Document:

Exhibit 10.2

 

AMENDED AND RESTATED

ORIGINATION AGREEMENT

 

THIS AMENDED AND RESTATED
ORIGINATION AGREEMENT (this “Agreement”), dated as of April 19, 2006 is
made by and between Gramercy Capital Corp., a Maryland corporation (the “Parent”),
and SL Green Operating Partnership, L.P., a Delaware limited partnership (“SL
Green OP” and, with its parent SL Green Realty Corp., a Maryland corporation,
and subsidiaries and other entities controlled by either of them, “SL Green”).

 

RECITALS

 

WHEREAS, the Parent and
GKK Capital LP, a Delaware limited partnership (the “Operating Partnership” and
collectively with the Parent and subsidiaries and other entities controlled by
either of them, the “Company”) engaged GKK Manager LLC, a Delaware limited
liability company (the “Manager”), and a subsidiary of SL Green to provide
management services to the Company pursuant to that certain Management
Agreement dated as of August 2, 2004, as amended and restated as of the
date hereof (the “Management Agreement”) by and among the Parent, the Operating
Partnership and the Manager; and

 

WHEREAS, the Parent and
SL Green OP entered into an origination agreement dated as of August 2,
2004, to address certain elements of the relationship between the Company and
SL Green, including rights to acquire fixed income investments and SL Green OP’s
ownership in the Parent or the Operating Partnership (the “Original Origination
Agreement”);

 

WHEREAS, the Parent and
SL Green OP wish to amend and restate the Original Origination Agreement in its
entirety.

 

AGREEMENT

 

NOW THEREFORE, in
consideration of the mutual agreements herein set forth and intending to be
legally bound, the parties hereto agree that the Original Origination Agreement
shall be amended and restated in its entirety as follows:

 

1.     Limits on
Origination by SL Green.

 

(a)   Except as
otherwise set forth in paragraph (b) below:

 

(i)            SL
Green will not originate, acquire or participate in Fixed Income Investments. “Fixed
Income Investments” means debt obligations or interests in debt obligations
bearing a fixed rate of return and collateralized primarily by real property or
interests in real property located in the United States; and

 

(ii)           SL
Green will not originate, acquire or participate in Preferred Equity
Investments which bear a fixed rate of return relating primarily to real
property or interests in real property located 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 equity 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 or has
committed to own as of the date hereof and any Fixed Income Investments and/or
Preferred Equity Investments owned or committed to be owned, as of the date of
a business combination, change of control or other similar transaction, by
companies that are acquired by SL Green or with respect to which SL Green
engages in such a transaction; provided, however, that SL Green shall not
acquire companies or businesses engaged primarily in Gramercy’s primary
business activities;

 

(ii)           in
connection with any Fixed Income Investment, Preferred Equity Investment or
interest in real property which SL Green owns at any given time, SL Green may originate,
acquire or participate in Fixed Income Investments and/or Preferred Equity
Investments in connection with the sale, recapitalization or restructuring
(however characterized) of any such investment or interest;

 

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

 

(iv)          originate,
acquire or participate in any investment which is considered Distressed Debt as
of the date on which SL Green originates, acquires or participates in such
investment or SL Green enters into a binding contract therefor. “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
collateral or of the borrower both on a current and projected basis; and

 

(v)           modify,
amend, supplement, extend, refinance or restructure any portion of the
investments in item (i), (ii), (iii) or (iv) above, including, but
not limited to, changes in principal, additional investment, rate of return,
maturity or redemption date, lien priority, collateral, return priority,
guarantor and/or borrower.

 

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

 

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

 

(ii)           originate,
acquire or participate in any 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 made, in each case where more than 75% by value of the
underlying collateral is real property or interests in real property that are
located in metropolitan New York or Washington, D.C.; or

 

(iii)          originate,
acquire or participate in any investments described in Sections 1(b) (ii) or
(v) above.

