Document:

Exhibit 10.12

 

EXECUTION VERSION

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT
is made as of the 4th day of February, 2016 (the “Agreement”), by and among (i) NICOLET NATIONAL BANK (the “Bank”),
a National Bank organized under the laws of the State of Wisconsin, a wholly owned subsidiary of NICOLET BANKSHARES, INC. (the
“Company”), a bank holding company organized under the laws of the State of Wisconsin, (ii) the Company, and (iii)
PATRICK J. MADSON, a resident of the State of Wisconsin (the “Executive”).

 

RECITALS:

 

The Bank desires to
employ the Executive as the SVP – Wealth Management of the Bank and the Executive desires to accept such employment on the
terms and conditions set forth herein;

 

Therefore, in consideration
of the mutual agreements set forth herein, the parties hereby agree as follows:

 

1.         Definitions.
Whenever used in this Agreement, the following terms and their variant forms shall have the meaning set forth below:

 

1.1        “Agreement”
shall mean this Agreement and any exhibits incorporated herein together with any amendments hereto made in the manner described
in this Agreement.

 

1.2       “Area”
shall mean the geographic area within a fifty (50) mile radius of the Bank’s corporate office and each branch office, it
being the express intent of the parties that the Area as defined herein is the area where the Executive performs or performed services
on behalf of the Bank under this Agreement as of, or within a reasonable time prior to, the termination of the Executive's employment
hereunder.

 

1.3        “Bank
Information” means Confidential Information and Trade Secrets.

 

1.4       “Business
of the Bank” shall mean the business conducted by the Bank, which is the business of commercial banking.

 

1.5       “Cause”
shall mean:

 

1.5.1    With
respect to termination by the Bank:

 

(a)       a
material breach of the terms of this Agreement by the Executive, including, without limitation, failure by the Executive to perform
his duties and responsibilities in the manner and to the extent required under this Agreement, which remains uncured after the
expiration of thirty (30) days following the delivery of written notice of such breach to the Executive by the Bank. Such notice
shall (i) specifically identify the duties that the Board of Directors of the Bank believes the Executive has failed to perform,
(ii) state the facts upon which such Board of Directors made such determination, and (iii) be approved by a resolution passed by
two-thirds (2/3) of the directors then in office;

(b)       conduct
by the Executive that amounts to fraud, dishonesty or willful misconduct in the performance of his duties and responsibilities
hereunder;

 

     

     

    

 

(c)       arrest
for, charged in relation to (by criminal information, indictment or otherwise), or conviction of the Executive during the Term
of this Agreement of a crime involving breach of trust or moral turpitude;

 

(d)       conduct
by the Executive that amounts to gross and willful insubordination or inattention to his duties and responsibilities hereunder;
or

 

(e)       conduct
by the Executive that results in removal from his position as an officer or executive of the Bank pursuant to a written order by
any regulatory agency with authority or jurisdiction over the Bank.

 

1.5.2    With
respect to termination by the Executive, the following conditions will establish good reason for the Executive to terminate his
employment and receive compensation as set forth in section 4.1 of the Agreement so long as the termination occurs during a period
of time not to exceed two years following the occurrence of any of the conditions without the Executive’s consent, the Executive
provides notice to the Bank of the good reason condition within ninety (90) days after the condition arises and the Bank has 30
days to cure the condition:

 

(a)       a
material diminution to the scope of the Executive’s authority (including supervisory authority), duties or responsibility;

 

(b)       following
a Change of Control, a material diminution of reporting relationship;

 

(c)       following
a Change of Control, a material change in the geography where the Executive must perform his service (e.g. a location that is beyond
a 50-mile radius from the Executive’s office location immediately prior to the Change of Control);

 

(d)       following
a Change of Control, any material decrease in base compensation, bonus opportunity or other benefits provided for in Section 4
from the level in effect immediately prior to the Change of Control;

 

(e)       any
other material breach in the Agreement.

