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Exhibit 10.1    
    

 
  MANAGEMENT AGREEMENT    
    

        THIS MANAGEMENT AGREEMENT is made as of [    ], 2004 (this "Agreement") by and between Gramercy Capital Corp., a Maryland
corporation (the "Parent"), Gramercy Capital OP LP, a Maryland limited partnership (the "Operating Partnership" and with the Parent, collectively the "Company"), and GKK Manager LLC, a Delaware
limited liability company (the "Manager"). 

 
 

W I T N E S S E T H:    
    

WHEREAS,
the Parent and the Operating Partnership have been formed by SL Green Realty Corp. ("SL Green") to continue SL Green's specialty real estate finance business in a separate company; the Parent
will focus on originating for its own account and acquiring whole loans, subordinate interests in whole loans, mezzanine loans and other fixed income real estate investments; 

WHEREAS,
the Parent expects to qualify as a REIT (as defined below) and intends to conduct its operations primarily through the Operating Partnership, of which the Parent will be the sole general
partner; 

WHEREAS,
the Company desires to have Manager undertake the duties and responsibilities hereinafter set forth on behalf of the Company as provided in this Agreement; and 

WHEREAS,
Manager is willing to render such services on the terms and conditions hereinafter set forth. 

AGREEMENT  

NOW,
THEREFORE, in consideration of the mutual agreements herein set forth, the parties hereto agree as follows: 

	1.
	Definitions.
	(a)
	"Agreement"
has the meaning assigned in the first paragraph.

	(b)
	"Asset
Servicing Agreement" means the Asset Servicing Agreement between Manager and SLG Gramercy Services LLC, dated the date hereof.

	(c)
	"Board
of Directors" means the Board of Directors of the Parent.

	(d)
	"Closing
Date" means the date of this Agreement.

	(e)
	"Code"
means the Internal Revenue Code of 1986, as amended.

	(f)
	"Company"
has the meaning assigned in the first paragraph. All references herein to the Company shall, except as otherwise expressly provided herein, be deemed to include the Parent,
the Operating Partnership and any Subsidiaries of the Parent and Operating Partnership.

	(g)
	"Company
Account" has the meaning assigned in Section 5.

	(h)
	"Exchange
Act" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

	(i)
	"Expenses"
has the meaning assigned in Section 9.

	(j)
	"GAAP"
means generally accepted accounting principles in effect in the U.S. on the date such principles are applied consistently.

	(k)
	"Governing
Instruments" means, with respect to any Person, the articles of incorporation and bylaws in the case of a corporation, the certificate of limited partnership (if
applicable) and partnership agreement in the case of a general or limited partnership or the articles of formation and operating agreement in the case of a limited liability company. 

 

	(l)
	"Independent
Directors" means the members of the Board of Directors of Parent who are not officers or employees of Manager or SL Green and who are otherwise "independent" in
accordance with the Parent's Governing Instruments and, if applicable, the rules of the New York Stock Exchange.

	(m)
	"Investment
Company Act" means the Investment Company Act of 1940, as amended.

	(n)
	"Investment
Guidelines" means the parameters and policies relating to Investments as determined by the Board of Directors, as set forth in the initial public offering prospectus of
the Parent and as may be changed from time-to-time.

	(o)
	"Investments"
means the investments of the Company.

	(p)
	"Manager"
has the meaning assigned in the first paragraph.

	(q)
	"Partnership
Agreement" means the agreement of limited partnership of the Operating Partnership.

	(r)
	"Outsource
Agreement" means the Outsource Agreement by and between the Manager and SL Green Operating Partnership.

	(s)
	"Origination
Agreement" means the Origination Agreement between the Parent and SL Green Operating Partnership, dated the date hereof.

	(t)
	"Person"
means any individual, corporation, partnership, joint venture, limited liability company, estate, trust, unincorporated association, any federal, state, county or municipal
government or any bureau, department or agency thereof and any fiduciary acting in such capacity on behalf of any of the foregoing.

	(u)
	"REIT"
means a corporation or trust which qualifies as a real estate investment trust in accordance with Sections 856 through 860 of the Code.

	(v)
	"Special
Limited Partnership Interest" means the interest in the Operating Partnership granted to the Manager pursuant to the terms of the Partnership Agreement.

	(w)
	"Stockholders'
Equity" means the aggregate gross proceeds from the sales of the Operating Partnership's common and preferred equity capital, as calculated under the Partnership
Agreement.

	(x)
	"Subsidiary"
means any subsidiary of the Company, any partnership, the general partner of which is the Company or any subsidiary of the Company and any limited liability company, the
managing member of which is the Company or any subsidiary of the Company.

	2.
	Appointment and Duties of Manager. 
	(a)
	Appointment.    The Company hereby appoints Manager as its exclusive agent to manage the assets of the Company subject to the
further terms and conditions set forth in this Agreement, and Manager hereby agrees to use its commercially reasonable efforts to perform each of the duties set forth herein, provided funds are made
available by the Company for such purposes, as set forth in Section 9 hereof.

