Document:

exv4w8

 

EXHIBIT 4.8

FIRST LETTER AMENDMENT

Dated as of June 16, 2006

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 Amended and Restated Credit Agreement dated as of April 14, 2006 (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:

     1. Amendments to Credit Agreement. (a) The following definitions set forth
in Section 1.01 of the Credit Agreement are hereby amended and restated to read as follows:

     “Acquisition” means (a) the acquisition of all or substantially all of the
assets of another Person or of a business or division of another Person, (b) the
acquisition of all or substantially all of the Equity Interests of a Person
unaffiliated with the Borrower and its Subsidiaries, (c) the establishment of a
joint venture with another Person unaffiliated with the Borrower and its
Subsidiaries or (d) the merger, consolidation or amalgamation with one or more other
Persons.

     “Consolidated Fixed Charges” means, for any date of determination, for the
Measurement Period most recently ended, the sum (without duplication) of (a)
Consolidated Interest Expense (net of Consolidated Interest Income) for such
Measurement Period, (b) cash income taxes paid by the Borrower or any of its
Restricted Subsidiaries on a Consolidated basis in respect of such Measurement
Period, (c) scheduled principal payments made during such Measurement Period on
account of principal of Debt of the Borrower or any of its Restricted Subsidiaries
(including Capitalized Lease payments), (d) the aggregate amount actually paid by
the Borrower and its Restricted Subsidiaries in cash during such Measurement Period
on account of Capital Expenditures and (e) Earnouts and other cash dividends paid or
distributed by the Borrower during such Measurement Period.

     “Debt/EBITDA Ratio” means, at any date of determination, the ratio of (a)(i)
Consolidated total Debt for Borrowed Money of the Borrower and its Restricted
Subsidiaries at such date, less (ii) all cash and Cash Equivalents of the Borrower
and its Restricted Subsidiaries at such date to the extent the same exceed the
aggregate amount, if any, required to satisfy on such date the minimum Liquidity
financial covenant set forth in Section 5.04(f), to (b) Consolidated EBITDA of the
Borrower and its Restricted Subsidiaries for the most recently completed Measurement
Period.

1

 

     “Interest Coverage Ratio” means, for any date of determination, for the
Measurement Period most recently ended, the ratio of (a) Consolidated EBITDA to
(b)(i) Consolidated Interest Expense less (ii) Consolidated Interest Income, for
such Measurement Period.

     (b) The following new definitions are hereby inserted into Section 1.01 of the Credit
Agreement in proper alphabetical order:

     “Consolidated Interest Income” means, for any date of determination, for the
Measurement Period most recently ended, the sum of all cash interest income of the
Borrower and its Restricted Subsidiaries for such Measurement Period.

     “Consolidated Net Worth” means, for any date of determination, the Consolidated
net worth on such date of the Borrower and its Restricted Subsidiaries determined in
accordance with GAAP.

     “Delayed Draw Term Advance” has the meaning specified in Section 2.01(a).

     “First Amendment Effective Date” means June 16, 2006.

     “Initial Term Advance” has the meaning specified in Section 2.01(a).

     “Limited Joint Venture” means any joint venture (a) in which the Borrower or
any of its Subsidiaries holds any Equity Interest, (b) that is not a Subsidiary of
the Borrower or any of its Subsidiaries and (c) the accounts of which would not
appear on the Consolidated financial statements of the Borrower.

     “Liquidity” means, at any date of determination, an amount equal to the same of
(a) the aggregate Unused Revolving Credit Commitments at such time with respect to
which all conditions precedent set forth in Section 3.02 remain satisfied other than
delivery of the officer’s certificate referred to therein, and (b) cash and Cash
Equivalents of the Borrower and its Restricted Subsidiaries on hand at such time.

     “New Hire Bonuses” has the meaning specified in Section 5.02(r).

     “Revolver Usage” means, with respect to any Revolving Credit Lender at any
time, without duplication, the sum of (a) the aggregate principal amount of all
Revolving Credit Advances, Swing Line Advances and Letter of Credit Advances made by
such Lender (in its capacity as a Lender) and outstanding at such time plus (b) such
Lender’s Pro Rata Share of (i) the aggregate Available Amount of all Letters of
Credit outstanding at such time, (ii) the aggregate principal amount of all Letter
of Credit Advances made by the Issuing Bank pursuant to Section 2.03(c) and
outstanding at such time and (iii) the aggregate principal amount of all Swing Line
Advances made by the Swing Line Bank pursuant to Section 2.03(b) and outstanding at
such time.

