Document:

Exhibit
10.3

EXECUTION VERSION

SECOND AMENDED AND RESTATED GUARANTY

This
SECOND AMENDED AND RESTATED GUARANTY (“Guaranty”) is executed as of June
28, 2007, by GRAMERCY CAPITAL CORP., a Maryland
corporation having its principal place of business at c/o SL Green Realty
Corp., 420 Lexington Avenue, New York, New York 10170, GKK
CAPITAL LP, a Delaware limited partnership having its
principal place of business at c/o SL Green Realty Corp., 420 Lexington Avenue,
New York, New York 10170, GRAMERCY INVESTMENT TRUST, a
Maryland real estate investment trust having its principal place of business at
c/o SL Green Realty Corp., 420 Lexington Avenue, New York, New York 10170, and GKK
TRADING CORP., a Delaware corporation having an address at a
Delaware corporation having its principal place of business at c/o SL Green
Realty Corp., 420 Lexington Avenue, New York, New York 10170,
(collectively “Guarantors” and each, individually, a “Guarantor,”
(references to “Guarantors” in this Guaranty being understood to refer to, with
respect to each Guarantor, such Guarantor)), for the benefit of GOLDMAN SACHS
MORTGAGE COMPANY, a New York limited liability partnership, having an address
at 85 Broad Street, New York, New York 10004 (“Buyer”).

W  I  T
N  E  S  E  T  H :

WHEREAS, Buyer, Gramercy Warehouse Funding II LLC, a
Delaware limited liability company, and GKK Trading Warehouse II LLC, a
Delaware limited liability company (collectively, the “Seller”), are
parties to that certain Second Amended and Restated Master Repurchase Agreement
dated as of the date hereof (together with any amendments or annexes thereto,
the “Repurchase Agreement”);

WHEREAS, Guarantors indirectly own 100% of the
membership interests in Seller and Guarantors will derive benefits, directly
and indirectly, from the execution, delivery and performance by Seller of the
Transaction Documents, and the transactions contemplated by the Repurchase
Agreement; and

WHEREAS, it is a condition precedent to the Repurchase
Agreement and the consummation of the Transactions thereunder that Guarantors
execute and deliver this Guaranty for the benefit of Buyer.

NOW, THEREFORE, for good and valuable consideration,
the receipt and legal sufficiency of which are hereby acknowledged, Guarantors
do hereby agree as follows:

ARTICLE I

NATURE AND SCOPE
OF GUARANTY

1.1           Guaranty of
Obligation. 
Subject to the terms hereof, Guarantors hereby, jointly and severally,
irrevocably and unconditionally guarantee to Buyer and its successors and
assigns as a primary obligor the payment and performance of the Guaranteed
Obligations (as herein defined) as and when the same shall be due and payable.

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1.2           Definition
of Guaranteed Obligations. 
As used herein, the term “Guaranteed Obligations” means:

(a)           the prompt
and complete payment of the Aggregate Repurchase Price with respect to the
Purchased Loans on the Repurchase Date and all other amounts due under the
Transaction Documents, all amounts in respect of all obligations and
indemnities of Seller provided for in the Transaction Documents, and all
damages provided for in the Transaction Documents in respect of a failure or
refusal by Seller to make any such payment, voluntary or involuntary, whether
direct or indirect, absolute or contingent, now or hereafter existing or owing
to Buyer; provided, however, notwithstanding any other provision herein, the
aggregate sum of the Guaranteed Obligations paid by the Guarantors under this Section 1.2(a) of this Guaranty shall
not exceed an amount equal to twenty percent (20%) of the sum of (i) the
Aggregate Repurchase Price under the Repurchase Agreement and (ii) the
Securities Aggregate Repurchase Price under the Securities Repurchase Agreement;

(b)           any obligations or liabilities of Seller to
Buyer to the extent of actual loss, damage, cost or expense incurred by Buyer
(including attorneys’ fees and costs reasonably incurred) (collectively, “Damages”)
resulting from any of the following:

(i)            any fraud or
intentional misrepresentation committed by Seller, Guarantors or any of their
respective Affiliates in connection with the execution and delivery of this
Guaranty, the Repurchase Agreement, or any of the other Transaction Documents,
or any certificate, report, financial statement or other instrument or document
furnished to Buyer at the time of the closing of the Repurchase Agreement or
during the term of the Repurchase Agreement;

(ii)           the
misappropriation or intentional misapplication by Seller, Guarantors or any of
their respective Affiliates of any funds to the extent collected by any of them
or any agent thereof and not applied in accordance with the Repurchase
Agreement;

(iii)          (A) the
incurrence of any lien imposed or caused to be imposed either directly or
indirectly by Seller, Guarantors or any of their respective Affiliates on any
Purchased Loan unless permitted under the Repurchase Agreement, (B) any Change
of Control resulting in a material breach of any material covenant contained in
the Repurchase Agreement, (C) any transfer, assignment or sale of any Purchased
Loan in violation of the Repurchase Agreement, (D) any Significant Modification
to a Purchased Loan that would have a Material Adverse Effect on Buyer or (E)
the material breach of any material separateness covenants contained in the
Repurchase Agreement, in each case, in violation of the applicable covenant set
forth in the Repurchase Agreement; and

(iv)          during the
continuance of an Event of Default, any distribution by Seller to its
equityholders in violation of the Repurchase Agreement and, in the case of such
a violation, only to the extent of such distribution; and

(c)           following
any bankruptcy of Seller which results from the Seller making a filing under
the Bankruptcy Code, or any joining or colluding by Seller, Guarantors or any
of their Affiliates in the filing of an involuntary filing against Seller under
the Bankruptcy

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Code,
all Damages incurred by Buyer (including attorneys’ fees and costs reasonably
incurred) as a result of such bankruptcy of Seller.

1.3           Nature of
Guaranty.  This Guaranty is an
irrevocable, absolute, continuing guaranty of payment and performance and not a
guaranty of collection.  This Guaranty
may not be revoked by Guarantors and shall continue to be effective with
respect to any Guaranteed Obligations arising or created after any attempted
revocation by Guarantors.  This Guaranty
may be enforced by Buyer and any subsequent assignee of Buyer under the
Repurchase Agreement and shall not be discharged by the assignment or
negotiation of all or part thereof.

1.4           Guaranteed
Obligations Not Reduced by Offset. 
The Guaranteed Obligations and the liabilities and obligations of
Guarantors to Buyer hereunder, shall not be reduced, discharged or released
because or by reason of any existing or future offset, claim or defense of
Seller, or any other party, against Buyer or against payment of the Guaranteed
Obligations, other than payment of the Guaranteed Obligations, whether such
offset, claim or defense arises in connection with the Guaranteed Obligations
(or the transactions creating the Guaranteed Obligations) or otherwise.

