Exhibit 4.1 and 10.2
EXECUTION VERSION
SECOND LETTER AMENDMENT
Dated as of September 30, 2008
Deutsche Bank Trust Company Americas,
       as Administrative Agent under the
       Credit Agreement referred to below
60 Wall Street
New York, New York 10005

     Re:   Grubb & Ellis Company Credit Facility

Ladies and Gentlemen:
     Reference is made to the Second Amended and Restated Credit Agreement dated
as of December 7, 2007 (as amended by that certain First Letter Amendment dated
as of August 4, 2008, the “Credit Agreement”) by and among Grubb & Ellis Company
(the “Borrower”), the guarantors named therein, Deutsche Bank Trust Company
Americas, as administrative agent (the “Administrative Agent”), the financial
institutions identified therein as lender parties (the “Lender Parties”),
Deutsche Bank Trust Company Americas, as syndication agent, and Deutsche Bank
Securities Inc., as sole book running manager and sole lead arranger.
Capitalized terms not otherwise defined herein shall have their respective
meanings set forth in the Credit Agreement.
     It is hereby agreed by you and us as follows:
     Section 1. Amendments to Credit Agreement. The Credit Agreement is, upon
the occurrence of the Amendment Effective Date (as defined in Section 3 below),
hereby amended as follows:
     (a) The definition of “Applicable Margin” set forth in Section 1.01 of the
Credit Agreement is hereby amended by deleting the pricing grid therein and
substituting the following pricing grid therefor:

                      Applicable Margin   Applicable Margin Pricing       for
Base Rate   for Eurodollar Rate Level   Debt/EBITDA Ratio   Advances   Advances
I   > 2.50:1.00   2.50%   3.50% II   ³ 1.50:1.00 but £ 2.50:1.00   2.00%   3.00%
III   < 1.50:1.00   1.50%   2.50%

     (b) The definition of “Dividend/Share Repurchase Limitation” set forth in
Section 1.01 of the Credit Agreement is hereby deleted in its entirety.
     (c) The definition of “Limited Purpose Subsidiary” is hereby amended by
(i) inserting the words “and/or owning” immediately prior to the words “and
improving” in the fifth (5th) line thereof and (ii) inserting the following
sentence at the end thereof: “As of the Second Amendment Effective Date, the
Borrower acknowledges that the Limited Purpose Subsidiaries

 

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include (i) GERA Abrams Centre LLC, (ii) GERA 6400 Shafer LLC, (iii) GERA
Danbury Corporate Center LLC, (iv) NNN 200 Galleria, LLC and (v) NNN Avallon,
LLC.”
     (d) Section 1.01 of the Credit Agreement is hereby amended by adding the
following new defined terms thereto in appropriate alphabetical order:
     “GERA Assets” means any real property owned or held by any of the GERA
Property Acquisition Subsidiaries, which includes, (i) the property located at
6400 Shafer Court, Rosemont, Illinois, (ii) the property located at 9330 LBJ
Freeway, Dallas, Texas, and (iii) the property located at 39 & 55 Old Ridgebury
Road, Danbury, Connecticut.
     “Second Amendment Effective Date” means September 30, 2008.
     (e) Section 2.01(a) of the Credit Agreement is hereby amended by
(i) deleting “the Termination Date” on the fourth (4th) line thereof and
substituting therefor “September 30, 2008, but expressly subject to the last
sentence of this Section 2.01(a),”, and (ii) inserting the following sentence at
the end thereof: “For the avoidance of doubt, notwithstanding anything to the
contrary contained herein, no Revolving Credit Advances shall be available after
September 30, 2008 until such time as the Revolving Credit Commitments have been
reduced to less than $50,000,000, at which time Revolving Credit Advances shall
be available up to the Unused Revolving Credit Commitments of the Revolving
Credit Lenders at such time.”
     (f) Section 2.01(b) of the Credit Agreement is hereby amended by
(i) deleting “the Termination Date” on the third (3rd) line thereof and
substituting therefor “September 30, 2008, but expressly subject to the last
sentence of this Section 2.01(b),”, and (ii) inserting the following sentence at
the end thereof: “For the avoidance of doubt, notwithstanding anything to the
contrary contained herein, no Swing Line Advances shall be available after
September 30, 2008 until such time as the Revolving Credit Commitments have been
reduced to less than $50,000,000, at which time Swing Line Advances shall be
available (i) in an aggregate amount not to exceed at any time outstanding the
Swing Line Bank’s Swing Line Commitment at such time and (ii) in an amount for
each such Swing Line Advance not to exceed the aggregate of the Unused Revolving
Credit Commitments of the Revolving Credit Lenders at such time.”
     (g) Section 2.01(c) of the Credit Agreement is hereby amended by
(i) deleting “60 days before the Termination Date” on the fourth (4th) line
thereof and substituting therefor “September 30, 2008, but expressly subject to
the last sentence of this Section 2.01(c),”, and (ii) inserting the following
sentence at the end thereof: “For the avoidance of doubt, notwithstanding
anything to the contrary contained herein, no Letters of Credit shall be
available after September 30, 2008 until such time as the Revolving Credit
Commitments have been reduced to less than $50,000,000, at which time Letters of
Credit shall be available in an Aggregate Available Amount (i) for all Letters
of Credit issued by the Issuing Bank not to exceed at any time the Letter of
Credit Facility at such time, (ii) for all Letters of Credit issued by the
Issuing Bank not to exceed such Issuing Bank’s Letter of Credit Commitment at
such time and (iii) for each such Letter of Credit not to exceed an amount equal
to the Unused Revolving Credit Commitments of the Revolving Credit Lenders at
such time.”
     (h) The following new subsection (iii) is hereby added to the end of
Section 2.05(b) of the Credit Agreement:
     (iii) Upon the receipt of any prepayment pursuant to Section 2.06(e), the
Revolving Credit Commitments shall be permanently reduced by one hundred percent

