Document:

ex102051208.htm

    Exhibit
10.2

    DUBUQUE
BANK AND TRUST COMPANY

    EXECUTIVE
SUPPLEMENTAL LIFE INSURANCE PLAN

    

    Pursuant
to due authorization by its Board of Directors, the undersigned, DUBUQUE BANK
AND TRUST COMPANY, a corporation located in DUBUQUE, IOWA, did constitute,
establish and adopt the following Executive Supplemental Life Insurance Plan
(the “Plan”), effective January 1, 2005.

    

    The
purpose of this Plan is to attract, retain, and reward Employees, by dividing
the death proceeds of certain life insurance policies, which are owned by the
Company on the lives of the participating Employees, with the designated
beneficiary of each insured participating Employee. The Company will pay the
life insurance premiums from its general assets.

    

    

    ARTICLE
1

    DEFINITIONS

    

    Whenever used in this Plan, the
following terms shall have the meanings specified:

    

    
      	
              1.1  

            	
              “Beneficiary”
      means each designated person, or the estate of a deceased Participant,
      entitled to benefits, if any, upon the death of a
    Participant.

            

    

    

    
      	
              1.2  

            	
              “Beneficiary
      Designation Form” means the most recent form accepted by the Plan
      Administrator of the Dubuque Bank and Trust Company Split-Dollar Life
      Insurance Plan, dated November 13, 2001, unless a Participant completes,
      signs and returns to the Plan Administrator of the Plan a separate form to
      designate one or more
Beneficiaries.

            

    

    

    
      	
              1.3  

            	
              “Board” means
      the Board of Directors of the Company as from time to time
      constituted.

            

    

    

    
      	
              1.4  

            	
              “Change of
      Control” means:

            

    

    

    
      	
              (i)  

            	
              The
      consummation of the acquisition by a person (as such term is defined in
      Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended
      (the “1934 Act”)) of beneficial ownership (within the meaning of Rule
      13d-3 promulgated under the 1934 Act) of fifty-one percent (51%) or more
      of the combined voting power of the then outstanding voting securities of
      the Company or Heartland Financial USA, Inc.  (“Heartland”),
      Company’s Parent; or

            

    

    

    
      	
              (ii)  

            	
              The
      individuals who, as of the date hereof, are members of the Board of
      Directors of the Company or Heartland (the “Board”) cease for any reason
      to constitute a majority of the Boards, unless the election, or nomination
      for election by the stockholders, of any new director was approved by a
      vote of a majority of either Board and such new director shall, for
      purposes of this Plan, be considered as a member of either Board;
      or

            

    

    

    
      	
              (iii)  

            	
               Approval
      by stockholders of the Company or Heartland of: (1) a merger or
      consolidation if the stockholders, immediately before such merger or
      consolidation, do not, as a result of such merger or consolidation, own,
      directly or indirectly, more than fifty-one percent (51%) of the combined
      voting power of the then outstanding voting securities of the entity
      resulting from such merger or consolidation in substantially the same
      proportion as their ownership of the combined voting power of the voting
      securities of the Company or Heartland outstanding immediately before such
      merger or Company; or (2) a complete liquidation or dissolution or a plan
      for the sale or other disposition of all or substantially all of the
      assets of the Company or Heartland.

            

    

    

    Notwithstanding
the foregoing, a Change of Control shall not be deemed to occur solely because
fifty-one percent (51%) or more of the combined voting power of the then
outstanding securities of the Company or Heartland are acquired
by:  (1) a trustee or other fiduciary holding securities under one or
more employee benefit plans maintained for employees of the entity; or (2) any
corporation which, immediately prior to such acquisition, is owned directly or
indirectly by the stockholders in the same proportion as their ownership of
stock immediately prior to such acquisition.

    

    
      	
              1.5  

            	
              “Company” means
      DUBUQUE BANK AND TRUST COMPANY and any of its subsidiaries (now in
      existence or hereafter formed or acquired) that have been selected by the
      Board to participate in the Plan and have adopted the Plan as a
      sponsor.

            

    

    

    
      	
              1.6  

            	
              “Company’s
      Interest” means the benefit set forth in Section
    3.2.

            

    

    

    
      	
              1.7  

            	
              “Compensation”
      means the Participant’s total base annual salary, bonus and commissions
      for the previous twelve (12) months, at the earliest of: (i) the date of
      the Participant’s death; (ii) the date of the Participant’s Disability;
      (iii) the Participant’s Normal Retirement Date; (iv) the date of the
      Participant’s Early Retirement; (v) upon Change of
  Control.

            

    

    

    
      	
              1.8  

            	
              “Disability”
      means the Participant’s suffering a sickness, accident or injury which has
      been determined by the insurance carrier of any individual or group
      disability insurance policy covering the Participant, or by the Social
      Security Administration, to be a disability rendering the Participant
      totally and permanently disabled.  Upon the request of the Plan
      Administrator, the Participant must submit proof to the Plan Administrator
      of the insurance carrier’s or Social Security Administration’s
      determination.

            

    

    

    
      	
              1.9  

            	
              “Early
      Retirement” means the Participant’s retirement between the ages of
      fifty-five (55) and sixty-five (65) provided there are ten (10) years of
      continuous service, as defined by the Heartland Financial Retirement Plan,
      provided to the Company.

            

    

    

    
      	
              1.10  

            	
              “Election to
      Participate” means the form required by the Plan Administrator of
      an eligible Employee to indicate acceptance of participation in this
      Plan.

            

    

    

    
      	
              1.11  

            	
              “Employee” means
      an active employee of the Company.

            

    

    

    
      	
              1.12  

            	
              “Insured” means
      the individual Participant whose life is
  insured.

            

    

    

    
      	
              1.13  

            	
              “Insurer” means
      the insurance company issuing the life insurance policy on the life of the
      Insured.

            

    

    

    
      	
              1.14  

            	
               “Net Death
      Proceeds” means the total death proceeds of the Policy minus the
      cash surrender value.

            

    

    

    
      	
              1.15  

            	
              “Normal Retirement
      Age” means the Participant attaining age
  65.

            

    

    

    
      	
              1.16  

            	
              “Normal Retirement
      Date” means the later of the Normal Retirement Age or the date of
      Termination of Employment for any reason other than Termination for
      Cause.

            

    

    

    
      	
              1.17  

            	
              “Participant”
      means an Employee (i) who has been employed by the Company for at
      least three years; (ii) who is selected to participate in the Plan,
      (iii) who elects to participate in the Plan, (iv) who signs an
      Election to Participate and a Beneficiary Designation Form, (v) whose
      signed Election to Participant and Beneficiary Designation Form are
      accepted by the Plan Administrator, (vi) who commences participation
      in the Plan, and (vii) whose Participation has not
    terminated.

