Document:

Exhibit

Exhibit 10.3

Form of Share Award for Employees
 

GRAMERCY PROPERTY TRUST
 
2016 EQUITY INCENTIVE PLAN
 
SHARE AWARD AGREEMENT

SUMMARY OF SHARE AWARD

The Compensation Committee of the Board of Trustees of Gramercy Property Trust has determined to grant to you a share award for common shares of beneficial interest, par value $0.01 per share, of Gramercy Property Trust (the “Shares”) under the Gramercy Property Trust 2016 Equity Incentive Plan (the “Plan”).  The terms of the share award are set forth in the Share Award Agreement (the “Agreement”) provided to you.  The following provides a summary of the key terms of the Agreement; however, you should read the entire Agreement, along with the terms of the Plan, to fully understand the Agreement.

	
			
	Grantee:
	 
	 

	Date of Grant:
	 
	 

	Total Number of Shares Granted:
	 
	 

	Vesting Schedule*:
	 
	Shares on June 30, 2017

	 
	 
	Shares on June 30, 2018

	 
	 
	Shares on June 30, 2019

	 
	 
	Shares on June 30, 2020

    

* Except as set forth in the Agreement, the Grantee must be employed by, or providing service to, the Employer (as defined in the Plan) on the applicable vesting date for the applicable portion of the Share Award to become vested.

GRAMERCY PROPERTY TRUST 

2016 EQUITY INCENTIVE PLAN

SHARE AWARD AGREEMENT
This SHARE AWARD AGREEMENT (this “Agreement”), dated as of [ __ ], 2016 (the “Date of Grant”), is delivered by Gramercy Property Trust, a Maryland real estate investment trust (the “Company”), to [ __ ] (the “Grantee”).
RECITALS
A.    The Gramercy Property Trust 2016 Equity Incentive Plan (the “Plan”) provides for the grant of common shares of beneficial interest, par value $0.01 per share, of the Company (the “Shares”) pursuant to restricted share awards (“Share Awards”).  
B.    The Company has decided to make a Share Award grant under the Plan to the Grantee.
NOW, THEREFORE, the parties to this Agreement, intending to be legally bound hereby, agree as follows:
1.Share Award Grant.  Subject to the terms and conditions set forth in this Agreement and in the Plan, the Committee hereby grants to the Grantee [ __ ] Shares, subject to the restrictions set forth below and in the Plan (“Restricted Shares”).  Restricted Shares may not be transferred by the Grantee or subjected to any security interest until Restricted Shares have become vested pursuant to this Agreement and the Plan.
2.    Vesting and Nonassignability of Restricted Shares.
(a)    Except as set forth in this Section 2, Restricted Shares shall become fully vested, and the restrictions described in this Agreement shall lapse, with respect to [ __ ] Restricted Shares on June 30, 2017, [ __ ] Restricted Shares on June 30, 2018, [ __ ] Restricted Shares on June 30, 2019, and [ __ ] Restricted Shares on June 30, 2020 (each a “Vesting Date”), in each case if the Grantee continues to be employed by, or provide service to, the Employer (as defined in the Plan) from the Date of Grant to the applicable Vesting Date.
(b)    Except as set forth in Sections 2(c) and 2(d) below, if the Grantee ceases to be employed by, or provide service to, the Employer for any reason before Restricted Shares are fully vested, Restricted Shares that are not then vested shall be forfeited and immediately returned to the Company. 
(c)    Subject to the conditions set forth in Section 2(e), if the Grantee ceases to be employed by, or provide service to, the Employer due to a Qualified Termination (as defined below) (other than a termination by the Employer in connection with or within 18 months after a Change-in-Control (as defined below)), then the Restriction Period (as defined below) shall end thirty (30) days after the date of such termination with respect to any Restricted Shares with respect to which the Restriction Period would have ended within 12 months after the date of such termination if Grantee had remained employed through such date and such Restricted Shares will vest thirty (30) days after such date.

