Document:

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                                                                   EXHIBIT 10.25

                                    Book 1463 of Photos, Page 581

3400-12                                                            Serial Number
(April 1986)                     UNITED STATES                        WYW 127221
                           DEPARTMENT OF THE INTERIOR       North Rochelle Tract
727983                      BUREAU OF LAND MANAGEMENT

                                   COAL LEASE                      (STAMP)
                                                               97 NOV -3 AM 9:00
                                                                   RECEIVED
                                                               CHEYENNE, WYOMING

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PART I: LEASE RIGHTS GRANTED

This lease, entered into by and between the United States of America,
hereinafter called the lessor, through the Bureau of Land Management, and
(Name and Address)

                               TRITON COAL COMPANY
                               50 JEROME LANE
                               FAIRVIEW HEIGHTS, ILLINOIS 62208

hereinafter called lessee, is effective (date) January 1, 1998 for a period of
20 years and for so long thereafter as coal is produced in commercial quantities
from the leased lands, subject to readjustment of lease terms at the end of the
20th lease year and each 10-year period thereafter.

SEC. 1. This lease is issued pursuant and subject to the terms and provisions of
the:

 X    Mineral Lands Leasing Act of 1920, Act of February 25, 1920, as amended,
---   41 Stat. 437, 30 U.S.C. 181-287, hereinafter referred to as the Act;

      Mineral Leasing Act for Acquired Lands, Act of August 7, 1947, 61 Stat.
---   913, 30 U.S.C. 351-359;

and to the regulations and formal orders of the Secretary of the Interior which
are now or hereafter in force, when not inconsistent with the express and
specific provisions herein.

SEC. 2. Lessor, in consideration of any bonuses, rents, and royalties to be
paid, and the conditions and covenants to be observed as herein set forth,
hereby grants and leases to lessee the exclusive right and privilege to drill
for, mine, extract, remove or otherwise process and dispose of the coal deposits
in, upon, or under the following described lands in Campbell County, Wyoming:

                      T.42 N., R. 70 W., 6th P.M., Wyoming
                        Sec. 4: Lots 5-16, 19 and 20;
                        Sec. 5: Lots 5-16;

                      T.43 N., R. 70 W., 6th P.M., Wyoming
                        Sec. 32: Lots 9-16;
                        Sec. 33: Lots 11-14.

containing 1481.93 acres, more or less, together with the right to construct
such works, buildings, plants, structures, equipment and appliances and the
right to use such on-lease rights-of-way which may be necessary and convenient
in the exercise of the rights and privileges granted, subject to the conditions
herein provided.

PART II. TERMS AND CONDITIONS

SEC. 1.(a) RENTAL RATE - Lessee shall pay lessor rental annually and in advance
for each acre or fraction thereof during the continuance of the lease at the
rate of $3.00 for each lease year.

(b) RENTAL CREDITS - Rental shall not be credited against either production or
advance royalties for any year.

SEC. 2.(a) PRODUCTION ROYALTIES - The royalty shall be 12 1/2 percent for coal
produced by strip or auger methods and 8 percent for coal produced by
underground mining methods of the value of the coal as set forth in the
regulations. Royalties are due to Lessor the final day of the month succeeding
the calendar month in which the royalty obligation accrues.

(b) ADVANCE ROYALTIES - Upon request by the Lessee, the authorized officer may
accept, for a total of not more than 10 years, the payment of advance royalties
in lieu of continued operation, consistent with the regulations. The advance
royalty shall be based on a percent of the value of a minimum number of tons
determined in the manner established by the advance royalty regulations in
effect at the time the lessee requests approval to pay advance royalties in lieu
of continued operation.

SEC. 3. BONDS - Lessee shall maintain in the proper office a lease bond in the
amount of $24,466,000. The authorized officer may require an increase in this
amount when additional coverage is determined appropriate.

SEC. 4. DILIGENCE - This lease is subject to the conditions of diligent
development and continued operation, except that these conditions are excused
when operations under the lease are interrupted by strikes, the elements, or
casualties not attributable to the lessee. The lessor, in the public interest,
may suspend the condition of continued operation upon payment of advance
royalties in accordance with the regulations in existence at the time of the
suspension. Lessee's failure to produce coal in commercial quantities at the end
of 10 years shall terminate the lease. Lessee shall submit an amended operation
and reclamation plan pursuant to Section 7 of the Act not later than 3 years
after lease issuance.

The lessor reserves the power to assent to or order the suspension of the terms
and conditions of this lease in accordance with, inter alia, Section 39 of the
Mineral Leasing Act, 30 U.S.C. 209.

SEC. 5. LOGICAL MINING UNIT (LMU) - Either upon approval by the lessor of the
lessee's application or at the direction of the lessor, this lease shall become
an LMU or part of an LMU, subject to the provisions set forth in the
regulations.

<PAGE>

                          Book 1463 of Photos, Page 582

                                                                       WYW127221
                                                                     Page 2 of 4

The stipulations established in an LMU approval in effect at the time of LMU
approval will supersede the relevant inconsistent terms of this lease so long as
the lease remains committed to the LMU. If the LMU of which this lease is a part
is dissolved, the lease shall then be subject to the lease terms which would
have been applied if the lease had not been included in an LMU.

SEC. 6. DOCUMENTS, EVIDENCE AND INSPECTION - At such times and in such form as
lessor may prescribe, lessee shall furnish detailed statements showing the
amounts and quality of all products removed and sold from the lease, the
proceeds therefrom, and the amount used for production purposes or unavoidably
lost.

Lessee shall keep open at all reasonable times for the inspection of any duly
authorized officer of the lessor, the leased premises and all surface and
underground improvements, works, machinery, ore stockpits, equipment, and all
books, accounts, maps, and records relative to operations, surveys, or
investigations on or under the leased lands.

Lessee shall allow lessor access to and copying of documents reasonably
necessary to verify lessee compliance with terms and conditions of the lease.

While this lease remains in effect, information obtained under this section
shall be closed to inspection by the public in accordance with the Freedom of
Information Act (5 U.S.C. 552).

SEC. 7. DAMAGES TO PROPERTY AND CONDUCT OF OPERATIONS - Lessee shall comply at
its own expense with all reasonable orders of the Secretary, respecting diligent
operations, prevention of waste, and protection of other resources.

Lessee shall not conduct exploration operations, other than casual use, without
an approved exploration plan. All exploration plans prior to the commencement of
mining operations within an approved mining permit area shall be submitted to
the authorized officer.

Lessee shall carry on all operations in accordance with approved methods and
practices as provided in the operating regulations, having due regard for the
prevention of injury to life, health, or property, and prevention of waste,
damage, or degradation to any land, air, water, cultural, biological, visual,
and other resources, including mineral deposits and formations of mineral
deposit not leased hereunder, and to other land uses or users. Lessee shall take
measures deemed necessary by lessor to accomplish the intent of this lease term.
Such measures may include, but are not limited to modification to proposed
siting or design of facilities, timing of operations, to itself the right to
lease, sell or otherwise dispose of the surface or other mineral deposits in the
lands and the right to continue existing uses and to authorized future uses upon
or in the leased lands, including issuing leases for minerals deposits not
covered hereunder, and approving easements or rights-of-way. Lessor shall
condition such uses to prevent unnecessary or unreasonable interference with
rights of lessee as may be consistent with concepts of multiple use and multiple
mineral development.

SEC. 8. PROTECTION OF DIVERSE INTEREST, AND EQUAL OPPORTUNITY - Lessee shall;
pay when due all taxes legally assessed and levied under the laws of the State
or the United States; accord all employees complete freedom of purchase; pay all
wages at lease twice each month in lawful money of the United States; maintain a
safe working environment in accordance with standard industry practices;
restrict the workday to not more than 8 hours in any one day for underground
workers except in emergencies; and take measure necessary to protect the health
and safety of the public. No person under the age of 16 years shall be employed
in any mine below the surface. To the extent that laws of the State in which the
lands are situated are more restrictive than the provisions in the paragraph,
then the State laws apply.

