to the Fair Market Value at the time of vesting of any Restricted Stock that had vested in the period referred to above.

 

8.2          Awards
and Certificates. Eligible Employees, Consultants and Non-Employee Directors selected to receive Restricted Stock shall
not have any rights with respect to such Award, unless and until such Participant has delivered a fully executed copy of the agreement
evidencing the Award to the Company and has otherwise complied with the applicable terms and conditions of such Award. Further,
such Award shall be subject to the following conditions:

 

(a)          Purchase
Price. The purchase price of Restricted Stock shall be fixed by the Committee. Subject to Section 4.3, the purchase
price for shares of Restricted Stock may be zero to the extent permitted by applicable law, and, to the extent not so permitted,
such purchase price may not be less than par value.

 

(b)          Acceptance.
Awards of Restricted Stock must be accepted within a period of 60 days (or such other period as the Committee may specify) after
the grant date, by executing a Restricted Stock agreement and by paying whatever price (if any) the Committee has designated thereunder.

 

(c)           Legend.
Each Participant receiving Restricted Stock shall be issued a stock certificate in respect of such shares of Restricted Stock,
unless the Committee elects to use another system, such as book entries by the transfer agent, as evidencing ownership of shares
of Restricted Stock. Any such certificate shall be registered in the name of such Participant, and shall, in addition to such legends
required by applicable securities laws, bear an appropriate legend referring to the terms, conditions, and restrictions applicable
to such Award, substantially in the following form:

 

“The anticipation, alienation,
attachment, sale, transfer, assignment, pledge, encumbrance or charge of the shares of stock represented hereby are subject to
the terms and conditions (including forfeiture) of the Lightstone Real Estate Income Trust Inc. (the “Company”)
2015 Stock Incentive Plan (as the same may be amended or amended and restated from time to time, the “Plan”)
and an agreement entered into between the registered owner and the Company dated __________. Copies of such Plan and agreement
are on file at the principal office of the Company.”

 

(d)          Custody.
If stock certificates are issued in respect of shares of Restricted Stock, the Committee may require that any stock certificates
evidencing such shares be held in custody by the Company until the restrictions thereon shall have lapsed, and that, as a condition
of any grant of Restricted Stock, the Participant shall have delivered a duly signed stock power, endorsed in blank, relating to
the Common Stock covered by such Award.

 

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8.3          Restrictions
and Conditions. The shares of Restricted Stock awarded pursuant to the Plan shall be subject to the following restrictions
and conditions:

 

(a)          (i)          Restriction
Period. The Participant shall not be permitted to Transfer shares of Restricted Stock awarded under the Plan during the period
or periods set by the Committee (the “Restriction Period”) commencing on the date of such Award, as set forth
in the Restricted Stock Award agreement and such agreement shall set forth a vesting schedule and any events that would accelerate
vesting of the shares of Restricted Stock. Within these limits, based on service, attainment of Performance Goals pursuant to Section
8.3(a)(ii) and such other factors or criteria as the Committee may determine in its sole discretion, the Committee may condition
the grant or provide for the lapse of such restrictions in installments in whole or in part, or may accelerate the vesting of all
or any part of any Restricted Stock Award or waive the deferral limitations for all or any part of any Restricted Stock Award.

 

(ii)       Objective
Performance Goals, Formulae or Standards. If the grant of shares of Restricted Stock or the lapse of restrictions is based
on the attainment of Performance Goals, the Committee shall establish the Performance Goals and the applicable vesting percentage
of the Restricted Stock Award applicable to each Participant or class of Participants in writing prior to the beginning of the
applicable Performance Period or at such later date as otherwise determined by the Committee and while the outcomes of the Performance
Goals are substantially uncertain. Such Performance Goals may incorporate provisions for disregarding (or adjusting for) changes
in accounting methods, corporate transactions (including, without limitation, dispositions and acquisitions) and other similar
type events or circumstances. With regard to a Restricted Stock Award that is intended to comply with Section 162(m) of the Code,
to the extent any such provision would create impermissible discretion under Section 162(m) of the Code or otherwise violate Section
162(m) of the Code, such provision shall be of no force or effect. The applicable Performance Goals shall be based on one or more
of the performance criteria set forth in Exhibit A hereto.

 

(b)          Rights
as a Stockholder. Except as provided in this Section 8.3(b) and Section 8.3(a) above and as otherwise determined
by the Committee, the Participant shall have, with respect to the shares of Restricted Stock, all the rights of a holder of shares
of Common Stock of the Company including, without limitation, the right to receive any dividends, the right to vote such shares
and, subject to and conditioned upon the full vesting of shares of Restricted Stock, the right to tender such shares. The Committee
may, in its sole discretion, determine at the time of grant that the payment of dividends shall be deferred until, and conditioned
upon, the expiration of the applicable Restriction Period.

 

(c)          Lapse
of Restrictions. If and when the Restriction Period expires without a prior forfeiture of the Restricted Stock, the certificates
for such shares shall be delivered to the Participant. All legends shall be removed from said certificates at the time of delivery
to the Participant, except as otherwise required by applicable law or other limitations imposed by the Committee.