 

2

 

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 or
interests in real property located in metropolitan New York or Washington, D.C.
(any such interest being an “Acquired Property”) by foreclosure, similar
conveyance or transfer in lieu thereof (a “Proceeding”), prior to the Company
selling such Acquired Property, SL Green may purchase the Acquired
Property at a price equal to the unpaid principal balance of the Fixed Income
Investment giving rise to the Proceeding on the date the Company foreclosed or
acquired the Acquired Property, plus unpaid interest at the last stated
contract (non-default) rate and, to the extent payable by the borrower under
the initial documentation evidencing the Fixed Income Investment, legal costs
incurred by the Company directly related to the conveyance of the Acquired
Property and the fee, if any, due upon the repayment or prepayment of the Fixed
Income Investment which is commonly referred to as an “exit fee” (but not
including default interest, late charges, prepayment penalties (however
denominated), extension 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 which offer 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. Upon consummation, the Company
shall deliver all leases, files and other documents related to such property. 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

 

3

 

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.

 

(c)   Right of First
Offer — Fixed Income or Preferred Equity Investment. If at any time SL
Green plans to sell to a third party any Fixed Income Investment or Preferred
Equity Investment (the “Offered Investment”), SL Green shall, unless the
Offered Investment is held in a joint venture, first give the Company written
notice of the terms and conditions, including the price and any other material
terms and conditions on which SL Green is willing to sell to a third party the
Offered Investment, provided, however, that if SL Green is
required to obtain any other party’s consent in connection with any sale of an
Offered Investment, then Gramercy’s right of first offer provided in this Section 3(c) shall
be subject to such consent. The Company shall have the right, exercisable by
written notice to SL Green, to purchase the Offered Investment within ten (10) business
days (the “Offer Period”) after the date the notice was delivered to the
Company, upon the terms and conditions contained in the notice, without regard
to any proposed closing date for any third party contained in such notice. If
the Company exercises such right, then the Company shall purchase the Offered
Investment within the Offer Period on such terms and conditions, and subject to
customary representations and warranties. In the event that the Company does
not purchase the Offered Investment as aforesaid, SL Green shall have the right
to sell the Offered Investment to a third party 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 the Company,
without regard to the Offer Period. If the Offered Investment is not sold in
such time frame or otherwise as aforesaid, then any plan by SL Green to sell
such Offered Investment shall again be subject to this Section 3(c). In
the event that the Company shall have exercised its right to purchase the
Offered Investment and the Company defaults in the purchase of the Offered
Investment on the agreed terms, the Company shall be deemed to have waived its
rights under this Section 3(c) with respect to the Offered
Investment, and SL Green shall thereafter have the right to sell the Offered
Investment to any other person without restrictions. Notwithstanding anything
in the foregoing to the contrary, the provisions of this Section 3(c) shall
not apply to any sale, transfer, conveyance or similar event, of a Fixed Income
Investment or Preferred Equity Investment to the debtor or issuer, as the case may be,
or any of their affiliates.

 

4.     SL Green’s
Right to Purchase Additional Shares/Units. If after the date hereof the
Company desires to sell or issue or cause to be sold or issued any shares of
the Company’s common stock, $.001 par value (the “Shares”), common units of
limited partnership interest in the Operating Partnership (“Units”) or other
securities convertible into or exchangeable for Shares or Units (“Convertible

 

4

 

Securities”) in connection with any private or public
offering, any merger, consolidation or similar business combination transaction
or any sale of all or substantially all of the assets of the Parent or the
Operating Partnership, SL Green shall have the right (but not the obligation)
to purchase up to 25% of any such Shares, Units or Convertible Securities, as
the case may be. The Company shall give SL Green at least five days’
written notice of any proposed sale or issuance setting forth all of the
material terms thereof, and SL Green shall confirm in writing its intention to
purchase, and the number of Shares, Units or Convertible Securities, as the
case may be, SL Green intends to 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,
Units or Convertible Securities, as the case may be, 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 4 shall be in cash at the same
price per Share, Unit or Convertible Security, as the case may be, to be
received by the Company, and with the same representations, warranties and
other terms and conditions as are offered to other purchasers, and SL Green’s
purchase shall close simultaneously with sales or issuances to other
purchasers.

 

5.     REIT Status.
The Parent shall use its best efforts to operate as a real estate investment
trust (a “REIT”) under Section 856 of the Internal Revenue Code of 1986,
as amended (the “Code”) during each taxable year.

 

6.     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
shall deliver such executed form to SLG REIT with respect to each year no
later than January 21 of each year for execution and filing by SLG REIT.