	(b)
	Duties.    Manager, in its capacity as manager of the Company's day-to-day operations, at all times
will be subject to the supervision of the Board of Directors and will have only such functions and authority as the Company may delegate to it, including, without limitation, the 

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functions
and authority identified herein and delegated to Manager hereby. Manager will perform (or cause to be performed) the following services and activities for the Company: 

	(i)
	serving
as the Parent's consultant with respect to the periodic review of the investment criteria and parameters for Investments, borrowings and operations for approval by the Board
of Directors;

	(ii)
	investigating,
analyzing and selecting possible investment opportunities;

	(iii)
	engaging
and supervising, on the Company's behalf and at the Company's expense, independent contractors which provide real estate-related services, investment banking services,
mortgage brokerage, securities brokerage, legal services, accounting services, due diligence services and other financial services and such other services as may be required relating to the Company's
Investments;

	(iv)
	negotiating,
executing and closing on the Company's behalf the origination, acquisition, sale, exchange or other disposition of any of the Company's Investments;

	(v)
	arranging,
negotiating, coordinating and managing operations of any joint venture or co-investment interests held by the Company and conducting all matters with any joint
venture or co-investment partners;

	(vi)
	providing
executive and administrative personnel;

	(vii)
	administering
the Company's day-to-day operations and performing and supervising the performance of other administrative functions necessary to the Company's
management, as may be agreed upon by Manager and the Board of Directors, including the collection of revenues and the payment of the Company's debts and obligations, maintenance of appropriate
computer services to perform such administrative functions, keeping the Company's books and records, organizing Board of Directors and committee meetings, and other services related to the Company's
obligations as a publicly traded entity;

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

	(ix)
	advising
the Parent in connection with policy decisions to be made by the Parent's Board of Directors;

	(x)
	evaluating
and recommending to the Company's Board of Directors modifications to the hedging strategies in effect and causing the Company to engage in overall hedging strategies
consistent with the Company's status as a REIT and with the Company's Investment Guidelines;

	(xi)
	advising
the Company regarding the maintenance of the Company's status as a REIT and monitoring compliance with the various REIT qualification tests and other rules set out in the
Code and Treasury Regulations thereunder;

	(xii)
	advising
the Company regarding the maintenance of the Company's exemption from the Investment Company Act and monitoring compliance with the requirements for maintaining an
exemption from the Investment Company Act;

	(xiii)
	assisting
the Company in developing criteria for Investment commitments meeting the Company's objectives, and making available to the Company its knowledge and experience with
respect to real estate, real estate securities and other real estate-related assets; 

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	(xiv)
	representing
and making recommendations to the Company in connection with the purchase and finance and commitment to purchase and finance of whole loans, mezzanine loans and
interests therein, mortgage loans and interests therein (including on a portfolio basis), real estate, real estate securities and other real estate-related assets, and the sale and commitment to sell
such assets;

	(xv)
	monitoring
the operating performance of the Company's Investments and providing periodic reports with respect thereto to the Company's Board of Directors as requested by the Board of
Directors, including comparative information with respect to such operating performance, budgeted or projected operating results and compliance with the Company's Investment Guidelines;

	(xvi)
	investing
or reinvesting any money of the Company (including investing in short-term investments pending investment in long-term asset investments, payment
of fees, costs and expenses, or payments of dividends or distributions to the Company's stockholders and partners), and advising the Parent and the Operating Partnership as to their respective capital
structures and capital raising;

	(xvii)
	causing
the Parent and the Operating Partnership to retain qualified accountants and legal counsel, as applicable, to assist in developing appropriate accounting procedures,
compliance procedures and testing systems with respect to financial reporting obligations and Parent's compliance with the REIT provisions of the Code and to conduct quarterly compliance reviews
thereof;

	(xviii)
	causing
the Parent and the Operating Partnership to qualify to do business in all applicable jurisdictions and to obtain and maintain all appropriate licenses;

	(xix)
	assisting
the Parent and the Operating Partnership in complying with all regulatory requirements applicable to the Parent and the Operating Partnership in respect of its business
activities, including preparing or causing to be prepared all financial statements required under applicable regulations and contractual undertakings and all reports and documents, if any, required
under the Exchange Act, the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder;

	(xx)
	taking
all necessary actions to enable the Parent and the Operating Partnership to make required tax filings and reports, including with respect to the Parent, soliciting
stockholders for required information to the extent provided by the REIT provisions of the Code;

	(xxi)
	handling
and resolving all claims, disputes or controversies (including all litigation, arbitration, settlement or other proceedings or negotiations) in which the Company may be
involved or to which the Company may be subject, arising out of the Company's day-to-day operations, subject to such limitations or parameters as may be imposed from
time-to-time by the Company's Board of Directors;

	(xxii)
	using
commercially reasonable efforts to cause expenses incurred by or on behalf of the Parent and the Operating Partnership to be reasonable or customary and within any budgeted
parameters or expense guidelines set by the Board of Directors from time-to-time;

	(xxiii)
	performing
such other services as may be required from time-to-time for management and other activities relating to the Company's assets as the Board of
Directors shall reasonably request or Manager shall deem appropriate under the particular circumstances; and 

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	(xxiv)
	using
commercially reasonable efforts to cause the Parent and the Operating Partnership to comply with all applicable laws.

	(c)
	Subcontracts.    Manager may enter into agreements with other parties, including its affiliates and/or SL Green, for the
purpose of engaging one or more asset managers for and on behalf, and at the sole cost and expense, of the Company to provide asset management and/or similar services to the Company with respect to
the Investments, pursuant to asset management agreement(s) with terms which are then customary for agreements regarding the management of assets similar in type, quality and value to the assets of the
Company; provided, that (i)any such agreements entered into with affiliates of Manager shall be (A) on terms no more favorable to such affiliate than would be obtained from a third party on an
arm's-length basis, and (B) approved by a majority of the Independent Directors.

