Document:

EXECUTION VERSION

 

 

EMPLOYMENT AND NONCOMPETITION AGREEMENT

 

This EMPLOYMENT AND NONCOMPETITION AGREEMENT
(“Agreement”) is made as of the 12th day of June, 2012, between Benjamin Harris (“Executive”) and Gramercy
Capital Corp., a Maryland corporation (the “Employer”), to be effective as of July 1, 2012 (the “Effective Date”).

 

1.          Term.
The term of this Agreement shall commence on the Effective Date and shall continue through, and terminate on, June 30, 2017 (the
“Original Term”) unless earlier terminated as provided in Section 6 below. The Original Term shall automatically be
extended for a single one (1) year period on the same terms as are set forth herein for the Original Term (the “Renewal Term”),
unless either party gives the other party at least three (3) months written notice of non-renewal prior to the expiration of the
Original Term, which notice shall constitute a Notice of Termination pursuant to Section 6(d) terminating Executive’s employment
without Cause (if given by the Employer) or without Good Reason (if given by Executive) as of the end of the Original Term. The
period of Executive’s employment hereunder consisting of the Original Term and the Renewal Term, if applicable, is herein
referred to as the “Employment Period.”

 

2.          Employment
and Duties.

 

(a)          Duties.
During the Employment Period, Executive shall be employed in the business of the Employer and its affiliates. Executive shall serve
as Chief Investment Officer of the Employer from the Effective Date through July 31, 2012, and as President of the Employer thereafter.
In his capacity as President and Chief Investment Officer, Executive’s duties and authority shall be those as would normally
attach to Executive’s position as President or Chief Investment Officer, as applicable, including such duties and responsibilities
as are customary among persons employed in similar capacities for similar companies, but in all events such duties shall be commensurate
with his position as President or Chief Investment Officer of the Employer, as applicable. Executive’s duties and authority
shall be as further set forth by the Employer.

 

(b)          Best
Efforts. Executive agrees to his employment as described in this Section 2 and agrees to devote substantially all of his business
time and efforts to the performance of his duties under this Agreement, except as otherwise approved by the Employer; provided,
however, that nothing herein shall be interpreted to preclude Executive, so long as there is no material interference with his
duties hereunder, from (i) participating as an officer or director of, or advisor to, any charitable or other tax exempt organization
or otherwise engaging in charitable, fraternal or trade group activities; (ii) investing and managing his assets as an investor
in other entities or business ventures; provided that he performs no management or similar role (or, in the case of investments
other than those in entities or business ventures engaged in the Business (as defined
in Section 8), he performs a management role comparable to the role that a significant limited partner would have,
but performs no day-to-day management or similar role) with respect to such entities or ventures and such investment does not violate
Section 8 hereof; and provided, further, that, in any case in which Executive knows that another party involved in the investment
has a business relationship with the Employer, Executive shall give prior written notice thereof to the Employer; (iii) serving
as a member of the Board of Directors of a for-profit corporation with the approval of the Employer; or (iv) participating in the
management or operation of Executive’s family business holdings in Canada.

 

    	 

    	 

    
 

(c)          Travel.
In performing his duties hereunder, Executive shall be available for all reasonable travel as the needs of the Employer’s
business may require. Executive shall be based in, or within 50 miles of, Manhattan.

 

3.          Compensation
and Benefits. In consideration of Executive’s services hereunder, the Employer shall compensate Executive as provided
in this Agreement, and the Employer shall have the obligations as set forth herein.

 

(a)          Base
Salary. The Employer shall pay Executive a minimum annual salary at the rate of $600,000 per annum during the Employment Period
(“Base Salary”). Base Salary shall be payable in periodic installments in accordance with the regular payroll practices
of the Employer and shall be reviewed by the Employer at least annually.

 

(b)          Signing
Bonus; Incentive Compensation Bonuses. In addition to Base Salary, during the Employment Period, Executive shall be eligible
for and shall receive such discretionary annual bonuses as the Employer, in its sole discretion, may deem appropriate to reward
Executive for job performance. Any bonuses awarded for a fiscal year shall be paid after the end of such fiscal year and on or
before the 15th day of the third month of the following fiscal year (e.g., a bonus for 2013 will be paid sometime between
January 1, 2014 and March 15, 2014). In lieu of a bonus for 2012, the Employer shall pay Executive a signing bonus of $150,000
(the “Signing Bonus”), of which $75,000 shall be payable as of the Effective Date and the remainder shall be payable
in three equal installments on June 30, 2013, June 13, 2014 and June 13, 2015; provided that Executive remains employed by the
Employer on each such date.

 

(c)          Initial
Equity Awards. On the Effective Date, the Employer shall grant 150,000 shares of restricted stock (the “Restricted Stock
Award”) and 450,000 restricted stock units (the “Restricted Stock Unit Award”) to Executive under the Gramercy
Capital Corp. 2012 Inducement Equity Incentive Plan upon the terms summarized on Exhibit A hereto and pursuant to definitive
documentation consistent with the Employer’s general practices for documenting such equity awards. In addition, on the Effective
Date, Executive shall also be entitled to receive an award pursuant to an outperformance plan (the “Outperformance Plan”)
in accordance with definitive documentation which is consistent with the terms summarized on Exhibit B hereto. Each of the
Restricted Stock Award, the Restricted Stock Unit Award and the Outperformance Plan award is intended to constitute an employment
inducement award pursuant to Section 303A.08 of the New York Stock Exchange Listed Company Manual, and Executive acknowledges that
the granting of each of these awards is a material inducement to Executive agreeing to accept employment by the Employer.

 

(d)          Other
Equity Awards. Executive shall be eligible to receive equity awards from the Employer to the extent the Employer maintains
an equity award plan or similar program in which senior officers may participate; provided that the actual amount and terms of
any such equity awards shall be determined by the Employer in its sole discretion.

 

(e)          Expenses.
Executive shall be reimbursed for all reasonable business related expenses incurred by Executive at the request of or on behalf
of the Employer, provided that such expenses are incurred and accounted for in accordance with the policies and procedures established
by the Employer. Any expenses incurred during the Employment Period but not reimbursed by the Employer by the end of the Employment
Period, shall remain the obligation of the Employer to so reimburse Executive.

 

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(f)          Health
and Welfare Benefit Plans. During the Employment Period, Executive and Executive’s immediate family shall be entitled
to participate in such health and welfare benefit plans as the Employer shall maintain from time to time for the benefit of senior
executive officers of the Employer and their families, on the terms and subject to the conditions set forth in such plan. Nothing
in this Section shall limit the Employer’s right to change or modify or terminate any benefit plan or program as it sees
fit from time to time in the normal course of business so long as it does so for all senior executives of the Employer.

 

(g)          Vacations.
Executive shall be entitled to paid vacations in accordance with the then regular procedures of the Employer governing senior executive
officers, except that Executive shall be credited with a minimum of 20 vacation days per calendar year, pro-rated for any partial
year. The Employer will pay Executive for unused accrued vacation upon termination of his employment.

 

(h)          Other
Benefits. During the Employment Period, the Employer shall provide to Executive such other benefits, as generally made available
to other senior executives of the Employer; provided that it is acknowledged that the Employer’s
Chief Executive Officer may be provided with additional benefits not made available to Executive.

 

(i)          Timing
of Expense Reimbursement. All in-kind benefits provided and expenses eligible for reimbursement under this Agreement, if any,
must be provided by the Employer or incurred by Executive during the time periods set forth in this Agreement. All reimbursements
shall be paid as soon as administratively practicable, but in no event shall any reimbursement be paid after the last day of the
taxable year following the taxable year in which the expense was incurred. The amount of in-kind benefits provided or reimbursable
expenses incurred in one taxable year shall not affect the in-kind benefits to be provided or the expenses eligible for reimbursement
in any other taxable year. Such right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another
benefit.

 

4.          Indemnification
and Liability Insurance. The Employer agrees to indemnify Executive to the full extent permitted by applicable law, as the
same exists and may hereafter be amended, from and against any and all losses, damages, claims, liabilities and expenses asserted
against, or incurred or suffered by, Executive (including the costs and expenses of legal counsel retained by the Employer to defend
Executive and judgments, fines and amounts paid in settlement actually and reasonably incurred by or imposed on such indemnified
party) with respect to any action, suit or proceeding, whether civil, criminal, administrative or investigative (a “Proceeding”)
in which Executive is made a party or threatened to be made a party or is otherwise involved, either with regard to his entering
into this Agreement with the Employer or in his capacity as an officer or former officer of the Employer or any affiliate thereof
for which he may serve in such capacity. The Employer also agrees to secure promptly and maintain officers and directors liability
insurance providing coverage for Executive. The provisions of this Section 4 shall remain in effect after this Agreement is terminated
irrespective of the reasons for termination.

 

5.          Employer’s
Policies. Executive agrees to observe and comply with the reasonable written rules and regulations of the Employer regarding
the performance of his duties and to carry out and perform orders, directions and policies communicated to him from time to time
by the Employer, so long as same are otherwise consistent with this Agreement.

 

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6.          Termination.
Executive’s employment hereunder may be terminated under the following circumstances:

 

(a)          Termination
by the Employer.

 

(i)          Death.
Executive’s employment hereunder shall terminate upon his death.

 

(ii)         Disability.
If, as a result of Executive’s incapacity due to physical or mental illness or disability, Executive shall have been incapable
of performing his duties hereunder even with a reasonable accommodation on a full-time basis for the entire period of four consecutive
months or any 120 days in a 180-day period, and within 30 days after written Notice of Termination (as defined in Section 6(d))
is given he shall not have returned to the performance of Executive’s duties hereunder on a full-time basis, the Employer
may terminate Executive’s employment hereunder.

 

(iii)        Cause.
The Employer may terminate Executive’s employment hereunder for Cause. For purposes of this Agreement, “Cause”
shall mean Executive’s: (A) engaging in conduct which is a felony; (B) material breach of any of his obligations under Sections
8(a) through 8(e) of this Agreement; (C) willful misconduct of a material nature or gross negligence with regard to the Employer
or any of its affiliates; (D) material fraud with regard to the Employer or any of its affiliates; (E) willful or material violation
of any reasonable written rule, regulation or policy of the Employer applicable to senior executives unless such a violation is
cured within 30 days after written notice of such violation by the Employer; or (F) failure to competently perform his duties which
failure is not cured within 30 days after receiving notice from the Employer specifically identifying the manner in which Executive
has failed to perform (it being understood that, for this purpose, the manner and level of Executive’s performance shall
not be determined based on the financial performance of the Employer (including without limitation the performance of the stock
of the Employer)).

 

(iv)        Without
Cause. Executive’s employment hereunder may be terminated by the Employer at any time without Cause (as defined in Section
6(a)(iii) above), subject only to the severance provisions specifically set forth in Section 7. If the Employer terminates Executive’s
employment hereunder as of the end of the Original Term by giving a notice of non-renewal to Executive pursuant to Section 1,
such termination shall be deemed to be termination without Cause.

 

(b)          Termination
by Executive.

 

(i)          Disability.
Executive may terminate his employment hereunder for Disability within the meaning of Section 6(a)(ii) above.

 

(ii)         With
Good Reason. Executive’s employment hereunder may be terminated by Executive with Good Reason by written notice to the
Employer providing at least ten (10) days notice prior to such termination. For purposes of this Agreement, termination with “Good
Reason” shall mean the occurrence of one of the following events within sixty (60) days prior to such termination:

 

(A)         a
material change or, if a Change-in-Control has occurred, any change in Executive’s duties, responsibilities, status or positions
with the Employer caused by the Employer that does not represent a promotion from or maintaining of Executive’s duties, responsibilities,
status or positions (which, so long as Executive is the President of the Employer, shall include the appointment of another person
as co-President of the Employer), except in connection with the termination of Executive’s employment for Cause, disability,
retirement or death;

 

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(B)         a
failure by the Employer to pay compensation when due in accordance with the provisions of Section 3, which failure has not been
cured within 10 business days after the notice of the failure (specifying the same) has been given by Executive to the Employer;

 

(C)         a
material breach or, if a Change-in-Control has occurred, any breach by the Employer of any provision of this Agreement, which breach
has not been cured within 30 days after notice of noncompliance (specifying the nature of the noncompliance) has been given by
Executive to the Employer;

 

(D)         the
Employer requiring Executive to be based in an office more than 50 miles outside of Manhattan;

 

(E)         a
reduction by the Employer in Executive’s Base Salary to less than the minimum Base Salary set forth in Section 3(a);

 

(F)         a
material reduction in Executive’s benefits under any benefit plan (other than an equity award program) compared to those
currently received (other than in connection with and proportionate to the reduction of the benefits received by all or most senior
executives or undertaken in order to maintain such plan in compliance with any federal, state or local law or regulation governing
benefits plans, including, but not limited to, the Employee Retirement Income Security Act of 1974); or

 

(G)         the
failure by the Employer to obtain from any successor to the Employer an agreement to be bound by this Agreement pursuant to Section
15 hereof, which has not been cured within 30 days after the notice of the failure (specifying the same) has been given by Executive
to the Employer.

