Document:

Exhibit 4.7

                                PROMISSORY NOTE

$4,000,000                                         Bloomfield Hills, Michigan
                                                   May 9, 2003

         FOR VALUE RECEIVED,  Grubb & Ellis Company, a Delaware corporation (the
"Maker"),  hereby  unconditionally  promises  to  pay to the  order  of  Kojaian
Funding,  L.L.C.  (the  "Holder"),  having an address at 39400 Woodward  Avenue,
Suite 250,  Bloomfield  Hills,  Michigan 48304, at such address or at such other
place as may be designated in writing by the Holder,  or its  successors  and/or
assigns,   the  original  aggregate   principal  sum  of  Four  Million  Dollars
($4,000,000),  together  with interest on the unpaid  principal  balance of this
Note outstanding at a rate per annum equal to ten percent (10%) (computed on the
basis of the actual number of days elapsed in a 360-day year).

         Interest-only  payments  shall be paid on June 1, 2003 and on the first
day of each month,  in arrears,  thereafter  through and including July 15, 2004
(the  "Maturity  Date")  when the  entire  outstanding  principal,  any  accrued
interest,  plus  reasonable,  documented  out-of-pocked  expenses  of the Holder
incurred in connection with the collection of this Note ("reasonable expenses"),
shall be due and payable,  or earlier if such amounts are made automatically due
and payable  upon the  occurrence  of an Event of Default  (as  defined  below);
PROVIDED,  HOWEVER, that the obligations herein are subject to the terms of that
certain  Subordination  Agreement  dated of even date herewith  among the Maker,
various financial  institutions,  and Bank of America,  N.A. (the "Subordination
Agreement")  and no payments of any nature  whatsoever  shall be made nor rights
shall be exercised  with respect to the Note in  contravention  of the terms and
provisions  of the  Subordination  Agreement.  Subject to the  provisions of the
Amended and  Restated  Credit  Agreement,  dated as of  December  31,  2000,  as
amended,  among  the  Company,  Various  Financial  Institutions,  LaSalle  Bank
National  Association,  American  National Bank and Trust Company of Chicago and
Bank of America as same may be modified,  extended,  amended or  supplemented at
any time or from time to time (the "Credit Agreement"),  the principal amount of
this Note, plus accrued interest thereon with respect thereto, may be prepaid in
cash,  in whole or in part,  at  anytime  and from  time to time by Maker by the
tendering of payment thereof to Holder after providing Holder with 15 days prior
written  notice of said  prepayment.  All cash  payments by the Maker under this
Note shall be in immediately available funds

         The Note is  transferable  and  assignable  to any  person to whom such
transfer is  permissible  under  applicable  law. The Maker agrees to issue from
time to time  replacement  Notes in the form hereof to facilitate such transfers
and  assignments.  In  addition,  after  delivery  of an  indemnity  in form and
substance  satisfactory  to  the  Maker,  the  Maker  also  agrees  to  issue  a
replacement Note if the Note is lost, stolen, mutilated or destroyed.

         Every amount overdue under this Note shall bear interest from and after
the date on which such amount  first  became  overdue at an annual rate which is
two (2)  percentage  points  above  the  rate per year  specified  in the  first
paragraph of this Note (the "Default Interest Rate"). The Default

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Interest  Rate shall be increased at an annual rate which is two (2)  percentage
points above the then current  Default  Interest Rate on the thirtieth day after
the date on which the Note first  became  overdue and for each month  thereafter
that the Note remains overdue;  PROVIDED, HOWEVER that the Default Interest Rate
shall not exceed a maximum annual rate of 18%. Such interest on overdue  amounts
under this Note shall be  payable on demand and shall  accrue and be  compounded
monthly  until the  obligation  of the Maker with respect to the payment of such
interest has been  discharged  (whether before or after  judgment).  In no event
shall any interest  charged,  collected  or reserved  under this Note exceed the
maximum rate then permitted by applicable law and if any such payment is paid by
the Maker,  then such excess sum shall be credited by the Holder as a payment of
principal.

         All  payments  by the  Maker  under  this  Note  shall be made  without
set-off, defense or counterclaim and be free and clear and without any deduction
or  withholding  for any  taxes  or  fees of any  nature  whatever,  unless  the
obligation to make such deduction or withholding is imposed by law.

         No delay or omission on the part of the Holder in exercising  any right
under this Note shall operate as a waiver of such right or of any other right of
the  Holder,  nor shall any delay,  omission  or waiver on any one  occasion  be
deemed a bar to or waiver of the same or any other right on any future occasion.

         Maker  agrees  that:  (i)  upon  the  failure  to pay when due the then
outstanding   principal  balance,   accrued  interest  and  reasonable  expenses
hereunder;  (ii) if Maker  (1)  commences  any  voluntary  proceeding  under any
provision of Title 11 of the United States Code, as now or hereafter amended, or
commences  any other  proceeding,  under  any law,  now or  hereafter  in force,
relating to bankruptcy, insolvency, reorganization, liquidation, or otherwise to
the  relief  of  debtors  or the  readjustment  of  indebtedness,  (2) makes any
assignment for the benefit of creditors or a composition or similar  arrangement
with such  creditors,  or (3) appoints a receiver,  trustee or similar  judicial
officer or agent to take charge of or  liquidate  any of its property or assets;
(iii) upon the commencement  against Maker of any involuntary  proceeding of the
kind described in paragraph (ii) which is not discharged by Maker within 45 days
after the  commencement of said  proceeding;  (iv) the default by the Maker, and
the continuation  thereof beyond any applicable notice and cure periods,  of any
of its other debt obligations, including the breach of any material provision of
the Credit Agreement which would institute acceleration thereunder;  or (v) upon
the  closing of a  transaction  that is deemed to be a  Liquidation  pursuant to
Section  3(c)(ii) of the Certificate of Designation  (any of (i) through (v), an
"Event of Default"),  all unpaid  principal and accrued interest under this Note
shall become  immediately due and payable upon demand with ten (10) days written
notice. The term "Person" means an individual, a corporation,  a partnership,  a
limited  liability  company,  an  associate,  a trust  or any  other  entity  or
organization,  including a government or political  subdivision  or an agency or
instrumentality thereof.

         Upon the occurrence and continuance of an Event of Default,  the Holder
shall (a) be entitled to vote all  Investment  Property  (as defined in the UCC)
constituting  Collateral,  (b) be entitled to receive,  hold and/or apply to the
payment of the Obligations  any dividends  payable in respect of the Collateral,
and (c) have all the rights and  remedies of a secured  party under the UCC. The
Maker shall take such steps from time to time as may be  requested by the Holder
to ensure that the security  interest  created  hereby shall  constitute a first
priority  security  interest under applicable law,  including the UCC;  PROVIDED
HOWEVER, the security interest created herein shall be junior to and subordinate
to the rights under the Credit Agreement while the Credit Agreement is in place.

                                      -2-
<PAGE>

         Any  voluntary  or mandatory  prepayment  of this Note shall be applied
first to the payment of  interest  accrued and unpaid on this Note and second to
the payment of principal.

         This Note is secured by a Security Agreement of even date herewith (the
"Security  Agreement")  which  is a lien  upon  all  assets  of the  Maker.  The
obligations  of  Maker  contained  herein  and in  the  Security  Agreement  are
guaranteed by that certain Guarantee and Collateral Agreement dated of even date
herewith among Maker, certain of Maker's subsidiaries and Holder.

         None of the terms or provisions of this Note may be excluded,  modified
or amended  except by a written  instrument  duly executed by the Holder and the
Maker  expressly  referring  to this Note and  setting  forth the  provision  so
excluded, modified or amended.

         Maker  hereby  forever  waives  presentment,  demand,  presentment  for
payment,  protest,  notice of  protest,  notice of dishonor of this Note and all
other  demands  and  notices  in  connection  with  the  delivery,   acceptance,
performance and enforcement of this Note upon ten (10) days written notice.

         If action is instituted to collect on this Note,  the Maker promises to
pay all reasonable  costs and expenses,  including  reasonable  attorney's fees,
incurred in connection with such action.

         This Note shall be governed and construed in  accordance  with the laws
of the State of Illinois applicable to agreements made and performed entirely in
such State,  without regard to conflict of laws principles thereof, and shall be
binding  upon the  successors  or  assigns  of the Maker and shall  inure to the
benefit of the successors and assigns of the Holder.

                                               GRUBB & ELLIS COMPANY

                                               By:
                                                   ---------------------------
                                                   Name:
                                                   Title:

                                      -3-Exhibit 4.8

                       GUARANTEE AND COLLATERAL AGREEMENT

                                     made by

                              GRUBB & ELLIS COMPANY

                         and certain of its Subsidiaries

                                   in favor of

                             KOJAIAN FUNDING, L.L.C.

                             Dated as of May 9, 2003

<PAGE>

                                TABLE OF CONTENTS

                                                                            PAGE

SECTION 1.       DEFINED TERMS                                                 1
        1.1      DEFINITIONS                                                   1
        1.2      OTHER DEFINITIONAL PROVISIONS                                 5

SECTION 2.       GUARANTEE                                                     5
        2.1      GUARANTEE                                                     5
        2.2      RIGHT OF CONTRIBUTION                                         6
        2.3      NO SUBROGATION                                                6
        2.4      AMENDMENTS, ETC. WITH RESPECT TO THE BORROWER OBLIGATIONS     6
        2.5      GUARANTEE ABSOLUTE AND UNCONDITIONAL                          7
        2.6      REINSTATEMENT                                                 8
        2.7      PAYMENTS                                                      8

SECTION 3.       GRANT OF SECURITY INTEREST                                    8

SECTION 4.       REPRESENTATIONS AND WARRANTIES                                9
        4.1      REPRESENTATIONS IN CREDIT AGREEMENT                           9
        4.2      TITLE: NO OTHER LIENS                                         9
        4.3      PERFECTED FIRST PRIORITY LIENS                               10
        4.4      CHIEF EXECUTIVE OFFICE                                       10
        4.5      INVENTORY AND EQUIPMENT                                      10
        4.6      FARM PRODUCTS                                                10
        4.7      PLEDGED SECURITIES                                           10
        4.8      RECEIVABLES                                                  11
        4.9      INTELLECTUAL PROPERTY                                        11

SECTION 5.       COVENANTS                                                    11
        5.1      COVENANTS IN CREDIT AGREEMENT                                11
        5.2      DELIVERY OF INSTRUMENTS AND CHATTEL PAPER                    12
        5.3      MAINTENANCE OF INSURANCE                                     12
        5.4      PAYMENT OF OBLIGATIONS                                       12
        5.5      MAINTENANCE OF PERFECTED SECURITY INTEREST:
                   FURTHER DOCUMENTATION                                      12
        5.6      CHANGES IN LOCATIONS, NAME, ETC.                             12
        5.7      NOTICES                                                      13
        5.8      PLEDGED SECURITIES                                           13
        5.9      RECEIVABLES                                                  14
        5.10     INTELLECTUAL PROPERTY                                        14

SECTION 6.       REMEDIAL PROVISIONS                                          16
        6.1      CERTAIN MATTERS RELATING TO RECEIVABLES                      16
        6.2      COMMUNICATIONS WITH OBLIGORS; GRANTORS REMAIN LIABLE         17

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<PAGE>

        6.3      PLEDGED STOCK                                                17
        6.4      PROCEEDS TO BE TURNED OVER TO LENDER                         18
        6.5      APPLICATION OF PROCEEDS                                      18
        6.6      CODE AND OTHER REMEDIES                                      18
        6.7      REGISTRATION RIGHTS                                          19
        6.8      WAIVER, DEFICIENCY                                           20

SECTION 7.       MISCELLANEOUS                                                20
        7.1      AMENDMENTS IN WRITING                                        20
        7.2      NOTICES                                                      20
        7.3      NO WAIVER BY COURSE OF CONDUCT; CUMULATIVE REMEDIES          21
        7.4      ENFORCEMENT EXPENSES; INDEMNIFICATION                        21
        7.5      SUCCESSORS AND ASSIGNS                                       22
        7.6      SET OFF                                                      22
        7.7      COUNTERPARTS                                                 22
        7.8      SEVERABILITY                                                 22
        7.9      SECTION HEADINGS                                             22
        7.10     INTEGRATION                                                  22
        7.11     GOVERNING LAW                                                23
        7.12     SUBMISSION TO JURISDICTION; WAIVERS                          23
        7.13     ACKNOWLEDGMENTS                                              23
        7.14     WAIVER OF JURY TRIAL                                         24
        7.15     ADDITIONAL GRANTORS                                          24
        7.16     RELEASES                                                     24

SCHEDULES:

1       Notice of Addresses of Guarantors
2       Description of Pledged Securities
3       Filings and Other Actions Required to Perfect Security Interests
        -UCC Financing Statements
4       Location of Jurisdiction of Organization and Chief Executive Office
5       Location of Inventory and Equipment
6       Intellectual Property

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<PAGE>

                       GUARANTEE AND COLLATERAL AGREEMENT

       This GUARANTEE AND COLLATERAL AGREEMENT, dated as of May 9, 2003, made by
each of the signatories hereto (together with any other entity that may become a
party hereto as provided herein,  the "GRANTORS"),  in favor of KOJAIAN FUNDING,
L.L.C., a Michigan limited liability company, (the "Lender") party to the Letter
Agreement,  dated as of May 7, 2003 (the "LETTER  AGREEMENT"),  between  GRUBB &
ELLIS COMPANY, a Delaware corporation (the "Borrower") and the Lender.

                                   WITNESSETH:

       WHEREAS,  pursuant to the Letter Agreement, the Lender has agreed to make
a Four Million  Dollar  ($4,000,000)  loan to the Borrower (the "Loan") upon the
terms and subject to the conditions set forth therein:

       WHEREAS,  the  Borrower is a member of an  affiliated  group of companies
that includes each other Grantor;

       WHEREAS,  the  proceeds  of the Loan will be used in part to  enable  the
Borrower  to make  valuable  transfers  to one or more of the other  Grantors in
connection with the operation of their respective businesses;

       WHEREAS,  the  Borrower  and the other  Grantors  are  engaged in related
businesses, and each Grantor will derive substantial direct and indirect benefit
from the making of the Loan; and

       WHEREAS,  it is a condition  precedent to the obligation of the Lender to
make  its Loan to the  Borrower  that  the  Grantors  shall  have  executed  and
delivered this Agreement to the Lender.

       NOW, THEREFORE, in consideration of the promises and to induce the Lender
to make the Loan to the Borrower thereunder, each Grantor hereby agrees with the
Lender as follows:

                            SECTION 1. DEFINED TERMS

       1.1    DEFINITIONS. (a) Unless otherwise defined herein, terms defined in
the Security Agreement dated as of even date herewith among the Borrower and the
Lender (the "Security  Agreement") and used herein shall have the meanings given
to them in the Security Agreement,  and the following terms which are defined in
the  Uniform  Commercial  Code in effect in the  State of  Illinois  on the date
hereof  are used  herein as so  defined:  Accounts,  Chattel  Paper,  Documents,
Equipment, Farm Products, Instruments and Inventory.

              (b)    The following terms shall have the following meanings:

              "AGREEMENT":  this Guarantee and Collateral Agreement, as the same
       may be

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<PAGE>

       amended, supplemented or otherwise modified from time to time.

              "BORROWER  OBLIGATIONS":  the  collective  reference to the unpaid
       principal  of and  interest  on the Loan and all  other  obligations  and
       liabilities  of the Borrower  (including,  without  limitation,  interest
       accruing at the then  applicable  rate  provided in the  Promissory  Note
       dated of even date  herewith  from  Borrower to Lender (the "Note") after
       the  maturity of the Loan and  interest  accruing at the then  applicable
       rate provided in the Note after the filing of any petition in bankruptcy,
       or the commencement of any insolvency, reorganization or like proceeding,
       relating  to the  Borrower,  whether  or not a claim for  post-filing  or
       post-petition  interest is allowed in such proceeding) to the Lender (or,
       in the case of any Hedge  Agreement  referred to below,  any Affiliate of
       Lender),  whether direct or indirect,  absolute or contingent,  due or to
       become due, or now existing or hereafter incurred, which may arise under,
       out of,  or in  connection  with,  the  Note,  Security  Agreement,  this
       Agreement,  the other Loan  Documents,  any Letter of Credit or any Hedge
       Agreement  entered into by the Borrower  with Lender (or any Affiliate of
       Lender) or any other  document  made,  delivered  or given in  connection
       therewith,  in each case  whether  on  account  of  principal,  interest,
       reimbursement  obligations,  guarantee  obligations,  fees,  indemnities,
       costs, expenses or otherwise (including, without limitation, all fees and
       disbursements  of counsel to the Lender  that are  required to be paid by
       the Borrower pursuant to the terms of any of the foregoing agreements).

