MACK CALI REALTY CORP
EX-10
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<DESCRIPTION>EX-10
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<p align="right" style="font-weight:bold;margin:0pt 0pt 12.0pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit 10.18</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">MACK-CALI
REALTY CORPORATION</font></b></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">TAX
GROSS-UP AGREEMENT</font></b></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">AGREEMENT</font></b>
(&#147;Agreement&#148;) effective as of December 5, 2006 by and between Mack-Cali Realty
Corporation (the &#147;Company&#148;) and Mark Yeager (&#147;Employee&#148;).</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS</font></b>,
pursuant to the 2000 Employee Stock Option Plan of Mack-Cali Realty Corporation
(the &#147;Plan&#148;), the Company, on December 5, 2006, awarded four thousand nine
hundred fifty (4,950) shares (&#147;Restricted Shares&#148;) of the Company&#146;s common
stock, par value $.01 per share (&#147;Company&#146;s Common Stock&#148;) to the Employee
subject to the terms, conditions, and restrictions set forth in the Plan and
the Restricted Share Award Agreement between the Employee and the Company dated
December 5, 2006 (hereinafter, &#147;Restricted Share Award Agreement&#148;); and</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">WHEREAS</font></b>,
the Company wishes to provide the Employee with a tax gross-up payment upon the
date of grant applicable to such Restricted Shares;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">NOW
THEREFORE</font></b>, the parties hereto agree as follows:</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Employee shall be entitled to
receive a tax gross-up payment (the &#147;Tax Gross-Up Payment&#148;) from the Company
with respect to the Restricted Shares granted pursuant to the Restricted Share
Award Agreement.&#160; Each Tax Gross-Up
Payment shall be a dollar amount equal to forty-three percent (43%) of the fair
market value of the Restricted Shares as of the date hereof, exclusive of
dividends.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Tax Gross-Up Payment shall be
made as soon as practicable following the date of grant but in no event later
than December 31, 2006.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The Company shall have the right to
deduct and withhold from the Tax Gross-Up Payment all social security and other
federal, state and local taxes and charges which currently are or which
hereafter may be required by law to be so deducted and withheld.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Nothing in this Agreement shall
confer on the Employee any right to continue as an employee of the Company or
in any way affect the Company&#146;s or any subsidiary&#146;s right to terminate the
Employee&#146;s employment at any time subject to the terms of the Employee&#146;s
employment agreement.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; This Agreement contains the entire
understanding of the parties with respect to the payment of the Tax Gross-Up
Payment and this Agreement shall not be modified or amended except in writing
and duly signed by each of the parties.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; This Agreement is not intended to
provide for an elective deferral of compensation that would be subject to
Section 409A of the Internal Revenue Code of 1986, as amended.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; This Agreement shall be governed by
the laws of the State of New Jersey applicable to contracts made, and to be
enforced, within the State of New Jersey.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; This Agreement shall be binding
upon and inure to the benefit of the successors, assigns and heirs of the
respective parties.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">IN
WITNESS WHEREOF</font></b>, the parties hereto have executed this
Agreement to be effective on the date first above written.</p>

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  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Mack-Cali Realty Corporation</font></b></p>
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  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
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  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">By:</font></b></p>
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  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">/s/ </font></b><b><font face="Times New Roman" style="font-weight:bold;">Mitchell E. Hersh</font></b></p>
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  <td width="48%" valign="top" style="border:none;padding:0pt .7pt 0pt .7pt;width:48.48%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Mitchell E. Hersh</font></b></p>
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  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">President and</font></b></p>
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  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Chief Executive Officer</font></b></p>
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  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Employee</font></b></p>
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  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">/s/ </font></b><b><font face="Times New Roman" style="font-weight:bold;">Mark Yeager</font></b></p>
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  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Mark Yeager</font></b></p>
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<p style="margin:0pt 0pt 12.0pt;text-indent:252.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">2</font></p>
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