Document:

Exhibit 10.9

 

Provident
Bank

 

Long-Term
Incentive Plan

 

February
2005

 

    	 

    	 

    

 

2005 Amended and Restated Long-Term
Incentive Plan

 

 

Objective

Provident Bank is committed to rewarding and retaining senior managers
who make substantial contributions to the long-term success and growth in the Bank. The Bank’s original long-term incentive
plan (“Plan”) was developed in 1999, with initial phantom share grants awarded in 2000. Based on significant growth
of the Bank since 2000, the Plan has been modified to include additional participants and to align more closely with competitive
market practice. The original intent of the plan has stayed the same. The objectives of Provident Bank’s Long-Term Incentive
Plan are to:

 

		·	Align key executives with the Bank’s long-term goals and objectives.

 

		·	Encourage focus and collaboration needed to ensure the Bank continues
to grow and enhance its earnings.

 

		·	Provide competitive total compensation opportunities aligned with the
Banks’ success.

 

		·	Enable the Bank to attract and retain talented senior management.

 

The Plan is based on the concept of stock options
used by public banks, but since Provident Bank is a mutual, phantom shares are used and valued according to the Bank’s ability
to grow earnings and capital.

 

Eligibility

Select key senior managers. The Plan is intended to include those
who have the most influence on the long-term earnings of the Bank. In general, participants must be hired by January 1 of the plan
year to be included in that years’ grants. However, newly eligible participants may be eligible to receive an initial award
at the time of their hire date.

 

Performance Period

The Plan operates on a calendar year schedule (January 1 –
December 31). Grant awards will be considered annually, although actual grants will vary based on the achievement of pre-defined
performance goals and objectives.

 

Long-Term Incentive Award Ranges

Each participant will have a specified target incentive grant award
based on his or her role at the Bank. Target incentives are based on competitive practices and reflect the amount of long-term
incentive to be paid for meeting defined goals.

 

Plan grants will be allocated based on a combination of Bank and
individual performance. Each participant will have specific performance measures (e.g. Bank performance, department performance,
individual production goals) that will have a defined goals. At the end of each year, the participant will be reviewed relative
to his/her goals and an overall performance assessment made to determine Plan award.

 

Attachment (A) Shows award grant ranges.

 

    	1

    	 

    

 

Plan Gate

In order for the Plan to pay out any
awards in a given year, Provident Bank must achieve a threshold level of earnings. Threshold earnings are defined
as pretax earnings, net of extraordinary items and securities gains, at 90% of Budgeted pretax earnings. Once we achieve this threshold
level of performance, all participants are eligible for an award based on their specific performance goals. 

 

Phantom Share Grant Award

There are three key steps in determining Plan awards each year.

 

		1.	Determine whether Plan exceeded the gate level of earnings. If the earnings exceeded threshold earnings, the Plan is activated.
If earnings did not achieve this gate, there are no awards granted for any participant in that year.

		2.	Review executive performance against the specific goals set at the start of the year to determine the relative award (i.e.
threshold, target, stretch). Award grants will be assessed based on achievements relative to the threshold, target and stretch
performance goals. Interpolation between the measures will be calculated to encourage and reward incremental performance improvement.
This will determine the participant’s value of the award as a percentage of salary.

		3.	The value of the executive’s award (as percent of base salary) will then be converted to a number of phantom shares based
on the present value1 of the share. These shares will vest fully after five years at which time the value to the participant
will grow in line with increases in Bank’s earnings over that five-year period.

 

Phantom Share Value 

The phantom shares operate in a manner similar to stock options.
However, because Provident Bank does not have real shares of stock, we use a bookkeeping process to determine the value of an underlying
“phantom share”. The total number of shares for the Plan was determined based on the Bank’s tier 1 capital in
1999. At the inception of the Plan, the bank had a total of 1,957,745 Share Units with a calculated Share Unit Value (SUV) of $10.00.

 

The SUV going forward is determined by dividing the Bank’s
tier 1 capital as of December 31 of each Plan year by the total number of Share Units – 1,957,745 that were created at the
time of the initiation of the plan. The SUV is adjusted for extraordinary items and securities gains, net of tax. In addition,
the Board of Directors may, at its discretion, recognize outstanding achievement by the Bank in a given year by adding an amount
up to 10% to that year’s SUV.

