Document:

Deferred Compensation Plan for Selected Directors

 Exhibit 10.3 
 DEFERRED COMPENSATION PLAN 
 FOR 
 SELECTED DIRECTORS OF BAYLAKE BANK 
 (MONEY PURCHASE COMPENSATION PLAN) 

 BAYLAKE BANK 
 DEFERRED COMPENSATION PLAN 
 ARTICLE I - PURPOSE, DEFINITIONS, AND CONSTRUCTION 
 1.1 Purpose. Baylake Bank hereby adopts this Voluntary Deferred Compensation Plan, hereafter referred to as the Plan, to permit certain Directors selected by the
company to defer a portion of their anticipated director fees and to have such deferred directors fees accounted for and administered in accordance with the following provisions. 
 It is intended that the Plan shall constitute and shall be construed and administered as an unfunded plan of deferred compensation within the meaning of
the Employee Retirement Income Security Act of 1974 (ERISA), as amended, and the Internal Revenue Code (Code) of 1986, as amended. The Plan is not intended to be qualified under 401(a) of the Code. 
 1.2 Definitions. For purposes of the Plan, the following words and phrases shall have the meanings set forth below, unless a different meaning is plainly required
by the context. 
 A. “Administrator” shall mean the persons designated and appointed by the Board of Directors as a committee to
have general charge of the administration and interpretation of the Plan. In the absence of specifically appointed persons, the Board shall serve as the committee. 
 B. “Adoption Agreement” shall mean a separate agreement between a Participant and the company which forms a part of the Plan, under which the company agrees to allow the Participant to participate in the
plan and Participant agrees to that participation under the terms set forth herein. 
 C. “Beneficiary” shall mean the person or
persons designated by a Participant to receive payments under the Plan in the Event of Participant’s death, provided that if the Participant has failed to designate a Beneficiary or if designated Beneficiaries predecease the Participant, all
distributions under the Plan shall be payable to Participant’s surviving spouse or, if none, to surviving issue, per stirpes, or, if none, then to his or her estate. 
 D. “Board” shall mean the Board of Directors of the company. 
 E. “Corporation” shall mean Baylake Bank, acting for itself or any subsidiaries and for any successor thereto which assumes the rights and obligations of the company under the plan. 
 F. “Deferral Accounting Record” – the company shall maintain a record for each participant showing the amount and date of each deferral.
This accounting record shall also be updated annually to show interest accrued on the total deferred amount based on an interest rate as determined from time to time as being equal to or exceeding the interest rate paid by insurance companies on
their policy investments. 

 G. “Deferral Form” shall mean the then current Deferral Election Form of a Participant, to be
executed prior to the start of any affected Plan Year, specifying the percentage or dollar amount of fees elected to be deferred for that year. The Deferral Form shall remain in effect for the Plan Year for which it was executed unless revoked or
amended to modify the percentage or amount of the deferral prior to the beginning of the Plan Year. 
 H. “Effective Date” shall
mean December 19, 1995 on which the provisions of the Plan shall be effective by resolution of the Board and after which Participants shall be eligible to participate by entering into an Adoption Agreement with the company. 
 I. “Participant” shall mean any past or present member of the Board and who, by having executed an Adoption Agreement, is participating in the
Plan. Such person shall cease to be a Participant upon Termination or when the balance in the Deferral Account is reduced to zero ($0), whichever is later. 
 J. “Plan” shall mean the company’s Voluntary Deferred Compensation Plan as set for herein. 
 K. “Plan Year” shall mean the consecutive twelve (12) month period commencing January l and ending December 31 of each year. 
 L. “Normal Retirement Date” is the date of the annual meeting in the year which the director reaches age 72. 
 1.3
Gender and number. Except as indicated otherwise, any masculine terminology shall also include reference to the feminine as appropriate and definitions of any term herein in the singular shall also include the plural. 
 1.4 Headings. The headings of articles or sections are inserted for convenience and are not to be regarded as part of the Plan or as indicating or controlling the
meaning or construction of any provision contained herein. 
 1.5 Plan Provisions Controlling. In the event any term or provisions of any summary or
description of the Plan or of any related instrument, agreement, or document are construed as being in conflict with the provisions of the Plan, such Plan provision shall be controlling. 
 1.6 Severability. In the event any Plan provision shall be held illegal or invalid for any reason, such illegality or invalidity shall not affect the remaining provisions of the Plan. The remaining provisions
shall be fully severable and the Plan shall, to the extent practicable, be construed and enforced as if such illegal or invalid provisions were not included therein. 