            

    

    

    
      	
              1.18  

            	
              “Participant’s
      Interest” means the benefit set forth in Section
    3.1.

            

    

    

    
      	
              1.19  

            	
              “Policy” means
      the individual insurance policy or policies adopted by the Plan
      Administrator for purposes of insuring a Participant’s life under this
      Plan.

            

    

    

    
      	
              1.20  

            	
              “Plan
      Administrator” means the plan administrator described in Article
      10.

            

    

    

    
      	
              1.21  

            	
              “Termination of
      Employment” means the termination of Participant’s full-time
      service to the Company before Normal Retirement Age for reasons other than
      (i) death; (ii) Disability; (iii) Early Retirement; or (iv) a leave of
      absence approved by the Company.

            

    

    

    
      	
              1.22  

            	
              “Termination for
      Cause” means that the Participant's employment with the Company has
      been or is terminated by the Board for any of the following
      reasons:

            

    

    

    
      	
              (a)  

            	
              Gross
      negligence or gross neglect of duties;
or

            

    

    

    
      	
              (b)  

            	
              Commission
      of a felony or of a gross misdemeanor involving moral turpitude;
      or

            

    

    

    
      	
              (c)  

            	
              Fraud,
      disloyalty, dishonesty or willful violation of any law or significant
      Company policy committed in connection with the Participant's employment
      and resulting in an adverse effect on the Company;
  or

            

    

    

    
      	
              (d)  

            	
              Issuance
      by the Company’s banking regulators of an order for removal of the
      Participant.

            

    

     

    ARTICLE
2

    PARTICIPATION

    

    
      	
              2.1  
      

            	
              Selection by Plan
      Administrator.  Participation in the Plan shall be
      limited to those Employees of the Company selected by the Plan
      Administrator, in its sole discretion, to participate in the
      Plan.

            

    

    
      	
               
      

            	 

    

    
      	
              2.2   
      

            	
              Enrollment
      Requirements.  As a condition to participation, each
      selected Employee shall complete, execute and return to the Plan
      Administrator (i) an Election to Participate, and (ii) a Beneficiary
      Designation Form.  In addition, the Plan Administrator shall
      establish from time to time such other enrollment requirements as it
      determines in its sole discretion are
necessary.

            

    

    

    
      	
              2.3   
      

            	
              Eligibility;
      Commencement of Participation.  Provided an Employee
      selected to participate in the Plan has met all enrollment requirements
      set forth in this Plan and required by the Plan Administrator, that
      Employee will become a Participant, be covered by the Plan and will be
      eligible to receive benefits at the time and in the manner provided
      hereunder, subject to the provisions of the
  Plan.

            

    

    

    
      	
              2.4   
      

            	
              Termination of
      Participation.  A Participant’s rights under this Plan
      shall automatically cease and his or her participation in this Plan shall
      automatically terminate, if any of the following events
      occur:  (i) if there is a Termination for Cause; (ii) if the
      Participant’s employment with the Company is terminated prior to Normal
      Retirement Age for reasons other than Early Retirement, Disability (except
      as set forth in Section 2.5(b)) or a leave of absence approved by the
      Company; or (iii) upon the Participant’s ninetieth (90th)
      birthday.  In the event that the Company decides to maintain the
      Policy after the Participant’s termination of participation in the Plan,
      the Company shall be the direct beneficiary of the entire death proceeds
      of the Policy.

            

    

    

    
      	
              2.5   
      

            	
              Disability.

            

    

    

    
      	
               
      

            	
              (a)

            	
              Except
      as otherwise provided in paragraph (b) of this Section 2.5, if the
      Participant’s employment with the Company is terminated because of the
      Participant’s Disability, the Company shall maintain the Policy in full
      force and effect and, in no event, shall the Company amend, terminate or
      otherwise abrogate the Participant’s Interest in the
      Policy.  Notwithstanding, the Company may replace the Policy
      with a comparable insurance policy to cover the benefit provided under
      this Plan.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Notwithstanding
      the provisions of paragraph (a) of this Section 2.5, upon the disabled
      Participant’s gainful employment with an entity other than the Company,
      the Company shall have no further obligation to the disabled Participant,
      and the disabled Participant’s rights pursuant to the Plan shall
      cease.  In the event the disabled Participant’s rights are
      terminated hereunder and the Company decides to maintain the Policy, the
      Company shall be the direct beneficiary of the entire death proceeds of
      the Policy.

            

    

    

    
      	
              2.6  

            	
              Retirement.  If
      the Participant remains in the continuous employ of the Company, upon the
      Participant’s Early Retirement or Normal Retirement Date, the Company
      shall maintain the Policy in full force and effect and in no event shall
      the Company amend, terminate or otherwise abrogate the Participant’s
      Interest in the Policy.  Notwithstanding, the Company may
      replace the Policy with a comparable insurance policy to cover the benefit
      under this Plan.

            

    

    

    ARTICLE
3

    POLICY
OWNERSHIP/INTERESTS

    

    
      	
              3.1  

            	
              Participant’s
      Interest.  The Participant, or the Participant’s
      assignee, shall have the right to designate the Beneficiary of an amount
      of death proceeds equal to the lesser of (i) one million dollars
      ($1,000,000) or (ii) two (2) times Compensation less any death proceeds
      provided to the Participant’s beneficiary or beneficiaries under the
      Dubuque Bank and Trust Company Split-Dollar Life Insurance Plan, dated
      November 13, 2001, not to exceed the Net Death Proceeds, subject
      to:

            

    

    

    
      	
              (a)  

            	
              Forfeiture
      of Participant’s rights upon Termination of
  Employment;

            

    

    
      	
              (b)  

            	
              Forfeiture
      of Participant’s rights upon Termination for
  Cause;

            

    

    
      	
              (c)  

            	
              Forfeiture
      of Participant’s rights upon gainful employment following
      Disability;

            

    

    
      	
              (d)  

            	
              Forfeiture
      of Participant’s rights upon attaining age ninety
  (90);

            

    

    
      	
              (e)  

            	
              Termination
      of the Plan and the corresponding forfeiture of rights for all
      Participants or any one Participant in accordance with Section 9.1 hereof;
      and

            

    

    
      	
              (f)  

            	
              Forfeiture
      of the Participant’s rights and interest hereunder that the Company may
      reasonably consider necessary to conform with applicable law (including
      the Sarbanes-Oxley Act of 2002).

            

    

    

    
      	
              3.2 
        

            	
              Company's
      Interest.  The Company shall own the Policy and shall
      have the right to exercise all incidents of ownership except that the
      Company shall not sell, surrender or transfer ownership of a Policy so
      long as a Participant has an interest in the Policy as described in
      Section 3.1.  This provision shall not impair the right of the
      Company, subject to Article 9, to terminate this Plan nor shall it impair
      the right of the Company to replace the Policy with a comparable insurance
      policy to cover the benefit under this Plan.  With respect to
      each Policy, the Company shall be the beneficiary of the remaining death
      proceeds of the Policy after the Participant’s Interest is determined
      according to Section 3.1.

