Document:

Exhibit 4.1

Exhibit 4.1

NEITHER THIS WARRANT NOR THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND SUBJECT TO SECTION
6 BELOW, NO OFFER, SALE, TRANSFER, ASSIGNMENT OR OTHER DISPOSITION MAY BE EFFECTED UNLESS (1) THERE
IS AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT COVERING THE SECURITIES, (2) THE SALE IS MADE
IN ACCORDANCE WITH RULE 144 UNDER THE ACT OR (3) AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO
COMPANY IS DELIVERED STATING THAT SUCH DISPOSITION IS IN COMPLIANCE WITH AN AVAILABLE EXEMPTION
FROM SUCH REGISTRATION (WHICH OPINION MAY BE RENDERED BY IN-HOUSE COUNSEL).

WARRANT TO PURCHASE 3,356,000 SHARES OF COMMON STOCK

Issue Date: April 15, 2011

THIS CERTIFIES THAT, for value received,
                     (together with its transferees, “Holder”), is
entitled to subscribe for and purchase                      (                    ) shares (the “Warrant Shares”)
of fully paid and nonassessable $0.01 par value per share Common Stock (the “Common Stock”) of
Grubbs & Ellis Company, a Delaware corporation (“Company”), at the Warrant Price (as hereinafter
defined), subject to the provisions and upon the terms and conditions hereinafter set forth.
Capitalized terms used but not otherwise defined herein shall have the meanings ascribed in Section
17 hereof.

1. Warrant Price. The “Warrant Price” shall initially be one cent ($0.01) per share,
subject to adjustment as provided in Section 7 below.

2. Conditions to Exercise. Unless this Warrant has previously expired pursuant to the
terms specified herein, the purchase right represented by this Warrant may be exercised, subject to
adjustment as provided in Section 7 below, during the term commencing on the Issue Date and ending
at 5:00 P.M. Pacific time on the third anniversary of the Issue Date of this Warrant (the
“Expiration Date”) only in the following circumstances:

(a) Exercisability Upon Satisfaction of Fundamental Change Condition. Holder may
exercise this Warrant on or before the Expiration Date upon the occurrence of a Fundamental Change
in which the consideration received for each share of Common Stock has a fair market value equal to
or greater than One Dollar and Ten Cents ($1.10) per share (the “Trigger Price”); provided
that if an Early Termination Event occurs this Warrant shall terminate and be of no further
force and effect; or

(b) Exercisability Upon Satisfaction of VWAP Condition. Holder may exercise this
Warrant on or before the Expiration Date beginning from the first date on which the VWAP for any
thirty (30) consecutive calendar day period following the date hereof is equal to or greater than
the Trigger Price.

 

 

 

3. Method of Exercise; Payment; Issuance of Shares; Issuance of New Warrant; Put
Rights. Subject to Section 2 hereof, the Warrant may be exercised, at the option of the
Holder, by any one or combination of the following methods:

(a) Cash Exercise. Subject to Section 2 hereof, the purchase right represented by
this Warrant may be exercised, by Holder, in whole or in part, by the surrender of the original of
this Warrant (together with a duly executed Notice of Exercise in substantially the form attached
hereto) at the principal office of Company (as set forth in Section 20 below) and by providing
payment to Company, by wire transfer of immediately available funds, of an amount equal to the
product of the Warrant Price per share multiplied by the number of Warrant Shares then being
purchased. In the event of any exercise of the rights represented by this Warrant, certificates
for the shares of stock so purchased (the “Share Certificates”) shall be in the name of, and
delivered to, Holder, or such other Person as such Holder may direct (subject to the terms of
transfer contained herein and upon payment by such Holder of any applicable transfer taxes). Such
delivery shall be made within 3 Trading Days after the exercise of this Warrant and at Company’s
expense and, unless this Warrant has been fully exercised or expired, a new Warrant having terms
and conditions substantially identical to this Warrant and representing the portion of the Warrant
Shares, if any, with respect to which this Warrant shall not have been exercised, shall also be
issued to Holder within 3 Trading Days after the exercise of this Warrant.

(b) Cashless Exercise. Subject to Section 2 hereof, if the Per Share Market Value of
one share of Common Stock on the date of exercise is greater than the Warrant Price (at the date of
calculation as set forth below), in lieu of exercising this Warrant by payment of cash, Holder may
exercise this Warrant by a cashless exercise by surrender of this Warrant at the principal office
of Company together with the properly endorsed Notice of Exercise in which event Company shall
issue to Holder a number of shares of Common Stock computed using the following formula:

	 	 	 	 	 	 	 
	 

	 	X = Y -
	 	(A)(Y)	 	 
	 

	 	 	 	 

B
	 	 

	 	 	 	 	 
	Where

	 	X =
	 	the number of shares of Common Stock to be issued to Holder.
	 
	 	 	 	 
	 

	 	Y =
	 	the number of shares of Common Stock purchasable upon
exercise of all of the Warrant or, if only a portion of the Warrant is being
exercised, the portion of the Warrant being exercised.
	 
	 	 	 	 
	 

	 	A =
	 	the Warrant Price.
	 
	 	 	 	 
	 

	 	B =
	 	the Per Share Market Value of one share of Common Stock on
the date of exercise.

In the event of any exercise of the rights represented by this Warrant, the Share Certificates
shall be in the name of, and delivered to, Holder, or such other Person as such Holder may direct
(subject to the terms of transfer contained herein and upon payment by such Holder of any
applicable transfer taxes). Such delivery shall be made within 3 Trading Days after the exercise
of this Warrant and at Company’s expense and, unless this Warrant has been fully exercised or
expired, a new Warrant having terms and conditions substantially identical to this Warrant and
representing the portion of the Warrant Shares, if any, with respect to which this Warrant shall
not have been exercised, shall also be issued to Holder within 3 Trading Days after the exercise of
this Warrant.

 

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(c) Loan Reduction Exercise. Subject to Section 2 hereof, the purchase right
represented by this Warrant may be exercised, by Holder, in whole or in part, by the surrender of
the original of this Warrant (together with a duly executed Notice of Exercise in substantially the
form attached hereto) at the principal office of Company and by delivering to Company an
executed amendment to the Credit Agreement among Grubb & Ellis Management Services, Inc., as
Borrower, Grubb & Ellis Company, as Parent Guarantor, the Several Lenders from time to time parties
thereto, and ColFin GNE Loan Funding, LLC, as Administrative Agent, dated as of April 15, 2011.
(the “Credit Agreement”), reducing the principal amount owed by an amount equal to the product of
the Warrant Price per share multiplied by the number of Warrant Shares then being purchased. In
the event of any exercise of the rights represented by this Warrant, Share Certificates shall be in
the name of, and delivered to, Holder, or such other Person as such Holder may direct (subject to
the terms of transfer contained herein and upon payment by such Holder of any applicable transfer
taxes). Such delivery shall be made within 3 Trading Days after the exercise of this Warrant and
at Company’s expense and, unless this Warrant has been fully exercised or expired, a new Warrant
having terms and conditions substantially identical to this Warrant and representing the portion of
the Warrant Shares, if any, with respect to which this Warrant shall not have been exercised, shall
also be issued to Holder within 3 Trading Days after the exercise of this Warrant.

4. Representations and Warranties of Holder and Company.

(a) Representations and Warranties by Holder. Holder represents and warrants to
Company with respect to this purchase as follows:

(i) Authorization. All company action on the part of Holder, its officers, directors,
shareholders, members or partners, as applicable, necessary for the authorization, execution,
delivery and performance of its obligations under this Warrant has been taken and this Warrant
constitutes the legally binding and valid obligation of Holder enforceable in accordance with its
terms.

(ii) Evaluation. Holder has substantial experience in evaluating and investing in
private placement transactions of securities of companies similar to Company so that Holder is
capable of evaluating the merits and risks of its investment in Company and has the capacity to
protect its interests.

(iii) Resale. Holder is acquiring this Warrant and the Warrant Shares issuable upon
exercise of this Warrant (collectively the “Securities”) for investment for its own account, not as
a nominee or agent, and not with a view to, or for resale in connection with, any distribution
thereof. Holder understands that the Securities have not been registered under the Securities Act
of 1933, as amended (the “Act”) by reason of a specific exemption from the registration provisions
of the Act which depends upon, among other things, the bona fide nature of the investment intent as
expressed herein and the other representations and warranties of Holder contained herein.

(iv) Rule 144. Holder acknowledges that the Securities must be held indefinitely
unless subsequently registered under the Act or an exemption from such registration is available.
Holder is aware of the provisions of Rule 144 promulgated under the Act which permit limited resale
of shares purchased in a private placement subject to the satisfaction of certain conditions.

(v) Accredited Investor. Holder is an “accredited investor” within the meaning of
Regulation D promulgated under the Act.

(vi) Opportunity To Discuss. Holder has read, understood, and is familiar with
Company’s public filings available at the Securities and Exchange Commission’s website and has had
an opportunity to discuss Company’s business, management and financial affairs with its management
and an opportunity to review Company’s facilities. Holder
understands that such discussions, as well as the written information issued by Company, were
intended to describe the aspects of Company’s business and prospects which Company believes to be
material but were not necessarily a thorough or exhaustive description.

 

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(b) Representations and Warranties by Company. Company hereby represents and
warrants to Holder as follows: 

(i) Corporate Organization and Authority. Company (a) is a corporation duly
organized, validly existing, and in good standing in its jurisdiction of incorporation, and (b) has
the corporate power and authority to own and operate its properties and to carry on its business as
now conducted. Company is qualified as a foreign corporation in all jurisdictions where such
qualification is required except in each jurisdiction in which failure to so qualify would not have
a material adverse effect on the business, operations, assets, liabilities, results of operations
or financial condition of Company.

(ii) Corporate Power . Company has all requisite legal and corporate power and
authority to execute, issue and deliver this Warrant, to issue the Warrant Shares issuable upon
exercise or conversion of this Warrant, and to carry out and perform its obligations under this
Warrant and any related agreements.

(iii) Authorization; Enforceability. All corporate action on the part of Company, its
officers, directors and shareholders necessary for the authorization, execution, delivery and
performance of its obligations under this Warrant and for the authorization, issuance and delivery
of this Warrant and the Warrant Shares issuable upon exercise of this Warrant has been taken and
this Warrant constitutes the legally binding and valid obligation of Company enforceable in
accordance with its terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, or similar laws relating to or affecting the enforcement of creditors’
rights, or to principles of equity.

(iv) Valid Issuance of Warrant and Warrant Shares. This Warrant has been validly
issued and is free of restrictions on transfer other than restrictions on transfer set forth herein
and under applicable state and federal securities laws. The Warrant Shares issuable upon conversion
of this Warrant, when issued, sold and delivered in accordance with the terms of this Warrant for
the consideration expressed herein, will be duly and validly issued, fully paid and nonassessable,
and will be free of restrictions on transfer other than restrictions on transfer set forth herein
and under applicable state and federal securities laws. Subject to applicable restrictions on
transfer, the issuance and delivery of this Warrant and the Warrant Shares issuable upon exercise
or conversion of this Warrant are not subject to any preemptive or other similar rights or any
liens or encumbrances except as specifically set forth in Company’s Certificate of Incorporation or
this Warrant or except as created by Holder. Subject to the accuracy of Holder’s representations
and warranties contained in Section 4(a), the offer, sale and issuance of the Warrant Shares, as
contemplated by this Warrant, are exempt from the prospectus and registration requirements of
applicable United States federal and state securities laws, and neither Company nor any authorized
agent acting on its behalf has or will take any action hereafter that would cause the loss of such
exemption.

(v) No Conflict. The execution, delivery, and performance of this Warrant will not
result in (a) any violation of, conflict with, or constitute a default under, with or without the
passage of time or the giving of notice (1) any provision of Company’s Certificate of Incorporation
or by-laws; (2) any provision of any material judgment, decree, or order to which Company is a
party, by which it is bound, or to which any of its material assets are subject; (3) any material
contract, obligation, or commitment to which Company is a party or by which it is
bound; or (4) any material statute, rule, or governmental regulation applicable to Company, or
(b) the creation of any lien, charge or encumbrance upon any material assets of Company.

 

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(vi) Capitalization. The capitalization table of Company attached hereto as Annex A
is complete and accurate as of the date hereof (after giving effect to the issuance of this
Warrant) and reflects (a) all outstanding capital stock of Company and (b) all outstanding
warrants, options, conversion privileges, preemptive rights or other rights or agreements to
purchase or otherwise acquire or issue any equity securities or convertible securities of Company.
Company has authorized the issuance of a total of 20,000,000 shares of Preferred Stock, 1,000,000
of which have been designated as Series A Preferred Stock, and 200,000,000 shares of Common Stock
and no other shares of preferred stock have been designated or issued.

5. Legends.

(a) Legend. Each certificate representing the Warrant Shares shall be endorsed with
substantially the following legend:

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR ANY STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD, TRANSFERRED,
ASSIGNED OR OTHERWISE DISPOSED OF UNLESS (1) THERE IS AN EFFECTIVE REGISTRATION
STATEMENT UNDER SUCH ACT COVERING THE SECURITIES, (2) THE SALE IS MADE IN ACCORDANCE
WITH RULE 144 UNDER THE ACT OR (3) AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO
COMPANY IS DELIVERED STATING THAT SUCH DISPOSITION IS IN COMPLIANCE WITH AN
AVAILABLE EXEMPTION FROM SUCH REGISTRATION (WHICH OPINION MAY BE RENDERED BY
IN-HOUSE COUNSEL).

Company need not enter into its stock records a transfer of Warrant Shares unless the
conditions specified in the foregoing legend are satisfied. Company may also instruct its
transfer agent not to allow the transfer of any of the Warrant Shares unless the conditions
specified in the foregoing legend are satisfied.

