Document:

qcrh_Ex10_39

		
			Exhibit 10.39
		

		
			 
		

		
			QCR  HOLDINGS, INC.
		

		
			EXECUTIVE DEFERRED COMPENSATION PLAN
		

		
			(EFFECTIVE OCTOBER 23, 2008)
		

		
			PARTICIPATION AGREEMENT
		

		
			THIS PARTICIPATION AGREEMENT (the "Participation Agreement") is entered into as of this 24th day of November, 2014 by and between QCR Holdings, Inc. (the "Employer") and Dana L. Nichols, an executive of the Employer (the "Participant").
		

		
			RECITALS:
		

		
			WHE REAS, QCR Holdings, Inc. ("QCR") has adopted the QCR Holdings Executive Deferred Compensation Plan (Effective October 23, 2008) (the "Plan"), the Employer provides for participation in such Plan and the Administrator has determined that the Participant is eligible to participate in the Plan on the terms and conditions set forth in this Participation Agreement and the Plan.
		

		
			NOW, THEREFORE, in consideration of the foregoing and the agreements and covenants set forth here i n, the parties agree as follows:
		

		
			1.         Definitions. Except as otherwise specifically provided herein, or unless the context otherwise requires, the terms used in this Participation Agreement shall have the same meanings as set forth in the Plan.
		

		
			2.        Incorporation of Plan. The Plan, a copy of which is attached hereto as Exhibit A, is hereby incorporated into this Participation Agreement as if fully set forth herein, and the parties hereby agree to be bound by all of the terms and provisions contained in the Plan. The Participant hereby acknowledges receipt of a copy of the Plan and, subject to the foregoing, confirms the Patticipant's understanding and acceptance of all of the terms and conditions contained therein. The Plan and this Participation Agreement supersede and replace in their entirety any prior agreements relating to such benefits.
		

		
			3.         Effective Date of Partici ation. The effective date of the Participant's participation in the Plan shall be May 6,  2004 (the "Participation Date"), which includes any period Participant participated under an individual deferred compensation agreement between the Participant and the Employer which was amended and restated as the Plan.
		

		
			4.        Maximum Deferral Percentage. For purposes of Section 3.1.2 of the Plan, the Participant is permitted to elect to defer up to twenty percent (20%) of the Participant's Compensation on an annual basis to the Participant's Deferral Account.
		

		
			5.         Matching Contribution. For purposes of Section 4.1.2 of the Plan, the Employer will credit the Participant's Deferral Account with a Matching Contribution equal to one hundred percent (100%) of the first five percent (5%) of Participant'  s Deferrals, and a Matching Contribution equal to fifty percent (50%) of the next ten percent (10%) of Partic ipant'  s Deferrals, but not to exceed a total often percent (10%) of Patticipant's Compensation.
		

		
			
		

		
			

		 

		

			B-1

		

		

		
			6.         Interest. For purposes of Section 4.1.4 of the Plan, interest is to be accrued on the account balances and compounded at an annual rate equal to Prime Rate plus one percentage point  as established on the first business day of the Plan Year. This interest rate shall have a minimum or floor of four percent (4 %) and shall not exceed eight percent (8 %).
		

		
			7.        Change of Control Benefit - Form of Payment and Payment Date. For purp ses of Section 5.3.2 of the Plan, the Participant's benefit due to a Change of Control shall be paid in a single lump sum within 60 days following the Separation from Service on or after a Change of Control, subject to Section 5.6 of the Plan.
		

		
			8.          Successors. This Participation Agreement shall be binding upon each of the parties and shall also be binding upon their respective successors and the Employer's assigns.
		

		
			9.          Amendments. This Participant Agreement may not be modified or amended except by a duly executed instrument in writing signed by the Employer and the  Participant consistent with the provisions of Code Section 409A.
		

		
			[signature page.follows]
		

		
			 
		

		
			
		

		
			

		 

		

			B-2

		

		

		
			IN WITNESS WHERE OF, each of the parties has caused this Participation Agreement to be executed as of the day first above written.
		

		
			 
		

		
			 
		

			
					
						 

					
					
						 

					
						 

					
					
						 

				
	
					
						PARTICIPANT:

					
					
						 

					
					
						QCR HOLDINGS, INC.