 

(iii)        Without
Good Reason. Executive shall have the right to terminate his employment hereunder without Good Reason, subject to the terms
and conditions of this Agreement. If Executive terminates his employment hereunder as of the end of the Original Term by giving
a notice of non-renewal to the Employer pursuant to Section 1, such termination shall be deemed to be termination without Good
Reason.

 

(c)          Definitions.
The following terms shall be defined as set forth below.

 

(i)          A
“Change-in-Control” shall be deemed to have occurred if:

 

(A)         any
“person,” including a “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”), but excluding the Employer, any entity controlling, controlled by or
under common control with the Employer, any trustee, fiduciary or other person or entity holding securities under any employee
benefit plan or trust of the Employer or any such entity, and Executive and any “group” (as such term is used in Section
13(d)(3) of the Exchange Act) of which Executive is a member), is or becomes the “beneficial owner” (as defined in
Rule 13(d)(3) under the Exchange Act), directly or indirectly, of securities of the Employer representing 25% or more of either
(1) the combined voting power of the Employer’s then outstanding securities or (2) the then outstanding common stock (or
other similar equity interest, in the case of a company other than a corporation) of the Employer (in either such case other than
as a result of an acquisition of securities directly from the Employer); or

 

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(B)         there
shall occur any consolidation or merger of the Employer that would result in the voting securities of the Employer outstanding
immediately prior to such merger or consolidation representing (either by remaining outstanding or by being converted into voting
securities of the surviving entity) less than 50% of the total voting power of the voting securities of the surviving entity outstanding
immediately after such merger or consolidation or ceasing to have the power to elect at least a majority of the board of directors
or other governing body of such surviving entity; or

 

(C)         there
shall occur (1) any sale, lease, exchange or other transfer (in one transaction or a series of transactions contemplated or arranged
by any party as a single plan) of all or substantially all of the assets of the Employer, other than a sale or disposition by the
Employer of all or substantially all of the Employer’s assets to an entity at least 50% of the combined voting power of the
voting securities of which are owned by “persons” (as defined above) in substantially the same proportion as their
ownership of the Employer, as applicable, immediately prior to such sale, or (2) the approval by shareholders of the Employer of
any plan or proposal for the liquidation or dissolution of the Employer; or

 

(D)         the
members of the Board (the “Directors”) at the beginning of any consecutive 24-calendar-month period (the “Incumbent
Directors”) cease for any reason other than due to death to constitute at least a majority of the members of the Board; provided
that any Director whose election, or nomination for election by the Employer’s shareholders was approved or ratified by a
vote of at least a majority of the Incumbent Directors shall be deemed to be an Incumbent Director.

 

Notwithstanding the foregoing,
a Change-in-Control shall not be deemed to have occurred upon the sale, lease, exchange or other transfer by the Employer or its
direct and indirect subsidiaries of (1) all of their collateral management agreements (or their rights thereunder) with respect
to the assets owned by the indirect subsidiaries of the Employer that have issued CDO bonds that are outstanding as of the date
hereof (the “CDO Entities”), (2) all or substantially all of their interests in (or the underlying assets of) the CDO
Entities, and/or (3) all or substantially all of the assets of the Employer and its direct and indirect subsidiaries relating to
the CDO Entities or the Employer’s mortgage business generally.

 

(d)          Notice
of Termination; Termination Date. Any termination of Executive’s employment by the Employer or by Executive (other than
on account of death) shall be communicated by written Notice of Termination to the other party hereto in accordance with Section 11
of this Agreement. For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate
the specific termination provision in this Agreement relied upon and, as applicable, shall set forth in reasonable detail the facts
and circumstances claimed to provide a basis for termination of Executive’s employment under the provision so indicated.
Except in the case of a written notice of non-renewal pursuant to Section 1, Executive’s employment shall terminate as of
the effective date set forth in the Notice of Termination, which date shall not be more than thirty (30) days after the date of
the Notice of Termination. The date on which Executive’s employment terminates is referred to herein as the “Termination
Date.”

 

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(e)          Resignation
Upon Termination. In the event that Executive’s employment with the Employer is terminated, Executive (i) shall, within
five business days of receipt of a written request for resignation, resign as a director of the Employer, and shall resign all
other positions (including, without limitation, as officer, employee, director and member of any committee) with the Employer and
its subsidiaries, and (ii) shall provide such written confirmation thereof as may be reasonably required by the Employer.

 

7.          Compensation
Upon Termination; Change-in-Control.

 

(a)          Termination
By the Employer Without Cause or By Executive With Good Reason. If, during the Employment Period, (i) Executive is terminated
by the Employer without Cause pursuant to Section 6(a)(iv) above, or (ii) Executive shall terminate his employment hereunder with
Good Reason pursuant to Section (6)(b)(ii) above, then the Employment Period shall terminate as of the Termination Date, Executive
shall be entitled to receive his earned and accrued but unpaid Base Salary on or before the time required by law (but in no event
more than 30 days after the Termination Date), and Executive shall also be entitled to the following payments and benefits, subject
to Executive’s execution of a mutual release agreement in form and substance satisfactory to the Employer, whereby, in general,
each party releases the other from all claims such party may have against the other (other than (A) claims against the Employer
relating to the Employer’s obligations under this Agreement, the Outperformance Plan award agreement, and certain other specified
agreements arising in connection with or after Executive’s termination, including, without limitation, the Employer’s
obligations hereunder to provide severance payments and benefits and accelerated vesting of equity awards and (B) claims against
Executive relating to or arising out of any act of fraud, intentional misappropriation of funds, embezzlement or any other action
with regard to the Employer or any of its affiliated companies that constitutes a felony under any federal or state statute committed
or perpetrated by Executive during the course of Executive’s employment with the Employer or its affiliates, or any other
claims that may not be released by the Employer under applicable law) (the “Release”), and the effectiveness and irrevocability
thereof on or within 30 days after the Termination Date:

 

(i)          Executive
shall receive any unpaid installments of the Signing Bonus on the first regular payroll payment date occurring more than 30 days
after the Termination Date.

 

(ii)         Executive
shall receive an aggregate amount equal to the sum of (A) Executive’s average annual Base Salary in effect during the twenty-four
(24) months immediately prior to the Termination Date (the “Prior Salary”), and (B) the highest annual cash bonus paid
to Executive during the three fiscal years prior to the Termination Date (including any portion of the annual cash bonus paid in
the form of equity awards, as determined at the time of grant by the Compensation Committee of the Board, in its sole discretion,
and reflected in the minutes or consents of the Compensation Committee of the Board relating to the approval of such equity awards,
but excluding any annual or other equity awards made other than as payment of a cash bonus) or, if the Termination Date occurs
prior to the date Executive’s annual performance bonus for 2013 has been determined, the amount of $75,000 (with the applicable
amount being referred to herein as the “Prior Bonus”), which amount shall be payable in twelve (12) equal monthly installments
beginning on the first regular payroll payment date occurring more than 30 days after the Termination Date.

 

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(iii)        If
the Termination Date is during 2013 or any later year, the Employer shall pay Executive a prorated annual performance bonus (the
“Prorated Annual Bonus”) equal to (x) the Prior Bonus multiplied by (y) a fraction, the numerator of which is
the number of days in the fiscal year in which Executive’s employment terminates through the Termination Date (and the number
of days in the prior fiscal year (other than 2012), in the event that Executive’s annual cash bonus for such year had not
been determined as of the Termination Date) and the denominator of which is 365, provided that the Prorated Annual Bonus shall
be less the amount of any annual performance bonus, or advance thereof, previously paid for the period associated with the Prorated
Annual Bonus. Such payment shall be made on the first regular payroll payment date occurring more than 30 days after the Termination
Date.

 

(iv)        If
Executive was participating in the Employer's group health plan immediately prior to the Termination Date, then the Employer shall
pay to Executive a monthly cash payment for a period of twelve (12) months after the Termination Date equal to the amount of monthly
employer contribution that the Employer would have made to provide health insurance to Executive if Executive had remained employed
by the Employer. Notwithstanding the foregoing, the Employer shall in no event be required to make the payments otherwise required
by this Section 7(a)(iv) after such time as Executive becomes entitled to receive health insurance benefits from another employer
or recipient of Executive’s services (such entitlement being determined without regard to any individual waivers or other
similar arrangements).

 

(v)         On
the date that is 30 days after the Termination Date, (A) all unvested equity awards granted by the Employer (other than the Outperformance
Plan award, the Restricted Stock Unit Award and any future equity award that is subject to performance-based vesting requirements
other than continued employment) that would have vested had Executive remained as an employee of the Employer through the date
that is twelve (12) months after the Termination Date will vest; provided that if the Termination Date occurs in connection with
or within eighteen (18) months following a Change-in-Control, then all such equity awards shall fully vest, (B) in the event Executive
is terminated prior to any Change-in-Control and the Restricted Stock Unit Award has not yet fully vested, a number of unvested
restricted stock units subject to such award equal to one-fifth of the total number of restricted stock units initially subject
to such award will vest, and (C) in the event Executive is terminated on or after a Change-in-Control, the unvested equity awards
granted by the Employer pursuant to the Restricted Stock Unit Award will be treated in the same manner as other equity awards pursuant
to clause (A) above after giving effect to the measurement of the performance-based hurdles under the Restricted Stock Unit Award
as of the Change-in-Control. Additionally, in the event that any unvested equity awards (or portion thereof) made by the Employer
to Executive would, in the absence of this Agreement, terminate or be forfeited as a result of a termination of employment, then
such equity awards shall only terminate or be forfeited upon the later of (A) the date upon which it is determined that such equity
awards will not vest pursuant to this Section 7(a)(v) or (B) the date otherwise provided for in such equity awards; provided that
the period during which a stock option or similar equity award may be exercised shall not be extended beyond the maximum period
(assuming Executive continued as an employee of the Employer) provided for in such equity award and no additional vesting shall
occur solely as a result of the operation of this sentence. The Outperformance Plan award and any future equity award that is subject
to performance-based vesting requirements other than continued employment will be treated in accordance with their terms.

 

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(vi)        In
the event such termination occurs in connection with or within eighteen (18) months after a Change-in-Control, then Executive will
be entitled to the payments and benefits provided under the foregoing Section 7(a)(i)-(v), except that the aggregate amount payable
to Executive pursuant to Section 7(a)(ii) shall be multiplied by one and one-half (1.5).

 

Other than as may be provided under Section 4 or as
expressly provided in this Section 7(a), the Employer shall have no further obligations hereunder following such termination.

 

(b)          Termination
By the Employer For Cause or By Executive Without Good Reason. If, during the Employment Period, (i) Executive is terminated
by the Employer for Cause pursuant to Section 6(a)(iii) above, or (ii) Executive voluntarily terminates his employment hereunder
without Good Reason pursuant to Section 6(b)(iii) above, then the Employment Period shall terminate as of the Termination Date
and Executive shall be entitled to receive his earned and accrued but unpaid Base Salary on or before the time required by law
(but in no event more than 30 days after the Termination Date), but, for avoidance of doubt, shall not be entitled to any annual
cash bonus for the year in which the termination occurs, severance payment, continuation of benefits or acceleration of vesting
or extension of exercise period of any equity awards, except as otherwise provided in the documentation applicable to such equity
awards. Other than as may be provided under Section 4 or as expressly provided in this Section 7(b), the Employer shall have no
further obligations hereunder following such termination.