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(d)    Subject to the conditions set forth in Section 2(e), if the Employer terminates the Grantee’s employment without Cause (as defined below) in connection with or within 18 months after a Change-in-Control, then the Restriction Period shall end thirty (30) days after the date of such termination with respect to all unvested Restricted Shares granted under this Award that remain outstanding and such shares will vest thirty (30) days after the date of such termination.
(e)    The provisions of the foregoing Sections 2(c) and 2(d) shall not apply unless the Grantee signs a release containing, among other provisions, a release of claims and non-disparagement, confidentiality and return of property agreements, in a form and manner satisfactory to the Company (the “Release”) and the Release becomes irrevocable within thirty (30) days after the date that the Grantee ceases to be employed by, or provide service to, the Employer.  Any termination or forfeiture of unvested Restricted Shares that could vest pursuant to the foregoing Sections 2(c) and 2(d) and otherwise would have occurred on or within thirty (30) days after the Grantee’s date of termination will be delayed until the 30th day after such date (or such earlier date on which it is determined that such Restricted Shares will not vest) and will occur only to the extent such Restricted Shares do not vest pursuant to this Section 2.  Notwithstanding the vesting schedule set forth in this Section 2, above, no additional vesting shall occur during the 30-day period following the Grantee’s date of termination.  The Company shall hold in escrow until the end of such 30-day period any dividends on Restricted Shares with a record date occurring during such 30-day period.  At the end of such 30-day period, the Company will release to the Grantee the dividends, if any, that such Grantee would have been entitled to receive on such Restricted Shares that vested pursuant to this Section 2, and any dividends payable on Restricted Shares that did not vest pursuant to this Section 2 shall be forfeited to the Company.
(f)    During the period before Restricted Shares vest (the “Restriction Period” with respect to such Restricted Shares), such Restricted Shares may not be sold, assigned, transferred, pledged or otherwise disposed of by the Grantee, and any attempt to sell, assign, transfer, pledge or otherwise dispose of such Restricted Shares contrary to the provisions hereof, and the levy of any execution, attachment or similar process upon such Restricted Shares, shall be null, void and without effect.
3.    Non-Certificated Shares; Dividends; Voting Rights
(a)    The Company will hold Restricted Shares as non‐certificated restricted shares until Restricted Shares vest.  During the Restriction Period with respect to Restricted Shares, the Grantee shall receive any cash dividends with respect to such Restricted Shares, may vote such Restricted Shares and may participate in any distribution pursuant to a plan of dissolution or complete liquidation of the Company.  In the event of a dividend or distribution payable in Shares or other property or a reclassification, split up or similar event during the Restriction Period with respect to Restricted Shares, the Shares or other property issued or declared with respect to such Restricted Shares shall be subject to the same terms and conditions relating to vesting as the Shares to which they relate.
(b)    When the Grantee obtains a vested right to Restricted Shares, vested Shares shall be issued to the Grantee in non-certificated form free of the restrictions under Paragraph 2 of this Agreement.
(c)    The obligation of the Company to deliver Shares under this Agreement shall be subject to all applicable laws, rules and regulations and such approvals by governmental agencies as may be deemed appropriate by the Committee, including such actions as the Company’s counsel shall deem necessary or appropriate to comply with relevant securities laws and regulations.  The Company may require that the Grantee make such representations as the Company deems appropriate.

