Document:

exv10w1

 

EXHIBIT 10.1

WAUWATOSA SAVINGS BANK

11200 West Plank Court

Wauwatosa, WI 53226

October 25, 2005

Personal and Confidential

Douglas S. Gordon

18270 San Lucas Ct.

Brookfield, WI 53045

Dear Doug:

     We are pleased to present you with this offer of employment with Wauwatosa Savings Bank (the
“Bank”). We believe that the skills and experience you possess will be a definite asset to our
organization and we are certain you will be able to make significant impact on the long term
success of the Bank.

     The specifics of the offer and your employment are as follows:

     1. You will be employed by the Bank as an executive employee, pursuant to the terms of this
letter and the Bank’s general employment policies. Initially you will be elected as the President
and Chief Operating Officer of the Bank (“COO”), however, and without respect to your employment,
your continuation in that position is subject to the Articles and bylaws of the Bank and your
annual reelection and appointment to that position by the Board of Directors of the Bank. Subject
to the ability of the Board of Directors of the Bank and the other entities to amend bylaws and
create an additional board position, you will also be elected to the Board of the Bank and its
holding companies, Lamplighter Financial, MHC (the “MHC”) and Wauwatosa Holdings, Inc. (“WH”).
Your continuation as a director is also subject to the Articles and bylaws of the various entities
and to your reelection by shareholders or members, as the case may be. Your employment duties and
responsibilities will be as described in detail in a job description which will be prepared and
provided to you on or before November 16, 2005, but will be consistent with those duties typically
performed by a President and COO of a bank. You shall devote your full time and attention to the
performance of your duties on behalf of the Bank.

     2. Initially, and subject to the provisions of paragraph 6, you will be employed for a term
commencing November 16, 2005 (or such other date as you actually commence working, provided it is
prior to November 30, 2005) and continuing to and through December 31, 2007. Thereafter, your
employment may be extended for a further defined term subject to your agreement and affirmative action taken by the Board not less than
sixty (60) days prior to December 31, 2007.

 

 

Doug Gordon

10/25/05

Page 2

     3. Your initial annual base salary will be $250,000, subject to applicable withholding,
payable periodically according to the normal practices of the Bank. For calendar year 2006 you
will also be eligible for a bonus of no less than $150,000 payable no later than January 15, 2007.
For the year 2007 you will also be eligible for a bonus of no less than $200,000 payable no later
than January 15, 2008. Bonuses will be payable, provided, in the view of the Board, determined
after the conclusion of the applicable year, that you have materially assisted during that year in
moving the Bank in the strategic direction defined by the Board. The bonus for 2007 may, in the
discretion of the Board of WH, consist, at least in part, of stock options and/or restricted stock
grants of WH stock. The stock component of any bonus is subject to the adoption of stock benefit
programs by the Board and the shareholders of WH (not including the vote of shares held by the
MHC).

     4. You will also be provided with a Bank owned or leased automobile for your use during your
term of employment by the Bank, in accordance with the Bank’s automobile policy. The Bank will
also provide you with initiation fees, grossed up to a pretax amount, that will approximately
provide you with the after tax dollars sufficient to pay the initiation fees in a golf club, in an
amount and at a club approved by the Compensation Committee of WH. You will also be reimbursed for
the annual dues of the club and for special assessments. The Bank will reimburse you for business
use of the club in accordance with its policies for business expense reimbursement in effect from
time to time. Minimum charges and personal use of the club shall be your responsibility.

     Should you terminate your employment or cease to be employed by the Bank for any reason prior
to December 31, 2007 you will be required to repay a portion of initiation fees, annual dues and
special assessments paid by the Bank relative to your club membership. Specifically, you would
repay any dues and special assessments paid in the year your employment ceased and all of the
initiation fees if your employment ceased in 2006 and one-half the fees if termination occurred in
2007.

     5. You will also be entitled, in accordance with the Bank’s policies in effect from time to
time, to participate in the Bank’s employee benefit programs as are offered to other employees
and/or executive officers of the Bank. If you want a copy of the Bank’s Associate Handbook which
describes the benefits currently available, please let me know.

