EXHIBIT 10.27
[GRAPHIC OMITED]
XXXXX XXXX
LASALLE
Form of Agreement for SOP
Unit Purchases Through the Stock
Ownership Program (SOP)
LIM FUNDS CO-INVESTMENT PURCHASE AGREEMENT
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(2006)
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NAME OF REGIONAL OR INTERNATIONAL DIRECTOR (PLEASE PRINT)
[To be eligible to sign this Agreement, the Director must have met the stock
ownership guidelines under the Stock Ownership Program (SOP) and must be
eligible to opt-out of SOP with respect to his or her 2005 bonus to be paid in
2006]
%
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PERCENTAGE (%) OF SOP AMOUNT ELECTED TO BE USED TO ACQUIRE CO-INVESTMENT UNITS
%
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REMAINING PERCENTAGE (%) OF SOP ELECTED TO BE PUT INTO RESTRICTED COMMON STOCK
(WITH 25% UPLIFT)
[Please Note: The above two percentages must equal 100%. As many whole Units as
possible will be purchased based on one Unit = US$1,000. Any remainder will be
put into shares of Restricted Common Stock, rounded up to the nearest whole
share]
To be completed by Global Human Resources Based on Above Elections:
US$
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TOTAL US DOLLAR AMOUNT OF INVESTMENT IN SOP UNITS (MINIMUM OF US$10,000)
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NUMBER OF WHOLE UNITS PURCHASED
(Number of Whole Units equals Total Dollar Amount of Investment / US$1,000 per
Unit)
This LIM Funds Co-Investment Purchase Agreement (this Agreement) is dated
as of February 17, 2006 and is made between Xxxxx Xxxx LaSalle Incorporated (the
Company) and the person whose name appears above, in his or her individual
capacity (the Buyer or you).
INTRODUCTION: PURPOSE OF AGREEMENT; PRICE OF UNITS
The Company, through a co-investment vehicle known as LaSalle Investment
Company (LIC), has made investments of the Company's capital into certain of the
real
estate investment funds that have been established by the Company's subsidiary,
LaSalle Investment Management, Inc., for its investor clients (the LIM Funds).
The Company desires to provide its Regional and International Directors
(collectively, the "Directors") with certain opportunities to make personal
investments in the LIM Funds on an approximately proportionate basis with LIC in
order to encourage retention of those key executives who view such an
opportunity as an additional benefit of being employed by the Company.
This Agreement applies to those Directors, one of whom is the Buyer, who
were eligible to opt out of the Company's Stock Ownership Program (SOP) in
respect of their 2005 bonuses payable in 2006 but have chosen to apply all or a
portion of their SOP amount in order to make an investment in the LIM Funds.
Accordingly, investments in the LIM Funds are being offered to the Buyer in
whole units (Units), the price of which is US$1,000 per Unit, with a required
minimum total investment of US$10,000. By this Agreement, the Buyer is
directing the Company to apply up to one hundred percent (100%) of the amount
that would otherwise have been applied to shares of restricted common stock
under the Company's 2006 Stock Ownership Program (but expressly EXCLUDING the
25% uplift that would otherwise have been added to such common stock) in order
to purchase Units. Units purchased under this Agreement are in addition to any
units the Buyer may also be separately acquiring outside the SOP, to the extent
permitted by the Company, under a separate agreement. Units purchased under
this Agreement shall be called SOP Units.
The Company intends to offer on an annual basis the opportunity to acquire
additional units to employees who are Directors at the time of each offering
through the SOP (but reserves the right not to do so in a particular year or to
change the terms of an offering from one year to the next). This Agreement
reflects the offering being made in 2006.
AGREEMENT TO PURCHASE INVESTMENT SECURITY; VESTING OF UNITS
By this Agreement, the Company agrees to sell to the Buyer, who agrees to
purchase from the Company, the total number of Units set forth at the beginning
of this Agreement (the Investment), effective as of the date above.
Upon (1) receipt by the Company from the Buyer of the total amount of funds
set forth at the beginning of this Agreement, (2) the execution of this
Agreement and its delivery by the Buyer to the Company and (3) the
countersignature by the Company of this Agreement, a copy of which shall be
returned to the Buyer, this Agreement shall constitute the certification of the
Investment and may be used by the Buyer and the Company as the sole evidence
thereof for all purposes.
For all purposes, the Investment shall be considered a liability of the
Company owed to the Buyer, who shall accordingly be deemed to be an unsecured
general creditor of the Company with respect to the Investment. The Buyer
understands that he or she
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will not be a direct investor in the LIM Funds themselves and therefore that in
the event of the bankruptcy of the Company, the Buyer could lose the entire
value of this investment even if the LIM Funds themselves remained solvent.