     “Special Term Loan Repayment” has the meaning set forth in Section 2.01(a).

     “Unused Term Commitment” means, with respect to any Term Lender at any time,
(a) such Lender’s Term Commitment at such time minus (b) the sum of the aggregate
principal amount of all Term Advances made by such Lender (in its capacity as a
Lender) on or prior to such date, whether or not then outstanding (exclusive,
however,

2

 

of any Term Advance repaid on the First Amendment Effective Date pursuant to
the Special Term Loan Repayment).

     (c) The definition of “Applicable Margin” set forth in Section 1.01 of the Credit
Agreement is hereby amended by adding at the end thereof the following new paragraph:

     “Notwithstanding the foregoing, the Applicable Margin shall be at Pricing Level
I from the First Amendment Effective Date through March 31, 2007.”

     (d) The definition of “Capital Expenditures” set forth in Section 1.01 of the Credit
Agreement is hereby amended by adding at the end thereof the following sentence:

     “Further, tenant improvement costs and expenses that would otherwise qualify as
Capital Expenditures shall be excluded from the definition thereof to the extent
such costs and expenses are reimbursable by the landlord.”

     (e) The definition of “Permitted Acquisition” set forth in Section 1.01 of the Credit
Agreement is hereby amended by inserting in clause (a)(ii) thereof, immediately after the
words “the Administrative Agent shall have” the words “approved such Acquisition in writing
prior to the consummation thereof and”.

     (f) Section 2.01(a) of the Credit Agreement is hereby amended and restated to read as
follows:

     “(a) The Term Advances. Pursuant to the terms of the Existing
Agreement, the Term Lenders made a single advance (the “Initial Term Advance”) to
the Borrower on the Effective Date (as defined in the Existing Agreement) in an
amount equal to the Term Lenders’ Term Commitments at such time. On the First
Amendment Effective Date, the Borrower repaid Term Advances in an aggregate
principal amount of $40,000,000 (the “Special Term Loan Repayment”) with the
proceeds of Revolving Credit Advances made on such date. The Lenders have agreed,
subject to the terms and conditions hereinafter set forth, to make advances (each
such advance, a “Delayed Draw Term Advance”, and together with the Initial Term
Advance, a “Term Advance”) to the Borrower from time to time on any Business Day
during the period from the First Amendment Effective Date until the Termination Date
in respect of the Term Facility in an amount for each such Advance not to exceed
such Lender’s Unused Term Commitment at such time. Each Term Borrowing shall be in
an aggregate amount of $1,000,000 or an integral multiple of $500,000 in excess
thereof and shall consist of Term Advances made simultaneously by the Term Lenders
ratably according to their Term Commitments. After the First Amendment Effective
Date, amounts borrowed under this Section 2.01(a) (or the corresponding section of
the Existing Agreement) and repaid or prepaid may not be reborrowed.”

     (g) Section 2.02(b)(v) is hereby amended by (i) deleting the two references therein to
“Revolving Credit Advances” and substituting therefor references to “Advances”, and (ii)
deleting the two references therein to “Revolving Credit Lender’s” and substituting therefor
references to “Lender’s”.

     (h) Section 2.08(a) of the Credit Agreement is hereby amended and restated to read as
follows:

3

 

     “(a) Unused Commitment Fees. The Borrower shall pay to the
Administrative Agent for the account of the Lenders the following unused commitment
fees, from the date hereof in the case of each Initial Lender and from the effective
date specified in the Assignment and Acceptance pursuant to which it became a Lender
in the case of each other Lender, in each case until the Termination Date, payable
in arrears quarterly on the last day of each March, June, September and December,
commencing June 30, 2006, and on the Termination Date in respect of the applicable
Facility:

     (i) (A) for each such quarter during which the average daily Revolver
Usage of all Revolving Credit Lenders is greater than or equal to
$30,000,000, an unused revolving commitment fee at the rate of 0.25% per
annum on the sum of the average daily Unused Revolving Credit Commitment of
each Appropriate Lender plus such Appropriate Lender’s Pro Rata Share of the
average daily outstanding Swing Line Advances during such quarter, and (B)
for each such quarter during which the average daily Revolver Usage of all
Revolving Credit Lenders is less than $30,000,000, an unused revolving
commitment fee at the rate of 0.50% per annum on the sum of the average
daily Unused Revolving Credit Commitment of each Appropriate Lender plus
such Appropriate Lender’s Pro Rata Share of the average daily outstanding
Swing Line Advances during such quarter;

     (ii) a term commitment fee at the rate of 0.50% per annum on the sum
of the average daily Unused Term Commitment of each Appropriate Lender
during such quarter;

     provided, however, that any revolving unused commitment fee or term unused
commitment fee accrued with respect to any of the Commitments of a Defaulting Lender
during the period prior to the time such Lender became a Defaulting Lender and
unpaid at such time shall not be payable by the Borrower so long as such Lender
shall be a Defaulting Lender except to the extent that such unused commitment fee
shall otherwise have been due and payable by the Borrower prior to such time; and
provided further that no unused commitment fee shall accrue on any of the
Commitments of a Defaulting Lender so long as such Lender shall be a Defaulting
Lender.”

     (i) Section 2.14 of the Credit Agreement is hereby amended and restated to read as
follows:

     “SECTION 2.14 Use of Proceeds. The proceeds of the Initial Term
Advance were used by the Borrower solely (i) to refinance certain Existing Debt,
(ii) to finance, from and after the date hereof, the repurchase or exchange by the
Borrower of Equity Interests and related payments permitted pursuant to Section
5.02(g)(iv), (iii) to pay transaction fees and expenses and (iv) for other general
corporate purposes. The proceeds of all Delayed Draw Term Advances shall be
available (and the Borrower agrees that it shall use such proceeds) solely for the
purpose of financing Permitted Acquisitions by the Borrower or its Restricted
Subsidiaries. The proceeds of the Revolving Credit Advances and issuances of
Letters of Credit shall be available (and the Borrower agrees that it shall use such
proceeds and Letters of Credit) solely (v) to fund the Special Term Loan Repayment,
(w) to provide working capital for the Borrower and its Restricted Subsidiaries, (x)
to finance acquisitions by the Borrower or its Restricted Subsidiaries, (y) to
finance, from and after the date hereof, the repurchase or exchange by

4

 

the Borrower of Equity Interests and related payments permitted pursuant to
Section 5.02(g)(iv) and (z) for other general corporate purposes.”

     (j) Section 5.02(f)(ix) of the Credit Agreement is hereby amended and restated to read
as follows:

     “(ix) Investments in Permitted Acquisitions, provided that Acquisitions
qualifying under clause (c) of the definition thereof and constituting Limited Joint
Ventures shall not exceed $5,000,000 in the aggregate.”

     (k) Section 5.02(f)(xi) of the Credit Agreement is hereby amended by striking the word
“and” at the end thereof. Section 5.02(f)(xii) of the Credit Agreement is hereby amended by
replacing “.” at the end thereof with “; and”. The following new Section 5.02(f)(xiii) is
hereby inserted after Section 5.02(f)(xii):

     “(xiii) Investments by the Borrower and its Restricted Subsidiaries in
warrants (trading under the ticker symbol GAV.WS) representing rights
to purchase shares of common stock of GERA in an aggregate amount not to exceed $3,500,000.”

     (l) Section 5.02(o) of the Credit Agreement is hereby amended and restated to read as
follows:

     “(o) [Intentionally omitted.]”

     (m) The following new Section 5.02(r) is hereby inserted into the Credit Agreement
immediately following Section 5.02(q):

     “(r) Maximum New Hire Bonuses. Make aggregate cash payments in any
Measurement Period of the Borrower in connection with the hiring or engagement of
officers, employees or representatives of the Borrower (“New Hire Bonuses”) in
excess of the amount set forth below for such Measurement Period unless any payments
in excess of such amount in any Measurement Period is approved in writing by the
Administrative Agent in advance of such payment:

	 	 	 	 	 
	 	 	Maximum Amount of
	Measurement Period Ending	 	New Hire Bonuses
	 
	June 30, 2006
	 	$	6,500,000	 
	 
	 	 	 	 
	September 30, 2006
	 	$	15,000,000	 
	 
	 	 	 	 
	December 31, 2006
	 	$	20,000,000	 
	 
	 	 	 	 
	March 31, 2007
	 	$	20,000,000	 
	 
	 	 	 	 
	June 30, 2007
	 	$	20,000,000	 
	 
	 	 	 	 
	September 30, 2007
	 	$	15,000,000	 
	 
	 	 	 	 
	December 31, 2007 and thereafter
	 	$	7,500,000	 

     (n) Section 5.04
of the Credit Agreement is hereby amended and restated to read as
follows:

5

 

     “SECTION 5.04 Financial
Covenants. So long as any Advance or any
other Obligation of any Loan Party under any Loan Document shall remain unpaid, any
Letter of Credit shall be outstanding or any Lender Party shall have any Commitment
hereunder, the Borrower will:

     (a) Debt/EBITDA Ratio. Maintain
at all times a Debt/EBITDA
Ratio of not more than the amount set forth below for each Measurement
Period set forth below:

	 	 	 	 	 
	Quarter Ending	 	Ratio
	 
	June 30, 2006
	 	 	3.50:1.00	 
	 
	 	 	 	 
	September 30, 2006
	 	 	3.50:1.00	 
	 
	 	 	 	 
	December 31, 2006
	 	 	3.50:1.00	 
	 
	 	 	 	 
	March 31, 2007
	 	 	3.00:1.00	 
	 
	 	 	 	 
	June 30, 2007
	 	 	3.00:1.00	 
	 
	 	 	 	 
	September 30, 2007
	 	 	3.00:1.00	 
	 
	 	 	 	 
	December 31, 2007
	 	 	3.00:1.00	 
	 
	 	 	 	 
	March 31, 2008 and thereafter
	 	 	2.50:1.00	 

     (b) Interest Coverage Ratio. Maintain at all times an
Interest Coverage Ratio of not less than the amount set forth below for each
Measurement Period set forth below:

	 	 	 	 	 
	Quarter Ending	 	Ratio
	 
	June 30, 2006
	 	 	3.50:1.00	 
	 
	 	 	 	 
	September 30, 2006
	 	 	3.50:1.00	 
	 
	 	 	 	 
	December 31, 2006
	 	 	3.50:1.00	 
	 
	 	 	 	 
	March 31, 2007
	 	 	3.75:1.00	 
	 
	 	 	 	 
	June 30, 2007
	 	 	3.75:1.00	 
	 
	 	 	 	 
	September 30, 2007
	 	 	3.75:1.00	 
	 
	 	 	 	 
	December 31, 2007
	 	 	3.75:1.00	 
	 
	 	 	 	 
	March 31, 2008 and thereafter
	 	 	4.00:1.00	 

     (c) EBITDA. Maintain
at all times EBITDA of the Borrower and
its Restricted Subsidiaries of not less than the amount set forth below for
each Measurement Period set forth below:

	 	 	 	 	 
	Quarter Ending	 	EBITDA
	 
	June 30, 2006
	 	$	8,500,000	 
	 
	 	 	 	 
	September 30, 2006
	 	$	8,500,000	 

6

 

	 	 	 	 	 
	December 31, 2006
	 	$	10,000,000	 
	 
	 	 	 	 
	March 31, 2007
	 	$	15,000,000	 
	 
	 	 	 	 
	June 30, 2007
	 	$	17,500,000	 
	 
	 	 	 	 
	September 30, 2007
	 	$	17,500,000	 
	 
	 	 	 	 
	December 31, 2007
	 	$	19,000,000	 
	 
	 	 	 	 
	March 31, 2008
	 	$	19,000,000	 
	 
	 	 	 	 
	June 30, 2008
	 	$	19,000,000	 
	 
	 	 	 	 
	September 30, 2008
	 	$	19,000,000	 
	 
	 	 	 	 
	December 31, 2008 and thereafter
	 	$	22,000,000	 

     (d) Fixed Charge
Coverage Ratio. Maintain at all times a
Consolidated Fixed Charge Coverage Ratio of not less than the ratio set
forth below for each Measurement Period set forth below:

	 	 	 
	Quarter Ending	 	Ratio
	 
	June 30, 2006

	 	1.25:1.00
	 
	 	 
	September 30, 2006

	 	1.00:1.00
	 
	 	 
	December 31, 2006

	 	1.00:1.00
	 
	 	 
	March 31, 2007 and thereafter

	 	1.25:1.00

     (e) Minimum Net
Worth. Commencing with the Measurement Period
ending March 31, 2007, maintain at all times a Consolidated Net Worth of not
less than the sum of $10,000,000 plus 50% of the sum of (i) the net proceeds
of all issuances of Equity Interests in the Borrower or any of its
Restricted Subsidiaries issued following the First Amendment Effective Date,
and (ii) all Consolidated Net Income generated from and after July 1, 2006.