(b) Removal of Legend and Transfer Restrictions. The legend relating to the Act
endorsed on a certificate pursuant to paragraph 5(a) of this Warrant shall be removed and Company
shall issue a certificate without such legend to Holder if (i) the Securities are registered under
the Act and a prospectus meeting the requirements of Section 10 of the Act is available, or (ii)
Company has received an opinion of counsel (which may include the opinion of in-house counsel)
reasonably satisfactory to Company to the effect that public sale, transfer or assignment of the
Securities may be made without registration and without compliance with any restriction.

6. Conditions to Transfer or Exercise of Warrant. Subject to the further provisions
of this Section 6, this Warrant and the Warrant Shares represented hereby may be sold, transferred,
conveyed or assigned by Holder. This Warrant may not be transferred to any person who is not an
“accredited investor,” as such term is defined in Regulation D promulgated under the Act. It shall
be a condition to any transfer or exercise of this Warrant that at the time of such transfer or
exercise, Holder shall provide Company with a representation in writing that Holder or transferee
is acquiring this Warrant and the shares of Common Stock to be issued upon exercise for
investment purposes only, not as a nominee or agent, and not with a view to any sale or
distribution. As further condition to each transfer, at the request of Company, Holder shall
surrender this Warrant to Company and the transferee shall receive and accept a Warrant, of like
terms, tenor and date, executed by Company.

 

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7. Adjustment for Certain Events.

(a) Adjustment Exceptions. The number of Warrant Shares issuable upon exercise of
this Warrant shall be subject to adjustment from time to time as provided in this Section 7 (in
each case, after taking into consideration any prior adjustments pursuant to this Section 7);
provided that this Section 7 will not apply to: (i) the issuance of any Additional
Warrants (as defined in the Credit Agreement); (ii) the issuance of any Common Stock upon the
exercise of any Closing Date Warrants (as defined in the Credit Agreement) or any Additional
Warrants; (iii) the issuance of Common Stock upon conversion of the Company’s existing outstanding
12% cumulative participating perpetual convertible preferred stock upon the terms and subject to
the conditions of the Certificate of the Powers, Designations, Preferences and Rights of the 12%
Cumulative Participating Perpetual Convertible Preferred Stock as such conversion terms thereof are
in effect as of April 15, 2011; (iv) the issuance of Common Stock upon conversion of the Company’s
existing outstanding 7.95% convertible senior securities due 2015, upon the terms and subject to
the conditions of the Indenture for the 7.95% Convertible Senior Securities due 2015 as such
conversion terms thereof are in effect as of April 15, 2011; and (v) the issuance of Common Stock
as equity compensation to employees, officers, directors and independent contractor brokers (in
each case including as inducements to new hires or appointees) (collectively the “Equity
Compensation Grants”), provided that this exception to the adjustment provisions of this Section 7
is limited to the following Equity Compensation Grants: (A) the issuance of any shares of common
stock pursuant to any outstanding (as of April 15, 2011) options, restricted stock awards, stock
appreciation rights, phantom stock rights or other equity grants (the “Existing Equity
Compensation”), and (B) the issuance of an additional 2,000,000 shares of Common Stock in the form
of options, restricted stock awards, stock appreciation rights, phantom stock rights or other
equity grants (the “Additional Equity Compensation”) and the issuance of the Common Stock
underlying such Additional Equity Compensation plus any Additional Equity Compensation and any
Existing Equity Compensation that is forfeited, expired or terminated provided that any amount
issued in excess of the above will result in any requisite adjustment under this Section 7.

(b) Adjustment to Number of Warrant Shares Upon Issuance of Common Stock. Except in
the case of an event described in either Section 7(d) or Section 7(e), if Company shall, at any
time or from time to time after the Issue Date, issue or sell, or in accordance with Section 7(c)
is deemed to have issued or sold, any shares of Common Stock without consideration or for
consideration per share less than either: (i) the Per Share Market Value or (ii) the Trigger
Price, as such amounts are proportionately adjusted for stock splits, reverse stock splits, stock
combinations, stock dividends and other distributions and recapitalizations affecting the Common
Stock after the Issue Date, (collectively the “Original Prices” and the greater of (i) or (ii) the
“Original Adjustment Price”), then immediately upon such issuance or sale (or deemed issuance or
sale), the number of Warrant Shares issuable upon exercise of this Warrant immediately prior to any
such issuance or sale (or deemed issuance or sale) shall be increased to a number of Warrant Shares
equal to the product obtained by multiplying the number of Warrant Shares issuable upon exercise of
this Warrant immediately prior to such issuance or sale (or deemed issuance or sale) by a fraction
(which shall in no event be less than one):

(i) the numerator of which shall be the number of shares of Common Stock then outstanding
immediately after such issuance or sale (or deemed issuance or sale); and

 

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(ii) the denominator of which shall be the sum of (A) the number of shares of Common Stock
then outstanding immediately prior to such issuance or sale (or deemed issuance or sale) plus (B)
the aggregate number of shares of Common Stock which the aggregate amount of consideration, if any,
received by Company upon such issuance or sale (or deemed issuance or sale) would purchase at the
Original Adjustment Price.

(c) Effect of Certain Events on Adjustment to Number of Warrant Shares. For purposes
of determining the adjusted number of Warrant Shares under Section 7(b) hereof, the following shall
be applicable:

(i) Issuance of Options. If Company shall, at any time or from time to time after the
Issue Date, in any manner grant or sell (whether directly or by assumption in a merger or
otherwise) any Options, whether or not such Options or the right to convert or exchange any
Convertible Securities issuable upon the exercise of such Options are immediately exercisable, and
the price per share (determined as provided in this paragraph and in Section 7(c)(v)) for which
Common Stock is issuable upon the exercise of such Options or upon the conversion or exchange of
Convertible Securities issuable upon the exercise of such Options is less than either of the
Original Prices in effect immediately prior to the time of the granting or sale of such Options,
then the total maximum number of shares of Common Stock issuable upon the exercise of such Options
or upon conversion or exchange of the total maximum amount of Convertible Securities issuable upon
the exercise of such Options shall be deemed to have been issued as of the date of granting or sale
of such Options (and thereafter shall be deemed to be outstanding for purposes of adjusting the
number of Warrant Shares under Section 7(b)), at a price per share equal to the quotient obtained
by dividing (A) the sum (which sum shall constitute the applicable consideration received for
purposes of Section 7(b)) of (x) the total amount, if any, received or receivable by Company as
consideration for the granting or sale of all such Options, plus (y) the minimum aggregate amount
of additional consideration payable to Company upon the exercise of all such Options, plus (z), in
the case of such Options which relate to Convertible Securities, the minimum aggregate amount of
additional consideration, if any, payable to Company upon the issuance or sale of all such
Convertible Securities and the conversion or exchange of all such Convertible Securities, by (B)
the total maximum number of shares of Common Stock issuable upon the exercise of all such Options
or upon the conversion or exchange of all Convertible Securities issuable upon the exercise of all
such Options. Except as otherwise provided in Section 7(c)(iii), no further adjustment of the
number of Warrant Shares shall be made upon the actual issuance of Common Stock or of Convertible
Securities upon exercise of such Options or upon the actual issuance of Common Stock upon
conversion or exchange of Convertible Securities issuable upon exercise of such Options.

(ii) Issuance of Convertible Securities. If Company shall, at any time or from time
to time after the Issue Date, in any manner grant or sell (whether directly or by assumption in a
merger or otherwise) any Convertible Securities, whether or not the right to convert or exchange
any such Convertible Securities is immediately exercisable, and the price per share (determined as
provided in this paragraph and in Section 7(c)(v)) for which Common Stock is issuable upon the
conversion or exchange of such Convertible Securities is less than either of the Original Prices in
effect immediately prior to the time of the granting or sale of such Convertible Securities, then
the total maximum number of shares of Common Stock issuable upon conversion or exchange of the
total maximum amount of such Convertible Securities shall be deemed to have been issued as of the
date of granting or sale of such Convertible Securities (and thereafter shall be deemed to be
outstanding for purposes of adjusting the number of Warrant Shares pursuant to Section 7(b)), at a
price per share equal to the quotient obtained by dividing (A) the sum (which sum shall constitute
the applicable consideration received for purposes of Section 7(b)) of (x) the total amount, if
any, received or receivable by Company as

 

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consideration for the granting or sale of such Convertible Securities, plus (y) the minimum
aggregate amount of additional consideration, if any, payable to Company upon the conversion or
exchange of all such Convertible Securities, by (B) the total maximum number of shares of Common
Stock issuable upon the conversion or exchange of all such Convertible Securities. Except as
otherwise provided in Section 7(c)(iii), (A) no further adjustment of the number of Warrant Shares
shall be made upon the actual issuance of Common Stock upon conversion or exchange of such
Convertible Securities and (B) no further adjustment of the number of Warrant Shares shall be made
by reason of the issue or sale of Convertible Securities upon exercise of any Options to purchase
any such Convertible Securities for which adjustments of the number of Warrant Shares have been
made pursuant to the other provisions of this Section 7(c).

(iii) Change in Terms of Options or Convertible Securities. Upon any change in any of
(A) the total amount received or receivable by Company as consideration for the granting or sale of
any Options or Convertible Securities referred to in Section 7(c)(i) or Section 7(c)(ii) hereof,
(B) the minimum aggregate amount of additional consideration, if any, payable to Company upon the
exercise of any Options or upon the issuance, conversion or exchange of any Convertible Securities
referred to in Section 7(c)(i) or Section 7(c)(ii) hereof, (C) the rate at which Convertible
Securities referred to in Section 7(c)(i) or Section 7(c)(ii) hereof are convertible into or
exchangeable for Common Stock, or (D) the maximum number of shares of Common Stock issuable in
connection with any Options referred to in Section 7(c)(i) hereof or any Convertible Securities
referred to in Section 7(c)(ii) hereof, then (whether or not the original issuance or sale of such
Options or Convertible Securities resulted in an adjustment to the number of Warrant Shares
pursuant to this Section 7) the number of Warrant Shares issuable upon exercise of this Warrant at
the time of such change shall be adjusted or readjusted, as applicable, to the number of Warrant
Shares which would have been in effect at such time pursuant to the provisions of this Section 7
had such Options or Convertible Securities still outstanding provided for such changed
consideration, conversion rate or maximum number of shares, as the case may be, at the time
initially granted, issued or sold, but only if as a result of such adjustment or readjustment, the
number of Warrant Shares issuable upon exercise of this Warrant is increased.

(iv) Treatment of Expired or Terminated Options or Convertible Securities. Upon the
expiration or termination of any unexercised Option (or portion thereof) or any unconverted or
unexchanged Convertible Security (or portion thereof) for which any adjustment (either upon its
original issuance or upon a revision of its terms) was made pursuant to this Section 7 (including
without limitation upon the redemption or purchase for consideration of all or any portion of such
Option or Convertible Security by Company), the number of Warrant Shares then issuable upon
exercise of this Warrant shall forthwith be changed pursuant to the provisions of this Section 7 to
the number of Warrant Shares which would have been in effect at the time of such expiration or
termination had such unexercised Option (or portion thereof) or unconverted or unexchanged
Convertible Security (or portion thereof), to the extent outstanding immediately prior to such
expiration or termination, never been issued, provided that this Section 7(c)(iv) will not apply to
the extent the Warrant is exercised.

(v) Calculation of Consideration Received. If Company shall, at any time or from time
to time after the Issue Date, issue or sell, or is deemed to have issued or sold in accordance with
Section 7(c), any shares of Common Stock, Options or Convertible Securities: (A) for cash, the
consideration received therefor shall be deemed to be the net amount received by Company therefor;
(B) for consideration other than cash, the amount of the consideration other than cash received by
Company shall be the fair value of such consideration, except where such consideration consists of
marketable securities, in which case the amount of

 

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consideration received by Company shall be the
Per Share Market Value for such securities as of the end of business on the date of receipt of such securities; (C) for no specifically allocated
consideration in connection with an issuance or sale of other securities of Company, together
comprising one integrated transaction, the amount of the consideration therefor shall be deemed to
be the fair value of such portion of the aggregate consideration received by Company in such
transaction as is attributable to such shares of Common Stock, Options or Convertible Securities,
as the case may be, issued in such transaction; or (D) to the owners of the non-surviving entity in
connection with any merger in which Company is the surviving corporation, the amount of
consideration therefor shall be deemed to be the fair value of such portion of the net assets and
business of the non-surviving entity as is attributable to such shares of Common Stock, Options or
Convertible Securities, as the case may be, issued to such owners. The net amount of any cash
consideration shall be the dollar amount thereof and the fair value of any consideration other than
cash or marketable securities shall be determined by an Independent Appraiser.

(vi) Record Date. For purposes of any adjustment to the number of Warrant Shares in
accordance with this Section 7, in case Company shall take a record of the holders of its Common
Stock for the purpose of entitling them (A) to receive a dividend or other distribution payable in
Common Stock, Options or Convertible Securities or (B) to subscribe for or purchase Common Stock,
Options or Convertible Securities, then such record date shall be deemed to be the date of the
issue or sale of the shares of Common Stock deemed to have been issued or sold upon the declaration
of such dividend or the making of such other distribution or the date of the granting of such right
of subscription or purchase, as the case may be, provided such distribution is actually made.

(vii) Treasury Shares. The number of shares of Common Stock outstanding at any given
time shall not include shares owned or held by or for the account of Company or any of its
wholly-owned subsidiaries, and the disposition of any such shares (other than the cancellation or
retirement thereof or the transfer of such shares among Company and its wholly-owned subsidiaries)
shall be considered an issue or sale of Common Stock for the purpose of this Section 7.