 

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ARTICLE IX

 

PERFORMANCE SHARES

 

9.1          Award
of Performance Shares. Performance Shares may be awarded either alone or in addition to other Awards granted under the
Plan. The Committee shall, in its sole discretion, determine the Eligible Employees, Consultants and Non-Employee Directors, to
whom, and the time or times at which, Performance Shares shall be awarded, the number of Performance Shares to be awarded to any
individual, the Performance Period during which, and the conditions under which, receipt of the Shares will be deferred, and the
other terms and conditions of the Award in addition to those set forth in Section 9.2.

 

Unless otherwise determined
by the Committee at grant, each Award of Performance Shares shall provide that in the event the Participant engages in Detrimental
Activity prior to, or during the one-year period after the later of the date of any vesting of Performance Shares or the date of
the Participant’s Termination, the Committee may direct (at any time within one year thereafter) that all unvested Performance
Shares shall be immediately forfeited to the Company and that the Participant shall pay over to the Company an amount equal to
any gain the Participant realized from any Performance Shares that had vested in the period referred to above.

 

Except as otherwise
provided herein, the Committee shall condition the right to payment of any Performance Share upon the attainment of objective Performance
Goals established pursuant to Section 9.2(c).

 

9.2          Terms
and Conditions. Performance Shares awarded pursuant to this Article IX shall be subject to the following terms and
conditions:

 

(a)          Earning
of Performance Share Award. At the expiration of the applicable Performance Period, the Committee shall determine the extent
to which the Performance Goals established pursuant to Section 9.2(c) are achieved and the percentage of each Performance
Share Award that has been earned.

 

(b)          Non-Transferability.
Subject to the applicable provisions of the Award agreement and the Plan, Performance Shares may not be Transferred during the
Performance Period.

 

(c)          Objective
Performance Goals, Formulae or Standards. The Committee shall establish the objective Performance Goals for the earning of
Performance Shares based on a Performance Period applicable to each Participant or class of Participants in writing prior to the
beginning of the applicable Performance Period or at such later date as permitted under Section 162(m) of the Code and while
the outcomes of the Performance Goals are substantially uncertain. Such Performance Goals may incorporate, if and only to the extent
permitted under Section 162(m) of the Code, provisions for disregarding (or adjusting for) changes in accounting methods, corporate
transactions (including, without limitation, dispositions and acquisitions) and other similar type events or circumstances. To
the extent any such provision would create impermissible discretion under Section 162(m) of the Code or otherwise violate Section
162(m) of the Code, such provision shall be of no force or effect. The applicable Performance Goals shall be based on one or more
of the performance criteria set forth in Exhibit A hereto.

 

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(d)          Dividends.
Unless otherwise determined by the Committee at the time of grant, amounts equal to any dividends declared during the Performance
Period with respect to the number of shares of Common Stock covered by a Performance Share will not be paid to the Participant.

 

(e)          Payment.
Following the Committee’s determination in accordance with Section 9.2(a), shares of Common Stock shall be delivered
to the Eligible Employee, Consultant or Non-Employee Director, or his legal representative, in an amount equal to such individual’s
earned Performance Share. Notwithstanding the foregoing, the Committee may, in its sole discretion, award an amount less than the
earned Performance Share or subject the payment of all or part of any Performance Share to additional vesting, forfeiture and deferral
conditions as it deems appropriate.

 

(f)          Accelerated
Vesting. Based on service, performance or such other factors or criteria, if any, as the Committee may determine, the Committee
may, in its sole discretion, at or after grant, accelerate the vesting of all or any part of any Performance Share Award or waive
the deferral limitations for all or any part of such Award.

 

ARTICLE X

 

OTHER STOCK-BASED
AWARDS

 

10.1       Other
Awards. The Committee, in its sole discretion, is authorized to grant to Eligible Employees, Consultants and Non-Employee
Directors Other Stock-Based Awards that are payable in, valued in whole or in part by reference to, or otherwise based on or related
to shares of Common Stock, including, but not limited to, shares of Common Stock awarded purely as a bonus and not subject to any
restrictions or conditions, shares of Common Stock in payment of the amounts due under an incentive or performance plan sponsored
or maintained by the Company or an Affiliate, performance units, dividend equivalent units, stock equivalent units, restricted
stock units and deferred stock units. To the extent permitted by law, the Committee may, in its sole discretion, permit Eligible
Employees and Non-Employee Directors to defer all or a portion of their cash compensation in the form of Other Stock-Based Awards
granted under the Plan, subject to the terms and conditions of any deferred compensation arrangement established by the Company,
which shall be intended to comply with Section 409A of the Code. Other Stock-Based Awards may be granted either alone or in addition
to or in tandem with other Awards granted under the Plan.

