Document:

exv10w13

 

EXHIBIT 10.13

____________, 2005

Deutsche Bank Securities Inc.

60 Wall Street, 44th floor

New York, NY 10005

          Re: Grubb & Ellis Realty Advisors, Inc.

Ladies and Gentlemen:

     This letter will confirm the agreement of the undersigned to purchase warrants (“Warrants”) of
Grubb & Ellis Realty Advisors, Inc. (“Company”) included in the units (“Units”) being sold in the
Company’s initial public offering (“IPO”) upon the terms and conditions set forth herein. Each
Unit is comprised of one share of Common Stock and two Warrants. The shares of Common Stock and
Warrants will not be separately tradable until 90 days after the effective date of the Company’s
IPO unless Deutsche Bank Securities Inc. (“Deutsche Bank”) informs the Company of its decision to
allow earlier separate trading.

     The undersigned agrees that on the date hereof it will enter into an agreement or plan in
accordance with the guidelines specified by Rules 10b5-1 under the Securities Exchange Act of 1934,
as amended (“Exchange Act”), with an independent broker-dealer (the “Broker”) registered under
Section 15 of Exchange Act which is neither affiliated with the Company, Deutsche Bank nor part of
the underwriting or selling group, pursuant to which the undersigned will place an irrevocable
order for the undersigned to collectively purchase through the Broker for the account of the
undersigned, during the forty (40) trading-day period commencing on the later of the date separate
trading of the Warrants commences or sixty (60) days after the end of the “restricted period” under
Regulation M (“Separation Date”), up to $2,000,000 of Warrants in the open market at market prices
not to exceed $0.70 per Warrant (“Maximum Warrant Purchase”). The undersigned shall instruct the
Broker to fill such order in such amounts and at such times as the Broker may determine, in its
sole discretion, during the forty (40) trading-day period described above.

     The Broker will promptly notify the undersigned of any purchase of Warrants hereunder so that
the undersigned can comply with applicable reporting requirements on a timely basis.

     The undersigned represents and warrants that it is not aware of any material nonpublic
information concerning the Company or any securities of the Company and is entering into this

 

 

agreement in good faith and not as part of a plan or scheme to evade the prohibitions of Rule
10b5-1. The undersigned agrees that while this agreement is in effect, it shall comply with the
prohibition set forth in Rule 10b5-1(c)(1)(i)(C) against entering into or altering a corresponding
or hedging transaction or position with respect to the Company’s securities. The undersigned
further agrees that it shall not, directly or indirectly, communicate any material nonpublic
information relating to the Company or the Company’s securities to any employee of the Broker. The
undersigned hereby confirms that it does not have, and shall not attempt to exercise, any influence
over how, when or whether to effect purchases of Warrants pursuant to this agreement.

     The undersigned agrees that neither it nor any of its affiliates shall sell or transfer the
Warrants until after the consummation by the Company of an acquisition, through a purchase, asset
acquisition or other business combination, of one or more commercial real estate properties and/or
assets including by acquisition of an operating company, and acknowledges that the certificates for
such Warrants shall contain a legend indicating such restriction on transferability.

     THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK, INCLUDING, WITHOUT LIMITATION, SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL
OBLIGATIONS LAW AND NEW YORK CIVIL PRACTICE LAWS AND RULES 327(B).

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	GRUBB & ELLIS COMPANY
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

	 	 	 	 	 
	ACKNOWLEDGED AND AGREED:	 	 
	 
	 	 	 	 
	DEUTSCHE BANK SECURITIES INC.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:exv10w14

 

EXHIBIT 10.14

MASTER AGREEMENT

for

SERVICES

between

GRUBB & ELLIS REALTY ADVISORS, INC.

and

GRUBB & ELLIS COMPANY

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	1.	 	Term of Agreement	 	 	1	 
	2.	 	Representation	 	 	2	 
	3.	 	Scope of Agreement	 	 	2	 
	 
	 	a.	 	Request for Services	 	 	2	 
	 
	 	b.	 	Pricing	 	 	3	 
	 
	 	c.	 	Duty to Cooperate	 	 	3	 
	 
	 	d.	 	Consultant Personnel	 	 	3	 
	 
	 	e.	 	No Authority to Execute Agreements	 	 	3	 
	 
	 	f.	 	Meetings and Written Reports	 	 	4	 
	4.	 	Approval of Contracts	 	 	4	 
	5.	 	Independent Contractor	 	 	4	 
	6.	 	Termination	 	 	4	 
	7.	 	Indemnification	 	 	4	 
	8.	 	Assignment	 	 	5	 
	9.	 	Notices	 	 	5	 
	10.	 	Compliance With Laws	 	 	6	 
	11.	 	Waivers and Amendments	 	 	6	 
	12.	 	Order of Precedence	 	 	6	 
	13.	 	Disclosures	 	 	6	 
	 