 

In summary, participants receive the appreciation in the SUV of
the phantom stock share that occurs between the time of the share grant and the time of its redemption.

 

 

		1	Because a phantom share operates similar to a stock option, we use a valuation process that is similar as well. Because stock
options and phantom shares have no value until the vesting period is served, we determine the future value of a stock grant, given
certain expectations of growth and then determine an equivalent cash value today to determine appropriate awards.

 

    	2

    	 

    

 

For example

 

		·	Tier 1 capital at the time of grant is divided by the total number
of shares allocated to the Plan (1,957,745) to determine the original SUV.

		·	An executive is granted shares with current value based on the original
SUV and a five-year cliff vest (i.e. the executive receives the value of the award after five years).

		·	Earnings during the vesting period increase the bank’s tier
1 capital.

		·	Tier 1 capital (adjusted for any extraordinary items and/or securities
gains) at the time of vesting is divided by the total number of shares allocated to the Plan (1,957,745) to determine the present
SUV.

		·	The difference between the present SUV and the original SUV is then
multiplied by the number of shares granted to determine a cash award. 

 

The plan design supports its objective to align participants with
the long-term earnings of the Bank while providing a powerful retention feature. For new employees, the Plan will provide it’s
first payment after five years’ service. After five years, assuming annual grants are awarded, participants will receive
payouts based on the growth of the shares granted five years prior.

 

Share Allocation

The Plan is funded with 500,000 shares for employees and 121,000
shares for Directors, which are available for distribution while the Plan remains in force. Grant awards reduce available shares,
while redeemed vested shares increase available shares.

 

Vesting

Each phantom stock grant will have a five year cliff vesting provision
that requires the participant to wait five years before the value of the grant is awarded.

 

All grants are considered fully vested upon retirement at age 62
or later, death, or termination as a result of full disability of the participant.

 

If the participant leaves the Bank prior to satisfying the vesting
requirement, his/her grant will be forfeited.

 

Plan participants terminated for cause will forfeit all rights to
their unvested grants.

 

    	3

    	 

    

 

Terms and Conditions

 

 

 

Effective Date

This Plan is effective January 1, 2005 to reflect plan year January
1, 2005 to December 31, 2005. The Plan will be reviewed annually by the Bank’s Board and Executive Management to ensure proper
alignment with the Bank’s business objectives. Provident Bank retains the rights as described below to amend, modify or discontinue
the Plan at any time during the specified period.

 

Program Administration

The Plan is authorized and administered by the Board of Directors,
with recommendations from the Compensation Committee. The Chief Executive Officer and/or the Board of Directors have the sole authority
to interpret the Plan and to make or nullify any rules and procedures, as necessary, for proper administration. Any determination
by the Chief Executive Officer and/or Board of Directors will be final and binding on all participants.

 

Program Changes or Discontinuance

Provident Bank has developed the Plan on the basis of existing business,
market and economic conditions; current services; and staff assignments. If substantial changes occur that affect these conditions,
services, assignments, or forecasts, Provident Bank may add to, amend, modify or discontinue any of the terms or conditions of
the Plan at any time.

 

The Board of Directors may, at its sole discretion, waive, change
or amend any portion of the Plan, as it deems appropriate.

 

Long-Term Incentive Award Payments

Phantom share grants will be awarded as soon after the year-end
as possible. Once vested, the shares will be paid in cash, based on the value determined. Payouts will be made within the first
two and a half months following year-end. Phantom share payments are considered taxable income to participants in the year paid
and will be subject to withholding for required income and other applicable taxes.

 

Any rights accruing to a participant or his/her beneficiary under
the Plan shall be solely those of an unsecured general creditor of Provident Bank. Nothing contained in the Plan, and no action
taken pursuant to the provisions hereof, will create or be construed to create a trust of any kind, or a pledge, or a fiduciary
relationship between Provident Bank or the participant or any other person. Nothing herein will be construed to require Provident
Bank to maintain any fund or to segregate any amount for a participant’s benefit.

 

Program Funding

The Plan is funded and accrued based on Bank performance results.

 

Reduced Work Schedules, Promotions, and Transfers

If a participant changes his/her role during the Plan year, and
it is deemed that new phantom share grant targets are appropriate, he/she will be eligible for the new target awards on a pro rata
basis (i.e. the award will be prorated based on the number of months employed in the respective positions.)