 

Unless otherwise determined
by the Committee at grant, each Other Stock-based Award shall provide that in the event the Participant engages in Detrimental
Activity prior to or during the one-year period after the later of the date of any vesting of Performance Shares or the date of
the Participant’s Termination, the Committee may direct (at any time within one year thereafter) that any unvested portion
of such Award shall be immediately forfeited to the Company and that the Participant shall pay over to the Company an amount equal
to any gain the Participant realized from any such Award that had vested in the period referred to above.

 

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Subject to the provisions
of the Plan, the Committee shall, in its sole discretion, have authority to determine the Eligible Employees, Consultants and Non-Employee
Directors, to whom, and the time or times at which, such Awards shall be made, the number of shares of Common Stock to be awarded
pursuant to such Awards, and all other conditions of the Awards. The Committee may also provide for the grant of Common Stock under
such Awards upon the completion of a specified Performance Period.

 

The Committee may condition
the grant or vesting of Other Stock-Based Awards upon the attainment of specified Performance Goals set forth on Exhibit A
as the Committee may determine, in its sole discretion; provided, that to the extent that such Other Stock-Based Awards
are intended to comply with Section 162(m) of the Code, the Committee shall establish the objective Performance Goals for the vesting
of such Other Stock-Based Awards based on a Performance Period applicable to each Participant or class of Participants in writing
prior to the beginning of the applicable Performance Period or at such later date as permitted under Section 162(m) of the
Code and while the outcomes of the Performance Goals are substantially uncertain. Such Performance Goals may incorporate, if and
only to the extent permitted under Section 162(m) of the Code, provisions for disregarding (or adjusting for) changes in accounting
methods, corporate transactions (including, without limitation, dispositions and acquisitions) and other similar type events or
circumstances. To the extent any such provision would create impermissible discretion under Section 162(m) of the Code or otherwise
violate Section 162(m) of the Code, such provision shall be of no force or effect. The applicable Performance Goals shall be based
on one or more of the performance criteria set forth in Exhibit A hereto.

 

10.2        Terms
and Conditions. Other Stock-Based Awards made pursuant to this Article X shall be subject to the following terms
and conditions:

 

(a)          Non-Transferability.
Subject to the applicable provisions of the Award agreement and the Plan, shares of Common Stock subject to Awards made under this
Article X may not be Transferred prior to the date on which the shares are issued, or, if later, the date on which any applicable
restriction, performance or deferral period lapses.

 

(b)          Dividends.
Unless otherwise determined by the Committee at the time of Award, subject to the provisions of the Award agreement and the Plan,
the recipient of an Award under this Article X shall not be entitled to receive, currently or on a deferred basis, dividends
or dividend equivalents with respect to the number of shares of Common Stock covered by the Award.

 

(c)          Vesting.
Any Award under this Article X and any Common Stock covered by any such Award shall vest or be forfeited to the extent so
provided in the Award agreement, as determined by the Committee, in its sole discretion.

 

(d)          Price.
Common Stock issued on a bonus basis under this Article X may be issued for no cash consideration; Common Stock purchased
pursuant to a purchase right awarded under this Article X shall be priced as determined by the Committee in its sole discretion.
The exercise or base price per share of Common Stock subject to an Other Stock-Based Award that is an Exercisable Award shall be
determined by the Committee at the time of grant, but shall not be less than 100% of the Fair Market Value of a share of Common
Stock at the time of grant.

 

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(e)          Payment.
Form of payment for the Other Stock-Based Award shall be specified in the Award agreement.

 

ARTICLE XI

 

TERMINATION

 

11.1        Termination.
The following rules apply with regard to the Termination of a Participant.

 

(a)          Rules
Applicable to Stock Option and Stock Appreciation Rights. Unless otherwise determined by the Committee at grant (or, if no
rights of the Participant are reduced, thereafter):

 

(i)        Termination
by Reason of Death, Disability or Retirement. If a Participant’s Termination is by reason of death, Disability or the
Participant’s Retirement, all Stock Options or Stock Appreciation Rights that are held by such Participant that are vested
and exercisable at the time of the Participant’s Termination may be exercised by the Participant (or, in the case of death,
by the legal representative of the Participant’s estate) at any time within a one-year period from the date of such Termination,
but in no event beyond the expiration of the stated term of such Stock Options or Stock Appreciation Rights; provided, however,
if the Participant dies within such exercise period, all unexercised Stock Options or Stock Appreciation Rights held by such Participant
shall thereafter be exercisable, to the extent to which they were exercisable at the time of death, for a period of one year from
the date of such death, but in no event beyond the expiration of the stated term of such Stock Options or Stock Appreciation Rights.

 

(ii)       Involuntary
Termination Without Cause. If a Participant’s Termination is by involuntary termination without Cause, all Stock Options
or Stock Appreciation Rights that are held by such Participant that are vested and exercisable at the time of the Participant’s
Termination may be exercised by the Participant at any time within a period of 90 days from the date of such Termination, but in
no event beyond the expiration of the stated term of such Stock Options or Stock Appreciation Rights.