Consistent with the terms of the SOP, one half of the SOP Units acquired
under this Agreement shall vest on July 1, 2007 and the other half of the SOP
Units acquired under this Agreement shall vest on July 1, 2008. The terms and
conditions regarding the vesting and forfeiture of the SOP Units shall be
governed by the SOP and shall be identical to the terms and conditions
applicable to shares of restricted stock acquired under the SOP (including in
connection with a change of control), the terms of which are incorporated herein
by this reference. Once the Units have vested, they will remain the Buyer's if
he or she leaves the Company, regardless of the circumstances. The Buyer does
not have any rights to sell his or her Individual Units back to the Company in
the event the Buyer leaves the Company for any reason, nor can the Company
require the Buyer to sell them back.
IN ORDER TO MAKE AN INVESTMENT IN UNITS, PLEASE RETURN THIS AGREEMENT,
FULLY COMPLETED AND EXECUTED BY YOU, TO XXXXX XXXX LASALLE GLOBAL HUMAN
RESOURCES, AON CENTER, 000 XXXX XXXXXXXX XXXXXX, XXXXXXX, XXXXXXXX 00000 XXX, BY
NO LATER THAN FEBRUARY 17, 2006. The Company will deduct from your annual bonus
amount any funds you are investing in SOP Units.
INVESTMENT RETURN TO THE BUYER; INVESTMENT AND DISTRIBUTION OF CASH
The Buyer and the Company agree that the investment return on the
Investment to the Buyer, including without limitation with respect to the amount
and timing of all cash distributions thereon, shall be determined by reference
to the collective investments that LIC has made in the LIM Funds during
calendar-year 2005. A complete list of those LIM Funds represented by the Units
is set forth on Appendix A, indicating the percentage of each Unit that is
represented by each separate LIM Fund. All payments to the Buyer in respect of
the return on the Buyer's Investment shall approximate the internal rate of
return that LIC receives from the LIM Funds.
In its discretion and for ease of administration, the Company may
accumulate cash distributions from the LIM Funds for up to one year prior to
their collective disbursement at one time to you and all of the other Directors
who have purchased Units. Any cash distributions received from the LIM Funds
prior to the vesting of SOP Units will be retained by the Company until the SOP
Units have vested, after which all such undistributed funds shall be paid over
to you when the Company next makes a distribution.
The Buyer understands that the decision about which LIM Funds to invest in,
and how much to invest, has been made on behalf of LIC by the Xxxxx Xxxx LaSalle
Co-Investment Capital Allocation Committee in its sole discretion.
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Moreover, the Buyer further understands that the accounting treatment
accorded to each of the LIM Funds, and the amount and timing of distributions
from any of the LIM Funds, is within the discretion of the applicable LIM Fund
and that the Buyer shall not be consulted or otherwise have any rights to
participate in the determination of any such matters. The timing of
distributions cannot be accurately predicted as of the date of this Agreement.
The Buyer understands that all transactions with respect to the Investment
shall be made in United States Dollars and that the Buyer shall be responsible
for any diminution in the value of his or her Investment as the result of
foreign currency exchange.
INFORMATION TO BE PROVIDED TO THE BUYER
The Company has provided to the Buyer information with respect to the LIM
Funds. While the Buyer continues to hold Units, the Company shall from time to
time provide to the Buyer such reports with respect to the performance and other
aspects of the LIM Funds as the Company may in its discretion deem appropriate.
The Buyer understands that it shall have no rights to receive any additional
information with respect to the LIM Funds beyond what is contemplated in the
prior sentence.
REPRESENTATIONS OF THE BUYER
As a condition to acquiring the Investment, and with the understanding that
the Company is willing to offer the Investment to the Buyer only on the
condition that the Buyer makes certain representations and agreements, the
undersigned Buyer hereby represents to the Company as follows:
1. REGARDLESS OF MY COUNTRY OF CITIZENSHIP OR RESIDENCE, I meet the
definition of an "accredited investor" for purposes of the United States
Securities Act of 1933 (the Securities Act), which means that either (a) my
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individual net worth, or joint net worth with my spouse, exceeds US$1,000,000 as
of the date of this Agreement or (b) I had individual income in excess of
--
US$200,000 in each of the two most recent years or joint income with my spouse
in excess of US$300,000 in each of those years and, in either case, have a
reasonable expectation of reaching the same income level in the current year. I
make this representation regardless of my country of residence or citizenship.
US Dollar amounts are based on the approximate exchange rates to applicable
currencies at the time of this Agreement.