     (f) Minimum
Liquidity. Maintain at all times Liquidity of at
least $5,000,000.”

     2. Effectiveness of
Amendment. This First Letter Amendment (this “Amendment”) shall
become effective as of the date first above written solely when 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.

     3. Ratification. The
Credit Agreement, as amended hereby, the Notes 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.

     4. 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

7

 

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.

8

 

     This Amendment
constitutes a Loan Document and shall be governed by, and construed in
accordance with, the laws of the State of New York.

	 	 	 	 	 
	 	Very truly yours,

 

GRUBB & ELLIS COMPANY,

as Borrower

 	 
	 	By  	/s/ Shelby E. Sherard 	 
	 	 	Name:  	Shelby E. Sherard 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

(Signatures continued on next page)

 

 

Agreed as of the date first above written:

DEUTSCHE
BANK AG, NEW YORK BRANCH,

as Administrative Agent and a Lender

	 	 	 	 	 
	 	 	 
	 	By  	/s/ James Rolison 	 
	 	 	Name:  	James Rolison 	 
	 	 	Title:  	Director 	 
	 

	 	 	 	 	 
	 	 	 
	 	By  	/s/ George R. Reynolds 	 
	 	 	Name:  	George R. Reynolds 	 
	 	 	Title:  	Vice President 	 
	 

(Signatures continued on next page)

 

 

CONSENT

Dated as of June 16, 2006

     Each of the
undersigned, as a Guarantor under the Guaranty set forth in Article VIII of the
Amended and Restated Credit Agreement dated as of April 14, 2006, 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 First Letter Amendment, hereby consents to such First Letter Amendment and
hereby confirms and agrees that notwithstanding the effectiveness of such First 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/ Shelby E. Sherard 	 
	 	 	Name:  	Shelby E. Sherard 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	GRUBB & ELLIS MANAGEMENT

     SERVICES, INC.

 	 
	 	By  	/s/ Shelby E. Sherard
 	 
	 	 	Name:  	Shelby E. Sherard 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	GRUBB & ELLIS OF ARIZONA, INC.

 	 
	 	By  	/s/ Shelby E. Sherard
 	 
	 	 	Name:  	Shelby E. Sherard 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	GRUBB & ELLIS ASSET
SERVICES

     COMPANY

 	 
	 	By  	/s/ Shelby E. Sherard
 	 
	 	 	Name:  	Shelby E. Sherard 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	GRUBB & ELLIS CONSULTING

     SERVICES COMPANY

 	 
	 	By  	/s/ Shelby E. Sherard
 	 
	 	 	Name:  	Shelby E. Sherard 	 
	 	 	Title:  	Chief Financial Officer 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	GRUBB & ELLIS INSTITUTIONAL 

      PROPERTIES, INC.

 	 
	 	By  	/s/ Shelby E. Sherard
 	 
	 	 	Name:  	Shelby E. Sherard 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	GRUBB & ELLIS OF MICHIGAN, INC.

 	 
	 	By  	/s/ Shelby E. Sherard
 	 
	 	 	Name:  	Shelby E. Sherard 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	GRUBB & ELLIS MORTGAGE GROUP, INC.

 	 
	 	By  	/s/ Shelby E. Sherard
 	 
	 	 	Name:  	Shelby E. Sherard 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	GRUBB & ELLIS OF NEVADA, INC.

 	 
	 	By  	/s/ Shelby E. Sherard
 	 
	 	 	Name:  	Shelby E. Sherard 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	GRUBB & ELLIS NEW YORK, INC.

 	 
	 	By  	/s/ Shelby E. Sherard
 	 
	 	 	Name:  	Shelby E. Sherard 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	GRUBB & ELLIS ADVISERS OF

      CALIFORNIA, INC.