 

(iii)      Voluntary
Termination.  If a Participant’s Termination is voluntary (other than a voluntary termination described in Section
11.1(a)(iv)(B), or a Retirement), all Stock Options or Stock Appreciation Rights that are held by such Participant that are
vested and exercisable at the time of the Participant’s Termination may be exercised by the Participant at any time within
a period of 30 days from the date of such Termination, but in no event beyond the expiration of the stated terms of such Stock
Options or Stock Appreciation Rights.

 

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(iv)      Termination
for Cause. If a Participant’s Termination: (A) is for Cause, or (B) is a voluntary Termination (as provided in Section
11.1(a)(iii)) or a Retirement after the occurrence of an event that would be grounds for a Termination for Cause, all Stock
Options or Stock Appreciation Rights, whether vested or not vested, that are held by such Participant shall thereupon terminate
and expire as of the date of such Termination.

 

(v)      Unvested
Stock Options and Stock Appreciation Rights. Stock Options or Stock Appreciation Rights that are not vested as of the date
of a Participant’s Termination for any reason shall terminate and expire as of the date of such Termination.

 

(b)        Rules
Applicable to Restricted Stock, Performance Shares and Other Stock-Based Awards. Unless otherwise determined by the Committee
at grant or thereafter, upon a Participant’s Termination for any reason: (i) during the relevant Restriction Period, all
Restricted Stock still subject to restriction shall be forfeited; and (ii) any unvested Performance Shares or Other Stock-Based
Awards shall be forfeited.

 

ARTICLE XII

 

CHANGE IN CONTROL
PROVISIONS

 

12.1        Benefits.
In the event of a Change in Control of the Company, and except as otherwise provided by the Committee in an Award agreement or
in a written employment agreement between the Company and a Participant, a Participant’s unvested Award shall vest in full
and a Participant’s Award shall be treated in accordance with one of the following methods as determined by the Committee
in its sole discretion:

 

(a)          Awards,
whether or not vested by their terms or pursuant to the preceding sentence, shall be continued, assumed, have new rights substituted
therefor or be treated in accordance with Section 4.2(d), as determined by the Committee in its sole discretion, and restrictions
to which any shares of Restricted Stock or any other Award granted prior to the Change in Control are subject shall not lapse upon
a Change in Control (other than with respect to vesting pursuant to the foregoing provisions of this Section 12.1) and the
Restricted Stock or other Award shall, where appropriate in the sole discretion of the Committee, receive the same or other appropriate
distribution as other Common Stock on such terms as determined by the Committee in its sole discretion; provided, however,
that, the Committee may, in its sole discretion, decide to award additional Restricted Stock or other Award in lieu of any cash
distribution. Notwithstanding anything to the contrary herein, for purposes of Incentive Stock Options, any assumed or substituted
Stock Option shall comply with the requirements of Treasury Regulation § 1.424-1 (and any amendments thereto).

 

(b)          The
Committee, in its sole discretion, may provide for the purchase of any Awards by the Company or an Affiliate (or the cancellation
and extinguishment thereof pursuant to the terms of a merger or other purchase agreement entered into by the Company) for an amount
of cash equal to the excess of the Change in Control Price (as defined below) of the shares of Common Stock covered by such Awards,
over the aggregate exercise price of such Awards. For purposes of this Section 12.1, “Change in Control Price”
shall mean the highest price per share of Common Stock paid in any transaction related to a Change in Control of the Company.

 

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(c)          The
Committee may, in its sole discretion, provide for the cancellation of any Exercisable Awards without payment, if the Change in
Control Price is less than the exercise price of such Exercisable Award(s).

 

(d)          Notwithstanding
anything else herein, the Committee may, in its sole discretion, provide for accelerated vesting or lapse of restrictions, of an
Award at the time of grant or at any time thereafter.

 

12.2       Change
in Control. Unless otherwise determined by the Committee in the applicable Award agreement or other written agreement approved
by the Committee, a “Change in Control” shall be deemed to occur following any transaction if: (a) any “person”
as such term is used in Sections 13(d) and 14(d) of the Exchange Act (other than the Company, any trustee or other fiduciary holding
securities under any employee benefit plan of the Company, or any company owned, directly or indirectly, by the stockholders of
the Company in substantially the same proportions as their ownership of Common Stock), becomes the “beneficial owner”
(as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 40% or more of the combined voting power of the then
outstanding securities of the Company (or its successor corporation); or (b) the stockholders of the Company approve a plan of
complete liquidation of the Company or the consummation of the sale or disposition by the Company of all or substantially all the
Company’s assets other than (i) the sale or disposition of all or substantially all the assets of the Company to one or more
“persons” (as defined in Section 12.2(a)) who beneficially own, directly or indirectly, at least 50% of the
combined voting power of the outstanding voting securities of the Company at the time of the sale, or (ii) pursuant to a spin-off
type transaction, directly or indirectly, of such assets to the stockholders of the Company. Notwithstanding anything herein to
the contrary, with respect to any payment made on a Change in Control pursuant to a Section 409A Covered Award, a Change in Control
shall not be deemed to occur unless such event constitutes a “change in control event” within the meaning of Section
409A of the Code.

