Document:

Exhibit
10.1

 

Form of
Purchase Agreement

 

GRAMERCY
CAPITAL CORP.

 

INVESTMENT
PROCEDURES

 

The prospective investor
(the “Investor”)  understands
that the offer and sale of the common stock, par value $0.001 per share (the “Common
Stock”),  of Gramercy Capital Corp., a Maryland
corporation (the “Company”),  to the
Investor is not being registered under the Securities Act of 1933, as amended
(the “Securities Act”),  but rather is
being made privately by the Company.

 

The Investor should
complete the following steps prior to the intended date of purchase for the
Common Stock:

 

1.  Complete and execute the
attached purchase agreement (the “Agreement”) and send the completed
Agreement and an executed signature page to the Company at the address below so
that the Company may determine whether you are eligible to subscribe for and
purchase shares of the Common Stock.

 

2.  Upon your delivery of a
completed Agreement, you will be deemed to have irrevocably subscribed for the
number of shares of Common Stock indicated on the Agreement, which subscription
includes an irrevocable commitment to pay the full amount of the purchase price
for the Common Stock.  If the
subscription is not accepted for any reason, the purchase price for the Common
Stock (the “Subscription Amount”) will be returned to you.

 

3.  In connection with the
closing of the offering, you must pay the Subscription Amount in accordance
with prior delivery instructions received from the Company.

 

4.  Please send the Agreement,
including an executed signature page and direct all questions to:

 

Gramercy Capital Corp.

420 Lexington Avenue

New York, New York 10170

Attention:  Robert R. Foley

Phone:  212-297-1000

 

5.  After the Company receives a
copy of the Agreement, including an executed signature page, the Company will
notify you whether you are eligible to subscribe for and purchase shares of the
Common Stock and your subscription has been accepted, and will notify you of
the subscription date (the “Offering Date”).

 

6.  Upon acceptance of the
subscription, a counterpart copy of the executed Agreement will be signed as
accepted on behalf of the Company and be returned to you.

 

The Agreement, as well as
payment in immediately available funds of the Subscription Amount, must be
received no later than the closing, subject to the discretion of the Company to
waive such “prior receipt” requirement.

 

iv

 

THE ENCLOSED DOCUMENTS ARE CONFIDENTIAL AND
MAY NOT BE REPRODUCED, DUPLICATED OR DELIVERED BY YOU TO ANY OTHER PERSON FOR ANY
REASON.

 

If requested by the
Company, each Investor which is an entity must provide evidence satisfactory to
the Company that the organizational documents of the Investor permit it to make
investments in securities such as the Common Stock, that all appropriate action
has been taken by the Investor to authorize the investment and that the person
or persons executing the Agreement have the authority to do so.

 

v

 

PURCHASE
AGREEMENT

 

This purchase agreement
(the “Agreement”), dated as of December 3, 2004, is by and among
Gramercy Capital Corp., a Maryland corporation (the “Seller” or the “Company”),
               
(the “Investment Adviser”), which is entering into this Agreement on
behalf of itself (as to Paragraph 5 of this Agreement) and those individual
purchasers (each, a “Subscriber” and collectively, the “Subscribers”)
which are listed under their respective names on Schedule A.

 

In connection with the
Subscriber’s proposed purchase of shares of common stock, par value $0.001 per
share of the Company (the “Common Stock”), with the number of shares of
Common Stock acquired by each Subscriber set forth on Schedule A,
the parties hereto agree as follows:

 

1.  Upon the terms and subject to
the conditions set forth in this letter, the Subscriber hereby irrevocably
subscribes for and agrees to purchase from the Company such number of shares of
Common Stock as is set forth on the signature page of this letter at a price
equal to $17.27 per share (the “Purchase Price”).  The Subscriber agrees to deliver to the
Company on the closing date (the “Closing Date”) designated by the
Company (as set forth in Paragraph 7 hereof), upon receipt of the stock
certificates representing the Common Stock, the Purchase Price by wire transfer
of United States dollars in immediately available funds to an account specified
by the Company in writing.

 

2.  The Subscriber understands
and agrees that the Common Stock is being offered in a transaction not
involving any public offering within the United States within the meaning of
the Securities Act of 1933, as amended (the “Securities Act”) and that
the Common Stock has not been registered under the Securities Act and, unless
so registered, may not be resold except as permitted in the following
sentence.  The Subscriber agrees, on its
own behalf and on behalf of each account for which it acquires any Common
Stock, that, if in the future it decides to offer, resell, pledge or otherwise
transfer such Common Stock, such Common Stock may be offered, resold, pledged
or otherwise transferred only (a) to the Company or a subsidiary thereof,
(b) pursuant to a registration statement that has been declared and is
effective under the Securities Act or (c) pursuant to any other available exemption
from the registration requirements of the Securities Act, subject in each of
the foregoing cases to any requirement of law that the disposition of
Subscriber’s property or the property of such investor account or accounts be
at all times within Subscriber’s or their control and subject to compliance
with any applicable state securities laws. 
The Subscriber understands that the registrar and transfer agent for the
Common Stock will not be required to accept for registration of transfer any
Common Stock, except upon presentation of evidence satisfactory to the Company
and the transfer agent that, unless such Common Stock is already registered
under the Securities Act, an exemption to the registration requirement under
the Securities Act and the rules and regulations thereunder have been complied
with.  The Subscriber further understands
that any certificates representing Common Stock acquired by it will bear a
legend reflecting the substance of this paragraph.  The Subscriber acknowledges, on its own
behalf and on behalf of any investor account for which it is purchasing the
Common Stock, that the Company reserves the right to restrict any offer, sale
or other transfer of the Common Stock pursuant to clause (c) above and to
require the completion, execution and delivery of (i) a letter from the
transferee substantially in the form of the Transferee’s Letter attached hereto
as Appendix A and (ii) an opinion of counsel satisfactory to the Company
that the proposed transfer does not require registration under the Securities
Act.  WITHOUT LIMITING THE FOREGOING,
UNLESS AND UNTIL THE COMPANY NOTIFIES YOU OTHERWISE IN WRITING, THE SUBSCRIBER
ACKNOWLEDGES AND AGREES, ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR
ACCOUNT FOR WHICH IT IS PURCHASING COMMON STOCK, THAT IT CANNOT AND WILL NOT
SELL OR OTHERWISE TRANSFER ANY COMMON STOCK WITHOUT (I) A COMPLETED AND
EXECUTED LETTER FROM THE PROSPECTIVE TRANSFEREE IN THE FORM OF THE TRANSFEREE’S
LETTER ATTACHED HERETO AS

 

 

APPENDIX
A AND THE DELIVERY OF SUCH TRANSFEREE’S LETTER TO THE COMPANY AND (II) AN
OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT THE PROPOSED TRANSFER DOES
NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT.

 

3.  The Subscriber hereby
represents and agrees as follows:

 

3.1                                 The Subscriber acknowledges that the Subscriber
must qualify under the standards described below, in order to qualify for the
purchase of Common Stock.

 

3.2                                 The Subscriber is an “accredited
investor,” as such term is defined in Regulation D under the Securities Act (an
“Accredited Investor”).

 

3.3                                 The Subscriber acknowledges that it is
able to bear the economic risk of an investment in the Common Stock.

 

3.4                                 The Subscriber acknowledges that the
Subscriber has prior investment experience, including investment in non-listed
and non-registered securities, or the Subscriber has employed the services of
an investment advisor to read all of the documents furnished or made available
by the Company both to the Subscriber or the investment advisor and to all
other prospective investors in the Common Stock and to evaluate the merits and
risks of such an investment on the Subscriber’s behalf.

 

3.5                                 The Subscriber has received such
information as the Subscriber deems necessary in order to make an investment
decision with respect to the Common Stock. 
The Subscriber acknowledges that the Subscriber and the Subscriber’s
advisor(s), if any, have had the right to ask questions of and receive answers
from the Company and its officers and directors, and to obtain such information
concerning the terms and conditions of this offering of the Common Stock, as
the Subscriber and the Subscriber’s advisor(s), if any, deem necessary to
verify the accuracy of any information that the Subscriber deems relevant
to making an investment in the Common Stock. 
The Subscriber represents and agrees that prior to the Subscriber’s
agreement to purchase Common Stock, the Subscriber and the Subscriber’s
advisor(s), if any, will have asked such questions, received such answers and
obtained such information as the Subscriber deems necessary to verify the
accuracy of any information that the Subscriber deems relevant to making an
investment in Common Stock.  The
Subscriber became aware of this offering of the Common Stock and the Common
Stock was offered to the Subscriber solely by means of direct contact between
the Subscriber and the Company.  The
Subscriber did not become aware of, nor were the shares of Common Stock offered
to the Subscriber by any other means, including, in each case, by any form of
general solicitation or general advertising. 
In making the decision to purchase the Common Stock, the Subscriber
relied solely on the information obtained by the Subscriber directly from the
Company as a result of any inquiries by the Subscriber or the Subscriber’s
advisor(s).