 	 
	 	By  	/s/ Shelby E. Sherard
 	 
	 	 	Name:  	Shelby E. Sherard 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	GRUBB & ELLIS SOUTHEAST 

      PARTNERS, INC.

 	 
	 	By  	/s/ Shelby E. Sherard
 	 
	 	 	Name:  	Shelby E. Sherard 	 
	 	 	Title:  	Chief Financial Officer 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	HSM INC.

 	 
	 	By  	/s/ Shelby E. Sherard
 	 
	 	 	Name:  	Shelby E. Sherard 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	WM. A. WHITE/GRUBB & ELLIS INC.

 	 
	 	By  	/s/ Shelby E. Sherard
 	 
	 	 	Name:  	Shelby E. Sherard 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	LANDAUER HOSPITALITY 

      INTERNATIONAL, INC.

 	 
	 	By  	/s/ Shelby E. Sherard
 	 
	 	 	Name:  	Shelby E. Sherard 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	LANDAUER SECURITIES, INC.

 	 
	 	By  	/s/ Shelby E. Sherard
 	 
	 	 	Name:  	Shelby E. Sherard 	 
	 	 	Title:  	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	GRUBB & ELLIS MANAGEMENT 

      SERVICES OF MICHIGAN, INC.

 	 
	 	By  	/s/ Shelby E. Sherard
 	 
	 	 	Name:  	Shelby E. Sherard 	 
	 	 	Title:  	Chief Financial Officerexv10w15

 

Exhibit 10.15

FORM OF GRUBB & ELLIS COMPANY

RESTRICTED SHARE AGREEMENT

FOR OUTSIDE DIRECTORS

     This Agreement is dated as of ___, by and between Grubb & Ellis Company, a Delaware
corporation having an address at 2215 Sanders Road, Suite 400, Northbrook, Illinois 60062 (the
“Company”), and ___, an individual having an address at
___(“Director”).

WITNESSETH:

     WHEREAS, Director is a member of the Board of Directors of the Company (the “Board”) who is
not an officer or employee of the Company;

     WHEREAS, in recognition of the increasing responsibilities and liabilities imposed on
directors of public companies and in order to more closely align the compensation of outside
directors with that of other similarly situated corporations, the Company has determined it would
be to the advantage and in the best interests of the Company and its stockholders to grant to
Director $50,000 worth of restricted shares of the Company’s common stock, par value $.01 per share
(the “Common Stock”) pursuant to the Company’s Restricted Share Program for Outside Directors as an
additional inducement for the Director to provide his services to the Company and as an incentive
for him to increase his efforts on behalf of the Company; and

     NOW THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties to
this Agreement hereby agree as follows:

     I. RESTRICTED STOCK GRANT; DEFINED TERMS

     The Company hereby grants to Director on the date hereof (the “Grant Date”), subject to the
terms and conditions hereinafter set forth, ___restricted shares of Common Stock (the
“Restricted Shares”) having an aggregate fair market value of $50,000 as of the close of business
on the trading day immediately preceding the date hereof.

     II. VESTING OF RESTRICTED SHARES

     All of the Restricted Shares granted to Director shall vest three years from the date hereof
(the “Vesting Date”). Accordingly, for purposes of this Section II, the Vesting Date shall be
___. Upon leaving the Board, all Restricted Shares that have already been granted to the
departing Director will continue to vest in accordance with the foregoing three-year vesting
schedule.

     III. CHANGE IN CONTROL; EQUITY ACCUMULATION

1

 

     a.    Change of Control. Upon a Change of Control, the vesting schedule of all
Restricted Shares shall be accelerated and all Restricted Shares shall simultaneously and
automatically become fully vested upon the closing of the Change of Control transaction as if the
date of the closing of the Change in Control transaction were the Vesting Date.