(viii) Other Dividends and Distributions. Subject to the provisions of this Section
7(c), if Company shall, at any time or from time to time after the Issue Date, make or declare, or
fix a record date for the determination of holders of Common Stock entitled to receive, a dividend
or any other distribution payable in securities of Company (other than a dividend or distribution
of shares of Common Stock, Options or Convertible Securities in respect of outstanding shares of
Common Stock), cash or other property, then, and in each such event, provision shall be made so
that the Holder shall receive upon exercise of the Warrant, in addition to the number of Warrant
Shares receivable thereupon, the kind and amount of securities of Company, cash or other property
which the Holder would have been entitled to receive had the Warrant been exercised in full into
Warrant Shares on the date of such event and had the Holder thereafter, during the period from the
date of such event to and including the Exercise Date (as hereinafter defined), retained such
securities, cash or other property receivable by them as aforesaid during such period, giving
application to all adjustments called for during such period under this Section 7 with respect to
the rights of the Holder; provided, that no such provision shall be made if the Holder receives,
simultaneously with the distribution to the holders of Common Stock, a dividend or other
distribution of such securities, cash or other property in an amount equal to the amount of such
securities, cash or other property as the Holder would have received if the Warrant had been
exercised in full into Warrant Shares on the date of such event.

 

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(d) Adjustment to Number of Warrant Shares Upon Dividend, Subdivision or Combination of
Common Stock. If Company shall, at any time or from time to time after the Issue Date, (i) pay
a dividend or make any other distribution upon the Common Stock or any
other capital stock of Company payable in shares of Common Stock or in Options or Convertible
Securities, or (ii) subdivide (by any stock split, recapitalization or otherwise) its outstanding
shares of Common Stock into a greater number of shares, the number of Warrant Shares issuable upon
exercise of this Warrant immediately prior to any such dividend, distribution or subdivision shall
be proportionately increased. If Company at any time combines (by combination, reverse stock split
or otherwise) its outstanding shares of Common Stock into a smaller number of shares, the number of
Warrant Shares issuable upon exercise of this Warrant immediately prior to such combination shall
be proportionately decreased. Any adjustment under this Section 7(d) shall become effective at the
close of business on the date the dividend, subdivision or combination becomes effective.

(e) Adjustment to Number of Warrant Shares Upon Reorganization, Reclassification,
Consolidation or Merger. Subject to Section 2(a), in the event of any (i) capital
reorganization of Company, (ii) reclassification of the stock of Company (other than a change in
par value or from par value to no par value or from no par value to par value or as a result of a
stock dividend or subdivision, split-up or combination of shares), (iii) consolidation or merger of
Company with or into another Person, (iv) sale of all or substantially all of Company’s assets to
another Person, (v) transaction constituting a Fundamental Change or (v) other similar transaction
(other than any such transaction covered by Section 7(d)), in each case which entitles the holders
of Common Stock to receive (either directly or upon subsequent liquidation) stock, securities or
assets with respect to or in exchange for Common Stock, each Warrant shall, immediately after such
reorganization, reclassification, consolidation, merger, sale or similar transaction, remain
outstanding and shall thereafter, in lieu of or in addition to (as the case may be) the number of
Warrant Shares then exercisable under this Warrant, be exercisable for the kind and number of
shares of stock or other securities or assets of Company or of the successor Person resulting from
such transaction to which the Holder would have been entitled upon such reorganization,
reclassification, consolidation, merger, sale or similar transaction if the Holder had exercised
this Warrant in full immediately prior to the time of such reorganization, reclassification,
consolidation, merger, sale or similar transaction and acquired the applicable number of Warrant
Shares then issuable hereunder as a result of such exercise (without taking into account any
limitations or restrictions on the exercisability of this Warrant); and, in such case, appropriate
adjustment (in form and substance satisfactory to the Holder) shall be made with respect to the
Holder’s rights under this Warrant to insure that the provisions of this Section 7 hereof shall
thereafter be applicable, as nearly as possible, to this Warrant in relation to any shares of
stock, securities or assets thereafter acquirable upon exercise of this Warrant. In the event of a
Fundamental Change, following which the Warrants would cease to represent the right to acquire
securities, no adjustment shall be made pursuant to the terms hereof. The provisions of this
Section 7(e) shall similarly apply to successive reorganizations, reclassifications,
consolidations, mergers, sales or similar transactions. Company shall not effect any such
reorganization, reclassification, consolidation, merger, sale or similar transaction unless, prior
to the consummation thereof, the successor Person (if other than Company) resulting from such
reorganization, reclassification, consolidation, merger, sale or similar transaction, shall assume,
by written instrument substantially similar in form and substance to this Warrant and satisfactory
to the Holder, the obligation to deliver to the Holder such shares of stock, securities or assets
which, in accordance with the foregoing provisions, such Holder shall be entitled to receive upon
exercise of this Warrant. Notwithstanding anything to the contrary contained herein, if the Warrant
is exercisable in accordance with Section 2 hereof with respect to any corporate event or other
transaction contemplated by the provisions of this Section 7(e), the Holder shall have the right to
elect prior to the consummation of such event or transaction, to give effect to the exercise rights
contained in Section 3 instead of giving effect to the provisions contained in this Section 7(e)
with respect to this Warrant.

 

10

 

(f) Certain Events. If any event of the type contemplated by the provisions of this
Section 7 but not expressly provided for by such provisions (including, without limitation, the
granting of stock appreciation rights, phantom stock rights or other rights with equity features)
occurs, then the Board shall make an appropriate adjustment in the number of Warrant Shares
issuable upon exercise of this Warrant so as to protect the rights of the Holder in a manner
consistent with the provisions of this Section 7; provided, that no such adjustment pursuant to
this Section 7(f) shall decrease the number of Warrant Shares issuable as otherwise determined
pursuant to this Section 7.

8. Notice of Adjustments. Whenever the kind or number of securities issuable under
this Warrant shall be adjusted pursuant to Section 7 hereof, Company shall prepare a certificate
signed by an officer of Company setting forth, in reasonable detail, the event requiring the
adjustment, the amount of the adjustment, the method by which such adjustment was calculated, and
number or kind of shares issuable upon exercise of this Warrant after giving effect to such
adjustment, and shall cause copies of such certificate to be mailed (by certified or registered
mail, return receipt required, postage prepaid) within thirty (30) days of such adjustment to
Holder as set forth in Section 20 hereof.

9. Financial and Other Reports. From time to time up to the earlier of the Expiration
Date or the complete exercise of this Warrant, Company shall furnish to Holder, if Company is a
private company, (a) unaudited consolidated and, if available, consolidating balance sheets,
statements of operations and cash flow statements within 30 days of each fiscal month of each
fiscal year, certified by Company’s president or chief financial officer, and (b) Company’s
complete annual audited consolidated and, if available, consolidating balance sheets, statements of
operations and cash flow statements certified by an independent certified public accountant
selected by Company within 120 days of the fiscal year end or, if sooner, promptly following such
time as Company’s Board of Directors receives the audit. If Company is a publicly held company, it
shall deliver to Holder quarterly unaudited consolidated and, if available, consolidating balance
sheets, statements of operations and cash flow statements and annual audited consolidated and, if
available, consolidating balance sheets, statements of operations and cash flow statements,
certified by a recognized firm of certified public accountants, within 5 days after the statements
are required to be provided to the SEC. All such statements are to be prepared using GAAP and, if
Company is a publicly held company, are to be in compliance with SEC requirements. At the time of
Company’s delivery of quarterly financial statements in accordance with this Section 9, Company
shall also deliver to Holder an updated capitalization table of Company in the form attached hereto
as Annex A. For so long as Company is a privately held company, Holder agrees to hold in
confidence and trust and not to improperly use or disclose any information provided to or learned
by Holder in connection with its rights under this Section 9 regarding the business as conducted by
Company as of today’s date on the same terms and conditions as set forth in Section 11.8 of the
Credit Agreement.

10. Transferability of Warrant. This Warrant is transferable on the books of Company
at its principal office by the registered Holder upon surrender of this Warrant properly endorsed,
subject to compliance with Section 6 and applicable federal and state securities laws. Company
shall issue and deliver to the transferee a new Warrant representing the Warrant so transferred.
Upon any partial transfer, Company will issue and deliver to Holder a new Warrant with respect to
the Warrant not so transferred. Holder shall not have any right to transfer any portion of this
Warrant to any direct competitor of Company or to any significant shareholder or any direct or
indirect subsidiary of any such direct competitor of the Company which is known or should be known
as such to the Holder.

 

11

 

11. Registration Rights. Company grants registration rights to Holder of this Warrant
for any Common Stock of Company obtained by Holder upon exercise or conversion of this Warrant,
pursuant to the Registration Rights Agreement dated as of April 15, 2011 between Grubb & Ellis
Company CDCF II GNE Holding, LLC and CFI GNE Warrant Investor, LLC and subject to pro rata
limitations on the number of securities which can be included in a registration among other persons
who have the right to register securities pursuant to “piggyback” rights afforded to such persons.

12. No Fractional Shares. No fractional share of Common Stock will be issued in
connection with any exercise or conversion hereunder, but in lieu of such fractional share Company
shall make a cash payment therefor upon the basis of the Warrant Price then in effect.

13. Charges, Taxes and Expenses. Issuance of certificates for shares of Common Stock
upon the exercise or conversion of this Warrant shall be made without charge to Holder for any
United States or state of the United States documentary stamp tax or other incidental expense with
respect to the issuance of such certificate, all of which taxes and expenses shall be paid by
Company, and such certificates shall be issued in the name of Holder.

14. No Shareholder Rights Until Exercise; Additional Rights. Except as expressly
provided herein, this Warrant does not entitle Holder to any voting rights or other rights as a
shareholder of Company prior to the exercise hereof. Company agrees that if it shall at any time
in any manner grant to or confer upon any other holder of a warrant any right or benefit that has
the effect of establishing rights or otherwise benefiting the holder of any such warrant, in their
capacity as holder of such warrant, in a manner more favorable than the rights and benefits
established in favor of the Holder (“Additional Rights”) then, in each case, the Holder shall
automatically and without further action on behalf of Holder or Company receive substantially the
same rights and benefits as the Additional Rights afforded to such other holder of a warrant.

15. Registry of Warrant. Company shall maintain a registry showing the name and
address of the registered Holder of this Warrant. This Warrant may be surrendered for exchange or
exercise, in accordance with its terms, at such office or agency of Company, and Company and Holder
shall be entitled to rely in all respects, prior to written notice to the contrary, upon such
registry.

16. Loss, Theft, Destruction or Mutilation of Warrant. Upon receipt by Company of
evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this
Warrant, and, in the case of loss, theft, or destruction, of indemnity reasonably satisfactory to
it, and, if mutilated, upon surrender and cancellation of this Warrant, Company will execute and
deliver a new Warrant, having terms and conditions substantially identical to this Warrant, in lieu
hereof.

17. Definitions. For purposes of this Warrant, the following terms have the following
meanings:

“Affiliate” of any specified Person means any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with such specified Person.
For the purposes of this definition, “control” when used with respect to any specified Person means
the power to direct the management and policies of such Person, directly or indirectly, whether
through the ownership of voting securities, by contract or otherwise; and the terms “controlling”
and “controlled” have meanings correlative to the foregoing.

“Board” means the board of directors of Company.

 

12

 

“Capital Stock” of any person means any and all shares, interests, participations,
rights or other equivalents (however designated) of corporate stock or other equity participations,
including partnership interests, whether general or limited, of such person and any rights (other
than debt securities convertible and exchangeable into an equity interest), warrants or options to
acquire an equity interest in such person.

“Convertible Securities” means any securities (directly or indirectly) convertible
into or exchangeable for Common Stock, but excluding Options.

“Early Termination Event” means any consummation of (a) any recapitalization,
reclassification or change of Common Stock (other than changes resulting from a subdivision or
combination) as a result of which Common Stock would be converted into cash, or (b) any
consolidation or merger involving Company pursuant to which Common Stock will be converted into
cash; provided that in the case of either (a) or (b) of this definition, the
applicable transaction is an all-cash transaction, and each holder of Common Stock receives an
amount less than the Trigger Price.

“Exercise Date” means, for any given exercise of this Warrant, the date on which the
conditions to such exercise as set forth in Section 2 shall have been satisfied at or prior to 5:00
p.m., Pacific time, on a Business Day, including, without limitation, the receipt by Company of the
Exercise Agreement, the Warrant and the Aggregate Exercise Price.

“Fundamental Change” means the occurrence after the time of the Issue Date, the
following:

(a) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the
Exchange Act or any successor provisions to either of the foregoing), including any group acting
for the purpose of acquiring, holding, voting or disposing of securities within the meaning of Rule
13d-5(b)(1) under the Exchange Act, becomes the “beneficial owner” (as defined in Rule 13d-3 under
the Exchange Act, except that a person will be deemed to have “beneficial ownership” of all shares
that any such person has the right to acquire, whether such right is exercisable immediately or
only after the passage of time), directly or indirectly, of 50% or more of the total voting power
of Company’s Voting Stock (other than as a result of any merger, share exchange, transfer of assets
or similar transaction solely for the purpose of changing Company’s jurisdiction of incorporation
and resulting in a reclassification, conversion or exchange of outstanding shares of Common Stock
solely into shares of Common Stock of the surviving entity); or

(b) consummation of (A) any recapitalization, reclassification or change of Common Stock
(other than changes resulting from a subdivision or combination) as a result of which Common Stock
would be converted into, or exchanged for, stock, other securities, other property or assets, or
(B) any statutory share exchange, consolidation or merger involving Company pursuant to which
Common Stock will be converted into cash, securities or other property, or (C) any sale, transfer,
assignment, lease, conveyance or other disposition, directly or indirectly, of all or substantially
all Company’s assets and the assets of Company’s Subsidiaries, considered as a whole (other than a
disposition of such assets as an entirety or virtually as an entirety to a wholly-owned Subsidiary)
shall have occurred, provided that the following shall not be a Fundamental Change:

(i) any transaction pursuant to which holders of Company’s Capital Stock immediately prior to
the transaction are entitled to exercise, directly or indirectly, 50% or more
of the total voting power of all shares of Capital Stock entitled to vote generally in the election
of directors of the continuing or surviving Person immediately after the transaction; or

 

13

 

(ii) any merger, share exchange, transfer of assets or similar transaction solely for the
purpose of changing Company’s jurisdiction of incorporation and resulting in a reclassification,
conversion or exchange of outstanding shares of common stock solely into shares of common stock of
the surviving entity; or

(c) during any period of two consecutive years, individuals who at the beginning of such
period constituted the Board of Directors (together with any new directors whose nomination,
election or appointment by such board or whose nomination for election by Company’s stockholders
was approved by a vote of a majority of the directors then still in office who were either
directors at the beginning of such period or whose election, nomination or appointment was
previously so approved) cease for any reason to constitute 50% or more of the Board of Directors
then in office; or

(d) Company’s stockholders shall have approved any plan of liquidation or dissolution; or

(e) the Common Stock (or other common stock into which the Securities are then convertible
pursuant to the terms of this Indenture) ceases to be listed on the New York Stock Exchange, the
Nasdaq Global Select Market, the Nasdaq Global Market or the NYSE Amex (or their respective
successors).