 

1.6       “Change
of Control” means any one of the following events the effective date of which occurs during the Term:

 

(a)       the
acquisition by any one person, or more than one person acting as a group (other than any person or more than one person acting
as a group who is considered to own more than fifty percent (50%) of the total fair market value or voting power of the Bank or
the Company, as applicable, prior to such acquisition) of stock of the Bank or the Company, as applicable, that, together with
stock held by such person or group, constitutes more than fifty percent (50%) of the total fair market value
or voting power of the stock of the Bank or the Company, as applicable;

 

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(b)       the
date any one person, or more than one person acting as a group, acquires (or has acquired during the twelve-month period ending
on the date of the most recent acquisition by such person or group, which date is not prior to the first day of the Term) ownership
of stock of the Bank or the Company, as applicable, possessing thirty percent (30%) or more of the total voting power of the stock
of the Bank or the Company, as applicable;

 

(c)       the
date a majority of members of the Company’s Board of Directors is replaced during any twelve-month period, commencing no
earlier than the first day of the Term, by the directors whose appointment is not endorsed by a majority of the members of the
Company’s Board of Directors before the date of the appointment or election; or

 

(d)       the
date that any one person, or more than one person acting as a group, acquires (or has acquired during the twelve-month period ending
on the date of the most recent acquisition by such person or group, which date is not prior to the first day of the Term) assets
of the Company that have a total gross fair market value of forty percent (40%) or more of the total gross fair market value of
all of the assets of the Company immediately before such acquisition or acquisitions; provided, however, that transfers to the
following entities or person(s) shall not be deemed to result in a Change of Control under this Subsection (d):

 

(i)       an
entity that is controlled by the shareholders of the Company immediately after the transfer;

 

(ii)      a
shareholder (determined immediately before the asset transfer) of the Company in exchange for or with respect to its stock;

 

(iii)      an
entity, fifty percent (50%) or more of the total value or voting power of which is owned, directly or indirectly, by the Company;

 

(iv)     a
person, or more than one person acting as a group, that owns, directly or indirectly, fifty percent (50%) or more of the total
value or voting power of all the outstanding stock of the Company; or

 

(v)      an
entity, at least fifty percent (50%) of the total value or voting power of which is owned, directly or indirectly, by a person
described in the above Subsection (d)(iv).

 

For purposes of this
Section 1.6, persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger,
consolidation, purchase or acquisition of stock, or similar business transaction with the Company or the Bank. Notwithstanding
the other provisions of this Section 1.6, no Change of Control shall be deemed to have occurred for purposes of this Agreement
by reason of any actions or events in which the Executive participates in a capacity other than in the Executive’s capacity
as an employee and, if applicable,

 

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the Executive’s capacity as a director
or shareholder of the Company or the Bank. Notwithstanding the other provisions of this Section 1.6, in the event of a merger,
consolidation, reorganization, share exchange or other transaction as to which the holders of the capital stock of the Company
before the transaction continue after the transaction to hold, directly or indirectly through a holding company or otherwise, shares
of capital stock of the Company (or other surviving company) representing more than fifty percent (50%) of the value or ordinary
voting power to elect directors of the capital stock of the Company (or other surviving company), such transaction shall not constitute
a Change of Control. The provisions of this Section 1.6 shall be construed in a manner consistent with the applicable provisions
of Section 409A of the Internal Revenue Code and the rules and regulations promulgated thereunder.

 

1.6A     “Company”
shall mean Nicolet Bankshares, Inc., a bank holding company incorporated under the laws of the State of Wisconsin.

 

1.7       “Confidential
Information” means data and information relating to the business of the Bank (which does not rise to the status of a
Trade Secret) which is or has been disclosed to the Executive or of which the Executive became aware as a consequence of or through
the Executive's relationship to the Bank and which has value to the Bank and is not generally known to its competitors. Confidential
Information shall not include any data or information that has been voluntarily disclosed to the public by the Bank (except where
such public disclosure has been made by the Executive without authorization) or that has been independently developed and disclosed
by others, or that otherwise enters the public domain through lawful means.

 

1.8       “Disability”
shall mean the inability of the Executive to perform each of his material duties under this Agreement for the duration of the short-term
disability period under the Bank's policy then in effect (or, if no such policy is in effect, a period of one-hundred eighty (180)
consecutive days) as certified by a physician chosen by the Bank and reasonably acceptable to the Executive.

 

1.9       Reserved

 

1.10     “Initial
Term” shall mean that period of time commencing on the date of this Agreement and running until the close of business
on the last business day immediately preceding the third anniversary of the date of this Agreement or any earlier termination of
employment of the Executive under this Agreement as provided for in Section 3.

 

1.10A  “Separation
from Service” shall mean a termination of the Executive’s employment with the Bank and all affiliated companies
that, together with the Bank, constitute the ‘service recipient’ within the meaning of Code Section 409A and the regulations
thereunder that constitutes a ‘separation from service’ within the meaning of Code Section 409A and the regulations
thereunder.

 

1.11     “Term”
shall mean the last day of the Initial Term or most recent subsequent renewal period.