            

    

     

    ARTICLE
4

    PREMIUMS

    

    
      	
              4.1   
      

            	
              Premium
      Payment.  The Company shall pay all premiums due on all
      Policies.

            

    

    

    
      	
              4.2   
      

            	
              Economic
      Benefit.  The Plan Administrator shall determine the
      economic benefit attributable to any Participant based on the amount of
      the current term rate for the Participant's age multiplied by the
      aggregate death benefit payable to the Participant's
      Beneficiary.  The "current term rate" is the minimum amount
      required to be imputed under Internal Revenue Notice 2002-8, or any
      subsequent applicable authority.

            

    

    

    
      	
              4.3   
      

            	
              Imputed
      Income.  The Company shall impute the economic benefit to
      the Participant on an annual basis, by adding the economic benefit to the
      Participant’s W-2, or if applicable, Form
1099.

            

    

    

    

    
      	
               
      

            	
              ARTICLE
      5

            

    

    
      	
               
      

            	
              BENEFICIARIES

            

    

    

    
      	
              5.1   
      

            	
              Beneficiary.
      Each Participant shall have the right, at any time, to designate a
      Beneficiary(ies) to receive any benefits payable under the Plan to a
      beneficiary upon the death of a Participant.  The Beneficiary
      designated under this Plan may be the same as or different from the
      Beneficiary designation under any other plan of the Company in which the
      Participant participates.

            

    

    

    
      	
              5.2   
      

            	
              Beneficiary
      Designation; Change.  A Participant shall designate a
      Beneficiary by completing and signing the Beneficiary Designation Form,
      and delivering it to the Plan Administrator or its designated
      agent.  The Participant's beneficiary designation shall be
      deemed automatically revoked if the Beneficiary predeceases the
      Participant or if the Participant names a spouse as Beneficiary and the
      marriage is subsequently dissolved.  A Participant shall have
      the right to change a Beneficiary by completing, signing and otherwise
      complying with the terms of the Beneficiary Designation Form and the Plan
      Administrator’s rules and procedures, as in effect from time to
      time.  Upon the acceptance by the Plan Administrator of a new
      Beneficiary Designation Form, all Beneficiary designations previously
      filed shall be cancelled.  The Plan Administrator shall be
      entitled to rely on the last Beneficiary Designation Form filed by the
      Participant and accepted by the Plan Administrator prior to the
      Participant’s death.

            

    

    

    
      	
              5.3   
      

            	
              Acknowledgment.  No
      designation or change in designation of a Beneficiary shall be effective
      until received, accepted and acknowledged in writing by the Plan
      Administrator or its designated
agent.

            

    

    

    
      	
              5.4   
      

            	
              No Beneficiary
      Designation.  If the Participant dies without a valid
      designation of beneficiary, or if all designated Beneficiaries predecease
      the Participant, then the Participant’s surviving spouse shall be the
      designated Beneficiary.  If the Participant has no surviving
      spouse, the benefits shall be made payable to the personal representative
      of the Participant's estate.

            

    

    

    
      	
              5.5   
      

            	
              Facility of
      Payment.  If the Plan Administrator determines, in its
      discretion, that a benefit is to be paid to a minor, to a person declared
      incompetent, or to a person incapable of handling the disposition of that
      person’s property, the Plan Administrator may direct payment of such
      benefit to the guardian, legal representative or person having the care or
      custody of such minor, incompetent person or incapable
      person.  The Plan Administrator may require proof of
      incompetence, minority or guardianship as it may deem appropriate prior to
      distribution of the benefit.  Any payment of a benefit shall be
      a payment for the account of the Participant and the Participant’s
      Beneficiary, as the case may be, and shall be a complete discharge of any
      liability under the Plan for such payment
  amount.

            

    

    

    ARTICLE
6

    ASSIGNMENT

    

    Any
Participant may irrevocably assign without consideration all or part of such
Participant’s Interest in this Plan to any person, entity or
trust.  In the event a Participant shall transfer all or part of such
Participant’s Interest, then all or part of that Participant's Interest in this
Plan shall be vested in his or her transferee, who shall be substituted as a
party hereunder, and that Participant shall have no further interest in this
Plan.

    

    ARTICLE
7

    INSURER

    

    The
Insurer shall be bound only by the terms of its given Policy.  Any
payments the Insurer makes or actions it takes in accordance with a Policy shall
fully discharge it from all claims, suits and demands of all persons relating to
that Policy.  The Insurer shall not be bound by or deemed to have
notice of the provisions of this Plan.  The Insurer shall have the
right to rely on the Plan Administrator’s representations with regard to any
definitions, interpretations or Policy interests as specified under this
Plan.

     

    ARTICLE
8

    CLAIMS
AND REVIEW PROCEDURE

    

    
      	
              8.1   
      

            	
              Claims
      Procedure.  A Participant or Beneficiary (“claimant”) who
      has not received benefits under the Plan that he or she believes should be
      paid shall make a claim for such benefits as
  follows:

            

    

    

    
      	
                    
      8.1.1

            	
              Initiation – Written
      Claim.  The claimant initiates a claim by submitting to
      the Plan Administrator a written claim for the
  benefits.

            

    

    

    
      	
              8.1.2 
      

            	
              Timing of Plan
      Administrator Response.  The Plan Administrator shall
      respond to such claimant within 90 days after receiving the
      claim.  If the Plan Administrator determines that special
      circumstances require additional time for processing the claim, the Plan
      Administrator can extend the response period by an additional 90 days by
      notifying the claimant in writing, prior to the end of the initial 90-day
      period, that an additional period is required.  The notice of
      extension must set forth the special circumstances and the date by which
      the Plan Administrator expects to render its
  decision.

            

    

    

    
      	
              8.1.3  

            	
              Notice of
      Decision.  If the Plan Administrator denies part or all
      of the claim, the Plan Administrator shall notify the claimant in writing
      of such denial.  The Plan Administrator shall write the
      notification in a manner calculated to be understood by the
      claimant.  The notification shall set
  forth:

            

    

    

    
      	
              (a)  

            	
              The
      specific reasons for the denial;

            

    

    
      	
              (b)  

            	
              A
      reference to the specific provisions of the Plan on which the denial is
      based;

            

    

    
      	
              (c)  

            	
              A
      description of any additional information or material necessary for the
      claimant to perfect the claim and an explanation of why it is
      needed;

            

    

    
      	
              (d)  

            	
              An
      explanation of the Plan’s review procedures and the time limits applicable
      to such procedures; and

            

    

    
      	
              (e)  

            	
              A
      statement of the claimant’s right to bring a civil action under ERISA
      Section 502(a) following an adverse benefit determination on
      review.

