Document:

QuickLinks
 -- Click here to rapidly navigate through this document

EXHIBIT 4.5  

 
 

LIBERTY MEDIA INTERNATIONAL, INC.
  TRANSITIONAL STOCK ADJUSTMENT PLAN    
    

 
 

ARTICLE I
  PURPOSE OF PLAN    

        The
purpose of the Plan is to provide for the supplemental grant of both stock options to purchase the common stock of Liberty Media International, Inc. (the "Company") and of
restricted shares of the Company's common stock to holders of certain outstanding options, stock appreciation rights and restricted shares issued under certain stock-based plans administered by
Liberty Media Corporation ("LMC") in connection with adjustments made to outstanding LMC stock incentive awards and restricted shares of LMC common stock as a result of the spin off of the Company
from LMC. 

 
 

ARTICLE II
  DEFINITIONS    

        2.1    Definitions.    For purposes of the Plan, the following terms shall have the meanings below stated. 

        "Approved Transaction" means any transaction in which the Board (or, if approval of the Board is not required as a matter of law, the
stockholders of the Company) shall approve (i) any consolidation or merger of the Company, or binding share exchange, pursuant to which shares of Common Stock of the Company would be changed or
converted into or exchanged for cash, securities, or other property, other than any such transaction in which the common stockholders of the Company immediately prior
to such transaction have the same proportionate ownership of the Common Stock of, and voting power with respect to, the surviving corporation immediately after such transaction, (ii) any
merger, consolidation or binding share exchange to which the Company is a party as a result of which the Persons who are common stockholders of the Company immediately prior thereto have less than a
majority of the combined voting power of the outstanding capital stock of the Company ordinarily (and apart from the rights accruing under special circumstances) having the right to vote in the
election of directors immediately following such merger, consolidation or binding share exchange, (iii) the adoption of any plan or proposal for the liquidation or dissolution of the Company,
or (iv) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all, or substantially all, of the assets of the Company. 

        "Board" means the Board of Directors of the Company. 

        "Board Change" means, during any period of two consecutive years, individuals who at the beginning of such period constituted the entire
Board cease for any reason to constitute a majority thereof unless the election, or the nomination for election, of each new director was approved by a vote of at least two-thirds of the
directors then still in office who were directors at the beginning of the period. 

        "Code" means the Internal Revenue Code of 1986, as amended from time to time, or any successor statute or statutes thereto. Reference to
any specific Code section shall include any successor section. 

        "Committee" means the committee of the Board appointed to administer this Plan pursuant to Article VII. 

        "Common Stock" each or any (as the context may require) series of the Company's common stock. 

        "Company" means Liberty Media International, Inc., a Delaware corporation, and any successor thereto. 

 

        "Control Purchase" means any transaction (or series of related transactions) in which (1) any person (as such term is defined in
Sections 13(d)(3) and 14(d)(2) of the Exchange Act), corporation or other entity (other than the Company, any Subsidiary of the Company or any employee benefit plan sponsored by the Company or any
Subsidiary of the Company) shall purchase any Common Stock of the Company (or securities convertible into Common Stock of the Company) for cash, securities or any other consideration pursuant to a
tender offer or exchange offer, without the prior consent of the Board, or (2) any person (as such term is so defined), corporation or other entity (other than the Company, any Subsidiary of
the Company, any employee benefit plan sponsored by the Company or any Subsidiary of the Company or any Exempt Person (as defined below)) shall become the  "beneficial owner" (as such term is defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, of securities of the Company representing 20% or more of the combined voting power of the then outstanding securities of the Company ordinarily (and apart from the rights
accruing under special circumstances) having the right to vote in the election of directors (calculated as provided in Rule 13d-3(d) under the Exchange Act in the case of rights to
acquire the Company's securities), other than in a transaction (or series of related transactions) approved by the Board. For purposes of this definition,  "Exempt Person" means each of (a) the Chairman of the Board, the President and each of the
directors of the Company as of the Distribution Date, and (b) the respective family members, estates and heirs of each of the Persons referred to in clause (a) above and any trust or
other investment vehicle for the primary benefit of any of such Persons or their respective family members or heirs. As used with respect to any Person, the term  "family member" means the spouse, siblings and lineal descendants of such Person. 

        "Distribution" means the distribution by LMC to the holders of LMC Common Stock of all of the outstanding shares of Common Stock. 

        "Distribution Date" means the date on which the Distribution occurs. 

        "Exchange Act" means the Securities Exchange Act of 1934, as amended. 

