Document:

Exhibit
10.1

 

ADVISORY AGREEMENT

AMONG

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

LIGHTSTONE VALUE PLUS REIT III LP

AND

LIGHTSTONE VALUE PLUS REIT III LLC

 

Dated as of July 16, 2014

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

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

 

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	24.	MODIFICATION	21
	 	 	 
	25.	SEVERABILITY	21
	 	 	 
	26.	GOVERNING LAW	21
	 	 	 
	27.	ENTIRE AGREEMENT	21
	 	 	 
	28.	NO WAIVER	21
	 	 	 
	29.	PRONOUNS AND PLURALS	21
	 	 	 
	30.	HEADINGS	21
	 	 	 
	31.	EXECUTION IN COUNTERPARTS	21

 

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ADVISORY AGREEMENT

 

THIS ADVISORY AGREEMENT, dated as of
July 16, 2014 (this “Agreement”), is entered into among Lightstone Value Plus Real Estate Investment Trust
III, Inc., a Maryland corporation (the “Company”), Lightstone Value Plus REIT III LP, a Delaware limited
partnership (the “Operating Partnership”), and Lightstone Value Plus REIT III 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 Value Plus REIT III LLC, a Delaware limited liability company, any successor advisor to the Company and the Operating
Partnership, or any Person to which Lightstone Value Plus REIT III LLC or any successor advisor subcontracts all or substantially
all its functions. Notwithstanding the foregoing, a Person hired or retained by Lightstone Value Plus REIT III 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 Value Plus REIT III 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(f).

 

“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.

 

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

 

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

 

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

 

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

 

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

 

“Contract Purchase Price”
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.

 

“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.

 

“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.”

 

“Financing Coordination Fee”
means the fees payable to the Advisor pursuant to Section 10(e).

 

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“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” means
any investment by the Company or the Operating Partnership, directly or indirectly, in Real Estate Assets, Real Estate-Related
Loans or any other asset.

 

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

 

“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 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.

 

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

 

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

 

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“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 Asset”
means any investment by the Company or the Operating Partnership in unimproved and improved Real Property (including fee or leasehold
interests, options and leases), directly, through one or more subsidiaries or through a Joint Venture.

 

“Real Estate Disposition Commission”
means the fees payable to the Advisor pursuant to Section 10(c).

 

“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.

 

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

 

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

 

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“Sale” means any
transaction or series of transactions whereby: (i) the Company or the Operating Partnership directly or indirectly (except as described
in other subsections of this definition) sells, grants, transfers, conveys, or relinquishes its direct or indirect ownership of
any Real Estate Asset, Loan or other Investment or portion thereof, including the lease of any Real Estate Asset consisting of
a building only, and including any event with respect to any Real Estate Asset that gives rise to a significant amount of insurance
proceeds or condemnation awards; (ii) the Company or the Operating Partnership directly or indirectly (except as described in other
subsections of this definition) sells, grants, transfers, conveys, or relinquishes its ownership of all or substantially all the
direct or indirect interest of the Company or the Operating Partnership in any Joint Venture in which it is a co-venturer, member
or partner; (iii) any Joint Venture directly or indirectly (except as described in other subsections of this definition) sells,
grants, transfers, conveys, or relinquishes its direct or indirect ownership of any Real Estate Asset or portion thereof, including
any event with respect to any Real Estate Asset which gives rise to a significant amount of insurance proceeds or condemnation
awards; (iv) the Company or the Operating Partnership directly or indirectly (except as described in other subsections of this
definition) sells, grants, conveys or relinquishes its direct or indirect interest in any Real Estate-Related Loan or portion thereof
(including, with respect to any Real Estate-Related Loan, all payments thereunder or in satisfaction thereof other than regularly
scheduled interest payments) and any event which gives rise to a significant amount of insurance proceeds or similar awards; or
(v) the Company or the Operating Partnership directly or indirectly (except as described in other subsections of this definition)
sells, grants, transfers, conveys or relinquishes its direct or indirect ownership of any other asset not previously described
in this definition or any portion thereof, but not including any transaction or series of transactions specified in clauses (i)
through (v) above in which the proceeds of such transaction or series of transactions are reinvested by the Company in one or more
assets within 180 days thereafter.

 

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

 

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

 

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

 

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

 

“Subordinated Participation
Interest” means a profits interest in the Operating Partnership designated as a Class B Unit in accordance with the
terms of the Operating Partnership Agreement.

 

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

 

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

 

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

 

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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)          serve
as the Company’s and the Operating Partnership’s investment and financial advisor;

 

(b)          exercise
absolute discretion, subject to the Board’s review, in decisions to originate, acquire, retain or sell Investments; provided,
that the Advisor may 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 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 acquisition would not, if consummated, violate or conflict with the Company’s investment objectives;

 

(ii)         the
proposed 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 real estate appraiser selected in good faith by the Advisor and acceptable to the Independent Directors;

 

(c)          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;

 

(d)          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);

 

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(e)          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;

 

(f)          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 acquisitions and dispositions of Investments will be made;
(iv) research, identify, review and recommend 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) enter into leases and service contracts for Investments and,
to the extent necessary, perform all other operational functions for the maintenance and administration of such 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, supervise and evaluate Affiliated and non-Affiliated property managers who perform services for the Company or the
Operating Partnership; (x) oversee Affiliated and non-Affiliated Persons with whom the Advisor contracts to perform certain of
the services required to be performed under this Agreement; (xi) manage accounting and other recordkeeping functions for the Company
and the Operating Partnership, including reviewing and analyzing the capital and operating budgets for the Real Estate Assets and
generating an annual budget for the Company; (xii) recommend various liquidity events to the Board when appropriate; and (xiii)
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);

 

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

 

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

 

(i)          perform
a diligence review on each Investment prior to the closing thereof, including, with respect to Real Properties, obtaining an environmental
site assessment for each proposed acquisition (which at a minimum will include a Phase I assessment, but which will include a Phase
II assessment if the results of a Phase I assessment would warrant it);

 

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(j)          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;

 

(k)          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;

 

(l)          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;

 

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

 

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

 

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

 

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

 

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

 

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

 

(s)          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;

 

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

 

(u)          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;

 

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

 

(w)          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;

 

(x)          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

 

(y)          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.

 

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6.            NO
PARTNERSHIP OR JOINT VENTURE. Except as provided in Section 10(g), 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 (i) one percent (1.0%) of the
Contract Purchase Price of each Real Estate Asset acquired (including the Company’s pro rata share (direct or indirect) of
debt attributable to such Real Estate Asset), or (ii) one percent (1.0%) of the amount advanced for a Loan or other Investment
(other than the acquisition of a Real Estate Asset) (including the Company’s pro rata share (direct or indirect) of debt
attributable to such Investment), as applicable. 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 acquired after the Termination Date for which a contract
to 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.

 

    	11

    	 

    

 

(b)          Limitation
on Total Acquisition Fees, Financing Coordination Fees and Acquisition Expenses; Reinvestments. In no event will the total
of all Acquisition Fees, Financing Coordination Fees and Acquisition Expenses payable with respect to a particular Investment be
unreasonable or exceed (i) five percent (5.0%) of the Contract Purchase Price of each Real Estate Asset (including the Company’s
pro rata share (direct or indirect) of debt attributable to such Real Estate Asset), or (ii) five percent (5.0%) of the amount
advanced for a Loan or other Investment (other than the acquisition of a Real Estate Asset) (including the Company’s pro
rata share (direct or indirect) of debt attributable to such Investment), as applicable. 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 and Financing Coordination 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,
Financing Coordination Fees and Acquisition Expenses payable in respect of such reinvestment be unreasonable or exceed (x) five
percent (5.0%) of the Contract Purchase Price of each Real Estate Asset acquired (including the Company’s pro rata share
(direct or indirect) of debt attributable to such Real Estate Asset), or (y) five percent (5.0%) of the amount advanced for a Loan
or other Investment (other than the acquisition of a Real Estate Asset) (including the Company’s pro rata share (direct or
indirect) of debt attributable to such Investment), as applicable. Notwithstanding the 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)          Real
Estate Disposition Commission. For substantial services in connection with the Sale of a Real Estate Asset, the Company
will pay the Advisor or any of its Affiliates a Real Estate Disposition Commission in an amount equal to the lesser of (i) one-half
of the Competitive Real Estate Commission in respect of such Real Estate Asset and (ii) two percent (2.0%) of the Contract Sales
Price of such Real Estate Asset; provided, however, that the real estate commissions paid to the Advisor, its Affiliates
and non-Affiliates in respect of such Real Estate Asset shall not exceed the lesser of six percent (6.0%) of the Contract Sales
Price or the Competitive Real Estate Commission in respect of such Real Estate Asset. 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 a Real Estate Asset. A substantial amount of services in connection with the Sale of a Real Estate Asset includes the preparation
by the Advisor or its Affiliates of an investment package for the Real Estate Asset (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.

