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Exhibit 10.5    
    

 
  OUTSOURCE AGREEMENT    
    

THIS
OUTSOURCE AGREEMENT (this "Agreement"), dated as of [    ], 2004, is made by and between GKK Manager LLC, a Delaware limited liability company (the "Manager"),
and SL Green Operating Partnership, L.P., a Maryland limited partnership ("SL Green"). 

RECITALS  

WHEREAS,
Manager provides certain management services to Gramercy Capital Corp. (the "Parent") and Gramercy Capital OP LP (the "Operating Partnership" and collectively with the Parent, the "Company")
pursuant to that certain Management Agreement, dated as of the date hereof (the "Management Agreement"), by and among the Company and the Manager; 

WHEREAS,
Manager desires to avail itself of the experience, advice and assistance of SL Green to provide various services related to the Parent's obligations as a publicly registered and traded
company; and 

WHEREAS,
SL Green is willing to perform the services described below on the terms and conditions hereinafter set forth. 

WHEREAS,
the Company has agreed in the Management Agreement to reimburse Manager for certain Expenses (as defined in the Management Agreement) incurred in connection with the Services obtained from SL
Green or other third party service providers. 

AGREEMENT  

NOW
THEREFORE, in consideration of the mutual agreements herein set forth and intending to be legally bound, the parties hereto agree as follow: 

	1.
	Services.    SL Green agrees to provide the following services (the "Services") to the Manager upon its request:

	(i)
	assisting
the Company in complying with all regulatory requirements, including, but not limited to, any filings, periodic reporting, press releases and communications, applicable to
the Company required under the Securities Act of 1933, as amended;

	(ii)
	assisting
the Company in complying with all regulatory requirements applicable to the Company in respect of its business activities, including preparing or causing to be prepared all
financial statements required under applicable regulations and contractual undertakings and all reports and documents, if any, required under the Securities Exchange Act of 1934, as amended;

	(iii)
	assisting
the Company in complying with all regulatory requirements applicable to the Company required by the New York Stock Exchange;

	(iv)
	assisting
the Company with all regulatory requirements applicable to the Company required by the Sarbanes-Oxley Act of 2002;

	(v)
	communicating
on the Company's behalf with the holders of any of the Company's equity or debt securities as required to satisfy the reporting and other requirements of any
governmental bodies or agencies or trading markets and to maintain effective relations with such holders;

	(vi)
	administering
the issuance of any stock under the stock incentive plan to the Company's executive officers or the employees of the Manger; and

	(vii)
	performing
such other services as may be required from time to time for management and other activities relating to the Services as the Manager shall reasonably request. 

 

	2.
	Term.    This Agreement shall remain in full force and effect throughout the term of the Management Agreement as extended in
accordance therewith and terminate simultaneously with the expiration or earlier termination of the Management Agreement, except that SL Green may terminate this Agreement at any time on
60 days notice to Manager.

	3.
	Fees.    For the Services, SL Green will receive from Manager an annual fee, equal to $1,250,000 per year, payable in monthly
installments in arrears on or before the fifth day after the month end. The amount of the fee hereunder shall be increased by 3% over the prior year's charge in each year after the first year. Manager
shall be directly obligated to pay accrued fees hereunder, whether or not reimbursed by the Company for such fees as contemplated by the Management Agreement.

	4.
	Confidentiality. 
	(a)
	SL
Green shall keep confidential any nonpublic information obtained relating to its performance of the Services and shall not disclose any such information (or use the same except in
furtherance of its duties under this Agreement), except as permitted or contemplated by the Management Agreement. The provisions of this Section 4(a) shall survive the expiration or earlier
termination of this Agreement.

	(b)
	Promptly
after the expiration or earlier termination of this Agreement, SL Green shall return to Manager all confidential and proprietary information provided to or obtained by SL
Green pursuant to or in connection with this Agreement and the performance of the Services hereunder, including all copies and extracts thereof in whatever form, in its possession or under its
control.