“Independent Appraiser” means a nationally recognized or major regional investment
banking firm or firm of independent certified public accountants of recognized standing (which may
be the firm that regularly examines the financial statements of Company) that is regularly engaged
in the business of appraising the Capital Stock or assets of corporations or other entities as
going concerns, and which is not affiliated with either Company or the Holder of any Warrant.

“Options” means any warrants or other rights or options to subscribe for or purchase
Common Stock or Convertible Securities.

“Per Share Market Value” means on any particular date (a) the last sale price per
share of the Common Stock on such date on the NYSE Amex (or their respective successors) or another
registered national stock exchange on which the Common Stock is then listed, or if there is no such
price on such date, then the closing bid price or last sale price, as applicable, on such exchange
or quotation system on the date nearest preceding such date, or (b) if the Common Stock is not
listed then on the NYSE Amex (or their respective successors). or any registered national stock
exchange, the closing bid price or last sale price, as applicable, for a share of Common Stock in
the over the counter market, as reported by the OTC Bulletin Board or in the National Quotation
Bureau Incorporated or similar organization or agency succeeding to its functions of reporting
prices) at the close of business on such date, or (c) if the Common Stock is not then reported by
the OTC Bulletin Board or the National Quotation Bureau Incorporated (or similar organization or
agency succeeding to its functions of reporting prices), then the average of the “Pink Sheet”
quotes for the five (5) Trading Days preceding such date of determination, or (d) if the Common
Stock is not then publicly traded the fair market value of a share of Common Stock as determined by
an Independent Appraiser mutually agreeable to Company and the Holder; provided, that all
determinations of the Per Share Market Value shall be appropriately adjusted for any stock
dividends, stock splits or other similar transactions during such period. The determination of
fair market value by an Independent Appraiser shall be based upon the fair market value of Company
determined on a going concern basis as between a willing buyer and a
willing seller and taking into account all relevant factors determinative of value, and shall be
final and binding on all parties. In determining the fair market value of any shares of Common
Stock, no consideration shall be given to any restrictions on transfer of the Common Stock imposed
by agreement or by federal or state securities laws, or to the existence or absence of, or any
limitations on, voting rights.

 

14

 

“Person” means any individual, sole proprietorship, partnership, limited liability
company, corporation, joint venture, trust, incorporated organization or government or department
or agency thereof.

“Trading Day” means a day on which the principal Trading Market is open for trading.

“Trading Market” means any of the following markets or exchanges on which the Common
Shares are listed or quoted for trading on the date in question: the NYSE AMEX, the Nasdaq Capital
Market, the Nasdaq Global Market, the Nasdaq Global Select Market or the New York Stock Exchange
(or any successors to any of the foregoing).

“Voting Stock” of any person means Capital Stock of such person which ordinarily has
voting power for the election of directors (or persons performing similar functions) of such
person, whether at all times or only for so long as no senior class of securities has such voting
power by reason of any contingency.

“VWAP” means, for any date, the price determined by the first of the following clauses
that applies: (a) if the Common Shares are then listed or quoted on a Trading Market, the daily
volume weighted average price of the Common Shares for such date (or the nearest preceding date) on
the Trading Market on which the Common Shares are then listed or quoted as reported by Bloomberg
L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City
time)), (b) if the OTC Bulletin Board is not a Trading Market, the volume weighted average price
of the Common Shares for such date (or the nearest preceding date) on the OTC Bulletin Board, (c)
if the Common Shares are not then listed or quoted for trading on the OTC Bulletin Board and if
prices for the Common Shares are then reported in the “Pink Sheets” published by Pink OTC Markets,
Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the
most recent bid price per Common Share so reported, or (d) in all other cases, the fair market
value of a Common Share as determined by an Independent Appraiser selected in good faith by the
holders of a majority in interest of the Warrants then outstanding and reasonably acceptable to the
Company, the fees and expenses of which shall be paid by the Company.

18. Miscellaneous.

(a) Issue Date. The provisions of this Warrant shall be construed and shall be given
effect in all respect as if it had been issued and delivered by Company on April 15, 2011.

(b) Successors. This Warrant shall be binding upon any successors or assigns of
Company.

(c) Headings. The headings used in this Warrant are used for convenience only and are
not to be considered in construing or interpreting this Warrant.

(d) Saturdays, Sundays, Holidays. If the last or appointed day for the taking of any
action or the expiration of any right required or granted herein shall be a Saturday or a
Sunday or shall be a legal holiday in the State of New York, then such action may be taken or
such right may be exercised on the next succeeding day not a legal holiday.

 

15

 

(e) Attorney’s Fees. In the event of any dispute between the parties concerning the
terms and provisions of this Warrant, the party prevailing in such dispute shall be entitled to
collect from the other party all costs incurred in such dispute, including reasonable attorney’s
fees.

19. No Impairment. Company will not, by amendment of its Certificate of Incorporation
or any other voluntary action, avoid or seek to avoid the observance or performance of any of the
terms of this Warrant, but will at all times in good faith assist in the carrying out of all such
terms and in the taking of all such action as may be necessary or appropriate in order to protect
the rights of Holder against impairment.

20. Addresses. Any notice required or permitted hereunder shall be in writing and
shall be mailed by overnight courier, registered or certified mail, return receipt requested, and
postage prepaid, or otherwise delivered by hand or by messenger, addressed as set forth below, or
at such other address as Company or Holder shall have furnished to the other party in accordance
with the delivery instructions set forth in this Section 20.

	 	 	 	 	 	 	 
	 	 	If to Company:	 	Grubb & Ellis Company
	 	 	 	 	1551 N. Tustin Ave., Suite 300
	 	 	 	 	Santa Ana, CA 92705
	 	 	 	 	Attn: Chief Financial Officer
	 
	 	 	 	 	 	 
	 	 	With Copies to:	 	Zukerman, Gore, Brandeis & Crossman, LLP
	 	 	 	 	875 Third Avenue
	 	 	 	 	New York, NY 10022
	 	 	 	 	Attn: Clifford A. Brandeis
	 
	 	 	 	 	 	 
	 

	 	If to Holder:	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 	 	 	c/o Colony Capital, LLC
	 	 	 	 	2450 Broadway, 6th floor
	 	 	 	 	Santa Monica, CA 90404
	 	 	 	 	Attn:                                         
	 
	 	 	 	 	 	 
	 	 	With Copies to:	 	Skadden, Arps, Slate, Meagher & Flom LLP
	 	 	 	 	300 South Grand Avenue, Suite 3400
	 	 	 	 	Los Angeles, California 90071
	 	 	 	 	Attn: Rick Madden and Kristine Dunn

If mailed by registered or certified mail, return receipt requested, and postage prepaid,
notice shall be deemed to be given five (5) days after being sent, and if sent by overnight
courier, by hand or by messenger, notice shall be deemed to be given when delivered (if on a
business day, and if not, on the next business day).

 

16

 

21. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY WAIVES TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
LITIGATION DIRECTLY
OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS WARRANT OR THE WARRANT SHARES.

22. GOVERNING LAW. THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE CONFLICTS OF LAWS PRINCIPLES
THEREOF THAT WOULD REQUIRE THE APPLICATION OF ANOTHER STATE’S LAWS.

[Remainder of page intentionally left blank]

 

17

 

IN WITNESS WHEREOF, Company has caused this Warrant to be executed by its officer thereunto
duly authorized.

	 	 	 	 	 	 	 
	GRUBBS & ELLIS COMPANY	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

Dated as of                     , 2011.

 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	Accepted and Agreed to	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	[HOLDER]	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name	 	 	 	 
	 

	 	 	 	Title	 	 	 	 

 

 

 

NOTICE OF EXERCISE

	 	 	 
	To:
	 	 
	[Name of Company]
	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

	2.	 	The undersigned Warrantholder (“Holder”) elects to acquire shares of the Common Stock (the
“Common Stock”) of                      (the “Company”), pursuant to the terms of the Stock Purchase
Warrant issued effective [•] (the “Warrant”).

	3.	 	Holder exercises its rights under the Warrant as set forth below:

	 	 	 	 	 
	 

	 	(_____)
	 	Holder elects to purchase                      shares of
Common Stock as provided in Section 3(a) and tenders herewith a check in the
amount of $                     as payment of the purchase price.
	 
	 	 	 	 
	 

	 	(_____)
	 	Holder elects to convert the purchase rights into
shares of Common Stock as provided in Section 3(b) of the Warrant.
	 
	 	 	 	 
	 

	 	(_____)
	 	Holder elects to convert the purchase rights into
shares of Common Stock as provided in Section 3(c) of the Warrant.

	4.	 	Holder surrenders the Warrant with this Notice of Exercise.

Holder represents that it is acquiring the aforesaid shares of Common Stock for investment and not
with a view to or for resale in connection with distribution and that Holder has no present
intention of distributing or reselling the shares.

Please issue a certificate representing the shares of the Common Stock in the name of Holder or in
such other name as is specified below:

	 	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 

	 	 
	Address:
	 	 	 	 
	 

	 	 

	 	 
	Taxpayer I.D.:
	 	 	 	 
	 

	 	 

	 	 

 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	[NAME OF HOLDER]	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Date:                      ___, 20____	 	 

 

 

 

ANNEX A

CAPITALIZATION TABLE

(as of March 31, 2011)

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Number of Shares	 
	 	 	Amount	 	 	 	 	 	 	Outstanding (or Shares	 
	Class of Stock or Equity	 	Authorized (if	 	 	Amount	 	 	underlying such equity	 
	Interest	 	applicable)	 	 	Outstanding	 	 	interest)	 
	Common Stock; $0.01 par value
	 	 	200,000,000	 	 	 	69,921,581	(1)	 	 	69,921,581	 
	Preferred Stock; $0.01 par value
	 	 	19,000,000	 	 	 	0	 	 	 	0	 
	12% Cumulative Participating Perpetual Convertible Preferred Stock; $0.01 par value
	 	 	1,000,000	 	 	 	965,700	 	 	 	58,527,214	 
	Options
	 	 	 	(2)	 	 	321,400	 	 	 	321,400	 
	Unvested Restricted Stock
	 	 	 	(2)	 	 	4,257,843	 	 	 	4,257,843	 
	Phantom Stock
	 	NA	 	 	 	4,058,251	 	 	 	4,058,251	 
	Treasury Stock
	 	NA	 	 	 	1,267,974	 	 	 	1,267,974	 
	7.95% convertible senior securities due 2015; convertible at the rate of 445.583 Shares for each $1,000 principal amount
	 	NA	 	 	$	31,500,000	 	 	 	14,035,865	 

	 	 	 
	(1)	 	Includes Unvested Restricted Stock set forth on this table, but does not
include Phantom Stock set forth in this table.
	 
	(2)	 	590,175 Shares remaining available for future issuance under previously
authorized equity compensation plans.Exhibit 4.2

Exhibit 4.2

EXECUTION VERSION

REGISTRATION RIGHTS AGREEMENT

Dated as of April 15, 2011

by and among

GRUBBS & ELLIS COMPANY

and

THE PARTIES NAMED HEREIN

 

 

 

REGISTRATION RIGHTS AGREEMENT

This Registration Rights Agreement (this “Agreement”) is made and entered into as of April 15,
2011 by and among Grubbs & Ellis Company, a Delaware corporation (the “Company”), and the initial
holders of the Warrants listed on Schedule I attached hereto (each, an “Initial Holder” and
collectively, the “Initial Holders”), who have acquired the Warrants pursuant to the Warrant
Agreements (as defined below).

WHEREAS, on the date hereof, the Initial Holders are acquiring pursuant to several warrant
agreements, each dated as of April 15, 2011 (collectively for all Initial Holders, the “Warrant
Agreements”), in each case, among the Company and the individual Initial Holder party thereto,
warrants exercisable to purchase an aggregate of Six Million Seven Hundred and Twelve Thousand
(6,712,000) shares of Common Stock (as defined below), in addition to any additional warrants
received pursuant to the Credit Agreement among Grubb & Ellis Management Services, Inc., as
Borrower, Grubb & Ellis Company, as Parent Guarantor, the Several Lenders from time to time parties
thereto, and ColFin GNE Loan Funding, LLC, as Administrative Agent, dated as of April 15, 2011 (the
“Credit Agreement”), with all warrants (collectively the “Warrants”), subject to adjustment as set
forth in the Warrant Agreements;

WHEREAS, in order to induce the Initial Holders to acquire the Warrants, the Company has
agreed to provide the registration rights set forth in this Agreement; and

WHEREAS, the execution and delivery of this Agreement is a requirement set forth in Article 11
of each of the Warrant Agreements.

NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein, and
for other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, and as an inducement to the Initial Holders to consummate the transactions
contemplated by the Warrant Agreements, the parties hereto, intending to be legally bound hereby,
agree as follows:

Section 1. Definitions.

As used in this Agreement, the following terms shall have the meanings set forth below:

“Advice” has the meaning given to such term in Section 5(o).

“Affiliate” has the meaning given to such term in Rule 144 of the Securities Act.