 

(d)          Asset
Management Fee. Beginning on the date on which the initial Offering has ended and the Company has invested substantially
all the net proceeds therefrom, the Company shall pay the Advisor or its assignees a monthly fee equal to one-twelfth (1/12) of
seventy-five hundredths percent (0.75%) of the Average Invested Assets, calculated and payable on the first Business Day of each
month.

 

    	12

    	 

    

 

(e)          Financing
Coordination Fee. If the Advisor provides services in connection with the financing of an Asset, assumption of any loan
in connection with the acquisition of an Asset or origination or refinancing of any loan on an Asset, the Company will pay the
Advisor or its assignees a Financing Coordination Fee equal to seventy-five hundredths percent (0.75%) of the amount available
or outstanding under such financing. The Advisor may reallow some of or all the Financing Coordination Fee to reimburse third parties
with whom it may subcontract to procure such financing.

 

(f)          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 a six percent (6%) 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 six percent (6%) 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 realized appreciation in
Assets upon their Sale or refinancing.

 

(g)          Subordinated
Participation Interests. Prior to the date on which the initial Offering has ended and the Company has invested substantially
all the net proceeds therefrom, the Company shall cause the Operating Partnership to periodically issue Subordinated Participation
Interests in the Operating Partnership to the Advisor or its assignees, pursuant to the terms and conditions contained in the Operating
Partnership Agreement, in connection with the Advisor’s (or its assignees’) management of the Operating Partnership’s
assets.

 

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;

 

    	13

    	 

    

 

(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;

 

(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.

 

    	14

    	 

    

 

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

 

14.           OTHER
ACTIVITIES OF THE ADVISOR.

 

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

 

    	15

    	 

    

 

(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 acquisition both on diversification of each entity’s investments by type of
property and geographic area and on diversification of the tenants of its properties, the policy of each entity relating to leverage
of properties, the anticipated cash flow of each entity, the income tax effects of the purchase 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 acquisition of such investment or a delay in the construction
of a property, 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 the acquisition of investments by two or more affiliated programs seeking
to acquire similar types of assets is applied fairly to the Company.

 

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

    	 

    

 

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.

 

(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

 

    	17

    	 

    

 

(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;

 

(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;

 

    	18

    	 

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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:

 

    	19

    	 

    

 

To the Company:                                     Lightstone
Value Plus Real Estate Investment Trust III, Inc.

1985 Cedar Bridge Avenue

Suite 1

Lakewood, New Jersey 08701

 Attention: Joseph E. Teichman, Esq.
                  General Counsel and Secretary

 

with a copy to:

Proskauer Rose LLP

Eleven Times Square

New York, New York 10036

 Attention: Peter M. Fass, Esq.
                  James P. Gerkis, Esq.

 

To the Operating Partnership:                 Lightstone
Value Plus REIT III LP

1985 Cedar Bridge Avenue

Suite 1

Lakewood, New Jersey 08701

 Attention: Joseph E. Teichman, Esq.

 

with a copy to:

Proskauer Rose LLP

Eleven Times Square

New York, New York 10036

 Attention: Peter M. Fass, Esq.
                  James P. Gerkis, Esq.

 

To the Advisor:                                        Lightstone
Value Plus REIT III LLC

1985 Cedar Bridge Avenue

Suite 1

Lakewood, New Jersey 08701

 Attention: Joseph E. Teichman, Esq.
                  General Counsel and Secretary

 

with a copy to:

Proskauer Rose LLP

Eleven Times Square

New York, New York 10036 

 Attention: Peter M. Fass, Esq.
                  James P. Gerkis, 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).

 

    	20

    	 

    

 

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

 

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

 

26.          GOVERNING
LAW. The provisions of this Agreement shall be construed and interpreted in accordance with the laws of the State of New York
as at the time in effect, without regard to the principles of conflicts of laws thereof.

 

27.           ENTIRE
AGREEMENT. This Agreement contains the entire agreement and understanding 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]

 

    	21

    	 

    

 

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

 

	 	LIGHTSTONE VALUE PLUS REAL ESTATE

 INVESTMENT TRUST III, INC.
	 	 
	 	By:	/s/ David Lichtenstein
	 	 	Name: David Lichtenstein
	 	 	Title: Chief Executive Officer
	 	 
	 	LIGHTSTONE VALUE PLUS REIT III LP
	 	 
	 	By:	Lightstone Value Plus Real Estate Investment Trust III, Inc.
	 	 	 
	 	 	its General Partner
	 	 
	 	By:	/s/ David Lichtenstein
	 	 	Name: David Lichtenstein
	 	 	Title: Chief Executive Officer
	 	 
	 	LIGHTSTONE VALUE PLUS REIT III LLC
	 	 
	 	By:	/s/ David Lichtenstein
	 	 	Name: David Lichtenstein
	 	 	Title: Manager

 

Lightstone Value Plus Real Estate Investment
Trust III, Inc. – Advisory Agreement

 

    	22Exhibit
10.2

 

FORM OF PROPERTY MANAGEMENT AGREEMENT

 

THIS PROPERTY MANAGEMENT AGREEMENT
(“Agreement”) is made and entered into as of July 16, 2014, by and among LIGHTSTONE VALUE PLUS REAL ESTATE
INVESTMENT TRUST III, INC., a Maryland corporation (“REIT”), LIGHTSTONE VALUE PLUS REIT III LP, a Delaware
limited partnership (“OP”), and BEACON PROPERTY MANAGEMENT LIMITED LIABILITY COMPANY, a New Jersey limited
liability company (“Property Manager”).

 

RECITALS:

 

A.            OP
is a newly formed limited partnership whose limited partner is REIT, and was formed to acquire, own, operate, lease, finance and
manage properties throughout the United States and its territories. For purposes of this Agreement, OP and REIT, as well as any
of their direct and indirect subsidiaries and any joint ventures into which any of the foregoing may enter and which are controlled
by OP or REIT, are individually or collectively referred to herein as “Owner.”

 

B.            Property
Manager is a limited liability company, and was formed to operate, manage, lease and manage construction with respect to properties
located throughout the United States and its territories.

 

C.            Owner
desires to engage Property Manager, and Property Manager desires to accept such engagement, to manage the Properties hereafter
acquired by Owner under the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the
premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree
as follows:

 

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

 

(a)          “Agreement”
has the meaning set forth in the introductory paragraph above.

 

(b)          “Annual
REIT Audit” has the meaning set forth in Section 26.

 

(c)          “Budget”
has the meaning set forth in Section 5(a)(i)(G).

 

(d)          “Disbursement
Account” has the meaning set forth in Section 5(a)(i)(B)(1).

 

(e)          “Fee
Audit” has the meaning set forth in Section 26.

 

    	 

    	 

    

 

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

 

(g)          “New
Construction” has the meaning set forth in Section 5(c)(iii).

 

(h)          “On-Site
Personnel” means persons hired or retained as employees of Property Manager to perform services at the Properties.

 

(i)          “OP”
has the meaning set forth in the introductory paragraph above.

 

(j)          “Operating
Account” has the meaning set forth in Section 5(a)(i)(B)(3).

 

(k)          “Owner”
has the meaning set forth in Recital A.

 

(l)          “Ownership
Agreements” has the meaning set forth in Section 5(e).

 

(m)          “Plan”
has the meaning set forth in Section 5(a)(i)(G).

 

(n)          “Properties”
means all the real estate assets of Owner covered by this Agreement, collectively.

 

(o)          “Property”
means an individual real estate asset owned by Owner and all tracts acquired by Owner related to that asset, in either case directly
or indirectly through joint venture arrangements or other partnership or investment interests, subject to this Agreement as more
fully described in a Property Addendum (as defined below).