 

In the event of an approved leave of absence, the award opportunity
level for the year will be adjusted to reflect the time in active status.

 

    	4

    	 

    

 

Ethics and Interpretation

If there is any ambiguity as to the meaning of any terms or provisions
of this plan or any questions as to the correct interpretation of any information contained therein, the Bank’s interpretation
expressed by the CEO and/or Board of Directors will be final and binding.

 

The altering, inflating, and/or inappropriate manipulation of performance/financial
results or any other infraction of recognized ethical business standards, will subject the employee to disciplinary action up to
and including termination of employment. In addition, any incentive compensation as provided by this plan to which the employee
would otherwise be entitled will be revoked.

 

Participants who have willfully engaged in any activity, injurious
to the Bank, will upon termination of employment, death, or retirement, forfeit any incentive award earned during the award period
in which the termination occurred.

 

Miscellaneous

The Plan will not be deemed to give any participant the right to
be retained in the employ of Provident Bank, nor will the Plan interfere with the right of Provident Bank to discharge any participant
at any time.

 

In the absence of an authorized, written employment contract, the
relationship between employees and Provident Bank is one of at-will employment. The Plan does not alter the relationship.

 

This incentive plan and the transactions and payments hereunder
shall, in all respect, be governed by, and construed and enforced in accordance with the laws of the state of Massachusetts.

 

Each provision in this Plan is severable, and if any provision is
held to be invalid, illegal, or unenforceable, the validity, legality and enforceability of the remaining provisions shall not,
in any way, be affected or impaired thereby. 

 

This plan is proprietary and confidential to Provident Bank and
its employees and should not be shared outside the organization.

 

    	5

    	 

    

 

Attachment (A)

 

Long-Term Incentive Award Ranges – Tier 1

 

	 	 	Annual LTI Grant	 
	 	 	%
    of Base Salary	 
	 	 	Threshold	 	 	Target	 	 	Stretch	 
	President/CFO	 	 	10	%	 	 	20	%	 	 	30	%

 

		o	Threshold = 90% of Budgeted Pretax Earnings

 

		o	Target = Budgeted Pretax Earnings

 

		o	Stretch = 115% of Budgeted Pretax Earnings

 

Long-Term Incentive Award Ranges – Tier 2

 

	 	 	Annual LTI Grant	 
	 	 	%
    of Base Salary	 
	 	 	Threshold	 	 	Target	 	 	Stretch	 
	EVP Senior Lender	 	 	5	%	 	 	15	%	 	 	25	%

 

50% of the Award Based on the Following:

 

		o	Threshold = Net Total Loan Goal Misses Budget by no more than 10%

 

		o	Target = Net Total Loan Goal Meets Budget

 

		o	Stretch = Net Total Loan Goal Exceeds Budget by 20%

 

Strong Consideration to be given to Volume, Mix, Credit
Quality and Yield

 

50% of the Award Based on Bank Performance as Follows:

 

		o	Threshold = 90% of Budgeted Pretax Earnings

 

		o	Target = Budgeted Pretax Earnings

 

		o	Stretch = 115% of Budgeted Pretax Earnings

 

    	6

    	 

    

 

Attachment (A)

 

Long-Term Incentive Award Ranges – Tier 2 (Continued)

 

	 	 	Annual LTI Grant	 
	 	 	%
    of Base Salary	 
	 	 	Threshold	 	 	Target	 	 	Stretch	 
	SVP Retail Banking	 	 	5	%	 	 	15	%	 	 	25	%

 

50% of the Award Based on the Following:

 

		o	Threshold = Net Deposit Goal Misses Budget by no more than 10%

 

		o	Target = Net Deposit Goal Meets Budget

 

		o	Stretch = Net Deposit Goal Exceeds Budget by 20%

 

Strong Consideration to be given to Mix and Yield

 

50% of the Award Based on Bank Performance as Follows:

 

		o	Threshold = 90% of Budgeted Pretax Earnings

 

		o	Target = Budgeted Pretax Earnings

 

		o	Stretch = 115% of Budgeted Pretax Earnings

 

    	7

    	 

    

 

Attachment (A)

 