        "Fair Market Value" of a share of any series of Common Stock on any day means the last sale price (or, if no last sale price is reported,
the average of the high bid and low asked prices) for a share of such series of Common Stock on such day (or, if such day is not a trading day, on the next preceding trading day) as reported on the
consolidated transaction reporting system for the principal national securities exchange on which shares of such series of Common Stock are listed on such day or if such shares are not then listed on
a national securities exchange, then as reported on Nasdaq. If for any day the Fair Market Value of a share of the applicable series of Common Stock is not determinable by any of the foregoing means,
then the Fair Market Value for such day shall be determined in good faith by the Committee on the basis of such quotations and other considerations as the Committee deems appropriate. 

        "Incentive Plan" means the Liberty Media Corporation 2000 Incentive Plan (As Amended and Restated Effective April 19, 2004) and any
other stock option or incentive plan assumed by LMC pursuant to which any Participant holds an outstanding LMC Award as of the Record Date. Depending on the context, "Incentive Plan" shall mean all of
such plans or a particular one of such plans. 

        "LMC" means Liberty Media Corporation, a Delaware corporation. 

        "LMC Award" means (1) an unexercised and unexpired option to purchase LMC Common Stock, (2) an LMC SAR or (3) an
unvested award of restricted shares of LMC Common Stock. 

        "LMC Committee" means the Incentive Plan Committee of the Board of Directors of LMC. 

        "LMC Common Stock" means each or any (as the context may require) series of LMC's common stock. 

2

 

        "LMC Corporate Holder" means an individual who, immediately following the Distribution Date, is (1) an LMC employee who is employed
in a department of LMC that provides or is expected to provide services to the Company pursuant to that certain facilities and services agreement entered into between the Company and LMC in connection
with the Distribution, or (2) a member of the Board of Directors of LMC. 

        "LMI Holder" means an individual who, immediately following the Distribution Date, is an employee of the Company or its wholly owned
subsidiary, Liberty Media International Holdings, LLC. 

        "LMC SAR" means a stock appreciation right with respect to any series of LMC Common Stock. 

        "Option" means an option to purchase Common Stock, granted by the Company to a Participant pursuant to Section 6.1 of the Plan. 

        "Participant" means a person who is an LMC Corporate Holder or an LMI Holder and who, as of the Record Date, holds an outstanding LMC
Award. 

        "Person" means an individual, corporation, limited liability company, partnership, trust, incorporated or unincorporated association,
joint venture or other entity of any kind. 

        "Plan" means the Liberty Media International, Inc. Transitional Stock Adjustment Plan, as set forth herein and as from time to time
amended. 

        "Record Date" means 5:00 p.m., New York City time, on June 1, 2004. 

        "Restricted Stock Award" means an award of restricted shares of Common Stock, granted by the Company to a Participant pursuant to
Section 5.1. 

        "Stock Incentives" refers collectively to Restricted Stock Awards and Options. 

        "Subsidiary" of a Person means any present or future subsidiary (as defined in Section 424(f) of the Code) of such Person or any
business entity in which such Person owns, directly or indirectly, 50% or more of the voting, capital or profits interests. An entity shall be deemed a subsidiary of a Person for purposes of this
definition only for such periods as the requisite ownership or control relationship is maintained. 

 
 

ARTICLE III
  RESERVATION OF SHARES    

        The
aggregate number of shares of Common Stock which may be issued under this Plan shall not exceed 3,700,000 shares, subject to adjustment as hereinafter provided. Any part of such
3,700,000 shares may be issued pursuant to Restricted Stock Awards. The shares of Common Stock which may be granted pursuant to Stock Incentives will consist of either authorized but unissued shares
of Common Stock or shares of Common Stock which have been issued and reacquired by the Company, including shares purchased in the open market. The total number of shares authorized under this Plan
shall be subject to increase or decrease in order to give effect to the adjustment provision of Section 9.3 and to give effect to any amendment adopted as provided in Section 8.1. 

 
 

ARTICLE IV
  PARTICIPATION IN PLAN    

        4.1    Eligibility to Receive Stock Incentives.    Stock Incentives under this Plan may be granted only to persons who
are Participants. 

        4.2    Participation Not Guarantee of Employment.    Nothing in this Plan or in the instrument evidencing the grant of
a Stock Incentive shall in any manner be construed to limit in any way the right 

3

 

of
the Company, LMC or any of their respective Subsidiaries to terminate a Participant's employment at any time, without regard to the effect of such termination on any rights such Participant would
otherwise have under the Plan or any Incentive Plan, or give any right to such a Participant to remain employed by the Company, LMC or any of their respective Subsidiaries in any particular position
or at any particular rate of compensation. 

 
 

ARTICLE V
  STOCK AWARDS    

        5.1    Grant of Restricted Stock Awards.    

        (a)    Grant.    Restricted Stock Award(s) shall be granted to each Participant who, as of the Record Date, holds an
outstanding LMC Award(s) consisting of unvested restricted shares of LMC Common Stock. 