 

3.6                                 The Subscriber hereby acknowledges that
the offering of Common Stock has not been reviewed by, and the fairness of such
Common Stock has not been determined by, the United States Securities and
Exchange Commission (“Commission”) or any state regulatory authority, because
the Offering is intended to be a private placement pursuant to Section 4(2)
of the Securities Act and Regulation D promulgated thereunder.

 

3.7                                 The Subscriber understands that the
Common Stock has not been registered under the Securities Act or any state
securities or “blue sky” laws and is being sold in reliance on exemptions from
the registration requirements of the Securities Act and such laws.  The

 

2

 

Subscriber agrees
on the Subscriber’s own behalf and on behalf of any investor account for which
the Subscriber is purchasing Common Stock to offer, sell or otherwise transfer
any such Common Stock only in accordance with the terms thereof.

 

3.8                                 The Subscriber is acquiring the Common
Stock for investment purposes and not with a view to, or for offer or sale in
connection with, any distribution in violation of the Securities Act.  The Subscriber was not formed for the
specific purpose of acquiring the Common Stock.

 

3.9                                 The Subscriber is acquiring the Common
Stock for the Subscriber’s own account or for one or more accounts (each of
which is an Accredited Investor) as to each of which the Subscriber exercises
sole investment discretion and is authorized to make the representations, and
enter into the agreements, contained in this letter.

 

3.10                           The Subscriber consents to the placement
of a legend on the certificate evidencing the Common Stock, stating that such
Common Stock has not been registered under the Securities Act or any state
securities or “blue sky” laws and setting forth or referring to the
restrictions on transferability and sale thereof.  The Subscriber is aware that the Company will
make a notation in its appropriate records with respect to the restrictions on
the transferability of such Common Stock.

 

3.11                           The Subscriber, if acting in a
representative or fiduciary capacity, has full power and authority to execute
and deliver this Agreement, to make the representations and warranties
specified herein, and to consummate the transactions contemplated herein on
behalf of the subscribing partnership, trust, corporation or other entity for
which the Subscriber is acting and such partnership, trust, corporation, or
other entity has full right and power to subscribe for Common Stock and perform
its obligations hereunder.

 

The Subscriber is not an “affiliate” (as defined in Rule 144 under the
Securities Act) of the Company or acting on behalf of an affiliate of the
Company.

 

3.12                           The Subscriber is not and for so long as
it holds Common Stock will not be (i) an employee benefit plan (as defined
in Section 3(3) of ERISA), whether or not it is subject to Title I of
ERISA, including without limitation governmental and non-U.S. plans,
(ii) a plan described in Section 4975 of the Internal Revenue Code
(the “Code”), (iii) an entity whose underlying assets include plan
assets by reason of a plan’s investment in such entity (including but not
limited to an insurance company general account), or (iv) an entity that
otherwise constitutes a “benefit plan investor” within the meaning of the DOL
Regulation Section 2510.3-101 (29 C.F.R. Section 2510.3-101) (any of
the foregoing, a “Benefit Plan Investor”).

 

3.13                           The Subscriber acknowledges that the
Common Stock may not be purchased by or otherwise acquired by any Benefit Plan.

 

3.14                           The Subscriber (and any investor account
for which the Subscriber is purchasing Common Stock) agrees that the Company
may rely, and shall be protected in acting upon, any papers or other documents
which may be submitted to any of them in connection with the sale and
subsequent transfers of the Common Stock and which are reasonably believed by
them to be genuine and reasonably appear to have been signed or presented by
the proper party or parties.

 

3

 

3.15                           The Company is entitled to rely upon this
letter and is irrevocably authorized to produce this letter or a copy hereof to
any interested party in any administrative or legal proceeding or official
inquiry with respect to the matters covered hereby.

 

3.16                           The Subscriber acknowledges that it or
its advisor has had the opportunity to review that certain Registration Rights
Agreement dated the closing date by and between the Company and the Subscriber,
and agrees to the terms thereof. 
Execution of the signature page to this agreement will act as execution
of the registration rights agreement.

 

3.17                           The foregoing representations, warranties
and agreements, together with all other representations and warranties made or
given by the Subscriber to the Company in any other written statement or
document delivered in connection with the transactions contemplated hereby,
shall be true and correct in all respects on and as of the date of this
Agreement and the Closing Date, as if made on and as of each such date, and
shall survive each such date and if there should be any material change in such
information prior to the Closing Date of the sale of the Common Stock, the
Subscriber shall immediately furnish in writing such revised or corrected
information to the Company.  The
Subscriber understands that the Company will rely upon the accuracy and truth
of the foregoing representations, warranties and agreements, and the Subscriber
hereby consents to such reliance.

 

4.  The Seller hereby represents
and warrants as follows:

 

4.1                                 Since the date as of the Seller’s most
recently filed publicly available information, including current, quarterly and
annual reports and information, documents and other reports with respect to the
Company filed with the Commission pursuant to the Securities and Exchange Act
of 1934, as amended (the “Exchange Act”), furnished to the Subscriber or
otherwise publicly available (the “Information”), except as otherwise
stated therein, (A) there has been no material adverse change or any
development involving a prospective material adverse change in or affecting the
condition, financial or otherwise, or in the earnings, business affairs or
business prospects of the Seller, whether or not arising in the ordinary course
of business; provided, however, that a mere change in the price of the Company’s
Common Stock in the absence of any other event that would be considered a
material adverse event shall not be deemed a material adverse change for this
purpose, (B) there have been no transactions entered into by the Seller other
than (i) those in the ordinary course of business which are material with
respect to the Seller, or (ii) real estate and real estate related transactions
which are not deemed “in the ordinary course of business” for purposes of reporting
under the Exchange Act, but which are customary and consistent with the
business objectives of the Company and (C) other than regular quarterly
dividends, there has been no dividend or distribution of any kind declared,
paid or made by the Seller on any class of its shares of Common Stock.

 

4.2                                 The Seller has been duly incorporated and
is validly existing in good standing under the laws of
the State of Maryland.  The Seller has
the required corporate power and authority to conduct its business as described
in the Information; and the Seller is duly qualified as a foreign corporation
to transact business in each jurisdiction in which such qualification is
required, except where the failure to so qualify would not have a material
adverse effect on the condition, financial or otherwise, or the earnings,
business affairs or business prospects of the Seller.

 

4.3                                 As of the date hereof, the authorized
capital stock of the Seller consisted of 100,000,000 shares of Common Stock and
25,000,000 shares of preferred stock, par value $.001 per share, of which
13,312,500 shares of Common Stock are issued and outstanding.  The issued and outstanding shares of Common
Stock of the Seller have been duly authorized and validly

 

4

 

issued and are fully paid
and non-assessable; the shares of Common Stock to be offered pursuant to this
Agreement have been duly authorized and when issued and delivered as
contemplated hereby, will be validly issued, fully paid and non-assessable; the
issuance of the shares of Common Stock is not subject to preemptive or other
similar rights.  No order halting or
suspending trading in securities of the Seller nor prohibiting the sale of such
securities has been issued to and is outstanding against the Seller or its
directors, officers or promoters and no investigations or proceedings for such
purposes are pending or threatened.

 

4.4                                 The Seller is not in violation of its
organizational documents or in default in the performance or observance of any
material obligation, agreement, covenant or condition contained in any
contract, indenture, mortgage, loan agreement, note, lease or other instrument
or agreement to which the Seller is a party or by which it is bound, or to
which any of the property or assets of the Seller is subject where such
violation or default would have a material adverse effect on the condition,
financial or otherwise, or the earnings, business affairs or business prospects
of the Seller; and, the execution, delivery and performance of this Agreement,
and the issuance and delivery of the shares of Common Stock and the
consummation of the transactions contemplated herein have been duly authorized
by all necessary action and will not conflict with or constitute a material
breach of, or default under, or result in the creation or imposition of any
lien, charge or encumbrance upon any property or assets of the Seller pursuant
to any contract, indenture, mortgage, loan agreement, note, lease or other
instrument or agreement to which the Seller is a party or by which it or any of
them may be bound, or to which any of the property or assets of the Seller is
subject, nor will any such action result in any violation of the provisions of
the articles of incorporation, bylaws or other organizational documents of the
Seller or any applicable law, administrative regulation or administrative or
court decree.

 

4.5                                 The Seller is organized in conformity
with the requirements for qualification and, as of the date hereof and as of
the Closing, operates in a manner that qualifies it as a “real estate
investment trust” under the Internal Revenue Code of 1986, as amended, and the
rules and regulations thereunder and will be so qualified after giving effect
to the Offering.