 1.7 Applicable Law. Subject to the overriding intent that the Plan be unfunded and non-qualified as provided for
Section 1.1, the Plan shall be construed in accordance with the laws of the State of Wisconsin, except to the extent preempted by federal law. 
 ARTICLE II – DEFERRAL ELECTIONS, CONTRIBUTIONS, ADDITIONS 
 AND ACCOUNTING PROCEDURES 
 2.1 Availability of Election. The company shall make available to each participant in December of each Plan Year a Deferral Form to designate a portion of
Participant’s anticipated directors fees for the coming year. All amounts elected to be deferred shall be subject to the terms and conditions of the Plan and shall be subject to FICA taxes, if applicable. No deferral shall be effective for any
Plan Year unless a Deferral Form has been completed and filed with the Administrator prior to January 1 of the year for which the deferral is elected, except that Deferral Forms completed as of the date of Adoption of the Plan, as initial
elections thereunder, shall be effective for the first Plan Year. 
 Notwithstanding the foregoing, an election under a Deferral Form may be
cancelled or amended not more than once annually, prior to the beginning of each Plan Year to increase, reduce or cancel the deferral for such year. Upon such increase, reduction or cancellation, no further change in the amounts to be deferred under
the Plan shall be permitted for the Plan Year. 
 2.2 Record Keeping of Deferral Amounts. Records shall be created and maintained under the Plan in a
manner sufficient to disclose the interest of all Participants. For each Participant, a separate, individual accounting shall be maintained with all credits and charges made thereto in the manner described hereunder. Maintenance of such records
shall be for accounting purposes only. All credits and distributions made from an account shall be credited or charged to the account as of the date paid. See definition at 1.2 - F. 
 2.3 Treatment of Amounts Deferred. Upon execution and filing of the Deferral Form by a Participant, the company shall, within ten (10) days after the end of the period during which a Participant would have
otherwise been entitled to receive payment of the amount deferred, record the deferred amount on the participants accounting record. (1.2 - F)
 2.4
Irrevocability and Nonassignability. All amounts elected to be deferred and credited to a Participant’s Deferral Account shall be treated as irrevocably deferred and no payment of such amount may be received by the Participant, except in
accordance with the eligibility requirements for payment under the Plan. No amount due or expected to become due may be transferred, assigned, pledged, sold, encumbered, or alienated, either by garnishment or by execution or levy by any Participant
or Beneficiary thereof. All amounts due hereunder shall be paid or distributed solely to the Participant or Beneficiary thereof subject to the direction of the Administrator pursuant to the authority granted under Section 4.1 of the Plan.

 2.5 Accounting Procedures. The Administrator shall see to the proper performance of the following procedures as of
the close of each Plan Year: 
 A. First, to credit to the proper accounts all contributions and accounting additions and charge all
distributions made respecting Participant accounting records since the close of the last preceding Plan Year, not previously credited or charged. 
 B. Second, to calculate each year the amount of interest earned on the total amount that the participant has deferred and provide each participant with a print out annually in January of each year showing total amount deferred since
inception, date and amount of each deferment for preceding year, interest earned on the deferred amount, and a projection to retirement age based on current deferment amount at an interest rate that has been paid over the period by insurance
companies on universal life contracts. 
 This accounting procedure and record keeping shall be performed by the company’s accounting
department and shall be reviewed at least once each year by the Administrative Committee. 
 ARTICLE III – DEFERRED COMPENSATION PAYMENTS

 3.1 Eligibility for Deferred Compensation. Subject to limitations set forth under the plan, each Participant or designated Beneficiary thereof
shall become eligible for distribution of deferred compensation under the Plan in the following manner: 
 A. Retirement or Termination. Upon
retirement or termination as a Director with the company, a Participant shall become eligible for payment of deferred compensation. 
 B.
Death. Upon death of a Participant, the Participant’s Beneficiaries shall become eligible for payment of deferred compensation to the extent that the Participant’s prior receipt of payments hereunder has not reduced the Participant’s
Deferral Account to zero ($0). 
 3 .2 Amount and Method of Payment of Deferred Compensation. The total deferred compensation to be paid to a
Participant shall be distributed to such Participant or, in the event of Participant’s death, to his/her Beneficiaries, in one of the following methods, as determined by the Administrator in its sole and absolute discretion, taking into account
the best interests of such Participant or Beneficiary: (i) a single lump sum payment; (ii) annual installments over a period of 10 years (optional monthly payments); or (iii) such combination of the foregoing lump sum payment and
annual installments as deemed reasonable by the Administrator in the best interests of the Participant or Beneficiaries thereof. The Administrative Committee shall confer with the Participant or Beneficiary to best determine the method of
distribution. 