 

1.12     “Trade
Secrets” means Bank information including, but not limited to, technical or nontechnical data, formulas, patterns, compilations,
programs, devices, methods, techniques, drawings, processes, financial data, financial
plans, product plans or lists of actual or potential customers or suppliers which:

 

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(a)        derives
economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by,
other persons who can obtain economic value from its disclosure or use; and

 

(b)        is
the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

 

2.         Duties.

 

2.1       Position.
The Executive is employed as Senior Vice President – Wealth Management of the Bank, subject to the direction of the Chairman
& CEO of Nicolet Bankshares, Inc. or its designee(s) and shall perform and discharge well and faithfully the duties which may
be assigned to him from time to time by the Bank in connection with the conduct of its business. The duties and responsibilities
of the Executive are set forth on Exhibit A attached hereto.

 

2.2       Full-Time
Status. In addition to the duties and responsibilities specifically assigned to the Executive pursuant to Section 2.1 hereof,
the Executive shall:

 

(a)       devote
substantially all of his time, energy and skill during regular business hours to the performance of the duties of his employment
(reasonable vacations and reasonable absences due to illness excepted) and faithfully and industriously perform such duties;

 

(b)       diligently
follow and implement all reasonable and lawful management policies and decisions communicated to him by the Board of Directors
of the Bank; and

 

(c)       timely
prepare and forward to the Chairman & CEO or its designees all reports and accountings as may be requested of the Executive.

 

2.3       Permitted
Activities. The Executive shall devote his entire business time, attention and energies to the Business of the Bank and the
Company and shall not during the Term be engaged (whether or not during normal business hours) in any other business or professional
activity, whether or not such activity is pursued for gain, profit or other pecuniary advantage; but this shall not be construed
as preventing the Executive from:

 

(a)       investing
his personal assets in businesses which (subject to clause (b) below) are not in competition with the Business of the Bank or the
Company and which will not require any services on the part of the Executive in their operation or affairs and in which his participation
is solely that of an investor;

 

(b)
     purchasing securities in any corporation whose securities are regularly traded
provided that such purchase shall not result in him collectively owning beneficially at any time
five percent (5%) or more of the equity securities of any business in competition with the Business of the Bank or the Company;
and

 

(c)        participating
in civic and professional affairs and organizations and conferences, preparing or publishing papers or books or teaching so long
as the Board of Directors of the Bank approves of such activities prior to the Executive's 

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engaging in them.

 

3.         Term
and Termination.

 

3.1      Term.
This Agreement shall remain in effect for the Term. While this Agreement remains in effect, it shall automatically renew each day
after the date of this Agreement so that the Term remains a three-year term from day-to-day hereafter unless the Bank or the Executive
gives written notice to the other of its intent that the automatic renewals shall cease. In the event such notice of non-renewal
is properly given, this Agreement and the Term shall expire on the third anniversary of the thirtieth (30th) day following the
date such written notice is received.

 

3.2       Termination.
During the Term, the employment of the Executive under this Agreement may be terminated only as follows:

 

3.2.1    By
the Bank:

 

(a)       Reserved;

 

(b)      For
Cause, upon written notice to the Executive pursuant to Section 1.5.1 hereof, where the notice has been approved by a resolution
passed by two-thirds (2/3) of the directors of the Bank then in office;

 

(c)       Without
Cause at any time, provided that the Bank shall give the Executive thirty (30) days' prior written notice of its intent to terminate,
in which event the Bank shall be required to continue to meet its obligations to the Executive under Section 4.1 for a period equal
to the lesser of (i) twelve (12) months following the termination or (ii) the remaining Term of the Agreement; or

 

(d)       Upon
the Disability of Executive at any time, provided that the Bank shall give the Executive thirty (30) days' prior written notice
of its intent to terminate, in which event, the Bank shall be required to continue to meet its obligations under Section 4.1 for
a period of six (6) months following the termination or until the Executive begins receiving payments under the Bank's long-term
disability policy, whichever occurs first.

 

3.2.2    By
the Executive:

 

(a)       For
Cause, in which event the Bank shall be required to continue to meet its obligations under Section 4.1 for a period equal to the
lesser of (i) twelve (12) months following the termination or (ii) the remaining Term of the Agreement; or

 

(b)       Without
Cause or upon the Disability of the Executive, provided that the Executive shall give the Bank sixty (60) days' prior written notice
of his intent to terminate.

 

3.2.3     At
any time upon mutual, written agreement of the parties.

 

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3.2.4    Notwithstanding
anything in this Agreement to the contrary, the Term shall end automatically upon the Executive's death.