        (b)    Award of Shares.    Each Restricted Stock Award shall be for the same series of Common Stock as the
corresponding award of restricted shares of LMC Common Stock to which such Restricted Stock Award relates. The number of shares of Common Stock covered by a Restricted Stock Award shall be 0.05 shares
of Common Stock for each share of LMC Common Stock under the corresponding award of restricted shares of LMC Common Stock which such Restricted Stock Award replaces;  provided, however, no fractional shares of Common Stock shall be awarded under a Restricted Stock Award,
and, if the foregoing adjustment results in any fractional shares, LMC will deliver cash in lieu of such fractional share interest to the applicable Participant in the same manner as cash in lieu of
fractional share interests is paid to record holders of LMC Common Stock in the Distribution. Each Restricted Stock Award and the restricted shares of Common Stock issued thereunder shall continue to
be subject to all the terms and conditions of the applicable Incentive Plan and associated instrument under which the corresponding award of restricted shares of LMC Common Stock was made and any such
terms, conditions and restrictions as may be determined to be appropriate by the Committee. 

        (c)    Lapse of Restrictions.    The restrictions on each Restricted Stock Award shall lapse in accordance with the
terms and conditions of the applicable Incentive Plan and associated instrument under which the
corresponding award of restricted shares of LMC Common Stock was made; provided, however, that a Participant's employment or service with the Company, LMC or any of their respective Subsidiaries shall
be deemed to be employment or service with the Company and LMC for all purposes under a Restricted Stock Award. 

        (d)    Award Documentation.    Restricted Stock Awards shall be evidenced in such form as the Committee shall approve
and contain such terms and conditions as shall be contained therein or incorporated by way of reference to the Incentive Plan or any associated instrument governing the corresponding award of
restricted shares of LMC Common Stock, which need not be the same for all Restricted Stock Awards. 

        (e)    Rights with Respect to Shares.    No Participant who is granted a Restricted Stock Award shall have any rights
as a stockholder by virtue of such grant until shares are actually issued or delivered to the Participant. 

 
 

ARTICLE VI
  OPTIONS    

        6.1    Grant of Options.    

        (a)    Grant.    Option(s) shall be granted to each Participant who, as of the Record Date, holds an outstanding LMC
Award(s) consisting of an option to purchase shares of LMC Common Stock or an LMC SAR. Except as otherwise provided in this Plan, each Option shall continue to be subject to all the terms and
conditions of the applicable Incentive Plan and associated instrument 

4

 

under
which the corresponding option to purchase LMC Common Stock or LMC SAR (to the extent such terms and conditions would be applicable to the grant of an Option) was made and any such terms,
conditions and restrictions as may be determined to be appropriate by the Committee. 

        (b)    Option Shares.    Each Option shall be for the same series of Common Stock as the corresponding option for LMC
Common Stock or LMC SAR to which such Option relates. The number of shares of Common Stock exercisable under an Option shall be the number of shares of Common Stock that a Participant would have
received in the Distribution if the applicable option for LMC Common Stock had been exercised immediately prior to the Record Date or, in the case of an LMC SAR, the number of shares of Common Stock
equal to .05 times the aggregate number of shares of LMC Common Stock subject to such LMC SAR immediately prior to the Record Date; provided,  however, no
fractional
shares of Common Stock shall be awarded under an Option, and, if the conversion of an option to purchase shares of LMC Common Stock or an LMC SAR into an Option results in any fractional shares, the
number of shares of Common Stock to be exercisable under an Option shall be rounded up to the nearest whole number of shares. 

        (c)    Option Price.    The purchase price per share of Common Stock under each Option shall be established by the LMC
Committee. The Option price shall be subject to adjustment in accordance with the provisions of Section 9.3 hereof. 

        (d)    Option Documentation.    Options shall be evidenced in such form as the Committee shall approve and contain
such terms and conditions as shall be contained therein or incorporated by way of reference to the Incentive Plan or any associated instrument governing the corresponding option to purchase LMC Common
Stock or LMC SAR (to the extent such terms and conditions would be applicable to the grant of an Option), which need not be the same for all Options. 

        6.2    Exercise and/or Termination of Options.    

        (a)    Terms of Option.    Options granted under this Plan may be exercised at the same time and in the same manner as
the corresponding option to purchase LMC Common Stock or LMC SAR (to the extent applicable to the grant of an Option). Options granted under this Plan shall expire at the same time and in the same
manner as the corresponding option to purchase LMC Common Stock or LMC SAR (to the extent applicable to the grant of an Option), as provided in the applicable Incentive Plan and any associated
instrument governing such option to purchase LMC Common Stock or LMC SAR; provided, however, that a Participant's employment or service with the Company, LMC or any of their respective Subsidiaries
shall be deemed to be employment or service with the Company and LMC for all purposes under an Option. 