“Agreement” has the meaning given to such term in the introduction hereto.

“Business Day” means any day other than a Saturday, Sunday or other day on which banks in New
York City are authorized or required by law to close.

“Commission” means the Securities and Exchange Commission or any other Federal agency at the
time administering the Securities Act.

 

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“Common Stock” means the Company’s common stock, par value $0.01 per share.

“Company” has the meaning given to such term in the introduction hereto.

“controlling person” has the meaning given to such term in Section 8(a).

“Credit Agreement” has the meaning given to such term in the introduction hereto.

“Delay Period” has the meaning given to such term in Section 2(d).

“Demand Notice” has the meaning given to such term in Section 2(a).

“Demand Registration” has the meaning given to such term in Section 2(b).

“Effectiveness Period” has the meaning given to such term in Section 2(d).

“Exchange Act” means the Securities Exchange Act of 1934, as amended, or any similar Federal
statute, and the rules and regulations of the Commission thereunder.

“FINRA” means the Financial Industry Regulatory Authority, Inc.

“Furnished Information” has the meaning given to such term in Section 7(c).

“Holder” means any person who holds Registrable Securities. For purposes of this Agreement, a
Person will be deemed to be a Holder of Registrable Securities whenever such Person has the right
to acquire, directly or indirectly, such Registrable Securities (upon conversion or exercise of any
securities, in connection with a transfer of securities or otherwise, but disregarding any
restrictions or limitations upon the exercise of such right), whether or not such acquisition has
actually been effected; provided the record holder provides notice to the Company of such
arrangement and instructs the Company to treat such Person as the Holder of such Registrable
Securities.

“Holders Counsel” means such counsel consisting of a single law firm chosen by the Majority
Holders included in a registration.

“Initial Holder” has the meaning given to such term in the introduction hereto.

“Interruption Period” has the meaning given to such term in Section 5(o).

“Kojaian Holder” has the meaning given to such term in Section 2(e).

“Kojaian Registration Rights Agreement” means that certain Registration Rights Agreement dated
as of April 28, 2006, by and between Grubb & Ellis Company and Kojaian Ventures L.L.C. and Kojaian
Holdings, LLC.

“Long-Form Registration” has the meaning given to such term in Section 2(a).

 

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“Losses” has the meaning given to such term in Section 8(a).

“Majority” means, with respect to the Warrant Shares, a majority of the Warrant Shares
(assuming exercise of the Warrants if and to the extent not then exercised).

“Majority Holders” means Holders of a majority in aggregate amount of all Registrable
Securities.

“Other Security Holder” has the meaning given to such term in Section 2(e).

“Person” means any individual, corporation, partnership, joint venture, association,
joint-stock company, trust, unincorporated organization, limited liability company or government or
other entity.

“Piggyback Registration” has the meaning given to such term in Section 3(a).

“Registrable Securities” means the Warrants and/or the Warrant Shares; provided,
however, that any such security shall cease to be a Registrable Security when (i) a
Registration Statement registering such security under the Securities Act has been declared or
becomes effective and such security has been sold or otherwise transferred by the holder thereof
pursuant to and in a manner contemplated by such effective Registration Statement; (ii) such
security is sold pursuant to Rule 144 under the Securities Act under circumstances in which any
legend borne by such security relating to restrictions on transferability thereof, under the
Securities Act or otherwise, is removed by the Company; (iii) such security is eligible for sale
pursuant to Rule 144 under the Securities Act without limitation on volume or manner of sale, or
(iv) any such security shall have ceased to be outstanding.

“Registration Expenses” has the meaning given to such term in Section 6(a).

“Registration Statement” means any registration statement under the Securities Act of the
Company that covers any of the Registrable Securities pursuant to the provisions of this Agreement,
including the related prospectus and any information deemed to be a part of such prospectus
pursuant to Rule 430A, 430B or 430C, as applicable, under the Securities Act, all amendments and
supplements to such registration statement or prospectus, including pre- and post-effective
amendments (including any registration statement filed pursuant to Rule 462(b) under the Securities
Act), all exhibits thereto and all material incorporated by reference or deemed to be incorporated
by reference in such registration statement.

“Securities Act” means the Securities Act of 1933, as amended, or any similar Federal statute, and
the rules and regulations of the Commission promulgated thereunder.

“Selling Holder” means, with respect to any registration statement, any Holder whose
Registrable Securities are included therein.

“Short-Form Registration” has the meaning given to such term in Section 2(b).

“Warrant Agreements” has the meaning given to such term in the recitals hereto.

 

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“Warrants” has the meaning given to such term in the recitals hereto.

“Warrant Shares” means the shares of Common Stock issuable upon exercise of the Warrants.

Unless otherwise stated, other capitalized terms contained herein have the meanings set forth
in the Warrant Agreements.

Section 2. Demand Registrations.

(a) At any time that the Company is not qualified to use a Registration Statement on Form S-3
or any similar Short-Form Registration (as defined below), Holders of at least an aggregate of
thirty five percent (35%) of the Registrable Securities then outstanding may request, by written
notice given to the Company (the “Demand Notice”), the Company to register under and in accordance
with the provisions of the Securities Act all or any portion of their Registrable Securities on
Form S-1 or any successor form thereto (each a “Long-Form Registration”). Each request for a
Long-Form Registration shall specify the approximate number of Registrable Securities required to
be registered. Upon receipt of such request, the Company shall promptly (but in no event later
than three (3) Business Days following receipt thereof) deliver notice of such request to all other
holders of Registrable Securities who shall then have ten (10) days from the date such notice is
given to notify the Company in writing of their desire to be included in such registration. The
Company shall cause a Registration Statement on Form S-1 (or any successor form) to be filed within
forty-five (45) days after the date on which the initial request is given and shall use its
reasonable efforts to cause such Registration Statement to be declared effective by the Commission
as soon as practicable thereafter. The Company shall not be required to effect more than two (2)
such Long-Form Registrations in any twelve (12) month period for the holders of Registrable
Securities; provided, that a Registration Statement shall not count as a Long-Form Registration
requested under Section 2(a) unless and until it has become effective and the holders requesting
such registration are able to register and sell the Registrable Securities requested to be included
in such registration. If the Company qualifies to use a Registration Statement on Form S-3 or any
similar Short-Form Registration after the date that a Long-Form Registration is filed or declared
effective, the Company may convert such Long Form Registration into a Short-Form Registration.

(b) The Company shall use its commercially reasonable efforts to qualify and to remain
qualified to register securities under the Securities Act pursuant to a Registration Statement on
Form S-3 or any successor form thereto. If the Company is qualified for the use of a Registration
Statement on Form S-3, the holders of Registrable Securities shall have the right to request an
unlimited number of registrations of their Registrable Securities on Form S-3 or any similar
short-form registration (each a “Short-Form Registration” and, together with each Long-Form
Registration, a “Demand Registration”). Each request for a Short-Form Registration shall specify
the approximate number of Registrable Securities requested to be registered. Upon receipt of any
such request, the Company shall promptly (but in no event later than three (3) Business Days
following receipt thereof) deliver notice of such request to all other holders of Registrable
Securities who shall then have ten (10) days from the date such notice is given to notify the
Company in writing of their desire to be included in such registration. If the
Company is qualified to register securities under the Securities Act pursuant to a
Registration Statement on Form S-3 or any successor form thereto or another Short-Form
Registration, the Company shall cause such Short-Form Registration to be filed within thirty (30)
days after the date on which the initial request is given and shall use its best efforts to cause
such Registration Statement to be declared effective by the Commission as soon as practicable
thereafter.

 

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(c) Upon the occurrence of any event that would cause the Demand Registration (i) to contain a
material misstatement or omission or (ii) to be not effective and usable for resale of Registrable
Securities during the period that such Demand Registration is required to be effective and usable,
the Company shall promptly file an amendment to the Demand Registration, in the case of clause (i),
correcting any such misstatement or omission and, in the case of either clause (i) or (ii), use its
commercially reasonable efforts to cause such amendment to be declared effective and such Demand
Registration to become usable as soon as practicable thereafter.

(d) The Company agrees to use its commercially reasonable efforts to keep any Demand
Registration filed pursuant to this Section 2 continuously effective and usable for the
sale of Registrable Securities until such time as all the Registrable Securities covered by such
Registration Statement have been sold pursuant to such Registration Statement or such Registrable
Securities cease to be Registrable Securities, as such period may be extended pursuant to this
Section 2. Notwithstanding the foregoing, the Company shall have the right to delay the
filing of any Long-Form Registration or Short-Form Registration otherwise required to be prepared
and filed by the Company pursuant to this Section 2, or to suspend the use of any Long Form
Registration or Short-Form Registration, for a period not in excess of sixty (60) days (a “Delay
Period”) if a majority of the Board of Directors of the Company determines in their reasonable good
faith judgment that the registration and distribution of the Registrable Securities covered or to
be covered by such Long-Form Registration or Short-Form Registration, as applicable (i) is not in
the best interests of the Company, or would have a material adverse effect on the Company or, any
proposed or pending financing, acquisition, disposition, merger or other material corporate
transaction involving the Company or any of its subsidiaries, (ii) would require disclosure of any
other material corporate development that the Company is not otherwise required to disclose or
(iii) the prospectus contained in the Registration Statement of the Long Form Registration or
Short-Form Registration contains an untrue statement of material fact or omits to state a material
fact necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading. The Company will promptly give the Holders written notice of
such determination and an approximation of the period of the anticipated delay; provided,
however, that the aggregate number of days included in all Delay Periods during any
consecutive twelve (12) months shall not exceed the aggregate of (x) ninety (90) days minus (y) the
number of days occurring during all Interruption Periods (as defined in Section 5(o)
hereof) during such consecutive twelve (12) months. Each Holder agrees to cease all public
disposition efforts under such Long-Form Registration or Short-Form Registration with respect to
Registrable Securities held by such Holder immediately upon receipt of notice of the beginning of
any Delay Period. The Company shall provide written notice to the Holders of the end of each Delay
Period. The Company shall not be entitled to initiate a Delay Period unless it shall concurrently
prohibit sales by other security holders of the Company under registration statements covering
securities held by such other security holders and sales by executive officers of the Company
during such period. The time period for which the Company
is required to maintain the effectiveness of a Long-Form Registration or Short-Form
Registration referred to above shall be extended by the aggregate number of days of all Delay
Periods and Interruption Periods affecting such Registration, and such period and any extension
thereof is hereinafter referred to as the “Effectiveness Period.”

 

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(e) Other than securities of Kojaian Ventures L.L.C., Kojaian Holdings, LLC and their
respective affiliates and permitted transferees under the Kojaian Registration Rights Agreement
(collectively the “Kojaian Holders”), the Company shall not include any securities that are not
Registrable Securities in any Registration Statement filed pursuant to this Section 2 without the
prior written consent of Selling Holders holding a Majority of the Registrable Securities covered
by such Demand Registration. After the date of this Agreement, the Company shall not enter into
any agreement granting any person other than the Holders (an “Other Security Holder”) piggyback
registration rights that would permit the Company securities of such Other Security Holder (or such
Other Security Holder’s successors or assigns) to be included on a Demand Registration filed
pursuant to this Section 2 or granting any Other Security Holder piggyback rights to include such
Other Security Holder’s securities, in any registration in which the Holders have the right to
include Registrable Securities, on a priority basis more favorable to such Other Security Holder
than is provided pursuant to the first paragraph of Section 3(b). Other than the Kojaian
Registration Rights Agreement, there are no agreements granting any Other Security Holder the right
to include securities in any registration pursuant to this Section 2.

(f) If (x) (i) the Selling Holders holding a Majority of the Registrable Securities covered by
such Registration Statement, or the Majority Holders, as applicable, consent to the Company or any
such Other Security Holder (or such Other Security Holder’s successors or assigns) having the right
to have Company securities included on a Registration Statement filed pursuant to this Section
2 or (ii) any Kojaian Holder exercises such Kojaian Holder’s rights under the Kojaian
Registration Rights Agreement and elects to have such Kojaian Holder’s securities included in a
Registration Statement filed pursuant to this Section 2 and (y) the managing
underwriter(s) of the offering advise the Company in writing that in their good faith judgment the
aggregate amount of securities, including Registrable Securities, of the Company that the Company,
all Holders, all Kojaian Holders and all Other Security Holders have requested to be included in
such registration exceeds the maximum number of securities, including Registrable Securities, that
can reasonably be expected to be sold in such offering without adversely affecting the success of
the offering, then the Company will include the Registrable Securities and such other securities in
the Demand Registration filed pursuant to this Section 2 in the following order of
priority:

(i) first, the Registrable Securities requested to be included in such registration by
the Holders and securities requested to be included in such registration by the Kojaian
Holders pro rata among such Holders and Kojaian Holders on the basis of the
aggregate amount of securities owned by each such Holder and such Kojaian Holder,

(ii) second, if no Registrable Securities requested to be included in such registration
by the Holders and no securities requested to be included in such registration by the
Kojaian Holders were excluded pursuant to clause (i) of this Section 2(f)
and subject to Section 2(e), securities requested to be included in such
registration by
Other Security Holders (other than Kojaian Holders) pro rata among such Other
Security Holders on the basis of the aggregate amount of securities owned by each such Other
Security Holders, and

 

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(iii) third, the securities the Company proposes to sell;

provided, that if such registration contemplates an “over-allotment option” on the part of
underwriters, to the extent such over-allotment option is exercised and Holders were excluded from
registering any Registrable Securities and/or Kojaian Holders were excluded from registering
securities under the Kojaian Registration Rights Agreement pursuant to the priority provisions of
this Section 2(f), then the over-allotment option shall be exercised first with respect to
such Registrable Securities and securities of such Kojaian Holders and second with respect to
securities of Other Security Holders and the Company (subject to Section 2(e), in each
case, to the extent of such exclusion).

