Document:

Exhibit 4.3

 

SUBSCRIPTION ESCROW AGREEMENT

 

THIS SUBSCRIPTION ESCROW AGREEMENT,
dated as of [   ], 2014 (this “Agreement”), is entered into among Orchard Securities, LLC (the “Dealer
Manager”), Lightstone Real Estate Income Trust Inc. (the “Company”) and UMB Bank, N.A., a national
banking association, as escrow agent (the “Escrow Agent”).

 

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

 

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

 

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

 

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

 

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

 

    	 

    	 

    

 

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

 

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

 

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

 

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

 

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

 

    	2

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

If to the Company:

 

Lightstone Real Estate Income Trust Inc.

1985 Cedar Bridge Ave., Suite 1

Lakewood, New Jersey 08701

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

 

with copies to:

 

Proskauer Rose LLP

Eleven Times Square

New York, New York 10036

Attention: Peter M. Fass, Esq.

 

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Proskauer Rose LLP

Three First National Plaza

70 West Madison, Suite 3800

Chicago, IL 60602

Attention: Michael J. Choate, Esq.

 

If to the Dealer Manager:

 

Orchard Securities, LLC

170 Interstate Plaza

Suite 320

Lehi, Utah 84043

Attention: Cameron Hellewell, General Counsel

 

with a copy to:

 

Martin A. Hewitt, Esq.

11 Quaker Drive

East Brunswick, NJ 08816-3228

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

 

If to the Escrow Agent:

 

UMB Bank, N.A.

Corporate Trust & Escrow Services

1010 Grant Blvd., 4th Floor

Kansas City, MO 64106

Attention: Lara L. Stevens

 

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

 

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

 

    	10

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	11

    	 

    

 

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

 

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

 

[Signature page follows.]

 

    	12

    	 

    

 

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

 

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

 

    	13

    	 

    

 

Exhibit A

 

Certificate
as to Authorized Signatures

 

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

 

		Account Number:	[_____]

 

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

 

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

 

    	14

    	 

    

 

Exhibit A-1

 

Certificate
as to Authorized Signature

 

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

 

		Account Number:	[_____]

 

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

 

	Name/Title	 	Specimen Signature
	 	 	 
	Kevin Bradburn	 	 
	President	 	Signature

 

 

    	15

    	 

    

 

Exhibit B

 

ESCROW FEES

 

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

 

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

 

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

 

    	16

    	 

    

 

Exhibit C

 

List of Investors

 

Pursuant to the Subscription Escrow Agreement,
dated [  ], 2014, among Lightstone Real Estate Income Trust Inc., (the “Company”), Orchard Securities, LLC and
UMB Bank, N.A. (the “Escrow Agent”), the Company hereby certifies that the following investors have paid money
for the purchase of shares of the Company’s common stock, par value $0.01 per share, and that the money has been deposited
with the Escrow Agent:

 

		1.	Name of Investor

Address

Tax Identification Number

Number of Common Shares subscribed for

Amount of money paid and deposited with Escrow Agent

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

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

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

 

		2.	Name of Investor

Address

Tax Identification Number

Number of Common Shares subscribed for

Amount of money paid and deposited with Escrow Agent

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

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

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

 

	Company:	 	 

	By:	 	 

	Its:	 	 

	Date:	 	 

 

    	17

    	 

    

 

Exhibit D

 

[Form of Notice to Pennsylvania Investors]

 

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

 

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

 

 

 

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

 

	 	Signature:	 
	 	 	 
	 	Name:	 
	 	 	(please print)
	 	 	 
	 	Date:	 

 

	Please send the subscription refund to:	 	 
	 	 	 
	 	 	 
	 	 	 

 

    	18Exhibit 10.1

 

ADVISORY AGREEMENT

 

AMONG

 

LIGHTSTONE REAL ESTATE INCOME TRUST
INC.,

 

LIGHTSTONE REAL ESTATE INCOME LP

 

AND

 

LIGHTSTONE REAL ESTATE INCOME LLC

  

Dated as of [●], 2014

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

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

 

    	i

    	 

    

 

	24.	MODIFICATION	19
	 	 	 
	25.	SEVERABILITY	19
	 	 	 
	26.	GOVERNING LAW	19
	 	 	 
	27.	ENTIRE AGREEMENT	20
	 	 	 
	28.	NO WAIVER	20
	 	 	 
	29.	PRONOUNS AND PLURALS	20
	 	 	 
	30.	HEADINGS	20
	 	 	 
	31.	EXECUTION IN COUNTERPARTS	20

 

    	ii

    	 

    

 

ADVISORY AGREEMENT

 

THIS ADVISORY AGREEMENT, dated as of [●],
2014 (this “Agreement”), is entered into among Lightstone Real Estate Income Trust Inc., a Maryland corporation
(the “Company”), Lightstone Real Estate Income LP, a Delaware limited partnership (the “Operating Partnership”),
and Lightstone Real Estate Income LLC, a Delaware limited liability company.

 

WITNESSETH

 

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

 

WHEREAS, the Company is the general partner
of the Operating Partnership;

 

WHEREAS, the Company and the Operating Partnership
desire to avail themselves 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 and the Operating
Partnership, 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 or the Operating Partnership that is not hired or retained to perform substantially
all the functions of Lightstone Real Estate Income LLC with respect to the Company and the Operating Partnership 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” has the
meaning set forth in the Articles of Incorporation.

 

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

 

“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.

 

“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.

 

    	2

    	 

    

 

“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.

 

“Dealer Manager Fee”
means the fee paid to the Dealer Manager for serving as the dealer manager of a Primary 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).

