Document:

Thomas L. Herlacher Executive Employee Salary Continuation Agreement

 Exhibit 10.9 
 EXECUTIVE EMPLOYEE SALARY CONTINUATION AGREEMENT 
 FOR 
 THOMAS L. HERLACHE 
 THIS AGREEMENT is made this 1st
day of October 1999, between Baylake Bank, a Wisconsin corporation (the “Company”) and Thomas L. Herlache (the “Participant”). 
 WHEREAS, the Participant is an executive employee of the Company and as such has materially contributed to the Company’s position, and 
 WHEREAS the Company wishes to establish this Agreement for purposes of promoting in the Participant the strongest interest in the successful operation of the Company and increased efficiency in his work and to provide the Participant
benefits upon retirement, death, disability or other termination of employment, in consideration of services to be performed after the date of this agreement but prior to his retirement; and 
 WHEREAS, the Company also wishes to establish this Agreement to enhance its abilities to attract and retain highly qualified executives and to enable those executives to
perform their duties in the best interests of the Company and its shareholders in the event of possible or threatened Change in Control of the Company with undue concern regarding the personal, financial interests of such executives. 
 NOW THEREFORE, in consideration of the premises, the parties hereto agree as follows: 
 SECTION 1 
 DEFINITIONS 
  

	1.1	Salary and Compensation Committee – “Salary and Compensation Committee” shall mean the committee appointed pursuant to Section 5 of this Agreement.

  

	1.2	Age – “Age” shall mean the age of the person as of the date of his last birthday. 

	1.3	Change in Control – For purposes of this Agreement, a Change in Control of the Company shall have occurred (i) on the fifth day preceding the scheduled
expiration date of a tender offer by, or exchange offer by any corporation, person, other entity or group (other than the Company or any of its wholly owned subsidiaries), to acquire Voting Stock of the Company if (a) after giving effect to
such offer such corporation, person, other entity or group would own twenty five percent (25%) or more of the Voting Stock of the Company, (b) there shall have been filed documents with the Securities and Exchange Commission
(“SEC”) in connection therewith (or, if no such filing is required, public evidence that the offer has already commenced), and © such corporation, person, other entity or group has secured all regulatory approvals to own or control twenty five (25%) or more of the Voting
Stock of the Company, (ii) if the shareholders of the Company approve a definitive agreement to merge or consolidate the Company with or into another corporation in a transaction in which neither the Company nor any of its wholly owned
subsidiaries will be the surviving corporation, or to sell or otherwise dispose of all or substantially all of the Company’s assets to any corporation, person, other entity or group (other than the Company or any of its wholly owned
subsidiaries), and such definitive agreement is consummated; (iii) if any corporation, person, other entity or group (other than the Company or any of its wholly owned subsidiaries) becomes the Beneficial Owner of stock representing twenty five
percent (25%) of the Voting Stock of the Company, or (iv) if during any period of two (2) consecutive years Continuing Directors cease to comprise a majority of the Company’s Board of Directors. The term “Continuing
Director” means (i) any member of the Board of Directors of the Company who was a member of the Board of Directors of the Company at the beginning of any period of two (2) consecutive years, and (ii) any person who subsequently
becomes a member of the Board of Directors of the Company, if (a) such person’s nomination for election or election to the Board of Directors of the Company is recommended or approved by resolution of a majority of the Continuing
Directors, or (b) such person is included as a nominee in a proxy statement of the Company distributed when a majority of the Board of Directors of the Company consists of Continuing Directors, For purposes of this Agreement, “Voting
Stock” shall mean those shares of the Company entitled to vote generally in the election of directors. 

  

	1.4	Crediting Rate – “Crediting Rate” shall mean an annual rate of interest equal to 6.00%. 

  

	1.5	Disability – “Disability” shall mean, If the Participant is insured under the Company long-term disability policy, the definition of total disability
contained in the long-term disability insurance policy. If the Participant is not insured under such a policy, the board shall, in Its complete and sole discretion, determine whether the Participant is disabled for the purposes of this Agreement.

 [1.6 Discharge for Cause – “Discharge for Cause” shall mean the termination of the
Participant’s employment with the Company because of (a) the Participant’s willful and continued failure to substantially perform his duties (other than any such failure resulting from his incapacity due to physical or mental
illness), after a demand for substantial performance is delivered to him by the Company which specifically identifies the manner in which the Company believes he has not substantially performed his duties; (b) any willful act of misconduct by
the Participant which is materially injurious to the Company, monetarily or otherwise; © a criminal conviction of the Participant for any act involving the business and affairs of the Company; (d) a criminal conviction of the Participant for commission of a felony; or (e) the removal of
the Participant by a regulatory agency. For purposes of this definition, no act or failure to act on the Participant’s part will be considered “willful” unless done or omitted by him not in good faith and without reasonable belief
that his act or omission was in the best interest of the Company.] OR 
  