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(d)    All obligations of the Company under this Agreement shall be subject to the rights of the Company as set forth in the Plan to withhold amounts required to be withheld for any taxes.
4.    Definitions.  Unless the context requires otherwise, capitalized terms used herein without definitions shall have the meanings given to those terms in the Plan. In addition, as used herein:
“Cause” means (A) if the Grantee is a party to an Employment Agreement that includes a definition of “cause,” the definition of such term in such Employment Agreement, or (B) if the Grantee is not party to an Employment Agreement that defines “cause,” (i) engaging in (a) willful or gross misconduct or (b) willful or gross neglect; (ii) repeatedly failing to adhere to the directions of superiors or the Board or the written policies and practices of the Company or its subsidiaries; (iii) the commission of a felony or a crime of moral turpitude, dishonesty, breach of trust or unethical business conduct, or any crime involving the Company or its subsidiaries; (iv) fraud, misappropriation or embezzlement; (v) acts or omissions constituting a material failure to perform substantially and adequately the duties assigned to the Grantee; (vi) any illegal act detrimental to the Company or its subsidiaries; (vii) repeated failure to devote substantially all of the Grantee’s business time and efforts to the Company or its subsidiaries; or (viii) the Grantee’s failure to competently perform the Grantee’s duties after receiving notice from the Company or its subsidiaries, specifically identifying the manner in which the Grantee has failed to perform.
“Change-in-Control” means:
(a)    any “person,” including a “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act, but excluding the Company, any entity controlling, controlled by or under common control with the Company, any trustee, fiduciary or other person or entity holding securities under any employee benefit plan or trust of the Company or any such entity, and the Grantee and any “group” (as such term is used in Section 13(d)(3) of the Exchange Act) of which the Grantee is a member), is or becomes the “beneficial owner” (as defined in Rule 13(d)(3) under the Exchange Act), directly or indirectly, of securities of the Company representing 25% or more of either (1) the combined voting power of the Company’s then outstanding securities or (2) the then outstanding Shares (or other similar equity interest, in the case of a company other than a corporation), in either such case other than as a result of an acquisition of securities directly from the Company; or
(b)    there shall occur any consolidation or merger of the Company that would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation representing (either by remaining outstanding or by being converted into voting securities of the surviving entity) less than 50% of the total voting power of the voting securities of the surviving entity outstanding immediately after such merger or consolidation or ceasing to have the power to elect at least a majority of the board of directors or other governing body of such surviving entity; or 
(c)    there shall occur (1) any sale, lease, exchange or other transfer (in one transaction or a series of transactions contemplated or arranged by any party as a single plan) of all or substantially all of the assets of the Company, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity at least 50% of the combined voting power of the voting securities of which are owned by “persons” (as defined above) in substantially the same proportion as their ownership of the Company, as applicable, immediately prior to such sale, or (2) the approval by shareholders of the Company, as applicable, of any plan or proposal for the liquidation or dissolution of the Company, as applicable; or

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(d)    the members of the Board at the beginning of any consecutive 24-calendar-month period (the “Incumbent Trustees”) cease for any reason other than due to death to constitute at least a majority of the members of the Board; provided that any trustee whose election, or nomination for election by the Company’s shareholders was approved or ratified by a vote of at least a majority of the Incumbent Trustees shall be deemed to be an Incumbent Trustee.
“Disability” means, (A) if the Grantee is a party to an Employment Agreement that includes a definition of “disability,” the definition of such term in such Employment Agreement, or (B) if the Grantee is not party to an Employment Agreement that defines “disability”, a disability which renders the Grantee incapable of performing all of his material duties even with a reasonable accommodation on a full time basis for the entire period of four consecutive months or any 120 days in a 180 day period.
“Employment Agreement” means, as of a particular date, the Grantee’s employment agreement with the Company or one of its subsidiaries in effect as of that date, if any.
“Exchange Act” means the Securities Exchange Act of 1934, as amended.
[“Good Reason” has the meaning set forth in the Employment Agreement.]1 
“Qualified Termination”  means the termination of the Grantee’s employment with the Employer due to (i) a termination without Cause by the Company or one of its subsidiaries, [(ii) a termination with Good Reason by the Grantee,]2 or (iii) the Grantee’s death or Disability.
5.    Grant Subject to Plan Provisions.  This grant is made pursuant to the Plan, which is incorporated herein by reference, and in all respects shall be interpreted in accordance with the Plan.  To the extent any provision hereof is inconsistent with a provision of the Plan, the provision of the this Agreement will govern.  The grant is subject to interpretations, regulations and determinations concerning the Plan established from time to time by the Board or the Committee in accordance with the provisions of the Plan, including, but not limited to, provisions pertaining to (a) rights and obligations with respect to withholding taxes, (b) the registration, qualification or listing of the Shares, (c) changes in capitalization of the Company and (d) other requirements of applicable law.  The Committee shall have the authority to interpret and construe this Agreement pursuant to the terms of the Plan, and its decisions shall be conclusive and binding as to any questions arising hereunder. 
6.    Company Policies.  The Share Award, Restricted Shares and any Restricted Shares that become vested pursuant to the Share Award are subject to any applicable clawback, recoupment, Share trading or other policies implemented by the Board or the Committee, as in effect from time to time.
7.    Withholding.  The Grantee shall be required to pay to the Employer (as defined in the Plan), or make other arrangements satisfactory to the Employer to provide for the payment of, any federal, state, local or other taxes that the Employer is required to withhold with respect to the grant or vesting of Restricted Shares.  Notwithstanding the foregoing, if the Committee so permits, the Grantee may elect to satisfy the Employer’s tax withholding obligation with respect to Restricted Shares by having Shares withheld as provided in the Plan.