Long-Term Incentive Award Ranges – Tier 3

 

	 	 	Annual LTI Grant	 
	 	 	%
    of Base Salary	 
	 	 	Target	 	 	Stretch	 
	SVP Senior Credit Officer	 	 	10	%	 	 	20	%

 

50% of the Award Based on the Following:

 

		o	Target = Net Total Loan Goal Meets Budget

 

		o	Stretch = Net Total Loan Goal Exceeds Budget by 20%

 

Strong Consideration to be given to Volume, Mix, Credit
Quality and Credit Administration

 

50% of the Award Based on Bank Performance as Follows:

 

		o	Target = Budgeted Pretax Earnings

 

		o	Stretch = 115% of Budgeted Pretax Earnings

 

	 	 	Annual LTI Grant	 
	 	 	%
    of Base Salary	 
	 	 	Threshold	 	 	Target	 	 	Stretch	 
	SVP Commercial Lending, VP Commercial
    Lenders	 	 	0	%	 	 	10	%	 	 	20	%

 

		o	Threshold = N/A

 

		o	Target = Loan Goals Achieved (Volume, Mix, Credit Quality and Rate)

 

		o	Stretch = Loan Goals Exceeded by 25%

 

    	8EX 10.37 Change in Control Agreements between Heartland Financial USA, Inc and Executive Officers

CHANGE OF CONTROL AGREEMENT

THIS CHANGE OF CONTROL AGREEMENT (this “Agreement”) is made as of the 1st day of January, 2015, (the “Effective Date”) by and between HEARTLAND FINANCIAL USA, INC., a Delaware corporation, (the “Company”) and XXXXXXXXX (the “Employee”).

RECITALS

A.    The Employee is currently serving as an employee of the Company or one of its Affiliates.

B.    The Company desires to continue to employ the Employee as an employee of the Company or one of its Affiliates and the Employee is willing to continue such employment.

C.    The Company recognizes that circumstances may arise in which a change of control of the Company through acquisition or otherwise may occur thereby causing uncertainty of employment without regard to the competence or past contributions of the Employee, which uncertainty may result in the loss of valuable services of the Employee, and the Company and the Employee wish to provide reasonable security to the Employee against changes in the employment relationship in the event of any such change of control.

NOW, THEREFORE, in consideration of the premises and of the covenants and agreements hereinafter contained, it is covenanted and agreed by and between the parties hereto as follows:

1.    Payment of Severance Amount.  If the Employee’s employment by the Company, or any Affiliate or successor of the Company, shall be subject to a Termination within the Covered Period, then the Company shall provide the Employee the following benefits:

A.Subject to deferral in accordance with Section 6.A. of this Agreement, the Employee shall receive the applicable Severance Amount in lump sum on the next regular payroll payment date following the Termination Date.

B.On the next regular payroll payment date following the Termination Date the Company shall pay the Employee a lump sum payment in an amount equal to the sum of all amounts earned or accrued through the Termination Date, including any annual salary, bonus, vacation pay, sick pay or other paid time off, which has accrued but has not been paid or used.

The Employee’s rights following a Termination with respect to any benefits, incentives or awards provided to the Employee pursuant to the terms and conditions of any plan, program or arrangement sponsored or maintained by the Company, whether tax-qualified or not, including but not limited to the Company’s 2012 Long-Term Incentive Plan, which are not specifically addressed herein, shall be subject to the terms and conditions of such plan, program or arrangement and this Agreement shall have no effect upon such terms and conditions except as specifically provided herein.

    

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2.    Definitions.  As used throughout this Agreement, all of the terms defined in this paragraph 2 shall have the meanings given below.

A.    An “Affiliate” shall mean any entity which owns or controls, is owned by or is under common ownership or control with, the Company.

B.    “Base Compensation” shall mean the amount equal to the sum of (i) the greater of Employee’s then-current annual salary or the Employee’s annual salary as of the date one (1) day prior to the Change of Control; and (ii) the average of the three (3) most recent bonuses paid to the Employee.

C.    A “Change of Control” shall mean:

		
	(i)
	the consummation of the acquisition by any 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

		
	(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 vote of a majority of the Board, and such new director shall, for purposes of this Agreement, be considered as a member of the Board; or

		
	(iii)
	the consummation by 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 the Company outstanding immediately before such merger or consolidation; or (2) a complete liquidation or dissolution or an agreement for the sale or other disposition of all or substantially all of the assets of 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 Company 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 

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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.