 

(p)          
“Property Addendum” means an addendum (as the same may be modified, amended or supplemented in writing, from
time to time) which shall be attached to this Agreement and incorporated herein by reference as each Property is purchased and
made subject to this Agreement describing the Property, including the services to be provided by, and the Property Management Fees
to be charged by, Property Manager. If any Property is sold by Owner, the Property Addendum with respect to such Property may,
at Owner’s election, be deemed of no further force or effect from and after the closing of any such sale, except to the extent
of post-closing management and accounting functions thereafter to be performed.

 

(q)          “Property
Management Fees” means the fees and expenses payable to Property Manager pursuant to Section 6, “Compensation,”
hereof.

 

(r)          “Property
Manager” has the meaning set forth in the introductory paragraph above.

 

(s)          “Redevelopments”
has the meaning set forth in Section 5(c)(iii).

 

(t)          “REIT”
has the meaning set forth in the introductory paragraph above.

 

(u)          “Tenant
Improvements” has the meaning set forth in Section 5(c)(iii).

 

    	2

    	 

    

 

2.             Appointment
of Property Manager.

 

(a)          Owner
hereby engages and retains Property Manager as the sole and exclusive manager of each Property for which a Property Addendum is
executed with respect to the property management function to perform such functions as are specified herein and/or on the Property
Addendum related to each such Property. Property Manager hereby accepts such appointment.

 

(b)          Owner
hereby engages and retains Property Manager as the sole and exclusive leasing agent for the leasing of all space in each Property
for which a Property Addendum is executed with respect to the leasing agent function as well as for obtaining ground leases on
any outparcels. Property Manager shall perform such functions as are specified herein and/or on the Property Addendum related to
each such Property. Property Manager hereby accepts such appointment.

 

(c)          Owner
hereby engages and retains Property Manager as the sole and exclusive construction manager of each Property for which a Property
Addendum is executed with respect to the construction management function to perform such functions as are specified herein and/or
on the Property Addendum related to such Property. Property Manager hereby accepts such appointment.

 

(d)          Property
Manager shall act under this Agreement as an independent contractor and not as Owner’s agent or employee. Property Manager
shall not have the right, power or authority to enter into agreements or incur liability on behalf of Owner except as expressly
set forth herein or in a Property Addendum. Any action taken by Property Manager which is not expressly permitted by this Agreement
shall not bind Owner.

 

3.             Standards.
Property Manager shall in good faith, with due diligence and in accordance with generally accepted management and construction
management standards within the geographical areas of the Properties, perform its management, leasing and construction management
duties and obligations described herein. Property Manager shall devote its commercially reasonable efforts to performing its duties
hereunder to manage, operate, maintain and lease the Properties in a diligent, careful and professional manner to maximize all
potential revenues to Owner and to minimize expenses and losses to Owner. The services of Property Manager are to be of a scope
and quality not less than those generally performed by first-class, professional managers of properties similar in type and quality
to the Properties and located in the same market area as the Properties. Property Manager will make available to Owner the full
benefit of the judgment, experience and advice of the members of Property Manager’s organization. Property Manager will at
all times act in good faith, in a commercially reasonable manner and in a fiduciary capacity with respect to the proper protection
of and accounting for Owner’s assets.

 

4.             Term.
This Agreement shall have an initial term of one year from the date hereof and may be renewed for an unlimited number of successive
one-year terms until terminated in accordance with Section 10.

 

    	3

    	 

    

 

5.             Duties
of Property Manager.

 

(a)          Property
Manager’s duties as the property manager for the Properties include the following for each of the Properties (as may be supplemented
with additional duties as detailed in the applicable Property Addendum for each Property) and for Owner, as applicable:

 

(i)          For
Accounting:

 

(A)         Calculate,
bill and collect rental payments and other charges due to Owner from tenants in the Properties under the respective tenant leases
or otherwise with regard to the Properties. To the extent tenant leases affecting any Property so require, Property Manager shall
timely make or verify any calculations that are required to determine the amount of rent due from tenants, including without limitation
calculating percentage rent, operating expense “pass-throughs” and consumer price index adjustments and, where required,
shall give timely notice thereof to tenants.

 

(B)         Cash
Management.

 

(1)         Property
Manager will establish on behalf of OP a disbursement account (a “Disbursement Account”) at a bank to be specified
in writing by Owner, which such Disbursement Account will be tied into each Operating Account (as defined below) via a weekly funding
sweep. This weekly funding sweep shall work in the following manner: all checks presented on behalf of each Property will be paid
from the Disbursement Account and funded by having the cash transferred from the Property’s Operating Account to the Disbursement
Account to fund the checks.

 

(2)         Notwithstanding
the preceding, if (a) an Owner is not a wholly owned subsidiary of REIT or OP and its governing documents so require, or (b) the
payments in respect of a Property are required by a lender to be made into a lockbox account, or (c) if the payments in respect
of a Property are required to be handled otherwise by a contractual restriction agreed to by Owner, then such requirements shall
be followed by Property Manager following written notice thereof by Owner. Funds released from any such lockbox account or other
arrangement to the custody of Owner shall otherwise follow the above procedures.

 

(3)         Property
Manager will establish on behalf of Owner for each Property an operating account (an “Operating Account”) at
a bank to be agreed upon in writing by Owner upon receipt of a fully executed Property Addendum and a W-9 completed by Owner. The
signature card for the Operating Account shall indicate that Property Manager is dealing with the Operating Account as a fiduciary
of Owner. The Operating Account and all funds therein shall at all times be the property of Owner. Owner shall have electronic
banking system access to the Operating Account which shall permit it to obtain account information and make withdrawals from the
Operating Account.

 

    	4

    	 

    

 

(4)         Notwithstanding
anything to the contrary contained herein, Owner may direct payments or deposits received by Property Manager or payments or transfers
from the Operating Account for a Property to deviate from the above procedures by a written request to Property Manager. In such
event, Property Manager shall provide Owner with all information necessary to effect such deposits, transfers or payments.

 

(5)         If
required by state law, Property Manager will deposit security deposits and/or advance rentals in separate accounts in the name
of Owner at the financial institution designated by Owner with respect to the applicable Property.

 

(6)         On
or before the 25th day of each month, Property Manager shall prepare and submit an invoice to Owner accompanied by a computation
of the fees and expense reimbursements due to Property Manager in accordance with this Agreement. Owner shall have the right to
review such invoice and obtain any supporting documentation with respect thereto from Property Manager. To the extent that Owner
believes the computation provided by Property Manager is inconsistent with the computation permitted hereunder, Owner and Property
Manager shall work together in good faith to reach a computation of such fees which is reasonably agreeable to both parties.

 

(7)         Without
in any way limiting the foregoing, (i) Property Manager shall not commingle its funds or property or the funds or property
of any other entities for which it provides services with any other funds or property of Owner, and (ii) Property Manager shall
deposit amounts relating to a Property in the respective Property’s Operating Account within one (1) business day of receipt.
Property Manager shall have no proprietary interest in the Disbursement Account or any Operating Account, or in any other account
authorized hereby, and all sums collected by Property Manager relating to the Properties and all sums placed in such account or
accounts will be the property of Owner and to the extent not yet deposited shall be held in trust by Property Manager for Owner.

 

(C)         Subject
to the terms of this Agreement relating to allocation of expenses, pay fees, charges, expenses and commissions of independent contractors,
architects, engineers, subcontractors, suppliers which contract with Property Manager and Property Manager utilized in the management,
operation, maintenance or repair of the Properties, subject to the Property Manager’s review of same to confirm accuracy
and agreement with same.

 

    	5

    	 

    

 

(D)         Owner
expressly authorizes Property Manager to promptly and diligently enforce Owner’s rights under any tenant leases affecting
any Property, including without limitation taking the following actions where appropriate: (i) with Owner’s prior written
consent: (a) terminating tenancies, (b) instituting and prosecuting actions, and evicting tenants, (c) settling, compromising and
releasing such actions or suits or re-instituting such tenancies, and (d) recovering rents and other sums due by legal proceedings
in a court of general jurisdiction; and (ii) without Owner’s prior written consent: (a) in a magistrates court or other court
of special jurisdiction as applicable, signing and serving such notices as are deemed necessary by Property Manager, and (b) recovering
rents and other sums due by legal proceedings in a magistrates court or similar jurisdiction; in each case Property Manager shall
promptly notify Owner of such action in writing. If authorized by Owner, Property Manager shall consult an attorney for the purpose
of enforcing Owner’s rights or taking any such actions and Owner shall have the right to designate counsel for any matter
and to control all litigation affecting or arising out of the operation of any Property. Property Manager shall keep Owner informed
of any dissatisfaction with the law firm or such services or the reasonableness of the cost thereof.