 

(c)          Termination
by Reason of Death. If, during the Employment Period, Executive’s employment terminates due to his death, Executive’s
estate (or a beneficiary designated by Executive in writing prior to his death) shall be entitled to the following payments and
benefits:

 

(i)          On
or before the time required by law (but in no event more than 30 days after the Termination Date), Executive’s estate (or
a beneficiary designated by Executive in writing prior to his death) shall receive from the Employer an amount equal to any earned
and accrued but unpaid Base Salary.

 

(ii)         On
the first regular payroll payment date after the Termination Date occurs, Executive’s estate (or a beneficiary designated
by Executive in writing prior to his death) shall receive from the Employer an amount equal to (A) any unpaid installments of the
Signing Bonus and (B) if the Termination Date is during 2013 or any later year, the Prorated Annual Bonus, less the amount of any
annual performance bonus, or advance thereof, previously paid for the period associated with the Prorated Annual Bonus.

 

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(iii)        On
the Termination Date, (A) all unvested equity awards granted by the Employer (other than the Outperformance Plan award, the Restricted
Stock Unit Award and any future equity award that is subject to performance-based vesting requirements other than continued employment)
that would have vested had Executive remained as an employee of the Employer through the date that is twelve (12) months after
the Termination Date will vest, (B) in the event the Termination Date occurs prior to any Change-in-Control and the Restricted
Stock Unit Award has not yet fully vested, a number of unvested restricted stock units subject to such award equal to one-fifth
of the total number of restricted stock units initially subject to such award will vest, and (C) in the event the Termination Date
occurs following a Change-in-Control, the unvested equity awards granted by the Employer pursuant to the Restricted Stock Unit
Award will be treated in the same manner as other equity awards pursuant to clause (A) above after giving effect to the measurement
of the performance-based hurdles under the Restricted Stock Unit Award as of the Change-in-Control. The Outperformance Plan award
and any future equity award that is subject to performance-based vesting requirements other than continued employment will be treated
in accordance with their terms.

 

Other than as may be provided under Section 4 or as
expressly provided in this Section 7(c), the Employer shall have no further obligations hereunder following such termination.

 

(d)          Termination
by Reason of Disability. In the event that, during the Employment Period, Executive’s employment terminates due to his
disability as defined in Section 6(a)(ii) above, Executive shall be entitled to receive his earned and accrued but unpaid Base
Salary on or before the time required by law (but in no event more than 30 days after the Termination Date) and Executive shall
be entitled to the following payments and benefits, subject to Executive’s execution of the Release and the effectiveness
and irrevocability thereof on or within 30 days after the Termination Date:

 

(i)          Executive
shall receive any unpaid installments of the Signing Bonus on the first regular payroll payment date occurring more than 30 days
after the Termination Date.

 

(ii)         Executive
shall receive an aggregate amount equal to one times the sum of the Prior Salary plus the Prior Bonus, which amount shall be payable
in twelve (12) equal monthly installments beginning on the first regular payroll payment date occurring more than 30 days after
the Termination Date.

 

(iii)        If
the Termination Date is during 2013 or any later year, the Employer shall pay Executive the Prorated Annual Bonus on the first
regular payroll payment date occurring more than 30 days after the Termination Date, provided that the Prorated Annual Bonus shall
be less the amount of any annual performance bonus, or advance thereof, previously paid for the period associated with the Prorated
Annual Bonus.

 

(iv)        On
the date that is 30 days after the Termination Date, (A) all unvested equity awards granted by the Employer (other than the Outperformance
Plan award, the Restricted Stock Unit Award and any future equity award that is subject to performance-based vesting requirements
other than continued employment) that would have vested had Executive remained as an employee of the Employer through the date
that is twelve (12) months after the Termination Date will vest, (B) in the event the Termination Date occurs prior to any Change-in-Control
and the Restricted Stock Unit Award has not yet fully vested, a number of unvested restricted stock units subject to such award
equal to one-fifth of the total number of restricted stock units initially subject to such award will vest, and (C) in the event
the Termination Date occurs following a Change-in-Control, the unvested equity awards granted by the Employer pursuant to the Restricted
Stock Unit Award will be treated in the same manner as other equity awards pursuant to clause (A) above after giving effect to
the measurement of the performance-based hurdles under the Restricted Stock Unit Award as of the Change-in-Control. Additionally,
in the event that any unvested equity awards (or portion thereof) made by the Employer to Executive would, in the absence of this
Agreement, terminate or be forfeited as a result of a termination of employment, then such equity awards shall only terminate or
be forfeited upon the later of (A) the date upon which it is determined that such equity awards will not vest pursuant to this
Section 7(d)(iv) or (B) the date otherwise provided for in such equity awards; provided that the period during which a stock option
or similar equity award may be exercised shall not be extended beyond the maximum period (assuming Executive continued as an employee
of the Employer) provided for in such equity award and no additional vesting shall occur solely as a result of the operation of
this sentence. The Outperformance Plan award and any future equity award that is subject to performance-based vesting requirements
other than continued employment will be treated in accordance with their terms.

 

    	10

    	 

    
 

(v)         If
Executive was participating in the Employer's group health plan immediately prior to the Termination Date, then the Employer shall
pay to Executive a monthly cash payment for a period of twelve (12) months after the Termination Date equal to the amount of monthly
employer contribution that the Employer would have made to provide health insurance to Executive if Executive had remained employed
by the Employer. Notwithstanding the foregoing, the Employer shall
in no event be required to make the payments otherwise required by this Section 7(d)(v) after such time as Executive becomes entitled
to receive health insurance benefits from another employer or recipient of Executive’s services (such entitlement being determined
without regard to any individual waivers or other similar arrangements).

 

Other than as may be provided under Section 4 or as
expressly provided in this Section 7(d), the Employer shall have no further obligations hereunder following such termination.

 

8.          Confidentiality;
Prohibited Activities. Executive and the Employer recognize that due to the nature of Executive’s employment and relationship
with the Employer, Executive has access to and develops confidential business information, proprietary information, and trade secrets
relating to the business and operations of the Employer. Executive acknowledges that (i) such information is valuable to the business
of the Employer, (ii) disclosure to, or use for the benefit of, any person or entity other than the Employer, would cause irreparable
damage to the Employer, (iii) the principal business of the Employer as of the date hereof is the acquisition, development, asset
management and servicing of net lease properties (the business of the Employer as of the date hereof
and from time to time hereafter, is referred to as the “Business”), (iv) the Employer is one of the limited
number of persons who have developed a business such as the Business, and (v) the Business is national in scope. Executive further
acknowledges that his duties for the Employer include the duty to develop and maintain client, customer, employee, and other business
relationships on behalf of the Employer; and that access to and development of those close business relationships for the Employer
render his services special, unique and extraordinary. In recognition that the goodwill and business relationships described herein
are valuable to the Employer, and that loss of or damage to those relationships would destroy or diminish the value of the Employer,
and in consideration of the compensation (including severance) arrangements hereunder, and other good and valuable consideration
the receipt and sufficiency of which are hereby acknowledged by Executive, Executive agrees as follows:

 

    	11

    	 

    
 

(a)          Confidentiality.
During the Employment Period and at all times thereafter, Executive shall maintain the confidentiality of all confidential or proprietary
information of the Employer (“Confidential Information”), and, except in furtherance of the business of the Employer
or as specifically required by law or by court order, he shall not directly or indirectly disclose any such information to any
person or entity; nor shall he use Confidential Information for any purpose except for the benefit of the Employer. For purposes
of this Agreement, “Confidential Information” includes, without limitation: client or customer lists, identities, contacts,
business and financial information (excluding those of Executive prior to employment with the Employer); investment strategies;
pricing information or policies, fees or commission arrangements of the Employer; marketing plans, projections, presentations or
strategies of the Employer; financial and budget information of the Employer; new personnel acquisition plans; and all other business
related information which has not been publicly disclosed by the Employer. This restriction shall apply regardless of whether such
Confidential Information is in written, graphic, recorded, photographic, data or any machine readable form or is orally conveyed
to, or memorized by, Executive.

 

(b)          Prohibited
Activities. Because Executive’s services to the Employer are essential and because Executive has access to the Employer’s
Confidential Information, Executive covenants and agrees that:

 

(i)          During
the period when Executive is employed by the Employer and for the twelve (12) month period thereafter (or, if Executive does not
commence employment pursuant to this Agreement, during the twelve (12) month period commencing on the Effective Date), Executive
will not, anywhere in the United States, without the prior written consent of the Employer, directly
or indirectly (individually, or through or on behalf of another entity as owner, partner, agent, employee, consultant, or in any
other capacity), engage, participate or assist, as an owner, partner, employee, consultant, director, officer, trustee or agent,
in any element of the Business, provided, however, that (A) such twelve (12) month period shall only be six (6) months if Executive’s
employment is terminated by the Employer or any successor thereto without Cause or by Executive for Good Reason, and (B) such twelve
(12) month period shall only be six (6) months if Executive’s employment is terminated upon or after the expiration of the
Renewal Term; with this subparagraph (i) being subject, however, to Section 8(c) below; and for the avoidance of doubt,
nothing in this Section 8(b)(i) shall restrict Executive from engaging, participating or assisting in the management or operation
of his family business holdings in Canada; and

 

(ii)         Executive
will not, without the prior written consent of the Employer, directly or indirectly (individually, or through or on behalf of another
entity as owner, partner, agent, employee, consultant, or in any other capacity), during the period when Executive is employed
by the Employer and (A) during the two (2) year period following the termination of Executive’s employment for any reason
(including upon or after the expiration of the term of the Agreement) solicit, encourage, or engage in any activity to induce any
employee of the Employer to terminate employment with the Employer, or to become employed by, or to enter into a business relationship
with, any other person or entity, or (B) during the one (1) year period following such termination, engage in any activity intentionally
to interfere with, disrupt or damage the relationship of the Employer with any existing borrower, tenant, client or, supplier,
or disrupt or damage any other existing business relationship of the Employer. For purposes of this subsection, the term “employee”
means any individual who is an employee of or consultant to the Employer (or any affiliate of either) during the six (6) month
period prior to Executive’s last day of employment.

 

    	12

    	 

    
 

(c)          Other
Investments/Activities. Notwithstanding anything contained herein to the contrary, Executive is not prohibited by this Section
8 from making investments (i) solely for investment purposes and without participating in the business in which the investments
are made, in any entity, if (x) Executive’s aggregate investment in each such entity constitutes less than one percent of
the equity ownership of such entity, (y) the investment in the entity is in securities traded on any national securities exchange,
and (z) Executive is not a controlling person of, or a member of a group which controls, such entity; or (ii) if (A) except with
the prior written consent of the Employer, Executive has less than a 10% interest in the investment in question, (B) except with
the prior written consent of the Employer, Executive does not have the role of a general partner or managing member, or any similar
role, (C) the investment is not an appropriate investment opportunity for the Employer, and (D) the investment activity is not
directly competitive with the businesses of the Employer.

 

(d)          Employer
Property. Executive acknowledges that all originals and copies of materials, records and documents generated by him or coming
into his possession during his employment by the Employer are the sole property of the Employer (the “Employer Property”).
During his employment, and at all times thereafter, Executive shall not remove, or cause to be removed, from the premises of the
Employer, copies of any record, file, memorandum, document, computer related information or equipment, or any other item relating
to the business of the Employer, except in furtherance of his duties under this Agreement. When Executive terminates his employment
with the Employer, or upon request of the Employer at any time, Executive shall promptly deliver to the Employer all originals
and copies of the Employer Property in his possession or control and shall not retain any originals or copies in any form, except
that Executive may retain a copy of his Rolodex or other similar contact list. The Employer Property excludes any personal property
of Executive.

 

(e)          No
Disparagement. For one (1) year following termination of Executive’s employment for any reason, Executive shall not intentionally
disclose or cause to be disclosed any negative, adverse or derogatory comments or information about (i) the Employer and its affiliates
or subsidiaries; (ii) any product or service provided by the Employer its affiliates or subsidiaries; or (iii) the Employer’s
and its affiliates’ or subsidiaries’ prospects for the future. For one (1) year following termination of Executive’s
employment for any reason, the Employer shall not disclose or cause to be disclosed any negative, adverse or derogatory comments
or information about Executive. Nothing in this Section shall prohibit either the Employer or Executive from testifying truthfully
in any legal or administrative proceeding.