            

    

    

    
      	
              8.2   
      

            	
              Review
      Procedure.  If the Plan Administrator denies part or all
      of the claim, the claimant shall have the opportunity for a full and fair
      review by the Plan Administrator of the denial, as
  follows:

            

    

    

    
      	
              8.2.1 
      

            	
              Initiation – Written
      Request.  To initiate the review, the claimant, within 60
      days after receiving the Plan Administrator’s notice of denial, must file
      with the Plan Administrator a written request for
  review.

            

    

    

    
      	
              8.2.2 
      

            	
              Additional Submissions
      – Information Access.  The claimant shall then have the
      opportunity to submit written comments, documents, records and other
      information relating to the claim.  The Plan Administrator shall
      also provide the claimant, upon request and free of charge, reasonable
      access to, and copies of, all documents, records and other information
      relevant (as defined in applicable ERISA regulations) to the claimant’s
      claim for benefits.

            

    

    

    
      	
              8.2.3 
      

            	
              Considerations on
      Review.  In considering the review, the Plan
      Administrator shall take into account all materials and information the
      claimant submits relating to the claim, without regard to whether such
      information was submitted or considered in the initial benefit
      determination.

            

    

    

    
      	
              8.2.4 
      

            	
              Timing of Plan
      Administrator’s Response.  The Plan Administrator shall
      respond in writing to such claimant within 60 days after receiving the
      request for review.  If the Plan Administrator determines that
      special circumstances require additional time for processing the claim,
      the Plan Administrator can extend the response period by an additional 60
      days by notifying the claimant in writing, prior to the end of the initial
      60-day period, that an additional period is required.  The
      notice of extension must set forth the special circumstances and the date
      by which the Plan Administrator expects to render its
      decision.

            

    

    

    
      	
              8.2.5  

            	
              Notice of
      Decision.  The Plan Administrator shall notify the
      claimant in writing of its decision on review.  The Plan
      Administrator shall write the notification in a manner calculated to be
      understood by the claimant.  The notification shall set
      forth:

            

    

    

    
      	
              (a)  

            	
              The
      specific reasons for the denial;

            

    

    
      	
              (b)  

            	
              A
      reference to the specific provisions of the Plan on which the denial is
      based;

            

    

    
      	
              (c)  

            	
              A
      statement that the claimant is entitled to receive, upon request and free
      of charge, reasonable access to, and copies of, all documents, records and
      other information relevant (as defined in applicable ERISA regulations) to
      the claimant’s claim for benefits;
and

            

    

    
      	
              (d)  

            	
              A
      statement of the claimant’s right to bring a civil action under ERISA
      Section 502(a).

            

    

    

    

    ARTICLE
9

    AMENDMENTS
AND TERMINATION

    

    
      	
              9.1  

            	
              Amendment or
      Termination of Plan.  Except as otherwise provided in
      Sections 2.5, 2.6, 9.2 and 9.4, the Company has the unilateral right at
      any time (i) to amend or terminate the Plan, except this Plan shall not be
      amended or terminated within twelve (12) months prior to a Change of
      Control without the Participant’s written consent or (ii) to exercise its
      right to surrender the Policy.

            

    

    

    
      	
              9.2  

            	
              Amendment or
      Termination of Plan Upon Change of
      Control.  Notwithstanding anything herein to the
      contrary, if there should be a Change of Control in the Company, then the
      Participant’s Interest under this Plan shall be frozen as of the date the
      Change of Control occurs.  Further, the Company shall pay or
      create a vehicle to pay, or cause the successor in interest to repay any
      outstanding loans and to pay to Insurer the amount of premium necessary to
      acquire in full (endow) enough insurance coverage to pay the Participant’s
      Interest as then frozen and the Company’s premium payments under the
      Policy.  Further, as of the date of the Change of Control, all
      amounts due to Participant under this Plan shall be fully vested and shall
      not be subject to subsequent events including, but not limited to, the
      termination of employment of the
Participant.

            

    

    

    
      	
              9.3  

            	
              Automatic
      Termination.  Subject to Sections 3.1, 9.2 and 9.4,
      participation in this Plan shall automatically terminate upon the
      occurrence of any of the following
events:

            

    

    

    
      	
              9.3.1  

            	
              The
      bankruptcy, receivership or dissolution of the
  Company;

            

    

    

    
      	
              9.3.2  

            	
              The
      Participant’s violation of the terms of Article
  11.

            

    

    

    
      	
              9.4  

            	
              Disposition of the
      Policy on Termination of the Plan During the Participant’s
      Lifetime.  If the Plan is terminated, the Company shall
      give notice as set forth below.

            

    

    

    
      	
              9.4.1 
      

            	
              Unless
      the Participant’s interest in the Plan is terminated under Section 3.1 or
      9.3 above, for sixty (60) days after the date the Participant receives
      notice from the Company of the termination of this Plan during the
      Participant’s lifetime, the Participant shall have the assignable option
      to purchase the Policy from the Company.  The purchase price for
      the Policy shall be the greater of the total amount of the premium
      payments made by the Company hereunder or the cash value of the Policy,
      less any indebtedness secured by the Policy which remains outstanding as
      of the date of such termination, including interest on such
      indebtedness.  Upon receipt of such amount, the Company shall
      transfer all of its rights, title and interest in and to the Policy to the
      Participant or his or her assignee, by the execution and delivery of an
      appropriate instrument of transfer.

            

    

    

    
      	
              9.4.2 
      

            	
              If
      the Participant or his or her assignee fails to exercise such option
      within such sixty (60) day period, then the Company may enforce any of its
      ownership rights under the policy.  Thereafter, neither the
      Participant, the Participant’s assignee nor the assignee’s heirs, assigns
      or beneficiaries shall have any further interest in and to the Policy,
      either under the terms thereof or under this
  Plan.

            

    

    

    

    ARTICLE
10

    ADMINISTRATION

    

    
      	
              10.1  

            	
              Plan Administrator
      Duties.  This Plan shall be administered by a Plan
      Administrator which shall consist of the Board, or such committee or
      persons as the Board may choose.  Members of the Plan
      Administrator may be Participants under this Plan.  The Plan
      Administrator shall also have the discretion and authority to (i) make,
      amend, interpret and enforce all appropriate rules and regulations for the
      administration of this Plan and (ii) decide or resolve any and all
      ques­tions including interpretations of this Plan, as may arise in
      connection with the Plan.

            

    

    

    
      	
              10.2  

            	
              Agents.  In
      the administration of this Plan, the Plan Administrator may employ agents
      and delegate to them such administrative duties as it sees fit, (including
      acting through a duly appointed representative), and may from time to time
      consult with counsel who may be counsel to the
  Company.