 

(E)         Prepare
and maintain routine and customary financial and business books and records for Owner and the Properties and to employ and supervise
outside accountants for preparation of income and other tax returns and specialty accounting services for Owner and the Properties.
The preparation of income and other tax returns and the performance of such specialty accounting services shall be supervised by
Property Manager but will be completed at Owner’s expense. Property Manager will use the accrual method of accounting in
accordance with GAAP, with such policies as are to be determined by management subject to Owner’s determination (including,
without limitation, capitalization policies, depreciation and amortization policies, and such other accounting policies as Owner
may direct from time to time).

 

(F)         Maintain
fixed asset accounting detail and related depreciation.

 

    	6

    	 

    

 

(G)         Property
Manager shall prepare and submit to Owner a proposed operating and capital budget, including an itemized statement of the estimated
receipts and disbursements in reasonable detail, which shall include, without limitation, reasonable detail as to employee expenses
to be reimbursed to Property Manager for the operation, repair and maintenance of the Properties (the “Budget”)
and a marketing and leasing plan on the Properties (a “Plan”) (assuming Property Manager is retained as leasing
agent), in each case for the calendar year immediately following such submission. Each Budget and Plan will be in the form approved
by Owner prior to the date thereof. A draft Budget and, as applicable, Plan for each Property shall be submitted to Owner on or
prior to November 1 of the year preceding the January 1 of the year to which such budget shall apply. Owner shall have 30 days
after receipt thereof within which to approve or reject in writing such Budget and, as applicable, Plan, any such rejection to
be accompanied by a reasonably detailed explanation of such rejection. Property Manager shall then submit a revised draft Budget
and, as applicable, Plan to Owner within 10 days thereafter. Owner shall have 10 days after receipt thereof to approve or
reject the same in writing, any such rejection to be accompanied by a reasonably detailed explanation of such rejection. The foregoing
process shall then repeat with 10 days between receipt and revision, on Property Manager’s end, and receipt and acceptance
or rejection on Owner’s end, until each Budget and, as applicable, Plan has been approved. If the parties cannot come to
agreement on a Budget and, as applicable, Plan for a Property, Property Manager shall operate the applicable Property on the Budget
and, as applicable, Plan most recently approved by Owner. To the extent any expenditure to be made by Property Manager shall exceed
the applicable line item in such prior year’s Budget by 5% or more, the same shall require Owner’s prior written consent;
provided, that excluded from the foregoing expenditures requiring such consent shall be expenditures related to snow and
ice removal, utilities, insurance premiums, real estate taxes and assessments, and emergency items outside the control of Property
Manager. Property Manager shall provide supporting information reasonably requested by Owner in connection with Owner’s review
of any Budget or Plan submitted by Property Manager for Owner’s review.

 

Property Manager shall implement
the Budget and Plan and use its commercially reasonable efforts to ensure that the actual cost of operating the Properties shall
not exceed the Budget. The Budget shall constitute an authorization for Property Manager to expend necessary monies to manage and
operate the Properties in accordance with the Budget and subject to the provisions of this Agreement until a subsequent Budget
is approved. The approval of non-recurring costs and Improvements in the Budget and Plan shall constitute an authorization for
Property Manager to collect bids for the expenditure and present a final recommendation to Owner for expenditure of monies to implement
such items called for in the Budget and Plan.

 

Without affecting any other limitation
imposed by this Agreement and except as may be expressly provided to the contrary elsewhere in this Agreement, Property Manager
shall secure the prior written approval of Owner prior to incurring any liability or obligation for any item in excess of $10,000
not reflected on the Budget or the Plan approved in writing by Owner except with respect to emergency items as described in this
subsection (G) or unless another threshold with respect to any matter is specified elsewhere in this Agreement or in a written
directive or authorization of Owner, in which case the threshold for such matter shall be as so set forth.

 

(H)         Pay
wages, salaries, commissions and employee benefits of all On-Site Personnel, including, without limitation, workers’ compensation
insurance, social security taxes, unemployment insurances and other taxes or levies now in force or hereafter imposed with respect
to any such On-Site Personnel, all of which shall be deemed an operating expense of the Properties and shall be in accordance with
approved Budgets.

 

    	7

    	 

    

 

(I)         Deliver
to Owner, within eight days after the end of each month during the term hereof, the monthly reporting package detailed on Exhibit
A attached hereto, which shall relate to the Properties and the immediately preceding calendar month or any portion thereof.
Such reporting package shall be made on an accrual basis and shall include all such transactions, whether or not reimbursable pursuant
to the provisions hereof.

 

(J)         Deliver
to Owner, within 10 days after the end of each calendar quarter during the term hereof, the quarterly reporting package detailed
on Exhibit B attached hereto, which shall relate to the Properties and the immediately preceding calendar quarter or any
portion thereof. Such reporting package shall be made on an accrual basis and shall include all such transactions, whether or not
reimbursable pursuant to the provisions hereof.

 

(K)         Deliver
to Owner, within 30 days after the end of each calendar year during the term hereof, the annual reporting package detailed on Exhibit
C attached hereto, which shall relate to the Properties and the immediately preceding calendar year or any portion thereof.
Such reporting package shall be made on an accrual basis and shall include all such transactions, whether or not reimbursable pursuant
to the provisions hereof.

 

(L)         File
real, personal and ad valorem (real or personal) property tax returns required to be filed by Owner with respect to the Properties
and pay all such ad valorem taxes and assessments out of the Operating Accounts of each of the Properties. Property Manager shall
also utilize, on Owner’s behalf, the services of independent tax consultants and attorneys to appeal or challenge any real,
personal and ad valorem (real or personal) property taxes and Property Manager shall manage such process on Owner’s behalf
by supplying needed information and making required payments out of the operating funds for each Property or the separate funds
of Owner.

 

(ii)         For
Operations: Property Manager shall use commercially reasonable efforts to operate in accordance with the Budget and Plan unless
otherwise specifically approved in writing by Owner and except in the case of emergencies:

 

(A)         Property
Manager will investigate, hire, train, pay, supervise, establish policies for and discharge the On-Site Personnel necessary to
maintain and operate the Properties including, without limitation, property managers and building and maintenance personnel who
shall have experience and education satisfactory to Owner. Such personnel shall in every instance be agents or employees of Property
Manager and not of Owner, but Owner shall have the right to approve, via the annual budget process, the compensation of Property
Manager’s personnel for which Property Manager has the right to be reimbursed hereunder. Property Manager has the right to
be reimbursed for: (i) On-Site Personnel that are employed at the Properties or at management field offices or corporate offices,
should there be no office located on site. The management field office and corporate office employees shall be charged to the respective
Property on the basis of the percentage of time spent attending to such Property based on actual wages and fringe benefits, unless
Owner and Property Manager agree in writing to another basis; and (ii) roving maintenance personnel to the extent needed at the
Properties from time to time, and these employees shall be charged to the respective Properties at a reasonable hourly or monthly
rate pre-approved by Owner and only for the actual and reasonably necessary time spent on such Property by such personnel. Owner
shall have no right to supervise or direct such agents or employees.

 

    	8

    	 

    

 

Property Manager, at Property Manager’s
sole cost and expense, shall maintain during the term of this Agreement a bond or applicable insurance covering Property Manager
and all persons who handle, have access to or are responsible for Owner’s monies, in an amount and form reasonably acceptable
to Owner. Property Manager shall provide Owner with a certificate or other satisfactory documentation evidencing the existence
and terms of such bond(s) upon execution of this Agreement.

 

Property Manager shall supervise,
and at Owner’s cost and expense, shall retain, to the extent such services are not sufficiently provided by On-Site Personnel,
but in accordance with the Budget, independent contractors, subcontractors, and suppliers to provide for the management, maintenance,
repair and operation of the Properties as well as security functions.

 

(B)         If
commercially reasonable within the geographic area in which a Property is located, to obtain not fewer than three (3) competing
bids for, contract with and supervise onsite management of, contractors.

 

(C)         Assist
in coordinating the opening and closing of the businesses of tenants, including, but not limited to, obtaining of insurance and
signage approval.