	1.6	Discharge for Cause – The Company may terminate the Participant’s employment under this Agreement for “Cause.” A termination for Cause is a
termination by reason of the Board’s good faith determination that the Participant (I) is incompetent or acted dishonestly or engaged in willful misconduct in the performance of his duties, (ii) breached a fiduciary duty to the
Company for personal profit to himself, (III) intentionally failed to perform reasonably assigned duties, (iv) willfully violated any law, rule or regulation (other than traffic violations or similar offenses) or any final cease and desist order, or
(v) materially breached this Agreement. No act, or failure to act, on the Participant’s part shall be considered “willful” unless he has acted, or failed to act, with an absence of good faith and without a reasonable belief that
his action or failure to act was in the best interest of the Company. Notwithstanding the foregoing, (I) the Participant shall not be deemed to have been terminated for Cause unless there shall have been delivered to the Participant a copy of a
resolution duly adopted by the affirmative vote of not less than a majority of the entire membership of the Board at a meeting of the Board called and held for the purpose (after reasonable notice to the Participant and an opportunity for the
Participant, together with his counsel, to be heard before the Board), finding that in the good faith opinion of the Board the Participant was guilty of conduct set forth above in the second sentence of this Section and specifying the particulars
thereof in detail, and (ii) in no event will the Participant be subject to termination for Cause pursuant to clause (v) above unless the Participant shall have failed to cure, correct or prevent the alleged breach within thirty days after
such resolution has been delivered to the Participant. 

  

	1.7	Early Retirement Date – “Early Retirement Date” shall mean the first day of the month following the month in which a Participant reaches age 60.

  

	1.8	Normal Retirement Date – “Normal Retirement Date” shall mean the first day of the month following the month in which a Participant reaches age 65.

  

	1.9	Termination of Employment – “Termination of Employment” shall mean the Participant’s ceasing to be employed by the Company for any reason
whatsoever, voluntary or involuntary, including by reason of death or disability. 

  

	 1.10
	 Vesting – For purposes of this Agreement and the vesting schedule attached as Schedule A, vesting
shall accrue to the Participant on a pro rata monthly basis beginning annually on each anniversary date of this Agreement. The Participant shall earn 1/12th of the annual vesting increased for each month of completed service during each year of this Agreement. Regardless of the number of years of service completed by the Participant, upon a Change in
Control, the Participant shall become 100% vested in all benefits under this Agreement. 

 SECTION 2 
 ELIGIBILITY 
 The Participant is eligible for
the benefits provided herein in accordance with the terms of this Agreement upon the execution hereof. 
 A Participant shall cease to be a Participant at
Termination of Employment However, the employment of a Participant shall not be deemed to be so terminated by reason of an approved leave of absence granted in accordance with uniform rules applied in a non-discriminatory manner. 
 SECTION 3 
 PAYMENT OF
BENEFITS 
  

	3.1	Benefits Upon Normal Retirement. 

 Upon a Participant’s
Termination of Employment on or after the Normal Retirement Date, the Company shall pay to the Participant the sum of $67.500 per year, payable in monthly installments of $5,625.00 each, commencing on the first day of the month
coincident with or next following date of Termination of Employment and continuing on the first day of each month thereafter for the life of the Participant but in any event until a minimum of 180 total monthly payments are made to the
Participant or the Participant’s beneficiary per Section 3.6(b). 

	3.2	Benefits Upon Early Retirement. 

 Upon a
Participant’s Termination of Employment on or after reaching the Early Retirement Date but prior to the Normal Retirement Date, the Company shall pay to the Participant, monthly payments equal to the benefit described in Schedule A, attached.
Such payments shall commence on the first day of the month coincident with or next following the date of Termination of Employment and shall continue on the first day of each month thereafter for a period of not less than fifteen years. 

The Participant may elect, on or before December 31 of the year prior to Termination of Employment, to defer commencement of payment of the early retirement
benefit to a date not later than the Normal Retirement Date. Such election shall be in writing and submitted to the Company. If a Participant elects to defer payment until his Normal Retirement Date, the Company shall pay to the Participant the
normal retirement benefit described in Section 3.1 above. If a Participant elects to defer payment of the benefit to a date prior to the Normal Retirement Date, the Company shall pay to the Participant a benefit calculated in accordance with
the first sentence of this Section 3.2, but using the date selected by the Participant for the commencement of this benefit as his “Termination of Employment” date instead of his actual termination date. 
  

	3.3	Benefits Upon Late Retirement. 

 Upon a
Participant’s Termination of Employment after the Normal Retirement Date, the Company shall pay to the Participant the normal retirement benefit described in Section 3.1 above, increased by 5% per year or .00416 for each month that
the Participant’s Termination of Employment is deferred beyond the Normal Retirement Date, in equal monthly installments commencing on the first day of the month coincident with or next following the date of Termination of Employment and
continuing on the first day of each month thereafter for the periods specified in Section 3.1 
  

	3.4	Benefits Upon Disability. 

 Upon a Participant’s
Termination of Employment prior to the Normal Retirement Date due to Disability, no separate provision is made for a disability benefit under this Agreement. However, any such Participant shall be considered, notwithstanding such Termination of
Employment, to continue to be a Participant while disabled and for so long as the disability continues prior to reaching the Early Retirement Date, such Participant’s beneficiary shall receive the survivor’s benefits described in
Section 3.6(a). In the event the Participant lives to the Early Retirement Date, the Participant shall be entitled to receive the early retirement benefit described in Section 3.2. 

