Document:

Exhibit 10.1

 

GRAMERCY
CAPITAL CORP.

420
Lexington Avenue

New
York, New York 10170

 

April 16, 2008

 

Hugh
F. Hall

69
Calhoun Drive

Greenwich,
CT  06831

 

Dear Hugh:

 

GKK
Manager LLC (“GKK Manager”) and you are parties to an Employment and
Noncompetition Agreement entered into between you and GKK Manager on July     ,
2004 (the “Employment and Noncompetition Agreement,” attached at Exhibit A)
which also provides for certain obligations between you and Gramercy Capital
Corp. (“Gramercy”).  As you know,
the Original Term (as defined in the Employment and Noncompetition Agreement;
all terms used and not defined herein shall be as defined in the Employment and
Noncompetition Agreement) was to have expired on August 2, 2008 (the “Initial
Expiration Date”).  This letter shall
reflect the mutual agreement between Gramercy and you to terminate all
positions you may have with Gramercy effective on April 16, 2008.  This letter also sets forth the agreement
(the “Agreement”) between you and Gramercy for ending your relationship,
including releasing Gramercy and related persons or entities from any claims
and permitting you to receive a continuation of certain benefits.  Specifically, you are agreeing to resign from
your positions now, and Gramercy is agreeing to continue to provide for the
vesting of equity that you would otherwise have received had you continued
working through August 2, 2008.

 

With
those understandings, you and Gramercy agree as follows:

 

1.                                       Resignation from Employment

 

You
are resigning from any and all positions that you hold with Gramercy, as an
officer, director or otherwise, effective on April 16, 2008 (the “Resignation
Date”).

 

2.                                       Equity Awards

 

All
equity awards that you received from Gramercy (“Gramercy Equity Awards”),
including without limitation, all options to purchase shares of Gramercy common
stock, restricted shares of Gramercy common stock and LTIP Units in GKK Capital
LP, that are to vest on or before the Initial Expiration Date will vest:  (a) with respect to all Gramercy Equity
Awards other than options to purchase shares of Gramercy common stock, on the
date for which they are currently provided so long as you have not breached
your agreements hereunder through such date and (b) with respect to
options to purchase shares of Gramercy common stock, on the Effective Date, and
all other Equity Awards shall lapse on the Resignation Date and will not be
exercisable.

 

You
acknowledge that the chart attached as Exhibit B contains a complete
listing of all outstanding Gramercy Equity Awards that are vested as of the
date hereof and that will vest on 

 

 

 

 

or
prior to the Initial Expiration Date in accordance with this Agreement.  You agree that all Gramercy Equity Awards
that are not listed as vested on Exhibit B are forfeited as of the
Resignation Date.

 

Except
for the provisions relating to the vesting and forfeiture of the Equity Awards,
this Paragraph 2 is not intended to modify in any respect the terms of your
Equity Awards.

 

3.                                       Tax Treatment

 

Gramercy
shall withhold from any compensation or benefits payable under this agreement
all Federal, State, City, or other taxes as shall be required or determined in
good faith to be necessary pursuant to any law or governmental regulations or
rulings.  Nothing in this Agreement shall
be construed to require Gramercy to make any payments to compensate you for any
adverse tax effect associated with any payments or benefits or for any
deduction or withholding from any payment or benefit.

 

4.                                       Confidentiality; Prohibited Activities

 