 

(D)         In
accordance with the operating budget, purchase necessary supplies and equipment required for the proper operation, maintenance,
repair and restoration of the Properties.

 

(E)         Supervise
all maintenance activity at the Properties, and make or cause to be made repairs, replacements and renovations to Improvements.

 

(F)         Contract
and pay charges for utilities used in the operation of the Properties, including, without limitation, water, electricity, gas,
telephone and sewerage services unless carried or covered under the respective tenant’s name.

 

(G)         Contract
for and maintain such policies of commercial general liability and bodily injury and property damage insurance with respect to
the Properties as are acceptable to Owner.

 

    	9

    	 

    

 

(H)         Advertise
the Properties by such means and media and at such costs as are in accordance with the Budget and Plan and as Property Manager
shall deem appropriate (and at Property Manager’s expense, except as set forth in the last sentence of this subsection
(H)) to implement an effective leasing program for the Properties on a local and regional basis. To the extent Owner shall
request specific advertising that differs from or is in addition to Property Manager’s planned approach, the incremental
cost of such specific advertising shall be borne by Owner.

 

(I)         Assist
in securing leases with temporary tenants or licensees for use of the Properties.

 

(J)         Actively
promote and market the Properties to potential tenants, current tenants and the general community.

 

(K)         Conduct
complete inspections of the Properties as is prudent to determine that the same are in good order and repair, but no less frequently
than once per calendar quarter, during the term of this Agreement.

 

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

 

(M)         Maintain
business-like relations with the tenants of the Properties and respond promptly to tenant complaints in a prudent, businesslike
manner. Property Manager shall maintain a record of all written tenant complaints and Property Manager’s response to such
complaints for no less than one year, which record shall be available for review by Owner.

 

(N)         Analyze
all bills received for services, work and supplies in connection with the maintaining and operating the Properties, and pay all
such bills and any other amount payable in respect to the Properties. Property Manager shall use commercially reasonable efforts
to pay all bills within the time required to obtain discounts, if any. Owner may from time to time request that Property Manager
forward certain bills to Owner promptly after receipt, and Property Manager shall comply with any such request. Property Manager
will ensure timely 1099 reporting to the IRS, with 1099s filed under Property Manager’s name and Property Manager’s
taxpayer identification number (TIN), listing Property Manager as the “payer.” Property Manager will provide annually
a signed declaration indicating compliance with 1099 reporting; Property Manager will provide this declaration to Owner with the
February monthly reporting package. Penalties for misfilings as a result of Property Manager’s negligence are not to be charged
to the Property, but are payable by Property Manager.

 

    	10

    	 

    

 

(iii)        Other:

 

(A)         In
accordance with the Budget or as otherwise approved in writing by Owner, employ in-house or outside attorneys, at Owner’s
expense, to handle any legal matters involving the Properties.

 

(B)         Perform
leasing analysis and credit underwriting with respect to prospective tenants (and subtenants and assignees); prepare leases and
other tenant-related documents; and engage in a competitive construction bidding process for lease-related construction projects
expected to exceed $25,000 not otherwise within the duties of a construction manager (as, for example, pursuant to Section 5(c)
below).

 

(C)         Take
such other actions and perform such other functions as Property Manager reasonably deems advisable or necessary for the efficient
and economic management, operation and maintenance of the Properties.

 

(b)          Property
Manager’s duties as leasing agent for any of the Properties indicated on a Property Addendum as being subject to the leasing
agent services as provided herein and subject to the Budget and Plan include the following:

 

(i)          Leasing
Functions. Property Manager will coordinate and negotiate the leasing of the Properties using commercially reasonable efforts
to secure executed leases (both new and renewal) from qualified tenants for available space in the Properties. Such leases must
be consistent with a form and terms approved by Owner unless a tenant requires use of its own lease form. Property Manager shall
be responsible for the hiring of all leasing agents as necessary for the leasing of the Properties, to work with outside brokers
and leasing agents, and otherwise to oversee and manage the leasing process on behalf of Owner. Property Manager’s duties
in this regard shall include, without limitation: (1) the preparation and distribution of listings to potential tenants and/or
their representatives and to reputable and active real estate agents; (2) the supplying of sufficient information to cooperating
brokers and agents to enable them to promote the rental of the Properties; (3) the marketing and promotion of the Properties;
(4) at all times maintaining and updating a merchandising and leasing plan for each Property; and (5) providing an updated leasing
budget and leasing reforecast for the following twelve (12) month period. Additionally, in connection with the budgeting process
referred to above, Property Manager shall submit a yearly leasing budget for approval in accordance (and simultaneously) with the
procedure set forth above for the approval of each Property’s budget by Owner.

 

(ii)         Advertising.
Owner authorizes Property Manager to advertise and to place signage on the Properties regarding the leasing; provided, that
such signage complies with all applicable governmental laws, regulations and requirements. Property Manager will provide a marketing
package, aerial photographs, demographic reports, site plans, signage and a two-sided flyer for each Property at Property Manager’s
expense consistent with Section 5(a)(ii)(H). Any additional advertising and promotion requested by Owner will be done at
Owner’s expense pursuant to a program and budget agreed upon by Owner and Property Manager.

 

    	11

    	 

    

 

(iii)        Other
Actions. Property Manager will take such other action and perform such other functions as Property Manager or Owner deems reasonably
advisable or necessary for the efficient and economic leasing of the Properties.

 

(c)          Property
Manager’s duties as construction manager for the Properties shall be in accordance with a capital budget established by Owner
and Property Manager prior to the commencement of construction activities and shall include the following:

 

(i)          General.
Property Manager shall secure or assist in securing licenses, registrations or permits required by law and shall comply with ordinances,
laws, orders, codes, rules and regulations pertaining to Improvements and/or the services described herein. Property Manager shall
secure lien waivers and affidavits and properly file, to the extent required, terminations of notices of commencement prior to
payment to contractors.

 

(ii)         Bidding.
For all projects estimated to cost more than $25,000, Property Manager shall obtain bids from at least three outside contractors.
Property Manager shall select the low bid unless it has supplied Owner with a reasonable justification in writing for the selection
of a bidder other than the low bidder (e.g., Property Manager determines in its reasonable discretion that the bidder to
be selected is more likely to complete the job on time, with commercially reasonable workmanship and in the most efficient manner).

 

(iii)        New
Construction, Tenant Improvements and Redevelopments. Property Manager will perform the following duties for construction of
Improvements on undeveloped land (“New Construction”) and for construction of Improvements that are to be made
at the direction of, or in conformity with lease obligations to, tenants (“Tenant Improvements”) or for the
improvement to Improvements that change the size or nature of such Improvements or for the redevelopment of Improvements (collectively,
“Redevelopments”):

 

(A)         Provide
updated and detailed project budgets to Owner.

 

(B)         Arrange
for, coordinate, supervise and advise Owner with respect to the selection of architects, contractors, design firms and consultants,
and the execution of design, construction and consulting contracts.

 

(C)         Review
design documents, and drafts thereof, submitted by the architect or other consultants, and notify Owner in writing of any mistakes,
errors or omissions that Property Manager observes in the documents and any recommendations it may have with respect to such mistakes,
errors or omissions; provided, that Property Manager shall not in any manner be responsible for the accuracy, adequacy or
completeness of such documents.

 

(D)         Evaluate
and make recommendations to Owner concerning cost estimates prepared by others.

 

(E)         Review
and evaluate proposed schedules for construction.

 

    	12

    	 

    

 

(F)         Procure
subcontractors through a minimum of three quotes for any jobs estimated to involve in excess of $25,000.

 

(G)         Coordinate
the work of subcontractors.

 

(H)         Monitor
the progress of construction.

 

(I)         Endeavor
to work with the general contractor to identify any deficiencies in the work performed by subcontractors.

 

(J)         Provide
Owner with monthly written status reports.

 

(K)         Advise
Owner with respect to alterations and modifications in any design documents submitted by the architect or other consultants that
may be in Owner’s interest, including obtaining advantages in terms of cost savings, scheduling, leasing, operation and maintenance
issues and other matters affecting the overall benefit of the project.

 

(L)         Review
and advise Owner on change order proposals and requests for additional services submitted to Owner.

 

(M)         Schedule,
coordinate and attend necessary or appropriate project meetings.