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(100%) of the principal amount of such prepayment; provided, however, under no
circumstances shall the Revolving Credit Commitments be reduced to less than
$50,000,000 by reason of the operation of this Section 2.05(b)(iii).
     (i) Section 2.06(e)(i) is hereby amended by (i) deleting “In the event that
the sale contemplated by Section 5.02(e)(v) is not consummated on or before
September 30, 2008, the” at the beginning thereof and substituting therefor
“The”, and (ii) inserting the words “of GERA Assets” immediately following the
word “sale” in the parenthetical on the third (3rd) line thereof.
     (j) Section 2.07(a)(1) of the Credit Agreement is hereby amended by
inserting the following sentence at the end of such Section immediately prior to
the period: “; provided, however, such rate shall never be less than the sum of
the Eurodollar Rate plus the Applicable Margin for Eurodollar Rate Advances
(assuming a one (1) month Interest Period) plus 1.00%.”
     (k) Section 5.01(s) of the Credit Agreement is hereby amended by deleting
“real property held by each Limited Purpose Subsidiary” and substituting
therefor “GERA Assets”.
     (l) Section 5.02(b) of the Credit Agreement is hereby amended by
(i) inserting “and Preferred Interests” at the end of the title of such Section
immediately prior to the period, and (ii) inserting the following immediately
after the word “Debt” and prior to the word “except”: “or create, incur, assume
or suffer to exist, or permit any of its Restricted Subsidiaries to create,
incur, assume or suffer to exist any Preferred Interests, in each case”.
     (m) Section 5.02(b)(iii)(F) of the Credit Agreement is hereby amended by
deleting “$125,000,000” and substituting therefor “$50,000,000”.
     (n) Section 5.02(b)(iii)(H) is hereby amended and restated in its entirety
to read as follows:
     “(H) other Debt subordinated to Debt incurred hereunder and/or Preferred
Interests, in each case in amounts and on terms and conditions satisfactory to
the Administrative Agent and Required Lenders;”
     (o) Section 5.02(b)(iv) of the Credit Agreement is hereby amended by
inserting “next to” immediately prior to the word “last” in the last line of
such Section.
     (p) The proviso immediately following Section 5.02(b)(v) is hereby amended
by (i) deleting the comma immediately following the reference to “(iii)(D)(y)”,
(ii) inserting the word “and” immediately following the reference to
“(iii)(D)(y)”, and (iii) deleting “and (iii)(H)” immediately following the
reference to “(iii)(E)”.
     (q) Section 5.02(g) is hereby amended by deleting the colon at the end of
the first paragraph of such Section and all text following the colon in such
Section and substituting therefor: “, any Loan Party may make Restricted
Payments to another Loan Party.”
     (r) Section 5.03(d) of the Credit Agreement is hereby amended by
(i) deleting “Upon the request of the Administrative Agent,” at the beginning of
such Section and substituting therefor “As soon as possible and in any event
within thirty (30) days after the end of each calendar month,”, (ii) inserting
the following after the word “month,” in the seventh (7th) line thereof: “and
unaudited statements of gross revenues and operating and other expenses with
respect to each