You acknowledge that the
Employment and Noncompetition Agreement contains certain obligations in Section 8
(Confidentiality; Prohibited Activities) that survive the termination of your
service as an officer of Gramercy, including without limitation Section 8(a) (Confidentiality),
8(b)(i) (Noncompetition), 8(b)(ii)(Nonsolicitation), 8(d) (Return of
Employer Property); 8(e) (No Disparagement), 8(g) (Transition), and 8(h) (Cooperation
with Respect to Litigation) continue in full force and effect and remain
binding obligations on your part to be performed; provided, however,
that: (a) your obligations not to compete with Gramercy, contained in Section 8(b)(i) of
the Employment and Noncompetition Agreement, are waived for the period
beginning 12 months after the Resignation Date (the “Outside Date”)
provided that and so long as you have not breached your agreements hereunder
during such period and (i) for the period from the Resignation Date
through the Initial Expiration Date, you do not solicit or respond to any
inquires from any parties who are borrowers, counterparties, brokers or other
persons participating in the arrangement of any loans or investments held or
proposed to be held by Gramercy as of the Resignation Date, (ii) for the
12-month period following the Resignation Date, you do not solicit or respond
to inquires from any parties for the purpose of refinancing, making or
participating in any loans or investments held or proposed to be held by
Gramercy as of the Resignation Date, including not soliciting or responding to
inquiries concerning, or acquiring or participating in the acquisition
(directly or indirectly) of any securities issued by Gramercy or its
affiliates, including preferred stock, trust preferred securities or bonds
issued in connection with collateralized debt obligations or other
securitization vehicles, and (iii) you do not solicit or respond to
inquires from any parties for the purpose of refinancing any loans or
investments held or proposed to be held by Gramercy as of the Resignation Date;
and (b) you agree that the term of your obligations set forth in Section 8(b)(ii) will
be extended through the date that is 30
months after the Resignation Date. 
Notwithstanding the foregoing, this Agreement shall not be deemed to
prohibit you from soliciting or responding to inquiries from 

 

 

2

 

 

banks,
insurance companies, investment banks, loan brokers or financial advisors
regarding potential financing or investments that would not violate (i),  (ii) or (iii) above, unless such
parties represent counterparties to any investments held by Gramercy. You acknowledge all of these continuing
obligations and agree to abide by them as provided in the Employment and
Noncompetition Agreement as modified herein.

 

5.                                       Mutual Release of Claims

 

(a)           By You

 

In
consideration for, among other terms, the payments and benefits described in
Paragraph 2, some of which you acknowledge you would otherwise not be
entitled to, you voluntarily release and forever discharge Gramercy, its
affiliated and related entities, its predecessors, successors and assigns, and
its employee benefit plans and fiduciaries of such plans, and the current and
former officers, directors, shareholders, employees, attorneys, accountants and
agents of the foregoing in their official and personal capacities (collectively
referred to as the “Releasees”) generally from all claims, demands,
debts, damages and liabilities of every name and nature, known or unknown (“Claims”)
that, as of the date when you sign this Agreement, you have, ever had, now
claim to have or ever claimed to have had against any or all of the
Releasees.  This release includes,
without limitation, all Claims:

 

	
  ·

  	
  relating to your
  service as an officer of Gramercy;

  
	
  ·

  	
  of wrongful discharge;

  
	
  ·

  	
  of breach of contract,
  including but not limited to the Employment and Noncompetition Agreement;

  
	
  ·

  	
  of retaliation or
  discrimination under federal, state or local law (including, without
  limitation, Claims of age discrimination or retaliation under the Age
  Discrimination in Employment Act, Claims of disability discrimination or
  retaliation under the Americans with Disabilities Act, and Claims of
  discrimination or retaliation under Title VII of the Civil
  Rights Act of 1964);

  
	
  ·

  	
  under any other federal
  or state statute;

  
	
  ·

  	
  of defamation or other
  torts;

  
	
  ·

  	
  of violation of public
  policy;

  
	
  ·

  	
  for wages, bonuses,
  incentive compensation, stock, stock options, vacation pay or any other
  compensation or benefits; and

  
	
  ·

  	
  for damages or other
  remedies of any sort, including, without limitation, compensatory damages,
  punitive damages, injunctive relief and attorney’s fees;

  

 

provided, however, that this release shall not
affect (i) your rights under this Agreement, (ii) your vested rights
in any 401(k) plans in which you participated during your employment, (iii) your
continuing rights to indemnification, if any, under the terms of Paragraph 4 of
the Employment and Noncompetition Agreement, or (iii) your right to seek
damages of any kind for any act of 

 

 

3

 

 

fraud, misappropriation
of funds, embezzlement or any other action with regard to Gramercy by any other
officer of Gramercy that constitutes a criminal act under any federal or state
statute.