	3.5	Other Terminations of Employment. 

  

	(a)	Voluntary Termination of Employment Prior to the Early Retirement Date or Discharge for Cause at any Time. Upon a Participant’s voluntary Termination of Employment prior
to reaching the Early Retirement Date, for reasons other than death or Disability, or upon the Participant’s Discharge for Cause at any time, the Company shall pay the vested benefit to the Participant pursuant to Schedule A attached to this
Agreement, and the Participant shall have no further right to receive any additional benefit hereunder. 

  

	(b)	Involuntary Termination of Employment Prior to the Early Retirement Date Other Than Because of Death, Disability or Discharge for Cause. Upon a Participant’s involuntary
Termination of Employment prior to reaching the Early Retirement, for reasons other than death, disability or discharge for cause, the Company shall pay to the Participant as compensation for services rendered prior to such Termination of
Employment, the vested “Immediate Annual Benefit” or the vested “Annual Benefit at Age 65” as defined in Schedule A, payable in monthly installments, commencing on the first day of the month coincident with or next following the
date of Termination of Employment, or Age 65 and continuing on the first day of each month thereafter for a period of fifteen years. For purposes of this subsection 3.5 (b), the Participant shall be deemed to have incurred an Involuntary Termination
of Employment covered by this subsection if he quits employment as a result of the Company’s significantly lessening either his title, duties, responsibilities, compensation or altering his status of employment, without his consent. His
compensation shall be deemed to be significantly lessened if any cutback is imposed except as a part of an overall cutback applied proportionately to all of the Company’s management employees or if the Participant fails to receive periodic
increases substantially proportionate to and coincident with the increase granted to management employees. 

  

	(c)	 Termination of Employment At or After a Change in Ownership of Control. If a Participant incurs a voluntary or involuntary Termination of Employment prior to
reaching the Early Retirement Date, for reasons other than death, disability, or discharge for cause, but on or after the occurrence of a Change in Control, and in connection with such change, the Participant’s title, duties, responsibilities,
or compensation is significantly lessened or his status of employment is changed, without his consent, the Company shall pay to the Participant as compensation for services rendered prior to such Termination of Employment, an amount equal to three
(3) years of the Participant’s then current annual salary, payable in monthly installments, commencing 

 
on the first day of the month coincident with or next following the date of Termination of Employment and continuing on the first day of each month
thereafter for a period of three (3) years, but in any event until a minimum of thirty-six (36) total monthly payments are made to the Participant or the Participant’s Beneficiary per Section 3.6(b), and the Immediate Annual
Benefit determined on Schedule A corresponding to the Participant’s age at the Date of Termination. Such Immediate Annual Benefit shall be paid in monthly installments in the manner provided in Section 3.1. 
  

	3.6	Survivorship Benefits. 

  

	(a)	Prior to Commencement of Normal or Early Retirement Benefits. If a Participant dies while in the service of the Company or after a Termination of Employment due to Disability
and while Disabled or after a Termination of Employment on or after the Early Retirement Date, but prior to commencement of any benefit payments under this Agreement, the Company shall pay to the Participant’s beneficiary a survivor’s
benefit of 180 equal monthly installments of $5,625 commencing on the first day of the month after the Participant’s death and continuing on the first day of each month thereafter until all such payments are completed. In the event a
beneficiary dies before receiving all the survivor’s benefit payments, the remaining payments shall be paid to the legal representatives of the beneficiary’s estate. Payment of the survivor’s benefit shall relieve the Company of the
obligation to pay any other benefit which the Participant would have otherwise received, under the terms of this Agreement. 

  

	(b)	After Commencement of Benefits. If a Participant dies after any benefit payments have commenced, but prior to receiving all of the scheduled minimum number of monthly
payments, the Company shall pay the remaining monthly payment to the Participant’s beneficiary. In the event a beneficiary dies before receiving all of the remaining payments, the remaining payments shall be paid to the legal representatives of
the beneficiary’s estate. 

  

	3.7	Recipients of Payments: Designation of Beneficiary. 

 All payments to be made by the Company shall be made to the Participant, if living. In the event of a Participant’s death prior to the receipt of all benefit payments, all subsequent payments to be made under this Agreement shall be to
the beneficiary or beneficiaries of the Participant. The Participant shall designate a beneficiary by filing a written notice of such designation with the Company in such form as the Company may prescribe. The Participant may revoke or modify said
designation at any time by a further written 
 designation. The Participant’s beneficiary designation shall be deemed automatically revoked in the event
of death of the beneficiary, 

 or if the beneficiary is the Participant’s spouse, in the event of dissolution of marriage. If no designation shall
be in effect at the time of any benefits payable under this Agreement shall become due, the beneficiary shall be the spouse of the Participant, or if no spouse is then living, the legal representatives of the Participant’s estate. 

 

	3.	Acceleration of Benefits. 

 At any time after the Participant
or the Participant’s beneficiary becomes entitled to a payment of benefits under this Agreement, the Participant, or the Participant’s beneficiary, may elect to accelerate the payment of benefits to the payment of a lump-sum payment. Such
payment shall equal ninety percent (90%) of the present value of the remaining payments payable assuming a discount rate equal to the Crediting Rate, and in the case of payments that are payable over the life of the Participant or the
Participant’s beneficiary, assuming the Mortality Assumptions. 
 SECTION 4 
 ADDITIONAL CHANGE IN CONTROL PROVISIONS 
  

	4.1	Application of Section. 

 If the Participant receives
payments under this Agreement that are contingent upon a Change in Control, as determined under Section 280G of the Internal Revenue Code of 1986 (the “Code”) and the regulations thereunder, then the provisions of this Section 4
shall apply. 
  