     6. Your employment and the payment of any compensation or the provision of any benefits to you
shall cease upon your resignation or upon termination of your employment by the Bank for cause (as
such term is defined below).

     Termination for cause shall mean termination because of your Personal dishonesty (as
hereinafter defined), Incompetence (as hereinafter defined), Willful

 

 

Doug Gordon

10/25/05

Page 3

Misconduct (as hereinafter defined), breach of fiduciary duty involving personal profit,
intentional failure to perform your stated duties, willful violation of any law rule or regulation
(other than traffic violations or similar offenses) or of any cease and desist order, or material
breach of any provision of this agreement; provided, however, in the event Bank determines that you
have intentionally failed to perform your stated duties or materially breached this Agreement, the
Bank may not terminate you for cause unless the Bank has notified you of such failure or breach,
you have been given a reasonable period of time to cure such failure or breach, and in the opinion
of the Bank, you have not cured such failure or breach. For the purpose of this Agreement: (i)
“Incompetence” means you demonstrated lack of ability to perform the duties assigned to you which
lack of ability directly causes (or the Board of Directors determines is reasonably likely to
cause) material injury to the bank; (ii) “Personal Dishonesty” means conduct on your part which
evinces a want of integrity or an intentional breach of trust and which directly causes (or the
Board of Directors determines is reasonably likely to cause) material injury to the Bank; and (iii)
“Willful Misconduct” means conduct on your part which evinces a deliberate disregard of the
interest of the Bank and which causes (or the Board of Directors determines is reasonably likely to
cause) direct material injury to the Bank.

     All of us on the Board of the Bank look forward to working with you and sincerely hope you
accept this offer. If you wish to accept employment with the Bank on the terms outlined, please
sign below and return a copy of this letter to me, along with a signed copy of the enclosed
Consumer Report Disclosure and Authorization Form, in the envelope provided. This offer is
contingent upon the completion of a background investigation of you and our receipt of a report
from your meeting with Dr. John E. Dehlinger of Vernon, Roche & Hodgeson, both in a form and
containing information satisfactory to us.

     This offer will expire if not accepted by you on or before 5:00 PM November 30, 2005.

	 	 	 	 	 
	 	Sincerely,

WAUWATOSA SAVINGS BANK

 	 
	 	/s/ Donald J. Stephens
 	 
	 	 	 
	 	Donald J. Stephens

President and Chief Executive Officer 	 
	 

Accepted and Agreed to:

This 25th day of October, 2005

	 
	/s/ Doug Gordon

	 

	Doug Gordon<PAGE>
                                                                     Exhibit 4.1

                          AMENDMENT TO RIGHTS AGREEMENT

         This Amendment (this "Amendment") to the Rights Agreement, dated as of
November 2, 1998 (the "Rights Agreement"), between AMLI Residential Properties
Trust, a Maryland real estate investment trust (the "Company"), and Harris Trust
and Savings Bank, as Rights Agent, is made and entered into as of October 23,
2005.

         WHEREAS, concurrently herewith the Company is entering into that
certain Agreement and Plan of Merger, dated October 23, 2005 (the "Merger
Agreement"), by and among Prime Property Fund, LLC, a Delaware limited liability
company, Atom Acquisition LLC, a Delaware limited liability company, Atom
Acquisition Partners, L.P., a Delaware limited partnership, the Company and AMLI
Residential Properties, L.P., a Delaware limited partnership, pursuant to which
the Company will be merged with and into Purchaser Acquisition Entity;

         WHEREAS, Section 27 of the Rights Agreement provides that, prior to any
Person becoming an Acquiring Person, the Company may supplement or amend the
Rights Agreement without the approval of any holders of the Rights Certificates
to make any provisions with respect to the Rights as the Company may deem
necessary or desirable;

         WHEREAS, as of the time immediately prior to this Amendment, no Person
has become an Acquiring Person for purpose of the Rights Agreement; and

         WHEREAS, the Board of Trustees of the Company has determined, in
connection with the execution of the Merger Agreement, that it is desirable to
amend the Rights Agreement and has directed that the Rights Agreement be amended
as provided herein pursuant to Section 27 of the Rights Agreement.