 

4.6                                 The Seller is not, and upon the issuance
and sale of the Common Stock as herein contemplated and the application of the
proceeds therefrom will not be, required to be registered under the Investment
Company Act of 1940, as amended.

 

4.7                                 There is no action, suit, proceeding,
inquiry or investigation before or brought by any court or governmental agency
or body, domestic or foreign, now pending or, to the knowledge of the Seller,
threatened or contemplated, against or affecting the Seller, which is required
to be disclosed in the Information (other than as disclosed therein), or which
might result in any material adverse change in the condition, financial or
otherwise, or in the earnings, business affairs or business prospects of the
Seller, or which might materially and adversely affect the consummation of this
Agreement; all pending legal or governmental proceedings to which the Seller is
a party or of which its properties or assets is the subject which are not
described in the Information, including any ordinary routine litigation
incidental to its business, are, considered in the aggregate, not material to
the business of the Seller.

 

4.8                                 No authorization, approval or consent of
any court or United States federal or statement governmental authority or
agency is necessary in connection with the sale of the Common Stock hereunder.

 

4.9                                 No authorization, approval or consent of
the shareholders of the Seller is required or necessary in connection with the
sale of the Common Stock pursuant to the articles of

 

5

 

incorporation, bylaws or other organizational
documents of the Seller or the rules and regulations of the New York Stock
Exchange.

 

4.10                           The Common Stock sold in the Offering
will be issued and sold pursuant to the registration exemption provided by
Regulation D and Section 4(2) of the Securities Act as a transaction not
involving a public offering and the requirements of any other applicable state
securities laws and the respective rules and regulations thereunder.

 

4.11                           The Seller possesses such material
certificates, authorities or permits issued by the appropriate state, federal
or foreign regulatory agencies or bodies necessary to conduct the business now
conducted by them, and the Seller has not received any notice of proceedings
relating to the revocation or modification of any such certificate, authority
or permit which, singly or in the aggregate, if the subject of an unfavorable
decision, ruling or finding, would materially and adversely affect the
condition, financial or otherwise, or the earnings, business affairs or
business prospects of the Seller, nor to the knowledge of the Seller are any
such proceedings threatened or contemplated.

 

4.12                           This Agreement has been
duly authorized, executed and delivered by it and constitutes a legal, valid
and binding agreement of the Seller, enforceable against it in accordance with
its terms except as may be limited by (i) the effect of bankruptcy, insolvency,
reorganization, moratorium or other similar laws relating to or affecting the
rights or remedies of creditors or (ii) the effect of general principles of
equity, whether enforcement is considered in a proceeding in equity or at law
and the discretion of the court before which any proceeding therefor may be
brought

 

5.  To induce Seller to enter into
this Agreement, the Investment Adviser hereby represents and warrants that:

 

5.1                                 It is an “investment adviser” as such
term is defined under the Investment Advisers Act of 1940, as amended (the “Advisers
Act”), and is duly registered with the Commission.

 

5.2                                 It is duly organized,
validly existing and in good standing under the laws of its state of
organization. It is duly qualified to do business and is in good standing in
each jurisdiction where its ownership or leasing of property or assets or the conduct
of its business requires it to be so qualified. It has in effect all federal,
state, local and foreign governmental authorizations necessary for it to own or
lease its properties and assets and to carry on its business as it is now
conducted.

 

5.3                                 It has been duly
authorized to act as investment adviser on behalf of each of the Subscribers
listed under its name on Schedule A hereto.

 

5.4                                 It has the power and
authority to enter into and execute this Agreement on behalf of each of the
Subscribers listed under its name on Schedule A hereto.

 

5.5                                 This Agreement has been
duly executed and delivered by it and constitutes a legal, valid and binding
agreement of the Investment Adviser, enforceable against it in accordance with
its terms except as may be limited by (i) the effect of bankruptcy, insolvency,
reorganization, moratorium or other similar laws relating to or affecting the
rights or remedies of creditors or (ii) the effect of general principles of
equity, whether enforcement is considered in a proceeding in equity or at law
and the discretion of the court before which any proceeding therefor may be
brought.

 

6

 

5.6                                 In connection with the
execution, delivery or performance of this Agreement, it is not required to
make or obtain any consents or approvals of, or filings or registrations with,
any court, administrative agency or commission or other governmental authority
or instrumentality, including the Commission, or with any third party.

 

5.7                                 Neither the Investment
Adviser nor any “person associated with an investment adviser” (as defined in
the Advisers Act) thereof, as applicable, is ineligible pursuant to Section 203
of the Advisers Act to serve as an investment adviser or as an associated
person to a registered investment adviser or has committed any act enumerated
in Rule 206(4)-(4)(b) under the Advisers Act.

 

6.  As a condition to Closing,
(i) each of the representations and warranties of the parties hereto shall be
true and correct in all material respects, and (ii) the Subscribers shall have
received an opinion from Clifford Chance US LLP, dated as of the Closing Date,
substantially in the form attached hereto as Appendix B.

 

7.  Provided that the conditions
set forth in Paragraph 6 hereto have been met or waived at such time, the
transactions contemplated hereby shall be consummated upon four business days’
notice to the Investment Adviser but not later than January 3, 2005, or at
such other time and date as the parties hereto shall agree to in writing.

 

8.  This Agreement shall be
governed by and construed in accordance with the laws of the State of New
York.  The parties consent to the
exclusive jurisdiction of the United States District Court for the Southern
District of New York in connection with any civil action concerning any
controversy, dispute or claim arising out of or relating to this Agreement, or
any other agreement contemplated by, or otherwise with respect to, this
Agreement or the breach hereof, unless such court would not have subject matter
jurisdiction thereof, in which event the parties consent to the jurisdiction of
the State of New York.  The parties
hereby waive and agree not to asset in any litigation concerning this Agreement
the doctrine of forum non conveniens.

 

9.  This Agreement constitutes
the entire agreement between the parties hereto with respect to the subject
matter hereof and may be amended only in a writing that is executed by each of
the parties hereto.

 

10.  This Agreement shall inure
to the benefit of and be binding upon the Seller and the Subscribers.  Nothing in this Agreement is intended, or
shall be construed, to give any other person or entity any right hereunder or
by virtue hereof.  This Agreement may not
be assigned by the Seller or the Subscribers without the prior written consent
of the other party hereto.

 

11.  In the event that any
provisions hereof shall be determined to be invalid or unenforceable in any
respect, such determination shall not affect such provision in any other
respect or any other provision hereof, which shall remain in full force and
effect.  This Agreement may be executed
in separate counterparts, each of which shall be deemed an original and all of
which together shall be deemed to constitute one and the same instrument.

 

7

 

THE UNDERSIGNED UNDERSTANDS, WITHOUT
LIMITATION, THAT TRANSFERS OF THE COMMON STOCK ARE SUBJECT TO THE REQUIREMENT
THAT A TRANSFEREE’S LETTER AND OPINION LETTER BE DELIVERED TO THE COMPANY, AS
PROVIDED ABOVE IN SECTION 2.

 

THIS LETTER SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD
TO PRINCIPLES OF CONFLICTS OF LAWS THAT WOULD REQUIRE THE APPLICATION OF THE
LAW OF ANY OTHER STATE.

 

	
  Date:
                ,
  2004

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INVESTMENT ADVISER

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Print Name:

  Company Name:

  Title:

  Address:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GRAMERCY CAPITAL CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
				

 

8

 

Appendix A

 

TRANSFEREE’S
LETTER

 

Gramercy Capital Corp.

420 Lexington Avenue

New York, New York 10170

[Seller]

 

Dear Sirs:

 

In connection with the
undersigned’s proposed purchase of shares of common stock, par value $.001 per
share (the “Common Stock”), of Gramercy Capital Corp. (the “Company”)
from             (“Seller”),
the undersigned confirms and agrees that:

 