1.5           Payment By
Guarantors. 
If all or any part of the Guaranteed Obligations shall not be punctually
paid, whether on demand, maturity, acceleration or otherwise, Guarantors shall,
within five (5) Business Days after demand by Buyer, and without presentment,
protest, notice of protest, notice of non-payment, notice of intention to
accelerate the maturity, notice of acceleration of the maturity, or any other
notice whatsoever, pay in lawful money of the United States of America, the
amount then due on the Guaranteed Obligations to Buyer at Buyer’s address as
set forth herein.  Such demand(s) may be
made at any time coincident with or after the time for payment of all or part
of the Guaranteed Obligations pursuant to the Repurchase Agreement.  Such demand shall be deemed made, given and
received in accordance with the notice provisions hereof.

1.6           No Duty To
Pursue Others. 
It shall not be necessary for Buyer (and Guarantors hereby waive any
rights which Guarantors may have to require Buyer), in order to enforce the
obligations of Guarantors hereunder, first to (i) institute suit or exhaust its
remedies against Seller or others liable on the Guaranteed Obligations or any
other person, (ii) enforce or exhaust Buyer’s rights against any collateral
which shall ever have been given to secure the Guaranteed Obligations, (iii)
join Seller or any others liable on the Guaranteed Obligations in any action
seeking to enforce this Guaranty or (iv) resort to any other means of obtaining
payment of the Guaranteed Obligations. Buyer shall not be required to mitigate
damages or take any other action to collect or enforce the Guaranteed
Obligations.

1.7           Waivers.  Guarantors agree to the provisions of the
Transaction Documents, and hereby waive notice of (i) any loans or advances
made by Buyer to Seller or any purchases of Purchased Loans made by Buyer from
Seller, (ii) acceptance of this Guaranty, (iii) any amendment or extension of
the Repurchase Agreement or of any other Transaction Documents, (iv) the
execution and delivery by Seller and Buyer of any other agreement or of Seller’s
execution and delivery of any other documents arising under the

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Transaction
Documents or in connection with the Guaranteed Obligations, (v) the occurrence
of any breach by Seller or an Event of Default under the Transaction Documents,
(vi) Buyer’s transfer or disposition of the Transaction Documents, or any part
thereof, (vii) sale or foreclosure (or posting or advertising for sale or
foreclosure) of any collateral for the Guaranteed Obligations, (viii) protest,
proof of non-payment or default by Seller, or (ix) any other action at any time
taken or omitted by Buyer, and, generally, except to the extent required by the
terms hereof, all other demands and notices of every kind in connection with
this Guaranty, the Transaction Documents, any documents or agreements
evidencing, securing or relating to any of the Guaranteed Obligations.

1.8           Payment of
Expenses.  In the event that
Guarantors should breach or fail to timely perform any provisions of this
Guaranty, Guarantors shall, within five (5) Business Days after demand by
Buyer, pay Buyer all reasonable out-of-pocket costs and expenses (including
court costs and reasonable attorneys’ fees) incurred by Buyer in the
enforcement hereof or the preservation of Buyer’s rights hereunder.  The covenant contained in this Section 1.8
shall survive the payment and performance of the Guaranteed Obligations.

1.9           Effect of
Bankruptcy. 
In the event that, pursuant to any insolvency, bankruptcy,
reorganization, receivership or other debtor relief law, or any judgment, order
or decision thereunder, Buyer must rescind or restore any payment, or any part
thereof, received by Buyer in satisfaction of the Guaranteed Obligations, as
set forth herein, any prior release or discharge from the terms of this
Guaranty given to Guarantors by Buyer shall be without effect, and this
Guaranty shall remain in full force and effect. It is the intention of Seller
and Guarantors that Guarantors’ obligations hereunder shall not be discharged
except by Seller’s or Guarantors’ payment and performance of the Guaranteed
Obligations which is not so rescinded or Guarantors’ performance of such
obligations and then only to the extent of such performance.

1.10         Deferral of
Subrogation, Reimbursement and Contribution.  Notwithstanding anything to the contrary
contained in this Guaranty, Guarantors hereby unconditionally and irrevocably
defer until payment in full of the Guaranteed Obligations any and all rights
they may now or hereafter have under any agreement, at law or in equity
(including, without limitation, any law subrogating the Guarantors to the
rights of Buyer), to assert any claim against or seek contribution,
indemnification or any other form of reimbursement from Seller or any other
party liable for payment of any or all of the Guaranteed Obligations for any
payment made by Guarantors under or in connection with this Guaranty.

1.11         Seller.  The term “Seller” as used herein shall
include any new or successor corporation, association, partnership (general or
limited), joint venture, trust or other individual or organization formed as a
result of any merger, reorganization, sale, transfer, devise, gift or bequest
of Seller or any interest in Seller.

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ARTICLE II

EVENTS AND
CIRCUMSTANCES NOT REDUCING

OR DISCHARGING GUARANTORS’ OBLIGATIONS

Guarantors
hereby consent and agree to each of the following, and agree that Guarantors’
obligations under this Guaranty shall not be released, diminished, impaired,
reduced or adversely affected by any of the following, except to the extent
required by the terms hereof, and waives any common law, equitable, statutory
or other rights (including without limitation, except to the extent required by
the terms hereof, rights to notice) which Guarantors might otherwise have as a
result of or in connection with any of the following:

2.1           Modifications.  Any renewal, extension, increase,
modification, alteration or rearrangement of all or any part of the Repurchase
Agreement, the other Transaction Documents, or any other document, instrument,
contract or understanding between Seller and Buyer, or any other parties,
pertaining to the Guaranteed Obligations or any failure of Buyer to notify
Guarantors of any such action.

2.2           Adjustment.  Any adjustment, indulgence, forbearance or
compromise that might be granted or given by Buyer to Seller.

2.3           Condition of
Seller or Guarantors. 
The insolvency, bankruptcy, arrangement, adjustment, composition,
liquidation, disability, dissolution or lack of power of Seller, Guarantors or
any other party at any time liable for the payment of all or part of the
Guaranteed Obligations or any dissolution of Seller or Guarantors, or any sale,
lease or transfer of any or all of the assets of Seller or Guarantors, or any
changes in the shareholders, partners or members of Seller or Guarantors; or
any reorganization of Seller or Guarantors.