	4.2	Reduction of Payments. 

 If payments of benefits under this
Agreement, after taking into account all other payments or benefits to which the Participant is entitled from the Company, are expected to result in an excise tax on the Officer or the loss of certain tax deductions by the Company by reason of
Sections 280G and 4999 of the Internal Revenue Code of 1986 or any successor provisions to those Sections, payments under this Agreement shall be reduced by the least amount required to avoid such excise tax and loss of deductions unless the failure
to reduce such salary payments would be financially beneficial to the Participant. The failure to reduce such salary payments will be financially beneficial to the Participant if it results in an after-tax value to the Participant of all payments
and benefits referenced in the preceding sentence, despite the application of the excise tax and income tax, which value is greater than the after-tax value the Participant would realize if salary payments were reduced to avoid the application of
the excise tax.) OR 
  

	Limit	on Payments. 

 If payments or benefits under this Agreement,
after taking into account all other payments or benefits to which the Participant is entitled from the Company, are expected to result in an excise tax on the Participant or the loss of certain tax deductions by the Company by reason of Code
Section 280G and 4999, then payments under this Agreement shall be reduced to an amount such that all payments to the Participant from the Company, which are considered contingent upon the Change in Control, shall not exceed 2.99 times the
Participant’s Base Amount as defined in Code Section 280G.) 
  

	4.3	Determination by Experts. 

 If the Participant and the
Company shall disagree as to whether a payment under this Agreement could result in the loss of a deduction, the matter shall be resolved by an opinion of (the Company’s Law Firm), or if (Company’s Law Firm) is unable to provide such
opinion, counsel selected by the Company, and agreed to by the Officer. Counsel’s opinion need not be unqualified. Counsel’s opinion shall be based on determinations of the Base Amount and Excess Parachute Payments (if applicable), as such
terms are defined by Section 280G of the Code or its successor, by (Consulting Firm), or if (Consulting Firm) is unable to make such determinations, a consulting firm chosen by the Company and agreed to by the Officer. The Company shall pay the
fees and expenses of such counsel and consulting firm, and shall make available such information as may be reasonably requested by such counsel and consulting firm to prepare the opinion. If the maximum amount payable to the Officer pursuant to this
Section cannot be determined prior to the due date for such payment, the Company shall pay on the due date the minimum amount which it in good faith determines to be payable, and shall pay the remaining amount as soon as practicable after such
remaining amount is determined. 
 SECTION 5  
 ADMINISTRATION AND INTERPRETATION OF THIS AGREEMENT 
 The Board of Directors shall appoint a Personnel and
Compensation Committee consisting of three (3) or more persons to administer and interpret this Agreement. Interpretation by the Personnel and Compensation Committee shall be final and binding upon a Participant. The Personnel and Compensation
Committee may adopt rules and regulations relating to this Agreement as it may deem necessary or advisable for the administration thereof. 

 SECTION 6 
 CLAIMS PROCEDURE 
 If the Participant or the Participant’s beneficiary (hereinafter referred to as a
“Claimant”) is denied all or a portion of an expected benefit under this Plan for any reason, he or she may file a claim with the Personnel and Compensation Committee. The Personnel and Compensation Committee shall notify the Claimant
within sixty (60) days of allowance or denial of the claim, unless the Claimant receives written notice from the Personnel and Compensation Committee prior to the end of the sixty (60) day period stating that special circumstances requires
an extension of the time for decision. The notice of the Personnel and Compensation Committee’s decision shall be in writing, sent by mail to Claimant’s last known address, and If a denial of the claim, must contain the following
information: 
  

	 	(a)	the specific reasons for the denial: 

  

	 	(b)	specific reference to pertinent provisions of the Plan on which the denial is based; and 

  

	 	(c)	if applicable, a description of any additional information or material necessary to perfect the claim, an explanation of why such information or material is necessary, and an
explanation of the claims review procedure. 

 SECTION 7  
 REVIEW PROCEDURE 
  

	7.1	A Claimant is entitled to request a review of any denial of his claim by the Personnel and Compensation Committee. The request for review must be submitted in writing within a sixty
(60) day period, the claim will be deemed to be conclusively denied. The Claimant or his representative shall be entitled to review all pertinent documents, and to submit issues and comments orally and in writing. 

  

	7.2	If the request for review by a Claimant concerns the interpretation and application of the provisions of the Agreement and the Company’s obligations, then the review shall be
conducted by a separate committee consisting of three persons designated or appointed by the Personnel and Compensation Committee. The separate committee shall afford the Claimant a hearing and the opportunity to review all pertinent documents and
submit issues and comments orally and in writing and shall render a review decision in writing, all within sixty (60) days after receipt of a request for a review, provided that, in special circumstances (such as the necessity of holding a
hearing) the committee may extend the time for decision by not more than sixty (60) days upon written notice to the Claimant. The Claimant shall receive written notice of the separate committee’s review decision, together with specific
reasons for the decision and reference to the pertinent provisions of this Agreement. 