	5.
	Notices.    All notices, requests, demands and other communications required or permitted hereunder shall be in writing and
mailed, faxed or delivered by hand or courier service: 

(a)
If to Manager, to: 

GKK
Manager LLC

420 Lexington Avenue

New York, New York 10170

Attention: Office of General Counsel

Facsimile: (212) 216-1785 

(b)
If to SL Green, to: 

SL
Green Operating Partnership, L.P.

420 Lexington Avenue

New York, New York 10170

Attention: General Counsel

Facsimile: (212) 216-1785 

	6.
	Cooperation; Further Assistance.    Each party hereto shall cooperate with and provide assistance to the other parties
consistent with the terms and conditions hereof to enable (a) the full performance of all obligations hereunder, and (b) the review and audit of books and records as they relate to the
provision of the Services; such cooperation and assistance to include, without limitation, providing the other parties and their respective representatives and agents (including, without limitation,
outside auditors) with reasonable access, during normal business hours and upon reasonable advance notice, to its employees, representatives and agents and its books, records, offices and properties
relating to the Services.

	7.
	Entire Agreement.    Except for the applicable provisions of the Management Agreement, this Agreement shall constitute the
entire agreement among the parties relating to the subject matter 

2

 

hereof
and shall supersede all other prior or contemporary agreements, understandings, negotiations and discussions whether oral or written. 

	8.
	Amendment and Modification; Assignment.    Neither this Agreement nor any of the terms or provisions hereof may be changed,
supplemented, waived, modified or assigned except by a written instrument executed by the parties hereto (or in the case of a waiver, by the party granting such waiver);  provided, however, Manager may assign this Agreement to any affiliate to whom Manager assigns the
Management Agreement (pursuant to the terms thereof).

	9.
	Counterparts.    This Agreement may be executed in two or more counterparts, each of which may be signed by any of the parties
hereto, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

	10.
	Governing Law.    This Agreement and all questions relating to its validity, interpretation, performance and enforcement
shall be governed by, construed, interpreted and enforced in accordance with the laws of the State of New York.

	11.
	Invalid Provisions.    If any provision of this Agreement is held to be illegal, invalid or unenforceable under present or
future laws, such provision shall be fully severable, this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a part of hereof and the
remaining provisions of this Agreement shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance herefrom.

	12.
	Definitions and Interpretation. 
	(a)
	Defined Terms.    Capitalized terms used but not defined herein shall have the meanings ascribed thereto in the Management
Agreement.

	(b)
	Singular and Plural Forms.    The use herein of the singular form shall also denote the plural form, and the use herein of
the plural form shall denote the singular form, as in each case the context may require. 

3

 

IN
WITNESS WHEREOF, the parties to hereto have duly executed this Agreement as of the day and year first written above. 

	 	 	GKK MANAGER LLC	 	 
	

 	
 	

By:	

    
 Name:

Title:	
 	

 
	

 	
 	

 	

 	
 	

 
	 	 	SL GREEN OPERATING PARTNERSHIP, L.P.	 	 
	 	 	By:	    
 Name:

Title:	 	 
	 	 	 	 	 	 

4

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Exhibit 10.2  

 
 

DISPLAYTECH, INC.    
    
    NOTE PURCHASE AGREEMENT    
    

        This Note Purchase Agreement (the "Agreement") is made as of December 10, 2002 between Displaytech, Inc., a Colorado corporation (the "Company"),
and the purchasers set forth on Exhibit A hereto (the "Purchasers"). 

Section 1  

Authorization and Sale of the Notes  

        1.1    Authorization of the Note.    The Company represents and warrants to the Purchasers that it has authorized the
sale and issuance of convertible promissory notes in substantially the form attached hereto as Exhibit B (each a "Note"). 