        (b)    Payment on Exercise.    No shares of Common Stock shall be issued on the exercise of an Option unless paid for
in full at the time of purchase. Payment for shares of Common Stock purchased upon the exercise of an Option and any amounts required under Section 9.4 shall be determined by the Committee and
may consist of (i) cash, (ii) check, (iii) promissory note (subject to applicable law), (iv) whole shares of any series of Common Stock, (v) the withholding of
shares of the applicable series of Common Stock issuable upon such exercise of the Option, (vi) the delivery, together with a properly executed exercise notice, of irrevocable instructions to a
broker to deliver promptly to the Company the amount of sale or loan proceeds required to pay the purchase price, or (vii) any combination of the foregoing methods of payment, or such other
consideration and method of payment as may be permitted for the issuance of shares under the Delaware General Corporation Law. The permitted method or methods of payment of the amounts payable upon
exercise of an Option, if other than in cash, shall be set forth in the applicable Option agreement and may be subject to such conditions as the Committee deems appropriate. 

5

 

        (c)    Value of Shares.    Unless otherwise determined by the Committee and provided in the applicable Option
agreement, shares of any series of Common Stock delivered in payment of all or any part of the amounts payable in connection with the exercise of an Option, and shares of any series of Common Stock
withheld for such payment, shall be valued for such purpose at their Fair Market Value as of the exercise date. 

        (d)    Issuance of Shares.    The Company shall effect the transfer of the shares of Common Stock purchased under the
Option as soon as practicable after the exercise thereof and payment in full of the purchase price therefor and of any amounts required by Section 9.4, and within a reasonable time thereafter,
such transfer shall be evidenced on the books of the Company. Unless otherwise determined by the Committee and provided in the applicable Option agreement, (i) no Participant or other person
exercising an Option shall have any of the rights of a stockholder of the Company with respect to shares of Common Stock subject to an Option granted under the Plan until due exercise and full payment
has been made, and (ii) no adjustment shall be made for cash dividends or other rights for which the record date is prior to the date of such due exercise and full payment. 

 
 

ARTICLE VII
  ADMINISTRATION OF PLAN    

        7.1    The Committee.    This Plan shall be administered solely by the Compensation Committee of the Board or such
other committee of the Board as the Board shall designate to administer the Plan. A majority of the Committee shall constitute a quorum thereof and the actions of a majority of the Committee at a
meeting at which a quorum is present, or actions unanimously approved in writing by all members of the Committee, shall be the actions of the Committee. Vacancies occurring on the Committee shall be
filled by the Board. The Committee shall have full and final authority to interpret this Plan and any instruments evidencing Stock Incentives granted hereunder, to prescribe, amend and rescind rules
and regulations, if any, relating to this Plan and to make all determinations necessary or advisable for the administration of this Plan. The Committee's determination in all matters referred to
herein shall be conclusive and binding for all purposes and upon all persons including, but without limitation, the Company, LMC, the shareholders of the Company, the shareholders of LMC, the
Committee and each of the members thereof, and the Participants, and their respective successors in interest. The Committee may delegate any of its rights, powers and duties to any one or more of its
members, or to any other person, by written action as provided herein, acknowledged in writing by the delegate or delegates, except that the Committee may not delegate to any person the authority to
grant Stock Incentives to, or take other action with respect to, Participants who are subject to Section 16 of the Exchange Act. Such delegation may include, without limitation, the power to
execute any documents on behalf of the Committee. 

        7.2    Liability of Committee.    No member of the Committee shall be liable for any action or determination made or
taken by him or the Committee in good faith with respect to the Plan. The Committee shall
have the power to engage outside consultants, auditors or other professionals to assist in the fulfillment of the Committee's duties under this Plan at the Company's expense. 

        7.3    Determinations of the Committee.    The Committee may, in its sole discretion, waive any provisions of any
Stock Incentive, provided such waiver is not inconsistent with the terms of the applicable Incentive Plan, any associated instrument or this Plan as then in effect. 

 
 

ARTICLE VIII
  AMENDMENT AND TERMINATION OF PLAN    

        8.1    Amendment, Modification, Suspension or Termination.    The Board may from time to time amend, modify, suspend
or terminate the Plan for the purpose of meeting or addressing any changes in 

6

 

legal
requirements or for any other purpose permitted by law except that (i) no amendment or alteration that would impair the rights of any Participant under any Stock Incentive awarded to such
Participant shall be made without such Participant's consent and (ii) no amendment or alteration shall be effective prior to approval by the Company's shareholders to the extent such approval
is then required pursuant to applicable legal requirements or the applicable requirements of the securities exchange on which the Company's Common Stock is listed. With the consent of the Participant
and subject to the terms and conditions of the Plan, the Committee may amend outstanding Stock Incentive agreements with any Participant, including any amendment which would (i) accelerate the
time or times at which the Stock Incentive may be exercised and/or (ii) extend the scheduled expiration date of the Stock Incentive. 