2.4           Invalidity
of Guaranteed Obligations. The invalidity, illegality or
unenforceability against Seller of all or any part of the Repurchase Agreement
or any document or agreement executed in connection with the Guaranteed
Obligations, for any reason whatsoever, including without limitation the fact
that (i) the act of creating the Guaranteed Obligations or any part thereof is ultra
vires, (ii) the officers or representatives executing the Repurchase
Agreement or the other Transaction Documents or otherwise creating the
Guaranteed Obligations acted in excess of their authority, (iii) the Seller has
valid defenses (other than payment of the Guaranteed Obligations), claims or
offsets (whether at law, in equity or by agreement) which render the Guaranteed
Obligations wholly or partially uncollectible from Seller, (iv) the creation,
performance or repayment of the Guaranteed Obligations (or the execution,
delivery and performance of any document or instrument representing part of the
Guaranteed Obligations or executed in connection with the Guaranteed
Obligations, or given to secure the repayment of the Guaranteed Obligations) is
illegal, uncollectible or unenforceable, or (v) the Repurchase Agreement, or
any of the other Transaction Documents have been forged or otherwise are
irregular or not genuine or authentic, it being agreed that Guarantors shall
remain liable hereon regardless of whether Seller or any other person be found
not liable on the Guaranteed Obligations or any part thereof for any reason.

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2.5           Release of
Obligors.  Any full or partial
release of the liability of Seller on the Guaranteed Obligations, or any part
thereof, or of any co-guarantors, or any other person or entity now or hereafter
liable, whether directly or indirectly, jointly, severally, or jointly and
severally, to pay, perform, guarantee or assure the payment of the Guaranteed
Obligations, or any part thereof, it being recognized, acknowledged and agreed
by Guarantors that Guarantors may be required to pay the Guaranteed Obligations
in full without assistance or support of any other party, and Guarantors have
not been induced to enter into this Guaranty on the basis of a contemplation,
belief, understanding or agreement, as between Buyer and Guarantors, that other
parties will be liable to pay or perform the Guaranteed Obligations, or that
Buyer will look to other parties to pay or perform the obligations of Seller
under the Repurchase Agreement or the other Transaction Documents.

2.6           Other
Collateral. 
The taking or accepting of any other security, collateral or guaranty,
or other assurance of payment, for all or any part of the Guaranteed
Obligations.

2.7           Release of
Collateral. 
Any release, surrender, exchange, subordination, deterioration, waste,
loss or impairment (including without limitation negligent, willful,
unreasonable or unjustifiable impairment) by any party other than Buyer of any
collateral, property or security at any time existing in connection with, or
assuring or securing payment of, all or any part of the Guaranteed Obligations.

2.8           Care and
Diligence.  Except to the
extent the same shall result from the gross negligence, willful misconduct,
illegal acts or fraud of Buyer, the failure of Buyer or any other party to
exercise diligence or reasonable care in the preservation, protection,
enforcement, sale or other handling or treatment of all or any part of such
collateral, property or security, including but not limited to any neglect,
delay, omission, failure or refusal of Buyer (i) to take or prosecute any
action for the collection of any of the Guaranteed Obligations or (ii) to
foreclose, or initiate any action to foreclose, or, once commenced, prosecute
to completion any action to foreclose upon any security therefor, or (iii) to
take or prosecute any action in connection with any instrument or agreement
evidencing or securing all or any part of the Guaranteed Obligations.

2.9           Unenforceability.  The fact that any collateral, security,
security interest or lien contemplated or intended to be given, created or
granted as security for the repayment of the Guaranteed Obligations, or any
part thereof, shall not be properly perfected or created, or shall prove to be
unenforceable or subordinate to any other security interest or lien, it being
recognized and agreed as between Buyer and Guarantors by Guarantors that
Guarantors are not entering into this Guaranty in reliance on, or in
contemplation of the benefits of, the validity, enforceability, collectibility
or value of any of the collateral for the Guaranteed Obligations.

2.10         Offset.      The liabilities and obligations of the
Guarantors to Buyer hereunder shall not be reduced, discharged or released
because of or by reason of any existing or future right of offset, claim or
defense (other than payment of the Guaranteed Obligations) of Seller against
Buyer, or any other party, or against payment of the Guaranteed Obligations,

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whether
such right of offset, claim or defense arises in connection with the Guaranteed
Obligations (or the transactions creating the Guaranteed Obligations).

2.11         Merger.  The reorganization, merger or consolidation
of Seller into or with any other corporation or entity.

2.12         Preference.  Any payment by Seller to Buyer is held to
constitute a preference under bankruptcy laws, or for any reason Buyer is
required to refund such payment or pay such amount to Seller or someone else.

2.13         Other
Actions Taken or Omitted. 
Except to the extent the same shall result from the gross negligence,
willful misconduct, illegal acts or fraud of Buyer, any other action taken or
omitted to be taken with respect to the Transaction Documents, the Guaranteed
Obligations, or the security and collateral therefor, whether or not such
action or omission prejudices Guarantors or increases the likelihood that
Guarantors will be required to pay the Guaranteed Obligations pursuant to the
terms hereof, it is the unambiguous and unequivocal intention of Guarantors
that Guarantors shall be obligated to pay the Guaranteed Obligations when due,
notwithstanding any occurrence, circumstance, event, action, or omission
whatsoever, whether contemplated or uncontemplated, and whether or not
otherwise or particularly described herein, which obligation shall be deemed
satisfied only upon the full and final payment and satisfaction of the
Guaranteed Obligations.

ARTICLE III

REPRESENTATIONS
AND WARRANTIES

To
induce Buyer to enter into the Transaction Documents, each Guarantor represents
and warrants to Buyer as follows:

3.1           Benefit.  Guarantor has received, or will receive,
indirect benefit from the execution, delivery and performance by Seller of the
Transaction Documents, and the transactions contemplated therein.

3.2           Familiarity
and Reliance. 
Guarantor is familiar with, and has independently reviewed books and
records regarding, the financial condition of Seller and is familiar with the
value of any and all collateral intended to be created as security for the
payment of the Guaranteed Obligations; however, as between Buyer and Guarantor,
Guarantor is not relying on such financial condition or the collateral as an
inducement to enter into this Guaranty.

3.3           No
Representation By Buyer. 
Neither Buyer nor any other party on Buyer’s behalf has made any
representation, warranty or statement to Guarantor in order to induce the
Guarantor to execute this Guaranty.