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Dana L. Nichols

					
					
						 

					
					
						By:

					
					
						/s/ Shellee Showalter

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						/s/ Dana L Nichols

					
					
						 

					
					
						Title:

					
					
						SVP

				
	
					
						Signature of Participant

					
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		 

		

			B-3qcrh_Ex10_40

		
			Exhibit 10.40
		

		
			 
		

		
			FIRST AMENDMENT TO THE
		

		
			EMPLOYMENT AGREEMENT BETWEEN 
		

		
			CEDAR RAPIDS BANK AND TRUST COMPANY
		

		
			AND DANA NICHOLS
		

		
			This Amendment (the "Amendment") is made this 31st day of December, 2008 (the "Effective Date") by and between Cedar Rapids Bank and Trust Company (the "Employer") and Dana Nichols (the "Employee").
		

		
			WHEREAS, the Employer and the Employee have entered into that certain Employment Agreement dated January 1, 2004 (the "Agreement");
		

		
			WHEREAS, the Employer and the Employee desire to amend certain provisions of the Agreement in order to bring such provisions into compliance with the applicable provisions of Section 409A of the Internal Revenue Code of 1986, as amended (and guidance issued thereunder) ("409A");
		

		
			WHEREAS, pursuant to Section 13(e) of the Agreement, the Agreement may be amended in writing with the signature of each party; and
		

		
			WHEREAS, the parties desire to amend the Agreement on the terms hereinafter set forth.
		

		
			NOW, THEREFORE, for good and valuable consideration, the sufficiency of which
		

		
			is agreed and acknowledged by the parties hereto, effective as of the Effective Date (unless otherwise stated herein) the Agreement be and is hereby amended in the following particulars:
		

		
			1.         The following sentence shall be added following the last sentence of subsection 4(b):
		

		
			"Payment of such Cash Bonus(es) will be made as soon as practicable, but in no event later than two and one-half (21⁄2) months following the end of the year in which earned."
		

		
			2.         The last sentence of the first paragraph of subsection 4(c)(i) shall be deleted and replaced with the following:
		

		
			"The incentive amount payable hereunder shall be paid within two and one-half (21⁄2) months after the end of such year."
		

		
			3.         The following sentence shall be added following the last sentence of subsection 4(d)(2):
		

		
			"Such reimbursement payments will be made as soon as practicable, but in no event later than two and one-half (21⁄2) months following the end of the year in which the corresponding expenses are incurred."
		

		
			4.         Effective January 1, 2008, subsection 4(d)(9) shall be deleted and replaced with the following:
		

		
			"(9)        Deferred Compensation. Participation under a deferred compensation agreement under which the Employee will be permitted to
		

		
			 
		

		
			 
		

		
			

		 

		

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			annually contribute and defer up to fifteen percent (15 % ) of the Employee's Base Salary and Cash Bonus, if any, and the Employer shall make a matching contrition equal to fifty percent (50 % ) of the contribution made by the Employee, up to a maximum of five percent (5%) of the Employee's Base Salary and Cash Bonus."
		

		
			5.         The penultimate sentence in Section 6 shall be deleted and replaced with the following:
		

		
			"'Disability' for the purposes of  this Agreement shall mean that (i) the Employee is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment  that can be expected to result in death or can be expected to last for a contribution period of not less than twelve (12) months, or (ii) the Employee is, by reason of any medically determinable physical or mental impairment that can be expected to result  in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering employees of the Employer."
		

		
			6.         The following sentence shall be added as an introductory paragraph in Section 10, before subsection (a):
		

		
			"Employee's employment during the term of this Agreement may be terminated by the Employer or Employee without any breach of this Agreement only under the circumstances described in this Section 10 (where such termination constitutes a "separation from service" pursuant to Code Section 409A), other than the termination of this Agreement pursuant to Sections 6 and 7."
		

		
			7.          The second sentence of subsection lO(a) shall be deleted and replaced with the following:
		

		
			"Such payment will be made in a lump sum within fifteen (15) days of termination."
		

		
			8.         The following sentence shall be added following the first sentence of subsection lO(b):
		

		
			"Such amounts shall be paid to the Employee in accordance with the Employer's regular payroll on the next regular payroll date following the Employee's voluntary termination or termination for Cause."
		

		
			9.         The fifth sentence of subsection 10(c)(4) shall be deleted and replaced with the following:
		

		
			"In the event that such opinions determine that there would be an Excess Parachute Payment, the payment hereunder or any other payment determined by such counsel to be ineluctable in Total Payments shall be modified, reduced or eliminated as specified by the Employee in writing delivered to the Employer within thirty (30) days of his receipt of such opinions or, if the Employee fails to so notify the Employer, then as the Employer shall reasonably determine, so that under the bases of calculation set forth in such opinions there will be no
		

		
			
		

		
			

		 

		

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			Excess Parachute Payment and such adjustment shall be consistent with the rules under Section 409A of the Code ."
		