	(d)
	Other Service Providers.    Manager may retain for and on behalf of the Company such services of accountants, legal counsel,
appraisers, insurers and brokers, among others, including Manager's affiliates, as Manager deems necessary or advisable in connection with the management and operations of the Company and the
provision of its duties under this Agreement; provided, that any such agreement entered into with an affiliate of Manager to perform any such services shall be engaged (i) on terms no more
favorable to such affiliate than would be obtained from a third party on an arm's-length basis, and (ii) approved by a majority of the Independent Directors. The Company hereby acknowledges and
approves the terms of the Asset Servicing Agreement and the Outsource Agreement. The Company shall pay all expenses, and reimburse Manager for Manager's expenses incurred on its behalf, in connection
with any such services to the extent such expenses are reimbursable by the Company to Manager pursuant to Section 9 hereof.

	(e)
	Reporting Requirements. 
	(i)
	As
frequently as Manager may deem necessary or advisable, or at the direction of the Board of Directors, Manager shall prepare, or cause to be prepared, with respect to any Investment
and at the Company's sole cost and expense, (i) reports and information on the Company's operations and asset performance and (ii) other information reasonably requested by the Company.

	(ii)
	Manager
shall prepare, or cause to be prepared, at the sole cost and expense of the Company, all reports, financial or otherwise, with respect to the Parent and the Operating
Partnership reasonably required by the Board of Directors in order for the Parent and the Operating Partnership to comply with its Governing Instruments or any other materials required to be filed
with any governmental entity or agency, and shall prepare, or cause to be prepared, all materials and data necessary to complete such reports and other materials including, without limitation, an
annual audit of the Company's books of account by a nationally recognized independent accounting firm of good reputation, initially Ernst & Young, LLP.

	(iii)
	Manager
shall prepare regular reports for the Board of Directors to enable the Board of Directors to review the Company's acquisitions, portfolio composition and characteristics,
credit quality, performance and compliance with the Investment Guidelines and policies approved by the Board of Directors.

	(f)
	Use of Manager's Funds.    Manager shall not be required to expend money in excess of that contained in any applicable
Company Account or otherwise made available by the Company to be expended by Manager hereunder.

	(g)
	Reliance by Manager.    In performing its duties under this Section 2, Manager shall be entitled to rely reasonably on
qualified experts and professionals (including, without limitation, 

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accountants,
legal counsel and other professional service providers) hired by Manager at the Company's sole cost and expense. 

	3.
	Dedication; Other Activities. 
	(a)
	Devotion of Time.    Manager will provide a dedicated management team to provide the management services to be provided to
the Parent and the Operating Partnership hereunder, the members of which team shall devote such of their time to the management of the Parent and the Operating Partnership as the Board of Directors
deems necessary and appropriate, commensurate with the level of activity of the Company from time to time. The Parent and the Operating Partnership shall have the benefit of Manager's reasonable
judgment and effort in rendering services and, in furtherance of the foregoing, Manager shall not undertake activities which, in its reasonable judgment, will substantially adversely affect the
performance of its obligations under this Agreement.

	(b)
	Other Activities.    Except to the extent set forth (i) in clause (a) above, (ii) in each officer and
employee's respective employment agreement and (iii) the Origination Agreement, nothing herein shall prevent Manager or any of its affiliates or any of the officers and employees of any of the
foregoing from engaging in other businesses or from rendering services of any kind to any other person or entity, including investment in, or advisory service to others investing in, any type of real
estate or real estate-related investment, including investments which meet the principal investment objectives of the Company.

	(c)
	Officers, Employees, Etc.    Manager's or its affiliates' members, partners, officers, employees and agents may serve as
directors, officers, employees, agents, nominees or signatories for the Company or any Subsidiary, to the extent permitted by their Governing Instruments, as may be amended from time to time, or by
any resolutions duly adopted by the Board of Directors pursuant to the Company's Governing Instruments. When executing documents or otherwise acting in such capacities for the Company or such other
Subsidiary, such Persons shall use their respective titles with respect to the Company or such Subsidiary.

	4.
	Agency.

Manager
shall act as the agent of the Company in making, acquiring, financing and disposing of Investments, disbursing and collecting the Company's funds, paying the debts and fulfilling the
obligations of the Company, supervising the performance of professionals engaged by or on behalf of the Company and handling, prosecuting and settling any claims of or against the Company, the Board
of Directors, holders of the Parent's or the Operating Partnership's securities or the Company's representatives or assets. 

	5.
	Bank Accounts.

At
the direction of the Board of Directors, Manager may establish and maintain as an agent on behalf of the Company one or more bank accounts in the name of the Parent and the Operating Partnership or
any other Subsidiary (any such account, a "Company Account"), collect and deposit funds into any such Company Account and disburse funds from any such Company Account, under such terms and conditions
as the Board of Directors may approve. Manager shall from time-to-time render appropriate accountings of such collections and payments to the Board of Directors and, upon
request, to the auditors of Company. 

	6.
	Records; Confidentiality.
	(a)
	Records. Manager shall maintain appropriate books of account and records relating to services performed under this Agreement, and such
books of account and records shall be accessible for inspection by representatives of the Company at any time during normal business hours.

	(b)
	Confidentiality. Manager shall keep confidential any nonpublic information obtained in connection with the services rendered under this
Agreement and shall not disclose any such 

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information
(or use the same except in furtherance of its duties under this Agreement), except: (i)in accordance with the Origination Agreement, Outsource Agreement and Asset Servicing Agreement;
(ii) with the prior written consent of the Board of Directors; (iii) to legal counsel, accountants and other professional advisors; (iv) to appraisers, financing sources and
others in the ordinary course of the Company's business; (v) to governmental officials having jurisdiction over the Company; (vi) in connection with any governmental or regulatory
filings of the Company or disclosure or presentations to Company investors; (vii) as required by law or legal process to which Manager or any Person to whom disclosure is permitted hereunder is
a party. The foregoing shall not apply to information which has previously become available through the actions of a Person other than Manager not resulting from Manager's violation of this
Section 6(b). The provisions of this Section 6(b) shall survive the expiration or earlier termination of this Agreement. 