1.                                       The undersigned understands and agrees
that the Common Stock has been offered in a transaction not involving any
public offering within the United States within the meaning of the Securities
Act of 1933, as amended (the “Securities Act”) and that the Common Stock
has not been registered under the Securities Act and, unless so registered, may
not be resold except as permitted in the following sentence.  The undersigned agrees, on its own behalf and
on behalf of each account for which it acquires any Common Stock, that, if in
the future it decides to offer, resell, pledge or otherwise transfer such
Common Stock, such Common Stock may be offered, resold, pledged or otherwise
transferred only (a) to the Company or a subsidiary thereof,
(b) pursuant to a registration statement that has been declared and is
effective under the Securities Act or (c) pursuant to any other available
exemption from the registration requirements of the Securities Act, subject in
each of the foregoing cases to any requirement of law that the disposition of
undersigned’s property or the property of such investor account or accounts be
at all times within undersigned’s or their control and subject to compliance
with any applicable state securities laws. 
The undersigned understands that the registrar and transfer agent for
the Common Stock will not be required to accept for registration of transfer
any Common Stock, except upon presentation of evidence satisfactory to the
Company and the transfer agent that, unless such Common Stock is already
registered under the Securities Act, an exemption to the registration
requirement under the Securities Act and the rules and regulations thereunder
have been complied with.  The undersigned
further understands that any certificates representing Common Stock acquired by
it will bear a legend reflecting the substance of this paragraph.  The undersigned acknowledges, on its own
behalf and on behalf of any investor account for which it is purchasing the Common
Stock, that the Company reserves the right to restrict any offer, sale or other
transfer of the Common Stock pursuant to clause (c) above or to require
the completion, execution and delivery of a letter from the transferee
substantially in the form hereof and certifications and other information
satisfactory to the Company and the registrar and transfer agent and an opinion
of counsel satisfaction to the Company that the proposed transfer does not
require registration under the Securities Act. 
WITHOUT LIMITING THE FOREGOING, UNLESS AND UNTIL
THE COMPANY NOTIFIES YOU OTHERWISE IN WRITING, THE UNDERSIGNED ACKNOWLEDGES AND
AGREES, ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT IS
PURCHASING COMMON STOCK, THAT IT CANNOT AND WILL NOT SELL OR OTHERWISE TRANSFER
ANY

 

 

COMMON
STOCK WITHOUT (I) A COMPLETED AND EXECUTED LETTER
FROM THE PROSPECTIVE TRANSFEREE IN THE FORM OF THIS TRANSFEREE’S LETTER AND THE
DELIVERY OF SUCH TRANSFEREE’S LETTER TO THE COMPANY AND (II) AN OPINION OF
COUNSEL SATISFACTORY TO THE COMPANY THAT THE PROPOSED TRANSFER DOES NOT REQUIRE
REGISTRATION UNDER THE SECURITIES ACT.

 

2.  The undersigned is an “accredited
investor” as defined in Regulation D under the Securities Act.

 

3.  The undersigned has such
knowledge and experience in financial and business matters as to be capable of
evaluating the merits and risks of an investment in the Common Stock, and each
of the undersigned and any account for which the undersigned is acting is able
to bear the economic risk of such investment and can afford the complete loss
of such investment.

 

4.  The undersigned is acquiring
the Common Stock for investment purposes and not with a view to, or for offer
or sale in connection with, any distribution in violation of the Securities Act.  The undersigned was not formed for the
specific purpose of acquiring the Common Stock.

 

5.  The undersigned is acquiring
the Common Stock for the undersigned’s own account or for one or more accounts
(each of which is an Accredited Investor) as to each of which the undersigned
exercises sole investment discretion and is authorized to make the
representations, and enter into the agreements, contained in this letter.

 

6.  The undersigned has received
such information as the undersigned deems necessary in order to make an
investment decision with respect to the Common Stock.  The undersigned acknowledges that the
undersigned and the undersigned’s advisor(s), if any, have had the right to ask
questions of and receive answers from the Company and its officers and
directors, and to obtain such information concerning the terms and conditions
of this offering of the Common Stock, as the undersigned and the undersigned’s
advisor(s), if any, deem necessary to verify the accuracy of any information
that the undersigned deems relevant to making an investment in the Common
Stock.  The undersigned represents and
agrees that prior to the undersigned’s agreement to purchase Common Stock, the
undersigned and the undersigned’s advisor(s), if any, will have asked such
questions, received such answers and obtained such information as the
undersigned deems necessary to verify the accuracy of any information that the
undersigned deems relevant to making an investment in Common Stock.  The undersigned became aware of this offering
of the Common Stock and the Common Stock was offered to the undersigned solely
by direct contact between the undersigned and Seller.  The undersigned did not become aware of, nor
were the shares of Common Stock offered to the undersigned by any other means,
including, in each case, by any form of general solicitation or general
advertising.  In making the decision to
purchase the Common Stock, the undersigned relied solely on the information
filed with the Securities and Exchange Commission or obtained by the
undersigned directly from the Company as a result of any inquiries by the
undersigned or the undersigned’s advisor(s).

 

7.  The undersigned is not an “affiliate”
(as defined in Rule 144 under the Securities Act) of the Company or acting on
behalf of an affiliate of the Company.

 

 

8.  The undersigned is not and
for so long as it holds Common Stock will not be (i) an employee benefit
plan (as defined in Section 3(3) of ERISA), whether or not it is subject
to Title I of ERISA, including without limitation governmental and non-U.S.
plans, (ii) a plan described in Section 4975 of the Internal Revenue
Code, (iii) an entity whose underlying assets include plan assets by
reason of a plan’s investment in such entity (including but not limited to an
insurance company general account), or (iv) an entity that otherwise
constitutes a “benefit plan investor” within the meaning of the DOL Regulation Section 2510.3-101
(29 C.F.R. Section 2510.3-101) (any of the foregoing, a “Benefit Plan
Investor”).

 

9.  The undersigned acknowledges
that the Company, Seller and others will rely on the acknowledgments,
representations and warranties contained in this letter.  The undersigned agrees to promptly notify the
Company and Seller if any of the acknowledgments, representations and
warranties set forth herein are no longer
accurate.  The undersigned agrees that
each purchase by the undersigned of securities from Seller will constitute a
reaffirmation of the acknowledgments, representations and warranties herein (as
modified by any such notice) as of the time of such purchase.

 

10.  The Company and Seller are
entitled to rely upon this letter and are irrevocably authorized to produce
this letter or a copy hereof to any interested party in any administrative or
legal proceeding or official inquiry with respect to the matters covered
hereby.

 

 

THE UNDERSIGNED UNDERSTANDS, WITHOUT
LIMITATION, THAT TRANSFERS OF THE COMMON STOCK ARE SUBJECT TO THE REQUIREMENT
THAT A TRANSFEREE’S LETTER AND OPINION LETTER BE DELIVERED TO THE COMPANY, AS
PROVIDED ABOVE IN SECTION 1.

 

THIS LETTER SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF NEW YORK, WITHOUT REGARD TO
PRINCIPLES OF CONFLICTS OF LAWS THAT WOULD REQUIRE THE APPLICATION OF THE LAW
OF ANY OTHER STATE.

 

	
  Date:
                ,
          

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Print Name:

  Company Name:

  Title:

  Address:

  

 

 

Common Stock
to be purchased:

 

                                                                                                       
shares of Common Stock.

 

 

Schedule A

 

	
  Name,
  exactly as it should appear on stock certificate (if applicable):

  	
   

  
	
   

  
	
   

  	
   

  
	
  Address:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Address to
  which stock certificate should be delivered (if different from that above):

  	
   

  
	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Tax Identification No. or Social Security
  No.:

  	
   

  

 

 

Common Stock
to be purchased:

 

                                                                                                       
shares of Common Stock.

 

13Exhibit
10.2

 

Form of Registration Rights Agreement

 

REGISTRATION
RIGHTS AGREEMENT

 

This REGISTRATION RIGHTS
AGREEMENT (this “Agreement”),
dated as of December 3, 2004, is made and entered into by and among
Gramercy Capital Corp., a Maryland corporation (the “Company”),
and certain persons listed on Schedule 1 hereto (such persons, in
their capacity as holders of Registrable Securities, the “Holders”
and each the “Holder”).  Capitalized terms not otherwise defined
herein shall have the meanings ascribed to them in Section 1
hereto.

 

RECITAL

 

This AGREEMENT is made in
connection with the Subscription Agreement for the purchase of the Company’s
common stock, par value $0.001 per share (the “Common
Shares”) between the Company and each Holder, dated the date hereof.  In order to induce each Holder to purchase
Common Shares, the Company agrees to provide the registration rights provided
for in this Agreement to each Holder and its direct and indirect transferees.

 

AGREEMENT

 

NOW, THEREFORE, in
consideration of the premises and the mutual promises and covenants contained
in this Agreement, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto hereby
agree as follows:

 

Section 1.  Definitions. 
As used in this Agreement, the following terms shall have the following
meanings:

 

“Affiliate”  shall mean, when used with reference to a
specified Person, (i) any Person that directly or indirectly through one or
more intermediaries, Controls or is Controlled by or is under common Control
with the specified Person; (ii) any Person who, from time to time, is a member
of the Immediate Family of a specified Person; (iii) any Person who, from time
to time, is an officer or director or manager of a specified Person; or (iv)
any Person who, directly or indirectly, is the beneficial owner of 50% or more
of any class of equity securities or other ownership interests of the specified
Person, or of which the specified Person is directly or indirectly the owner of
50% or more of any class of equity securities or other ownership interests.

 

“Adverse Effect” shall have the meaning set forth in Section 3(e)
hereof.

 

“Agreement”
shall mean this Registration Rights Agreement as originally executed and as
amended, supplemented or restated from time to time.

 

“Board”
shall mean the Board of Directors of the Company.

