Document:

exv10w18

 

EXHIBIT 10.18

GRUBB & ELLIS REALTY ADVISORS, INC.

1,666,667 UNITS

REPRESENTING COMMON STOCK AND WARRANTS

Unit Purchase Agreement

          , 2006

Kojaian Ventures, L.L.C.

39400 Woodward Ave., Suite 250

Bloomfield Hills, Michigan 48304

Ladies and Gentlemen:

     Grubb & Ellis Realty Advisors, Inc., a Delaware corporation (the “Corporation”),
proposes, subject to the terms and conditions stated herein, to issue and sell to
Kojaian Ventures, L.L.C (“Kojaian Ventures”) an aggregate of 1,666,667 units (the
“Kojaian Units”) representing one share of common stock and two warrants in the
Corporation (the “Units”). Certain terms used but not defined herein have the meanings
assigned to them in the underwriting agreement (the “Underwriting Agreement”), dated
as of even date herewith, by and among the Corporation and the underwriters named
therein (the “Underwriters”), relating to the Corporation’s proposed sale of an
aggregate 15,000,000 Units (the “Underwritten Units”), to the Underwriters.

     This is to confirm the agreement between the Corporation and Kojaian Ventures
concerning the purchase of the Kojaian Units from the Corporation by Kojaian Ventures.

     1. Representations, Warranties and Agreements of the Corporation. The
Corporation represents and warrants to, and agrees with, Kojaian Ventures that:

     (a) Registration. A registration statement on Form S-11 (File No. 333-129190)
(the “Initial Registration Statement”) in respect of the Units has been filed with the
Securities and Exchange Commission (the “Commission” or the “SEC”); the Initial
Registration Statement and any post-effective amendment thereto, each in the form
heretofore delivered to you, and, excluding exhibits thereto, have been declared
effective by the Commission in such form; other than a registration statement, if any,
increasing the size of the offering (a “Rule 462(b) Registration Statement”), filed
pursuant to Rule 462(b) under the Securities Act of 1933, as amended (the “Act”),
which became effective upon filing, no other document with respect to the Initial
Registration Statement has heretofore been filed with the Commission; and no stop
order suspending the effectiveness of the Initial Registration Statement, any
post-effective amendment thereto or the Rule 462(b) Registration Statement, if any,
has been issued and no proceeding for that purpose has been initiated or threatened by
the Commission (any preliminary prospectus included in the Initial Registration
Statement or filed with the Commission pursuant to Rule 424(a) of the rules and
regulations of the Commission under the Act is hereinafter called a “Preliminary
Prospectus”; the various parts of the Initial Registration Statement and the Rule
462(b) Registration Statement, if any, including all exhibits thereto and including
the information contained in the form of final prospectus filed with the Commission
pursuant to Rule 424(b) under the Act and deemed by virtue of Rule 430A under the Act to be part of the Initial Registration
Statement at the time it was declared effective, each

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as amended at the time such part of the Initial Registration Statement became
effective or such part of the Rule 462(b) Registration Statement, if any, became or
hereafter becomes effective, are hereinafter collectively called the “Registration
Statement”; the Preliminary Prospectus dated February [ ], 2006 relating to the
Units that was included in the Registration Statement immediately prior to the
Applicable Time (as defined below) is hereinafter called the “Pricing Prospectus”; the
final prospectus, in the form first filed pursuant to Rule 424(b) under the Act, is
hereinafter called the “Prospectus”. For purposes of this Agreement, “Applicable Time”
means [    ] a./p.m. (New York City time) on the date of this Agreement.

     (b) No Stop Order. No order preventing or suspending the use of any Preliminary
Prospectus has been issued and no proceeding for
that purpose has been initiated or threatened by the Commission.