	 	a.	 	Americans With Disabilities Act	 	 	6	 
	 
	 	b.	 	Hazardous Materials	 	 	7	 
	 
	 	c.	 	Tax Disclosures	 	 	7	 
	 
	 	d.	 	Year 2000 Disclosures	 	 	8	 
	14.	 	Governing Law	 	 	8	 
	15.	 	Severability	 	 	8	 
	16.	 	Survival	 	 	8	 
	17.	 	Entire Agreement	 	 	8	 
	18.	 	Counterpart Execution	 	 	9	 

EXHIBIT “A” Request for Services

 

 

MASTER AGREEMENT FOR SERVICES

This
MASTER AGREEMENT FOR SERVICES (“Agreement”) is made as of ______ 2005
(“Effective Date”) by and between GRUBB & ELLIS COMPANY, a Delaware Corporation (“Consultant”), and
GRUBB & ELLIS REALTY ADVISORS, INC., a Delaware corporation (“Client”), with reference to the facts
set forth in the Recitals below:

RECITALS

	A.	 	Client is a corporation which has acquired or desires to acquire real property for investment
purposes.
	 
	B.	 	Consultant is a corporation which together with its affiliates and subsidiaries is engaged in
the business of providing commercial real estate brokerage, property and facilities management
and real estate consulting services.
	 
	C.	 	Client desires to retain Consultant to perform the commercial real estate brokerage and
consulting services herein defined.
	 
	D.	 	Client and Consultant desire to set forth their understanding and agreement with respect to
such services, the compensation to be paid to Consultant, and other matters related to such
services, on the terms and conditions set forth below in this Agreement.

AGREEMENT

NOW, THEREFORE, in consideration of the facts set forth in the Recitals above, the mutual covenants
and conditions below, and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties agree as follows:

	1.	 	Term of Agreement. This Agreement shall remain in full force and effect for a term of five
(5) years following the Effective Date, unless terminated as provided below in this Agreement.
Client may, in its discretion, elect to extend the term of this agreement for an additional
period of three years by providing written notice of such election to Consultant not less than
thirty days prior to the expiration of the initial term.
	 
	2.	 	Representation. Client hereby appoints Consultant as its exclusive agent in the United
States and worldwide with respect to providing the Services hereinafter described, subject to
the terms and conditions set forth in this Agreement. The term Services as used herein shall
mean:

1

 

MASTER AGREEMENT FOR SERVICES

	 	a.	 	Commercial real estate brokerage and consulting services relating to real
property acquisitions, including, without limitation, by (land and building) sales and
purchase agreements, joint ventures, long term ground leases or otherwise, all pursuant
to a process involving market studies, RFP solicitations and evaluation and contract
negotiations (each an “Acquisition” or “Acquisition Services”).
	 
	 	b.	 	Commercial real estate brokerage and consulting services relating to the sale
or disposition of real property or interests therein pursuant to a process involving
market studies, RFP solicitations, evaluation and lease/sublease/contract negotiations
(each a “Disposition” or “Disposition Service”).
	 
	 	c.	 	Agency Leasing Services (“Leasing Services”) relating to the leasing of space
within any properties owned or acquired by Client during the term of this Agreement.
	 
	 	d.	 	Such other real estate brokerage or consulting services which Client may
require and which Consultant may agree to provide (“Consulting Services”).

	 	 	Client shall appoint a principal representative responsible for maintaining liaison with
Consultant. The designated principal representative for Client (“Client Representative”)
shall be ______, whose address for notices is set forth in Section 9 below. The
designated principal representative for Consultant (“Consultant Representative”) shall be
______, whose address for notices is set forth in Section 9 below.
	 
	3.	 	Scope of Agreement

	 	a.	 	Request for Services. The parties shall authorize the performance of Services
by issuing written Requests of Services from time to time in substantially the form of
the attached Exhibit “A.” A Request for Services shall be valid only when duly
executed by the Client Representative and the Consultant Representative.
Notwithstanding the foregoing, it is understood that a Request for Services may be
issued electronically, and in such instance will be deemed to have been duly executed
when forwarded electronically by one party and electronically accepted and acknowledged
by the other party. Once the Request for Services is so executed by both parties,
Consultant shall perform the Services in accordance with the terms and conditions set
forth in such Request for Services and in this Agreement. Each Request for Services
shall be subject to the terms and conditions of this Agreement. The term “Services”
shall include all labor and/or materials furnished by Consultant.
	 
	 	b.	 	Pricing. For Acquisition Services, Disposition Services or Leasing Services,
Consultant shall earn fees and commissions in accordance with the customary

2

 

MASTER AGREEMENT FOR SERVICES

	 	 	 	prevailing rates in the market where the property is located, pursuant to disclosure
to and approval by Client.
	 