 

You
agree that you shall not seek or accept damages of any nature, other equitable
or legal remedies for your own benefit, attorney’s fees, or costs from any of
the Releasees with respect to any Claim released by this Agreement.  As a material inducement to Gramercy to enter
into this Agreement, you represent that you have not assigned to any third
party and you have not filed with any agency or court any Claim released by
this Agreement.

 

(b)                                 By Gramercy

 

In consideration for,
among other terms, your release of Claims pursuant to Paragraph 5(a),
Gramercy, on behalf of itself and the Releasees, voluntarily release and
forever discharge you generally from all Claims that, as of the date when
Gramercy signs this Agreement, Gramercy has, ever had, now claims to have or
ever claimed to have had against you, including, without limitation, all Claims
relating to your service as an officer of Gramercy, except that this release
shall not apply to any act of fraud, misappropriation of funds, embezzlement or
any other action with regard to Gramercy that constitutes a criminal act under
any federal or state statute committed or perpetrated by you during the course
of your service as an officer of Gramercy.

 

6.                                       Communications Regarding Your Separation

 

Gramercy
will issue a press release announcing your resignation as part of a
reorganization of Gramercy’s senior executive team.  Each of the parties to this Agreement agree
that it will not make any written or oral statements regarding the termination
of your employment or other business relationship with Gramercy that are
inconsistent with the terms of the such press release.   The obligations set forth in this Paragraph
6 shall not in any way affect the obligations as otherwise set forth in this
Agreement or the Employment and Noncompetition Agreement.

 

7.                                       Suspension or Termination of Payments

 

In the
event that you fail to comply with any of your obligations under this
Agreement, in addition to any other legal or equitable remedies it may have for
such breach Gramercy shall have the right to terminate or suspend its payments
to you under this Agreement.  The
termination or suspension of such payments in the event of such breach by you
will not affect your continuing obligations under this Agreement.  Notwithstanding the foregoing, this provision
shall not apply to the extent that your breach of this Agreement consists of
initiating a legal action in which you contend that the release set forth in
Paragraph 5(a) is invalid, in whole or in part, due to the provisions of
29 U.S.C. § 626(f).

 

 

4

 

 

8.                                       Legal Representation

 

This
Agreement is a legally binding document and your signature will commit you to
its terms.  You acknowledge that you have
been advised to discuss all aspects of this Agreement with your attorney, that
you have carefully read and fully understand all of the provisions of this
Agreement and that you are voluntarily entering into this Agreement.

 

9.                                       Absence of Reliance

 

In
signing this Agreement, you are not relying upon any promises or
representations made by anyone at or on behalf of Gramercy.

 

10.                                 Enforceability

 

If any
portion or provision of this Agreement (including, without limitation, any
portion or provision of any paragraph of this Agreement) shall to any extent be
declared illegal or unenforceable by a court of competent jurisdiction, then
the remainder of this Agreement, or the application of such portion or
provision in circumstances other than those as to which it is so declared
illegal or unenforceable, shall not be affected thereby, and each portion and
provision of this Agreement shall be valid and enforceable to the fullest
extent permitted by law.

 

11.                                 Waiver

 

No
waiver of any provision of this Agreement shall be effective unless made in
writing and signed by the waiving party. 
The failure of any party to require the performance of any term or
obligation of this Agreement, or the waiver by any party of any breach of this
Agreement, shall not prevent any subsequent enforcement of such term or
obligation or be deemed a waiver of any subsequent breach.

 

12.                                 Enforcement

 

(a)           Jurisdiction.  You and Gramercy hereby agree that the
Supreme Court of the State of New York and the United States District Court for
the Southern District of New York shall have the exclusive jurisdiction to
consider any matters related to this Agreement, including without limitation
any claim for violation of this Agreement. 
With respect to any such court action, you (i) submit to the
jurisdiction of such courts, (ii) consent to service of process, and (iii) waive
any other requirement (whether imposed by statute, rule of court or
otherwise) with respect to personal jurisdiction or venue.