 Upon determination by the Administrator, the method of distribution shall remain in force until the
Deferral Account balance is reduced to zero ($0), except that in the event of the death or financial need of such Participant or Beneficiary, due to illness, disability, or financial emergency, the Administrator may determine such other method of
distribution of the balance of the Deferral Account as, in its sole and absolute discretion, it deems appropriate under the circumstances. 
 A. In the event of a lump sum distribution, the total deferred compensation paid shall be the amount that has been deferred by the Participant up to the time of distribution plus interest accrued on the deferred amounts with interest to be
calculated based on a interest rate as determined by what is the going rate for universal life insurance contracts as determined over the period of the deferrals. 
 B. In the event of an installment distribution, the amount of such installment shall equal the balance of the Participant’s Deferral Account plus the accrued earnings as mentioned above in “A”. The
payment will be made in 10 equal annual payments or 120 equal monthly payments. Payments will be determined by using a rate that is an average of three insurance companies 10 year Installment Immediate annuity contract, or as determined by the IRS
if law requires. 
 3.3 In the event of the death of the Participant during the period of the benefit payout, the Participant’s Beneficiary shall
receive the balance of the payments due over the time remaining or if paid in a lump sum, the balance remaining in the account plus any interest that may have accrued. 
 ARTICLE IV – PLAN ADMINISTRATION 
 4.1 Administrative Committee. The Board shall appoint a committee of at least
three (3) members whose responsibility shall be to provide for the administration of the plan. The committee shall be appointed from members of the Board at the last meeting during each Plan Year to serve for one year or until the next election
thereof. The committee shall have full authority to make decisions, establish regulations, issue directives, and take such actions deemed reasonable and necessary to effectuate the purposes of the plan including the authority to establish such forms
and procedures and require such reports as it shall deem necessary to be prepared by the banks accounting department so as to insure the proper credit of contributions and distribution of benefits hereunder. It is expressly empowered with the sole
authority to interpret the plan, resolve claims made hereunder, and to interpret ambiguities, inconsistencies, and omissions identified in the performance of its duties. 

 4.2 Claims. The Administrator shall consider all claims made by any Participant or Beneficiary for payment under
the plan, provide for a fair and reasonable adjudication thereof, and promptly notify any claimant of its decision on each such claim. In the event of any questions about the disposition of any claim, the committee shall meet with the claimant to
discuss any questions or disputes and attempt to resolve any disagreements pertaining to its decision. In the event that a dispute cannot be resolved, the claim shall be referred to the Board for hearing to review the matter in dispute. If the
dispute is not resolved after the Boards action, it shall then be referred to a Committee of Arbitration. This committee shall consist of one member selected by the Claimant, one member selected by the Company, and a third member selected by the
first two members. This committee shall operate under a generally recognized set of arbitration rules. The parties hereto agree that they and their heirs, personal representative, successors, and assigns shall abide by the decision of the committee
with respect to the controversy that has been properly submitted to them. 
 4.3 Life Insurance and Funding. The company may, in its sole discretion,
apply for and procure as owner and for its own benefit, insurance on the life of the Participant, in such amounts and in such forms as the company may choose. The Participant shall have no interest whatsoever in any such policy or policies,
but at the request of the company he shall submit to medical examinations and supply such information and execute such documents as may be required by the insurance company or companies to whom the company has applied for insurance. Neither
Participant, nor any Beneficiary shall have any claim for benefits accrued or paid under such policies or which may result from the death of any Participant. 
 ARTICLE V – MISCELLANEOUS 
 5.1 Participant Rights. All payments made under the plan shall be independent of and
separate from payments made under any other plan or agreement for compensation which may be in force between the company and any Participant or Beneficiary thereof. Neither the plan nor any document executed herewith shall be construed as
(i) constituting or creating a contract of directorship, (ii) restricting any right of the company to discharge a Participant, with or without cause, or the right of any Participant to terminate directorship, or (iii) establishing any
representation or guaranty as to the amount of compensation to be paid by the company to any Participant for any period of time as a director. 
 5.2
Absence of Liability. The company shall be solely liable for any and all liability determined or otherwise established under the plan as to any Participant or Beneficiary thereof. No director, whether or not a member of the committee directed
to administer the plan, nor any officer of the company, shall have any liability to any Participant, Beneficiary, or any other person, with respect to benefits due or claimed to be due under the plan. Each Participant expressly, knowingly, and
unconditionally waives all claims for liability hereunder. 

 5.3 Amendment and Termination. The plan may be amended or terminated by the written agreement between the company
and any Participant. The party initiating the termination proposal is required to give the other party a minimum of 60 days to respond. However, any plan amendment or termination, or the adoption of any subsequent plan which would cause any plan
Participant to be in constructive receipt of amounts previously deferred, such amendment or termination shall be applicable solely as to future deferrals. Notwithstanding the above, the company shall be entitled to unilaterally amend the plan to
limit future deferrals or to conform the plan to ERISA or Code requirements respecting unfunded plans of deferred compensation. 
 Notwithstanding the foregoing, the plan may not be amended or terminated during a period immediately preceding insolvency if the intended result is to accelerate payment of benefits to Participants such that any Participant’s Deferral
Accounts would be unavailable to the company’s general creditors. 
 5.4 Disclaimer to Participants. The company expressly disclaims any and all
responsibility or liability to any Participant as an advisor or consultant to such Participant relative to the investment or income tax effects of compensation deferred under the plan or any payment of benefits hereunder. 
 5.5 Alienability and Assignment Prohibition. Neither participant, his/her widow or widower, nor any other beneficiary under this Agreement shall have any power or
right to transfer, assign, anticipate, hypothecate, mortgage, commute, modify or otherwise encumber in advance any of the benefits payable hereunder nor shall any of said benefits be subject to seizure for the payment of any debts, judgments,
alimony or separate maintenance owed by the participant or his/her beneficiary, nor be transferable by operation of law in the event of bankruptcy, insolvency or otherwise. In the event participant or any beneficiary attempts assignment,
commutation, hypothecation, transfer or disposal of the benefits hereunder, the Corporation’s liabilities shall forthwith cease and terminate. 
 5.6
Binding Obligation of Corporation and any Successor in Interest. Corporation expressly agrees that it shall not merge or consolidate into or with another Corporation nor sell substantially all of its assets to another Corporation, firm or
person until such Corporation, firm or person expressly agrees, in writing, to assume and discharge the duties and obligations of the Corporation under this Agreement. This Agreement shall be binding upon the parties hereto, their successors,
beneficiaries, heirs and personal representatives. 