            

    

    

    
      	
              10.3  

            	
              Binding Effect of
      Decisions.  The decision or action of the Plan
      Administrator with respect to any question arising out of or in connection
      with the administration, interpretation and application of the Plan and
      the rules and regulations promulgated hereunder shall be final and
      conclusive and binding upon all persons having any interest in the
      Plan.

            

    

    

    
      	
              10.4  

            	
              Indemnity of Plan
      Administrator.  The Company shall indemnify and hold
      harmless the members of the Plan Administrator against any and all claims,
      losses, damages, expenses or liabilities arising from any action or
      failure to act with respect to this Plan, except in the case of willful
      misconduct by the Plan Administrator or any of its
  members.

            

    

    

    
      	
              10.5  

            	
              Information.  To
      enable the Plan Administrator to perform its functions, the Company shall
      supply full and timely information to the Plan Administrator on all
      matters relating to the Compensation of its Participants, the date and
      circumstances of the retirement, Disability, death or Termination of
      Employment of its Participants, and such other pertinent information as
      the Plan Administrator may reasonably
require.

            

    

    

    
      	
              10.6  

            	
              Suicide, Misstatement
      or Fraud.  The Company shall not pay any benefit under
      this Plan if the Participant:

            

    

    

    
      	
              10.6.1  

            	
              Commits
      suicide within two years (i) after the date of this Plan or (ii) issuance
      of the Policy, whichever occurs
later;

            

    

    

    
      	
              10.6.2  

            	
              Has
      made any material misstatement of fact or committed fraud (as determined
      by the Insurer) on any application for life insurance benefits provided by
      the Company under this Plan; or

            

    

    

    
      	
              10.6.3  

            	
              Should
      die while engaged in any activity or under circumstances that are listed
      as exclusions in the Policy.

            

    

    

    

    ARTICLE
11

    NON-COMPETE

    

    
      	
              11.1   
      

            	
              Non-Compete.  For
      purposes of this Plan, a Participant may not engage in any competitive
      practices or activity prior to or after Early Retirement or Normal
      Retirement for a period of two years, in an area within a 50-mile radius
      of any branch or location of the Company or Heartland now or hereafter
      existing, without the express written consent of the Company or
      Heartland.  A Participant shall not divulge to any person, firm
      or corporation, or use on Participant’s own behalf, any information,
      acquired by Participant during Participant’s employment with the Company
      or Heartland, concerning the Company or Heartland’s accounts, clients,
      customers, policyholders, expiration lists or business or information of
      any kind whatsoever owned by the Company or
      Heartland.  Furthermore, for purposes of this Plan, the
      Participant shall be deemed to compete with the Company or Heartland, if
      as hereinafter provided, the Participant (i) competes directly with the
      Company or Heartland; (ii) is or becomes financially or beneficially
      interested in any person and/or business who or which competes with the
      Company; however, ownership of not more than five percent (5%) of any
      class of securities traded actively over-the-counter or through a stock
      exchange shall not violate this condition (ii); or (iii) acts directly or
      indirectly, as broker, consultant, agent, lender, guarantor or salesman
      for or on behalf of any person or business who or which competes with the
      Company or Heartland.

            

    

    

    A
violation of this section shall cause the Participant’s interest in the Plan to
be terminated.

    

    

    ARTICLE
12

    MISCELLANEOUS

    

    
      	
              12.1   
      

            	
              Binding
      Effect.  This Plan shall bind each Participant and the
      Company, their beneficiaries, survivors, executors, administrators and
      transferees and any Beneficiary.

            

    

    

    
      	
              12.2   
      

            	
              No Guarantee of
      Employment.  This Plan is not an employment policy or
      contract. It does not give a Participant the right to remain an Employee
      of the Company, nor does it interfere with the Company's right to
      discharge a Participant.  It also does not require a Participant
      to remain an Employee nor interfere with a Participant's right to
      terminate employment at any time.

            

    

    

    
      	
              12.3  

            	
              Applicable
      Law.  The Plan and all rights hereunder shall be governed
      by and construed according to the laws of the State of Iowa, except to the
      extent preempted by the laws of the United States of
    America.

            

    

    

    
      	
              12.4  

            	
              Reorganization.  The
      Company shall not merge or consolidate into or with another company, or
      reorganize, or sell substantially all of its assets to another company,
      firm or person unless such succeeding or continuing company, firm or
      person agrees to assume and discharge the obligations of the Company under
      this Plan.  Upon the occurrence of such event, the term
      “Company” as used in this Plan shall be deemed to refer to the successor
      or survivor company.

            

    

    

    
      	
              12.5  

            	
              Notice.  Any
      notice or filing required or permitted to be given to the Plan
      Administrator under this Plan shall be sufficient if in writing and
      hand-delivered, or sent by registered or certified mail, to the address
      below:

            

    

    

    
      	
              Director
      of Human Resources

            
	
              Heartland
      Financial USA, Inc.

            
	
              1398
      Central Avenue

            
	
              Dubuque,
      IA 52001

            

    

     

    Such
notice shall be deemed given as of the date of delivery or, if delivery is made
by mail, as of the date shown on the postmark or the receipt for registration or
certification.

     

    

    Any
notice or filing required or permitted to be given to a Participant under this
Plan shall be sufficient if in writing and hand-delivered, or sent by mail, to
the last known address of the Participant.

    

    
      	
              12.6   
      

            	
              Entire
      Agreement.  This Plan, along with a Participant’s
      Election to Participate, Beneficiary Designation Form and any agreement in
      writing between the Company and any Participant, constitute the entire
      agreement between the Company and the Participant as to the subject matter
      hereof.  No rights are granted to the Participant under this
      Plan other than those specifically set forth
  herein.

            

    

    

    

    IN
WITNESS WHEREOF, the Company executes this Plan as of the date indicated
above.

    

    DUBUQUE BANK AND TRUST
COMPANY

    

    By  ______________________________________

    

    Title  ____________________________________

    

    
 

    AMENDMENT
NO. 1 TO THE

    DUBUQUE
BANK AND TRUST COMPANY

    EXECUTIVE
SUPPLEMENTAL LIFE INSURANCE PLAN

    

    

    THIS
AMENDMENT, is effective as of December 31, 2007 by Dubuque Bank and Trust
Company (the “Company”).