D.    “Covered Period” shall mean the period beginning six (6) months prior to a Change of Control and ending twenty-four (24) months after a Change of Control. 

E.    “Good Reason” shall mean the Employee’s voluntary Termination of employment for one or more of the following reasons; provided, however, that for any of the following events that occur during the six (6) month period prior to a Change of Control, the Employee may only voluntarily terminate employment for Good Reason based upon such circumstances by giving written notice (as described below) on or before the date which is 30 days following such Change of Control:

(i)    an material and adverse dimunition in the nature, scope or status of the Employee’s position, authorities or duties from those in effect immediately prior to the Covered Period, including, without limitation, if the Employee ceases to be an executive officer of a public company, if immediately prior to the Covered Period the Employee was an executive officer of a public company;

(ii)    a material reduction in Employee’s Base Compensation;

(iii)    relocation of Employee’s primary place of employment of more than 50 miles from Employee’s primary place of employment prior to the Covered Period or a requirement that Employee engage in travel that is materially greater than prior to the Covered Period;

(iv)    failure by the acquirer to assume this Agreement at the time of the Change of Control, or;

(v)    a material breach by the Company, or its successor, of this agreement.

Notwithstanding the foregoing, prior to the Employee’s voluntary Termination for Good Reason, the Employee must give the Company written notice of the existence of any condition set forth in clause (i) - (v) above within 90 days of such initial existence and the Company shall have 30 days from the date of such notice in which to cure the condition giving rise to Good Reason, if curable.  If, during such 30-day period, the Company cures the condition giving rise to Good Reason, no benefits shall be due under paragraph 1 of this Agreement with respect to such occurrence.  If, during such 30-day period, the Company fails or refuses to cure the condition giving rise to Good Reason, the Employee shall be entitled to benefits under paragraph 1 of this Agreement upon such Termination; provided such Termination occurs within 24 months of such initial existence of the applicable condition.

F.    “Severance Amount” shall mean an amount equal to XXX (XX) times the Employee’s Base Compensation.

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G.    “Termination” shall mean termination of the Employee’s employment either:

(i)    by the Company or its successor, as the case may be, other than a Termination for Cause or any termination as a result of death or disability; 

(ii)    by the Employee for Good Reason; or

(iii)    Voluntary retirement by the Employee shall not constitute a “Termination” hereunder, unless it otherwise constitutes a Good Reason termination.

H.    “Termination Date” shall mean the date of employment termination indicated in the written notice provided by the Company or the Employee to the other.

I.    “Termination for Cause” shall mean only a termination by the Company as a result of: 

		
	(i)
	Employee’s willful and continuing failure, that is not remedied withintwenty days after receipt of written notice of such failure from the Company, to perform his obligations hereunder; 

		
	(ii)
	Employee’s conviction of, or the pleading of nolo contendre to, a crime of embezzlement, fraud or a felony under the laws of the United States or any state thereof;

		
	(iii)
	Employee’s breach of fiduciary responsibility; or

		
	(iv)
	an act of dishonesty by Employee which is materially injurious to the Company.

Any determination of Cause under this Agreement shall be made by resolution adopted by vote of the Board at a meeting called and held for that purpose.  

J.     “Voting Securities” shall mean any securities which ordinarily possess the power to vote in the election of directors without the happening of any pre-condition or contingency.

3.    Excise Tax Limitation.  

A.    It is the intention of the Company and the Employee that no portion of any payment under this Agreement, or payments to or for the benefit of the Employee under any other agreement or plan, be deemed to be an “Excess Parachute Payment” as defined in Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), or its successors.  It is agreed that the present value of and payments to or for the benefit of the Employee in the nature of compensation, receipt of which is contingent on the Change of Control, and to which Section 