 

ARTICLE XIII

 

TERMINATION OR AMENDMENT
OF PLAN

 

13.1        Termination
or Amendment. Notwithstanding any other provision of the Plan, the Board or the Committee may at any time, and from time
to time, amend, in whole or in part, any of or all the provisions of the Plan (including any amendment deemed necessary to ensure
that the Company may comply with any regulatory requirement referred to in Article XV), or suspend or terminate it entirely,
retroactively or otherwise; provided, however, that, unless otherwise required by law or specifically provided herein,
the rights of a Participant with respect to Awards granted prior to such amendment, suspension or termination, may not be impaired
without the consent of such Participant; and provided, further, without the approval of the stockholders of the Company
in accordance with the laws of the State of Maryland, to the extent required by the applicable provisions of Rule 16b-3 or Section
162(m) of the Code, pursuant to the requirements of any applicable securities exchange rule, or, to the extent applicable to Incentive
Stock Options, Section 422 of the Code, no amendment may be made that would:

 

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(a)          increase
the aggregate number of shares of Common Stock that may be issued under the Plan pursuant to Section 4.1 (except by operation
of Section 4.2);

 

(b)          increase
the maximum individual Participant limitations for a fiscal year under Section 4.1(b) (except by operation of Section
4.2);

 

(c)          change
the classification of Eligible Employees, Consultants or Non-Employee Directors eligible to receive Awards under the Plan;

 

(d)          other
than adjustments or substitutions in accordance with Section 4.2, amend the terms of outstanding Exercisable Awards to reduce
the exercise price thereof or to cancel outstanding Exercisable Awards (where prior to the reduction or cancellation the exercise
price equals or exceeds the Fair Market Value of the shares of Common Stock underlying such Awards) in exchange for property or
for other Awards or Exercisable Awards with an exercise price that is less than the exercise price of the original Exercisable
Award;

 

(e)          extend
the maximum option period under Section 6.3;

 

(f)           alter
the Performance Goals for the Award of Restricted Stock, Performance Shares or Other Stock-Based Awards subject to satisfaction
of Performance Goals as set forth in Exhibit A;

 

(g)          award
any Exercisable Award in replacement of a canceled Exercisable Award with a higher exercise price, except in accordance with Section
6.3(g); or

 

(h)          require
stockholder approval in order for the Plan to continue to comply with the applicable provisions of Section 162(m) of the Code or,
to the extent applicable to Incentive Stock Options, Section 422 of the Code. In no event may the Plan be amended without the approval
of the stockholders of the Company in accordance with the applicable laws of the State of Maryland to increase the aggregate number
of shares of Common Stock that may be issued under the Plan, decrease the minimum exercise price of any Stock Option or Stock Appreciation
Right, or to make any other amendment that would require stockholder approval under the rules of any other securities exchange
or system on which the Company’s securities are listed or traded at the request of the Company.

 

The Committee may amend
the terms of any Award theretofore granted, prospectively or retroactively, but, subject to Article IV or as otherwise specifically
provided herein, no such amendment or other action by the Committee shall adversely impair the rights of any holder without the
holder’s consent. Notwithstanding anything herein to the contrary, the Board or the Committee may amend the Plan or any Award
granted hereunder at any time without a Participant’s consent to comply with Section 409A of the Code or any other applicable
law.

 

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ARTICLE XIV

 

UNFUNDED PLAN

 

14.1       Unfunded
Status of Plan. The Plan is an “unfunded” plan for incentive and deferred compensation. With respect to any
payments as to which a Participant has a fixed and vested interest but that are not yet made to a Participant by the Company, nothing
contained herein shall give any such Participant any rights that are greater than those of a general unsecured creditor of the
Company.

 

ARTICLE XV

 

GENERAL PROVISIONS

 

15.1       Legend.
The Committee may require each Person receiving shares of Common Stock pursuant to an Award granted under the Plan to represent
to and agree with the Company in writing that the Participant is acquiring the shares without a view to distribution thereof and
such other securities law-related representations as the Committee shall request. In addition to any legend required by the Plan,
the certificates and book entry accounts for such shares may include any legend that the Committee, in its sole discretion, deems
appropriate to reflect any restrictions on Transfer.

 

All certificates and
book entry accounts for shares of Common Stock delivered under the Plan shall be subject to such stop transfer orders and other
restrictions as the Committee may, in its sole discretion, deem advisable under the rules, regulations and other requirements of
the Securities and Exchange Commission, the stock market or any national securities exchange system upon whose system the Common
Stock is then listed or quoted, any applicable Federal or state securities law, and any applicable corporate law, and the Committee
may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions.

 

15.2       Other
Plans. Nothing contained in the Plan shall prevent the Board from adopting other or additional compensation arrangements,
subject to stockholder approval if such approval is required; and such arrangements may be either generally applicable or applicable
only in specific cases.