 

(b)           Relief.  You agree that it would be difficult to
measure any harm caused to Gramercy that might result from any breach by you of
your promises set forth in Paragraphs 4 and 5(a), and that in any event money
damages would be an inadequate remedy for any such breach.  Accordingly, you agree that if you breach, or
propose to breach, any portion of your obligations under 

 

 

5

 

 

Paragraphs
4 and/or 5(a), Gramercy shall be entitled, in addition to all other remedies it
may have, to an injunction or other appropriate equitable relief to restrain
any such breach, without showing or proving any actual damage to Gramercy and
without the necessity of posting a bond. 
In the event that litigation is commenced by either party to enforce the
terms of this Agreement, the prevailing party shall be entitled to have its
reasonable attorneys’ fees and costs reimbursed by the other party.  In addition, in the event that you breach any
portion of Paragraph 4, you agree that the restrictions and obligations of
Paragraph 4 shall remain in effect for the period of such breach notwithstanding
the period provided for by those restrictions and obligations and you further
agree that the same restrictions shall apply for an equal period of time
commencing effective upon the cessation of any such breach.

 

13.                                 Governing Law; Interpretation

 

This
Agreement shall be interpreted and enforced under the laws of the State of New
York, without regard to conflict of law principles.  In the event of any dispute, this Agreement
is intended by the parties to be construed as a whole, to be interpreted in
accordance with its fair meaning, and not to be construed strictly for or
against either you or Gramercy or the “drafter” of all or any portion of this
Agreement.

 

14.                                 Entire Agreement

 

This
Agreement constitutes the entire agreement between you and Gramercy.  This Agreement supersedes any previous
agreements or understandings between you and Gramercy, including but not
limited to the Employment and Noncompetition Agreement attached at Exhibit A,
except for those obligations contained in Section 4 of the Employment and
Noncompetition Agreement as referenced in Paragraph 5(a), above, and those
obligations contained in Section 8 of the Employment and Noncompetition
Agreement as referenced and modified in Paragraph 4, above, which remain in
full force and effect.

 

15.                                 Time for Consideration; Effective Date

 

You
have the opportunity to consider this Agreement for twenty-one (21) days before
signing it.  To accept this Agreement,
you must return a signed original of this Agreement so that it is received by
the undersigned at or before the expiration of this twenty-one (21) day
period.  If you sign this Agreement
within less than twenty-one (21) days of the date of its delivery to you, you
acknowledge by signing this Agreement that such decision was entirely voluntary
and that you had the opportunity to consider this Agreement for the entire
twenty-one (21) day period.  For the
period of seven (7) days from the date when this Agreement becomes fully
executed, you have the right to revoke this Agreement by written notice to the
undersigned.  For such a revocation to be
effective, it must be delivered so that it is received by the undersigned at or
before the expiration of the seven (7) day revocation period.  This Agreement shall not become 

 

 

6

 

 

effective
or enforceable during the revocation period. 
This Agreement shall become effective on the first business day
following the expiration of the revocation period (the “Effective Date”).

 

16.                                 Counterparts

 

This
Agreement may be executed in any number of counterparts, each of which when so
executed and delivered shall be taken to be an original, but all of which
together shall constitute one and the same document.

 

Please
indicate your agreement to the terms of this Agreement by signing and returning
to me the original of this letter within the time period set forth above.

 

Very truly yours,

 

	
  GRAMERCY
  CAPITAL CORP.

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Marc Holliday

  	
   

  
	
   

  	
  Marc
  Holliday

  	
   

  
	
   

  	
  Chief
  Executive Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  April 16, 2008

  	
   

  
	
   

  	
  Date

  	
   

  

 

 

Enclosures:

	
   

  	
  Exhibit A:
  Employment and Noncompetition Agreement

  
	
   

  	
  Exhibit B: Summary
  of Vested Equity Awards

  

 

You
are advised to consult with an attorney before signing this Agreement.  The foregoing is agreed to and accepted
by:

 

 

 

	
  /s/ Hugh F. Hall

  	
   

  	
  April 16, 2008

  
	
  Hugh
  F. Hall

  	
   

  	
  Date

  

 

 

7

 

 

Exhibit B:
Summary of Vested Equity Awards

 

The following sets forth
a complete listing of all of your outstanding Gramercy Equity Awards that are
vested as of April 16, 2008 and would vest if you remained employed
through August 2, 2008:

 

Gramercy Stock Options

 

	
  Grant Date

  	
   

  	
  Number of Shares

  	
   

  	
  Exercise Price

  	
   

  	
  Shares Vested as 

  of April 16, 2008

  	
   

  	
  Shares to be Vested as of 

  August 2, 2008

  	
   

  
	
  12/31/2007

  	
   

  	
  15,000

  	
   

  	
  24.31

  	
   

  	
  5,000

  	
   

  	
  5,000

  	
   

  
	
  1/2/2007

  	
   

  	
  25,000

  	
   

  	
  30.89

  	
   

  	
  8,333

  	
   

  	
  8,333

  	
   

  
	
  4/20/2005

  	
   

  	
  16,667

  	
   

  	
  19.85

  	
   

  	
  8,333

  	
   

  	
  16,667

  	
   

  
	
  8/2/2004

  	
   

  	
  62,500

  	
   

  	
  15.00

  	
   

  	
  31,250

  	
   

  	
  62,500

  	
   

  

 

Gramercy Restricted Stock

 

	
  Grant Date

  	
   

  	
  Number of Shares

  	
   

  	
  Shares Vested as of 

  April 16, 2008

  	
   

  	
  Shares to be Vested as of 

  August 2, 2008

  	
   

  
	
  12/31/2007

  	
   

  	
  10,000

  	
   

  	
  3,333

  	
   

  	
  3,333

  	
   

  
	
  1/2/2007

  	
   

  	
  30,000

  	
   

  	
  17,481

  	
   

  	
  17,481

  	
   

  
	
  8/2/2004

  	
   

  	
  25,000

  	
   

  	
  18,750

  	
   

  	
  25,000

  	
   

  

 

GKK Capital LP LTIP Units

 

All LTIP Units in GKK
Capital LP previously granted will be forfeited.

 

 

8Exhibit 10.2

 

FIRST AMENDMENT TO EMPLOYMENT AND NONCOMPETITION AGREEMENT

 

                This First Amendment to the
Employment and Noncompetition Agreement (this “Amendment”), effective as of April 16,
2008, is made by and between GKK Manager LLC, a Delaware limited liability
company (the “Employer”), and Robert R. Foley (“Executive”).

 

                WHEREAS, the Employer and
Executive entered into that certain Employment and Noncompetition Agreement
dated as of July     , 2004 (the “Employment Agreement”);

 

                WHEREAS, pursuant to Section 14
of the Employment Agreement, the Employer and Executive desire to amend certain
terms of the Employment Agreement as set forth in this Amendment;

 

WHEREAS,
in consideration for, and upon the execution of, this Amendment by the parties
hereto, Gramercy Capital Corp. is granting Executive 13,171 restricted shares
of common stock; and

 

WHEREAS, unless the context requires otherwise,
capitalized terms used but not otherwise defined herein shall have the meanings
ascribed thereto in the Employment Agreement;

 

                NOW, THEREFORE, in consideration
of the premises and mutual covenants contained herein and for other good and
valuable consideration, the receipt of which is mutually acknowledged, the
Employer and Executive agree as follows:

 

1.             Section 1 of
the Employment Agreement is hereby amended to provide that the Original Term
will extend until August 2, 2010.

 

2.             (A)          Section 2(a) of the
Employment Agreement is hereby amended and restated in its entirety as follows:

 

“Duties.
During the Employment Period, Executive shall be employed in the business of
the Employer and its affiliates. Executive shall serve the Employer as a senior
executive and shall have the title of Managing Director of the Employer. In
such capacity, Executive, in conjunction with other senior officers and
managers of the Employer, shall be responsible for, among other things:
sourcing investments; sourcing credit facilities; underwriting, credit and risk
management; asset and portfolio management; and general administrative
functions. In addition, Executive shall serve as Chief Operating Officer of
Gramercy Capital Corp. (the “Corporation”). Executive shall have the general
powers and duties of management usually vested in the chief operating officer
of a comparable company in the same industry. 
Executive will report to the managing member of the Employer (the “Managing
Member”) with respect to functions as Managing Director and to the President
and Chief Executive Officer of the Corporation (the “CEO”) with respect to
functions as Chief Operating Officer. Executive’s duties and authority shall be
as further set forth by the Employer, but in all events shall be commensurate
with his position as Chief Operating Officer of the Corporation.”

