Exhibit 10.2

 

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Principal Life Insurance Company

Raleigh, NC 27612

1-800-999-4031

A member of the Principal Financial Group®

  

THE EXECUTIVE

NONQUALIFIED “EXCESS” PLANSM

ADOPTION AGREEMENT

THIS AGREEMENT is the adoption by QC Holdings, Inc. (the “Employer”) of the
Executive Nonqualified Excess Plan (“Plan”).

WITNESSETH:

WHEREAS, the Employer desires to adopt the Plan as an unfunded, nonqualified
deferred compensation plan; and

WHEREAS, the provisions of the Plan are intended to comply with the requirements
of Section 409A of the Code and the regulations thereunder, and shall apply to
amounts deferred after January 1, 2005, and to amounts deferred under the terms
of any predecessor plan which are not earned and vested before January 1, 2005;
and

WHEREAS, the Employer has been advised by Principal Life Insurance Company to
obtain legal and tax advice from its professional advisors before adopting the
Plan, and Principal Life Insurance Company disclaims all liability for the legal
and tax consequences which result from the elections made by the Employer in
this Adoption Agreement;

NOW, THEREFORE, the Employer hereby adopts the Plan in accordance with the terms
and conditions set forth in this Adoption Agreement:

ARTICLE I

Terms used in this Adoption Agreement shall have the same meaning as in the
Plan, unless some other meaning is expressly herein set forth. The Employer
hereby represents and warrants that the Plan has been adopted by the Employer
upon proper authorization and the Employer hereby elects to adopt the Plan for
the benefit of its Participants as referred to in the Plan. By the execution of
this Adoption Agreement, the Employer hereby agrees to be bound by the terms of
the Plan.

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ARTICLE II

The Employer hereby makes the following designations or elections for the
purpose of the Plan:

2.6 Committee: The duties of the Committee set forth in the Plan shall be
satisfied by:

 

___

   (a)    The administrative committee of at least three individuals appointed
by the Board to serve at the pleasure of the Board.      

XX

   (b)    Employer.      

___

   (c)    Other (specify):

2.7 Compensation: The “Compensation” of a Participant shall mean all of a
Participant’s:

 

XX

   (a)    Base salary.

XX

   (b)    Service Bonus.

XX

   (c)    Performance-Based Compensation earned in a period of 12 months or
more.

___

   (d)    Commissions.

XX

   (e)    Compensation received as an Independent Contractor reportable on Form
1099.

___

   (f)    Employer Contributions Only.

2.8 Crediting Date: The Deferred Compensation Account of a Participant shall be
credited with the amount of any Participant Deferral to such account at the time
designated below:

 

___

   (a)    The last business day of each Plan Year.

___

   (b)    The last business day of each calendar quarter during the Plan Year.

___

   (c)    The last business day of each month during the Plan Year.

___

   (d)    The last business day of each payroll period during the Plan Year.

___

   (e)    Each pay day as reported by the Employer.

XX

   (f)    Any business day on which the Participant Deferral is received by the
      Provider.

___

   (g)    Other: ______________________________________________.

 

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2.12 Effective Date:

 

XX

   (a)    This is a newly-established Plan, and the Effective Date of the Plan
is May 1st, 2007.

___

   (b)    This is an amendment and restatement of a plan named      
_______________________________ with an effective date of ____________.      
The Effective Date of this amended and restated Plan is _____________.      
This is amendment number ___.

2.18 Normal Retirement Age: The Normal Retirement Age of a Participant shall be:

 

___

   (a)    Age ___.

XX

   (b)    The later of age 55 or the 10th anniversary of the participation
commencement date. The participation commencement date is the first day of the
first Plan Year in which the Participant commenced participation in the Plan.

___

   (c)    Other: _______________________________________________.

2.22 Participating Employer(s): As of the Effective Date, the following
Participating Employer(s) are parties to the Plan:

 

Name of Employer

  

Address

   Telephone No.    EIN

QC Holdings, Inc.