    

    W I T N E S S E T
H

    

    WHEREAS,
the Company maintains the Dubuque Bank and Trust Company Executive Supplemental
Life Insurance Plan (the “Plan”) effective January 1, 2005;

    

    WHEREAS,
the Company desires to amend the Plan effective as of December 31, 2007;
and

    

    WHEREAS,
Article 9.1 of the Plan reserves to the Company the right to amend the Plan;
and

    

    WHEREAS,
the Participants in the Plan listed on Exhibit A hereto are hereby executing
this Amendment to consent to the Amendment in the event such consent is required
pursuant to Article 9.1 of the Plan;

    

    NOW,
THEREFORE, the Plan is hereby amended as follows:

    

    FIRST:  Article
1 of the Plan is hereby amended to add the following new section:

    

    1.23  Net at Risk Amount means the
total proceeds payable from the Policy minus the cash
surrender value of the Policy as of the date of the Participant’s
death.

    

    SECOND:  Article
3.1 of the Agreement is hereby amended by adding thereto, at the end thereof,
the following:

    

    Notwithstanding
the foregoing, with respect to a Participant listed on Exhibit A hereto, the
Participant’s interest as set forth above shall not exceed the lesser of (i)
$1,000,000 or (ii) one hundred percent (100%) of the “Net at Risk Amount” (as
defined herein), less the “Participant’s Interest” under the amount paid
pursuant to Dubuque Bank and Trust Company Split-Dollar Life Insurance Plan (as
such term is defined therein).

    

    In the
event a Participant ceases to be a full-time employee and becomes a part-time
employee, as determined by the Company’s standard practices, the Participant’s
interest as set forth herein shall be frozen at the amount in effect immediately
prior to the date of such change.

    

    

    THIRD:  Article
3.2 of the Agreement is hereby amended by adding thereto, at the end thereof,
the following:

    

    Notwithstanding
the foregoing, the Company may transfer ownership of the Policy or any permitted
replacement Policy to a grantor trust to which the Company is a
party.

    

    FOURTH:  Article
12 of the Plan is hereby amended to add the following new section:

    12.7  Professional Fees Following Change
of Control.  If the Participant incurs legal fees or other
expenses on or after the date of a Change of Control in an effort to enforce or
obtain the benefits of this Plan, the Company, shall, regardless of the outcome
of such effort, reimburse the Participant for such legal fees and other expenses
in an amount not to exceed $500,000.

    

    FIFTH:  The
Plan is hereby further amended by adding at the end thereof the attached Exhibit
A, which is a list of Participants affected by this Amendment.

    

    SIXTH:  The
Plan, as hereinabove amended shall remain in full force and effect.

    

    

    [Signature
Page Follows]

    

    IN
WITNESS WHEREOF, the parties hereto have executed this Amendment as of December
31, 2007.

    

    DUBUQUE BANK AND TRUST
COMPANY

     

    

    By: ____________________________                                                               

    Its: ____________________________                                                               

     

    PARTICIPANTS

                                    ________________________________

                                    ________________________________

        
                               ________________________________

                                      ________________________________

      
                                        ________________________________

                                        ________________________________

                                          ________________________________

                                          ________________________________

        

      

    

    [End
of Participant signatures]

    

    EXHIBIT
A

    DUBUQUE
BANK AND TRUST COMPANY

    EXECUTIVE
SUPPLEMENTAL LIFE INSURANCE PLAN

    

    
      	
              Participant

            	
              MassMutual
      Policy Number

            
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	 
      

    

     

    BENEFICIARY
DESIGNATION FORM

    

    I
designate the following as Beneficiary of benefits under the Dubuque Bank and
Trust Company Executive Supplemental Life Insurance Plan payable following my
death.

    

    

    
      	
               
      

            	
              Primary:  ____________________________________________________________________

            

    

    

    
      	
               
      

            	
              ___________________________________________________________________________

            

    

    

    
      	
               
      

            	
              Contingent:  __________________________________________________________________

            

    

    

    
      	
               
      

            	
              ___________________________________________________________________________

            

    

    

    
      	
               
      

            	
              Note:  To
      name a trust as Beneficiary, please provide the name of the trustee(s) and
      the exact
      name and date of the trust
agreement.

            

    

    

    I
understand that I may change these designations of beneficiary by filing a new
written designation with the Plan Administrator.  I further understand
that the designations will be automatically revoked if the Beneficiary
predeceases me, or, if I have named my spouse as beneficiary and our marriage is
subsequently dissolved.

    

    

    Participant
Name:______________________________

    

    Participant
Signature:______________________________

    

    Date:  _____________

    

    

    Witness
Name:  ______________________________

    

    Witness
Signature:______________________________

    

    Date:    _____________

    
 

    Acknowledged
by the Plan Administrator this ________ day of ___________________,
2005

    

    

    By  _________________________________

    

    Title  ________________________________

     

    PARTICIPANT ELECTION FORM

     

    I,
__________________________________________, a designated employee as set forth
in Section 2.1 of the Dubuque Bank and Trust Company Executive Supplemental Life
Insurance Plan dated January 1, 2005 (the “Plan”), hereby elect to become a
Participant of this Plan according to Section 2.2 of the
Plan.  Additionally, I acknowledge that I have read the Plan document
and agree to be bound by its terms.

    

    

    Executed
this _____________ day of ____________________, 2005.

    

    

    Printed
Name:______________________________

    

    Signature:  ______________________________

    

    Date:  _____________

    
 

    Acknowledged
by the Plan Administrator this ________ day of ___________________,
2005.

    

    

    By  _________________________________

    

    Title  ________________________________ex103051208.htm

Exhibit 10.3

    HEARTLAND
FINANCIAL USA, INC.

    EXECUTIVE
LIFE INSURANCE BONUS PLAN

    

    

    This Plan, made and entered into
effective as of December 31, 2007 by Heartland Financial USA, Inc. (the
“Company”).

    

    W I T N E S S E T
H

    

    WHEREAS, the Company desires to
establish the Heartland Financial USA, Inc. Executive Life Insurance Bonus Plan
(the “Plan”) to provide certain Employees with bonus compensation in recognition
of such Employees’ contributions to the financial success of the Company;
and

    

    WHEREAS, the Company and such Employee
who is a participant in the Plan will enter into an Agreement to reflect the
terms and conditions of the bonus arrangement;

    

    NOW, THEREFORE, in consideration of the
premises and the material covenants and agreements contained herein, the Company
does hereby establish the Plan as follows:

    

    

    SECTION
1

    DEFINITIONS

    

    “Agreement” shall mean an Executive
Life Insurance Bonus Plan Agreement between an Employer and a
Participant.  The form of each such Agreement is set forth in Exhibit
A hereto.