 

3.3       Change
of Control.

 

(a)       If,
within six (6) months after a Change of Control as defined in Section 1.6(a),(b) or (c), the Executive terminates his employment
with the Bank under this Agreement for Cause, the Executive, or in the event of his subsequent death, his designated beneficiaries
or his estate, as the case may be, shall receive, as liquidated damages, in lieu of all other claims, a severance payment equal
to one and one-half (1.5) times the Executive’s then current Base Salary and bonus then in effect, if any, paid in a lump
sum cash payment in accordance with Section 3.3A.

 

(b)       In
no event shall the payment(s) described in this Section 3.3 exceed the amount permitted by Section 280G of the Internal Revenue
Code, as amended (the ‘Code’). Therefore, if the aggregate present value (determined as of the date of the Change of
Control in accordance with the provisions of Section 280G of the Code) of both the severance payment and all other payments to
the Executive in the nature of compensation which are contingent on a change in ownership or effective control of the Bank or in
the ownership of a substantial portion of the assets of the Bank (the ‘Aggregate Severance’) would result in a ‘parachute
payment,’ as defined under Section 280G of the Code, then the Aggregate Severance shall not be greater than an amount equal
to 2.99 multiplied by the Executive’s ‘base amount’ for the ‘base period,’ as those terms are defined
under Section 280G of the Code. In the event the Aggregate Severance is required to be reduced pursuant to this Section 3.3, the
latest payments in time shall be reduced first and if multiple portions of the Aggregate Severance to be reduced are paid at the
same time, any non-cash payments will be reduced before any cash payments, and any remaining cash payments will be reduced pro
rata.

 

3.3A    Severance.

 

(a)       Payment
of severance amounts due upon the Executive’s termination of employment pursuant to Sections 3.2.1(c) or (d); Section 3.2.2(a);
or Section 3.3, as applicable, including any reimbursements to which the Executive is entitled pursuant to Section 4.3, shall commence
or be made, as applicable, within ninety (90) days after the Executive experiences a Separation from Service on or after the date
the Executive’s employment is terminated.

 

(b)       Notwithstanding
any provision in the Agreement to the contrary, to the extent necessary to avoid the imposition of tax on the Executive under Code
Section 409A, any payments that are otherwise payable to the Executive within the first six (6) months following
the effective date of the Executive’s Separation from Service, shall be suspended and paid as soon as practicable following
the end of the six-month period following such effective date if, immediately prior to the Executive’s Separation from Service,
the Executive is determined to be a ‘specified employee’ (within the meaning of Code Section 409A(a)(2)(B)(i)) of the
Bank (or any related ‘service recipient’ within the meaning of Code Section 409A and the regulations thereunder). Any
payments suspended by operation of the foregoing

 

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 sentence shall be paid as a lump sum in the seventh month following such effective
date. Payments (or portions thereof) that would be paid latest in time during the six-month period will be suspended first.

 

3.4       Effect
of Termination. Upon termination of the Executive's employment hereunder, the Bank shall have no further obligations to the
Executive or the Executive's estate with respect to this Agreement, except for the payment of salary and bonus amounts, if any,
accrued pursuant to Sections 4.1 and 4.2 hereof and unpaid as of the effective date of the termination of employment and payments
set forth in Sections 3.2.1(a), (c) or (d); Section 3.2.2(a); Section 3.3; and Section 4.3, as applicable. Nothing contained herein
shall limit or impinge upon any other rights or remedies of the Bank or the Executive under any other agreement or plan to which
the Executive is a party or of which the Executive is a beneficiary.

 

4.         Compensation.
The Executive shall receive the following salary and benefits during the

Term, except as otherwise provided below:

 

4.1      Base
Salary. During the Term in effect at the time of this Agreement, the Executive shall be compensated at a base rate of $300,000
per year (the “Base Salary”). The Executive's Base Salary shall be reviewed by the Chairman & CEO at least annually,
and based on its evaluation of Executive's performance, may recommend to the Board of Directors of the Bank that the Executive's
Base Salary be increased in such amount, if any, as may be determined by the Board of Directors of the Bank. Base Salary shall
be payable in accordance with the Bank's normal payroll practices.

 

4.2       Incentive
Compensation. The Executive shall be eligible to receive annual bonus compensation, if any, at a target rate of 30% of the
Executive’s base pay as recommended by the Chairman & CEO and as approved by the Board of Directors of the Bank pursuant
to any incentive compensation program as may be adopted from time to time by the Bank.