 

(f)          Remedies.
Executive declares that the foregoing limitations in Sections 8(a) through 8(e) above are reasonable and necessary for the adequate
protection of the business and the goodwill of the Employer. If any restriction contained in this Section 8 shall be deemed to
be invalid, illegal or unenforceable by reason of the extent, duration or scope thereof, or otherwise, then the court making such
determination shall have the right to reduce such extent, duration, scope, or other provisions hereof to make the restriction consistent
with applicable law, and in its reduced form such restriction shall then be enforceable in the manner contemplated hereby. In the
event that Executive breaches any of the promises contained in this Section 8, Executive acknowledges that the Employer’s
remedy at law for damages will be inadequate and that the Employer will be entitled to specific performance, a temporary restraining
order or preliminary injunction to prevent Executive’s prospective or continuing breach and to maintain the status quo. The
existence of this right to injunctive relief, or other equitable relief, or the Employer’s exercise of any of these rights,
shall not limit any other rights or remedies the Employer may have in law or in equity, including, without limitation, the right
to arbitration contained in Section 9 hereof and the right to compensatory and monetary damages. Executive hereby agrees to waive
his right to a jury trial with respect to any action commenced to enforce the terms of this Agreement. Executive shall have remedies
comparable to those of the Employer as set forth above in this Section 8(f) if the Employer breaches Section 8(e).

 

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(g)          Transition.
Regardless of the reason for his departure from the Employer, Executive agrees that at the Employer’s sole costs and expense,
for a period of not more than 30 days after termination of Executive, he shall take all steps reasonably requested by the Employer
to effect a successful transition of client and customer relationships to the person or persons designated by the Employer, subject
to Executive’s obligations to his new employer.

 

(h)          Cooperation
with Respect to Litigation. During the Employment Period and at all times thereafter, Executive agrees to give prompt written
notice to the Employer of any claim relating to the Employer and to cooperate fully, in good faith and to the best of his ability
with the Employer in connection with any and all pending, potential or future claims, investigations or actions which directly
or indirectly relate to any action, event or activity about which Executive may have knowledge in connection with or as a result
of his employment by the Employer hereunder. Such cooperation will include all assistance that the Employer, its counsel or its
representatives may reasonably request, including reviewing documents, meeting with counsel, providing factual information and
material, and appearing or testifying as a witness; provided, however, that the Employer will reimburse Executive for all reasonable
expenses, including travel, lodging and meals, incurred by him in fulfilling his obligations under this Section 8(h) and, except
as may be required by law or by court order, should Executive then be employed by an entity other than the Employer, such cooperation
will not materially interfere with Executive’s then current employment.

 

(i)          Survival.
The provisions of this Section 8 and any other provisions relating to the enforcement thereof shall survive (i) the termination
or expiration of this Agreement, and (ii) termination of Executive’s employment.

 

9.          Arbitration.
Any controversy or claim arising out of or relating to this Agreement or the breach of this Agreement (other than a controversy
or claim arising under Section 8, to the extent necessary for the Employer (or its affiliates, where applicable) to avail itself
of the rights and remedies referred to in Section 8(f)) that is not resolved by Executive and the Employer (or its affiliates,
where applicable) shall be submitted to arbitration in New York, New York in accordance with New York law and the procedures of
the American Arbitration Association. The determination of the arbitrator(s) shall be conclusive and binding on the Employer (or
its affiliates, where applicable) and Executive and judgment may be entered on the arbitrator(s)’ award in any court having
jurisdiction.

 

10.         Conflicting
Agreements. Executive hereby represents and warrants that the execution of this Agreement and the performance of his obligations
hereunder will not breach or be in conflict with any other agreement to which he is a party or is bound, and that he is not now
subject to any covenants against competition or similar covenants which would affect the performance of his obligations hereunder.

 

11.         Notices.
All notices or other communications required or permitted to be given hereunder shall be in writing and shall be delivered by hand
and or sent by prepaid telex, cable or other electronic devices or sent, postage prepaid, by registered or certified mail or telecopy
or overnight courier service and shall be deemed given when so delivered by hand, telexed, cabled or telecopied, or if mailed,
three days after mailing (one business day in the case of express mail or overnight courier service), as follows:

 

    	14

    	 

    

 

	(a)	if to Executive:
	 	 
	 	Benjamin Harris, at the address shown on the execution page hereof.
	 	 
	 	and:
	 	 
	 	Kasowitz, Benson, Torres & Friedman LLP
	 	1633 Broadway
	 	New York, New York 10019
	 	Attn: Eric J. Wallach
	 	 
	(b)	if to the Employer:
	 	 
	 	Gramercy Capital Corp.
	 	420 Lexington Avenue
	 	New York, New York 10170
	 	Attn: Corporate Secretary
	 	 
	 	and:
	 	Goodwin Procter LLP
	 	Exchange Place
	 	Boston, Massachusetts  02109
	 	Attention:  Daniel Adams

 

or such other address as either party may from time
to time specify by written notice to the other party hereto.

 

12.         Amendments.
No amendment, modification or waiver in respect of this Agreement shall be effective unless it shall be in writing and signed by
the party against whom such amendment, modification or waiver is sought.

 

13.         Severability.
If any provision of this Agreement (or any portion thereof) or the application of any such provision (or any portion thereof) to
any person or circumstances shall be held invalid, illegal or unenforceable in any respect by a court of competent jurisdiction,
such invalidity, illegality or unenforceability shall not affect any other provision hereof (or the remaining portion hereof) or
the application of such provision to any other persons or circumstances.

 

14.         Withholding.
The Employer shall be entitled to withhold from any payments or deemed payments any amount of tax withholding it determines to
be required by law.

 

15.         Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of both parties and their respective successors
and assigns, including any corporation with which or into which the Employer may be merged or which may succeed to its assets or
business, provided, however, that the obligations of Executive are personal and shall not be assigned by him. This Agreement shall
inure to the benefit of and be enforceable by Executive’s personal and legal representatives, executors, administrators,
assigns, heirs, distributees, devisees and legatees.

 

16.         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 the other party.

 

    	15

    	 

    
 

17.         Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York applicable to agreements
made and to be performed entirely within such State, without regard to the conflicts of law principles of such State.

 

18.         Choice
of Venue. Subject to the provisions of Section 9, Executive agrees to submit to the jurisdiction of the United States District
Court for the Southern District of New York or the Supreme Court of the State of New York, New York County, for the purpose of
any action to enforce any of the terms of this Agreement.

 

19.         Limitation
of Severance Payments

 

(a)          Anything
in this Agreement to the contrary notwithstanding, in the event that the amount of any compensation, payment or distribution by
the Employer to or for the benefit of Executive, whether paid or payable or distributed or distributable pursuant to the terms
of this Agreement or otherwise, calculated in a manner consistent with Section 280G of the Internal Revenue Code of 1986, as amended
(the “Code”) and the applicable regulations thereunder (the “Severance Payments”), would be subject to
the excise tax imposed by Section 4999 of the Code, the following provisions shall apply:

 

(i)          If
the Severance Payments, reduced by the sum of (1) the Excise Tax and (2) the total of the Federal, state, and local income and
employment taxes payable by the Executive on the amount of the Severance Payments which are in excess of the Threshold Amount,
are greater than or equal to the Threshold Amount, the Executive shall be entitled to the full benefits payable under this Agreement.

 

(ii)         If
the Threshold Amount is less than (x) the Severance Payments, but greater than (y) the Severance Payments reduced by the sum of
(1) the Excise Tax and (2) the total of the Federal, state, and local income and employment taxes on the amount of the Severance
Payments which are in excess of the Threshold Amount, then the Severance Payments shall be reduced (but not below zero) to the
extent necessary so that the sum of all Severance Payments shall not exceed the Threshold Amount. In such event, the Severance
Payments shall be reduced in the following order: (1) cash payments not subject to Section 409A of the Code; (2) cash payments
subject to Section 409A of the Code; (3) equity-based payments and acceleration; and (4) non-cash forms of benefits. To the extent
any payment is to be made over time (e.g., in installments, etc.), then the payments shall be reduced in reverse chronological
order.

 

(b)          For
the purposes of this Section 19, “Threshold Amount” shall mean three times the Executive’s “base amount”
within the meaning of Section 280G(b)(3) of the Code and the regulations promulgated thereunder less one dollar ($1.00); and “Excise
Tax” shall mean the excise tax imposed by Section 4999 of the Code, and any interest or penalties incurred by the Executive
with respect to such excise tax.

 

(c)          The
determination as to which of the alternative provisions of Section 19(a) shall apply to Executive shall be made by a nationally
recognized accounting firm selected by the Employer (the “Accounting Firm”), which shall provide detailed supporting
calculations both to the Employer and Executive within 15 business days of the Termination Date, if applicable, or at such earlier
time as is reasonably requested by the Employer or Executive. For purposes of determining which of the alternative provisions of
Section 19(a) shall apply, the Executive shall be deemed to pay federal income taxes at the highest marginal rate of federal income
taxation applicable to individuals for the calendar year in which the determination is to be made, and state and local income taxes
at the highest marginal rates of individual taxation in the state and locality of Executive’s residence on the Termination
Date, net of the maximum reduction in federal income taxes which could be obtained from deduction of such state and local taxes.
Any determination by the Accounting Firm shall be binding upon the Employer and Executive.

 

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20.         Section
409A.

 

(a)          Anything
in this Agreement to the contrary notwithstanding, if at the time of Executive’s separation from service within the meaning
of Section 409A of Code, the Employer determines that Executive is a “specified employee” within the meaning of Section
409A(a)(2)(B)(i) of the Code, then to the extent any payment or benefit that Executive becomes entitled to under this Agreement
would be considered deferred compensation subject to the 20 percent additional tax imposed pursuant to Section 409A(a) of the Code
as a result of the application of Section 409A(a)(2)(B)(i) of the Code, such payment shall not be payable and such benefit shall
not be provided until the date that is the earlier of (A) six months and one day after Executive’s separation from service,
or (B) Executive’s death. If any such delayed cash payment is otherwise payable on an installment basis, the first payment
shall include a catch-up payment covering amounts that would otherwise have been paid during the six-month period but for the application
of this provision, and the balance of the installments shall be payable in accordance with their original schedule. Any such delayed
cash payment shall earn interest at a simple annual rate equal to 5% per annum, from the date such payment would have been made
if not for the operation of this Section until the payment is actually made.

 

(b)          The
parties intend that this Agreement will be administered in accordance with Section 409A of the Code. To the extent that any provision
of this Agreement is ambiguous as to its compliance with Section 409A of the Code, the provision shall be read in such a manner
so that all payments hereunder comply with Section 409A of the Code. The parties agree that this Agreement may be amended, as reasonably
requested by either party, and as may be necessary to fully comply with Section 409A of the Code and all related rules and regulations
in order to preserve the payments and benefits provided hereunder without additional cost to either party.

 

(c)          To
the extent that any payment or benefit described in this Agreement constitutes “non-qualified deferred compensation”
under Section 409A of the Code, and to the extent that such payment or benefit is payable upon the Executive’s termination
of employment, then such payments or benefits shall be payable only upon the Executive’s “separation from service.”
The determination of whether and when a separation from service has occurred shall be made in accordance with the presumptions
set forth in Treasury Regulation Section 1.409A-1(h).

 

(d)          The
Employer makes no representation or warranty and shall have no liability to Executive or any other person if any provisions of
this Agreement are determined to constitute deferred compensation subject to Section 409A of the Code but do not satisfy an exemption
from, or the conditions of, such Section.

 

21.         Other
Existing Agreements. Other than (i) that certain Employment Agreement dated June 8, 2011 between Executive and Fixed Income
Discount Advisory Company and (ii) that certain Restricted Stock Award Agreement dated June 8, 2011 between Executive and Fixed
Income Discount Advisory Company, which Executive has disclosed to the Employer, Executive represents to the Employer that he is
not subject or a party to any employment or consulting agreement, non-competition covenant or other agreement, covenant or understanding
which might prohibit him from executing this Agreement or limit his ability to fulfill his responsibilities hereunder.

 

    	17

    	 

    
 

22.         Entire
Agreement. This Agreement contains the entire agreement and understanding between the parties hereto with respect to the subject
matter hereof and supersedes all prior agreements and understandings relating to such subject matter. The parties hereto shall
not be liable or bound to any other party in any manner by any representations, warranties or covenants relating to such subject
matter except as specifically set forth herein.

 

23.         Paragraph
Headings. Section headings used in this Agreement are included for convenience of reference only and will not affect the meaning
of any provision of this Agreement.