(g) Selling Holders holding a Majority of the Registrable Securities to be included in a
Demand Registration pursuant to this Section 2 may, at any time prior to the effective date
of the Demand Registration in respect thereof, revoke such request by providing a written notice to
the Company to such effect; provided, that any Long-Form Registration shall not be counted
towards determining the number of Long-Form Registrations to which the Holders are entitled
pursuant to Section 2(a) if the Holders pay the out of pocket expenses incurred by the
Company in connection with such revoked Long-Form Registration.

Section 3. Piggyback Registrations.

(a) Right to Piggyback. If the Company at any time proposes to register any shares of
Common Stock under the Securities Act, whether or not for sale for its own account, on a form and
in a manner that would permit registration of Registrable Securities for a public offering under
the Act (other than on a registration statement (i) on Form S-4 or Form S-8 or any successor form
thereto, (ii) filed in connection with an exchange offer, (iii) filed in connection with the
Registration Rights Agreement, dated May 7, 2010, by and between the Company and JMP Securities
LLC, as initial purchaser, (iv) filed in connection with the Registration Rights Agreement dated as
of October 27, 2009, by and among Company and the persons listed on the Schedule A to such
Registration Rights Agreement, as amended by that certain Amendment No. 1 to the Registration
Rights Agreement dated November 4, 2007, or (v) filed in connection with the Kojaian Registration
Rights Agreement) the Company shall give prompt written notice of such proposed filing to all
Holders at least ten (10) Business Days before the anticipated filing date. Such notice shall
offer such Holders the opportunity to register such amount of Registrable Securities as they shall
request (a “Piggyback Registration”). Subject to Sections 3(c) hereof, the Company shall
include in each such Piggyback Registration all Registrable Securities with respect to which the
Company has received written requests for inclusion therein within ten (10) Business Days after
such notice has been delivered to the Holders. If the Registration Statement relating to the
Piggyback Registration is to cover an underwritten offering, such Registrable Securities shall,
subject to the provisions of this Section 3, be included in the underwriting on the same
terms and conditions as the securities otherwise being sold through the underwriters. The Selling
Holders shall be permitted to withdraw all or a part of the Registrable Securities held by such
Selling Holders which were to be included in such Piggyback Registration at any time prior
to the effective date of such registration. The Company may withdraw any registration
statement for such Piggyback Registration at any time before it becomes effective, or postpone the
offering of securities thereunder, without obligation or liability to any Selling Holder. No
Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying any
such Piggyback Registration as the result of any controversy that might arise with respect to the
interpretation or implementation of this Agreement.

 

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(b) Piggyback on Primary Registrations. If a Piggyback Registration is an
underwritten primary registration on behalf of the Company, and the managing underwriter(s) of such
offering advise the Company in writing that in their good faith judgment the aggregate amount of
securities, including Registrable Securities, of the Company that the Company, all Holders, the
Kojaian Holders and all Other Security Holders, pursuant to contractual rights to participate in
such registration, have requested to be included in such registration exceeds the maximum number of
securities, including Registrable Securities, that can reasonably be expected to be sold in such
offering without adversely affecting the success of the offering, then the Company will include the
Registrable Securities and such other securities in the Registration Statement relating to such
registration in the following order of priority:

(i) first, the securities the Company proposes to sell,

(ii) second, the securities requested to be included in such registration by the
Kojaian Holders, pro rata among the Kojaian Holders in accordance with the terms of the
Kojaian Registration Rights Agreement,

(iii) third, if no securities requested to be included in such registration by the
Kojaian Holders were excluded pursuant to clause (ii) of this Section 3(b),
the Registrable Securities requested to be included in such registration by the Holders
pro rata among such Holders on the basis of the aggregate amount of Registrable
Securities requested to be included by each such Holder,

(iv) fourth, if no securities requested to be included in such registration by the
Kojaian Holders were excluded pursuant to clause (ii) of this Section 3(b)
and if no Registrable Securities requested to be included in such registration by the
Holders were excluded pursuant to clause (iii) of this Section 3(b),
securities of the Company requested to be included in such registration by Other Security
Holders (other than Kojaian Holders) pro rata among such Other Security Holders on
the basis of the aggregate amount of such securities requested to be included by all such
Other Security Holders;

provided, that if such registration contemplates an “over-allotment option” on the part of
underwriters, to the extent such over-allotment option is exercised and Kojaian Holders were
excluded from registering any securities requested and Holders were excluded from registering
Registrable Securities pursuant to the priority provisions of this Section 3(b), then the
over-allotment option shall be exercised first with respect to such securities of such Kojaian
Holders, second with respect to such Registrable Securities and third with respect to such other
securities requested to be included by Other Security Holders (other than Kojaian Holders) to the
extent of such exclusion.

 

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(c) Priority on Secondary Registrations. If a Piggyback Registration is an
underwritten secondary registration on behalf of Other Security Holders (other than a Kojaian
Holder) and the managing underwriter(s) of such offering advise the Company in writing that in
their good faith judgment the aggregate amount of securities, including Registrable Securities, of
the Company that all Holders and all Other Security Holders have requested to be included in such
registration exceeds the maximum number of securities, including Registrable Securities, that can
reasonably be expected to be sold in such offering without adversely affecting the success of the
offering, then the Company will include the Registrable Securities and such other securities in the
Registration Statement relating to such registration in the following order of priority:

(i) first, the securities requested to be in included in such registration of the Other
Security Holders (other than a Kojaian Holder) requesting such registration and the
securities of Kojaian Holders requested to be included in such registration pro rata
on the basis of the number of securities of the Company owned by such Other Security Holders
and Kojaian Holders

(ii) second, if no securities of the Other Security Holders initiating the registration
request or the Kojaian Holders were excluded pursuant to clause (i) of this
Section 3(c), the Registrable Securities requested to be included in such
registration by the Holders pro rata among such Holders on the basis of the
aggregate amount of Registrable Securities requested to be included by each such Holder, and

(iii) third, if no securities of the Other Security Holders initiating the registration
request or the Kojaian Holders were excluded pursuant to clause (i) of this
Section 3(c), and if no Registrable Securities requested to be included by the
Holders were excluded pursuant to clause (ii) of this Section 3(c), the
securities the Company proposes to sell;

provided, that if such registration contemplates an “over-allotment option” on the part of
underwriters, to the extent such over-allotment option is exercised and Other Security Holders
initiating the registration request or the Kojaian Holders were excluded from registering
securities pursuant to the provisions of this Section 3(c) or Holders were excluded from
registering any Registrable Securities pursuant to the provisions of this Section 3(c),
then the over-allotment option shall be exercised first with respect to such securities of the
Other Security Holders initiating the registration request and the Kojaian Holders and second such
Registrable Securities, in each case, to the extent of such exclusion.

Section 4. Hold-Back Agreements.

(a) The Company agrees (i) if so required by the managing underwriter of an underwritten
offering effected pursuant to a Registration under Section 2 or 3 hereof, not to
effect any public or private sale or distribution of securities of the same type (including any
underlying securities) as the Registrable Securities included in such underwritten registration, or
any securities convertible into or exchangeable or exercisable for such securities, during the
seven (7) days prior to the pricing of such offering and until the earlier of

 

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(A) the end of the
ninety (90) day period beginning on the date of pricing of such offering (except as part of such underwritten offering and except pursuant to registrations on Form S-8 or Form S-4 or any
successor forms to such Forms), unless the managing underwriter for such offering otherwise agrees,
and (B) ten (10) days after the withdrawal of the related Registration Statement, and (ii) to use
its commercially reasonable efforts to cause each holder of securities of the same type as the
securities included in such underwritten offering, or any securities convertible into or
exchangeable or exercisable for such securities, in each case purchased from the Company at any
time after the date of this Agreement (other than in a registered public offering) to agree not to
effect any public or private sale or distribution or otherwise dispose (including sales pursuant to
Rule 144 under the Securities Act) of any such securities during such period (except as part of
such underwritten registration, if otherwise permitted), unless the managing underwriter for such
offering otherwise agrees.

(b) If the Company registers securities of the Company in connection with an underwritten
public offering by the Company, and no Registrable Securities have been excluded from such offering
pursuant to Section 3(b) hereof, the Holders, if so requested by the managing underwriter
of such underwritten offering, agree not to effect any public sale or distribution of any
Registrable Securities (other than as a part of such underwritten public offering) without the
consent of the Company or such managing underwriter during the period commencing on a date
specified by the underwriter, such date not to exceed seven days prior to the effective date of
such registration statement, and ending on the earliest of (i) ninety (90) days after the pricing
of such offering, (ii) the abandonment of such offering, and (iii) the first date on which the
Company or any affiliate or executive officer of the Company is permitted to sell securities of the
Company.

Section 5. Registration Procedures.

Whenever the Company is required to register Registrable Securities pursuant to Section
2 or 3 hereof, the Company shall:

(a) prepare and file with the Commission a Registration Statement with respect to such
Registrable Securities as prescribed by Section 2 or 3 hereof on a form available
for the sale of the Registrable Securities by the holders thereof in accordance with the intended
method or methods of distribution thereof and use its commercially reasonable efforts to cause each
such Registration Statement to become effective within, and to keep each such Registration
Statement effective for, the time periods provided herein and to comply in all material respects
with the Securities Act as amended, and the rules and regulations of the Commission thereunder;
provided, however, that before filing a Registration Statement (or any amendments
or supplements thereto), the Company (i) will furnish to the Selling Holders, Holders Counsel, the
underwriters, if any, and counsel for the underwriters copies of all such documents proposed to be
filed, which documents will be subject to the reasonable review and comment of such Selling Holders
for a period of at least five (5) days (or such shorter time period as is practicable and of which
notice is given to such Selling Holders); and (ii) will make available, at reasonable times, for
inspection by (and, to the extent reasonably requested, will furnish copies to) one Holder
designated by the Majority Holders and any single counsel or accountant retained by such managing
underwriter or Holder of (A) all financial and other information required by the Commission to be
included in such Registration Statement and (B) all financial

 

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and other records, pertinent
corporate documents and properties of the Company customarily reviewed in connection with an underwritten registration, and will cause the officers, directors and
employees of the Company, counsel to the Company and independent certified public accountants of
the Company, to respond to such inquiries and supply all information, as shall be reasonably
necessary, in the respective opinions of Holders Counsel and counsel to the underwriters, if any,
to conduct a reasonable investigation within the meaning of the Securities Act, provided,
that any records, information or documents that are designated by the Company in writing as
confidential shall be kept confidential by such Persons unless disclosure of such records,
information or documents is required by court or administrative order or under applicable law; and
provided, further, that appropriate arrangements are made, to the extent required
by applicable antitrust law, to limit access to such information of the Company to representatives
of the Selling Holders who are not officers or employees of the Selling Holders; and
provided, further, that Holders agree that they shall cause such Persons, upon
learning that disclosure of such information is sought in a court or administrative agency of
competent jurisdiction, to give notice to the Company and allow the Company, at its expense, to
undertake appropriate action to prevent or limit disclosure of the information deemed confidential;
and provided, further, that, without limiting the foregoing, no such information
shall be used by any such Person in connection with any market transactions in securities of the
Company or its subsidiaries in violation of law or regulation; and (iii) will not file any
Registration Statement to which Selling Holders holding a Majority of the Registrable Securities
covered by such Registration Statement or the underwriters, if any, or Holders Counsel shall
reasonably object with three (3) Business Days (or such shorter time period as is practicable and
of which notice is given to such Selling Holders).

(b) use its commercially reasonable efforts to prepare and file with the Commission such
amendments (including post-effective amendments) to the Registration Statement and such supplements
to the related prospectus as may be necessary to cause such Registration Statement to become
effective within, and to keep such Registration Statement effective for, the time periods provided
herein; and comply in all material respects with the provisions of the Securities Act and the
Exchange Act applicable thereto with respect to the disposition of all securities covered by such
Registration Statement until such time as all of such securities have been disposed of in
accordance with the intended methods of disposition by the seller or sellers thereof set forth in
such Registration Statement;

(c) cooperate and assist in any filings required to be made with FINRA;

(d) furnish to each Selling Holder and to each underwriter, if any, such number of copies of
such Registration Statement, each amendment and post-effective amendment thereto, the related
prospectus included in such Registration Statement (including each preliminary prospectus and any
supplement to such prospectus and any other prospectus filed under Rule 424 of the Securities Act),
in each case including all exhibits, and such other documents as such Holder may reasonably request
in order to facilitate the disposition of the Registrable Securities owned by such Holder or to be
disposed of by such underwriter (the Company hereby consenting to the use in accordance with all
applicable law of each such Registration Statement (or amendment or post-effective amendment
thereto) and each such prospectus (or preliminary prospectus or supplement thereto) by each such
Holder and the underwriters, if any, in connection with the offering and sale of the Registrable
Securities covered by such Registration Statement or prospectus);

 

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(e) use its commercially reasonable efforts to register or qualify and, if applicable, to
cooperate with the Selling Holders, the underwriters, if any, and their respective counsel in
connection with the registration or qualification (or exemption from such registration or
qualification) of, the Registrable Securities for offer and sale under the securities or blue sky
laws of such jurisdictions as any Selling Holder or managing underwriters (if any) shall reasonably
request, to keep each such registration or qualification (or exemption therefrom) effective during
the period such Registration Statement is required to be kept effective and to do any and all other
acts or things necessary or advisable to enable the disposition in such jurisdictions of the
Securities covered by the applicable Registration Statement; provided, that the Company
will not be required to (i) qualify generally to do business in any jurisdiction where it would not
otherwise be required to qualify but for this paragraph or (ii) consent to general service of
process in any such jurisdiction where it is not so subject;

(f) use its best efforts to cause all such Registrable Securities to be listed on each
securities exchange on which securities of the same class as the Registrable Securities are then
listed;

(g) provide or cause to be maintained a transfer agent and registrar for all such Registrable
Securities and use its commercially reasonable efforts to provide CUSIP number for all such
Registrable Securities not later than the effective date of such Registration Statement;