 

“Business
Day”  shall mean each day
other than a Saturday, a Sunday or any other day on which banking institutions
in the State of New York are authorized or obligated by law or executive order
to be closed.

 

“Common
Shares” shall mean the shares of common stock of the Company,
par value $0.001 per share, purchased by Holders pursuant to the subscription
agreements dated the date hereof.

 

“Commission”
shall mean the Securities and Exchange Commission and any successor thereto.

 

 

“Company”
shall have the meaning set forth in the introductory paragraph hereof.

 

“Control”
(including the terms “Controlling,”
“Controlled by” and “under common Control with”) shall
mean the possession, direct or indirect, of the power to direct or cause the
direction of the management and policies of a Person through the ownership of
Voting Power, by contract or otherwise.

 

“Demand Party” shall have the meaning set forth in Section 3(a)
hereof.

 

“Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended
(or any corresponding provision of succeeding law) and the rules and
regulations thereunder.

 

“Holder”
shall mean each holder of the Common Shares listed in Schedule 1 hereto,
in his, her or its capacity as a holder of Registrable Securities.  For purposes of this Agreement, the Company
may deem and treat the registered holder of a Registrable Security as each
Holder and absolute owner thereof, unless notified to the contrary in writing
by the registered Holder thereof.

 

“Person”
shall mean any individual, partnership, corporation, limited
liability company, joint venture, association, trust, unincorporated
organization or other governmental or legal entity.

 

“Public
Offering” shall mean any offering of Registrable Securities to
the public pursuant to an effective registration statement filed with the
Commission under the Securities Act, or any comparable document under any
similar federal statute then in force.

 

“Registrable
Securities” shall mean the Common Shares; provided, however,
such Registrable Securities shall cease to be Registrable Securities when (A) a
registration statement with respect to the sale of such Registrable Securities
shall have become effective under the Securities Act and all such Registrable
Securities shall have been disposed of in accordance with such registration
statement, (B) such Registrable Securities shall have been sold in accordance
with Rule 144 (or any successor provision) under the Securities Act, (C) such
Registrable Securities become eligible to be publicly sold without limitation
as to amount or manner of sale pursuant to Rule 144(k) (or any successor
provision) under the Securities Act, or (D) such Registrable Securities have
ceased to be outstanding.

 

“Registration
Expenses” shall mean (i) the fees and disbursements of counsel
and independent public accountants for the Company incurred in connection with
the Company’s performance of or compliance with this Agreement, including the
expenses of any special audits or “comfort” letters required by or incident to
such performance and compliance, and any premiums and other costs of policies
of insurance obtained by the Company against liabilities arising out of the
sale of any securities and (ii) all registration, filing and stock exchange
fees, all fees and expenses of complying with securities or “blue sky” laws,
all fees and expenses of custodians, transfer agents and registrars, all
printing expenses, messenger and delivery expenses; provided, however,
“Registration Expenses” shall not include any out-of-pocket expenses of
each Holder, legal fees and expenses of any counsel to a Holder, transfer
taxes, underwriting or brokerage commissions or discounts associated with
effecting any sales of Registrable Securities that may be offered, which
expenses shall be borne by each Holder of Registrable Securities individually
or on a pro rata basis with respect to the
Registrable Securities so sold.

 

“Securities
Act” shall mean the Securities Act of 1933, as amended (or any
successor corresponding provision of succeeding law), and the rules and
regulations thereunder.

 

“Shelf
Registration Statement” shall have the meaning set forth in Section 2(a)
hereof.

 

“Stand-Off
Period” shall have the meaning set forth in Section 6
hereof.

 

“Voting
Power” shall mean voting securities or other voting interests
ordinarily (and apart from rights accruing under special circumstances) having
the right to vote in the election of board members or Persons performing
substantially equivalent tasks and responsibilities with respect to a
particular entity.

 

 

Section 2.  Shelf Registrations.

 

a.  Shelf Registration. 
The Company agrees to file with the Commission no later than August 31,
2005 and during a period of time that the issuer of the Registrable Securities
is eligible to use Form S-3 (or any similar or successor form), a registration
statement under the Securities Act on Form S-3 (or any similar or successor
form) for the offering on a continuous or delayed basis in the future of the
Registrable Securities (the “Shelf Registration
Statement”), and will use commercially reasonable efforts to
cause such Shelf Registration Statement to be declared effective by the
Commission as soon as practicable thereafter. 
The Shelf Registration Statement shall be on an appropriate form and the
registration statement and any form of prospectus included therein (or
prospectus supplement relating thereto) shall reflect the plan of distribution
or method of sale as each Holder may from time to time notify the Company.

 

b.  Effectiveness. 
The Company shall use commercially reasonable efforts to keep the Shelf
Registration Statement continuously effective for the period beginning on the
date on which the Shelf Registration Statement is declared effective and ending
on the date that all of the Registrable Securities registered under the Shelf
Registration Statement cease to be Registrable Securities.  During the period that the Shelf Registration
Statement is effective, the Company shall supplement or make amendments to the
Shelf Registration Statement, if required by the Securities Act or if
reasonably requested by each Holder (whether or not required by the form on
which the securities are being registered), including to reflect any specific plan
of distribution or method of sale, and shall use its commercially reasonable
efforts to have such supplements and amendments declared effective, if
required, as soon as practicable after filing.

 

Section 3.  Registration on Request.

 

a.  Request. 
If, at any time after August 31, 2005, the Company (i) is not
eligible to use Form S-3 or (ii) has failed to file the Shelf Registration, any
Holder or the Holders (individually or collectively, as the case may be, the “Demand Party”) may request in
writing that the Company effect the registration under the Securities Act of
all of the Common Shares held by such Demand Party.  Any such request will specify (i) the number
of Common Shares proposed to be sold and (ii) the intended method of
disposition thereof.  Subject to the
other provisions of this Section 3, the Company shall promptly give
written notice of such requested registration to each Holder that is not a
Demand Party, and thereupon will, as expeditiously as possible, use its
commercially reasonable efforts to effect the registration under the Securities
Act of the Common Shares which the Company has been so requested to register by
the Demand Party.

 

b.  Registration Statement Form. 
The Company shall select the registration statement form for any registration
pursuant to this Section 3; provided, however, that if any
registration requested pursuant to this Section 3 which is proposed by the
Company to be effected by the filing of a registration statement on Form S-3
(or any successor or similar short-form registration statement) shall be in
connection with an underwritten public offering, and if the managing
underwriter shall advise the Company in writing that, in its opinion, the use
of another form of registration statement is of material importance to the
success of such proposed offering, then such registration shall be effected on
such other form.

 

c.  Effective Registration Statement. 
A registration requested pursuant to this Section 3 will not be
deemed to have been effected:

 

(i)                                                                                     unless a registration statement with respect
thereto has become effective and remained effective in compliance with the
provisions of the Securities Act with respect to the disposition of all Common
Shares covered by such registration statement until the earlier of (x)

 

 

such
time as all of such Common Shares have been disposed of in accordance with the
intended methods of disposition thereof set forth in such registration
statement or (y) one-hundred-eighty (180) days after the effective date of such
registration statement, except with respect to any registration statement filed
pursuant to Rule 415 under the Securities Act, in which case the Company shall
use its commercially reasonable efforts to keep such registration statement
effective until such time as all of the Common Shares cease to be Registrable
Shares; provided,  that if the
failure of any such registration statement to become or remain effective in
compliance with this Section 3 is due solely to acts or omissions of the
applicable Holders, such registration requested pursuant to this Section 3
will be deemed to have been effected;

 

(ii)                                                                                  if after it has become effective, the
registration statement is interfered with by any stop order, injunction or
other order or requirement of the SEC or other governmental agency or authority
and does not thereafter become effective; or

 

(iii)                                                                               if the conditions to closing specified in
the underwriting agreement, if any, entered into in connection with such
registration are not satisfied or waived, other than by reason of a failure on
the part of the Demand Party or other Holders.

 

d.  Underwritten Offering.  At the
election of the Demand Party, a requested registration pursuant to this Section 3
may involve an underwritten offering, the investment banker(s), underwriter(s)
and manager(s) for such registration shall be selected by and, in such case,
the Holders of a majority of the Common Shares which the Company has been
requested to register; provided, however, that such investment
banker(s), underwriter(s) and manager(s) shall be reasonably satisfactory to
the Company.