 

[Remainder of
page intentionally left blank] 

 

    	18

    	 

    

 

IN WITNESS WHEREOF, this Agreement
is entered into as of the date and year first written above, and is being executed on this 12th day of June, 2012.

 

	 	GRAMERCY CAPITAL CORP.
	 	 	 	 
	 	By:	/s/ Jon W. Clark
	 	 	Name: 	Jon W. Clark
	 	 	Title:	Chief Financial Officer and Treasurer
	 	 	 	 
	 	EXECUTIVE:
	 	 
	 	/s/ Benjamin Harris
	 	Benjamin Harris

 

[Signature Page to Employment and Noncompetition Agreement]

 

    	 

    	 

    

 

EXHIBIT
A

 

RESTRICTED STOCK AND RESTRICTED STOCK
UNIT AWARDS

 

Definitions

 

As used in this Exhibit A:

 

“Committee” means the Compensation
Committee of the Employer’s Board of Directors.

 

“Common Stock” means the Employer’s
Common Stock, par value $.001 per share, either currently existing or authorized hereafter.

 

“Common Stock Price” means,
as of a particular date, the average of the Fair Market Values of one share of the Common Stock for the thirty (30) trading days
ending on, and including, such date (or, if such date is not a trading day, the most recent trading day immediately preceding such
date); provided that appropriate adjustment will be made if any of such trading days is the ex-dividend date for a dividend
or other distribution on the Common Stock and provided, further, that if such date is the date upon which a Transactional
Change-in-Control occurs, the Common Stock Price as of such date shall be equal to the fair market value in cash, as determined
by the Committee, of the total consideration paid or payable in the transaction resulting in the Transactional Change-in-Control
for one share of Common Stock.

 

“Fair Market Value” per share
of Common Stock as of a particular date means (i) if shares of Common Stock are then listed on a national stock exchange, the closing
sales price per share on the exchange for such date, as determined by the Committee, (ii) if shares of Common Stock are not then
listed on a national stock exchange but are then traded on an over-the-counter market, the average of the closing bid and asked
prices for the shares of Common Stock in such over-the-counter market for such date, as determined by the Committee, or (iii) if
shares of Common Stock are not then listed on a national stock exchange or traded on an over-the-counter market, such value as
the Committee in its discretion may in good faith determine; provided that, where the shares of Common Stock are so listed or traded,
the Committee may make such discretionary determinations where the shares of Common Stock have not been traded for 10 trading days.

 

“Measurement Stock Price” means,
as of a particular date, the highest Common Stock Price where each of the days included in the 30-day period used to calculate
such Common Stock Price is within the period of one hundred and twenty (120) days immediately preceding such date; provided, however,
that if such date is the date upon which a Transactional Change-in-Control occurs, the Measurement Stock Price shall be equal to
the Common Stock Price on such date.

 

“Transactional Change-in-Control”
means (a) a Change-in-Control described in clause (a) of the definition thereof where the “person” or “group”
makes a tender offer for Common Stock, or (b) a Change-in-Control described in clauses (b) or (c)(1) of the definition thereof.

 

    	 

    	 

    

 

Restricted Stock Awards (Time-Based Vesting)

 

		1.	Plan: Gramercy Capital Corp. 2012 Inducement Equity Incentive
Plan (the “Plan”)

 

		2.	Grant Date: July 1, 2012

 

		3.	Total Number of Shares: 150,000

 

		4.	Dividends: Dividends shall be paid to Executive in cash
at each dividend payment date.

 

		5.	Vesting: Subject to acceleration as set forth in the
Agreement, the shares shall vest, if and as employment continues, at the times (each, a “Vesting Date”) and in the
amounts set forth below:

 

	
        Vesting
        Date
	 	
        Number of
        Shares

	June 30, 2013	 	30,000
	June 30, 2014	 	30,000
	June 30, 2015	 	30,000
	June 30, 2016	 	30,000
	June 30, 2017	 	30,000

 

Restricted Stock Units (Performance-Based Vesting)

 

		1.	Plan: The Plan

 

		2.	Grant Date: July 1, 2012

 

		3.	Total Number of Units: 450,000

 

		4.	Dividends: Dividend equivalents will accrue on the restricted
stock units from the grant date and be paid, with respect to each dividend equivalent, if and when it vests.

 

		5.	Settlement: Restricted stock units will be settled upon
vesting.

 

		6.	Form of Payment of Units: Shares of Common Stock

 

		7.	Vesting: Subject to acceleration as set forth in the
Agreement, the following is the vesting schedule and stock price targets (the “Stock Price Targets”) for the restricted
stock units:

 

	Vesting Date	 	Number of Units	 	 	Stock Price Target	 
	June 30, 2013	 	 	90,000	 	 	$	3.00	 
	June 30, 2014	 	 	90,000	 	 	$	3.50	 
	June 30, 2015	 	 	90,000	 	 	$	4.00	 
	June 30, 2016	 	 	90,000	 	 	$	4.50	 
	June 30, 2017	 	 	90,000	 	 	$	5.00	 

 

The Stock Price Targets will be
reduced by the per share amount of all dividends declared between July 1, 2012 and the Vesting Date.

 

    	 

    	 

    
 

As of each Vesting Date, the number of restricted
stock units set forth beside such Vesting Date shall vest if (i) Executive remains continuously employed through such date and
(ii) either of the following performance hurdles is achieved: (A) the Employer achieves funds from operations (“FFO”)
per diluted share for the most recent prior fiscal year at an amount to be agreed upon by Executive and the Employer within 30
days of the Grant Date, or (B) the Employer’s Measurement Stock Price equals or exceeds the Stock Price Target for such Vesting
Date. If the performance hurdles are not met as of any Vesting Date, the units scheduled to vest on such date will vest as of any
future Vesting Date if (i) Executive remains continuously employed through such date and (ii) either of the following performance
hurdles is achieved: (A) the FFO per diluted share hurdles have been met on a cumulative basis from 2012 through the most recent
fiscal year prior to such future vesting date or (B) the Employer’s Measurement Stock Price equals or exceeds the Stock Price
Target for such Vesting Date.

 

In the event of a Change-in-Control, the
performance hurdles shall be deemed to be achieved with respect to a number of restricted stock units equal to (i) the greater
of (A) a number of restricted stock units equal to the Change-in-Control Amount listed below based on the attainment of the corresponding
Measurement Stock Price as of the date of the Change-in-Control, and (B) if the FFO hurdles have been met on a cumulative basis
through the most recent quarter prior to the consummation of the Change-in-Control, then a number of restricted stock units equal
to 450,000 multiplied by a fraction, the numerator of which is the number of fiscal quarters that have elapsed from the Grant Date
to and including the most recently completed fiscal quarter, and the denominator of which is 20, less (ii) the number of restricted
stock units that have vested prior to the Change-in-Control. All unvested restricted stock units with respect to which performance
hurdles are not deemed to be achieved as of the Change-in-Control will be forfeited as of such date. Following a Change-in-Control,
performance hurdles will cease to apply to restricted stock units with respect to which performance hurdles are deemed to be achieved,
and such restricted stock units will vest in equal installments on each of the remaining Vesting Dates subject to continued employment
through each of such Vesting Dates. Following a Change-in-Control, remaining restricted stock units are treated solely as time-based
equity awards for the purpose of potential acceleration in connection with termination of Executive.

 

	
        Change-in-Control
        Amount
	 	
        Measurement
        Stock Price

	0	 	$0.00 - $2.99
	90,000	 	$3.00 - $3.49
	180,000	 	$3.50 - $3.99
	270,000	 	$4.00 - $4.49
	360,000	 	$4.50 - $4.99
	450,000	 	$5.00 +

 

    	 

    	 

    

 

EXHIBIT B

 

OUTPERFORMANCE PLAN AWARD

 

Executive shall be entitled to receive an award under the Outperformance
Plan pursuant to which Executive may earn up to $6,000,000 of LTIP Units in GKK Capital LP. The terms of the Outperformance Plan
shall be substantially as set forth in the form of award agreement attached hereto as Exhibit C.

 

    	 

    	 

    

 

EXHIBIT
C

 

OUTPERFORMANCE PLAN AWARD AGREEMENTEXECUTION COPY

 

GRAMERCY CAPITAL CORP.

GKK CAPITAL LP

 

2012 LONG-TERM OUTPERFORMANCE PLAN

 

AWARD AGREEMENT

 

Name of Grantee:                              (the “Grantee”)

No. of LTIP Units:

Maximum Award Dollar Amount:

Grant Date: July 1, 2012

 

This AWARD AGREEMENT (this “Agreement”)
is entered into by Gramercy Capital Corp., a Maryland corporation (the “Company”), GKK Capital LP, a Delaware
limited partnership through which the Company conducts substantially all of its operations (the “Partnership”),
and the Grantee as of the Grant Date.

 

WHEREAS, the Company has adopted the 2012
Long-Term Outperformance Plan (the “Outperformance Plan”) to provide incentive compensation to attract and/or
retain employees of the Company and this Agreement evidences an award to the Grantee under the Outperformance Plan (the “Award”),
which is subject to the terms and conditions set forth herein;

 

WHEREAS, this Award is being made to the
Grantee pursuant to the Employment and Non-Competition Agreement, dated as of June    , 2012 and effective as of July 1, 2012, by
and between the Company and the Grantee in connection with the hiring of the Grantee and is intended to constitute an employment
inducement award pursuant to Section 303A.08 of the New York Stock Exchange Listed Company Manual; and

 

WHEREAS, the Company maintains the Gramercy
Capital Corp. 2012 Inducement Equity Incentive Plan (as amended from time to time, the “Plan”) and capitalized
terms used but not defined herein shall have the respective meanings ascribed thereto by the Plan.

 

NOW, THEREFORE, it is hereby agreed as follows:

 

1.            Award.

 

(a)          The
Partnership hereby grants the Grantee the number of LTIP Units set forth above (the “Restricted Units”). The
Restricted Units are subject to the terms and conditions of this Agreement, and are also subject to the provisions of the Plan.
The Plan is hereby incorporated herein by reference as though set forth herein in its entirety. The Grantee acknowledges that the
granting of this Award is a material inducement to the Grantee agreeing to accept employment by the Company.

 

(b)          In
order to determine the number of Restricted Units earned by the Grantee as of each of the Valuation Date, the First Interim Valuation
Date, the Second Interim Valuation Date and the Third Interim Valuation Date, the Committee will determine the Measurement Stock
Price as of each of the Valuation Date, the First Interim Valuation Date, the Second Interim Valuation Date and the Third Interim
Valuation Date.

 

    	 

    	 

    
 

(c)          In
the event the Measurement Stock Price as of the First Interim Valuation Date equals or exceeds the Minimum Stock Price as of such
date, then the Grantee shall earn as of the First Interim Valuation Date a number of Restricted Units equal to the First Interim
Amount divided by the Measurement Stock Price as of the First Interim Valuation Date.

 

(d)          In
the event the Measurement Stock Price as of the Second Interim Valuation Date equals or exceeds the Minimum Stock Price as of such
date, then the Grantee shall earn as of the Second Interim Valuation Date a number of Restricted Units equal the amount, if any,
by which (i) the Second Interim Amount divided by the Measurement Stock Price as of the Second Interim Valuation Date exceeds (ii)
the number of Restricted Units, if any, previously earned by the Grantee pursuant to Section 1(c).

 

(e)          In
the event the Measurement Stock Price as of the Third Interim Valuation Date equals or exceeds the Minimum Stock Price as of such
date, then the Grantee shall earn as of the Third Interim Valuation Date a number of Restricted Units equal the amount, if any,
by which (i) the Third Interim Amount divided by the Measurement Stock Price as of the Third Interim Valuation Date exceeds (ii)
the number of Restricted Units, if any, previously earned by the Grantee pursuant to Sections 1(c) and 1(d).

 

(f)          In
the event the Measurement Stock Price as of the Valuation Date equals or exceeds the Minimum Stock Price as of such date, then
the Grantee shall earn as of the Valuation Date a number of Restricted Units equal to the amount, if any, by which (i) the Valuation
Amount divided by the Measurement Stock Price as of the Valuation Date exceeds (ii) the number of Restricted Units, if any, previously
earned by the Grantee pursuant to Sections 1(c), 1(d) and 1(e). As of the Valuation Date, the Grantee shall
automatically forfeit any Restricted Units that are not earned as of or prior to the Valuation Date pursuant to Sections 1(c),
1(d), 1(e) or 1(f). For avoidance of doubt, no Restricted Units shall be earned pursuant to Sections 1(c),
1(d) or 1(e) on or after the Valuation Date.