              "COLLATERAL": as defined in Section 3.

              "COLLATERAL  ACCOUNT":  any collateral account  established by the
       Lender as provided in Section 6.1 or 6.4.

              "COPYRIGHTS":  (i) all  copyrights  arising  under the laws of the
       United States,  any other country or any political  subdivision  thereof,
       whether  registered or unregistered and whether  published or unpublished
       (including,   without  limitation,  those  listed  in  SCHEDULE  6),  all
       registrations and recordings thereof,  and all applications in connection
       therewith,  including, without limitation, all registrations,  recordings
       and  applications  in the United States  Copyright  Office,  and (ii) the
       right to obtain all renewals thereof.

              "COPYRIGHT LICENSES":  any written agreement naming any Grantor as
       licensor or licensee  (including,  without  limitation,  those  listed in
       SCHEDULE 6), granting any right under any Copyright,  including,  without
       limitation, the grant of rights to manufacture,  distribute,  exploit and
       sell materials derived from any Copyright.

              "GENERAL  INTANGIBLES":  all "general intangibles" as such term is
       defined in Section 9-106 of the Uniform  Commercial Code in effect in the
       State of  Illinois  on the date  hereof  and,  in any  event,  including,
       without  limitation,   with  respect  to  any  Grantor,   all  contracts,
       agreements, instruments and indentures in any form, and portions thereof,
       to which such  Grantor is a party or under  which  such  Grantor  has any
       right, title or interest or to which such Grantor or any property of such
       Grantor is subject, as the same

                                       2
<PAGE>

       may from time to time be amended,  supplemented  or  otherwise  modified,
       including,  without limitation, (i) all rights of such Grantor to receive
       moneys due and to become due to it thereunder or in connection therewith,
       (ii) all rights of such Grantor to damages  arising  thereunder and (iii)
       all rights of such  Grantor  to  perform  and to  exercise  all  remedies
       thereunder,  in each case to the  extent  the grant by such  Grantor of a
       security  interest  pursuant to this  Agreement  in its right,  title and
       interest in such  contract,  agreement,  instrument  or  indenture is not
       prohibited by such contract  agreement,  instrument or indenture  without
       the consent of any other party thereto, would not give any other party to
       such contract  agreement,  instrument or indenture the right to terminate
       its obligations thereunder, or is permitted with consent if all necessary
       consents to such grant of a security interest have been obtained from the
       other parties  thereto (it being  understood that the foregoing shall not
       be deemed to obligate  such Grantor to obtain such  consents);  PROVIDED,
       that the foregoing limitation shall not affect, limit, restrict or impair
       the  grant  by such  Grantor  of a  security  interest  pursuant  to this
       Agreement  in any  Receivable  or any  money or other  amounts  due or to
       become due under any such contract, agreement, instrument or indenture.

              "GUARANTOR  OBLIGATIONS":  with  respect  to  any  Guarantor,  the
       collective   reference  to,   without   duplication,   (i)  the  Borrower
       Obligations  and (ii) all  obligations  and liabilities of such Guarantor
       which may arise under or in connection  with this  Agreement or any other
       Loan Document to which such Guarantor is a party, in each case whether on
       account  of  guarantee  obligations,   reimbursement  obligations,  fees,
       indemnities, costs, expenses or otherwise (including, without limitation,
       all fees and  disbursements  of counsel to Lender that are required to be
       paid by such  Guarantor  pursuant to the terms of this  Agreement  or any
       other Loan Document).

              "GUARANTORS":  the collective reference to each Grantor other than
       the Borrower.

              "HEDGE  AGREEMENTS":  as to any Person,  all interest  rate swaps,
       caps or collar  agreements or similar  arrangements  entered into by such
       Person providing for protection against fluctuations in interest rates or
       currency exchange rates or the exchange of nominal interest  obligations,
       either generally or under specific contingencies.

              "INTELLECTUAL  PROPERTY":  the collective reference to all rights,
       priorities  and privileges  relating to  intellectual  property,  whether
       arising under United States,  multinational or foreign laws or otherwise,
       including,  without limitation,  the Copyrights,  the Copyright Licenses,
       the  Patents,  the Patent  Licenses,  the  Trademarks  and the  Trademark
       Licenses,  and all rights to sue at law or in equity for any infringement
       or other impairment thereof,  including the right to receive all proceeds
       and damages therefrom.

              "INTERCOMPANY  NOTE": any promissory note evidencing loans made by
       any Grantor to the Borrower or any of its Subsidiaries.

              "ISSUERS":  the  collective  reference to each issuer of a Pledged
       Security.

                                       3
<PAGE>

              "ILLINOIS  UCC": the Uniform  Commercial Code as from time to time
       in effect in the State of Illinois.

              "OBLIGATIONS":  (i) in the  case  of the  Borrower,  the  Borrower
       Obligations,  and  (ii)  in the  case of each  Guarantor,  its  Guarantor
       Obligations.

              "PATENTS":  (i) all letters patent of the United States, any other
       country or any political  subdivision thereof and all goodwill associated
       therewith,  all  reissues  and  extensions  thereof,  including,  without
       limitation,  any of the  foregoing  referred  to in  SCHEDULE 6, (ii) all
       applications for letters patent of the United States or any other country
       and  all  divisions,  continuations  and  continuations-in-part  thereof,
       including,  without  limitation,  any of  the  foregoing  referred  to in
       SCHEDULE 6, and (iii) all rights to obtain any reissues or  extensions of
       the foregoing.

              "PATENT  LICENSE":  all  agreements,   whether  written  or  oral,
       providing for the grant by or to any Grantor of any right to manufacture,
       use or sell  any  invention  covered  in  whole  or in part by a  Patent,
       including,  without  limitation,  any of  the  foregoing  referred  to in
       SCHEDULE 6.

              "PLEDGED  NOTES":  all promissory  notes listed on SCHEDULE 2, all
       Intercompany  Notes at any  time  issued  to any  Grantor  and all  other
       promissory  notes issued to or held by any Grantor (other than promissory
       notes issued in connection with extensions of trade credit by any Grantor
       in the ordinary course of business).

              "PLEDGED  SECURITIES":  the  collective  reference  to the Pledged
       Notes and the Pledged Stock.

              "PLEDGED STOCK": the shares of Capital Stock listed on SCHEDULE 2,
       together with any other shares, stock certificates,  options or rights of
       any nature  whatsoever in respect of the Capital Stock of any Person that
       may be issued or granted to, or held by, any Grantor while this Agreement
       is in effect; PROVIDED that Pledged Stock shall not include more than 66%
       of the issued and outstanding Capital Stock of any Foreign Subsidiary.

              "PROCEEDS":  all  "proceeds"  as such term is  defined  in Section
       9-306(1)  of the  Uniform  Commercial  Code in  effect  in the  State  of
       Illinois on the date hereof and,  in any event,  shall  include,  without
       limitation,  all  dividends or other income from the Pledged  Securities,
       collections thereon or distributions or payments with respect thereto.

              "RECEIVABLE": any right to payment for goods sold or leased or for
       services  rendered,  whether  or  not  such  right  is  evidenced  by  an
       Instrument  or Chattel  Paper and  whether  or not it has been  earned by
       performance (including, without limitation, any Account).

              "SECURITIES ACT": the Securities Act of 1933, as amended.

                                       4
<PAGE>

              "TRADEMARKS":  (i) all trademarks,  trade names,  corporate names,
       company names,  business names,  fictitious business names, trade styles,
       service marks,  logos and other source or business  identifiers,  and all
       goodwill  associated  therewith,  now  existing or  hereafter  adopted or
       acquired,  all registrations and recordings thereof, and all applications
       in  connection  therewith,  whether  in  the  United  States  Patent  and
       Trademark Office or in any similar office or agency of the United States,
       any State  thereof  or any other  country  or any  political  subdivision
       thereof,  or  otherwise,  and  all  common-law  rights  related  thereto,
       including,  without  limitation,  any of  the  foregoing  referred  to in
       SCHEDULE 6, and (ii) the right to obtain all renewals thereof.

              "TRADEMARK  LICENSE":  any  agreement,  whether  written  or oral,
       providing  for the  grant by or to any  Grantor  of any  right to use any
       Trademark,  including,  without limitation, any of the foregoing referred
       to in SCHEDULE 6.

       1.2    OTHER DEFINITIONAL  PROVISIONS,  (a) The words "hereof,  "herein",
"hereto" and "hereunder" and words of similar import when used in this Agreement
shall refer to this Agreement as a whole and not to any particular  provision of
this Agreement, and Section and Schedule references are to this Agreement unless
otherwise specified.

              (b)    The meanings given to terms defined herein shall be equally
applicable to both the singular and plural forms of such terms.

              (c)    Where  the  context   requires,   terms   relating  to  the
Collateral or any part thereof, when used in relation to a Grantor,  shall refer
to such Grantor's Collateral or the relevant part thereof.

                              SECTION 2. GUARANTEE

       2.1    GUARANTEE.   (a)  Each  of  the  Guarantors  hereby,  jointly  and
severally,  unconditionally  and  irrevocably  guarantees  to the Lender and its
respective  successors,  indorsees,  transferees  and  assigns,  the  prompt and
complete payment and performance by the Borrower when due (whether at the stated
maturity, by acceleration or otherwise) of the Borrower Obligations.

              (b)    Anything  herein  or in  any  other  Loan  Document  to the
contrary notwithstanding,  the maximum liability of each Guarantor hereunder and
under the other Loan Documents  shall in no event exceed the amount which can be
guaranteed by such Guarantor under applicable federal and state laws relating to
the  insolvency of debtors  (after  giving  effect to the right of  contribution
established in Section 2.2).

              (c)    Each Guarantor agrees that the Borrower  Obligations may at
any time and from  time to time  exceed  the  amount  of the  liability  of such
Guarantor  hereunder without impairing the guarantee contained in this Section 2
or affecting the rights and remedies of the Lender hereunder.

                                       5
<PAGE>

              (d)    The  guarantee  contained in this Section 2 shall remain in
full force and effect until all the Borrower  Obligations and the obligations of
each Guarantor  under the guarantee  contained in this Section 2 shall have been
indefeasibly  satisfied  by payment in full,  notwithstanding  that from time to
time during the term of the Security Agreement the Borrower may be free from any
Borrower Obligations.

              (e)    No payment made by the Borrower,  any Guarantor,  any other
guarantor  or any other  Person or received or  collected by the Lender from the
Borrower,  any Guarantor,  any other  guarantor or any other Person by virtue of
any action or proceeding or any set-off or  appropriation  or application at any
time or from  time to time  shall  be  deemed  to  modify,  reduce,  release  or
otherwise   affect  the  liability  of  any  Guarantor   hereunder  which  shall
notwithstanding  any such payment (other than any payment made by such Guarantor
in respect of the Borrower Obligations or any payment received or collected from
such  Guarantor in respect of the Borrower  Obligations),  remain liable for the
Borrower  Obligations up to the maximum  liability of such  Guarantor  hereunder
until the Borrower Obligations are paid in full.

       2.2    RIGHT OF  CONTRIBUTION.  Each Guarantor  hereby agrees that to the
extent that a Guarantor shall have paid an amount hereunder which would, but for
this provision, render such Guarantor insolvent for purposes of state or federal
fraudulent conveyance laws, such Guarantor shall be entitled to seek and receive
contribution  from and against any other Guarantor  hereunder to the extent such
contribution would not render such other Guarantor  insolvent.  Each Guarantor's
right of  contribution  shall be subject to the terms and  conditions of Section
2.3.  The  provisions  of  this  Section  2.2  shall  in no  respect  limit  the
obligations and  liabilities of any Guarantor to the Lender,  and each Guarantor
shall  remain  liable  to the  Lender  for the full  amount  guaranteed  by such
Guarantor hereunder.

       2.3    NO SUBROGATION.  Notwithstanding any payment made by any Guarantor
hereunder or any set-off or application of funds of any Guarantor by Lender,  no
Guarantor  shall be  entitled  to be  subrogated  to any of the rights of Lender
against  the  Borrower  or any other  Guarantor  or any  collateral  security or
guarantee  or right of offset  held by Lender for the  payment  of the  Borrower
Obligations,   nor  shall  any  Guarantor  seek  or  be  entitled  to  seek  any
contribution  or  reimbursement  from the  Borrower  or any other  Guarantor  in
respect of payments made by such Guarantor hereunder, until all amounts owing to
Lender by the Borrower on account of the Borrower  Obligations are  indefeasibly
paid in full.  If any amount  shall be paid to any  Guarantor on account of such
subrogation  rights at any time when all of the Borrower  Obligations  shall not
have been indefeasibly paid in full, such amount shall be held by such Guarantor
in trust for Lender,  segregated from other funds of such Guarantor,  and shall,
forthwith  upon receipt by such  Guarantor be turned over to Lender in the exact
form received by such Guarantor  (duly indorsed by such Guarantor to Lender,  if
required),  to be applied against the Borrower  Obligations,  whether matured or
unmatured, in such order as Lender may determine.

       2.4    AMENDMENTS,  ETC. WITH RESPECT TO THE BORROWER  OBLIGATIONS.  Each
Guarantor shall remain obligated  hereunder  notwithstanding  that,  without any
reservation  of rights  against any Guarantor  and without  notice to or further
assent by any Guarantor, any demand for payment

                                       6
<PAGE>

of any of the Borrower Obligations made by Lender may be rescinded by Lender and
any of the Borrower Obligations continued, and the Borrower Obligations,  or the
liability of any other Person upon or for any part  thereof,  or any  collateral
security or  guarantee  therefor or right of offset with respect  thereto,  may,
from time to time, in whole or in part, be renewed, extended, amended, modified,
accelerated,  compromised,  waived,  surrendered or released by Lender,  and the
Note,  Security  Agreement and the other Loan Documents and any other  documents
executed  and  delivered  in  connection  therewith  may be  amended,  modified,
supplemented  or  terminated,  in  whole  or in  part,  as the  Lender  may deem
advisable from time to time, and any collateral security,  guarantee or right of
offset at any time held by Lender for the  payment of the  Borrower  Obligations
may be sold, exchanged,  waived,  surrendered or released. Lender shall not have
any obligation to protect,  secure,  perfect or insure any Lien at any time held
by it as security for the Borrower Obligations or for the guarantee contained in
this Section 2 or any property subject thereto.

       2.5    GUARANTEE  ABSOLUTE AND  UNCONDITIONAL.  Each Guarantor waives any
and all  notice of the  creation,  renewal,  extension  or accrual of any of the
Borrower  Obligations  and  notice of or proof of  reliance  by Lender  upon the
guarantee  contained in this Section 2 or acceptance of the guarantee  contained
in this Section 2; the Borrower Obligations, and any of them, shall conclusively
be deemed to have been created,  contracted or incurred,  or renewed,  extended,
amended or waived,  in reliance upon the guarantee  contained in this Section 2;
and all  dealings  between the Borrower  and any of the  Guarantors,  on the one
hand, and Lender, on the other hand, likewise shall be conclusively  presumed to
have been had or  consummated  in reliance upon the guarantee  contained in this
Section 2. Each Guarantor waives  diligence,  presentment,  protest,  demand for
payment and notice of default or  nonpayment  to or upon the  Borrower or any of
the  Guarantors  with  respect  to  the  Borrower  Obligations.  Each  Guarantor
understands  and agrees that the guarantee  contained in this Section 2 shall be
construed as a continuing,  absolute and unconditional guarantee of payment, and
not of collection,  without regard to (a) the validity or  enforceability of the
Note,  Security  Agreement  or any  other  Loan  Document,  any of the  Borrower
Obligations or any other collateral  security  therefor or guarantee or right of
offset with respect thereto at any time or from time to time held by Lender, (b)
any  defense,  set-off  or  counterclaim  (other  than a defense  of  payment or
performance)  which  may at any  time  be  available  to or be  asserted  by the
Borrower  or any other  Person  against  Lender,  or (c) any other  circumstance
whatsoever  (with or without  notice to or  knowledge  of the  Borrower  or such
Guarantor) which constitutes,  or might be construed to constitute, an equitable
or legal  discharge of the Borrower  for the  Borrower  Obligations,  or of such
Guarantor  under the guarantee  contained in this Section 2, in bankruptcy or in
any other instance.  When making any demand hereunder or otherwise  pursuing its
rights and remedies  hereunder  against any Guarantor,  Lender may, but shall be
under no obligation to, make a similar demand on or otherwise pursue such rights
and remedies as it may have  against the  Borrower,  any other  Guarantor or any
other Person or against any  collateral  security or guarantee  for the Borrower
Obligations  or any right of offset  with  respect  thereto,  and any failure by
Lender to make any such  demand,  to pursue such other  rights or remedies or to
collect any payments from the Borrower,  any other Guarantor or any other Person
or to realize upon any such collateral  security or guarantee or to exercise any
such right of offset, or any release of the Borrower, any other Guarantor or any
other Person or any such collateral security, guarantee or right of Offset shall
not relieve any Guarantor of any  obligation or liability  hereunder,  and shall
not impair or affect

                                       7
<PAGE>

the rights and remedies,  whether  express,  implied or available as a matter of
law, of Lender against any  Guarantor.  For the purposes  hereof  "demand" shall
include the commencement and continuance of any legal proceedings.