1 Only to be included in awards made to employees with Employment Agreements including this concept.
2 Only to be included in awards made to employees with Employment Agreements including this concept.

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8.    No Employment or Other Rights.  The grant of Restricted Shares shall not confer upon the Grantee any right to be retained by or in the employ or service of the Employer and shall not interfere in any way with the right of the Employer to terminate the Grantee’s employment or service at any time. The right of the Employer to terminate at will the Grantee’s employment or service at any time for any reason is specifically reserved.
9.    Restrictions on Sale or Transfer of Shares.  The Grantee agrees to be bound by the Company’s policies regarding the limitations on the transfer of the Shares subject to this grant and understands that there may be certain times during the year that the Grantee will be prohibited from selling, transferring, pledging, donating, assigning, mortgaging, hypothecating or otherwise encumbering the Shares.   
10.    Assignment by Company.  The rights and protections of the Company hereunder shall extend to any successors or assigns of the Company and to the Company’s parents, subsidiaries and affiliates.  This Agreement may be assigned by the Company without the Grantee’s consent.
11.    Effect on Other Benefits.  The value of Shares and dividends distributed with respect to Restricted Shares shall not be considered eligible earnings for purposes of any other plans maintained by the Company, and such value shall not be considered part of the Grantee’s compensation for purposes of determining or calculating other benefits that are based on compensation, including life insurance.
12.    Applicable Law.  The validity, construction, interpretation and effect of this instrument shall be governed by and construed in accordance with the laws of the State of Maryland.
13.    Notice.  Any notice to the Company provided for in this Agreement shall be in writing and sent personally or mailed, and shall be addressed to the Company at the principal place of business of the Company, Attention: General Counsel.  Any notice to the Grantee shall be delivered to the Grantee personally or mailed to the Grantee at the address appearing in the records of the Company.
14.    [SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, the Company has caused its duly authorized officer to execute this Agreement, and the Grantee has executed this Agreement, effective as of the Date of Grant.
GRAMERCY PROPERTY TRUST

By:    ______________________________
Name:
Title:

I hereby (i) acknowledge receipt of the Plan incorporated herein, (ii) acknowledge that I have read this Agreement and understand the terms and conditions of it, (iii) accept the Share Award described in this Agreement, (iv) agree to be bound by the terms of the Plan and this Agreement, and (v) agree that all the decisions and determinations of the Board or the Committee shall be final and binding on me and any other person having or claiming a right under this Award. 
                        
Grantee Signature: ______________________________
Grantee Name:

    

[Signature Page to Restricted Share Award Agreement]Exhibit

Exhibit 10.4

FIRST AMENDMENT
TO THE
FOURTH AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP
OF
GPT OPERATING PARTNERSHIP LP

Dated as of September 29, 2016

This FIRST AMENDMENT TO THE FOURTH AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP OF GPT OPERATING PARTNERSHIP LP (this “Amendment”). dated as of September 29, 2016, is hereby adopted by Gramercy Property Trust, a Maryland real estate investment trust (defined in the Agreement, hereinafter defined, as the “General Partner”), as the general partner of GPT Operating Partnership LP, a Delaware limited partnership (the “Partnership”).  For ease of reference, capitalized terms used herein and not otherwise defined have the meanings assigned to them in the Fourth Amended and Restated Agreement of Limited Partnership of GPT Operating Partnership LP, dated as of April 29, 2016 (the “Agreement”).
WHEREAS, the General Partner desires to amend certain terms in the Agreement relating to the LTIP Units;
WHEREAS, Section 14.01.B of the Agreement grants the General Partner power and authority to amend the Agreement, without the consent of any of the Partnership’s Limited Partners, to set forth the terms of additional Partnership Interests to be issued pursuant to Article IV of the Agreement;
NOW, THEREFORE, the General Partner hereby amends the Agreement as follows:
		