 

(g)          If
the total number of Restricted Units earned as of the First Interim Valuation Date, the Second Interim Valuation Date, the Third
Interim Valuation Date or the Valuation Date is greater than the number of Restricted Units that have not previously been earned
hereunder, then, upon the Committee’s determination that such Restricted Units have been earned: (i) the Grantee, as of such
date, shall be automatically granted a number of additional LTIP Units equal to the difference, and such additional LTIP Units
shall be added to the Restricted Units and thereby become part of this Award, (ii) the Company and the Partnership shall take such
corporate or partnership action as is necessary to accomplish the grant of such additional LTIP Units, (iii) the Grantee shall
execute and deliver in connection with such grant such documents, comparable to the documents executed and delivered in connection
with this Agreement, as the Company and/or the Partnership reasonably request in order to comply with all applicable legal requirements,
including, without limitation, federal and state securities laws and (iv) thereafter the term Restricted Units will refer collectively
to the Restricted Units prior to such additional grant plus such additional LTIP Units.

 

    	2

    	 

    
 

(h)          The
Grantee shall have no rights to Restricted Units earned pursuant to this Section 1 until the number of such Restricted Units
are determined by the Committee; provided that the Committee shall make the determination of the number of Restricted Units
earned as of the Valuation Date, the First Interim Valuation Date, the Second Interim Valuation Date and Third Interim Valuation
Date reasonably promptly following such date (and in no event later than 74 days after such date) and, following such determination,
any Restricted Units earned will be deemed to have been earned as of the Valuation Date, the First Interim Valuation Date, the
Second Interim Valuation Date and/or the Third Interim Valuation Date, as applicable, for purposes of determining the Grantee’s
rights hereunder.

 

2.            Vesting;
Termination of Grantee’s Employment; Change of Control.

 

(a)          Subject
to the provisions set forth below, the Restricted Units earned pursuant to Section 1 shall become vested as follows: (i)
one-half (1/2) of such Restricted Units shall become vested on June 30, 2016 (the “First Vesting Date”); and
(ii) one-half (1/2) of the Restricted Units shall become vested on June 30, 2017. Except as provided in Sections 2(b) and
2(c) below, if at any time the Grantee shall cease to be an employee of the Company for any reason, then all Restricted
Units that remain unearned or unvested at such time shall automatically and immediately be forfeited by the Grantee.

 

(b)          If
the Grantee shall cease to be an employee of the Company due to (i) a termination without Cause (as defined in the Employment Agreement)
by the Company, (ii) a termination with Good Reason (as defined in the Employment Agreement) by the Grantee or (iii) the death
or Disability of the Grantee (each of (i), (ii) and (iii), a “Qualified Termination”) prior to the Valuation
Date, then the date the Grantee ceases to be an employee of the Company shall be deemed to be the Valuation Date and the determination
of how many, if any, Restricted Units are earned shall be based on the Measurement Stock Price on such date; provided that
the amount of Restricted Units earned on such date shall be equal to the amount determined pursuant to Section 1(f) multiplied
by a fraction, the numerator of which is the number of days from and including the Grant Date to and including the earlier of the
date that is twelve (12) months after the date the Grantee ceases to be an employee of the Company or June 30, 2017, and the denominator
of which is the number of days from and including the Grant Date to and including June 30, 2017. If the Grantee shall cease to
be an employee of the Company due to a Qualified Termination prior to June 30, 2017, then all Restricted Units that are earned
pursuant to this Section 2(b) or prior to the date of a Qualified Termination pursuant to Section 1 shall vest as
of the date of such Qualified Termination.

 

(c)          If
a Change-in-Control occurs on or prior to the Valuation Date, then the date of the Change-in-Control shall be deemed to be the
Valuation Date and the determination of how many, if any, Restricted Units are earned shall be based on the Measurement Stock Price
on such date in accordance with Section 1 and any such earned Restricted Units shall immediately vest. If a Change-in-Control
occurs after the Valuation Date but on or prior to June 30, 2017, then any earned but unvested Restricted Units shall immediately
vest.

 

    	3

    	 

    
 

3.            Payments
by Award Recipients. No amount shall be payable to the Company or the Partnership by the Grantee at any time in respect of
the Restricted Units granted under this Agreement.

 

4.            Distributions.
The holder of the Restricted Units shall be entitled to receive distributions with respect to such Restricted Units to the extent
provided for in the Partnership Agreement. The Distribution Participation Date (as defined in the Partnership Agreement) with respect
to each Restricted Unit shall be the date on which such Restricted Unit is earned pursuant to Section 1.

 

5.            Restrictions
on Transfer. Except as otherwise permitted by the Committee, none of the Restricted Units granted hereunder nor any of the
Class A Units into which such Restricted Units may be converted (the “Award Units”) shall be sold, assigned,
transferred, pledged, hypothecated, given away or in any other manner disposed of or encumbered, whether voluntarily or by operation
of law (each such action a “Transfer”) and the Redemption Right (as defined in the Partnership Agreement) may
not be exercised with respect to the Restricted Units, provided that, at any time after the date that (a) the Restricted
Units vest and (b) is two (2) years after the Grant Date, (i) Restricted Units or Award Units may be Transferred to the Grantee’s
Family Members by gift or domestic relations order, provided that the transferee agrees in writing with the Company and
the Partnership to be bound by all the terms and conditions of this Agreement and that subsequent transfers shall be prohibited
except those in accordance with this Section 5 and (ii) the Redemption Right may be exercised with respect to Award Units,
and Award Units may be Transferred to the Partnership or the Company in connection with the exercise of the Redemption Right, in
accordance with and to the extent otherwise permitted by the terms of the Partnership Agreement. Additionally, all Transfers of
Restricted Units or Award Units must be in compliance with all applicable securities laws (including, without limitation, the Securities
Act of 1933, as amended (the “Securities Act”)) and the applicable terms and conditions of the Partnership Agreement.
In connection with any Transfer of Restricted Units or Award Units, the Partnership may require the Grantee to provide an opinion
of counsel, satisfactory to the Partnership, that such Transfer is in compliance with all federal and state securities laws (including,
without limitation, the Securities Act). Any attempted Transfer of Restricted Units or Award Units not in accordance with the terms
and conditions of this Section 5 shall be null and void, and the Partnership shall not reflect on its records any change
in record ownership of any Restricted Units or Award Units as a result of any such Transfer, shall otherwise refuse to recognize
any such Transfer and shall not in any way give effect to any such Transfer of any Restricted Units or Award Units. This Agreement
is personal to the Grantee, is non-assignable and is not transferable in any manner, by operation of law or otherwise, other than
by will or the laws of descent and distribution.

 

    	4

    	 

    
 

6.            Changes
in Capital Structure. If (i) the Company shall at any time be involved in a merger, consolidation, dissolution, liquidation,
reorganization, exchange of shares, sale of all or substantially all of the assets or stock of the Company or a transaction similar
thereto, (ii) any stock dividend, stock split, reverse stock split, stock combination, reclassification, recapitalization, significant
repurchases of stock or other similar change in the capital structure of the Company, or any distribution to holders of Common
Stock other than regular cash dividends, shall occur or (iii) any other event shall occur which in the judgment of the Committee
necessitates action by way of adjusting the terms of the Award, then the Committee shall take any such action as in its discretion
shall be necessary to maintain the Grantee’s rights hereunder so that they are substantially proportionate to the rights
existing under this Agreement prior to such event, including, without limitation, adjustments in Common Stock Price, Minimum Stock
Price, Target Stock Price and Maximum Stock Price.

 

7.            Definitions.
Capitalized terms used herein without definitions shall have the meanings given to those terms in the Plan. In addition, as used
herein:

 

“Change-in-Control” means:

 

(a)          any
“person,” including a “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act,
but excluding the Company, any entity controlling, controlled by or under common control with the Company, any trustee, fiduciary
or other person or entity holding securities under any employee benefit plan or trust of the Company or any such entity, and the
Grantee and any “group” (as such term is used in Section 13(d)(3) of the Exchange Act) of which the Grantee is a member),
is or becomes the “beneficial owner” (as defined in Rule 13(d)(3) under the Exchange Act), directly or indirectly,
of securities of the Company representing 25% or more of either (1) the combined voting power of the Company’s then outstanding
securities or (2) the then outstanding Common Stock (or other similar equity interest, in the case of a company other than a corporation),
in either such case other than as a result of an acquisition of securities directly from the Company; or

 

(b)          there
shall occur any consolidation or merger of the Company that would result in the voting securities of the Company outstanding immediately
prior to such merger or consolidation representing (either by remaining outstanding or by being converted into voting securities
of the surviving entity) less than 50% of the total voting power of the voting securities of the surviving entity outstanding immediately
after such merger or consolidation or ceasing to have the power to elect at least a majority of the board of directors or other
governing body of such surviving entity; or

 

(c)          there
shall occur (1) any sale, lease, exchange or other transfer (in one transaction or a series of transactions contemplated or arranged
by any party as a single plan) of all or substantially all of the assets of the Company, other than a sale or disposition by the
Company of all or substantially all of the Company’s assets to an entity at least 50% of the combined voting power of the
voting securities of which are owned by “persons” (as defined above) in substantially the same proportion as their
ownership of the Company, as applicable, immediately prior to such sale, or (2) the approval by shareholders of the Company, as
applicable, of any plan or proposal for the liquidation or dissolution of the Company, as applicable; or

 

    	5

    	 

    
 

(d)          the
members of the Board of Directors of the Company (the “Board”) at the beginning of any consecutive 24-calendar-month
period (the “Incumbent Directors”) cease for any reason other than due to death to constitute at least a majority
of the members of the Board; provided that any director whose election, or nomination for election by the Company’s
shareholders was approved or ratified by a vote of at least a majority of the Incumbent Directors shall be deemed to be an Incumbent
Director.

 

Notwithstanding the foregoing, a Change-in-Control
shall not be deemed to have occurred upon the sale, lease, exchange or other transfer by the Company or its direct and indirect
subsidiaries of (1) all of their collateral management agreements (or their rights thereunder) with respect to the assets owned
by the indirect subsidiaries of the Company that have issued CDO bonds that are outstanding as of the date hereof (the “CDO
Entities”), (2) all or substantially all of their interests in (or the underlying assets of) the CDO Entities, and/or
(3) all or substantially all of the assets of the Company and its direct and indirect subsidiaries relating to the CDO Entities
or the Company’s mortgage business generally.

 

“Class A Units” has the
meaning given to that term in the Partnership Agreement.

 

“Common Stock” means
the Company’s Common Stock, par value $.001 per share, either currently existing or authorized hereafter.

 

“Common Stock Price”
means, as of a particular date, the average of the Fair Market Values of one share of the Common Stock for the thirty (30) trading
days ending on, and including, such date (or, if such date is not a trading day, the most recent trading day immediately preceding
such date); provided that appropriate adjustment will be made if any of such trading days is the ex-dividend date for a
dividend or other distribution on the Common Stock and provided, further, that if such date is the date upon which
a Transactional Change-in-Control occurs, the Common Stock Price as of such date shall be equal to the fair market value in cash,
as determined by the Committee, of the total consideration paid or payable in the transaction resulting in the Transactional Change-in-Control
for one share of Common Stock.

 

“Disability” means, unless
otherwise provided in any Employment Agreement, a disability which renders the Grantee incapable of performing all of his material
duties even with a reasonable accommodation on a full-time basis for the entire period of four consecutive months or any 120 days
in a 180-day period.

 

“Employment Agreement”
means, as of a particular date, the Grantee’s employment agreement with the Company or the Partnership in effect as of that
date.

 

“Exchange Act” means
the Securities Exchange Act of 1934, as amended.

 

    	6

    	 

    
 

“Fair Market Value” per
share of Common Stock as of a particular date means (i) if shares of Common Stock are then listed on a national stock exchange,
the closing sales price per share on the exchange for such date, as determined by the Committee, (ii) if shares of Common Stock
are not then listed on a national stock exchange but are then traded on an over-the-counter market, the average of the closing
bid and asked prices for the shares of Common Stock in such over-the-counter market for such date, as determined by the Committee,
or (iii) if shares of Common Stock are not then listed on a national stock exchange or traded on an over-the-counter market, such
value as the Committee in its discretion may in good faith determine; provided that, where the shares of Common Stock are
so listed or traded, the Committee may make such discretionary determinations where the shares of Common Stock have not been traded
for 10 trading days.