3.4           Guarantor’s
Financial Condition. 
As of the date hereof, and after giving effect to this Guaranty and the
contingent obligation evidenced hereby, Guarantor is, and will

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be,
solvent, and has and will have assets which, fairly valued, exceed its
obligations, liabilities (including contingent liabilities fairly estimated)
and debts, and has and will have property and assets sufficient to satisfy and
repay its obligations and liabilities, as and when the same become due.

3.5           Legality.  The execution, delivery and performance by
Guarantor of this Guaranty and the consummation of the transactions
contemplated hereunder do not, and will not, contravene or conflict with any
law, statute or regulation whatsoever to which Guarantor is subject or
constitute a default (or an event which with notice or lapse of time or both
would constitute a default) under, or result in the breach of, any material
indenture, mortgage, deed of trust, charge, lien, or any material contract,
agreement or other instrument to which Guarantor is a party or which may be
applicable to Guarantor.  This Guaranty
is a legal and binding obligation of Guarantor and is enforceable in accordance
with its terms, except as limited by bankruptcy, insolvency or other laws of
general application relating to the enforcement of creditors’ rights and
subject, as to enforceability, to general principals of equity, regardless
whether enforcement is sought in a proceeding in equity or at law.

3.6           Survival.  All representations and warranties made by
Guarantor herein shall survive until payment in full of the Guaranteed
Obligations.

3.7           Organization.  Guarantor has been duly organized or formed
and is validly existing and in good standing with requisite corporate power and
authority to own its properties and to transact the businesses in which it is
now engaged.  Guarantor is duly qualified
to do business and is in good standing in each jurisdiction where it is
required to be so qualified in connection with its properties, businesses and
operations except where the failure to do same would not reasonably be expected
to have a material adverse effect thereon. 
Guarantor possesses all rights, licenses, permits and authorizations,
governmental or otherwise, necessary to entitle it to own its properties and to
transact the businesses in which it is now engaged, except where the failure to
do same would not reasonably be expected to have a material adverse effect
thereon.

ARTICLE IV

COVENANTS OF
GUARANTOR

Each
Guarantor covenants and agrees with Buyer that, until payment in full of all
Guaranteed Obligations:

4.1           Financial
Statements, Reports, etc. 
Parent shall deliver (or cause to be delivered) to Buyer:

(a)           as
soon as available and in any event within fifty-five (55) days after the end of
each of the first three quarterly fiscal periods of each fiscal year of
Guarantor, the unaudited, consolidated balance sheets of Guarantor, which shall
incorporate its consolidated subsidiaries, as at the end of such period and the
related unaudited, consolidated statements of income and retained earnings and
of cash flows for Guarantor, which shall incorporate its consolidated
Subsidiaries, for such period and the

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portion of the fiscal year through the end of such period, accompanied
by an Officer’s Certificate of Guarantor, which certificate shall state that
said consolidated financial statements fairly present the consolidated
financial condition and results of operations Guarantor and its consolidated
Subsidiaries in accordance with GAAP, consistently applied, as at the end of,
and for, such period (subject to normal year-end audit adjustments);

(b)           as
soon as available and in any event within one hundred (100) days after the end
of each fiscal year of each Guarantor, the consolidated balance sheet of the
Guarantor, which shall incorporate its respective consolidated Subsidiaries, if
any, as at the end of such fiscal year and the related consolidated statements
of income and retained earnings and of cash flows for Guarantor, which shall
incorporate its consolidated Subsidiaries, for such year, accompanied by an
opinion thereon of independent certified public accountants of recognized
national standing, which opinion shall not be qualified as to scope of audit or
going concern and shall state that said consolidated financial statements
fairly present the consolidated financial condition and results of operations
of Guarantor and its consolidated Subsidiaries as at the end of, and for, such
fiscal year in accordance with GAAP; and

(c)           within
ten (10) Business Days after Buyer’s request, such further information with
respect to the financial affairs of the Guarantor as may be requested by Buyer.

4.2           Litigation.  Guarantor will promptly, and in any event
within ten (10) days after service of process on any of the following, give to
Buyer notice of all litigation, actions, suits, arbitrations, investigations
(including, without limitation, any of the foregoing which are pending or
threatened) or other legal or arbitrable proceedings affecting Guarantor or any
of its Subsidiaries before any Governmental Authority that (i) questions
or challenges the validity or enforceability of the Guaranty or any action to
be taken in connection with the transactions contemplated hereby, (ii) makes
a claim or claims against Guarantor in an aggregate amount greater than
$10,000,000, or (iii) which, individually or in the aggregate, if
adversely determined could be reasonably likely to have a Material Adverse
Effect.

4.3           Existence,
etc.  Guarantor will:

(a)           preserve
and maintain its legal existence and all of its material rights, privileges,
licenses and franchises;

(b)           comply
with the requirements of all applicable laws, rules, regulations and orders of
Governmental Authorities (including, without limitation, all environmental
laws) if failure to comply with such requirements would be reasonably likely
(either individually or in the aggregate) to have a Material Adverse Effect;

(c)           keep
adequate records and books of account, in which complete entries will be made
in accordance with GAAP consistently applied;

(d)           not
change its jurisdiction of organization unless it shall have provided Buyer ten
(10) days’ prior written notice of such change;

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(e)           pay
and discharge all taxes, assessments and governmental charges or levies imposed
on it or on its income or profits or on any of its property prior to the date
on which penalties attach thereto, except for any such tax, assessment, charge
or levy the payment of which is being contested in good faith and by proper
proceedings and against which adequate reserves are being maintained; and

(f)            permit
representatives of Buyer, during normal business hours, to examine, copy and
make extracts from its books and records, to inspect any of its properties, and
to discuss its business and affairs with its officers, all to the extent
reasonably requested by Buyer.

4.4           Prohibition
of Fundamental Changes. 
Guarantor shall not enter into any transaction of merger or
consolidation or amalgamation, or liquidate, wind up or dissolve itself (or
suffer any liquidation, winding up or dissolution) or sell all or substantially
all of its assets; provided, that Guarantor may enter into a merger or
consolidation if (a) the surviving or resulting entity shall be a
corporation or partnership organized under the laws of the United States or any
state thereof; and (b) such entity shall expressly assume by written
agreement, in form and substance satisfactory to Buyer in Buyer’s sole
discretion, the performance of all of the duties and obligations under this
Guaranty; and, provided, further, that if after giving effect thereto, no
Default or Event of Default would exist.

4.5           Notices.  Guarantor shall give notice to Buyer promptly
upon Guarantor’s receipt of notice or knowledge of the occurrence of any
Default or Event of Default.