 

15.3       No
Right to Employment/Directorship/Consultancy. Neither the Plan nor the grant of any Option or other Award hereunder shall
give any Participant or other employee, Consultant or Non-Employee Director any right with respect to continuance of employment,
consultancy or directorship by the Company or any Affiliate, nor shall they be a limitation in any way on the right of the Company
or any Affiliate by which an employee is employed or a Consultant or Non-Employee Director is retained to terminate his or her
employment, consultancy or directorship at any time.

 

15.4       Withholding
of Taxes. The Company shall have the right to deduct from any payment to be made pursuant to the Plan, or to otherwise
require, prior to the issuance or delivery of any shares of Common Stock or the payment of any cash hereunder, payment by the Participant
of, any Federal, state or local taxes required by law to be withheld. Upon the vesting of Restricted Stock (or other Award that
is taxable upon vesting), or upon making an election under Section 83(b) of the Code, a Participant shall pay all required withholding
to the Company. Any statutorily required withholding obligation with regard to any Participant may be satisfied, subject to the
advance consent of the Committee, by reducing the number of shares of Common Stock otherwise deliverable or by delivering shares
of Common Stock already owned. Any fraction of a share of Common Stock required to satisfy such tax obligations shall be disregarded
and the amount due shall be paid instead in cash by the Participant.

 

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15.5       No
Assignment of Benefits. No Award or other benefit payable under the Plan shall, except as otherwise specifically provided
by law or permitted by the Committee, be Transferable in any manner, and any attempt to Transfer any such benefit shall be void,
and any such benefit shall not in any manner be liable for or subject to the debts, contracts, liabilities, engagements or torts
of any Person that shall be entitled to such benefit, nor shall it be subject to attachment or legal process for or against such
Person.

 

15.6       Listing
and Other Conditions.

 

(a)         Unless
otherwise determined by the Committee, upon becoming and for as long as the Common Stock is listed on a national securities exchange
or system sponsored by a national securities association, the issue of any shares of Common Stock pursuant to an Award shall be
conditioned upon such shares being listed on such exchange or system. The Company shall have no obligation to issue such shares
unless and until such shares are so listed, and the right to exercise any Option or other Award with respect to such shares shall
be suspended until such listing has been effected.

 

(b)         If
at any time counsel to the Company shall be of the opinion that any issuance, sale or delivery of shares of Common Stock pursuant
to an Option or other Award is or may in the circumstances be unlawful or result in the imposition of excise taxes on the Company
under the statutes, rules or regulations of any applicable jurisdiction, the Company shall have no obligation to effect such issuance,
sale or delivery, or to make any application or to effect or to maintain any qualification or registration under the Securities
Act or otherwise, with respect to shares of Common Stock or Awards, and the right to exercise any Option or other Award shall be
suspended until, in the opinion of said counsel, such issuance, sale or delivery shall be lawful or will not result in the imposition
of excise taxes on the Company and will not constitute a violation of any provisions of any rule or regulation of any governmental
authority or any national securities exchange.

 

(c)         Upon
termination of any period of suspension under this Section 15.6, any Award affected by such suspension that shall not then
have expired or terminated shall be reinstated as to all shares available before such suspension and as to shares that would otherwise
have become available during the period of such suspension, but no such suspension shall extend the term of any Award.

 

(d)         A
Participant shall be required to supply the Company with any certificates, representations and information that the Company requests
and otherwise cooperate with the Company in obtaining any listing, registration, qualification, exemption, consent or approval
the Company deems necessary or appropriate.

 

15.7       Governing
Law. The Plan and actions taken in connection herewith shall be governed and construed in accordance with the laws of the
State of Maryland (regardless of the law that might otherwise govern under applicable Maryland principles of conflict of laws).

 

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15.8       Construction.
Wherever any words are used in the Plan in the masculine gender they shall be construed as though they were also used in the feminine
gender in all cases where they would so apply, and wherever any words are used herein in the singular form they shall be construed
as though they were also used in the plural form in all cases where they would so apply.

 

15.9       Other
Benefits. No Award granted or paid out under the Plan shall be deemed compensation for purposes of computing benefits under
any retirement plan of the Company or its Affiliates nor affect any benefits under any other benefit plan now or subsequently in
effect under which the availability or amount of benefits is related to the level of compensation.

 

15.10     Costs.
The Company shall bear all expenses associated with administering the Plan, including expenses of issuing Common Stock pursuant
to any Awards hereunder.

 

15.11     No
Right to Same Benefits. The provisions of Awards need not be the same with respect to each Participant, and such Awards
to individual Participants need not be the same in subsequent years.

 

15.12     Death/Disability.
The Committee may in its sole discretion require the Transferee of a Participant to supply it with written notice of the Participant’s
death or Disability and to supply it with a copy of the will (in the case of the Participant’s death) or such other evidence
as the Committee deems necessary to establish the validity of the Transfer of an Award. The Committee may, in its discretion, also
require the agreement of the Transferee to be bound by all the terms and conditions of the Plan.