     (c) No Material Misstatements or Omissions in Registration Statement or
Prospectus. The Registration Statement conforms, and any further amendments or
supplements to the Registration Statement will, when they become effective, conform,
in all material respects to the requirements of the Act and the rules and regulations
of the Commission thereunder and do not and will not, as of the applicable effective
date, contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading. The Prospectus and any supplement or amendment thereto will conform when
filed with the Commission under Rule 424(b), in all material respects to the
requirements of the Act and the rules and regulations of the Commission thereunder,
and will not contain an untrue statement of a material fact or omit to state a
material fact necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading. Notwithstanding the foregoing, the
representation and warranty in this Section 1(c) shall not apply to any statements or
omissions made in reliance upon and in conformity with written information furnished
to the Corporation by an Underwriter through Deutsche Bank Securities, Inc. expressly
for use therein.

     (d) No Material Misstatements or Omissions in Pricing Disclosure Package. The
Pricing Prospectus, as supplemented by other information, if any, listed in Schedule II hereto, taken together
(collectively, the “Pricing Disclosure Package”), as of the Applicable Time, did not
include any untrue statement of a material fact or omit to state any material fact
necessary in order to make the statements therein, in light of the circumstances under
which they were made, not misleading; and the Pricing Prospectus or
the Prospectus and the Pricing Disclosure Package as of the Applicable Time, did not include any untrue
statement of a material fact or omit to state any material fact necessary in order to
make the statements therein, in light of the circumstances under which they were made,
not misleading. Each of the statements made by the Corporation in the Pricing
Prospectus, and to be made in the Prospectus and any further amendments or supplements
to the Registration Statement or Prospectus within the coverage of Rule 175(b) of the
rules and regulations under the Act, including (but not limited to) any projections of
results of operations or statements with respect to future available cash or future
cash distributions of the Corporation or the anticipated ratio of taxable income to
distributions,

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was made or will be made with a reasonable basis and in good faith. Notwithstanding
the foregoing, the representation and warranty in this Section 1(d) shall not apply to
any statements or omissions made in the Registration Statement, the Prospectus or the
Pricing Prospectus in reliance upon and in
conformity with information furnished in writing to the Corporation by an Underwriter
through Deutsche Bank Securities, Inc. expressly for use therein.

     (e) Formation and Qualification of the Corporation and the General Partner. The
Corporation has been duly formed and is validly existing in good standing as a
Corporation under the Delaware General Corporation Law with full
corporate power and authority necessary to enter into this Agreement and to conduct
its business, in each case in all material respects as described in the Registration
Statement and the Pricing Prospectus. The Corporation is duly registered or qualified
as a foreign corporation for the transaction of business under the laws of each
jurisdiction in which the character of the business conducted by it or the nature or
location of the properties owned or leased by it makes such registration or
qualification necessary, except where the failure so to register or qualify would not
(i) have a material adverse effect on the general affairs, management, the current or
future consolidated financial position, business prospects, stockholders’ equity, or
results of operations of the Corporation (a “Material Adverse Effect”), or (ii)
subject the stockholders of the Corporation to any material liability or disability.

     (f) Valid Issuance of the Units. The Kojaian Units, and the common stock and
warrants represented thereby, will be duly authorized by the Corporation and, when
issued and delivered to Kojaian Ventures against payment therefor in accordance with
the terms hereof, will be validly issued, fully paid and nonassessable.

     (g) Authority and Authorization. The Corporation has all requisite power and
authority to issue, sell and deliver the Kojaian Units, in accordance with and upon
the terms and conditions set forth in this Agreement.

     (h) Due Execution and Delivery of Purchase Agreement and Underwriting Agreement.
This Agreement and the Underwriting Agreement have been duly executed and delivered by
the Corporation.

     (i) No Conflicts. None of the offering, issuance and sale by the Corporation of
the Kojaian Units, the execution, delivery and performance of this Agreement or the
consummation of the transactions contemplated hereby (i) conflicts or will conflict
with or constitutes or will constitute a violation of the Corporation’s Certificate of
Incorporation or By-Laws, (ii) conflicts or will conflict with or constitutes or will
constitute a breach or violation of, or a default under (or an event which, with
notice or lapse of time or both, would constitute such a default), any indenture,
mortgage, deed of trust, loan agreement, lease or other agreement or instrument to
which the Corporation is a party or by which the Corporation or any of its respective
properties may be bound or subject, (iii) violates or will violate any statute, law or
regulation or any order, rule, judgment, decree or injunction of any court or
governmental agency or body having jurisdiction over the Corporation or any of its
properties or (iv) results or will result in the creation or imposition of any lien,
charge or encumbrance upon any property or assets of the Corporation, which conflicts,
breaches, violations or defaults, in the case of clauses (ii), (iii) or (iv), would,
individually or in the aggregate, have a Material Adverse Effect or would materially

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impair the ability of the Corporation to perform its obligations under this Agreement.