	7.
	Obligations of Manager; Restrictions.
	(a)
	Restrictions.    Manager shall refrain from any action that, in its sole judgment made in good faith, (i) is not in
compliance with the Investment Guidelines, (ii) would adversely affect the status of the Parent as a REIT, or (iii) would violate any law, rule or regulation of any governmental body or
agency having jurisdiction over the Company or that would otherwise not be permitted by the Company's Governing Instruments. If Manager is ordered to take any such action by the Board of Directors,
Manager shall promptly notify the Board of Directors of Manager's judgment that such action would adversely affect such status or violate any such law, rule or regulation or Governing Instruments.
Notwithstanding the foregoing, Manager, its directors, officers, stockholders and employees shall not be liable to the Parent, the Operating Partnership or any Subsidiary, the Board of Directors or
the Company's stockholders or partners for any act or omission by Manager, its directors, officers, stockholders or employees taken in good faith or except as provided in Section 11 hereof.

	(b)
	Board of Directors Review.    The Board of Directors will periodically review the Investment Guidelines and the Company's
investment portfolio but will not review each proposed investment, except as set forth below. Investments must be approved as follows, unless otherwise agreed by Manager and the Company: an investment
committee, comprised initially of the Company's Chief Executive Officer and two Independent Directors, must approve capital commitments between $15 million and $50 million; approval by
the Company's full Board of Directors is required for investments in excess of $50 million. Manager will have full discretion to invest on behalf of the Company with respect to investments
under $15 million. The Chief Investment Officer or Manager may approve any investment of less than $3 million. Manager can rely upon the direction of the Secretary of the Board of
Directors to evidence the approval of the Board of Directors. Notwithstanding the foregoing, any Investment entered into with an affiliate of Manager shall be approved by a majority of the Independent
Directors.

	(c)
	Insurance.    Manager shall maintain "errors and omissions" insurance coverage and such other insurance coverage which is
customarily carried by property, asset and investment managers performing functions similar to those of Manager under this Agreement with respect to assets similar to the assets of the Company, in an
amount which is comparable to that customarily maintained by other managers or servicers of similar assets.

	8.
	Compensation. 

Manager
shall receive an annual management fee equal to 1.75% of Stockholders' Equity. The annual management fee shall be calculated and paid in cash monthly in arrears. Manager shall make available
the monthly calculation of the base management fee to the Company within fifteen (15) days following the last day of each calendar month, and the Company shall pay Manager the base annual
management fee within five business days thereafter. 

7

 
	9.
	Expenses.

The
Company shall pay all of its expenses and shall reimburse Manager for its documented expenses incurred on the Company's behalf in accordance with this Agreement (collectively, the "Expenses").
Expenses include all costs and expenses which are expressly designated elsewhere in this Agreement as the Company's expenses, together with the following: 

	(a)
	expenses
incurred in connection with the organization of the Company and any issuance of securities, and transaction costs incident to investment activity and financings;

	(b)
	travel
and out-of pocket expenses incurred in connection with the origination, purchase, financing, refinancing, sale or disposition of an Investment;

	(c)
	costs
of professional fees including, but not limited to, legal, accounting, tax, auditing and other similar services performed for the Company;

	(d)
	compensation
and expenses, including liability insurance, for the Company's directors;

	(e)
	compensation
and expenses of the Company's custodian and transfer agent;

	(f)
	costs
associated with establishing and maintaining bank accounts and credit facilities, other indebtedness or securities offerings;

	(g)
	costs
associated with any computer hardware or software used exclusively for the Company;

	(h)
	costs
and expenses incurred contracting with third parties, including affiliates of Manager, and including expenses under agreements for servicing and outsourcing described under the
Service Agreement, for servicing and special servicing of the Company assets;

	(i)
	all
other costs associated with the Company's business and operations, including, but not limited to, costs of acquiring, owning, protecting, maintaining, developing and disposing of
investments, including appraisal, engineering and environmental studies, reporting, audit and legal fees;

	(j)
	all
insurance costs, including all costs related to insurance for the Company's directors, except for those related to Manager for itself and employees acting on Manager's behalf;

	(k)
	expenses
for offices of the Company and of the Manager;

	(l)
	expenses
connected with interest payments and dividends made or caused to be made by the Company's Board of Directors;

	(m)
	expenses
incurred in connection with communications to holders of securities of the Company and other bookkeeping and clerical work, including without limitation, all costs of
preparing and filing SEC reports, all listing costs, costs of preparing and distributing annual reports and proxy materials; and

	(n)
	all
other expenses actually incurred by Manager which are reasonably necessary for the performance by Manager of its duties and functions in accordance with the terms of this
Agreement. 

Manager
is not entitled to be reimbursed for wages, salaries and benefits of its officers and employees. Manager may retain third parties including accountants, legal counsel, real estate
underwriters, brokers, among others, on the Company's behalf, and be reimbursed for such services. 

	10.
	Expense Reports and Reimbursements.

Manager
shall prepare a statement documenting the Expenses incurred during, and deliver the same to the Company within forty-five days following the end of each fiscal quarter. Expenses 

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incurred
by Manager on behalf of the Company shall be reimbursed by the Company within forty-five days following delivery of the expense statement by Manager. The provisions of this
Section 10 shall survive the expiration or earlier termination of this Agreement. 