       2.6    REINSTATEMENT.  The  guarantee  contained  in this Section 2 shall
continue to be effective,  or be reinstated,  as the case may be, if at any time
payment, or any part thereof, of any of the Borrower Obligations is rescinded or
must otherwise be restored or returned Lender upon the  insolvency,  bankruptcy,
dissolution,  liquidation or reorganization of the Borrower or any Guarantor, or
upon or as a result of the appointment of a receiver,  intervener or conservator
of, or trustee or similar  officer  for,  the  Borrower or any  Guarantor or any
substantial part of its property, or otherwise,  all as though such payments had
not been made.

       2.7    PAYMENTS. Each Guarantor hereby guarantees that payments hereunder
will be paid to the Lender without  set-off or  counterclaim in Dollars at 39400
Woodward Avenue, Suite 250, Bloomfield Hills, Michigan 48304.

                      SECTION 3. GRANT OF SECURITY INTEREST

       3.1    (a)    Each  Grantor  hereby  grants  to the  Lender,  a  security
interest in (and pledges of ownership and other interests, as applicable) all of
the  following  property  now owned or at any time  hereafter  acquired  by such
Grantor  or in  which  such  Grantor  now has or at any time in the  future  may
acquire  any right,  title or  interest  (collectively,  the  "Collateral"),  as
collateral security for the prompt and complete payment and performance when due
(whether at the stated maturity, by acceleration or otherwise) of such Grantor's
Obligations:

              (a)    all Accounts;

              (b)    all Chattel Paper;

              (c)    all Documents;

              (d)    all  Equipment  (other  than  Equipment  secured  by a Lien
       permitted pursuant to Sections 8.3(f),  8.3(g), 8.3(h) and 8.3(k) of that
       certain Credit  Agreement dated December 31, 2000 (as amended,  restated,
       refinanced  or other  modified  from time to time)  between  Borrower and
       various other  financial  institutions  (together  with their  respective
       successors  and  assigns),   and  Bank  of  America,  N.A.  (the  "Credit
       Agreement");

              (e)    all General Intangibles;

              (f)    all Instruments;

              (g)    all Intellectual Property;

              (h)    all Inventory;

                                       8
<PAGE>

              (i)    all Pledged Securities;

              (j)    all books and records pertaining to the Collateral; and

              (k)    to the extent not  otherwise  included,  all  Proceeds  and
       products of any and all of the foregoing and all collateral  security and
       guarantees given by any Person with respect to any of the foregoing.

Notwithstanding  the  foregoing to the  contrary,  Collateral  shall not include
ownership  or other  interests  in the  Persons  listed  in  Schedule  I hereto,
property which is subject to an agreement that expressly  prohibits the granting
of a Lien that is permitted under Section 8.3 of the Credit Agreement,  or which
would,  as a result of granting a Lien in such  property,  cause a default under
any such permitted Lien.

              (b)    To further secure the payment,  performance  and observance
of the Obligations of each Grantor hereunder,  each Grantor hereby  collaterally
assigns to Lender all of such Grantor's right,  title and interest in, under and
to any Leases to which such  Grantor is a party,  except to the extent that such
collateral  assignment,  in and of itself,  is  prohibited  by the terms of such
Lease or would  constitute a default  under such lease.  This  Assignment is for
collateral  security  purposes only. So long as no Event of Default has occurred
and is  continuing,  such Grantor shall have the right to retain,  use and enjoy
all rights  under  each such  Lease,  including  the right to use and occupy the
premises subject to the Lease.

              (c)    Notwithstanding  anything to the contrary,  this  Guarantee
and Collateral  Agreement  shall be subject to and  subordinate to the liens and
rights  granted  in the  Amended  and  Restated  Credit  Agreement,  dated as of
December  31,  2000  as  amended,   among  the   Borrower,   various   financial
institutions,  LaSalle Bank National Association, American National Bank & Trust
Company of Chicago and Bank of America (the "Credit Agreement").

                    SECTION 4. REPRESENTATIONS AND WARRANTIES

       To induce the Lender to enter into the Letter Agreement and to induce the
Lender  to make  the  Loan  to the  Borrower  thereunder,  each  Grantor  hereby
represents and warrants to Lender that:

       4.1    REPRESENTATIONS   IN  CREDIT  AGREEMENT.   In  the  case  of  each
Guarantor,  the  representations  and  warranties  set forth in Section 5 of the
Credit  Agreement as they relate to such Guarantor,  or to the Loan Documents to
which such Guarantor is a party, each of which is hereby  incorporated herein by
reference,  are true and  correct,  and the Lender  shall be entitled to rely on
each of them as if they were fully set forth herein and made to Lender, provided
that each reference in each such  representation  and warranty to the Borrower's
knowledge  shall,  for the  purposes  of this  Section  4.1,  be  deemed to be a
reference to such Guarantor's knowledge.

       4.2    TITLE: NO OTHER LIENS. Except for the security interest granted to
the Lender pursuant

                                       9
<PAGE>

to this  Agreement and the other Liens  permitted to exist on the  Collateral by
the Credit  Agreement,  such Grantor owns each item of the  Collateral  free and
clear of any and all Liens or claims of others. No financing  statement or other
public notice with respect to all or any part of the Collateral is on file or of
record in any  public  office,  except  such as have been  filed in favor of the
Lenders under the Credit Agreement,  for the benefit of the Lender,  pursuant to
this Agreement or as are permitted by the Credit Agreement,  Security  Agreement
or as they relate to obligations  being paid on or about the date hereof (all of
which obligations are being paid in full on the Closing Date.)

       4.3    PERFECTED PRIORITY LIENS. The security  interests,  subject to the
Security Agreement granted pursuant to this Agreement (a) upon completion of the
filings and other  actions  specified  on SCHEDULE 3 (which,  in the case of all
filings and other documents referred to on said Schedule, have been delivered to
the Lender in completed and duly executed form) will  constitute  valid,  and to
the extent liens  thereon can be perfected by the filings and actions  specified
on Schedule 3, perfected security interests in all of the Collateral in favor of
the Lender, as collateral security for such Grantor's  Obligations,  enforceable
in  accordance  with the terms hereof  against all creditors of such Grantor and
any Persons purporting to purchase any Collateral from such Grantor, and (b) are
prior to all other Liens on the Collateral in existence on the date hereof other
than Liens permitted by the Credit  Agreement which have priority over the Liens
on the Collateral by operation of law.

       4.4    CHIEF  EXECUTIVE  OFFICE.  On  the  date  hereof,  such  Grantor's
jurisdiction of organization  and the location of such Grantor's chief executive
office or sole place of business are specified on SCHEDULE 4.

       4.5    INVENTORY AND EQUIPMENT.  On the date hereof the Inventory and the
Equipment (other than mobile goods) are kept at the locations listed on SCHEDULE
5.

       4.6    FARM  PRODUCTS.  None  of the  Collateral  constitutes,  or is the
              Proceeds of Farm Products.

       4.7    PLEDGED  SECURITIES.  (a) The shares of Pledged  Stock  pledged by
such Grantor hereunder  constitute all the issued and outstanding  shares of all
classes of the Capital Stock of each Subsidiary owned by such Grantor or, in the
case of any  Subsidiary  that is a Foreign  Subsidiary,  66% of the  issued  and
outstanding shares of Capital Stock of such Subsidiary.

              (b)    All the  shares  of the  Pledged  Stock  have been duly and
validly issued and are fully paid and nonassessable.

              (c)    Each  of  the  Pledged  Notes  executed  by  Borrower  or a
Restricted  Subsidiary  constitutes  a  legal,  valid  and  binding  obligation,
enforceable in accordance with its terms,  subject to the effects of bankruptcy,
insolvency, fraudulent conveyance, reorganization,  moratorium and other similar
laws relating to or affecting  creditors'  rights  generally,  general equitable
principles  (whether  considered  in a  proceeding  in  equity or at law) and an
implied covenant of good faith and fair dealing.

                                       10
<PAGE>

              (d)    Such Grantor is the record and beneficial owner of, and has
good and marketable  title to, the Pledged  Securities  pledged by it hereunder,
free of any and all  Liens or  options  in favor of,  or  claims  of,  any other
Person,  except the security  interest  created by this  Agreement and Liens not
prohibited by the Credit Agreement.

       4.8    RECEIVABLES.  (a) No amount  payable to such  Grantor  under or in
connection  with any  Receivable is evidenced by any Instrument or Chattel Paper
which has not been delivered to the Lender.

              (b)    The amounts  represented by such Grantor to the Lender from
time to time as owing to such Grantor in respect of the Receivables will at such
times be accurate in all material respects.

       4.9    INTELLECTUAL   PROPERTY.   (a)   SCHEDULE  6  lists  all  material
Intellectual Property owned by such Grantor in its own name on the date hereof.

              (b)    On the date  hereof,  all  material  Intellectual  Property
owned or used by such Grantor is valid,  subsisting,  unexpired and enforceable,
has not been abandoned;  and to the Grantor's  knowledge,  does not, and has not
been alleged to, infringe the intellectual property rights of any other Person.

              (c)    Except to the  extent  granted  in the  ordinary  course of
business,  on the date hereof none of the Intellectual Property owned or used by
such Grantor is the subject of any licensing or franchise  agreement pursuant to
which such Grantor is the licensor or franchiser.

              (d)    No holding,  decision or judgment has been  rendered by any
Governmental Authority which would limit, cancel or question the validity of, or
such  Grantor's  rights  in,  any  Intellectual  Property  owned or used by such
Grantor in any  respect  that is  reasonably  likely to have a material  adverse
effect.

              (e)    Except  as  set  forth  in  Schedule   5.9  to  the  Credit
Agreement,  no action or  proceeding  is pending,  or, to the  knowledge of such
Grantor, threatened, on the date hereof (i) seeking to limit, cancel or question
the validity of any material Intellectual Property owned or used by such Grantor
or such  Grantor's  ownership  interest  therein,  and (ii) which is  reasonably
likely  to have a  material  adverse  effect  on the  value of any  Intellectual
Property owned or used by such Grantor.

                              SECTION 5. COVENANTS

       Each Grantor  covenants and agrees with the Lender,  that, from and after
the date of this Agreement until the Obligations shall have been paid in full:

       5.1    COVENANTS IN SECURITY  AGREEMENT.  In the case of each  Guarantor,
such  Guarantor  shall take, or shall  refrain from taking,  as the case may be,
each action that is necessary  to be taken or not taken,  as the case may be, so
that no Default or Event of Default is caused by the

                                       11
<PAGE>

failure  to take such  action or to  refrain  from  taking  such  action by such
Guarantor or any of its Subsidiaries.

       5.2    DELIVERY OF INSTRUMENTS  AND CHATTEL PAPER.  If any amount payable
under or in connection with any of the Collateral  shall be or become  evidenced
by any  Instrument or Chattel Paper,  such  Instrument or Chattel Paper shall be
immediately  delivered to the Lender,  duly indorsed in a manner satisfactory to
the Lender, to be held as Collateral pursuant to this Agreement.

       5.3    MAINTENANCE  OF  INSURANCE.  (a) Such Grantor  will, or will cause
Borrower to,  comply with the terms and  provisions  of the  Security  Agreement
governing the maintenance of insurance.

       5.4    PAYMENT OF OBLIGATIONS.  Except to the extent otherwise  expressly
permitted by the Security  Agreement,  such Grantor will pay and  discharge,  or
otherwise satisfy,  at or before maturity or before they become  delinquent,  as
the case may be,  all  taxes,  assessments  and  governmental  charges or levies
imposed upon the  Collateral  or in respect of income or profits  therefrom,  as
well as all claims of any kind (including, without limitation, claims for labor,
materials and supplies)  against or with respect to the Collateral,  except that
no such charge need be paid if the amount or validity thereof is currently being
contested in good faith by appropriate proceedings,  reserves in conformity with
GAAP with respect  thereto  have been  provided on the books of such Grantor and
such  proceedings  could  not  reasonably  be  expected  to  result in the sale,
forfeiture  or loss of any material  portion of the  Collateral  or any interest
therein.

       5.5    MAINTENANCE OF PERFECTED SECURITY INTEREST: FURTHER DOCUMENTATION.
(a) Such Grantor shall maintain the security  interest created by this Agreement
as a perfected (to the extent  perfected by the actions or filings  described in
SCHEDULE 3 hereto) security  interest having at least the priority  described in
Section  4.3 and shall  defend  such  security  interest  against the claims and
demands of all Persons  whomsoever  other than the holders of Liens permitted by
the Security Agreement.

              (b)    Such  Grantor  will furnish to the Lender from time to time
statements and schedules  further  identifying and describing the Collateral and
such other reports in connection  with the Collateral in each case as Lender may
reasonably request, all in reasonable detail.

              (c)    At any time and from time to time, upon the written request
of the  Lender,  and at the sole  expense of such  Grantor,  such  Grantor  will
promptly  and  duly  execute  and  deliver,  and  have  recorded,  such  further
instruments  and  documents  and take such  further  actions  as the  Lender may
reasonably  request for the purpose of obtaining or preserving the full benefits
of this  Agreement  and of the  rights  and powers  herein  granted,  including,
without limitation, the filing of any financing or continuation statements under
the  Uniform   Commercial  Code  (or  other  similar  laws)  in  effect  in  any
jurisdiction with respect to the security interests created hereby.

       5.6    CHANGES IN LOCATIONS,  NAME,  ETC.  Such Grantor will not,  except
upon 15 days'

                                       12
<PAGE>

prior  written  notice  to the  Lender  and  delivery  to the  Lender of (a) all
additional  executed  financing   statements  and  other  documents   reasonably
requested by the Lender to maintain the validity, perfection and priority of the
security  interests  provided  for  herein  and  (b) if  applicable,  a  written
supplement to SCHEDULE 5 showing any additional  location at which  Inventory or
Equipment shall be kept:

              (i)    permit any of the  Inventory  or  Equipment to be kept at a
       location  other than those  listed on SCHEDULE 5 (or such other  location
       where appropriate filings have been made);

              (ii)   change the location of its chief  executive  office or sole
       place of business from that referred to in Section 4.4; or

              (iii)  change its name, identity or corporate structure to such an
       extent that any  financing  statement  filed by the Lender in  connection
       with this Agreement would become misleading.

       5.7    NOTICES.   Such  Grantor  will  advise  the  Lender  promptly,  in
reasonable detail, of:

              (a)    any Lien (other than security  interests  created hereby or
Liens permitted under the Credit Agreement and Security Agreement) on any of the
Collateral  which would  adversely  affect the ability of the Lender to exercise
any of its remedies hereunder; and

              (b)    of the occurrence of any other event which could reasonably
be  expected to have a material  adverse  effect on the  aggregate  value of the
Collateral or on the security interests created hereby.

       5.8    PLEDGED   SECURITIES.   (a)  Except  as  provided  in  the  Credit
Agreement, if such Grantor shall become entitled to receive or shall receive any
stock certificate (including, without limitation, any certificate representing a
stock  dividend  or a  distribution  in  connection  with any  reclassification,
increase or reduction of capital or any  certificate  issued in connection  with
any  reorganization),  option or rights in respect of the  Capital  Stock of any
Issuer,  whether in addition to, in  substitution  of, as a conversion of, or in
exchange for, any shares of the Pledged Stock, or otherwise in respect  thereof,
such  Grantor  shall  accept the same as the agent of the Lender and the Lender,
hold the same in trust  for the  Lender  and the  Lender  and  deliver  the same
forthwith  to the  Lender in the exact  form  received,  duly  indorsed  by such
Grantor  to the  Lender,  if  required,  together  with an undated  stock  power
covering  such  certificate  duly executed in blank by such Grantor and with, if
the Lender so requests,  signature guaranteed, to be held by the Lender, subject
to the terms hereof, as additional collateral security for the Obligations.  Any
sums paid upon or in respect of the Pledged  Securities  upon the liquidation or
dissolution  of any  Issuer  shall be  deemed  to be  Dispositions  and shall be
treated in accordance  with the terms and provisions of the Security  Agreement.
Notwithstanding  anything to the contrary herein,  in no event shall any Grantor
be  required  to pledge more than 66% of the  outstanding  Capital  Stock of any
Foreign Subsidiary.