        8.2    Termination.    The Board may at any time terminate this Plan as of any date specified in a resolution adopted
by the Board. If not earlier terminated, this Plan shall terminate on the last date that any Option granted hereunder may be exercised or any restriction applicable to a Restricted Stock Award granted
hereunder has lapsed, whichever occurs later. 

 
 

ARTICLE IX
  MISCELLANEOUS PROVISIONS    

        9.1    Exclusion from Pension and Profit-Sharing Computation.    By acceptance of a Stock Incentive, unless otherwise
provided in the applicable Stock Incentive agreement, each Participant shall be deemed to have agreed that such Stock Incentive is special incentive compensation that will not be taken into account,
in any manner, as salary, compensation or bonus in determining the amount of any payment under any pension, retirement or other employee benefit plan, program or policy of the Company or any
Subsidiary of the Company. In addition, each beneficiary of a deceased Participant shall be deemed to have agreed that such Stock Incentive will not affect the amount of any life insurance coverage,
if any, provided by the Company on the life of the Participant which is payable to such beneficiary under any life insurance plan covering employees of the Company or any Subsidiary of the Company. 

        9.2    Government and Other Regulations.    The obligation of the Company with respect to Stock Incentives shall be
subject to all applicable laws, rules and regulations and such approvals by any governmental agencies as may be required, including the effectiveness of any registration statement required under the
Securities Act of 1933, and the rules and regulations of any securities exchange or association on which the Common Stock may be listed or quoted. For so long as any series of Common Stock is
registered under the Exchange Act, the Company shall use its reasonable efforts to comply with any legal requirements (i) to maintain a registration statement in effect under the Securities Act
of 1933 with respect to all shares of the applicable series of Common Stock that may be issued to Participants under the Plan and (ii) to file in a timely manner all reports required to be
filed by it under the Exchange Act. 

        9.3    Adjustments.    

        (a)   If
the Company subdivides its outstanding shares of any series of Common Stock into a greater number of shares of such series of Common Stock (by stock dividend, stock
split, reclassification, or otherwise) or combines its outstanding shares of any series of Common Stock into a smaller number of shares of such series of Common Stock (by reverse stock split,
reclassification, or otherwise) or if the Committee determines that any stock dividend, extraordinary cash dividend, reclassification, recapitalization, reorganization, split-up,
spin-off, combination, exchange of shares, warrants or rights offering to purchase such series of Common Stock or other similar corporate event (including mergers or consolidations other
than those which constitute Approved Transactions, adjustments with respect to which shall be governed by Section 9.3(b)) affects any series of Common Stock so that an adjustment is required to
preserve the benefits or potential benefits intended to be made available under the Plan, then the 

7

 

Committee,
in its sole discretion and in such manner as the Committee may deem equitable and appropriate, may make such adjustments to any or all of (i) the number and kind of shares of stock
subject to outstanding Stock Incentives, and (ii) the purchase or exercise price with respect to any of the foregoing, provided, however, that
the number of shares subject to any Stock Incentive shall always be a whole number. Notwithstanding the foregoing, if all shares of any series of Common Stock are redeemed, then each outstanding Stock
Incentive shall be adjusted to substitute for the shares of such series of Common Stock subject thereto the kind and amount of cash, securities or other assets issued or paid in the redemption of the
equivalent number of shares of such series of Common Stock and otherwise the terms of such Stock Incentive, including, in the case of Options or similar rights, the aggregate exercise price, shall
remain constant before and after the substitution (unless otherwise determined by the Committee and provided in the applicable Stock Incentive agreement). The Committee may, if deemed appropriate,
provide for a cash payment of a Stock Incentive to a Participant in connection with any adjustment made pursuant to this Section 9.3(a). 

        (b)   Approved Transactions; Board Change; Control Purchase.    In the event of any Approved Transaction, Board
Change or Control Purchase, notwithstanding any contrary waiting period, installment period, vesting schedule or restriction period in any Stock Incentive agreement or in the Plan, unless the
applicable Stock Incentive agreement provides otherwise: (i) in the case of an Option, each such outstanding Option granted under the Plan shall become exercisable in full in respect of the
aggregate number of shares covered thereby; and (ii) in the case of Common Stock awarded under a Restricted Stock Award, any restriction period applicable to each such Common Stock shall be
deemed to have expired and all such Common Stock shall become vested. Notwithstanding the foregoing, unless otherwise provided in the applicable Stock Incentive agreement, the Committee may, in its
discretion, determine that any or all outstanding Stock Incentives of any or all types granted pursuant to the Plan will not vest or become exercisable on an accelerated basis in connection with an
Approved Transaction if effective provision has been made for the taking of such action which, in the opinion of the Committee, is equitable and appropriate to substitute a new Stock Incentive or to
assume such Stock Incentive and to make such new or assumed Stock Incentive, as nearly as may be practicable, equivalent to the old Stock Incentive (before giving effect to any acceleration of the
vesting or exercisability thereof), taking into account, to the extent applicable, the kind and amount of securities, cash or other assets into or for which the applicable series of Common Stock may
be changed, converted or exchanged in connection with the Approved Transaction. 