 

4.3       Health
Insurance.

 

(a)        In
the event of termination by the Bank without Cause (Section 3.2.1(c)) or by the Executive for Cause (Section 3.2.2(a)) or following
a Change of Control (Section 3.3), the Bank shall reimburse Executive for the cost of premium payments paid by the Executive to
continue his then existing health insurance for herself and his eligible dependents as provided by the Bank for a period of twelve
(12) months following the date of termination of employment.

 

(b)       In
no event shall any reimbursement pursuant to this Section 4.3 be paid after the last day of the taxable year following the taxable
year in which the expense was incurred. The amount of reimbursable expenses incurred in one taxable year shall not affect the expenses
eligible for reimbursement in any other taxable year. Such right to reimbursement
is not subject to liquidation or exchange for another benefit.

 

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4.4       Business
Expenses; Memberships. The Bank specifically agrees to reimburse the Executive for:

 

(a)       reasonable
and necessary business (including travel) expenses incurred by him in the performance of his duties hereunder, as approved by the
Chairman & CEO; and

 

(b)       reasonable
dues and business related expenditures, including initiation fees, associated with memberships, as selected by the Executive, including
country clubs and professional associations which are commensurate with his position.

 

provided, however, that the Executive shall,
as a condition of reimbursement, submit verification of the nature and amount of such expenses in accordance with reimbursement
policies from time to time adopted by the Bank and in sufficient detail to comply with rules and regulations promulgated by the
Internal Revenue Service.

 

4.5       Company
Car. The Bank shall provide Executive with a company car. The year, make, model, and replacement of such company car shall
be commensurate with the year, make, model and replacement of the company cars the Bank provides to other Bank officers. Subject
to Bank approval, the Executive shall have the right to select the make and model the company car. The Executive’s personal
use of the company car shall be subject to taxation, as is required by applicable law.

 

4.6       Restricted
Stock. As of the Executive’s hire date, the Bank grants Executive seventeen thousand (17,000) shares of restricted stock
(the “Restricted Stock”), which shall vest evenly over a five (5) year period. For example, on each of the first five
(5) anniversaries of this grant date, three thousand four hundred (3,400) shares of Restricted Stock shall vest.

 

4.7       Benefits.
In addition to the benefits specifically described in this Agreement, the Executive shall be entitled to such benefits as may be
available from time to time to executives of the Bank similarly situated to the Executive. All such benefits shall be awarded and
administered in accordance with the Bank's standard policies and practices. Such benefits may include, by way of example only,
vacation pay, profit-sharing plans, retirement or investment funds, dental, health, life and disability insurance benefits and
such other benefits as the Bank deems appropriate.

 

4.8       Withholding.
The Bank may deduct from each payment of compensation hereunder all amounts required to be deducted and withheld in accordance
with applicable federal and state income, FICA and other withholding requirements.

 

4.9       Reimbursement
of Expenses; In-Kind Benefits. All expenses eligible for reimbursement under this Agreement must be incurred by the Executive
during the Term of this Agreement to be eligible for reimbursement. All in-kind benefits described in this Agreement must be provided
by the Bank during the Term of this Agreement. The amount of reimbursable expenses incurred, and the amount of in-kind benefits
provided, in one taxable year shall not 

affect the expenses eligible for reimbursement,
or in-kind benefits provided, in any other taxable year. All reimbursements shall be paid as soon as administratively practicable,
but in no event shall any reimbursement be paid after the last day of the calendar year following the calendar year in which the
expense was incurred. Such right to reimbursement or in-kind benefits are not subject to liquidation or exchange for another benefit.

 

5.         Bank
Information.

 

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5.1       Ownership
of Bank Information. All Bank Information received or developed by the Executive while employed by the Bank will remain the
sole and exclusive property of the Bank.

 

5.2       Obligations
of the Executive. The Executive agrees:

 

(a)       to
hold Bank Information in strictest confidence;

 

(b)       not
to use, duplicate, reproduce, distribute, disclose or otherwise disseminate Bank Information or any physical embodiments of Bank
Information; and

 

(c)       in
any event, not to take any action causing or fail to take any action necessary in order to prevent any Bank Information from losing
its character or ceasing to qualify as Confidential Information or a Trade Secret.

 

In the event that the
Executive is required by law to disclose any Bank Information, the Executive will not make such disclosure unless (and then only
to the extent that) the Executive has been advised by independent legal counsel that such disclosure is required by law and then
only after prior written notice is given to the Bank when the Executive becomes aware that such disclosure has been requested and
is required by law. This Section 5 shall survive for a period of twelve (12) months following termination of this Agreement for
any reason with respect to Confidential Information, and shall survive termination of this Agreement for any reason for so long
as is permitted by applicable law, with respect to Trade Secrets.