        1.2    Sale of the Notes.    Subject to the terms and conditions hereof and in reliance upon the representations,
warranties and agreements included and incorporated by reference herein, each of the Purchasers, severally and not jointly, agrees to purchase Notes from the Company in an initial aggregate principal
amount as set forth opposite such Purchaser's name on Exhibit A (each an "Individual Purchase Commitment"). The total initial aggregate principal
amount of all Notes sold by the Company to the Purchasers shall not exceed $600,000.00 (the "Aggregate Purchase Commitment"). Each sale (a "Sale") of Notes by the Company to the Purchasers from time
to time shall be in an aggregate amount (the "Sale Amount") specified by the Company in a written request to the Purchasers (each a "Purchase Request"). In the event of a Sale, each Purchaser shall
purchase a Note in the amount of its pro rata share, determined by multiplying the Sale Amount by a fraction, the
numerator of which is such Purchaser's Individual Purchase Commitment and the denominator of which is the Aggregate Purchase Commitment (each a "Pro Rata Share"). Each sale of the Notes to each of the
Purchasers will constitute a separate sale hereunder. 

        1.3    Increased Commitment.    Notwithstanding anything herein to the contrary, (a) the Aggregate Purchase
Commitment may be increased from time to time upon the written consent of the Company and Purchasers holding at least 80% of the aggregate principal amount of the Notes then outstanding, and
(b) subject to clause (a), an Individual Purchase Commitment may be increased from time to time upon the written consent of the Company and the Purchaser whose Individual Purchase
Commitment is to be so increased. 

Section 2  

Closings; Delivery; Conditions  

        2.1.    Closings.    The purchase and sale of the Notes under this Agreement shall take place in multiple closings,
each such closing (a "Closing") to take place at the offices of Gibson, Dunn & Crutcher LLP, 200 Park Avenue, New York, New York 10166. The initial Closing shall take place on
December 10, 2002, or at such other time and date as the parties may agree. Each subsequent Closing, if any, shall occur on the dates as determined by the Company and the Purchasers. 

        2.2    Delivery.    At the initial Closing, subject to the terms and conditions hereof, the Company will deliver to
each Purchaser the initial Notes to be purchased by such Purchaser from the Company, dated the date of the Closing, and such other certificates, consents, waivers and agreements as are reasonably
requested by the Purchasers (together with this Agreement, collectively the "Transaction Documents"), against payment of the purchase price therefor payable as of the date of such Closing by wire
transfer. On any subsequent Closing, the Company will deliver to each Purchaser additional Notes subject to the terms and conditions hereof (including without limitation payment by the Purchasers of
the purchase price therefor). 

 

        2.3    Conditions to Obligations of the Purchasers to Purchase the Initial Notes.    The Purchasers' obligations to
purchase the Notes at the initial Closing are subject to the following conditions: 

        2.3.1    Certified Board Resolutions.    The Purchasers shall have received a copy of the resolutions of the directors
of the Company authorizing the transactions contemplated by each of the Transaction Documents, and the Company shall have acknowledged that such resolutions are true, complete and correct. 

        2.3.2    Waivers; Consents.    All proceedings to have been taken and all waivers, consents and approvals to be
obtained in connection with the transactions contemplated by this Agreement shall have been taken or obtained, and all Transaction Documents shall be reasonably satisfactory to the Purchasers, and the
Purchasers shall have received copies (executed or certified, as may be appropriate) of the documents which the Purchasers may reasonably have requested in connection with such transactions. 

        2.3.3    Governmental Authorizations.    All consents, permits, approvals, qualifications and/or registrations
required to be obtained or effected prior to the initial Closing under any applicable state securities or "Blue Sky" laws of any jurisdiction shall have been obtained or effected. 

        2.3.4    Opinion of Counsel.    The Purchasers shall have received from George E. Clough, General Counsel to the
Company, an opinion dated as of the initial Closing date, in the form set forth on Exhibit C hereto. 

        2.4    Conditions to Obligations of the Purchasers to Purchase Notes on any Closing.    

        2.4.1    Note.    Each Purchaser shall have received its respective duly executed initial Note. 

        2.4.2    Representations and Warranties.    The Purchasers shall have received a certificate of an officer of the
Company certifying that all representations and warranties of the Company are accurate, correct and complete in all material respects at and as of such Closing date as if made at and as of such date,
except for those representations and warranties made as of a specific date other than the date of this Agreement, which shall be true and correct as of such other date. 

        2.4.3    Opinion of Counsel.    The Purchasers shall have received from George E. Clough, General Counsel to the
Company, an opinion dated as of such Closing date with respect to such matters as the Purchasers reasonably request. 