(h) comply with all applicable rules and regulations of the Commission, and make available to
its security holders an earnings statement satisfying the provisions of Section 11(a) of the
Securities Act and Rule 158 thereunder (or any similar rule promulgated under the Securities Act)
no later than forty-five (45) days after the end of any twelve (12) month period (or ninety (90)
days after the end of any twelve (12) month period if such period is a fiscal year) (or in each
case within such extended period of time as may be permitted by the Commission for filing the
applicable report with the Commission) (i) commencing on the first day of the fiscal quarter
following each fiscal quarter in which Registrable Securities are sold to underwriters in an
underwritten offering or (ii) if not sold to underwriters in such an offering, commencing on the
first day of the first fiscal quarter of the Company after the effective date of a Registration
Statement, which earnings statement shall cover said twelve (12) month periods;

(i) use its best efforts to prevent the issuance of any order suspending the effectiveness of
a Registration Statement or suspending the qualification (or exemption from qualification) of any
of the Registrable Securities included therein for sale in any jurisdiction, and, in the event of
the issuance of any stop order suspending the effectiveness of a Registration Statement, or of any
order suspending the qualification of any Registrable Securities included in such Registration
Statement for sale in any jurisdiction, the Company will use its best efforts promptly to obtain
the withdrawal or lifting of such order at the earliest possible time;

 

13

 

(j) use its best efforts (i) to obtain opinions of independent counsel to the Company and
updates thereof (which counsel and opinions (in form, scope and substance) shall be reasonably
satisfactory to the managing underwriters, if any, and not objected to by Selling Holders holding a
Majority of the Registrable Securities being sold), addressed to each Selling Holder and each of
the underwriters, if any, covering the matters customarily covered in opinions of issuer’s counsel
requested in underwritten offerings, such as the effectiveness of the Registration Statement and such other matters as may be reasonably requested by such counsel
and underwriters, if any, and (ii) to obtain “cold comfort” letters and updates thereof (which
letters and updates (in form, scope and substance) shall be reasonably satisfactory to the managing
underwriters, if any, and Holders Counsel) from the independent certified public accountants of the
Company (and, if necessary, any other independent certified public accountants of any subsidiary of
the Company or of any business acquired by the Company for which financial statements and financial
data are, or are required to be, included in the Registration Statement), addressed to each of the
underwriters, if any, and each Selling Holder, such letters to be in customary form and covering
matters of the type customarily covered in “cold comfort” letters in connection with underwritten
offerings and such other matters as the underwriters, if any, or Selling Holders holding a Majority
of the Registrable Securities being sold may reasonably request;

(k) notify the Selling Holders, Holders Counsel and the managing underwriters, if any:

(i) when a prospectus or any supplement or post-effective amendment to such prospectus
has been filed, and, with respect to a Registration Statement or any post-effective
amendment thereto, when the same has become effective,

(ii) of any request by the Commission or any other Federal or state governmental
authority for amendments or supplements to a Registration Statement or related prospectus or
for additional information,

(iii) of the issuance by the Commission of any stop order suspending the effectiveness
of a Registration Statement or of any order preventing or suspending the use of any
prospectus or the initiation of any proceedings by any Person for that purpose,

(iv) of the receipt by the Company of any notification with respect to the suspension
of the qualification or exemption from qualification of a Registration Statement or any of
the Registrable Securities for offer or sale under the securities or blue sky laws of any
jurisdiction, or the contemplation, initiation or threatening, of any proceeding for such
purpose,

(v) of the happening of any event that makes any statement made in such Registration
Statement or related prospectus untrue in any material respect or that requires the making
of any changes in such Registration Statement or related prospectus so that it will not
contain any untrue statement of a material fact or omit to state any material fact required
to be stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made (in the case of any prospectus), not misleading;
and

(vi) of the Company’s reasonable determination that a post-effective amendment to a
registration statement would be required;

 

14

 

(l) if requested by the managing underwriters, if any, or a Selling Holder, incorporate in a
prospectus, supplement or post-effective amendment such information as the managing underwriters,
if any, and Selling Holders holding a Majority of the Registrable
Securities being sold reasonably request to be included therein relating to the sale of the
Registrable Securities, including, without limitation, information with respect to the number of
shares of Registrable Securities being sold to underwriters, the purchase price being paid therefor
by such underwriters and with respect to any other terms of the underwritten offering of the
Registrable Securities to be sold in such offering, and make all required filings of such
prospectus, supplement or post-effective amendment promptly following notification of the matters
to be incorporated in such supplement or post-effective amendment;

(m) if requested, furnish to each Selling Holder and the managing underwriter, without charge,
at least one signed copy of the Registration Statement;

(n) upon the occurrence of any event contemplated by clause (k)(ii), (k)(v) or (k)(vi) above,
use its commercially reasonable efforts to prepare a supplement or post-effective amendment to the
Registration Statement, or file any other required document so that, as thereafter delivered to the
purchasers of the Registrable Securities being sold hereunder, the prospectus will not contain an
untrue statement of a material fact or an omission to state a material fact required to be stated
in a Registration Statement or related prospectus or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading, and, if Commission review is
required, use its commercially reasonable efforts to cause such post-effective amendment to be
declared effective as soon as practicable; and

(o) if such offering is an underwritten offering, enter into such agreements (including an
underwriting agreement in form, scope and substance as is customary in underwritten offerings and
reasonably satisfactory to the Company) and use its commercially reasonable efforts to take all
such other appropriate and reasonable actions requested by Selling Holders holding a Majority of
the Registrable Securities being sold in connection therewith or by the managing underwriters
(including cooperating in reasonable marketing efforts, including participation by senior
executives of the Company in any “roadshow” or similar meeting with potential investors) in order
to expedite or facilitate the disposition of such Registrable Securities, and in such connection,
provide indemnification provisions and procedures substantially to the effect set forth in
Section 8 hereof with respect to all parties to be indemnified pursuant to said Section.
The above shall be done at each closing under such underwriting or similar agreement, or as and to
the extent required thereunder.

Each Holder agrees by acquisition of such Registrable Securities that, upon receipt of written
notice from the Company of the happening of any event of the kind described in Section
5(k), such Holder will forthwith discontinue disposition of such Registrable Securities covered
by such Registration Statement until such Holder’s receipt of the copies of the supplemented or
amended Registration Statement contemplated by Section 5(n), or until it is advised in
writing (the “Advice”) by the Company that the use of the applicable prospectus may be resumed, and
has received copies of any additional or supplemental filings that are incorporated or deemed to be
incorporated by reference in such prospectus (such period during which disposition is discontinued
being an “Interruption Period”), and, if so directed by the Company, such Holder will deliver to
the Company (at the Company’s expense) all copies, other than permanent file copies then in such
Holder’s possession, of the prospectus covering such Registrable Securities current at the time of
receipt of such notice.

 

15

 

Section 6. Registration Expenses.

(a) Except as otherwise required by state securities laws or the rules and regulations
promulgated thereunder, all expenses, disbursements and fees incurred by the Company in connection
with carrying out its obligations under this Agreement, including but not limited to, (i) the
documented reasonable fees and expenses of Holders Counsel (plus local counsel), (ii) all
registration, filing fees and expenses (including fees with respect to filings made with FINRA and
the fees and expenses of any “qualified independent underwriter” and its counsel, as may be
required by the rules and regulations of FINRA), (iii) fees and expenses of compliance with
securities or blue sky laws (including fees and disbursements of counsel for the underwriters or
Selling Holders in connection with blue sky qualifications of the Registrable Securities and
determinations of their eligibility for investment under the laws of such jurisdiction as the
managing underwriters or Selling Holders of a Majority of the Registrable Securities being sold may
designate), (iv) printing expenses (including printing certificates for the Registrable Securities
to be sold and the registration statements and prospectuses), messenger and delivery expenses,
duplication expenses, word processing expenses, and telephone expenses, (v) fees and disbursements
of counsel for the Company, and (vi) fees and disbursements of all independent certified public
accountants of the Company incurred in connection with such registration (including the expenses of
any special audit and “cold comfort” letters incident to such registration) and fees and
disbursements of underwriters (excluding discounts, commissions or fees of underwriters, selling
brokers, dealer managers or similar securities industry professionals relating to the distribution
of the Registrable Securities) and other Persons retained by the Company (all such expenses being
herein called “Registration Expenses”), will be borne by the Company regardless of whether a
registration statement becomes effective; provided, however, that the Company will,
in any event, pay its internal expenses (including, without limitation, all salaries and expenses
of its officers and employees performing legal or accounting duties), the expenses of any annual
audit or quarterly review, the fees and expenses of any Person, including special experts, retained
by the Company, the expense of any liability insurance and the expenses and fees for listing the
securities to be registered on each securities exchange on which similar securities issued by the
Company are then listed; and provided, further, that each Selling Holder shall pay
(x) all costs and expenses of counsel (other than the counsel costs referred to in (i) and (iii)
above) and accounting or financing professionals retained by such Selling Holder, (y) all
underwriting discounts, commissions, fees and expenses and all transfer taxes with respect to the
securities sold by such Selling Holder, and (z) all other expenses incurred by such Selling Holder
and incidental to the sale and delivery of the securities to be sold by such Holder.

Section 7. Conditions to Holder’s Rights.

Fulfillment of the following obligations shall be a condition precedent to each Selling
Holder’s exercise of rights under this Agreement:

(a) Cooperation. Such Selling Holder shall cooperate with the Company by supplying
information and executing documents relating to such Selling Holder or the securities of the
Company owned by such Selling Holder in connection with such registration that are customary for
offerings of this type, including agreeing to sell such Selling Holder’s Registrable Securities on
the basis provided in any underwriting arrangements containing customary terms
reasonably satisfactory to such Selling Holder; provided, that no Selling Holder
included in any underwritten registration shall be required to make any representations or
warranties to the Company or the underwriters other than representations and warranties regarding
such Selling Holder’s intended method of distribution and other representations and warranties in
form, substance and scope as are customarily made by selling securityholders in underwriting
agreements for secondary underwritten public offerings; provided further, that no
Selling Holders, as such, shall be required to make any representation or warranty as to the
accuracy or completeness of the Registration Statement (except as to Furnished Information).

 

16

 

(b) Undertakings. Such Selling Holder shall enter into any undertakings and take such
other action not inconsistent with other provisions of this Agreement relating to the conduct of
the proposed offering that the Company or the underwriters may reasonably request (subject to
Section 7(a)) as being necessary to insure compliance with federal and state securities
laws and the rules or other requirements of FINRA or which the Company or the underwriters may
reasonably request to otherwise effectuate the offering (subject to Section 7(a)); and

(c) Indemnification. Such Selling Holder shall indemnify to the fullest extent
permitted by law and hold harmless the Company, the underwriter, if any, each of their respective
directors, officers, and each Person, if any, who controls the Company or such underwriter within
the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, to the same
extent as the indemnity from the Company set forth in Section 8(a) below, but only with
respect to written information about or pertaining to such Selling Holder furnished by such Selling
Holder to the Company expressly for inclusion in any Registration Statement, preliminary prospectus
or prospectus (or any amendment or supplement thereto) (the “Furnished Information”). In no event
shall the liability of any Selling Holder be greater in amount than the dollar amount of the
proceeds (net of payment of all expenses) received by such Selling Holder upon the sale of the
Registrable Securities giving rise to such indemnification obligation. The obligations of the
Selling Holders under this Section 7(c) are several, not joint.

Section 8. Indemnification.

(a) Indemnification by the Company. The Company shall indemnify to the fullest extent
permitted by law and hold each Holder, its directors, officers and each Person, if any, who
controls (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act
(any of such Persons being hereinafter referred to as a “controlling person”) each such Holder
against any and all losses, claims, damages, liabilities or expenses (including documented costs
including, without limitation, costs of preparation and attorneys’ fees and disbursements)
(collectively “Losses”) to which they or any of them may become subject under the Securities Act or
any other statute or common law or otherwise, insofar as any such Losses shall arise out of, be
caused by or shall be based upon (i) any untrue statement or alleged untrue statement of a material
fact contained in any Registration Statement (or any amendment or supplement thereto), or the
omission or alleged omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, or (ii) any untrue statement or alleged
untrue statement of a material fact contained in any preliminary prospectus (as amended or
supplemented if the Company shall have filed with the SEC any amendment thereof or supplement
thereof), if used prior to the effective date of such Registration Statement, or contained in the
prospectus

 

17

 

(as amended or supplemented if the Company shall have filed with the Commission any amendment, thereof or supplement thereof, including the information
deemed part of such Registration Statement pursuant to Rule 430A promulgated under the Securities
Act), if used within the period during which the Company shall be required to keep the Registration
Statement to which such prospectus relates current pursuant to the terms of this Agreement, or the
omission or alleged omission to state therein (if so used) a material fact necessary in order to
make the statements therein, in light of the circumstances under which they were made, not
misleading; provided, however, that the indemnity agreement contained in this
Section 8 shall not apply to amounts paid in settlement of any such Loss if such settlement
is effected without the consent of the Company (which consent shall not be unreasonably withheld,
delayed or conditioned), nor shall the Company be liable in any such case for any such Loss by any
Holder to the extent that arises out of or is based upon the Furnished Information. The Company
shall also indemnify underwriters, selling brokers, dealer managers and similar securities industry
professionals participating in the distribution, their directors, officers and each of their
respective controlling persons to the same extent as provided above with respect to each Holder.
This indemnity shall be in addition to any other indemnification arrangements to which the Company
may otherwise be a party.