	1.
	The definition of “Percentage Interest” is hereby amended by inserting the following at the end of the definition:

“Notwithstanding the foregoing, for purposes of calculating the allocations and distributions for an LTIP Unit for which the Distribution Participation Date is after the date on which such LTIP Unit was issued, the Percentage Interest shall be calculated by only including in the numerator and denominator a number of such LTIP Units for which the Distribution Participation Date has not yet occurred equal to the number of such LTIP Units multiplied by the LTIP Unit Sharing Percentage (as defined in Exhibit E to this Agreement) for such LTIP Units. For avoidance of doubt, LTIP Units will be taken into account for purposes of calculating Percentage Interests with respect to allocations and distributions whether or not they are vested.”

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	2.
	Section 6.01.A is hereby amended by adding the following to the end of such section:

“For avoidance of doubt, for purposes of allocating Net Income to holders of LTIP Units, the holders’ respective interests in the LTIP Units shall be based on the holders’ Percentage Interests in the LTIP Units.”
 
		
	3.
	Section 6.01.B is hereby amended by adding the following to the end of such section:

“For avoidance of doubt, for purposes of allocating Net Losses to holders of LTIP Units, the holders’ respective interests in the LTIP Units shall be based on the holders’ Percentage Interests in the LTIP Units. For purposes of determining allocations of Net Losses pursuant to Section 6.01.B, an LTIP Unit Limited Partner shall be treated as having a separate  Capital Account with an appropriate share of Partnership Minimum Gain and Partner Minimum Gain for each tranche of LTIP Units with a different issuance date that it holds and a separate Capital Account for its Class A Units, if applicable, and any other Partnership Units.”

		
	4.
	Section 6.01.E of the Agreement is hereby amended and restated to read as follows:

E.    LTIP Allocations.  
(1)    After giving effect to the special allocations set forth in Section 1 of Exhibit C hereof, and the allocations of Net Income under Section 6.01(A)(i) and (ii) (including, for the avoidance of doubt Liquidating Gains that are a component of Net Income), and subject to the other provisions of this Section 6.01, but before allocations of Net Income are made under Section 6.01(A)(iii), any remaining Liquidating Gains shall first be allocated among the Partners so as to cause, as nearly as possible, the Economic Capital Account Balances of the LTIP Unit Limited Partners, to the extent attributable to their ownership of LTIP Units, to be equal to (i) the Class A Unit Economic Balance, multiplied by (ii) the number of their LTIP Units (with respect to each LTIP Unit Limited Partner, the “Target Balance”), provided, however, that no such Liquidating Gains will be allocated with respect to any particular LTIP Unit unless, and only to the extent that, such Liquidating Gains, when aggregated with other Liquidating Gains realized since the issuance of such LTIP Unit, exceed Liquidating Losses realized since the issuance of such LTIP Unit.  Any such allocations shall be made among the LTIP Unit Limited Partners in proportion to the aggregate amounts required to be allocated to each LTIP Unit Limited Partner under this Section 6.01(E).
(2)    Liquidating Gain allocated to an LTIP Unit Limited Partner under this Section 6.01(E) will be attributed to specific LTIP Units of such LTIP Unit Limited Partner for purposes of determining (i) allocations under this Section 6.01(E), (ii) the effect of the forfeiture or conversion of specific LTIP Units on such LTIP Unit Limited Partner’s Capital Account and (iii) the ability of such LTIP Unit Limited Partner to convert specific LTIP Units into Class A Units.  Such Liquidating Gain allocated to such LTIP Unit Limited Partner will generally be attributed in the 