 IN WITNESS WHEREOF, the company has caused this
plan to be executed pursuant to the approval and adoption hereof by Resolution of the Board of Directors this 19th
day of December, 1995. 
  

			
	BAYLAKE BANK
		
	BY:	 	/s/ T.L. Herlache
	
	ATTESTED:
		
	BY:	 	/s/ Richard C. Olson, CashierRobert J. Cera Employment Agreement

 Exhibit 10.7 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (“Agreement”) is made as of this 30th day of
June, 2006, by and between Baylake Bank (“Bank”) and Robert J. Cera (“Employee”). 
 RECITALS 
 The Bank desires to employ Employee, and Employee desires to be employed by the Bank, on the terms and conditions set forth herein. 
 The parties believe it is in their best interests to make provision for certain aspects of their relationship during and after the period in which
Employee is employed by the Bank. 
 NOW, THEREFORE, in consideration of the mutual agreements and covenants contained herein, and for other
good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by the Bank and Employee (“Parties”), the Parties agree as follows: 
 ARTICLE I 
 EMPLOYMENT 
 1.1 Term of Employment. The Bank employs Employee, and Employee accepts employment by the Bank, for the period commencing on the start date specified and ending on June 30, 2007 (“Employment Term”),
subject to earlier termination as hereinafter set forth in Article III, below. Employee will start actively working full time on August 21, 2006, but the effective date of this Agreement shall be June 30, 2006; from June 30, 2006
through August 21, 2006, Employee will not be entitled to any compensation. Following the expiration of the Employment Term, this Agreement shall be automatically renewed for successive one (1) year periods (collectively, “Renewal
Terms”; individually, “Renewal Term”) unless, at least 30 days prior to the expiration of the Employment Term or the then current Renewal Term, either party provides the other with a written notice of intention not to renew, in which
case this Agreement shall terminate as of the end of the Employment Term or said Renewal Term, as applicable. If this Agreement is renewed, the terms of this Agreement during such Renewal Term shall be the same as the terms in effect immediately
prior to such renewal (including, but not limited to, the early termination provisions set forth in Article III, below), subject to any such changes or modifications as mutually may be agreed between the Parties as evidenced in a written instrument
signed by both the Bank and Employee. 
 1.2 Position and Duties. Employee shall be employed in the position of President and COO of the
Bank, and shall be subject to the authority of, and shall report to the CEO and the Board of Directors (Board) and/or other individual(s) as may be specified by the Board from time to time. Employee’s duties and responsibilities shall include
all those customarily attendant to the position of President of the Bank and such other duties and responsibilities as may be assigned from time to time by the Board. Employee shall devote Employee’s entire business time, attention and energies
exclusively to the business interests of the Bank while employed by the Bank except as otherwise specifically approved in writing by or on behalf of the Board. 
  