4.6           Limitation on Distributions.  Parent shall not declare or make any payment
on account of, or set apart assets for, a sinking or other analogous fund for
the purchase, redemption, defeasance, retirement or other acquisition of any
equity or partnership interest of Parent , whether now or hereafter
outstanding, or make any other distribution in respect thereof, either directly
or indirectly, whether in cash or property or in obligations of Parent ,
except, so long as no Default, Event of Default, Margin Deficit or breach of
any of the financial covenants set forth in Section 4.7 below shall have
occurred and be continuing, Parent may make (i) such payments solely to the
extent necessary to preserve its status as a REIT, (ii) quarterly dividend
distributions in an amount up to 100% of its Funds From Operation for the
immediately preceding fiscal quarter and
(iii) an annual dividend distribution, so long as the total amount thereof,
when combined with the previous four (4) quarterly dividend distributions
described herein does not exceed an amount equal to one hundred percent (100%)
of Parent’s consolidated Funds From Operation for the immediately preceding
four (4) fiscal quarters, (iv) Special Dividend Distributions and (v) cash
distributions to its shareholders to the extent necessary to (A) avoid the
payment by Parent of taxes imposed under Sections 857(b)(1) and 4981 of the
Code and (B) allow its shareholders to pay any taxes imposed on them under
Sections 857(b)(3), (4), (5), (6) or (7) of the Code.  Notwithstanding the foregoing restrictions,
nothing in this Section 4.6 shall limit the ability of Parent to effect a buy
back of its Capital Stock pursuant to Section 4.10 to the extent permitted
therein. The term “Funds From Operation” as used herein shall mean, for a given
period, (a) Net Income of the Parent and its Subsidiaries for such period
(before extraordinary and non-recurring items), minus (or plus) (b) gains (or
losses) from debt restructuring and sales of property during such period,

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plus (c) depreciation and
amortization of real and personal property assets for such period, plus (d)
without duplication, income from unconsolidated partnerships and joint
ventures, determined in each case in accordance with GAAP.

4.7           Financial
Covenants.  Guarantor covenants
and agrees that:

(a)           as
of the fiscal quarter most recently ended, (i) the Interest Coverage Ratio
shall equal to exceeds 1.35 to 1.00, (ii) the Consolidated Leverage Ratio shall
not exceed 0.90 to 1.00, (iii) the Total Liabilities Ratio shall not exceed
0.85 to 1.00, (iv) the Fixed Charge Coverage Ratio shall equal or exceed 1.25
to 1.00 and (v) the Guarantor’s Tangible Net Worth is equal to or greater than
the sum of (i) $400,000,000 and (ii) 75% of the net proceeds from the issuance
by any Guarantor or any Subsidiary thereof of any capital stock of any class
(whether in a public offering or a private placement) subsequent to the date of
this Agreement; and

(b)           at
all times (i) the Net Income of the Guarantor (calculated on a consolidated
basis) shall be a positive amount, (ii) the Liquidity of the Guarantor
(calculated on a consolidated basis) shall not be less than $15,000,000, and
(iii) no Guarantor shall incur any Indebtedness in excess of the Maximum
Guarantor Debt Amount.

(c)           Within
forty-five (45)(1) days of the end of any fiscal quarter, Parent shall deliver
to Buyer a Financial Covenant Compliance Certificate setting forth the
calculation of each of the financial covenants set forth in Section 4.7(a)
and (b) above.

4.8           Voluntary or
Collusive Filing. 
Guarantor shall not voluntarily file a case, or join or collude with any
Person in the filing of an involuntary case, in respect of the Seller under the
Bankruptcy Code.

4.9           Hedging
Transactions. 
Each Guarantor that is from time to time party to a Hedging Transaction
related to any Purchased Loan shall make, or cause to be made, all payments
from time to time due and payable [by][from] such Guarantor under such Hedging
Transaction directly into the Blocked Account.

4.10         Internalization
of Management.  Parent
shall not internalize the management of Parent
without the prior written consent of the Buyer; provided,
however, that such consent shall be
granted by Buyer so long as (i) no Margin Deficit, Default or Event of Default
exists under the Repurchase Agreement, (ii) Seller shall, at the time of such
internalization, and Parent
shall cause Seller to continue after such internalization, to meet all
covenants, conditions, representations and warranties, whether financial or
otherwise, as set forth in any of the Transaction Documents and (iii) Parent
shall deliver to the Buyer a fairness opinion, in form and substance acceptable
to the Buyer, provided by a nationally recognized expert in the related field
acceptable to the Buyer.

4.11         Buy Back of
Capital Stock.  No Guarantor shall be permitted to buy
back any of its Capital Stock while this Guarantee remains in effect unless (1)
no Margin Deficit,

(1) Conforming change to MRA.

 11
 

Default
or Event of Default exists under the Agreement and (2) Sellers and each
Guarantor shall continuously (and immediately thereafter) meet all covenants,
conditions, representations and warranties, whether financial or otherwise, as
set forth in any of the Transaction Documents.

ARTICLE V

SUBORDINATION OF
CERTAIN INDEBTEDNESS

5.1           Subordination
of All Guarantor Claims. 
As used herein, the term “Guarantor Claims” shall mean all debts
and liabilities of Seller to Guarantors arising as the consequence of this
Guaranty or the payment or other performance by Guarantors hereunder, whether
such debts and liabilities now exist or are hereafter incurred or arise, or
whether the obligations of Seller thereon be direct, contingent, primary,
secondary, several, joint and several, or otherwise, and irrespective of
whether such debts or liabilities be evidenced by note, contract, open account,
or otherwise, and irrespective of the person or persons in whose favor such
debts or liabilities may, at their inception, have been, or may hereafter be created,
or the manner in which they have been or may hereafter be acquired by
Guarantors.  The Guarantor Claims shall
include without limitation all rights and claims of Guarantors against Seller
(arising as a result of subrogation or otherwise) as a result of Guarantors’
payment of all or a portion of the Guaranteed Obligations.  Upon the occurrence and during the
continuance of an Event of Default, Guarantor shall not receive or collect,
directly or indirectly, from Seller or any other party any amount upon the
Guarantor Claims until payment in full of the Guaranteed Obligations.