	 	 	 	Pricing for Consulting Services shall be agreed upon from time to time based on the
nature of the services requested.
	 
	 	 	 	With respect to Acquisition Services, where custom or practice provides that the
seller shall pay the buyer’s commission, Consultant shall use best efforts to secure
the agreement of the seller to pay a market rate commission. Client shall support
Consultant in its efforts to obtain a commission from the seller. If the seller
refuses to pay a commission to Consultant, Client shall pay a market rate commission
to Consultant.
	 
	 	 	 	With respect to Disposition Services and Leasing Services, if the custom and
practice in the particular market provides that one commission will be paid if the
transaction is completed without the assistance of a cooperating broker, and a
larger commission will be paid when the transaction is completed with the assistance
of the cooperating broker, any real estate broker employed by or affiliated with
Consultant who is not assigned to the leasing or listing team representing Client
but who represents a prospective purchaser or tenant shall be considered an outside
co-broker for the purposes of computing the applicable commission.
	 
	 	 	 	In transactions where Client is responsible for the payment of fees and/or
reimbursable amounts to Consultant, Consultant shall deliver invoices to Client on a
monthly basis. Travel expenses, when approved in advance by Client, will be
reimbursed. Client agrees not to unreasonably withhold approval of travel expenses.
All amounts invoiced by Consultant shall be due and payable by Client upon receipt
of the invoice.
	 
	 	c.	 	Duty To Cooperate. Client shall assist and cooperate with Consultant and
Consultant’s personnel whenever necessary by making Client’s personnel available to
Consultant for consultation, and providing other information and data reasonably
necessary for the performance of the Services whenever such personnel, information and
data are reasonably available to Client.
	 
	 	d.	 	No Authority to Execute Agreements. Notwithstanding anything in this Agreement
to the contrary, Consultant shall have no right or power to enter into any agreement in
the name of or on behalf of Client, or to otherwise obligate Client in any manner,
without the prior written consent and approval of Client.

3

 

MASTER AGREEMENT FOR SERVICES

	 	e.	 	Meetings and Written Reports. Consultant shall periodically meet with and
deliver written reports to the Client Representative regarding the status of all
Acquisition and Disposition transactions.

	4.	 	Approval of Contracts. All of the terms and conditions of each and every purchase agreement,
sale agreement, lease and other contract proposed by Consultant shall be subject to the
approval of Client.
	 
	5.	 	Independent Contractor. This Agreement does not establish an employer-employee relationship
between Client and Consultant. Consultant’s personnel are not employees or agents of Client,
and Consultant retains the right to exercise full control and supervision over the
performance, employment, direction, compensation and discharge of any and all of Consultant’s
obligations. Consultant shall be solely responsible for all matters relating to payment of
Consultant’s personnel, including compliance with workers’ compensation, unemployment,
disability insurance, social security, withholding and all other federal, state and local
laws, rules and regulations governing such matters.
	 
	6.	 	Termination. Either party may terminate this Agreement if the other party fails, in any
material respect, to perform its obligations under this Agreement and such failure continues
uncured for a period of thirty days after written notice of such failure is delivered to the
defaulting party, provided that such notice shall describe with reasonable specificity the
nature of the alleged failure of performance. If this Agreement shall expire or be terminated
as provided above, Client shall continue to recognize Consultant in any transaction which may,
on the effective date of termination, be in the “course of negotiation” by Consultant and
Consultant shall be paid according to the terms and conditions of this Agreement and the
applicable Request for Services for any such transaction. The phrase “course of negotiation”
shall mean (a) the transaction was presented to Client and actively negotiated during the term
of this Agreement and (b) the contract for such Acquisition or Disposition transaction is
executed by Client within one hundred eighty (180) days after termination of this Agreement.
Consultant shall submit a list of any and all such transactions which are in the “course of
negotiation” to Client within twenty (20) days after the effective date of termination of this
Agreement.
	 