              (b)    Except as  permitted  in the  Credit  Agreement  and to the
extent prohibited

                                       13
<PAGE>

by the Security Agreement, such Grantor will not (i) vote to enable, or take any
other action to permit, any Issuer to issue any stock or other equity securities
of any nature or to issue any other securities  convertible into or granting the
right to purchase or exchange  for any stock or other equity  securities  of any
nature of any  Issuer,  (ii) sell,  assign,  transfer,  exchange,  or  otherwise
dispose of, or grant any option  with  respect  to, the  Pledged  Securities  or
Proceeds  thereof (except pursuant to a transaction  expressly  permitted by the
Credit Agreement),  (iii) create, incur or permit to exist any Lien or option in
favor  of,  or any claim of any  Person  with  respect  to,  any of the  Pledged
Securities or Proceeds thereof,  or any interest therein, or (iv) enter into any
agreement or undertaking  (other than the Loan Documents)  restricting the right
or ability of such Grantor or the Lender to sell,  assign or transfer any of the
Pledged Securities or Proceeds thereof.

              (c)    Except  to the  extent  of  the  provisions  of the  Credit
Agreement,  concurrently  with the  pledge of  Pledged  Stock in  respect of any
Issuer that is a partnership or limited liability company,  the relevant Grantor
will send to such Issuer written instructions confirming that such Pledged Stock
has been pledged to Lender and  requesting  such Issuer to deliver to the Lender
an acknowledgment  in form and substance  satisfactory to Lender confirming that
such Issuer has registered the pledge effected by this Agreement on its books.

              (d)    In the case of each Grantor which is an Issuer, such Issuer
agrees that (i) it will be bound by the terms of this Agreement  relating to the
Pledged  Securities issued by it and will comply with such terms insofar as such
terms are  applicable to it, (ii) it will notify the Lender  promptly in writing
of the occurrence of any of the events  described in Section 5.8(a) with respect
to the Pledged  Securities  issued by it and (iii) the terms of Sections  6.3(c)
and 6.7 shall apply to it,  MUTATIS  MUTANDIS,  with respect to all actions that
may be  required of it  pursuant  to Section  6.3(c) or 6.7 with  respect to the
Pledged Securities issued by it.

       5.9    RECEIVABLES.  (a) Other than in the  ordinary  course of  business
consistent with its past practice or as permitted by the Credit Agreement,  such
Grantor  will  not  (i)  grant  any  extension  of the  time of  payment  of any
Receivable,  (ii)  compromise  or settle any  Receivable  for less than the full
amount thereof,  (iii) release,  wholly or partially,  any Person liable for the
payment of any Receivable,  (iv) allow any credit or discount  whatsoever on any
Receivable or (v) amend,  supplement or modify any Receivable in any manner that
could adversely affect the value thereof,

              (b)    Such  Grantor  will  deliver  to the  Lender a copy of each
material demand,  notice or document received by it that questions or calls into
doubt the validity or  enforceability of more than 5% of the aggregate amount of
the then outstanding Receivables of the Borrower.

       5.10   INTELLECTUAL  PROPERTY.  For so long as no  Event of  Default  has
occurred and is continuing,  such Grantor shall protect and enhance the value of
all  Intellectual  Property  in  accordance  with  prudent  business  practices;
PROVIDED that at no time shall Borrower permit the tradename  "Grubb & Ellis" to
be  abandoned  or  altered in any  manner.  Upon the  occurrence  and during the
continuance of an Event of Default:

              (a)    Such Grantor  (either itself or through its licensees) will
(i) continue to use

                                       14
<PAGE>

each material  Trademark now or hereafter owned or used by such Grantor in order
to  maintain  such  material  Trademark  in full  force  free  from any claim of
abandonment  for non-use,  (ii)  maintain as in the past the quality of products
and services  offered under such  Trademark,  (iii) use such  Trademark with the
appropriate notice of registration and all other notices and legends required by
applicable  Requirements  of Law,  (iv)  not  adopt  or use any  mark  which  is
confusingly  similar or a colorable  imitation of such material Trademark unless
the Lender shall obtain a perfected  security  interest in such mark pursuant to
this Agreement,  and (v) not (and not permit any licensee or sublicensee thereof
to) do any act or knowingly  omit to do any act whereby such material  Trademark
may become invalidated or impaired in any way.

              (b)    Such Grantor  (either itself or through its licensees) will
not do any act, or omit to do any act, whereby any material Patent owned or used
by such Grantor may become forfeited, abandoned or dedicated to the public.

              (c)    Such Grantor  (either  itself or through its licensees) (i)
will employ each material  Copyright owned or used by such Grantor and (ii) will
not (and will not permit any licensee or  sublicensee  thereof to) do any act or
knowingly omit to do any act whereby any material portion of such Copyrights may
become invalidated or otherwise  impaired.  Such Grantor will not (either itself
or through  its  licensees)  do any act  whereby  any  material  portion of such
Copyrights may fall into the public domain.

              (d)    Such Grantor (either itself or through  licensees) will not
do any act that knowingly uses any material  Intellectual Property owned or used
by such  Grantor  to  infringe  the  intellectual  property  rights of any other
Person.

              (e)    Such  Grantor  will  notify  the Lender  immediately  if it
knows, or has reason to know,  that any application or registration  relating to
any  material  Intellectual  Property  owned or used by such  Grantor may become
forfeited, abandoned or dedicated to the public, or of any adverse determination
or development (including,  without limitation,  the institution of, or any such
determination  or development in, any proceeding in the United States Patent and
Trademark Office, the United States Copyright Office or any court or tribunal in
any country)  regarding  such  Grantor's  ownership  of, or the validity of, any
material  Intellectual  Property owned or used by such Grantor or such Grantor's
right to register the same or to own and maintain the same.

              (f)    Whenever  such  Grantor,  either by itself or  through  any
agent,  employee,  licensee  or  designee,  shall  file an  application  for the
registration  of any  Intellectual  Property  with the United  States Patent and
Trademark  Office,  the United States  Copyright Office or any similar office or
agency in any other country or any political  subdivision thereof,  such Grantor
shall report such filing to the Lender  within five (5) Business  Days after the
last day of the fiscal quarter in which such filing occurs.  Upon request of the
Lender, such Grantor shall execute and deliver,  and have recorded,  any and all
agreements,  instruments,  documents,  and papers as the  Lender may  request to
evidence the Lender's and the Lender' security interest in any Copyright, Patent
or Trademark and the goodwill and general  intangibles of such Grantor  relating
thereto or  represented  thereby.

                                       15
<PAGE>

              (g)    Such Grantor will take all reasonable and necessary  steps,
including, without limitation, in any proceeding before the United States Patent
and Trademark  Office,  the United States Copyright Office or any similar office
or agency in any other country or any political subdivision thereof, to maintain
and pursue each  application  (and to obtain the relevant  registration)  and to
maintain each  registration of the material  Intellectual  Property,  including,
without  limitation,  as to  Trademarks,  filing of  applications  for  renewal,
affidavits of use and affidavits of incontestability and, as to Patents,  paying
maintenance fees.

              (h)    In the event that any material  Intellectual Property owned
or used by such  Grantor  is  infringed,  misappropriated  or diluted by a third
party, such Grantor shall (i) take such actions as such Grantor shall reasonably
deem appropriate under the  circumstances to protect such Intellectual  Property
and (ii) if such Intellectual  Property is of material economic value,  promptly
notify  the  Lender   after  it  learns   thereof  and  sue  for   infringement,
misappropriation or dilution, to seek injunctive relief where appropriate and to
recover any and all damages for such infringement, misappropriation or dilution.

                         SECTION 6. REMEDIAL PROVISIONS

       6.1    CERTAIN MATTERS RELATING TO RECEIVABLES. (a) Except as provided in
the Credit Agreement, at any time and from time to time after the occurrence and
during the  continuance of an Event of Default,  the Lender shall have the right
to make test  verifications  of the  Receivables  in any manner and  through any
medium that it reasonably  considers  advisable,  and each Grantor shall furnish
all such assistance and information as the Lender may require in connection with
such test verifications.  At any time and from time to time after the occurrence
and during the  continuation of an Event of Default,  upon the Lender's  request
and at the expense of the relevant Grantor, such Grantor shall cause independent
public accountants or others satisfactory to the Lender to furnish to the Lender
reports  showing  reconciliations,  aging and test  verifications  of, and trial
balances  for, the  Receivables.  Notwithstanding  anything else to the contrary
contained  herein, at any time other than during the occurrence and continuation
of an Event of Default,  at the expense of the Lender, (i) the Lender shall have
the  right to make test  verifications  of the  Receivables  in any  manner  and
through any medium that it  reasonably  considers  advisable,  and each  Grantor
shall furnish all such  assistance and  information as the Lender may require in
connection with such test verifications, and (ii) upon the Lender's request such
Grantor shall cause independent public accountants or others satisfactory to the
Lender to furnish to the Lender reports showing reconciliations,  aging and test
verifications of, and trial balances for, the Receivables.

              (b)    Except as  provided  in the  Credit  Agreement,  the Lender
hereby authorizes each Grantor to collect such Grantor's Receivables, subject to
the Lender's  direction and control and the Lender may curtail or terminate said
authority  at any time after the  occurrence  and during the  continuance  of an
Event of Default.  At  Lender's  request,  any  payments  of  Receivables,  when
collected by any Grantor,  (i) shall be forthwith (and, in any event, within two
Business  Days)  deposited  by such  Grantor  in the exact form  received,  duly
endorsed by such  Grantor to the Lender if  required,  in a  Collateral  Account
maintained under the

                                       16
<PAGE>

sole dominion and control of the Lender, subject to withdrawal by the Lender for
the account of the Lender only as  provided  in Section  6.5,  and (ii) until so
turned over,  shall be held by such Grantor in trust for the Lender,  segregated
from other funds of such Grantor.  Each such deposit of Proceeds of  Receivables
shall be accompanied by a report identifying in reasonable detail the nature and
source of the payments included in the deposit.

              (c)    At the Lender's request,  each Grantor shall deliver to the
Lender  all  original  and other  documents  evidencing,  and  relating  to, the
agreements  and  transactions  which  gave rise to the  Receivables,  including,
without limitation, all original orders, invoices and shipping receipts.

       6.2    COMMUNICATIONS  WITH OBLIGORS;  GRANTORS REMAIN LIABLE. (a) Except
as provided in the Credit  Agreement,  the Lender in its own name or in the name
of others may at any time after the occurrence and during the  continuance of an
Event of Default  communicate  with obligors under the Receivables to verify the
existence, amount and terms of any Receivables.

              (b)    Upon  the  request  of the  Lender  at any time  after  the
occurrence and during the continuance of an Event of Default, each Grantor shall
notify  obligors on the Receivables  that the Receivables  have been assigned to
the Lender and that  payments in respect  thereof  shall be made directly to the
Lender.

              (c)    Anything  herein  to  the  contrary  notwithstanding,  each
Grantor shall remain liable under each of the Receivables to observe and perform
all  the  conditions  and  obligations  to  be  observed  and  performed  by  it
thereunder,  all in  accordance  with the  terms of any  agreement  giving  rise
thereto.  Lender shall not have any obligation or liability under any Receivable
(or any  agreement  giving  rise  thereto)  by reason of or arising  out of this
Agreement or the receipt by Lender of any payment  relating  thereto,  nor shall
Lender be  obligated  in any manner to  perform  any of the  obligations  of any
Grantor  under or  pursuant  to any  Receivable  (or any  agreement  giving rise
thereto),  to make any  payment,  to make any  inquiry  as to the  nature or the
sufficiency  of  any  payment  received  by it or as to the  sufficiency  of any
performance by any party  thereunder,  to present or file any claim, to take any
action to enforce any performance or to collect the payment of any amounts which
may have  been  assigned  to it or to which  it may be  entitled  at any time or
times.

       6.3    PLEDGED STOCK.  (a) Unless an Event of Default shall have occurred
and be continuing and Lender shall have given notice to the relevant  Grantor of
its intent to exercise its corresponding rights pursuant to Section 6.3(b), each
Grantor shall be permitted to receive all cash  dividends paid in respect of the
Pledged  Stock and all payments  made in respect of the Pledged  Notes,  in each
case paid in the normal course of business of the relevant Issuer and consistent
with past practice,  to the extent permitted in the Security  Agreement,  and to
exercise all voting and corporate rights with respect to the Pledged Securities;
PROVIDED,  HOWEVER,  that no vote shall be cast or corporate  right exercised or
other action taken which would be  inconsistent  with or result in any violation
of any  provision of the Security  Agreement,  this  Agreement or any other Loan
Document.

                                       17
<PAGE>

              (b)    If an Event of Default  shall occur and be  continuing  and
Lender  shall give notice of its intent to exercise  such rights to the relevant
Grantor or Grantors,  (i) the Lender shall have the right to receive any and all
cash  dividends,  payments  or other  Proceeds  paid in respect  of the  Pledged
Securities and make  application  thereof to the Obligations in such order as it
may determine, and (ii) any or all of the Pledged Securities shall be registered
in the name of  Lender  and  Lender  may  thereafter  exercise  (x) all  voting,
corporate and other rights pertaining to such Pledged  Securities at any meeting
of  shareholders  of the relevant Issuer or Issuers or otherwise and (y) any and
all  rights of  conversion,  exchange  and  subscription  and any other  rights,
privileges or options  pertaining  to such Pledged  Securities as if it were the
absolute owner thereof (including,  without limitation, the right to exchange at
its  discretion  any  and  all  of  the  Pledged  Securities  upon  the  merger,
consolidation  reorganization,  recapitalization  or other fundamental change in
the  corporate  structure of any Issuer,  or upon the exercise by any Grantor or
Lender of any right,  privilege or option pertaining to such Pledged Securities,
and in connection therewith, the right to deposit and deliver any and all of the
Pledged Securities with any committee,  depositary, transfer agent, registrar or
other designated  agency upon such terms and condition as Lender may determine),
all without  liability except to account for property  actually  received by it,
but  Lender  shall  have no duty to any  Grantor  to  exercise  any such  right,
privilege  or option and shall not be  responsible  for any  failure to do so or
delay in so doing.

              (c)    Each Grantor hereby authorizes and instructs each Issuer of
any Pledged  Securities pledged by such Grantor hereunder to (i) comply with any
instruction  received by it from Lender in writing that (x) states that an Event
of Default has occurred  and is  continuing  and (y) is otherwise in  accordance
with the terms of this Agreement, without any other or further instructions from
such Grantor,  and each Grantor agrees that each Issuer shall be fully protected
in so complying,  and (ii) unless otherwise  expressly permitted hereby, pay any
dividends or other payments with respect to the Pledged  Securities  directly to
Lender.

       6.4    PROCEEDS TO BE TURNED OVER TO LENDER. If an Event of Default shall
occur and be  continuing,  in  addition  to the  rights of Lender  specified  in
Section 6.1 with respect to payments of  Receivables,  all Proceeds  received by
any Grantor  consisting of cash,  checks and other near-cash items shall be held
by such Grantor for Lender and shall, forthwith upon receipt by such Grantor and
upon the  request  of  Lender,  be turned  over to the  Lender in the exact form
received  by such  Grantor  (duly  indorsed by such  Grantor to the  Lender,  if
required).  All Proceeds received by the Lender hereunder shall be held by it in
a  Collateral  Account  maintained  under its sole  dominion  and  control.  All
Proceeds  while held by Lender in a  Collateral  Account (or by such  Grantor in
trust for the Lender and the Lender)  shall  continue  to be held as  collateral
security for all the Obligations and shall not constitute  payment thereof until
applied as provided in Section 6.5.

       6.5    APPLICATION  OF  PROCEEDS.  If an  Event  of  Default  shall  have
occurred and be continuing,  Lender shall apply all or any part of Proceeds held
in any Collateral  Account in payment of the Obligations in such order as it may
elect. Any balance of such Proceeds  remaining after the Obligations  shall have
been  paid in  full,  over to the  Borrower  or to  whomsoever  may be  lawfully
entitled to receive the same.