5.2           Claims in
Bankruptcy. 
In the event of receivership, bankruptcy, reorganization, arrangement,
debtor’s relief, or other insolvency proceedings involving Seller as debtor,
Buyer shall have the right to prove its claim in any such proceeding so as to
establish its rights hereunder and receive directly from the receiver, trustee
or other court custodian dividends and payments which would otherwise be
payable upon Guarantor Claims.  Guarantors
hereby assign such dividends and payments to Buyer.  Should Buyer receive, for application upon
the Guaranteed Obligations, any such dividend or payment which is otherwise
payable to Guarantors, and which, as between Seller and Guarantors, shall
constitute a credit upon the Guarantor Claims, then upon payment to Buyer in
full of the Guaranteed Obligations, Guarantors shall become subrogated to the
rights of Buyer to the extent that such payments to Buyer on the Guarantor
Claims have contributed toward the liquidation of the Guaranteed Obligations,
and such subrogation shall be with respect to that proportion of the Guaranteed
Obligations which would have been unpaid if Buyer had not received dividends or
payments upon the Guarantor Claims.

5.3           Payments
Held in Trust. 
In the event that, notwithstanding anything to the contrary in this
Guaranty, Guarantors should receive any funds, payment, claim or distribution
which is prohibited by this Guaranty, Guarantors agree to hold in trust for
Buyer an amount equal to the amount of all funds, payments,

 12
 

claims
or distributions so received, and agree that they shall have absolutely no
dominion over the amount of such funds, payments, claims or distributions so
received except to pay them promptly to Buyer, and Guarantors covenant promptly
to pay the same to Buyer.

5.4           Liens
Subordinate. 
Guarantors agree that any liens, security interests, judgment liens,
charges or other encumbrances upon Seller’s assets securing payment of the
Guarantor Claims shall be and remain inferior and subordinate to any liens,
security interests, judgment liens, charges or other encumbrances upon Seller’s
assets securing payment of the Guaranteed Obligations, regardless of whether
such encumbrances in favor of Guarantors or Buyer presently exist or are
hereafter created or attach.  Without the
prior written consent of Buyer, Guarantors shall not (i) exercise or enforce
any creditor’s right they may have against Seller, or (ii) foreclose,
repossess, sequester or otherwise take steps or institute any action or
proceedings (judicial or otherwise, including without limitation the
commencement of, or joinder in, any liquidation, bankruptcy, rearrangement,
debtor’s relief or insolvency proceeding) to enforce any liens, mortgage, deeds
of trust, security interests, collateral rights, judgments or other
encumbrances on assets of Seller securing payment of the Guarantor Claims held
by Guarantors.

ARTICLE VI

MISCELLANEOUS

6.1           Waiver.  No failure to exercise, and no delay in
exercising, on the part of Buyer, any right hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise thereof preclude any other or
further exercise thereof or the exercise of any other right.  The rights of Buyer hereunder shall be in
addition to all other rights provided by law. 
No modification or waiver of any provision of this Guaranty, nor consent
to departure therefrom, shall be effective unless in writing and no such
consent or waiver shall extend beyond the particular case and purpose involved.  No notice or demand given in any case shall
constitute a waiver of the right to take other action in the same, similar or
other instances without such notice or demand (except to the extent such a
notice or demand is required by the terms hereof).

6.2           Notices.  All notices, consents, approvals and requests
required or permitted hereunder shall be given in writing and shall be
effective for all purposes if hand delivered or sent by (a) hand delivery, with
proof of attempted delivery, (b) certified or registered United States mail,
postage prepaid, (c) expedited prepaid delivery service, either commercial or
United States Postal Service, with proof of attempted delivery, or (d) by
telecopier (with answerback acknowledged); provided that such telecopied notice
must also be delivered by one of the means set forth in (a), (b) or (c),
addressed as follows (or at such other address and person as shall be
designated from time to time by any party hereto, as the case may be, in a
written notice to the other parties hereto in the manner provided for in this Section 6.2):

	
  If to Guarantors:

  	
   

  	
  Gramercy Capital Group

  
	
   

  	
   

  	
  c/o SL Green
  Realty Corp.

  
	
   

  	
   

  	
  420 Lexington
  Avenue

  

 

 13
 

 

	
  

  	
   

  	
  New York, NY
  10170

  
	
   

  	
   

  	
  Attn: Hugh F.
  Hall

  
	
   

  	
   

  	
  Chief Operating
  Officer

  
	
   

  	
   

  	
  Telephone: (212)
  297-1713

  
	
   

  	
   

  	
  Telecopier:
  (212) 297-1090

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  GKK Capital LP

  
	
   

  	
   

  	
  c/o SL Green
  Realty Corp.

  
	
   

  	
   

  	
  420 Lexington
  Avenue

  
	
   

  	
   

  	
  New York, NY
  10170

  
	
   

  	
   

  	
  Attn:

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Gramercy Investment Trust

  
	
   

  	
   

  	
  c/o SL Green
  Realty Corp.

  
	
   

  	
   

  	
  420 Lexington
  Avenue

  
	
   

  	
   

  	
  New York, NY
  10170

  
	
   

  	
   

  	
  Attn:

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  GKK Trading Warehouse

  
	
   

  	
   

  	
  c/o SL Green
  Realty Corp.

  
	
   

  	
   

  	
  420 Lexington
  Avenue

  
	
   

  	
   

  	
  New York, NY
  10170

  
	
   

  	
   

  	
  Attn:

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Dechert LLP

  
	
   

  	
   

  	
  4000 Bell
  Atlantic Tower

  
	
   

  	
   

  	
  171 Arch Street

  
	
   

  	
   

  	
  Philadelphia, PA
  19103-2793

  
	
   

  	
   

  	
  Attention:
  Richard D. Jones, Esq.

  
	
   

  	
   

  	
  Telephone: (212)
  994-2501

  
	
   

  	
   

  	
  Telecopier:
  (212) 655-2501

  
	
   

  	
   

  	
   

  
	
  If to Buyer:

  	
   

  	
  Goldman Sachs Mortgage Company

  
	
   

  	
   

  	
  85 Broad Street

  
	
   

  	
   

  	
  New York, New
  York 10004

  
	
   

  	
   

  	
  Attention: Marc
  Flamino

  
	
   

  	
   

  	
  Facsimile No.:
  (212) 902-1691

  
	
   

  	
   

  	
   

  
	
  With copies to:

  	
   

  	
  Cleary Gottlieb Steen & Hamilton LLP

  
	
   

  	
   

  	
  One Liberty
  Plaza

  
	
   

  	
   

  	
  New York, New
  York 10006

  
	
   

  	
   

  	
  Attention:
  Kimberly Brown Blacklow, Esq.

  
	
   

  	
   

  	
  Facsimile No.:
  (212) 225-3999

  

 

A
notice shall be deemed to have been given: 
(a) in the case of hand delivery, at the time of delivery, (b) in the
case of registered or certified mail, when delivered or the first attempted
delivery on a Business Day, (c) in the case of expedited prepaid delivery
upon the first

 14
 

attempted
delivery on a Business Day; or (d) in the case telecopier, upon receipt of
answerback confirmation; provided that such telecopied notice was also
delivered as required in this Section 6.2.  A party receiving a notice that does not
comply with the technical requirements for notice under this Section 6.2
may elect to waive any deficiencies and treat the notice as having been
properly given.