	7.	 	Assignment. None of Consultant’s duties under this Agreement or under any Request for
Services may be assigned or delegated without the prior written consent of the Client, which
shall not unreasonably be withheld (Client acknowledges and agrees that certain Services may
be performed by Consultant’s affiliates, strategic allies, licensees, subcontractors and
co-brokers). Any attempted assignment of the foregoing by Consultant shall be void, and Client
may, in addition to all other rights and remedies provided by law or this Agreement, terminate
this Agreement effective upon delivery of notice to Consultant. Client shall not have the
right to assign this Agreement. Any attempted

4

 

MASTER AGREEMENT FOR SERVICES

	 	 	assignment of the foregoing by Client shall be void, and Consultant may, in addition to all
other rights and remedies provided by law or this Agreement, terminate this Agreement
effective upon delivery of notice to Client.
	 
	8.	 	Notices. All notices, requests, consents, approvals, payments in connection with this
Agreement, or communications which either party desires or is required or permitted to give or
make to the other party under this Agreement shall be deemed to have been given, made and
delivered, only when made or given in writing and personally served, or deposited in the
United States mail, certified or registered mail, postage prepaid, or sent by reputable
overnight courier (e.g., Airborne Express), or by facsimile with electronic confirmation, and
addressed to the parties as follows:

	 	 	 	 	 
	 

	 	to Client:
	 	Grubb & Ellis Realty Advisors, Inc.
	 

	 	 	 	2215 Sanders Road, 4th Floor
	 

	 	 	 	Northbrook, Illinois 60062
	 

	 	 	 	Attn.:
	 

	 	 	 	Fax: (847) 753-9034
	 
	 	 	 	 
	 

	 	to Consultant:
	 	Grubb & Ellis Company
	 

	 	 	 	2215 Sanders Road, 4th Floor
	 

	 	 	 	Northbrook, Illinois 60062
	 

	 	 	 	Attn.:
	 

	 	 	 	Fax: (847) 753-9034
	 
	 	 	 	 
	 

	 	with copy to:
	 	Grubb & Ellis Company
	 

	 	 	 	2215 Sanders Road, 4th Floor
	 

	 	 	 	Northbrook, Illinois 60062
	 

	 	 	 	Attn.: General Counsel
	 

	 	 	 	Fax: (847) 753-9034

	9.	 	Compliance With Laws. Consultant hereby represents that Consultant and all Consultant’s
personnel, including, without limitation, its employees, affiliates, agents and co-brokers
providing Services are, to the extent required by applicable law, are duly licensed or
otherwise authorized under the laws of each state in which the Services are being and to be
performed. In jurisdictions where Consultant is not duly licensed to perform the Services set
forth in a Request for Services, Consultant shall associate with a broker or other entity
which is licensed to perform the Services at no additional cost or

5

 

MASTER AGREEMENT FOR SERVICES

	 	 	expense to Client. Consultant shall cause all of its personnel to pay such taxes and fees
applicable to each of them and to comply with all laws, statutes, ordinances and regulations
applicable to them with respect to performing the Services. Consultant agrees to comply
with all applicable federal, state and local laws, regulations, and codes in the performance
of the Services and this Agreement.
	 
	10.	 	Waivers and Amendments. Waiver by either party of any default by the other party shall not
be deemed a waiver of any other default. No provision of this Agreement or any Request for
Services shall be deemed waived, amended, or modified by either party, unless it is in writing
and signed by both parties.
	 
	11.	 	Order of Precedence. In the event of any conflict or inconsistency between provisions of
this Agreement and the provisions of a Request for Services, the provisions of this Agreement
shall control.
	 
	13.	 	Disclosures.

	 	a.	 	Americans with Disabilities Act. The Americans With Disabilities Act is
intended to make many business establishments equally accessible to persons with a
variety of disabilities; modifications to real property may be required. State and
local laws also may mandate changes. Consultant’s personnel are not qualified to
advise you as to what, if any changes may be required now, or in the future. Owners
and tenants should consult the attorneys and qualified design professionals of their
choice for information regarding these matters. Consultant Personnel cannot determine
which attorneys or design professionals have the appropriate expertise in this area.
	 
	 	b.	 	Hazardous Materials. Various construction materials may contain items that
have been or may be in the future be determined to be hazardous (toxic) or undesirable
and may need to be specially treated, handled or removed. For example, some
transformers and other electrical components contain PCB’s, and asbestos has been used
in components such as fire-proofing, heating and cooling systems, air duct insulation,
spray-on and tile acoustical materials, linoleum, floor tiles, roofing, dry wall and
plaster. Due to prior or current uses of the property or in the area, a property may
have hazardous or undesirable metals (including lead-based paints), minerals,
chemicals, hydrocarbons, or biological or radioactive items (including electric and
magnetic fields) in soils, water, building components, above or below ground containers
or elsewhere in areas that may or may not be accessible or noticeable. Such items may
leak or otherwise be released. Real estate agents have no expertise in the detection or
correction of hazardous or undesirable items. Expert inspections are necessary.
Current or