		
			10.        Subsection 10(c)(5) shall be deleted in its entirety and replaced with the following:
		

		
			"If    the Employer is not in compliance with its minimum capital requirements or if the payments required under this Section 10 would cause the Employer's capital to be reduced below its minimum capital requirements, such payments shall be delayed until the earliest date at which the Employer reasonably anticipates the making of such payment will not cause the Employer's capital to be reduced below its minimum capital requirements. Such payments shall not be reduced in the event Employee obtains other employment following the termination of employment by the Employer."
		

		
			11.       The following sentence shall be added after the last sentence in subsection 1 l(b ):
		

		
			"Any payments pursuant to this indemnification will be made as soon as practicable, but in no event later than two and one-half (21⁄2) months  following the end of the year in which the corresponding expenses are incurred."
		

		
			12.       The following Section 14 shall be added:
		

		
			"Section 14. Code Section 409A.
		

		
			(a)        To the extent that any of the terms and  conditions contained herein which were modified by this amendment constitute an amendment or modification of the time or manner of payment under a non­ qualified deferred compensation plan (as defined under Code Section 409A), then to the extent necessary under the transitional guidance under Internal Revenue Service Notice 2007-86, this Agreement constitutes an amendment to, and a new election under, such deferred compensation plan, in order to properly modify the time or manner of payment consistent with such guidance.
		

		
			(b)        It is intended that the Agreement shall comply with the provisions of Code Section 409A and the Treasury regulations relating thereto so as not to subject Employee to the payment of additional taxes and interest under Code Section 409A. In furtherance of this intent, this Agreement shall be interpreted, operated and administered in a manner consistent with these intentions, and to the extent that any regulations or other guidance issued under Code Section 409A would result in the Employee being subject to payment of additional income taxes or interest under  Code Section 409A,  the parties agree to amend the Agreement to maintain to the maximum extent practicable the original intent of the Agreement while avoiding the application of such taxes or interest under Code Section 409A.
		

		
			(c)        Notwithstanding any provision in the Agreement to the contrary if, as of the effective date of Employee's termination of employment, he is a "Specified Employee," then, only to the extent required pursuant to Section 409A(a)(2)(B)(i), payments due under this  Agreement which are deemed to be deferred compensation shall be subject to a six (6) month delay following the Employee's separation from service. For purposes of Code
		

		
			 
		

		
			
		

		
			

		 

		

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			Section 409A, all installment payments of deferred compensation made hereunder, or pursuant to another plan or arrangement, shall be deemed to be separate payments and, accordingly, the aforementioned deferral shall only apply to separate payments which would occur during the six (6) month deferral period and all other payments shall be unaffected.  All delayed  payments shall be accumulated and paid in a lump-sum catch-up payment as of the first day of the seventh-month following separation from service (or, if earlier, the date of death of the Employee) with all such delayed payments being credited with interest (compounded monthly) for this period of delay equal to the prime rate in effect on the first day of such six-month period. Any portion of the benefits hereunder that were not otherwise due to be paid during the six-month period following the termination shall be paid to the Employee in accordance with the payment schedule established herein.
		

		
			(d)        The term "Specified Employee" shall mean any person who is a "key employee" (as defined in Code Section 416(i) without regard to paragraph (5) thereof), as determined by the Bank based upon the 12-month period ending on each December 31st (such 12-month period is referred to below as the "identification period"). If Employee is determined to be a key employee under Code Section 416(i) (without regard to paragraph (5) thereof) during the identification period he shall be treated as a Specified Employee for purposes of this Agreement during the 12-month period that begins on the April 1 following the close of such identification period. For purposes of determining whether Employee is a key employee under Code  Section 416(i), "compensation" shall mean Employee's W-2 compensation as reported by the Employer for a particular calendar year."
		

		
			[Signature page to follow]
		

		
			
		

		
			

		 

		

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			IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year first above set forth.
		

		
			 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						CEDAR RAPIDS BANK AND TRUST COMPANY

					
					
						 

					
					
						EMPLOYEE

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						/s/ Larry Helling

					
					
						 

					
					
						 

				
	
					
						Name: Larry Helling

					
					
						 

					
					
						/s/ Dana Nichols

				
	
					
						Title:

					
					
						President and Chief Executive Officer

					
					
						 

					
					
						DANA NICHOLS

				

		
			 
		

		 

		

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