  

9401 Indian Creek Parkway,

Suite 1500

   (913) 234-5000    43-1326315    Overland Park, KS 66210      

QC Financial Services of California, Inc.

  

9401 Indian Creek Parkway,

Suite 1500

   (913) 234-5000    74-2930338    Overland Park, KS 66210      

QC Financial Services of Texas, Inc.

  

9401 Indian Creek Parkway,

Suite 1500

   (913) 234-5000    20-3412650    Overland Park, KS 66210      

Express Check Advance of South

Carolina LLC

  

9401 Indian Creek Parkway,

Suite 1500

   (913) 234-5000    62-1870097    Overland Park, KS 66210      

 

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2.24 Plan: The name of the Plan as applied to the Employer is

The Executive Nonqualified Excess Plan of QC Holdings, Inc.

2.25 Plan Administrator: The Plan Administrator shall be:

 

___

   (a)    Committee.

XX

   (b)    Employer.

___

   (c)    Other: _________________________________________________.

2.27 Plan Year: The Plan Year shall end each year on the last day of the month
of December.

2.35 Trust:

 

XX

   (a)    The Employer does desire to establish a “rabbi” trust for the purpose
of setting aside assets of the Employer contributed thereto for the payment of
benefits under the Plan.

___

   (b)    The Employer does not desire to establish a “rabbi” trust for the
purpose of setting aside assets of the Employer contributed thereto for the
payment of benefits under the Plan.

___

   (c)    The Employer desires to establish a “rabbi” trust for the purpose of
setting aside assets of the Employer contributed thereto for the payment of
benefits under the Plan upon the occurrence of a Change in Control.

 

4

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4.1 Participant Deferral Credits: Subject to the limitations in Section 4.1 of
the Plan, a Participant may elect to have his Compensation (as selected in
Section 2.7 of this Adoption Agreement) deferred within the annual limits below
by the following percentage or amount as designated in writing to the Committee:

 

XX

   (a)    Base salary:          maximum deferral: $             or 100%

XX

   (b)    Service Bonus:          maximum deferral: $             or 100%

XX

   (c)    Performance-Based Compensation:          maximum deferral:
$             or 100%

XX

   (d)    Compensation received as an Independent Contractor reportable on Form
1099:          maximum deferral: $             or 100%

___

   (e)    Participant deferrals not allowed.

 

5

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4.2 Employer Credits: The Employer will make Employer Credits in the following
manner:

 

XX

   (a) Employer Discretionary Credits: The Employer may make discretionary
credits to the Deferred Compensation Account of each Participant in an amount
determined as follows:    XX    (i)   An amount determined each Plan Year by the
Employer.   

___

  

(ii)

  Other:                                         
                                                             .

XX

   (b) Employer Profit Sharing Credits: The Employer may make profit sharing
credits to the Deferred Compensation Account of each Participant in an amount
determined as follows:    XX    (i)   An amount determined each Plan Year by the
Employer.    ___    (ii)   Other:                                         
                                                             .

___

   (c)    Other:                                         
                                        
                                                             .

___

   (d)    Employer Credits not allowed.

5.3 Death of a Participant: If the Participant dies while in Service, the
Employer shall pay a benefit to the Beneficiary in an amount equal to the vested
balance in the Deferred Compensation Account of the Participant determined as of
the date payments to the Beneficiary commence, plus:

 

___

   (a)   An amount to be determined by the Committee.

___

   (b)   Other:                                         
                                                                                
 .

XX

   (c)   No additional benefits.

 

6

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5.4 In-Service Distributions: In-service accounts are permitted under the Plan:

 

XX

  (a)    Yes, with respect to:      ___   Participant Deferral Credits only.  
   ___   Employer Credits only.      XX   Participant Deferral and Employer
Credits.      In-service distributions may be made in the following manner:     
XX   Single lump sum payment.      XX   Annual installment payments over no more
than 4 years.      If applicable, amounts not vested at the specified time of
distribution will be:      ___   Forfeited      XX   Distributed annually when
vested

___

  (b)    No in-service distributions permitted.