 

5.3       Delivery
upon Request or Termination. Upon request by the Bank, and in any event upon termination of his employment with the Bank, the
Executive will promptly deliver to the Bank all property belonging to the Bank, including, without limitation, all Bank Information
then in his possession or control.

 

6.         Non-Competition.
The Executive agrees that during his employment by the Bank hereunder and, in the event of his termination:

 

• by the Bank for Cause
pursuant to Section 3.2.l(b),

 

• by the Executive without
Cause pursuant to Section 3.2.2(b), or

 

• by the Executive in connection
with a Change of Control pursuant to Section 3.3,

 

for a period of twelve (12) months thereafter,
he will not (except on behalf of or with the prior written consent of the Bank), within the Area, either directly or indirectly,
on his own behalf or in the service or on behalf of others, as an executive employee or in any other capacity which involves duties
and responsibilities similar to those undertaken for the Bank (including as an organizer or proposed executive officer of a new
financial institution), engage in any business which is the same as or essentially the same as the Business of the Bank and which
is or is foreseeable to be competitive with the Bank. The Executive acknowledges that the degree of Bank Confidential Information
made available to him are protectable interests warranting such restriction.

 

7.         Non-Solicitation
of Customers. The Executive agrees that during his employment by the Bank hereunder and, in the event of his
termination:

 

• by the Bank for Cause
pursuant to Section 3.2.l(b),

 

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• by the Executive without
Cause pursuant to Section 3.2.2(b), or

 

• by the Executive in connection
with a Change of Control pursuant to Section 3.3,

 

for a period of twelve (12) months thereafter,
he will not (except on behalf of or with the prior written consent of the Bank), within the Area, on his own behalf or in the service
or on behalf of others, solicit, divert or appropriate or attempt to solicit, divert or appropriate, any business from any of the
Bank's customers, including actively sought prospective customers, with whom the Executive has or had material contact during the
last two (2) years of his employment, for purposes of providing products or services that are competitive with the Business of
the Bank.

 

8.         Non-Solicitation
of Employees. The Executive agrees that during his employment by the Bank hereunder and, in the event of his
termination:

 

• by the Bank for Cause
pursuant to Section 3.2.1(b),

 

• by the Executive without
Cause pursuant to Section 3.2.2(b), or

 

• by the Executive in connection
with a Change of Control pursuant to Section 3.3,

 

for a period of twelve (12) months thereafter,
he will not, within the Area, on his own behalf or in the service or on behalf of others, solicit, recruit or hire away or attempt
to solicit, recruit or hire away, any employee of the Bank to another person or entity providing products or services that are
competitive with the Business of the Bank, whether or not:

 

• such employee is a full-time
employee or a temporary employee of the Bank,

 

• such employment is pursuant
to written agreement, and

 

• such employment is for
a determined period or is at will.

 

9.         Remedies.
The Executive agrees that the covenants contained in Sections 5 through 8 of this Agreement are of the essence of this Agreement;
that each of the covenants is reasonable and necessary to protect the business, interests and properties of the Bank, and that
irreparable loss and damage will be suffered by the Bank should he breach any of the covenants. Therefore, the Executive agrees
and consents that, in addition to all the remedies provided by law or in equity, the Bank shall be entitled to a temporary restraining
order and temporary and permanent injunctions to prevent a breach or contemplated breach of any of the covenants. The Bank and
the Executive agree that all remedies available to the Bank or the Executive, as applicable, shall be cumulative.

 

10.       Severability.
The parties agree that each of the provisions included in this Agreement is separate, distinct and severable from the other provisions
of this Agreement and that the invalidity or unenforceability of any Agreement provision shall not affect the validity or enforceability
of any other provision of this Agreement. Further, if any provision of this Agreement is ruled invalid or unenforceable by a court
of competent jurisdiction because of a conflict between the provision and any applicable law or public policy, the provision shall
be redrawn to make the provision consistent with and valid and enforceable under the law or public policy.

 

11.       No
Set-Off by the Executive. The existence of any claim, demand, action or cause of action by the Executive against the Bank whether
predicated upon this Agreement or otherwise, shall not constitute a defense to the enforcement by the Bank of any of its rights
hereunder.