                                       18
<PAGE>

       6.6    CODE AND OTHER REMEDIES. If an Event of Default shall occur and be
continuing,  Lender may  exercise,  in addition to all other rights and remedies
granted  to them in this  Agreement  and in any other  instrument  or  agreement
securing,  evidencing or relating to the Obligations, all rights and remedies of
a secured  party under the Illinois  UCC or any other  applicable  law.  Without
limiting  the  generality  of the  foregoing,  the  Lender,  without  demand  of
performance or other demand,  presentment,  protest,  advertisement or notice of
any kind  (except any notice  required by law  referred to below) to or upon any
Grantor  or  any  other  Person  (all  and  each  of  which  demands,  defenses,
advertisements  and  notices  are  hereby  waived),  may in  such  circumstances
forthwith collect, receive,  appropriate and realize upon the Collateral, or any
part thereof,  and/or may forthwith sell, lease,  assign, give option or options
to purchase,  or  otherwise  dispose of and deliver the  Collateral  or any part
thereof (or  contract  to do any of the  foregoing),  in one or more  parcels at
public or private sale or sales,  at any exchange,  broker's  board or office of
Lender or elsewhere  upon such terms and conditions as it may deem advisable and
at such prices as it may deem best, for cash or on credit or for future delivery
without assumption of any credit risk. Lender shall have the right upon any such
public sale or sales, and, to the extent permitted by law, upon any such private
sale or sales, to purchase the whole or any part of the Collateral so sold, free
of any right or equity of  redemption  in any Grantor,  which right or equity is
hereby waived and released. Each Grantor further agrees, at Lender's request, to
assemble the  Collateral and make it available to the Lender at places which the
Lender shall reasonably select, whether at such Grantor's premises or elsewhere.
It shall  apply the net  proceeds  of any action  taken by it  pursuant  to this
Section 6.6,  after  deducting all  reasonable  costs and expenses of every kind
incurred in connection therewith or incidental to the care or safekeeping of any
of the  Collateral  or in any way  relating to the  Collateral  or the rights of
Lender hereunder, including, without limitation,  reasonable attorneys' fees and
disbursements,  to the payment in whole or in part of the  Obligations,  in such
order as the  Lender may elect,  and only after such  application  and after the
payment by the Lender of any other  amount  required  by any  provision  of law,
including, without limitation, Section 9-504(1)(c) of the Illinois UCC, need the
Lender account for the surplus,  if any, to any Grantor. To the extent permitted
by applicable  law, each Grantor  waives all claims,  damages and demands it may
acquire  against  Lender  arising  out of the  reasonable  exercise by it of any
rights  hereunder.  If any notice of a  proposed  sale or other  disposition  of
Collateral shall be required by law, such notice shall be deemed  reasonable and
proper if given at least 10 days before such sale or other disposition.

                            SECTION 7. MISCELLANEOUS

       7.1    AMENDMENTS  IN WRITING.  None of the terms or  provisions  of this
Agreement may be waived,  amended,  supplemented or otherwise modified except in
accordance with the Security Agreement.

       7.2    NOTICES.   All   notices,   demands,    instructions   and   other
communications  required  or  permitted  to be given to or made  upon any  party
hereto shall be in writing, shall be addressed as follows and for each Guarantor
as set forth on Schedule I, and shall be either (i) personally  delivered to the
party, (ii) sent by U.S. registered or certified mail, (iii) sent by a reputable
express mail company which  guarantees next day delivery,  or (iv) telecopied to
the respective  telecopier  numbers set forth herein.  Any party may redesignate
the address or telecopier number

                                       19
<PAGE>

to which  notices are to be sent to it by written  notice to the other  parties.
Notwithstanding  the  foregoing,  any notice which is in fact received  shall be
deemed to have been delivered pursuant to this Section, even if such delivery is
not accomplished in accordance with this Section.

       If to Lender:
                                 KOJAIAN FUNDING, L.L.C.
                                 c/o Kojaian Management Company'
                                 39400 Woodward Avenue, Suite 250
                                 Bloomfield Hills, MI  48304-2876
                                 Attn:  C. Michael Kojaian
                                 Telecopier No.  (248) 644-7620

       with a copy to (which shall not constitute notice):

                                 Carson Fischer, P.L.C.
                                 300 East Maple Road - Third Floor
                                 Birmingham, Michigan 48009
                                 Attn:  Robert M. Carson, Esq.
                                 Telecopier No.  (248) 644-1832

       If to Borrower:           Grubb & Ellis Company
                                 2215 Sanders Road, Suite 400
                                 Northbrook, Illinois  60062
                                 Attn:  Robert Walner
                                 Telecopier No.  (847) 753-9060

       with a copy to (which shall not constitute notice):

                                 Clifford A. Brandeis, Esq.
                                 Zuckerman, Gore & Brandeis, LLP
                                 900 3rd Avenue, 8th Floor
                                 New York, NY  10022-4728
                                 Attn: __________________________
                                 Telecopier No.  (212) 223-6433

       7.3    NO WAIVER BY COURSE OF CONDUCT.  CUMULATIVE REMEDIES. Lender shall
not by any act (except by a written instrument  pursuant to Section 7.1), delay,
indulgence,  omission or  otherwise be deemed to have waived any right or remedy
hereunder or to have  acquiesced in any Default or Event of Default.  No failure
to  exercise,  nor any delay in  exercising,  on the part of Lender,  any right,
power or privilege  hereunder  shall operate as a waiver  thereof.  No single or
partial exercise of any right,  power or privilege  hereunder shall preclude any
other or further exercise  thereof or the exercise of any other right,  power or
privilege.  A waiver  by Lender  of any  right or  remedy  hereunder  on any one
occasion shall not be construed as a bar to any right or

                                       20
<PAGE>

remedy which Lender would otherwise have on any future occasion.  The rights and
remedies herein provided are cumulative, may be exercised singly or concurrently
and are not exclusive of any other rights or remedies provided by law.

       7.4    ENFORCEMENT EXPENSES:  INDEMNIFICATION.  (a) To the same extent as
the Borrower would be required to do so pursuant to the Security Agreement, each
Guarantor  agrees to pay or reimburse  Lender for all its  reasonable  costs and
expenses  incurred in  collecting  against such  Guarantor  under the  guarantee
contained in Section 2 or otherwise  enforcing  or  preserving  any rights under
this  Agreement and the other Loan Documents to which such Guarantor is a party,
including, without limitation, the fees and disbursements of counsel to Lender.

              (b)    To the same extent as the Borrower  would be required to do
so pursuant to the Security Agreement, each Guarantor agrees to pay, and to save
the Lender harmless from, any and all liabilities  with respect to, or resulting
from any delay in paying, any and all stamp,  excise, sales or other taxes which
may be payable or determined to be payable with respect to any of the Collateral
or in connection with any of the transactions contemplated by this Agreement.

              (c)    Each Guarantor  agrees to pay, and to save Lender  harmless
from, any and all liabilities, obligations, losses, damages, penalties, actions,
judgments,  suits,  costs,  expenses  or  disbursements  of any  kind or  nature
whatsoever with respect to the execution, delivery, enforcement, performance and
administration  of this  Agreement to the same extent as the  Borrower  would be
required to do so pursuant the Security Agreement.

              (d)    The agreements in this Section 7.4 shall survive  repayment
of the Obligations  and all other amounts  payable under the Security  Agreement
and the other Loan Documents.

       7.5    SUCCESSORS AND ASSIGNS.  This Agreement  shall be binding upon the
successors  and assigns of each Grantor and shall inure to the benefit of Lender
and its successors and assigns; PROVIDED that no Grantor may assign, transfer or
delegate any of its rights or obligations under this Agreement without the prior
written consent of Lender.

       7.6    SET-OFF. Each Grantor hereby irrevocably  authorizes Lender at any
time and from time to time without  notice to such Grantor or any other Grantor,
any  such  notice  being  expressly  waived  by each  Grantor,  to  set-off  and
appropriate and apply any and all deposits (general or special,  time or demand,
provisional or final), in any currency,  and any other credits,  indebtedness or
claims,  in any currency,  in each case whether direct or indirect,  absolute or
contingent,  matured or unmatured, at any time held or owing by Lender to or for
the credit or the account of such  Grantor,  or any part thereof in such amounts
as Lender may elect,  against and on account of the  obligations and liabilities
of such Grantor to Lender  hereunder and claims of every nature and  description
of Lender  against such Grantor,  in any currency,  whether  arising  hereunder,
under the Security Agreement any other Loan Document or otherwise, as Lender may
elect,  whether  or Lender has made any demand for  payment  and  although  such
obligations, liabilities and claims may be contingent or unmatured. Lender shall
notify such Grantor

                                       21
<PAGE>

promptly of any such set-off and the application  made by Lender of the proceeds
thereof,  PROVIDED  that the  failure to give such  notice  shall not affect the
validity  of such  set-off  and  application.  The  rights of Lender  under this
Section 7.6 are in addition to other  rights and  remedies  (including,  without
limitation, other rights of set-off) which Lender may have.

       7.7    COUNTERPARTS. This Agreement may be executed by one or more of the
parties to this Agreement on any number of separate  counterparts  (including by
telecopy),  and all of said  counterparts  taken  together  shall be  deemed  to
constitute one and the same instrument.

       7.8    SEVERABILITY,  Any provision of this Agreement which is prohibited
or  unenforceable  in  any  jurisdiction  shall,  as to  such  jurisdiction,  be
ineffective  to the  extent  of such  prohibition  or  unenforceability  without
invalidating  the  remaining  provisions  hereof,  and any such  prohibition  or
unenforceability   in  any   Jurisdiction   shall  not   invalidate   or  render
unenforceable such provision in any other jurisdiction.

       7.9    SECTION HEADINGS.  The Section headings used in this Agreement are
for convenience of reference only and are not to affect the construction  hereof
or be taken into consideration in the interpretation hereof.

       7.10   INTEGRATION. This Agreement and the other Loan Documents represent
the agreement of the Grantors and the Lender with respect to the subject  matter
hereof and thereof, and there are no promises, undertakings,  representations or
warranties by Lender relative to subject matter hereof and thereof not expressly
set forth or referred to herein or in the other Loan Documents.

       7.11   GOVERNING LAW. THIS AGREEMENT  SHALL BE GOVERNED BY, AND CONSTRUED
AND  INTERPRETED IN ACCORDANCE  WITH,  THE LAW OF THE STATE OF ILLINOIS  WITHOUT
REGARD FOR ITS CONFLICTS OF LAW PRINCIPLES.

       7.12   SUBMISSION  TO  JURISDICTION:  WAIVERS,  Each  Grantor  and Lender
hereby irrevocably and unconditionally:

              (a)    submits for itself and its  property in any legal action or
       proceeding  relating to this  Agreement  and the other Loan  Documents to
       which it is a party,  or for  recognition and enforcement of any judgment
       in respect  thereof,  to the  non-exclusive  general  jurisdiction of the
       Courts of the State of  Illinois,  the  courts  of the  United  States of
       America for the Northern District of Illinois,  and appellate courts from
       any thereof;

              (b)    consents that any such action or proceeding  may be brought
       in such courts and waives any objection that it may now or hereafter have
       to the venue of any such action or  proceeding  in any such court or that
       such action or proceeding was brought in an inconvenient court and agrees
       not to plead or claim the same;

              (c)    agrees  that  service  of  process  in any such  action  or
       proceeding  may be effected by mailing a copy  thereof by  registered  or
       certified mail (or any substantially

                                       22
<PAGE>

       similar form of mail),  postage  prepaid,  to such Grantor at its address
       referred to in Section  7.2 or at such other  address of which the Lender
       shall have been notified pursuant thereto;

              (d)    agrees that nothing herein shall affect the right to effect
       service of process in any other  manner  permitted  by law or shall limit
       the right to sue in any other jurisdiction; and

              (e)    waives,  to the maximum  extent not  prohibited by law, any
       right it may have to claim or recover in any legal  action or  proceeding
       referred  to  in  this  Section  any  special,  exemplary,   punitive  or
       consequential damages.

       7.13   ACKNOWLEDGMENTS. Each Grantor hereby acknowledges that:

              (a)    it  has  been  advised  by  counsel  in  the   negotiation,
       execution and delivery of this  Agreement and the other Loan Documents to
       which it is a party;

              (b)    Lender has no  fiduciary  relationship  with or duty to any
       Grantor arising out of or in connection with this Agreement or any of the
       other Loan  Documents,  and the  relationship  between the  Grantors  and
       Lender is solely that of debtor and creditor; and

              (c)    no joint  venture  is  created  hereby or by the other Loan
       Documents or otherwise exists by virtue of the transactions  contemplated
       hereby among the Lender or among the Grantors and the Lender.

       7.14   WAIVER OF JURY TRIAL.  EACH GRANTOR AND LENDER HEREBY  IRREVOCABLY
AND  UNCONDITIONALLY  WAIVE  TRIAL BY JURY IN ANY  LEGAL  ACTION  OR  PROCEEDING
RELATING TO THIS  AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY  COUNTERCLAIM
THEREIN.

       7.15   ADDITIONAL GRANTORS.  Each future Subsidiary of the Borrower shall
become a Grantor for all purposes of this  Agreement upon execution and delivery
by such Subsidiary of an Assumption Agreement in the form of Annex 1 hereto.

       7.16   RELEASES,  (a) At  such  time  as  the  Loans,  the  Reimbursement
Obligations  and the  other  Obligations  shall  have  been  paid in  full,  the
Commitments  have been terminated and no Letters of Credit shall be outstanding,
the  Collateral  shall be  released  from the  Liens  created  hereby,  and this
Agreement and all obligations (other than those expressly stated to survive such
termination) of Lender and each Grantor  hereunder shall terminate,  all without
delivery  of any  instrument  or  performance  of any act by any party,  and all
rights to the Collateral  shall revert to the Grantors.  At the request and sole
expense of any Grantor following any such  termination,  Lender shall deliver to
such Grantor any Collateral held by Lender hereunder, and execute and deliver to
such Grantor such documents  (including,  without  limitation,  UCC  termination
statements)  as  such  Grantor  shall   reasonably   request  to  evidence  such
termination.

                                       23
<PAGE>

              (b)    If any of the  Collateral  shall  be sold,  transferred  or
otherwise disposed of by any Grantor in a transaction  permitted by the Security
Agreement,  then the Lender,  at the request and sole  expense of such  Grantor,
shall  execute and  deliver to such  Grantor  all  releases  or other  documents
reasonably necessary or desirable for the release of the Liens created hereby on
such  Collateral,  including,  without  limitation,  amendments to UCC financing
statements.  At the request and sole expense of the Borrower,  a Guarantor shall
be released  from its  obligations  hereunder  in the event that all the Capital
Stock of such Guarantor shall be sold, transferred or otherwise disposed of in a
transaction  permitted by the  Security  Agreement;  PROVIDED  that the Borrower
shall have  delivered to Lender at least ten Business  Days prior to the date of
the proposed  release,  a written  request for release  identifying the relevant
Guarantor and the terms of the sale or other  disposition in reasonable  detail,
including the price thereof and any expenses in connection  therewith,  together
with a  certification  by the  Borrower  stating  that  such  transaction  is in
compliance with the Security Agreement and the other Loan Documents.

                    BALANCE OF PAGE INTENTIONALLY LEFT BLANK
                           - SIGNATURE PAGE FOLLOWS -

                                       24
<PAGE>

       IN WITNESS WHEREOF, each of the undersigned has caused this Guarantee and
Collateral  Agreement  to be duly  executed  and  delivered as of the date first
above written.

                                     GRUBB & ELLIS COMPANY, a Delaware
                                     corporation

                                     By:
                                        ----------------------------------------
                                     Title:
                                           -------------------------------------

                                     GRUBB & ELLIS NEW YORK, a New York
                                     corporation

                                     By:
                                        ----------------------------------------
                                     Title:
                                           -------------------------------------

                                     GRUBB & ELLIS OF MICHIGAN, a Michigan
                                     corporation

                                     By:
                                        ----------------------------------------
                                     Title:
                                           -------------------------------------

                                     GRUBB & ELLIS OF OREGON, INC., a Washington
                                     corporation

                                     By:
                                        ----------------------------------------
                                     Title:
                                           -------------------------------------

                                     GRUBB & ELLIS AFFILIATES, INC., a Delaware
                                     corporation

                                     By:
                                        ----------------------------------------
                                     Title:
                                           -------------------------------------

                                       25
<PAGE>

         IN WITNESS  WHEREOF,  each of the undersigned has caused this Guarantee
and Collateral  Agreement to be duly executed and delivered as of the date first
above written.