5.5 Education Distributions: Education accounts are permitted under the Plan:

 

XX

  (a)    Yes, with respect to:      ___   Participant Deferral Credits only.  
   ___   Employer Credits only.      XX   Participant Deferral and Employer
Credits.      Education distributions may be made in the following manner:     
XX   Single lump sum payment.      XX   Annual installment payments over no more
than 4 years.      If applicable, amounts not vested at the specified time of
distribution will be:      ___   Forfeited      XX   Distributed annually when
vested

___

  (b)    No education distributions permitted.

5.6 Change in Control: Participant may elect to receive distributions under the
Plan upon a Change in Control:

 

XX

  (a)    Yes, Participants may elect upon initial enrollment to have accounts
distributed upon a Change in Control.

___

  (b)    Participants may not elect to have accounts distributed upon a Change
in Control.

 

7

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6.1 Payment Options: Any benefit payable under the Plan upon a Qualifying
Distribution Event may be made to the Participant or his Beneficiary (as
applicable) in any of the following payment forms, as selected by the
Participant in the Participant Deferral Agreement:

 

1.

  Separation from Service other than Retirement (Retirement is defined by the
Employer)

XX

  (a)   A lump sum in cash as soon as practicable following the date of the
Qualifying Distribution Event.

___

  (b)   Approximately equal annual installments over a term certain as elected
by the Participant upon his entry into the Plan not to exceed      years.

___

  (c)   Other:                                         
                                                             .

2.

  Separation from Service due to Retirement

XX

  (a)   A lump sum in cash as soon as practicable following the date of the
Qualifying Distribution Event.

XX

  (b)   Approximately equal annual installments over a term certain as elected
by the Participant upon his entry into the Plan not to exceed 10 years.

___

  (c)   Other:                                         
                                                             .

3.

  Death

XX

  (a)   A lump sum in cash upon the date of the Qualifying Distribution Event.

___

  (b)   Approximately equal annual installments over a term certain as elected
by the Participant upon his entry into the Plan not to exceed      years.

___

  (c)   Other:                                         
                                                             .

 

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4. Disability

 

XX

   (a)    A lump sum in cash upon the date of the Qualifying Distribution Event.

___

   (b)    Approximately equal annual installments over a term certain as elected
by the Participant upon his entry into the Plan not to exceed ___ years.

___

   (c)    Other: _______________________________________________.

5. Change in Control

 

XX

   (a)    A lump sum in cash upon the date of the Qualifying Distribution Event.
     

___

   (b)    Approximately equal annual installments over a term certain as elected
by the Participant upon his entry into the Plan not to exceed _____ years.

___

   (c)    Other: _______________________________________________.

___

   (d)    Not applicable (if not permitted in 5.6)

6.2 De Minimis Amounts. Notwithstanding any payment election made by the
Participant, the vested balance in the Deferred Compensation Account of the
Participant will be distributed in a single lump sum payment if the payment
accompanies the termination of the Participant’s entire interest in the Plan and
the amount of such payment does not exceed $10,000.

 

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7. Vesting: An Active Participant shall be fully vested in the Employer Credits
made to the Deferred Compensation Account upon the first to occur of the
following events:

 

XX

   (a)    Normal Retirement Age.

XX

   (b)    Death.

XX

   (c)    Disability.

XX

   (d)    Change in Control

___

   (e)    Other:

XX

   (f)    Satisfaction of the vesting requirement specified below:

 

      ___    Employer Discretionary Credits: (Corporate Discretionary)         
  

___

   (i)    Immediate 100% vesting.               

___

   (ii)    100% vesting after      Years of Service.                  

XX

   (iii)    To Be Determined                        

___

   (iv)   

Number of Years

    of Service    

  

    Vested    

Percentage

                           Less than   1        %                           
                  1        %                                              2   
    %                                              3        %                  
                           4        %                           
                  5        %                                              6   
    %                                              7        %                  
                           8        %                           
                  9        %                           
                  10 or more        %                                          

 

           

For this purpose, Years of Service of a Participant shall be calculated from the
date designated below:

           

___

   (1)    First Day of Service.            