 

7.     Legal Opinion.
Not later than January 21 of each year, 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.

 

8.     Other Parent
Obligations.

 

(a)   The Parent or its
successor, as the case may be, shall provide in its bylaws for a continued
election that Title 3, Subtitle 7 of the Corporations and Associations Article of
the Annotated Code of Maryland (or any successor statute) shall not apply to
any acquisition of Shares of the Parent or its successor, as the case may be,
by SL Green, with respect to Shares (or other securities convertible into or
exchangeable for Shares) (i) presently owned by SL Green, (ii) acquired
in the future by SL Green in connection with the rights granted to SL Green
pursuant to Section 4 of this Agreement or any other agreement with the
Company, or (iii) acquired pursuant to any approval or consent of the
Parent’s Board of Directors. For the avoidance of doubt, the Parent or its
successor, as the case may be, shall in no way alter or amend its bylaws
to adversely affect such election, with respect to such Shares (or other
securities convertible into or exchangeable for Shares) owned by SL Green as
described in the preceding sentence;

 

5

 

(b)   The Parent or its
successor, as the case may be, shall not adopt any resolution amending,
altering or repealing, or take any action with the effect of amending, altering
or repealing, the resolution exempting Parent from the provisions of Title 3,
Subtitle 6 of the Corporations and Associations Article of the Annotated
Code of Maryland (or any successor statute) (the “Business Combination Act”) in
a manner that would have the effect of making SL Green an interested
stockholder (as defined in the Business Combination Act) or preventing or
delaying any business combination (as defined in the Business Combination Act)
involving SL Green, with respect to Shares (or other securities convertible
into or exchangeable for Shares) (i) presently owned by SL Green, (ii) acquired
in the future by SL Green in connection with the rights granted to SL Green
pursuant to Section 4 of this Agreement or any other agreement with the
Company, or (iii) acquired pursuant to any approval or consent of the
Parent’s Board of Directors; and

 

(c)   For so long as the
Parent’s Shares shall be listed on the New York Stock Exchange, the Parent
shall obtain stockholder approval for the preemptive rights granted to SL Green
pursuant to Section 4 of this Agreement, and shall obtain such stockholder
approval at least once during each subsequent five-year period that begins one
day after the end of the preceding five-year period. In order to effectuate the
foregoing, the Parent shall include a proposal for its stockholders to approve
the preemptive rights granted to SL Green pursuant to Section 4 of this
Agreement, in its proxy statement in respect of the last annual stockholder
meeting that is to be held by the Parent during any such five-year period.

 

9.     Term. This
Agreement shall remain in full force and effect throughout the term of the
Management Agreement as extended in accordance therewith, and terminate (a) simultaneously
with the expiration or earlier termination of the Management Agreement or (b) on
30 days’ notice by SL Green to the Company in the event that neither SL Green
nor any of its affiliates shall be the managing member of the Manager. In the
event of a termination pursuant to Section 8(b) hereof or termination
of the Management Agreement pursuant to Section 13(c) of the
Management Agreement, then the terms and conditions of Section 1 shall
survive such termination for a period of one year with respect only to any
potential investment described in Section 1 as to which, at the time of
termination, Manager has commenced due diligence. Further, the terms and
conditions of Sections 5, 6, and 7 hereof shall survive the termination of this
Agreement and the Management Agreement for as long as SL Green continues to own
or has the right to acquire pursuant to outstanding convertible securities at
least 10% of the Shares of the Parent then outstanding.

 

10.   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

  
			

 

6

 

	
  (b)

  	
  If
  to SL Green, to:

  
	
   

  
	
   

  	
  SL Green
  Operating Partnership, L.P.

  
	
   

  	
  420 Lexington
  Avenue

  
	
   

  	
  New York, New
  York 10170

  
	
   

  	
  Attention:
  General Counsel

  
			

 

11.   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.

 

12.   Amendment and
Modification. Neither this Agreement nor any of the terms or provisions
hereof may be changed, supplemented, waived or modified except by a
written instrument executed by the parties hereto (or in the case of a waiver,
by the party granting such waiver).

 

13.   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.

 

14.   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 internal laws of the State of New York, without
regard to any conflicts of laws principles thereof.

 

15.   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 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.

 

7

 

IN WITNESS WHEREOF, the
parties 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:

  

 

8Exhibit 10.3

 

SECOND
AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

 

This SECOND AMENDED AND RESTATED REGISTRATION
RIGHTS AGREEMENT (this “Agreement”),
is amended and restated as of April 19, 2006, and is entered into by and
among Gramercy Capital Corp., a Maryland corporation (the “Company”),
and SL Green Operating Partnership, L.P., a Delaware limited partnership (the “Holder”). Capitalized terms not
otherwise defined herein shall have the meanings ascribed to them in Section 1
hereto.