        2.5    Conditions to Obligations of the Company.    The Company's obligations to sell the Notes on any Closing are
subject to the following conditions: 

        2.5.1    Payment.    The Company shall have received full payment referenced in Section 2.2 hereof to be
delivered to the Company in consideration of the issuance of such Notes. 

        2.5.2    Representations and Warranties.    All representations and warranties of the Purchasers shall be accurate,
correct and complete in all material respects at and as of such Closing date as if made at and as of such date, except for those representations and warranties made as of a specific date other than
the date of this Agreement, which shall be true and correct as of such other date. 

        2.5.3    Blue Sky.    The Company shall have obtained all necessary Blue Sky law permits and qualifications, or
secured an exemption therefrom, required by any State for the offer and sale of such Notes. 

2

 

Section 3  

Representations and Warranties  

        The Company and the Purchasers, severally and not jointly, represent and warrant as follows as of the date hereof, except as set forth in the schedules attached
hereto: 

        (a)   The
Company and the Purchasers agree that their respective representations and warranties set forth in Sections 4 and 5 of that certain Stock Purchase Agreement, dated
as of July 30, 2001, among the Company, the Purchasers and the other parties set forth on the signature pages thereto (the "Series D Agreement"), including the exceptions thereto set
forth in the Schedule of Exceptions, are incorporated by reference herein and applicable as of the date hereof; provided, that all references in such
sections to "Agreement," "Shares," "Conversion Shares" and "Closing Date" shall be deemed references to "this Agreement," "the Notes," "the shares issuable upon conversion of the Notes" and "the
initial Closing hereunder," respectively, for purposes hereof; provided, further, that the Schedule of
Exceptions attached to the Series D Agreement shall be deemed amended for purposes of this Agreement in the manner set forth on Exhibit D
hereto. 

        (b)   Notwithstanding
the foregoing, for purposes of this Agreement only, the parties agree that (i) the reference to "July 27, 2001" set forth in
Section 4.2(a) of the Series D Agreement shall be replaced with "August 1, 2001" and (ii) the reference to "July 27, 2001" set forth in
Section 4.19(i) of the Series D Agreement shall be replaced with "November 30, 2002". 

Section 4  

Covenants  

        4.1    Future Bridge Financings.    If the Company enters into another debt financing (including rights and agreements
ancillary thereto, but excluding any renewal, extension or modification of the Company's existing indebtedness to Hewlett-Packard Company in the principal amount of $10,000,000.00 plus accrued
interest thereon (the "HP Debt")) during the term of the Notes in which any of the terms provided to the lender(s) therein are more favorable than those provided to the Purchasers, then the Notes
automatically shall be and hereby are amended to include such more favorable terms, and the Company promptly shall execute and deliver documents reflecting such amended terms; provided that the Notes
as so amended shall in all events be subordinate to the HP Debt as set forth in Section 3 of the form of Note attached hereto as Exhibit B. 

Section 5  

Miscellaneous  

        5.1    Expenses.    The Company shall be responsible for its attorneys' fees incurred in the preparation, execution
and delivery of this Agreement, the Notes, any other Transaction Documents and other related documentation, and shall pay, simultaneously with the initial Closing, $50,000 of such fees and other costs
and expenses of the Purchasers as a group in connection with the closing of the sale of the Notes and the negotiation and closing of the proposed Series E preferred stock financing (including,
without limitation, the fees and expenses of Gibson, Dunn & Crutcher LLP). Should any legal action, arbitration or other proceeding be commenced between the parties hereto concerning this
Agreement, the Notes or any matters relating thereto, the party prevailing in such legal action, arbitration or other proceeding shall be entitled, in addition to such other relief as may be granted,
to recover attorneys' fees and costs in such legal action, arbitration or other proceeding, which fees and costs shall be determined by the court or arbitrator, as the case may be. 