2. (a) ONLY IF I AM A CITIZEN OR RESIDENT OF THE UNITED KINGDOM, I
represent that that I meet the definition of a "high net worth individual" for
purposes of Article 48 of the Financial Services and Markets Xxx 0000 (Financial
Promotion) Order 2005, which means that either (a) my individual net income for
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the 2005 calendar year was 100,000 or more or (b) I held throughout the whole
--
of the 2005 calendar year net assets of 250,000 or more. Net assets for these
purposes do not include (i) property which is my primary residence or any loan
secured on it, (ii) any rights I may have under a qualifying contract of
insurance with the meaning of the Financial Services and
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Markets Xxx 0000 (Regulated Activities) Order 2001 or (iii) any benefits (in the
form of pensions or otherwise) which are payable on the termination of my
service or on my death or retirement and to which I (or my dependents) are or
may be entitled. I understand that the content of this offer has not been
approved by an authorised person within the meaning of the Financial Services
and Markets Xxx 0000 and that reliance on this offer may expose me to a
significant risk of losing all of the funds invested. I further understand that
this offer is exempt from the general restriction in Section 21 of the FSMA on
the communication of invitations or inducements to engage in investment activity
on the ground that it has been limited to certified high net worth individuals
in the United Kingdom and that, if I have any doubt about the investment to
which this offer relates, I should consult an authorised person specializing in
advising on investments of this kind.
(b) ONLY IF I AM A CITIZEN OR RESIDENT OF AUSTRALIA, I am not a
"retail investor," which means that I have net assets of at least A$2,500,000 or
--
gross income for each of the last two financial years of at least A$250,000. I
understand that this document has not been and will not be lodged with the
Australian Securities and Investments Commission. The offer is only made to
those persons to whom disclosure is not required under Division 2 of Part 6D2 or
Part 7.9 of the Corporations Xxx 0000 and does not purport to be an offer of
interests for which disclosure is required. In addition, the Fund is not a
registered scheme as defined in the Corporations Xxx 0000.
(c) IF I AM A RESIDENT OF A COUNTRY OTHER THAN THE UNITED STATES, THE
UNITED KINGDOM OR AUSTRALIA, I acknowledge that I may be asked to make certain
additional representations in order to be permitted to purchase the Units.
3. I understand that this offer of Units is intended to be exempt from
the prospectus and registration requirements in each jurisdiction in which the
Company's Directors reside. I FURTHER UNDERSTAND THAT THIS AGREEMENT AND THE
OFFERING OF UNITS HAVE NOT BEEN, AND WILL NOT BE, FILED WITH OR APPROVED BY THE
UNITED STATES SECURITIES AND EXCHANGE COMMISSION NOR ANY SECURITIES COMMISSION
OR SIMILAR REGULATORY AGENCY OF ANY STATE OR JURISDICTION IN ANY COUNTRY. ANY
REPRESENTATION TO THE CONTRARY MAY BE A CRIMINAL OFFENSE.
4. Given my position within the Company as a Director and my experience
at the Company, with other employers and/or as a personal investor, I am a
sophisticated investor with respect to securities generally and with respect to
real estate and that, by reason of my business or financial experience, I am
capable of evaluating the merits and risks of making the Investment and of
protecting my own interest in connection with the purchase of the Investment. I
have such information as I have deemed necessary concerning the Investment, and
the business and financial condition of the Company, in order to make an
informed decision regarding the Investment. I understand that the Company files
various disclosure documents about its business and financial condition as
required by the United States Securities and Exchange Commission (the SEC), all
of which are available for my review at the website of the SEC at xxx.xxx.xxx or
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on the Company's website at xxx.xxxxxxxxxxxxxxxx.xxx. In particular, the risk
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factors
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associated with the Company's business and with its co-investment activities in
particular may be found within the Company's annual reports on Form 10-K.
5. The Company has not given me any investment advice or rendered any
opinion as to whether the Investment is prudent or suitable, and I acknowledge
that I have independently and without reliance upon the Company, and based upon
such information as I have deemed appropriate, made my own decision to purchase
the Investment. I understand that making the Investment is not a condition to
my continued employment with the Company and will have no effect on my
employment status with the Company, nor does it create any rights to employment
or constitute any type of employment contract.
6. I, for myself and on behalf of my successors and/or assigns, hereby
irrevocably forever release, discharge and waive any and all claims, rights,
causes of action, suits, obligations, debts, demands, liabilities,
controversies, costs, expenses, fees or damages of any kind (including, but not
limited to, rights to rescind my purchase and any and all claims alleging
violations of securities laws of any jurisdiction, common-law fraud or deceit,
breach of fiduciary duty, negligence or otherwise), whether directly,
derivatively, representatively or in any other capacity, against the Company or
any of its assets, advisors, subsidiaries or affiliates, including any and all
of its present and/or past directors, officers, employees, fiduciaries, agents
or attorneys, and their respective successors and assigns, that are based upon,
arise from or in any way relate to or involve, directly or indirectly, the
existence or substance of this Agreement or any other information provided to me
in connection with the Investment, except only in the case of the Company's
willful misconduct.