        9.4    Withholding of Taxes.    The Company's obligation to deliver shares of Common Stock or pay cash in respect of
any Stock Incentives under the Plan shall be subject to applicable federal, state and local tax withholding requirements. Federal, state and local withholding tax due upon the exercise of any Option
or upon the vesting of, or expiration of restrictions with respect to Common Stock granted under Restricted Stock Awards, may, in the discretion of the Committee, be paid in shares of the applicable
series of Common Stock already owned by the Participant or through the withholding of shares otherwise issuable to such Participant, upon such terms and conditions (including the conditions referenced
in Section 6.2) as the Committee shall determine. If the Participant shall fail to pay, or make arrangements satisfactory to the Committee for the payment of, all such federal, state and local
taxes required to be withheld with respect to a Stock Incentive, then the Company shall, to the extent permitted by law, have the right to deduct from any payment of any kind otherwise due to such
Participant an amount equal to any federal, state or local taxes of any kind required to be withheld with respect to such Stock Incentive. 

        9.5    Restrictions on Benefit.    Notwithstanding any provision of this Plan to the contrary, the provisions of any
Incentive Plan concerning restrictions on benefits (in order to avoid excise taxes on 

8

 

the
Participant under Section 4999 of the Code or the disallowance of a deduction to the Company pursuant to Section 280G of the Code) are specifically incorporated by this reference. 

        IN
WITNESS WHEREOF, this document has been executed effective as of the Record Date. 

	 	 	LIBERTY MEDIA INTERNATIONAL, INC.
	

 	
 	

By:	

/s/  ELIZABETH M. MARKOWSKI      

	 	 	Name:	Elizabeth M. Markowski
	 	 	Title:	Senior Vice President

9

QuickLinks

LIBERTY MEDIA INTERNATIONAL, INC. TRANSITIONAL STOCK ADJUSTMENT PLAN

ARTICLE I PURPOSE OF PLAN

ARTICLE II DEFINITIONS

ARTICLE III RESERVATION OF SHARES

ARTICLE IV PARTICIPATION IN PLAN

ARTICLE V STOCK AWARDS

ARTICLE VI OPTIONS

ARTICLE VII ADMINISTRATION OF PLAN

ARTICLE VIII AMENDMENT AND TERMINATION OF PLAN

ARTICLE IX MISCELLANEOUS PROVISIONSQuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.1    
    

MANAGEMENT AGREEMENT  

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

WITNESSETH: 

        WHEREAS,
the Parent and the Operating Partnership have been formed by SL Green Realty Corp. (with SL Green Operating Partnership, L.P., a Maryland limited partnership ("SL Green OP") and
subsidiaries and other entities controlled by either of them, "SL Green") to continue SL Green's specialty real estate finance business in a separate company, which is to originate for its own account
and acquire whole loans, subordinate interests in whole loans, mezzanine loans and other fixed income real estate investments; 

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

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

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

AGREEMENT 

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

        1.    Definitions.    

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

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

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

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

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

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

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

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

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

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

        (k)   "Governing
Instruments" means, with respect to any Person, the articles of incorporation and bylaws in the case of a corporation, the certificate of limited partnership
(if applicable) and 

 

partnership
agreement in the case of a general or limited partnership or the articles of formation and operating agreement in the case of a limited liability company. 

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

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

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

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

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

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

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

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

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

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

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

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

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

        2.    Appointment and Duties of Manager.    

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

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

2

 

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

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

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

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

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

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

                (vi)    providing
executive and administrative personnel; 

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

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

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

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

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

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

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

                (xiv)    representing,
and making recommendations to, the Company in connection with the purchase and finance and commitment to purchase and finance of whole
loans, mezzanine 

3

 

loans
and interests therein, mortgage loans and interests therein (including on a portfolio basis), real estate, real estate securities and other real estate-related assets, and the sale and
commitment to sell such assets; 

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

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

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

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

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

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

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

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

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

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

        (c)   Asset Management Subcontracts.    Manager may enter into agreements with other parties, including its
affiliates and/or SL Green, for the purpose of engaging one or more asset managers for and on behalf, and at the sole cost and expense, of the Company to provide asset management 

4

 

and/or
similar services to the Company with respect to the Investments, pursuant to asset management agreement(s) with terms which are then customary for agreements regarding the management of assets
similar in type, quality and value to the assets of the Company; provided, that any such agreements entered into with affiliates of Manager shall be (i) on terms no more favorable to such
affiliate than would be obtained from a third party on an arm's-length basis, and (ii) approved by a majority of the Independent Directors. 