     (j) Investment Company. The Corporation is not now, and after giving effect to
the offering and sale of the Units and the application of the proceeds thereof, will
not be an “investment company” or a company “controlled by” an “investment company” as
such terms are defined in the Investment Company Act of 1940, as amended.

     (k) Trading. The Units, common stock, and warrants have been approved for listing
on the American Stock Exchange.

     2. Purchase and Sale. Subject to
the terms and conditions herein set
forth, the Corporation agrees to sell to Kojaian Ventures, and Kojaian Ventures hereby
agrees to purchase from the Corporation, at a purchase price of $6.00 per unit,
1,666,667 Kojaian Units. The proceeds received by the Corporation for the
Kojaian Units shall be deposited in the
trust fund established by the
Corporation for the benefit of the public securityholders, including Kojaian Ventures, as
described in the Registration Statement
pursuant to the terms of an Investment Management Trust Agreement.

     3. Delivery and Payment for the Kojaian Units. Delivery of and payment
for the Kojaian Units shall be made at 9:30 a.m., New York City time,
on                      , 2006 (such date and time of delivery and payment for the Kojaian Units being herein
called the “Closing Date”). Delivery of the Kojaian Units shall be made to Kojaian
Ventures against payment by Kojaian Ventures of the purchase price thereof to or upon
the order of the Corporation by wire transfer payable in same-day funds to an account
specified by the Corporation.

     4. Conditions of Kojaian Ventures’ Obligations. The obligations of
Kojaian Ventures hereunder, as to the Kojaian Units, shall be subject, in their
discretion, to the condition that all representations and warranties and other
statements of the Corporation herein are, at and as of the Closing Date, true and
correct, the condition that the Corporation shall have performed all of its
obligations hereunder theretofore to be performed, and the closing of the purchase and
sale of the Underwritten Units shall have occurred.

     5. All statements, requests, notices and agreements hereunder shall be in
writing, and if to Kojaian Ventures shall be delivered or sent by mail or facsimile
transmission to 39400 Woodward Ave., Suite 250, Bloomfield Hills, Michigan 48304, fax
number (248) 644-7620; and if to the Corporation shall be delivered or sent by mail to
the address of the Corporation set forth in the Registration Statement, Attention:
Mark E. Rose, Chief Executive Officer. Any such statements, requests, notices or
agreements shall take effect upon receipt thereof.

     6. This Agreement shall be binding upon, and inure solely to the benefit of,
Kojaian Ventures and the Corporation, and their respective heirs, executors,
administrators, successors and assigns, and no other person shall acquire or have any
right under or by virtue of this Agreement.

     7. This Agreement supersedes all prior agreements and understandings (whether
written or oral) between the Corporation and Kojaian Ventures, or any of them, with
respect to the subject matter hereof.

     8. This Agreement shall be governed by and construed in accordance with the laws
of the State of New York.

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     9. This Agreement may be executed by any one or more of the parties hereto in any
number of counterparts, each of which shall be deemed to be an original, but all such
counterparts shall together constitute one and the same instrument.

     If the foregoing is in accordance with your understanding, please sign and return
to us two (2) counterparts hereof, and upon the acceptance hereof by Kojaian Ventures,
this letter and such acceptance hereof shall constitute a binding agreement between
Kojaian Ventures and the Corporation.

	 	 	 	 	 
	 	Very Truly Yours,

GRUBB & ELLIS REALTY

ADVISORS, INC.