                                     GRUBB & ELLIS EUROPE, INC., a California
                                     corporation

                                     By:
                                        ----------------------------------------
                                     Title:
                                           -------------------------------------

                                     GRUBB & ELLIS MORTGAGE GROUP, INC., a
                                     California corporation

                                     By:
                                        ----------------------------------------
                                     Title:
                                           -------------------------------------

                                     GRUBB & ELLIS MANAGEMENT SERVICES, INC.,
                                     a Delaware corporation

                                     By:
                                        ----------------------------------------
                                     Title:
                                           -------------------------------------

                                     GRUBB & ELLIS CONSULTING SERVICES
                                     COMPANY, a Florida corporation

                                     By:
                                        ----------------------------------------
                                     Title:
                                           -------------------------------------

                                     LANDAUER HOSPITALITY INTERNATIONAL,
                                     INC., a Delaware corporation

                                     By:
                                        ----------------------------------------
                                     Title:
                                           -------------------------------------

                                     GRUBB & ELLIS MANAGEMENT SERVICES
                                     OF MICHIGAN, INC., a Michigan corporation

                                     By:
                                        ----------------------------------------
                                     Title:
                                           -------------------------------------

                                       26
<PAGE>

       IN WITNESS WHEREOF, each of the undersigned has caused this Guarantee and
Collateral  Agreement  to be duly  executed  and  delivered as of the date first
above written.

                                     HSM, INC., a Texas corporation

                                     By:
                                        ----------------------------------------
                                     Title:
                                           -------------------------------------

                                       27
<PAGE>

                       GUARANTEE AND COLLATERAL AGREEMENT

                                   SCHEDULE 1

                         NOTICE ADDRESSES OF GUARANTORS

[NAME OF GUARANTOR(S)]

c/o Grubb & Ellis Company
2215 Sanders Road, Suite 400
Northbrook, IL 60062
Attn: General Counsel
Telephone: (847) 753-9010
Telecopy:  (847) 753-9067

                                       28
<PAGE>

                       GUARANTEE AND COLLATERAL AGREEMENT

                                   SCHEDULE 2

                        DESCRIPTION OF PLEDGED SECURITIES

SECURITIES PLEDGED BY GRUBB & ELLIS COMPANY

<TABLE>
<CAPTION>
                                                 JURISDICTION OF     AUTHORIZED       OUTSTANDING      SHARES HELD
                                                 INCORPORATION          SHARES          SHARES*        BY PLEDGOR*
                                                 ---------------     ----------       -----------      -----------
<S>                                                <C>                  <C>             <C>               <C>
Grubb & Ellis Affiliates, Inc.                     Delaware             3,000               500              500
Grubb & Ellis Europe, Inc.                         California           1,000               100              100
Grubb & Ellis Management Services, Inc.            Delaware           195,000            95,000           95,000
Grubb & Ellis Mortgage Group, Inc.                 California           1,000                10               10
Grubb & Ellis New York, Inc.                       New York             1,000                10               10
Grubb & Ellis of Oregon, Inc.                      Washington          50,000             1,000            1,000
   (changing its name to "Grubb & Ellis of Arizona, Inc." as of May 12 or 13, 2003)

Grubb & Ellis of Michigan, Inc.                    Michigan             1,000                10               10
Grubb & Ellis Consulting Services Company          Florida              1,000               510              510
HSM Inc.                                           Texas            1,500,000           800,000          800,000
Aequus Property Management Company                 Texas            1,000,000             1,000            1,000
Grubb & Ellis Asset Services Company               Delaware             1,000                10               10
Grubb & Ellis Institutional Properties, Inc.       California          10,000                10               10
Grubb & Ellis Mortgage Services, Inc.              California          50,000             1,060            1,060
Grubb & Ellis of Nevada, Inc.                      Nevada             100,000                10               10
</TABLE>

* Common stock. No shares of capital stock are held in treasury.

The  Administrative  Agent is in physical  possession of all stock  certificates
delivered pursuant to the Credit Agreement.

                                       29
<PAGE>

SECURITIES PLEDGED BY GRUBB & ELLIS COMPANY (cont.)

<TABLE>
<CAPTION>
                                                      JURISDICTION OF     AUTHORIZED       OUTSTANDING      SHARES HELD
                                                      INCORPORATION          SHARES          SHARES*        BY PLEDGOR*
                                                      ---------------     ----------       -----------      -----------
<S>                                                     <C>                  <C>             <C>              <C>
Grubb & Ellis Realty Advisers, Inc.                     California           25,000           6,350            6,350
Grubb & Ellis Southeast Partners, Inc.                  California            1,000              10               10
Leggat McCall/Grubb & Ellis, Inc.                       Massachusetts         1,000             100              100
The Schuck Commercial Brokerage Company                 Colorado             50,000          50,000           50,000
White Commercial Real Estate                            California           10,000           2,500            2,500
Wm. A. White/Grubb & Ellis, Inc.                        New York             10,000           3,552            3,552
Wm. A. White/Tishman East, Inc.                         New York                200             200              200

SECURITIES PLEDGED BY GRUBB & ELLIS MANAGEMENT SERVICES, INC.

<CAPTION>
                                                      JURISDICTION OF     AUTHORIZED       OUTSTANDING      SHARES OWNED
SUBSIDIARY ISSUER                                      INCORPORATION        SHARES           SHARES*        BY PLEDGOR*
-----------------                                     ---------------     ----------       -----------      -----------
<S>                                                     <C>                  <C>             <C>              <C>
Grubb & Ellis Management Services of Michigan, Inc.     Michigan              1,000              10               10
Crane Realty & Management Co.                           California           25,000             475              475
Grubb & Ellis Management Services of  Canada, Inc.      Canada              100,000             100              100**
</TABLE>

*  Common stock.  No shares of capital stock are held in treasury.

** 66 of these shares will be pledged.

The  Administrative  Agent is in physical  possession of all stock  certificates
delivered pursuant to the Credit Agreement.

                                       30
<PAGE>

SECURITIES PLEDGED BY HSM INC.

<TABLE>
<CAPTION>
                                                      JURISDICTION OF     AUTHORIZED       OUTSTANDING      SHARES OWNED
SUBSIDIARY ISSUER                                      INCORPORATION        SHARES           SHARES*        BY PLEDGOR*
-----------------                                     ---------------     ----------       -----------      -----------
<S>                                                      <C>                  <C>             <C>               <C>
                  CORPORATIONS
Henry S. Miller Financial Corporation                    Texas                 10,000          1,000             1,000
HSM Condominium Corporation                              Texas                  1,000          1,000             1,000
HSM Real Estate Securities Corporation                   Texas                100,000         12,500            12,500
Miller Capital Corporation                               Texas                 10,000         10,000            10,000
Miller Real Estate Services Corporation                  Texas                 10,000         10,000            10,000
</TABLE>

* Common stock. No shares of capital stock are held in treasury.

The  Administrative  Agent is in physical  possession of all stock  certificates
delivered pursuant to the Credit Agreement.

                                       31
<PAGE>

                        GUARANTY AND COLLATERAL AGREEMENT

                                   SCHEDULE 3

                            UCC FINANCING STATEMENTS
                            ------------------------

<TABLE>
<CAPTION>
--------------------------------------- -------------------------------------------- ------------------ --------------
DEBTOR                                  JURISDICTION                                 FILE NUMBER        FILE DATE
--------------------------------------- -------------------------------------------- ------------------ --------------
<S>                                     <C>                                          <C>                <C>
Grubb & Ellis Company                   Secretary of State, Arizona
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Company                   Secretary of State, California
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Company                   Secretary of State, Colorado
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Company                   Secretary of State, Connecticut
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Company                   Recorder of Deeds, District of Columbia
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Company                   Secretary of State, Florida
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Company                   Fulton County, Georgia
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Company                   Secretary of State, Illinois
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Company                   Secretary of State, Maine
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Company                   Secretary of State, Maryland
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Company                   Secretary of the Commonwealth,
                                        Massachusetts
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Company                   Town Clerk, Boston, Massachusetts
                                        Town Clerk, Newton, Massachusetts
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Company                   Secretary of State, Minnesota
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Company                   Secretary of State, New Jersey
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Company                   Secretary of State, New York
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Company                   New York County, New York
                                        Suffolk County, New York
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Company                   Secretary of State, Ohio
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Company                   Cuyahoga County, Ohio
                                        Hamilton County, Ohio
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Company                   Secretary of State, Oregon
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Company                   Secretary of Commonwealth, Pennsylvania
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Company                   Allegheny County, Pennsylvania
                                        Philadelphia County, Pennsylvania
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Company                   Secretary of Sate, Texas
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Company                   Secretary of Commonwealth, Virginia
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Company                   Fairfax County, Virginia
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Company                   Secretary of State, Washington
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Management Services, Inc. Secretary of State, Arizona
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Management Services, Inc. Secretary of State, California
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Management Services, Inc. Secretary of State, Colorado
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Management Services, Inc. Secretary of State, Connecticut
--------------------------------------- -------------------------------------------- ------------------ --------------
</TABLE>

                                       32
<PAGE>

<TABLE>
--------------------------------------- -------------------------------------------- ------------------ --------------
<S>                                     <C>                                          <C>                <C>
Grubb & Ellis Management Services, Inc. Secretary of State, Florida
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Management Services, Inc. Fulton County, Georgia
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Management Services, Inc. Secretary of State, Illinois
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Management Services, Inc. Secretary of State, Maryland
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Management Services, Inc. Secretary of the Commonwealth, Massachusetts
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Management Services, Inc. Town Clerk, Boston, Massachusetts
                                        Town Clerk, Newton, Massachusetts
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Management Services, Inc. Secretary of State, Minnesota
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Management Services, Inc. Secretary of State, Missouri
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Management Services, Inc. Saint Louis County, Missouri
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Management Services, Inc. Town Clerk, Saint Louis City, Missouri
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Management Services, Inc. Secretary of State, New Jersey
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Management Services, Inc. Secretary of State, New York
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Management Services, Inc. New York County, New York
                                        Suffolk County, New York
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Management Services, Inc. Secretary of State, Ohio
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Management Services, Inc. Cuyahoga County, Ohio
                                        Hamilton County, Ohio
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Management Services, Inc. Secretary of State, Oregon
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Management Services, Inc. Secretary of the Commonwealth, Pennsylvania
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Management Services, Inc. Allegheny County, Pennsylvania
                                        Philadelphia County, Pennsylvania
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Management Services, Inc. Secretary of State, Texas
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Management Services, Inc. Secretary of the Commonwealth, Virginia
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Management Services, Inc. Fairfax County, Virginia
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Management Services, Inc. Secretary of State, Washington
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Management Services of    Secretary of State, Colorado
Colorado, Inc.
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Management Services of    Secretary of State, Michigan
Michigan, Inc.
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis of Michigan, Inc.         Secretary of State, Michigan
--------------------------------------- -------------------------------------------- ------------------ --------------
</TABLE>

                                       33
<PAGE>

<TABLE>
<S>                                     <C>                                          <C>                <C>
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis New York, Inc.            Secretary of State, New York
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis New York, Inc.            New York County, New York
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis of Oregon, Inc.  (name    Secretary of State, Oregon
changes to "Grubb & Ellis of Arizona,
Inc. as of May 12 or 13, 2003)
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis of Oregon, Inc. (name     Secretary of State, Washington
changes to "Grubb & Ellis of Arizona,
Inc. as of May 12 or 13, 2003)
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis of Oregon, Inc. (name     Secretary of State, Arizona
changes to "Grubb & Ellis of Arizona,
Inc. as of May 12 or 13, 2003)
--------------------------------------- -------------------------------------------- ------------------ --------------
Wm. A. White/Grubb & Ellis, Inc.        Secretary of State, New York
--------------------------------------- -------------------------------------------- ------------------ --------------
Wm. A. White/Grubb & Ellis, Inc.        Suffolk County, New York
--------------------------------------- -------------------------------------------- ------------------ --------------
HSM, Inc.                               Secretary of State, Texas
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Consulting Company        Secretary of State, Florida
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Consulting Company        Secretary of State, Illinois
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Consulting Company        Secretary of State, New York
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Consulting Company        New York County, New York
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Affiliates, Inc.          Secretary of State, California
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Affiliates, Inc.          Secretary of State, Illinois
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Europe, Inc.              Secretary of State, California
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Mortgage Group, Inc.      Secretary of State, Arizona
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Mortgage Group, Inc.      Secretary of State, California
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Mortgage Group, Inc.      Recorder of Deeds, District of Columbia
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Mortgage Group, Inc.      Secretary of State, Illinois
--------------------------------------- -------------------------------------------- ------------------ --------------
Grubb & Ellis Mortgage Group, Inc.      Secretary of State, Texas
--------------------------------------- -------------------------------------------- ------------------ --------------
</TABLE>

                                       34
<PAGE>

                       GUARANTEE AND COLLATERAL AGREEMENT

                                   SCHEDULE 4

 LOCATION OF JURISDICTION OF ORGANIZATION AND CHIEF EXECUTIVE OFFICE OF GRANTORS

A.     LOCATION OF JURISDICTION OF ORGANIZATION:

Set forth in Schedule 2 to this agreement.

B.     LOCATION OF CHIEF EXECUTIVE OFFICE OF GRANTORS:

Set forth in Schedule 5 to this agreement.

                                       35
<PAGE>

                       GUARANTEE AND COLLATERAL AGREEMENT
                                   SCHEDULE 5

                       LOCATION OF INVENTORY AND EQUIPMENT

GRUBB & ELLIS COMPANY

       I.     The  chief  executive   office  of  Grubb  &  Ellis  Company  (the
"Grantor") is located at:

                 2215 Sanders Road
                 4th Floor
                 Northbrook, IL 60062

       2.     The  Grantor's  true,  full and  corporate  name is: Grubb & Ellis
Company.  The  Grantor  uses no trade  names or  fictitious  names,  except  the
following:

                 Grubb & Ellis of Florida
                 Leggat McCall/Grubb & Ellis
                 Grubb & Ellis of Metropolitan Washington, D.C.
                 Wm. A. White & Sons Management
                 Wm. A. White-Redevco Management
                 HSM Properties, Inc.

       3.     All  of  the  Grantor's  personal  property  which  has  not  been
delivered  to the Bank  pursuant  to the terms of this  Agreement  or the Credit
Agreement  is now,  and will be at all future  times,  located at the  Grantor's
chief executive  officer as described in Paragraph 1 above,  except as specified
below:

                 Arizona:                   2390 East Camelback Road
                                            Suite 100
                                            Phoenix, AZ 85016-3448

                                            5255 W. Williams Circle
                                            Suite 2020
                                            Tucson, AZ 85711-7407

                 California:                5152 Avenida Encinas
                                            Carlsbad, CA 92008-4372

                                            13200 Crossroads Parkway North
                                            Suite 325
                                            City of Industry, CA 91746-3420

                                            2300 Boynton Drive
                                            Suite 200
                                            Fairfield, CA 95433

                          Grubb & Ellis Company (cont.)

                                       36
<PAGE>

                                            8700 Auburn-Folsorn Road
                                            Granite Bay, CA 95661

                                            2497 Industrial Parkway West
                                            Hayward, CA 94545-5007

                                            31395 Medallion Drive
                                            Hayward, CA 94544

                                            1000 Wilshire Blvd.
                                            Suite 200
                                            Los Angeles, CA 90017-2459

                                            11111 Santa Monica Blvd.
                                            Suite 1200
                                            Los Angeles, CA 90025-3333

                                            4695 MacArthur Blvd.
                                            Suite 600
                                            Newport Beach, CA 92660-1882

                                            1111 Broadway
                                            Suite 2150
                                            Oakland, CA 94607-4036

                                            7677 Oakport Street
                                            Suite 1100
                                            Oakland, CA 94621

                                            3401 Centrelake Drive
                                            Suite 500
                                            Ontario, CA 91761-1201

                                            500 N. State College Blvd.
                                            Suite 100
                                            Orange, CA 92868-1604

                                            1610 Arden Way, Ste. 195
                                            Sacramento, CA 95815-4041

                                            770 L Street
                                            Suite 700
                                            Sacramento, CA 95814

                                            2830 G Street
                                            Sacramento, CA 95816

                         Grubb & Ellis Company (cont.)