        (d)   Other Service Providers.    Subject to any required Board of Directors approval, Manager may retain for and on
behalf, and at the sole cost and expense, of the Company such services of accountants, legal counsel, appraisers, insurers and brokers, among others, including Manager's affiliates, as Manager deems
necessary or advisable in connection with the management and operations of the Company and the provision of its duties under this Agreement; provided, that any such agreement entered into with an
affiliate of Manager to perform any such services shall be engaged (i) on terms no more favorable to such affiliate than would be obtained from a third party on an arm's-length basis, and
(ii) approved by a majority of the Independent Directors. The Company hereby acknowledges and approves the terms of the Asset Servicing Agreement and the Outsource Agreement. In connection
therewith, the Company agrees that with respect to any investment which entitle it to appoint a special servicer or a sub-servicer to a special servicer, it shall use all commercially
reasonable efforts to designate the Manager or SLG Gramercy Services LLC as such special servicer or sub-servicer. In such event the fees to be paid by the Manager or SLG Gramercy Services
LLC shall be based on then customary fees paid to third-parties performing similar functions, and shall be approved by a majority of the Independent Directors of the Parent.

 

        (e)   Reporting Requirements.

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

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

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

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

        (g)   Reliance by Manager.    In performing its duties under this Section 2, Manager shall be entitled to rely
on qualified experts and professionals (including, without limitation, accountants, legal counsel and other professional service providers) hired by Manager at the Company's sole cost and expense. 

5

 

        (h)   Payment and Reimbursement of Expenses.    The Company shall pay all expenses, and reimburse Manager for
Manager's expenses incurred on its behalf, in connection with any such services to the extent such expenses are reimbursable by the Company to Manager pursuant to Section 9 hereof. 

        3.    Dedication; Other Activities.    

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

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

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

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

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

        6.    Records; Confidentiality.    

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

        (b)   Confidentiality.    Manager shall keep confidential any nonpublic information obtained in connection with the
services rendered under this Agreement and shall not disclose any such information (or use the same except in furtherance of its duties under this Agreement), except: 

6

 

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

        7.    Obligations of Manager; Restrictions.    

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

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

 

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

        8.    Compensation.    

        (a)   Manager
shall receive an annual management fee equal to 1.75% of Stockholders' Equity. The annual management fee shall be calculated on a weighted average basis and paid
in cash monthly in arrears. Manager shall make available the monthly calculation of the base management fee to the Company within fifteen (15) days following the last day of each calendar
month, and the Company shall pay Manager the base annual management fee within five business days thereafter; provided, however, that such management fee may be offset by the Manager against amounts
due to the Company. 

7

 

        (b)   Manager
shall receive 100 units of Class B limited partner interests in the Operating Partnership with the terms ascribed to such units in the limited partnership
agreement of the Operating Partnership of even date herewith upon execution of this Agreement. 

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

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

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

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

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

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

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

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

        (h)   costs
and expenses incurred contracting with third parties, including affiliates of Manager, and including expenses under agreements for servicing and outsourcing
described under the Asset Servicing Agreement and Outsource Agreement; 

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

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

        (k)   expenses
for offices of the Company and of the Manager including furniture, fixture and equipment expenses; 

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

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

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

        Manager
is not entitled to be reimbursed for wages, salaries and benefits of its officers and employees. Subject to any required Board of Directors approval, Manager may retain third
parties including accountants, legal counsel, real estate underwriters, brokers, among others, on the Company's behalf, and be reimbursed for such services. The provisions of this Section 9
shall survive the expiration 

8

 

or
earlier termination of this Agreement to the extent such expenses have previously been incurred or are incurred in connection with such expiration or termination. 

        10.    Expense Reports and Reimbursements.    Manager shall prepare a statement documenting
the Expenses incurred during, and deliver the same to the Company within forty-five days following the end of each fiscal quarter. Expenses incurred by Manager on behalf of the Company
shall be reimbursed by the Company within forty-five days following delivery of the expense statement by Manager; provided, however, that such reimbursements may be offset by Manager
against amounts due to the Company. The provisions of this Section 10 shall survive the expiration or earlier termination of this Agreement. 

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

        12.    No Joint Venture.    Nothing in this Agreement shall be construed to make the Company
and Manager partners or joint venturers or impose any liability as such on either of them. 