 SECTION 8  
 LIFE INSURANCE AND FUNDING 
 The Company in its discretion may 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 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. 
 The rights of the Participant, or his beneficiary, or estate, to benefits under the Plan shall be solely those of an unsecured creditor of the Company. Any insurance policy or other assets acquired by or held by the
Company in connection with the liabilities assumed by it pursuant to the Plan shall not be deemed to be held under any trust for the benefit of the Participant, his beneficiary, or his estate, or be security for the performance of the obligations
for the Company but shall be, in remain, a general, unpledged, and unrestricted asset of the Company. 
 If this Agreement is funded through insurance on the
life of the Participant, then in the event of such Participant’s death during the first two (2) years after the effective date of this Agreement, and if such Participant’s death was a result of suicide or if such Participant made any
material misstatement or failed to make a material disclosure of information in any documentation which the Participant is requested to complete in connection with this Agreement, then no death benefits under the terms of this Agreement will be
payable, unless and to the extent that the Board of Directors of Company, in their absolute discretion, may otherwise determine. 
 SECTION
9  
 ASSIGNMENT OF BENEFITS 
 Neither the Participant nor any other beneficiary under the Plan shall have any right to assign the right to receive any benefits hereunder, and in the event of any attempted assignment or transfer, the Company shall no further liability
hereunder. 
  

 SECTION 10  
 EMPLOYMENT NOT GUARANTEED BY AGREEMENT 
 Neither this Agreement nor any action taken hereunder shall be
construed as giving the Participant the right to be retained as an Executive Employee or as an employee of the Company for any period. 
 SECTION 11  
 TAXES 
 The Company shall deduct from all payments made hereunder all applicable federal or state taxes required by law to be withheld from such payments. 
 SECTION 12  
 AMENDMENT AND TERMINATION 
 The Board of Directors may, at any time, amend or terminate this Agreement, provided that the Board may not reduce or modify any benefit in pay status to the Participant
or beneficiary hereunder or any benefit that would become payable hereunder if the Participant were to have died or were to have been involuntarily terminated under Section 3.5(b) hereof on the day prior to such action by the Board, without
prior written consent of the Participant. 
 The Company is entering into this Agreement upon the assumption that certain existing tax laws will continue in
effect in substantially their current form. In the event of any changes in Federal law relating to and allowing the tax-free accumulation of earnings within a life insurance policy, the income tax-free payment of proceeds from life insurance
policies or any other law which would result in a material adverse impact upon the Company’s ability to perform its obligations under this Agreement, the Company shall have an option to terminate or modify this Agreement subject to the
protection afforded Participant’s in the preceding paragraph above. 
 SECTION 13  
 CONSTRUCTION 
 This Agreement shall be
construed according to the laws of the State of Wisconsin. 
  

 SECTION 14  
 FORM AND COMMUNICATION 
 Any election, application, claim, notice or other communication required or permitted
to be made by the Participant to the Company shall be made in writing and in such form as the Company shall prescribe. Such communication shall be effective upon mailing, if sent by first-class mail, postage prepaid, and addressed to the
Company’s office at 217 North Fourth Avenue; Sturgeon Bay, Wl 54235-0009. 
 SECTION 15  
 CAPTIONS 
 The captions at the head of a
section or a paragraph of this Agreement are designed for convenience of reference only and are not to be resorted to for the purpose of interpreting any provision of this Agreement. 
 SECTION 16  
 SEVERABILITY 
 The invalidity of any portion of this Agreement shall not invalidate the remainder thereof, and said remainder shall continue in full force and effect. 
 SECTION 17  
 BINDING
EFFECT 
 This Agreement shall be binding upon and shall inure to the benefit of the Company and the Participant, and each of their successors,
heirs, personal representatives and permitted assigns. No sale of substantially all. of the Company’s assets shall be made without the buyer expressly assuming the obligation of this Agreement. The Company further agrees that it will not be a
party to any merger, consolidation or reorganization unless and until its obligations hereunder are expressly assumed by the successor or successors. 
 IN
WITNESS WHEREOF, this Agreement has been executed by the parties as of the date first set forth above. 
  

			
	 By:
	 	 /s/ Kevin LaLuzerne

	 Its:
	 	Controller
	 /s/ T.L. Herlache

	 ParticipantRestricted Stock Unit Agreement dated effective September 26, 2006

 Exhibit 10.25 
 RESTRICTED STOCK UNIT AGREEMENT 
 This Restricted Stock Unit Agreement (this “Agreement”)
is made and entered into as of the Grant Date indicated below pursuant to the terms of the 2006 Equity Incentive Plan (the “Plan”) of AmericanWest Bancorporation (the “Company”) by and between the Company and the person named
below as the Participant. 
  

			
	 The “Participant”
	  	Patrick J. Rusnak
		
	 Number of Restricted Stock Units (“Units”)
	  	15,000
		
	 “Grant Date”
	  	September 26, 2006
		
	 “Settlement Date”
	  	September 17, 2011
		  	(subject to vesting)
		
	 “Measurement Dates”
	  	Jan. 1, 2008, 2009, 2010 and 2011

 The Company hereby awards to the Participant and the Participant accepts the right to receive
shares of the Company’s Common Stock (“Stock”) on the Settlement Date to the extent Units are vested in accordance with the terms hereof. This Award (“Award”) is being made as part of the Participant’s compensation
package without the payment of any consideration other than the Participant’s services as an employee. This Agreement satisfies and supersedes the provisions in the Participant’s employment agreement with the Company with respect to the
initial grant of Performance Shares. 
 The terms and conditions of this Award are set forth on the following pages of this Agreement subject
to the terms and conditions of the Plan. 
  