Lessee will comply with all provisions of Executive Order No. 11246 of September
24, 1965, as amended, and the rules, regulations, and relevant orders of the
Secretary of Labor. Neither lessee nor lessee's subcontractors shall maintain
segregated facilities.

SEC. 9.(a) TRANSFERS

 X    This lease may be transferred in whole or in part to any person,
---   association or corporation qualified to hold such lease interest.

      This lease may be transferred in whole or in part to another public body,
---   or to a person who will mine the coal on behalf of, and for the use of,
      the public body or to a person who for the limited purpose of creating a
      security interest in favor of a lender agrees to be obligated to mine the
      coal on behalf of the public body.

      This lease may only be transferred in whole or in part to another small
---   business qualified under 13 CFR 121.

Transfers of record title, working or royalty interest must be approved in
accordance with the regulations.

(b) RELINQUISHMENTS - The lessee may relinquish in writing at any time all
rights under this lease or any portion thereof as provided in the regulations.
Upon lessor's acceptance of the relinquishment, lessee shall be relieved of all
future obligations under the lease or the relinquished portion thereof,
whichever is applicable.

SEC. 10. DELIVERY OF PREMISES, REMOVAL OF MACHINERY, EQUIPMENT, ETC. - At such
times as all portions of this lease are returned to lessor, lessee shall deliver
up to lessor the land leased, underground timbering, and such other supports and
structures necessary for the preservation of the mine workings on the leased
premises or deposits and place all workings in condition for suspension or
abandonment. Within 180 days thereof, lessee shall remove from the premises all
other structures, machinery, equipment, tools, and materials that it elects to
or as required by the authorized officer. Any such structures, machinery,
equipment, tools, and materials remaining on the leased lands beyond 180 days,
or approved extension thereof, shall become the property of the lessor, but
lessee shall either remove any or all such property or shall continue to be
liable for the cost of removal and disposal in the amount actually incurred by
the lessor. If the surface is owned by third parties, lessor shall waive the
requirement for removal, provided the third parties do not object to such
waiver. Lessee shall, prior to the termination of bond liability or at any other
time when required and in accordance with all applicable laws and regulations,
reclaim all lands the surface of which has been disturbed, dispose of all debris
or solid waste, repair the offsite and onsite damage caused by lessee's activity
or activities incidental thereto, and reclaim access roads or trails.

SEC. 11. PROCEEDINGS IN CASE OF DEFAULT - If lessee fails to comply with
applicable laws, existing regulations, or the terms, conditions and stipulations
of this lease, and the noncompliance continues for 30 days after written notice
thereof, this lease shall be subject to cancellation by the lessor only by
judicial proceedings. This provision shall not be construed to prevent the
exercise by lessor of any other legal and equitable remedy, including waiver of
the default. Any such remedy or waiver shall not prevent later cancellation for
the same default occurring at any other time.

SEC. 12. HEIRS AND SUCCESSORS-IN-INTEREST - Each obligation of this lease shall
extend to and be binding upon, and every benefit hereof shall insure to the
heirs, executors, administrators, successors, or assigns of the respective
parties hereto.

SEC. 13. INDEMNIFICATION - Lessee shall indemnify and hold harmless the United
States from any and all claims arising out of the lessee's activities and
operations under this lease.

SEC. 14. SPECIAL STATUTES - This lease is subject to the Clean Water Act (33
U.S.C. 1252 el.seq.), the Clean Air Act (42 U.S.C. 1857 el. seq.), and to all
other applicable laws pertaining to exploration activities, mining operations
and reclamation, including the Surface Mining Control and Reclamation Act of
1977 (30 U.S.C. 1201 el. seq.)

<PAGE>

                          Book 1463 of Photos, Page 583

                                                                       WYW127221
                                                                     Page 3 of 4

SEC. 15. SPECIAL STIPULATIONS - In addition to observing the general obligations
and standards of performance set out in the current regulations, the lessee
shall comply with and be bound by the following stipulations. These stipulations
are also imposed upon the lessee's agents and employees. The failure or refusal
of any of these persons to comply with stipulations shall be deemed a failure of
the lessee to comply with the terms of the lease. The lessee shall require his
agents, contractors and subcontractors involved in activities concerning this
lease to include these stipulations in the contracts between and among them.
These stipulations may be revised or amended, in writing, by the mutual consent
of the lessor and the lessee at any time to adjust to changed conditions or to
correct an oversight.

(a) CULTURAL RESOURCES - (1) Before undertaking any activities that may disturb
the surface of the leased lands, the lessee shall conduct a cultural resource
intensive field inventory in a manner specified by the authorized officer of the
BLM or of the surface managing agency, if different, on portions of the mine
plan area and adjacent areas, or exploration plan area, that may be adversely
affected by lease-related activities and which were not previously inventoried
at such a level of intensity. The inventory shall be conducted by a qualified
professional cultural resource specialist (i.e., archeologist, historian,
historical architect, as appropriate), approved by the authorized officer of the
surface managing agency (BLM, if the surface is privately owned), and a report
of the inventory and recommendations for protecting any cultural resources
identified shall be submitted to the Assistant Director of the Western Support
Center of the Office of Surface Mining, the authorized officer of the BLM, if
activities are associated with coal exploration outside an approved mining
permit area (hereinafter called Authorized Officer), and the Authorized Officer
of the surface managing agency, if different. The lessee shall undertake
measures, in accordance with instructions from the Assistant Director, or
Authorized Officer, to protect cultural resources on the leased lands. The
lessee shall not commence the surface disturbing activities until permission to
proceed is given by the Assistant Director or authorized officer. (2) The lessee
shall protect all cultural resource properties within the lease area from
lease-related activities until the cultural resource mitigation measures can be
implemented as part of an approved mining and reclamation or exploration plan.
(3) The cost of conducting the inventory, preparing reports, and carrying out
mitigation measures shall be borne by the lessee. (4) If cultural resources are
discovered during operations under this lease, the lessee shall immediately
bring them to the attention of the Assistant Director or Authorized Officer, or
the Authorized Officer of the surface managing agency, if the Assistant Director
is not available. The lessee shall not disturb such resources except as may be
subsequently authorized by the Assistant Director or Authorized Officer.

Within two (2) working days of notification, the Assistant Director or
Authorized Officer will evaluate or have evaluated any cultural resources
discovered and will determine if any action may be required to protect or
preserve such discoveries. The cost of data recovery for cultural resources
discovered during lease operations shall be borne by the surface managing agency
unless otherwise specified by the Authorized Officer of the BLM or of the
surface managing agency, if different.

   (5) All cultural resources shall remain under the jurisdiction of the United
States until ownership is determined under applicable law.

(b) PALEONTOLOGICAL RESOURCES - If paleontological resources, either large and
conspicuous, and/or of significant scientific value are discovered during
construction, the find will be reported to the Authorized Officer immediately.
Construction will be suspended within 250 feet of said find. An evaluation of
the paleontological discovery will be made by a BLM approved professional
paleontologist within five (5) working days, weather permitting, to determine
the appropriate action(s) to prevent the potential loss of any significant
paleontological value. Operations within 250 feet of such discovery will not be
resumed until written authorization to proceed is issued by the Authorized
Officer. The lessee will bear the cost of any required paleontological
appraisals, surface collection of fossils, or salvage of any large conspicuous
fossils of significant scientific interest discovered during the operations.

(c) MULTIPLE MINERAL DEVELOPMENT - Operations will not be approved which, in the
opinion of the Authorized Officer, would unreasonably interfere with the orderly
development and/or production from a valid existing mineral lease issued prior
to this one for the same lands.

(d) OIL AND GAS/COAL RESOURCES - The BLM realizes that coal mining operations
conducted on Federal coal leases issued within producing oil and gas fields may
interfere with the economic recovery of oil and gas; just as Federal oil and gas
leases issued in a Federal coal lease area may inhibit coal recovery, BLM
retains the authority to alter and/or modify the resource recovery and
protection plans for coal operations and/or oil and gas operations on those
lands covered by Federal mineral leases so as to obtain maximum resource
recovery.