	11.
	Limits of Manager Responsibility; Indemnification.

Pursuant
to this Agreement, Manager will not assume any responsibility other than to render the services called for hereunder and will not be responsible for any action of the Company's Board of
Directors in following or declining to follow its advice or recommendations. Manager, its directors and its officers will not be liable to the Parent, the Operating Partnership, any Subsidiary, any of
their directors, officers, stockholders, managers, owners or partners for acts performed in accordance with and pursuant to this Agreement, except by reason of acts constituting bad faith, willful
misconduct, or reckless disregard of Manager's duties under this Agreement. The Parent and the Operating Partnership each agree to indemnify Manager, its directors and its officers, its shareholders,
employees and agents with respect to all expenses, losses, actual damages, liabilities, demands, charges and claims arising from acts of Manager performed in good faith in accordance with and pursuant
to this
Agreement. Manager agrees to indemnify Company and its directors and officers with respect to all expenses, losses, actual damages, liabilities, demands, charges and claims arising from acts of
Manager constituting bad faith, willful misconduct or reckless disregard of its duties under this Agreement, as determined pursuant to a final, non-appealable order of a court of competent
jurisdiction. The provisions of this Section 11 shall survive the expiration or earlier termination of this Agreement. 

	12.
	No Joint Venture.

Nothing
in this Agreement shall be construed to make the Company and Manager partners or joint venturers or impose any liability as such on either of them. 

	13.
	Term; Termination.
	(a)
	Term.    This Agreement shall remain in full force through December 31, 2007, unless terminated by the Company or
Manager as set forth below, and shall be renewed automatically for successive one (1) year periods thereafter, until this Agreement is terminated in accordance with the terms hereof.

	(b)
	Non-Renewal.    Either party may elect not to renew this Agreement at the expiration of the initial term or any
renewal term for any or no reason by notice to the other party at least six (6) months prior to the end of the term.

	(c)
	Termination by the Company.    The Company may terminate this Agreement effective sixty (60) days after notice of
termination from the Parent and the Operating Partnership to Manager in the event that any act of fraud, misappropriation of funds, or embezzlement against the Parent or the Operating Partnership or
other willful and material violation of this Agreement by Manager in its corporate capacity (as distinguished from the acts of any employees of Manager which are taken without the complicity of any of
the executive officers of Manager); provided, that such willful and material violation continue for a period of thirty (30) days after written notice thereof specifying such violation and
requesting that the same be remedied in such thirty (30) day period.

	(d)
	Termination by Manager.    Manager may terminate this Agreement effective upon sixty (60) days prior written notice of
termination to the Company in the event that the Company shall default in the performance or observance of any material term, condition or covenant in this Agreement and such default shall continue
for a period of thirty (30) days after written notice thereof specifying such default and requesting that the same be remedied in such thirty (30) day period. 

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	(e)
	Termination Fees.    In the event the Agreement is not renewed or is terminated under Section 13(b) or 13(d), Company
shall pay Manager on the termination date a termination fee equal to two times the higher of the aggregate annual fees paid under this Agreement to Manager in either of the two calendar years
immediately preceding the effective date of the termination; provided, however, that if immediately following such termination the Company becomes self-managed, the termination fee payable
will be reduced by 50%. The Company's obligation to pay a termination fee shall survive the termination of this Agreement.

	(f)
	Survival.    If this Agreement is terminated pursuant to this Section 13, such termination shall be without any
further liability or obligation of either party to the other, except as otherwise expressly provided herein.

	14.
	Action Upon Termination or Expiration of Origination Period. 

From
and after the effective date of termination of this Agreement pursuant to Section 13, Manager shall not be entitled to compensation for further services under this Agreement but shall be
paid all compensation accruing to the date of termination, reimbursement for all Expenses and a termination fee, if applicable. Upon such termination or expiration, Manager shall reasonably promptly: 

	(a)
	after
deducting any accrued compensation and reimbursement for Expenses to which it is then entitled, pay over to the Company all money collected and held for the account of the
Company pursuant to this Agreement;

	(b)
	deliver
to the Company's Board of Directors a full accounting, including a statement showing all payments collected and all money held by it, covering the period following the date of
the last accounting furnished to the Board of Directors with respect to the Company and through the termination date; and

	(c)
	deliver
to the Board of Directors all property and documents of the Company provided to or obtained by Manager pursuant to or in connection with this Agreement, including all copies
and extracts thereof in whatever form, then in Manager's possession or under its control.

	15.
	Assignment. 

Manager
may not assign its duties under this Agreement. 

	16.
	Release of Money or other Property Upon Written Request.

Manager
agrees that any money or other property of the Company held by Manager under this Agreement shall be held by Manager as custodian for the Company, and Manager's records shall be clearly and
appropriately marked to reflect the ownership of such money or other property by the Company. Upon the receipt by Manager of a written request signed by a duly authorized officer of the Company
requesting Manager to release to the Company any money or other property then held by Manager for the account of the Company under this Agreement, Manager shall release such money or other property to
the Company within a reasonable period of time, but in no event later than sixty (60) days following such request. Manager shall not be liable to the Parent, the Operating Partnership, the
Independent Directors or the Parent's or the Operating Partnership's stockholders or partners for any acts or omissions by the Company in connection with the money or other property released to the
Company in accordance with the terms hereof. The Company shall indemnify Manager and its members, managers, officers and employees against any and all expenses, losses, damages, liabilities, demands,
charges and claims of any nature whatsoever which arise in connection with Manager's release of such money or other property to the Company in accordance with the terms of this Section 16.
Indemnification pursuant to this Section 16 shall be in addition to any right of Manager to indemnification under Section 11. 