 

(N)         Monitor
and coordinate punch list preparation and resolution by the subcontractors.

 

(O)         Make
recommendations to Owner concerning, and monitor, the use of the site by subcontractors, particularly as it relates to staging
and storage, ingress and egress, temporary signage, fencing, barricades, restrictions on hours of operation, safety considerations
and similar considerations.

 

(P)         Coordinate,
monitor, supervise and advise Owner with respect to preparation, execution, completion and filing of project-related documents,
including, but not limited to, contracts, permit applications, licenses, certifications, zoning requirements, land use restrictions,
governmental filings applicable to the project and any other similar documents.

 

(Q)         Review
and advise Owner with respect to draw requests submitted on the project.

 

(R)         Upon
completion of construction, walk the completed New Construction, Tenant Improvements, or Redevelopments with Owner to ensure that
everything has been completed in accordance with the specifications. Property Manager shall cause the subcontractors to repair
or replace any items that are determined to be deficient during this walk.

 

    	13

    	 

    

 

(S)         As
instructed by Owner, perform additional related project management functions.

 

(T)         Collect
warranties and operation manuals, certificates, guarantees, as-builts and any similar documentation for the benefit of Owner.

 

(iv)        New
Construction and Redevelopments. In addition, Property Manager will perform the following duties with respect to New Construction
and Redevelopments:

 

(A)         Provide
Owner with a budget for each Improvement to be built prior to beginning construction of the respective Improvement.

 

(B)         Meet
on a regular basis with Owner’s leasing agents and representatives of prospective tenants.

 

(C)         Arrange
for, coordinate, supervise and advise Owner with respect to various development services prior to design and construction of the
project, including due diligence, site investigations, land use and zoning matters, and similar development services.

 

(v)         Tenant
Improvements. In addition, Property Manager will perform the following duties related to Tenant Improvements:

 

(A)         Arrange
for and supervise the performance of all installations and Improvements in space leased to any tenant which are either expressly
required under the terms of a lease of such space or which are customarily provided to tenants.

 

(B)         Meet
with tenants and prospective tenants and their architects, engineers, consultants and contractors to facilitate design and construction
of leasehold improvements.

 

(C)         Maintain
separate files as to each tenant, and thereby document the entire design and construction process for each tenant.

 

(D)         Compile
and disseminate such data regarding each tenant as Owner may reasonably require.

 

(vi)        Duties
with Respect to Tenant-Directed Improvements. Property Manager will supervise and facilitate tenant installations performed
by the tenant and/or tenant’s contractors, including:

 

(A)         Review
and evaluate lease exhibit language that identifies the scope and nature of tenant construction of the Improvements.

 

(B)         Review
tenant construction documents for compliance with landlord criteria and requirements applicable to the Improvements.

 

    	14

    	 

    

 

(C)         Review
and evaluate proposed schedules for tenant construction.

 

(D)         Coordinate
delivery of shell space to tenants as required by the tenant’s lease.

 

(E)         Monitor
the progress of tenant construction including but not limited to compliance with scheduling requirements, compliance with rules
and regulations of the Property, verify that tenant has obtained proper permits, etc., coordinating requests for tenant improvement
allowance draws.

 

(F)         Maintain
appropriate files and records as to each project documenting the design and construction process for each tenant in a manner consistent
with Property Manager’s record retention guidelines.

 

(vii)       Duties
with Respect to All Improvements. Property Manager will supervise all Improvement projects, such supervision to include, but
not be limited to, preparation of budgets, plans, bidding, subcontractor selection, material selection, job supervision, collection
of lien waivers, sworn statements, affidavits and the like. Property Manager shall require such lien waivers, sworn statements,
affidavits and similar documentation as a condition to disbursement.

 

(d)          Other.
Property Manager shall in all events comply with the reasonable requests of Owner related to property management of, leasing of,
and construction management of the Improvements to be made to, the Properties. Owner shall maintain sufficient funds in an account
or accounts so that Property Manager will have funds available to pay all obligations contemplated hereunder when due. Under no
circumstances shall Property Manager have any obligations or duty to advance funds to or for the account of Owner.

 

(e)          Ownership
Agreements. Owner agrees to obtain and review copies of all (1) agreements of limited partnership, joint venture partnership
agreements and operating agreements of Owner and its affiliates as well as the articles of incorporation, bylaws, and registration
statement on Form S-11 (No. 333-195292) of REIT, including all prospectus supplements and post-effective amendments thereto (collectively,
the “Ownership Agreements”) and (2) mortgages on all Properties and inform Property Manager of any restrictions
relating to property use arising therefrom. Property Manager will use reasonable care to avoid any act or omission which, in the
performance of its duties hereunder, in any way conflicts with the terms of the Ownership Agreements or the mortgages in the absence
of the express direction of REIT’s board of directors, and Property Manager shall promptly notify Owner if any such conflict
arises.

 

(f)          Periodic
Meetings. As reasonably required by Owner, Property Manager, its personnel or contractors engaged or involved in the management,
operation, leasing or construction management of the Properties shall meet to discuss the historical results of operations, to
consider deviations from any budget, and to discuss any other matters so requested by Owner upon reasonable notice from Owner.

 

    	15

    	 

    

 

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

 

6.             Compensation
and Expense Reimbursement.

 

(a)          For
each Property for which Property Manager provides property management services, Owner shall pay Property Manager a monthly Property
Management Fee in an amount not to exceed the fee customarily charged in arm’s-length transactions by others rendering similar
services in the same geographic area for similar properties as determined by a survey of property managers in such area.

 

(b)          For
each Property for which Property Manager provides property management services, Owner shall pay Property Manager a separate fee
for the one-time initial rent-up or leasing-up of newly constructed properties in an amount not to exceed the fee customarily charged
in arm’s-length transactions by others rendering similar services in the same geographic area for similar properties as determined
by a survey of brokers and agents in such area.

 

(c)          For
each Improvement with respect to which Property Manager provides construction management services as set forth in Section 5(c)
(other than as provided in the next sentence), Property Manager shall be entitled to a fee of up to five percent (5%) of the cost
of such Improvement.

 

(d)          Property
Manager will pay such other reimbursable expenses and costs as Owner has approved and deems advisable or necessary for the efficient
and economic management and leasing of the Properties through its annual budgets or as otherwise provided for in this Agreement
(e.g., for marketing or leasing programs that exceed in scope that which Property Manager would normally utilize, as provided
for in Sections 5(a)(ii)(H) and 5(b)(ii)). Owner shall reimburse Property Manager for such costs and expenses, which
shall include, to the extent included in the applicable Property budgets or a general property management and leasing budget to
be agreed upon, personnel costs for On-Site Personnel providing direct services for the Properties and for roving maintenance personnel
to the extent needed at the Properties from time to time, cost of travel and entertainment, printing and stationery, advertising,
marketing, signage, long distance phone calls and other expenses that are directly related to the management of specific Properties.
Notwithstanding the foregoing, Owner shall not reimburse Property Manager for its general overhead costs or, other than as set
forth in this subsection 6(d), for the wages and salaries and other employee-related expenses of its employees.

 

7.             Insurance.
Property Manager shall obtain and keep in full force and effect at Owner’s expense insurance (1) on the Properties, and (2)
on activities at the Properties against such hazards as Owner and Property Manager shall deem appropriate and as may be required
under any mortgage or other loan documents binding upon Owner. In any event, Property Manager shall procure, for the Properties
for which Property Manager is the property manager, insurance sufficient to comply with the leases and the Ownership Agreements.
All liability policies shall provide sufficient insurance satisfactory to both Owner and Property Manager and shall contain waivers
of subrogation for the benefit of Property Manager and the applicable Owner.

 

    	16

    	 

    

 

(a)          Property
Manager shall obtain and keep in full force and effect, in accordance with the laws of the state in which each Property is located,
workers’ compensation insurance covering all employees of Property Manager at the Properties and all persons engaged in the
performance of any work required hereunder. Property Manager shall also obtain and keep in full force and effect, in accordance
with the laws of the state in which each Property is located, employer’s liability, employee theft, commercial general liability,
and umbrella insurance, and Property Manager shall furnish Owner certificates of insurers naming Owner as co-insureds and evidencing
that such insurance is in effect and that insurer will provide directly to Owner no less than 30 days’ notice of any cancellation
or non-renewal. If any work under this Agreement is subcontracted as permitted herein, Property Manager shall include in each subcontract
a provision that the subcontractor also shall furnish Owner, as appropriate, with such a certificate evidencing coverage (and any
other coverage Property Manager deems appropriate in the circumstances) and the naming of Owner as co-insureds and evidencing that
such insurance is in effect and that insurer will provide directly to Owner no less than 30 days’ notice of any cancellation
or non-renewal, as well as indemnification as is customary. The cost of such insurance procured by Property Manager shall be reimbursable
to the same extent as provided in this Agreement.