							
	AMERICANWEST BANCORPORATION	 		 	PARTICIPANT:
				
	 By:
	 	 /s/ Robert M. Daugherty
  
	 		 	 /s/ Patrick J. Rusnak
  

		 	 Robert M. Daugherty, President & CEO
	 		 	Patrick J. Rusnak

  

					
	Restricted Stock Unit Agreement	  	Page 1 of 7	  	

 Restricted Stock Unit Award 
 Terms and Conditions 
  

	1.	Definitions 

 Unless otherwise defined
herein, capitalized terms used in this Agreement shall have the meanings as defined in the Plan. 
 1.1. “Agreement” shall
have the meaning given on page 1 hereof. 
 1.2. “Award” means this Restricted Stock Unit Award. 
 1.3. “Cause” means the definition of “Cause” given in any employment agreement the Participant has with the Company or a
Subsidiary or, if no such definition exists, the occurrence of any one or more of the following: 
 (a) Participant’s willful misfeasance
or gross negligence in the performance of Participant’s duties; 
 (b) Participant’s conviction of a crime in connection with
Participant’s duties; 
 (c) Participant’s conduct that is demonstrably and significantly harmful to the Company or a Subsidiary as
reasonably determined by the Board of Directors on advice from legal counsel; or 
 (d) Participant cannot qualify for a fidelity bond issued
by a surety company in an amount acceptable to the Company. 
 1.4. “Company” means AmericanWest Bancorporation. 

1.5. “Grant Date” means the date of the grant of the Award, as specified on page 1 hereof. 
 1.6. “Good Reason” means the definition of “Good Reason” given in any employment agreement the Participant has with the
Company or, if no definition is so given, there shall be no circumstances giving rise to Good Reason under this Agreement. 
 1.7.
“Measurement Dates” means the dates set forth on page 1 hereof. 
 1.8. “Participant” means the individual
identified as such on page 1 hereof. 
 1.9. “Plan” shall have the meaning given on page 1 hereof. 
 1.10. “Return on Average Assets” has the meaning given under Generally Accepted Accounting Principals (GAAP). 
 1.11. “Settlement Date” has the meaning given on page 1 hereof. 
 1.12. “Stock” means the Common Stock, no par value, of the Company, and of any successor entity. 
 1.13. “Subsidiary” has the meaning given in the Plan. 
 1.14. “Units” means the Restricted Stock Units awarded under this Agreement. 
  

					
	Restricted Stock Unit Agreement	  	Page 2 of 7	  	

	2.	Vesting and Forfeiture of Award Shares 

 2.1.
Vesting Date. The Units shall vest on the Settlement Date, provided the Participant has been continuously employed by the Company or a Subsidiary through the Settlement Date. Participant will be deemed continuously employed notwithstanding
any unpaid leaves of absence if such leave of absence is in accordance with the Company’s or Subsidiary’s sick leave, family leave or military leave policies or that otherwise is with the prior written approval of the Company or a
Subsidiary and such leave continues only for so long as the Company or Subsidiary has agreed and occurs only in accordance with the terms and conditions as have been required by the Company or Subsidiary, in each instance as determined by the
Company or Subsidiary in its sole discretion; or 
 2.2. Accelerated Vesting. As an alternative to vesting under Section 2.1
above, in the event the Participant ceases to be employed by the Company or a Subsidiary (or a successor entity within two (2) years following a “change of control,” as defined in Section 20 of the Plan) due to termination by the
employer without Cause or by the Participant for Good Reason, the Award shall vest as of the date of such termination of employment to the extent Units have not been forfeited under Section 2.3 below. 
 2.3. Performance Based Forfeiture. Twenty percent (20%) of the Units shall be forfeited as of each of the Measurement Dates, and therefore
ineligible for subsequent vesting, if during the calendar year immediately preceding the respective Measurement Date, the Company had a Return on Average Assets of less than one percent (1%). The determination of whether a forfeiture under this
Section 2.3 has occurred will be made based upon the Company’s audited financial statements for the applicable year. 
  

	3.	Settlement of Award and Issuance of Share Certificates 

 3.1. Issuance of Shares of Stock. If Units have vested pursuant to either Section 2.1 or 2.2 above, the Company shall issue to the Participant, as soon as practicable following the Settlement Date,
and upon payment of all required tax withholding pursuant to Section 4 hereof, a number of whole shares of Stock equal to the number of Units that have vested. Such shares of Stock shall not be subject to any restriction on transfer other than
any such restriction as may be required pursuant to Section 3.4 or any applicable law, rule or regulation. 
 3.2. No Additional
Payment Required. The Participant shall not be required to make any additional payment of consideration upon settlement of the Award. 
 3.3. Stock Certificate. The certificate for the shares of Stock as to which the Award is settled shall be registered in the name of the Participant or, if applicable, in the names of the heirs of the Participant. The Company may
at any time place legends referencing any applicable restrictions on all certificates representing shares of Stock issued upon settlement of the Award. 
 3.4. Restrictions on Grant of the Award and Issuance of Shares. The grant of the Award and issuance of shares of Stock upon settlement of the Award shall be subject to compliance with all applicable
requirements of federal and state securities laws. No shares of Stock may be issued hereunder if the issuance of such shares would constitute a violation of any applicable federal, state or foreign securities laws or other law or regulation or the
requirements of any stock exchange or market system upon which the Stock may then be listed. The inability of the Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Company’s legal counsel to be
necessary to the lawful issuance and sale of any shares subject to the Award shall relieve the Company of any liability in respect of the failure to issue or sell such shares as to which such requisite authority shall not have been obtained. As a
condition to the settlement of the Award, the Company may require the Participant to satisfy any qualifications that may be necessary or appropriate, to evidence compliance with any applicable law or regulation and to make any representation or
warranty with respect thereto as may be requested by the Company. 
  