6

 

MASTER AGREEMENT FOR SERVICES

	 	 	 	future laws may require clean up by past, present and/or future owners and/or
operators. It is the responsibility of the principal to retain qualified experts to
detect and correct such matters and to consult with legal counsel of its choice to
determine what provisions, if any, it may wish to include in transaction documents
regarding any property.
	 
	 	c.	 	Tax Disclosures. Sale, lease and other transactions can have local, state and
federal tax consequences for the seller/lessor and/or the buyer/tenant. In the event
of a sale, Internal Revenue Code Section 1445 requires that all buyers of an interest
in any real property located in the United States must withhold and pay over to the
Internal Revenue Service (IRS) an amount equal to ten percent (10%) of the gross sales
price within ten (10) days of the date of the sale unless the buyer can adequately
establish that the seller was not a foreigner, generally by having the seller sign a
non-foreign seller certificate. Note that depending upon the structure of the
transaction, the tax withholding liability could exceed the net cash proceeds to be
paid to the seller at closing. Consult your tax and legal advisor. Consultant
Personnel are not qualified to give legal or tax advice or to determine whether any
other person is properly qualified to provide legal or tax advice.

	14.	 	Governing Law. The Agreement will be governed by the laws of the State of Illinois,
irrespective of that state’s conflict of laws principles.
	 
	15.	 	Severability. If any provision, or any portion of any provision, contained in this Agreement
is held unenforceable, then it shall, to that extent alone, be deemed omitted and this
Agreement shall be construed as if such unenforceable provision had never been contained
herein.
	 
	16.	 	Survival. The terms, conditions, and warranties contained in this Agreement or any Request
for Services that are intended to survive the expiration or termination of this Agreement
shall survive.
	 
	17.	 	Entire Agreement. This Agreement constitutes the entire agreement between the parties with
respect to the subject matter hereof. All prior agreements, representations, statements,
negotiations, understandings, and undertakings are superseded by this Agreement.
	 
	18.	 	Counterpart Execution. This Agreement may be executed in multiple counterparts, each of
which shall be deemed to be an original and all or which together shall constitute one
document.

7

 

MASTER AGREEMENT FOR SERVICES

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their respective
duly authorized representatives.

	 	 	 	 	 
	CONSULTANT:	 	GRUBB & ELLIS COMPANY, a Delaware Corporation
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	CLIENT:	 	GRUBB & ELLIS REALTY ADVISORS, INC.,
	 
	 	 	 	 
	 	 	a Delaware Corporation
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

8

 

MASTER AGREEMENT FOR SERVICES

EXHIBIT “A”

REQUEST FOR SERVICES

	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Property ID#:	 	 
	 

	 
	 	 	 	 	 	 

	 	 	 	 	 	 	 
	Research:
	 	o
	 	Transaction
	 	o

	 	 	 	 	 	 	 	 	 
	          Phone;                                         	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Real Estate Contract:
	 	 	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 	 	 
	Project Phone #:

	 	 	 	 	 	Project Fax #:	 	 
	 

	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Operating Unit:

	 	 	 	 	 	Legal Entity:	 	 
	 

	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Facility Address:
	 	 	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 	 	 
	Facility Address:
	 	 	 	 	 	 	 	 
	 	 

	 	 	 	 	 	 	 	 	 	 	 
	City:

	 	 	 	State:
	 	 	 	Zip:	 	 
	 

	 
	 	 	 
	 	 	 

	 	 	 	 	 	 	 	 	 
	Primary Use:	 	o     Office	 	o     Warehouse	 	o     Distribution
	 
	 	 	 	 	 	 	 	 
	 

	 	o     Manufacturing
	 	o    Other	 	 	 	 
	 	 	 	 	 	 

	 	 	 
	Nature of Assignment:
	 	 
	 

	 

	 	 	 
	Proposed Completion Date:
	 	 
	 

	 

	 	 	 
	Requirements:
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

Please confirm receipt of this request by signing below and faxing to Grubb & Ellis Corporate
Services at ______.

APPROVALS:

 

MASTER AGREEMENT FOR SERVICES

	 	 	 	 	 	 	 
	 	 	 
	Grubb & Ellis Representative

	 	Date
	 	 	 	Date

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00094-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00094-of-00352.parquet"}]]