 

“Family Member” of a
Grantee, means the Grantee’s child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling,
niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive
relationships, any person sharing the Grantee’s household (other than a tenant of the Grantee), a trust in which these persons
(or the Grantee) own more than 50% of the beneficial interest, a foundation in which these persons (or the Grantee) control the
management of assets, and any other entity in which these persons (or the Grantee) own more than 50% of the voting interests.

 

“First Interim Amount”
means, as of the First Interim Valuation Date, the dollar amount (as a percentage of the Maximum Award Dollar Amount) set forth
below opposite the Measurement Stock Price as of such date:

 

	Measurement Stock Price	 	Dollar Amount	 
	Minimum Stock Price	 	 	2.4	%
	Target Stock Price	 	 	7.2	%
	Maximum Stock Price or higher	 	 	12	%

 

If the Measurement Stock Price as of the First
Interim Valuation Date is not exactly equal to the Minimum Stock Price, Target Stock Price or Maximum Stock Price as of such date,
the dollar amount shall be determined by a straight-line interpolation between the amounts for the Minimum Stock Price and the
Maximum Stock Price as of such date; provided, however, that in no event will the dollar amount exceed the dollar
amount set forth in the table above for the Maximum Stock Price. In addition, for purposes of the table above, the Minimum Stock
Price, Target Stock Price and Maximum Stock Price will be as of the last day in the 30-day period actually used to calculate the
Measurement Stock Price as of the First Interim Valuation Date such that dividends and distributions with an ex-dividend date after
the last day of such 30-day period (even if prior to the First Interim Valuation Date) will not reduce the Minimum Stock Price,
Target Stock Price and Maximum Stock Price. 

 

“First Interim Valuation Date”
means June 30, 2013.

 

“LTIP Units” means LTIP
Units of the Partnership.

 

    	7

    	 

    
 

“Maximum Award Dollar Amount”
means the amount set forth opposite such term as first set forth above.

 

“Maximum Stock Price”
means, as of a particular date, $9.00 minus the aggregate amount of dividends and other distributions on one share of Common Stock
with an ex-dividend date occurring between the Grant Date and such date (excluding dividends and distributions paid in the form
of additional shares of Common Stock).

 

“Measurement Stock Price”
means, as of a particular date, the highest Common Stock Price where each of the days included in the 30-day period used to calculate
such Common Stock Price is within the period of one hundred and twenty (120) days immediately preceding such date; provided,
however, that if such date is the date upon which a Transactional Change-in-Control occurs, the Measurement Stock Price
shall be equal to the Common Stock Price on such date; and provided, further, that if such date is (or is deemed
to be) the Valuation Date, the Measurement Stock Price shall be the highest Common Stock Price where each of the days included
in the 30-day period used to calculate such Common Stock Price is within the period of one hundred and eighty (180) days immediately
preceding such date.

 

“Minimum Stock Price”
means, as of a particular date, $5.00 minus the aggregate amount of dividends and other distributions on one share of Common Stock
with an ex-dividend date occurring between the Grant Date and such date (excluding dividends and distributions paid in the form
of additional shares of Common Stock).

 

“Partnership Agreement”
means the Third Amended and Restated Agreement of Limited Partnership of the Partnership dated as of April 19, 2006 among the Company
and the limited partners party thereto, as amended from time to time.

 

“Qualified Termination”
has the meaning set forth in Section 2(b).

 

“Second Interim Amount”
means, as of the Second Interim Valuation Date, the dollar amount (as a percentage of the Maximum Award Dollar Amount) set forth
below opposite the Measurement Stock Price as of such date:

 

	Measurement Stock Price	 	Dollar Amount	 
	Minimum Stock Price	 	 	4.8	%
	Target Stock Price	 	 	14.4	%
	Maximum Stock Price or higher	 	 	24	%

 

    	8

    	 

    
 

If the Measurement Stock Price as of the Second
Interim Valuation Date is not exactly equal to the Minimum Stock Price, Target Stock Price or Maximum Stock Price as of such date,
the dollar amount shall be determined by a straight-line interpolation between the amounts for the Minimum Stock Price and the
Maximum Stock Price as of such date; provided, however, that in no event will the dollar amount exceed the dollar
amount set forth in the table above for the Maximum Stock Price. In addition, for purposes of the table above, the Minimum Stock
Price, Target Stock Price and Maximum Stock Price will be as of the last day in the 30-day period actually used to calculate the
Measurement Stock Price as of the Second Interim Valuation Date such that dividends and distributions with an ex-dividend date
after the last day of such 30-day period (even if prior to the Second Interim Valuation Date) will not reduce the Minimum Stock
Price, Target Stock Price and Maximum Stock Price.

 

“Second Interim Valuation Date”
means June 30, 2014.

 

“Target Stock Price”
means, as of a particular date, $7.00 minus the aggregate amount of dividends and other distributions on one share of Common Stock
with an ex-dividend date occurring between the Grant Date and such date (excluding dividends and distributions paid in the form
of additional shares of Common Stock).

 

“Third Interim Amount”
means, as of the Third Interim Valuation Date, the dollar amount (as a percentage of the Maximum Award Dollar Amount) set forth
below opposite the Measurement Stock Price as of such date:

 

	Measurement Stock Price	 	Dollar Amount	 
	Minimum Stock Price	 	 	7.2	%
	Target Stock Price	 	 	21.6	%
	Maximum Stock Price or higher	 	 	36	%

 

If the Measurement Stock Price as of the Third
Interim Valuation Date is not exactly equal to the Minimum Stock Price, Target Stock Price or Maximum Stock Price as of such date,
the dollar amount shall be determined by a straight-line interpolation between the amounts for the Minimum Stock Price and the
Maximum Stock Price as of such date; provided, however, that in no event will the dollar amount exceed the dollar
amount set forth in the table above for the Maximum Stock Price. In addition, for purposes of the table above, the Minimum Stock
Price, Target Stock Price and Maximum Stock Price will be as of the last day in the 30-day period actually used to calculate the
Measurement Stock Price as of the Third Interim Valuation Date such that dividends and distributions with an ex-dividend date after
the last day of such 30-day period (even if prior to the Third Interim Valuation Date) will not reduce the Minimum Stock Price,
Target Stock Price and Maximum Stock Price.

 

“Third Interim Valuation Date”
means June 30, 2015.

 

    	9

    	 

    
 

“Transactional Change-in-Control”
means (a) a Change-in-Control described in clause (a) of the definition thereof where the “person” or “group”
makes a tender offer for Common Stock, or (b) a Change-in-Control described in clauses (b) or (c)(1) of the definition thereof.

 

“Valuation Amount” means,
as of the Valuation Date, the dollar amount (as a percentage of the Maximum Award Dollar Amount) set forth below opposite the Measurement
Stock Price as of such date:

 

	Measurement Stock Price	 	Dollar Amount	 
	Minimum Stock Price	 	 	20	%
	Target Stock Price	 	 	60	%
	Maximum Stock Price or higher	 	 	100	%

 

If the Measurement Stock Price as of the Valuation
Date is not exactly equal to the Minimum Stock Price, Target Stock Price or Maximum Stock Price as of such date, the dollar amount
shall be determined by a straight-line interpolation between the amounts for the Minimum Stock Price and the Maximum Stock Price
as of such date; provided, however, that in no event will the dollar amount exceed the dollar amount set forth in
the table above for the Maximum Stock Price. In addition, for purposes of the table above, the Minimum Stock Price, Target Stock
Price and Maximum Stock Price will be as of the last day in the 30-day period actually used to calculate the Measurement Stock
Price as of the Valuation Date such that dividends and distributions with an ex-dividend date after the last day of such 30-day
period (even if prior to the Valuation Date) will not reduce the Minimum Stock Price, Target Stock Price and Maximum Stock Price.

 

“Valuation Date” means
June 30, 2016.

 

8.            Miscellaneous.

 

(a)          Amendments.
This Agreement may be amended or modified only with the consent of the Company and the Partnership; provided that any amendment
or modification which adversely affects the Grantee must be consented to by the Grantee to be effective as against him.

 

(b)          Incorporation
of Plan. The provisions of the Plan are hereby incorporated by reference as if set forth herein. If and to the extent that
any provision contained in this Agreement is inconsistent with the Plan, this Agreement shall govern.

 

    	10

    	 

    
 

(c)          Effectiveness.
The Grantee shall be admitted as a partner of the Partnership with beneficial ownership of the Restricted Units as of the grant
date set forth above by (i) signing and delivering to the Partnership a copy of this Agreement, and (ii) signing, as a Limited
Partner, and delivering to the Partnership a counterpart signature page to the Partnership Agreement (attached hereto as Exhibit
A). The Partnership Agreement shall be amended to reflect the issuance to the Grantee of the Restricted Units, whereupon the
Grantee shall have all the rights of a Limited Partner of the Partnership with respect to the Restricted Units specified above,
as set forth in the Partnership Agreement, subject, however, to the restrictions and conditions specified herein and in the Partnership
Agreement.

 

(d)          Legend.
The records of the Partnership evidencing the Restricted Units shall bear an appropriate legend, as determined by the Partnership
in its sole discretion, to the effect that such Restricted Units are subject to restrictions as set forth herein and in the Partnership
Agreement.

 

(e)          Compliance
With Law. The Partnership and the Grantee will make reasonable efforts to comply with all applicable securities laws. In addition,
notwithstanding any provision of this Agreement to the contrary, no Restricted Units will become vested or be paid at a time that
such vesting or payment would result in a violation of any such law.

 

(f)          Investment
Representation; Registration. The Grantee hereby makes the covenants, representations and warranties and set forth on Exhibit
B attached hereto. All of such covenants, warranties and representations shall survive the execution and delivery of this Agreement
by the Grantee. The Partnership will have no obligation to register under the Securities Act the Restricted Units or any other
securities issued pursuant to this Agreement or upon conversion or exchange of Restricted Units.

 

(g)          Section
83(b) Election. The Grantee hereby agrees to make an election to include in gross income in the year of transfer the Restricted
Units pursuant to Section 83(b) of the Internal Revenue Code substantially in the form attached hereto as Exhibit C and
to supply the necessary information in accordance with the regulations promulgated thereunder.

 

(h)          Severability.
In the event that one or more of the provisions of this Agreement may be invalidated for any reason by a court, any provision so
invalidated will be deemed to be separable from the other provisions hereof, and the remaining provisions hereof will continue
to be valid and fully enforceable.

 

(i)       
   Governing Law. This Agreement is made under, and will be construed in accordance with, the laws of
the State of New York, without giving effect to the principle of conflict of laws of such State.

 

(j)       
   No Obligation to Continue Position as an Officer or to Employ. Neither the Company nor any affiliate is
obligated by or as a result of this Agreement to continue to have the Grantee as an officer or to employ the Grantee and this
Agreement shall not interfere in any way with the right of the Company or any affiliate to terminate the Grantee as an
officer or employee at any time.

 

    	11

    	 

    
 

(k)          Notices.
Notices hereunder shall be mailed or delivered to the Partnership at its principal place of business and shall be mailed or delivered
to the Grantee at the address on file with the Partnership or, in either case, at such other address as one party may subsequently
furnish to the other party in writing.

 

(l)          Withholding
and Taxes. No later than the date as of which an amount first becomes includible in the gross income of the Grantee for income
tax purposes or subject to the Federal Insurance Contributions Act withholding with respect to the Award, the Grantee will pay
to the Company or, if appropriate, any of its affiliates, or make arrangements satisfactory to the Committee regarding the payment
of, any United States federal, state or local or foreign taxes of any kind required by law to be withheld with respect to such
amount. The obligations of the Company under this Agreement will be conditional on such payment or arrangements, and the Company
and its affiliates shall, to the extent permitted by law, have the right to deduct any such taxes from any payment otherwise due
to the Grantee.

 

(m)         Successors
and Assigns. This Agreement shall be binding upon the Partnership’s successors and assigns, whether or not this Agreement
is expressly assumed.