 	 
	 	 	 
	 	 	 
	 	Name:  	Mark E. Rose 	 
	 	Title:  	Chief Executive Officer 	 
	 

Accepted and agreed to upon

this ___ day of February, 2006:

KOJAIAN VENTURES, L.L.C.

a Michigan limited liability company

By: Kojaian Ventures — MM, Inc.,

a Michigan corporation,

Managing Member

	 	 	 	 	 
	 	 	 
	By:
	 	 
	 	 
	Name: C. Michael Kojaian	 	 
	Title:   President	 	 

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Schedule II

Materials Other Than the Pricing Prospectus

That Comprise the Pricing Disclosure Package

6Executive Retirement Agreement and Release

 

Exhibit 10.1

EXECUTIVE RETIREMENT AGREEMENT

AND RELEASE

     THIS AGREEMENT made and entered into this 3rd day of February, 2006 by and between
Joselynn Van Siclen (“Executive”), a United States citizen, and Vector Group Ltd., a corporation
duly organized and existing pursuant to the laws of the State of Delaware (the “Company”).

W I T N E S S E T H

     WHEREAS, Executive is currently serving as the Company’s Vice President, Chief Financial
Officer and Treasurer; and

     WHEREAS, Executive has advised the Company of her intent to retire as of June 30, 2006 (the
“Retirement Date”);

     NOW, THEREFORE, in consideration of the mutual covenants and undertakings hereinafter set
forth, Executive and the Company agree as follows:

1. Consideration. The Company will provide to Executive the following payments and
benefits, certain of which are in addition to those to which Executive would be and is otherwise
entitled:

	 	(a)	 	The Company will pay Executive the sum of $14,375.00 (“Monthly Payment”) per
month (payable semi-monthly) as salary continuation for the period beginning on the day
after the Retirement Date and continuing through June 30, 2008 (the “Retirement
Period”), from which Monthly Payments will be deducted required federal and state
withholdings tax as well as any applicable employee contributions for Company-provided
benefits.
	 
	 	(b)	 	To the extent permitted under the terms of the plans, Executive’s coverage
under the Company-provided medical, dental and disability plans will continue through
June 30, 2008, subject to payment by Executive of that portion of the premium for such
coverage as is required of active executive employees of the Company and subject to the
Company continuing such coverage for its other executives or substituting such existing
coverage with substantially similar coverage, in which case the Company will substitute
the Executive’s current coverage with substantially similar coverage as then provided
to its other executives.
	 
	 	(c)	 	The Company’s obligation to make any of the payments provided for by the terms
and provisions of Section 1(a) or any benefits provided for in Section 1(b) shall cease
upon the death of Executive, or upon Executive’s breach of any of the provisions of
this Agreement.
	 
	 	(d)	 	The options to purchase the Company’s common stock granted to Executive on
November 4, 1999, under and pursuant to the Vector Group Ltd. Amended and Restated 1999
Long Term Incentive Plan (the “Plan”) and the Stock Option Agreement dated November 4,
1999 between the Company and Executive (the
“Option Agreement”) will be exercisable pursuant to the terms of the Plan and the
Option Agreement, within the nine (9) month period following the Retirement Date.

 

 

	 	(e)	 	Notwithstanding the other provisions of this Agreement, any payment required to
be made to or provided to Executive under this Agreement upon her termination of
employment shall be made or provided promptly after the six month anniversary of
Executive’s date of termination of employment to the extent necessary to avoid
imposition upon Executive of any tax penalty imposed under Section 409A of the Internal
Revenue Code of 1986, as amended. All payments due and owing for the six month period
shall be paid on the first day following the six month anniversary of Executive’s date
of termination.

2. No Additional Payments, Benefits or Employment.

	 	(a)	 	Except for the payments and benefits provided for in Section 1, the Company or
its affiliates shall have no obligation to make any payment to or for the benefit of
Executive or to provide any benefit to Executive of any kind notwithstanding that such
may otherwise be available to other employees of the Company.
	 
	 	(b)	 	Effective March 31, 2006, Executive hereby resigns as Chief Financial Officer
and Treasurer of the Company.
	 
	 	(c)	 	Effective as of the Retirement Date, Executive hereby resigns all positions as
an officer or director of the Company or any of its affiliates. Executive will execute
all documentation requested to confirm such resignations.