	17.
	Notices. 

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Unless
expressly provided otherwise in this Agreement, all notices, requests, demands and other communications required or permitted under this Agreement shall be in writing and shall be deemed to
have been duly given, made and received when delivered against receipt or upon actual receipt of (a) personal delivery, (b) delivery by a reputable overnight courier, (c) delivery
by facsimile transmission against answerback, or (d) delivery by registered or certified mail, postage prepaid, return receipt requested, addressed as set forth below: 

If
to the Parent

or the Operating Partnership: 

Gramercy
Capital Corp.

420 Lexington Avenue

New York, New York 10170

Attention: Office of General Counsel

Facsimile: (212) 216-1785 

If
to Manager: 

GKK
Manager LLC

c/o SL Green Realty Corp.

420 Lexington Avenue

New York, New York 10170

Attention: General Counsel

Facsimile: (212) 216-1785 

Any
party may change the address to which communications or copies are to be sent by giving notice of such change of address in conformity with the provisions of this Section 17 for the giving
of notice. 

	18.
	Binding Nature of Agreement; Successors and Assigns. 

This
Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors and permitted assigns as provided in this
Agreement. This Agreement may not be assigned; provided, however, that Manager may assign the Agreement to an affiliate. 

	19.
	Entire Agreement; Amendments. 

This
Agreement contains the entire agreement and understanding among the parties hereto with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements,
understandings, inducements and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter of this Agreement. The express terms of this Agreement
control and supersede any course of performance and/or usage of the trade inconsistent with any of the terms of this Agreement. This Agreement may not be modified or amended other than by an agreement
in writing signed by the parties hereto. 

	20.
	Governing Law. 

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

	21.
	Indulgences, Not Waivers. 

Neither
the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power
or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power 

11

 

or
privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver. 

	22.
	Titles Not to Affect Interpretation. 

The
titles of sections, paragraphs and subparagraphs contained in this Agreement are for convenience only, and they neither form a part of this Agreement nor are they to be used in the
construction or interpretation of this Agreement. 

	23.
	Execution in Counterparts. 

This
Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original as against any party whose signature appears thereon, and all of which shall together
constitute one and the same instrument. This Agreement shall become binding when one or more counterparts of this Agreement, individually or taken together, shall bear the signatures of all of the
parties reflected hereon as the signatories. 

	24.
	Provisions Separable. 

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

	25.
	Principles of Construction. 

Words
used herein regardless of the number and gender specifically used, shall be deemed and construed to include any other number, singular or plural, and any other gender, masculine, feminine or
neuter, as the context requires. All references to recitals, sections, paragraphs and schedules are to the recitals, sections, paragraphs and schedules in or to this Agreement unless otherwise
specified. 

12

 

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

	 	 	GKK MANAGER LLC

a Delaware limited liability company	 
	

 	
 	

By:	

    
 Name:

Title:	

 
	

 	
 	

 	

 	

 
	

 	
 	

GRAMERCY CAPITAL CORP.

a Maryland corporation	

 
	

 	
 	

By:	

    
 Name:

Title:	

 
	

 	
 	

 	

 	

 
	

 	
 	

GRAMERCY CAPITAL OP LP

a Maryland limited partnership	

 
	

 	
 	

By:	

    
 Name:

Title:	

 
	 	 	 	 	 

13

QuickLinks

Exhibit 10.1

MANAGEMENT AGREEMENT

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Exhibit 10.2    
    

ORIGINATION AGREEMENT  

        THIS ORIGINATION AGREEMENT (this "Agreement"), dated as of [    ], 2004, is made by and between Gramercy Capital Corp., a
Maryland corporation (the "Company"), and SL Green Operating Partnership, L.P., a Maryland limited partnership ("SL Green OP" and, with its parent SL Green Realty Corp. and subsidiaries and other
entities controlled by either of them, "SL Green"). 

RECITALS  

        WHEREAS, the Company is engaging GKK Manager, LLC (the "Manager"), a subsidiary of SL Green, to provide management services to Gramercy Capital Corp. (the
"Parent") and Gramercy Capital OP LP (the "Operating Partnership" and collectively with the Parent, the "Company") pursuant to that certain Management Agreement dated as of the date hereof (the
"Management Agreement") by and among the Company and the Manager; and 

        WHEREAS,
the Company and SL Green wish to address certain elements of their relationship, including rights to acquire fixed income investments and SL Green's ownership in the Company. 

AGREEMENT  

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

        1.    Limits on Origination by SL Green.    

        (a)   (i) SL
Green will not originate, acquire or participate in Fixed Income Investments in the United States, except as set forth herein. "Fixed Income Investments,"
means debt obligations or interests in
debt obligations bearing a fixed-rate of return and collateralized by real property or interests in real property; and 

         (ii)  SL
Green will not acquire, originate or participate in Preferred Equity Investments which bear a fixed rate of return in the United States, unless the Company has
determined not to pursue a particular Preferred Equity Investment opportunity. "Preferred Equity Investments" are investments in preferred stock, preferred shares, preferred interests in partnerships
or limited liability companies or other securities which are, by their terms, given a preference in returning capital in liquidation, upon bankruptcy or otherwise. 