(e) RESOURCE RECOVERY AND PROTECTION - Notwithstanding the approval of a
resource recovery and protection plan (R2P2) by the BLM, lessor reserves the
right to seek damages against the operator/lessee in the event (i) the
operator/lessee fails to achieve maximum economic recovery (MER) (as defined at
43 CFR 3480.0-5(21)) of the recoverable coal reserves or (ii) the
operator/lessee is determined to have caused a wasting of recoverable coal
reserves. Damages shall be measured on the basis of the royalty that would have
been payable on the wasted or unrecovered coal.

The parties recognize that under an approved R2P2, conditions may require a
modification by the operator/lessee of that plan. In the event a coalbed or
portion thereof is not to be mined or is rendered unmineable by the operation,
the operator/lessee shall submit appropriate justification to obtain approval by
the authorized officer (AO) to leave such reserves unmined. Upon approval by the
AO, such coalbeds or portions thereof shall not be subject to damages as
described above. Further, nothing in this section shall prevent the
operator/lessee from exercising its right to relinquish all or portion of the
lease as authorized by statute and regulation.

In the event the AO determines that the R2P2, as approved, will not attain MER
as the result of changed conditions, the AO will give proper notice to the
operator/lessee as required under applicable regulations. The AO will order a
modification if necessary, identifying additional reserves to be mined in order
to attain MER. Upon a final administrative or judicial ruling upholding such an
ordered modification, any reserves left unmined (wasted) under that plan will be
subject to damages as described in the first paragraph under this section.

Subject to the right to appeal hereinafter set forth, payment of the value of
the royalty on such unmined recoverable coal reserves shall become due and
payable upon determination by the AO that the coal reserves have been rendered
unmineable or at such time that the operator/lessee has demonstrated an
unwillingness to extract the coal.

The BLM may enforce this provision either by issuing a written decision
requiring payment of the MMS demand for such royalties, or by issuing a notice
of non-compliance. A decision or notice of non-compliance issued by the lessor
that payment is due under this stipulation is appealable as allowed by law.

(f) PUBLIC LAND SURVEY PROTECTION - The lessee will protect all survey
monuments, witness corners, reference monuments, and bearing trees against
destruction, obliteration, or damage during operations on the lease areas. If
any monuments, corners or accessories are destroyed, obliterated, or damaged by
this operation, the lessee will hire an appropriate county surveyor or
registered land surveyor to reestablish or restore the monuments, corners, or
accessories at the same location, using surveying procedures in accordance with
the "Manual of Surveying Instructions for the Survey of the Public Lands of the
United Sates." The survey will be recorded in the appropriate county records,
with a copy sent to the Authorized Officer.

<PAGE>

                          Book 1463 of Photos, Page 584

                                                                       WYW127221
                                                                     Page 4 of 4

R2-FS-2820-13 (42)

                 NOTICE FOR LANDS OF THE NATIONAL FOREST SYSTEM
                              UNDER JURISDICTION OF
                           DEPARTMENT OF AGRICULTURE

The permittee/lessee must comply with all the rules and regulations of the
Secretary of Agriculture set forth at Title 36, Chapter II, of the Code of
Federal Regulations governing the use and management of the National Forest
System (NFS) when not inconsistent with the rights granted by the Secretary of
the Interior in the permit. The Secretary of Agriculture's rules and regulations
must be complied with for: (1) all use and occupancy of the NFS prior to
approval of an exploration plan by the Secretary of the Interior, (2) uses of
all existing improvements, such as forest development roads, within and outside
the area permitted by the Secretary of the Interior, and (3) use and occupancy
of the NFS not authorized by an exploration plan approved by the Secretary of
the Interior.

All matters related to this stipulation are to be addressed to:

District Ranger
2250 East Richards Street
Douglas, WY  82633
Telephone: 307-358-4690

who is the authorized representative of the Secretary of Agriculture.

                                     NOTICE

CULTURAL AND PALEONTOLOGICAL RESOURCES - The Forest Service (FS) is responsible
for assuring that the leased lands are examined to determine if cultural
resources are present and to specify mitigation measures. Prior to undertaking
any surface-disturbing activities on the lands covered by this lease, the lessee
or operator, unless notified to the contrary by the FS, shall:

1. Contact the FS to determine if a site specific cultural resource inventory is
required. If a survey is required, then:

2. Engage the services of a cultural resource specialist acceptable to the FS to
conduct a cultural inventory of the area of proposed surface disturbance. The
operator may elect to inventory an area larger than the area of proposed
disturbance to cover possible site relocation which may result from
environmental or other considerations.

An acceptable inventory is to be submitted to the FS for review and approval at
the time a surface disturbing plan of operation is submitted.

R2-FS-2820-13 (92)

3. Implement mitigation measures required by the FS and BLM to preserve or avoid
destruction of cultural resource values. Mitigation may include relocation of
proposed facilities, testing, salvage, and recordation or other protective
measures. All costs of the inventory and mitigation will be borne by the lessee
or operator, and all data and materials salvaged will remain under the
jurisdiction of the U.S. Government as appropriate.

The lessee or operator shall immediately bring to the attention of the FS and
BLM any cultural or paleontological resources or any other objects of scientific
interest discovered as a result of surface operations under this lease, and
shall leave such discoveries intact until directed to proceed by FS and BLM.

FOREST SERVICE REGION 2 SENSITIVE SPECIES - The FS is responsible for assuring
that the leased lands are examined prior to undertaking any surface disturbing
activities to determine effects upon any plant or animal species listed as
sensitive by the Regional Forester. The findings of this examination may result
in some restrictions to the operator's plan or even disallow use and occupancy
that would lead to the listing of a sensitive species under the Endangered
Species Act of 1973.

ENDANGERED OR THREATENED SPECIES - The FS is responsible for assuring that the
leased land is examined prior to undertaking any surface-disturbing activities
to determine effects upon any plant or animal species listed or proposed for
listing as endangered or threatened, or their habitats. The findings of this
examination may result in some restrictions to the operator's plans or even
disallow use and occupancy that would be in violation of the Endangered Species
Act of 1973, by detrimentally affecting endangered or threatened species or
their habitats.

The lessee/operator may, unless notified by the FS that the above examinations
are not necessary, conduct the examinations on the leased lands at his
discretion and cost. These examinations must be done by or under the supervision
of a qualified resource specialist approved by the FS. Acceptable reports must
be provided to the FS identifying the anticipated effects of a proposed action
on endangered or threatened species or their habitats, and the anticipated
effects and impacts to Forest Service Region 2 Sensitive species that may occur
or have habitat in the area.

--------------------------------------------------------------------------------

                                           The United States of America

   Triton Coal Company                     By
-------------------------------              -----------------------------------
    Company or Lessee Name

   /s/ John [illegible]                                /s/ [illegible]
-------------------------------              -----------------------------------
    (Signature of Lessee)                             (Signing Officer)

   President                                            State Director
-------------------------------              -----------------------------------
           (Title)                                          (Title)

          11/29/97                                       Dec. 18, 1997
-------------------------------              -----------------------------------
           (Date)                                           (Date)

================================================================================
Title 18 U.S.C. Section 1001, makes it a crime for any person knowingly and
willfully to make to any department or agency of the United States any false,
fictitious or fraudulent statements or representations as to any matter within
its jurisdiction.
================================================================================

This form does not constitute an information collection as defined by 44 U.S.C.
3502 and therefore does not require OMB approval.

STATE OF WYOMING  }
Campbell County   } ss.
                  }

Filed for record this 22nd day of January A.D., 1998 at 10:08 o'clock A.M. and
recorded in Book 1463 of Photos on page 581-584 Fees $12.00.