					
	Restricted Stock Unit Agreement	  	Page 3 of 7	  	

 3.5. Fractional Shares. The Company shall not be required to issue fractional shares upon the
settlement of the Award. 
  

	4.	Payment of Tax Withholding Amounts 

 4.1.
Tax Withholding. At the time the Award is settled, the Participant will be required to remit to the Company an amount sufficient to satisfy federal, state and local taxes and FICA withholding requirements prior to the delivery of any
certificate or certificates for the Stock. The Participant hereby authorizes withholding from payroll and any other amounts payable to the Participant, and otherwise agrees to make adequate provision for, any sums required to satisfy such tax
withholding obligations of the Company. 
 4.2. Alternative Provisions for the Payment of Tax Withholding Amounts. The Administrator
may, in its sole discretion and upon such terms and conditions as it may deem appropriate, permit Participant to satisfy his or her obligation to pay such withholding tax, in whole or in part, with shares of the Stock (provided, however, that to the
extent required by applicable tax, securities and other laws and applicable accounting rules, the shares have been held by Participant for at least six (6) months) up to an amount not greater than the Company’s minimum statutory
withholding rate for federal and state tax purposes, including payroll taxes, that are applicable to such supplemental taxable income. If the Administrator permits the payment of withholding taxes through an exchange of Stock, Participant either may
(1) deliver stock certificates of Stock that Participant has held at least six months, which are duly endorsed for cancellation of that number of shares that have a fair market value equal to the tax withholding amount, less any cash payment
Participant makes, or (2) deliver an affidavit of attesting to Participant’s ownership of shares of Stock that he or she has held for at least six months, and the new certificate issued for the shares granted under this Agreement would
represent such shares of Stock reduced by that number of shares that have a fair market value equal to the tax withholding amount, less any cash payment Participant makes. 
  

	5.	Restrictions on Transfer 

 Prior to the
Settlement Date, neither this Award nor any Unit shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or garnishment by creditors of the Participant or the Participant’s beneficiary, except
by will or by the laws of descent and distribution. 
  

	6.	Adjustment of Units 

 In the event of any
change to the Stock of the Company as described in Section 4.2 of the Plan, the number of Units shall be adjusted in accordance with Section 4.2 of the Plan. 
  

	7.	Representations, Warranties and Covenants of the Participant 

 7.1. No Shareholder Rights. The Participant shall have no rights as a shareholder with respect to any shares which may be issued in settlement of this Award until the date of the issuance of a certificate for
such shares (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company). 
  

					
	Restricted Stock Unit Agreement	  	Page 4 of 7	  	

 7.2. No Right to Continued Service. The Participant understands and agrees that nothing contained
in this Agreement will be construed to limit or restrict the rights of the Company or of any Subsidiary of the Company to terminate the employment of the Participant at any time, with or without cause, to change the duties of the Participant or to
increase or decrease the Participant’s compensation. Without limiting the foregoing, the Participant understands and agrees that, except as otherwise provided in Section 2.2, the vesting of Units under this Agreement is directly
conditioned upon the Participant continuing to be employed by the Company or a Subsidiary of the Company through the Settlement Date and that the Participant’s relationship with the Company or a Subsidiary of the Company can be terminated at
any time with or without notice to the Participant. 
 7.3. Tax Treatment. The Company has advised the Participant to seek the
Participant’s own tax and financial advice with regard to the federal and state tax considerations resulting from the Participant’s receipt of the Units or Stock pursuant to this Award. The Participant understands that the Company will
report to appropriate taxing authorities the payment to the Participant of compensation income upon settlement of the Award. The Participant understands that he or she is solely responsible for the payment of all federal and state taxes resulting
from this Award and the issuance of the Stock. 
 7.4. Disclosures. The Participant acknowledges receipt of a copy of the Plan and
represents that the Participant has fully reviewed the terms and conditions of the Plan and this Agreement and has had an opportunity to obtain the advice of counsel prior to executing this Agreement. The Participant represents and warrants that the
Participant is not relying upon any representations, agreements or understandings of or with the Company except for those set forth in this Agreement. 
  