 

(n)          Employment
Agreement. Except as specifically provided otherwise in this Agreement, any provisions in the Employment Agreement
relating to accelerated vesting or that would otherwise modify the vesting provisions set forth herein in connection with a
termination of employment, a Change of Control or in any other circumstance shall not apply to this Agreement or the
Restricted Units granted hereunder, and the specific terms of this Agreement shall supersede such provisions.

 

[Remainder of page intentionally left blank]

 

    	12

    	 

    

 

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

 

	 	GRAMERCY CAPITAL CORP.
	 	 	 
	 	By:	 
	 	 	 	Name: 	Jon W. Clark
	 	 	 	Title:	Chief Financial Officer and
	 	 	 	 	Treasurer
	 	 	 	 	 
	 	GKK CAPITAL LP
	 	 
	 	By:  Gramercy Capital Corp., its general partner
	 	 	 	 	 
	 	 	By: 	 
	 	 	 	Name:	Jon W. Clark
	 	 	 	Title:	Chief Financial Officer and
	 	 	 	 	Treasurer
	 	 	 	 	 
	 	Grantee
	 	 
	 	 
	 	Name: 

  

[Signature Page to LTIP Unit Award Agreement]

    	 

    	 

    

 

EXHIBIT A

 

FORM OF LIMITED PARTNER
SIGNATURE PAGE

 

The Grantee, desiring to become one of
the within named Limited Partners of GKK Capital LP, hereby accepts all of the terms and conditions of (including, without limitation,
the provisions of Section 15.11 titled “Power of Attorney”), and becomes a party to, the Agreement of Limited Partnership
of GKK Capital LP, as amended through the date hereof (the “Partnership Agreement”). The Grantee agrees that
this signature page may be attached to any counterpart of the Partnership Agreement.

 

	 	Signature Line for Limited Partner:
	 	 
	 	 
	 	Name:  [____]
	 	Date:  July 1, 2012
	 	 
	 	Address of Limited Partner:
	 	 
	 	[_____]

 

    	 

    	 

    

 

EXHIBIT B

 

GRANTEE’S COVENANTS,
REPRESENTATIONS AND WARRANTIES

 

The Grantee hereby represents, warrants
and covenants as follows:

 

(a)          The
Grantee has received and had an opportunity to review the following documents (the “Background Documents”):

 

(i)          The
Company’s latest Annual Report to Stockholders;

 

(ii)         The
Company’s Proxy Statement for its most recent Annual Meeting of Stockholders;

 

(iii)        The
Company’s Report on Form 10-K for the fiscal year most recently ended;

 

(iv)        The
Company’s Form 10-Q for the most recently ended quarter filed by the Company with the Securities and Exchange Commission
since the filing of the Form 10-K described in clause (iii) above;

 

(v)         Each
of the Company’s Current Report(s) on Form 8-K, if any, filed since the end of the fiscal year most recently ended for which
a Form 10-K has been filed by the Company;

 

(vi)        The
Partnership Agreement;

 

(vii)       The
Plan; and

 

(viii)      The
Company’s Certificate of Incorporation, as amended.

 

The Grantee also acknowledges that any delivery
of the Background Documents and other information relating to the Company and the Partnership prior to the determination by the
Partnership of the suitability of the Grantee as a holder of LTIP Units shall not constitute an offer of LTIP Units until such
determination of suitability shall be made.

 

(b)          The
Grantee hereby represents and warrants that

 

(i)          The
Grantee either (A) is an “accredited investor” as defined in Rule 501(a) under the Securities Act of 1933, as amended
(the “Securities Act”), or (B) by reason of the business and financial experience of the Grantee, together
with the business and financial experience of those persons, if any, retained by the Grantee to represent or advise him with respect
to the grant to him of LTIP Units, the potential conversion of LTIP Units into Class A Units of the Partnership (“Common
Units”) and the potential redemption of such Common Units for shares of Common Stock (“REIT Shares”),
has such knowledge, sophistication and experience in financial and business matters and in making investment decisions of this
type that the Grantee (I) is capable of evaluating the merits and risks of an investment in the Partnership and potential investment
in the Company and of making an informed investment decision, (II) is capable of protecting his own interest or has engaged representatives
or advisors to assist him in protecting his interests, and (III) is capable of bearing the economic risk of such investment.

 

    	 

    	 

    
 

(ii)         The
Grantee understands that (A) the Grantee is responsible for consulting his own tax advisors with respect to the application of
the U.S. federal income tax laws, and the tax laws of any state, local or other taxing jurisdiction to which the Grantee is or
by reason of the award of LTIP Units may become subject, to his particular situation; (B) the Grantee has not received or relied
upon business or tax advice from the Company, the Partnership or any of their respective employees, agents, consultants or advisors,
in their capacity as such; (C) the Grantee provides services to the Partnership on a regular basis and in such capacity has access
to such information, and has such experience of and involvement in the business and operations of the Partnership, as the Grantee
believes to be necessary and appropriate to make an informed decision to accept this award of LTIP Units; and (D) an investment
in the Partnership and/or the Company involves substantial risks. The Grantee has been given the opportunity to make a thorough
investigation of matters relevant to the LTIP Units and has been furnished with, and has reviewed and understands, materials relating
to the Partnership and the Company and their respective activities (including, but not limited to, the Background Documents). The
Grantee has been afforded the opportunity to obtain any additional information (including any exhibits to the Background Documents)
deemed necessary by the Grantee to verify the accuracy of information conveyed to the Grantee. The Grantee confirms that all documents,
records, and books pertaining to his receipt of LTIP Units which were requested by the Grantee have been made available or delivered
to the Grantee. The Grantee has had an opportunity to ask questions of and receive answers from the Partnership and the Company,
or from a person or persons acting on their behalf, concerning the terms and conditions of the LTIP Units. The Grantee has relied
upon, and is making its decision solely upon, the Background Documents and other written information provided to the Grantee by
the Partnership or the Company.

 

(iii)        The
LTIP Units to be issued, the Common Units issuable upon conversion of the LTIP Units and any REIT Shares issued in connection with
the redemption of any such Common Units will be acquired for the account of the Grantee for investment only and not with a current
view to, or with any intention of, a distribution or resale thereof, in whole or in part, or the grant of any participation therein,
without prejudice, however, to the Grantee’s right (subject to the terms of the LTIP Units, the Plan and this Agreement)
at all times to sell or otherwise dispose of all or any part of his LTIP Units, Common Units or REIT Shares in compliance with
the Securities Act, and applicable state securities laws, and subject, nevertheless, to the disposition of his assets being at
all times within his control.

 

    	 

    	 

    
 

(iv)        The
Grantee acknowledges that (A) neither the LTIP Units to be issued, nor the Common Units issuable upon conversion of the LTIP Units,
have been registered under the Securities Act or state securities laws by reason of a specific exemption or exemptions from registration
under the Securities Act and applicable state securities laws and, if such LTIP Units or Common Units are represented by certificates,
such certificates will bear a legend to such effect, (B) the reliance by the Partnership and the Company on such exemptions
is predicated in part on the accuracy and completeness of the representations and warranties of the Grantee contained herein, (C)
such LTIP Units, or Common Units, therefore, cannot be resold unless registered under the Securities Act and applicable state securities
laws, or unless an exemption from registration is available, (D) there is no public market for such LTIP Units and Common Units
and (E) neither the Partnership nor the Company has any obligation or intention to register such LTIP Units or the Common Units
issuable upon conversion of the LTIP Units under the Securities Act or any state securities laws or to take any action that would
make available any exemption from the registration requirements of such laws, except, that, upon the redemption of the Common Units
for REIT Shares, the Company may issue such REIT Shares under the Plan and pursuant to a Registration Statement on Form S-8 under
the Securities Act, to the extent that (I) the Grantee is eligible to receive such REIT Shares under the Plan at the time of such
issuance, (II) the Company has filed a Form S-8 Registration Statement with the Securities and Exchange Commission registering
the issuance of such REIT Shares and (III) such Form S-8 is effective at the time of the issuance of such REIT Shares. The Grantee
hereby acknowledges that because of the restrictions on transfer or assignment of such LTIP Units acquired hereby and the Common
Units issuable upon conversion of the LTIP Units which are set forth in the Partnership Agreement or this Agreement, the Grantee
may have to bear the economic risk of his ownership of the LTIP Units acquired hereby and the Common Units issuable upon conversion
of the LTIP Units for an indefinite period of time.

 

(v)         The
Grantee has determined that the LTIP Units are a suitable investment for the Grantee.

 

(vi)        No
representations or warranties have been made to the Grantee by the Partnership or the Company, or any officer, director, shareholder,
agent, or affiliate of any of them, and the Grantee has received no information relating to an investment in the Partnership or
the LTIP Units except the information specified in Paragraph (b) above.

 

(c)          So
long as the Grantee holds any LTIP Units, the Grantee shall disclose to the Partnership in writing such information as may be reasonably
requested with respect to ownership of LTIP Units as the Partnership may deem reasonably necessary to ascertain and to establish
compliance with provisions of the Internal Revenue Code of 1986, as amended (the “Code”), applicable to the
Partnership or to comply with requirements of any other appropriate taxing authority.

 

(d)          The
Grantee hereby agrees to make an election under Section 83(b) of the Code with respect to the LTIP Units awarded hereunder,
and has delivered with this Agreement a completed, executed copy of the election form attached hereto as Exhibit C. The
Grantee agrees to file the election (or to permit the Partnership to file such election on the Grantee’s behalf) within thirty (30)
days after the award of the LTIP Units hereunder with the IRS Service Center at which such Grantee files his personal income tax
returns, and to file a copy of such election with the Grantee’s U.S. federal income tax return for the taxable year in which
the LTIP Units are awarded to the Grantee.

 

    	 

    	 

    
 

(e)          The
address set forth on the signature page of this Agreement is the address of the Grantee’s principal residence, and the Grantee
has no present intention of becoming a resident of any country, state or jurisdiction other than the country and state in which
such residence is sited.

 

    	 

    	 

    

 

EXHIBIT C

 

ELECTION TO INCLUDE
IN GROSS INCOME IN YEAR OF

TRANSFER OF PROPERTY
PURSUANT TO SECTION 83(B)

 

OF THE INTERNAL REVENUE
CODE

 

The undersigned hereby makes an election
pursuant to Section 83(b) of the Internal Revenue Code with respect to the property described below and supplies the following
information in accordance with the regulations promulgated thereunder:

 

		1.	The name, address and taxpayer identification number
of the undersigned are:

 

Name:[_____] (the “Taxpayer”)

 

Address: [_____]

 

Social Security No./Taxpayer Identification
No.: [_____]

 

		2.	Description of property with respect to which the election
is being made:

 

The election is being made with respect to [____] LTIP
Units in GKK Capital LP (the “Partnership”).

 

		3.	The date on which the LTIP Units were transferred is
July 1, 2012. The taxable year to which this election relates is calendar year 2012.

 

		4.	Nature of restrictions to which the LTIP Units are subject:

 

		(a)	With limited exceptions, until the LTIP Units vest, the
Taxpayer may not transfer in any manner any portion of the LTIP Units without the consent of the Partnership.

 

		(b)	The Taxpayer’s LTIP Units vest in accordance with
the vesting provisions described in the Schedule attached hereto. Unvested LTIP Units are forfeited in accordance with the vesting
provisions described in the Schedule attached hereto.

 

		5.	The fair market value at time of transfer (determined
without regard to any restrictions other than restrictions which by their terms will never lapse) of the LTIP Units with respect
to which this election is being made was $0 per LTIP Unit.

 

		6.	The amount paid by the Taxpayer for the LTIP Units was
$0 per LTIP Unit.

 

		7.	A copy of this statement has been furnished to the Partnership
and Gramercy Capital Corp.

 

	 	Dated: 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	Name:

 

    	 

    	 

    

 

SCHEDULE A

 

Vesting Provisions of LTIP Units

 

LTIP Units are subject to time-based and
performance-based vesting. The LTIP Units will only vest if the Taxpayer remains as an employee of Gramercy Capital Corp. (the
“Company”) through June 30, 2017 and the Company’s stock price exceeds a certain amount on such date,
subject to acceleration in the event of certain extraordinary transactions or termination of the Taxpayer’s status as an
employee under specified circumstances. Unvested LTIP Units are subject to forfeiture in the event of failure to vest based on
continued employment or the failure of the Company’s stock price to exceed certain thresholds.

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