                               RECORDED        By
/s/ Susan Saunders             ABSTRACTED      Deputy    /s/ Ameilia M. Snider
---------------------------    INDEXED                --------------------------
County Clerk and Ex-Officio    CHECKED
Register of Deeds

                                                                          727983exv10w1

Table of Contents

Exhibit 10.1

EXECUTION COPY

 

 

EMPLOYMENT AGREEMENT

By and Between

GRUBB & ELLIS COMPANY

and

MARK E. ROSE

 

 

As of March 8, 2005

 

	 	 	 	 	 

EXECUTION COPY

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	1. EMPLOYMENT
	 	 	1	 
	2. DUTIES AND RESPONSIBILITIES OF EXECUTIVE
	 	 	1	 
	3. COMPENSATION
	 	 	2	 
	4. BENEFITS
	 	 	4	 
	5. TERM OF EMPLOYMENT
	 	 	5	 
	6. CONFIDENTIALITY
	 	 	5	 
	7. RESTRICTIVE COVENANTS
	 	 	6	 
	8. TERMINATION
	 	 	8	 
	9. VIOLATION OF OTHER AGREEMENTS
	 	 	11	 
	10. SPECIFIC PERFORMANCE; DAMAGES
	 	 	12	 
	11. SARBANES-ONLY COMPLIANCE; KEY MAN INSURANCE
	 	 	12	 
	12. TAXES
	 	 	13	 
	13. NOTICES
	 	 	13	 
	14. WAIVERS
	 	 	14	 
	15. PRESERVATION OF INTENT
	 	 	14	 
	16. ENTIRE AGREEMENT
	 	 	14	 
	17. INUREMENT; ASSIGNMENT
	 	 	14	 
	18. AMENDMENT
	 	 	15	 
	19. HEADINGS
	 	 	15	 
	20. COUNTERPARTS
	 	 	15	 
	21. GOVERNING LAW; DISPUTES
	 	 	15	 

 

Table of Contents

EXECUTION COPY

EMPLOYMENT AGREEMENT

     EMPLOYMENT AGREEMENT (this “Agreement”) effective as of March 8, 2005, by and between
GRUBB & ELLIS COMPANY, a Delaware corporation having an address at 2215 Sanders Road, Suite 400,
Northbrook, IL 60062 (the “Company”), and MARK E. ROSE an individual residing at 812 Marion
Avenue, Highland Park, Illinois 60035 (“Executive”).

WITNESSETH:

     WHEREAS, commencing on March 8, 2005 (the “Effective Date”) the Company desires to employ
Executive and Executive desires to provide his exclusive services to the Company in connection with
the Company’s business; and

     WHEREAS, both parties desire to clarify and specify the rights and obligations which each have
with respect to the other in connection with Executive’s employment.

     NOW, THEREFORE, in consideration of the agreements and covenants herein set forth, the parties
hereby agree as follows:

     1. Employment

     On the Effective Date, the Company hereby employs Executive as its Chief Executive Officer,
and Executive hereby accepts such exclusive employment as of the Effective Date and agrees to
render Executive’s exclusive services as an employee of the Company, all subject to and on the
terms and conditions herein set forth.

     2. Duties and Responsibilities of Executive

          (a) On the Effective Date Executive shall be exclusively employed as the Company’s Chief
Executive Officer, and Executive agrees to provide Executive’s exclusive services to the Company,
subject to the other provisions of this Section 2. Executive’s responsibilities and duties shall
be commensurate with those of a similarly situated chief executive officer of an entity engaged in
the business engaged, or proposed to be engaged, in by the Company. In the performance of his
duties, Executive shall report directly to the Board of Directors of the Company (the “Board” or
“Board of Directors”). In addition, upon the Effective Date, Executive shall be appointed to serve
on the Company’s Board of Directors until the next annual meeting of stockholders at which the
election of directors is to be voted on by the Company’s stockholders; and further, for so long as
this Agreement is in effect, Executive shall be a nominee for election to the Company’s Board of
Directors at each subsequent annual meeting of stockholders at which the election of directors is
to be voted on. In addition, Executive agrees that upon the termination of Executive’s employment
with the Company at any time and for any reason whatsoever, that immediately and simultaneously
upon any such termination Executive shall be deemed to have automatically and irrevocably resigned
from the Company’s Board of Directors.

1

Table of Contents

          (b) Executive shall use his best efforts to maintain and enhance the business and reputation
of the Company and shall perform such other duties commensurate with Executive’s position as may,
from time to time, be designated to Executive by the Board. Executive’s principal place of
employment shall be the Chicago, Illinois metropolitan area, although Executive shall be readily
available to travel as the reasonable needs of the Company shall require. Executive shall devote
himself to the business and affairs of the Company on a full-time basis; provided,
however, that so long as such activity does not materially interfere with Executive’s
performance of his duties and responsibilities hereunder, and is not contrary to the interests of
the Company, Executive may (i) serve on the board of directors (or similar governing body) of
another company or entity that is not, in the good faith judgment of the Board, competitive with
any business conducted by the Company, (ii) participate in civic, charitable or educational
activities, and on behalf of civic, charitable or educational organizations, and/or (iii) maintain,
monitor and pursue personal and family investments, provided that such investments do not involve
business activities or investments that, in the good faith judgment of the Board, are competitive
with any part of the business of the Company.

     3. Compensation

          (a) In consideration for Executive’s services to be performed under this Agreement and as
compensation therefor, Executive shall receive, in addition to all other benefits provided for in
this Agreement, a base salary (the “Base Salary”) at a rate of Five Hundred Thousand
($500,000) Dollars per annum. All payments of Base Salary shall be subject to all applicable
withholdings and deductions, and shall be payable in accordance with the Company’s customary
payroll practices. The Base Salary shall be subject to annual review by the Compensation Committee
of the Board (the “Compensation Committee”) and, pursuant to such annual review, the Base Salary,
as then currently in effect, may be increased, but not decreased, at the discretion of the
Compensation Committee, or by the Board.

          (b) In addition to the Base Salary, Executive shall be eligible to receive annual bonus
compensation (“Bonus Compensation”) based upon a bonus plan and formula to be established
each year during the “Term” hereof (as defined in Section 5 below) by the Compensation
Committee. The Bonus Compensation plan to be established each year by the Compensation Committee
shall be designed to take into account both the performance of the Executive and the Company. The
Bonus Compensation plan for Executive with respect to calendar year 2005, including Executive’s
guaranteed bonus for such calendar year, is set forth on Exhibit I annexed hereto. All
Bonus Compensation shall be payable in accordance with the procedures established from time to time
by the Compensation Committee, subject to all applicable withholding and deductions, and in
accordance with the Company’s customary payroll and bonus payment practices. All Bonus
Compensation for any calendar year during the Term hereof shall be paid on or before March
1st of the following calendar year.

          (c) Executive shall be entitled to participate in the Company’s contemplated,
performance-based Long Term Incentive Plan (the “Incentive Plan”), when and if such plan is
implemented, in such amounts as shall be determined by the Compensation Committee as approved by
the Board.

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          (d) Within five (5) business days after the Effective Date, the Company shall pay to Executive
a one-time cash bonus of $ Two Million Eighty Three Thousand-Three Hundred and Fifty Three
($2,083,353) Dollars; provided, however, that (i) in the event that at any time
prior to the two (2) year anniversary of the Effective Date, Executive is no longer employed by the
Company, other than as a result of the termination of this Agreement by the Company pursuant to
Section 8(b), Section 8(c), Section 8(d) or Section 8(f)
hereof, or the termination of this Agreement by Executive pursuant to Section 8(e) hereof,
Executive shall, within thirty (30) days upon any such termination of Executive’s employment, cause
to be returned to the Company the entire Sign-On Bonus, and (ii) in the event that at any time
during the third year of the Term Executive is no longer employed by the Company, other as a result
of the termination of this Agreement by the Company pursuant to Section 8(b), Section
8(c), Section 8(d) or Section 8(f) hereof, or the termination of this Agreement
by Executive pursuant to Section 8(e) hereof, Executive shall, within thirty (30) days upon
any such termination of Executive’s employment, cause to be returned to the Company the entire
Sign-On Bonus, less Seven Hundred and Fifty Thousand ($750,000) thereof. Executive shall have the
right to receive the Sign-On Bonus, subject to the terms of this Agreement, upon the full execution
and delivery of this Agreement by the parties.