    

    “Change of Control” shall
mean:

    

    
      	
              (i)  

            	
              The
      consummation of the acquisition by a person (as such term is defined in
      Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended
      (the “1934 Act”)) of beneficial ownership (within the meaning of Rule
      13d-3 promulgated under the 1934 Act) of fifty-one percent (51%) or more
      of the combined voting power of the then outstanding voting securities of
      the Employer of a Participant or the Company;
or

            

    

    

    
      	
              (ii)  

            	
              The
      individuals who, as of the date hereof, are members of the Board of
      Directors of the Company (the “Board”) cease for any reason to constitute
      a majority of the Board, unless the election, or nomination for election
      by the stockholders, of any new director, was approved by a majority vote
      of the Board and such new director shall, for purposes of this Plan, be
      considered as a member of the Board;
or

            

    

    

    
      	
              (iii)  

            	
              Approval
      by the stockholders of the Employer of a Participant or the Company of (1)
      a merger or consolidation if the stockholders, immediately before such
      merger or consolidation, do not, as a result of such merger or
      consolidation, own, directly or indirectly, more than fifty-one percent
      (51%) of the combined voting power of the then outstanding voting
      securities of the entity resulting from such merger or consolidation in
      substantially the same proportion as their ownership of the combined
      voting power of the voting securities of such Employer or the Company
      outstanding immediately before such merger or consolidation; or (2) a
      complete liquidation or dissolution or a plan for the sale or other
      disposition of all or substantially all of the assets of such Employer or
      the Company.

            

    

    

    Notwithstanding
the foregoing, a Change of Control shall not be deemed to occur solely because
fifty-one percent (51%) or more of the combined voting power of the then
outstanding securities of the Employer or the Company are acquired by a trustee
or other fiduciary holding securities under one or more benefit plans maintained
for employees of the entity; or (2) any corporation which, immediately prior to
such acquisition, is owned directly or indirectly by the stockholders in the
same proportion as their ownership of stock immediately prior to such
acquisition.

    

    “Employer” shall mean the Company or
any subsidiary of the Company.

    

    “Participant” shall mean an employee of
an Employer who has become a participant in this Plan as provided in Section 2
hereof.

    

    “Plan” shall mean the Heartland
Financial USA, Inc. Executive Life Insurance Bonus Plan.

    

    “Policy” shall mean the flexible
premium policy of insurance on the life of a Participant as specified in the
Agreement.

    

    SECTION
2

    PARTICIPATION

    

    An employee of an Employer shall become
a Participant in this Plan as of the effective date of the Agreement entered
into between such employee and the employee’s Employer.  A Participant
shall remain a Participant in the Plan until termination of such
Agreement.

    

    SECTION
3

    BONUS
COMPENSATION

     

    An
Employer shall pay to each Participant, as provided in Section 4 below, for
services rendered to the Employer an amount equal to the annual premium on the
Policy insuring the life of such Participant as provided in the Agreement with
such Participant.  Each annual premium shall be determined by the
Employer to be an amount that is sufficient such that, if the Agreement remains
in effect until the Participant attains age 65, the Policy will remain in force
until the Participant attains age 80 under Policy interest crediting rates and
Policy charges in effect as of the Effective Date of the Agreement. Each Policy
shall have an initial face amount as set forth in the Agreement.  As
of each January 1 beginning January 1, 2009 and prior to termination of
this Agreement, the face amount of the Policy shall be increased by five percent
(5%) over the face amount of the Policy immediately prior to such increase;
provided, that in no event shall the face amount at any time exceed
$1,000,000.

    

    In the
event a Participant shall cease to be a full-time employee of an Employer and
becomes a part-time employee on or after age 55 and after the completion of 10
years of service, the Employer shall continue bonus payments hereunder as if
such Participant had continued as a full-time employee.  However, the
face amount of the Policy shall not be increased by 5% over the previous face
amount after the Participant elects part-time status.  Premium
payments will be adjusted to maintain the face amount of the Policy at the date
the Participant elects part-time status until the Participant attains age 80
under Policy interest crediting rates and Policy charges in effect at the date
the Participant begins part-time status.

    

    In the
event of any other change to part-time status, the bonus payments otherwise
payable hereunder shall be prorated based upon the ratio of the hours to be
worked by the Participant per year under the part-time arrangement with the
Employer to 2,080 hours.  As a condition of continuing bonus payments,
a Participant who has become a part-time employee shall sign an acknowledgement
of the effect of changing to such status.

    

    As
additional bonus compensation, the Employer shall pay to the Participant an
amount equal to forty percent (40%) of the annual premium paid
hereunder.

    

    SECTION
4

    PAYMENT
OF BONUS COMPENSATION

     

    The bonus
compensation payable to a Participant pursuant to Section 3 above
representing the annual premium shall be paid by the Company directly to the
insurance company that issued the Policy.  Each premium payment shall
be made on or prior to the due date for such premium
payment.   The additional bonus compensation provided for in the
last sentence of Section 3 above shall be paid in cash to the Participant within
the same calendar year but not later than sixty (60) days following each premium
payment.

    

    SECTION
5

    POLICY
OWNERSHIP

     

    The
Policy with respect to a Participant shall be purchased and owned by the
Participant.  All incidents of ownership of the Policy shall belong to
the Participant, including, without limitation, the right to name a beneficiary
of the Policy.  Notwithstanding the foregoing, the Participant may not
surrender the Policy or obtain Policy loans prior to termination of this
Agreement.

    

    SECTION
6

    TERMINATION

     

    Subject
to Section 7 below, each Agreement shall terminate as of the earlier of (i) the
date of the Participant’s termination from employment with the Employer,
including, without limitation, termination of employment on account of
disability or retirement, or (ii) the Participant’s attainment of age
65.  Additionally, each Agreement may be terminated by mutual written
agreement of the Employer and the Participant.

    

    SECTION
7

    CHANGE
OF CONTROL

     

    In the event of a Change of Control,
the Employer, the Company or any successor to this Plan shall pay, as provided
in Section 4 above, bonus compensation in a lump sum in an amount necessary to
provide the death benefit listed on Schedule 2 to the Participant’s Agreement
based upon the date of the Change of Control until the date the Participant
would attain age 80.  Notwithstanding the foregoing, the payment
hereunder shall not exceed an amount that would cause the Policy to cease to be
a “life insurance” contract under Section 7702(a) of the Internal Revenue
Code using the guideline premium requirements of Section 7702(c) of the
Internal Revenue Code.  Additionally, the Employer, the Company or any
successor to this Plan shall pay to the Participant an amount equal to forty
percent (40%) of such lump sum payment.  If the Participant incurs
legal fees or other expenses on or after the date of a Change of Control in an
effort to enforce or obtain the benefits of this Plan, the Company, shall,
regardless of the outcome of such effort, reimburse the Participant for such
legal fees and other expenses in an amount not to exceed $500,000.

    

    SECTION
8

    AMENDMENT

     

    With
respect to a current (as of 12/31/07) Participant, this Plan shall not be
modified or amended without the consent of the Participant.  With
respect to any future Participants, the Company may amend this Plan at any
time.

    

    

    IN
WITNESS WHEREOF, the Company has caused this Plan to be executed and the
Employee has executed this Agreement, all as of December 31, 2007.