     For purposes of this Agreement, the term “Change in Control” shall mean any of the following:
(a) a transaction or series of transactions which results in the stockholders of Company,
immediately prior to any such transaction or series of transaction, failing to beneficially own,
immediately after the effective time of such transaction, securities of Company representing more
than fifty percent (50%) of the combined voting power of Company’s then outstanding securities
necessary to elect a majority of the Company’s directors, (b) Company shall in one transaction or a
series of transactions effect a merger, consolidation, or exchange of its securities with any other
entity which results in the stockholders of Company immediately before the effective time of such
transaction failing to beneficially own, immediately after the effective time of such transaction,
securities representing more than fifty percent (50%) of the combined voting power of the merged,
combined or new entity’s outstanding securities necessary to elect a majority of the directors of
the merged, combined or new entity, or (c) any person or entity, or persons or entities, acquires
in a transaction or series of transactions, substantially all the assets of the Company.

     b.    Equity Accumulation. Director is required to accumulate an equity position in the
Company over five years in an amount equal to $200,000 worth of Common Stock. Shares of common
stock acquired by Director pursuant to this Agreement can be applied toward this equity accumulate
requirement.

     IV. REPRESENTATION AND WARRANTIES OF DIRECTOR; RIGHTS AS STOCKHOLDER

     Director represents, warrants and agrees that he is acquiring the Restricted Shares solely for
his own account, with the present intention of holding the Restricted Shares for investment
purposes, and with no present intention of allowing others to participate in the acquisition or the
reselling thereof or otherwise participating, directly or indirectly, in a distribution of the
Restricted Shares; and Director shall not make any sale, transfer or other disposition of the
Restricted Shares without registration under the Securities Act of 1933, as amended, and the rules
and regulations promulgated thereunder, and all applicable state securities laws, unless an
exemption from registration is available under those laws. Upon the vesting of any Restricted
Shares hereunder, Director shall be entitled to the rights of a stockholder of the Company in
accordance with the Certificate of Incorporation and Bylaws of the Company.

     V. ADJUSTMENTS IN SHARES

     If there should be any change in a class of the equity securities of the Company which are the
subject of the grant of Restricted Shares hereunder through merger, consolidation, reorganization,
recapitalization, reincorporation, stock split, stock dividend

2

 

or other change in the corporate structure of the Company, the Company shall make appropriate
adjustments in order to preserve, but not to increase, the benefits to Director, including
adjustment in the number of Restricted Shares subject to any grant hereunder. Any adjustment made
pursuant to this Section as a consequence of a change in the corporate structure of the Company
shall not entitle Director to acquire a percentage ownership of the Company or any successor entity
greater than Director would receive, prior to such change; however, Director shall only be required
to reduce his ownership percentage in any new merged or consolidated entity of which the Company
may become a part to the same extent as all other existing stockholders of the Company are then
obligated to do so.

     VI. LIMITATION ON TRANSFER AND ASSIGNABILITY

     The grant of Restricted Shares under this Agreement is personal to Director and neither the
grant nor any right hereunder shall be transferable or assignable by Director, either voluntarily
or involuntarily, or by operation of law or otherwise. In the event of any attempt by Director to
alienate, assign, pledge, hypothecate, or otherwise dispose of the grant of Restricted Shares
hereunder or of any right hereunder, except as provided in this Agreement, or in the event of the
levy of any attachment, divorce proceedings, execution or similar process upon the rights or
interest hereby conferred, the Company, at its election, may terminate this Agreement in whole or
in part with respect to all Restricted Shares and neither the Director nor any other person shall
have the right to vest in such Restricted Shares at any time.

     VII. LEGEND

     Each share certificate granted under this Agreement shall bear a legend indicating that it is
“Restricted Shares” on the front of the certificate and shall bear a legend on the back
substantially in the following form:

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND THE RULES AND REGULATIONS PROMULGATED
THEREUNDER (COLLECTIVELY, THE “SECURITIES ACT”) OR QUALIFIED UNDER APPLICABLE
STATE SECURITIES LAWS, AND MAY NOT BE TRANSFERRED, SOLD, PLEDGED, ASSIGNED,
HYPOTHECATED OR OTHERWISE TRANSFERRED OR DISPOSED OF EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT AND QUALIFICATION IN EFFECT WITH RESPECT THERETO
UNDER THE SECURITIES ACT AND UNDER ANY APPLICABLE STATE SECURITIES LAWS OR AN
OPINION OF COMPANY’S COUNSEL THAT THERE IS AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS.”