          (e) (i) On the Effective Date, pursuant to the Company’s 2000 Stock Option Plan (referred to
herein as the “Plan”), the Company, subject to the approval of the Board to be obtained
simultaneously upon the entering into of this Agreement (by a duly held meeting or unanimous
written consent in lieu thereof), shall grant to Executive a non-qualified stock option (the
“Option” or “Options”) to purchase an aggregate of up to five hundred thousand (500,000) shares of
the Company’s common stock, par value $.01 per share (the “Common Stock”), at a per share exercise
price equal to the Fair Market Value (as such term is defined in the Plan) of the Common Stock at
the close of the trading day immediately preceding the Effective Date. The Options shall vest as
follows: Options to purchase up to 166,666 shares of Common Stock shall become exercisable on the
last business day before the one (1) year anniversary of the Effective Date; Options to purchase up
to an additional 166,666 shares of Common Stock shall become exercisable on the last business day
before the two (2) year anniversary of the Effective Date; and, Options to purchase up to an
additional 166,667 shares of Common Stock shall become exercisable on the last business day before
the three (3) year anniversary of the Effective Date. The Options shall have such other terms and
conditions as shall be set forth in the Company’s standard form of Option agreement in the form
annexed hereto as Exhibit II (the “Option Agreement”) to be entered into between the
Company and the Executive, which shall also reflect the terms set forth herein. The Option
Agreement shall, among other things, have a ten year term, automatic acceleration of the vesting of
all unvested Options upon a “Change in Control” (as that term is defined in Section 8(f)
below) that occurs at any time during the Term hereof, and a automatic acceleration of fifty
percent (50%) of the unvested Options upon (i) a termination without “Cause” (as that term is
defined in Section 8(a) below) that occurs at any time after the first year of the Term
hereof or (ii) upon a termination by Executive for “Good Reason” (as that term is defined in
Section 8(e) below) that occurs at any time after the first year of the Term hereof. As
used herein, the term “business day” shall mean any date when commercial banks in the City of
Chicago in the State of Illinois are open to accept deposits other than a Saturday or Sunday.
Executive shall have the right to receive the Options, subject to the terms of this

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Agreement and the Option Agreement, upon the full execution and delivery of this Agreement by
the parties.

               (ii) On the Effective Date, and on each anniversary thereof during the term hereof for so long
as this Agreement is in effect, (the Effective Date, and each anniversary thereof, solely for
purposes of this Section 3(e)(ii), is hereinafter referred to as the “Issuance Date”) Executive
shall receive such number of restricted shares of the Company’s Common Stock (the “Restricted
Shares”) that is equal to Seven Hundred and Fifty Thousand Dollars ($750,000) divided by the Fair
Market Value of the Company’s Common Stock on the closing of the trading day immediately preceding
the applicable Issuance Date, rounded up to the nearest whole share of Common Stock. All
Restricted Shares shall vest in three (3) equal annual installments commencing twelve (12) months
after the Issuance Date applicable to such Restricted Shares and shall have such other terms and
conditions as set forth in the Company’s standard form of Restricted Share agreement in the form
annexed hereto as Exhibit III (the “Restricted Share Agreement”) and shall otherwise be
subject to the Company’s customary terms and conditions with respect to Restricted Shares.
Executive shall have the right to receive the Restricted Shares, subject to the terms of this
Agreement and the Restricted Share Agreement, upon the full execution and delivery of this
Agreement by the parties.

     4. Benefits

          (a) In addition to the Base Salary, the Bonus Compensation, participation in the Incentive
Plan, the Sign-On Bonus and the equity compensation (Options and Restricted Shares), all as
provided for in Section 3 hereof, Executive shall be entitled to an aggregate of four (4)
weeks of vacation per year, which shall accrue on a monthly basis. In addition, Executive shall be
entitled to participate in or receive benefits equivalent to any employee benefit plan or other
arrangement, including but not limited to any medical, dental, vision, retirement, disability and
life insurance, generally made available by the Company to similar executives, subject to or on a
basis consistent with the terms, conditions and overall administration of such plans or
arrangements; provided, that such plans and arrangements are made available at the absolute
and sole discretion of the Company and nothing in this Agreement establishes any right of the
Executive to the availability or continuance of any such plan or arrangement. In addition,
Executive shall be eligible for such additional benefits as set forth on Exhibit IV annexed
hereto.

          (b) Executive shall be entitled to reimbursement for all reasonable travel, entertainment and
other reasonable expenses incurred in connection with the Company’s business, provided that
such expenses are (i) pre-approved by the Company if not in accordance with the Company’s policies,
and (ii) adequately documented and vouchered in accordance with the Company’s policies. The
Company shall pay or reimburse Executive for all usual and customary dues and subscriptions
reasonably related to the performance of Executive’s responsibilities hereunder, subject to the
limitations set forth on Exhibit II annexed hereto.

          (c) The Company shall reimburse Executive, up to a maximum of $15,000, for the reasonable,
documented attorneys’ fees and disbursements incurred by Executive in connection with the
negotiation and entering into of this Agreement.

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     5. Term of Employment

          (a) The term of Executive’s employment hereunder shall commence as of the Effective Date and
shall terminate on the date immediately preceding the three (3) year anniversary thereof, or such
earlier time in accordance with Section 8 hereof (the “Term”). The Term may be extended
beyond the period provided for in the immediately preceding sentence upon the mutual written
agreement of the parties hereto.

     6. Confidentiality

          (a) Executive agrees and covenants that, at any time during which Executive is employed by the
Company (which, for purpose of this Section 6 shall include the Company’s subsidiaries and
affiliates) or thereafter, Executive will not (without first obtaining the express permission of
the Company) (i) divulge to any individual, partnership, corporation (including a business trust),
limited liability company, joint stock company, trust, unincorporated association, joint venture,
or other entity, or a government or any political subdivision or agency thereof (“Person”), or use
(either by Executive or in connection with any business), any “Confidential Information” (as
hereinafter defined in Section 6(c) hereof) or (ii) divulge to any Person, or use (either
by Executive or in connection with any business), any “Trade Secrets” (as hereinafter defined in
Section 6(c) hereof) to which Executive may have had access or which had been revealed to
Executive during the course of Executive’s employment, unless such disclosure is pursuant to a
court order, disclosure in litigation involving the Company or in any reports or applications
required by law to be filed with any governmental agency, in which event Executive shall endeavor
to provide at least ten (10) days’ prior written notice to the Company, if possible, and if not
possible, then as much prior notice as Executive, in good faith, believes is reasonably possible to
provide under the circumstances.

          (b) Any interest in patents, patent applications, inventions, copyrights, developments,
innovations, methods, processes, analyses, drawings, and reports (collectively,
“Inventions”) which Executive may develop during the period Executive is employed under
this Agreement (either during regular business hours or otherwise) relating to the fields in which
the Company may then be engaged shall belong to the Company; and Executive shall disclose the
Inventions to the Company and forthwith upon request of the Company, Executive shall execute all
such assignments and other documents and take all such other action as the Company may reasonably
request in order to vest in the Company all right, title, and interest in and to the Inventions
free and clear of all liens, charges, and encumbrances.

          (c) As used in this Agreement, the term “Confidential Information” shall mean and
include all information and data in respect of the Company’s (including its subsidiaries’ and
affiliates’) operations, financial condition, products, customers and business (including, without
limitation, artwork, photographs, specifications, facsimiles, samples, business, marketing or
promotional plans, creative written material and information relating to characters, concepts,
names, trademarks, tradenames, tradedress and copyrights) which may be communicated to Executive or
to which Executive may have access in the course of Executive’s employment by the Company.
Notwithstanding the foregoing, the term “Confidential Information” shall not include information
which:

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	 	(i)  	is, at the time of the disclosure, a part of
the public domain through no act or omission by Executive; or
	 
	 	(ii)  	is hereafter lawfully disclosed to Executive by
a third party who or which did not acquire the information under an
obligation of confidentiality to or through the Company.