 

RECITAL

 

This AGREEMENT is made in
connection with the (i) Subscription Agreement for the purchase of the
Company’s common stock, par value $0.001 per share (the “Common
Shares”) between the Company and each Holder, dated as of December 3,
2004, and (ii) Amended and Restated Origination Agreement (the “Origination Agreement”), dated as of April 19,
2006, by and between the Company and the Holder. In order to induce each Holder
to purchase Common Shares in connection with the Origination Agreement or
otherwise, the Company agrees to provide the registration rights provided for
in this Agreement to each Holder and its direct and indirect transferees.

 

AGREEMENT

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

“Common
Shares” shall mean the shares of common stock of the Company,
par value $0.001 per share, held by Holders from time to time and any
securities into which such shares are converted or exchanged.

 

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

 

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

 

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

 

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

 

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

 

“Holders”
shall mean SL Green Operating Partnership, L.P., in its capacity as a holder of
Registrable Securities, and any transferree of the Registrable Securities. For
purposes of this Agreement, the Company may deem and treat the registered
holder of a Registrable Security as each Holder and absolute owner thereof,
unless notified to the contrary in writing by the registered Holder thereof.

 

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

 

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

 

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

 

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

 

2

 

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

 

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

 

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

 

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

 

Section 2.               Shelf
Registrations.

 

a.             Shelf Registration.
The Company agrees to file with the Commission promptly at any time that the
issuer of the Registrable Securities is eligible to use Form S-3 (or any
similar or successor form), a registration statement under the Securities Act
on Form S-3 (or any similar or successor form) for the offering on a
continuous or delayed basis in the future of the Registrable Securities (the “Shelf Registration Statement”), and
will use commercially reasonable efforts to cause such Shelf Registration
Statement to be declared effective by the Commission as soon as practicable
thereafter. The Shelf Registration Statement shall be on an appropriate form and
the registration statement and any form of prospectus included therein (or
prospectus supplement relating thereto) shall reflect the plan of distribution
or method of sale as each Holder may from time to time notify the Company.

 

b.             Effectiveness.
The Company shall use commercially reasonable efforts to keep the Shelf
Registration Statement continuously effective for the period beginning on the
date on which the Shelf Registration Statement is declared effective and ending
on the date that all of the Registrable Securities registered under the Shelf
Registration Statement cease to be Registrable Securities. During the period
that the Shelf Registration Statement is effective, the Company shall
supplement or make amendments to the Shelf Registration Statement, if required
by the Securities Act or if reasonably requested by each Holder (whether or not
required by the form on which the securities are being registered),
including to reflect any specific plan of distribution or method of sale, and
shall use its commercially reasonable efforts to have such supplements and
amendments declared effective, if required, as soon as practicable after filing.
Without limiting the foregoing, if there is an increase in the number of Registrable
Securities and any of the Registrable Securities as so increased are not then
registered under the Shelf Registration Statement (the “Unregistered
Securities”), the Company shall promptly supplement or make
amendments to the Shelf Registration Statement or file an additional Shelf
Registration Statement to register the Unregistered Securities, and shall use
its commercially reasonable efforts to have such supplements, amendments or
additional Shelf Registration Statement declared effective, if not already
effective, as soon as practicable after filing.

 

Section 3.               Registration on
Request.

 

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

 

3

 

reasonable
efforts to effect the registration under the Securities Act of the Common
Shares which the Company has been so requested to register by the Demand Party.

 

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

 

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

 

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

 

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

 

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

 

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

 

e.             Priority in
Requested Registrations. If a requested registration pursuant to this Section 3
involves an underwritten offering and the managing underwriter advises the
Company and the Demand Party in writing that, in its opinion, the number of
securities to be included in such registration would be likely to have an
adverse effect on the price, timing or distribution of the securities to be
offered in such offering as contemplated by the Holders (an “Adverse Effect”), then the Company
shall include in such registration Common Shares requested to be included in
such registration by the Demand Party and all other Holders of Common Shares
pursuant to this Section 3 on a pro rata basis
based on the number of Common Shares requested to be included, to the extent
that the managing underwriter believes that such Common Shares can be sold in
such offering without having an Adverse Effect. If the

 

4

 

managing
underwriter of any underwritten offering shall advise the Holders participating
in a registration pursuant to this Section 3 that the Common Shares
covered by the registration statement cannot be sold in such offering within a
price range acceptable to the Demand Party, then the Demand Party shall have
the right to notify the Company that it has determined that the registration
statement be abandoned or withdrawn, in which event the Company shall abandon
or withdraw such registration statement.