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following order:  (i) first, to Vested LTIP Units held for more than two years, (ii) second, to Vested LTIP Units held for two years or less, (iii) third, to Unvested LTIP Units that have remaining vesting conditions that only require continued employment or service to the General Partner, the Partnership or an Affiliate of either for a certain period of time (with such Liquidating Gains being attributed in order of vesting from soonest vesting to latest vesting), and (iv) fourth, to other Unvested LTIP Units (with such Liquidating Gains being attributed in order of issuance from earliest issued to latest issued).  Within each category, Liquidating Gain will be allocated seriatim (i.e., entirely to the first unit in a set, then entirely to the next unit in the set, and so on, until a full allocation is made to the last unit in the set) in the order of smallest Book-Up Target to largest Book-Up Target. 
(3)    After giving effect to the special allocations set forth above, if, due to distributions with respect to Class A Units in which the LTIP Units do not participate, forfeitures or otherwise, the Economic Capital Account Balance of any present or former LTIP Unit Limited Partner attributable to such LTIP Unit Limited Partner’s LTIP Units, exceeds the Target Balance, then Liquidating Losses shall be allocated to such LTIP Unit Limited Partner, or, in the sole discretion of the General Partner, Liquidating Gains may be allocated to the other Partners, to reduce or eliminate the disparity; provided, however, that if Liquidating Losses or Liquidating Gains are insufficient to completely eliminate all such disparities, such losses or gains shall be allocated among Partners in a manner reasonably determined by the General Partner.  
(4)    The parties agree that the intent of this Section 6.01(E) is (i) to the extent possible to make the Economic Capital Account Balance associated with each LTIP Unit economically equivalent to the Class A Unit Economic Balance and (ii) to allow conversion of an LTIP Unit (assuming prior vesting) into a Class A Unit when sufficient Liquidating Gains have been allocated to such LTIP Unit pursuant to Section 6.01(E)(1) so that either its initial Book-Up Target has been reduced to zero or the parity described in the definition of Target Balance has been achieved.  The General Partner shall be permitted to interpret this Section 6.01(E) or to amend this Agreement to the extent necessary and consistent with this intention.
(5)    In the event that Liquidating Gains or Liquidating Losses are allocated under this Section 6.01(E), Net Income allocable under clause 6.01(A)(iii) and any Net Losses shall be recomputed without regard to the Liquidating Gains or Liquidating Losses so allocated.
(6)    LTIP Forfeitures.  If an LTIP Unit Limited Partner forfeits any LTIP Units to which Liquidating Gain has previously been allocated under this Section 6.01(E), (i) the portion of such LTIP Unit Limited Partner’s Capital Account attributable to such Liquidating Gain allocated to such forfeited LTIP Units will be re-allocated to that LTIP Unit Limited Partner’s remaining LTIP Units that were outstanding on the date of the initial allocation of such Liquidating Gain, using a methodology similar to that described in Section 6.01(E)(2) above as reasonably 

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determined by the General Partner, to the extent necessary to cause such LTIP Unit Limited Partner’s Economic Capital Account Balance attributable to each such LTIP Unit to equal the Class A Unit Economic Balance and (ii) such LTIP Unit Limited Partner’s Capital Account will be reduced by the amount of any such Liquidating Gain not re-allocated pursuant to clause (i) above.
(7)    Definitions.
(A)    “Book-Up Target” for an LTIP Unit means (i) initially, the Class A Unit Economic Balance as determined on the date such LTIP Unit was granted and (ii) thereafter, the remaining amount, if any, required to be allocated to such LTIP Unit for the Economic Capital Account Balance of the LTIP Unit Limited Partner, to the extent attributable to such LTIP Unit, to be equal to the Class A Unit Economic Balance. 
(B)    “Class A Unit Economic Balance” shall mean (i) the Capital Account balance of the General Partner, plus the amount of the General Partner’s share of any Partner Minimum Gain or Partnership Minimum Gain, in either case to the extent attributable to the General Partner’s ownership of Class A Units and computed on a hypothetical basis after taking into account all allocations through the date on which any allocation is made under this Section 6.01.E, divided by (ii) the number of the General Partner’s Class A Units.
(C)    “Economic Capital Account Balance” with respect to an LTIP Unit Limited Partner, means an amount equal to such LTIP Unit Limited Partner’s Capital Account balance, plus the amount of its share of any Partner Minimum Gain or Partnership Minimum Gain, in either case to the extent attributable to LTIP Units.
(D)    “Liquidating Gains” means any net capital gain realized in connection with the actual or hypothetical sale of all or substantially all of the assets of the Partnership, including but not limited to net capital gain realized in connection with an adjustment to the Carrying Value of Partnership assets under Section 1.D of Exhibit B to this Agreement.
(E)    “Liquidating Losses” means any net capital loss realized in connection with the actual or hypothetical sale of all or substantially all of the assets of the Partnership, including but not limited to net capital gain realized in connection with an adjustment to the Carrying Value of Partnership assets under Section 1.D of Exhibit B to this Agreement.
(F)    “LTIP Unit Limited Partner” means any Limited Partner that is named in the books and records of the Partnership as a holder of LTIP Units.