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 ARTICLE II 
 COMPENSATION AND OTHER BENEFITS 
 2.1 Base Salary. The Bank shall pay Employee an annual salary of Two
Hundred Seventy-five Thousand Dollars ($275,000.00) (“Base Salary”), payable in accordance with the normal payroll practices and schedule of the Bank. 
 2.2 Board Attendance. Employee will not receive additional compensation for attendance at Board meetings or Board committee meetings. 
 2.3 Additional Compensation. Beginning with the 2007 calendar year, Employee may be eligible to earn an annual (calendar year) performance-based bonus of up to but not greater than One Hundred Thousand Dollars
($100,000.00) for each full calendar year during which Employee is employed by the Bank (“Bonus Year”), the terms and conditions of which, as well as Employee’s entitlement thereto, shall be determined annually in the sole discretion
of the Board (“Performance Bonus”). Employee shall be eligible for a performance bonus for the balance of the 2006 calendar year in an amount up to $33,000 under the same conditions as described in the preceding sentence. 
 2.4 Benefit Plans. Employee will be eligible to participate in the Bank’s retirement plans that are qualified under Section 401(a) of the
Internal Revenue Code of 1986, as amended, and in the Bank’s welfare benefit plans that are generally applicable to all employees of the Bank, in accordance with the terms and conditions thereof. 
 2.6 Vehicle. After August 21, 2006, the Bank will purchase an automobile for Employee’s use (purchase price up to $40,000); personal miles
being allocated back to employee on no less than an annual basis. 
 2.7 Country Club. The Bank shall obtain for Employee a country club
membership in Employee’s name at a Green Bay or Door County, Wisconsin golf club in 2007. 
 2.8 Relocation Assistance. The Bank shall
provide relocation benefits for the Employee’s moving expenses, customary and reasonable realtor fees and closing costs (excluding real estate taxes) on sale of Employee’s residence in Pewaukee Wisconsin, and all customary and reasonable
closing costs associated with Employee’s purchase of a primary residence in the area from Green Bay, Wisconsin to Sister Bay, Wisconsin. The move shall be before June 30, 2008. 
 2.9 Expenses. The Bank shall reimburse Employee for all reasonable and necessary expenses incurred in the course of the performance of Employee’s
duties and responsibilities pursuant to this Agreement and consistent with the Bank’s policies with respect to travel, entertainment and miscellaneous expenses, and the requirements with respect to the reporting of such expenses. 
 2.10 Vacation. For the remainder of the 2006 calendar year, the Employee shall be entitled to a maximum of three (3) weeks of paid vacation;
provided, however, that such vacation time may not be carried over from year to year and that any vacation time that is unused at the conclusion of 2006 is forfeited by Employee. If Employee’s employment is terminated for whatever reason during
2006, Employee forfeits any vacation time that is unused as of Employee’s last date of employment. Beginning on January 1, 2007, the Employee will be eligible for an amount of vacation set forth in the Bank’s vacation policy, which is
applicable to all management employees, in accordance with the terms and conditions of such policy. 
  

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 2.11 Equity Plans or Programs. Employee may, during the term of this Agreement, be eligible to
participate in stock option, phantom stock, restricted stock or other similar equity-incentive plans or programs which the Bank may establish from time to time. The Board at its sole discretion shall establish the terms of any such plans or
programs, and Employee’s eligibility to participate in them. Employee will present a proposal to the Board for its consideration regarding the potential of annual eligibility of not less than 10,000 shares of Baylake Corp stock. Bank is also
willing to give consideration to a Rabbi Trust, SERP, or etc., the amount varying dependent on the size of the program established, to cover part or all of Employee’s compensation that does not qualify for Bank’s 401k plan. Bank will give
due consideration to the compensation study from State Financial Services Corporation, which is in Employee’s possession, if and when establishing any proposed plan and other long-term compensation benefits. 
 ARTICLE III 
 TERMINATION 
 3.1 Right to Terminate; Automatic Termination. 
 (a) Termination Without Cause. Subject to Section 3.2, the Bank may terminate Employee’s employment and all of the Bank’s obligations under this Agreement at any time and for any reason. 
 (b) Termination For Cause. Subject to Section 3.2, the Bank may terminate Employee’s employment and all of the Bank’s
obligations under this Agreement at any time for Cause (as defined below) by giving notice to Employee stating the basis for such termination, effective immediately upon giving such notice or at such other time thereafter as the Bank may designate.
“Cause” shall mean any of the following: (i) Employee has breached this Agreement or any other agreement to which Employee and the Bank are parties or has breached any other obligation or duty owed to the Bank; (ii) Employee has,
as determined solely by the Bank, participated in or been responsible (in whole or in part) for any violation of or default regarding any investment agreement or bank covenants to which the Bank is a party; (iii) Employee has committed
negligence, misconduct or any violation of law in the performance of Employee’s duties for the Bank; (iv) Employee has taken any action likely to result in discredit to or loss of business, reputation or goodwill of the Bank;
(v) Employee has failed to follow reasonable instructions from the Board, officer, body or other entity or individual to whom Employee reports concerning the operations or business of the Bank; (vi) Employee has committed a crime the
circumstances of which substantially relate to Employee’s employment duties with the Bank; (vii) Employee has misappropriated funds or property of the Bank; (viii) Employee has attempted to obtain a personal profit from any
transaction in which the Bank has an interest, and which constitutes a corporate opportunity of the Bank, or which is adverse to the interests of the Bank, unless the transaction was approved in writing by the Bank’s Board after full disclosure
of all details relating to such transaction. 
  