 

(b)          Property
Manager shall cooperate with and provide reasonable access to the Properties to representatives of insurance companies and insurance
brokers with respect to insurance which is in effect or for which application has been made. Property Manager shall use its good
faith efforts in a commercially reasonable manner to comply with all requirements of insurers.

 

(c)          Property
Manager shall promptly investigate and shall report in detail to Owner and the applicable insurance carriers all accidents, claims
for damage relating to the ownership, operation or maintenance of the Properties, and any damage or destruction to the Properties
and the estimated costs of repair thereof, and shall prepare for approval by Owner all reports required by the applicable insurance
company in connection with any such accident, claim, damage or destruction. Owner shall reimburse Property Manager’s third-party
costs in connection therewith. Such reports shall be given to Owner promptly and any report not so given within 10 days after the
occurrence of any such accident, claim, damage or destruction shall be noted in the monthly reports delivered to Owner. Property
Manager is authorized to settle any claim against an insurance company arising out of any policy and, in connection with such claim,
to execute proofs of loss and adjustments of loss and to collect and provide receipts for loss proceeds using commercially reasonable
good faith efforts.

 

8.             Liability
of Property Manager. Property Manager shall not be liable for any errors in judgment or for mistakes of fact or of law
or for anything which it may in good faith do or refrain from doing, except in the case of gross negligence, fraud or willful misconduct.

 

    	17

    	 

    

 

9.             Indemnity.
Owner shall indemnify Property Manager and its managers, employees and officers against and agrees to defend, protect, hold and
save them free and harmless from any liability or expenses (including reasonable attorney’s fees and court costs) arising
out of injuries or damages to persons or property by reason of any cause relating to the Properties, except to the extent caused
by the gross negligence, fraud or willful misconduct and which is not otherwise covered by insurance held by Owner. Owner shall
name Property Manager as an “additional insured” or “co-insured” on any and all liability insurance policies
for the Properties. Property Manager shall indemnify Owner and its employees and officers against and agrees to defend, protect,
hold and save them free and harmless from any liability or expenses (including reasonable attorney’s fees and court costs)
arising out of injuries or damages to persons or property by reason of any cause relating to the Properties caused by the gross
negligence, fraud or willful misconduct, which is not otherwise covered by insurance held by Owner.

 

10.           Termination.
This Agreement may be terminated by either party upon thirty (30) days’ written notice, in toto or only with respect
to any Property; provided, that such termination shall not affect any rights or obligations accrued to either party prior
to termination (subject to any offsetting claims for damages), including, but not limited to, payment of Property Management Fees
earned to the date of termination (provided, that if termination occurs before a construction project is completed, the
construction management fee to be earned shall be prorated based upon the reasonably estimated portion of the applicable project
that had been completed up to the date of termination). If this Agreement is terminated, only Property Management Fees with respect
to any Properties that are subject to such termination and that have accrued prior to the termination date shall be due to Property
Manager. Notwithstanding anything to the contrary contained in this Agreement, if either Owner or Property Manager defaults in
performing any of its obligations under this Agreement, the other party may terminate this Agreement effective upon delivery of
notice of such default. The indemnification obligations of the parties hereunder shall survive the expiration or termination of
this Agreement. Property Manager’s obligations under this Agreement for physical property management, leasing and construction
management may, at Owner’s election, terminate as to any particular Property upon its sale; provided, that Property
Manager’s obligations for the performance of accounting and other so-called “back office functions” shall terminate
only at such time as a final tax return with respect to the applicable Property has been prepared and filed and such customary
and ordinary information related to the Property or Properties has been provided to Owner. Property Manager shall cooperate subsequent
to any termination of this Agreement as to a particular Property to provide final property reconciliations and other reports as
reasonably requested by Owner.

 

11.           Property
Manager’s Obligations After Termination. Upon the termination of this Agreement, Property Manager shall have the
following duties:

 

(a)          Property
Manager shall deliver to Owner, or its designee, all books and records (including data files in magnetic or other similar storage
media but specifically excluding any licensed software) with respect to the Properties.

 

(b)          Property
Manager shall transfer and assign to Owner, or its designee, or terminate upon Owner’s direction, all service contracts (designated
by Owner for transfer and assignment) and personal property relating to or used in the operation and maintenance of the Properties,
except personal property paid for and owned by Property Manager. Property Manager shall also, for a period of sixty (60) days immediately
following the date of such termination (with respect to this entire Agreement or any Property terminated as being subject to this
Agreement), make itself available to consult with and advise Owner, or its designee, regarding the operation, maintenance and leasing
of the Properties at no additional cost to Owner.

 

    	18

    	 

    

 

(c)          Property
Manager shall render to Owner an accounting of all funds of Owner in its possession and shall deliver to Owner a statement of Property
Management Fees claimed to be due Property Manager and shall cause funds of Owner held by Property Manager relating to the Properties
to be paid to Owner or their designees and shall assist in the transferring of approved signatories on all accounts.

 

12.           No
Obligation to Third Parties. None of the obligations and duties of Property Manager under this Agreement shall in any way
or in any manner be deemed to create any obligations of Property Manager to any third party with the exception of Owner.

 

13.           Additional
Services. The services contemplated hereunder are normal and customary property management, leasing and general and construction
management services. If Property Manager is required or requested to perform additional services beyond the scope of this Agreement,
then Owner shall pay Property Manager fees for these additional services at market rates as mutually agreed upon in advance by
the parties.

 

14.          Property
Manager’s Action on Tenant’s Default. If the reasonably expected costs are less than a threshold to be agreed
upon by Property Manager and Owner with respect to each Property (or with respect to leases or contracts less than certain thresholds
with respect to each Property), Property Manager shall have the right, in its own name or in the name of Owner, to take any and
all actions, including distraint, which Property Manager deems advisable and which Owner shall have the right to take, in the event
of any tenant’s breach of any covenant, provision or condition binding upon such tenant under its lease with Owner. Nothing
in this paragraph shall be deemed to require Property Manager to institute legal action against any tenant. If the reasonably expected
costs exceed the agreed-upon thresholds, then Owner shall only be responsible for such costs if it pre-approves such actions. In
addition, if Owner desires to commence legal action notwithstanding Property Manager’s recommendation to the contrary, it
shall pay for all costs and reasonable attorneys’ fees in connection therewith.

 

15.           Binding
Effect. This Agreement and all the provisions hereof shall be binding upon, and shall inure to the benefit of, the parties
hereto and their respective successors and assigns.

 

16.           Entire
Agreement. This Agreement supersedes all agreements previously made between the parties relating to its subject matter.
There are no other understandings or agreements among them.

 

17.           Assignment.
Property Manager may delegate partially or in full its duties and rights under this Agreement but only with the prior written consent
of Owner. Except as provided in the immediately preceding sentence, this Agreement shall be binding upon and shall inure to the
benefit of the parties and their respective successors and assigns.

 

    	19

    	 

    

 

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

 

19.           Other
Business. Nothing herein contained shall prevent Property Manager from engaging in other activities or business ventures,
whether or not such other activities or ventures are in competition with Owner or the business of Owner, including, without limitation,
property management activities for other parties (including other REITs) and the provision of services to other programs advised,
sponsored or organized by Property Manager or its affiliates or third parties; nor shall this Agreement limit or restrict the right
of any manager, officer, employee or member of Property Manager or its affiliates to engage in any other business or to render
services of any kind to any other partnership, corporation, firm, individual, trust or association. Property Manager may, with
respect to any investment in which Owner is a participant, also render advice and service to each and every other participant therein.
Property Manager shall report to the board of directors of REIT the existence of any condition or circumstance, existing or anticipated,
of which it has knowledge, which creates or could create a conflict of interest between Property Manager’s obligations to
Owner and its obligations to or its interest in any other partnership, limited liability company, corporation, firm, individual,
trust or association.