3. General Release. In consideration of the promises of Company set forth above,
Executive and her heirs, executors and administrators, intending to be legally bound, hereby
permanently and irrevocably release and discharge Company and its parent, subsidiaries, affiliates,
and its and their officers, directors, shareholders, employees, agents, successors, assigns, heirs,
executors, and administrators and any individual or organization related to Company and against
whom or which Executive, her heirs, executors or administrators could claim (hereinafter referred
to collectively as “Releasees”) from any and all causes of actions, suits, debts, claims and
demands whatsoever, which she had, has, or may have against Releasees up until the date of her
execution of this Agreement. Particularly, but without limitation, Executive and her heirs,
executors and administrators so release any claims relating in any way to her employment
relationship with the Company, including any claims under any federal, state or local laws,
including, Title VII of the Civil Rights Act of 1964, as amended, § 2000e
et seq., the Age Discrimination in Employment Act, as amended, 29
U.S.C. § 621 et seq., any common law claims and all claims for counsel fees and
costs.

4. Indemnification; Duty to Cooperate. Executive shall be indemnified for any pending
or threatened action, suit or proceeding, by reason of the fact that Executive was an officer,
director or agent of the Company or its affiliates, and where Executive is named as a defendant in
such action, suit or proceeding, consistent with, and in the manner provided by, the Company’s
By-Laws and the Delaware General Corporation Law. Executive agrees to cooperate with the Company
or its affiliates in assisting in the defense or prosecution of any existing or future charges,
claims, demands, complaints, civil actions or other proceedings filed by or against the Company or
its affiliates which involve facts or decisions with respect to which Executive has had involvement
or knowledge.

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5. Non-Disclosure of Confidential Information. Unless compelled by a court of competent
jurisdiction, Executive will not disclose to anyone any of the Company or its affiliates’ trade
secrets or confidential or proprietary information (collectively, the “Confidential Information”).
Any information of the Company or its affiliates which is not readily available to the public shall
be considered by Executive to be Confidential Information and therefore, within the scope of this
Agreement, unless the Company advises Executive otherwise in writing. Executive represents all
property of the Company or its affiliates, including but not limited to, all computer and
electronics equipment, all memos, floppy disks, CDs, customer and product lists, and all documents,
records, notebooks and tangible articles containing or embodying Confidential Information,
including copies thereof, whether prepared by Executive or others has been returned to the Company.
In the event that Executive is requested, or required by, applicable law, regulation or legal
process to disclose any of the Confidential Information, Executive will notify the Company promptly
so that the Company or its affiliates may seek a protective order or other appropriate remedy. In
the event that no such protective order or other remedy is obtained, Executive will furnish only
that portion of the Confidential Information, which Executive is advised by counsel, is legally
required and will exercise all reasonable efforts to obtain reliable assurance that confidential
treatment will be accorded the Confidential Information.

6. Non-Disparagement. Executive will not, directly or indirectly, make or publish any
libelous or slanderous remarks about, or, through intentional or negligent action, disparage the
business conduct of the Company or its affiliates and its and their respective shareholders,
officers, directors and employees to anyone. Subject to Executive’s compliance with Section 5
hereof, the provisions of this Section 6 shall not apply to any truthful statement to be made by
Executive in any legal proceeding or government or regulatory investigation.

7. Non-Competition. Executive agrees that from the date of this Agreement through the
expiration of the Retirement Period she shall not, as an employee, consultant or in any other
capacity, provide services, in the United States, that are the same as or similar to the services
she provided to the Company or its affiliates, to any business that then engages in the United
States in the development or manufacture of cigarette products.

8. Remedy.

	 	(a)	 	In the event of a breach of the Agreement by the Company, to the extent
permitted by law, Executive’s sole remedy shall be to institute an action for breach of
this Agreement and damages therefor or specific performance of this Agreement and to
recover her reasonable attorney’s fees and costs. It is specifically acknowledged that
in the event of a breach of this Agreement, Executive shall not be entitled to rescind
this Agreement and maintain an action based upon any claims released by this Agreement.
	 