 

(B)           Section 6(b)(ii) of
the Employment Agreement is hereby amended to delete the word “or” immediately
preceding clause (iv) and to include a new clause (v) immediately
following clause (iv) as follows:

 

 

 

“;
or (v) a material change in duties, responsibilities, status or positions
with the Employer or the Corporation that does not represent a promotion from
or maintaining of Executive’s duties, responsibilities, status or positions as
in effect immediately prior to any such change, or any removal of Executive
from or any failure to reappoint or reelect Executive to such positions, except
in connection with the termination of Executive’s employment for Cause,
disability, retirement or death”.

 

In
connection with the foregoing amendment, clause (A) of Section 6(b)(ii) is
hereby deleted in its entirety and “intentionally omitted” is hereby inserted
in lieu thereof.

 

3.             Section 3(b) of the Employment Agreement is
hereby amended by adding the following to the end of such Section:

 

“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 2008 will be paid sometime between January 1,
2009 and March 15, 2009).”

 

4.             Section 6(b)(ii) of
the Employment Agreement is hereby amended by deleting clause (iv) of the
definition of “Good Reason” contained therein, which currently states “(iv) the
Employer enters into an employment agreement with any person pursuant to which
such person will receive an annual base salary or guaranteed bonus in excess of
the highest salary and guaranteed bonus payable to Executive, and the entering
into of such employment agreement is in contravention of Section 6.4.11 of
the LLC Agreement (as defined in Section 6(c) below),” and replacing
it with the following:

 

“(iv) the Employer
enters into an employment agreement with any person pursuant to which the sum
of (A) the minimum annual base salary and bonus guaranteed to such person
under such employment agreement, plus (B) the distributions that such
person would have received during the 12 months prior to the effective date of
such employment agreement with respect to any membership interests in the
Employer to be granted to such person pursuant to the employment agreement
(assuming that such interest were outstanding during such 12-month period)
exceeds the sum of (A) Executive’s annual base salary for the year in
which such employment agreement becomes effective, plus (B) Executive’s
most recent prior annual bonus, plus (C) the distributions that Executive
received during the 12 months prior to the effective date of such employment
agreement with respect to Executive’s membership interests in the Employer.”

 

5.             Sections 7(a)(ii) and
(iii) of the Employment Agreement, which relate to the severance payments
and benefits to be received by Executive upon a termination by the Employer
without Cause or by Executive for Good Reason, are hereby amended and restated
so that the terms “two years” and “two-year period” are replaced with “12
months” and “12-month period,” respectively.

 

6.             Section 7(a)(iii) of
the Employment Agreement is hereby further amended by adding the following to
the end of such Section:

 

 

 

 

2

 

“Notwithstanding the foregoing, the acceleration of vesting of equity awards
provided for herein shall not apply to equity awards granted to Executive on or
after April 16, 2008 in the event that Executive terminates his employment
hereunder with Good Reason following a Change-in-Control (as defined in Section 6(c) above),
unless either (A) Executive’s termination would have constituted a
termination with Good Reason even if a Change-in-Control had not occurred prior
to such termination or (B) Executive’s termination followed the occurrence
of one or more of the following events:

 

(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 Employer or the Corporation,
any entity controlling, controlled by or under common control with the Employer
or the Corporation, any trustee, fiduciary or other person or entity holding
securities under any employee benefit plan or trust of the Corporation 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 Corporation representing 25% or more of
either (1) the combined voting power of the Corporation’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
Corporation (in either such case other than as a result of an acquisition of
securities directly from the Corporation); or

 