 

15.13     Section
16(b) of the Exchange Act. On and after the Registration Date, all elections and transactions under the Plan by Participants
subject to Section 16 of the Exchange Act involving shares of Common Stock are intended to comply with any applicable exemptive
condition under Rule 16b-3. The Committee may, in its sole discretion, establish and adopt written administrative guidelines, designed
to facilitate compliance with Section 16(b) of the Exchange Act, as it may deem necessary or proper for the administration and
operation of the Plan and the transaction of business thereunder.

 

15.14     Section
409A of the Code. Although the Company does not guarantee the particular tax treatment of an Award granted under the Plan,
Awards made under the Plan are intended to comply with, or be exempt from, the applicable requirements of Section 409A of the Code
and the Plan and any Award agreement hereunder shall be limited, construed and interpreted in accordance with such intent. To the
extent that any Award granted under the Plan constitutes “non-qualified deferred compensation” pursuant to Section
409A of the Code (a “Section 409A Covered Award”), it shall be paid in a manner that will comply with Section
409A of the Code. In no event whatsoever shall the Company or any of its Affiliates be liable for any additional tax, interest
or penalties that may be imposed on a Participant by Section 409A of the Code or any damages for failing to comply with Section
409A of the Code or this Section 15.14. Notwithstanding anything in the Plan or in an Award to the contrary, the following
provisions shall apply to Section 409A Covered Awards:

 

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(a)         A
termination of employment shall not be deemed to have occurred for purposes of any provision of a Section 409A Covered Award providing
for payment upon or following a termination of the Participant’s employment unless such termination is also a “Separation
from Service” within the meaning of Section 409A of the Code and, for purposes of any such provision of Section 409A Covered
Award, references to a “termination,” “termination of employment” or like terms shall mean Separation from
Service. Notwithstanding any provision to the contrary in the Plan or the Award, if the Participant is deemed on the date of the
Participant’s Termination to be a “specified employee” within the meaning of that term under Section 409A(a)(2)(B)
of the Code and using the identification methodology selected by the Company from time to time, or if none, the default methodology
set forth in Section 409A of the Code, then with regard to any such payment under a Section 409A Covered Award, to the extent required
to be delayed in compliance with Section 409A(a)(2)(B) of the Code, such payment shall not be made prior to the earlier of (i)
the expiration of the six (6)-month period measured from the date of the Participant’s Separation from Service, and (ii)
the date of the Participant’s death. All payments delayed pursuant to this Section 15.14(a) shall be paid to the Participant
on the first day of the seventh month following the date of the Participant’s Separation from Service or, if earlier, on
the date of the Participant’s death.

 

(b)         Whenever
a payment under a Section 409A Covered Award specifies a payment period with reference to a number of days, the actual date of
payment within the specified period shall be within the sole discretion of the Company.

 

(c)          If
under the Section 409A Covered Award an amount is to be paid in two or more installments, for purposes of Section 409A of the Code,
each installment shall be treated as a separate payment.

 

15.15     Successor
and Assigns. The Plan shall be binding on all successors and permitted assigns of a Participant, including, without limitation,
the estate of such Participant and the executor, administrator or trustee of such estate.

 

15.16     Severability
of Provisions. If any provision of the Plan shall be held invalid or unenforceable, such invalidity or unenforceability
shall not affect any other provisions hereof, and the Plan shall be construed and enforced as if such provisions had not been included.

 

15.17     Payments
to Minors, Etc. Any benefit payable to or for the benefit of a minor, an incompetent individual or other individual
incapable of receipt thereof shall be deemed paid when paid to such individual’s guardian or to the party providing or reasonably
appearing to provide for the care of such individual, and such payment shall fully discharge the Committee, the Board, the Company,
its Affiliates and their employees, agents and representatives with respect thereto.

 

15.18     Headings
and Captions. The headings and captions herein are provided for reference and convenience only, shall not be considered
part of the Plan, and shall not be employed in the construction of the Plan.

 

    	33

    	 

    

 

15.19     Transition
Period. The Plan has been adopted by the Board and approved by the Company’s stockholder, both of which occurred
prior to the occurrence of a Registration Date. The Plan is intended to constitute a plan described in Treasury Regulation Section
1.162-27(f)(1), pursuant to which the deduction limits under Section 162(m) of the Code do not apply during the applicable reliance
period. The reliance period shall end on the earliest date identified in the definition of “Transition Period” contained
in Section 2.57.

 

ARTICLE XVI

 

EFFECTIVE DATE OF
PLAN

 

The Plan became effective
upon adoption by the Board on [    ], 2015 and was approved by the sole stockholder of the Company on [    ], 2015 in accordance with
the laws of the State of Maryland.