 

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12.       Notice.
All notices and other communications required or permitted under this Agreement shall be in writing and, if mailed by prepaid first-class
mail or certified mail, return receipt requested, shall be deemed to have been received on the earlier of the date shown on the
receipt or three (3) business days after the postmarked date thereof. In addition, notices hereunder may be delivered by hand or
overnight courier, in which event the notice shall be deemed effective when delivered. All notices and other communications under
this Agreement shall be given to the parties hereto at the following addresses:

 

	(i)	If to the Bank, to it at: 
	 	 
	 	Post Office Box 23900
	 	Green Bay, Wisconsin  54305-3900
	 	 
	(ii)	If to the Executive, to him at:
	 	 
	 	1425 Angel’s Path
	 	De Pere, WI  54115

 

13.       Assignment.
Neither party hereto may assign or delegate this Agreement or any of its rights and obligations hereunder without the written consent
of the other party to this Agreement; provided, however, that the rights and obligations of the Bank shall apply to its successor(s)
and the rights of the Executive shall inure to the benefit of the heirs or the estate of the Executive.

 

14.       Waiver.
A waiver by one party to this Agreement of any breach of this Agreement by the other party to this Agreement shall not be effective
unless in writing, and no waiver shall operate or be construed as a waiver of the same or another breach on a subsequent occasion.

 

15.       Arbitration.
Any controversy or claim arising out of or relating to this contract, or the breach thereof, shall be settled by binding arbitration
in accordance with the Commercial Arbitration Rules of the American Arbitration Association. Judgment upon the award rendered by
the arbitrator may be entered only in a state court of Wisconsin or the federal court for the Eastern District of Wisconsin. The
Bank and the Executive agree to share equally the fees and expenses associated with the arbitration proceedings.

 

16.       Attorneys'
Fees. In the event that the parties have complied with this Agreement with respect to arbitration of disputes and litigation
ensues between the parties concerning the enforcement of an arbitration award, the party prevailing in such litigation shall be
entitled to receive from the other party all reasonable costs and expenses, including without limitation attorneys’ fees,
incurred by the prevailing party in connection with such litigation, and the other party shall pay such costs and expenses to
the prevailing party within sixty (60) days after a final determination (excluding any appeals) is made with respect to the litigation.

 

17.       Applicable
Law. This Agreement shall be construed and enforced under and in accordance with the laws of the State of Wisconsin.

 

18.       Interpretation.
Words importing any gender include all genders. Words importing the singular form shall include the plural and vice versa. The
terms “herein”, “hereunder”, “hereby”, “hereto”, “hereof' and any similar
terms refer to this Agreement. Any captions, titles or headings

 

     12

     

    

 

preceding the text of any article, section
or subsection herein are solely for convenience of reference and shall not constitute part of this Agreement or affect its meaning,
construction or effect.

 

19.       Entire
Agreement. This Agreement embodies the entire and final agreement of the parties on the subject matter stated in this Agreement.
No amendment or modification of this Agreement shall be valid or binding upon the Bank or the Executive unless made in writing
and signed by both parties.

 

20.       Rights
of Third Parties. Nothing herein expressed is intended to or shall be construed to confer upon or give to any person, firm
or other entity, other than the parties hereto and their permitted assigns, any rights or remedies under or by reason of this Agreement.

 

21.       Survival.
The obligations of the Executive pursuant to Sections 5, 6, 7, 8 and 9 shall survive the termination of the employment of the Executive
hereunder for the period designated under each of those respective sections.

 

IN WITNESS WHEREOF,
the parties have caused this Employment Agreement to be executed on the day and year first above written.

 

	THE BANK and THE COMPANY:	 	THE EXECUTIVE:
	 	 	 
	By:      /s/
    Robert B.
    Atwell                                	 	  /s/ Patrick J. Madson                                      
	 	 	 
	Print Name: Robert
    B. Atwell                            	 	Print Name: Patrick J. Madson                          
	 	 	 
	Title: Chairman and CEO                                  	 	 

 

     13

     

    

 

Exhibit A

 

Duties and Responsibilities of the Executive

 

Under the direction of the Chairman & CEO of Nicolet Bankshares,
Inc., the Executive is responsible for the following:

 

Principal Accountabilities:

 

		·	Overall responsibility for the financial
and investment performance of the Company’s wealth management business. 

 

		·	Sets the direction, policies, and guidelines
for the Bank’s wealth management line of business.

 

		·	Develops the investment policy and directs
all wealth management activities to achieve the investment objectives of the Company and its clients.

 

		·	Establishes goals and oversees the development
and implementation of investment policies and strategies and business development activities.

 

		·	Oversees and manages wealth management
advisors and staff. Hires, coaches and motivates the wealth management team to achieve and exceed benchmarks and sales goals. Provides
investment expertise and support to advisors to assist in the closing and retention of business.

 

		·	Evaluates and assigns appropriate books
of clients to advisors as appropriate.