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	5.
	Section 8.06.A, subparagraph (iv) of the Agreement is hereby amended and restated by replacing the first reference to “one (1) year” in such subparagraph with “two (2) years”. 

 
		
	6.
	Section 1.B of Exhibit E to the Agreement is hereby amended by deleting the final sentence of such section.

		
	7.
	Section 2.A of Exhibit E to the Agreement is hereby amended by adding the following the beginning of such section:

“Prior to the Distribution Participation Date (as defined below) established for any LTIP Units, holders of such LTIP Units shall be entitled to receive, if, when and as authorized by the General Partner out of funds legally available for the payment of distributions, regular cash distributions in an amount per unit equal to the product of (i) the LTIP Unit Sharing Percentage applicable to such LTIP Unit, multiplied by (ii) the distribution such LTIP Unit would be entitled to under Article V and this Section 2.A of Exhibit E if the Distribution Participation Date for such LTIP Unit had already occurred. “LTIP Unit Sharing Percentage” means, with respect to an LTIP Unit, ten percent (10%) or such other percentage designated as the LTIP Unit Sharing Percentage for such LTIP Unit as set forth in the documentation pursuant to which such LTIP Unit is granted.” 

		
	8.
	Section 3 of Exhibit E to the Agreement is hereby amended and restated to read as follows:

“3.    Allocations.    Commencing with the portion of the taxable year of the Partnership that begins on the Distribution Participation Date established for any LTIP Units, such LTIP Units shall be allocated Net Income and Net Loss in amounts per LTIP Unit equal to the amounts allocated per Class A Unit. For the portion of any taxable year of the Partnership prior to the Distribution Participation Date established for any LTIP Units, such LTIP Units shall be allocated Net Income and Net Loss in amounts per LTIP Unit equal to a percentage of the amounts allocated per Class A Unit (other than any such amounts associated with a non-liquidating special, extraordinary or other non-regular distributions that such LTIP Units were not entitled to receive) equal to the LTIP Unit Sharing Percentage applicable to such LTIP Unit. The allocations provided by the preceding sentences shall be subject to the proviso to the first sentence of Section 6.01.B of the Agreement. The General Partner is authorized in its discretion to delay or accelerate the participation of the LTIP Units in allocations of Net Income and Net Loss, or to adjust the allocations made, so that the ratio of (i) the total amount of Net Income or Net Loss allocated with respect to each LTIP Unit in a taxable year, to (ii) the total amount distributed to that LTIP Unit with respect to such period, is more nearly equal to such ratio as computed for the Class A Units held by the General Partner.”
 
		
	9.
	Section 4 of Exhibit E to the Agreement is hereby amended by deleting the following words in the first sentence thereof:

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“the Capital Account Limitation (as defined in Section 7.C of this Exhibit E),”

		
	10.
	Section 7.B of Exhibit E to the Agreement is amended and restated to read as follows:

“B.    Number of Units Convertible.  A holder of Vested LTIP Units may convert such Vested LTIP Units, the Book-Up Target of which is zero, into an equal number of fully paid and non-assessable Class A Units, giving effect to all adjustments (if any) made pursuant to Section 4 of this Exhibit E. “Capital Account Limitation” shall refer to the requirement that the Book-Up Target for a Vested LTIP Unit equal zero in order for such Vested LTIP Unit to be converted to a Class A Unit.”