	 	(b)	 	Executive understands and agrees that the rights and obligations set forth in
Sections 4, 5, 6 and 7 shall extend beyond the Retirement Period and the termination of
employment. Without intending to limit the remedies available to the Company,
Executive acknowledges that a breach of the covenants contained in Sections 4, 5, 6 or
7 may result in material irreparable injury to the Company, or its affiliates for which
there is no adequate remedy at law, that it may not be possible to measure damages for
such injuries precisely and that, in the event of such a breach or threat thereof, the
Company shall be entitled to obtain a temporary restraining order and/or

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	 	 	 	a preliminary or permanent injunction restraining Executive from engaging in
activities prohibited or required by Sections 4, 5, 6 or 7 or such other relief as
may be required to specifically enforce any of the covenants contained therein.
Executive shall also be required to pay all legal fees and costs incurred by Company
in connection with enforcing its rights under Sections 4, 5, 6 or 7.

9. Employee Acknowledgment. Executive acknowledges the following:

	 	(a)	 	That she has been given at least twenty-one (21) days in which to consider this
Agreement;
	 
	 	(b)	 	That she has been advised in writing that she has the right to and may consult
with an attorney before executing this Agreement and that she has had such opportunity
to consult with an attorney;
	 
	 	(c)	 	That she has seven (7) days following her execution of this Agreement to revoke
this Agreement, and that to so revoke this Agreement, the Company must receive in
writing from Executive, c/o Marc N. Bell, 100 SE 2nd Street, 32nd
Floor, Miami, FL 33131, her decision to revoke this Agreement prior to the end of such
seven (7) day period;
	 
	 	(d)	 	That she is not waiving rights or claims that may arise after the date that
this Agreement is executed by her;
	 
	 	(e)	 	(i) That no promise, inducement or agreement not herein expressed has been made
to her; (ii) That she has read this Agreement and knows and understands its contents;
and (iii) That by her execution of this Agreement, she intends to be bound by the terms
and provisions of this Agreement;
	 
	 	(f)	 	That this Agreement is not and shall not be construed to be an admission of any
violation of any federal, state, or local statute or regulation, or of any duty owed by
the Company or its affiliates.

10. Notices. All notices, requests, claims, demands or other communications under this
Agreement shall be in writing and shall be deemed to have been effectively given when delivered by
overnight, priority Federal Express service, to the parties at the following addresses (or such
other address for a party as shall be specified by like notice):

To the Company:

Vector Group Ltd.

100 SE 2nd Street, 32nd Floor

Miami, FL 33131

Attn: Marc N. Bell, Esq.

Phone: (305) 579-8000

To Joselynn Van Siclen:

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11. Severability; Survival. In the event that any provision of this Agreement is found
to be void and unenforceable by a court of competent jurisdiction, then such unenforceable
provision shall be deemed modified so as to be enforceable (or if not subject to modification then
eliminated herefrom) for the purpose of those procedures to the extent necessary to permit the
remaining provisions to be enforced. The provisions of paragraphs 3, 4, 5, 6 and 8 shall survive
termination of this Agreement.

12. Binding Effect. This Agreement shall be binding upon and inure to the benefits of
the parties hereto and to their respective heirs, executors, administrators, successors and
assigns.

13. Choice of Law. This Agreement shall be construed in accordance with the laws of the
State of Florida without giving effect to principles governing conflicts of laws.

14. Entire Agreement. This Agreement contains the entire understanding of the parties
with respect to the subject matter hereof and supersedes all prior agreements and understandings
(oral or written) between the parties, including the Company’s affiliates, but, excluding, through
the Retirement Date, the Employment Agreement dated as of August 1, 1999 between the Company and
Executive. To the extent of a conflict between the terms of this Agreement, the Plan and the
Option Agreement, the terms of this Agreement shall control.

     IN WITNESS WHEREOF, Executive and the Company have executed this Agreement as of the date
first above written.

	 	 	 	 	 
	 	VECTOR GROUP LTD.

 	 
	 	BY: /s/ Richard J. Lampen
 	 
	 	Name:  	Richard J. Lampen 	 
	 	Title:  	Executive Vice President 	 
	 
	 	 	 
	 	     /s/ Joselynn D. Van Siclen
 	 
	 	JOSELYNN D. VAN SICLEN 	 
	 	 	 
	 

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