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280G of the Code applies (in the aggregate “Total Payments”) shall not exceed an amount equal to one dollar less than the maximum amount which the Company may pay without loss of deduction under Section 280G(a) of the Code.  Present value for purposes of this Agreement shall be calculated in accordance with Section 280G(d)(4) of the Code.  Within one hundred and twenty (120) days following the earlier of (A) the giving of the notice of termination or (B) the giving of notice by the Company to the Employee of its belief that there is a payment or benefit due the Employee which will result in an excess parachute payment as defined in Section 280G of the Code, the Employee and the Company, at the Company’s expense, shall obtain the opinion of an Independent Advisor (as defined below), which opinion need not be unqualified, which sets forth (A) the Employee’s applicable Base Amount (as defined under Section 280G of the Code), (B) the present value of Total Payments and (C) the amount and present value of any excess parachute payments.  In the event that such opinion determines that there would be an excess parachute payment, the payment hereunder or any other payment determined by such Independent Advisor to be includable in Total Payments shall be modified, reduced or eliminated as specified by the Employee in writing delivered to the Company within ninety (90) days of his receipt of such opinions or, if the Employee fails to so notify the Company, then as the Company shall reasonably determine, so that under the bases of calculation set forth in such opinions there will be no excess parachute payment.  The provisions of this paragraph, including the calculations, notices and opinion provided for herein shall be based upon the conclusive presumption that (A) the compensation and benefits provided for in Section 2.B hereof and (B) any other compensation earned by the Employee pursuant to the Company’s compensation programs which would have been paid in any event, are reasonable compensation for services rendered, even though the timing of such payment is triggered by the Change of Control.  In the event that the provisions of Sections 280G and 4999 of the Code are repealed without succession, this paragraph shall be of no further force or effect.

B.     For purposes of this Agreement, “Independent Advisor” shall mean an independent nationally recognized accounting firm approved by the Company and the Employee, where such approval shall not be unreasonably withheld by either party.

4.    Medical and Dental Benefits.  If the Employee’s employment by the Company or any Affiliate or successor of the Company shall be subject to a Termination within the Covered Period, then to the extent that the Employee or any of the Employee’s dependents may be covered under the terms of any medical and dental plans of the Company (or any Affiliate) for active employees immediately prior to the termination, the Company will provide the Employee and those dependents with equivalent coverages for the period of XXXXX (XX) months during which Employee is subject to coverage pursuant to COBRA as long as the Employee elects COBRA Continuation Coverage, with the Employee required to make no contributions and to make no premium payments for the equivalent coverages during such period, regardless of whether Employee was required to contribute or make premium payments prior to such a Termination.  The Employee COBRA cost (which shall not exceed 102% of the aggregate cost of coverage of Employee paid by the Employer and the Employee prior to Termination) less the cost of coverage paid by the Employer prior to Termination, shall constitute compensation subject to withholding for tax purposes to Employee.  The coverages may be procured directly by the Company (or any Affiliate, if appropriate) apart from, and outside of the terms of the plans 

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themselves; provided that the Employee and the Employee’s dependents comply with all of the conditions of the medical or dental plans.  In the event the Employee or any of the Employee’s dependents become eligible for coverage under the terms of any other medical and/or dental plan of a subsequent employer which plan benefits are comparable to Company (or any Affiliate) plan benefits, coverage under Company (or any Affiliate) plans will cease for the eligible Employee and/or dependent.  The Employee and Employee’s dependents must notify the Company (or any Affiliate) of any subsequent employment and provide information regarding medical and/or dental coverage available.  In the event the Company (or any Affiliate) discovers that the Employee and/or dependent has become employed and not provided the above notification, all payments and benefits under this Agreement will cease.

5.    Out-Placement Counseling.  If the Employee’s employment by the Company or any Affiliate or successor of the Company shall be subject to a Termination within the Covered Period, the Company will provide out-placement counseling assistance in the form of either (i) reimbursement of the expenses incurred for such assistance within the twelve (12) month period following the Termination Date, or (ii) a pre-paid executive-level program, in either case, the amount shall not exceed one-quarter (1/4) of the Employee’s Base Compensation on the Termination Date. All reimbursements made pursuant to this Section 5 shall be made in accordance with Code Section 409A ("Section 409A") and Section 6(D) of this Agreement.