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 (c) Termination by Death or Disability. Subject to Section 3.2, Employee’s
employment and the Bank’s obligations under this Agreement shall terminate automatically, effective immediately and without any notice being necessary, upon Employee’s death or a determination of Disability of Employee. For purposes of
this Agreement, “Disability” means the inability of Employee, due to a physical or mental impairment, to perform the essential functions or job-related responsibilities of Employee’s job with the Bank, with or without a reasonable
accommodation. A determination of Disability shall be made by the Bank, which may, at its sole discretion, consult with a physician or physicians satisfactory to the Bank, and Employee shall cooperate with any efforts to make such determination. Any
such determination shall be conclusive and binding on the parties. Any determination of Disability under this Section 3.1(c) is not intended to alter any benefits any party may be entitled to receive under any long-term disability insurance
policy carried by either the Bank or Employee with respect to Employee, which benefits shall be governed solely by the terms of any such insurance policy. 
 (d) Termination by Resignation. Subject to Section 3.2, Employee’s employment and the Bank’s obligations under this Agreement shall terminate automatically, effective immediately upon Employee’s
provision of written notice to the Bank of Employee’s resignation from employment with the Bank or at such other time as may be mutually agreed between the Parties following the provision of such notice. 
 (e) Termination Arising From Bank Insolvency. Subject to Section 3.2, the Bank may terminate Employee’s employment and all of
the Bank’s obligations under this Agreement at any time as a result of (i) the Bank becoming insolvent or adjudicated bankrupt, (ii) the commencement or maintenance of proceedings related to the bankruptcy, liquidation or dissolution
of the Bank, or (iii) the Bank’s violation of or default regarding any investment agreement or bank covenants to which the Bank is a party by giving notice to Employee stating the basis for such termination, effective immediately upon
giving such notice or at such other time thereafter as the Bank may designate. 
 (f) Termination For Good Reason. Subject to
Section 3.2, the Employee may terminate Employee’s employment and all of the Bank’s obligations under this Agreement at any time for Good Reason (as defined below) by giving notice to the Bank stating the basis for such termination,
effective immediately upon giving such notice. “Good Reason” shall mean (i) any material breach of this Agreement by the Bank; (ii) other than for Cause, any material reduction in the nature or scope of Executive’s title,
authority, powers, functions, duties, reporting requirements or responsibilities as the President of the Bank; provided, however, that Good Reason shall not exist unless Employee first provides the Board with notice of the facts alleged to
constitute Good Reason and the provision of this Section 3.1(f) which Employee alleges applies, and until such breach, reduction or requirement remains uncured for 30 business days following the Board’s receipt of such written notice from
Employee. 
 3.2 Rights Upon Termination. 
 (a) Section 3.1(a) and (f) Terminations. If Employee’s employment is terminated pursuant to Section 3.1(a) or (f) hereof, Employee shall have no further rights against the Bank hereunder,
except for the right to receive (i) any unpaid Base Salary with 

  

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respect to the period prior to the effective date of termination, (ii) a Severance Payment (defined below), the payment of which is contingent upon
Employee’s execution of a written severance agreement (in a form satisfactory to the Bank) containing, among other things, a general release of claims against the Bank, and (iii) reimbursement of expenses to which Employee is entitled
under Section 2.5, above. For purposes of this Agreement, “Severance Payment” means three (3) months of Base Salary payable following termination in accordance with the normal payroll practices and schedule of the Bank.

 (b) Sections 1.1 and 3.1(b), (c), (d) and (e) Terminations. If Employee’s employment is terminated pursuant
to Sections 3.1(b), (c) or (e), if Employee resigns pursuant to Section 3.1(d), or if either the Bank or Employee fails to renew this Agreement pursuant to Section 1.1, Employee or Employee’s estate shall have no further rights
against the Bank hereunder, except for the right to receive (i) any unpaid Base Salary with respect to the period prior to the effective date of termination and (ii) reimbursement of expenses to which Employee is entitled under
Section 2.5, above. 
 ARTICLE IV 
 CONFIDENTIALITY; NON-COMPETITION 
 4.1. Confidentiality Obligations. During the term of Employee’s employment under this
Agreement, Employee will not directly or indirectly use or disclose any Confidential Information or Trade Secrets except in the interest and for the benefit of the Bank. After the termination, for whatever reason, of Employee’s employment with
the Bank, Employee will not directly or indirectly use or disclose any Trade Secrets unless such information ceases to be deemed a Trade Secret by means of one of the exceptions set forth in Section 4.4(c), below. For a period of two
(2) years following termination, for whatever reason, of Employee’s employment with the Bank, Employee will not directly or indirectly use or disclose any Confidential Information, unless such information ceases to be deemed Confidential
Information by means of one of the exceptions set forth in Section 4.4(c), below. 
 4.2 Restrictions on Competition. 
 (a) During Employment. During the term of Employee’s employment with the Bank, Employee shall not directly or indirectly compete
against the Bank, or directly or indirectly divert or attempt to divert Customers’ business from the Bank. 
 (b)
Following Employment. 
 (i) Non-Solicitation. For eighteen (18) months following termination, for whatever reason, of
Employee’s employment with the Bank, Employee agrees not to directly or indirectly solicit or attempt to solicit any business from any Restricted Customer in any manner which competes with the services or products offered by the Bank, or to
directly or indirectly divert or attempt to divert any Restricted Customer’s business from the Bank. 
  