7. I represent and agree that I am acquiring the Investment for my own
account and for investment purposes only and not with a view to, or for resale
in connection with, any distribution thereof in violation of the Securities Act
or of any other securities law or regulation that may apply to me in any
jurisdiction. I understand that the Units will not be registered under the
Securities Act or qualified or registered under the securities laws of any
jurisdiction. I understand that the reliance by the Company on exemptions from
such registration and qualification is based, in part, on the Buyer's
representations and other agreements set forth in this Agreement.
8. I understand that the laws of some jurisdictions may prohibit or
restrict the ability to use funds set aside in certain types of retirement plans
in making investments similar to the Investment. I represent that I have
obtained independent advice that such laws do not prohibit or restrict my
ability to make the Investment or to perform and comply with the terms of this
Agreement.
9. I agree that I may not transfer the Units constituting the
Investment to any person or entity except by will or the laws of descent and
distribution after my death, nor may I pledge the Units as collateral or
otherwise create any liens or encumbrances upon the Units. I understand that
this means the Units are not a liquid investment and that I
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may not be able to use them to satisfy any personal short-term cash obligations
that I may have.
10. I understand and agree that the Company has no fiduciary
obligations to me in connection with the Investment, which is solely a matter of
contract pursuant to this Agreement.
MISCELLANEOUS
1. The Buyer is responsible for the payment of all taxes (whether for
income or otherwise) that may be imposed by his or her country of residence (or
other applicable jurisdiction) and the Buyer acknowledges that the Company is
giving the Buyer no advice in this regard. The Buyer will, to the extent he or
she deems it necessary or advisable, consult with his or her personal tax
advisor with respect to the tax consequences of the Investment. The Buyer
releases the Company from any obligations to withhold or pay any taxes on the
Buyer's behalf with respect to the Investment and shall indemnify the Company
from any costs (whether due to the payment of taxes or otherwise) that the
Company may incur as the result of a claim for taxes made by any taxing
jurisdiction with respect to the Buyer's Investment. The Company does retain
the right, however, in its discretion to withhold and pay such taxes on the
Buyer's behalf as the Company may deem necessary in order to comply with any
applicable laws.
2. If the Company, based of its receipt of a legal opinion to that
effect by a reputable law firm licensed to practice in the applicable
jurisdiction, determines that the Investment by the Buyer under the terms of
this Agreement would constitute the violation of the laws of any applicable
jurisdiction by either the Buyer or the Company, then the Company may in writing
declare this Agreement null and void, and of no legal force or effect, in which
case the entire amount of the Investment shall be promptly returned to the Buyer
by the Company without interest.
3. In the event that all of the investments made by the Directors in
respect of purchasing Units (whether under the 2006 SOP or otherwise) do not
equal at least US$1,000,000, then the Company shall have the right to terminate
this Agreement and promptly thereafter to return all of the funds previously
delivered, without interest. In the event that all of the investments made by
the Directors in respect of purchasing Units exceed US$5,000,000, then the
Company reserves the right to proportionately reduce the amount of all
investments by all Directors so that the total amount of the investments is
reduced to US$5,000,000.
4. The Buyer and the Company each agrees that this Agreement shall be
binding upon and inure to the benefit of each of their respective successors and
assigns.
5. This Agreement may be executed separately in counterparts. A
facsimile signature by either party to this Agreement shall be deemed to be an
original for all purposes.
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6. In the event the Buyer leaves the employment of the Company, the
Buyer agrees to provide the Company with notification of any address change so
that the Company will remain able to forward future cash distributions to the
Buyer in respect of his or her Units.
IN WITNESS WHEREOF, each of Xxxxx Xxxx LaSalle Incorporated, as the
Company, and the Buyer, have executed this Agreement as of the date first
written above.
XXXXX LANG LASALLE INCORPORATED
By:
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Printed Name:
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Its:
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Signature of the Buyer
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APPENDIX A
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LIM FUND INVESTMENT CLASSIFICATION PERCENTAGE OF TOTAL *
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French Fund II Opportunistic 17.0%
Income and Growth IV Value-add 13.4%
German Retail Fund Value-add 12.8%
LaSalle Euro Growth II Value-add 10.8%
Canadian Income and Growth I Value-add 9.0%
Japan Logistics Fund Opportunistic 8.0%
LaSalle Income & Growth III Value-add 7.4%
LaSalle London Office Value-add 6.6%
LaSalle Asia Recovery Fund I Opportunistic 6.0%
CIJ Juarez Mexico Value-add 5.6%
LaSalle Asia Opportunity Fund II Opportunistic 3.4%
TOTAL 100%
*Allocations are estimates at this time. Actual allocations will not be
available until 2005 financial statements are available for each fund.
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