		
	11.
	Section 9.B of Exhibit E to the Agreement is hereby amended and restated as follows:

“B. Special Approval Rights. In addition to, and not in limitation of, the provisions of Section 9.A above (and notwithstanding anything appearing to be contrary in the Agreement), the General Partner and/or the Partnership shall not, without the affirmative consent of the holders of sixty-six and two-thirds percent (66 2/3%) of the then outstanding LTIP Units, given in person or by proxy, either in writing or at a meeting, take any action that would materially and adversely alter, change, modify or amend the rights, powers or privileges of the LTIP Units; but subject in any event to the following provisions: (i) no consent of the holders of LTIP Units will be required if and to the extent that any such alteration, change, modification or amendment would similarly alter, change, modify or amend the rights, powers or privileges of the Class A Units; (ii) with respect to the occurrence of any merger, consolidation or other business combination or reorganization, so long as the LTIP Units either (w) will be exchanged for, or an LTIP Unit Limited Partner will have the right to receive for each LTIP Unit, an amount of cash, securities, or other property equal to the greatest amount of cash, securities, or other property paid to a holder of one Class A Unit in consideration of one Class A Unit pursuant to the terms of such transaction, (x) are all converted into Class A Units immediately prior to the effectiveness of the transaction, (y) remain outstanding with the terms thereof materially unchanged or (z) if the Partnership is not the surviving entity in such transaction, are exchanged for a security of the surviving entity with terms that are materially the same with respect to rights to allocations, distributions, redemption, conversion and voting as the LTIP Units and without any income, gain or loss expected to be recognized by the holder upon the exchange for federal income tax purposes (and with the terms of the Class A Units or such other securities into which the LTIP Units (or the substitute security therefor) are convertible materially the same with respect to rights to allocations, distributions, redemption, conversion and voting), the occurrence of any such event shall not be deemed to materially and adversely alter, change, modify or amend the rights, powers or privileges of the LTIP Units, provided further, that if some, but not all, of the LTIP Units are converted into Class A Units immediately prior to the effectiveness of the transaction (and neither clause (w), (y) or (z) above is applicable), then the consent required pursuant to this section will be the consent of the holders of sixty-six and two-thirds percent (66 

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2/3%) of the LTIP Units to be outstanding following such conversion; (iii) any creation or issuance of any Class A Units or of any class of series of common or preferred units of the Partnership (whether ranking junior to, on a parity with or senior to the LTIP Units with respect to payment of distributions, redemption rights and the distribution of assets upon liquidation, dissolution or winding up), which either (x) does not require the consent of the holders of Class A Units or (y) does require such consent and is authorized by a vote of the holders of Class A Units; and LTIP Units voting together as a single class, together with any other class or series of units of limited partnership interest in the Partnership upon which like voting rights have been conferred, shall not be deemed to materially and adversely alter, change, modify or amend the rights, powers or privileges of the LTIP Units; and (iv) any waiver by the Partnership of restrictions or limitations applicable to any outstanding LTIP Units with respect to any holder or holders thereof shall not be deemed to materially and adversely alter, change, modify or amend the rights, powers or privileges of the LTIP Units with respect to other holders. The foregoing voting provisions will not apply if, as of or prior to the time when the action with respect to which such vote would otherwise be required will be taken or be effective, all outstanding LTIP Units shall have been converted and/or redeemed, or provision is made for such redemption and/or conversion to occur as of or prior to such time.”

		
	12.
	Except as otherwise consented to by the Limited Partners in accordance with the terms of the Agreement, the amendments set forth herein shall only apply with respect to LTIP Units issued on or after the date hereof. The Agreement and this Amendment shall be read together and shall have the same force and effect as if the provisions of the Agreement and this Amendment (including attachments hereto) were contained in one document.  Any provisions of the Agreement not amended by this Amendment shall remain in full force and effect as provided in the Agreement immediately prior to the date hereof.

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IN WITNESS WHEREOF, the General Partner has executed this Amendment as of the date first written above.

GRAMERCY PROPERTY TRUST

By:    /s/ Benjamin P. Harris        
Name:     Benjamin P. Harris
Title:    President

Signature Page to the First Amendment to the Fourth Amended and Restated Agreement of Limited Partnership

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