     

    HEARTLAND FINANCIAL USA,
INC.

     

    

     

    By: ___________________________                                                              

    Its: ___________________________                                                               

    
       

       

    

    EXHIBIT
A

    

    EXECUTIVE
LIFE INSURANCE BONUS PLAN AGREEMENT

    

    

    This AGREEMENT, made and entered into
effective as of December 31, 2007 by and between the Employer and
_____________________ (the “Employee”).

    

    W I T N E S S E T
H

    

    WHEREAS, the Company desires to provide
the Employee with bonus compensation in recognition of the Employee’s
contribution to the financial success of the Company; and

    

    WHEREAS, the Company and the Employee
desire to enter into this Agreement to reflect the terms and conditions of the
Heartland Financial USA, Inc. Executive Life Insurance Bonus Plan;

    

    NOW, THEREFORE, in consideration of the
premises and the material covenants and agreements contained herein, the Company
and the Employee do hereby agree as follows:

    

    

    SECTION
1

    BONUS
COMPENSATION

     

    The
Company shall pay to the Employee, as provided in Section 2 below, for services
rendered to the Company an amount equal to the annual premium on a flexible
premium policy of insurance on the life of the Employee (the
“Policy”).  Each annual premium shall be determined by the Employer to
be an amount that is sufficient such that, if this Agreement remains in effect
until the Participant attains age 65, the Policy will remain in force until the
Participant attains age 80 under Policy interest crediting rates and Policy
charges in effect as of the Effective Date of this Agreement; see attached
Schedule 1, which is a life insurance illustration produced for the Employee
using the insurance carrier’s policy interest crediting rates and policy charges
as of the Effective Date. The Policy shall have an initial face amount of
________, representing two (2) times the Employee’s calendar year 2007
compensation.   As of each January 1 beginning January 1,
2009 and prior to termination of this Agreement pursuant to Section 4
below, the face amount of the Policy shall be increased by five percent (5%)
over the face amount of the Policy immediately prior to such increase; provided,
that in no event shall the face amount at any time exceed
$1,000,000.

    

    In the
event an Employee shall cease to be a full-time employee of an Employer and
becomes a part-time employee on or after age 55 and after the completion of 10
years of service, the Employer shall continue bonus payments hereunder as if
such Employee had continued as a full-time employee.  However, the
face amount of the Policy shall not be increased by 5% over the previous face
amount after the Participant elects part-time status.  Premium
payments will be adjusted to maintain the face amount of the Policy at the date
the Participant elects part-time status until the Participant attains age 80
under Policy interest crediting rates and Policy charges in effect at the date
the Participant begins part-time status.

    

    In the
event of any other change to part-time status, the bonus payments otherwise
payable hereunder shall be prorated based upon the ratio of the hours to be
worked by the participant per year under the part-time arrangement with the
Employer to 2,080 hours.  As a condition of continuing bonus payments,
an Employee who has become a part-time employee shall sign an acknowledgement of
the effect of changing to such status.

    

    As
additional bonus compensation, the Employer shall pay to the Participant an
amount equal to forty percent (40%) of the annual premium paid
hereunder.  The compensation to be paid hereunder shall be in addition
to all other compensation payable by the Company to the Employee.

    

    SECTION
2

    PAYMENT
OF BONUS COMPENSATION

     

    The bonus
compensation payable to the Employee representing the annual premium shall be
paid by the Company directly to the insurance company that issued the
Policy.  Each premium payment shall be made on or prior to the due
date for such premium payment.  The additional bonus compensation
provided for in  Section 1 above shall be paid in cash to the Employee
within the same calendar year but not later than sixty (60) days following each
premium payment.   The Employee acknowledges that all bonus
compensation shall represent taxable income to the Employee.  The
Company shall withhold, from such payment or any other compensation payable to
the Employee, the applicable required tax withholding for federal, state and
local income taxes and FICA taxes.

    

    SECTION
3

    POLICY
OWNERSHIP

     

    The
Policy shall be purchased and owned by the Employee.  All incidents of
ownership of the Policy shall belong to the Employee, including, without
limitation, the right to name a beneficiary of the
Policy.  Notwithstanding the foregoing, the Employee may not surrender
the Policy or secure any Policy loan prior to termination of this
Agreement.

    

    SECTION
4

    TERMINATION

     

    This
Agreement shall terminate as of the earlier of (i) the date of the Participant’s
termination from employment with the Employer, including, without limitation,
termination of employment on account of disability or retirement, or (ii) the
Participant’s attainment of age 65.  Additionally, this Agreement may
be terminated by mutual written agreement of the Company and the
Employee.  Upon termination of this Agreement, the Company’s
obligations under Sections 1 and 2 above shall cease.

    

    SECTION
5

    INSURER
NOT A PARTY

     

    The
insurer issuing the Policy shall not be a party to this Agreement for any
purpose.

    

    SECTION
6

    CHANGE
OF CONTROL

     

    In the event of a Change of Control (as
defined in the Heartland Financial USA, Inc. Executive Life Insurance Bonus
Plan), the Employer (or any successor to this Plan) shall pay, as provided in
Section 4 above, bonus compensation in a lump sum in an amount necessary to
provide the death benefit listed on Schedule 2 hereto based upon the date of the
Change of Control until the date the Employee would attain age
80.  Notwithstanding the foregoing, the payment hereunder shall not
exceed an amount that would cause the Policy to cease to be a “life insurance”
contract under Section 7702(a) of the Internal Revenue Code using the
guideline premium requirements of Section 7702(c) of the Internal Revenue
Code.  Additionally, the Employer, the Company or any successor to
this Plan shall pay to the Participant an amount equal to forty percent (40%) of
such lump sum payment.  If the Employee incurs legal fees or other
expenses on or after the date of a Change of Control in an effort to enforce or
obtain the benefits of this Plan, the Company, shall, regardless of the outcome
of such effort, reimburse the Employee for such legal fees and expenses in an
amount not to exceed $500,000.

    

    SECTION
7

    AMENDMENT

     

    This
Agreement shall not be modified or amended except in writing duly executed by
the Company and the Employee.

    

    SECTION
8

    NO
CONTRACT OF EMPLOYMENT

     

    This
Agreement shall not constitute a contract for the continuing employment of the
Employee by the Company or any affiliate of the Company.

    

    SECTION
9

    ASSIGNMENT

     

    This
Agreement may be assigned to an affiliate of the Company who becomes the
employer of the Employee.

    

    
       

    

     

    IN
WITNESS WHEREOF, the Employer has caused this Agreement to be executed and the
Employee has executed this Agreement, all as of December 31, 2007.

     

    

     

    __________________________

     

     

    By:  _______________________                                                              

    Its:  _______________________                                                              

    

    

    EMPLOYEE

                                    ___________________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]