 

		·	Stays abreast of current rules and regulations
pertaining to wealth management services. 

 

		·	Develops and maintains a good understanding
of the Company’s competitors and develops strategies around this understanding.

 

		·	Identifies, attracts and closes new business,
both individually and as part of the Wealth Management team of advisors.

 

		·	Networks within the community to create
new opportunities, focusing on centers of influence.

 

		·	Develops and/or makes appropriate referrals
for lending and deposit business for the Bank.

 

     14Exhibit

EXHIBIT 10.1

Summary Sheet: Terms of Employment for Named Executive Officers for 2017

Employment Status

Pursuant to the Federal Home Loan Bank Act, the employees of the Federal Home Loan Bank of San Francisco (the "Bank"), including the Bank's chief executive officer, the chief financial officer and other current named executive officers as of December 31, 2016 (J. Gregory Seibly, Kenneth C. Miller, Lawrence H. Parks and Suzanne Titus-Johnson) (the “named executive officers”), are “at will” employees. The named executive officers may resign at any time and the Bank may terminate their employment at any time for any reason or no reason, with or without cause and with or without notice.

Each of the named executive officers receives a base salary and is eligible to participate in the Bank's executive incentive compensation plans and comprehensive benefit programs, including both qualified and nonqualified retirement benefit plans. Base salaries for 2017 for the named executive officers are: J. Gregory Seibly, $850,000; Kenneth C. Miller, $467,300; Lawrence H. Parks, $463,100; and Suzanne Titus-Johnson, $415,100.

On occasion, the Bank may pay for resort activities for employees, including our named executive officers, in connection with business-related meetings; and in some cases, the Bank may pay the expenses for spouses/partners accompanying employees to these meetings or other Bank-sponsored events. 

The Board adopted the Corporate Senior Officer Severance Policy (Senior Officers' Policy) applicable to the president, executive vice president, and senior vice presidents. The Senior Officers' Policy provides severance benefits in the event that the employee's employment is terminated because the employee's job or position is eliminated or because the job or position is substantially modified so that the employee is no longer qualified or cannot perform the revised job. For these officers, severance under the Senior Officers' Policy is equal to the greater of (i) 12 weeks of the officer's base salary, or (ii) the sum of three weeks of the officer's base salary, plus three weeks of the officer's base salary for each full year of service and three weeks of base salary prorated for each partial year of service at the Bank to a maximum of 52 weeks of base salary. The Senior Officers' Policy also provides one month of continued health and life insurance benefits and, at the Bank's discretion, outplacement assistance. The Senior Officers' Policy also provides severance payments in connection with a "Change in Control" (as defined by the Senior Officers' Policy).

The Bank entered into an employment agreement with Mr. Seibly with an initial term of three years and one-year terms thereafter, unless terminated at any time by either the Bank or Mr. Seibly. Under the terms of the agreement, Mr. Seibly initially received a base annual salary of $800,000 and a sign-on payment of $600,000 to be received in two equal installments within 30 days of each of the first and second anniversaries of Mr. Seibly’s employment start date, and subject to clawback in certain circumstances. The employment agreement provides for a severance payment equal to (i) two times his “Base Salary” (as defined in his employment agreement); and (ii) two times his “Annual Incentive Amounts” (as defined in his employment agreement) and continued benefits if Mr. Seibly’s employment is terminated under certain circumstances in connection with a “Change in Control” (as defined in his employment agreement) of the Bank. Mr. Seibly will also be eligible to participate in the Bank’s various executive incentive and employee benefit plans, including the Bank’s Supplemental Executive Retirement Plan (SERP), 2016 President’s Incentive Plan, and the 2014-2016, 2015-2017, and 2016-2018 Executive Performance Unit Plans. Under Mr. Seibly’s employment agreement, the years of credited service and the amount of Bank contribution credits under the SERP are as follows: 10% of total annual compensation for less than 4 years of credited service; 15% of total annual compensation for 4 or more years but less than 9 years of credited service; and 20% of total annual compensation for 9 or more years of credited service. In addition, Mr. Seibly’s employment agreement provides that he will receive a supplemental SERP contribution credit in the amount of $600,000, to be credited in three equal installments over two years, with the first installment credited at the time his employment begins and the second and third installments on the first and second anniversaries of his employment commencement, respectively. These supplemental SERP contribution credits will vest immediately when credited. Mr. Seibly’s employment agreement also provides for reimbursement of his 

relocation cost up to $250,000 and payment to the appropriate taxing authorities of up to $220,000 of any relocation tax obligations.

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