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parcel of real property owned or held by any Limited Purpose Subsidiary, in each
case in form and detail satisfactory to the Administrative Agent,”
     (s) Section 5.04(a) of the Credit Agreement is hereby amended by deleting
the table therein and substituting the following table therefor:

      Quarter Ending   Ratio
December 31, 2007
  3.75:1.00
March 31, 2008
  3.75:1.00
June 30, 2008
  3.75:1.00
September 30, 2008
  5.50:1.00
December 31, 2008
  5.50:1.00
March 31, 2009 and thereafter
  3.50:1.00

     (t) Section 5.04(b) of the Credit Agreement is hereby amended by deleting
the table therein and substituting the following table therefor:

      Quarter Ending   Ratio
December 31, 2007
  3.25:1.00
March 31, 2008
  3.25:1.00
June 30, 2008
  3.25:1.00
September 30, 2008
  3.25:1.00
December 31, 2008
  3.25:1.00
March 31, 2009
  3.25:1.00
June 30, 2009
  3.50:1.00
September 30, 2009
  3.50:1.00
December 31, 2009
  4.00:1.00
March 31, 2010
  4.00:1.00
June 30, 2010
  4.00:1.00
September 30, 2010
  4.00:1.00
December 31, 2010 and thereafter
  4.50:1.00

     (u) Section 5.04(c) of the Credit Agreement is hereby amended by deleting
the table therein and substituting the following table therefor:

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      Quarter Ending   Ratio
December 31, 2007
  2.25:1.00
March 31, 2008
  2.25:1.00
June 30, 2008
  2.25:1.00
September 30, 2008
  4.25:1.00
December 31, 2008
  4.25:1.00
March 31, 2009 and thereafter
  2.25:1.00

     (v) Section 5.04(d) of the Credit Agreement is hereby amended by deleting
“$60,000,000” and substituting therefor “$30,000,000”.
     (w) Section 5.04(f) of the Credit Agreement is hereby amended by deleting
“$25,000,000” and substituting therefor “$15,000,000”.
     (x) Schedule I (Commitments, Pro Rata Shares and Applicable Lending
Offices) to the Credit Agreement is hereby replaced with Schedule I attached
hereto.
     (y) Schedule IV to the Credit Agreement is hereby replaced with Schedule IV
attached hereto.
     Section 2. Representations and Warranties. The Borrower hereby represents
and warrants that the representations and warranties contained in each of the
Loan Documents (as amended or supplemented to date, including pursuant to this
Amendment) are true and correct on and as of the Amendment Effective Date
(defined below), before and after giving effect to this Amendment (including,
without limitation, the representation and warranty set forth in Section 4.01(o)
of the Credit Agreement, as amended by this Amendment), as though made on and as
of such date.
     Section 3. Effectiveness of Amendment. This Second Letter Amendment (this
“Amendment”) shall become effective as of the date first above written (the
“Amendment Effective Date”) solely when (i) the Administrative Agent shall have
received counterparts of this Amendment executed by the Borrower, the
Guarantors, the Administrative Agent and the Required Lenders or, as to any of
the Lender Parties, advice satisfactory to the Administrative Agent that such
Lender Party has executed this Amendment, (ii) the Administrative Agent shall
have received counterparts of the Consent attached hereto executed by the
Guarantors, (iii) the Administrative Agent shall have received payment in full
of an amendment fee equal to 0.25% of the sum of the Revolving Credit
Commitments of those Lenders that have executed and delivered to the
Administrative Agent a signature page to this Amendment, which fee shall be for
the ratable benefit of such Lenders and (iv) all fees and expenses of the
Administrative Agent (including the reasonable fees and expenses of counsel for
the Administrative Agent) due and payable on the date hereof shall have been
paid in full and in accordance with Section 5 below.
     Section 4. Ratification. The Credit Agreement, as amended hereby, and each
of the other Loan Documents are and shall continue to be in full force and
effect and are hereby in all respects ratified and confirmed. The execution,
delivery and effectiveness of this Amendment shall not operate as a waiver of
any right, power or remedy of any Lender Party or the Administrative Agent under
any of the Loan Documents, nor constitute a waiver of any provision of any of
the Loan Documents.