3

 

        5.2    Incorporation by Reference.    

        (a)   The
provisions of Sections 6, 12, 13, 16 and 19 of the Series D Agreement are incorporated by reference herein and applicable as of the date hereof;  provided, that all references in such sections to
"Agreement," "Shares," "Conversion Shares" and "Closing Date" shall be deemed references to "this
Agreement," "the Notes," "the shares issuable upon conversion of the Notes" and "the initial Closing hereunder," respectively, for purposes hereof. 

        (b)   The
parties acknowledge and agree that (i) the incorporation by reference made in Section 3 and Section 5.2(a) hereof is intended to apply the
substantive meaning of certain sections of the Series D Agreement to the sale and issuance of the Notes as contemplated herein and (ii) to the extent any additional amendments to the
sections of the Series D Agreement that are incorporated by reference herein are required to accomplish such intention, such additional amendments shall be and hereby are made. 

        (c)   In
the event that any provision of the Series D Agreement incorporated by reference herein may be held to conflict with provisions of this Agreement and/or the
Notes, the provisions of this Agreement and/or the Notes, as the case may be, shall control. 

Section 6  

Notice  

        All notices, requests, demands, consents and other communications hereunder shall be in writing and shall be delivered by hand or shall be sent by telex or
telecopy (confirmed by registered, certified or overnight mail or courier, postage and delivery charges prepaid), (i) if to the Company, to Displaytech, Inc., 2602 Clover Basin Drive,
Longmont, CO 80503-7603, Attention: Chief Executive Officer, with a copy to George E. Clough, Esq. or (ii) if to the Purchasers, at the address indicated on Exhibit A hereto,
with a copy to Gibson, Dunn & Crutcher LLP, 200 Park Avenue, 48th floor, New York, NY 10166, Attention: Steven R. Shoemate, Esq., or at such other address as a party may from time
to time designate as its address in writing to the other party to this Agreement. Whenever any notice is required to be given hereunder, such notice shall be deemed given and such requirement
satisfied only when such notice is delivered or, if sent by telex or telecopier, when received. 

[Remainder
of page intentionally blank; signature page follows immediately] 

4

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

	 	 	DISPLAYTECH, INC.
	

 	
 	

By:	

/s/  RICHARD BARTON      

	 	 	 	Name: Richard Barton
	 	 	 	Title: CEO
	

 	
 	

By:	

/s/  GEORGE E. CLOUGH      

	 	 	 	Name: George E. Clough
	 	 	 	Title: Secretary
	

Accepted and Agreed to as of the

date first above written by the

undersigned Purchasers:	
 	

 	

 

	

FLEMING US DISCOVERY FUND III, L.P.
	

By:	

FLEMING US DISCOVERY PARTNERS, L.P., its general partner	

 
	

By:	

FLEMING US DISCOVERY, LLC, its general partner	

 
	

By:	

/s/  ROBERT L. BURR      
	

 
	 	Name: Robert L. Burr	 
	 	Title: Member	 
	

FLEMING US DISCOVERY OFFSHORE FUND III, L.P.
	

By:	

FLEMING US DISCOVERY PARTNERS, L.P., its general partner	

 
	

By:	

FLEMING US DISCOVERY, LLC, its general partner	

 
	

By:	

/s/  ROBERT L. BURR      
	

 
	 	Name: Robert L. Burr	 
	 	Title: Member	 
	

INTERWEST CAPITAL, INC.
	

By:	

/s/  WILLIAM C. GLYNN      
	

 
	 	Name: William C. Glynn	 
	 	Title: President	 

EXHIBIT A  

	Purchaser
 
	 	Individual Purchase Commitment

	Fleming US Discovery Fund III, L.P.

1221 Avenue of the Americas, 40th Floor

New York, New York 10020

Attn: Robert L. Burr	 	$	258,500.00
	

Fleming US Discovery Offshore Fund III, L.P.

1221 Avenue of the Americas, 40th Floor

New York, New York 10010020

Attn: Robert L. Burr	
 	
$	

41,500.00
	

InterWest Capital, Inc.

P.O. Box 7608

555 S. Cole Rd.

Boise, Idaho 83707

Attn: William C. Glynn	
 	
$	

300,000.00

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DISPLAYTECH, INC. NOTE PURCHASE AGREEMENT

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