 

e.  Priority in Requested Registrations. 
If a requested registration pursuant to this Section 3 involves an
underwritten offering and the managing underwriter advises the Company in
writing that, in its opinion, the number of securities to be included in such
registration would be likely to have an adverse effect on the price, timing or
distribution of the securities to be offered in such offering as contemplated
by the Holders (an “Adverse Effect”),
then the Company shall include in such registration Common Shares requested to
be included in such registration by the Demand Party and all other Holders of
Common Shares pursuant to this Section 3 on a pro rata
basis based on the number of Common Shares requested to be included, to the
extent that the managing underwriter believes that such Common Shares can be
sold in such offering without having an Adverse Effect.  If the managing underwriter of any
underwritten offering shall advise the Holders participating in a registration
pursuant to this Section 3 that the Common Shares covered by the
registration statement cannot be sold in such offering within a price range
acceptable to the Demand Party, then the Demand Party shall have the right to
notify the Company that it has determined that the registration statement be
abandoned or withdrawn, in which event the Company shall abandon or withdraw
such registration statement.

 

Section4.  Black-Out Periods.

 

Notwithstanding anything
herein to the contrary, the Company shall have the right, exercisable from time
to time by delivery of a notice authorized by the Board, on not more than two
occasions in any 12-month period, to require each Holder not to sell pursuant
to a registration statement or similar document under the Securities Act filed
pursuant to this Agreement or to suspend the effectiveness thereof if at the
time of the delivery of such notice, the Board has considered a plan to engage
no later than 60 days following the date of such notice in a firm commitment underwritten
public offering or if the Board has reasonably and in good faith determined
that such registration and offering, continued effectiveness or sale would
materially interfere with any material transaction involving the Company; provided,
however, that in no event shall the black-out period extend for more
than 60 days on any such

 

 

occasion. 
The Company, as soon as practicable, shall (i) give each Holder prompt
written notice in the event that the Company has suspended sales of Registrable
Securities pursuant to this Section 3, (ii) give each Holder prompt
written notice of the completion of such offering or material transaction and
(iii) promptly file any amendment necessary for any registration statement or
prospectus of each Holder in connection with the completion of such event.

 

The Holder agrees by
acquisition of the Registrable Securities that upon receipt of any notice from
the Company of the happening of any event of the kind described in this Section 3,
such Holder will forthwith discontinue its disposition of Registrable
Securities pursuant to the registration statement relating to such Registrable
Securities until such Holder’s receipt of the notice of completion of such
event.

 

Section 5.  Registration Procedures.

 

a.  In connection with the filing of any
registration statement as provided in this Agreement, the Company shall, as
expeditiously as reasonably practicable:

 

(i)                                                                                     prepare and, in any event within thirty
(30) days after the end of the period within which a request for registration
may be given to the Company, file with the Commission the requisite
registration statement (including a prospectus therein and any supplement
thereto) to effect such registration and use its commercially reasonable
efforts to cause such registration statement to become effective; provided,
however, that before filing such registration statement or any
amendments or supplements thereto, the Company will furnish copies of all such
documents proposed to be filed to counsel for the sellers of Registrable Securities
covered by such registration statement and provide reasonable time for such
sellers and their counsel to comment upon such documents if so requested by a
Holder;

 

(ii)                                                                                  prepare and file with the Commission such
amendments and supplements to such registration statement and the prospectus
used in connection therewith as may be necessary to maintain the effectiveness
of such registration and to comply with the provisions of the Securities Act
with respect to the disposition of all securities covered by such registration
statement during the period in which such registration statement is required to
be kept effective;

 

(iii)                                                                               furnish to each Holder of the securities
being registered, without charge, such number of conformed copies of such
registration statement and of each such amendment and supplement thereto (in
each case including all exhibits) other than those which are being incorporated
into such registration statement by reference, such number of copies of the
prospectus contained in such registration statements (including each complete
prospectus and any summary prospectus) and any other prospectus filed under
Rule 424 under the Securities Act in conformity with the requirements of the
Securities Act, and such other documents, including documents incorporated by
reference, as each Holder may reasonably request;

 

(iv)                                                                              use its commercially reasonable efforts
to register or qualify all Registrable Securities under such other securities
or “blue sky” laws of such jurisdictions as each Holder and the underwriters of
the securities being registered, if any, shall reasonably request, to keep such
registration or qualification in effect for so long as such registration
statement remains in effect, and take any other action which may be reasonably
necessary or advisable to enable each Holder to consummate the disposition in
such jurisdiction of the securities owned by each Holder, except that the
Company shall not for any such purpose be required to qualify generally to do
business as a foreign company or to register as a broker or dealer in any
jurisdiction where it would not otherwise be required to qualify but for this Section 4(a)(iv),
or to consent to general service of process in any such jurisdiction, or to be
subject to any material tax obligation in any such jurisdiction where it is not
then so subject;

 

 

(v)                                                                                 promptly notify each Holder at any time
when the Company becomes aware that a prospectus relating thereto is required
to be delivered under the Securities Act, of the happening of any event as a result
of which the prospectus included in such registration statement, as then in
effect, includes an untrue statement of a material fact or omits to state any
material fact required to be stated therein or necessary to make the statements
therein not misleading in light of the circumstances under which they were
made, and, at the request of each Holder, promptly prepare and furnish to each
Holder a reasonable number of copies of a supplement to or an amendment of such
prospectus as may be necessary so that, as thereafter delivered to the
purchasers of such securities, such prospectus shall not include an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading in
the light of the circumstances under which they were made;

 

(vi)                                                                              use its commercially reasonable efforts
to comply or continue to comply in all material respects with the Securities
Act and the Exchange Act and with all applicable rules and regulations of the
Commission thereunder so as to enable each Holder to sell its Registrable
Securities pursuant to Rule 144 promulgated under the Securities Act, as
further agreed to in Section 8 hereof;

 

(vii)                                                                           make available to its security holders,
as soon as reasonably practicable, an earnings statement covering the period of
at least 12 months, but not more than 18 months, beginning with the first
calendar month after the effective date of such registration statement, which
earnings statement shall satisfy the provisions of Section 11(a) of the
Securities Act;

 

(viii)                                                                        provide a transfer agent and registrar and a
CUSIP number for all Registrable Securities covered by such registration
statement not later than the effective date of such registration statement;

 

(ix)                                                                                use its commercially reasonable efforts
to cooperate with each Holder to facilitate the timely preparation and delivery
of certificates representing Registrable Securities to be sold and not bearing
any Securities Act legend; and enable certificates for such Registrable
Securities to be issued for such number of shares and registered in such names
as each Holder may reasonably request in writing at least two Business Days
prior to any sale of Registrable Securities;

 

(x)                                                                                   use its commercially reasonable efforts
to list all Registrable Securities covered by such registration statement on
any securities exchange or national quotation system on which any such class of
securities is then listed or quoted and cause to be satisfied all requirements
and conditions of such securities exchange or national quotation system to the
listing or quoting of such securities that are reasonably within the control of
the Company including, without limitation, registering the applicable class of
Registrable Securities under the Exchange Act, if appropriate, and using  commercially reasonable efforts to cause such
registration to become effective pursuant to the rules of the Commission;

 

(xi)                                                                                in connection with any sale, transfer or
other disposition by each Holder of any Registrable Securities pursuant to Rule
144 promulgated under the Securities Act, use its commercially reasonable
efforts to cooperate with such Holder to facilitate the timely preparation and
delivery of certificates representing the Registrable Securities to be sold and
not bearing any Securities Act legend, and enable certificates for such
Registrable Securities to be for such number of shares and registered in such
name as each Holder may reasonably request in writing at least three Business
Days prior to any sale of Registrable Securities;

 

 

(xii)                                                                             notify each Holder, promptly after it
shall receive notice thereof, of the time when such registration statement, or
any post-effective amendments to the registration statement, shall have become
effective, or a supplement to any prospectus forming part of such registration
statement has been filed or when any document is filed with the Commission
which would be incorporated by reference into the prospectus;

 

(xiii)                                                                          notify each Holder of any request by the
Commission for the amendment or supplement of such registration statement or
prospectus for additional information;

 

(xiv)                                                                         advise each Holder, promptly after it
shall receive notice or obtain knowledge thereof, of (A) the issuance of any
stop order, injunction or other order or requirement by the Commission
suspending the effectiveness of such registration statement or the initiation
or threatening of any proceeding for such purpose and use all commercially
reasonable efforts to prevent the issuance of any stop order, injunction or
other order or requirement or to obtain its withdrawal if such stop order,
injunction or other order or requirement should be issued, (B) the suspension
of the registration of the subject shares of the Registrable Securities in any
state jurisdiction and (C) the removal of any such stop order, injunction or
other order or requirement or proceeding or the lifting of any such suspension;
and

 

(xv)                                                                            use its commercially reasonable efforts
(taking into account the interests of the Company) to make available the
executive officers of the Company to participate with the Holders of
Registrable Securities and any underwriters in “road shows” or other selling
efforts that may be reasonably requested by the Holders in connection with the
methods of distribution for the Registrable Securities.