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     Section 5. Costs and Expenses. The Borrower agrees to pay on demand all
reasonable out-of-pocket costs and expenses of the Administrative Agent in
connection with the preparation, execution, delivery and administration,
modification and amendment of this Amendment and the other instruments and
documents to be delivered hereunder (including, without limitation, the
reasonable fees and expenses of counsel for the Administrative Agent) in
accordance with the terms of Section 9.04 of the Credit Agreement.
     Section 6. Counterparts. This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement. Delivery of an executed
counterpart of a signature page to this Amendment by telecopier shall be
effective as delivery of a manually executed counterpart of this Amendment.
     Section 7. Governing Law. This Amendment constitutes a Loan Document and
shall be governed by, and construed in accordance with, the laws of the State of
New York.
[Balance of page intentionally left blank]

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            Very truly yours,

GRUBB & ELLIS COMPANY,
as Borrower
      By   /s/ Richard w. Pehlke         Name:   Richard W. Pehlke       
Title:   Executive Vice President and Chief Financial Officer     

[SIGNATURES CONTINUE ON FOLLOWING PAGES]

 

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Agreed as of the date first above written:
DEUTSCHE BANK TRUST COMPANY AMERICAS,
as Administrative Agent, a Lender, Issuing Bank
and Swing Line Bank

         
By
  /s/ James Rolison    
 
       
 
  Name: James Rolison
Title: Managing Director    
 
       
By
  /s/ Linda Wang    
 
       
 
  Name: Linda Wang
Title: Director    

[SIGNATURES CONTINUE ON FOLLOWING PAGES]

 

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JPMORGAN CHASE BANK, N.A.,
as a Lender

         
By
  /s/ Amy S. Applebaum    
 
       
 
  Name: Amy S. Applebaum
Title: Vice President    

 

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KEYBANK NATIONAL ASSOCIATION,
as a Lender

         
By
  /s/ Jennifer L. Wells    
 
       
 
  Name: Jennifer L. Wells
Title: Vice President    

 

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FIFTH THIRD BANK,
as a Lender

         
By
  /s/ Matthew D. Rodgers    
 
       
 
  Name: Matthew D. Rodgers    
 
  Title:Vice President    

 

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CONSENT
Dated as of September 30, 2008
     Each of the undersigned, as a Guarantor under the Guaranty set forth in
Article VIII of the Second Amended and Restated Credit Agreement dated as of
December 7, 2007 (as amended by a certain First Letter Amendment dated as of
August 4, 2008), in favor of the Administrative Agent, for its benefit and the
benefit of the Lender Parties party to the Credit Agreement referred to in the
foregoing Second Letter Amendment, hereby consents to such Second Letter
Amendment and hereby confirms and agrees that notwithstanding the effectiveness
of such Second Letter Amendment, the Guaranty is, and shall continue to be, in
full force and effect and is hereby ratified and confirmed in all respects.

            GRUBB & ELLIS AFFILIATES, INC.
      By   /s/ Richard W. Pehlke         Name:   Richard W. Pehlke       
Title:   Chief Financial Officer        GRUBB & ELLIS AFFILIATES, INC.
      By   /s/ Richard W. Pehlke         Name:   Richard W. Pehlke       
Title:   Chief Financial Officer        GRUBB & ELLIS MANAGEMENT SERVICES, INC.
      By   /s/ Richard W. Pehlke         Name:   Richard W. Pehlke       
Title:   Chief Financial Officer        GRUBB & ELLIS OF ARIZONA, INC.
      By   /s/ Richard W. Pehlke         Name:   Richard W. Pehlke       
Title:   Chief Financial Officer        GRUBB & ELLIS ASSET SERVICES COMPANY
      By   /s/ Richard W. Pehlke         Name:   Richard W. Pehlke       
Title:   Chief Financial Officer     

(Signatures continued on next page)

 

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            GRUBB & ELLIS CONSULTING SERVICES COMPANY
      By   /s/ Richard W. Pehlke         Name:   Richard W. Pehlke       
Title:   Chief Financial Officer        GRUBB & ELLIS INSTITUTIONAL PROPERTIES,
INC.
      By   /s/ Richard W. Pehlke         Name:   Richard W. Pehlke       
Title:   Chief Financial Officer        GRUBB & ELLIS OF MICHIGAN, INC.
      By   /s/ Richard W. Pehlke         Name:   Richard W. Pehlke       
Title:   Chief Financial Officer        GRUBB & ELLIS MORTGAGE GROUP, INC.
      By   /s/ Richard W. Pehlke         Name:   Richard W. Pehlke       
Title:   Chief Financial Officer        GRUBB & ELLIS OF NEVADA, INC.
      By   /s/ Richard W. Pehlke         Name:   Richard W. Pehlke       
Title:   Chief Financial Officer        GRUBB & ELLIS NEW YORK, INC.
      By   /s/ Richard W. Pehlke         Name:   Richard W. Pehlke       
Title:   Chief Financial Officer     