        13.    Term; Termination.    

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

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

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

9

 

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

        (e)   Termination Fees.    In the event this Agreement is not renewed by the Company under Section 15(b) or is
terminated under Section 13(b) or 13(d), the Company shall pay Manager on the termination date a termination fee equal to two times the sum of the higher of the aggregate annual fees paid under
this Agreement to Manager plus the higher of the aggregate annual fees paid under the Asset Servicing Agreement to the Servicer thereunder, in both instances in either of the two calendar years
immediately preceding the effective date of the termination; provided, however, that if immediately following such termination the Company becomes self-managed, the termination fee payable
will be reduced by 50%. The Company's obligation to pay a termination fee shall survive the termination of this Agreement. 

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

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

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

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

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

        15.    Assignment.    Manager may not assign its duties under this Agreement except as
described in Section 26 hereof. 

        16.    Release of Money or other Property Upon Written Request.    Manager agrees that any
money or other property of the Company held by Manager under this Agreement shall be held by Manager as custodian for the Company, and Manager's records shall be clearly and appropriately marked to
reflect the ownership of such money or other property by the Company. Upon the receipt by Manager of a written request signed by a duly authorized officer of the Company requesting Manager to release
to the Company any money or other property then held by Manager for the account of the Company under this Agreement, Manager shall release such money or other property to the Company within a
reasonable period of time, but in no event later than thirty (30) days following such request. Manager shall not be liable to the Parent, the Operating Partnership, the Independent Directors or
the Parent's or the Operating Partnership's stockholders or partners for any acts or omissions by the Company in connection with the money or other property released to the Company in accordance with
the terms hereof. The Company shall indemnify Manager and its members, managers, officers and employees 

10

 

against
any and all expenses, losses, damages, liabilities, demands, charges and claims of any nature whatsoever which arise in connection with Manager's release of such money or other property to the
Company in accordance with the terms of this Section 16. Indemnification pursuant to this Section 16 shall be in addition to any right of Manager to indemnification under
Section 11. 

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

	If to the Parent

or the Operating Partnership:	 	

Gramercy Capital Corp.

420 Lexington Avenue

New York, New York 10170

Attention: Office of General Counsel

Facsimile: (212) 216-1785
	

If to Manager:	
 	

GKK Manager LLC

c/o SL Green Realty Corp.

420 Lexington Avenue

New York, New York 10170

Attention: General Counsel

Facsimile: (212) 216-1785

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

        18.    Binding Nature of Agreement; Successors and Assigns.    This Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors and permitted assigns as provided in this Agreement. 

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

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

        21.    Indulgences, Not Waivers.    Neither the failure nor any delay on the part of a party
to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any
other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a
waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such
waiver. 

11

 

        22.    Titles Not to Affect Interpretation.    The titles of sections, paragraphs and
subparagraphs contained in this Agreement are for convenience only, and they neither form a part of this Agreement nor are they to be used in the construction or interpretation of this
Agreement. 

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

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

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

        26.    Change of Control of the Manager.    In the event the owners of Manager seek to assign
this Agreement or sell interests in the Manager which will transfer to a person not affiliated with SL Green the power to direct or control the Manager, Manager shall notify the Company as to the
terms and conditions on which such assignment or transfer is proposed to be made (the "Transfer Notice") at least thirty (30) days prior to the proposed completion of such assignment or
transfer. The Company shall have thirty (30) days to (i) match such offer, in which event Manager or its owners shall assign or transfer the interest to the Company on the same terms and
conditions as set forth in the Transfer Notice or (ii) cause a third party to match such offer, in which event Manager or its owners shall assign or transfer the interest to such third party on
the same terms and conditions as set forth in the Transfer Notice, in each case within thirty (30) days after such matching offer. If the Company does not match the offer or cause a third party
to match the offer within thirty (30) days after the Transfer Notice is sent, Manager or its owners shall be free to consummate the transaction described in the Transfer Notice. No transfer or
assignment may be proposed hereunder unless the transferee has, at the time of the Transfer Notice, (i) at least five years' experience managing assets of the type in which the Company invests
or intends to invest and (ii) at least $500 million of such assets under management. 

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

	 	 	GKK MANAGER LLC
 a Delaware limited liability company
	

 	
 	

By:	

 
	 	 	 	

	 	 	 	Name:	 
	 	 	 	Title:	 

12

 

	

 	
 	
GRAMERCY CAPITAL CORP.
 a Maryland corporation
	

 	
 	

By:	

 
	 	 	 	

	 	 	 	Name:	 
	 	 	 	Title:	 
	

 	
 	
GKK CAPITAL LP
 a Maryland limited partnership
	

 	
 	

By:	

 
	 	 	 	

	 	 	 	Name:	 
	 	 	 	Title:	 
	

 	
 	
 

13

QuickLinks

Exhibit 10.1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00068-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00068-of-00352.parquet"}]]