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

         1. Section 1 of the Rights Agreement shall be supplemented by adding
the following definitions:

         "Merger" shall have the meaning specified in the Merger Agreement.

         "Merger Agreement" shall mean that certain Agreement and Plan of
Merger, dated October 23, 2005, as amended from time to time, by and among Prime
Property Fund, LLC, a Delaware limited liability company ("Purchaser"), Atom
Acquisition LLC, a Delaware limited liability company ("Purchaser Acquisition
Entity"), Atom Acquisition Partners, L.P., a Delaware limited partnership
("Purchaser Acquisition LP" and, together with Purchaser and Purchaser
Acquisition Entity, the "Purchaser Parties"), the Company and AMLI Residential
Properties, L.P., a Delaware limited partnership.

         "Voting Agreement" shall mean that certain Voting Agreement, dated as
of October 23, 2005, as amended from time to time, between the Purchaser and the
shareholders party thereto, entered into in connection with the transactions
contemplated by the Merger Agreement.

<PAGE>

         2. The definition of "Acquiring Person" as set forth in Section 1 of
the Rights Agreement shall be supplemented to include the following provision at
the end of such definition:

         "Notwithstanding the foregoing or anything to the contrary in this
Agreement, none of the Purchaser Parties nor any of their respective Affiliates
or Associates shall be deemed an "Acquiring Person" by reason of (A) the
execution and delivery of the Merger Agreement or any amendment thereto, (B) the
execution and delivery of the Voting Agreement or any amendment thereto, (C) the
transactions and agreements contemplated by the Merger Agreement (including,
without limitation, the Merger) or by the Voting Agreement or (D) the public
announcement of any of the foregoing (each of (A) through (D), a "Merger
Event")."

         3. The definition of "Triggering Event" as set forth in Section 1 of
the Rights Agreement shall be supplemented to include the following provision at
the end of such definition:

         "Notwithstanding the foregoing or anything to the contrary in this
Agreement, no Merger Event shall constitute a Triggering Event."

         4. Section 3(a) of the Rights Agreement shall be supplemented to
include the following provision at the end of such subsection:

         "Notwithstanding the foregoing or anything to the contrary in this
Agreement, no Merger Event shall trigger, and the date or dates thereof shall
not constitute, a Distribution Date under this Agreement or require the issuance
of Right Certificates hereunder."

         5. The Rights Agreement is hereby further amended by adding the
following Section 36, to appear immediately following Section 35 of the Rights
Agreement:

         "Section 36. SPECIFIED EXCEPTION; TERMINATION. Notwithstanding anything
to the contrary in this Agreement, (i) no Person shall become an Acquiring
Person or shall be deemed to have become an Acquiring Person, (ii) no
Distribution Date, Stock Acquisition Date or Triggering Event shall occur or be
deemed to have occurred and (iii) no other event or occurrence resulting in a
triggering of rights of holders of Rights, or of obligations of the Company
(including, without limitation, any obligation to issue Rights Certificates or
to provide notice to holders of Rights), under the Rights Agreement shall occur
or be deemed to have occurred, in each case by reason of any Merger Event. This
Agreement and the Rights shall terminate, without any action by any party
hereto, effective upon the Merger Effective Time (as defined in the Merger
Agreement)."

         6. Except for the amendments made hereby, the Rights Agreement shall
continue in full force and effect.

         7. Section 31 of the Rights Agreement is hereby incorporated by
reference herein as if set forth herein.

                                       2
<PAGE>

         8. This Amendment may be executed in any number of counterparts and
each of such counterparts shall for all purposes be deemed to be an original,
and all such counterparts shall together constitute one and the same instrument.

                            [signature page follows]

                                       3
<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Amendment to be duly
executed and attested, all as of the day and year first written above.

                                        AMLI RESIDENTIAL PROPERTIES TRUST

                                        By:    /s/ Gregory T. Mutz
                                           -------------------------------
                                        Name:  Gregory T. Mutz
                                        Title: Chief Executive Officer
Attest:

By:    /s/ Charlotte Sparrow
   ------------------------------
Name:  Charlotte Sparrow
Title: Secretary

                                       4

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