6.    Internal Revenue Code Section 409A.  

A.    Six-Month Delay in Payment.  If, as of the Termination Date, the Employee is a Specified Employee (as defined below), then, to the extent required pursuant to  Section 409A, payment of any portion of the Severance Amount that would otherwise have been paid to the Employee during the six-month period following the Termination Date and which would constitute deferred compensation under Section 409A (the “Delayed Payments”) shall be delayed until the date that is six months and one day following the Termination Date or, if earlier, the date of the Employee’s death (the “Delayed Payment Date”).  As of the Delayed Payment Date, the Delayed Payments shall be paid to the Employee in a single lump sum.  Any portion of the Severance Amount that was not otherwise due to be paid during the six-month period following the Termination Date shall be paid to the Employee in accordance with the payment schedule established under paragraph 1 of this Agreement.

B.    Separation Pay Not Subject to Section 409A.  To the extent that any portion, or all, of the Severance Amount meets the requirements of (i) and (ii) of this subparagraph B, the six-month delay rule set forth in subparagraph A above shall not apply to such portion of the Severance Amount.  The Severance Amount, or any portion thereof, will not be subject to the six-month delay rule set forth in subparagraph A above if and to the extent it is paid to the Employee no later than the last day of the second calendar year following the year in which the Termination occurs and it does not exceed two times the lesser of:

		
	(i)
	The sum of the Employee’s annual compensation (as determined in accordance with Section 1.409A-1(b)(9)(iii) of the regulations issued under Section 409A) for the calendar year preceding the year of Termination; or

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	(ii)
	The maximum amount that may be taken into account under a qualified plan pursuant to Code Section 401(a)(17) for the calendar year in which the Termination occurs.

C.    Definitions.

		
	(i)
	“Specified Employee” shall mean an individual who is a “key employee” (as defined in Code Section 416(i)(1)(A)(i), (ii) or (iii) (without regard to Code Section 416 (i)(5))) of the Company at any time during the twelve (12) month period ending on the Specified Employee Identification Date (as defined below).  If the Employee is a key employee as of the Specified Employee Identification Date, the Employee will be treated as a key employee for purposes of this Agreement for the entire twelve (12) month period beginning on the Specified Employee Effective Date (as defined below).  For purposes of determining whether the Employee is a key employee (as defined in Code Section 416(i)), the Company shall use the same definition of “compensation” as is used for purposes of the Company’s 401(k) plan.

		
	(ii)
	“Specified Employee Identification Date” shall mean December 31 of any calendar year.

		
	(iii)
	“Specified Employee Effective Date” shall mean April 1 of the calendar year following the year of the Specified Employee Identification Date.

D.    Miscellaneous.  Notwithstanding any other provisions of this Agreement to the contrary and to the extent applicable, it is intended that this Agreement be exempt from or otherwise comply with the requirements of Section 409A, and this Agreement shall be interpreted, construed and administered in accordance with this intent, so as to avoid the imposition of taxes and penalties on Employee pursuant to Section 409A.  However, the Company shall have no liability to Employee, Employee's beneficiaries or otherwise if this Agreement or any amounts paid or payable hereunder are subject to the additional tax and penalties under Section 409A.  For purposes of any provision of this Agreement providing for the payment of any amounts or benefits subject to 409A of the Code upon or following a termination of employment, references to a “Termination,” “Termination of employment,” “Termination for Cause” or like terms shall mean “separation from service” within the meaning of Section 409A.  Notwithstanding anything to the contrary herein, any payment or benefit under this Agreement that is exempt from Section 409A pursuant to Treas. Reg. 1.409A-1(b)(9)(v)(A), (B) or (C) shall be paid or provided to the Employee only to the extent that the expenses are not incurred, or the benefits are not provided, beyond the last day of the second taxable year of the Employee following the taxable year of the Employee in which the “separation from service” occurs; and provided further that such expenses are reimbursed no later than the last day of the third taxable year following the taxable year of the Employee in which the “separation from service” occurs.  Except as otherwise expressly provided herein, to the extent any expense reimbursement or the 

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provision of any in-kind benefit under this Agreement is determined to be subject to Section 409A, the amount of any such expenses eligible for reimbursement, or the provision of any in-kind benefit, in one taxable year shall not affect the expenses eligible for reimbursement in any other taxable year (except for any life-time or other aggregate limitation applicable to medical expenses), in no event shall any expenses be reimbursed after the last day of the taxable year following the taxable year in which Employee incurred such expenses, and in no event shall any right to reimbursement or the provision of any in-kind benefit be subject to liquidation or exchange for another benefit.  With respect to any installment payments made under this Agreement, each payment in a series of installment payments shall be deemed to be a separate payment for purposes of Section 409A.