6.3           Governing
Law.  This Guaranty shall
be governed by New York law.

6.4           SUBMISSION
TO JURISDICTION; WAIVERS. 
SELLER HEREBY IRREVOCABLY AND UNCONDITIONALLY:

(a)           SUBMITS FOR
ITSELF AND ITS PROPERTY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS
GUARANTY, OR FOR RECOGNITION AND ENFORCEMENT OF ANY JUDGMENT IN RESPECT
THEREOF, TO THE EXCLUSIVE GENERAL JURISDICTION OF THE COURTS OF THE STATE OF
NEW YORK, THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN
DISTRICT OF NEW YORK, AND APPELLATE COURTS FROM ANY THEREOF;

(b)           CONSENTS
THAT ANY SUCH ACTION OR PROCEEDING MAY BE BROUGHT IN SUCH COURTS AND, TO THE
EXTENT PERMITTED BY LAW, WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE
TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH
ACTION OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT COURT AND AGREES NOT TO
PLEAD OR CLAIM THE SAME;

(c)           AGREES THAT
SERVICE OF PROCESS IN ANY SUCH ACTION OR PROCEEDING MAY BE EFFECTED BY MAILING
A COPY THEREOF BY REGISTERED OR CERTIFIED MAIL (OR ANY SUBSTANTIALLY SIMILAR
FORM OF MAIL), POSTAGE PREPAID, TO ITS ADDRESS SET FORTH HEREIN OR AT SUCH
OTHER ADDRESS OF WHICH BUYER SHALL HAVE BEEN NOTIFIED; AND

(d)           AGREES THAT
NOTHING HEREIN SHALL AFFECT THE RIGHT TO EFFECT SERVICE OF PROCESS IN ANY OTHER
MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT TO SUE IN ANY OTHER
JURISDICTION.

6.5           WAIVER OF
JURY TRIAL. 
EACH OF GUARANTORS AND, BY THEIR ACCEPTANCE OF THIS GUARANTY, BUYER,
HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR
RELATING TO THIS GUARANTY OR THE TRANSACTIONS CONTEMPLATED HEREBY.  THIS WAIVER OF RIGHT TO TRIAL BY JURY IS
GIVEN KNOWINGLY AND VOLUNTARILY, AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH
INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD
OTHERWISE ACCRUE.  ANY PARTY IS HEREBY
AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE
EVIDENCE OF THIS WAIVER.

 15
 

6.6           Invalid
Provisions. 
If any provision of this Guaranty is held to be illegal, invalid, or
unenforceable under present or future laws effective during the term of this
Guaranty, such provision shall be fully severable and this Guaranty shall be
construed and enforced as if such illegal, invalid or unenforceable provision had
never comprised a part of this Guaranty, and the remaining provisions of this
Guaranty shall remain in full force and effect and shall not be affected by the
illegal, invalid or unenforceable provision or by its severance from this
Guaranty, unless such continued effectiveness of this Guaranty, as modified,
would be contrary to the basic understandings and intentions of the parties as
expressed herein.

6.7           Amendments.  This Guaranty may be amended only by an
instrument in writing executed by Guarantors and Buyer.

6.8           Parties
Bound; Assignment; Joint and Several.  This Guaranty shall be binding upon and inure
to the benefit of the parties hereto and their respective successors, assigns
and legal representatives; provided, however, that Guarantors may not, without
the prior written consent of Buyer, assign any of their rights, powers, duties
or obligations hereunder.  The
obligations and liabilities of each Guarantor shall be joint and several.

6.9           Headings.  Section headings are for convenience of
reference only and shall in no way affect the interpretation of this Guaranty.

6.10         Recitals.  The recital and introductory paragraphs
hereof are a part hereof, form a basis for this Guaranty and shall be
considered prima  facie evidence of the facts and documents referred
to therein.

6.11         Counterparts.  This Guaranty may be executed in any number
of counterparts, all of which taken together shall constitute one and the same
instrument, and any of the parties hereto may execute this Repurchase Agreement
by signing any such counterpart.

6.12         Rights and
Remedies.  If Guarantors
become liable for any indebtedness owing by Seller to Buyer, by endorsement or
otherwise, other than under this Guaranty, such liability shall not be in any
manner impaired or affected hereby and the rights of Buyer hereunder shall be
cumulative of any and all other rights that Buyer may ever have against
Guarantors.  The exercise by Buyer of any
right or remedy hereunder or under any other instrument, or at law or in
equity, shall not preclude the concurrent or subsequent exercise of any other
right or remedy.

6.13         Other
Defined Terms. 
Any capitalized term utilized herein shall have the meaning as specified
in the Repurchase Agreement, unless such term is otherwise specifically defined
herein.

6.14         Entirety.  This Guaranty embodies the final, entire
agreement of Guarantors and Buyer with respect to Guarantors’ Guaranty of the
Guaranteed Obligations and supersedes any and all prior commitments,
agreements, representations, and understandings, whether written or oral,
relating to the subject matter hereof. 
This Guaranty is intended by Guarantors and Buyer as a final and
complete expression of the terms of the Guaranty, and no

 16
 

course
of dealing between Guarantors and Buyer, no course of performance, no trade
practices, and no evidence of prior, contemporaneous or subsequent oral
agreements or discussions or other extrinsic evidence of any nature shall be
used to contradict, vary, supplement or modify any term of this Guaranty.  There are no oral agreements between
Guarantors and Buyer relating to the subject matter hereof.

[SIGNATURE
ON NEXT PAGE]

 17

EXECUTED as of the
day and year first above written.