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 (ii) Non-Competition. For eighteen (18) months following termination, for any
reason, of Employee’s employment with the Bank, Employee agrees not to provide services which are substantially similar to the services Employee provided to the Bank as an employee, agent, independent contractor or otherwise, to a “Venture
in Competition.” A “Venture in Competition” shall be defined as a bank, credit union or other entity which is in the business of lending money to individuals or businesses and which has a branch, office or place of business within a
100-mile radius of Sturgeon Bay, Wisconsin. 
 4.3 Assignment of Business Ideas. Employee shall immediately disclose to the Bank a list of
all inventions, patents, applications for patent, copyrights, and applications for copyright in which Employee currently holds an interest. The Bank will own, and Employee hereby assigns to the Bank, all rights in all Business Ideas. All Business
Ideas which are or form the basis for copyrightable works shall be considered “works for hire” as that term is defined by United States copyright law. Any works that are not found to be “works for hire” are hereby assigned to the
Bank. While employed by the Bank and for one (1) year thereafter, Employee will promptly disclose all Business Ideas to the Bank and execute all documents which the Bank may reasonably require to perfect its patent, copyright and other rights
to such Business Ideas throughout the world. After Employee’s employment with the Bank terminates, for whatever reason, Employee will cooperate with the Bank to assist the Bank in perfecting its rights to any Business Ideas including executing
all documents which the Bank may reasonably require. 
 4.4 Definitions. 
 (a) Trade Secret. The term “Trade Secret” shall have that meaning set forth under applicable law. This term is deemed by the
Bank to specifically include all computer source code created by or for the Bank and any confidential information received from a third party with whom the Bank has a binding agreement restricting disclosure of such confidential information.

 (b) Confidential Information. The term “Confidential Information” shall mean all non-Trade Secret or proprietary
information of the Bank which has value to the Bank and which is not known to the public or the Bank’s competitors, generally, including, but not limited to, new products, customer lists, pricing policies, employment records and policies,
operational methods, marketing plans and strategies, product development techniques and plans, business acquisition plans, rate information, loan information, financial information regarding the Bank and its customers, technical processes, designs,
inventions, research programs and results, and computer source code. 
 (c) Exclusions. Notwithstanding the foregoing, the
terms “Trade Secret” and “Confidential Information” shall not include, and the obligations set forth in this Agreement shall not apply to, any information which: (i) can be demonstrated by Employee to have been known by
Employee prior to Employee’s employment by the Bank; (ii) is or becomes generally available to the public through no act or omission of Employee; (iii) is obtained by Employee in good faith from a third party who discloses such
information to Employee on a non-confidential basis without violating any obligation of confidentiality or secrecy relating to the information disclosed; or (iv) is independently developed by Employee outside the scope of Employee’s
employment without use of Confidential Information or Trade Secrets. 
  

 6 

 (d) Business Ideas. The term “Business Ideas” as used in this Agreement means
all ideas, inventions, data, software, developments and copyrightable works, whether or not patentable or registrable, which Employee originates, discovers or develops, either alone or jointly with others while Employee is employed by the Bank and
for one (1) year thereafter and which are (i) related to any business known by Employee to be engaged in or contemplated by the Bank, (ii) originated, discovered or developed during Employee’s working hours, or
(iii) originated, discovered or developed in whole or in part using materials, labor, facilities, Confidential Information, Trade Secrets, or equipment furnished by the Bank. 
 (e) Customer. The term “Customer” shall mean any individual or entity for whom the Bank has provided services or products or
made a proposal to provide services or products. 
 (f) Restricted Customer. The term “Restricted Customer” shall
mean any individual or entity for whom/which the Bank provided services or products and with or about whom/which the Employee had direct contact on behalf of the Bank or acquired confidential information or trade secrets on behalf of the Bank during
the two (2) years preceding termination, for whatever reason, of Employee’s employment. 
 4.5 Return of Records. Upon termination,
for whatever reason, of employment or upon request by the Bank at any time, Employee shall immediately return to the Bank all documents, records, and materials belonging and/or relating to the Bank, and all copies of all such materials. Upon
termination, for whatever reason, of employment or upon request by the Bank at any time, Employee further agrees to destroy such records maintained by Employee on Employee’s own computer equipment. 
 4.6. Non-Solicitation of Employees. During the term of Employee’s employment with the Bank and for one (1) year thereafter, Employee shall not
directly or indirectly encourage any Bank employee to terminate his/her employment with the Bank or solicit such an individual for employment outside the Bank. 
 4.7 Employee Disclosures and Acknowledgments. 
 (a) Prior Obligations. There no are prior
obligations (written and oral), such as confidentiality agreements or covenants restricting future employment or consulting, that Employee has entered into which may restrict Employee’s ability to perform Employee’s duties as an Employee
for the Bank. 
 (b) Confidential Information of Others. Employee certifies that Employee has not, and will not, disclose or
use during Employee’s time as an employee of the Bank, any confidential information which Employee acquired as a result of any previous employment or under a contractual obligation of confidentiality or secrecy before Employee became an
employee of the Bank. 
 (c) Scope of Restrictions. By entering into this Agreement, Employee acknowledges the nature of the
Bank’s business and the nature and scope of the restrictions set forth in this Article IV, including specifically Wisconsin’s Uniform Trade Secrets Act, presently Section 134.90(1)(c), Wis. Stats. Employee acknowledges and represents
that the scope of the restrictions are appropriate, 