     As used in this Agreement, the term “Trade Secrets” shall mean and include
information, without regard to form, including, but not limited to, technical or non-technical
data, a formula, a pattern, a compilation, a program, a device, a method, a technique, a drawing, a
process, financial data, financial plans, product plans, or a list of actual or potential customers
or suppliers which is not commonly known by or available to the public and which information (i)
derives economic value, actual or potential, from not being known to, and not being readily
ascertainable by proper means by, other persons who can obtain economic value from its disclosure
or use; and (ii) is the subject of efforts that are reasonable under the circumstances to maintain
its secrecy. In addition, the term “trade secrets” includes all information protectible as “trade
secrets” under applicable law.

     Nothing in this Section 6 shall limit any protection, definition or remedy provided to
the Company under any law, statute or legal principle relating to Confidential Information or Trade
Secrets.

          (d) Executive agrees that at the time of leaving the employ of the Company Executive will
deliver to the Company and not keep or deliver to anyone else any and all notes, notebooks,
drawings, memoranda, documents, and in general, any and all material relating to the business of
the Company (except Executive’s personal files and records) or relating to any employee, officer,
director, agent or representative of the Company.

     7. Restrictive Covenants

          (a) Non-Competition

     Executive hereby agrees and covenants that during the period (“Non-Compete Period”) beginning
with the initial commencement of Executive’s employment with the Company (including subsidiaries or
affiliates) and ending on the last day of Executive’s employment with the Company, Executive will
not, directly or indirectly, engage in or become interested (whether as an owner, principal, agent,
stockholder, member, partner, trustee, venturer, lender or other investor, director, officer,
employee, consultant or through the agency of any person or entity otherwise in any business or
enterprise that at any time during the Non-Compete Period shall be in whole or in substantial part
competitive with any material part of the business conducted by the Company (which, for purposes of
this Section 7 shall include the Company’s subsidiaries and affiliates; except that
ownership of not more than 1% of the outstanding securities of any class of any entity that are
listed on a national securities exchange or traded in the over-the-counter market shall not be
considered a breach of this Section 7(a).

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          (b) No-Raid

     Executive agrees and covenants that for the period commencing on the date hereof and ending
one (1) year following the termination of Executive’s employment with the Company (the “Limited
Period”), Executive will not (without first obtaining the written permission of the Company),
directly or indirectly, divert or attempt to divert from the Company any business of any kind in
which the Company or its subsidiaries or affiliates is engaged.

          (c) Non-Solicitation

     Executive agrees and covenants that during the Limited Period, Executive will not (without
first obtaining the written permission of the Company), on his own behalf or on behalf of any third
party, directly or indirectly, recruit any then current employee, consultant or independent
contractor of the Company, or any individual who has served in any such capacity at any time six
(6) months prior thereto, for employment or any other relationship (including but not limited to an
independent contractor), or induce or seek to cause such person to terminate his or her employment
or independent contractor arrangement with the Company. Notwithstanding the immediately preceding
sentence, the provisions of this Section 7(c) shall not apply to (i) employees who are
terminated by the Company, and (ii) employees who respond to solicitations for employment directed
to the general public in print and electronic media of general circulation. As used in
Sections 7(a), 7(b) and 7(c) hereof, all references to the Company
includes the Company’s subsidiaries and affiliates.

          (d) Nondisparagement

     Each of the Company and Executive agree that upon inquiry from any third party regarding the
termination of Executive’s employment with the Company, if termination is for reasons other than
for Cause as defined in Section 8(a)(ii) or Section 8 (a)(iv) hereof, such third
party shall be advised that Executive has decided to pursue other opportunities. Each of the
Company and Executive represents and agrees that each will not in any way disparage the other (and
with respect to the Company, Executive’s agreement hereunder shall also apply to the Company’s
current, former and future officers and directors), or make any comments, statements, or
communications to the media or to any other third party that may be considered to be derogatory or
detrimental to the good name or business reputation of any of the aforementioned parties or
entities. Executive agrees that he shall direct all third party inquiries regarding Executive’s
employment with the Company to the Company’s Senior Vice President of Human Resources.

          (e) Indemnification

     Executive shall be indemnified by the Company in accordance with the Company’s Bylaws, as same
may be amended from time to time. The Company agrees to maintain in full force and effect
throughout the Term of this Agreement either its directors’ and officers’ liability insurance
policy in effect on the date hereof, AIG Policy NO. 318-11-217, or any replacement policy thereof
on such terms and conditions as may be approved by the Board.

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          (f) Cooperation by Employee

     With respect to any litigation, arbitration, mediation, administrative hearing, or any other
dispute resolution process to which the Company is a party or which Executive is a witness at any
time during or after the expiration of the Term of this Agreement, Executive, subject to the
reasonable requests of the Company and Executives personal schedule, agrees to fully cooperate
fully with the Company, its attorneys and agents, with respect to any process including but not
limited to, interviews, depositions, preparation for testimony, and testifying or otherwise
providing evidence at no out of pocket cost to Executive. In addition, in the event that
subsequent to the expiration or termination of this Agreement, Executive is either required to
testify (at trial, arbitration proceedings, a deposition, or otherwise), or is otherwise required
provide assistance to the Company (other than the delivery of written materials in Executive’s
dominion and control) for a period exceeding four (4) hours in any single day, then the Company
shall pay to Executive a reasonable per diem consulting fee for each such day. Executive shall be
indemnified by the Company in connection with Executive’s activities pursuant to this Section
7(f), and the provisions of this Section 7(f) shall survive the expiration or
termination of this Agreement.

     8. Termination

     The following termination provisions and benefits are in lieu of the benefits available under
the Company’s written policies and procedures, as amended, and the Company’s Executive Change of
Control Plan, as amended and the Company’s Executive Incentive Bonus and Severance Plan, as
amended. Executive agrees that his termination provisions shall not be governed by such policies
and plans.

          (a) Cause. Notwithstanding the terms of this Agreement, the Company may discharge Executive
and terminate this Agreement for cause (“Cause”) in the event (i) of Executive’s willful
and repeated refusal, to materially perform his duties hereunder with reasonable diligence, or to
follow a lawful directive of the Board commensurate with the Executive’s position, in each such
case, after specific written notice and a reasonable opportunity to cure (other than a failure or
refusal resulting from Executive’s incapacity), (ii) Executive’s commission of an act involving
fraud, embezzlement, or theft against the property or personnel of the Company, (iii) Executive’s
engagement in conduct that the Company in good faith reasonably determines will have a material
adverse affect on the reputation, business, assets, properties, results of operations or financial
condition of the Company, or (iv) Executive shall be convicted of a felony or shall plead
nolo contendere in respect thereof. Notwithstanding anything set forth herein to
the contrary, prior to the Company having the right to discharge Executive pursuant to clauses (i)
or (iii) of the immediately preceding sentence, the Company shall first be required to give
Executive at least thirty (30) days’ prior written notice of any alleged breach under Section
8(a)(i) or Section 8(a)(iii) above (the “Notice”), and for such Notice to be effective it must
specify in reasonable detail the nature of, and facts and circumstances relative to, such alleged
Cause, and Executive shall have a reasonable opportunity to cure any such alleged improper actions
within such thirty (30) days period (and in the event Executive takes such curative actions, the
Notice shall be deemed withdrawn). Executive shall have had an opportunity, together with counsel,
to be heard before the Board upon receipt of the Notice. As

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used in this section, the Company includes the Company’s subsidiaries and affiliates. In the
event Executive is discharged pursuant to this Section 8(a), (i) Executive’s Base Salary,
Bonus Compensation, participation in the Incentive Plan and all benefits under Section 4
hereof shall terminate immediately upon such discharge (subject to applicable law, such as pursuant
to the applicable provisions of the Consolidated Omnibus Budget Reconciliation Act (“COBRA”), and
(ii) the Company shall have no further obligations to Executive except for payment and
reimbursement to Executive for any monies due to Executive which right to payment or reimbursement
accrued prior to such discharge.