 

b.  In
connection with the filing of any registration statement covering Registrable
Securities, each Holder shall furnish in writing to the Company such
information regarding itself (and any of its Affiliates), the Registrable
Securities to be sold, the intended method of distribution of such Registrable
Securities and such other information requested by the Company as is necessary
or advisable for inclusion in the registration statement relating to such
offering pursuant to the Securities Act. 
Such writing shall expressly state that it is being furnished to the
Company for use in the preparation of a registration statement, preliminary
prospectus, supplementary prospectus, final prospectus or amendment or supplement
thereto, as the case may be.

 

Each Holder agrees by
acquisition of the Registrable Securities that (i) upon receipt of any notice
from the Company of the happening of any event of the kind described in Section 4(a)(v),
such Holder will forthwith discontinue its disposition of Registrable
Securities pursuant to the registration statement relating to such Registrable
Securities until such Holder’s receipt of the copies of the supplemented or
amended prospectus contemplated by Section 4(a)(v); (ii) upon receipt
of any notice from the Company of the happening of any event of the kind
described in clause (A) of Section 4(a)(xiv), such Holder will
discontinue its disposition of Registrable Securities pursuant to such
registration statement until such Holder’s receipt of the notice described in
clause (C) of Section 4(a)(xiv); and (iii) upon receipt of any
notice from the Company of the happening of any event of the kind described in
clause (B) of Section 4(a)(xiv), each Holder will discontinue its
disposition of Registrable Securities pursuant to such registration statement
in the applicable state jurisdiction(s) until such Holder’s receipt of the
notice described in clause (C) of Section 4(a)(xiv).

 

Section 6.  Indemnification.

 

a.  Indemnification by the Company. The Company agrees to indemnify and
hold harmless each Holder, its partners, officers, directors, trustees,
stockholders, employees, agents and investment advisers, and each Person, if
any, who controls each Holder within the meaning of

 

 

the
Securities Act or the Exchange Act, together with the partners, officers,
directors, trustees, stockholders, employees, agents and investment advisers of
such controlling person, against any losses, claims, damages, liabilities and
expenses (including, without limitation, reasonable attorneys’ fees), joint or
several, to which each Holder or any such indemnitees may become subject under
the Securities Act, the Exchange Act, any federal or state law or otherwise,
insofar as such losses, claims, damages, liabilities and expenses (or actions
or proceedings, whether commenced or threatened, in respect thereof) arise out
of or are based upon any untrue statement or alleged untrue statement of any
material fact contained in the registration statement under which such Registrable
Securities were registered and sold under the Securities Act, any preliminary
prospectus, final prospectus or summary prospectus contained therein, or any
amendment or supplement thereto, or arising out of or based upon any omission
or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading or any violation of
the Securities Act or state securities laws or rules thereunder by the Company
relating to any action or inaction by the Company in connection with such
registration, and the Company will reimburse each Holder for any reasonable
legal or any other expenses reasonably incurred by it in connection with investigating
or defending any such loss, claim, liability, action or proceedings; provided,
however, that the Company shall not be liable in any such case to a
Holder to the extent that any such loss, claim, damage, liability (or action or
proceeding in respect thereof) or expense arises out of or is based upon an
untrue statement or alleged statement or omission or alleged omission made in
such registration statement, any such preliminary prospectus, final prospectus,
summary prospectus, amendment or supplement in reliance upon and in conformity
with written information furnished to the Company by such Holder specifically
stating that it is for use in the preparation thereof; and provided, further,
that the Company shall not be liable to such Holder or any other Person who
controls each Holder within the meaning of the Securities Act or the Exchange
Act in any such case to the extent that any such loss, claim, damage, liability
(or action or proceeding in respect thereof) or expense arises out of such
Person’s failure to send or give a copy of the final prospectus or supplement
to the Persons asserting an untrue statement or alleged untrue statement or
omission or alleged omission at or prior to the written confirmation of the
sale of Registrable Securities to such Person if such statement or omission was
corrected in such final prospectus or supplement.  Such indemnity shall remain in full force and
effect regardless of any investigation made by or on behalf of each Holder or
any such controlling Person and shall survive the transfer of such securities
by each Holder.

 

b.  Indemnification by each Holder. The Holder agrees to indemnify and hold
harmless (in the same manner and to the same extent as set forth in Section 5(a))
the Company, each member of the Board, each officer, employee, agent and
investment adviser of the Company and each other Person, if any, who controls
any of the foregoing within the meaning of the Securities Act or the Exchange
Act, with respect to any untrue statement or alleged untrue statement of a
material fact in or omission or alleged omission to state a material fact from
such registration statement, any preliminary prospectus, final prospectus or
summary prospectus contained therein, or any amendment or supplement thereto,
if such untrue statement or alleged untrue statement or omission or alleged
omission was made in reliance upon and in conformity with written information
furnished to the Company by such Holder regarding such Holder giving such
indemnification specifically stating that it is for use in the preparation of
such registration statement, preliminary prospectus, final prospectus, summary
prospectus, amendment or supplement. 
Such indemnity shall remain in full force and effect regardless of any
investigation made by or on behalf of the Company or any such Board member,
officer, employee, agent, investment adviser or controlling Person and shall
survive the transfer of such securities by any Holder.  The obligation of a Holder to indemnify will
be several and not joint, among the Holders of Registrable Securities and the
liability of each such Holder of Registrable Securities will be in

 

 

proportion to and limited in all events to the net amount
received by such Holder from the sale of Registrable Securities pursuant to
such registration statement.

 

c.  Notices of Claims, etc. 
Promptly after receipt by an indemnified party of notice of the
commencement of any action or proceeding involving a claim referred to in the
preceding paragraphs of this Section 5, such indemnified party
will, if a claim in respect thereof is to be made against an indemnifying
party, give written notice to the latter of the commencement of such action; provided,
however, that the failure of any indemnified party to give notice as
provided herein shall not relieve the indemnifying party of its obligations
under the preceding paragraphs of this Section 5, except to the
extent that the indemnifying party is actually prejudiced by such failure to
give notice.  In case any such action is
brought against an indemnified party, unless in such indemnified party’s
reasonable judgment a conflict of interest between such indemnified and
indemnifying parties may exist in respect of such claim, the indemnifying party
shall be entitled to assume the defense thereof, for itself, if applicable,
together with any other indemnified party similarly notified, and after notice
from the indemnifying party to such indemnified party of its election so to
assume the defense thereof, the indemnifying party shall not be liable to the
indemnified party for any legal or other expenses subsequently incurred by the
latter in connection with the defense thereof.

 

d.  Indemnification Payments.  To the extent
that the indemnifying party does not assume the defense of an action brought
against the indemnified party as provided in Section 5(c), the
indemnified party (or parties if there is more than one) shall be entitled to
the reasonable legal expenses of common counsel for the indemnified party (or
parties).  In such event, however, the
indemnifying party will not be liable for any settlement effected without the
written consent of such indemnifying party, which consent shall not be
unreasonably withheld.  The
indemnification required by this Section 5 shall be made by
periodic payments of the amount thereof during the course of an investigation
or defense, as and when bills are received or expense, loss, damage or
liability is incurred.  The indemnifying
party shall not settle any claim without the consent of the indemnified party
unless such settlement involves a complete release of such indemnified party
without any admission of liability by the indemnified party.

 

e.  Contribution. 
If, for any reason, the foregoing indemnity is unavailable, or is
insufficient to hold harmless an indemnified party, then the indemnifying party
shall contribute to the amount paid or payable by the indemnified party as a
result of the expense, loss, damage or liability, (i) in such proportion as is
appropriate to reflect the relative fault of the indemnifying party on the one
hand and the indemnified party on the other (determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact
or omission relates to information supplied by the indemnifying party or the indemnified
party and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such untrue statement or omission) or (ii) if
the allocation provided by subclause (i) above is not permitted by applicable
law or provides a lesser sum to the indemnified party than the amount  hereinafter calculated, in the proportion as
is appropriate to reflect not only the relative fault of the indemnifying party
and the indemnified party, but also the relative benefits received by the
indemnifying party on the one hand and the indemnified party on the other, as
well as any other relevant equitable considerations.  No indemnified party guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities
Act) shall be entitled to contribution from any indemnifying party who was not
guilty of such fraudulent misrepresentation, and the liability for contribution
of each Holder of Registrable Securities will be in proportion to and limited
in all events to the net amount received by each Holder from the sale of
Registrable Securities pursuant to such registration statement.