     VIII. SECTION 83(B) ELECTION

3

 

     Director may elect, within 30 days of the date of the Grant Date pursuant to Section 83(b) of
the Internal Revenue Code, to include in his income the fair market value of the shares covered by
this Agreement in the taxable year of grant. If Director makes such as election, Director shall
notify the Company by simultaneously submitting to the Company at the same time as Director submits
to the Internal Revenue Service a copy of the statement filed with the Internal Revenue Service in
which the Director makes such election.

     IX. RESTRICTED SHARE CERTIFICATES TO BE HELD BY THE COMPANY

     Certificates for or all of the Restricted Shares shall be held by the Company until such
Restricted Shares vest and will be transferred to the Director only after satisfaction of all
federal, state and local income and employment tax withholding liabilities that arise either on
account of the Section 83(b) election or upon the vesting of the shares.

     X. GENERAL RESTRICTIONS

     The Company shall not be required to deliver any share certificate until it has been furnished
with such opinion, representation or other document as it may deem necessary, in its reasonable,
good faith judgment, to insure compliance with any law or regulation of the Securities and Exchange
Commission or any other governmental authority having jurisdiction over the Company, the Director,
or the Restricted Shares awarded under this Agreement or any interest therein.

     XI. NOTICES

     All notices
and other communications (and deliveries) provided for or permitted hereunder
shall be made in writing by hand delivery, facsimile, any courier guaranteeing overnight delivery
or first class registered or certified mail, return receipt requested, postage prepaid, addressed
(a) if to the Company, to the attention of its Chief Executive Officer at the address first set
forth above, with a copy simultaneously by like means to the attention of General Counsel of the
Company at the address set forth above, (b) if to Director, at the address first set forth above,
(c) or such other address as either party to this Agreement may hereafter designate in writing to
the other. All such notices and communications (and deliveries) shall be deemed to have been duly
given: at the time delivered by hand, if personally delivered; when receipt is acknowledged, if
telecopied; on the next Business Day, if timely delivered to a courier guaranteeing overnight
delivery; and five (5) days after being deposited in the mail, if sent first class or certified
mail, return receipt requested, postage prepaid.

     XII. DESCRIPTIVE HEADINGS, ETC.

     The headings in this Agreement are for convenience of reference only and shall not limit or
otherwise affect the meaning of terms contained herein. Unless the context of

4

 

this Agreement otherwise requires: (1) words of any gender shall be deemed to include each
other gender; (2) words using the singular or plural number shall also include the plural or
singular number, respectively; (3) the words “hereof”, “herein” and “hereunder” and words of
similar import when used in this Agreement shall refer to this Agreement as a whole and not to any
particular provision of this Agreement, and Section and paragraph references are to the Sections
and paragraphs of this Agreement unless otherwise specified; (4) the word “including” and words of
similar import when used in this Agreement shall mean “including, without limitation,” unless
otherwise specified; (5) “or” is not exclusive; and (6) provisions apply to successive events and
transactions.

     XIII. GOVERNING LAW; DISPUTE RESOLUTION

     This Agreement shall be governed by, and construed in accordance with, the laws of the State
of Illinois (without giving effect to such State’s the conflict of laws principles thereof). All
claims or disputes arising from the interpretation or enforcement of the provisions of this
Agreement shall be resolved in accordance with the provisions of the Employment Agreement.

     XIV. ASSIGNMENT

     Director may not assign, transfer or otherwise encumber this Agreement or any right or
interest herein in any fashion whatsoever and this Agreement shall be binding upon the successors
and assigns of the Company.

     XV. ENTIRE AGREEMENT

     This Agreement sets forth the entire and only agreement or understanding between Director and
the Company relating to the subject matter hereof and supersedes and cancels all previous
agreements, negotiations, correspondence, commitments and representations in respect thereof among
them and no party shall be bound by any conditions, definitions, warranties or representations with
respect to the subject matter of this Agreement except as provided in this Agreement.

     XVI. AMENDMENTS

     This Agreement and any term hereof may not be amended, modified, supplemented or terminated,
and waivers or consents to departures from the provisions hereof may not be given, except by
written instrument duly executed by the party against which enforcement of such amendment,
modification, supplement, termination or consent to departure is sought.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

5

 

     IN WITNESS WHEREOF, the Company and the Director have caused this Restricted Stock Agreement
to be executed on the date first set forth above.

GRUBB & ELLIS COMPANY

 

 

Director

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]