          (b) Incapacity. Should Executive become incapacitated to the extent that Executive is unable
to perform Executive’s duties pursuant to this Agreement for a period of more than one hundred
eighty (180) days in any twelve (12) month period by reason of illness, disability or other
incapacity, the Company may, subject to the requirements of applicable law, terminate this
Agreement upon written notice at any time after said one hundred eighty (180) day period and the
Company shall have no further obligations to Executive or his legal representatives except for
payment and reimbursement to Executive or his legal representatives for any monies due to Executive
which right to payment or reimbursement accrued prior to such discharge.

          (c) Death. This Agreement shall terminate immediately upon the death of Executive, in which
case the Company shall have no further obligations to Executive or his legal representatives except
for (i) payment and reimbursement to Executive’s estate or his legal representatives for any monies
due to Executive which right to payment or reimbursement accrued prior to Executive’s death, and
(ii) in the event that Executive dies subsequent to June 30 of any calendar year during the Term
hereof, Executive’s estate or his legal representatives shall be entitled to receive a prorated
portion of Executive’s Bonus Compensation with respect to the year of his death based upon the
number of days Executive was employed during such year divided by 365. Any such prorated Bonus
Compensation shall be paid to Executive’s estate or legal representatives at such time as Executive
would have been entitled to receive his Bonus Compensation pursuant to Section 3(b).

          (d) Termination Without Cause. At any time subsequent to the full execution and delivery of
this Agreement by the parties (including but not limited to the Effective Date), the Company may
terminate Executive’s employment with the Company without Cause (as defined in Section 8(a)
above), for any reason at any time, upon written notice to Executive, whereupon the Executive shall
be entitled to receive (i) all monies due to Executive which right to payment or reimbursement
accrued prior to such discharge, (ii) Base Salary in accordance with the Company’s customary
payroll practices for a period of twenty-four (24) months following the date of such termination,
subject to the provisions of Section 409A of the Internal Revenue Code of 1986, as amended, and
(iii) an amount, payable monthly, equal to Executive’s monthly COBRA payments, increased to
compensate for any amount withheld by the Company due to federal and state tax withholding
requirements until the earlier of (A) twelve (12) months from the termination date or (B) Executive
obtains health coverage from another source. The Company’s payment of any amounts to Executive upon
the termination of Executive’s employment without Cause is expressly subject to and contingent upon
Executive

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executing and delivering to the Company at the time of such termination the Company’s form of
release annexed hereto as Exhibit V (the “Release”).

          (e) Termination by the Executive for Good Reason. The Executive may terminate his employment
under this Agreement at any time for Good Reason by giving written notice to the Company. For
purposes of this Section 8(e), “Good Reason” shall mean: (i) a material breach of this
Agreement by the Company that is not cured within thirty (30) days after written notice of the
breach has been given to the Company by the Executive; (ii) Executive is required to permanently
relocate from the Chicago metropolitan area; (iii) a reduction in Executive’s Base Salary as then
currently in effect (i.e. inclusive of any increases in the Base Salary as same may
have been increased subsequent to the execution hereof in accordance with the provisions of Section
3(a) above); (iv) a material reduction in Executive’s duties and responsibilities; or (v) Executive
is required to directly report to any other executive officer of the Company. In the event of a
termination by Executive for Good Reason, Executive shall be entitled to receive (i) all monies due
to Executive which right to payment or reimbursement accrued prior to such discharge, (ii) Base
Salary in accordance with the Company’s customary payroll practices for a period of twenty-four
(24) months following the date of such termination, and (iii) an amount, payable monthly, equal to
Executive’s monthly COBRA payments, increased to compensate for any amount withheld by the Company
due to federal and state tax withholding requirements until the earlier of (A) twelve (12) months
from the termination date or (B) Executive obtains health coverage from another source. The
Company’s payment of any amounts to Executive upon Executive’s termination for Good Reason is
expressly subject to and contingent upon Executive executing and delivering to the Company at the
time of Executive’s termination for Good Reason the Release.

          (f) Termination Pursuant to a Change of Control. In the event that (i) the Executive is
terminated by the Company without Cause, or Executive terminates the agreement for “Good Reason”
(as defined in Section 8(e) above, but subject to the modification set forth in the
immediately following sentence), within eighteen (18) months after a “Change in Control” (as
defined below), or (ii) the Executive is terminated by the Company without Cause, or the Executive
terminates the agreement for Good Reason, six (6) months prior to a Change in Control and in
connection with or contemplation of a Change in Control by the Company, the Executive shall be
entitled to receive (i) all monies due to Executive which right to payment or reimbursement accrued
prior to such discharge, (ii) two (2) times the Executive’s Base Salary paid ratably over a period
of twelve (12) months following the date of such termination in accordance with the Company’s
customary payroll practices, and (iii) two (2) times the Executive’s “Applicable Bonus” (as
defined below) paid ratably over a period of twelve (12) months following the date of such
termination in accordance with the Company’s customary payroll practices. For purposes of this
Section 8(f) only, the definition of Good Reason shall be modified such that the reference
in subclause 8(e)(iv) to “. . . a material reduction in Executive’s responsibilities,” shall be
modified by adding the following phrase immediately subsequent to the word “responsibilities”: “.
.. . is less than 70% of the annual budgeted revenues with respect to the business operations of the
Company (as established by the Company in accordance with its standard procedures) for which
Executive was responsible immediately prior to the Change in Control.” The Company’s payment of
any amounts to Executive upon Executive’s termination

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upon a Change in Control is expressly subject to and contingent upon Executive executing and
delivering to the Company at the time of such termination the Release.

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

     For purposes of this Agreement, the term “Applicable Bonus” shall mean (i) if the Change in
Control occurs on or before, or as of, December 31, 2005, the cash bonus paid (or earned, if earned
but not actually paid in full) pursuant to the Bonus Compensation plan as set forth on Exhibit
I annexed hereto, but in no event less than the “Guaranteed Bonus” (as that term is defined on
Exhibit I annexed hereto), (ii) if the Change in Control occurs subsequent to (and not as
of) December 31, 2005, but prior to December 31, 2006, the average of the cash bonuses paid (or
earned, if earned but not actually paid in full) to Executive during the immediately preceding two
(2) years; and (iii) if the Change in Control occurs subsequent to (and not as of) December 31,
2006, the average of the cash bonuses paid (or earned, if earned but not actually paid in full) to
Executive during the immediately preceding three (3) years. It is expressly understood and agreed
that the term “Applicable Bonus,” and any calculation thereof, shall not include the Sign-On Bonus.

          (g) Exclusivity of Severance Provisions

     The Change in Control payment contemplated in Section 8(f) and the severance payments
contemplated in Section 8(d) or Section 8(e), are mutually exclusive
(i.e. Executive may be entitled to one or the other, but not both).

     9. Violation of Other Agreements

     Executive represents and warrants to the Company that he has no written employment agreement
or any other written agreement or other understanding of any nature whatsoever with his employer
immediately preceding the entering into of this Agreement (or any other former employer) that would
prohibit him from entering this Agreement, or that would in any fashion prevent, prohibit, restrict
or hinder Executive or the Company from directly or indirectly soliciting for employment any
current or prior employees of his immediately preceding employer,
or any other former employer, or that would in any fashion prevent, prohibit, restrict or
hinder

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Executive or the Company from soliciting, directly or indirectly, any current or prior
clients or prospects of Executive’s immediately preceding employer or any other former employer.
Accordingly, Executive is legally able to enter into this Agreement and accept employment with the
Company; that Executive is not prohibited by the terms of any agreement, understanding, law or
policy from entering into this Agreement; that the terms hereof will not and do not violate or
contravene the terms of any agreement, understanding, law or policy to which Executive is or may be
a party, or by which Executive may be bound or subject; and that Executive is under no physical or
mental disability that would hinder the performance of Executive’s duties under this Agreement.
Executive agrees to indemnify and hold harmless the Company, and its officers, directors and
stockholders, with respect to the provisions of this Section 9, which indemnification
hereunder shall include, but not be limited to, the reasonable legal fees and disbursements of the
Company and its officers, directors and stockholders.