	8.	Miscellaneous Provisions 

 8.1. Binding
Effect. This Agreement will be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. The rights and obligations of the Company under this Agreement may be assigned without prior notice
to or the consent of the Participant. The rights and obligations of the Participant under this Agreement may not be assigned by the Participant except as may be permitted by Section 5 of this Agreement. 
 8.2. Amendment and Waiver. This Agreement may be amended, modified and supplemented only by written agreement signed by both the Participant and
an authorized officer of the Company. No waiver of any provision of this Agreement or any rights or obligations of any party hereunder shall be effective, except pursuant to a written instrument signed by the party or parties waiving compliance, and
any such waiver shall be effective only in the specific instance and for the specific purpose stated in such writing. 
 8.3. Notices.
All notices or other communications pursuant to this Agreement shall be in writing and shall be deemed duly given if delivered personally or by courier service, or if mailed by certified mail, return receipt requested, prepaid and addressed to the
Company’s executive offices to the attention of the Corporate Secretary, or, if to the Participant, to the address maintained by the personnel department of Participant’s employer, or such other address as such party shall have furnished
to the other party in writing. 
 8.4. Governing Law and Interpretation. This Agreement will be governed by the laws of the State of
Washington as to all matters, including but not limited to matters of validity, construction, effect and performance, without giving effect to rules of choice of law. This Agreement hereby incorporates by reference all of the provisions of the Plan
and will in all respects be interpreted and construed in such manner as to effectuate the terms and intent of the Plan. In the event of a conflict between the terms of this Agreement and the Plan, the terms of the Plan will prevail. All matters of
interpretation of the Plan and this Agreement, including the applicable terms and conditions and the definitions of the words, will be determined at the sole and final discretion of the Administrator or the Company’s Board of Directors.

  

					
	Restricted Stock Unit Agreement	  	Page 5 of 7	  	

 8.5. IRC Section 409A Compliance. Notwithstanding any other provision of Agreement, it is
intended that any deferred compensation benefit which is provided pursuant to or in connection with this Agreement shall be provided and issued in a manner, and at such time and in such form, as complies with the applicable requirements of
Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) to avoid the unfavorable tax consequences provided therein for non-compliance. Any provision in this Agreement that is determined to violate the requirements
of Section 409A shall be void and without effect. To the extent permitted under Section 409A, the parties shall reform any such provision, provided such reformation shall not subject the Participant to additional tax or interest and the
Company shall not be required to incur any additional expense as a result of the reformation. In addition, any provision that is required to appear in this Agreement that is not expressly set forth shall be deemed to be set forth herein, and this
Agreement shall be administered in all respects as if such provision were expressly set forth. References in this Agreement to Section 409A of the Code include rules, regulations and guidance of general application issued by the Department of
the Treasury under Internal Revenue Code Section 409A. 
 8.6. IRC 280G Adjustment. If the benefit payments under this Agreement,
either alone or together with other payments to which the Participant is entitled to receive from the Company, would constitute an “excess parachute payment” as defined in Section 280G of the Code, such benefit payments shall be
reduced to the largest amount that will result in no portion of benefit payments under this Agreement being subject to the excise tax imposed by Section 4999 of the Code. The determination of which benefits to reduce shall be made by the
Participant, provided the Company’s accountants confirm that such reduction satisfies the requirements of this Section. 
 8.7.
Attorney Fees. If any suit, action or proceeding is instituted in connection with any controversy arising out of this Agreement or the enforcement of any right hereunder, the prevailing party will be entitled to recover, in addition to costs,
such sums as the court or arbitrator may adjudge reasonable as attorney fees, including fees on any appeal. 
 8.8. Arbitration. All
claims, disputes and other matters in question arising out of or relating to this Agreement or the breach or interpretation thereof, other than those matters which are to be determined by the Administrator or the Company’s Board of Directors in
its sole and absolute discretion, shall be resolved by binding arbitration before a representative member, selected by the mutual agreement of the parties, of the Judicial Arbitration and Mediation Services, Inc. (“JAMS”), located in
Spokane, Washington. In the event JAMS is unable or unwilling to conduct the arbitration provided for under the terms of this paragraph or has discontinued its business, the parties agree that a representative member, selected by the mutual
agreement of the parties, of the American Arbitration Association (“AAA”) located in Spokane, Washington, shall conduct the binding arbitration referred to in this paragraph. Notice of the demand for arbitration shall be filed in writing
with the other party to this Agreement and with JAMS (or AAA, if necessary). In no event shall the demand for arbitration be made after the date when institution of legal or equitable proceedings based on such claim, dispute or other matter in
question would be barred by the applicable statute of limitations. The arbitration shall be subject to such rules of procedure used or established by JAMS or, if there are none, the rules of procedure used or established by AAA. Any award rendered
by JAMS or AAA shall be final and binding upon the parties and, as applicable, their respective heirs, beneficiaries, legal representatives, agents, successors and assigns, and may be entered in any court having jurisdiction thereof. The obligation
of the parties to arbitrate pursuant to this clause shall be specifically enforceable in accordance with, and shall be conducted consistently with, the civil procedure provisions of the Revised Code of Washington. Any arbitration hereunder shall be
conducted in Spokane, Washington, unless otherwise agreed to by the parties. 
  

					
	Restricted Stock Unit Agreement	  	Page 6 of 7	  	

 8.9. Entire Agreement. This Agreement and the Plan embody the entire agreement and understanding
of the parties hereto in respect to the subject matter contained herein and supersedes all prior written or oral communications or agreements all of which are merged herein. There are no restrictions, promises, warranties, covenants or undertakings
other than those expressly set forth or referred to herein. 
  

					
	Restricted Stock Unit Agreement	  	Page 7 of 7

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