 

 

Section 7.  Market Stand-Off Agreement.  The Holder hereby agrees that it shall not,
to the extent requested by the Company or an underwriter of securities of the
Company, directly or indirectly sell, offer to sell (including without
limitation any short sale), grant any option or otherwise transfer or dispose
of any Registrable Securities (other than to donees or partners of each Holder
who agree to be similarly bound) within seven days prior to and for up to 90
days following the effective date of a registration statement of the Company
filed under the Securities Act (except the Shelf Registration Statement filed
for the benefit of the Holders pursuant to this Agreement) or the date of an
underwriting agreement with respect to an underwritten public offering of the
Company’s securities (the “Stand-Off Period”);
provided, however, that:

 

a.  with respect to the Stand-Off Period, such
agreement shall not be applicable to the Registrable Securities to be sold on
each Holder’s behalf to the public in an underwritten offering pursuant to such
registration statement;

 

b.  all
executive officers and directors of the Company then holding Common Stock of
the Company shall enter into similar agreements; and

 

c.  each Holder shall be allowed any concession
or proportionate release allowed to any (i) officer, or (ii) director of the
Company that entered into similar agreements.

 

In order to enforce the
foregoing covenant, the Company shall have the right to place restrictive
legends on the certificates representing the Registrable Securities subject to
this Section 6 and to impose stop transfer instructions with respect to
the Registrable Securities and such other Common Shares of each Holder (and the
Common Shares or securities of every other person subject to the foregoing
restriction) until the end of such period.

 

Once a registration
statement covering the Registrable Securities is effective, the provisions of
this Section 7 shall be of no further force and effect.

 

Section 8.  Covenants Relating To Rule 144.  At such times as the Company is obligated to
file reports in compliance with either Section 13 or 15(d) of the Exchange
Act, the Company covenants that it will file any reports required to be filed
by it under the Securities Act and the Exchange Act and that it will take such
further action as each Holder may reasonably request, all to the extent
required from time to time to enable each Holder to sell Registrable Securities
without registration under the Securities Act within the limitation of the
exemptions provided by (a) Rule 144 under the Securities Act, as such rule may
be amended from time to time or (b) any similar rule or regulation hereafter adopted
by the Commission.  Upon the request of
each Holder, the Company will deliver to each Holder a written statement as to
whether it has complied with such requirements.

 

Section 9.  Miscellaneous.

 

a.  Termination; Survival.  The rights of
each Holder under this Agreement shall terminate upon the date that all of the
Registrable Securities held by each Holder may be sold during any three-month
period in a single transaction or series of transactions without volume
limitations under Rule 144 (or any successor provision) under the Securities
Act.  Notwithstanding the foregoing, the
obligations of the parties under Section 5 and paragraphs (d), (e) and (g)
of this Section 8 shall survive the termination of this Agreement.

 

b.  Expenses. 
All Registration Expenses incurred in connection with any Shelf
Registration Statement (including any prospectus or prospectus supplement)
prepared and/or filed pursuant to this Agreement shall be borne by the Company,
whether or not any registration statement related thereto becomes effective.

 

 

c.  Counterparts. 
This Agreement may be executed in one or more counterparts, all of which
shall be considered one and the same agreement, and shall become effective when
one or more such counterparts have been signed by each of the parties and
delivered to each of the other parties.

 

d.  Applicable Law; Jurisdiction. 
This Agreement shall be governed by and construed in accordance with the
laws of the State of New York.  The
parties consent to the exclusive jurisdiction of the United States District
Court for the Southern District of New York in connection with any civil action
concerning any controversy, dispute or claim arising out of or relating to this
Agreement, or any other agreement contemplated by, or otherwise with respect
to, this Agreement or the breach hereof, unless such court would not have
subject matter jurisdiction thereof, in which event the parties consent to the
jurisdiction of the State of New York. 
The parties hereby waive and agree not to assert in any litigation
concerning this Agreement the doctrine of forum non conveniens.

 

e.  Waiver Of Jury Trial. 
THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY
JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT AND FOR ANY
COUNTERCLAIM THEREIN.

 

Prior Agreement;
Construction; Entire Agreement.  This
Agreement, including the exhibits and other documents referred to herein (which
form a part hereof), constitutes the entire agreement of the parties with
respect to the subject matter hereof, and supersedes all prior agreements and
understandings between the parties, and all such prior agreements and
understandings are merged herein and shall not survive the execution and
delivery hereof.

 

Notices. All notices or other communications required or
permitted to be given hereunder shall be in writing and shall be delivered by
hand or sent, postage prepaid, by registered, certified or express mail or
reputable overnight courier service or be telecopier and shall be deemed given
when so delivered by hand or, if mailed, three days after mailing (one Business
Day in the case of express mail or overnight courier service), addressed as
follows:

 

	
  If to each Holder:

  	
  To the address indicated for such Holder in
  Schedule 1 hereto.

  
	
   

  	
   

  
	
  If to the Company:

  	
  Gramercy Capital Corp.

  420 Lexington Avenue

  New York, New York 10170

  Attn: Robert R. Foley

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  Clifford Chance US LLP

  31 West 52nd Street

  New York, New York 10019

  Attention:  Robert E. King Jr.

  Facsimile:  212-878-8375

  

 

Successors and Assigns.  This Agreement
shall inure to the benefit of and be binding upon the successors and permitted
assigns of each of the parties and shall inure to the benefit of each
Holder.  The Company may assign its
rights or obligations hereunder to any successor to the

 

 

Company’s business or with the prior written consent
of each Holder.  Notwithstanding the foregoing, no assignee of
the Company shall have any of the rights granted under this Agreement until
such assignee shall acknowledge its rights and obligations hereunder by a
signed written agreement pursuant to which such assignee accepts such rights
and obligations.  Each Holder may assign
its rights or obligations hereunder in whole or in part in connection with the
transfer, sale or other disposition of its Common Shares so long as such
assignee shall acknowledge its rights and obligations hereunder by a signed
written agreement pursuant to which such assignee accepts such rights and
obligations, upon which assignee shall be deemed to be a “Holder” for all
purposes hereunder.

 

f.  Headings. 
Headings are included solely for convenience of reference and if there
is any conflict between headings and the text of this Agreement, the text shall
control.

 

g.  Amendments And Waivers. 
The provisions of this Agreement may be amended or waived at any time
only by the written agreement of the Company and the Holders of a majority of
the Registrable Securities.  Any waiver,
permit, consent or approval of any kind or character on the part of each Holder
of any provision or condition of this Agreement must be made in writing and
shall be effective only to the extent specifically set forth in writing.  Any amendment or waiver effected
in accordance with this paragraph shall be binding upon each Holder of
Registrable Securities and the Company.

 

h.  Interpretation; Absence Of Presumption. 
For the purposes hereof, (i) words in the singular shall be held to
include the plural and vice versa and words of one gender shall be held to
include the other gender as the context requires, (ii) the terms “hereof,” “herein,”
and “herewith” and words of similar import shall, unless otherwise stated, be
construed to refer to this Agreement as a whole and not to any particular
provision of this Agreement, and Section, paragraph or other references are to
the Sections, paragraphs, or other references to this Agreement unless
otherwise specified, (iii) the word “including” and words of similar import
when used in this Agreement shall mean “including, without limitation,” unless
the context otherwise requires or unless otherwise specified, (iv) the word “or”
shall not be exclusive and (v) provisions shall apply, when appropriate, to
successive events and transactions.

 

This Agreement
shall be construed without regard to any presumption or rule requiring
construction or interpretation against the party drafting or causing any
instruments to be drafted.

 

i.  Severability. 
If any provision of this Agreement shall be or shall be held or deemed
by a final order by a competent authority to be invalid, inoperative or
unenforceable, such circumstance shall not have the effect of rendering any
other provision or provisions herein contained invalid, inoperative or
unenforceable, but this Agreement shall be construed as if such invalid,
inoperative or unenforceable provision had never been contained herein so as to
give full force and effect to the remaining such terms and provisions.

 

j.  Specific Performance; Other Rights. 
The parties recognize that various other rights rendered under this
Agreement are unique and, accordingly, the parties shall, in addition to such
other remedies as may be available to them at law or in equity, have the right
to enforce the rights under this Agreement by actions for injunctive relief and
specific performance.

 

k.  Further Assurances. 
In connection with this Agreement, as well as all transactions and
covenants contemplated by this Agreement, each party hereto agrees to execute
and deliver or cause to be executed and delivered such additional documents and
instruments and to perform or cause to be performed such additional acts as may
be necessary or appropriate to effectuate,

 

 

carry out and perform all of the terms, provisions and
conditions of this Agreement and all such transactions and covenants
contemplated by this Agreement.

 

1.  No Waiver.  The waiver of any breach of any term or
condition of this Agreement shall not operate as a waiver of any other breach
of such term or condition or of any other term or condition, nor shall any
failure to enforce any provision hereof operate as a waiver of such provision
or of any other provision hereof.

 

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

 

	
   

  	
  GRAMERCY CAPITAL CORP.

  
	
   

  	
  a Maryland corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  HOLDERS

  
	
   

  	
   

  
	
   

  	
  [See subscription agreement signatures]

  

 

 

Schedule 1

 

THE HOLDERS

 

	
  Name of the Holder

  	
   

  	
  Number of

  Common Shares

  Purchased

  	
   

  	
  Address of the Holder

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