     10. Specific Performance; Damages

     In the event of a breach or threatened breach of the provisions of Section 6 or
Section 7 hereof, Executive agrees that the injury which could be suffered by the Company
(which for purposes of this Section 10 shall include the Company’s successor-in-interest,
subsidiaries and affiliates) would be of a character which could not be fully compensated for
solely by a recovery of monetary damages. Accordingly, Executive agrees that in the event of a
breach or threatened breach of Section 6 or Section 7 hereof, in addition to and
not in lieu of any damages sustained by the Company and any other remedies which the Company may
pursue hereunder or under any applicable law, the Company shall have the right to equitable relief,
including but not limited to the issuance of a temporary or permanent injunction or restraining
order, by any court of competent jurisdiction against the commission or continuance of any such
breach or threatened breach, without the necessity of proving any actual damages or posting of any
bond or surety therefor.

     11. Sarbanes-Oxley Compliance; Key Man Insurance

          (a) The Company represents and warrants that it has supplied to Executive all information and
documentation of the Company that has been reasonably requested by Executive relating to the
Company’s compliance with the provisions of the Sarbanes-Oxley Act of 2002 (“Sarbanes-Oxley”), and
that all such information and documentation is accurate, true and correct in all material respects.
The Company further represents and warrants that it has fully complied with all of the provisions
of Sarbanes-Oxley that are applicable to the Company as of the date hereof. The Company shall
indemnify and hold harmless Executive from any liability or costs arising out of the Company’s
breach of the provisions of this Section 11.

          (b) Executive agrees to cooperate with the Company’s reasonable efforts to obtain, at the
Company’s sole cost and expense, so-called “key man” life insurance (or any renewal or extension
thereof) on the life of Executive in an amount to be designated by the Company. The Company shall
be the sole beneficiary of any such key man life insurance policy,
and in connection with the Company seeking to obtain any such key man life insurance (or any
renewal or extension thereof), Executive agrees to make himself available to submit to routine
medical examinations of the type typically required by insurance companies in issuing such

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insurance. Executive knows of no reason why the Company should not be able to obtain such key man
life insurance with respect to Executive.

     12. Taxes

     In the event that in the opinion of a nationally recognized accounting firm selected by
Executive and reasonably acceptable to the Company, Executive has or will receive any compensation
or recognize any income under this Agreement (or pursuant to any plan or other arrangement of the
Company) which constitutes an “excess parachute payment” within the meaning of Section 280G(b)(1)
of the Internal Revenue Code of 1986, as amended (the “Code”) (or of which a tax is otherwise
payable under Section 4999 of the Code), then the Company shall pay Executive an additional amount
(the “Additional Amount”) equal to the sum of (i) all taxes payable by the Executive under Section
4999 of the Code with respect to all such parachute payments (or otherwise) and the Additional
Amount, plus (ii) all federal, state and local income taxes payable by the Executive with respect
to the Additional Amount. The amounts payable pursuant to this Section 12 shall be paid by the
Company to the Executive within thirty (30) days of the final written determination of the
Additional Amount by the nationally recognized accounting firm that is selected hereunder.

     13. Notices

     Any and all notices, demands or requests required or permitted to be given under this
Agreement shall be given in writing and sent, by registered or certified U.S. mail, return receipt
requested, by hand, or by overnight courier, addressed to the parties hereto at their addresses set
forth above or such other addresses as they may from time-to-time designate by written notice,
given in accordance with the terms of this Section, together with copies thereof as follows:

In the case of the Company, to:

Grubb & Ellis Company

2215 Sanders Road, Suite 400

Northbrook, IL 60062

Attention: Chairman of the Board

With a copy simultaneously by like means to:

Zukerman Gore & Brandeis, LLP

875 Third Avenue

New York, NY 10022

Attention: Clifford A. Brandeis, Esq.

In the case of Executive, to:

812 Marion Avenue

Highland Park, Illinois 60035

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With a copy simultaneously by like means to:

Dickstein Shapiro Morin & Oshinsky LLP

2101 L Street, NW

Washington DC 20037

Attention: Peter H. Jost, Esq.

Notice given as provided in this Section shall be deemed effective: (i) on the date hand
delivered, (ii) on the first business day following the sending thereof by overnight courier, and
(iii) on the seventh calendar day (or, if it is not a business day, then the next succeeding
business day thereafter) after the depositing thereof into the exclusive custody of the U.S. Postal
Service.

     14. Waivers

     No waiver by any party of any default with respect to any provision, condition or requirement
hereof shall be deemed to be a waiver of any other provision, condition or requirement hereof; nor
shall any delay or omission of any party to exercise any right hereunder in any manner impair the
exercise of any such right accruing to it thereafter.

     15. Preservation of Intent

     Should any provision of this Agreement be determined by a court having jurisdiction in the
premises to be illegal or in conflict with any laws of any state or jurisdiction or otherwise
unenforceable, the Company and Executive agree that such provision shall be modified to the extent
legally possible so that the intent of this Agreement may be legally carried out.

     16. Entire Agreement

     This Agreement sets forth the entire and only agreement or understanding between the parties
relating to the subject matter hereof and supersedes and cancels all previous agreements,
negotiations, letters of intent, correspondence, commitments, plans and representations in respect
thereof among them, including, without limitation, any prior employment agreement and any special
severance agreements and, if applicable, the Company’s Executive Change of Control Plan, and no
party shall be bound by any conditions, definitions, warranties or representations with respect to
the subject matter of this Agreement except as provided in this Agreement.

     17. Inurement; Assignment

     The rights and obligations of the Company under this Agreement shall inure to the benefit of
and shall be binding upon any successor of the Company or to the business of the Company, subject
to the provisions hereof. The Company may assign this Agreement to any person, firm or
corporation controlling, controlled by, or under common control with the Company. Neither
this Agreement nor any rights or obligations of Executive hereunder shall be transferable or
assignable by Executive, other than the rights which inure to his estate and legal representatives
hereunder in the event of the death of Executive during the Term hereof.

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     18. Amendment

     This Agreement may not be amended in any respect except by an instrument in writing signed by
the parties hereto.

     19. Headings

     The headings in this Agreement are solely for convenience of reference and shall be given no
effect in the construction or interpretation of this Agreement.

     20. Counterparts

     This Agreement may be executed in any number of original or facsimile counterparts, each of
which shall be deemed an original, but all of which when taken together shall constitute one and
the same instrument.

     21. Governing Law; Disputes

     This Agreement shall be governed by, construed and enforced in accordance with the internal
laws of the State of Illinois, without giving reference to principles of conflict of laws. Any
dispute or controversy arising under, out of, in connection with or in relation to this Agreement
shall be finally determined and settled by arbitration. Arbitration shall be initiated by one
party making written demand upon the other party and simultaneously filing the demand together with
required fees in the office of the American Arbitration Association in Chicago, Illinois. The
arbitration proceeding shall be conducted in Chicago, Illinois by a single arbitrator in accordance
with the Commercial Arbitration Rules as required by the arbitrator. Each party shall bear their
own legal costs and expenses in connection with any arbitration and the parties shall share equally
all arbitration fees; provided, however, that the prevailing party shall have the
right to recover from the non-prevailing party all legal costs and expenses and all arbitration
fees expended by the prevailing party in any arbitration. Except as required by the arbitrator,
the parties shall have no obligation to comply with discovery requests made in the arbitration
proceeding. The arbitration award shall be a final and binding determination of the dispute and
shall be fully enforceable as an arbitration award in any court having jurisdiction and venue over
such parties.

Remainder of Page Intentionally Blank

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

	 	 	 	 	 
	 	 	 
	 	                                              /s/ Mark E. Rose
 	 
	 	MARK E. ROSE 	 
	 	 	 
	 

	 	 	 	 	 
	 	GRUBB & ELLIS COMPANY

 	 
	 	By:  	/s/ C. Michael Kojaian
 	 
	 	 	C. Michael Kojaian 	 
	 	 	Chairman of the Board 	 

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