 

Section 4.               Black-Out
Periods.

 

Notwithstanding anything
herein to the contrary, the Company shall have the right, exercisable from time
to time by delivery of a notice authorized by the Board, on not more than two
occasions in any 12-month period, to require each Holder not to sell pursuant
to a registration statement or similar document under the Securities Act filed
pursuant to this Agreement or to suspend the effectiveness thereof if at the
time of the delivery of such notice, the Board has considered a plan to engage
no later than 60 days following the date of such notice in a firm commitment
underwritten public offering or if the Board has reasonably and in good faith
determined that such registration and offering, continued effectiveness or sale
would materially interfere with any material transaction involving the Company;
provided, however, that in no event shall the black-out period
extend for more than 60 days on any such occasion. The Company, as soon as
practicable, shall (i) give each Holder prompt written notice in the event
that the Company has suspended sales of Registrable Securities pursuant to this
Section 4, (ii) give each Holder prompt written notice of the
completion of such offering or material transaction and (iii) promptly
file any amendment necessary for any registration statement or prospectus of
each Holder in connection with the completion of such event.

 

The Holder agrees by
acquisition of the Registrable Securities that upon receipt of any notice from
the Company of the happening of any event of the kind described in this Section 4,
such Holder will forthwith discontinue its disposition of Registrable
Securities pursuant to the registration statement relating to such Registrable
Securities until the earlier of (x) such Holder’s receipt of the notice of
completion of such event and (y) the end of such 60 day black-out period.

 

Section 5.               Registration
Procedures.

 

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

 

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

 

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

 

5

 

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

 

(iv)          use its
commercially reasonable efforts to promptly register or qualify all Registrable
Securities under such other securities or “blue sky” laws of such jurisdictions
as each Holder and the underwriters of the securities being registered, if any,
shall reasonably request, to keep such registration or qualification in effect
for so long as such registration statement remains in effect, and take any
other action which may be reasonably necessary or advisable to enable each
Holder to consummate the disposition in such jurisdiction of the securities
owned by each Holder, except that the Company shall not for any such purpose be
required to qualify generally to do business as a foreign company or to
register as a broker or dealer in any jurisdiction where it would not otherwise
be required to qualify but for this Section 5(a)(iv), or to consent to
general service of process in any such jurisdiction, or to be subject to any
material tax obligation in any such jurisdiction where it is not then so
subject;

 

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

 

(vi)          use its
commercially reasonable efforts to comply or continue to comply in all material
respects with the Securities Act and the Exchange Act and with all applicable rules and
regulations of the Commission thereunder so as to enable each Holder to sell
its Registrable Securities pursuant to Rule 144 promulgated under the
Securities Act, as further agreed to in Section 9 hereof;

 

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

 

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

 

(ix)           use its
commercially reasonable efforts to cooperate with each Holder to facilitate the
timely preparation and delivery of certificates representing Registrable
Securities to

 

6

 

be
sold and not bearing any Securities Act legend; and enable certificates for
such Registrable Securities to be issued for such number of shares and
registered in such names as each Holder may reasonably request in writing
at least two Business Days prior to any sale of Registrable Securities;

 

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

 

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

 

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

 

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

 

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

 

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

 

(xvi)        if
such offering is an underwritten offering, enter into such agreements
(including an underwriting agreement in such form, scope and substance as is
customary in underwritten offerings) and take all such other appropriate and
reasonable actions requested by Holders (including those reasonably requested
by the managing underwriters) in order to expedite

 