 

ARTICLE XVII

 

TERM OF PLAN

 

No Award shall be granted
pursuant to the Plan on or after [ ], 2020, but Awards granted prior to such date may, and the Committee’s authority to administer
the terms of such Awards, extend beyond that date; provided, however, that no Award (other than a Stock Option or
Stock Appreciation Right) that is intended to be “performance-based” under Section 162(m) of the Code shall be granted
on or after the first meeting of the Company’s stockholders that occurs in the fifth year following the year of stockholder
approval of the Plan unless the Performance Goals set forth on Exhibit A are reapproved (or other designated performance
goals are approved) by the stockholders. If any such Award is granted, the Award shall be a valid Award but it shall not qualify
for the “performance-based compensation” exception under Section 162(m) of the Code unless it is granted subject
to the approval of, and is approved by, the stockholders at the first stockholders’ meeting following such grant.

 

ARTICLE XVIII

 

NAME OF PLAN

 

The Plan shall be known
as the “Lightstone Real Estate Income Trust Inc. 2015 Stock Incentive Plan.”

 

    	34

    	 

    

 

EXHIBIT A

 

PERFORMANCE GOALS

 

To the extent permitted
under Section 162(m) of the Code, performance goals established for purposes of the grant or vesting of Awards of Restricted Stock,
Other Stock-Based Awards or Performance Shares, each intended to be “performance-based” under Section 162(m) of the
Code, shall be based on the attainment of certain target levels of, or a specified increase or decrease (as applicable) in one
or more of the following performance goals (“Performance Goals”):

 

		(a)	earnings per share;

 

		(b)	operating income;

 

		(c)	operating profit margin;

 

		(d)	net income;

 

		(e)	pre-tax income;

 

		(f)	cash flow;

 

		(g)	gross profit;

 

		(h)	gross profit return on investment;

 

		(i)	gross margin return on investment;

 

		(j)	gross margin;

 

		(k)	working capital;

 

		(l)	earnings before interest and taxes;

 

		(m)	earnings before interest, tax, depreciation and amortization;

 

		(n)	return on equity;

 

		(o)	return on assets;

 

		(p)	return on capital;

 

		(q)	return on invested capital;

 

		(r)	net revenues;

 

		(s)	gross revenues;

 

    	A-1

    	 

    

 

		(t)	revenue growth;

 

		(u)	total return to stockholders;

 

		(v)	economic value added;

 

		(w)	specified objectives with regard to limiting the level
of increase in all or a portion of the Company’s bank debt or other long-term or short-term public or private debt or other
similar financial obligations of the Company, which may be calculated net of cash balances and other offsets and adjustments as
may be established by the Committee in its sole discretion;

 

		(x)	the Fair Market Value of the shares of the Common Stock;

 

		(y)	market share or market segment share;

 

		(z)	the growth in the value of an investment in the Common
Stock assuming the reinvestment of dividends; or

 

		(aa)	reduction in expenses.

 

Performance Goals may
also be based upon individual Participant performance goals, as determined by the Committee, in its sole discretion.

 

In addition, such Performance
Goals may be based upon the attainment of specified levels of Company (or subsidiary, division, other operational unit or administrative
department of the Company) performance under one or more of the measures described above relative to the performance of other corporations.
To the extent permitted under Section 162(m) of the Code, but only to the extent permitted under Section 162(m) of the Code (including,
without limitation, compliance with any requirements for stockholder approval), the Committee may also:

 

		(a)	designate additional business criteria on which the performance
goals may be based; or

 

		(b)	adjust, modify or amend the aforementioned business criteria.

 

Except as otherwise determined by the Committee
at grant, the measures used in Performance Goals set under the Plan shall be determined in accordance with U.S. generally accepted
accounting principles and in a manner consistent with the methods used in the Company’s periodic reports on Forms 10-K and
10-Q, without regard to any of the following unless otherwise determined by the Committee consistent with the requirements of Section
162(m)(4)(C) of the Code and the regulations thereunder:

 

		(a)	all items of gain, loss or expense for the fiscal year
or other applicable Performance Period that are related to restructurings, discontinued operations, extraordinary items or events
and other special, unusual or non-recurring items, events or circumstances affecting the Company (or a Subsidiary, division, other
operational unit or administrative department of the Company) or the financial statements of the Company (or a Subsidiary, division,
other operational unit or administrative department of the Company), including events either not directly related to the operations
of the Company (or a Subsidiary, division, other operational unit or administrative department of the Company) or not within the
reasonable control of the Company’s (or a Subsidiary’s, division’s, other operational unit’s or administrative
department’s) management;

 

    	A-2

    	 

    

 

		(b)	all items of gain, loss or expense for the fiscal year
or other applicable Performance Period that are related to (i) the disposal of a business or discontinued operations or (ii) the
operations of any business acquired by the Company (or a Subsidiary, division, other operational unit or administrative department
of the Company) during the fiscal year or other applicable Performance Period; and

 

		(c)	all items of gain, loss or expense for the fiscal year
or other applicable Performance Period that are related to changes in accounting principles or to changes in applicable law or
regulations.

 

To the extent any objective Performance
Goals are expressed using any measures that require deviations from U.S. generally accepted accounting principles, such deviations
shall be at the discretion of the Committee as exercised at the time the Performance Goals are set.

 

    	A-3

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