___

   (2)    Effective Date of the Plan Participation.            

___

   (3)    Each Crediting Date. Under this option (3), each Employer Credit shall
vest based on the Years of Service of a Participant from the Crediting Date on
which each Employer Discretionary Credit is made to his or her Deferred
Compensation Account. Notwithstanding the vesting schedule elected above, all
Employer Discretionary Credits to the Deferred Compensation Account shall be
100% vested upon the following event(s): ______________________.

 

10

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      XX    Employer Profit Sharing Credits: (Match Continuation)            

___

   (i)    Immediate 100% vesting.               

___

   (ii)    100% vesting after      Years of Service.                  

___

   (iii)    100% vesting at age     .                  

XX

   (iv)   

Number of Years

    of Service    

  

    Vested    

Percentage

                           Less than   1                              
                  1      0%                                              2   
  0%                                              3    20%                     
                        4    40%                                              5
   60%                                              6    80%                  
                           7    100%                           
                  8        %                                              9   
    %                                              10 or more        %         
                                

 

           

For this purpose, Years of Service of a Participant shall be calculated from the
date designated below:

           

XX

   (1)    First Day of Service.            

___

   (2)    Effective Date of the Plan Participation.            

___

   (3)    Each Crediting Date. Under this option (3), each Employer Credit shall
vest based on the Years of Service of a Participant from the Crediting Date on
which each Employer Profit Sharing Credit is made to his or her Deferred
Compensation Account. Notwithstanding the vesting schedule elected above, all
Employer Profit Sharing Credits to the Deferred Compensation Account shall be
100% vested upon the following event(s): ______________________.

 

11

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      ___    Other Employer Credits:            

___

   (i)    Immediate 100% vesting.               

___

   (ii)    100% vesting after      Years of Service.                  

___

   (iii)    100% vesting at age     .                  

___

   (iv)   

Number of Years

    of Service    

  

    Vested    

Percentage

                           Less than   1        %                           
                  1        %                                              2   
    %                                              3        %                  
                           4        %                           
                  5        %                                              6   
    %                                              7        %                  
                           8        %                           
                  9        %                           
                  10 or more        %                                          

 

           

For this purpose, Years of Service of a Participant shall be calculated from the
date designated below:

           

___

   (1)    First Day of Service.            

___

   (2)    Effective Date of the Plan Participation.            

___

   (3)    Each Crediting Date. Under this option (3), each Employer Credit shall
vest based on the Years of Service of a Participant from the Crediting Date on
which each Employer Credit is made to his or her Deferred Compensation Account.
Notwithstanding the vesting schedule elected above, all other Employer Credits
to the Deferred Compensation Account shall be 100% vested upon the following
event(s): ______________________.

14. Amendment and Termination of Plan: Notwithstanding any provision in this
Adoption Agreement or the Plan to the contrary, Section _____ of the Plan shall
be amended to read as provided in attached Exhibit ____.

 

XX

   There are no amendments to the Plan.

 

12

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17.9 Construction: The provisions of the Plan and Trust (if any) shall be
construed and enforced according to the laws of the State of Kansas, except to
the extent that such laws are superseded by ERISA and the applicable provisions
of the Code.

IN WITNESS WHEREOF, this Agreement has been executed as of the day and year
stated below.

 

QC Holdings, Inc.

Name of Employer

By:

 

 

  Authorized Person Date:  

 

NOTE: Execution of this Adoption Agreement creates a legal liability of the
Employer with significant tax consequences to the Employer and Participants. The
Employer should obtain legal and tax advice from its professional advisors
before adopting the Plan. Principal Life Insurance Company disclaims all
liability for the legal and tax consequences which result from the elections
made by the Employer in this Adoption Agreement.

 

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