(b) Conduct of Indemnification Proceedings. Any Person entitled to indemnity under
this Agreement (an “Indemnified Party”) shall give prompt written notice to the party from which
such indemnity is sought (the “Indemnifying Party”) of any claim or of the commencement of any
proceeding with respect to which such Indemnified Party seeks indemnification or contribution
pursuant hereto; provided, that the failure so to notify the Indemnifying Party shall not
relieve the indemnifying party from any obligation or liability except to the extent that the
Indemnifying Party has been materially prejudiced by such failure. The Indemnifying Party shall
have the right exercisable by giving written notice to an Indemnified Party promptly after the
receipt of written notice from such Indemnified Party of such claim or proceeding to assume, at the
Indemnifying Party’s expense, the defense of any such claim or proceeding, with counsel reasonably
satisfactory to such Indemnified Party. Any Indemnified Party shall have the right to employ
separate counsel in any such claim or proceeding and to participate in the defense thereof, but the
fees and expenses of such counsel shall be at the expense of such Indemnified Party unless: (1) the
Indemnifying Party agrees in writing to pay such fees and expenses; or (2) the Indemnifying Party
fails promptly to assume the defense of such claim or proceeding or fails to employ counsel
reasonably satisfactory to such Indemnified Party; or (3) the named parties to any such action
(including any impleaded parties) include both the Indemnified party and the Indemnifying party,
and the Indemnified Party shall have been advised by counsel that there may be one or more defenses
available to such Indemnified Party that are different from or additional to those available to the
Indemnifying Party or its affiliates, in which case, if such Indemnified Party notifies the
Indemnifying Party in writing that it elects to employ separate counsel at the expense of the
Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense of the
Indemnified Party thereof, it being understood, however, that the Indemnifying Party shall not, in
connection with any one such claim or proceeding, or separate but substantially similar or related
claims or proceedings arising out of the same general allegations or circumstances, be liable for
the fees and expenses of more than one separate firm of attorneys (together with any necessary
local counsel which such counsel shall be designated by the Indemnified Party and be reasonably
acceptable to the Indemnifying Party) at any time for such Indemnified Party. No Indemnifying
Party shall, without the prior written consent of the Indemnified Party (which consent shall not be unreasonably withheld), effect any settlement or compromise of, or consent to the entry of
judgment with respect to, any pending or threatened action in respect of which the Indemnified
Party is or could have been a party and indemnity or contribution may be or could have been sought
hereunder by the Indemnified Party, unless such settlement, compromise or judgment (i) includes an
unconditional release of the indemnified party from all liability on claims that are or could have
been the subject matter of such action, and (ii) does not include a statement as to or an admission
of fault, culpability or a failure to act, by or on behalf of the Indemnified Party.

 

18

 

(c) Individual Obligations. The Indemnifying Party’s liability to any Indemnified
Party hereunder shall not be extinguished solely because any other Indemnified Party is not
entitled to indemnity hereunder.

(d) Contribution.

(i) If the indemnification provided for in this Section 8 or Section 7(c) is
unavailable to an Indemnified Party in respect of any Losses or is insufficient to hold such
Indemnified Party harmless, then, except to the extent that contribution is not permitted
under Section 11(f) of the Securities Act, each applicable Indemnifying Party shall
contribute to the amount paid or payable by such Indemnified Party as a result of such
Losses, (A) in such proportion as is appropriate to reflect the relative benefits received
by the Company, on the one hand, and the Holders, on the other hand, from their sale of
Registrable Securities, or (B) if the allocation provided by this clause 8(d)(i)(A) is not
permitted by applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in this clause 8(d)(i)(A) but also the relative fault of the
Company, on the one hand, and of the Holder, on the other hand, in connection with the
statements or omissions which resulted in such Losses, as well as any other relevant
equitable considerations. The relative fault of such Indemnifying Party, on the one hand,
and such Indemnified Party, on the other hand, shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information supplied by the
Company, on the one hand, or by the Holder, on the other hand, and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent such
statement or omission. The amount paid or payable by a party as a result of any Losses
shall be deemed to include, subject to the limitations set forth in Section 8(b) hereof, any
legal or other fees or expenses reasonably incurred by such party in connection with any
investigation or proceeding.

(ii) The parties hereto agree that it would not be just and equitable if contribution
pursuant to this Section 8(d) were determined by pro rata allocation (even if the
Holders were treated as one entity for such purpose) or by any other method of allocation
that does not take into account the equitable considerations referred to in the immediately
preceding paragraph. Notwithstanding the provisions of this Section 8(d), no
Indemnifying Party that is a Holder shall be required to contribute, in the aggregate, any
amount in excess of the amount by which the total amount received by such Holder with
respect to the sale of Registrable Securities pursuant to a Registration Statement exceeds
the sum of: (i) the amount paid by such Holder for such Registrable Securities plus (ii) the
amount of any damages that such Holder has otherwise paid or become liable
to pay by reason of any untrue or alleged untrue statement or omission or alleged
omission. No Person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Act) shall be entitled to contribution from any Person who was not guilty of
such fraudulent misrepresentation. The Holders’ obligations to contribute pursuant to this
Section 8(d) are several in proportion to the respective amount of Registrable
Securities held by each Holder hereunder and not joint.

 

19

 

(e) Non-Exclusive Remedy; Survival. The indemnity and contribution agreements
contained in this Section 8 are in addition to any liability that the Indemnifying Parties
may have to the Indemnified Parties. The indemnity and contribution agreements contained in this
Section 8 will remain in full force and effect regardless of any investigation made by or
on behalf of any Indemnified Party, and will survive the transfer of securities.

Section 9. Rule 144

The Company will file the reports required to be filed by it under the Securities Act and the
Exchange Act and the rules and regulations adopted by the SEC thereunder (or, if the Company is not
required to file such reports, will, upon the request of the Holders, make publicly available other
information) and will take such further action as the Holders may reasonably request, all to the
extent required from time to time to enable the Holders to sell the Registrable Securities without
registration under the Securities Act within the limitation of the exemptions provided by (i) Rule
144 under the Securities Act, as such rule may be amended from time to time or (ii) any similar
rule or regulation hereafter adopted by the SEC.

Section 10. Underwritten Registrations.

(a) Demand Registration. In the case of any underwritten offering pursuant to
Section 2, the Holders of a Majority of the Registrable Securities initially requesting a
Registration shall select the institution or institutions that shall manage or lead the offering or
placement, subject to the reasonable satisfaction of the Company.

(b) Piggyback Registrations. In the case of any underwritten offering pursuant to
Section 3, the Registrable Securities proposed to be registered and sold for the account of
any Selling Holder shall be sold to prospective underwriters selected or approved by the Company,
and on the terms and subject to the conditions of one or more underwriting agreements negotiated
between the Company, the Holders, if any, and/or Other Security Holders requesting registration and
such prospective underwriters.

Section 11. Kojaian Registration Statement

During the term of this Agreement, the Company shall use its commercially reasonable efforts
to keep the securities that are registrable under the Kojaian Registration Rights Agreement
registered for resale under the Securities Act for so long as such securities are subject to the
Kojaian Registration Rights Agreement.

 

20

 

Section 12. Miscellaneous.

(a) Remedies. Any Person having rights under any provision of this Agreement will be
entitled to enforce such rights specifically to recover damages caused by reason of any breach of
any provision of this Agreement and to exercise all other rights granted by law. Except as
otherwise provided in the last sentence of Section 3(a), the parties hereto agree and
acknowledge that money damages may not be an adequate remedy for any breach of the provisions of
this Agreement and hereby agree to waive the defense in any action for specific performance or
injunctive relief that a remedy at law would be adequate. Accordingly, except as otherwise
provided in the last sentence of Section 3(a), any party may in its sole discretion apply
to any court of law or equity of competent jurisdiction (without posting any bond or other
security) for specific performance and for other injunctive relief in order to enforce or prevent
violation of the provisions of this Agreement.

(b) Amendments and Waivers. Except as otherwise provided herein, the provisions of
this Agreement, including the provisions of this sentence, may be amended, modified, supplemented
or waived only upon the prior written consent of the Company and the Majority Holders.
Notwithstanding the foregoing, a waiver or consent to depart from the provisions hereof with
respect to a matter that relates exclusively to the rights of Holders whose securities are being
sold pursuant to a Registration Statement and that does not directly or indirectly affect the
rights of other Holders may be given by Holders of at least a Majority of the Registrable
Securities being sold by such Holders pursuant to such Registration Statement, provided
that the provisions of this sentence may not be amended, modified or supplemented except in
accordance with the provisions of the immediately preceding sentence.

(c) Successors and Assigns. All covenants and agreements in this Agreement by or on
behalf of any of the parties hereto will bind and inure to the benefit of the respective successors
and assigns of the parties hereto whether so expressed or not, including without limitation and
without the need for an express assignment, subsequent Holders. If any transferee of any Holder
shall acquire Registrable Securities in any manner, whether by operation of law or otherwise, such
Registrable Securities shall be held subject to all of the terms of this Agreement, and by taking
and holding such Registrable Securities such Person shall be conclusively deemed to have agreed to
be bound by and to perform all of the terms and provisions of this Agreement, including the
restrictions on resale set forth in this Agreement and, if applicable, the Warrant Agreements, and
such Person shall be entitled to receive the benefits hereof.

(d) Severability. In the event that any one or more of the provisions contained
herein, or the application thereof in any circumstances, is held invalid, illegal or unenforceable
in any respect for any reason, the validity, legality and enforceability of any such provision in
every other respect and of the remaining provisions hereof shall not be in any way impaired or
affected, it being intended that the rights and privileges of the parties hereto shall be
enforceable to the fullest extent permitted by law.

(e) Counterparts. This Agreement may be executed in any number of counterparts, any
one of which need not contain the signatures of more than one party, but each of which when so
executed shall be deemed to be an original and all such counterparts taken together shall
constitute one and the same Agreement.

 

21

 

(f) Descriptive Headings; Interpretation. The descriptive headings of this Agreement
are inserted for convenience of reference only and shall not limit or otherwise affect the meaning
hereof. The use of the word “including” in this Agreement shall be by way of example rather than
by limitation.

(g) Notices. All notices, demands or other communications to be given or delivered
under or by reason of the provisions of this Agreement shall be made in writing by hand-delivery,
first-class mail (registered or certified, return receipt requested), telex, facsimile, e-mail PDF
or air courier guaranteeing overnight delivery: 

(i) if to any Initial Holder, at the address or facsimile number set forth on the
signature pages hereto (or such other address or addresses as such Initial Holder may have
advised the Company in the manner provided herein), with a copy to Skadden, Arps, Slate,
Meagher & Flom LLP, 300 S. Grand Avenue, Suite 3400, Los Angeles, California 90071,
Facsimile No. (213) 621-5379, Attention: Rick C. Madden, Esq. (rick.madden@skadden.com);
and

(ii) if to the Company, to 1551 N. Tustin Ave., Suite #300, Santa Ana, California
92705, Facsimile No. (866) 924-1897, Attention: Michael J. Rispoli, Executive Vice
President and Chief Financial Officer (or such other address or addresses as the Company
may have advised a Initial Holder in the manner provided herein), with a copy to Zukerman
Gore Brandeis & Crossman LLP, 875 Third Avenue, 28th Floor, New York, New York
10022, Facsimile No. (212) 223-6433, Attention: Clifford A. Brandeis, Esq.
(cbrandeis@zgbcllp.com).

All such notices and communications shall be deemed to have been duly given: at the time delivered
by hand, if personally delivered; five Business Days after being deposited in the mail, postage
prepaid, if mailed; when receipt acknowledged, if sent by facsimile or e-mail PDF; and on the next
Business Day, if timely delivered to an air courier guaranteeing overnight delivery.

(h) Publicity. Except as otherwise required by applicable federal securities laws, or
as otherwise agreed to by the parties, none of the parties hereto shall issue any press release or
make any other public statement, filing or disclosure relating to, in connection with or arising
out of this Agreement or the transactions contemplated herein. Any public statement, filing or
disclosure so issued or made by either party shall require the prior approval, not to be
unreasonably withheld, delayed or conditioned, of the other party hereto as to the contents and the
manner of presentation and publication thereof.

(i) Authority. Each of the parties hereto represents to the other that (a) it has the
corporate power and authority to execute, deliver and perform this Agreement, (b) the execution,
delivery and performance of this Agreement by it has been duly authorized by all necessary
corporate action and no such further action is required, (c) it has duly and validly executed and
delivered this Agreement, and (d) this Agreement is a legal, valid and binding obligation,
enforceable against it in accordance with its terms subject to applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting creditors’ rights generally and general
equity principles.

 

22

 

(j) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW
YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN THE STATE OF NEW YORK, INCLUDING SECTIONS
5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW AND RULE 327(B) OF THE NEW YORK CIVIL
PRACTICE LAW AND RULES, WITHOUT GIVING EFFECT TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF THAT
WOULD REQUIRE THE APPLICATION OF ANOTHER STATE’S LAWS.

(k) Entire Agreement. This Agreement is intended by the parties as a final expression
of their agreement and intended to be a complete and exclusive statement of the agreement and
understanding of the parties hereto in respect of the subject matter contained herein. This
Agreement supersedes all prior agreements and understandings between the parties with respect to
such subject matter.

[Signature Pages Follow]

 

23

 

IN WITNESS WHEREOF the parties hereto have or have caused this Registration Rights Agreement
to be duly executed as of the date first above written.

	 	 	 	 	 
	 	Grubb & Ellis Company

 	 
	 	By:  	
/s/ Michael Rispoli	 
	 	 	Name:  	Michael Rispoli	 
	 	 	Title:  	Chief Financial Officer	 

 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	CDCF II GNE Holding, LLC	 	 
	 	 	Initial Holder	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Mark M. Hedstrom	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Mark M. Hedstrom	 	 
	 	 	 	 	Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	CFI GNE Warrant Investor, LLC	 	 
	 	 	Initial Holder	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By: CFI RE Holdco, LLC, its managing member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By: Colony Financial, Inc., its managing member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Mark M. Hedstrom
	 

	 	 	 	 	 	 

Mark M. Hedstrom
	 	 
	 

	 	 	 	 	 	Vice President	 	 

 

 

 

Schedule I

List of Initial Holders

CDCF II GNE Holding, LLC

CFI GNE Warrant Investor, LLC

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