 

“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.

 

    	3

    	 

    

 

“GAAP” means United
States generally accepted accounting principles, consistently applied.

 

“Good Reason”
means: (i) any failure to obtain a satisfactory agreement from any successor to the Company or the Operating Partnership 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 or the Operating Partnership.

 

“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).

 

“Joint Venture”
means any joint venture or partnership or other similar arrangement (other than between the Company and the Operating Partnership)
in which the Company or the Operating Partnership or any of their 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.

 

“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 Assets.

 

“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.

 

    	4

    	 

    

 

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

 

“Operating Partnership Agreement”
means the Agreement of Limited Partnership of the Operating Partnership, among the Company, the Advisor and Lightstone SLP III
LLC, a Delaware limited liability company, as the same may be amended from time to time.

 

“OP Units” means
units of limited partnership interest in the Operating Partnership.

 

“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.

 

“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 or the Operating Partnership, 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.

 

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

 

    	5

    	 

    

 

“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 and the Operating Partnership hereby appoint the Advisor to serve as their 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 and
the Operating Partnership 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, the Bylaws and the Operating Partnership Agreement, the Advisor, either directly
or indirectly, shall, among other duties:

 

(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 and the Operating Partnership 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 the Operating Partnership and perform and supervise the various administrative functions necessary
for the day-to-day management of the operations of the Company and the Operating Partnership;

 

    	6

    	 

    

 

(c)          investigate,
select and, on behalf of the Company and the Operating Partnership, 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 and the Operating Partnership 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 or the Operating Partnership;

 

(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 and the Operating Partnership 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 and the Operating Partnership, 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;

 

    	7

    	 

    

 

(i)          negotiate
on behalf of the Company and the Operating Partnership with banks or other lenders for Loans to be made to the Company, the Operating
Partnership or any of their subsidiaries, and negotiate with investment banking firms and broker-dealers on behalf of the Company,
the Operating Partnership or any of their subsidiaries, or negotiate private sales of Common Shares or obtain Loans for the Company,
the Operating Partnership or any of their 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, the Operating Partnership or any of their 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 and the Operating Partnership;

 

(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 and the Operating Partnership under this Agreement, including reports with respect to potential conflicts of interest involving
the Advisor or any of its Affiliates;

 

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

 

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

 

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

 

(o)          effect
any private placement of OP Units, 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;

 

    	8

    	 

    

 

(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.

 

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 or the Operating Partnership 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 and the Operating Partnership pursuant to this
Agreement, has a fiduciary responsibility and duty to the Company, the Stockholders and the partners in the Operating Partnership.

 

    	9

    	 

    

 

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 or the Operating Partnership
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 or the Operating Partnership, 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 and the Operating Partnership.

 

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, the Operating Partnership 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.

 

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 or the Operating Partnership. 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 or the Operating Partnership, without regard to classification of such equity interests.

 

    	10

    	 

    

 

(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, if during the period ending two years after the close of the initial 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.

 

(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%) per annum 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.

 

    	11

    	 

    

 

11.           EXPENSES.

 

(a)          In
addition to the compensation paid to the Advisor pursuant to Section 10, the Company or the Operating Partnership 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 and the Operating Partnership 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, Listing and registration fees;

 

(x)          expenses
connected with payments of Distributions;

 

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

 

    	12

    	 

    

 

(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;

 

(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 services for which the Advisor or its Affiliates are entitled
to compensation in the form of a separate fee; 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
and the Operating Partnership 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.

 

    	13

    	 

    

 

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.

 

(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 and 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, 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.

 

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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, without limitation, 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.”

 

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
or the Operating Partnership without the consent of the Advisor, except in the case of an assignment by the Company or the Operating
Partnership to a Person which is a successor to all the assets, rights and obligations of the Company or the Operating Partnership,
in which case such successor Person shall be bound hereunder and by the terms of said assignment in the same manner as the Company
or the Operating Partnership, as applicable, 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 or the Operating Partnership
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.

 

    	15

    	 

    

 

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

 

(i)          pay
over to the Company and the Operating Partnership all money collected and held for the account of the Company and the Operating
Partnership 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 and the Operating Partnership then in the custody
of the Advisor; and

 

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

 

20.         INCORPORATION
OF THE ARTICLES OF INCORPORATION AND THE OPERATING PARTNERSHIP AGREEMENT. To the extent that the Articles of Incorporation
or the Operating Partnership Agreement impose obligations or restrictions on the Advisor or grant the Advisor certain rights which
are not set forth in this Agreement, the Advisor shall abide by such obligations or restrictions and such rights shall inure to
the benefit of the Advisor with the same force and effect as if they were set forth herein. 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, the Articles of Incorporation or the provisions of Section II.G of the NASAA
REIT Guidelines. Notwithstanding the foregoing, the Company shall not provide for indemnification of an Indemnitee for any loss
or liability suffered by such Indemnitee, nor shall they 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;

 

    	16

    	 

    

 

(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.

 

(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.

 

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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.

 

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 Operating Partnership:	Lightstone Real Estate Income LP
	 	1985 Cedar Bridge Avenue
	 	Suite 1
	 	Lakewood, New Jersey 08701
	 	Attention:    Joseph E. Teichman, Esq.

 

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	 	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.

 

Any party may at any time give Notice in writing to the other
parties 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.

 

    	19

    	 

    

 

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

 

    	20

    	 

    

 

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 LP
	 	 	 
	 	By:	Lightstone Real Estate Income Trust Inc.
	 	 	 
	 	 	its General Partner
	 	 	 
	 	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 Agreement

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