                                       37
<PAGE>

                                            8880 Rio San Diego Drive
                                            Suite 200
                                            San Diego, CA 92108-1634

                                            255 California Street
                                            14th Floor
                                            San Francisco, CA 94111-4904

                                            1732 N. First St.
                                            Ste. 100
                                            San Jose, CA 95112-4508

                                            224 Airport Parkway
                                            Suite 150
                                            San Jose, CA 95110

                                            803 Chapala St.
                                            Santa Barbara, CA 93101-3201

                                            142 E. Carrillo Street
                                            Santa Barbara, CA 93101

                                            2200 Laurelwood Road
                                            Santa Clara, CA 95054

                                            15260 Ventura Blvd.
                                            Suite 1800
                                            Sherman Oaks, CA 94103-5307

                                            6777 Embarcadero Drive
                                            Suite 2
                                            Stockton, CA 95219-3382

                                            27349 Jefferson Avenue
                                            Suite 101
                                            Temecula, CA 92590-5634

                                            14318 California Ave.
                                            Ste. 220
                                            Victorville, CA 92392

                                            69-844 Highway 111
                                            Suite C
                                            Rancho Mirage, CA 92270-2849

                                            19191 South Vermont Avenue
                                            Suite 600
                                            Torrance, CA 90502-1018

                          Grubb & Ellis Company (cont.)

                                       38
<PAGE>

                                            1646 N. California Blvd.
                                            Suite 500
                                            Walnut Creek, CA 94596-4131

                 Colorado:                  1200 l7th St.
                                            Ste. 2000
                                            One Tabor Center
                                            Denver, CO 80202-5841

                 Connecticut:               5 High Ridge Park
                                            Stamford, CT 06905

                                            1055 Summer St.
                                            Stamford, CT 06905-5504

                 District of Columbia       1717 Pennsylvania Ave, NW
                                            Suite 250
                                            Washington, DC 20006-4603

                                            1150 Connecticut Ave., N.W.
                                            Third Floor
                                            Washington, DC 20036-4104

                                            1001 Connecticut Ave., N.W.
                                            Suite 528
                                            Washington, DC 20036

                 Florida:                   2650 North Military Trail
                                            Suite 140
                                            Boca Raton, FL 33431

                                            801 Brickell Ave.
                                            Suite 1060
                                            Brickell Square
                                            Miami, FL 33131

                                            315 E. Robinson St.
                                            Ste. 555
                                            Orlando, FL 32801

                                            2601 South Bayshore Drive
                                            Suite 1700
                                            Miami, FL 33133

                                            6300 NE 1st Avenue
                                            Suite 100
                                            Ft. Lauderdale, FL 33309

                            Grubb & Ellis Company (cont.)

                                       39
<PAGE>

                                            3030 North Rocky Point Drive
                                            Suite 560
                                            Tampa, FL 33607-5803

                 Georgia:                   400 Northridge Road
                                            Suite 1200
                                            Atlanta, GA 30350-3356

                 Illinois:                  225 West Wacker Drive
                                            Suite 2300
                                            Chicago, IL 60606-1229

                                            10275 West Higgins Road
                                            Suite 300
                                            Rosemont, IL 60018-3885

                 Maine:                     One Union Street
                                            Suite 400
                                            Portland, ME 04101-4048

                 Maryland:                  6550 Rock Spring Drive
                                            Bethesda, MD 20817-1132

                 Massachusetts:             One International Place
                                            18th Floor
                                            Boston, MA 02110-2600

                                            Two Newton Executive Park
                                            Suite 300
                                            Newton Lower Falls, MA 02462-1434

                 Minnesota:                 5850 Opus Parkway
                                            Suite 150
                                            Minnetonka, MN 55343-9609

                 New Jersey:                2 Research Way
                                            Princeton Forrestal Center
                                            Princeton, NJ 08540

                                            200 Executive Drive
                                            Suite 200
                                            West Orange, NJ 07052

                                            101 Fieldcrest Avenue
                                            Raritan Plaza III
                                            Edison, NJ 08837-3622

                          Grubb & Ellis Company (cont.)

                                       40
<PAGE>

                                            155 Passaic Avenue
                                            Fairfield, NJ 07004

                 New York:                  55 E 59th  St.
                                            New York, NY 10022-1112

                                            95 Broadhollow Rd.
                                            Melville, NY 11747-3084

                 Ohio:                      1350 Euclid Avenue
                                            Suite 300
                                            Cleveland, OH 44 115-1815

                                            4366 Glendale-Milford Rd.
                                            Cincinnati, OH 45242

                 Oregon:                    1000 SW Broadway
                                            Suite 1000
                                            Portland, OR 97205-3035

                 Pennsylvania:              1600 Market Street
                                            Suite 2600
                                            Philadelphia, PA 19103-7240

                                            600 Six PPG Place
                                            Pittsburgh, PA 15222-5406

                                            455 South Gulph Road
                                            Executive Terrace
                                            King of Prussia, PA 19406-3114

                 Texas:                     14785 Preston Rd.
                                            1000 Signature Place II
                                            Dallas, TX 75240

                                            1507 Continental Plaza
                                            777 Main Street
                                            Fort Worth, TX 76102-5319

                                            1330 Post Oak Blvd.
                                            Suite 1400
                                            Houston, TX 77056-3017

                                            1335 N.E. Loop 410
                                            San Antonio, TX 78209

                          Grubb & Ellis Company (cont.)

                                       41
<PAGE>

                                            40 NE Loop 410
                                            Suite 525
                                            San Antonio, TX 78216-5854

                                            4041 NE Loop 4l0
                                            San Antonio, TX 78209

                 Virginia:                  8230 Leesburg Pike
                                            Suite 750
                                            Vienna, VA 22182-2641

                                            1451 Dolley Madison Blvd.
                                            Suite 300
                                            McLean, VA 22101

                 Washington                 600 University Street
                                            Suite 1800
                                            Seattle, WA 98101-4159

                                       42
<PAGE>

GRUBB & ELLIS MANAGEMENT SERVICES, INC.

       1.     The chief executive office of Grubb & Ellis  Management  Services,
Inc. (the "Grantor") is located at:

                              2215 Sanders Road
                              4th Floor
                              Northbrook, IL 60062

       2.     The  Grantor's  true,  full and  corporate  name is: Grubb & Ellis
Management  Services,  Inc. The Grantor uses no trade names or fictitious  names
except as follows:

              Grubb & Ellis Management Services, Inc. of Delaware
              Commercial Construction Group

       3.     All  of  the  Grantor's  personal  property  which  has  not  been
delivered  to the Bank  pursuant  to the terms of this  Agreement  or the Credit
Agreement  is now,  and will be at all future  times,  located at the  Grantor's
chief  executive  office as described in Paragraph 1 above,  except as specified
below:

              Arizona:                      4041 North Central Avenue
                                            Ste. C-l00
                                            Phoenix, AZ 85012

                                            5255 E. Williams Circle
                                            Suite 2020
                                            Tucson, AZ 8571 1-7407

              California:                   13200 Crossroads Pkwy North
                                            Suite 325
                                            City of Industry, CA 91746

                                            2290 Diamond Blvd.
                                            Suite 202
                                            Concord, CA 94520

                                            16027 Ventura Blvd.
                                            Suite 400
                                            Encino, CA 9 1436-2747

                                            101 Spear St.
                                            Ste. 222
                                            San Francisco, CA 94105

                                            1000 Wiltshire Blvd.
                                            Suite 200
                                            Los Angeles, CA 90017

                                            500 N. State College Blvd.
                                            Ste. 100
                                            Orange, CA 92868-1604

                 Grubb & Ellis Management Services, Inc. (cont.)

                                       43
<PAGE>

                                            2201 Dupont Drive
                                            Suite 750
                                            Irvine, CA 92612

                                            40358 Barrington Dr.
                                            Palm Desert, CA 92211

                                            650 Howe Ave.
                                            Suite 540
                                            Sacramento, A 95825

                                            770L Street
                                            Suite 700
                                            Sacramento, CA 95814

                                            15260 Ventura Blvd.
                                            Suite 1800
                                            Sherman Oaks, CA 91403

                                            19191 5. Vermont Avenue
                                            Suite 600
                                            Torrance, CA 90502

                                            11111 Santa Monica Blvd.
                                            Suite 1200
                                            Los Angeles, CA 90025

              Colorado:                     1200 17th Street
                                            One Talbot Center #2000
                                            Denver, CO 80202-5841

              Connecticut:                  5 High Ridge Park
                                            Stamford, CT 06905

                                            290 Harbor Drive
                                            Stamford, CT 06902-7441

                                            1055 Summer St.
                                            Stamford, CT 06905-5504

              Florida:                      3030 North Rocky Point Drive West
                                            Suite 560
                                            Tampa, FL 33607-5803

              Georgia:                      400 Northridge Road
                                            Suite 1200
                                            Atlanta, GA 30350

                 Grubb & Ellis Management Services, Inc. (cont.)

                                       44
<PAGE>

                                            505 Commerce Park Dr. SE
                                            Ste. A
                                            Marietta, GA 3 0060-2744

              Illinois:                     225 West Wacker Drive
                                            Suite 2300
                                            Chicago, IL 60606-1224

                                            10275 W. Higgins Road
                                            Rosemont, IL 60018

              Maryland:                     6550 Rock Spring Dr.
                                            Ste. 150
                                            Bethesda, MD 20817-1132

                                            6710 Rockledge Dr.
                                            Bethesda, MD 200817-1826

              Massachusetts:                One International Place
                                            18th Floor
                                            Boston, MA 02110-2600

                                            23 Crosby Dr.
                                            Bedford, MA 01730

                                            Two Newton Executive Park
                                            Suite 300
                                            Newton Lower Falls, MA 02162

              Minnesota:                    5850 Opus Parkway
                                            Suite 150
                                            Minnetonka, MN 55343

                                            600 Highway 169
                                            Ste. 1585
                                            St. Louis Park, MN 55426-1206

              Missouri:                     232 N. Kingshingway Blvd.
                                            Chase Park Plaza
                                            St. Louis, MO 63108-1206

              Ohio:                         600 Vine Street
                                            Suite 2700
                                            Cincinnati, OH 45202-2400

                                            1 S Main Street
                                            Ste. 200
                                            Dayton, OH 45402-2016

              Grubb & Ellis Management Services, Inc. (cont.)

                                       45
<PAGE>

                                            25 Merchant St.
                                            Ste. 130
                                            Cincinnati, OH 45246

                                            1350 Euclid Avenue
                                            Ste. 300
                                            Cleveland, OH 44115-1815

              Oregon:                       1000 SW Broadway
                                            Suite 1000
                                            Portland, OR 97205-3 035

              New Jersey:                   200 Executive Drive
                                            West Orange, NJ 07052

                                            155 Passaic Ave.
                                            Fairfield, NJ 07004

                                            2 Research Way
                                            Princeton, NJ 08540

              New York                      28 Kaysal Court
                                            Armond, NY

                                            55 East 59th Street
                                            10th Floor
                                            New,York,NY 10022-1112

                                            144 Barnegat Rd.
                                            Kandr, Ste. 207
                                            Poughkeepsie, NY 12601-5426

              Pennsylvania:                 1600 Market Street
                                            Suite 2600
                                            Philadelphia, PA 19103-7240

                                            600 Six PPG Place
                                            Pittsburgh, PA 15222-5406

              Texas:                        1600 Two Lincoln Centre
                                            5420 LBJ Freeway
                                            Dallas, TX 75240-2654

                                            14785 Preston Rd
                                            1000 Signature Place II
                                            Dallas, TX 75240

                                            1335 NE Loop 4 10
                                            San Antonio, TX 78209

                Grubb & Ellis Management Services, Inc. (cont.)

                                       46
<PAGE>

                                            1601 Bryan St
                                            4th Floor
                                            Dallas, TX 75201

                                            1330 Post Oak Blvd.
                                            Suite 1400
                                            Houston, TX 77056-3031

                                            40 NE Loop 410
                                            Suite 525
                                            San Antonio, TX 78216

              Virginia:                     8000 Towers Crescent Drive
                                            Suite B170
                                            Vienna, VA 22182-2700

                                            8230 Leesburg Pike
                                            Ste. 750
                                            Vienna, VA 22182-2641

                                            32235 Mission Trail Rd.
                                            Suite B1
                                            Lake Elsinore, CA 92530

                                            6380 Wilshire Blvd.
                                            Suite 800
                                            Los Angeles, CA 90048

                                            18757 Burbank Blvd.
                                            Suite 129
                                            Tarzana, CA 91356

                                            5900 Sepulveda Blvd.
                                            Suite 580
                                            Tarzana, CA 91411

                                            1180 South Beverly Drive
                                            Suite 322
                                            Los Angeles, CA 90035

                                            3900 Market Street
                                            Suite 260
                                            Riverside, California 92501

                                       47
<PAGE>

GRUBB & ELLIS AFFILIATES, INC.

       1.     The chief executive office of Grubb & Ellis Affiliates,  Inc. (the
"Grantor") is located at:

                           2215 Sanders Road
                           4th Floor
                           Northbrook, IL 60062

       2.     The  Grantor's  true,  full and  corporate  name is: Grubb & Ellis
Affiliates, Inc. The Grantor uses no trade names or fictitious names.

       3.     All  of  the  Grantor's  personal  property  which  has  not  been
delivered  to the Bank  pursuant  to the terms of this  Agreement  or the Credit
Agreement  is now,  and will be at all future  times,  located at the  Grantor's
chief  executive  office as described in Paragraph I above,  except as specified
below:

                           500 N. State College Blvd.
                           Suite 100
                           Orange, CA 92868-1604

                                       48
<PAGE>

GRUBB & ELLIS EUROPE, INC.

       1.     The chief  executive  office of Grubb & Ellis  Europe,  Inc.  (the
"Grantor") is located at:

                           120 Old Broad Street
                           London EC2N 1 AR
                           England

       2.     The  Grantor's  true,  full and  corporate  name is: Grubb & Ellis
Europe, Inc. The Grantor uses no trade names or fictitious names.

       3.     All  of  the  Grantor's  personal  property  which  has  not  been
delivered  to the Bank  pursuant  to the terms of this  Agreement  or the Credit
Agreement  is now,  and will be at all future  times,  located at the  Grantor's
chief executive office as described in Paragraph I above.

              Belgium:                      25 Bessenveldstraat
                                            Airport Boulevard Office Park
                                            1831 Diegem, Brussels

GRUBS & ELLIS MORTGAGE GROUP, INC.

       1.     The chief executive  office of Grubb & Ellis Mortgage Group,  Inc.
(the "Grantor") is located at:

                           2215 Sanders Road
                           4th Floor
                           Northbrook, IL 60062

Grubb & Ellis Mortgage Group, Inc. (cont.)

       2.     The  Grantor's  true,  full and  corporate  name is: Grubb & Ellis
Mortgage Group, Inc. The Grantor uses no trade names or fictitious names.

       3.     All  of  the  Grantor's  personal  property  which  has  not  been
delivered  to the Bank  pursuant  to the terms of this  Agreement  or the Credit
Agreement  is now,  and will be at all future  times,  located at the  Grantor's
chief  executive  office as described in Paragraph I above,  except as specified
below:

              Arizona:                      2390 East Camelback Road
                                            Suite 100
                                            Phoenix, AZ 85016

                                            5255 W. Williams Circle
                                            Suite 2020
                                            Tucson, AZ 85711

                                       49
<PAGE>

              California:                   4695 Mac Arthur Court
                                            Newport Beach, CA 92660

              District of Columbia:         1090 Vermont Avenue
                                            Suite 900
                                            Washington, DC 20005

              Texas:                        l330 Post Oak
                                            Suite 1400
                                            Houston, TX 77056

GRUBS & ELLIS NEW YORK, INC.

       1.     The chief  executive  office of Grubb & Ellis New York,  Inc. (the
"Grantor") is located at:

                           Delmonico Plaza
                           55 East 59th Street
                           New York, NY 10022

       2.     The Grantor's  true, full and corporate name is: Grubb & Ellis New
York,  Inc.  The Grantor  uses no trade names or  fictitious  names,  except the
following:

                  James Felt Appraisal and Consulting Services
                  Grubb & Ellis Appraisal & Consulting

       3.     All  of  the  Grantor's  personal  property  which  has  not  been
delivered  to the Bank  pursuant  to the terms of this  Agreement  or the Credit
Agreement  is now,  and will be at all future  times,  located at the  Grantor's
chief  executive  office as described in Paragraph I above,  except as specified
below:

              New York:                     95 Broad Hollow Road
                                            Melville, New York 11747

GRUBS & ELLIS OF OREGON. INC.