7

 

or
facilitate the disposition of such Registrable Securities, and in such
connection, (i) use commercially reasonable efforts to obtain opinions of
counsel to the Company and updates thereof (which opinions (in such form, scope
and substance) shall be reasonably satisfactory to the managing underwriters
and counsel to Holders), addressed to each Holder and each of the underwriters
as to the matters customarily covered in opinions requested in underwritten
offerings and such other matters as may be reasonably requested by such
counsel and underwriters; (ii) use commercially reasonable efforts to
obtain “comfort” letters and updates thereof from the independent certified public
accountants of the Company (and, if necessary, any other independent certified
public accountants of any subsidiary of the Company or of any business acquired
by the Company for which financial statements and financial data are, or are
required to be, included in the Registration Statement), addressed to each
Holder (unless such accountants shall be prohibited from so addressing such
letters by applicable standards of the accounting profession) and each of the
underwriters, such letters to be in customary form and covering matters of
the type customarily covered in “comfort” letters in connection with
underwritten offerings; and (iii) if requested and if an underwriting
agreement is entered into, provide indemnification provisions and procedures
substantially to the effect set forth in Section 6 of this Agreement with
respect to all parties to be indemnified pursuant to Section 6 of this
Agreement or any other form of indemnification, contribution or similar
rights and procedures customarily given by issuers registering securities in an
underwritten offering. The above shall be done at each closing under such
underwriting or similar agreement, or as and to the extent required thereunder.

 

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

 

Each Holder agrees by acquisition
of the Registrable Securities that (i) upon receipt of any notice from the
Company of the happening of any event of the kind described in Section 5(a)(v),
such Holder will forthwith discontinue its disposition of Registrable
Securities pursuant to the registration statement relating to such Registrable
Securities until such Holder’s receipt of the copies of the supplemented or
amended prospectus contemplated by Section 5(a)(v); (ii) upon
receipt of any notice from the Company of the happening of any event of the
kind described in clause (A) of Section 5(a)(xiv), such Holder
will discontinue its disposition of Registrable Securities pursuant to such
registration statement until such Holder’s receipt of the notice described in
clause (C) of Section 5(a)(xiv); and (iii) upon receipt
of any notice from the Company of the happening of any event of the kind
described in clause (B) of Section 5(a)(xiv), each Holder will
discontinue its disposition of Registrable Securities pursuant to such
registration statement in the applicable state jurisdiction(s) until such
Holder’s receipt of the notice described in clause (C) of Section 5(a)(xiv).

 

Section 6.               Indemnification.

 

a.             Indemnification by
the Company. The Company agrees to indemnify and hold harmless each Holder,
its partners, officers, directors, trustees, stockholders, employees, agents
and investment advisers, and each Person, if any, who controls each Holder
within the meaning of the Securities Act or the Exchange Act, together with the
partners, officers, directors, trustees, stockholders, employees, agents and
investment advisers of such controlling person, against any losses, claims,

 

8

 

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

 

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

 

c.             Notices of Claims,
etc. Promptly after receipt by an indemnified party of notice of the
commencement of any action or proceeding involving a claim referred to in the
preceding paragraphs of this Section 5, such indemnified party
will, if a claim in respect thereof is to be made against an indemnifying
party, give written notice to the latter of the commencement of such action; provided,
however, that the failure of any indemnified party to give notice as
provided herein shall not relieve the indemnifying party of its obligations
under the preceding paragraphs of this Section 5, except to the
extent that the indemnifying party is actually prejudiced by such failure to
give notice. In case any such action is brought against an indemnified party,
unless in such indemnified party’s reasonable judgment a

 

9

 

conflict
of interest between such indemnified and indemnifying parties may exist in
respect of such claim, the indemnifying party shall be entitled to assume the
defense thereof, for itself, if applicable, together with any other indemnified
party similarly notified, and after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof, the
indemnifying party shall not be liable to the indemnified party for any legal
or other expenses subsequently incurred by the latter in connection with the
defense thereof.

 

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

 

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

 

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

 

10

 

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

 

b.             as a condition
precedent to the obligations of Holders under this Section 7, all
executive officers and directors of the Company then holding Common Stock of
the Company shall enter into similar agreements; and

 

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

 

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

 

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

 