(b)             any
consolidation or merger of the Corporation where the shareholders of the
Corporation, as applicable, immediately prior to the consolidation or merger,
would not, immediately after the consolidation or merger, beneficially own (as
such term is defied in Rule 13d-3 under the Exchange Act), directly or
indirectly, shares representing in the aggregate 50% or more of the combined
voting power of the securities of the corporation issuing cash or securities in
the consolidation or merger (or of its ultimate parent corporation, if any); 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 Corporation,
other than a sale or disposition by the Corporation of all or substantially all
of the Corporation’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
Corporation, as applicable, immediately prior to such sale, or (2) the
approval by shareholders of the Corporation, as applicable, of any plan or
proposal for the liquidation or dissolution of the Corporation, as applicable;
or

 

 

 

 

3

 

(d)             the
members of the Board of Directors (the “Directors”) of the Corporation (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 Corporation’s shareholders was
approved or ratified by a vote of at least a majority of the members of the
Board then still in office who were members of the Board at the beginning of
such 24-calendar-month period shall be deemed to be an Incumbent Director.

 

Notwithstanding
the foregoing, a Change-in-Control shall not be deemed to have occurred if SL
Green Realty Corp. (or a successor thereto that directly or indirectly acquires
all or substantially all of the assets of SL Green Realty Corp., whether by
merger, consolidation, asset acquisition or otherwise) or one of its direct or
indirect subsidiaries continues to be the external manager of the Corporation
at the applicable time.”

 

7.             The following Section 7(e) is inserted after Section 7(d) of
the Employment Agreement:

 

“(e)  Release.  Notwithstanding anything herein to the
contrary, Executive’s receipt of the payments and benefits set forth in
Sections 7(a) and (d) above, including the equity award vesting
credit provided for therein, shall be subject to and conditioned upon, in all
cases, Executive’s execution of a mutual release agreement in form and
substance satisfactory to the Executive and Employer, whereby, in general, each party releases the other from all claims
such party may have against the other party (other than (A) claims against
the Employer relating to the Employer’s obligations under this Agreement and
certain other specified agreements arising in connection with or after
Executive’s termination, including, without limitation, 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, in any event, that would have a material adverse
effect on the Employer, or any other claims that may not be released by the
Employer under applicable law), and the effectiveness thereof on or
within 30 days after the date on which Executive’s employment with the Employer
terminates; provided that the foregoing shall not apply to payments of amounts
earned and accrued prior to Executive’s termination.”

 

8.             The
following Section is
hereby inserted after Section 20 of the Employment Agreement.

 

“21.         Section 409A.

 

 

 

4

 

(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 the Internal
Revenue Code of 1986, as amended (the “Code”), the Employer determines that
Executive is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of
the Code of either the Employer or the Corporation, 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 such date of
separation from service until the payment.

 

(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)           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).

 

9.             Except as expressly
amended hereby, the Employment Agreement continues in full force and effect in
accordance with its terms.  The
Employment Agreement, together with any Exhibits thereto and this Amendment,
constitutes the entire understanding and agreement of the parties hereto
regarding the employment of Executive.

 

10.           This Amendment shall
be governed and construed in accordance with the laws of the State of New York,
without regard to any principles of conflicts of laws which could cause the
application of the laws of any jurisdiction other than the State of New York.

 

11.           This Amendment may
be executed by the parties hereto in separate counterparts, each of which when
so executed and delivered shall be an original but all such counterparts
together shall constitute one and the same instrument.  Each counterpart may consist of two copies
hereof each signed by one of the parties hereto.

 

 

5

 

                IN WITNESS WHEREOF, the
undersigned have executed this Amendment as of the date first above written.

 

	
   

  	
  EMPLOYER:

  
	
   

  	
   

  	
   

  
	
   

  	
  GKK MANAGER LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  GKK Manager Member Corp.,
  its managing member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Marc Holliday

  
	
   

  	
   

  	
  Name: Marc Holliday

  
	
   

  	
   

  	
  Title: Chief Executive
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
  /s/ Robert R. Foley

  
	
   

  	
  Robert R. Foley

  

 

	
  Agreed, as to the rights and
  obligations of

  the Corporation:

  	
   

  
	
   

  	
   

  	
   

  
	
  GRAMERCY CAPITAL CORP.

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Marc Holliday

  	
   

  
	
   

  	
  Name: Marc Holliday

  	
   

  
	
   

  	
  Title: Chief Executive Officer

  	
   

  

 

 

 

 

6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]