        (b)   Notwithstanding
paragraph (a), SL Green may: 

          (i)  retain
any Fixed Income Investments and/or Preferred Equity Investments it owns on the date hereof; 

         (ii)  originate
Fixed Income Investments or acquire interests in Fixed Income Investments and/or Preferred Equity Investments in connection with the sale of any real estate
or real estate-related assets or Fixed Income Investments and/or Preferred Equity Investments SL Green currently owns or owns at any future time; 

        (iii)  originate
or acquire Fixed Income Investments and/or Preferred Equity Investments that provide a rate of return tied to the cash flow, appreciation or both of the
underlying real property or interests in real property; 

        (iv)  modify
or refinance any portion of the investments in item (i), (ii) or (iii) above; and 

         (v)  originate,
acquire or participate in any investment which is considered Distressed Debt as of the date on which such investment is acquired. "Distressed Debt" is a Fixed
Income Investment where (A) there is a payment default, (B) there is an acceleration, bankruptcy or foreclosure, (C) a default is highly likely because the
loan-to-value ratio is over 100% or (D) the debt service on such debt exceeds the available cash flow from the underlying property on both a current and projected basis. 

        2.    Limits on Company Origination. The Company will not:    

          (i)  acquire
real property in metropolitan New York and Washington, D.C. (except by foreclosure or similar conveyance) resulting from a Fixed Income Investment; 

         (ii)  originate
or acquire investments described in Section 1(b)(iii) above or any investment which is considered Distressed Debt as of the date on which such
investment is acquired, in each case located in metropolitan New York or Washington, D.C.; or 

        (iii)  originate
or acquire participations in any investments described in Sections 1(b) (ii) or (iv) above. 

        3.    Purchase Rights/Rights of First Offer.    

        (a)    Purchase Rights—Properties.    

          (i)  When
the Company acquires a direct or indirect ownership interest in real property in metropolitan New York or Washington, D.C. by foreclosure or similar conveyance or
transfer in lieu thereof (any such interest being an "Acquired Property"), prior to the Company selling such Acquired Property SL Green may purchase the Acquired Property at a price equal to the
Company's unpaid principal balance of the Fixed Income Investment on the date the Company foreclosed or acquired the Acquired Property, plus interest at the last stated contract
(non-default) rate (and without default interest, late charges, prepayment penalties (however denominated), extension fees, exit fees, "kicker" interest or other premiums of any kind)
through the date of SL Green's purchase ("Par Value"). 

         (ii)  If
the Company seeks to sell an Acquired Property within one year following the acquisition of such Acquired Property and receives a bona fide third party offer to
acquire the Acquired Property for cash that the Company desires to accept, SL Green will have a first right to purchase the Acquired Property at the lower of the Par Value or the third party's offer
price prior to the Company accepting such offer. The Company will give prompt written notice to SL Green of its election to sell an Acquired Property, and of receipt of a bona fide third party offer
(together with a copy of any written third party offer). 

        (iii)  If
an Acquired Property is not sold within one year of the date of its acquisition by the Company, SL Green has the right to purchase the Acquired Property at its
appraised value. The appraised value will be determined as follows: the Company will select an appraiser and SL Green will select an appraiser, who will each appraise the Acquired Property. These two
appraisers jointly will select a third appraiser, who will then choose one of the two appraisals as the final appraised value. 

        (iv)  If
SL Green elects to exercise a purchase right set forth in (i)—(iii) above, SL Green shall send written notice of such election to the Company,
setting forth the calculation of the proposed purchase price and the desired closing date, which shall be between 15 and 45 days after such notice. If an appraiser is required, such notice
shall also set forth the appraiser selected by SL Green. Unless the Company objects to the purchase price calculation, the sale to SL Green of the Acquired Property shall be consummated on the
proposed closing date or as soon thereafter as feasible. All sales shall be on an as-is, where-is basis with no representations or warranties made by the Company, except that
the Company shall represent and warrant to the effect that (i) it has requisite power and authority to transfer the Acquired Property to SL Green and (ii) the interest conveyed by the
Company in the Acquired Property is free and clear of liens (other than liens in place at the time the Company acquired such Acquired Property). 

        In
the case of a sale under (iii), the Company will promptly appoint an appraiser. The two selected appraisers shall complete their appraisals within 20 days and submit their
appraisals to the third appraiser selected jointly by them. The third appraiser shall select one of the appraisals within ten (10) days thereafter, and the appraised value shall be the price at
which SL Green shall have the right 

to
purchase the Acquired Property. All appraisers shall have a minimum of ten (10) years' experience in appraising property similar to, and in the area of, the Acquired Property, and shall be
MAI certified. 

        (b)    Right of First Offer—Distressed Debt.    If at any time the Company plans to sell any interest it
owns in Distressed Debt (the "Offered Asset"), the Company shall first give SL Green written notice of the terms and conditions, including the price and any other material terms and conditions on
which the Company is willing to sell the Offered Asset. SL Green shall have the right, exercisable by written notice to the Company within ten (10) Business Days after the date the notice was
delivered to the Company, to agree to purchase the Offered Asset upon the terms and conditions contained in the Notice. If SL Green exercises such right, then the Company shall sell the Offered Asset
to SL Green on such terms and conditions, and subject to customary representations and warranties. In the event that SL Green does not exercise its right as aforesaid, the Company shall have the right
to sell the Offered Asset to any other person within six (6) months thereafter at not less than 99% of the offered price and otherwise on substantially the same terms and conditions as were
offered to SL Green. If the Offered Asset is not sold in such time frame or otherwise as aforesaid, then any plan by the Company to sell such Offered Asset shall again be subject to this
Section 3(b). In the event that SL Green shall have exercised its right to purchase the Offered Asset and SL Green defaults in the purchase of the Offered Asset on the agreed terms, SL Green
shall be deemed to have waived its rights under this Section with respect to the Offered Asset, and the Company shall thereafter have the right to sell the Offered Asset to any other person without
restrictions. 