 

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

 

	OP:	Lightstone Value Plus REIT III LP
	 	1985 Cedar Bridge Ave., Suite 1
	 	Lakewood, New Jersey 08701
	 	Attention:	David Lichtenstein
	 	 
	REIT:	Lightstone Value Plus Real Estate Investment Trust III, Inc.
	 	1985 Cedar Bridge Ave., Suite 1
	 	Lakewood, New Jersey 08701
	 	Attention:	David Lichtenstein
	 	 
	With a copy to:	Proskauer Rose LLP
	 	Eleven Times Square
	 	New York, New York 10005
	 	Attention:	Peter M. Fass, Esq.
	 	 	James P. Gerkis, Esq.
	 	
	Property Manager:	Beacon Property Management Limited Liability Company
	 	1985 Cedar Bridge Ave., Suite 1
	 	Lakewood, New Jersey 08701

 

    	20

    	 

    

 

	 	Attention:	David Lichtenstein

 

	With a copy to:	Proskauer Rose LLP
	 	Eleven Times Square
	 	New York, New York 10005
	 	Attention:	Peter M. Fass, Esq.
	 	 	James P. Gerkis, Esq.

 

21.         Non-Waiver. 
No delay or failure by either party to exercise any right under this Agreement, and no partial or single exercise of that right,
shall constitute a waiver of that or any other right, unless otherwise expressly provided herein.

 

22.         Headings.
 Headings in this Agreement are for convenience only and shall not be used to interpret or construe its provisions.

 

23.         Severability.
 If any term, covenant or condition of this Agreement or the application thereof to any Person or circumstance shall, to any extent,
be held to be invalid or unenforceable, then the remainder of this Agreement, or the application of such term, covenant or condition
to persons or circumstances other than those as to which it is held to be invalid or unenforceable, shall not be affected thereby,
and each term, covenants or condition of this Agreement shall be valid and shall be enforced to the fullest extent permitted by
law.

 

24.         Governing
Law.  This Agreement shall be construed in accordance with and governed by the laws of the State of New York. Any action
to enforce this Agreement or an action for a breach of this Agreement shall be maintained in a binding arbitration proceeding before
the American Arbitration Association in New York, New York.

 

25.         Counterparts.
 This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together
shall constitute one and the same instrument.

 

26.         Audit
Right.  Property Manager shall cooperate with REIT’s independent auditors with respect to the annual audit of REIT
for the purpose of expressing an opinion on the financial statements of REIT (the “Annual REIT Audit”). In addition,
REIT shall have the right, no more than once per year, to conduct an audit of Property Manager’s books and records solely
with respect to the fees and expense reimbursements relating to the services provided pursuant to this Agreement (the “Fee
Audit”). REIT may conduct the Fee Audit by using its own internal auditors or by employing independent auditors. Costs
associated with conducting such Fee Audits by internal or independent auditors, and costs of the Annual REIT Audit, shall be borne
by REIT. If any Fee Audit conducted by or on behalf of REIT reveals a discrepancy in excess of ten percent (10%), and greater than
$10,000, for the aggregate fees and expense reimbursements payable during the period under audit pursuant to the Fee Audit, Property
Manager shall be responsible for the reasonable expenses of such audit.

 

Signatures on next page.

 

    	21

    	 

    

 

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

 

	 	On behalf of “OWNER”:
	 	 
	 	OP:
	 	 
	 	LIGHTSTONE VALUE PLUS REIT III LP
	 	 
	 	By:	Lightstone Value Plus Real Estate Investment Trust III, Inc.
	 	 
	 	Its General Partner
	 	 
	 	By:	/s/ David Lichtenstein
	 	 	Name: David Lichtenstein
	 	 	Title: Chief Executive Officer
	 	 
	 	REIT:
	 	 
	 	LIGHTSTONE VALUE PLUS REAL ESTATE INVESTMENT TRUST III, INC.
	 	 
	 	By:	/s/ David Lichtenstein
	 	 	Name: David Lichtenstein
	 	 	Title: Chief Executive Officer
	 	 
	 	Property Manager:
	 	 
	 	BEACON PROPERTY MANAGEMENT LIMITED LIABILTY COMPANY
	 	 
	 	By:	/s/ David Lichtenstein
	 	 	Name: David Lichtenstein
	 	 	Title: Managing Member

 

    	 

    	 

    

 

EXHIBIT
A

MONTHLY REPORTING PACKAGE

 

For the current month and year to date, statements presenting,
on a comparative basis, actual to budget (and/or forecast or other projections), including variance explanations for material variances:

 

		·	Executive summary (operations, leasing, capital, tenant/market issues, other).

 

		·	Balance sheet.

 

		·	Income statement.

 

		·	Aged receivables and delinquencies report.

 

		·	Certified rent rolls and occupancy reports (as requested in writing by Owner).

 

		·	Month-to-date and year-to-date variance report with explanations (budget to actual and actual to previous year actual).

 

		·	List of any material accrual adjustment that may have been missed on the last business day of each month.

 

		·	Certified leasing status report.

 

		·	Reforecast operating projections and cash flow, if requested.

 

		·	Any additional reports that Owner shall reasonably request.

 

    	 

    	 

    

 

EXHIBIT
B

QUARTERLY REPORTING PACKAGE

 

		·	All items in the monthly reporting package by the deadline for the monthly reporting package.

 

		·	Quarter-to-date variance reports with explanations compared to budget and same period prior year.

 

		·	Copy of cash receipts ledger entries for such period, if requested.

 

		·	The originals (or copies, as Owner may request) of all contracts entered into by Property Manager on behalf of Owner during
such period, if requested.

 

		·	Such other reports as may be required by Owner.

 

    	 

    	 

    

 

EXHIBIT
C

ANNUAL REPORTING PACKAGE

 

		·	All items in the monthly and quarterly reporting packages which shall include annual operating statements and a list of variances
and explanations of material variances (budget to actual and actual to previous year actual) based upon respective deadlines.

 

		·	All information required for tax filings, as determined by Owner.

 

		·	Certifications of assessment, testing and compliance with internal controls.

 

		·	Any other reports reasonably requested by Owner.

 

    	 

    	 

    

 

Form
of Property Addendum

 

PROPERTY DESCRIPTION:

 

Property Name:

 

Street Address:

 

City, State, Zip Code:

 

County:

 

Owner Name:

 

Owner Tax ID#:

 

Tax Parcel ID #:

 

SERVICES TO BE PROVIDED AND MANAGEMENT FEES TO BE CHARGED:

 

		 ̈	Property management services, as specified in Section
5(a) of the Agreement, with:

 

_____ No changes

 

            Changes as follows: ____________________________________________________________________

 

	 
	 
	 

 

Threshold pursuant to Section 14: ______________________________________________________________________

 

	 
	 
	 

 

		 ̈	Property Management Fees, as specified in Section 6(a),
with:

 

_____ No changes

 

_____ Changes as follows: ____________________________________________________________________

 

    	C-2

    	 

    

 

	 
	 
	 

 

		 ̈	Leasing services, as specified in Section 5(b) of the Agreement, with:

 

_____ No changes

 

_____ Changes as follows: _______________________________________________________________________

 

	 
	 
	 

 

		 ̈	Leasing fees, as set forth in Section 6(b) of the
Agreement, with:

 

_____ No changes

 

_____ Changes as follows: _____________________________________________________________________

  

	 
	 
	 

 

Co-Brokers: As leasing agent for the Properties, Property
Manager may cooperate with independent real estate brokers or agents. If Property Manager hires a co-broker in order to assist
Property Manager in securing a tenant or if an opportunity is brought to Property Manager by an independent broker, Property Manager
shall be paid in accordance with the Agreement and the co-broker’s commission will be the responsibility of Property Manager.
If the co-broker’s fee would exceed what Property Manager would otherwise be entitled to pursuant to the above fee schedule,
such co-broker’s commission may be paid only upon written approval of Owner.

 

		 ̈	Construction management services, as specified in Section 5(c) of the Agreement, with:

 

_____ No changes

 

_____ Changes as follows (add attachments as
necessary): ___________________________________________

 

	 
	 
	 

 

    	C-3

    	 

    

 

	 

 

		 ̈	Construction management fees, as set forth in Section
6(c) of the Agreement, with:

 

_____ No changes

 

_____ Changes as follows: ___________________________________________________________________

 

	 
	 
	 

 

    	C-4

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