  

 7 

 
necessary and reasonable for the protection of the Bank’s business, goodwill, and property rights. Employee further acknowledges that the restrictions
imposed will not prevent Employee from earning a living in the event of, and after, termination, for whatever reason, of Employee’s employment with the Bank. Nothing herein shall be deemed to prevent Employee, after termination of
Employee’s employment with the Bank, from using general skills and knowledge gained while employed by the Bank. 
 (d)
Prospective Employers. Employee agrees, during the term of any restriction contained in this Article IV, to disclose this Agreement to any future or prospective employer. Employee further agrees that the Bank may send a copy of this Agreement to, or
otherwise make the provisions hereof known to, any such employer. 
 4.8 Effect of Termination. Notwithstanding any termination of this
Agreement, the Employee, in consideration of his employment hereunder, shall remain bound by the provisions of this Agreement which specifically relate to periods, activities or obligations upon or subsequent to the termination, for whatever reason,
of the Employee’s employment. 
 4.9 Effect of Breach. In the event that Employee breaches any provision of this Article IV, Employee
agrees that the Bank may suspend all additional payments to Employee under this Agreement, recover from Employee any damages suffered as a result of such breach and recover from Employee any reasonable attorneys’ fees or costs it incurs as a
result of such breach. In addition, Employee agrees that the Bank may seek injunctive or other equitable relief as a result of a breach by Employee of any provision of this Article IV. 
 ARTICLE V 
 GENERAL PROVISIONS 
 5.1 Notices. Any and all notices, consents, documents or communications provided for in this Agreement shall be given in writing and shall be personally
delivered, mailed by registered or certified mail (return receipt requested) or sent by courier, confirmed by receipt, and addressed as follows (or to such other address as the addressed party may have substituted by notice pursuant to this
Section 5.1): 
 (a) If to the Bank: 
 Chair of the Board of Directors 
 Baylake Bank 
 P O Box 9 
 Sturgeon Bay, WI 54235-0009

 (b) If to Employee: 
 Robert J. Cera 
 ___________________________ 
 ___________________________ 
 ___________________________ 
  

 8 

 Such notice, consent, document or communication shall be deemed given upon personal delivery or receipt at the address of
the party stated above or at any other address specified by such party to the other party in writing, except that if delivery is refused or cannot be made for any reason, then such notice shall be deemed given on the third day after it is sent.

 5.2 Entire Agreement. This Agreement contains the entire understanding and the full and complete agreement of the parties and supersedes
and replaces any prior understandings and agreements among the parties, with respect to the subject matter hereof. 
 5.3 Injunctive Relief.
The parties agree that damages will be an inadequate remedy for breaches of this Agreement and in addition to damages and any other available relief, a court shall be empowered to grant injunctive relief. 
 5.4 Headings. The headings of sections and paragraphs of this Agreement are for convenience of reference only and shall not control or affect the meaning
or construction of any of its provisions. 
 5.5 Consideration. Execution of this Agreement is a condition of Employee’s employment with
the Bank and Employee’s employment by the Bank, together with the benefits provided to the Employee herein, constitutes the consideration for Employee’s undertakings hereunder. 
 5.6 Amendment. This Agreement may be altered, amended or modified only in a writing, signed by both of the parties hereto. Headings included in this
Agreement are for convenience only and are not intended to limit or expand the rights of the parties hereto. References to Sections herein shall mean sections of the text of this Agreement, unless otherwise indicated. 
 5.7 Assignability. This Agreement and the rights and duties set forth herein may not be assigned by Employee, but may be assigned by the Bank, in whole
or in part. This Agreement shall be binding on and inure to the benefit of each party and such party’s respective heirs, legal representatives, successors and assigns. 
 5.8 Severability. If any court of competent jurisdiction determines that any provision of this Agreement is invalid or unenforceable, then such
invalidity or unenforceability shall have no effect on the other provisions hereof, which shall remain valid, binding and enforceable and in full force and effect, and such invalid or unenforceable provision shall be construed in a manner so as to
give the maximum valid and enforceable effect to the intent of the parties expressed therein. Nothing in this provision shall contemplate any blue-penciling prohibited under Wis. Stat. Section 103.465. The parties agree that paragraphs 4.1,
4.2(a), 4.2(b)(i), 4.2(b)(ii) and 4.3 contain separate restrictions and that the invalidity of one shall have no effect on the other restrictions. 
 5.9 Waiver of Breach. The waiver by either party of the breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach by either party. 
 5.10 Governing Law; Construction. This Agreement shall be governed by the internal laws of the State of Wisconsin, without regard to any rules of
construction concerning the draftsman hereof. 
  

 9 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year written above.

  

			
	BAYLAKE BANK:
		
	By:	 	/s/ T.L. Herlache
		 	T.L Herlache, Chief Executive Officer

  

	
	
	/s/ Robert J. Cera
	Robert J. Cera

  

 10

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