	
  

  	
  GRAMERCY CAPITAL CORP.,

  
	
   

  	
  a Maryland corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Hugh Hall

  
	
   

  	
   

  	
  Its: Chief Operating
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GKK CAPITAL, L.P.,

  
	
   

  	
  a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Its:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GRAMERCY INVESTMENT TRUST,

  
	
   

  	
  a Maryland real estate investment trust

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Its:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GKK TRADING CORP.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Its:Exhibit
10.4

Execution
Copy

FIRST
AMENDMENT TO THIRD AMENDED AND RESTATED

MASTER REPURCHASE AGREEMENT

FIRST AMENDMENT TO THIRD AMENDED AND RESTATED MASTER
REPURCHASE AGREEMENT, dated as of June 28, 2007 (this “Amendment”), by
and among WACHOVIA BANK, NATIONAL ASSOCIATION (“Wachovia”), in its
capacities as Buyer and Agent, WACHOVIA CAPITAL MARKETS, LLC (“WCM”) as
Sole Lead Arranger, GRAMERCY WAREHOUSE FUNDING I LLC (“GWF-I”), GKK
TRADING WAREHOUSE I LLC (“GKK Trading”) and GKK 450 LEX LLC (“GKK 450”,
together with GWF-I and GKK Trading, collectively, the “Sellers”, and
each a “Seller”), amends that certain Third Amended and Restated Master
Repurchase Agreement, dated as of October 13, 2006 (the “Repurchase  Agreement”),
by and between Wachovia, WCM and the Sellers and other parties named therein or
referred to thereby. Capitalized terms used but not otherwise defined herein
shall have the meanings given to them in the Repurchase Agreement (as defined
below).

RECITALS

Sellers, Wachovia and WCM are parties to that certain
Third Amended and Restated Master Repurchase Agreement, dated October 16, 2006
(the “Repurchase Agreement”).

Sellers, Wachovia and WCM have agreed to amend the
Repurchase Agreement in order to (i) increase the maximum number of permitted
Letters of Credit from three (3) to five (5), and (ii) increase the maximum
aggregate permitted face amount of all outstanding Letters of Credit from
$30,000,000 to $50,000,000.

Therefore, in consideration of the premises and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Sellers, Wachovia and WCM hereby agree as follows:

SECTION 1. Amendments.

The Repurchase Agreement is hereby modified as
follows:

(a)           The
fifth line of Section 3.07(a) is hereby modified to delete the number “$30,000,000”
and replace it with the number “$50,000,000”.

(b)           Clause
(vi) of Section 3.07 is hereby amended and restated in its entirety to
read as follows:

“(vi) If there are
five (5) Letters of Credit outstanding under the Agreement; or”

(c)           the
defined terms “Total Assets”, “Total Indebtedness” and “Total Liabilities Ratio”
are deleted in their entirety from Section 2.01.

SECTION 2.  Conditions
Precedent. This Amendment and its provisions shall become effective on the
first date on which all of the following conditions precedent shall have been
satisfied (the “Amendment Effective Date”):

(a)           On or before the Amendment Effective
Date, the Agent shall have received this Amendment, executed and delivered by a
duly authorized officer of each of Seller, and Wachovia.

(b)           On the Amendment Effective Date, no
Default or Event of Default shall have occurred and be continuing.

SECTION 3.  Representations
and Warranties. Seller hereby represents and warrants to Wachovia, as of
the date hereof and as of the Amendment Effective Date, that (i) Seller is in
compliance, in all material respects, with all of the terms and provisions set
forth in the Repurchase Agreement and the other Repurchase Documents on its
part to be observed or performed, (ii) no Default or Event of Default has
occurred or is continuing, (iii) Seller has no, and Seller waives all,
defenses, rights of setoff, claims, counterclaims or causes of action of any
kind or description against Wachovia arising under or in respect of the Repurchase
Agreement or any other Repurchase Document and (iv) to the best of Seller’s
knowledge, Wachovia is in full compliance with its undertakings and obligations
under the Repurchase Agreement and the other Repurchase Documents. Seller
hereby confirms and reaffirms the representations and warranties contained in
Section 8.01 of the Repurchase Agreement.

SECTION 4.  Limited
Effect. Except as expressly amended and modified by this Amendment, the
Repurchase Agreement and each of the other Repurchase Documents shall continue
to be, and shall remain, in full force and effect in accordance with their
respective terms; provided, however, that upon the Amendment
Effective Date, each reference therein and herein to the “Repurchase Documents”
shall be deemed to include, in any event, this Amendment and each reference to
the “Repurchase Agreement” in any of the Repurchase Documents shall be deemed
to be a reference to the Repurchase Agreement as amended hereby.

SECTION 5.  Counterparts.
This Amendment may be executed by each of the parties hereto on any number of
separate counterparts, each of which shall be an original and all of which
taken together shall constitute one and the same instrument. Delivery of an
executed counterpart of a signature page to this Amendment in Portable Document
Format (PDF) or by facsimile transmission shall be effective as delivery of a
manually executed original counterpart thereof.

SECTION 6.  Expenses.
Seller agrees to pay and reimburse Wachovia for all of the out-of-pocket costs
and expenses incurred by Wachovia in connection with the preparation, execution
and delivery of this Amendment, including, without limitation, the fees and
disbursements of Cadwalader, Wickersham & Taft LLP, counsel to the Agent.

SECTION 7.  GOVERNING
LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

[SIGNATURES FOLLOW]

 2

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

	
  

  	
  SELLERS

  
	
   

  	
   

  
	
   

  	
  GRAMERCY WAREHOUSE FUNDING I LLC, a

  
	
   

  	
  Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  GRAMERCY INVESTMENT TRUST, a Maryland

  real estate investment trust

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  GKK CAPITAL LP, a Delaware limited

  partnership, its sole member and manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  GRAMERCY CAPITAL CORP, a

  Maryland corporation, its general partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Hugh Hall

  
	
   

  	
   

  	
  Title: Chief Operating Offier

  
						

 

	
  

  	
  GKK TRADING WAREHOUSE I LLC,
  a Delaware

  limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  GKK TRADING CORP., its sole member and

  manager

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  GRAMERCY CAPITAL CORP,

  a Maryland corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Hugh Hall

  
	
   

  	
   

  	
  Title: Chief Operating Officer

  
						

 

Signature Page to First
Amendment to Third Amended and Restated

Master
Repurchase Agreement

 

	
  

  	
  GKK 450 LEX LLC,
  a Delaware limited liability

  company, as a Seller

  
	
   

  	
   

  
	
   

  	
  By:

  	
  GKK Capital LP, a Delaware limited partnership, as

  
	
   

  	
  sole member and manager

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  GRAMERCY CAPITAL CORP, a

  
	
   

  	
   

  	
  Maryland corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Hugh Hall

  
	
   

  	
   

  	
  Title: Chief Operating Officer

  
						

 

Signature Page to First
Amendment to Third Amended and Restated

Master
Repurchase Agreement

 

	
  

  	
  WACHOVIA

  
	
   

  	
   

  
	
   

  	
  WACHOVIA BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WCM

  
	
   

  	
   

  
	
   

  	
  WACHOVIA CAPITAL MARKETS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Signature Page to First
Amendment to Third Amended and Restated

Master
Repurchase Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]