7.    Notices.  Notices and all other communications under this Agreement shall be in writing and shall be deemed given when mailed by United States registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

If to the Company to:

Heartland Financial USA, Inc.
Attention:  President; and Executive Vice President Human Resources
1398 Central Avenue
Box 778
Dubuque, Iowa  52004-0778

If to the Employee to:

XXXXX XXXXXXXX
XXX XXXXXXXXXX
XXXXX, XX  XXXXX

or to such other address as either party may furnish to the other in writing, except that notices of changes of address shall be effective only upon receipt.

8.    Applicable Law.  This Agreement is entered into under, and shall be governed for all purposes by, the laws of the state of Iowa.

9.    Severability.  If a court of competent jurisdiction determines that any provision of this Agreement is invalid or unenforceable, then the invalidity or unenforceability of that provision shall not affect the validity or enforceability of any other provision of this Agreement and all other provisions shall remain in full force and effect.  The various covenants and provisions of this Agreement are intended to be severable and to constitute independent and distinct binding obligations.  Without limiting the generality of the foregoing, if the scope of any covenant contained in this Agreement is too broad to permit enforcement to its full extent, such covenant shall be enforced to the maximum extent permitted by law, and the Employee hereby agrees that such scope may be judicially modified accordingly.

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10.    Withholding of Taxes.  The Company may withhold from any benefits payable under this Agreement all federal, state, city or other taxes as may be required pursuant to any law, governmental regulation or ruling.

11.    Not an Employment Agreement.  Nothing in this Agreement shall give the Employee any rights (or impose any obligations) to continued employment by the Company or any Affiliate or successor of the Company, nor shall it give the Company any rights (or impose any obligations) for the continued performance of duties by the Employee for the Company or any Affiliate or successor of the Company.

12.    No Assignment.  The Employee’s rights to receive payments or benefits under this Agreement shall not be assignable or transferable whether by pledge, creation of a security interest or otherwise, other than a transfer by will or by the laws of descent or distribution.  In the event of any attempted assignment or transfer contrary to this paragraph, the Company shall have no liability to pay any amount so attempted to be assigned or transferred.  This Agreement shall inure to the benefit of and be enforceable by the Employee’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.

13.    Successors.  This Agreement shall be binding upon and inure to the benefit of the Company, its successors and assigns (including, without limitation, any company into or with which the Company may merge or consolidate).  The Company agrees that it will not affect the sale or other disposition of all or substantially all of its assets unless either (a) the person or entity acquiring the assets, or a substantial portion of the assets, shall expressly assume by an instrument in writing all duties and obligations of the Company under this Agreement, or (b) the Company shall provide, through the establishment of a separate reserve, for the payment in full of all amounts which are or may reasonably be expected to become payable to the Employee under this Agreement.

14.    Legal Fees.  All reasonable legal fees and related expenses (including the costs of experts, evidence and counsel) paid or incurred by the Employee pursuant to any dispute or question of interpretation relating to this Agreement shall be paid or reimbursed by the Company if the Employee is successful on the merits pursuant to a legal judgment, arbitration or settlement.

15.    Term.  The “Term” of this Agreement shall be the period commencing on the Effective Date and ending on December 31, XXXX.  As of December 31, XXXX, and each December 31 thereafter, the Term shall automatically renew for an additional one-year period unless the Company notifies the Employee in writing that the Term will not be renewed.  Any such notice of non-renewal must be delivered to the Employee at least 180 days before the date on which the Term would otherwise automatically renew.  In the event of a Change of Control during the Term, this Agreement shall remain in effect for the Covered Period.

16.    Amendment.  This Agreement may not be amended or modified except by written agreement signed by the Employee and the Company.

    

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17.    References.  Masculine pronouns are used herein solely for convenience of reference, and are intended to have general application.

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	IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and delivered as of the day and year first written.

	 
	 
	 
	 
	 

	HEARTLAND FINANCIAL USA, INC.

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	By:    
	 
	 
	 
	 

	 
	Mark Murtha
	 
	XXXXXX XXXXXX 
	Date

	 
	Executive Vice President, Human Resources
	 
	 
	 

                                        
                              
    
 

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