Section 8.               Lock-Up
Agreement. The Company agrees (except pursuant to registration statements
on Forms S-4 or S-8), if timely requested in writing by the underwriters in a
public offering of Registrable Securities, not to (i) sell, offer to sell,
contract or agree to sell, hypothecate, hedge, pledge, grant any option to
purchase or otherwise dispose of or agree to dispose of, directly or
indirectly, any Common Stock or any other equity security of the Company (or
any security convertible into or exchangeable or exercisable for any equity
security of the Company) or warrants or other rights to purchase Common Stock
or any other equity security of the Company (or any security convertible into
or exchangeable or exercisable for any equity security of the Company), or file
or cause to be declared effective a registration statement under the Securities
Act relating to the offer and sale of any shares of Common Stock or any other
equity security of the Company (or any security convertible into or
exchangeable or exercisable for any equity security of the Company), or (ii) enter
into any swap or other arrangement that transfers to another, in whole or in
part, any of the economic consequences of ownership of Common Stock or any
other equity security of the Company (or any security convertible into or
exchangeable or exercisable for any equity security of the Company), or
warrants or other rights to purchase Common Stock or any other equity security
of the Company (or any security convertible into or exchangeable or exercisable
for any equity security of the Company), whether any such transaction is to be
settled by delivery of such securities, in cash or otherwise, during the time
period beginning 7 days prior to the effective date of the registration
statement for Registrable Securities or, in the case of a Shelf Registration
Statement, the date of an underwriting agreement and ending on the date
thereafter reasonably requested by the underwriter (not to exceed 90 days
thereafter), without the prior written consent of the underwriters.

 

Section 9.               Covenants
Relating To Rule 144 and Form S-3. At such times as the Company
is obligated to file reports in compliance with either Section 13 or 15(d) of
the Exchange Act, the Company covenants that it will file any reports required
to be filed by it under the Securities Act and the Exchange Act and that it
will take such further action as each Holder may reasonably request, all
to the extent required from time to time to (i) enable each Holder to sell
Registrable Securities without registration under the Securities Act within the
limitation of the exemptions provided by (a) Rule 144 under the
Securities Act, as such rule may be amended from time to time or (b) any
similar rule or regulation hereafter adopted by the Commission, and (ii) enable
the Company to be eligible to file a Shelf Registration Statement on Form S-3
(or any similar or successor form). Upon the request of each Holder,

 

11

 

the
Company will deliver to each Holder a written statement as to whether it has
complied with such requirements.

 

Section 10.             Miscellaneous.

 

a.             Termination;
Survival. The rights of each Holder under this Agreement shall terminate
upon the date that all of the Registrable Securities held by such Holder may be
sold during any three-month period in a single transaction or series of
transactions without volume limitations under Rule 144 (or any successor
provision) under the Securities Act. Notwithstanding the foregoing, the
obligations of the parties under Section 5 and paragraphs (d), (e) and
(g) of this Section 10 shall survive the termination of this
Agreement.

 

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

 

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

 

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

 

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

 

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

 

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

 

12

 

	
  If to a Holder:

  	
  SL Green Operating Partnership, L.P.

  
	
   

  	
  420 Lexington Avenue

  
	
   

  	
  New York, New York 10170

  
	
   

  	
  Attn: Andrew S. Levine

  
	
   

  	
   

  
	
   

  	
  If any Holder is a
  transferee, to the address of such Holder set forth in the transfer
  documentation provided to the Company, or such other address as any Holder may hereafter
  specify by notice to the Company.

  
	
   

  
	
   

  
	
   

  
	
   

  	
   

  
	
  If to the Company:

  	
  Gramercy Capital Corp.

  
	
   

  	
  420 Lexington Avenue

  
	
   

  	
  New York, New York 10170

  
	
   

  	
  Attn: Robert R. Foley

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  Clifford Chance US LLP

  
	
   

  	
  31 West 52nd Street

  
	
   

  	
  New York, New York 10019

  
	
   

  	
  Attention: Robert E. King Jr.

  
	
   

  	
  Facsimile: 212-878-8375

  

 

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

 

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

 

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

 

13

 

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

 

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

 

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

 

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

 

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

 

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

 

14

 

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

 

	
   

  	
  GRAMERCY CAPITAL CORP.

  
	
   

  	
  a Maryland corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   By:

  	
   

  	
   

  
	
   

  	
   Name:

  
	
   

  	
   Title:

  
	
   

  	
   

  
	
   

  	
  HOLDER

  
	
   

  	
   

  
	
   

  	
  SL GREEN OPERATING PARTNERSHIP,

  
	
   

  	
  a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   By:

  	
   

  	
   

  
	
   

  	
   Name:

  
	
   

  	
   Title:

  

 

15

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