exv10w4



 






EXHIBIT 10.4




October 21, 2005




Grubb & Ellis Realty Advisors, Inc.

2215 Sanders Road, Suite 400

Northbrook, Illinois 60062




          Re: Initial Public Offering



Ladies and Gentlemen:




          The undersigned officer of Grubb & Ellis Realty Advisors, Inc. (“Company”), in connection
with the initial public offering of the securities of the Company (“IPO”), hereby agrees as follows
(certain capitalized terms used herein are defined in paragraph 8 hereof):




          1. In the event that the Company fails to consummate a Business Combination within 18 months
from the effective date (“Effective Date”) of the registration statement relating to the IPO (or 24
months under the circumstances described in the prospectus relating to the IPO), the undersigned
will (i) cause the Trust Fund to be liquidated and distributed to the holders of IPO Shares and
(ii) take all reasonable actions within her power to cause the Company to liquidate as soon as
reasonably practicable. The undersigned hereby waives any and all right, title, interest or claim
of any kind in or to any distribution of the Trust Fund and any remaining net assets of the Company
as a result of such liquidation (“Claim”) and hereby waives any Claim the undersigned may have in
the future as a result of, or arising out of, any contracts or agreements with the Company and will
not seek recourse against the Trust Fund for any reason whatsoever.




          2. Neither the undersigned, any member of the family of the undersigned, nor any Affiliate of
the undersigned will be entitled to receive and will not accept any compensation for services
rendered to the Company prior to or in connection with the consummation of the Business
Combination; provided that commencing on the Effective Date, Grubb &
Ellis Company (“GBE”) shall be allowed to charge the
Company $7,500 per month, representing an allocable share of
GBE’s overhead, to compensate it for the Company’s use of
GBE’s
offices, utilities and personnel and; provided, further, that GBE
shall be entitled to be compensated with respect to a Business
Combination in accordance with the terms of the Master Agreement for
Services to be entered into on the Effective Date by the Company and
GBE. The undersigned and GBE shall also be entitled to reimbursement
from the Company for their out-of-pocket expenses incurred in
connection with seeking and consummating a Business Combination.




          3. Neither the undersigned, any member of the family of the undersigned, nor any
Affiliate of the undersigned will be entitled to receive or accept a finder’s fee or any other
compensation in the event the undersigned, any member of the family of the undersigned or any
Affiliate of the undersigned originates a Business Combination
subject to the provisions of Section 2 above.




          4. The undersigned agrees to be the Chief Financial Officer of the Company




 









 








Grubb & Ellis Realty Advisors, Inc.

October 21, 2005

Page 2



until the earlier of the consummation by the Company of a Business Combination or the liquidation of the
Company. The undersigned’s biographical information furnished to the Company and attached hereto
as Exhibit A is true and accurate in all respects, does not omit any material information with
respect to the undersigned’s background and contains all of the information required to be
disclosed pursuant to Item 401 of Regulation S-K, promulgated under the Securities Act of 1933.
The undersigned’s Questionnaire furnished to Deutsche Bank Securities Inc. and annexed as Exhibit B
hereto is true and accurate in all respects. The undersigned represents and warrants that:




     (a) she is not subject to, or a respondent in, any legal action for, any
injunction, cease-and-desist order or order or stipulation to desist or refrain from
any act or practice relating to the offering of securities in any jurisdiction;



     (b) she has never been convicted of or pleaded guilty to any crime (i) involving
any fraud or (ii) relating to any financial transaction or handling of funds of another
person, or (iii) pertaining to any dealings in any securities and she is not currently
a defendant in any such criminal proceeding; and



     (c) she has never been suspended or expelled from membership in any securities or
commodities exchange or association or had a securities or commodities license or
registration denied, suspended or revoked.



          5. The undersigned has full right and power, without violating any agreement by which she is
bound, to enter into this letter agreement and to serve as Chief Financial Officer of the Company.




          6. The undersigned authorizes any employer, financial institution, or consumer credit
reporting agency to release to the Company and its legal representatives or agents (including any
investigative search firm retained by the Company) any information they may have about the
undersigned’s background and finances (“Information”). Neither the Company nor its agents shall be
violating the undersigned’s right of privacy in any manner in requesting and obtaining the
Information and the undersigned hereby releases them from liability for any damage whatsoever in
that connection.




          7. This letter agreement shall be governed by and construed and enforced in accordance
with the laws of the State of Illinois, without giving effect to conflicts of law principles
that would result in the application of the substantive laws of another jurisdiction . The
undersigned hereby (i) agrees that any action, proceeding or claim against her arising out of or
relating in any way to this letter agreement (a “Proceeding”) shall be brought and enforced in the
courts of the State of Illinois of the United States of America for the Northern District of
Illinois, and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive, and
(ii) waives




 









 








Grubb & Ellis Realty Advisors, Inc.

October 21, 2005

Page 3



any objection to such exclusive jurisdiction and that such courts represent an inconvenient forum.




          8. As used herein, (i) a “Business Combination” shall mean an acquisition, through a purchase,
asset acquisition or other business combination, of one or more commercial real estate properties
and/or assets, including by acquisition of an operating company; (ii) “Insiders” shall mean all
officers, directors and stockholders of the Company immediately prior to the IPO; (iii) “Insider
Shares” shall mean all of the shares of Common Stock of the Company owned by an Insider prior to
the IPO; (iv) “IPO Shares” shall mean the shares of Common Stock issued in the Company’s IPO; (v)
“Affiliate” shall have the meaning ascribed to it in Rule 12b-2 of the General Rules and
Regulations under the Securities Exchange Act of 1934, as amended; and (vi) “Trust Fund” shall mean
those certain net proceeds of the offering placed in trust with a trust company, to be released
only in the event of either the consummation of a Business Combination or a liquidation of the
Company.




	 	 	 	 	 
	 

	 	Shelby E. Sherard
	 	 
	 

	 	 	 	 
	 

	 	Print Name of Insider	 	 
	 
	 	 	 	 
	 

	 	/s/ Shelby E. Sherard	 	 
	 

	 	 	 	 
	 

	 	Signature