(Signatures continued on next page)

 

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            GRUBB & ELLIS ADVISERS OF CALIFORNIA, INC.
      By   /s/ Richard W. Pehlke         Name:   Richard W. Pehlke       
Title:   Chief Financial Officer        GRUBB & ELLIS SOUTHEAST PARTNERS, INC.
      By   /s/ Richard W. Pehlke         Name:   Richard W. Pehlke       
Title:   Chief Financial Officer        HSM INC.
      By   /s/ Richard W. Pehlke         Name:   Richard W. Pehlke       
Title:   Chief Financial Officer        WM. A. WHITE/GRUBB & ELLIS INC.
      By   /s/ Richard W. Pehlke         Name:   Richard W. Pehlke       
Title:   Chief Financial Officer        LANDAUER HOSPITALITY INTERNATIONAL, INC.
      By   /s/ Richard W. Pehlke         Name:   Richard W. Pehlke       
Title:   Chief Financial Officer        LANDAUER SECURITIES, INC.
      By   /s/ Richard W. Pehlke         Name:   Richard W. Pehlke       
Title:   Chief Financial Officer     

(Signatures continued on next page)

 

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            GRUBB & ELLIS MANAGEMENT SERVICES OF MICHIGAN, INC.
      By   /s/ Richard W. Pehlke         Name:   Richard W. Pehlke       
Title:   Chief Financial Officer        GRUBB & ELLIS EUROPE, INC.
      By   /s/ Richard W. Pehlke         Name:   Richard W. Pehlke       
Title:   Chief Financial Officer        NNN REALTY ADVISORS, INC.
      By   /s/ Andrea R. Biller         Name:   Andrea Biller        Title:  
Executive Vice President        GRUBB & ELLIS REALTY INVESTORS, LLC
      By   /s/ Andrea R. Biller         Name:   Andrea Biller        Title:  
Executive Vice President        TRIPLE NET PROPERTIES REALTY INC.
      By   /s/ Jeffrey T. Hanson         Name:   Jeffrey T. Hanson       
Title:   Chief Executive Officer        GRUBB & ELLIS RESIDENTIAL MANAGEMENT
INC.
      By   /s/ Michael Rispoli         Name:   Michael Rispoli        Title:  
Chief Financial Officer   

 

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SCHEDULE I
COMMITMENTS, PRO RATA SHARES AND APPLICABLE LENDING OFFICES

                                              Revolving           Letter of    
      Domestic   Eurodollar     Credit   Revolver Pro Rata   Credit   Swing Line
  Lending   Lending Name of Lender   Commitment   Share   Commitment  
Commitment   Office   Office
Deutsche Bank Trust
  $ 20,186,773.50       30 %   $ 7,500,000.00     $ 4,000,000     60 Wall Street
  Commercial Loan
Company Americas
                                  New York, NY   Division
 
                                  10005   90 Hudson Street
 
                                      Jersey City, NJ
 
                                      07302
 
                                       
Fifth Third Bank
  $ 13,457,849.00       20 %   $ 0     $ 0     233 South Wacker,   233 South
Wacker,
 
                                  Suite 400   Suite 400
 
                                  Chicago, IL 60606   Chicago, IL 60606
 
                                       
JPMorgan Chase, N.A.
  $ 13,457,849.00       20 %   $ 0     $ 0     245 Park Avenue,   245 Park
Avenue,
 
                                  Floor 14   Floor 14
 
                                  New York, NY 10167   New York, NY 10167
 
                                       
KeyBank National
  $ 20,186,773.50       30 %   $ 0     $ 0     1200 Abernathy   1200 Abernathy
Association
                                  Road, NE   Road, NE
 
                                  Suite 1550   Suite 1550
 
                                  Atlanta, GA 30328   Atlanta, GA 30328
 
                                       
Totals
  $ 67,289,245.00       100 %   $ 7,500,000.00     $ 4,000,000          
 
                                       

 

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SCHEDULE IV

     
A.
  6400 Shafer Court
Rosemont, IL
 
   
B.
  9330 LBJ Freeway
Dallas, Texas
 
   
C.
  Danbury Corporate Center
Danbury, Connecticut
 
   
D.
  200 Galleria
200 Galleria Parkway
Atlanta, Georgia
 
   
E.
  The Avallon
10415 and 10431 Morado Circle and 10814 Jollyville Road
Austin, Texas