        4.    Reimbursement of Formation Expenses.    The Company shall pay SL Green $2,000,000 in cash on the date of closing
of the Company's initial public offering ("IPO"), to reimburse SL Green for the time and expense of assisting in forming, structuring and executing the Company's IPO. 

        5.    Stock Purchase by SL Green.    SL Green agrees to purchase, and the Company agrees to sell, such number of
shares of the Company's common stock, $.001 par value (the "Shares") in the Company's IPO so that SL Green purchases 25% of the shares sold in the IPO, including any shares sold pursuant to the
underwriters' over-allotment option. The purchases and sales of Shares under this Section 5 shall close simultaneously with the sales of Shares to the underwriters in the IPO. The
purchase price per Share shall be in cash and at the same price as the price to the public in the IPO. The Company shall be obligated to sell the Shares to SL Green, and SL Green shall be obligated to
purchase such Shares, if and to the extent Shares are sold in the IPO. In connection with the sale of Shares, the Company hereby makes to SL Green the representations and warranties contained in the
Underwriting Agreement dated the date hereof among the Company and the underwriters. 

        6.    SL Green's Right to Purchase Additional Shares/Units.    In the event the Company shall desire to sell any
Shares or cause common units of limited partnership interest in the Partnership to be issued after the date hereof, SL Green shall have the right (but not the obligation) to purchase up to 25% of any
such Shares or units. The Company shall give SL Green at least five days' written notice of any proposed sale, and SL Green shall confirm in writing its intention to purchase, and the number of Shares
or units SL Green will purchase, not more than three days after such notice is received. If SL Green shall fail to confirm its intent to purchase as required in the previous sentence, its right to
purchase Shares or units in that sale or issuance, as applicable (but not any future sale or issuance) shall be waived. Any purchase by SL Green under this Section 6 shall be in cash at the
same price per Share or unit, and with such representations and other terms and conditions as is offered to other purchasers, and SL Green's purchase shall close simultaneously with sales to other
purchasers. 

        7.    REIT Status.    The Parent shall file an election to be a real estate investment trust (a "REIT") under
Section 856 of the Internal Revenue Code of 1986, as amended (the "Code") with its federal income tax return for the taxable year ending December 31, 2004 and shall use its best efforts
to operate as a REIT during such taxable year and during all subsequent taxable years. 

        8.    Protective TRS Election.    The Parent shall make an annual protective election jointly with SL Green Realty
Corp. ("SLG REIT") for the Parent to be a "taxable REIT subsidiary," as defined in Section 856(l)(1) of the Code, of SLG REIT by executing an Internal Revenue Service Form 8875 (or 

any
successor form), which election shall state that it is to be effective only if the Parent does not qualify as a REIT for any period covered by such election. The Parent has delivered such executed
form to SL Green with respect to 2004 prior to June 15, 2004 and shall deliver such executed form to SLG REIT with respect to subsequent years no later than January 21 of each such year
for execution and filing by SLG REIT. 

        9.    Legal Opinion.    Not later than January 21 of each year, beginning in 2005, the Parent, at its cost,
shall cause its tax counsel, which shall be Clifford Chance US LLP or such other law firm of national reputation as is reasonably acceptable to SLG REIT, to issue an opinion to SLG REIT to the effect
that, for the period commencing January 1 and ending on December 31 in the preceding year, the Parent has qualified as a REIT and the Parent's method of operating will enable the Parent
to continue to qualify as a REIT. Such opinion shall be in form and substance reasonably satisfactory to SL Green, may rely on customary assumptions and representations from the Parent as to its
organization, ownership and method of operating, and shall provide that counsel to SLG REIT may rely on such opinion for purposes of such counsel's opinion as to the status of SLG REIT as a REIT. The
Parent, at its cost, also shall cause such tax counsel, from time to time, to issue such an opinion to SLG REIT within ten (10) business days of its receipt of a request therefor from SLG REIT. 

        10.    Term.    This Agreement shall remain in full force and effect throughout the term of the Management Agreement
as extended in accordance therewith, and terminate simultaneously with the expiration or earlier termination of the Management Agreement; provided that this Agreement may be terminated on
10 days' notice by SL Green to the Company in the event that SL Green shall at any time own less than 50% of the equity ownership interest in the Manager; provided, further, that the terms and
conditions of Sections 7, 8, and 9 hereof shall survive the termination of this Agreement and the Management Agreement for as long as SL Green continues to own at least 5% of the common stock of the
Parent. 

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

        (a)   If
to the Company, to: 

Gramercy
Capital Corp.

420 Lexington Avenue

New York, New York 10170

Attention: Office of General Counsel

Facsimile: 

        (b)   If
to SL Green, to: 

SL
Green Operating Partnership, L.P.

420 Lexington Avenue

New York, New York 10170

Attention: General Counsel

Facsimile: 

        12.    Entire Agreement.    Except for the applicable provisions of the Management Agreement, this Agreement shall
constitute the entire agreement among the parties relating to the subject matter hereof and shall supersede all other prior or contemporary agreements, understandings, negotiations and discussions
whether oral or written. 

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

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

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

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

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

	 	 	GRAMERCY CAPITAL CORP.
	

 	
 	

By:	

 Name:

Title:
	

 	
 	
SL GREEN OPERATING PARTNERSHIP, L.P.
	

 	
 	

By:	

 Name:

Title:

QuickLinks

Exhibit 10.2

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