NOTE:  GRUBB & ELLIS OF OREGON,  INC.  IS  CHANGING IT NAME TO "GRUBB & ELLIS OF
ARIZONA, INC." AS OF MAY 12 OR 13, 2003.

       1.     The chief executive  office of Grubb & Ellis of Oregon.  Inc. (the
"Grantor") is located at:

                           1000 SW Broadway
                           Suite 1000
                           Portland, OR 97205

       2.     The Grantor's  true,  full and corporate name is: Grubb & Ellis of
Oregon, Inc. The Grantor uses no trade names or fictitious names.

                                       50
<PAGE>

       3.     All  of  the  Grantor's  personal  property  which  has  not  been
delivered  to the Bank  pursuant  to the terms of this  Agreement  or the Credit
Agreement  is now,  and will be at all future  times,  located at the  Grantor's
chief executive office as described in Paragraph 1 above.

HSM INC.

       1.     The chief executive  office of HSM Inc. (the "Grantor") is located
at:

                           14785 Preston Rd.
                           1000 Signature Place II
                           Dallas, TX  75240

       2.     The  Grantor's  true,  full and  corporate  name is: HSM Inc.  The
Grantor uses no trade names or fictitious names.

       3.     All  of  the  Grantor's  personal  property  which  has  not  been
delivered  to the Bank  pursuant  to the terms of this  Agreement  or the Credit
Agreement  is now,  and will be at all future  times,  located at the  Grantor's
chief executive office as described in Paragraph 1 above.

GRUBB & ELLIS OF MICHIGAN, INC.

       1.     The chief executive  office of Grubb & Ellis of Michigan,  Inc. is
located at:

                           2000 Town Center
                           Suite 500
                           Southfield, MI 48075

       2.     The Grantor's  true,  full and corporate name is: Grubb & Ellis of
Michigan, Inc. The Grantor uses no trade names or fictitious names except:

                           Grubb & Ellis Company

       3.     All  of  the  Grantor's  personal  property  which  has  not  been
delivered  to the Agent  pursuant to the terms of this  Agreement  or the Credit
Agreement  is now,  and will be at all future  times,  located at the  Grantor's
chief executive office as described in Paragraph (a) above,  except as specified
below:

                           220 E. Huron St.
                           Suite 70
                           Ann Arbor, MI 48104

GRUBS & ELLIS MANAGEMENT SERVICES OF MICHIGAN, INC.

       1.     The chief executive office of Grubb & Ellis Management Services of
Michigan, Inc. is located at:

                                       51
<PAGE>

                           2000 Town Center
                           Suite 500
                           Southfield, MI 48075

       2.     The Grantor's  true,  full and corporate name is: Grubb & Ellis of
Michigan, Inc. The Grantor uses no trade names or fictitious names except:

                           Grubb & Ellis Management Services, Inc.

Grubb & Ellis Management Services of Michigan, Inc. (cont.)

       3.     All  of  the  Grantor's  personal  property  which  has  not  been
delivered  to the Agent  pursuant to the terms of this  Agreement  or the Credit
Agreement  is now,  and will be at all future  times,  located at the  Grantor's
chief executive office as described in Paragraph (a) above.

GRUBB & ELLIS CONSULTING SERVICES COMPANY

       1.     The chief  executive  office of  Landauer  Realty  Group,  Inc. is
located at:

                           2215 Sanders Road, Suite 400
                           Northbrook, IL 60062

       2.     The Grantor's  true,  full and corporate name is:  Landauer Realty
Group, Inc. The Grantor uses no trade names or fictitious names except:

                           Landauer Capital Markets Group
                           Market Flash
                           Wadley Donovan Group, a Grubb & Ellis Company

       3.     All  of  the  Grantor's  personal  property  which  has  not  been
delivered  to the Agent  pursuant to the terms of this  Agreement  or the Credit
Agreement  is now,  and will be at all future  times,  located at the  Grantor's
chief  executive  office as described in Paragraph I above,  except as specified
below:

                           666 Fifth Avenue
                           25th Floor
                           New York, NY 10103

                           60 Canal Street
                           Boston, MA 02114

                           225 West Washington
                           Suite 1500
                           Chicago, IL 60606

                           55 E. 59th Street
                           New York, NY 10022

                                       52
<PAGE>

                       GUARANTEE AND COLLATERAL AGREEMENT

                                   SCHEDULE 6

                              INTELLECTUAL PROPERTY

       A.     TRADEMARKS AND TRADENAMES

<TABLE>
<CAPTION>
------------------------- -------------------- ---------------------------------------- -------------------- ---------------------
                          APPLICATION/
MARK/COUNTRY              REGISTRATION         CLASS/GOODS/SERVICES                     CURRENT STATUS       NEXT ACTION DUE
                          NO.
------------------------- -------------------- ---------------------------------------- -------------------- ---------------------
                                                                         UNITED STATES
------------------------- -------------------- ---------------------------------------- -------------------- ---------------------
<S>                       <C>                  <C>                                      <C>                  <C>
CIRCLE WITH DIAGONAL      Registration No.     Class 35:  Facilities management         Filed on 8/15/96     File Declaration of
DESIGN                    2,185,311            services, namely, management of          based on use since   Use by 9/1/04;
(Black & White)                                security services, management of         June 1994;           Renew registration
                                               environmental control services,          Registered 9/1/98    by 9/1/08
                                               management of provision of food
                                               services, management of mailroom
                                               services, and management of document
                                               reproduction services, all for others;

                                               Class 36:  Real estate brokerage,
                                               mortgage brokerage, insurance
                                               consultation; real estate appraisal;
                                               arranging for investment in real
                                               estate syndications; real estate
                                               portfolio and asset management
                                               services; and property management
                                               services;

                                               Class 37:  Construction management
                                               services, and custodial management
                                               services

------------------------- -------------------- ---------------------------------------- -------------------- ---------------------
</TABLE>

                                       53
<PAGE>

<TABLE>
<CAPTION>
------------------------- ------------------- ---------------------------------------- -------------------- ----------------------
                          APPLICATION/
MARK/COUNTRY              REGISTRATION        CLASS/GOODS/SERVICES                     CURRENT STATUS       NEXT ACTION DUE
                          NO.
------------------------- ------------------- ---------------------------------------- -------------------- ----------------------
<S>                       <C>                  <C>                                      <C>                  <C>
CIRCLE WITH DIAGNONAL     Registration No.    Class 35:  Facilities management         Filed 8/26/96        File Declaration of
DESIGN                    2,185,316           services, namely, management of          based on use since   Use by 9/1/04;
(Colors - Black/Yellow)                       security services, management of         June 1994;           Renew registration
                                              environmental control services,          Registered 9/1/98    by 9/1/08
                                              management of provision of food
                                              services, management of mailroom
                                              services, and management of document
                                              reproduction services, all for others;

                                              Class 36:  Real estate brokerage,
                                              mortgage, brokerage, insurance
                                              consultation; real estate appraisal;
                                              arranging for investment in real
                                              estate syndications; real estate
                                              portfolio and asset management
                                              services; and property management
                                              services;

                                              Class 37:  Construction management
                                              services, and custodial management
                                              services
------------------------- ------------------- ---------------------------------------- -------------------- ----------------------
</TABLE>

                                       54
<PAGE>

<TABLE>
<CAPTION>
------------------------- -------------------- ---------------------------------------- -------------------- ---------------------
                          APPLICATION/
MARK/COUNTRY              REGISTRATION         CLASS/GOODS/SERVICES                     CURRENT STATUS       NEXT ACTION DUE
                          NO.
------------------------- -------------------- ---------------------------------------- -------------------- ---------------------
<S>                       <C>                  <C>                                      <C>                  <C>
GRUBB & ELLIS             Registration No.     Class 35:  Facilities management         Filed 9/6/96 based   File Declaration of
                          2,174,290            services, namely, management of          on use since         use by 7/21/04;
                                               security services, management of         3/22/62;             Renew registration
                                               environmental control services,          Registered 7/21/98   by
                                               management of provision of food                               7/21/08
                                               services, management of mailroom
                                               services, and management of document
                                               reproduction services;

                                               Class 36:  Real estate brokerage,
                                               mortgage brokerage, insurance
                                               consultation, real estate appraisal,
                                               arranging for investment in real
                                               estate syndications, real estate
                                               portfolio and asset management
                                               services, and property management
                                               services;

                                               Class 37:  Construction management
                                               services and custodial management
                                               services.

------------------------- -------------------- ---------------------------------------- -------------------- ---------------------
GRUBB & ELLIS PROPERTY    Registration No.     Class 35:  Facilities management
SOLUTIONS WORLDWIDE       2,237,162            services, namely, management of
                                               security services, management of
                                               environmental control services,
                                               management of provision of food
                                               services, management of mailroom
                                               services, and management of document
                                               reproduction services, all for others;

                                               Class 36:  Real estate brokerage,
                                               mortgage brokerage, insurance
                                               consultation; real estate appraisal;
                                               arranging for investment in real
                                               estate syndications; real estate
                                               portfolio and asset management
                                               services; and property management
                                               services;

                                               Class 37:  Construction management
                                               services, and custodial management
                                               services
------------------------- -------------------- ---------------------------------------- -------------------- ---------------------
</TABLE>

                                       55
<PAGE>

<TABLE>
<CAPTION>
------------------------- -------------------- ---------------------------------------- -------------------- ---------------------
                          APPLICATION/
MARK/COUNTRY              REGISTRATION         CLASS/GOODS/SERVICES                     CURRENT STATUS       NEXT ACTION DUE
                          NO.
------------------------- -------------------- ---------------------------------------- -------------------- ---------------------
<S>                       <C>                  <C>                                      <C>                  <C>
GRUBB & ELLIS (and        Registration No.     Class 38:  Real estate brokerage         Registered 11/6/84;
Design)                   1,304,099            services; mortgages brokerage            Section 8
                                               services; insurance brokerage            Declaration of
                                               services; insurance consulting           Used accepted
                                               services; real estate appraisal and
                                               consulting services; property
                                               management services; facilities
                                               management services; arranging for
                                               investment in real estate
                                               syndications; and investment banking
                                               services
------------------------- -------------------- ---------------------------------------- -------------------- ---------------------
LANDAUER                  Registration No.     Class 36:  Real estate appraisal,        First use            File transfer of
                          1,455,712            leasing and investment management        0/0/1946; filed      ownership of mark
                                               services; consultation services in the   5/22/86;             to Grubb & Ellis
                                               field of real estates.                   registered           Company.
                                                                                        9/1/87.  Assigned
                                                                                        by contract to
                                                                                        Grubb & Ellis
                                                                                        Company but
                                                                                        transfer not yet
                                                                                        registered with
                                                                                        PTO.
------------------------- -------------------- ---------------------------------------- -------------------- ---------------------
                                                                                CANADA
------------------------- -------------------- ---------------------------------------- -------------------- ---------------------
GRUBB & ELLIS IN CIRCLE   Application No.      Real estate brokerage services;          Filed 5/28/97;       Confirm allowance
DESIGN                    846,353              mortgage brokerage services; insurance   Approval Notice      of mark 6/3/03
                                               consulting services; real estate         issued 4/16/99*
                                               appraisal and consulting services;
                                               property management services;
                                               facilities management services;
                                               arranging for investment in real
                                               estate syndications; construction
                                               management services; and real estate
                                               portfolio and asset management services
------------------------- -------------------- ---------------------------------------- -------------------- ---------------------
</TABLE>

       * Tentative approval subject to publication requirements.

                                       56
<PAGE>

<TABLE>
<CAPTION>
------------------------- ------------------ --------------------------------------- --------------------- -----------------------
                                                                     UNITED KINGDOM
------------------------- ------------------ --------------------------------------- --------------------- -----------------------
<S>                       <C>                  <C>                                      <C>                  <C>
LANDAUER                  Registration No.   Real estate appraisal, leasing and      Filed 3/3/92;         File transfer of
                          1492853            investment management services;         Registration (same    ownership of mark to
                                             consultations related to real           date): 3/3/92         Grubb & Ellis Company.
                                             estates; all included in Class 36
------------------------- ------------------ --------------------------------------- --------------------- -----------------------
</TABLE>

                                       57
<PAGE>

       OTHER TRADENAMES AND MARKS

       1.     The  following  marks  were  assigned  to  Grubb &  Ellis  Company
       pursuant to an Assignment of Proprietary Rights dated as of July 30, 1999
       between Landauer Associates, Inc. et al and Grubb & Ellis Company:

       o Landauer Real Estate Counselors

       o R-E-SEARCH

       o www.r-e-search.com

       o internet domain name registration that incorporate or include the above
         three marks, including, but not limited to:

                            o Landauer.com
                            o R-E-SEARCH.com
                            o HORWATHLANDAUER.com
                            o LANDAUERLOANSALES.com
                            o R-E-SOURCE.com
                            o MARKET-FLASH.com

       2.     Tradenames of Grubb & Ellis Company and Subsidiaries which are the
              subject of d/b/a filings,  assumed name filings, or corporate name
              reservation or other filings with state or county authorities:

       Grubb & Ellis Company

       Tradenames:          Grubb & Ellis of Florida, Inc.
                            Leggat McCall/Grubb & Ellis
                            Grubb & Ellis of Metropolitan Washington, D.C.
                            Win. A. White & Sons Management
                            Win. A. White-Redevco Management
                            Win. A. White/Tishman East Inc.
                            HSM Properties, Inc.
                            Grubb & Ellis Commercial Brokerage
                            The Schuck Commercial Brokerage Company

GRUBB & ELLIS OF MICHIGAN. INC.

Tradename:                  Grubb & Ellis Company

GRUBB & ELLIS MANAGEMENT SERVICES OF MICHIGAN, INC.

Tradename                   Grubb & Ellis Management Services, Inc.

                                       58
<PAGE>

GRUBB & ELLIS NEW YORK. INC.

Tradenames                  James Felt Appraisal and Consulting Services
                            Grubb & Ellis Appraisal & Consulting

B.     PATENTS OWNED

The  following  patent  applications  were  assigned  to  Grubb & Ellis  Company
pursuant  to an  Assignment  of  Proprietary  Rights  dated as of July 30,  1999
between Landauer Associates, Inc. et al and Grubb & Ellis Company, but for which
ownership has not yet been transferred at the U.S. Patent and Trademark Office:

---------------------------------------- ----------------- ---------------------
            Pending Patents               Application No.   Date of Application
---------------------------------------- ----------------- ---------------------

Method and System for Converting a
Markup Language file into a User
Productivity Application File             09/267,978        March 12, 1999
---------------------------------------- ----------------- ---------------------

Method and System for
Generating a User Defined
Markup Language Report                    09/267,491        March 12, 1999

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

C.     COPYRIGHT REGISTRATIONS

No copyright registrations are owned by the Loan Parties.

B.     LICENSING AGREEMENTS

The Loan Parties grant licenses to the tradenames  and  servicemarks  of Grubb &
Ellis  from  time to time  under the Grubb & Ellis  Affiliate  program,  to real
estate firms with reciprocal  referral  agreements.  From time to time,  Grubb &
Ellis has granted licenses to use its trade names and servicemarks to person who
have  purchased  a portion  of the  Company's  business.  All  arrangements  are
contractually limited in time and scope.

                                       59
<PAGE>

                                     ANNEX I

                              ASSUMPTION AGREEMENT

       The   undersigned,   ____________________________________,   a   ________
corporation,  hereby  joins  in the  execution  of that  certain  Guarantee  and
Collateral Agreement dated as of October,1999 (the "Guaranty"), by Grubb & Ellis
Company,  certain of its  Subsidiaries  and each other Person that has become or
becomes a Guarantor  and Grantor  thereunder  after the date and pursuant to the
terms thereof to and in favor of Bank of America,  N.A., as Lender. By executing
this Assumption Agreement,  the undersigned hereby agrees that it is a Guarantor
arid a Grantor  thereunder with the same force and effect as if originally named
therein as a Guarantor and Grantor. The undersigned agrees to be bound by all of
the terms and  provisions of the Guaranty and  represents  and warrants that the
representations  and warranties set forth in Section 4 of the Guaranty are, with
respect  to the  undersigned,  true  and  correct  as of the date  hereof.  Each
reference to a Guarantor or a Grantor in the Guaranty shall be deemed to include
the undersigned.

       In  Witness  Whereof,   the  undersigned  has  executed  this  Assumption
Agreement this _____ day of ____________________, _______________.

                                             ___________________________________
                                             a ________ corporation

                                             By: _______________________________
                                             Name:______________________________
                                             Title:_____________________________

                                       60

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